N-CSR 1 d847469dncsr.htm BLACKROCK FUNDS BLACKROCK FUNDS

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: 811-05742

Name of Fund:   BlackRock FundsSM

iShares Edge MSCI Min Vol EAFE Index Fund

iShares Edge MSCI Min Vol USA Index Fund

iShares Edge MSCI Multifactor Intl Index Fund

iShares Edge MSCI Multifactor USA Index Fund

iShares Russell Mid-Cap Index Fund

iShares Russell Small/Mid-Cap Index Fund

iShares Total U.S. Stock Market Index Fund

Fund Address:    100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock FundsSM,

55 East 52nd Street, New York, NY 10055

Registrant’s telephone number, including area code: (800) 441-7762

Date of fiscal year end: 07/31/2020

Date of reporting period: 07/31/2020

Item 1 – Report to Stockholders

 

 

LOGO   JULY 31, 2020

 

  

2020 Annual Report

 

BlackRock FundsSM

 

·  

iShares Russell Mid-Cap Index Fund

·  

iShares Russell Small/Mid-Cap Index Fund

·  

iShares Total U.S. Stock Market Index Fund

 

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of each Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from BlackRock or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.

You may elect to receive all future reports in paper free of charge. If you hold accounts directly with BlackRock, you can call (800) 441-7762 to inform BlackRock that you wish to continue receiving paper copies of your shareholder reports. If you hold accounts through a financial intermediary, you can follow the instructions included with this disclosure, if applicable, or contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. Please note that not all financial intermediaries may offer this service. Your election to receive reports in paper will apply to all funds advised by BlackRock Advisors, LLC, BlackRock Fund Advisors or their affiliates, or all funds held with your financial intermediary, as applicable.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive electronic delivery of shareholder reports and other communications by: (i) accessing the BlackRock website at blackrock.com/edelivery and logging into your accounts, if you hold accounts directly with BlackRock, or (ii) contacting your financial intermediary, if you hold accounts through a financial intermediary. Please note that not all financial intermediaries may offer this service.

 

Not FDIC Insured • May Lose Value • No Bank Guarantee

The Markets in Review

Dear Shareholder,

The last 12 months have been a time of sudden change in global financial markets, as a long period of growth and positive returns was interrupted in early 2020 by the emergence and spread of the coronavirus. For the first half of the reporting period, U.S. equities and bonds both delivered impressive returns, despite fears and doubts about the economy that were ultimately laid to rest with unprecedented monetary stimulus and a sluggish yet resolute performance from the U.S. economy. But as the threat from the coronavirus (or “COVID-19”) became more apparent throughout February and March 2020, countries around the world took economically disruptive countermeasures, causing a global recession and a sharp fall in equity prices. While markets have since recovered most of these losses as countries around the world adapt to life with the virus, lingering uncertainty about the depth and duration of the pandemic and an uptick in global infection rates tempered optimism late in the reporting period.

Returns for most securities were robust for the first half of the reporting period, as investors began to realize that the U.S. economy was maintaining the modest yet steady growth that had characterized this economic cycle. However, once stay-at-home orders and closures of non-essential businesses became widespread, many workers were laid off and unemployment claims spiked. The subsequent rapid decline in equity prices was followed by a slow recovery, and some economic indicators began to improve. U.S. large-capitalization stocks, which are often considered more resilient than smaller companies during market turbulence, advanced significantly. International equities from developed economies ended the 12-month reporting period with negative performance, while emerging market stocks posted a positive return.

The performance of different types of fixed-income securities diverged substantially due to a reduced investor appetite for risk. Treasuries benefited from the risk-off environment, and posted healthy returns, as the 10-year U.S. Treasury yield (which is inversely related to bond prices) fell to an all-time low. Investment-grade corporate bonds also delivered solid returns, while high-yield corporate returns were more modest due to credit concerns.

The U.S. Federal Reserve (the “Fed”) reduced interest rates three times in 2019, to support slowing economic growth. After the coronavirus outbreak, the Fed instituted two emergency rate cuts, pushing short-term interest rates close to zero. To stabilize credit markets, the Fed also implemented a new bond-buying program, as did several other central banks around the world, including the European Central Bank and the Bank of Japan.

Looking ahead, while coronavirus-related disruptions have clearly hindered worldwide economic growth, we believe that the global expansion is likely to continue once the outbreak subsides. Several risks remain, however, including a potential resurgence of the coronavirus amid loosened restrictions, policy fatigue among governments already deep into deficit spending, and structural damage to the financial system from lengthy economic interruptions.

Overall, we favor a moderately positive stance toward risk, and in particular toward credit given the extraordinary central bank measures taken in recent months. This support extends beyond investment-grade corporates and into high-yield, leading to attractive opportunities throughout the credit market. We believe that both U.S. Treasuries and sustainable investments can help provide portfolio resilience, and the disruption created by the coronavirus appears to be accelerating the shift toward sustainable investments. We remain neutral on equities overall while favoring European stocks, which are poised for cyclical upside as re-openings continue.

In this environment, our view is that investors need to think globally, extend their scope across a broad array of asset classes, and be nimble as market conditions change. We encourage you to talk with your financial advisor and visit blackrock.com for further insight about investing in today’s markets.

Sincerely,

 

LOGO

Rob Kapito

President, BlackRock Advisors, LLC

LOGO

Rob Kapito

President, BlackRock Advisors, LLC

 

Total Returns as of July 31, 2020
     6-month   12-month

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

   2.42%   11.96%

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

   (7.61)   (4.59)

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

   (7.34)   (1.67)

Emerging market equities
(MSCI Emerging Markets Index)

   3.08   6.55

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

   0.48   1.46

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

   9.92   15.55

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

   5.69   10.12

Tax-exempt municipal bonds
(S&P Municipal Bond Index)

   1.75   4.89

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

   0.62   4.07
Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.
 

 

 

2    THIS PAGE IS NOT PART OF YOUR FUND REPORT

Table of Contents

 

      Page  

The Markets in Review

      2  

Annual Report:

   

Fund Summaries

      4  

Portfolio Information

      10  

About Fund Performance

      12  

Disclosure of Expenses

      12  

Derivative Financial Instruments

      12  

Financial Statements:

   

Schedules of Investments

      13  

Statements of Assets and Liabilities

      71  

Statements of Operations

      73  

Statements of Changes in Net Assets

      74  

Financial Highlights

      76  

Notes to Financial Statements

      85  

Report of Independent Registered Public Accounting Firm

      97  

Important Tax Information

      98  

Disclosure of Investment Advisory Agreement and Sub-Advisory Agreement

      99  

Trustee and Officer Information

      102  

Additional Information

      106  

Glossary of Terms Used in this Report

      107  

 

LOGO

 

 

          3  

Fund Summary  as of July 31, 2020    iShares Russell Mid-Cap Index Fund

 

Investment Objective

iShares Russell Mid-Cap Index Fund’s (the “Fund”) investment objective is to seek to track the investment results of an index composed of mid-capitalization U.S. equities.

Portfolio Management Commentary

How did the Fund perform?

For the 12-month period ended July 31, 2020, the Fund’s Institutional Shares returned 1.96%, Investor A Shares returned 1.80%, and Class K Shares returned 2.00%. The benchmark Russell Midcap® Index (the “Index”) returned 2.04% for the same period.

Returns for the Fund’s respective share classes differ from the Index based on individual share-class expenses.

Describe the market environment.

In the third quarter of 2019, trade tensions were a key focus for both domestic and global investors. Markets suffered in early August on the back of President Trump’s promise to impose 10% tariffs on all Chinese imports that were not already subject to 25% tariffs. U.S.-China tensions did ostensibly ease ahead of a new round of trade talks in October. In monetary policy, the Fed lowered the target range for the federal funds rates at both its July and September meetings.

On the macroeconomic front, survey-based U.S. economic indicators continued to soften in the manufacturing and consumer sectors, while hard economic data releases exhibited resilience. In interest rates, the frequently monitored two-year/ten-year Treasury yield spread inverted for the first time since the global financial crisis in August but ended the quarter in positive territory.

In the fourth quarter of 2019, risk appetite was boosted broadly by expectations of a U.S.-China trade deal, strong economic growth, and easy monetary policy. U.S. tariffs on China were originally scheduled to increase on December 15 but were avoided due to persistent negotiations between the United States and China. Additionally, news that the United States did not impose tariffs on European Union auto exports helped support sentiment. On the macroeconomic front, the U.S. services and employment sectors remained buoyant.

In November, 266,000 jobs were added to the economy, revising the third quarter unemployment rate down to 3.5% from 3.7%. Overall, the supportive macroeconomic data and boosted risk appetite drove selling of Treasuries in the quarter. Despite the strength in the U.S. economy, the Fed cut the benchmark federal funds rate to 1.75% in October, marking the third rate cut of the year.

U.S. equities experienced significant losses in the first quarter of 2020. Fears of the coronavirus pandemic and its economic toll continued to drive unprecedented levels of financial market volatility. The Chicago Board Options Exchange Volatility Index, which measures near-term stock market volatility, surged to its highest level since the 2008 financial crisis, and the S&P 500® Index experienced its quickest bear market contraction on record. Economic activity fell to a standstill with the Purchasing Managers Index (an index of the prevailing direction of economic trends in the manufacturing and service sectors) across the globe registering the lowest levels on record while jobless claims surged. In late March, the United States saw a record number of initial unemployment claims as 3.3 million people filed for unemployment benefits while the consensus estimate had been around 1.4 million.

On the policy front, global governments unleashed large stimulus packages to combat the shock on the worldwide economy. The United States passed several fiscal stimulus measures, including a $2 trillion relief bill to send money directly to Americans. Separately, monetary policy moved toward accommodation as the Fed cut the policy rate to 0% and pledged to buy as much government-backed debt as needed to bolster the markets for housing and Treasury bonds. Furthermore, the Fed announced it would buy corporate bonds, including the riskiest investment-grade debt, for the first time in its history.

U.S. equities registered a strong recovery in the second quarter of 2020. U.S. stocks outperformed other regions in the second quarter of 2020, with a sharper recovery from the troughs of late March. This was largely supported by the historic U.S. policy response. The United States delivered coordinated fiscal and monetary support sufficient to offset the estimated initial shock from the coronavirus pandemic and spillovers to the full economy. Toward the end of the second quarter, government measures to contain the coronavirus had been gradually lifted in many states, boosting economic activity and employment.

Describe recent portfolio activity.

During the period, as changes were made to the composition of the Index, the Fund purchased and sold securities to maintain its objective of replicating the risks and return of the Index.

Describe portfolio positioning at period end.

The Fund remains positioned to match the risk characteristics of the Index, irrespective of the market’s future direction.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

 

 

4    2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Fund Summary  as of July 31, 2020 (continued)    iShares Russell Mid-Cap Index Fund

 

TOTAL RETURN BASED ON A $10,000 INVESTMENT

 

LOGO

 

(a) 

Commencement of operations.

(b) 

Assuming transaction costs and other operating expenses, including investment advisory fees, if any.

(c) 

The Fund generally invests at least 90% of its assets, plus the amount of any borrowing for investment purposes, in securities of the Russell Midcap® Index.

(d) 

A float-adjusted capitalization-weighted index that measures the performance of the mid-cap segment of the U.S. equities universe. It is a subset of the Russell 1000® Index including approximately 800 of the smallest issuers based on a combination of their market cap and current index membership.

Performance Summary for the Period Ended July 31, 2020

 

                Average Annual
Total Returns (a)		  
     6-Month
Total Returns		            1 Year     5 Year     Since
Inception (b)		  

Institutional

     (3.01 )%        1.96 %      7.76 %      7.35 % 

Investor A

     (3.15 )        1.80       7.50       7.09  

Class K

     (2.99 )        2.00       7.82       7.41  

Russell Midcap® Index

     (3.01 )              2.04       7.83       7.36  

 

  (a) 

See “About Fund Performance” on page 12 for a detailed description of share classes, including any related fees, and how performance was calculated for certain share classes.

 
  (b) 

The Fund commenced operations on May 13, 2015.

 

Past performance is not indicative of future results.

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Expense Example

 

    Actual           Hypothetical (b)           
     Beginning
Account Value
(02/01/20)		      Ending
Account Value
(07/31/20)		      Expenses
Paid During
the Period (a)		            Beginning
Account Value
(02/01/20)		      Ending
Account Value
(07/31/20)		      Expenses
Paid During
the Period (a)		        Annualized
Expense
Ratio		  

Institutional

   $ 1,000.00      $ 969.90      $ 0.49       $ 1,000.00      $ 1,024.37      $ 0.50          0.10 % 

Investor A

     1,000.00        968.50        1.76         1,000.00        1,023.07        1.81          0.36  

Class K

     1,000.00        970.10        0.34               1,000.00        1,024.51        0.35          0.07  

 

  (a) 

For each class of the Fund, expenses are equal to the annualized net expense ratio for the class, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period shown).

 
  (b) 

Hypothetical 5% annual return before expenses is calculated by prorating the number of days in the most recent fiscal half year divided by 366.

 

See “Disclosure of Expenses” on page 12 for further information on how expenses were calculated.

 

 

FUND SUMMARY      5  

Fund Summary  as of July 31, 2020    iShares Russell Small/Mid-Cap Index Fund

 

Investment Objective

iShares Russell Small/Mid-Cap Index Fund’s (the “Fund”) investment objective is to seek to track the performance of the small to mid-cap segment of the U.S. equity universe.

Portfolio Management Commentary

How did the Fund perform?

For the 12-month period ended July 31, 2020, the Fund’s Institutional Shares returned (1.68)%, Investor A Shares returned (1.90)%, and Class K Shares returned (1.64)%. The benchmark Russell 2500TM Index (the “Index”) returned (1.92)% for the same period.

Returns for the Fund’s respective share classes differ from the Index based on individual share-class expenses.

Describe the market environment.

In the third quarter of 2019, trade tensions were a key focus for both domestic and global investors. Markets suffered in early August on the back of President Trump’s promise to impose 10% tariffs on all Chinese imports that were not already subject to 25% tariffs. U.S.-China tensions did ostensibly ease ahead of a new round of trade talks in October. In monetary policy, the Fed lowered the target range for the federal funds rates at both its July and September meetings.

On the macroeconomic front, survey-based U.S. economic indicators continued to soften in the manufacturing and consumer sectors, while hard economic data releases exhibited resilience. In interest rates, the frequently monitored two-year/ten-year Treasury yield spread inverted for the first time since the global financial crisis in August but ended the quarter in positive territory.

In the fourth quarter of 2019, risk appetite was boosted broadly by expectations of a U.S.-China trade deal, strong economic growth, and easy monetary policy. U.S. tariffs on China were originally scheduled to increase on December 15 but were avoided due to persistent negotiations between the United States and China. Additionally, news that the United States did not impose tariffs on European Union auto exports helped support sentiment. On the macroeconomic front, the U.S. services and employment sectors remained buoyant.

In November, 266,000 jobs were added to the economy, revising the third quarter unemployment rate down to 3.5% from 3.7%. Overall, the supportive macroeconomic data and boosted risk appetite drove selling of Treasuries in the quarter. Despite the strength in the U.S. economy, the Fed cut the benchmark federal funds rate to 1.75% in October, marking the third rate cut of the year.

U.S. equities experienced significant losses in the first quarter of 2020. Fears of the coronavirus pandemic and its economic toll continued to drive unprecedented levels of financial market volatility. The Chicago Board Options Exchange Volatility Index, which measures near-term stock market volatility, surged to its highest level since the 2008 financial crisis, and the S&P 500® Index experienced its quickest bear market contraction on record. Economic activity fell to a standstill with the Purchasing Managers Index (an index of the prevailing direction of economic trends in the manufacturing and service sectors) across the globe registering the lowest levels on record while jobless claims surged. In late March, the United States saw a record number of initial unemployment claims as 3.3 million people filed for unemployment benefits while the consensus estimate had been around 1.4 million.

On the policy front, global governments unleashed large stimulus packages to combat the shock on the worldwide economy. The United States passed several fiscal stimulus measures, including a $2 trillion relief bill to send money directly to Americans. Separately, monetary policy moved toward accommodation as the Fed cut the policy rate to 0% and pledged to buy as much government-backed debt as needed to bolster the markets for housing and Treasury bonds. Furthermore, the Fed announced it would buy corporate bonds, including the riskiest investment-grade debt, for the first time in its history.

U.S. equities registered a strong recovery in the second quarter of 2020. U.S. stocks outperformed other regions in the second quarter of 2020, with a sharper recovery from the troughs of late March. This was largely supported by the historic U.S. policy response. The United States delivered coordinated fiscal and monetary support sufficient to offset the estimated initial shock from the coronavirus pandemic and spillovers to the full economy. Toward the end of the second quarter, government measures to contain the coronavirus had been gradually lifted in many states, boosting economic activity and employment.

Describe recent portfolio activity.

During the period, the Fund held derivatives in the form of exchange-traded futures used for cash equitization purposes. The Fund’s use of derivatives had a negative impact on performance.

During the period, as changes were made to the composition of the Index, the Fund purchased and sold securities to maintain its objective of replicating the risks and return of the Index.

Describe portfolio positioning at period end.

The Fund remains positioned to match the risk characteristics of the Index, irrespective of the market’s future direction.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

 

 

6    2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Fund Summary  as of July 31, 2020 (continued)    iShares Russell Small/Mid-Cap Index Fund

 

TOTAL RETURN BASED ON A $10,000 INVESTMENT

 

LOGO

 

(a) 

Commencement of operations.

(b) 

Assuming transaction costs and other operating expenses, including investment advisory fees, if any.

(c) 

The Fund generally invests at least 90% of its assets, plus the amount of any borrowing for investment purposes, in securities of the Russell 2500™ Index.

(d) 

An index that measures the performance of the small to mid-cap segment of the U.S. equity universe, commonly referred to as “smid” cap. The Russell 2500™ Index is a subset of the Russell 3000® Index. It includes approximately 2500 of the smallest securities based on a combination of their market cap and current index membership.

Performance Summary for the Period Ended July 31, 2020

 

                Average Annual
Total Returns (a)		  
     6-Month
Total Returns		            1 Year     Since
Inception (b)		  

Institutional

     (5.30 )%        (1.68 )%      6.69 % 

Investor A

     (5.41 )        (1.90 )      6.45  

Class K

     (5.29 )        (1.64 )      6.74  

Russell 2500™ Index

     (5.59 )              (1.92 )      6.66  

 

  (a) 

See “About Fund Performance” on page 12 for a detailed description of share classes, including any related fees.

 
  (b) 

The Fund commenced operations on August 13, 2015.

 

Past performance is not indicative of future results.

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Expense Example

 

    Actual           Hypothetical (b)           
     Beginning
Account Value
(02/01/20)		      Ending
Account Value
(07/31/20)		      Expenses
Paid During
the Period (a)		            Beginning
Account Value
(02/01/20)		      Ending
Account Value
(07/31/20)		      Expenses
Paid During
the Period (a)		        Annualized
Expense
Ratio		  

Institutional

   $ 1,000.00      $ 947.00      $ 0.58       $ 1,000.00      $ 1,024.27      $ 0.60          0.12 % 

Investor A

     1,000.00        945.90        1.69         1,000.00        1,023.12        1.76          0.35  

Class K

     1,000.00        947.10        0.34               1,000.00        1,024.51        0.35          0.07  

 

  (a) 

For each class of the Fund, expenses are equal to the annualized net expense ratio for the class, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period shown).

 
  (b) 

Hypothetical 5% annual return before expenses is calculated by prorating the number of days in the most recent fiscal half year divided by 366.

 

See “Disclosure of Expenses” on page 12 for further information on how expenses were calculated.

 

 

FUND SUMMARY      7  

Fund Summary  as of July 31, 2020    iShares Total U.S. Stock Market Index Fund

 

Investment Objective

iShares Total U.S. Stock Market Index Fund’s (the “Fund”) investment objective is to seek to track the investment results of a broad-based index composed of U.S. equities.

Portfolio Management Commentary

How did the Fund perform?

For the 12-month period ended July 31, 2020, the Fund’s Institutional Shares returned 10.79%, Investor A Shares returned 10.56%, and Class K Shares returned 10.84%. The benchmark Russell 3000® Index (the “Index”) returned 10.93% for the same period.

Returns for the Fund’s respective share classes differ from the Index based on individual share-class expenses.

Describe the market environment.

In the third quarter of 2019, trade tensions were a key focus for both domestic and global investors. Markets suffered in early August on the back of President Trump’s promise to impose 10% tariffs on all Chinese imports that were not already subject to 25% tariffs. U.S.-China tensions did ostensibly ease ahead of a new round of trade talks in October. In monetary policy, the Fed lowered the target range for the federal funds rates at both its July and September meetings.

On the macroeconomic front, survey-based U.S. economic indicators continued to soften in the manufacturing and consumer sectors, while hard economic data releases exhibited resilience. In interest rates, the frequently monitored two-year/ten-year Treasury yield spread inverted for the first time since the global financial crisis in August but ended the quarter in positive territory.

In the fourth quarter of 2019, risk appetite was boosted broadly by expectations of a U.S.-China trade deal, strong economic growth, and easy monetary policy. U.S. tariffs on China were originally scheduled to increase on December 15 but were avoided due to persistent negotiations between the United States and China. Additionally, news that the United States did not impose tariffs on European Union auto exports helped support sentiment. On the macroeconomic front, the U.S. services and employment sectors remained buoyant.

In November, 266,000 jobs were added to the economy, revising the third quarter unemployment rate down to 3.5% from 3.7%. Overall, the supportive macroeconomic data and boosted risk appetite drove selling of Treasuries in the quarter. Despite the strength in the U.S. economy, the Fed cut the benchmark federal funds rate to 1.75% in October, marking the third rate cut of the year.

U.S. equities experienced significant losses in the first quarter of 2020. Fears of the coronavirus pandemic and its economic toll continued to drive unprecedented levels of financial market volatility. The Chicago Board Options Exchange Volatility Index, which measures near-term stock market volatility, surged to its highest level since the 2008 financial crisis, and the S&P 500® Index experienced its quickest bear market contraction on record. Economic activity fell to a standstill with the Purchasing Managers Index (an index of the prevailing direction of economic trends in the manufacturing and service sectors) across the globe registering the lowest levels on record while jobless claims surged. In late March, the United States saw a record number of initial unemployment claims as 3.3 million people filed for unemployment benefits while the consensus estimate had been around 1.4 million.

On the policy front, global governments unleashed large stimulus packages to combat the shock on the worldwide economy. The United States passed several fiscal stimulus measures, including a $2 trillion relief bill to send money directly to Americans. Separately, monetary policy moved toward accommodation as the Fed cut the policy rate to 0% and pledged to buy as much government-backed debt as needed to bolster the markets for housing and Treasury bonds. Furthermore, the Fed announced it would buy corporate bonds, including the riskiest investment-grade debt, for the first time in its history.

U.S. equities registered a strong recovery in the second quarter of 2020. U.S. stocks outperformed other regions in the second quarter of 2020, with a sharper recovery from the troughs of late March. This was largely supported by the historic U.S. policy response. The United States delivered coordinated fiscal and monetary support sufficient to offset the estimated initial shock from the coronavirus pandemic and spillovers to the full economy. Toward the end of the second quarter, government measures to contain the coronavirus had been gradually lifted in many states, boosting economic activity and employment.

Describe recent portfolio activity.

During the period, as changes were made to the composition of the Index, the Fund purchased and sold securities to maintain its objective of replicating the risks and return of the Index.

Describe portfolio positioning at period end.

The Fund remains positioned to match the risk characteristics of the Index, irrespective of the market’s future direction.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

 

 

8    2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Fund Summary  as of July 31, 2020 (continued)    iShares Total U.S. Stock Market Index Fund

 

TOTAL RETURN BASED ON A $10,000 INVESTMENT

 

LOGO

 

(a) 

Commencement of operations.

(b) 

Assuming transaction costs and other operating expenses, including investment advisory fees, if any.

(c) 

The Fund generally invests at least 90% of its assets, plus the amount of any borrowing for investment purposes, in securities of the Russell 3000® Index.

(d) 

A float-adjusted, market capitalization-weighted index of the 3,000 largest U.S. companies based on total market capitalization that represents about 98% of the investable U.S. equity market.

Performance Summary for the Period Ended July 31, 2020

 

                 Average Annual
Total Returns (a)		  
  6-Month
Total Returns		            1 Year     Since
Inception (b)		  

Institutional

     2.00 %        10.79 %      11.15 % 

Investor A

     1.89         10.56       10.88  

Class K

     2.03         10.84       11.19  

Russell 3000® Index

     2.12               10.93       11.20  

 

  (a) 

See “About Fund Performance” on page 12 for a detailed description of share classes, including any related fees.

 
  (b) 

The Fund commenced operations on August 13, 2015.

 

Past performance is not indicative of future results.

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Expense Example

 

    Actual           Hypothetical (b)           
     Beginning
Account Value
(02/01/20)		      Ending
Account Value
(07/31/20)		      Expenses
Paid During
the Period (a)		            Beginning
Account Value
(02/01/20)		      Ending
Account Value
(07/31/20)		      Expenses
Paid During
the Period (a)		        Annualized
Expense
Ratio		  

Institutional

   $ 1,000.00      $ 1,020.00      $ 0.40       $ 1,000.00      $ 1,024.47      $ 0.40          0.08 % 

Investor A

     1,000.00        1,018.90        1.51         1,000.00        1,023.37        1.51          0.30  

Class K

     1,000.00        1,020.30        0.15               1,000.00        1,024.71        0.15          0.03  

 

  (a) 

For each class of the Fund, expenses are equal to the annualized net expense ratio for the class, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period shown).

 
  (b) 

Hypothetical 5% annual return before expenses is calculated by prorating the number of days in the most recent fiscal half year divided by 366.

 

See “Disclosure of Expenses” on page 12 for further information on how expenses were calculated.

 

 

FUND SUMMARY      9  

Portfolio Information  as of July 31, 2020

 

iShares Russell Mid-Cap Index Fund*

 

SECTOR ALLOCATION

 

Sector  

Percent of

Net Assets

  

Information Technology

     19 % 

Industrials

     15  

Health Care

     13  

Financials

     11  

Consumer Discretionary

     11  

Real Estate

     7  

Utilities

     6  

Materials

     5  

Consumer Staples

     5  

Communication Services

     4  

Short-Term Securities

     3  

Energy

     3  

Investment Companies

     — (a) 

Liabilities in Excess of Other Assets

     (2 ) 

 

  (a) 

Represents less than 1% of Net Assets.

 
  *

Ten largest holdings have not been included as the Fund does not hold any position in excess of 1% of Net Assets.

 

For Fund compliance purposes, the Fund’s sector classifications refer to one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

 

 

iShares Russell Small/Mid-Cap Index Fund*

 

SECTOR ALLOCATION

 

Sector  

Percent of

Net Assets

  

Information Technology

     17 % 

Health Care

     16  

Industrials

     15  

Financials

     14  

Consumer Discretionary

     12  

Short-Term Securities

     10  

Real Estate

     8  

Materials

     5  

Consumer Staples

     3  

Utilities

     3  

Communication Services

     3  

Energy

     2  

Investment Companies

     1  

Liabilities in Excess of Other Assets

     (9 ) 

 

  *

Ten largest holdings have not been included as the Fund does not hold any position in excess of 1% of Net Assets.

 

For Fund compliance purposes, the Fund’s sector classifications refer to one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

 

 

 

10    2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Portfolio Information  as of July 31, 2020 (continued)

 

iShares Total U.S. Stock Market Index Fund

 

TEN LARGEST HOLDINGS

 

Security   Percent of
Net Assets		  

Apple, Inc.

     5 % 

Microsoft Corp.

     5  

Amazon.com, Inc.

     4  

Facebook, Inc.

     2  

Alphabet, Inc.

     1  

Alphabet, Inc.

     1  

Johnson & Johnson

     1  

Berkshire Hathaway, Inc.

     1  

Visa, Inc.

     1  

Procter & Gamble Co.

     1  

SECTOR ALLOCATION

 

Sector   Percent of
Net Assets		  

Information Technology

     26 % 

Health Care

     14  

Consumer Discretionary

     12  

Financials

     10  

Communication Services

     10  

Industrials

     9  

Consumer Staples

     6  

Real Estate

     3  

Utilities

     3  

Materials

     3  

Energy

     2  

Short-Term Securities

     2  

Investment Companies

     — (a) 

 

  (a) 

Represents less than 1% of Net Assets.

 

For Fund compliance purposes, the Fund’s sector classifications refer to one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

 

 

 

PORTFOLIO INFORMATION      11  

About Fund Performance

 

Institutional and Class K Shares are not subject to any sales charge. These shares bear no ongoing distribution or service fees and are available only to certain eligible investors.

Investor A Shares are not subject to any sales charge and bear no ongoing distribution fee. These shares are subject to an ongoing service fee of 0.25% per year. These shares are generally available through financial intermediaries. Investor A Shares of iShares Russell Mid-Cap Index Fund performance shown prior to the Investor A Shares inception date of November 30, 2015 is that of Institutional Shares (which have no distribution or service fees) and was restated to reflect Investor A Shares fees.

Performance information reflects past performance and does not guarantee future results. Current performance may be lower or higher than the performance data quoted. Refer to blackrock.com to obtain performance data current to the most recent month-end. Performance results do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Figures shown in the performance tables on the previous pages assume reinvestment of all distributions, if any, at net asset value (“NAV”) on the ex-dividend date or payable date, as applicable. Investment return and principal value of shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Distributions paid to each class of shares will vary because of the different levels of service, distribution and transfer agency fees applicable to each class, which are deducted from the income available to be paid to shareholders.

BlackRock Advisors, LLC (the “Manager”), each Fund’s investment adviser, has contractually agreed to waive and/or reimburse a portion of each Fund’s expenses. Without such waiver and/or reimbursement, each Fund’s performance would have been lower. With respect to each Fund’s contractual waivers, the Manager is under no obligation to continue waiving and/or reimbursing its fees after the applicable termination date of such agreement. See Note 6 of the Notes to Financial Statements for additional information on waivers and/or reimbursements.

Disclosure of Expenses

Shareholders of the Funds may incur the following charges: (a) transactional expenses; and (b) operating expenses, including investment advisory fees, service fees, including 12b-1 fees, acquired fund fees and expenses and other fund expenses. The expense examples shown on the previous pages (which are based on a hypothetical investment of $1,000 invested on February 1, 2020 and held through July 31, 2020) 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 mutual funds.

The expense examples provide information about actual account values and actual expenses. 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 corresponding to their Fund and share class 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 these Funds and other funds, compare the 5% hypothetical examples with the 5% hypothetical examples that appear in shareholder reports of other funds.

The expenses shown in the expense examples are intended to highlight shareholders’ ongoing costs only and do not reflect transactional expenses, such as sales charges, if any. 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.

Derivative Financial Instruments

The Funds may invest in various derivative financial instruments. These instruments are used to obtain exposure to a security, commodity, index, market, and/or other assets without owning or taking physical custody of securities, commodities and/or other referenced assets or to manage market, equity, credit, interest rate, foreign currency exchange rate, commodity and/or other risks. Derivative financial instruments may give rise to a form of economic leverage and involve risks, including the imperfect correlation between the value of a derivative financial instrument and the underlying asset, possible default of the counterparty to the transaction or illiquidity of the instrument. The Funds’ successful use of a derivative financial instrument depends on the investment adviser’s ability to predict pertinent market movements accurately, which cannot be assured. The use of these instruments may result in losses greater than if they had not been used, may limit the amount of appreciation a Fund can realize on an investment and/or may result in lower distributions paid to shareholders. The Funds’ investments in these instruments, if any, are discussed in detail in the Notes to Financial Statements.

 

 

12    2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

July 31, 2020

   

iShares Russell Mid-Cap Index Fund

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks — 99.4%

 

Aerospace & Defense — 1.1%  

Axon Enterprise, Inc.(a)

     9,642     $ 801,540  

Curtiss-Wright Corp.

     6,495       578,834  

HEICO Corp.

     6,895       662,747  

HEICO Corp., Class A

     12,021       920,208  

Hexcel Corp.

     12,988       484,452  

Howmet Aerospace, Inc.

     60,922       900,427  

Huntington Ingalls Industries, Inc.

     6,122       1,063,453  

Mercury Systems, Inc.(a)

     8,459       654,980  

Spirit AeroSystems Holdings, Inc., Class A

     16,254       318,091  

Teledyne Technologies, Inc.(a)

     5,616       1,722,427  

Textron, Inc.

     35,255       1,231,810  

TransDigm Group, Inc.

     8,100       3,495,798  

Virgin Galactic Holdings, Inc.(a)(b)

     9,256       207,797  
   

 

 

  
    13,042,564  
Air Freight & Logistics — 0.4%  

C.H. Robinson Worldwide, Inc.

     20,547       1,925,665  

Expeditors International of Washington, Inc.

     25,734       2,174,780  

XPO Logistics, Inc.(a)

     14,039       1,053,206  
   

 

 

  
    5,153,651  
Airlines — 0.7%  

Alaska Air Group, Inc.

     18,591       640,274  

American Airlines Group, Inc.(b)

     77,152       857,930  

Copa Holdings SA, Class A

     4,947       205,004  

Delta Air Lines, Inc.

     98,685       2,464,165  

JetBlue Airways Corp.(a)(b)

     41,767       431,871  

Southwest Airlines Co.

     91,254       2,818,836  

United Airlines Holdings, Inc.(a)

     45,072       1,414,359  
   

 

 

  
    8,832,439  
Auto Components — 0.5%  

Aptiv PLC

     41,541       3,229,813  

BorgWarner, Inc.

     32,082       1,174,201  

Gentex Corp.

     38,152       1,029,722  

Lear Corp.

     9,339       1,030,839  
   

 

 

  
    6,464,575  
Automobiles — 0.5%  

Ford Motor Co.

     605,888       4,004,920  

Harley-Davidson, Inc.

     23,706       617,067  

Thor Industries, Inc.(b)

     8,592       979,402  
   

 

 

  
    5,601,389  
Banks — 2.5%  

Associated Banc-Corp

     24,014       308,340  

Bank of Hawaii Corp.

     6,208       351,559  

Bank OZK

     19,057       458,321  

BOK Financial Corp.

     4,983       277,553  

Citizens Financial Group, Inc.

     66,072       1,639,246  

Comerica, Inc.

     21,692       835,576  

Commerce Bancshares, Inc.

     15,650       896,119  

Cullen/Frost Bankers, Inc.

     8,672       624,904  

East West Bancorp, Inc.

     22,035       763,733  

Fifth Third Bancorp

     110,277       2,190,101  

First Citizens BancShares, Inc., Class A

     1,026       436,943  

First Hawaiian, Inc.

     19,965       346,992  

First Horizon National Corp.

     85,088       788,766  

First Republic Bank

     26,406       2,970,147  

FNB Corp.

     50,557       374,627  

Huntington Bancshares, Inc.

     156,585       1,451,543  

KeyCorp

     150,621       1,808,958  

M&T Bank Corp.

     19,852       2,103,319  

PacWest Bancorp

     17,739       324,180  

People’s United Financial, Inc.

     65,173       703,217  
Security   Shares     Value  
Banks (continued)  

Pinnacle Financial Partners, Inc.

     11,368     $ 450,400  

Popular, Inc.

     13,601       504,733  

Prosperity Bancshares, Inc.

     13,794       766,395  

Regions Financial Corp.

     148,966       1,617,771  

Signature Bank

     8,035       823,828  

Sterling Bancorp

     30,403       342,034  

SVB Financial Group(a)

     7,969       1,787,208  

Synovus Financial Corp.

     21,838       440,036  

TCF Financial Corp.

     23,383       642,799  

Umpqua Holdings Corp.

     34,376       372,979  

Webster Financial Corp.

     13,606       371,036  

Western Alliance Bancorp

     14,821       532,815  

Wintrust Financial Corp.

     8,848       378,694  

Zions Bancorp. NA

     25,109       815,289  
   

 

 

  
    29,500,161  
Beverages — 0.4%  

Boston Beer Co., Inc., Class A(a)

     1,335       1,081,937  

Brown-Forman Corp., Class A

     7,038       445,083  

Brown-Forman Corp., Class B

     27,872       1,932,645  

Molson Coors Beverage Co., Class B

     27,493       1,031,537  
   

 

 

  
    4,491,202  
Biotechnology — 2.7%  

ACADIA Pharmaceuticals, Inc.(a)

     17,064       709,350  

Acceleron Pharma, Inc.(a)

     7,165       710,553  

Agios Pharmaceuticals, Inc.(a)

     9,369       424,603  

Alexion Pharmaceuticals, Inc.(a)

     33,072       3,389,549  

Alkermes PLC(a)

     24,323       438,057  

Alnylam Pharmaceuticals, Inc.(a)

     17,718       2,582,576  

BioMarin Pharmaceutical, Inc.(a)

     28,002       3,354,920  

Bluebird Bio, Inc.(a)

     10,038       609,307  

Exact Sciences Corp.(a)

     23,046       2,183,609  

Exelixis, Inc.(a)

     47,141       1,088,486  

Global Blood Therapeutics, Inc.(a)(b)

     9,114       615,013  

Immunomedics, Inc.(a)(b)

     32,165       1,358,328  

Incyte Corp.(a)

     28,236       2,788,587  

Ionis Pharmaceuticals, Inc.(a)

     20,212       1,163,403  

Iovance Biotherapeutics, Inc.(a)

     21,099       613,348  

Moderna, Inc.(a)(b)

     41,655       3,086,635  

Neurocrine Biosciences, Inc.(a)

     14,259       1,716,213  

Sage Therapeutics, Inc.(a)(b)

     7,907       360,322  

Sarepta Therapeutics, Inc.(a)

     11,538       1,771,314  

Seattle Genetics, Inc.(a)

     18,867       3,137,016  

United Therapeutics Corp.(a)(b)

     6,722       749,301  
   

 

 

  
    32,850,490  
Building Products — 1.9%  

Allegion PLC

     14,283       1,420,587  

AO Smith Corp.

     20,731       997,990  

Armstrong World Industries, Inc.

     7,394       526,749  

Carrier Global Corp.

     134,303       3,658,414  

Fortune Brands Home & Security, Inc.

     21,349       1,633,199  

Johnson Controls International PLC

     115,657       4,450,481  

Lennox International, Inc.

     5,389       1,445,006  

Masco Corp.

     40,745       2,328,984  

Owens Corning

     16,571       1,002,048  

Trane Technologies PLC

     37,049       4,144,672  

Trex Co., Inc.(a)

     8,981       1,251,323  
   

 

 

  
    22,859,453  
Capital Markets — 3.5%  

Affiliated Managers Group, Inc.

     7,357       506,088  

Ameriprise Financial, Inc.

     19,071       2,929,878  

Apollo Global Management, Inc.

     26,451       1,298,744  

Ares Management Corp., Class A

     15,031       600,338  

Carlyle Group, Inc.

     17,699       503,891  
 

 

 

SCHEDULES OF INVESTMENTS

   13

Schedule of Investments  (continued)

July 31, 2020

   

iShares Russell Mid-Cap Index Fund

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Capital Markets (continued)  

Cboe Global Markets, Inc.

     16,971     $ 1,488,357  

E*Trade Financial Corp.

     34,299       1,741,360  

Eaton Vance Corp.

     16,907       611,019  

Evercore, Inc., Class A

     6,113       338,049  

Franklin Resources, Inc.

     42,299       890,394  

Invesco Ltd.

     58,420       586,537  

KKR & Co., Inc., Class A

     82,583       2,920,961  

Lazard Ltd., Class A

     15,888       465,836  

Legg Mason, Inc.

     13,017       650,720  

LPL Financial Holdings, Inc.

     12,168       961,515  

MarketAxess Holdings, Inc.

     5,717       2,953,974  

MSCI, Inc.

     12,837       4,826,455  

Nasdaq, Inc.

     17,743       2,329,833  

Northern Trust Corp.

     29,783       2,333,498  

Raymond James Financial, Inc.

     19,030       1,322,204  

SEI Investments Co.

     17,878       935,556  

State Street Corp.

     54,594       3,482,551  

T. Rowe Price Group, Inc.

     35,090       4,845,929  

TD Ameritrade Holding Corp.

     40,356       1,448,377  

Tradeweb Markets, Inc., Class A

     12,739       688,798  

Virtu Financial, Inc., Class A

     9,629       238,799  
   

 

 

  
    41,899,661  
Chemicals — 2.3%  

Albemarle Corp.(b)

     16,361       1,349,128  

Ashland Global Holdings, Inc.

     8,474       639,618  

Axalta Coating Systems Ltd.(a)

     32,704       726,029  

Cabot Corp.

     8,631       314,859  

Celanese Corp.

     18,264       1,775,261  

CF Industries Holdings, Inc.

     33,340       1,044,542  

Chemours Co.

     25,312       469,031  

Corteva, Inc.(a)

     116,341       3,322,699  

Eastman Chemical Co.

     21,025       1,569,096  

Element Solutions, Inc.(a)

     33,626       365,178  

FMC Corp.

     20,075       2,128,954  

Huntsman Corp.

     31,279       578,661  

International Flavors & Fragrances, Inc.

     16,586       2,089,007  

LyondellBasell Industries NV, Class A

     39,711       2,482,732  

Mosaic Co.

     53,537       721,143  

NewMarket Corp.

     1,069       400,672  

Olin Corp.

     22,192       249,438  

PPG Industries, Inc.

     36,316       3,909,417  

RPM International, Inc.

     20,164       1,645,181  

Scotts Miracle-Gro Co.

     6,236       988,843  

Valvoline, Inc.

     28,806       591,099  

Westlake Chemical Corp.

     5,249       286,070  

WR Grace & Co.

     8,705       401,562  
   

 

 

  
    28,048,220  
Commercial Services & Supplies — 1.2%  

ADT, Inc.

     17,398       149,797  

Cintas Corp.

     13,688       4,131,997  

Clean Harbors, Inc.(a)

     7,934       472,866  

Copart, Inc.(a)

     31,500       2,937,375  

IAA, Inc.(a)

     21,000       910,350  

MSA Safety, Inc.

     5,541       656,775  

Republic Services, Inc.

     32,551       2,840,075  

Rollins, Inc.

     22,912       1,200,589  

Stericycle, Inc.(a)

     14,130       853,946  
   

 

 

  
    14,153,770  
Communications Equipment — 1.0%  

Arista Networks, Inc.(a)

     9,100       2,363,907  

Ciena Corp.(a)

     23,692       1,409,911  

CommScope Holding Co., Inc.(a)

     30,259       280,804  

EchoStar Corp., Class A(a)(b)

     7,570       206,661  
Security   Shares     Value  
Communications Equipment (continued)  

F5 Networks, Inc.(a)

     9,448     $ 1,283,983  

Juniper Networks, Inc.

     51,100       1,296,918  

Lumentum Holdings, Inc.(a)

     11,598       1,076,642  

Motorola Solutions, Inc.

     26,375       3,687,225  

Ubiquiti, Inc.

     1,325       245,522  

ViaSat, Inc.(a)

     8,807       334,314  
   

 

 

  
    12,185,887  
Construction & Engineering — 0.3%  

AECOM(a)

     23,734       858,933  

Jacobs Engineering Group, Inc.

     19,412       1,656,814  

Quanta Services, Inc.

     21,344       853,120  
   

 

 

  
    3,368,867  
Construction Materials — 0.4%  

Eagle Materials, Inc.

     6,358       510,102  

Martin Marietta Materials, Inc.

     9,636       1,996,387  

Vulcan Materials Co.

     20,493       2,406,288  
   

 

 

  
    4,912,777  
Consumer Finance — 0.6%  

Ally Financial, Inc.

     58,012       1,166,041  

Credit Acceptance Corp.(a)(b)

     1,566       732,794  

Discover Financial Services

     47,520       2,348,914  

OneMain Holdings, Inc.

     10,135       290,875  

Santander Consumer USA Holdings, Inc.

     11,989       220,118  

SLM Corp.

     58,611       396,796  

Synchrony Financial

     90,390       2,000,331  
   

 

 

  
    7,155,869  
Containers & Packaging — 1.6%  

Amcor PLC(a)

     248,979       2,564,484  

AptarGroup, Inc.

     9,956       1,146,931  

Ardagh Group SA

     2,789       37,958  

Avery Dennison Corp.

     12,960       1,468,886  

Ball Corp.

     49,479       3,643,139  

Berry Global Group, Inc.(a)

     20,570       1,028,294  

Crown Holdings, Inc.(a)

     20,033       1,433,962  

Graphic Packaging Holding Co.

     43,579       607,491  

International Paper Co.

     60,972       2,121,216  

Packaging Corp. of America

     14,547       1,398,258  

Sealed Air Corp.

     24,089       859,496  

Silgan Holdings, Inc.

     12,126       463,819  

Sonoco Products Co.

     15,482       801,039  

Westrock Co.

     39,770       1,068,222  
   

 

 

  
    18,643,195  
Distributors — 0.4%  

Genuine Parts Co.

     21,846       1,969,417  

LKQ Corp.(a)

     46,832       1,320,194  

Pool Corp.

     6,010       1,903,367  
   

 

 

  
    5,192,978  
Diversified Consumer Services — 0.6%  

2U, Inc.(a)

     9,530       448,815  

Bright Horizons Family Solutions, Inc.(a)

     8,939       958,618  

Chegg, Inc.(a)

     18,710       1,514,949  

frontdoor, Inc.(a)

     13,221       555,216  

Graham Holdings Co., Class B

     648       258,144  

Grand Canyon Education, Inc.(a)

     7,266       644,785  

H&R Block, Inc.

     29,905       433,622  

Service Corp. International

     26,988       1,170,200  

ServiceMaster Global Holdings, Inc.(a)

     20,607       842,620  
   

 

 

  
    6,826,969  
Diversified Financial Services — 0.5%  

Equitable Holdings, Inc.

     63,029       1,289,573  

FactSet Research Systems, Inc.

     5,757       1,993,649  
 

 

 

14  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (continued)

July 31, 2020

   

iShares Russell Mid-Cap Index Fund

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Diversified Financial Services (continued)  

Interactive Brokers Group, Inc., Class A

     11,068     $ 548,973  

Jefferies Financial Group, Inc.

     35,030       567,486  

Morningstar, Inc.

     3,216       540,417  

Voya Financial, Inc.

     19,677       972,044  
   

 

 

  
    5,912,142  
Diversified Telecommunication Services — 0.1%  

CenturyLink, Inc.

     169,620       1,636,833  
   

 

 

  
Electric Utilities — 2.7%  

Alliant Energy Corp.

     37,961       2,044,200  

Avangrid, Inc.

     8,766       436,459  

Edison International

     55,337       3,080,611  

Entergy Corp.

     31,152       3,275,010  

Evergy, Inc.

     35,094       2,275,144  

Eversource Energy

     52,163       4,698,321  

FirstEnergy Corp.

     84,051       2,437,479  

Hawaiian Electric Industries, Inc.

     16,538       599,668  

IDACORP, Inc.

     7,964       742,643  

OGE Energy Corp.

     31,551       1,038,028  

PG&E Corp.(a)

     149,848       1,401,079  

Pinnacle West Capital Corp.

     17,711       1,471,430  

PPL Corp.

     119,506       3,181,249  

Xcel Energy, Inc.

     81,523       5,628,348  
   

 

 

  
    32,309,669  
Electrical Equipment — 1.1%  

Acuity Brands, Inc.

     6,058       600,348  

AMETEK, Inc.

     35,548       3,314,851  

Generac Holdings, Inc.(a)

     9,385       1,478,888  

GrafTech International Ltd.

     8,688       52,736  

Hubbell, Inc.

     8,374       1,130,239  

nVent Electric PLC

     23,627       429,066  

Regal-Beloit Corp.

     6,275       577,112  

Rockwell Automation, Inc.

     17,978       3,921,721  

Sensata Technologies Holding PLC(a)

     24,061       913,837  

Vertiv Holdings Co.(a)

     30,497       442,206  
   

 

 

  
    12,861,004  
Electronic Equipment, Instruments & Components — 2.3%  

Amphenol Corp., Class A

     44,777       4,735,616  

Arrow Electronics, Inc.(a)

     12,170       871,615  

Avnet, Inc.

     14,877       397,514  

CDW Corp.

     21,997       2,557,151  

Cognex Corp.

     25,537       1,707,659  

Coherent, Inc.(a)

     3,744       519,780  

Corning, Inc.

     116,284       3,604,804  

Dolby Laboratories, Inc., Class A

     9,767       679,783  

FLIR Systems, Inc.

     20,387       849,322  

IPG Photonics Corp.(a)(b)

     5,491       982,944  

Jabil, Inc.

     22,903       798,399  

Keysight Technologies, Inc.(a)

     29,007       2,897,509  

Littelfuse, Inc.

     3,649       648,245  

National Instruments Corp.

     19,983       709,397  

SYNNEX Corp.

     6,437       802,951  

Trimble, Inc.(a)

     38,663       1,720,890  

Universal Display Corp.

     6,654       1,160,790  

Zebra Technologies Corp., Class A(a)

     8,137       2,284,463  
   

 

 

  
    27,928,832  
Energy Equipment & Services — 0.4%  

Baker Hughes Co.

     101,772       1,576,448  

Halliburton Co.

     135,805       1,946,086  

Helmerich & Payne, Inc.

     16,497       294,141  

National Oilwell Varco, Inc.

     60,098       691,728  
   

 

 

  
    4,508,403  
Entertainment — 0.9%  

Madison Square Garden Entertainment Corp.(a)

     2,905       205,848  

Roku, Inc.(a)

     15,769       2,442,460  
Security   Shares     Value  
Entertainment (continued)  

Spotify Technology SA(a)

     20,303     $ 5,234,520  

Take-Two Interactive Software, Inc.(a)

     17,431       2,859,033  

World Wrestling Entertainment, Inc., Class A

     6,775       315,783  
   

 

 

  
    11,057,644  
Equity Real Estate Investment Trusts (REITs) — 7.2%  

Alexandria Real Estate Equities, Inc.

     19,452       3,453,703  

American Campus Communities, Inc.

     21,216       756,138  

American Homes 4 Rent, Class A

     40,583       1,176,907  

Americold Realty Trust

     31,166       1,257,548  

Apartment Investment & Management Co., Class A

     22,946       890,764  

Apple Hospitality REIT, Inc.

     32,021       282,425  

AvalonBay Communities, Inc.

     21,824       3,341,691  

Boston Properties, Inc.

     24,117       2,148,584  

Brandywine Realty Trust

     26,115       282,825  

Brixmor Property Group, Inc.

     45,914       528,470  

Brookfield Property REIT, Inc., Class A

     8,831       102,528  

Camden Property Trust

     14,608       1,326,553  

CoreSite Realty Corp.

     6,229       803,852  

Corporate Office Properties Trust

     17,323       458,713  

Cousins Properties, Inc.

     23,125       710,400  

CubeSmart

     29,942       888,379  

CyrusOne, Inc.

     17,815       1,486,127  

Douglas Emmett, Inc.

     25,784       751,346  

Duke Realty Corp.

     57,405       2,307,107  

Empire State Realty Trust, Inc., Class A

     23,223       153,272  

EPR Properties

     12,043       344,791  

Equity Commonwealth

     18,174       573,753  

Equity LifeStyle Properties, Inc.

     26,954       1,841,497  

Equity Residential

     57,001       3,056,964  

Essex Property Trust, Inc.

     10,111       2,231,902  

Extra Space Storage, Inc.

     19,549       2,020,194  

Federal Realty Investment Trust

     11,626       887,064  

First Industrial Realty Trust, Inc.

     18,762       824,027  

Gaming and Leisure Properties, Inc.

     31,436       1,138,298  

Healthcare Trust of America, Inc., Class A

     33,943       937,166  

Healthpeak Properties, Inc.

     82,284       2,245,530  

Highwoods Properties, Inc.

     15,792       605,465  

Host Hotels & Resorts, Inc.(b)

     108,265       1,167,097  

Hudson Pacific Properties, Inc.

     23,277       548,639  

Invitation Homes, Inc.

     84,432       2,517,762  

Iron Mountain, Inc.

     44,332       1,249,719  

JBG SMITH Properties

     19,057       552,844  

Kilroy Realty Corp.

     17,513       1,020,483  

Kimco Realty Corp.

     64,020       713,823  

Lamar Advertising Co., Class A

     13,431       882,820  

Life Storage, Inc.

     7,228       709,284  

Medical Properties Trust, Inc.

     81,041       1,631,355  

Mid-America Apartment Communities, Inc.

     17,659       2,104,776  

National Retail Properties, Inc.

     26,672       945,522  

New Residential Investment Corp.

     65,094       516,195  

Omega Healthcare Investors, Inc.

     34,873       1,129,188  

Outfront Media, Inc.

     22,667       326,631  

Paramount Group, Inc.

     29,324       209,080  

Park Hotels & Resorts, Inc.

     37,754       312,226  

Rayonier, Inc.

     21,050       584,769  

Realty Income Corp.

     53,389       3,206,009  

Regency Centers Corp.

     26,262       1,077,530  

Rexford Industrial Realty, Inc.

     17,036       799,500  

Simon Property Group, Inc.

     47,187       2,942,109  

SL Green Realty Corp.

     11,983       557,210  

Spirit Realty Capital, Inc.

     15,766       543,296  

Starwood Property Trust, Inc.

     42,356       633,222  

STORE Capital Corp.

     34,927       827,421  

Sun Communities, Inc.

     14,904       2,234,557  
 

 

 

SCHEDULES OF INVESTMENTS

   15

Schedule of Investments  (continued)

July 31, 2020

   

iShares Russell Mid-Cap Index Fund

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Equity Real Estate Investment Trusts (REITs) (continued)  

Taubman Centers, Inc.

     9,059     $ 350,764  

UDR, Inc.

     45,410       1,643,842  

Ventas, Inc.

     58,200       2,232,552  

VEREIT, Inc.

     166,999       1,087,164  

VICI Properties, Inc.

     72,916       1,583,006  

Vornado Realty Trust

     27,296       942,258  

Weingarten Realty Investors

     19,212       327,757  

Welltower, Inc.

     64,899       3,475,990  

Weyerhaeuser Co.

     115,841       3,221,538  

WP Carey, Inc.

     26,524       1,893,018  
   

 

 

  
    86,514,939  
Food & Staples Retailing — 0.6%  

Casey’s General Stores, Inc.

     5,779       919,959  

Grocery Outlet Holding Corp.(a)(b)

     10,598       466,206  

Kroger Co.

     120,072       4,177,305  

Sprouts Farmers Market, Inc.(a)

     18,269       481,936  

U.S. Foods Holding Corp.(a)

     34,053       691,276  
   

 

 

  
    6,736,682  
Food Products — 2.6%  

Archer-Daniels-Midland Co.

     85,923       3,680,082  

Beyond Meat, Inc.(a)(b)

     8,043       1,012,614  

Bunge Ltd.

     21,400       929,616  

Campbell Soup Co.

     26,936       1,335,218  

Conagra Brands, Inc.

     75,590       2,830,845  

Flowers Foods, Inc.

     30,206       687,187  

Hain Celestial Group, Inc.(a)

     12,609       428,454  

Hershey Co.

     22,820       3,318,256  

Hormel Foods Corp.

     43,274       2,200,916  

Ingredion, Inc.

     10,403       899,859  

J.M. Smucker Co.

     17,122       1,872,291  

Kellogg Co.

     38,899       2,683,642  

Lamb Weston Holdings, Inc.

     22,740       1,366,219  

McCormick & Co., Inc.

     19,230       3,747,927  

Pilgrim’s Pride Corp.(a)

     8,338       127,988  

Post Holdings, Inc.(a)

     9,925       880,744  

TreeHouse Foods, Inc.(a)

     8,866       388,508  

Tyson Foods, Inc., Class A

     44,586       2,739,810  
   

 

 

  
    31,130,176  
Gas Utilities — 0.3%  

Atmos Energy Corp.

     18,788       1,991,340  

National Fuel Gas Co.

     12,917       524,043  

UGI Corp.

     32,237       1,074,781  
   

 

 

  
    3,590,164  
Health Care Equipment & Supplies — 3.9%  

ABIOMED, Inc.(a)

     6,864       2,058,788  

Align Technology, Inc.(a)

     12,106       3,556,985  

Cooper Cos., Inc.

     7,551       2,136,404  

DENTSPLY SIRONA, Inc.

     33,890       1,511,494  

Envista Holdings Corp.(a)

     24,554       536,996  

Globus Medical, Inc., Class A(a)

     11,363       547,469  

Haemonetics Corp.(a)

     7,648       670,424  

Hill-Rom Holdings, Inc.

     10,332       1,004,477  

Hologic, Inc.(a)

     39,757       2,774,244  

ICU Medical, Inc.(a)

     3,054       561,111  

IDEXX Laboratories, Inc.(a)

     13,047       5,189,444  

Insulet Corp.(a)

     9,770       1,986,827  

Integra LifeSciences Holdings Corp.(a)

     11,025       526,444  

Masimo Corp.(a)

     7,437       1,637,033  

Novocure Ltd.(a)

     15,452       1,171,107  

Quidel Corp.(a)

     5,751       1,624,485  

ResMed, Inc.

     22,229       4,501,595  

STERIS PLC

     13,089       2,089,397  

Tandem Diabetes Care, Inc.(a)

     9,102       950,795  
Security   Shares     Value  
Health Care Equipment & Supplies (continued)  

Teleflex, Inc.

     7,201     $ 2,686,693  

Varian Medical Systems, Inc.(a)

     14,067       2,007,642  

West Pharmaceutical Services, Inc.

     11,379       3,059,472  

Zimmer Biomet Holdings, Inc.

     32,130       4,333,052  
   

 

 

  
    47,122,378  
Health Care Providers & Services — 2.2%  

Acadia Healthcare Co., Inc.(a)

     13,846       412,749  

Amedisys, Inc.(a)

     4,871       1,140,593  

AmerisourceBergen Corp.

     22,594       2,263,693  

Cardinal Health, Inc.

     45,356       2,477,345  

Chemed Corp.

     2,402       1,182,241  

DaVita, Inc.(a)

     12,918       1,128,904  

Encompass Health Corp.

     15,102       1,028,144  

Guardant Health, Inc.(a)

     11,591       987,321  

Henry Schein, Inc.(a)

     22,092       1,518,383  

Laboratory Corp. of America Holdings(a)

     15,037       2,900,938  

McKesson Corp.

     25,060       3,763,010  

Molina Healthcare, Inc.(a)

     9,110       1,682,617  

Penumbra, Inc.(a)

     4,968       1,102,449  

Premier, Inc., Class A(a)

     9,501       332,250  

Quest Diagnostics, Inc.

     20,727       2,633,780  

Universal Health Services, Inc., Class B

     11,458       1,259,234  
   

 

 

  
    25,813,651  
Health Care Technology — 1.1%  

Cerner Corp.

     47,187       3,277,137  

Change Healthcare, Inc.(a)

     37,028       431,747  

Livongo Health, Inc.(a)

     8,385       1,066,991  

Teladoc Health, Inc.(a)

     11,450       2,720,864  

Veeva Systems, Inc., Class A(a)

     20,716       5,480,832  
   

 

 

  
    12,977,571  
Hotels, Restaurants & Leisure — 2.2%  

Aramark

     35,219       743,825  

Carnival Corp.(b)

     72,697       1,009,034  

Chipotle Mexican Grill, Inc.(a)

     4,319       4,989,136  

Choice Hotels International, Inc.

     5,246       440,874  

Darden Restaurants, Inc.

     20,164       1,530,448  

Domino’s Pizza, Inc.

     6,040       2,335,124  

Dunkin’ Brands Group, Inc.

     12,707       873,352  

Extended Stay America, Inc.

     27,193       310,272  

Hilton Worldwide Holdings, Inc.

     42,333       3,177,092  

Hyatt Hotels Corp., Class A

     5,417       260,016  

MGM Resorts International

     73,507       1,182,728  

Norwegian Cruise Line Holdings Ltd.(a)

     40,083       546,732  

Planet Fitness, Inc., Class A(a)

     12,387       646,601  

Royal Caribbean Cruises Ltd.

     26,426       1,287,210  

Six Flags Entertainment Corp.

     11,831       205,741  

Vail Resorts, Inc.

     6,222       1,194,811  

Wendy’s Co.

     28,131       652,077  

Wyndham Destinations, Inc.

     13,067       347,582  

Wyndham Hotels & Resorts, Inc.

     14,212       627,602  

Wynn Resorts Ltd.

     15,174       1,099,053  

Yum China Holdings, Inc.

     55,894       2,864,009  
   

 

 

  
    26,323,319  
Household Durables — 1.5%  

D.R. Horton, Inc.

     51,259       3,391,295  

Garmin Ltd.

     22,917       2,259,387  

Leggett & Platt, Inc.

     20,676       828,901  

Lennar Corp., Class A

     41,962       3,035,951  

Lennar Corp., Class B

     2,355       126,864  

Mohawk Industries, Inc.(a)

     9,055       723,042  

Newell Brands, Inc.

     60,056       984,918  

NVR, Inc.(a)

     518       2,035,818  

PulteGroup, Inc.

     40,535       1,767,326  
 

 

 

16  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (continued)

July 31, 2020

   

iShares Russell Mid-Cap Index Fund

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Household Durables (continued)  

Tempur Sealy International, Inc.(a)

     7,126     $ 576,850  

Toll Brothers, Inc.

     18,278       698,220  

Whirlpool Corp.

     9,446       1,540,831  
   

 

 

  
    17,969,403  
Household Products — 0.8%  

Church & Dwight Co., Inc.

     38,124       3,672,485  

Clorox Co.

     19,565       4,627,318  

Energizer Holdings, Inc.

     9,589       480,697  

Reynolds Consumer Products, Inc.

     7,339       249,966  

Spectrum Brands Holdings, Inc.

     6,603       357,618  
   

 

 

  
    9,388,084  
Independent Power and Renewable Electricity Producers — 0.4%  

AES Corp.

     103,159       1,571,112  

NRG Energy, Inc.

     38,053       1,286,572  

Vistra Corp.

     75,426       1,407,449  
   

 

 

  
    4,265,133  
Industrial Conglomerates — 0.2%  

BWX Technologies, Inc.

     15,009       818,291  

Carlisle Cos., Inc.

     8,335       992,532  

Seaboard Corp.

     41       110,833  
   

 

 

  
    1,921,656  
Insurance — 3.6%  

Alleghany Corp.

     2,162       1,129,256  

American Financial Group, Inc.

     11,429       694,540  

American National Group, Inc.

     1,209       89,043  

Arch Capital Group Ltd.(a)

     60,536       1,861,482  

Arthur J Gallagher & Co.

     29,189       3,137,526  

Assurant, Inc.

     9,227       991,626  

Assured Guaranty Ltd.

     13,064       285,187  

Athene Holding Ltd., Class A(a)

     17,873       576,404  

Axis Capital Holdings Ltd.

     12,870       516,344  

Brighthouse Financial, Inc.(a)

     15,530       440,120  

Brown & Brown, Inc.

     36,535       1,661,246  

Cincinnati Financial Corp.

     23,211       1,808,833  

CNA Financial Corp.

     4,482       149,251  

Erie Indemnity Co., Class A

     3,902       819,888  

Everest Re Group Ltd.

     6,240       1,365,250  

Fidelity National Financial, Inc.

     42,770       1,384,037  

First American Financial Corp.

     16,788       856,356  

Globe Life, Inc.

     16,260       1,294,296  

Hanover Insurance Group, Inc.

     5,859       596,915  

Hartford Financial Services Group, Inc.

     55,432       2,345,882  

Kemper Corp.

     9,512       746,882  

Lincoln National Corp.

     30,252       1,127,492  

Loews Corp.

     37,300       1,358,093  

Markel Corp.(a)

     2,095       2,188,311  

Mercury General Corp.

     4,206       180,479  

Old Republic International Corp.

     43,867       704,943  

Primerica, Inc.

     6,186       740,217  

Principal Financial Group, Inc.

     42,109       1,786,685  

Prudential Financial, Inc.

     60,930       3,861,134  

Reinsurance Group of America, Inc.

     10,473       892,823  

RenaissanceRe Holdings Ltd.

     7,586       1,368,363  

Unum Group

     31,635       545,071  

W.R. Berkley Corp.

     21,584       1,332,812  

White Mountains Insurance Group Ltd.

     468       411,901  

Willis Towers Watson PLC

     19,954       4,190,540  
   

 

 

  
    43,439,228  
Interactive Media & Services — 1.1%  

IAC/InterActiveCorp(a)

     11,628       1,539,780  

Match Group, Inc.(a)

     33,942       3,485,843  

Pinterest, Inc., Class A(a)

     62,140       2,130,780  
Security   Shares     Value  
Interactive Media & Services (continued)  

Twitter, Inc.(a)

     119,290     $ 4,342,156  

Zillow Group, Inc., Class A(a)

     8,821       600,622  

Zillow Group, Inc., Class C(a)

     21,007       1,436,669  
   

 

 

  
    13,535,850  
Internet & Direct Marketing Retail — 0.7%  

Etsy, Inc.(a)

     18,298       2,166,117  

Expedia Group, Inc.

     20,960       1,697,970  

GrubHub, Inc.(a)

     14,243       1,028,914  

Qurate Retail, Inc., Series A(a)

     59,012       643,821  

TripAdvisor, Inc.

     15,579       315,163  

Wayfair, Inc., Class A(a)(b)

     10,204       2,715,183  
   

 

 

  
    8,567,168  
IT Services — 4.3%  

Akamai Technologies, Inc.(a)

     24,792       2,787,613  

Alliance Data Systems Corp.

     7,165       317,839  

Amdocs Ltd.

     20,644       1,281,992  

Black Knight, Inc.(a)

     22,391       1,677,534  

Booz Allen Hamilton Holding Corp.

     21,334       1,744,268  

Broadridge Financial Solutions, Inc.

     17,742       2,383,460  

CACI International, Inc., Class A(a)

     3,880       806,342  

CoreLogic, Inc.

     12,273       836,528  

DXC Technology Co.

     39,099       700,263  

EPAM Systems, Inc.(a)

     8,191       2,376,045  

Euronet Worldwide, Inc.(a)

     7,790       748,931  

Fastly, Inc., Class A(a)

     11,369       1,096,995  

FleetCor Technologies, Inc.(a)

     12,787       3,306,335  

Gartner, Inc.(a)

     13,416       1,672,170  

Genpact Ltd.

     29,079       1,157,926  

GoDaddy, Inc., Class A(a)

     25,666       1,803,807  

Jack Henry & Associates, Inc.

     11,818       2,107,149  

Leidos Holdings, Inc.

     20,859       1,984,942  

MongoDB, Inc.(a)(b)

     6,480       1,484,438  

Okta, Inc.(a)

     17,833       3,940,736  

Paychex, Inc.

     49,770       3,579,458  

Sabre Corp.

     42,537       321,580  

Science Applications International Corp.

     8,828       706,063  

StoneCo Ltd., Class A(a)(b)

     24,182       1,153,723  

Switch, Inc., Class A

     13,504       242,937  

Teradata Corp.(a)(b)

     16,891       354,711  

Twilio, Inc., Class A(a)

     19,923       5,527,039  

VeriSign, Inc.(a)

     15,854       3,355,975  

Western Union Co.

     64,066       1,555,523  

WEX, Inc.(a)

     6,711       1,062,821  
   

 

 

  
    52,075,143  
Leisure Products — 0.4%  

Brunswick Corp.

     12,192       816,620  

Hasbro, Inc.

     19,719       1,434,755  

Mattel, Inc.(a)

     53,276       591,896  

Peloton Interactive, Inc., Class A(a)

     15,234       1,039,264  

Polaris, Inc.

     8,980       930,597  
   

 

 

  
    4,813,132  
Life Sciences Tools & Services — 2.5%  

10X Genomics, Inc., Class A(a)

     8,441       830,341  

Adaptive Biotechnologies Corp.(a)

     11,075       413,319  

Agilent Technologies, Inc.

     47,980       4,621,913  

Avantor, Inc.(a)

     63,984       1,412,767  

Bio-Rad Laboratories, Inc., Class A(a)

     3,273       1,717,965  

Bio-Techne Corp.

     5,888       1,620,142  

Bruker Corp.

     16,178       721,862  

Charles River Laboratories International, Inc.(a)

     7,607       1,513,717  

IQVIA Holdings, Inc.(a)

     29,488       4,670,604  

Mettler-Toledo International, Inc.(a)

     3,658       3,420,230  

PerkinElmer, Inc.

     17,256       2,051,911  
 

 

 

SCHEDULES OF INVESTMENTS

   17

Schedule of Investments  (continued)

July 31, 2020

   

iShares Russell Mid-Cap Index Fund

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Life Sciences Tools & Services (continued)  

PPD, Inc.(a)

     9,685     $ 284,449  

PRA Health Sciences, Inc.(a)

     9,914       1,056,436  

QIAGEN NV(a)

     34,941       1,727,833  

Repligen Corp.(a)

     8,128       1,226,597  

Syneos Health, Inc.(a)

     9,719       606,368  

Waters Corp.(a)

     9,487       2,022,154  
   

 

 

  
    29,918,608  
Machinery — 4.0%  

AGCO Corp.

     9,566       627,817  

Allison Transmission Holdings, Inc.

     17,349       648,159  

Colfax Corp.(a)

     15,288       444,575  

Crane Co.

     7,542       426,651  

Cummins, Inc.

     22,864       4,418,697  

Donaldson Co., Inc.

     19,677       951,186  

Dover Corp.

     22,281       2,293,383  

Flowserve Corp.

     20,057       558,989  

Fortive Corp.

     46,132       3,238,005  

Gates Industrial Corp. PLC(a)(b)

     7,152       75,382  

Graco, Inc.

     25,597       1,362,784  

IDEX Corp.

     11,678       1,924,768  

Ingersoll Rand, Inc.(a)

     53,724       1,697,141  

ITT, Inc.

     13,469       777,565  

Lincoln Electric Holdings, Inc.

     8,913       805,646  

Middleby Corp.(a)

     8,516       707,339  

Nordson Corp.

     8,904       1,724,082  

Oshkosh Corp.

     10,497       826,324  

Otis Worldwide Corp.

     63,216       3,966,172  

PACCAR, Inc.

     52,609       4,475,974  

Parker-Hannifin Corp.

     19,856       3,552,636  

Pentair PLC

     25,750       1,103,387  

Snap-on, Inc.

     8,310       1,212,180  

Stanley Black & Decker, Inc.

     23,939       3,670,327  

Timken Co.

     9,967       455,093  

Toro Co.

     16,569       1,182,198  

Trinity Industries, Inc.

     14,112       275,607  

Valmont Industries, Inc.

     3,247       393,536  

Westinghouse Air Brake Technologies Corp.

     28,056       1,744,803  

Woodward, Inc.

     8,761       656,549  

Xylem, Inc.

     27,732       2,023,881  
   

 

 

  
    48,220,836  
Marine — 0.0%  

Kirby Corp.(a)

     9,259       428,136  
   

 

 

  
Media — 2.1%  

Altice USA, Inc., Class A(a)

     49,540       1,337,085  

Cable One, Inc.

     789       1,438,000  

Discovery, Inc., Class A(a)(b)

     23,787       501,906  

Discovery, Inc., Class C(a)

     51,436       974,712  

DISH Network Corp., Class A(a)

     38,370       1,232,061  

Fox Corp., Class A

     52,419       1,350,838  

Fox Corp., Class B(a)

     25,039       645,255  

GCI Liberty, Inc., Class A(a)

     15,294       1,198,897  

Interpublic Group of Cos., Inc.

     60,228       1,087,115  

John Wiley & Sons, Inc., Class A

     6,635       224,462  

Liberty Broadband Corp., Class A(a)

     3,916       528,699  

Liberty Broadband Corp., Class C(a)

     16,274       2,233,932  

Liberty Media Corp. — Liberty Formula One, Class A(a)

     3,867       127,959  

Liberty Media Corp. — Liberty Formula One, Class C(a)(b)

     30,721       1,088,752  

Liberty Media Corp. — Liberty SiriusXM, Class A(a)

     12,835       446,530  

Liberty Media Corp. — Liberty SiriusXM, Class C(a)

     27,102       948,299  

Lions Gate Entertainment Corp., Class A(a)

     7,972       61,066  

Lions Gate Entertainment Corp., Class B(a)

     17,575       124,958  

Live Nation Entertainment, Inc.(a)

     21,969       1,028,369  

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

     2,907       446,777  
Security   Shares     Value  
Media (continued)  

New York Times Co., Class A

     25,236     $ 1,164,389  

News Corp., Class A

     60,010       763,327  

News Corp., Class B

     18,997       242,402  

Nexstar Media Group, Inc., Class A

     6,853       600,665  

Omnicom Group, Inc.

     33,041       1,775,293  

Sirius XM Holdings, Inc.

     182,732       1,074,464  

ViacomCBS, Inc., Class A

     1,583       43,912  

ViacomCBS, Inc., Class B

     84,132       2,193,321  
   

 

 

  
    24,883,445  
Metals & Mining — 0.7%  

Freeport-McMoRan, Inc.

     224,866       2,905,268  

Nucor Corp.

     46,723       1,960,030  

Reliance Steel & Aluminum Co.

     9,907       973,462  

Royal Gold, Inc.

     10,161       1,421,829  

Steel Dynamics, Inc.

     31,285       857,522  
   

 

 

  
    8,118,111  
Mortgage Real Estate Investment Trusts (REITs) — 0.2%  

AGNC Investment Corp.

     88,025       1,197,140  

Annaly Capital Management, Inc.

     221,906       1,644,323  
   

 

 

  
    2,841,463  
Multi-Utilities — 2.2%  

Ameren Corp.

     38,184       3,063,884  

CenterPoint Energy, Inc.

     78,091       1,484,510  

CMS Energy Corp.

     44,297       2,842,981  

Consolidated Edison, Inc.

     51,961       3,992,164  

DTE Energy Co.

     29,497       3,410,738  

MDU Resources Group, Inc.

     30,899       648,261  

NiSource, Inc.

     58,890       1,439,861  

Public Service Enterprise Group, Inc.

     78,362       4,383,570  

WEC Energy Group, Inc.

     48,990       4,666,787  
   

 

 

  
    25,932,756  
Multiline Retail — 0.4%  

Dollar Tree, Inc.(a)

     36,396       3,397,567  

Kohl’s Corp.

     23,731       451,838  

Nordstrom, Inc.(b)

     17,323       237,152  

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

     8,233       865,288  
   

 

 

  
    4,951,845  
Oil, Gas & Consumable Fuels — 2.4%  

Antero Midstream Corp.

     43,827       248,499  

Apache Corp.

     58,526       898,374  

Cabot Oil & Gas Corp.

     60,557       1,132,416  

Cheniere Energy, Inc.(a)

     35,872       1,774,947  

Cimarex Energy Co.

     15,792       386,272  

Concho Resources, Inc.

     30,221       1,587,811  

Continental Resources, Inc.

     11,583       200,270  

Devon Energy Corp.

     58,824       617,064  

Diamondback Energy, Inc.

     24,316       969,236  

EQT Corp.

     39,663       575,907  

Equitrans Midstream Corp.

     63,963       617,243  

Hess Corp.

     42,458       2,089,358  

HollyFrontier Corp.

     23,142       636,405  

Marathon Oil Corp.

     122,683       673,530  

Marathon Petroleum Corp.

     100,377       3,834,401  

Murphy Oil Corp.

     23,017       304,055  

Noble Energy, Inc.

     73,802       737,282  

Occidental Petroleum Corp.

     125,870       1,981,194  

ONEOK, Inc.

     68,017       1,898,354  

Parsley Energy, Inc., Class A

     46,692       512,678  

Pioneer Natural Resources Co.

     25,458       2,467,389  

Targa Resources Corp.

     35,703       652,651  

Williams Cos., Inc.

     188,585       3,607,631  

WPX Energy, Inc.(a)

     62,433       372,725  
   

 

 

  
    28,775,692  
 

 

 

18  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (continued)

July 31, 2020

   

iShares Russell Mid-Cap Index Fund

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Personal Products — 0.1%  

Coty, Inc., Class A

     46,530     $ 172,626  

Herbalife Nutrition Ltd.(a)

     15,757       807,389  

Nu Skin Enterprises, Inc., Class A

     7,966       357,275  
   

 

 

  
    1,337,290  
Pharmaceuticals — 0.8%  

Catalent, Inc.(a)

     23,802       2,078,867  

Elanco Animal Health, Inc.(a)(b)

     61,973       1,464,422  

Horizon Therapeutics PLC(a)

     28,474       1,742,324  

Jazz Pharmaceuticals PLC(a)

     8,431       912,656  

Mylan NV(a)

     79,937       1,287,785  

Nektar Therapeutics(a)(b)

     26,654       590,653  

Perrigo Co. PLC

     21,102       1,118,828  

Reata Pharmaceuticals, Inc., Class A(a)

     3,698       546,194  
   

 

 

  
    9,741,729  
Professional Services — 2.0%  

CoStar Group, Inc.(a)

     5,964       5,067,968  

Equifax, Inc.

     18,758       3,049,300  

FTI Consulting, Inc.(a)

     5,656       675,553  

IHS Markit Ltd.

     61,564       4,970,062  

ManpowerGroup, Inc.

     8,982       617,872  

Nielsen Holdings PLC

     55,230       796,969  

Paylocity Holding Corp.(a)

     5,364       714,485  

Robert Half International, Inc.

     17,440       887,173  

TransUnion

     29,558       2,647,510  

Verisk Analytics, Inc.

     24,595       4,641,322  
   

 

 

  
    24,068,214  
Real Estate Management & Development — 0.3%  

CBRE Group, Inc., Class A(a)

     51,729       2,266,247  

Howard Hughes Corp.(a)(b)

     6,044       321,480  

Jones Lang LaSalle, Inc.

     7,982       789,500  
   

 

 

  
    3,377,227  
Road & Rail — 0.9%  

AMERCO

     1,381       438,785  

JB Hunt Transport Services, Inc.

     13,000       1,682,200  

Kansas City Southern

     14,701       2,526,367  

Knight-Swift Transportation Holdings, Inc.

     19,491       847,664  

Landstar System, Inc.

     5,926       721,668  

Lyft, Inc., Class A(a)(b)

     37,093       1,084,228  

Old Dominion Freight Line, Inc.(b)

     15,125       2,765,152  

Ryder System, Inc.

     8,209       300,696  

Schneider National, Inc., Class B

     8,744       219,737  
   

 

 

  
    10,586,497  
Semiconductors & Semiconductor Equipment — 3.2%  

Cirrus Logic, Inc.(a)

     8,942       612,795  

Cree, Inc.(a)

     17,004       1,171,916  

Enphase Energy, Inc.(a)

     16,492       995,457  

Entegris, Inc.

     20,768       1,493,427  

First Solar, Inc.(a)(b)

     12,886       767,361  

Inphi Corp.(a)

     7,414       968,713  

KLA Corp.

     24,077       4,811,307  

Marvell Technology Group Ltd.

     102,234       3,728,474  

Maxim Integrated Products, Inc.

     41,174       2,803,538  

Microchip Technology, Inc.

     36,411       3,704,091  

MKS Instruments, Inc.

     8,530       1,087,063  

Monolithic Power Systems, Inc.

     6,686       1,771,857  

ON Semiconductor Corp.(a)

     63,231       1,302,559  

Qorvo, Inc.(a)

     17,913       2,295,551  

Skyworks Solutions, Inc.

     25,863       3,765,136  

SolarEdge Technologies, Inc.(a)(b)

     7,553       1,322,530  

Teradyne, Inc.

     25,646       2,281,468  

Xilinx, Inc.

     37,884       4,066,847  
   

 

 

  
    38,950,090  
Security   Shares     Value  
Software — 7.6%  

Alteryx, Inc., Class A(a)

     8,152     $ 1,430,594  

Anaplan, Inc.(a)

     20,300       921,823  

ANSYS, Inc.(a)(b)

     13,286       4,126,632  

Aspen Technology, Inc.(a)(b)

     10,546       1,025,704  

Avalara, Inc.(a)(b)

     11,903       1,600,358  

Bill.Com Holdings, Inc.(a)(b)

     2,502       232,961  

Cadence Design Systems, Inc.(a)

     42,758       4,671,311  

CDK Global, Inc.

     18,878       858,194  

Ceridian HCM Holding, Inc.(a)

     16,518       1,293,194  

Citrix Systems, Inc.

     19,110       2,728,144  

Cloudflare, Inc., Class A(a)

     16,986       706,957  

Coupa Software, Inc.(a)

     10,298       3,155,822  

Crowdstrike Holdings, Inc., Class A(a)

     17,880       2,024,016  

Datadog, Inc., Class A(a)

     23,637       2,218,569  

DocuSign, Inc.(a)

     27,342       5,928,569  

Dropbox, Inc., Class A(a)

     38,119       867,207  

Dynatrace, Inc.(a)

     23,541       984,720  

Elastic NV(a)

     8,447       812,517  

Everbridge, Inc.(a)

     5,352       764,266  

Fair Isaac Corp.(a)

     4,338       1,905,206  

FireEye, Inc.(a)

     33,146       500,505  

Five9, Inc.(a)

     9,628       1,163,255  

Fortinet, Inc.(a)

     20,616       2,851,193  

Globant SA(a)

     5,599       968,291  

Guidewire Software, Inc.(a)(b)

     12,875       1,514,873  

HubSpot, Inc.(a)

     6,410       1,503,850  

LogMeIn, Inc.

     7,484       642,202  

Manhattan Associates, Inc.(a)

     9,827       941,328  

Medallia, Inc.(a)

     12,692       390,025  

New Relic, Inc.(a)(b)

     7,772       551,113  

NortonLifeLock, Inc.

     86,479       1,854,975  

Nuance Communications, Inc.(a)

     43,579       1,191,886  

Nutanix, Inc., Class A(a)

     27,612       612,710  

PagerDuty, Inc.(a)

     10,555       321,716  

Palo Alto Networks, Inc.(a)

     15,159       3,879,491  

Paycom Software, Inc.(a)

     7,639       2,172,302  

Pegasystems, Inc.

     6,186       723,082  

Pluralsight, Inc., Class A(a)(b)

     14,459       306,097  

Proofpoint, Inc.(a)

     8,791       1,016,855  

PTC, Inc.(a)

     16,174       1,383,847  

RealPage, Inc.(a)

     13,585       855,991  

RingCentral, Inc., Class A(a)

     11,848       3,439,119  

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

     58,135       1,717,889  

Smartsheet, Inc., Class A(a)

     17,235       822,799  

SolarWinds Corp.(a)

     6,908       126,831  

Splunk, Inc., Class A(a)

     24,657       5,173,532  

SS&C Technologies Holdings, Inc.

     34,962       2,010,315  

Synopsys, Inc.(a)

     23,217       4,625,291  

Trade Desk, Inc., Class A(a)

     6,279       2,833,838  

Tyler Technologies, Inc.(a)

     6,056       2,163,506  

Zendesk, Inc.(a)

     17,513       1,596,310  

Zscaler, Inc.(a)(b)

     10,947       1,421,468  

Zynga, Inc., Class A(a)

     137,828       1,354,849  
   

 

 

  
    90,888,098  
Specialty Retail — 2.7%  

Advance Auto Parts, Inc.

     10,324       1,550,045  

AutoNation, Inc.(a)

     8,569       439,932  

AutoZone, Inc.(a)

     3,621       4,372,068  

Best Buy Co., Inc.

     35,479       3,533,354  

Burlington Stores, Inc.(a)

     10,074       1,893,912  

CarMax, Inc.(a)

     25,219       2,445,486  

Carvana Co.(a)(b)

     8,537       1,322,808  

Dick’s Sporting Goods, Inc.

     9,534       434,941  

Five Below, Inc.(a)

     8,463       921,705  
 

 

 

SCHEDULES OF INVESTMENTS

   19

Schedule of Investments  (continued)

July 31, 2020

   

iShares Russell Mid-Cap Index Fund

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Specialty Retail (continued)  

Floor & Decor Holdings, Inc., Class A(a)

     12,623     $ 831,856  

Foot Locker, Inc.

     16,213       476,500  

Gap, Inc.

     28,392       379,601  

L Brands, Inc.

     35,497       866,482  

O’Reilly Automotive, Inc.(a)

     11,352       5,419,218  

Penske Automotive Group, Inc.

     4,934       221,142  

Tiffany & Co.

     18,777       2,353,885  

Tractor Supply Co.

     17,920       2,557,901  

Ulta Beauty, Inc.(a)(b)

     8,349       1,611,273  

Williams-Sonoma, Inc.

     11,908       1,037,425  
   

 

 

  
    32,669,534  
Technology Hardware, Storage & Peripherals — 0.9%  

Hewlett Packard Enterprise Co.

     200,024       1,974,237  

HP, Inc.

     221,990       3,902,584  

NCR Corp.(a)

     19,872       366,241  

NetApp, Inc.

     34,323       1,520,509  

Pure Storage, Inc., Class A(a)

     37,433       668,553  

Western Digital Corp.

     46,515       2,004,797  

Xerox Holdings Corp.(a)

     27,491       457,725  
   

 

 

  
    10,894,646  
Textiles, Apparel & Luxury Goods — 1.1%  

Capri Holdings Ltd.(a)(b)

     22,027       329,964  

Carter’s, Inc.

     6,639       522,622  

Columbia Sportswear Co.

     4,463       338,474  

Hanesbrands, Inc.

     54,001       763,034  

Lululemon Athletica, Inc.(a)

     17,621       5,737,221  

PVH Corp.

     10,948       532,730  

Ralph Lauren Corp.

     7,403       527,834  

Skechers U.S.A., Inc., Class A(a)

     20,747       607,472  

Tapestry, Inc.

     42,863       572,650  

Under Armour, Inc., Class A(a)

     29,046       305,564  

Under Armour, Inc., Class C(a)

     29,825       283,039  

VF Corp.

     50,624       3,055,665  
   

 

 

  
    13,576,269  
Thrifts & Mortgage Finance — 0.1%  

LendingTree, Inc.(a)

     1,236       428,014  

MGIC Investment Corp.

     51,817       428,527  

New York Community Bancorp, Inc.

     69,657       733,488  

TFS Financial Corp.

     7,766       112,452  
   

 

 

  
    1,702,481  
Trading Companies & Distributors — 1.0%  

Air Lease Corp.

     16,670       437,087  

Fastenal Co.

     88,798       4,177,058  

HD Supply Holdings, Inc.(a)

     24,917       874,587  

MSC Industrial Direct Co., Inc., Class A

     6,810       449,528  

United Rentals, Inc.(a)

     11,163       1,734,395  

Univar Solutions, Inc.(a)

     26,427       466,965  

W.W. Grainger, Inc.

     6,827       2,331,625  

Watsco, Inc.

     5,049       1,191,918  
   

 

 

  
    11,663,163  
Transportation Infrastructure — 0.0%  

Macquarie Infrastructure Corp.

     11,606       347,716  
   

 

 

  
Water Utilities — 0.5%  

American Water Works Co., Inc.

     28,104       4,138,876  

Essential Utilities, Inc.

     34,088       1,545,891  
   

 

 

  
    5,684,767  
Wireless Telecommunication Services — 0.0%  

Telephone & Data Systems, Inc.

     15,458       300,194  

United States Cellular Corp.(a)

     2,286       67,826  
   

 

 

  
    368,020  
   

 

 

  

Total Common Stocks — 99.4%
(Cost — $946,470,112)

 

     1,193,508,954  
 

 

 

  
Security   Shares     Value  

Investment Companies — 0.3%

 

Equity Fund — 0.3%  

iShares Russell Mid-Cap ETF(e)

     63,088     $ 3,581,506  
   

 

 

  

Total Investment Companies — 0.3%
(Cost — $2,353,914)

 

     3,581,506  
   

 

 

  

Warrants — 0.0%

 

Oil, Gas & Consumable Fuels — 0.0%  

Occidental Petroleum Corp., (Expires 8/3/27)(a)

     15,821       88,598  
   

 

 

  

Total Warrants — 0.0%
(Cost — $—)

 

     88,598  
   

 

 

  

Total Long-Term Investments — 99.7%
(Cost — $948,824,026)

 

     1,197,179,058  
   

 

 

  

Short-Term Securities — 2.6%

 

BlackRock Cash Funds: Institutional,
SL Agency Shares,

    

0.43%(c)(d)(e)

     28,488,916       28,520,253  

BlackRock Cash Funds: Treasury,
SL Agency Shares,

    

0.15%(c)(e)

     2,996,526       2,996,526  
   

 

 

  

Total Short-Term Securities — 2.6%
(Cost — $31,479,089)

 

     31,516,779  
   

 

 

  

Total Investments — 102.3%
(Cost — $980,303,115)

 

     1,228,695,837  

Liabilities in Excess of Other Assets — (2.3)%

 

     (27,540,173 ) 
   

 

 

  

Net Assets — 100.0%

 

   $ 1,201,155,664  
   

 

 

  

 

(a) 

Non-income producing security.

(b) 

Security, or a portion of the security, is on loan.

(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.

 

 

 

20  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (continued)

July 31, 2020

   

iShares Russell Mid-Cap Index Fund

 

(e) 

Investments in issuers considered to be an affiliate/affiliates of the Fund during the year ended July 31, 2020 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliated Issuer    Shares
Held at
07/31/19		      Shares
Purchased		      Shares Sold      Shares
Held at
07/31/20		      Value at
07/31/20		      Income      Net
Realized
Gain (Loss) (a)		      Change in
Unrealized
Appreciation
(Depreciation)		  

BlackRock Cash Funds: Institutional, SL Agency Shares

      36,749,992        —        (8,261,076 )(b)       28,488,916      $ 28,520,253      $ 281,581 (c)     $ (7,599 )     $ 29,854  

BlackRock Cash Funds: Treasury, SL Agency Shares

      13,140,461        —        (10,143,935 )(b)       2,996,526        2,996,526        144,162        —        —  

iShares Russell Mid-Cap ETF

      127,180        1,142,741        (1,206,833 )       63,088        3,581,506        179,801        (940,781 )       958,117  
              

 

 

     

 

 

     

 

 

     

 

 

  
   $ 35,098,285      $ 605,544      $ (948,380 )     $ 987,971  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

  (a) 

Includes net capital gain distributions, if applicable.

 
  (b) 

Represents net shares 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.

 

For Fund compliance purposes, the Fund’s industry classifications refer to one or more of the industry sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such industry sub-classifications for reporting ease.

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 400 E-Mini Index

      14          09/18/20        $ 2,605        $ 59,952  

S&P 500 E-Mini Index

      10          09/18/20          1,632          31,019  
                 

 

 

  
                  $ 90,971  
                 

 

 

  

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)

    $ —      $ —      $ 90,971      $ —      $ —      $ —      $ 90,971  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

  (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 year ended July 31, 2020, 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

    $ —      $ —      $ 235,582      $ —      $ —      $ —      $ 235,582  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Change in Unrealized Appreciation (Depreciation) on:

                     

Futures contracts

    $ —      $ —      $ 98,470      $ —      $ —      $ —      $ 98,470  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

 

SCHEDULES OF INVESTMENTS

   21

Schedule of Investments  (continued)

July 31, 2020

   

iShares Russell Mid-Cap Index Fund

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

 

Average notional value of contracts — long

    $ 10,970,133  

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 investments and derivative financial instruments. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments, refer to the Notes to Financial Statements.

The following tables summarize the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy:

 

      Level 1        Level 2        Level 3        Total  

Assets:

                 

Investments:

                 

Long-Term Investments:

                  

Common Stocks

   $ 1,193,508,954        $ —        $ —        $ 1,193,508,954  

Investment Companies

     3,581,506          —          —          3,581,506  

Warrants

     88,598          —          —          88,598  

Short-Term Securities:

                  

Short-Term Securities

     31,516,779          —          —          31,516,779  
  

 

 

       

 

 

       

 

 

       

 

 

  
   $ 1,228,695,837        $ —        $ —        $ 1,228,695,837  
  

 

 

       

 

 

       

 

 

       

 

 

  

Derivative Financial Instruments(a)

                  

Assets:

                 

Equity contracts

   $ 90,971        $ —        $ —        $ 90,971  
  

 

 

       

 

 

       

 

 

       

 

 

  

The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.

 

  (a) 

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

 

See notes to financial statements.

 

 

22  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

July 31, 2020

   

iShares Russell Small/Mid-Cap Index Fund

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks — 98.3%

 

Aerospace & Defense — 1.2%  

AAR Corp.

     1,973     $ 33,975  

Aerojet Rocketdyne Holdings, Inc.(a)

     4,361       179,891  

AeroVironment, Inc.(a)

     1,239       94,846  

Astronics Corp.(a)

     1,123       9,770  

Axon Enterprise, Inc.(a)

     3,629       301,679  

Cubic Corp.

     1,828       76,776  

Curtiss-Wright Corp.

     2,395       213,442  

Ducommun, Inc.(a)

     660       23,727  

Hexcel Corp.

     4,933       184,001  

Howmet Aerospace, Inc.

     23,196       342,837  

Huntington Ingalls Industries, Inc.

     2,310       401,270  

Kratos Defense & Security Solutions, Inc.(a)

     6,065       109,231  

Maxar Technologies, Inc.(a)

     3,386       60,237  

Mercury Systems, Inc.(a)(b)

     3,219       249,247  

Moog, Inc., Class A

     1,960       105,291  

National Presto Industries, Inc.

     280       23,909  

PAE, Inc.(a)

     3,387       26,690  

Park Aerospace Corp.

     1,989       21,441  

Parsons Corp.(a)

     1,299       45,244  

Spirit AeroSystems Holdings, Inc., Class A

     6,031       118,027  

Textron, Inc.

     13,306       464,912  

Triumph Group, Inc.

     2,190       14,848  

Vectrus, Inc.(a)

     671       29,517  

Virgin Galactic Holdings, Inc.(a)(b)

     3,451       77,475  
   

 

 

  
    3,208,283  
Air Freight & Logistics — 0.3%  

Air Transport Services Group, Inc.(a)

     3,357       81,810  

Atlas Air Worldwide Holdings, Inc.(a)

     1,470       76,558  

Echo Global Logistics, Inc.(a)

     1,592       39,903  

Forward Air Corp.

     1,867       97,065  

Hub Group, Inc., Class A(a)

     1,881       99,505  

Park-Ohio Holdings Corp.

     471       6,792  

Radiant Logistics, Inc.(a)

     1,614       6,860  

XPO Logistics, Inc.(a)

     5,361       402,182  
   

 

 

  
    810,675  
Airlines — 0.4%  

Alaska Air Group, Inc.

     7,082       243,904  

Allegiant Travel Co.

     748       83,798  

American Airlines Group, Inc.(b)

     28,995       322,424  

Copa Holdings SA, Class A

     1,944       80,559  

Hawaiian Holdings, Inc.

     2,662       31,651  

JetBlue Airways Corp.(a)(b)

     15,532       160,601  

Mesa Air Group, Inc.(a)

     1,375       4,263  

SkyWest, Inc.

     2,896       76,194  

Spirit Airlines, Inc.(a)

     4,943       78,149  
   

 

 

  
    1,081,543  
Auto Components — 1.0%  

Adient PLC(a)

     5,020       83,533  

American Axle & Manufacturing Holdings, Inc.(a)

     6,522       46,045  

BorgWarner, Inc.

     12,258       448,643  

Cooper Tire & Rubber Co.

     2,835       88,055  

Cooper-Standard Holdings, Inc.(a)

     836       8,954  

Dana, Inc.

     8,290       94,755  

Dorman Products, Inc.(a)

     1,520       124,260  

Fox Factory Holding Corp.(a)

     2,281       203,009  

Gentex Corp.

     14,465       390,410  

Gentherm, Inc.(a)

     1,905       73,857  

Goodyear Tire & Rubber Co.

     13,218       119,094  

LCI Industries

     1,405       176,749  

Lear Corp.

     3,550       391,849  
Security   Shares     Value  
Auto Components (continued)  

Modine Manufacturing Co.(a)

     2,488     $ 13,535  

Motorcar Parts of America, Inc.(a)(b)

     1,186       19,741  

Standard Motor Products, Inc.

     1,198       54,485  

Stoneridge, Inc.(a)

     1,539       31,888  

Tenneco, Inc., Class A(a)

     2,345       17,376  

Visteon Corp.(a)(b)

     1,770       128,520  

Workhorse Group, Inc.(a)(b)

     3,593       55,763  

XPEL, Inc.(a)

     949       15,972  
   

 

 

  
    2,586,493  
Automobiles — 0.3%  

Harley-Davidson, Inc.(b)

     9,210       239,736  

Thor Industries, Inc.(b)

     3,241       369,442  

Winnebago Industries, Inc.(b)

     1,779       107,469  
   

 

 

  
    716,647  
Banks — 5.2%  

1st Constitution Bancorp

     645       7,972  

1st Source Corp.

     1,111       36,796  

ACNB Corp.

     459       9,455  

Allegiance Bancshares, Inc.

     1,588       38,731  

Altabancorp

     1,002       18,787  

Amalgamated Bank, Class A

     644       7,438  

Amerant Bancorp, Inc.(a)

     1,323       17,662  

American National Bankshares, Inc.

     660       14,494  

Ameris Bancorp

     4,380       101,068  

Ames National Corp.

     530       9,805  

Arrow Financial Corp.

     959       26,181  

Associated Banc-Corp

     9,115       117,037  

Atlantic Capital Bancshares, Inc.(a)

     1,165       11,650  

Atlantic Union Bankshares Corp.

     4,553       102,761  

Auburn National BanCorp., Inc.

     141       6,416  

BancFirst Corp.

     1,185       51,619  

Banco Latinoamericano de Comercio Exterior SA

     1,922       22,430  

Bancorp, Inc.(a)

     3,130       29,516  

BancorpSouth Bank

     6,319       132,257  

Bank First Corp.

     368       22,893  

Bank of Commerce Holdings

     768       5,798  

Bank of Hawaii Corp.

     2,510       142,141  

Bank of Marin Bancorp

     883       27,735  

Bank of NT Butterfield & Son Ltd.

     2,941       76,554  

Bank of Princeton

     386       6,944  

Bank OZK

     7,369       177,224  

Bank7 Corp.

     125       1,239  

BankFinancial Corp.

     1,007       7,341  

BankUnited, Inc.

     5,359       107,930  

Bankwell Financial Group, Inc.

     342       5,096  

Banner Corp.

     1,390       49,248  

Bar Harbor Bankshares

     913       18,150  

Baycom Corp.(a)

     919       9,447  

BCB Bancorp, Inc.

     694       5,587  

BOK Financial Corp.

     1,825       101,652  

Boston Private Financial Holdings, Inc.

     4,308       25,353  

Bridge Bancorp, Inc.

     1,249       22,594  

Bryn Mawr Bank Corp.

     1,311       34,138  

Business First Bancshares, Inc.

     693       9,453  

Byline Bancorp, Inc.

     1,534       19,881  

C&F Financial Corp.

     146       4,285  

Cadence BanCorp

     5,144       40,175  

California Bancorp, Inc.(a)

     457       5,991  

Cambridge Bancorp

     356       19,292  

Camden National Corp.

     937       29,694  

Capital Bancorp, Inc.(a)

     264       2,804  

Capital City Bank Group, Inc.

     884       16,646  

Capstar Financial Holdings, Inc.

     1,072       10,881  
 

 

 

SCHEDULES OF INVESTMENTS

   23

Schedule of Investments  (continued)

July 31, 2020

   

iShares Russell Small/Mid-Cap Index Fund

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Banks (continued)  

Carter Bank & Trust

     1,293     $ 9,116  

Cathay General Bancorp

     4,890       118,240  

CB Financial Services, Inc.

     295       5,104  

CBTX, Inc.

     1,164       18,380  

Central Pacific Financial Corp.

     715       11,125  

Central Valley Community Bancorp

     698       9,172  

Century Bancorp, Inc., Class A

     157       10,933  

Chemung Financial Corp.

     272       7,347  

ChoiceOne Financial Services, Inc.

     400       11,400  

CIT Group, Inc.

     5,647       107,124  

Citizens & Northern Corp.

     890       15,753  

Citizens Holding Co.

     270       5,821  

City Holding Co.

     1,108       69,206  

Civista Bancshares, Inc.

     1,055       13,852  

CNB Financial Corp.

     964       15,742  

Coastal Financial Corp.(a)

     381       5,094  

Codorus Valley Bancorp, Inc.

     558       6,557  

Colony Bankcorp, Inc.

     304       3,244  

Columbia Banking System, Inc.

     4,204       121,622  

Comerica, Inc.

     8,285       319,138  

Commerce Bancshares, Inc.

     5,897       337,662  

Community Bank System, Inc.

     2,633       148,054  

Community Bankers Trust Corp.

     1,006       5,191  

Community Financial Corp.

     814       18,331  

Community Trust Bancorp, Inc.

     1,000       30,610  

ConnectOne Bancorp, Inc.

     2,221       30,628  

County Bancorp, Inc.

     307       5,698  

CrossFirst Bankshares, Inc.(a)(b)

     2,931       26,877  

Cullen/Frost Bankers, Inc.

     3,333       240,176  

Customers Bancorp, Inc.(a)

     2,707       32,078  

CVB Financial Corp.

     7,728       139,645  

Delmar Bancorp

     646       3,760  

Eagle Bancorp Montana, Inc.

     411       6,350  

Eagle Bancorp, Inc.

     1,363       40,999  

East West Bancorp, Inc.

     8,313       288,129  

Enterprise Bancorp, Inc.

     520       11,180  

Enterprise Financial Services Corp.

     1,489       43,270  

Equity Bancshares, Inc., Class A(a)

     729       10,308  

Esquire Financial Holdings, Inc.(a)

     330       5,132  

Evans Bancorp, Inc.

     193       4,256  

Farmers & Merchants Bancorp, Inc./Archbold

     529       11,368  

Farmers National Banc Corp.

     1,941       20,982  

FB Financial Corp.

     1,032       26,223  

Fidelity D&D Bancorp, Inc.

     254       11,598  

Financial Institutions, Inc.

     1,131       16,705  

First Bancorp, Inc.

     776       15,629  

First BanCorp, Puerto Rico

     11,430       62,179  

First Bancorp/Southern Pines

     1,920       39,667  

First Bancshares, Inc.

     1,244       24,768  

First Bank/Hamilton

     786       5,133  

First Busey Corp.

     3,335       57,028  

First Business Financial Services, Inc.

     336       4,996  

First Capital, Inc.

     226       12,093  

First Choice Bancorp

     535       8,095  

First Citizens BancShares, Inc., Class A

     387       164,812  

First Commonwealth Financial Corp.

     5,243       41,262  

First Community Bancshares, Inc.

     1,115       21,809  

First Community Corp.

     450       6,030  

First Financial Bancorp

     4,073       56,676  

First Financial Bankshares, Inc.

     7,632       228,349  

First Financial Corp.

     869       29,051  

First Foundation, Inc.

     2,508       38,548  

First Guaranty Bancshares, Inc.

     384       4,527  

First Hawaiian, Inc.

     7,567       131,514  
Security   Shares     Value  
Banks (continued)  

First Horizon National Corp.

     33,497     $ 310,517  

First Internet Bancorp

     483       7,076  

First Interstate Bancsystem, Inc., Class A

     2,489       72,455  

First Merchants Corp.

     3,285       80,253  

First Mid Bancshares, Inc.

     1,117       27,266  

First Midwest Bancorp, Inc.

     6,221       75,492  

First Northwest Bancorp

     423       4,336  

First of Long Island Corp.

     1,666       24,840  

First Savings Financial Group, Inc.

     113       4,803  

First United Corp.

     412       4,454  

First Western Financial, Inc.(a)

     373       5,263  

FNB Corp.

     18,939       140,338  

FNCB Bancorp, Inc.

     991       5,540  

Franklin Financial Network, Inc.

     781       20,618  

Franklin Financial Services Corp.

     294       7,091  

Fulton Financial Corp.

     9,149       88,745  

FVCBankcorp, Inc.(a)

     594       5,857  

German American Bancorp, Inc.

     1,488       42,319  

Glacier Bancorp, Inc.

     5,686       200,773  

Great Southern Bancorp, Inc.

     654       23,590  

Great Western Bancorp, Inc.

     2,314       30,082  

Guaranty Bancshares, Inc.

     399       10,813  

Hancock Whitney Corp.

     5,026       95,796  

Hanmi Financial Corp.

     814       7,513  

HarborOne Bancorp, Inc.(a)

     3,159       27,357  

Hawthorn Bancshares, Inc.

     314       5,187  

HBT Financial, Inc.

     587       7,056  

Heartland Financial USA, Inc.

     2,034       63,542  

Heritage Commerce Corp.

     3,774       25,588  

Heritage Financial Corp.

     1,541       29,148  

Home BancShares, Inc.

     9,085       148,358  

HomeTrust Bancshares, Inc.

     876       12,632  

Hope Bancorp, Inc.

     4,942       41,661  

Horizon Bancorp

     2,298       23,233  

Howard Bancorp, Inc.(a)

     621       5,906  

Independent Bank Corp.

     3,285       143,193  

Independent Bank Group, Inc.

     2,133       93,703  

International Bancshares Corp.

     3,496       106,348  

Investar Holding Corp.

     724       9,651  

Investors Bancorp, Inc.

     14,904       121,020  

Lakeland Bancorp, Inc.

     2,903       29,553  

Lakeland Financial Corp.

     1,414       62,584  

Landmark Bancorp Inc/Manhattan

     246       5,068  

LCNB Corp.

     699       8,751  

Level One Bancorp, Inc.

     336       5,433  

Live Oak Bancshares, Inc.

     1,664       28,305  

Macatawa Bank Corp.

     2,222       15,998  

Mackinac Financial Corp.

     391       3,558  

MainStreet Bancshares, Inc.(a)

     295       3,814  

Mercantile Bank Corp.

     1,072       22,823  

Meridian Corp.(a)

     328       4,927  

Metrocity Bankshares, Inc.

     851       11,471  

Metropolitan Bank Holding Corp.(a)

     484       14,317  

Mid Penn Bancorp, Inc.

     516       9,918  

Middlefield Banc Corp.

     353       6,227  

Midland States Bancorp, Inc.

     1,389       19,571  

MidWestOne Financial Group, Inc.

     972       17,574  

MVB Financial Corp.

     703       9,294  

National Bank Holdings Corp., Class A

     1,196       33,225  

National Bankshares, Inc.

     350       8,778  

NBT Bancorp, Inc.

     1,797       53,533  

Nicolet Bankshares, Inc.(a)

     575       32,211  

Northeast Bank(a)

     309       5,883  

Northrim BanCorp, Inc.

     325       7,482  
 

 

 

24  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (continued)

July 31, 2020

   

iShares Russell Small/Mid-Cap Index Fund

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Banks (continued)  

Norwood Financial Corp.

     265     $ 6,418  

Oak Valley Bancorp

     300       3,840  

OFG Bancorp

     2,710       35,447  

Ohio Valley Banc Corp.

     200       3,940  

Old National Bancorp

     9,602       134,332  

Old Second Bancorp, Inc.

     2,326       19,352  

Origin Bancorp, Inc.

     1,387       32,927  

Orrstown Financial Services, Inc.

     493       6,705  

Pacific Premier Bancorp, Inc.

     5,038       105,848  

PacWest Bancorp

     6,732       123,027  

Park National Corp.

     840       72,038  

Parke Bancorp, Inc.

     468       5,471  

PCB Bancorp

     756       6,955  

Peapack Gladstone Financial Corp.

     1,175       19,129  

Penns Woods Bancorp, Inc.

     318       6,424  

People’s United Financial, Inc.

     24,918       268,865  

Peoples Bancorp of North Carolina, Inc.

     237       3,922  

Peoples Bancorp, Inc.

     1,308       26,252  

Peoples Financial Services Corp.

     376       13,502  

Pinnacle Financial Partners, Inc.

     4,287       169,851  

Plumas Bancorp

     290       6,052  

Popular, Inc.

     4,985       184,993  

Preferred Bank

     921       34,307  

Premier Financial Bancorp, Inc.

     602       6,381  

Professional Holding Corp., Class A(a)

     149       1,685  

Prosperity Bancshares, Inc.

     5,270       292,801  

QCR Holdings, Inc.

     1,011       30,209  

RBB Bancorp

     994       12,723  

Red River Bancshares, Inc.

     271       10,851  

Reliant Bancorp Inc.

     897       13,231  

Renasant Corp.

     3,183       73,941  

Republic Bancorp, Inc., Class A

     679       20,519  

Republic First Bancorp, Inc.(a)

     2,161       5,035  

Richmond Mutual BanCorp., Inc.

     732       8,440  

S&T Bancorp, Inc.

     2,774       59,641  

Salisbury Bancorp, Inc.

     154       5,607  

Sandy Spring Bancorp, Inc.

     2,819       65,175  

SB Financial Group, Inc.

     426       5,291  

SB One Bancorp

     585       10,828  

Seacoast Banking Corp. of Florida(a)

     2,913       54,997  

Select Bancorp, Inc.(a)

     788       6,154  

ServisFirst Bancshares, Inc.

     2,850       104,281  

Shore Bancshares, Inc.

     727       6,739  

Sierra Bancorp

     947       16,648  

Signature Bank

     3,063       314,049  

Silvergate Capital Corp., Class A(a)(b)

     903       12,344  

Simmons First National Corp., Class A

     5,637       93,518  

SmartFinancial, Inc.

     880       12,549  

South Plains Financial, Inc.

     568       7,588  

South State Corp.

     4,000       190,640  

Southern First Bancshares, Inc.(a)

     519       12,664  

Southern National Bancorp of Virginia, Inc.

     1,386       11,670  

Southside Bancshares, Inc.

     1,733       48,004  

Spirit of Texas Bancshares, Inc.(a)

     780       9,087  

Sterling Bancorp

     12,387       139,354  

Stock Yards Bancorp, Inc.

     1,321       51,638  

Summit Financial Group, Inc.

     760       11,430  

Synovus Financial Corp.

     8,449       170,247  

TCF Financial Corp.

     9,171       252,111  

Texas Capital Bancshares, Inc.(a)

     2,915       96,836  

Tompkins Financial Corp.

     839       54,141  

TowneBank

     4,125       72,765  

Trico Bancshares

     1,476       41,328  

TriState Capital Holdings, Inc.(a)

     1,756       23,267  
Security   Shares     Value  
Banks (continued)  

Triumph Bancorp, Inc.(a)

     1,778     $ 46,584  

Trustmark Corp.

     4,174       93,998  

UMB Financial Corp.

     2,782       138,544  

Umpqua Holdings Corp.

     12,854       139,466  

United Bankshares, Inc.

     7,351       193,478  

United Community Banks, Inc.

     3,272       58,667  

United Security Bancshares

     1,160       7,262  

Unity Bancorp, Inc.

     440       5,504  

Univest Financial Corp.

     1,934       29,571  

Valley National Bancorp

     24,672       184,300  

Veritex Holdings, Inc.

     2,717       45,428  

Washington Trust Bancorp, Inc.

     1,041       34,707  

Webster Financial Corp.

     5,174       141,095  

WesBanco, Inc.

     3,884       77,020  

West BanCorp., Inc.

     1,048       17,198  

Westamerica BanCorp

     1,474       88,971  

Western Alliance Bancorp

     5,653       203,225  

Wintrust Financial Corp.

     3,628       155,278  

Zions Bancorp. NA

     9,589       311,355  
   

 

 

  
    13,396,953  
Beverages — 0.3%  

Boston Beer Co., Inc., Class A(a)(b)

     510       413,325  

Celsius Holdings, Inc.(a)

     1,969       28,885  

Coca-Cola Consolidated, Inc.

     268       61,522  

Craft Brew Alliance, Inc.(a)(b)

     567       8,397  

MGP Ingredients, Inc.(b)

     757       27,457  

National Beverage Corp.(a)(b)

     691       44,328  

New Age Beverages Corp.(b)

     5,979       13,572  

Primo Water Corp.(b)

     9,454       134,341  
   

 

 

  
    731,827  
Biotechnology — 6.0%  

89bio, Inc.(a)

     127       3,858  

Abeona Therapeutics, Inc.(a)

     2,644       7,535  

ACADIA Pharmaceuticals, Inc.(a)(b)

     6,496       270,039  

Acceleron Pharma, Inc.(a)

     2,938       291,361  

ADMA Biologics, Inc.(a)

     3,350       11,960  

Aduro Biotech, Inc.(a)

     3,291       9,281  

Adverum Biotechnologies, Inc.(a)

     4,162       69,797  

Aeglea BioTherapeutics, Inc.(a)

     2,391       16,378  

Affimed NV(a)

     4,645       16,397  

Agenus, Inc.(a)

     8,302       25,238  

Agios Pharmaceuticals, Inc.(a)

     3,714       168,318  

Aimmune Therapeutics, Inc.(a)(b)

     2,655       35,073  

Akcea Therapeutics, Inc.(a)(b)

     973       10,547  

Akebia Therapeutics, Inc.(a)

     7,421       82,893  

Akero Therapeutics, Inc.(a)

     639       22,435  

Albireo Pharma, Inc.(a)(b)

     784       22,156  

Alector, Inc.(a)

     2,636       41,306  

Alkermes PLC(a)

     9,576       172,464  

Allakos, Inc.(a)(b)

     1,387       104,122  

Allogene Therapeutics, Inc.(a)

     2,935       107,626  

AMAG Pharmaceuticals, Inc.(a)

     1,473       14,075  

Amicus Therapeutics, Inc.(a)

     15,052       217,501  

AnaptysBio, Inc.(a)

     1,213       21,785  

Anavex Life Sciences Corp.(a)(b)

     3,342       14,103  

Apellis Pharmaceuticals, Inc.(a)

     3,419       88,518  

Applied Genetic Technologies Corp.(a)

     1,341       7,080  

Applied Therapeutics, Inc.(a)

     753       19,427  

Aprea Therapeutics, Inc.(a)

     553       15,169  

Aptinyx, Inc.(a)

     1,401       5,282  

Aravive, Inc.(a)

     686       4,041  

Arcturus Therapeutics Holdings Ltd.(a)

     736       38,441  

Arcus Biosciences, Inc.(a)

     1,828       35,975  
 

 

 

SCHEDULES OF INVESTMENTS

   25

Schedule of Investments  (continued)

July 31, 2020

   

iShares Russell Small/Mid-Cap Index Fund

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Biotechnology (continued)  

Arcutis Biotherapeutics, Inc.(a)(b)

     494     $ 13,190  

Ardelyx, Inc.(a)

     4,121       23,284  

Arena Pharmaceuticals, Inc.(a)

     3,369       206,823  

Arrowhead Pharmaceuticals, Inc.(a)

     5,895       253,898  

Atara Biotherapeutics, Inc.(a)

     3,287       40,726  

Athenex, Inc.(a)

     4,364       46,302  

Athersys, Inc.(a)

     12,315       31,526  

Atreca, Inc., Class A(a)

     1,217       15,760  

AVEO Pharmaceuticals, Inc.(a)

     841       3,583  

Avid Bioservices, Inc.(a)

     3,564       26,445  

Avrobio, Inc.(a)

     1,762       29,866  

Axcella Health, Inc.(a)

     889       3,992  

Beam Therapeutics, Inc.(a)(b)

     678       13,113  

Beyondspring, Inc.(a)

     642       7,081  

BioCryst Pharmaceuticals, Inc.(a)

     8,962       36,475  

Biohaven Pharmaceutical Holding Co. Ltd.(a)

     2,788       178,544  

Biospecifics Technologies Corp.(a)(b)

     373       23,372  

Bioxcel Therapeutics, Inc.(a)

     597       27,080  

Black Diamond Therapeutics, Inc.(a)

     740       20,587  

Bluebird Bio, Inc.(a)(b)

     3,704       224,833  

Blueprint Medicines Corp.(a)

     3,087       225,907  

BrainStorm Cell Therapeutics, Inc.(a)(b)

     1,503       20,366  

Bridgebio Pharma, Inc.(a)

     4,370       122,972  

Cabaletta Bio, Inc.(a)

     849       9,704  

Calithera Biosciences, Inc.(a)

     3,773       17,733  

Calyxt, Inc.(a)(b)

     478       2,108  

CareDx, Inc.(a)(b)

     2,445       81,541  

CASI Pharmaceuticals, Inc.(a)

     3,905       7,537  

Castle Biosciences, Inc.(a)

     722       27,956  

Catabasis Pharmaceuticals, Inc.(a)

     1,034       5,977  

Catalyst Biosciences, Inc.(a)

     1,015       5,187  

Catalyst Pharmaceuticals, Inc.(a)

     5,721       24,600  

CEL-SCI Corp.(a)(b)

     2,228       27,872  

Cellular Biomedicine Group, Inc.(a)

     603       7,942  

Centogene NV(a)

     346       4,394  

Checkpoint Therapeutics, Inc.(a)

     1,158       2,606  

ChemoCentryx, Inc.(a)

     2,665       140,472  

Chiasma, Inc.(a)

     2,155       9,417  

Chimerix, Inc.(a)

     3,328       10,350  

Cidara Therapeutics, Inc.(a)

     1,880       6,862  

Clovis Oncology, Inc.(a)(b)

     4,130       23,913  

Cohbar, Inc.(a)

     2,014       3,001  

Coherus Biosciences, Inc.(a)

     3,334       58,645  

Concert Pharmaceuticals, Inc.(a)(b)

     1,705       15,805  

Constellation Pharmaceuticals, Inc.(a)

     1,525       41,007  

Contra GTX, Inc.(b)(c)

     23       47  

ContraFect Corp.(a)

     781       4,342  

Corbus Pharmaceuticals Holdings, Inc.(a)

     3,727       23,368  

Cortexyme, Inc.(a)(b)

     899       35,825  

Crinetics Pharmaceuticals, Inc.(a)(b)

     1,546       21,458  

Cue Biopharma, Inc.(a)

     1,564       29,575  

Cyclerion Therapeutics, Inc.(a)

     984       3,759  

Cytokinetics, Inc.(a)

     3,193       69,033  

CytomX Therapeutics, Inc.(a)(b)

     2,816       19,740  

Deciphera Pharmaceuticals, Inc.(a)

     2,252       104,425  

Denali Therapeutics, Inc.(a)

     3,577       83,773  

Dermtech, Inc.(a)

     462       4,893  

Dicerna Pharmaceuticals, Inc.(a)

     3,702       79,593  

Dyadic International, Inc.(a)

     1,100       9,548  

Dynavax Technologies Corp.(a)(b)

     5,331       43,234  

Eagle Pharmaceuticals, Inc.(a)

     647       30,014  

Editas Medicine, Inc.(a)(b)

     3,165       92,924  

Eidos Therapeutics, Inc.(a)

     659       26,426  

Eiger Biopharmaceuticals, Inc.(a)

     1,515       15,226  
Security   Shares     Value  
Biotechnology (continued)  

Emergent Biosolutions, Inc.(a)

     2,653     $ 295,120  

Enanta Pharmaceuticals, Inc.(a)

     1,112       50,985  

Enochian Biosciences, Inc.(a)

     782       3,011  

Epizyme, Inc.(a)

     5,084       70,363  

Esperion Therapeutics, Inc.(a)(b)

     1,523       57,310  

Evelo Biosciences, Inc.(a)(b)

     541       2,061  

Exelixis, Inc.(a)

     17,943       414,304  

Exicure, Inc.(a)

     3,361       7,529  

Fate Therapeutics, Inc.(a)

     3,567       111,540  

Fennec Pharmaceuticals, Inc.(a)

     1,219       10,294  

FibroGen, Inc.(a)

     4,952       200,407  

Five Prime Therapeutics, Inc.(a)

     1,464       8,638  

Flexion Therapeutics, Inc.(a)(b)

     1,989       26,991  

Fortress Biotech, Inc.(a)

     3,272       9,080  

Frequency Therapeutics, Inc.(a)

     1,606       33,951  

G1 Therapeutics, Inc.(a)(b)

     2,035       29,853  

Galectin Therapeutics, Inc.(a)(b)

     2,234       5,831  

Galera Therapeutics, Inc.(a)

     524       3,647  

Genprex, Inc.(a)(b)

     1,610       5,426  

Geron Corp.(a)(b)

     11,413       18,147  

Global Blood Therapeutics, Inc.(a)(b)

     3,506       236,585  

GlycoMimetics, Inc.(a)

     1,412       5,563  

Gossamer Bio, Inc.(a)

     2,833       33,769  

Gritstone Oncology, Inc.(a)

     2,023       6,484  

Halozyme Therapeutics, Inc.(a)

     8,313       226,030  

Harpoon Therapeutics, Inc.(a)

     601       6,617  

Heron Therapeutics, Inc.(a)(b)

     5,002       81,483  

Homology Medicines, Inc.(a)

     1,934       25,432  

Hookipa Pharma, Inc.(a)(b)

     883       8,530  

iBio, Inc.(a)(b)

     3,305       14,674  

Ideaya Biosciences, Inc.(a)

     686       8,650  

IGM Biosciences, Inc.(a)

     400       20,104  

Immunic, Inc.(a)(b)

     326       5,607  

ImmunoGen, Inc.(a)

     9,858       40,516  

Immunomedics, Inc.(a)(b)

     12,167       513,812  

Immunovant, Inc.(a)

     1,078       24,374  

Inovio Pharmaceuticals, Inc.(a)(b)

     8,454       164,346  

Insmed, Inc.(a)

     5,762       150,503  

Intellia Therapeutics, Inc.(a)(b)

     2,502       44,561  

Intercept Pharmaceuticals, Inc.(a)(b)

     1,477       67,410  

Invitae Corp.(a)(b)

     6,840       199,728  

Ionis Pharmaceuticals, Inc.(a)

     7,786       448,162  

Iovance Biotherapeutics, Inc.(a)(b)

     7,747       225,205  

Ironwood Pharmaceuticals, Inc.(a)

     9,108       83,520  

IVERIC bio, Inc.(a)

     2,545       10,205  

Jounce Therapeutics, Inc.(a)

     663       3,037  

Kadmon Holdings, Inc.(a)

     9,496       34,755  

KalVista Pharmaceuticals, Inc.(a)

     663       6,517  

Karuna Therapeutics, Inc.(a)

     943       77,137  

Karyopharm Therapeutics, Inc.(a)

     3,994       64,104  

Keros Therapeutics, Inc.(a)

     393       12,615  

Kezar Life Sciences, Inc.(a)

     1,483       6,481  

Kindred Biosciences, Inc.(a)

     1,751       5,761  

Kiniksa Pharmaceuticals Ltd., Class A(a)(b)

     1,088       21,238  

Kodiak Sciences, Inc.(a)(b)

     1,656       76,722  

Krystal Biotech, Inc.(a)

     725       29,935  

Kura Oncology, Inc.(a)(b)

     3,029       49,797  

La Jolla Pharmaceutical Co.(a)(b)

     861       3,427  

Lexicon Pharmaceuticals, Inc.(a)(b)

     1,794       3,480  

Ligand Pharmaceuticals, Inc.(a)

     829       97,142  

LogicBio Therapeutics, Inc.(a)

     379       2,971  

MacroGenics, Inc.(a)

     2,815       71,501  

Madrigal Pharmaceuticals, Inc.(a)

     503       51,613  

Magenta Therapeutics, Inc.(a)

     858       6,023  
 

 

 

26  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (continued)

July 31, 2020

   

iShares Russell Small/Mid-Cap Index Fund

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Biotechnology (continued)  

MannKind Corp.(a)

     13,102     $ 20,439  

Marker Therapeutics, Inc.(a)(b)

     1,128       2,267  

MediciNova, Inc.(a)

     1,987       12,359  

MEI Pharma, Inc.(a)

     5,661       15,709  

MeiraGTx Holdings PLC(a)

     1,176       15,276  

Mersana Therapeutics, Inc.(a)

     2,588       51,449  

Minerva Neurosciences, Inc.(a)(b)

     1,952       6,803  

Mirati Therapeutics, Inc.(a)

     2,168       263,000  

Mirum Pharmaceuticals, Inc.(a)

     259       5,719  

Molecular Templates, Inc.(a)

     1,368       15,007  

Momenta Pharmaceuticals, Inc.(a)

     6,964       205,368  

Morphic Holding, Inc.(a)(b)

     783       17,625  

Mustang Bio, Inc.(a)

     1,547       4,765  

Myriad Genetics, Inc.(a)

     3,958       47,773  

NantKwest, Inc.(a)(b)

     1,622       18,134  

Natera, Inc.(a)

     4,138       198,707  

Neoleukin Therapeutics, Inc.(a)(b)

     1,675       16,214  

Neubase Therapeutics, Inc.(a)

     974       7,242  

Neurocrine Biosciences, Inc.(a)

     5,439       654,638  

NextCure, Inc.(a)

     869       7,751  

Novavax, Inc.(a)

     3,419       489,259  

Nymox Pharmaceutical Corp.(a)

     2,224       7,161  

Oncocyte Corp.(a)

     2,482       3,351  

OPKO Health, Inc.(a)(b)

     22,707       116,941  

Organogenesis Holdings, Inc.(a)(b)

     528       1,943  

Orgenesis, Inc.(a)

     1,020       5,630  

ORIC Pharmaceuticals, Inc.(a)

     491       9,854  

Ovid therapeutics, Inc.(a)

     2,415       15,577  

Oyster Point Pharma, Inc.(a)

     274       6,129  

Passage Bio, Inc.(a)

     773       12,090  

PDL BioPharma, Inc.(a)

     6,989       22,225  

Pfenex, Inc.(a)

     2,000       14,180  

PhaseBio Pharmaceuticals, Inc.(a)(b)

     571       2,284  

Pieris Pharmaceuticals, Inc.(a)

     2,480       6,374  

Precigen, Inc.(a)(b)

     3,885       16,356  

Precision BioSciences, Inc.(a)

     2,601       16,542  

Prevail Therapeutics, Inc.(a)

     950       14,222  

Principia Biopharma, Inc.(a)

     1,675       140,030  

Protagonist Therapeutics, Inc.(a)

     1,290       20,292  

Prothena Corp. PLC(a)

     1,951       23,880  

PTC Therapeutics, Inc.(a)

     3,518       162,989  

Puma Biotechnology, Inc.(a)

     1,922       19,816  

Radius Health, Inc.(a)

     2,595       32,567  

Rapt Therapeutics, Inc.(a)

     623       13,457  

Recro Pharma, Inc.(a)

     960       3,926  

REGENXBIO, Inc.(a)

     1,980       65,538  

Replimune Group, Inc.(a)

     983       19,631  

Retrophin, Inc.(a)

     2,373       47,175  

Revolution Medicines, Inc.(a)

     1,018       24,554  

Rhythm Pharmaceuticals, Inc.(a)

     1,922       36,941  

Rigel Pharmaceuticals, Inc.(a)

     10,638       24,467  

Rocket Pharmaceuticals, Inc.(a)(b)

     2,053       48,307  

Rubius Therapeutics, Inc.(a)

     1,843       9,049  

Sage Therapeutics, Inc.(a)

     3,163       144,138  

Sangamo Therapeutics, Inc.(a)

     6,811       73,763  

Sarepta Therapeutics, Inc.(a)(b)

     4,390       673,953  

Savara, Inc.(a)

     1,819       3,620  

Scholar Rock Holding Corp.(a)

     1,300       14,677  

Selecta Biosciences, Inc.(a)

     3,826       9,106  

Seres Therapeutics, Inc.(a)

     2,903       10,857  

Soleno Therapeutics, Inc.(a)

     2,648       4,555  

Solid Biosciences, Inc.(a)

     943       2,480  

Sorrento Therapeutics, Inc.(a)(b)

     10,017       89,352  

Spectrum Pharmaceuticals, Inc.(a)(b)

     6,822       20,398  
Security   Shares     Value  
Biotechnology (continued)  

Spero Therapeutics, Inc.(a)

     981     $ 11,478  

SpringWorks Therapeutics, Inc.(a)

     1,206       51,412  

Stoke Therapeutics, Inc.(a)

     717       18,061  

Strongbridge Biopharma PLC(a)

     1,475       4,971  

Sutro Biopharma, Inc.(a)

     1,034       8,034  

Syndax Pharmaceuticals, Inc.(a)

     1,546       21,814  

Syros Pharmaceuticals, Inc.(a)

     2,362       22,415  

TCR2 Therapeutics, Inc.(a)

     930       15,578  

TG Therapeutics, Inc.(a)

     5,509       107,866  

Translate Bio, Inc.(a)

     2,883       43,793  

Turning Point Therapeutics, Inc.(a)

     1,585       93,880  

Twist Bioscience Corp.(a)(b)

     1,703       95,436  

Tyme Technologies, Inc.(a)(b)

     3,461       4,119  

Ultragenyx Pharmaceutical, Inc.(a)(b)

     3,372       263,556  

United Therapeutics Corp.(a)

     2,576       287,147  

UNITY Biotechnology, Inc.(a)

     1,938       18,275  

UroGen Pharma Ltd.(a)

     1,084       23,946  

Vanda Pharmaceuticals, Inc.(a)

     3,016       30,401  

Vaxart, Inc.(a)

     2,512       23,588  

VBI Vaccines, Inc.(a)

     9,803       39,898  

Veracyte, Inc.(a)

     2,856       101,874  

Verastem, Inc.(a)

     9,309       12,474  

Vericel Corp.(a)

     2,576       42,478  

Viela Bio, Inc.(a)(b)

     1,139       41,699  

Viking Therapeutics, Inc.(a)(b)

     3,796       26,648  

Vir Biotechnology, Inc.(a)

     2,635       125,848  

Voyager Therapeutics, Inc.(a)

     1,522       16,849  

X4 Pharmaceuticals, Inc.(a)

     810       6,010  

XBiotech, Inc.(a)(b)

     641       9,320  

Xencor, Inc.(a)

     3,168       95,325  

XOMA Corp.(a)(b)

     347       5,795  

Y-mAbs Therapeutics, Inc.(a)

     1,706       59,932  

Zentalis Pharmaceuticals, Inc.(a)

     583       20,114  

ZIOPHARM Oncology, Inc.(a)

     12,300       36,531  
   

 

 

  
    15,310,798  
Building Products — 1.9%  

AAON, Inc.(b)

     2,340       138,645  

Advanced Drainage Systems, Inc.

     2,802       137,298  

Allegion PLC

     5,402       537,283  

Alpha Pro Tech Ltd.(a)

     711       15,478  

Ameresco, Inc., Class A(a)

     1,399       38,724  

American Woodmark Corp.(a)

     1,152       92,874  

AO Smith Corp.

     7,744       372,796  

Apogee Enterprises, Inc.

     1,500       32,385  

Armstrong World Industries, Inc.

     2,725       194,129  

Builders FirstSource, Inc.(a)

     7,031       166,564  

Caesarstone Ltd.

     1,162       13,328  

Cornerstone Building Brands, Inc.(a)(b)

     2,278       12,916  

CSW Industrials, Inc.

     815       54,434  

Fortune Brands Home & Security, Inc.

     8,102       619,803  

Gibraltar Industries, Inc.(a)

     1,869       96,665  

Griffon Corp.

     2,124       48,576  

Insteel Industries, Inc.

     1,155       21,529  

JELD-WEN Holding, Inc.(a)

     3,905       76,538  

Lennox International, Inc.

     2,019       541,375  

Masonite International Corp.(a)

     1,406       118,596  

Owens Corning

     6,341       383,440  

Patrick Industries, Inc.

     1,276       81,600  

PGT Innovations, Inc.(a)

     3,211       54,812  

Quanex Building Products Corp.

     1,894       26,611  

Resideo Technologies, Inc.(a)(b)

     7,629       101,313  

Simpson Manufacturing Co., Inc.

     2,473       238,793  

Trex Co., Inc.(a)

     3,396       473,165  
 

 

 

SCHEDULES OF INVESTMENTS

   27

Schedule of Investments  (continued)

July 31, 2020

   

iShares Russell Small/Mid-Cap Index Fund

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Building Products (continued)  

UFP Industries, Inc.

     3,566     $ 207,613  
   

 

 

  
    4,897,283  
Capital Markets — 1.6%  

Affiliated Managers Group, Inc.

     2,684       184,632  

Ares Management Corp., Class A

     5,772       230,534  

Arlington Asset Investment Corp., Class A

     1,624       4,417  

Artisan Partners Asset Management, Inc., Class A

     3,105       112,494  

AssetMark Financial Holdings(a)

     953       26,541  

Associated Capital Group, Inc., Class A

     121       4,893  

B. Riley Financial, Inc.

     1,208       30,816  

BGC Partners, Inc., Class A

     18,403       50,976  

Blucora, Inc.(a)

     2,731       32,199  

BrightSphere Investment Group PLC(a)

     3,160       42,470  

Calamos Asset Management, Inc.(c)

     339       —  

Carlyle Group, Inc.

     6,650       189,326  

Cohen & Steers, Inc.

     1,395       83,951  

Cowen, Inc., Class A

     1,693       27,884  

Diamond Hill Investment Group, Inc.

     163       18,587  

Donnelley Financial Solutions, Inc.(a)

     1,549       13,399  

Eaton Vance Corp.

     6,531       236,030  

Evercore, Inc., Class A

     2,450       135,485  

Federated Hermes, Inc.

     5,538       145,982  

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

     2,122       78,408  

GAMCO Investors, Inc., Class A

     288       3,396  

Greenhill & Co., Inc.

     761       9,117  

Hamilton Lane, Inc., Class A

     1,268       91,600  

Hannon Armstrong Sustainable Infrastructure Capital, Inc.

     4,031       141,206  

Houlihan Lokey, Inc.

     2,518       137,986  

Invesco Ltd.

     22,288       223,772  

Lazard Ltd., Class A

     5,793       169,851  

Legg Mason, Inc.

     4,906       245,251  

LPL Financial Holdings, Inc.

     4,616       364,756  

Moelis & Co., Class A

     3,017       89,877  

Oppenheimer Holdings, Inc., Class A

     470       9,959  

Piper Sandler Cos

     1,018       63,024  

PJT Partners, Inc., Class A

     1,349       72,212  

Pzena Investment Management, Inc., Class A

     654       3,427  

Safeguard Scientifics, Inc.

     1,114       6,339  

Sculptor Capital Management, Inc.

     1,201       14,928  

SEI Investments Co.

     6,767       354,117  

Siebert Financial Corp.(a)

     466       1,612  

Silvercrest Asset Management Group, Inc., Class A

     714       7,854  

Stifel Financial Corp.

     3,825       185,436  

Stonex Group, Inc.(a)

     925       48,544  

Virtu Financial, Inc., Class A

     3,574       88,635  

Virtus Investment Partners, Inc.

     421       57,222  

Waddell & Reed Financial, Inc., Class A

     3,766       54,946  

Westwood Holdings Group, Inc.

     391       4,442  

WisdomTree Investments, Inc.

     8,377       30,157  
   

 

 

  
    4,128,690  
Chemicals — 2.3%  

Advanced Emissions Solutions, Inc.

     699       2,908  

AdvanSix, Inc.(a)

     1,379       17,169  

AgroFresh Solutions, Inc.(a)

     1,675       4,087  

Albemarle Corp.

     6,180       509,603  

American Vanguard Corp.

     1,787       24,053  

Ashland Global Holdings, Inc.

     3,280       247,574  

Avient Corp.

     5,235       125,116  

Axalta Coating Systems Ltd.(a)

     12,043       267,355  

Balchem Corp.

     1,907       191,196  

Cabot Corp.

     3,594       131,109  

CF Industries Holdings, Inc.

     12,699       397,860  

Chase Corp.

     426       42,839  
Security   Shares     Value  
Chemicals (continued)  

Chemours Co.

     9,830     $ 182,150  

Codexis, Inc.(a)

     3,118       36,886  

Element Solutions, Inc.(a)

     12,511       135,869  

Ferro Corp.(a)

     4,495       52,547  

FutureFuel Corp.

     1,643       21,655  

GCP Applied Technologies, Inc.(a)(b)

     2,838       64,763  

Hawkins, Inc.

     579       29,836  

HB Fuller Co.

     2,938       133,209  

Huntsman Corp.

     11,922       220,557  

Ingevity Corp.(a)

     2,373       138,773  

Innospec, Inc.

     1,405       105,614  

Intrepid Potash, Inc.(a)(b)

     4,093       3,709  

Koppers Holdings, Inc.(a)

     1,190       29,952  

Kraton Corp.(a)

     1,938       25,485  

Kronos Worldwide, Inc.

     1,095       12,308  

Landec Corp.(a)

     1,196       11,290  

Livent Corp.(a)

     8,374       52,505  

Marrone Bio Innovations, Inc.(a)

     4,139       4,594  

Minerals Technologies, Inc.

     1,989       93,244  

Mosaic Co.

     20,895       281,456  

NewMarket Corp.

     393       147,300  

Olin Corp.

     8,207       92,247  

Orion Engineered Carbons SA

     3,632       37,046  

PQ Group Holdings, Inc.(a)

     2,294       28,147  

Quaker Chemical Corp.

     754       146,276  

Rayonier Advanced Materials, Inc.

     3,593       10,456  

RPM International, Inc.

     7,394       603,276  

Scotts Miracle-Gro Co.

     2,369       375,652  

Sensient Technologies Corp.

     2,706       141,280  

Stepan Co.

     1,227       133,988  

Trecora Resources(a)

     1,690       9,717  

Tredegar Corp.

     1,634       25,948  

Trinseo SA

     2,441       52,970  

Tronox Holdings PLC, Class A(a)

     5,287       40,287  

Valvoline, Inc.

     10,975       225,207  

Westlake Chemical Corp.

     2,058       112,161  

WR Grace & Co.

     3,431       158,272  
   

 

 

  
    5,937,501  
Commercial Services & Supplies — 1.4%  

ABM Industries, Inc.

     4,036       144,892  

ACCO Brands Corp.

     5,075       33,089  

ADT, Inc.

     6,401       55,113  

Advanced Disposal Services, Inc.(a)

     4,200       126,672  

BrightView Holdings, Inc.(a)(b)

     2,883       34,942  

Brink’s Co.

     2,868       127,196  

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

     2,622       145,285  

CECO Environmental Corp.(a)

     2,022       13,547  

Cimpress PLC(a)

     1,014       101,400  

Clean Harbors, Inc.(a)

     2,959       176,356  

Covanta Holding Corp.

     7,011       68,988  

Deluxe Corp.

     2,382       67,244  

Encore Capital Group, Inc.(a)

     1,841       67,252  

Ennis, Inc.

     1,512       26,158  

Harsco Corp.(a)

     4,412       70,415  

Healthcare Services Group, Inc.

     4,267       111,753  

Heritage-Crystal Clean, Inc.(a)

     737       10,266  

Herman Miller, Inc.

     3,398       79,615  

HNI Corp.

     2,511       74,577  

IAA, Inc.(a)

     7,942       344,286  

Interface, Inc.

     4,469       35,663  

KAR Auction Services, Inc.

     8,185       123,839  

Kimball International, Inc., Class B

     2,253       24,648  

Knoll, Inc.

     2,918       34,170  

McGrath RentCorp

     1,630       94,572  
 

 

 

28  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (continued)

July 31, 2020

   

iShares Russell Small/Mid-Cap Index Fund

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Commercial Services & Supplies (continued)  

MSA Safety, Inc.

     2,148     $ 254,602  

NL Industries, Inc.

     244       893  

Pitney Bowes, Inc.

     12,029       40,177  

Quad/Graphics, Inc.

     1,346       4,186  

SP Plus Corp.(a)

     1,371       21,785  

Steelcase, Inc., Class A

     4,991       53,553  

Stericycle, Inc.(a)

     5,398       326,228  

Sykes Enterprises, Inc.(a)

     2,197       60,330  

Team, Inc.(a)

     1,408       5,562  

Tetra Tech, Inc.

     3,161       280,223  

UniFirst Corp.

     916       170,816  

US Ecology, Inc.

     1,798       62,355  

Viad Corp.

     1,268       18,335  

VSE Corp.

     593       16,681  
   

 

 

  
    3,507,664  
Communications Equipment — 0.9%  

Acacia Communications, Inc.(a)

     2,224       151,188  

ADTRAN, Inc.

     2,667       33,124  

Applied Optoelectronics, Inc.(a)

     1,269       18,032  

Bel Fuse, Inc., Class B

     434       5,295  

CalAmp Corp.(a)

     1,662       13,097  

Calix, Inc.(a)

     2,780       57,018  

Cambium Networks Corp.(a)

     195       2,359  

Casa Systems, Inc.(a)

     1,337       7,501  

Ciena Corp.(a)

     8,957       533,031  

Clearfield, Inc.(a)

     451       8,407  

CommScope Holding Co., Inc.(a)

     11,102       103,027  

Comtech Telecommunications Corp.

     1,372       22,528  

DASAN Zhone Solutions, Inc.(a)

     819       8,280  

Digi International, Inc.(a)

     1,791       21,707  

EchoStar Corp., Class A(a)

     3,155       86,131  

Extreme Networks, Inc.(a)

     6,212       28,265  

Genasys, Inc.(a)

     1,880       7,896  

Harmonic, Inc.(a)(b)

     5,129       28,620  

Infinera Corp.(a)

     8,937       70,513  

Inseego Corp.(a)(b)

     3,373       45,468  

InterDigital, Inc.

     1,778       106,716  

KVH Industries, Inc.(a)

     703       5,708  

Loral Space & Communications, Inc.

     616       11,193  

Lumentum Holdings, Inc.(a)

     4,410       409,380  

NETGEAR, Inc.(a)

     1,666       51,229  

PC-Tel, Inc.

     1,047       6,858  

Plantronics, Inc.

     1,992       39,820  

Resonant, Inc.(a)

     2,823       7,791  

Ribbon Communications, Inc.(a)

     4,176       18,374  

ViaSat, Inc.(a)(b)

     3,318       125,951  

Viavi Solutions, Inc.(a)

     13,052       180,509  
   

 

 

  
    2,215,016  
Construction & Engineering — 1.1%  

AECOM(a)

     9,038       327,085  

Aegion Corp.(a)

     1,843       28,419  

API Group Corp.(a)(b)(d)

     7,969       111,008  

Arcosa, Inc.

     3,014       127,251  

Argan, Inc.

     893       38,310  

Comfort Systems USA, Inc.

     2,059       102,353  

Concrete Pumping Holdings, Inc.(a)

     1,248       4,667  

Construction Partners, Inc., Class A(a)

     1,179       19,512  

Dycom Industries, Inc.(a)

     1,798       77,008  

EMCOR Group, Inc.

     3,108       212,898  

Fluor Corp.

     7,272       74,102  

Granite Construction, Inc.

     2,706       45,894  

Great Lakes Dredge & Dock Corp.(a)

     3,414       28,541  

HC2 Holdings, Inc.(a)

     2,492       6,753  
Security   Shares     Value  
Construction & Engineering (continued)  

IES Holdings, Inc.(a)

     371     $ 8,841  

Jacobs Engineering Group, Inc.(b)

     7,273       620,750  

KBR, Inc.

     8,486       188,729  

MasTec, Inc.(a)(b)

     3,396       135,093  

MYR Group, Inc.(a)

     961       35,240  

Northwest Pipe Co.(a)(b)

     482       11,978  

NV5 Global, Inc.(a)(b)

     635       36,030  

Primoris Services Corp.

     2,761       44,259  

Quanta Services, Inc.

     8,011       320,200  

Sterling Construction Co., Inc.(a)(b)

     1,718       17,695  

Tutor Perini Corp.(a)(b)

     2,453       28,872  

WillScot Mobile Mini Holdings Corp.(a)

     10,264       154,576  
   

 

 

  
    2,806,064  
Construction Materials — 0.1%  

Eagle Materials, Inc.

     2,522       202,340  

Forterra, Inc.(a)

     1,279       16,614  

Summit Materials, Inc., Class A(a)

     6,733       99,110  

United States Lime & Minerals, Inc.

     103       9,291  

US Concrete, Inc.(a)

     974       24,175  
   

 

 

  
    351,530  
Consumer Discretionary — 0.1%  

Acushnet Holdings Corp.

     1,986       75,567  

At Home Group, Inc.(a)

     2,837       35,236  

Camping World Holdings, Inc., Class A(b)

     1,940       71,043  
   

 

 

  
    181,846  
Consumer Finance — 0.7%  

Ally Financial, Inc.

     22,062       443,446  

Atlanticus Holdings Corp.(a)

     357       2,917  

Credit Acceptance Corp.(a)(b)

     596       278,892  

Curo Group Holdings Corp.

     1,262       8,821  

Enova International, Inc.(a)

     1,586       25,519  

Ezcorp, Inc., Class A(a)

     3,073       17,578  

FirstCash, Inc.

     2,469       142,313  

Green Dot Corp., Class A(a)

     3,023       153,236  

I3 Verticals, Inc., Class A(a)

     896       21,665  

LendingClub Corp.(a)

     3,527       18,411  

Navient Corp.

     11,194       89,104  

Nelnet, Inc., Class A

     975       56,550  

OneMain Holdings, Inc.

     3,782       108,543  

Oportun Financial Corp.(a)

     1,105       15,802  

PRA Group, Inc.(a)

     2,765       109,383  

Regional Management Corp.(a)

     350       5,317  

Santander Consumer USA Holdings, Inc.

     4,403       80,839  

SLM Corp.

     21,553       145,914  

World Acceptance Corp.(a)

     292       21,696  
   

 

 

  
    1,745,946  
Containers & Packaging — 1.4%  

AptarGroup, Inc.

     3,720       428,544  

Ardagh Group SA

     1,258       17,121  

Avery Dennison Corp.

     4,819       546,185  

Berry Global Group, Inc.(a)

     7,794       389,622  

Crown Holdings, Inc.(a)

     7,543       539,928  

Graphic Packaging Holding Co.

     16,466       229,536  

Greif, Inc., Class A

     1,414       49,193  

Greif, Inc., Class B

     337       13,241  

Myers Industries, Inc.

     2,090       31,475  

O-I Glass, Inc.

     8,944       93,375  

Packaging Corp. of America

     5,450       523,854  

Ranpak Holdings Corp.(a)

     1,645       13,440  

Sealed Air Corp.

     9,236       329,541  

Silgan Holdings, Inc.

     4,492       171,819  

Sonoco Products Co.

     5,844       302,369  
 

 

 

SCHEDULES OF INVESTMENTS

   29

Schedule of Investments  (continued)

July 31, 2020

   

iShares Russell Small/Mid-Cap Index Fund

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Containers & Packaging (continued)  

UFP Technologies, Inc.(a)

     418     $ 18,033  
   

 

 

  
    3,697,276  
Distributors — 0.3%  

Core-Mark Holding Co., Inc.

     2,807       74,442  

Funko, Inc., Class A(a)

     1,116       6,183  

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

     193       745  

Pool Corp.

     2,273       719,859  

VOXX International Corp.(a)

     1,135       7,400  

Weyco Group, Inc.

     265       4,881  
   

 

 

  
    813,510  
Diversified Consumer Services — 1.3%  

2U, Inc.(a)

     3,709       174,675  

Adtalem Global Education, Inc.(a)

     3,019       103,672  

American Public Education, Inc.(a)

     857       24,947  

Aspen Group, Inc.(a)

     1,045       9,196  

Bright Horizons Family Solutions, Inc.(a)

     3,404       365,045  

Carriage Services, Inc.

     1,056       23,348  

Chegg, Inc.(a)

     7,111       575,778  

Collectors Universe, Inc.

     599       22,798  

Franchise Group, Inc.

     1,088       26,656  

frontdoor, Inc.(a)

     5,058       212,411  

Graham Holdings Co., Class B

     245       97,601  

Grand Canyon Education, Inc.(a)

     2,777       246,431  

H&R Block, Inc.

     11,071       160,530  

Houghton Mifflin Harcourt Co.(a)

     7,048       20,862  

K12, Inc.(a)

     2,281       104,447  

Laureate Education, Inc., Class A(a)

     6,925       87,809  

Matthews International Corp., Class A

     1,741       37,606  

OneSpaWorld Holdings Ltd.

     2,225       12,371  

Regis Corp.(a)(b)

     1,187       9,116  

Service Corp. International

     10,167       440,841  

ServiceMaster Global Holdings, Inc.(a)

     7,825       319,964  

Strategic Education, Inc.

     1,306       164,830  

Universal Technical Institute, Inc.(a)

     1,669       12,401  

Vivint Smart Home, Inc.(a)

     3,981       61,108  

WW International, Inc.(a)(b)

     2,666       68,730  
   

 

 

  
    3,383,173  
Diversified Financial Services — 0.7%  

Alerus Financial Corp.

     903       17,500  

Cannae Holdings, Inc.(a)

     5,010       188,777  

FactSet Research Systems, Inc.

     2,149       744,199  

GWG Holdings, Inc.(a)

     159       1,081  

Jefferies Financial Group, Inc.

     13,065       211,653  

Marlin Business Services Corp.

     464       3,406  

Morgan Group Holding Co.(a)

     3       34  

Morningstar, Inc.

     1,284       215,763  

PICO Holdings, Inc.(a)

     400       3,248  

SWK Holdings Corp.(a)

     357       4,505  

Tiptree, Inc.

     1,087       5,489  

Voya Financial, Inc.

     7,464       368,722  
   

 

 

  
    1,764,377  
Diversified Telecommunication Services — 0.4%  

8x8, Inc.(a)(b)

     5,807       92,331  

Alaska Communications Systems Group, Inc.

     3,280       7,478  

Anterix, Inc.(a)

     784       34,167  

ATN International, Inc.

     618       35,615  

Bandwidth, Inc., Class A(a)

     1,095       158,534  

Cincinnati Bell, Inc.(a)

     2,234       33,532  

Cogent Communications Holdings, Inc.

     2,533       228,249  

Consolidated Communications Holdings, Inc.(a)

     4,185       30,551  

IDT Corp., Class B(a)

     677       4,407  

Iridium Communications, Inc.(a)

     7,131       195,318  
Security   Shares     Value  
Diversified Telecommunication Services (continued)  

Ooma, Inc.(a)

     1,323     $ 20,030  

ORBCOMM, Inc.(a)

     4,190       17,640  

Vonage Holdings Corp.(a)

     13,270       158,577  
   

 

 

  
    1,016,429  
Education Services — 0.0%  

Perdoceo Education Corp.(a)

     4,024       57,946  
   

 

 

  
Electric Utilities — 1.1%  

ALLETE, Inc.

     3,258       193,199  

Hawaiian Electric Industries, Inc.

     6,125       222,092  

IDACORP, Inc.

     2,881       268,653  

MGE Energy, Inc.

     1,995       132,328  

OGE Energy Corp.

     11,683       384,371  

Otter Tail Corp.

     2,649       101,324  

PG&E Corp.(a)

     56,173       525,218  

Pinnacle West Capital Corp.

     6,545       543,759  

PNM Resources, Inc.

     4,541       191,766  

Portland General Electric Co.

     5,133       226,519  

Spark Energy, Inc., Class A

     861       6,501  

Unitil Corp.

     871       37,584  
   

 

 

  
    2,833,314  
Electrical Equipment — 1.3%  

Acuity Brands, Inc.

     2,367       234,570  

Allied Motion Technologies, Inc.

     341       12,856  

American Superconductor Corp.(a)

     1,537       14,294  

Atkore International Group, Inc.(a)

     2,705       72,142  

AZZ, Inc.

     1,440       45,475  

Bloom Energy Corp., Class A(a)(b)

     4,848       58,952  

Brady Corp., Class A

     2,773       127,475  

Encore Wire Corp.

     1,130       56,715  

EnerSys

     2,431       163,509  

Franklin Electric Co., Inc.

     2,625       141,881  

FuelCell Energy, Inc.(a)(b)

     12,111       27,007  

Generac Holdings, Inc.(a)

     3,569       562,403  

GrafTech International Ltd.

     3,582       21,743  

Hubbell, Inc.

     3,148       424,886  

LSI Industries, Inc.

     1,465       8,585  

nVent Electric PLC

     8,948       162,496  

Orion Energy Systems, Inc.(a)

     1,574       6,233  

Plug Power, Inc.(a)

     19,350       149,188  

Powell Industries, Inc.

     437       11,602  

Preformed Line Products Co.

     144       7,093  

Regal-Beloit Corp.

     2,452       225,510  

Sensata Technologies Holding PLC(a)

     8,844       335,895  

Sunrun, Inc.(a)

     6,617       242,778  

Thermon Group Holdings, Inc.(a)

     1,933       26,192  

TPI Composites, Inc.(a)

     1,738       44,458  

Ultralife Corp.(a)

     647       4,594  

Vertiv Holdings Co.(a)

     11,948       173,246  

Vicor Corp.(a)(b)

     1,010       82,285  
   

 

 

  
    3,444,063  
Electronic Equipment, Instruments & Components — 2.6%  

Agilysys, Inc.(a)

     1,021       21,400  

Akoustis Technologies, Inc.(a)(b)

     1,978       15,705  

Arlo Technologies, Inc.(a)

     4,033       17,019  

Arrow Electronics, Inc.(a)

     4,606       329,882  

Avnet, Inc.

     6,191       165,424  

Badger Meter, Inc.

     1,665       104,229  

Belden, Inc.

     2,523       79,727  

Benchmark Electronics, Inc.

     2,022       41,168  

Cognex Corp.(b)

     9,682       647,435  

Coherent, Inc.(a)

     1,486       206,301  

CTS Corp.

     1,845       36,642  
 

 

 

30  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (continued)

July 31, 2020

   

iShares Russell Small/Mid-Cap Index Fund

(Percentages shown are based on Net Assets)

 

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

Daktronics, Inc.

     1,696     $ 7,072  

Dolby Laboratories, Inc., Class A

     3,742       260,443  

ePlus, Inc.(a)

     730       54,414  

Fabrinet(a)

     2,096       152,232  

FARO Technologies, Inc.(a)

     1,052       62,941  

Fitbit, Inc., Series A(a)

     13,611       89,016  

FLIR Systems, Inc.

     7,727       321,907  

II-VI, Inc.(a)

     5,813       294,835  

Insight Enterprises, Inc.(a)

     1,995       99,431  

Intellicheck, Inc.(a)

     926       6,778  

IntriCon Corp.(a)

     333       3,596  

Iteris, Inc.(a)

     2,183       10,129  

Itron, Inc.(a)(b)

     2,451       170,492  

Jabil, Inc.

     8,724       304,119  

Kimball Electronics, Inc.(a)

     1,238       16,441  

Knowles Corp.(a)

     5,072       77,399  

Littelfuse, Inc.

     1,417       251,730  

Luna Innovations, Inc.(a)

     1,652       9,367  

Mesa Laboratories, Inc.

     241       57,103  

Methode Electronics, Inc.

     2,111       59,530  

MTS Systems Corp.

     1,198       22,223  

Napco Security Technologies, Inc.(a)

     758       19,996  

National Instruments Corp.

     7,648       271,504  

nLight, Inc.(a)(b)

     1,966       45,552  

Novanta, Inc.(a)

     2,015       208,915  

OSI Systems, Inc.(a)

     1,150       81,604  

PAR Technology Corp.(a)(b)

     918       28,238  

PC Connection, Inc.

     673       29,410  

Plexus Corp.(a)

     1,649       122,504  

Powerfleet, Inc.(a)

     1,550       6,944  

Research Frontiers, Inc.(a)

     1,490       5,036  

Rogers Corp.(a)

     1,157       137,903  

Sanmina Corp.(a)

     3,845       114,120  

ScanSource, Inc.(a)

     1,478       33,920  

SYNNEX Corp.

     2,456       306,361  

Trimble, Inc.(a)

     14,678       653,318  

TTM Technologies, Inc.(a)

     5,761       70,918  

Universal Display Corp.

     2,542       443,452  

Vishay Intertechnology, Inc.

     8,552       134,181  

Vishay Precision Group, Inc.(a)

     757       19,266  

Wrap Technologies, Inc.(a)(b)

     783       7,673  
   

 

 

  
    6,736,945  
Energy Equipment & Services — 0.4%  

Archrock, Inc.

     7,657       50,996  

Aspen Aerogels, Inc.(a)

     1,141       7,245  

Bristow Group, Inc.(a)

     265       4,243  

Cactus, Inc., Class A

     2,629       59,468  

ChampionX Corp.(a)

     10,641       101,196  

Dril-Quip, Inc.(a)

     2,005       66,746  

Exterran Corp.(a)

     1,275       6,337  

Frank’s International NV(a)(b)

     9,182       20,935  

Helix Energy Solutions Group, Inc.(a)

     8,283       34,706  

Helmerich & Payne, Inc.

     6,007       107,105  

Liberty Oilfield Services, Inc., Class A

     3,721       21,024  

Matrix Service Co.(a)

     1,299       11,373  

Nabors Industries Ltd.(b)

     326       13,826  

National Energy Services Reunited Corp.(a)

     1,224       8,188  

National Oilwell Varco, Inc.

     23,745       273,305  

Newpark Resources, Inc.(a)

     5,916       11,181  

NexTier Oilfield Solutions Inc.(a)

     9,659       24,341  

Oceaneering International, Inc.(a)

     5,828       32,753  

Oil States International, Inc.(a)

     3,076       13,780  

Patterson-UTI Energy, Inc.

     9,710       37,626  
Security   Shares     Value  
Energy Equipment & Services (continued)  

ProPetro Holding Corp.(a)

     4,779     $ 25,663  

RPC, Inc.(a)

     3,965       11,776  

SEACOR Holdings, Inc.(a)

     1,109       32,250  

Select Energy Services, Inc., Class A(a)

     2,934       13,027  

Solaris Oilfield Infrastructure, Inc., Class A

     1,565       11,362  

Tidewater, Inc.(a)(b)

     1,952       12,141  

Transocean Ltd.(a)

     34,165       69,697  
   

 

 

  
    1,082,290  
Entertainment — 0.1%  

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

     2,575       10,403  

Glu Mobile, Inc.(a)

     7,409       69,941  

Madison Square Garden Entertainment Corp.(a)

     1,075       76,175  

World Wrestling Entertainment, Inc., Class A

     2,802       130,601  
   

 

 

  
    287,120  
Equity Real Estate Investment Trusts (REITs) — 8.4%  

Acadia Realty Trust

     4,848       58,370  

Agree Realty Corp.

     3,121       209,013  

Alexander’s, Inc.

     122       30,718  

Alpine Income Property Trust, Inc.

     394       5,532  

American Assets Trust, Inc.

     2,885       77,895  

American Campus Communities, Inc.

     8,164       290,965  

American Finance Trust, Inc.

     6,337       46,292  

American Homes 4 Rent, Class A

     15,074       437,146  

Americold Realty Trust

     11,704       472,256  

Anworth Mortgage Asset Corp.

     6,659       12,053  

Apartment Investment & Management Co., Class A

     8,761       340,102  

Apollo Commercial Real Estate Finance, Inc.

     8,735       81,235  

Apple Hospitality REIT, Inc.

     13,309       117,385  

Arbor Realty Trust, Inc.

     5,872       59,836  

Ares Commercial Real Estate Corp.

     1,785       16,297  

Armada Hoffler Properties, Inc.

     3,407       32,843  

ARMOUR Residential REIT, Inc.

     3,566       33,306  

Blackstone Mortgage Trust, Inc., Class A

     8,084       194,582  

Bluerock Residential Growth REIT, Inc.

     1,532       11,092  

Brandywine Realty Trust

     9,776       105,874  

Brixmor Property Group, Inc.

     17,587       202,426  

BRT Apartments Corp.

     862       8,896  

Camden Property Trust

     5,494       498,910  

Capstead Mortgage Corp.

     5,946       36,568  

Catchmark Timber Trust, Inc., Class A

     2,829       27,611  

Chatham Lodging Trust

     2,888       15,046  

Cherry Hill Mortgage Investment Corp.

     1,090       10,061  

Chimera Investment Corp.

     12,015       108,015  

CIM Commercial Trust Corp.

     546       5,569  

City Office REIT, Inc.

     2,726       23,580  

Clipper Realty, Inc.

     722       4,823  

Colony Capital, Inc.

     28,410       54,547  

Columbia Property Trust, Inc.

     6,576       78,649  

Community Healthcare Trust, Inc.

     1,205       55,105  

CoreCivic, Inc.

     6,877       61,274  

CorEnergy Infrastructure Trust, Inc.

     617       5,405  

CorePoint Lodging, Inc.

     1,741       9,732  

CoreSite Realty Corp.

     2,359       304,429  

Corporate Office Properties Trust

     6,866       181,812  

Cousins Properties, Inc.

     8,738       268,431  

CubeSmart

     11,297       335,182  

CyrusOne, Inc.

     6,728       561,250  

DiamondRock Hospitality Co.

     11,270       52,067  

Diversified Healthcare Trust

     12,682       49,396  

Douglas Emmett, Inc.

     9,784       285,106  

Easterly Government Properties, Inc.

     4,613       112,788  

EastGroup Properties, Inc.

     2,256       299,281  

Ellington Residential Mortgage REIT

     486       5,370  
 

 

 

SCHEDULES OF INVESTMENTS

   31

Schedule of Investments  (continued)

July 31, 2020

   

iShares Russell Small/Mid-Cap Index Fund

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Equity Real Estate Investment Trusts (REITs) (continued)  

Empire State Realty Trust, Inc., Class A

     8,519     $ 56,225  

EPR Properties

     4,698       134,504  

Equity Commonwealth

     6,913       218,243  

Equity LifeStyle Properties, Inc.

     10,127       691,877  

Farmland Partners, Inc.

     1,418       9,798  

Federal Realty Investment Trust

     4,456       339,993  

First Industrial Realty Trust, Inc.

     7,395       324,788  

Four Corners Property Trust, Inc.

     4,031       101,581  

Franklin Street Properties Corp.

     5,863       30,781  

Gaming and Leisure Properties, Inc.

     11,974       433,579  

Geo Group, Inc.

     6,788       72,156  

Getty Realty Corp.

     1,882       55,764  

Gladstone Commercial Corp.

     1,989       36,200  

Gladstone Land Corp.

     1,023       16,450  

Global Net Lease, Inc.

     5,224       86,980  

Healthcare Realty Trust, Inc.

     7,907       231,675  

Healthcare Trust of America, Inc., Class A

     12,711       350,951  

Hersha Hospitality Trust

     1,865       8,877  

Highwoods Properties, Inc.

     6,131       235,063  

Hudson Pacific Properties, Inc.

     8,949       210,928  

Independence Realty Trust, Inc.

     5,422       62,353  

Industrial Logistics Properties Trust

     3,663       77,326  

Innovative Industrial Properties, Inc.

     952       99,227  

Investors Real Estate Trust

     696       50,321  

Iron Mountain, Inc.

     16,661       469,674  

iStar, Inc.

     4,243       49,261  

JBG SMITH Properties

     6,964       202,026  

Jernigan Capital, Inc.

     1,146       16,055  

Kilroy Realty Corp.

     6,724       391,807  

Kimco Realty Corp.

     24,414       272,216  

Kite Realty Group Trust

     4,685       46,241  

Lamar Advertising Co., Class A

     5,057       332,397  

Lexington Realty Trust

     15,249       176,888  

Life Storage, Inc.

     2,662       261,222  

LTC Properties, Inc.

     2,256       83,810  

Macerich Co.(b)

     8,186       62,459  

Mack-Cali Realty Corp.

     5,216       75,215  

Medical Properties Trust, Inc.

     30,329       610,523  

MFA Financial, Inc.

     26,646       70,079  

Monmouth Real Estate Investment Corp.

     5,471       78,946  

National Health Investors, Inc.

     2,630       163,060  

National Retail Properties, Inc.

     10,121       358,789  

National Storage Affiliates Trust

     3,513       108,271  

New Residential Investment Corp.

     23,644       187,497  

New Senior Investment Group, Inc.

     4,049       13,767  

New York Mortgage Trust, Inc.

     21,521       56,385  

NexPoint Residential Trust, Inc.

     1,237       47,290  

Office Properties Income Trust

     2,699       67,880  

Omega Healthcare Investors, Inc.

     13,289       430,298  

One Liberty Properties, Inc.

     895       15,188  

Orchid Island Capital, Inc.

     4,048       20,807  

Outfront Media, Inc.

     8,971       129,272  

Paramount Group, Inc.

     11,037       78,694  

Park Hotels & Resorts, Inc.

     13,754       113,746  

Pebblebrook Hotel Trust

     7,516       79,670  

PennyMac Mortgage Investment Trust(g)

     5,594       105,447  

Physicians Realty Trust

     12,057       217,508  

Piedmont Office Realty Trust, Inc., Class A

     7,234       117,263  

Plymouth Industrial REIT, Inc.

     793       10,523  

PotlatchDeltic Corp.

     3,985       170,598  

Preferred Apartment Communities, Inc., Class A

     2,917       21,090  

PS Business Parks, Inc.

     1,141       157,401  

QTS Realty Trust, Inc., Class A

     3,527       253,768  

Rayonier, Inc.

     7,807       216,878  
Security   Shares     Value  
Equity Real Estate Investment Trusts (REITs) (continued)  

Redwood Trust, Inc.

     6,340     $ 45,204  

Regency Centers Corp.

     9,940       407,838  

Retail Opportunity Investments Corp.

     7,649       83,145  

Retail Properties of America, Inc., Class A

     12,279       78,094  

Retail Value, Inc.

     1,101       13,939  

Rexford Industrial Realty, Inc.

     6,778       318,092  

RLJ Lodging Trust

     9,399       75,286  

RPT Realty

     4,726       29,396  

Ryman Hospitality Properties, Inc.

     2,880       92,218  

Sabra Health Care REIT, Inc.

     12,420       183,071  

Safehold, Inc.

     980       49,421  

Saul Centers, Inc.

     702       21,558  

Seritage Growth Properties, Class A(a)

     1,829       17,028  

Service Properties Trust

     8,555       57,318  

SITE Centers Corp.

     8,781       64,365  

SL Green Realty Corp.

     4,431       206,041  

Spirit Realty Capital, Inc.

     6,123       210,999  

STAG Industrial, Inc.

     8,762       285,641  

Starwood Property Trust, Inc.

     15,995       239,125  

STORE Capital Corp.

     13,241       313,679  

Summit Hotel Properties, Inc.

     5,834       30,220  

Sunstone Hotel Investors, Inc.

     12,517       93,627  

Tanger Factory Outlet Centers, Inc.(b)

     5,341       34,343  

Taubman Centers, Inc.

     3,437       133,081  

Terreno Realty Corp.

     3,789       230,220  

UMH Properties, Inc.

     2,049       25,203  

Uniti Group, Inc.

     11,809       116,909  

Universal Health Realty Income Trust

     754       52,463  

Urban Edge Properties

     6,637       69,556  

Urstadt Biddle Properties, Inc., Class A

     1,549       15,196  

VEREIT, Inc.

     63,704       414,713  

VICI Properties, Inc.

     27,611       599,435  

Washington Real Estate Investment Trust

     4,729       105,740  

Weingarten Realty Investors

     7,665       130,765  

Whitestone REIT

     2,346       15,484  

Xenia Hotels & Resorts, Inc.

     6,657       52,990  
   

 

 

  
    21,481,073  
Food & Staples Retailing — 0.7%  

Andersons, Inc.

     1,902       27,046  

BJ’s Wholesale Club Holdings, Inc.(a)

     8,013       320,921  

Casey’s General Stores, Inc.

     2,192       348,944  

Chefs’ Warehouse, Inc.(a)

     1,318       15,197  

Grocery Outlet Holding Corp.(a)

     4,155       182,778  

HF Foods Group, Inc.(a)(b)

     2,066       18,305  

Ingles Markets, Inc., Class A

     866       34,856  

Natural Grocers by Vitamin Cottage, Inc.

     452       7,155  

Performance Food Group Co.(a)

     7,738       216,819  

PriceSmart, Inc.

     1,331       87,007  

Rite Aid Corp.(a)

     3,147       47,709  

SpartanNash Co.

     2,099       44,131  

Sprouts Farmers Market, Inc.(a)

     6,776       178,751  

U.S. Foods Holding Corp.(a)

     13,046       264,834  

United Natural Foods, Inc.(a)

     3,059       60,721  

Village Super Market, Inc., Class A

     675       17,044  

Weis Markets, Inc.

     574       28,597  
   

 

 

  
    1,900,815  
Food Products — 1.6%  

Alico, Inc.

     216       6,519  

B&G Foods, Inc.

     3,674       106,215  

Beyond Meat, Inc.(a)(b)

     3,035       382,106  

Bridgford Foods Corp.(a)

     72       1,159  

Bunge Ltd.

     8,170       354,905  

Cal-Maine Foods, Inc.(a)

     1,848       81,210  
 

 

 

32  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (continued)

July 31, 2020

   

iShares Russell Small/Mid-Cap Index Fund

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Food Products (continued)  

Calavo Growers, Inc.(b)

     1,111     $ 64,182  

Darling Ingredients, Inc.(a)

     9,185       256,537  

Farmer Bros Co.(a)

     808       4,024  

Flowers Foods, Inc.

     11,492       261,443  

Fresh Del Monte Produce, Inc.

     1,814       40,960  

Freshpet, Inc.(a)

     2,294       220,339  

Griffin Industrial Realty, Inc.

     144       7,085  

Hain Celestial Group, Inc.(a)

     4,697       159,604  

Hostess Brands, Inc.(a)(b)

     6,808       86,325  

Ingredion, Inc.

     3,943       341,070  

J&J Snack Foods Corp.

     858       105,646  

John B Sanfilippo & Son, Inc.

     657       57,928  

Lamb Weston Holdings, Inc.

     8,564       514,525  

Lancaster Colony Corp.

     1,126       178,572  

Limoneira Co.

     1,018       13,723  

Pilgrim’s Pride Corp.(a)

     3,048       46,787  

Post Holdings, Inc.(a)

     3,749       332,686  

Sanderson Farms, Inc.

     1,151       128,331  

Seneca Foods Corp., Class A(a)

     299       11,715  

Simply Good Foods Co.(a)

     4,866       116,979  

Tootsie Roll Industries, Inc.

     940       29,798  

TreeHouse Foods, Inc.(a)

     3,410       149,426  
   

 

 

  
    4,059,799  
Gas Utilities — 0.7%  

Brookfield Infrastructure Corp., Class A

     2,072       94,566  

Chesapeake Utilities Corp.

     902       76,210  

National Fuel Gas Co.

     4,740       192,302  

New Jersey Resources Corp.

     5,454       169,401  

Northwest Natural Holding Co.

     1,741       93,126  

ONE Gas, Inc.

     2,981       225,662  

RGC Resources, Inc.

     365       8,468  

South Jersey Industries, Inc.

     5,817       135,711  

Southwest Gas Holdings, Inc.

     3,147       219,157  

Spire, Inc.

     2,968       183,007  

UGI Corp.

     12,219       407,381  
   

 

 

  
    1,804,991  
Health Care Equipment & Supplies — 2.6%  

Accuray, Inc.(a)(b)

     4,055       9,043  

Alphatec Holdings, Inc.(a)

     2,699       13,414  

AngioDynamics, Inc.(a)

     2,214       18,288  

Anika Therapeutics, Inc.(a)

     827       30,103  

Antares Pharma, Inc.(a)

     9,563       24,959  

Apyx Medical Corp.(a)(b)

     1,737       7,799  

Aspira Women’s Health, Inc.(a)(b)

     2,644       11,819  

AtriCure, Inc.(a)

     2,230       91,006  

Atrion Corp.

     83       51,468  

Avanos Medical, Inc.(a)

     2,767       84,864  

Axogen, Inc.(a)

     2,138       24,309  

Axonics Modulation Technologies, Inc.(a)

     1,737       73,579  

Bellerophon Therapeutics, Inc.(a)

     363       4,661  

Beyond Air, Inc.(a)(b)

     765       4,751  

BioLife Solutions, Inc.(a)(b)

     274       5,296  

BioSig Technologies, Inc.(a)

     1,220       11,004  

Cantel Medical Corp.

     2,200       103,950  

Cardiovascular Systems, Inc.(a)

     1,919       58,491  

Cerus Corp.(a)

     9,007       64,220  

Chembio Diagnostics, Inc.(a)(b)

     1,405       7,770  

Co-Diagnostics, Inc.(a)

     1,485       35,640  

CONMED Corp.

     1,552       128,102  

CryoLife, Inc.(a)

     2,188       42,469  

CryoPort, Inc.(a)(b)

     1,914       63,430  

Cutera, Inc.(a)

     1,052       14,970  

CytoSorbents Corp.(a)

     2,103       20,136  
Security   Shares     Value  
Health Care Equipment & Supplies (continued)  

Electromed, Inc.(a)

     407     $ 6,752  

Envista Holdings Corp.(a)

     9,495       207,656  

FONAR Corp.(a)

     389       9,577  

GenMark Diagnostics, Inc.(a)

     3,861       68,957  

Glaukos Corp.(a)

     2,416       105,579  

Globus Medical, Inc., Class A(a)

     4,403       212,137  

Haemonetics Corp.(a)

     2,857       250,445  

Hill-Rom Holdings, Inc.(b)

     3,905       379,644  

ICU Medical, Inc.(a)

     1,154       212,024  

Inogen, Inc.(a)

     1,057       32,450  

Integra LifeSciences Holdings Corp.(a)

     4,359       208,142  

Invacare Corp.

     1,679       11,820  

iRadimed Corp.(a)

     249       5,548  

iRhythm Technologies, Inc.(a)

     1,616       201,160  

Lantheus Holdings, Inc.(a)

     2,246       30,276  

LeMaitre Vascular, Inc.

     940       27,570  

LivaNova PLC(a)

     2,973       138,363  

Meridian Bioscience, Inc.(a)

     2,517       61,641  

Merit Medical Systems, Inc.(a)

     3,092       138,274  

Milestone Scientific, Inc.(a)(b)

     2,024       3,906  

Misonix, Inc.(a)

     828       10,292  

Natus Medical, Inc.(a)

     1,947       36,175  

Nemaura Medical, Inc.(a)

     408       2,587  

Neogen Corp.(a)

     3,101       238,064  

Nevro Corp.(a)

     1,987       264,192  

Novocure Ltd.(a)

     5,877       445,418  

NuVasive, Inc.(a)

     3,176       181,477  

Ocular Therapeutix, Inc.(a)

     2,923       22,916  

OraSure Technologies, Inc.(a)

     3,317       60,204  

Orthofix Medical, Inc.(a)

     1,103       33,873  

OrthoPediatrics Corp.(a)(b)

     690       29,111  

PAVmed, Inc.(a)

     2,075       4,129  

Pulse Biosciences, Inc.(a)(b)

     619       6,345  

Quidel Corp.(a)(b)

     2,179       615,502  

Quotient Ltd.(a)(b)

     3,446       27,017  

Repro-Med Systems, Inc.(a)

     1,399       14,592  

Retractable Technologies, Inc.(a)

     781       9,349  

Rockwell Medical, Inc.(a)

     3,392       5,834  

SeaSpine Holdings Corp.(a)

     1,503       14,083  

Shockwave Medical, Inc.(a)

     1,526       75,262  

SI-BONE, Inc.(a)

     1,460       24,966  

Sientra, Inc.(a)(b)

     2,928       11,126  

Silk Road Medical, Inc.(a)

     1,814       84,278  

Soliton, Inc.(a)(b)

     296       1,906  

STAAR Surgical Co.(a)

     2,692       156,648  

Stereotaxis, Inc.(a)

     2,517       9,690  

Surgalign Holdings, Inc.(a)(b)

     4,032       11,330  

Surmodics, Inc.(a)

     783       37,028  

Tactile Systems Technology, Inc.(a)

     1,011       41,431  

Tandem Diabetes Care, Inc.(a)

     3,468       362,267  

Tela Bio, Inc.(a)

     304       3,539  

TransMedics Group, Inc.(a)

     1,131       20,426  

Utah Medical Products, Inc.

     201       16,382  

Vapotherm, Inc.(a)

     1,091       56,994  

Varex Imaging Corp.(a)

     2,079       32,599  

Venus Concept, Inc.(a)

     1,138       3,255  

ViewRay, Inc.(a)

     7,382       20,448  

VolitionRX Ltd.(a)(b)

     1,343       4,338  

Wright Medical Group NV(a)

     7,572       227,311  

Zynex, Inc.(a)(b)

     982       18,776  
   

 

 

  
    6,558,622  
Health Care Providers & Services — 2.2%  

1Life Healthcare, Inc.(a)

     1,216       36,006  

Acadia Healthcare Co., Inc.(a)(b)

     5,043       150,332  
 

 

 

SCHEDULES OF INVESTMENTS

   33

Schedule of Investments  (continued)

July 31, 2020

   

iShares Russell Small/Mid-Cap Index Fund

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Health Care Providers & Services (continued)  

AdaptHealth Corp.(a)

     453     $ 8,824  

Addus HomeCare Corp.(a)

     790       76,164  

Amedisys, Inc.(a)

     1,854       434,133  

American Renal Associates Holdings, Inc.(a)

     816       5,263  

AMN Healthcare Services, Inc.(a)

     2,687       147,624  

Apollo Medical Holdings, Inc.(a)

     640       10,720  

Avalon GloboCare Corp.(a)

     905       1,466  

BioTelemetry, Inc.(a)(b)

     1,929       82,098  

Brookdale Senior Living, Inc.(a)

     10,656       29,517  

Chemed Corp.(b)

     909       447,401  

Community Health Systems, Inc.(a)

     4,279       21,309  

CorVel Corp.(a)

     510       40,540  

Covetrus, Inc.(a)(b)

     5,642       125,027  

Cross Country Healthcare, Inc.(a)

     1,701       11,031  

Encompass Health Corp.

     5,822       396,362  

Ensign Group, Inc.

     2,925       134,521  

Exagen, Inc.(a)

     175       2,179  

Five Star Senior Living, Inc.(a)

     1,163       5,280  

Fulgent Genetics, Inc.(a)

     563       14,835  

Guardant Health, Inc.(a)

     4,406       375,303  

Hanger, Inc.(a)

     2,103       36,718  

HealthEquity, Inc.(a)

     4,112       212,015  

InfuSystem Holdings, Inc.(a)

     826       10,085  

Integer Holdings Corp.(a)

     1,870       122,990  

Joint Corp.(a)

     878       12,678  

LHC Group, Inc.(a)

     1,772       345,735  

Magellan Health, Inc.(a)

     1,535       113,851  

MEDNAX, Inc.(a)(b)

     4,783       95,564  

Molina Healthcare, Inc.(a)(b)

     3,429       633,336  

National HealthCare Corp.

     717       42,532  

National Research Corp.

     783       44,780  

Ontrak, Inc.(a)(b)

     448       17,141  

Option Care Health, Inc.(a)

     1,816       21,393  

Owens & Minor, Inc.

     3,564       57,309  

Patterson Cos., Inc.

     5,159       137,023  

Pennant Group Inc.(a)

     1,537       38,517  

Penumbra, Inc.(a)(b)

     1,891       419,632  

PetIQ, Inc.(a)

     1,194       43,569  

Premier, Inc., Class A(a)

     3,755       131,312  

Progyny, Inc.(a)

     1,506       40,097  

Providence Service Corp.(a)

     691       55,978  

R1 RCM, Inc.(a)

     6,115       83,592  

RadNet, Inc.(a)

     2,512       39,916  

Select Medical Holdings Corp.(a)

     6,226       118,543  

Sharps Compliance Corp.(a)

     815       6,235  

Surgery Partners, Inc.(a)(b)

     1,311       20,019  

Tenet Healthcare Corp.(a)

     6,489       171,569  

Tivity Health, Inc.(a)

     2,465       32,341  

Triple-S Management Corp., Class B(a)

     1,500       29,190  

U.S. Physical Therapy, Inc.

     727       60,385  

Viemed Healthcare, Inc.(a)

     1,961       21,257  
   

 

 

  
    5,771,237  
Health Care Technology — 0.7%  

Allscripts Healthcare Solutions, Inc.(a)

     10,894       98,046  

Change Healthcare, Inc.(a)

     13,865       161,666  

Computer Programs & Systems, Inc.

     811       20,015  

Evolent Health, Inc., Class A(a)(b)

     4,530       52,775  

Health Catalyst, Inc.(a)(b)

     1,843       64,321  

HealthStream, Inc.(a)

     1,503       32,998  

HMS Holdings Corp.(a)

     5,251       170,657  

iCAD, Inc.(a)

     1,147       10,575  

Inovalon Holdings, Inc., Class A(a)

     4,199       98,802  

Inspire Medical Systems, Inc.(a)

     1,576       156,591  

Livongo Health, Inc.(a)(b)

     3,187       405,546  
Security   Shares     Value  
Health Care Technology (continued)  

NantHealth, Inc.(a)

     1,522     $ 6,849  

NextGen Healthcare, Inc.(a)

     3,177       46,448  

Omnicell, Inc.(a)

     2,552       179,380  

OptimizeRx Corp.(a)(b)

     678       9,594  

Phreesia, Inc.(a)

     1,580       47,495  

Schrodinger, Inc.(a)(b)

     819       59,279  

Simulations Plus, Inc.

     699       49,210  

Tabula Rasa HealthCare, Inc.(a)(b)

     1,169       65,698  

Vocera Communications, Inc.(a)

     1,806       55,571  
   

 

 

  
    1,791,516  
Hotels, Restaurants & Leisure — 2.2%  

Accel Entertainment, Inc., Class A(a)

     2,411       19,264  

Aramark

     13,138       277,475  

BBX Capital Corp.

     614       8,547  

Biglari Holdings, Inc., Class B(a)

     42       2,727  

BJ’s Restaurants, Inc.

     982       19,699  

Bloomin’ Brands, Inc.

     4,939       56,897  

Bluegreen Vacations Corp.

     220       1,584  

Boyd Gaming Corp.

     4,700       111,249  

Brinker International, Inc.

     2,510       67,494  

Caesars Entertainment, Inc.(a)

     8,007       248,617  

Carrols Restaurant Group, Inc.(a)

     2,399       14,730  

Century Casinos, Inc.(a)

     1,126       4,538  

Cheesecake Factory, Inc.

     2,338       56,112  

Choice Hotels International, Inc.

     1,981       166,483  

Churchill Downs, Inc.

     2,219       307,376  

Chuy’s Holdings, Inc.(a)

     809       12,871  

Cracker Barrel Old Country Store, Inc.

     1,370       151,344  

Dave & Buster’s Entertainment, Inc.(b)

     2,675       33,010  

Del Taco Restaurants, Inc.(a)

     1,896       14,504  

Denny’s Corp.(a)

     3,294       29,267  

Dine Brands Global, Inc.

     935       42,477  

Dunkin’ Brands Group, Inc.

     4,700       323,031  

El Pollo Loco Holdings, Inc.(a)

     1,165       23,020  

Everi Holdings, Inc.(a)

     4,725       26,838  

Extended Stay America, Inc.

     10,158       115,903  

Fiesta Restaurant Group, Inc.(a)

     900       5,832  

GAN Ltd.(a)

     433       8,379  

Golden Entertainment, Inc.(a)

     743       6,353  

Hilton Grand Vacations, Inc.(a)(b)

     5,586       113,396  

Hyatt Hotels Corp., Class A

     2,047       98,256  

International Game Technology PLC

     5,911       58,282  

Jack in the Box, Inc.

     1,395       114,543  

Kura Sushi USA, Inc., Class A(a)(b)

     244       2,535  

Lindblad Expeditions Holdings, Inc.(a)

     1,519       11,013  

Marcus Corp.

     1,122       15,495  

Marriott Vacations Worldwide Corp.

     2,409       203,946  

Monarch Casino & Resort, Inc.(a)(b)

     735       26,600  

Nathan’s Famous, Inc.

     139       7,079  

Noodles & Co.(a)

     1,486       10,328  

Norwegian Cruise Line Holdings Ltd.(a)

     15,146       206,591  

Papa John’s International, Inc.

     1,847       174,856  

Penn National Gaming, Inc.(a)

     7,870       266,400  

Planet Fitness, Inc., Class A(a)

     4,760       248,472  

PlayAGS, Inc.(a)

     1,064       3,596  

RCI Hospitality Holdings, Inc.(b)

     372       4,494  

Red Robin Gourmet Burgers, Inc.(a)

     533       4,658  

Red Rock Resorts, Inc., Class A

     4,530       49,649  

Ruth’s Hospitality Group, Inc.

     1,390       9,306  

Scientific Games Corp., Class A(a)

     3,273       57,507  

SeaWorld Entertainment, Inc.(a)

     3,003       43,453  

Shake Shack, Inc., Class A(a)

     2,010       97,586  

Six Flags Entertainment Corp.

     4,462       77,594  

Target Hospitality Corp.(a)

     1,352       1,933  
 

 

 

34  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (continued)

July 31, 2020

   

iShares Russell Small/Mid-Cap Index Fund

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Hotels, Restaurants & Leisure (continued)  

Texas Roadhouse, Inc.

     3,754     $ 210,937  

Twin River Worldwide Holdings, Inc.

     1,095       23,608  

Vail Resorts, Inc.(b)

     2,342       449,734  

Wendy’s Co.

     10,947       253,752  

Wingstop, Inc.(b)

     1,748       273,125  

Wyndham Destinations, Inc.

     4,789       127,387  

Wyndham Hotels & Resorts, Inc.

     5,526       244,028  
   

 

 

  
    5,645,760  
Household Durables — 2.1%  

Beazer Homes USA, Inc.(a)

     1,438       16,091  

Casper Sleep, Inc.(a)(b)

     361       3,332  

Cavco Industries, Inc.(a)

     494       98,963  

Century Communities, Inc.(a)

     1,676       59,699  

Ethan Allen Interiors, Inc.

     1,201       14,220  

GoPro, Inc., Class A(a)

     7,465       39,490  

Green Brick Partners, Inc.(a)

     1,360       18,768  

Hamilton Beach Brands Holding Co., Class A

     292       4,438  

Helen of Troy Ltd.(a)(b)

     1,481       278,798  

Hooker Furniture Corp.

     737       15,772  

Installed Building Products, Inc.(a)

     1,305       103,239  

iRobot Corp.(a)

     1,576       114,559  

KB Home

     5,029       169,176  

La-Z-Boy, Inc.

     2,611       74,309  

Legacy Housing Corp.(a)

     333       4,575  

Leggett & Platt, Inc.

     7,833       314,025  

LGI Homes, Inc.(a)

     1,273       145,262  

Lifetime Brands, Inc.

     417       2,940  

Lovesac Co.(a)(b)

     434       13,793  

M/I Homes, Inc.(a)

     1,982       82,511  

MDC Holdings, Inc.

     2,918       130,814  

Meritage Homes Corp.(a)

     2,330       231,089  

Mohawk Industries, Inc.(a)

     3,433       274,125  

NACCO Industries, Inc., Class A

     196       4,281  

Newell Brands, Inc.

     22,564       370,050  

NVR, Inc.(a)

     196       770,309  

PulteGroup, Inc.

     15,923       694,243  

Purple Innovation, Inc.(a)

     821       20,008  

Skyline Champion Corp.(a)

     3,106       87,682  

Sonos, Inc.(a)

     4,519       72,304  

Taylor Morrison Home Corp.(a)(b)

     7,249       169,989  

Tempur Sealy International, Inc.(a)

     2,855       231,112  

Toll Brothers, Inc.(b)

     6,650       254,030  

TopBuild Corp.(a)

     1,947       256,848  

TRI Pointe Group, Inc.(a)

     7,423       124,113  

Tupperware Brands Corp.

     3,171       48,929  

Turtle Beach Corp.(a)

     783       14,360  

Universal Electronics, Inc.(a)

     803       36,994  
   

 

 

  
    5,365,240  
Household Products — 0.3%  

Central Garden & Pet Co.(a)

     538       20,369  

Central Garden & Pet Co., Class A(a)

     2,260       78,309  

Energizer Holdings, Inc.

     3,710       185,982  

Oil-Dri Corp. of America

     264       9,179  

Reynolds Consumer Products, Inc.

     2,807       95,606  

Spectrum Brands Holdings, Inc.

     2,472       133,884  

WD-40 Co.

     813       159,795  
   

 

 

  
    683,124  
Independent Power and Renewable Electricity Producers — 0.6%  

Atlantic Power Corp.(a)

     5,009       9,818  

Clearway Energy, Inc., Class A

     1,967       45,064  

Clearway Energy, Inc., Class C

     4,848       118,970  

Genie Energy Ltd., Class B

     578       4,699  

NRG Energy, Inc.

     14,190       479,764  
Security   Shares     Value  
Independent Power and Renewable Electricity Producers (continued)  

Ormat Technologies, Inc.(b)

     2,278     $ 135,541  

Sunnova Energy International, Inc.(a)

     1,841       46,043  

TerraForm Power, Inc., Class A

     5,367       103,851  

Vistra Corp.

     28,545       532,650  

Vivint Solar, Inc.(a)

     2,837       57,705  
   

 

 

  
    1,534,105  
Industrial Conglomerates — 0.3%  

BWX Technologies, Inc.

     5,576       304,003  

Carlisle Cos., Inc.

     3,172       377,722  

Raven Industries, Inc.

     1,983       42,852  

Seaboard Corp.

     15       40,549  

Standex International Corp.

     734       39,306  
   

 

 

  
    804,432  
Insurance — 3.7%  

Alleghany Corp.

     825       430,914  

Ambac Financial Group, Inc.(a)

     2,574       32,947  

American Equity Investment Life Holding Co.

     4,719       120,099  

American Financial Group, Inc.

     4,393       266,963  

American National Group, Inc.

     602       44,337  

AMERISAFE, Inc.

     879       55,781  

Argo Group International Holdings Ltd.

     1,982       66,417  

Assurant, Inc.

     3,505       376,682  

Assured Guaranty Ltd.

     5,281       115,284  

Athene Holding Ltd., Class A(a)(b)

     6,662       214,850  

Axis Capital Holdings Ltd.

     4,782       191,854  

Benefytt Technologies, Inc.(a)(b)

     700       21,644  

Brighthouse Financial, Inc.(a)

     5,740       162,672  

Brown & Brown, Inc.

     13,788       626,940  

BRP Group, Inc., Class A(a)

     1,285       22,423  

Citizens, Inc.(a)(b)

     2,734       15,693  

CNO Financial Group, Inc.

     9,144       138,074  

Crawford & Co., Class A

     1,566       11,479  

Donegal Group, Inc., Class A

     535       7,479  

eHealth, Inc.(a)

     1,456       100,668  

Employers Holdings, Inc.

     1,323       43,024  

Enstar Group Ltd.(a)

     702       117,901  

Erie Indemnity Co., Class A

     1,481       311,188  

Everest Re Group Ltd.

     2,342       512,406  

FBL Financial Group, Inc., Class A

     517       17,981  

FedNat Holding Co.

     603       5,644  

First American Financial Corp.

     6,392       326,056  

Genworth Financial, Inc., Class A(a)

     28,741       58,632  

Global Indemnity Ltd.

     422       9,643  

Globe Life, Inc.(a)

     6,149       489,460  

Goosehead Insurance, Inc., Class A(a)

     741       76,568  

Greenlight Capital Re Ltd., Class A(a)

     1,515       9,787  

Hanover Insurance Group, Inc.

     2,321       236,463  

HCI Group, Inc.

     423       18,874  

Heritage Insurance Holdings, Inc.

     1,645       19,526  

Hilltop Holdings, Inc.

     4,176       81,307  

Horace Mann Educators Corp.

     2,419       90,906  

Independence Holding Co.

     253       8,364  

Investors Title Co.

     73       8,401  

James River Group Holdings Ltd.

     1,910       88,471  

Kemper Corp.

     3,647       286,362  

Kinsale Capital Group, Inc.

     1,242       242,066  

MBIA, Inc.(a)

     3,904       31,271  

Mercury General Corp.

     1,613       69,214  

National General Holdings Corp.

     4,032       137,048  

National Western Life Group, Inc., Class A

     157       30,582  

NI Holdings, Inc.(a)

     788       12,986  

Old Republic International Corp.

     17,239       277,031  

Palomar Holdings, Inc.(a)

     957       87,412  
 

 

 

SCHEDULES OF INVESTMENTS

   35

Schedule of Investments  (continued)

July 31, 2020

   

iShares Russell Small/Mid-Cap Index Fund

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Insurance (continued)  

Primerica, Inc.

     2,372     $ 283,834  

ProAssurance Corp.

     2,856       41,983  

ProSight Global, Inc.(a)

     486       3,820  

Protective Insurance Corp., Class B

     430       5,504  

Reinsurance Group of America, Inc.

     4,008       341,682  

RenaissanceRe Holdings Ltd.

     2,882       519,855  

RLI Corp.

     2,266       199,703  

Safety Insurance Group, Inc.

     1,003       75,897  

Selective Insurance Group, Inc.

     3,412       185,408  

State Auto Financial Corp.

     907       14,068  

Stewart Information Services Corp.

     984       41,279  

Third Point Reinsurance Ltd.(a)

     5,080       39,573  

Trupanion, Inc.(a)(b)

     1,701       86,020  

United Fire Group, Inc.

     1,290       32,727  

United Insurance Holdings Corp.

     1,333       9,864  

Universal Insurance Holdings, Inc.

     2,332       40,833  

Unum Group

     11,894       204,934  

W.R. Berkley Corp.

     8,202       506,474  

Watford Holdings Ltd.(a)

     889       14,588  

White Mountains Insurance Group Ltd.(b)

     186       163,704  
   

 

 

  
    9,539,524  
Interactive Media & Services — 0.5%  

Cargurus, Inc.(a)

     4,915       141,994  

Cars.com, Inc.(a)

     4,039       32,797  

ComScore, Inc.(a)

     4,020       12,060  

DHI Group, Inc.(a)

     1,960       4,900  

Eventbrite, Inc., Class A(a)

     3,624       30,876  

EverQuote, Inc., Class A(a)

     798       43,451  

Meet Group, Inc.(a)

     2,972       18,515  

QuinStreet, Inc.(a)

     2,939       34,313  

TrueCar, Inc.(a)

     6,796       25,553  

Yelp, Inc.(a)

     4,009       100,145  

Zillow Group, Inc., Class A(a)

     3,308       225,242  

Zillow Group, Inc., Class C(a)(b)

     8,035       549,514  
   

 

 

  
    1,219,360  
Internet & Direct Marketing Retail — 0.9%  

1-800-Flowers.com, Inc., Class A(a)

     1,430       40,398  

CarParts.com, Inc.(a)

     1,205       16,563  

Duluth Holdings, Inc., Class B(a)

     371       2,742  

Etsy, Inc.(a)

     6,935       820,965  

Gaia, Inc.(a)

     473       4,342  

Groupon, Inc.(a)

     1,334       20,477  

GrubHub, Inc.(a)

     5,406       390,530  

Lands’ End, Inc.(a)

     436       3,758  

Liberty TripAdvisor Holdings, Inc., Series A(a)

     5,186       12,861  

Liquidity Services, Inc.(a)

     1,389       7,153  

Magnite, Inc.(a)(b)

     5,765       34,619  

Overstock.com, Inc.(a)

     2,292       173,252  

PetMed Express, Inc.

     1,122       35,006  

Quotient Technology, Inc.(a)

     4,975       39,850  

Qurate Retail, Inc., Series A(a)

     21,843       238,307  

RealReal, Inc.(a)

     3,556       48,504  

Shutterstock, Inc.

     1,114       60,535  

Stamps.com, Inc.(a)

     982       255,595  

Stitch Fix, Inc., Class A(a)(b)

     3,202       70,924  

TripAdvisor, Inc.

     5,855       118,447  

Waitr Holdings, Inc.(a)(b)

     4,360       23,282  
   

 

 

  
    2,418,110  
IT Services — 3.0%  

Alliance Data Systems Corp.

     2,690       119,328  

Amdocs Ltd.

     7,725       479,722  

Black Knight, Inc.(a)

     8,423       631,051  

Booz Allen Hamilton Holding Corp.

     7,984       652,772  
Security   Shares     Value  
IT Services (continued)  

Brightcove, Inc.(a)

     2,468     $ 26,111  

CACI International, Inc., Class A(a)

     1,459       303,209  

Cardtronics PLC, Class A(a)(b)

     2,096       46,804  

Cass Information Systems, Inc.

     840       30,097  

Conduent, Inc.(a)

     8,436       16,113  

CoreLogic, Inc.

     4,649       316,876  

CSG Systems International, Inc.

     1,881       79,247  

DXC Technology Co.

     15,174       271,766  

Endurance International Group Holdings, Inc.(a)

     4,257       24,137  

Euronet Worldwide, Inc.(a)

     2,883       277,172  

EVERTEC, Inc.

     3,478       107,992  

Evo Payments, Inc., Class A(a)

     2,293       52,028  

ExlService Holdings, Inc.(a)

     1,922       123,123  

Fastly, Inc., Class A(a)(b)

     4,277       412,688  

Genpact Ltd.

     11,038       439,533  

GreenSky, Inc., Class A(a)

     3,565       20,124  

Grid Dynamics Holdings, Inc.(a)

     1,289       8,611  

GTT Communications, Inc.(a)(b)

     1,605       10,111  

Hackett Group, Inc.

     1,516       20,906  

Information Services Group, Inc.(a)

     2,016       4,133  

International Money Express, Inc.(a)

     929       12,523  

Limelight Networks, Inc.(a)

     6,756       42,360  

LiveRamp Holdings, Inc.(a)

     3,703       168,746  

ManTech International Corp., Class A

     1,549       107,779  

MAXIMUS, Inc.

     3,587       266,191  

MoneyGram International, Inc.(a)

     3,568       12,417  

MongoDB, Inc.(a)(b)

     2,459       563,308  

NIC, Inc.

     3,773       82,704  

Paysign, Inc.(a)

     2,298       21,463  

Perficient, Inc.(a)

     2,217       86,929  

Perspecta, Inc.

     7,921       169,509  

PFSweb, Inc.(a)

     820       6,503  

Priority Technology Holdings, Inc.(a)(b)

     223       491  

Repay Holdings Corp.(a)

     2,075       45,920  

Sabre Corp.

     15,823       119,622  

Science Applications International Corp.

     3,433       274,571  

ServiceSource International, Inc.(a)

     5,002       7,803  

StarTek, Inc.(a)

     669       3,265  

StoneCo Ltd., Class A(a)(b)

     9,125       435,354  

Switch, Inc., Class A(b)

     5,041       90,688  

Teradata Corp.(a)(b)

     6,356       133,476  

TTEC Holdings, Inc.

     1,090       51,731  

Tucows, Inc., Class A(a)(b)

     555       33,583  

Unisys Corp.(a)(b)

     3,533       42,007  

Verra Mobility Corp.(a)

     7,634       78,096  

Virtusa Corp.(a)

     1,716       69,670  

WEX, Inc.(a)

     2,562       405,744  
   

 

 

  
    7,806,107  
Leisure Products — 0.6%  

Brunswick Corp.

     4,662       312,261  

Callaway Golf Co.(b)

     5,362       102,146  

Clarus Corp.

     921       11,034  

Escalade, Inc.

     723       11,098  

Johnson Outdoors, Inc., Class A

     318       27,844  

Malibu Boats, Inc., Class A(a)

     1,177       69,184  

Marine Products Corp.

     266       3,413  

MasterCraft Boat Holdings, Inc.(a)

     1,012       20,948  

Mattel, Inc.(a)

     20,461       227,322  

Nautilus, Inc.(a)

     1,703       17,762  

Polaris, Inc.

     3,429       355,347  

Smith & Wesson Brands, Inc.(a)

     3,085       73,701  

Sturm Ruger & Co., Inc.

     995       80,963  

Vista Outdoor, Inc.(a)

     3,438       58,962  
 

 

 

36  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (continued)

July 31, 2020

   

iShares Russell Small/Mid-Cap Index Fund

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Leisure Products (continued)  

YETI Holdings, Inc.(a)

     4,391     $ 214,676  
   

 

 

  
    1,586,661  
Life Sciences Tools & Services — 2.3%  

10X Genomics, Inc., Class A(a)

     3,211       315,866  

Accelerate Diagnostics, Inc.(a)(b)

     1,742       25,311  

Adaptive Biotechnologies Corp.(a)

     4,238       158,162  

Avantor, Inc.(a)(b)

     24,370       538,090  

Bio-Techne Corp.

     2,240       616,358  

Bruker Corp.

     6,133       273,654  

Champions Oncology, Inc.(a)

     511       4,466  

Charles River Laboratories International, Inc.(a)

     2,880       573,091  

ChromaDex Corp.(a)(b)

     2,753       13,930  

Enzo Biochem, Inc.(a)

     2,477       5,895  

Fluidigm Corp.(a)

     3,589       25,267  

Harvard Bioscience, Inc.(a)

     2,170       6,749  

Luminex Corp.

     2,503       91,109  

Medpace Holdings, Inc.(a)

     1,556       185,709  

NanoString Technologies, Inc.(a)

     2,158       77,925  

NeoGenomics, Inc.(a)

     6,162       235,573  

Pacific Biosciences of California, Inc.(a)(b)

     8,853       33,022  

PerkinElmer, Inc.

     6,561       780,169  

Personalis, Inc.(a)

     1,236       21,519  

PPD, Inc.(a)

     3,591       105,468  

PRA Health Sciences, Inc.(a)

     3,773       402,051  

QIAGEN NV(a)

     13,233       654,372  

Quanterix Corp.(a)

     1,083       34,992  

Repligen Corp.(a)

     3,078       464,501  

Syneos Health, Inc.(a)

     3,721       232,153  
   

 

 

  
    5,875,402  
Machinery — 3.7%  

AGCO Corp.

     3,794       249,000  

Alamo Group, Inc.

     581       59,907  

Albany International Corp., Class A

     1,779       85,534  

Allison Transmission Holdings, Inc.

     6,440       240,598  

Altra Industrial Motion Corp.

     3,683       126,069  

Astec Industries, Inc.

     1,532       68,159  

Barnes Group, Inc.

     2,702       99,623  

Blue Bird Corp.(a)

     768       9,623  

Chart Industries, Inc.(a)

     2,063       141,377  

CIRCOR International, Inc.(a)

     1,188       31,149  

Colfax Corp.(a)

     5,674       165,000  

Columbus McKinnon Corp.

     1,362       45,123  

Crane Co.

     3,058       172,991  

DMC Global, Inc.(b)

     841       24,709  

Donaldson Co., Inc.

     7,532       364,097  

Douglas Dynamics, Inc.

     1,244       43,975  

Eastern Co.

     259       4,224  

Energy Recovery, Inc.(a)

     2,318       17,594  

Enerpac Tool Group Corp.

     3,236       61,160  

EnPro Industries, Inc.

     1,208       57,658  

ESCO Technologies, Inc.

     1,463       125,730  

Evoqua Water Technologies Corp.(a)

     4,891       94,054  

ExOne Co.(a)(b)

     637       5,580  

Federal Signal Corp.

     3,419       105,681  

Flowserve Corp.

     7,463       207,994  

Gates Industrial Corp. PLC(a)(b)

     2,668       28,121  

Gencor Industries, Inc.(a)

     326       3,902  

Gorman-Rupp Co.

     1,030       31,168  

Graco, Inc.

     9,625       512,435  

Graham Corp.

     500       6,580  

Greenbrier Cos., Inc.

     1,826       46,983  

Helios Technologies, Inc.

     1,721       65,105  

Hillenbrand, Inc.

     4,233       123,731  
Security   Shares     Value  
Machinery (continued)  

Hurco Cos., Inc.

     302     $ 8,377  

Hyster-Yale Materials Handling, Inc.

     629       23,468  

ITT, Inc.

     5,167       298,291  

John Bean Technologies Corp.

     1,786       167,455  

Kadant, Inc.

     659       71,508  

Kennametal, Inc.

     4,751       128,087  

LB Foster Co., Class A(a)

     407       5,722  

Lincoln Electric Holdings, Inc.

     3,354       303,168  

Lindsay Corp.

     617       59,831  

Luxfer Holdings PLC

     1,743       22,136  

Lydall, Inc.(a)

     1,101       17,836  

Manitowoc Co., Inc.(a)

     2,617       27,897  

Meritor, Inc.(a)

     4,028       91,637  

Middleby Corp.(a)(b)

     3,259       270,693  

Miller Industries, Inc.

     546       15,479  

Mueller Industries, Inc.

     3,226       90,199  

Mueller Water Products, Inc., Class A

     8,999       91,070  

Navistar International Corp.(a)

     2,797       89,588  

NN, Inc.

     2,833       14,902  

Nordson Corp.

     3,358       650,210  

Omega Flex, Inc.

     189       23,011  

Oshkosh Corp.

     3,992       314,250  

Pentair PLC

     9,749       417,745  

Proto Labs, Inc.(a)

     1,606       192,913  

RBC Bearings, Inc.(a)

     1,481       181,304  

REV Group, Inc.

     1,889       12,279  

Rexnord Corp.

     6,324       183,206  

Shyft Group, Inc.

     2,029       38,308  

Snap-on, Inc.

     3,156       460,366  

SPX Corp.(a)

     2,499       104,958  

SPX FLOW, Inc.(a)(b)

     2,440       97,795  

Tennant Co.

     1,048       69,818  

Terex Corp.

     3,885       73,232  

Timken Co.

     3,969       181,225  

Toro Co.

     6,261       446,722  

TriMas Corp.(a)

     2,473       57,868  

Trinity Industries, Inc.

     5,312       103,743  

Valmont Industries, Inc.

     1,202       145,682  

Wabash National Corp.

     3,081       35,093  

Watts Water Technologies, Inc., Class A

     1,746       146,472  

Welbilt, Inc.(a)

     7,458       45,345  

Woodward, Inc.

     3,186       238,759  
   

 

 

  
    9,442,282  
Marine — 0.1%  

Costamare, Inc.

     2,749       12,508  

Eagle Bulk Shipping, Inc.(a)(b)

     1,704       4,141  

Genco Shipping & Trading Ltd.

     653       4,434  

Kirby Corp.(a)

     3,678       170,071  

Matson, Inc.

     2,455       89,411  

Safe Bulkers, Inc.(a)

     1,654       2,200  

Scorpio Bulkers, Inc.

     234       3,430  
   

 

 

  
    286,195  
Media — 1.7%  

AMC Networks, Inc., Class A(a)

     2,520       58,212  

Boston Omaha Corp., Class A(a)

     529       8,411  

Cable One, Inc.

     297       541,300  

Cardlytics, Inc.(a)

     1,476       98,036  

Central European Media Enterprises Ltd., Class A(a)

     5,251       20,899  

Cinemark Holdings, Inc.

     6,224       73,630  

Daily Journal Corp.(a)(b)

     71       20,164  

Emerald Holding, Inc.

     1,076       2,927  

Entercom Communications Corp., Class A

     5,968       8,355  

Entravision Communications Corp., Class A

     3,178       4,195  
 

 

 

SCHEDULES OF INVESTMENTS

   37

Schedule of Investments  (continued)

July 31, 2020

   

iShares Russell Small/Mid-Cap Index Fund

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Media (continued)  

Eros International PLC(a)(b)

     3,680     $ 10,451  

EW Scripps Co., Class A

     3,240       36,871  

Fluent, Inc.(a)

     1,589       2,892  

Gannett Co., Inc.(b)

     5,759       8,523  

GCI Liberty, Inc., Class A(a)

     5,903       462,736  

Gray Television, Inc.(a)

     5,881       84,334  

Hemisphere Media Group, Inc.(a)

     733       6,450  

iHeartMedia, Inc., Class A(a)

     1,707       14,271  

IMAX Corp.(a)

     3,085       34,830  

Interpublic Group of Cos., Inc.

     22,858       412,587  

John Wiley & Sons, Inc., Class A

     2,508       84,846  

Liberty Latin America Ltd., Class A(a)

     2,582       26,543  

Liberty Latin America Ltd., Class C(a)

     6,589       67,405  

Liberty Media Corp. — Liberty Formula One, Class A(a)

     1,695       56,088  

Liberty Media Corp. — Liberty Formula One, Class C(a)

     11,584       410,537  

Liberty Media Corp. — Liberty Braves, Class A(a)

     524       9,909  

Liberty Media Corp. — Liberty Braves, Class C(a)

     2,007       37,431  

Lions Gate Entertainment Corp., Class A(a)

     3,107       23,800  

Lions Gate Entertainment Corp., Class B(a)

     6,941       49,350  

LiveXLive Media, Inc.(a)

     1,347       4,081  

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

     1,084       166,600  

Meredith Corp.

     2,338       33,574  

MSG Networks, Inc., Class A(a)

     2,148       20,470  

National CineMedia, Inc.

     3,463       8,554  

New York Times Co., Class A

     9,527       439,576  

News Corp., Class A

     22,256       283,096  

News Corp., Class B

     7,809       99,643  

Nexstar Media Group, Inc., Class A

     2,615       229,205  

Saga Communications, Inc., Class A

     168       3,928  

Scholastic Corp.

     2,093       50,085  

Sinclair Broadcast Group, Inc., Class A

     3,049       62,809  

TechTarget, Inc.(a)(b)

     1,338       48,556  

TEGNA, Inc.

     12,530       147,603  

Tribune Publishing Co.

     814       7,936  

Value Line, Inc.

     72       1,775  

WideOpenWest, Inc.(a)

     3,047       16,637  
   

 

 

  
    4,300,111  
Metals & Mining — 1.1%  

Alcoa Corp.(a)

     11,415       148,395  

Allegheny Technologies, Inc.(a)

     7,192       62,498  

Arconic Corp.(a)

     5,664       92,267  

Caledonia Mining Corp. PLC

     634       14,538  

Carpenter Technology Corp.

     2,753       61,557  

Century Aluminum Co.(a)

     2,941       25,616  

Cleveland-Cliffs, Inc.(b)

     22,605       117,094  

Coeur Mining, Inc.(a)

     13,795       109,394  

Commercial Metals Co.

     6,845       141,555  

Compass Minerals International, Inc.

     1,941       98,874  

Ferroglobe PLC(c)

     897       —  

Gold Resource Corp.

     3,023       13,271  

Haynes International, Inc.

     789       14,486  

Hecla Mining Co.

     29,742       164,176  

Kaiser Aluminum Corp.

     897       55,569  

Materion Corp.

     1,168       67,067  

Mayville Engineering Co., Inc.(a)

     267       2,026  

Novagold Resources, Inc.(a)(b)

     14,334       130,726  

Olympic Steel, Inc.

     326       3,449  

Reliance Steel & Aluminum Co.

     3,733       366,805  

Royal Gold, Inc.

     3,853       539,150  

Ryerson Holding Corp.(a)

     675       3,800  

Schnitzer Steel Industries, Inc., Class A

     1,584       29,146  

Steel Dynamics, Inc.

     12,134       332,593  

SunCoke Energy, Inc.

     4,822       15,382  

TimkenSteel Corp.(a)

     2,056       7,545  
Security   Shares     Value  
Metals & Mining (continued)  

U.S. Silica Holdings, Inc.

     4,190     $ 14,791  

United States Steel Corp.

     12,550       83,583  

Warrior Met Coal, Inc.

     2,953       47,012  

Worthington Industries, Inc.

     2,099       78,545  
   

 

 

  
    2,840,910  
Mortgage Real Estate Investment Trusts (REITs) — 0.3%  

AGNC Investment Corp.

     33,248       452,173  

Broadmark Realty Capital, Inc.

     7,341       67,684  

Colony Credit Real Estate, Inc.

     4,943       31,141  

Dynex Capital, Inc.

     1,452       22,433  

Ellington Financial, Inc.

     2,467       29,012  

Front Yard Residential Corp.

     2,906       25,195  

Granite Point Mortgage Trust, Inc.

     3,208       21,782  

Great Ajax Corp.

     1,223       10,542  

Invesco Mortgage Capital, Inc.(b)

     11,018       33,825  

KKR Real Estate Finance Trust, Inc.

     1,553       25,857  

Ready Capital Corp.

     2,349       18,839  

TPG RE Finance Trust, Inc.

     3,404       29,547  

Two Harbors Investment Corp.

     15,546       84,415  

Western Asset Mortgage Capital Corp.

     2,714       5,727  
   

 

 

  
    858,172  
Multi-Utilities — 0.3%  

Avista Corp.

     3,856       143,173  

Black Hills Corp.

     3,776       218,480  

MDU Resources Group, Inc.

     11,767       246,872  

NorthWestern Corp.

     2,932       164,954  
   

 

 

  
    773,479  
Multiline Retail — 0.3%  

Big Lots, Inc.

     2,309       90,836  

Dillard’s, Inc., Class A(b)

     471       11,092  

Kohl’s Corp.

     9,343       177,891  

Macy’s, Inc.(b)

     16,896       102,390  

Nordstrom, Inc.(b)

     6,280       85,973  

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

     3,141       330,119  
   

 

 

  
    798,301  
Oil, Gas & Consumable Fuels — 1.9%  

Adams Resources & Energy, Inc.

     168       3,557  

Amyris, Inc.(a)(b)

     3,991       17,082  

Antero Midstream Corp.

     16,452       93,283  

Antero Resources Corp.(a)

     14,047       41,579  

Apache Corp.

     22,445       344,531  

Arch Resources, Inc.

     904       28,042  

Ardmore Shipping Corp.

     1,437       5,906  

Berry Corp.

     3,437       16,171  

Bonanza Creek Energy, Inc.(a)

     944       17,171  

Brigham Minerals, Inc., Class A

     1,828       20,254  

Cimarex Energy Co.

     5,788       141,575  

Clean Energy Fuels Corp.(a)

     6,462       15,380  

CNX Resources Corp.(a)

     10,627       102,551  

Comstock Resources, Inc.(a)

     657       3,522  

CONSOL Energy, Inc.(a)

     1,305       7,673  

Contango Oil & Gas Co.(a)

     5,116       9,107  

Continental Resources, Inc.

     4,317       74,641  

CVR Energy, Inc.

     1,691       32,467  

Delek US Holdings, Inc.

     3,585       62,666  

Devon Energy Corp.

     21,909       229,825  

DHT Holdings, Inc.

     6,410       36,409  

Diamond S Shipping, Inc.(a)

     1,291       11,335  

Diamondback Energy, Inc.

     9,398       374,604  

Dorian LPG Ltd.(a)

     1,847       15,773  

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

     661       1,738  

Energy Fuels, Inc.(a)

     5,468       9,350  
 

 

 

38  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (continued)

July 31, 2020

   

iShares Russell Small/Mid-Cap Index Fund

(Percentages shown are based on Net Assets)

 

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

EQT Corp.

     15,309     $ 222,287  

Equitrans Midstream Corp.

     24,327       234,756  

Evolution Petroleum Corp.

     1,497       3,922  

Falcon Minerals Corp.

     1,550       3,891  

Frontline Ltd.

     6,725       53,800  

Golar LNG Ltd.

     5,384       40,380  

Goodrich Petroleum Corp.(a)(b)

     250       1,863  

Green Plains, Inc.(a)

     1,788       23,119  

Gulfport Energy Corp.(a)

     10,769       10,877  

HollyFrontier Corp.

     8,503       233,833  

International Seaways, Inc.

     1,461       25,231  

Kosmos Energy Ltd.

     23,094       37,181  

Magnolia Oil & Gas Corp., Class A(a)

     7,243       43,313  

Marathon Oil Corp.

     48,231       264,788  

Matador Resources Co.(a)

     6,377       55,352  

Montage Resources Corp.(a)

     878       3,767  

Murphy Oil Corp.

     8,376       110,647  

NextDecade Corp.(a)(b)

     435       674  

Noble Energy, Inc.

     28,553       285,244  

Nordic American Tankers Ltd.

     7,726       35,153  

Overseas Shipholding Group, Inc., Class A(a)

     3,265       7,542  

Ovintiv, Inc.

     15,763       152,743  

Par Pacific Holdings, Inc.(a)

     2,200       16,302  

Parsley Energy, Inc., Class A

     18,642       204,689  

PBF Energy, Inc., Class A

     5,563       48,287  

PDC Energy, Inc.(a)

     5,862       83,592  

Peabody Energy Corp.

     3,872       12,081  

Penn Virginia Corp.(a)

     666       6,600  

PrimeEnergy Resources Corp.(a)

     13       926  

Range Resources Corp.(b)

     12,205       78,844  

Renewable Energy Group, Inc.(a)

     2,193       60,483  

REX American Resources Corp.(a)(b)

     348       23,716  

Scorpio Tankers, Inc.

     2,932       38,761  

SFL Corp. Ltd.

     5,469       45,447  

SM Energy Co.

     6,944       20,485  

Southwestern Energy Co.(a)

     31,708       77,050  

Talos Energy, Inc.(a)

     839       5,714  

Targa Resources Corp.

     13,706       250,546  

Tellurian, Inc.(a)(b)

     8,480       7,562  

Uranium Energy Corp.(a)

     9,375       9,078  

W&T Offshore, Inc.(a)(b)

     4,964       11,219  

Whiting Petroleum Corp.(a)(b)

     3,916       3,054  

World Fuel Services Corp.

     3,911       92,026  

WPX Energy, Inc.(a)

     23,328       139,268  
   

 

 

  
    4,802,285  
Paper & Forest Products — 0.2%  

Boise Cascade Co.

     2,249       104,781  

Clearwater Paper Corp.(a)

     929       34,299  

Domtar Corp.

     3,154       66,203  

Louisiana-Pacific Corp.

     6,735       213,298  

Neenah, Inc.

     958       42,736  

PH Glatfelter Co.

     2,510       39,984  

Schweitzer-Mauduit International, Inc.

     2,178       70,850  

Verso Corp., Class A

     2,082       25,421  
   

 

 

  
    597,572  
Personal Products — 0.4%  

BellRing Brands, Inc., Class A(a)

     2,231       44,330  

Coty, Inc., Class A

     16,516       61,274  

Edgewell Personal Care Co.(a)

     3,115       93,107  

elf Beauty, Inc.(a)

     1,554       27,755  

Herbalife Nutrition Ltd.(a)

     5,976       306,210  

Inter Parfums, Inc.

     1,036       42,362  

Lifevantage Corp.(a)

     907       11,646  
Security   Shares     Value  
Personal Products (continued)  

Medifast, Inc.

     653     $ 109,136  

Nature’s Sunshine Products, Inc.(a)

     459       4,365  

Nu Skin Enterprises, Inc., Class A

     2,982       133,743  

Revlon, Inc., Class A(a)(b)

     254       1,605  

USANA Health Sciences, Inc.(a)(b)

     643       52,199  

Veru, Inc.(a)

     2,890       8,179  
   

 

 

  
    895,911  
Pharmaceuticals — 1.8%  

AcelRx Pharmaceuticals, Inc.(a)

     3,225       3,515  

Aerie Pharmaceuticals, Inc.(a)(b)

     2,086       24,114  

Agile Therapeutics, Inc.(a)

     3,931       9,828  

Amneal Pharmaceuticals, Inc.(a)

     6,163       26,686  

Amphastar Pharmaceuticals, Inc.(a)

     2,088       41,802  

ANI Pharmaceuticals, Inc.(a)

     607       17,973  

Aquestive Therapeutics, Inc.(a)

     1,170       6,154  

Arvinas, Inc.(a)

     1,673       52,700  

Assembly Biosciences, Inc.(a)

     1,790       39,738  

Avenue Therapeutics, Inc.(a)

     436       4,417  

Axsome Therapeutics, Inc.(a)

     1,579       112,630  

BioDelivery Sciences International, Inc.(a)

     5,187       21,734  

Cara Therapeutics, Inc.(a)

     2,345       38,552  

Catalent, Inc.(a)

     9,091       794,008  

Cerecor, Inc.(a)

     875       2,389  

Collegium Pharmaceutical, Inc.(a)(b)

     1,873       29,556  

Corcept Therapeutics, Inc.(a)(b)

     5,532       82,703  

CorMedix, Inc.(a)

     1,462       6,506  

Cymabay Therapeutics, Inc.(a)(b)

     3,504       12,439  

Durect Corp.(a)

     11,158       21,870  

Eloxx Pharmaceuticals, Inc.(a)

     956       2,667  

Endo International PLC(a)

     12,489       43,462  

Eton Pharmaceuticals, Inc.(a)

     831       5,551  

Evofem Biosciences, Inc.(a)

     2,946       8,809  

Evolus, Inc.(a)(b)

     1,546       5,040  

Fulcrum Therapeutics, Inc.(a)

     592       9,395  

Harrow Health, Inc.(a)(b)

     1,273       6,976  

Heska Corp.(a)

     405       38,969  

Horizon Therapeutics PLC(a)

     10,830       662,688  

IMARA, Inc.(a)

     279       5,633  

Innoviva, Inc.(a)

     3,731       50,536  

Intersect ENT, Inc.(a)

     1,873       32,197  

Intra-Cellular Therapies, Inc.(a)

     3,140       62,251  

Jazz Pharmaceuticals PLC(a)

     3,106       336,224  

Kala Pharmaceuticals, Inc.(a)(b)

     2,233       19,539  

Kaleido Biosciences, Inc.(a)(b)

     497       2,967  

Lannett Co., Inc.(a)(b)

     1,551       9,228  

Liquidia Technologies, Inc.(a)

     1,169       6,465  

Lyra Therapeutics, Inc.(a)

     431       5,775  

Mallinckrodt PLC(a)(b)

     5,268       11,748  

Marinus Pharmaceuticals, Inc.(a)

     3,984       6,693  

Menlo Therapeutics, Inc.(a)

     6,130       9,869  

MyoKardia, Inc.(a)

     2,927       263,811  

Nektar Therapeutics(a)(b)

     10,435       231,240  

NGM Biopharmaceuticals, Inc.(a)

     1,325       24,234  

Odonate Therapeutics, Inc.(a)

     746       27,132  

Omeros Corp.(a)(b)

     2,988       38,336  

Optinose, Inc.(a)

     1,482       7,551  

Osmotica Pharmaceuticals PLC(a)

     478       2,557  

Pacira BioSciences, Inc.(a)(b)

     2,375       124,949  

Paratek Pharmaceuticals, Inc.(a)

     2,579       11,270  

Perrigo Co. PLC

     8,105       429,727  

Phathom Pharmaceuticals, Inc.(a)(b)

     573       19,058  

Phibro Animal Health Corp., Class A

     1,129       26,187  

Prestige Consumer Healthcare, Inc.(a)

     2,906       108,074  

Provention Bio, Inc.(a)

     2,391       24,842  
 

 

 

SCHEDULES OF INVESTMENTS

   39

Schedule of Investments  (continued)

July 31, 2020

   

iShares Russell Small/Mid-Cap Index Fund

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Pharmaceuticals (continued)  

Reata Pharmaceuticals, Inc., Class A(a)

     1,409     $ 208,109  

Relmada Therapeutics, Inc.(a)(b)

     793       28,841  

Revance Therapeutics, Inc.(a)(b)

     3,236       75,981  

Satsuma Pharmaceuticals, Inc.(a)

     522       12,324  

SIGA Technologies, Inc.(a)

     3,406       21,867  

Supernus Pharmaceuticals, Inc.(a)

     2,793       62,186  

TherapeuticsMD, Inc.(a)(b)

     14,617       27,041  

Theravance Biopharma, Inc.(a)

     2,701       52,453  

Tricida, Inc.(a)

     1,616       21,622  

Verrica Pharmaceuticals, Inc.(a)

     573       3,759  

WaVe Life Sciences Ltd.(a)

     1,077       9,456  

Xeris Pharmaceuticals, Inc.(a)(b)

     1,923       5,500  

Zogenix, Inc.(a)

     3,176       75,557  
   

 

 

  
    4,635,660  
Professional Services — 1.1%  

Acacia Research Corp.(a)

     169       669  

Akerna Corp.(a)

     592       3,866  

ASGN, Inc.(a)

     2,901       198,603  

Barrett Business Services, Inc.

     449       23,653  

BG Staffing, Inc.

     361       3,278  

CBIZ, Inc.(a)

     2,995       72,419  

CRA International, Inc.

     427       17,836  

Exponent, Inc.

     3,013       253,273  

Forrester Research, Inc.(a)

     664       23,313  

Franklin Covey Co.(a)

     727       13,151  

FTI Consulting, Inc.(a)

     2,156       257,513  

GP Strategies Corp.(a)

     562       4,176  

Heidrick & Struggles International, Inc.

     1,160       23,467  

Huron Consulting Group, Inc.(a)

     1,316       62,800  

ICF International, Inc.

     1,069       72,275  

Insperity, Inc.

     2,184       146,022  

Kelly Services, Inc., Class A

     1,972       29,205  

Kforce, Inc.

     1,111       32,041  

Korn Ferry

     3,589       100,851  

ManpowerGroup, Inc.

     3,427       235,743  

Mastech Digital, Inc.(a)

     229       4,924  

Mistras Group, Inc.(a)

     1,389       4,903  

Nielsen Holdings PLC

     21,119       304,747  

Paylocity Holding Corp.(a)(b)

     2,035       271,062  

Red Violet, Inc.(a)

     370       5,665  

Resources Connection, Inc.

     1,828       20,656  

Robert Half International, Inc.

     6,543       332,842  

TriNet Group, Inc.(a)

     2,372       156,552  

TrueBlue, Inc.(a)

     1,905       29,394  

Upwork, Inc.(a)

     5,296       79,546  

Willdan Group, Inc.(a)(b)

     506       12,478  
   

 

 

  
    2,796,923  
Real Estate Management & Development — 0.6%  

Alexander & Baldwin, Inc.

     4,231       50,010  

Altisource Portfolio Solutions SA(a)

     342       4,593  

American Realty Investors, Inc.(a)

     117       1,081  

CareTrust REIT, Inc.

     6,133       110,517  

CTO Realty Growth, Inc.

     242       9,593  

Cushman & Wakefield PLC(a)

     6,321       67,635  

Essential Properties Realty Trust, Inc.

     5,215       83,961  

eXp World Holdings, Inc.(a)

     1,356       26,944  

Forestar Group, Inc.(a)

     896       15,510  

FRP Holdings, Inc.(a)

     420       16,430  

Global Medical REIT, Inc.

     2,345       27,882  

Howard Hughes Corp.(a)

     2,213       117,709  

Jones Lang LaSalle, Inc.

     3,027       299,401  

Kennedy-Wilson Holdings, Inc.

     7,114       105,572  

Marcus & Millichap, Inc.(a)

     1,362       37,101  
Security   Shares     Value  
Real Estate Management & Development (continued)  

Maui Land & Pineapple Co., Inc.(a)

     670     $ 6,975  

Newmark Group, Inc., Class A

     8,681       35,332  

Rafael Holdings, Inc., Class B(a)

     567       7,921  

RE/MAX Holdings, Inc., Class A

     1,101       35,639  

Realogy Holdings Corp.

     6,547       59,316  

Redfin Corp.(a)(b)

     5,645       234,719  

RMR Group, Inc., Class A

     919       26,430  

St. Joe Co.(a)

     1,987       40,952  

Stratus Properties, Inc.(a)

     267       5,100  

Tejon Ranch Co.(a)

     1,400       20,090  

Transcontinental Realty Investors, Inc.(a)

     22       517  
   

 

 

  
    1,446,930  
Road & Rail — 0.6%  

AMERCO

     512       162,678  

ArcBest Corp.

     1,534       46,618  

Avis Budget Group, Inc.(a)

     2,952       76,457  

Covenant Logistics Group, Inc., Class A(a)

     683       11,509  

Daseke, Inc.(a)(b)

     3,220       13,427  

Heartland Express, Inc.

     2,786       56,514  

Hertz Global Holdings, Inc.(a)(b)

     5,881       8,527  

Knight-Swift Transportation Holdings, Inc.(b)

     7,335       318,999  

Landstar System, Inc.

     2,186       266,211  

Marten Transport Ltd.

     2,784       74,110  

PAM Transportation Services, Inc.(a)(b)

     74       2,076  

Ryder System, Inc.

     3,014       110,403  

Saia, Inc.(a)

     1,580       188,731  

Schneider National, Inc., Class B

     3,378       84,889  

Universal Logistics Holdings, Inc.

     322       5,915  

US Xpress Enterprises, Inc., Class A(a)

     1,235       11,313  

Werner Enterprises, Inc.

     3,482       153,156  
   

 

 

  
    1,591,533  
Semiconductors & Semiconductor Equipment — 3.2%  

Advanced Energy Industries, Inc.(a)

     2,168       159,500  

Alpha & Omega Semiconductor Ltd.(a)

     978       10,650  

Ambarella, Inc.(a)

     1,890       85,579  

Amkor Technology, Inc.(a)

     5,716       77,709  

Atomera, Inc.(a)

     813       8,650  

Axcelis Technologies, Inc.(a)

     1,832       53,897  

AXT, Inc.(a)

     2,786       13,345  

Brooks Automation, Inc.(b)

     4,313       234,843  

Cabot Microelectronics Corp.

     1,706       257,128  

CEVA, Inc.(a)

     1,268       50,974  

Cirrus Logic, Inc.(a)

     3,477       238,279  

Cohu, Inc.

     2,339       44,043  

Cree, Inc.(a)(b)

     6,376       439,434  

CyberOptics Corp.(a)

     403       15,858  

Diodes, Inc.(a)

     2,421       124,560  

DSP Group, Inc.(a)

     1,222       18,147  

Enphase Energy, Inc.(a)(b)

     6,221       375,500  

Entegris, Inc.

     7,785       559,819  

First Solar, Inc.(a)(b)

     4,987       296,976  

FormFactor, Inc.(a)

     4,354       125,569  

GSI Technology, Inc.(a)(b)

     1,299       7,430  

Ichor Holdings Ltd.(a)

     1,326       43,519  

Impinj, Inc.(a)(b)

     991       23,388  

Inphi Corp.(a)

     2,823       368,853  

Lattice Semiconductor Corp.(a)

     7,906       245,798  

MACOM Technology Solutions Holdings, Inc.(a)

     2,675       113,045  

MaxLinear, Inc.(a)

     3,822       96,888  

MKS Instruments, Inc.

     3,191       406,661  

Monolithic Power Systems, Inc.

     2,537       672,330  

NeoPhotonics Corp.(a)

     2,759       25,134  

NVE Corp.

     250       13,560  
 

 

 

40  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (continued)

July 31, 2020

   

iShares Russell Small/Mid-Cap Index Fund

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Semiconductors & Semiconductor Equipment (continued)  

ON Semiconductor Corp.(a)

     23,949     $ 493,349  

Onto Innovation, Inc.(a)

     2,724       103,022  

PDF Solutions, Inc.(a)

     1,827       44,908  

Photronics, Inc.(a)

     2,652       31,506  

Pixelworks, Inc.(a)

     2,177       6,945  

Power Integrations, Inc.

     1,676       204,522  

Rambus, Inc.(a)

     6,456       95,291  

Semtech Corp.(a)

     3,826       213,223  

Silicon Laboratories, Inc.(a)

     2,464       247,657  

SiTime Corp.(a)(b)

     330       17,540  

SMART Global Holdings, Inc.(a)

     840       23,428  

SolarEdge Technologies, Inc.(a)(b)

     2,865       501,661  

SunPower Corp.(a)(b)

     4,326       40,362  

Teradyne, Inc.

     9,630       856,685  

Ultra Clean Holdings, Inc.(a)

     2,266       68,184  

Veeco Instruments, Inc.(a)

     2,777       37,545  
   

 

 

  
    8,192,894  
Software — 7.1%  

A10 Networks, Inc.(a)

     3,697       29,872  

ACI Worldwide, Inc.(a)

     6,517       174,590  

Alarm.com Holdings, Inc.(a)

     2,692       188,548  

Altair Engineering, Inc., Class A(a)(b)

     2,391       96,357  

Alteryx, Inc., Class A(a)(b)

     3,092       542,615  

American Software, Inc., Class A

     1,676       27,604  

Anaplan, Inc.(a)

     7,748       351,837  

Appfolio, Inc., Class A(a)

     954       132,816  

Appian Corp.(a)(b)

     1,988       101,130  

Aspen Technology, Inc.(a)

     3,964       385,539  

Asure Software, Inc.(a)(b)

     565       3,644  

Avalara, Inc.(a)

     4,513       606,773  

Avaya Holdings Corp.(a)

     5,343       67,642  

Benefitfocus, Inc.(a)

     1,841       21,558  

Bill.Com Holdings, Inc.(a)

     921       85,754  

Blackbaud, Inc.

     3,044       190,372  

Blackline, Inc.(a)

     2,939       261,306  

Bottomline Technologies DE, Inc.(a)

     2,728       131,653  

Box, Inc., Class A(a)(b)

     8,402       150,816  

CDK Global, Inc.

     7,198       327,221  

Cerence, Inc.(a)

     2,098       83,207  

Ceridian HCM Holding, Inc.(a)

     6,219       486,886  

ChannelAdvisor Corp.(a)

     1,642       33,448  

Cloudera, Inc.(a)(b)

     11,675       131,577  

Cloudflare, Inc., Class A(a)

     6,447       268,324  

CommVault Systems, Inc.(a)

     2,396       105,616  

Cornerstone OnDemand, Inc.(a)

     3,470       123,220  

Digimarc Corp.(a)(b)

     821       11,543  

Digital Turbine, Inc.(a)

     4,697       65,194  

Domo, Inc., Class B(a)

     1,454       46,790  

Dynatrace, Inc.(a)

     8,922       373,207  

Ebix, Inc.(b)

     1,532       33,788  

eGain Corp.(a)

     1,752       17,362  

Elastic NV(a)

     3,234       311,078  

Envestnet, Inc.(a)

     3,021       245,305  

Everbridge, Inc.(a)

     2,016       287,885  

Fair Isaac Corp.(a)

     1,636       718,515  

FireEye, Inc.(a)(b)

     13,847       209,090  

Five9, Inc.(a)(b)

     3,627       438,214  

ForeScout Technologies, Inc.(a)(b)

     2,741       79,462  

GlobalSCAPE, Inc.

     809       7,710  

Globant SA(a)

     2,119       366,460  

GTY Technology Holdings, Inc.(a)

     3,238       10,524  

Guidewire Software, Inc.(a)

     4,882       574,416  

HubSpot, Inc.(a)

     2,436       571,510  

Intelligent Systems Corp.(a)

     474       14,372  
Security   Shares     Value  
Software (continued)  

j2 Global, Inc.(a)

     2,633     $ 149,344  

LivePerson, Inc.(a)

     3,649       156,834  

LogMeIn, Inc.

     2,862       245,588  

Majesco(a)

     388       5,063  

Manhattan Associates, Inc.(a)

     3,716       355,956  

Medallia, Inc.(a)

     4,691       144,154  

MicroStrategy, Inc., Class A(a)

     434       53,781  

Mimecast Ltd.(a)(b)

     3,418       160,407  

Mitek Systems, Inc.(a)

     797       8,177  

MobileIron, Inc.(a)

     5,085       31,680  

Model N, Inc.(a)

     1,957       75,266  

NetScout Systems, Inc.(a)

     4,060       103,368  

New Relic, Inc.(a)

     3,012       213,581  

Nuance Communications, Inc.(a)

     16,414       448,923  

Nutanix, Inc., Class A(a)

     10,586       234,903  

OneSpan, Inc.(a)

     1,929       60,069  

PagerDuty, Inc.(a)(b)

     3,931       119,817  

Park City Group, Inc.(a)

     978       4,274  

Pegasystems, Inc.

     2,329       272,237  

Ping Identity Holding Corp.(a)

     913       31,371  

Pluralsight, Inc., Class A(a)

     5,385       114,000  

Progress Software Corp.

     2,573       89,695  

Proofpoint, Inc.(a)

     3,338       386,106  

PROS Holdings, Inc.(a)

     2,242       73,156  

PTC, Inc.(a)

     6,129       524,397  

Q2 Holdings, Inc.(a)

     2,938       276,319  

QAD, Inc., Class A

     681       26,906  

Qualys, Inc.(a)(b)

     2,011       248,318  

Rapid7, Inc.(a)

     2,873       171,145  

RealPage, Inc.(a)

     5,151       324,565  

Rimini Street, Inc.(a)

     1,025       5,422  

Rosetta Stone, Inc.(a)

     1,353       36,220  

SailPoint Technologies Holding, Inc.(a)

     5,022       158,193  

Sapiens International Corp. NV

     1,462       44,679  

Seachange International, Inc.(a)

     1,323       2,077  

SecureWorks Corp., Class A(a)

     307       3,672  

ShotSpotter, Inc.(a)

     398       9,170  

Smartsheet, Inc., Class A(a)(b)

     6,522       311,360  

Smith Micro Software, Inc.(a)

     1,924       7,946  

SolarWinds Corp.(a)(b)

     2,763       50,729  

Sprout Social, Inc., Class A(a)

     454       13,116  

SPS Commerce, Inc.(a)

     2,116       159,060  

SVMK, Inc.(a)

     7,100       170,258  

Synchronoss Technologies, Inc.(a)

     1,988       6,560  

Telenav, Inc.(a)(b)

     1,667       8,643  

Tenable Holdings, Inc.(a)

     3,479       118,042  

Upland Software, Inc.(a)

     1,284       44,195  

Varonis Systems, Inc.(a)

     1,890       204,781  

Verint Systems, Inc.(a)

     3,658       164,208  

Veritone, Inc.(a)(b)

     1,323       14,976  

VirnetX Holding Corp.

     3,499       18,090  

Workiva, Inc.(a)

     2,191       122,477  

Xperi Holding Corp.

     6,123       112,908  

Yext, Inc.(a)

     5,770       97,051  

Zendesk, Inc.(a)(b)

     6,673       608,244  

Zix Corp.(a)

     3,312       23,565  

Zscaler, Inc.(a)

     4,127       535,891  

Zuora, Inc., Class A(a)

     5,592       65,091  

Zynga, Inc., Class A(a)(b)

     51,730       508,506  
   

 

 

  
    18,226,880  
Specialty Retail — 1.9%  

A-Mark Precious Metals, Inc.(a)

     279       6,721  

Aaron’s, Inc.

     3,849       200,841  

Abercrombie & Fitch Co., Class A

     3,634       34,995  
 

 

 

SCHEDULES OF INVESTMENTS

   41

Schedule of Investments  (continued)

July 31, 2020

   

iShares Russell Small/Mid-Cap Index Fund

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Specialty Retail (continued)  

America’s Car-Mart, Inc.(a)

     331     $ 31,498  

American Eagle Outfitters, Inc.

     8,636       86,360  

Asbury Automotive Group, Inc.(a)

     1,113       111,467  

AutoNation, Inc.(a)

     3,396       174,351  

Bed Bath & Beyond, Inc.

     7,374       79,787  

Boot Barn Holdings, Inc.(a)

     1,660       32,138  

Buckle, Inc.

     1,682       26,962  

Caleres, Inc.

     2,059       12,992  

Cato Corp., Class A

     1,035       7,442  

Chico’s FAS, Inc.

     5,664       7,193  

Children’s Place, Inc.

     857       20,919  

Citi Trends, Inc.

     536       9,230  

Conn’s, Inc.(a)

     866       8,625  

Container Store Group, Inc.(a)(b)

     598       2,063  

Designer Brands, Inc., Class A

     3,803       22,476  

Dick’s Sporting Goods, Inc.

     3,715       169,478  

Express, Inc.(a)

     2,819       2,847  

Five Below, Inc.(a)

     3,283       357,552  

Floor & Decor Holdings, Inc., Class A(a)

     4,780       315,002  

Foot Locker, Inc.

     6,348       186,568  

GameStop Corp., Class A(a)(b)

     3,201       12,836  

Gap, Inc.

     11,186       149,557  

Genesco, Inc.(a)

     770       11,974  

Group 1 Automotive, Inc.

     1,033       86,793  

GrowGeneration Corp.(a)

     1,635       13,799  

Guess?, Inc.

     2,703       27,949  

Haverty Furniture Cos., Inc.

     837       11,902  

Hibbett Sports, Inc.(a)(b)

     857       19,874  

Hudson Ltd., Class A(a)

     2,124       9,303  

L Brands, Inc.

     13,682       333,978  

Lithia Motors, Inc., Class A

     1,259       288,500  

Lumber Liquidators Holdings, Inc.(a)

     1,780       39,730  

MarineMax, Inc.(a)

     1,082       30,015  

Michaels Cos., Inc.(a)

     5,134       36,862  

Monro, Inc.

     1,887       106,238  

Murphy USA, Inc.(a)

     1,578       208,943  

National Vision Holdings, Inc.(a)

     4,587       146,738  

ODP Corp.

     2,999       66,188  

OneWater Marine, Inc., Class A(a)

     263       6,575  

Penske Automotive Group, Inc.

     1,904       85,337  

Rent-A-Center, Inc.

     2,786       80,571  

RH(a)

     984       282,831  

Sally Beauty Holdings, Inc.(a)(b)

     7,070       82,083  

Shoe Carnival, Inc.

     466       11,440  

Signet Jewelers Ltd.

     2,995       32,166  

Sleep Number Corp.(a)

     1,556       72,354  

Sonic Automotive, Inc., Class A

     1,387       52,872  

Sportsman’s Warehouse Holdings, Inc.(a)

     2,636       42,413  

Systemax, Inc.

     775       17,368  

Tilly’s, Inc., Class A

     1,007       6,052  

Urban Outfitters, Inc.(a)

     3,831       63,365  

Williams-Sonoma, Inc.

     4,552       396,570  

Winmark Corp.

     169       26,868  

Zumiez, Inc.(a)(b)

     1,205       27,835  
   

 

 

  
    4,795,386  
Technology Hardware, Storage & Peripherals — 0.4%  

3D Systems Corp.(a)(b)

     6,367       41,959  

Avid Technology, Inc.(a)

     1,999       16,452  

Diebold Nixdorf, Inc.(a)

     3,765       26,242  

Immersion Corp.(a)

     1,332       8,991  

Intevac, Inc.(a)

     1,310       7,755  

NCR Corp.(a)

     7,321       134,926  

Pure Storage, Inc., Class A(a)(b)

     13,814       246,718  

Quantum Corp.(a)(b)

     1,685       7,330  
Security   Shares     Value  
Technology Hardware, Storage & Peripherals (continued)  

Super Micro Computer, Inc.(a)

     2,543     $ 77,066  

Synaptics, Inc.(a)

     2,116       169,322  

Xerox Holdings Corp.(a)

     10,939       182,134  
   

 

 

  
    918,895  
Textiles, Apparel & Luxury Goods — 1.0%  

Capri Holdings Ltd.(a)

     8,172       122,417  

Carter’s, Inc.

     2,557       201,287  

Columbia Sportswear Co.

     1,655       125,515  

Crocs, Inc.(a)

     3,784       135,997  

Deckers Outdoor Corp.(a)

     1,642       343,589  

Fossil Group, Inc.(a)(b)

     2,445       8,093  

G-III Apparel Group Ltd.(a)(b)

     2,378       23,518  

Hanesbrands, Inc.

     19,894       281,102  

Kontoor Brands, Inc.(a)

     2,950       56,522  

Lakeland Industries, Inc.(a)

     445       10,529  

Movado Group, Inc.

     763       7,355  

Oxford Industries, Inc.

     926       39,762  

PVH Corp.

     4,032       196,197  

Ralph Lauren Corp.

     2,749       196,004  

Rocky Brands, Inc.

     332       7,553  

Skechers U.S.A., Inc., Class A(a)

     7,683       224,958  

Steven Madden Ltd.

     4,742       100,436  

Superior Group of Cos., Inc.

     496       9,548  

Tapestry, Inc.

     15,872       212,050  

Under Armour, Inc., Class A(a)(b)

     11,574       121,758  

Under Armour, Inc., Class C(a)(b)

     11,071       105,064  

Unifi, Inc.(a)

     716       8,563  

Vera Bradley, Inc.(a)

     851       3,732  

Wolverine World Wide, Inc.

     4,581       110,127  
   

 

 

  
    2,651,676  
Thrifts & Mortgage Finance — 1.0%  

Axos Financial, Inc.(a)

     3,928       88,026  

Banc of California, Inc.

     2,633       28,226  

Berkshire Hills Bancorp, Inc.

     2,358       23,486  

Bogota Financial Corp.(a)

     523       4,126  

Bridgewater Bancshares, Inc.(a)

     1,023       9,504  

Brookline Bancorp, Inc.

     3,331       31,961  

Capitol Federal Financial, Inc.

     7,680       74,112  

Columbia Financial, Inc.(a)

     2,861       34,418  

Dime Community Bancshares, Inc.

     2,566       30,138  

ESSA Bancorp, Inc.

     470       5,922  

Essent Group Ltd.

     6,333       226,911  

Federal Agricultural Mortgage Corp., Class C

     522       31,064  

Flagstar Bancorp, Inc.

     2,037       63,921  

Flushing Financial Corp.

     1,428       15,822  

FS Bancorp, Inc.

     192       7,296  

Greene County Bancorp, Inc.

     113       2,433  

Hingham Institution for Savings

     74       13,024  

Home Bancorp, Inc.

     574       13,420  

HomeStreet, Inc.

     888       23,479  

Kearny Financial Corp.

     4,348       34,958  

Ladder Capital Corp.

     5,943       46,177  

LendingTree, Inc.(a)

     453       156,869  

Luther Burbank Corp.

     1,439       13,771  

Merchants Bancorp

     617       11,371  

Meridian Bancorp, Inc.

     2,870       32,732  

Meta Financial Group, Inc.

     1,880       35,081  

MGIC Investment Corp.

     20,384       168,576  

MMA Capital Holdings, Inc.(a)

     195       4,832  

Mr Cooper Group, Inc.(a)(b)

     4,226       69,011  

New York Community Bancorp, Inc.

     26,495       278,992  

NMI Holdings, Inc., Class A(a)

     3,857       59,861  

Northfield Bancorp, Inc.

     2,382       22,891  
 

 

 

42  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (continued)

July 31, 2020

   

iShares Russell Small/Mid-Cap Index Fund

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Thrifts & Mortgage Finance (continued)  

Northwest Bancshares, Inc.

     8,033     $ 79,125  

OceanFirst Financial Corp.

     3,471       53,176  

OP Bancorp

     872       5,424  

PCSB Financial Corp.

     942       10,475  

PennyMac Financial Services, Inc.(g)

     2,823       136,238  

Pioneer Bancorp, Inc.(a)(b)

     699       6,081  

Ponce de Leon Federal Bank(a)

     718       6,534  

Premier Financial Corp.

     2,197       38,843  

Provident Bancorp, Inc.

     357       2,802  

Provident Financial Holdings, Inc.

     238       2,904  

Provident Financial Services, Inc.

     3,433       46,860  

Prudential Bancorp, Inc.

     593       6,642  

Radian Group, Inc.

     11,112       165,791  

Riverview Bancorp, Inc.

     1,280       6,246  

Security National Financial Corp., Class A(a)

     693       4,262  

Southern Missouri Bancorp, Inc.

     443       9,662  

Standard AVB Financial Corp.

     246       4,935  

Sterling Bancorp, Inc.

     690       2,105  

Territorial Bancorp, Inc.

     588       12,918  

TFS Financial Corp.

     3,037       43,976  

Timberland Bancorp, Inc.

     537       8,946  

TrustCo Bank Corp. NY

     5,344       30,942  

Walker & Dunlop, Inc.

     1,643       82,824  

Washington Federal, Inc.

     4,456       104,003  

Waterstone Financial, Inc.

     1,519       23,210  

Western New England Bancorp, Inc.

     1,370       6,905  

WSFS Financial Corp.

     2,972       84,791  
   

 

 

  
    2,649,031  
Tobacco — 0.1%  

Turning Point Brands, Inc.

     412       13,546  

Universal Corp.

     1,418       59,783  

Vector Group Ltd.

     7,685       67,782  
   

 

 

  
    141,111  
Trading Companies & Distributors — 1.1%  

Air Lease Corp.

     6,419       168,306  

Alta Equipment Group, Inc.(a)

     981       7,456  

Applied Industrial Technologies, Inc.

     2,211       139,558  

Beacon Roofing Supply, Inc.(a)

     3,129       97,500  

BMC Stock Holdings, Inc.(a)

     3,851       98,586  

CAI International, Inc.(a)

     1,010       17,382  

DXP Enterprises, Inc.(a)

     1,030       17,386  

EVI Industries, Inc.(a)

     255       6,446  

Foundation Building Materials, Inc.(a)

     1,309       17,973  

GATX Corp.

     1,987       121,187  

General Finance Corp.(a)

     582       3,422  

GMS, Inc.(a)

     2,360       55,295  

H&E Equipment Services, Inc.

     1,873       32,946  

HD Supply Holdings, Inc.(a)(b)

     9,492       333,169  

Herc Holdings, Inc.(a)

     1,423       47,727  

Kaman Corp.

     1,632       64,448  

Lawson Products, Inc.(a)

     217       6,484  

MRC Global, Inc.(a)

     4,587       27,293  

MSC Industrial Direct Co., Inc., Class A

     2,652       175,058  

Nesco Holdings, Inc.(a)

     1,075       3,612  

NOW, Inc.(a)

     6,178       48,683  

Rush Enterprises, Inc., Class A

     1,472       70,038  

Rush Enterprises, Inc., Class B

     335       13,333  

SiteOne Landscape Supply, Inc.(a)(b)

     2,445       313,033  

Textainer Group Holdings Ltd.(a)(b)

     3,057       25,801  

Titan Machinery, Inc.(a)

     920       9,996  

Transcat, Inc.(a)

     318       8,872  

Triton International Ltd.

     2,936       92,396  

Univar Solutions, Inc.(a)(b)

     10,489       185,341  
Security   Shares     Value  
Trading Companies & Distributors (continued)  

Veritiv Corp.(a)

     697     $ 10,671  

Watsco, Inc.

     1,899       448,297  

WESCO International, Inc.(a)

     3,206       124,617  

Willis Lease Finance Corp.(a)

     123       2,398  
   

 

 

  
    2,794,710  
Transportation Infrastructure — 0.1%  

Macquarie Infrastructure Corp.

     4,214       126,251  
   

 

 

  
Water Utilities — 0.4%  

American States Water Co.

     2,193       168,598  

Artesian Resources Corp., Class A

     484       16,979  

Cadiz, Inc.(a)

     909       9,653  

California Water Service Group

     2,979       139,626  

Consolidated Water Co. Ltd.

     675       8,282  

Essential Utilities, Inc.

     12,993       589,232  

Global Water Resources, Inc.

     556       5,777  

Middlesex Water Co.

     982       62,907  

Pure Cycle Corp.(a)(b)

     854       7,712  

SJW Group

     1,507       94,127  

York Water Co.

     754       34,918  
   

 

 

  
    1,137,811  
Wireless Telecommunication Services — 0.1%  

Boingo Wireless, Inc.(a)

     2,361       34,116  

Gogo, Inc.(a)

     4,091       11,905  

Shenandoah Telecommunications Co.

     2,941       147,844  

Spok Holdings, Inc.

     799       8,006  

Telephone & Data Systems, Inc.

     5,825       113,122  

United States Cellular Corp.(a)

     814       24,151  
   

 

 

  
    339,144  
   

 

 

  

Total Common Stocks — 98.3%
(Cost — $232,381,221)

 

     252,617,133  
   

 

 

  

Investment Companies — 0.8%

 

Equity Fund — 0.8%

 

iShares Russell 2000 ETF(b)(g)

     7,159       1,054,950  

iShares Russell Mid-Cap ETF(g)

     17,433       989,672  
   

 

 

  

Total Investment Companies — 0.8%
(Cost — $1,798,313)

 

     2,044,622  
 

 

 

  

Total Long-Term Investments — 99.1%
(Cost — $234,179,534)

 

     254,661,755  
 

 

 

  
    

Par

(000)

         

Short-Term Securities — 9.9%

 

BlackRock Cash Funds: Institutional,
SL Agency Shares,

    

0.43%(e)(f)(g)

   $ 23,578,165       23,604,101  

BlackRock Cash Funds: Treasury,
SL Agency Shares,

    

0.15%(e)(g)

     1,890,700       1,890,700  
   

 

 

  

Total Short-Term Securities — 9.9%
(Cost — $25,473,923)

 

     25,494,801  
   

 

 

  

Total Investments — 109.0%
(Cost — $259,653,457)

 

     280,156,556  

Liabilities in Excess of Other Assets — (9.0)%

 

     (23,141,974 ) 
   

 

 

  

Net Assets — 100.0%

 

   $ 257,014,582  
 

 

 

  

 

(a) 

Non-income producing security.

(b) 

All or a portion of this security is on loan.

 

 

 

SCHEDULES OF INVESTMENTS

   43

Schedule of Investments  (continued)

July 31, 2020

   

iShares Russell Small/Mid-Cap Index Fund

 

(c) 

Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.

(d) 

Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

(e) 

Annualized 7-day yield as of period end.

(f) 

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

(g) 

Investments in issuers considered to be an affiliate/affiliates of the Fund during the year ended July 31, 2020 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliated issuer    Shares
Held at
07/31/19		      Shares
Purchased		      Shares
Sold		      Shares
Held at
07/31/20		      Value at
07/31/20		      Income     

Net

Realized
Gain (Loss) (a)

      Change in
Unrealized
Appreciation
(Depreciation)		  

BlackRock Cash Funds: Institutional, SL Agency Shares

      15,171,717        8,406,448 (b)       —        23,578,165      $ 23,604,101      $ 218,724 (c)     $ (2,729 )     $ 16,499  

BlackRock Cash Funds: Treasury, SL Agency Shares

      1,035,862        854,838 (b)       —        1,890,700        1,890,700        20,518        —        —  

PennyMac Financial Services, Inc.

      —        2,823        —        2,823        136,238        —        —        17,482  

PennyMac Mortgage Investment Trust

      3,109        2,567        (82 )       5,594        105,447        6,704        30        2,737  

iShares Russell 2000 ETF

      4,541        53,767        (51,149 )       7,159        1,054,950        11,998        (204,064 )       109,435  

iShares Russell Mid-Cap ETF

      10,293        135,673        (128,533 )       17,433        989,672        11,480        (181,997 )       108,059  
              

 

 

     

 

 

     

 

 

     

 

 

  
   $ 27,781,108      $ 269,424      $ (388,760 )     $ 254,212  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

  (a) 

Includes net capital gain distributions, if applicable.

 
  (b) 

Represents net shares 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.

 

For Fund compliance purposes, the Fund’s industry classifications refer to one or more of the industry sub-classifications used by one or more widely recognized market

indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such

industry sub-classifications for reporting ease.

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

                    

Russell 2000 E-Mini Index

        13          09/18/20        $ 961        $ (3,201 ) 

S&P 400 E-Mini Index

        8          09/18/20          1,488          2,530  
                   

 

 

  
                    $ (671 ) 
                   

 

 

  

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)

    $ —      $ —      $ 2,530      $ —      $ —      $ —      $ 2,530  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Liabilities — Derivative Financial Instruments

                     

Futures contracts

                     

Unrealized depreciation on futures contracts(a)

    $ —      $ —      $ 3,201      $ —      $ —      $ —      $ 3,201  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

  (a) 

Net cumulative unrealized appreciation (depreciation) on futures contracts and centrally cleared swaps, 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).

 

 

 

44  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (continued)

July 31, 2020

   

iShares Russell Small/Mid-Cap Index Fund

 

For the year ended July 31, 2020, 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:

                     

Future contracts

    $ —      $ —      $ (807,463 )     $ —      $ —      $ —      $ (807,463 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Change in Unrealized Appreciation (Depreciation) on:

                     

Future contracts

    $ —      $ —      $ 2,898      $ —      $ —      $ —      $ 2,898  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

 

Average notional value of contracts — long

    $ 1,957,911  

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 investments and derivative financial instruments. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments, refer to the Notes to Financial Statements.

The following tables summarize the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy:

 

      Level 1        Level 2        Level 3        Total  

Assets:

 

Investments:

 

Long-Term Investments:

 

Common Stocks

   $ 252,617,086        $ —        $ 47        $ 252,617,133  

Investment Companies

     2,044,622          —          —          2,044,622  

Short-Term Securities

     25,494,801          —          —          25,494,801  
  

 

 

       

 

 

       

 

 

       

 

 

  
   $ 280,156,509        $ —        $ 47        $ 280,156,556  
  

 

 

       

 

 

       

 

 

       

 

 

  

Derivative Financial Instruments (a)

 

Assets:

 

Equity contracts

   $ 2,530        $ —        $ —        $ 2,530  

Liabilities:

 

Equity contracts

     (3,201 )         —          —          (3,201 ) 
  

 

 

       

 

 

       

 

 

       

 

 

  
   $ (671 )       $          $          $ (671 ) 
  

 

 

       

 

 

       

 

 

       

 

 

  

The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.

 

  (a) 

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

 

See notes to financial statements.

 

 

SCHEDULES OF INVESTMENTS

   45

Schedule of Investments

July 31, 2020

   

iShares Total U.S. Stock Market Index Fund

(Percentages shown are based on Net Assets)

 

Security   Shares      Value  

Common Stocks — 99.2%

 

Aerospace & Defense — 1.5%  

AAR Corp.

     1,153      $ 19,857  

Aerojet Rocketdyne Holdings, Inc.(a)

     2,660        109,725  

AeroVironment, Inc.(a)

     868        66,445  

Astronics Corp.(a)

     802        6,977  

Axon Enterprise, Inc.(a)

     2,357        195,937  

Boeing Co.

     20,429        3,227,782  

Cubic Corp.

     1,113        46,746  

Curtiss-Wright Corp.

     1,708        152,217  

Ducommun, Inc.(a)

     463        16,645  

General Dynamics Corp.

     9,669        1,418,829  

HEICO Corp.(b)

     1,612        154,946  

HEICO Corp., Class A

     3,002        229,803  

Hexcel Corp.

     3,040        113,392  

Howmet Aerospace, Inc.

     15,000        221,700  

Huntington Ingalls Industries, Inc.

     1,523        264,560  

Kratos Defense & Security Solutions, Inc.(a)

     4,572        82,342  

L3Harris Technologies, Inc.

     8,201        1,380,474  

Lockheed Martin Corp.

     9,451        3,581,646  

Maxar Technologies, Inc.(a)

     1,981        35,242  

Mercury Systems, Inc.(a)(b)

     2,137        165,468  

Moog, Inc., Class A

     1,168        62,745  

National Presto Industries, Inc.

     228        19,469  

Northrop Grumman Corp.

     5,987        1,945,835  

PAE, Inc.(a)

     2,523        19,881  

Park Aerospace Corp.

     658        7,093  

Parsons Corp.(a)(b)

     762        26,541  

Raytheon Technologies Corp.

     54,448        3,086,113  

Spirit AeroSystems Holdings, Inc., Class A

     4,322        84,582  

Teledyne Technologies, Inc.(a)

     1,387        425,393  

Textron, Inc.

     8,945        312,538  

TransDigm Group, Inc.

     1,991        859,276  

Triumph Group, Inc.

     1,724        11,689  

Vectrus, Inc.(a)

     359        15,792  

Virgin Galactic Holdings, Inc.(a)(b)

     2,449        54,980  
    

 

 

  
     18,422,660  
Air Freight & Logistics — 0.6%  

Air Transport Services Group, Inc.(a)

     2,478        60,389  

Atlas Air Worldwide Holdings, Inc.(a)

     1,045        54,424  

C.H. Robinson Worldwide, Inc.

     5,012        469,725  

Echo Global Logistics, Inc.(a)

     852        21,355  

Expeditors International of Washington, Inc.

     6,398        540,695  

FedEx Corp.

     9,235        1,555,174  

Forward Air Corp.

     1,054        54,798  

Hub Group, Inc., Class A(a)

     1,423        75,277  

Park-Ohio Holdings Corp.

     132        1,903  

Radiant Logistics, Inc.(a)

     1,065        4,526  

United Parcel Service, Inc., Class B

     26,941        3,846,097  

XPO Logistics, Inc.(a)

     3,506        263,020  
    

 

 

  
     6,947,383  
Airlines — 0.2%  

Alaska Air Group, Inc.

     4,726        162,763  

Allegiant Travel Co.

     451        50,526  

American Airlines Group, Inc.(b)

     18,845        209,556  

Copa Holdings SA, Class A

     1,182        48,982  

Delta Air Lines, Inc.

     24,301        606,796  

Hawaiian Holdings, Inc.

     1,545        18,370  

JetBlue Airways Corp.(a)(b)

     10,526        108,839  

Mesa Air Group, Inc.(a)

     1,258        3,900  

SkyWest, Inc.

     1,783        46,911  

Southwest Airlines Co.

     22,441        693,202  

Spirit Airlines, Inc.(a)

     3,449        54,529  

United Airlines Holdings, Inc.(a)

     11,102        348,381  
    

 

 

  
     2,352,755  
Security   Shares      Value  
Auto Components — 0.2%  

Adient PLC(a)

     3,025      $ 50,336  

American Axle & Manufacturing Holdings, Inc.(a)

     3,615        25,522  

Aptiv PLC

     10,272        798,648  

BorgWarner, Inc.

     8,012        293,239  

Cooper Tire & Rubber Co.

     1,783        55,380  

Cooper-Standard Holdings, Inc.(a)

     597        6,394  

Dana, Inc.

     6,092        69,631  

Dorman Products, Inc.(a)

     1,032        84,366  

Fox Factory Holding Corp.(a)

     1,495        133,055  

Gentex Corp.

     9,797        264,421  

Gentherm, Inc.(a)

     1,168        45,283  

Goodyear Tire & Rubber Co.

     7,992        72,008  

LCI Industries

     882        110,956  

Lear Corp.

     2,287        252,439  

Modine Manufacturing Co.(a)

     1,640        8,922  

Motorcar Parts of America, Inc.(a)

     702        11,685  

Standard Motor Products, Inc.

     1,011        45,980  

Stoneridge, Inc.(a)

     828        17,156  

Tenneco, Inc., Class A(a)

     1,503        11,137  

Visteon Corp.(a)

     1,019        73,990  

Workhorse Group, Inc.(a)(b)

     2,842        44,108  

XPEL, Inc.(a)

     752        12,656  
    

 

 

  
     2,487,312  
Automobiles — 0.9%  

Ford Motor Co.

     149,785        990,079  

General Motors Co.

     47,786        1,189,394  

Harley-Davidson, Inc.(b)

     6,145        159,954  

Tesla, Inc.(a)

     5,658        8,095,240  

Thor Industries, Inc.(b)

     2,087        237,897  

Winnebago Industries, Inc.(b)

     1,188        71,767  
    

 

 

  
     10,744,331  
Banks — 3.6%  

1st Source Corp.

     411        13,612  

ACNB Corp.

     387        7,972  

Allegiance Bancshares, Inc.

     408        9,951  

Altabancorp

     363        6,806  

Amalgamated Bank, Class A

     666        7,692  

Amerant Bancorp, Inc.(a)

     643        8,584  

American National Bankshares, Inc.

     234        5,139  

Ameris Bancorp

     2,122        48,965  

Ames National Corp.

     233        4,311  

Arrow Financial Corp.

     468        12,776  

Associated Banc-Corp

     5,634        72,341  

Atlantic Capital Bancshares, Inc.(a)

     685        6,850  

Atlantic Union Bankshares Corp.

     3,213        72,517  

BancFirst Corp.

     744        32,409  

Banco Latinoamericano de Comercio Exterior SA

     1,539        17,960  

Bancorp, Inc.(a)

     1,904        17,955  

BancorpSouth Bank

     4,569        95,629  

Bank First Corp.

     309        19,223  

Bank of America Corp.

     296,232        7,370,252  

Bank of Commerce Holdings

     737        5,564  

Bank of Hawaii Corp.

     1,589        89,985  

Bank of Marin Bancorp

     316        9,926  

Bank of NT Butterfield & Son Ltd.

     2,038        53,049  

Bank of Princeton

     383        6,890  

Bank OZK

     4,523        108,778  

BankFinancial Corp.

     603        4,396  

BankUnited, Inc.

     3,569        71,880  

Bankwell Financial Group, Inc.

     364        5,424  

Banner Corp.

     981        34,757  

Bar Harbor Bankshares

     399        7,932  

Baycom Corp.(a)

     382        3,927  
 

 

 

46  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (continued)

July 31, 2020

   

iShares Total U.S. Stock Market Index Fund

(Percentages shown are based on Net Assets)

 

Security   Shares      Value  
Banks (continued)  

BOK Financial Corp.

     1,176      $ 65,503  

Boston Private Financial Holdings, Inc.

     3,138        18,467  

Bridge Bancorp, Inc.

     369        6,675  

Bryn Mawr Bank Corp.

     476        12,395  

Business First Bancshares, Inc.

     348        4,747  

Byline Bancorp, Inc.

     413        5,352  

C&F Financial Corp.

     148        4,344  

Cadence BanCorp

     4,445        34,715  

Cambridge Bancorp

     245        13,277  

Camden National Corp.

     528        16,732  

Capital City Bank Group, Inc.

     363        6,835  

Carter Bank & Trust

     1,048        7,388  

Cathay General Bancorp

     3,357        81,172  

CBTX, Inc.

     506        7,990  

Central Pacific Financial Corp.

     427        6,644  

Central Valley Community Bancorp

     191        2,510  

Century Bancorp, Inc., Class A

     231        16,087  

Chemung Financial Corp.

     179        4,835  

ChoiceOne Financial Services, Inc.

     423        12,056  

CIT Group, Inc.

     3,915        74,268  

Citigroup, Inc.

     79,761        3,988,848  

Citizens & Northern Corp.

     381        6,744  

Citizens Financial Group, Inc.

     16,608        412,044  

City Holding Co.

     442        27,607  

Civista Bancshares, Inc.

     808        10,609  

CNB Financial Corp.

     283        4,621  

Codorus Valley Bancorp, Inc.

     340        3,995  

Columbia Banking System, Inc.

     2,233        64,601  

Comerica, Inc.

     5,394        207,777  

Commerce Bancshares, Inc.

     4,072        233,163  

Community Bank System, Inc.

     1,925        108,243  

Community Trust Bancorp, Inc.

     487        14,907  

ConnectOne Bancorp, Inc.

     960        13,238  

CrossFirst Bankshares, Inc.(a)(b)

     2,745        25,172  

Cullen/Frost Bankers, Inc.

     2,139        154,136  

Customers Bancorp, Inc.(a)

     1,068        12,656  

CVB Financial Corp.

     5,185        93,693  

Eagle Bancorp, Inc.

     1,044        31,404  

East West Bancorp, Inc.

     5,416        187,719  

Enterprise Bancorp, Inc.

     214        4,601  

Enterprise Financial Services Corp.

     1,294        37,604  

Equity Bancshares, Inc., Class A(a)

     361        5,105  

Esquire Financial Holdings, Inc.(a)

     695        10,807  

Farmers & Merchants Bancorp, Inc./Archbold

     246        5,287  

Farmers National Banc Corp.

     551        5,956  

FB Financial Corp.

     520        13,213  

Fidelity D&D Bancorp, Inc.

     168        7,671  

Fifth Third Bancorp

     27,148        539,159  

Financial Institutions, Inc.

     439        6,484  

First Bancorp, Inc.

     314        6,324  

First BanCorp, Puerto Rico

     7,080        38,515  

First Bancorp/Southern Pines

     897        18,532  

First Bancshares, Inc.

     1,176        23,414  

First Bank/Hamilton

     1,767        11,539  

First Busey Corp.

     1,852        31,669  

First Business Financial Services, Inc.

     443        6,587  

First Capital, Inc.

     165        8,829  

First Choice Bancorp

     314        4,751  

First Citizens BancShares, Inc., Class A

     269        114,559  

First Commonwealth Financial Corp.

     3,047        23,980  

First Community Bancshares, Inc.

     576        11,267  

First Financial Bancorp

     3,534        49,176  

First Financial Bankshares, Inc.

     5,165        154,537  

First Financial Corp.

     515        17,216  

First Foundation, Inc.

     1,126        17,307  
Security   Shares      Value  
Banks (continued)  

First Hawaiian, Inc.

     5,055      $ 87,856  

First Horizon National Corp.

     24,886        230,693  

First Internet Bancorp

     258        3,780  

First Interstate Bancsystem, Inc., Class A

     1,728        50,302  

First Merchants Corp.

     2,071        50,595  

First Mid Bancshares, Inc.

     285        6,957  

First Midwest Bancorp, Inc.

     3,526        42,788  

First Northwest Bancorp

     1,308        13,407  

First of Long Island Corp.

     640        9,542  

First Republic Bank

     6,503        731,457  

FNB Corp.

     12,170        90,180  

Franklin Financial Network, Inc.

     413        10,903  

Fulton Financial Corp.

     6,228        60,412  

FVCBankcorp, Inc.(a)

     685        6,754  

German American Bancorp, Inc.

     1,493        42,461  

Glacier Bancorp, Inc.

     3,811        134,566  

Great Southern Bancorp, Inc.

     266        9,595  

Great Western Bancorp, Inc.

     1,846        23,998  

Guaranty Bancshares, Inc.

     270        7,317  

Hancock Whitney Corp.

     3,184        60,687  

Hanmi Financial Corp.

     907        8,372  

HarborOne Bancorp, Inc.(a)

     4,354        37,706  

Heartland Financial USA, Inc.

     1,223        38,207  

Heritage Commerce Corp.

     1,357        9,200  

Heritage Financial Corp.

     1,053        19,918  

Home BancShares, Inc.

     5,919        96,657  

HomeTrust Bancshares, Inc.

     642        9,258  

Hope Bancorp, Inc.

     3,638        30,668  

Horizon Bancorp

     897        9,069  

Howard Bancorp, Inc.(a)

     467        4,441  

Huntington Bancshares, Inc.

     40,977        379,857  

Independent Bank Corp.

     2,109        90,320  

Independent Bank Group, Inc.

     1,357        59,613  

International Bancshares Corp.

     2,159        65,677  

Investar Holding Corp.

     897        11,957  

Investors Bancorp, Inc.

     8,514        69,134  

JPMorgan Chase & Co.

     115,995        11,209,757  

KeyCorp

     37,766        453,570  

Lakeland Bancorp, Inc.

     1,021        10,394  

Lakeland Financial Corp.

     1,121        49,615  

LCNB Corp.

     345        4,319  

Live Oak Bancshares, Inc.

     747        12,706  

M&T Bank Corp.

     4,978        527,419  

Macatawa Bank Corp.

     816        5,875  

MainStreet Bancshares, Inc.(a)

     536        6,930  

Mercantile Bank Corp.

     497        10,581  

Metrocity Bankshares, Inc.

     765        10,312  

Metropolitan Bank Holding Corp.(a)

     180        5,324  

Midland States Bancorp, Inc.

     963        13,569  

MidWestOne Financial Group, Inc.

     266        4,809  

National Bank Holdings Corp., Class A

     890        24,724  

National Bankshares, Inc.

     185        4,640  

NBT Bancorp, Inc.

     1,281        38,161  

Nicolet Bankshares, Inc.(a)

     324        18,150  

Northrim BanCorp, Inc.

     226        5,203  

Norwood Financial Corp.

     331        8,017  

Oak Valley Bancorp

     65        832  

OFG Bancorp

     1,912        25,009  

Ohio Valley Banc Corp.

     173        3,408  

Old National Bancorp

     5,681        79,477  

Old Second Bancorp, Inc.

     606        5,042  

Origin Bancorp, Inc.

     454        10,778  

Orrstown Financial Services, Inc.

     348        4,733  

Pacific Premier Bancorp, Inc.

     5,193        109,105  

PacWest Bancorp

     4,991        91,211  
 

 

 

SCHEDULES OF INVESTMENTS

   47

Schedule of Investments  (continued)

July 31, 2020

   

iShares Total U.S. Stock Market Index Fund

(Percentages shown are based on Net Assets)

 

Security   Shares      Value  
Banks (continued)  

Park National Corp.

     615      $ 52,742  

Peapack Gladstone Financial Corp.

     523        8,514  

Penns Woods Bancorp, Inc.

     243        4,909  

People’s United Financial, Inc.

     17,299        186,656  

Peoples Bancorp, Inc.

     664        13,326  

Peoples Financial Services Corp.

     169        6,069  

Pinnacle Financial Partners, Inc.

     3,063        121,356  

PNC Financial Services Group, Inc.

     16,320        1,740,854  

Popular, Inc.

     3,484        129,291  

Preferred Bank

     405        15,086  

Premier Financial Bancorp, Inc.

     500        5,300  

Prosperity Bancshares, Inc.

     3,532        196,238  

QCR Holdings, Inc.

     413        12,340  

RBB Bancorp

     350        4,480  

Red River Bancshares, Inc.

     282        11,291  

Regions Financial Corp.

     37,721        409,650  

Reliant Bancorp Inc.

     315        4,646  

Renasant Corp.

     1,899        44,114  

Republic Bancorp, Inc., Class A

     204        6,165  

Republic First Bancorp, Inc.(a)

     1,213        2,826  

S&T Bancorp, Inc.

     1,347        28,961  

Sandy Spring Bancorp, Inc.

     3,516        81,290  

Seacoast Banking Corp. of Florida(a)

     1,610        30,397  

Select Bancorp, Inc.(a)

     1,948        15,214  

ServisFirst Bancshares, Inc.

     2,629        96,195  

Sierra Bancorp

     304        5,344  

Signature Bank

     2,101        215,416  

Silvergate Capital Corp., Class A(a)(b)

     833        11,387  

Simmons First National Corp., Class A

     3,421        56,754  

SmartFinancial, Inc.

     348        4,962  

South State Corp.

     2,712        129,254  

Southern First Bancshares, Inc.(a)

     161        3,928  

Southern National Bancorp of Virginia, Inc.

     518        4,362  

Southside Bancshares, Inc.

     1,208        33,462  

Spirit of Texas Bancshares, Inc.(a)

     929        10,823  

Sterling Bancorp

     7,510        84,488  

Stock Yards Bancorp, Inc.

     675        26,386  

Summit Financial Group, Inc.

     488        7,340  

SVB Financial Group(a)

     1,995        447,419  

Synovus Financial Corp.

     5,771        116,286  

TCF Financial Corp.

     5,888        161,861  

Texas Capital Bancshares, Inc.(a)

     1,902        63,184  

Tompkins Financial Corp.

     571        36,847  

TowneBank

     2,464        43,465  

Trico Bancshares

     1,297        36,316  

TriState Capital Holdings, Inc.(a)

     771        10,216  

Triumph Bancorp, Inc.(a)

     785        20,567  

Truist Financial Corp.

     51,479        1,928,403  

Trustmark Corp.

     2,824        63,596  

U.S. Bancorp

     52,333        1,927,948  

UMB Financial Corp.

     1,754        87,349  

Umpqua Holdings Corp.

     8,017        86,984  

United Bankshares, Inc.

     4,794        126,178  

United Community Banks, Inc.

     2,390        42,853  

Unity Bancorp, Inc.

     498        6,230  

Univest Financial Corp.

     855        13,073  

Valley National Bancorp

     14,971        111,833  

Veritex Holdings, Inc.

     1,506        25,180  

Washington Trust Bancorp, Inc.

     445        14,836  

Webster Financial Corp.

     3,366        91,791  

Wells Fargo & Co.

     143,728        3,486,841  

WesBanco, Inc.

     4,505        89,334  

West BanCorp., Inc.

     346        5,678  

Westamerica BanCorp

     987        59,575  

Western Alliance Bancorp

     3,980        143,081  
Security   Shares      Value  
Banks (continued)  

Wintrust Financial Corp.

     2,100      $ 89,880  

Zions Bancorp. NA

     6,305        204,723  
    

 

 

  
     44,142,027  
Beverages — 1.5%  

Boston Beer Co., Inc., Class A(a)

     325        263,393  

Brown-Forman Corp., Class A

     1,920        121,421  

Brown-Forman Corp., Class B

     6,718        465,826  

Celsius Holdings, Inc.(a)

     1,729        25,364  

Coca-Cola Co.

     147,931        6,988,260  

Coca-Cola Consolidated, Inc.(b)

     158        36,270  

Constellation Brands, Inc., Class A

     6,103        1,087,555  

Craft Brew Alliance, Inc.(a)

     284        4,206  

Keurig Dr Pepper, Inc.

     12,995        397,517  

MGP Ingredients, Inc.(b)

     444        16,104  

Molson Coors Beverage Co., Class B

     6,741        252,922  

Monster Beverage Corp.(a)

     14,150        1,110,492  

National Beverage Corp.(a)(b)

     405        25,981  

New Age Beverages Corp.

     4,799        10,894  

PepsiCo, Inc.

     53,071        7,305,754  

Primo Water Corp.

     6,214        88,301  
    

 

 

  
     18,200,260  
Biotechnology — 3.0%  

89bio, Inc.(a)

     289        8,780  

AbbVie, Inc.

     67,399        6,396,839  

Abeona Therapeutics, Inc.(a)

     977        2,784  

ACADIA Pharmaceuticals, Inc.(a)

     4,267        177,379  

Acceleron Pharma, Inc.(a)(b)

     1,725        171,068  

ADMA Biologics, Inc.(a)(b)

     2,777        9,914  

Aduro Biotech, Inc.(a)

     2,001        5,643  

Adverum Biotechnologies, Inc.(a)

     2,687        45,061  

Aeglea BioTherapeutics, Inc.(a)

     2,074        14,207  

Affimed NV(a)

     4,124        14,558  

Agenus, Inc.(a)

     5,277        16,042  

Agios Pharmaceuticals, Inc.(a)

     2,338        105,958  

Aimmune Therapeutics, Inc.(a)(b)

     1,750        23,117  

Akcea Therapeutics, Inc.(a)(b)

     393        4,260  

Akebia Therapeutics, Inc.(a)

     4,847        54,141  

Akero Therapeutics, Inc.(a)

     450        15,800  

Albireo Pharma, Inc.(a)(b)

     285        8,054  

Alector, Inc.(a)(b)

     1,848        28,958  

Alexion Pharmaceuticals, Inc.(a)

     8,136        833,859  

Alkermes PLC(a)

     5,821        104,836  

Allakos, Inc.(a)(b)

     940        70,566  

Allogene Therapeutics, Inc.(a)

     1,876        68,793  

Alnylam Pharmaceuticals, Inc.(a)(b)

     4,392        640,178  

AMAG Pharmaceuticals, Inc.(a)

     1,090        10,415  

Amgen, Inc.

     22,533        5,513,149  

Amicus Therapeutics, Inc.(a)

     9,878        142,737  

AnaptysBio, Inc.(a)

     865        15,535  

Anavex Life Sciences Corp.(a)(b)

     2,552        10,769  

Apellis Pharmaceuticals, Inc.(a)

     2,124        54,990  

Applied Therapeutics, Inc.(a)

     339        8,746  

Aprea Therapeutics, Inc.(a)

     341        9,354  

Arcturus Therapeutics Holdings Ltd.(a)

     495        25,854  

Arcus Biosciences, Inc.(a)

     1,371        26,981  

Arcutis Biotherapeutics, Inc.(a)(b)

     480        12,816  

Ardelyx, Inc.(a)

     2,213        12,503  

Arena Pharmaceuticals, Inc.(a)

     2,196        134,812  

Arrowhead Pharmaceuticals, Inc.(a)

     3,722        160,307  

Atara Biotherapeutics, Inc.(a)

     2,603        32,251  

Athenex, Inc.(a)

     2,643        28,042  

Athersys, Inc.(a)(b)

     6,963        17,825  

Atreca, Inc., Class A(a)(b)

     737        9,544  

Avid Bioservices, Inc.(a)

     2,581        19,151  
 

 

 

48  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (continued)

July 31, 2020

   

iShares Total U.S. Stock Market Index Fund

(Percentages shown are based on Net Assets)

 

Security   Shares      Value  
Biotechnology (continued)  

Avrobio, Inc.(a)

     924      $ 15,662  

Beam Therapeutics, Inc.(a)(b)

     609        11,778  

Beyondspring, Inc.(a)(b)

     425        4,688  

BioCryst Pharmaceuticals, Inc.(a)

     7,146        29,084  

Biogen, Inc.(a)

     6,232        1,711,868  

Biohaven Pharmaceutical Holding Co. Ltd.(a)

     1,815        116,233  

BioMarin Pharmaceutical, Inc.(a)

     6,918        828,846  

Biospecifics Technologies Corp.(a)

     302        18,923  

Bioxcel Therapeutics, Inc.(a)

     439        19,913  

Black Diamond Therapeutics, Inc.(a)(b)

     546        15,190  

Bluebird Bio, Inc.(a)

     2,523        153,146  

Blueprint Medicines Corp.(a)

     2,112        154,556  

Bridgebio Pharma, Inc.(a)

     2,758        77,610  

Calithera Biosciences, Inc.(a)

     1,548        7,276  

CareDx, Inc.(a)

     1,775        59,196  

CASI Pharmaceuticals, Inc.(a)

     1,541        2,974  

Castle Biosciences, Inc.(a)

     400        15,488  

Catalyst Pharmaceuticals, Inc.(a)

     2,952        12,694  

CEL-SCI Corp.(a)(b)

     1,266        15,838  

Cellular Biomedicine Group, Inc.(a)

     498        6,559  

ChemoCentryx, Inc.(a)

     1,606        84,652  

Chiasma, Inc.(a)

     2,036        8,897  

Chimerix, Inc.(a)

     931        2,895  

Clovis Oncology, Inc.(a)(b)

     1,948        11,279  

Coherus Biosciences, Inc.(a)

     2,172        38,205  

Concert Pharmaceuticals, Inc.(a)(b)

     677        6,276  

Constellation Pharmaceuticals, Inc.(a)

     777        20,894  

Corbus Pharmaceuticals Holdings, Inc.(a)

     3,028        18,986  

Cortexyme, Inc.(a)

     681        27,138  

Crinetics Pharmaceuticals, Inc.(a)

     1,292        17,933  

Cue Biopharma, Inc.(a)

     690        13,048  

Cyclerion Therapeutics, Inc.(a)

     437        1,669  

Cytokinetics, Inc.(a)

     2,192        47,391  

CytomX Therapeutics, Inc.(a)

     1,362        9,548  

Deciphera Pharmaceuticals, Inc.(a)

     1,434        66,495  

Denali Therapeutics, Inc.(a)

     2,477        58,011  

Dicerna Pharmaceuticals, Inc.(a)

     2,371        50,976  

Dyadic International, Inc.(a)

     1,211        10,511  

Dynavax Technologies Corp.(a)(b)

     3,907        31,686  

Eagle Pharmaceuticals, Inc.(a)

     326        15,123  

Editas Medicine, Inc.(a)(b)

     2,354        69,113  

Eidos Therapeutics, Inc.(a)

     423        16,962  

Eiger Biopharmaceuticals, Inc.(a)

     1,014        10,191  

Emergent Biosolutions, Inc.(a)

     1,710        190,220  

Enanta Pharmaceuticals, Inc.(a)

     870        39,889  

Epizyme, Inc.(a)

     3,608        49,935  

Esperion Therapeutics, Inc.(a)(b)

     1,000        37,630  

Evelo Biosciences, Inc.(a)

     1,111        4,233  

Exact Sciences Corp.(a)

     5,713        541,307  

Exelixis, Inc.(a)

     11,341        261,864  

Fate Therapeutics, Inc.(a)

     2,313        72,328  

FibroGen, Inc.(a)(b)

     3,014        121,977  

Five Prime Therapeutics, Inc.(a)

     1,283        7,570  

Flexion Therapeutics, Inc.(a)(b)

     1,134        15,388  

Frequency Therapeutics, Inc.(a)

     1,215        25,685  

G1 Therapeutics, Inc.(a)(b)

     1,196        17,545  

Galectin Therapeutics, Inc.(a)(b)

     3,667        9,571  

Geron Corp.(a)(b)

     4,974        7,909  

Gilead Sciences, Inc.

     48,077        3,342,794  

Global Blood Therapeutics, Inc.(a)(b)

     2,239        151,088  

GlycoMimetics, Inc.(a)

     1,052        4,145  

Gossamer Bio, Inc.(a)

     1,391        16,581  

Gritstone Oncology, Inc.(a)

     1,243        3,984  

Halozyme Therapeutics, Inc.(a)

     5,484        149,110  

Harpoon Therapeutics, Inc.(a)

     690        7,597  
Security   Shares      Value  
Biotechnology (continued)  

Heron Therapeutics, Inc.(a)(b)

     3,694      $ 60,175  

Homology Medicines, Inc.(a)

     970        12,756  

Ideaya Biosciences, Inc.(a)

     828        10,441  

IGM Biosciences, Inc.(a)

     263        13,218  

ImmunoGen, Inc.(a)

     7,516        30,891  

Immunomedics, Inc.(a)

     7,866        332,181  

Immunovant, Inc.(a)

     726        16,415  

Incyte Corp.(a)

     6,991        690,431  

Inovio Pharmaceuticals, Inc.(a)(b)

     5,462        106,181  

Insmed, Inc.(a)

     3,970        103,696  

Intellia Therapeutics, Inc.(a)(b)

     1,897        33,786  

Intercept Pharmaceuticals, Inc.(a)

     997        45,503  

Invitae Corp.(a)(b)

     4,513        131,780  

Ionis Pharmaceuticals, Inc.(a)

     4,917        283,023  

Iovance Biotherapeutics, Inc.(a)

     5,216        151,629  

Ironwood Pharmaceuticals, Inc.(a)

     7,031        64,474  

Kadmon Holdings, Inc.(a)

     5,651        20,683  

KalVista Pharmaceuticals, Inc.(a)

     672        6,606  

Karuna Therapeutics, Inc.(a)(b)

     589        48,180  

Karyopharm Therapeutics, Inc.(a)

     2,939        47,171  

Kezar Life Sciences, Inc.(a)

     643        2,810  

Kindred Biosciences, Inc.(a)

     898        2,954  

Kiniksa Pharmaceuticals Ltd., Class A(a)

     935        18,251  

Kodiak Sciences, Inc.(a)(b)

     1,060        49,110  

Krystal Biotech, Inc.(a)

     333        13,750  

Kura Oncology, Inc.(a)

     2,314        38,042  

La Jolla Pharmaceutical Co.(a)(b)

     594        2,364  

Lexicon Pharmaceuticals, Inc.(a)(b)

     1,529        2,966  

Ligand Pharmaceuticals, Inc.(a)(b)

     631        73,941  

MacroGenics, Inc.(a)

     1,804        45,822  

Madrigal Pharmaceuticals, Inc.(a)

     383        39,300  

Magenta Therapeutics, Inc.(a)

     606        4,254  

MannKind Corp.(a)

     10,087        15,736  

MediciNova, Inc.(a)

     1,426        8,870  

MEI Pharma, Inc.(a)

     4,856        13,475  

MeiraGTx Holdings PLC(a)

     593        7,703  

Mersana Therapeutics, Inc.(a)(b)

     1,864        37,056  

Minerva Neurosciences, Inc.(a)

     1,232        4,294  

Mirati Therapeutics, Inc.(a)

     1,408        170,804  

Moderna, Inc.(a)(b)

     10,263        760,488  

Molecular Templates, Inc.(a)

     873        9,577  

Momenta Pharmaceuticals, Inc.(a)

     4,409        130,021  

Morphic Holding, Inc.(a)

     614        13,821  

Myriad Genetics, Inc.(a)

     3,078        37,151  

NantKwest, Inc.(a)(b)

     1,092        12,209  

Natera, Inc.(a)

     2,672        128,309  

Neoleukin Therapeutics, Inc.(a)

     1,127        10,909  

Neurocrine Biosciences, Inc.(a)

     3,505        421,862  

NextCure, Inc.(a)

     521        4,647  

Novavax, Inc.(a)

     2,213        316,680  

OPKO Health, Inc.(a)(b)

     16,728        86,149  

Oyster Point Pharma, Inc.(a)

     333        7,449  

Passage Bio, Inc.(a)

     603        9,431  

PDL BioPharma, Inc.(a)(b)

     4,251        13,518  

Pfenex, Inc.(a)

     1,408        9,983  

Pieris Pharmaceuticals, Inc.(a)

     1,775        4,562  

Precigen, Inc.(a)(b)

     2,222        9,355  

Precision BioSciences, Inc.(a)

     1,437        9,139  

Prevail Therapeutics, Inc.(a)

     791        11,841  

Principia Biopharma, Inc.(a)

     1,170        97,812  

Protagonist Therapeutics, Inc.(a)

     857        13,481  

Prothena Corp. PLC(a)

     1,072        13,121  

PTC Therapeutics, Inc.(a)

     2,470        114,435  

Puma Biotechnology, Inc.(a)

     955        9,846  

Radius Health, Inc.(a)

     1,660        20,833  
 

 

 

SCHEDULES OF INVESTMENTS

   49

Schedule of Investments  (continued)

July 31, 2020

   

iShares Total U.S. Stock Market Index Fund

(Percentages shown are based on Net Assets)

 

Security   Shares      Value  
Biotechnology (continued)  

Rapt Therapeutics, Inc.(a)

     500      $ 10,800  

Recro Pharma, Inc.(a)

     902        3,689  

Regeneron Pharmaceuticals, Inc.(a)

     3,699        2,338,027  

REGENXBIO, Inc.(a)

     1,239        41,011  

Replimune Group, Inc.(a)

     874        17,454  

Retrophin, Inc.(a)

     1,474        29,303  

Revolution Medicines, Inc.(a)

     636        15,340  

Rhythm Pharmaceuticals, Inc.(a)

     1,776        34,135  

Rigel Pharmaceuticals, Inc.(a)

     5,790        13,317  

Rocket Pharmaceuticals, Inc.(a)(b)

     1,295        30,471  

Rubius Therapeutics, Inc.(a)(b)

     1,723        8,460  

Sage Therapeutics, Inc.(a)

     2,081        94,831  

Sangamo Therapeutics, Inc.(a)

     4,375        47,381  

Sarepta Therapeutics, Inc.(a)

     2,850        437,532  

Savara, Inc.(a)

     756        1,504  

Scholar Rock Holding Corp.(a)

     553        6,243  

Seattle Genetics, Inc.(a)

     4,660        774,818  

Seres Therapeutics, Inc.(a)

     2,559        9,571  

Solid Biosciences, Inc.(a)

     285        750  

Sorrento Therapeutics, Inc.(a)(b)

     7,666        68,381  

Spectrum Pharmaceuticals, Inc.(a)

     4,590        13,724  

Spero Therapeutics, Inc.(a)

     858        10,039  

SpringWorks Therapeutics, Inc.(a)

     863        36,790  

Stoke Therapeutics, Inc.(a)

     449        11,310  

Syndax Pharmaceuticals, Inc.(a)

     893        12,600  

Syros Pharmaceuticals, Inc.(a)

     1,897        18,003  

TCR2 Therapeutics, Inc.(a)

     664        11,122  

TG Therapeutics, Inc.(a)(b)

     3,494        68,413  

Translate Bio, Inc.(a)

     2,093        31,793  

Turning Point Therapeutics, Inc.(a)

     1,005        59,526  

Twist Bioscience Corp.(a)

     1,235        69,209  

Tyme Technologies, Inc.(a)

     7,772        9,249  

Ultragenyx Pharmaceutical, Inc.(a)(b)

     2,196        171,639  

United Therapeutics Corp.(a)

     1,660        185,040  

UNITY Biotechnology, Inc.(a)

     1,493        14,079  

UroGen Pharma Ltd.(a)(b)

     839        18,534  

Vanda Pharmaceuticals, Inc.(a)(b)

     1,628        16,410  

VBI Vaccines, Inc.(a)

     9,724        39,577  

Veracyte, Inc.(a)

     2,193        78,224  

Verastem, Inc.(a)(b)

     8,381        11,231  

Vericel Corp.(a)

     1,620        26,714  

Vertex Pharmaceuticals, Inc.(a)

     9,940        2,703,680  

Viela Bio, Inc.(a)(b)

     817        29,910  

Viking Therapeutics, Inc.(a)

     2,199        15,437  

Vir Biotechnology, Inc.(a)(b)

     1,779        84,965  

Voyager Therapeutics, Inc.(a)

     667        7,384  

X4 Pharmaceuticals, Inc.(a)

     1,130        8,385  

XBiotech, Inc.(a)(b)

     663        9,640  

Xencor, Inc.(a)

     2,385        71,765  

Y-mAbs Therapeutics, Inc.(a)

     1,225        43,034  

Zentalis Pharmaceuticals, Inc.(a)

     392        13,524  

ZIOPHARM Oncology, Inc.(a)

     9,111        27,060  
    

 

 

  
     37,008,706  
Building Products — 0.5%  

AAON, Inc.

     1,548        91,719  

Advanced Drainage Systems, Inc.

     1,891        92,659  

Allegion PLC

     3,554        353,481  

Alpha Pro Tech Ltd.(a)

     674        14,673  

Ameresco, Inc., Class A(a)

     824        22,808  

American Woodmark Corp.(a)

     609        49,098  

AO Smith Corp.

     5,009        241,133  

Apogee Enterprises, Inc.

     840        18,136  

Armstrong World Industries, Inc.

     1,939        138,134  

Builders FirstSource, Inc.(a)

     4,108        97,319  
Security   Shares      Value  
Building Products (continued)  

Caesarstone Ltd.

     516      $ 5,919  

Carrier Global Corp.

     32,932        897,068  

Cornerstone Building Brands, Inc.(a)

     1,292        7,326  

CSW Industrials, Inc.

     651        43,480  

Fortune Brands Home & Security, Inc.

     5,358        409,887  

Gibraltar Industries, Inc.(a)

     1,147        59,323  

Griffon Corp.

     1,493        34,145  

Insteel Industries, Inc.

     524        9,767  

JELD-WEN Holding, Inc.(a)

     2,185        42,826  

Johnson Controls International PLC

     28,478        1,095,833  

Lennox International, Inc.

     1,321        354,213  

Masco Corp.

     10,034        573,543  

Masonite International Corp.(a)

     1,016        85,700  

Owens Corning

     4,105        248,229  

Patrick Industries, Inc.

     762        48,730  

PGT Innovations, Inc.(a)

     2,429        41,463  

Quanex Building Products Corp.

     1,001        14,064  

Resideo Technologies, Inc.(a)

     5,039        66,918  

Simpson Manufacturing Co., Inc.

     1,608        155,269  

Trane Technologies PLC

     9,082        1,016,003  

Trex Co., Inc.(a)

     2,259        314,746  

UFP Industries, Inc.

     2,263        131,752  
    

 

 

  
     6,775,364  
Capital Markets — 2.5%  

Affiliated Managers Group, Inc.

     1,796        123,547  

Ameriprise Financial, Inc.

     4,761        731,432  

Apollo Global Management, Inc.

     6,407        314,584  

Ares Management Corp., Class A

     3,604        143,944  

Arlington Asset Investment Corp., Class A

     839        2,282  

Artisan Partners Asset Management, Inc., Class A

     2,234        80,938  

AssetMark Financial Holdings(a)

     403        11,224  

Associated Capital Group, Inc., Class A

     82        3,316  

B. Riley Financial, Inc.

     660        16,837  

Bank of New York Mellon Corp.

     30,563        1,095,684  

BGC Partners, Inc., Class A

     10,851        30,057  

BlackRock, Inc.(g)

     5,630        3,237,306  

Blucora, Inc.(a)

     1,592        18,770  

BrightSphere Investment Group PLC(a)

     2,330        31,315  

Carlyle Group, Inc.

     4,383        124,784  

Cboe Global Markets, Inc.

     4,240        371,848  

Charles Schwab Corp.

     44,168        1,464,169  

CME Group, Inc.

     13,580        2,256,724  

Cohen & Steers, Inc.

     970        58,375  

Cowen, Inc., Class A

     773        12,731  

Diamond Hill Investment Group, Inc.

     101        11,517  

Donnelley Financial Solutions, Inc.(a)

     1,284        11,107  

E*Trade Financial Corp.

     8,505        431,799  

Eaton Vance Corp.

     4,040        146,006  

Evercore, Inc., Class A

     1,624        89,807  

Federated Hermes, Inc.

     3,978        104,860  

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

     1,369        50,585  

Franklin Resources, Inc.

     10,373        218,352  

GAMCO Investors, Inc., Class A

     133        1,568  

Goldman Sachs Group, Inc.

     12,618        2,497,859  

Greenhill & Co., Inc.

     768        9,201  

Hamilton Lane, Inc., Class A

     821        59,309  

Hannon Armstrong Sustainable Infrastructure Capital, Inc.

     2,502        87,645  

Houlihan Lokey, Inc.

     1,703        93,324  

Intercontinental Exchange, Inc.

     20,647        1,998,217  

Invesco Ltd.

     13,988        140,439  

KKR & Co., Inc., Class A

     20,019        708,072  

Lazard Ltd., Class A

     3,645        106,871  

Legg Mason, Inc.

     3,282        164,067  
 

 

 

50  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (continued)

July 31, 2020

   

iShares Total U.S. Stock Market Index Fund

(Percentages shown are based on Net Assets)

 

Security   Shares      Value  
Capital Markets (continued)  

LPL Financial Holdings, Inc.

     2,987      $ 236,033  

MarketAxess Holdings, Inc.

     1,395        720,796  

Moelis & Co., Class A

     2,204        65,657  

Moody’s Corp.

     6,155        1,731,401  

Morgan Stanley

     42,062        2,055,991  

MSCI, Inc.

     3,160        1,188,097  

Nasdaq, Inc.

     4,332        568,835  

Northern Trust Corp.

     7,371        577,518  

Oppenheimer Holdings, Inc., Class A

     269        5,700  

Piper Sandler Cos

     929        57,514  

PJT Partners, Inc., Class A

     1,005        53,798  

Pzena Investment Management, Inc., Class A

     1,238        6,487  

Raymond James Financial, Inc.

     4,802        333,643  

S&P Global, Inc.

     9,166        3,210,391  

Safeguard Scientifics, Inc.

     589        3,351  

Sculptor Capital Management, Inc.

     904        11,237  

SEI Investments Co.

     4,531        237,107  

State Street Corp.

     13,416        855,807  

Stifel Financial Corp.

     2,494        120,909  

Stonex Group, Inc.(a)

     561        29,441  

T. Rowe Price Group, Inc.

     8,637        1,192,770  

TD Ameritrade Holding Corp.

     9,884        354,737  

Tradeweb Markets, Inc., Class A

     3,106        167,941  

Virtu Financial, Inc., Class A

     2,551        63,265  

Virtus Investment Partners, Inc.

     267        36,291  

Waddell & Reed Financial, Inc., Class A

     2,763        40,312  

Westwood Holdings Group, Inc.

     168        1,908  

WisdomTree Investments, Inc.

     7,586        27,310  
    

 

 

  
     31,014,719  
Chemicals — 1.8%  

Advanced Emissions Solutions, Inc.

     1,200        4,992  

AdvanSix, Inc.(a)

     1,050        13,073  

Air Products & Chemicals, Inc.

     8,437        2,418,297  

Albemarle Corp.

     4,051        334,045  

American Vanguard Corp.

     632        8,507  

Ashland Global Holdings, Inc.

     2,076        156,697  

Avient Corp.

     3,629        86,733  

Axalta Coating Systems Ltd.(a)

     8,070        179,154  

Balchem Corp.

     1,257        126,027  

Cabot Corp.

     1,967        71,756  

Celanese Corp.

     4,626        449,647  

CF Industries Holdings, Inc.

     8,468        265,302  

Chase Corp.

     398        40,023  

Chemours Co.

     6,459        119,685  

Codexis, Inc.(a)

     1,582        18,715  

Corteva, Inc.(a)

     28,755        821,243  

Dow, Inc.(a)

     28,359        1,164,421  

DuPont de Nemours, Inc.

     28,135        1,504,660  

Eastman Chemical Co.

     5,196        387,778  

Ecolab, Inc.

     9,542        1,785,117  

Element Solutions, Inc.(a)

     8,319        90,344  

Ferro Corp.(a)

     2,525        29,517  

FMC Corp.

     4,929        522,720  

FutureFuel Corp.

     633        8,343  

GCP Applied Technologies, Inc.(a)

     1,984        45,275  

Hawkins, Inc.

     210        10,821  

HB Fuller Co.

     2,406        109,088  

Huntsman Corp.

     7,868        145,558  

Ingevity Corp.(a)

     1,501        87,778  

Innospec, Inc.

     862        64,797  

International Flavors & Fragrances, Inc.

     4,057        510,979  

Intrepid Potash, Inc.(a)

     2,818        2,553  

Koppers Holdings, Inc.(a)

     682        17,166  

Kraton Corp.(a)

     1,033        13,584  
Security   Shares      Value  
Chemicals (continued)  

Kronos Worldwide, Inc.

     777      $ 8,733  

Landec Corp.(a)

     899        8,487  

Linde PLC

     20,074        4,920,338  

Livent Corp.(a)

     5,602        35,125  

LyondellBasell Industries NV, Class A

     9,829        614,509  

Minerals Technologies, Inc.

     1,323        62,022  

Mosaic Co.

     12,667        170,625  

NewMarket Corp.

     266        99,699  

Olin Corp.

     5,829        65,518  

Orion Engineered Carbons SA

     2,251        22,960  

PPG Industries, Inc.

     9,030        972,080  

PQ Group Holdings, Inc.(a)

     1,043        12,798  

Quaker Chemical Corp.

     468        90,792  

Rayonier Advanced Materials, Inc.

     1,732        5,040  

RPM International, Inc.

     4,868        397,180  

Scotts Miracle-Gro Co.

     1,563        247,845  

Sensient Technologies Corp.

     1,918        100,139  

Sherwin-Williams Co.

     3,153        2,042,892  

Stepan Co.

     804        87,797  

Trecora Resources(a)

     733        4,215  

Tredegar Corp.

     681        10,814  

Trinseo SA

     1,460        31,682  

Tronox Holdings PLC, Class A(a)

     3,493        26,617  

Valvoline, Inc.

     7,395        151,745  

Westlake Chemical Corp.

     1,293        70,469  

WR Grace & Co.

     2,326        107,298  
    

 

 

  
     21,981,814  
Commercial Services & Supplies — 0.5%  

ABM Industries, Inc.

     2,523        90,576  

ACCO Brands Corp.

     3,640        23,733  

ADT, Inc.

     4,546        39,141  

Advanced Disposal Services, Inc.(a)

     2,658        80,165  

BrightView Holdings, Inc.(a)

     1,198        14,520  

Brink’s Co.

     2,054        91,095  

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

     1,808        100,181  

CECO Environmental Corp.(a)

     925        6,197  

Cimpress PLC(a)

     753        75,300  

Cintas Corp.

     3,367        1,016,396  

Clean Harbors, Inc.(a)

     2,111        125,816  

Copart, Inc.(a)

     7,667        714,948  

Covanta Holding Corp.

     5,328        52,427  

Deluxe Corp.

     1,445        40,792  

Encore Capital Group, Inc.(a)

     1,209        44,165  

Ennis, Inc.

     1,476        25,535  

Harsco Corp.(a)

     2,574        41,081  

Healthcare Services Group, Inc.

     2,819        73,830  

Heritage-Crystal Clean, Inc.(a)

     397        5,530  

Herman Miller, Inc.

     2,044        47,891  

HNI Corp.

     1,510        44,847  

IAA, Inc.(a)

     5,093        220,782  

Interface, Inc.

     1,828        14,587  

KAR Auction Services, Inc.

     4,804        72,684  

Kimball International, Inc., Class B

     1,050        11,487  

Knoll, Inc.

     1,883        22,050  

McGrath RentCorp

     922        53,494  

MSA Safety, Inc.

     1,376        163,097  

Pitney Bowes, Inc.

     5,809        19,402  

Quad/Graphics, Inc.

     1,100        3,421  

Republic Services, Inc.

     8,154        711,436  

Rollins, Inc.

     5,759        301,772  

SP Plus Corp.(a)

     647        10,281  

Steelcase, Inc., Class A

     3,210        34,443  

Stericycle, Inc.(a)

     3,512        212,248  

Sykes Enterprises, Inc.(a)

     1,447        39,735  
 

 

 

SCHEDULES OF INVESTMENTS

   51

Schedule of Investments  (continued)

July 31, 2020

   

iShares Total U.S. Stock Market Index Fund

(Percentages shown are based on Net Assets)

 

Security   Shares      Value  
Commercial Services & Supplies (continued)  

Team, Inc.(a)

     945      $ 3,733  

Tetra Tech, Inc.

     2,090        185,278  

UniFirst Corp.

     604        112,634  

US Ecology, Inc.

     1,069        37,073  

Viad Corp.

     784        11,337  

VSE Corp.

     300        8,439  

Waste Management, Inc.

     16,173        1,772,561  
    

 

 

  
     6,776,140  
Communications Equipment — 0.9%  

Acacia Communications, Inc.(a)

     1,414        96,124  

ADTRAN, Inc.

     1,464        18,183  

Applied Optoelectronics, Inc.(a)(b)

     492        6,991  

Arista Networks, Inc.(a)

     2,259        586,820  

Bel Fuse, Inc., Class B

     206        2,513  

CalAmp Corp.(a)

     1,415        11,150  

Calix, Inc.(a)

     2,212        45,368  

Casa Systems, Inc.(a)(b)

     501        2,811  

Ciena Corp.(a)

     5,881        349,978  

Cisco Systems, Inc.

     162,476        7,652,620  

Clearfield, Inc.(a)

     214        3,989  

CommScope Holding Co., Inc.(a)

     6,946        64,459  

Comtech Telecommunications Corp.

     769        12,627  

Digi International, Inc.(a)

     916        11,102  

EchoStar Corp., Class A(a)

     2,032        55,474  

Extreme Networks, Inc.(a)

     3,777        17,185  

F5 Networks, Inc.(a)

     2,330        316,647  

Harmonic, Inc.(a)

     3,609        20,138  

Infinera Corp.(a)

     7,530        59,412  

Inseego Corp.(a)(b)

     2,167        29,211  

InterDigital, Inc.

     1,091        65,482  

Juniper Networks, Inc.

     12,471        316,514  

KVH Industries, Inc.(a)

     368        2,988  

Loral Space & Communications, Inc.

     436        7,922  

Lumentum Holdings, Inc.(a)

     2,842        263,823  

Motorola Solutions, Inc.

     6,506        909,539  

NETGEAR, Inc.(a)

     984        30,258  

Plantronics, Inc.

     1,205        24,088  

Ribbon Communications, Inc.(a)

     1,319        5,804  

Ubiquiti, Inc.

     302        55,961  

ViaSat, Inc.(a)

     2,264        85,941  

Viavi Solutions, Inc.(a)

     8,882        122,838  
    

 

 

  
     11,253,960  
Construction & Engineering — 0.2%  

AECOM(a)

     5,920        214,245  

Aegion Corp.(a)

     966        14,896  

API Group Corp.(a)(c)

     5,527        76,991  

Arcosa, Inc.

     1,861        78,571  

Argan, Inc.

     484        20,764  

Comfort Systems USA, Inc.

     1,276        63,430  

Concrete Pumping Holdings, Inc.(a)(b)

     1,884        7,046  

Construction Partners, Inc., Class A(a)(b)

     670        11,088  

Dycom Industries, Inc.(a)

     1,030        44,115  

EMCOR Group, Inc.

     2,223        152,275  

Fluor Corp.

     4,956        50,502  

Granite Construction, Inc.

     1,707        28,951  

Great Lakes Dredge & Dock Corp.(a)

     2,420        20,231  

IES Holdings, Inc.(a)

     192        4,575  

Jacobs Engineering Group, Inc.

     4,756        405,924  

KBR, Inc.

     5,578        124,055  

MasTec, Inc.(a)(b)

     2,132        84,811  

MYR Group, Inc.(a)

     480        17,602  

Northwest Pipe Co.(a)

     487        12,102  

NV5 Global, Inc.(a)

     466        26,441  
Security   Shares      Value  
Construction & Engineering (continued)  

Primoris Services Corp.

     2,264      $ 36,292  

Quanta Services, Inc.

     5,402        215,918  

Sterling Construction Co., Inc.(a)

     736        7,581  

Tutor Perini Corp.(a)(b)

     1,983        23,340  

WillScot Mobile Mini Holdings Corp.(a)

     6,592        99,275  
    

 

 

  
     1,841,021  
Construction Materials — 0.1%  

Eagle Materials, Inc.

     1,639        131,497  

Forterra, Inc.(a)

     880        11,431  

Martin Marietta Materials, Inc.

     2,396        496,403  

Summit Materials, Inc., Class A(a)

     4,863        71,584  

United States Lime & Minerals, Inc.

     114        10,284  

US Concrete, Inc.(a)

     548        13,601  

Vulcan Materials Co.

     5,022        589,683  
    

 

 

  
     1,324,483  
Consumer Discretionary — 0.0%  

Acushnet Holdings Corp.

     1,308        49,769  

At Home Group, Inc.(a)

     2,006        24,915  

Camping World Holdings, Inc., Class A

     1,130        41,381  
    

 

 

  
     116,065  
Consumer Finance — 0.5%  

Ally Financial, Inc.

     14,574        292,937  

American Express Co.

     24,985        2,331,600  

Capital One Financial Corp.

     17,405        1,110,439  

Credit Acceptance Corp.(a)(b)

     397        185,772  

Curo Group Holdings Corp.

     395        2,761  

Discover Financial Services

     11,643        575,513  

Enova International, Inc.(a)

     1,442        23,202  

Ezcorp, Inc., Class A(a)

     1,575        9,009  

FirstCash, Inc.

     1,565        90,207  

Green Dot Corp., Class A(a)

     1,798        91,141  

I3 Verticals, Inc., Class A(a)

     417        10,083  

LendingClub Corp.(a)

     2,109        11,009  

Navient Corp.

     7,525        59,899  

Nelnet, Inc., Class A

     589        34,162  

OneMain Holdings, Inc.

     2,745        78,782  

Oportun Financial Corp.(a)

     866        12,384  

PRA Group, Inc.(a)

     1,868        73,898  

Regional Management Corp.(a)

     217        3,296  

Santander Consumer USA Holdings, Inc.(b)

     3,081        56,567  

SLM Corp.

     14,371        97,292  

Synchrony Financial

     22,326        494,074  

World Acceptance Corp.(a)

     213        15,826  
    

 

 

  
     5,659,853  
Containers & Packaging — 0.4%  

Amcor PLC(a)

     61,034        628,650  

AptarGroup, Inc.

     2,409        277,517  

Ardagh Group SA

     343        4,668  

Avery Dennison Corp.

     3,193        361,895  

Ball Corp.

     12,273        903,661  

Berry Global Group, Inc.(a)(b)

     5,046        252,250  

Crown Holdings, Inc.(a)

     4,936        353,319  

Graphic Packaging Holding Co.

     11,132        155,180  

Greif, Inc., Class A

     807        28,076  

Greif, Inc., Class B

     150        5,894  

International Paper Co.

     15,181        528,147  

Myers Industries, Inc.

     958        14,427  

O-I Glass, Inc.

     6,023        62,880  

Packaging Corp. of America

     3,593        345,359  

Ranpak Holdings Corp.(a)

     1,714        14,003  

Sealed Air Corp.

     6,109        217,969  

Silgan Holdings, Inc.

     2,921        111,728  

Sonoco Products Co.

     3,733        193,145  
 

 

 

52  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (continued)

July 31, 2020

   

iShares Total U.S. Stock Market Index Fund

(Percentages shown are based on Net Assets)

 

Security   Shares      Value  
Containers & Packaging (continued)  

UFP Technologies, Inc.(a)

     191      $ 8,240  

Westrock Co.

     9,767        262,342  
    

 

 

  
     4,729,350  
Distributors — 0.1%  

Core-Mark Holding Co., Inc.

     1,551        41,133  

Funko, Inc., Class A(a)

     475        2,632  

Genuine Parts Co.

     5,430        489,514  

LKQ Corp.(a)

     11,949        336,842  

Pool Corp.

     1,490        471,883  

Weyco Group, Inc.

     221        4,071  
    

 

 

  
     1,346,075  
Diversified Consumer Services — 0.2%  

2U, Inc.(a)

     2,424        114,158  

Adtalem Global Education, Inc.(a)

     1,841        63,220  

American Public Education, Inc.(a)

     510        14,846  

Bright Horizons Family Solutions, Inc.(a)

     2,193        235,177  

Carriage Services, Inc.

     750        16,583  

Chegg, Inc.(a)

     4,694        380,073  

Collectors Universe, Inc.

     378        14,387  

Franchise Group, Inc.

     829        20,311  

frontdoor, Inc.(a)

     3,303        138,709  

Graham Holdings Co., Class B

     162        64,536  

Grand Canyon Education, Inc.(a)

     1,833        162,660  

H&R Block, Inc.

     7,298        105,821  

Houghton Mifflin Harcourt Co.(a)

     3,459        10,239  

K12, Inc.(a)

     1,743        79,812  

Laureate Education, Inc., Class A(a)

     4,568        57,922  

Matthews International Corp., Class A

     1,044        22,550  

OneSpaWorld Holdings Ltd.

     1,738        9,663  

Regis Corp.(a)

     1,081        8,302  

Service Corp. International

     6,616        286,870  

ServiceMaster Global Holdings, Inc.(a)

     4,949        202,365  

Strategic Education, Inc.

     860        108,541  

Universal Technical Institute, Inc.(a)

     1,638        12,170  

Vivint Smart Home, Inc.(a)

     2,705        41,522  

WW International, Inc.(a)(b)

     1,673        43,130  
    

 

 

  
     2,213,567  
Diversified Financial Services — 1.3%  

Alerus Financial Corp.

     1,174        22,752  

Berkshire Hathaway, Inc., Class B(a)

     74,431        14,572,101  

Cannae Holdings, Inc.(a)

     3,232        121,782  

Equitable Holdings, Inc.

     15,985        327,053  

FactSet Research Systems, Inc.

     1,422        492,439  

Interactive Brokers Group, Inc., Class A

     2,719        134,862  

Jefferies Financial Group, Inc.

     8,636        139,903  

Marlin Business Services Corp.

     218        1,600  

Morgan Group Holding Co.(a)

     2        23  

Morningstar, Inc.

     843        141,658  

PICO Holdings, Inc.(a)

     421        3,419  

Voya Financial, Inc.

     5,083        251,100  
    

 

 

  
     16,208,692  
Diversified Telecommunication Services — 1.5%  

8x8, Inc.(a)

     4,262        67,766  

Anterix, Inc.(a)

     518        22,574  

AT&T, Inc.

     273,392        8,086,935  

ATN International, Inc.

     370        21,323  

Bandwidth, Inc., Class A(a)(b)

     741        107,282  

CenturyLink, Inc.

     41,859        403,939  

Cincinnati Bell, Inc.(a)

     1,146        17,202  

Cogent Communications Holdings, Inc.

     1,645        148,231  

Consolidated Communications Holdings, Inc.(a)

     2,166        15,812  

IDT Corp., Class B(a)

     1,396        9,088  

Iridium Communications, Inc.(a)

     4,596        125,885  
Security   Shares      Value  
Diversified Telecommunication Services (continued)  

Ooma, Inc.(a)

     719      $ 10,886  

ORBCOMM, Inc.(a)

     2,610        10,988  

Verizon Communications, Inc.

     158,534        9,112,534  

Vonage Holdings Corp.(a)

     9,280        110,896  
    

 

 

  
     18,271,341  
Education Services — 0.0%  

Perdoceo Education Corp.(a)

     2,686        38,678  
    

 

 

  
Electric Utilities — 1.7%  

ALLETE, Inc.

     2,198        130,341  

Alliant Energy Corp.

     9,381        505,167  

American Electric Power Co., Inc.

     18,960        1,647,245  

Avangrid, Inc.

     2,257        112,376  

Duke Energy Corp.

     28,015        2,373,991  

Edison International

     13,644        759,562  

Entergy Corp.

     7,726        812,234  

Evergy, Inc.

     8,477        549,564  

Eversource Energy

     12,770        1,150,194  

Exelon Corp.

     37,057        1,430,771  

FirstEnergy Corp.

     20,679        599,691  

Hawaiian Electric Industries, Inc.

     4,179        151,531  

IDACORP, Inc.

     1,947        181,558  

MGE Energy, Inc.

     1,319        87,489  

NextEra Energy, Inc.

     18,689        5,246,002  

OGE Energy Corp.

     7,692        253,067  

Otter Tail Corp.

     1,625        62,156  

PG&E Corp.(a)(b)

     36,449        340,798  

Pinnacle West Capital Corp.

     4,306        357,742  

PNM Resources, Inc.

     2,950        124,579  

Portland General Electric Co.

     3,472        153,219  

PPL Corp.

     29,281        779,460  

Southern Co.

     40,174        2,193,902  

Spark Energy, Inc., Class A

     516        3,896  

Unitil Corp.

     767        33,096  

Xcel Energy, Inc.

     19,993        1,380,317  
    

 

 

  
     21,419,948  
Electrical Equipment — 0.6%  

Acuity Brands, Inc.

     1,593        157,866  

Allied Motion Technologies, Inc.

     178        6,711  

American Superconductor Corp.(a)(b)

     1,101        10,239  

AMETEK, Inc.

     8,598        801,763  

Atkore International Group, Inc.(a)

     1,571        41,899  

AZZ, Inc.

     902        28,485  

Bloom Energy Corp., Class A(a)

     3,813        46,366  

Brady Corp., Class A

     2,081        95,664  

Eaton Corp. PLC

     15,258        1,420,977  

Emerson Electric Co.

     22,793        1,413,394  

Encore Wire Corp.

     957        48,032  

EnerSys

     1,812        121,875  

Franklin Electric Co., Inc.

     1,806        97,614  

FuelCell Energy, Inc.(a)

     9,494        21,172  

Generac Holdings, Inc.(a)

     2,297        361,961  

GrafTech International Ltd.

     2,430        14,750  

Hubbell, Inc.

     2,012        271,560  

nVent Electric PLC

     6,524        118,476  

Plug Power, Inc.(a)(b)

     12,304        94,864  

Powell Industries, Inc.

     401        10,646  

Preformed Line Products Co.

     83        4,089  

Regal-Beloit Corp.

     1,599        147,060  

Rockwell Automation, Inc.

     4,407        961,343  

Sensata Technologies Holding PLC(a)

     6,109        232,020  

Sunrun, Inc.(a)

     4,528        166,132  

Thermon Group Holdings, Inc.(a)

     911        12,344  

TPI Composites, Inc.(a)

     945        24,173  
 

 

 

SCHEDULES OF INVESTMENTS

   53

Schedule of Investments  (continued)

July 31, 2020

   

iShares Total U.S. Stock Market Index Fund

(Percentages shown are based on Net Assets)

 

Security   Shares      Value  
Electrical Equipment (continued)  

Vertiv Holdings Co.(a)

     7,556      $ 109,562  

Vicor Corp.(a)(b)

     678        55,237  
    

 

 

  
     6,896,274  
Electronic Equipment, Instruments & Components — 0.7%  

Agilysys, Inc.(a)

     963        20,184  

Akoustis Technologies, Inc.(a)

     1,380        10,957  

Amphenol Corp., Class A

     11,007        1,164,100  

Arlo Technologies, Inc.(a)

     1,948        8,221  

Arrow Electronics, Inc.(a)

     3,059        219,086  

Avnet, Inc.

     3,640        97,261  

Badger Meter, Inc.

     1,205        75,433  

Belden, Inc.

     1,568        49,549  

Benchmark Electronics, Inc.

     1,484        30,214  

CDW Corp.

     5,437        632,051  

Cognex Corp.

     6,270        419,275  

Coherent, Inc.(a)

     981        136,192  

Corning, Inc.

     28,618        887,158  

CTS Corp.

     939        18,649  

Daktronics, Inc.

     624        2,602  

Dolby Laboratories, Inc., Class A

     2,459        171,146  

ePlus, Inc.(a)

     424        31,605  

Fabrinet(a)

     1,353        98,268  

FARO Technologies, Inc.(a)

     560        33,505  

Fitbit, Inc., Series A(a)(b)

     8,732        57,107  

FLIR Systems, Inc.

     4,941        205,842  

II-VI, Inc.(a)(b)

     3,566        180,868  

Insight Enterprises, Inc.(a)

     1,302        64,892  

IntriCon Corp.(a)

     198        2,138  

IPG Photonics Corp.(a)

     1,330        238,083  

Itron, Inc.(a)

     1,578        109,766  

Jabil, Inc.

     5,800        202,188  

Keysight Technologies, Inc.(a)

     7,145        713,714  

Kimball Electronics, Inc.(a)

     871        11,567  

Knowles Corp.(a)

     3,056        46,635  

Littelfuse, Inc.

     869        154,378  

Mesa Laboratories, Inc.

     146        34,593  

Methode Electronics, Inc.

     1,799        50,732  

MTS Systems Corp.

     724        13,430  

Napco Security Technologies, Inc.(a)

     234        6,173  

National Instruments Corp.

     4,974        176,577  

nLight, Inc.(a)

     1,181        27,364  

Novanta, Inc.(a)

     1,334        138,309  

OSI Systems, Inc.(a)

     626        44,421  

PAR Technology Corp.(a)

     598        18,394  

PC Connection, Inc.(b)

     479        20,932  

Plexus Corp.(a)

     1,011        75,107  

Rogers Corp.(a)

     674        80,334  

Sanmina Corp.(a)

     2,476        73,488  

ScanSource, Inc.(a)

     754        17,304  

SYNNEX Corp.

     1,635        203,950  

Trimble, Inc.(a)

     9,640        429,076  

TTM Technologies, Inc.(a)

     3,796        46,729  

Universal Display Corp.

     1,637        285,575  

Vishay Intertechnology, Inc.

     4,898        76,850  

Vishay Precision Group, Inc.(a)

     235        5,981  

Zebra Technologies Corp., Class A(a)

     1,999        561,219  
    

 

 

  
     8,479,172  
Energy Equipment & Services — 0.2%  

Archrock, Inc.

     3,980        26,507  

Baker Hughes Co.

     24,762        383,563  

Bristow Group, Inc.(a)

     204        3,266  

Cactus, Inc., Class A

     1,806        40,852  

ChampionX Corp.(a)

     7,499        71,315  

Dril-Quip, Inc.(a)(b)

     1,277        42,511  
Security   Shares      Value  
Energy Equipment & Services (continued)  

Exterran Corp.(a)

     1,098      $ 5,457  

Frank’s International NV(a)

     4,988        11,373  

Halliburton Co.

     33,153        475,083  

Helix Energy Solutions Group, Inc.(a)

     4,203        17,611  

Helmerich & Payne, Inc.

     3,840        68,467  

Liberty Oilfield Services, Inc., Class A

     1,908        10,780  

Matrix Service Co.(a)

     1,242        10,874  

Nabors Industries Ltd.(b)

     217        9,203  

National Energy Services Reunited Corp.(a)

     1,333        8,918  

National Oilwell Varco, Inc.

     15,113        173,951  

Newpark Resources, Inc.(a)

     2,639        4,988  

NexTier Oilfield Solutions Inc.(a)(b)

     5,168        13,023  

Oceaneering International, Inc.(a)

     3,336        18,748  

Oil States International, Inc.(a)

     1,913        8,570  

Patterson-UTI Energy, Inc.

     6,690        25,924  

ProPetro Holding Corp.(a)

     2,681        14,397  

RPC, Inc.(a)

     2,009        5,967  

Schlumberger Ltd.

     53,689        973,918  

SEACOR Holdings, Inc.(a)

     540        15,703  

Select Energy Services, Inc., Class A(a)

     1,380        6,127  

Solaris Oilfield Infrastructure, Inc., Class A

     756        5,489  

Tidewater, Inc.(a)

     1,293        8,042  

Transocean Ltd.(a)(b)

     21,175        43,197  
    

 

 

  
     2,503,824  
Entertainment — 1.8%  

Activision Blizzard, Inc.

     29,192        2,412,135  

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

     2,291        9,256  

Cinemark Holdings, Inc.

     3,733        44,161  

Electronic Arts, Inc.(a)

     10,875        1,540,117  

Glu Mobile, Inc.(a)

     5,088        48,031  

Madison Square Garden Entertainment Corp.(a)

     663        46,980  

Netflix, Inc.(a)

     16,277        7,957,500  

Roku, Inc.(a)

     3,886        601,903  

Spotify Technology SA(a)

     5,003        1,289,873  

Take-Two Interactive Software, Inc.(a)

     4,286        702,990  

Walt Disney Co.

     69,113        8,082,074  

World Wrestling Entertainment, Inc., Class A

     1,839        85,716  
    

 

 

  
     22,820,736  
Equity Real Estate Investment Trusts (REITs) — 3.4%  

Acadia Realty Trust

     2,748        33,086  

Agree Realty Corp.

     1,993        133,471  

Alexander’s, Inc.

     94        23,668  

Alexandria Real Estate Equities, Inc.

     4,760        845,138  

American Assets Trust, Inc.

     1,829        49,383  

American Campus Communities, Inc.

     5,166        184,116  

American Finance Trust, Inc.

     4,079        29,797  

American Homes 4 Rent, Class A

     9,878        286,462  

American Tower Corp.

     16,861        4,407,297  

Americold Realty Trust

     7,633        307,992  

Anworth Mortgage Asset Corp.

     2,687        4,863  

Apartment Investment & Management Co., Class A

     5,530        214,675  

Apollo Commercial Real Estate Finance, Inc.

     7,093        65,965  

Apple Hospitality REIT, Inc.

     7,957        70,181  

Arbor Realty Trust, Inc.

     4,147        42,258  

Ares Commercial Real Estate Corp.

     1,122        10,244  

Armada Hoffler Properties, Inc.

     3,028        29,190  

ARMOUR Residential REIT, Inc.

     1,713        15,999  

AvalonBay Communities, Inc.

     5,416        829,298  

Bluerock Residential Growth REIT, Inc.

     1,804        13,061  

Boston Properties, Inc.

     5,939        529,105  

Brandywine Realty Trust

     6,024        65,240  

Brixmor Property Group, Inc.

     11,572        133,194  

Brookfield Property REIT, Inc., Class A

     2,512        29,164  

Camden Property Trust

     3,535        321,013  
 

 

 

54  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (continued)

July 31, 2020

   

iShares Total U.S. Stock Market Index Fund

(Percentages shown are based on Net Assets)

 

Security   Shares      Value  
Equity Real Estate Investment Trusts (REITs) (continued)  

Capstead Mortgage Corp.

     2,469      $ 15,184  

Catchmark Timber Trust, Inc., Class A

     1,412        13,781  

Chatham Lodging Trust

     2,016        10,503  

Cherry Hill Mortgage Investment Corp.

     1,244        11,482  

City Office REIT, Inc.

     1,953        16,893  

Clipper Realty, Inc.

     393        2,625  

Colony Capital, Inc.

     17,406        33,420  

Columbia Property Trust, Inc.

     4,769        57,037  

Community Healthcare Trust, Inc.

     938        42,895  

CoreCivic, Inc.

     4,168        37,137  

CorEnergy Infrastructure Trust, Inc.

     520        4,555  

CorePoint Lodging, Inc.

     1,425        7,966  

CoreSite Realty Corp.

     1,557        200,931  

Corporate Office Properties Trust

     4,042        107,032  

Cousins Properties, Inc.

     5,647        173,476  

Crown Castle International Corp.

     15,868        2,645,196  

CubeSmart

     7,453        221,131  

CyrusOne, Inc.

     4,405        367,465  

DiamondRock Hospitality Co.

     8,483        39,191  

Digital Realty Trust, Inc.(b)

     10,203        1,637,990  

Diversified Healthcare Trust

     8,842        34,440  

Douglas Emmett, Inc.

     6,492        189,177  

Duke Realty Corp.

     13,961        561,093  

Easterly Government Properties, Inc.

     3,168        77,458  

EastGroup Properties, Inc.

     1,445        191,694  

Empire State Realty Trust, Inc., Class A

     5,879        38,801  

EPR Properties

     3,063        87,694  

Equinix, Inc.

     3,359        2,638,427  

Equity Commonwealth

     4,506        142,254  

Equity LifeStyle Properties, Inc.

     6,669        455,626  

Equity Residential

     13,918        746,422  

Essex Property Trust, Inc.

     2,477        546,773  

Extra Space Storage, Inc.

     4,776        493,552  

Farmland Partners, Inc.

     2,041        14,103  

Federal Realty Investment Trust

     2,926        223,254  

First Industrial Realty Trust, Inc.

     4,764        209,235  

Four Corners Property Trust, Inc.

     3,033        76,432  

Franklin Street Properties Corp.

     2,880        15,120  

Gaming and Leisure Properties, Inc.

     7,826        283,379  

Geo Group, Inc.

     4,668        49,621  

Getty Realty Corp.

     1,530        45,334  

Gladstone Commercial Corp.

     2,038        37,092  

Gladstone Land Corp.

     1,361        21,885  

Global Net Lease, Inc.

     3,473        57,825  

Healthcare Realty Trust, Inc.

     4,888        143,218  

Healthcare Trust of America, Inc., Class A

     8,288        228,832  

Healthpeak Properties, Inc.

     20,637        563,184  

Hersha Hospitality Trust

     1,059        5,041  

Highwoods Properties, Inc.

     4,145        158,919  

Host Hotels & Resorts, Inc.

     27,226        293,496  

Hudson Pacific Properties, Inc.

     5,910        139,299  

Independence Realty Trust, Inc.

     4,199        48,288  

Industrial Logistics Properties Trust

     2,854        60,248  

Innovative Industrial Properties, Inc.

     619        64,518  

Investors Real Estate Trust

     578        41,789  

Invitation Homes, Inc.

     20,747        618,676  

Iron Mountain, Inc.

     10,879        306,679  

iStar, Inc.

     3,168        36,780  

JBG SMITH Properties

     4,499        130,516  

Jernigan Capital, Inc.

     475        6,655  

Kilroy Realty Corp.

     4,406        256,738  

Kimco Realty Corp.

     16,343        182,224  

Kite Realty Group Trust

     3,058        30,182  

Lamar Advertising Co., Class A

     3,235        212,637  

Lexington Realty Trust

     9,118        105,769  
Security   Shares      Value  
Equity Real Estate Investment Trusts (REITs) (continued)  

Life Storage, Inc.

     1,771      $ 173,788  

LTC Properties, Inc.

     1,396        51,861  

Macerich Co.(b)

     5,293        40,386  

Mack-Cali Realty Corp.

     3,138        45,250  

Medical Properties Trust, Inc.

     19,482        392,173  

MFA Financial, Inc.

     15,427        40,573  

Mid-America Apartment Communities, Inc.

     4,296        512,040  

Monmouth Real Estate Investment Corp.

     5,007        72,251  

National Health Investors, Inc.

     1,689        104,718  

National Retail Properties, Inc.

     6,508        230,709  

National Storage Affiliates Trust

     2,746        84,632  

New Residential Investment Corp.

     15,174        120,330  

New Senior Investment Group, Inc.

     3,694        12,560  

New York Mortgage Trust, Inc.

     12,533        32,836  

NexPoint Residential Trust, Inc.

     688        26,302  

Office Properties Income Trust

     1,678        42,202  

Omega Healthcare Investors, Inc.

     8,624        279,245  

One Liberty Properties, Inc.

     648        10,997  

Orchid Island Capital, Inc.

     1,593        8,188  

Outfront Media, Inc.

     5,156        74,298  

Paramount Group, Inc.

     8,065        57,503  

Park Hotels & Resorts, Inc.

     9,495        78,524  

Pebblebrook Hotel Trust

     4,854        51,452  

PennyMac Mortgage Investment Trust(g)

     3,140        59,189  

Physicians Realty Trust

     7,801        140,730  

Piedmont Office Realty Trust, Inc., Class A

     4,983        80,774  

Plymouth Industrial REIT, Inc.

     907        12,036  

PotlatchDeltic Corp.

     2,509        107,410  

Preferred Apartment Communities, Inc., Class A

     2,312        16,716  

Prologis, Inc.

     28,131        2,965,570  

PS Business Parks, Inc.

     756        104,290  

Public Storage

     5,756        1,150,509  

QTS Realty Trust, Inc., Class A(b)

     2,190        157,570  

Rayonier, Inc.

     5,302        147,290  

Realty Income Corp.

     13,168        790,738  

Redwood Trust, Inc.

     4,274        30,474  

Regency Centers Corp.

     6,368        261,279  

Retail Opportunity Investments Corp.

     4,102        44,589  

Retail Properties of America, Inc., Class A

     10,116        64,338  

Retail Value, Inc.

     523        6,621  

Rexford Industrial Realty, Inc.

     4,410        206,961  

RLJ Lodging Trust

     6,669        53,419  

RPT Realty

     2,246        13,970  

Ryman Hospitality Properties, Inc.

     2,038        65,257  

Sabra Health Care REIT, Inc.

     7,898        116,417  

Safehold, Inc.

     646        32,578  

Saul Centers, Inc.

     314        9,643  

SBA Communications Corp.

     4,213        1,312,518  

Seritage Growth Properties, Class A(a)

     1,080        10,055  

Service Properties Trust

     5,835        39,094  

Simon Property Group, Inc.

     11,593        722,824  

SITE Centers Corp.

     6,683        48,986  

SL Green Realty Corp.

     2,895        134,617  

Spirit Realty Capital, Inc.

     4,006        138,047  

STAG Industrial, Inc.

     5,667        184,744  

Starwood Property Trust, Inc.

     10,035        150,023  

STORE Capital Corp.

     8,363        198,119  

Summit Hotel Properties, Inc.

     3,295        17,068  

Sun Communities, Inc.

     3,676        551,143  

Sunstone Hotel Investors, Inc.

     8,522        63,745  

Tanger Factory Outlet Centers, Inc.(b)

     2,740        17,618  

Taubman Centers, Inc.

     2,348        90,915  

Terreno Realty Corp.

     2,449        148,801  

UDR, Inc.

     11,140        403,268  

UMH Properties, Inc.

     1,449        17,823  
 

 

 

SCHEDULES OF INVESTMENTS

   55

Schedule of Investments  (continued)

July 31, 2020

   

iShares Total U.S. Stock Market Index Fund

(Percentages shown are based on Net Assets)

 

Security   Shares      Value  
Equity Real Estate Investment Trusts (REITs) (continued)  

Uniti Group, Inc.

     7,354      $ 72,805  

Universal Health Realty Income Trust

     517        35,973  

Urban Edge Properties

     4,108        43,052  

Urstadt Biddle Properties, Inc., Class A

     607        5,955  

Ventas, Inc.

     14,234        546,016  

VEREIT, Inc.

     41,244        268,498  

VICI Properties, Inc.

     18,068        392,256  

Vornado Realty Trust

     6,652        229,627  

Washington Real Estate Investment Trust

     3,405        76,136  

Weingarten Realty Investors

     4,432        75,610  

Welltower, Inc.

     16,010        857,496  

Weyerhaeuser Co.

     28,309        787,273  

Whitestone REIT

     1,160        7,656  

WP Carey, Inc.

     6,441        459,694  

Xenia Hotels & Resorts, Inc.

     4,549        36,210  
    

 

 

  
     42,514,980  
Food & Staples Retailing — 1.4%  

Andersons, Inc.

     977        13,893  

BJ’s Wholesale Club Holdings, Inc.(a)

     5,204        208,420  

Casey’s General Stores, Inc.

     1,422        226,368  

Chefs’ Warehouse, Inc.(a)

     1,138        13,121  

Costco Wholesale Corp.

     16,880        5,494,946  

Grocery Outlet Holding Corp.(a)(b)

     2,678        117,805  

HF Foods Group, Inc.(a)

     1,854        16,427  

Ingles Markets, Inc., Class A

     575        23,144  

Kroger Co.

     29,705        1,033,437  

Natural Grocers by Vitamin Cottage, Inc.

     357        5,651  

Performance Food Group Co.(a)(b)

     4,917        137,774  

PriceSmart, Inc.

     847        55,368  

Rite Aid Corp.(a)

     2,190        33,200  

SpartanNash Co.

     1,099        23,107  

Sprouts Farmers Market, Inc.(a)

     4,686        123,617  

Sysco Corp.

     18,554        980,579  

U.S. Foods Holding Corp.(a)

     8,142        165,283  

United Natural Foods, Inc.(a)

     2,235        44,365  

Village Super Market, Inc., Class A

     168        4,242  

Walgreens Boots Alliance, Inc.

     28,166        1,146,638  

Walmart, Inc.

     53,335        6,901,549  

Weis Markets, Inc.

     304        15,145  
    

 

 

  
     16,784,079  
Food Products — 1.1%  

Archer-Daniels-Midland Co.

     21,390        916,134  

B&G Foods, Inc.

     2,207        63,804  

Beyond Meat, Inc.(a)

     1,968        247,771  

Bunge Ltd.

     5,211        226,366  

Cal-Maine Foods, Inc.(a)

     1,156        50,801  

Calavo Growers, Inc.(b)

     718        41,479  

Campbell Soup Co.

     6,746        334,399  

Conagra Brands, Inc.

     18,696        700,165  

Darling Ingredients, Inc.(a)

     6,433        179,674  

Farmer Bros Co.(a)

     293        1,459  

Flowers Foods, Inc.

     7,215        164,141  

Fresh Del Monte Produce, Inc.

     1,399        31,590  

Freshpet, Inc.(a)

     1,484        142,538  

General Mills, Inc.

     23,212        1,468,623  

Hain Celestial Group, Inc.(a)(b)

     2,981        101,294  

Hershey Co.

     5,643        820,549  

Hormel Foods Corp.

     10,636        540,947  

Hostess Brands, Inc.(a)

     4,267        54,106  

Ingredion, Inc.

     2,623        226,890  

J&J Snack Foods Corp.

     529        65,136  

J.M. Smucker Co.

     4,192        458,395  

John B Sanfilippo & Son, Inc.

     296        26,098  

Kellogg Co.

     9,572        660,372  
Security   Shares      Value  
Food Products (continued)  

Kraft Heinz Co.

     24,784      $ 852,074  

Lamb Weston Holdings, Inc.

     5,590        335,847  

Lancaster Colony Corp.

     735        116,564  

Limoneira Co.

     296        3,990  

McCormick & Co., Inc.

     4,746        924,995  

Mondelez International, Inc., Class A

     54,194        3,007,225  

Pilgrim’s Pride Corp.(a)

     2,023        31,053  

Post Holdings, Inc.(a)

     2,565        227,618  

Sanderson Farms, Inc.

     727        81,057  

Seneca Foods Corp., Class A(a)

     168        6,582  

Simply Good Foods Co.(a)

     2,958        71,110  

Tootsie Roll Industries, Inc.

     886        28,086  

TreeHouse Foods, Inc.(a)

     2,206        96,667  

Tyson Foods, Inc., Class A

     11,044        678,654  
    

 

 

  
     13,984,253  
Gas Utilities — 0.1%  

Atmos Energy Corp.

     4,610        488,614  

Brookfield Infrastructure Corp., Class A

     1,429        65,220  

Chesapeake Utilities Corp.

     684        57,791  

National Fuel Gas Co.

     3,123        126,700  

New Jersey Resources Corp.

     3,812        118,401  

Northwest Natural Holding Co.

     1,112        59,481  

ONE Gas, Inc.

     2,003        151,627  

RGC Resources, Inc.

     723        16,774  

South Jersey Industries, Inc.

     3,650        85,154  

Southwest Gas Holdings, Inc.

     2,085        145,199  

Spire, Inc.

     1,912        117,894  

UGI Corp.

     8,084        269,520  
    

 

 

  
     1,702,375  
Health Care Equipment & Supplies — 3.7%  

Abbott Laboratories

     66,149        6,657,235  

ABIOMED, Inc.(a)

     1,698        509,298  

Accuray, Inc.(a)

     2,245        5,006  

Align Technology, Inc.(a)

     2,976        874,408  

Alphatec Holdings, Inc.(a)

     1,750        8,697  

AngioDynamics, Inc.(a)

     1,227        10,135  

Anika Therapeutics, Inc.(a)

     494        17,982  

Antares Pharma, Inc.(a)(b)

     4,962        12,951  

Apyx Medical Corp.(a)

     1,544        6,933  

Aspira Women’s Health, Inc.(a)(b)

     2,554        11,416  

AtriCure, Inc.(a)

     1,590        64,888  

Atrion Corp.

     52        32,245  

Avanos Medical, Inc.(a)

     1,913        58,672  

Axogen, Inc.(a)

     1,488        16,919  

Axonics Modulation Technologies, Inc.(a)(b)

     1,240        52,526  

Baxter International, Inc.

     19,470        1,681,819  

Becton Dickinson & Co.

     10,326        2,905,117  

BioLife Solutions, Inc.(a)(b)

     685        13,241  

BioSig Technologies, Inc.(a)

     1,755        15,830  

Boston Scientific Corp.(a)

     53,499        2,063,456  

Cantel Medical Corp.

     1,540        72,765  

Cardiovascular Systems, Inc.(a)

     1,273        38,801  

Cerus Corp.(a)

     6,213        44,299  

Co-Diagnostics, Inc.(a)(b)

     1,182        28,368  

CONMED Corp.

     990        81,715  

Cooper Cos., Inc.

     1,873        529,928  

CryoLife, Inc.(a)

     1,534        29,775  

CryoPort, Inc.(a)(b)

     1,340        44,408  

Cutera, Inc.(a)

     449        6,389  

CytoSorbents Corp.(a)

     805        7,708  

Danaher Corp.

     23,899        4,870,616  

DENTSPLY SIRONA, Inc.(b)

     8,427        375,844  

DexCom, Inc.(a)

     3,515        1,530,923  

Edwards Lifesciences Corp.(a)

     23,712        1,859,258  
 

 

 

56  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (continued)

July 31, 2020

   

iShares Total U.S. Stock Market Index Fund

(Percentages shown are based on Net Assets)

 

Security   Shares      Value  
Health Care Equipment & Supplies (continued)  

Envista Holdings Corp.(a)

     6,140      $ 134,282  

GenMark Diagnostics, Inc.(a)

     2,916        52,080  

Glaukos Corp.(a)

     1,757        76,781  

Globus Medical, Inc., Class A(a)

     2,933        141,312  

Haemonetics Corp.(a)

     1,933        169,447  

Hill-Rom Holdings, Inc.

     2,539        246,842  

Hologic, Inc.(a)

     9,810        684,542  

ICU Medical, Inc.(a)

     735        135,042  

IDEXX Laboratories, Inc.(a)

     3,226        1,283,141  

Inogen, Inc.(a)

     590        18,113  

Insulet Corp.(a)

     2,406        489,284  

Integra LifeSciences Holdings Corp.(a)

     2,821        134,703  

Intuitive Surgical, Inc.(a)

     4,427        3,034,443  

Invacare Corp.

     859        6,047  

iRhythm Technologies, Inc.(a)

     1,011        125,849  

Lantheus Holdings, Inc.(a)

     1,418        19,115  

LeMaitre Vascular, Inc.

     408        11,967  

LivaNova PLC(a)(b)

     1,753        81,585  

Masimo Corp.(a)

     1,848        406,782  

Medtronic PLC

     51,391        4,958,204  

Meridian Bioscience, Inc.(a)

     1,421        34,800  

Merit Medical Systems, Inc.(a)

     1,975        88,322  

Natus Medical, Inc.(a)

     1,203        22,352  

Neogen Corp.(a)

     2,052        157,532  

Nevro Corp.(a)

     1,284        170,721  

Novocure Ltd.(a)

     3,817        289,290  

NuVasive, Inc.(a)

     1,884        107,652  

Ocular Therapeutix, Inc.(a)

     1,510        11,838  

OraSure Technologies, Inc.(a)

     2,564        46,537  

Orthofix Medical, Inc.(a)

     536        16,461  

OrthoPediatrics Corp.(a)(b)

     331        13,965  

Penumbra, Inc.(a)(b)

     1,195        265,182  

Pulse Biosciences, Inc.(a)(b)

     649        6,652  

Quidel Corp.(a)

     1,420        401,107  

Quotient Ltd.(a)(b)

     2,710        21,246  

Repro-Med Systems, Inc.(a)(b)

     1,311        13,674  

ResMed, Inc.

     5,476        1,108,945  

Rockwell Medical, Inc.(a)

     732        1,259  

SeaSpine Holdings Corp.(a)

     1,292        12,106  

Shockwave Medical, Inc.(a)

     939        46,311  

SI-BONE, Inc.(a)

     753        12,876  

Sientra, Inc.(a)

     705        2,679  

Silk Road Medical, Inc.(a)

     1,345        62,489  

STAAR Surgical Co.(a)(b)

     1,870        108,815  

Stereotaxis, Inc.(a)

     2,252        8,670  

STERIS PLC

     3,187        508,741  

Stryker Corp.

     13,264        2,563,931  

Surgalign Holdings, Inc.(a)

     1,373        3,858  

Surmodics, Inc.(a)

     407        19,247  

Tactile Systems Technology, Inc.(a)

     698        28,604  

Tandem Diabetes Care, Inc.(a)

     2,292        239,422  

Teleflex, Inc.

     1,788        667,103  

TransMedics Group, Inc.(a)

     636        11,486  

Utah Medical Products, Inc.

     90        7,335  

Vapotherm, Inc.(a)

     796        41,583  

Varex Imaging Corp.(a)(b)

     1,195        18,738  

Varian Medical Systems, Inc.(a)

     3,509        500,804  

ViewRay, Inc.(a)(b)

     1,473        4,080  

West Pharmaceutical Services, Inc.

     2,795        751,492  

Wright Medical Group NV(a)(b)

     4,851        145,627  

Zimmer Biomet Holdings, Inc.

     7,935        1,070,114  

Zynex, Inc.(a)(b)

     746        14,263  
    

 

 

  
     46,377,041  
Health Care Providers & Services — 2.6%  

1Life Healthcare, Inc.(a)

     845        25,020  
Security   Shares      Value  
Health Care Providers & Services (continued)  

Acadia Healthcare Co., Inc.(a)

     3,502      $ 104,395  

Addus HomeCare Corp.(a)

     598        57,653  

Amedisys, Inc.(a)

     1,185        277,480  

American Renal Associates Holdings, Inc.(a)

     551        3,554  

AmerisourceBergen Corp.

     5,556        556,656  

AMN Healthcare Services, Inc.(a)

     1,836        100,870  

Anthem, Inc.

     9,669        2,647,372  

Apollo Medical Holdings, Inc.(a)

     171        2,864  

BioTelemetry, Inc.(a)

     1,463        62,265  

Brookdale Senior Living, Inc.(a)

     5,904        16,354  

Cardinal Health, Inc.

     11,259        614,967  

Centene Corp.(a)

     22,016        1,436,544  

Chemed Corp.

     591        290,884  

Cigna Corp.(a)

     13,846        2,391,066  

Community Health Systems, Inc.(a)

     2,135        10,632  

CorVel Corp.(a)

     279        22,178  

Covetrus, Inc.(a)

     3,537        78,380  

Cross Country Healthcare, Inc.(a)

     730        4,734  

CVS Health Corp.

     49,959        3,144,419  

DaVita, Inc.(a)

     3,181        277,988  

Encompass Health Corp.

     3,618        246,313  

Ensign Group, Inc.

     1,929        88,715  

Fulgent Genetics, Inc.(a)

     673        17,734  

Guardant Health, Inc.(a)

     2,862        243,785  

Hanger, Inc.(a)

     1,491        26,033  

HCA Healthcare, Inc.

     10,272        1,300,846  

HealthEquity, Inc.(a)

     2,659        137,098  

Henry Schein, Inc.(a)(b)

     5,470        375,953  

Humana, Inc.

     5,061        1,986,189  

InfuSystem Holdings, Inc.(a)

     955        11,661  

Integer Holdings Corp.(a)

     1,219        80,174  

Joint Corp.(a)

     581        8,390  

Laboratory Corp. of America Holdings(a)

     3,678        709,560  

LHC Group, Inc.(a)

     1,177        229,644  

Magellan Health, Inc.(a)

     1,029        76,321  

McKesson Corp.

     6,197        930,542  

MEDNAX, Inc.(a)

     2,875        57,443  

Molina Healthcare, Inc.(a)

     2,236        412,989  

National HealthCare Corp.

     696        41,287  

National Research Corp.

     477        27,280  

Ontrak, Inc.(a)(b)

     667        25,519  

Option Care Health, Inc.(a)

     935        11,014  

Owens & Minor, Inc.

     3,579        57,550  

Patterson Cos., Inc.

     3,237        85,975  

Pennant Group Inc.(a)

     813        20,374  

PetIQ, Inc.(a)

     874        31,892  

Premier, Inc., Class A(a)

     2,254        78,822  

Progyny, Inc.(a)

     1,169        31,125  

Providence Service Corp.(a)

     534        43,259  

Quest Diagnostics, Inc.

     5,040        640,433  

R1 RCM, Inc.(a)

     3,484        47,626  

RadNet, Inc.(a)

     1,424        22,627  

Select Medical Holdings Corp.(a)

     4,151        79,035  

Surgery Partners, Inc.(a)(b)

     732        11,178  

Tenet Healthcare Corp.(a)

     3,666        96,929  

Tivity Health, Inc.(a)

     1,912        25,085  

Triple-S Management Corp., Class B(a)

     753        14,653  

U.S. Physical Therapy, Inc.

     407        33,805  

UnitedHealth Group, Inc.

     36,045        10,913,705  

Universal Health Services, Inc., Class B

     2,871        315,523  

Viemed Healthcare, Inc.(a)

     1,492        16,173  
    

 

 

  
     31,736,534  
Health Care Technology — 0.3%  

Allscripts Healthcare Solutions, Inc.(a)

     5,814        52,326  
 

 

 

SCHEDULES OF INVESTMENTS

   57

Schedule of Investments  (continued)

July 31, 2020

   

iShares Total U.S. Stock Market Index Fund

(Percentages shown are based on Net Assets)

 

Security   Shares      Value  
Health Care Technology (continued)  

Cerner Corp.

     11,754      $ 816,315  

Change Healthcare, Inc.(a)

     9,480        110,537  

Computer Programs & Systems, Inc.

     440        10,859  

Evolent Health, Inc., Class A(a)(b)

     2,102        24,488  

Health Catalyst, Inc.(a)(b)

     1,394        48,651  

HealthStream, Inc.(a)

     776        17,037  

HMS Holdings Corp.(a)

     3,400        110,500  

iCAD, Inc.(a)

     1,095        10,096  

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

     2,969        69,861  

Inspire Medical Systems, Inc.(a)

     1,016        100,950  

Livongo Health, Inc.(a)(b)

     2,091        266,080  

NextGen Healthcare, Inc.(a)

     1,626        23,772  

Omnicell, Inc.(a)

     1,546        108,668  

OptimizeRx Corp.(a)

     178        2,519  

Phreesia, Inc.(a)

     1,206        36,252  

Schrodinger, Inc.(a)(b)

     500        36,190  

Simulations Plus, Inc.

     408        28,723  

Tabula Rasa HealthCare, Inc.(a)(b)

     778        43,724  

Teladoc Health, Inc.(a)

     2,818        669,641  

Veeva Systems, Inc., Class A(a)

     5,091        1,346,926  

Vocera Communications, Inc.(a)

     1,222        37,601  
    

 

 

  
     3,971,716  
Hotels, Restaurants & Leisure — 1.6%  

Accel Entertainment, Inc., Class A(a)

     2,234        17,850  

Aramark

     8,942        188,855  

BBX Capital Corp.

     372        5,178  

Biglari Holdings, Inc., Class B(a)

     20        1,299  

BJ’s Restaurants, Inc.

     673        13,500  

Bloomin’ Brands, Inc.

     3,149        36,277  

Boyd Gaming Corp.

     3,025        71,602  

Brinker International, Inc.

     1,778        47,810  

Caesars Entertainment, Inc.(a)

     3,201        99,391  

Carnival Corp.(b)

     17,602        244,316  

Carrols Restaurant Group, Inc.(a)

     896        5,501  

Century Casinos, Inc.(a)

     1,395        5,622  

Cheesecake Factory, Inc.

     1,393        33,432  

Chipotle Mexican Grill, Inc.(a)

     1,062        1,226,780  

Choice Hotels International, Inc.

     1,185        99,587  

Churchill Downs, Inc.

     1,370        189,772  

Chuy’s Holdings, Inc.(a)

     546        8,687  

Cracker Barrel Old Country Store, Inc.

     960        106,051  

Darden Restaurants, Inc.

     4,951        375,781  

Dave & Buster’s Entertainment, Inc.

     1,937        23,903  

Del Taco Restaurants, Inc.(a)

     678        5,187  

Denny’s Corp.(a)

     1,915        17,015  

Dine Brands Global, Inc.

     553        25,123  

Domino’s Pizza, Inc.

     1,485        574,116  

Dunkin’ Brands Group, Inc.

     3,213        220,830  

El Pollo Loco Holdings, Inc.(a)

     399        7,884  

Everi Holdings, Inc.(a)

     3,894        22,118  

Extended Stay America, Inc.

     7,132        81,376  

Fiesta Restaurant Group, Inc.(a)

     813        5,268  

GAN Ltd.(a)

     488        9,443  

Golden Entertainment, Inc.(a)

     589        5,036  

Hilton Grand Vacations, Inc.(a)

     2,971        60,311  

Hilton Worldwide Holdings, Inc.

     10,468        785,623  

Hyatt Hotels Corp., Class A

     1,279        61,392  

International Game Technology PLC

     3,361        33,139  

Jack in the Box, Inc.

     982        80,632  

Las Vegas Sands Corp.

     12,674        553,093  

Lindblad Expeditions Holdings, Inc.(a)

     684        4,959  

Marcus Corp.

     914        12,622  

Marriott International, Inc., Class A

     10,313        864,487  

Marriott Vacations Worldwide Corp.

     1,509        127,752  
Security   Shares      Value  
Hotels, Restaurants & Leisure (continued)  

McDonald’s Corp.

     28,402      $ 5,517,941  

MGM Resorts International

     18,125        291,631  

Monarch Casino & Resort, Inc.(a)

     605        21,895  

Nathan’s Famous, Inc.

     78        3,973  

Noodles & Co.(a)

     1,836        12,760  

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

     9,789        133,522  

Papa John’s International, Inc.

     1,277        120,894  

Penn National Gaming, Inc.(a)

     5,068        171,552  

Planet Fitness, Inc., Class A(a)

     3,101        161,872  

PlayAGS, Inc.(a)

     1,281        4,330  

RCI Hospitality Holdings, Inc.

     294        3,552  

Red Robin Gourmet Burgers, Inc.(a)

     441        3,854  

Red Rock Resorts, Inc., Class A

     2,802        30,710  

Royal Caribbean Cruises Ltd.

     6,593        321,145  

Ruth’s Hospitality Group, Inc.

     865        5,791  

Scientific Games Corp., Class A(a)

     2,471        43,415  

SeaWorld Entertainment, Inc.(a)

     1,800        26,046  

Shake Shack, Inc., Class A(a)

     1,438        69,815  

Six Flags Entertainment Corp.

     2,839        49,370  

Starbucks Corp.

     44,669        3,418,519  

Target Hospitality Corp.(a)

     2,425        3,468  

Texas Roadhouse, Inc.

     2,602        146,206  

Twin River Worldwide Holdings, Inc.

     985        21,237  

Vail Resorts, Inc.

     1,533        294,382  

Wendy’s Co.

     6,902        159,988  

Wingstop, Inc.

     1,153        180,156  

Wyndham Destinations, Inc.

     3,364        89,482  

Wyndham Hotels & Resorts, Inc.

     3,606        159,241  

Wynn Resorts Ltd.

     3,797        275,017  

Yum China Holdings, Inc.

     13,836        708,957  

Yum! Brands, Inc.

     11,516        1,048,532  
    

 

 

  
     19,857,853  
Household Durables — 0.5%  

Beazer Homes USA, Inc.(a)

     1,012        11,324  

Cavco Industries, Inc.(a)

     333        66,710  

Century Communities, Inc.(a)

     1,295        46,128  

D.R. Horton, Inc.

     12,731        842,283  

Ethan Allen Interiors, Inc.

     842        9,969  

Garmin Ltd.

     5,655        557,526  

GoPro, Inc., Class A(a)

     5,980        31,634  

Green Brick Partners, Inc.(a)

     414        5,713  

Hamilton Beach Brands Holding Co., Class A

     190        2,888  

Helen of Troy Ltd.(a)

     978        184,108  

Hooker Furniture Corp.

     333        7,126  

Installed Building Products, Inc.(a)

     876        69,300  

iRobot Corp.(a)

     1,117        81,195  

KB Home

     3,331        112,055  

La-Z-Boy, Inc.

     1,540        43,828  

Leggett & Platt, Inc.

     4,873        195,359  

Lennar Corp., Class A

     9,756        705,847  

Lennar Corp., Class B

     1,295        69,762  

LGI Homes, Inc.(a)

     918        104,753  

Lifetime Brands, Inc.

     464        3,271  

Lovesac Co.(a)(b)

     313        9,947  

M/I Homes, Inc.(a)

     1,039        43,254  

MDC Holdings, Inc.

     1,916        85,894  

Meritage Homes Corp.(a)

     1,426        141,431  

Mohawk Industries, Inc.(a)

     2,287        182,617  

NACCO Industries, Inc., Class A

     95        2,075  

Newell Brands, Inc.

     14,487        237,587  

NVR, Inc.(a)

     127        499,129  

PulteGroup, Inc.

     10,057        438,485  

Purple Innovation, Inc.(a)

     681        16,596  

Skyline Champion Corp.(a)

     1,829        51,633  
 

 

 

58  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (continued)

July 31, 2020

   

iShares Total U.S. Stock Market Index Fund

(Percentages shown are based on Net Assets)

 

Security   Shares      Value  
Household Durables (continued)  

Sonos, Inc.(a)

     3,363      $ 53,808  

Taylor Morrison Home Corp.(a)

     5,089        119,337  

Tempur Sealy International, Inc.(a)

     1,756        142,148  

Toll Brothers, Inc.

     4,605        175,911  

TopBuild Corp.(a)

     1,232        162,525  

TRI Pointe Group, Inc.(a)

     5,257        87,897  

Tupperware Brands Corp.

     1,723        26,586  

Turtle Beach Corp.(a)

     776        14,232  

Universal Electronics, Inc.(a)

     483        22,252  

Whirlpool Corp.

     2,314        377,460  
    

 

 

  
     6,041,583  
Household Products — 1.5%  

Central Garden & Pet Co.(a)

     682        25,820  

Central Garden & Pet Co., Class A(a)

     1,246        43,174  

Church & Dwight Co., Inc.

     9,442        909,548  

Clorox Co.

     4,794        1,133,829  

Colgate-Palmolive Co.

     32,051        2,474,337  

Energizer Holdings, Inc.

     2,281        114,347  

Kimberly-Clark Corp.

     12,988        1,974,695  

Oil-Dri Corp. of America

     141        4,903  

Procter & Gamble Co.

     93,247        12,226,547  

Reynolds Consumer Products, Inc.

     1,719        58,549  

Spectrum Brands Holdings, Inc.

     1,599        86,602  

WD-40 Co.

     520        102,206  
    

 

 

  
     19,154,557  
Independent Power and Renewable Electricity Producers — 0.1%  

AES Corp.

     25,592        389,766  

Atlantic Power Corp.(a)

     4,381        8,587  

Clearway Energy, Inc., Class A

     2,467        56,519  

Clearway Energy, Inc., Class C

     2,114        51,878  

NRG Energy, Inc.

     9,656        326,469  

Ormat Technologies, Inc.(b)

     1,497        89,072  

Sunnova Energy International, Inc.(a)

     1,503        37,590  

TerraForm Power, Inc., Class A

     3,281        63,487  

Vistra Energy Corp.

     18,634        347,710  

Vivint Solar, Inc.(a)

     1,711        34,802  
    

 

 

  
     1,405,880  
Industrial Conglomerates — 0.9%  

3M Co.

     21,475        3,231,343  

BWX Technologies, Inc.

     3,650        198,998  

Carlisle Cos., Inc.

     2,142        255,069  

General Electric Co.

     332,550        2,018,579  

Honeywell International, Inc.

     26,868        4,013,273  

Raven Industries, Inc.

     1,286        27,790  

Roper Technologies, Inc.

     3,966        1,715,097  

Seaboard Corp.

     12        32,439  

Standex International Corp.

     383        20,510  
    

 

 

  
     11,513,098  
Insurance — 2.1%  

Aflac, Inc.

     27,314        971,559  

Alleghany Corp.

     551        287,798  

Allstate Corp.

     12,053        1,137,683  

Ambac Financial Group, Inc.(a)

     1,699        21,747  

American Equity Investment Life Holding Co.

     2,793        71,082  

American Financial Group, Inc.

     2,886        175,382  

American International Group, Inc.

     32,816        1,054,706  

American National Group, Inc.

     327        24,084  

AMERISAFE, Inc.

     360        22,846  

Aon PLC, Class A

     8,745        1,794,649  

Arch Capital Group Ltd.(a)

     14,883        457,652  

Argo Group International Holdings Ltd.

     1,168        39,140  

Arthur J Gallagher & Co.

     7,172        770,918  

Assurant, Inc.

     2,342        251,695  
Security   Shares      Value  
Insurance (continued)  

Assured Guaranty Ltd.

     3,485      $ 76,077  

Athene Holding Ltd., Class A(a)

     4,479        144,448  

Axis Capital Holdings Ltd.

     3,136        125,816  

Benefytt Technologies, Inc.(a)

     348        10,760  

Brighthouse Financial, Inc.(a)

     4,012        113,700  

Brown & Brown, Inc.

     8,978        408,230  

BRP Group, Inc., Class A(a)

     869        15,164  

Chubb Ltd.

     17,225        2,191,709  

Cincinnati Financial Corp.

     5,800        451,994  

Citizens, Inc.(a)

     1,392        7,990  

CNA Financial Corp.

     1,232        41,026  

CNO Financial Group, Inc.

     6,029        91,038  

eHealth, Inc.(a)

     982        67,895  

Employers Holdings, Inc.

     810        26,341  

Enstar Group Ltd.(a)

     489        82,127  

Erie Indemnity Co., Class A

     971        204,026  

Everest Re Group Ltd.

     1,539        336,718  

FBL Financial Group, Inc., Class A

     309        10,747  

FedNat Holding Co.

     339        3,173  

Fidelity National Financial, Inc.

     10,477        339,036  

First American Financial Corp.

     4,221        215,313  

Genworth Financial, Inc., Class A(a)

     17,722        36,153  

Global Indemnity Ltd.

     223        5,096  

Globe Life, Inc.(a)

     4,108        326,997  

Goosehead Insurance, Inc., Class A(a)

     501        51,768  

Greenlight Capital Re Ltd., Class A(a)

     1,310        8,463  

Hanover Insurance Group, Inc.

     1,478        150,579  

Hartford Financial Services Group, Inc.

     13,723        580,757  

HCI Group, Inc.

     211        9,415  

Heritage Insurance Holdings, Inc.

     585        6,944  

Hilltop Holdings, Inc.

     2,641        51,420  

Horace Mann Educators Corp.

     1,105        41,526  

Independence Holding Co.

     268        8,860  

Investors Title Co.

     51        5,869  

James River Group Holdings Ltd.

     1,134        52,527  

Kemper Corp.

     2,407        188,998  

Kinsale Capital Group, Inc.

     804        156,700  

Lincoln National Corp.

     7,297        271,959  

Loews Corp.

     9,366        341,016  

Markel Corp.(a)

     520        543,161  

Marsh & McLennan Cos., Inc.

     19,275        2,247,465  

MBIA, Inc.(a)

     2,769        22,180  

Mercury General Corp.

     1,102        47,287  

MetLife, Inc.

     29,370        1,111,654  

National General Holdings Corp.

     2,407        81,814  

National Western Life Group, Inc., Class A

     82        15,973  

Old Republic International Corp.

     11,097        178,329  

Palomar Holdings, Inc.(a)(b)

     746        68,140  

Primerica, Inc.

     1,584        189,541  

Principal Financial Group, Inc.

     10,396        441,102  

ProAssurance Corp.

     1,892        27,812  

Progressive Corp.

     22,319        2,016,298  

Protective Insurance Corp., Class B

     404        5,171  

Prudential Financial, Inc.

     15,162        960,816  

Reinsurance Group of America, Inc.

     2,612        222,673  

RenaissanceRe Holdings Ltd.

     1,706        307,728  

RLI Corp.

     1,497        131,931  

Safety Insurance Group, Inc.

     657        49,715  

Selective Insurance Group, Inc.

     2,322        126,177  

State Auto Financial Corp.

     431        6,685  

Stewart Information Services Corp.

     801        33,602  

Third Point Reinsurance Ltd.(a)

     2,568        20,005  

Travelers Cos., Inc.

     9,692        1,108,959  

Trupanion, Inc.(a)

     1,160        58,661  

United Fire Group, Inc.

     693        17,581  
 

 

 

SCHEDULES OF INVESTMENTS

   59

Schedule of Investments  (continued)

July 31, 2020

   

iShares Total U.S. Stock Market Index Fund

(Percentages shown are based on Net Assets)

 

Security   Shares      Value  
Insurance (continued)  

United Insurance Holdings Corp.

     649      $ 4,803  

Universal Insurance Holdings, Inc.

     1,090        19,086  

Unum Group

     7,472        128,743  

W.R. Berkley Corp.

     5,353        330,548  

Watford Holdings Ltd.(a)

     939        15,409  

White Mountains Insurance Group Ltd.

     123        108,256  

Willis Towers Watson PLC

     4,914        1,031,989  
    

 

 

  
     26,018,610  
Interactive Media & Services — 4.9%  

Alphabet, Inc., Class A(a)

     11,419        16,990,901  

Alphabet, Inc., Class C(a)

     11,402        16,908,710  

Cargurus, Inc.(a)

     3,222        93,084  

Cars.com, Inc.(a)

     2,829        22,971  

ComScore, Inc.(a)

     2,806        8,418  

DHI Group, Inc.(a)

     2,727        6,817  

Eventbrite, Inc., Class A(a)

     2,880        24,538  

EverQuote, Inc., Class A(a)(b)

     585        31,853  

Facebook, Inc., Class A(a)

     91,862        23,302,633  

IAC/InterActiveCorp(a)

     2,866        379,516  

Match Group, Inc.(a)

     8,405        863,193  

Meet Group, Inc.(a)

     2,551        15,893  

Pinterest, Inc., Class A(a)

     15,374        527,174  

QuinStreet, Inc.(a)

     1,844        21,529  

TrueCar, Inc.(a)(b)

     2,993        11,254  

Twitter, Inc.(a)

     29,441        1,071,652  

Yelp, Inc.(a)

     2,466        61,601  

Zillow Group, Inc., Class A(a)

     2,173        147,960  

Zillow Group, Inc., Class C(a)(b)

     5,195        355,286  
    

 

 

  
     60,844,983  
Internet & Direct Marketing Retail — 4.7%  

1-800-Flowers.com, Inc., Class A(a)

     740        20,905  

Amazon.com, Inc.(a)

     16,225        51,346,933  

Booking Holdings, Inc.(a)

     1,567        2,604,558  

CarParts.com, Inc.(a)

     1,325        18,212  

Duluth Holdings, Inc., Class B(a)(b)

     128        946  

eBay, Inc.

     25,569        1,413,454  

Etsy, Inc.(a)

     4,482        530,579  

Expedia Group, Inc.

     5,146        416,878  

Gaia, Inc.(a)(b)

     430        3,947  

Groupon, Inc.(a)

     820        12,587  

GrubHub, Inc.(a)(b)

     3,498        252,696  

Lands’ End, Inc.(a)

     215        1,853  

Liberty TripAdvisor Holdings, Inc., Series A(a)

     2,921        7,244  

Liquidity Services, Inc.(a)

     954        4,913  

Magnite, Inc.(a)

     3,427        20,579  

Overstock.com, Inc.(a)

     1,655        125,101  

PetMed Express, Inc.

     619        19,313  

Quotient Technology, Inc.(a)

     2,789        22,340  

Qurate Retail, Inc., Series A(a)

     15,045        164,141  

RealReal, Inc.(a)

     2,266        30,908  

Shutterstock, Inc.

     702        38,147  

Stamps.com, Inc.(a)

     603        156,949  

Stitch Fix, Inc., Class A(a)(b)

     2,253        49,904  

TripAdvisor, Inc.

     3,844        77,764  

Waitr Holdings, Inc.(a)

     3,793        20,255  

Wayfair, Inc., Class A(a)(b)

     2,516        669,482  
    

 

 

  
     58,030,588  
IT Services — 5.5%  

Accenture PLC, Class A

     24,335        5,470,021  

Akamai Technologies, Inc.(a)

     6,144        690,831  

Alliance Data Systems Corp.

     1,870        82,953  

Amdocs Ltd.

     5,029        312,301  

Automatic Data Processing, Inc.

     16,454        2,186,901  
Security   Shares      Value  
IT Services (continued)  

Black Knight, Inc.(a)

     5,480      $ 410,562  

Booz Allen Hamilton Holding Corp.

     5,152        421,228  

Brightcove, Inc.(a)

     2,245        23,752  

Broadridge Financial Solutions, Inc.

     4,327        581,289  

CACI International, Inc., Class A(a)

     922        191,610  

Cardtronics PLC, Class A(a)

     1,379        30,793  

Cass Information Systems, Inc.

     434        15,550  

Cognizant Technology Solutions Corp., Class A

     20,699        1,414,156  

Conduent, Inc.(a)

     7,311        13,964  

CoreLogic, Inc.

     3,133        213,545  

CSG Systems International, Inc.

     1,261        53,126  

DXC Technology Co.

     9,913        177,542  

Endurance International Group Holdings, Inc.(a)

     2,163        12,264  

EPAM Systems, Inc.(a)

     2,033        589,733  

Euronet Worldwide, Inc.(a)

     1,992        191,511  

EVERTEC, Inc.

     2,309        71,695  

Evo Payments, Inc., Class A(a)

     1,354        30,722  

ExlService Holdings, Inc.(a)

     1,373        87,954  

Fastly, Inc., Class A(a)

     2,769        267,181  

Fidelity National Information Services, Inc.

     23,556        3,446,478  

Fiserv, Inc.(a)

     21,331        2,128,621  

FleetCor Technologies, Inc.(a)

     3,160        817,081  

Gartner, Inc.(a)

     3,364        419,289  

Genpact Ltd.

     7,121        283,558  

Global Payments, Inc.

     11,353        2,021,061  

GoDaddy, Inc., Class A(a)

     6,349        446,208  

GreenSky, Inc., Class A(a)

     2,934        16,563  

GTT Communications, Inc.(a)(b)

     540        3,402  

Hackett Group, Inc.

     467        6,440  

International Business Machines Corp.

     33,957        4,174,674  

Jack Henry & Associates, Inc.

     2,921        520,814  

Leidos Holdings, Inc.

     5,173        492,263  

Limelight Networks, Inc.(a)

     5,082        31,864  

LiveRamp Holdings, Inc.(a)

     2,441        111,236  

ManTech International Corp., Class A

     1,047        72,850  

Mastercard, Inc., Class A

     33,717        10,402,706  

MAXIMUS, Inc.

     2,449        181,740  

MoneyGram International, Inc.(a)

     3,547        12,344  

MongoDB, Inc.(a)(b)

     1,613        369,506  

NIC, Inc.

     2,423        53,112  

Okta, Inc.(a)

     4,382        968,334  

Paychex, Inc.

     12,225        879,222  

PayPal Holdings, Inc.(a)

     44,916        8,806,680  

Paysign, Inc.(a)

     723        6,753  

Perficient, Inc.(a)

     1,591        62,383  

Perspecta, Inc.

     5,049        108,049  

Repay Holdings Corp.(a)

     1,535        33,970  

Sabre Corp.

     10,088        76,265  

Science Applications International Corp.

     2,163        172,997  

Square, Inc., Class A(a)

     13,810        1,793,229  

StoneCo Ltd., Class A(a)

     5,920        282,443  

Switch, Inc., Class A

     3,413        61,400  

Teradata Corp.(a)

     4,094        85,974  

TTEC Holdings, Inc.

     814        38,633  

Tucows, Inc., Class A(a)

     300        18,153  

Twilio, Inc., Class A(a)

     4,907        1,361,300  

Unisys Corp.(a)

     2,599        30,902  

VeriSign, Inc.(a)

     3,924        830,632  

Verra Mobility Corp.(a)

     4,831        49,421  

Virtusa Corp.(a)

     919        37,311  

Visa, Inc., Class A

     64,570        12,294,128  

Western Union Co.

     15,512        376,631  

WEX, Inc.(a)

     1,676        265,428  
    

 

 

  
     68,193,232  
 

 

 

60  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (continued)

July 31, 2020

   

iShares Total U.S. Stock Market Index Fund

(Percentages shown are based on Net Assets)

 

Security   Shares      Value  
Leisure Products — 0.1%  

Brunswick Corp.

     2,991      $ 200,337  

Callaway Golf Co.

     3,953        75,305  

Clarus Corp.

     460        5,511  

Escalade, Inc.

     1,205        18,497  

Hasbro, Inc.

     4,794        348,811  

Johnson Outdoors, Inc., Class A

     138        12,083  

Malibu Boats, Inc., Class A(a)

     690        40,558  

MasterCraft Boat Holdings, Inc.(a)

     515        10,660  

Mattel, Inc.(a)

     13,569        150,752  

Nautilus, Inc.(a)

     1,478        15,416  

Peloton Interactive, Inc., Class A(a)

     3,734        254,733  

Polaris, Inc.

     2,270        235,240  

Smith & Wesson Brands, Inc.(a)(b)

     2,569        61,373  

Sturm Ruger & Co., Inc.

     761        61,923  

Vista Outdoor, Inc.(a)

     2,684        46,031  

YETI Holdings, Inc.(a)

     2,797        136,745  
    

 

 

  
     1,673,975  
Life Sciences Tools & Services — 1.3%  

10X Genomics, Inc., Class A(a)

     2,077        204,314  

Accelerate Diagnostics, Inc.(a)(b)

     1,051        15,271  

Adaptive Biotechnologies Corp.(a)

     2,755        102,817  

Agilent Technologies, Inc.(b)

     11,835        1,140,065  

Avantor, Inc.(a)

     15,841        349,769  

Bio-Rad Laboratories, Inc., Class A(a)

     804        422,011  

Bio-Techne Corp.

     1,459        401,458  

Bruker Corp.

     4,001        178,525  

Charles River Laboratories International, Inc.(a)

     1,836        365,346  

ChromaDex Corp.(a)

     2,577        13,040  

Enzo Biochem, Inc.(a)

     451        1,073  

Fluidigm Corp.(a)

     1,669        11,750  

Illumina, Inc.(a)

     5,626        2,150,032  

IQVIA Holdings, Inc.(a)

     7,288        1,154,346  

Luminex Corp.

     1,645        59,878  

Medpace Holdings, Inc.(a)

     1,079        128,779  

Mettler-Toledo International, Inc.(a)

     904        845,240  

NanoString Technologies, Inc.(a)

     1,383        49,940  

NeoGenomics, Inc.(a)

     4,100        156,743  

Pacific Biosciences of California, Inc.(a)

     5,309        19,803  

PerkinElmer, Inc.

     4,215        501,206  

Personalis, Inc.(a)

     1,047        18,228  

PPD, Inc.(a)

     2,497        73,337  

PRA Health Sciences, Inc.(a)

     2,409        256,703  

QIAGEN NV(a)

     8,452        417,951  

Quanterix Corp.(a)

     647        20,905  

Repligen Corp.(a)

     1,981        298,953  

Syneos Health, Inc.(a)

     2,287        142,686  

Thermo Fisher Scientific, Inc.

     15,112        6,255,612  

Waters Corp.(a)

     2,379        507,084  
    

 

 

  
     16,262,865  
Machinery — 1.7%  

AGCO Corp.

     2,577        169,129  

Alamo Group, Inc.

     335        34,542  

Albany International Corp., Class A

     1,186        57,023  

Allison Transmission Holdings, Inc.

     4,089        152,765  

Altra Industrial Motion Corp.

     2,663        91,155  

Astec Industries, Inc.

     811        36,081  

Barnes Group, Inc.

     1,726        63,638  

Blue Bird Corp.(a)

     429        5,375  

Caterpillar, Inc.

     20,697        2,750,217  

Chart Industries, Inc.(a)

     1,517        103,960  

CIRCOR International, Inc.(a)

     747        19,586  

Colfax Corp.(a)

     3,869        112,511  

Columbus McKinnon Corp.

     771        25,543  

Crane Co.

     1,824        103,184  
Security   Shares      Value  
Machinery (continued)  

Cummins, Inc.

     5,621      $ 1,086,314  

Deere & Co.

     10,791        1,902,561  

DMC Global, Inc.

     502        14,749  

Donaldson Co., Inc.

     4,731        228,697  

Douglas Dynamics, Inc.

     741        26,194  

Dover Corp.

     5,540        570,232  

Energy Recovery, Inc.(a)(b)

     703        5,336  

Enerpac Tool Group Corp.

     1,778        33,604  

EnPro Industries, Inc.

     672        32,075  

ESCO Technologies, Inc.

     1,214        104,331  

Evoqua Water Technologies Corp.(a)

     3,569        68,632  

Federal Signal Corp.

     2,841        87,815  

Flowserve Corp.

     5,174        144,199  

Fortive Corp.

     11,282        791,884  

Gates Industrial Corp. PLC(a)(b)

     1,204        12,690  

Gencor Industries, Inc.(a)

     1,081        12,940  

Gorman-Rupp Co.

     505        15,281  

Graco, Inc.

     6,418        341,694  

Graham Corp.

     286        3,764  

Greenbrier Cos., Inc.

     953        24,521  

Helios Technologies, Inc.(b)

     1,047        39,608  

Hillenbrand, Inc.

     2,582        75,472  

Hurco Cos., Inc.

     172        4,771  

Hyster-Yale Materials Handling, Inc.

     411        15,334  

IDEX Corp.

     2,869        472,869  

Illinois Tool Works, Inc.

     12,026        2,224,690  

Ingersoll Rand, Inc.(a)

     13,124        414,587  

ITT, Inc.

     3,477        200,727  

John Bean Technologies Corp.

     1,283        120,294  

Kadant, Inc.

     395        42,861  

Kennametal, Inc.

     3,094        83,414  

LB Foster Co., Class A(a)

     354        4,977  

Lincoln Electric Holdings, Inc.

     2,273        205,456  

Lindsay Corp.(b)

     413        40,049  

Luxfer Holdings PLC

     874        11,100  

Lydall, Inc.(a)

     520        8,424  

Manitowoc Co., Inc.(a)

     1,232        13,133  

Meritor, Inc.(a)

     2,656        60,424  

Middleby Corp.(a)(b)

     2,167        179,991  

Miller Industries, Inc.

     363        10,291  

Mueller Industries, Inc.

     2,284        63,861  

Mueller Water Products, Inc., Class A

     6,381        64,576  

Navistar International Corp.(a)

     1,737        55,636  

NN, Inc.

     2,043        10,746  

Nordson Corp.

     2,166        419,403  

Omega Flex, Inc.

     130        15,828  

Oshkosh Corp.

     2,639        207,742  

Otis Worldwide Corp.

     15,606        979,120  

PACCAR, Inc.

     12,885        1,096,256  

Parker-Hannifin Corp.

     4,887        874,382  

Pentair PLC

     6,432        275,611  

Proto Labs, Inc.(a)(b)

     1,060        127,327  

RBC Bearings, Inc.(a)

     974        119,237  

REV Group, Inc.

     1,078        7,007  

Rexnord Corp.

     4,196        121,558  

Shyft Group, Inc.

     1,242        23,449  

Snap-on, Inc.

     2,121        309,390  

SPX Corp.(a)

     1,924        80,808  

SPX FLOW, Inc.(a)

     1,814        72,705  

Stanley Black & Decker, Inc.

     5,889        902,902  

Tennant Co.

     616        41,038  

Terex Corp.

     2,288        43,129  

Timken Co.

     2,478        113,146  

Toro Co.

     4,185        298,600  

TriMas Corp.(a)

     1,521        35,591  
 

 

 

SCHEDULES OF INVESTMENTS

   61

Schedule of Investments  (continued)

July 31, 2020

   

iShares Total U.S. Stock Market Index Fund

(Percentages shown are based on Net Assets)

 

Security   Shares      Value  
Machinery (continued)  

Trinity Industries, Inc.

     3,944      $ 77,026  

Valmont Industries, Inc.

     878        106,414  

Wabash National Corp.

     1,971        22,450  

Watts Water Technologies, Inc., Class A

     1,043        87,497  

Welbilt, Inc.(a)

     4,491        27,305  

Westinghouse Air Brake Technologies Corp.

     6,954        432,469  

Woodward, Inc.

     2,169        162,545  

Xylem, Inc.

     6,880        502,102  
    

 

 

  
     21,237,550  
Marine — 0.0%  

Costamare, Inc.

     1,248        5,678  

Eagle Bulk Shipping, Inc.(a)(b)

     1,522        3,699  

Genco Shipping & Trading Ltd.

     1,092        7,415  

Kirby Corp.(a)

     2,395        110,745  

Matson, Inc.

     1,548        56,378  

Safe Bulkers, Inc.(a)

     2,358        3,136  

Scorpio Bulkers, Inc.

     134        1,964  
    

 

 

  
     189,015  
Media — 1.4%  

Altice USA, Inc., Class A(a)

     12,473        336,646  

AMC Networks, Inc., Class A(a)

     1,603        37,029  

Boston Omaha Corp., Class A(a)

     863        13,722  

Cable One, Inc.

     194        353,577  

Cardlytics, Inc.(a)(b)

     1,008        66,951  

Central European Media Enterprises Ltd., Class A(a)

     2,333        9,285  

Charter Communications, Inc., Class A(a)(b)

     5,704        3,308,320  

Comcast Corp., Class A

     173,145        7,410,606  

Daily Journal Corp.(a)(b)

     60        17,040  

Discovery, Inc., Class A(a)(b)

     5,778        121,916  

Discovery, Inc., Class C(a)

     12,758        241,764  

DISH Network Corp., Class A(a)

     9,440        303,118  

Emerald Holding, Inc.

     736        2,002  

Entercom Communications Corp., Class A

     3,599        5,039  

Entravision Communications Corp., Class A

     1,689        2,229  

Eros International PLC(a)

     5,502        15,626  

EW Scripps Co., Class A

     1,830        20,825  

Fluent, Inc.(a)

     1,571        2,859  

Fox Corp., Class A

     13,004        335,113  

Fox Corp., Class B(a)

     5,912        152,352  

Gannett Co., Inc.

     4,135        6,120  

GCI Liberty, Inc., Class A(a)

     3,779        296,236  

Gray Television, Inc.(a)

     3,459        49,602  

iHeartMedia, Inc., Class A(a)

     1,130        9,447  

IMAX Corp.(a)

     2,341        26,430  

Interpublic Group of Cos., Inc.

     14,447        260,768  

John Wiley & Sons, Inc., Class A

     1,563        52,876  

Liberty Broadband Corp., Class A(a)

     1,216        164,172  

Liberty Broadband Corp., Class C(a)

     3,726        511,468  

Liberty Latin America Ltd., Class A(a)

     2,374        24,405  

Liberty Latin America Ltd., Class C(a)

     3,518        35,989  

Liberty Media Corp. — Liberty Formula One, Class A(a)

     581        19,225  

Liberty Media Corp. — Liberty Formula One, Class C(a)

     7,854        278,346  

Liberty Media Corp. — Liberty SiriusXM, Class A(a)

     3,363        116,999  

Liberty Media Corp. — Liberty SiriusXM, Class C(a)

     6,893        241,186  

Liberty Media Corp. — Liberty Braves, Class A(a)

     602        11,384  

Liberty Media Corp. — Liberty Braves, Class C(a)

     1,290        24,058  

Lions Gate Entertainment Corp.,
Class A(a)

     3,127        23,953  

Lions Gate Entertainment Corp.,
Class B(a)

     2,474        17,590  

Live Nation Entertainment, Inc.(a)

     5,435        254,412  

LiveXLive Media, Inc.(a)

     943        2,857  

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

     732        112,501  

Meredith Corp.

     1,332        19,128  

MSG Networks, Inc., Class A(a)

     1,788        17,040  

National CineMedia, Inc.

     2,288        5,651  
Security   Shares      Value  
Media (continued)  

New York Times Co., Class A

     6,284      $ 289,944  

News Corp., Class A

     14,610        185,839  

News Corp., Class B

     5,383        68,687  

Nexstar Media Group, Inc., Class A

     1,635        143,308  

Omnicom Group, Inc.

     8,283        445,046  

Scholastic Corp.

     975        23,332  

Sinclair Broadcast Group, Inc., Class A

     2,243        46,206  

Sirius XM Holdings, Inc.(b)

     46,139        271,297  

TechTarget, Inc.(a)

     999        36,254  

TEGNA, Inc.

     7,946        93,604  

Tribune Publishing Co.

     502        4,895  

ViacomCBS, Inc., Class A

     277        7,684  

ViacomCBS, Inc., Class B

     20,877        544,263  

WideOpenWest, Inc.(a)

     921        5,029  
    

 

 

  
     17,503,250  
Metals & Mining — 0.4%  

Alcoa Corp.(a)

     7,441        96,733  

Allegheny Technologies, Inc.(a)

     4,571        39,722  

Arconic Corp.(a)

     3,509        57,162  

Carpenter Technology Corp.

     1,574        35,195  

Century Aluminum Co.(a)

     1,825        15,896  

Cleveland-Cliffs, Inc.

     14,012        72,582  

Coeur Mining, Inc.(a)

     10,214        80,997  

Commercial Metals Co.

     4,356        90,082  

Compass Minerals International, Inc.

     1,187        60,466  

Ferroglobe PLC(d)

     844        —  

Freeport-McMoRan, Inc.

     55,418        716,001  

Gold Resource Corp.

     1,386        6,084  

Haynes International, Inc.

     363        6,665  

Hecla Mining Co.

     17,962        99,150  

Kaiser Aluminum Corp.

     636        39,400  

Materion Corp.

     920        52,826  

Newmont Corp.

     30,728        2,126,378  

Novagold Resources, Inc.(a)

     8,391        76,526  

Nucor Corp.

     11,711        491,276  

Olympic Steel, Inc.

     97        1,026  

Reliance Steel & Aluminum Co.

     2,540        249,580  

Royal Gold, Inc.

     2,476        346,467  

Ryerson Holding Corp.(a)

     148        833  

Schnitzer Steel Industries, Inc., Class A

     861        15,842  

Southern Copper Corp.

     3,004        131,305  

Steel Dynamics, Inc.

     8,104        222,131  

SunCoke Energy, Inc.

     1,917        6,115  

TimkenSteel Corp.(a)

     1,376        5,050  

U.S. Silica Holdings, Inc.

     2,589        9,139  

United States Steel Corp.(b)

     9,606        63,976  

Warrior Met Coal, Inc.

     1,665        26,507  

Worthington Industries, Inc.

     1,445        54,072  
    

 

 

  
     5,295,184  
Mortgage Real Estate Investment Trusts (REITs) — 0.1%  

AGNC Investment Corp.

     21,999        299,186  

Annaly Capital Management, Inc.

     54,358        402,793  

Blackstone Mortgage Trust, Inc., Class A

     5,061        121,818  

Broadmark Realty Capital, Inc.

     5,258        48,479  

Chimera Investment Corp.

     8,610        77,404  

Colony Credit Real Estate, Inc.

     2,738        17,249  

Dynex Capital, Inc.

     695        10,738  

Ellington Financial, Inc.

     1,920        22,579  

Front Yard Residential Corp.

     2,051        17,782  

Granite Point Mortgage Trust, Inc.

     1,933        13,125  

Great Ajax Corp.

     332        2,862  

Invesco Mortgage Capital, Inc.

     6,966        21,386  

KKR Real Estate Finance Trust, Inc.

     1,316        21,911  

Ready Capital Corp.

     1,353        10,851  
 

 

 

62  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (continued)

July 31, 2020

   

iShares Total U.S. Stock Market Index Fund

(Percentages shown are based on Net Assets)

 

Security   Shares      Value  
Mortgage Real Estate Investment Trusts (REITs) (continued)  

TPG RE Finance Trust, Inc.

     1,767      $ 15,338  

Two Harbors Investment Corp.

     9,340        50,716  

Western Asset Mortgage Capital Corp.

     1,131        2,387  
    

 

 

  
     1,156,604  
Multi-Utilities — 0.9%  

Ameren Corp.

     9,385        753,052  

Avista Corp.

     2,622        97,355  

Black Hills Corp.

     2,424        140,253  

CenterPoint Energy, Inc.

     19,321        367,292  

CMS Energy Corp.

     10,689        686,020  

Consolidated Edison, Inc.

     12,795        983,040  

Dominion Energy, Inc.

     31,877        2,582,993  

DTE Energy Co.

     7,298        843,868  

MDU Resources Group, Inc.

     7,660        160,707  

NiSource, Inc.

     14,340        350,613  

NorthWestern Corp.

     1,857        104,475  

Public Service Enterprise Group, Inc.

     19,187        1,073,321  

Sempra Energy

     11,203        1,394,325  

WEC Energy Group, Inc.

     12,035        1,146,454  
    

 

 

  
     10,683,768  
Multiline Retail — 0.5%  

Big Lots, Inc.

     1,393        54,801  

Dillard’s, Inc., Class A(b)

     348        8,196  

Dollar General Corp.

     9,625        1,832,600  

Dollar Tree, Inc.(a)

     9,041        843,977  

Kohl’s Corp.

     5,755        109,575  

Macy’s, Inc.(b)

     10,824        65,594  

Nordstrom, Inc.(b)

     4,470        61,194  

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

     2,021        212,407  

Target Corp.

     19,122        2,407,077  
    

 

 

  
     5,595,421  
Oil, Gas & Consumable Fuels — 2.1%  

Amyris, Inc.(a)(b)

     3,044        13,028  

Antero Midstream Corp.

     11,319        64,179  

Antero Resources Corp.(a)(b)

     10,080        29,837  

Apache Corp.

     14,615        224,340  

Arch Resources, Inc.

     592        18,364  

Ardmore Shipping Corp.

     703        2,889  

Berry Corp.

     2,607        12,266  

Bonanza Creek Energy, Inc.(a)

     672        12,224  

Brigham Minerals, Inc., Class A

     617        6,836  

Cabot Oil & Gas Corp.

     14,685        274,609  

Cheniere Energy, Inc.(a)

     8,842        437,502  

Chevron Corp.

     71,589        6,009,181  

Cimarex Energy Co.

     3,621        88,570  

Clean Energy Fuels Corp.(a)

     4,949        11,779  

CNX Resources Corp.(a)

     6,831        65,919  

Concho Resources, Inc.

     7,614        400,040  

ConocoPhillips

     41,284        1,543,609  

CONSOL Energy, Inc.(a)

     881        5,180  

Contango Oil & Gas Co.(a)

     4,501        8,012  

Continental Resources, Inc.

     3,232        55,881  

CVR Energy, Inc.

     1,053        20,218  

Delek US Holdings, Inc.

     2,513        43,927  

Devon Energy Corp.

     15,261        160,088  

DHT Holdings, Inc.

     4,668        26,514  

Diamond S Shipping, Inc.(a)

     1,594        13,995  

Diamondback Energy, Inc.

     5,937        236,649  

Dorian LPG Ltd.(a)

     1,250        10,675  

Energy Fuels, Inc.(a)

     4,782        8,177  

EOG Resources, Inc.

     22,442        1,051,408  

EQT Corp.

     10,020        145,490  

Equitrans Midstream Corp.

     15,873        153,174  
Security   Shares      Value  
Oil, Gas & Consumable Fuels (continued)  

Evolution Petroleum Corp.

     1,161      $ 3,042  

Exxon Mobil Corp.

     161,925        6,813,804  

Falcon Minerals Corp.

     1,711        4,295  

Frontline Ltd.

     4,838        38,704  

Golar LNG Ltd.

     3,854        28,905  

Goodrich Petroleum Corp.(a)

     829        6,176  

Green Plains, Inc.(a)

     1,196        15,464  

Gulfport Energy Corp.(a)

     5,379        5,433  

Hess Corp.

     10,535        518,427  

HollyFrontier Corp.

     5,849        160,848  

International Seaways, Inc.

     846        14,610  

Kinder Morgan, Inc.

     74,577        1,051,536  

Kosmos Energy Ltd.

     13,128        21,136  

Magnolia Oil & Gas Corp., Class A(a)(b)

     3,654        21,851  

Marathon Oil Corp.

     30,603        168,010  

Marathon Petroleum Corp.

     24,587        939,223  

Matador Resources Co.(a)

     4,298        37,307  

Montage Resources Corp.(a)

     38        163  

Murphy Oil Corp.

     5,383        71,109  

Noble Energy, Inc.

     18,366        183,476  

Nordic American Tankers Ltd.

     4,938        22,468  

Occidental Petroleum Corp.

     31,107        489,624  

ONEOK, Inc.

     16,783        468,414  

Overseas Shipholding Group, Inc., Class A(a)

     2,632        6,080  

Ovintiv, Inc.

     10,156        98,412  

Par Pacific Holdings, Inc.(a)

     1,459        10,811  

Parsley Energy, Inc., Class A

     11,819        129,773  

PBF Energy, Inc., Class A

     4,171        36,204  

PDC Energy, Inc.(a)

     4,302        61,347  

Peabody Energy Corp.

     2,502        7,806  

Penn Virginia Corp.(a)

     390        3,865  

Phillips 66

     16,679        1,034,432  

Pioneer Natural Resources Co.

     6,263        607,010  

PrimeEnergy Resources Corp.(a)

     80        5,700  

Range Resources Corp.

     8,998        58,127  

Renewable Energy Group, Inc.(a)

     1,619        44,652  

REX American Resources Corp.(a)(b)

     221        15,061  

Scorpio Tankers, Inc.(b)

     2,267        29,970  

SFL Corp. Ltd.

     3,785        31,453  

SM Energy Co.

     3,522        10,390  

Southwestern Energy Co.(a)

     22,056        53,596  

Talos Energy, Inc.(a)

     673        4,583  

Targa Resources Corp.

     8,502        155,417  

Tellurian, Inc.(a)(b)

     3,575        3,188  

Uranium Energy Corp.(a)

     5,795        5,611  

Valero Energy Corp.

     15,633        879,044  

W&T Offshore, Inc.(a)(b)

     2,856        6,455  

Whiting Petroleum Corp.(a)(b)

     3,508        2,736  

Williams Cos., Inc.

     46,224        884,265  

World Fuel Services Corp.

     2,370        55,766  

WPX Energy, Inc.(a)

     14,780        88,237  
    

 

 

  
     26,568,576  
Paper & Forest Products — 0.0%  

Boise Cascade Co.

     1,353        63,036  

Clearwater Paper Corp.(a)

     635        23,444  

Domtar Corp.

     2,027        42,547  

Louisiana-Pacific Corp.

     4,214        133,457  

Neenah, Inc.

     540        24,090  

PH Glatfelter Co.

     1,299        20,693  

Schweitzer-Mauduit International, Inc.

     1,205        39,199  

Verso Corp., Class A

     1,086        13,260  
    

 

 

  
     359,726  
Personal Products — 0.2%  

BellRing Brands, Inc., Class A(a)

     1,574        31,275  
 

 

 

SCHEDULES OF INVESTMENTS

   63

Schedule of Investments  (continued)

July 31, 2020

   

iShares Total U.S. Stock Market Index Fund

(Percentages shown are based on Net Assets)

 

Security   Shares      Value  
Personal Products (continued)  

Coty, Inc., Class A

     10,271      $ 38,105  

Edgewell Personal Care Co.(a)

     2,094        62,590  

elf Beauty, Inc.(a)(b)

     1,016        18,146  

Estee Lauder Cos., Inc., Class A

     8,469        1,672,966  

Herbalife Nutrition Ltd.(a)

     3,911        200,400  

Inter Parfums, Inc.

     578        23,635  

Lifevantage Corp.(a)(b)

     732        9,399  

Medifast, Inc.

     460        76,880  

Nature’s Sunshine Products, Inc.(a)

     255        2,425  

Nu Skin Enterprises, Inc., Class A

     1,980        88,803  

Revlon, Inc., Class A(a)(b)

     260        1,643  

USANA Health Sciences, Inc.(a)

     423        34,339  
    

 

 

  
     2,260,606  
Pharmaceuticals — 3.8%  

AcelRx Pharmaceuticals, Inc.(a)

     3,530        3,848  

Aerie Pharmaceuticals, Inc.(a)

     1,684        19,467  

Agile Therapeutics, Inc.(a)

     4,161        10,402  

Amneal Pharmaceuticals, Inc.(a)

     5,098        22,074  

Amphastar Pharmaceuticals, Inc.(a)

     1,216        24,344  

ANI Pharmaceuticals, Inc.(a)

     309        9,149  

Arvinas, Inc.(a)

     1,232        38,808  

Assembly Biosciences, Inc.(a)

     1,357        30,125  

Axsome Therapeutics, Inc.(a)

     1,104        78,748  

BioDelivery Sciences International, Inc.(a)

     3,852        16,140  

Bristol-Myers Squibb Co.

     86,688        5,085,118  

Cara Therapeutics, Inc.(a)

     1,585        26,057  

Catalent, Inc.(a)

     5,883        513,821  

Collegium Pharmaceutical, Inc.(a)

     1,582        24,964  

Corcept Therapeutics, Inc.(a)(b)

     3,744        55,973  

CorMedix, Inc.(a)(b)

     1,458        6,488  

Cymabay Therapeutics, Inc.(a)

     1,820        6,461  

Durect Corp.(a)

     7,508        14,716  

Elanco Animal Health, Inc.(a)

     15,275        360,948  

Eli Lilly & Co.

     32,245        4,846,101  

Eloxx Pharmaceuticals, Inc.(a)

     661        1,844  

Endo International PLC(a)

     9,338        32,496  

Evofem Biosciences, Inc.(a)

     492        1,471  

Evolus, Inc.(a)(b)

     275        897  

Fulcrum Therapeutics, Inc.(a)

     659        10,458  

Heska Corp.(a)

     201        19,340  

Horizon Therapeutics PLC(a)

     6,979        427,045  

Innoviva, Inc.(a)(b)

     2,582        34,973  

Intersect ENT, Inc.(a)

     830        14,268  

Intra-Cellular Therapies, Inc.(a)

     2,165        42,921  

Jazz Pharmaceuticals PLC(a)

     2,074        224,510  

Johnson & Johnson

     100,924        14,710,682  

Kala Pharmaceuticals, Inc.(a)

     1,156        10,115  

Lannett Co., Inc.(a)

     1,056        6,283  

Liquidia Technologies, Inc.(a)

     1,077        5,956  

Mallinckrodt PLC(a)(b)

     3,436        7,662  

Marinus Pharmaceuticals, Inc.(a)

     1,291        2,169  

Menlo Therapeutics, Inc.(a)(b)

     3,278        5,278  

Merck & Co., Inc.

     96,796        7,766,911  

Mylan NV(a)

     19,798        318,946  

MyoKardia, Inc.(a)

     1,908        171,968  

Nektar Therapeutics(a)(b)

     6,809        150,887  

NGM Biopharmaceuticals, Inc.(a)

     662        12,108  

Odonate Therapeutics, Inc.(a)

     353        12,839  

Omeros Corp.(a)(b)

     2,229        28,598  

Optinose, Inc.(a)(b)

     514        2,619  

Pacira BioSciences, Inc.(a)

     1,569        82,545  

Paratek Pharmaceuticals, Inc.(a)

     915        3,999  

Perrigo Co. PLC

     5,278        279,840  

Pfizer, Inc.

     213,167        8,202,666  
Security   Shares      Value  
Pharmaceuticals (continued)  

Phathom Pharmaceuticals, Inc.(a)(b)

     560      $ 18,626  

Phibro Animal Health Corp., Class A

     619        14,358  

Prestige Consumer Healthcare, Inc.(a)(b)

     2,612        97,140  

Provention Bio, Inc.(a)(b)

     1,609        16,718  

Reata Pharmaceuticals, Inc., Class A(a)

     931        137,509  

Relmada Therapeutics, Inc.(a)(b)

     534        19,422  

Revance Therapeutics, Inc.(a)

     2,019        47,406  

Satsuma Pharmaceuticals, Inc.(a)

     424        10,011  

SIGA Technologies, Inc.(a)

     1,580        10,144  

Supernus Pharmaceuticals, Inc.(a)

     1,606        35,758  

TherapeuticsMD, Inc.(a)(b)

     7,503        13,881  

Theravance Biopharma, Inc.(a)

     1,792        34,801  

Tricida, Inc.(a)

     1,280        17,126  

Verrica Pharmaceuticals, Inc.(a)(b)

     732        4,802  

WaVe Life Sciences Ltd.(a)

     1,000        8,780  

Xeris Pharmaceuticals, Inc.(a)(b)

     1,212        3,466  

Zoetis, Inc.

     18,190        2,759,059  

Zogenix, Inc.(a)

     2,357        56,073  
    

 

 

  
     47,091,126  
Professional Services — 0.5%  

ASGN, Inc.(a)

     1,855        126,993  

Barrett Business Services, Inc.

     250        13,170  

BG Staffing, Inc.

     403        3,659  

CBIZ, Inc.(a)

     1,845        44,612  

CoStar Group, Inc.(a)

     1,471        1,249,997  

CRA International, Inc.

     196        8,187  

Equifax, Inc.

     4,595        746,963  

Exponent, Inc.

     2,001        168,204  

Forrester Research, Inc.(a)

     474        16,642  

Franklin Covey Co.(a)

     195        3,528  

FTI Consulting, Inc.(a)

     1,374        164,111  

GP Strategies Corp.(a)(b)

     414        3,076  

Heidrick & Struggles International, Inc.

     563        11,389  

Huron Consulting Group, Inc.(a)

     877        41,850  

ICF International, Inc.

     640        43,270  

IHS Markit Ltd.

     15,148        1,222,898  

Insperity, Inc.

     1,410        94,273  

Kelly Services, Inc., Class A

     887        13,136  

Kforce, Inc.

     689        19,871  

Korn Ferry

     2,175        61,118  

ManpowerGroup, Inc.

     2,272        156,291  

Mistras Group, Inc.(a)

     335        1,183  

Nielsen Holdings PLC

     13,881        200,303  

Paylocity Holding Corp.(a)

     1,356        180,619  

Resources Connection, Inc.

     605        6,837  

Robert Half International, Inc.

     4,479        227,847  

TransUnion

     7,160        641,321  

TriNet Group, Inc.(a)

     1,574        103,884  

TrueBlue, Inc.(a)

     1,432        22,096  

Upwork, Inc.(a)

     3,805        57,151  

Verisk Analytics, Inc.

     6,051        1,141,884  

Willdan Group, Inc.(a)(b)

     300        7,398  
    

 

 

  
     6,803,761  
Real Estate Management & Development — 0.1%  

Alexander & Baldwin, Inc.

     2,923        34,550  

Altisource Portfolio Solutions SA(a)

     294        3,948  

CareTrust REIT, Inc.

     3,409        61,430  

CBRE Group, Inc., Class A(a)(b)

     12,728        557,614  

CTO Realty Growth, Inc.

     88        3,488  

Cushman & Wakefield PLC(a)(b)

     4,042        43,249  

Essential Properties Realty Trust, Inc.

     3,145        50,634  

eXp World Holdings, Inc.(a)

     1,001        19,890  

Forestar Group, Inc.(a)

     1,192        20,634  

FRP Holdings, Inc.(a)

     186        7,276  
 

 

 

64  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (continued)

July 31, 2020

   

iShares Total U.S. Stock Market Index Fund

(Percentages shown are based on Net Assets)

 

Security   Shares      Value  
Real Estate Management & Development (continued)  

Global Medical REIT, Inc.

     1,485      $ 17,657  

Howard Hughes Corp.(a)

     1,628        86,593  

Jones Lang LaSalle, Inc.

     1,993        197,128  

Kennedy-Wilson Holdings, Inc.

     4,952        73,488  

Marcus & Millichap, Inc.(a)

     917        24,979  

Newmark Group, Inc., Class A

     5,556        22,613  

Rafael Holdings, Inc., Class B(a)

     432        6,035  

RE/MAX Holdings, Inc., Class A

     632        20,458  

Realogy Holdings Corp.

     5,026        45,536  

Redfin Corp.(a)

     3,650        151,767  

RMR Group, Inc., Class A

     541        15,559  

St. Joe Co.(a)

     1,480        30,503  

Stratus Properties, Inc.(a)

     132        2,521  

Tejon Ranch Co.(a)

     507        7,275  
    

 

 

  
     1,504,825  
Road & Rail — 1.1%  

AMERCO

     344        109,299  

ArcBest Corp.

     886        26,925  

Avis Budget Group, Inc.(a)

     2,004        51,903  

Covenant Logistics Group, Inc., Class A(a)

     245        4,128  

CSX Corp.

     29,106        2,076,422  

Daseke, Inc.(a)(b)

     1,090        4,545  

Heartland Express, Inc.

     1,712        34,728  

Hertz Global Holdings, Inc.(a)

     3,656        5,301  

JB Hunt Transport Services, Inc.

     3,168        409,939  

Kansas City Southern

     3,667        630,174  

Knight-Swift Transportation Holdings, Inc.

     4,730        205,708  

Landstar System, Inc.

     1,505        183,279  

Lyft, Inc., Class A(a)

     9,182        268,390  

Marten Transport Ltd.

     1,272        33,861  

Norfolk Southern Corp.

     9,838        1,890,962  

Old Dominion Freight Line, Inc.

     3,734        682,650  

Ryder System, Inc.

     1,915        70,146  

Saia, Inc.(a)

     991        118,375  

Schneider National, Inc., Class B

     2,360        59,307  

Uber Technologies, Inc.(a)

     52,254        1,581,206  

Union Pacific Corp.

     25,962        4,500,513  

Universal Logistics Holdings, Inc.

     345        6,338  

US Xpress Enterprises, Inc., Class A(a)

     1,385        12,687  

Werner Enterprises, Inc.

     2,422        106,532  
    

 

 

  
     13,073,318  
Semiconductors & Semiconductor Equipment — 4.4%  

Advanced Energy Industries, Inc.(a)

     1,561        114,843  

Advanced Micro Devices, Inc.(a)

     44,592        3,452,759  

Alpha & Omega Semiconductor Ltd.(a)

     344        3,746  

Ambarella, Inc.(a)

     1,270        57,506  

Amkor Technology, Inc.(a)

     3,598        48,915  

Analog Devices, Inc.

     14,032        1,611,575  

Applied Materials, Inc.

     35,137        2,260,363  

Axcelis Technologies, Inc.(a)

     1,025        30,156  

AXT, Inc.(a)

     1,214        5,815  

Broadcom, Inc.

     14,917        4,724,960  

Brooks Automation, Inc.

     2,704        147,233  

Cabot Microelectronics Corp.

     1,131        170,464  

CEVA, Inc.(a)

     893        35,899  

Cirrus Logic, Inc.(a)

     2,150        147,340  

Cohu, Inc.

     1,255        23,632  

Cree, Inc.(a)

     4,162        286,845  

CyberOptics Corp.(a)

     375        14,756  

Diodes, Inc.(a)

     1,521        78,255  

DSP Group, Inc.(a)

     1,034        15,355  

Enphase Energy, Inc.(a)(b)

     4,040        243,854  

Entegris, Inc.

     5,074        364,871  

First Solar, Inc.(a)

     3,299        196,455  
Security   Shares      Value  
Semiconductors & Semiconductor Equipment (continued)  

FormFactor, Inc.(a)

     3,440      $ 99,210  

Ichor Holdings Ltd.(a)

     969        31,803  

Impinj, Inc.(a)(b)

     724        17,086  

Inphi Corp.(a)

     1,819        237,671  

Intel Corp.

     162,192        7,741,424  

KLA Corp.

     5,945        1,187,989  

Lam Research Corp.

     5,536        2,087,958  

Lattice Semiconductor Corp.(a)

     4,905        152,496  

MACOM Technology Solutions Holdings, Inc.(a)

     1,744        73,701  

Marvell Technology Group Ltd.

     25,151        917,257  

Maxim Integrated Products, Inc.

     10,123        689,275  

MaxLinear, Inc.(a)

     2,605        66,037  

Microchip Technology, Inc.

     8,976        913,128  

Micron Technology, Inc.(a)

     42,516        2,128,138  

MKS Instruments, Inc.

     2,081        265,203  

Monolithic Power Systems, Inc.

     1,664        440,977  

NeoPhotonics Corp.(a)

     1,665        15,168  

NVE Corp.

     172        9,329  

NVIDIA Corp.

     22,576        9,585,544  

ON Semiconductor Corp.(a)

     15,807        325,624  

Onto Innovation, Inc.(a)

     1,653        62,516  

PDF Solutions, Inc.(a)

     1,754        43,113  

Photronics, Inc.(a)

     2,227        26,457  

Power Integrations, Inc.

     1,154        140,823  

Qorvo, Inc.(a)

     4,431        567,833  

QUALCOMM, Inc.

     43,052        4,546,722  

Rambus, Inc.(a)

     4,883        72,073  

Semtech Corp.(a)

     2,463        137,263  

Silicon Laboratories, Inc.(a)

     1,662        167,048  

SiTime Corp.(a)

     245        13,022  

Skyworks Solutions, Inc.

     6,362        926,180  

SMART Global Holdings, Inc.(a)

     330        9,204  

SolarEdge Technologies, Inc.(a)

     1,860        325,686  

SunPower Corp.(a)(b)

     2,301        21,468  

Teradyne, Inc.

     6,302        560,626  

Texas Instruments, Inc.

     35,090        4,475,729  

Ultra Clean Holdings, Inc.(a)

     1,678        50,491  

Veeco Instruments, Inc.(a)

     1,822        24,633  

Xilinx, Inc.

     9,352        1,003,937  
    

 

 

  
     54,195,439  
Software — 9.3%  

A10 Networks, Inc.(a)

     3,291        26,591  

ACI Worldwide, Inc.(a)

     4,550        121,895  

Adobe, Inc.(a)

     18,381        8,167,046  

Alarm.com Holdings, Inc.(a)

     1,741        121,940  

Altair Engineering, Inc., Class A(a)

     1,683        67,825  

Alteryx, Inc., Class A(a)(b)

     1,998        350,629  

American Software, Inc., Class A

     1,641        27,027  

Anaplan, Inc.(a)

     5,013        227,640  

ANSYS, Inc.(a)

     3,269        1,015,351  

Appfolio, Inc., Class A(a)

     629        87,569  

Appian Corp.(a)(b)

     1,357        69,031  

Aspen Technology, Inc.(a)

     2,622        255,016  

Asure Software, Inc.(a)

     374        2,412  

Atlassian Corp. PLC, Class A(a)

     4,765        841,737  

Autodesk, Inc.(a)

     8,408        1,987,903  

Avalara, Inc.(a)

     2,913        391,653  

Avaya Holdings Corp.(a)

     4,020        50,893  

Benefitfocus, Inc.(a)

     1,165        13,642  

Bill.Com Holdings, Inc.(a)

     618        57,542  

Blackbaud, Inc.

     1,795        112,259  

Blackline, Inc.(a)(b)

     1,881        167,240  

Bottomline Technologies DE, Inc.(a)

     1,643        79,291  

Box, Inc., Class A(a)

     5,702        102,351  

Cadence Design Systems, Inc.(a)

     10,544        1,151,932  
 

 

 

SCHEDULES OF INVESTMENTS

   65

Schedule of Investments  (continued)

July 31, 2020

   

iShares Total U.S. Stock Market Index Fund

(Percentages shown are based on Net Assets)

 

Security   Shares      Value  
Software (continued)  

CDK Global, Inc.

     4,564      $ 207,479  

Cerence, Inc.(a)

     1,269        50,329  

Ceridian HCM Holding, Inc.(a)

     4,051        317,153  

ChannelAdvisor Corp.(a)

     878        17,885  

Citrix Systems, Inc.

     4,704        671,543  

Cloudera, Inc.(a)

     7,839        88,346  

Cloudflare, Inc., Class A(a)

     4,150        172,723  

CommVault Systems, Inc.(a)

     1,545        68,104  

Cornerstone OnDemand, Inc.(a)

     2,151        76,382  

Coupa Software, Inc.(a)

     2,527        774,399  

Crowdstrike Holdings, Inc., Class A(a)

     4,399        497,967  

Datadog, Inc., Class A(a)

     5,813        545,608  

Digimarc Corp.(a)

     495        6,960  

Digital Turbine, Inc.(a)

     3,249        45,096  

DocuSign, Inc.(a)

     6,717        1,456,447  

Domo, Inc., Class B(a)

     1,133        36,460  

Dropbox, Inc., Class A(a)

     9,423        214,373  

Dynatrace, Inc.(a)

     5,793        242,321  

Ebix, Inc.

     762        16,806  

eGain Corp.(a)(b)

     724        7,175  

Elastic NV(a)

     2,032        195,458  

Envestnet, Inc.(a)

     2,062        167,434  

Everbridge, Inc.(a)

     1,350        192,780  

Fair Isaac Corp.(a)

     1,083        475,643  

FireEye, Inc.(a)

     8,967        135,402  

Five9, Inc.(a)

     2,300        277,886  

ForeScout Technologies, Inc.(a)(b)

     1,561        45,253  

Fortinet, Inc.(a)

     5,087        703,532  

Globant SA(a)

     1,364        235,890  

GTY Technology Holdings, Inc.(a)(b)

     2,386        7,755  

Guidewire Software, Inc.(a)

     3,191        375,453  

HubSpot, Inc.(a)

     1,574        369,276  

Intelligent Systems Corp.(a)

     318        9,642  

Intuit, Inc.

     9,637        2,952,488  

j2 Global, Inc.(a)

     1,844        104,592  

LivePerson, Inc.(a)

     2,257        97,006  

LogMeIn, Inc.

     1,882        161,494  

Manhattan Associates, Inc.(a)

     2,382        228,172  

Medallia, Inc.(a)

     3,171        97,445  

Microsoft Corp.

     286,483        58,731,880  

MicroStrategy, Inc., Class A(a)

     315        39,035  

Mimecast Ltd.(a)(b)

     2,193        102,917  

Mitek Systems, Inc.(a)

     1,307        13,410  

MobileIron, Inc.(a)(b)

     2,756        17,170  

Model N, Inc.(a)

     1,370        52,690  

NetScout Systems, Inc.(a)

     2,601        66,221  

New Relic, Inc.(a)

     1,996        141,536  

NortonLifeLock, Inc.

     21,412        459,287  

Nuance Communications, Inc.(a)

     10,947        299,400  

Nutanix, Inc., Class A(a)(b)

     6,753        149,849  

OneSpan, Inc.(a)

     1,431        44,561  

Oracle Corp.

     75,530        4,188,138  

PagerDuty, Inc.(a)

     2,748        83,759  

Palo Alto Networks, Inc.(a)

     3,738        956,629  

Paycom Software, Inc.(a)

     1,880        534,616  

Pegasystems, Inc.

     1,527        178,491  

Ping Identity Holding Corp.(a)

     842        28,931  

Pluralsight, Inc., Class A(a)

     3,812        80,700  

Progress Software Corp.

     1,568        54,660  

Proofpoint, Inc.(a)

     2,146        248,228  

PROS Holdings, Inc.(a)

     1,606        52,404  

PTC, Inc.(a)

     3,994        341,727  

Q2 Holdings, Inc.(a)(b)

     1,896        178,319  

QAD, Inc., Class A

     286        11,300  

Qualys, Inc.(a)(b)

     1,282        158,301  
Security   Shares      Value  
Software (continued)  

Rapid7, Inc.(a)

     2,002      $ 119,259  

RealPage, Inc.(a)

     3,347        210,894  

RingCentral, Inc., Class A(a)

     2,914        845,847  

Rosetta Stone, Inc.(a)

     562        15,045  

SailPoint Technologies Holding, Inc.(a)

     3,564        112,266  

salesforce.com, Inc.(a)

     33,100        6,449,535  

Sapiens International Corp. NV

     1,182        36,122  

Seachange International, Inc.(a)

     875        1,374  

SecureWorks Corp., Class A(a)(b)

     607        7,260  

ServiceNow, Inc.(a)

     7,259        3,188,153  

ShotSpotter, Inc.(a)

     218        5,023  

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

     14,345        423,895  

Smartsheet, Inc., Class A(a)

     4,230        201,940  

SolarWinds Corp.(a)(b)

     1,701        31,230  

Splunk, Inc., Class A(a)

     6,065        1,272,558  

Sprout Social, Inc., Class A(a)

     415        11,989  

SPS Commerce, Inc.(a)

     1,402        105,388  

SS&C Technologies Holdings, Inc.

     8,639        496,742  

SVMK, Inc.(a)

     4,616        110,692  

Synchronoss Technologies, Inc.(a)(b)

     1,198        3,953  

Synopsys, Inc.(a)

     5,702        1,135,952  

Telenav, Inc.(a)

     760        3,941  

Tenable Holdings, Inc.(a)

     2,589        87,845  

Trade Desk, Inc., Class A(a)

     1,545        697,289  

Tyler Technologies, Inc.(a)

     1,499        535,518  

Upland Software, Inc.(a)

     909        31,288  

Varonis Systems, Inc.(a)

     1,139        123,411  

Verint Systems, Inc.(a)

     2,702        121,293  

Veritone, Inc.(a)(b)

     1,045        11,829  

VirnetX Holding Corp.

     2,642        13,659  

VMware, Inc., Class A(a)

     3,018        423,154  

Workday, Inc., Class A(a)

     6,540        1,183,217  

Workiva, Inc.(a)

     1,633        91,285  

Xperi Holding Corp.

     4,056        74,793  

Yext, Inc.(a)

     4,239        71,300  

Zendesk, Inc.(a)(b)

     4,278        389,940  

Zix Corp.(a)

     2,268        16,137  

Zoom Video Communications, Inc., Class A(a)

     6,383        1,620,708  

Zscaler, Inc.(a)

     2,681        348,128  

Zuora, Inc., Class A(a)

     4,368        50,844  

Zynga, Inc., Class A(a)

     33,970        333,925  
    

 

 

  
     116,071,352  
Specialty Retail — 2.3%  

Aaron’s, Inc.

     2,640        137,755  

Abercrombie & Fitch Co., Class A

     2,479        23,873  

Advance Auto Parts, Inc.

     2,555        383,608  

America’s Car-Mart, Inc.(a)

     281        26,740  

American Eagle Outfitters, Inc.

     6,018        60,180  

Asbury Automotive Group, Inc.(a)

     735        73,610  

AutoNation, Inc.(a)

     2,391        122,754  

AutoZone, Inc.(a)

     894        1,079,433  

Bed Bath & Beyond, Inc.

     5,318        57,541  

Best Buy Co., Inc.

     8,741        870,516  

Boot Barn Holdings, Inc.(a)

     1,034        20,018  

Buckle, Inc.

     884        14,171  

Burlington Stores, Inc.(a)

     2,510        471,880  

Caleres, Inc.

     1,279        8,071  

CarMax, Inc.(a)

     6,206        601,796  

Carvana Co.(a)

     2,080        322,296  

Cato Corp., Class A

     507        3,645  

Chico’s FAS, Inc.

     3,622        4,600  

Children’s Place, Inc.

     603        14,719  

Citi Trends, Inc.

     277        4,770  

Conn’s, Inc.(a)

     641        6,384  

Container Store Group, Inc.(a)

     1,057        3,647  
 

 

 

66  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (continued)

July 31, 2020

   

iShares Total U.S. Stock Market Index Fund

(Percentages shown are based on Net Assets)

 

Security   Shares      Value  
Specialty Retail (continued)  

Designer Brands, Inc., Class A

     1,907      $ 11,270  

Dick’s Sporting Goods, Inc.

     2,223        101,413  

Express, Inc.(a)

     2,627        2,653  

Five Below, Inc.(a)

     2,140        233,067  

Floor & Decor Holdings, Inc., Class A(a)

     3,084        203,236  

Foot Locker, Inc.

     3,812        112,035  

GameStop Corp., Class A(a)

     3,236        12,976  

Gap, Inc.

     7,032        94,018  

Genesco, Inc.(a)

     625        9,719  

Group 1 Automotive, Inc.

     663        55,705  

GrowGeneration Corp.(a)

     1,677        14,154  

Guess?, Inc.

     1,837        18,995  

Haverty Furniture Cos., Inc.

     502        7,138  

Hibbett Sports, Inc.(a)

     425        9,856  

Home Depot, Inc.

     41,096        10,910,577  

Hudson Ltd., Class A(a)

     1,455        6,373  

L Brands, Inc.

     9,075        221,521  

Lithia Motors, Inc., Class A

     810        185,612  

Lowe’s Cos., Inc.

     28,911        4,305,137  

Lumber Liquidators Holdings, Inc.(a)

     1,004        22,409  

MarineMax, Inc.(a)

     887        24,605  

Michaels Cos., Inc.(a)(b)

     3,451        24,778  

Monro, Inc.

     1,209        68,067  

Murphy USA, Inc.(a)

     1,084        143,532  

National Vision Holdings, Inc.(a)(b)

     3,057        97,793  

O’Reilly Automotive, Inc.(a)

     2,803        1,338,096  

ODP Corp.

     2,168        47,848  

Penske Automotive Group, Inc.

     1,347        60,373  

Rent-A-Center, Inc.

     1,710        49,453  

RH(a)

     617        177,344  

Ross Stores, Inc.

     13,385        1,200,233  

Sally Beauty Holdings, Inc.(a)(b)

     4,389        50,956  

Shoe Carnival, Inc.

     372        9,133  

Signet Jewelers Ltd.

     1,788        19,203  

Sleep Number Corp.(a)

     1,074        49,941  

Sonic Automotive, Inc., Class A

     808        30,801  

Sportsman’s Warehouse Holdings, Inc.(a)

     1,930        31,054  

Systemax, Inc.

     366        8,202  

Tiffany & Co.

     4,619        579,038  

Tilly’s, Inc., Class A

     598        3,594  

TJX Cos., Inc.

     45,874        2,384,989  

Tractor Supply Co.

     4,425        631,625  

Ulta Beauty, Inc.(a)

     2,041        393,893  

Urban Outfitters, Inc.(a)

     2,358        39,001  

Williams-Sonoma, Inc.

     3,022        263,277  

Winmark Corp.

     85        13,513  

Zumiez, Inc.(a)

     980        22,638  
    

 

 

  
     28,612,851  
Technology Hardware, Storage & Peripherals — 5.6%  

3D Systems Corp.(a)

     5,730        37,761  

Apple, Inc.

     156,465        66,503,884  

Avid Technology, Inc.(a)

     592        4,872  

Dell Technologies, Inc., Class C(a)

     5,844        349,646  

Diebold Nixdorf, Inc.(a)

     2,781        19,384  

Hewlett Packard Enterprise Co.

     50,804        501,435  

HP, Inc.

     54,873        964,667  

Immersion Corp.(a)

     1,186        8,005  

NCR Corp.(a)

     4,662        85,921  

NetApp, Inc.

     8,672        384,170  

Pure Storage, Inc., Class A(a)

     9,402        167,920  

Super Micro Computer, Inc.(a)

     1,968        59,640  

Synaptics, Inc.(a)

     1,413        113,068  

Western Digital Corp.

     11,412        491,857  

Xerox Holdings Corp.(a)

     7,163        119,264  
    

 

 

  
     69,811,494  
Security   Shares      Value  
Textiles, Apparel & Luxury Goods — 0.7%  

Capri Holdings Ltd.(a)

     5,139      $ 76,982  

Carter’s, Inc.

     1,695        133,430  

Columbia Sportswear Co.

     1,102        83,576  

Crocs, Inc.(a)

     2,528        90,856  

Deckers Outdoor Corp.(a)

     1,096        229,338  

Fossil Group, Inc.(a)(b)

     1,424        4,714  

G-III Apparel Group Ltd.(a)(b)

     1,462        14,459  

Hanesbrands, Inc.

     13,136        185,612  

Kontoor Brands, Inc.(a)

     1,656        31,729  

Lululemon Athletica, Inc.(a)

     4,338        1,412,409  

Movado Group, Inc.

     450        4,338  

NIKE, Inc., Class B

     46,289        4,518,269  

Oxford Industries, Inc.

     585        25,120  

PVH Corp.

     2,852        138,778  

Ralph Lauren Corp.

     1,924        137,181  

Rocky Brands, Inc.

     309        7,030  

Skechers U.S.A., Inc., Class A(a)

     5,082        148,801  

Steven Madden Ltd.

     3,544        75,062  

Tapestry, Inc.

     10,699        142,939  

Under Armour, Inc., Class A(a)

     6,763        71,147  

Under Armour, Inc., Class C(a)

     7,474        70,928  

Unifi, Inc.(a)

     322        3,851  

Vera Bradley, Inc.(a)

     696        3,052  

VF Corp.

     12,483        753,474  

Wolverine World Wide, Inc.

     2,847        68,442  
    

 

 

  
     8,431,517  
Thrifts & Mortgage Finance — 0.1%  

Axos Financial, Inc.(a)

     1,972        44,193  

Banc of California, Inc.

     1,360        14,579  

Berkshire Hills Bancorp, Inc.

     2,000        19,920  

Brookline Bancorp, Inc.

     2,260        21,685  

Capitol Federal Financial, Inc.

     5,759        55,574  

Columbia Financial, Inc.(a)

     2,444        29,401  

Dime Community Bancshares, Inc.

     995        11,686  

Essent Group Ltd.

     3,894        139,522  

Federal Agricultural Mortgage Corp., Class C

     263        15,651  

Flagstar Bancorp, Inc.

     1,465        45,972  

Flushing Financial Corp.

     756        8,376  

Greene County Bancorp, Inc.

     392        8,440  

Hingham Institution for Savings

     79        13,904  

Home Bancorp, Inc.

     190        4,442  

HomeStreet, Inc.

     977        25,832  

Kearny Financial Corp.

     3,052        24,538  

Ladder Capital Corp.

     4,671        36,294  

LendingTree, Inc.(a)

     312        108,043  

Merchants Bancorp

     405        7,464  

Meridian Bancorp, Inc.

     1,376        15,693  

Meta Financial Group, Inc.

     1,266        23,624  

MGIC Investment Corp.

     12,493        103,317  

Mr Cooper Group, Inc.(a)

     2,984        48,729  

New York Community Bancorp, Inc.

     17,538        184,675  

NMI Holdings, Inc., Class A(a)

     2,852        44,263  

Northfield Bancorp, Inc.

     1,190        11,436  

Northwest Bancshares, Inc.

     4,246        41,823  

OceanFirst Financial Corp.

     1,828        28,005  

PCSB Financial Corp.

     450        5,004  

PennyMac Financial Services, Inc.(g)

     1,748        84,358  

Premier Financial Corp.

     1,940        34,299  

Provident Bancorp, Inc.

     875        6,869  

Provident Financial Services, Inc.

     1,941        26,495  

Radian Group, Inc.

     7,445        111,079  

Southern Missouri Bancorp, Inc.

     347        7,568  

Sterling Bancorp, Inc.

     551        1,681  

Territorial Bancorp, Inc.

     536        11,776  
 

 

 

SCHEDULES OF INVESTMENTS

   67

Schedule of Investments  (continued)

July 31, 2020

   

iShares Total U.S. Stock Market Index Fund

(Percentages shown are based on Net Assets)

 

Security   Shares      Value  
Thrifts & Mortgage Finance (continued)  

TFS Financial Corp.

     1,463      $ 21,184  

Timberland Bancorp, Inc.

     434        7,230  

TrustCo Bank Corp. NY

     3,596        20,821  

Walker & Dunlop, Inc.

     1,172        59,081  

Washington Federal, Inc.

     3,037        70,884  

Waterstone Financial, Inc.

     804        12,285  

Western New England Bancorp, Inc.

     2,207        11,123  

WSFS Financial Corp.

     2,055        58,629  
    

 

 

  
     1,687,447  
Tobacco — 0.6%  

Altria Group, Inc.

     71,109        2,926,136  

Philip Morris International, Inc.

     59,491        4,569,504  

Turning Point Brands, Inc.

     273        8,976  

Universal Corp.

     807        34,023  

Vector Group Ltd.

     5,488        48,404  
    

 

 

  
     7,587,043  
Trading Companies & Distributors — 0.3%  

Air Lease Corp.

     4,187        109,783  

Applied Industrial Technologies, Inc.

     1,954        123,337  

Beacon Roofing Supply, Inc.(a)

     2,457        76,560  

BMC Stock Holdings, Inc.(a)

     2,469        63,206  

CAI International, Inc.(a)

     573        9,861  

DXP Enterprises, Inc.(a)

     556        9,385  

EVI Industries, Inc.(a)(b)

     262        6,623  

Fastenal Co.

     21,752        1,023,214  

Foundation Building Materials, Inc.(a)

     572        7,854  

GATX Corp.

     1,299        79,226  

GMS, Inc.(a)

     1,500        35,145  

H&E Equipment Services, Inc.

     1,091        19,191  

HD Supply Holdings, Inc.(a)

     6,172        216,637  

Herc Holdings, Inc.(a)

     760        25,490  

Kaman Corp.

     920        36,331  

Lawson Products, Inc.(a)

     255        7,619  

MRC Global, Inc.(a)

     2,394        14,244  

MSC Industrial Direct Co., Inc., Class A

     1,640        108,257  

NOW, Inc.(a)

     3,477        27,399  

Rush Enterprises, Inc., Class A

     823        39,158  

Rush Enterprises, Inc., Class B

     266        10,587  

SiteOne Landscape Supply, Inc.(a)(b)

     1,582        202,544  

Textainer Group Holdings Ltd.(a)(b)

     2,139        18,053  

Titan Machinery, Inc.(a)

     433        4,705  

Transcat, Inc.(a)

     348        9,709  

Triton International Ltd.

     2,060        64,828  

United Rentals, Inc.(a)

     2,752        427,578  

Univar Solutions, Inc.(a)

     6,925        122,365  

Veritiv Corp.(a)

     406        6,216  

W.W. Grainger, Inc.

     1,696        579,235  

Watsco, Inc.

     1,241        292,963  

WESCO International, Inc.(a)(b)

     1,974        76,729  
    

 

 

  
     3,854,032  
Transportation Infrastructure — 0.0%  

Macquarie Infrastructure Corp.

     2,631        78,825  
    

 

 

  
Water Utilities — 0.1%  

American States Water Co.

     1,437        110,476  

American Water Works Co., Inc.

     6,896        1,015,574  

Artesian Resources Corp., Class A

     493        17,294  

Cadiz, Inc.(a)

     459        4,875  

California Water Service Group

     1,870        87,647  

Consolidated Water Co. Ltd.

     1,363        16,724  

Essential Utilities, Inc.

     8,571        388,695  

Global Water Resources, Inc.

     881        9,154  

Middlesex Water Co.

     609        39,012  

SJW Group

     1,031        64,396  
Security   Shares      Value  
Water Utilities (continued)  

York Water Co.

     673      $ 31,167  
    

 

 

  
     1,785,014  
Wireless Telecommunication Services — 0.2%  

Boingo Wireless, Inc.(a)(b)

     1,697        24,522  

Gogo, Inc.(a)

     2,125        6,184  

Shenandoah Telecommunications Co.

     1,899        95,463  

Spok Holdings, Inc.

     353        3,537  

T-Mobile U.S., Inc.(a)

     20,281        2,177,774  

Telephone & Data Systems, Inc.

     3,846        74,689  

United States Cellular Corp.(a)

     438        12,995  
    

 

 

  
     2,395,164  
    

 

 

  

Total Common Stocks — 99.2%
(Cost — $881,432,275)

 

      1,231,877,620  
    

 

 

  

Investment Companies — 0.4%

 

Equity Funds — 0.4%  

iShares Russell 3000 ETF(g)

     25,873        4,927,513  
    

 

 

  

Total Investment Companies — 0.4%
(Cost — $4,017,925)

 

      4,927,513  
    

 

 

  

Warrants — 0.0%

 

Oil, Gas & Consumable Fuels — 0.0%  

Occidental Petroleum Corp., (Expires 8/3/27)(a)

     3,888        21,772  
    

 

 

  

Total Warrants — 0.0%
(Cost — $—)

 

      21,772  
    

 

 

  

Total Long-Term Investments — 99.6%
(Cost — $885,450,200)

 

      1,236,826,905  
    

 

 

  

Short-Term Securities — 1.6%

 

BlackRock Cash Funds: Institutional,
SL Agency Shares,

     

0.43%(e)(f)(g)

     15,875,676        15,893,139  

BlackRock Cash Funds: Treasury,
SL Agency Shares,

     

0.15%(e)(g)

     3,994,749        3,994,749  
    

 

 

  

Total Short-Term Securities — 1.6%
(Cost — $19,865,601)

 

      19,887,888  
    

 

 

  

Total Investments — 101.2%
(Cost — $905,315,801)

 

      1,256,714,793  

Liabilities in Excess of Other Assets — (1.2)%

 

      (14,668,021 ) 
    

 

 

  

Net Assets — 100.0%

 

    $ 1,242,046,772  
    

 

 

  

 

(a) 

Non-income producing security.

(b) 

Security, or a portion of the security, is on loan.

(c) 

Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

(d) 

Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.

(e) 

Annualized 7-day yield as of period end.

(f) 

Security was purchased with the cash collateral from loaned securities.

 

 

 

68  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (continued)

July 31, 2020

   

iShares Total U.S. Stock Market Index Fund

 

(g) 

Investments in issuers considered to be an affiliate/affiliates of the Fund during the year ended July 31, 2020 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliated Issuer    Shares
Held at
07/31/19		      Shares
Purchased		      Shares Sold      Shares
Held at
07/31/20		      Value at
07/31/20		      Income     

Net

Realized
Gain (Loss) (a)

      Change in
Unrealized
Appreciation
(Depreciation)		  

BlackRock Cash Funds: Institutional, SL Agency Shares

      21,426,011        —        (5,550,335 )(b)       15,875,676      $ 15,893,139      $ 211,744 (c)     $ (6,769 )     $ 17,131  

BlackRock Cash Funds: Treasury, SL Agency Shares

      8,291,401        —        (4,296,652 )(b)       3,994,749        3,994,749        116,028        —        —  

BlackRock, Inc.

      4,316        1,554        (240 )       5,630        3,237,306        63,886        (11,142 )       554,969  

PennyMac Financial Services, Inc.

      1,874        1,266        —        3,140        59,189        4,398        —        (9,728 ) 

PennyMac Mortgage Investment Trust

      —        1,748        —        1,748        84,358        —        —        10,497  

iShares Russell 3000 ETF

      27,474        314,449        (316,050 )       25,873        4,927,513        138,695        (849,760 )       604,797  
              

 

 

     

 

 

     

 

 

     

 

 

  
   $ 28,196,254      $ 534,751      $ (867,671 )     $ 1,177,666  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

  (a) 

Includes net capital gain distributions, if applicable.

 
  (b) 

Represents net shares 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.

 

For Fund compliance purposes, the Fund’s industry classifications refer to one or more of the industry sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such industry sub-classifications for reporting ease.

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

                  

Russell 2000 E-Mini Index

      9          09/18/20        $ 665        $ (1,778 ) 

S&P 500 E-Mini Index

      29          09/18/20          4,732          59,935  
                 

 

 

  
                  $ 58,157  
                 

 

 

  

Derivative Financial Instruments Categorized by Risk Exposure

As of year 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 contract(a)

    $ —      $ —      $ 59,935      $ —      $ —      $ —      $ 59,935  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Liabilities — Derivative Financial Instruments

                     

Futures contracts

                     

Unrealized depreciation on futures contract(a)

    $ —      $ —      $ 1,778      $ —      $ —      $ —      $ 1,778  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

  (a) 

Net cumulative unrealized appreciation (depreciation) on futures contracts and centrally cleared swaps, 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).

 

 

 

SCHEDULES OF INVESTMENTS

   69

Schedule of Investments  (continued)

July 31, 2020

   

iShares Total U.S. Stock Market Index Fund

 

For the year ended July 31, 2020, 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

    $ —      $ —      $ 1,326,642      $ —      $ —      $ —      $ 1,326,642  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Change in Unrealized Appreciation (Depreciation) on:

                     

Futures contracts

    $ —      $ —      $ 87,105      $ —      $ —      $ —      $ 87,105  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

 

Average notional value of contracts — long

    $ 10,053,593  

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 investments and derivative financial instruments. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments, refer to the Notes to Financial Statements.

The following tables summarize the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy:

 

      Level 1        Level 2        Level 3        Total  

Assets:

 

Investments:

 

Long-Term Investments:

 

Common Stocks

   $ 1,231,877,620        $ —        $ —        $ 1,231,877,620  

Investment Companies

     4,927,513          —          —          4,927,513  

Warrants

     21,772          —          —          21,772  

Short-Term Securities

     19,887,888          —          —          19,887,888  
  

 

 

       

 

 

       

 

 

       

 

 

  
   $ 1,256,714,793        $ —        $ —        $ 1,256,714,793  
  

 

 

       

 

 

       

 

 

       

 

 

  

Derivative Financial Instruments (a)

 

Assets:

 

Equity contracts

   $ 59,935        $ —        $ —        $ 59,935  

Liabilities:

 

Equity contracts

     (1,778 )         —          —          (1,778 ) 
  

 

 

       

 

 

       

 

 

       

 

 

  
   $ 58,157        $ —        $ —        $ 58,157  
  

 

 

       

 

 

       

 

 

       

 

 

  

The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.

 

  (a) 

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

 

See notes to financial statements.

 

 

70  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities

July 31, 2020

 

     iShares Russell
Mid-Cap
Index Fund		     

iShares Russell

Small/Mid-Cap
Index Fund

     

iShares Total U.S.

Stock Market

Index Fund

  

ASSETS

 

Investments at value — unaffiliated(a)(b)

   $ 1,193,597,552      $ 252,375,448      $ 1,228,518,539  

Investments at value — affiliated(c)

     35,098,285        27,781,108        28,196,254  

Cash

     60,325        281        188  

Cash pledged for futures contracts

     486,650        156,000        519,000  

Receivables:

 

Investments sold

     —        160,015        116,291  

Securities lending income — affiliated

     23,449        26,399        22,134  

Capital shares sold

     2,171,393        353,403        1,331,963  

Dividends — unaffiliated

     518,993        95,841        1,032,809  

Dividends — affiliated

     686        266        1,046  

From the Manager

     —        24,910        —  

Variation margin on futures contracts

     —        —        11,256  

Prepaid expenses

     47,413        42,343        46,978  
 

 

 

     

 

 

     

 

 

  

Total assets

     1,232,004,746        281,016,014        1,259,796,458  
 

 

 

     

 

 

     

 

 

  

LIABILITIES

 

Cash collateral on securities loaned at value

     28,495,159        23,586,954        15,880,167  

Payables:

 

Capital shares redeemed

     2,085,505        285,070        1,697,722  

Investment advisory fees

     19,534        —        8,781  

Directors’ and Officer’s fees

     5,412        3,263        5,476  

Other accrued expenses

     172,716        104,106        122,177  

Recoupment of past waived fees

     10,719        —        63  

Service fees

     18,824        11,107        22,855  

Variation margin on futures contracts

     41,213        10,932        12,445  
 

 

 

     

 

 

     

 

 

  

Total liabilities

     30,849,082        24,001,432        17,749,686  
 

 

 

     

 

 

     

 

 

  

NET ASSETS

   $ 1,201,155,664      $ 257,014,582      $ 1,242,046,772  
 

 

 

     

 

 

     

 

 

  

NET ASSETS CONSIST OF

 

Paid-in capital

   $ 980,793,526      $ 236,616,058      $ 906,973,366  

Accumulated earnings

     220,362,138        20,398,524        335,073,406  
 

 

 

     

 

 

     

 

 

  

NET ASSETS

   $ 1,201,155,664      $ 257,014,582      $ 1,242,046,772  
 

 

 

     

 

 

     

 

 

  

(a) Investments at cost — unaffiliated

   $ 946,470,112      $ 232,171,752      $ 878,945,499  

(b) Securities loaned at value

   $ 27,822,212      $ 22,854,269      $ 15,416,141  

(c) Investments at cost — affiliated

   $ 33,833,003      $ 27,481,705      $ 26,370,302  

See notes to financial statements.

 

 

FINANCIAL STATEMENTS

   71

Statements of Assets and Liabilities  (continued)

July 31, 2020

 

     iShares Russell
Mid-Cap
Index Fund		     

iShares Russell

Small/Mid-Cap
Index Fund

     

iShares Total U.S.

Stock Market

Index Fund

  

NET ASSET VALUE

 

Institutional  

Net assets

   $ 170,549,816      $ 58,679,655      $ 84,117,222  
 

 

 

     

 

 

     

 

 

  

Shares outstanding(d)

     15,863,451        4,821,426        5,493,459  
 

 

 

     

 

 

     

 

 

  

Net asset value

   $ 10.75      $ 12.17      $ 15.31  
 

 

 

     

 

 

     

 

 

  
Investor A  

Net assets

   $ 93,113,107      $ 55,521,916      $ 114,361,833  
 

 

 

     

 

 

     

 

 

  

Shares outstanding(d)

     8,693,083        4,569,476        7,477,718  
 

 

 

     

 

 

     

 

 

  

Net asset value

   $ 10.71      $ 12.15      $ 15.29  
 

 

 

     

 

 

     

 

 

  
Class K  

Net assets

   $ 937,492,741      $ 142,813,011      $ 1,043,567,717  
 

 

 

     

 

 

     

 

 

  

Shares outstanding(d)

     87,023,906        11,734,850        68,154,064  
 

 

 

     

 

 

     

 

 

  

Net asset value

   $ 10.77      $ 12.17      $ 15.31  
 

 

 

     

 

 

     

 

 

  

 

(d) 

Unlimited number of shares authorized, $0.001 par value.

See notes to financial statements.

 

 

72  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations

Year Ended July 31, 2020

 

    

iShares Russell

Mid-Cap

Index Fund

    

iShares Russell

Small/Mid-Cap

Index Fund

    

iShares Total U.S.

Stock Market

Index Fund

  

INVESTMENT INCOME

 

Dividends — unaffiliated

   $ 20,278,822     $ 3,012,772     $ 20,084,513  

Dividends — affiliated

     323,963       50,700       323,007  

Securities lending income — affiliated — net

     281,581       218,724       211,744  

Foreign taxes withheld

     (2,259 )      (1,618 )      (1,242 ) 
 

 

 

    

 

 

    

 

 

  

Total investment income

     20,882,107       3,280,578       20,618,022  
 

 

 

    

 

 

    

 

 

  

EXPENSES

 

Transfer agent — class specific

     300,121       27,369       85,627  

Service and distribution — class specific

     239,359       88,217       237,667  

Investment advisory

     230,156       63,363       110,260  

Registration

     125,988       65,148       76,040  

Professional

     103,952       76,702       87,273  

Custodian

     55,598       52,523       63,566  

Printing

     46,787       32,083       45,409  

Recoupment of past waived and/or reimbursed fees

     27,922       —       —  

Directors and Officer

     22,220       12,157       21,988  

Accounting services

     9,463       9,463       9,463  

Recoupment of past waived and/or reimbursed fees — class specific

     7,857       94       63  

Miscellaneous

     25,266       15,513       25,630  
 

 

 

    

 

 

    

 

 

  

Total expenses

     1,194,689       442,632       762,986  

Less:

 

Fees waived and/or reimbursed by the Manager

     (9,525 )      (179,047 )      (108,796 ) 

Transfer agent fees waived and/or reimbursed — class specific

     (44,885 )      (3,871 )      (21,000 ) 
 

 

 

    

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed

     1,140,279       259,714       633,190  
 

 

 

    

 

 

    

 

 

  

Net investment income

     19,741,828       3,020,864       19,984,832  
 

 

 

    

 

 

    

 

 

  

REALIZED AND UNREALIZED GAIN (LOSS)

 

Net realized gain (loss) from:

 

Investments — unaffiliated

     (5,718,026 )      4,474,705       (3,291,720 ) 

Investments — affiliated

     (948,380 )      (388,760 )      (867,671 ) 

Futures contracts

     235,582       (807,463 )      1,326,642  
 

 

 

    

 

 

    

 

 

  
    (6,430,824 )      3,278,482       (2,832,749 ) 
 

 

 

    

 

 

    

 

 

  

Net change in unrealized appreciation (depreciation) on:

      

Futures contracts

     98,470       2,898       87,105  

Investments — affiliated

     987,971       254,212       1,177,666  

Investments — unaffiliated

     35,282       (3,329,885 )      107,270,596  
 

 

 

    

 

 

    

 

 

  
    1,121,723       (3,072,775 )      108,535,367  
 

 

 

    

 

 

    

 

 

  

Net realized and unrealized gain (loss)

     (5,309,101 )      205,707       105,702,618  
 

 

 

    

 

 

    

 

 

  

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS

   $ 14,432,727     $ 3,226,571     $ 125,687,450  
 

 

 

    

 

 

    

 

 

  

See notes to financial statements.

 

 

FINANCIAL STATEMENTS

   73

Statements of Changes in Net Assets

 

    iShares Russell Mid-Cap
Index Fund		     iShares Russell Small/Mid-Cap
Index Fund		  
    Year Ended July 31,     Year Ended July 31,  
     2020     2019     2020     2019  

INCREASE (DECREASE) IN NET ASSETS

        

OPERATIONS

        

Net investment income

   $ 19,741,828     $ 16,019,938     $ 3,020,864     $ 2,637,781  

Net realized gain (loss)

     (6,430,824 )      20,467,433       3,278,482       1,261,753  

Net change in unrealized appreciation (depreciation)

     1,121,723       39,297,084       (3,072,775 )      3,419,262  
 

 

 

    

 

 

    

 

 

    

 

 

  

Net increase in net assets resulting from operations

     14,432,727       75,784,455       3,226,571       7,318,796  
 

 

 

    

 

 

    

 

 

    

 

 

  

DISTRIBUTIONS TO SHAREHOLDERS(a)

        

Institutional

     (8,843,077 )      (7,547,431 )      (514,135 )      (509,276 ) 

Investor A

     (3,674,083 )      (4,643,550 )      (805,481 )      (1,194,658 ) 

Class K

     (34,859,826 )      (22,934,385 )      (4,253,492 )      (5,909,718 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Decrease in net assets resulting from distributions to shareholders

     (47,376,986 )      (35,125,366 )      (5,573,108 )      (7,613,652 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

CAPITAL SHARE TRANSACTIONS

        

Net increase in net assets derived from capital share transactions

     100,552,839       303,522,663       62,630,708       70,510,281  
 

 

 

    

 

 

    

 

 

    

 

 

  

NET ASSETS

        

Total increase in net assets

     67,608,580       344,181,752       60,284,171       70,215,425  

Beginning of year

     1,133,547,084       789,365,332       196,730,411       126,514,986  
 

 

 

    

 

 

    

 

 

    

 

 

  

End of year

   $ 1,201,155,664     $ 1,133,547,084     $ 257,014,582     $ 196,730,411  
 

 

 

    

 

 

    

 

 

    

 

 

  

 

(a) 

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

See notes to financial statements.

 

 

74  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets  (continued)

 

    iShares Total U.S. Stock Market
Index Fund		  
    Year Ended July 31,  
     2020     2019  

INCREASE (DECREASE) IN NET ASSETS

    

OPERATIONS

    

Net investment income

   $ 19,984,832     $ 17,962,712  

Net realized loss

     (2,832,749 )      (5,600,997 ) 

Net change in unrealized appreciation (depreciation)

     108,535,367       64,283,000  
 

 

 

    

 

 

  

Net increase in net assets resulting from operations

     125,687,450       76,644,715  
 

 

 

    

 

 

  

DISTRIBUTIONS TO SHAREHOLDERS(a)

    

Institutional

     (1,945,677 )      (1,933,025 ) 

Investor A

     (1,890,980 )      (1,682,526 ) 

Class K

     (20,902,862 )      (18,400,730 ) 
 

 

 

    

 

 

  

Decrease in net assets resulting from distributions to shareholders

     (24,739,519 )      (22,016,281 ) 
 

 

 

    

 

 

  

CAPITAL SHARE TRANSACTIONS

    

Net increase in net assets derived from capital share transactions

     52,045,326       116,694,861  
 

 

 

    

 

 

  

NET ASSETS

    

Total increase in net assets

     152,993,257       171,323,295  

Beginning of year

     1,089,053,515       917,730,220  
 

 

 

    

 

 

  

End of year

   $ 1,242,046,772     $ 1,089,053,515  
 

 

 

    

 

 

  

 

(a) 

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

See notes to financial statements.

 

 

FINANCIAL STATEMENTS

   75

Financial Highlights

(For a share outstanding throughout each period)

 

    iShares Russell Mid-Cap Index Fund  
    Institutional  
    Year Ended July 31,  
    2020      2019      2018     2017      2016  
           

Net asset value, beginning of year

   $ 10.98      $ 10.70      $ 11.26     $ 10.22      $ 9.94  
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Net investment income(a)

     0.19        0.17        0.16       0.16        0.18  

Net realized and unrealized gain

     0.02        0.50        1.22       1.14        0.24  
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Net increase from investment operations

     0.21        0.67        1.38       1.30        0.42  
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Distributions(b)

 

From net investment income

     (0.17 )       (0.17 )       (0.18 )      (0.23 )       (0.13 ) 

From net realized gain

     (0.27 )       (0.22 )       (1.76 )      (0.03 )       (0.01 ) 
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Total distributions

     (0.44 )       (0.39 )       (1.94 )      (0.26 )       (0.14 ) 
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Net asset value, end of year

   $ 10.75      $ 10.98      $ 10.70     $ 11.26      $ 10.22  
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Total Return(c)

 

Based on net asset value

     1.96 %       6.76 %       13.29 %(d)      12.91 %       4.35 % 
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Ratios to Average Net Assets

 

Total expenses

     0.10 %       0.12 %       0.13 %      0.23 %       0.13 %(e) 
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Total expenses excluding recoupment of past fees waived and/or reimbursed

     0.09 %       0.05 %       0.09 %      0.20 %       0.13 %(e) 
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Total expenses after fees waived and/or reimbursed

     0.10 %       0.12 %       0.11 %      0.12 %       0.06 %(e) 
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Net investment income

     1.77 %       1.66 %       1.46 %      1.52 %       1.87 %(e) 
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Supplemental Data

 

Net assets, end of year (000)

   $ 170,550      $ 244,272      $ 174,840     $ 366,684      $ 191,337  
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Portfolio turnover rate

     26 %       25 %       75 %      41 %       24 % 
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

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

(c) 

Where applicable, assumes the reinvestment of distributions.

(d) 

Includes payment received from an affiliate, which had no impact on the Fund’s total return.

(e) 

Excludes 0.01% of expenses incurred indirectly as a result of investments in underlying funds.

See notes to financial statements.

 

 

76  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights  (continued)

(For a share outstanding throughout each period)

 

    iShares Russell Mid-Cap Index Fund (continued)  
    Investor A  
    Year Ended July 31,          

Period from

11/30/15 (a)

to 07/31/16

  
    2020      2019      2018     2017        
             

Net asset value, beginning of period

   $ 10.93      $ 10.66      $ 11.24     $ 10.20       $ 9.66  
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Net investment income(b)

     0.15        0.17        0.12       0.13         0.07  

Net realized and unrealized gain

     0.04        0.47        1.22       1.16         0.60  
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Net increase from investment operations

     0.19        0.64        1.34       1.29         0.67  
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Distributions(c)

 

From net investment income

     (0.14 )       (0.15 )       (0.16 )      (0.22 )        (0.12 ) 

From net realized gain

     (0.27 )       (0.22 )       (1.76 )      (0.03 )        (0.01 ) 
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Total distributions

     (0.41 )       (0.37 )       (1.92 )      (0.25 )        (0.13 ) 
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Net asset value, end of period

   $ 10.71      $ 10.93      $ 10.66     $ 11.24       $ 10.20  
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Total Return(d)

 

Based on net asset value

     1.80 %       6.43 %       12.96 %(e)      12.78 %        7.07 %(f) 
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Ratios to Average Net Assets

 

Total expenses

     0.36 %       0.34 %       0.35 %      0.34 %        0.34 %(g)(h)(i) 
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Total expenses excluding recoupment of past fees waived and/or reimbursed

     0.35 %       0.33 %       0.35 %      0.34 %        0.34 %(g)(h)(i) 
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Total expenses after fees waived and/or reimbursed

     0.35 %       0.33 %       0.34 %      0.33 %        0.33 %(g)(i) 
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Net investment income

     1.48 %       1.64 %       1.11 %      1.17 %        1.06 %(g)(i) 
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Supplemental Data

 

Net assets, end of period (000)

   $ 93,113      $ 105,914      $ 203,933     $ 46,135       $ 6,669  
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Portfolio turnover rate

     26 %       25 %       75 %      41 %        24 % 
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

 

(a) 

Commencement of operations.

(b) 

Based on average shares outstanding.

(c) 

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

(d) 

Where applicable, assumes the reinvestment of distributions.

(e) 

Includes payment received from an affiliate, which had no impact on the Fund’s total return.

(f) 

Aggregate total return.

(g) 

Annualized.

(h) 

Offering costs were not annualized in the calculation of the expense ratio. If these expenses were annualized, the total expenses would have been 0.34%.

(i) 

Excludes 0.01% of expenses incurred indirectly as a result of investments in underlying funds.

See notes to financial statements.

 

 

FINANCIAL HIGHLIGHTS

   77

Financial Highlights  (continued)

(For a share outstanding throughout each period)

 

    iShares Russell Mid-Cap Index Fund (continued)  
    Class K  
    Year Ended July 31,  
    2020      2019      2018     2017      2016  
           

Net asset value, beginning of year

   $ 11.00      $ 10.72      $ 11.28     $ 10.23      $ 9.94  
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Net investment income(a)

     0.18        0.17        0.13       0.18        0.17  

Net realized and unrealized gain

     0.03        0.51        1.25       1.13        0.26  
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Net increase from investment operations

     0.21        0.68        1.38       1.31        0.43  
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Distributions(b)

 

From net investment income

     (0.17 )       (0.18 )       (0.18 )      (0.23 )       (0.13 ) 

From net realized gain

     (0.27 )       (0.22 )       (1.76 )      (0.03 )       (0.01 ) 
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Total distributions

     (0.44 )       (0.40 )       (1.94 )      (0.26 )       (0.14 ) 
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Net asset value, end of year

   $ 10.77      $ 11.00      $ 10.72     $ 11.28      $ 10.23  
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Total Return(c)

 

Based on net asset value

     2.00 %       6.81 %       13.32 %(d)      13.02 %       4.46 % 
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Ratios to Average Net Assets

 

Total expenses

     0.08 %       0.07 %       0.09 %      0.08 %       0.09 %(e) 
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Total expenses excluding recoupment of past fees waived and/or reimbursed

     0.07 %       0.06 %       0.08 %      0.07 %       0.09 %(e) 
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Total expenses after fees waived and/or reimbursed

     0.07 %       0.07 %       0.07 %      0.06 %       0.07 %(e) 
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Net investment income

     1.73 %       1.67 %       1.25 %      1.67 %       1.78 %(e) 
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Supplemental Data

 

Net assets, end of year (000)

   $ 937,493      $ 783,361      $ 410,593     $ 229,763      $ 2,174,096  
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Portfolio turnover rate

     26 %       25 %       75 %      41 %       24 % 
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  
(a) 

Based on average shares outstanding.

(b) 

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

(c) 

Where applicable, assumes the reinvestment of distributions.

(d) 

Includes payment received from an affiliate, which had no impact on the Fund’s total return.

(e) 

Excludes 0.01% of expenses incurred indirectly as a result of investments in underlying funds.

See notes to financial statements.

 

 

78  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights  (continued)

(For a share outstanding throughout each period)

 

    iShares Russell Small/Mid-Cap Index Fund  
    Institutional  
    Year Ended July 31,          

Period from

08/13/15 (a)

to 07/31/16

  
    2020      2019      2018     2017        
             

Net asset value, beginning of period

   $ 12.72      $ 13.20      $ 11.58     $ 10.22       $ 10.00  
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Net investment income(b)

     0.13        0.18        0.15       0.15         0.14  

Net realized and unrealized gain (loss)

     (0.35 )       (0.16 )       1.82       1.38         0.19  
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Net increase (decrease) from investment operations

     (0.22 )       0.02        1.97       1.53         0.33  
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Distributions(c)

 

From net investment income

     (0.16 )       (0.20 )       (0.17 )      (0.15 )        (0.11 ) 

From net realized gain

     (0.17 )       (0.30 )       (0.18 )      (0.02 )        (0.00 )(d) 
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Total distributions

     (0.33 )       (0.50 )       (0.35 )      (0.17 )        (0.11 ) 
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Net asset value, end of period

   $ 12.17      $ 12.72      $ 13.20     $ 11.58       $ 10.22  
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Total Return(e)

 

Based on net asset value

     (1.68 )%       0.58 %       17.27 %(f)      15.02 %        3.44 %(g) 
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Ratios to Average Net Assets

 

Total expenses

     0.21 %       0.24 %       0.28 %      0.74 %(h)        1.60 %(h)(i)(j) 
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Total expenses excluding recoupment of past fees waived and/or reimbursed

     0.21 %       0.24 %       0.28 %      0.74 %(h)        1.60 %(h)(i)(j) 
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Total expenses after fees waived and/or reimbursed

     0.12 %       0.12 %       0.12 %      0.11 %(h)        0.12 %(h)(i) 
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Net investment income

     1.14 %       1.48 %       1.21 %      1.31 %(h)        1.50 %(h)(i) 
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Supplemental Data

 

Net assets, end of period (000)

   $ 58,680      $ 12,239      $ 14,431     $ 3,939       $ 78  
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Portfolio turnover rate

     29 %       27 %       54 %      48 %        17 % 
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

 

(a) 

Commencement of operations.

(b) 

Based on average shares outstanding.

(c) 

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

(d) 

Amount is greater than $(0.005) per share.

(e) 

Where applicable, assumes the reinvestment of distributions.

(f) 

Includes payment from an affiliate, which had no impact on the Fund’s total return.

(g) 

Aggregate total return.

(h) 

Excludes 0.01% of expenses incurred indirectly as a result of investments in underlying funds.

(i) 

Annualized.

(j) 

Audit, offering and organization costs were not annualized in the calculation of the expense ratio. If these expenses were annualized, the total expenses would have been 1.63%.

See notes to financial statements.

 

 

FINANCIAL HIGHLIGHTS

   79

Financial Highlights  (continued)

(For a share outstanding throughout each period)

 

    iShares Russell Small/Mid-Cap Index Fund (continued)  
    Investor A  
    Year Ended July 31,          

Period from

08/13/15 (a)

to 07/31/16

  
    2020      2019      2018     2017        
             

Net asset value, beginning of period

   $ 12.70      $ 13.18      $ 11.56     $ 10.21       $ 10.00  
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Net investment income(b)

     0.13        0.15        0.14       0.13         0.08  

Net realized and unrealized gain (loss)

     (0.37 )       (0.16 )       1.80       1.37         0.23  
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Net increase (decrease) from investment operations

     (0.24 )       (0.01 )       1.94       1.50         0.31  
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Distributions(c)

 

From net investment income

     (0.14 )       (0.17 )       (0.14 )      (0.13 )        (0.10 ) 

From net realized gain

     (0.17 )       (0.30 )       (0.18 )      (0.02 )        (0.00 )(d) 
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Total distributions

     (0.31 )       (0.47 )       (0.32 )      (0.15 )        (0.10 ) 
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Net asset value, end of period

   $ 12.15      $ 12.70      $ 13.18     $ 11.56       $ 10.21  
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Total Return(e)

 

Based on net asset value

     (1.90 )%       0.35 %       17.03 %(f)      14.71 %        3.24 %(g) 
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Ratios to Average Net Assets

 

Total expenses

     0.44 %       0.45 %       0.51 %      0.74 %(h)        1.17 %(h)(i)(j) 
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Total expenses excluding recoupment of past fees waived and/or reimbursed

     0.44 %       0.45 %       0.51 %      0.74 %(h)        1.17 %(h)(i)(j) 
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Total expenses after fees waived and/or reimbursed

     0.35 %       0.35 %       0.35 %      0.33 %(h)        0.35 %(h)(i) 
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Net investment income

     1.13 %       1.25 %       1.10 %      1.22 %(h)        0.79 %(h)(i) 
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Supplemental Data

 

Net assets, end of period (000)

   $ 55,522      $ 30,250      $ 25,073     $ 21,358       $ 5,713  
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Portfolio turnover rate

     29 %       27 %       54 %      48 %        17 % 
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

 

(a) 

Commencement of operations.

(b) 

Based on average shares outstanding.

(c) 

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

(d) 

Amount is greater than $(0.005) per share.

(e) 

Where applicable, assumes the reinvestment of distributions.

(f) 

Includes payment from an affiliate, which had no impact on the Fund’s total return.

(g) 

Aggregate total return.

(h) 

Excludes 0.01% of expenses incurred indirectly as a result of investments in underlying funds.

(i) 

Annualized.

(j) 

Audit, offering and organization costs were not annualized in the calculation of the expense ratio. If these expenses were annualized, the total expenses would have been 1.18%.

See notes to financial statements.

 

 

80  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights  (continued)

(For a share outstanding throughout each period)

 

    iShares Russell Small/Mid-Cap Index Fund (continued)  
    Class K  
    Year Ended July 31,          

Period from

08/13/15 (a)

to 07/31/16

  
    2020      2019      2018     2017        
             

Net asset value, beginning of period

   $ 12.72      $ 13.20      $ 11.58     $ 10.22       $ 10.00  
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Net investment income(b)

     0.19        0.19        0.17       0.16         0.14  

Net realized and unrealized gain (loss)

     (0.40 )       (0.16 )       1.80       1.37         0.19  
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Net increase (decrease) from investment operations

     (0.21 )       0.03        1.97       1.53         0.33  
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Distributions(c)

 

From net investment income

     (0.17 )       (0.21 )       (0.17 )      (0.15 )        (0.11 ) 

From net realized gain

     (0.17 )       (0.30 )       (0.18 )      (0.02 )        (0.00 )(d) 
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Total distributions

     (0.34 )       (0.51 )       (0.35 )      (0.17 )        (0.11 ) 
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Net asset value, end of period

   $ 12.17      $ 12.72      $ 13.20     $ 11.58       $ 10.22  
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Total Return(e)

 

Based on net asset value

     (1.64 )%       0.63 %       17.32 %(f)      15.04 %        3.48 %(g) 
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Ratios to Average Net Assets

 

Total expenses

     0.16 %       0.17 %       0.23 %      0.47 %(h)        1.34 %(h)(i)(j) 
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Total expenses excluding recoupment of past fees waived and/or reimbursed

     0.16 %       0.17 %       0.23 %      0.47 %(h)        1.34 %(h)(i)(j) 
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Total expenses after fees waived and/or reimbursed

     0.07 %       0.07 %       0.07 %      0.07 %(h)        0.08 %(h)(i) 
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Net investment income

     1.55 %       1.53 %       1.37 %      1.47 %(h)        1.57 %(h)(i) 
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Supplemental Data

 

Net assets, end of period (000)

   $ 142,813      $ 154,242      $ 87,011     $ 64,118       $ 27,109  
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Portfolio turnover rate

     29 %       27 %       54 %      48 %        17 % 
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

 

(a) 

Commencement of operations.

(b) 

Based on average shares outstanding.

(c) 

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

(d) 

Amount is greater than $(0.005) per share.

(e) 

Where applicable, assumes the reinvestment of distributions.

(f) 

Includes payment from an affiliate, which had no impact on the Fund’s total return.

(g) 

Aggregate total return.

(h) 

Excludes 0.01% of expenses incurred indirectly as a result of investments in underlying funds.

(i) 

Annualized.

(j) 

Audit, offering and organization costs were not annualized in the calculation of the expense ratio. If these expenses were annualized, the total expenses would have been 1.37%.

See notes to financial statements.

 

 

FINANCIAL HIGHLIGHTS

   81

Financial Highlights  (continued)

(For a share outstanding throughout each period)

 

    iShares Total U.S. Stock Market Index Fund  
    Institutional  
    Year Ended July 31,          

Period from

08/13/15 (a)

to 07/31/16

  
    2020      2019      2018     2017        
             

Net asset value, beginning of period

   $ 14.13      $ 13.52      $ 11.89     $ 10.44       $ 10.00  
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Net investment income(b)

     0.25        0.25        0.22       0.21         0.18  

Net realized and unrealized gain

     1.24        0.67        1.69       1.44         0.39  
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Net increase from investment operations

     1.49        0.92        1.91       1.65         0.57  
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Distributions(c)

 

From net investment income

     (0.27 )       (0.26 )       (0.22 )      (0.19 )        (0.13 ) 

From net realized gain

     (0.04 )       (0.05 )       (0.06 )      (0.01 )        (0.00 )(d) 
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Total distributions

     (0.31 )       (0.31 )       (0.28 )      (0.20 )        (0.13 ) 
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Net asset value, end of period

   $ 15.31      $ 14.13      $ 13.52     $ 11.89       $ 10.44  
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Total Return(e)

 

Based on net asset value

     10.79 %       7.01 %       16.21 %(f)      16.03 %(f)        5.75 %(g) 
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Ratios to Average Net Assets

 

Total expenses

     0.09 %       0.09 %       0.11 %      0.08 %        0.77 %(h)(i)(j) 
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Total expenses excluding recoupment of past fees waived and/or reimbursed

     0.09 %       0.09 %       0.11 %      0.08 %        0.77 %(h)(i)(j) 
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Total expenses after fees waived

     0.08 %       0.08 %       0.08 %      0.05 %        0.06 %(h)(i) 
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Net investment income

     1.79 %       1.87 %       1.69 %      1.87 %        1.96 %(h)(i) 
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Supplemental Data

 

Net assets, end of period (000)

   $ 84,117      $ 88,223      $ 83,121     $ 27,221       $ 2,428  
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Portfolio turnover rate

     15 %       19 %       14 %      11 %        4 % 
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

 

(a) 

Commencement of operations.

(b) 

Based on average shares outstanding.

(c) 

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

(d) 

Amount is greater than $(0.005) per share.

(e) 

Where applicable, assumes the reinvestment of distributions.

(f) 

Includes payment received from an affiliate, which had no impact on the Fund’s total return.

(g) 

Aggregate total return.

(h) 

Excludes 0.01% of expenses incurred indirectly as a result of investments in underlying funds.

(i) 

Annualized.

(j) 

Audit, offering and organization costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 0.79%

See notes to financial statements.

 

 

82  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights  (continued)

(For a share outstanding throughout each period)

 

    iShares Total U.S. Stock Market Index Fund (continued)  
    Investor A  
    Year Ended July 31,          

Period from

08/13/15 (a)

to 07/31/16

  
    2020      2019      2018     2017        
             

Net asset value, beginning of period

   $ 14.11      $ 13.50      $ 11.88     $ 10.44       $ 10.00  
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Net investment income(b)

     0.22        0.22        0.19       0.18         0.10  

Net realized and unrealized gain

     1.24        0.67        1.68       1.44         0.45  
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Net increase from investment operations

     1.46        0.89        1.87       1.62         0.55  
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Distributions(c)

 

From net investment income

     (0.24 )       (0.23 )       (0.19 )      (0.17 )        (0.11 ) 

From net realized gain

     (0.04 )       (0.05 )       (0.06 )      (0.01 )        (0.00 )(d) 
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Total distributions

     (0.28 )       (0.28 )       (0.25 )      (0.18 )        (0.11 ) 
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Net asset value, end of period

   $ 15.29      $ 14.11      $ 13.50     $ 11.88       $ 10.44  
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Total Return(e)

 

Based on net asset value

     10.56 %       6.77 %       15.87 %(f)      15.71 %(f)        5.57 %(g) 
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Ratios to Average Net Assets

 

Total expenses

     0.31 %       0.32 %       0.34 %      0.33 %        0.44 %(h)(i)(j) 
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Total expenses excluding recoupment of past fees waived and/or reimbursed

     0.31 %       0.32 %       0.34 %      0.32 %        0.44 %(h)(i)(j) 
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Total expenses after fees waived

     0.30 %       0.31 %       0.31 %      0.29 %        0.29 %(h)(i) 
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Net investment income

     1.56 %       1.64 %       1.51 %      1.63 %        1.06 %(h)(i) 
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Supplemental Data

 

Net assets, end of period (000)

   $ 114,362      $ 84,192      $ 72,794     $ 61,048       $ 8,873  
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Portfolio turnover rate

     15 %       19 %       14 %      11 %        4 % 
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

 

(a) 

Commencement of operations.

(b) 

Based on average shares outstanding.

(c) 

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

(d) 

Amount is greater than $(0.005) per share.

(e) 

Where applicable, assumes the reinvestment of distributions.

(f) 

Includes payment received from an affiliate, which had no impact on the Fund’s total return.

(g) 

Aggregate total return.

(h) 

Excludes 0.01% of expenses incurred indirectly as a result of investments in underlying funds.

(i) 

Annualized.

(j) 

Audit, offering and organization costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 0.44%.

See notes to financial statements.

 

 

FINANCIAL HIGHLIGHTS

   83

Financial Highlights  (continued)

(For a share outstanding throughout each period)

 

    iShares Total U.S. Stock Market Index Fund (continued)  
    Class K  
    Year Ended July 31,          

Period from

08/13/15 (a)

to 07/31/16

  
    2020      2019      2018     2017        
             

Net asset value, beginning of period

   $ 14.13      $ 13.52      $ 11.89     $ 10.44       $ 10.00  
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Net investment income(b)

     0.26        0.26        0.23       0.22         0.17  

Net realized and unrealized gain

     1.24        0.66        1.69       1.44         0.40  
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Net increase from investment operations

     1.50        0.92        1.92       1.66         0.57  
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Distributions(c)

 

From net investment income

     (0.28 )       (0.26 )       (0.23 )      (0.20 )        (0.13 ) 

From net realized gain

     (0.04 )       (0.05 )       (0.06 )      (0.01 )        (0.00 )(d) 
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Total distributions

     (0.32 )       (0.31 )       (0.29 )      (0.21 )        (0.13 ) 
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Net asset value, end of period

   $ 15.31      $ 14.13      $ 13.52     $ 11.89       $ 10.44  
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Total Return(e)

 

Based on net asset value

     10.84 %       7.06 %       16.26 %(f)      16.05 %(f)        5.78 %(g) 
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Ratios to Average Net Assets

 

Total expenses

     0.04 %       0.04 %       0.06 %      0.06 %        0.37 %(h)(i)(j) 
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Total expenses excluding recoupment of past fees waived and/or reimbursed

     0.04 %       0.04 %       0.06 %      0.06 %        0.37 %(h)(i)(j) 
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Total expenses after fees waived

     0.03 %       0.03 %       0.03 %      0.03 %        0.03 %(h)(i) 
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Net investment income

     1.84 %       1.91 %       1.79 %      1.95 %        1.71 %(h)(i) 
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Supplemental Data

 

Net assets, end of period (000)

   $ 1,043,568      $ 916,638      $ 761,815     $ 599,599       $ 290,381  
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

Portfolio turnover rate

     15 %       19 %       14 %      11 %        4 % 
 

 

 

     

 

 

     

 

 

    

 

 

      

 

 

  

 

(a) 

Commencement of operations.

(b) 

Based on average shares outstanding.

(c) 

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

(d) 

Amount is greater than $(0.005) per share.

(e) 

Where applicable, assumes the reinvestment of distributions.

(f) 

Includes payment received from an affiliate, which had no impact on the Fund’s total return.

(g) 

Aggregate total return.

(h) 

Excludes 0.01% of expenses incurred indirectly as a result of investments in underlying funds.

(i) 

Annualized.

(j) 

Audit, offering and organization costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 0.38%.

See notes to financial statements.

 

 

84  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements

 

1.

ORGANIZATION

BlackRock FundsSM (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 Massachusetts business trust. The following, each of which is a series of the Trust, are referred to herein collectively as the “Funds” or individually as a “Fund”:

 

Fund Name   Herein Referred To As    Diversification
Classification

iShares Russell Mid-Cap Index Fund

   Mid-Cap Index    Diversified

iShares Russell Small/Mid-Cap Index Fund

   Small/Mid-Cap Index    Diversified

iShares Total U.S. Stock Market Index Fund

   Total U.S. Stock Market Index    Diversified

Each Fund offers multiple classes of shares. All classes of shares have identical voting, dividend, liquidation and other rights and are subject to the same terms and conditions, except that certain classes bear expenses related to the shareholder servicing and distribution of such shares. Institutional and Class K Shares are sold only to certain eligible investors. Investor A Shares bear certain expenses related to shareholder servicing of such shares. Investor A Shares are generally available through financial intermediaries. Each class has exclusive voting rights with respect to matters relating to its shareholder servicing and distribution expenditures.

 

Share Class   Initial Sales Charge    Contingent Deferred
Sales Charge		    Conversion Privilege

Institutional, Investor A and Class K Shares

   No    No    None

The Funds, together with certain other registered investment companies advised by BlackRock Advisors, LLC (the “Manager”) or its affiliates, are included in a complex of equity, multi-asset, index and money market funds referred to as the BlackRock Multi-Asset Complex.

 

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 on the identified cost basis. Dividend income and non-cash dividend income, if any, are recorded on the ex-dividend date. Upon notification from issuers, 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. Income, expenses and realized and unrealized gains and losses are allocated daily to each class based on its relative net assets.

Foreign Currency Translation: Each Fund’s books and records are maintained in U.S. dollars. Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates determined as of the close of trading on the New York Stock Exchange (“NYSE”). Purchases and sales of investments are recorded at the rates of exchange prevailing on the respective dates of such transactions. Generally, when the U.S. dollar rises in value against a foreign currency, the investments denominated in that currency will lose value; the opposite effect occurs if the U.S. dollar falls in relative value.

Each Fund does not isolate the portion of the results of operations arising as a result of changes in the exchange rates from the changes in the market prices of investments held or sold for financial reporting purposes. Accordingly, the effects of changes in exchange rates on investments are not segregated in the Statements of Operations from the effects of changes in market prices of those investments, but are included as a component of net realized and unrealized gain (loss) from investments. Each Fund reports realized currency gains (losses) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for U.S. federal income tax purposes.

Segregation and Collateralization: In cases where a Fund enters into certain investments (e.g., futures contracts) that would be treated as “senior securities” for 1940 Act purposes, a Fund may segregate or designate on its books and records cash or liquid assets having a market value at least equal to the amount of its future obligations under such investments. Doing so allows the investment to be excluded from treatment as a “senior security.” Furthermore, 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 or obligations.

Distributions: Distributions paid by the Funds are recorded on the ex-dividend dates. The character and timing of distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

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

Other: Expenses directly related to a Fund or its classes are charged to that Fund or the applicable class. Expenses directly related to the Funds and other shared expenses prorated to the Funds are allocated daily to each class based on their relative net assets or other appropriate methods. Other operating expenses shared by several funds, including other funds managed by the Manager are prorated among those funds on the basis of relative net assets or other appropriate methods.

 

 

NOTES TO FINANCIAL STATEMENTS

   85

Notes to Financial Statements  (continued)

 

3.

INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

Investment Valuation Policies: The Funds’ investments are valued at fair value (also referred to as “market value” within the financial statements) as of the close of trading on the NYSE (generally 4:00 p.m., Eastern time). U.S. GAAP defines fair value as the price the Funds would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Funds determine the fair values of their financial instruments using various independent dealers or pricing services under policies approved by the Board of Trustees of the Trust (the “Board”). If a security’s market price is not readily available or does not otherwise accurately represent the fair value of the security, the security will be valued in accordance with a policy approved by the Board as reflecting fair value. The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.

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

 

  •  

Equity investments traded on a recognized securities exchange are valued at the official closing price each day, if available. For equity investments traded on more than one exchange, the official closing price on the exchange where the stock is primarily traded is used. Equity investments traded on a recognized exchange for which there were no sales on that day may be valued at the last available bid (long positions) or ask (short positions) price.

 

  •  

Investments in open-end U.S. mutual funds are valued at net asset value (“NAV”) each business day.

 

  •  

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

If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of such investments, or in the event that the application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, or its delegate, in accordance with a policy approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee will 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 Global Valuation Committee, or its delegate, seeks to determine the price that each Fund might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the Global Valuation Committee, or its delegate, deems relevant and consistent with the principles of fair value measurement. The pricing of all Fair Valued Investments is subsequently reported to the Board or a committee thereof on a quarterly basis.

For investments in equity or debt issued by privately held companies or funds (“Private Company” or collectively, the “Private Companies”) and other Fair Valued Investments, the fair valuation approaches that are used by the Global Valuation Committee and third party pricing services utilize one or a combination of, but not limited to, the following inputs.

 

     Standard Inputs Generally Considered By Third Party Pricing Services

Market approach

  

(i)  recent market transactions, including subsequent rounds of financing, in the underlying investment or comparable issuers;

(ii) recapitalizations and other transactions across the capital structure; and

(iii)   market multiples of comparable issuers.

Income approach

  

(i)  future cash flows discounted to present and adjusted as appropriate for liquidity, credit, and/or market risks;

(ii) quoted prices for similar investments or assets in active markets; and

(iii)   other risk factors, such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, recovery rates, liquidation amounts and/or default rates.

Cost approach

  

(i)  audited or unaudited financial statements, investor communications and financial or operational metrics issued by the Private Company;

(ii) changes in the valuation of relevant indices or publicly traded companies comparable to the Private Company;

(iii)   relevant news and other public sources; and

(iv)   known secondary market transactions in the Private Company’s interests and merger or acquisition activity in companies comparable to the Private Company.

Investments in series of preferred stock issued by Private Companies are typically valued utilizing market approach in determining the enterprise value of the company. Such investments often contain rights and preferences that differ from other series of preferred and common stock of the same issuer. Valuation techniques such as an option pricing model (“OPM”), a probability weighted expected return model (“PWERM”) or a hybrid of those techniques are used in allocating enterprise value of the company, as deemed appropriate under the circumstances. The use of OPM and PWERM techniques involve a determination of the exit scenarios of the investment in order to appropriately allocate the enterprise value of the company among the various parts of its capital structure.

The Private Companies are not subject to the public company disclosure, timing, and reporting standards as other investments held by a Fund. Typically, the most recently available information by a Private Company is as of a date that is earlier than the date a Fund is calculating its NAV. This factor may result in a difference between the value of the investment and the price a Fund could receive upon the sale of the investment.

Fair Value Hierarchy: Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial statement 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)

 

 

86  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements  (continued)

 

  •  

Level 3 — Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Global Valuation Committee’s assumptions used in determining the fair value of investments and derivative 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 Global Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by Private Companies. There may not be a secondary market, and/or there are a limited number of investors. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investments and derivative financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

 

4.

SECURITIES AND OTHER INVESTMENTS

Warrants: Warrants entitle a fund to purchase a specified number of shares of common stock and are non-income producing. The purchase price and number of shares are subject to adjustment under certain conditions until the expiration date of the warrants, if any. If the price of the underlying stock does not rise above the strike price before the warrant expires, the warrant generally expires without any value and a fund will lose any amount it paid for the warrant. Thus, investments in warrants may involve more risk than investments in common stock. Warrants may trade in the same markets as their underlying stock; however, the price of the warrant does not necessarily move with the price of the underlying stock.

Securities Lending: Certain Funds may lend their securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Funds collateral consisting of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. Government. The initial collateral received by each Fund is required to have a value of at least 102% of the current value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current market 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 returned by the Fund, on the next business day. During the term of the loan, the Funds are entitled to all distributions made on or in respect of the loaned securities, but do 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.

The market value of any securities on loan, all of which were classified as common stocks in the Funds’ Schedules of Investments, and the value of any related collateral are shown separately in the Statements of Assets and Liabilities as a component of investments at value – unaffiliated, and collateral on securities loaned at value, respectively. As of period end, any securities on loan were collateralized by cash and/or U.S. Government obligations. Cash collateral invested by the securities lending agent, BlackRock Institutional Trust Company, N.A. (“BTC”), if any, is disclosed in the Schedules of Investments.

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 a 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.

 

 

NOTES TO FINANCIAL STATEMENTS

   87

Notes to Financial Statements  (continued)

 

As of period end, the following table is a summary of the Funds’ securities lending agreements by counterparty which are subject to offset under an MSLA:

 

Counterparty   Securities
Loaned at Value		      Cash Collateral
Received (a)		     Net
Amount (b)		  

Mid-Cap Index

       

Barclays Capital, Inc.

   $ 2,975,697      $ (2,975,697 )    $ —  

BNP Paribas Securities Corp

     172,876        (172,876 )      —  

BofA Securities, Inc.

     1,150,485        (1,150,485 )      —  

Citigroup Global Markets, Inc.

     2,421,429        (2,421,429 )      —  

Credit Suisse Securities (USA) LLC

     817,954        (817,954 )      —  

HSBC Bank PLC

     528,843        (528,843 )      —  

ING Financial Markets LLC

     702        (702 )      —  

Morgan Stanley & Co. LLC

     9,356,177        (9,356,177 )      —  

National Financial Services LLC

     1,334,388        (1,334,388 )      —  

Scotia Capital (USA), Inc.

     3,097,208        (3,061,690 )      35,518  

SG Americas Securities LLC

     314,741        (314,741 )      —  

State Street Bank & Trust Company

     476,067        (476,067 )      —  

TD Prime Services LLC

     551,112        (551,112 )      —  

Virtu Americas LLC

     332,140        (332,140 )      —  

Wells Fargo Bank, National Association

     351,642        (351,642 )   

Wells Fargo Securities LLC

     3,940,751        (3,940,751 )      —  
 

 

 

     

 

 

    

 

 

  
  $ 27,822,212      $ (27,786,694 )    $ 35,518  
 

 

 

     

 

 

    

 

 

  

Small/Mid-Cap Index

 

BNP Paribas Securities Corp

   $ 115,754      $ (115,754 )    $ —  

BofA Securities, Inc.

     1,197,688        (1,197,688 )      —  

Citigroup Global Markets, Inc.

     3,570,150        (3,570,150 )      —  

Credit Suisse Securities (USA) LLC

     1,033,069        (1,033,069 )      —  

Goldman Sachs & Co.

     4,098,405        (4,098,405 )      —  

HSBC Bank PLC

     72,077        (72,077 )      —  

Jefferies LLC

     110,017        (110,017 )      —  

J.P. Morgan Securities LLC

     3,797,922        (3,797,922 )      —  

Morgan Stanley & Co. LLC

     3,546,258        (3,546,258 )      —  

National Financial Services LLC

     977,608        (977,608 )      —  

Nomura Securities International, Inc.

     9,934        (9,934 )      —  

Scotia Capital (USA), Inc.

     8,149        (8,149 )      —  

SG Americas Securities LLC

     90,830        (90,617 )      213  

State Street Bank & Trust Company

     157,646        (157,646 )   

TD Prime Services LLC

     373,989        (373,989 )      —  

Virtu Americas LLC

     537,406        (537,406 )      —  

Wells Fargo Bank, National Association

     1,938,435        (1,938,435 )      —  

Wells Fargo Securities LLC

     1,218,932        (1,218,932 )      —  
 

 

 

     

 

 

    

 

 

  
  $ 22,854,269      $ (22,854,056 )    $ 213  
 

 

 

     

 

 

    

 

 

  

Total U.S. Stock Market Index

 

BNP Paribas Securities Corp

   $ 4,307      $ (4,307 )    $ —  

BofA Securities, Inc.

     2,047,481        (2,047,481 )      —  

Citadel Clearing LLC

     17,756        (17,756 )      —  

Citigroup Global Markets, Inc.

     1,277,516        (1,277,516 )      —  

Credit Suisse Securities (USA) LLC

     126,084        (117,498 )      8,586  

Goldman Sachs & Co.

     1,867,682        (1,867,682 )      —  

HSBC Bank PLC

     31,389        (31,389 )      —  

Jefferies LLC

     42,056        (42,056 )      —  

J.P. Morgan Securities LLC

     2,876,767        (2,876,767 )      —  

Morgan Stanley & Co. LLC

     2,967,663        (2,967,663 )      —  

National Financial Services LLC

     440,611        (440,611 )      —  

Nomura Securities International, Inc.

     307,100        (307,100 )      —  

Scotia Capital (USA), Inc.

     314,604        (314,604 )      —  

SG Americas Securities LLC

     637,289        (637,289 )      —  

State Street Bank & Trust Company

     138,181        (138,175 )      6  

TD Prime Services LLC

     180,600        (179,522 )      1,078  

Wells Fargo Bank, National Association

     1,351,373        (1,351,373 )      —  

Wells Fargo Securities LLC

     787,682        (783,765 )      3,917  
 

 

 

     

 

 

    

 

 

  
  $ 15,416,141      $ (15,402,554 )    $ 13,587  
 

 

 

     

 

 

    

 

 

  

 

  (a) 

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

 
  (b) 

The market value of the loaned securities is determined as of July 31, 2020. 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.

 

 

 

88  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements  (continued)

 

The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, the Funds benefit 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 the Funds.

 

5.

DERIVATIVE FINANCIAL INSTRUMENTS

The Funds engage in various portfolio investment strategies using derivative contracts both to increase the returns of the Funds and/or to manage their exposure to certain risks such as credit risk, equity risk, interest rate risk, foreign currency exchange rate risk, commodity price risk or other risks (e.g., inflation risk). Derivative financial instruments categorized by risk exposure are included in the Schedules of Investments. These contracts may be transacted on an exchange or OTC.

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 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 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 Statements of Assets and Liabilities.

Securities deposited as initial margin are designated in the Schedules 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, foreign currency exchange rates or underlying assets.

 

6.

INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Advisory: The Trust, on behalf of each Fund, entered into an Investment Advisory Agreement with the Manager, the Funds’ investment adviser and an indirect, wholly-owned subsidiary of BlackRock, to provide investment advisory and administrative services. The Manager is responsible for the management of each Fund’s portfolio and provides the personnel, facilities, equipment and certain other services necessary to the operations of each Fund.

For such services, each Fund pays the Manager a monthly fee at an annual rate equal to the following percentages of the average daily value of each Fund’s net assets:

 

     Investment
Advisory Fees		  

Mid-Cap Index

     0.02 % 

Small/Mid-Cap Index

     0.03  

Total U.S. Stock Market Index

     0.01  

With respect to each Fund, the Manager entered into separate sub-advisory agreements with BlackRock Fund Advisors (“BFA”), an affiliate of the Manager. The Manager pays BFA for services it provides for that portion of each Fund for which BFA acts as sub-adviser, a monthly fee that is equal to a percentage of the investment advisory fees paid by each Fund to the Manager.

Service Fees: The Trust, on behalf of the Funds, entered into a Distribution Agreement and a Distribution and Service Plan with BlackRock Investments, LLC (“BRIL”), an affiliate of the Manager. Pursuant to the Distribution and Service Plan and in accordance with Rule 12b-1 under the 1940 Act, each Fund pays BRIL ongoing service fees. The fees are accrued daily and paid monthly at annual rates based upon the average daily net assets of the relevant share class of each Fund as follows:

 

     Service Fees  

Investor A

     0.25 % 

BRIL and broker-dealers, pursuant to sub-agreements with BRIL, provide shareholder servicing services to the Funds. The ongoing service fee compensates BRIL and each broker-dealer for providing shareholder servicing related services to shareholders.

 

 

NOTES TO FINANCIAL STATEMENTS

   89

Notes to Financial Statements  (continued)

 

For the year ended July 31, 2020, the following table shows the class specific service fees borne directly by each share class of each Fund:

 

     Investor A  

Mid-Cap Index

   $ 239,359  

Small/Mid-Cap Index

     88,217  

Total U.S. Stock Market Index

     237,667  

Transfer Agent: Pursuant to written agreements, certain financial intermediaries, some of which may be affiliates, provide the Funds with sub-accounting, recordkeeping, sub-transfer agency and other administrative services with respect to servicing of underlying investor accounts. For these services, these entities receive an asset-based fee or an annual fee per shareholder account, which will vary depending on share class and/or net assets. For the year ended July 31, 2020, the Funds did not pay any amounts to affiliates in return for these services.

The Manager maintains a call center that is responsible for providing certain shareholder services to the Funds. Shareholder services include responding to inquiries and processing purchases and sales based upon instructions from shareholders. For the year ended July 31, 2020, each Fund reimbursed the Manager the following amounts for costs incurred in running the call center, which are included in transfer agent — class specific in the Statements of Operations:

 

     Institutional      Investor A      Class K        Total  

Mid-Cap Index

   $ 717      $ 2,250      $ 1,749        $ 4,716  

Small/Mid-Cap Index

     54        911        378          1,343  

Total U.S. Stock Market Index

     354        3,103        2,195          5,652  

For the year ended July 31, 2020, the following table shows the class specific transfer agent fees borne directly by each share class of each Fund:

 

     Institutional      Investor A      Class K      Total  

Mid-Cap Index

   $ 85,554      $ 48,545      $ 166,022      $ 300,121  

Small/Mid-Cap Index

     14,078        10,655        2,636        27,369  

Total U.S. Stock Market Index

     45,076        21,333        19,218        85,627  

Expense Limitations, Waivers, Reimbursements and Recoupments: With respect to each Fund, the Manager contractually agreed to waive its investment advisory fees by the amount of investment advisory fees each Fund pays to the Manager indirectly through its investment in affiliated money market funds (the “affiliated money market fund waiver”) through November 30, 2020. The contractual agreement may be terminated upon 90 days’ notice by a majority of the trustees who are not “interested persons” of the Trust, as defined in the 1940 Act (“Independent Trustees”), or by a vote of a majority of the outstanding voting securities of a Fund. The amount of waivers and/or reimbursements of fees and expenses made pursuant to the expense limitation described below will be reduced by the amount of the affiliated money market fund waiver. Prior to November 27, 2019, this waiver was voluntary. These amounts are included in fees waived and/or reimbursed by the Manager in the Statements of Operations. For the year ended July 31, 2020, the amounts waived were as follows:

 

    

Fees Waived and/or

Reimbursed by the Manager

  

Mid-Cap Index

   $ 7,906  

Small/Mid-Cap Index

     1,472  

Total U.S. Stock Market Index

     7,372  

The Manager has contractually agreed to waive its investment advisory fee with respect to any portion of each Fund’s assets invested in affiliated equity and fixed-income mutual funds and affiliated exchange-traded funds that have a contractual management fee through November 30, 2020. The contractual agreement may be terminated upon 90 days’ notice by a majority of the Independent Trustees, or by a vote of a majority of the outstanding voting securities of a Fund. These amounts are included in fees waived and/or reimbursed by the Manager in the Statements of Operations. For the year ended July 31, 2020, the amounts waived in investment advisory fees pursuant to these arrangements were as follows:

 

    

Fees Waived and/or

Reimbursed by the Manager

  

Mid-Cap Index

   $ 1,619  

Small/Mid-Cap Index

     467  

Total U.S. Stock Market Index

     685  

With respect to each Fund, the Manager contractually agreed to waive and/or reimburse fees or expenses in order to limit expenses, excluding interest expense, dividend expense, tax expense, acquired fund fees and expenses, and certain other fund expenses, which constitute extraordinary expenses not incurred in the ordinary course of each Fund’s business (“expense limitation”). The expense limitations as a percentage of average daily net assets are as follows:

 

     Mid-Cap
Index		      Small/Mid-Cap
Index		      Total U.S.
Stock Market
Index		  

Institutional

     0.12 %       0.12 %       0.08 % 

Investor A

     0.37        0.37        0.33  

Class K

     0.07        0.07        0.03  

 

 

90  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements  (continued)

 

The Manager has agreed not to reduce or discontinue these contractual expense limitations through November 30, 2020, unless approved by the Board, including a majority of the Independent Trustees, or by a vote of a majority of the outstanding voting securities of a Fund. For the year ended July 31, 2020, the Manager waived and/or reimbursed the following amounts, which are included in fees waived and/or reimbursed by the Manager in the Statements of Operations:

 

    

Fees Waived and/or

Reimbursed by
the Manager

  

Small/Mid-Cap Index

   $ 177,108  

Total U.S. Stock Market Index

     100,739  

These amounts waived and/or reimbursed are included in transfer agent fees waived and/or reimbursed—class specific, in the Statements of Operations. For the year ended July 31, 2020, class specific expense waivers and/or reimbursements are as follows:

 

Transfer Agent Fees Waived and/or reimbursed   Institutional      Investor A      Class K      Total  

Mid-Cap Index

   $ 1      $ 1,255      $ 43,629      $ 44,885  

Small/Mid-Cap Index

     1,236        —        2,635        3,871  

Total U.S. Stock Market Index

     1,785        —        19,215        21,000  

With respect to the contractual expense limitation, if during a Fund’s fiscal year the operating expenses of a share class, that at any time during the prior two fiscal years received a waiver and/or reimbursement from the Manager, are less than the current expense limitation for that share class, the Manager is entitled to be reimbursed by such share class up to the lesser of: (a) the amount of fees waived and/or expenses reimbursed during those prior two fiscal years under the agreement and (b) an amount not to exceed either the current expense limitation of that share class or the expense limitation of the share class in effect at the time that the share class received the applicable waiver and/or reimbursement, provided that:

(1) each Fund, of which the share class is a part, has more than $50 million in assets for the fiscal year, and

(2) the Manager or an affiliate continues to serve as a Fund’s investment adviser or administrator.

This repayment applies only to the contractual expense limitation on net expenses and does not apply to the contractual investment advisory fee waiver described above or any voluntary waivers that may be in effect from time to time. Effective August 13, 2022 for Small/Mid-Cap Index and Total U.S. Stock Market Index and effective May 13, 2022 for Mid-Cap Index, the repayment arrangement between each Fund and the Manager pursuant to which such Fund may be required to repay amounts waived and/or reimbursed under each Fund’s contractual caps on net expenses will be terminated.

For the year ended July 31, 2020, the Manager recouped the following fund level and class specific waivers and/or reimbursements previously recorded by the Funds:

 

     Mid-Cap
Index		     

Small/Mid-Cap

Index

      Total U.S.
Stock Market Index		  

Fund Level

   $ 27,922      $ —      $ —  

Institutional

     7,857        90        63  

Investor A

     —        4        —  

As of July 31, 2020, the fund level and class specific waivers and/or reimbursements subject to possible future recoupment under the expense limitation agreement are as follows:

 

     Expiring  
     July 31, 2021      May 13, 2022  

Mid-Cap Index

     

Fund Level

   $ —      $ —  

Institutional

     —        1  

Investor A

     —        1,255  

Class K

     2,319        43,630  
             July 31, 2022  

Small/Mid-Cap Index

     

Fund Level

   $ 176,663      $ 177,108  

Institutional

     2,596        1,236  

Investor A

     —        —  

Class K

     2,681        2,635  

Total U.S. Stock Market Index

     

Fund Level

   $ 83,780      $ 100,739  

Institutional

     2,968        1,785  

Investor A

     —        —  

Class K

     9,833        19,215  

 

 

NOTES TO FINANCIAL STATEMENTS

   91

Notes to Financial Statements  (continued)

 

The following fund level and class specific waivers and/or reimbursements previously recorded by the Funds, which were subject to recoupment by the Manager, expired on July 31, 2020:

 

     Expired July 31,  
     2020  

Mid-Cap Index

  

Fund Level

   $ 61,538  

Institutional

     —  

Investor A

     —  

Class K

     23,536  

Small/Mid-Cap Index

  

Fund Level

   $ 164,043  

Institutional

     1,897  

Investor A

     —  

Class K

     1,443  

Total U.S. Stock Market Index

  

Fund Level

   $ 198,638  

Institutional

     3,050  

Investor A

     —  

Class K

     11,043  

Securities Lending: The U.S. Securities and Exchange Commission (“SEC”) has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of the Manager, 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. The Funds are 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 managed by the Manager 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 Funds bear to an annual rate of 0.04%. The 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 a remaining portion to BTC as compensation for its services as securities lending agent.

Pursuant to the current securities lending agreement, each Fund retains 75% of securities lending income (which excludes collateral investment fees), and this 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 earned across the BlackRock Multi-Asset Complex in a calendar year exceeds a specified threshold, each Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year securities lending income in an amount equal to 80% of securities lending income (which excludes collateral investment fees), and this amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

Prior to January 1, 2020, each Fund retained 73.5% of securities lending income (which excluded collateral investment fees) and the amount retained could never be less than 70% of the total of securities lending income plus the collateral investment fees. In addition, commencing the business day following the date that the aggregate securities lending income earned across the BlackRock Multi-Asset Complex in a calendar year exceeded a specified threshold, the Fund would retain for the remainder of that calendar year 80% of securities lending income (which excluded collateral investment fees), and the amount retained could never be less than 70% of the total of securities lending income plus the collateral investment fees.

The share of securities lending income earned by each Fund is shown as securities lending income — affiliated — net in the Statements of Operations. For the year ended July 31, 2020, each Fund paid BTC the following amounts for securities lending agent services:

 

    

Mid-Cap

Index

      Small/Mid-Cap
Index		      Total U.S.
Stock Market Index		  

BTC

   $ 88,607      $ 67,483      $ 65,207  

Interfund Lending: In accordance with an exemptive order (the “Order”) from the SEC, each Fund may participate in a joint lending and borrowing facility for temporary purposes (the “Interfund Lending Program”), subject to compliance with the terms and conditions of the Order, and to the extent permitted by each Fund’s investment policies and restrictions. Each Fund is currently permitted to borrow and lend under the Interfund Lending Program.

A lending BlackRock fund may lend in aggregate up to 15% of its net assets, but may not lend more than 5% of its net assets to any one borrowing fund through the Interfund Lending Program. A borrowing BlackRock fund may not borrow through the Interfund Lending Program or from any other source more than 33 1/3% of its total assets (or any lower threshold provided for by the fund’s investment restrictions). If a borrowing BlackRock fund’s total outstanding borrowings exceed 10% of its total assets, each of its outstanding interfund loans will be subject to collateralization of at least 102% of the outstanding principal value of the loan. All interfund loans are for temporary or emergency purposes and the interest rate to be charged will be the average of the highest current overnight repurchase agreement rate available to a lending fund and the bank loan rate, as calculated according to a formula established by the Board.

During the year ended July 31, 2020, the Funds did not participate in the Interfund Lending Program.

 

 

92  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements  (continued)

 

Trustees and Officers: Certain trustees and/or officers of the Trust are directors and/or officers of BlackRock or its affiliates. The Funds reimburse the Manager for a portion of the compensation paid to the Trust’s Chief Compliance Officer, which is included in Trustees and Officer in the Statements of Operations.

Other Transactions: The Funds may purchase securities from, or sell securities to, an affiliated fund provided the affiliation is due solely to having a common investment adviser, common officers, or common trustees. For the year ended July 31, 2020, the purchase and sale transactions and any net realized gains (losses) with affiliated funds in compliance with Rule 17a-7 under the 1940 Act were as follows:

 

     Purchases      Sales     

Net
Realized

Gain (Loss)

  

Mid-Cap Index

   $ 41,765,264      $ 16,942,694      $ (9,963,871 ) 

Small/Mid-Cap Index

     5,588,823        7,418,218        3,499,386  

Total U.S. Stock Market Index

     11,891,693        1,993,869        (742,693 ) 

 

7.

PURCHASES AND SALES

For the year ended July 31, 2020, purchases and sales of investments, excluding short-term securities, were as follows:

 

    

Mid-Cap

Index

      Small/Mid-Cap
Index		      Total U.S.
Stock Market Index		  

Purchases

   $ 387,345,880      $ 125,557,096      $ 222,412,887  

Sales

     299,906,394        67,067,602        169,169,207  

 

8.

INCOME TAX INFORMATION

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.

Each Fund files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on each Fund’s U.S. federal tax returns generally remains open for each of the four years ended July 31, 2020. The statutes of limitations on each Fund’s state and local tax returns may remain open for an additional year depending upon the jurisdiction.

Management has analyzed tax laws and regulations and their application to the Funds as of July 31, 2020, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.

US GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. As of period end, the following permanent differences attributable to certain deemed distributions were reclassified to the following accounts:

 

     Mid-Cap Index     Small/Mid-Cap Index     Total U.S.
Stock Market Index		  

Paid-in capital

   $ 1,773,240     $ 233,401     $ —  

Accumulated earnings (loss)

     (1,773,240 )      (233,401 )      —  

The tax character of distributions paid was as follows:

 

             Mid-Cap Index  (a)      Small/Mid-Cap Index  (a)      Total U.S.
Stock Market Index		  

Ordinary income

     07/31/20      $ 21,172,644      $ 4,189,730      $ 23,807,951  
    07/31/19        26,635,376        3,799,588        20,849,509  

Long-term capital gains

     07/31/20        27,977,582        1,616,779        931,568  
    07/31/19        10,490,258        3,814,064        1,166,772  
    

 

 

     

 

 

     

 

 

  

Total

     07/31/20      $ 49,150,226      $ 5,806,509      $ 24,739,519  
    

 

 

     

 

 

     

 

 

  
    07/31/19      $ 37,125,634      $ 7,613,652      $ 22,016,281  
    

 

 

     

 

 

     

 

 

  

 

  (a) 

Distribution amounts may include a portion of the proceeds from redeemed shares

 

As of period end, the tax components of accumulated earnings (loss) were as follows:

 

     Mid-Cap Index     Small/Mid-Cap Index      Total U.S.
Stock Market Index		  

Undistributed ordinary income

   $ 1,222,651     $ 2,466,641      $ 1,618,643  

Undistributed long-term capital gains

     20,705,170       7,530,943        —  

Net unrealized gains (losses)(a)

     205,504,592       10,400,940        333,633,389  

Qualified late-year losses(b).

     (7,070,275 )      —        (178,626 ) 
 

 

 

    

 

 

     

 

 

  
  $ 220,362,138     $ 20,398,524      $ 335,073,406  
 

 

 

    

 

 

     

 

 

  

 

 

NOTES TO FINANCIAL STATEMENTS

   93

Notes to Financial Statements  (continued)

 

  (a) 

The difference between book-basis and tax-basis net unrealized gains (losses) was attributable primarily to the tax deferral of losses on wash sales, the realization for tax purposes of unrealized gains on investments in passive foreign investment companies, the realization for tax purposes of unrealized gains/losses on certain futures contracts, the characterization of corporate actions and the timing and recognitiion of partnership income.

 
  (b)The

Fund has elected to defer certain qualified late-year losses and recognize such losses in the next taxable year.

 

As of July 31, 2020, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:

 

     Mid-Cap Index     Small/Mid-Cap Index     Total U.S.
Stock Market Index		  

Tax cost

   $ 1,023,191,246     $ 269,755,616     $ 923,081,404  
 

 

 

    

 

 

    

 

 

  

Gross unrealized appreciation

   $ 312,618,382     $ 44,144,141     $ 425,383,629  

Gross unrealized depreciation

     (107,113,791 )      (33,743,201 )      (91,750,240 ) 
 

 

 

    

 

 

    

 

 

  

Net unrealized appreciation (depreciation)

   $ 205,504,591     $ 10,400,940     $ 333,633,389  
 

 

 

    

 

 

    

 

 

  

 

9.

BANK BORROWINGS

The Trust, on behalf of the Funds, along with certain other funds managed by the Manager and its affiliates (“Participating Funds”), is a party to a 364-day, $2.25 billion credit agreement with a group of lenders. Under this agreement, the Funds may borrow to fund shareholder redemptions. Excluding commitments designated for certain individual funds, the Participating Funds, including the Funds, can borrow up to an aggregate commitment amount of $1.75 billion at any time outstanding, subject to asset coverage and other limitations as specified in the agreement. The credit agreement has the following terms: a fee of 0.10% per annum on unused commitment amounts and interest at a rate equal to the higher of (a) one-month LIBOR (but, in any event, not less than 0.00%) on the date the loan is made plus 0.80% per annum or (b) the Fed Funds rate (but, in any event, not less than 0.00%) in effect from time to time plus 0.80% per annum on amounts borrowed. The agreement expires in April 2021 unless extended or renewed. These fees were allocated among such funds based upon portions of the aggregate commitment available to them and relative net assets of Participating Funds. During the year ended July 31, 2020, the Funds did not borrow under the credit agreement.

 

10.

PRINCIPAL RISKS

In the normal course of business, certain Funds invest in securities or other instruments and may enter into certain transactions, and such activities subject each 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 and 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 each Fund is subject.

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.

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 each 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 a Fund could receive upon the sale of any particular portfolio investment may differ from a 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 may significantly impact the resulting fair value and therefore a Fund’s results of operations. As a result, the price received upon the sale of an investment may be less than the value ascribed by a Fund, and a Fund could realize a greater than expected loss or lesser than expected gain upon the sale of the investment. A Fund’s ability to value its investments may also be impacted by technological issues and/or errors by pricing services or other third party service providers.

An outbreak of respiratory disease caused by a novel coronavirus has developed into a global pandemic and has resulted in closing borders, quarantines, disruptions to supply chains and customer activity, as well as general concern and uncertainty. The impact of this pandemic, and other global health crises that may arise in the future, could affect the economies of many nations, individual companies and the market in general in ways that cannot necessarily be foreseen at the present time. This pandemic may result in substantial market volatility and may adversely impact the prices and liquidity of a fund’s investments. The duration of this pandemic and its effects cannot be determined with certainty.

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. The Funds manage counterparty credit risk by entering into transactions only with counterparties that the Manager believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Funds to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Funds’ exposure to

 

 

94  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements  (continued)

 

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: As of period end, Total U.S. Stock Market Index invested a significant portion of its assets in securities in the Information Technology sector. Changes in economic conditions affecting such sector would have a greater impact on the Fund and could affect the value, income and/or liquidity of positions in such securities.

LIBOR Transition Risk: The United Kingdom’s Financial Conduct Authority announced a phase out of the London Interbank Offered Rate (“LIBOR”) by the end of 2021, and it is expected that LIBOR will cease to be published after that time. The Funds may be exposed to financial instruments tied to LIBOR to determine payment obligations, financing terms, hedging strategies or investment value. The transition process away from LIBOR might lead to increased volatility and illiquidity in markets for, and reduce the effectiveness of new hedges placed against, instruments whose terms currently include LIBOR. The ultimate effect of the LIBOR transition process on the Funds is uncertain.

 

11.

CAPITAL SHARE TRANSACTIONS

Transactions in capital shares for each class were as follows:

 

     Year Ended
07/31/20		     Year Ended
07/31/19		  
Mid-Cap Index   Shares     Amount     Shares     Amount  

Institutional

        

Shares sold

     12,015,763     $ 110,811,136       19,591,728     $ 191,253,439  

Shares issued in reinvestment of distributions

     822,079       8,842,138       765,655       7,512,799  

Shares redeemed

     (19,230,870 )      (175,534,405 )      (14,441,003 )      (143,870,600 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

     (6,393,028 )    $ (55,881,131 )      5,916,380     $ 54,895,638  
 

 

 

    

 

 

    

 

 

    

 

 

  

Investor A

        

Shares sold

     4,509,531     $ 45,935,936       4,554,939     $ 47,400,273  

Shares issued in reinvestment of distributions

     345,777       3,673,324       480,595       4,643,439  

Shares redeemed

     (5,848,604 )      (58,696,886 )      (14,483,364 )      (147,818,491 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Net decrease

     (993,296 )    $ (9,087,626 )      (9,447,830 )    $ (95,774,779 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Class K

        

Shares sold

     41,716,615     $ 428,313,072       48,296,843     $ 503,791,805  

Shares issued in reinvestment of distributions

     3,269,836       34,717,182       2,326,653       22,833,736  

Shares redeemed

     (29,201,274 )      (297,508,658 )      (17,689,266 )      (182,223,737 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

     15,785,177     $ 165,521,596       32,934,230     $ 344,401,804  
 

 

 

    

 

 

    

 

 

    

 

 

  

Total Net Increase

     8,398,853     $ 100,552,839       29,402,780     $ 303,522,663  
 

 

 

    

 

 

    

 

 

    

 

 

  

 

 

NOTES TO FINANCIAL STATEMENTS

   95

Notes to Financial Statements  (continued)

 

     Year Ended
07/31/20		     Year Ended
07/31/19		  
Small/Mid-Cap Index   Shares     Amount     Shares     Amount  

Institutional

        

Shares sold

     4,474,119     $ 49,002,046       637,030     $ 8,145,361  

Shares issued in reinvestment of distributions

     43,818       514,134       44,360       509,276  

Shares redeemed

     (658,769 )      (7,475,351 )      (812,235 )      (10,315,818 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

     3,859,168     $ 42,040,829       (130,845 )    $ (1,661,181 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Investor A

        

Shares sold

     3,230,299     $ 34,683,012       1,504,884     $ 18,715,343  

Shares issued in reinvestment of distributions

     66,811       804,318       104,559       1,193,741  

Shares redeemed

     (1,109,609 )      (13,039,273 )      (1,129,340 )      (13,862,006 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

     2,187,501     $ 22,448,057       480,103     $ 6,047,078  
 

 

 

    

 

 

    

 

 

    

 

 

  

Class K

        

Shares sold

     2,964,972     $ 35,204,189       7,573,657     $ 91,512,742  

Shares issued in reinvestment of distributions

     346,548       4,238,675       515,756       5,905,428  

Shares redeemed

     (3,704,775 )      (41,301,042 )      (2,552,278 )      (31,293,786 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

     (393,255 )    $ (1,858,178 )      5,537,135     $ 66,124,384  
 

 

 

    

 

 

    

 

 

    

 

 

  

Total Net Increase

     5,653,414     $ 62,630,708       5,886,393     $ 70,510,281  
 

 

 

    

 

 

    

 

 

    

 

 

  
     
    Year Ended
07/31/20		     Year Ended
07/31/19		  
Total U.S. Stock Market Index   Shares     Amount     Shares     Amount  

Institutional

        

Shares sold

     3,247,765     $ 45,030,817       2,499,414     $ 33,285,564  

Shares issued in reinvestment of distributions

     137,813       1,941,722       147,756       1,929,988  

Shares redeemed

     (4,135,864 )      (57,772,510 )      (2,552,364 )      (33,977,477 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

     (750,286 )    $ (10,799,971 )      94,806     $ 1,238,075  
 

 

 

    

 

 

    

 

 

    

 

 

  

Investor A

        

Shares sold

     3,477,143     $ 49,169,829       3,042,552     $ 40,135,043  

Shares issued in reinvestment of distributions

     133,886       1,889,002       129,085       1,682,445  

Shares redeemed

     (2,098,473 )      (28,566,482 )      (2,597,376 )      (35,225,419 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

     1,512,556     $ 22,492,349       574,261     $ 6,592,069  
 

 

 

    

 

 

    

 

 

    

 

 

  

Class K

        

Shares sold

     23,976,909     $ 336,767,499       25,256,478     $ 331,881,840  

Shares issued in reinvestment of distributions

     1,452,863       20,536,206       1,378,935       18,086,714  

Shares redeemed

     (22,148,282 )      (316,950,757 )      (18,119,444 )      (241,103,837 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

     3,281,490     $ 40,352,948       8,515,969     $ 108,864,717  
 

 

 

    

 

 

    

 

 

    

 

 

  

Total Net Increase

     4,043,760     $ 52,045,326       9,185,036     $ 116,694,861  
 

 

 

    

 

 

    

 

 

    

 

 

  

 

12.

SUBSEQUENT EVENTS

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

 

 

96  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Report of Independent Registered Public Accounting Firm

 

To the Board of Trustees of BlackRock FundsSM and Shareholders of

iShares Russell Mid-Cap Index Fund, iShares Russell Small/Mid-Cap Index Fund and iShares Total U.S. Stock Market Index Fund

Opinions on the Financial Statements

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of iShares Russell Mid-Cap Index Fund, iShares Russell Small/Mid-Cap Index Fund and iShares Total U.S. Stock Market Index Fund (three of the funds constituting BlackRock FundsSM, hereafter collectively referred to as the “Funds”) as of July 31, 2020, the related statements of operations for the year ended July 31, 2020, the statements of changes in net assets for each of the two years in the period ended July 31, 2020, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of July 31, 2020, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period ended July 31, 2020 and each of the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinions

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

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

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of July 31, 2020 by correspondence with the custodian, transfer agent and brokers. We believe that our audits provide a reasonable basis for our opinions.

/s/PricewaterhouseCoopers LLP

Philadelphia, Pennsylvania

September 22, 2020

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

 

 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

   97

Important Tax Information  (unaudited)

 

For corporate shareholders, the percentage of ordinary income distributions paid during the fiscal year ended July 31, 2020 that qualified for the dividends-received deduction were as follows:

 

Fund   Dividends-
Received
Deduction		  

Mid-Cap Index

     82.82 % 

Small/Mid-Cap Index

     34.45  

Total U.S. Stock Market Index

     83.89  

The following maximum amounts are hereby designated as qualified dividend income for individuals for the fiscal year ended July 31, 2020:

 

Fund   Qualified
Dividend
Income		  

Mid-Cap Index

   $ 17,467,823  

Small/Mid-Cap Index

     2,362,429  

Total U.S. Stock Market Index

     19,213,249  

The following maximum amounts are hereby designated as qualified business income for individuals for the fiscal year ended July 31, 2020:

 

Fund   Qualified
Business
Income		  

Mid-Cap Index

   $ 2,752,194  

Small/Mid-Cap Index

     662,186  

Total U.S. Stock Market Index

     1,180,482  

The following distribution amounts are hereby designated for the fiscal year ended July 31, 2020:

 

Fund   Short-Term
Capital Gain
Dividends		      20% Rate
Long-Term
Capital Gain
Dividends		  

Mid-Cap Index

   $ 2,647,793      $ 27,977,582  

Small/Mid-Cap Index

     1,337,496        1,616,779  

Total U.S. Stock Market Index

     2,449,899        931,568  

 

 

98  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Disclosure of Investment Advisory Agreement and Sub-Advisory Agreement

 

The Board of Trustees (the “Board,” the members of which are referred to as “Board Members”) of BlackRock FundsSM (the “Trust”) met on April 7, 2020 (the “April Meeting”) and May 11-13, 2020 (the “May Meeting”) to consider the approval of the investment advisory agreement (the “Advisory Agreement”) between the Trust, on behalf of iShares Russell Mid-Cap Index Fund (“Mid-Cap Index Fund”), iShares Russell Small/Mid-Cap Index Fund (“Small/Mid-Cap Index Fund”) and iShares Total U.S. Stock Market Index Fund (“Total U.S. Stock Market Index Fund” and, together with Mid-Cap Index Fund and Small/Mid-Cap Index Fund, the “Funds”), each a series of the Trust, and BlackRock Advisors, LLC (the “Manager”), the Trust’s investment advisor. The Board also considered the approval of the sub-advisory agreement (the “Sub-Advisory Agreement”) between the Manager and BlackRock Fund Advisors (the “Sub-Advisor”) with respect to each of the Funds. The Manager and the Sub-Advisor are referred to herein as “BlackRock.” The Advisory Agreement and the Sub-Advisory Agreement are referred to herein as the “Agreements.”

Activities and Composition of the Board

On the date of the May Meeting, the Board consisted of fourteen individuals, twelve of whom were not “interested persons” of the Trust as defined in the Investment Company Act of 1940, as amended (the “1940 Act”) (the “Independent Board Members”). The Board Members are responsible for the oversight of the operations of the Trust and perform the various duties imposed on the directors of investment companies by the 1940 Act. The Independent Board Members have retained independent legal counsel to assist them in connection with their duties. The Chair of the Board is an Independent Board Member. The Board has established five standing committees: an Audit Committee, a Governance and Nominating Committee, a Compliance Committee, a Performance Oversight Committee and an Ad Hoc Topics Committee, each of which is chaired by an Independent Board Member and composed of Independent Board Members (except for the Ad Hoc Topics Committee, which also has one interested Board Member).

The Agreements

Consistent with the requirements of the 1940 Act, the Board considers the continuation of the Agreements on an annual basis. The Board has four quarterly meetings per year, each typically extending for two days, and additional in-person and telephonic meetings throughout the year, as needed. While the Board also has a fifth one-day meeting to consider specific information surrounding the renewal of the Agreements, the Board’s consideration entails a year-long deliberative process whereby the Board and its committees assess BlackRock’s services to the Funds. In particular, the Board assessed, among other things, the nature, extent and quality of the services provided to each Fund by BlackRock, BlackRock’s personnel and affiliates, including (as applicable): investment management services; accounting oversight; administrative and shareholder services; oversight of each Fund’s service providers; risk management and oversight; and legal, regulatory and compliance services. Throughout the year, including during the contract renewal process, the Independent Board Members were advised by independent legal counsel, and met with independent legal counsel in various executive sessions outside of the presence of BlackRock’s management.

During the year, the Board, acting directly and through its committees, considers information that is relevant to its annual consideration of the renewal of the Agreements, including the services and support provided by BlackRock to each Fund and its shareholders. BlackRock also furnished additional information to the Board in response to specific questions from the Board. This additional information is discussed further below in the section titled “Board Considerations in Approving the Agreements.” Among the matters the Board considered were: (a) with respect to each Fund, investment performance for one-year, three-year, five-year and/or since inception periods, as applicable, against peer funds, an applicable benchmark, and other performance metrics, as applicable, as well as BlackRock senior management’s and portfolio managers’ analyses of the reasons for any outperformance or underperformance relative to the Fund’s peers, benchmarks, and other performance metrics, as applicable; (b) fees, including advisory, administration, if applicable, and other amounts paid to BlackRock and its affiliates by each Fund for services; (c) Fund operating expenses and how BlackRock allocates expenses to each Fund; (d) the resources devoted to risk oversight of, and compliance reports relating to, implementation of each Fund’s investment objective, policies and restrictions, and meeting regulatory requirements; (e) BlackRock’s and the Trust’s adherence to applicable compliance policies and procedures; (f) the nature, character and scope of non-investment management services provided by BlackRock and its affiliates and the estimated cost of such services; (g) BlackRock’s and other service providers’ internal controls and risk and compliance oversight mechanisms; (h) BlackRock’s implementation of the proxy voting policies approved by the Board; (i) the use of brokerage commissions and execution quality of portfolio transactions; (j) BlackRock’s implementation of the Trust’s valuation and liquidity procedures; (k) an analysis of management fees for products with similar investment mandates across the open-end fund, exchange-traded fund (“ETF”), closed-end fund, sub-advised mutual fund, separately managed account, collective investment trust, and institutional separate account product channels, as applicable, and the similarities and differences between these products and the services provided as compared to each Fund; (l) BlackRock’s compensation methodology for its investment professionals and the incentives and accountability it creates, along with investment professionals’ investments in the fund(s) they manage; and (m) periodic updates on BlackRock’s business.

Board Considerations in Approving the Agreements

The Approval Process: Prior to the April Meeting, the Board requested and received materials specifically relating to the Agreements. The Independent Board Members are continuously engaged in a process with their independent legal counsel and BlackRock to review the nature and scope of the information provided to the Board to better assist its deliberations. The materials provided in connection with the April Meeting included, among other things: (a) information independently compiled and prepared by Broadridge Financial Solutions, Inc. (“Broadridge”), based on either a Lipper classification or Morningstar category, regarding each Fund’s fees and expenses as compared with a peer group of funds as determined by Broadridge (“Expense Peers”) and the investment performance of each Fund as compared with a peer group of funds (“Performance Peers”); (b) information on the composition of the Expense Peers and Performance Peers, and a description of Broadridge’s methodology; (c) information on the estimated profits realized by BlackRock and its affiliates pursuant to the Agreements and a discussion of fall-out benefits to BlackRock and its affiliates; (d) a general analysis provided by BlackRock concerning investment management fees received in connection with other types of investment products, such as institutional accounts, sub-advised mutual funds, ETFs, closed-end funds, open-end funds, and separately managed accounts under similar investment mandates, as well as the performance of such other products, as applicable; (e) a review of non-management fees; (f) the existence, impact and sharing of potential economies of scale, if any, with the Funds; (g) a summary of aggregate amounts paid by each Fund to BlackRock; (h) sales and redemption data regarding each Fund’s shares; and (i) various additional information requested by the Board as appropriate regarding BlackRock’s and each Fund’s operations.

 

 

DISCLOSURE OF INVESTMENT ADVISORY AGREEMENT AND  SUB-ADVISORY AGREEMENT

   99

Disclosure of Investment Advisory Agreement and Sub-Advisory Agreement  (continued)

 

At the April Meeting, the Board reviewed materials relating to its consideration of the Agreements. As a result of the discussions that occurred during the April Meeting, and as a culmination of the Board’s year-long deliberative process, the Board presented BlackRock with questions and requests for additional information. BlackRock responded to these questions and requests with additional written information in advance of the May Meeting.

At the May Meeting, the Board concluded its assessment of, among other things: (a) the nature, extent and quality of the services provided by BlackRock; (b) the investment performance of each Fund as compared to its Performance Peers and to other metrics, as applicable; (c) the advisory fee and the estimated cost of the services and estimated profits realized by BlackRock and its affiliates from their relationship with the Funds; (d) each Fund’s fees and expenses compared to its Expense Peers; (e) the existence and sharing of potential economies of scale; (f) any fall-out benefits to BlackRock and its affiliates as a result of BlackRock’s relationship with the Funds; and (g) other factors deemed relevant by the Board Members.

The Board also considered other matters it deemed important to the approval process, such as other payments made to BlackRock or its affiliates relating to securities lending and cash management, and BlackRock’s services related to the valuation and pricing of each Fund’s portfolio holdings. The Board noted the willingness of BlackRock’s personnel to engage in open, candid discussions with the Board. The Board did not identify any particular information as determinative, and each Board Member may have attributed different weights to the various items considered.

A. Nature, Extent and Quality of the Services Provided by BlackRock: The Board, including the Independent Board Members, reviewed the nature, extent and quality of services provided by BlackRock, including the investment advisory services, and the resulting performance of each Fund. Throughout the year, the Board compared each Fund’s performance to the performance of a comparable group of mutual funds, relevant benchmark, and performance metrics, as applicable. The Board met with BlackRock’s senior management personnel responsible for investment activities, including the senior investment officers. The Board also reviewed the materials provided by each Fund’s portfolio management team discussing the Fund’s performance, investment strategies and outlook.

The Board considered, among other factors, with respect to BlackRock: the number, education and experience of investment personnel generally and each Fund’s portfolio management team; research capabilities; investments by portfolio managers in the funds they manage; portfolio trading capabilities; use of technology; commitment to compliance; credit analysis capabilities; risk analysis and oversight capabilities; and the approach to training and retaining portfolio managers and other research, advisory and management personnel. The Board also considered BlackRock’s overall risk management program, including the continued efforts of BlackRock and its affiliates to address cybersecurity risks and the role of BlackRock’s Risk & Quantitative Analysis Group. The Board engaged in a review of BlackRock’s compensation structure with respect to each Fund’s portfolio management team and BlackRock’s ability to attract and retain high-quality talent and create performance incentives.

In addition to investment advisory services, the Board considered the nature and quality of the administrative and other non-investment advisory services provided to each Fund. BlackRock and its affiliates provide the Funds with certain administrative, shareholder and other services (in addition to any such services provided to the Funds by third parties) and officers and other personnel as are necessary for the operations of the Funds. In particular, BlackRock and its affiliates provide the Funds with administrative services including, among others: (i) responsibility for disclosure documents, such as the prospectus, the summary prospectus (as applicable), the statement of additional information and periodic shareholder reports; (ii) oversight of daily accounting and pricing; (iii) responsibility for periodic filings with regulators; (iv) overseeing and coordinating the activities of third-party service providers, including, among others, each Fund’s custodian, fund accountant, transfer agent, and auditor; (v) organizing Board meetings and preparing the materials for such Board meetings; (vi) providing legal and compliance support; (vii) furnishing analytical and other support to assist the Board in its consideration of strategic issues such as the merger, consolidation or repurposing of certain open-end funds; and (viii) performing or managing administrative functions necessary for the operation of each Fund, such as tax reporting, expense management, fulfilling regulatory filing requirements, overseeing each Fund’s distribution partners, and shareholder call center and other services. The Board reviewed the structure and duties of BlackRock’s fund administration, shareholder services, and legal & compliance departments and considered BlackRock’s policies and procedures for assuring compliance with applicable laws and regulations.

B. The Investment Performance of the Funds and BlackRock: The Board, including the Independent Board Members, also reviewed and considered the performance history of each Fund. In preparation for the April Meeting, the Board was provided with reports independently prepared by Broadridge, which included an analysis of each Fund’s performance as of December 31, 2019, as compared to its Performance Peers. Broadridge ranks funds in quartiles, ranging from first to fourth, where first is the most desirable quartile position and fourth is the least desirable. In connection with its review, the Board received and reviewed information regarding the investment performance of each Fund as compared to its Performance Peers and the performance of each Fund as compared with its benchmark. The Board and its Performance Oversight Committee regularly review, and meet with Fund management to discuss, the performance of each Fund throughout the year.

In evaluating performance, the Board focused particular attention on funds with less favorable performance records. The Board also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including in particular, that notable differences may exist between a fund and its Performance Peers (for example, the investment objectives and strategies). Further, the Board recognized that the performance data reflects a snapshot of a period as of a particular date and that selecting a different performance period could produce significantly different results. The Board also acknowledged that long-term performance could be impacted by even one period of significant outperformance or underperformance, and that a single investment theme could have the ability to disproportionately affect long-term performance.

The Board noted that for the one-year period reported, the net performance of each Fund was within the tolerance range of its benchmark. The Board noted that BlackRock believes that net performance relative to the benchmark is an appropriate performance metric for each Fund, and that BlackRock has explained its rationale for this belief to the Board.

C. Consideration of the Advisory/Management Fees and the Estimated Cost of the Services and Estimated Profits Realized by BlackRock and its Affiliates from their Relationship with the Funds: The Board, including the Independent Board Members, reviewed each Fund’s contractual management fee rate compared with those of its Expense Peers. The contractual management fee rate represents a combination of the advisory fee and any administrative fees, before taking into account any reimbursements or fee waivers. The Board also compared each Fund’s total expense ratio, as well as its actual management fee rate, to those of its Expense Peers. The

 

 

100  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Disclosure of Investment Advisory Agreement and Sub-Advisory Agreement  (continued)

 

total expense ratio represents a fund’s total net operating expenses, including any 12b-1 or non-12b-1 service fees. The total expense ratio gives effect to any expense reimbursements or fee waivers, and the actual management fee rate gives effect to any management fee reimbursements or waivers. The Board considered the services provided and the fees charged by BlackRock and its affiliates to other types of clients with similar investment mandates, as applicable, including institutional accounts and sub-advised mutual funds (including mutual funds sponsored by third parties).

The Board received and reviewed statements relating to BlackRock’s financial condition. The Board reviewed BlackRock’s profitability methodology and was also provided with an estimated profitability analysis that detailed the revenues earned and the expenses incurred by BlackRock for services provided to each Fund. The Board reviewed BlackRock’s estimated profitability with respect to each Fund and other funds the Board currently oversees for the year ended December 31, 2019 compared to available aggregate estimated profitability data provided for the prior two years. The Board reviewed BlackRock’s estimated profitability with respect to certain other U.S. fund complexes managed by BlackRock and/or its affiliates. The Board reviewed BlackRock’s assumptions and methodology of allocating expenses in the estimated profitability analysis, noting the inherent limitations in allocating costs among various advisory products. The Board recognized that profitability may be affected by numerous factors including, among other things, fee waivers and expense reimbursements by BlackRock, the types of funds managed, precision of expense allocations and business mix. The Board thus recognized that calculating and comparing profitability at the individual fund level is difficult.

The Board noted that, in general, individual fund or product line profitability of other advisors is not publicly available. The Board reviewed BlackRock’s overall operating margin, in general, compared to that of certain other publicly traded asset management firms. The Board considered the differences between BlackRock and these other firms, including the contribution of technology at BlackRock, BlackRock’s expense management, and the relative product mix.

The Board considered whether BlackRock has the financial resources necessary to attract and retain high quality investment management personnel to perform its obligations under the Agreements and to continue to provide the high quality of services that is expected by the Board. The Board further considered factors including but not limited to BlackRock’s commitment of time, assumption of risk, and liability profile in servicing the Funds, including in contrast to what is required of BlackRock with respect to other products with similar investment mandates across the open-end fund, ETF, closed-end fund, sub-advised mutual fund, separately managed account, collective investment trust, and institutional separate account product channels, as applicable.

The Board noted that the contractual management fee rate of each Fund ranked in the first quartile, and that the actual management fee rate and total expense ratio of each Fund ranked in the first quartile relative to the relevant Fund’s Expense Peers. The Board also noted that BlackRock and the Board have contractually agreed to a cap on each Fund’s total expenses as a percentage of the Fund’s average daily net assets on a class-by-class basis.

D. Economies of Scale: The Board, including the Independent Board Members, considered the extent to which economies of scale might be realized as the assets of the Funds increase, including the existence of fee waivers and/or expense caps, as applicable, noting that any contractual fee waivers and contractual expense caps had been approved by the Board. In its consideration, the Board further considered the continuation and/or implementation of fee waivers and/or expense caps, as applicable. The Board also considered the extent to which each Fund benefits from such economies of scale in a variety of ways and whether there should be changes in the advisory fee rate or breakpoint structure in order to enable the Funds to more fully participate in these economies of scale. The Board considered each Fund’s asset levels and whether the current fee schedule was appropriate.

E. Other Factors Deemed Relevant by the Board Members: The Board, including the Independent Board Members, also took into account other ancillary or “fall-out” benefits that BlackRock or its affiliates may derive from BlackRock’s respective relationships with the Funds, both tangible and intangible, such as BlackRock’s ability to leverage its investment professionals who manage other portfolios and its risk management personnel, an increase in BlackRock’s profile in the investment advisory community, and the engagement of BlackRock’s affiliates as service providers to the Funds, including for administrative, distribution, securities lending and cash management services. The Board also considered BlackRock’s overall operations and its efforts to expand the scale of, and improve the quality of, its operations. The Board also noted that, subject to applicable law, BlackRock may use and benefit from third-party research obtained by soft dollars generated by certain registered fund transactions to assist in managing all or a number of its other client accounts.

In connection with its consideration of the Agreements, the Board also received information regarding BlackRock’s brokerage and soft dollar practices. The Board received reports from BlackRock which included information on brokerage commissions and trade execution practices throughout the year.

The Board noted the competitive nature of the open-end fund marketplace, and that shareholders are able to redeem their Fund shares if they believe that the pertinent Fund’s fees and expenses are too high or if they are dissatisfied with the performance of the Fund.

Conclusion

The Board, including the Independent Board Members, unanimously approved the continuation of the Advisory Agreement between the Manager and the Trust, on behalf of each Fund, for a one-year term ending June 30, 2021, and the Sub-Advisory Agreement between the Manager and the Sub-Advisor with respect to each Fund, for a one-year term ending June 30, 2021. Based upon its evaluation of all of the aforementioned factors in their totality, as well as other information, the Board, including the Independent Board Members, was satisfied that the terms of the Agreements were fair and reasonable and in the best interest of each Fund, as pertinent, and its shareholders. In arriving at its decision to approve the Agreements, the Board did not identify any single factor or group of factors as all-important or controlling, but considered all factors together, and different Board Members may have attributed different weights to the various factors considered. The Independent Board Members were also assisted by the advice of independent legal counsel in making this determination.

 

 

DISCLOSURE OF INVESTMENT ADVISORY AGREEMENT AND  SUB-ADVISORY AGREEMENT

   101

Trustee and Officer Information

 

Independent Trustees (a)
         
Name
Year of Birth (b)		   Position(s) Held
(Length of Service) (c)		   Principal Occupation(s) During Past Five Years    Number of BlackRock-Advised
Registered Investment Companies
(“RICs”)  Consisting of Investment
Portfolios (“Portfolios”) Overseen		    Public Company and Other
Investment Company
Directorships Held During
Past Five Years
Mark Stalnecker
1951		   Chair of the Board
(Since 2019) and Trustee
(Since 2015)		   Chief Investment Officer, University of Delaware from 1999 to 2013; Trustee and Chair of the Finance and Investment Committees, Winterthur Museum and Country Estate from 2005 to 2016; Member of the Investment Committee, Delaware Public Employees’ Retirement System since 2002; Member of the Investment Committee, Christiana Care Health System from 2009 to 2017; Member of the Investment Committee, Delaware Community Foundation from 2013 to 2014; Director and Chair of the Audit Committee, SEI Private Trust Co. from 2001 to 2014.    36 RICs consisting of 155 Portfolios    None
Bruce R. Bond
1946		   Trustee
(Since 2019)		   Board Member, Amsphere Limited (software) since 2018; Trustee and Member of the Governance Committee, State Street Research Mutual Funds from 1997 to 2005; Board Member of Governance, Audit and Finance Committee, Avaya Inc. (computer equipment) from 2003 to 2007.    36 RICs consisting of 155 Portfolios    None
Susan J. Carter
1956		   Trustee
(Since 2016)		   Director, Pacific Pension Institute from 2014 to 2018; Advisory Board Member, Center for Private Equity and Entrepreneurship at Tuck School of Business since 1997; Senior Advisor, Commonfund Capital, Inc. (“CCI”) (investment adviser) in 2015; Chief Executive Officer, CCI from 2013 to 2014; President & Chief Executive Officer, CCI from 1997 to 2013; Advisory Board Member, Girls Who Invest from 2015 to 2018 and Board Member thereof since 2018; Advisory Board Member, Bridges Fund Management since 2016; Trustee, Financial Accounting Foundation since 2017; Practitioner Advisory Board Member, Private Capital Research Institute (“PCRI”) since 2017; Lecturer in the Practice of Management, Yale School of Management since 2019.    36 RICs consisting of 155 Portfolios    None
Collette Chilton
1958		   Trustee
(Since 2015)		   Chief Investment Officer, Williams College since 2006; Chief Investment Officer, Lucent Asset Management Corporation from 1998 to 2006.    36 RICs consisting of 155 Portfolios    None
Neil A. Cotty
1954		   Trustee
(Since 2016)		   Bank of America Corporation from 1996 to 2015, serving in various senior finance leadership roles, including Chief Accounting Officer from 2009 to 2015, Chief Financial Officer of Global Banking, Markets and Wealth Management from 2008 to 2009, Chief Accounting Officer from 2004 to 2008, Chief Financial Officer of Consumer Bank from 2003 to 2004, Chief Financial Officer of Global Corporate Investment Bank from 1999 to 2002.    36 RICs consisting of 155 Portfolios    None
Lena G. Goldberg
1949		   Trustee
(Since 2019)		   Senior Lecturer, Harvard Business School, since 2008; Director, Charles Stark Draper Laboratory, Inc. since 2013; FMR LLC/Fidelity Investments (financial services) from 1996 to 2008, serving in various senior roles including Executive Vice President — Strategic Corporate Initiatives and Executive Vice President and General Counsel; Partner, Sullivan & Worcester LLP from 1985 to 1996 and Associate thereof from 1979 to 1985.    36 RICs consisting of 155 Portfolios    None

 

 

102  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Trustee and Officer Information  (continued)

 

Independent Trustees (a) (continued)

         
Name
Year of Birth (b)		   Position(s) Held
(Length of Service) (c)		   Principal Occupation(s) During Past Five Years    Number of BlackRock-Advised
Registered Investment Companies
(“RICs”)  Consisting of Investment
Portfolios (“Portfolios”) Overseen		    Public Company and Other
Investment Company
Directorships Held During
Past Five Years
Henry R. Keizer
1956		   Trustee
(Since 2019)		   Director, Park Indemnity Ltd. (captive insurer) since 2010; Director, MUFG Americas Holdings Corporation and MUFG Union Bank, N.A. (financial and bank holding company) from 2014 to 2016; Director, American Institute of Certified Public Accountants from 2009 to 2011; Director, KPMG LLP (audit, tax and advisory services) from 2004 to 2005 and 2010 to 2012; Director, KPMG International in 2012, Deputy Chairman and Chief Operating Officer thereof from 2010 to 2012 and U.S. Vice Chairman of Audit thereof from 2005 to 2010; Global Head of Audit, KPMGI (consortium of KPMG firms) from 2006 to 2010; Director, YMCA of Greater New York from 2006 to 2010.    36 RICs consisting of 155 Portfolios    Hertz Global Holdings (car rental); Montpelier Re Holdings, Ltd. (publicly held property and casualty reinsurance) from 2013 until 2015; WABCO (commercial vehicle safety systems); Sealed Air Corp. (packaging)
Cynthia A. Montgomery
1952		   Trustee
(Since 2007)		   Professor, Harvard Business School since 1989.    36 RICs consisting of 155 Portfolios    Newell Rubbermaid, Inc. (manufacturing)
Donald C. Opatrny
1952		   Trustee
(Since 2019)		   Trustee, Vice Chair, Member of the Executive Committee and Chair of the Investment Committee, Cornell University since 2004; President, Trustee and Member of the Investment Committee, The Aldrich Contemporary Art Museum from 2007 to 2014; Member of the Board and Investment Committee, University School from 2007 to 2018; Member of the Investment Committee, Mellon Foundation from 2009 to 2015; Trustee, Artstor (a Mellon Foundation affiliate) from 2010 to 2015; President and Trustee, the Center for the Arts, Jackson Hole from 2011 to 2018; Director, Athena Capital Advisors LLC (investment management firm) since 2013; Trustee and Chair of the Investment Committee, Community Foundation of Jackson Hole since 2014; Member of Affordable Housing Supply Board of Jackson, Wyoming since 2018; Member, Investment Funds Committee, State of Wyoming since 2017; Trustee, Phoenix Art Museum since 2018; Trustee, Arizona Community Foundation and Member of Investment Committee since 2020.    36 RICs consisting of 155 Portfolios    None
Joseph P. Platt
1947		   Trustee
(Since 2007)		   General Partner, Thorn Partners, LP (private investments) since 1998; Director, WQED Multi-Media (public broadcasting not-for-profit) since 2001; Chair, Basic Health International (non-profit) since 2015.    36 RICs consisting of 155 Portfolios    Greenlight Capital Re, Ltd. (reinsurance company); Consol Energy Inc.
Kenneth L. Urish
1951		   Trustee
(Since 2007)		   Managing Partner, Urish Popeck & Co., LLC (certified public accountants and consultants) since 1976; Past-Chairman of the Professional Ethics Committee of the Pennsylvania Institute of Certified Public Accountants and Committee Member thereof since 2007; Member of External Advisory Board, The Pennsylvania State University Accounting Department since founding in 2001; Principal, UP Strategic Wealth Investment Advisors, LLC since 2013; Trustee, The Holy Family Institute from 2001 to 2010; President and Trustee, Pittsburgh Catholic Publishing Associates from 2003 to 2008; Director, Inter-Tel from 2006 to 2007.    36 RICs consisting of 155 Portfolios    None
Claire A. Walton
1957		   Trustee
(Since 2016)		   Chief Operating Officer and Chief Financial Officer of Liberty Square Asset Management, LP from 1998 to 2015; General Partner of Neon Liberty Capital Management, LLC since 2003; Director, Boston Hedge Fund Group from 2009 to 2018; Director, Woodstock Ski Runners since 2013; Director, Massachusetts Council on Economic Education from 2013 to 2015.    36 RICs consisting of 155 Portfolios    None

 

 

TRUSTEE AND OFFICER INFORMATION

   103

Trustee and Officer Information  (continued)

 

Interested Trustees (a)(d)

         
Name
Year of Birth (b)		   Position(s) Held
(Length of Service) (c)		   Principal Occupation(s) During Past Five Years    Number of BlackRock-Advised
Registered Investment Companies
(“RICs”)  Consisting of Investment
Portfolios (“Portfolios”) Overseen		    Public Company and Other
Investment Company
Directorships Held During
Past Five Years
Robert Fairbairn
1965		   Trustee
(Since 2018)		   Vice Chairman of BlackRock, Inc. since 2019; Member of BlackRock’s Global Executive and Global Operating Committees; Co-Chair of BlackRock’s Human Capital Committee; Senior Managing Director of BlackRock, Inc. from 2010 to 2019; oversaw BlackRock’s Strategic Partner Program and Strategic Product Management Group from 2012 to 2019; Member of the Board of Managers of BlackRock Investments, LLC from 2011 to 2018; Global Head of BlackRock’s Retail and iShares® businesses from 2012 to 2016.    122 RICs consisting of 265 Portfolios    None
John M. Perlowski (e)
1964		   Trustee (Since 2015) and President and Chief Executive Officer
(Since 2010)		   Managing Director of BlackRock, Inc. since 2009; Head of BlackRock Global Accounting and Product Services since 2009; Advisory Director of Family Resource Network (charitable foundation) since 2009.    123 RICs consisting of 266 Portfolios    None

(a) The address of each Trustee is c/o BlackRock, Inc., 55 East 52nd Street, New York, New York 10055.

(b) Independent Trustees serve until their resignation, retirement, removal or death, or until December 31 of the year in which they turn 75. The Board may determine to extend the terms of Independent Trustees on a case-by-case basis, as appropriate.

(c) Following the combination of Merrill Lynch Investment Managers, L.P. (“MLIM”) and BlackRock, Inc. in September 2006, the various legacy MLIM and legacy BlackRock fund boards were realigned and consolidated into three new fund boards in 2007. Furthermore, effective January 1, 2019, three BlackRock Fund Complexes were realigned and consolidated into two BlackRock Fund Complexes. As a result, although the chart shows the year that each Independent Trustee joined the Board, certain Independent Trustees first became members of the boards of other BlackRock-advised Funds, legacy MLIM funds or legacy BlackRock funds as follows: Bruce R. Bond, 2005; Cynthia A. Montgomery, 1994; Joseph P. Platt, 1999; Kenneth L. Urish, 1999; Lena G. Goldberg, 2016; Henry R. Keizer, 2016; Donald C. Opatrny, 2015.

(d) Mr. Fairbairn and Mr. Perlowski are both “interested persons,” as defined in the 1940 Act, of the Trust based on their positions with BlackRock, Inc. and its affiliates. Mr. Fairbairn and Mr. Perlowski are also board members of the BlackRock Fixed-Income Complex.

(e) Mr. Perlowski is also a trustee of the BlackRock Credit Strategies Fund.

 

 

104  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Trustee and Officer Information  (continued)

 

Officers Who Are Not Trustees (a)

     
Name
Year of Birth (b)		    Position(s) Held
(Length of Service)		    Principal Occupation(s) During Past Five Years
Thomas Callahan
1968		    Vice President
(Since 2016)		    Managing Director of BlackRock, Inc. since 2013; Member of the Board of Managers of BlackRock Investments, LLC (principal underwriter) since 2019 and Managing Director thereof since 2017; Head of BlackRock’s Global Cash Management Business since 2016; Co-Head of the Global Cash Management Business from 2014 to 2016; Deputy Head of the Global Cash Management Business from 2013 to 2014; Member of the Cash Management Group Executive Committee since 2013; Chief Executive Officer of NYSE Liffe U.S. from 2008 to 2013.
Jennifer McGovern
1977		    Vice President
(Since 2014)		    Managing Director of BlackRock, Inc. since 2016; Director of BlackRock, Inc. from 2011 to 2015; Head of Americas Product Development and Governance for BlackRock’s Global Product Group since 2019; Head of Product Structure and Oversight for BlackRock’s U.S. Wealth Advisory Group from 2013 to 2019.
Neal J. Andrews
1966		    Chief Financial Officer
(Since 2007)		    Chief Financial Officer of the iShares® exchange traded funds from 2019 to 2020; Managing Director of BlackRock, Inc. since 2006.
Jay M. Fife
1970		    Treasurer
(Since 2007)		    Managing Director of BlackRock, Inc. since 2007.
Charles Park
1967		    Chief Compliance Officer
(Since 2014)		    Anti-Money Laundering Compliance Officer for certain BlackRock-advised Funds from 2014 to 2015; 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; Principal of and Chief Compliance Officer for iShares® Delaware Trust Sponsor LLC since 2012 and BlackRock Fund Advisors (“BFA”) since 2006; Chief Compliance Officer for the BFA-advised iShares® exchange traded funds since 2006; Chief Compliance Officer for BlackRock Asset Management International Inc. since 2012.
Lisa Belle
1968		    Anti-Money Laundering
Compliance Officer
(Since 2019)		    Managing Director of BlackRock, Inc. since 2019; Global Financial Crime Head for Asset and Wealth Management of JP Morgan from 2013 to 2019; Managing Director of RBS Securities from 2012 to 2013; Head of Financial Crimes for Barclays Wealth Americas from 2010 to 2012.
Janey Ahn
1975		    Secretary
(Since 2019)		    Managing Director of BlackRock, Inc. since 2018; Director of BlackRock, Inc. from 2009 to 2017.

(a) The address of each Officer is c/o BlackRock, Inc., 55 East 52nd Street, New York, New York 10055.

(b) Officers of the Trust serve at the pleasure of the Board.

 

Further information about the Trust’s Trustees and Officers is available in the Trust’s Statement of Additional Information, which can be obtained without charge by calling (800) 441-7762.

 

Investment Manager

BlackRock Advisors, LLC

Wilmington, DE 19809

Sub-Adviser

BlackRock Fund Advisors

San Francisco, CA 94105

Accounting Service Provider

State Street Bank and Trust Company

Boston, MA 02111

Transfer Agent

BNY Mellon Investment Servicing (US) Inc.

Wilmington, DE 19809

Distributor

BlackRock Investments, LLC

New York, NY 10022

Independent Registered Public Accounting Firm

PricewaterhouseCoopers LLP

Philadelphia, PA 19103

Legal Counsel

Sidley Austin LLP

New York, NY 10019

Address of the Trust

100 Bellevue Parkway

Wilmington, DE 19809

 

 

 

TRUSTEE AND OFFICER INFORMATION

   105

Additional Information

 

General Information

Householding

The Funds will mail only one copy of shareholder documents, including prospectuses, annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call the Funds at (800) 441-7762.

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.

Availability of Proxy Voting Policies and Procedures

A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available upon request and without charge (1) by calling (800) 441-7762; (2) at blackrock.com; and (3) on the SEC’s website at sec.gov.

Availability of Proxy Voting Record

Information about how the Funds voted proxies relating to securities held in the Funds’ portfolios during the most recent 12-month period ended June 30 is available upon request and without charge (1) at blackrock.com or by calling (800) 441-7762 and (2) on the SEC’s website at sec.gov.

BlackRock’s Mutual Fund Family

BlackRock offers a diverse lineup of open-end mutual funds crossing all investment styles and managed by experts in equity, fixed-income and tax-exempt investing. Visit blackrock.com for more information.

Shareholder Privileges

Account Information

Call us at (800) 441-7762 from 8:00 AM to 6:00 PM ET on any business day to get information about your account balances, recent transactions and share prices. You can also visit blackrock.com for more information.

Automatic Investment Plans

Investor class shareholders who want to invest regularly can arrange to have $50 or more automatically deducted from their checking or savings account and invested in any of the BlackRock funds.

Systematic Withdrawal Plans

Investor class shareholders can establish a systematic withdrawal plan and receive periodic payments of $50 or more from their BlackRock funds, as long as their account balance is at least $10,000.

Retirement Plans

Shareholders may make investments in conjunction with Traditional, Rollover, Roth, Coverdell, Simple IRAs, SEP IRAs and 403(b) Plans.

 

 

106  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Additional Information  (continued)

 

BlackRock Privacy Principles

BlackRock is committed to maintaining the privacy of its current and former fund investors and individual clients (collectively, “Clients”) and to safeguarding their non-public personal information. The following information is provided to help you understand what personal information BlackRock collects, how we protect that information and why in certain cases we share such information with select parties.

If you are located in a jurisdiction where specific laws, rules or regulations require BlackRock to provide you with additional or different privacy-related rights beyond what is set forth below, then BlackRock will comply with those specific laws, rules or regulations.

BlackRock obtains or verifies personal non-public information from and about you from different sources, including the following: (i) information we receive from you or, if applicable, your financial intermediary, on applications, forms or other documents; (ii) information about your transactions with us, our affiliates, or others; (iii) information we receive from a consumer reporting agency; and (iv) from visits to our websites.

BlackRock does not sell or disclose to non-affiliated third parties any non-public personal information about its Clients, except as permitted by law or as is necessary to respond to regulatory requests or to service Client accounts. These non-affiliated third parties are required to protect the confidentiality and security of this information and to use it only for its intended purpose.

We may share information with our affiliates to service your account or to provide you with information about other BlackRock products or services that may be of interest to you. In addition, BlackRock restricts access to non-public personal information about its Clients to those BlackRock employees with a legitimate business need for the information. BlackRock maintains physical, electronic and procedural safeguards that are designed to protect the non-public personal information of its Clients, including procedures relating to the proper storage and disposal of such information.

Glossary of Terms Used in this Report

 

Portfolio Abbreviations
ADR    American Depositary Receipts
AGC    Assured Guarantee Corp.
AMBAC    American Municipal Bond Assurance Corp.
CVR    Contingent Value Rights
ETF    Exchange Traded Fund
REIT    Real Estate Investment Trust
S&P    Standard and Poor’s

 

 

ADDITIONAL INFORMATION / GLOSSARY OF TERMS USED IN THIS REPORT

   107

 

Want to know more?

blackrock.com    |    800-441-7762

This report is intended for current holders. It is not authorized for use as an offer of sale or a solicitation of an offer to buy shares of a Fund unless preceded or accompanied by the Fund’s current prospectus. Past performance results shown in this report should not be considered a representation of future performance. Investment returns and principal value of shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Statements and other information herein are as dated and are subject to change.

INDEX5-7/20-AR

 

 

LOGO    LOGO

 

LOGO   JULY 31, 2020

 

  

2020 Annual Report

 

BlackRock FundsSM

 

·  

iShares Edge MSCI Min Vol EAFE Index Fund

·  

iShares Edge MSCI Min Vol USA Index Fund

·  

iShares Edge MSCI Multifactor Intl Index Fund

·  

iShares Edge MSCI Multifactor USA Index Fund

 

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of each Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from BlackRock or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.

You may elect to receive all future reports in paper free of charge. If you hold accounts directly with BlackRock, you can call (800) 537-4942 to inform BlackRock that you wish to continue receiving paper copies of your shareholder reports. If you hold accounts through a financial intermediary, you can follow the instructions included with this disclosure, if applicable, or contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. Please note that not all financial intermediaries may offer this service. Your election to receive reports in paper will apply to all funds advised by BlackRock Advisors, LLC, BlackRock Fund Advisors or their affiliates, or all funds held with your financial intermediary, as applicable.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive electronic delivery of shareholder reports and other communications by: (i) accessing the BlackRock website at blackrock.com/edelivery and logging into your accounts, if you hold accounts directly with BlackRock, or (ii) contacting your financial intermediary, if you hold accounts through a financial intermediary. Please note that not all financial intermediaries may offer this service.

 

Not FDIC Insured • May Lose Value • No Bank Guarantee

The Markets in Review

Dear Shareholder,

The last 12 months have been a time of sudden change in global financial markets, as a long period of growth and positive returns was interrupted in early 2020 by the emergence and spread of the coronavirus. For the first half of the reporting period, U.S. equities and bonds both delivered impressive returns, despite fears and doubts about the economy that were ultimately laid to rest with unprecedented monetary stimulus and a sluggish yet resolute performance from the U.S. economy. But as the threat from the coronavirus (or “COVID-19”) became more apparent throughout February and March 2020, countries around the world took economically disruptive countermeasures, causing a global recession and a sharp fall in equity prices. While markets have since recovered most of these losses as countries around the world adapt to life with the virus, lingering uncertainty about the depth and duration of the pandemic and an uptick in global infection rates tempered optimism late in the reporting period.

Returns for most securities were robust for the first half of the reporting period, as investors began to realize that the U.S. economy was maintaining the modest yet steady growth that had characterized this economic cycle. However, once stay-at-home orders and closures of non-essential businesses became widespread, many workers were laid off and unemployment claims spiked. The subsequent rapid decline in equity prices was followed by a slow recovery, and some economic indicators began to improve. U.S. large-capitalization stocks, which are often considered more resilient than smaller companies during market turbulence, advanced significantly. International equities from developed economies ended the 12-month reporting period with negative performance, while emerging market stocks posted a positive return.

The performance of different types of fixed-income securities diverged substantially due to a reduced investor appetite for risk. Treasuries benefited from the risk-off environment, and posted healthy returns, as the 10-year U.S. Treasury yield (which is inversely related to bond prices) fell to an all-time low. Investment-grade corporate bonds also delivered solid returns, while high-yield corporate returns were more modest due to credit concerns.

The U.S. Federal Reserve (the “Fed”) reduced interest rates three times in 2019, to support slowing economic growth. After the coronavirus outbreak, the Fed instituted two emergency rate cuts, pushing short-term interest rates close to zero. To stabilize credit markets, the Fed also implemented a new bond-buying program, as did several other central banks around the world, including the European Central Bank and the Bank of Japan.

Looking ahead, while coronavirus-related disruptions have clearly hindered worldwide economic growth, we believe that the global expansion is likely to continue once the outbreak subsides. Several risks remain, however, including a potential resurgence of the coronavirus amid loosened restrictions, policy fatigue among governments already deep into deficit spending, and structural damage to the financial system from lengthy economic interruptions.

Overall, we favor a moderately positive stance toward risk, and in particular toward credit given the extraordinary central bank measures taken in recent months. This support extends beyond investment-grade corporates and into high-yield, leading to attractive opportunities throughout the credit market. We believe that both U.S. Treasuries and sustainable investments can help provide portfolio resilience, and the disruption created by the coronavirus appears to be accelerating the shift toward sustainable investments. We remain neutral on equities overall while favoring European stocks, which are poised for cyclical upside as re-openings continue.

In this environment, our view is that investors need to think globally, extend their scope across a broad array of asset classes, and be nimble as market conditions change. We encourage you to talk with your financial advisor and visit blackrock.com for further insight about investing in today’s markets.

Sincerely,

 

LOGO

Rob Kapito

President, BlackRock Advisors, LLC

LOGO

Rob Kapito

President, BlackRock Advisors, LLC

 

Total Returns as of July 31, 2020
     6-month   12-month

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

   2.42%   11.96%

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

   (7.61)   (4.59)

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

   (7.34)   (1.67)

Emerging market equities
(MSCI Emerging Markets Index)

   3.08   6.55

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

   0.48   1.46

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

   9.92   15.55

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

   5.69   10.12

Tax-exempt municipal bonds
(S&P Municipal Bond Index)

   1.75   4.89

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

   0.62   4.07
Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.
 

 

 

2    THIS PAGE IS NOT PART OF YOUR FUND REPORT

Table of Contents

 

      Page  

The Markets in Review

      2  

Annual Report:

   

Fund Summaries

      4  

About Fund Performance

      16  

Disclosure of Expenses

      16  

Derivative Financial Instruments

      16  

Financial Statements:

   

Schedule of Investments

      17  

Statements of Assets and Liabilities

      33  

Statements of Operations

      34  

Statements of Changes in Net Assets

      35  

Financial Highlights

      37  

Notes to Financial Statements

      45  

Report of Independent Registered Public Accounting Firm

      56  

Important Tax Information

     57  

Disclosure of Investment Advisory Agreement and Sub-Advisory Agreement

      58  

Trustee and Officer Information

     62  

Additional Information

      66  

Glossary of Terms Used in this Report

      67  

 

LOGO

 

 

          3  

Fund Summary  as of July 31, 2020    iShares Edge MSCI Min Vol EAFE Index Fund

 

Investment Objective

iShares Edge MSCI Min Vol EAFE Index Fund’s (the “Fund”) investment objective is to seek to track the investment results of an index composed of developed market equities that, in the aggregate, have lower volatility characteristics relative to the broader developed equity markets, excluding the United States and Canada.

Portfolio Management Commentary

How did the Fund perform?

For the 12-month period ended July 31, 2020, the Fund’s Institutional Shares returned (2.54)%, while Class K Shares returned (2.49)%. The benchmark MSCI EAFE Minimum Volatility (USD) Index (the “Index”) returned (3.51)% for the same period.

Returns for the Fund’s respective share classes differ from the Index based on individual share-class expenses.

Describe the market environment.

In the third quarter of 2019 within the eurozone, Germany underperformed while Belgium was the best-performing country due to an outsized gain in materials giant Umicore. Eurozone economic activity showed signs of synchronized deceleration. This prompted an aggressive response from the European Central Bank (“ECB”), which announced a stimulus package that included a rate cut, resumption of quantitative easing, and a two-tier excess liquidity system for banks. Simultaneously, the ECB cut both its growth and inflation forecasts, and lowered its forward guidance. In the United Kingdom, continued Brexit uncertainty drove volatility throughout the quarter ahead of the October 31 deadline. Parliament passed legislation that forced the government to ask for an extension if it could not reach a deal with the European Union (“EU”), which buoyed the sterling. Separately, the Bank of England remained on hold despite economic weakness.

In the Asia-Pacific region, Japanese equities outperformed despite deteriorating economic conditions and an impending sales-tax hike. However, Japanese Prime Minister Abe and U.S. President Donald Trump reached a limited trade agreement that removed the threat of tariffs on Japan’s auto exports for the time being. Elsewhere, Hong Kong underperformed amid mounting political unrest.

By the fourth quarter of 2019, the United Kingdom outperformed amid a dense quarter of Brexit developments. Prime Minister Boris Johnson was able to agree to a new Brexit deal with the EU in October, but the October 31 deadline was pushed back to January 31, 2020 due to a stalemate in Parliament. On continental Europe, both France and Germany performed well. Economic activity in Europe was better than in recent quarters, with the perceived easing in trade tensions — both between the United States and China, and the United States and EU — contributing to positive sentiment. Monetary policy remained accommodative, and the ECB resumed balance sheet expansion. Despite the easy monetary policy, the incremental increase in economic activity helped foster positive expectations.

In the Asia-Pacific region, Japan, Hong Kong and Australia recorded positive gains but ongoing tensions in Hong Kong and unimpressive growth out of China weighed on the region.

Developed markets declined significantly in the first quarter of 2020 as all eleven of the Global Industry Classification Standard (“GICS”) sectors tumbled in the quarter. Health care outperformed in the asset class while traditional defensive sectors such as consumer staples and utilities fared better than other sectors. Energy was the worst-performing sector in the first three months of 2020.

In the Asia Pacific region, Japan outperformed relatively in the first quarter of 2020 while the country is likely to see a technical recession after a contraction in its fourth quarter of 2019 gross domestic product growth due to a sales tax hike and as the coronavirus pandemic hit Japan’s tourism and trade in the first quarter of 2020. Both Singapore and Australia suffered from record drawdowns on coronavirus fears during the quarter.

On continental Europe, Italy and Spain were among the worst performers in the first quarter of 2020 as the coronavirus outbreak in Italy intensified in late February and virus-related measures started to disrupt economic activities in the broader region with both France and Germany also weighing on the eurozone equity market. The globally integrated European economy is particularly vulnerable to global supply chain disruptions, posing downside risks to growth. Macro data across the region already showed a significant negative impact, as export orders sharply declined and the Eurozone March 2020 final manufacturing Purchasing Managers’ Index came in at 44.5 versus the 44.6 estimated, its lowest since July 2012.

In the United Kingdom, business sentiment improved in the first two months of 2020, before the spread of coronavirus started to rattle its economy, pushing U.K. equities down in March 2020.

Developed markets advanced in the second quarter of 2020, amid strong fiscal and monetary stimulus, combined with the reopening of economies.

The ECB continued its quantitative easing with a novel and flexible Pandemic Emergency Purchase Programme that allows the ECB to buy government debt out of proportion to euro area country shareholdings in the bank. Meanwhile, the targeted long-term refinancing operation provided a record boost to the ECB balance.

On continental Europe, Germany outperformed in the second quarter of 2020 with stronger government support while Italy, Switzerland and Spain lagged. Shares in the United Kingdom underperformed the region, with lower quarterly gains.

In the Asia-Pacific region, Australia led strong gains after suffering from record drawdowns on coronavirus fears in the previous quarter. Hong Kong and Singapore posted positive returns but underperformed in the region.

From a sector perspective, all GICS sectors rallied in the second quarter of 2020. Information technology and materials outperformed in the asset class while traditional defensive sectors such as consumer staples and real estate fell behind in the rally. Energy remained the worst-performing sector.

 

 

4  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Fund Summary  as of July 31, 2020 (continued)    iShares Edge MSCI Min Vol EAFE Index Fund

 

Describe recent portfolio activity.

During the period, as changes were made to the composition of the Index, the Fund purchased and sold securities to maintain its objective of replicating the risks and return of the Index.

Describe portfolio positioning at period end.

The Fund remains positioned to match the risk characteristics of the Index, irrespective of the market’s future direction.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

TOTAL RETURN BASED ON A $10,000 INVESTMENT

 

LOGO

 

(a) 

Assuming transaction costs and other operating expenses, including investment advisory fees, if any.

(b) 

The Fund generally invests at least 80% of its assets, plus the amount of any borrowing for investment purposes, in securities of the MSCI EAFE Minimum Volatility (USD) Index and in investments that have economic characteristics that are substantially similar to the component securities of the MSCI EAFE Minimum Volatility (USD) Index (i.e. depositary receipts representing securities of the MSCI EAFE Minimum Volatility (USD) Index).

(c) 

An index that aims to reflect the performance characteristics of a minimum variance strategy applied to the large- and mid-cap equity universe across developed markets around the world excluding the United States and Canada. The index is calculated by optimizing the MSCI EAFE Index, its parent index, in USD for the lowest absolute risk (within a given set of constraints).

(d) 

Commencement of operations.

Performance Summary for the Period Ended July 31, 2020

 

                Average Annual Total Returns (a)  
    

6-Month

Total Returns

            1 Year    

Since

Inception (b)

  

Institutional

     (8.58 )%        (2.54 )%      3.33 % 

Class K

     (8.56 )        (2.49 )      3.37  

MSCI EAFE Minimum Volatility (USD) Index

     (9.40 )              (3.51 )      3.45  

 

  (a)

See “About Fund Performance” on page 16 for a detailed description of share classes, including any related fees.

 
  (b)

The Fund commenced operations on July 13, 2016.

 

Past performance is not indicative of future results.

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Expense Example

 

    Actual           Hypothetical (b)           
    

Beginning

Account Value

(02/01/20)

     

Ending

Account Value

(07/31/20)

      Expenses
Paid During
the Period (a)		           

Beginning

Account Value

(02/01/20)

     

Ending

Account Value

(07/31/20)

      Expenses
Paid During
the Period (a)		        Annualized
Expense
Ratio		  

Institutional

   $ 1,000.00      $ 914.20      $ 0.95       $ 1,000.00      $ 1,023.87      $ 1.01          0.20 % 

Class K

     1,000.00        914.40        0.71               1,000.00        1,024.12        0.75          0.15  

 

  (a) 

For each class of the Fund, expenses are equal to the annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period shown).

 
  (b) 

Hypothetical 5% return before expenses is calculated by prorating the number of days in the most recent fiscal half year divided by 366.

 

See “Disclosure of Expenses” on page 16 for further information on how expenses were calculated.

 

 

FUND SUMMARY

   5

Fund Summary  as of July 31, 2020 (continued)    iShares Edge MSCI Min Vol EAFE Index Fund

 

Portfolio Information

 

TEN LARGEST HOLDINGS

 

Holding   Percent of
Net Assets		  

Givaudan SA, Registered Shares

     2 % 

Nestle SA, Registered Shares

     2  

Coloplast A/S, Class B

     2  

Swisscom AG, Registered Shares

     1  

Roche Holding AG

     1  

Zurich Insurance Group AG

     1  

Chugai Pharmaceutical Co. Ltd.

     1  

NTT DOCOMO, Inc.

     1  

CLP Holdings Ltd.

     1  

Novartis AG, Registered Shares

     1  

GEOGRAPHIC ALLOCATION

 

Country/Geographic Region   Percent of
Net Assets		  

Japan

     29 % 

Switzerland

     15  

United Kingdom

     10  

Hong Kong

     7  

France

     6  

Australia

     6  

Denmark

     4  

Germany

     4  

Singapore

     3  

Belgium

     2  

Italy

     2  

Netherlands

     2  

Israel

     2  

Finland

     2  

Ireland

     1  

Norway

     1  

Spain

     1  

Sweden

     1  

New Zealand

     1  

Short-Term Securities

     1  

Other(a)

    —  

 

  (a) 

Other includes a less than 1% investment in each of the following countries:

 

China and United States.

 

 

 

6  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Fund Summary  as of July 31, 2020    iShares Edge MSCI Min Vol USA Index Fund

 

Investment Objective

iShares Edge MSCI Min Vol USA Index Fund’s (the “Fund”) investment objective is to seek to track the investment results of an index composed of U.S. equities that, in the aggregate, have lower volatility characteristics relative to the broader U.S. equity market.

Portfolio Management Commentary

How did the Fund perform?

For the 12-month period ended July 31, 2020, the Fund’s Institutional Shares returned 3.63%, while Class K Shares returned 3.76%. The benchmark MSCI USA Minimum Volatility (USD) Index (the “Index”) returned 3.34% for the same period.

Returns for the Fund’s respective share classes differ from the Index based on individual share-class expenses.

Describe the market environment.

In the third quarter of 2019, trade tensions were a key focus for both domestic and global investors. Markets suffered in early August on the back of President Trump’s promise to impose 10% tariffs on all Chinese imports that were not already subject to 25% tariffs. U.S.-China tensions did ostensibly ease ahead of a new round of trade talks in October. In monetary policy, the Fed lowered the target range for the federal funds rates at both its July and September meetings.

On the macroeconomic front, survey-based U.S. economic indicators continued to soften in the manufacturing and consumer sectors, while hard economic data releases exhibited resilience. In interest rates, the frequently monitored two-year/ten-year Treasury yield spread inverted for the first time since the global financial crisis in August but ended the quarter in positive territory.

In the fourth quarter of 2019, risk appetite was boosted broadly by expectations of a U.S.-China trade deal, strong economic growth, and easy monetary policy. U.S. tariffs on China were originally scheduled to increase on December 15 but were avoided due to persistent negotiations between the United States and China. Additionally, news that the United States did not impose tariffs on European Union auto exports helped support sentiment. On the macroeconomic front, the U.S. services and employment sectors remained buoyant.

In November, 266,000 jobs were added to the economy, revising the third quarter unemployment rate down to 3.5% from 3.7%. Overall, the supportive macroeconomic data and boosted risk appetite drove selling of Treasuries in the quarter. Despite the strength in the U.S. economy, the Fed cut the benchmark federal funds rate to 1.75% in October, marking the third rate cut of the year.

U.S. equities experienced significant losses in the first quarter of 2020. Fears of the coronavirus pandemic and its economic toll continued to drive unprecedented levels of financial market volatility. The Chicago Board Options Exchange Volatility Index, which measures near-term stock market volatility, surged to its highest level since the 2008 financial crisis, and the S&P 500® Index experienced its quickest bear market contraction on record. Economic activity fell to a standstill with the Purchasing Managers Index (an index of the prevailing direction of economic trends in the manufacturing and service sectors) across the globe registering the lowest levels on record while jobless claims surged. In late March, the United States saw a record number of initial unemployment claims as 3.3 million people filed for unemployment benefits while the consensus estimate had been around 1.4 million.

On the policy front, global governments unleashed large stimulus packages to combat the shock on the worldwide economy. The United States passed several fiscal stimulus measures, including a $2 trillion relief bill to send money directly to Americans. Separately, monetary policy moved toward accommodation as the Fed cut the policy rate to 0% and pledged to buy as much government-backed debt as needed to bolster the markets for housing and Treasury bonds. Furthermore, the Fed announced it would buy corporate bonds, including the riskiest investment-grade debt, for the first time in its history.

U.S. equities registered a strong recovery in the second quarter of 2020. U.S. stocks outperformed other regions in the second quarter of 2020, with a sharper recovery from the troughs of late March. This was largely supported by the historic U.S. policy response. The United States delivered coordinated fiscal and monetary support sufficient to offset the estimated initial shock from the coronavirus pandemic and spillovers to the full economy. Toward the end of the second quarter, government measures to contain the coronavirus had been gradually lifted in many states, boosting economic activity and employment.

Describe recent portfolio activity.

During the period, as changes were made to the composition of the Index, the Fund purchased and sold securities to maintain its objective of replicating the risks and return of the Index.

Describe portfolio positioning at period end.

The Fund remains positioned to match the risk characteristics of the Index, irrespective of the market’s future direction.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

 

 

FUND SUMMARY

   7

Fund Summary  as of July 31, 2020 (continued)    iShares Edge MSCI Min Vol USA Index Fund

 

TOTAL RETURN BASED ON A $10,000 INVESTMENT

 

LOGO

 

(a) 

Assuming transaction costs and other operating expenses, including investment advisory fees, if any.

(b) 

The Fund generally invests at least 80% of its assets, plus the amount of any borrowing for investment purposes, in securities of the MSCI USA Minimum Volatility (USD) Index.

(c) 

An index that aims to reflect the performance characteristics of a minimum variance strategy applied to the large- and mid-capitalization U.S. equity universe. The index is calculated by optimizing the MSCI USA Index, its parent index, in USD for the lowest absolute risk (within a given set of constraints).

(d) 

Commencement of operations.

Performance Summary for the Period Ended July 31, 2020

 

                Average Annual Total Returns  (a)  
    

6-Month

Total Returns

            1 Year    

Since

Inception (b)

  

Institutional

     (4.67 )%        3.63 %      10.00 % 

Class K

     (4.58 )        3.76       10.07  

MSCI USA Minimum Volatility (USD) Index

     (4.51 )              3.34       10.10  

 

  (a)

See “About Fund Performance” on page 16 for a detailed description of share classes, including any related fees.

 
  (b) 

The Fund commenced operations on July 13, 2016.

 

Past performance is not indicative of future results.

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Expense Example

 

    Actual           Hypothetical (b)           
    

Beginning

Account Value

(02/01/20)

     

Ending

Account Value

(07/31/20)

      Expenses
Paid During
the Period (a)		           

Beginning

Account Value

(02/01/20)

     

Ending

Account Value

(07/31/20)

      Expenses
Paid During
the Period (a)		        Annualized
Expense
Ratio		  

Institutional

   $ 1,000.00      $ 953.30      $ 0.87       $ 1,000.00      $ 1,023.97      $ 0.91          0.18 % 

Class K

     1,000.00        954.20        0.63               1,000.00        1,024.22        0.65          0.13  

 

  (a) 

For each class of the Fund, expenses are equal to the annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period shown).

 
  (b) 

Hypothetical 5% return before expenses is calculated by prorating the number of days in the most recent fiscal half year divided by 366.

 

See “Disclosure of Expenses” on page 16 for further information on how expenses were calculated.

 

 

8  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Fund Summary  as of July 31, 2020 (continued)    iShares Edge MSCI Min Vol USA Index Fund

 

Portfolio Information

 

TEN LARGEST HOLDINGS

 

Holding   Percent of
Net Assets		  

NextEra Energy, Inc.

     2 % 

T-Mobile U.S., Inc.

     2  

McDonald’s Corp.

     2  

Microsoft Corp.

     2  

Verizon Communications, Inc.

     2  

PepsiCo, Inc.

     2  

Waste Management, Inc.

     2  

Newmont Corp.

     2  

Regeneron Pharmaceuticals, Inc.

     2  

Merck & Co., Inc.

     2  

SECTOR ALLOCATION

 

Sector   Percent of
Net Assets		  

Information Technology

     26 % 

Health Care

     18  

Consumer Staples

     14  

Financials

     13  

Utilities

     9  

Industrials

     8  

Consumer Discretionary

     8  

Communication Services

     7  

Real Estate

     6  

Materials

     3  

Energy

     1  

Investment Companies

     — (a) 

Short-Term Securities

     1  

Liabilities in Excess of Other Assets

     (14 ) 

 

  (a) 

Represents less than 1%.

 

For Fund compliance purposes, the Fund’s industry classifications refer to one or more of the industry sub-classifications used by one or more widely recognized market indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

 

 

 

FUND SUMMARY

   9

Fund Summary  as of July 31, 2020    iShares Edge MSCI Multifactor Intl Index Fund

 

Investment Objective

iShares Edge MSCI Multifactor Intl Index Fund’s (the “Fund”) investment objective is to seek to track the investment results of an index composed of global developed market large- and mid-capitalization stocks, excluding the United States, that have favorable exposure to target style factors subject to constraints.

Portfolio Management Commentary

How did the Fund perform?

For the 12-month period ended July 31, 2020, the Fund’s Institutional Shares returned (3.30)%, while Class K Shares returned (3.26)%. The benchmark MSCI World ex USA Diversified Multiple-Factor Index (the “Index”) returned (3.80)% for the same period.

Returns for the Fund’s respective share classes differ from the Index based on individual share-class expenses.

Describe the market environment.

In the third quarter of 2019 within the eurozone, Germany underperformed while Belgium was the best-performing country due to an outsized gain in materials giant Umicore. Eurozone economic activity showed signs of synchronized deceleration. This prompted an aggressive response from the European Central Bank (“ECB”), which announced a stimulus package that included a rate cut, resumption of quantitative easing, and a two-tier excess liquidity system for banks. Simultaneously, the ECB cut both its growth and inflation forecasts, and lowered its forward guidance. In the United Kingdom, continued Brexit uncertainty drove volatility throughout the quarter ahead of the October 31 deadline. Parliament passed legislation that forced the government to ask for an extension if it could not reach a deal with the European Union (“EU”), which buoyed the sterling. Separately, the Bank of England remained on hold despite economic weakness.

In the Asia-Pacific region, Japanese equities outperformed despite deteriorating economic conditions and an impending sales-tax hike. However, Japanese Prime Minister Abe and U.S. President Donald Trump reached a limited trade agreement that removed the threat of tariffs on Japan’s auto exports for the time being. Elsewhere, Hong Kong underperformed amid mounting political unrest.

By the fourth quarter of 2019, the United Kingdom outperformed amid a dense quarter of Brexit developments. Prime Minister Boris Johnson was able to agree to a new Brexit deal with the EU in October, but the October 31 deadline was pushed back to January 31, 2020 due to a stalemate in Parliament. On continental Europe, both France and Germany performed well. Economic activity in Europe was better than in recent quarters, with the perceived easing in trade tensions — both between the United States and China, and the United States and EU — contributing to positive sentiment. Monetary policy remained accommodative, and the ECB resumed balance sheet expansion. Despite the easy monetary policy, the incremental increase in economic activity helped foster positive expectations.

In the Asia-Pacific region, Japan, Hong Kong and Australia recorded positive gains but ongoing tensions in Hong Kong and unimpressive growth out of China weighed on the region.

Developed markets declined significantly in the first quarter of 2020 as all eleven of the Global Industry Classification Standard (“GICS”) sectors tumbled in the quarter. Health care outperformed in the asset class while traditional defensive sectors such as consumer staples and utilities fared better than other sectors. Energy was the worst-performing sector in the first three months of 2020.

In the Asia Pacific region, Japan outperformed relatively in the first quarter of 2020 while the country is likely to see a technical recession after a contraction in its fourth quarter of 2019 gross domestic product growth due to a sales tax hike and as the coronavirus pandemic hit Japan’s tourism and trade in the first quarter of 2020. Both Singapore and Australia suffered from record drawdowns on coronavirus fears during the quarter.

On continental Europe, Italy and Spain were among the worst performers in the first quarter of 2020 as the coronavirus outbreak in Italy intensified in late February and virus-related measures started to disrupt economic activities in the broader region with both France and Germany also weighing on the eurozone equity market. The globally integrated European economy is particularly vulnerable to global supply chain disruptions, posing downside risks to growth. Macro data across the region already showed a significant negative impact, as export orders sharply declined and the Eurozone March 2020 final manufacturing Purchasing Managers’ Index came in at 44.5 versus the 44.6 estimated, its lowest since July 2012.

In the United Kingdom, business sentiment improved in the first two months of 2020, before the spread of coronavirus started to rattle its economy, pushing U.K. equities down in March 2020.

Developed markets advanced in the second quarter of 2020, amid strong fiscal and monetary stimulus, combined with the reopening of economies.

ECB continued its quantitative easing with a novel and flexible Pandemic Emergency Purchase Programme that allows the ECB to buy government debt out of proportion to euro area country shareholdings in the bank. Meanwhile, the targeted long-term refinancing operation provided a record boost to the ECB balance.

On continental Europe, Germany outperformed in the second quarter of 2020 with stronger government support while Italy, Switzerland and Spain lagged. Shares in the United Kingdom underperformed the region, with lower quarterly gains.

In the Asia-Pacific region, Australia led strong gains after suffering from record drawdowns on coronavirus fears in the previous quarter. Hong Kong and Singapore posted positive returns but underperformed in the region.

From a sector perspective, all GICS sectors rallied in the second quarter of 2020. Information technology and materials outperformed in the asset class while traditional defensive sectors such as consumer staples and real estate fell behind in the rally. Energy remained the worst-performing sector.

 

 

10  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Fund Summary  as of July 31, 2020 (continued)    iShares Edge MSCI Multifactor Intl Index Fund

 

Describe recent portfolio activity.

During the period, as changes were made to the composition of the Index, the Fund purchased and sold securities to maintain its objective of replicating the risks and return of the Index.

Describe portfolio positioning at period end.

The Fund remains positioned to match the risk characteristics of the Index, irrespective of the market’s future direction.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

TOTAL RETURN BASED ON A $10,000 INVESTMENT

 

LOGO

 

(a) 

Assuming transaction costs and other operating expenses, including investment advisory fees, if any.

(b) 

The Fund generally invests at least 80% of its assets, plus the amount of any borrowing for investment purposes, in securities of the MSCI World ex USA Diversified Multiple-Factor Index and in investments that have economic characteristics that are substantially similar to the component securities of the MSCI World ex USA Diversified Multiple-Factor Index (i.e., depositary receipts representing securities of the MSCI World ex USA Diversified Multiple-Factor Index).

(c) 

An index that is based on the MSCI World ex USA Index, its parent index, which includes large- and mid-capitalization stocks across 22 of 23 developed markets, excluding the United States. The index aims to maximize exposure to four factors — value, momentum, quality and low size — while maintaining a risk profile similar to that of the underlying parent index.

(d) 

Commencement of operations.

Performance Summary for the Period Ended July 31, 2020

 

                Average Annual Total Returns (a)  
    

6-Month

Total Returns

            1 Year    

Since

Inception (b)

  

Institutional

     (7.91 )%        (3.30 )%      4.27 % 

Class K

     (7.88 )        (3.26 )      4.32  

MSCI World ex USA Diversified Multiple-Factor Index

     (8.32 )              (3.80 )      4.54  

 

  (a)

See “About Fund Performance” on page 16 for a detailed description of share classes, including any related fees.

 
  (b) 

The Fund commenced operations on July 13, 2016.

 

Past performance is not indicative of future results.

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Expense Example

 

    Actual           Hypothetical (b)           
    

Beginning

Account Value

(02/01/20)

     

Ending

Account Value

(07/31/20)

      Expenses
Paid During
the Period (a)		           

Beginning

Account Value

(02/01/20)

     

Ending

Account Value

(07/31/20)

      Expenses
Paid During
the Period (a)		        Annualized
Expense
Ratio		  

Institutional

   $ 1,000.00      $ 920.90      $ 1.67       $ 1,000.00      $ 1,023.12      $ 1.76          0.35 % 

Class K

     1,000.00        921.20        1.43               1,000.00        1,023.37        1.51          0.30  

 

  (a) 

For each class of the Fund, expenses are equal to the annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period shown).

 
  (b) 

Hypothetical 5% return before expenses is calculated by prorating the number of days in the most recent fiscal half year divided by 366.

 

See “Disclosure of Expenses” on page 16 for further information on how expenses were calculated.

 

 

FUND SUMMARY

   11

Fund Summary  as of July 31, 2020 (continued)    iShares Edge MSCI Multifactor Intl Index Fund

 

Portfolio Information

 

TEN LARGEST HOLDINGS

 

Holding   Percent of
Net Assets		  

Roche Holding AG

     3 % 

Rio Tinto PLC

     3  

Koninklijke Philips NV

     2  

BHP Group PLC

     2  

Woolworths Group Ltd.

     2  

Koninklijke Ahold Delhaize NV

     2  

Nippon Telegraph & Telephone Corp.

     2  

Novo Nordisk A/S, Class B

     2  

Astellas Pharma, Inc.

     2  

Hitachi Ltd.

     2  

GEOGRAPHIC ALLOCATION

 

Country/Geographic Region   Percent of
Net Assets		  

Japan

     19 % 

Australia

     14  

Canada

     13  

United Kingdom

     10  

Switzerland

     8  

Netherlands

     8  

France

     4  

Denmark

     4  

Germany

     3  

Hong Kong

     3  

Belgium

     3  

Sweden

     3  

United States

     2  

Spain

     1  

New Zealand

     1  

Finland

     1  

Italy

     1  

Singapore

     1  

Other(a)

     1  

 

  (a) 

Other includes a less than 1% investment in each of the following countries: Brazil, China and Jordan.

 
 

 

 

12  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Fund Summary  as of July 31, 2020    iShares Edge MSCI Multifactor USA Index Fund

 

Investment Objective

iShares Edge MSCI Multifactor USA Index Fund’s (the “Fund”) investment objective is to seek to track the investment results of an index composed of U.S. large- and mid-capitalization stocks that have favorable exposure to target style factors subject to constraints.

Portfolio Management Commentary

How did the Fund perform?

For the 12-month period ended July 31, 2020, the Fund’s Institutional Shares returned 3.68%, while Class K Shares returned 3.73%. The benchmark MSCI USA Diversified Multiple-Factor Index (the “Index”) returned 3.67% for the same period.

Returns for the Fund’s respective share classes differ from the Index based on individual share-class expenses.

Describe the market environment.

In the third quarter of 2019, trade tensions were a key focus for both domestic and global investors. Markets suffered in early August on the back of President Trump’s promise to impose 10% tariffs on all Chinese imports that were not already subject to 25% tariffs. U.S.-China tensions did ostensibly ease ahead of a new round of trade talks in October. In monetary policy, the Fed lowered the target range for the federal funds rates at both its July and September meetings.

On the macroeconomic front, survey-based U.S. economic indicators continued to soften in the manufacturing and consumer sectors, while hard economic data releases exhibited resilience. In interest rates, the frequently monitored two-year/ten-year Treasury yield spread inverted for the first time since the global financial crisis in August but ended the quarter in positive territory.

In the fourth quarter of 2019, risk appetite was boosted broadly by expectations of a U.S.-China trade deal, strong economic growth, and easy monetary policy. U.S. tariffs on China were originally scheduled to increase on December 15 but were avoided due to persistent negotiations between the United States and China. Additionally, news that the United States did not impose tariffs on European Union auto exports helped support sentiment. On the macroeconomic front, the U.S. services and employment sectors remained buoyant.

In November, 266,000 jobs were added to the economy, revising the third quarter unemployment rate down to 3.5% from 3.7%. Overall, the supportive macroeconomic data and boosted risk appetite drove selling of Treasuries in the quarter. Despite the strength in the U.S. economy, the Fed cut the benchmark federal funds rate to 1.75% in October, marking the third rate cut of the year.

U.S. equities experienced significant losses in the first quarter of 2020. Fears of the coronavirus pandemic and its economic toll continued to drive unprecedented levels of financial market volatility. The Chicago Board Options Exchange Volatility Index, which measures near-term stock market volatility, surged to its highest level since the 2008 financial crisis, and the S&P 500® Index experienced its quickest bear market contraction on record. Economic activity fell to a standstill with the Purchasing Managers Index (an index of the prevailing direction of economic trends in the manufacturing and service sectors) across the globe registering the lowest levels on record while jobless claims surged. In late March, the United States saw a record number of initial unemployment claims as 3.3 million people filed for unemployment benefits while the consensus estimate had been around 1.4 million.

On the policy front, global governments unleashed large stimulus packages to combat the shock on the worldwide economy. The United States passed several fiscal stimulus measures, including a $2 trillion relief bill to send money directly to Americans. Separately, monetary policy moved toward accommodation as the Fed cut the policy rate to 0% and pledged to buy as much government-backed debt as needed to bolster the markets for housing and Treasury bonds. Furthermore, the Fed announced it would buy corporate bonds, including the riskiest investment-grade debt, for the first time in its history.

U.S. equities registered a strong recovery in the second quarter of 2020. U.S. stocks outperformed other regions in the second quarter of 2020, with a sharper recovery from the troughs of late March. This was largely supported by the historic U.S. policy response. The United States delivered coordinated fiscal and monetary support sufficient to offset the estimated initial shock from the coronavirus pandemic and spillovers to the full economy. Toward the end of the second quarter, government measures to contain the coronavirus had been gradually lifted in many states, boosting economic activity and employment.

Describe recent portfolio activity.

During the period, as changes were made to the composition of the Index, the Fund purchased and sold securities to maintain its objective of replicating the risks and return of the Index.

Describe portfolio positioning at period end.

The Fund remains positioned to match the risk characteristics of the Index, irrespective of the market’s future direction.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

 

 

FUND SUMMARY

   13

Fund Summary  as of July 31, 2020 (continued)    iShares Edge MSCI Multifactor USA Index Fund

 

TOTAL RETURN BASED ON A $10,000 INVESTMENT

 

LOGO

 

(a) 

Assuming transaction costs and other operating expenses, including investment advisory fees, if any.

(b) 

The Fund generally invests at least 80% of its assets, plus the amount of any borrowing for investment purposes, in securities of the MSCI USA Diversified Multiple-Factor Index.

(c) 

An index that is based on a traditional market cap weighted parent index, the MSCI USA Index, which includes U.S. large- and mid-capitalization stocks. The index aims to maximize exposure to four factors — value, momentum, quality and low size — while maintaining a risk profile similar to that of the underlying parent index.

(d) 

Commencement of operations.

Performance Summary for the Period Ended July 31, 2020

 

                Average Annual Total Returns (a)  
    

6-Month

Total Returns

            1 Year    

Since

Inception (b)

  

Institutional

     (3.12 )%        3.68 %      9.22 % 

Class K

     (3.18 )        3.73       9.27  

MSCI USA Diversified Multiple-Factor Index

     (3.32 )              3.67       9.51  

 

  (a)

See “About Fund Performance” on page 16 for a detailed description of share classes, including any related fees.

 
  (b) 

The Fund commenced operations on July 13, 2016.

 

Past performance is not indicative of future results.

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Expense Example

 

    Actual           Hypothetical (b)           
    

Beginning

Account Value

(02/01/20)

     

Ending

Account Value

(07/31/20)

      Expenses
Paid During
the Period (a)		           

Beginning

Account Value

(02/01/20)

     

Ending

Account Value

(07/31/20)

      Expenses
Paid During
the Period (a)		        Annualized
Expense
Ratio		  

Institutional

   $ 1,000.00      $ 968.80      $ 1.22       $ 1,000.00      $ 1,023.62      $ 1.26          0.25 % 

Class K

     1,000.00        968.20        0.98               1,000.00        1,023.87        1.01          0.20  

 

  (a) 

For each class of the Fund, expenses are equal to the annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period shown).

 
  (b) 

Hypothetical 5% return before expenses is calculated by prorating the number of days in the most recent fiscal half year divided by 366.

 

See “Disclosure of Expenses” on page 16 for further information on how expenses were calculated.

 

 

14  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Fund Summary  as of July 31, 2020 (continued)    iShares Edge MSCI Multifactor USA Index Fund

 

Portfolio Information

 

TEN LARGEST HOLDINGS

 

Holding   Percent of
Net Assets		  

Apple, Inc.

     4 % 

Walmart, Inc.

     3  

Intuit, Inc.

     3  

Microsoft Corp.

     3  

Anthem, Inc.

     2  

Intel Corp.

     2  

Target Corp.

     2  

Micron Technology, Inc.

     2  

AT&T, Inc.

     2  

Humana, Inc.

     2  

SECTOR ALLOCATION

 

Sector   Percent of
Net Assets		  

Information Technology

     30 % 

Health Care

     18  

Industrials

     10  

Consumer Discretionary

     9  

Consumer Staples

     7  

Financials

     6  

Communication Services

     6  

Utilities

     5  

Real Estate

     5  

Materials

     3  

Short-Term Securities

     1  

Investment Companies

     1  

Energy

     — (a) 

Other Assets Less Liabilities

     (1 ) 

 

  (a) 

Represents less than 1%.

 

For Fund compliance purposes, the Fund’s industry classifications refer to one or more of the industry sub-classifications used by one or more widely recognized market indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

 

 

 

FUND SUMMARY

   15

About Fund Performance

 

Institutional and Class K Shares are not subject to any sales charge. These shares bear no ongoing distribution or service fees and are available only to certain eligible investors.

Performance information reflects past performance and does not guarantee future results. Current performance may be lower or higher than the performance data quoted. Refer to blackrock.com to obtain performance data current to the most recent month-end. Performance results do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Figures shown in the performance tables on the previous pages assume reinvestment of all distributions, if any, at net asset value (“NAV”) on the ex-dividend date or payable date, as applicable. Investment return and principal value of shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Distributions paid to each class of shares will vary because of the different levels of service, distribution and transfer agency fees applicable to each class, which are deducted from the income available to be paid to shareholders.

BlackRock Advisors, LLC (the “Manager”), each Fund’s investment adviser, has contractually agreed to waive and/or reimburse a portion of each Fund’s expenses. Without such waivers and/or reimbursements, each Fund’s performance would have been lower. With respect to each Fund’s contractual waiver, the Manager is under no obligation to continue waiving and/or reimbursing its fees after the applicable termination date of such agreements. See Note 6 of the Notes to Financial Statements for additional information on waivers and/or reimbursements.

Disclosure of Expenses

Shareholders of the Funds may incur the following charges: (a) transactional expenses; and (b) operating expenses, including investment advisory fees, service and distribution fees, including 12b-1 fees, acquired fund fees and expenses and other fund expenses. The expense examples shown on the previous pages, (which are based on a hypothetical investment of $1,000 invested on February 1, 2020 and held through July 31, 2020) 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 mutual funds.

The expense examples provide information about actual account values and actual expenses. 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 corresponding to their Fund and share class 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 these Funds and other funds, compare the 5% hypothetical examples with the 5% hypothetical examples that appear in shareholder reports of other funds.

The expenses shown in the expense examples are intended to highlight shareholders’ ongoing costs only and do not reflect transactional expenses, such as sales charges, if any. 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.

Derivative Financial Instruments

The Funds may invest in various derivative financial instruments. These instruments are used to obtain exposure to a security, commodity, index, market, and/or other assets without owning or taking physical custody of securities, commodities and/or other referenced assets or to manage market, equity, credit, interest rate, foreign currency exchange rate, commodity and/or other risks. Derivative financial instruments may give rise to a form of economic leverage and involve risks, including the imperfect correlation between the value of a derivative financial instrument and the underlying asset, possible default of the counterparty to the transaction or illiquidity of the instrument. The Funds’ successful use of a derivative financial instrument depends on the investment adviser’s ability to predict pertinent market movements accurately, which cannot be assured. The use of these instruments may result in losses greater than if they had not been used, may limit the amount of appreciation a Fund can realize on an investment and/or may result in lower distributions paid to shareholders. The Funds’ investments in these instruments, if any, are discussed in detail in the Notes to Financial Statements.

 

 

16  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

July 31, 2020

   

iShares Edge MSCI Min Vol EAFE Index Fund

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks — 99.0%

 

Australia — 6.0%  

Aurizon Holdings Ltd.

     162,269     $ 517,467  

AusNet Services

     165,169       211,038  

Australia & New Zealand Banking Group Ltd.

     11,391       144,674  

Brambles Ltd.

     20,198       155,944  

Cochlear Ltd.

     751       102,484  

Commonwealth Bank of Australia

     15,697       798,582  

CSL Ltd.

     2,327       452,608  

Dexus

     14,923       90,588  

Insurance Australia Group Ltd.

     51,505       187,509  

Medibank Pvt Ltd.

     102,626       204,954  

National Australia Bank Ltd.

     11,426       142,643  

Newcrest Mining Ltd.

     29,121       741,881  

Ramsay Health Care Ltd.

     3,871       171,095  

Sonic Healthcare Ltd.

     39,479       903,856  

Suncorp Group Ltd.

     16,172       98,776  

Telstra Corp. Ltd.

     167,194       400,349  

Transurban Group(a)

     76,390       755,612  

Wesfarmers Ltd.

     46,656       1,551,207  

Westpac Banking Corp.

     21,035       252,604  

Woolworths Group Ltd.

     59,650       1,651,353  
   

 

 

  
    9,535,224  
Belgium — 2.4%  

Colruyt SA

     13,638       792,049  

Groupe Bruxelles Lambert SA

     14,951       1,296,858  

Proximus SADP

     34,072       700,895  

UCB SA

     8,415       1,081,258  
   

 

 

  
    3,871,060  
China — 0.2%  

BeiGene Ltd., ADR(b)

     434       90,706  

BOC Hong Kong Holdings Ltd.

     52,000       144,979  
   

 

 

  
    235,685  
Denmark — 4.5%  

Carlsberg A/S, Class B

     5,348       789,844  

Chr Hansen Holding A/S

     1,199       136,821  

Coloplast A/S, Class B

     14,091       2,405,295  

DSV Panalpina AS

     747       102,216  

Genmab A/S, ADR(b)

     1,058       364,170  

H Lundbeck A/S

     3,222       117,474  

Novo Nordisk A/S, Class B

     24,787       1,626,339  

Orsted A/S(c)

     5,108       728,017  

Tryg A/S

     29,077       855,625  
   

 

 

  
    7,125,801  
Finland — 1.6%  

Elisa OYJ

     19,879       1,178,996  

Neste OYJ

     2,501       114,875  

Nokia OYJ

     42,484       203,928  

Sampo OYJ, Class A

     27,558       996,064  
   

 

 

  
    2,493,863  
France — 6.0%  

Aeroports de Paris(b)(d)

     3,638       342,960  

Air Liquide SA

     6,294       1,035,238  

Alstom SA(b)

     8,256       460,050  

BioMerieux

     527       84,937  

Casino Guichard-Perrachon SA(b)

     6,249       173,216  

Danone SA

     9,834       658,222  

EssilorLuxottica SA(b)

     4,333       577,134  

Eurazeo SE(b)

     1,588       83,113  

Getlink SE(b)

     21,756       327,329  

Hermes International

     2,000       1,621,479  

L’Oreal SA

     2,424       813,562  
Security   Shares     Value  
France (continued)  

Orange SA

     84,390     $ 989,125  

Pernod Ricard SA

     3,643       626,049  

Sanofi

     14,266       1,497,889  

Thales SA(b)

     4,289       310,058  
   

 

 

  
    9,600,361  
Germany — 4.2%  

adidas AG(b)

     631       174,016  

Beiersdorf AG

     7,705       920,020  

Deutsche Boerse AG

     3,121       567,847  

Deutsche Telekom AG, Registered Shares

     98,121       1,638,105  

Fraport AG Frankfurt Airport Services
Worldwide(b)

     1,636       63,954  

Hannover Rueck SE

     5,960       1,008,255  

Henkel AG & Co. KGaA

     3,792       329,491  

Knorr-Bremse AG

     4,420       517,172  

Merck KGaA

     5,203       664,973  

Muenchener Rueckversicherungs-Gesellschaft AG, Registered Shares

     1,187       314,642  

Siemens Healthineers AG(c)

     4,466       232,507  

Symrise AG

     1,153       144,137  

Telefonica Deutschland Holding AG

     27,974       76,329  
   

 

 

  
    6,651,448  
Hong Kong — 7.3%  

CK Infrastructure Holdings Ltd.

     103,500       539,710  

CLP Holdings Ltd.

     191,000       1,806,038  

Dairy Farm International Holdings Ltd.

     81,400       349,746  

Hang Seng Bank Ltd.(d)

     43,400       682,879  

HK Electric Investments & HK Electric Investments Ltd.(a)

     633,000       655,086  

HKT Trust & HKT Ltd.(a)

     765,000       1,127,219  

Hong Kong & China Gas Co. Ltd.(d)

     953,950       1,366,849  

Jardine Matheson Holdings Ltd.

     14,400       588,921  

Jardine Strategic Holdings Ltd.

     25,000       503,629  

Link REIT

     58,000       450,026  

MTR Corp. Ltd.

     256,500       1,274,713  

PCCW Ltd.

     1,019,000       574,465  

Power Assets Holdings Ltd.

     300,000       1,670,719  
   

 

 

  
    11,590,000  
Ireland — 1.3%  

Kerry Group PLC, Class A

     12,778       1,692,401  

Kingspan Group PLC(b)

     4,650       333,591  
   

 

 

  
    2,025,992  
Israel — 1.6%  

Azrieli Group Ltd.

     1,555       75,632  

Bank Hapoalim BM

     83,791       505,590  

Bank Leumi Le-Israel BM

     124,401       630,636  

Check Point Software Technologies Ltd.(b)

     2,461       308,486  

Elbit Systems Ltd.

     698       98,638  

Mizrahi Tefahot Bank Ltd.

     27,198       570,067  

Nice Ltd.(b)

     1,635       335,807  
   

 

 

  
    2,524,856  
Italy — 1.8%  

Assicurazioni Generali SpA

     30,258       454,345  

Davide Campari-Milano NV

     10,668       107,698  

DiaSorin SpA

     4,080       804,782  

Enel SpA

     26,176       239,786  

Recordati SpA

     5,041       270,753  

Snam SpA

     135,030       718,826  

Terna Rete Elettrica Nazionale SpA

     32,095       239,517  
   

 

 

  
    2,835,707  
Japan — 28.7%  

ABC-Mart, Inc.

     7,800       410,947  

Ajinomoto Co., Inc.

     19,900       359,386  
 

 

 

SCHEDULES OF INVESTMENTS

   17

Schedule of Investments  (continued)

July 31, 2020

   

iShares Edge MSCI Min Vol EAFE Index Fund

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Japan (continued)  

ANA Holdings, Inc.

     27,500     $ 569,370  

Asahi Group Holdings Ltd.

     10,700       348,776  

Asahi Intecc Co. Ltd.

     6,300       175,777  

Astellas Pharma, Inc.

     4,900       76,430  

Bandai Namco Holdings, Inc.

     2,600       143,578  

Bridgestone Corp.

     9,800       288,664  

Calbee, Inc.

     2,700       85,799  

Canon, Inc.

     48,300       777,268  

Central Japan Railway Co.

     3,100       376,059  

Chugai Pharmaceutical Co. Ltd.

     46,500       2,099,440  

Chugoku Electric Power Co., Inc.

     65,800       802,958  

Daiwa House REIT Investment Corp.

     425       1,105,054  

East Japan Railway Co.

     15,200       876,199  

Fast Retailing Co. Ltd.

     200       106,360  

FUJIFILM Holdings Corp.

     6,300       281,752  

Hankyu Hanshin Holdings, Inc.

     6,500       186,161  

Hikari Tsushin, Inc.

     1,300       281,841  

Japan Airlines Co. Ltd.(b)

     27,700       448,388  

Japan Post Bank Co. Ltd.(b)

     99,700       743,798  

Japan Post Holdings Co. Ltd.(b)

     159,600       1,090,036  

Japan Real Estate Investment Corp.

     119       607,179  

Japan Tobacco, Inc.

     35,400       605,073  

Kamigumi Co. Ltd.

     6,500       118,630  

Kao Corp.

     3,500       253,904  

KDDI Corp.

     26,300       836,273  

Keihan Holdings Co. Ltd.

     9,700       395,428  

Keio Corp.

     8,400       419,445  

Keisei Electric Railway Co. Ltd.

     4,200       102,691  

Keyence Corp.

     2,600       1,096,386  

Kintetsu Group Holdings Co. Ltd.

     23,900       931,195  

Kirin Holdings Co. Ltd.

     6,100       117,539  

Kyowa Kirin Co. Ltd.

     4,600       113,607  

Kyushu Electric Power Co., Inc.

     20,100       168,808  

Kyushu Railway Co.

     36,700       725,004  

Lawson, Inc.

     12,000       597,562  

Maruichi Steel Tube Ltd.

     2,900       68,671  

McDonald’s Holdings Co. Japan Ltd.

     16,400       784,876  

MEIJI Holdings Co. Ltd.

     7,400       581,081  

Mitsubishi Heavy Industries Ltd.

     3,100       72,117  

Mizuho Financial Group, Inc.

     783,200       954,758  

MonotaRO Co Ltd.

     8,200       348,738  

MS&AD Insurance Group Holdings, Inc.

     4,200       105,538  

Nagoya Railroad Co. Ltd.

     30,900       781,957  

NEC Corp.

     16,900       946,831  

NH Foods Ltd.

     2,300       101,089  

Nippon Building Fund, Inc.

     228       1,274,718  

Nippon Paint Holdings Co. Ltd.

     13,400       916,309  

Nippon Prologis REIT, Inc.(b)

     424       1,463,644  

Nippon Telegraph & Telephone Corp.

     46,900       1,088,618  

Nissin Foods Holdings Co. Ltd.

     2,600       234,860  

Nitori Holdings Co. Ltd.

     3,600       788,170  

NTT DOCOMO, Inc.

     75,600       2,081,352  

Obic Co. Ltd.

     600       107,598  

Odakyu Electric Railway Co. Ltd.

     15,400       322,274  

Olympus Corp.

     5,500       98,926  

Ono Pharmaceutical Co. Ltd.

     17,900       503,122  

Oracle Corp. Japan

     1,500       180,693  

Oriental Land Co. Ltd.

     9,500       1,146,105  

Osaka Gas Co. Ltd.

     5,600       103,833  

Pan Pacific International Holdings Corp.

     17,500       396,637  

PeptiDream, Inc.(b)

     13,100       527,750  

Santen Pharmaceutical Co. Ltd.

     17,500       295,268  

Secom Co. Ltd.

     12,500       1,080,987  

Seibu Holdings, Inc.

     13,300       118,868  
Security   Shares     Value  
Japan (continued)  

Sekisui House Ltd.

     22,500     $ 410,934  

Seven & i Holdings Co. Ltd.

     14,525       438,938  

Seven Bank Ltd.

     26,500       65,005  

SG Holdings Co. Ltd.

     29,200       1,071,600  

Shimamura Co. Ltd.

     4,800       333,785  

Shimano, Inc.

     1,200       260,565  

Shionogi & Co. Ltd.

     6,300       374,793  

Softbank Corp.

     28,100       376,152  

Sohgo Security Services Co. Ltd.

     2,100       99,068  

Suntory Beverage & Food Ltd.

     20,600       777,572  

Sysmex Corp.

     2,300       176,862  

Takeda Pharmaceutical Co. Ltd.

     5,900       213,974  

Tobu Railway Co. Ltd.

     17,500       490,067  

Toho Co. Ltd.

     4,800       142,683  

Tokio Marine Holdings, Inc.

     5,200       219,570  

Tokyo Gas Co. Ltd.

     14,200       301,496  

Tokyu Corp.

     5,500       61,209  

Toyo Suisan Kaisha Ltd.

     18,200       1,106,474  

Tsuruha Holdings, Inc.

     1,200       166,399  

USS Co. Ltd.

     5,100       75,612  

Welcia Holdings Co. Ltd.

     9,200       843,040  

West Japan Railway Co.

     15,900       686,641  

Yamada Denki Co. Ltd.

     150,800       654,260  

Yamazaki Baking Co. Ltd.

     6,100       102,359  
   

 

 

  
    45,647,211  
Netherlands — 1.6%  

Heineken Holding NV

     1,539       132,974  

Heineken NV

     3,495       338,577  

Koninklijke Ahold Delhaize NV

     36,870       1,061,887  

Koninklijke KPN NV

     69,197       182,293  

Koninklijke Vopak NV

     4,068       222,104  

Wolters Kluwer NV

     7,721       608,089  
   

 

 

  
    2,545,924  
New Zealand — 0.8%  

Auckland International Airport Ltd.(b)

     77,422       330,037  

Fisher & Paykel Healthcare Corp. Ltd.

     10,807       258,875  

Meridian Energy Ltd.

     72,446       235,216  

Spark New Zealand Ltd.

     127,171       416,757  
   

 

 

  
    1,240,885  
Norway — 1.2%  

Gjensidige Forsikring ASA(b)

     15,043       309,252  

Mowi ASA

     13,315       241,816  

Orkla ASA

     75,117       738,838  

Telenor ASA

     37,492       579,581  
   

 

 

  
    1,869,487  
Singapore — 2.9%  

Ascendas Real Estate Investment Trust

     73,436       190,086  

CapitaLand Mall Trust

     184,000       254,311  

DBS Group Holdings Ltd.

     23,600       340,917  

Oversea-Chinese Banking Corp. Ltd.

     83,600       523,650  

Singapore Airlines Ltd.

     124,743       311,179  

Singapore Exchange Ltd.

     96,100       573,268  

Singapore Technologies Engineering Ltd.(d)

     285,500       682,885  

Singapore Telecommunications Ltd.

     476,400       864,605  

United Overseas Bank Ltd.

     29,435       414,430  

Wilmar International Ltd.

     110,600       373,851  
   

 

 

  
    4,529,182  
Spain — 1.1%  

Aena SME SA(c)

     2,146       279,807  

Endesa SA

     19,878       567,058  

Iberdrola SA

     29,135       376,578  

Iberdrola SA(b)

     662       8,517  
 

 

 

18  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (continued)

July 31, 2020

   

iShares Edge MSCI Min Vol EAFE Index Fund

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Spain (continued)  

Red Electrica Corp. SA

     27,347     $ 533,124  
   

 

 

  
    1,765,084  
Sweden — 0.9%  

ICA Gruppen AB

     11,464       563,149  

Telefonaktiebolaget LM Ericsson, Class B

     40,068       466,194  

Telia Co. AB

     112,324       437,696  
   

 

 

  
    1,467,039  
Switzerland — 14.6%  

Alcon, Inc.(b)

     1,447       87,456  

Baloise Holding AG, Registered Shares

     5,533       844,196  

Barry Callebaut AG, Registered Shares

     265       551,814  

Chocoladefabriken Lindt & Spruengli AG

     126       975,471  

Chocoladefabriken Lindt & Spruengli AG, Registered Shares

     6       514,435  

EMS-Chemie Holding AG, Registered Shares

     2,010       1,735,776  

Geberit AG, Registered Shares

     898       495,621  

Givaudan SA, Registered Shares

     599       2,480,889  

Kuehne + Nagel International AG, Registered Shares

     4,161       717,302  

Logitech International SA, Registered Shares

     7,519       548,499  

Nestle SA, Registered Shares

     20,626       2,452,879  

Novartis AG, Registered Shares

     21,457       1,767,354  

Partners Group Holding AG

     575       557,007  

Roche Holding AG

     6,245       2,162,996  

Schindler Holding AG, Registered Shares

     3,978       995,511  

SGS SA, Registered Shares

     34       89,041  

Sonova Holding AG, Registered Shares(b)

     1,525       344,809  

Swiss Life Holding AG, Registered Shares(b)

     1,095       400,159  

Swiss Prime Site AG, Registered Shares

     7,934       724,085  

Swiss Re AG

     3,727       294,094  

Swisscom AG, Registered Shares

     4,474       2,378,223  

Zurich Insurance Group AG

     5,794       2,142,637  
   

 

 

  
    23,260,254  
United Kingdom — 10.0%  

Admiral Group PLC

     29,203       910,687  

Associated British Foods PLC

     3,794       86,899  

AstraZeneca PLC

     9,981       1,102,697  

BAE Systems PLC

     67,794       434,485  

British American Tobacco PLC

     3,980       131,532  

Bunzl PLC(b)

     9,161       262,426  

Croda International PLC

     3,928       293,164  

Diageo PLC

     42,982       1,572,738  

Direct Line Insurance Group PLC(b)

     230,973       893,792  

Experian PLC

     12,250       427,894  

GlaxoSmithKline PLC

     76,745       1,528,784  

Halma PLC

     4,537       128,868  

HSBC Holdings PLC

     114,867       517,225  
Security   Shares     Value  
United Kingdom (continued)  

Imperial Brands PLC

     11,165     $ 186,018  

National Grid PLC

     137,752       1,616,089  

Ocado Group PLC(b)

     10,440       279,686  

Reckitt Benckiser Group PLC

     3,934       394,460  

RELX PLC

     48,389       1,018,694  

Rentokil Initial PLC

     15,051       105,001  

RSA Insurance Group PLC(b)

     16,108       89,906  

Sage Group PLC

     16,349       155,150  

Severn Trent PLC

     9,680       308,476  

Smith & Nephew PLC

     48,453       956,339  

Tesco PLC

     57,665       162,750  

Unilever NV

     13,490       797,128  

Unilever PLC

     17,861       1,063,533  

United Utilities Group PLC

     20,482       240,204  

WM Morrison Supermarkets PLC

     117,684       285,469  
   

 

 

  
    15,950,094  
United States — 0.3%  

QIAGEN NV(b)

     8,900       442,100  
   

 

 

  

Total Long-Term Investments — 99.0%
(Cost — $149,246,313)

 

     157,207,257  
 

 

 

  

Short-Term Securities — 0.8%

 

BlackRock Cash Funds: Institutional,
SL Agency Shares,

    

0.43%(e)(f)(g)

     1,262,862       1,264,252  
   

 

 

  

Total Short-Term Securities — 0.8%
(Cost — $1,264,450)

 

     1,264,252  
 

 

 

  

Total Investments — 99.8%
(Cost — $150,510,763)

 

     158,471,509  

Other Assets Less Liabilities — 0.2%

 

     321,498  
 

 

 

  

Net Assets — 100.0%

 

   $ 158,793,007  
 

 

 

  

 

(a) 

A security contractually bound to one or more other securities to form a single saleable unit which cannot be sold separately.

(b) 

Non-income producing security.

(c) 

Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

(d) 

Security, or a portion of the security, is on loan.

(e) 

Annualized 7-day yield as of period end.

(f) 

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

 
(g) 

Investments in issuers considered to be an affiliate/affiliates of the Fund during the year ended July 31, 2020 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliated Issuer    Shares
Held at
07/31/19		      Shares
Purchased		     Shares
Sold		     Shares
Held at
07/31/20		      Value at
07/31/20		      Income     Net
Realized
Gain (Loss) (a)		      Change in
Unrealized
Appreciation
(Depreciation)		  

BlackRock Cash Funds: Institutional, SL Agency Shares

      637,956        624,906 (b)      —       1,262,862      $ 1,264,252      $ 7,069 (c)    $ (1,208 )     $ (399 ) 

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

      156,274        —       (156,274 )(b)      —        —        4,261       —        —  
            

 

 

     

 

 

    

 

 

     

 

 

  
   $ 1,264,252      $ 11,330     $ (1,208 )     $ (399 ) 
  

 

 

     

 

 

    

 

 

     

 

 

  

 

  (a) 

Includes net capital gain distributions, if applicable.

 
  (b) 

Represents net shares 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.

 
  (d) 

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

 

 

 

SCHEDULES OF INVESTMENTS

   19

Schedule of Investments  (continued)

July 31, 2020

   

iShares Edge MSCI Min Vol EAFE Index Fund

 

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

                  

Nikkei 225 Index

      5          09/10/20        $ 515        $ (18,616 ) 

SPI 200 Index

      4          09/17/20          420          (4,132 ) 

FTSE 100 Index

      4          09/18/20          308          (14,012 ) 
                 

 

 

  
                  $ (36,760 ) 
                 

 

 

  

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  

Liabilities — Derivative Financial Instruments

                     

Futures contracts

                     

Unrealized depreciation on futures contracts(a)

   $ —      $ —      $ 36,760      $ —      $ —      $ —      $ 36,760  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

  (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 year ended July 31, 2020, 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

    $ —      $ —      $ 641,873      $ —      $ —      $ —      $ 641,873  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
Net Change in Unrealized Appreciation (Depreciation) on:                                                 

Futures contracts

    $ —      $ —      $ (40,542 )     $ —      $ —      $ —      $ (40,542 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

         

Average notional value of contracts — long

    $ 2,525,879  
  

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

 

 

20  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (continued)

July 31, 2020

   

iShares Edge MSCI Min Vol EAFE Index Fund

 

Fair Value Hierarchy as of Period End

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

The following tables summarize the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy:

 

      Level 1        Level 2        Level 3        Total  

Assets:

 

Investments:

 

Common Stocks:

 

Australia

   $ —        $ 9,535,224        $ —        $ 9,535,224  

Belgium

     —          3,871,060          —          3,871,060  

China

     90,706          144,979          —          235,685  

Denmark

     728,017          6,397,784          —          7,125,801  

Finland

     —          2,493,863          —          2,493,863  

France

     —          9,600,361          —          9,600,361  

Germany

     —          6,651,448          —          6,651,448  

Hong Kong

     —          11,590,000          —          11,590,000  

Ireland

     —          2,025,992          —          2,025,992  

Israel

     308,486          2,216,370          —          2,524,856  

Italy

     —          2,835,707          —          2,835,707  

Japan

     843,040          44,804,171          —          45,647,211  

Netherlands

     1,301,744          1,244,180          —          2,545,924  

New Zealand

     —          1,240,885          —          1,240,885  

Norway

     —          1,869,487          —          1,869,487  

Singapore

     —          4,529,182          —          4,529,182  

Spain

     —          1,765,084          —          1,765,084  

Sweden

     —          1,467,039          —          1,467,039  

Switzerland

     —          23,260,254          —          23,260,254  

United Kingdom

     —          15,950,094          —          15,950,094  

United States

     442,100          —          —          442,100  

Short-Term Securities

     1,264,252          —          —          1,264,252  
  

 

 

       

 

 

       

 

 

       

 

 

  

Subtotal

    $ 4,978,345        $ 153,493,164        $ —        $ 158,471,509  
  

 

 

       

 

 

       

 

 

       

 

 

  

Derivative Financial Instruments(a)

 

Liabilities:

 

Equity contracts

   $ (36,760 )       $ —        $             —        $ (36,760 ) 
  

 

 

       

 

 

       

 

 

       

 

 

  

The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.

 

  (a) 

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

 

See notes to financial statements.

 

 

SCHEDULES OF INVESTMENTS

   21

Schedule of Investments

July 31, 2020

   

iShares Edge MSCI Min Vol USA Index Fund

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks — 112.7%

 

Aerospace & Defense — 1.5%  

L3Harris Technologies, Inc.

     2,239     $ 376,891  

Lockheed Martin Corp.

     1,536       582,098  

Northrop Grumman Corp.

     227       73,777  
   

 

 

  
    1,032,766  
Air Freight & Logistics — 1.0%  

C.H. Robinson Worldwide, Inc.

     7,402       693,715  
   

 

 

  
Banks — 0.6%  

M&T Bank Corp.

     569       60,285  

Truist Financial Corp.

     1,102       41,281  

U.S. Bancorp

     6,989       257,475  

Wells Fargo & Co.

     1,541       37,385  
   

 

 

  
    396,426  
Beverages — 3.3%  

Brown-Forman Corp., Class B

     1,107       76,759  

Coca-Cola Co.

     23,006       1,086,804  

PepsiCo, Inc.

     8,468       1,165,705  
   

 

 

  
    2,329,268  
Biotechnology — 5.1%  

Amgen, Inc.

     717       175,428  

BioMarin Pharmaceutical, Inc.(a)

     1,145       137,182  

Gilead Sciences, Inc.

     13,839       962,226  

Incyte Corp.(a)

     1,474       145,572  

Regeneron Pharmaceuticals, Inc.(a)

     1,809       1,143,415  

Vertex Pharmaceuticals, Inc.(a)

     3,955       1,075,760  
   

 

 

  
    3,639,583  
Building Products — 0.1%  

Carrier Global Corp.

     2,182       59,438  
   

 

 

  
Capital Markets — 1.8%  

Cboe Global Markets, Inc.

     2,531       221,969  

CME Group, Inc.

     2,939       488,403  

Intercontinental Exchange, Inc.

     5,009       484,771  

MarketAxess Holdings, Inc.

     147       75,955  
   

 

 

  
    1,271,098  
Chemicals — 1.2%  

Air Products & Chemicals, Inc.

     1,020       292,363  

Ecolab, Inc.

     2,754       515,218  

Linde PLC

     227       55,640  
   

 

 

  
    863,221  
Commercial Services & Supplies — 4.6%  

Republic Services, Inc.

     12,923       1,127,532  

Waste Connections, Inc.

     9,760       999,131  

Waste Management, Inc.

     10,541       1,155,293  
   

 

 

  
    3,281,956  
Communications Equipment — 1.8%  

Cisco Systems, Inc.

     12,302       579,424  

Juniper Networks, Inc.

     3,577       90,784  

Motorola Solutions, Inc.

     4,400       615,120  
   

 

 

  
    1,285,328  
Containers & Packaging — 0.3%  

Amcor PLC(a)

     15,797       162,709  

Ball Corp.

     922       67,887  
   

 

 

  
    230,596  
Distributors — 0.2%  

Genuine Parts Co.

     1,387       125,038  
   

 

 

  
Diversified Financial Services — 0.6%  

Berkshire Hathaway, Inc., Class B(a)

     2,250       440,505  
   

 

 

  
Security   Shares     Value  
Diversified Telecommunication Services — 2.7%  

AT&T, Inc.

     23,601     $ 698,117  

Verizon Communications, Inc.

     20,518       1,179,375  
   

 

 

  
    1,877,492  
Electric Utilities — 6.7%  

Alliant Energy Corp.

     1,716       92,407  

American Electric Power Co., Inc.

     4,385       380,969  

Duke Energy Corp.

     9,173       777,320  

Evergy, Inc.

     3,291       213,355  

Eversource Energy

     2,623       236,254  

NextEra Energy, Inc.

     4,840       1,358,588  

Southern Co.

     14,240       777,646  

Xcel Energy, Inc.

     12,967       895,242  
   

 

 

  
    4,731,781  
Electronic Equipment, Instruments & Components — 1.7%  

Amphenol Corp., Class A

     4,620       488,611  

FLIR Systems, Inc.

     2,166       90,236  

Keysight Technologies, Inc.(a)

     5,389       538,307  

TE Connectivity Ltd.

     678       60,389  
   

 

 

  
    1,177,543  
Entertainment — 1.3%  

Take-Two Interactive Software, Inc.(a)

     2,578       422,844  

Walt Disney Co.

     4,381       512,314  
   

 

 

  
    935,158  
Equity Real Estate Investment Trusts (REITs) — 5.6%  

American Tower Corp.

     2,778       726,141  

AvalonBay Communities, Inc.

     1,319       201,965  

Camden Property Trust

     3,268       296,767  

Crown Castle International Corp.

     3,185       530,940  

Equinix, Inc.

     87       68,337  

Equity Residential

     7,747       415,472  

Essex Property Trust, Inc.

     1,012       223,389  

Extra Space Storage, Inc.

     2,503       258,660  

Mid-America Apartment Communities, Inc.

     1,556       185,460  

Public Storage

     3,381       675,794  

SBA Communications Corp.

     404       125,862  

UDR, Inc.

     6,630       240,006  
   

 

 

  
    3,948,793  
Food & Staples Retailing — 1.2%  

Costco Wholesale Corp.

     174       56,642  

Kroger Co.

     6,046       210,340  

Walmart, Inc.

     4,540       587,476  
   

 

 

  
    854,458  
Food Products — 5.1%  

Campbell Soup Co.

     3,400       168,538  

General Mills, Inc.

     2,872       181,712  

Hershey Co.

     6,658       968,140  

Hormel Foods Corp.

     15,406       783,549  

J.M. Smucker Co.

     1,869       204,375  

Kellogg Co.

     6,071       418,838  

McCormick & Co., Inc.

     2,296       447,490  

Mondelez International, Inc., Class A

     7,508       416,619  

Tyson Foods, Inc., Class A

     631       38,775  
   

 

 

  
    3,628,036  
Health Care Equipment & Supplies — 4.8%  

Abbott Laboratories

     2,419       243,448  

Baxter International, Inc.

     6,094       526,400  

Becton Dickinson & Co.

     813       228,729  

Cooper Cos., Inc.

     735       207,954  

Danaher Corp.

     4,001       815,404  

DENTSPLY SIRONA, Inc.

     1,317       58,738  

Medtronic PLC

     8,659       835,420  
 

 

 

22  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (continued)

July 31, 2020

   

iShares Edge MSCI Min Vol USA Index Fund

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Health Care Equipment & Supplies (continued)  

Stryker Corp.

     2,323     $ 449,036  

Zimmer Biomet Holdings, Inc.

     316       42,616  
   

 

 

  
    3,407,745  
Health Care Providers & Services — 2.0%  

Anthem, Inc.

     1,267       346,905  

Henry Schein, Inc.(a)

     623       42,819  

Humana, Inc.

     812       318,669  

Quest Diagnostics, Inc.

     450       57,182  

UnitedHealth Group, Inc.

     1,775       537,434  

Universal Health Services, Inc., Class B

     1,010       110,999  
   

 

 

  
    1,414,008  
Health Care Technology — 0.1%  

Cerner Corp.

     622       43,198  
   

 

 

  
Hotels, Restaurants & Leisure — 2.4%  

McDonald’s Corp.

     6,219       1,208,227  

Starbucks Corp.

     6,077       465,073  
   

 

 

  
    1,673,300  
Household Durables — 0.3%  

Garmin Ltd.

     2,171       214,039  
   

 

 

  
Household Products — 3.6%  

Church & Dwight Co., Inc.

     3,871       372,894  

Clorox Co.

     2,226       526,471  

Colgate-Palmolive Co.

     3,996       308,491  

Kimberly-Clark Corp.

     1,958       297,694  

Procter & Gamble Co.

     7,833       1,027,063  
   

 

 

  
    2,532,613  
Industrial Conglomerates — 0.3%  

Honeywell International, Inc.

     1,645       245,714  
   

 

 

  
Insurance — 10.3%  

Alleghany Corp.

     262       136,848  

Allstate Corp.

     5,221       492,810  

Aon PLC, Class A

     3,153       647,059  

Arch Capital Group Ltd.(a)

     7,979       245,354  

Arthur J Gallagher & Co.

     4,875       524,014  

Brown & Brown, Inc.

     8,461       384,722  

Chubb Ltd.

     5,394       686,332  

Cincinnati Financial Corp.

     1,629       126,948  

Erie Indemnity Co., Class A

     347       72,912  

Everest Re Group Ltd.

     2,360       516,344  

Fidelity National Financial, Inc.

     5,960       192,866  

Hartford Financial Services Group, Inc.

     6,083       257,432  

Loews Corp.

     1,143       41,617  

Markel Corp.(a)

     324       338,431  

Marsh & McLennan Cos., Inc.

     5,473       638,152  

Progressive Corp.

     4,385       396,141  

RenaissanceRe Holdings Ltd.

     2,478       446,982  

Travelers Cos., Inc.

     3,334       381,476  

W.R. Berkley Corp.

     8,490       524,257  

Willis Towers Watson PLC

     1,025       215,260  
   

 

 

  
    7,265,957  
Interactive Media & Services — 0.1%  

Alphabet, Inc., Class C(a)

     72       106,773  
   

 

 

  
Internet & Direct Marketing Retail — 0.1%  

eBay, Inc.

     1,258       69,542  
   

 

 

  
IT Services — 13.7%  

Accenture PLC, Class A

     4,886       1,098,275  

Akamai Technologies, Inc.(a)

     3,754       422,100  

Automatic Data Processing, Inc.

     2,873       381,850  

Black Knight, Inc.(a)

     8,658       648,657  
Security   Shares     Value  
IT Services (continued)  

Booz Allen Hamilton Holding Corp.

     2,653     $ 216,909  

Broadridge Financial Solutions, Inc.

     2,190       294,205  

Cognizant Technology Solutions Corp., Class A

     5,319       363,394  

Fidelity National Information Services, Inc.

     6,190       905,659  

Fiserv, Inc.(a)

     6,180       616,702  

FleetCor Technologies, Inc.(a)

     745       192,635  

International Business Machines Corp.

     2,204       270,960  

Jack Henry & Associates, Inc.

     4,439       791,474  

Mastercard, Inc., Class A

     2,355       726,588  

Paychex, Inc.

     10,675       767,746  

VeriSign, Inc.(a)

     1,470       311,170  

Visa, Inc., Class A

     5,896       1,122,598  

Western Union Co.

     23,901       580,316  
   

 

 

  
    9,711,238  
Machinery — 0.1%  

Otis Worldwide Corp.

     697       43,730  
   

 

 

  
Media — 1.5%  

Charter Communications, Inc., Class A(a)

     521       302,180  

Comcast Corp., Class A

     10,084       431,595  

Fox Corp., Class B(a)

     1,633       42,082  

Liberty Media Corp. — Liberty SiriusXM, Class A(a)

     1,389       48,323  

Omnicom Group, Inc.

     2,220       119,281  

Sirius XM Holdings, Inc.(b)

     15,202       89,388  
   

 

 

  
    1,032,849  
Metals & Mining — 1.6%  

Newmont Corp.

     16,564       1,146,229  
   

 

 

  
Multi-Utilities — 2.7%  

CMS Energy Corp.

     3,103       199,151  

Consolidated Edison, Inc.

     10,351       795,267  

Dominion Energy, Inc.

     4,304       348,753  

WEC Energy Group, Inc.

     6,048       576,132  
   

 

 

  
    1,919,303  
Multiline Retail — 1.3%  

Dollar General Corp.

     2,670       508,368  

Dollar Tree, Inc.(a)

     2,512       234,495  

Target Corp.

     1,355       170,568  
   

 

 

  
    913,431  
Oil, Gas & Consumable Fuels — 1.1%  

Cabot Oil & Gas Corp.

     3,203       59,896  

Cheniere Energy, Inc.(a)

     2,171       107,421  

Chevron Corp.

     473       39,704  

Exxon Mobil Corp.

     9,532       401,107  

Kinder Morgan, Inc.

     13,764       194,072  
   

 

 

  
    802,200  
Pharmaceuticals — 6.3%  

Bristol-Myers Squibb Co.

     4,559       267,431  

Eli Lilly & Co.

     6,262       941,116  

Johnson & Johnson

     7,318       1,066,672  

Merck & Co., Inc.

     14,130       1,133,791  

Pfizer, Inc.

     19,661       756,555  

Zoetis, Inc.

     2,131       323,230  
   

 

 

  
    4,488,795  
Professional Services — 0.4%  

Verisk Analytics, Inc.

     1,649       311,183  
   

 

 

  
Road & Rail — 0.2%  

AMERCO

     351       111,523  
   

 

 

  
Semiconductors & Semiconductor Equipment — 0.7%  

Broadcom, Inc.

     570       180,547  

Intel Corp.

     1,744       83,241  
 

 

 

SCHEDULES OF INVESTMENTS

   23

Schedule of Investments  (continued)

July 31, 2020

   

iShares Edge MSCI Min Vol USA Index Fund

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Semiconductors & Semiconductor Equipment (continued)  

Texas Instruments, Inc.

     1,574     $ 200,764  
   

 

 

  
    464,552  
Software — 6.7%  

Adobe, Inc.(a)

     1,954       868,201  

CDK Global, Inc.

     1,492       67,826  

Citrix Systems, Inc.

     6,725       960,061  

Intuit, Inc.

     546       167,278  

Microsoft Corp.

     5,855       1,200,334  

NortonLifeLock, Inc.

     1,969       42,235  

Oracle Corp.

     9,875       547,569  

Palo Alto Networks, Inc.(a)

     558       142,804  

Tyler Technologies, Inc.(a)(b)

     2,069       739,150  
   

 

 

  
    4,735,458  
Specialty Retail — 3.0%  

Advance Auto Parts, Inc.

     262       39,337  

AutoZone, Inc.(a)

     343       414,145  

Burlington Stores, Inc.(a)

     349       65,612  

Home Depot, Inc.

     2,603       691,070  

O’Reilly Automotive, Inc.(a)

     610       291,202  

Ross Stores, Inc.

     1,927       172,794  

Tiffany & Co.

     278       34,850  

TJX Cos., Inc.

     8,607       447,478  
   

 

 

  
    2,156,488  
Technology Hardware, Storage & Peripherals — 0.3%  

Apple, Inc.

     425       180,642  

Dell Technologies, Inc., Class C(a)

     832       49,779  
   

 

 

  
    230,421  
Textiles, Apparel & Luxury Goods — 0.4%  

NIKE, Inc., Class B

     2,696       263,156  
   

 

 

  
Tobacco — 0.5%  

Altria Group, Inc.

     6,206       255,377  

Philip Morris International, Inc.

     1,722       132,267  
   

 

 

  
    387,644  
Water Utilities — 0.1%  

American Water Works Co., Inc.

     400       58,908  
   

 

 

  
Security   Shares     Value  
Wireless Telecommunication Services — 1.7%  

T-Mobile U.S., Inc.(a)

     11,318     $ 1,215,327  
   

 

 

  

Total Common Stocks — 112.7%
(Cost — $69,601,841)

 

     79,767,523  
 

 

 

  

Investment Companies — 0.3%

 

Equity Fund — 0.3%

 

iShares Edge MSCI Min Vol USA ETF(b)(e)

     3,637       230,586  
   

 

 

  

Total Investment Companies — 0.3%
(Cost — $215,063)

 

     230,586  
 

 

 

  

Total Long-Term Investments — 113.0%
(Cost — $69,816,904)

 

     79,998,109  
 

 

 

  

Short-Term Securities — 1.4%

 

BlackRock Cash Funds: Institutional,
SL Agency Shares,

    

0.43%(c)(d)(e)

     713,692       714,477  

BlackRock Cash Funds: Treasury,
SL Agency Shares,

    

0.15%(c)(e)

     235,403       235,403  
   

 

 

  

Total Short-Term Securities — 1.4%
(Cost — $949,981)

 

     949,880  
   

 

 

  

Total Investments — 114.4%
(Cost — $70,766,885)

 

     80,947,989  

Liabilities in Excess of Other Assets — (14.4)%

 

     (10,186,731 ) 
   

 

 

  

Net Assets — 100.0%

 

   $ 70,761,258  
   

 

 

  

 

(a) 

Non-income producing security.

(b) 

All or a portion of this security is on loan.

(c) 

Annualized 7-day yield as of period end.

(d) 

Security was purchased with the cash collateral from loaned securities.

 
(e) 

Investments in issuers considered to be an affiliate/affiliates of the Fund during the year ended July 31, 2020 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliated Issuer    Shares
Held at
07/31/19		      Shares
Purchased		     Shares
Sold		      Shares
Held at
07/31/20		      Value at
07/31/20		      Income     Net
Realized
Gain (Loss) (a)		      Change in
Unrealized
Appreciation
(Depreciation)		  

BlackRock Cash Funds: Institutional, SL Agency Shares

      156,313        557,379 (b)      —        713,692      $ 714,477      $ 2,339 (c)    $ 808      $ (101 ) 

BlackRock Cash Funds: Treasury, SL Agency Shares

      201,619        33,784 (b)      —        235,403        235,403        8,033       —        —  

iShares Edge MSCI Min Vol USA ETF

      1,087        174,243       (171,693 )       3,637        230,586        4,666       28,248        10,284  
             

 

 

     

 

 

    

 

 

     

 

 

  
   $ 1,180,466      $ 15,038     $ 29,056      $ 10,183  
  

 

 

     

 

 

    

 

 

     

 

 

  

 

  (a) 

Includes net capital gain distributions, if applicable.

 
  (b) 

Represents net shares 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.

 

For Fund compliance purposes, the Fund’s industry classifications refer to one or more of the industry sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such industry sub-classifications for reporting ease.

 

 

24  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (continued)

July 31, 2020

   

iShares Edge MSCI Min Vol USA Index Fund

 

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

      1          09/18/20        $ 163        $ (52 ) 
                 

 

 

  

Derivative Financial Instruments Categorized by Risk Exposure

As of year 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  

Liabilities — Derivative Financial Instruments

                     

Futures contracts

                     

Unrealized depreciation on futures contract(a)

    $ —      $ —      $ 52      $ —      $ —      $ —      $ 52  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

  (a) 

Net cumulative unrealized appreciation (depreciation) on futures contracts and centrally cleared swaps, 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 year ended July 31, 2020, 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

    $ —      $ —      $ 53,852      $ —      $ —      $ —      $ 53,852  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
Net Change in Unrealized Appreciation (Depreciation) on:                                                 

Futures contracts

    $ —      $ —      $ (52 )     $ —      $ —      $ —      $ (52 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

         

Average notional value of contracts — long

    $ 190,916  

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 investments and derivative financial instruments. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments, refer to the Notes to Financial Statements.

The following tables summarize the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy:

 

      Level 1        Level 2        Level 3        Total  

Assets:

 

Investments:

 

Common Stocks

   $ 79,767,523        $ —        $             —        $ 79,767,523  

Investment Companies

      230,586          —          —          230,586  

Short-Term Securities

     949,880          —          —          949,880  
  

 

 

       

 

 

       

 

 

       

 

 

  
   $ 80,947,989        $ —        $ —        $ 80,947,989  
  

 

 

       

 

 

       

 

 

       

 

 

  

Derivative Financial Instruments(a)

 

Liabilities:

 

Equity contracts

   $ (52 )       $             —        $ —        $ (52 ) 
  

 

 

       

 

 

       

 

 

       

 

 

  

The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.

 

  (a) 

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

 

See notes to financial statements.

 

 

SCHEDULES OF INVESTMENTS

   25

Schedule of Investments  

July 31, 2020

   

iShares Edge MSCI Multifactor Intl Index Fund

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks — 97.9%

 

Australia — 14.1%  

AGL Energy Ltd.

     4,352     $ 51,551  

Aurizon Holdings Ltd.

     13,281       42,352  

BHP Group PLC

     11,097       239,955  

BlueScope Steel Ltd.

     3,490       27,911  

Coca-Cola Amatil Ltd.

     3,494       20,393  

Cochlear Ltd.

     397       54,176  

Dexus

     7,318       44,423  

Fortescue Metals Group Ltd.

     11,599       144,375  

GPT Group

     5,320       14,722  

Magellan Financial Group Ltd.

     868       37,710  

Medibank Pvt Ltd.

     18,712       37,370  

Mirvac Group

     26,757       39,817  

Rio Tinto Ltd.

     2,528       185,021  

Rio Tinto PLC

     4,252       258,829  

Woolworths Group Ltd.

     8,615       238,498  
   

 

 

  
    1,437,103  
Belgium — 2.8%  

Ageas SA

     1,222       45,747  

Colruyt SA

     379       22,011  

Groupe Bruxelles Lambert SA

     608       52,738  

Proximus SADP

     1,054       21,682  

Sofina SA

     106       29,690  

UCB SA

     860       110,503  
   

 

 

  
    282,371  
Brazil — 0.4%  

Yamana Gold, Inc.

     6,518       42,336  
   

 

 

  
Canada — 12.4%  

Atco Ltd., Class I

     534       16,617  

B2Gold Corp.

     7,102       49,204  

CGI, Inc.(a)

     1,644       117,422  

CI Financial Corp.

     1,438       19,765  

Constellation Software, Inc.

     137       162,051  

Empire Co. Ltd., Class A

     1,189       30,545  

First Capital Real Estate Investment Trust

     733       7,431  

Hydro One Ltd.(b)

     2,236       47,643  

iA Financial Corp. Inc.

     716       25,140  

IGM Financial, Inc.

     573       14,087  

Intact Financial Corp.

     948       103,502  

Kinross Gold Corp.(a)

     8,601       80,266  

Kirkland Lake Gold Ltd.

     1,866       101,906  

Loblaw Cos. Ltd.

     1,226       63,604  

Magna International, Inc.

     1,979       91,470  

Metro, Inc.

     1,721       75,498  

Onex Corp.

     583       25,915  

Open Text Corp.

     1,844       83,000  

RioCan Real Estate Investment Trust

     1,076       12,018  

SmartCentres Real Estate Investment Trust

     515       7,797  

Thomson Reuters Corp.

     1,199       83,660  

WSP Global, Inc.

     727       45,652  
   

 

 

  
    1,264,193  
China — 0.1%  

Yangzijiang Shipbuilding Holdings Ltd.

     15,500       10,387  
   

 

 

  
Denmark — 4.2%  

Ambu A/S

     1,118       39,033  

Coloplast A/S, Class B

     814       138,948  

Novo Nordisk A/S, Class B

     3,050       200,118  

Pandora A/S

     685       43,567  
   

 

 

  
    421,666  
Security   Shares     Value  
Finland — 0.9%  

Elisa OYJ

     969     $ 57,470  

Orion OYJ, Class B

     723       31,544  
   

 

 

  
    89,014  
France — 4.3%  

Alstom SA(a)

     404       22,512  

Atos SE(a)

     680       58,146  

BioMerieux

     282       45,450  

Bouygues SA(a)

     1,539       54,368  

Carrefour SA

     2,264       35,981  

CNP Assurances(a)

     1,176       14,284  

Iliad SA

     101       19,753  

Ipsen SA

     259       24,839  

La Francaise des Jeux SAEM(b)

     589       21,575  

Peugeot SA(a)

     4,019       64,604  

SCOR SE(a)

     1,099       28,285  

UbiSoft Entertainment SA(a)

     620       51,784  
   

 

 

  
    441,581  
Germany — 2.4%  

Brenntag AG

     1,058       65,292  

Carl Zeiss Meditec AG, Bearer Shares(a)

     277       28,990  

Hannover Rueck SE

     416       70,375  

HeidelbergCement AG

     1,019       56,550  

RWE AG

     724       27,291  
   

 

 

  
    248,498  
Hong Kong — 2.9%  

CK Asset Holdings Ltd.

     17,500       97,172  

Hang Lung Properties Ltd.

     14,000       34,347  

Hongkong Land Holdings Ltd.

     7,900       30,093  

Kerry Properties Ltd.

     4,500       10,708  

Sino Land Co. Ltd.

     20,235       24,518  

Swire Pacific Ltd., Class A

     3,500       17,235  

Swire Properties Ltd.

     7,800       18,026  

WH Group Ltd.(b)

     65,500       58,305  
   

 

 

  
    290,404  
Italy — 0.6%  

Leonardo SpA

     2,510       16,117  

Telecom Italia SpA

     98,558       39,823  
   

 

 

  
    55,940  
Japan — 19.5%  

AGC, Inc.

     1,300       36,544  

Alfresa Holdings Corp.

     1,300       26,621  

Amada Co. Ltd.

     2,200       14,785  

Astellas Pharma, Inc.

     12,700       198,094  

Brother Industries Ltd.

     1,500       23,346  

Calbee, Inc.

     600       19,066  

Daicel Corp.

     1,700       11,369  

Electric Power Development Co. Ltd.

     1,000       13,642  

FUJIFILM Holdings Corp.

     2,400       107,334  

Fujitsu Ltd.

     1,300       174,064  

Hino Motors Ltd.

     2,000       11,533  

Hitachi Ltd.

     6,600       197,697  

Inpex Corp.

     7,000       39,956  

Japan Airlines Co. Ltd.

     700       11,331  

JTEKT Corp.

     1,400       9,317  

Kamigumi Co. Ltd.

     700       12,776  

Kurita Water Industries Ltd.

     700       18,827  

Marubeni Corp.

     10,700       49,262  

Medipal Holdings Corp.

     1,200       21,976  

Mitsubishi Heavy Industries Ltd.

     2,200       51,180  

Mitsubishi UFJ Lease & Finance Co. Ltd.

     2,700       11,461  

NEC Corp.

     1,700       95,243  

NH Foods Ltd.

     600       26,371  
 

 

 

26  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (continued)

July 31, 2020

   

iShares Edge MSCI Multifactor Intl Index Fund

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Japan (continued)  

Nippon Telegraph & Telephone Corp.

     8,800     $ 204,261  

Obayashi Corp.

     4,500       40,178  

ORIX Corp.

     9,100       98,418  

Ricoh Co. Ltd.

     4,600       29,623  

Seiko Epson Corp.

     1,900       20,157  

Shimamura Co. Ltd.

     100       6,954  

Shinsei Bank Ltd.

     1,100       12,427  

Shizuoka Bank Ltd.

     2,200       14,287  

Sumitomo Dainippon Pharma Co. Ltd.

     1,100       13,738  

Sumitomo Heavy Industries Ltd.

     800       15,588  

Sumitomo Rubber Industries Ltd.

     1,200       9,983  

Sundrug Co. Ltd.

     500       17,015  

Suzuken Co. Ltd.

     500       17,786  

Taiheiyo Cement Corp.

     800       17,362  

TIS, Inc.

     1,500       32,123  

Toho Gas Co. Ltd.

     500       21,820  

Tohoku Electric Power Co., Inc.

     3,000       28,351  

Tokyo Electric Power Co. Holdings, Inc.(a)

     9,900       26,406  

Tokyo Gas Co. Ltd.

     2,600       55,203  

Toppan Printing Co. Ltd.

     1,800       26,985  

Tosoh Corp.

     1,800       24,160  

Toyo Suisan Kaisha Ltd.

     600       36,477  

Toyoda Gosei Co. Ltd.

     400       7,843  

Yamazaki Baking Co. Ltd.

     800       13,424  

Yokohama Rubber Co. Ltd.

     700       8,954  
   

 

 

  
    1,981,318  
Jordan — 0.3%  

Hikma Pharmaceuticals PLC

     996       27,909  
   

 

 

  
Netherlands — 8.2%  

Aegon NV

     12,170       35,663  

EXOR NV

     739       41,500  

Koninklijke Ahold Delhaize NV

     7,497       215,920  

Koninklijke Philips NV(a)

     4,883       252,309  

Koninklijke Vopak NV

     483       26,371  

NN Group NV

     2,006       73,424  

Randstad NV(a)

     820       39,497  

Wolters Kluwer NV

     1,875       147,671  
   

 

 

  
    832,355  
New Zealand — 0.9%  

Fisher & Paykel Healthcare Corp. Ltd.

     2,279       54,592  

Spark New Zealand Ltd.

     12,672       41,528  
   

 

 

  
    96,120  
Singapore — 0.5%  

Singapore Exchange Ltd.

     5,200       31,020  

Venture Corp. Ltd.

     1,800       23,507  
   

 

 

  
    54,527  
Spain — 0.9%  

Enagas SA

     916       23,110  

Mapfre SA

     7,403       13,405  

Red Electrica Corp. SA

     3,073       59,908  
   

 

 

  
    96,423  
Sweden — 2.7%  

Boliden AB

     1,873       51,148  

Evolution Gaming Group AB(b)

     871       59,107  

ICA Gruppen AB

     618       30,358  

Kinnevik AB, Class B

     1,674       58,926  

L E Lundbergforetagen AB, B Shares(a)

     513       24,097  

Svenska Cellulosa AB SCA, B Shares, Class B(a)

     4,150       50,401  
   

 

 

  
    274,037  
Switzerland — 8.3%  

Adecco Group AG, Registered Shares

     1,062       50,183  

Logitech International SA, Registered Shares

     1,126       82,140  
Security   Shares     Value  
Switzerland (continued)  

Nestle SA, Registered Shares

     348     $ 41,385  

Roche Holding AG

     993       343,932  

SGS SA, Registered Shares

     36       94,279  

Sonova Holding AG, Registered Shares(a)

     382       86,372  

STMicroelectronics NV

     1,876       52,710  

Swisscom AG, Registered Shares

     179       95,150  
   

 

 

  
    846,151  
United Kingdom — 9.9%  

3i Group PLC

     6,707       77,201  

Aviva PLC

     26,861       92,376  

Barratt Developments PLC

     6,976       46,339  

Berkeley Group Holdings PLC

     816       47,345  

Burberry Group PLC

     2,756       44,906  

Direct Line Insurance Group PLC

     9,470       36,646  

Fiat Chrysler Automobiles NV(a)

     7,457       75,811  

Halma PLC

     766       21,757  

Hargreaves Lansdown PLC

     1,951       44,277  

J. Sainsbury PLC

     12,156       29,628  

Kingfisher PLC

     14,347       45,338  

M&G PLC

     17,407       36,432  

Pearson PLC

     5,347       36,740  

Persimmon PLC(a)

     2,184       68,185  

RSA Insurance Group PLC

     7,066       39,439  

Sage Group PLC

     7,476       70,946  

Smith & Nephew PLC

     5,956       117,556  

Taylor Wimpey PLC(a)

     22,490       34,692  

WM Morrison Supermarkets PLC

     16,546       40,136  
   

 

 

  
    1,005,750  
United States — 1.6%  

AerCap Holdings NV(a)

     840       22,621  

Ferguson PLC

     1,535       135,316  
   

 

 

  
    157,937  
 

 

 

  

Total Common Stocks — 97.9%
(Cost — $9,526,248)

 

     9,956,020  
 

 

 

  

Preferred Stocks — 0.8%

 

Germany — 0.8%  

Fuchs Petrolub SE, Preference Shares, 0.00%

     476       20,786  

Porsche Automobile Holding SE, Preference Shares, 0.00%

     1,044       59,093  
   

 

 

  

Total Preferred Stocks — 0.8%
(Cost — $104,979)

 

     79,879  
 

 

 

  

Total Long-Term Investments — 98.7%
(Cost — $9,631,227)

 

     10,035,899  
 

 

 

  

Short-Term Securities — 0.2%

 

BlackRock Cash Funds: Treasury,
SL Agency Shares,

    

0.15%(c)(d)

     18,928       18,928  
   

 

 

  

Total Short-Term Securities — 0.2%
(Cost — $18,928)

 

     18,928  
 

 

 

  

Total Investments — 98.9%
(Cost — $9,650,155)

 

     10,054,827  

Other Assets Less Liabilities — 1.1%

 

     107,698  
 

 

 

  

Net Assets — 100.0%

 

   $ 10,162,525  
 

 

 

  

 

(a) 

Non-income producing security.

(b) 

Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

(c) 

Annualized 7-day yield as of period end.

 

 

 

SCHEDULES OF INVESTMENTS

   27

Schedule of Investments  (continued)

July 31, 2020

   

iShares Edge MSCI Multifactor Intl Index Fund

 

(d) 

Investments in issuers considered to be an affiliate/affiliates of the Fund during the year ended July 31, 2020 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliated Issuer    Shares
Held at
07/31/19		      Shares
Purchased		      Shares
Sold		     Shares
Held at
07/31/20		      Value at
07/31/20		      Income     Net
Realized
Gain (Loss) (a)		      Change in
Unrealized
Appreciation
(Depreciation)		  

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

      35,420        —        (35,420 )(c)      —      $ —      $ 154 (d)    $ 11      $ (1 ) 

BlackRock Cash Funds: Treasury, SL Agency Shares

      285,315        —        (266,387 )(c)      18,928        18,928        195       —        —  
             

 

 

     

 

 

    

 

 

     

 

 

  
   $ 18,928      $ 349     $ 11      $ (1 ) 
  

 

 

     

 

 

    

 

 

     

 

 

  

 

  (a) 

Includes net capital gain distributions, if applicable.

 
  (b) 

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

 
  (c) 

Represents net shares purchased (sold).

 
  (d) 

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

                  

Euro Stoxx 50 Index

      3          09/18/20        $ 112        $ (2,231 ) 
                 

 

 

  
                  $ (2,231 ) 
                 

 

 

  

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  

Liabilities — Derivative Financial Instruments

                     

Futures contracts

                     

Unrealized depreciation on futures contracts(a)

    $ —      $ —      $ 2,231      $ —      $ —      $ —      $ 2,231  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

  (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 year ended July 31, 2020, 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

    $ —      $ —      $ (2,196 )     $ —      $ —      $ —      $ (2,196 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
Net Change in Unrealized Appreciation (Depreciation) on:                                                 

Futures contracts

    $ —      $ —      $ (3,606 )     $ —      $ —      $ —      $ (3,606 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

         

Average notional value of contracts — long

    $ 110,152  

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

 

 

28  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (continued)

July 31, 2020

   

iShares Edge MSCI Multifactor Intl Index Fund

 

Fair Value Hierarchy as of Period End

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

The following tables summarize the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy:

 

      Level 1        Level 2        Level 3        Total  

Assets:

                 

Investments:

                 

Common Stocks:

                  

Australia

   $ —        $ 1,437,103        $ —        $ 1,437,103  

Belgium

     —          282,371          —          282,371  

Brazil

     42,336          —          —          42,336  

Canada

     1,264,193          —          —          1,264,193  

China

     —          10,387          —          10,387  

Denmark

     —          421,666          —          421,666  

Finland

     —          89,014          —          89,014  

France

     —          441,581          —          441,581  

Germany

     —          248,498          —          248,498  

Hong Kong

     —          290,404          —          290,404  

Italy

     —          55,940          —          55,940  

Japan

     —          1,981,318          —          1,981,318  

Jordan

     —          27,909          —          27,909  

Netherlands

     174,042          658,313          —          832,355  

New Zealand

     —          96,120          —          96,120  

Singapore

     —          54,527          —          54,527  

Spain

     —          96,423          —          96,423  

Sweden

     —          274,037          —          274,037  

Switzerland

     —          846,151          —          846,151  

United Kingdom

     —          1,005,750          —          1,005,750  

United States

     22,621          135,316          —          157,937  

Preferred Stocks

     —          79,879          —          79,879  

Short-Term Securities

     18,928          —          —          18,928  
  

 

 

       

 

 

       

 

 

       

 

 

  
   $ 1,522,120        $ 8,532,707        $             —        $ 10,054,827  
  

 

 

       

 

 

       

 

 

       

 

 

  

Derivative Financial Instruments(a)

                  

Liabilities:

                 

Equity Contracts

   $ (2,231 )       $ —        $ —        $ (2,231 ) 
  

 

 

       

 

 

       

 

 

       

 

 

  

The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.

 

  (a) 

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

 

See notes to financial statements.

 

 

SCHEDULES OF INVESTMENTS

   29

Schedule of Investments

July 31, 2020

   

iShares Edge MSCI Multifactor USA Index Fund

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks — 99.4%

 

Aerospace & Defense — 1.0%  

Huntington Ingalls Industries, Inc.

     222     $ 38,563  

Teledyne Technologies, Inc.(a)

     194       59,500  

Textron, Inc.

     1,355       47,344  
   

 

 

  
    145,407  
Air Freight & Logistics — 1.1%  

C.H. Robinson Worldwide, Inc.

     803       75,257  

Expeditors International of Washington, Inc.

     1,010       85,355  
   

 

 

  
    160,612  
Auto Components — 0.8%  

Autoliv, Inc.

     442       28,743  

BorgWarner, Inc.

     1,238       45,311  

Lear Corp.

     310       34,218  
   

 

 

  
    108,272  
Biotechnology — 4.5%  

Alexion Pharmaceuticals, Inc.(a)

     1,320       135,287  

Biogen, Inc.(a)

     1,038       285,128  

Regeneron Pharmaceuticals, Inc.(a)

     353       223,121  
   

 

 

  
    643,536  
Building Products — 1.2%  

Carrier Global Corp.

     4,889       133,176  

Owens Corning

     654       39,548  
   

 

 

  
    172,724  
Capital Markets — 2.5%  

Franklin Resources, Inc.

     1,629       34,291  

MarketAxess Holdings, Inc.

     202       104,373  

SEI Investments Co.

     761       39,823  

T. Rowe Price Group, Inc.

     1,259       173,868  
   

 

 

  
    352,355  
Chemicals — 1.6%  

Celanese Corp.

     667       64,833  

Eastman Chemical Co.

     811       60,525  

LyondellBasell Industries NV, Class A

     1,591       99,469  
   

 

 

  
    224,827  
Commercial Services & Supplies — 0.3%  

Rollins, Inc.

     778       40,767  
   

 

 

  
Communications Equipment — 0.7%  

F5 Networks, Inc.(a)

     363       49,332  

Juniper Networks, Inc.

     1,954       49,592  
   

 

 

  
    98,924  
Construction & Engineering — 0.4%  

Jacobs Engineering Group, Inc.

     722       61,623  
   

 

 

  
Containers & Packaging — 0.6%  

Packaging Corp. of America

     503       48,348  

Westrock Co.

     1,536       41,257  
   

 

 

  
    89,605  
Diversified Financial Services — 0.3%  

Voya Financial, Inc.

     750       37,050  
   

 

 

  
Diversified Telecommunication Services — 2.6%  

AT&T, Inc.

     10,556       312,246  

Verizon Communications, Inc.

     1,062       61,044  
   

 

 

  
    373,290  
Electric Utilities — 2.8%  

Exelon Corp.

     5,192       200,463  

OGE Energy Corp.

     1,199       39,447  

Pinnacle West Capital Corp.

     670       55,664  
Security   Shares     Value  
Electric Utilities (continued)  

PPL Corp.

     3,798     $ 101,103  
   

 

 

  
    396,677  
Electrical Equipment — 1.5%  

Eaton Corp. PLC

     2,232       207,866  
   

 

 

  
Electronic Equipment, Instruments & Components — 2.9%  

Arrow Electronics, Inc.(a)

     443       31,728  

CDW Corp.

     773       89,861  

FLIR Systems, Inc.

     722       30,078  

Keysight Technologies, Inc.(a)

     989       98,791  

TE Connectivity Ltd.

     1,795       159,881  
   

 

 

  
    410,339  
Entertainment — 2.2%  

Activision Blizzard, Inc.

     739       61,063  

Electronic Arts, Inc.(a)

     1,727       244,578  
   

 

 

  
    305,641  
Equity Real Estate Investment Trusts (REITs) — 3.9%  

AvalonBay Communities, Inc.

     222       33,993  

Camden Property Trust

     513       46,586  

Duke Realty Corp.

     1,890       75,959  

Essex Property Trust, Inc.

     86       18,984  

Host Hotels & Resorts, Inc.

     3,931       42,376  

Medical Properties Trust, Inc.

     2,725       54,854  

National Retail Properties, Inc.

     867       30,735  

Omega Healthcare Investors, Inc.

     1,359       44,004  

Public Storage

     840       167,899  

Vornado Realty Trust

     968       33,415  
   

 

 

  
    548,805  
Food & Staples Retailing — 5.3%  

Kroger Co.

     4,774       166,087  

Walgreens Boots Alliance, Inc.

     4,490       182,788  

Walmart, Inc.

     3,167       409,810  
   

 

 

  
    758,685  
Food Products — 1.4%  

Ingredion, Inc.

     404       34,946  

J.M. Smucker Co.

     608       66,485  

Tyson Foods, Inc., Class A

     1,575       96,784  
   

 

 

  
    198,215  
Gas Utilities — 0.5%  

Atmos Energy Corp.

     614       65,078  
   

 

 

  
Health Care Equipment & Supplies — 2.8%  

Cooper Cos., Inc.

     259       73,279  

ResMed, Inc.

     768       155,527  

Varian Medical Systems, Inc.(a)

     475       67,792  

West Pharmaceutical Services, Inc.

     394       105,935  
   

 

 

  
    402,533  
Health Care Providers & Services — 6.9%  

Anthem, Inc.

     1,286       352,107  

DaVita, Inc.(a)

     527       46,054  

Henry Schein, Inc.(a)

     862       59,245  

Humana, Inc.

     788       309,251  

Molina Healthcare, Inc.(a)

     351       64,830  

Quest Diagnostics, Inc.

     720       91,490  

Universal Health Services, Inc., Class B

     480       52,752  
   

 

 

  
    975,729  
Health Care Technology — 0.9%  

Cerner Corp.

     1,860       129,177  
   

 

 

  
Household Durables — 2.0%  

Garmin Ltd.

     698       68,816  

Mohawk Industries, Inc.(a)

     370       29,544  
 

 

 

30  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (continued)

July 31, 2020

   

iShares Edge MSCI Multifactor USA Index Fund

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Household Durables (continued)  

NVR, Inc.(a)

     18     $ 70,743  

PulteGroup, Inc.

     1,411       61,520  

Whirlpool Corp.

     337       54,971  
   

 

 

  
    285,594  
Independent Power and Renewable Electricity Producers — 0.3%  

NRG Energy, Inc.

     1,468       49,633  
   

 

 

  
Insurance — 3.6%  

Alleghany Corp.

     78       40,741  

Arch Capital Group Ltd.(a)

     733       22,540  

Athene Holding Ltd., Class A(a)

     654       21,091  

Brown & Brown, Inc.

     1,289       58,611  

Erie Indemnity Co., Class A

     138       28,996  

Everest Re Group Ltd.

     216       47,259  

Fidelity National Financial, Inc.

     1,628       52,682  

Globe Life, Inc.

     556       44,258  

Hartford Financial Services Group, Inc.

     1,930       81,678  

Lincoln National Corp.

     1,067       39,767  

Loews Corp.

     1,447       52,685  

Reinsurance Group of America, Inc.

     328       27,962  
   

 

 

  
    518,270  
Internet & Direct Marketing Retail — 1.8%  

Amazon.com, Inc.(a)

     80       253,174  
   

 

 

  
IT Services — 2.8%  

Akamai Technologies, Inc.(a)

     966       108,617  

Black Knight, Inc.(a)

     807       60,460  

Booz Allen Hamilton Holding Corp.

     757       61,892  

EPAM Systems, Inc.(a)

     293       84,994  

Jack Henry & Associates, Inc.

     457       81,483  
   

 

 

  
    397,446  
Life Sciences Tools & Services — 2.1%  

Agilent Technologies, Inc.

     1,654       159,330  

Bio-Rad Laboratories, Inc., Class A(a)

     133       69,810  

Waters Corp.(a)(b)

     356       75,882  
   

 

 

  
    305,022  
Machinery — 1.4%  

Cummins, Inc.

     787       152,096  

Snap-on, Inc.

     314       45,803  
   

 

 

  
    197,899  
Media — 1.2%  

Cable One, Inc.

     28       51,032  

Discovery, Inc., Class A(a)

     945       19,939  

Discovery, Inc., Class C(a)

     2,007       38,032  

Liberty Media Corp. — Liberty SiriusXM, Class C(a)

     833       29,147  

News Corp., Class A

     2,076       26,407  
   

 

 

  
    164,557  
Metals & Mining — 0.7%  

Nucor Corp.

     1,607       67,414  

Steel Dynamics, Inc.

     1,273       34,893  
   

 

 

  
    102,307  
Multi-Utilities — 1.8%  

Ameren Corp.

     1,313       105,355  

Public Service Enterprise Group, Inc.

     2,663       148,968  
   

 

 

  
    254,323  
Multiline Retail — 2.4%  

Target Corp.

     2,730       343,652  
   

 

 

  
Oil, Gas & Consumable Fuels — 0.5%  

Cabot Oil & Gas Corp.

     2,403       44,936  

HollyFrontier Corp.

     831       22,853  
   

 

 

  
    67,789  
Security   Shares     Value  
Pharmaceuticals — 0.9%  

Jazz Pharmaceuticals PLC(a)

     339     $ 36,697  

Mylan NV(a)

     3,103       49,989  

Perrigo Co. PLC

     683       36,213  
   

 

 

  
    122,899  
Professional Services — 0.2%  

Robert Half International, Inc.

     628       31,946  
   

 

 

  
Real Estate Management & Development — 0.8%  

CBRE Group, Inc., Class A(a)

     1,996       87,445  

Jones Lang LaSalle, Inc.

     307       30,365  
   

 

 

  
    117,810  
Road & Rail — 1.5%  

AMERCO

     48       15,251  

Kansas City Southern

     532       91,424  

Old Dominion Freight Line, Inc.

     570       104,208  
   

 

 

  
    210,883  
Semiconductors & Semiconductor Equipment — 7.1%  

Intel Corp.

     7,273       347,140  

Micron Technology, Inc.(a)

     6,624       331,564  

Qorvo, Inc.(a)

     690       88,424  

Skyworks Solutions, Inc.

     1,015       147,764  

Teradyne, Inc.

     999       88,871  
   

 

 

  
    1,003,763  
Software — 9.9%  

ANSYS, Inc.(a)

     449       139,459  

Cadence Design Systems, Inc.(a)

     1,671       182,557  

Citrix Systems, Inc.

     693       98,933  

Intuit, Inc.

     1,234       378,061  

Microsoft Corp.

     1,841       377,423  

NortonLifeLock, Inc.

     3,398       72,887  

Synopsys, Inc.(a)

     803       159,974  
   

 

 

  
    1,409,294  
Specialty Retail — 1.0%  

Best Buy Co., Inc.

     1,389       138,331  
   

 

 

  
Technology Hardware, Storage & Peripherals — 6.4%  

Apple, Inc.

     1,310       556,803  

Hewlett Packard Enterprise Co.

     7,779       76,779  

HP, Inc.

     8,547       150,256  

NetApp, Inc.

     1,319       58,432  

Seagate Technology PLC

     1,396       63,127  
   

 

 

  
    905,397  
Textiles, Apparel & Luxury Goods — 1.0%  

Lululemon Athletica, Inc.(a)

     389       126,655  

Ralph Lauren Corp.

     297       21,176  
   

 

 

  
    147,831  
Trading Companies & Distributors — 1.3%  

HD Supply Holdings, Inc.(a)

     974       34,187  

United Rentals, Inc.(a)

     442       68,674  

W.W. Grainger, Inc.

     248       84,699  
   

 

 

  
    187,560  
 

 

 

  

Total Common Stocks — 99.4%
(Cost — $11,910,975)

 

     14,123,117  
 

 

 

  

Investment Companies — 0.5%

 

Equity Fund — 0.5%

 

iShares Edge MSCI Multifactor USA ETF(e)

     2,226       72,478  
   

 

 

  

Total Investment Companies — 0.5%
(Cost — $69,267)

 

     72,478  
   

 

 

  

Total Long-Term Investments — 99.9%
(Cost — $11,980,242)

 

     14,195,595  
 

 

 

  
 

 

 

SCHEDULES OF INVESTMENTS

   31

Schedule of Investments  (continued)

July 31, 2020

   

iShares Edge MSCI Multifactor USA Index Fund

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Short-Term Securities — 0.8%

 

BlackRock Cash Funds: Institutional,
SL Agency Shares,

    

0.43%(c)(d)(e)

     77,203     $ 77,288  

BlackRock Cash Funds: Treasury,
SL Agency Shares,

    

0.15%(d)(e)

     26,278       26,278  
   

 

 

  

Total Short-Term Securities — 0.8%
(Cost — $103,566)

 

     103,566  
   

 

 

  

Total Investments — 100.7%
(Cost — $12,083,808)

 

     14,299,161  

Liabilities in Excess of Other Assets — (0.7)%

 

     (93,148 ) 
   

 

 

  

Net Assets — 100.0%

 

   $ 14,206,013  
   

 

 

  

 

 

(a) 

Non-income producing security.

(b) 

All or a portion of this security is on loan.

(c) 

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

(d) 

Annualized 7-day yield as of period end.

 
(e) 

Investments in issuers considered to be an affiliate/affiliates of the Fund during the year ended July 31, 2020 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliated Issuer    Shares
Held at
07/31/19		      Shares
Purchased		     Shares
Sold		     Shares
Held at
07/31/20		      Value at
07/31/20		      Income     Net
Realized
Gain (Loss) (a)		      Change in
Unrealized
Appreciation
(Depreciation)		  

BlackRock Cash Funds: Institutional, SL Agency Shares

      38,783        38,420 (b)      —       77,203      $ 77,288      $ 1,100 (c)    $ 222      $ —  

BlackRock Cash Funds: Treasury, SL Agency Shares

      45,537        —       (19,259 )(b)      26,278        26,278        453       —        —  

iShares Edge MSCI Multifactor USA ETF

      421        42,524       (40,719 )      2,226        72,478        1,344       5,347        1,641  
            

 

 

     

 

 

    

 

 

     

 

 

  
   $ 176,044      $ 2,897     $ 5,569      $ 1,641  
  

 

 

     

 

 

    

 

 

     

 

 

  

 

  (a) 

Includes net capital gain distributions, if applicable.

 
  (b) 

Represents net shares 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.

 

For Fund compliance purposes, the Fund’s industry classifications refer to one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by the investment advisor. These definitions may not apply for purposes of this report, which may combine such industry sub-classifications for reporting ease.

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of investments. For information about the Fund’s policy regarding valuation of investments, refer to the Notes to Financial Statements.

The following tables summarize the Fund’s investments categorized in the disclosure hierarchy:

 

      Level 1        Level 2        Level 3        Total  

Assets:

                 

Investments:

                 

Long-Term Investments:

                  

Common Stocks

   $ 14,123,117        $ —        $ —        $ 14,123,117  

Investment Companies

     72,478          —          —          72,478  

Short-Term Securities

     103,566          —          —          103,566  
  

 

 

       

 

 

       

 

 

       

 

 

  
   $ 14,299,161        $             —        $             —        $ 14,299,161  
  

 

 

       

 

 

       

 

 

       

 

 

  

The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.

See notes to financial statements.

 

 

32  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities

July 31, 2020

 

     iShares Edge MSCI
Min Vol EAFE
Index Fund		     iShares Edge MSCI
Min Vol USA
Index Fund		      iShares Edge MSCI
Multifactor Intl
Index Fund		     iShares Edge MSCI
Multifactor USA
Index Fund		  

ASSETS

         

Investments at value — unaffiliated(a)(b)

   $ 157,207,257     $ 79,767,523      $ 10,035,899     $ 14,123,117  

Investments at value — affiliated(c)

     1,264,252       1,180,466        18,928       176,044  

Cash

     —       —        —       2,703  

Cash pledged for futures contracts

     130,520       14,000        18,847       —  

Foreign currency at value(d)

     926,033       —        95,203       —  

Receivables:

         

Investments sold

     —       —        —       1,011  

Securities lending income — affiliated

     581       285        —       78  

Capital shares sold

     27,117       57,703        30       —  

Dividends — affiliated

     38       74        —       10,547  

Dividends — unaffiliated

     842,882       73,247        26,251       —  

From the Manager

     4,207       12,573        4,486       8,410  

Variation margin on futures contracts

     —       735        —       —  

Prepaid expenses

     37,359       39,240        35,136       35,145  
 

 

 

    

 

 

     

 

 

    

 

 

  

Total assets

     160,440,246       81,145,846        10,234,780       14,357,055  
 

 

 

    

 

 

     

 

 

    

 

 

  

LIABILITIES

         

Bank overdraft

     181,518       —        —       —  

Cash collateral on securities loaned at value

     1,264,845       714,637        —       77,288  

Payables:

         

Capital shares redeemed

     51,613       9,580,532        —       17,729  

Trustees’ and Officer’s fees

     3,130       2,874        2,724       2,723  

Other accrued expenses

     118,793       86,545        69,191       53,302  

Variation margin on futures contracts

     27,340       —        340       —  
 

 

 

    

 

 

     

 

 

    

 

 

  

Total liabilities

     1,647,239       10,384,588        72,255       151,042  
 

 

 

    

 

 

     

 

 

    

 

 

  

NET ASSETS

   $ 158,793,007     $ 70,761,258      $ 10,162,525     $ 14,206,013  
 

 

 

    

 

 

     

 

 

    

 

 

  

NET ASSETS CONSIST OF

         

Paid-in capital

   $ 160,515,442     $ 63,173,118      $ 10,597,883     $ 11,956,087  

Accumulated earnings (loss)

     (1,722,435 )      7,588,140        (435,358 )      2,249,926  
 

 

 

    

 

 

     

 

 

    

 

 

  

NET ASSETS

   $ 158,793,007     $ 70,761,258      $ 10,162,525     $ 14,206,013  
 

 

 

    

 

 

     

 

 

    

 

 

  

NET ASSET VALUE

         
Institutional:                         

Net assets

   $ 20,478,139     $ 53,815,866      $ 586,363     $ 619,878  
 

 

 

    

 

 

     

 

 

    

 

 

  

Shares outstanding(e)

     2,081,559       4,043,336        60,752       51,074  
 

 

 

    

 

 

     

 

 

    

 

 

  

Net asset value

   $ 9.84     $ 13.31      $ 9.65     $ 12.14  
 

 

 

    

 

 

     

 

 

    

 

 

  
Class K:                         

Net assets

   $ 138,314,868     $ 16,945,392      $ 9,576,162     $ 13,586,135  
 

 

 

    

 

 

     

 

 

    

 

 

  

Shares outstanding(e)

     14,058,589       1,272,599        991,983       1,119,061  
 

 

 

    

 

 

     

 

 

    

 

 

  

Net asset value

   $ 9.84     $ 13.32      $ 9.65     $ 12.14  
 

 

 

    

 

 

     

 

 

    

 

 

  

(a) Investments at cost — unaffiliated

   $ 149,246,313     $ 69,601,841      $ 9,631,227     $ 11,910,975  

(b) Securities loaned at value

   $ 1,188,923     $ 714,001      $ —     $ 75,881  

(c)  Investments at cost — affiliated

   $ 1,264,450     $ 1,165,044      $ 18,928     $ 172,833  

(d) Foreign currency at cost

   $ 913,988     $ —      $ 92,854     $ —  

 

(e)

Unlimited number of shares authorized, $0.001 par value.

See notes to financial statements.

 

 

FINANCIAL STATEMENTS

   33

Statements of Operations

Year Ended July 31, 2020

 

     iShares Edge MSCI
Min Vol EAFE
Index Fund		     iShares Edge MSCI
Min Vol USA
Index Fund		     iShares Edge MSCI
Multifactor Intl
Index Fund		     iShares Edge MSCI
Multifactor USA
Index Fund		  

INVESTMENT INCOME

        

Dividends — affiliated

   $ 4,261     $ 12,699     $ 195     $ 1,797  

Dividends — unaffiliated

     4,806,396       1,117,950       296,894       267,243  

Interest — unaffiliated

     2,162       —       —       —  

Securities lending income — affiliated — net

     7,069       2,339       154       1,100  

Foreign taxes withheld

     (398,557 )      (500 )      (22,358 )      —  
 

 

 

    

 

 

    

 

 

    

 

 

  

Total investment income

     4,421,331       1,132,488       274,885       270,140  
 

 

 

    

 

 

    

 

 

    

 

 

  

EXPENSES

        

Investment advisory

     124,938       20,295       30,810       27,067  

Custodian

     84,703       39,694       18,515       4,272  

Registration

     60,587       61,019       58,629       58,709  

Professional

     56,513       74,722       66,653       55,619  

Printing

     14,843       12,337       11,499       11,760  

Pricing

     12,529       —       8,018       —  

Directors and Officer

     11,655       10,681       10,246       10,240  

Accounting services

     9,462       9,462       9,462       9,462  

Transfer agent — class specific

     8,253       18,690       437       605  

Recoupment of past waived and/or reimbursed fees — class specific

     76       —       —       —  

Miscellaneous

     14,379       12,561       12,112       12,181  
 

 

 

    

 

 

    

 

 

    

 

 

  

Total expenses

     397,938       259,461       226,381       189,915  

Less:

        

Fees waived and/or reimbursed by the Manager

     (155,293 )      (174,755 )      (195,077 )      (162,185 ) 

Transfer agent fees waived and/or reimbursed — Class specific

     (2,027 )      (2,315 )      (184 )      (235 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed

     240,618       82,391       31,120       27,495  
 

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income

     4,180,713       1,050,097       243,765       242,645  
 

 

 

    

 

 

    

 

 

    

 

 

  

REALIZED AND UNREALIZED GAIN (LOSS)

        

Net realized gain (loss) from:

        

Investments — unaffiliated

     (7,327,046 )      (2,640,969 )      (505,143 )      44,435  

Investments — affiliated

     (1,208 )      29,056       11       5,569  

Futures contracts

     641,873       53,852       (2,196 )      —  

Foreign currency transactions

     134,979       4       (3,051 )      —  
 

 

 

    

 

 

    

 

 

    

 

 

  
    (6,551,402 )      (2,558,057 )      (510,379 )      50,004  
 

 

 

    

 

 

    

 

 

    

 

 

  

Net change in unrealized appreciation (depreciation) on:

        

Investments — unaffiliated

     (3,071,494 )      6,132,876       (91,553 )      292,417  

Investments — affiliated

     (399 )      10,183       (1 )      1,641  

Futures contracts

     (40,542 )      (52 )      (3,606 )      —  

Foreign currency translations

     66,884       —       7,597       —  
 

 

 

    

 

 

    

 

 

    

 

 

  
    (3,045,551 )      6,143,007       (87,563 )      294,058  
 

 

 

    

 

 

    

 

 

    

 

 

  

Net realized and unrealized gain (loss)

     (9,596,953 )      3,584,950       (597,942 )      344,062  
 

 

 

    

 

 

    

 

 

    

 

 

  

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS

   $ (5,416,240 )    $ 4,635,047     $ (354,177 )    $ 586,707  
 

 

 

    

 

 

    

 

 

    

 

 

  

See notes to financial statements.

 

 

34  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets

 

     iShares Edge MSCI Min Vol EAFE Index Fund             iShares Edge MSCI Min Vol USA Index Fund  
     Year Ended July 31,             Year Ended July 31,  
      2020     2019              2020     2019  

INCREASE (DECREASE) IN NET ASSETS

             

OPERATIONS

             

Net investment income

    $ 4,180,713     $ 4,305,274         $ 1,050,097     $ 401,029  

Net realized loss

      (6,551,402 )      (528,531 )          (2,558,057 )      (9,374 ) 

Net change in unrealized appreciation (depreciation)

      (3,045,551 )      (2,535,215 )          6,143,007       2,573,777  
  

 

 

    

 

 

        

 

 

    

 

 

  

Net increase (decrease) in net assets resulting from operations

      (5,416,240 )      1,241,528           4,635,047       2,965,432  
  

 

 

    

 

 

        

 

 

    

 

 

  

DISTRIBUTIONS TO SHAREHOLDERS(a)

             

Institutional

      (464,968 )      (111,970 )          (707,948 )      (250,002 ) 

Class K

      (5,941,681 )      (6,535,259 )          (366,471 )      (471,394 ) 
  

 

 

    

 

 

        

 

 

    

 

 

  

Decrease in net assets resulting from distributions to shareholders

      (6,406,649 )      (6,647,229 )          (1,074,419 )      (721,396 ) 
  

 

 

    

 

 

        

 

 

    

 

 

  

CAPITAL SHARE TRANSACTIONS

             

Net increase in net assets derived from capital share transactions

      17,783,468       7,651,328           44,103,834       8,516,646  
  

 

 

    

 

 

        

 

 

    

 

 

  

NET ASSETS

             

Total increase in net assets

      5,960,579       2,245,627           47,664,462       10,760,682  

Beginning of year

      152,832,428       150,586,801           23,096,796       12,336,114  
  

 

 

    

 

 

        

 

 

    

 

 

  

End of year

    $ 158,793,007     $ 152,832,428         $ 70,761,258     $ 23,096,796  
  

 

 

    

 

 

        

 

 

    

 

 

  

 

(a) 

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

See notes to financial statements.

 

 

FINANCIAL STATEMENTS

   35

Statements of Changes in Net Assets  (continued)

 

       iShares Edge MSCI Multifactor Intl Index Fund               iShares Edge MSCI Multifactor USA Index Fund  
       Year Ended July 31,               Year Ended July 31,  
        2020     2019                2020     2019  

INCREASE (DECREASE) IN NET ASSETS

                 

OPERATIONS

                 

Net investment income

      $ 243,765     $ 341,308           $ 242,645     $ 242,335  

Net realized gain (loss)

        (510,379 )      (226,169 )            50,004       287,777  

Net change in unrealized appreciation (depreciation)

        (87,563 )      (1,085,505 )            294,058       (515,386 ) 
    

 

 

    

 

 

          

 

 

    

 

 

  

Net increase (decrease) in net assets resulting from operations

        (354,177 )      (970,366 )            586,707       14,726  
    

 

 

    

 

 

          

 

 

    

 

 

  

DISTRIBUTIONS TO SHAREHOLDERS(a)

                 

Institutional

        (13,441 )      (22,084 )            (21,147 )      (50,604 ) 

Class K

        (267,790 )      (973,939 )            (378,014 )      (682,614 ) 
    

 

 

    

 

 

          

 

 

    

 

 

  

Decrease in net assets resulting from distributions to Common shareholders

        (281,231 )      (996,023 )            (399,161 )      (733,218 ) 
    

 

 

    

 

 

          

 

 

    

 

 

  

CAPITAL SHARE TRANSACTIONS

                 

Net increase (decrease) in net assets derived from capital share transactions

        155,627       (1,268 )            449,968       699,921  
    

 

 

    

 

 

          

 

 

    

 

 

  

NET ASSETS

                 

Total increase (decrease) in net assets

        (479,781 )      (1,967,657 )            637,514       (18,571 ) 

Beginning of year

        10,642,306       12,609,963             13,568,499       13,587,070  
    

 

 

    

 

 

          

 

 

    

 

 

  

End of year

      $ 10,162,525     $ 10,642,306           $ 14,206,013     $ 13,568,499  
    

 

 

    

 

 

          

 

 

    

 

 

  

 

(a) 

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

See notes to financial statements.

 

 

36  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights

(For a share outstanding throughout each period)

 

    iShares Edge MSCI Min Vol EAFE Index Fund  
    Institutional  
    Year Ended July 31,          

Period from
07/13/16 (a)

to 07/31/16

  
    2020     2019      2018      2017        
             

Net asset value, beginning of period

   $ 10.52     $ 10.91      $ 10.60      $ 10.12       $ 10.00  
 

 

 

    

 

 

     

 

 

     

 

 

      

 

 

  

Net investment income(b)

     0.28       0.31        0.33        0.28         0.00 (c) 

Net realized and unrealized gain (loss)

     (0.54 )      (0.23 )       0.33        0.50         0.12  
 

 

 

    

 

 

     

 

 

     

 

 

      

 

 

  

Net increase (decrease) from investment operations

     (0.26 )      0.08        0.66        0.78         0.12  
 

 

 

    

 

 

     

 

 

     

 

 

      

 

 

  

Distributions(d)

 

From net investment income

     (0.42 )      (0.32 )       (0.32 )       (0.30 )        —  

From net realized gain

     —       (0.15 )       (0.03 )       (0.00 )(e)        —  
 

 

 

    

 

 

     

 

 

     

 

 

      

 

 

  

Total distributions

     (0.42 )      (0.47 )       (0.35 )       (0.30 )        —  
 

 

 

    

 

 

     

 

 

     

 

 

      

 

 

  

Net asset value, end of period

   $ 9.84     $ 10.52      $ 10.91      $ 10.60       $ 10.12  
 

 

 

    

 

 

     

 

 

     

 

 

      

 

 

  

Total Return(f)

 

Based on net asset value

     (2.54 )%      0.92 %       6.30 %       7.90 %        1.20 %(g) 
 

 

 

    

 

 

     

 

 

     

 

 

      

 

 

  

Ratios to Average Net Assets

 

Total expenses

     0.32 %(h)      0.32 %       0.35 %       1.35 %(i)(j)        3.97 %(k)(l) 
 

 

 

    

 

 

     

 

 

     

 

 

      

 

 

  

Total expenses after fees waived and/or reimbursed

     0.20 %      0.23 %       0.23 %       0.22 %(i)        0.23 %(k) 
 

 

 

    

 

 

     

 

 

     

 

 

      

 

 

  

Net investment income

     2.79 %      2.95 %       3.02 %       2.82 %(i)        0.70 %(k) 
 

 

 

    

 

 

     

 

 

     

 

 

      

 

 

  

Supplemental Data

 

Net assets, end of period (000)

   $ 20,478     $ 5,796      $ 710      $ 272       $ 101  
 

 

 

    

 

 

     

 

 

     

 

 

      

 

 

  

Portfolio turnover rate

     29 %      23 %       25 %       48 %        — % 
 

 

 

    

 

 

     

 

 

     

 

 

      

 

 

  

 

(a) 

Commencement of operations.

(b) 

Based on average shares outstanding.

(c) 

Amount is less than $0.005 per share.

(d) 

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

(e) 

Amount is greater than $(0.005) per share.

(f) 

Where applicable, assumes the reinvestment of distributions.

(g) 

Aggregate total return.

(h) 

Includes recoupment of past waived and/or reimbursed fees with no financial impact to the expense ratios.

(i) 

Does not include expenses incurred indirectly as a result of investments in underlying funds of approximately 0.01%.

(j) 

Offering costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 1.35%.

(k) 

Annualized.

(l) 

Audit, offering and organization costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 13.44%.

See notes to financial statements.

 

 

FINANCIAL HIGHLIGHTS

   37

Financial Highlights  (continued)

(For a share outstanding throughout each period)

 

    iShares Edge MSCI Min Vol EAFE Index Fund (continued)  
    Class K  
    Year Ended July 31,          

Period from
07/13/16 (a)

to 7/31/16

  
    2020      2019      2018      2017        
             

Net asset value, beginning of period

   $ 10.52      $ 10.92      $ 10.59      $ 10.12       $ 10.00  
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Net investment income(b)

     0.27        0.31        0.32        0.38         0.00 (c) 

Net realized and unrealized gain (loss)

     (0.52 )       (0.23 )       0.37        0.39         0.12  
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Net increase (decrease) from investment operations

     (0.25 )       0.08        0.69        0.77         0.12  
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Distributions(d)

 

From net investment income

     (0.43 )       (0.33 )       (0.33 )       (0.30 )        —  

From net realized gain

     —        (0.15 )       (0.03 )       (0.00 )(e)        —  
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Total distributions

     (0.43 )       (0.48 )       (0.36 )       (0.30 )        —  
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Net asset value, end of period

   $ 9.84      $ 10.52      $ 10.92      $ 10.59       $ 10.12  
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Total Return(f)

 

Based on net asset value

     (2.49 )%       0.87 %       6.53 %       7.84 %        1.20 %(g) 
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Ratios to Average Net Assets

 

Total expenses

     0.25 %       0.25 %       0.23 %       0.46 %(h)(i)        3.90 %(j)(k) 
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Total expenses after fees waived and/or reimbursed

     0.15 %       0.18 %       0.18 %       0.18 %(h)        0.18 %(j) 
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Net investment income

     2.67 %       2.92 %       2.95 %       3.76 %(h)        0.75 %(j) 
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Supplemental Data

 

Net assets, end of period (000)

   $ 138,315      $ 147,036      $ 149,876      $ 123,571       $ 10,020  
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Portfolio turnover rate

     29 %       23 %       25 %       48 %        — % 
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

 

(a) 

Commencement of operations.

(b) 

Based on average shares outstanding.

(c) 

Amount is less than $0.005 per share.

(d) 

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

(e) 

Amount is greater than $(0.005) per share.

(f) 

Where applicable, assumes the reinvestment of distributions.

(g) 

Aggregate total return.

(h) 

Does not include expenses incurred indirectly as a result of investments in underlying funds of approximately 0.01%.

(i) 

Offering costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 0.46%.

(j) 

Annualized.

(k) 

Audit, offering and organization costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 13.37%.

See notes to financial statements.

 

 

38  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights  (continued)

(For a share outstanding throughout each period)

 

    iShares Edge MSCI Min Vol USA Index Fund  
    Institutional  
    Year Ended July 31,          

Period from
07/13/16 (a)

to 7/31/16

  
    2020      2019      2018      2017        
             

Net asset value, beginning of period

   $ 13.12      $ 11.71      $ 10.65      $ 10.00       $ 10.00  
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Net investment income(b)

     0.27        0.26        0.21        0.21         0.00 (c) 

Net realized and unrealized gain (loss)

     0.20        1.61        1.07        0.64         (0.00 )(d) 
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  
    0.47        1.87        1.28        0.85         0.00  
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Distributions(e)

 

From net investment income

     (0.24 )       (0.25 )       (0.22 )       (0.20 )        —  

From net realized gain

     (0.04 )       (0.21 )       —        (0.00 )(d)        —  
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Total distributions

     (0.28 )       (0.46 )       (0.22 )       (0.20 )        —  
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Net asset value, end of period

   $ 13.31      $ 13.12      $ 11.71      $ 10.65       $ 10.00  
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Total Return(f)

 

Based on net asset value

     3.63 %       16.49 %       12.17 %       8.65 %        0.00 %(g) 
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Ratios to Average Net Assets(h)

 

Total expenses

     0.51 %       1.04 %       1.28 %       1.99 %(i)        2.81 %(j)(k) 
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Total expenses after fees waived and/or reimbursed and paid indirectly

     0.18 %       0.18 %       0.18 %       0.17 %        0.18 %(j) 
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Net investment income

     2.06 %       2.11 %       1.92 %       2.03 %        0.85 %(j) 
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Supplemental Data

 

Net assets, end of period (000)

   $ 53,816      $ 9,506      $ 679      $ 650       $ 128  
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Portfolio turnover rate

     105 %       35 %       32 %       25 %        1 % 
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

 

(a) 

Commencement of operations.

(b) 

Based on average shares outstanding.

(c) 

Amount is less than $0.005 per share.

(d) 

Amount is greater 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) 

Aggregate total return.

(h) 

Excludes expenses incurred indirectly as a result of investments in underlying funds is as follows:

 

    Year Ended July 31,           Period from
07/13/16 (a)
to 7/31/16		  
     2020      2019      2018      2017         

Investments in underlying funds

      0.01 %       —  %       —  %       —  %        0.02 % 
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

 

(i) 

Offering costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 1.99%.

(j) 

Annualized.

(k)

Audit, offering and organization costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 11.78%.

See notes to financial statements.

 

 

FINANCIAL HIGHLIGHTS

   39

Financial Highlights  (continued)

(For a share outstanding throughout each period)

 

    iShares Edge MSCI Min Vol USA Index Fund (continued)  
    Class K  
    Year Ended July 31,          

Period from
07/13/16 (a)

to 7/31/16

  
    2020      2019      2018      2017        
             

Net asset value, beginning of period

   $ 13.12      $ 11.71      $ 10.65      $ 10.00       $ 10.00  
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Net investment income(b)

     0.27        0.27        0.22        0.22         0.00 (c) 

Net realized and unrealized gain (loss)

     0.22        1.61        1.07        0.63         (0.00 )(d) 
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  
    0.49        1.88        1.29        0.85         0.00  
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Distributions(e)

 

From net investment income

     (0.25 )       (0.26 )       (0.23 )       (0.20 )        —  

From net realized gain

     (0.04 )       (0.21 )       —        (0.00 )(d)        —  
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Total distributions

     (0.29 )       (0.47 )       (0.23 )       (0.20 )        —  
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Net asset value, end of period

   $ 13.32      $ 13.12      $ 11.71      $ 10.65       $ 10.00  
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Total Return(f)

 

Based on net asset value

     3.76 %       16.53 %       12.21 %       8.70 %        0.00 %(g) 
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Ratios to Average Net Assets(h)

 

Total expenses

     0.51 %       1.01 %       1.16 %       2.09 %(i)        2.75 %(j)(k) 
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Total expenses after fees waived and/or reimbursed and paid indirectly

     0.13 %       0.13 %       0.13 %       0.13 %        0.13 %(j) 
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Net investment income

     2.08 %       2.20 %       1.96 %       2.17 %        0.87 %(j) 
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Supplemental Data

 

Net assets, end of period (000)

   $ 16,945      $ 13,590      $ 11,657      $ 10,550       $ 9,898  
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Portfolio turnover rate

     105 %       35 %       32 %       25 %        1 % 
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

 

(a) 

Commencement of operations.

(b) 

Based on average shares outstanding.

(c) 

Amount is less than $0.005 per share.

(d) 

Amount is greater 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) 

Aggregate total return.

(h) 

Excludes expenses incurred indirectly as a result of investments in underlying funds is as follows:

 

    Year Ended July 31,            Period from
07/13/16 (a)
to 7/31/16		  
     2020      2019      2018      2017  

Investments in underlying funds

      0.01 %       —  %       —  %       —  %        0.02 % 
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

 

(i) 

Offering costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 2.09%.

(j) 

Annualized.

(k) 

Audit, offering and organization costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 11.99%.

See notes to financial statements.

 

 

40  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights  (continued)

(For a share outstanding throughout each period)

 

    iShares Edge MSCI Multifactor Intl Index Fund  
    Institutional  
    Year Ended July 31,          

Period from
07/13/16 (a)

to 7/31/16

  
    2020      2019      2018      2017        
             

Net asset value, beginning of period

   $ 10.26      $ 12.16      $ 11.94      $ 10.25       $ 10.00  
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Net investment income(b)

     0.23        0.31        0.36        0.30         0.01  

Net realized and unrealized gain (loss)

     (0.57 )       (1.24 )       0.58        1.66         0.24  
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Net increase (decrease) from investment operations

     (0.34 )       (0.93 )       0.94        1.96         0.25  
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Distributions(c)

 

From net investment income

     (0.27 )       (0.30 )       (0.57 )       (0.26 )        —  

From net realized gain

     —        (0.67 )       (0.15 )       (0.01 )        —  
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Total distributions

     (0.27 )       (0.97 )       (0.72 )       (0.27 )        —  
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Net asset value, end of period

   $ 9.65      $ 10.26      $ 12.16      $ 11.94       $ 10.25  
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Total Return(d)

 

Based on net asset value

     (3.30 )%       (7.23 )%       7.97 %       19.32 %        2.50 %(e) 
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Ratios to Average Net Assets

 

Total expenses

     2.27 %       2.18 %       1.58 %       2.34 %(f)        4.20 %(g)(h) 
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Total expenses after fees waived and/or reimbursed

     0.35 %       0.35 %       0.35 %       0.39 %        0.45 %(g) 
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Net investment income

     2.30 %       2.80 %       2.89 %       2.72 %        1.39 %(g) 
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Supplemental Data

 

Net assets, end of period (000)

   $ 586      $ 453      $ 533      $ 145       $ 103  
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Portfolio turnover rate

     42 %       41 %       50 %       44 %        — % 
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

 

(a) 

Commencement of operations.

(b) 

Based on average shares outstanding.

(c) 

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

(d) 

Where applicable, assumes the reinvestment of distributions.

(e) 

Aggregate total return.

(f) 

Offering costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 2.34%.

(g) 

Annualized.

(h) 

Audit, offering and organization costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 13.62%.

See notes to financial statements.

 

 

FINANCIAL HIGHLIGHTS

   41

Financial Highlights  (continued)

(For a share outstanding throughout each period)

 

    iShares Edge MSCI Multifactor Intl Index Fund (continued)  
    Class K  
    Year Ended July 31,          

Period from
07/13/16 (a)

to 7/31/16

  
    2020      2019      2018      2017        
             

Net asset value, beginning of period

   $ 10.26      $ 12.16      $ 11.94      $ 10.25       $ 10.00  
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Net investment income(b)

     0.23        0.33        0.32        0.27         0.01  

Net realized and unrealized gain (loss)

     (0.57 )       (1.25 )       0.62        1.69         0.24  
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Net increase (decrease) from investment operations

     (0.34 )       (0.92 )       0.94        1.96         0.25  
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Distributions(c)

 

From net investment income

     (0.27 )       (0.31 )       (0.57 )       (0.26 )        —  

From net realized gain

     —        (0.67 )       (0.15 )       (0.01 )        —  
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Total distributions

     (0.27 )       (0.98 )       (0.72 )       (0.27 )        —  
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Net asset value, end of period

   $ 9.65      $ 10.26      $ 12.16      $ 11.94       $ 10.25  
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Total Return(d)

 

Based on net asset value

     (3.26 )%       (7.18 )%       8.01 %       19.37 %        2.50 %(e) 
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Ratios to Average Net Assets

 

Total expenses

     2.20 %       2.14 %       1.50 %       2.39 %(f)        4.13 %(g)(h) 
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Total expenses after fees waived and/or reimbursed

     0.30 %       0.30 %       0.30 %       0.36 %        0.40 %(g) 
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Net investment income

     2.38 %       3.10 %       2.58 %       2.52 %        1.44 %(g) 
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Supplemental Data

 

Net assets, end of period (000)

   $ 9,576      $ 10,190      $ 12,077      $ 11,834       $ 10,152  
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Portfolio turnover rate

     42 %       41 %       50 %       44 %        — % 
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

 

(a) 

Commencement of operations.

(b) 

Based on average shares outstanding.

(c) 

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

(d) 

Where applicable, assumes the reinvestment of distributions.

(e) 

Aggregate total return.

(f) 

Offering costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 2.39%.

(g) 

Annualized.

(h) 

Audit, offering and organization costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 13.55%.

See notes to financial statements.

 

 

42  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights  (continued)

(For a share outstanding throughout each period)

 

    iShares Edge MSCI Multifactor USA Index Fund  
    Institutional  
    Year Ended July 31,          

Period from
07/13/16 (a)

to 07/31/16

  
    2020      2019      2018      2017        
             

Net asset value, beginning of period

   $ 12.05      $ 12.75      $ 11.76      $ 10.12       $ 10.00  
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Net investment income(b)

     0.21        0.21        0.18        0.21         0.00 (c) 

Net realized and unrealized gain (loss)

     0.23        (0.23 )       1.51        1.63         0.12  
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Net increase (decrease) from investment operations

     0.44        (0.02 )       1.69        1.84         0.12  
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Distributions(d)

 

From net investment income

     (0.20 )       (0.35 )       (0.23 )       (0.20 )        —  

From net realized gain

     (0.15 )       (0.33 )       (0.47 )       (0.00 )(e)        —  
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Total distributions

     (0.35 )       (0.68 )       (0.70 )       (0.20 )        —  
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Net asset value, end of period

   $ 12.14      $ 12.05      $ 12.75      $ 11.76       $ 10.12  
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Total Return(f)

 

Based on net asset value

     3.68 %       0.36 %       14.67 %       18.35 %        1.20 %(g) 
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Ratios to Average Net Assets(h)

 

Total expenses

     1.47 %       1.54 %       1.42 %       2.21 %(i)        2.54 %(j)(k) 
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Total expenses after fees waived and/or reimbursed

     0.25 %       0.25 %       0.25 %       0.30 %        0.35 %(k) 
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Net investment income

     1.79 %       1.80 %       1.48 %       1.89 %        0.29 %(k) 
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Supplemental Data

 

Net assets, end of period (000)

   $ 620      $ 1,065      $ 906      $ 194       $ 101  
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Portfolio turnover rate

     58 %       52 %       52 %       43 %        — %(l) 
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

 

(a) 

Commencement of operations.

(b) 

Based on average shares outstanding.

(c) 

Amount is less than $0.005 per share.

(d) 

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

(e) 

Amount is greater than $(0.005) per share.

(f) 

Where applicable, assumes the reinvestment of distributions.

(g) 

Aggregate total return.

(h) 

Excludes expenses incurred indirectly as a result of investments in underlying funds is as follows:

 

    Year Ended July 31,           Period from
07/13/16 (a)
to 07/31/16		         
     2020            2019            2018            2017         

Investments in underlying funds

          0.01 %        0.01 %        — %        — %        0.02 %   
 

 

 

      

 

 

      

 

 

      

 

 

      

 

 

    

 

(i) 

Offering costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 2.21%.

(j) 

Audit, offering and organization costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 11.73%.

(k) 

Annualized.

(l) 

Amount is less than 0.50%.

See notes to financial statements.

 

 

FINANCIAL HIGHLIGHTS

   43

Financial Highlights  (continued)

(For a share outstanding throughout each period)

 

    iShares Edge MSCI Multifactor USA Index Fund (continued)  
    Class K  
    Year Ended July 31,          

Period from
07/13/16 (a)

to 07/31/16

  
    2020      2019      2018      2017        
             

Net asset value, beginning of period

   $ 12.05      $ 12.75      $ 11.76      $ 10.12       $ 10.00  
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Net investment income(b)

     0.21        0.22        0.22        0.21         0.00 (c) 

Net realized and unrealized gain (loss)

     0.24        (0.24 )       1.47        1.63         0.12  
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Net increase (decrease) from investment operations

     0.45        (0.02 )       1.69        1.84         0.12  
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Distributions(d)

 

From net investment income

     (0.21 )       (0.35 )       (0.23 )       (0.20 )        —  

From net realized gain

     (0.15 )       (0.33 )       (0.47 )       (0.00 )(e)        —  
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Total distributions

     (0.36 )       (0.68 )       (0.70 )       (0.20 )        —  
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Net asset value, end of period

   $ 12.14      $ 12.05      $ 12.75      $ 11.76       $ 10.12  
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Total Return(f)

 

Based on net asset value

     3.73 %       0.41 %       14.71 %       18.40 %        1.20 %(g) 
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Ratios to Average Net Assets(h)

 

Total expenses

     1.40 %       1.47 %       1.35 %       2.17 %(i)        2.47 %(j)(k) 
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Total expenses after fees waived and/or reimbursed and paid indirectly

     0.20 %       0.20 %       0.20 %       0.26 %        0.30 %(k) 
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Net investment income

     1.79 %       1.87 %       1.75 %       1.98 %        0.34 %(k) 
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Supplemental Data

 

Net assets, end of period (000)

   $ 13,586      $ 12,503      $ 12,681      $ 11,639       $ 10,015  
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

Portfolio turnover rate

     58 %       52 %       52 %       43 %        — %(l) 
 

 

 

     

 

 

     

 

 

     

 

 

      

 

 

  

 

(a) 

Commencement of operations.

(b) 

Based on average shares outstanding.

(c) 

Amount is less than $0.005 per share.

(d) 

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

(e) 

Amount is greater than $(0.005) per share.

(f) 

Where applicable, assumes the reinvestment of distributions.

(g) 

Aggregate total return.

(h) 

Excludes expenses incurred indirectly as a result of investments in underlying funds is as follows:

 

    Year Ended July 31,           Period from
07/13/16 (a)
to 07/31/16		         
     2020            2019            2018            2017         

Investments in underlying funds

            0.01 %        0.01 %        — %        — %        0.02 %   
 

 

 

      

 

 

      

 

 

      

 

 

      

 

 

    

 

(i) 

Offering costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 2.17%.

(j) 

Audit, offering and organization costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 11.67%.

(k) 

Annualized.

(l) 

Amount is less than 0.50%.

See notes to financial statements.

 

 

44  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements

 

1.

ORGANIZATION

BlackRock FundsSM (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 Massachusetts business trust. The following, each of which is a series of the Trust, are referred to herein collectively as the “Funds” or individually as a “Fund”:

 

Fund Name   Herein Referred To As    Diversification
Classification

iShares Edge MSCI Min Vol EAFE Index Fund

   Min Vol EAFE    Diversified

iShares Edge MSCI Min Vol USA Index Fund

   Min Vol USA    Diversified

iShares Edge MSCI Multifactor Intl Index Fund

   MF International    Diversified

iShares Edge MSCI Multifactor USA Index Fund

   MF USA    Diversified

Each Fund offers multiple classes of shares. All classes of shares have identical voting, dividend, liquidation and other rights and are subject to the same terms and conditions. Institutional and Class K Shares are sold without a sales charge and only to certain eligible investors.

 

Share Class   Initial Sales Charge    CDSC      Conversion Privilege

Institutional and Class K Shares

   No      No      None

The Funds, together with certain other registered investment companies advised by BlackRock Advisors, LLC (the “Manager”) or its affiliates, are included in a complex of equity, multi-asset, index and money market funds referred to as the BlackRock Multi-Asset Complex.

 

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 on the identified cost basis. Dividend income and non-cash dividend income, if any, are recorded on the ex-dividend date. Dividends from foreign securities where the ex-dividend date may have passed are subsequently recorded when the Funds are informed of the ex-dividend date. Under the applicable foreign tax laws, a withholding tax at various rates may be imposed on capital gains, dividends and interest. Upon notification from issuers, 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. Income, expenses and realized and unrealized gains and losses are allocated daily to each class based on its relative net assets.

Foreign Currency Translation: Each Fund’s books and records are maintained in U.S. dollars. Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates determined as of the close of trading on the New York Stock Exchange (“NYSE”). Purchases and sales of investments are recorded at the rates of exchange prevailing on the respective dates of such transactions. Generally, when the U.S. dollar rises in value against a foreign currency, the investments denominated in that currency will lose value; the opposite effect occurs if the U.S. dollar falls in relative value.

Each Fund does not isolate the portion of the results of operations arising as a result of changes in the exchange rates from the changes in the market prices of investments held or sold for financial reporting purposes. Accordingly, the effects of changes in exchange rates on investments are not segregated in the Statements of Operations from the effects of changes in market prices of those investments, but are included as a component of net realized and unrealized gain (loss) from investments. Each Fund reports realized currency gains (losses) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for U.S. federal income tax purposes.

Segregation and Collateralization: In cases where a Fund enters into certain investments (e.g., futures contracts) that would be treated as “senior securities” for 1940 Act purposes, a Fund may segregate or designate on its books and records cash or liquid assets having a market value at least equal to the amount of its future obligations under such investments. Doing so allows the investment to be excluded from treatment as a “senior security.” Furthermore, 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 or obligations.

Distributions: Distributions paid by the Funds are recorded on the ex-dividend dates. The character and timing of distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

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

Other: Expenses directly related to a Fund or its classes are charged to that Fund or the applicable class. Expenses directly related to the Funds and other shared expenses prorated to the Funds are allocated daily to each class based on their relative net assets or other appropriate methods. Other operating expenses shared by several funds, including other funds managed by the Manager, are prorated among those funds on the basis of relative net assets or other appropriate methods.

 

 

NOTES TO FINANCIAL STATEMENTS

   45

Notes to Financial Statements  (continued)

 

3.

INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

Investment Valuation Policies: The Funds’ investments are valued at fair value (also referred to as “market value” within the financial statements) as of the close of trading on the NYSE (generally 4:00 p.m., Eastern time). U.S. GAAP defines fair value as the price the Funds would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Funds determine the fair values of their financial instruments using various independent dealers or pricing services under policies approved by the Board of Trustees of the Trust (the “Board”). If a security’s market price is not readily available or does not otherwise accurately represent the fair value of the security, the security will be valued in accordance with a policy approved by the Board as reflecting fair value. The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.

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

 

  •  

Equity investments traded on a recognized securities exchange are valued at the official closing price each day, if available. For equity investments traded on more than one exchange, the official closing price on the exchange where the stock is primarily traded is used. Equity investments traded on a recognized exchange for which there were no sales on that day may be valued at the last available bid (long positions) or ask (short positions) price.

Generally, trading in foreign instruments is substantially completed each day at various times prior to the close of trading on the NYSE. Occasionally, events affecting the values of such instruments may occur between the foreign market close and the close of trading on the NYSE that may not be reflected in the computation of the Funds’ net assets. Each business day, the Funds use a pricing service to assist with the valuation of certain foreign exchange-traded equity securities and foreign exchange-traded and over-the-counter (“OTC”) options (the “Systematic Fair Value Price”). Using current market factors, the Systematic Fair Value Price is designed to value such foreign securities and foreign options at fair value as of the close of trading on the NYSE, which follows the close of the local markets.

 

  •  

Investments in open-end U.S. mutual funds are valued at net asset value (“NAV”) each business day.

 

  •  

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

If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of such investments, or in the event that the application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, or its delegate, in accordance with a policy approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee will 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 Global Valuation Committee, or its delegate, seeks to determine the price that each Fund might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the Global Valuation Committee, or its delegate, deems relevant and consistent with the principles of fair value measurement. The pricing of all Fair Valued Investments is subsequently reported to the Board or a committee thereof on a quarterly basis.

Fair Value Hierarchy: Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial statement 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)

 

  •  

Level 3 — Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Global Valuation Committee’s assumptions used in determining the fair value of investments and derivative 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 Global Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held companies or funds. There may not be a secondary market, and/or there are a limited number of investors. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investments and derivative financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

 

4.

SECURITIES AND OTHER INVESTMENTS

Preferred Stocks: Preferred stock has a preference over common stock in liquidation (and generally in receiving dividends as well), but is subordinated to the liabilities of the issuer in all respects. As a general rule, the market value of preferred stock with a fixed dividend rate and no conversion element varies inversely with interest rates and perceived credit risk, while the market price of convertible preferred stock generally also reflects some element of conversion value. Because preferred stock is junior to debt securities and other obligations of the issuer, deterioration in the credit quality of the issuer will cause greater changes in the value of a preferred stock than in a

 

 

46  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements  (continued)

 

more senior debt security with similar stated yield characteristics. Unlike interest payments on debt securities, preferred stock dividends are payable only if declared by the issuer’s board of directors. Preferred stock also may be subject to optional or mandatory redemption provisions.

Securities Lending: Certain Funds may lend their securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Funds collateral consisting of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. Government. The initial collateral received by each Fund is required to have a value of at least 102% of the current value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current market 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 returned by the Fund, on the next business day. During the term of the loan, the Funds are entitled to all distributions made on or in respect of the loaned securities, but do 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.

The market value of any securities on loan, all of which were classified as common stocks in the Funds’ Schedules of Investments, and the value of any related collateral are shown separately in the Statements of Assets and Liabilities as a component of investments at value-unaffiliated, and collateral on securities loaned at value, respectively. As of period end, any securities on loan were collateralized by cash and/or U.S. Government obligations. Cash collateral invested by the securities lending agent, BlackRock Institutional Trust Company, N.A. (“BTC”), if any, is disclosed in the Schedules of Investments.

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 a 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.

As of period end, the following table is a summary of the Funds’ securities lending agreements by counterparty which are subject to offset under an MSLA:

Min Vol EAFE

 

Counterparty  

Securities

Loaned at Value

     

Cash Collateral

Received (a)

    

Net

Amount

  

Morgan Stanley & Co. LLC

   $ 1,188,923      $ (1,188,923 )    $ —  
 

 

 

     

 

 

    

 

 

  

Min Vol USA

 

Counterparty  

Securities

Loaned at Value

     

Cash Collateral

Received (a)

    

Net

Amount

  

J.P. Morgan Securities LLC

   $ 707,355      $ (707,355 )    $ —  

Morgan Stanley & Co. LLC

     306        (306 )      —  

Scotia Capital (USA), Inc

     6,340        (6,340 )      —  
 

 

 

     

 

 

    

 

 

  
  $ 714,001      $ (714,001 )    $ —  
 

 

 

     

 

 

    

 

 

  

MF USA

 

Counterparty  

Securities

Loaned at Value

     

Cash Collateral

Received (a)

    

Net

Amount

  

Goldman Sachs & Co

   $ 75,881      $ (75,881 )    $ —  
 

 

 

     

 

 

    

 

 

  

 

  (a) 

Collateral received in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by each Fund is disclosed in the Fund’s 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, the Funds benefit 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 the Funds.

 

5.

DERIVATIVE FINANCIAL INSTRUMENTS

The Funds engage in various portfolio investment strategies using derivative contracts both to increase the returns of the Funds and/or to manage their exposure to certain risks such as credit risk, equity risk, interest rate risk, foreign currency exchange rate risk, commodity price risk or other risks (e.g., inflation risk). Derivative financial instruments categorized by risk exposure are included in the Schedules of Investments. These contracts may be transacted on an exchange or OTC.

 

 

NOTES TO FINANCIAL STATEMENTS

   47

Notes to Financial Statements  (continued)

 

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 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 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 Statements of Assets and Liabilities.

Securities deposited as initial margin are designated in the Schedules 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, foreign currency exchange rates or underlying assets.

 

6.

INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Advisory: The Trust, on behalf of each Fund, entered into an Investment Advisory Agreement with the Manager, the Funds’ investment adviser and an indirect, wholly-owned subsidiary of BlackRock, to provide investment advisory and administrative services. The Manager is responsible for the management of each Fund’s portfolio and provides the personnel, facilities, equipment and certain other services necessary to the operations of each Fund.

For such services, each Fund pays the Manager a monthly fee at an annual rate equal to the following percentages of the average daily value of each Fund’s net assets.

 

Average Daily Net Assets   Investment
Advisory Fees		  

Min Vol EAFE

     0.08 % 

Min Vol USA

     0.04  

MF International

     0.30  

MF USA

     0.20  

With respect to each Fund, the Manager entered into separate sub-advisory agreements with BlackRock Fund Advisors (“BFA”), an affiliate of the Manager. The Manager pays BFA for services it provides for that portion of each Fund for which BFA acts as sub-adviser, a monthly fee that is equal to a percentage of the investment advisory fees paid by each Fund to the Manager.

Distribution Agreement: The Trust, on behalf of the Funds, entered into a Distribution Agreement with BlackRock Investments, LLC (“BRIL”), an affiliate of the Manager.

BRIL and broker-dealers, pursuant to sub-agreements with BRIL, provide shareholder servicing and distribution services to the Funds.

Transfer Agent: Pursuant to written agreements, certain financial intermediaries, some of which may be affiliates, provide the Funds with sub-accounting, recordkeeping, sub-transfer agency and other administrative services with respect to servicing of underlying investor accounts. For these services, these entities receive an asset-based fee or an annual fee per shareholder account, which will vary depending on share class and/or net assets. For the year ended July 31, 2020, the Funds paid the following amounts to affiliates of BlackRock in return for these services, which are included in transfer agent — class specific in the Statements of Operations:

 

     Institutional      Class K      Total  

Min Vol EAFE

   $ 7,771      $ 482      $ 8,253  

Min Vol USA

     18,383        307        18,690  

MF International

     391        46        437  

MF USA

     547        58        605  

The Manager maintains a call center that is responsible for providing certain shareholder services to the Funds. Shareholder services include responding to inquiries and processing purchases and sales based upon instructions from shareholders. For the year ended July 31, 2020, each Fund reimbursed the Manager the following amounts for costs incurred in running the call center, which are included in transfer agent — class specific in the Statements of Operations:

 

     Institutional      Class K      Total  

Min Vol EAFE

   $ 21      $ 241      $ 262  

Min Vol USA

     170        27        197  

MF International

     23        30        53  

MF USA

     25        39        64  

Expense Limitations, Waivers, Reimbursements, and Recoupments: With respect to each Fund, the Manager contractually agreed to waive its investment advisory fees by the amount of investment advisory fees each Fund pays to the Manager indirectly through its investment in affiliated money market funds (the “affiliated money market fund waiver”) through November 30, 2020. The contractual agreement may be terminated upon 90 days’ notice by a majority of the trustees who are not “interested persons” of the Fund, as defined in the 1940 Act (“Independent Trustees”), or by a vote of a majority of the outstanding voting securities of the Fund. The amount of

 

 

48  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements  (continued)

 

waivers and/or reimbursements of fees and expenses made pursuant to the expense limitations described below will be reduced by the amount of the affiliated money market fund waiver. Prior to November 27, 2019, this waiver was voluntary. These amounts are included in fees waived and/or reimbursed by the Manager in the Statements of Operations. For the year ended July 31, 2020, the amounts waived were as follows:

 

     Amount Waived  

Min Vol EAFE

   $ 258  

Min Vol USA

     500  

MF International

     12  

MF USA

     28  

The Manager has contractually agreed to waive its investment advisory fee with respect to any portion of each Fund’s assets invested in affiliated equity and fixed-income exchange-traded funds that have a contractual management fee through November 30, 2020. The contractual agreement may be terminated upon 90 days’ notice by a majority of the Independent Trustees or by a vote of a majority of the outstanding voting securities of a Fund. These amounts are included in fees waived and/or reimbursed by the Manager in the Statements of Operations. For the year ended July 31, 2020, the amounts waived in investment advisory fees pursuant to these arrangements were as follows:

 

     Amount Waived  

Min Vol EAFE

   $ —  

Min Vol USA

     158  

MF International

     —  

MF USA

     140  

With respect to each Fund, the Manager contractually agreed to waive and/or reimburse fees or expenses in order to limit expenses, excluding interest expense, dividend expense, tax expense, acquired fund fees and expenses, and certain other fund expenses, which constitute extraordinary expenses not incurred in the ordinary course of each Fund’s business (“expense limitation”). The expense limitations as a percentage of average daily net assets are as follows:

 

     Institutional      Class K  

Min Vol EAFE

     0.20 %       0.15 % 

Min Vol USA

     0.18        0.13  

MF International

     0.35        0.30  

MF USA

     0.25        0.20  

The Manager has agreed not to reduce or discontinue these contractual expense limitations through November 30, 2020, unless approved by the Board, including a majority of the Independent Trustees, or by a vote of a majority of the outstanding voting securities of a Fund.

These amounts waived and/or reimbursed are included in fees waived and/or reimbursed by the Manager and transfer agent fees waived and/or reimbursed — class specific, respectively, in the Statements of Operations. For the year ended July 31, 2020, the amounts included in fees waived and/or reimbursed by the Manager were as follows:

 

     Fees Waived and/or
Reimbursed by
the Manager		  

Min Vol EAFE

   $ 155,035  

Min Vol USA

     174,097  

MF International

     195,065  

MF USA

     162,017  

For the year ended July 31, 2020, transfer agent fees — class specific expense waivers and/or reimbursements were as follows:

 

Transfer Agent Fees Waived and/or Reimbursed   Institutional      Class K      Total  

Min Vol EAFE

   $ 1,546      $ 481      $ 2,027  

Min Vol USA

     2,009        306        2,315  

MF International

     140        44        184  

MF USA

     178        57        235  

With respect to the contractual expense limitation, if during a Fund’s fiscal year the operating expenses of a share class, that at any time during the prior two fiscal years received a waiver and/or reimbursement from the Manager, are less than the current expense limitation for that share class, the Manager is entitled to be reimbursed by such share class up to the lesser of: (a) the amount of fees waived and/or expenses reimbursed during those prior two fiscal years under the agreement and (b) an amount not to exceed either the current expense limitation of that share class or the expense limitation of the share class in effect at the time that the share class received the applicable waiver and/or reimbursement, provided that:

 

  (1)

each Fund, of which the share class is a part, has more than $50 million in assets for the fiscal year, and

 
  (2)

the Manager or an affiliate continues to serve as a Fund’s investment adviser or administrator.

 

 

 

NOTES TO FINANCIAL STATEMENTS

   49

Notes to Financial Statements  (continued)

 

This repayment applies only to the contractual expense limitation on net expenses and does not apply to the contractual investment advisory fee waiver described above or any voluntary waivers that may be in effect from time to time. Effective July 13, 2023, the repayment arrangement between each Fund and the Manager pursuant to which such Fund may be required to repay amounts waived and/or reimbursed under the Fund’s contractual caps on net expenses will be terminated.

For the year ended July 31, 2020, the Manager recouped the following fund level and class specific waivers and/or reimbursements previously recorded by the Fund:

 

     Min Vol EAFE  

Institutional

   $ 76  

As of July 31, 2020, the fund level and class specific waivers and/or reimbursements subject to possible future recoupment under the expense limitation agreement are as follows:

 

     Expiring July 31,  
     2021      2022  

Min Vol EAFE

     

Fund Level

   $ 97,352      $ 155,035  

Institutional

     227        1,546  

Class K

     258        481  

Min Vol USA

     

Fund Level

   $ 159,424      $ 174,097  

Institutional

     420        2,009  

Class K

     49        306  

MF International

     

Fund Level

   $ 201,789      $ 195,065  

Institutional

     216        140  

Class K

     38        44  

MF USA

     

Fund Level

   $ 164,201      $ 162,017  

Institutional

     195        178  

Class K

     22        57  

The following fund level and class specific waivers and/or reimbursements previously recorded by the Funds, which were subject to recoupment by the Manager, expired on July 31, 2020:

 

Min Vol EAFE

        

Fund Level

   $ 62,717  

Institutional

     313  

Class K

     549  

Min Vol USA

  

Fund Level

   $ 120,660  

Institutional

     560  

Class K

     30  

MF International

  

Fund Level

   $ 150,919  

Institutional

     222  

Class K

     27  

MF USA

  

Fund Level

   $ 144,337  

Institutional

     90  

Class K

     33  

Securities Lending: The U.S. Securities and Exchange Commission (“SEC”) has issued an exemptive order which permits BTC, an affiliate of the Manager, 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. The Funds are 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 managed by the Manager 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 Funds bear to an annual rate of 0.04%. The 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 a remaining portion to BTC as compensation for its services as securities lending agent.

Pursuant to the current securities lending agreement, each of Min Vol USA and MF USA retains 75% of securities lending income (which excludes collateral investment fees), and this amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

 

 

50  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements  (continued)

 

In addition, commencing the business day following the date that the aggregate securities lending income earned across the BlackRock Multi-Asset Complex in a calendar year exceeds a specified threshold, each of Min Vol USA and MF USA, pursuant to the securities lending agreement, will retain for the remainder of that calendar year securities lending income in an amount equal to 80% of securities lending income (which excludes collateral investment fees), and this amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

Prior to January 1, 2020, each of Min Vol USA and MF USA retained 73.5% of securities lending income (which excluded collateral investment fees) and the amount retained could never be less than 70% of the total of securities lending income plus the collateral investment fees. In addition, commencing the business day following the date that the aggregate securities lending income earned across the BlackRock Multi-Asset Complex in a calendar year exceeded a specified threshold, the Fund would retain for the remainder of that calendar year 80% of securities lending income (which excluded collateral investment fees), and the amount retained could never be less than 70% of the total of securities lending income plus the collateral investment fees.

Pursuant to the current securities lending agreement, each of Min Vol EAFE and MF International retains 82% of securities lending income (which excludes collateral investment fees), and this 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 earned across the BlackRock Multi-Asset Complex in a calendar year exceeds a specified threshold, each of Min Vol EAFE and MF International, pursuant to the securities lending agreement, will retain for the remainder of that calendar year securities lending income in an amount equal to 85% of securities lending income (which excludes collateral investment fees), and this 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 the Statements of Operations. For the year ended July 31, 2020, each Fund paid BTC the following amounts for securities lending agent services:

 

     Min Vol EAFE      Min Vol USA      MF International      MF USA  

BTC

   $ 1,479      $ 716      $ 33      $ 328  

Interfund Lending: In accordance with an exemptive order (the “Order”) from the SEC, each Fund may participate in a joint lending and borrowing facility for temporary purposes (the “Interfund Lending Program”), subject to compliance with the terms and conditions of the Order, and to the extent permitted by each Fund’s investment policies and restrictions. Each Fund is currently permitted to borrow and lend under the Interfund Lending Program.

A lending BlackRock fund may lend in aggregate up to 15% of its net assets, but may not lend more than 5% of its net assets to any one borrowing fund through the Interfund Lending Program. A borrowing BlackRock fund may not borrow through the Interfund Lending Program or from any other source more than 33 1/3% of its total assets (or any lower threshold provided for by the fund’s investment restrictions). If a borrowing BlackRock fund’s total outstanding borrowings exceed 10% of its total assets, each of its outstanding interfund loans will be subject to collateralization of at least 102% of the outstanding principal value of the loan. All interfund loans are for temporary or emergency purposes and the interest rate to be charged will be the average of the highest current overnight repurchase agreement rate available to a lending fund and the bank loan rate, as calculated according to a formula established by the Board.

During the year ended July 31, 2020, the Funds did not participate in the Interfund Lending Program.

Trustees and Officers: Certain trustees and/or officers of the Trust are directors and/or officers of BlackRock or its affiliates. The Funds reimburse the Manager for a portion of the compensation paid to the Trust’s Chief Compliance Officer, which is included in Trustees and Officer in the Statements of Operations.

 

7.

PURCHASES AND SALES

For the year ended July 31, 2020, purchases and sales of investments, excluding short-term securities, were as follows:

 

     Min Vol EAFE      Min Vol USA      MF International      MF USA  

Purchases

   $ 60,695,596      $ 107,142,639      $ 4,630,345      $ 8,125,714  

Sales

     44,895,524        53,753,580        4,227,278        7,790,445  

 

8.

INCOME TAX INFORMATION

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.

Each Fund files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on each Fund’s U.S. federal tax returns generally remains open for each of the four years ended July 31, 2020. The statutes of limitations on each Fund’s state and local tax returns may remain open for an additional year depending upon the jurisdiction.

Management has analyzed tax laws and regulations and their application to the Funds as of July 31, 2020, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.

 

 

NOTES TO FINANCIAL STATEMENTS

   51

Notes to Financial Statements  (continued)

 

The tax character of distributions paid was as follows:

 

     Min Vol EAFE      Min Vol USA      MF International      MF USA  

Ordinary income

           

07/31/20

   $ 6,406,649      $ 989,268      $ 281,231      $ 237,441  

07/31/19

     5,656,503        405,844        453,011        493,421  

Long-term capital gains

           

07/31/20

     —        85,151        —        161,720  

07/31/19

     990,726        315,552        543,012        239,797  
 

 

 

     

 

 

     

 

 

     

 

 

  

Total

           

07/31/20

   $ 6,406,649      $ 1,074,419      $ 281,231      $ 399,161  
 

 

 

     

 

 

     

 

 

     

 

 

  

07/31/19

   $ 6,647,229      $ 721,396      $ 996,023      $ 733,218  
 

 

 

     

 

 

     

 

 

     

 

 

  

As of period end, the tax components of accumulated net earnings (loss) were as follows:

 

     Min Vol EAFE     Min Vol USA     MF International     MF USA  

Undistributed ordinary income

   $ —     $ 111,773     $ —     $ 13,627  

Undistributed long-term capital gains

     —       —       —       44,581  

Non-expiring Capital loss carryforwards(a)

     (5,842,985 )      —       (747,616 )      —  

Net unrealized gains (losses)(b)

     5,724,178       7,951,890       328,973       2,191,718  

Qualified late-year losses(c)

     (1,603,628 )      (475,523 )      (16,715 )      —  
 

 

 

    

 

 

    

 

 

    

 

 

  
  $ (1,722,435 )    $ 7,588,140     $ (435,358 )    $ 2,249,926  
 

 

 

    

 

 

    

 

 

    

 

 

  

 

  (a) 

Amounts available to offset future realized capital gains.

 
  (b) 

The difference between book-basis and tax-basis net unrealized gains (losses) was attributable primarily to the tax deferral of losses on wash sales, the realization for tax purposes of unrealized gains on investments in passive foreign investment companies, the realization for tax purposes of unrealized gains/losses on certain futures and foreign currency contracts, the characterization of corporate actions and the timing and recognition of partnership income.

 
  (c) 

The Fund has elected to defer certain qualified late-year losses and recognize such losses in the next taxable year.

 

As of July 31, 2020, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:

 

     Min Vol EAFE     Min Vol USA     MF International     MF USA  

Tax cost

   $ 152,776,382     $ 72,996,098     $ 9,729,791     $ 12,107,443  
 

 

 

    

 

 

    

 

 

    

 

 

  

Gross unrealized appreciation

   $ 20,745,823     $ 9,222,859     $ 1,290,972     $ 2,819,036  

Gross unrealized depreciation

     (15,073,444 )      (1,270,968 )      (965,936 )      (627,318 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Net unrealized appreciation (depreciation)

   $ 5,672,379     $ 7,951,891     $ 325,036     $ 2,191,718  
 

 

 

    

 

 

    

 

 

    

 

 

  

 

9.

BANK BORROWINGS

The Trust, on behalf of the Funds, along with certain other funds managed by the Manager and its affiliates (“Participating Funds”), is a party to a 364-day, $2.25 billion credit agreement with a group of lenders. Under this agreement, the Funds may borrow to fund shareholder redemptions. Excluding commitments designated for certain individual funds, the Participating Funds, including the Funds, can borrow up to an aggregate commitment amount of $1.75 billion at any time outstanding, subject to asset coverage and other limitations as specified in the agreement. The credit agreement has the following terms: a fee of 0.10% per annum on unused commitment amounts and interest at a rate equal to the higher of (a) one-month LIBOR (but, in any event, not less than 0.00%) on the date the loan is made plus 0.80% per annum or (b) the Fed Funds rate (but, in any event, not less than 0.00%) in effect from time to time plus 0.80% per annum on amounts borrowed. The agreement expires in April 2021 unless extended or renewed. These fees were allocated among such funds based upon portions of the aggregate commitment available to them and relative net assets of Participating Funds. During the year ended July 31, 2020, the Funds did not borrow under the credit agreement.

 

10.

PRINCIPAL RISKS

In the normal course of business, certain Funds invest in securities or other instruments and may enter into certain transactions, and such activities subject each 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 and 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 each Fund is subject.

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.

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

 

 

52  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements  (continued)

 

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 each 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.

An outbreak of respiratory disease caused by a novel coronavirus has developed into a global pandemic and has resulted in closing borders, quarantines, disruptions to supply chains and customer activity, as well as general concern and uncertainty. The impact of this pandemic, and other global health crises that may arise in the future, could affect the economies of many nations, individual companies and the market in general in ways that cannot necessarily be foreseen at the present time. This pandemic may result in substantial market volatility and may adversely impact the prices and liquidity of a fund’s investments. The duration of this pandemic and its effects cannot be determined with certainty.

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. The Funds manage counterparty credit risk by entering into transactions only with counterparties that the Manager believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Funds to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Funds’ exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately their value recorded in the 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: As of period end, MF USA and Min Vol USA invested a significant portion of its assets in securities in the Information Technology sector. Changes in economic conditions affecting such sector would have a greater impact on the Fund and could affect the value, income and/or liquidity of positions in such securities.

Certain Funds invest a substantial amount of their assets in issuers located in a single country or a limited number of countries. When the Funds concentrate their investments in this manner, it assumes the risk that economic, political and social conditions in those countries may have a significant impact on their investment performance. Foreign issuers may not be subject to the same uniform accounting, auditing and financial reporting standards and practices as used in the United States. Foreign securities markets may also be more volatile and less liquid than U.S. securities and may be less subject to governmental supervision not typically associated with investing in U.S. securities. Investment percentages in specific countries are presented in the Schedules of Investments.

Certain Funds invest a significant portion of their assets in securities of issuers located in Europe or with significant exposure to European issuers or countries. The European financial markets have recently experienced volatility and adverse trends due to concerns about economic downturns in, or rising government debt levels of, several European countries. These events may spread to other countries in Europe and may affect the value and liquidity of certain of the Funds’ investments.

Responses to the financial problems by European governments, central banks and others, including austerity measures and reforms, may not work, may result in social unrest and may limit future growth and economic recovery or have other unintended consequences. Further defaults or restructurings by governments and others of their debt could have additional adverse effects on economies, financial markets and asset valuations around the world. In addition, the United Kingdom has withdrawn from the European Union, and one or more other countries may withdraw from the European Union and/or abandon the Euro, the common currency of the European Union. The impact of these actions, especially if they occur in a disorderly fashion, is not clear but could be significant and far reaching.

Certain Funds invest a significant portion of their assets in securities of issuers located in Asia or with significant exposure to Asian issuers or countries. The Asian financial markets have recently experienced volatility and adverse trends due to concerns in several Asian countries regarding monetary policy, government intervention in the markets, rising government debt levels or economic downturns. These events may spread to other countries in Asia and may affect the value and liquidity of certain of the Funds’ investments.

As of period end, MF USA’s investments had the following industry classifications:

 

     Percentage of
Net Assets		  

Information Technology

     30 % 

Health Care

     18  

Industrials

     10  

Consumer Discretionary

     9  

Consumer Staples

     7  

Financials

     6  

Communication Services

     6  

Utilities

     5  

Real Estate

     5  

Others(a)

     4  

 

  (a) 

All other industries held were less than 5% of net assets.

 

 

 

NOTES TO FINANCIAL STATEMENTS

   53

Notes to Financial Statements  (continued)

 

LIBOR Transition Risk: The United Kingdom’s Financial Conduct Authority announced a phase out of the London Interbank Offered Rate (“LIBOR”) by the end of 2021, and it is expected that LIBOR will cease to be published after that time. The Funds may be exposed to financial instruments tied to LIBOR to determine payment obligations, financing terms, hedging strategies or investment value. The transition process away from LIBOR might lead to increased volatility and illiquidity in markets for, and reduce the effectiveness of new hedges placed against, instruments whose terms currently include LIBOR. The ultimate effect of the LIBOR transition process on the Funds is uncertain.

 

11.

CAPITAL SHARE TRANSACTIONS

Transactions in capital shares for each class were as follows:

 

     Year Ended
07/31/20		     Year Ended
07/31/19		  
Min Vol EAFE   Shares     Amount     Shares     Amount  

Institutional

        

Shares sold

     2,384,133     $ 24,448,827       498,766     $ 5,255,757  

Shares issued in reinvestment of distributions

     46,125       460,732       10,158       107,266  

Shares redeemed

     (899,680 )      (8,002,790 )      (23,028 )      (240,097 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

     1,530,578     $ 16,906,769       485,896     $ 5,122,926  
 

 

 

    

 

 

    

 

 

    

 

 

  

Class K

        

Shares sold

     1,334,529     $ 13,750,089       1,221,101     $ 12,759,984  

Shares issued in reinvestment of distributions

     538,771       5,517,677       592,086       6,065,586  

Shares redeemed

     (1,789,876 )      (18,391,067 )      (1,568,649 )      (16,297,168 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

     83,424     $ 876,699       244,538     $ 2,528,402  
 

 

 

    

 

 

    

 

 

    

 

 

  

Total Net Increase

     1,614,002     $ 17,783,468       730,434     $ 7,651,328  
 

 

 

    

 

 

    

 

 

    

 

 

  
Min Vol USA   Shares     Amount     Shares     Amount  

Institutional

        

Shares sold

     6,676,095     $ 84,409,325       807,589     $ 9,718,921  

Shares issued in reinvestment of distributions

     54,613       705,147       20,659       245,380  

Shares redeemed

     (3,411,862 )      (43,614,063 )      (161,745 )      (1,940,634 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

     3,318,846     $ 41,500,409       666,503     $ 8,023,667  
 

 

 

    

 

 

    

 

 

    

 

 

  

Class K

        

Shares sold

     994,555     $ 12,669,750       43,990     $ 540,167  

Shares issued in reinvestment of distributions

     6,436       83,523       749       9,198  

Shares redeemed

     (764,017 )      (10,149,848 )      (4,766 )      (56,386 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

     236,974     $ 2,603,425       39,973     $ 492,979  
 

 

 

    

 

 

    

 

 

    

 

 

  

Total Net Increase

     3,555,820     $ 44,103,834       706,476     $ 8,516,646  
 

 

 

    

 

 

    

 

 

    

 

 

  
MF International   Shares     Amount     Shares     Amount  

Institutional

        

Shares sold

     18,399     $ 184,126       37,839     $ 395,954  

Shares issued in reinvestment of distributions

     1,139       10,789       1,217       12,345  

Shares redeemed

     (2,935 )      (28,145 )      (38,738 )      (413,607 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

     16,603     $ 166,770       318     $ (5,308 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Class K

        

Shares sold

     156     $ 1,660       103     $ 1,107  

Shares issued in reinvestment of distributions

     70       681       301       3,022  

Shares redeemed

     (1,608 )      (13,484 )      (8 )      (89 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

     (1,382 )    $ (11,143 )      396     $ 4040  
 

 

 

    

 

 

    

 

 

    

 

 

  

Total Net Increase (decrease)

     15,221     $ 155,627       714     $ (1,268 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  
MF USA   Shares     Amount     Shares     Amount  

Institutional

        

Shares sold

     13,592     $ 164,941       17,706     $ 210,492  

Shares issued in reinvestment of distributions

     1,467       17,673       3,950       43,869  

Shares redeemed

     (52,430 )      (648,088 )      (4,269 )      (49,330 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

     (37,371 )    $ (465,474 )      17,387     $ 205,031  
 

 

 

    

 

 

    

 

 

    

 

 

  

 

 

54  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements  (continued)

 

     Year Ended
07/31/20		     Year Ended
07/31/19		  
     Shares     Amount     Shares     Amount  

Class K

        

Shares sold

     169,146     $ 1,964,223       64,873     $ 753,713  

Shares issued in reinvestment of distributions

     2,346       28,034       890       10,182  

Shares redeemed

     (90,130 )      (1,076,815 )      (22,785 )      (269,005 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

     81,362     $ 915,442       42,978     $ 494,890  
 

 

 

    

 

 

    

 

 

    

 

 

  

Total Net Increase

     43,991     $ 449,968       60,365     $ 699,921  
 

 

 

    

 

 

    

 

 

    

 

 

  

As of July 31, 2020, shares owned by BlackRock HoldCo 2, Inc., an affiliate of the Funds, were as follows:

 

     Institutional      Class K  

Min Vol EAFE

     10,000        990,000  

Min Vol USA

     10,000        990,000  

MF International

     10,000        990,000  

MF USA

     10,000        990,000  

 

12.

SUBSEQUENT EVENTS

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

 

 

NOTES TO FINANCIAL STATEMENTS

   55

Report of Independent Registered Public Accounting Firm

 

To the Board of Trustees of BlackRock FundsSM and Shareholders of

iShares Edge MSCI Min Vol EAFE Index Fund, iShares Edge MSCI Min Vol USA Index Fund, iShares Edge MSCI Multifactor Intl Index Fund and iShares Edge MSCI Multifactor USA Index Fund

Opinions on the Financial Statements

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of iShares Edge MSCI Min Vol EAFE Index Fund, iShares Edge MSCI Min Vol USA Index Fund, iShares Edge MSCI Multifactor Intl Index Fund and iShares Edge MSCI Multifactor USA Index Fund (four of the funds constituting BlackRock FundsSM, hereafter collectively referred to as the “Funds”) as of July 31, 2020, the related statements of operations for the year ended July 31, 2020, the statements of changes in net assets for each of the two years in the period ended July 31, 2020, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of July 31, 2020, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period ended July 31, 2020 and each of the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinions

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

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

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of July 31, 2020 by correspondence with the custodian, transfer agent and brokers. We believe that our audits provide a reasonable basis for our opinions.

/s/PricewaterhouseCoopers LLP

Philadelphia, Pennsylvania

September 22, 2020

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

 

 

56  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Important Tax Information  (unaudited)   

 

For corporate shareholders, the percentage of ordinary income distributions paid during the fiscal year ended July 31, 2020 that qualified for the dividends-received deduction were as follows:

 

Fund   Dividends-Received
Deduction		  

Min Vol USA

     83.70 % 

MF USA

     90.24  

The following maximum amounts are hereby designated as qualified dividend income for individuals for the fiscal year ended July 31, 2020:

 

Fund   Qualified Dividend
Income		  

Min Vol EAFE

   $ 3,612,314  

Min Vol USA

     938,422  

MF International

     252,989  

MF USA

     244,288  

The following maximum amounts are hereby designated as qualified business income for individuals for the fiscal year ended July 31, 2020:

 

Fund   Qualified Business
Income		  

Min Vol USA

   $ 84,173  

MF USA

     22,401  

For the fiscal year ended July 31, 2020, the Funds earned foreign source income and paid foreign taxes which they intend to pass through to their shareholders:

 

Fund   Foreign Source
Income Earned		      Foreign
Taxes Paid		  

Min Vol EAFE

   $ 4,486,903      $ 420,163  

MF International

     247,365        22,469  

The following distribution amounts are hereby designated for the fiscal year ended July 31, 2020:

 

Fund   Short-Term Capital
Gain Dividends		      20% Rate
Long-Term Capital
Gain  Dividends		  

Min Vol USA

   $ 5,100      $ 85,151  

MF USA

     —      $ 161,720  

 

 

IMPORTANT TAX INFORMATION

   57

Disclosure of Investment Advisory Agreement and Sub-Advisory Agreement

 

The Board of Trustees (the “Board,” the members of which are referred to as “Board Members”) of BlackRock FundsSM (the “Trust”) met on April 7, 2020 (the “April Meeting”) and May 11-13, 2020 (the “May Meeting”) to consider the approval of the investment advisory agreement (the “Advisory Agreement”) between the Trust, on behalf of iShares Edge MSCI Min Vol EAFE Index Fund (“Min Vol EAFE Index Fund”), iShares Edge MSCI Min Vol USA Index Fund (“Min Vol USA Index Fund”), iShares Edge MSCI Multifactor Intl Index Fund (“Multifactor Intl Index Fund”) and iShares Edge MSCI Multifactor USA Index Fund (“Multifactor USA Index Fund,” and together with Min Vol EAFE Index Fund, Min Vol USA Index Fund and Multifactor Intl Index Fund, the “Funds”), each a series of the Trust, and BlackRock Advisors, LLC (the “Manager”), the Trust’s investment advisor. The Board also considered the approval of the sub-advisory agreement between the Manager and BlackRock Fund Advisors (the “Sub-Advisor”) with respect to each Fund (the “Sub-Advisory Agreement”). The Manager and the Sub-Advisor are referred to herein as “BlackRock.” The Advisory Agreement and the Sub-Advisory Agreement are referred to herein as the “Agreements.”

Activities and Composition of the Board

On the date of the May Meeting, the Board consisted of fourteen individuals, twelve of whom were not “interested persons” of the Trust as defined in the Investment Company Act of 1940, as amended (the “1940 Act”) (the “Independent Board Members”). The Board Members are responsible for the oversight of the operations of the Trust and perform the various duties imposed on the directors of investment companies by the 1940 Act. The Independent Board Members have retained independent legal counsel to assist them in connection with their duties. The Chair of the Board is an Independent Board Member. The Board has established five standing committees: an Audit Committee, a Governance and Nominating Committee, a Compliance Committee, a Performance Oversight Committee and an Ad Hoc Topics Committee, each of which is chaired by an Independent Board Member and composed of Independent Board Members (except for the Ad Hoc Topics Committee, which also has one interested Board Member).

The Agreements

Consistent with the requirements of the 1940 Act, the Board considers the continuation of the Agreements on an annual basis. The Board has four quarterly meetings per year, each typically extending for two days, and additional in-person and telephonic meetings throughout the year, as needed. While the Board also has a fifth one-day meeting to consider specific information surrounding the renewal of the Agreements, the Board’s consideration entails a year-long deliberative process whereby the Board and its committees assess BlackRock’s services to the Funds. In particular, the Board assessed, among other things, the nature, extent and quality of the services provided to each Fund by BlackRock, BlackRock’s personnel and affiliates, including (as applicable): investment management services; accounting oversight; administrative and shareholder services; oversight of each Fund’s service providers; risk management and oversight; and legal, regulatory and compliance services. Throughout the year, including during the contract renewal process, the Independent Board Members were advised by independent legal counsel, and met with independent legal counsel in various executive sessions outside of the presence of BlackRock’s management.

During the year, the Board, acting directly and through its committees, considers information that is relevant to its annual consideration of the renewal of the Agreements, including the services and support provided by BlackRock to each Fund and its shareholders. BlackRock also furnished additional information to the Board in response to specific questions from the Board. This additional information is discussed further below in the section titled “Board Considerations in Approving the Agreements.” Among the matters the Board considered were: (a) with respect to each Fund, investment performance for one-year, three-year, five-year and/or since inception periods, as applicable, against peer funds, an applicable benchmark, and other performance metrics, as applicable, as well as BlackRock senior management’s and portfolio managers’ analyses of the reasons for any outperformance or underperformance relative to the Fund’s peers, benchmarks, and other performance metrics, as applicable; (b) fees, including advisory, administration, if applicable, and other amounts paid to BlackRock and its affiliates by each Fund for services; (c) Fund operating expenses and how BlackRock allocates expenses to each Fund; (d) the resources devoted to risk oversight of, and compliance reports relating to, implementation of each Fund’s investment objective, policies and restrictions, and meeting regulatory requirements; (e) BlackRock’s and the Trust’s adherence to applicable compliance policies and procedures; (f) the nature, character and scope of non-investment management services provided by BlackRock and its affiliates and the estimated cost of such services; (g) BlackRock’s and other service providers’ internal controls and risk and compliance oversight mechanisms; (h) BlackRock’s implementation of the proxy voting policies approved by the Board; (i) the use of brokerage commissions and execution quality of portfolio transactions; (j) BlackRock’s implementation of the Trust’s valuation and liquidity procedures; (k) an analysis of management fees for products with similar investment mandates across the open-end fund, exchange-traded fund (“ETF”), closed-end fund, sub-advised mutual fund, separately managed account, collective investment trust, and institutional separate account product channels, as applicable, and the similarities and differences between these products and the services provided as compared to each Fund; (l) BlackRock’s compensation methodology for its investment professionals and the incentives and accountability it creates, along with investment professionals’ investments in the fund(s) they manage; and (m) periodic updates on BlackRock’s business.

Board Considerations in Approving the Agreements

The Approval Process: Prior to the April Meeting, the Board requested and received materials specifically relating to the Agreements. The Independent Board Members are continuously engaged in a process with their independent legal counsel and BlackRock to review the nature and scope of the information provided to the Board to better assist its deliberations. The materials provided in connection with the April Meeting included, among other things: (a) information independently compiled and prepared by Broadridge Financial Solutions, Inc. (“Broadridge”), based on either a Lipper classification or Morningstar category, regarding each Fund’s fees and expenses as compared with a peer group of funds as determined by Broadridge (“Expense Peers”) and the investment performance of each Fund as compared with a peer group of funds (“Performance Peers”); (b) information on the composition of the Expense Peers and Performance Peers, and a description of Broadridge’s methodology; (c) information on the estimated profits realized by BlackRock and its affiliates pursuant to the Agreements and a discussion of fall-out benefits to BlackRock and its affiliates; (d) a general analysis provided by BlackRock concerning investment management fees received in connection with other types of investment products, such as institutional accounts, sub-advised mutual funds, ETFs, closed-end funds, open-end funds, and separately managed accounts under similar investment mandates, as well as the performance of such other products, as applicable; (e) a review of non-management fees; (f) the existence, impact and sharing of potential economies of scale, if any, with the Funds; (g) a summary of aggregate amounts paid by each Fund to BlackRock; (h) sales and redemption data regarding each Fund’s shares; and (i) various additional information requested by the Board as appropriate regarding BlackRock’s and each Fund’s operations.

 

 

58  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Disclosure of Investment Advisory Agreement and Sub-Advisory Agreement  (continued)

 

At the April Meeting, the Board reviewed materials relating to its consideration of the Agreements. As a result of the discussions that occurred during the April Meeting, and as a culmination of the Board’s year-long deliberative process, the Board presented BlackRock with questions and requests for additional information. BlackRock responded to these questions and requests with additional written information in advance of the May Meeting.

At the May Meeting, the Board concluded its assessment of, among other things: (a) the nature, extent and quality of the services provided by BlackRock; (b) the investment performance of each Fund as compared to its Performance Peers and to other metrics, as applicable; (c) the advisory fee and the estimated cost of the services and estimated profits realized by BlackRock and its affiliates from their relationship with the Funds; (d) each Fund’s fees and expenses compared to its Expense Peers; (e) the existence and sharing of potential economies of scale; (f) any fall-out benefits to BlackRock and its affiliates as a result of BlackRock’s relationship with the Funds; and (g) other factors deemed relevant by the Board Members.

The Board also considered other matters it deemed important to the approval process, such as other payments made to BlackRock or its affiliates relating to securities lending and cash management, and BlackRock’s services related to the valuation and pricing of each Fund’s portfolio holdings. The Board noted the willingness of BlackRock’s personnel to engage in open, candid discussions with the Board. The Board did not identify any particular information as determinative, and each Board Member may have attributed different weights to the various items considered.

A. Nature, Extent and Quality of the Services Provided by BlackRock: The Board, including the Independent Board Members, reviewed the nature, extent and quality of services provided by BlackRock, including the investment advisory services, and the resulting performance of each Fund. Throughout the year, the Board compared each Fund’s performance to the performance of a comparable group of mutual funds, relevant benchmark, and performance metrics, as applicable. The Board met with BlackRock’s senior management personnel responsible for investment activities, including the senior investment officers. The Board also reviewed the materials provided by each Fund’s portfolio management team discussing the Fund’s performance, investment strategies and outlook.

The Board considered, among other factors, with respect to BlackRock: the number, education and experience of investment personnel generally and each Fund’s portfolio management team; research capabilities; investments by portfolio managers in the funds they manage; portfolio trading capabilities; use of technology; commitment to compliance; credit analysis capabilities; risk analysis and oversight capabilities; and the approach to training and retaining portfolio managers and other research, advisory and management personnel. The Board also considered BlackRock’s overall risk management program, including the continued efforts of BlackRock and its affiliates to address cybersecurity risks and the role of BlackRock’s Risk & Quantitative Analysis Group. The Board engaged in a review of BlackRock’s compensation structure with respect to each Fund’s portfolio management team and BlackRock’s ability to attract and retain high-quality talent and create performance incentives.

In addition to investment advisory services, the Board considered the nature and quality of the administrative and other non-investment advisory services provided to each Fund. BlackRock and its affiliates provide the Funds with certain administrative, shareholder and other services (in addition to any such services provided to the Funds by third parties) and officers and other personnel as are necessary for the operations of the Funds. In particular, BlackRock and its affiliates provide the Funds with administrative services including, among others: (i) responsibility for disclosure documents, such as the prospectus, the summary prospectus (as applicable), the statement of additional information and periodic shareholder reports; (ii) oversight of daily accounting and pricing; (iii) responsibility for periodic filings with regulators; (iv) overseeing and coordinating the activities of third-party service providers, including, among others, each Fund’s custodian, fund accountant, transfer agent, and auditor; (v) organizing Board meetings and preparing the materials for such Board meetings; (vi) providing legal and compliance support; (vii) furnishing analytical and other support to assist the Board in its consideration of strategic issues such as the merger, consolidation or repurposing of certain open-end funds; and (viii) performing or managing administrative functions necessary for the operation of each Fund, such as tax reporting, expense management, fulfilling regulatory filing requirements, overseeing each Fund’s distribution partners, and shareholder call center and other services. The Board reviewed the structure and duties of BlackRock’s fund administration, shareholder services, and legal & compliance departments and considered BlackRock’s policies and procedures for assuring compliance with applicable laws and regulations.

B. The Investment Performance of the Funds and BlackRock: The Board, including the Independent Board Members, also reviewed and considered the performance history of each Fund. In preparation for the April Meeting, the Board was provided with reports independently prepared by Broadridge, which included an analysis of each Fund’s performance as of December 31, 2019, as compared to its Performance Peers. Broadridge ranks funds in quartiles, ranging from first to fourth, where first is the most desirable quartile position and fourth is the least desirable. In connection with its review, the Board received and reviewed information regarding the investment performance of each Fund as compared to its Performance Peers and the performance of each Fund as compared with its benchmark. The Board and its Performance Oversight Committee regularly review, and meet with Fund management to discuss, the performance of each Fund throughout the year.

In evaluating performance, the Board focused particular attention on funds with less favorable performance records. The Board also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including in particular, that notable differences may exist between a fund and its Performance Peers (for example, the investment objectives and strategies). Further, the Board recognized that the performance data reflects a snapshot of a period as of a particular date and that selecting a different performance period could produce significantly different results. The Board also acknowledged that long-term performance could be impacted by even one period of significant outperformance or underperformance, and that a single investment theme could have the ability to disproportionately affect long-term performance.

The Board noted that for the one-year period reported, Min Vol USA Index Fund’s net performance was above the tolerance range of its benchmark. The Board and BlackRock reviewed the Fund’s above tolerance performance relative to its benchmark over the period.

The Board noted that for the one-year period reported, the net performance of each of Min Vol EAFE Index Fund and Multifactor Intl Index Fund was within the tolerance range of its benchmark.

The Board noted that for the one-year period reported, Multifactor USA Index Fund’s net performance was below the tolerance range of its benchmark. The Board and BlackRock reviewed the Fund’s below tolerance performance relative to its benchmark over the period. The Board was informed that, among other things, the Fund’s below tolerance performance was primarily attributable to the impact of post-notified flows. Post-notified activity is a source of performance variation, relative to the benchmark, because the flow information is received after the close of the effective date of the activity introducing either a drag or boost to performance.

 

 

DISCLOSURE OF INVESTMENT ADVISORY AGREEMENT AND  SUB-ADVISORY AGREEMENT

   59

Disclosure of Investment Advisory Agreement and Sub-Advisory Agreement  (continued)

 

The Board noted that BlackRock believes that net performance relative to the pertinent benchmark is an appropriate performance metric for each Fund, and that BlackRock has explained its rationale for this belief to the Board.

C. Consideration of the Advisory/Management Fees and the Estimated Cost of the Services and Estimated Profits Realized by BlackRock and its Affiliates from their Relationship with the Funds: The Board, including the Independent Board Members, reviewed each Fund’s contractual management fee rate compared with those of its Expense Peers. The contractual management fee rate represents a combination of the advisory fee and any administrative fees, before taking into account any reimbursements or fee waivers. The Board also compared each Fund’s total expense ratio, as well as its actual management fee rate, to those of its Expense Peers. The total expense ratio represents a fund’s total net operating expenses, including any 12b-1 or non-12b-1 service fees. The total expense ratio gives effect to any expense reimbursements or fee waivers, and the actual management fee rate gives effect to any management fee reimbursements or waivers. The Board considered the services provided and the fees charged by BlackRock and its affiliates to other types of clients with similar investment mandates, as applicable, including institutional accounts and sub-advised mutual funds (including mutual funds sponsored by third parties).

The Board received and reviewed statements relating to BlackRock’s financial condition. The Board reviewed BlackRock’s profitability methodology and was also provided with an estimated profitability analysis that detailed the revenues earned and the expenses incurred by BlackRock for services provided to each Fund. The Board reviewed BlackRock’s estimated profitability with respect to each Fund and other funds the Board currently oversees for the year ended December 31, 2019 compared to available aggregate estimated profitability data provided for the prior two years. The Board reviewed BlackRock’s estimated profitability with respect to certain other U.S. fund complexes managed by BlackRock and/or its affiliates. The Board reviewed BlackRock’s assumptions and methodology of allocating expenses in the estimated profitability analysis, noting the inherent limitations in allocating costs among various advisory products. The Board recognized that profitability may be affected by numerous factors including, among other things, fee waivers and expense reimbursements by BlackRock, the types of funds managed, precision of expense allocations and business mix. The Board thus recognized that calculating and comparing profitability at the individual fund level is difficult.

The Board noted that, in general, individual fund or product line profitability of other advisors is not publicly available. The Board reviewed BlackRock’s overall operating margin, in general, compared to that of certain other publicly traded asset management firms. The Board considered the differences between BlackRock and these other firms, including the contribution of technology at BlackRock, BlackRock’s expense management, and the relative product mix.

The Board considered whether BlackRock has the financial resources necessary to attract and retain high quality investment management personnel to perform its obligations under the Agreements and to continue to provide the high quality of services that is expected by the Board. The Board further considered factors including but not limited to BlackRock’s commitment of time, assumption of risk, and liability profile in servicing the Funds, including in contrast to what is required of BlackRock with respect to other products with similar investment mandates across the open-end fund, ETF, closed-end fund, sub-advised mutual fund, separately managed account, collective investment trust, and institutional separate account product channels, as applicable.

The Board noted that Min Vol EAFE Index Fund’s contractual management fee rate ranked in the first quartile, and that the actual management fee rate and total expense ratio each ranked in the first quartile relative to the Fund’s Expense Peers. The Board also noted that BlackRock and the Board have contractually agreed to a cap on the Fund’s total expenses as a percentage of the Fund’s average daily net assets on a class-by-class basis. In addition, the Board noted that BlackRock proposed, and the Board agreed to, a lower contractual expense cap on a class-by-class basis. This expense cap reduction was implemented on July 31, 2019.

The Board noted that Min Vol USA Index Fund’s contractual management fee rate ranked in the first quartile, and that the actual management fee rate and total expense ratio each ranked in the first quartile relative to the Fund’s Expense Peers. The Board also noted that BlackRock and the Board have contractually agreed to a cap on the Fund’s total expenses as a percentage of the Fund’s average daily net assets on a class-by-class basis.

The Board noted that Multifactor Intl Index Fund’s contractual management fee rate ranked in the second quartile, and that the actual management fee rate and total expense ratio ranked in the first and second quartiles, respectively, relative to the Fund’s Expense Peers. The Board also noted that BlackRock and the Board have contractually agreed to a cap on the Fund’s total expenses as a percentage of the Fund’s average daily net assets on a class-by-class basis.

The Board noted that Multifactor USA Index Fund’s contractual management fee rate ranked in the third quartile, and that the actual management fee rate and total expense ratio ranked in the first and third quartiles, respectively, relative to the Fund’s Expense Peers. The Board also noted that BlackRock and the Board have contractually agreed to a cap on the Fund’s total expenses as a percentage of the Fund’s average daily net assets on a class-by-class basis.

D. Economies of Scale: The Board, including the Independent Board Members, considered the extent to which economies of scale might be realized as the assets of the Funds increase, including the existence of fee waivers and/or expense caps, as applicable, noting that any contractual fee waivers and contractual expense caps had been approved by the Board. In its consideration, the Board further considered the continuation and/or implementation of fee waivers and/or expense caps, as applicable. The Board also considered the extent to which each Fund benefits from such economies of scale in a variety of ways and whether there should be changes in the advisory fee rate or breakpoint structure in order to enable the Funds to more fully participate in these economies of scale. The Board considered each Fund’s asset levels and whether the current fee schedule was appropriate.

E. Other Factors Deemed Relevant by the Board Members: The Board, including the Independent Board Members, also took into account other ancillary or “fall-out” benefits that BlackRock or its affiliates may derive from BlackRock’s respective relationships with the Funds, both tangible and intangible, such as BlackRock’s ability to leverage its investment professionals who manage other portfolios and its risk management personnel, an increase in BlackRock’s profile in the investment advisory community, and the engagement of BlackRock’s affiliates as service providers to the Funds, including for administrative, distribution, securities lending and cash management services. The Board also considered BlackRock’s overall operations and its efforts to expand the scale of, and improve the quality of, its operations. The Board also noted that, subject to applicable law, BlackRock may use and benefit from third-party research obtained by soft dollars generated by certain registered fund transactions to assist in managing all or a number of its other client accounts.

In connection with its consideration of the Agreements, the Board also received information regarding BlackRock’s brokerage and soft dollar practices. The Board received reports from BlackRock which included information on brokerage commissions and trade execution practices throughout the year.

 

 

60  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Disclosure of Investment Advisory Agreement and Sub-Advisory Agreement  (continued)

 

The Board noted the competitive nature of the open-end fund marketplace, and that shareholders are able to redeem their Fund shares if they believe that the pertinent Fund’s fees and expenses are too high or if they are dissatisfied with the performance of the Fund.

Conclusion

The Board, including the Independent Board Members, unanimously approved the continuation of the Advisory Agreement between the Manager and the Trust, on behalf of each Fund, for a one-year term ending June 30, 2021, and the Sub-Advisory Agreement between the Manager and the Sub-Advisor with respect to each Fund, for a one-year term ending June 30, 2021. Based upon its evaluation of all of the aforementioned factors in their totality, as well as other information, the Board, including the Independent Board Members, was satisfied that the terms of the Agreements were fair and reasonable and in the best interest of each Fund, as pertinent, and its shareholders. In arriving at its decision to approve the Agreements, the Board did not identify any single factor or group of factors as all-important or controlling, but considered all factors together, and different Board Members may have attributed different weights to the various factors considered. The Independent Board Members were also assisted by the advice of independent legal counsel in making this determination.

 

 

DISCLOSURE OF INVESTMENT ADVISORY AGREEMENT AND  SUB-ADVISORY AGREEMENT

   61

Trustee and Officer Information

 

Independent Trustees (a)
         

Name

Year of Birth (b)

   

Position(s) Held

(Length of Service) (c)

   Principal Occupation(s) During Past Five Years   

Number of BlackRock-Advised
Registered Investment Companies

(“RICs”) Consisting of
Investment Portfolios
(“Portfolios”) Overseen

    Public Company and Other
Investment Company
Directorships Held During
Past Five Years
Mark Stalnecker
1951		    Chair of the Board
(Since 2019) and Trustee (Since 2015)		    Chief Investment Officer, University of Delaware from 1999 to 2013; Trustee and Chair of the Finance and Investment Committees, Winterthur Museum and Country Estate from 2005 to 2016; Member of the Investment Committee, Delaware Public Employees’ Retirement System since 2002; Member of the Investment Committee, Christiana Care Health System from 2009 to 2017; Member of the Investment Committee, Delaware Community Foundation from 2013 to 2014; Director and Chair of the Audit Committee, SEI Private Trust Co. from 2001 to 2014.    36 RICs consisting of 155 Portfolios    None
Bruce R. Bond
1946		    Trustee
(Since 2019)		    Board Member, Amsphere Limited (software) since 2018; Trustee and Member of the Governance Committee, State Street Research Mutual Funds from 1997 to 2005; Board Member of Governance, Audit and Finance Committee, Avaya Inc. (computer equipment) from 2003 to 2007.    36 RICs consisting of 155 Portfolios    None
Susan J. Carter
1956		    Trustee
(Since 2016)		    Director, Pacific Pension Institute from 2014 to 2018; Advisory Board Member, Center for Private Equity and Entrepreneurship at Tuck School of Business since 1997; Senior Advisor, Commonfund Capital, Inc. (“CCI”) (investment adviser) in 2015; Chief Executive Officer, CCI from 2013 to 2014; President & Chief Executive Officer, CCI from 1997 to 2013; Advisory Board Member, Girls Who Invest from 2015 to 2018 and Board Member thereof since 2018; Advisory Board Member, Bridges Fund Management since 2016; Trustee, Financial Accounting Foundation since 2017; Practitioner Advisory Board Member, Private Capital Research Institute (“PCRI”) since 2017; Lecturer in the Practice of Management, Yale School of Management since 2019.    36 RICs consisting of 155 Portfolios    None
Collette Chilton
1958		    Trustee
(Since 2015)		    Chief Investment Officer, Williams College since 2006; Chief Investment Officer, Lucent Asset Management Corporation from 1998 to 2006.    36 RICs consisting of 155 Portfolios    None
Neil A. Cotty
1954		    Trustee
(Since 2016)		    Bank of America Corporation from 1996 to 2015, serving in various senior finance leadership roles, including Chief Accounting Officer from 2009 to 2015, Chief Financial Officer of Global Banking, Markets and Wealth Management from 2008 to 2009, Chief Accounting Officer from 2004 to 2008, Chief Financial Officer of Consumer Bank from 2003 to 2004, Chief Financial Officer of Global Corporate Investment Bank from 1999 to 2002.    36 RICs consisting of 155 Portfolios    None
Lena G. Goldberg
1949		    Trustee
(Since 2019)		    Senior Lecturer, Harvard Business School, since 2008; Director, Charles Stark Draper Laboratory, Inc. since 2013; FMR LLC/Fidelity Investments (financial services) from 1996 to 2008, serving in various senior roles including Executive Vice President — Strategic Corporate Initiatives and Executive Vice President and General Counsel; Partner, Sullivan & Worcester LLP from 1985 to 1996 and Associate thereof from 1979 to 1985.    36 RICs consisting of 155 Portfolios    None

 

 

62  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Trustee and Officer Information  (continued)

 

Independent Trustees (a) (continued)
         

Name

Year of Birth (b)

   

Position(s) Held

(Length of Service) (c)

   Principal Occupation(s) During Past Five Years   

Number of BlackRock-Advised
Registered Investment Companies

(“RICs”) Consisting of
Investment Portfolios
(“Portfolios”) Overseen

    Public Company and Other
Investment Company
Directorships Held During
Past Five Years
Henry R. Keizer
1956		    Trustee
(Since 2019)		    Director, Park Indemnity Ltd. (captive insurer) since 2010; Director, MUFG Americas Holdings Corporation and MUFG Union Bank, N.A. (financial and bank holding company) from 2014 to 2016; Director, American Institute of Certified Public Accountants from 2009 to 2011; Director, KPMG LLP (audit, tax and advisory services) from 2004 to 2005 and 2010 to 2012; Director, KPMG International in 2012, Deputy Chairman and Chief Operating Officer thereof from 2010 to 2012 and U.S. Vice Chairman of Audit thereof from 2005 to 2010; Global Head of Audit, KPMGI (consortium of KPMG firms) from 2006 to 2010; Director, YMCA of Greater New York from 2006 to 2010.    36 RICs consisting of 155 Portfolios    Hertz Global Holdings (car rental); Montpelier Re Holdings, Ltd. (publicly held property and casualty reinsurance) from 2013 until 2015; WABCO (commercial vehicle safety systems); Sealed Air Corp. (packaging)
Cynthia A. Montgomery
1952		    Trustee
(Since 2007)		    Professor, Harvard Business School since 1989.    36 RICs consisting of 155 Portfolios    Newell Rubbermaid, Inc. (manufacturing)
Donald C. Opatrny
1952		    Trustee
(Since 2019)		    Trustee, Vice Chair, Member of the Executive Committee and Chair of the Investment Committee, Cornell University since 2004; President, Trustee and Member of the Investment Committee, The Aldrich Contemporary Art Museum from 2007 to 2014; Member of the Board and Investment Committee, University School from 2007 to 2018; Member of the Investment Committee, Mellon Foundation from 2009 to 2015; Trustee, Artstor (a Mellon Foundation affiliate) from 2010 to 2015; President and Trustee, the Center for the Arts, Jackson Hole from 2011 to 2018; Director, Athena Capital Advisors LLC (investment management firm) since 2013; Trustee and Chair of the Investment Committee, Community Foundation of Jackson Hole since 2014; Member of Affordable Housing Supply Board of Jackson, Wyoming since 2018; Member, Investment Funds Committee, State of Wyoming since 2017; Trustee, Phoenix Art Museum since 2018; Trustee, Arizona Community Foundation and Member of Investment Committee since 2020.    36 RICs consisting of 155 Portfolios    None
Joseph P. Platt
1947		    Trustee
(Since 2007)		    General Partner, Thorn Partners, LP (private investments) since 1998; Director, WQED Multi-Media (public broadcasting not-for-profit) since 2001; Chair, Basic Health International (non-profit) since 2015.    36 RICs consisting of 155 Portfolios    Greenlight Capital Re, Ltd. (reinsurance company); Consol Energy Inc.
Kenneth L. Urish
1951		    Trustee
(Since 2007)		    Managing Partner, Urish Popeck & Co., LLC (certified public accountants and consultants) since 1976; Past-Chairman of the Professional Ethics Committee of the Pennsylvania Institute of Certified Public Accountants and Committee Member thereof since 2007; Member of External Advisory Board, The Pennsylvania State University Accounting Department since founding in 2001; Principal, UP Strategic Wealth Investment Advisors, LLC since 2013; Trustee, The Holy Family Institute from 2001 to 2010; President and Trustee, Pittsburgh Catholic Publishing Associates from 2003 to 2008; Director, Inter-Tel from 2006 to 2007.    36 RICs consisting of 155 Portfolios    None
Claire A. Walton
1957		    Trustee
(Since 2016)		    Chief Operating Officer and Chief Financial Officer of Liberty Square Asset Management, LP from 1998 to 2015; General Partner of Neon Liberty Capital Management, LLC since 2003; Director, Boston Hedge Fund Group from 2009 to 2018; Director, Woodstock Ski Runners since 2013; Director, Massachusetts Council on Economic Education from 2013 to 2015.    36 RICs consisting of 155 Portfolios    None

 

 

TRUSTEE AND OFFICER INFORMATION

   63

Trustee and Officer Information  (continued)

 

Interested Trustees (a)(d)
         

Name

Year of Birth (b)

  

Position(s) Held

(Length of Service) (c)

   Principal Occupation(s) During Past Five Years    Number of BlackRock-Advised
Registered Investment Companies
(“RICs”)  Consisting of
Investment Portfolios
(“Portfolios”) Overseen		    Public Company and Other
Investment Company
Directorships Held During
Past Five Years
Robert Fairbairn
1965		    Trustee
(Since 2018)		    Vice Chairman of BlackRock, Inc. since 2019; Member of BlackRock’s Global Executive and Global Operating Committees; Co-Chair of BlackRock’s Human Capital Committee; Senior Managing Director of BlackRock, Inc. from 2010 to 2019; oversaw BlackRock’s Strategic Partner Program and Strategic Product Management Group from 2012 to 2019; Member of the Board of Managers of BlackRock Investments, LLC from 2011 to 2018; Global Head of BlackRock’s Retail and iShares® businesses from 2012 to 2016.    122 RICs consisting of 265 Portfolios    None
John M. Perlowski (e)
1964		    Trustee
(Since 2015), President and Chief Executive Officer
(Since 2010)		    Managing Director of BlackRock, Inc. since 2009; Head of BlackRock Global Accounting and Product Services since 2009; Advisory Director of Family Resource Network (charitable foundation) since 2009.    123 RICs consisting of 266 Portfolios    None

(a) The address of each Trustee is c/o BlackRock, Inc., 55 East 52nd Street, New York, New York 10055.

(b) Independent Trustees serve until their resignation, retirement, removal or death, or until December 31 of the year in which they turn 75. The Board may determine to extend the terms of Independent Trustees on a case-by-case basis, as appropriate.

(c) Following the combination of Merrill Lynch Investment Managers, L.P. (“MLIM”) and BlackRock, Inc. in September 2006, the various legacy MLIM and legacy BlackRock fund boards were realigned and consolidated into three new fund boards in 2007. Furthermore, effective January 1, 2019, three BlackRock Fund Complexes were realigned and consolidated into two BlackRock Fund Complexes. As a result, although the chart shows the year that each Independent Trustee joined the Board, certain Independent Trustees first became members of the boards of other BlackRock-advised Funds or legacy BlackRock funds as follows: Bruce R. Bond, 2005; Cynthia A. Montgomery, 1994; Joseph P. Platt, 1999; Kenneth L. Urish, 1999; Lena G. Goldberg, 2016; Henry R. Keizer, 2016; Donald C. Opatrny, 2015.

(d) Mr. Fairbairn and Mr. Perlowski are both “interested persons,” as defined in the 1940 Act, of the Trust based on their positions with BlackRock, Inc. and its affiliates. Mr. Fairbairn and Mr. Perlowski are also board members of the BlackRock Fixed-Income Complex.

(e) Mr. Perlowski is also a trustee of the BlackRock Credit Strategies Fund.

 

 

64  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Trustee and Officer Information  (continued)

 

Officers Who Are Not Trustees (a)
     

Name

Year of Birth (b)

  

Position(s) Held

(Length of Service)

    Principal Occupation(s) During Past Five Years
Thomas Callahan
1968		    Vice President
(Since 2016)		    Managing Director of BlackRock, Inc. since 2013; Member of the Board of Managers of BlackRock Investments, LLC (principal underwriter) since 2019 and Managing Director thereof since 2017; Head of BlackRock’s Global Cash Management Business since 2016; Co-Head of the Global Cash Management Business from 2014 to 2016; Deputy Head of the Global Cash Management Business from 2013 to 2014; Member of the Cash Management Group Executive Committee since 2013; Chief Executive Officer of NYSE Liffe U.S. from 2008 to 2013.
Jennifer McGovern
1977		    Vice President
(Since 2014)		    Managing Director of BlackRock, Inc. since 2016; Director of BlackRock, Inc. from 2011 to 2015; Head of Americas Product Development and Governance for BlackRock’s Global Product Group since 2019; Head of Product Structure and Oversight for BlackRock’s U.S. Wealth Advisory Group from 2013 to 2019.
Neal J. Andrews
1966		    Chief Financial Officer
(Since 2007)		    Chief Financial Officer of the iShares® exchange traded funds from 2019 to 2020; Managing Director of BlackRock, Inc. since 2006.
Jay M. Fife
1970		    Treasurer
(Since 2007)		    Managing Director of BlackRock, Inc. since 2007.
Charles Park
1967		    Chief Compliance Officer
(Since 2014)		    Anti-Money Laundering Compliance Officer for certain BlackRock-advised Funds from 2014 to 2015; 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; Principal of and Chief Compliance Officer for iShares® Delaware Trust Sponsor LLC since 2012 and BlackRock Fund Advisors (“BFA”) since 2006; Chief Compliance Officer for the BFA-advised iShares® exchange traded funds since 2006; Chief Compliance Officer for BlackRock Asset Management International Inc. since 2012.
Lisa Belle
1968		    Anti-Money Laundering Compliance Officer
(Since 2019)		    Managing Director of BlackRock, Inc. since 2019; Global Financial Crime Head for Asset and Wealth Management of JP Morgan from 2013 to 2019; Managing Director of RBS Securities from 2012 to 2013; Head of Financial Crimes for Barclays Wealth Americas from 2010 to 2012.
Janey Ahn
1975		    Secretary
(Since 2019)		    Managing Director of BlackRock, Inc. since 2018; Director of BlackRock, Inc. from 2009 to 2017.

(a) The address of each Officer is c/o BlackRock, Inc., 55 East 52nd Street, New York, New York 10055.

(b) Officers of the Trust serve at the pleasure of the Board.

Further information about the Trust’s Trustees and Officers is available in the Trust’s Statement of Additional Information, which can be obtained without charge by calling (800) 441-7762.

 

Investment Adviser and Administrator

BlackRock Advisors, LLC

Wilmington, DE 19809

Sub-Adviser

BlackRock Fund Advisors

San Francisco, CA 94105

Accounting Agent and Custodian

State Street Bank and Trust Company

Boston, MA 02111

Transfer Agent

BNY Mellon Investment Servicing (US) Inc.

Wilmington, DE 19809

Distributor

BlackRock Investments, LLC

New York, NY 10022

Independent Registered Public Accounting Firm

PricewaterhouseCoopers LLP

Philadelphia, PA 19103

Legal Counsel

Sidley Austin LLP

New York, NY 10019

Address of the Trust

100 Bellevue Parkway

Wilmington, DE 19809

 

 

 

TRUSTEE AND OFFICER INFORMATION

   65

Additional Information

 

General Information

Householding

The Funds will mail only one copy of shareholder documents, including prospectuses, annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call the Funds at (800) 537-4942.

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.

Availability of Proxy Voting Policies and Procedures

A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available upon request and without charge (1) by calling (800) 537-4942; (2) at blackrock.com; and (3) on the SEC’s website at sec.gov.

Availability of Proxy Voting Record

Information about how the Funds voted proxies relating to securities held in the Funds’ portfolios during the most recent 12-month period ended June 30 is available upon request and without charge (1) at blackrock.com or by calling (800) 537-4942 and (2) on the SEC’s website at sec.gov.

BlackRock’s Mutual Fund Family

BlackRock offers a diverse lineup of open-end mutual funds crossing all investment styles and managed by experts in equity, fixed-income and tax-exempt investing. Visit blackrock.com for more information.

Shareholder Privileges

Account Information

Call us at (800) 537-4942 from 8:00 AM to 6:00 PM ET on any business day to get information about your account balances, recent transactions and share prices. You can also visit blackrock.com for more information.

Automatic Investment Plans

Investor class shareholders who want to invest regularly can arrange to have $50 or more automatically deducted from their checking or savings account and invested in any of the BlackRock funds.

Systematic Withdrawal Plans

Investor class shareholders can establish a systematic withdrawal plan and receive periodic payments of $50 or more from their BlackRock funds, as long as their account balance is at least $10,000.

Retirement Plans

Shareholders may make investments in conjunction with Traditional, Rollover, Roth, Coverdell, Simple IRAs, SEP IRAs and 403(b) Plans.

 

 

66  

2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Additional Information  (continued)

 

BlackRock Privacy Principles

BlackRock is committed to maintaining the privacy of its current and former fund investors and individual clients (collectively, “Clients”) and to safeguarding their non-public personal information. The following information is provided to help you understand what personal information BlackRock collects, how we protect that information and why in certain cases we share such information with select parties.

If you are located in a jurisdiction where specific laws, rules or regulations require BlackRock to provide you with additional or different privacy-related rights beyond what is set forth below, then BlackRock will comply with those specific laws, rules or regulations.

BlackRock obtains or verifies personal non-public information from and about you from different sources, including the following: (i) information we receive from you or, if applicable, your financial intermediary, on applications, forms or other documents; (ii) information about your transactions with us, our affiliates, or others; (iii) information we receive from a consumer reporting agency; and (iv) from visits to our websites.

BlackRock does not sell or disclose to non-affiliated third parties any non-public personal information about its Clients, except as permitted by law or as is necessary to respond to regulatory requests or to service Client accounts. These non-affiliated third parties are required to protect the confidentiality and security of this information and to use it only for its intended purpose.

We may share information with our affiliates to service your account or to provide you with information about other BlackRock products or services that may be of interest to you. In addition, BlackRock restricts access to non-public personal information about its Clients to those BlackRock employees with a legitimate business need for the information. BlackRock maintains physical, electronic and procedural safeguards that are designed to protect the non-public personal information of its Clients, including procedures relating to the proper storage and disposal of such information.

Glossary of Terms Used in this Report

 

Portfolio Abbreviations
ADR    American Depositary Receipts
ETF    Exchange-Traded Fund
FTSE    Financial Times Stock Exchange
MSCI    Morgan Stanley Capital International
REIT    Real Estate Investment Trust
S&P    Standard & Poor’s

 

 

ADDITIONAL INFORMATION / GLOSSARY OF TERMS USED IN THIS REPORT

   67

 

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This report is intended for current holders. It is not authorized for use as an offer of sale or a solicitation of an offer to buy shares of the Funds unless preceded or accompanied by the Funds’ current prospectus. Past performance results shown in this report should not be considered a representation of future performance. Investment returns and principal value of shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Statements and other information herein are as dated and are subject to change.

MFMV-7/20-AR

 

 

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Item 2 –

   Code of Ethics — The registrant (or the “Fund”) has adopted a code of ethics, as of the end of the period covered by this report, applicable to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. During the period covered by this report, the code of ethics was amended to update certain information and to make other non-material changes. During the period covered by this report, there have been no waivers granted under the code of ethics. The registrant undertakes to provide a copy of the code of ethics to any person upon request, without charge, who calls 1-800-441-7762.

Item 3 –

  

Audit Committee Financial Expert – The registrant’s board of directors (the “board of directors”), has determined that (i) the registrant has the following audit committee financial experts serving on its audit committee and (ii) each audit committee financial expert is independent:

 

Neil A. Cotty

Henry R. Keizer

Kenneth L. Urish

 

Under applicable securities laws, a person determined to be an audit committee financial expert will not be deemed an “expert” for any purpose, including without limitation for the purposes of Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert. The designation or identification of a person as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and board of directors in the absence of such designation or identification. The designation or identification of a person as an audit committee financial expert does not affect the duties, obligations, or liability of any other member of the audit committee or board of directors.

Item 4 –

  

Principal Accountant Fees and Services

 

The following table presents fees billed by PricewaterhouseCoopers LLP (“PwC”) in each of the last two fiscal years for the services rendered to the Fund:

 

     (a) Audit Fees   (b) Audit-Related Fees1   (c) Tax Fees2   (d) All Other Fees
Entity Name  

Current
Fiscal

Year

End

  

Previous
Fiscal

Year

End

  

Current
Fiscal

Year

End

  

Previous
Fiscal

Year

End

  

Current
Fiscal

Year

End

  

Previous
Fiscal

Year

End

  

Current
Fiscal

Year

End

  

Previous
Fiscal

Year

End

iShares Edge MSCI Min

Vol EAFE Index Fund

   $22,000   $22,000   $0   $0   $0   $0   $0   $0

iShares Edge MSCI Min

Vol USA Index Fund

   $22,000   $22,000   $0   $0   $0   $0   $0   $0

iShares Edge MSCI

Multifactor Intl Index Fund

   $22,000   $22,000   $0   $0   $0   $0   $0   $0

iShares Edge MSCI

Multifactor USA Index Fund

   $22,000   $22,000   $0   $0   $0   $0   $0   $0

iShares Russell Mid-Cap

Index Fund

   $22,000   $22,000   $0   $0   $0   $0   $0   $0

 

2

iShares Russell
Small/Mid-Cap Index Fund		   $22,000   $22,000   $0   $0   $0   $0   $0   $0
iShares Total U.S. Stock
Market Index Fund		   $22,000   $22,000   $0   $0   $0   $0   $0   $0

The following table presents fees billed by PwC that were required to be approved by the registrant’s audit committee (the “Committee”) for services that relate directly to the operations or financial reporting of the Fund and that are rendered on behalf of BlackRock Advisors, LLC ( the “Investment Adviser” or “BlackRock”) and entities controlling, controlled by, or under common control with BlackRock (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) that provide ongoing services to the Fund (“Affiliated Service Providers”):

 

     Current Fiscal Year End   Previous Fiscal Year End

(b) Audit-Related Fees1

   $0   $0

(c) Tax Fees2

   $0   $0

(d) All Other Fees3

   $0   $0

1 The nature of the services includes assurance and related services reasonably related to the performance of the audit or review of financial statements not included in Audit Fees, including accounting consultations, agreed-upon procedure reports, attestation reports, comfort letters, out-of-pocket expenses and internal control reviews not required by regulators.

2 The nature of the services includes tax compliance and/or tax preparation, including services relating to the filing or amendment of federal, state or local income tax returns, regulated investment company qualification reviews, taxable income and tax distribution calculations.

3 Aggregate fees borne by BlackRock in connection with the review of compliance procedures and attestation thereto performed by PwC with respect to all of the registered closed-end funds and some of the registered open-end funds advised by BlackRock.

(e)(1) Audit Committee Pre-Approval Policies and Procedures:

The Committee has adopted policies and procedures with regard to the pre-approval of services. Audit, audit-related and tax compliance services provided to the registrant on an annual basis require specific pre-approval by the Committee. The Committee also must approve other non-audit services provided to the registrant and those non-audit services provided to the Investment Adviser and Affiliated Service Providers that relate directly to the operations and the financial reporting of the registrant. Certain of these non-audit services that the Committee believes are (a) consistent with the SEC’s auditor independence rules and (b) routine and recurring services that will not impair the independence of the independent accountants may be approved by the Committee without consideration on a specific case-by-case basis (“general pre-approval”). The term of any general pre-approval is 12 months from the date of the pre-approval, unless the Committee provides for a different period. Tax or other non-audit services provided to the registrant which have a direct impact on the operations or financial reporting of the registrant will only be deemed pre-approved provided that any individual project does not exceed $10,000 attributable to the registrant or $50,000 per project. For this purpose, multiple projects will be aggregated to determine if they exceed the previously mentioned cost levels.

Any proposed services exceeding the pre-approved cost levels will require specific pre-approval by the Committee, as will any other services not subject to general pre-approval (e.g., unanticipated but permissible services). The Committee is informed of each service approved subject to general pre-approval at the next regularly scheduled in-person board meeting. At this meeting, an analysis of such services is presented to the Committee for ratification. The Committee may delegate to the Committee Chairman the authority to approve the provision of and fees for any specific engagement of permitted non-audit services, including services exceeding pre-approved cost levels.

 

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(e)(2) None of the services described in each of Items 4(b) through (d) were approved by the Committee pursuant to the de minimis exception in paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

(f) Not Applicable

(g) The aggregate non-audit fees, defined as the sum of the fees shown under “Audit-Related Fees,” “Tax Fees” and “All Other Fees,” paid to the accountant for services rendered by the accountant to the registrant, the Investment Adviser and the Affiliated Service Providers were:

 

Entity Name  

    Current Fiscal    

Year End

  

  Previous Fiscal  

Year End

iShares Edge MSCI Multifactor Intl Index   $0   $0
iShares Edge MSCI Multifactor USA Index Fund   $0   $0
iShares Edge MSCI Min Vol EAFE Index Fund   $0   $0
iShares Edge MSCI Min Vol USA Index Fund   $0   $0
iShares Russell Mid-Cap Index Fund   $0   $0
iShares Russell Small/Mid-Cap Index Fund   $0   $0
iShares Total U.S. Stock Market Index Fund   $0   $0

 

  (h) The Committee has considered and determined that the provision of non-audit services that were rendered to the Investment Adviser and the Affiliated Service Providers that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.

Item 5 –

   Audit Committee of Listed Registrant – Not Applicable

Item 6 –

   Investments
  (a) The registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this Form.
  (b) Not Applicable due to no such divestments during the semi-annual period covered since the previous Form N-CSR filing.

Item 7 –

   Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – Not Applicable

Item 8 –

   Portfolio Managers of Closed-End Management Investment Companies – Not Applicable

Item 9 –

   Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not Applicable

Item 10 –

   Submission of Matters to a Vote of Security Holders – There have been no material changes to these procedures.

Item 11 –

   Controls and Procedures
  (a) The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date

 

4

  within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 15d-15(b) under the Securities Exchange Act of 1934, as amended.
  (b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) 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

Item 13 –

   Exhibits attached hereto
  (a)(1) – Code of Ethics – See Item 2
  (a)(2) – Section 302 Certifications are attached
  (a)(3) – Not Applicable
  (a)(4) – Not Applicable
  (b) – Section 906 Certifications are attached

 

5

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.

BlackRock FundsSM

 

              

    By:       /s/ John M. Perlowski                    
    John M. Perlowski
    Chief Executive Officer (principal executive officer) of
    BlackRock FundsSM

Date: October 2, 2020

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/ John M. Perlowski                    
    John M. Perlowski
    Chief Executive Officer (principal executive officer) of
    BlackRock FundsSM

Date: October 2, 2020

 

              

    By:       /s/ Neal J. Andrews                        
    Neal J. Andrews
    Chief Financial Officer (principal financial officer) of
    BlackRock FundsSM

Date: October 2, 2020

 

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