UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-09102

iShares, Inc.

 

(Exact name of registrant as specified in charter)

 

c/o: State Street Bank and Trust Company

 

100 Summer Street, 4th Floor, Boston, MA

02110

(Address of principal executive offices)

(Zip code)

The Corporation Trust Incorporated

2405 York Road, Suite 201, Lutherville-Timonium, Maryland 21093

 

(Name and address of agent for service)

Registrant's telephone number, including area code:

(415) 670-2000

Date of fiscal year end:

August 31, 2020

 

Date of reporting period:

February 29, 2020

 

Item 1. Reports to Stockholders.

Copies of the semi-annual reports transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940 are attached.

 

 

FEBRUARY 29, 2020

 

2020 Semi-Annual Report
(Unaudited)

 

  

iShares, Inc.

 

iShares MSCI Austria ETF | EWO | NYSE Arca

iShares MSCI Belgium ETF | EWK | NYSE Arca

iShares MSCI France ETF | EWQ | NYSE Arca

iShares MSCI Netherlands ETF | EWN | NYSE Arca

iShares MSCI Sweden ETF | EWD | NYSE Arca

 

 

 

 

 

 

 

 

 

 

 

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

 

You may elect to receive all future reports in paper free of charge. If you hold accounts through a financial intermediary, you can follow the instructions included with this disclosure, if applicable, or contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. Please note that not all financial intermediaries may offer this service. Your election to receive reports in paper will apply to all funds held with your financial intermediary.

 

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive electronic delivery of shareholder reports and other communications by contacting your financial intermediary. Please note that not all financial intermediaries may offer this service.

 

 

 

 

Table of Contents

 

  Page
Fund Summary 3
About Fund Performance 8
Shareholder Expenses 8
Schedules of Investments 9
Financial Statements  
Statements of Assets and Liabilities 25
Statements of Operations 27
Statements of Changes in Net Assets 29
Financial Highlights 32
Notes to Financial Statements 37
Statement Regarding Liquidity Risk Management Program 45
Supplemental Information 46
General Information 47
Glossary of Terms Used in this Report 48

 

 

 

 

Fund Summary as of February 29, 2020 iShares® MSCI Austria ETF

 

Investment Objective

 

The iShares MSCI Austria ETF (the “Fund”) seeks to track the investment results of a broad-based index composed of Austrian equities, as represented by the MSCI Austria IMI 25/50 Index (the "Index"). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

 

Performance

 

          Average Annual Total Returns   Cumulative Total Returns
    6 Months     1 Year     5 Years     10 Years     1 Year      5 Years     10 Years  
Fund NAV   (4.50 )%   (8.10 )%   4.47 %   2.25 %   (8.10 )%   24.44 %   24.98 %
Fund Market   (3.13 )   (6.74 )   4.79     2.39     (6.74 )   26.38     26.70  
Index   (4.29 )   (8.09 )   4.63     2.39     (8.09 )   25.37     26.59  

 

Index performance through February 11, 2013 reflects the performance of the MSCI Austria Investable Market Index. Index performance beginning on February 12, 2013 reflects the performance of the MSCI Austria IMI 25/50 Index.

 

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 8 for more information.

 

Expense Example

 

Actual     Hypothetical 5% Return        
Beginning
Account Value
(09/01/19)
    Ending
Account Value
(02/29/20)
    Expenses
Paid During
the Period
(a)   Beginning
Account Value
(09/01/19)
    Ending
Account Value
(02/29/20)
    Expenses
Paid During
the
Period
(a)   Annualized
Expense
Ratio
 
$ 1,000.00     $ 955.00     $ 2.43     $ 1,000.00     $ 1,022.40     $ 2.51     0.50 %

 

(a) Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 8 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR  
    Percent of  
Sector   Total Investments (a)
Financials     36.0 %
Energy     13.7  
Real Estate     12.1  
Industrials     11.5  
Materials     11.2  
Utilities     8.0  
Communication Services     3.0  
Information Technology     2.0  
Consumer Discretionary     1.6  
Consumer Staples     0.9  
TEN LARGEST HOLDINGS  
    Percent of  
Security   Total Investments (a) 
Erste Group Bank AG     21.0 %
OMVAG     12.4  
Verbund AG     6.3  
Raiffeisen Bank International AG     5.3  
BAWAG Group AG     4.6  
ANDRITZAG     4.6  
CA Immobilien Anlagen AG     4.6  
voestalpine AG     4.6  
IMMOFINANZAG     4.5  
Wienerberger AG     4.4  


(a) Excludes money market funds.

 

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Fund Summary as of February 29, 2020 iShares® MSCI Belgium ETF

 

Investment Objective

 

The iShares MSCI Belgium ETF (the “Fund”) seeks to track the investment results of a broad-based index composed of Belgian equities, as represented by the MSCI Belgium IMI 25/50 Index (the "Index"). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

 

Performance

 

          Average Annual Total Returns   Cumulative Total Returns
    6 Months     1 Year     5 Years     10 Years     1 Year     5 Years     10 Years  
Fund NAV   (7.65 )%   (3.33 )%   1.83 %   6.07 %   (3.33 )%   9.49 %   80.34 %
Fund Market   (5.90 )   (1.27 )   2.32     6.28     (1.27 )   12.16     83.81  
Index   (7.57 )   (3.34 )   1.84     6.87     (3.34 )   9.54     94.35  

 

Index performance through November 8, 2012 reflects the performance of the MSCI Belgium Investable Market Index. Index performance beginning on November 9, 2012 reflects the performance of the MSCI Belgium IMI 25/50 Index.

 

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 8 for more information.

 

Expense Example

 

Actual     Hypothetical 5% Return        
Beginning
Account Value
(09/01/19)
    Ending
Account Value
(02/29/20)
    Expenses
Paid During
the Period
(a)   Beginning
Account Value
(09/01/19)
    Ending
Account Value
(02/29/20)
    Expenses
Paid During
the
Period
(a)   Annualized
Expense
Ratio
 
$ 1,000.00     $ 923.50     $ 2.39     $ 1,000.00     $ 1,022.40     $ 2.51     0.50 %

 

(a) Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 8 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR  
    Percent of  
Sector   Total Investments (a)
Financials     25.0 %
Consumer Staples     22.7  
Health Care     18.8  
Materials     10.3  
Real Estate     9.6  
Communication Services     4.8  
Information Technology     2.8  
Utilities     1.8  
Consumer Discretionary     1.6  
Energy     1.4  
Industrials     1.2  
TEN LARGEST HOLDINGS  
    Percent of  
Security   Total Investments (a)
Anheuser-Busch InBev SA/NV     20.2 %
KBC Group NV     9.8  
UCB SA     7.0  
Galapagos NV     5.6  
Umicore SA     4.6  
Groupe Bruxelles Lambert SA     4.5  
Ageas     4.3  
Solvay SA     4.1  
Argenx SE     3.6  
Cofinimmo SA     2.5  


(a) Excludes money market funds.

 

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Fund Summary as of February 29, 2020 iShares® MSCI France ETF

 

Investment Objective

 

The iShares MSCI France ETF (the “Fund”) seeks to track the investment results of an index composed of French equities, as represented by the MSCI France Index (the "Index"). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

 

Performance

 

          Average Annual Total Returns   Cumulative Total Returns
    6 Months     1 Year     5 Years     10 Years     1 Year     5 Years     10 Years  
Fund NAV   (2.34 )%   0.45 %   4.00 %   4.73 %   0.45 %   21.67 %   58.68 %
Fund Market   (1.45 )   1.58     4.35     4.88     1.58     23.71     61.10  
Index   (2.15 )   0.40     3.95     4.70     0.40     21.37     58.37  

 

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 8 for more information.

 

Expense Example

 

Actual     Hypothetical 5% Return        
Beginning
Account Value
(09/01/19)
    Ending
Account Value
(02/29/20)
    Expenses
Paid During
the Period
(a)   Beginning
Account Value
(09/01/19)
    Ending
Account Value
(02/29/20)
    Expenses
Paid During
the
Period
(a)   Annualized
Expense
Ratio
 
$ 1,000.00     $ 976.60     $ 2.46     $ 1,000.00     $ 1,022.40     $ 2.51     0.50 %

 

(a) Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 8 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR  
    Percent of  
Sector   Total Investments (a)
Industrials     22.1 %
Consumer Discretionary     18.6  
Consumer Staples     10.6  
Financials     10.5  
Health Care     8.1  
Energy     6.8  
Information Technology     6.3  
Materials     5.3  
Communication Services     5.1  
Utilities     4.0  
Real Estate     2.6  
TEN LARGEST HOLDINGS  
    Percent of  
Security   Total Investments (a)
LVMH Moet Hennessy Louis Vuitton SE     7.6 %
Sanofi     7.0  
TOTALSA     6.8  
Airbus SE     4.6  
L'Oreal SA     4.4  
Air Liquide SA     4.3  
Schneider Electric SE     3.7  
BNP Paribas SA     3.6  
Vinci SA     3.4  
Safran SA     3.0  


(a) Excludes money market funds.

 

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Fund Summary as of February 29, 2020 iShares® MSCI Netherlands ETF

 

Investment Objective

 

The iShares MSCI Netherlands ETF (the “Fund”) seeks to track the investment results of a broad-based index composed of Dutch equities, as represented by the MSCI Netherlands IMI 25/50 Index (the "Index"). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

 

Performance 

 

          Average Annual Total Returns   Cumulative Total Returns
    6 Months     1 Year     5 Years     10 Years     1 Year     5 Years     10 Years  
Fund NAV   (0.97 )%   4.58 %   5.60 %   7.05 %   4.58 %   31.34 %   97.70 %
Fund Market   (0.18 )   5.63     5.85     7.14     5.63     32.85     99.34  
Index   (0.76 )   5.06     6.10     7.43     5.06     34.48     104.71  

 

Index performance through August 31, 2017 reflects the performance of the MSCI Netherlands Investable Market Index. Index performance beginning on September 1, 2017 reflects the performance of the MSCI Netherlands IMI 25/50.

 

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 8 for more information.

 

Expense Example

 

Actual     Hypothetical 5% Return        
Beginning
Account Value
(09/01/19)
    Ending
Account Value
(02/29/20)
    Expenses
Paid During
the Period
(a)   Beginning
Account Value
(09/01/19)
    Ending
Account Value
(02/29/20)
    Expenses
Paid During
the
Period
(a)   Annualized
Expense
Ratio
 
$ 1,000.00     $ 990.30     $ 2.47     $ 1,000.00     $ 1,022.40     $ 2.51     0.50 %

 

(a) Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 8 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR  
    Percent of  
Sector   Total Investments (a)
Information Technology     28.2 %
Consumer Staples     23.8  
Financials     11.2  
Industrials     10.6  
Materials     8.0  
Consumer Discretionary     7.2  
Health Care     6.7  
Communication Services     2.1  
Energy     1.4  
Real Estate     0.8  
TEN LARGEST HOLDINGS  
    Percent of  
Security   Total Investments (a)
ASML Holding NV     19.4 %
Unilever NV     12.7  
Koninklijke Philips NV     6.5  
ING Groep NV     6.0  
Prosus NV     4.7  
Koninklijke Ahold Delhaize NV     4.4  
NXP Semiconductors NV     4.4  
Heineken NV     3.6  
Wolters Kluwer NV     3.5  
Koninklijke DSM NV     3.5  


(a) Excludes money market funds.

 

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Fund Summary as of February 29, 2020 iShares® MSCI Sweden ETF

 

 

Investment Objective

 

The iShares MSCI Sweden ETF (the “Fund”) seeks to track the investment results of an index composed of Swedish equities, as represented by the MSCI Sweden 25/50 Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

 

Performance

 

        Average Annual Total Returns   Cumulative Total Returns
    6 Months     1 Year     5 Years     10 Years     1 Year     5 Years     10 Years  
Fund NAV   7.60 %   3.74 %   1.05 %   6.13 %   3.74 %   5.35 %   81.32 %
Fund Market   9.30     5.88     1.42     6.35     5.88     7.29     85.05  
Index   7.45     2.85     0.29     5.70     2.85     1.44     74.12  

 

Index performance through November 30, 2016 reflects the performance of the MSCI Sweden Index. Index performance beginning on December 1, 2016 reflects the performance of the MSCI Sweden 25/50 Index.

 

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 8 for more information.

 

Expense Example

  

Actual     Hypothetical 5% Return        
Beginning
Account Value
(09/01/19)
    Ending
Account Value
(02/29/20)
    Expenses
Paid During
the Period
(a)   Beginning
Account Value
(09/01/19)
    Ending
Account Value
(02/29/20)
    Expenses
Paid During
the
Period
(a)   Annualized
Expense
Ratio
 
$ 1,000.00     $ 1,076.00     $ 2.68     $ 1,000.00     $ 1,022.30     $ 2.61     0.52 %

 

(a) Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 8 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR  
    Percent of  
Sector   Total Investments (a)
Industrials     37.0 %
Financials     28.1  
Information Technology     10.5  
Consumer Staples     8.5  
Consumer Discretionary     6.5  
Communication Services     6.1  
Materials     1.7  
Energy     1.6  
TEN LARGEST HOLDINGS  
    Percent of  
Security   Total Investments (a)
Nordea Bank Abp     6.8 %
Telefonaktiebolaget LM Ericsson, Class B     6.6  
Volvo AB, Class B     6.4  
Atlas Copco AB, Class A     6.4  
Investor AB, Class B     6.1  
Assa Abloy AB, Class B     6.0  
Essity AB, Class B     4.5  
Sandvik AB     4.4  
Hennes & Mauritz AB, Class B     4.2  
Skandinaviska Enskilda Banken AB, Class A     4.1  

 

(a) Excludes money market funds.

 

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About Fund Performance

 

Past performance is no guarantee of future results. Financial markets have experienced extreme volatility and trading in many instruments has been disrupted. These circumstances may continue for an extended period of time, and may continue to affect adversely the value and liquidity of the fund’s investments. As a result, current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at iShares.com. Performance results assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. The investment return and principal value of shares will vary with changes in market conditions. Shares may be worth more or less than their original cost when they are redeemed or sold in the market. Performance for certain funds may reflect a waiver of a portion of investment advisory fees. Without such a waiver, performance would have been lower.

 

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

 

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

 

Shareholder Expenses

 

As a shareholder of your Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares and (2) ongoing costs, including management fees and other fund expenses. The expense example, which is based on an investment of $1,000 invested at the beginning of the period (or from the commencement of operations if less than 6 months) and held through the end of the period, is intended to help you understand your ongoing costs (in dollars and cents) of investing in your Fund and to compare these costs with the ongoing costs of investing in other funds.

 

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

 

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

 

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

 

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Schedule of Investments (unaudited) iShares® MSCI Austria ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
                 
Common Stocks                
                 
Aerospace & Defense — 0.8%                
FACC AG(a)     54,194     $ 529,812  
Air Freight & Logistics — 2.6%                
Oesterreichische Post AG     56,512       1,793,984  
Banks — 30.4%                
BAWAG Group AG(b)     73,502       3,156,865  
Erste Group Bank AG     418,020       14,248,167  
Raiffeisen Bank International AG     176,617       3,623,041  
              21,028,073  
Chemicals — 2.2%                
Lenzing AG     23,122       1,544,220  
Construction & Engineering — 0.9%                
Porr AG(a)     33,616       593,762  
Construction Materials — 4.3%                
Wienerberger AG     116,869       2,962,888  
Diversified Telecommunication Services — 3.0%                
Telekom Austria AG     273,174       2,055,465  
Electric Utilities — 7.8%                
EVN AG     67,147       1,118,165  
Verbund AG     90,989       4,285,721  
              5,403,886  
Electrical Equipment — 0.8%                
Zumtobel Group AG(c)     73,210       579,006  
Electronic Equipment, Instruments & Components — 1.9%                
AT&S Austria Technologie & Systemtechnik AG     51,853       897,656  
Kapsch TrafficCom AG     19,185       442,549  
              1,340,205  
Energy Equipment & Services — 1.3%                
Schoeller-Bleckmann Oilfield Equipment AG     22,975       935,026  
Food Products — 0.9%                
Agrana Beteiligungs AG     32,521       627,290  
Hotels, Restaurants & Leisure — 1.6%                
DO & CO AG     12,687       1,102,340  
Insurance — 5.0%                
UNIQA Insurance Group AG     204,888       1,831,982  
Vienna Insurance Group AG Wiener Versicherung Gruppe     66,146       1,598,477  
              3,430,459  
Security   Shares     Value  
Machinery — 6.3%            
ANDRITZ AG     89,712     $ 3,145,528  
Palfinger AG     29,635       734,060  
Semperit AG Holding(a)(c)     37,293       446,513  
              4,326,101  
Metals & Mining — 4.5%                
voestalpine AG     142,846       3,103,663  
Oil, Gas & Consumable Fuels — 12.2%                
OMV AG.     202,222       8,407,646  
Real Estate Management & Development — 11.9%                
CA Immobilien Anlagen AG     77,307       3,141,960  
IMMOFINANZ AG     119,145       3,049,383  
S IMMO AG     77,257       2,036,710  
              8,228,053  
Total Common Stocks — 98.4%                
(Cost: $86,976,770)             67,991,879  
                 
Short-Term Investments                
                 
Money Market Funds — 1.6%                
BlackRock Cash Funds: Institutional, SL Agency Shares, 1.74%(d)(e)(f)     1,066,637       1,067,384  
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52%(d)(e)     27,000       27,000  
              1,094,384  
Total Short-Term Investments — 1.6%                
(Cost: $1,093,944)             1,094,384  
                 
Total Investments in Securities — 100.0%                
(Cost: $88,070,714)             69,086,263  
                 
Other Assets, Less Liabilities — 0.0%             3,051  
Net Assets — 100.0%           $ 69,089,314  

 

(a) All or a portion of this security is on loan.

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

(c) Non-income producing security.

(d) Affiliate of the Fund.

(e) Annualized 7-day yield as of period-end.

(f) All or a portion of this security was purchased with cash collateral received from loaned securities.



S c h e d u l e  o f  I n v e s t m e n t s 9

 

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI Austria ETF
February 29, 2020  

 

Affiliates

 

Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940Act, were as follows:

 

Affiliated Issuer   Shares
Held at
08/31/19
    Net Activity     Shares
Held at
02/29/20
    Value at
02/29/20
    Income     Net Realized
Gain
(Loss)(a)
    Change in
Unrealized
Appreciation
(Depreciation)
 
BlackRock Cash Funds: Institutional, SL Agency Shares   1,211,200     (144,563 )   1,066,637     $ 1,067,384     $ 35,578 (b)   $ (53 )   $ 200  
BlackRock Cash Funds: Treasury, SL Agency Shares   24,000     3,000     27,000       27,000       287              
                      $ 1,094,384     $ 35,865     $ (53 )   $ 200  

 

(a) Includes realized capital gain distributions from an affiliated fund, if any.

(b) Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

 

Futures Contracts

 

Description   Number of
Contracts
    Expiration
Date
  Notional
Amount
(000)
    Value/
Unrealized
Appreciation
(Depreciation)
 
Long Contracts                            
Euro STOXX 50 Index     29     03/20/20   $ 1,056     $ (134,792 )

 

Derivative Financial Instruments Categorized by Risk Exposure

 

As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

    Equity  
    Contracts  
Liabilities — Derivative Financial Instruments        
Futures contracts        
Unrealized depreciation on futures contracts(a)   $ 134,792  

 

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

 

For the six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

    Equity  
    Contracts  
Net Realized Gain (Loss) from:        
Futures contracts   $ 156,162  
Net Change in Unrealized Appreciation (Depreciation) on:        
Futures contracts   $ (172,950 )

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:      
Average notional value of contracts — long   $ 1,148,087  

 

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

 

Fair Value Measurements

 

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

 

10 2 0 2 0   i  S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI Austria ETF
February 29, 2020  

 

Fair Value Measurements (continued)

 

The following table summarizes the value of the Fund's investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund's investments into major categories is disclosed in the Schedule of Investments above.

 

    Level 1     Level 2     Level 3     Total  
Investments                        
Assets                        
Common Stocks   $ 67,991,879     $     $     $ 67,991,879  
Money Market Funds     1,094,384                   1,094,384  
    $ 69,086,263     $     $     $ 69,086,263  
Derivative financial instruments(a)                                
Liabilities                                
Futures Contracts   $ (134,792 )   $     $     $ (134,792 )

 

(a) Shown at the unrealized appreciation (depreciation) on the contracts.

 

See notes to financial statements.

 

S c h e d u l e  o f  I n v e s t m e n t s 11

 

 

 

 

 

 

Schedule of Investments (unaudited) iShares® MSCI Belgium ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
                 
Common Stocks                
                 
Air Freight & Logistics — 0.6%                
bpost SA     26,900     $ 218,894  
Banks — 9.8%                
KBC Group NV     50,039       3,299,019  
Beverages — 20.1%                
Anheuser-Busch InBev SA/NV     121,906       6,793,133  
Biotechnology — 9.2%                
Argenx SE(a)     8,928       1,216,063  
Galapagos NV(a)(b)     9,119       1,876,139  
              3,092,202  
Capital Markets — 0.8%                
Gimv NV     4,942       282,827  
Chemicals — 9.6%                
Recticel SA     16,325       120,504  
Solvay SA     15,171       1,367,829  
Tessenderlo Group SA(a)     7,258       217,651  
Umicore SA(b)     36,860       1,529,264  
              3,235,248  
Construction & Engineering — 0.6%                
Cie. d'Entreprises CFE     2,170       189,022  
Distributors — 1.0%                
D'ieteren SA/NV     6,100       353,789  
Diversified Financial Services — 10.0%                
Ackermans & van Haaren NV     5,150       732,584  
Groupe Bruxelles Lambert SA     16,779       1,509,121  
KBC Ancora     9,225       393,168  
Sofina SA     3,391       727,089  
              3,361,962  
Diversified Telecommunication Services — 2.4%                
Proximus SADP     32,975       809,910  
Electric Utilities — 1.8%                
Elia Group SA/NV     6,180       611,636  
Electronic Equipment, Instruments & Components — 1.3%                
Barco NV     2,125       452,369  
Entertainment — 0.6%                
Kinepolis Group NV     4,162       218,529  
Equity Real Estate Investment Trusts (REITs) — 9.6%                
Aedifica SA     5,416       698,437  
Befimmo SA     5,704       304,819  
Cofinimmo SA     5,309       840,927  
Intervest Offices & Warehouses NV     6,238       174,044  
Montea CVA     2,875       268,749  
Retail Estates NV     2,571       202,489  
Warehouses De Pauw CVA     27,775       738,328  
              3,227,793  
Food & Staples Retailing — 1.7%                
Colruyt SA     12,479       573,250  
Health Care Equipment & Supplies — 0.6%                
Biocartis NV(a)(b)(c)     18,307       99,943  
Ion Beam Applications(a)(b)     9,539       92,889  
              192,832  
Security   Shares     Value  
                 
Health Care Providers & Services — 1.0%                
Fagron     15,497     $ 324,112  
Health Care Technology — 0.6%                
AGFA-Gevaert NV(a)     45,547       199,524  
Insurance — 4.3%                
Ageas     31,213       1,435,894  
IT Services — 0.4%                
Econocom Group SA/NV     50,321       139,956  
Media — 1.2%                
Telenet Group Holding NV     10,910       413,691  
Metals & Mining — 0.6%                
Bekaert SA     10,050       215,158  
Oil, Gas & Consumable Fuels — 1.4%                
Euronav NV     42,528       383,763  
Exmar NV(a)(b)     18,108       93,188  
              476,951  
Personal Products — 0.8%                
Ontex Group NV     18,256       272,725  
Pharmaceuticals — 7.4%                
Mithra Pharmaceuticals SA(a)(b)     5,475       133,270  
UCB SA     25,785       2,366,714  
              2,499,984  
Semiconductors & Semiconductor Equipment — 1.0%                
Melexis NV     4,976       340,525  
Textiles, Apparel & Luxury Goods — 0.6%                
Sioen Industries NV     4,455       90,629  
Van de Velde NV     3,645       98,495  
              189,124  
Wireless Telecommunication Services — 0.5%                
Orange Belgium SA     9,287       175,462  
Total Common Stocks — 99.5%                
(Cost: $43,737,545)             33,595,521  
                 
Short-Term Investments                
Money Market Funds — 9.2%                
                 
BlackRock Cash Funds: Institutional, SL Agency Shares, 1.74%(d)(e)(f)     3,090,195       3,092,358  
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52%(d)(e)     14,000       14,000  
              3,106,358  
Total Short-Term Investments — 9.2%                
(Cost: $3,105,853)             3,106,358  
                 
Total Investments in Securities — 108.7%                
(Cost: $46,843,398)             36,701,879  
                 
Other Assets, Less Liabilities — (8.7)%.             (2,930,242 )
Net Assets — 100.0%           $ 33,771,637  

 

(a) Non-income producing security.

(b) All or a portion of this 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.



 

12 2 0 2 0   i  S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI Belgium ETF
February 29, 2020

 

(d) Affiliate of the Fund.

(e) Annualized 7-day yield as of period-end.

(f) All or a portion of this security was purchased with cash collateral received from loaned securities.

 

Affiliates

 

Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940Act, were as follows:

 

Affiliated Issuer   Shares
Held at
08/31/19
    Net Activity     Shares
Held at
02/29/20
    Value at
02/29/20
    Income     Net Realized
Gain
(Loss)
(a)   Change in
Unrealized
Appreciation
(Depreciation)
 
BlackRock Cash Funds: Institutional, SL Agency Shares   1,699,780     1,390,415     3,090,195     $ 3,092,358     $ 20,013 (b)   $ 145     $ 89  
BlackRock Cash Funds: Treasury, SL Agency Shares   19,000     (5,000 )   14,000       14,000       192              
                      $ 3,106,358     $ 20,205     $ 145     $ 89  

 

(a) Includes realized capital gain distributions from an affiliated fund, if any.

(b) Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

 

Futures Contracts

 

Description     Number of
Contracts
      Expiration
Date
    Notional
Amount
(000)
    Value/
Unrealized
Appreciation
(Depreciation)
 
Long Contracts                        
Euro STOXX 50 Index     1       03/20/20     $ 36     $ (4,652 )

 

Derivative Financial Instruments Categorized by Risk Exposure

 

As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

    Equity  
    Contracts  
Liabilities — Derivative Financial Instruments        
Futures contracts        
Unrealized depreciation on futures contracts(a)   $ 4,652  

 

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

 

For the six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

    Equity  
    Contracts  
Net Realized Gain (Loss) from:        
Futures contracts   $ 3,078  
Net Change in Unrealized Appreciation (Depreciation) on:        
Futures contracts   $ (4,652 )

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments        

 

Futures contracts:        
Average notional value of contracts — long   $ 52,953  

 

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

 

S c h e d u l e   o f   I n v e s t m e n t s 13

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI Belgium ETF
February 29, 2020

 

Fair Value Measurements

 

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

 

The following table summarizes the value of the Fund's investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund's investments into major categories is disclosed in the Schedule of Investments above.

 

    Level 1     Level 2     Level 3     Total  
Investments                        
Assets                        
Common Stocks   $ 33,595,521     $     $     $ 33,595,521  
Money Market Funds     3,106,358                   3,106,358  
    $ 36,701,879     $     $     $ 36,701,879  
Derivative financial instruments(a)                                
Liabilities                                
Futures Contracts   $ (4,652 )   $     $     $ (4,652 )

 

(a) Shown at the unrealized appreciation (depreciation) on the contracts.

 

See notes to financial statements.

 

14 2 0 2 0   i  S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

 

 

Schedule of Investments (unaudited) iShares® MSCI France ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
                 
Common Stocks                
                 
Aerospace & Defense — 8.5%                
Airbus SE     319,716     $ 37,963,847  
Dassault Aviation SA     1,361       1,403,795  
Safran SA     179,189       24,426,615  
Thales SA     58,600       5,844,719  
              69,638,976  
Auto Components — 1.8%                
Cie. Generale des Etablissements Michelin SCA     93,808       9,916,894  
Faurecia SE     41,726       1,873,690  
Valeo SA     131,990       3,302,744  
              15,093,328  
Automobiles — 1.1%                
Peugeot SA     321,442       6,180,803  
Renault SA     105,725       3,076,959  
              9,257,762  
Banks — 6.1%                
BNP Paribas SA     616,050       29,629,305  
Credit Agricole SA     633,208       7,518,864  
Societe Generale SA     443,538       12,467,555  
              49,615,724  
Beverages — 2.4%                
Pernod Ricard SA     116,184       18,683,901  
Remy Cointreau SA     12,443       1,247,206  
              19,931,107  
Building Products — 1.1%                
Cie. de Saint-Gobain     269,087       9,340,281  
Capital Markets — 0.6%                
Amundi SA(a)     33,134       2,353,004  
Natixis SA     521,697       2,101,403  
              4,454,407  
Chemicals — 4.7%                
Air Liquide SA     259,161       34,986,596  
Arkema SA     37,819       3,533,585  
              38,520,181  
Construction & Engineering — 4.6%                
Bouygues SA     122,411       4,770,723  
Eiffage SA     42,827       4,535,915  
Vinci SA     281,856       28,167,829  
              37,474,467  
Diversified Financial Services — 0.4%                
Eurazeo SE     21,496       1,430,904  
Wendel SA     14,816       1,801,601  
              3,232,505  
Diversified Telecommunication Services — 1.9%                
Iliad SA     8,161       1,132,209  
Orange SA     1,093,972       14,648,396  
              15,780,605  
Electric Utilities — 0.6%                
Electricite de France SA     334,850       4,630,802  
Electrical Equipment — 5.0%                
Legrand SA     145,966       11,066,412  
Schneider Electric SE     302,913       30,112,488  
              41,178,900  
Electronic Equipment, Instruments & Components — 0.6%                
Ingenico Group SA     33,040       4,643,661  
Security   Shares     Value  
             
Entertainment — 2.1%            
Bollore SA     484,660     $ 1,652,491  
Ubisoft Entertainment SA(b)     49,539       3,666,556  
Vivendi SA     453,985       11,479,606  
              16,798,653  
Equity Real Estate Investment Trusts (REITs) — 2.6%                
Covivio     26,346       2,778,216  
Gecina SA     25,108       4,432,086  
ICADE     16,465       1,632,259  
Klepierre SA     108,011       3,205,778  
Unibail-Rodamco-Westfield.     75,804       9,076,090  
              21,124,429  
Food & Staples Retailing — 0.8%                
Carrefour SA     332,239       5,709,609  
Casino Guichard Perrachon SA(c)     29,143       1,126,506  
              6,836,115  
Food Products — 2.9%                
Danone SA     338,300       23,678,703  
Health Care Equipment & Supplies — 0.3%                
BioMerieux     22,402       2,051,032  
Hotels, Restaurants & Leisure — 1.0%                
Accor SA     96,339       3,457,255  
Sodexo SA     48,285       4,600,572  
              8,057,827  
Household Durables — 0.2%                
SEB SA     12,450       1,630,143  
Insurance — 3.5%                
AXA SA     1,058,583       24,366,477  
CNP Assurances     94,677       1,471,570  
SCOR SE     86,949       3,104,046  
              28,942,093  
IT Services — 3.1%                
Atos SE     53,714       3,970,843  
Capgemini SE     87,110       9,493,960  
Edenred     133,463       6,915,235  
Worldline SA(a)(b)     69,962       5,291,104  
              25,671,142  
Life Sciences Tools & Services — 0.7%                
Eurofins Scientific SE(c)     6,311       3,152,817  
Sartorius Stedim Biotech     15,247       2,875,642  
              6,028,459  
Machinery — 0.6%                
Alstom SA     104,602       5,111,902  
Media — 1.1%                
Eutelsat Communications SA     94,205       1,266,589  
JCDecaux SA     46,734       1,067,767  
Publicis Groupe SA     118,713       4,561,401  
SES SA     200,490       2,285,968  
              9,181,725  
Metals & Mining — 0.6%                
ArcelorMittal SA     364,793       5,143,472  
Multi-Utilities — 3.4%                
Engie SA     1,001,444       16,533,538  
Suez     187,713       2,944,440  


 

S c h e d u l e   o f   I n v e s t m e n t s 15

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI France ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Multi-Utilities (continued)                
Veolia Environnement SA     295,252 $     8,409,604  
              27,887,582  
Oil, Gas & Consumable Fuels — 6.8%                
TOTAL SA     1,314,951       55,436,358  
Personal Products — 4.4%                
L'Oreal SA     137,589       36,423,436  
Pharmaceuticals — 7.1%                
Ipsen SA     20,750       1,335,660  
Sanofi     617,842       56,960,633  
              58,296,293  
Professional Services — 1.4%                
Bureau Veritas SA     161,204       3,904,492  
Teleperformance     32,182       7,769,998  
              11,674,490  
Semiconductors & Semiconductor Equipment — 1.2%                
STMicroelectronics NV     373,805       10,022,892  
Software — 1.4%                
Dassault Systemes SE     71,967       11,225,402  
Textiles, Apparel & Luxury Goods — 14.4%                
EssilorLuxottica SA     155,482       21,024,144  
Hermes International     17,363       12,015,600  
Kering SA     41,501       23,057,783  
LVMH Moet Hennessy Louis Vuitton SE     152,304       62,042,565  
              118,140,092  
Transportation Infrastructure — 0.8%                
Aeroports de Paris     16,336       2,400,944  
Getlink SE     241,150       3,862,112  
              6,263,056  
Total Common Stocks — 99.8%                
(Cost: $962,853,410)           818,418,002  
Security   Shares     Value  
Short-Term Investments                
Money Market Funds — 0.6%                
BlackRock Cash Funds: Institutional, SL Agency Shares, 1.74%(d)(e)(f)     4,056,959     $ 4,059,799  
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52%(d)(e)     501,000       501,000  
              4,560,799  
Total Short-Term Investments — 0.6%                
(Cost: $4,559,593)             4,560,799  
                 
Total Investments in Securities — 100.4%                
(Cost: $967,413,003)             822,978,801  
                 
Other Assets, Less Liabilities — (0.4)%             (3,251,313 )
                 
Net Assets — 100.0%           $ 819,727,488  

  

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

(b) Non-income producing security.

(c) All or a portion of this security is on loan.
  (d) Affiliate of the Fund.

(e) Annualized 7-day yield as of period-end.

(f) All or a portion of this security was purchased with cash collateral received from loaned securities.



 

Affiliates

 

Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940Act, were as follows:

 

Affiliated Issuer   Shares
Held at
08/31/19
    Net Activity     Shares
Held at
02/29/20
    Value at
02/29/20
    Income     Net Realized
Gain
(Loss)
(a)   Change in
Unrealized
Appreciation
(Depreciation)
 
BlackRock Cash Funds: Institutional, SL Agency Shares   9,131,775     (5,074,816 )   4,056,959     $ 4,059,799     $ 136,231 (b)   $ 662     $ 835  
BlackRock Cash Funds: Treasury, SL Agency Shares   436,000     65,000     501,000       501,000       3,789              
                      $ 4,560,799     $ 140,020     $ 662     $ 835  

 

(a) Includes realized capital gain distributions from an affiliated fund, if any.

(b) Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

 

16 2 0 2 0   i  S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI France ETF
February 29, 2020

 

 

Futures Contracts

 

Description     Number of
Contracts
      Expiration
Date
    Notional
Amount
(000)
    Value/
Unrealized
Appreciation
(Depreciation)
 
Long Contracts                        
CAC 40 Index     20       03/20/20     $ 1,166     $ (165,258 )

 

Derivative Financial Instruments Categorized by Risk Exposure

 

As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

    Equity  
    Contracts  
Liabilities — Derivative Financial Instruments        
Futures contracts        
Unrealized depreciation on futures contracts(a)   $ 165,258  

 

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

 

For the six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

    Equity  
    Contracts  
Net Realized Gain (Loss) from:        
Futures contracts   $ 138,732  
Net Change in Unrealized Appreciation (Depreciation) on:        
Futures contracts   $ (219,265 )

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:      
Average notional value of contracts — long   $ 1,541,740  

 

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

 

Fair Value Measurements

 

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

 

The following table summarizes the value of the Fund's investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund's investments into major categories is disclosed in the Schedule of Investments above.

 

    Level 1     Level 2     Level 3     Total  
Investments                        
Assets                        
Common Stocks   $ 818,418,002     $     $     $ 818,418,002  
Money Market Funds     4,560,799                   4,560,799  
    $ 822,978,801     $     $     $ 822,978,801  
Derivative financial instruments(a)                                
Liabilities                                
Futures Contracts   $ (165,258 )   $     $     $ (165,258 )

 

(a) Shown at the unrealized appreciation (depreciation) on the contracts.

 

See notes to financial statements.

 

S c h e d u l e   o f   I n v e s t m e n t s 17

 

 

 

 

Schedule of Investments (unaudited) iShares® MSCI Netherlands ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Common Stocks                
Air Freight & Logistics — 0.2%                
PostNL NV     246,681 $     372,579  
Banks — 7.2%                
ABN AMRO Bank NV, CVA(a)     162,575       2,221,541  
ING Groep NV     1,342,478       12,695,214  
NIBC Holding NV(a)     23,744       252,731  
              15,169,486  
Beverages — 6.6%                
Coca-Cola European Partners PLC     87,363       4,452,018  
Heineken Holding NV     22,440       1,967,007  
Heineken NV     75,954       7,527,203  
              13,946,228  
Biotechnology — 0.2%                
Pharming Group NV(b)     318,656       391,856  
Capital Markets — 0.2%                
Flow Traders(a)     19,930       474,621  
Chemicals — 7.4%                
Akzo Nobel NV     83,211       6,594,733  
Corbion NV     29,286       1,058,367  
Koninklijke DSM NV     66,027       7,379,656  
OCI NV(b)     40,608       676,002  
              15,708,758  
Construction & Engineering — 1.2%                
Arcadis NV     38,583       877,297  
Boskalis Westminster(c)     40,540       881,494  
Koninklijke BAM Groep NV     144,244       389,140  
Koninklijke Volkerwessels NV     17,273       415,520  
              2,563,451  
Diversified Financial Services — 0.0%                
SRH NV(b)(c)(d)     68,952       1  
Diversified Telecommunication Services — 1.5%                
Koninklijke KPN NV     1,335,796       3,229,537  
Electrical Equipment — 1.3%                
Kendrion NV     13,982       278,296  
SIF Holding NV(c)     12,575       181,503  
Signify NV(a)     50,801       1,495,503  
TKH Group NV     19,630       883,203  
              2,838,505  
Energy Equipment & Services — 0.7%                
Fugro NV, CVA(b)(c)     43,976       347,412  
SBM Offshore NV     75,629       1,182,568  
              1,529,980  
Equity Real Estate Investment Trusts (REITs) — 0.9%                
Eurocommercial Properties NV     24,397       534,102  
NSI NV     12,198       612,999  
Vastned Retail NV     11,846       297,330  
Wereldhave NV(c)     21,756       345,324  
              1,789,755  
Food & Staples Retailing — 4.4%                
Koninklijke Ahold Delhaize NV     398,323       9,267,050  
Food Products — 0.1%                
ForFarmers NV     34,073       205,851  
Security   Shares     Value  
Health Care Equipment & Supplies — 6.5%                
Koninklijke Philips NV     320,367     $ 13,625,840  
Hotels, Restaurants & Leisure — 0.3%                
Basic-Fit NV(a)(b)     16,474       549,209  
Household Durables — 0.2%                
TomTom NV     39,560       396,785  
Insurance — 3.8%                
Aegon NV     690,958       2,330,835  
ASR Nederland NV     54,150       1,791,569  
NN Group NV     114,328       3,872,997  
              7,995,401  
Internet & Direct Marketing Retail — 6.5%                
Just Eat Takeaway(a)(b)     44,596       3,884,627  
Prosus NV(b)     140,020       9,792,759  
              13,677,386  
IT Services — 2.8%                
Adyen NV(a)(b)     3,915       3,428,303  
InterXion Holding NV(b)     28,888       2,452,302  
              5,880,605  
Leisure Products — 0.2%                
Accell Group NV     17,222       471,046  
Machinery — 0.7%                
Aalberts NV     41,214       1,527,913  
Media — 0.6%                
Altice Europe NV(b)     240,352       1,278,623  
Metals & Mining — 0.5%                
AMG Advanced Metallurgical Group NV(c)     16,849       388,663  
Constellium SE, Class A(b)     55,129       683,600  
              1,072,263  
Oil, Gas & Consumable Fuels — 0.7%                
Koninklijke Vopak NV     30,118       1,427,536  
Personal Products — 12.7%                
Unilever NV     512,274       26,793,303  
Professional Services — 5.0%                
Brunel International NV     22,596       185,161  
Intertrust NV(a)     36,598       611,458  
Randstad NV     47,011       2,412,068  
Wolters Kluwer NV     102,172       7,443,147  
              10,651,834  
Semiconductors & Semiconductor Equipment — 25.4%                
ASM International NV     19,794       2,281,898  
ASML Holding NV     149,672       40,789,415  
BE Semiconductor Industries NV     34,649       1,335,912  
NXP Semiconductors NV     80,565       9,159,435  
              53,566,660  
Trading Companies & Distributors — 2.0%                
AerCap Holdings NV(b)     48,748       2,538,796  
IMCD NV     21,868       1,776,345  
              4,315,141  
Total Common Stocks — 99.8%                
(Cost: $225,615,363)             210,717,203  


 

18 2 0 2 0   i  S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI Netherlands ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Short-Term Investments                
Money Market Funds — 0.8%                
BlackRock Cash Funds: Institutional, SL Agency Shares, 1.74%(e)(f)(g)     1,490,343     $ 1,491,386  
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52%(e)(f)     125,000       125,000  
              1,616,386  
Total Short-Term Investments — 0.8%                
(Cost: $1,615,937)             1,616,386  
                 
Total Investments in Securities — 100.6%                
(Cost: $227,231,300)             212,333,589  
Other Assets, Less Liabilities — (0.6)%             (1,249,688 )
                 
Net Assets — 100.0%           $ 211,083,901  
     
     
(a) Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

(b) Non-income producing security.

(c) All or a portion of this security is on loan.

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

(e) Affiliate of the Fund.

(f) Annualized 7-day yield as of period-end.

(g) All or a portion of this security was purchased with cash collateral received from loaned securities.



Affiliates

 

Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940Act, were as follows: 

 

Affiliated Issuer   Shares
Held at
08/31/19
    Net Activity     Shares
Held at
02/29/20
    Value at
02/29/20
    Income     Net Realized
Gain
(Loss)
(a)   Change in
Unrealized
Appreciation
(Depreciation)
 
BlackRock Cash Funds: Institutional, SL Agency Shares   2,182,420     (692,077 )   1,490,343     $ 1,491,386     $ 23,911 (b)   $ 133     $ 228  
BlackRock Cash Funds: Treasury, SL Agency Shares   102,000     23,000     125,000       125,000       751              
                      $ 1,616,386     $ 24,662     $ 133     $ 228  

 

(a) Includes realized capital gain distributions from an affiliated fund, if any.

(b) Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

 

Futures Contracts

 

Description     Number of
Contracts
      Expiration
Date
    Notional
Amount
(000)
    Value/
Unrealized
Appreciation
(Depreciation)
 
Long Contracts                        
Euro STOXX 50 Index     7       03/20/20     $ 255     $ (35,314 )

 

Derivative Financial Instruments Categorized by Risk Exposure

 

As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

    Equity  
    Contracts  
Liabilities — Derivative Financial Instruments        
Futures contracts        
Unrealized depreciation on futures contracts(a)   $ 35,314  

 

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

 

S c h e d u l e   o f   I n v e s t m e n t s 19

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI Netherlands ETF
February 29, 2020

 

 

For the six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

    Equity  
    Contracts  
Net Realized Gain (Loss) from:        
Futures contracts   $ 50,901  
Net Change in Unrealized Appreciation (Depreciation) on:        
Futures contracts   $ (51,382 )

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:      
Average notional value of contracts — long   $ 435,416  

 

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

 

Fair Value Measurements

 

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

 

The following table summarizes the value of the Fund's investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund's investments into major categories is disclosed in the Schedule of Investments above.

 

    Level 1     Level 2     Level 3     Total  
Investments                        
Assets                        
Common Stocks   $ 210,717,202     $     $ 1     $ 210,717,203  
Money Market Funds     1,616,386                   1,616,386  
    $ 212,333,588     $     $ 1     $ 212,333,589  
Derivative financial instruments(a)                                
Liabilities                                
Futures Contracts   $ (35,314 )   $     $     $ (35,314 )

 

(a) Shown at the unrealized appreciation (depreciation) on the contracts.

 

See notes to financial statements.

 

20 2 0 2 0   i  S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

 

 

Schedule of Investments (unaudited) iShares® MSCI Sweden ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Common Stocks                
Banks — 18.3%                
Nordea Bank Abp     1,912,908     $ 14,932,170  
Skandinaviska Enskilda Banken AB, Class A     952,092       8,979,721  
Svenska Handelsbanken AB, Class A     897,733       8,933,717  
Swedbank AB, Class A     528,289       7,887,472  
              40,733,080  
Building Products — 5.9%                
Assa Abloy AB, Class B     591,599       13,113,287  
Commercial Services & Supplies — 1.3%                
Securitas AB, Class B     214,244       2,881,602  
Communications Equipment — 6.4%                
Telefonaktiebolaget LM Ericsson, Class B     1,818,091       14,379,554  
Construction & Engineering — 2.1%                
Skanska AB, Class B     219,412       4,727,663  
Diversified Financial Services — 9.2%                
Industrivarden AB, Class C     119,036       2,655,721  
Investor AB, Class B     268,997       13,243,006  
Kinnevik AB, Class B     135,472       2,717,796  
L E Lundbergforetagen AB, Class B     45,575       1,866,229  
              20,482,752  
Diversified Telecommunication Services — 3.1%                
Telia Co. AB     1,770,627       6,927,198  
Electronic Equipment, Instruments & Components — 3.9%                
Hexagon AB, Class B     163,125       8,624,756  
Food & Staples Retailing — 1.0%                
ICA Gruppen AB     59,802       2,219,344  
Household Durables — 2.3%                
Electrolux AB, Series B     156,188       3,132,588  
Husqvarna AB, Class B     296,556       1,964,377  
              5,096,965  
Household Products — 4.4%                
Essity AB, Class B     330,823       9,813,689  
Machinery — 26.9%                
Alfa Laval AB     195,137       4,349,528  
Atlas Copco AB, Class A     396,799       13,878,613  
Security   Shares     Value  
Machinery (continued)                
Atlas Copco AB, Class B     226,963     $ 6,924,700  
Epiroc AB, Class A     391,847       4,468,101  
Epiroc AB, Class B     225,874       2,498,683  
Sandvik AB.     590,882       9,653,919  
SKF AB, Class B     247,336       4,285,922  
Volvo AB, Class B     911,031       13,982,467  
              60,041,933  
Metals & Mining — 1.6%                
Boliden AB     175,839       3,598,360  
Oil, Gas & Consumable Fuels — 1.6%                
Lundin Petroleum AB.     129,232       3,588,334  
Specialty Retail — 4.1%                
Hennes & Mauritz AB, Class B.     508,797       9,097,900  
Tobacco — 2.9%                
Swedish Match AB     110,809       6,395,882  
Wireless Telecommunication Services — 2.9%                
Millicom International Cellular SA, SDR     51,317       2,332,134  
Tele2 AB, Class B. .     285,809       4,110,949  
              6,443,083  
Total Common Stocks — 97.9%                
(Cost: $276,100,495)             218,165,382  
                 
Short-Term Investments                
Money Market Funds — 0.0%                
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52%(a)(b)     102,000       102,000  
Total Short-Term Investments — 0.0%                
(Cost: $102,000)             102,000  
Total Investments in Securities — 97.9%                
(Cost: $276,202,495)             218,267,382  
Other Assets, Less Liabilities — 2.1%             4,609,879  
Net Assets — 100.0%           $ 222,877,261  

 

(a) Affiliate of the Fund.

(b) Annualized 7-day yield as of period-end.

 



Affiliates

 

Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940Act, were as follows:

 

Affiliated Issuer   Shares
Held at
08/31/19
    Net Activity     Shares
Held at
02/29/20
    Value at
02/29/20
    Income     Net Realized
Gain
(Loss)
(a)   Change in
Unrealized
Appreciation
(Depreciation)
 
BlackRock Cash Funds: Institutional, SL Agency Shares               $     $ 364 (b)   $     $  
BlackRock Cash Funds: Treasury, SL Agency Shares   78,000     24,000     102,000       102,000       1,312              
                      $ 102,000     $ 1,676     $     $  

 

(a) Includes realized capital gain distributions from an affiliated fund, if any.

(b) Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

 

S c h e d u l e   o f   I n v e s t m e n t s 21

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI Sweden ETF
February 29, 2020

 

 

Futures Contracts

 

Description     Number of
Contracts
      Expiration
Date
    Notional
Amount
(000)
    Value/
Unrealized
Appreciation
(Depreciation)
 
Long Contracts                        
OMXS 30 Index     263       03/20/20     $ 4,534     $ (581,554 )

 

Forward Foreign Currency Exchange Contracts

 

                          Unrealized  
                          Appreciation  
Currency   Purchased   Currency Sold     Counterparty   Settlement Date   (Depreciation)  
                             
USD   878,179   EUR   786,934     SCB   03/20/20   $ 12,863  
USD   8,236,470   SEK   77,306,278     SCB   03/20/20.     256,266  
                            269,129  
SEK   1,784,216   USD   190,792     SCB   03/20/20     (6,611 )
           Net unrealized appreciation             $ 262,518  

 

Derivative Financial Instruments Categorized by Risk Exposure

 

As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

    Equity
Contracts
    Foreign
Currency
Exchange
Contracts
    Total  
Assets — Derivative Financial Instruments                        
Forward foreign currency exchange contracts                        
Unrealized appreciation on forward foreign currency exchange contracts   $     $ 269,129     $ 269,129  
Liabilities — Derivative Financial Instruments                        
Futures contracts                        
Unrealized depreciation on futures contracts(a)   $ 581,554     $     $ 581,554  
Forward foreign currency exchange contracts                        
Unrealized depreciation on forward foreign currency exchange contracts   $     $ 6,611     $ 6,611  
    $ 581,554     $ 6,611     $ 588,165  

 

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

 

For the six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

    Equity
Contracts
    Foreign
Currency
Exchange
Contracts
    Total  
Net Realized Gain (Loss) from:                        
Futures contracts   $ 1,017,660     $     $ 1,017,660  
Forward foreign currency exchange contracts           259,844       259,844  
    $ 1,017,660     $ 259,844     $ 1,277,504  
Net Change in Unrealized Appreciation (Depreciation) on:                        
Futures contracts   $ (749,215 )   $     $ (749,215 )
Forward foreign currency exchange contracts           (249,726 )     (249,726 )
    $ (749,215 )   $ (249,726 )   $ (998,941 )

 

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Schedule of Investments (unaudited) (continued) iShares® MSCI Sweden ETF
February 29, 2020

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

     
Futures contracts:      
Average notional value of contracts — long   $ 4,748,459  
Forward foreign currency exchange contracts:        
Average amounts purchased — in USD   $ 63,597  
Average amounts sold — in USD   $ 8,985,086  

 

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

 

Derivative Financial Instruments - Offsetting as of Period End

 

The Fund's derivative assets and liabilities (by type) were as follows:

 

    Assets     Liabilities  
Derivative Financial Instruments:                
Futures contracts   $     $ 581,554  
Forward foreign currency exchange contracts     269,129       6,611  
Total derivative assets and liabilities in the Statement of Assets and Liabilities   $ 269,129     $ 588,165  
Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”)           (581,554 )
Total derivative assets and liabilities subject to an MNA   $ 269,129     $ 6,611  

 

The following tables present the Fund’s derivative assets and liabilities by counterparty net of amounts available for offset under an MNA and net of the related collateral received and pledged by the Fund:

 

Counterparty   Derivative
Assets
Subject to
an MNA by
Counterparty
    Derivatives
Available
for Offset(a)
    Net Amount
of Derivative
Assets(b)
 
Standard Chartered Bank   $ 269,129     $ (6,611 )   $ 262,518  

 

Counterparty   Derivative
Liabilities
Subject to
an MNA by
Counterparty
    Derivatives
Available
for Offset(a)
    Net Amount
of Derivative
Liabilities
 
Standard Chartered Bank   $ 6,611     $ (6,611 )   $  

 

(a) The amount of derivatives available for offset is limited to the amount of derivatives assets and/or liabilities that are subject to an MNA.
(b) Net amount represents the net amount receivable from the counterparty in the event of default.

 

Fair Value Measurements

 

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

 

S c h e d u l e   o f   I n v e s t m e n t s 23

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI Sweden ETF
February 29, 2020

  

Fair Value Measurements (continued)

 

The following table summarizes the value of the Fund's investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund's investments into major categories is disclosed in the Schedule of Investments above.

 

    Level 1     Level 2     Level 3     Total  
Investments                                
Assets                                
Common Stocks   $ 218,165,382     $     $     $ 218,165,382  
Money Market Funds     102,000                   102,000  
    $ 218,267,382     $     $     $ 218,267,382  
Assets                                
Forward Foreign Currency Exchange Contracts   $     $ 269,129     $     $ 269,129  
Liabilities                                
Forward Foreign Currency Exchange Contracts           (6,611 )           (6,611 )
Futures Contracts     (581,554 )                 (581,554 )
    $ (581,554 )   $ 262,518     $     $ (319,036 )

  

(a) Shown at the unrealized appreciation (depreciation) on the contracts.

 

See notes to financial statements.

 

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Statements of Assets and Liabilities (unaudited) 

February 29, 2020

 

    iShares
MSCI Austria
ETF
    iShares
MSCI
Belgium ETF
    iShares
MSCI France
ETF
    iShares
MSCI
Netherlands
ETF
 
ASSETS                                
Investments in securities, at value (including securities on loan) (a):                                
Unaffiliated (b)   $ 67,991,879     $ 33,595,521     $ 818,418,002     $ 210,717,203  
Affiliated (c)     1,094,384       3,106,358       4,560,799       1,616,386  
Cash     719       951       73       14,396  
Foreign currency, at value(d)           19,022       1,234,129       79,978  
Foreign currency collateral pledged:                                
Futures contracts(e)     77,990       3,296       91,172       19,772  
Receivables:                                
Investments sold     2,811,449       878,566       596,816       1,510,449  
Securities lending income — Affiliated     8,048       1,987       6,158       4,044  
Capital shares sold                       247,602  
Dividends     40       21       796       182,453  
Tax reclaims     1,074,413       39,423              
Total assets     73,058,922       37,645,145       824,907,945       214,392,283  
                                 
LIABILITIES                                
Foreign bank overdraft(f)     7,158                    
Collateral on securities loaned, at value     1,067,537       3,089,904       4,060,067       1,488,219  
Payables:                                
Investments purchased     2,818,719       756,688       743,239       1,724,035  
Variation margin on futures contracts     46,126       1,596       49,839       11,164  
Capital shares redeemed           8,363              
Investment advisory fees     30,068       16,957       327,312       84,964  
Total liabilities     3,969,608       3,873,508       5,180,457       3,308,382  
                                 
NET ASSETS   $ 69,089,314     $ 33,771,637     $ 819,727,488     $ 211,083,901  
                                 
NET ASSETS CONSIST OF:                                
Paid-in capital   $ 128,500,301     $ 60,317,624     $ 945,024,178     $ 244,386,580  
Accumulated loss     (59,410,987 )     (26,545,987 )     (125,296,690 )     (33,302,679 )
NET ASSETS   $ 69,089,314     $ 33,771,637     $ 819,727,488     $ 211,083,901  
                                 
Shares outstanding     3,850,000       2,000,000       28,600,000       7,000,000  
Net asset value   $ 17.95     $ 16.89     $ 28.66     $ 30.15  
Shares authorized     100 million       136.2 million       340.2 million       255 million  
Par value   $ 0.001     $ 0.001     $ 0.001     $ 0.001  
                                 
(a) Securities loaned, at value   $ 991,067     $ 2,309,687     $ 3,853,021     $ 1,358,059  
(b)  Investments, at cost — Unaffiliated   $ 86,976,770     $ 43,737,545     $ 962,853,410     $ 225,615,363  
(c)  Investments, at cost — Affiliated   $ 1,093,944     $ 3,105,853     $ 4,559,593     $ 1,615,937  
(d)  Foreign currency, at cost   $     $ 19,004     $ 1,242,511     $ 79,604  
(e)  Foreign currency collateral pledged, at cost   $ 79,132     $ 3,328     $ 91,654     $ 19,748  
(f)  Foreign bank overdraft, at cost   $ 7,742     $     $     $  

 

See notes to financial statements.

 

F i n a n c i a l  S t a t e m e n t s 25

 

 

 

 

Statements of Assets and Liabilities (unaudited) (continued) 

February 29, 2020

 

      iShares
MSCI
Sweden ETF
 
         
ASSETS        
Investments in securities, at value:        
Unaffiliated(a)   $ 218,165,382  
Affiliated(b)     102,000  
Cash     322  
Foreign currency, at value(c)     411,954  
Foreign currency collateral pledged:        
Futures contracts(d)     435,561  
Receivables:        
Investments sold     539,556  
Dividends     475  
Tax reclaims     409,575  
Foreign withholding tax claims     13,943,022  
Unrealized appreciation on:        
Forward foreign currency exchange contracts     269,129  
Total assets     234,276,976  
         
LIABILITIES        
Payables:        
Investments purchased.     769,701  
Variation margin on futures contracts     3 19,639  
Investment advisory fees.     95,533  
Professional fees.     1,434,302  
IRS compliance fee for foreign withholding tax claims     8,773,929  
Unrealized depreciation on:        
Forward foreign currency exchange contracts     6,611  
Total liabilities.     11,399,715  
         
NET ASSETS   $ 222,877,261  
         
NET ASSETS CONSIST OF:        
Paid-in capital.     $313,081,100  
Accumulated loss.     (90,203,839 )
NET ASSETS   $ 222,877,261  
         
Shares outstanding.     7,425,000  
Net asset value.   $ 30.02  
Shares authorized.     63.6 million  
Par value.   $ 0001  
         
(a)  Investments, at cost — Unaffiliated   $ 276,100,495  
(b)  Investments, at cost — Affiliated   $ 102,000  
(c)  Foreign currency, at cost.   $ 369,667  
(d)  Foreign currency collateral pledged, at cost   $ 440,034  

 

See notes to financial statements.

 

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Statements of Operations (unaudited) 

Six Months Ended February 29, 2020

 

                      iShares  
    iShares     iShares     iShares     MSCI  
    MSCI Austria     MSCI     MSCI France     Netherlands  
    ETF     Belgium ETF     ETF     ETF  
INVESTMENT INCOME                                
Dividends — Unaffiliated   $ 51,979     $ 330,483     $ 4,444,663     $ 802,310  
Dividends — Affiliated     287       192       3,789       751  
Securities lending income — Affiliated — net     35,578       20,013       136,231       23,911  
Foreign taxes withheld     (7,918 )     (49,610 )     (657,207 )     (113,422 )
Total investment income     79,926       301,078       3,927,476       713,550  
                                 
EXPENSES                                
Investment advisory fees     170,463       122,205       2,528,510       450,006  
Total expenses     170,463       122,205       2,528,510       450,006  
Net investment income (loss)     (90,537 )     178,873       1,398,966       263,544  
                                 
REALIZED AND UNREALIZED GAIN (LOSS)                                
Net realized gain (loss) from:                                
Investments — Unaffiliated     (1,681,631 )     (1,275,603 )     (3,229,566 )     (2,251,228 )
Investments — Affiliated     (53 )     145       662       133  
In-kind redemptions — Unaffiliated     101,872       1,482,020       69,580,494       3,316,416  
Futures contracts     156,162       3,078       138,732       50,901  
Foreign currency transactions     (382 )     (425 )     (9,221 )     (9,206 )
Net realized gain (loss)     (1,424,032 )     209,215       66,481,101       1,107,016  
Net change in unrealized appreciation (depreciation) on:                                
Investments — Unaffiliated     (3,375,196 )     (2,509,325 )     (68,718,944 )     (8,102,181 )
Investments — Affiliated     200       89       835       228  
Futures contracts     (172,950 )     (4,652 )     (219,265 )     (51,382 )
Foreign currency translations     (1,613 )     288       10,180       9,058  
Net change in unrealized appreciation (depreciation)     (3,549,559 )     (2,513,600 )     (68,927,194 )     (8,144,277 )
Net realized and unrealized loss     (4,973,591 )     (2,304,385 )     (2,446,093 )     (7,037,261 )
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS   $ (5,064,128 )   $ (2,125,512 )   $ (1,047,127 )   $ (6,773,717 )

 

See notes to financial statements.

 

F i n a n c i a l  S t a t e m e n t s 27

 

 

 

Statements of Operations (unaudited) (continued) 

Six Months Ended February 29, 2020

  

    iShares
MSCI
Sweden ETF
 
INVESTMENT INCOME      
Dividends — Unaffiliated.   $ 1,135,382  
Dividends — Affiliated.     1,312  
Non-cash dividends — Unaffiliated     699,737  
Securities lending income — Affiliated — net     364  
Foreign taxes withheld.     (16,903 )
Foreign withholding tax claims.     226,240  
Total investment income.     2,046,132  
         
EXPENSES        
Investment advisory fees.     550,538  
Professional fees.     22,624  
Total expenses.     573,162  
Net investment income     1,472,970  
         
REALIZED AND UNREALIZED GAIN (LOSS)        
Net realized gain (loss) from:        
Investments — Unaffiliated     (322,646 )
In-kind redemptions — Unaffiliated     72,639  
Futures contracts     1,017,660  
Forward foreign currency exchange contracts     259,844  
Foreign currency transactions     26,076  
Net realized gain     1,053,573  
Net change in unrealized appreciation (depreciation) on:        
Investments — Unaffiliated     11,827,150  
Futures contracts     (749,215 )
Forward foreign currency exchange contracts     (249,726 )
Foreign currency translations     138,184  
Net change in unrealized appreciation (depreciation)     10,966,393  
Net realized and unrealized gain     12,019,966  
NET INCREASE IN NETASSETS RESULTING FROM OPERATIONS   $ 13,492,936  

 

See notes to financial statements.

  

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Statements of Changes in Net Assets

 

    iShares
MSCI Austria ETF
    iShares 
MSCI Belgium ETF
 
                             
      Six Months               Six Months          
      Ended               Ended          
      02/29/20       Year Ended       02/29/20       Year Ended  
      (unaudited)       08/31/19       (unaudited)       08/31/19  
                                 
INCREASE (DECREASE) IN NET ASSETS                                
                                 
OPERATIONS                                
Net investment income (loss)   $ (90,537 )   $ 1,991,632     $ 178,873     $ 1,205,284  
Net realized gain (loss)     (1,424,032 )     (14,361,944 )     209,215       (1,884,910 )
Net change in unrealized appreciation (depreciation)     (3,549,559 )     (6,282,218 )     (2,513,600 )     (1,629,193 )
Net decrease in net assets resulting from operations     (5,064,128 )     (18,652,530 )     (2,125,512 )     (2,308,819 )
                                 
DISTRIBUTIONS TO SHAREHOLDERS(a)                                
Decrease in net assets resulting from distributions to shareholders     (418,122 )     (2,792,866 )     (543,193 )     (1,172,255 )
                                 
CAPITAL SHARE TRANSACTIONS                                
Net increase (decrease) in net assets derived from capital share transactions     19,804,617       (70,251,096 )     (10,864,972 )     (9,116,599 )
                                 
NET ASSETS                                
Total increase (decrease) in net assets     14,322,367       (91,696,492 )     (13,533,677 )     (12,597,673 )
Beginning of period     54,766,947       146,463,439       47,305,314       59,902,987  
End of period   $ 69,089,314     $ 54,766,947     $ 33,771,637     $ 47,305,314  

 

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

 

See notes to financial statements.

 

F i n a n c i a l  S t a t e m e n t s 29

 

 

 

 

Statements of Changes in Net Assets (continued)

 

      iShares
MSCI France ETF
      iShares
MSCI Netherlands ETF
 
      Six Months Ended               Six Months Ended          
      02/29/20       Year Ended       02/29/20       Year Ended  
      (unaudited)       08/31/19       (unaudited)       08/31/19  
                                 
INCREASE (DECREASE) IN NET ASSETS                                
                                 
OPERATIONS                                
Net investment income   $ 1,398,966     $ 23,186,901     $ 263,544     $ 4,692,606  
Net realized gain     66,481,101       19,210,568       1,107,016       12,102,764  
Net change in unrealized appreciation (depreciation)     (68,927,194 )     (81,679,760 )     (8,144,277 )     (9,530,024 )
Net increase (decrease) in net assets resulting from operations     (1,047,127 )     (39,282,291 )     (6,773,717 )     7,265,346  
                                 
DISTRIBUTIONS TO SHAREHOLDERS(a)                                
Decrease in net assets resulting from distributions to shareholders     (1,712,762 )     (22,272,214 )     (782,943 )     (4,709,077 )
                                 
CAPITAL SHARE TRANSACTIONS                                
Net increase (decrease) in net assets derived from capital share transactions     (306,712,691 )     251,536,596       85,598,170       1,318,549  
                                 
NET ASSETS                                
Total increase (decrease) in net assets     (309,472,580 )     189,982,091       78,041,510       3,874,818  
Beginning of period     1,129,200,068       939,217,977       133,042,391       129,167,573  
End of period   $ 819,727,488     $ 1,129,200,068     $ 211,083,901     $ 133,042,391  

 

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

 

See notes to financial statements.

 

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Statements of Changes in Net Assets (continued)

 

      iShares 
MSCI Sweden ETF
 
      Six Months          
      Ended          
      02/29/20       Year Ended  
      (unaudited)       08/31/19  
                 
INCREASE (DECREASE) IN NET ASSETS                
                 
OPERATIONS                
Net investment income   $ 1,472,970     $ 7,235,753  
Net realized gain (loss)     1,053,573       (6,956,310 )
Net change in unrealized appreciation (depreciation)     10,966,393       (21,010,780 )
Net increase (decrease) in net assets resulting from operations     13,492,936       (20,731,337 )
                 
DISTRIBUTIONS TO SHAREHOLDERS(a)                
Decrease in net assets resulting from distributions to shareholders     (2,836,934 )     (7,255,549 )
                 
CAPITAL SHARE TRANSACTIONS                
Net increase (decrease) in net assets derived from capital share transactions     6,705,453       (14,965,695 )
                 
NET ASSETS                
Total increase (decrease) in net assets     17,361,455       (42,952,581 )
Beginning of period     205,515,806       248,468,387  
End of period   $ 222,877,261     $ 205,515,806  

 

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

 

See notes to financial statements.

 

F i n a n c i a l  S t a t e m e n t s 31

 

 

 

 

Financial Highlights 

(For a share outstanding throughout each period)

 

      iShares MSCI Austria ETF  
      Six Months Ended                                          
      02/29/20       Year Ended       Year Ended       Year Ended       Year Ended       Year Ended  
      (unaudited)       08/31/19       08/31/18       08/31/17       08/31/16       08/31/15  
                                                 
Net asset value, beginning of period   $ 18.89     $ 22.88     $ 22.87     $ 15.58     $ 15.59     $ 17.55  
Net investment income (loss)(a)     (0.03 )     0.48       0.58       0.53       0.38       0.25  
Net realized and unrealized gain (loss)(b)     (0.79 )     (3.69 )     0.11       7.13       (0.06 )     (1.96 )
Net increase (decrease) from investment operations     (0.82 )     (3.21 )     0.69       7.66       0.32       (1.71 )
                                                 
Distributions(c)                                                
From net investment income     (0.12 )     (0.78 )     (0.68 )     (0.37 )     (0.33 )     (0.25 )
Total distributions     (0.12 )     (0.78 )     (0.68 )     (0.37 )     (0.33 )     (0.25 )
                                                 
Net asset value, end of period   $ 17.95     $ 18.89     $ 22.88     $ 22.87     $ 15.58     $ 15.59  
                                                 
Total Return                                                
Based on net asset value     (4.50 )%(d)     (14.07 )%     3.03 %     49.52 %     2.11 %     (9.76 )%
                                                 
Ratios to Average Net Assets                                                
Total expenses     0.50 %(e)     0.49 %     0.47 %     0.49 %     0.48 %     0.48 %
Net investment income (loss)     (0.26 )%(e)     2.34 %     2.37 %     2.75 %     2.47 %     1.54 %
                                                 
Supplemental Data                                                
Net assets, end of period (000)   $ 69,089     $ 54,767     $ 146,463     $ 233,322     $ 60,780     $ 56,130  
Portfolio turnover rate(f)     8 %(d)     17 %     19 %     18 %     15 %     18 %

 

(a) Based on average shares outstanding.
(b) The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.
(c) Distributions for annual periods determined in accordance with U.S. federal income tax regulations.
(d) Not annualized.
(e) Annualized.
(f) Portfolio turnover rate excludes in-kind transactions.

 

See notes to financial statements.

 

32 2 0 2 0   i  S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

  

 

 

 

Financial Highlights (continued) 

(For a share outstanding throughout each period)

 

      iShares MSCI Belgium ETF  
      Six Months Ended                                          
      02/29/20       Year Ended       Year Ended       Year Ended       Year Ended       Year Ended  
      (unaudited)       08/31/19       08/31/18       08/31/17       08/31/16       08/31/15  
                                                 
Net asset value, beginning of period   $ 18.48     $ 19.70     $ 20.59     $ 18.16     $ 17.00     $ 17.02  
Net investment income(a)     0.07       0.44       0.50       0.43       0.34       0.34  
Net realized and unrealized gain (loss)(b)      (1.45 )     (1.22 )     (0.77 )     2.51       1.05       (0.00 )(c)
Net increase (decrease) from investment operations     (1.38 )     (0.78 )     (0.27 )     2.94       1.39       0.34  
                                                 
Distributions(d)                                                
From net investment income     (0.21 )     (0.44 )     (0.62 )     (0.51 )     (0.23 )     (0.36 )
Total distributions     (0.21 )     (0.44 )     (0.62 )     (0.51 )     (0.23 )     (0.36 )
                                                 
Net asset value, end of period   $ 16.89     $ 18.48     $ 19.70     $ 20.59     $ 18.16     $ 17.00  
                                                 
Total Return                                                
Based on net asset value     (7.65 )%(e)     (3.80 )%     (1.34 )%     16.44 %     8.20 %     1.95 %
                                                 
Ratios to Average Net Assets                                                
Total expenses     0.50 %(f)     0.49 %     0.47 %     0.49 %     0.48 %     0.48 %
Net investment income     0.73 %(f)     2.43 %     2.40 %     2.31 %     1.92 %     2.01 %
                                                 
Supplemental Data                                                
Net assets, end of period (000)   $ 33,772     $ 47,305     $ 59,903     $ 74,128     $ 132,203     $ 153,659  
Portfolio turnover rate(g)     9 %(e)     11 %     13 %     8 %     19 %     7 %

 

(a) Based on average shares outstanding.
(b) The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.
(c) Rounds to less than $0.01.
(d) Distributions for annual periods determined in accordance with U.S. federal income tax regulations.
(e) Not annualized.
(f) Annualized.
(g) Portfolio turnover rate excludes in-kind transactions.

 

See notes to financial statements.

 

F i n a n c i a l  H i g h l i g h t s 33

 

 

 

 

Financial Highlights (continued) 

(For a share outstanding throughout each period) 

 

    iShares MSCI France ETF  
    Six Months Ended                                          
      02/29/20       Year Ended       Year Ended       Year Ended       Year Ended       Year Ended  
      (unaudited)       08/31/19       08/31/18       08/31/17       08/31/16       08/31/15  
                                                 
Net asset value, beginning of period   $ 29.41     $ 31.10     $ 29.64     $ 23.84     $ 25.01     $ 27.64  
Net investment income(a)     0.04       0.83       0.80       0.69       0.67       0.74  
Net realized and unrealized gain (loss)(b)     (0.72 )     (1.67 )     1.40       5.69       (1.14 )     (2.69 )
Net increase (decrease) from investment operations     (0.68 )     (0.84 )     2.20       6.38       (0.47 )     (1.95 )
                                                 
Distributions(c)                                                
From net investment income     (0.07 )     (0.85 )     (0.74 )     (0.58 )     (0.70 )     (0.68 )
Total distributions     (0.07 )     (0.85 )     (0.74 )     (0.58 )     (0.70 )     (0.68 )
                                                 
Net asset value, end of period   $ 28.66     $ 29.41     $ 31.10     $ 29.64     $ 23.84     $ 25.01  
                                                 
Total Return                                                
Based on net asset value     (2.34 )%(d)     (2.64 )%     7.46 %     26.93 %     (1.87 )%     (7.17 )%
                                                 
Ratios to Average Net Assets                                                
Total expenses     0.50 %(e)     0.50 %     0.47 %     0.49 %     0.48 %     0.48 %
Net investment income     0.28 %(e)     2.84 %     2.53 %     2.57 %     2.77 %     2.85 %
                                                 
Supplemental Data                                                
Net assets, end of period (000)   $ 819,727     $ 1,129,200     $ 939,218     $ 640,201     $ 329,054     $ 350,139  
Portfolio turnover rate(f)     1 %(d)     2 %     4 %     6 %     6 %     6 %

 

(a) Based on average shares outstanding.
(b) The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.
(c) Distributions for annual periods determined in accordance with U.S. federal income tax regulations.
(d) Not annualized.
(e) Annualized.
(f) Portfolio turnover rate excludes in-kind transactions.

 

See notes to financial statements.

 

34 2 0 2 0   i  S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

  

 

 

Financial Highlights (continued) 

(For a share outstanding throughout each period)

 

 

    iShares MSCI Netherlands ETF  
      Six Months 
Ended 

02/29/20
      Year Ended       Year Ended       Year Ended       Year Ended       Year Ended  
      (unaudited)       08/31/19       08/31/18       08/31/17       08/31/16       08/31/15  
                                                 
Net asset value, beginning of period   $ 30.58     $ 31.12     $ 30.56     $ 24.78     $ 24.48     $ 24.64  
Net investment income(a)     0.05       0.88       0.62       0.46       0.71       0.50  
Net realized and unrealized gain (loss)(b)     (0.34 )     (0.56 )     0.62       5.98       0.08       (0.27 )
Net increase (decrease) from investment operations     (0.29 )     0.32       1.24       6.44       0.79       0.23  
                                                 
Distributions(c)                                                
From net investment income     (0.14 )     (0.86 )     (0.68 )     (0.66 )     (0.49 )     (0.39 )
Total distributions     (0.14 )     (0.86 )     (0.68 )     (0.66 )     (0.49 )     (0.39 )
                                                 
Net asset value, end of period   $ 30.15     $ 30.58     $ 31.12     $ 30.56     $ 24.78     $ 24.48  
                                                 
Total Return                                                
Based on net asset value     (0.97 )%(d)     1.16 %     4.08 %     26.44 %     3.32 %     0.87 %
                                                 
Ratios to Average Net Assets                                                
Total expenses     0.50 %(e)     0.50 %     0.47 %     0.49 %     0.48 %     0.48 %
Net investment income     0.29 %(e)     2.97 %     1.95 %     1.74 %     2.97 %     2.01 %
                                                 
Supplemental Data                                                
Net assets, end of period (000)   $ 211,084     $ 133,042     $ 129,168     $ 192,540     $ 184,587     $ 176,282  
Portfolio turnover rate(f)     8 %(d)     13 %     7 %     14 %     24 %     6 %

 

(a) Based on average shares outstanding.
(b) The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.
(c) Distributions for annual periods determined in accordance with U.S. federal income tax regulations.
(d) Not annualized.
(e) Annualized.
(f) Portfolio turnover rate excludes in-kind transactions.

 

See notes to financial statements.

 

F i n a n c i a l  H i g h l i g h t s 35

 

 

 

 

Financial Highlights (continued) 

(For a share outstanding throughout each period)

 

      iShares MSCI Sweden ETF  
      Six Months
Ended
                                         
      02/29/20       Year Ended       Year Ended       Year Ended       Year Ended       Year Ended  
      (unaudited)       08/31/19       08/31/18       08/31/17       08/31/16       08/31/15  
                                                 
Net asset value, beginning of period   $ 28.25     $ 31.85     $ 34.68     $ 28.54     $ 30.26     $ 34.11  
Net investment income(a)     0.21       0.95       1.14       0.86       1.05       1.30 (b)
Net realized and unrealized gain (loss)(c)     1.98       (3.58 )     (2.19 )     6.04       (1.63 )     (3.75 )
Net increase (decrease) from investment operations     2.19       (2.63 )     (1.05 )     6.90       (0.58 )     (2.45 )
                                                 
Distributions(d)                                                
From net investment income     (0.42 )     (0.97 )     (1.78 )     (0.76 )     (1.14 )     (1.40 )
Total distributions     (0.42 )     (0.97 )     (1.78 )     (0.76 )     (1.14 )     (1.40 )
Net asset value, end of period   $ 30.02     $ 28.25     $ 31.85     $ 34.68     $ 28.54     $ 30.26  
                                                 
Total Return                                                
Based on net asset value     7.60 %(e)     (8.41 )%     (2.88 )%     24.30 %     (1.91 )%     (7.46 )%(b)
                                                 
Ratios to Average Net Assets                                                
Total expenses     0.52 %(f)     0.55 %     0.53 %     0.53 %     0.48 %     0.92 %
Total expenses excluding professional fees for foreign withholding tax claims     0.50 %(f)     0.49 %     0.47 %     0.49 %     0.48 %     0.48 %
Net investment income     1.34 %(f)     3.16 %     3.34 %     2.74 %     3.65 %     3.97 %(b)
                                                 
Supplemental Data                                                
Net assets, end of period (000)   $ 222,877     $ 205,516     $ 248,468     $ 460,315     $ 284,709     $ 331,387  
Portfolio turnover rate(g)     2 %(e)     4 %     5 %     9 %     7 %     4 %

 

(a) Based on average shares outstanding.
(b) Reflects the one-time, positive effect of foreign withholding tax claims, net of the associated professional fees, which resulted in the following increases for the year ended August 31, 2015:
  ● Net investment income per share by $0.42.
  ● Total return by 1.14%.
  ● Ratio of net investment income to average net assets by 1.31%.
(c) The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.
(d) Distributions for annual periods determined in accordance with U.S. federal income tax regulations.
(e) Not annualized.
(f) Annualized.
(g) Portfolio turnover rate excludes in-kind transactions.

 

See notes to financial statements.

 

36 2 0 2 0   i  S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

  

 

 

 

Notes to Financial Statements (unaudited)

 

1. ORGANIZATION

 

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

 

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

 

      Diversification  
iShares ETF     Classification  
MSCI Austria     Non-diversified  
MSCI Belgium     Non-diversified  
MSCI France     Non-diversified  
MSCI Netherlands     Non-diversified  
MSCI Sweden     Non-diversified  

 

2. SIGNIFICANT ACCOUNTING POLICIES

 

The following significant accounting policies are consistently followed by each Fund in the preparation of its financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies.

 

Investment Transactions and Income Recognition: Investment transactions are accounted for on trade date. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recognized on the ex-dividend date, net of any foreign taxes withheld at source. Any taxes withheld that are reclaimable from foreign tax authorities are reflected in tax reclaims receivable. Distributions received by the Funds may include a return of capital that is estimated by management. Such amounts are recorded as a reduction of the cost of investments or reclassified to capital gains. Upon notification from issuers, some of the dividend income received from a real estate investment trust may be re-designated as a return of capital or capital gain. Non-cash dividends, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Interest income is accrued daily.

 

Foreign Currency Translation: The accounting records of the Funds are maintained in U.S. dollars. Foreign currencies, as well as investment securities and other assets and liabilities denominated in non-U.S. currencies are translated to U.S. dollars using prevailing market rates as quoted by one or more data service providers. Purchases and sales of investments, income receipts and expense payments are translated into U.S. dollars on the respective dates of such transactions.

 

Each Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of investments. Such fluctuations are reflected by the Funds as a component of net realized and unrealized gain (loss) from investments for financial reporting purposes. Each Fund reports realized currency gain (loss) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for U.S. federal income tax purposes.

 

Foreign Taxes: The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which each Fund invests. These foreign taxes, if any, are paid by each Fund and are reflected in its statement of operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of February 29, 2020, if any, are disclosed in the statement of assets and liabilities.

 

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

 

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

 

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

 

N o t e s  t o  F i n a n c i a l  S t a t e m e n t s 37

 

 

 

 

Notes to Financial Statements (unaudited) (continued)

 

3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

 

Investment Valuation Policies: Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date should the reporting period end on a day that the Fund’s listing exchange is not open. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. A fund determines the fair value of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Directors of the Company (the “Board”). The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.

 

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

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

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

Futures contract notional values are determined based on that day’s last reported settlement price on the exchange where the contract is traded.

Forward foreign currency exchange contracts are valued based on that day’s prevailing forward exchange rate for the underlying currencies. Interpolated values are derived when the settlement date of the contract is an interim date for which quotations are not available.

 

If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of an investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with policies approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee include market approach, income approach and the cost approach. Valuation techniques used under these approaches take into consideration inputs that include but are not limited to (i) attributes specific to the investment; (ii) the principal market for the investment; (iii) the customary participants in the principal market for the investment; (iv) data assumptions by market participants for the investment, if reasonably available; (v) quoted prices for similar investments in active markets; and (vi) other inputs, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or default rates.

 

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.

 

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

 

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

Level 1 – Unadjusted price quotations in active markets for identical assets or liabilities;

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

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

 

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgement exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The fair value hierarchy for each Fund’s investments is included in its schedule of investments. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

 

4. SECURITIES AND OTHER INVESTMENTS

 

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

 

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Notes to Financial Statements (unaudited) (continued)

 

securities but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.

 

As of February 29, 2020, any securities on loan were collateralized by cash and/or U.S. government obligations. Cash collateral received was invested in money market funds managed by BlackRock Fund Advisors (“BFA”), the Funds' investment adviser, or its affiliates and is disclosed in the schedules of investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan for each Fund, if any, are also disclosed in its schedule of investments. The market value of any securities on loan as of February 29, 2020 and the value of the related cash collateral are disclosed in the statements of assets and liabilities.

 

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

 

The following table is a summary of the securities lending agreements by counterparty which are subject to offset under an MSLA as of February 29, 2020:

 

    Market Value of     Cash Collateral     Non-Cash Collateral        
iShares ETF and Counterparty   Securities on Loan     Received (a)   Received     Net Amount  
MSCI Austria                                
Credit Suisse AG Dublin Branch   $ 96,803     $ 96,803     $     $  
Goldman Sachs & Co.     388,113       388,113              
JPMorgan Securities LLC     5,935       5,935              
Morgan Stanley & Co. LLC     385,212       385,212              
Scotia Capital (USA) Inc.     63,746       63,746              
UBSAG     51,258       51,258              
    $ 991,067     $ 991,067     $     $  
MSCI Belgium                                
Barclays Capital Inc.   $ 10,809     $ 10,809     $     $  
BofA Securities, Inc.     3,439       3,439              
Credit Suisse AG Dublin Branch     81,759       81,759              
Deutsche Bank Securities Inc.     51,462       51,462              
Goldman Sachs & Co.     841       841              
HSBC Bank PLC     1,951,029       1,951,029              
JPMorgan Securities LLC     62,253       62,253              
Morgan Stanley & Co. LLC     59,245       59,245              
Scotia Capital (USA) Inc.     75,884       75,884              
UBSAG     12,966       12,966              
    $ 2,309,687     $ 2,309,687     $     $  
MSCI France                                
Deutsche Bank Securities Inc.   $ 140,432     $ 140,432     $     $  
Goldman Sachs & Co.     977,416       977,416              
Morgan Stanley & Co. LLC     2,735,173       2,735,173              
    $ 3,853,021     $ 3,853,021     $     $  
MSCI Netherlands                                
BofA Securities, Inc.   $ 20,507     $ 20,507     $     $  
Credit Suisse AG Dublin Branch     65,910       65,910              
Credit Suisse Securities (USA) LLC     1       1              
Deutsche Bank Securities Inc.     106,997       106,997              
JPMorgan Securities LLC     219,764       219,764              
Morgan Stanley & Co. LLC     944,880       944,880              
    $ 1,358,059     $ 1,358,059     $     $  

 

(a) Collateral received in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by each Fund is disclosed in the Fund's statement of assets and liabilities.

 

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

 

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Notes to Financial Statements (unaudited) (continued)

 

value of an investment purchased with cash collateral falls below the market value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. Such losses are borne entirely by each Fund.

 

5. DERIVATIVE FINANCIAL INSTRUMENTS

 

Futures Contracts: Each Fund’s use of futures contracts is generally limited to cash equitization. This involves the use of available cash to invest in index futures contracts in order to gain exposure to the equity markets represented in or by the Fund’s underlying index and is intended to allow the Fund to better track its underlying index. Futures contracts are standardized, exchange-traded agreements to buy or sell a specific quantity of an underlying instrument at a set price on a future date. Depending on the terms of a contract, a futures contract is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date.

 

Upon entering into a futures contract, a fund is required to pledge to the executing broker which holds segregated from its own assets, an amount of cash, U.S. government securities or other high-quality debt and equity securities equal to the minimum initial margin requirements of the exchange on which the contract is traded. Securities deposited as initial margin, if any, are designated in the schedule of investments and cash deposited, if any, is shown as cash pledged for futures contracts in the statement of assets and liabilities.

 

Pursuant to the contract, a fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation or depreciation and, if any, shown as variation margin receivable or payable on futures contracts in the statement of assets and liabilities. When the contract is closed, a realized gain or loss is recorded in the statement of operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. Losses may arise if the notional value of a futures contract decreases due to an unfavorable change in the market rates or values of the underlying instrument during the term of the contract or if the counterparty does not perform under the contract. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and the assets underlying such contracts.

 

Forward Foreign Currency Exchange Contracts: The iShares MSCI Sweden ETF uses forward foreign currency exchange contracts to better match benchmark currency exposures in order to facilitate tracking of the investment results of its Index. A forward foreign currency exchange contract is an agreement between two parties to buy and sell a currency against another currency at an agreed upon price and quantity. The contracts are traded over-the-counter (“OTC”) and not on an organized exchange.

 

The contract is marked-to-market daily and the change in market value is recorded as unrealized appreciation or depreciation in the statement of assets and liabilities. When the contract is closed, a realized gain or loss is recorded in the statement of operations equal to the difference between the value at the time it was opened and the value at the time it was closed. Non-deliverable forward foreign currency exchange contracts ("NDFs") are settled with the counterparty in cash without the delivery of foreign currency. The use of forward foreign currency exchange contracts involves the risk that the value of a contract changes unfavorably due to movements in the value of the referenced foreign currencies. A fund’s risk of loss from counterparty credit risk on OTC derivatives is generally limited to the aggregate unrealized gain netted against any collateral held by the fund.

 

Master Netting Arrangements: In order to define its contractual rights and to secure rights that will help mitigate its counterparty risk, a fund may enter into an International Swaps and Derivatives Association, Inc. master agreement (“ISDA Master Agreement”) or similar agreement with its derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between a fund and a counterparty that governs certain OTC derivatives and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default including the bankruptcy or insolvency of the counterparty. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset in bankruptcy, insolvency, or other events.

 

The collateral requirements under an ISDA Master Agreement are typically calculated by netting the mark-to-market amount for each transaction under such agreement, and comparing that amount to the value of any collateral currently pledged by a fund and the counterparty. Except for NDFs, the forward foreign currency exchange contracts held by the Funds generally do not require collateral. Cash collateral pledged to the counterparty, if any, is presented as cash pledged as collateral for OTC derivatives on the statement of assets and liabilities. Cash received as collateral from the counterparty may be reinvested in money market funds, including those managed by the Funds' investment adviser, or its affiliates. Such collateral, if any, is presented in the statement of assets and liabilities as affiliated investments at value and as a liability for cash received as collateral on OTC derivatives. To the extent amounts due to the Funds from the counterparty are not fully collateralized, contractually or otherwise, each Fund bears the risk of loss from counterparty non-performance. Each Fund attempts to mitigate counterparty risk by only entering into agreements with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties.

 

For financial reporting purposes, each Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements, if any, in the statement of assets and liabilities.

 

6. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

 

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

 

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Notes to Financial Statements (unaudited) (continued)

 

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

 

Aggregate Average Daily Net Assets   Investment Advisory Fee  
First $7 billion     0.59 %
Over $7 billion, up to and including $11 billion     0.54  
Over $11 billion, up to and including $24 billion     0.49  
Over $24 billion, up to and including $48 billion     0.44  
Over $48 billion, up to and including $72 billion     0.40  
Over $72 billion, up to and including $96 billion     0.36  
Over $96 billion     0.32  

 

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

 

Securities Lending: The U.S. Securities and Exchange Commission (the “SEC”) has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan in a money market fund managed by BFA, or its affiliates, however, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees each Fund bears to an annual rate of 0.04% (the “collateral investment fees”). Securities lending income is equal to the total of income earned from the reinvestment of cash collateral (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. Each Fund retains a portion of securities lending income and remits the remaining portion to BTC as compensation for its services as securities lending agent.

 

Pursuant to the current securities lending agreement, each Fund retains 82% of securities lending income (which excludes collateral investment fees) and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

 

In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across all 1940 Act iShares exchange-traded funds (the “iShares ETF Complex”) in that calendar year exceeds a specified threshold, each Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year 85% of securities lending income (which excludes collateral investment fees), and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

 

The share of securities lending income earned by each Fund is shown as securities lending income – affiliated – net in its statement of operations. For the six months ended February 29, 2020, the Funds paid BTC the following amounts for securities lending agent services:

 

    Fees Paid  
iShares ETF   to BTC  
MSCI Austria   $ 8,036  
MSCI Belgium     4,703  
MSCI France     30,782  
MSCI Netherlands     5,643  
MSCI Sweden     89  

 

Officers and Directors: Certain officers and/or directors of the Company are officers and/or directors of BlackRock or its affiliates.

 

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

 

For the six months ended February 29, 2020, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:

 

                Net Realized  
iShares ETF   Purchases     Sales     Gain (Loss)  
MSCI Austria   $ 253,679     $ 520,502     $ (219,091 )
MSCI Belgium     3,130,929       302,142       (115,612 )
MSCI France     657,460              
MSCI Netherlands     589,519       1,546,813       (178,095 )
MSCI Sweden     662,882       379,316       (6,400 )

 

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

 

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

 

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Notes to Financial Statements (unaudited) (continued)

 

7. PURCHASES AND SALES

 

For the six months ended February 29, 2020, purchases and sales of investments, excluding in-kind transactions and short-term investments, were as follows:

 

iShares ETF   Purchases     Sales  
MSCI Austria   $ 5,494,703     $ 5,519,038  
MSCI Belgium     4,040,460       4,553,681  
MSCI France     6,961,058       7,866,896  
MSCI Netherlands     1 4,552,628       14,246,221  
MSCI Sweden     5,406,503       3,336,955  

 

For the six months ended February 29, 2020, in-kind transactions were as follows:

 

    In-kind     In-kind  
iShares ETF   Purchases     Sales  
MSCI Austria   $ 22,446,498     $ 3,013,272  
MSCI Belgium     2,957,536       13,726,035  
MSCI France     211,614,365       517,432,612  
MSCI Netherlands     101,923,009       16,909,636  
MSCI Sweden     17,076,473       12,936,768  

 

8. INCOME TAX INFORMATION

 

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

 

Management has analyzed tax laws and regulations and their application to the Funds as of February 29, 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.

 

As of August 31, 2019, the Funds had non-expiring capital loss carryforwards available to offset future realized capital gains as follows:

 

iShares ETF   Non-Expiring  
MSCI Austria   $ 37,451,920  
MSCI Belgium     15,794,208  
MSCI France     35,111,271  
MSCI Netherlands     18,093,630  
MSCI Sweden     29,293,453  

 

A fund may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” Such fund may elect to mark-to-market annually the shares of each passive foreign investment company and would be required to distribute to shareholders any such marked-to-market gains.

 

As of February 29, 2020, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:

 

                      Net Unrealized  
          Gross Unrealized     Gross Unrealized     Appreciation  
iShares ETF   Tax Cost     Appreciation     Depreciation     (Depreciation)  
MSCI Austria   $ 89,310,482     $ 1,205,193     $ (21,564,204 )   $ (20,359,011 )
MSCI Belgium     47,472,405       2,708,339       (13,483,517 )     (10,775,178 )
MSCI France     979,693,461       14,157,565       (171,037,483 )     (156,879,918 )
MSCI Netherlands     228,714,744       10,329,717       (26,746,186 )     (16,416,469 )
MSCI Sweden     277,686,168       5,701,985       (65,439,807 )     (59,737,822 )

 

9. PRINCIPAL RISKS

 

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

  

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Notes to Financial Statements (unaudited) (continued)

 

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

 

Market Risk: Market risk arises mainly from uncertainty about future values of financial instruments influenced by price, currency and interest rate movements. It represents the potential loss a fund may suffer through holding market positions in the face of market movements. A fund is exposed to market risk by its investment in equity, fixed income and/or financial derivative instruments or by its investment in underlying funds. The fair value of securities held by a fund may decline due to general market conditions, economic trends or events that are not specifically related to the issuers of the securities including local, regional or global political, social or economic instability or to factors that affect a particular industry or group of industries. 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. The extent of a fund’s exposure to market risk is the market value of the investments held as shown in the fund’s schedule of investments.

 

Investing in the securities of non-U.S. issuers involves certain considerations and risks not typically associated with securities of U.S. issuers . Such risks include, but are not limited to: differences in accounting, auditing and financial reporting standards; more substantial governmental involvement in the economy; higher inflation rates, greater social, economic and political uncertainties; possible nationalization or expropriation of assets; less availability of public information about issuers; imposition of withholding or other taxes; higher transaction and custody costs and delays in settlement procedures; and lower level of regulation of the securities markets and issuers. Non-U.S. securities may be less liquid, more difficult to value, and have greater price volatility due to exchange rate fluctuations. These and other risks are heightened for investments in issuers from countries with less developed capital markets.

 

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 impact of the pandemic may be short term or may last for an extended period of time.

 

Credit Risk: Credit risk is the risk that an issuer or guarantor of debt instruments or the counterparty to a financial transaction, including derivatives contracts, repurchase agreements or loans of portfolio securities, is unable or unwilling to make timely interest and/or principal payments or to otherwise honor its obligations. BFA and its affiliates manage counterparty credit risk by entering into transactions only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose a fund to issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of a fund’s exposure to credit and counterparty risks with respect to those financial assets is approximated by their value recorded in its statement of assets and liabilities.

 

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

 

When a fund concentrates its investments in issuers located in a single country or a limited number of countries, it assumes the risk that economic, regulatory, political and social conditions in that country or those countries may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio.

 

When a fund concentrates its investments in securities within a single or limited number of market sectors, it assumes the risk that economic, regulatory, political and social conditions affecting such sectors may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio.

 

10. CAPITAL SHARE TRANSACTIONS

 

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

 

Transactions in capital shares were as follows:

 

    Six Months Ended     Year Ended  
      02/29/20     08/31/19  
iShares ETF     Shares       Amount       Shares       Amount  
MSCI Austria                                
Shares sold     1,100,000     $ 22,873,476       1,000,000     $ 21,691,523  
Shares redeemed     (150,000 )     (3,068,859 )     (4,500,000 )     (91,942,619 )
Net increase(decrease)     950,000     $ 19,804,617       (3,500,000 )   $ (70,251,096 )
MSCI Belgium                                
Shares sold     160,000     $ 2,968,551       560,000     $ 9,945,400  
Shares redeemed     (720,000 )     (13,833,523 )     (1,040,000 )     (19,061,999 )
Net decrease     (560,000 )   $ (10,864,972 )     (480,000 )   $ (9,116,599 )

  

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Notes to Financial Statements (unaudited) (continued)

  

    Six Months Ended     Year Ended  
    02/29/20     08/31/19  
iShares ETF     Shares       Amount       Shares       Amount  
MSCI France                                
Shares sold     6,800,000     $ 212,092,787       19,200,000     $ 569,122,479  
Shares redeemed     (16,600,000 )     (518,805,478 )     (11,000,000 )     (317,585,883 )
Net increase(decrease)     (9,800,000 )   $ (306,712,691 )     8,200,000     $ 251,536,596  
MSCI Netherlands                                
Shares sold     3,150,000     $ 102,537,915       4,050,000     $ 117,319,587  
Shares redeemed     (500,000 )     (16,939,745 )     (3,850,000 )     (116,001,038 )
Net increase     2,650,000     $ 85,598,170       200,000     $ 1,318,549  
MSCI Sweden                                
Shares sold     600,000     $ 19,956,541       2,400,000     $ 71,346,070  
Shares redeemed     (450,000 )     (13,251,088 )     (2,925,000 )     (86,311,765 )
Net increase(decrease)     150,000     $ 6,705,453       (525,000 )   $ (14,965,695 )

 

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

 

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

 

11. FOREIGN WITHHOLDING TAX CLAIMS

 

The iShares MSCI Sweden ETF has filed claims to recover taxes withheld by Sweden on dividend income based upon certain provisions in the Treaty on the Functioning of the European Union. The Fund has recorded receivables for all recoverable taxes withheld by Sweden based upon previous determinations made by the Swedish tax authorities. Professional and other fees associated with the filing of these claims for foreign withholding taxes have been approved by the Board as appropriate expenses of the Fund. Swedish tax claim receivables and related liabilities are disclosed in the statement of assets and liabilities. Collection of these receivables, and any payment of associated liabilities, depends upon future determinations made by the Swedish tax authorities, the outcome of which is uncertain. If such future determinations are unfavorable, the potential negative impact to the Fund, as of February 29, 2020, is $6,419,847 or $0.86 per share.

 

The Fund, under the approval of the Board, is seeking a closing agreement with the Internal Revenue Service (“IRS”) to address any prior years’ U.S. income tax liabilities attributable to Fund shareholders resulting from the recovery of foreign taxes. The closing agreement would result in the Fund paying a compliance fee to the IRS, on behalf of its shareholders, representing the estimated tax savings generated from foreign tax credits claimed by Fund shareholders on their tax returns in prior years. The Fund has accrued a liability for the estimated IRS compliance fee related to foreign withholding tax claims, which is disclosed in the statement of assets and liabilities. The actual IRS compliance fee may differ from the estimate and that difference may be material.

 

12. LEGAL PROCEEDINGS

 

On June 16, 2016, investors in certain iShares funds (iShares Core S&P Small-Cap ETF, iShares Russell 1000 Growth ETF, iShares Core S&P 500 ETF, iShares Russell Mid-Cap Growth ETF, iShares Russell Mid-Cap ETF, iShares Russell Mid-Cap Value ETF, iShares Select Dividend ETF, iShares Morningstar Mid-Cap ETF, iShares Morningstar Large-Cap ETF, iShares U.S. Aerospace & Defense ETF and iShares Preferred and Income Securities ETF) filed a class action lawsuit against iShares Trust, BlackRock, Inc. and certain of its advisory affiliates, and certain directors/trustees and officers of the Funds (collectively, “Defendants”) in California State Court. The lawsuit alleges the Defendants violated federal securities laws by failing to adequately disclose in the prospectuses issued by the funds noted above the risks of using stop-loss orders in the event of a ‘flash crash’, such as the one that occurred on May 6, 2010. On September 18, 2017, the court issued a Statement of Decision holding that the Plaintiffs lack standing to assert their claims. On October 11, 2017, the court entered final judgment dismissing all of the Plaintiffs’ claims with prejudice. In an opinion dated January 23, 2020, the California Court of Appeal affirmed the dismissal of Plaintiffs’ claims. On March 3, 2020, plaintiffs filed a petition for review by the California Supreme Court.

 

13. SUBSEQUENT EVENTS

 

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

  

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Statement Regarding Liquidity Risk Management Program

 

The Securities and Exchange Commission adopted Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”) to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders.

 

The Board of Directors (the “Board”) of iShares MSCI Austria ETF, iShares MSCI Belgium ETF, iShares MSCI France ETF, iShares MSCI Netherlands ETF and iShares MSCI Sweden ETF met on December 3, 2019 (the “Meeting”) to review the liquidity risk management program (the “Program”) applicable to the iShares Funds (each, a “Fund”) pursuant to the Liquidity Rule. The Board has appointed BlackRock Fund Advisors (“BlackRock”), the investment adviser to the Funds, as the program administrator for each Fund’s Program, as applicable. BlackRock has delegated oversight of the Program to the 40 Act Liquidity Risk Management Committee (the “Committee”). At the Meeting, the Committee, on behalf of BlackRock, provided the Board with a report that addressed the operation of the Program and assessed its adequacy and effectiveness of implementation, including the operation of each Fund’s Highly Liquid Investment Minimum (“HLIM”) where applicable, and any material changes to the Program (the “Report”). The Report covered the period from December 1, 2018 through September 30, 2019 (the “Program Reporting Period”).

 

The Report described the Program’s liquidity classification methodology for categorizing a Fund’s investments (including derivative transactions) into one of four liquidity buckets. It also described BlackRock’s methodology in establishing a Fund’s HLIM and noted that the Committee reviews and ratifies the HLIM assigned to each Fund no less frequently than annually.

 

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

 

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

 

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

 

c) Holdings of cash and cash equivalents, as well as borrowing arrangements. The Committee considered that ETFs generally do not hold more than de minimus amounts of cash. Funds may borrow for temporary or emergency purposes, including to meet payments due from redemptions or to facilitate the settlement of securities or other transactions.

 

d) The relationship between an ETF’s portfolio liquidity and the way in which, and the prices and spreads at which, ETF shares trade, including the efficiency of the arbitrage function and the level of active participation by market participants, including authorized participants. The Committee monitored the prevailing bid/ask spread and the ETF price premium (or discount) to NAV for all ETFs and reviewed any persistent deviations from long-term averages.

 

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

 

There were no material changes to the Program during the Program Reporting Period. The Report provided to the Board stated that the Committee concluded that based on the operation of the functions, as described in the Report, the Program is operating as intended and is effective in implementing the requirements of the Liquidity Rule.

  

S t a t e m e n t  R e g a r d i n g  L i q u i d i t y  R i s k  M a n a g e m e n t  P r o g r a m 45

 

 

 

 

Supplemental Information (unaudited)

 

Section 19(a) Notices

 

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

 

    Total Cumulative Distributions     % Breakdown of the Total Cumulative  
    for the Fiscal Year-to-Date     Distributions for the Fiscal Year-to-Date  
    Net                           Net                          
    Investment   Net Realized   Return of     Total Per     Investment     Net Realized     Return of     Total Per  
iShares ETF Income   Capital Gains   Capital     Share     Income     Capital Gains     Capital     Share  
MSCI Austria(a)   $ 0.100659    $   $ 0.015486     $ 0.116145       87 %     —%       13 %     100 %
MSCI Belgium(a)     0.145472         0.060283       0.205755       71             29       100  
MSCI Sweden(a)     0.303324         0.112344       0.415668       73             27       100  

 

(a) The Fund estimates that it has distributed more than its net investment income and net realized capital gains; therefore, a portion of the distribution may be a return of capital. A return of capital may occur, for example, when some or all of the shareholder's investment in the Fund is returned to the shareholder. A return of capital does not necessarily reflect the Fund's investment performance and should not be confused with "yield" or "income". When distributions exceed total return performance, the difference will incrementally reduce the Fund's net asset value per share.

 

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General Information

 

Electronic Delivery

 

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

 

To enroll in electronic delivery:

 

Go to icsdelivery.com.

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

 

Householding

 

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

 

Availability of Quarterly Schedule of Investments

 

The iShares Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT, and for reporting periods ended prior to March 31, 2019, filed such information on Form N-Q. The iShares Funds' Forms N-Q are available on the SEC’s website at sec.gov. The iShares Funds also disclose their complete schedule of portfolio holdings on a daily basis on the iShares website at iShares.com.

 

Availability of Proxy Voting Policies and Proxy Voting Records

 

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

 

G e n e r a l  I n f o r m a t i o n 47

 

 

 

 

Glossary of Terms Used in this Report

 

Portfolio Abbreviations - Equity

 

SDR Swedish Depositary Receipt

 

Counterparty Abbreviations

 

SCB Standard Chartered Bank

 

Currency Abbreviations

 

EUR Euro

 

SEK Swedish Krona

 

USD United States Dollar

  

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Want to know more? 

iShares.com | 1-800-474-2737

 

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

 

Investing involves risk, including possible loss of principal.

 

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

 

The iShares Funds are not sponsored, endorsed, issued, sold or promoted by MSCI Inc., nor does this company make any representation regarding the advisability of investing in the iShares Funds. BlackRock is not affiliated with the company listed above.

 

©2020 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.

 

iS-SAR-802-0220

 

   

 

 

(LOGO) FEBRUARY 29, 2020

 

 

   
  2020 Semi-Annual Report
(Unaudited)
   

 

iShares, Inc.

 

iShares MSCI Eurozone ETF | EZU | Cboe BZX
iShares MSCI Germany ETF | EWG | NYSE Arca
iShares MSCI Italy ETF | EWI | NYSE Arca
iShares MSCI Spain ETF | EWP | NYSE Arca
iShares MSCI Switzerland ETF | EWL | NYSE Arca

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

You may elect to receive all future reports in paper free of charge. If you hold accounts through a financial intermediary, you can follow the instructions included with this disclosure, if applicable, or contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. Please note that not all financial intermediaries may offer this service. Your election to receive reports in paper will apply to all funds held with your financial intermediary.

 

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive electronic delivery of shareholder reports and other communications by contacting your financial intermediary. Please note that not all financial intermediaries may offer this service.

 

 

 

 

Table of Contents

 

  Page
Fund Summary 3
About Fund Performance 8
Shareholder Expenses 8
Schedules of Investments 9
Financial Statements  
Statements of Assets and Liabilities 24
Statements of Operations 26
Statements of Changes in Net Assets 28
Financial Highlights 31
Notes to Financial Statements 36
Statement Regarding Liquidity Risk Management Program 44
Supplemental Information 45
General Information 46
Glossary of Terms Used in this Report 47

 

 

 

 

Fund Summary as of February 29, 2020 iShares® MSCI Eurozone ETF

 

Investment Objective

 

The iShares MSCI Eurozone ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization equities from developed market countries that use the euro as their official currency, as represented by the MSCI EMU Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

 

Performance

 

            Average Annual Total Returns     Cumulative Total Returns
      6 Months     1 Year     5 Years     10 Years     1 Year     5 Years     10 Years  
Fund NAV     (1.85 )%   (0.94 )%   1.56 %   3.84 %   (0.94 )%   8.05 %   45.73 %
Fund Market     (0.76 )   0.34     1.87     3.99     0.34     9.68     47.89  
Index     (1.65 )   (0.86 )   1.67     3.93     (0.86 )   8.62     47.09  

  

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 8 for more information.

 

Expense Example

 

Actual     Hypothetical 5% Return        
Beginning     Ending     Expenses     Beginning     Ending     Expenses     Annualized  
Account Value     Account Value     Paid During     Account Value     Account Value     Paid During     Expense  
(09/01/19)   (02/29/20)   the Period (a)   (09/01/19)   (02/29/20)   the Period (a)   Ratio  
$ 1,000.00     $ 981.50     $ 2.46     $ 1,000.00     $ 1,022.40     $ 2.51     0.50 %

 

(a) Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 8 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR
Sector Percent of
Total Investments
(a)
Financials   16.4 %
Industrials   14.5  
Consumer Discretionary   14.1  
Information Technology   11.0  
Consumer Staples   9.9  
Health Care   8.2  
Utilities   7.6  
Materials   6.8  
Communication Services   4.9  
Energy   4.4  
Real Estate   2.2  
TEN LARGEST GEOGRAPHIC ALLOCATION    
Country/Geographic Region   Percent of
Total Investments
(a)
France   35.1 %
Germany   26.8  
Netherlands   12.7  
Spain   8.9  
Italy   7.0  
Finland   3.1  
Belgium   2.8  
Ireland   1.8  
Austria   0.7  
United Kingdom   0.6  


(a) Excludes money market funds.

 

F u n d   S u m m a r y 3

 

 

 

Fund Summary as of February 29, 2020 iShares® MSCI Germany ETF

 

Investment Objective

 

The iShares MSCI Germany ETF (the “Fund”) seeks to track the investment results of an index composed of German equities, as represented by the MSCI Germany Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

 

Performance

 

            Average Annual Total Returns     Cumulative Total Returns
      6 Months     1 Year 5     Years     10 Years     1 Year 5     Years     10 Years  
Fund NAV     (1.14 )%   (2.23 )%   (0.45 )%   4.88 %   (2.23 )%   (2.22 )%   61.04 %
Fund Market     (0.11 )   (1.29 )   (0.21 )   5.01     (1.29 )   (1.07 )   63.00  
Index     (0.95 )   (2.05 )   (0.28 )   5.02     (2.05 )   (1.39 )   63.28  

 

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 8 for more information.

 

Expense Example

 

Actual     Hypothetical 5% Return        
Beginning     Ending     Expenses     Beginning     Ending     Expenses     Annualized  
Account Value     Account Value     Paid During     Account Value     Account Value     Paid During     Expense  
(09/01/19)   (02/29/20)   the Period (a)   (09/01/19)   (02/29/20)   the Period (a)   Ratio  
$ 1,000.00     $ 988.60     $ 2.47     $ 1,000.00     $ 1,022.40     $ 2.51     0.50 %

  

(a) Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 8 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR
Sector Percent of
Total Investments
(a)
Consumer Discretionary   16.7 %
Financials   16.7  
Information Technology   14.2  
Health Care   13.1  
Industrials   13.0  
Materials   8.6  
Communication Services   5.2  
Real Estate.   4.6  
Utilities   4.6  
Consumer Staples   3.3  
TEN LARGEST HOLDINGS  
Security   Percent of
Total Investments
(a)
SAP SE   10.6 %
Allianz SE   7.9  
Siemens AG   6.9  
Bayer AG   6.2  
Deutsche Telekom AG   4.8  
BASF SE.   4.7  
adidas AG   4.4  
Daimler AG   3.3  
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen   3.2  
Volkswagen AG   2.7  


(a) Excludes money market funds.

 

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Fund Summary as of February 29, 2020 iShares® MSCI Italy ETF

 

Investment Objective

 

The iShares MSCI Italy ETF (the “Fund”) seeks to track the investment results of an index composed of Italian equities, as represented by the MSCI Italy 25/50 Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

 

Performance

 

            Average Annual Total Returns     Cumulative Total Returns
      6 Months     1 Year     5 Years     10 Years     1 Year     5 Years     10 Years  
Fund NAV     0.96 %   3.09 %   1.15 %   0.62 %   3.09 %   5.89 %   6.35 %
Fund Market     2.04     4.66     1.49     0.77     4.66     7.69     8.01  
Index     1.00     3.17     1.26     0.72     3.17     6.46     7.40  

 

Index performance through February 11, 2013 reflects the performance of the MSCI Italy Index. Index performance beginning on February 12, 2013 reflects the performance of the MSCI Italy 25/50 Index.

 

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 8 for more information.

 

Expense Example

 

Actual     Hypothetical 5% Return        
Beginning     Ending     Expenses     Beginning     Ending     Expenses     Annualized  
Account Value     Account Value     Paid During     Account Value     Account Value     Paid During     Expense  
(09/01/19)   (02/29/20)   the Period (a)   (09/01/19)   (02/29/20)   the Period (a)   Ratio  
$ 1,000.00     $ 1,009.60     $ 2.50     $ 1,000.00     $ 1,022.40     $ 2.51     0.50 %

 

(a) Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 8 for more information.

 

Portfolio Information

 

 ALLOCATION BY SECTOR
 
Sector Percent of
Total Investments
(a)
Financials   30.3 %
Utilities   27.0  
Consumer Discretionary   13.2  
Industrials   11.3  
Energy   10.2  
Communication Services.   3.9  
Consumer Staples   2.1  
Health Care   2.0  
TEN LARGEST HOLDINGS
Security   Percent of
Total Investments
(a)
Enel SpA.   19.8 %
Intesa Sanpaolo SpA   9.9  
Eni SpA   8.3  
UniCredit SpA   6.6  
Fiat Chrysler Automobiles NV   4.8  
Assicurazioni Generali SpA   4.5  
Ferrari NV   4.4  
Atlantia SpA   3.9  
Snam SpA   3.7  
CNH Industrial NV   3.5  


(a) Excludes money market funds.

 

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Fund Summary as of February 29, 2020 iShares® MSCI Spain ETF

 

Investment Objective

 

The iShares MSCI Spain ETF (the “Fund”) seeks to track the investment results of an index composed of Spanish equities, as represented by the MSCI Spain 25/50 Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

 

Performance

 

            Average Annual Total Returns     Cumulative Total Returns
      6 Months     1 Year 5     Years     10 Years     1 Year     5 Years     10 Years  
Fund NAV     (0.33 )%   (7.43 )%   (2.38 )%   0.10 %   (7.43 )%   (11.3 2)%   1.02 %
Fund Market     0.90     (6.03 )   (2.08 )   0.24     (6.03 )   (9.97 )   2.42  
Index     (0.05 )   (7.14 )   (2.00 )   0.04     (7.14 )   (9.62 )   0.40  

 

Index performance through February 11, 2013 reflects the performance of the MSCI Spain Index. Index performance beginning on February 12, 2013 reflects the performance of the MSCI Spain 25/50 Index.

 

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 8 for more information.

 

Expense Example

 

Actual     Hypothetical 5% Return        
Beginning     Ending     Expenses     Beginning     Ending     Expenses     Annualized  
Account Value     Account Value     Paid During     Account Value     Account Value     Paid During     Expense  
(09/01/19)   (02/29/20)   the Period (a)   (09/01/19)   (02/29/20)   the Period (a)   Ratio  
$ 1,000.00     $ 996.70     $ 2.48     $ 1,000.00     $ 1,022.40     $ 2.51     0.50 %

 

(a) Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 8 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR
Sector Percent of
Total Investments
(a)
Financials   31.6 %
Utilities   27.9  
Industrials   13.0  
Communication Services.   8.5  
Consumer Discretionary   6.8  
Information Technology   4.5  
Energy   4.3  
Health Care   3.4  
TEN LARGEST HOLDINGS
Security   Percent of
Total Investments
(a)
Iberdrola SA   17.0 %
Banco Santander SA   14.7  
Banco Bilbao Vizcaya Argentaria SA   7.0  
Industria de Diseno Textil SA   6.8  
Amadeus IT Group SA   4.5  
Ferrovial SA   4.5  
Repsol SA   4.3  
Telefonica SA   4.3  
Cellnex Telecom SA   4.2  
Aena SME SA   3.7  


(a) Excludes money market funds.

 

6 2 0 2 0   i  S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

 

Fund Summary as of February 29, 2020 iShares® MSCI Switzerland ETF

 

Investment Objective

 

The iShares MSCI Switzerland ETF (the “Fund”) seeks to track the investment results of an index composed of Swiss equities, as represented by the MSCI Switzerland 25/50 Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

 

Performance

 

            Average Annual Total Returns     Cumulative Total Returns
      6 Months     1 Year     5 Years     10 Years     1 Year     5 Years     10 Years  
Fund NAV     0.64 %   10.47 %   4.72 %   7.96 %   10.47 %   25.94 %   115.11 %
Fund Market     1.31     11.97     5.05     8.08     11.97     27.93     117.46  
Index     0.85     10.62     4.88     7.96     10.62     26.92     115.00  

 

Index performance through February 11, 2013 reflects the performance of the MSCI Switzerland Index. Index performance beginning on February 12, 2013 reflects the performance of the MSCI Switzerland 25/50 Index.

 

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 8 for more information.

 

Expense Example

 

Actual     Hypothetical 5% Return        
Beginning     Ending     Expenses     Beginning     Ending     Expenses     Annualized  
Account Value     Account Value     Paid During     Account Value     Account Value     Paid During     Expense  
(09/01/19)   (02/29/20)   the Period (a)   (09/01/19)   (02/29/20)   the Period (a)   Ratio  
$ 1,000.00     $ 1,006.40     $ 2.49     $ 1,000.00     $ 1,022.40     $ 2.51     0.50 %

 

(a) Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 8 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR
Sector Percent of
Total Investments
(a)
Health Care   33.1 %
Consumer Staples   23.0  
Financials   18.0  
Industrials   9.9  
Materials   7.9  
Consumer Discretionary   4.7  
Communication Services   1.4  
Real Estate.   1.0  
Information Technology   1.0  
TEN LARGEST HOLDINGS
Security   Percent of
Total Investments
(a)
Nestle SA   20.4 %
Roche Holding AG   14.1  
Novartis AG   11.0  
Zurich Insurance Group AG   4.3  
UBS Group AG   3.5  
ABB Ltd.   3.3  
Cie. Financiere Richemont SA   3.0  
Lonza Group AG   2.6  
Givaudan SA   2.5  
Credit Suisse Group AG   2.5  


(a) Excludes money market funds.

 

F u n d   S u m m a r y 7

 

 

 

 

About Fund Performance

 

Past performance is no guarantee of future results. Financial markets have experienced extreme volatility and trading in many instruments has been disrupted. These circumstances may continue for an extended period of time, and may continue to affect adversely the value and liquidity of the fund’s investments. As a result, current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at iShares.com. Performance results assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. The investment return and principal value of shares will vary with changes in market conditions. Shares may be worth more or less than their original cost when they are redeemed or sold in the market. Performance for certain funds may reflect a waiver of a portion of investment advisory fees. Without such a waiver, performance would have been lower.

 

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

 

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

 

Shareholder Expenses

 

As a shareholder of your Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares and (2) ongoing costs, including management fees and other fund expenses. The expense example, which is based on an investment of $1,000 invested at the beginning of the period (or from the commencement of operations if less than 6 months) and held through the end of the period, is intended to help you understand your ongoing costs (in dollars and cents) of investing in your Fund and to compare these costs with the ongoing costs of investing in other funds.

 

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

 

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

 

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

 

8 2 0 2 0   i  S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

 

Schedule of Investments (unaudited) iShares® MSCI Eurozone ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security Shares   Value  
Common Stocks    
Austria — 0.6%    
ANDRITZ AG   86,126 $ 3,019,794  
Erste Group Bank AG   353,149     12,037,046  
OMV AG   174,021     7,235,153  
Raiffeisen Bank International AG   175,839     3,607,081  
Verbund AG   80,534     3,793,274  
voestalpine AG   137,762     2,993,201  
          32,685,549  
Belgium — 2.8%            
Ageas   211,171     9,714,515  
Anheuser-Busch InBev SA/NV   897,625     50,019,570  
Colruyt SA   65,322     3,000,707  
Galapagos NV(a)   53,360     10,978,266  
Groupe Bruxelles Lambert SA   95,093     8,552,765  
KBC Group NV   294,570     19,420,690  
Proximus SADP   177,100     4,349,812  
Solvay SA   87,594     7,897,541  
Telenet Group Holding NV   55,871     2,118,544  
UCB SA   148,680     13,646,810  
Umicore SA   232,486     9,645,482  
          139,344,702  
Finland — 3.1%            
Elisa OYJ   167,459     9,554,118  
Fortum OYJ   525,080     11,120,202  
Kone OYJ, Class B   400,549     22,439,128  
Metso OYJ   123,436     3,961,888  
Neste OYJ   497,884     19,502,472  
Nokia OYJ   6,640,310     25,127,989  
Nokian Renkaat OYJ   147,865     3,829,917  
Orion OYJ, Class B   123,220     4,865,867  
Sampo OYJ, Class A   522,144     21,152,483  
Stora Enso OYJ, Class R   686,505     8,076,317  
UPM-Kymmene OYJ   629,660     19,179,449  
Wartsila OYJ Abp   520,217     5,373,748  
          154,183,578  
France — 34.9%            
Accor SA   207,980     7,463,643  
Aeroports de Paris   34,802     5,114,939  
Air Liquide SA   556,593     75,139,755  
Airbus SE   687,601     81,647,398  
Alstom SA   225,572     11,023,709  
Amundi SA(b)   71,968     5,110,791  
Arkema SA   81,127     7,580,030  
Atos SE   116,033     8,577,816  
AXA SA   2,275,690     52,381,861  
BioMerieux   48,694     4,458,217  
BNP Paribas SA   1,325,145     63,733,667  
Bollore SA   1,035,675     3,531,225  
Bouygues SA   262,798     10,242,025  
Bureau Veritas SA   341,179     8,263,633  
Capgemini SE   187,243     20,407,273  
Carrefour SA   711,444     12,226,339  
Casino Guichard Perrachon SA(c)   64,647     2,498,894  
Cie. de Saint-Gobain   579,592     20,118,223  
Cie. Generale des Etablissements Michelin SCA   201,247     21,274,785  
CNP Assurances   203,171     3,157,900  
Covivio   56,751     5,984,459  
Credit Agricole SA   1,363,106     16,185,849  
Danone SA   727,258     50,903,123  
Security   Shares     Value  
France (continued)            
Dassault Aviation SA   2,942 $ 3,034,509  
Dassault Systemes SE   154,621     24,117,760  
Edenred   283,099     14,668,455  
Eiffage SA   92,549     9,802,097  
Electricite de France SA   717,514     9,922,846  
Engie SA   2,154,809     35,575,246  
EssilorLuxottica SA   333,784     45,133,989  
Eurazeo SE   46,494     3,094,922  
Eurofins Scientific SE(c)   13,597     6,792,720  
Eutelsat Communications SA   206,508     2,776,505  
Faurecia SE   89,301     4,010,028  
Gecina SA   53,830     9,502,118  
Getlink SE.   517,556     8,288,864  
Hermes International   37,314     25,822,157  
ICADE   35,423     3,511,662  
Iliad SA   17,573     2,437,976  
Ingenico Group SA   71,516     10,051,333  
Ipsen SA   44,824     2,885,283  
JCDecaux SA   100,896     2,305,247  
Kering SA   89,241     49,581,928  
Klepierre SA   233,682     6,935,707  
Legrand SA   314,474     23,841,845  
L’Oreal SA   296,010     78,361,651  
LVMH Moet Hennessy Louis Vuitton SE.   327,541     133,427,119  
Natixis SA   1,120,537     4,513,540  
Orange SA   2,353,579     31,514,661  
Pernod Ricard SA   249,973     40,198,915  
Peugeot SA   690,894     13,284,759  
Publicis Groupe SA   250,012     9,606,403  
Remy Cointreau SA   26,917     2,697,986  
Renault SA   227,349     6,616,634  
Safran SA   385,599     52,563,931  
Sanofi   1,327,722     122,406,514  
Sartorius Stedim Biotech   32,364     6,103,974  
Schneider Electric SE   651,358     64,751,299  
SCOR SE   187,559     6,695,784  
SEB SA   26,911     3,523,597  
SES SA   433,477     4,942,465  
Societe Generale SA   953,455     26,800,978  
Sodexo SA(c)   104,459     9,952,804  
STMicroelectronics NV   804,268     21,564,963  
Suez   400,291     6,278,909  
Teleperformance   69,292     16,729,807  
Thales SA   126,029     12,570,035  
TOTAL SA   2,827,831     119,217,106  
Ubisoft Entertainment SA(a).   106,586     7,888,807  
Unibail-Rodamco-Westfield.   162,865     19,499,991  
Valeo SA   283,540     7,094,932  
Veolia Environnement SA   632,411     18,012,836  
Vinci SA   606,391     60,600,866  
Vivendi SA   976,710     24,697,393  
Wendel SA   32,049     3,897,106  
Worldline SA(a)(b).   150,747     11,400,733  
        1,748,535,249  
Germany — 25.1%            
adidas AG   212,529     58,491,500  
Allianz SE, Registered   491,730     105,219,398  
Aroundtown SA   1,436,612     12,352,944  
BASF SE   1,083,540     63,176,566  
Bayer AG, Registered   1,157,983     82,946,208  


 

S c h e d u l e   o f   I n v e s t m e n t s 9

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI Eurozone ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security Shares   Value  
Germany (continued)            
Bayerische Motoren Werke AG   390,613 25,285,019  
Beiersdorf AG   119,226     12,428,461  
Brenntag AG   181,946     8,076,283  
Carl Zeiss Meditec AG, Bearer   47,859     4,981,074  
Commerzbank AG   1,175,956     6,731,197  
Continental AG   130,111     14,523,569  
Covestro AG(b)   204,738     7,756,607  
Daimler AG, Registered   1,070,648     44,149,027  
Delivery Hero SE(a)(b)   133,895     10,001,230  
Deutsche Bank AG, Registered   2,310,141     19,993,542  
Deutsche Boerse AG   223,597     34,888,907  
Deutsche Lufthansa AG, Registered   282,376     3,625,955  
Deutsche Post AG, Registered   1,167,076     34,767,141  
Deutsche Telekom AG, Registered   3,925,947     63,634,587  
Deutsche Wohnen SE   422,019     16,901,639  
E.ON SE   2,648,647     30,345,098  
Evonik Industries AG   247,182     6,084,696  
Fraport AG Frankfurt Airport Services Worldwide   48,943     3,061,175  
Fresenius Medical Care AG & Co. KGaA   251,323     19,136,872  
Fresenius SE & Co. KGaA   493,036     22,970,913  
GEA Group AG   179,743     4,726,681  
Hannover Rueck SE   71,340     12,616,507  
HeidelbergCement AG   175,682     10,389,926  
Henkel AG & Co. KGaA   121,860     10,286,916  
HOCHTIEF AG   29,494     2,881,773  
Infineon Technologies AG   1,475,014     30,450,577  
KION Group AG   77,203     4,087,534  
Knorr-Bremse AG   57,520     5,812,188  
LANXESS AG   98,502     5,118,918  
Merck KGaA   152,118     18,221,597  
METRO AG   212,984     2,452,989  
MTU Aero Engines AG   61,398     14,884,584  
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen, Registered   170,255     43,144,717  
Puma SE   97,306     7,396,493  
QIAGEN NV(a)   268,460     9,790,341  
RWE AG   688,486     23,565,286  
SAP SE   1,157,976     141,901,903  
Siemens AG, Registered   901,353     92,276,471  
Siemens Healthineers AG(b)   176,057     7,088,701  
Symrise AG   152,181     14,733,761  
Telefonica Deutschland Holding AG   1,052,589     2,729,826  
thyssenkrupp AG(a)(c)   474,523     4,535,827  
Uniper SE   236,443     6,944,932  
United Internet AG, Registered(d)   121,001     3,589,994  
Volkswagen AG   38,403     6,424,587  
Vonovia SE   607,848     32,436,401  
Wirecard AG(c)   138,176     17,447,040  
Zalando SE(a)(b)   163,575     7,102,707  
          1,254,568,785  
Ireland — 1.8%            
AIB Group PLC   971,164     2,238,093  
Bank of Ireland Group PLC   1,137,406     4,192,930  
CRH PLC(a)   931,540     31,178,421  
Flutter Entertainment PLC   93,244     9,830,640  
Irish Bank Resolution Corp. Ltd.(a)(e)   446,666     5  
Kerry Group PLC, Class A   187,041     23,627,339  
Kingspan Group PLC   180,894     11,336,003  
Security   Shares     Value  
Ireland (continued)            
Smurfit Kappa Group PLC.   265,647   $ 8,818,192  
          91,221,623  
Italy — 6.9%            
Assicurazioni Generali SpA.   1,296,380     23,154,373  
Atlantia SpA   584,595     12,448,042  
CNH Industrial NV   1,195,280     10,963,173  
Davide Campari-Milano SpA.   680,270     5,634,207  
Enel SpA   9,582,999     79,748,324  
Eni SpA   2,994,052     36,696,602  
Ferrari NV   142,202     22,110,356  
FinecoBank Banca Fineco SpA   725,940     7,570,597  
Intesa Sanpaolo SpA   17,518,820     42,306,926  
Leonardo SpA   480,806     4,878,968  
Mediobanca Banca di Credito Finanziario SpA   735,950     6,620,829  
Moncler SpA.   213,120     8,245,058  
Pirelli & C SpA(b).   473,104     2,210,203  
Poste Italiane SpA(b)   611,796     6,460,868  
Prysmian SpA   285,437     6,703,446  
Recordati SpA   123,849     5,262,100  
Snam SpA.   2,399,960     11,786,608  
Telecom Italia SpA/Milano(a)   10,788,723     5,926,620  
Tenaris SA   553,700     4,967,872  
Terna Rete Elettrica Nazionale SpA   1,664,108     10,949,354  
UniCredit SpA   2,363,969     29,960,735  
          344,605,261  
Netherlands — 12.7%            
ABN AMRO Bank NV, CVA(b)   500,301     6,836,470  
Adyen NV(a)(b)   12,213     10,694,729  
Aegon NV   2,098,347     7,078,435  
AerCap Holdings NV(a)(c)   145,083     7,555,923  
Akzo Nobel NV   238,425     18,895,930  
Altice Europe NV(a)   727,976     3,872,681  
ArcelorMittal SA   785,621     11,077,020  
ASML Holding NV.   501,531     136,679,915  
EXOR NV   127,636     8,984,126  
Heineken Holding NV   136,289     11,946,587  
Heineken NV   304,921     30,218,320  
ING Groep NV   4,587,695     43,383,781  
Just Eat Takeaway(a)(b)   135,484     11,801,613  
Koninklijke Ahold Delhaize NV   1,297,426     30,184,828  
Koninklijke DSM NV.   213,765     23,891,927  
Koninklijke KPN NV   4,225,185     10,215,178  
Koninklijke Philips NV   1,068,025     45,425,208  
Koninklijke Vopak NV   83,496     3,957,552  
NN Group NV.   364,461     12,346,549  
NXP Semiconductors NV.   328,121     37,304,076  
Prosus NV(a).   573,726     40,125,415  
Randstad NV   139,837     7,174,838  
Unilever NV   1,729,064     90,434,681  
Wolters Kluwer NV   321,806     23,443,303  
          633,529,085  
Portugal — 0.5%            
EDP - Energias de Portugal SA   3,019,558     13,997,033  
Galp Energia SGPS SA   592,878     8,055,921  
Jeronimo Martins SGPS SA   299,410     5,230,944  
          27,283,898  
Spain — 8.9%            
ACS Actividades de Construccion y Servicios SA   296,535     8,745,817  
Aena SME SA(b)   79,836     12,715,895  


 

10 2 0 2 0   i  S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI Eurozone ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security Shares   Value  
Spain (continued)            
Amadeus IT Group SA   507,611 $ 35,406,655  
Banco Bilbao Vizcaya Argentaria SA   7,847,054     37,361,629  
Banco de Sabadell SA   6,629,896     5,761,999  
Banco Santander SA   19,579,448     71,553,915  
Bankia SA   1,422,678     2,234,718  
Bankinter SA   798,965     4,686,506  
CaixaBank SA   4,233,918     10,794,381  
Cellnex Telecom SA(b)   294,767     14,204,523  
Enagas SA   287,485     7,389,434  
Endesa SA   375,576     9,583,567  
Ferrovial SA   578,206     16,437,169  
Grifols SA   351,958     11,211,636  
Iberdrola SA   7,253,809     82,229,182  
Industria de Diseno Textil SA   1,286,926     39,765,227  
Mapfre SA   1,281,337     2,850,156  
Naturgy Energy Group SA   348,398     8,048,132  
Red Electrica Corp. SA   516,056     9,832,213  
Repsol SA   1,669,412     18,576,040  
Siemens Gamesa Renewable Energy SA   281,985     4,499,065  
Telefonica SA   5,512,735     32,457,275  
          446,345,134  
United Kingdom — 0.6%            
Coca-Cola European Partners PLC   272,916     13,907,799  
Fiat Chrysler Automobiles NV   1,280,599     15,813,824  
          29,721,623  
Total Common Stocks — 97.9%
(Cost: $6,044,549,851)
      4,902,024,487  
             
Preferred Stocks            
             
Germany — 1.6%            
Bayerische Motoren Werke AG, Preference            
Shares, NVS   66,086     3,376,987  
Fuchs Petrolub SE, Preference Shares, NVS   82,434     3,125,772  
Henkel AG & Co. KGaA, Preference Shares, NVS   209,792     19,283,717  
Porsche Automobil Holding SE, Preference Shares, NVS   179,670     11,107,333  
Sartorius AG, Preference Shares, NVS   41,882     9,523,091  
Volkswagen AG, Preference Shares, NVS   218,943     35,733,172  
          82,150,072  
Italy — 0.1%            
Telecom Italia SpA/Milano, Preference Shares, NVS   7,020,666     3,885,229  
Total Preferred Stocks — 1.7%
(Cost: $127,959,469)
        86,035,301  
Security   Shares      Value  
Rights            
Spain — 0.0%            
ACS Actividades de Construccion y Servicios SA, (Expires 03/03/20)(a)   311,704   $ 136,374  
Total Rights — 0.0%
(Cost: $151,473)
        136,374  
             
Short-Term Investments            
Money Market Funds — 1.0%            
BlackRock Cash Funds: Institutional, SL Agency Shares,1.74%(f)(g)(h)   46,783,147     46,815,895  
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52%(f)(g)   2,026,000     2,026,000  
          48,841,895  
             

Total Short-Term Investments — 1.0%

(Cost: $48,827,828)

        48,841,895  
Total Investments in Securities — 100.6%
(Cost: $6,221,488,621).
        5,037,038,057  
Other Assets, Less Liabilities — (0.6)%         (30,059,113 )
Net Assets — 100.0%       $ 5,006,978,944  

 

(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) All or a portion of this security is on loan.

(d) This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933.

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

(f) Affiliate of the Fund.

(g) Annualized 7-day yield as of period-end.
(h) All or a portion of this security was purchased with cash collateral received from loaned securities.

 



S c h e d u l e   o f   I n v e s t m e n t s 11

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI Eurozone ETF
February 29, 2020

 

Affiliates

 

Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940Act, were as follows:

 

Affiliated Issuer   Shares
Held at
08/31/19
    Net Activity     Shares
Held at
02/29/20
    Value at
02/29/20
    Income     Net
Realized

Gain
(Loss)(a)
    Change in
Unrealized
Appreciation
(Depreciation)
 
BlackRock Cash Funds: Institutional, SL Agency Shares   40,300,373     6,482,774     46,783,147   $ 46,815,895   $ 423,530 (b) $ 9,081   $ 3,030  
BlackRock Cash Funds: Treasury, SL Agency Shares   2,795,000     (769,000 )   2,026,000     2,026,000     20,085          
                    $ 48,841,895   $ 443,615   $ 9,081   $ 3,030  
(a) Includes realized capital gain distributions from an affiliated fund, if any.

(b) Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

 

Futures Contracts

 

Description   Number of
Contracts
  Expiration
Date
    Notional
Amount
(000)
    Value/
Unrealized
Appreciation
(Depreciation)
 
Long Contracts
Euro STOXX 50 Index
  497   03/20/20   $ 18,092   $ (1,814,750 )

  

Derivative Financial Instruments Categorized by Risk Exposure

 

As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

  Equity
Contracts
 
Liabilities — Derivative Financial Instruments      
Futures contracts      
Unrealized depreciation on futures contracts(a) $ 1,814,750  

 

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

 

For the six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:

 
  Equity
Contracts
 
Net Realized Gain (Loss) from:      
Futures contracts $ 2,466,209  
       
Net Change in Unrealized Appreciation (Depreciation) on:      
Futures contracts $ (2,098,132 )

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

       
     
Futures contracts:      
Average notional value of contracts — long $ 21,604,011  

 

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

 

Fair Value Measurements

 

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

 

12 2 0 2 0   i  S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI Eurozone ETF
February 29, 2020  

 

Fair Value Measurements (continued)

 

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.

 

  Level 1   Level 2   Level 3   Total  
Investments        
Assets        
Common Stocks $ 4,902,024,482   $   $ 5   $ 4,902,024,487  
Preferred Stocks   86,035,301             86,035,301  
Rights   136,374             136,374  
Money Market Funds   48,841,895             48,841,895  
  $ 5,037,038,052   $   $ 5   $ 5,037,038,057  
Derivative financial instruments(a)                        
Liabilities                        
Futures Contracts $ (1,814,750 ) $   $   $ (1,814,750 )

 

(a) Shown at the unrealized appreciation (depreciation) on the contracts.

 

See notes to financial statements.

 

S c h e d u l e   o f   I n v e s t m e n t s 13

 

 

 

 

Schedule of Investments (unaudited) iShares® MSCI Germany ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security Shares   Value  
             
Common Stocks            
             
Aerospace & Defense — 1.1%            
MTU Aero Engines AG   91,897 $ 22,278,391  
             
Air Freight & Logistics — 2.6%            
Deutsche Post AG, Registered   1,743,245     51,931,189  
             
Airlines — 0.3%            
Deutsche Lufthansa AG, Registered   421,787     5,416,115  
             
Auto Components — 1.1%            
Continental AG   194,323     21,691,199  
             
Automobiles — 5.6%            
Bayerische Motoren Werke AG   583,479     37,769,551  
Daimler AG, Registered   1,602,542     66,082,101  
Volkswagen AG   57,417     9,605,513  
          113,457,165  
             
Banks — 0.5%            
Commerzbank AG   1,773,958     10,154,173  
             
Capital Markets — 4.1%            
Deutsche Bank AG, Registered   3,468,468     30,018,497  
Deutsche Boerse AG   334,824     52,244,187  
          82,262,684  
             
Chemicals — 7.2%            
BASF SE   1,618,606     94,373,968  
Covestro AG(a)   306,824     11,624,189  
Evonik Industries AG   369,569     9,097,405  
LANXESS AG   146,397     7,607,908  
Symrise AG   227,106     21,987,802  
          144,691,272  
             
Construction & Engineering — 0.2%            
HOCHTIEF AG   44,202     4,318,849  
             
Construction Materials — 0.8%            
HeidelbergCement AG   262,244     15,509,249  
             
Diversified Telecommunication Services — 5.2%            
Deutsche Telekom AG, Registered   5,873,699     95,205,160  
Telefonica Deutschland Holding AG   1,563,738     4,055,460  
United Internet AG, Registered(b)   180,820     5,364,771  
          104,625,391  
             
Food & Staples Retailing — 0.2%            
METRO AG   321,825     3,706,537  
             
Health Care Equipment & Supplies — 0.9%            
Carl Zeiss Meditec AG, Bearer   71,413     7,432,530  
Siemens Healthineers AG(a)   265,031     10,671,121  
          18,103,651  
             
Health Care Providers & Services — 3.1%            
Fresenius Medical Care AG & Co. KGaA   375,426     28,586,636  
Fresenius SE & Co. KGaA   736,341     34,306,674  
          62,893,310  
             
Household Products — 0.8%            
Henkel AG & Co. KGaA   183,189     15,464,056  
             
Independent Power and Renewable Electricity Producers — 0.5%            
Uniper SE   355,783     10,450,252  
             
Industrial Conglomerates — 6.9%            
Siemens AG, Registered   1,348,137     138,016,209  
Security   Shares     Value  
             
Insurance — 12.0%            
Allianz SE, Registered   735,216   $ 157,320,043  
Hannover Rueck SE   106,254     18,791,061  
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen, Registered   254,320     64,447,825  
          240,558,929  
             
Internet & Direct Marketing Retail — 1.3%            
Delivery Hero SE(a)(c)   199,376     14,892,306  
Zalando SE(a)(c)   243,812     10,586,735  
          25,479,041  
             
IT Services — 1.3%            
Wirecard AG(d)   207,014     26,138,993  
             
Life Sciences Tools & Services — 0.7%            
QIAGEN NV(c)   399,974     14,586,463  
             
Machinery — 1.1%            
GEA Group AG   272,051     7,154,094  
KION Group AG   115,396     6,109,672  
Knorr-Bremse AG   85,850     8,674,832  
          21,938,598  
             
             
Metals & Mining — 0.3%            
thyssenkrupp AG(c)(d)   716,024     6,844,265  
             
Multi-Utilities — 4.0%            
E.ON SE   3,956,519     45,329,165  
RWE AG   1,029,183     35,226,558  
          80,555,723  
             
Personal Products — 0.9%            
Beiersdorf AG   177,632     18,516,870  
             
Pharmaceuticals — 7.5%            
Bayer AG, Registered   1,731,401     124,020,083  
Merck KGaA.   227,910     27,300,412  
          151,320,495  
             
Real Estate Management & Development — 4.6%            
Aroundtown SA   2,146,257     18,454,943  
Deutsche Wohnen SE.   633,906     25,387,602  
Vonovia SE   907,846     48,445,099  
          92,287,644  
             
Semiconductors & Semiconductor Equipment — 2.3%            
Infineon Technologies AG   2,203,262     45,484,719  
             
Software — 10.5%            
SAP SE   1,731,970     212,240,874  
             
Textiles, Apparel & Luxury Goods — 4.9%            
adidas AG   317,869     87,482,812  
Puma SE   146,736     11,153,802  
          98,636,614  
             
Trading Companies & Distributors — 0.6%            
Brenntag AG   272,728     12,105,946  
             
Transportation Infrastructure — 0.2%            
Fraport AG Frankfurt Airport Services Worldwide   74,125     4,636,202  
Total Common Stocks — 93.3%
(Cost: $2,483,449,433)
        1,876,301,068  


 

14 2 0 2 0   i  S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI Germany ETF
February 29, 2020 (Percentages shown are based on Net Assets)

Security Shares   Value  
             
Preferred Stocks            
             
Automobiles — 3.8%            
Bayerische Motoren Werke AG, Preference Shares, NVS   99,332 $ 5,075,853  
Porsche Automobil Holding SE, Preference Shares, NVS   269,839     16,681,648  
Volkswagen AG, Preference Shares, NVS   327,045     53,376,246  
          75,133,747  
             
Chemicals — 0.2%            
Fuchs Petrolub SE, Preference Shares, NVS   124,140     4,707,201  
             
Health Care Equipment & Supplies — 0.7%            
Sartorius AG, Preference Shares, NVS   62,993     14,323,290  
             
Household Products — 1.4%            
Henkel AG & Co. KGaA, Preference Shares, NVS   314,214     28,882,006  
             
Total Preferred Stocks — 6.1%
(Cost: $170,836,181)
        123,046,244  
             
Short-Term Investments            
Money Market Funds — 1.8%            
BlackRock Cash Funds: Institutional, SL Agency Shares, 1.74%(e)(f)(g)   35,141,393     35,165,992  

Security   Shares     Value  
             
Money Market Funds (continued)            
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52%(e)(f)   1,300,000   $ 1,300,000  
          36,465,992  
             
Total Short-Term Investments — 1.8%
(Cost: $36,454,211)
        36,465,992  
             
Total Investments in Securities — 101.2%
(Cost: $2,690,739,825)
        2,035,813,304  
             
Other Assets, Less Liabilities — (1.2)%         (24,939,347 )
Net Assets — 100.0%       $ 2,010,873,957  

 

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

(b) This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933.

(c) Non-income producing security.

(d) All or a portion of this security is on loan. (e) Affiliate of the Fund.

(f) Annualized 7-day yield as of period-end.

(g) All or a portion of this security was purchased with cash collateral received from loaned securities.


 

Affiliates

 

Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940Act, were as follows:

  

Affiliated Issuer   Shares
Held at
08/31/19
    Net Activity     Shares
Held at
02/29/20
    Value at
02/29/20
    Income     Net
Realized

Gain
(Loss)(a)
    Change in
Unrealized
Appreciation
(Depreciation)
 
BlackRock Cash Funds: Institutional, SL Agency Shares   39,070,907     (3,929,514 )   35,141,393   $ 35,165,992   $ 229,680 (b) $ 180   $ 7,521  
BlackRock Cash Funds: Treasury, SL Agency Shares   839,000     461,000     1,300,000     1,300,000     8,856          
                    $ 36,465,992   $ 238,536   $ 180   $ 7,521  
(a) Includes realized capital gain distributions from an affiliated fund, if any.

(b) Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

 

Futures Contracts

 

Description   Number of
Contracts
  Expiration
Date
    Notional
Amount
(000)
    Value/
Unrealized
Appreciation
(Depreciation)
 
Long Contracts
DAX Index
  34   03/20/20   $ 11,035   $ (1,546,693 )

 

S c h e d u l e   o f   I n v e s t m e n t s 15

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI Germany ETF
February 29, 2020  

 

Derivative Financial Instruments Categorized by Risk Exposure

 

As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

  Equity
Contracts
 
Liabilities — Derivative Financial Instruments      
Futures contracts      
Unrealized depreciation on futures contracts(a) $ 1,546,693  

 

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

 

For the six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

  Equity
Contracts
 
Net Realized Gain (Loss) from:      
Futures contracts $ 852,066  
Net Change in Unrealized Appreciation (Depreciation) on:      
Futures contracts $ (1,378,783 )

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

       
Futures contracts:      
Average notional value of contracts — long $ 11,958,493  

 

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

 

Fair Value Measurements

 

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

 

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.

 

  Level 1   Level 2   Level 3   Total  
Investments        
Assets        
Common Stocks $ 1,876,301,068   $   $   $ 1,876,301,068  
Preferred Stocks   123,046,244             123,046,244  
Money Market Funds   36,465,992             36,465,992  
  $ 2,035,813,304   $   $   $ 2,035,813,304  
Derivative financial instruments(a)                        
Liabilities                        
Futures Contracts $ (1,546,693 ) $   $   $ (1,546,693 )

 

(a) Shown at the unrealized appreciation (depreciation) on the contracts.

 

See notes to financial statements.

 

16 2 0 2 0   i  S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

 

Schedule of Investments (unaudited) iShares® MSCI Italy ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Common Stocks                
Aerospace & Defense — 1.5%                
Leonardo SpA     449,570     $ 4,562,002  
                 
Auto Components — 1.2%                
Pirelli & C SpA(a)     770,671       3,600,348  
                 
Automobiles — 9.2%                
Ferrari NV     87,650       13,628,308  
Fiat Chrysler Automobiles NV     1,183,805       14,618,537  
              28,246,845  
Banks — 20.6%                
FinecoBank Banca Fineco SpA     533,238       5,560,969  
Intesa Sanpaolo SpA     12,530,920       30,261,440  
Mediobanca Banca di Credito Finanziario SpA     786,959       7,079,721  
UniCredit SpA     1,602,297       20,307,371  
              63,209,501  
Beverages — 2.1%                
Davide Campari-Milano SpA     762,298       6,313,589  
Diversified Financial Services — 2.9%                
EXOR NV     128,749       9,062,469  
                 
Diversified Telecommunication Services — 2.2%                
Telecom Italia SpA/Milano(b)     12,263,718       6,736,885  
                 
Electric Utilities — 23.2%                
Enel SpA     7,280,986       60,591,306  
Terna Rete Elettrica Nazionale SpA     1,627,791       10,710,398  
              71,301,704  
Electrical Equipment — 2.4%                
Prysmian SpA     308,565       7,246,604  
                 
Energy Equipment & Services — 1.9%                
Tenaris SA     647,879       5,812,859  
                 
Gas Utilities — 3.7%                
Snam SpA     2,321,345       11,400,516  
                 
Insurance — 6.8%                
Assicurazioni Generali SpA     769,775       13,748,791  
Poste Italiane SpA(a)     663,635       7,008,314  
              20,757,105  
Machinery — 3.5%                
CNH Industrial NV     1,182,974       10,850,302  

Security   Shares     Value  
Oil, Gas & Consumable Fuels — 8.3%                
Eni SpA     2,086,446     $ 25,572,528  
                 
Pharmaceuticals — 2.0%                
Recordati SpA     144,397       6,135,144  
                 
Textiles, Apparel & Luxury Goods — 2.8%                
Moncler SpA     222,196       8,596,185  
                 
Transportation Infrastructure — 3.9%                
Atlantia SpA     557,200       11,864,708  
                 
Total Common Stocks — 98.2%                
(Cost: $345,715,729)             301,269,294  
                 
Preferred Stocks                
                 
Diversified Telecommunication Services — 1.7%        
Telecom Italia SpA/Milano, Preference Shares, NVS     9,324,750       5,160,307  
Total Preferred Stocks — 1.7%                
(Cost: $6,755,316)             5,160,307  
                 
Short-Term Investments                
                 
Money Market Funds — 0.1%                
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52%(c)(d)     175,000       175,000  
Total Short-Term Investments — 0.1%                
(Cost: $175,000)             175,000  
Total Investments in Securities — 100.0%                
(Cost: $352,646,045)             306,604,601  
Other Assets, Less Liabilities — 0.0%                36,790  
Net Assets — 100.0%           $ 306,641,391  

 

(a) Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.
(b) Non-income producing security.
(c) Affiliate of the Fund.
(d) Annualized 7-day yield as of period-end.


Affiliates

 

Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940Act, were as follows:

 

                                        Change in  
    Shares           Shares                       Unrealized  
    Held at           Held at     Value at           Net Realized     Appreciation  
Affiliated Issuer   08/31/19     Net Activity     02/29/20     02/29/20     Income     Gain (Loss)(a)     (Depreciation)  
BlackRock Cash Funds: Institutional, SL Agency Shares               $     $ 23 (b)   $     $  
BlackRock Cash Funds: Treasury, SL Agency Shares   103,000     72,000     175,000       175,000       1,655              
                      $ 175,000     $ 1,678   $     $  

 

(a) Includes realized capital gain distributions from an affiliated fund, if any.
(b) Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

 

S c h e d u l e   o f   I n v e s t m e n t s 17

 

 

 

 

Schedule of Investments (unaudited)(continued) iShares® MSCI Italy ETF
February 29, 2020

 

 

Futures Contracts

 

                      Value/  
                Notional     Unrealized  
    Number of     Expiration     Amount     Appreciation  
Description     Contracts       Date       (000 )     (Depreciation)  
Long Contracts                                
FTSE/MIB Index     1       03/20/20     $ 121     $ (10,823 )

 

Derivative Financial Instruments Categorized by Risk Exposure

 

As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

    Equity  
    Contracts  
Liabilities — Derivative Financial Instruments        
Futures contracts        
Unrealized depreciation on futures contracts(a)      $ 10,823  

 

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

 

For the six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

    Equity  
    Contracts  
Net Realized Gain (Loss) from:        
Futures contracts   $ 71,447  
Net Change in Unrealized Appreciation (Depreciation) on:        
Futures contracts   $ (4,600 )

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:      
Average notional value of contracts — long   $ 371,557  

 

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

 

Fair Value Measurements

 

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

 

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.

 

    Level 1     Level 2     Level 3     Total  
Investments                        
Assets                        
Common Stocks   $ 301,269,294     $     $     $ 301,269,294  
Preferred Stocks     5,160,307                   5,160,307  
Money Market Funds     175,000                   175,000  
    $ 306,604,601     $     $     $ 306,604,601  
Derivative financial instruments(a)                                
Liabilities                                
Futures Contracts   $ (10,823 )   $     $     $ (10,823 )

 

(a) Shown at the unrealized appreciation (depreciation) on the contracts.

 

See notes to financial statements.

 

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Schedule of Investments (unaudited) iShares® MSCI Spain ETF
February 29, 2020 (Percentages shown are based on Net Assets)

  

Security   Shares     Value  
Common Stocks                
Banks — 30.1%                
Banco Bilbao Vizcaya Argentaria SA     13,197,113     $ 62,834,490  
Banco de Sabadell SA     21,634,888       18,802,738  
Banco Santander SA     35,719,787       130,539,461  
Bankia SA     7,222,281       11,344,636  
Bankinter SA     2,812,066       16,494,795  
CaixaBank SA        11,134,474       28,387,360  
              268,403,480  
Biotechnology — 3.4%                
Grifols SA     956,557       30,471,161  
Construction & Engineering — 7.2%                
ACS Actividades de Construccion y Servicios SA     832,755       24,560,754  
Ferrovial SA     1,398,621       39,759,825  
              64,320,579  
Diversified Telecommunication Services — 8.5%                
Cellnex Telecom SA(a)     780,834       37,627,598  
Telefonica SA     6,445,383       37,948,418  
              75,576,016  
Electric Utilities — 22.9%                
Endesa SA     1,079,639       27,549,132  
Iberdrola SA     13,333,437       151,147,847  
Red Electrica Corp. SA     1,331,194       25,362,719  
              204,059,698  
Electrical Equipment — 2.0%                
Siemens Gamesa Renewable Energy SA        1,116,611       17,815,507  
                 
Gas Utilities — 5.0%                
Enagas SA     806,507       20,730,232  
Naturgy Energy Group SA     1,027,235       23,729,535  
              44,459,767  
Insurance — 1.5%                
Mapfre SA     5,853,835       13,021,040  
                 
IT Services — 4.5%                
Amadeus IT Group SA     577,020       40,248,041  
                 
Oil, Gas & Consumable Fuels — 4.3%                
Repsol SA     3,422,379       38,081,821  

Security   Shares     Value  
Specialty Retail — 6.8%                
Industria de Diseno Textil SA     1,973,805     $ 60,989,368  
                 
Transportation Infrastructure — 3.7%                
Aena SME SA(a)     206,678       32,918,680  
                 
Total Common Stocks — 99.9%                
(Cost: $1,195,512,922)             890,365,158  
                 
Rights                
                 
Construction & Engineering — 0.0%                
ACS Actividades de Construccion y Servicios SA, (Expires 03/03/20)(b)     841,195       368,033  
Total Rights — 0.0%                
(Cost: $408,781)             368,033  
                 
Short-Term Investments                
                 
Money Market Funds — 0.1%                
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52%(c)(d)     387,000       387,000  
Total Short-Term Investments — 0.1%                
(Cost: $387,000)             387,000  
Total Investments in Securities — 100.0%                
(Cost: $1,196,308,703)             891,120,191  
Other Assets, Less Liabilities — 0.0%                315,693  
Net Assets — 100.0%           $ 891,435,884  

 

(a) Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.
(b) Non-income producing security.
(c) Affiliate of the Fund.
(d) Annualized 7-day yield as of period-end.


Affiliates

 

Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940Act, were as follows:

 

                                        Change in  
    Shares           Shares                       Unrealized  
    Held at           Held at     Value at           Net Realized     Appreciation  
Affiliated Issuer   08/31/19     Net Activity     02/29/20     02/29/20     Income     Gain (Loss)(a)     (Depreciation)  
BlackRock Cash Funds: Institutional, SL Agency Shares               $     $ 1,533 (b)   $ 107     $  
BlackRock Cash Funds: Treasury, SL Agency Shares   419,000     (32,000 )   387,000       387,000       6,250              
                      $ 387,000     $ 7,783     $ 107     $  

 

(a) Includes realized capital gain distributions from an affiliated fund, if any.
(b) Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

 

S c h e d u l e   o f   I n v e s t m e n t s 19

 

 

 

 

Schedule of Investments (unaudited)(continued) iShares® MSCI Spain ETF
February 29, 2020

 

Futures Contracts

 

                      Value/  
                Notional     Unrealized  
    Number of     Expiration     Amount     Appreciation  
Description     Contracts       Date       (000 )     (Depreciation)  
Long Contracts                                
IBEX 35 Index     5       03/20/20     $ 477     $ (72,880 )

 

Derivative Financial Instruments Categorized by Risk Exposure

 

As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

    Equity  
    Contracts  
Liabilities — Derivative Financial Instruments        
Futures contracts        
Unrealized depreciation on futures contracts(a)      $ 72,880  

 

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

 

For the six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

    Equity  
    Contracts  
Net Realized Gain (Loss) from:        
Futures contracts   $ 82,653  
Net Change in Unrealized Appreciation (Depreciation) on:        
Futures contracts   $ (96,766 )

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:        
Average notional value of contracts — long   $ 1,159,585

 

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

 

Fair Value Measurements

 

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

 

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.

 

    Level 1     Level 2     Level 3     Total  
Investments                        
Assets                        
Common Stocks   $ 890,365,158     $     $     $ 890,365,158  
Rights     368,033                   368,033  
Money Market Funds     387,000                   387,000  
    $ 891,120,191     $     $     $ 891,120,191  
Derivative financial instruments(a)                                
Liabilities                                
Futures Contracts   $ (72,880 )   $     $     $ (72,880 )

 

(a) Shown at the unrealized appreciation (depreciation) on the contracts.

 

See notes to financial statements.

 

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Schedule of Investments (unaudited) iShares® MSCI Switzerland ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Common Stocks                
Building Products — 1.7%                
Geberit AG, Registered     35,437     $ 17,536,363  
                 
Capital Markets — 8.4%                
Credit Suisse Group AG, Registered     2,263,346       25,276,895  
Julius Baer Group Ltd.     240,675       9,997,977  
Partners Group Holding AG     18,448       15,837,892  
UBS Group AG, Registered     3,319,881       36,355,947  
              87,468,711  
Chemicals — 5.8%                
Clariant AG, Registered     294,591       6,172,122  
EMS-Chemie Holding AG, Registered     11,315       6,587,120  
Givaudan SA, Registered     8,368       25,987,094  
Sika AG, Registered       118,368       20,960,045  
              59,706,381  
Construction Materials — 2.0%                
LafargeHolcim Ltd., Registered     455,667       21,047,442  
                 
Diversified Financial Services — 0.5%                
Pargesa Holding SA, Bearer     68,640       5,002,895  
                 
Diversified Telecommunication Services — 1.3%                
Swisscom AG, Registered     26,193       13,898,161  
                 
Electrical Equipment — 3.3%                
ABB Ltd., Registered     1,603,101       34,465,139  
                 
Food Products — 22.8%                
Barry Callebaut AG, Registered     3,809       7,803,344  
Chocoladefabriken Lindt & Spruengli AG, Participation Certificates, NVS     1,226       9,537,455  
Chocoladefabriken Lindt & Spruengli AG, Registered     117       10,117,155  
Nestle SA, Registered     2,052,628       209,620,619  
              237,078,573  
Health Care Equipment & Supplies — 4.5%                
Alcon Inc.(a)     380,286       23,164,071  
Sonova Holding AG, Registered     56,289       13,363,513  
Straumann Holding AG, Registered     11,350       10,564,957  
              47,092,541  
Insurance — 8.9%                
Baloise Holding AG, Registered     55,664       8,907,850  
Swiss Life Holding AG, Registered     32,547       14,747,780  
Swiss Re AG     262,014       24,805,995  
Zurich Insurance Group AG     115,472       44,246,671  
              92,708,296  
Life Sciences Tools & Services — 2.6%                
Lonza Group AG, Registered     67,716       26,752,000  
                 
Machinery — 1.6%                
Schindler Holding AG, Participation Certificates, NVS     45,343       10,048,116  

Security   Shares     Value  
Machinery (continued)                
Schindler Holding AG, Registered     29,326     $ 6,277,542  
              16,325,658  
Marine — 0.9%                
Kuehne + Nagel International AG, Registered     62,595       9,089,031  
Pharmaceuticals — 25.8%                
Novartis AG, Registered     1,350,011       113,320,310  
Roche Holding AG, NVS     452,956       144,925,330  
Vifor Pharma AG     53,911       8,950,356  
              267,195,996  
Professional Services — 2.4%                
Adecco Group AG, Registered     177,108       9,401,115  
SGS SA, Registered     6,085       15,074,983  
              24,476,098  
Real Estate Management & Development — 1.0%                
Swiss Prime Site AG, Registered     87,368       10,470,260  
                 
Software — 1.0%                
Temenos AG, Registered(a)     71,165       10,090,807  
                 
Specialty Retail — 0.5%                
Dufry AG, Registered.     68,213       4,948,517  
                 
Textiles, Apparel & Luxury Goods — 4.2%                
Cie. Financiere Richemont SA, Registered     459,062       31,016,741  
Swatch Group AG (The), Bearer     35,490       8,135,990  
Swatch Group AG (The), Registered        107,029       4,566,659  
              43,719,390  
Total Common Stocks — 99.2%                
(Cost: $1,014,521,072)               1,029,072,259  
                 
Short-Term Investments                
                 
Money Market Funds — 0.0%                
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52%(b)(c)     526,000       526,000  
Total Short-Term Investments — 0.0%                
(Cost: $526,000)             526,000  
Total Investments in Securities — 99.2%                
(Cost: $1,015,047,072)               1,029,598,259  
Other Assets, Less Liabilities — 0.8%             7,842,250  
Net Assets — 100.0%           $ 1,037,440,509  

 

(a) Non-income producing security.
(b) Affiliate of the Fund.
(c) Annualized 7-day yield as of period-end.



S c h e d u l e   o f   I n v e s t m e n t s 21

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI Switzerland ETF
February 29, 2020

 

Affiliates

 

Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940Act, were as follows:

 

                                      Change in  
    Shares           Shares                     Unrealized  
    Held at           Held at     Value at           Net Realized   Appreciation  
Affiliated Issuer   08/31/19     Net Activity     02/29/20     02/29/20     Income     Gain (Loss)(a)   (Depreciation)  
BlackRock Cash Funds: Treasury, SL Agency Shares     516,000       10,000       526,000     $ 526,000     $ 4,293     $—   $  

 

(a) Includes realized capital gain distributions from an affiliated fund, if any.

 

Futures Contracts

 

                      Value/  
                Notional     Unrealized  
    Number of     Expiration     Amount     Appreciation  
Description     Contracts       Date       (000 )     (Depreciation)  
Long Contracts                                
Euro STOXX 50 Index     170       03/20/20     $ 6,188     $ (846,852 )

 

Derivative Financial Instruments Categorized by Risk Exposure

 

As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

    Equity  
    Contracts  
Liabilities — Derivative Financial Instruments        
Futures contracts        
Unrealized depreciation on futures contracts(a)      $ 846,852  

 

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

 

For the six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

    Equity  
    Contracts  
Net Realized Gain (Loss) from:        
Futures contracts   $ 1,197,883  
Net Change in Unrealized Appreciation (Depreciation) on:        
Futures contracts   $ (1,019,745 )

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:      
Average notional value of contracts — long   $ 8,946,256  

 

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

 

Fair Value Measurements

 

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

 

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Schedule of Investments (unaudited) (continued) iShares® MSCI Switzerland ETF
February 29, 2020

 

Fair Value Measurements (continued)

 

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.

 

    Level 1     Level 2     Level 3     Total  
Investments                        
Assets                        
Common Stocks   $ 1,029,072,259     $     $     $ 1,029,072,259  
Money Market Funds     526,000                   526,000  
    $ 1,029,598,259     $     $     $ 1,029,598,259  
Derivative financial instruments(a)                                
Liabilities                                
Futures Contracts   $ (846,852 )   $     $     $ (846,852 )

 

(a) Shown at the unrealized appreciation (depreciation) on the contracts.

 

See notes to financial statements.

 

S c h e d u l e   o f   I n v e s t m e n t s 23

 

 

 

 

Statements of Assets and Liabilities (unaudited)

February 29, 2020

 

    iShares     iShares     iShares        
    MSCI Eurozone     MSCI Germany     MSCI Italy     iShares  
    ETF     ETF     ETF     MSCI Spain ETF  
                         
ASSETS                        
Investments in securities, at value (including securities on loan)(a)                                
Unaffiliated(b)   $ 4,988,196,162     $ 1,999,347,312     $ 306,429,601     $  890,733,191  
Affiliated(c)     48,841,895       36,465,992       175,000       387,000  
Cash     936       28       458       823  
Foreign currency, at value(d)     5,230,690       5,161,702       330,790       1,311,440  
Foreign currency collateral pledged:                                
Futures contracts(e)     1,038,035       1,123,934       10,985       115,667  
Receivables:                                
Investments sold     10,261,455       2,737,515       20,324,091       33,194,811  
Securities lending income — Affiliated     67,775       71,579              
Dividends     1,424,367       2,010       1,783       1,022  
Tax reclaims     8,695,793       9,078,875             58,724  
Foreign withholding tax claims     1,109                    
Total assets     5,063,758,217       2,053,988,947       327,272,708       925,802,678  
                                 
LIABILITIES                                
Collateral on securities loaned, at value     46,809,183       35,167,990              
Payables:                                
Investments purchased     6,671,521       6,304,406       8,178,151       33,941,547  
Variation margin on futures contracts     629,394       700,487       4,318       36,112  
Capital shares redeemed     455,161       63,363       12,311,287        
Investment advisory fees     2,214,003       878,744       137,561       389,135  
Professional fees     11                    
Total liabilities     56,779,273       43,114,990       20,631,317       34,366,794  
                                 
NET ASSETS   $ 5,006,978,944     $ 2,010,873,957     $ 306,641,391     $ 891,435,884  
                                 
NET ASSETS CONSIST OF:                                
Paid-in capital   $ 6,725,100,524     $ 2,902,990,871     $ 550,692,009     $ 1,420,486,789  
Accumulated loss     (1,718,121,580 )     (892,116,914 )     (244,050,618 )     (529,050,905 )
NET ASSETS   $ 5,006,978,944     $ 2,010,873,957     $ 306,641,391     $ 891,435,884  
                                 
Shares outstanding     135,100,000       77,400,000       11,400,000       34,275,000  
Net asset value   $ 37.06     $ 25.98     $ 26.90     $ 26.01  
Shares authorized     1 billion       482.2 million       295.4 million       127.8 million  
Par value   $ 0.001     $ 0.001     $ 0.001     $ 0.001  

                             
(a)   Securities loaned, at value   $ 43,466,724     $ 32,192,187     $     $  
(b)   Investments, at cost — Unaffiliated   $ 6,172,660,793     $ 2,654,285,614     $ 352,471,045     $ 1,195,921,703  
(c)   Investments, at cost — Affiliated   $ 48,827,828     $ 36,454,211     $ 175,000     $ 387,000  
(d)   Foreign currency, at cost   $ 5,183,057     $ 5,114,591     $ 330,752     $ 1,305,325  
(e)   Foreign currency collateral pledged, at cost   $ 1,049,919     $ 1,135,017     $ 11,014     $ 116,213  

  

See notes to financial statements.               

 

24 2 0 2 0   i  S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

 

Statements of Assets and Liabilities (unaudited) (continued)

February 29, 2020

 

    iShares  
      MSCI Switzerland  
      ETF  
         
ASSETS        
Investments in securities, at value:        
Unaffiliated(a)   $ 1,029,072,259  
Affiliated(b)     526,000  
Cash     853  
Foreign currency, at value(c)     64,647  
Foreign currency collateral pledged:        
Futures contracts(d)     456,955  
Receivables:        
Investments sold     4,432,205  
Dividends     2,233  
Tax reclaims     8,101,456  
Total assets     1,042,656,608  
         
LIABILITIES        
Payables:        
Investments purchased     4,386,427  
Variation margin on futures contracts     270,924  
Capital shares redeemed     99,000  
Investment advisory fees     459,748  
Total liabilities     5,216,099  
         
NET ASSETS   $ 1,037,440,509  
         
NET ASSETS CONSIST OF:        
Paid-in capital   $ 1,040,075,822  
Accumulated loss     (2,635,313 )
NET ASSETS   $ 1,037,440,509  
         
Shares outstanding     27,625,000  
Net asset value   $ 37.55  
Shares authorized     318.625 million  
Par value   $ 0.001  
         
(a) Investments, at cost — Unaffiliated   $ 1,014,521,072  
(b) Investments, at cost — Affiliated   $ 526,000  
(c) Foreign currency, at cost   $ 60,627  
(d) Foreign currency collateral pledged, at cost   $ 458,022  

 

See notes to financial statements.

 

F i n a n c i a l   S t a t e m e n t s 25

 

 

 

 

Statements of Operations (unaudited)

Six Months Ended February 29, 2020

 

    iShares     iShares              
    MSCI     MSCI     iShares     iShares  
    Eurozone     Germany     MSCI Italy     MSCI Spain  
    ETF     ETF     ETF     ETF  
                         
INVESTMENT INCOME                                
Dividends — Unaffiliated   $ 31,065,778     $ 6,763,283     $ 3,081,876     $ 11,250,722  
Dividends — Affiliated     20,085       8,856       1,655       6,250  
Non-cash dividends — Unaffiliated     2,723,154                   4,525,737  
Securities lending income — Affiliated — net     423,530       229,680       23       1,533  
Foreign taxes withheld     (4,296,413 )     (1,000,763 )     (453,607 )     (1,664,234 )
Total investment income     29,936,134       6,001,056       2,629,947       14,120,008  
                                 
EXPENSES                                
Investment advisory fees     14,403,479       5,244,047       736,697       2,267,963  
Total expenses     14,403,479       5,244,047       736,697       2,267,963  
Net investment income     15,532,655       757,009       1,893,250       11,852,045  
                                 
REALIZED AND UNREALIZED GAIN (LOSS)                                
Net realized gain (loss) from:                                
Investments — Unaffiliated     (50,265,378 )     (18,539,789 )     (8,682,380 )     (60,012,070 )
Investments — Affiliated     9,081       180             107  
In-kind redemptions — Unaffiliated     87,522,783       (5,041,736 )     1,657,246       7,528,953  
Futures contracts     2,466,209       852,066       71,447       82,653  
Foreign currency transactions     (75,051 )     (120,088 )     (20,352 )     (16,172 )
Net realized gain (loss)     39,657,644       (22,849,367 )     (6,974,039 )     (52,416,529 )
Net change in unrealized appreciation (depreciation) on:                                
Investments — Unaffiliated     (117,890,277 )     (11,711,516 )     2,210,521       30,830,811  
Investments — Affiliated     3,030       7,521              
Futures contracts     (2,098,132 )     (1,378,783 )     (4,600 )     (96,766 )
Foreign currency translations     144,069       46,065       3,388       13,772  
Net change in unrealized appreciation (depreciation)     (119,841,310 )     (13,036,713 )     2,209,309       30,747,817  
Net realized and unrealized loss     (80,183,666 )     (35,886,080 )     (4,764,730 )     (21,668,712 )
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS   $ (64,651,011 )   $ (35,129,071 )   $ (2,871,480 )   $ (9,816,667 )

  

See notes to financial statements

     

26 2 0 2 0   i  S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

 

Statements of Operations (unaudited) (continued)

Six Months Ended February 29, 2020

 

    iShares  
    MSCI  
    Switzerland  
    ETF  
       
INVESTMENT INCOME        
Dividends — Unaffiliated   $ 1,010,495  
Dividends — Affiliated     4,293  
Foreign taxes withheld     (83,944 )
Total investment income     930,844  
         
EXPENSES        
Investment advisory fees     2,850,690  
Total expenses     2,850,690  
Net investment loss     (1,919,846 )
         
REALIZED AND UNREALIZED GAIN (LOSS)        
Net realized gain (loss) from:        
Investments — Unaffiliated     (6,920,221 )
In-kind redemptions — Unaffiliated     52,867,100  
Futures contracts     1,197,883  
Foreign currency transactions     (156,799 )
Net realized gain     46,987,963  
Net change in unrealized appreciation (depreciation) on:        
Investments — Unaffiliated     (28,260,307 )
Futures contracts     (1,019,745 )
Foreign currency translations     346,867  
Net change in unrealized appreciation (depreciation)     (28,933,185 )
Net realized and unrealized gain     18,054,778  
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS   $ 16,134,932  

 

See notes to financial statements

 

F i n a n c i a l   S t a t e m e n t s 27

 

 

 

 

Statements of Changes in Net Assets

 

    iShares   iShares  
    MSCI Eurozone ETF     MSCI Germany ETF  
      Six Months Ended               Six Months Ended          
      02/29/20       Year Ended       02/29/20       Year Ended  
      (unaudited)       08/31/19       (unaudited)       08/31/19  
                                 
INCREASE (DECREASE) IN NET ASSETS                                
                                 
OPERATIONS                                
Net investment income   $ 15,532,655     $ 188,336,497     $ 757,009     $ 58,499,817  
Net realized gain (loss)     39,657,644       (256,286,586 )     (22,849,367 )     (85,758,069 )
Net change in unrealized appreciation (depreciation)     (119,841,310 )     (541,585,755 )     (13,036,713 )     (329,119,184 )
Net decrease in net assets resulting from operations     (64,651,011 )     (609,535,844 )     (35,129,071 )     (356,377,436 )
                                 
DISTRIBUTIONS TO SHAREHOLDERS(a)                                
Decrease in net assets resulting from distributions to shareholders     (25,144,798 )     (193,219,136 )           (58,677,042 )
                                 
CAPITAL SHARE TRANSACTIONS                                
Net increase (decrease) in net assets derived from capital share transactions     (134,736,419 )     (3,523,968,012 )     43,318,343       (933,488,410 )
                                 
NET ASSETS                                
Total increase (decrease) in net assets     (224,532,228 )     (4,326,722,992 )     8,189,272       (1,348,542,888 )
Beginning of period     5,231,511,172       9,558,234,164       2,002,684,685       3,351,227,573  
End of period   $ 5,006,978,944     $ 5,231,511,172     $ 2,010,873,957     $ 2,002,684,685  

  

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

 

See notes to financial statements.            

     

28 2 0 2 0   i  S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

       

 

 

 

Statements of Changes in Net Assets (continued)

 

    iShares   iShares  
    MSCI Italy ETF   MSCI Spain ETF  
      Six Months               Six Months          
      Ended               Ended          
      02/29/20       Year Ended       02/29/20       Year Ended  
      (unaudited)       08/31/19       (unaudited)       08/31/19  
                                 
INCREASE (DECREASE) IN NET ASSETS                                
                                 
OPERATIONS                                
Net investment income   $ 1,893,250     $ 10,103,171     $ 11,852,045     $ 34,269,377  
Net realized loss     (6,974,039 )     (42,250,592 )     (52,416,529 )     (28,332,161 )
Net change in unrealized appreciation (depreciation)     2,209,309       35,984,260       30,747,817       (96,440,348 )
Net increase (decrease) in net assets resulting from operations     (2,871,480 )     3,836,839       (9,816,667 )     (90,503,132 )
                                 
DISTRIBUTIONS TO SHAREHOLDERS(a)                                
Decrease in net assets resulting from distributions to shareholders     (2,367,408 )     (10,603,637 )     (21,359,646 )     (32,499,998 )
                                 
CAPITAL SHARE TRANSACTIONS                                
Net increase (decrease) in net assets derived from capital share transactions     76,423,518       (163,401,382 )     97,401,049       72,772,356  
                                 
NET ASSETS                                
Total increase (decrease) in net assets     71,184,630       (170,168,180 )     66,224,736       (50,230,774 )
Beginning of period     235,456,761       405,624,941       825,211,148       875,441,922  
End of period   $ 306,641,391     $ 235,456,761     $ 891,435,884     $ 825,211,148  

 

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

 

See notes to financial statements.         

 

F i n a n c i a l   S t a t e m e n t s 29

 

 

 

 

Statements of Changes in Net Assets (continued)

 

    iShares  
    MSCI Switzerland ETF  
      Six Months Ended          
      02/29/20       Year Ended  
      (unaudited)       08/31/19  
                 
INCREASE (DECREASE) IN NET ASSETS                
                 
OPERATIONS                
Net investment income (loss)   $ (1,919,846 )   $ 20,527,971  
Net realized gain     46,987,963       4,112,266  
Net change in unrealized appreciation (depreciation)     (28,933,185 )     53,854,421  
Net increase in net assets resulting from operations     16,134,932       78,494,658  
                 
DISTRIBUTIONS TO SHAREHOLDERS(a)                
Decrease in net assets resulting from distributions to shareholders           (21,371,038 )
                 
CAPITAL SHARE TRANSACTIONS                
Net increase (decrease) in net assets derived from capital share transactions     (116,730,180 )     46,825,869  
                 
NET ASSETS                
Total increase (decrease) in net assets     (100,595,248 )     103,949,489  
Beginning of period     1,138,035,757       1,034,086,268  
End of period   $ 1,037,440,509     $ 1,138,035,757  

 

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

 

See notes to financial statements.   

 

30 2 0 2 0   i  S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

 

Financial Highlights

(For a share outstanding throughout each period)

 

    iShares MSCI Eurozone ETF  
    Six Months Ended                                          
    02/29/20     Year Ended     Year Ended     Year Ended     Year Ended     Year Ended  
    (unaudited)     08/31/19     08/31/18     08/31/17     08/31/16     08/31/15  
                                                 
Net asset value, beginning of period   $ 37.91     $ 41.29     $ 41.71     $ 34.20     $ 36.04     $ 39.98  
Net investment income(a)     0.11       1.05       1.03       0.99       0.92 (b)     0.96  
Net realized and unrealized gain (loss)(c)     (0.79 )     (3.22 )     (0.23 )     7.38       (1.84 )     (3.95 )
Net increase (decrease) from investment operations     (0.68 )     (2.17 )     0.80       8.37       (0.92 )     (2.99 )
Distributions(d)                                                
From net investment income     (0.17 )     (1.21 )     (1.22 )     (0.86 )     (0.92 )     (0.95 )
Total distributions     (0.17 )     (1.21 )     (1.22 )     (0.86 )     (0.92 )     (0.95 )
Net asset value, end of period   $ 37.06     $ 37.91     $ 41.29     $ 41.71     $ 34.20     $ 36.04  
                                                 
Total Return                                                
Based on net asset value     (1.85 )%(e)     (5.22 )%     1.87 %     24.72 %     (2.53 )%(b)     (7.62 )%
                                                 
Ratios to Average Net Assets                                                
Total expenses     0.50 %(f)     0.49 %     0.47 %     0.49 %     0.48 %     0.48 %
Total expenses excluding professional fees for foreign withholding tax claims     N/A       0.49 %     N/A       0.49 %     0.48 %     N/A  
Net investment income     0.54 %(f)     2.74 %     2.36 %     2.63 %     2.69 %(b)     2.50 %
                                                 
Supplemental Data                                                
Net assets, end of period (000)   $ 5,006,979     $ 5,231,511     $ 9,558,234     $ 13,286,216     $ 8,293,591     $ 10,134,616  
Portfolio turnover rate(g)        2 %(e)     6 %     5 %     4 %     4 %     5 %

  

(a) Based on average shares outstanding.
(b) Reflects the one-time, positive effect of foreign withholding tax claims, net of the associated professional fees, which resulted in the following increases for the year ended August 31, 2016:
Net investment income per share by $0.02.
Total return by 0.08%.
Ratio of net investment income to average net assets by 0.06%.
(c) The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.
(d) Distributions for annual periods determined in accordance with U.S. federal income tax regulations. (e) Not annualized.
(f) Annualized.
(g) Portfolio turnover rate excludes in-kind transactions.

 

See notes to financial statements.

 

F i n a n c i a l   H i g h l i g h t s 31

 

 

 

 

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    iShares MSCI Germany ETF  
    Six Months Ended                                
    02/29/20     Year Ended     Year Ended     Year Ended     Year Ended     Year Ended  
    (unaudited)     08/31/19     08/31/18     08/31/17     08/31/16     08/31/15  
                                     
Net asset value, beginning of period   $ 26.28     $ 30.36     $ 30.71     $ 26.18     $ 26.34     $ 28.97  
Net investment income(a)     0.01       0.65       0.64       0.59       0.49       0.58  
Net realized and unrealized gain (loss)(b)       (0.31 )     (3.99 )     (0.16 )     4.54       (0.04 )     (2.70 )
Net increase (decrease) from investment operations     (0.30 )     (3.34 )     0.48       5.13       0.45       (2.12 )
Distributions(c)                                                
From net investment income           (0.74 )     (0.83 )     (0.60 )     (0.61 )     (0.51 )
Total distributions           (0.74 )     (0.83 )     (0.60 )     (0.61 )     (0.51 )
Net asset value, end of period   $ 25.98     $ 26.28     $ 30.36     $ 30.71     $ 26.18     $ 26.34  
                                                 
Total Return                                                
Based on net asset value     (1.14 )%(d)     (11.07 )%     1.52 %     19.63 %     1.81 %     (7.50 )%
                                                 
Ratios to Average Net Assets                                                
Total expenses     0.50 %(e)     0.49 %     0.47 %     0.49 %     0.48 %     0.48 %
Net investment income     0.07 %(e)     2.38 %     1.99 %     2.08 %     1.90 %     2.03 %
                                                 
Supplemental Data                                                
Net assets, end of period (000)   $ 2,010,874     $ 2,002,685     $ 3,351,228     $ 4,809,899     $ 3,596,902     $ 6,607,056  
Portfolio turnover rate(f)     1 %(d)     9 %     6 %     3 %     3 %     3 %

 

(a) Based on average shares outstanding.
(b) The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.
(c) Distributions for annual periods determined in accordance with U.S. federal income tax regulations.
(d) Not annualized.
(e) Annualized.
(f) Portfolio turnover rate excludes in-kind transactions.

 

See notes to financial statements.

 

32 2 0 2 0   i  S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

 

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    iShares MSCI Italy ETF  
    Six Months Ended                                          
    02/29/20     Year Ended     Year Ended     Year Ended     Year Ended     Year Ended  
    (unaudited)     08/31/19     08/31/18     08/31/17(a)   08/31/16(a)   08/31/15(a)
                                                 
Net asset value, beginning of period   $ 26.83     $ 27.18     $ 30.21     $ 22.60     $ 29.50     $ 32.03  
Net investment income(b)     0.18       1.00       0.82       0.57       0.66       0.70  
Net realized and unrealized gain (loss)(c)     0.09       (0.12 )     (2.86 )     7.76       (6.82 )     (2.49 )
Net increase (decrease) from investment operations     0.27       0.88       (2.04 )     8.33       (6.16 )     (1.79 )
Distributions(d)                                                
From net investment income     (0.20 )     (1.23 )     (0.99 )     (0.72 )     (0.72 )     (0.74 )
Return of capital                             (0.02 )      
Total distributions     (0.20 )     (1.23 )     (0.99 )     (0.72 )     (0.74 )     (0.74 )
Net asset value, end of period   $ 26.90     $ 26.83     $ 27.18     $ 30.21     $ 22.60     $ 29.50  
                                                 
Total Return                                                
Based on net asset value     0.96 %(e)     3.46 %     (6.98 )%     37.37 %     (20.97 )%     (5.66 )%
                                                 
Ratios to Average Net Assets                                                
Total expenses     0.50 %(f)     0.49 %     0.47 %     0.49 %     0.48 %     0.48 %
Net investment income     1.28 %(f)     3.72 %     2.64 %     2.59 %     2.54 %     2.34 %
                                                 
Supplemental Data                                                
Net assets, end of period (000)   $ 306,641     $ 235,457     $ 405,625     $ 840,630     $ 461,031     $ 1,077,437  
Portfolio turnover rate(g)        4 %(e)     13 %     10 %     18 %     16 %     22 %

 

(a) Per share amounts reflect a one-for-two reverse stock split effective after the close of trading on November 4, 2016.
(b) Based on average shares outstanding.
(c) The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.
(d) Distributions for annual periods determined in accordance with U.S. federal income tax regulations. (e) Not annualized.
(f) Annualized.
(g) Portfolio turnover rate excludes in-kind transactions.

 

See notes to financial statements.

 

F i n a n c i a l   H i g h l i g h t s 33

 

 

 

 

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    iShares MSCI Spain ETF  
    Six Months Ended                                
    02/29/20     Year Ended     Year Ended     Year Ended     Year Ended     Year Ended  
    (unaudited)     08/31/19     08/31/18     08/31/17     08/31/16     08/31/15  
                                     
Net asset value, beginning of period   $ 26.71     $ 29.85     $ 33.63     $ 26.49     $ 31.96     $ 40.61  
Net investment income(a)     0.37       1.04       0.99       0.94       1.00       1.32  
Net realized and unrealized gain (loss)(b)     (0.39 )     (3.26 )     (3.72 )     7.19       (5.40 )     (8.35 )
Net increase (decrease) from investment operations     (0.02 )     (2.22 )     (2.73 )     8.13       (4.40 )     (7.03 )
                                                 
Distributions(c)                                                
From net investment income     (0.68 )     (0.92 )     (1.05 )     (0.99 )     (1.07 )     (1.62 )
Total distributions     (0.68 )     (0.92 )     (1.05 )     (0.99 )     (1.07 )     (1.62 )
Net asset value, end of period   $ 26.01     $ 26.71     $ 29.85     $ 33.63     $ 26.49     $ 31.96  
                                                 
Total Return                                                
Based on net asset value     (0.33 )%(d)     (7.53 )%     (8.28 )%     31.48 %     (13.82 )%     (17.63 )%
                                                 
Ratios to Average Net Assets                                                
Total expenses     0.50 %(e)     0.50 %     0.47 %     0.49 %     0.48 %     0.48 %
Net investment income     2.61 %(e)     3.65 %     3.02 %     3.10 %     3.53 %     3.70 %
                                                 
Supplemental Data                                                
Net assets, end of period (000)   $ 891,436     $ 825,211     $ 875,442     $ 1,528,533     $ 599,944     $ 1,666,091  
Portfolio turnover rate(f)     7 %(d)     12 %     21 %     16 %     9 %     15 %

 

(a) Based on average shares outstanding.
(b) The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.
(c) Distributions for annual periods determined in accordance with U.S. federal income tax regulations.
(d) Not annualized.
(e) Annualized.
(f) Portfolio turnover rate excludes in-kind transactions.

 

See notes to financial statements.

 

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Financial Highlights (continued) 

(For a share outstanding throughout each period)

 

  iShares MSCI Switzerland ETF  
Six Months Ended                                
    02/29/20     Year Ended     Year Ended     Year Ended     Year Ended     Year Ended  
    (unaudited)     08/31/19     08/31/18     08/31/17     08/31/16     08/31/15  
                                     
Net asset value, beginning of period   $ 37.31     $ 34.91     $ 34.27     $ 30.22     $ 31.90     $ 33.64  
Net investment income (loss)(a)     (0.07 )     0.72       0.66       0.69       0.81       0.83  
Net realized and unrealized gain (loss)(b)     0.31       2.43       0.79       4.11       (1.70 )     (1.77 )
Net increase (decrease) from investment operations     0.24       3.15       1.45       4.80       (0.89 )     (0.94 )
                                                 
Distributions(c)                                                
From net investment income           (0.75 )     (0.81 )     (0.75 )     (0.79 )     (0.80 )
Total distributions           (0.75 )     (0.81 )     (0.75 )     (0.79 )     (0.80 )
Net asset value, end of period   $ 37.55     $ 37.31     $ 34.91     $ 34.27     $ 30.22     $ 31.90  
                                                 
Total Return                                                
Based on net asset value     0.64 %(d)     9.07 %     4.43 %     15.90 %     (2.76 )%     (2.92 )%
                                                 
Ratios to Average Net Assets                                                
Total expenses     0.50 %(e)     0.50 %     0.47 %     0.49 %     0.48 %     0.48 %
Net investment income (loss)     (0.34 )%(e)     2.06 %     1.91 %     2.18 %     2.68 %     2.49 %
                                                 
Supplemental Data                                                
Net assets, end of period (000)   $ 1,037,441     $ 1,138,036     $ 1,034,086     $ 1,259,258     $ 1,091,735     $ 1,200,164  
Portfolio turnover rate(f)     4 %(d)     11 %     9 %     13 %     6 %     7 %

 

(a) Based on average shares outstanding.
(b) The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.
(c) Distributions for annual periods determined in accordance with U.S. federal income tax regulations.
(d) Not annualized.
(e) Annualized.
(f) Portfolio turnover rate excludes in-kind transactions.

 

See notes to financial statements

 

F i n a n c i a l   H i g h l i g h t s 35

 

 

 

 

Notes to Financial Statements (unaudited)

 

1. ORGANIZATION

 

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

 

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

 

      Diversification  
iShares ETF     Classification  
MSCI Eurozone     Diversified  
MSCI Germany     Non-diversified  
MSCI Italy     Non-diversified  
MSCI Spain     Non-diversified  
MSCI Switzerland     Non-diversified  

 

2. SIGNIFICANT ACCOUNTING POLICIES

 

The following significant accounting policies are consistently followed by each Fund in the preparation of its financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies.

 

Investment Transactions and Income Recognition: Investment transactions are accounted for on trade date. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recognized on the ex-dividend date, net of any foreign taxes withheld at source. Any taxes withheld that are reclaimable from foreign tax authorities are reflected in tax reclaims receivable. Distributions received by the Funds may include a return of capital that is estimated by management. Such amounts are recorded as a reduction of the cost of investments or reclassified to capital gains. Upon notification from issuers, some of the dividend income received from a real estate investment trust may be re-designated as a return of capital or capital gain. Non-cash dividends, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Interest income is accrued daily.

 

Foreign Currency Translation: The accounting records of the Funds are maintained in U.S. dollars. Foreign currencies, as well as investment securities and other assets and liabilities denominated in non-U.S. currencies are translated to U.S. dollars using prevailing market rates as quoted by one or more data service providers. Purchases and sales of investments, income receipts and expense payments are translated into U.S. dollars on the respective dates of such transactions.

 

Each Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of investments. Such fluctuations are reflected by the Funds as a component of net realized and unrealized gain (loss) from investments for financial reporting purposes. Each Fund reports realized currency gain (loss) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for U.S. federal income tax purposes.

 

Foreign Taxes: The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which each Fund invests. These foreign taxes, if any, are paid by each Fund and are reflected in its statement of operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of February 29, 2020, if any, are disclosed in the statement of assets and liabilities.

 

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

 

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

 

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

 

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Notes to Financial Statements (unaudited) (continued)

 

3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

 

Investment Valuation Policies: Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date should the reporting period end on a day that the Fund’s listing exchange is not open. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. A fund determines the fair value of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Directors of the Company (the “Board”). The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.

 

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

Equity investments traded on a recognized securities exchange are valued at that day’s last traded price or official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price.
Investments in open-end U.S. mutual funds (including money market funds) are valued at that day’s published net asset value (“NAV”).
Futures contract notional values are determined based on that day’s last reported settlement price on the exchange where the contract is traded.

 

If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of an investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with policies approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee include market approach, income approach and the cost approach. Valuation techniques used under these approaches take into consideration inputs that include but are not limited to (i) attributes specific to the investment; (ii) the principal market for the investment; (iii) the customary participants in the principal market for the investment; (iv) data assumptions by market participants for the investment, if reasonably available; (v) quoted prices for similar investments in active markets; and (vi) other inputs, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or default rates.

 

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.

 

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

 

Fair Value Hierarchy: Various inputs are used in determining the fair value of financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:
  Level 1 – Unadjusted price quotations in active markets for identical assets or liabilities;
  Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; and
  Level 3 – Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, (including the Global Valuation Committee’s assumptions used in determining the fair value of financial instruments).

 

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgement exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The fair value hierarchy for each Fund’s investments is included in its schedule of investments. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

 

4. SECURITIES AND OTHER INVESTMENTS

 

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

 

As of February 29, 2020, any securities on loan were collateralized by cash and/or U.S. government obligations. Cash collateral received was invested in money market funds managed by BlackRock Fund Advisors (“BFA”), the Funds’ investment adviser, or its affiliates and is disclosed in the schedules of investments. Any non-cash collateral

 

N o t e s   t o   F i n a n c i a l   S t a t e m e n t s 37

 

 

 

 

Notes to Financial Statements (unaudited) (continued)

 

received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan for each Fund, if any, are also disclosed in its schedule of investments. The market value of any securities on loan as of February 29, 2020 and the value of the related cash collateral are disclosed in the statements of assets and liabilities.

 

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

 

The following table is a summary of the securities lending agreements by counterparty which are subject to offset under an MSLA as of February 29, 2020:

 

    Market Value of     Cash Collateral     Non-Cash Collateral        
iShares ETF and Counterparty   Securities on Loan     Received (a)    Received     Net Amount  
MSCI Eurozone                                
BNP Paribas Prime Brokerage International Ltd.   $ 2,239,440     $ 2,239,440     $     $  
Citigroup Global Markets Inc.     9,952,804       9,952,804              
Goldman Sachs & Co.     7,034,721       7,034,721              
Morgan Stanley & Co. LLC     24,239,759       24,239,759              
    $ 43,466,724     $ 43,466,724     $     $  
MSCI Germany                                
Goldman Sachs & Co.   $ 6,817,740     $ 6,817,740     $     $  
Morgan Stanley & Co. LLC     25,374,447       25,374,447              
    $ 32,192,187     $ 32,192,187     $     $  

 

  (a)   Collateral received in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by each Fund is disclosed in the Fund’s statement of assets and liabilities.

 

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

 

5. DERIVATIVE FINANCIAL INSTRUMENTS

 

Futures Contracts: Each Fund’s use of futures contracts is generally limited to cash equitization. This involves the use of available cash to invest in index futures contracts in order to gain exposure to the equity markets represented in or by the Fund’s underlying index and is intended to allow the Fund to better track its underlying index. Futures contracts are standardized, exchange-traded agreements to buy or sell a specific quantity of an underlying instrument at a set price on a future date. Depending on the terms of a contract, a futures contract is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date.

 

Upon entering into a futures contract, a fund is required to pledge to the executing broker which holds segregated from its own assets, an amount of cash, U.S. government securities or other high-quality debt and equity securities equal to the minimum initial margin requirements of the exchange on which the contract is traded. Securities deposited as initial margin, if any, are designated in the schedule of investments and cash deposited, if any, is shown as cash pledged for futures contracts in the statement of assets and liabilities.

 

Pursuant to the contract, a fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation or depreciation and, if any, shown as variation margin receivable or payable on futures contracts in the statement of assets and liabilities. When the contract is closed, a realized gain or loss is recorded in the statement of operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. Losses may arise if the notional value of a futures contract decreases due to an unfavorable change in the market rates or values of the underlying instrument during the term of the contract or if the counterparty does not perform under the contract. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and the assets underlying such contracts.

 

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Notes to Financial Statements (unaudited) (continued)

 

6. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

 

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

 

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

 

Aggregate Average Daily Net Assets   Investment Advisory Fee  
First $7 billion     0.59 %
Over $7 billion, up to and including $11 billion     0.54  
Over $11 billion, up to and including $24 billion     0.49  
Over $24 billion, up to and including $48 billion     0.44  
Over $48 billion, up to and including $72 billion     0.40  
Over $72 billion, up to and including $96 billion     0.36  
Over $96 billion     0.32  

 

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

 

Securities Lending: The U.S. Securities and Exchange Commission (the “SEC”) has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan in a money market fund managed by BFA, or its affiliates, however, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees each Fund bears to an annual rate of 0.04% (the “collateral investment fees”). Securities lending income is equal to the total of income earned from the reinvestment of cash collateral (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. Each Fund retains a portion of securities lending income and remits the remaining portion to BTC as compensation for its services as securities lending agent.

 

Pursuant to the current securities lending agreement, each Fund retains 82% of securities lending income (which excludes collateral investment fees) and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

 

In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across all 1940 Act iShares exchange-traded funds (the “iShares ETF Complex”) in that calendar year exceeds a specified threshold, each Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year 85% of securities lending income (which excludes collateral investment fees), and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

 

The share of securities lending income earned by each Fund is shown as securities lending income – affiliated – net in its statement of operations. For the six months ended February 29, 2020, the Funds paid BTC the following amounts for securities lending agent services:

 

    Fees Paid  
iShares ETF   to BTC  
MSCI Eurozone   $ 99,575  
MSCI Germany     56,520  
MSCI Italy     7  
MSCI Spain     486  

 

Officers and Directors: Certain officers and/or directors of the Company are officers and/or directors of BlackRock or its affiliates.

 

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

 

For the six months ended February 29, 2020, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:

 

                Net Realized  
iShares ETF   Purchases     Sales     Gain (Loss)  
MSCI Eurozone   $ 59,409,495     $ 1,284,467     $ (1,400,562 )
MSCI Germany     3,978,637       1,128,707       (1,988,350 )
MSCI Italy     731,936       5,798,209       (3,507,297 )
MSCI Spain     17,465,603       6,480,344       (7,529,714 )
MSCI Switzerland     25,787,041       7,839,047       (1,001,376 )

 

N o t e s   t o   F i n a n c i a l   S t a t e m e n t s 39

 

 

 

 

Notes to Financial Statements (unaudited) (continued)

 

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

 

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

 

7. PURCHASES AND SALES

 

For the six months ended February 29, 2020, purchases and sales of investments, excluding in-kind transactions and short-term investments, were as follows:

 

iShares ETF   Purchases     Sales  
MSCI Eurozone   $ 117,321,335     $ 117,572,061  
MSCI Germany     32,755,024       16,144,735  
MSCI Italy     17,324,063       12,404,249  
MSCI Spain     69,393,729       66,951,029  
MSCI Switzerland     43,044,650       42,375,299  

 

For the six months ended February 29, 2020, in-kind transactions were as follows:

 

    In-kind     In-kind  
iShares ETF   Purchases     Sales  
MSCI Eurozone   $ 542,165,082     $ 675,203,828  
MSCI Germany     314,772,792       271,788,008  
MSCI Italy     91,752,731       20,298,749  
MSCI Spain     171,979,941       90,935,230  
MSCI Switzerland     128,814,278       241,954,732  

 

8. INCOME TAX INFORMATION

 

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

 

Management has analyzed tax laws and regulations and their application to the Funds as of February 29, 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.

 

As of August 31, 2019, the Funds had non-expiring capital loss carryforwards available to offset future realized capital gains as follows:

 

iShares ETF   Non-Expiring  
MSCI Eurozone   $ 485,612,043  
MSCI Germany     176,437,193  
MSCI Italy     185,184,703  
MSCI Spain     149,483,044  
MSCI Switzerland     48,001,982  

 

A fund may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” Such fund may elect to mark-to-market annually the shares of each passive foreign investment company and would be required to distribute to shareholders any such marked-to-market gains.

 

As of February 29, 2020, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:

 

                      Net Unrealized  
          Gross Unrealized     Gross Unrealized     Appreciation  
iShares ETF   Tax Cost     Appreciation     Depreciation     (Depreciation)  
MSCI Eurozone   $ 6,312,246,803     $ 389,115,669     $ (1,666,139,165 )   $ (1,277,023,496 )
MSCI Germany     2,727,499,852       119,908,917       (813,142,158 )     (693,233,241 )
MSCI Italy     359,817,828       16,420,279       (69,644,329 )     (53,224,050 )
MSCI Spain     1,220,313,925       43,587,836       (372,854,450 )     (329,266,614 )
MSCI Switzerland     1,028,561,025       100,220,889       (100,030,507 )     190,382  

 

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Notes to Financial Statements (unaudited) (continued)

 

9. PRINCIPAL RISKS

 

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

 

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

 

Market Risk: Market risk arises mainly from uncertainty about future values of financial instruments influenced by price, currency and interest rate movements. It represents the potential loss a fund may suffer through holding market positions in the face of market movements. A fund is exposed to market risk by its investment in equity, fixed income and/or financial derivative instruments or by its investment in underlying funds. The fair value of securities held by a fund may decline due to general market conditions, economic trends or events that are not specifically related to the issuers of the securities including local, regional or global political, social or economic instability or to factors that affect a particular industry or group of industries. 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. The extent of a fund’s exposure to market risk is the market value of the investments held as shown in the fund’s schedule of investments.

 

Investing in the securities of non-U.S. issuers involves certain considerations and risks not typically associated with securities of U.S. issuers. Such risks include, but are not limited to: differences in accounting, auditing and financial reporting standards; more substantial governmental involvement in the economy; higher inflation rates, greater social, economic and political uncertainties; possible nationalization or expropriation of assets; less availability of public information about issuers; imposition of withholding or other taxes; higher transaction and custody costs and delays in settlement procedures; and lower level of regulation of the securities markets and issuers. Non-U.S. securities may be less liquid, more difficult to value, and have greater price volatility due to exchange rate fluctuations. These and other risks are heightened for investments in issuers from countries with less developed capital markets.

 

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 impact of the pandemic may be short term or may last for an extended period of time.

 

Credit Risk: Credit risk is the risk that an issuer or guarantor of debt instruments or the counterparty to a financial transaction, including derivatives contracts, repurchase agreements or loans of portfolio securities, is unable or unwilling to make timely interest and/or principal payments or to otherwise honor its obligations. BFA and its affiliates manage counterparty credit risk by entering into transactions only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose a fund to issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of a fund’s exposure to credit and counterparty risks with respect to those financial assets is approximated by their value recorded in its statement of assets and liabilities.

 

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

 

When a fund concentrates its investments in issuers located in a single country or a limited number of countries, it assumes the risk that economic, regulatory, political and social conditions in that country or those countries may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio.

 

When a fund concentrates its investments in securities within a single or limited number of market sectors, it assumes the risk that economic, regulatory, political and social conditions affecting such sectors may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio.

 

10. CAPITAL SHARE TRANSACTIONS

 

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

 

N o t e s   t o   F i n a n c i a l   S t a t e m e n t s 41

 

 

 

 

Notes to Financial Statements (unaudited) (continued)

 

Transactions in capital shares were as follows:

 

    Six Months Ended     Year Ended  
  02/29/20     08/31/19  
iShares ETF     Shares       Amount       Shares       Amount  
MSCI Eurozone                                
Shares sold     13,700,000     $ 549,085,543       9,500,000     $ 367,902,543  
Shares redeemed     (16,600,000 )     (683,821,962 )     (103,000,000 )     (3,891,870,555 )
Net decrease     (2,900,000 )   $ (134,736,419 )     (93,500,000 )   $ (3,523,968,012 )
MSCI Germany                                
Shares sold     10,800,000     $ 317,241,894       12,300,000     $ 337,288,125  
Shares redeemed     (9,600,000 )     (273,923,551 )     (46,500,000 )     (1,270,776,535 )
Net increase(decrease)     1,200,000     $ 43,318,343       (34,200,000 )   $ (933,488,410 )
MSCI Italy                                
Shares sold     3,375,000     $ 97,469,039       13,050,000     $ 348,776,931  
Shares redeemed     (750,000 )     (21,045,521 )     (19,200,000 )     (512,178,313 )
Net increase(decrease)     2,625,000     $ 76,423,518       (6,150,000 )   $ (163,401,382 )
MSCI Spain                                
Shares sold     6,750,000     $ 193,540,553       27,900,000     $ 803,958,247  
Shares redeemed     (3,375,000 )     (96,139,504 )     (26,325,000 )     (731,185,891 )
Net increase     3,375,000     $ 97,401,049       1,575,000     $ 72,772,356  
MSCI Switzerland                                
Shares sold     3,500,000     $ 132,582,113       9,500,000     $ 333,118,780  
Shares redeemed     (6,375,000 )     (249,312,293 )     (8,625,000 )     (286,292,911 )
Net increase(decrease)     (2,875,000 )   $ (116,730,180 )     875,000     $ 46,825,869  

 

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

 

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

 

11.  FOREIGN WITHHOLDING TAX CLAIMS

 

The iShares MSCI Eurozone ETF has filed claims to recover taxes withheld by Finland on dividend income on the basis that Finland had purportedly violated certain provisions in the Treaty on the Functioning of the European Union. The Fund has recorded receivables for all recoverable taxes withheld by Finland based upon recent favorable determinations made by the Finnish tax authorities. Professional and other fees associated with the filing of these claims for foreign withholding taxes have been approved by the Board as appropriate expenses of the Fund. Withholding tax claims may be for the current year and potentially for a limited number of prior calendar years, depending upon statutes of limitation on taxes. The Fund continues to evaluate developments in Finland for potential impact to the receivables and payables recorded. Finnish tax claim receivables and related liabilities are disclosed in the statement of assets and liabilities.

 

The Internal Revenue Service (“IRS”) has issued guidance to address U.S. income tax liabilities attributable to fund shareholders resulting from the recovery of foreign taxes withheld in prior years. These withheld foreign taxes were passed through to shareholders in the form of foreign tax credits in the year the taxes were withheld. Assuming there are sufficient foreign taxes paid which the Fund is able to pass through to its shareholders as a foreign tax credit in the current year, the Fund will be able to offset the prior years’ withholding taxes recovered against the foreign taxes paid in the current year. Accordingly, no federal income tax liability is recorded by the Fund.

 

12.  LEGAL PROCEEDINGS

 

On June 16, 2016, investors in certain iShares funds (iShares Core S&P Small-Cap ETF, iShares Russell 1000 Growth ETF, iShares Core S&P 500 ETF, iShares Russell Mid-Cap Growth ETF, iShares Russell Mid-Cap ETF, iShares Russell Mid-Cap Value ETF, iShares Select Dividend ETF, iShares Morningstar Mid-Cap ETF, iShares Morningstar Large-Cap ETF, iShares U.S. Aerospace & Defense ETF and iShares Preferred and Income Securities ETF) filed a class action lawsuit against iShares Trust, BlackRock, Inc. and certain of its advisory affiliates, and certain directors/trustees and officers of the Funds (collectively, “Defendants”) in California State Court. The lawsuit alleges the Defendants violated federal securities laws by failing to adequately disclose in the prospectuses issued by the funds noted above the risks of using stop-loss orders in the event of a ‘flash crash’, such as the one that occurred on May 6, 2010. On September 18, 2017, the court issued a Statement of Decision holding that the

 

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Notes to Financial Statements (unaudited) (continued)

 

Plaintiffs lack standing to assert their claims. On October 11, 2017, the court entered final judgment dismissing all of the Plaintiffs’ claims with prejudice. In an opinion dated January 23, 2020, the California Court of Appeal affirmed the dismissal of Plaintiffs’ claims. On March 3, 2020, plaintiffs filed a petition for review by the California Supreme Court.

 

13. SUBSEQUENT EVENTS

 

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

 

N o t e s   t o   F i n a n c i a l   S t a t e m e n t s 43

 

 

 

 

Statement Regarding Liquidity Risk Management Program

 

The Securities and Exchange Commission adopted Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”) to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders.

 

The Board of Directors (the “Board”) of iShares MSCI Eurozone ETF, iShares MSCI Germany ETF, iShares MSCI Italy ETF, iShares MSCI Spain ETF and iShares MSCI Switzerland ETF met on December 3, 2019 (the “Meeting”) to review the liquidity risk management program (the “Program”) applicable to the iShares Funds (each, a “Fund”) pursuant to the Liquidity Rule. The Board has appointed BlackRock FundAdvisors (“BlackRock”), the investment adviser to the Funds, as the program administrator for each Fund’s Program, as applicable. BlackRock has delegated oversight of the Program to the 40 Act Liquidity Risk Management Committee (the “Committee”). At the Meeting, the Committee, on behalf of BlackRock, provided the Board with a report that addressed the operation of the Program and assessed its adequacy and effectiveness of implementation, including the operation of each Fund’s Highly Liquid Investment Minimum (“HLIM”) where applicable, and any material changes to the Program (the “Report”). The Report covered the period from December 1, 2018 through September 30, 2019 (the “Program Reporting Period”).

 

The Report described the Program’s liquidity classification methodology for categorizing a Fund’s investments (including derivative transactions) into one of four liquidity buckets. It also described BlackRock’s methodology in establishing a Fund’s HLIM and noted that the Committee reviews and ratifies the HLIM assigned to each Fund no less frequently than annually.

 

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

 

 

a)

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

 

 

b)  

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

 

 

c)  

Holdings of cash and cash equivalents, as well as borrowing arrangements. The Committee considered that ETFs generally do not hold more than de minimus amounts of cash. Funds may borrow for temporary or emergency purposes, including to meet payments due from redemptions or to facilitate the settlement of securities or other transactions.

 

 

d)  

The relationship between an ETF’s portfolio liquidity and the way in which, and the prices and spreads at which, ETF shares trade, including the efficiency of the arbitrage function and the level of active participation by market participants, including authorized participants. The Committee monitored the prevailing bid/ask spread and the ETF price premium (or discount) to NAV for all ETFs and reviewed any persistent deviations from long-term averages.

 

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

 

There were no material changes to the Program during the Program Reporting Period. The Report provided to the Board stated that the Committee concluded that based on the operation of the functions, as described in the Report, the Program is operating as intended and is effective in implementing the requirements of the Liquidity Rule.

 

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Supplemental Information (unaudited)

 

Section 19(a) Notices

 

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

 

    Total Cumulative Distributions
for the Fiscal Year-to-Date
    % Breakdown of the Total Cumulative
Distributions for the Fiscal Year-to-Date
 

iShares ETF 

 

Net
Investment
Income

   

Net
Realized
Capital Gains

   

Return of
Capital

   

Total Per
Share

   

Net
Investment

Income

   

Net
Realized Capital
Gains

   

Return of
Capital

   

Total Per
Share

 
MSCI Eurozone(a)   $ 0.147179     $     $ 0.022489     $ 0.169668       87 %     %     13 %     100 %
MSCI Spain(a)     0.528020             0.150064       0.678084       78             22       100  

 

(a) The Fund estimates that it has distributed more than its net investment income and net realized capital gains; therefore, a portion of the distribution may be a return of capital. A return of capital may occur, for example, when some or all of the shareholder’s investment in the Fund is returned to the shareholder. A return of capital does not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”. When distributions exceed total return performance, the difference will incrementally reduce the Fund’s net asset value per share.

 

S u p p l e m e n t a l   I n f o r m a t i o n 45

 

 

 

 

General Information

 

Electronic Delivery

 

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

 

To enroll in electronic delivery:

 

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

 

Householding

 

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

 

Availability of Quarterly Schedule of Investments

 

The iShares Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT, and for reporting periods ended prior to March 31, 2019, filed such information on Form N-Q. The iShares Funds’ Forms N-Q are available on the SEC’s website at sec.gov. The iShares Funds also disclose their complete schedule of portfolio holdings on a daily basis on the iShares website at iShares.com.

 

Availability of Proxy Voting Policies and Proxy Voting Records

 

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

 

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Glossary of Terms Used in this Report

 

Portfolio Abbreviations - Equity

 

NVS Non-Voting Shares

 

G l o s s a r y   o f   T e r m s   U s e d   i n   t h i s   R e p o r t 47

  

 

 

 

 

 

 

 

 

 

 

 

Want to know more? 

iShares.com   |  1-800-474-2737

 

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

 

Investing involves risk, including possible loss of principal.

 

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

 

The iShares Funds are not sponsored, endorsed, issued, sold or promoted by MSCI Inc., nor does this company make any representation regarding the advisability of investing in the iShares Funds. BlackRock is not affiliated with the company listed above.

 

©2020 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.

 

iS-SAR-807-0220

 

   

 

 

 

 

FEBRUARY 29, 2020

 

2020 Semi-Annual Report
(Unaudited)

 

iShares, Inc.

 

iShares MSCI Hong Kong ETF | EWH | NYSE Arca
iShares MSCI Japan Small-Cap ETF | SCJ | NYSE Arca
iShares MSCI Malaysia ETF | EWM | NYSE Arca
iShares MSCI Pacific ex Japan ETF | EPP | NYSE Arca
iShares MSCI Singapore ETF | EWS | NYSE Arca
iShares MSCI Taiwan ETF | EWT | NYSE Arca
iShares MSCI Thailand ETF | THD | NYSE Arca

 

 

 

 

 

 

 

 

 

 

 

 

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

 

You may elect to receive all future reports in paper free of charge. If you hold accounts through a financial intermediary, you can follow the instructions included with this disclosure, if applicable, or contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. Please note that not all financial intermediaries may offer this service. Your election to receive reports in paper will apply to all funds held with your financial intermediary.

 

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive electronic delivery of shareholder reports and other communications by contacting your financial intermediary. Please note that not all financial intermediaries may offer this service. 

 

 

 

 

 

 

Fund Summary as of February 29, 2020 iShares® MSCI Hong Kong ETF

 

Investment Objective

 

The iShares MSCI Hong Kong ETF (the “Fund”) seeks to track the investment results of an index composed of Hong Kong equities, as represented by the MSCI Hong Kong Index (the "Index"). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

 

Performance

 

          Average Annual Total Returns     Cumulative Total Returns  
    6 Months     1 Year     5 Years     10 Years     1 Year     5 Years     10 Years  
Fund NAV   0.17 %   (9.36 )%   4.18 %   7.20 %   (9.36 )%   22.73 %   100.48 %
Fund Market   1.61     (8.58 )   4.34     7.26     (8.58 )   23.67     101.56  
Index   0.41     (8.87 )   4.79     7.80     (8.87 )   26.34     111.85  

 

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 10 for more information.

 

Expense Example

 

Actual     Hypothetical 5% Return        
Beginning     Ending     Expenses     Beginning     Ending     Expenses     Annualized  
Account Value     Account Value     Paid During     Account Value     Account Value     Paid During     Expense  
(09/01/19)   (02/29/20)   the Period (a)   (09/01/19)   (02/29/20)   the Period (a)   Ratio  
$ 1,000.00     $ 1,001.70     $ 2.49     $ 1,000.00     $ 1,022.40     $ 2.51     0.50 %

 

(a) Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 10 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR
    Percent of  
Sector   Total Investments (a)
Financials     38.9 %
Real Estate     22.2  
Industrials     13.0  
Utilities     11.0  
Consumer Discretionary     7.5  
Consumer Staples     3.7  
Communication Services.     1.7  
Health Care     1.3  
Information Technology     0.7  
TEN LARGEST HOLDINGS
    Percent of  
Security   Total Investments (a)
AIA Group Ltd.     24.4 %
Hong Kong Exchanges & Clearing Ltd.     8.0  
CK Hutchison Holdings Ltd.     4.8  
Sun Hung Kai Properties Ltd.     4.6  
Hong Kong & China Gas Co. Ltd.     4.0  
Link REIT     4.0  
CLP Holdings Ltd.     3.5  
CK Asset Holdings Ltd.     3.3  
Hang Seng Bank Ltd.     3.3  
Galaxy Entertainment Group Ltd.     2.9  

 

(a) Excludes money market funds.

 

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Fund Summary as of February 29, 2020 iShares® MSCI Japan Small-Cap ETF

 

Investment Objective

 

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

 

Performance

 

        Average Annual Total Returns     Cumulative Total Returns  
    6 Months     1 Year     5 Years     10 Years     1 Year     5 Years     10 Years  
Fund NAV   (4.64 )%   (4.91 )%   5.05 %   6.88 %   (4.91 )%   27.94 %   94.59 %
Fund Market   (5.66 )   (6.15 )   4.82     6.76     (6.15 )   26.52     92.37  
Index   (4.56 )   (4.71 )   5.36     7.25     (4.71 )   29.83     101.35  

 

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 10 for more information.

 

Expense Example 

 

Actual     Hypothetical 5% Return        
Beginning     Ending     Expenses     Beginning     Ending     Expenses     Annualized  
Account Value     Account Value     Paid During     Account Value     Account Value     Paid During     Expense  
(09/01/19)   (02/29/20)   the Period (a)   (09/01/19)   (02/29/20)   the Period (a)   Ratio  
$ 1,000.00     $ 953.60     $ 2.43     $ 1,000.00     $ 1,022.40     $ 2.51     0.50

  

(a) Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 10 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR
    Percent of  
Sector   Total Investments (a)
Industrials     24.0 %
Consumer Discretionary     14.6  
Real Estate     13.6  
Information Technology     12.8  
Consumer Staples     9.8  
Materials     8.7  
Financials     6.3  
Health Care     5.4  
Communication Services     3.1  
Utilities     1.0  
Energy     0.7  
TEN LARGEST HOLDINGS
    Percent of  
Security   Total Investments (a)
GLP J-REIT     0.7 %
TIS Inc.     0.7  
Nihon M&A Center Inc.     0.6  
Advance Residence Investment Corp.     0.6  
Sojitz Corp.     0.6  
Lasertec Corp.     0.6  
Taiyo Yuden Co. Ltd.     0.5  
Haseko Corp.     0.5  
Activia Properties Inc.     0.5  
Sekisui House Reit Inc.     0.5  

 

(a) Excludes money market funds.

  

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Fund Summary as of February 29, 2020 iShares® MSCI Malaysia ETF

 

Investment Objective

 

The iShares MSCI Malaysia ETF (the “Fund”) seeks to track the investment results of an index composed of Malaysian equities, as represented by the MSCI Malaysia Index (the "Index"). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

 

Performance

 

        Average Annual Total Returns     Cumulative Total Returns  
    6 Months     1 Year     5 Years     10 Years     1 Year     5 Years     10 Years  
Fund NAV   (8.00 )%   (15.00 )%   (4.90 )%   1.46 %   (15.00 )%   (22.23 )%   15.59 %
Fund Market   (7.74 )   (14.11 )   (4.91 )   1.41     (14.11 )   (22.25 )   15.05  
Index   (7.79 )   (14.59 )   (4.60 )   1.84     (14.59 )   (20.98 )   20.05  

 

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 10 for more information.

 

Expense Example

 

Actual     Hypothetical 5% Return        
Beginning     Ending     Expenses     Beginning     Ending     Expenses     Annualized  
Account Value     Account Value     Paid During     Account Value     Account Value     Paid During     Expense  
(09/01/19)   (02/29/20)   the Period (a)   (09/01/19)   (02/29/20)   the Period (a)   Ratio  
$ 1,000.00     $ 920.00     $ 2.39     $ 1,000.00     $ 1,022.40     $ 2.51     0.50 %

 

(a) Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 10 for more information.

  

Portfolio Information

 

ALLOCATION BY SECTOR
    Percent of  
Sector   Total Investments (a)
Financials     32.2 %
Consumer Staples     15.2  
Utilities     12.4  
Industrials     10.1  
Communication Services     9.6  
Health Care     7.1  
Materials     4.5  
Consumer Discretionary     4.5  
Energy     4.4  
TEN LARGEST HOLDINGS
    Percent of  
Security   Total Investments (a)
Public Bank Bhd     12.3 %
Tenaga Nasional Bhd     8.8  
Malayan Banking Bhd     7.7  
CIMB Group Holdings Bhd     5.6  
Petronas Gas Bhd     3.1  
Petronas Chemicals Group Bhd     3.0  
DiGi.Com Bhd     3.0  
Maxis Bhd     3.0  
IHH Healthcare Bhd     2.9  
Dialog Group Bhd     2.8  

 

(a) Excludes money market funds.

 

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Fund Summary as of February 29, 2020 iShares® MSCI Pacific ex Japan ETF

 

Investment Objective

 

The iShares MSCI Pacific ex Japan ETF (the “Fund”) seeks to track the investment results of an index composed of Pacific region developed market equities, excluding Japan, as represented by the MSCI Pacific ex Japan Index (the "Index"). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

 

Performance

 

        Average Annual Total Returns     Cumulative Total Returns  
    6 Months     1 Year     5 Years     10 Years     1 Year     5 Years     10 Years  
Fund NAV   (2.90 )%   (3.79 )%   2.34 %   4.78 %   (3.79 )%   12.27 %   59.44 %
Fund Market   (2.29 )   (3.38 )   2.43     4.83     (3.38 )   12.73     60.23  
Index   (2.70 )   (3.40 )   2.76     5.21     (3.40 )   14.60     66.17  

 

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 10 for more information.

 

Expense Example

 

Actual     Hypothetical 5% Return        
Beginning     Ending     Expenses     Beginning     Ending     Expenses     Annualized  
Account Value     Account Value     Paid During     Account Value     Account Value     Paid During     Expense  
(09/01/19)   (02/29/20)   the Period (a)   (09/01/19)   (02/29/20)   the Period (a)   Ratio  
$ 1,000.00     $ 971.00     $ 2.35     $ 1,000.00     $ 1,022.50     $ 2.41     0.48 %

 

(a) Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 10 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR
    Percent of  
Sector   Total Investments (a)
Financials     37.7 %
Real Estate     13.1  
Industrials     9.3  
Materials     8.9  
Health Care     8.3  
Consumer Discretionary     5.9  
Consumer Staples     5.1  
Utilities     4.9  
Communication Services     3.0  
Energy     3.0  
Information Technology     0.8  
GEOGRAPHIC ALLOCATION
    Percent of  
Country/Geographic Region   Total Investments (a)
Australia     56.2 %
Hong Kong     30.4  
Singapore     10.7  
New Zealand     2.4  
China     0.3  
Malta     0.0 (b)

 

(a) Excludes money market funds.
  (b) Rounds to less than 0.1%.

 

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Fund Summary as of February 29, 2020 iShares® MSCI Singapore ETF

 

Investment Objective

 

The iShares MSCI Singapore ETF (the “Fund”) seeks to track the investment results of an index composed of Singaporean equities, as represented by the MSCI Singapore 25/50 Index (the "Index"). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

 

Performance

 

        Average Annual Total Returns     Cumulative Total Returns  
    6 Months     1 Year     5 Years     10 Years     1 Year     5 Years     10 Years  
Fund NAV   (2.63 )%   (3.61 )%   0.59 %   3.73 %   (3.61 )%   3.01 %   44.28 %
Fund Market   (1.47 )   (2.39 )   0.80     3.85     (2.39 )   4.09     45.97  
Index   (2.40 )   (3.21 )   1.04     4.12     (3.21 )   5.31     49.68  

 

Index performance through November 30, 2016 reflects the performance of the MSCI Singapore Index. Index performance beginning on December 1, 2016 reflects the performance of the MSCI Singapore 25/50 Index.

 

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 10 for more information.

 

Expense Example 

 

Actual     Hypothetical 5% Return        
Beginning     Ending     Expenses     Beginning     Ending     Expenses     Annualized  
Account Value     Account Value     Paid During     Account Value     Account Value     Paid During     Expense  
(09/01/19)   (02/29/20)   the Period (a)   (09/01/19)   (02/29/20)   the Period (a)   Ratio  
$ 1,000.00     $ 973.70     $ 2.45     $ 1,000.00     $ 1,022.40     $ 2.51     0.50 %

 

(a) Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 10 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR
    Percent of  
Sector   Total Investments (a)
Financials     49.0 %
Real Estate     17.2  
Industrials     16.9  
Communication Services     6.2  
Consumer Discretionary     4.3  
Consumer Staples     3.9  
Information Technology     2.5  
TEN LARGEST HOLDINGS
    Percent of  
Security   Total Investments (a)
DBS Group Holdings Ltd.     18.0 %
Oversea-Chinese Banking Corp. Ltd.     14.6  
United Overseas Bank Ltd.     12.9  
Singapore Telecommunications Ltd.     4.5  
Keppel Corp. Ltd.     4.5  
Ascendas REIT     4.3  
Wilmar International Ltd.     3.9  
Singapore Exchange Ltd.     3.5  
Singapore Technologies Engineering Ltd.     3.4  
Genting Singapore Ltd.     2.6  

 

(a) Excludes money market funds.

 

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Fund Summary as of February 29, 2020 iShares® MSCI Taiwan ETF

 

Investment Objective

 

The iShares MSCI Taiwan ETF (the “Fund”) seeks to track the investment results of an index composed of Taiwanese equities, as represented by the MSCI Taiwan 25/50 Index (the "Index"). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

 

Performance

 

        Average Annual Total Returns     Cumulative Total Returns  
    6 Months     1 Year     5 Years     10 Years     1 Year     5 Years     10 Years  
Fund NAV   12.21 %   15.65 %   6.64 %   7.73 %   15.65 %   37.92 %   110.49 %
Fund Market   10.23     15.84     6.13     7.50     15.84     34.65     106.03  
Index   12.55     16.30     7.33     8.31     16.30     42.43     122.08  

 

Index performance through November 30, 2016 reflects the performance of the MSCI Taiwan Index. Index performance beginning on December 1, 2016 reflects the performance of the MSCI Taiwan 25/50 Index.

 

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 10 for more information.

 

Expense Example

 

Actual     Hypothetical 5% Return        
Beginning     Ending     Expenses     Beginning     Ending     Expenses     Annualized  
Account Value     Account Value     Paid During     Account Value     Account Value     Paid During     Expense  
(09/01/19)   (02/29/20)   the Period (a)   (09/01/19)   (02/29/20)   the Period (a)   Ratio  
$ 1,000.00     $ 1,122.10     $ 3.06     $ 1,000.00     $ 1,022.00     $ 2.92     0.58 %

 

(a) Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 10 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR
    Percent of  
Sector   Total Investments (a)
Information Technology     55.1 %
Financials     20.2  
Materials     8.9  
Consumer Discretionary     4.7  
Communication Services     3.8  
Consumer Staples     3.2  
Industrials     2.8  
Other (each representing less than 1%)     1.3  
TEN LARGEST HOLDINGS
    Percent of  
Security   Total Investments (a)
Taiwan Semiconductor Manufacturing Co. Ltd.     22.8 %
Hon Hai Precision Industry Co. Ltd.     5.4  
MediaTek Inc.     2.9  
Largan Precision Co. Ltd.     2.3  
CTBC Financial Holding Co. Ltd.     2.2  
Chunghwa Telecom Co. Ltd.     2.1  
Formosa Plastics Corp.     2.1  
Mega Financial Holding Co. Ltd.     1.9  
Uni-President Enterprises Corp.     1.9  
Nan Ya Plastics Corp.     1.8  

 

(a) Excludes money market funds.

 

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Fund Summary as of February 29, 2020 iShares® MSCI Thailand ETF

 

Investment Objective

 

The iShares MSCI Thailand ETF (the “Fund”) seeks to track the investment results of a broad-based index composed of Thai equities, as represented by the MSCI Thailand IMI 25/50 Index (the "Index"). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

 

Performance

 

          Average Annual Total Returns     Cumulative Total Returns  
    6 Months     1 Year     5 Years     10 Years     1 Year     5 Years     10 Years  
Fund NAV   (22.00 )%   (20.43 )%   (0.51 )%   8.02 %   (20.43 )%   (2.51 )%   116.31 %
Fund Market   (21.25 )   (19.62 )   (0.39 )   8.05     (19.62 )   (1.92 )   116.89  
Index   (21.89 )   (20.17 )   (0.24 )   8.40     (20.17 )   (1.18 )   123.93  

  

Index performance through February 11, 2013 reflects the performance of the MSCI Thailand Investable Market Index. Index performance beginning on February 12, 2013 reflects the performance of the MSCI Thailand IMI 25/50 Index.

 

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 10 for more information.

 

Expense Example

 

Actual     Hypothetical 5% Return        
Beginning     Ending     Expenses     Beginning     Ending     Expenses     Annualized  
Account Value     Account Value     Paid During     Account Value     Account Value     Paid During     Expense  
(09/01/19)   (02/29/20)   the Period (a)   (09/01/19)   (02/29/20)   the Period (a)   Ratio  
$ 1,000.00     $ 780.00     $ 2.57     $ 1,000.00     $ 1,022.00     $ 2.92     0.58 %

 

(a) Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 10 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR
    Percent of  
Sector   Total Investments (a)
Energy     15.7 %
Consumer Staples     13.3  
Financials     11.9  
Industrials     10.3  
Communication Services     9.9  
Utilities     9.0  
Materials     8.8  
Real Estate     7.7  
Health Care     6.6  
Consumer Discretionary     6.0  
Information Technology     0.8  
TEN LARGEST HOLDINGS
    Percent of  
Security   Total Investments (a)
PTT PCL     9.3 %
CP ALL PCL     8.0  
Airports of Thailand PCL     5.4  
Siam Cement PCL (The)     5.1  
Advanced Info Service PCL     5.0  
Bangkok Dusit Medical Services PCL     4.4  
PTT Exploration & Production PCL     3.1  
Kasikornbank PCL     2.9  
Intouch Holdings PCL     2.5  
Central Pattana PCL     2.5  

 

(a) Excludes money market funds.

  

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About Fund Performance

 

Past performance is no guarantee of future results. Financial markets have experienced extreme volatility and trading in many instruments has been disrupted. These circumstances may continue for an extended period of time, and may continue to affect adversely the value and liquidity of the fund's investments. As a result, current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at iShares.com. Performance results assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. The investment return and principal value of shares will vary with changes in market conditions. Shares may be worth more or less than their original cost when they are redeemed or sold in the market. Performance for certain funds may reflect a waiver of a portion of investment advisory fees. Without such a waiver, performance would have been lower.

 

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

 

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

 

Shareholder Expenses

 

As a shareholder of your Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares and (2) ongoing costs, including management fees and other fund expenses. The expense example, which is based on an investment of $1,000 invested at the beginning of the period (or from the commencement of operations if less than 6 months) and held through the end of the period, is intended to help you understand your ongoing costs ( in dollars and cents) of investing in your Fund and to compare these costs with the ongoing costs of investing in other funds.

 

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

 

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

 

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

 

10 2020 I S h a r e s  S e m i-a n n u a l  R e p o r t  t o  S h a r e h o l d e r s

 

 

 

 

 

Schedule of Investments (unaudited) iShares® MSCI Hong Kong ETF
February 29, 2020 (Percentages shown are based on Net Assets)

  

Security   Shares     Value  
             
Common Stocks            
             
Banks — 6.4%            
Bank of East Asia Ltd. (The)(a)     4,997,610     $ 10,619,773  
BOC Hong Kong Holdings Ltd.     14,244,000       48,893,181  
Hang Seng Bank Ltd.     2,943,200       61,371,350  
              120,884,304  
Beverages — 0.8%                
Budweiser Brewing Co. APAC Ltd.(a)(b)(c)     5,083,200       15,263,200  
                 
Biotechnology — 1.3%                
BeiGene Ltd., ADR(c)     148,864       23,572,614  
                 
Capital Markets — 8.0%                
Hong Kong Exchanges & Clearing Ltd.     4,610,600       151,338,883  
                 
Diversified Telecommunication Services — 1.7%
HKT Trust & HKT Ltd.     14,584,500       21,821,401  
PCCW Ltd.     16,292,169       9,804,925  
              31,626,326  
Electric Utilities — 7.0%                
CK Infrastructure Holdings Ltd.     2,552,000       17,388,724  
CLP Holdings Ltd.     6,316,700       66,303,445  
HK Electric Investments & HK Electric Investments Ltd.     10,177,500       10,238,815  
Power Assets Holdings Ltd.     5,339,500       38,026,479  
              131,957,463  
Equity Real Estate Investment Trusts (REITs) — 4.0%
Link REIT     8,069,400       74,760,290  
                 
Food & Staples Retailing — 0.3%
Dairy Farm International Holdings Ltd.     1,318,800       6,330,240  
                 
Food Products — 2.5%                
Vitasoy International Holdings Ltd.(a)     2,878,000       10,322,031  
WH Group Ltd.(b)     36,813,000       37,412,689  
              47,734,720  
Gas Utilities — 4.0%                
Hong Kong & China Gas Co. Ltd.     39,049,100       75,161,394  
                 
Hotels, Restaurants & Leisure — 7.1%
Galaxy Entertainment Group Ltd.     8,337,000       55,041,178  
Melco Resorts & Entertainment Ltd., ADR     841,216       14,586,685  
Sands China Ltd.     9,324,800       43,375,059  
SJM Holdings Ltd.     7,624,000       8,628,673  
Wynn Macau Ltd.     6,028,800       12,145,714  
              133,777,309  
Industrial Conglomerates — 9.0%                
CK Hutchison Holdings Ltd.     10,384,267       90,410,368  
Jardine Matheson Holdings Ltd.     851,600       46,327,040  
Jardine Strategic Holdings Ltd.     852,400       24,472,404  
NWS Holdings Ltd.     5,983,000       7,316,518  
              168,526,330  
Insurance — 24.4%                
AIA Group Ltd.     46,501,000       458,861,024  
Security   Shares     Value  
             
Machinery — 2.3%                
Techtronic Industries Co. Ltd.     5,280,647   $ 42,723,297  
                 
Real Estate Management & Development — 18.3%
CK Asset Holdings Ltd.     9,941,767       62,127,672  
Hang Lung Properties Ltd.     7,809,000       17,054,835  
Henderson Land Development Co. Ltd.     5,588,762       25,638,003  
Hongkong Land Holdings Ltd.     4,488,000       22,036,080  
Kerry Properties Ltd.     2,514,500       7,146,903  
New World Development Co. Ltd.     23,575,066       30,311,901  
Sino Land Co. Ltd.     1 1,758,000       15,993,071  
Sun Hung Kai Properties Ltd.     6,128,500       87,133,767  
Swire Pacific Ltd., Class A     1,917,000       17,268,387  
Swire Properties Ltd.     4,508,200       13,334,190  
Wharf Real Estate Investment Co. Ltd.     4,691,150       21,279,493  
Wheelock & Co. Ltd.     3,171,357       24,152,294  
              343,476,596  
Road & Rail — 1.8%                
MTR Corp. Ltd.     5,940,083       33,423,710  
                 
Semiconductors & Semiconductor Equipment — 0.7%
ASM Pacific Technology Ltd.     1,178,200       13,962,026  
                 
Textiles, Apparel & Luxury Goods — 0.4%                
Yue Yuen Industrial Holdings Ltd.     2,790,500       6,724,657  
                 
Total Common Stocks — 100.0%                
(Cost: $2,052,621,197)             1,880,104,383  
                 
Short-Term Investments                
                 
Money Market Funds — 1.1%                
BlackRock Cash Funds: Institutional, SL Agency Shares, 1.74% (d)(e)(f)     21,142,228       21,157,028  
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52% (d)(e)       799,000       799,000  
              21,956,028  
Total Short-Term Investments — 1.1%                
(Cost: $21,953,582)             21,956,028  
                 
Total Investments in Securities — 101.1%                
(Cost: $2,074,574,779)             1,902,060,411  
                 
Other Assets, Less Liabilities — (1.1)%             (21 ,367,135)  
                 
Net Assets — 100.0%           $ 1,880,693,276  

 

(a) All or a portion of this security is on loan.
(b) Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.
(c) Non-income producing security.
(d) Affiliate of the Fund.
(e) Annualized 7-day yield as of period-end.
(f) All or a portion of this security was purchased with cash collateral received from loaned securities.


S c h e d u l e  o f I n v e s t m e n t s 11

  

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI Hong Kong ETF

February 29, 2020

 

Affiliates

 

Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

 

                                        Change in  
    Shares           Shares                       Unrealized  
    Held at           Held at     Value at           Net Realized     Appreciation  
Affiliated Issuer   08/31/19     Net Activity     02/29/20     02/29/20     Income     Gain (Loss) (a)    (Depreciation)  
BlackRock Cash Funds: Institutional, SL Agency Shares     16,773,322       4,368,906       21,142,228     $ 21,157,028     $ 20,898 (b)   $ (1,731 )   $ 4,123  
BlackRock Cash Funds: Treasury, SL Agency Shares     613,000       186,000       799,000       799,000       21,625              
                            $ 21,956,028     $ 42,523     $ (1,731 )   $ 4,123  

 

(a) Includes realized capital gain distributions from an affiliated fund, if any.
(b) Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

 

Futures Contracts

 

                      Value/  
                Notional     Unrealized  
    Number of     Expiration     Amount     Appreciation  
Description     Contracts       Date       (000 )     (Depreciation)  
Long Contracts                                
Hang Seng Index     1       03/30/20     $ 168     $ (3,779 )

 

Derivative Financial Instruments Categorized by Risk Exposure

 

As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

    Equity  
    Contracts  
Liabilities — Derivative Financial Instruments        
Futures contracts        
Unrealized depreciation on futures contracts(a)       $ 3,779  

 

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

 

For the six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

    Equity  
    Contracts  
Net Realized Gain (Loss) from:        
Futures contracts   $ 432,703  
         
Net Change in Unrealized Appreciation (Depreciation) on:        
Futures contracts.   $ (4,230 )

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:      
Average notional value of contracts — long   $ 4,420,027  

 

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

 

Fair Value Measurements

 

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

 

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Schedule of Investments (unaudited) (continued) iShares® MSCI Hong Kong ETF

February 29, 2020

 

Fair Value Measurements (continued)

 

The following table summarizes the value of the Fund's investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund's investments into major categories is disclosed in the Schedule of Investments above.

  

    Level 1     Level 2     Level 3     Total  
Investments                                
Assets                                
Common Stocks   $ 1,880,104,383     $     $     $ 1,880,104,383  
Money Market Funds     21,956,028                   21,956,028  
    $ 1,902,060,411     $     $     $ 1,902,060,411  
Derivative financial instruments(a)                                
Liabilities                                
Futures Contracts   $ (3,779 )   $     $     $ (3,779 )

 

(a) Shown at the unrealized appreciation (depreciation) on the contracts.

 

See notes to financial statements.

 

S c h e d u l e  o f I n v e s t m e n t s 13

  

 

 

 

Schedule of Investments (unaudited) iShares®  MSCI Japan Small-Cap ETF
February 29, 2020 (Percentages shown are based on Net Assets)

  

Security   Shares     Value  
             
Common Stocks            
             
Aerospace & Defense — 0.0%            
Jamco Corp.     1,200     $ 11,959  
                 
Air Freight & Logistics — 0.3%                
Kintetsu World Express Inc.     4,800       75,339  
Konoike Transport Co. Ltd.     3,600       44,556  
Maruwa Unyu Kikan Co. Ltd.     2,400       38,848  
Mitsui-Soko Holdings Co. Ltd.     2,400       34,932  
SBS Holdings Inc.     2,400       35,556  
              229,231  
Auto Components — 3.1%                
Aisan Industry Co. Ltd.     3,600       20,793  
Daido Metal Co. Ltd.     4,800       26,121  
Daikyonishikawa Corp.     4,800       26,967  
Eagle Industry Co. Ltd.     2,400       18,223  
Exedy Corp.     2,400       44,878  
FCC Co. Ltd.     3,600       64,447  
Futaba Industrial Co. Ltd.     6,000       31,873  
G-Tekt Corp.     2,400       28,992  
Ichikoh Industries Ltd.     3,600       21,794  
Kasai Kogyo Co. Ltd.     2,400       14,685  
Keihin Corp.     4,800       115,077  
KYB Corp.(a)     2,400       53,267  
Mitsuba Corp.     3,600       20,425  
Musashi Seimitsu Industry Co. Ltd.     4,800       53,000  
NHK Spring Co. Ltd.     22,800       174,173  
Nifco Inc./Japan     9,600       233,269  
Nihon Tokushu Toryo Co. Ltd.     1,200       11,147  
Nippon Seiki Co. Ltd.     6,000       79,266  
Nissin Kogyo Co. Ltd.     4,800       99,458  
NOK Corp.     10,800       137,272  
Pacific Industrial Co. Ltd.     4,800       52,332  
Piolax Inc.     3,600       51,765  
Press Kogyo Co. Ltd.     10,800       31,039  
Riken Corp.     1,200       33,653  
Shoei Co. Ltd.     1,200       53,456  
Showa Corp.     6,000       127,215  
Sumitomo Riko Co. Ltd.     3,600       23,997  
Tachi-S Co. Ltd.     3,600       33,976  
Taiho Kogyo Co. Ltd.     2,400       12,682  
Tokai Rika Co. Ltd.     6,000       90,502  
Topre Corp.     3,600       47,025  
Toyo Tire Corp.     13,200       175,731  
Toyota Boshoku Corp.     7,200       99,524  
TPR Co. Ltd.     2,400       33,486  
TS Tech Co. Ltd.     4,800       125,401  
Unipres Corp.     4,800       51,887  
Yorozu Corp.     2,400       28,636  
              2,347,434  
Automobiles — 0.1%                
Nissan Shatai Co. Ltd.     7,200       66,350  
                 
Banks — 3.9%                
77 Bank Ltd. (The)     6,000       77,819  
Aichi Bank Ltd. (The)     1,200       35,822  
Akita Bank Ltd. (The)     1,200       18,657  
Aomori Bank Ltd. (The)     1,200       24,831  
Awa Bank Ltd. (The)     3,600       72,958  
Bank of Iwate Ltd. (The)     2,400       49,440  
Security   Shares     Value  
             
Banks (continued)                
Bank of Nagoya Ltd. (The)     1,200     $ 32,218  
Bank of Okinawa Ltd. (The)     2,400       67,418  
Bank of Saga Ltd. (The)     1,200       15,241  
Bank of the Ryukyus Ltd.     4,800       45,079  
Chugoku Bank Ltd. (The)     16,800       133,634  
Chukyo Bank Ltd. (The)     1,200       23,563  
Daishi Hokuetsu Financial Group Inc.     4,800       99,680  
Ehime Bank Ltd. (The)     3,600       33,909  
Gunma Bank Ltd. (The)     40,800       123,310  
Hachijuni Bank Ltd. (The)     42,000       143,680  
Hiroshima Bank Ltd. (The)     27,600       120,261  
Hokkoku Bank Ltd. (The)     2,400       61 ,499  
Hokuhoku Financial Group Inc.     14,400       122,420  
Hyakugo Bank Ltd. (The)     24,000       68,308  
Hyakujushi Bank Ltd. (The)     2,400       40,606  
Iyo Bank Ltd. (The)     27,600       124,867  
Juroku Bank Ltd. (The)     3,600       61 ,410  
Kansai Mirai Financial Group Inc.     12,074       56,864  
Keiyo Bank Ltd. (The)     10,800       50,964  
Kiyo Bank Ltd. (The)     7,200       95,186  
Kyushu Financial Group Inc.     42,000       143,290  
Miyazaki Bank Ltd. (The)     1,200       23,974  
Musashino Bank Ltd. (The)     3,600       49,729  
Nanto Bank Ltd. (The)     3,600       71 ,756  
Nishi-Nippon Financial Holdings Inc.     14,400       82,770  
North Pacific Bank Ltd.     32,400       61,277  
Ogaki Kyoritsu Bank Ltd. (The)     3,600       67,584  
Oita Bank Ltd. (The)     1,200       23,051  
San ju San Financial Group Inc.     2,400       32,796  
San-in Godo Bank Ltd. (The)     16,800       85,040  
Senshu Ikeda Holdings Inc.     27,600       42,475  
Shiga Bank Ltd. (The)     4,800       108,447  
Shikoku Bank Ltd. (The)     3,600       28,135  
Suruga Bank Ltd.(a)     19,200       69,064  
Toho Bank Ltd. (The)     21,600       44,055  
Tokyo Kiraboshi Financial Group Inc.     3,630       36,716  
TOMONY Holdings Inc.     16,800       47,036  
Towa Bank Ltd. (The)     3,600       23,229  
Yamagata Bank Ltd. (The)     2,400       24,586  
Yamaguchi Financial Group Inc.     24,000       127,938  
Yamanashi Chuo Bank Ltd. (The)     3,600       27,301  
              3,019,893  
Beverages — 0.7%                
Ito En Ltd.     6,000       264,775  
Sapporo Holdings Ltd.     7,200       144,447  
Takara Holdings Inc.     18,000       139,675  
              548,897  
Biotechnology — 0.4%                
AnGes Inc.(a)     12,000       43,165  
GNI Group Ltd. (a)     4,197       50,077  
HEALIOS KK(a)     2,400       37,135  
Japan Tissue Engineering Co. Ltd.(a)     1,200       7,654  
SanBio Co. Ltd.(a)     3,600       56,270  
Takara Bio Inc.     6,000       103,908  
              298,209  
Building Products — 1.6%                
Aica Kogyo Co. Ltd.     6,000       177,722  
Bunka Shutter Co. Ltd.     6,000       43,054  
Central Glass Co. Ltd.     4,800       91 ,314  


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Schedule of Investments (unaudited) (continued) iShares® MSCI Japan Small-Cap ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
Building Products (continued)                
Maeda Kosen Co. Ltd.     2,400   $ 44,478  
Nichias Corp.     7,200       149,053  
Nichiha Corp.     2,400       50,107  
Nippon Sheet Glass Co. Ltd.     10,800       48,561  
Nitto Boseki Co. Ltd.     2,600       100,273  
Noritz Corp.     3,600       36,946  
Okabe Co. Ltd.     3,600       25,365  
Sankyo Tateyama Inc.     2,400       24,141  
Sanwa Holdings Corp.     22,800       209,684  
Sekisui Jushi Corp.     3,600       70,822  
Shin Nippon Air Technologies Co. Ltd.     1,200       20,259  
Sinko Industries Ltd.     2,400       33,687  
Takara Standard Co. Ltd.     3,600       51,064  
Takasago Thermal Engineering Co. Ltd.     4,800       74,226  
              1,250,756  
Capital Markets — 0.8%                
GMO Financial Holdings Inc.     4,800       23,273  
Ichiyoshi Securities Co. Ltd.     4,800       23,629  
Jafco Co. Ltd.     3,600       137,005  
Kyokuto Securities Co. Ltd.     3,600       21,727  
M&A Capital Partners Co. Ltd.(a)     1,200       34,877  
Marusan Securities Co. Ltd.     6,000       24,086  
Matsui Securities Co. Ltd.     14,400       111,740  
Monex Group Inc.     19,200       37,024  
Okasan Securities Group Inc.     14,400       45,523  
SPARX Group Co. Ltd.     10,800       22,228  
Strike Co. Ltd.     1,200       44,778  
Tokai Tokyo Financial Holdings Inc.     22,800       60,031  
Uzabase Inc.(a)     1,200       17,722  
              603,643  
Chemicals — 5.6%                
Achilles Corp.     1,200       18,979  
ADEKA Corp.     9,600       126,647  
C.I. Takiron Corp.     3,600       20,726  
Chugoku Marine Paints Ltd.     4,800       41,074  
Dainichiseika Color & Chemicals Manufacturing Co. Ltd.     1,200       26,088  
Denka Co. Ltd.     9,600       242,792  
DIC Corp.     8,400       199,283  
Fujimi Inc.     2,400       61,588  
Fujimori Kogyo Co. Ltd.     1,200       31,929  
Fuso Chemical Co. Ltd.     2,400       66,416  
Hodogaya Chemical Co. Ltd.     1,200       40,662  
Ishihara Sangyo Kaisha Ltd.     3,600       23,897  
JCU Corp.     2,400       55,848  
JSP Corp.     1,200       18,100  
Kaneka Corp.     6,000       161,813  
Kanto Denka Kogyo Co. Ltd.     4,800       41,029  
KH Neochem Co. Ltd.     3,600       69,821  
Koatsu Gas Kogyo Co. Ltd.     3,600       22,094  
Konishi Co. Ltd.     3,600       44,789  
Kumiai Chemical Industry Co. Ltd.     8,449       56,789  
Kureha Corp.     2,400       121,485  
Lintec Corp.     4,800       102,795  
Nihon Nohyaku Co. Ltd.     3,600       16,854  
Nihon Parkerizing Co. Ltd.     10,800       99,525  
Nippon Kayaku Co. Ltd.     15,600       172,683  
Nippon Shokubai Co. Ltd.     3,600       182,895  
Nippon Soda Co. Ltd.     2,400       62,256  
NOF Corp.     7,200       231,289  
Security   Shares     Value  
             
Chemicals (continued)                
Okamoto Industries Inc.     1,200   $ 36,101  
Osaka Soda Co. Ltd.     1,200       28,402  
Sakai Chemical Industry Co. Ltd.     1,200       21 ,282  
Sakata INX Corp.     4,800       42,008  
Sanyo Chemical Industries Ltd.     1,200       48,839  
Sekisui Plastics Co. Ltd.     2,400       13,906  
Shikoku Chemicals Corp.     3,600       36,145  
Shin-Etsu Polymer Co. Ltd.     4,800       37,603  
Stella Chemifa Corp.     1,200       29,704  
Sumitomo Bakelite Co. Ltd.     3,600       108,135  
Sumitomo Seika Chemicals Co. Ltd.     1,200       31 ,239  
T. Hasegawa Co. Ltd.     3,600       66,950  
Taiyo Holdings Co. Ltd.     2,400       95,453  
Takasago International Corp.     1,200       22,550  
Tanaka Chemical Corp.(a)     1,200       6,631  
Tayca Corp.     1,200       16,343  
Tenma Corp.     2,400       36,067  
Toagosei Co. Ltd.     12,000       119,928  
Tokai Carbon Co. Ltd.     22,800       203,977  
Tokuyama Corp.     7,200       162,470  
Tokyo Ohka Kogyo Co. Ltd.     3,600       129,662  
Toyo Ink SC Holdings Co. Ltd     3,600       70,121  
Toyobo Co. Ltd.     9,600       120,773  
Ube Industries Ltd.     12,000       218,940  
Valqua Ltd.     1,200       22,706  
Zeon Corp.     16,800       160,890  
              4,246,971  
Commercial Services & Supplies — 1.7%
Aeon Delight Co. Ltd.     2,400       73,203  
Bell System24 Holdings Inc.     3,600       42,987  
Central Security Patrols Co. Ltd.     1,300       53,090  
Daiseki Co. Ltd.     3,660       87,679  
Duskin Co. Ltd.     4,800       124,155  
Japan Elevator Service Holdings Co. Ltd.     2,400       46,147  
Kokuyo Co. Ltd.     9,600       135,992  
Matsuda Sangyo Co. Ltd.     1,260       16,482  
Mitsubishi Pencil Co. Ltd.     3,600       49,662  
Nichiban Co. Ltd.     1,200       16,999  
Nippon Kanzai Co. Ltd.     2,400       39,672  
Nippon Parking Development Co. Ltd.     22,800       25,576  
Okamura Corp.     7,200       60,342  
Oyo Corp.     2,400       27,679  
Pilot Corp.     3,600       1 17,313  
Prestige International Inc.     12,000       92,783  
Raksul Inc.(a)     2,400       62,945  
Relia Inc.     4,800       53,667  
Sato Holdings Corp.     3,600       81 ,135  
Toppan Forms Co. Ltd.     6,000       57,238  
              1,264,746  
Communications Equipment — 0.1%                
Denki Kogyo Co. Ltd.     1,200       30,115  
Icom Inc.     1,200       25,788  
              55,903  
Construction & Engineering — 5.1%                
Chiyoda Corp.(a)     19,200       54,112  
Chudenko Corp.     3,600       75,060  
COMSYS Holdings Corp.     14,400       355,644  
Dai-Dan Co. Ltd.     1,200       28,969  
Daiho Corp.     1,200       25,532  


S c h e d u l e   o f   I n v e s t m e n t s 15

 

 

 

 

Schedule of Investments (unaudited) iShares® MSCI Japan Small-Cap ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
Construction & Engineering (continued)                
Hazama Ando Corp.     21,600   $ 158,398  
Hibiya Engineering Ltd.     2,400       39,004  
JDC Corp.     3,600       16,921  
Kandenko Co. Ltd.     10,800       91,614  
Kinden Corp.     15,600       235,884  
Kumagai Gumi Co. Ltd.     3,600       95,720  
Kyowa Exeo Corp.     12,000       262,439  
Kyudenko Corp.     4,800       128,650  
Maeda Corp.     16,800       150,455  
Maeda Road Construction Co. Ltd.     7,200       213,266  
Meisei Industrial Co. Ltd.     3,600       23,830  
Mirait Holdings Corp.     8,800       115,604  
Nippo Corp.     6,000       136,115  
Nippon Densetsu Kogyo Co. Ltd.     3,600       65,715  
Nippon Koei Co. Ltd.     1,200       32,908  
Nippon Road Co. Ltd. (The)     1,200       72,313  
Nishimatsu Construction Co. Ltd.     6,200       130,593  
Okumura Corp.     3,600       87,576  
OSJB Holdings Corp.     15,600       36,012  
Penta-Ocean Construction Co. Ltd.     31,200       166,319  
Raito Kogyo Co. Ltd.     4,800       58,340  
Raiznext Corp.     3,600       40,617  
Sanki Engineering Co. Ltd.     4,800       56,649  
Shinnihon Corp.     3,600       25,265  
SHO-BOND Holdings Co. Ltd.     3,600       131,498  
Sumitomo Densetsu Co. Ltd.     2,400       49,239  
Sumitomo Mitsui Construction Co. Ltd.     18,000       91,448  
Taihei Dengyo Kaisha Ltd.     1,200       25,476  
Taikisha Ltd.     2,400       69,086  
Takamatsu Construction Group Co. Ltd.     1,200       25,988  
Tekken Corp.     1,200       26,622  
Toa Corp./Tokyo     2,400       35,133  
Toda Corp.     26,400       158,109  
Toenec Corp.     1,200       36,434  
Tokyu Construction Co. Ltd.     9,640       60,593  
Totetsu Kogyo Co. Ltd.     2,400       61,722  
Toyo Construction Co. Ltd.     8,400       35,122  
Yahagi Construction Co. Ltd.     3,600       26,667  
Yokogawa Bridge Holdings Corp.     3,600       65,549  
Yurtec Corp.     4,800       25,231  
              3,903,441  
Construction Materials — 0.2%                
Sumitomo Osaka Cement Co. Ltd.     3,600       123,321  
                 
Consumer Finance — 0.5%                
Aiful Corp.(a)     36,000       88,444  
Hitachi Capital Corp.     6,000       153,636  
J Trust Co. Ltd.     7,200       23,095  
Jaccs Co. Ltd.     2,400       48,194  
Orient Corp.     52,800       65,104  
              378,473  
Containers & Packaging — 0.5%                
FP Corp.     2,400       144,180  
Fuji Seal International Inc.     4,800       85,485  
Pack Corp. (The)     1,200       39,104  
Rengo Co. Ltd.     20,400       138,251  
              407,020  
Distributors — 0.3%                
Arata Corp.     1,200       45,947  
Security   Shares     Value  
             
Distributors (continued)                
Doshisha Co. Ltd.     2,400   $ 30,816  
PALTAC Corp.     3,600       152,524  
              229,287  
Diversified Consumer Services — 0.1%
Japan Best Rescue System Co. Ltd.     2,400       16,799  
Meiko Network Japan Co. Ltd.     2,400       18,022  
Riso Kyoiku Co. Ltd.     12,000       34,043  
Studio Alice Co. Ltd.     1,200       17,244  
              86,108  
Diversified Financial Services — 0.9%                
eGuarantee Inc.     3,600       40,451  
Financial Products Group Co. Ltd.     7,200       57,138  
Fuyo General Lease Co. Ltd.     2,400       135,503  
Japan Investment Adviser Co. Ltd.     1,200       16,665  
Japan Securities Finance Co. Ltd.     9,600       41 ,563  
Mizuho Leasing Co. Ltd.     3,600       95,052  
NEC Capital Solutions Ltd.     1,200       23,529  
Ricoh Leasing Co. Ltd.     1,200       41 ,329  
Zenkoku Hosho Co. Ltd.     6,000       225,004  
              676,234  
Diversified Telecommunication Services — 0.2%
ARTERIA Networks Corp.     2,400       39,583  
Internet Initiative Japan Inc.     3,600       98,757  
Vision Inc./Tokyo Japan (a)(b)     2,600       25,743  
              164,083  
Electric Utilities — 0.6%                
Hokkaido Electric Power Co. Inc.     21,600       94,118  
Hokuriku Electric Power Co.(a)     20,400       138,061  
Okinawa Electric Power Co. Inc. (The)     4,812       82,754  
Shikoku Electric Power Co. Inc..     19,200       146,316  
              461,249  
Electrical Equipment — 1.6%                
Chiyoda Integre Co. Ltd.     1,200       20,058  
Cosel Co. Ltd.     2,400       22,317  
Daihen Corp.     2,400       63,034  
Denyo Co. Ltd.     2,400       41 ,296  
Fujikura Ltd.     27,600       88,533  
Furukawa Electric Co. Ltd.     8,400       185,109  
Futaba Corp.     3,600       34,844  
GS Yuasa Corp.     7,200       127,292  
Idec Corp./Japan     3,600       55,035  
Mabuchi Motor Co. Ltd.     4,800       166,653  
Nippon Carbon Co. Ltd.(b)     1,200       39,883  
Nissin Electric Co. Ltd.     4,800       45,924  
Nitto Kogyo Corp.     2,400       42,142  
Sanyo Denki Co. Ltd.     1,200       48,894  
Sinfonia Technology Co. Ltd.     2,400       22,562  
Tatsuta Electric Wire and Cable Co. Ltd.     4,800       23,007  
Toyo Tanso Co. Ltd.     1,200       18,801  
Ushio Inc.     12,000       150,188  
              1,195,572  
Electronic Equipment, Instruments & Components — 5.1%
Ai Holdings Corp.     3,600       50,897  
Amano Corp.     6,000       147,406  
Anritsu Corp.(b)     15,600       256,565  
Azbil Corp.     14,400       356,846  
Canon Electronics Inc.     2,400       41 ,207  
Canon Marketing Japan Inc.     6,000       138,729  


16 2 0 2 0   i  S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

  

Schedule of Investments (unaudited) (continued) iShares® MSCI Japan Small-Cap ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
Electronic Equipment, Instruments & Components (continued)
Citizen Watch Co. Ltd.     34,800     $ 137,761  
CMK Corp.     4,800       20,826  
CONEXIO Corp.     1,200       14,974  
Daiwabo Holdings Co. Ltd.     2,500       126,779  
Dexerials Corp.     6,000       44,055  
Elematec Corp.     1,200       10,235  
Enplas Corp.     1,200       28,524  
ESPEC Corp.     2,400       44,300  
Hioki E.E. Corp.     1,200       35,934  
Hochiki Corp.     1,200       13,339  
Horiba Ltd.     4,700       256,645  
Hosiden Corp.     6,000       51,843  
Ibiden Co. Ltd.     13,200       292,354  
Iriso Electronics Co. Ltd.     2,400       81,658  
Japan Aviation Electronics Industry Ltd.     6,000       96,398  
Japan Cash Machine Co. Ltd.     2,400       14,485  
Japan Display Inc.(a)     68,400       38,682  
Kaga Electronics Co. Ltd.     2,400       44,033  
Koa Corp.     2,400       23,363  
Macnica Fuji Electronics Holdings Inc.     4,800       67,151  
Maruwa Co. Ltd./Aichi     1,200       76,429  
Meiko Electronics Co. Ltd.     2,400       35,622  
Nichicon Corp.     4,800       35,378  
Nippon Ceramic Co. Ltd.     2,400       48,594  
Nippon Chemi-Con Corp.     1,200       17,188  
Nippon Electric Glass Co. Ltd.     9,600       162,247  
Nippon Signal Co. Ltd.     4,800       51,086  
Nissha Co. Ltd.     3,600       28,135  
Nohmi Bosai Ltd.     2,400       45,145  
Ohara Inc.     1,200       11,815  
Oki Electric Industry Co. Ltd.     9,600       105,910  
Optex Group Co. Ltd.     3,600       41,018  
Osaki Electric Co. Ltd.     3,600       18,256  
Restar Holdings Corp.     2,400       35,311  
Riken Keiki Co. Ltd.     1,200       22,105  
Ryosan Co. Ltd.     2,400       49,662  
Ryoyo Electro Corp.     1,200       19,647  
Sanshin Electronics Co. Ltd.     1,200       16,643  
Siix Corp.     3,600       40,350  
Taiyo Yuden Co. Ltd.     14,400       403,171  
Tamura Corp.     8,400       38,159  
Topcon Corp.     12,000       119,816  
V Technology Co. Ltd.     1,200       42,219  
Yokowo Co. Ltd.     1,200       27,012  
              3,925,907  
Energy Equipment & Services — 0.1%                
Modec Inc.     2,400       40,206  
                 
Entertainment — 1.7%                
Amuse Inc.     1,200       25,020  
Ateam Inc.     1,200       8,633  
Avex Inc.     3,600       33,842  
Capcom Co. Ltd.     9,600       261,482  
COLOPL Inc.     7,200       55,336  
Daiichikosho Co. Ltd.     4,800       196,245  
DeNA Co. Ltd.     13,200       169,979  
GungHo Online Entertainment Inc.     4,800       75,962  
KLab Inc.(a)(b)     3,600       20,325  
Koei Tecmo Holdings Co. Ltd.     6,068       150,821  
Marvelous Inc.     3,600       20,459  
Security   Shares     Value  
             
Entertainment (continued)                
Shochiku Co. Ltd.     1,200   $ 129,162  
Toei Animation Co. Ltd.     1,200       49,173  
Toei Co. Ltd.     1,000       1 13,383  
UUUM Inc.(a)     1,200       25,821  
              1,335,643  
Equity Real Estate Investment Trusts (REITs) — 11.2%
Activia Properties Inc.     84       400,278  
Advance Residence Investment Corp.     156       464,970  
AEON REIT Investment Corp.     168       204,344  
Comforia Residential REIT Inc.     72       220,609  
Daiwa Office Investment Corp.     36       278,014  
Frontier Real Estate Investment Corp.     48       178,890  
Fukuoka REIT Corp.     84       130,752  
Global One Real Estate Investment Corp.     108       129,262  
GLP J-REIT     409       518,715  
Hankyu Hanshin REIT Inc.     72       106,533  
Heiwa Real Estate REIT Inc.     108       133,367  
Hoshino Resorts REIT Inc.     24       103,463  
Hulic Reit Inc.     132       222,845  
Ichigo Office REIT Investment Corp.     144       140,442  
Industrial & Infrastructure Fund Investment Corp.     180       283,187  
Invesco Office J-Reit Inc.     1,044       212,739  
Invincible Investment Corp.     720       293,367  
Japan Excellent Inc.     132       220,765  
Japan Hotel REIT Investment Corp.     528       295,658  
Japan Logistics Fund Inc.     108       268,736  
Japan Rental Housing Investments Inc.     204       184,586  
Kenedix Office Investment Corp.     48       358,671  
Kenedix Residential Next Investment Corp.     108       185,332  
Kenedix Retail REIT Corp.     48       106,667  
LaSalle Logiport REIT     144       210,930  
MCUBS MidCity Investment Corp.     180       187,902  
Mirai Corp.     192       89,000  
Mitsubishi Estate Logistics REIT Investment Corp.     34       120,410  
Mitsui Fudosan Logistics Park Inc.     48       214,713  
Mori Hills REIT Investment Corp.     204       321,135  
Mori Trust Hotel Reit Inc.     48       56,604  
Mori Trust Sogo REIT Inc.     120       203,922  
Nippon Accommodations Fund Inc.     48       294,145  
NIPPON REIT Investment Corp.     48       207,370  
One REIT Inc.     24       72,980  
Premier Investment Corp.     156       214,045  
Samty Residential Investment Corp.     36       31 ,673  
Sekisui House Reit Inc.     480       379,586  
Star Asia Investment Corp.     48       44,767  
Starts Proceed Investment Corp.     24       43,477  
Takara Leben Real Estate Investment Corp.     48       47,927  
Tokyu REIT Inc.     108       193,642  
              8,576,420  
Food & Staples Retailing — 3.4%                
Ain Holdings Inc.     2,500       144,625  
Arcs Co. Ltd.     4,800       76,896  
Axial Retailing Inc.     1,200       38,214  
Belc Co. Ltd.     1,200       57,628  
Cawachi Ltd.     1,200       22,339  
cocokara fine Inc.     2,400       1 10,249  
Cosmos Pharmaceutical Corp.     1,200       260,659  
Create SD Holdings Co. Ltd.     3,600       81 ,569  
Daikokutenbussan Co. Ltd.     1,200       33,876  


S c h e d u l e   o f   I n v e s t m e n t s 17

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI Japan Small-Cap ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
Food & Staples Retailing (continued)                
G-7 Holdings Inc.     1,200     $ 24,341  
Genky DrugStores Co. Ltd.     1,200       19,903  
Halows Co. Ltd.     1,200       27,557  
Heiwado Co. Ltd.     3,600       55,903  
JM Holdings Co. Ltd.     1,200       23,607  
Kansai Super Market Ltd.     1,200       9,656  
Kato Sangyo Co. Ltd.     2,400       66,973  
Kobe Bussan Co. Ltd.     7,200       262,662  
Kusuri no Aoki Holdings Co. Ltd.     2,200       134,613  
Life Corp.     1,200       26,155  
Matsumotokiyoshi Holdings Co. Ltd.     8,400       275,289  
Ministop Co. Ltd.     1,200       15,942  
Mitsubishi Shokuhin Co. Ltd.     1,200       29,181  
Nihon Chouzai Co. Ltd.     1,200       39,772  
Okuwa Co. Ltd.     2,400       29,570  
Qol Holdings Co. Ltd.     2,400       27,634  
Retail Partners Co. Ltd.     3,000       19,246  
San-A Co. Ltd.     1,200       43,554  
Shoei Foods Corp.     1,200       35,656  
Sogo Medical Holdings Co. Ltd.     2,400       56,626  
Sugi Holdings Co. Ltd.     4,200       198,971  
United Super Markets Holdings Inc.     6,000       47,559  
Valor Holdings Co. Ltd.     4,800       72,758  
YAKUODO Holdings Co. Ltd.     1,300       26,744  
Yaoko Co. Ltd.     2,400       129,940  
Yokohama Reito Co. Ltd.     4,800       37,959  
              2,563,826  
Food Products — 4.4%                
Ariake Japan Co. Ltd.     2,500       159,459  
Chubu Shiryo Co. Ltd.     2,400       31,684  
DyDo Group Holdings Inc.     1,200       39,104  
Ezaki Glico Co. Ltd.     4,800       197,803  
Feed One Co. Ltd.     13,200       18,968  
Fuji Oil Holdings Inc.     6,000       139,341  
Fujicco Co. Ltd.     2,400       38,826  
Fujiya Co. Ltd.     1,200       21,316  
Hokuto Corp.     2,400       40,896  
House Foods Group Inc.     7,200       212,599  
Itoham Yonekyu Holdings Inc.     16,800       92,827  
J-Oil Mills Inc.     1,200       44,778  
Kagome Co. Ltd.     8,400       181,293  
Kameda Seika Co. Ltd.     1,200       48,672  
Kenko Mayonnaise Co. Ltd.     1,200       21,894  
Kewpie Corp.     12,000       220,832  
KEY Coffee Inc.     2,400       45,346  
Kotobuki Spirits Co. Ltd.     2,400       115,478  
Marudai Food Co. Ltd.     2,400       39,316  
Maruha Nichiro Corp.     4,800       100,837  
Megmilk Snow Brand Co. Ltd.     6,000       120,985  
Mitsui Sugar Co. Ltd.     1,200       21,126  
Morinaga & Co. Ltd./Japan     4,800       189,793  
Morinaga Milk Industry Co. Ltd.     3,600       127,826  
Nagatanien Holdings Co. Ltd.     1,200       22,417  
Nichirei Corp.     12,200       311,376  
Nippon Beet Sugar Manufacturing Co. Ltd.     1,200       19,135  
Nippon Flour Mills Co. Ltd.     4,800       71,378  
Nippon Suisan Kaisha Ltd.     32,400       153,492  
Nisshin Oillio Group Ltd. (The)     2,400       74,204  
Prima Meat Packers Ltd.     3,600       74,159  
Riken Vitamin Co. Ltd.     1,200       42,108  
Security   Shares     Value  
             
Food Products (continued)                
Rock Field Co. Ltd.     2,400     $ 28,124  
Rokko Butter Co. Ltd.     1,200       14,974  
S Foods Inc.     2,400       49,862  
Sakata Seed Corp.     3,600       100,292  
Showa Sangyo Co. Ltd.     2,400       65,504  
Starzen Co. Ltd.     1,200       46,781  
Warabeya Nichiyo Holdings Co. Ltd.     1,200       18,067  
              3,362,872  
Gas Utilities — 0.3%                
K&O Energy Group Inc.     1,200       16,943  
Nippon Gas Co. Ltd.     4,800       152,635  
Shizuoka Gas Co. Ltd.     6,000       48,116  
              217,694  
Health Care Equipment & Supplies — 1.8%                
CYBERDYNE Inc.(a)     13,200       53,600  
Eiken Chemical Co. Ltd.     3,600       63,313  
Hogy Medical Co. Ltd.     2,400       68,641  
Jeol Ltd.     4,800       126,425  
Mani Inc.     8,400       178,490  
Menicon Co. Ltd.     2,400       98,123  
Nagaileben Co. Ltd.     2,400       49,106  
Nakanishi Inc.     7,200       108,602  
Nihon Kohden Corp.     9,600       285,690  
Nikkiso Co. Ltd.     6,000       53,623  
Nipro Corp.     16,800       179,113  
Paramount Bed Holdings Co. Ltd.     2,400       93,116  
              1,357,842  
Health Care Providers & Services — 1.3%                
As One Corp.     1,200       90,224  
BML Inc.     2,400       64,725  
Elan Corp.     1,200       15,030  
Japan Lifeline Co. Ltd.     7,200       87,643  
Japan Medical Dynamic Marketing Inc.     1,200       17,889  
Miraca Holdings Inc.     6,000       149,354  
NichiiGakkan Co. Ltd.     4,800       49,929  
Ship Healthcare Holdings Inc.     4,800       194,910  
Solasto Corp.     6,000       54,624  
Toho Holdings Co. Ltd.     6,000       1 13,475  
Tokai Corp./Gifu     2,400       51 ,798  
Tsukui Corp.     6,000       27,590  
Vital KSK Holdings Inc.     6,000       55,959  
              973,150  
Health Care Technology — 0.1%                
EM Systems Co. Ltd.     3,600       29,704  
Medical Data Vision Co. Ltd.(a)     2,400       16,287  
              45,991  
Hotels, Restaurants & Leisure — 3.9%                
Aeon Fantasy Co. Ltd.     1,200       20,559  
Arcland Service Holdings Co. Ltd.     2,400       36,868  
Atom Corp.     10,800       90,012  
BRONCO BILLY Co. Ltd.     1,200       23,752  
Colowide Co. Ltd.     7,200       1 18,481  
Create Restaurants Holdings Inc.     9,600       76,095  
Curves Holdings Co. Ltd.(a)     5,200       39,097  
Daisyo Corp.     1,200       14,985  
Doutor Nichires Holdings Co. Ltd.     3,600       60,509  
Fuji Kyuko Co. Ltd.     2,400       62,055  
Fujio Food System Co. Ltd.     2,400       31 ,751  
Fujita Kanko Inc.     1,200       22,005  


18 2 0 2 0   i  S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

  

Schedule of Investments (unaudited) (continued) iShares® MSCI Japan Small-Cap ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
Hotels, Restaurants & Leisure (continued)                
Hiday Hidaka Corp.     2,484     $ 37,560  
HIS Co. Ltd.     3,600       71,089  
Ichibanya Co. Ltd.     1,300       53,029  
Kappa Create Co. Ltd.     3,600       42,620  
Kisoji Co. Ltd.     2,400       55,803  
KNT-CT Holdings Co. Ltd.(a)     1,200       10,458  
KOMEDA Holdings Co. Ltd.     6,000       101,683  
Koshidaka Holdings Co. Ltd.     4,800       25,054  
Kourakuen Holdings Corp.     1,200       16,765  
Kura Sushi Inc.     1,200       50,118  
Kyoritsu Maintenance Co. Ltd.(b)     3,680       113,097  
Matsuyafoods Holdings Co. Ltd.     1,200       42,331  
Monogatari Corp. (The)     600       37,881  
MOS Food Services Inc.     2,400       54,735  
Ohsho Food Service Corp.     1,200       63,524  
Pepper Food Service Co. Ltd.     1,200       7,765  
Plenus Co. Ltd.     2,400       37,981  
Renaissance Inc.     1,200       15,186  
Resorttrust Inc.     9,600       126,914  
Ringer Hut Co. Ltd.(b)     2,400       46,525  
Round One Corp.     7,200       53,801  
Royal Holdings Co. Ltd.     3,600       59,808  
Saizeriya Co. Ltd.     3,600       68,352  
SFP Holdings Co. Ltd.     1,200       19,458  
Skylark Holdings Co. Ltd.     22,800       342,005  
St. Marc Holdings Co. Ltd.     2,400       42,898  
Sushiro Global Holdings Ltd.     3,100       221,295  
TKP Corp.(a)     1,600       37,973  
Tokyo Dome Corp.     9,600       73,336  
Tokyotokeiba Co. Ltd.     2,400       73,091  
Toridoll Holdings Corp.     2,400       48,372  
Tosho Co. Ltd.     1,200       17,489  
WATAMI Co. Ltd.     2,400       21,427  
Yoshinoya Holdings Co. Ltd.     7,200       143,179  
Zensho Holdings Co. Ltd.     9,600       175,419  
              3,004,190  
Household Durables — 1.8%                
Chofu Seisakusho Co. Ltd.     2,400       47,103  
Corona Corp.     1,200       10,636  
ES-Con Japan Ltd.     3,600       23,129  
Foster Electric Co. Ltd.     2,400       31,973  
France Bed Holdings Co. Ltd.     2,400       19,113  
Fujitsu General Ltd.     7,200       143,246  
Haseko Corp.     31,200       402,058  
Hinokiya Group Co. Ltd.     1,200       20,114  
JVCKenwood Corp.     20,400       41,419  
LEC Inc.     3,000       26,227  
Pressance Corp.     3,600       38,048  
Sangetsu Corp.     6,000       91,837  
Starts Corp. Inc.     3,600       74,226  
Sumitomo Forestry Co. Ltd.     15,600       232,557  
Tama Home Co. Ltd.     1,200       14,084  
Tamron Co. Ltd.     1,200       26,511  
Token Corp.     1,220       84,602  
Zojirushi Corp.     3,600       55,736  
              1,382,619  
Household Products — 0.1%                
Earth Corp.     1,200       62,411  
Security   Shares     Value  
             
Household Products (continued)                
S.T. Corp.     1,200   $ 16,243  
              78,654  
Independent Power and Renewable Electricity Producers — 0.1%
eRex Co. Ltd.     2,400       28,881  
RENOVA Inc.(a)     2,400       21 ,271  
              50,152  
Industrial Conglomerates — 0.4%                
Katakura Industries Co. Ltd.     2,400       27,612  
Mie Kotsu Group Holdings Inc.     6,000       27,145  
Nisshinbo Holdings Inc.     16,800       143,290  
Noritsu Koki Co. Ltd.     2,400       28,525  
TOKAI Holdings Corp.     12,000       98,234  
              324,806  
Insurance — 0.1%                
Anicom Holdings Inc.     2,100       65,220  
                 
Interactive Media & Services — 0.5%                
Bengo4.com Inc.(a)     1,200       43,610  
COOKPAD Inc.(a)     6,000       15,241  
Dip Corp.     3,600       87,209  
Gree Inc.     14,400       58,740  
Gurunavi Inc.     3,600       24,230  
Itokuro Inc.(a)     1,200       15,219  
Kamakura Shinsho Ltd.     2,400       29,281  
Lifull Co. Ltd.     7,200       27,635  
Mixi Inc.     4,800       76,229  
MTI Ltd.     2,400       12,482  
ZIGExN Co. Ltd.     6,000       21 ,138  
              411,014  
Internet & Direct Marketing Retail — 0.3%                
ASKUL Corp.     2,400       67,640  
Belluna Co. Ltd.     6,000       30,149  
Demae-Can Co. Ltd.     2,400       22,028  
Enigmo Inc.     2,400       16,576  
Istyle Inc.(a)       4,800       12,994  
Media Do Holdings Co. Ltd.     1,200       31 ,562  
Oisix ra daichi Inc.(a)     2,400       23,963  
Open Door Inc.(a)     1,200       11 ,403  
              216,315  
IT Services — 3.4%                
Argo Graphics Inc.     1,200       35,600  
Change Inc.(a)     1,200       37,603  
Comture Corp.     2,400       47,059  
Digital Garage Inc.     3,600       1 12,641  
Digital Hearts Holdings Co. Ltd.     1,200       9,000  
DTS Corp.     4,800       87,843  
Future Corp.     2,400       35,378  
GMO internet Inc.     8,400       139,630  
Ines Corp.     2,400       32,797  
Infocom Corp.     2,400       60,498  
Information Services International-Dentsu Ltd.     1,200       51,119  
Kanematsu Electronics Ltd.     1,200       34,265  
LAC Co. Ltd.     2,400       19,424  
Mitsubishi Research Institute Inc.     1,200       41 ,941  
NEC Networks & System Integration Corp.     2,400       88,444  
NET One Systems Co. Ltd.     9,600       199,627  
Nihon Unisys Ltd.     8,400       253,484  
NS Solutions Corp.     3,600       99,858  
NSD Co. Ltd.     9,600       153,525  


S c h e d u l e   o f   I n v e s t m e n t s 19

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI Japan Small-Cap ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
IT Services (continued)                
Oro Co. Ltd.     1,200     $ 30,193  
SB Technology Corp.     1,200       22,651  
SCSK Corp.     6,056       312,723  
SHIFT Inc.(a)     1,200       71,534  
TechMatrix Corp.     2,400       54,757  
TIS Inc.     8,448       500,466  
TKC Corp.     1,200       54,401  
Transcosmos Inc.     2,400       52,755  
              2,639,216  
Leisure Products — 0.5%                
Heiwa Corp.     6,016       112,328  
Mars Group Holdings Corp.     1,200       19,691  
Mizuno Corp.     2,400       47,682  
Tomy Co. Ltd.     9,600       84,995  
Universal Entertainment Corp.     3,600       97,422  
Yonex Co. Ltd.     6,000       30,482  
              392,600  
Life Sciences Tools & Services — 0.1%                
CMIC Holdings Co. Ltd.     1,200       15,252  
EPS Holdings Inc.     3,600       37,547  
              52,799  
Machinery — 5.8%                
Aichi Corp.     3,600       20,759  
Aida Engineering Ltd.     6,000       44,723  
Anest Iwata Corp.     3,600       32,741  
Asahi Diamond Industrial Co. Ltd.     6,000       29,314  
Bando Chemical Industries Ltd.     3,600       23,296  
CKD Corp.     6,000       92,449  
Daiwa Industries Ltd.     3,600       33,242  
DMG Mori Co. Ltd.     13,200       166,797  
Ebara Corp.     10,800       257,422  
Fuji Corp./Aichi     7,200       115,811  
Fujitec Co. Ltd.     7,200       100,192  
Fukushima Galilei Co. Ltd.     1,200       38,604  
Furukawa Co. Ltd.     3,600       40,517  
Giken Ltd.     1,800       60,075  
Glory Ltd.     6,000       159,866  
Harmonic Drive Systems Inc.     4,800       202,030  
Hirata Corp.     1,200       55,848  
Hisaka Works Ltd.     2,400       17,822  
Hitachi Zosen Corp.     19,200       66,750  
Iseki & Co. Ltd.     2,400       25,632  
Japan Steel Works Ltd. (The)     7,200       105,131  
Kitz Corp.     8,400       50,152  
Komori Corp.     6,000       45,779  
Kyokuto Kaihatsu Kogyo Co. Ltd.     3,600       41,452  
Makino Milling Machine Co. Ltd.     2,400       81,658  
Max Co. Ltd.     2,400       39,672  
Meidensha Corp.     3,600       57,872  
METAWATER Co. Ltd.     1,200       42,386  
Mitsubishi Logisnext Co. Ltd.     2,400       30,038  
Mitsuboshi Belting Ltd.     2,400       32,886  
Mitsui E&S Holdings Co. Ltd.(a)     8,400       60,431  
Miura Co. Ltd.     9,600       314,170  
Morita Holdings Corp.     3,600       56,204  
Nachi-Fujikoshi Corp.     1,200       39,605  
Nihon Trim Co. Ltd.     1,200       35,044  
Nippon Sharyo Ltd.(a)     1,200       28,758  
Nippon Thompson Co. Ltd.     6,000       20,693  
Security   Shares     Value  
             
Machinery (continued)                
Nissei ASB Machine Co. Ltd.     1,200     $ 38,381  
Nitta Corp.     2,400       54,157  
Nitto Kohki Co. Ltd.     1,200       22,840  
Nittoku Co. Ltd.     1,200       35,044  
Noritake Co. Ltd./Nagoya Japan     1,200       42,275  
NTN Corp.     48,000       116,145  
Obara Group Inc.     1,200       32,151  
Oiles Corp.     2,496       32,813  
OKUMA Corp.     2,400       101,905  
Organo Corp.     1,200       70,755  
OSG Corp.     9,600       144,091  
Rheon Automatic Machinery Co. Ltd.     2,400       25,810  
Ryobi Ltd.     2,400       31 ,239  
Shibuya Corp.     1,200       29,114  
Shima Seiki Manufacturing Ltd.     3,600       56,504  
Shinmaywa Industries Ltd.     4,800       54,201  
Sintokogio Ltd.     4,800       34,310  
Sodick Co. Ltd.     4,800       32,263  
Star Micronics Co. Ltd.     3,600       40,484  
Tadano Ltd.     12,000       100,459  
Takeuchi Manufacturing Co. Ltd.     3,600       55,236  
Takuma Co. Ltd.     8,400       92,204  
Teikoku Sen-I Co. Ltd.     2,400       42,742  
Tocalo Co. Ltd.     6,800       60,142  
Toshiba Machine Co. Ltd.     2,400       65,971  
Tsubaki Nakashima Co. Ltd.     4,800       45,657  
Tsubakimoto Chain Co.     2,400       65,482  
Tsugami Corp.     4,800       38,982  
Tsukishima Kikai Co. Ltd.     3,600       41 ,452  
Tsurumi Manufacturing Co. Ltd.     2,400       38,470  
Union Tool Co.     1,200       29,459  
YAMABIKO Corp.     3,600       29,036  
Yamashin-Filter Corp.     3,600       22,562  
Yushin Precision Equipment Co. Ltd.     2,400       18,000  
              4,406,157  
Marine — 0.2%                
Iino Kaiun Kaisha Ltd.     9,600       29,459  
Kawasaki Kisen Kaisha Ltd.(a)     9,600       108,224  
NS United Kaiun Kaisha Ltd.     1,200       19,024  
              156,707  
Media — 0.6%                
F@N Communications Inc.     4,800       19,625  
Kadokawa Dwango(a)     4,808       62,983  
Macromill Inc.     4,800       37,558  
OPT Holding Inc.     1,200       18,256  
Proto Corp.     2,400       24,119  
RPA Holdings Inc.(a)     2,400       19,647  
SKY Perfect JSAT Holdings Inc.     15,600       67,251  
Tokyo Broadcasting System Holdings Inc.     3,600       56,204  
TV Asahi Holdings Corp.     2,400       40,606  
ValueCommerce Co. Ltd.     2,400       45,768  
Vector Inc.(a)     3,600       30,204  
Wowow Inc.     1,200       26,934  
Zenrin Co. Ltd.     3,600       42,086  
              491,241  
Metals & Mining — 1.9%                
Aichi Steel Corp.     1,200       33,331  
Asahi Holdings Inc.     4,800       109,159  
Daido Steel Co. Ltd.     2,400       87,331  


20 2 0 2 0   i  S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

  

Schedule of Investments (unaudited) (continued) iShares® MSCI Japan Small-Cap ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
Metals & Mining (continued)                
Dowa Holdings Co. Ltd.     6,000     $ 198,304  
Godo Steel Ltd.     1,200       27,479  
Kobe Steel Ltd.     36,000       133,834  
Kyoei Steel Ltd.     2,400       36,379  
Mitsui Mining & Smelting Co. Ltd.     7,200       172,816  
Nakayama Steel Works Ltd.     2,400       9,145  
Neturen Co. Ltd.     3,600       22,728  
Nippon Denko Co. Ltd.(a)     12,000       16,243  
Nippon Light Metal Holdings Co. Ltd.     62,400       109,915  
Nittetsu Mining Co. Ltd.     1,200       42,776  
Osaka Steel Co. Ltd.     1,200       15,653  
OSAKA Titanium Technologies Co. Ltd     2,400       24,497  
Pacific Metals Co. Ltd.     1,200       21,749  
Sanyo Special Steel Co. Ltd     2,400       26,144  
Toho Titanium Co. Ltd.     3,600       24,063  
Toho Zinc Co. Ltd.     1,200       16,932  
Tokyo Steel Manufacturing Co. Ltd.     12,000       76,540  
Topy Industries Ltd.     1,200       16,799  
UACJ Corp.     3,614       63,525  
Yamato Kogyo Co. Ltd.     4,800       100,570  
Yodogawa Steel Works Ltd.     2,400       40,428  
              1,426,340  
Multiline Retail — 0.7%                
Fuji Co. Ltd./Ehime     2,400       35,778  
H2O Retailing Corp.     10,835       83,675  
Izumi Co. Ltd.     3,600       98,890  
Kintetsu Department Store Co. Ltd.     1,200       28,035  
Matsuya Co. Ltd.     3,600       21,327  
Seria Co. Ltd.     4,800       128,516  
Takashimaya Co. Ltd.     16,800       157,152  
              553,373  
Oil, Gas & Consumable Fuels — 0.6%                
Cosmo Energy Holdings Co. Ltd.     7,200       120,284  
Itochu Enex Co. Ltd.     6,000       46,836  
Iwatani Corp.     3,600       118,315  
Japan Petroleum Exploration Co. Ltd.     3,600       77,130  
Mitsuuroko Group Holdings Co. Ltd.     2,400       22,561  
San-Ai Oil Co. Ltd.     6,000       52,510  
Sinanen Holdings Co. Ltd.     1,200       22,328  
              459,964  
Paper & Forest Products — 0.5%                
Daiken Corp.     1,200       18,423  
Daio Paper Corp.     8,400       111,595  
Hokuetsu Corp.     14,400       58,607  
Nippon Paper Industries Co. Ltd.     12,000       173,995  
Tokushu Tokai Paper Co. Ltd.     1,200       39,939  
              402,559  
Personal Products — 1.2%                
Euglena Co. Ltd.(a)     8,400       60,275  
Fancl Corp.     8,400       206,992  
Kitanotatsujin Corp.     7,200       34,777  
Mandom Corp.     4,800       102,617  
Milbon Co. Ltd     2,400       115,923  
Noevir Holdings Co. Ltd.     1,200       51,175  
Rohto Pharmaceutical Co. Ltd.     10,800       307,384  
YA-MAN Ltd.     3,600       17,422  
              896,565  
Pharmaceuticals — 1.8%                
ASKA Pharmaceutical Co. Ltd.     2,400       21,671  
Security   Shares     Value  
             
Pharmaceuticals (continued)                
Fuji Pharma Co. Ltd.     1,200   $ 11,826  
JCR Pharmaceuticals Co. Ltd.     1,300       115,580  
Kaken Pharmaceutical Co. Ltd.     3,600       174,885  
Kissei Pharmaceutical Co. Ltd.     3,600       87,276  
KYORIN Holdings Inc.     4,800       96,209  
Mochida Pharmaceutical Co. Ltd.     2,400       84,439  
Nichi-Iko Pharmaceutical Co. Ltd.     6,050       65,175  
Sawai Pharmaceutical Co. Ltd.     4,800       272,340  
Seikagaku Corp.     4,800       45,079  
Sosei Group Corp.(a)     8,400       128,105  
Torii Pharmaceutical Co. Ltd.     1,200       35,878  
Towa Pharmaceutical Co. Ltd.     2,400       47,704  
Tsumura & Co.     7,200       167,943  
ZERIA Pharmaceutical Co. Ltd     3,600       59,174  
              1,413,284  
Professional Services — 2.6%                
Altech Corp.     1,380       20,777  
BayCurrent Consulting Inc.     1,200       71 ,645  
Benefit One Inc.     8,400       128,182  
BeNEXT Group Inc.     2,400       18,668  
en-japan Inc     3,600       99,324  
FULLCAST Holdings Co. Ltd.     2,400       42,052  
Funai Soken Holdings Inc.     4,800       1 10,672  
Insource Co. Ltd.     1,200       28,369  
IR Japan Holdings Ltd.     1,200       72,201  
JAC Recruitment Co. Ltd.     1,200       15,542  
Link And Motivation Inc.(b)     3,600       14,885  
Meitec Corp.     2,400       1 13,475  
Nihon M&A Center Inc.     15,600       474,371  
Nomura Co. Ltd.     9,600       87,487  
Outsourcing Inc.     12,000       87,554  
Pasona Group Inc.     2,400       24,631  
SMS Co. Ltd.     8,400       161,124  
S-Pool Inc.     6,000       37,324  
Tanseisha Co. Ltd.     3,600       32,641  
TechnoPro Holdings Inc.     3,700       220,220  
UT Group Co. Ltd.(b)     3,600       71 ,756  
WDB Holdings Co. Ltd.     1,200       24,531  
World Holdings Co. Ltd.     1,200       18,501  
YAMADA Consulting Group Co. Ltd.     1,200       14,474  
Yumeshin Holdings Co. Ltd.(b)     4,800       31 ,595  
              2,022,001  
Real Estate Management & Development — 2.3%
Daibiru Corp.     4,800       53,533  
Goldcrest Co. Ltd.     1,200       18,423  
Heiwa Real Estate Co. Ltd.     3,600       100,292  
Ichigo Inc.     30,000       91,225  
Japan Asset Marketing Co. Ltd.(a)     24,000       27,145  
Katitas Co. Ltd.     2,400       80,545  
Keihanshin Building Co. Ltd.     3,600       44,022  
Kenedix Inc.     25,200       135,970  
Leopalace21 Corp.(a)     28,800       87,843  
Open House Co. Ltd.     7,200       181,694  
Raysum Co. Ltd.     1,200       8,967  
Relo Group Inc.     12,000       262,662  
SAMTY Co. Ltd.     2,500       35,739  
Sun Frontier Fudousan Co. Ltd.     3,600       35,611  
Takara Leben Co. Ltd.     9,600       37,914  
TOC Co. Ltd.     4,800       30,438  


S c h e d u l e   o f   I n v e s t m e n t s 21

 

 

 

  

Schedule of Investments (unaudited) (continued) iShares® MSCI Japan Small-Cap ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
Real Estate Management & Development (continued)
Tokyo Tatemono Co. Ltd.     22,800     $ 311,356  
Tosei Corp.     3,600       38,782  
Unizo Holdings Co. Ltd.     3,600       197,914  
              1,780,075  
Road & Rail — 2.2%                
Fukuyama Transporting Co. Ltd.     3,600       108,135  
Hamakyorex Co. Ltd.     1,200       31,317  
Hitachi Transport System Ltd.     4,800       129,317  
Maruzen Showa Unyu Co. Ltd.     1,200       26,678  
Nankai Electric Railway Co. Ltd.     12,000       265,220  
Nikkon Holdings Co. Ltd.     7,200       139,308  
Nishi-Nippon Railroad Co. Ltd.     7,200       158,398  
Sakai Moving Service Co. Ltd.     1,200       57,183  
Sankyu Inc.     6,000       255,597  
Seino Holdings Co. Ltd.     16,800       182,228  
Senko Group Holdings Co. Ltd.     13,200       96,921  
Sotetsu Holdings Inc.     8,400       191,261  
Trancom Co. Ltd.     1,200       76,540  
              1,718,103  
Semiconductors & Semiconductor Equipment — 2.0%
Ferrotec Holdings Corp.     3,600       21,694  
Japan Material Co. Ltd.     7,200       85,707  
Lasertec Corp.     9,500       433,760  
Megachips Corp.     1,200       16,220  
Micronics Japan Co. Ltd.     3,600       31,673  
Mimasu Semiconductor Industry Co. Ltd.     1,200       22,217  
Mitsui High-Tec Inc.     2,400       30,460  
Optorun Co. Ltd.     2,400       63,746  
Rorze Corp.     1,200       36,824  
RS Technologies Co. Ltd.     1,200       26,266  
Sanken Electric Co. Ltd.     2,400       56,893  
SCREEN Holdings Co. Ltd.     4,900       248,487  
Shindengen Electric Manufacturing Co. Ltd.     1,200       33,431  
Shinko Electric Industries Co. Ltd.     7,200       79,232  
Tokyo Seimitsu Co. Ltd.     3,600       112,808  
Tri Chemical Laboratories Inc.     1,100       86,071  
Ulvac Inc.     4,800       139,730  
              1,525,219  
Software — 1.5%                
Broadleaf Co. Ltd.     10,800       44,355  
Computer Engineering & Consulting Ltd.     2,400       37,558  
Cybozu Inc.     2,400       40,473  
Digital Arts Inc.     1,200       56,849  
Fixstars Corp.     2,400       24,920  
Fuji Soft Inc.     2,400       79,321  
Fukui Computer Holdings Inc     1,200       29,926  
Gunosy Inc.(a)     1,200       10,936  
Infomart Corp.     24,000       141,955  
Justsystems Corp.     3,600       172,215  
Miroku Jyoho Service Co. Ltd.     2,400       53,467  
Money Forward Inc.(a)(b)     1,600       68,233  
OBIC Business Consultants Co. Ltd.     2,400       83,549  
Optim Corp.(a)     1,000       35,276  
PKSHA Technology Inc.(a)     1,200       26,667  
Rakus Co. Ltd.     4,800       67,685  
Sansan Inc.(a)     1,200       55,569  
Sourcenext Corp.     9,600       27,590  
Systena Corp     8,400       108,636  
Security   Shares     Value  
             
Software (continued)                
UNITED Inc./Japan     1,200     $ 10,658  
              1,175,838  
Specialty Retail — 2.6%                
Adastria Co. Ltd.     3,600       58,406  
Alpen Co. Ltd.     2,400       35,511  
AOKI Holdings Inc.     4,800       40,406  
Aoyama Trading Co. Ltd.     4,800       53,623  
Arcland Sakamoto Co. Ltd.     2,400       24,342  
Asahi Co. Ltd.     1,200       12,015  
Autobacs Seven Co. Ltd.     8,400       107,701  
Bic Camera Inc.     12,000       106,021  
Chiyoda Co. Ltd.     2,400       27,078  
DCM Holdings Co. Ltd.     12,000       109,359  
EDION Corp.     9,600       80,634  
Geo Holdings Corp.     3,600       39,149  
IDOM Inc.     6,000       28,480  
JINS Holdings Inc.     1,200       73,759  
Joshin Denki Co. Ltd.     2,400       40,072  
Joyful Honda Co. Ltd.     6,000       63,246  
Keiyo Co. Ltd.     4,800       20,960  
Kohnan Shoji Co. Ltd.     3,600       72,557  
Komeri Co. Ltd.     3,600       65,081  
K's Holdings Corp.     21,600       237,697  
LIXIL VIVA Corp.     2,600       48,908  
Nextage Co. Ltd.     3,600       28,335  
Nishimatsuya Chain Co. Ltd.     4,800       34,710  
Nojima Corp.     3,600       64,114  
PAL GROUP Holdings Co. Ltd.     2,400       32,240  
Sac's Bar Holdings Inc.     2,400       16,131  
Sanrio Co. Ltd.     6,000       90,780  
Shimachu Co. Ltd.     4,800       1 17,881  
T-Gaia Corp.     2,400       45,902  
Tokyo Base Co. Ltd.(a)     1,200       4,194  
United Arrows Ltd.     2,400       53,645  
VT Holdings Co. Ltd.     8,400       28,191  
World Co. Ltd.     2,400       44,789  
Xebio Holdings Co. Ltd.     2,400       21 ,872  
Yellow Hat Ltd.     3,600       48,594  
              1,976,383  
Technology Hardware, Storage & Peripherals — 0.6%
Eizo Corp.     1,200       38,437  
Elecom Co. Ltd.     2,400       80,768  
Maxell Holdings Ltd.     6,000       71 ,701  
MCJ Co. Ltd.     7,200       41 ,518  
Melco Holdings Inc.     1,200       23,707  
Riso Kagaku Corp.     2,400       37,269  
Roland DG Corp.     1,200       18,056  
Toshiba TEC Corp.     2,400       88,555  
Wacom Co. Ltd.     15,600       48,305  
              448,316  
Textiles, Apparel & Luxury Goods — 1.2%
Asics Corp.     18,900       203,079  
Descente Ltd.     3,600       49,228  
Fujibo Holdings Inc.     1,200       32,941  
Goldwin Inc.     2,400       146,405  
Gunze Ltd.     1,200       42,609  
Japan Wool Textile Co. Ltd. (The)     4,800       39,872  
Kurabo Industries Ltd.     2,400       43,321  
Onward Holdings Co. Ltd.     10,800       52,366  


22 2 0 2 0   i  S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI Japan Small-Cap ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
Textiles, Apparel & Luxury Goods (continued)
Seiko Holdings Corp.     2,400     $ 46,569  
Seiren Co. Ltd.     4,800       61,766  
TSI Holdings Co. Ltd.     7,200       27,902  
Wacoal Holdings Corp.     4,800       112,318  
Yondoshi Holdings Inc.     2,400       45,813  
              904,189  
Thrifts & Mortgage Finance — 0.1%                
Aruhi Corp.     3,600       52,866  
                 
Trading Companies & Distributors — 2.0%                
Advan Co. Ltd.     2,400       23,184  
Chori Co. Ltd.     1,200       19,825  
Daiichi Jitsugyo Co. Ltd.     1,200       37,102  
Gecoss Corp.     1,200       9,923  
Hanwa Co. Ltd.     3,600       73,926  
Inaba Denki Sangyo Co. Ltd.     4,800       106,400  
Inabata  o. Ltd.     ,800       55,93  
& C     4       7  
Japan Pulp & Paper Co. Ltd.     1,200       38,715  
Kamei Corp.     2,400       21,961  
Kanamoto Co. Ltd.     3,600       79,733  
Kanematsu Corp.     8,400       91,270  
Nagase & Co. Ltd.     12,000       144,291  
Nichiden Corp.     1,200       19,046  
Nippon Steel Trading Corp.     1,344       54,575  
Nishio Rent All Co. Ltd.     2,400       59,051  
Sojitz Corp.     151,200       437,347  
Trusco Nakayama Corp.     4,800       95,764  
Wakita & Co. Ltd.     4,800       38,804  
Yamazen Corp.     7,200       58,073  
Yuasa Trading Co. Ltd.     2,400       67,751  
              1,532,678  
Security   Shares     Value  
             
Transportation Infrastructure — 0.3%                
Mitsubishi Logistics Corp     7,200     $ 166,275  
Nissin Corp     1,200       16,465  
Sumitomo Warehouse Co. Ltd. (The)     7,200       84,305  
              267,045  
Total Common Stocks — 99.6%                
(Cost: $107,648,889)             76,194,819  
                 
Short-Term Investments                
                 
Money Market Funds — 1.0%                
BlackRock Cash Funds: Institutional, SL Agency Shares, 1.74% (c)(d)(e)     726,014       726,523  
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52% (c)(d)     39,000       39,000  
              765,523  
                 
Total Short-Term Investments — 1.0%                
(Cost: $765,026)             765,523  
                 
Total Investments in Securities — 100.6%                
(Cost: $108,413,915)             76,960,342  
                 
Other Assets, Less Liabilities — (0.6)%             (473,828 )
                 
Net Assets — 100.0%           $ 76,486,514  

 

(a) Non-income producing security.
(b) All or a portion of this security is on loan.
(c) Affiliate of the Fund.
(d) Annualized 7-day yield as of period-end.
(e) All or a portion of this security was purchased with cash collateral received from loaned securities.



Affiliates

 

Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

 

                                        Change in  
    Shares           Shares                       Unrealized  
    Held at           Held at     Value at           Net Realized     Appreciation  
Affiliated Issuer   08/31/19     Net Activity     02/29/20     02/29/20     Income     Gain (Loss) (a)   (Depreciation)  
BlackRock Cash Funds: Institutional, SL Agency Shares     3,094,708       (2,368,694 )     726,014     $ 726,523     $ 32,431 (b)   $ 1,094     $ (951 )
BlackRock Cash Funds: Treasury, SL Agency Shares     48,000       (9,000 )     39,000       39,000       616              
                            $ 765,523     $ 33,047     $ 1,094     $ (951 )

  

(a) Includes realized capital gain distributions from an affiliated fund, if any.
(b) Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

 

Futures Contracts

 

                      Value/  
                Notional     Unrealized  
    Number of     Expiration     Amount     Appreciation  
Description     Contracts       Date       (000 )     (Depreciation)  
Long Contracts                                
TOPIX Index     26       03/12/20     $ 361     $ (41,448 )

 

S c h e d u l e   o f   I n v e s t m e n t s 23

  

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI Japan Small-Cap ETF

February 29, 2020

 

Derivative Financial Instruments Categorized by Risk Exposure

 

As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

    Equity  
    Contracts  
       
Liabilities — Derivative Financial Instruments        
Futures contracts        
Unrealized depreciation on futures contracts(a)       $ 41,448  

 

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

 

For the six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

    Equity  
    Contracts  
Net Realized Gain (Loss) from:        
Futures contracts   $ 80,076  
         
Net Change in Unrealized Appreciation (Depreciation) on:        
Futures contracts   $ (28,554 )

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:        
Average notional value of contracts — long   $ 521,011  

 

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

 

Fair Value Measurements

 

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

 

The following table summarizes the value of the Fund's investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund's investments into major categories is disclosed in the Schedule of Investments above.

 

    Level 1     Level 2     Level 3     Total  
Investments                        
Assets                        
Common Stocks   $ 76,194,819     $     $     $ 76,194,819  
Money Market Funds     765,523                   765,523  
    $ 76,960,342     $     $     $ 76,960,342  
Derivative financial instruments(a)                                
Liabilities                                
Futures Contracts   $ (41,448 )   $     $     $ (41,448 )

 

(a) Shown at the unrealized appreciation (depreciation) on the contracts.

 

See notes to financial statements.

 

24 2 0 2 0   i  S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

 

Schedule of Investments (unaudited) iShares® MSCI Malaysia ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
Common Stocks                
                 
Airlines — 0.3%            
AirAsia Group Bhd     5,1 15,900     $ 1,213,737  
                 
Banks — 32.2%                
AMMB Holdings Bhd     5,639,037       4,950,044  
CIMB Group Holdings Bhd     16,884,512       19,308,030  
Hong Leong Bank Bhd     2,212,340       8,030,558  
Hong Leong Financial Group Bhd     780,800       2,834,221  
Malayan Banking Bhd     13,383,581       26,735,410  
Public Bank Bhd (a)     10,564,280       42,858,645  
RHB Bank Bhd     5,456,502       7,184,718  
RHB Capital Bhd(b)(c)     1,621,200       4  
              111,901,630  
Beverages — 2.2%                
Carlsberg Brewery Malaysia Bhd     520,200       3,929,577  
Fraser & Neave Holdings Bhd     499,300       3,639,027  
              7,568,604  
Chemicals — 3.0%                
Petronas Chemicals Group Bhd     8,164,100       10,459,345  
                 
Construction & Engineering — 2.6%                
Gamuda Bhd     5,891,100       4,626,225  
IJM Corp. Bhd     9,284,480       4,273,284  
              8,899,509  
Diversified Telecommunication Services — 1.0%
Telekom Malaysia Bhd     3,842,800       3,373,276  
                 
Electric Utilities — 8.8%                
Tenaga Nasional Bhd     10,639,512       30,542,846  
                 
Energy Equipment & Services — 2.8%                
Dialog Group Bhd     12,474,154       9,884,620  
                 
Food Products — 12.9%                
Genting Plantations Bhd     916,000       2,177,537  
IOI Corp. Bhd     6,413,230       6,344,761  
Kuala Lumpur Kepong Bhd     1,452,700       7,527,157  
Nestle Malaysia Bhd     239,400       8,121,993  
PPB Group Bhd      1,935,819       8,312,770  
QL Resources Bhd     2,207,700       4,273,982  
Sime Darby Plantation Bhd     7,025,855       8,267,673  
              45,025,873  
Gas Utilities — 3.0%                
Petronas Gas Bhd     2,692,500       10,616,690  
                 
Health Care Equipment & Supplies — 4.2%                
Hartalega Holdings Bhd     5,162,300       7,593,419  
Top Glove Corp. Bhd     5,226,000       6,992,797  
              14,586,216  
Health Care Providers & Services — 2.9%                
IHH Healthcare Bhd     7,461,300       10,090,014  
                 
Hotels, Restaurants & Leisure — 4.4%                
Genting Bhd     7,253,300       8,518,110  
Genting Malaysia Bhd     10,099,500       6,924,687  
              15,442,797  
Security   Shares     Value  
             
Industrial Conglomerates — 2.6%                
HAP Seng Consolidated Bhd     2,1 17,400     $ 4,501,045  
Sime Darby Bhd(a)     9,254,355       4,391,153  
              8,892,198  
Marine — 2.4%                
MISC Bhd     4,555,420       8,202,998  
                 
Metals & Mining — 1.5%                
Press Metal Aluminium Holdings Bhd (a)     4,807,900       5,315,496  
                 
Multi-Utilities — 0.5%                
YTL Corp. Bhd     9,368,762       1,878,198  
                 
Oil, Gas & Consumable Fuels — 1.6%                
Petronas Dagangan Bhd     1,013,900       5,494,063  
                 
Tobacco — 0.0%                
British American Tobacco Malaysia Bhd. .     1 1,800       34,826  
                 
Transportation Infrastructure — 2.2%                
Malaysia Airports Holdings Bhd     3,388,700       5,298,110  
Westports Holdings Bhd     2,900,200       2,366,948  
              7,665,058  
Wireless Telecommunication Services — 8.6%
Axiata Group Bhd     9,352,300       9,274,642  
DiGi.Com Bhd     10,579,200       10,441,156  
Maxis Bhd (a)     7,980,900       10,281,444  
              29,997,242  
Total Common Stocks — 99.7%                
(Cost: $254,190,935)             347,085,236  
                 
Short-Term Investments                
                 
Money Market Funds — 1.0%                
BlackRock Cash Funds: Institutional, SL Agency Shares, 1.74% (d)(e)(f)     3,058,522       3,060,663  
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52% (d)(e)     319,000       319,000  
              3,379,663  
Total Short-Term Investments — 1.0%                
(Cost: $3,377,812)             3,379,663  
                 
Total Investments in Securities — 100.7%                
(Cost: $257,568,747)             350,464,899  
                 
Other Assets, Less Liabilities — (0.7)%             (2,548,525 )
                 
Net Assets — 100.0%           $ 347,916,374  

  

(a) All or a portion of this security is on loan.
(b) Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.
(c) Non-income producing security.

(d) Affiliate of the Fund.
(e) Annualized 7-day yield as of period-end.
(f) All or a portion of this security was purchased with cash collateral received from loaned securities.



S c h e d u l e   o f   I n v e s t m e n t s 25

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI Malaysia ETF

February 29, 2020

 

Affiliates

 

Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

 

                                        Change in  
    Shares           Shares                       Unrealized  
    Held at           Held at     Value at           Net Realized     Appreciation  
Affiliated Issuer   08/31/19     Net Activity     02/29/20     02/29/20     Income     Gain (Loss) (a)   (Depreciation)  
BlackRock Cash Funds: Institutional, SL Agency Shares     3,581,320       (522,798 )     3,058,522     $ 3,060,663     $ 52,067 (b)   $ 737     $ 772  
BlackRock Cash Funds: Treasury, SL Agency Shares     198,000       121,000       319,000       319,000       3,198              
                            $ 3,379,663     $ 55,265     $ 737     $ 772  

 

(a) Includes realized capital gain distributions from an affiliated fund, if any.
(b) Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

 

Fair Value Measurements

   

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

 

The following table summarizes the value of the Fund's investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund's investments into major categories is disclosed in the Schedule of Investments above.

 

    Level 1     Level 2     Level 3     Total  
Investments                                
Assets                                
Common Stocks   $ 347,085,232     $     $ 4     $ 347,085,236  
Money Market Funds     3,379,663                   3,379,663  
                                 
    $ 350,464,895     $     $ 4     $ 350,464,899  

 

See notes to financial statements.

 

26 2 0 2 0   i  S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

  

 

 

 

Schedule of Investments (unaudited) iShares® MSCI Pacific ex Japan ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
Common Stocks                
                 
Australia — 56.0%            
AGL Energy Ltd.     815,904     $ 10,068,674  
Alumina Ltd.     3,092,620       3,868,295  
AMP Ltd.(a)     4,217,736       4,554,970  
APA Group     1,490,672       10,322,328  
Aristocrat Leisure Ltd.     730,103       15,585,997  
ASX Ltd.     244,587       11,691,688  
Aurizon Holdings Ltd.     2,483,589       7,734,249  
AusNet Services     2,355,344       2,574,040  
Australia & New Zealand Banking Group Ltd.     3,585,680       57,403,653  
Bendigo & Adelaide Bank Ltd.     619,118       3,668,430  
BHP Group Ltd.     3,726,430       80,727,876  
BlueScope Steel Ltd.     649,434       4,949,300  
Boral Ltd.     1,481,117       4,316,374  
Brambles Ltd.     1,967,197       15,169,467  
Caltex Australia Ltd.     315,479       6,651,345  
Challenger Ltd.     695,228       4,074,576  
CIMIC Group Ltd.     124,118       1,907,798  
Coca-Cola Amatil Ltd.     640,290       4,743,381  
Cochlear Ltd.     73,644       9,856,780  
Coles Group Ltd.     1,441,859       13,210,162  
Commonwealth Bank of Australia     2,239,310       118,073,546  
Computershare Ltd.     617,372       6,098,134  
Crown Resorts Ltd.     470,536       3,082,321  
CSL Ltd.     574,132       114,545,884  
Dexus     1,397,890       10,959,680  
Flight Centre Travel Group Ltd.     71,556       1,504,947  
Fortescue Metals Group Ltd.     1,763,626       11,461,945  
Goodman Group     2,089,343       20,179,613  
GPT Group (The)     2,461,002       9,171,304  
Harvey Norman Holdings Ltd.     726,215       1,737,122  
Incitec Pivot Ltd.     2,028,739       3,570,920  
Insurance Australia Group Ltd.     2,937,535       12,083,563  
James Hardie Industries PLC     559,111       10,176,541  
Lendlease Group     712,888       8,103,356  
Macquarie Group Ltd.     425,870       37,021,573  
Magellan Financial Group Ltd.     161,096       5,791,603  
Medibank Pvt Ltd.     3,479,389       6,348,640  
Mirvac Group     4,970,117       9,741,627  
National Australia Bank Ltd.     3,647,083       59,021,555  
Newcrest Mining Ltd.     970,645       16,459,152  
Oil Search Ltd.     1,733,720       6,136,809  
Orica Ltd.     480,819       6,138,158  
Origin Energy Ltd.     2,225,103       10,013,752  
Qantas Airways Ltd.     918,116       3,273,512  
QBE Insurance Group Ltd.     1,661,017       14,554,082  
Ramsay Health Care Ltd.     204,248       8,956,161  
REA Group Ltd.     67,159       4,257,331  
Rio Tinto Ltd.     470,394       26,467,811  
Santos Ltd.     2,253,693       9,924,457  
Scentre Group     6,646,074       14,826,292  
Seek Ltd.     422,492       5,633,267  
Sonic Healthcare Ltd.     568,981       10,565,293  
South32 Ltd.     6,252,280       8,949,168  
Stockland     3,012,374       9,147,893  
Suncorp Group Ltd.     1,592,946       11,646,767  
Sydney Airport     1,414,156       7,084,507  
Tabcorp Holdings Ltd.     2,551,168       6,234,040  
Telstra Corp. Ltd.     5,259,068       11,630,388  
Security   Shares     Value  
             
Australia (continued)                
TPG Telecom Ltd.     473,502     $ 2,298,836  
Transurban Group .     3,434,706       32,885,716  
Treasury Wine Estates Ltd .     909,323       6,466,734  
Vicinity Centres . .     4,050,510       5,640,982  
Washington H Soul Pattinson & Co. Ltd.     153,104       1,926,893  
Wesfarmers Ltd. .     1,435,890       37,633,361  
Westpac Banking Corp. .     4,514,593       68,810,919  
WiseTech Global Ltd.(b)       183,899       1,790,390  
Woodside Petroleum Ltd.. .     1,186,779       21,363,704  
Woolworths Group Ltd     1,594,000       39,875,976  
Worley Ltd     426,211       3,440,490  
              1,135,786,098  
China — 0.2%                
Budweiser Brewing Co. APAC Ltd.(a)(b)(c)     1,673,000       5,023,476  
                 
Hong Kong — 30.2%                
AIA Group Ltd     15,292,014       150,898,028  
ASM Pacific Technology Ltd. .     384,200       4,552,886  
Bank of East Asia Ltd. (The)(b)     1,674,720       3,558,730  
BeiGene Ltd., ADR(a)     49,138       7,781,002  
BOC Hong Kong Holdings Ltd     4,675,500       16,048,867  
CK Asset Holdings Ltd. .     3,265,732       20,408,075  
CK Hutchison Holdings Ltd     3,421,732       29,791,226  
CK Infrastructure Holdings Ltd     837,708       5,707,944  
CLP Holdings Ltd.. .     2,075,500       21,785,553  
Dairy Farm International Holdings Ltd. .     438,400       2,104,320  
Galaxy Entertainment Group Ltd.     2,737,000       18,069,774  
Hang Lung Properties Ltd.     2,559,736       5,590,457  
Hang Seng Bank Ltd     97 1,000       20,247,207  
Henderson Land Development Co. Ltd     1,836,442       8,424,532  
HK Electric Investments & HK Electric Investments Ltd     3,382,000       3,402,375  
HKT Trust & HKT Ltd     4,785,338       7,159,846  
Hong Kong & China Gas Co. Ltd.     12,828,366       24,691,936  
Hong Kong Exchanges & Clearing Ltd.     1,518,000       49,827,013  
Hongkong Land Holdings Ltd     1,474,500       7,239,795  
Jardine Matheson Holdings Ltd. .     278,200       15,134,080  
Jardine Strategic Holdings Ltd     280,100       8,041,671  
Kerry Properties Ltd .     845,500       2,403,145  
Link REIT     2,652,386       24,573,469  
Melco Resorts & Entertainment Ltd., ADR     268,728       4,659,744  
MTR Corp. Ltd.     1,944,786       10,942,938  
New World Development Co. Ltd.     7,751,921       9,967,118  
NWS Holdings Ltd.     2,009,000       2,456,775  
PCCW Ltd. .     5,431,867       3,268,997  
Power Assets Holdings Ltd.(b)     1,754,000       12,491,515  
Sands China Ltd.     3,065,600       14,259,885  
Sino Land Co. Ltd     3,876,800       5,273,170  
SJM Holdings Ltd.     2,540,000       2,874,715  
Sun Hung Kai Properties Ltd     2,013,500       28,627,534  
Swire Pacific Ltd., Class A .     630,000       5,675,057  
Swire Properties Ltd.     1,478,800       4,373,941  
Techtronic Industries Co. Ltd     1,735,207       14,038,766  
Vitasoy International Holdings Ltd.(b)     944,000       3,385,683  
WH Group Ltd.(c)     12,088,000       12,284,915  
Wharf Real Estate Investment Co. Ltd. .     1,535,600       6,965,625  
Wheelock & Co. Ltd.     1,037,000       7,897,543  
Wynn Macau Ltd     1,995,200       4,019,561  
Yue Yuen Industrial Holdings Ltd.     907,000       2,185,724  
              613,091,137  


S c h e d u l e   o f   I n v e s t m e n t s 27

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI Pacific ex Japan ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
Malta — 0.0%                
BGP Holdings PLC(a)(d)     27,004,595     $ 297  
                 
New Zealand — 2.4%                
a2 Milk Co. Ltd.(a)     928,809       9,390,329  
Auckland International Airport Ltd.     1,224,296       5,976,239  
Fisher & Paykel Healthcare Corp. Ltd.     725,152       11,595,214  
Fletcher Building Ltd.     1,049,560       3,378,636  
Mercury NZ Ltd.     874,354       2,594,992  
Meridian Energy Ltd.     1,619,038       4,639,443  
Ryman Healthcare Ltd .     513,515       4,857,243  
Spark New Zealand Ltd.     2,319,834       6,525,308  
              48,957,404  
Singapore — 10.7%                
Ascendas REIT     3,649,705       8,001,789  
CapitaLand Commercial Trust     3,397,293       4,527,452  
CapitaLand Ltd.     3,281,400       8,299,307  
CapitaLand Mall Trust     3,262,300       5,305,883  
City Developments Ltd.     574,600       4,022,241  
ComfortDelGro Corp. Ltd.     2,737,000       3,823,995  
DBS Group Holdings Ltd.     2,275,400       39,306,365  
Genting Singapore Ltd.     7,639,900       4,461,216  
Jardine Cycle & Carriage Ltd.     124,200       2,389,317  
Keppel Corp. Ltd.     1,836,700       8,343,253  
Mapletree Commercial Trust     2,528,000       3,803,683  
Oversea-Chinese Banking Corp. Ltd.     4,182,524       31,765,246  
SATS Ltd.(b)     876,800       2,531,707  
Sembcorp Industries Ltd.(b)     1,264,440       1,657,896  
Singapore Airlines Ltd.     682,300       3,910,869  
Singapore Exchange Ltd.     1,016,700       6,184,555  
Singapore Press Holdings Ltd.(b)     2,066,817       2,798,799  
Singapore Technologies Engineering Ltd.     1,972,600       5,893,632  
Singapore Telecommunications Ltd.     10,355,328       22,258,354  
Suntec REIT     2,474,500       3,014,007  
United Overseas Bank Ltd.     1,597,700       28,022,996  
UOL Group Ltd.(b)     592,200       3,127,115  
Security   Shares     Value  
             
Singapore (continued)                
Venture Corp. Ltd.     352,600   $ 4,155,814  
Wilmar International Ltd.     2,427,200       6,904,051  
Yangzijiang Shipbuilding Holdings Ltd     2,980,400       2,017,968  
              216,527,510  
Total Common Stocks — 99.5%                
(Cost: $2,217,231,836)             2,019,385,922  
                 
Short-Term Investments                
                 
Money Market Funds — 0.8%                
BlackRock Cash Funds: Institutional, SL Agency Shares, 1.74% (e)(f)(g)     15,172,776       15,183,397  
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52% (e)(f)     823,000       823,000  
              16,006,397  
Total Short-Term Investments — 0.8%                
(Cost: $15,999,406)             16,006,397  
                 
Total Investments in Securities — 100.3%                
(Cost: $2,233,231,242)             2,035,392,319  
                 
Other Assets, Less Liabilities — (0.3)%             (5,652,794 )
                 
Net Assets — 100.0%           $ 2,029,739,525  

 

(a) Non-income producing security.
(b) All or a portion of this 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) Affiliate of the Fund.
(f) Annualized 7-day yield as of period-end.
(g) All or a portion of this security was purchased with cash collateral received from loaned securities.


Affiliates

 

Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

 

                                        Change in  
    Shares           Shares                       Unrealized  
    Held at           Held at     Value at           Net Realized     Appreciation  
Affiliated Issuer   08/31/19     Net Activity     02/29/20     02/29/20     Income     Gain (Loss) (a)   (Depreciation)  
BlackRock Cash Funds: Institutional, SL Agency Shares     10,671,267       4,501,509       15,172,776     $ 15,183,397     $ 64,858 (b)   $ 440     $ 1,739  
BlackRock Cash Funds: Treasury, SL Agency Shares     831,000       (8,000 )     823,000       823,000       10,054              
                                                         
                            $ 16,006,397     $ 74,912     $ 440     $ 1,739  

  

(a) Includes realized capital gain distributions from an affiliated fund, if any.
(b) Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

 

28 2 0 2 0   i  S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI Pacific ex Japan ETF

February 29, 2020

 

Futures Contracts

                         
                      Value/  
                Notional     Unrealized  
    Number of     Expiration     Amount     Appreciation  
Description     Contracts       Date       (000 )     (Depreciation)  
Long Contracts                                
ASX SPI 200 Index     58       03/19/20     $ 5,959     $ (469,671 )
Hang Seng Index     16       03/30/20       2,686       (55,480 )
MSCI Sing Index     63       03/30/20       1,553       (76,783 )
                            $ (601,934 )

 

Derivative Financial Instruments Categorized by Risk Exposure

 

As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

         
      Equity  
      Contracts  
Liabilities — Derivative Financial Instruments        
Futures contracts        
Unrealized depreciation on futures contracts(a)   $ 60 1,934  

 

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

 

For the six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

    Equity  
    Contracts  
Net Realized Gain (Loss) from:        
Futures contracts   $ 673,083  
         
Net Change in Unrealized Appreciation (Depreciation) on:        
Futures contracts   $ (713,410)  

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:      
Average notional value of contracts — long   $ 13,864,586  

 

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

 

Statements. Fair Value Measurements

 

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

 

The following table summarizes the value of the Fund's investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund's investments into major categories is disclosed in the Schedule of Investments above.

  

    Level 1     Level 2     Level 3     Total  
Investments                                
Assets                                
Common Stocks   $ 2,019,385,625     $     $ 297     $ 2,019,385,922  
Money Market Funds     16,006,397                   16,006,397  
                                 
    $ 2,035,392,022     $     $ 297     $ 2,035,392,319  
Derivative financial instruments(a)                                
Liabilities                                
Futures Contracts   $ (601,934 )   $     $     $ (601,934 )

  

(a) Shown at the unrealized appreciation (depreciation) on the contracts.

 

See notes to financial statements.

 

S c h e d u l e   o f   I n v e s t m e n t s 29

 

 

 

 

Schedule of Investments (unaudited) iShares® MSCI Singapore ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
Common Stocks                
                 
Aerospace & Defense — 3.4%                
Singapore Technologies Engineering Ltd.     5,618,400     $ 16,786,364  
                 
Airlines — 2.4%                
Singapore Airlines Ltd.     2,061,367       11,815,531  
                 
Banks — 45.4%                
DBS Group Holdings Ltd.     5,183,200       89,537,115  
Oversea-Chinese Banking Corp. Ltd.     9,540,150       72,455,105  
United Overseas Bank Ltd.     3,636,700       63,786,212  
              225,778,432  
Capital Markets — 3.5%                
Singapore Exchange Ltd.     2,840,300       17,277,457  
                 
Distributors — 1.6%                
J ardine C cle & Carria e Ltd.     425,344       8,182,62 3  
                 
Diversified Telecommunication Services — 4.5%
Singapore Telecommunications Ltd.     10,392,968       22,339,259  
                 
Electronic Equipment, Instruments & Components — 2.5%
Venture Corp. Ltd.     1,064,800       12,549,946  
                 
Equity Real Estate Investment Trusts (REITs) — 10.2%
Ascendas REIT     9,792,549       21,469,657  
CapitaLand Commercial Trust     3,108,983       4,143,232  
CapitaLand Mall Trust     3,601,800       5,858,054  
Mapletree Commercial Trust     6,153,900       9,259,289  
Suntec REIT     8,295,900       10,104,628  
              50,834,860  
Food Products — 3.9%                
Wilmar International Ltd.     6,740,300       19,172,452  
                 
Hotels, Restaurants & Leisure — 2.6%                
Genting Singapore Ltd.(a)     22,366,942       13,060,871  
                 
Industrial Conglomerates — 5.7%                
Keppel Corp. Ltd.     4,904,800       22,280,169  
Sembcorp Industries Ltd.(a)     4,470,700       5,861,848  
              28,142,017  
Machinery — 1.4%                
Yangzijiang Shipbuilding Holdings Ltd.     10,552,500       7,144,883  
Security   Shares     Value  
             
Media — 1.7%            
Singapore Press Holdings Ltd.(a)     6,243,700     $ 8,454,964  
                 
Real Estate Management & Development — 6.9%
CapitaLand Ltd.     4,782,200       12,095,125  
City Developments Ltd.     1,748,500       12,239,625  
UOL Group Ltd.     1,924,000       10,159,691  
              34,494,441  
Road & Rail — 2.4%                
ComfortDelGro Corp. Ltd.     8,413,400       11,754,768  
                 
Transportation Infrastructure — 1.7%                
SATS Ltd.     2,882,400       8,322,757  
                 
Total Common Stocks — 99.8%                
(Cost: $571,216,069)             496,111 ,625  
                 
Short-Term Investments                
                 
Money Market Funds — 1.7%                
BlackRock Cash Funds: Institutional, SL Agency Shares, 1.74% (b)(c)(d)     7,949,549       7,955,113  
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52% (b)(c)     263,000       263,000  
              8,218,113  
Total Short-Term Investments — 1.7%                
(Cost: $8,213,549)             8,218,113  
                 
Total Investments in Securities — 101.5%                
(Cost: $579,429,618)             504,329,738  
                 
Other Assets, Less Liabilities — (1.5)%             (7,267,411 )
                 
Net Assets — 100.0%           $ 497,062,327  

  

(a) All or a portion of this security is on loan.
(b) Affiliate of the Fund.
(c) Annualized 7-day yield as of period-end.
(d) All or a portion of this security was purchased with cash collateral received from loaned securities.


Affiliates

 

Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

 

                                        Change in  
    Shares           Shares                       Unrealized  
    Held at           Held at     Value at           Net Realized     Appreciation  
Affiliated Issuer   08/31/19     Net Activity     02/29/20     02/29/20     Income     Gain (Loss) (a)    (Depreciation)  
BlackRock Cash Funds: Institutional, SL Agency Shares     15,443,253       (7,493,704 )     7,949,549     $ 7,955,113     $ 84,945 (b)   $ 430     $ (111 )
BlackRock Cash Funds: Treasury, SL Agency Shares     236,000       27,000       263,000       263,000       2,932              
                            $ 8,218,113     $ 87,877     $ 430     $ (111 )

 

(a) Includes realized capital gain distributions from an affiliated fund, if any.

(b) Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

 

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Schedule of Investments (unaudited) (continued) iShares® MSCI Singapore ETF
February 29, 2020  

 

Futures Contracts

                                 
                              Value/  
                      Notional       Unrealized  
      Number of       Expiration       Amount       Appreciation  
Description     Contracts       Date       (000)     (Depreciation)  
Long Contracts                                
MSCI Sing Index     39       03/30/20     $ 961     $ (50,437 )

 

Derivative Financial Instruments Categorized by Risk Exposure

 

As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

    Equity  
    Contracts  
Liabilities — Derivative Financial Instruments        
Futures contracts        
Unrealized depreciation on futures contracts(a)   $ 50,437  

 

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

 

For the six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

    Equity  
    Contracts  
Net Realized Gain (Loss) from:        
Futures contracts   $ 144,400  
         
Net Change in Unrealized Appreciation (Depreciation) on:        
Futures contracts   $ (113,534 )

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:      
Average notional value of contracts — long   $ 2,484,422  

 

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

 

Fair Value Measurements

 

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

 

The following table summarizes the value of the Fund's investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund's investments into major categories is disclosed in the Schedule of Investments above.

 

    Level 1     Level 2     Level 3     Total  
Investments                        
Assets                        
Common Stocks    $ 496,111,625     $     $     $ 496,111,625  
Money Market Funds     8,218,113                   8,218,113  
    $ 504,329,738     $     $     $ 504,329,738  
Derivative financial instruments(a)                                
Liabilities                                
Futures Contracts   $ (50,437 )   $     $     $ (50,437 )

 

(a) Shown at the unrealized appreciation (depreciation) on the contracts.

 

See notes to financial statements

 

S c h e d u l e   o f   I n v e s t m e n t s 31

  

 

 

  

Schedule of Investments (unaudited) iShares® MSCI Taiwan ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
Common Stocks                
                 
Airlines — 0.5%                
China Airlines Ltd.     33,028,761 $     8,900,896  
Eva Airways Corp.     24,898,101       9,908,424  
              18,809,320  
Auto Components — 0.5%                
Cheng Shin Rubber Industry Co. Ltd.     14,170,670       18,509,222  
                 
Banks — 13.1%                
Chang Hwa Commercial Bank Ltd.     34,390,576       26,349,886  
CTBC Financial Holding Co. Ltd.     102,265,325       76,666,487  
E.Sun Financial Holding Co. Ltd.     59,730,826       57,305,454  
First Financial Holding Co. Ltd.     58,825,013       46,042,795  
Hua Nan Financial Holdings Co. Ltd.     47,965,103       34,136,890  
Mega Financial Holding Co. Ltd.     61,540,271       65,748,370  
Shanghai Commercial & Savings Bank Ltd. (The)     20,815,306       34,578,176  
SinoPac Financial Holdings Co. Ltd.     66,970,724       28,752,767  
Taishin Financial Holding Co. Ltd.     61,540,660       28,860,363  
Taiwan Business Bank(a)     43,440,950       17,215,984  
Taiwan Cooperative Financial Holding Co. Ltd.     54,300,400       37,569,755  
              453,226,927  
Chemicals — 5.5%                
Formosa Chemicals & Fibre Corp.(a)     19,910,610       54,051,492  
Formosa Plastics Corp.     24,435,518       73,436,884  
Nan Ya Plastics Corp.     28,055,938       63,099,106  
              190,587,482  
Communications Equipment — 0.5%                
Accton Technology Corp.     3,498,000       18,888,126  
                 
Construction Materials — 1.8%                
Asia Cement Corp.(a)     15,385,136       22,534,414  
Taiwan Cement Corp.     28,960,139       40,409,051  
              62,943,465  
Diversified Financial Services — 1.9%                
Chailease Holding Co. Ltd.     7,441,863       28,263,817  
Yuanta Financial Holding Co. Ltd.     58,825,248       37,300,641  
              65,564,458  
Diversified Telecommunication Services — 2.1%
Chunghwa Telecom Co. Ltd.     20,815,648       74,244,621  
                 
Electrical Equipment — 0.0%                
Ya Hsin Industrial Co. Ltd.(b)(c)     6,845,461       2  
                 
Electronic Equipment, Instruments & Components — 13.3%
AU Optronics Corp.(a)     64,255,830       20,159,857  
Delta Electronics Inc.(a)     1 1,852,180       54,799,624  
Foxconn Technology Co. Ltd.     7,154,499       14,058,775  
Hon Hai Precision Industry Co. Ltd.     70,590,002       187,201,809  
Innolux Corp.(a)     66,065,873       17,236,757  
Largan Precision Co. Ltd.     541,794       79,266,415  
Pacific Electric Wire & Cable Co. Ltd.(b)(c)     197       0 (d)
Synnex Technology International Corp     1 1,765,364       14,609,808  
Walsin Technology Corp.(a)     2,629,000       18,493,601  
WPG Holdings Ltd.     1 1,679,604       14,966,186  
Yageo Corp.(a)     1,810,125       24,510,023  
Zhen Ding Technology Holding Ltd.     3,628,072       13,839,143  
            459,141,998  
Food & Staples Retailing — 1.0%                
President Chain Store Corp.     3,620,215       35,449,520  
Security   Shares     Value  
             
Food Products — 2.2%                
Standard Foods Corp     4,525,056   $ 10,147,172  
Uni-President Enterprises Corp.     27,150,189       65,634,962  
              75,782,134  
Household Durables — 0.7% Nien                
Made Enterprise Co. Ltd.     1,328,000       10,701,365  
Tatung Co. Ltd.(a)(c)     18,006,000       12,517,588  
              23,218,953  
Industrial Conglomerates — 0.6%                
Far Eastern New Century Corp.(a)     22,539,843       21,029,098  
                 
Insurance — 5.2%                
Cathay Financial Holding Co. Ltd.     47,060,315       62,245,599  
China Development Financial Holding Corp.     84,165,508       25,461,320  
China Life Insurance Co. Ltd.(c)     20,721,479       16,526,816  
Fubon Financial Holding Co. Ltd.     37,105,515       54,470,521  
Shin Kong Financial Holding Co. Ltd.(a)     68,780,049       20,920,565  
              179,624,821  
Leisure Products — 0.4%                
Giant Manufacturing Co. Ltd.     2,715,590       14,753,036  
                 
Machinery — 0.9%                
Airtac International Group     905,000       14,391,172  
Hiwin Technologies Corp.     1,637,339       16,303,364  
              30,694,536  
Marine — 0.3%                
Evergreen Marine Corp. Taiwan Ltd.(c)     26,245,533       10,011,259  
                 
Metals & Mining — 1.6%                
China Steel Corp.(a)     71,495,977       54,307,616  
                 
Oil, Gas & Consumable Fuels — 0.7%                
Formosa Petrochemical Corp.(a)     8,059,950       22,918,532  
                 
Real Estate Management & Development — 0.6%
Highwealth Construction Corp.(a)     8,056,790       11,933,719  
Ruentex Development Co. Ltd .     6,249,076       8,471,889  
              20,405,608  
Semiconductors & Semiconductor Equipment — 33.2%
ASE Technology Holding Co. Ltd.(a)     19,910,432       46,883,661  
Globalwafers Co. Ltd.(a)     1,450,000       19,609,802  
MediaTek Inc.     8,403,175       99,907,297  
Nanya Technology Corp.     9,050,000       23,103,585  
Novatek Microelectronics Corp.(a)     3,620,544       23,376,091  
Phison Electronics Corp.     1,254,698       13,819,310  
Powertech Technology Inc.     5,430,036       18,291,705  
Realtek Semiconductor Corp.     3,1 13,063       23,132,455  
Taiwan Semiconductor Manufacturing Co. Ltd.     75,609,882       789,072,564  
United Microelectronics Corp.(a)     71,495,501       36,126,130  
Vanguard International Semiconductor Corp.(a)     7,154,000       17,530,897  
Win Semiconductors Corp.     2,715,000       24,523,275  
Winbond Electronics Corp.     24,435,000       12,911,706  
              1,148,288,478  
Specialty Retail — 1.1%                
Hotai Motor Co. Ltd.     1,810,000       37,479,813  
                 
Technology Hardware, Storage & Peripherals — 8.1%
Acer Inc.(a)     23,530,737       12,705,875  
Advantech Co. Ltd.     2,425,614       23,591,649  
Asustek Computer Inc.     4,525,857       30,790,685  
Catcher Technology Co. Ltd.     3,797,743       29,725,230  


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Schedule of Investments (unaudited) (continued) iShares® MSCI Taiwan ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
Technology Hardware, Storage & Peripherals (continued)
Chicony Electronics Co. Ltd.     5,385,405     $ 14,851,015  
Compal Electronics Inc.(a)     29,779,554       18,145,371  
Inventec Corp.     19,910,868       15,091,214  
Lite-On Technology Corp.     14,480,071       20,969,670  
Micro-Star International Co. Ltd.     5,430,000       16,283,096  
Pegatron Corp.     12,670,037       26,235,946  
Quanta Computer Inc.     16,290,240       33,355,732  
Wistron Corp.     19,910,921       17,787,295  
Wiwynn Corp.     819,000       19,582,754  
              279,115,532  
Textiles, Apparel & Luxury Goods — 1.9%                
Eclat Textile Co. Ltd.     1,297,601       15,427,479  
Feng TAY Enterprise Co. Ltd.(a)     2,715,623       15,336,169  
Formosa Taffeta Co. Ltd.(a)     8,956,515       9,909,122  
Pou Chen Corp.     16,290,103       18,345,498  
Ruentex Industries Ltd.     3,620,157       8,082,122  
              67,100,390  
Transportation Infrastructure — 0.5%                
Taiwan High Speed Rail Corp.     14,480,000       16,498,291  
                 
Wireless Telecommunication Services — 1.7%
Far EasTone Telecommunications Co. Ltd.     10,860,259       23,707,892  
Taiwan Mobile Co. Ltd.     9,955,609       34,522,993  
              58,230,885  
Total Common Stocks — 99.9%                
(Cost: $1,757,862,596)             3,456,824,123  
Security   Shares     Value  
             
Short-Term Investments                
                 
Money Market Funds — 3.4%                
BlackRock Cash Funds: Institutional, SL Agency Shares, 1.74%(e)(f)(g)     116,590,653     $ 116,672,267  
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52% (e)(f)     2,896,000       2,896,000  
              119,568,267  
Total Short-Term Investments — 3.4%                
(Cost: $119,511,109)             119,568,267  
                 
Total Investments in Securities — 103.3%                
(Cost: $1,877,373,705)             3,576,392,390  
                 
Other Assets, Less Liabilities — (3.3)%             (115,465,400 )
                 
Net Assets — 100.0%           $ 3,460,926,990  

 

(a) All or a portion of this security is on loan.
(b) Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.
(c) Non-income producing security.
(d) Rounds to less than $1.
(e) Affiliate of the Fund.
(f) Annualized 7-day yield as of period-end.
(g) All or a portion of this security was purchased with cash collateral received from loaned securities.


Affiliates

 

Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

 

                                        Change in  
    Shares           Shares                       Unrealized  
    Held at           Held at     Value at           Net Realized     Appreciation  
Affiliated Issuer   08/31/19     Net Activity     02/29/20     02/29/20     Income     Gain (Loss (a)   (Depreciation)  
BlackRock Cash Funds: Institutional, SL Agency Shares     155,033,037       (38,442,384 )     116,590,653     $ 116,672,267     $ 1,153,324 (b)   $ 591     $ 16,231  
BlackRock Cash Funds: Treasury, SL Agency Shares .     14,551,000       (11,655,000 )     2,896,000       2,896,000       60,474              
                            $ 119,568,267     $ 1,213,798     $ 591     $ 16,231  

 

(a) Includes realized capital gain distributions from an affiliated fund, if any.
(b) Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

 

Futures Contracts

 

                      Value/  
                Notional     Unrealized  
    Number of     Expiration     Amount     Appreciation  
Description     Contracts       Date       (000)     (Depreciation)  
Long Contracts                                
MSCI Taiwan Index     16       03/30/20     $ 674     $ (42,529 )

 

S c h e d u l e   o f   I n v e s t m e n t s 33

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI Taiwan ETF
February 29, 2020

 

 

Derivative Financial Instruments Categorized by Risk Exposure

 

As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

    Equity  
    Contracts  
Liabilities — Derivative Financial Instruments        
Futures contracts        
Unrealized depreciation on futures contracts(a)   $ 42,529  

 

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

 

For the six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

    Equity  
    Contracts  
Net Realized Gain (Loss) from:        
Futures contracts   $ 1,386,420  
         
Net Change in Unrealized Appreciation (Depreciation) on:        
Futures contracts   $ (31 9,277)  

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:      
Average notional value of contracts — long   $ 8,668,027  

 

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

 

Fair Value Measurements

 

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

 

The following table summarizes the value of the Fund's investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund's investments into major categories is disclosed in the Schedule of Investments above.

 

    Level 1     Level 2     Level 3     Total  
Investments                        
Assets                        
Common Stocks   $ 3,456,824,121     $     $ 2     $ 3,456,824,123  
Money Market Funds     1 19,568,267                   119,568,267  
    $ 3,576,392,388     $     $ 2     $ 3,576,392,390  
Derivative financial instruments(a)                                
Liabilities                                
Futures Contracts   $ (42,529 )   $     $     $ (42,529 )

 

(a) Shown at the unrealized appreciation (depreciation) on the contracts.

 

See notes to financial statements

 

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Schedule of Investments (unaudited) iShares® MSCI Thailand ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
Common Stocks                
                 
Airlines — 0.2%                
Asia Aviation PCL, NVDR(a)(b)     6,467,600     $ 264,402  
Bangkok Airways PCL, NVDR     1,725,500       254,820  
Thai Airways International PCL, NVDR(a)(b)     2,038,966       252,003  
              771,225  
Auto Components — 0.2%                
Sri Trang Agro-Industry PCL, NVDR     2,180,145       815,266  
                 
Banks — 9.4%                
Bangkok Bank PCL, Foreign     1,1 19,800       4,666,573  
Kasikornbank PCL, NVDR     1,404,000       5,294,755  
Kasikornbank PCL     2,751,800       10,421,173  
Kiatnakin Bank PCL, NVDR(b)     500,473       987,306  
Krung Thai Bank PCL, NVDR     8,198,900       3,637,604  
Siam Commercial Bank PCL (The), NVDR     1,991,900       5,507,630  
Thanachart Capital PCL, NVDR(b)     680,300       1,137,247  
TMB Bank PCL, NVDR(b)     56,528,366       1,952,651  
              33,604,939  
Beverages — 0.6%                
Osotspa PCL, NVDR     1,762,200       2,331,543  
                 
Building Products — 0.1%                
Dynasty Ceramic PCL, NVDR     5,986,440       326,309  
                 
Chemicals — 3.1%                
Eastern Polymer Group PCL, NVDR     2,382,000       304,968  
Global Green Chemicals PCL, NVDR(b)     721,100       211,383  
Indorama Ventures PCL, NVDR(b)     3,946,810       3,252,006  
PTT Global Chemical PCL, NVDR     5,290,307       6,915,708  
Vinythai PCL, NVDR(b)     556,400       410,842  
              11,094,907  
Commercial Services & Supplies — 0.1%                
JMT Network Services PCL, NVDR     734,700       423,754  
                 
Construction & Engineering — 1.0% CH                
Karnchang PCL, NVDR(b)     2,772,900       1,652,053  
Italian-Thai Development PCL, NVDR(b)     9,366,248       344,315  
Sino-Thai Engineering & Construction PCL, NVDR     2,343,628       1,106,641  
Unique Engineering & Construction PCL, NVDR     1,533,400       306,145  
              3,409,154  
Construction Materials — 5.5%                
Siam Cement PCL (The) NVDR     1,830,300       17,981,081  
Tipco Asphalt PCL, NVDR     1,490,600       888,077  
TPI Polene PCL, NVDR(b)     15,870,000       628,664  
              19,497,822  
Consumer Finance — 2.1%                
AEON Thana Sinsap Thailand PCL, NVDR(b)     177,400       778,637  
Muangthai Capital PCL, NVDR     1,492,400       2,719,474  
Ratchthani Leasing PCL, NVDR     3,123,685       504,858  
Srisawad Corp PCL, NVDR     1,710,360       3,645,119  
              7,648,088  
Containers & Packaging — 0.1%                
Polyplex Thailand PCL, NVDR(b)     655,000       236,634  
                 
Diversified Telecommunication Services — 1.2%
Jasmine International PCL, NVDR(b)     8,585,768       1,316,911  
True Corp. PCL, NVDR(b)     27,405,218       2,883,388  
              4,200,299  
Security   Shares     Value  
             
Electrical Equipment — 0.2%                
Gunkul Engineering PCL, NVDR(b)     9,448,922   $ 736,630  
                 
Electronic Equipment, Instruments & Components — 0.8%
Hana Microelectronics PCL, NVDR     1,319,000       1,400,301  
KCE Electronics PCL, NVDR(b)     1,783,400       1,249,030  
SVI PCL, NVDR     1,650,800       122,417  
              2,771,748  
Entertainment — 0.4%                
Major Cineplex Group PCL, NVDR(b)     1,480,500       886,752  
RS PCL, NVDR(b)     919,600       305,999  
Workpoint Entertainment PCL, NVDR     517,100       142,569  
              1,335,320  
Food & Staples Retailing — 8.9%                
Berli Jucker PCL, NVDR(b)     2,820,700       3,262,733  
CP ALL PCL, NVDR     13,701,700       28,549,732  
              31,812,465  
Food Products — 3.7%                
Charoen Pokphand Foods PCL, NVDR     9,087,600       7,703,796  
GFPT PCL, NVDR(b)     1,177,300       399,211  
Khon Kaen Sugar Industry PCL, NVDR     3,731,478       250,697  
Taokaenoi Food & Marketing PCL, Class R, NVDR(b)  .     1,175,400       296,131  
Thai Union Group PCL, NVDR     7,828,100       3,795,593  
Thai Vegetable Oil PCL, NVDR     956,053       833,195  
              13,278,623  
Health Care Providers & Services — 6.4%                
Bangkok Chain Hospital PCL, NVDR       2,914,925       1,210,126  
Bangkok Dusit Medical Services PCL, NVDR     22,365,700       15,735,019  
Bumrungrad Hospital PCL, NVDR     1,026,176       4,178,850  
Chularat Hospital PCL, NVDR     10,401,400       824,069  
Thonburi Healthcare Group PCL, NVDR(b)     1,204,300       858,715  
              22,806,779  
Hotels, Restaurants & Leisure — 1.9%                
Central Plaza Hotel PCL, NVDR(b)        1,1 17,100       637,230  
Erawan Group PCL (The), NVDR(b)     3,226,800       366,089  
Minor International PCL, NVDR.     6,497,710       5,662,717  
              6,666,036  
Independent Power and Renewable Electricity Producers — 8.3%
B Grimm Power PCL, NVDR .     1,835,200       2,631,684  
BCPG PCL, NVDR(b)            1,417,900       651,547  
CK Power PCL, NVDR(b)     5,650,960       676,933  
Electricity Generating PCL, NVDR     679,500       5,878,736  
Energy Absolute PCL, NVDR(b)     3,935,400       4,863,907  
Global Power Synergy PCL, NVDR .     1,654,100       3,302,434  
Gulf Energy Development PCL, NVDR     1,251,500       6,563,881  
Ratch Group PCL, NVDR     1,701,300       3,181,008  
SPCG PCL, NVDR     1,151,500       638,607  
Super Energy Corp. PCL, NVDR(b)     32,078,850       396,474  
TPI Polene Power PCL, NVDR(b)     5,957,000       751,350  
              29,536,561  
Industrial Conglomerates — 0.1%                
Thoresen Thai Agencies PCL, NVDR     3,233,289       282,804  
                 
Insurance — 0.3%                
Bangkok Life Assurance PCL, NVDR(b)     1,211,200       594,949  
TQM Corp. PCL, NVDR     248,300       572,455  
              1,167,404  
Marine — 0.1%                
Precious Shipping PCL, NVDR(a)(b)     1,830,500       268,005  


S c h e d u l e   o f   I n v e s t m e n t s 35

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI Thailand ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
Media — 0.3%                
BEC World PCL, NVDR(a)     2,836,700     $ 393,749  
Plan B Media PCL, NVDR     4,589,300       741,734  
              1,135,483  
Metals & Mining — 0.1%                
STP & I PCL, NVDR(b)     2,304,900       343,306  
                 
Multiline Retail — 1.2%                
Central Retail Corp. PCL, NVDR(a)     4,222,234       4,214,875  
                 
Oil, Gas & Consumable Fuels — 15.6%                
Bangchak Corp. PCL, NVDR     2,416,900       1,838,238  
Banpu PCL, NVDR     10,295,800       2,316,596  
Esso Thailand PCL, NVDR(b)     2,456,200       467,032  
IRPC PCL, NVDR(b)     26,325,700       1,835,416  
Prima Marine PCL, NVDR(b)     1,819,500       274,467  
PTT Exploration & Production PCL, NVDR     3,260,584       10,953,000  
PTT PCL, NVDR     26,810,100       33,135,601  
Siamgas & Petrochemicals PCL, NVDR     1,725,500       431,990  
Star Petroleum Refining PCL,NVS(b)     4,100,200       1,026,512  
Thai Oil PCL, NVDR(b)     2,632,800       3,608,576  
              55,887,428  
Pharmaceuticals — 0.2%                
Mega Lifesciences PCL, NVDR(b)     824,700       653,383  
                 
Real Estate Management & Development — 7.6%
Amata Corp. PCL, NVDR     1,891,900       869,357  
Ananda Development PCL, NVDR(b)     3,223,700       157,328  
AP Thailand PCL, NVDR     5,577,786       1,078,260  
Bangkok Land PCL, NVDR(b)     24,478,900       799,026  
Central Pattana PCL, NVDR     5,263,000       8,839,772  
Land & Houses PCL, NVDR     19,592,900       5,215,667  
LPN Development PCL, NVDR(b)     3,139,847       417,916  
MBK PCL, NVDR     2,379,700       1,342,375  
Origin Property PCL, NVDR(b)     1,736,900       280,722  
Platinum Group PCL (The), NVDR(b)     1,972,300       186,261  
Pruksa Holding PCL, NVDR(b)     1,293,700       586,275  
Quality Houses PCL, NVDR     18,802,632       1,346,663  
Sansiri PCL, NVDR(b)     29,864,137       671,955  
SC Asset Corp. PCL, NVDR(b)     3,530,204       252,837  
Siam Future Development PCL, NVDR(b)     2,754,053       462,573  
Singha Estate PCL, NVDR     7,239,000       486,347  
Supalai PCL, NVDR     3,770,900       1,935,940  
U City PCL, NVDR(a)     8,169,541       318,445  
Univentures PCL, NVDR(b)     1,538,000       154,019  
WHA Corp. PCL, NVDR(b)     20,586,940       1,787,616  
              27,189,354  
Road & Rail — 1.6%                
BTS Group Holdings PCL, NVDR     16,459,400       5,685,548  
                 
Specialty Retail — 2.7%                
Beauty Community PCL, NVDR(b)     5,331,200       321,004  
Com7 PCL, NVDR     1,418,400       997,892  
Dohome PLC, NVDR(a)(b)     1,316,400       348,342  
Home Product Center PCL, NVDR     13,887,073       5,633,166  
PTG Energy PCL, NVDR     1,776,500       793,809  
Siam Global House PCL, NVDR(b)     3,438,743       1,503,871  
              9,598,084  
Security   Shares     Value  
             
Transportation Infrastructure — 6.9%                
Airports of Thailand PCL, NVDR(b)     10,054,400     $ 19,038,200  
Bangkok Aviation Fuel Services PCL, NVDR(b)     452,500       341,293  
Bangkok Expressway & Metro PCL, NVDR     17,933,653       5,257,052  
              24,636,545  
Water Utilities — 0.6%                
Eastern Water Resources Development and Management PCL, NVDR     1,367,100       463,571  
TTW PCL, NVDR     3,267,966       1,439,541  
WHA Utilities and Power PCL, NVDR(b)     2,712,900       381,723  
              2,284,835  
Wireless Telecommunication Services — 8.0%
Advanced Info Service PCL, NVDR     2,790,719       17,687,967  
Intouch Holdings PCL, NVDR     5,266,900       9,013,234  
Total Access Communication PCL, NVDR     1,666,700       1,927,890  
              28,629,091  
Total Common Stocks — 99.5%                
(Cost: $495,964,931)             355,280,247  
                 
Warrants                
                 
Media — 0.0%                
VGI PCL, (Expires 09/10/22)(a)        1       0 (c)
                 
Road & Rail — 0.0%                
BTS Group Holdings PCL, (Expires 02/16/21)(a)     1,888,970       51,482  
                 
Total Warrants — 0.0%                
(Cost: $0)             51 ,482  
                 
Short-Term Investments                
                 
Money Market Funds — 5.4%                
BlackRock Cash Funds: Institutional, SL Agency Shares, 1.74% (d)(e)(f)     19,006,163       19,019,468  
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52% (d)(e)     453,000       453,000  
              19,472,468  
Total Short-Term Investments — 5.4%                
(Cost: $19,465,528)             19,472,468  
                 
Total Investments in Securities — 104.9%                
(Cost: $515,430,459)             374,804,197  
                 
Other Assets, Less Liabilities — (4.9)%             (17,545,789 )
                 
Net Assets — 100.0%       $ 357,258,408  

 

(a) Non-income producing security.
(b) All or a portion of this security is on loan.
(c) Rounds to less than $1.
(d) Affiliate of the Fund.
(e) Annualized 7-day yield as of period-end.
(f) All or a portion of this security was purchased with cash collateral received from loaned securities.


36 2 0 2 0   i  S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

  

Schedule of Investments (unaudited) (continued) iShares® MSCI Thailand ETF
February 29, 2020  

 

Affiliates

 

Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

 

                                        Change in  
    Shares           Shares                       Unrealized  
    Held at           Held at     Value at           Net Realized     Appreciation  
Affiliated Issuer   08/31/19     Net Activity     02/29/20     02/29/20     Income     Gain (Loss) (a)   (Depreciation)  
BlackRock Cash Funds: Institutional, SL Agency Shares     14,300,710       4,705,453       19,006,163     $ 19,019,468     $ 514,537 (b)   $ (82 )   $ 4,356  
BlackRock Cash Funds: Treasury, SL Agency Shares     860,000       (407,000 )     453,000       453,000       8,199              
                            $ 19,472,468     $ 522,736     $ (82 )   $ 4,356  

 

(a) Includes realized capital gain distributions from an affiliated fund, if any.
(b) Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

 

Futures Contracts

 

                      Value/  
                Notional     Unrealized  
    Number of     Expiration     Amount     Appreciation  
Description     Contracts       Date       (000)     (Depreciation)  
Long Contracts                                
MSCI Emerging Markets E-Mini     23       03/20/20     $ 1,160     $ (87,286 )

 

Derivative Financial Instruments Categorized by Risk Exposure

 

As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

    Equity  
    Contracts  
Liabilities — Derivative Financial Instruments        
Futures contracts        
Unrealized depreciation on futures contracts(a)   $ 87,286  

 

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

 

For the six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

    Equity  
    Contracts  
Net Realized Gain (Loss) from:        
Futures contracts   $ 38,649  
         
Net Change in Unrealized Appreciation (Depreciation) on:        
Futures contracts   $ (87,286 )

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:      
Average notional value of contracts — long   $ 628,907  

 

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

 

Fair Value Measurements

 

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

 

S c h e d u l e   o f   I n v e s t m e n t s 37

 

 

 

  

Schedule of Investments (unaudited) (continued) iShares® MSCI Thailand ETF
February 29, 2020  

 

Fair Value Measurements (continued)

 

The following table summarizes the value of the Fund's investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund's investments into major categories is disclosed in the Schedule of Investments above.

 

    Level 1     Level 2     Level 3     Total  
Investments                        
Assets                        
Common Stocks   $ 355,280,247     $     $     $ 355,280,247  
Warrants     51,482                   51,482  
Money Market Funds     19,472,468                   19,472,468  
    $ 374,804,197     $     $     $ 374,804,197  
Derivative financial instruments(a)                                
Liabilities                                
Futures Contracts   $ (87,286 )   $     $     $ (87,286 )
                                 

(a) Shown at the unrealized appreciation (depreciation) on the contracts.

 

See notes to financial statements

 

38 2 0 2 0   i  S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

  

Statements of Assets and Liabilities (unaudited)

February 29, 2020

 

          iShares     iShares        
    iShares     MSCI Japan     MSCI     iShares  
    MSCI Hong Kong     Small-Cap     Malaysia     MSCI Pacific ex  
    ETF     ETF     ETF     Japan ETF  
                         
ASSETS                                
Investments in securities, at value (including securities on loan) (a):                                
Unaffiliated (b)   $ 1,880,104,383     $ 76,194,819     $ 347,085,236     $ 2,019,385,922  
Affiliated (c)     21,956,028       765,523       3,379,663       16,006,397  
Cash     735       298       44       400  
Foreign currency, at value(d)     3,922,607       152,787       105,793       2,894,968  
Foreign currency collateral pledged:                                
Futures contracts(e)     360,911       9,585             538,843  
Receivables:                                
Investments sold     4,082,566       29,517       12,195,970       3,669,454  
Securities lending income — Affiliated     7,580       2,921       2,774       11,433  
Variation margin on futures contracts     67,326                    
Dividends     138,120       305,373       294,645       7,081,428  
Total assets     1,910,640,256       77,460,823       363,064,125       2,049,588,845  
                                 
LIABILITIES                                
Collateral on securities loaned, at value     21,154,582       721,147       3,058,569       15,154,863  
Payables:                                
Investments purchased     1,300,501       97,348       4,162,469       3,520,701  
Variation margin on futures contracts       .           23,985             332,930  
Capital shares redeemed     6,697,660       95,498       7,762,245        
Investment advisory fees     794,237       36,331       164,468       840,826  
Total liabilities     29,946,980       974,309       15,147,751       19,849,320  
                                 
NET ASSETS   $ 1,880,693,276     $ 76,486,514     $ 347,916,374     $ 2,029,739,525  
                                 
NET ASSETS CONSIST OF:                                
Paid-in capital   $ 2,522,689,471     $ 122,969,926     $ 370,039,988     $ 2,693,642,797  
Accumulated loss     (641,996,195 )     (46,483,412 )     (22,123,614 )     (663,903,272 )
NET ASSETS   $ 1,880,693,276     $ 76,486,514     $ 347,916,374     $ 2,029,739,525  
                                 
Shares outstanding     82,350,000       1,200,000       13,650,000       48,300,000  
Net asset value   $ 22.84     $ 63.74     $ 25.49     $ 42.02  
Shares authorized  .     375 million       500 million       300 million       1 billion  
Par value   $ 0.001     $ 0.001     $ 0.001     $ 0.001  
                                 
(a) Securities loaned, at value         .   $ 20,109,458     $ 653,189     $ 2,897,563     $ 14,384,724  
(b) Investments, at cost — Unaffiliated   $ 2,052,621,197     $ 107,648,889     $ 254,190,935     $ 2,217,231,836  
(c) Investments, at cost — Affiliated        .   $ 21,953,582     $ 765,026     $ 3,377,812     $ 15,999,406  
(d) Foreign currency, at cost   $ 4,035,396     $ 149,769     $ 105,793     $ 2,911,924  
(e) Foreign currency collateral pledged, at cost   $ 257,819     $ 9,464     $     $ 551,576  

 

See notes to financial statements

 

F i n a n c i a l  s t a t e m e n t s 39

 

 

 

 

Statements of Assets and Liabilities (unaudited) (continued)

February 29, 2020

 

    iShares              
    MSCI           iShares  
    Singapore     iShares     MSCI  
    ETF     MSCI Taiwan ETF     Thailand ETF  
                   
ASSETS                        
Investments in securities, at value (including securities on loan) (a):                        
Unaffiliated (b)   $ 496,111,625     $ 3,456,824,123     $ 355,331,729  
Affiliated(c)     8,218,113       119,568,267       19,472,468  
Cash     308       326       892  
Foreign currency, at value(d)     1,342,242       904        
Cash pledged:                        
Futures contracts           29,000       61,000  
Foreign currency collateral pledged:                        
Futures contracts(e)     62,592              
Receivables:                        
Investments sold     4,574,800       28,240,519       2,653,710  
Securities lending income — Affiliated     14,192       176,412       103,487  
Dividends     239,444       194,244       1,343,784  
Total assets     510,563,316       3,605,033,795       378,967,070  
                         
LIABILITIES                        
Foreign bank overdraft                 21  
Collateral on securities loaned, at value     7,952,303       116,622,591       18,996,740  
Payables:                        
Investments purchased     4,003,344       25,767,075       2,491,137  
Variation margin on futures contracts     53,901       17,119       4,140  
Capital shares redeemed     1,278,919             25,919  
Investment advisory fees     212,522       1,631,766       190,705  
Foreign taxes           68,254        
Total liabilities     13,500,989       144,106,805       21,708,662  
                         
NETASSETS   $ 497,062,327     $ 3,460,926,990     $ 357,258,408  
                         
NET ASSETS CONSIST OF:                        
Paid-in capital   $ 740,527,473     $ 2,090,182,874     $ 564,262,670  
Accumulated earnings (loss)     (243,465,146 )     1,370,744,116       (207,004,262 )
NETASSETS   $ 497,062,327     $ 3,460,926,990     $ 357,258,408  
                         
Shares outstanding     23,000,000       90,500,000       5,100,000  
Net asset value   $ 21.61     $ 38.24     $ 70.05  
Shares authorized     300 million       900 million       200 million  
Par value   $ 0.001     $ 0.001     $ 0.001  
                         
(a) Securities loaned, at value   $ 7,527,802     $ 94,871,932     $ 17,223,004  
(b) Investments, at cost — Unaffiliated   $ 571,216,069     $ 1,757,862,596     $ 495,964,931  
(c) Investments, at cost — Affiliated   .   $ 8,213,549     $ 119,511,109     $ 19,465,528  
(d) Foreign currency, at cost   $ 1,351,562     $ 913     $ (21 )
(e) Foreign currency collateral pledged, at cost .   $ 64,043     $     $  

 

See notes to financial statements

  

40 2 0 2 0   i  S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

 

Statements of Operations (unaudited)

Six Months Ended February 29, 2020

 

          iShares     iShares     iShares  
    iShares     MSCI Japan     MSCI     MSCI Pacific  
    MSCI Hong     Small-Cap     Malaysia     ex Japan  
    Kong ETF     ETF     ETF     ETF  
                         
INVESTMENT INCOME                                
Dividends — Unaffiliated   $ 14,064,708     $ 1,098,496     $ 5,456,023     $ 35,280,080  
Dividends — Affiliated     21,625       616       3,198       10,054  
Interest — Unaffiliated     1,099                   67  
Securities lending income — Affiliated — net     20,898       32,431       52,067       64,858  
Foreign taxes withheld           (105,670 )           (612,444 )
Total investment income     14,108,330       1,025,873       5,511,288       34,742,615  
                                 
EXPENSES                                
Investment advisory fees     4,320,046       259,982       1,124,152       5,446,129  
Total expenses     4,320,046       259,982       1,124,152       5,446,129  
Net investment income     9,788,284       765,891       4,387,136       29,296,486  
                                 
REALIZED AND UNREALIZED GAIN (LOSS)                                
Net realized gain (loss) from:                                
Investments — Unaffiliated     (9,387,907 )     (486,418 )     (15,965,018 )     (19,772,794 )
Investments — Affiliated     (1,731 )     1,094       737       440  
In-kind redemptions — Unaffiliated     6,801,495       (5,363,487 )           25,444,328  
Futures contracts     432,703       80,076             673,083  
Foreign currency transactions     47,049       (13,208 )     (301,878 )     (70,881 )
Net realized gain (loss)     (2,108,391 )     (5,781,943 )     (16,266,159 )     6,274,176  
Net change in unrealized appreciation (depreciation) on:                                
Investments — Unaffiliated     (46,070,160 )     2,736,214       (22,584,511 )     (86,857,817 )
Investments — Affiliated     4,123       (951 )     772       1,739  
Futures contracts     (4,230 )     (28,554 )           (713,410 )
Foreign currency translations     (15,791 )     1,061       (26,907 )     (169,231 )
Net change in unrealized appreciation (depreciation)     (46,086,058 )     2,707,770       (22,610,646 )     (87,738,719 )
Net realized and unrealized loss     (48,194,449 )     (3,074,173 )     (38,876,805 )     (81,464,543 )
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS.   $ (38,406,165 )   $ (2,308,282 )   $ (34,489,669 )   $ (52,168,057 )

 

See notes to financial statements

  

F i n a n c i a l  s t a t e m e n t s 41

 

 

 

 

Statements of Operations (unaudited) (continued)

Six Months Ended February 29, 2020

                   
    iShares              
    MSCI     iShares     iShares  
    Singapore     MSCI Taiwan     MSCI  
    ETF     ETF     Thailand ETF  
                   
INVESTMENT INCOME                        
Dividends — Unaffiliated      .   $ 4,485,625     $ 14,388,357     $ 4,516,178  
Dividends — Affiliated     2,932       60,474       8,199  
Interest — Unaffiliated           5,159       75  
Securities lending income — Affiliated — net(a)     84,945       1,153,324       514,537  
Foreign taxes withheld     (124,951 )     (2,983,826 )     (372,196 )
Other foreign taxes           (31,983 )      
Total investment income     4,448,551       12,591,505       4,666,793  
                         
EXPENSES                        
Investment advisory fees     1,330,199       9,498,391       1,380,619  
Total expenses     1,330,199       9,498,391       1,380,619  
Net investment income     3,1 18,352       3,093,114       3,286,174  
                         
REALIZED AND UNREALIZED GAIN (LOSS)                        
Net realized gain (loss) from:                        
Investments — Unaffiliated     (9,942,463 )     (2,339,534 )     (10,658,984 )
Investments — Affiliated     430       591       (82 )
In-kind redemptions — Unaffiliated     2,014,487             5,883,837  
Futures contracts     144,400       1,386,420       38,649  
Foreign currency transactions     32,290       (18,107 )     (89,998 )
Net realized loss     (7,750,856 )     (970,630 )     (4,826,578 )
Net change in unrealized appreciation (depreciation) on:                        
Investments — Unaffiliated     (9,939,445 )     317,183,006       (107,801,978 )
Investments — Affiliated     (111 )     16,231       4,356  
Futures contracts     (1 13,534)       (319,277 )     (87,286 )
Foreign currency translations     (12,335 )     34,284       (15,061 )
Net change in unrealized appreciation (depreciation)     (10,065,425 )     316,914,244       (107,899,969 )
Net realized and unrealized gain (loss)     (17,816,281 )     315,943,614       (112,726,547 )
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS   $ (14,697,929 )   $ 319,036,728     $ (109,440,373 )
                         
(a) Net of securities lending income tax paid of   $     $ 292,726     $  

 

See notes to financial statements

  

42 2 0 2 0   i  S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

 

Statements of Changes in Net Assets

 

    iShares     iShares
      MSCI Hong Kong ETF     MSCI Japan Small-Cap ETF  
      Six Months Ended               Six Months Ended          
      02/29/20       Year Ended       02/29/20       Year Ended  
      (unaudited)       08/31/19       (unaudited)       08/31/19  
                                 
INCREASE (DECREASE) IN NET ASSETS                                
                                 
OPERATIONS                                
Net investment income         .   $ 9,788,284     $ 62,074,964     $ 765,891     $ 4,101,539  
Net realized gain (loss)     (2,108,391 )     171,568,216       (5,781,943 )     (35,779,750 )
Net change in unrealized appreciation (depreciation)     (46,086,058 )     (205,108,906 )     2,707,770       (2,339,583 )
Net increase (decrease) in net assets resulting from operations     (38,406,165 )     28,534,274       (2,308,282 )     (34,017,794 )
                                 
DISTRIBUTIONS TO SHAREHOLDERS(a)                                
Decrease in net assets resulting from distributions to shareholders     (14,933,383 )     (67,889,451 )     (3,185,539 )     (4,647,949 )
                                 
CAPITAL SHARE TRANSACTIONS                                
Net increase (decrease) in net assets derived from capital share transactions     509,370,258       (1,265,603,711 )     (28,014,920 )     (136,251,360 )
                                 
NET ASSETS                                
Total increase (decrease) in net assets     456,030,710       (1,304,958,888 )     (33,508,741 )     (174,917,103 )
Beginning of period     1,424,662,566       2,729,621,454       109,995,255       284,912,358  
End of period   $ 1,880,693,276     $ 1,424,662,566     $ 76,486,514     $ 109,995,255  

 

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

 

See notes to financial statements

 

F i n a n c i a l  S t a t e m e n t s 43

 

 

 

  

Statements of Changes in Net Assets (continued)

 

    iShares     iShares  
    MSCI Malaysia ETF     MSCI Pacific ex Japan ETF  
      Six Months Ended               Six Months Ended          
      02/29/20       Year Ended       02/29/20       Year Ended  
      (unaudited)       08/31/19       (unaudited)       08/31/19  
                                 
INCREASE (DECREASE) IN NET ASSETS                                
                                 
OPERATIONS                                
Net investment income         .   $ 4,387,136     $ 17,432,270     $ 29,296,486     $ 89,927,097  
Net realized gain (loss)     (16,266,159 )     (37,554,258 )     6,274,176       (10,840,856 )
Net change in unrealized appreciation (depreciation)     (22,610,646 )     (52,528,128 )     (87,738,719 )     (79,567,765 )
Net decrease in net assets resulting from operations     (34,489,669 )     (72,650,116 )     (52,168,057 )     (481,524 )
                                 
DISTRIBUTIONS TO SHAREHOLDERS(a)                                
Decrease in net assets resulting from distributions to shareholders     (5,324,752 )     (16,938,304 )     (47,058,472 )     (103,540,539 )
                                 
CAPITAL SHARE TRANSACTIONS                                
Net decrease in net assets derived from capital share transactions     (3,158,228 )     (76,742,616 )     (137,149,689 )     (4,695,754 )
                                 
NET ASSETS                                
Total decrease in net assets     (42,972,649 )     (166,331,036 )     (236,376,218 )     (108,717,817 )
Beginning of period     390,889,023       557,220,059       2,266,115,743       2,374,833,560  
End of period   $ 347,916,374     $ 390,889,023     $ 2,029,739,525     $ 2,266,115,743  

 

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

 

See notes to financial statements

 

44 2 0 2 0   i  S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

 

Statements of Changes in Net Assets (continued)

 

    iShares     iShares  
    MSCI Singapore ETF     MSCI Taiwan ETF  
      Six Months Ended               Six Months Ended          
      02/29/20       Year Ended       02/29/20       Year Ended  
      (unaudited)       08/31/19       (unaudited)       08/31/19  
                                 
INCREASE (DECREASE) IN NET ASSETS                                
                                 
OPERATIONS                                
Net investment income         .   $ 3,1 18,352     $ 21,402,424     $ 3,093,114     $ 89,438,292  
Net realized gain (loss)     (7,750,856 )     (4,573,908 )     (970,630 )     171,832,639  
Net change in unrealized appreciation (depreciation)     (10,065,425 )     (21,563,424 )     316,914,244       (507,317,120 )
Net increase (decrease) in net assets resulting from operations     (14,697,929 )     (4,734,908 )     319,036,728       (246,046,189 )
                                 
DISTRIBUTIONS TO SHAREHOLDERS(a)                                
Decrease in net assets resulting from distributions to shareholders     (14,978,438 )     (21,305,119 )     (89,350,677 )     (104,188,903 )
                                 
CAPITAL SHARE TRANSACTIONS                                
Net increase (decrease) in net assets derived from capital share transactions     13,087,891       (39,601,577 )     568,746,028       (1,070,161,394 )
                                 
NET ASSETS                                
Total increase (decrease) in net assets     (16,588,476 )     (65,641,604 )     798,432,079       (1,420,396,486 )
Beginning of period     513,650,803       579,292,407       2,662,494,911       4,082,891,397  
End of period   $ 497,062,327     $ 513,650,803     $ 3,460,926,990     $ 2,662,494,911  

 

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

 

See notes to financial statements

 

F i n a n c i a l  S t a t e m e n t s 45

 

 

 

 

Statements of Changes in Net Assets (continued)

 

             
    iShares  
    MSCI Thailand ETF  
      Six Months          
      Ended          
      02/29/20       Year Ended  
      (unaudited)       08/31/19  
                 
INCREASE (DECREASE) IN NET ASSETS                
                 
OPERATIONS                
Net investment income   $ 3,286,174     $ 11,152,769  
Net realized gain (loss)     (4,826,578 )     13,591,553  
Net change in unrealized appreciation (depreciation)     (107,899,969 )     (19,971,905 )
Net increase (decrease) in net assets resulting from operations     (109,440,373 )     4,772,417  
                 
DISTRIBUTIONS TO SHAREHOLDERS(a)                
Decrease in net assets resulting from distributions to shareholders     (4,102,360 )     (10,822,599 )
                 
CAPITAL SHARE TRANSACTIONS                
Net increase in net assets derived from capital share transactions     4,564,246       36,445,341  
                 
NET ASSETS                
Total increase (decrease) in net assets     (108,978,487 )     30,395,159  
Beginning of period     466,236,895       435,841,736  
End of period   $ 357,258,408     $ 466,236,895  

 

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

 

See notes to financial statements

 

46 2 0 2 0   i  S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

 

Financial Highlights

(For a share outstanding throughout each period)

 

    iShares MSCI Hong Kong ETF  
    Six Months Ended                                
    02/29/20     Year Ended     Year Ended     Year Ended     Year Ended     Year Ended  
    (unaudited)     08/31/19     08/31/18     08/31/17     08/31/16     08/31/15  
                                     
Net asset value, beginning of period   $ 23.00     $ 24.18     $ 24.69     $ 21.08     $ 19.42     $ 21.89  
Net investment income(a)               0.13       0.62       0.71       0.68       0.54       0.52  
Net realized and unrealized gain (loss)(b)            (0.08 )     (1.08 )     (0.12 )     3.54       1.72       (2.50 )
Net increase (decrease) from investment operations     0.05       (0.46 )     0.59       4.22       2.26       (1.98 )
                                                 
Distributions(c)                                                
From net investment income     (0.21 )     (0.72 )     (1.10 )     (0.61 )     (0.60 )     (0.49 )
Total distributions     (0.21 )     (0.72 )     (1.10 )     (0.61 )     (0.60 )     (0.49 )
                                                 
Net asset value, end of period     $ 22.84     $ 23.00     $ 24.18     $ 24.69     $ 21.08     $ 19.42  
                                                 
Total Return                                                
Based on net asset value     0.17 %(d)     (2.00 )%     2.33 %     20.38 %     11.94 %     (9.29 )%
                                                 
Ratios to Average Net Assets                                                
Total expenses     0.50 %(e)     0.49 %     0.48 %     0.49 %     0.48 %     0.48 %
Net investment income     1.13 %(e)     2.52 %     2.83 %     3.08 %     2.73 %     2.36 %
                                                 
Supplemental Data                                                
Net assets, end of period (000)   $ 1,880,693     $ 1,424,663     $ 2,729,621     $ 1,855,447     $ 1,596,576     $ 2,722,224  
Portfolio turnover rate(f)     3 %(d)     12 %     7 %     8 %     9 %     7 %

 

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

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

(d) Not annualized.
(e) Annualized.
(f) Portfolio turnover rate excludes in-kind transactions.

 

See notes to financial statements

 

F i n a n c i a l  H i g h l i g h t s 47

 

 

 

 

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

      iShares MSCI Japan Small-Cap ETF  
      Six Months Ended                                          
      02/29/20       Year Ended       Year Ended       Year Ended       Year Ended       Year Ended  
      (unaudited)       08/31/19       08/31/18       08/31/17       08/31/16       08/31/15  
                                                 
Net asset value, beginning of period   $ 68.75     $ 77.00     $ 72.78     $ 60.95     $ 56.79     $ 56.61  
Net investment income(a)     0.54       1.37       0.94       1.02       0.84       0.70  
Net realized and unrealized gain (loss)(b)             (3.43 )     (7.90 )     4.24       12.62       4.29       0.71  
Net increase (decrease) from investment operations     (2.89 )     (6.53 )     5.18       13.64       5.13       1.41  
                                                 
Distributions(c)                                                
From net investment income     (2.12 )     (1.72 )     (0.96 )     (1.81 )     (0.97 )     (1.23 )
Total distributions     (2.12 )     (1.72 )     (0.96 )     (1.81 )     (0.97 )     (1.23 )
                                                 
Net asset value, end of period   $ 63.74     $ 68.75     $ 77.00     $ 72.78     $ 60.95     $ 56.79  
                                                 
Total Return                                                
Based on net asset value     (4.64 )%(d)     (8.42 )%     7.09 %     22.81 %     9.10 %     2.63 %
                                                 
Ratios to Average Net Assets                                                
Total expenses     0.50 %(e)     0.49 %     0.47 %     0.49 %     0.48 %     0.48 %
Net investment income     1.47 %(e)     1.94 %     1.18 %     1.53 %     1.44 %     1.26 %
                                                 
Supplemental Data                                                
Net assets, end of period (000)   $ 76,487     $ 109,995     $ 284,912     $ 189,216     $ 164,553     $ 159,004  
Portfolio turnover rate(f)     3 %(d)     10 %     9 %     8 %     12 %     10 %

 

(a) Based on average shares outstanding.
(b) The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.
(c) Distributions for annual periods determined in accordance with U.S. federal income tax regulations.
(d) Not annualized.
(e) Annualized.
(f) Portfolio turnover rate excludes in-kind transactions.

 

See notes to financial statements

 

48 2 0 2 0   i  S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

  

 

 

 

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    iShares MSCI Malaysia ETF
    Six Months Ended                                
    02/29/20     Year Ended     Year Ended     Year Ended     Year Ended     Year Ended  
      (unaudited)       08/31/19       08/31/18       08/31/17(a)     08/31/16(a)     08/31/15(a)
                                                 
Net asset value, beginning of period   $ 28.02     $ 32.87     $ 32.03     $ 33.13     $ 40.75     $ 64.53  
Net investment income(b)                0.27       1.03       0.91       0.56       1.00       1.44  
Net realized and unrealized gain (loss)(c)             (2.49 )     (4.85 )     2.06       (0.05 )     2.79       (23.47 )
Net increase (decrease) from investment operations     (2.22 )     (3.82 )     2.97       0.51       3.79       (22.03 )
                                                 
Distributions(d)                                                
From net investment income     (0.31 )     (1.03 )     (2.13 )     (1.61 )     (1.81 )     (1.57 )
From net realized gain      —                         (9.60 )     (0.18 )
Total distributions     (0.31 )     (1.03 )     (2.13 )     (1.61 )     (11.41 )     (1.75 )
                                                 
Net asset value, end of period   $ 25.49     $ 28.02     $ 32.87     $ 32.03     $ 33.13     $ 40.75  
                                                 
Total Return                                                
Based on net asset value     (8.00 )%(e)     (11.69 )%     9.59 %     2.14 %     12.58 %     (34.62 )%
                                                 
Ratios to Average Net Assets                                                
Total expenses     0.50 %(f)     0.49 %     0.47 %     0.49 %     0.48 %     0.48 %
Net investment income     1.95 %(f)     3.41 %     2.69 %     2.73 %     2.86 %     2.61 %
                                                 
Supplemental Data                                                
Net assets, end of period (000)   $ 347,916     $ 390,889     $ 557,220     $ 437,224     $ 335,455     $ 263,579  
Portfolio turnover rate(g)     33 %(e)(h)     48 %(h)     63 %(h)     24 %(h)     72 %(h)     24 %(h)

 

(a) Per share amounts reflect a one-for-four reverse stock split effective after the close of trading on November 4, 2016.
(b) Based on average shares outstanding.
(c) The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.
(d) Distributions for annual periods determined in accordance with U.S. federal income tax regulations.
(e) Not annualized.
(f) Annualized.
(g) Portfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash in U.S. dollars ("cash creations").
(h) Portfolio turnover rate excluding cash creations was as follows:   7 % 9 % 17 % 10 % 17 % 5 %

 

See notes to financial statements

 

F i n a n c i a l  H i g h l i g h t s 49

 

 

 

 

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

                                     
    iShares MSCI Pacific ex Japan ETF  
      Six Months Ended                                
    02/29/20     Year Ended     Year Ended     Year Ended     Year Ended     Year Ended  
    (unaudited)     08/31/19     08/31/18     08/31/17     08/31/16     08/31/15  
                                     
Net asset value, beginning of period   $ 44.17     $ 46.02     $ 46.43     $ 40.94     $ 38.01     $ 51.21  
Net investment income(a)     0.59       1.74       1.66       1.60       1.54       1.97  
Net realized and unrealized gain (loss)(b)            (1.78 )     (1.58 )     0.03       5.55       2.98       (13.09 )
Net increase (decrease) from investment operations     (1.19 )     0.16       1.69       7.15       4.52       (11.12 )
                                                 
Distributions(c)                                                
From net investment income     (0.96 )     (2.01 )     (2.10 )     (1.66 )     (1.59 )     (2.08 )
Total distributions     (0.96 )     (2.01 )     (2.10 )     (1.66 )     (1.59 )     (2.08 )
                                                 
Net asset value, end of period   $ 42.02     $ 44.17     $ 46.02     $ 46.43     $ 40.94     $ 38.01  
                                                 
Total Return                                                
Based on net asset value     (2.90 )%(d)     0.56 %     3.63 %     18.06 %     12.20 %     (22.19 )%
                                                 
Ratios to Average Net Assets                                                
Total expenses     0.48 %(e)     0.48 %     0.48 %     0.49 %     0.49 %     0.49 %
Net investment income     2.59 %(e)     3.89 %     3.52 %     3.69 %     4.00 %     4.31 %
                                                 
Supplemental Data                                                
Net assets, end of period (000)   $ 2,029,740     $ 2,266,116     $ 2,374,834     $ 3,120,426     $ 2,357,962     $ 1,984,205  
Portfolio turnover rate(f)     3 %(d)     7 %     6 %     3 %     6 %     7 %

 

(a) Based on average shares outstanding.
(b) The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.
(c) Distributions for annual periods determined in accordance with U.S. federal income tax regulations.
(d) Not annualized.
(e) Annualized.
(f) Portfolio turnover rate excludes in-kind transactions.

 

See notes to financial statements

 

50 2 0 2 0   i  S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

 

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

                                     
    iShares MSCI Singapore ETF  
    Six Months Ended                                
    02/29/20     Year Ended     Year Ended     Year Ended     Year Ended     Year Ended  
      (unaudited)       08/31/19       08/31/18       08/31/17 (a)     08/31/16 (a)     08/31/15 (a)
                                                 
Net asset value, beginning of period   $ 22.83     $ 23.84     $ 24.70     $ 21.22     $ 21.25     $ 27.93  
Net investment income(b)     0.14       0.91       1.04       0.56       0.84       0.82  
Net realized and unrealized gain (loss)(c)             (0.68 )     (1.02 )     (0.77 )     3.84       (0.24 )     (6.64 )
Net increase (decrease) from investment operations     (0.54 )     (0.11 )     0.27       4.40       0.60       (5.82 )
                                                 
Distributions(d)                                                
From net investment income     (0.68 )     (0.90 )     (1.13 )     (0.92 )     (0.63 )     (0.86 )
Total distributions     (0.68 )     (0.90 )     (1.13 )     (0.92 )     (0.63 )     (0.86 )
                                                 
Net asset value, end of period   $ 21.61     $ 22.83     $ 23.84     $ 24.70     $ 21.22     $ 21.25  
                                                 
Total Return                                                
Based on net asset value     (2.63 )%(e)     (0.41 )%     0.91 %     21.51 %     2.87 %     (21.27 )%
                                                 
Ratios to Average Net Assets                                                
Total expenses     0.50 %(f)     0.50 %     0.47 %     0.49 %     0.48 %     0.48 %
Net investment income     1.17 %(f)     3.86 %     4.03 %     3.00 %     3.96 %     3.15 %
                                                 
Supplemental Data                                                
Net assets, end of period (000)   $ 497,062     $ 513,651     $ 579,292     $ 600,268     $ 562,418     $ 609,927  
Portfolio turnover rate(g)     4 %(e)     9 %     26 %     12 %     7 %     10 %

 

(a) Per share amounts reflect a one-for-two reverse stock split effective after the close of trading on November 4, 2016.
(b) Based on average shares outstanding.
(c) The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.
(d) Distributions for annual periods determined in accordance with U.S. federal income tax regulations.
(e) Not annualized.
(f) Annualized.
(g) Portfolio turnover rate excludes in-kind transactions.

 

See notes to financial statements

 

F i n a n c i a l  H i g h l i g h t s 51

 

 

 

 

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    iShares MSCI Taiwan ETF  
  Six Months Ended                                
    02/29/20     Year Ended     Year Ended     Year Ended     Year Ended     Year Ended  
      (unaudited)       08/31/19       08/31/18       08/31/17 (a)     08/31/16 (a)     08/31/15 (a)
                                                 
Net asset value, beginning of period   $ 34.94     $ 37.91     $ 37.35     $ 30.30     $ 27.17     $ 32.89  
Net investment income(b)     0.04       0.92       0.98       0.87       0.68       0.74  
Net realized and unrealized gain (loss)(c)     4.28       (2.89 )     0.60       6.88       3.25       (5.88 )
Net increase (decrease) from investment operations     4.32       (1.97 )     1.58       7.75       3.93       (5.14 )
                                                 
Distributions(d)                                                
From net investment income     (1.02 )     (1.00 )     (1.02 )     (0.70 )     (0.80 )     (0.58 )
Total distributions     (1.02 )     (1.00 )     (1.02 )     (0.70 )     (0.80 )     (0.58 )
                                                 
Net asset value, end of period   $ 38.24     $ 34.94     $ 37.91     $ 37.35     $ 30.30     $ 27.17  
                                                 
Total Return                                                
Based on net asset value     12.21 %(e)     (4.92 )%     4.43 %     26.17 %     15.02 %     (15.79 )%
                                                 
Ratios to Average Net Assets                                                
Total expenses     0.58 %(f)     0.59 %     0.59 %     0.62 %     0.64 %     0.62 %
Net investment income     0.19 %(f)     2.70 %     2.65 %     3.10 %     2.51 %     2.36 %
                                                 
Supplemental Data                                                
Net assets, end of period (000)   $ 3,460,927     $ 2,662,495     $ 4,082,891     $ 3,764,790     $ 2,656,889     $ 3,276,410  
Portfolio turnover rate(g)     6 %(e)(h)     7 %(h)     12 %(h)     11 %(h)     27 %(h)     14 %(h)

 

(a) Per share amounts reflect a one-for-two reverse stock split effective after the close of trading on November 4, 2016.
(b) Based on average shares outstanding.
(c) The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.
(d) Distributions for annual periods determined in accordance with U.S. federal income tax regulations.
(e) Not annualized.
(f) Annualized.
(g) Portfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash in U.S. dollars ("cash creations").
(h) Portfolio turnover rate excluding cash creations was as follows:   6 % 6 % 11 % 8 % 9 % 4 %

 

See notes to financial statements

 

52 2 0 2 0   i  S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

 

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    iShares MSCI Thailand ETF  
      Six Months Ended                                          
      02/29/20       Year Ended       Year Ended       Year Ended       Year Ended       Year Ended  
      (unaudited)       08/31/19       08/31/18       08/31/17       08/31/16       08/31/15  
                                                 
Net asset value, beginning of period   $ 90.53     $ 90.80     $ 82.70     $ 75.94     $ 65.01     $ 83.41  
Net investment income(a)     0.59       2.10       2.12       1.99       2.05       1.66  
Net realized and unrealized gain (loss)(b)             (20.39 )     (0.33 )     8.13       6.90       10.54       (17.98 )
Net increase (decrease) from investment operations     (19.80 )     1.77       10.25       8.89       12.59       (16.32 )
                                                 
Distributions(c)                                                
From net investment income     (0.68 )     (2.04 )     (2.15 )     (2.13 )     (1.66 )     (2.08 )
Total distributions     (0.68 )     (2.04 )     (2.15 )     (2.13 )     (1.66 )     (2.08 )
                                                 
Net asset value, end of period   $ 70.05     $ 90.53     $ 90.80     $ 82.70     $ 75.94     $ 65.01  
                                                 
Total Return                                                
Based on net asset value     (22.00 )%(d)     2.03 %     12.55 %     12.01 %     19.87 %     (19.92 )%
                                                 
Ratios to Average Net Assets                                                
Total expenses     0.58 %(e)     0.59 %     0.59 %     0.62 %     0.63 %     0.62 %
Net investment income     1.38 %(e)     2.36 %     2.30 %     2.63 %     3.08 %     2.09 %
                                                 
Supplemental Data                                                
Net assets, end of period (000)   $ 357,258     $ 466,237     $ 435,842     $ 355,590     $ 448,075     $ 237,304  
Portfolio turnover rate(f)     6 %(d)     17 %     10 %     7 %     16 %     13 %

 

(a) Based on average shares outstanding.
(b) The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.
(c) Distributions for annual periods determined in accordance with U.S. federal income tax regulations.
(d) Not annualized.
(e) Annualized.
(f) Portfolio turnover rate excludes in-kind transactions.

 

See notes to financial statements

 

F i n a n c i a l  H i g h l i g h t s 53

  

 

 

 

Notes to Financial Statements (unaudited)

 

1. ORGANIZATION

 

iShares, Inc. (the “Company”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company.

 

The Company is organized as a Maryland corporation and is authorized to have multiple series or portfolios.

 

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

 

  Diversification
iShares ETF Classification
MSCI Hong Kong Non-diversified
MSCI Japan Small-Cap Diversified
MSCI Malaysia Non-diversified
MSCI Pacific ex Japan Diversified
MSCI Singapore Non-diversified
MSCI Taiwan Non-diversified
MSCI Thailand Non-diversified

 

2. SIGNIFICANT ACCOUNTING POLICIES

 

The following significant accounting policies are consistently followed by each Fund in the preparation of its financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies.

 

Investment Transactions and Income Recognition: Investment transactions are accounted for on trade date. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recognized on the ex-dividend date, net of any foreign taxes withheld at source. Any taxes withheld that are reclaimable from foreign tax authorities are reflected in tax reclaims receivable. Distributions received by the Funds may include a return of capital that is estimated by management. Such amounts are recorded as a reduction of the cost of investments or reclassified to capital gains. Upon notification from issuers, some of the dividend income received from a real estate investment trust may be re-designated as a return of capital or capital gain. Non-cash dividends, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Interest income is accrued daily.

 

Foreign Currency Translation: The accounting records of the Funds are maintained in U.S. dollars. Foreign currencies, as well as investment securities and other assets and liabilities denominated in non-U.S. currencies are translated to U.S. dollars using prevailing market rates as quoted by one or more data service providers. Purchases and sales of investments, income receipts and expense payments are translated into U.S. dollars on the respective dates of such transactions.

 

Each Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of investments. Such fluctuations are reflected by the Funds as a component of net realized and unrealized gain (loss) from investments for financial reporting purposes. Each Fund reports realized currency gain (loss) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for U.S. federal income tax purposes.

 

Foreign Taxes: The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which each Fund invests. These foreign taxes, if any, are paid by each Fund and are reflected in its statement of operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of February 29, 2020, if any, are disclosed in the statement of assets and liabilities.

 

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

 

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

 

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

 

54 2 0 2 0   i  S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

 

Notes to Financial Statements (unaudited) (continued)

 

3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

 

Investment Valuation Policies: Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date should the reporting period end on a day that the Fund’s listing exchange is not open. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. A fund determines the fair value of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Directors of the Company (the “Board”). The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.

 

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

Equity investments traded on a recognized securities exchange are valued at that day’s last traded price or official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price.
  Investments in open-end U.S. mutual funds (including money market funds) are valued at that day’s published net asset value (“NAV”).
Futures contract notional values are determined based on that day’s last reported settlement price on the exchange where the contract is traded.

 

If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of an investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with policies approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee include market approach, income approach and the cost approach. Valuation techniques used under these approaches take into consideration inputs that include but are not limited to (i) attributes specific to the investment; (ii) the principal market for the investment; (iii) the customary participants in the principal market for the investment; (iv) data assumptions by market participants for the investment, if reasonably available; (v) quoted prices for similar investments in active markets; and (vi) other inputs, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or default rates.

 

When determining the price for Fair Valued Investments, the Global Valuation Committee, or its delegate, seeks to determine the price that each Fund m ight 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.

 

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

 

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

Level 1 – Unadjusted price quotations in active markets for identical assets or liabilities;
Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; and
Level 3 – Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, (including the Global Valuation Committee’s assumptions used in determining the fair value of financial instruments).

 

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) an d the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgement exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The fair value hierarchy for each Fund’s investments is included in its schedule of investments. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

 

4. SECURITIES AND OTHER INVESTMENTS

 

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

 

As of February 29, 2020, any securities on loan were collateralized by cash and/or U.S. government obligations. Cash collateral received was invested in money market funds managed by BlackRock Fund Advisors (“BFA”), the Funds' investment adviser, or its affiliates and is disclosed in the schedules of investments. Any non-cash collateral

 

N o t e s  t o   F i n a n c i a l  S t a t e m e n t s 55

 

 

 

 

Notes to Financial Statements (unaudited) (continued)

 

received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan for each Fund, if any, are also disclosed in its schedule of investments. The market value of any securities on loan as of February 29, 2020 and the value of the related cash collateral are disclosed in the statements of assets and liabilities.

 

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

 

The following table is a summary of the securities lending agreements by counterparty which are subject to offset under an MSLA as of February 29, 2020:

 

    Market Value of     Cash Collateral     Non-Cash Collateral        
iShares ETF and Counterparty   Securities on Loan     Received (a)   Received     Net Amount  
MSCI Hong Kong                                
BofA Securities, Inc.   $ 510,334     $ 510,334     $     $  
Citigroup Global Markets Inc.     7,173,058       7,173,058              
Morgan Stanley & Co. LLC.     12,426,066       12,426,066              
    $ 20,109,458     $ 20,109,458     $     $  
MSCI Japan Small-Cap                                
Credit Suisse Securities (USA) LLC.   $ 43,207     $ 43,207     $     $  
Goldman Sachs & Co.     312,174       312,174              
HSBC Bank PLC     95,272       95,272              
JPMorgan Securities LLC.     86,265       86,265              
Macquarie Bank Limited     100,145       100,145              
UBS AG     16,126       16,126              
    $ 653,189     $ 653,189     $     $  
MSCI Malaysia                                
Macquarie Bank Limited.   $ 99,037     $ 99,037     $     $  
Morgan Stanley & Co. International PLC     2,798,526       2,798,526              
    $ 2,897,563     $ 2,897,563     $     $  
MSCI Pacific ex Japan                                
BofA Securities, Inc.   $ 3,216,399     $ 3,216,399     $     $  
Goldman Sachs & Co.     3,442,200       3,442,200              
Morgan Stanley & Co. LLC.     7,701,291       7,701,291              
State Street Bank & Trust Company     24,834       24,834              
    $ 14,384,724     $ 14,384,724     $     $  
MSCI Singapore                                
Goldman Sachs & Co.   $ 5,371,752     $ 5,371,752     $     $  
JPMorgan Securities LLC.     583,936       583,936              
Morgan Stanley & Co. LLC.     1,572,114       1,572,114              
    $ 7,527,802     $ 7,527,802     $     $  
MSCI Taiwan                                
Citigroup Global Markets Ltd.   $ 24,754,328     $ 24,754,328     $     $  
Credit Suisse Securities (Europe) Ltd.     14,243,248       14,243,248              
JPMorgan Securities PLC     13,470,169       13,470,169              
Macquarie Bank Limited     23,441,053       23,441,053              
Morgan Stanley & Co. International PLC     18,963,134       18,963,134              
    $ 94,871,932     $ 94,871,932     $     $  

  

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Notes to Financial Statements (unaudited) (continued)

 

    Market Value of     Cash Collateral     Non-Cash Collateral        
iShares ETF and Counterparty   Securities on Loan     Received(a)     Received     Net Amount  
MSCI Thailand                                
Barclays Capital Inc.   $ 509,760     $ 509,760     $     $  
Credit Suisse Securities (USA) LLC     1,383,242       1,383,242              
Goldman Sachs & Co.     2,441,944       2,441,944              
JPMorgan Securities LLC     2,083,219       2,083,219              
Macquarie Bank Limited     231,342       231,342              
Morgan Stanley & Co. LLC     9,285,137       9,285,137              
Scotia Capital (USA) Inc.     48,730       48,730              
SG Americas Securities LLC     910,406       910,406              
UBS AG     329,224       329,224              
    $ 17,223,004     $ 17,223,004     $     $  

  

(a) Collateral received in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by each Fund is disclosed in the Fund's statement of assets and liabilities.

 

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

 

5. DERIVATIVE FINANCIAL INSTRUMENTS

 

Futures Contracts: Each Fund’s use of futures contracts is generally limited to cash equitization. This involves the use of available cash to invest in index futures contracts in order to gain exposure to the equity markets represented in or by the Fund’s underlying index and is intended to allow the Fund to better track its underlying index. Futures contracts are standardized, exchange-traded agreements to buy or sell a specific quantity of an underlying instrument at a set price on a future date. Depending on the terms of a contract, a futures contract is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cas h amount on the settlement date.

 

Upon entering into a futures contract, a fund is required to pledge to the executing broker which holds segregated from its own assets, an amount of cash, U.S. government securities or other high-quality debt and equity securities equal to the minimum initial margin requirements of the exchange on which the contract is traded. Securities deposited as initial margin, if any, are designated in the schedule of investments and cash deposited, if any, is shown as cash pledged for futures contracts in the statement of assets and liabilities.

 

Pursuant to the contract, a fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation or depreciation and, if any, shown as variation margin receivable or payable on futures contracts in the statement of assets and liabilities. When the contract is closed, a realized gain or loss is recorded in the statement of operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. Losses may arise if the notional value of a futures contract decreases due to an unfavorable change in the market rates or values of the underlying instrument during the term of the contract or if the counterparty does not perform under the contract. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and the assets u nderlying such contracts.

 

6. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

 

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

 

For its investment advisory services to each of the iShares MSCI Hong Kong, iShares MSCI Japan Small-Cap, iShares MSCI Malaysia and iShares MSCI Singapore ETFs, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Funds, based on each Fund’s allocable portion of the aggregate of the average daily net assets of the Fund and certain other iShares funds, as follows:

 

Aggregate Average Daily Net Assets   Investment Advisory Fee  
First $7 billion     0.59 %
Over $7 billion, up to and including $11 billion     0.54  
Over $11 billion, up to and including $24 billion     0.49  
Over $24 billion, up to and including $48 billion     0.44  
Over $48 billion, up to and including $72 billion     0.40  
Over $72 billion, up to and including $96 billion     0.36  
Over $96 billion     0.32  

 

N o t e s  T o  F i n a n c i a l  S t a t e m e n t s 57

 

 

 

 

Notes to Financial Statements (unaudited) (continued)

 

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

 

Aggregate Average Daily Net Assets   Investment Advisory Fee  
First $46 billion     0.5000 %
Over $46 billion, up to and including $81 billion     0.4750  
Over $81 billion, up to and including $111 billion     0.4513  
Over $111 billion, up to and including $141 billion     0.4287  
Over $141 billion     0.4073  

 

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

 

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

 

Aggregate Average Daily Net Assets   Investment Advisory Fee  
First $2 billion     0.74 %
Over $2 billion, up to and including $4 billion     0.69  
Over $4 billion, up to and including $8 billion     0.64  
Over $8 billion, up to and including $16 billion     0.57  
Over $16 billion, up to and including $24 billion     0.51  
Over $24 billion, up to and including $32 billion     0.48  
Over $32 billion     0.45  

 

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

 

Securities Lending: The U.S. Securities and Exchange Commission (the “SEC”) has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan in a money market fund managed by BFA, or its affiliates, however, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees each Fund bears to an annual rate of 0.04% (the “collateral investment fees”). Securities lending income is equal to the total of income earned from the reinvestment of cash collateral (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. Each Fund retains a portion of securities lending income and remits the remaining portion to BTC as compensation for its services as securities lending agent.

 

Pursuant to the current securities lending agreement, each Fund retains 82% of securities lending income (which excludes collateral investment fees) and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

 

In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across all 1940 Act iShares exchange-traded funds (the “iShares ETF Complex”) in that calendar year exceeds a specified threshold, each Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year 85% of securities lending income (which excludes collateral investment fees), and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

 

The share of securities lending income earned by each Fund is shown as securities lending income – affiliated – net in its statement of operations. For the six months ended February 29, 2020, the Funds paid BTC the following amounts for securities lending agent services:

  

    Fees Paid  
iShares ETF   to BTC  
MSCI Hong Kong   $ 5,756  
MSCI Japan Small-Cap     7,424  
MSCI Malaysia     12,322  
MSCI Pacific ex Japan     18,150  
MSCI Singapore     22,000  
MSCI Taiwan     343,378  
MSCI Thailand     115,925  

 

Officers and Directors: Certain officers and/or directors of the Company are officers and/or directors of BlackRock or its affiliates.

 

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Notes to Financial Statements (unaudited) (continued)

 

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

 

For the six months ended February 29, 2020, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:

 

                Net Realized  
iShares ETF   Purchases     Sales     Gain (Loss)  
MSCI Hong Kong   $ 13,896,548     $ 6,092,693     $ (13,653,367 )
MSCI Japan Small-Cap     360,348       2,225,918       313,700  
MSCI Pacific ex Japan     2,957,462       8,122,218       (7,407,228 )
MSCI Singapore     9,775,375       3,040,462       (2,672,782 )

 

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

 

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

 

7. PURCHASES AND SALES

 

For the six months ended February 29, 2020, purchases and sales of investments, excluding in-kind transactions and short-term investments, were as follows:

 

iShares ETF   Purchases     Sales  
MSCI Hong Kong   $ 595,080,070     $ 57,736,593  
MSCI Japan Small-Cap     3,368,108       5,863,164  
MSCI Malaysia     145,190,300       147,749,940  
MSCI Pacific ex Japan     65,817,287       81,999,687  
MSCI Singapore     25,931,979       21,768,804  
MSCI Taiwan     695,346,523       188,872,904  
MSCI Thailand     29,141,475       29,541,583  

 

For the six months ended February 29, 2020, in-kind transactions were as follows:

 

    In-kind     In-kind  
iShares ETF   Purchases     Sales  
MSCI Hong Kong   $ 40,890,099     $ 66,783,372  
MSCI Japan Small-Cap     14,751,309       42,386,688  
MSCI Pacific ex Japan           130,175,971  
MSCI Singapore     19,446,491       19,282,677  
MSCI Thailand     171,461,773       166,961,071  

 

8. INCOME TAX INFORMATION

 

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

 

Management has analyzed tax laws and regulations and their application to the Funds as of February 29, 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.

 

As of August 31, 2019, the Funds had non-expiring capital loss carryforwards available to offset future realized capital gains as follows:

 

iShares ETF   Non-Expiring  
MSCI Hong Kong   $ 420,080,374  
MSCI Japan Small-Cap     6,835,514  
MSCI Malaysia     54,1 08,940  
MSCI Pacific ex Japan     386,018,900  
MSCI Singapore     1 32,911,937  
MSCI Taiwan     146,686,322  
MSCI Thailand     51,274,844  

 

N o t e s  to  F i n a n c i a l  S t a t e m e n t s 59

  

 

 

 

Notes to Financial Statements (unaudited) (continued)

 

A fund may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” Such fund may elect to mark-to-market annually the shares of each passive foreign investment company and would be required to distribute to shareholders any such marked-to-market gains.

 

As of February 29, 2020, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:

 

                      Net Unrealized  
          Gross Unrealized     Gross Unrealized     Appreciation  
iShares ETF   Tax Cost     Appreciation     Depreciation     (Depreciation)  
MSCI Hong Kong   $ 2,099,089,370     $ 86,911,474     $ (283,944,212 )   $ (197,032,738 )
MSCI Japan Small-Cap     1 10,283,485       2,155,643       (35,520,234 )     (33,364,591 )
MSCI Malaysia     302,402,032       98,789,515       (50,726,648 )     48,062,867  
MSCI Pacific ex Japan     2,311,644,770       260,965,284       (537,819,669 )     (276,854,385 )
MSCI Singapore     597,690,247       12,739,027       (106,149,973 )     (93,410,946 )
MSCI Taiwan     2,053,333,941       1,729,535,934       (206,520,014 )     1,523,015,920  
MSCI Thailand     527,010,882       2,357,192       (154,651,163 )     (152,293,971 )

 

9. PRINCIPAL RISKS

 

In the normal course of business, each Fund invests in securities or other instruments and may enter into certain transactions, and such activities su bject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. Each Fund’s prospectus provides details of the risks to which the Fund is subject.

 

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

 

Market Risk: Market risk arises mainly from uncertainty about future values of financial instruments influenced by price, currency and interest rate movements. It represents the potential loss a fund may suffer through holding market positions in the face of market movements. A fund is exposed to market risk by its investment in equity, fixed income and/or financial derivative instruments or by its investment in underlying funds. The fair value of securities held by a fund may decline due to general market conditions, economic trends or events that are not specifically related to the issuers of the securities including local, regional or global political, social or economic instability or to factors that affect a particular industry or group of industries. 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. The extent of a fund’s exposure to market risk is the market value of the investments held as shown in the fund’s schedule of investments.

 

Investing in the securities of non-U.S. issuers involves certain considerations and risks not typically associated with securities of U.S. issuers . Such risks include, but are not limited to: differences in accounting, auditing and financial reporting standards; more substantial governmental involvement in the economy; higher inflation rates, greater social, economic and political uncertainties; possible nationalization or expropriation of assets; less availability of public information about issuers; imposition of withholding or other taxes; higher transaction and custody costs and delays in settlement procedures; and lower level of regulation of the securities markets and issuers. Non-U.S. securities may be less liquid, more difficult to value, and have greater price volatility due to exchange rate fluctuations. These and other risks are heightened for investments in issuers from countries with less developed capital markets.

 

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 impact of the pandemic may be short term or may last for an extended period of time.

 

Credit Risk: Credit risk is the risk that an issuer or guarantor of debt instruments or the counterparty to a financial transaction, including derivatives contracts, repurchase agreements or loans of portfolio securities, is unable or unwilling to make timely interest and/or principal payments or to otherwise honor its obligations. BFA and its affiliates manage counterparty credit risk by entering into transactions only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose a fund to issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of a fund’s exposure to credit and counterparty risks with respect to those financial assets is approximated by their value recorded in its statement of assets and liabilities.

 

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

 

When a fund concentrates its investments in issuers located in a single country or a limited number of countries, it assumes the risk that economic, regulatory, political and social conditions in that country or those countries may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio.

 

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Notes to Financial Statements (unaudited) (continued)

 

When a fund concentrates its investments in securities within a single or limited number of market sectors, it assumes the risk that economic, regulatory, political and social conditions affecting such sectors may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio.

 

10. CAPITAL SHARE TRANSACTIONS

 

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

 

Transactions in capital shares were as follows:

 

    Six Months Ended     Year Ended  
    02/29/20     08/31/19  
iShares ETF     Shares       Amount       Shares       Amount  
MSCI Hong Kong                                
Shares sold     23,700,000     $ 584,919,221       26,400,000     $ 641,855,226  
Shares redeemed     (3,300,000 )     (75,548,963 )     (77,325,000 )     (1,907,458,937 )
Net increase(decrease)     20,400,000     $ 509,370,258       (50,925,000 )   $ (1,265,603,711 )
                                 
MSCI Japan Small-Cap                                
Shares sold     200,000     $ 14,987,192       2,600,000     $ 188,325,229  
Shares redeemed     (600,000 )     (43,002,112 )     (4,700,000 )     (324,576,589 )
Net decrease     (400,000 )   $ (28,014,920 )     (2,100,000 )   $ (136,251,360 )
                                 
MSCI Malaysia                                
Shares sold     4,275,000     $ 120,064,883       6,825,000     $ 211,840,133  
Shares redeemed     (4,575,000 )     (123,223,111 )     (9,825,000 )     (288,582,749 )
Net decrease     (300,000 )   $ (3,158,228 )     (3,000,000 )   $ (76,742,616 )
                                 
MSCI Pacific ex Japan                                
Shares sold         $       6,000,000     $ 271,812,469  
Shares redeemed     (3,000,000 )     (137,149,689 )     (6,300,000 )     (276,508,223 )
Net decrease     (3,000,000 )   $ (137,149,689 )     (300,000 )   $ (4,695,754 )
                                 
MSCI Singapore                                
Shares sold     1,550,000     $ 37,044,705       4,000,000     $ 93,905,772  
Shares redeemed     (1,050,000 )     (23,956,814 )     (5,800,000 )     (133,507,349 )
Net increase(decrease)     500,000     $ 13,087,891       (1,800,000 )   $ (39,601,577 )
                                 
MSCI Taiwan                                
Shares sold     14,300,000     $ 568,746,028       100,000     $ 13,078,670  
Shares redeemed                 (31,600,000 )     (1,083,240,064 )
Net increase(decrease)     14,300,000     $ 568,746,028       (31,500,000 )   $ (1,070,161,394 )
                                 
MSCI Thailand                                
Shares sold     1,950,000     $ 172,556,067       4,300,000     $ 384,240,938  
Shares redeemed     (2,000,000 )     (167,991,821 )     (3,950,000 )     (347,795,597 )
Net increase(decrease)     (50,000 )   $ 4,564,246       350,000     $ 36,445,341  

  

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

 

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

 

11. LEGAL PROCEEDINGS

 

On June 16, 2016, investors in certain iShares funds (iShares Core S&P Small-Cap ETF, iShares Russell 1000 Growth ETF, iShares Core S&P 500 ETF, iShares Russell Mid-Cap Growth ETF, iShares Russell Mid-Cap ETF, iShares Russell Mid-Cap Value ETF, iShares Select Dividend ETF, iShares Morningstar Mid-Cap ETF, iShares Morningstar Large-Cap ETF, iShares U.S. Aerospace & Defense ETF and iShares Preferred and Income Securities ETF) filed a class action lawsuit against iShares Trust, BlackRock, Inc. and certain of its advisory affiliates, and certain directors/trustees and officers of the Funds (collectively, “Defendants”) in California State Court. The lawsuit

 

N o t e s  to  F i n a n c i a l  S t a t e m e n t s 61

 

 

 

 

Notes to Financial Statements (unaudited) (continued)

 

alleges the Defendants violated federal securities laws by failing to adequately disclose in the prospectuses issued by the funds noted above the risks of using stop-loss orders in the event of a ‘flash crash’, such as the one that occurred on May 6, 2010. On September 18, 2017, the court issued a Statement of Decision holdin g that the Plaintiffs lack standing to assert their claims. On October 11, 2017, the court entered final judgment dismissing all of the Plaintiffs’ claims with prejudice. In an opinion dated January 23, 2020, the California Court of Appeal affirmed the dismissal of Plaintiffs’ claims. On March 3, 2020, plaintiffs filed a petition for review by the California Supreme Court.

 

12. SUBSEQUENT EVENTS

 

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

  

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Statement Regarding Liquidity Risk Management Program

 

The Securities and Exchange Commission adopted Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”) to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders.

 

The Board of Directors (the “Board”) of iShares MSCI Hong Kong ETF, iShares MSCI Japan Small-Cap ETF, iShares MSCI Malaysia ETF, iShares MSCI Pacific ex Japan ETF, iShares MSCI Singapore ETF, iShares MSCI Taiwan ETF and iShares MSCI Thailand ETF met on December 3, 2019 (the “Meeting”) to review the liquidity risk management program (the “Program”) applicable to the iShares Funds (each, a “Fund”) pursuant to the Liquidity Rule. The Board has appointed BlackRock Fund Advisors (“BlackRock”), the investment adviser to the Funds, as the program administrator for each Fund’s Program, as applicable. BlackRock has delegated oversight of the Program to the 40 Act Liquidity Risk Management Committee (the “Committee”). At the Meeting, the Committee, on behalf of BlackRock, provided the Board with a report that addressed the operation of the Program and assessed its adequacy and effectiveness of implementation, including the operation of each Fund’s Highly Liquid Investment Minimum (“HLIM”) where applicable, and any material changes to the Program (the “Report”). The Report covered the period from December 1, 2018 through September 30, 2019 (the “Program Reporting Period”).

 

The Report described the Program’s liquidity classification methodology for categorizing a Fund’s investments (including derivative transactions) into one of four liquidity buckets. It also described BlackRock’s methodology in establishing a Fund’s HLIM and noted that the Committee reviews and ratifies the HLIM assigned to each Fund no less frequently than annually.

 

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

 

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

 

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

 

c) Holdings of cash and cash equivalents, as well as borrowing arrangements. The Committee considered that ETFs generally do not hold more than de minimus amounts of cash. Funds may borrow for temporary or emergency purposes, including to meet payments due from redemptions or to facilitate the settlement of securities or other transactions.

 

d) The relationship between an ETF’s portfolio liquidity and the way in which, and the prices and spreads at which, ETF shares trade, including the efficiency of the arbitrage function and the level of active participation by market participants, including authorized participants. The Committee monitored the prevailing bid/ask spread and the ETF price premium (or discount) to NAV for all ETFs and reviewed any persistent deviations from long-term averages.

 

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

 

There were no material changes to the Program during the Program Reporting Period. The Report provided to the Board stated that the Committee concluded that based on the operation of the functions, as described in the Report, the Program is operating as intended and is effective in implementing the requirements of the Liquidity Rule.

 

S t a t e m e n t  R e g a r d i n g  L i q u i d i t y  R i s k  M a n a g e m en t  P r o g r a m 63

 

 

 

 

Supplemental Information (unaudited)

 

Section 19(a) Notices

 

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

  

    Total Cumulative Distributions     % Breakdown of the Total Cumulative  
    For the Fiscal Year-to-Date     Distributions for the Fiscal Year-to-Date  
      Net                               Net                          
      Investment       Net Realized       Return of       Total Per       Investment       Net Realized       Return of       Total Per  
iShares ETF     Income       Gains       Capital       Share       Income       Capital Gains       Capital       Share  
MSCI Japan Small-Cap(a)   $ 1.642501     $     $ 0.481192     $ 2.123693       77 %     —%       23 %     100 %
MSCI Pacific ex Japan(a)     0.855782             0.100691       0.956473       89             11       100  
MSCI Singapore(a)     0.181629             0.500760       0.682389       27             73       100  
MSCI Taiwan(a)     0.957024             0.066466       1.023490       94             6       100  

  

(a) The Fund estimates that it has distributed more than its net investment income and net realized capital gains; therefore, a portion of the distribution may be a return of capital. A return of capital may occur, for example, when some or all of the shareholder's investment in the Fund is returned to the shareholder. A return of capital does not necessarily reflect the Fund's investment performance and should not be confused with "yield" or "income". When distributions exceed total return performance, the difference will incrementally reduce the Fund's net asset value per share.

 

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General Information

 

Electronic Delivery

 

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

 

To enroll in electronic delivery:

 

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

 

Householding

 

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

 

Availability of Quarterly Schedule of Investments

 

The iShares Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT, and for reporting periods ended prior to March 31, 2019, filed such information on Form N-Q. The iShares Funds' Forms N-Q are available on the SEC’s website at sec.gov. The iShares Funds also disclose their complete schedule of portfolio holdings on a daily basis on the iShares website at iShares.com.

 

Availability of Proxy Voting Policies and Proxy Voting Records

 

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

 

G e n e r a l   I n f o r m a t i o n 65

   

 

 

 

Glossary of Terms Used in this Report

 

Portfolio Abbreviations - Equity

 

ADR American Depositary Receipt
   
NVDR Non-Voting Depositary Receipt
   
NVS Non-Voting Shares

 

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Want to know more? 

iShares.com   |   1-800-474-2737

 

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

 

Investing involves risk, including possible loss of principal.

 

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

 

The iShares Funds are not sponsored, endorsed, issued, sold or promoted by MSCI Inc., nor does this company make any representation regarding the advisability of investing in the iShares Funds. BlackRock is not affiliated with the company listed above.

 

©2020 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.

 

iS-SAR-803-0220

 

   

  FEBRUARY 29, 2020

 

2020 Semi-Annual Report
(Unaudited)

 

iShares, Inc.

 

iShares MSCI Brazil ETF | EWZ | NYSE Arca

iShares MSCI Chile ETF | ECH | Cboe BZX

iShares MSCI Colombia ETF | ICOL | NYSE Arca

iShares MSCI Israel ETF | EIS | NYSE Arca

iShares MSCI Russia ETF | ERUS | NYSE Arca

iShares MSCI South Africa ETF | EZA | NYSE Arca

iShares MSCI Turkey ETF | TUR | NASDAQ

iShares MSCI USA Equal Weighted ETF | EUSA | NYSE Arca

 

 

 

 

 

 

 

 

 

 

 

 

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

 

You may elect to receive all future reports in paper free of charge. If you hold accounts through a financial intermediary, you can follow the instructions included with this disclosure, if applicable, or contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. Please note that not all financial intermediaries may offer this service. Your election to receive reports in paper will apply to all funds held with your financial intermediary.

 

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive electronic delivery of shareholder reports and other communications by contacting your financial intermediary. Please note that not all financial intermediaries may offer this service.

 

 

 

 

 

 

Fund Summary as of February 29, 2020 iShares® MSCI Brazil ETF

 

Investment Objective

 

The iShares MSCI Brazil ETF (the “Fund”) seeks to track the investment results of an index composed of Brazilian equities, as represented by the MSCI Brazil 25/50 Index (the "Index"). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

 

Performance

 

              Average Annual Total Returns     Cumulative Total Returns  
        6 Months       1 Year       5 Years       10 Years       1 Year       5 Years       10 Years  
Fund NAV       (5.53 )%     (9.25 )%     4.19 %     (3.01 )%     (9.25 )%     22.79 %     (26.35 )%
Fund Market       (4.91 )     (8.25 )     4.27       (2.92 )     (8.25 )     23.24       (25.63 )
Index       (5.14 )     (8.54 )     4.91       (2.41 )     (8.54 )     27.10       (21.63 )

 

Index performance through February 11, 2013 reflects the performance of the MSCI Brazil Index. Index performance beginning on February 12, 2013 reflects the performance of the MSCI Brazil 25/50 Index.

 

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 11 for more information.

 

Expense Example

 

Actual     Hypothetical 5% Return        
Beginning
Account Value
(09/01/19)
    Ending
Account Value
(02/29/20)
    Expenses
Paid During
the Period
(a)   Beginning
Account Value
(09/01/19)
    Ending
Account Value
(02/29/20)
    Expenses
Paid During
the Period
(a)   Annualized
Expense
Ratio
 
$ 1,000.00     $ 944.70     $ 2.80     $ 1,000.00     $ 1,022.00     $ 2.92       0.58 %

 

(a) Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 11 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

    Percent of  
Sector   Total Investments (a)
Financials     33.3 %
Energy     13.0  
Materials     12.2  
Consumer Staples     11.3  
Consumer Discretionary     9.1  
Industrials     7.8  
Utilities     6.1  
Communication Services.     2.5  
Health Care     2.5  
Real Estate     1.6  
Information Technology     0.6  

 

TEN LARGEST HOLDINGS
    Percent of  
Security   Total Investments (a)
Itau Unibanco Holding SA (Preferred)     8.7 %
Vale SA     7.8  
Banco Bradesco SA (Preferred)     6.8  
Petroleo Brasileiro SA (Preferred)     5.8  
Petroleo Brasileiro SA     5.4  
B3 SA - Brasil, Bolsa, Balcao     5.1  
Ambev SA     3.6  
Itausa-Investimentos Itau SA (Preferred)     2.7  
Lojas Renner SA     2.7  
Banco do Brasil SA     2.5  


(a) Excludes money market funds.

 

F u n d   S u m m a r y 3

 

 

 

 

Fund Summary as of February 29, 2020 iShares® MSCI Chile ETF

 

Investment Objective

 

The iShares MSCI Chile ETF (the “Fund”) seeks to track the investment results of a broad-based index composed of Chilean equities, as represented by the MSCI Chile IMI 25/50 Index (the "Index"). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

 

Performance

 

              Average Annual Total Returns     Cumulative Total Returns  
        6 Months       1 Year       5 Years       10 Years       1 Year       5 Years       10 Years  
Fund NAV       (25.14 )%     (39.61 )%     (6.43 )%     (5.63 )%     (39.61 )%     (28.28 )%     (43.97 )%
Fund Market       (23.28 )     (38.16 )     (6.14 )     (5.48 )     (38.16 )     (27.16 )     (43.06 )
Index       (25.07 )     (39.49 )     (6.37 )     (5.14 )     (39.49 )     (28.04 )     (41.03 )

 

Index performance through February 11, 2013 reflects the performance of the MSCI Chile Investable Market Index. Index performance beginning on February 12, 2013 reflects the performance of the MSCI Chile IMI 25/50 Index.

 

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 11 for more information.

 

Expense Example

 

Actual     Hypothetical 5% Return        
Beginning
Account Value
(09/01/19)
    Ending
Account Value
(02/29/20)
    Expenses
Paid During
the Period
(a)   Beginning
Account Value
(09/01/19)
    Ending
Account Value
(02/29/20)
    Expenses
Paid During
the Period
(a)   Annualized
Expense
Ratio
 
$ 1,000.00     $ 748.60     $ 2.52     $ 1,000.00     $ 1,022.00     $ 2.92       0.58 %

 

(a) Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 11 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR
    Percent of  
Sector   Total Investments (a)
Utilities     30.1 %
Financials     21.6  
Materials     12.1  
Consumer Staples     11.9  
Energy     6.6  
Industrials     5.9  
Consumer Discretionary     5.7  
Real Estate     3.0  
Communication Services     2.1  
Information Technology     1.0  

 

TEN LARGEST HOLDINGS
    Percent of  
Security   Total Investments (a)
Enel Americas SA     15.1 %
Banco de Chile     9.5  
Empresas COPEC SA     6.7  
Sociedad Quimica y Minera de Chile SA (Preferred), Series        
B     6.6  
Enel Chile SA     6.0  
Banco Santander Chile     4.8  
Empresas CMPC SA     4.4  
SACI Falabella     4.3  
Banco de Credito e Inversiones SA     4.3  
Cencosud SA     4.1  


(a) Excludes money market funds.

 

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Fund Summary as of February 29, 2020 iShares® MSCI Colombia ETF

 

Investment Objective

 

The iShares MSCI Colombia ETF (the “Fund”) seeks to track the investment results of a broad-based index composed of Colombian equities, as represented by the MSCI All Colombia Capped Index (the "Index"). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

 

Performance

 

              Average Annual Total Returns     Cumulative Total Returns
                                Since                       Since  
        6 Months       1 Year       5 Years       Inception       1 Year       5 Years       Inception  
Fund NAV       (2.23 )%     (7.50 )%     (3.59 )%     (8.64 )%     (7.50 )%     (16.72 )%     (45.43 )%
Fund Market       (4.21 )     (9.28 )     (4.26 )     (8.98 )     (9.28 )     (19.55 )     (46.77 )
Index       (1.92 )     (7.00 )     (3.43 )     (8.34 )     (7.00 )     (16.03 )     (44.19 )

 

The inception date of the Fund was 6/18/13. The first day of secondary market trading was 6/20/13.

 

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 11 for more information.

 

Expense Example

 

Actual     Hypothetical 5% Return        
Beginning
Account Value
(09/01/19)
    Ending
Account Value
(02/29/20)
    Expenses
Paid During
the Period
(a)   Beginning
Account Value
(09/01/19)
    Ending
Account Value
(02/29/20)
    Expenses
Paid During
the Period
(a)   Annualized
Expense
Ratio
 
$ 1,000.00     $ 977.70     $ 3.00     $ 1,000.00     $ 1,021.80     $ 3.07       0.61 %

 

(a) Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 11 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR
    Percent of  
Sector   Total Investments (a)
Financials     37.2 %
Energy     29.5  
Utilities     14.5  
Materials     10.6  
Consumer Staples     4.4  
Industrials     3.8  

 

TEN LARGEST HOLDINGS
    Percent of  
Security   Total Investments (a)
Ecopetrol SA     20.5 %
Bancolombia SA (Preferred)     15.7  
Bancolombia SA     6.4  
Grupo Energia Bogota SA ESP     4.9  
Canacol Energy Ltd.     4.7  
Enel Americas SA     4.6  
Interconexion Electrica SA ESP     4.6  
Banco Davivienda SA (Preferred)     4.5  
Grupo Nutresa SA     4.4  
Empresas COPEC SA     4.3  


(a) Excludes money market funds.

 

F u n d   S u m m a r y 5

 

 

 

 

Fund Summary as of February 29, 2020 iShares® MSCI Israel ETF

 

Investment Objective

 

The iShares MSCI Israel ETF (the “Fund”) seeks to track the investment results of a broad-based index composed of Israeli equities, as represented by the MSCI Israel Capped Investable Market Index (the "Index"). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

 

Performance

 

              Average Annual Total Returns     Cumulative Total Returns  
        6 Months       1 Year       5 Years       10 Years       1 Year       5 Years       10 Years  
Fund NAV       5.88 %     3.90 %     5.02 %     2.33 %     3.90 %     27.73 %     25.94 %
Fund Market       6.03       4.06       4.89       2.15       4.06       26.95       23.75  
Index       6.21       4.51       5.51       2.70       4.51       30.74       30.58  

 

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 11 for more information.

 

Expense Example

 

Actual     Hypothetical 5% Return              
Beginning
Account Value
(09/01/19)
    Ending
Account Value
(02/29/20)
    Expenses
Paid During
the Period
(a)   Beginning
Account Value
(09/01/19)
    Ending
Account Value
(02/29/20)
    Expenses
Paid During
the Period
(a)   Annualized
Expense
Ratio
 
$ 1,000.00     $ 1,058.80     $ 2.97     $ 1,000.00     $ 1,022.00     $ 2.92       0.58 %

 

(a) Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 11 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR
    Percent of  
Sector   Total Investments (a)
Information Technology     30.6 %
Financials     25.7  
Real Estate     14.2  
Health Care     9.9  
Industrials     8.4  
Consumer Staples     2.5  
Communication Services     2.5  
Materials     2.4  
Energy     2.0  
Other (each representing less than 1%)     1.8  

 

TEN LARGEST HOLDINGS
    Percent of  
Security   Total Investments (a)
Check Point Software Technologies Ltd.     10.1 %
Teva Pharmaceutical Industries Ltd.     9.7  
Bank Leumi Le-Israel BM     7.7  
Nice Ltd.     7.6  
Bank Hapoalim BM     7.0  
Wix. com Ltd.     4.3  
Israel Discount Bank Ltd., Class A     4.1  
Mizrahi Tefahot Bank Ltd.     3.1  
Elbit Systems Ltd.     3.1  
CyberArk Software Ltd.     3.0  


(a) Excludes money market funds.

 

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Fund Summary as of February 29, 2020 iShares® MSCI Russia ETF

 

Investment Objective

 

The iShares MSCI Russia ETF (the “Fund”) seeks to track the investment results of an index composed of Russian equities, as represented by the MSCI Russia 25/50 Index (the "Index"). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

 

Performance

 

              Average Annual Total Returns   Cumulative Total Returns
                                Since                       Since  
        6 Months       1 Year       5 Years       Inception       1 Year       5 Years       Inception  
Fund NAV       0.49 %     12.82 %     10.62 %     0.18 %     12.82 %     65.62 %     1.65 %
Fund Market       1.51       14.04       10.58       0.21       14.04       65.32       1.96  
Index       0.86       13.26       11.36       0.78       13.26       71.24       7.54  

 

The inception date of the Fund was 11/9/10. The first day of secondary market trading was 11/10/10.

 

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 11 for more information.

 

Expense Example

 

Actual     Hypothetical 5% Return        
Beginning
Account Value
(09/01/19)
    Ending
Account Value
(02/29/20)
    Expenses
Paid During
the Period
(a)   Beginning
Account Value
(09/01/19)
    Ending
Account Value
(02/29/20)
    Expenses
Paid During
the Period
(a)   Annualized
Expense
Ratio
 
$ 1,000.00     $ 1,004.90     $ 2.89     $ 1,000.00     $ 1,022.00     $ 2.92       0.58 %

 

(a) Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 11 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR
    Percent of  
Sector   Total Investments (a)
Energy     47.4 %
Materials     21.2  
Financials     18.9  
Consumer Staples     6.2  
Communication Services     3.7  
Utilities     2.6  

 

TEN LARGEST HOLDINGS
    Percent of  
Security   Total Investments (a)
LUKOIL PJSC     15.6 %
Sberbank of Russia PJSC     15.5  
Gazprom PJSC     14.0  
MMC Norilsk Nickel PJSC     4.5  
Novatek PJSC     4.5  
Tatneft PJSC     4.5  
Mobile TeleSystems PJSC     3.7  
Polyus PJSC     3.1  
X5 Retail Group NV     3.1  
Magnit PJSC     3.0  


(a) Excludes money market funds.

 

F u n d   S u m m a r y 7

 

 

 

 

Fund Summary as of February 29, 2020 iShares® MSCI South Africa ETF

 

Investment Objective

 

The iShares MSCI South Africa ETF (the “Fund”) seeks to track the investment results of an index composed of South African equities, as represented by the MSCI South Africa 25/50 Index (the "Index"). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

 

Performance

 

              Average Annual Total Returns     Cumulative Total Returns
        6 Months       1 Year       5 Years     10 Years       1 Year       5 Years       10 Years  
Fund NAV       (10.86 )%     (18.71 )%     (6.31 )%     0.49 %     (18.71 )%     (27.80 )%     5.04 %
Fund Market       (7.31 )     (15.14 )     (5.56 )     0.96       (15.14 )     (24.89 )     9.99  
Index       (10.61 )     (18.29 )     (5.76 )     1.10       (18.29 )     (25.66 )     11.58  

 

Index performance through August 31, 2017 reflects the performance of the MSCI South Africa Index. Index performance beginning on September 1, 2017 reflects the performance of the MSCI South Africa 25/50 Index.

 

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 11 for more information.

 

Expense Example

 

Actual     Hypothetical 5% Return        
Beginning
Account Value
(09/01/19)
    Ending
Account Value
(02/29/20)
    Expenses
Paid During
the Period
(a)   Beginning
Account Value
(09/01/19)
    Ending
Account Value
(02/29/20)
    Expenses
Paid During
the Period
(a)   Annualized
Expense
Ratio
 
$ 1,000.00     $ 891.40     $ 2.73     $ 1,000.00     $ 1,022.00     $ 2.92       0.58 %

 

(a) Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 11 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR
    Percent of  
Sector   Total Investments (a)
Financials     32.3 %
Consumer Discretionary     26.3  
Materials     16.8  
Consumer Staples     8.5  
Communication Services     7.1  
Real Estate     4.5  
Health Care     2.1  
Industrials     1.5  
Energy     0.9  

 

TEN LARGEST HOLDINGS
    Percent of  
Security   Total Investments (a)
Naspers Ltd., Class N     22.6 %
Standard Bank Group Ltd.     5.3  
FirstRand Ltd.     5.1  
MTN Group Ltd.     3.5  
Sanlam Ltd.     3.4  
AngloGold Ashanti Ltd.     3.3  
Sasol Ltd.     3.0  
Impala Platinum Holdings Ltd.     2.8  
Absa Group Ltd.     2.7  
Bid Corp. Ltd.     2.7  


(a) Excludes money market funds.

 

8 2 0 2 0  i S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

 

Fund Summary as of February 29, 2020 iShares® MSCI Turkey ETF

 

Investment Objective

 

The iShares MSCI Turkey ETF (the “Fund”) seeks to track the investment results of a broad-based index composed of Turkish equities, as represented by the MSCI Turkey IMI 25/50 Index (the "Index"). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

 

Performance

 

              Average Annual Total Returns   Cumulative Total Returns
        6 Months       1 Year       5 Years       10 Years       1 Year       5 Years       10 Years  
Fund NAV       (0.31 )%     (12.21 )%     (11.13 )%     (4.84 )%     (12.21 )%     (44.56 )%     (39.14 )%
Fund Market       (0.72 )     (11.75 )     (11.14 )     (4.84 )     (11.75 )     (44.60 )     (39.13 )
Index       (0.19 )     (11.90 )     (10.93 )     (4.52 )     (11.90 )     (43.94 )     (37.05 )

 

Index performance through May 28, 2019 reflects the performance of MSCI Turkey Investable Market Index. Index performance beginning on May 29, 2019 reflects the performance of the MSCI Turkey IMI 25/50 Index.

 

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 11 for more information.

 

Expense Example

 

Actual     Hypothetical 5% Return        
Beginning
Account Value
(09/01/19)
    Ending
Account Value
(02/29/20)
    Expenses
Paid During
the Period
(a)   Beginning
Account Value
(09/01/19)
    Ending
Account Value
(02/29/20)
    Expenses
Paid During
the Period
(a)   Annualized
Expense
Ratio
 
$ 1,000.00     $ 996.90     $ 2.88     $ 1,000.00     $ 1,022.00     $ 2.92       0.58 %

 

(a) Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 11 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR
    Percent of  
Sector   Total Investments (a)
Financials     27.1 %
Industrials     20.3  
Consumer Staples     17.2  
Materials     12.9  
Consumer Discretionary     7.6  
Energy     5.5  
Communication Services     4.8  
Health Care     1.7  
Utilities     1.5  
Real Estate     1.4  

 

TEN LARGEST HOLDINGS
    Percent of  
Security   Total Investments (a)
Turkiye Garanti Bankasi AS     9.8 %
BIM Birlesik Magazalar AS     9.1  
Akbank T. A. S.     8.6  
KOC Holding AS     5.7  
Tupras Turkiye Petrol Rafinerileri AS     5.5  
Turkcell Iletisim Hizmetleri AS     4.8  
Aselsan Elektronik Sanayi Ve Ticaret AS     4.7  
Eregli Demir ve Celik Fabrikalari TAS     4.7  
Haci Omer Sabanci Holding AS     3.3  
Turk Hava Yollari AO     3.3  


(a) Excludes money market funds.

 

F u n d   S u m m a r y 9

 

 

 

 

Fund Summary as of February 29, 2020 iShares® MSCI USA Equal Weighted ETF

 

Investment Objective

 

The iShares MSCI USA Equal Weighted ETF (the “Fund”) seeks to track the investment results of an index composed of equal weighted U.S. equities, as represented by the MSCI USA Equal Weighted Index (the "Index"). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

 

Performance

 

              Average Annual Total Returns     Cumulative Total Returns          
                                Since                       Since  
        6 Months       1 Year       5 Years       Inception       1 Year       5 Years       Inception  
Fund NAV       0.05 %     2.43 %     6.83 %     10.95 %     2.43 %     39.13 %     177.38 %
Fund Market       0.17       2.52       6.84       10.95       2.52       39.22       177.57  
Index       0.12       2.61       6.97       11.12       2.61       40.05       181.56  

 

The inception date of the Fund was 5/5/10. The first day of secondary market trading was 5/7/10.

 

Index performance through August 31, 2015 reflects the performance of the MSCI USA Index. Index performance beginning on September 1, 2015 reflects the performance of the MSCI USA Equal Weighted Index.

 

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 11 for more information.

 

Expense Example

 

Actual     Hypothetical 5% Return        
Beginning
Account Value
(09/01/19)
    Ending
Account Value
(02/29/20)
    Expenses
Paid During
the Period
(a)   Beginning
Account Value
(09/01/19)
    Ending
Account Value
(02/29/20)
    Expenses
Paid During
the Period
(a)   Annualized
Expense
Ratio
 
$ 1,000.00     $ 1,000.50     $ 0.75     $ 1,000.00     $ 1,024.10     $ 0.75       0.15 %

 

(a) Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 11 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR
    Percent of  
Sector   Total Investments (a)
Information Technology     15.9 %
Financials     14.0  
Industrials     13.7  
Health Care     12.0  
Consumer Discretionary     11.4  
Real Estate     6.6  
Communication Services     6.0  
Consumer Staples     5.7  
Materials     5.3  
Utilities     5.0  
Energy     4.4  

 

TEN LARGEST HOLDINGS
    Percent of  
Security   Total Investments (a)
Domino's Pizza Inc.     0.2 %
Regeneron Pharmaceuticals Inc.     0.2  
Zillow Group Inc., Class C     0.2  
Dropbox Inc., Class A     0.2  
E*TRADE Financial Corp.     0.2  
Gilead Sciences Inc.     0.2  
BioMarin Pharmaceutical Inc.     0.2  
Square Inc., Class A     0.2  
Sprint Corp.     0.2  
Zayo Group Holdings Inc.     0.2  



(a) Excludes money market funds.

 

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About Fund Performance

 

Past performance is no guarantee of future results. Financial markets have experienced extreme volatility and trading in many instruments has been disrupted. These circumstances may continue for an extended period of time, and may continue to affect adversely the value and liquidity of the fund's investments. As a result, current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at iShares.com. Performance results assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. The investment return and principal value of shares will vary with changes in market conditions. Shares may be worth more or less than their original cost when they are redeemed or sold in the market. Performance for certain funds may reflect a waiver of a portion of investment advisory fees. Without such a waiver, performance would have been lower.

 

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

 

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

 

Shareholder Expenses

 

As a shareholder of your Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares and (2) ongoing costs, including management fees and other fund expenses. The expense example, which is based on an investment of $1,000 invested at the beginning of the period (or from the commencement of operations if less than 6 months) and held through the end of the period, is intended to help you understand your ongoing costs (in dollars and cents) of investing in your Fund and to compare these costs with the ongoing costs of investing in other funds.

 

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

 

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

 

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

 

A b o u t   F u n d   P e r f o r m a n c e / S h a r e h o l d e r   E x p e n s e s 11

 

 

 

 

Schedule of Investments (unaudited) iShares® MSCI Brazil ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
Common Stocks                
                 
Aerospace & Defense — 0.8%                
                 
Embraer SA(a)     18,283,787     $ 68,731,623  
                 
Banks — 5.1%                
Banco Bradesco SA     22,594,248       136,667,744  
Banco do Brasil SA     20,937,587       217,467,075  
Banco Santander Brasil SA     10,846,475       95,827,578  
              449,962,397  
Beverages — 3.6%                
Ambev SA     98,321,055       316,865,923  
                 
Capital Markets — 5.5%                
B3 SA - Brasil, Bolsa, Balcao     42,262,877       449,639,953  
Banco BTG Pactual SA     2,725,200       40,808,687  
              490,448,640  
Containers & Packaging — 0.9%                
Klabin SA     19,537,300       83,360,417  
                 
Diversified Consumer Services — 1.2%                
Cogna Educacao     45,809,819       102,450,561  
                 
Electric Utilities — 2.4%                
Centrais Eletricas Brasileiras SA     7,952,396       60,863,816  
Energisa SA     2,575,500       30,826,194  
Equatorial Energia SA     22,680,000       123,965,467  
              215,655,477  
Electrical Equipment — 2.3%                
WEG SA     21,049,481       201,319,940  
                 
Food & Staples Retailing — 2.4%                
Atacadao SA     11,917,500       54,652,527  
Raia Drogasil SA     5,956,600       158,300,476  
              212,953,003  
Food Products — 2.5%                
BRF SA(a)     14,865,650       89,095,381  
JBS SA     27,284,607       137,280,281  
              226,375,662  
Health Care Providers & Services — 1.6%                
Hapvida Participacoes e Investimentos SA(b)     2,334,800       28,566,258  
Notre Dame Intermedica Participacoes SA     8,118,800       113,783,588  
              142,349,846  
Independent Power and Renewable Electricity Producers — 0.7%  
Engie Brasil Energia SA     6,031,443       63,540,941  
                 
Insurance — 4.4%                
BB Seguridade Participacoes SA     17,629,495       124,455,447  
IRB Brasil Resseguros S/A     18,242,700       134,445,219  
Porto Seguro SA     3,343,820       45,195,470  
Sul America SA     6,917,249       82,884,639  
              386,980,775  
Internet & Direct Marketing Retail — 0.9%                
B2W Cia. Digital(a)     5,846,088       80,532,481  
                 
IT Services — 0.6%                
Cielo SA     34,911,296       53,005,525  
                 
Metals & Mining — 8.2%                
Cia. Siderurgica Nacional SA     18,084,869       44,814,831  
Vale SA     69,788,732       685,411,926  
              730,226,757  

 

Security   Shares     Value  
             
Multiline Retail — 4.9%                
Lojas Renner SA     19,711,309     $ 232,866,638  
Magazine Luiza SA     18,165,900       203,415,883  
              436,282,521  
Oil, Gas & Consumable Fuels — 7.1%                
Cosan SA     4,559,650       73,948,465  
Petroleo Brasileiro SA     78,640,369       473,238,398  
Ultrapar Participacoes SA     19,434,110       82,187,851  
              629,374,714  
Paper & Forest Products — 1.3%                
Suzano SA     14,126,930       119,424,404  
                 
Personal Products — 1.9%                
Natura & Co. Holding SA     16,520,063       166,641,488  
                 
Pharmaceuticals — 0.8%                
Hypera SA     9,939,900       75,568,488  
                 
Real Estate Management & Development — 1.6%          
BR Malls Participacoes SA     22,276,538       80,679,714  
Multiplan Empreendimentos Imobiliarios SA     8,681,138       58,725,373  
              139,405,087  
Road & Rail — 3.4%                
Localiza Rent a Car SA     15,353,138       168,584,539  
Rumo SA(a)     28,384,790       132,875,281  
              301,459,820  
Specialty Retail — 0.7%                
Petrobras Distribuidora SA     10,191,400       58,957,486  
                 
Transportation Infrastructure — 1.3%                
CCR SA     32,047,665       115,997,112  
                 
Water Utilities — 1.3%                
Cia. de Saneamento Basico do Estado de Sao Paulo.     9,021,500       117,476,561  
                 
Wireless Telecommunication Services — 1.0%          
TIM Participacoes SA     23,843,125       85,243,671  
                 
Total Common Stocks — 68.4%                
(Cost: $4,830,482,165)             6,070,591,320  
                 
Preferred Stocks                
                 
Banks — 18.1%                
Banco Bradesco SA, Preference Shares, NVS     88,562,146       599,293,455  
Itau Unibanco Holding SA, Preference Shares, NVS     107,660,747       763,610,631  
Itausa-Investimentos Itau SA, Preference Shares, NVS     89,796,927       239,039,175  
              1,601,943,261  
Chemicals — 0.4%                
Braskem SA, Class A, Preference Shares, NVS     5,249,456       31,287,416  
                 
Diversified Telecommunication Services — 1.5%                
Telefonica Brasil SA, Preference Shares, NVS     11,587,464       137,098,141  
                 
Electric Utilities — 1.6%                
Centrais Eletricas Brasileiras SA, Class B, Preference                
Shares, NVS     7,607,646       60,451,079  
Cia. Energetica de Minas Gerais, Preference                
Shares, NVS     25,644,670       79,350,037  
              139,801,116  
Food & Staples Retailing — 0.8%                
Cia. Brasileira de Distribuicao, Preference                
Shares, NVS     4,356,864       69,636,045  


12 2 0 2 0  i S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI Brazil ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
Metals & Mining — 1.2%                
Gerdau SA, Preference Shares, NVS     27,958,726     $ 104,915,326  
                 
Multiline Retail — 1.3%                
Lojas Americanas SA, Preference Shares, NVS     20,080,017       118,388,717  
                 
Oil, Gas & Consumable Fuels — 5.7%                
Petroleo Brasileiro SA, Preference Shares, NVS     90,707,483       509,464,967  
                 
Total Preferred Stocks — 30.6%                
(Cost: $2,236,248,752)             2,712,534,989  
                 
Short-Term Investments                
                 
Money Market Funds — 0.0%                
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52%(c)(d)     638,000       638,000  
                 
Total Short-Term Investments — 0.0%                
(Cost: $638,000)             638,000  
                 
Total Investments in Securities — 99.0%                
(Cost: $7,067,368,917)             8,783,764,309  
                 
Other Assets, Less Liabilities — 1.0%             88,018,344  
                 
Net Assets — 100.0%           $ 8,871,782,653  

 

(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) Affiliate of the Fund.

(d) Annualized 7-day yield as of period-end.



Affiliates

 

Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940Act, were as follows:

 

                                        Change in  
    Shares           Shares                       Unrealized  
    Held at           Held at     Value at           Net Realized     Appreciation  
Affiliated Issuer   08/31/19     Net Activity     02/29/20     02/29/20     Income     Gain (Loss)(a)     (Depreciation)  
BlackRock Cash Funds: Treasury, SL Agency Shares     5,634,000       (4,996,000 )     638,000     $ 638,000     $ 186,108     $     $  

 

(a) Includes realized capital gain distributions from an affiliated fund, if any.

 

Futures Contracts

 

                      Value/  
                Notional     Unrealized  
    Number of     Expiration     Amount     Appreciation  
Description     Contracts       Date       (000 )     (Depreciation)  
Long Contracts                                
MISC Brazil Index     1,740       03/20/20     $ 85,860     $ (18,465,582 )

 

Derivative Financial Instruments Categorized by Risk Exposure

 

As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

    Equity  
    Contracts  
Liabilities — Derivative Financial Instruments        
Futures contracts        
Unrealized depreciation on futures contracts(a)   $ 18,465,582  

 

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

 

S c h e d u l e   o f   I n v e s t m e n t s 13

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI Brazil ETF
February 29, 2020  

 

For the six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

    Equity  
    Contracts  
Net Realized Gain (Loss) from:        
Futures contracts   $ 5,696,849  
         
Net Change in Unrealized Appreciation (Depreciation) on:        
Futures contracts   $ (18,977,535 )

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments        

 

Futures contracts:        
Average notional value of contracts — long   $ 59,045,800  

 

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

 

Fair Value Measurements

 

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

 

The following table summarizes the value of the Fund's investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund's investments into major categories is disclosed in the Schedule of Investments above.

 

    Level 1     Level 2     Level 3     Total  
Investments                        
Assets                        
Common Stocks   $ 6,070,591,320     $     $     $ 6,070,591,320  
Preferred Stocks     2,712,534,989                   2,712,534,989  
Money Market Funds     638,000                   638,000  
    $ 8,783,764,309     $     $     $ 8,783,764,309  
Derivative financial instruments(a)                                
Liabilities                                
Futures Contracts   $ (18,465,582 )   $     $     $ (18,465,582 )

 

(a) Shown at the unrealized appreciation (depreciation) on the contracts.

 

See notes to financial statements.

 

14 2 0 2 0  i S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

 

Schedule of Investments (unaudited) iShares® MSCI Chile ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
Common Stocks                
                 
Airlines — 3.9%                
Latam Airlines Group SA     2,645,954     $ 17,598,192  
                 
Banks — 20.7%                
Banco de Chile     491,942,467       43,207,557  
Banco de Credito e Inversiones SA     521,333       19,383,244  
Banco Santander Chile     486,838,055       21,655,578  
Grupo Security SA     15,358,975       3,022,067  
Itau CorpBanca     1,867,997,205       6,833,664  
              94,102,110  
Beverages — 4.5%                
Cia. Cervecerias Unidas SA     1,701,661       12,744,877  
Vina Concha y Toro SA     4,653,438       7,683,593  
              20,428,470  
Construction & Engineering — 1.1%                
Besalco SA     6,143,642       2,462,684  
Salfacorp SA     5,294,343       2,477,724  
              4,940,408  
Diversified Financial Services — 0.8%                
Inversiones La Construccion SA     487,069       3,634,864  
                 
Electric Utilities — 22.9%                
Enel Americas SA     409,729,157       68,427,212  
Enel Chile SA     305,999,609       27,230,470  
Engie Energia Chile SA     6,441,353       8,282,446  
              103,940,128  
Food & Staples Retailing — 5.1%                
Cencosud SA     16,046,305       18,778,361  
SMU SA     29,860,765       4,451,468  
              23,229,829  
Independent Power and Renewable Electricity Producers — 3.8%                
AES Gener SA     37,815,913       5,552,093  
Colbun SA     92,029,227       11,521,463  
              17,073,556  
IT Services — 1.0%                
SONDA SA     6,467,351       4,563,719  
                 
Marine — 0.9%                
Cia. Sud Americana de Vapores SA(a)     143,497,481       4,196,488  
                 
Metals & Mining — 1.1%                
CAP SA     897,685       5,066,597  
                 
Multiline Retail — 5.2%                
Ripley Corp. SA     10,175,426       3,969,301  
SACI Falabella     5,918,301       19,623,540  
              23,592,841  

 

Security   Shares     Value  
             
Oil, Gas & Consumable Fuels — 6.6%                
Empresas COPEC SA     3,895,074     $ 30,146,191  
                 
Paper & Forest Products — 4.4%                
Empresas CMPC SA     9,861,725       19,835,732  
                 
Real Estate Management & Development — 3.0%                
Parque Arauco SA     6,751,299       13,826,365  
                 
Textiles, Apparel & Luxury Goods — 0.4%                
Forus SA     1,730,295       2,077,417  
                 
Water Utilities — 3.4%                
Aguas Andinas SA, Class A     30,862,575       10,534,577  
Inversiones Aguas Metropolitanas SA     5,475,977       4,740,155  
              15,274,732  
Wireless Telecommunication Services — 2.1%                
Empresa Nacional de Telecomunicaciones SA(a)     1,793,280       9,410,058  
                 
Total Common Stocks — 90.9%                
(Cost: $475,734,092)             412,937,697  
                 
Preferred Stocks                
                 
Beverages — 2.2%                
Embotelladora Andina SA, Class B, Preference Shares     4,239,670       10,207,292  
                 
Chemicals — 6.6%                
Sociedad Quimica y Minera de Chile SA, Series B,                
Preference Shares     1,137,689       29,756,629  
                 
Total Preferred Stocks — 8.8%                
(Cost: $36,964,091)             39,963,921  
                 
Short-Term Investments                
                 
Money Market Funds — 0.1%                
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52%(b)(c)     412,000       412,000  
                 
Total Short-Term Investments — 0.1%                
(Cost: $412,000)             412,000  
                 
Total Investments in Securities — 99.8%                
(Cost: $513,110,183)             453,313,618  
                 
Other Assets, Less Liabilities — 0.2%             903,992  
                 
Net Assets — 100.0%           $ 454,217,610  

 

(a) Non-income producing security.
(b) Affiliate of the Fund.

(c) Annualized 7-day yield as of period-end.



Affiliates

 

Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940Act, were as follows:

 

                                        Change in  
    Shares           Shares                       Unrealized  
    Held at           Held at     Value at           Net Realized     Appreciation  
Affiliated Issuer   08/31/19     Net Activity     02/29/20     02/29/20     Income     Gain (Loss) (a)   (Depreciation)  
BlackRock Cash Funds: Treasury, SL Agency Shares           412,000       412,000     $ 412,000     $ 7,819     $     $  

 

(a) Includes realized capital gain distributions from an affiliated fund, if any.

 

S c h e d u l e   o f   I n v e s t m e n t s 15

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI Chile ETF
February 29, 2020  

 

Futures Contracts

 

                      Value/  
                Notional     Unrealized  
    Number of     Expiration     Amount     Appreciation  
Description     Contracts       Date       (000 )     (Depreciation)  
Long Contracts                                
MSCI Emerging Markets E-Mini     16       03/20/20     $ 807     $ (20,979 )

 

Derivative Financial Instruments Categorized by Risk Exposure

 

As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

    Equity  
    Contracts  
Liabilities — Derivative Financial Instruments        
Futures contracts        
Unrealized depreciation on futures contracts(a)   $ 20,979  

 

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

 

For the six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

    Equity  
    Contracts  
Net Realized Gain (Loss) from:        
Futures contracts   $ 187,717  
         
Net Change in Unrealized Appreciation (Depreciation) on:        
Futures contracts   $ (20,979 )

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments        

 

Futures contracts:        
Average notional value of contracts — long   $ 286,313  

 

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

 

Fair Value Measurements

 

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

 

The following table summarizes the value of the Fund's investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund's investments into major categories is disclosed in the Schedule of Investments above.

 

    Level 1     Level 2     Level 3     Total  
Investments                        
Assets                        
Common Stocks   $ 412,937,697     $     $     $ 412,937,697  
Preferred Stocks     39,963,921                   39,963,921  
Money Market Funds     412,000                   412,000  
    $ 453,313,618     $     $     $ 453,313,618  
Derivative financial instruments(a)                                
Liabilities                                
Futures Contracts   $ (20,979 )   $     $     $ (20,979 )

 

(a) Shown at the unrealized appreciation (depreciation) on the contracts.

 

See notes to financial statements.

 

16 2 0 2 0  i S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

 

Schedule of Investments (unaudited) iShares® MSCI Colombia ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
Common Stocks                
                 
Banks — 6.6%                
Banco de Bogota SA     1,185     $ 28,744  
Bancolombia SA     114,159       1,255,181  
Grupo Aval Acciones y Valores SA     59,591       23,940  
              1,307,865  
Capital Markets — 1.6%                
Bolsa de Valores de Colombia     107,716       314,609  
                 
Construction & Engineering — 1.2%                
Construcciones El Condor SA     300,219       115,109  
Constructora Conconcreto SA(a)     952,674       127,844  
              242,953  
Construction Materials — 8.3%                
Cementos Argos SA     115,970       173,282  
CEMEX Latam Holdings SA(a)     542,594       547,633  
Grupo Argos SA     113,671       480,698  
Tecnoglass Inc.     59,256       431,976  
              1,633,589  
Diversified Financial Services — 5.0%                
Corp. Financiera Colombiana SA(a)     17,209       156,222  
Grupo de Inversiones Suramericana SA     96,203       827,218  
              983,440  
Electric Utilities — 9.3%                
Celsia SA ESP     23,605       29,947  
Enel Americas SA     5,441,047       908,687  
Interconexion Electrica SA ESP     173,069       907,536  
              1,846,170  
Food Products — 4.4%                
Grupo Nutresa SA     130,951       864,624  
                 
Gas Utilities — 5.0%                
Grupo Energia Bogota SA ESP(a)     1,433,005       973,635  
Promigas SA ESP     11,736       26,966  
              1,000,601  
Metals & Mining — 1.5%                
Mineros SA     298,052       289,476  
                 
Oil, Gas & Consumable Fuels — 29.4%                
Canacol Energy Ltd.     290,234       925,393  
Ecopetrol SA     4,620,496       4,044,657  
Empresas COPEC SA     108,137       836,934  
              5,806,984  
                 
Total Common Stocks — 72.3%                
(Cost: $13,246,562)             14,290,311  

 

Security   Shares     Value  
             
Preferred Stocks                
                 
Airlines — 2.5%                
Avianca Holdings SA, Preference Shares, NVS     1,092,962     $ 505,336  
                 
Banks — 23.6%                
Banco Davivienda SA, Preference Shares, NVS     73,988       876,077  
Bancolombia SA, Preference Shares, NVS     260,489       3,090,271  
Grupo Aval Acciones y Valores SA, Preference Shares, NVS     1,719,319       702,839  
              4,669,187  
Construction Materials — 0.8%                
Cementos Argos SA, Preference Shares, NVS     18,549       23,898  
Grupo Argos SA/Colombia, Preference Shares, NVS     39,515       139,253  
              163,151  
Diversified Financial Services — 0.3%                
Grupo de Inversiones Suramericana SA, Preference                
Shares, NVS     7,094       52,799  
                 
Total Preferred Stocks — 27.2%                
(Cost: $4,589,383)             5,390,473  
                 
Short-Term Investments                
                 
Money Market Funds — 0.1%                
BlackRock Cash Funds: Treasury, SL Agency Shares,                
1.52%(b)(c)     12,000       12,000  
                 
Total Short-Term Investments — 0.1%                
(Cost: $12,000)             12,000  
                 
Total Investments in Securities — 99.6%                
(Cost: $17,847,945)             19,692,784  
                 
Other Assets, Less Liabilities — 0.4%             79,551  
                 
Net Assets — 100.0%           $ 19,772,335  

 

(a) Non-income producing security.
(b) Affiliate of the Fund.

(c) Annualized 7-day yield as of period-end.



Affiliates

 

Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940Act, were as follows:

 

                                        Change in  
    Shares           Shares                       Unrealized  
    Held at           Held at     Value at           Net Realized     Appreciation  
Affiliated Issuer   08/31/19     Net Activity     02/29/20     02/29/20     Income     Gain (Loss) (a)   (Depreciation)  
BlackRock Cash Funds: Treasury, SL Agency Shares           12,000       12,000     $ 12,000     $ 262     $     $  

 

(a) Includes realized capital gain distributions from an affiliated fund, if any.

 

S c h e d u l e   o f   I n v e s t m e n t s 17

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI Colombia ETF
February 29, 2020  

 

Fair Value Measurements

 

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

 

The following table summarizes the value of the Fund's investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund's investments into major categories is disclosed in the Schedule of Investments above.

 

    Level 1     Level 2     Level 3     Total  
Investments                        
Assets                        
Common Stocks   $ 14,290,311     $     $     $ 14,290,311  
Preferred Stocks     5,390,473                   5,390,473  
Money Market Funds     12,000                   12,000  
    $ 19,692,784     $     $     $ 19,692,784  

 

See notes to financial statements.

 

18 2 0 2 0  i S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

 

Schedule of Investments (unaudited) iShares® MSCI Israel ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
Common Stocks                
                 
Aerospace & Defense — 3.1%                
Elbit Systems Ltd.     23,585     $ 3,512,688  
                 
Banks — 23.2%                
Bank Hapoalim BM     1,020,327       7,969,387  
Bank Leumi Le-Israel BM     1,347,293       8,744,246  
FIBI Holdings Ltd.     3,251       98,701  
First International Bank of Israel Ltd.     50,357       1,349,430  
Israel Discount Bank Ltd., Class A     1,110,486       4,646,903  
Mizrahi Tefahot Bank Ltd.     138,039       3,558,318  
              26,366,985  
Biotechnology — 0.2%                
UroGen Pharma Ltd.(a)(b)     10,162       277,016  
                 
Building Products — 0.2%                
Caesarstone Ltd.     26,740       289,060  
                 
Chemicals — 2.4%                
Israel Chemicals Ltd.     624,609       2,313,168  
Israel Corp. Ltd. (The)(a)     2,667       374,452  
              2,687,620  
Communications Equipment — 1.5%                
Gilat Satellite Networks Ltd.     16,941       157,940  
Ituran Location and Control Ltd.     20,565       470,733  
Radware Ltd.(a)     46,456       1,055,480  
              1,684,153  
Construction & Engineering — 3.5%                
Ashtrom Group Ltd.     16,564       242,430  
Elco Ltd.     8,283       316,241  
Electra Ltd./Israel     2,375       1,156,413  
Shapir Engineering and Industry Ltd.     126,119       883,201  
Shikun & Binui Ltd.     257,338       1,399,682  
              3,997,967  
Consumer Finance — 0.1%                
Isracard Ltd.(a)     29,248       103,039  
                 
Diversified Telecommunication Services — 1.4%                
Bezeq The Israeli Telecommunication Corp. Ltd.(a)     2,217,827       1,627,448  
                 
Equity Real Estate Investment Trusts (REITs) — 1.0%          
REIT 1 Ltd     198,697       1,193,980  
                 
Food & Staples Retailing — 1.2%                
Rami Levy Chain Stores Hashikma Marketing 2006 Ltd.     8,659       483,618  
Shufersal Ltd.     133,103       840,615  
              1,324,233  
Food Products — 1.4%                
Mehadrin Ltd.(a).     369       13,275  
Strauss Group Ltd.     51,005       1,533,919  
              1,547,194  
Hotels, Restaurants & Leisure — 0.3%                
Fattal Holdings 1998 Ltd.     2,419       293,489  
                 
Household Durables — 0.2%                
Maytronics Ltd.     25,320       205,090  
                 
Independent Power and Renewable Electricity Producers — 0.9%  
Energix-Renewable Energies Ltd.(a)     67,993       232,914  
Enlight Renewable Energy Ltd.(a)     254,722       358,948  

 

Security   Shares     Value  
             
Independent Power and Renewable Electricity Producers (continued)  
Kenon Holdings Ltd./Singapore     24,583     $ 405,563  
              997,425  
Insurance — 2.4%                
Clal Insurance Enterprises Holdings Ltd.(a)     37,500       393,002  
Harel Insurance Investments & Financial Services Ltd.     129,780       767,216  
IDI Insurance Co. Ltd.     8,735       246,058  
Menora Mivtachim Holdings Ltd.     35,748       419,180  
Migdal Insurance & Financial Holdings Ltd.     487,400       353,049  
Phoenix Holdings Ltd. (The)     102,597       516,304  
              2,694,809  
IT Services — 5.4%                
Formula Systems 1985 Ltd.     5,159       341,037  
Matrix IT Ltd.     45,273       833,778  
Wix.com Ltd.(a)(b)     36,859       4,940,212  
              6,115,027  
Machinery — 1.5%                
Kornit Digital Ltd.(a)     43,019       1,714,307  
                 
Oil, Gas & Consumable Fuels — 2.0%                
Delek Group Ltd.     4,939       483,517  
Equital Ltd.(a)     11,171       269,777  
Naphtha Israel Petroleum Corp. Ltd.     51,600       214,300  
Oil Refineries Ltd.     1,179,601       398,673  
Paz Oil Co. Ltd.     8,158       893,515  
              2,259,782  
Paper & Forest Products — 0.1%                
Hadera Paper Ltd.     2,677       81,428  
                 
Pharmaceuticals — 9.7%                
Teva Pharmaceutical Industries Ltd., ADR(a)(b).     952,892       10,986,845  
                 
Real Estate Management & Development — 13.2%                
AFI Properties Ltd.(a)     30,429       1,267,246  
Airport City Ltd.(a)     80,777       1,532,524  
Alony Hetz Properties & Investments Ltd.     119,065       1,960,886  
Amot Investments Ltd.     150,163       1,130,287  
Azrieli Group Ltd.     41,858       3,045,177  
Bayside Land Corp.     977       803,673  
Big Shopping Centers Ltd.     2,841       308,723  
Blue Square Real Estate Ltd.     4,420       302,566  
Brack Capital Properties NV(a)     1,466       140,813  
Gazit-Globe Ltd.     109,047       1,268,373  
Industrial Buildings Corp. Ltd.(a)     384,161       1,094,255  
Melisron Ltd.     20,553       1,277,403  
Norstar Holdings Inc.     18,254       424,484  
Property & Building Corp. Ltd.     1,439       148,458  
Summit Real Estate Holdings Ltd.     17,342       276,268  
              14,981,136  
Semiconductors & Semiconductor Equipment — 2.1%    
Nova Measuring Instruments Ltd.(a)     17,521       612,237  
Tower Semiconductor Ltd.(a)     94,066       1,809,970  
              2,422,207  
Software — 21.6%                
Check Point Software Technologies Ltd.(a)(b)     110,174       11,436,061  
CyberArk Software Ltd.(a)(b)     32,471       3,399,714  
Hilan Ltd.     8,355       319,469  
Nice Ltd.(a)     53,801       8,598,544  
Sapiens International Corp. NV(b)     34,947       810,766  
              24,564,554  


S c h e d u l e   o f   I n v e s t m e n t s 19

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI Israel ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
Specialty Retail — 0.2%                
Delek Automotive Systems Ltd.     53,416     $ 287,627  
                 
Textiles, Apparel & Luxury Goods — 0.2%                
Delta-Galil Industries Ltd.(b)     12,922       247,973  
                 
Wireless Telecommunication Services — 1.0%                
Cellcom Israel Ltd.(a)     109,282       398,453  
Partner Communications Co. Ltd.(a)     165,150       803,660  
              1,202,113  
                 
Total Common Stocks — 100.0%                
(Cost: $129,294,618)             113,665,195  
                 
Short-Term Investments                
                 
Money Market Funds — 16.0%                
BlackRock Cash Funds: Institutional, SL Agency Shares,                
1.74%(c)(d)(e)     18,040,902       18,053,530  
BlackRock Cash Funds: Treasury, SL Agency Shares,                
1.52%(c)(d)     50,000       50,000  
              18,103,530  
Total Short-Term Investments — 16.0%                
(Cost: $18,098,551)             18,103,530  
                 
Total Investments in Securities — 116.0%                
(Cost: $147,393,169)             131,768,725  
                 
Other Assets, Less Liabilities — (16.0)%             (18,135,563 )
                 
Net Assets — 100.0%           $ 113,633,162  

 

(a) Non-income producing security.

(b) All or a portion of this security is on loan.
(c) Affiliate of the Fund.

(d) Annualized 7-day yield as of period-end.

(e) All or a portion of this security was purchased with cash collateral received from loaned securities.



Affiliates

 

Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940Act, were as follows:

 

                                        Change in  
    Shares           Shares                       Unrealized  
    Held at           Held at     Value at           Net Realized     Appreciation  
Affiliated Issuer   08/31/19     Net Activity     02/29/20     02/29/20     Income     Gain (Loss) (a)   (Depreciation)  
BlackRock Cash Funds: Institutional, SL Agency Shares     7,807,734       10,233,168       18,040,902     $ 18,053,530     $ 21,254 (b)   $ 164     $ 3,774  
BlackRock Cash Funds: Treasury, SL Agency Shares     92,000       (42,000 )     50,000       50,000       675              
                            $ 18,103,530     $ 21,929     $ 164     $ 3,774  

 

(a) Includes realized capital gain distributions from an affiliated fund, if any.

(b) Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

 

Futures Contracts

 

                      Value/  
                Notional     Unrealized  
    Number of     Expiration     Amount     Appreciation  
Description     Contracts       Date       (000)       (Depreciation)  
Long Contracts                                
Euro STOXX 50 Index     1       03/20/20     $ 36     $ (4,648 )

 

20 2 0 2 0  i S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI Israel ETF
February 29, 2020  

 

Derivative Financial Instruments Categorized by Risk Exposure

 

As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

    Equity  
    Contracts  
Liabilities — Derivative Financial Instruments        
Futures contracts        
Unrealized depreciation on futures contracts(a)   $ 4,648  

 

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

 

For the six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

    Equity  
    Contracts  
Net Realized Gain (Loss) from:        
Futures contracts   $ 4,059  
         
Net Change in Unrealized Appreciation (Depreciation) on:        
Futures contracts   $ (4,648 )

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments  

 

Futures contracts:      
Average notional value of contracts — long   $ 12,134  

 

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

 

Fair Value Measurements

 

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

 

The following table summarizes the value of the Fund's investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund's investments into major categories is disclosed in the Schedule of Investments above.

 

    Level 1     Level 2     Level 3     Total  
Investments                        
Assets                        
Common Stocks   $ 113,665,195     $     $     $ 113,665,195  
Money Market Funds     18,103,530                   18,103,530  
    $ 131,768,725     $     $     $ 131,768,725  
Derivative financial instruments(a)                                
Liabilities                                
Futures Contracts   $ (4,648 )   $     $     $ (4,648 )

 

(a) Shown at the unrealized appreciation (depreciation) on the contracts.

 

See notes to financial statements.

 

S c h e d u l e   o f   I n v e s t m e n t s 21

 

 

 

 

Schedule of Investments (unaudited) iShares® MSCI Russia ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
Common Stocks                
                 
Banks — 16.7%                
Sberbank of Russia PJSC     22,837,190     $ 79,304,861  
VTB Bank PJSC     10,048,995,016       6,479,508  
              85,784,369  
Capital Markets — 2.2%                
Moscow Exchange MICEX-RTS PJSC     7,764,390       11,447,853  
                 
Chemicals — 1.7%                
PhosAgro PJSC, GDR(a)     792,351       8,723,784  
                 
Electric Utilities — 2.6%                
Inter RAO UES PJSC     171,281,098       13,264,090  
                 
Food & Staples Retailing — 6.1%                
Magnit PJSC, GDR(a)     1,435,817       15,636,047  
X5 Retail Group NV, GDR(a)     518,337       15,970,488  
              31,606,535  
Metals & Mining — 19.4%                
Alrosa PJSC     11,791,040       12,526,226  
Magnitogorsk Iron & Steel Works PJSC     16,148,300       9,608,479  
MMC Norilsk Nickel PJSC     76,924       23,180,223  
Novolipetsk Steel PJSC     6,240,450       11,602,408  
Polymetal International PLC     980,209       14,952,563  
Polyus PJSC     127,139       16,013,460  
Severstal PJSC     990,825       12,010,804  
              99,894,163  
Oil, Gas & Consumable Fuels — 44.6%                
Gazprom PJSC     23,892,590       72,051,092  
LUKOIL PJSC     942,286       79,919,034  
Novatek PJSC, GDR(a)     161,601       23,157,423  
Rosneft Oil Co. PJSC, GDR(a)     1,323,009       8,004,204  
Rosneft Oil Co. PJSC     1,793,520       10,766,458  
Surgutneftegas PJSC     21,115,546       12,077,024  
Tatneft PJSC     2,315,248       23,138,699  
              229,113,934  

 

Security   Shares     Value  
             
Wireless Telecommunication Services — 3.7%                
Mobile TeleSystems PJSC, ADR     1,959,845     $ 19,010,496  
                 
Total Common Stocks — 97.0%                
(Cost: $467,432,561)             498,845,224  
                 
Preferred Stocks                
                 
Oil, Gas & Consumable Fuels — 2.8%                
Surgutneftegas PJSC, Preference Shares, NVS     21,539,300       10,503,614  
Transneft PJSC, Preference Shares, NVS     1,717       3,879,858  
              14,383,472  
Total Preferred Stocks — 2.8%                
(Cost: $15,744,641)             14,383,472  
                 
Short-Term Investments                
                 
Money Market Funds — 0.3%                
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52%(b)(c)     1,538,000       1,538,000  
                 
Total Short-Term Investments — 0.3%                
(Cost: $1,538,000)             1,538,000  
                 
Total Investments in Securities — 100.1%                
(Cost: $484,715,202)             514,766,696  
                 
Other Assets, Less Liabilities — (0.1)%             (446,716 )
                 
Net Assets — 100.0%           $ 514,319,980  

 

(a) This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933.

(b) Affiliate of the Fund.

(c) Annualized 7-day yield as of period-end.



Affiliates

 

Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940Act, were as follows:

 

                                        Change in  
    Shares           Shares                       Unrealized  
    Held at           Held at     Value at           Net Realized     Appreciation  
Affiliated Issuer   08/31/19     Net Activity     02/29/20     02/29/20     Income     Gain (Loss) (a)   (Depreciation)  
BlackRock Cash Funds: Treasury, SL Agency Shares     653,000       885,000       1,538,000     $ 1,538,000     $ 15,008     $     $  

 

(a) Includes realized capital gain distributions from an affiliated fund, if any.

 

Futures Contracts

 

                      Value/  
                Notional     Unrealized  
    Number of     Expiration     Amount     Appreciation  
Description     Contracts       Date       (000 )     (Depreciation)  
Long Contracts                                
MSCI Emerging Markets E-Mini     11       03/20/20     $ 555     $ (71,652 )

 

22 2 0 2 0  i S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI Russia ETF
February 29, 2020  

 

Derivative Financial Instruments Categorized by Risk Exposure

 

As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

    Equity  
    Contracts  
Liabilities — Derivative Financial Instruments        
Futures contracts        
Unrealized depreciation on futures contracts(a)   $ 71,652  

 

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

 

For the six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

    Equity  
    Contracts  
Net Realized Gain (Loss) from:        
Futures contracts   $ (49,554 )
         
Net Change in Unrealized Appreciation (Depreciation) on:        
Futures contracts   $ (71,652 )

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments  

 

Futures contracts:      
Average notional value of contracts — long   $ 202,247  

 

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

 

Fair Value Measurements

 

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

 

The following table summarizes the value of the Fund's investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund's investments into major categories is disclosed in the Schedule of Investments above.

 

    Level 1     Level 2     Level 3     Total  
Investments                        
Assets                        
Common Stocks   $ 498,845,224     $     $     $ 498,845,224  
Preferred Stocks     14,383,472                   14,383,472  
Money Market Funds     1,538,000                   1,538,000  
    $ 514,766,696     $     $     $ 514,766,696  
Derivative financial instruments(a)                                
Liabilities                                
Futures Contracts   $ (71,652 )   $     $     $ (71,652 )

 

(a) Shown at the unrealized appreciation (depreciation) on the contracts.

 

See notes to financial statements.

 

S c h e d u l e   o f   I n v e s t m e n t s 23

 

 

 

 

Schedule of Investments (unaudited) iShares® MSCI South Africa ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
Common Stocks                
                 
Banks — 11.7%                
Absa Group Ltd.     911,953     $ 7,669,414  
Capitec Bank Holdings Ltd.     60,209       4,975,438  
Nedbank Group Ltd.     481,267       5,402,953  
Standard Bank Group Ltd.     1,598,956       15,093,600  
              33,141,405  
Capital Markets — 2.2%                
Investec Ltd.     419,706       2,104,199  
Reinet Investments SCA     196,115       4,018,790  
              6,122,989  
Chemicals — 2.9%                
Sasol Ltd.     706,670       8,350,758  
                 
Diversified Financial Services — 10.0%                
FirstRand Ltd.     4,155,458       14,559,886  
PSG Group Ltd.     211,616       2,510,094  
Remgro Ltd.     672,258       6,837,319  
RMB Holdings Ltd.     1,017,250       4,530,307  
              28,437,606  
Diversified Telecommunication Services — 0.3%                
Telkom SA SOC Ltd.     546,117       905,364  
                 
Equity Real Estate Investment Trusts (REITs) — 3.1%        
Fortress REIT Ltd., Series A     1,806,492       1,854,549  
Growthpoint Properties Ltd.     3,961,347       4,431,854  
Redefine Properties Ltd.     7,594,149       2,621,252  
              8,907,655  
Food & Staples Retailing — 7.7%                
Bid Corp. Ltd.     424,422       7,503,702  
Clicks Group Ltd.     340,773       5,101,360  
Pick n Pay Stores Ltd.     551,020       1,934,866  
Shoprite Holdings Ltd.     627,908       4,475,164  
SPAR Group Ltd. (The)     269,036       2,804,685  
              21,819,777  
Food Products — 0.8%                
Tiger Brands Ltd.     232,600       2,238,691  
                 
Health Care Providers & Services — 1.0%                
Life Healthcare Group Holdings Ltd.     1,934,933       2,742,841  
                 
Industrial Conglomerates — 1.5%                
Bidvest Group Ltd. (The)     378,738       4,333,524  
                 
Insurance — 8.4%                
Discovery Ltd.     535,586       3,278,577  
Liberty Holdings Ltd.     215,497       1,283,681  
Momentum Metropolitan Holdings     1,394,802       1,578,201  
Old Mutual Ltd.     6,045,201       6,017,726  
Rand Merchant Investment Holdings Ltd.     1,155,206       1,826,270  
Sanlam Ltd.     2,344,236       9,683,022  
              23,667,477  
Internet & Direct Marketing Retail — 22.6%                
Naspers Ltd., Class N     423,131       64,040,271  
                 
Media — 1.2%                
MultiChoice Group Ltd.(a)     595,951       3,425,350  
                 
Metals & Mining — 13.8%                
Anglo American Platinum Ltd.     69,912       4,654,460  

 

Security   Shares     Value  
             
Metals & Mining (continued)                
AngloGold Ashanti Ltd.     521,599     $ 9,209,837  
Gold Fields Ltd.     1,064,989       6,243,097  
Impala Platinum Holdings Ltd.(a)     1,001,404       7,934,718  
Kumba Iron Ore Ltd.     95,704       1,707,481  
Northam Platinum Ltd.(a)     476,942       3,371,625  
Sibanye Stillwater Ltd.(a)     2,996,759       5,994,852  
              39,116,070  
Multiline Retail — 1.1%                
Woolworths Holdings Ltd.     1,350,300       3,068,571  
                 
Oil, Gas & Consumable Fuels — 0.9%                
Exxaro Resources Ltd.     354,403       2,523,163  
                 
Pharmaceuticals — 1.2%                
Aspen Pharmacare Holdings Ltd.(a)     527,021       3,350,100  
                 
Real Estate Management & Development — 1.3%                
NEPI Rockcastle PLC     522,558       3,786,772  
                 
Specialty Retail — 2.6%                
Foschini Group Ltd. (The)     332,364       2,635,207  
Mr. Price Group Ltd.     347,465       3,334,507  
Pepkor Holdings Ltd.(b)     1,460,426       1,425,938  
              7,395,652  
Wireless Telecommunication Services — 5.5%                
MTN Group Ltd.(c)     2,114,640       9,906,809  
Vodacom Group Ltd.     826,927       5,764,809  
              15,671,618  
Total Common Stocks — 99.8%                
(Cost: $435,898,840)             283,045,654  
                 
Short-Term Investments                
                 
Money Market Funds — 4.0%                
BlackRock Cash Funds: Institutional, SL Agency Shares,                
1.74%(d)(e)(f).     11,152,935       11,160,742  
BlackRock Cash Funds: Treasury, SL Agency Shares,                
1.52%(d)(e)     65,000       65,000  
              11,225,742  
Total Short-Term Investments — 4.0%                
(Cost: $11,222,253)             11,225,742  
                 
Total Investments in Securities — 103.8%                
(Cost: $447,121,093)             294,271,396  
                 
Other Assets, Less Liabilities — (3.8)%.             (10,704,150 )
                 
Net Assets — 100.0%           $ 283,567,246  

 

(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) All or a portion of this security is on loan.

(d) Affiliate of the Fund.

(e) Annualized 7-day yield as of period-end.

(f) All or a portion of this security was purchased with cash collateral received from loaned securities.



 

24 2 0 2 0  i S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI South Africa ETF
February 29, 2020  

 

Affiliates

 

Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940Act, were as follows:

 

                                        Change in  
    Shares           Shares                       Unrealized  
    Held at           Held at     Value at           Net Realized     Appreciation  
Affiliated Issuer   08/31/19     Net Activity     02/29/20     02/29/20     Income     Gain (Loss) (a)   (Depreciation)  
BlackRock Cash Funds: Institutional, SL Agency Shares     14,416,634       (3,263,699 )     11,152,935     $ 11,160,742     $ 38,462 (b)   $ 377     $ 1,904  
BlackRock Cash Funds: Treasury, SL Agency Shares     242,000       (177,000 )     65,000       65,000       3,448              
                            $ 11,225,742     $ 41,910     $ 377     $ 1,904  

 

(a) Includes realized capital gain distributions from an affiliated fund, if any.

(b) Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

 

Futures Contracts

 

                      Value/  
                Notional     Unrealized  
    Number of     Expiration     Amount     Appreciation  
Description     Contracts       Date       (000 )     (Depreciation)  
Long Contracts                                
FTSE/JSE Top 40 Index     7       03/19/20     $ 203     $ (225 )

 

Derivative Financial Instruments Categorized by Risk Exposure

 

As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

    Equity  
    Contracts  
Liabilities — Derivative Financial Instruments        
Futures contracts        
Unrealized depreciation on futures contracts(a)   $ 225  

 

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

 

For the six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

    Equity  
    Contracts  
Net Realized Gain (Loss) from:        
Futures contracts   $ 27,002  
Net Change in Unrealized Appreciation (Depreciation) on:        
Futures contracts   $ 2,032  

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments  

 

Futures contracts:      
Average notional value of contracts — long   $ 338,329  

 

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

 

Fair Value Measurements

 

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

 

S c h e d u l e   o f   I n v e s t m e n t s 25

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI South Africa ETF
February 29, 2020  

 

Fair Value Measurements (continued)

 

The following table summarizes the value of the Fund's investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund's investments into major categories is disclosed in the Schedule of Investments above.

 

    Level 1     Level 2     Level 3     Total  
Investments                        
Assets                        
Common Stocks   $ 283,045,654     $     $     $ 283,045,654  
Money Market Funds     11,225,742                   11,225,742  
    $ 294,271,396     $     $     $ 294,271,396  
Derivative financial instruments(a)                                
Liabilities                                
Futures Contracts   $ (225 )   $     $     $ (225 )

 

(a) Shown at the unrealized appreciation (depreciation) on the contracts.

 

See notes to financial statements.

 

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Schedule of Investments (unaudited) iShares® MSCI Turkey ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
Common Stocks                
                 
Aerospace & Defense — 4.7%                
Aselsan Elektronik Sanayi Ve Ticaret AS(a)     2,824,199     $ 12,427,967  
                 
Airlines — 4.4%                
Pegasus Hava Tasimaciligi AS(b)     360,690       3,116,736  
Turk Hava Yollari AO(a)(b)     4,582,255       8,615,673  
              11,732,409  
Auto Components — 0.4%                
Kordsa Teknik Tekstil AS     417,456       930,538  
                 
Automobiles — 2.9%                
Ford Otomotiv Sanayi AS     613,926       7,662,716  
                 
Banks — 23.8%                
Akbank T.A.S.(b)     21,075,773       22,798,292  
Turkiye Garanti Bankasi AS(b)     17,109,400       26,009,409  
Turkiye Halk Bankasi AS(a)(b)     5,627,943       5,385,462  
Turkiye Is Bankasi AS, Class C(b)     8,737,584       7,983,615  
Turkiye Sinai Kalkinma Bankasi AS(b)     4,362,669       767,922  
              62,944,700  
Beverages — 4.4%                
Anadolu Efes Biracilik Ve Malt Sanayii AS     1,835,943       6,445,668  
Coca-Cola Icecek AS     717,639       5,179,104  
              11,624,772  
Building Products — 0.3%                
Trakya Cam Sanayii AS     1,547,392       827,026  
                 
Chemicals — 3.4%                
Petkim Petrokimya Holding AS(a)(b)     9,517,651       5,543,745  
Sasa Polyester Sanayi AS     1,873,555       2,614,298  
Soda Sanayii AS     942,193       872,952  
              9,030,995  
Construction & Engineering — 1.7%                
Tekfen Holding AS(a)     1,849,345       4,394,571  
                 
Containers & Packaging — 0.3%                
Anadolu Cam Sanayii AS     1,432,784       864,359  
                 
Diversified Financial Services — 3.3%                
Haci Omer Sabanci Holding AS     6,381,676       8,690,333  
                 
Electric Utilities — 1.2%                
Enerjisa Enerji AS(c)     2,536,057       3,161,321  
                 
Equity Real Estate Investment Trusts (REITs) — 1.4%          
Emlak Konut Gayrimenkul Yatirim Ortakligi AS     16,835,987       3,744,773  
                 
Food & Staples Retailing — 11.0%                
BIM Birlesik Magazalar AS     3,115,233       23,947,801  
Migros Ticaret AS(a)(b)     799,953       2,785,451  
Sok Marketler Ticaret AS(a)(b)     1,814,309       2,467,756  
              29,201,008  
Food Products — 1.8%                
Ulker Biskuvi Sanayi AS(b)     1,439,329       4,716,959  
                 
Gas Utilities — 0.3%                
Aygaz AS     460,095       839,314  
                 
Health Care Providers & Services — 1.7%                
MLP Saglik Hizmetleri AS(a)(b)(c)     999,458       2,381,394  
Selcuk Ecza Deposu Ticaret ve Sanayi AS     2,018,675       2,122,286  
              4,503,680  

 

Security   Shares     Value  
             
Household Durables — 2.1%                
Arcelik AS(b)     1,236,677     $ 3,676,835  
Vestel Elektronik Sanayi ve Ticaret AS(a)(b)     874,626       1,959,396  
              5,636,231  
Industrial Conglomerates — 6.9%                
Dogan Sirketler Grubu Holding AS     11,070,477       3,046,961  
Enka Insaat ve Sanayi AS     2       2  
KOC Holding AS     5,497,536       15,131,036  
              18,177,999  
Machinery — 0.3%                
Otokar Otomotiv Ve Savunma Sanayi AS     34,963       844,807  
                 
Metals & Mining — 9.2%                
Eregli Demir ve Celik Fabrikalari TAS(a)     9,408,938       12,421,289  
Kardemir Karabuk Demir Celik Sanayi ve Ticaret AS, Class D(a)     7,812,108       3,250,227  
Koza Altin Isletmeleri AS(b)     426,393       4,980,868  
Koza Anadolu Metal Madencilik Isletmeleri AS(a)(b)     2,012,989       3,639,921  
              24,292,305  
Oil, Gas & Consumable Fuels — 5.5%                
Tupras Turkiye Petrol Rafinerileri AS     899,378       14,578,868  
                 
Textiles, Apparel & Luxury Goods — 2.2%                
Aksa Akrilik Kimya Sanayii AS     1,889,091       2,388,098  
Mavi Giyim Sanayi Ve Ticaret AS, Class B(b)(c)     385,296       3,298,529  
              5,686,627  
Transportation Infrastructure — 1.9%                
TAV Havalimanlari Holding AS     1,578,180       5,141,696  
                 
Wireless Telecommunication Services — 4.8%        
Turkcell Iletisim Hizmetleri AS     5,756,166       12,747,984  
                 
Total Common Stocks — 99.9%                
(Cost: $429,731,176)             264,403,958  
                 
Short-Term Investments                
                 
Money Market Funds — 7.0%                
BlackRock Cash Funds: Institutional, SL Agency Shares, 1.74%(d)(e)(f)     18,420,759       18,433,653  
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52%(d)(e)     125,000       125,000  
              18,558,653  
Total Short-Term Investments — 7.0%                
(Cost: $18,549,801)             18,558,653  
                 
Total Investments in Securities — 106.9%                
(Cost: $448,280,977)             282,962,611  
                 
Other Assets, Less Liabilities — (6.9)%             (18,305,561 )
                 
Net Assets — 100.0%           $ 264,657,050  
                 

(a) All or a portion of this security is on loan.
(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) Affiliate of the Fund.
(e) Annualized 7-day yield as of period-end.
(f) All or a portion of this security was purchased with cash collateral received from loaned securities.



S c h e d u l e   o f   I n v e s t m e n t s 27

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI Turkey ETF
February 29, 2020  

 

Affiliates

 

Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940Act, were as follows:

 

                                        Change in  
    Shares           Shares                       Unrealized  
    Held at           Held at     Value at           Net Realized     Appreciation  
Affiliated Issuer   08/31/19     Net Activity     02/29/20     02/29/20     Income     Gain (Loss) (a)   (Depreciation)  
BlackRock Cash Funds: Institutional, SL Agency Shares     36,992,086       (18,571,327 )     18,420,759     $ 18,433,653     $ 659,737 (b)   $ (629 )   $ 3,912  
BlackRock Cash Funds: Treasury, SL Agency Shares           125,000       125,000       125,000       2,559              
                            $ 18,558,653     $ 662,296     $ (629 )   $ 3,912  

 

(a) Includes realized capital gain distributions from an affiliated fund, if any.
(b) Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

 

Futures Contracts

 

                      Value/  
                Notional     Unrealized  
    Number of     Expiration     Amount     Appreciation  
Description     Contracts       Date       (000)     (Depreciation)  
Long Contracts                                
MSCI Emerging Markets E-Mini     5       03/20/20     $ 252     $ (25,861 )

 

Derivative Financial Instruments Categorized by Risk Exposure

 

As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

    Equity  
    Contracts  
Liabilities — Derivative Financial Instruments        
Futures contracts        
Unrealized depreciation on futures contracts(a)   $ 25,861  

 

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

 

For the six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

    Equity  
    Contracts  
Net Realized Gain (Loss) from:        
Futures contracts   $ 19,428  
         
Net Change in Unrealized Appreciation (Depreciation) on:        
Futures contracts   $ (25,861 )

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:      
Average notional value of contracts — long   $ 291,667  

 

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

 

Fair Value Measurements

 

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

 

28 2 0 2 0  i S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI Turkey ETF
February 29, 2020  

 

Fair Value Measurements (continued)

 

The following table summarizes the value of the Fund's investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund's investments into major categories is disclosed in the Schedule of Investments above.

 

    Level 1     Level 2     Level 3     Total  
Investments                        
Assets                        
Common Stocks   $ 264,403,958     $     $     $ 264,403,958  
Money Market Funds     18,558,653                   18,558,653  
    $ 282,962,611     $     $     $ 282,962,611  
Derivative financial instruments(a)                                
Liabilities                                
Futures Contracts   $ (25,861 )   $     $     $ (25,861 )

 

(a) Shown at the unrealized appreciation (depreciation) on the contracts.

 

See notes to financial statements.

 

S c h e d u l e   o f   I n v e s t m e n t s 29

 

 

 

 

Schedule of Investments (unaudited) iShares® MSCI USA Equal Weighted ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
Common Stocks                
                 
Aerospace & Defense — 2.2%                
Arconic Inc.     17,826     $ 523,193  
Boeing Co. (The)     1,745       480,067  
General Dynamics Corp.     3,144       502,065  
HEICO Corp.     1,881       202,866  
HEICO Corp., Class A     3,369       297,584  
Huntington Ingalls Industries Inc.     2,490       511,770  
L3Harris Technologies Inc.     2,586       511,330  
Lockheed Martin Corp.     1,358       502,283  
Northrop Grumman Corp.     1,588       522,198  
Raytheon Co.     2,628       495,536  
Spirit AeroSystems Holdings Inc., Class A     8,881       469,272  
Teledyne Technologies Inc.(a)     1,522       513,401  
Textron Inc.     12,416       504,089  
TransDigm Group Inc.     922       514,301  
United Technologies Corp.     3,910       510,607  
              7,060,562  
Air Freight & Logistics — 0.8%                
CH Robinson Worldwide Inc.     8,164       562,500  
Expeditors International of Washington Inc.     7,947       559,628  
FedEx Corp.     3,730       526,564  
United Parcel Service Inc., Class B     5,558       502,943  
XPO Logistics Inc.(a)     6,032       446,187  
              2,597,822  
Airlines — 0.6%                
American Airlines Group Inc.     20,659       393,554  
Delta Air Lines Inc.     10,063       464,206  
Southwest Airlines Co.     10,269       474,325  
United Airlines Holdings Inc.(a)(b)     7,371       453,980  
              1,786,065  
Auto Components — 0.7%                
Aptiv PLC     6,720       524,899  
Autoliv Inc.     7,645       510,151  
BorgWarner Inc.     17,224       544,278  
Lear Corp.     4,793       532,982  
              2,112,310  
Automobiles — 0.6%                
Ford Motor Co.     73,385       510,760  
General Motors Co.     17,189       524,264  
Harley-Davidson Inc.     17,110       521,342  
Tesla Inc.(a)     689       460,245  
              2,016,611  
Banks — 3.1%                
Bank of America Corp.     17,259       491,882  
Citigroup Inc.     7,624       483,819  
Citizens Financial Group Inc.     15,582       493,794  
Comerica Inc.     9,546       502,501  
East West Bancorp. Inc.     12,625       489,093  
Fifth Third Bancorp.     20,228       493,563  
First Republic Bank/CA     5,064       509,286  
Huntington Bancshares Inc./OH     42,522       521,745  
JPMorgan Chase & Co.     4,361       506,356  
KeyCorp     30,175       493,361  
M&T Bank Corp.     3,546       497,787  
People's United Financial Inc.     36,898       516,203  
PNC Financial Services Group Inc. (The)     3,907       493,845  
Regions Financial Corp.     36,265       490,303  
Signature Bank/New York NY     4,098       512,660  

 

Security   Shares     Value  
             
Banks (continued)                
SVB Financial Group(a)     2,265     $ 471,482  
Truist Financial Corp.     10,951       505,279  
U.S. Bancorp.     10,869       504,756  
Wells Fargo & Co.     12,587       514,179  
Zions Bancorp. N.A.     13,118       524,064  
              10,015,958  
Beverages — 1.0%                
Brown-Forman Corp., Class B, NVS     8,354       513,019  
Coca-Cola Co. (The)     9,936       531,477  
Constellation Brands Inc., Class A     2,902       500,247  
Molson Coors Beverage Co., Class B.     10,863       538,913  
Monster Beverage Corp.(a)     8,498       530,360  
PepsiCo Inc.     4,062       536,306  
              3,150,322  
Biotechnology — 2.5%                
AbbVie Inc.     6,319       541,601  
Alexion Pharmaceuticals Inc.(a)     5,790       544,434  
Alnylam Pharmaceuticals Inc.(a)     4,597       540,883  
Amgen Inc.     2,668       532,880  
Biogen Inc.(a)     1,755       541,224  
BioMarin Pharmaceutical Inc.(a)     6,650       600,961  
Exact Sciences Corp.(a)     5,939       480,762  
Gilead Sciences Inc.     8,827       612,241  
Incyte Corp.(a)     7,459       562,483  
Ionis Pharmaceuticals Inc.(a)     9,607       487,843  
Neurocrine Biosciences Inc.(a)     5,647       534,771  
Regeneron Pharmaceuticals Inc.(a)(b)     1,487       661,076  
Sarepta Therapeutics Inc.(a)     4,817       551,402  
Seattle Genetics Inc.(a)(b)     4,930       561,330  
Vertex Pharmaceuticals Inc.(a)     2,405       538,792  
              8,292,683  
Building Products — 1.1%                
Allegion PLC     4,402       506,186  
AO Smith Corp.     13,449       531,908  
Fortune Brands Home & Security Inc.     8,146       503,015  
Johnson Controls International PLC     14,086       515,125  
Lennox International Inc.     2,404       548,425  
Masco Corp.     12,985       536,540  
Owens Corning     9,390       530,441  
              3,671,640  
Capital Markets — 4.3%                
Ameriprise Financial Inc.     3,336       471,377  
Bank of New York Mellon Corp. (The)     13,060       521,094  
BlackRock Inc.(c)     1,048       485,234  
Blackstone Group Inc. (The), Class A     9,545       513,903  
Cboe Global Markets Inc.     4,788       545,832  
Charles Schwab Corp. (The)     12,657       515,773  
CME Group Inc.     2,769       550,533  
E*TRADE Financial Corp.     13,507       618,350  
Eaton Vance Corp., NVS     11,764       485,383  
FactSet Research Systems Inc.     1,953       519,478  
Franklin Resources Inc.     22,706       494,083  
Goldman Sachs Group Inc. (The)     2,536       509,153  
Intercontinental Exchange Inc.     6,148       548,525  
Invesco Ltd.     33,569       483,394  
KKR & Co. Inc., Class A, NVS     17,619       503,903  
MarketAxess Holdings Inc.     1,704       552,658  
Moody's Corp.     2,107       505,743  
Morgan Stanley     10,653       479,705  


30 2 0 2 0  i S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI USA Equal Weighted ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
Capital Markets (continued)                
MSCI Inc.     1,808     $ 534,155  
Nasdaq Inc.     5,114       524,441  
Northern Trust Corp.     5,866       514,800  
Raymond James Financial Inc.     5,949       497,515  
S&P Global Inc.     1,928       512,674  
SEI Investments Co.     8,597       470,342  
State Street Corp.     7,694       524,038  
T Rowe Price Group Inc.     4,293       506,617  
TD Ameritrade Holding Corp.     12,071       509,758  
              13,898,461  
Chemicals — 3.0%                
Air Products & Chemicals Inc.     2,313       507,958  
Albemarle Corp.     6,668       545,776  
Axalta Coating Systems Ltd.(a)     19,835       494,288  
Celanese Corp.     5,489       514,539  
CF Industries Holdings Inc.     15,500       571,330  
Corteva Inc.(a)     18,837       512,366  
Dow Inc.(a)     12,390       500,680  
DuPont de Nemours Inc.     11,068       474,817  
Eastman Chemical Co.     8,136       500,445  
Ecolab Inc.     2,848       513,922  
FMC Corp.     5,591       520,522  
International Flavors & Fragrances Inc.     4,387       525,475  
Linde PLC     2,646       505,412  
LyondellBasell Industries NV, Class A     7,273       519,728  
Mosaic Co. (The)     32,410       551,942  
PPG Industries Inc.     4,957       517,759  
RPM International Inc.     7,961       510,380  
Sherwin-Williams Co. (The)     1,017       525,535  
Westlake Chemical Corp.     9,817       548,476  
              9,861,350  
Commercial Services & Supplies — 1.0%                
Cintas Corp.     1,955       521,477  
Copart Inc.(a)     5,775       487,872  
Republic Services Inc.     5,899       532,444  
Rollins Inc.     15,012       562,049  
Waste Connections Inc.     5,651       545,265  
Waste Management Inc.     4,686       519,255  
              3,168,362  
Communications Equipment — 0.8%                
Arista Networks Inc.(a)     2,620       505,974  
Cisco Systems Inc.     12,669       505,873  
F5 Networks Inc.(a)     4,632       555,609  
Juniper Networks Inc.     24,573       521,439  
Motorola Solutions Inc.     3,199       530,010  
              2,618,905  
Construction & Engineering — 0.2%                
Jacobs Engineering Group Inc.     5,882       543,144  
                 
Construction Materials — 0.3%                
Martin Marietta Materials Inc.     2,300       523,319  
Vulcan Materials Co.     4,312       518,561  
              1,041,880  
Consumer Finance — 0.8%                
Ally Financial Inc.     18,455       462,667  
American Express Co.     4,362       479,515  
Capital One Financial Corp.     5,741       506,700  
Discover Financial Services     7,850       514,803  

 

Security   Shares     Value  
             
Consumer Finance (continued)                
Synchrony Financial     17,778     $ 517,340  
              2,481,025  
Containers & Packaging — 1.3%                
Amcor PLC(a)     57,932       539,926  
Avery Dennison Corp.     4,350       498,032  
Ball Corp.     7,579       534,016  
Crown Holdings Inc.(a)(b)     7,417       522,898  
International Paper Co.     13,682       505,687  
Packaging Corp. of America     5,955       539,642  
Sealed Air Corp.     17,060       517,089  
Westrock Co.     14,455       480,629  
              4,137,919  
Distributors — 0.3%                
Genuine Parts Co.     6,113       533,298  
LKQ Corp.(a)     17,789       526,199  
              1,059,497  
Diversified Financial Services — 0.6%                
Berkshire Hathaway Inc., Class B(a)(b)     2,599       536,277  
Equitable Holdings Inc.     22,145       473,903  
Jefferies Financial Group Inc.     25,266       497,993  
Voya Financial Inc.     9,520       501,133  
              2,009,306  
Diversified Telecommunication Services — 0.7%                
AT&T Inc.     15,460       544,501  
CenturyLink Inc.     44,339       535,172  
Verizon Communications Inc.     10,214       553,190  
Zayo Group Holdings Inc.(a)     16,914       591,821  
              2,224,684  
Electric Utilities — 2.5%                
Alliant Energy Corp.     9,831       512,392  
American Electric Power Co. Inc.     5,669       506,015  
Duke Energy Corp.     5,798       531,677  
Edison International     7,670       515,347  
Entergy Corp.     4,388       513,001  
Evergy Inc.     8,006       523,192  
Eversource Energy     6,239       539,424  
Exelon Corp.     11,740       506,111  
FirstEnergy Corp.     11,316       503,901  
NextEra Energy Inc.     2,097       530,038  
NRG Energy Inc.     14,806       491,707  
OGE Energy Corp.     12,847       489,471  
Pinnacle West Capital Corp.     5,810       519,937  
PPL Corp.     16,471       494,295  
Southern Co. (The)     8,523       514,448  
Xcel Energy Inc.     8,312       518,004  
              8,208,960  
Electrical Equipment — 1.0%                
Acuity Brands Inc.     5,072       521,706  
AMETEK Inc.     5,866       504,476  
Eaton Corp. PLC     5,662       513,657  
Emerson Electric Co.     8,279       530,767  
Rockwell Automation Inc.     2,976       546,096  
Sensata Technologies Holding PLC(a)     12,442       507,633  
              3,124,335  
Electronic Equipment, Instruments & Components — 1.9%        
Amphenol Corp., Class A     5,834       534,861  
Arrow Electronics Inc.(a)(b)     7,525       504,627  
CDW Corp./DE     4,386       500,969  


S c h e d u l e   o f   I n v e s t m e n t s 31

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI USA Equal Weighted ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
                 
Electronic Equipment, Instruments & Components (continued)
Cognex Corp.     11,611     $ 517,154  
Corning Inc.     21,147       504,568  
Flex Ltd.(a)(b)     44,775       497,450  
FLIR Systems Inc.     10,454       443,981  
IPG Photonics Corp.(a)     4,355       555,872  
Keysight Technologies Inc. (a)     6,060       574,246  
TE Connectivity Ltd.     6,431       532,937  
Trimble Inc.(a)     12,965       511,858  
Zebra Technologies Corp., Class A(a)     2,499       527,214  
              6,205,737  
Energy Equipment & Services — 0.7%                
Baker Hughes Co.     28,287       455,138  
Halliburton Co.     27,058       458,904  
National Oilwell Varco Inc.     25,786       482,456  
Schlumberger Ltd.     17,577       476,161  
TechnipFMC PLC     34,529       512,410  
              2,385,069  
Entertainment — 1.3%                
Activision Blizzard Inc.     9,280       539,446  
Electronic Arts Inc.(a)     5,404       547,804  
Liberty Media Corp.-Liberty Formula One, Class C, NVS(a)     12,723       496,960  
Live Nation Entertainment Inc.(a)     7,979       484,884  
Netflix Inc.(a)     1,525       562,771  
Roku Inc.(a)     4,652       528,793  
Take-Two Interactive Software Inc.(a)     5,215       560,508  
Walt Disney Co. (The)     4,251       500,130  
              4,221,296  
Equity Real Estate Investment Trusts (REITs) — 6.2%    
Alexandria Real Estate Equities Inc.     3,402       516,696  
American Tower Corp.     2,339       530,485  
AvalonBay Communities Inc.     2,593       520,130  
Boston Properties Inc.     4,010       517,049  
Camden Property Trust     4,983       528,098  
Crown Castle International Corp.     3,559       509,969  
Digital Realty Trust Inc.     4,441       533,409  
Duke Realty Corp.     15,355       498,577  
Equinix Inc.     919       526,403  
Equity LifeStyle Properties Inc.     7,811       533,726  
Equity Residential     6,856       514,886  
Essex Property Trust Inc.     1,828       517,982  
Extra Space Storage Inc.     5,125       514,345  
Federal Realty Investment Trust     4,662       542,377  
Healthpeak Properties Inc.     15,845       501,336  
Host Hotels & Resorts Inc.     35,103       508,291  
Invitation Homes Inc.     18,138       520,379  
Iron Mountain Inc.     17,366       528,100  
Kimco Realty Corp.     31,016       538,128  
Medical Properties Trust Inc.     24,512       517,939  
Mid-America Apartment Communities Inc.     4,048       523,245  
National Retail Properties Inc.     10,331       525,331  
Omega Healthcare Investors Inc.     13,289       526,244  
Prologis Inc.     6,180       520,850  
Public Storage     2,552       533,674  
Realty Income Corp.     7,368       533,370  
Regency Centers Corp.     9,207       528,850  
SBA Communications Corp.     2,028       537,603  
Simon Property Group Inc.     4,250       523,090  
SL Green Realty Corp.     6,176       484,445  
Sun Communities Inc.     3,502       535,386  

 

Security   Shares     Value  
             
Equity Real Estate Investment Trusts (REITs) (continued)  
UDR Inc.     11,729     $ 527,570  
Ventas Inc.     9,893       531,947  
VEREIT Inc.     59,267       513,252  
VICI Properties Inc.     21,215       531,648  
Vornado Realty Trust     8,729       467,700  
Welltower Inc.     6,584       492,615  
Weyerhaeuser Co.     19,637       510,169  
WP Carey Inc.     6,886       533,045  
              20,298,339  
Food & Staples Retailing — 0.8%                
Costco Wholesale Corp.     1,837       516,454  
Kroger Co. (The)     19,908       560,012  
Sysco Corp.     7,699       513,138  
Walgreens Boots Alliance Inc.     11,405       521,893  
Walmart Inc.     4,944       532,370  
              2,643,867  
Food Products — 2.4%                
Archer-Daniels-Midland Co.     13,305       500,933  
Bunge Ltd.     11,035       518,093  
Campbell Soup Co.     12,271       553,668  
Conagra Brands Inc.     19,279       514,557  
General Mills Inc.     11,047       541,303  
Hershey Co. (The)     3,695       532,043  
Hormel Foods Corp.     12,256       509,850  
Ingredion Inc.     6,140       511,462  
JM Smucker Co. (The)     5,410       557,176  
Kellogg Co.     8,808       532,620  
Kraft Heinz Co. (The)     21,642       536,072  
Lamb Weston Holdings Inc.     6,170       536,111  
McCormick & Co. Inc./MD, NVS     3,587       524,384  
Mondelez International Inc., Class A     9,914       523,459  
Tyson Foods Inc., Class A     7,380       500,585  
              7,892,316  
Gas Utilities — 0.3%                
Atmos Energy Corp.     4,906       506,545  
UGI Corp.     14,332       516,525  
              1,023,070  
Health Care Equipment & Supplies — 3.7%                
Abbott Laboratories     6,655       512,635  
ABIOMED Inc.(a)     3,500       525,910  
Align Technology Inc.(a)     2,186       477,313  
Baxter International Inc.     6,414       535,377  
Becton Dickinson and Co.     2,310       549,364  
Boston Scientific Corp.(a)     14,029       524,544  
Cooper Companies Inc. (The)     1,660       538,786  
Danaher Corp.     3,607       521,500  
Dentsply Sirona Inc.     10,159       500,229  
DexCom Inc.(a)     1,998       551,448  
Edwards Lifesciences Corp.(a)     2,577       527,873  
Hologic Inc.(a)     11,243       529,770  
IDEXX Laboratories Inc.(a)     2,063       525,054  
Insulet Corp.(a)(b)     2,786       529,256  
Intuitive Surgical Inc.(a)     978       522,213  
Medtronic PLC     5,256       529,122  
ResMed Inc.     3,384       537,921  
Steris PLC     3,522       558,660  
Stryker Corp.     2,665       507,922  
Teleflex Inc.     1,525       510,906  
Varian Medical Systems Inc.(a)     4,054       498,520  


32 2 0 2 0  i S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI USA Equal Weighted ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
Health Care Equipment & Supplies (continued)                
West Pharmaceutical Services Inc.     3,415     $ 514,162  
Zimmer Biomet Holdings Inc.     3,714       505,661  
              12,034,146  
Health Care Providers & Services — 2.4%                
AmerisourceBergen Corp.     6,272       528,855  
Anthem Inc.     1,956       502,868  
Cardinal Health Inc.     10,023       522,399  
Centene Corp.(a)     8,866       470,075  
Cigna Corp.(a)     2,665       487,535  
CVS Health Corp.     8,215       486,164  
DaVita Inc.(a)(b)     6,926       537,596  
HCA Healthcare Inc.     3,990       506,770  
Henry Schein Inc.(a)(b)     8,104       493,858  
Humana Inc.     1,590       508,291  
Laboratory Corp. of America Holdings(a)     3,098       544,288  
McKesson Corp.     3,528       493,426  
Quest Diagnostics Inc.     5,253       557,133  
UnitedHealth Group Inc.     1,958       499,212  
Universal Health Services Inc., Class B     4,253       526,266  
              7,664,736  
Health Care Technology — 0.3%                
Cerner Corp.     7,704       533,656  
Veeva Systems Inc., Class A(a)     3,651       518,333  
              1,051,989  
Hotels, Restaurants & Leisure — 2.4%                
Aramark     13,836       480,663  
Carnival Corp.     13,781       461,112  
Chipotle Mexican Grill Inc.(a)     638       493,544  
Darden Restaurants Inc.     4,909       478,628  
Domino's Pizza Inc.     2,000       678,920  
Hilton Worldwide Holdings Inc.     5,284       513,605  
Las Vegas Sands Corp.     8,678       506,014  
Marriott International Inc./MD, Class A     4,081       506,044  
McDonald's Corp.     2,736       531,249  
MGM Resorts International     18,472       453,672  
Norwegian Cruise Line Holdings Ltd.(a)     11,443       426,366  
Royal Caribbean Cruises Ltd.     5,309       426,897  
Starbucks Corp.     6,629       519,912  
Vail Resorts Inc.     2,373       504,524  
Wynn Resorts Ltd.     4,432       478,567  
Yum! Brands Inc.     5,686       507,476  
              7,967,193  
Household Durables — 1.4%                
DR Horton Inc.     9,566       509,581  
Garmin Ltd.     6,090       538,295  
Leggett & Platt Inc.     13,127       520,617  
Lennar Corp., Class A     8,435       508,968  
Mohawk Industries Inc.(a)     4,501       545,296  
Newell Brands Inc.     29,544       455,864  
NVR Inc.(a)     149       546,410  
PulteGroup Inc.     12,679       509,695  
Whirlpool Corp.     3,994       510,673  
              4,645,399  
Household Products — 0.8%                
Church & Dwight Co. Inc.     7,767       539,962  
Clorox Co. (The)     3,589       572,158  
Colgate-Palmolive Co.     7,775       525,357  
Kimberly-Clark Corp.     4,112       539,453  

 

Security   Shares     Value  
             
Household Products (continued)                
Procter & Gamble Co. (The)     4,730     $ 535,578  
              2,712,508  
Independent Power and Renewable Electricity Producers — 0.3%
AES Corp./VA     28,126       470,548  
Vistra Energy Corp.     25,320       486,904  
              957,452  
Industrial Conglomerates — 0.8%                
3M Co.     3,723       555,621  
General Electric Co.     46,391       504,734  
Honeywell International Inc.     3,297       534,675  
Roper Technologies Inc.     1,519       534,232  
Trane Technologies PLC     4,080       526,483  
              2,655,745  
Insurance — 4.9%                
Aflac Inc.     11,401       488,533  
Alleghany Corp.(a)     708       475,953  
Allstate Corp. (The)     4,758       500,779  
American Financial Group Inc./OH     5,257       485,852  
American International Group Inc.     12,069       508,829  
Aon PLC     2,514       522,912  
Arch Capital Group Ltd.(a)     12,351       499,351  
Arthur J Gallagher & Co.     5,451       531,418  
Assurant Inc.     4,171       502,981  
Athene Holding Ltd., Class A(a)     11,830       487,987  
Brown & Brown Inc.     12,294       528,765  
Chubb Ltd.     3,618       524,719  
Cincinnati Financial Corp.     5,195       484,382  
Erie Indemnity Co., Class A, NVS     3,649       521,515  
Everest Re Group Ltd.     2,041       505,923  
Fidelity National Financial Inc.     13,298       515,430  
Globe Life Inc.     5,361       496,750  
Hartford Financial Services Group Inc. (The)     10,105       504,745  
Lincoln National Corp.     9,830       446,184  
Loews Corp.     11,015       502,614  
Markel Corp.(a)     446       526,994  
Marsh & McLennan Companies Inc.     4,952       517,781  
MetLife Inc.     11,412       487,521  
Principal Financial Group Inc.     10,704       475,151  
Progressive Corp. (The)     7,092       518,851  
Prudential Financial Inc.     6,348       478,957  
Reinsurance Group of America Inc.     3,883       473,842  
RenaissanceRe Holdings Ltd.     2,980       507,792  
Travelers Companies Inc. (The)     4,353       521,533  
Unum Group     19,962       465,314  
Willis Towers Watson PLC     2,781       526,304  
WR Berkley Corp.     7,453       500,394  
              16,036,056  
Interactive Media & Services — 1.4%                
Alphabet Inc., Class A(a)     192       257,136  
Alphabet Inc., Class C, NVS(a)     198       265,187  
Facebook Inc., Class A(a)     2,716       522,749  
IAC/InterActiveCorp.(a)     2,495       508,830  
Match Group Inc.(a)(b)     7,712       501,280  
Pinterest Inc., Class A(a)     25,988       506,766  
Snap Inc., Class A, NVS(a)     34,449       488,142  
TripAdvisor Inc.     20,488       480,444  
Twitter Inc.(a)     15,541       515,961  
Zillow Group Inc., Class C, NVS(a)     11,314       631,435  
              4,677,930  


S c h e d u l e   o f   I n v e s t m e n t s 33

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI USA Equal Weighted ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
Internet & Direct Marketing Retail — 1.1%                
Amazon.com Inc.(a)     274     $ 516,148  
Booking Holdings Inc.(a)     299       507,002  
eBay Inc.     15,619       541,042  
Expedia Group Inc.     4,884       481,660  
Grubhub Inc.(a)(b)     11,340       545,568  
MercadoLibre Inc.(a)     812       500,216  
Wayfair Inc., Class A(a)(b)     7,253       458,462  
              3,550,098  
IT Services — 4.7%                
Accenture PLC, Class A     2,767       499,693  
Akamai Technologies Inc.(a)     5,859       506,862  
Alliance Data Systems Corp.     5,885       505,404  
Automatic Data Processing Inc.     3,287       508,630  
Black Knight Inc.(a)     7,896       526,742  
Booz Allen Hamilton Holding Corp.     7,645       545,088  
Broadridge Financial Solutions Inc.     4,828       503,850  
Cognizant Technology Solutions Corp., Class A     8,593       523,571  
DXC Technology Co.     19,862       478,873  
EPAM Systems Inc.(a)     2,496       557,107  
Fidelity National Information Services Inc.     3,800       530,936  
Fiserv Inc.(a)     4,838       529,084  
FleetCor Technologies Inc.(a)     1,845       490,383  
Gartner Inc.(a)     3,874       501,257  
Global Payments Inc.     2,856       525,418  
GoDaddy Inc., Class A(a)     7,619       533,178  
International Business Machines Corp.     3,914       509,407  
Jack Henry & Associates Inc.     3,422       519,254  
Leidos Holdings Inc.     4,800       492,720  
Mastercard Inc., Class A(b)     1,733       503,003  
MongoDB Inc.(a)(b)     3,344       509,960  
Okta Inc.(a)     4,289       549,249  
Paychex Inc.     6,619       512,840  
PayPal Holdings Inc.(a)     4,837       522,348  
Sabre Corp.     26,825       365,222  
Square Inc., Class A(a)     7,176       597,976  
Twilio Inc., Class A(a)     4,616       519,946  
VeriSign Inc.(a)     2,810       533,198  
Visa Inc., Class A(b)     2,801       509,110  
Western Union Co. (The)     22,935       513,515  
              15,423,824  
Leisure Products — 0.3%                
Hasbro Inc.     6,071       468,985  
Polaris Inc.     6,302       520,104  
              989,089  
Life Sciences Tools & Services — 1.3%                
Agilent Technologies Inc.     6,976       537,640  
Bio-Rad Laboratories Inc., Class A(a)     1,452       511,133  
Illumina Inc.(a)     1,972       523,901  
IQVIA Holdings Inc.(a)     3,576       498,816  
Mettler-Toledo International Inc.(a)     786       551,536  
PerkinElmer Inc.(b)     6,282       543,016  
Thermo Fisher Scientific Inc.     1,753       509,773  
Waters Corp.(a)     2,732       532,440  
              4,208,255  
Machinery — 2.8%                
Caterpillar Inc.     4,331       538,083  
Cummins Inc.     3,562       538,895  
Deere & Co.     3,557       556,599  
Dover Corp.     4,932       506,714  

 

Security   Shares     Value  
             
Machinery (continued)                
Flowserve Corp.     12,864     $ 517,004  
Fortive Corp.     7,617       526,792  
IDEX Corp.     3,381       500,388  
Illinois Tool Works Inc.     3,172       532,198  
Middleby Corp. (The)(a)(b)     5,267       588,903  
PACCAR Inc.     7,961       532,591  
Parker-Hannifin Corp.     2,809       519,019  
Pentair PLC     13,610       536,098  
Snap-on Inc.     3,754       543,392  
Stanley Black & Decker Inc.     3,586       515,308  
WABCO Holdings Inc.(a)     4,350       587,685  
Westinghouse Air Brake Technologies Corp.     7,393       507,899  
Xylem Inc./NY     6,718       519,570  
              9,067,138  
Media — 2.2%                
Altice USA Inc., Class A(a)     20,340       525,992  
Charter Communications Inc., Class A(a)     1,100       542,487  
Comcast Corp., Class A     12,816       518,151  
Discovery Inc., Class A(a)(b)     6,152       158,106  
Discovery Inc., Class C, NVS(a)     13,923       349,467  
DISH Network Corp., Class A(a)     14,325       480,174  
Fox Corp., Class A, NVS     10,573       325,014  
Fox Corp., Class B(a)     5,160       157,122  
Interpublic Group of Companies Inc. (The)     23,792       508,197  
Liberty Broadband Corp., Class C, NVS(a)     4,286       539,565  
Liberty Global PLC, Class A(a)(b)     8,494       165,803  
Liberty Global PLC, Class C, NVS(a)     21,672       402,882  
Liberty Media Corp.-Liberty SiriusXM, Class A(a)     4,174       186,453  
Liberty Media Corp.-Liberty SiriusXM, Class C, NVS(a)     7,819       348,884  
News Corp., Class A, NVS     40,792       492,563  
Omnicom Group Inc.     7,524       521,263  
Sirius XM Holdings Inc.(b)     81,528       516,888  
ViacomCBS Inc., Class B, NVS     16,851       414,703  
              7,153,714  
Metals & Mining — 0.7%                
Freeport-McMoRan Inc.     49,208       490,112  
Newmont Corp.     12,977       579,163  
Nucor Corp.     12,481       516,089  
Steel Dynamics Inc.     20,595       548,445  
              2,133,809  
Mortgage Real Estate Investment — 0.3%                
AGNC Investment Corp.     30,270       515,801  
Annaly Capital Management Inc.     56,439       500,049  
              1,015,850  
Multi-Utilities — 1.6%                
Ameren Corp.     6,818       538,622  
CenterPoint Energy Inc.     21,842       502,803  
CMS Energy Corp.     8,590       519,008  
Consolidated Edison Inc.     6,269       494,123  
Dominion Energy Inc.     6,647       519,662  
DTE Energy Co.     4,393       490,566  
NiSource Inc.     19,579       529,025  
Public Service Enterprise Group Inc.     10,022       514,229  
Sempra Energy     3,676       513,831  
WEC Energy Group Inc.     5,749       530,805  
              5,152,674  
Multiline Retail — 0.8%                
Dollar General Corp.     3,658       549,798  
Dollar Tree Inc.(a)     6,494       539,197  


34 2 0 2 0  i S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI USA Equal Weighted ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
Multiline Retail (continued)                
Kohl's Corp.     13,495     $ 528,329  
Nordstrom Inc.     14,806       513,768  
Target Corp.     5,020       517,060  
              2,648,152  
Oil, Gas & Consumable Fuels — 3.7%                
Apache Corp.     21,042       524,367  
Cabot Oil & Gas Corp.     38,659       538,520  
Cheniere Energy Inc.(a)     10,709       549,265  
Chevron Corp.     5,365       500,769  
Concho Resources Inc.     7,718       524,978  
ConocoPhillips     10,145       491,221  
Continental Resources Inc./OK     22,732       430,771  
Devon Energy Corp.     26,691       433,462  
Diamondback Energy Inc.     7,933       491,846  
EOG Resources Inc.     7,936       502,031  
Exxon Mobil Corp.     9,878       508,124  
Hess Corp.     9,674       543,485  
HollyFrontier Corp.     13,911       468,523  
Kinder Morgan Inc./DE     26,873       515,156  
Marathon Oil Corp.     57,425       475,479  
Marathon Petroleum Corp.     10,474       496,677  
Noble Energy Inc.     31,180       493,579  
Occidental Petroleum Corp.     14,232       465,956  
ONEOK Inc.     7,688       512,943  
Phillips 66     6,721       503,134  
Pioneer Natural Resources Co.     4,363       535,689  
Targa Resources Corp.     16,047       519,923  
Valero Energy Corp.     7,168       474,880  
Williams Companies Inc. (The)     27,524       524,332  
              12,025,110  
Personal Products — 0.3%                
Coty Inc., Class A     51,255       473,084  
Estee Lauder Companies Inc. (The), Class A     2,797       513,529  
              986,613  
Pharmaceuticals — 1.8%                
Allergan PLC     2,987       569,531  
Bristol-Myers Squibb Co.     8,952       528,705  
Elanco Animal Health Inc.(a)     19,425       532,245  
Eli Lilly & Co.     4,195       529,115  
Jazz Pharmaceuticals PLC(a)     4,323       495,329  
Johnson & Johnson     3,966       533,348  
Merck & Co. Inc.     7,173       549,165  
Mylan NV(a)     27,795       477,796  
Perrigo Co. PLC     10,034       508,624  
Pfizer Inc.     16,285       544,245  
Zoetis Inc.     4,118       548,641  
              5,816,744  
Professional Services — 1.3%                
CoStar Group Inc.(a)     804       536,742  
Equifax Inc.     3,705       526,258  
IHS Markit Ltd.     7,367       524,825  
ManpowerGroup Inc.     6,476       491,788  
Nielsen Holdings PLC     27,232       495,895  
Robert Half International Inc.     9,961       502,134  
TransUnion     6,026       535,832  
Verisk Analytics Inc.     3,448       534,819  
              4,148,293  
Real Estate Management & Development — 0.3%                
CBRE Group Inc., Class A(a)     9,321       523,281  

 

Security   Shares     Value  
             
Real Estate Management & Development (continued)                
Jones Lang LaSalle Inc.     3,478     $ 513,944  
              1,037,225  
Road & Rail — 1.4%                
AMERCO     1,700       548,267  
CSX Corp.     7,439       524,078  
JB Hunt Transport Services Inc.     5,396       520,390  
Kansas City Southern.     3,338       502,970  
Knight-Swift Transportation Holdings Inc.     15,053       480,793  
Norfolk Southern Corp.     2,843       518,421  
Old Dominion Freight Line Inc.     2,658       515,121  
Uber Technologies Inc.(a)     14,721       498,600  
Union Pacific Corp.     3,256       520,341  
              4,628,981  
Semiconductors & Semiconductor Equipment — 3.1%    
Advanced Micro Devices Inc.(a)     10,397       472,856  
Analog Devices Inc.     4,988       543,941  
Applied Materials Inc.     9,077       527,555  
Broadcom Inc.     1,903       518,796  
Intel Corp.     8,943       496,515  
KLA Corp.     3,495       537,216  
Lam Research Corp.     1,818       533,456  
Marvell Technology Group Ltd.     23,860       508,218  
Maxim Integrated Products Inc.     9,471       526,777  
Microchip Technology Inc.     5,530       501,626  
Micron Technology Inc.(a)     10,242       538,319  
NVIDIA Corp.     1,994       538,520  
ON Semiconductor Corp.(a)     28,019       522,835  
Qorvo Inc.(a)     5,730       576,323  
QUALCOMM Inc.     6,719       526,098  
Skyworks Solutions Inc.     5,065       507,412  
Teradyne Inc.     8,777       515,737  
Texas Instruments Inc.     4,507       514,429  
Xilinx Inc.     6,628       553,372  
              9,960,001  
Software — 4.2%                
Adobe Inc.(a)     1,561       538,732  
ANSYS Inc.(a)     2,033       492,372  
Autodesk Inc.(a)     2,857       545,344  
Cadence Design Systems Inc.(a)     7,527       497,836  
CDK Global Inc.     11,294       519,750  
Citrix Systems Inc.     4,789       495,135  
DocuSign Inc.(a)     6,517       562,482  
Dropbox Inc., Class A(a)     32,163       629,108  
Fortinet Inc.(a)     4,952       505,401  
Guidewire Software Inc.(a)(b)     4,847       531,280  
Intuit Inc.     1,948       517,876  
Microsoft Corp.     3,159       511,790  
NortonLifeLock Inc.     28,811       548,273  
Oracle Corp.     10,667       527,590  
Palo Alto Networks Inc.(a)     2,373       438,103  
Paycom Software Inc.(a)(b)     1,859       525,446  
PTC Inc.(a)     6,771       511,549  
RingCentral Inc., Class A(a)(b)     2,407       567,450  
salesforce.com Inc.(a)(b)     3,095       527,388  
ServiceNow Inc.(a)     1,655       539,679  
Splunk Inc.(a)     3,421       504,016  
SS&C Technologies Holdings Inc.     9,146       507,603  
Synopsys Inc.(a)     3,630       500,686  
Tyler Technologies Inc.(a)     1,777       556,823  


S c h e d u l e   o f   I n v e s t m e n t s 35

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI USA Equal Weighted ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
Software (continued)                
VMware Inc., Class A(a)     3,688     $ 444,478  
Workday Inc., Class A(a)     2,967       514,033  
              13,560,223  
Specialty Retail — 2.3%                
Advance Auto Parts Inc.     4,171       554,659  
AutoZone Inc.(a)     551       568,913  
Best Buy Co. Inc.     6,560       496,264  
Burlington Stores Inc.(a)     2,395       517,943  
CarMax Inc.(a)     6,019       525,519  
Gap Inc. (The)     33,993       487,120  
Home Depot Inc. (The)     2,427       528,698  
Lowe's Companies Inc.     4,800       511,536  
O'Reilly Automotive Inc.(a)     1,494       550,868  
Ross Stores Inc.     4,829       525,298  
Tiffany & Co.     4,405       588,464  
TJX Companies Inc. (The)     9,321       557,396  
Tractor Supply Co.     6,046       535,131  
Ulta Salon Cosmetics & Fragrance Inc.(a)     1,980       509,038  
              7,456,847  
Technology Hardware, Storage & Peripherals — 1.3%    
Apple Inc.     1,854       506,810  
Dell Technologies Inc., Class C(a)     11,209       453,516  
Hewlett Packard Enterprise Co.     41,132       526,078  
HP Inc.     26,595       552,910  
NetApp Inc.     11,070       517,191  
Seagate Technology PLC     10,913       523,278  
Western Digital Corp.     8,659       481,094  
Xerox Holdings Corp.(a)     15,891       511,690  
              4,072,567  
Textiles, Apparel & Luxury Goods — 1.4%                
Capri Holdings Ltd.(a)     20,982       541,755  
Hanesbrands Inc.     40,764       539,715  
Lululemon Athletica Inc.(a)     2,282       496,130  
NIKE Inc., Class B     5,799       518,315  
PVH Corp.     6,850       507,653  
Ralph Lauren Corp.     4,904       517,421  
Tapestry Inc.     21,049       493,599  
Under Armour Inc., Class A(a)     18,347       260,344  
Under Armour Inc., Class C, NVS(a)     18,969       236,733  
VF Corp.     7,155       515,160  
              4,626,825  
Tobacco — 0.3%                
Altria Group Inc.     13,080       528,039  

 

Security   Shares     Value  
             
Tobacco (continued)                
Philip Morris International Inc.     6,803     $ 556,962  
              1,085,001  
Trading Companies & Distributors — 0.6%                
Fastenal Co.     15,447       528,596  
HD Supply Holdings Inc.(a)     14,122       536,919  
United Rentals Inc.(a)(b)     3,841       508,856  
WW Grainger Inc.     1,919       532,599  
              2,106,970  
Water Utilities — 0.3%                
American Water Works Co. Inc.     4,247       525,184  
Essential Utilities Inc.     10,939       470,486  
              995,670  
Wireless Telecommunication Services — 0.3%    
Sprint Corp.(a)     64,502       592,773  
T-Mobile U.S. Inc.(a)(b)     5,922       533,928  
              1,126,701  
Total Common Stocks — 99.8%
(Cost: $310,925,334)
            325,131,023  
                 
Short-Term Investments                
                 
Money Market Funds — 3.4%                
BlackRock Cash Funds: Institutional, SL Agency Shares, 1.74%(c)(d)(e)     10,827,110       10,834,689  
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52%(c)(d)     325,000       325,000  
              11,159,689  
Total Short-Term Investments — 3.4%
(Cost: $11,155,682)
            11,159,689  
                 
Total Investments in Securities — 103.2%
(Cost: $322,081,016)
            336,290,712  
                 
Other Assets, Less Liabilities — (3.2)%.             (10,442,756 )
                 
Net Assets — 100.0%           $ 325,847,956  

 

(a) Non-income producing security.
(b) All or a portion of this security is on loan.
(c) Affiliate of the Fund.
(d) Annualized 7-day yield as of period-end.
(e) All or a portion of this security was purchased with cash collateral received from loaned securities.


36 2 0 2 0  i S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI USA Equal Weighted ETF
February 29, 2020  

 

Affiliates

 

Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940Act, were as follows:

 

                                              Change in  
    Shares                 Shares                 Net     Unrealized  
    Held at     Shares     Shares     Held at     Value at           Realized     Appreciation  
Affiliated Issuer   08/31/19     Purchased     Sold     02/29/20     02/29/20     Income     Gain (Loss) (a)   (Depreciation)  
BlackRock Cash Funds: Institutional, SL Agency Shares     10,638,607       188,503 (b)           10,827,110     $ 10,834,689     $ 24,631 (c)   $ 28     $ 2,336  
BlackRock Cash Funds: Treasury, SL Agency Shares     619,000             (294,000 )(b)     325,000       325,000       5,248              
BlackRock Inc.     1,160       163       (275 )     1,048       485,234       7,574       9,276       39,550  
                                    $ 11,644,923     $ 37,453     $ 9,304     $ 41,886  

 

(a) Includes realized capital gain distributions from an affiliated fund, if any.
(b) Net of purchases and sales.

(c) Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

 

Futures Contracts

 

                      Value/  
                Notional     Unrealized  
    Number of     Expiration     Amount     Appreciation  
Description     Contracts       Date       (000 )     (Depreciation)  
Long Contracts                                
S&P 500 E-Mini Index     3       03/20/20     $ 443     $ (50,089 )
S&P MidCap 400 E-Mini Index     1       03/20/20       181       (22,540 )
                            $ (72,629 )

 

Derivative Financial Instruments Categorized by Risk Exposure

 

As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

    Equity  
    Contracts  
Liabilities — Derivative Financial Instruments        
Futures contracts        
Unrealized depreciation on futures contracts(a)   $ 72,629  

 

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

 

For the six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

    Equity  
    Contracts  
Net Realized Gain (Loss) from:        
Futures contracts   $ 106,100  
Net Change in Unrealized Appreciation (Depreciation) on:        
Futures contracts   $ (75,949 )

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:      
Average notional value of contracts — long   $ 766,527  

 

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

 

Fair Value Measurements

 

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

 

S c h e d u l e   o f   I n v e s t m e n t s 37

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI USA Equal Weighted ETF
February 29, 2020  

 

Fair Value Measurements (continued)

 

The following table summarizes the value of the Fund's investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund's investments into major categories is disclosed in the Schedule of Investments above.

 

    Level 1     Level 2     Level 3     Total  
Investments                        
Assets                        
Common Stocks   $ 325,131,023     $     $     $ 325,131,023  
Money Market Funds     11,159,689                   11,159,689  
    $ 336,290,712     $     $     $ 336,290,712  
Derivative financial instruments(a)                                
Liabilities                                
Futures Contracts.   $ (72,629 )   $     $     $ (72,629 )

 

(a) Shown at the unrealized appreciation (depreciation) on the contracts.

 

See notes to financial statements.

 

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Statements of Assets and Liabilities (unaudited)

February 29, 2020

 

                iShares        
          iShares     MSCI     iShares  
    iShares     MSCI Chile     Colombia     MSCI Israel  
    MSCI Brazil ETF     ETF     ETF     ETF  
                         
ASSETS                        
Investments in securities, at value (including securities on loan)(a)                                
Unaffiliated(b)   $ 8,783,126,309     $ 452,901,618     $ 19,680,784     $ 113,665,195  
Affiliated(c)     638,000       412,000       12,000       18,103,530  
Cash     653       335       273       115  
Foreign currency, at value(d)     15,386,643             11,496       49,760  
Cash pledged:                                
Futures contracts     9,297,000       11,000              
Foreign currency collateral pledged:                                
Futures contracts(e)                       3,295  
Receivables:                                
Investments sold     85,379,130       13,814,083       646,888       395,514  
Securities lending income — Affiliated                       4,668  
Variation margin on futures contracts           1,286              
Dividends     71,570,753       795       2,608       389  
Total assets     8,965,398,488       467,141,117       20,354,049       132,222,466  
                                 
LIABILITIES                                
Collateral on securities loaned, at value                       18,041,567  
Deferred foreign capital gain tax                       77,750  
Payables:                                
Investments purchased     86,735,649       12,696,272       571,123       388,466  
Variation margin on futures contracts     2,311,463                   1,601  
Investment advisory fees     4,568,723       227,235       10,591       55,751  
Foreign taxes                       24,169  
Total liabilities     93,615,835       12,923,507       581,714       18,589,304  
                                 
NET ASSETS   $ 8,871,782,653     $ 454,217,610     $ 19,772,335     $ 113,633,162  
                                 
NET ASSETS CONSIST OF:                                
Paid-in capital   $ 10,126,952,698     $ 720,828,768     $ 33,079,244     $ 162,989,612  
Accumulated loss     (1,255,170,045 )     (266,611,158 )     (13,306,909 )     (49,356,450 )
NET ASSETS   $ 8,871,782,653     $ 454,217,610     $ 19,772,335     $ 113,633,162  
                                 
Shares outstanding     232,950,000       16,950,000       1,650,000       2,050,000  
Net asset value   $ 38.08     $ 26.80     $ 11.98     $ 55.43  
Shares authorized     500 million       200 million       25 million       500 million  
Par value   $ 0.001     $ 0.001     $ 0.001     $ 0.001  
                                 
(a)   Securities loaned, at value   $     $     $     $ 17,833,262  
(b)   Investments, at cost — Unaffiliated   $ 7,066,730,917     $ 512,698,183     $ 17,835,945     $ 129,294,618  
(c)   Investments, at cost — Affiliated   $ 638,000     $ 412,000     $ 12,000     $ 18,098,551  
(d)   Foreign currency, at cost   $ 15,786,152     $     $ 11,862     $ 50,114  
(e)   Foreign currency collateral pledged, at cost   $     $     $     $ 3,341  

 

See notes to financial statements.

 

F i n a n c i a l   S t a t e m e n t s

39

 

 

 

 

Statements of Assets and Liabilities (unaudited) (continued)

February 29, 2020

 

                      iShares  
                              MSCI USA  
      iShares       iShares       iShares       Equal  
      MSCI Russia       MSCI South       MSCI Turkey       Weighted  
      ETF       Africa ETF       ETF       ETF  
                                 
ASSETS                                
Investments in securities, at value (including securities on loan)(a)                                
Unaffiliated(b)   $ 513,228,696     $ 283,045,654     $ 264,403,958     $ 324,645,789  
Affiliated(c)     1,538,000       11,225,742       18,558,653       11,644,923  
Cash     584       596       467       1,880  
Foreign currency, at value(d)           82,947       260,340        
Cash pledged:                                
Futures contracts     29,000             14,000       31,000  
Receivables:                                
Investments sold     18,872,364       15,527,567       7,263,344       10,573,171  
Securities lending income — Affiliated           4,028       101,198       3,887  
Dividends     406,903       178       395       514,312  
Total assets     534,075,547       309,886,712       290,602,355       347,414,962  
                                 
LIABILITIES                                
Collateral on securities loaned, at value           11,156,719       18,420,711       10,831,148  
Payables:                                
Investments purchased     10,642,424       14,541,998       7,266,708       10,637,584  
Variation margin on futures contracts     1,980       225       900       4,776  
Capital shares redeemed     8,828,395       451,401       93,754       50,132  
Investment advisory fees     282,768       169,123       163,232       43,366  
Total liabilities     19,755,567       26,319,466       25,945,305       21,567,006  
                                 
NET ASSETS   $ 514,319,980     $ 283,567,246     $ 264,657,050     $ 325,847,956  
                                 
NET ASSETS CONSIST OF:                                
Paid-in capital   $ 583,631,072     $ 646,686,771     $ 612,139,621     $ 314,796,750  
Accumulated earnings (loss)     (69,311,092 )     (363,119,525 )     (347,482,571 )     11,051,206  
NET ASSETS   $ 514,319,980     $ 283,567,246     $ 264,657,050     $ 325,847,956  
                                 
Shares outstanding     14,350,000       7,300,000       11,150,000       5,650,000  
Net asset value   $ 35.84     $ 38.84     $ 23.74     $ 57.67  
Shares authorized     1 billion       400 million       200 million       500 million  
Par value   $ 0.001     $ 0.001     $ 0.001     $ 0.001  
                                 
(a)   Securities loaned, at value   $     $ 9,806,333     $ 15,831,599     $ 10,652,965  
(b)   Investments, at cost — Unaffiliated   $ 483,177,202     $ 435,898,840     $ 429,731,176     $ 310,481,140  
(c)   Investments, at cost — Affiliated   $ 1,538,000     $ 11,222,253     $ 18,549,801     $ 11,599,876  
(d)   Foreign currency, at cost   $     $ 89,518     $ 262,930     $  

 

See notes to financial statements.

 

40 2 0 2 0  i S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

 

Statements of Operations (unaudited)

Six Months Ended February 29, 2020

 

                iShares        
    iShares     iShares     MSCI     iShares  
    MSCI Brazil     MSCI Chile     Colombia     MSCI Israel  
    ETF     ETF     ETF     ETF  
                         
INVESTMENT INCOME                                
Dividends — Unaffiliated   $ 195,164,727     $ 3,717,021     $ 361,348     $ 698,271  
Dividends — Affiliated     186,108       7,819       262       675  
Non-cash dividends — Unaffiliated                       39,160  
Interest — Unaffiliated           127              
Securities lending income — Affiliated — net.                       21,254  
Foreign taxes withheld     (17,379,453 )     (1,142,531 )     (23,663 )     (172,410 )
Total investment income     177,971,382       2,582,436       337,947       586,950  
                                 
EXPENSES                                
Investment advisory fees     27,519,944       1,262,840       74,687       343,852  
Commitment fees                 20        
Total expenses     27,519,944       1,262,840       74,707       343,852  
Net investment income     150,451,438       1,319,596       263,240       243,098  
                                 
REALIZED AND UNREALIZED GAIN (LOSS)                                
Net realized gain (loss) from:                                
Investments — Unaffiliated(a)     (52,162,587 )     (14,148,590 )     (129,653 )     (1,581,863 )
Investments — Affiliated                       164  
In-kind redemptions — Unaffiliated                 40,255       1,638,008  
Futures contracts     5,696,849       187,717             4,059  
Foreign currency transactions     (2,579,405 )     60,272       (22,216 )     587  
Net realized gain (loss)     (49,045,143 )     (13,900,601 )     (111,614 )     60,955  
Net change in unrealized appreciation (depreciation) on:                                
Investments — Unaffiliated(b)     (703,393,813 )     (110,528,143 )     (236,255 )     6,478,372  
Investments — Affiliated                       3,774  
Futures contracts     (18,977,535 )     (20,979 )           (4,648 )
Foreign currency translations     (4,162,913 )     (5 )     (572 )     1,747  
Net change in unrealized appreciation (depreciation)     (726,534,261 )     (110,549,127 )     (236,827 )     6,479,245  
Net realized and unrealized gain (loss)     (775,579,404 )     (124,449,728 )     (348,441 )     6,540,200  
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS   $ (625,127,966 )   $ (123,130,132 )   $ (85,201 )   $ 6,783,298  
                                 
(a)   Net of foreign capital gain tax of   $     $     $     $ 34,585  
(b)   Net of deferred foreign capital gain tax of   $     $     $     $ (4,939 )

 

See notes to financial statements.

 

F i n a n c i a l   S t a t e m e n t s

41

 

 

 

 

Statements of Operations (unaudited) (continued)

Six Months Ended February 29, 2020

 

                      iShares  
                              MSCI USA  
      iShares       iShares       iShares       Equal  
      MSCI Russia       MSCI South       MSCI Turkey       Weighted  
      ETF       Africa ETF       ETF       ETF  
                                 
INVESTMENT INCOME                                
Dividends — Unaffiliated   $ 15,722,608     $ 5,658,583     $ 1,692,056     $ 3,597,088  
Dividends — Affiliated     15,008       3,448       2,559       12,822  
Non-cash dividends — Unaffiliated           31,301,922              
Interest — Unaffiliated     291             63       230  
Securities lending income — Affiliated — net           38,462       659,737       24,631  
Foreign taxes withheld     (1,637,534 )     (777,897 )     (248,145 )     (321 )
Total investment income     14,100,373       36,224,518       2,106,270       3,634,450  
                                 
EXPENSES                                
Investment advisory fees     1,877,980       1,125,998       1,037,242       257,505  
Total expenses     1,877,980       1,125,998       1,037,242       257,505  
Net investment income     12,222,393       35,098,520       1,069,028       3,376,945  
                                 
REALIZED AND UNREALIZED GAIN (LOSS)                                
Net realized gain (loss) from:                                
Investments — Unaffiliated     (5,950,757 )     (60,629,297 )     (10,166,922 )     (5,570,125 )
Investments — Affiliated           377       (629 )     (4,920 )
In-kind redemptions — Unaffiliated     31,202,434       1,539,047       13,799,602       8,665,892  
In-kind redemptions — Affiliated                       14,224  
Futures contracts     (49,554 )     27,002       19,428       106,100  
Foreign currency transactions     23,643       318,217       (19,466 )      
Net realized gain (loss)     25,225,766       (58,744,654 )     3,632,013       3,211,171  
Net change in unrealized appreciation (depreciation) on:                                
Investments — Unaffiliated     (23,059,279 )     (10,883,007 )     645,602       (7,637,485 )
Investments — Affiliated           1,904       3,912       41,886  
Futures contracts     (71,652 )     2,032       (25,861 )     (75,949 )
Foreign currency translations     (310 )     (11,223 )     (1,625 )      
Net change in unrealized appreciation (depreciation)     (23,131,241 )     (10,890,294 )     622,028       (7,671,548 )
Net realized and unrealized gain (loss)     2,094,525       (69,634,948 )     4,254,041       (4,460,377 )
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS   $ 14,316,918     $ (34,536,428 )   $ 5,323,069     $ (1,083,432 )

 

See notes to financial statements.

 

42 2 0 2 0  i S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

 

Statements of Changes in Net Assets

 

    iShares     iShares  
      MSCI Brazil ETF       MSCI Chile ETF  
      Six Months Ended               Six Months Ended          
      02/29/20       Year Ended       02/29/20       Year Ended  
      (unaudited)       08/31/19       (unaudited)       08/31/19  
                                 
INCREASE (DECREASE) IN NET ASSETS                                
                                 
OPERATIONS                                
Net investment income   $ 150,451,438     $ 220,475,060     $ 1,319,596     $ 7,102,577  
Net realized gain (loss)     (49,045,143 )     5,485,759       (13,900,601 )     (24,033,169 )
Net change in unrealized appreciation (depreciation)     (726,534,261 )     1,552,041,207       (110,549,127 )     (51,312,409 )
Net increase (decrease) in net assets resulting from operations     (625,127,966 )     1,778,002,026       (123,130,132 )     (68,243,001 )
                                 
DISTRIBUTIONS TO SHAREHOLDERS(a)                                
From net investment income     (149,254,572 )     (220,258,100 )     (1,176,181 )     (7,045,063 )
Return of capital                       (197,183 )
Decrease in net assets resulting from distributions to shareholders     (149,254,572 )     (220,258,100 )     (1,176,181 )     (7,242,246 )
                                 
CAPITAL SHARE TRANSACTIONS                                
Net increase in net assets derived from capital share transactions     1,440,421,277       1,146,968,776       248,384,044       12,273,938  
                                 
NET ASSETS                                
Total increase (decrease) in net assets     666,038,739       2,704,712,702       124,077,731       (63,211,309 )
Beginning of period     8,205,743,914       5,501,031,212       330,139,879       393,351,188  
End of period   $ 8,871,782,653     $ 8,205,743,914     $ 454,217,610     $ 330,139,879  

 

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

 

See notes to financial statements.

 

F i n a n c i a l   S t a t e m e n t s

43

 

 

 

 

Statements of Changes in Net Assets (continued)

 

    iShares     iShares  
    MSCI Colombia ETF     MSCI Israel ETF  
      Six Months               Six Months          
      Ended               Ended          
      02/29/20       Year Ended       02/29/20       Year Ended  
      (unaudited)       08/31/19       (unaudited)       08/31/19  
                                 
INCREASE (DECREASE) IN NET ASSETS                                
                                 
OPERATIONS                                
Net investment income   $ 263,240     $ 547,978     $ 243,098     $ 762,089  
Net realized gain (loss)     (111,614 )     (2,444,444 )     60,955       17,699,076  
Net change in unrealized appreciation (depreciation)     (236,827 )     (153,891 )     6,479,245       (24,641,152 )
Net increase (decrease) in net assets resulting from operations     (85,201 )     (2,050,357 )     6,783,298       (6,179,987 )
                                 
DISTRIBUTIONS TO SHAREHOLDERS(a)                                
Decrease in net assets resulting from distributions to shareholders     (311,132 )     (580,532 )     (2,125,821 )     (616,740 )
                                 
CAPITAL SHARE TRANSACTIONS                                
Net increase (decrease) in net assets derived from capital share transactions     (3,436,318 )     401,594       (5,577,506 )     (385,452 )
                                 
NET ASSETS                                
Total decrease in net assets     (3,832,651 )     (2,229,295 )     (920,029 )     (7,182,179 )
Beginning of period     23,604,986       25,834,281       114,553,191       121,735,370  
End of period   $ 19,772,335     $ 23,604,986     $ 113,633,162     $ 114,553,191  

 

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

 

See notes to financial statements.

 

44 2 0 2 0  i S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

 

Statements of Changes in Net Assets (continued)

 

    iShares     iShares  
      MSCI Russia ETF       MSCI South Africa ETF  
      Six Months               Six Months          
      Ended               Ended          
      02/29/20       Year Ended       02/29/20       Year Ended  
      (unaudited)       08/31/19       (unaudited)       08/31/19  
                                 
INCREASE (DECREASE) IN NET ASSETS                                
                                 
OPERATIONS                                
Net investment income   $ 12,222,393     $ 37,401,597     $ 35,098,520     $ 11,108,795  
Net realized gain (loss)     25,225,766       (12,393,198 )     (58,744,654 )     (8,135,491 )
Net change in unrealized appreciation (depreciation)     (23,131,241 )     93,343,563       (10,890,294 )     (46,627,365 )
Net increase (decrease) in net assets resulting from operations     14,316,918       118,351,962       (34,536,428 )     (43,654,061 )
                                 
DISTRIBUTIONS TO SHAREHOLDERS(a)                                
Decrease in net assets resulting from distributions to shareholders     (35,932,824 )     (32,427,517 )     (37,167,359 )     (18,209,216 )
                                 
CAPITAL SHARE TRANSACTIONS                                
Net increase (decrease) in net assets derived from capital share transactions     (91,645,099 )     62,796,717       (18,796,392 )     62,816,771  
                                 
NET ASSETS                                
Total increase (decrease) in net assets     (113,261,005 )     148,721,162       (90,500,179 )     953,494  
Beginning of period     627,580,985       478,859,823       374,067,425       373,113,931  
End of period   $ 514,319,980     $ 627,580,985     $ 283,567,246     $ 374,067,425  

 

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

 

See notes to financial statements.

 

F i n a n c i a l   S t a t e m e n t s

45

 

 

 

 

Statements of Changes in Net Assets (continued)

 

    iShares     iShares  
      MSCI Turkey ETF       MSCI USA Equal Weighted ETF  
      Six Months               Six Months          
      Ended               Ended          
      02/29/20       Year Ended       02/29/20       Year Ended  
      (unaudited)       08/31/19       (unaudited)       08/31/19  
                                 
INCREASE (DECREASE) IN NET ASSETS                                
                                 
OPERATIONS                                
Net investment income   $ 1,069,028     $ 10,801,241     $ 3,376,945     $ 3,880,060  
Net realized gain (loss)     3,632,013       (66,447,393 )     3,211,171       3,288,858  
Net change in unrealized appreciation (depreciation)     622,028       155,589,697       (7,671,548 )     (3,125,494 )
Net increase (decrease) in net assets resulting from operations     5,323,069       99,943,545       (1,083,432 )     4,043,424  
                                 
DISTRIBUTIONS TO SHAREHOLDERS(a)                                
Decrease in net assets resulting from distributions to shareholders     (4,116,823 )     (10,891,206 )     (2,858,157 )     (4,050,996 )
                                 
CAPITAL SHARE TRANSACTIONS                                
Net increase (decrease) in net assets derived from capital share transactions     (50,739,442 )     (161,658,897 )     21,699,603       115,277,153  
                                 
NET ASSETS                                
Total increase (decrease) in net assets     (49,533,196 )     (72,606,558 )     17,758,014       115,269,581  
Beginning of period     314,190,246       386,796,804       308,089,942       192,820,361  
End of period   $ 264,657,050     $ 314,190,246     $ 325,847,956     $ 308,089,942  

 

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

 

See notes to financial statements.

 

46 2 0 2 0  i S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

 

Financial Highlights

(For a share outstanding throughout each period)

 

    iShares MSCI Brazil ETF  
    Six Months Ended                                
    02/29/20     Year Ended     Year Ended     Year Ended     Year Ended     Year Ended  
    (unaudited)     08/31/19     08/31/18     08/31/17     08/31/16     08/31/15  
                                     
Net asset value, beginning of period   $ 40.92     $ 32.03     $ 40.06     $ 33.52     $ 24.71     $ 53.61  
Net investment income(a)     0.69       1.12       1.14       0.76       0.63       1.00  
Net realized and unrealized gain (loss)(b)     (2.86 )     8.88       (8.22 )     6.45       8.62       (28.87 )
Net increase (decrease) from investment operations     (2.17 )     10.00       (7.08 )     7.21       9.25       (27.87 )
                                                 
Distributions(c)                                                
From net investment income     (0.67 )     (1.11 )     (0.95 )     (0.67 )     (0.44 )     (1.03 )
Total distributions     (0.67 )     (1.11 )     (0.95 )     (0.67 )     (0.44 )     (1.03 )
                                                 
Net asset value, end of period   $ 38.08     $ 40.92     $ 32.03     $ 40.06     $ 33.52     $ 24.71  
                                                 
Total Return                                                
Based on net asset value     (5.53 )%(d)     31.36 %     (17.87 )%     22.03 %     38.22 %     (52.49 )%
                                                 
Ratios to Average Net Assets                                                
Total expenses     0.58 %(e)     0.59 %     0.59 %     0.62 %     0.63 %     0.62 %
Net investment income     3.17 %(e)     2.75 %     2.86 %     2.10 %     2.41 %     2.73 %
                                                 
Supplemental Data                                                
Net assets, end of period (000)   $ 8,871,783     $ 8,205,744     $ 5,501,031     $ 6,327,919     $ 3,899,630     $ 1,989,135  
Portfolio turnover rate(f)     6 %(d)(g)     16 %(g)     30 %(g)     20 %(g)     18 %(g)     63 %(g)

 

(a) Based on average shares outstanding.
(b) The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.
(c) Distributions for annual periods determined in accordance with U.S. federal income tax regulations.
(d) Not annualized.
(e) Annualized.
(f) Portfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash in U.S. dollars ("cash creations").

(g)    Portfolio turnover rate excluding cash creations was as follows:     6 %     10 %     13 %     13 %     4 %     48 %

 

See notes to financial statements.

 

F i n a n c i a l   H i g h l i g h t s

47

 

 

 

 

Financial Highlights (continued)

 

(For a share outstanding throughout each period)

 

    iShares MSCI Chile ETF  
    Six Months Ended                                
    02/29/20     Year Ended     Year Ended     Year Ended     Year Ended     Year Ended  
    (unaudited)     08/31/19     08/31/18     08/31/17     08/31/16     08/31/15  
                                     
Net asset value, beginning of period   $ 35.88     $ 43.71     $ 47.96     $ 36.77     $ 34.75     $ 43.52  
Net investment income(a)     0.10       0.74       0.78       0.69       0.78       0.66  
Net realized and unrealized gain (loss)(b)     (9.11 )     (7.76 )     (4.06 )     11.21       2.03       (8.81 )
Net increase (decrease) from investment operations     (9.01 )     (7.02 )     (3.28 )     11.90       2.81       (8.15 )
                                                 
Distributions(c)                                                
From net investment income     (0.07 )     (0.79 )     (0.92 )     (0.67 )     (0.75 )     (0.62 )
Return of capital           (0.02 )     (0.05 )     (0.04 )     (0.04 )      
Total distributions     (0.07 )     (0.81 )     (0.97 )     (0.71 )     (0.79 )     (0.62 )
                                                 
Net asset value, end of period   $ 26.80     $ 35.88     $ 43.71     $ 47.96     $ 36.77     $ 34.75  
                                                 
Total Return                                                
Based on net asset value     (25.14 )%(d)     (16.22 )%     (7.03 )%     32.65 %     8.17 %     (18.85 )%
                                                 
Ratios to Average Net Assets                                                
Total expenses     0.58 %(e)     0.59 %     0.59 %     0.62 %     0.64 %     0.62 %
Net investment income     0.61 %(e)     1.74 %     1.55 %     1.68 %     2.20 %     1.64 %
                                                 
Supplemental Data                                                
Net assets, end of period (000)   $ 454,218     $ 330,140     $ 393,351     $ 467,645     $ 327,244     $ 234,536  
Portfolio turnover rate(f)     18 %(d)(g)     75 %(g)     54 %(g)     54 %(g)     73 %(g)     71 %(g)

 

(a) Based on average shares outstanding.
(b) The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.
(c) Distributions for annual periods determined in accordance with U.S. federal income tax regulations.
(d) Not annualized.
(e) Annualized.
(f) Portfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash in U.S. dollars ("cash creations").
(g)    Portfolio turnover rate excluding cash creations was as follows:     10 %     12 %     11 %     8 %     11 %     10 %

 

See notes to financial statements.

 

48 2 0 2 0  i S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

 

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

      iShares MSCI Colombia ETF  
      Six Months Ended                                          
      02/29/20       Year Ended       Year Ended       Year Ended       Year Ended       Year Ended  
      (unaudited)       08/31/19       08/31/18       08/31/17       08/31/16       08/31/15  
                                                 
Net asset value, beginning of period   $ 12.42     $ 13.96     $ 14.58     $ 13.18     $ 11.88     $ 28.22  
Net investment income(a)     0.14       0.35       0.30       0.23       0.25       0.46 (b)
Net realized and unrealized gain (loss)(c)     (0.40 )     (1.50 )     (0.70 )     1.34       1.23       (16.34 )
Net increase (decrease) from investment operations     (0.26 )     (1.15 )     (0.40 )     1.57       1.48       (15.88 )
                                                 
Distributions(d)                                                
From net investment income     (0.18 )     (0.39 )     (0.22 )     (0.17 )     (0.18 )     (0.45 )
Return of capital     —                                  (0.01 )
Total distributions     (0.18 )     (0.39 )     (0.22 )     (0.17 )     (0.18 )     (0.46 )
                                                 
Net asset value, end of period   $ 11.98     $ 12.42     $ 13.96     $ 14.58     $ 13.18     $ 11.88  
                                                 
Total Return                                                
Based on net asset value     (2.23 )%(e)     (8.18 )%     (2.69 )%     12.05 %     12.49 %     (56.73 )%
                                                 
Ratios to Average Net Assets                                                
Total expenses     0.61 %(f)     0.61 %     0.61 %     0.61 %     0.61 %     0.61 %
Net investment income     2.15 %(f)     2.71 %     2.01 %     1.72 %     2.16 %     2.60 %(b)
                                                 
Supplemental Data                                                
Net assets, end of period (000)   $ 19,772     $ 23,605     $ 25,834     $ 22,594     $ 17,136     $ 14,251  
Portfolio turnover rate(g)     22 %(e)     88 %     26 %     14 %     68 %     86 %

 

(a) Based on average shares outstanding.
(b) Includes a one-time special distribution from Ecopetrol SA. Excluding such special distribution, the net investment income would have been $0.33 per share and 1.87% of average net assets.
(c) The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.
(d) Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(e) Not annualized.

(f) Annualized.
(g) Portfolio turnover rate excludes in-kind transactions.

 

See notes to financial statements.

 

F i n a n c i a l    H i g h l i g h t s 49

 

 

 

 

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    iShares MSCI Israel ETF  
    Six Months Ended                                
    02/29/20     Year Ended     Year Ended     Year Ended     Year Ended     Year Ended  
    (unaudited)     08/31/19     08/31/18     08/31/17     08/31/16     08/31/15  
                                     
Net asset value, beginning of period   $ 53.28     $ 56.62     $ 48.19     $ 49.36     $ 50.51     $ 50.69  
Net investment income(a)     0.12       0.33       0.59       0.62       0.71       1.23  
Net realized and unrealized gain (loss)(b)     3.04       (3.42 )     8.88       (0.98 )     (0.87 )     (0.34 )
Net increase (decrease) from investment operations     3.16       (3.09 )     9.47       (0.36 )     (0.16 )     0.89  
                                                 
Distributions(c)                                                
From net investment income     (1.01 )     (0.25 )     (1.04 )     (0.81 )     (0.99 )     (1.07 )
Total distributions     (1.01 )     (0.25 )     (1.04 )     (0.81 )     (0.99 )     (1.07 )
                                                 
Net asset value, end of period   $ 55.43     $ 53.28     $ 56.62     $ 48.19     $ 49.36     $ 50.51  
                                                 
Total Return                                                
Based on net asset value     5.88 %(d)     (5.45 )%     19.91 %     (0.77 )%     (0.23 )%     1.80 %
                                                 
Ratios to Average Net Assets                                                
Total expenses     0.58 %(e)     0.59 %     0.59 %     0.62 %     0.64 %     0.62 %
Net investment income     0.41 %(e)     0.60 %     1.15 %     1.25 %     1.46 %     2.45 %
                                                 
Supplemental Data                                                
Net assets, end of period (000)   $ 113,633     $ 114,553     $ 121,735     $ 89,152     $ 93,793     $ 126,285  
Portfolio turnover rate(f)     2 %(d)     17 %     6 %     28 %     46 %     14 %

 

(a) Based on average shares outstanding.
(b) The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.
(c) Distributions for annual periods determined in accordance with U.S. federal income tax regulations.
(d) Not annualized.
(e) Annualized.
(f) Portfolio turnover rate excludes in-kind transactions.

 

See notes to financial statements.

  

50 2 0 2 0  i S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

 

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

      iShares MSCI Russia ETF  
      Six Months Ended                                          
      02/29/20       Year Ended       Year Ended       Year Ended       Year Ended       Year Ended  
      (unaudited)       08/31/19       08/31/18       08/31/17 (a)     08/31/16 (a)     08/31/15 (a)
                                                 
Net asset value, beginning of period   $ 37.81     $ 32.47     $ 32.13     $ 27.92     $ 25.03     $ 36.68  
Net investment income(b)     0.78       2.33       1.21       1.14       1.06       0.94  
Net realized and unrealized gain (loss)(c)     (0.25 )     5.04       0.22       4.07       2.65       (11.27 )
Net increase (decrease) from investment operations     0.53       7.37       1.43       5.21       3.71       (10.33 )
                                                 
Distributions(d)                                                
From net investment income     (2.50 )     (2.03 )     (1.09 )     (1.00 )     (0.82 )     (1.32 )
Total distributions     (2.50 )     (2.03 )     (1.09 )     (1.00 )     (0.82 )     (1.32 )
                                                 
Net asset value, end of period   $ 35.84     $ 37.81     $ 32.47     $ 32.13     $ 27.92     $ 25.03  
                                                 
Total Return                                                
Based on net asset value     0.49 %(e)     23.64 %     4.37 %     18.73 %     15.62 %     (27.57 )%
                                                 
Ratios to Average Net Assets                                                
Total expenses     0.58 %(f)     0.59 %     0.59 %     0.62 %     0.64 %     0.62 %
Net investment income     3.78 %(f)     6.60 %     3.50 %     4.27 %     4.17 %     3.33 %
                                                 
Supplemental Data                                                
Net assets, end of period (000)   $ 514,320     $ 627,581     $ 478,860     $ 530,076     $ 319,629     $ 210,912  
Portfolio turnover rate(g)     13 %(e)     18 %     32 %     18 %     23 %     19 %

 

(a) Per share amounts reflect a one-for-two reverse stock split effective after the close of trading on November 4, 2016.

(b) Based on average shares outstanding.

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

(d) Distributions for annual periods determined in accordance with U.S. federal income tax regulations.
(e) Not annualized.

(f) Annualized.

(g) Portfolio turnover rate excludes in-kind transactions.

 

See notes to financial statements

 

F i n a n c i a l   H i g h l i g h t s

51

 

 

 

 

Financial Highlights (continued)

 

(For a share outstanding throughout each period)

 

      iShares MSCI South Africa ETF  
      Six Months Ended                                          
      02/29/20       Year Ended       Year Ended       Year Ended       Year Ended       Year Ended  
      (unaudited)       08/31/19       08/31/18       08/31/17       08/31/16       08/31/15  
                                                 
Net asset value, beginning of period   $ 47.96     $ 54.87     $ 62.62     $ 52.78     $ 57.44     $ 70.77  
Net investment income(a)     4.39       1.31       1.41       1.07       1.02       1.28  
Net realized and unrealized gain (loss)(b)     (8.81 )     (5.84 )     (7.69 )     9.79       (3.24 )     (13.24 )
Net increase (decrease) from investment operations     (4.42 )     (4.53 )     (6.28 )     10.86       (2.22 )     (11.96 )
                                                 
Distributions(c)                                                
From net investment income     (4.70 )     (2.38 )     (1.47 )     (1.02 )     (2.44 )     (1.37 )
Total distributions     (4.70 )     (2.38 )     (1.47 )     (1.02 )     (2.44 )     (1.37 )
                                                 
Net asset value, end of period   $ 38.84     $ 47.96     $ 54.87     $ 62.62     $ 52.78     $ 57.44  
                                                 
Total Return                                                
Based on net asset value     (10.86 )%(d)     (8.45 )%     (10.20 )%     20.91 %     (3.64 )%     (17.07 )%
                                                 
Ratios to Average Net Assets                                                
Total expenses     0.58 %(e)     0.59 %     0.59 %     0.62 %     0.64 %     0.62 %
Net investment income     18.09 %(e)     2.48 %     2.20 %     1.91 %     1.96 %     1.94 %
                                                 
Supplemental Data                                                
Net assets, end of period (000)   $ 283,567     $ 374,067     $ 373,114     $ 419,587     $ 406,443     $ 373,346  
Portfolio turnover rate(f)     26 %(d)     12 %     15 %     13 %     12 %     9 %

 

(a) Based on average shares outstanding.

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

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

(d) Not annualized.

(e) Annualized.

(f) Portfolio turnover rate excludes in-kind transactions.

 

See notes to financial statements

 

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Financial Highlights (continued)

(For a share outstanding throughout each period)

 

      iShares MSCI Turkey ETF  
      Six Months Ended                                          
      02/29/20       Year Ended       Year Ended       Year Ended       Year Ended       Year Ended  
      (unaudited)       08/31/19       08/31/18       08/31/17       08/31/16       08/31/15  
                                                 
Net asset value, beginning of period   $ 24.08     $ 20.09     $ 46.17     $ 38.16     $ 38.27     $ 55.72  
Net investment income(a)     0.08       0.60       1.01       0.97       0.96       1.13 (b)
Net realized and unrealized gain (loss)(c)     (0.12 )     4.06       (26.05 )     8.12       (0.17 )     (17.49 )
Net increase (decrease) from investment operations     (0.04 )     4.66       (25.04 )     9.09       0.79       (16.36 )
                                                 
Distributions(d)                                                
From net investment income     (0.30 )     (0.67 )     (1.04 )     (1.08 )     (0.90 )     (1.09 )
Total distributions     (0.30 )     (0.67 )     (1.04 )     (1.08 )     (0.90 )     (1.09 )
                                                 
Net asset value, end of period   $ 23.74     $ 24.08     $ 20.09     $ 46.17     $ 38.16     $ 38.27  
                                                 
Total Return                                                
Based on net asset value     (0.31 )%(e)     23.38 %     (54.97 )%     24.23 %     1.98 %     (29.69 )%
                                                 
Ratios to Average Net Assets                                                
Total expenses     0.58 %(f)     0.59 %     0.59 %     0.62 %     0.64 %     0.62 %
Net investment income     0.60 %(f)     2.43 %     2.76 %     2.58 %     2.45 %     2.31 %(b)
                                                 
Supplemental Data                                                
Net assets, end of period (000)   $ 264,657     $ 314,190     $ 386,797     $ 424,727     $ 368,225     $ 371,225  
Portfolio turnover rate(g).     6 %(e)     20 %     7 %     6 %     6 %     6 %

 

(a) Based on average shares outstanding.

(b) Includes a one-time special distribution from Turkcell Iletisim Hizmetleri AS. Excluding such special distribution, the net investment income would have been $0.76 per share and 1.55% of average net assets.

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

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

(e) Not annualized.

(f) Annualized.

(g) Portfolio turnover rate excludes in-kind transactions.

 

See notes to financial statements

 

F i n a n c i a l   H i g h l i g h t s 53

 

 

 

 

Financial Highlights (continued) 

(For a share outstanding throughout each period)

 

      iShares MSCI USA Equal Weighted ETF  
      Six Months Ended                                          
      02/29/20       Year Ended       Year Ended       Year Ended       Year Ended       Year Ended  
      (unaudited)       08/31/19       08/31/18       08/31/17       08/31/16       08/31/15  
                                                 
Net asset value, beginning of period   $ 58.13     $ 59.33     $ 51.30     $ 46.05     $ 42.51     $ 43.08  
Net investment income(a)     0.61       0.92       0.98       0.85       0.77       0.80  
Net realized and unrealized gain (loss)(b)     (0.55 )     (1.11 )     7.94       5.18       3.63       (0.57 )
Net increase (decrease) from investment operations     0.06       (0.19 )     8.92       6.03       4.40       0.23  
                                                 
Distributions(c)                                                
From net investment income     (0.52 )     (1.01 )     (0.89 )     (0.78 )     (0.86 )     (0.80 )
Total distributions     (0.52 )     (1.01 )     (0.89 )     (0.78 )     (0.86 )     (0.80 )
                                                 
Net asset value, end of period   $ 57.67     $ 58.13     $ 59.33     $ 51.30     $ 46.05     $ 42.51  
                                                 
Total Return                                                
Based on net asset value     0.05 %(d)     (0.23 )%     17.55 %     13.22 %     10.54 %     0.48 %
                                                 
Ratios to Average Net Assets                                                
Total expenses     0.15 %(e)     0.15 %     0.15 %     0.15 %     0.15 %     0.15 %
Net investment income     1.97 %(e)     1.63 %     1.76 %     1.72 %     1.79 %     1.82 %
                                                 
Supplemental Data                                                
Net assets, end of period (000)   $ 325,848     $ 308,090     $ 192,820     $ 135,945     $ 73,673     $ 44,632  
Portfolio turnover rate(f)     12 %(d)     24 %     23 %     27 %     28 %     39 %

 

(a) Based on average shares outstanding.

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

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

(d) Not annualized.

(e) Annualized.

(f) Portfolio turnover rate excludes in-kind transactions.

 

See notes to financial statements

 

54 2 0 2 0  i S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

 

Notes to Financial Statements (unaudited)

 

1. ORGANIZATION

 

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

 

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

 

  Diversification
iShares ETF Classification
MSCI Brazil Non-diversified
MSCI Chile Non-diversified
MSCI Colombia Non-diversified
MSCI Israel Non-diversified
MSCI Russia Non-diversified
MSCI South Africa Non-diversified
MSCI Turkey Non-diversified
MSCI USA Equal Weighted Diversified

 

2. SIGNIFICANT ACCOUNTING POLICIES

 

The following significant accounting policies are consistently followed by each Fund in the preparation of its financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies.

 

Investment Transactions and Income Recognition: Investment transactions are accounted for on trade date. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recognized on the ex-dividend date, net of any foreign taxes withheld at source. Any taxes withheld that are reclaimable from foreign tax authorities are reflected in tax reclaims receivable. Distributions received by the Funds may include a return of capital that is estimated by management. Such amounts are recorded as a reduction of the cost of investments or reclassified to capital gains. Upon notification from issuers, some of the dividend income received from a real estate investment trust may be re-designated as a return of capital or capital gain. Non-cash dividends, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Interest income is accrued daily.

 

Foreign Currency Translation: The accounting records of the Funds are maintained in U.S. dollars. Foreign currencies, as well as investment securities and other assets and liabilities denominated in non-U.S. currencies are translated to U.S. dollars using prevailing market rates as quoted by one or more data service providers. Purchases and sales of investments, income receipts and expense payments are translated into U.S. dollars on the respective dates of such transactions.

 

Each Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of investments. Such fluctuations are reflected by the Funds as a component of net realized and unrealized gain (loss) from investments for financial reporting purposes. Each Fund reports realized currency gain (loss) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for U.S. federal income tax purposes.

 

Foreign Taxes: The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which each Fund invests. These foreign taxes, if any, are paid by each Fund and are reflected in its statement of operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of February 29, 2020, if any, are disclosed in the statement of assets and liabilities.

 

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

 

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

 

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

 

N o t e s   t o   F i n a n c i a l   S t a t e m e n t s

55

 

 

 

 

Notes to Financial Statements (unaudited) (continued)

 

3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

 

Investment Valuation Policies: Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date should the reporting period end on a day that the Fund’s listing exchange is not open. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. A fund determines the fair value of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Directors of the Company (the “Board”). The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.

 

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

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

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

Futures contract notional values are determined based on that day’s last reported settlement price on the exchange where the contract is traded.

 

If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of an investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with policies approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee include market approach, income approach and the cost approach. Valuation techniques used under these approaches take into consideration inputs that include but are not limited to (i) attributes specific to the investment; (ii) the principal market for the investment; (iii) the customary participants in the principal market for the investment; (iv) data assumptions by market participants for the investment, if reasonably available; (v) quoted prices for similar investments in active markets; and (vi) other inputs, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or default rates.

 

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.

 

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

 

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

Level 1 – Unadjusted price quotations in active markets for identical assets or liabilities;

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

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

 

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgement exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The fair value hierarchy for each Fund’s investments is included in its schedule of investments. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

 

4. SECURITIES AND OTHER INVESTMENTS

 

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

 

As of February 29, 2020, any securities on loan were collateralized by cash and/or U.S. government obligations. Cash collateral received was invested in money market funds managed by BlackRock Fund Advisors (“BFA”), the Funds' investment adviser, or its affiliates and is disclosed in the schedules of investments. Any non-cash collateral

 

56 2 0 2 0  i S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

 

Notes to Financial Statements (unaudited) (continued)

 

received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan for each Fund, if any, are also disclosed in its schedule of investments. The market value of any securities on loan as of February 29, 2020 and the value of the related cash collateral are disclosed in the statements of assets and liabilities.

 

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

 

The following table is a summary of the securities lending agreements by counterparty which are subject to offset under an MSLA as of February 29, 2020:

 

    Market Value of     Cash Collateral     Non-Cash Collateral        
iShares ETF and Counterparty   Securities on Loan     Received(a)     Received     Net Amount  
MSCI Israel                                
Barclays Capital Inc.   $ 53,038     $ 53,038     $     $  
Citigroup Global Markets Inc.     5,709,000       5,707,282             (1,718 )(b)
Credit Suisse AG Dublin Branch     887,018       887,018              
Goldman Sachs & Co.     184,439       184,439              
JPMorgan Securities LLC     6,059,555       6,059,555              
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending)     4,940,212       4,940,212              
    $ 17,833,262     $ 17,831,544     $     $ (1,718 )
MSCI South Africa                                
Citigroup Global Markets Inc.   $ 9,806,333     $ 9,806,333     $     $  
                                 
MSCI Turkey                                
BofA Securities, Inc.   $ 1,815,874     $ 1,815,874     $     $  
Citigroup Global Markets Inc.     4,196,944       4,196,944              
Credit Suisse AG Dublin Branch     1,496,063       1,496,063              
Credit Suisse Securities (USA) LLC     1,712,669       1,712,669              
Goldman Sachs & Co.     3,636,843       3,636,843              
HSBC Bank PLC     372,469       372,469              
JPMorgan Securities LLC     1,143,759       1,143,759              
Morgan Stanley & Co. LLC     1,456,978       1,456,978              
    $ 15,831,599     $ 15,831,599     $     $  
MSCI USA Equal Weighted                                
Barclays Bank PLC   $ 683,082     $ 683,082     $     $  
Barclays Capital Inc.     364,120       364,120              
BNP Paribas Prime Brokerage International Ltd.     1,407,947       1,407,947              
BofA Securities, Inc.     1,070,123       1,059,856             (10,267 )(b)
Citigroup Global Markets Inc.     1,121,448       1,121,448              
Credit Suisse AG Dublin Branch     1,687,236       1,687,236              
Goldman Sachs & Co.     1,393,516       1,393,516              
HSBC Bank PLC     1,640       1,640              
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending)     507,975       507,975              
Nomura Securities International Inc.     704,643       699,214             (5,429 )(b)
RBC Capital Markets LLC     14,100       14,100              
SG Americas Securities LLC     503,003       503,003              
UBS AG     599,386       599,386              
UBS Securities LLC     594,746       594,746              
    $ 10,652,965     $ 10,637,269     $     $ (15,696 )

 

(a) Collateral received in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by each Fund is disclosed in the Fund's statement of assets and liabilities.

(b) 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 a counterparty.

 

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

 

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Notes to Financial Statements (unaudited) (continued)

 

value of an investment purchased with cash collateral falls below the market value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. Such losses are borne entirely by each Fund.

 

5. DERIVATIVE FINANCIAL INSTRUMENTS

 

Futures Contracts: Each Fund’s use of futures contracts is generally limited to cash equitization. This involves the use of available cash to invest in index futures contracts in order to gain exposure to the equity markets represented in or by the Fund’s underlying index and is intended to allow the Fund to better track its underlying index. Futures contracts are standardized, exchange-traded agreements to buy or sell a specific quantity of an underlying instrument at a set price on a future date. Depending on the terms of a contract, a futures contract is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date.

 

Upon entering into a futures contract, a fund is required to pledge to the executing broker which holds segregated from its own assets, an amount of cash, U.S. government securities or other high-quality debt and equity securities equal to the minimum initial margin requirements of the exchange on which the contract is traded. Securities deposited as initial margin, if any, are designated in the schedule of investments and cash deposited, if any, is shown as cash pledged for futures contracts in the statement of assets and liabilities.

 

Pursuant to the contract, a fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation or depreciation and, if any, shown as variation margin receivable or payable on futures contracts in the statement of assets and liabilities. When the contract is closed, a realized gain or loss is recorded in the statement of operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. Losses may arise if the notional value of a futures contract decreases due to an unfavorable change in the market rates or values of the underlying instrument during the term of the contract or if the counterparty does not perform under the contract. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and the assets underlying such contracts.

 

6. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

 

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

 

For its investment advisory services to each of the iShares MSCI Brazil, iShares MSCI Chile, iShares MSCI Israel, iShares MSCI Russia, iShares MSCI South Africa and iShares MSCI Turkey ETFs, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Funds, based on each Fund’s allocable portion of the aggregate of the average daily net assets of the Fund and certain other iShares funds, as follows:

 

Aggregate Average Daily Net Assets   Investment Advisory Fee  
First $2 billion     0.74 %
Over $2 billion, up to and including $4 billion     0.69  
Over $4 billion, up to and including $8 billion     0.64  
Over $8 billion, up to and including $16 billion     0.57  
Over $16 billion, up to and including $24 billion     0.51  
Over $24 billion, up to and including $32 billion     0.48  
Over $32 billion     0.45  

 

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

 

iShares ETF   Investment Advisory Fee  
MSCI Colombia     0.61 %
MSCI USA Equal Weighted     0.15  

 

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

 

Securities Lending: The U.S. Securities and Exchange Commission (the “SEC”) has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan in a money market fund managed by BFA, or its affiliates, however, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees each Fund bears to an annual rate of 0.04% (the “collateral investment fees”). Securities lending income is equal to the total of income earned from the reinvestment of cash collateral (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. Each Fund retains a portion of securities lending income and remits the remaining portion to BTC as compensation for its services as securities lending agent.

 

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Notes to Financial Statements (unaudited) (continued)

 

Pursuant to the current securities lending agreement, the iShares MSCI USA Equal Weighted ETF (the “Group 1 Fund”), retains 75% of securities lending income (which excludes collateral investment fees) and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

 

Pursuant to the current securities lending agreement, each of iShares MSCI Brazil ETF, iShares MSCI Chile ETF, iShares MSCI Colombia ETF, iShares MSCI Israel ETF, iShares MSCI Russia ETF, iShares MSCI South Africa ETF and iShares MSCI Turkey ETF (the “Group 2 Funds”), retains 82% of securities lending income (which excludes collateral investment fees) and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

 

In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across all 1940 Act iShares exchange-traded funds (the “iShares ETF Complex”) in a given calendar year exceeds a specified threshold: (1) the Group 1 Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year 80% of securities lending income (which excludes collateral investment fees), and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees, and (2) Each Group 2 Fund will retain for the remainder of that calendar year 85% of securities lending income (which excludes collateral investment fees), and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

 

Prior to January 1, 2020, each Group 1 Fund retained 73.5% of securities lending income (which excludes collateral investment fees) and the amount retained was not less than 65% of the total of securities lending income plus the collateral investment fees. Each Group 2 Fund retained 82% of securities lending income (which excludes collateral investment fees) and the amount retained was not less than 70% of the total of securities lending income plus the collateral investment fees. In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across the iShares ETF Complex in a calendar year exceeded a specified threshold: (1) each Group 1 Fund, pursuant to the securities lending agreement, retained for the remainder of that calendar year 80% of securities lending income (which excludes collateral investment fees), and the amount retained could never be less than 70% of the total of securities lending income plus the collateral investment fees, and (2) Each Group 2 Fund, pursuant to the securities lending agreement, retained for the remainder of that calendar year 85% of securities lending income (which excludes collateral investment fees), and the amount retained could never be less than 70% of the total of securities lending income plus the collateral investment fees.

 

The share of securities lending income earned by each Fund is shown as securities lending income – affiliated – net in its statement of operations. For the six months ended February 29, 2020, the Funds paid BTC the following amounts for securities lending agent services:

 

    Fees Paid  
iShares ETF   to BTC  
MSCI Israel   $ 6,710  
MSCI South Africa     11,140  
MSCI Turkey     149,190  
MSCI USA Equal Weighted     10,448  

 

Officers and Directors: Certain officers and/or directors of the Company are officers and/or directors of BlackRock or its affiliates.

 

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

 

For the six months ended February 29, 2020, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:

 

                Net Realized  
iShares ETF   Purchases     Sales     Gain (Loss)  
MSCI Israel   $ 38,415     $ 493,870     $ (1,083,607 )
MSCI Russia     8,018,863       217,172       (173,524 )
MSCI South Africa           28,469,713       (2,519,170 )
MSCI USA Equal Weighted     15,634,693       14,962,353       (1,987,099 )

 

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

 

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

 

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Notes to Financial Statements (unaudited) (continued)

 

7. PURCHASES AND SALES

 

For the six months ended February 29, 2020, purchases and sales of investments, excluding in-kind transactions and short-term investments, were as follows:

 

iShares ETF   Purchases     Sales  
MSCI Brazil   $ 1,916,503,018     $ 532,446,425  
MSCI Chile     320,849,420       72,937,732  
MSCI Colombia     5,332,999       8,648,352  
MSCI Israel     2,624,533       4,920,045  
MSCI Russia     80,078,281       132,571,180  
MSCI South Africa     95,433,380       119,458,379  
MSCI Turkey     19,871,025       20,973,689  
MSCI USA Equal Weighted     41,948,806       40,849,198  

 

For the six months ended February 29, 2020, in-kind transactions were as follows:

 

    In-kind     In-kind  
iShares ETF   Purchases     Sales  
MSCI Colombia   $ 149,972     $ 367,543  
MSCI Israel           4,976,998  
MSCI Russia     28,954,623       92,635,078  
MSCI South Africa     48,321,187       75,920,273  
MSCI Turkey     58,657,094       111,345,257  
MSCI USA Equal Weighted     45,475,232       23,902,500  

 

8. INCOME TAX INFORMATION

 

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

 

Management has analyzed tax laws and regulations and their application to the Funds as of February 29, 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.

 

As of August 31, 2019, the Funds had non-expiring capital loss carryforwards available to offset future realized capital gains as follows:

 

iShares ETF   Non-Expiring  
MSCI Brazil   $ 2,428,319,347  
MSCI Chile     138,772,701  
MSCI Colombia     11,656,921  
MSCI Israel     28,754,391  
MSCI Russia     89,746,813  
MSCI South Africa     122,895,248  
MSCI Turkey     151,898,678  
MSCI USA Equal Weighted     2,269,871  

 

A fund may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” Such fund may elect to mark-to-market annually the shares of each passive foreign investment company and would be required to distribute to shareholders any such marked-to-market gains.

 

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Notes to Financial Statements (unaudited) (continued)

 

As of February 29, 2020, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:

 

                      Net Unrealized  
          Gross Unrealized     Gross Unrealized     Appreciation  
iShares ETF   Tax Cost     Appreciation     Depreciation     (Depreciation)  
MSCI Brazil   $ 7,590,710,949     $ 1,948,485,504     $ (773,897,726 )   $ 1,174,587,778  
MSCI Chile     567,296,869       9,390,358       (123,394,588 )     (114,004,230 )
MSCI Colombia     21,206,420       2,716,066       (4,229,702 )     (1,513,636 )
MSCI Israel     152,022,364       19,602,072       (39,860,359 )     (20,258,287 )
MSCI Russia     516,768,114       61,383,003       (63,456,073 )     (2,073,070 )
MSCI South Africa     471,394,469       11,435,526       (188,558,824 )     (177,123,298 )
MSCI Turkey     480,965,294       4,867,301       (202,895,845 )     (198,028,544 )
MSCI USA Equal Weighted     327,311,199       34,595,477       (25,688,593 )     8,906,884  

 

9. LINE OF CREDIT

 

The iShares MSCI Colombia ETF, along with certain other iShares funds, is a party to a $300 million credit agreement with State Street Bank and Trust Company, which expires on October 21, 2020. The line of credit may be used for temporary or emergency purposes, including redemptions, settlement of trades and rebalancing of portfolio holdings. The credit agreement has the following terms: a commitment fee of 0.20% per annum on the unused portion of the credit agreement and interest at a rate equal to the higher of (a) the one-month LIBOR (not less than zero) plus 1.00% per annum or (b) the U.S. Federal Funds rate (not less than zero) plus 1.00% per annum on amounts borrowed. The commitment fee is allocated to each fund participating in the credit agreement based on each fund’s pro-rata share of the aggregate average daily value of assets invested in local securities of certain foreign markets.

 

The Funds did not borrow under the credit agreement during the six months ended February 29, 2020.

 

10. PRINCIPAL RISKS

 

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

 

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

 

Market Risk: Market risk arises mainly from uncertainty about future values of financial instruments influenced by price, currency and interest rate movements. It represents the potential loss a fund may suffer through holding market positions in the face of market movements. A fund is exposed to market risk by its investment in equity, fixed income and/or financial derivative instruments or by its investment in underlying funds. The fair value of securities held by a fund may decline due to general market conditions, economic trends or events that are not specifically related to the issuers of the securities including local, regional or global political, social or economic instability or to factors that affect a particular industry or group of industries. 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. The extent of a fund’s exposure to market risk is the market value of the investments held as shown in the fund’s schedule of investments.

 

Investing in the securities of non-U.S. issuers involves certain considerations and risks not typically associated with securities of U.S. issuers. Such risks include, but are not limited to: differences in accounting, auditing and financial reporting standards; more substantial governmental involvement in the economy; higher inflation rates, greater social, economic and political uncertainties; possible nationalization or expropriation of assets; less availability of public information about issuers; imposition of withholding or other taxes; higher transaction and custody costs and delays in settlement procedures; and lower level of regulation of the securities markets and issuers. Non-U.S. securities may be less liquid, more difficult to value, and have greater price volatility due to exchange rate fluctuations. These and other risks are heightened for investments in issuers from countries with less developed capital markets.

 

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 impact of the pandemic may be short term or may last for an extended period of time.

 

Credit Risk: Credit risk is the risk that an issuer or guarantor of debt instruments or the counterparty to a financial transaction, including derivatives contracts, repurchase agreements or loans of portfolio securities, is unable or unwilling to make timely interest and/or principal payments or to otherwise honor its obligations. BFA and its affiliates manage counterparty credit risk by entering into transactions only with counterparties that they believe have the financial resources to honor their obligations and by

 

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Notes to Financial Statements (unaudited) (continued)

 

monitoring the financial stability of those counterparties. Financial assets, which potentially expose a fund to issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of a fund’s exposure to credit and counterparty risks with respect to those financial assets is approximated by their value recorded in its statement of assets and liabilities.

 

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

 

When a fund concentrates its investments in issuers located in a single country or a limited number of countries, it assumes the risk that economic, regulatory, political and social conditions in that country or those countries may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio.

 

The United States and the European Union, along with the regulatory bodies of a number of countries including Japan, Australia, Norway, Switzerland and Canada, have imposed economic sanctions, which can consist of prohibiting certain securities trades, prohibiting certain private transactions in the energy sector, asset freezes and prohibition of all business, on certain Russian individuals and Russian corporate entities. Broader sanctions on Russia could also be instituted. These sanctions, or even the threat of further sanctions, may result in the decline of the value and liquidity of Russian securities, a weakening of the ruble or other adverse consequences to the Russian economy, and may negatively impact a fund. Current or future sanctions may result in Russia taking counter measures or retaliatory actions, which may further impair the value and liquidity of Russian securities. These retaliatory measures may include the immediate freeze of Russian assets held by a fund.

 

When a fund concentrates its investments in securities within a single or limited number of market sectors, it assumes the risk that economic, regulatory, political and social conditions affecting such sectors may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio.

 

11. CAPITAL SHARE TRANSACTIONS

 

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

 

Transactions in capital shares were as follows:

 

    Six Months Ended     Year Ended  
    02/29/20     08/31/19  
iShares ETF     Shares       Amount       Shares       Amount  
MSCI Brazil                                
Shares sold     32,650,000     $ 1,450,867,480       39,900,000     $ 1,597,335,848  
Shares redeemed     (250,000 )     (10,446,203 )     (11,100,000 )     (450,367,072 )
Net increase     32,400,000     $ 1,440,421,277       28,800,000     $ 1,146,968,776  
                                 
MSCI Chile                                
Shares sold     8,700,000     $ 280,414,308       6,150,000     $ 266,264,905  
Shares redeemed     (950,000 )     (32,030,264 )     (5,950,000 )     (253,990,967 )
Net increase     7,750,000     $ 248,384,044       200,000     $ 12,273,938  
                                 
MSCI Colombia                                
Shares sold     200,000     $ 2,656,091       1,050,000     $ 13,424,743  
Shares redeemed     (450,000 )     (6,092,409 )     (1,000,000 )     (13,023,149 )
Net increase(decrease)     (250,000 )   $ (3,436,318 )     50,000     $ 401,594  
                                 
MSCI Israel                                
Shares sold         $ 114       900,000     $ 48,475,728  
Shares redeemed     (100,000 )     (5,577,620 )     (900,000 )     (48,861,180 )
Net decrease     (100,000 )   $ (5,577,506 )         $ (385,452 )
                                 
MSCI Russia                                
Shares sold     950,000     $ 40,668,118       3,000,000     $ 102,646,729  
Shares redeemed     (3,200,000 )     (132,313,217 )     (1,150,000 )     (39,850,012 )
Net increase(decrease)     (2,250,000 )   $ (91,645,099 )     1,850,000     $ 62,796,717  
                                 
MSCI South Africa                                
Shares sold     1,200,000     $ 57,776,241       8,400,000     $ 448,398,024  
Shares redeemed     (1,700,000 )     (76,572,633 )     (7,400,000 )     (385,581,253 )
Net increase(decrease)     (500,000 )   $ (18,796,392 )     1,000,000     $ 62,816,771  
                                 
MSCI Turkey                                
Shares sold     2,400,000     $ 61,671,522       6,500,000     $ 152,434,904  
Shares redeemed     (4,300,000 )     (112,410,964 )     (12,700,000 )     (314,093,801 )
Net decrease     (1,900,000 )   $ (50,739,442 )     (6,200,000 )   $ (161,658,897 )

 

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Notes to Financial Statements (unaudited) (continued)

 

    Six Months Ended     Year Ended  
      02/29/20     08/31/19  
iShares ETF     Shares       Amount       Shares       Amount  
MSCI USA Equal Weighted                                
Shares sold     750,000     45,752,331       2,450,000     $ 138,103,245  
Shares redeemed     (400,000 )     (24,052,728 )     (400,000 )     (22,826,092 )
Net increase     350,000     $ 21,699,603       2,050,000     $ 115,277,153  

 

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

 

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

 

12. LEGAL PROCEEDINGS

 

On June 16, 2016, investors in certain iShares funds (iShares Core S&P Small-Cap ETF, iShares Russell 1000 Growth ETF, iShares Core S&P 500 ETF, iShares Russell Mid-Cap Growth ETF, iShares Russell Mid-Cap ETF, iShares Russell Mid-Cap Value ETF, iShares Select Dividend ETF, iShares Morningstar Mid-Cap ETF, iShares Morningstar Large-Cap ETF, iShares U.S. Aerospace & Defense ETF and iShares Preferred and Income Securities ETF) filed a class action lawsuit against iShares Trust, BlackRock, Inc. and certain of its advisory affiliates, and certain directors/trustees and officers of the Funds (collectively, “Defendants”) in California State Court. The lawsuit alleges the Defendants violated federal securities laws by failing to adequately disclose in the prospectuses issued by the funds noted above the risks of using stop-loss orders in the event of a ‘flash crash’, such as the one that occurred on May 6, 2010. On September 18, 2017, the court issued a Statement of Decision holding that the Plaintiffs lack standing to assert their claims. On October 11, 2017, the court entered final judgment dismissing all of the Plaintiffs’ claims with prejudice. In an opinion dated January 23, 2020, the California Court of Appeal affirmed the dismissal of Plaintiffs’ claims. On March 3, 2020, plaintiffs filed a petition for review by the California Supreme Court.

 

13. SUBSEQUENT EVENTS

 

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

 

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Statement Regarding Liquidity Risk Management Program

 

The Securities and Exchange Commission adopted Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”) to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders.

 

The Board of Directors (the “Board”) of iShares MSCI Brazil ETF, iShares MSCI Chile ETF, iShares MSCI Colombia ETF, iShares MSCI Israel ETF, iShares MSCI Russia ETF, iShares MSCI South Africa ETF, iShares MSCI Turkey ETF, iShares MSCI USA Equal Weighted ETF met on December 3, 2019 (the “Meeting”) to review the liquidity risk management program (the “Program”) applicable to the iShares Funds (each, a “Fund”) pursuant to the Liquidity Rule. The Board has appointed BlackRock Fund Advisors (“BlackRock”), the investment adviser to the Funds, as the program administrator for each Fund’s Program, as applicable. BlackRock has delegated oversight of the Program to the 40Act Liquidity Risk Management Committee (the “Committee”).At the Meeting, the Committee, on behalf of BlackRock, provided the Board with a report that addressed the operation of the Program and assessed its adequacy and effectiveness of implementation, including the operation of each Fund’s Highly Liquid Investment Minimum (“HLIM”) where applicable, and any material changes to the Program (the “Report”). The Report covered the period from December 1, 2018 through September 30, 2019 (the “Program Reporting Period”).

 

The Report described the Program’s liquidity classification methodology for categorizing a Fund’s investments (including derivative transactions) into one of four liquidity buckets. It also described BlackRock’s methodology in establishing a Fund’s HLIM and noted that the Committee reviews and ratifies the HLIM assigned to each Fund no less frequently than annually.

 

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

 

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

 

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

 

c) Holdings of cash and cash equivalents, as well as borrowing arrangements. The Committee considered that ETFs generally do not hold more than de minimus amounts of cash. Funds may borrow for temporary or emergency purposes, including to meet payments due from redemptions or to facilitate the settlement of securities or other transactions.

 

d) The relationship between an ETF’s portfolio liquidity and the way in which, and the prices and spreads at which, ETF shares trade, including the efficiency of the arbitrage function and the level of active participation by market participants, including authorized participants. The Committee monitored the prevailing bid/ask spread and the ETF price premium (or discount) to NAV for all ETFs and reviewed any persistent deviations from long-term averages.

 

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

 

There were no material changes to the Program during the Program Reporting Period. The Report provided to the Board stated that the Committee concluded that based on the operation of the functions, as described in the Report, the Program is operating as intended and is effective in implementing the requirements of the Liquidity Rule.

 

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Supplemental Information (unaudited)

 

Section 19(a) Notices

 

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

 

    Total Cumulative Distributions     % Breakdown of the Total Cumulative  
      for the Fiscal Year-to-Date       Distributions for the Fiscal Year-to-Date  
      Net                               Net                          
      Investment       Net Realized       Return of       Total Per       Investment       Net Realized       Return of       Total Per  
iShares ETF     Income       Capital Gains       Capital       Share       Income       Capital Gains       Capital       Share  
MSCI Brazil(a)   $ 0.499868     $     $ 0.174805     $ 0.674673       74 %     %     26 %     100 %
MSCI Chile(a)     0.034549             0.039658       0.074207       47             53       100  
MSCI Colombia(a)     0.073655             0.109364       0.183019       40             60       100  
MSCI Israel(a)     0.893021             0.119275       1.012296       88             12       100  
MSCI Russia(a)     1.721038             0.774297       2.495335       69             31       100  
MSCI Turkey(a)     0.215433             0.085065       0.300498       72             28       100  
MSCI USA Equal Weighted(a)     0.455109             0.065021       0.520130       87             13       100  

 

(a) The Fund estimates that it has distributed more than its net investment income and net realized capital gains; therefore, a portion of the distribution may be a return of capital. A return of capital may occur, for example, when some or all of the shareholder's investment in the Fund is returned to the shareholder. A return of capital does not necessarily reflect the Fund's investment performance and should not be confused with "yield" or "income". When distributions exceed total return performance, the difference will incrementally reduce the Fund's net asset value per share.

 

S u p p l e m e n t a l   I n f o r m a t i o n

65

 

 

 

 

General Information

 

Electronic Delivery

 

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

 

To enroll in electronic delivery:

 

Go to icsdelivery.com.

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

 

Householding

 

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

 

Availability of Quarterly Schedule of Investments

 

The iShares Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT, and for reporting periods ended prior to March 31, 2019, filed such information on Form N-Q. The iShares Funds' Forms N-Q are available on the SEC’s website at sec.gov. The iShares Funds also disclose their complete schedule of portfolio holdings on a daily basis on the iShares website at iShares.com.

 

Availability of Proxy Voting Policies and Proxy Voting Records

 

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

 

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Glossary of Terms Used in this Report

 

Portfolio Abbreviations - Equity

 

ADR American Depositary Receipt
   
GDR Global Depositary Receipt
   
NVS Non-Voting Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

G l o s s a r y   o f   T e r m s   U s e d   i n   t h i s   R e p o r t

67

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Want to know more?

iShares.com | 1-800-474-2737

 

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

 

Investing involves risk, including possible loss of principal.

 

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

 

The iShares Funds are not sponsored, endorsed, issued, sold or promoted by MSCI Inc., nor does this company make any representation regarding the advisability of investing in the iShares Funds. BlackRock is not affiliated with the company listed above.

 

©2020 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.

 

iS-SAR-804-0220

 

   

  

 

  FEBRUARY 29, 2020

 

  

2020 Semi-Annual Report
(Unaudited)

 

iShares, Inc.
●  iShares MSCI Australia ETF | EWA | NYSE Arca
●  iShares MSCI Canada ETF | EWC | NYSE Arca
●  iShares MSCI Japan ETF | EWJ | NYSE Arca
●  iShares MSCI Mexico ETF | EWW | NYSE Arca
●  iShares MSCI South Korea ETF | EWY | NYSE Arca

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

You may elect to receive all future reports in paper free of charge. If you hold accounts through a financial intermediary, you can follow the instructions included with this disclosure, if applicable, or contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. Please note that not all financial intermediaries may offer this service. Your election to receive reports in paper will apply to all funds held with your financial intermediary.

 

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive electronic delivery of shareholder reports and other communications by contacting your financial intermediary. Please note that not all financial intermediaries may offer this service. 

 

 

 

 

Fund Summary as of February 29, 2020 iShares® MSCI Australia ETF

 

Investment Objective

 

The iShares MSCI Australia ETF (the “Fund”) seeks to track the investment results of an index composed ofAustralian equities, as represented by the MSCIAustralia Index (the "Index"). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

 

Performance

            Average Annual Total Returns     Cumulative Total Returns  
    6 Months     1 Year     5 Years     10 Years     1 Year     5 Years     10 Years  
Fund NAV     (5.01 )%     (1.57 )%     1.51 %     3.82 %     (1.57 )%     7.76 %     45.45 %
Fund Market     (5.20 )     (1.49 )     1.46       3.80       (1.49 )     7.51       45.26  
Index     (4.83 )     (1.17 )     1.87       4.21       (1.17 )     9.71       51.09  

 

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 8 for more information.

 

Expense Example

Actual     Hypothetical 5% Return        
Beginning
Account Value (09/01/19)
    Ending
Account Value (02/29/20)
(a)   Expenses
Paid During
the Period
    Beginning
Account Value (09/01/19)
    Ending
Account Value (02/29/20)
    Expenses
Paid During
the Period
(a)   Annualized Expense
Ratio
 
$ 1,000.00     $ 949.90     $ 2.42     $ 1,000.00     $ 1,022.40     $ 2.51       0.50 %

 

(a) Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 8 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR  
Sector   Percent of
Total Investments
(a)
Financials     36.5 %
Materials     15.6  
Health Care     12.7  
Real Estate     7.7  
Industrials     6.5  
Consumer Discretionary     5.8  
Consumer Staples     5.7  
Energy     5.2  
Utilities     2.0  
Communication Services     1.6  
Information Technology     0.7  

 

(a) Excludes money market funds
TEN LARGEST HOLDINGS  
Security     Percent of
Total Investments
(a)
Commonwealth Bank of Australia     10.4 %
CSL Ltd.     10.1  
BHP Group Ltd.     7.1  
Westpac Banking Corp.     6.1  
National Australia Bank Ltd.     5.2  
Australia & New Zealand Banking Group Ltd.     5.0  
Woolworths Group Ltd.     3.5  
Wesfarmers Ltd.     3.3  
Macquarie Group Ltd.     3.3  
Transurban Group     2.9  

 

F u n d   S u m m a r y 3

 

 

 

Fund Summary as of February 29, 2020 iShares® MSCI Canada ETF

 

Investment Objective

 

The iShares MSCICanada ETF (the “Fund”) seeks to track the investment results of an index composed of Canadian equities, as represented by the MSCI Canada Custom Capped Index (the "Index"). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

 

Performance

 

            Average Annual Total Returns     Cumulative Total Returns  
      6 Months     1 Year     5 Years     10 Years     1 Year     5 Years     10 Years  
Fund NAV     (1.04 )%     1.26 %     1.80 %     2.81 %     1.26 %     9.32 %     31.88 %
Fund Market     (0.64 )     1.45       1.85       2.79       1.45       9.60       31.67  
Index     (0.97 )     1.36       1.95       3.00       1.36       10.16       34.35  

 

Index performance through August 31, 2017 reflects the performance of the MSCI Canada Index. Index performance beginning on September 1, 2017 reflects the performance of the MSCI Canada Custom Capped Index.

 

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 8 for more information.

 

Expense Example

Actual     Hypothetical 5% Return        
Beginning
Account Value (09/01/19)
    Ending
Account Value (02/29/20)
    Expenses
Paid During
the Period
(a)   Beginning
Account Value (09/01/19)
    Ending
Account Value (02/29/20)
    Expenses
Paid During
the Period
(a)   Annualized Expense
Ratio
 
$ 1,000.00     $ 989.60     $ 2.47     $ 1,000.00     $ 1,022.40     $ 2.51       0.50 %

 

(a) Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 8 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR  
Sector     Percent of
Total Investments
(a)
Financials     38.2 %
Energy     18.4  
Materials     10.0  
Industrials     9.2  
Information Technology     7.2  
Consumer Staples     4.4  
Consumer Discretionary     3.9  
Utilities     3.8  
Communication Services     3.1  
Health Care     1.0  
Real Estate     0.8  

 

(a) Excludes money market funds.

 

TEN LARGEST HOLDINGS  
Security     Percent of
Total Investments
(a)
Royal Bank of Canada     7.7 %
Toronto-Dominion Bank (The)     6.7  
Enbridge Inc.     5.4  
Bank of Nova Scotia (The)     4.6  
Canadian National Railway Co.     4.4  
Brookfield Asset Management Inc., Class A     3.8  
TC Energy Corp.     3.5  
Shopify Inc., Class A     3.5  
Bank of Montreal     3.1  
Suncor Energy Inc.     3.0  

 

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Fund Summary as of February 29, 2020 iShares® MSCI Japan ETF

 

Investment Objective

 

The iShares MSCI Japan ETF (the “Fund”) seeks to track the investment results of an index composed of Japanese equities, as represented by the MSCI Japan Index (the "Index"). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

 

Performance

 

            Average Annual Total Returns     Cumulative Total Returns  
    6 Months     1 Year     5 Years     10 Years     1 Year     5 Years     10 Years  
Fund NAV     0.19 %     0.69 %     3.31 %     4.66 %     0.69 %     17.70 %     57.73 %
Fund Market     (0.59 )     (0.43 )     3.08       4.57       (0.43 )     16.36       56.28  
Index     0.37       1.07       3.65       5.11       1.07       19.66       64.59  

 

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 8 for more information.

 

Expense Example

 

Actual     Hypothetical 5% Return        
Beginning
Account Value (09/01/19)
    Ending
Account Value (02/29/20)
    Expenses
Paid During
the Period
(a)   Beginning
Account Value (09/01/19)
    Ending
Account Value (02/29/20)
    Expenses
Paid During
the Period
(a)   Annualized Expense Ratio  
$ 1,000.00     $ 1,001.90     $ 2.49     $ 1,000.00     $ 1,022.40     $ 2.51       0.50 %

 

(a) Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 8 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR  
Sector     Percent of
Total Investments
(a)
Industrials     20.5 %
Consumer Discretionary     18.2  
Information Technology     11.8  
Financials     10.7  
Health Care     10.2  
Communication Services     9.1  
Consumer Staples     7.7  
Materials     5.1  
Real Estate.     4.3  
Utilities     1.6  
Energy     0.8  

 

(a) Excludes money market funds.

 

TEN LARGEST HOLDINGS  
Security     Percent of
Total Investments
(a)
Toyota Motor Corp.     4.6 %
Sony Corp.     2.4  
SoftBank Group Corp.     2.2  
Mitsubishi UFJ Financial Group Inc.     1.9  
Keyence Corp.     1.8  
Takeda Pharmaceutical Co. Ltd.     1.6  
KDDI Corp.     1.5  
Recruit Holdings Co. Ltd.     1.5  
Honda Motor Co. Ltd.     1.3  
Sumitomo Mitsui Financial Group Inc.     1.3  

 

F u n d   S u m m a r y 5

 

 

 

Fund Summary as of February 29, 2020 iShares® MSCI Mexico ETF

 

Investment Objective

 

The iShares MSCI Mexico ETF (the “Fund”) seeks to track the investment results of a broad-based index composed of Mexican equities, as represented by the MSCI Mexico IMI 25/50 Index (the "Index"). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

 

Performance

 

            Average Annual Total Returns     Cumulative Total Returns  
    6 Months     1 Year     5 Years     10 Years     1 Year     5 Years     10 Years  
Fund NAV     0.27 %     (2.70 )%     (5.23 )%     0.10 %     (2.70 )%     (23.56 )%     0.99 %
Fund Market     1.68       (1.13 )     (4.94 )     0.28       (1.13 )     (22.39 )     2.80  
Index     0.48       (2.38 )     (4.96 )     0.20       (2.38 )     (22.45 )     1.98  

 

Index performance through February 11, 2013 reflects the performance of the MSCI Mexico Investable Market Index. Index performance beginning on February 12, 2013 reflects the performance of the MSCI Mexico IMI 25/50 Index.

 

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 8 for more information.

 

Expense Example

 

Actual     Hypothetical 5% Return        
Beginning
Account Value (09/01/19)
    Ending
Account Value (02/29/20)
    Expenses
Paid During
the Period
(a)   Beginning
Account Value (09/01/19)
    Ending
Account Value (02/29/20)
    Expenses
Paid During
the Period
(a)   Annualized Expense
Ratio
 
$ 1,000.00     $ 1,002.70     $ 2.49     $ 1,000.00     $ 1,022.40     $ 2.51       0.50 %

 

(a) Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 8 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR  
Sector     Percent of
Total Investments
(a)
Consumer Staples     28.1 %
Communication Services     22.0  
Financials     15.4  
Industrials     11.9  
Materials     10.8  
Real Estate     7.1  
Consumer Discretionary     2.3  
Utilities     1.7  
Health Care     0.7  

 

(a) Excludes money market funds.

 

TEN LARGEST HOLDINGS  
Security     Percent of
Total Investments
(a)
America Movil SAB de CV, Series L     17.0 %
Fomento Economico Mexicano SAB de CV     9.7  
Wal-Mart de Mexico SAB de CV     9.0  
Grupo Financiero Banorte SAB de CV, Class O     8.6  
Grupo Mexico SAB de CV, Series B     4.3  
Cemex SAB de CV     3.4  
Fibra Uno Administracion SA de CV     3.3  
Grupo Televisa SAB     3.1  
Grupo Aeroportuario del Pacifico SAB de CV, Series B     2.8  
Grupo Aeroportuario del Sureste SAB de CV, Class B     2.4  

 

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Fund Summary as of February 29, 2020 iShares® MSCI South Korea ETF

 

Investment Objective

 

The iShares MSCI South Korea ETF (the “Fund”) seeks to track the investment results of an index composed of South Korean equities, as represented by the MSCI Korea 25/50 Index (the "Index"). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

 

Performance

 

            Average Annual Total Returns     Cumulative Total Returns  
      6 Months       1 Year       5 Years       10 Years       1 Year       5 Years       10 Years  
Fund NAV     3.05 %     (12.99 )%     0.86 %     3.26 %     (12.99 )%     4.40 %     37.78 %
Fund Market     5.39       (10.81 )     1.41       3.46       (10.81 )     7.26       40.51  
Index     3.13       (12.77 )     1.25       3.79       (12.77 )     6.39       45.08  

 

Index performance through February 11, 2013 reflects the performance of the MSCI Korea Index. Index performance beginning on February 12, 2013 reflects the performance of the MSCI Korea 25/50 Index.

 

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 8 for more information.

 

 

Expense Example

 

Actual     Hypothetical 5% Return        
Beginning
Account Value (09/01/19)
    Ending
Account Value (02/29/20)
    Expenses
Paid During
the Period
(a)   Beginning
Account Value (09/01/19)
    Ending
Account Value (02/29/20)
    Expenses
Paid During
the Period
(a)   Annualized Expense
Ratio
 
$ 1,000.00     $ 1,030.50     $ 2.93     $ 1,000.00     $ 1,022.00     $ 2.92       0.58 %

 

(a) Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 8 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR  
Sector     Percent of
Total Investments
(a)
Information Technology     34.8 %
Consumer Discretionary     12.1  
Financials     11.9  
Industrials     10.2  
Communication Services     8.5  
Materials     7.7  
Consumer Staples     6.6  
Health Care     5.3  
Energy     1.9  
Utilities     1.0  

 

(a) Excludes money market funds.

 

TEN LARGEST HOLDINGS  
Security     Percent of
Total Investments
(a)
Samsung Electronics Co. Ltd.     22.6 %
SK Hynix Inc.     6.7  
NAVER Corp.     3.4  
Hyundai Motor Co.     2.5  
LG Chem Ltd.     2.4  
Samsung SDI Co. Ltd.     2.3  
Celltrion Inc.     2.2  
KB Financial Group Inc.     2.2  
POSCO     2.1  
Shinhan Financial Group Co. Ltd.     2.1  

 

F u n d   S u m m a r y 7

 

 

 

About Fund Performance

 

Past performance is no guarantee of future results. Financial markets have experienced extreme volatility and trading in many instruments has been disrupted. These circumstances may continue for an extended period of time, and may continue to affect adversely the value and liquidity of the fund's investments. As a result, current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at iShares.com. Performance results assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. The investment return and principal value of shares will vary with changes in market conditions. Shares may be worth more or less than their original cost when they are redeemed or sold in the market. Performance for certain funds may reflect a waiver of a portion of investment advisory fees. Without such a waiver, performance would have been lower.

 

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

 

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

 

Shareholder Expenses

 

As a shareholder of your Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares and (2) ongoing costs, including management fees and other fund expenses. The expense example, which is based on an investment of $1,000 invested at the beginning of the period (or from the commencement of operations if less than 6 months) and held through the end of the period, is intended to help you understand your ongoing costs (in dollars and cents) of investing in your Fund and to compare these costs with the ongoing costs of investing in other funds.

 

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

 

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

 

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

 

8 2 0 2 0   i S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

Schedule of Investments (unaudited) iShares® MSCI Australia ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
                 
Common Stocks                
                 
Airlines — 0.3%                
Qantas Airways Ltd.     1,044,079   $ 3,722,629  
                 
Banks — 26.8%                
Australia & New Zealand Banking Group Ltd.     4,063,291       65,049,794  
Bendigo & Adelaide Bank Ltd.     748,480       4,434,932  
Commonwealth Bank of Australia     2,537,589       133,801,096  
National Australia Bank Ltd.     4,132,880       66,883,317  
Westpac Banking Corp.     5,122,276       78,073,155  
              348,242,294  
Beverages — 1.0%                
Coca-Cola Amatil Ltd.     725,797       5,376,832  
Treasury Wine Estates Ltd.     1,037,122       7,375,588  
              12,752,420  
Biotechnology — 10.0%                
CSL Ltd.     650,775       129,837,037  
                 
Capital Markets — 4.8%                
ASX Ltd.     277,103       13,246,011  
Macquarie Group Ltd.     483,678       42,046,916  
Magellan Financial Group Ltd.     182,615       6,565,238  
              61,858,165  
Chemicals — 0.9%                
Incitec Pivot Ltd.     2,299,721       4,047,893  
Orica Ltd.     581,352       7,421,568  
              11,469,461  
Commercial Services & Supplies — 1.3%                
Brambles Ltd.     2,226,888       17,171,998  
                 
Construction & Engineering — 0.2%                
CIMIC Group Ltd.     139,761       2,148,244  
                 
Construction Materials — 1.3%                
Boral Ltd.     1,673,704       4,877,624  
James Hardie Industries PLC     637,106       11,596,151  
              16,473,775  
Diversified Financial Services — 0.8%                
AMP Ltd.(a)     4,931,666       5,325,982  
Challenger Ltd.     788,296       4,620,027  
              9,946,009  
Diversified Telecommunication Services — 1.2%                
Telstra Corp. Ltd.     5,961,444       13,183,686  
TPG Telecom Ltd.     531,129       2,578,614  
              15,762,300  
Electric Utilities — 0.2%                
AusNet Services     2,679,053       2,927,806  
                 
Energy Equipment & Services — 0.3%                
Worley Ltd.     483,155       3,900,157  
                 
Equity Real Estate Investment Trusts (REITs) — 6.9%                
BGP Holdings PLC(a)(b)     18,888,372       207  
Dexus     1,571,003       12,316,913  
Goodman Group     2,357,247       22,767,125  
GPT Group (The)     2,789,694       10,396,225  
Mirvac Group     5,633,890       11,042,648  
Scentre Group     7,525,810       16,788,838  
Stockland     3,414,702       10,369,671  

 

Security   Shares     Value  
                 
Equity Real Estate Investment Trusts (REITs) (continued)                
Vicinity Centres     4,591,452     $ 6,394,331  
              90,075,958  
Food & Staples Retailing — 4.6%                
Coles Group Ltd.     1,623,452       14,873,899  
Woolworths Group Ltd.     1,807,211       45,209,725  
              60,083,624  
Gas Utilities — 0.9%                
APA Group     1,689,786       11,701,116  
                 
Health Care Equipment & Supplies — 0.8%          
Cochlear Ltd.     82,786       11,080,379  
                 
Health Care Providers & Services — 1.7%          
Ramsay Health Care Ltd.     231,524       10,152,198  
Sonic Healthcare Ltd.     648,585       12,043,443  
              22,195,641  
Hotels, Restaurants & Leisure — 2.3%                
Aristocrat Leisure Ltd.     826,047       17,634,178  
Crown Resorts Ltd.     533,401       3,494,128  
Flight Centre Travel Group Ltd.     80,837       1,700,143  
Tabcorp Holdings Ltd.     2,891,884       7,066,614  
              29,895,063  
Insurance — 3.9%                
Insurance Australia Group Ltd.     3,322,888       13,668,714  
Medibank Pvt Ltd.     3,944,089       7,196,551  
QBE Insurance Group Ltd.     1,877,178       16,448,118  
Suncorp Group Ltd.     1,804,328       13,192,279  
              50,505,662  
Interactive Media & Services — 0.4%                
REA Group Ltd.     76,230       4,832,358  
                 
IT Services — 0.5%                
Computershare Ltd.     699,840       6,912,717  
                 
Metals & Mining — 13.3%                
Alumina Ltd.     3,498,376       4,375,820  
BHP Group Ltd.     4,222,791       91,480,841  
BlueScope Steel Ltd.     726,693       5,538,087  
Fortescue Metals Group Ltd.     1,994,020       12,959,293  
Newcrest Mining Ltd.     1,104,352       18,726,411  
Rio Tinto Ltd.     531,794       29,922,625  
South32 Ltd.     7,081,632       10,136,257  
              173,139,334  
Multi-Utilities — 0.9%                
AGL Energy Ltd.     923,860       11,400,906  
                 
Multiline Retail — 3.4%                
Harvey Norman Holdings Ltd.     795,541       1,902,952  
Wesfarmers Ltd.     1,625,337       42,598,593  
              44,501,545  
Oil, Gas & Consumable Fuels — 4.9%                
Caltex Australia Ltd.     357,647       7,540,387  
Oil Search Ltd.     1,965,269       6,956,417  
Origin Energy Ltd.     2,534,241       11,404,983  
Santos Ltd.     2,532,865       11,153,830  
Washington H Soul Pattinson & Co. Ltd.     171,307       2,155,987  
Woodside Petroleum Ltd.     1,351,235       24,324,145  
              63,535,749  
Professional Services — 0.5%                
Seek Ltd.     478,934       6,385,832  

 

S c h e d u l e   o f   I n v e s t m e n t s 9

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI Australia ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
                 
Real Estate Management & Development — 0.7%                
Lendlease Group     807,901   $ 9,183,363  
                 
Road & Rail — 0.7%                
Aurizon Holdings Ltd.     2,812,661       8,759,026  
                 
Software — 0.1%                
WiseTech Global Ltd.(c)     207,454       2,019,715  
                 
Transportation Infrastructure — 3.5%                
Sydney Airport     1,584,951       7,940,140  
Transurban Group     3,919,528       37,527,662  
              45,467,802  
Total Common Stocks — 99.1%                
(Cost: $1,633,601,912)           1,287,888,085  
                 
Short-Term Investments                
                 
Money Market Funds — 0.1%                
BlackRock Cash Funds: Institutional, SL Agency Shares, 1.74%(d)(e)(f)     9,108       9,114  

 

Security   Shares     Value  
                 
Money Market Funds (continued)                
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52%(d)(e)     572,000     $ 572,000  
              581,114  
Total Short-Term Investments — 0.1%          
(Cost: $581,112)             581,114  
                 
Total Investments in Securities — 99.2%          
(Cost: $1,634,183,024)             1,288,469,199  
                 
Other Assets, Less Liabilities — 0.8%             10,584,698  
                 
Net Assets — 100.0%           $ 1,299,053,897  

 

(a) Non-income producing security.
(b) Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.
(c) All or a portion of this security is on loan.
(d) Affiliate of the Fund.
(e) Annualized 7-day yield as of period-end.
(f) All or a portion of this security was purchased with cash collateral received from loaned securities.

 

Affiliates

 

Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940Act, were as follows:

                                           
Affiliated Issuer   Shares
Held at 08/31/19
    Net Activity     Shares
Held at 02/29/20
    Value at 02/29/20     Income     Net Realized Gain (Loss) (a)   Change in Unrealized Appreciation (Depreciation)  
BlackRock Cash Funds: Institutional, SL Agency Shares           9,108       9,108     $ 9,114     $ 1,441 (b)   $ 332     $ 2  
BlackRock Cash Funds: Treasury, SL Agency Shares     603,000       (31,000 )     572,000       572,000       8,844              
                            $ 581,114     $ 10,285     $ 332     $ 2  

 

(a) Includes realized capital gain distributions from an affiliated fund, if any.
(b) Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

 

Futures Contracts

 

Description   Number of
Contracts
    Expiration
Date
  Notional
Amount
(000)
    Value/
Unrealized Appreciation
(Depreciation)
 
Long Contracts                            
ASX SPI 200 Index     108     03/19/20   $ 11,096     $ (830,837 )

 

Derivative Financial Instruments Categorized by Risk Exposure

 

As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

       
    Equity
Contracts
 
Liabilities — Derivative Financial Instruments      
Futures contracts      
Unrealized depreciation on futures contracts(a)   $ 830,837  

 

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

 

10 2 0 2 0   i S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI Australia ETF
February 29, 2020  

 

For the six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

    Equity
Contracts
 
Net Realized Gain (Loss) from:      
Futures contracts   $ 454,800  
         
Net Change in Unrealized Appreciation (Depreciation) on:        
Futures contracts   $ (937,733 )

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:      
Average notional value of contracts — long   $ 13,032,157  

 

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

 

Fair Value Measurements

 

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

 

The following table summarizes the value of the Fund's investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund's investments into major categories is disclosed in the Schedule of Investments above.

 

    Level 1     Level 2     Level 3     Total  
Investments                        
Assets                        
Common Stocks   $ 1,287,887,878     $     $ 207     $ 1,287,888,085  
Money Market Funds     581,114                   581,114  
    $ 1,288,468,992     $     $ 207     $ 1,288,469,199  
Derivative financial instruments(a)                                
Liabilities                                
Futures Contracts   $ (830,837 )   $     $     $ (830,837 )

 

(a) Shown at the unrealized appreciation (depreciation) on the contracts.

 

See notes to financial statements.

 

S c h e d u l e   o f   I n v e s t m e n t s 11

 

 

 

Schedule of Investments (unaudited) iShares® MSCI Canada ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
Common Stocks                
                 
Aerospace & Defense — 0.6%                
Bombardier Inc., Class B(a)     3,663,918     $ 2,620,301  
CAE Inc.     458,382       12,262,449  
              14,882,750  
Airlines — 0.2%                
Air Canada(a)     222,003       5,664,397  
                 
Auto Components — 0.9%                
Magna International Inc.     499,984       22,754,142  
                 
Banks — 25.7%                
Bank of Montreal     1,098,741       74,657,255  
Bank of Nova Scotia (The)     2,095,684       109,627,840  
Canadian Imperial Bank of Commerce     765,643       58,269,519  
National Bank of Canada     575,604       29,917,601  
Royal Bank of Canada     2,465,921       183,371,128  
Toronto-Dominion Bank (The)     3,115,404       160,232,050  
              616,075,393  
Capital Markets — 4.2%                
Brookfield Asset Management Inc., Class A     1,531,034       91,552,948  
CI Financial Corp.     378,592       6,286,599  
IGM Financial Inc.     145,533       3,880,229  
              101,719,776  
Chemicals — 1.8%                
Methanex Corp.     111,176       3,200,239  
Nutrien Ltd.     985,110       39,812,431  
              43,012,670  
Construction & Engineering — 0.5%                
WSP Global Inc.     182,596       12,034,319  
                 
Containers & Packaging — 0.4%                
CCL Industries Inc., Class B, NVS     257,851       8,511,475  
                 
Diversified Financial Services — 0.3%                
Onex Corp.     146,870       8,245,333  
                 
Diversified Telecommunication Services — 1.0%                
BCE Inc.     264,863       11,631,597  
TELUS Corp.     342,223       12,349,448  
              23,981,045  
Electric Utilities — 2.5%                
Emera Inc.     413,767       17,434,098  
Fortis Inc.     753,502       30,491,473  
Hydro One Ltd.(b)     568,916       11,417,735  
              59,343,306  
Equity Real Estate Investment Trusts (REITs) — 0.8%                
Canadian Apartment Properties REIT     142,724       5,967,965  
First Capital Real Estate Investment Trust     188,713       2,814,493  
H&R Real Estate Investment Trust     247,750       3,582,395  
RioCan REIT     267,813       5,001,730  
SmartCentres Real Estate Investment Trust     127,495       2,733,494  
              20,100,077  
Food & Staples Retailing — 3.9%                
Alimentation Couche-Tard Inc., Class B     1,496,768       45,448,850  
Empire Co. Ltd., Class A, NVS     299,070       6,681,647  
George Weston Ltd.     132,775       9,995,094  
Loblaw Companies Ltd.     314,251       15,567,990  
Metro Inc.     436,293       16,992,139  
              94,685,720  

 

Security   Shares     Value  
                 
Food Products — 0.5%                
Saputo Inc.     418,897   $ 11,658,652  
                 
Gas Utilities — 0.3%                
AltaGas Ltd.     481,175       7,194,236  
                 
Hotels, Restaurants & Leisure — 1.6%                
Restaurant Brands International Inc.     485,813       28,630,883  
Stars Group Inc. (The)(a)     394,997       9,051,371  
              37,682,254  
Insurance — 7.8%                
Fairfax Financial Holdings Ltd.     46,168       19,886,616  
Great-West Lifeco Inc.     479,224       11,270,609  
iA Financial Corp. Inc.     183,891       8,752,409  
Intact Financial Corp.     239,779       25,988,339  
Manulife Financial Corp.     3,351,610       56,328,321  
Power Corp. of Canada     971,482       21,472,694  
Sun Life Financial Inc.     1,011,050       43,677,721  
              187,376,709  
IT Services — 4.7%                
CGI Inc.(a)     412,858       29,006,323  
Shopify Inc., Class A(a)     178,250       82,757,079  
              111,763,402  
Media — 0.9%                
Quebecor Inc., Class B     305,591       7,139,221  
Shaw Communications Inc., Class B, NVS     803,808       13,910,277  
              21,049,498  
Metals & Mining — 7.6%                
Agnico Eagle Mines Ltd.     410,879       19,494,829  
Barrick Gold Corp.     3,057,413       58,308,022  
First Quantum Minerals Ltd.     1,185,741       8,762,656  
Franco-Nevada Corp.     324,314       34,814,800  
Kinross Gold Corp.(a)     2,161,562       10,869,403  
Kirkland Lake Gold Ltd.     467,907       15,089,726  
Lundin Mining Corp.     1,142,339       5,829,346  
Teck Resources Ltd., Class B.     844,513       8,493,258  
Wheaton Precious Metals Corp.     769,079       21,868,921  
              183,530,961  
Multi-Utilities — 1.1%                
Algonquin Power & Utilities Corp.     893,570       13,579,788  
Atco Ltd., Class I, NVS     133,162       4,967,969  
Canadian Utilities Ltd., Class A, NVS.     226,113       6,690,660  
              25,238,417  
Multiline Retail — 1.0%                
Canadian Tire Corp. Ltd., Class A, NVS     100,283       9,860,583  
Dollarama Inc.     514,284       15,117,999  
              24,978,582  
Oil, Gas & Consumable Fuels — 18.3%                
Cameco Corp.     683,198       5,908,987  
Canadian Natural Resources Ltd.     2,034,788       52,372,276  
Cenovus Energy Inc.     1,798,327       13,222,697  
Enbridge Inc.     3,479,280       129,492,926  
Husky Energy Inc.     609,514       2,901,475  
Imperial Oil Ltd.     455,053       9,963,130  
Inter Pipeline Ltd.     710,028       10,504,828  
Keyera Corp.     368,683       8,849,381  
Ovintiv Inc.     446,746       5,161,866  
Parkland Fuel Corp.     254,252       7,993,023  
Pembina Pipeline Corp.     942,792       33,958,352  
PrairieSky Royalty Ltd.     362,918       3,365,984  

 

12 2 0 2 0   i S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI Canada ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
Oil, Gas & Consumable Fuels (continued)                
Suncor Energy Inc.     2,644,158     $ 72,862,818  
TC Energy Corp.     1,605,216       83,659,933  
              440,217,676  
Paper & Forest Products — 0.1%                
West Fraser Timber Co. Ltd.     91,746       3,425,567  
                 
Pharmaceuticals — 1.0%                
Aurora Cannabis Inc.(a)(c)     1,860,502       2,508,667  
Bausch Health Companies Inc.(a)     545,626       12,088,440  
Canopy Growth Corp.(a)(c)     359,039       6,732,232  
Cronos Group Inc.(a)(c)     321,929       1,868,236  
              23,197,575  
Professional Services — 1.1%                
Thomson Reuters Corp.     344,144       25,563,078  
                 
Road & Rail — 6.8%                
Canadian National Railway Co.     1,230,487       104,307,458  
Canadian Pacific Railway Ltd.     236,063       58,502,684  
              162,810,142  
Software — 2.5%                
BlackBerry Ltd.(a)     897,584       4,633,856  
Constellation Software Inc.     34,668       35,315,725  
Open Text Corp.     465,706       19,497,655  
              59,447,236  
Textiles, Apparel & Luxury Goods — 0.4%          
Gildan Activewear Inc.     350,762       8,495,007  
                 
Wireless Telecommunication Services — 1.2%                
Rogers Communications Inc., Class B, NVS     619,894       28,405,170  
                 
Total Common Stocks — 99.7%                
(Cost: $2,812,777,858)           2,393,044,565   

 

Security   Shares     Value  
             
Short-Term Investments                
                 
Money Market Funds — 0.4%                
BlackRock Cash Funds: Institutional, SL Agency Shares, 1.74%(d)(e)(f)     8,156,331     $ 8,162,041  
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52%(d)(e)     1,209,000       1,209,000  
              9,371,041  
Total Short-Term Investments — 0.4%          
(Cost: $9,366,094)             9,371,041  
                 
Total Investments in Securities — 100.1%          
(Cost: $2,822,143,952)             2,402,415,606  
                 
Other Assets, Less Liabilities — (0.1)%             (2,053,274 )
                 
Net Assets — 100.0%           $ 2,400,362,332  

 

(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) All or a portion of this security is on loan.
(d) Affiliate of the Fund.
(e) Annualized 7-day yield as of period-end.
(f) All or a portion of this security was purchased with cash collateral received from loaned securities.

 

Affiliates

 

Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940Act, were as follows:

                                           
Affiliated Issuer   Shares
Held at 08/31/19
    Net Activity     Shares
Held at 02/29/20
    Value at 02/29/20     Income     Net Realized Gain (Loss) (a)   Change in Unrealized Appreciation (Depreciation)  
BlackRock Cash Funds: Institutional, SL Agency Shares     52,307,444       (44,151,113 )     8,156,331     $ 8,162,041     $ 1,181,192 (b)   $ 8,941     $ (6,873 )
BlackRock Cash Funds: Treasury, SL Agency Shares     986,000       223,000       1,209,000       1,209,000       12,619              
                            $ 9,371,041     $ 1,193,811     $ 8,941     $ (6,873 )

 

(a) Includes realized capital gain distributions from an affiliated fund, if any.
(b) Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

 

Futures Contracts

 

Description   Number of Contracts     Expiration
Date
  Notional
Amount
(000)
    Value/
Unrealized Appreciation (Depreciation)
 
Long Contracts                            
S&P/TSX 60 Index     49     03/19/20   $ 7,090     $ (331,363 )

 

S c h e d u l e   o f   I n v e s t m e n t s 13

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI Canada ETF
February 29, 2020  

 

Derivative Financial Instruments Categorized by Risk Exposure

 

As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

    Equity
Contracts
 
Liabilities — Derivative Financial Instruments        
Futures contracts        
Unrealized depreciation on futures contracts(a)   $ 331,363  

 

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

 

For the six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:

       
    Equity
Contracts
 
Net Realized Gain (Loss) from:      
Futures contracts   $ 84,131  
         
Net Change in Unrealized Appreciation (Depreciation) on:        
Futures contracts   $ (400,325 )

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:        
Average notional value of contracts — long   $ 9,624,872  

 

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

 

Fair Value Measurements

 

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

 

The following table summarizes the value of the Fund's investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund's investments into major categories is disclosed in the Schedule of Investments above.

 

    Level 1     Level 2     Level 3     Total  
Investments                        
Assets                        
Common Stocks   $ 2,393,044,565     $     $     $ 2,393,044,565  
Money Market Funds     9,371,041                   9,371,041  
    $ 2,402,415,606     $     $     $ 2,402,415,606  
Derivative financial instruments(a)                                
Liabilities                                
Futures Contracts   $ (331,363 )   $     $     $ (331,363 )

 

(a) Shown at the unrealized appreciation (depreciation) on the contracts.

 

See notes to financial statements.

 

14 2 0 2 0   i S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

Schedule of Investments (unaudited) iShares® MSCI Japan ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
                 
Common Stocks                
                 
Air Freight & Logistics — 0.2%                
SG Holdings Co. Ltd.     455,700     $ 8,990,216  
Yamato Holdings Co. Ltd.     976,900       15,414,488  
              24,404,704  
Airlines — 0.2%                
ANA Holdings Inc.     364,800       9,833,180  
Japan Airlines Co. Ltd.     365,600       9,076,872  
              18,910,052  
Auto Components — 2.2%                
Aisin Seiki Co. Ltd.     519,100       16,843,740  
Bridgestone Corp.     1,820,500       60,860,548  
Denso Corp.     1,381,300       54,040,569  
Koito Manufacturing Co. Ltd.     330,500       13,052,705  
NGK Spark Plug Co. Ltd.     498,400       8,201,548  
Stanley Electric Co. Ltd.     425,500       10,398,350  
Sumitomo Electric Industries Ltd.     2,393,600       28,637,100  
Sumitomo Rubber Industries Ltd.     551,400       5,740,715  
Toyoda Gosei Co. Ltd.     200,300       4,282,128  
Toyota Industries Corp.     464,400       24,583,730  
Yokohama Rubber Co. Ltd. (The)     379,600       6,183,259  
              232,824,392  
Automobiles — 7.6%                
Honda Motor Co. Ltd.     5,195,300       134,837,457  
Isuzu Motors Ltd.     1,745,000       16,436,472  
Mazda Motor Corp.     1,819,100       12,648,449  
Mitsubishi Motors Corp.     2,118,700       7,051,530  
Nissan Motor Co. Ltd.     7,367,500       31,665,258  
Subaru Corp.     1,963,700       47,688,427  
Suzuki Motor Corp.     1,174,700       47,231,946  
Toyota Motor Corp.     7,301,500       482,434,437  
Yamaha Motor Co. Ltd.     889,700       14,253,016  
              794,246,992  
Banks — 5.5%                
Aozora Bank Ltd.     376,900       9,441,281  
Bank of Kyoto Ltd. (The)     177,600       6,050,897  
Chiba Bank Ltd. (The)     1,713,100       8,465,047  
Concordia Financial Group Ltd.     3,322,400       11,458,145  
Fukuoka Financial Group Inc.     555,600       8,468,052  
Japan Post Bank Co. Ltd.     1,273,000       11,376,925  
Mebuki Financial Group Inc.     2,772,780       5,423,970  
Mitsubishi UFJ Financial Group Inc.     39,303,580       193,812,397  
Mizuho Financial Group Inc.     76,736,980       105,005,129  
Resona Holdings Inc.     6,628,400       25,145,703  
Seven Bank Ltd.     1,840,100       4,844,838  
Shinsei Bank Ltd.     616,400       8,211,809  
Shizuoka Bank Ltd. (The)     1,417,500       8,962,453  
Sumitomo Mitsui Financial Group Inc.     4,164,000       134,495,675  
Sumitomo Mitsui Trust Holdings Inc.     1,017,332       34,896,662  
              576,058,983  
Beverages — 1.2%                
Asahi Group Holdings Ltd.     1,152,900       44,356,696  
Coca-Cola Bottlers Japan Holdings Inc.     396,300       9,129,982  
Kirin Holdings Co. Ltd.     2,626,600       50,527,929  
Suntory Beverage & Food Ltd.     454,500       17,317,897  
              121,332,504  
Biotechnology — 0.1%                
PeptiDream Inc.(a)     303,300       12,090,947  

 

Security   Shares     Value  
                 
Building Products — 1.5%                
AGC Inc.     584,800     $ 16,806,935  
Daikin Industries Ltd.     797,200       108,828,350  
LIXIL Group Corp.     847,000       12,720,901  
TOTO Ltd.     455,300       17,285,065  
              155,641,251  
Capital Markets — 1.1%                
Daiwa Securities Group Inc.     4,841,200       20,609,827  
Japan Exchange Group Inc.     1,628,100       27,395,369  
Nomura Holdings Inc.     10,559,100       46,939,123  
SBI Holdings Inc.     753,310       15,189,814  
              110,134,133  
Chemicals — 4.0%                
Air Water Inc.     581,800       7,707,711  
Asahi Kasei Corp.     4,013,700       33,515,409  
Daicel Corp.     778,800       6,721,947  
Hitachi Chemical Co. Ltd.     323,400       13,656,765  
JSR Corp.     609,000       10,727,298  
Kansai Paint Co. Ltd.     574,000       12,542,697  
Kuraray Co. Ltd.     1,002,400       10,445,442  
Mitsubishi Chemical Holdings Corp.     4,067,500       27,388,173  
Mitsubishi Gas Chemical Co. Inc.     521,200       7,905,096  
Mitsui Chemicals Inc.     584,900       12,683,272  
Nippon Paint Holdings Co. Ltd.     454,700       20,761,113  
Nissan Chemical Corp.     401,100       16,975,122  
Nitto Denko Corp.     505,800       25,415,436  
Shin-Etsu Chemical Co. Ltd.     1,128,800       127,096,611  
Showa Denko KK.     437,200       9,452,097  
Sumitomo Chemical Co. Ltd.     4,739,300       17,267,370  
Taiyo Nippon Sanso Corp.     419,600       7,511,682  
Teijin Ltd.     578,800       9,524,591  
Toray Industries Inc.     4,387,900       25,412,517  
Tosoh Corp.     822,900       11,298,520  
              414,008,869  
Commercial Services & Supplies — 1.0%          
Dai Nippon Printing Co. Ltd.     774,500       18,632,805  
Park24 Co. Ltd.     368,700       7,188,394  
Secom Co. Ltd.     673,400       53,533,630  
Sohgo Security Services Co. Ltd.     222,500       10,416,956  
Toppan Printing Co. Ltd.     892,900       15,570,805  
              105,342,590  
Construction & Engineering — 0.8%          
JGC Holdings Corp.     709,200       8,711,723  
Kajima Corp.     1,423,000       15,342,780  
Obayashi Corp.     2,056,600       20,763,338  
Shimizu Corp.     1,869,700       17,021,697  
Taisei Corp.     645,200       22,101,831  
              83,941,369  
Construction Materials — 0.1%                
Taiheiyo Cement Corp.     385,200       9,509,921  
                 
Consumer Finance — 0.2%                
Acom Co. Ltd.     1,227,500       5,052,705  
AEON Financial Service Co. Ltd.     352,770       5,128,108  
Credit Saison Co. Ltd.     496,500       7,217,466  
              17,398,279  
Containers & Packaging — 0.1%                
Toyo Seikan Group Holdings Ltd.     455,200       7,300,756  

 

S c h e d u l e   o f   I n v e s t m e n t s 15

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI Japan ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
                 
Diversified Consumer Services — 0.1%          
Benesse Holdings Inc.     221,600   $  5,715,396  
                 
Diversified Financial Services — 0.8%          
Mitsubishi UFJ Lease & Finance Co. Ltd.     1,261,300       7,214,779  
ORIX Corp.     4,219,100       68,137,692  
Tokyo Century Corp.     137,300       5,702,536  
              81,055,007  
Diversified Telecommunication Services — 0.9%                
Nippon Telegraph & Telephone Corp.     4,095,400       96,039,626  
                 
Electric Utilities — 1.0%                
Chubu Electric Power Co. Inc.     2,057,600       26,849,043  
Chugoku Electric Power Co. Inc. (The)     880,000       11,715,385  
Kansai Electric Power Co. Inc. (The)     2,235,100       24,129,921  
Kyushu Electric Power Co. Inc.     1,209,800       8,770,811  
Tohoku Electric Power Co. Inc.     1,343,800       11,810,341  
Tokyo Electric Power Co. Holdings Inc.(a)     4,819,600       18,319,529  
              101,595,030  
Electrical Equipment — 1.6%                
Fuji Electric Co. Ltd.     407,600       11,196,577  
Mitsubishi Electric Corp.     5,818,000       73,948,714  
Nidec Corp.     718,300       85,105,215  
              170,250,506  
Electronic Equipment, Instruments & Components — 5.8%                
Alps Alpine Co. Ltd.     660,700       10,161,788  
Hamamatsu Photonics KK     455,500       17,672,716  
Hirose Electric Co. Ltd.     102,158       10,853,666  
Hitachi High-Technologies Corp.     212,300       15,686,562  
Hitachi Ltd.     3,089,100       104,158,501  
Keyence Corp.     582,704       185,888,329  
Kyocera Corp.     1,019,300       64,220,672  
Murata Manufacturing Co. Ltd.     1,833,300       97,235,520  
Omron Corp.     605,900       32,804,487  
Shimadzu Corp.     718,300       17,500,509  
TDK Corp.     417,800       40,476,614  
Yokogawa Electric Corp.     721,900       11,625,090  
              608,284,454  
Entertainment — 1.7%                
Konami Holdings Corp.     304,100       10,981,037  
Nexon Co. Ltd.     1,564,700       24,906,966  
Nintendo Co. Ltd.     355,000       119,370,046  
Square Enix Holdings Co. Ltd.     301,700       12,167,014  
Toho Co. Ltd.     357,700       11,026,306  
              178,451,369  
Equity Real Estate Investment Trusts (REITs) — 1.6%                
Daiwa House REIT Investment Corp.     5,845       14,587,438  
Japan Prime Realty Investment Corp.     2,482       10,929,866  
Japan Real Estate Investment Corp.     4,255       29,033,329  
Japan Retail Fund Investment Corp.     8,350       15,877,115  
Nippon Building Fund Inc.     4,346       32,595,504  
Nippon Prologis REIT Inc.     6,323       17,157,948  
Nomura Real Estate Master Fund Inc.     13,114       20,826,294  
Orix JREIT Inc.     8,401       15,966,300  
United Urban Investment Corp.     9,292       14,868,578  
              171,842,372  
Food & Staples Retailing — 1.7%                
Aeon Co. Ltd.     2,085,200       38,943,452  
FamilyMart Co. Ltd.     816,400       18,058,966  
Lawson Inc.     166,200       8,828,870  

 

Security   Shares     Value  
                 
Food & Staples Retailing (continued)                
Seven & i Holdings Co. Ltd.     2,403,980   $ 82,372,503  
Sundrug Co. Ltd.     224,800       7,033,792  
Tsuruha Holdings Inc.     116,100       13,486,608  
Welcia Holdings Co. Ltd.     152,900       9,213,832  
              177,938,023  
Food Products — 1.4%                
Ajinomoto Co. Inc.     1,399,800       23,514,927  
Calbee Inc.     255,300       6,539,599  
Kikkoman Corp.     461,300       21,425,977  
MEIJI Holdings Co. Ltd.     361,356       21,574,492  
NH Foods Ltd.     263,700       9,950,021  
Nisshin Seifun Group Inc.     627,875       10,629,025  
Nissin Foods Holdings Co. Ltd.     201,600       15,886,525  
Toyo Suisan Kaisha Ltd.     287,600       11,398,415  
Yakult Honsha Co. Ltd.     380,400       17,403,921  
Yamazaki Baking Co. Ltd.     388,700       6,612,567  
              144,935,469  
Gas Utilities — 0.5%                
Osaka Gas Co. Ltd.     1,191,600       19,277,263  
Toho Gas Co. Ltd.     235,100       8,031,739  
Tokyo Gas Co. Ltd.     1,204,400       24,374,961  
              51,683,963  
Health Care Equipment & Supplies — 2.8%          
Asahi Intecc Co. Ltd.     618,900       14,837,764  
Hoya Corp.     1,211,500       107,924,753  
Olympus Corp.     3,709,000       67,464,497  
Sysmex Corp.     536,100       34,388,133  
Terumo Corp.     2,052,800       66,190,501  
              290,805,648  
Health Care Providers & Services — 0.3%          
Alfresa Holdings Corp.     592,500       10,414,685  
Medipal Holdings Corp.     582,500       10,649,330  
Suzuken Co. Ltd.     225,740       7,481,764  
              28,545,779  
Health Care Technology — 0.3%                
M3 Inc.     1,402,600       36,227,169  
                 
Hotels, Restaurants & Leisure — 0.8%                
McDonald's Holdings Co. Japan Ltd.     204,400       8,584,175  
Oriental Land Co. Ltd.     634,800       72,181,171  
              80,765,346  
Household Durables — 4.0%                
Casio Computer Co. Ltd.     613,600       10,563,716  
Iida Group Holdings Co. Ltd.     464,280       6,279,929  
Nikon Corp.     1,007,700       10,360,537  
Panasonic Corp.     7,024,015       67,104,691  
Rinnai Corp.     103,200       7,051,258  
Sekisui Chemical Co. Ltd.     1,157,800       17,270,664  
Sekisui House Ltd.     1,985,900       38,976,038  
Sharp Corp.     674,400       7,877,847  
Sony Corp.     4,069,300       249,405,667  
              414,890,347  
Household Products — 0.6%                
Lion Corp.     715,500       11,847,059  
Pigeon Corp.     366,300       12,429,036  
Unicharm Corp.     1,283,200       41,613,439  
              65,889,534  

 

16 2 0 2 0   i S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI Japan ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
Independent Power and Renewable Electricity Producers — 0.1%          
Electric Power Development Co. Ltd.     459,500   $ 9,866,055  
                 
Industrial Conglomerates — 0.4%                
Keihan Holdings Co. Ltd.     315,200       12,799,110  
Toshiba Corp.     1,227,200       33,278,264  
              46,077,374  
Insurance — 3.1%                
Dai-ichi Life Holdings Inc.     3,434,100       47,071,032  
Japan Post Holdings Co. Ltd.     5,005,500       43,653,398  
Japan Post Insurance Co. Ltd.     715,500       10,991,364  
MS&AD Insurance Group Holdings Inc.     1,513,340       48,866,298  
Sompo Holdings Inc.     1,077,350       40,111,599  
Sony Financial Holdings Inc.     482,200       9,647,129  
T&D Holdings Inc.     1,758,800       17,365,429  
Tokio Marine Holdings Inc.     2,039,100       109,663,182  
              327,369,431  
Interactive Media & Services — 0.5%                
Kakaku.com Inc.     444,400       9,517,118  
LINE Corp.(a)(b)     196,400       9,668,419  
Z Holdings Corp.     8,477,000       30,885,468  
              50,071,005  
Internet & Direct Marketing Retail — 0.3%                
Mercari Inc.(a)(b)     236,000       5,345,089  
Rakuten Inc.     2,729,800       22,852,727  
ZOZO Inc.     345,100       4,843,845  
              33,041,661  
IT Services — 1.9%                
Fujitsu Ltd.     626,700       65,130,552  
GMO Payment Gateway Inc.(b)     131,048       8,042,811  
Itochu Techno-Solutions Corp.     316,200       8,776,738  
NEC Corp.     845,000       31,648,820  
Nomura Research Institute Ltd.     1,090,912       23,817,714  
NTT Data Corp.     2,008,700       24,041,457  
Obic Co. Ltd.     202,500       24,949,937  
Otsuka Corp.     323,200       13,828,100  
              200,236,129  
Leisure Products — 1.0%                
Bandai Namco Holdings Inc.     636,698       31,697,662  
Sankyo Co. Ltd.     146,300       4,808,172  
Sega Sammy Holdings Inc.     559,100       7,375,880  
Shimano Inc.     235,200       32,969,211  
Yamaha Corp.     458,900       22,548,278  
              99,399,203  
Machinery — 5.2%                
Amada Holdings Co. Ltd.     1,042,800       9,744,981  
Daifuku Co. Ltd.     328,200       19,534,084  
FANUC Corp.     617,000       102,790,433  
Hino Motors Ltd.     899,800       7,440,983  
Hitachi Construction Machinery Co. Ltd.     336,100       8,297,727  
Hoshizaki Corp.     181,000       15,337,134  
IHI Corp.     461,200       9,701,597  
JTEKT Corp.     643,500       6,281,978  
Kawasaki Heavy Industries Ltd.     455,300       8,273,193  
Komatsu Ltd.     2,933,900       59,363,433  
Kubota Corp.     3,330,300       47,022,175  
Kurita Water Industries Ltd.     322,300       8,351,444  
Makita Corp.     714,500       24,740,718  
MINEBEA MITSUMI Inc.     1,160,600       20,486,556  
MISUMI Group Inc.     905,900       19,123,296  

 

Security   Shares     Value  
                 
Machinery (continued)                
Mitsubishi Heavy Industries Ltd.     1,017,500     $ 32,251,727  
Nabtesco Corp.     355,900       9,608,129  
NGK Insulators Ltd.     832,100       13,091,120  
NSK Ltd.     1,140,300       8,742,670  
SMC Corp.     189,700       75,746,340  
Sumitomo Heavy Industries Ltd.     347,300       7,572,888  
THK Co. Ltd.     385,000       8,826,821  
Yaskawa Electric Corp.     764,300       23,985,125  
              546,314,552  
Marine — 0.1%                
Mitsui OSK Lines Ltd.     364,300       7,568,686  
Nippon Yusen KK.     481,100       6,886,556  
              14,455,242  
Media — 0.4%                
CyberAgent Inc.(b)     328,200       12,459,825  
Dentsu Group Inc.     698,500       18,209,632  
Hakuhodo DY Holdings Inc.     736,700       8,598,761  
              39,268,218  
Metals & Mining — 0.8%                
Hitachi Metals Ltd.     677,800       9,695,874  
JFE Holdings Inc.     1,558,750       14,479,836  
Maruichi Steel Tube Ltd.     189,700       4,607,741  
Mitsubishi Materials Corp.     352,500       8,058,824  
Nippon Steel Corp.     2,570,070       28,973,301  
Sumitomo Metal Mining Co. Ltd.     733,100       18,251,889  
              84,067,465  
Multiline Retail — 0.6%                
Isetan Mitsukoshi Holdings Ltd.     1,063,860       6,973,059  
J Front Retailing Co. Ltd.     727,000       7,730,673  
Marui Group Co. Ltd.     602,100       11,755,645  
Pan Pacific International Holdings Corp.     1,412,600       23,415,647  
Ryohin Keikaku Co. Ltd.     751,400       10,295,918  
              60,170,942  
Oil, Gas & Consumable Fuels — 0.8%                
Idemitsu Kosan Co. Ltd.     623,529       15,364,947  
Inpex Corp.     3,252,800       28,132,732  
JXTG Holdings Inc.     9,771,495       39,316,079  
              82,813,758  
Paper & Forest Products — 0.1%                
Oji Holdings Corp.     2,715,200       12,963,686  
                 
Personal Products — 2.1%                
Kao Corp.     1,538,900       112,252,030  
Kobayashi Pharmaceutical Co. Ltd.(b)     163,000       11,862,513  
Kose Corp.     102,700       12,320,382  
Pola Orbis Holdings Inc.     299,600       5,732,855  
Shiseido Co. Ltd.     1,269,400       75,529,683  
              217,697,463  
Pharmaceuticals — 6.7%                
Astellas Pharma Inc.     6,022,050       94,854,336  
Chugai Pharmaceutical Co. Ltd.     712,700       77,404,909  
Daiichi Sankyo Co. Ltd.     1,805,169       110,286,596  
Eisai Co. Ltd.     810,200       59,947,214  
Hisamitsu Pharmaceutical Co. Inc.     174,800       7,835,331  
Kyowa Kirin Co. Ltd.     774,800       18,460,446  
Nippon Shinyaku Co. Ltd.     149,600       11,081,482  
Ono Pharmaceutical Co. Ltd.     1,221,700       25,030,890  
Otsuka Holdings Co. Ltd.     1,233,100       46,642,080  

 

S c h e d u l e   o f   I n v e s t m e n t s 17

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI Japan ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
                 
Pharmaceuticals (continued)                
Santen Pharmaceutical Co. Ltd.     1,143,800     $ 18,366,121  
Shionogi & Co. Ltd.     856,500       46,412,112  
Sumitomo Dainippon Pharma Co. Ltd.     505,000       7,308,256  
Taisho Pharmaceutical Holdings Co. Ltd.     103,500       6,419,274  
Takeda Pharmaceutical Co. Ltd.     4,787,900       167,031,639  
              697,080,686  
Professional Services — 1.5%                
Persol Holdings Co. Ltd.     574,800       7,614,974  
Recruit Holdings Co. Ltd.     4,331,300       150,901,826  
              158,516,800  
Real Estate Management & Development — 2.6%                
Aeon Mall Co. Ltd.     325,700       4,622,878  
Daito Trust Construction Co. Ltd.     224,000       22,791,452  
Daiwa House Industry Co. Ltd.     1,801,700       49,767,442  
Hulic Co. Ltd.     968,100       10,841,930  
Mitsubishi Estate Co. Ltd.     3,776,600       64,562,652  
Mitsui Fudosan Co. Ltd.     2,850,700       65,476,376  
Nomura Real Estate Holdings Inc.     401,500       8,665,387  
Sumitomo Realty & Development Co. Ltd.     1,069,600       33,437,085  
Tokyu Fudosan Holdings Corp.     1,952,900       12,329,531  
              272,494,733  
Road & Rail — 3.7%                
Central Japan Railway Co.     459,700       75,774,959  
East Japan Railway Co.     973,300       75,064,967  
Hankyu Hanshin Holdings Inc.     718,400       23,643,629  
Keikyu Corp.     701,500       10,652,733  
Keio Corp.     328,200       15,791,573  
Keisei Electric Railway Co. Ltd.     416,400       13,337,616  
Kintetsu Group Holdings Co. Ltd.     552,700       23,903,449  
Kyushu Railway Co.     508,700       15,303,681  
Nagoya Railroad Co. Ltd.     587,900       15,364,484  
Nippon Express Co. Ltd.     247,900       11,881,917  
Odakyu Electric Railway Co. Ltd.     944,100       18,240,434  
Seibu Holdings Inc.     633,700       8,965,153  
Tobu Railway Co. Ltd.     604,200       18,036,657  
Tokyu Corp.     1,592,000       24,441,218  
West Japan Railway Co.     519,100       36,661,603  
              387,064,073  
Semiconductors & Semiconductor Equipment — 1.9%                
Advantest Corp.     633,900       28,884,425  
Disco Corp.     82,500       16,734,807  
Renesas Electronics Corp.(a)     2,450,800       14,791,367  
Rohm Co. Ltd.     306,300       20,161,591  
SUMCO Corp.     791,200       12,036,891  
Tokyo Electron Ltd.     500,052       103,496,601  
              196,105,682  
Software — 0.3%                
Oracle Corp. Japan     120,900       9,459,936  
Trend Micro Inc.     405,800       20,202,531  
              29,662,467  
Specialty Retail — 1.7%                
ABC-Mart Inc.     101,100       5,773,661  
Fast Retailing Co. Ltd.     190,600       94,429,741  
Hikari Tsushin Inc.     65,400       12,423,363  
Nitori Holdings Co. Ltd.     254,300       35,281,134  
Shimamura Co. Ltd.     67,300       4,498,521  
USS Co. Ltd.     698,000       11,039,614  

 

Security   Shares     Value  
                 
Specialty Retail (continued)                
Yamada Denki Co. Ltd.     1,966,600     $ 9,462,434  
              172,908,468  
Technology Hardware, Storage & Peripherals — 1.8%                
Brother Industries Ltd.     712,100       12,695,205  
Canon Inc.     3,190,350       80,849,411  
FUJIFILM Holdings Corp.     1,143,400       55,937,717  
Konica Minolta Inc.     1,411,400       7,667,737  
Ricoh Co. Ltd.     2,128,600       19,832,596  
Seiko Epson Corp.     889,000       12,593,445  
              189,576,111  
Tobacco — 0.7%                
Japan Tobacco Inc.     3,827,200       76,072,098  
                 
Trading Companies & Distributors — 3.9%          
ITOCHU Corp.     4,323,500       98,663,100  
Marubeni Corp.     4,968,600       33,018,055  
Mitsubishi Corp.     4,311,700       107,527,678  
Mitsui & Co. Ltd.     5,266,200       87,074,284  
MonotaRO Co. Ltd.     402,400       8,953,414  
Sumitomo Corp.     3,787,400       54,231,116  
Toyota Tsusho Corp.     685,300       20,743,564  
              410,211,211  
Transportation Infrastructure — 0.1%          
Japan Airport Terminal Co. Ltd.     166,100       6,498,326  
Kamigumi Co. Ltd.     336,800       6,472,780  
              12,971,106  
Wireless Telecommunication Services — 5.5%                
KDDI Corp.     5,639,200       159,872,745  
NTT DOCOMO Inc.     4,243,900       115,181,173  
Softbank Corp.     5,333,100       69,837,331  
SoftBank Group Corp.     5,009,100       232,796,721  
              577,687,970  
Total Common Stocks — 99.5%                
(Cost: $12,299,123,592)             10,392,224,369  
                 
Short-Term Investments                
                 
Money Market Funds — 0.2%                
BlackRock Cash Funds: Institutional, SL Agency Shares, 1.74%(c)(d)(e)     16,347,768       16,359,212  
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52%(c)(d)     5,531,000       5,531,000  
              21,890,212  
Total Short-Term Investments — 0.2%          
(Cost: $21,881,280)             21,890,212  
                 
Total Investments in Securities — 99.7%          
(Cost: $12,321,004,872)             10,414,114,581  
                 
Other Assets, Less Liabilities — 0.3%             28,417,032  
                 
Net Assets — 100.0%           $ 10,442,531,613  

 

(a) Non-income producing security.
(b) All or a portion of this security is on loan.
(c) Affiliate of the Fund.
(d) Annualized 7-day yield as of period-end.
(e) All or a portion of this security was purchased with cash collateral received from loaned securities.

 

18 2 0 2 0   i S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI Japan ETF
February 29, 2020  

 

Affiliates

 

Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940Act, were as follows:

 

Affiliated Issuer   Shares Held at 08/31/19     Net Activity     Shares Held at 02/29/20     Value at 02/29/20     Income     Net Realized Gain (Loss) (a)   Change in Unrealized Appreciation (Depreciation)  
BlackRock Cash Funds: Institutional, SL Agency Shares     53,752,562       (37,404,794 )     16,347,768     $ 16,359,212     $ 139,183 (b)   $ 9,806     $ (3,311 )
BlackRock Cash Funds: Treasury, SL Agency Shares     5,212,000       319,000       5,531,000       5,531,000       56,897              
                            $ 21,890,212     $ 196,080     $ 9,806     $ (3,311 )

 

(a) Includes realized capital gain distributions from an affiliated fund, if any.
(b) Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

 

Futures Contracts

 

Description   Number of
Contracts
    Expiration
Date
 

Notional

Amount
(000)

    Value/
Unrealized
Appreciation
(Depreciation)
 
Long Contracts                            
TOPIX Index     363     03/12/20   $ 50,463     $ (7,036,533 )

 

Derivative Financial Instruments Categorized by Risk Exposure

 

As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

    Equity Contracts  
Liabilities — Derivative Financial Instruments      
Futures contracts      
Unrealized depreciation on futures contracts(a)   $ 7,036,533  

 

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

 

For the six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

    Equity Contracts  
Net Realized Gain (Loss) from:      
Futures contracts   $ 10,651,726  
         
Net Change in Unrealized Appreciation (Depreciation) on:        
Futures contracts   $ (6,262,319 )

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:      
Average notional value of contracts — long   $ 64,186,103  

 

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

 

Fair Value Measurements

 

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

 

S c h e d u l e   o f   I n v e s t m e n t s 19

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI Japan ETF
February 29, 2020  

 

Fair Value Measurements (continued)

 

The following table summarizes the value of the Fund's investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund's investments into major categories is disclosed in the Schedule of Investments above.

 

    Level 1     Level 2     Level 3     Total  
Investments                        
Assets                        
Common Stocks   $ 10,392,224,369     $     $     $ 10,392,224,369  
Money Market Funds     21,890,212                   21,890,212  
    $ 10,414,114,581     $     $     $ 10,414,114,581  
Derivative financial instruments(a)                                
Liabilities                                
Futures Contracts   $ (7,036,533 )   $     $     $ (7,036,533 )

 

(a) Shown at the unrealized appreciation (depreciation) on the contracts.

 

See notes to financial statements.

 

20 2 0 2 0   i S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

Schedule of Investments (unaudited) iShares® MSCI Mexico ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
Common Stocks                
                 
Airlines — 0.7%                
Controladora Vuela Cia. de Aviacion SAB de CV, Class A(a)     3,798,500     $ 3,849,060  
Grupo Aeromexico SAB de CV(a)     2,559,868       1,533,606  
              5,382,666  
Auto Components — 0.3%                
Nemak SAB de CV(b)     5,415,000       1,821,731  
                 
Banks — 12.2%                
Banco del Bajio SA(b)     3,994,530       6,194,634  
Grupo Financiero Banorte SAB de CV, Class O     11,371,861       61,258,064  
Grupo Financiero Inbursa SAB de CV, Class O     11,950,392       12,749,338  
Regional SAB de CV     1,281,600       7,084,358  
              87,286,394  
Beverages — 12.5%                
Arca Continental SAB de CV     2,287,729       12,479,572  
Coca-Cola Femsa SAB de CV     1,380,843       7,601,559  
Fomento Economico Mexicano SAB de CV     8,635,610       69,450,432  
              89,531,563  
Building Products — 0.2%                
Grupo Rotoplas SAB de CV(c)     1,809,670       1,356,578  
                 
Capital Markets — 0.7%                
Bolsa Mexicana de Valores SAB de CV     2,534,187       5,322,734  
                 
Chemicals — 1.5%                
Orbia Advance Corp. SAB de CV     5,457,242       10,610,423  
                 
Construction Materials — 4.1%                
Cemex SAB de CV, CPO, NVS     75,817,629       24,281,250  
Grupo Cementos de Chihuahua SAB de CV     983,600       4,868,190  
              29,149,440  
Consumer Finance — 1.3%                
Credito Real SAB de CV SOFOM ER     1,961,274       2,079,516  
Gentera SAB de CV     5,912,706       5,641,958  
Unifin Financiera SAB de CV     1,121,548       1,770,999  
              9,492,473  
Diversified Telecommunication Services — 1.0%          
Axtel SAB de CV, CPO(a)     8,132,000       1,758,137  
Telesites SAB de CV(a)     7,650,646       5,731,270  
              7,489,407  
Equity Real Estate Investment Trusts (REITs) — 6.1%    
Concentradora Fibra Danhos SA de CV     1,961,400       2,727,620  
Fibra Uno Administracion SA de CV     15,766,100       23,565,726  
Macquarie Mexico Real Estate Management SA de CV(b)     4,577,000       6,039,009  
PLA Administradora Industrial S. de RL de CV     4,472,100       6,695,782  
Prologis Property Mexico SA de CV     2,108,700       4,429,053  
              43,457,190  
Food & Staples Retailing — 9.9%                
Grupo Comercial Chedraui SA de CV(c)     2,279,700       2,916,920  
La Comer SAB de CV(a)(c)     3,075,855       3,626,422  
Wal-Mart de Mexico SAB de CV     22,993,533       64,114,516  
              70,657,858  
Food Products — 3.6%                
Gruma SAB de CV, Series B     1,101,520       10,519,707  
Grupo Bimbo SAB de CV, Series A     8,340,104       12,508,155  
Grupo Herdez SAB de CV     1,485,444       2,660,765  
              25,688,627  

 

Security   Shares     Value  
             
Gas Utilities — 1.7%                
Infraestructura Energetica Nova SAB de CV     2,786,200     $ 12,050,334  
                 
Hotels, Restaurants & Leisure — 1.1%                
Alsea SAB de CV(a)     3,039,566       6,129,340  
Hoteles City Express SAB de CV(a)     3,005,500       1,844,610  
              7,973,950  
Household Durables — 0.2%                
Consorcio ARA SAB de CV     7,610,219       1,372,388  
                 
Household Products — 2.1%                
Kimberly-Clark de Mexico SAB de CV, Class A.     7,886,954       14,848,421  
                 
Industrial Conglomerates — 2.3%                
Alfa SAB de CV, Class A     15,907,951       10,100,924  
Grupo Carso SAB de CV, Series A1     2,461,633       6,718,462  
              16,819,386  
Insurance — 0.7%                
Qualitas Controladora SAB de CV     1,221,300       5,198,846  
                 
Media — 3.9%                
Grupo Televisa SAB, CPO     12,045,947       22,410,640  
Megacable Holdings SAB de CV, CPO     1,678,900       5,588,842  
              27,999,482  
Metals & Mining — 5.3%                
Grupo Mexico SAB de CV, Series B     13,185,586       30,918,339  
Industrias Penoles SAB de CV     760,498       6,816,496  
              37,734,835  
Mortgage Real Estate Investment — 0.4%          
Concentradora Hipotecaria SAPI de CV(c)     2,773,200       2,576,170  
                 
Multiline Retail — 0.7%                
El Puerto de Liverpool SAB de CV, Series C1, NVS(c)     1,085,865       5,035,904  
                 
Pharmaceuticals — 0.7%                
Genomma Lab Internacional SAB de CV, Class B(a)     4,977,593       5,008,646  
                 
Real Estate Management & Development — 1.0%          
Corp Inmobiliaria Vesta SAB de CV     3,393,649       5,353,656  
Grupo GICSA SAB de CV(a)     5,481,766       1,791,581  
              7,145,237  
Road & Rail — 0.2%                
Grupo Traxion SAB de CV(a)(b)     2,238,500       1,723,271  
                 
Transportation Infrastructure — 8.3%                
Grupo Aeroportuario del Centro Norte SAB de CV     1,691,492       11,045,345  
Grupo Aeroportuario del Pacifico SAB de CV, Series B     1,819,149       19,633,742  
Grupo Aeroportuario del Sureste SAB de CV, Class B     1,052,145       17,267,264  
Promotora y Operadora de Infraestructura SAB de CV     1,192,825       11,576,666  
              59,523,017  
Wireless Telecommunication Services — 16.9%                
America Movil SAB de CV, Series L, NVS.     154,640,718       121,234,762  
                 
Total Common Stocks — 99.6%                
(Cost: $1,095,809,679)             713,491,733  
                 
Short-Term Investments                
                 
Money Market Funds — 0.2%                
BlackRock Cash Funds: Institutional, SL Agency Shares, 1.74%(d)(e)(f)     1,584,544       1,585,653  

 

S c h e d u l e   o f   I n v e s t m e n t s 21

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI Mexico ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Money Market Funds (continued)                
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52%(d)(e)     194,000     $ 194,000  
              1,779,653  
Total Short-Term Investments — 0.2%                
(Cost: $1,779,324)             1,779,653  
                 
Total Investments in Securities — 99.8%                
(Cost: $1,097,589,003)             715,271,386  
                 
Other Assets, Less Liabilities — 0.2%             1,383,888  
                 
Net Assets — 100.0%           $ 716,655,274  

 

(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) All or a portion of this security is on loan.
(d) Affiliate of the Fund.
(e) Annualized 7-day yield as of period-end.
(f) All or a portion of this security was purchased with cash collateral received from loaned securities.

 

Affiliates

 

Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

 

Affiliated Issuer   Shares
Held at
08/31/19
    Net Activity     Shares
Held at 02/29/20
    Value at
02/29/20
    Income     Net Realized
Gain (Loss)
(a)   Change in
Unrealized
Appreciation (Depreciation)
 
BlackRock Cash Funds: Institutional, SL Agency Shares     3,758,756       (2,174,212 )     1,584,544     $ 1,585,653     $ 6,259 (b)   $ (35 )   $ 343  
BlackRock Cash Funds: Treasury, SL Agency Shares     371,000       (177,000 )     194,000       194,000       6,752              
                            $ 1,779,653     $ 13,011     $ (35 )   $ 343  

 

(a) Includes realized capital gain distributions from an affiliated fund, if any.
(b) Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

 

Futures Contracts

                       
Description   Number of
Contracts
    Expiration
Date
  Notional
Amount
(000)
    Value/
Unrealized
Appreciation
(Depreciation)
 
Long Contracts                            
MEX BOLSA Index     45     03/20/20   $ 946     $ (29,659 )

 

Derivative Financial Instruments Categorized by Risk Exposure

 

As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

  Equity Contracts
Liabilities — Derivative Financial Instruments    
Futures contracts    
Unrealized depreciation on futures contracts(a) $ 29,659

 

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

 

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Schedule of Investments (unaudited) (continued) iShares® MSCI Mexico ETF
February 29, 2020  

 

For the six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:

       
    Equity Contracts  
Net Realized Gain (Loss) from:      
Futures contracts   $ 13,079  
         
Net Change in Unrealized Appreciation (Depreciation) on:        
Futures contracts   $ (113,315 )

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:      
Average notional value of contracts — long   $ 2,020,133  

 

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

 

Fair Value Measurements

 

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

 

The following table summarizes the value of the Fund's investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund's investments into major categories is disclosed in the Schedule of Investments above.

 

    Level 1     Level 2     Level 3     Total  
Investments                        
Assets                        
Common Stocks   $ 713,491,733     $     $     $ 713,491,733  
Money Market Funds     1,779,653                   1,779,653  
    $ 715,271,386     $     $     $ 715,271,386  
Derivative financial instruments(a)                                
Liabilities                                
Futures Contracts   $ (29,659 )   $     $     $ (29,659 )

 

(a) Shown at the unrealized appreciation (depreciation) on the contracts.

 

See notes to financial statements.

 

S c h e d u l e   o f   I n v e s t m e n t s 23

 

 

 

Schedule of Investments (unaudited) iShares®  MSCI South Korea ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
Common Stocks                
                 
Aerospace & Defense — 0.4%                
Korea Aerospace Industries Ltd.(a)     688,674     $ 14,544,659  
                 
Air Freight & Logistics — 0.4%                
Hyundai Glovis Co. Ltd.     167,429       16,956,580  
                 
Airlines — 0.3%                
Korean Air Lines Co. Ltd.(a)     581,464       10,676,531  
                 
Auto Components — 2.7%                
Hankook Tire & Technology Co. Ltd.     713,265       14,975,922  
Hanon Systems     1,803,397       15,665,573  
Hyundai Mobis Co. Ltd.     471,390       81,508,357  
              112,149,852  
Automobiles — 3.8%                
Hyundai Motor Co.     1,054,170       99,818,485  
Kia Motors Corp.     1,880,754       56,136,132  
              155,954,617  
Banks — 7.1%                
BNK Financial Group Inc.     2,776,571       14,105,758  
Hana Financial Group Inc.     2,101,957       54,344,545  
Industrial Bank of Korea(a)     2,325,489       18,209,469  
KB Financial Group Inc.     2,715,232       86,967,909  
Shinhan Financial Group Co. Ltd.     3,215,867       85,526,969  
Woori Financial Group Inc.     4,101,450       32,453,631  
              291,608,281  
Biotechnology — 2.8%                
Celltrion Inc.(a)(b)     642,079       89,875,200  
Helixmith Co. Ltd.(a)(b)     225,540       11,532,346  
Medy-Tox Inc.     48,550       11,732,750  
              113,140,296  
Capital Markets — 1.9%                
Korea Investment Holdings Co. Ltd.(a)     363,304       18,785,913  
Meritz Securities Co. Ltd.     3,872,441       11,080,060  
Mirae Asset Daewoo Co. Ltd.(a)     3,486,749       18,201,720  
NH Investment & Securities Co. Ltd.(a)     1,512,334       12,427,413  
Samsung Securities Co. Ltd.     588,826       16,047,872  
              76,542,978  
Chemicals — 3.9%                
Hanwha Solutions Corp.     1,032,318       15,172,397  
KCC Corp.     63,700       8,732,853  
Kumho Petrochemical Co. Ltd.     218,498       10,668,532  
LG Chem Ltd.     316,659       95,949,372  
Lotte Chemical Corp.     141,317       21,817,157  
OCI Co. Ltd.(a)     232,595       9,432,115  
              161,772,426  
Commercial Services & Supplies — 0.3%                
S-1 Corp.     186,943       12,652,709  
                 
Communications Equipment — 0.3%                
KMW Co. Ltd.(a)(b)     283,222       11,345,204  
                 
Construction & Engineering — 1.9%                
Daelim Industrial Co. Ltd.(a)     261,608       15,616,780  
Daewoo Engineering & Construction Co. Ltd.(a)     2,730,821       9,106,484  
GS Engineering & Construction Corp.     617,433       13,345,094  
HDC Hyundai Development Co-Engineering & Construction, Class E(b)     397,191       5,903,086  
Hyundai Engineering & Construction Co. Ltd.     670,408       19,154,514  

 

Security   Shares     Value  
             
Construction & Engineering (continued)                
Samsung Engineering Co. Ltd.(a)     1,423,422     $ 16,525,525  
              79,651,483  
Construction Materials — 0.3%                
POSCO Chemical Co. Ltd.(b)     281,970       12,746,112  
                 
Consumer Finance — 0.3%                
Samsung Card Co. Ltd.     373,917       10,375,466  
                 
Diversified Telecommunication Services — 0.5%                
LG Uplus Corp.     1,825,887       19,844,964  
                 
Electric Utilities — 0.8%                
Korea Electric Power Corp.(a)     1,886,283       33,081,785  
                 
Electronic Equipment, Instruments & Components — 4.2%                
LG Display Co. Ltd.(a)(b)     1,901,004       21,287,488  
LG Innotek Co. Ltd.     139,349       14,915,908  
Samsung Electro-Mechanics Co. Ltd.     413,622       42,911,792  
Samsung SDI Co. Ltd.     383,381       93,122,598  
              172,237,786  
Entertainment — 2.3%                
NCSoft Corp.     125,581       67,107,508  
Netmarble Corp.(a)(b)(c)     235,337       17,168,265  
Pearl Abyss Corp.(a)(b)     79,112       11,542,731  
              95,818,504  
Food & Staples Retailing — 0.9%                
BGF retail Co. Ltd.     90,152       11,245,803  
E-MART Inc.     194,943       16,853,862  
GS Retail Co. Ltd.     348,362       10,139,643  
              38,239,308  
Food Products — 1.0%                
CJ CheilJedang Corp.     77,947       15,659,998  
Orion Corp.     213,878       16,606,583  
Ottogi Corp.     21,056       8,616,577  
              40,883,158  
Gas Utilities — 0.2%                
Korea Gas Corp.     383,221       8,866,620  
                 
Health Care Providers & Services — 0.6%          
Celltrion Healthcare Co. Ltd.(a)     456,048       24,332,573  
                 
Hotels, Restaurants & Leisure — 0.5%                
Kangwon Land Inc.(a)     1,005,876       18,883,469  
                 
Household Durables — 1.5%                
Coway Co. Ltd.     417,744       23,699,104  
LG Electronics Inc.     770,497       38,318,665  
              62,017,769  
Industrial Conglomerates — 3.9%                
CJ Corp.     165,230       10,951,844  
Hanwha Corp.     565,475       9,335,343  
LG Corp.     692,733       38,501,011  
Lotte Corp.     372,022       8,898,509  
Samsung C&T Corp.     607,616       52,781,793  
SK Holdings Co. Ltd.     252,869       39,975,997  
              160,444,497  
Insurance — 2.4%                
DB Insurance Co. Ltd.     473,580       16,884,326  
Hanwha Life Insurance Co. Ltd.     5,243,638       7,123,922  
Hyundai Marine & Fire Insurance Co. Ltd.     706,418       13,145,366  
Samsung Fire & Marine Insurance Co. Ltd.     227,811       37,140,039  

 

24 2 0 2 0   i S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI South Korea ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
Insurance (continued)                
Samsung Life Insurance Co. Ltd.     544,246     $ 26,215,225  
              100,508,878  
Interactive Media & Services — 4.6%                
Kakao Corp.     371,528       52,616,563  
NAVER Corp.     958,650       137,344,669  
              189,961,232  
Internet & Direct Marketing Retail — 0.3%                
CJ ENM Co. Ltd.     113,624       11,769,369  
                 
IT Services — 0.8%                
Samsung SDS Co. Ltd.     254,402       34,876,849  
                 
Leisure Products — 0.7%                
HLB Inc.(a)(b)     355,011       28,207,955  
                 
Life Sciences Tools & Services — 1.1%                
Samsung Biologics Co. Ltd.(a)(c)     121,377       46,322,140  
                 
Machinery — 2.1%                
Daewoo Shipbuilding & Marine Engineering Co. Ltd.(a)     511,683       9,332,053  
Doosan Bobcat Inc.     545,542       12,757,013  
Hyundai Heavy Industries Holdings Co. Ltd.     85,094       18,952,595  
Korea Shipbuilding & Offshore Engineering Co. Ltd.(a)     305,370       26,149,428  
Samsung Heavy Industries Co. Ltd.(a)     3,818,885       18,331,906  
              85,522,995  
Marine — 0.3%                
Pan Ocean Co. Ltd.(a)     3,429,114       10,545,690  
                 
Media — 0.3%                
Cheil Worldwide Inc.     751,363       11,971,078  
                 
Metals & Mining — 3.0%                
Hyundai Steel Co.     744,836       14,626,874  
Korea Zinc Co. Ltd.(a)     69,373       23,676,499  
POSCO     533,344       85,853,234  
              124,156,607  
Multiline Retail — 0.8%                
Hyundai Department Store Co. Ltd.     175,838       10,265,059  
Lotte Shopping Co. Ltd.     132,199       10,362,573  
Shinsegae Inc.     70,470       13,693,635  
              34,321,267  
Oil, Gas & Consumable Fuels — 1.8%                
GS Holdings Corp.     472,969       16,064,200  
SK Innovation Co. Ltd.     416,714       38,772,073  
S-Oil Corp.     372,748       20,440,524  
              75,276,797  
Personal Products — 2.7%                
Amorepacific Corp.(a)     240,280       31,852,680  
AMOREPACIFIC Group(a)     278,893       14,237,436  
LG Household & Health Care Ltd.     65,221       65,570,063  
              111,660,179  
Pharmaceuticals — 0.7%                
Hanmi Pharm Co. Ltd.(a)     65,277       14,028,240  
Yuhan Corp.     90,625       15,968,505  
              29,996,745  
Road & Rail — 0.3%                
CJ Logistics Corp.(a)     106,868       11,747,121  
                 
Semiconductors & Semiconductor Equipment — 6.6%                
SK Hynix Inc.     3,723,342       269,478,602  

 

Security   Shares     Value  
             
Specialty Retail — 0.4%                
Hotel Shilla Co. Ltd.     273,638     $ 18,092,327  
                 
Technology Hardware, Storage & Peripherals — 22.3%                
Samsung Electronics Co. Ltd.     20,494,574       914,619,935  
                 
Textiles, Apparel & Luxury Goods — 0.4%          
Fila Holdings Corp.(b)     469,553       14,846,303  
                 
Tobacco — 1.4%                
KT&G Corp.     814,390       56,796,075  
                 
Trading Companies & Distributors — 0.2%                
Posco International Corp.     697,979       8,591,837  
                 
Wireless Telecommunication Services — 0.7%                
SK Telecom Co. Ltd.     157,913       27,629,899  
                 
Total Common Stocks — 96.7%                
(Cost: $2,676,380,428)             3,971,667,507  
                 
Preferred Stocks                
                 
Automobiles — 0.8%                
Hyundai Motor Co.                
Preference Shares, NVS     238,015       12,993,326  
Series 2, Preference Shares, NVS     312,378       19,264,810  
              32,258,136  
Chemicals — 0.3%                
LG Chem Ltd., Preference Shares, NVS     82,300       12,671,964  
                 
Personal Products — 0.5%                
Amorepacific Corp., Preference Shares, NVS     134,160       8,108,147  
LG Household & Health Care Ltd., Preference Shares, NVS     21,149       12,764,279  
              20,872,426  
Technology Hardware, Storage & Peripherals — 0.1%                
Samsung Electronics Co. Ltd., Preference Shares, NVS     78,045       2,927,089  
                 
Total Preferred Stocks — 1.7%                
(Cost: $61,031,806)             68,729,615  
                 
Rights                
                 
Construction & Engineering — 0.0%                
HDC Hyundai Development Co., (Expires 06/03/20)(a)     184,104       0 (d)
                 
Total Rights — 0.0%                
(Cost: $0)             0 (d)
                 
Short-Term Investments                
                 
Money Market Funds — 2.7%                
BlackRock Cash Funds: Institutional, SL Agency Shares, 1.74%(e)(f)(g)     102,750,921       102,822,847  

 

S c h e d u l e   o f   I n v e s t m e n t s 25

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI South Korea ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
Money Market Funds (continued)          
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52%(e)(f)     7,795,000     $ 7,795,000  
              110,617,847  
Total Short-Term Investments — 2.7%                
(Cost: $110,545,921)             110,617,847  
                 
Total Investments in Securities — 101.1%          
(Cost: $2,847,958,155)             4,151,014,969  
                 
Other Assets, Less Liabilities — (1.1)%       (44,012,217 )
                 
Net Assets — 100.0%           $ 4,107,002,752  

 

(a) Non-income producing security.
(b) All or a portion of this 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) Rounds to less than $1.
(e) Affiliate of the Fund.
(f) Annualized 7-day yield as of period-end.
(g) All or a portion of this security was purchased with cash collateral received from loaned securities.

 

Affiliates

 

Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

 

Affiliated Issuer   Shares
Held at 08/31/19
    Net Activity     Shares
Held at 02/29/20
    Value at 02/29/20     Income     Net Realized Gain (Loss)(a)     Change in Unrealized Appreciation (Depreciation)  
BlackRock Cash Funds: Institutional, SL Agency Shares     202,603,206       (99,852,285 )     102,750,921     $ 102,822,847     $ 5,809,056 (b)   $ (3,648 )   $ 20,079  
BlackRock Cash Funds: Treasury, SL Agency Shares     6,894,000       901,000       7,795,000       7,795,000       68,525              
                            $ 110,617,847     $ 5,877,581     $ (3,648 )   $ 20,079  

 

(a) Includes realized capital gain distributions from an affiliated fund, if any.
(b) Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

 

Futures Contracts

 

Description   Number of
Contracts
    Expiration Date   Notional
Amount
(000)
    Value/
Unrealized
Appreciation
(Depreciation)
 
Long Contracts                            
KOSPI 200 Index     1,122     03/12/20   $ 61,862     $ (5,966,209 )

 

Derivative Financial Instruments Categorized by Risk Exposure

 

As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

       
    Equity
Contracts
 
Liabilities — Derivative Financial Instruments      
Futures contracts        
Unrealized depreciation on futures contracts(a)   $ 5,966,209  

 

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

 

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Schedule of Investments (unaudited) (continued) iShares® MSCI South Korea ETF
February 29, 2020  

 

For the six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:

       
    Equity
Contracts
 
Net Realized Gain (Loss) from:      
Futures contracts   $ 927,042  
         
Net Change in Unrealized Appreciation (Depreciation) on:        
Futures contracts   $ (5,178,007 )

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:      
Average notional value of contracts — long   $ 29,137,707  

 

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

 

Fair Value Measurements

 

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

 

The following table summarizes the value of the Fund's investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund's investments into major categories is disclosed in the Schedule of Investments above.

 

    Level 1     Level 2     Level 3     Total  
Investments                        
Assets                        
Common Stocks   $ 3,971,667,507     $     $     $ 3,971,667,507  
Preferred Stocks     68,729,615                   68,729,615  
Rights           0 (a)           0 (a)
Money Market Funds     110,617,847                   110,617,847  
    $ 4,151,014,969     $ 0 (a)   $     $ 4,151,014,969  
Derivative financial instruments(b)                                
Liabilities                                
Futures Contracts   $ (5,966,209 )   $     $     $ (5,966,209 )

 

(a) Rounds to less than $1.
(b) Shown at the unrealized appreciation (depreciation) on the contracts.

 

See notes to financial statements.

 

S c h e d u l e   o f   I n v e s t m e n t s 27

 

 

 

Statements of Assets and Liabilities (unaudited)

February 29, 2020

 

    iShares
MSCI Australia ETF
    iShares
MSCI Canada ETF
    iShares
MSCI Japan ETF
    iShares
MSCI Mexico ETF
 
                         
ASSETS                        
Investments in securities, at value (including securities on loan)(a)                                
Unaffiliated(b)   $ 1,287,888,085     $ 2,393,044,565     $ 10,392,224,369     $ 713,491,733  
Affiliated(c)     581,114       9,371,041       21,890,212       1,779,653  
Cash     448       614       933       452  
Foreign currency, at value(d)     4,970,502       9,334,284       28,505,916       2,153,411  
Foreign currency collateral pledged:                                
Futures contracts(e)     644,750       496,145       1,380,244       46,473  
Receivables:                                
Investments sold     2,412,846       75,551,359       22,086,416       8,682,368  
Securities lending income — Affiliated     493       218,048       16,427       486  
Capital shares sold                       981,930  
Dividends     8,302,433       4,374,709       25,324,318       6,465  
Total assets     1,304,800,671       2,492,390,765       10,491,428,835       727,142,971  
                                 
LIABILITIES                                
Collateral on securities loaned, at value     8,780       8,154,067       16,305,696       1,585,416  
Payables:                                
Investments purchased     4,565,818       82,122,742       23,165,722       8,240,397  
Variation margin on futures contracts     566,584       352,587       3,252,498       1,624  
Capital shares redeemed           309,921       1,125,336       349,415  
Investment advisory fees     605,592       1,089,116       5,047,970       310,845  
Total liabilities     5,746,774       92,028,433       48,897,222       10,487,697  
                                 
NET ASSETS   $ 1,299,053,897     $ 2,400,362,332     $ 10,442,531,613     $ 716,655,274  
                                 
NET ASSETS CONSIST OF:                                
Paid-in capital   $ 1,850,579,226     $ 3,438,354,140     $ 13,229,578,735     $ 1,393,267,260  
Accumulated loss     (551,525,329 )     (1,037,991,808 )     (2,787,047,122 )     (676,611,986 )
NET ASSETS   $ 1,299,053,897     $ 2,400,362,332     $ 10,442,531,613     $ 716,655,274  
                                 
Shares outstanding     64,400,000       87,100,000       195,150,000       17,400,000  
Net asset value   $ 20.17     $ 27.56     $ 53.51     $ 41.19  
Shares authorized     627.8 million       340.2 million       2.5246 billion       255 million  
Par value   $ 0.001     $ 0.001     $ 0.001     $ 0.001  
                                 
(a)  Securities loaned, at value   $ 8,275     $ 7,519,650     $ 15,634,742     $ 1,379,864  
(b)  Investments, at cost — Unaffiliated   $ 1,633,601,912     $ 2,812,777,858     $ 12,299,123,592     $ 1,095,809,679  
(c)  Investments, at cost — Affiliated   $ 581,112     $ 9,366,094     $ 21,881,280     $ 1,779,324  
(d)  Foreign currency, at cost   $ 5,110,843     $ 9,436,576     $ 27,853,919     $ 2,238,790  
(e)  Foreign currency collateral pledged, at cost   $ 675,785     $ 507,039     $ 1,362,083     $ 48,132  

 

See notes to financial statements.

 

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Statements of Assets and Liabilities (unaudited) (continued)

February 29, 2020

    iShares  
    MSCI South Korea  
    ETF  
         
ASSETS        
Investments in securities, at value (including securities on loan)(a)        
Unaffiliated(b)   $ 4,040,397,122  
Affiliated(c)     110,617,847  
Cash     700  
Foreign currency, at value(d)     1,576  
Foreign currency collateral pledged:        
Futures contracts(e)     9,266,771  
Receivables:        
Investments sold     82,680,949  
Securities lending income — Affiliated     878,375  
Dividends     56,324,831  
Total assets     4,300,168,171  
         
LIABILITIES        
Collateral on securities loaned, at value     102,747,534  
Payables:        
Investments purchased     82,352,950  
Variation margin on futures contracts     5,963,794  
Investment advisory fees     2,072,764  
Foreign taxes     28,377  
Total liabilities     193,165,419  
         
NET ASSETS   $ 4,107,002,752  
         
NET ASSETS CONSIST OF:        
Paid-in capital   $ 3,889,762,383  
Accumulated earnings     217,240,369  
NET ASSETS   $ 4,107,002,752  
         
Shares outstanding     76,350,000  
Net asset value   $ 53.79  
Shares authorized     200 million  
Par value   $ 0.001  
         
(a)  Securities loaned, at value   $ 97,567,315  
(b)  Investments, at cost — Unaffiliated   $ 2,737,412,234  
(c)  Investments, at cost — Affiliated   $ 110,545,921  
(d)  Foreign currency, at cost   $ 1,576  
(e)  Foreign currency collateral pledged, at cost   $ 9,962,782  

 

See notes to financial statements.

 

F i n a n c i a l   S t a t e m e n t s 29

 

 

 

Statements of Operations (unaudited)

Six Months Ended February 29, 2020

                         
    iShares
MSCI
Australia ETF
    iShares
MSCI
Canada ETF
    iShares
MSCI Japan
ETF
    iShares
MSCI Mexico
ETF
 
                         
INVESTMENT INCOME                        
Dividends — Unaffiliated   $ 31,077,959     $ 42,926,337     $ 142,018,002     $ 8,134,060  
Dividends — Affiliated     8,844       12,619       56,897       6,752  
Interest — Unaffiliated     208       2,465             4,616  
Securities lending income — Affiliated — net     1,441       1,181,192       139,183       6,259  
Foreign taxes withheld     (580,258 )     (6,431,987 )     (14,197,842 )     (535,200 )
Total investment income     30,508,194       37,690,626       128,016,240       7,616,487  
                                 
EXPENSES                                
Investment advisory fees     3,927,183       6,879,065       32,667,310       2,062,094  
Total expenses     3,927,183       6,879,065       32,667,310       2,062,094  
Net investment income     26,581,011       30,811,561       95,348,930       5,554,393  
                                 
REALIZED AND UNREALIZED GAIN (LOSS)                                
Net realized gain (loss) from:                                
Investments — Unaffiliated     (16,115,062 )     (108,840,900 )     (64,484,977 )     (30,627,167 )
Investments — Affiliated     332       8,941       9,806       (35 )
In-kind redemptions — Unaffiliated     53,089,385       90,048,664       326,422,258       26,844,750  
Futures contracts     454,800       84,131       10,651,726       13,079  
Foreign currency transactions     (140,949 )     83,839       (2,019,721 )     (43,768 )
Net realized gain (loss)     37,288,506       (18,615,325 )     270,579,092       (3,813,141 )
Net change in unrealized appreciation (depreciation) on:                                
Investments — Unaffiliated     (124,885,416 )     (22,673,780 )     (279,077,314 )     20,655,290  
Investments — Affiliated     2       (6,873 )     (3,311 )     343  
Futures contracts     (937,733 )     (400,325 )     (6,262,319 )     (113,315 )
Foreign currency translations     (348,277 )     (158,373 )     816,867       (85,535 )
Net change in unrealized appreciation (depreciation)     (126,171,424 )     (23,239,351 )     (284,526,077 )     20,456,783  
Net realized and unrealized gain (loss)     (88,882,918 )     (41,854,676 )     (13,946,985 )     16,643,642  
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS   $ (62,301,907 )   $ (11,043,115 )   $ 81,401,945     $ 22,198,035  

 

See notes to financial statements.

 

30 2 0 2 0   i S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

Statements of Operations (unaudited) (continued)

Six Months Ended February 29, 2020

       
    iShares
MSCI South
Korea ETF
 
         
INVESTMENT INCOME        
Dividends — Unaffiliated   $ 81,238,715  
Dividends — Affiliated     68,525  
Interest — Unaffiliated     557  
Securities lending income — Affiliated — net     5,809,056  
Foreign taxes withheld     (12,167,567 )
Other foreign taxes     (7,994 )
Total investment income     74,941,292  
         
EXPENSES        
Investment advisory fees     12,606,844  
Total expenses     12,606,844  
Net investment income     62,334,448  
         
REALIZED AND UNREALIZED GAIN (LOSS)        
Net realized gain (loss) from:        
Investments — Unaffiliated     (35,724,739 )
Investments — Affiliated     (3,648 )
Futures contracts     927,042  
Foreign currency transactions     (106,804 )
Net realized loss     (34,908,149 )
Net change in unrealized appreciation (depreciation) on:        
Investments — Unaffiliated     76,029,656  
Investments — Affiliated     20,079  
Futures contracts     (5,178,007 )
Foreign currency translations     (2,592,950 )
Net change in unrealized appreciation (depreciation)     68,278,778  
Net realized and unrealized gain     33,370,629  
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.   $ 95,705,077  

 

See notes to financial statements.

 

F i n a n c i a l   S t a t e m e n t s 31

 

 

 

Statements of Changes in Net Assets

 

    iShares
MSCI Australia ETF
    iShares
MSCI Canada ETF
 
    Six Months Ended 02/29/20
(unaudited)
    Year Ended
08/31/19
    Six Months Ended 02/29/20
(unaudited)
    Year Ended
08/31/19
 
                                 
INCREASE (DECREASE) IN NET ASSETS                                
                                 
OPERATIONS                                
Net investment income   $ 26,581,011     $ 59,623,655     $ 30,811,561     $ 60,051,016  
Net realized gain (loss)     37,288,506       (34,512,791 )     (18,615,325 )     (103,704,795 )
Net change in unrealized appreciation (depreciation)     (126,171,424 )     (9,995,015 )     (23,239,351 )     18,680,770  
Net increase (decrease) in net assets resulting from operations     (62,301,907 )     15,115,849       (11,043,115 )     (24,973,009 )
                                 
DISTRIBUTIONS TO SHAREHOLDERS(a)                                
Decrease in net assets resulting from distributions to shareholders     (35,038,080 )     (71,965,308 )     (37,421,735 )     (63,960,878 )
                                 
CAPITAL SHARE TRANSACTIONS                                
Net increase (decrease) in net assets derived from capital share transactions     (3,196,318 )     93,669,497       (169,759,150 )     (287,106,743 )
                                 
NET ASSETS                                
Total increase (decrease) in net assets     (100,536,305 )     36,820,038       (218,224,000 )     (376,040,630 )
Beginning of period     1,399,590,202       1,362,770,164       2,618,586,332       2,994,626,962  
End of period   $ 1,299,053,897     $ 1,399,590,202     $ 2,400,362,332     $ 2,618,586,332  

 

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

 

See notes to financial statements.

 

32 2 0 2 0   i S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

Statements of Changes in Net Assets (continued)

                         
    iShares
MSCI Japan ETF
    iShares
MSCI Mexico ETF
 
    Six Months Ended
02/29/20
(unaudited)
    Year Ended
08/31/19
    Six Months Ended
02/29/20
(unaudited)
    Year Ended
08/31/19
 
                                 
INCREASE (DECREASE) IN NET ASSETS                                
                                 
OPERATIONS                                
Net investment income   $ 95,348,930     $ 247,265,802     $ 5,554,393     $ 23,960,370  
Net realized gain (loss)     270,579,092       409,682,495       (3,813,141 )     (100,111,090 )
Net change in unrealized appreciation (depreciation)     (284,526,077 )     (1,725,742,453 )     20,456,783       (62,853,146 )
Net increase (decrease) in net assets resulting from operations     81,401,945       (1,068,794,156 )     22,198,035       (139,003,866 )
                                 
DISTRIBUTIONS TO SHAREHOLDERS(a)                                
Decrease in net assets resulting from distributions to shareholders     (169,474,596 )     (229,873,912 )     (8,809,713 )     (25,697,670 )
                                 
CAPITAL SHARE TRANSACTIONS                                
Net increase (decrease) in net assets derived from capital share transactions     (1,639,569,977 )     (3,504,195,955 )     77,023,725       (377,985,490 )
                                 
NET ASSETS                                
Total increase (decrease) in net assets     (1,727,642,628 )     (4,802,864,023 )     90,412,047       (542,687,026 )
Beginning of period     12,170,174,241       16,973,038,264       626,243,227       1,168,930,253  
End of period   $ 10,442,531,613     $ 12,170,174,241     $ 716,655,274     $ 626,243,227  

 

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

 

See notes to financial statements.

 

F i n a n c i a l   S t a t e m e n t s 33

 

 

 

Statements of Changes in Net Assets (continued)

             
    iShares
MSCI South Korea ETF
 
    Six Months Ended 02/29/20
(unaudited)
    Year Ended
08/31/19
 
                 
INCREASE (DECREASE) IN NET ASSETS                
                 
OPERATIONS                
Net investment income   $ 62,334,448     $ 69,657,107  
Net realized loss     (34,908,149 )     (154,004,207 )
Net change in unrealized appreciation (depreciation)     68,278,778       (823,249,004 )
Net increase (decrease) in net assets resulting from operations     95,705,077       (907,596,104 )
                 
DISTRIBUTIONS TO SHAREHOLDERS(a)                
Decrease in net assets resulting from distributions to shareholders     (94,999,174 )     (52,766,055 )
                 
CAPITAL SHARE TRANSACTIONS                
Net increase in net assets derived from capital share transactions     257,732,666       902,035,428  
                 
NET ASSETS                
Total increase (decrease) in net assets     258,438,569       (58,326,731 )
Beginning of period     3,848,564,183       3,906,890,914  
End of period   $ 4,107,002,752     $ 3,848,564,183  

 

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

 

See notes to financial statements.

 

34 2 0 2 0   i S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

Financial Highlights

(For a share outstanding throughout each period)

 

    iShares MSCI Australia ETF  
    Six Months Ended 02/29/20
(unaudited)
    Year Ended
08/31/19
    Year Ended
08/31/18
    Year Ended
08/31/17
    Year Ended
08/31/16
    Year Ended
08/31/15
 
                                                 
Net asset value, beginning of period   $ 21.67     $ 22.56     $ 22.58     $ 20.30     $ 18.66     $ 27.15  
Net investment income(a)     0.38       1.00       0.90       0.84       0.84       1.23  
Net realized and unrealized gain (loss)(b)     (1.42 )     (0.70 )     0.07       2.45       1.59       (8.49 )
Net increase (decrease) from investment operations     (1.04 )     0.30       0.97       3.29       2.43       (7.26 )
                                                 
Distributions(c)                                                
From net investment income     (0.46 )     (1.19 )     (0.99 )     (1.01 )     (0.79 )     (1.23 )
Total distributions     (0.46 )     (1.19 )     (0.99 )     (1.01 )     (0.79 )     (1.23 )
                                                 
Net asset value, end of period   $ 20.17     $ 21.67     $ 22.56     $ 22.58     $ 20.30     $ 18.66  
                                                 
Total Return                                                
Based on net asset value     (5.01 )%(d)     1.75 %     4.43 %     16.70 %     13.36 %     (27.31 )%
                                                 
Ratios to Average Net Assets                                                
Total expenses     0.50 %(e)     0.50 %     0.47 %     0.49 %     0.48 %     0.48 %
Net investment income     3.38 %(e)     4.68 %     3.95 %     3.90 %     4.41 %     5.37 %
                                                 
Supplemental Data                                                
Net assets, end of period (000)   $ 1,299,054     $ 1,399,590     $ 1,362,770     $ 1,765,912     $ 1,668,702     $ 1,228,063  
Portfolio turnover rate(f)     3 %(d)     9 %     3 %     4 %     7 %     9 %

 

(a) Based on average shares outstanding.
(b) The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.
(c) Distributions for annual periods determined in accordance with U.S. federal income tax regulations.
(d) Not annualized.
(e) Annualized.
(f) Portfolio turnover rate excludes in-kind transactions.

 

See notes to financial statements.

 

F i n a n c i a l   H i g h l i g h t s 35

 

 

 

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    iShares MSCI Canada ETF  
    Six Months Ended
02/29/20
(unaudited)
    Year Ended
08/31/19
    Year Ended
08/31/18
    Year Ended
08/31/17
    Year Ended
08/31/16
    Year Ended
08/31/15
 
                                                 
Net asset value, beginning of period   $ 28.22     $ 28.79     $ 27.83     $ 25.33     $ 24.02     $ 32.93  
Net investment income(a)     0.33       0.62       0.58       0.51       0.51       0.54  
Net realized and unrealized gain (loss)(b)     (0.60 )     (0.53 )     0.97       2.47       1.29       (8.85 )
Net increase (decrease) from investment operations     (0.27 )     0.09       1.55       2.98       1.80       (8.31 )
                                                 
Distributions(c)                                                
From net investment income     (0.39 )     (0.66 )     (0.59 )     (0.48 )     (0.49 )     (0.60 )
Total distributions     (0.39 )     (0.66 )     (0.59 )     (0.48 )     (0.49 )     (0.60 )
                                                 
Net asset value, end of period   $ 27.56     $ 28.22     $ 28.79     $ 27.83     $ 25.33     $ 24.02  
                                                 
Total Return                                                
Based on net asset value     (1.04 )%(d)     0.56 %     5.61 %     11.88 %     7.73 %     (25.48 )%
                                                 
Ratios to Average Net Assets                                                
Total expenses     0.50 %(e)     0.49 %     0.47 %     0.49 %     0.48 %     0.48 %
Net investment income     2.24 %(e)     2.26 %     2.01 %     1.93 %     2.18 %     1.92 %
                                                 
Supplemental Data                                                
Net assets, end of period (000)   $ 2,400,362     $ 2,618,586     $ 2,994,627     $ 3,127,920     $ 3,097,794     $ 1,931,454  
Portfolio turnover rate(f)     6 %(d)     6 %     3 %     6 %     4 %     5 %

 

(a) Based on average shares outstanding.
(b) The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.
(c) Distributions for annual periods determined in accordance with U.S. federal income tax regulations.
(d) Not annualized.
(e) Annualized.
(f) Portfolio turnover rate excludes in-kind transactions.

 

See notes to financial statements.

 

36 2 0 2 0   i S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    iShares MSCI Japan ETF  
    Six Months Ended 02/29/20 (unaudited)     Year Ended
08/31/19
    Year Ended
08/31/18
    Year Ended
08/31/17(a)
    Year Ended
08/31/16(a)
    Year Ended
08/31/15(a)
 
                                                 
Net asset value, beginning of period   $ 54.05     $ 58.45     $ 54.57     $ 49.05     $ 48.61     $ 47.32  
Net investment income(b)     0.42       0.92       0.87       0.49       0.72       0.60  
Net realized and unrealized gain (loss)(c)     (0.24 )     (4.43 )     3.87       5.96       0.44       1.22  
Net increase (decrease) from investment operations     0.18       (3.51 )     4.74       6.45       1.16       1.82  
                                                 
Distributions(d)                                                
From net investment income     (0.72 )     (0.89 )     (0.86 )     (0.93 )     (0.72 )     (0.53 )
Total distributions     (0.72 )     (0.89 )     (0.86 )     (0.93 )     (0.72 )     (0.53 )
                                                 
Net asset value, end of period   $ 53.51     $ 54.05     $ 58.45     $ 54.57     $ 49.05     $ 48.61  
                                                 
Total Return                                                
Based on net asset value     0.19 %(e)     (5.96 )%     8.67 %     13.31 %     2.44 %     3.84 %
                                                 
Ratios to Average Net Assets                                                
Total expenses     0.50 %(f)     0.49 %     0.47 %     0.49 %     0.48 %     0.48 %
Net investment income     1.46 %(f)     1.68 %     1.46 %     1.45 %     1.53 %     1.20 %
                                                 
Supplemental Data                                                
Net assets, end of period (000)   $ 10,442,532     $ 12,170,174     $ 16,973,038     $ 16,017,689     $ 14,015,180     $ 19,147,802  
Portfolio turnover rate(g)     1 %(e)     7 %     4 %     4 %     4 %     2 %

 

(a) Per share amounts reflect a one-for-four reverse stock split effective after the close of trading on November 4, 2016.
(b) Based on average shares outstanding.
(c) The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.
(d) Distributions for annual periods determined in accordance with U.S. federal income tax regulations.
(e) Not annualized.
(f) Annualized.
(g) Portfolio turnover rate excludes in-kind transactions.

 

See notes to financial statements.

 

F i n a n c i a l   H i g h l i g h t s 37

 

 

 

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    iShares MSCI Mexico ETF  
    Six Months Ended
02/29/20
(unaudited)
    Year Ended
08/31/19
    Year Ended
08/31/18
    Year Ended
08/31/17
    Year Ended 08/31/16     Year Ended
08/31/15
 
                                                 
Net asset value, beginning of period   $ 41.47     $ 50.38     $ 56.68     $ 50.48     $ 52.70     $ 71.51  
Net investment income(a)     0.30       1.09       0.95       0.88       0.93       0.68  
Net realized and unrealized gain (loss)(b)     (0.15 )     (8.75 )     (6.17 )     6.10       (1.82 )     (18.56 )
Net increase (decrease) from investment operations     0.15       (7.66 )     (5.22 )     6.98       (0.89 )     (17.88 )
                                                 
Distributions(c)                                                
From net investment income     (0.43 )     (1.25 )     (1.08 )     (0.78 )     (1.33 )     (0.93 )
Total distributions     (0.43 )     (1.25 )     (1.08 )     (0.78 )     (1.33 )     (0.93 )
                                                 
Net asset value, end of period   $ 41.19     $ 41.47     $ 50.38     $ 56.68     $ 50.48     $ 52.70  
                                                 
Total Return                                                
Based on net asset value     0.27 %(d)     (15.23 )%     (9.02 )%     14.03 %     (1.68 )%     (25.10 )%
                                                 
Ratios to Average Net Assets                                                
Total expenses     0.50 %(e)     0.49 %     0.47 %     0.49 %     0.48 %     0.48 %
Net investment income     1.34 %(e)     2.46 %     1.87 %     1.79 %     1.82 %     1.10 %
                                                 
Supplemental Data                                                
Net assets, end of period (000)   $ 716,655     $ 626,243     $ 1,168,930     $ 1,320,642     $ 1,317,518     $ 1,206,942  
Portfolio turnover rate(f)     4 %(d)     5 %     7 %     8 %     8 %     13 %

 

(a) Based on average shares outstanding.
(b) The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.
(c) Distributions for annual periods determined in accordance with U.S. federal income tax regulations.
(d) Not annualized.
(e) Annualized.
(f) Portfolio turnover rate excludes in-kind transactions.

 

See notes to financial statements.

 

38 2 0 2 0   i S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    iShares MSCI South Korea ETF  
    Six Months Ended 02/29/20
(unaudited)
    Year Ended
08/31/19
    Year Ended 08/31/18     Year Ended 08/31/17     Year Ended
08/31/16
    Year Ended
08/31/15
 
                                                   
Net asset value, beginning of period   $ 53.34     $ 67.65     $ 68.19     $ 56.89     $ 48.15     $ 66.42  
Net investment income(a)     0.85       0.97       0.94       0.64       0.56       0.46  
Net realized and unrealized gain (loss)(b)     0.91       (14.49 )     0.70       11.31       9.38       (18.07 )
Net increase (decrease) from investment operations     1.76       (13.52 )     1.64       11.95       9.94       (17.61 )
                                                 
Distributions(c)                                                
From net investment income     (1.31 )     (0.79 )     (2.18 )     (0.65 )     (1.20 )     (0.66 )
Total distributions     (1.31 )     (0.79 )     (2.18 )     (0.65 )     (1.20 )     (0.66 )
                                                 
Net asset value, end of period   $ 53.79     $ 53.34     $ 67.65     $ 68.19     $ 56.89     $ 48.15  
                                                 
Total Return                                                
Based on net asset value     3.05 %(d)     (20.08 )%     2.15 %     21.28 %     20.92 %     (26.58 )%
                                                 
Ratios to Average Net Assets                                                
Total expenses     0.58 %(e)     0.59 %     0.59 %     0.62 %     0.64 %     0.62 %
Net investment income     2.87 %(e)     1.62 %     1.31 %     1.05 %     1.09 %     0.81 %
                                                 
Supplemental Data                                                
Net assets, end of period (000)   $ 4,107,003     $ 3,848,564     $ 3,906,891     $ 3,784,638     $ 3,452,970     $ 3,160,954  
Portfolio turnover rate(f)     7 %(d)(g)     16 %(g)     18 %(g)     16 %(g)     22 %(g)     24 %(g)
(a) Based on average shares outstanding.
(b) The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.
(c) Distributions for annual periods determined in accordance with U.S. federal income tax regulations.
(d) Not annualized.  
(e) Annualized.  
(f) Portfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash in U.S. dollars ("cash creations").  
(g) Portfolio turnover rate excluding cash creations was as follows:     5 %     5 %     11 %     6 %     10 %     10 %

 

See notes to financial statements.

 

F i n a n c i a l   H i g h l i g h t s 39

 

 

 

Notes to Financial Statements (unaudited)

 

1.     ORGANIZATION

 

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

 

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

 

iShares ETF Diversification
Classification
MSCI Australia Non-diversified
MSCI Canada Diversified
MSCI Japan Diversified
MSCI Mexico Non-diversified
MSCI South Korea Non-diversified

 

2.     SIGNIFICANT ACCOUNTING POLICIES

 

The following significant accounting policies are consistently followed by each Fund in the preparation of its financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies.

 

Investment Transactions and Income Recognition: Investment transactions are accounted for on trade date. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recognized on the ex-dividend date, net of any foreign taxes withheld at source. Any taxes withheld that are reclaimable from foreign tax authorities are reflected in tax reclaims receivable. Distributions received by the Funds may include a return of capital that is estimated by management. Such amounts are recorded as a reduction of the cost of investments or reclassified to capital gains. Upon notification from issuers, some of the dividend income received from a real estate investment trust may be re-designated as a return of capital or capital gain. Non-cash dividends, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Interest income is accrued daily.

 

Foreign CurrencyTranslation: The accounting records of the Funds are maintained in U.S. dollars. Foreign currencies, as well as investment securities and other assets and liabilities denominated in non-U.S. currencies are translated to U.S. dollars using prevailing market rates as quoted by one or more data service providers. Purchases and sales of investments, income receipts and expense payments are translated into U.S. dollars on the respective dates of such transactions.

 

Each Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of investments. Such fluctuations are reflected by the Funds as a component of net realized and unrealized gain (loss) from investments for financial reporting purposes. Each Fund reports realized currency gain (loss) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for U.S. federal income tax purposes.

 

Foreign Taxes: The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which each Fund invests. These foreign taxes, if any, are paid by each Fund and are reflected in its statement of operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of February 29, 2020, if any, are disclosed in the statement of assets and liabilities.

 

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

 

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

 

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

 

40 2 0 2 0   i S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

Notes to Financial Statements (unaudited) (continued)

 

3.     INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

 

Investment Valuation Policies: Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date should the reporting period end on a day that the Fund’s listing exchange is not open. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. A fund determines the fair value of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Directors of the Company (the “Board”). The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.

 

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

Equity investments traded on a recognized securities exchange are valued at that day’s last traded price or official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price.
Investments in open-end U.S. mutual funds (including money market funds) are valued at that day’s published net asset value (“NAV”).
Futures contract notional values are determined based on that day’s last reported settlement price on the exchange where the contract is traded.

 

If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of an investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with policies approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee include market approach, income approach and the cost approach. Valuation techniques used under these approaches take into consideration inputs that include but are not limited to (i) attributes specific to the investment; (ii) the principal market for the investment; (iii) the customary participants in the principal market for the investment; (iv) data assumptions by market participants for the investment, if reasonably available; (v) quoted prices for similar investments in active markets; and (vi) other inputs, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or default rates.

 

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.

 

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

 

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

Level 1 – Unadjusted price quotations in active markets for identical assets or liabilities;
Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; and
Level 3 – Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, (including the Global Valuation Committee’s assumptions used in determining the fair value of financial instruments).

 

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgement exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The fair value hierarchy for each Fund’s investments is included in its schedule of investments. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

 

4.     SECURITIES AND OTHER INVESTMENTS

 

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

 

As of February 29, 2020, any securities on loan were collateralized by cash and/or U.S. government obligations. Cash collateral received was invested in money market funds managed by BlackRock FundAdvisors (“BFA”), the Funds' investment adviser, or its affiliates and is disclosed in the schedules of investments. Any non-cash collateral

 

N o t e s   t o   F i n a n c i a l   S t a t e m e n t s 41

 

 

 

Notes to Financial Statements (unaudited) (continued)

 

received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan for each Fund, if any, are also disclosed in its schedule of investments. The market value of any securities on loan as of February 29, 2020 and the value of the related cash collateral are disclosed in the statements of assets and liabilities.

 

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

 

The following table is a summary of the securities lending agreements by counterparty which are subject to offset under an MSLA as of February 29, 2020:

 

iShares ETF and Counterparty   Market Value of
Securities on Loan
    Cash Collateral
Received
(a)   Non-Cash Collateral
Received
    Net Amount  
MSCI Australia                        
Goldman Sachs & Co.   $ 8,275     $ 8,275     $     $  
                                 
MSCI Canada                                
Barclays Capital Inc.   $ 128,664     $ 128,664     $     $  
Citigroup Global Markets Inc.     371,417       371,417              
Credit Suisse Securities (USA) LLC     1,944,059       1,944,059              
Goldman Sachs & Co.     1,805,690       1,805,690              
Morgan Stanley & Co. LLC     1,607,572       1,607,572              
Scotia Capital (USA) Inc.     587,517       587,517              
UBS AG     245,536       245,536              
Wells Fargo Securities LLC     829,195       829,195              
    $ 7,519,650     $ 7,519,650     $     $  
MSCI Japan                                
BofA Securities, Inc.   $ 476,891     $ 476,891     $     $  
Goldman Sachs & Co.     5,139,982       5,139,982              
JPMorgan Securities LLC     1,199,691       1,199,691              
Macquarie Bank Limited     1,594,994       1,594,994              
Morgan Stanley & Co. LLC     7,198,635       7,198,635              
State Street Bank & Trust Company     24,549       24,549              
    $ 15,634,742     $ 15,634,742     $     $  
MSCI Mexico                                
BofA Securities, Inc.   $ 67,813     $ 67,813     $     $  
Morgan Stanley & Co. LLC     511,266       511,266              
UBS Securities LLC     800,785       800,785              
    $ 1,379,864     $ 1,379,864     $     $  
MSCI South Korea                                
Barclays Capital Inc.   $ 3,792,102     $ 3,792,102     $     $  
BofA Securities, Inc.     20,507,625       20,507,625              
Citigroup Global Markets Inc.     7,704,652       7,704,652              
Goldman Sachs & Co.     25,713,668       25,713,668              
Jefferies LLC     262,207       262,207              
JPMorgan Securities LLC     19,041,993       19,041,993              
Macquarie Bank Limited     1,188,967       1,188,967              
Morgan Stanley & Co. LLC     19,284,516       19,284,516              
UBS Securities LLC     71,585       71,585              
    $ 97,567,315     $ 97,567,315     $     $  

 

(a) Collateral received in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by each Fund is disclosed in the Fund's statement of assets and liabilities.

 

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

 

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Notes to Financial Statements (unaudited) (continued)

 

5.     DERIVATIVE FINANCIAL INSTRUMENTS

 

Futures Contracts: Each Fund’s use of futures contracts is generally limited to cash equitization. This involves the use of available cash to invest in index futures contracts in order to gain exposure to the equity markets represented in or by the Fund’s underlying index and is intended to allow the Fund to better track its underlying index. Futures contracts are standardized, exchange-traded agreements to buy or sell a specific quantity of an underlying instrument at a set price on a future date. Depending on the terms of a contract, a futures contract is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date.

 

Upon entering into a futures contract, a fund is required to pledge to the executing broker which holds segregated from its own assets, an amount of cash, U.S. government securities or other high-quality debt and equity securities equal to the minimum initial margin requirements of the exchange on which the contract is traded. Securities deposited as initial margin, if any, are designated in the schedule of investments and cash deposited, if any, is shown as cash pledged for futures contracts in the statement of assets and liabilities.

 

Pursuant to the contract, a fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation or depreciation and, if any, shown as variation margin receivable or payable on futures contracts in the statement of assets and liabilities. When the contract is closed, a realized gain or loss is recorded in the statement of operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. Losses may arise if the notional value of a futures contract decreases due to an unfavorable change in the market rates or values of the underlying instrument during the term of the contract or if the counterparty does not perform under the contract. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and the assets underlying such contracts.

 

6.     INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

 

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

 

For its investment advisory services to each of the iShares MSCI Australia, iShares MSCI Canada, iShares MSCI Japan and iShares MSCI Mexico ETFs, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Funds, based on each Fund’s allocable portion of the aggregate of the average daily net assets of the Fund and certain other iShares funds, as follows:

 

Aggregate Average Daily Net Assets Investment Advisory Fee   
First $7 billion 0.59%
Over $7 billion, up to and including $11 billion 0.54   
Over $11 billion, up to and including $24 billion 0.49   
Over $24 billion, up to and including $48 billion 0.44   
Over $48 billion, up to and including $72 billion 0.40   
Over $72 billion, up to and including $96 billion 0.36   
Over $96 billion 0.32   

 

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

 

Aggregate Average Daily Net Assets Investment Advisory Fee    
First $2 billion 0.74%
Over $2 billion, up to and including $4 billion 0.69   
Over $4 billion, up to and including $8 billion 0.64  
Over $8 billion, up to and including $16 billion 0.57  
Over $16 billion, up to and including $24 billion 0.51  
Over $24 billion, up to and including $32 billion 0.48  
Over $32 billion 0.45  

 

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

 

Securities Lending: The U.S. Securities and Exchange Commission (the “SEC”) has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan in a money market fund managed by BFA, or its affiliates, however, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees each Fund bears to an annual rate of 0.04% (the “collateral investment fees”). Securities lending income is equal to the total of income earned from the reinvestment of cash collateral (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. Each Fund retains a portion of securities lending income and remits the remaining portion to BTC as compensation for its services as securities lending agent.

 

N o t e s   t o   F i n a n c i a l   S t a t e m e n t s 43

 

 

 

Notes to Financial Statements (unaudited) (continued)

 

Pursuant to the current securities lending agreement, each Fund retains 82% of securities lending income (which excludes collateral investment fees) and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

 

In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across all 1940 Act iShares exchange-traded funds (the “iShares ETF Complex”) in that calendar year exceeds a specified threshold, each Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year 85% of securities lending income (which excludes collateral investment fees), and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

 

The share of securities lending income earned by each Fund is shown as securities lending income – affiliated – net in its statement of operations. For the six months ended February 29, 2020, the Funds paid BTC the following amounts for securities lending agent services:

 

iShares ETF   Fees Paid
to BTC
 
MSCI Australia   $ 371  
MSCI Canada     263,509  
MSCI Japan     38,240  
MSCI Mexico     1,567  
MSCI South Korea     1,308,478  

 

Officers and Directors: Certain officers and/or directors of the Company are officers and/or directors of BlackRock or its affiliates.

 

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

 

For the six months ended February 29, 2020, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:

                   
iShares ETF   Purchases     Sales     Net Realized
Gain (Loss)
 
MSCI Australia   $ 4,302,401     $ 4,813,196     $ (2,893,650 )
MSCI Japan     50,442,620       13,225,531       (2,913,123 )

 

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

 

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

 

7.       PURCHASES AND SALES

 

For the six months ended February 29, 2020, purchases and sales of investments, excluding in-kind transactions and short-term investments, were as follows:

 

iShares ETF   Purchases     Sales  
MSCI Australia   $ 49,794,038     $ 43,964,617  
MSCI Canada     154,491,865       157,889,176  
MSCI Japan     133,359,471       173,287,534  
MSCI Mexico     38,897,665       32,793,070  
MSCI South Korea     449,793,089       285,242,138  

 

For the six months ended February 29, 2020, in-kind transactions were as follows:

 

iShares ETF   In-kind Purchases     In-kind
Sales
 
MSCI Australia   $ 370,919,875     $ 384,798,777  
MSCI Canada     375,276,237       543,767,431  
MSCI Japan     2,513,142,188       4,200,877,756  
MSCI Mexico     1,099,469,612       1,031,899,210  

 

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Notes to Financial Statements (unaudited) (continued)

 

8.     INCOME TAX INFORMATION

 

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

 

Management has analyzed tax laws and regulations and their application to the Funds as of February 29, 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.

 

As of August 31, 2019, the Funds had non-expiring capital loss carryforwards available to offset future realized capital gains as follows:

 

iShares ETF   Non-Expiring  
MSCI Australia   $ 180,293,854  
MSCI Canada     546,535,951  
MSCI Japan     917,415,410  
MSCI Mexico     256,843,766  
MSCI South Korea     472,501,073  

 

A fund may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” Such fund may elect to mark-to-market annually the shares of each passive foreign investment company and would be required to distribute to shareholders any such marked-to-market gains.

 

As of February 29, 2020, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:

                         
iShares ETF   Tax Cost     Gross Unrealized
Appreciation
    Gross Unrealized
Depreciation
    Net Unrealized
Appreciation
(Depreciation)
 
MSCI Australia   $ 1,703,153,997     $ 65,371,809     $ (480,887,444 )   $ (415,515,635 )
MSCI Canada     2,873,361,474       171,400,033       (642,677,264 )     (471,277,231 )
MSCI Japan     12,525,168,217       476,007,820       (2,594,097,989 )     (2,118,090,169 )
MSCI Mexico     1,131,496,807       4,970,994       (421,226,074 )     (416,255,080 )
MSCI South Korea     3,412,430,586       1,621,632,891       (889,014,717 )     732,618,174  

 

9.     PRINCIPAL RISKS

 

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

 

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

 

Market Risk: Market risk arises mainly from uncertainty about future values of financial instruments influenced by price, currency and interest rate movements. It represents the potential loss a fund may suffer through holding market positions in the face of market movements. A fund is exposed to market risk by its investment in equity, fixed income and/or financial derivative instruments or by its investment in underlying funds. The fair value of securities held by a fund may decline due to general market conditions, economic trends or events that are not specifically related to the issuers of the securities including local, regional or global political, social or economic instability or to factors that affect a particular industry or group of industries. 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. The extent of a fund’s exposure to market risk is the market value of the investments held as shown in the fund’s schedule of investments.

 

Investing in the securities of non-U.S. issuers involves certain considerations and risks not typically associated with securities of U.S. issuers. Such risks include, but are not limited to: differences in accounting, auditing and financial reporting standards; more substantial governmental involvement in the economy; higher inflation rates, greater social, economic and political uncertainties; possible nationalization or expropriation of assets; less availability of public information about issuers; imposition of withholding or other taxes; higher transaction and custody costs and delays in settlement procedures; and lower level of regulation of the securities markets and issuers. Non-U.S. securities may be less liquid, more difficult to value, and have greater price volatility due to exchange rate fluctuations. These and other risks are heightened for investments in issuers from countries with less developed capital markets.

 

N o t e s   t o   F i n a n c i a l   S t a t e m e n t s 45

 

 

 

Notes to Financial Statements (unaudited) (continued)

 

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 impact of the pandemic may be short term or may last for an extended period of time.

 

Credit Risk: Credit risk is the risk that an issuer or guarantor of debt instruments or the counterparty to a financial transaction, including derivatives contracts, repurchase agreements or loans of portfolio securities, is unable or unwilling to make timely interest and/or principal payments or to otherwise honor its obligations. BFA and its affiliates manage counterparty credit risk by entering into transactions only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose a fund to issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of a fund’s exposure to credit and counterparty risks with respect to those financial assets is approximated by their value recorded in its statement of assets and liabilities.

 

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

 

When a fund concentrates its investments in issuers located in a single country or a limited number of countries, it assumes the risk that economic, regulatory, political and social conditions in that country or those countries may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio.

 

When a fund concentrates its investments in securities within a single or limited number of market sectors, it assumes the risk that economic, regulatory, political and social conditions affecting such sectors may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio.

 

10.  CAPITAL SHARE TRANSACTIONS

 

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

 

Transactions in capital shares were as follows:

 

    Six Months Ended
02/29/20
    Year Ended
08/31/19
 
iShares ETF     Shares       Amount       Shares       Amount  
MSCI Australia                                
Shares sold     17,200,000     $ 384,832,552       17,200,000     $ 365,456,184  
Shares redeemed     (17,400,000 )     (388,028,870 )     (13,000,000 )     (271,786,687 )
Net increase(decrease)     (200,000 )   $ (3,196,318 )     4,200,000     $ 93,669,497  
MSCI Canada                                
Shares sold     12,800,000     $ 377,258,166       16,000,000     $ 450,405,632  
Shares redeemed     (18,500,000 )     (547,017,316 )     (27,200,000 )     (737,512,375 )
Net decrease     (5,700,000 )   $ (169,759,150 )     (11,200,000 )   $ (287,106,743 )
MSCI Japan                                
Shares sold     43,950,000     $ 2,567,996,616       96,150,000     $ 5,263,571,116  
Shares redeemed     (73,950,000 )     (4,207,566,593 )     (161,400,000 )     (8,767,767,071 )
Net decrease     (30,000,000 )   $ (1,639,569,977 )     (65,250,000 )   $ (3,504,195,955 )
MSCI Mexico                                
Shares sold     25,200,000     $ 1,112,553,553       34,300,000     $ 1,475,864,783  
Shares redeemed     (22,900,000 )     (1,035,529,828 )     (42,400,000 )     (1,853,850,273 )
Net increase(decrease)     2,300,000     $ 77,023,725       (8,100,000 )   $ (377,985,490 )
MSCI South Korea                                
Shares sold     4,200,000     $ 257,732,666       23,050,000     $ 1,390,211,716  
Shares redeemed                 (8,650,000 )     (488,176,288 )
Net increase     4,200,000     $ 257,732,666       14,400,000     $ 902,035,428  

 

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

 

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Notes to Financial Statements (unaudited) (continued)

 

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

 

11.  LEGAL PROCEEDINGS

 

On June 16, 2016, investors in certain iShares funds (iShares Core S&P Small-Cap ETF, iShares Russell 1000 Growth ETF, iShares Core S&P 500 ETF, iShares Russell Mid-Cap Growth ETF, iShares Russell Mid-Cap ETF, iShares Russell Mid-Cap Value ETF, iShares Select Dividend ETF, iShares Morningstar Mid-Cap ETF, iShares Morningstar Large-Cap ETF, iShares U.S. Aerospace & Defense ETF and iShares Preferred and Income Securities ETF) filed a class action lawsuit against iShares Trust, BlackRock, Inc. and certain of its advisory affiliates, and certain directors/trustees and officers of the Funds (collectively, “Defendants”) in California State Court. The lawsuit alleges the Defendants violated federal securities laws by failing to adequately disclose in the prospectuses issued by the funds noted above the risks of using stop-loss orders in the event of a ‘flash crash’, such as the one that occurred on May 6, 2010. On September 18, 2017, the court issued a Statement of Decision holding that the Plaintiffs lack standing to assert their claims. On October 11, 2017, the court entered final judgment dismissing all of the Plaintiffs’ claims with prejudice. In an opinion dated January 23, 2020, the California Court of Appeal affirmed the dismissal of Plaintiffs’ claims. On March 3, 2020, plaintiffs filed a petition for review by the California Supreme Court.

 

12.  SUBSEQUENT EVENTS

 

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

 

N o t e s   t o   F i n a n c i a l   S t a t e m e n t s 47

 

 

 

Statement Regarding Liquidity Risk Management Program

 

The Securities and Exchange Commission adopted Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”) to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders.

 

The Board of Directors (the “Board”) of iShares MSCI Australia ETF, iShares MSCI Canada ETF, iShares MSCI Japan ETF, iShares MSCI Mexico ETF and iShares MSCI South Korea ETF met on December 3, 2019 (the “Meeting”) to review the liquidity risk management program (the “Program”) applicable to the iShares Funds (each, a “Fund”) pursuant to the Liquidity Rule. The Board has appointed BlackRock Fund Advisors (“BlackRock”), the investment adviser to the Funds, as the program administrator for each Fund’s Program, as applicable. BlackRock has delegated oversight of the Program to the 40 Act Liquidity Risk Management Committee (the “Committee”). At the Meeting, the Committee, on behalf of BlackRock, provided the Board with a report that addressed the operation of the Program and assessed its adequacy and effectiveness of implementation, including the operation of each Fund’s Highly Liquid Investment Minimum (“HLIM”) where applicable, and any material changes to the Program (the “Report”). The Report covered the period from December 1, 2018 through September 30, 2019 (the “Program Reporting Period”).

 

The Report described the Program’s liquidity classification methodology for categorizing a Fund’s investments (including derivative transactions) into one of four liquidity buckets. It also described BlackRock’s methodology in establishing a Fund’s HLIM and noted that the Committee reviews and ratifies the HLIM assigned to each Fund no less frequently than annually.

 

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

 

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

 

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

 

c) Holdings of cash and cash equivalents, as well as borrowing arrangements. The Committee considered that ETFs generally do not hold more than de minimus amounts of cash. Funds may borrow for temporary or emergency purposes, including to meet payments due from redemptions or to facilitate the settlement of securities or other transactions.

 

d) The relationship between an ETF’s portfolio liquidity and the way in which, and the prices and spreads at which, ETF shares trade, including the efficiency of the arbitrage function and the level of active participation by market participants, including authorized participants. The Committee monitored the prevailing bid/ask spread and the ETF price premium (or discount) to NAV for all ETFs and reviewed any persistent deviations from long-term averages.

 

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

 

There were no material changes to the Program during the Program Reporting Period. The Report provided to the Board stated that the Committee concluded that based on the operation of the functions, as described in the Report, the Program is operating as intended and is effective in implementing the requirements of the Liquidity Rule.

 

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Supplemental Information (unaudited)

 

Section 19(a) Notices

 

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

                     
    Total Cumulative Distributions
for the Fiscal Year-to-Date
    % Breakdown of the Total Cumulative
Distributions for the Fiscal Year-to-Date
 
iShares ETF   Net
Investment Income
  Net Realized Capital Gains   Return of Capital   Total Per Share     Net Investment Income   Net Realized Capital Gains   Return of Capital   Total Per Share  
MSCI Australia(a)   $ 0.422777   $   $ 0.033448   $ 0.456225       93 %   %   7 %   100 %
MSCI Canada(a)     0.254649         0.139264     0.393913       65         35     100  
MSCI Japan(a)     0.574175         0.141814     0.715989       80         20     100  
MSCI Mexico(a)     0.429796         0.004180     0.433976       99         1     100  
MSCI South Korea(a)     0.427177         0.880451     1.307628       33         67     100  

 

(a) The Fund estimates that it has distributed more than its net investment income and net realized capital gains; therefore, a portion of the distribution may be a return of capital. A return of capital may occur, for example, when some or all of the shareholder's investment in the Fund is returned to the shareholder. A return of capital does not necessarily reflect the Fund's investment performance and should not be confused with "yield" or "income". When distributions exceed total return performance, the difference will incrementally reduce the Fund's net asset value per share.

 

S u p p l e m e n t a l   I n f o r m a t i o n

49

 

 

 

General Information

 

Electronic Delivery

 

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

 

To enroll in electronic delivery:

 

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

 

Householding

 

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

 

Availability of Quarterly Schedule of Investments

 

The iShares Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT, and for reporting periods ended prior to March 31, 2019, filed such information on Form N-Q. The iShares Funds' Forms N-Q are available on the SEC’s website at sec.gov. The iShares Funds also disclose their complete schedule of portfolio holdings on a daily basis on the iShares website at iShares.com.

 

Availability of Proxy Voting Policies and Proxy Voting Records

 

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

 

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Glossary of Terms Used in this Report

 

Portfolio Abbreviations - Equity
   
CPO Certificates of Participation (Ordinary)
   
NVS Non-Voting Shares

 

G l o s s a r y   o f   T e r m s   U s e d   i n   t h i s   R e p o r t 

51

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Want to know more?

iShares.com   |   1-800-474-2737

 

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

 

Investing involves risk, including possible loss of principal.

 

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

 

The iShares Funds are not sponsored, endorsed, issued, sold or promoted by MSCI Inc., nor does this company make any representation regarding the advisability of investing in the iShares Funds. BlackRock is not affiliated with the company isted above.

 

©2020 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.

 

iS-SAR-815-0220

 

 

 

 

FEBRUARY 29, 2020

 

2020 Semi-Annual Report
(Unaudited)

 

iShares, Inc.

 

iShares Core MSCI Emerging Markets ETF | IEMG | NYSE Arca
iShares MSCI BRIC ETF | BKF | NYSE Arca
iShares MSCI Emerging Markets Asia ETF | EEMA | NASDAQ
iShares MSCI Emerging Markets Small-Cap ETF | EEMS | NYSE Arca

 

 

 

 

 

 

 

 

 

 

 

 

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

 

You may elect to receive all future reports in paper free of charge. If you hold accounts through a financial intermediary, you can follow the instructions included with this disclosure, if applicable, or contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. Please note that not all financial intermediaries may offer this service. Your election to receive reports in paper will apply to all funds held with your financial intermediary.

 

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive electronic delivery of shareholder reports and other communications by contacting your financial intermediary. Please note that not all financial intermediaries may offer this service. 

 

 

 

 

 

 

 

 

Fund Summary as of February 29, 2020 iShares® Core MSCI Emerging Markets ETF

 

Investment Objective

 

The iShares Core MSCI Emerging Markets ETF(the “Fund”) seeks to track the investment results of an index composed of large-, mid- and small-capitalization emerging market equities, as represented by the MSCI Emerging Markets Investable Market Index (the "Index"). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

 

 

Performance

 

          Average Annual Total Returns     Cumulative Total Returns  
                      Since                 Since  
    6 Months     1 Year     5 Years     Inception     1 Year     5 Years     Inception  
Fund NAV   2.53 %   (2.44 )%   2.46 %   2.20 %   (2.44 )%   12.92 %   17.41 %
Fund Market   3.22     (1.52 )   2.50     2.27     (1.52 )   13.16     18.01  
Index   2.58     (2.43 )   2.40     2.16     (2.43 )   12.59     17.06  

  

The inception date of the Fund was 10/18/12. The first day of secondary market trading was 10/22/12.

 

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 7 for more information.

 

 

Expense Example

 

Actual     Hypothetical 5% Return        
Beginning     Ending     Expenses     Beginning     Ending     Expenses     Annualized  
Account Value     Account Value     Paid During     Account Value     Account Value     Paid During     Expense  
(09/01/19)   (02/29/20)   the Period (a)   (09/01/19)   (02/29/20)   the Period (a)   Ratio  
$ 1,000.00     $ 1,025.30     $ 0.70     $ 1,000.00     $ 1,024.20     $ 0.70     0.14 %

 

(a) Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 7 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR  
    Percent of  
Sector   Total Investments (a)
Financials     22.0 %
Information Technology     16.5  
Consumer Discretionary     14.7  
Communication Services     11.0  
Materials     7.4  
Consumer Staples     6.3  
Energy     6.2  
Industrials     5.9  
Health Care     3.8  
Real Estate     3.5  
Utilities     2.7  

TEN LARGEST GEOGRAPHIC ALLOCATION  
    Percent of  
Country/Geographic Region     Total Investments (a)
China     34.1 %
Taiwan     13.0  
South Korea     11.7  
India     9.4  
Brazil     7.0  
South Africa     4.2  
Russia     3.4  
Saudi Arabia     2.6  
Thailand     2.4  
Mexico     2.3  

 

(a) Excludes money market funds.

 

F u n d   S u m m a r y 3

 

 

 

 

Fund Summary as of February 29, 2020 iShares® MSCI BRIC ETF

 

Investment Objective

 

The iShares MSCI BRIC ETF (the “Fund”) seeks to track the investment of an index composed of Chinese equities that are available to international investors, and Brazilian, Russian, and Indian equities, as represented by the MSCI BRIC Index (the "Index"). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

  

Performance

 

          Average Annual Total Returns     Cumulative Total Returns  
    6 Months     1 Year     5 Years     10 Years     1 Year     5 Years     10 Years  
Fund NAV   5.43 %   1.66 %   4.57 %   1.98 %   1.66 %   25.05 %   21.63 %
Fund Market   6.72     2.51     4.70     2.06     2.51     25.81     22.57  
Index   5.61     1.99     5.05     2.67     1.99     27.93     30.17  

 

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 7 for more information.

  

Expense Example 

 

Actual     Hypothetical 5% Return        
Beginning     Ending     Expenses     Beginning     Ending     Expenses     Annualized  
Account Value     Account Value     Paid During     Account Value     Account Value     Paid During     Expense  
(09/01/19)   (02/29/20)   the Period (a)   (09/01/19)   (02/29/20)   the Period (a)   Ratio  
$ 1,000.00     $ 1,054.30     $ 3.58     $ 1,000.00     $ 1,021.40     $ 3.52     0.70

  

(a) Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 7 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR  
    Percent of  
Sector   Total Investments (a)
Financials     23.0 %
Consumer Discretionary     20.6  
Communication Services     15.2  
Energy     9.2  
Information Technology     5.7  
Consumer Staples     5.6  
Materials     5.4  
Industrials     5.0  
Real Estate     3.8  
Health Care     3.8  
Utilities     2.7  

 

GEOGRAPHIC ALLOCATION  
    Percent of  
Country/Geographic Region     Total Investments (a)
China     65.8 %
India     15.7  
Brazil     12.0  
Russia     6.5  


(a) Excludes money market funds.

  

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Fund Summary as of February 29, 2020 iShares® MSCI Emerging Markets Asia ETF

 

Investment Objective

 

The iShares MSCI Emerging Markets Asia ETF (the “Fund”) seeks to track the investment results of an index composed of Asian emerging market equities, as represented by the MSCI EM Asia Custom Capped Index (the "Index") The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

  

Performance

 

          Average Annual Total Returns     Cumulative Total Returns  
                      Since                 Since  
    6 Months     1 Year     5 Years     Inception     1 Year     5 Years     Inception  
Fund NAV   5.38 %   0.26 %   3.52 %   4.19 %   0.26 %   18.86 %   39.17 %
Fund Market   6.26     0.89     3.42     4.23     0.89     18.34     39.66  
Index   5.68     0.68     3.90     4.56     0.68     21.07     43.20  

 

The inception date of the Fund was 2/8/12. The first day of secondary market trading was 2/9/12.

 

Index performance through May 31, 2018 reflects the performance of the MSCI Emerging Markets Asia. Index performance beginning on June 1, 2018 reflects the performance of the MSCI EMAsia Custom Capped Index.

 

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 7 for more information.

 

Expense Example

 

Actual     Hypothetical 5% Return        
Beginning     Ending     Expenses     Beginning     Ending     Expenses     Annualized  
Account Value     Account Value     Paid During     Account Value     Account Value     Paid During     Expense  
(09/01/19)   (02/29/20)   the Period (a)   (09/01/19)   (02/29/20)   the Period (a)   Ratio  
$ 1,000.00     $ 1,053.80     $ 2.55     $ 1,000.00     $ 1,022.40     $ 2.51     0.50 %

 

(a) Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 7 for more information.

  

Portfolio Information

ALLOCATION BY SECTOR  
    Percent of  
Sector   Total Investments (a)
Financials     20.8 %
Information Technology     19.9  
Consumer Discretionary     15.9  
Communication Services     13.2  
Industrials     5.7  
Consumer Staples     5.6  
Materials     5.1  
Energy     4.5  
Health Care     3.6  
Real Estate     3.4  
Utilities     2.3  

GEOGRAPHIC ALLOCATION  
    Percent of  
Country/Geographic Region     Total Investments (a)
China     47.0 %
Taiwan     16.2  
South Korea     14.6  
India     12.5  
Thailand     3.2  
Malaysia     2.6  
Indonesia     2.6  
Philippines     1.3  
Pakistan     0.0 (b)


 

(a) Excludes money market funds.

(b) Rounds to less than 0.1%.

 

F u n d   S u m m a r y 5

 

 

 

 

Fund Summary as of February 29, 2020 iShares® MSCI Emerging Markets Small-Cap ETF

 

Investment Objective

 

The iShares MSCI Emerging Markets Small-Cap ETF (the “Fund”) seeks to track the investment results of an index composed of small-capitalization emerging market equities, as represented by the MSCI Emerging Markets Small Cap Index (the "Index"). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

  

Performance

 

          Average Annual Total Returns     Cumulative Total Returns  
                      Since                 Since  
    6 Months     1 Year     5 Years     Inception     1 Year     5 Years     Inception  
Fund NAV   (0.46 )%   (7.13 )%   (0.34 )%   0.21 %   (7.13 )%   (1.70 )%   1.85 %
Fund Market   0.33     (6.68 )   (0.48 )   0.21     (6.68 )   (2.39 )   1.83  
Index   (0.35 )   (6.79 )   (0.08 )   0.65     (6.79 )   (0.42 )   5.70  

 

The inception date of the Fund was 8/16/11. The first day of secondary market trading was 8/18/11.

 

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 7 for more information.

  

Expense Example

 

Actual     Hypothetical 5% Return        
Beginning     Ending     Expenses     Beginning     Ending     Expenses     Annualized  
Account Value     Account Value     Paid During     Account Value     Account Value     Paid During     Expense  
(09/01/19)   (02/29/20)   the Period (a)   (09/01/19)   (02/29/20)   the Period (a)   Ratio  
$ 1,000.00     $ 995.40     $ 3.47     $ 1,000.00     $ 1,021.40     $ 3.52     0.70 %

 

(a) Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 7 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR  
    Percent of  
Sector   Total Investments (a)
Information Technology     16.8 %
Consumer Discretionary     14.5  
Industrials     13.2  
Materials     11.1  
Financials     10.0  
Health Care     9.2  
Real Estate.     8.1  
Consumer Staples     5.9  
Utilities     4.9  
Communication Services     4.1  
Energy     2.2  

TEN LARGEST GEOGRAPHIC ALLOCATION  
    Percent of  
Country/Geographic Region     Total Investments (a)
Taiwan     21.2 %
South Korea     14.6  
India     14.6  
China     11.5  
Brazil     10.2  
South Africa     4.1  
Thailand     3.5  
Malaysia     3.2  
Mexico     2.8  
Saudi Arabia     2.7  


 

(a) Excludes money market funds.

 

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About Fund Performance 

 

Past performance is no guarantee of future results. Financial markets have experienced extreme volatility and trading in many instruments has been disrupted. These circumstances may continue for an extended period of time, and may continue to affect adversely the value and liquidity of the fund’s investments. As a result, current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at iShares.com. Performance results assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. The investment return and principal value of shares will vary with changes in market conditions. Shares may be worth more or less than their original cost when they are redeemed or sold in the market. Performance for certain funds may reflect a waiver of a portion of investment advisory fees. Without such a waiver, performance would have been lower.

 

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

 

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

 

Shareholder Expenses 

 

As a shareholder of your Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares and (2) ongoing costs, including management fees and other fund expenses. The expense example, which is based on an investment of $1,000 invested at the beginning of the period (or from the commencement of operations if less than 6 months) and held through the end of the period, is intended to help you understand your ongoing costs (in dollars and cents) of investing in your Fund and to compare these costs with the ongoing costs of investing in other funds.

 

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

 

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

 

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

 

A b o u t   F u n d   P e r f o r m a n c e / S h a r e h o l d e r   E x p e n s e s 7

 

 

 

 

Consolidated Schedule of Investments (unaudited) iShares® Core MSCI Emerging Markets ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
                 
Common Stocks                
                 
Argentina — 0.2%                
Adecoagro SA(a)(b)     1,138,665     $ 7,446,869  
Arcos Dorados Holdings Inc., Class A     1,096,524       7,061,615  
Banco BBVA Argentina SA, ADR(a)(b)     671,182       2,704,864  
Banco Macro SA, ADR     399,403       11,574,699  
Central Puerto SA, ADR     917,692       2,973,322  
Despegar.com Corp.(a)(b)     516,703       6,195,269  
Globant SA(a)(b)     319,839       36,145,005  
Grupo Financiero Galicia SA, ADR     891,053       11,262,910  
Loma Negra Cia Industrial Argentina SA, ADR(a)(b)     498,513       2,891,375  
Pampa Energia SA, ADR(a)(b)     501,584       5,943,770  
Telecom Argentina SA, ADR     806,318       9,353,289  
Transportadora de Gas del Sur SA, Class B     765,242       4,293,008  
YPF SA, ADR     1,544,004       12,336,592  
              120,182,587  
Brazil — 4.9%                
AES Tiete Energia SA     1,998,644       6,737,973  
Aliansce Sonae Shopping Centers SA(a)     1,030,801       10,434,471  
Alupar Investimento SA     1,614,824       10,093,433  
Ambev SA     40,861,699       131,687,765  
Anima Holding SA     537,000       4,284,907  
Arezzo Industria e Comercio SA     469,912       6,259,730  
Atacadao SA     3,267,000       14,982,153  
B2W Cia. Digital(a)     1,860,303       25,626,507  
B3 SA - Brasil, Bolsa, Balcao     18,628,228       198,188,012  
Banco Bradesco SA     10,612,808       64,194,592  
Banco BTG Pactual SA     2,031,000       30,413,343  
Banco do Brasil SA     7,488,313       77,776,944  
Banco Inter SA     621,300       6,389,751  
Banco Santander Brasil SA     3,449,563       30,476,562  
BB Seguridade Participacoes SA     6,092,143       43,007,493  
BK Brasil Operacao e Assessoria a Restaurantes SA     1,683,900       5,467,874  
BR Malls Participacoes SA     6,733,724       24,387,763  
BR Properties SA(a)     2,017,391       6,161,748  
BRF SA(a)     4,978,058       29,835,357  
Camil Alimentos SA     1,523,582       2,856,938  
CCR SA     10,717,887       38,793,589  
Centrais Eletricas Brasileiras SA     2,383,600       18,242,928  
Cia. de Locacao das Americas     2,682,036       12,578,964  
Cia. de Saneamento Basico do Estado de Sao Paulo     2,976,828       38,763,788  
Cia. de Saneamento de Minas Gerais-COPASA     597,400       7,985,813  
Cia. de Saneamento do Parana     531,802       11,846,243  
Cia. Hering     1,266,600       6,327,877  
Cia. Siderurgica Nacional SA     5,542,356       13,734,119  
Cielo SA     10,657,718       16,181,523  
Cogna Educacao     15,396,515       34,433,264  
Cosan Logistica SA(a)     1,637,123       6,582,384  
Cosan SA     1,339,272       21,720,331  
CVC Brasil Operadora e Agencia de Viagens SA     1,172,840       6,688,722  
Cyrela Brazil Realty SA Empreendimentos e Participacoes     2,403,300       15,890,071  
Dommo Energia SA(a)     1,647,870       474,822  
Duratex SA     2,815,608       10,852,664  
EcoRodovias Infraestrutura e Logistica SA(a)     2,227,000       7,789,181  
EDP - Energias do Brasil SA     2,583,500       11,698,803  
Embraer SA(a)     6,246,483       23,481,509  
Enauta Participacoes SA     1,118,800       3,295,657  

Security   Shares     Value  
                 
Brazil (continued)                
Energisa SA     1,361,975     $ 16,301,497  
Eneva SA(a)     1,155,600       10,949,852  
Engie Brasil Energia SA     1,714,975       18,067,173  
Equatorial Energia SA     7,793,480       42,597,989  
Ez Tec Empreendimentos e Participacoes SA     902,706       9,303,875  
Fleury SA     1,837,814       12,122,692  
Grendene SA     2,724,200       5,857,001  
Guararapes Confeccoes SA     1,020,738       6,221,736  
Hapvida Participacoes e Investimentos SA(c)     1,884,754       23,059,949  
Hypera SA     3,280,100       24,937,092  
Iguatemi Empresa de Shopping Centers SA     754,600       8,334,361  
Instituto Hermes Pardini SA     562,444       3,584,113  
Iochpe Maxion SA     1,147,228       4,943,228  
IRB Brasil Resseguros S/A     6,158,639       45,387,995  
JBS SA     9,751,861       49,065,695  
Klabin SA     6,105,024       26,048,499  
Light SA     1,995,852       9,595,166  
Linx SA     1,376,200       9,571,921  
Localiza Rent a Car SA     5,545,303       60,889,989  
LOG Commercial Properties e Participacoes SA     714,372       4,367,001  
Lojas Renner SA     7,227,436       85,383,915  
M. Dias Branco SA     955,697       8,684,977  
Magazine Luiza SA     6,510,068       72,897,640  
Mahle-Metal Leve SA     446,271       2,665,766  
Marfrig Global Foods SA(a)     4,059,113       10,859,330  
Movida Participacoes SA     1,659,600       6,621,258  
MRV Engenharia e Participacoes SA     2,617,942       11,309,319  
Multiplan Empreendimentos Imobiliarios SA     2,323,229       15,715,968  
Natura & Co. Holding SA     5,456,570       55,041,615  
Notre Dame Intermedica Participacoes SA     4,136,979       57,979,050  
Odontoprev SA     2,396,400       8,758,799  
Omega Geracao SA(a)     704,500       6,050,863  
Petrobras Distribuidora SA     6,210,312       35,926,799  
Petroleo Brasileiro SA     32,378,379       194,845,121  
Porto Seguro SA     842,198       11,383,249  
Qualicorp Consultoria e Corretora de Seguros SA     2,032,400       15,428,879  
Raia Drogasil SA     2,042,357       54,276,951  
Rumo SA(a)     10,037,581       46,988,067  
Santos Brasil Participacoes SA     3,384,800       4,448,897  
Sao Martinho SA     1,554,511       9,127,259  
Ser Educacional SA(c)     630,000       3,602,673  
SLC Agricola SA     1,043,378       4,664,576  
Smiles Fidelidade SA     669,700       4,865,795  
Sul America SA     2,573,732       30,839,261  
Suzano SA     4,779,954       40,408,153  
TIM Participacoes SA     7,438,500       26,594,041  
TOTVS SA     1,334,700       21,007,181  
Transmissora Alianca de Energia Eletrica SA     1,757,300       11,681,187  
Tupy SA     699,000       3,391,467  
Ultrapar Participacoes SA     6,284,060       26,575,613  
Vale SA     27,796,483       272,995,946  
Via Varejo SA(a)     8,556,815       26,192,106  
Vulcabras Azaleia SA(a)     1,156,400       2,024,882  
WEG SA     7,706,059       73,701,738  
Wiz Solucoes e Corretagem de Seguros SA     924,800       2,890,224  
YDUQS Part     2,356,624       27,104,323  
              2,720,765,280  
Chile — 0.6%                
AES Gener SA     28,510,103       4,185,824  
Aguas Andinas SA, Class A     23,699,526       8,089,555  


 

8 2 0 2 0   i  S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

 

Consolidated Schedule of Investments (unaudited) (continued) iShares® Core MSCI Emerging Markets ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
                 
Chile (continued)                
Banco de Chile     383,156,419     $ 33,652,823  
Banco de Credito e Inversiones SA     423,697       15,753,122  
Banco Santander Chile     548,133,237       24,382,117  
Besalco SA     2,554,650       1,024,034  
CAP SA     682,743       3,853,449  
Cencosud SA     12,685,808       14,845,703  
Cia. Cervecerias Unidas SA     1,301,959       9,751,242  
Cia. Sud Americana de Vapores SA(a)     123,898,151       3,623,318  
Colbun SA     71,717,050       8,978,510  
Empresa Nacional de Telecomunicaciones SA(a)     1,387,966       7,283,213  
Empresas CMPC SA     10,244,914       20,606,473  
Empresas COPEC SA     3,405,288       26,355,459  
Enel Americas SA     332,150,772       55,471,159  
Enel Chile SA     243,791,601       21,694,668  
Engie Energia Chile SA     5,259,050       6,762,213  
Forus SA     559,926       672,255  
Grupo Security SA     9,032,962       1,777,346  
Inversiones Aguas Metropolitanas SA     4,702,195       4,070,348  
Inversiones La Construccion SA     336,106       2,508,268  
Itau CorpBanca     1,389,277,109       5,082,370  
Latam Airlines Group SA     2,040,332       13,570,211  
Parque Arauco SA     5,141,662       10,529,899  
Ripley Corp. SA     6,551,889       2,555,806  
SACI Falabella     6,395,975       21,207,382  
Salfacorp SA     4,101,337       1,919,403  
SMU SA     18,149,387       2,705,604  
SONDA SA     4,636,746       3,271,943  
Vina Concha y Toro SA     3,793,772       6,264,143  
              342,447,860  
China — 34.0%                
21Vianet Group Inc., ADR(a)(b)     525,948       7,878,701  
360 Security Technology Inc., Class A     755,988       2,417,146  
361 Degrees International Ltd.(b)     10,234,000       1,838,510  
3SBio Inc.(a)(c)     11,372,000       11,790,731  
500.com Ltd., ADR(a)(b)     179,117       965,441  
51job Inc., ADR(a)(b)     229,321       17,146,331  
58.com Inc., ADR(a)(b)     817,285       45,089,613  
AAC Technologies Holdings Inc.(b)     6,353,500       41,619,927  
AECC Aviation Power Co. Ltd., Class A     1,278,916       4,226,340  
Agile Group Holdings Ltd.     11,324,500       15,897,502  
Agricultural Bank of China Ltd., Class A     42,793,147       20,875,602  
Agricultural Bank of China Ltd., Class H     245,448,000       98,266,758  
AGTech Holdings Ltd.(a)(b)     39,524,000       1,369,359  
Aier Eye Hospital Group Co. Ltd., Class A     2,168,756       12,410,266  
Air China Ltd., Class H     16,286,000       13,103,114  
Aisino Corp., Class A     1,118,781       3,777,178  
Ajisen China Holdings Ltd.     6,487,000       1,639,844  
AK Medical Holdings Ltd.(b)(c)     4,650,000       9,618,570  
Alibaba Group Holding Ltd., ADR(a)     15,182,400       3,157,939,200  
Alibaba Health Information Technology Ltd.(a)(b)     32,468,000       62,244,169  
Alibaba Pictures Group Ltd.(a)(b)     132,520,000       17,855,140  
A-Living Services Co. Ltd., Class H(c)     3,730,500       16,706,482  
Aluminum Corp. of China Ltd., Class H(a)     35,432,000       9,411,494  
Anhui Conch Cement Co. Ltd., Class A     2,609,007       20,475,827  
Anhui Conch Cement Co. Ltd., Class H     10,634,000       77,983,986  
Anhui Gujing Distillery Co. Ltd., Class A     218,280       3,819,010  
Anhui Kouzi Distillery Co. Ltd., Class A     345,324       2,211,690  
ANTA Sports Products Ltd.     10,026,000       80,601,164  
Anton Oilfield Services Group/Hong Kong(b)     26,360,000       2,503,051  
Ascletis Pharma Inc.(a)(b)(c)     4,644,000       2,324,071  

Security   Shares     Value  
                 
China (continued)                
Asia Cement China Holdings Corp.     5,803,500     $ 7,655,537  
Asymchem Laboratories Tianjin Co. Ltd., Class A     123,100       3,153,665  
Atlas Crop.     769,795       8,159,827  
Autobio Diagnostics Co. Ltd., Class A     156,890       2,694,436  
Autohome Inc., ADR(a)(b)     513,086       39,851,390  
AVIC Aircraft Co. Ltd., Class A     1,927,187       4,689,630  
Avic Capital Co. Ltd., Class A     5,685,391       3,464,817  
AVIC Jonhon Optronic Technology Co. Ltd., Class A     626,393       3,520,784  
AVIC Shenyang Aircraft Co. Ltd., Class A(a)     714,367       2,841,035  
AviChina Industry & Technology Co. Ltd., Class H     23,236,000       10,107,729  
BAIC Motor Corp. Ltd., Class H(c)     14,778,500       7,244,130  
Baidu Inc., ADR(a)(b)     2,390,197       286,775,836  
Bank of Beijing Co. Ltd., Class A     14,519,534       10,614,120  
Bank of Chengdu Co. Ltd., Class A     2,627,575       3,071,055  
Bank of China Ltd., Class A     22,925,400       11,642,753  
Bank of China Ltd., Class H     677,489,000       267,759,878  
Bank of Communications Co. Ltd., Class A     24,020,380       17,868,727  
Bank of Communications Co. Ltd., Class H     71,371,000       45,791,442  
Bank of Guiyang Co. Ltd., Class A     2,455,460       2,950,683  
Bank of Hangzhou Co. Ltd., Class A     2,864,440       3,520,005  
Bank of Jiangsu Co. Ltd., Class A     9,790,614       8,935,956  
Bank of Nanjing Co. Ltd., Class A     7,064,321       7,842,284  
Bank of Ningbo Co. Ltd., Class A     4,018,376       14,463,440  
Bank of Shanghai Co. Ltd., Class A     8,812,295       10,854,319  
Baoshan Iron & Steel Co. Ltd., Class A     13,504,529       10,046,000  
Baozun Inc., ADR(a)(b)     367,288       11,650,375  
BBMG Corp., Class A     6,558,400       3,161,828  
BBMG Corp., Class H     23,381,000       6,570,520  
Beijing Capital International Airport Co. Ltd., Class H.     14,904,000       11,627,838  
Beijing Capital Land Ltd., Class H(b)     12,078,000       3,254,669  
Beijing Enlight Media Co. Ltd., Class A     1,703,394       2,641,525  
Beijing Enterprises Holdings Ltd.     4,312,000       18,204,015  
Beijing Enterprises Water Group Ltd.(b)     44,056,000       20,464,737  
Beijing Gas Blue Sky Holdings Ltd.(a)(b)     89,864,000       2,190,947  
Beijing New Building Materials PLC, Class A     996,322       3,591,788  
Beijing Oriental Yuhong Waterproof Technology Co. Ltd., Class A     817,097       3,630,659  
Beijing Shiji Information Technology Co. Ltd.,                
Class A     486,995       2,703,825  
Beijing Shunxin Agriculture Co. Ltd., Class A     425,100       3,344,754  
Beijing Sinnet Technology Co. Ltd., Class A     852,287       3,060,342  
Beijing Tiantan Biological Products Corp. Ltd., Class A     601,798       2,981,355  
Beijing Tong Ren Tang Chinese Medicine Co. Ltd.(b)     3,366,000       5,658,195  
Beijing Tongrentang Co. Ltd., Class A     813,296       3,041,338  
BEST Inc., ADR(a)(b)     1,654,184       8,949,135  
Betta Pharmaceuticals Co. Ltd., Class A     225,894       2,607,886  
Bitauto Holdings Ltd., ADR(a)(b)     241,008       3,591,019  
BOC Aviation Ltd.(c)     2,198,700       19,086,501  
BOE Technology Group Co. Ltd., Class A     20,983,800       14,709,253  
Bosideng International Holdings Ltd.     32,514,000       9,470,846  
Brilliance China Automotive Holdings Ltd.(b)     27,012,000       22,876,691  
BYD Co. Ltd., Class A     1,419,886       13,278,296  
BYD Co. Ltd., Class H(b)     5,095,000       31,185,672  
BYD Electronic International Co. Ltd.     6,105,500       11,438,436  
C&D International Investment Group Ltd.     3,281,000       4,555,395  
CA Cultural Technology Group Ltd.     8,833,000       2,391,571  
Caitong Securities Co. Ltd., Class A     2,246,186       3,566,803  
Camsing International Holding Ltd.(a)(b)(d)     4,108,000       519,756  


 

C o n s o l i d a t e d   S c h e d u l e   o f   I n v e s t m e n t s 9

 

 

 

 

 

Consolidated Schedule of Investments (unaudited) (continued) iShares® Core MSCI Emerging Markets ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
                 
China (continued)                
Canvest Environmental Protection Group Co. Ltd.     7,897,000     $ 3,810,154  
CAR Inc.(a)(b)     7,248,000       4,547,991  
CGN Power Co. Ltd., Class H(c)     87,646,000       21,368,707  
Changchun High & New Technology Industry Group Inc., Class A     130,493       9,035,308  
Changjiang Securities Co. Ltd., Class A     3,455,296       3,331,621  
Changyou.com Ltd., ADR     159,714       1,718,523  
Chaowei Power Holdings Ltd.     6,957,000       2,196,088  
Chaozhou Three-Circle Group Co. Ltd., Class A     993,046       3,381,090  
China Agri-Industries Holdings Ltd.     23,656,200       12,840,380  
China Aircraft Leasing Group Holdings Ltd.     4,584,500       4,429,753  
China Animal Healthcare Ltd.(a)(d)     1,237,000       6,349  
China Aoyuan Group Ltd.     12,188,000       17,547,605  
China BlueChemical Ltd., Class H     19,042,000       3,616,320  
China Cinda Asset Management Co. Ltd., Class H     74,005,000       15,478,940  
China CITIC Bank Corp. Ltd., Class H     76,700,000       39,860,517  
China Coal Energy Co. Ltd., Class H     18,876,000       6,103,839  
China Communications Construction Co. Ltd., Class H     38,599,000       28,776,947  
China Communications Services Corp. Ltd., Class H     21,742,000       16,823,228  
China Conch Venture Holdings Ltd.     14,413,000       70,094,854  
China Construction Bank Corp., Class A     8,998,781       8,367,726  
China Construction Bank Corp., Class H     836,043,000       675,867,715  
China Datang Corp. Renewable Power Co. Ltd., Class H     29,743,000       2,404,462  
China Dongxiang Group Co. Ltd.     41,723,000       4,176,021  
China East Education Holdings Ltd.(a)(c)     529,000       1,076,593  
China Eastern Airlines Corp. Ltd., Class H(a)(b)     16,430,000       7,041,685  
China Education Group Holdings Ltd.     5,844,000       8,308,880  
China Everbright Bank Co. Ltd., Class A     24,175,482       13,073,063  
China Everbright Bank Co. Ltd., Class H     20,000,000       8,007,135  
China Everbright Greentech Ltd.(c)     8,019,000       3,879,307  
China Everbright International Ltd.(b)     32,348,148       21,543,156  
China Everbright Ltd.(b)     8,352,000       13,932,414  
China Everbright Water Ltd.(b)     9,643,400       2,141,903  
China Evergrande Group(b)     17,329,000       38,913,840  
China Fiber Optic Network System Group Ltd.(a)(d)     10,394,800       13  
China First Capital Group Ltd.(a)     31,268,000       862,643  
China Foods Ltd.     9,708,000       3,587,689  
China Fortune Land Development Co. Ltd., Class A     2,130,673       7,190,435  
China Galaxy Securities Co. Ltd., Class H     31,426,500       17,340,316  
China Gas Holdings Ltd.     16,003,400       58,526,110  
China Gezhouba Group Co. Ltd., Class A     2,676,193       2,545,948  
China Grand Automotive Services Group Co. Ltd., Class A     4,874,200       2,872,837  
China Grand Pharmaceutical and Healthcare Holdings Ltd., Class A(b)     8,600,000       5,451,524  
China Greatwall Technology Group Co. Ltd., Class A     1,603,700       3,209,602  
China Harmony New Energy Auto Holding Ltd.     7,532,500       3,721,281  
China High Speed Transmission Equipment Group  Co. Ltd.(b)     4,957,000       3,148,594  
China Hongqiao Group Ltd.     15,817,000       8,483,849  
China Huarong Asset Management Co. Ltd., Class H(c)     85,229,000       11,592,732  
China Huishan Dairy Holdings Co. Ltd.(a)(d)     16,599,187       31,950  
China Huiyuan Juice Group Ltd.(a)(d)     10,877,000       1,507,389  
China International Capital Corp. Ltd., Class H(b)(c)     11,574,800       21,358,213  
Security   Shares     Value  
             
China (continued)                
China International Travel Service Corp. Ltd.,                
Class A     1,164,873     $ 13,081,533  
China Jinmao Holdings Group Ltd.     46,772,000       34,150,003  
China Jushi Co. Ltd., Class A     2,158,893       2,896,972  
China Lesso Group Holdings Ltd.     8,033,000       12,060,246  
China Life Insurance Co. Ltd., Class A     1,622,721       6,836,590  
China Life Insurance Co. Ltd., Class H     64,854,000       151,960,277  
China Lilang Ltd.     4,795,000       3,107,224  
China Literature Ltd.(a)(b)(c)     2,365,600       10,700,226  
China LNG Group Ltd.(a)(b)     27,112,000       1,356,809  
China Logistics Property Holdings Co. Ltd.(a)(b)(c)     10,439,000       4,018,581  
China Longyuan Power Group Corp. Ltd., Class H     27,419,000       14,355,037  
China Lumena New Materials Corp.(a)(b)(d)     64,600       0 (e)
China Maple Leaf Educational Systems Ltd.     14,764,000       5,153,063  
China Medical System Holdings Ltd.     12,156,000       14,974,573  
China Mengniu Dairy Co. Ltd.(b)     25,644,000       91,972,950  
China Merchants Bank Co. Ltd., Class A     10,945,563       53,551,866  
China Merchants Bank Co. Ltd., Class H     34,653,464       163,416,737  
China Merchants Energy Shipping Co. Ltd., Class A     3,855,488       2,790,874  
China Merchants Land Ltd..     25,898,000       3,854,932  
China Merchants Port Holdings Co. Ltd.     11,744,270       17,270,431  
China Merchants Securities Co. Ltd., Class A     5,402,647       13,641,487  
China Merchants Shekou Industrial Zone Holdings  Co. Ltd., Class A     4,827,834       11,976,001  
China Metal Recycling Holdings Ltd.(a)(d)     62,400       0 (e)
China Metal Resources Utilization Ltd.(a)(b)(c)     5,276,000       2,017,500  
China Minsheng Banking Corp. Ltd., Class A     22,732,015       18,601,346  
China Minsheng Banking Corp. Ltd., Class H     56,609,720       38,209,318  
China Mobile Ltd.     53,745,000       422,757,264  
China Molybdenum Co. Ltd., Class A     20,907,371       12,173,185  
China Molybdenum Co. Ltd., Class H(b)     25,863,000       9,657,494  
China National Building Material Co. Ltd., Class H.     34,172,850       39,509,227  
China National Chemical Engineering Co. Ltd., Class A     2,725,997       2,710,320  
China National Nuclear Power Co. Ltd., Class A     14,347,626       9,421,133  
China National Software & Service Co. Ltd., Class A     270,099       3,293,259  
China New Higher Education Group Ltd.(b)(c)     6,633,000       2,255,529  
China Northern Rare Earth Group High-Tech Co. Ltd., Class A     2,152,800       2,802,564  
China Oilfield Services Ltd., Class H     14,502,000       18,608,889  
China Oriental Group Co. Ltd.     12,484,000       4,261,161  
China Overseas Grand Oceans Group Ltd.     14,330,500       9,801,241  
China Overseas Land & Investment Ltd.     31,636,000       106,156,306  
China Overseas Property Holdings Ltd.(b)     13,510,000       10,921,655  
China Pacific Insurance Group Co. Ltd., Class A     3,530,938       16,108,497  
China Pacific Insurance Group Co. Ltd., Class H(b)     22,935,400       75,489,444  
China Petroleum & Chemical Corp., Class A     16,698,410       10,988,625  
China Petroleum & Chemical Corp., Class H     218,148,200       112,530,494  
China Power International Development Ltd.     37,161,000       6,914,295  
China Railway Construction Corp. Ltd., Class A     7,644,812       10,389,648  
China Railway Construction Corp. Ltd., Class H     16,133,000       18,465,987  
China Railway Group Ltd., Class A     16,247,966       12,481,986  
China Railway Group Ltd., Class H     30,505,000       17,223,295  
China Railway Signal & Communication Corp. Ltd., Class H(c)     13,512,000       6,935,410  
China Reinsurance Group Corp., Class H.     44,948,000       6,113,765  
China Renewable Energy Investment Ltd.(a)(d)     8,046       0 (e)
China Resources Beer Holdings Co. Ltd.     13,148,000       60,905,910  
China Resources Cement Holdings Ltd.     21,686,000       27,298,639  


 

10 2 0 2 0   i  S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

 

 

 

Consolidated Schedule of Investments (unaudited) (continued) iShares® Core MSCI Emerging Markets ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
China (continued)                
China Resources Gas Group Ltd.     8,002,000     $ 39,943,000  
China Resources Land Ltd.     26,935,777       124,257,022  
China Resources Medical Holdings Co. Ltd.     9,987,500       5,177,626  
China Resources Pharmaceutical Group Ltd.(c)     13,391,500       11,650,685  
China Resources Power Holdings Co. Ltd.     16,680,000       19,841,217  
China Resources Sanjiu Medical & Pharmaceutical Co. Ltd., Class A     527,296       2,474,222  
China SCE Group Holdings Ltd.     17,246,200       9,405,348  
China Shenhua Energy Co. Ltd., Class A     3,184,456       7,288,961  
China Shenhua Energy Co. Ltd., Class H     28,825,000       50,007,892  
China Shineway Pharmaceutical Group Ltd.     3,165,000       2,761,692  
China Shipbuilding Industry Co. Ltd., Class A     13,851,918       8,738,943  
China South City Holdings Ltd.     42,608,000       4,701,995  
China Southern Airlines Co. Ltd., Class A     7,188,867       5,923,704  
China Southern Airlines Co. Ltd., Class H(b)     13,386,000       7,059,683  
China State Construction Engineering Corp. Ltd., Class A     23,665,819       18,180,517  
China State Construction International Holdings Ltd.     17,820,000       14,428,779  
China Suntien Green Energy Corp. Ltd., Class H     17,896,000       4,363,170  
China Taiping Insurance Holdings Co. Ltd.     14,514,508       29,650,903  
China Telecom Corp. Ltd., Class H     119,446,000       44,908,833  
China Tian Lun Gas Holdings Ltd.     3,042,500       2,490,828  
China Tower Corp. Ltd., Class H(c)     387,134,000       93,889,204  
China Traditional Chinese Medicine Holdings Co. Ltd.     20,186,000       10,620,052  
China Travel International Investment Hong Kong Ltd.     25,568,000       4,035,473  
China Unicom Hong Kong Ltd.     53,630,000       42,322,903  
China United Network Communications Ltd., Class A     18,643,082       14,615,331  
China Vanke Co. Ltd., Class A     5,821,368       24,642,253  
China Vanke Co. Ltd., Class H     12,710,487       48,930,086  
China Vast Industrial Urban Development  Co. Ltd.(b)(c)     2,532,000       994,209  
China Water Affairs Group Ltd.(b)     8,378,000       6,676,126  
China Yangtze Power Co. Ltd., Class A     11,856,662       28,886,005  
China Youzan Ltd.(a)(b)     110,852,000       11,237,331  
China Yuchai International Ltd.     107,862       1,339,646  
China Yuhua Education Corp Ltd.(b)(c)     12,106,000       9,367,216  
China ZhengTong Auto Services Holdings Ltd.(b)     10,908,500       3,023,509  
China Zhongwang Holdings Ltd.     17,190,400       5,779,361  
Chinasoft International Ltd.(b)     17,704,000       10,859,050  
Chongqing Changan Automobile Co. Ltd., Class A     2,254,483       3,280,034  
Chongqing Rural Commercial Bank Co. Ltd., Class H     19,977,000       9,023,302  
Chongqing Zhifei Biological Products Co. Ltd., Class A     978,363       8,394,926  
CIFI Holdings Group Co. Ltd.     24,626,000       18,801,971  
CIMC Enric Holdings Ltd.     7,390,000       3,831,055  
CITIC Ltd.     50,844,000       56,434,977  
CITIC Resources Holdings Ltd.     39,550,000       2,156,890  
CITIC Securities Co. Ltd., Class A     6,358,345       21,284,838  
CITIC Securities Co. Ltd., Class H     17,247,500       36,871,745  
CNOOC Ltd.     156,392,000       214,327,710  
COFCO Meat Holdings Ltd.(a)(b)     13,867,000       3,469,842  
Colour Life Services Group Co. Ltd.(b)     4,096,000       2,165,458  
Concord New Energy Group Ltd.     100,170,000       4,370,279  
Consun Pharmaceutical Group Ltd.(b)     5,049,000       2,468,442  
Contemporary Amperex Technology Co. Ltd.,                
Class A     1,242,673       24,118,544  
Security     Shares       Value  
China (continued)                
COSCO SHIPPING Energy Transportation Co. Ltd., Class H     12,294,000     $ 4,795,781  
COSCO SHIPPING Holdings Co. Ltd., Class H(a)(b)     24,607,000       8,209,648  
COSCO SHIPPING International Hong Kong  Co. Ltd.(b)     12,346,000       3,643,734  
COSCO SHIPPING Ports Ltd.     15,538,000       10,347,966  
Country Garden Holdings Co. Ltd.     66,496,733       88,058,755  
Country Garden Services Holdings Co. Ltd.     11,652,000       45,453,423  
CPMC Holdings Ltd.     7,517,000       2,874,441  
CRRC Corp. Ltd., Class A     15,586,669       14,270,648  
CRRC Corp. Ltd., Class H     36,189,750       23,219,247  
CSC Financial Co. Ltd., Class A     2,342,092       10,792,078  
CSPC Pharmaceutical Group Ltd.     40,984,000       93,400,638  
CT Environmental Group Ltd.(a)(d)     33,362,000       1,113,058  
Dali Foods Group Co. Ltd.(c)     17,565,500       11,608,077  
Daqin Railway Co. Ltd., Class A     9,313,539       9,433,186  
Daqo New Energy Corp., ADR(a)(b)     93,515       6,131,779  
Datang International Power Generation Co. Ltd., Class H     28,406,000       4,446,952  
Dawning Information Industry Co. Ltd., Class A     505,387       3,266,485  
Dawnrays Pharmaceutical Holdings Ltd.     14,024,000       2,375,409  
DHC Software Co. Ltd., Class A     1,698,698       3,584,418  
Digital China Holdings Ltd.     7,963,000       3,995,269  
Dongfeng Motor Group Co. Ltd., Class H     24,118,000       19,064,022  
Dongxing Securities Co. Ltd., Class A     1,805,277       3,122,343  
Dongyue Group Ltd.(b)     12,139,000       6,308,563  
East Money Information Co. Ltd., Class A     4,305,276       10,685,894  
ENN Energy Holdings Ltd.     7,099,300       78,662,982  
Eve Energy Co. Ltd., Class A(a)     528,285       5,029,522  
Everbright Securities Co. Ltd., Class A     2,343,086       3,982,127  
Fangda Carbon New Material Co. Ltd., Class A(a)     1,696,472       2,443,918  
Fanhua Inc., ADR     438,695       8,905,508  
Fantasia Holdings Group Co. Ltd.     20,545,500       3,928,217  
Far East Horizon Ltd.     18,944,000       16,554,320  
Fiberhome Telecommunication Technologies Co. Ltd., Class A     674,498       2,892,829  
FingerTango Inc.(a)     1,200,000       97,010  
Focus Media Information Technology Co. Ltd., Class A     9,154,599       6,993,442  
Foshan Haitian Flavouring & Food Co. Ltd., Class A     1,227,817       17,491,061  
Fosun International Ltd.     23,222,500       29,590,395  
Founder Securities Co. Ltd., Class A     6,399,087       6,700,998  
Foxconn Industrial Internet Co. Ltd., Class A     2,717,261       6,639,412  
Fu Shou Yuan International Group Ltd.     9,759,000       8,340,116  
Fufeng Group Ltd.     15,808,400       6,126,147  
Fuyao Glass Industry Group Co. Ltd., Class H(c)     4,628,400       13,214,582  
Ganfeng Lithium Co. Ltd., Class A     593,084       4,410,247  
GCL New Energy Holdings Ltd.(a)     92,090,000       1,654,372  
GCL System Integration Technology Co. Ltd., Class A(a)     2,792,300       2,205,015  
GCL-Poly Energy Holdings Ltd.(a)     124,664,000       5,918,823  
GD Power Development Co. Ltd., Class A     9,730,400       2,923,213  
GDS Holdings Ltd., ADR(a)(b)     600,415       34,806,058  
Geely Automobile Holdings Ltd.     43,990,000       78,236,557  
Gemdale Corp., Class A     3,811,643       7,797,559  
Gemdale Properties & Investment Corp. Ltd.     44,204,000       7,827,682  
Genertec Universal Medical Group Co. Ltd.(b)(c)     9,433,000       6,560,571  
Genscript Biotech Corp.(a)     8,298,000       17,270,973  
GF Securities Co. Ltd., Class A     5,442,985       11,290,561  
GF Securities Co. Ltd., Class H     10,982,400       13,134,263  
                 

 


 

C o n s o l i d a t e d   S c h e d u l e   o f   I n v e s t m e n t s 11

 

 

 

 

 

Consolidated Schedule of Investments (unaudited) (continued) iShares® Core MSCI Emerging Markets ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
China (continued)                
Gigadevice Semiconductor Beijing Inc., Class A     287,382     $ 14,925,347  
Glodon Co. Ltd., Class A     615,993       3,939,951  
Glorious Property Holdings Ltd.(a)     2,016,000       42,684  
Glory Sun Financial Group Ltd.(b)     127,692,000       4,096,342  
GoerTek Inc., Class A     2,702,600       8,610,183  
GOME Retail Holdings Ltd.(a)(b)     89,617,000       9,199,684  
Goodbaby International Holdings Ltd. (a)(b)     9,750,000       1,663,983  
Grand Baoxin Auto Group Ltd.(a)(b)     6,971,500       1,127,170  
Great Wall Motor Co. Ltd., Class H     27,545,500       19,935,278  
Gree Electric Appliances Inc. of Zhuhai, Class A     1,832,341       15,518,095  
Greenland Holdings Corp. Ltd., Class A     8,208,832       6,858,113  
Greenland Hong Kong Holdings Ltd.     8,445,000       3,283,483  
Greentown Service Group Co. Ltd.     10,362,000       12,950,755  
Guangdong Haid Group Co. Ltd., Class A     859,999       4,207,600  
Guangdong HEC Technology Holding Co. Ltd., Class A     2,181,695       2,602,978  
Guangdong Investment Ltd.     26,526,000       49,831,663  
Guangzhou Automobile Group Co. Ltd., Class H     26,779,200       29,861,383  
Guangzhou Baiyun International Airport Co. Ltd., Class A     1,161,823       2,572,891  
Guangzhou Baiyunshan Pharmaceutical Holdings  Co. Ltd., Class A     1,330,388       6,484,266  
Guangzhou R&F Properties Co. Ltd., Class H(b)     9,387,600       14,551,711  
Guorui Properties Ltd.     11,218,000       1,986,493  
Guosen Securities Co. Ltd., Class A     2,451,267       4,127,409  
Guotai Junan Securities Co. Ltd., Class A     5,454,625       13,265,518  
Guotai Junan Securities Co. Ltd., Class H(c)     5,256,000       8,781,301  
Guoyuan Securities Co. Ltd., Class A     2,169,600       2,799,604  
Haidilao International Holding Ltd.(b)(c)     3,261,000       13,327,625  
Haier Electronics Group Co. Ltd.     11,142,000       31,883,101  
Haier Smart Home Co. Ltd., Class A     3,417,605       8,321,312  
Haitian International Holdings Ltd.     6,070,000       11,901,579  
Haitong Securities Co. Ltd., Class A     6,530,056       13,274,598  
Haitong Securities Co. Ltd., Class H     24,179,600       25,969,710  
Hangzhou Hikvision Digital Technology Co. Ltd., Class A     5,010,165       25,085,945  
Hangzhou Robam Appliances Co. Ltd., Class A     567,101       2,516,591  
Hangzhou Steam Turbine Co. Ltd., Class B     3,634,577       3,885,003  
Hangzhou Tigermed Consulting Co. Ltd., Class A     688,274       7,532,397  
Hansoh Pharmaceutical Group Co. Ltd.(a)(c)     4,370,000       15,168,451  
Harbin Electric Co. Ltd., Class H(a)(b)     6,036,000       1,626,526  
HC Group Inc.(a)(b)     5,989,000       1,621,546  
Hefei Meiya Optoelectronic Technology Inc., Class A     506,842       2,615,346  
Henan Shuanghui Investment & Development Co. Ltd., Class A     2,035,210       9,899,165  
Hengan International Group Co. Ltd.     6,252,000       46,410,353  
Hengli Petrochemical Co. Ltd., Class A     3,810,210       8,121,674  
HengTen Networks Group Ltd.(a)(b)     236,624,000       3,005,983  
Hengtong Optic-Electric Co. Ltd., Class A     1,357,400       3,198,246  
Hengyi Petrochemical Co. Ltd., Class A     1,683,432       3,325,827  
Hi Sun Technology China Ltd.(a)     31,827,000       4,451,586  
Hithink RoyalFlush Information Network Co. Ltd., Class A     492,373       8,698,341  
Hope Education Group Co. Ltd.(c)     22,610,000       4,990,241  
Hua Han Health Industry Holdings Ltd.(a)(b)(d)     22,424,288       690,593  
Hua Hong Semiconductor Ltd.(b)(c)     4,010,000       8,726,955  
Huabao International Holdings Ltd.     9,946,000       3,930,897  
Huadian Power International Corp. Ltd., Class H     17,140,000       5,168,580  
Huadong Medicine Co. Ltd., Class A     1,006,451       2,778,820  
Security   Shares     Value  
China (continued)                
Hualan Biological Engineering Inc., Class A     752,400     $ 4,466,911  
Huaneng Power International Inc., Class H     34,362,000       13,845,244  
Huangshi Dongbei Electrical Appliance Co. Ltd., Class B     2,598,284       3,162,112  
Huatai Securities Co. Ltd., Class A     4,912,551       13,036,511  
Huatai Securities Co. Ltd., Class H(c)     13,638,200       23,695,630  
Huaxia Bank Co. Ltd., Class A     12,029,512       11,960,331  
Huaxin Cement Co. Ltd., Class A     802,569       2,800,300  
Huayu Automotive Systems Co. Ltd., Class A     2,423,718       9,760,473  
Huazhu Group Ltd., ADR(b)     1,149,387       38,791,811  
Hubei Biocause Pharmaceutical Co. Ltd., Class A     3,176,671       2,708,500  
Hundsun Technologies Inc., Class A     675,522       9,295,651  
Hutchison China MediTech Ltd., ADR(a)(b)     526,310       12,273,549  
HUYA Inc., ADR(a)(b)     553,523       10,965,291  
Iflytek Co. Ltd., Class A     1,796,784       9,919,301  
IGG Inc.(b)     11,621,000       8,455,107  
IMAX China Holding Inc.(c)     1,293,800       2,423,888  
Industrial & Commercial Bank of China Ltd., Class A     30,099,280       22,821,405  
Industrial & Commercial Bank of China Ltd., Class H     565,716,000       386,917,353  
Industrial Bank Co. Ltd., Class A     11,333,578       28,033,184  
Industrial Securities Co. Ltd., Class A     4,159,200       4,111,481  
Inner Mongolia BaoTou Steel Union Co. Ltd., Class A     40,572,800       6,790,961  
Inner Mongolia Yili Industrial Group Co. Ltd., Class A     3,383,188       13,992,155  
Inner Mongolia Yitai Coal Co. Ltd., Class B     10,210,995       7,004,743  
Innovent Biologics Inc.(a)(c)     6,658,500       30,417,179  
Inspur Electronic Information Industry Co. Ltd., Class A     689,700       4,148,935  
Inspur International Ltd.(b)     5,134,000       2,108,135  
iQIYI Inc., ADR(a)(b)     1,133,868       25,432,659  
Jafron Biomedical Co. Ltd., Class A     233,470       3,016,653  
JD.com Inc., ADR(a)(b)     6,410,670       246,874,902  
Jiangsu Expressway Co. Ltd., Class H     10,498,000       12,137,351  
Jiangsu Hengli Hydraulic Co. Ltd., Class A     466,400       3,869,875  
Jiangsu Hengrui Medicine Co. Ltd., Class A     2,489,455       29,947,394  
Jiangsu King’s Luck Brewery JSC Ltd., Class A     740,095       3,123,344  
Jiangsu Yanghe Brewery Joint-Stock Co. Ltd., Class A     843,447       11,750,003  
Jiangsu Zhongnan Construction Group Co. Ltd., Class A     2,029,700       2,410,018  
Jiangxi Copper Co. Ltd., Class H     10,666,000       12,509,510  
Jiangxi Zhengbang Technology Co. Ltd., Class A     1,343,800       2,906,677  
Jiayuan International Group Ltd.(b)     11,244,000       4,443,898  
Jinchuan Group International Resources Co. Ltd.(b)     29,556,000       2,920,310  
Jinke Properties Group Co. Ltd., Class A     3,020,900       3,254,181  
JinkoSolar Holding Co. Ltd., ADR(a)(b)     288,625       6,592,195  
JNBY Design Ltd.     1,752,500       1,888,991  
Jonjee Hi-Tech Industrial And Commercial Holding  Co. Ltd., Class A     445,842       2,410,922  
JOYY Inc.(a)     499,908       26,980,035  
Juewei Food Co. Ltd., Class A     436,400       2,535,917  
Jumei International Holding Ltd., ADR(a)(b)     86,256       1,670,779  
Kaisa Group Holdings Ltd.     22,316,000       9,907,977  
Kama Co. Ltd., Class B(a)     4,211,624       1,773,094  
Kasen International Holdings Ltd.(a)(b)     5,729,000       1,073,308  
Kingboard Holdings Ltd.     6,078,200       16,066,998  
Kingboard Laminates Holdings Ltd.     9,936,500       9,907,110  

 


 

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Consolidated Schedule of Investments (unaudited) (continued) iShares® Core MSCI Emerging Markets ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
China (continued)                
Kingdee International Software Group Co. Ltd.(b)     20,760,000     $ 26,559,203  
Kingsoft Corp. Ltd.(a)(b)     7,263,000       23,486,004  
Konka Group Co. Ltd., Class B     9,188,818       3,843,880  
Kunlun Energy Co. Ltd.     30,092,000       21,005,958  
Kweichow Moutai Co. Ltd., Class A     660,692       99,904,358  
KWG Group Holdings Ltd.     11,465,500       16,801,639  
Lee & Man Paper Manufacturing Ltd.     12,871,000       10,041,727  
Lee’s Pharmaceutical Holdings Ltd.(b)     3,507,000       1,764,064  
Legend Holdings Corp., Class H(c)     3,657,300       6,288,657  
Lenovo Group Ltd.(b)     63,010,000       38,890,819  
Lens Technology Co. Ltd., Class A     1,718,900       4,787,700  
Lepu Medical Technology Beijing Co. Ltd., Class A     1,083,200       5,315,121  
Li Ning Co. Ltd.     17,693,000       46,542,304  
Lifetech Scientific Corp.(a)(b)     28,560,000       5,607,150  
Lingyi iTech Guangdong Co., Class A(a)     4,841,433       7,847,191  
Logan Property Holdings Co. Ltd.(b)     12,226,000       20,865,489  
Lomon Billions Group Co. Ltd., Class A     1,568,375       3,504,623  
Longfor Group Holdings Ltd.(c)     15,709,500       72,670,838  
LONGi Green Energy Technology Co. Ltd., Class A     2,293,558       10,072,992  
Lonking Holdings Ltd.     19,772,000       5,505,577  
Luckin Coffee Inc., ADR(a)     525,426       20,785,853  
Luthai Textile Co. Ltd., Class B     3,310,921       3,088,700  
Luxshare Precision Industry Co. Ltd., Class A     3,106,779       21,244,605  
Luye Pharma Group Ltd.(b)(c)     10,788,000       6,575,474  
Luzhou Laojiao Co. Ltd., Class A     832,554       8,908,907  
Mango Excellent Media Co. Ltd., Class A(a)     1,386,287       8,739,903  
Meinian Onehealth Healthcare Holdings Co. Ltd., Class A     2,429,228       4,576,827  
Meitu Inc.(a)(b)(c)     20,807,500       4,912,813  
Meituan Dianping, Class B(a)     9,076,900       115,193,077  
Metallurgical Corp. of China Ltd., Class H     23,322,000       4,518,926  
MMG Ltd.(a)(b)     23,939,999       4,884,429  
Momo Inc., ADR     1,302,182       36,617,358  
Muyuan Foodstuff Co. Ltd., Class A     1,136,531       18,941,641  
NARI Technology Co. Ltd., Class A     2,718,702       7,712,492  
NAURA Technology Group Co. Ltd., Class A     260,300       5,511,574  
NavInfo Co. Ltd., Class A     1,229,100       3,010,242  
NetDragon Websoft Holdings Ltd.(b)     2,214,500       6,109,514  
NetEase Inc., ADR     618,314       197,062,855  
New China Life Insurance Co. Ltd., Class A     1,348,301       8,521,636  
New China Life Insurance Co. Ltd., Class H     7,110,800       27,054,262  
New Hope Liuhe Co. Ltd., Class A     2,499,250       8,652,378  
New Oriental Education & Technology Group Inc., ADR(a)(b)     1,283,694       164,171,626  
Nexteer Automotive Group Ltd.     8,131,000       5,988,918  
Nine Dragons Paper Holdings Ltd.(b)     15,193,000       17,935,930  
Ninestar Corp., Class A     574,500       3,417,314  
Ningbo Zhoushan Port Co. Ltd., Class A     5,642,000       2,655,458  
NIO Inc., ADR(a)(b)     5,801,765       23,961,289  
Noah Holdings Ltd.(a)(b)     282,701       8,023,054  
Offshore Oil Engineering Co. Ltd., Class A     2,322,400       1,930,294  
OFILM Group Co. Ltd., Class A(a)     1,480,700       3,918,765  
OneSmart International Education Group Ltd., ADR(a)(b)     787,867       4,285,996  
Oppein Home Group Inc., Class A     164,600       2,593,965  
Orient Securities Co. Ltd., Class A     4,906,568       6,998,152  
Oriental Pearl Group Co. Ltd., Class A     2,212,500       3,215,788  
Panda Green Energy Group Ltd.(a)(b)     49,746,852       1,391,601  
PAX Global Technology Ltd.     10,476,000       5,202,343  
Security   Shares     Value  
China (continued)                
People’s Insurance Co. Group of China Ltd. (The), Class H     73,263,000     $ 25,946,950  
Perfect World Co. Ltd., Class A     708,200       5,172,042  
PetroChina Co. Ltd., Class A     8,541,000       6,194,797  
PetroChina Co. Ltd., Class H     182,462,000       70,708,547  
PICC Property & Casualty Co. Ltd., Class H     60,223,040       62,363,251  
Pinduoduo Inc., ADR(a)(b)     1,697,768       60,746,139  
Ping An Bank Co. Ltd., Class A     10,209,536       21,177,974  
Ping An Healthcare and Technology Co. Ltd.(a)(c)     2,841,700       27,767,749  
Ping An Insurance Group Co. of China Ltd., Class A     5,826,636       64,783,003  
Ping An Insurance Group Co. of China Ltd., Class H     48,737,000       541,900,931  
Poly Developments and Holdings Group Co. Ltd., Class A     7,117,911       16,485,791  
Poly Property Group Co. Ltd.     20,853,000       7,840,228  
Postal Savings Bank of China Co. Ltd., Class H(c)     68,995,000       43,558,735  
Pou Sheng International Holdings Ltd.     20,877,000       5,331,062  
Power Construction Corp. of China Ltd., Class A     15,836,544       9,628,525  
Q Technology Group Co. Ltd.(a)(b)     4,055,000       5,702,876  
Qudian Inc., ADR(a)(b)     1,415,848       3,709,522  
Realord Group Holdings Ltd.(a)(b)     5,828,000       3,380,263  
Redco Properties Group Ltd.(c)     8,150,000       3,764,893  
Redsun Properties Group Ltd.     9,964,000       3,132,509  
RISE Education Cayman Ltd., ADR(a)(b)     281,689       1,560,557  
RiseSun Real Estate Development Co. Ltd., Class A     2,644,062       3,237,843  
Road King Infrastructure Ltd.     3,813,000       6,507,452  
Rongsheng Petro Chemical Co. Ltd., Class A     3,900,600       5,775,401  
Ronshine China Holdings Ltd.     5,599,000       6,200,316  
SAIC Motor Corp. Ltd., Class A     4,486,300       14,254,345  
Sanan Optoelectronics Co. Ltd., Class A     3,348,700       11,808,740  
Sangfor Technologies Inc., Class A     181,400       5,169,363  
Sany Heavy Equipment International Holdings Co. Ltd.     12,517,000       7,468,713  
Sany Heavy Industry Co. Ltd., Class A     5,758,016       14,357,560  
SDIC Capital Co. Ltd., Class A     1,999,300       3,706,751  
SDIC Power Holdings Co. Ltd., Class A     5,184,754       5,607,385  
Seazen Group Ltd(b)     17,664,000       18,155,746  
Seazen Holdings Co. Ltd., Class A     1,383,200       6,351,853  
Semiconductor Manufacturing International Corp.(a)(b)     27,003,700       52,323,015  
SF Holding Co. Ltd., Class A     878,092       6,148,980  
Shaanxi Coal Industry Co. Ltd., Class A     6,542,054       7,393,526  
Shandong Airlines Co. Ltd., Class B     2,048,918       2,119,103  
Shandong Gold Mining Co. Ltd., Class A     1,482,778       7,195,192  
Shandong Hualu Hengsheng Chemical Co. Ltd., Class A     1,237,700       2,988,809  
Shandong Weigao Group Medical Polymer Co. Ltd., Class H     18,084,000       23,298,113  
Shang Gong Group Co. Ltd., Class B(a)     4,663,060       2,033,094  
Shanghai Baosight Software Co. Ltd., Class A     458,700       2,978,512  
Shanghai Chlor-Alkali Chemical Co. Ltd., Class B     5,062,327       2,804,529  
Shanghai Construction Group Co. Ltd., Class A     4,764,600       2,283,398  
Shanghai Electric Group Co. Ltd., Class H     25,744,000       7,267,604  
Shanghai Fosun Pharmaceutical Group Co. Ltd., Class H     4,728,500       13,318,351  
Shanghai Fudan Microelectronics Group Co. Ltd., Class H(a)(b)     2,834,000       2,167,398  
Shanghai Haixin Group Co., Class B     5,874,110       2,273,281  
Shanghai Haohai Biological Technology Co. Ltd., Class H(a)(b)(c)     488,500       2,491,691  

 


 

C o n s o l i d a t e d   S c h e d u l e   o f   I n v e s t m e n t s 13

 

 

 

 

 

Consolidated Schedule of Investments (unaudited) (continued) iShares® Core MSCI Emerging Markets ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
China (continued)                
Shanghai Industrial Holdings Ltd.     4,428,000     $ 7,818,413  
Shanghai Industrial Urban Development Group Ltd.     25,138,000       2,806,354  
Shanghai International Airport Co. Ltd., Class A     635,203       5,971,101  
Shanghai International Port Group Co. Ltd., Class A     7,670,500       4,981,842  
Shanghai Jinjiang International Industrial Investment Co. Ltd., Class B     2,979,041       2,204,490  
Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd., Class B     9,901,004       7,841,595  
Shanghai M&G Stationery Inc., Class A     523,900       3,327,682  
Shanghai Pharmaceuticals Holding Co. Ltd., Class H     7,526,700       13,772,623  
Shanghai Pudong Development Bank Co. Ltd., Class A     16,328,822       25,345,157  
Shanxi Meijin Energy Co. Ltd., Class A(a)     2,313,717       2,760,493  
Shanxi Xinghuacun Fen Wine Factory Co. Ltd., Class A     533,514       6,582,871  
Shenergy Co. Ltd., Class A     3,049,900       2,299,358  
Sheng Ye Capital Ltd.(b)     2,706,000       2,423,683  
Shengyi Technology Co. Ltd., Class A     2,097,000       9,254,735  
Shennan Circuits Co. Ltd., Class A     303,900       9,024,572  
Shenwan Hongyuan Group Co. Ltd., Class A     20,038,472       13,415,932  
Shenzhen Goodix Technology Co. Ltd., Class A     296,900       13,160,916  
Shenzhen Inovance Technology Co. Ltd., Class A     980,616       3,971,451  
Shenzhen International Holdings Ltd.     8,895,250       17,030,191  
Shenzhen Investment Ltd.     26,610,000       8,946,202  
Shenzhen Kangtai Biological Products Co. Ltd., Class A     559,400       8,885,323  
Shenzhen Mindray Bio-Medical Electronics Co. Ltd., Class A     524,400       17,929,616  
Shenzhen Overseas Chinese Town Co. Ltd., Class A     7,383,902       6,897,783  
Shenzhen Sunway Communication Co. Ltd., Class A(a)     566,600       4,047,143  
Shenzhou International Group Holdings Ltd.     6,849,800       84,160,675  
Shimao Property Holdings Ltd.     10,099,500       36,157,352  
Shougang Concord International Enterprises  Co. Ltd.     177,588,000       7,633,979  
Shougang Fushan Resources Group Ltd.     26,724,000       5,178,106  
Shui On Land Ltd.     39,364,666       7,829,442  
Sichuan Chuantou Energy Co. Ltd., Class A     1,689,855       2,211,979  
Sichuan Kelun Pharmaceutical Co. Ltd., Class A     824,800       2,707,957  
Sichuan Swellfun Co. Ltd., Class A     285,500       1,837,113  
Sihuan Pharmaceutical Holdings Group Ltd.(b)     35,844,000       4,231,524  
Silver Grant International Holdings Group Ltd.(a)     13,488,000       1,955,773  
SINA Corp.(a)(b)     543,931       17,813,740  
Sino Biopharmaceutical Ltd.(b)     61,988,000       89,724,131  
Sinofert Holdings Ltd.     31,914,000       3,194,246  
Sino-Ocean Group Holding Ltd.     26,290,000       9,547,058  
Sinopec Engineering Group Co. Ltd., Class H     13,162,000       6,519,311  
Sinopec Kantons Holdings Ltd.(b)     11,188,000       4,522,260  
Sinopec Shanghai Petrochemical Co. Ltd., Class H     31,319,000       7,997,486  
Sinopharm Group Co. Ltd., Class H     10,681,600       32,964,305  
Sinosoft Technology Group Ltd.(b)     7,357,600       1,538,921  
Sinotrans Ltd., Class H     24,780,000       6,995,464  
Sinotruk Hong Kong Ltd.     6,238,000       11,926,807  
Skyfame Realty Holdings Ltd.     30,686,000       4,016,363  
Skyworth Group Ltd.(a)(b)     17,960,000       4,494,004  
SMI Holdings Group Ltd.(a)(b)(d)     14,455,599       2,819,501  
SOHO China Ltd.     20,630,000       7,465,190  
Sohu.com Ltd., ADR(a)(b)     304,871       2,905,421  
Security   Shares     Value  
China (continued)                
Songcheng Performance Development Co. Ltd., Class A     708,891     $ 2,796,946  
Spring Airlines Co. Ltd., Class A     517,896       2,637,564  
SSY Group Ltd.(b)     14,588,411       12,224,010  
Sun Art Retail Group Ltd.     21,220,500       27,121,112  
Sunac China Holdings Ltd.     21,335,000       116,352,070  
Suning.com Co. Ltd., Class A     7,024,050       9,324,938  
Sunny Optical Technology Group Co. Ltd.     6,233,600       96,946,936  
Superb Summit International Group Ltd.(a)(b)(d)     6,035,000       7,744  
Suzhou Dongshan Precision Manufacturing Co. Ltd., Class A     897,900       3,635,171  
TAL Education Group, ADR(a)(b)     3,437,150       186,946,588  
TCL Electronics Holdings Ltd.     8,574,000       4,774,916  
TCL Technology Group Corp., Class A     7,618,400       6,408,428  
Tencent Holdings Ltd.     50,133,700       2,483,187,994  
Tencent Music Entertainment Group, ADR(a)(b)     850,370       10,314,988  
Texhong Textile Group Ltd.     2,358,500       2,484,686  
Tian Ge Interactive Holdings Ltd.(a)(b)(c)     7,370,000       1,655,000  
Tiangong International Co. Ltd.     12,386,000       4,418,434  
Tianjin Development Holdings Ltd.     10,730,000       2,684,892  
Tianjin Port Development Holdings Ltd.     44,356,000       3,927,299  
Tianjin Zhonghuan Semiconductor Co. Ltd., Class A     1,484,291       3,732,917  
Tianma Microelectronics Co. Ltd., Class A     1,165,776       2,701,721  
Tianneng Power International Ltd.     6,590,000       4,879,258  
Tianqi Lithium Corp., Class A     817,793       3,710,966  
Tingyi Cayman Islands Holding Corp.     17,418,000       31,693,270  
Toly Bread Co. Ltd., Class A     420,979       2,648,659  
Tong Ren Tang Technologies Co. Ltd., Class H     5,939,000       5,487,043  
Tongda Group Holdings Ltd.(b)     39,250,000       3,727,039  
Tonghua Dongbao Pharmaceutical Co. Ltd., Class A     1,202,499       1,961,101  
Tongwei Co. Ltd., Class A     3,686,759       9,097,965  
Topchoice Medical Corp., Class A(a)     196,099       2,920,080  
Topsports International Holdings Ltd.(c)     4,278,000       4,946,046  
Towngas China Co. Ltd.     10,232,000       5,934,601  
TravelSky Technology Ltd., Class H     8,063,000       15,767,911  
Trip.com Group Ltd., ADR(a)(b)     4,102,732       124,558,944  
Truly International Holdings Ltd.(a)     21,230,000       2,860,433  
Tsaker Chemical Group Ltd.(c)     4,296,500       931,739  
Tsingtao Brewery Co. Ltd., Class H     3,512,000       18,251,647  
Unigroup Guoxin Microelectronics Co. Ltd., Class A     334,410       2,772,318  
Uni-President China Holdings Ltd.     11,516,000       11,880,925  
Unisplendour Corp. Ltd., Class A     1,590,497       10,334,522  
Venustech Group Inc., Class A     497,384       2,959,315  
Vinda International Holdings Ltd.     2,972,000       7,646,377  
Vipshop Holdings Ltd., ADR(a)(b)     3,824,054       49,062,613  
Walvax Biotechnology Co. Ltd., Class A     1,087,588       4,449,804  
Wanda Film Holding Co. Ltd., Class A(a)     1,165,638       2,701,401  
Wanhua Chemical Group Co. Ltd., Class A     2,068,778       13,921,679  
Want Want China Holdings Ltd.(b)     44,320,000       34,236,454  
Wasion Holdings Ltd.     6,370,000       2,574,794  
Weibo Corp., ADR(a)(b)     476,797       20,092,226  
Weichai Power Co. Ltd., Class A     4,639,600       9,511,240  
Weichai Power Co. Ltd., Class H     18,198,000       35,821,318  
Wens Foodstuffs Group Co. Ltd., Class A     2,878,624       13,396,132  
West China Cement Ltd.     26,474,000       4,280,383  
Western Securities Co. Ltd., Class A     2,340,535       3,170,849  
Wharf Holdings Ltd. (The)     8,853,000       18,676,041  
Will Semiconductor Ltd., Class A     465,703       11,606,932  
Wingtech Technology Co. Ltd., Class A(a)     491,700       9,803,472  

 


 

14 2 0 2 0   i  S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

 

 

Consolidated Schedule of Investments (unaudited) (continued) iShares® Core MSCI Emerging Markets ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
China (continued)                
Winning Health Technology Group Co. Ltd., Class A     1,226,435     $ 4,512,590  
Wisdom Education International Holdings Co. Ltd.     6,750,000       2,572,484  
Wise Talent Information Technology Co. Ltd.(a)     1,264,000       3,114,159  
Wuhu Sanqi Interactive Entertainment Network Technology Group Co. Ltd., Class A     1,149,983       5,570,431  
Wuliangye Yibin Co. Ltd., Class A     2,072,866       35,762,588  
WUS Printed Circuit Kunshan Co. Ltd., Class A     923,597       3,448,525  
WuXi AppTec Co. Ltd., Class A     907,995       13,768,915  
WuXi AppTec Co. Ltd., Class H(c)     1,374,240       20,261,666  
Wuxi Biologics Cayman Inc.(a)(c)     6,605,000       96,620,707  
Wuxi Lead Intelligent Equipment Co. Ltd., Class A     479,773       3,853,860  
XCMG Construction Machinery Co. Ltd., Class A     5,045,978       3,804,226  
Xiamen International Port Co. Ltd., Class H     22,768,000       2,629,420  
Xiaomi Corp., Class B(a)(b)(c)     90,911,800       146,521,863  
Xingda International Holdings Ltd.     13,117,000       3,888,114  
Xinhu Zhongbao Co. Ltd., Class A     4,834,400       2,178,530  
Xinjiang Goldwind Science & Technology Co. Ltd., Class H     7,022,634       6,974,828  
Xinyi Solar Holdings Ltd.     32,228,800       25,516,543  
Xtep International Holdings Ltd.     10,564,500       4,256,681  
Yadea Group Holdings Ltd.(c)     11,290,000       3,056,813  
Yango Group Co. Ltd., Class A     2,308,600       2,645,402  
Yantai Jereh Oilfield Services Group Co. Ltd., Class A     596,098       2,950,558  
Yanzhou Coal Mining Co. Ltd., Class H     16,118,000       12,223,376  
Yealink Network Technology Corp. Ltd., Class A     279,685       4,172,749  
YiChang HEC ChangJiang Pharmaceutical Co. Ltd., Class H(c)     1,550,400       9,459,906  
Yifeng Pharmacy Chain Co. Ltd., Class A     220,384       2,575,802  
Yihai International Holding Ltd.     4,375,000       29,276,888  
Yintech Investment Holdings Ltd., ADR(a)(b)     220,930       1,369,766  
Yonghui Superstores Co. Ltd., Class A     5,792,696       7,126,718  
Yonyou Network Technology Co. Ltd., Class A     1,859,863       12,255,056  
Youyuan International Holdings Ltd.(a)(b)(d)     5,307,000       150,499  
Yuexiu Property Co. Ltd.     57,362,880       11,703,631  
Yuexiu REIT     13,775,000       8,838,003  
Yuexiu Transport Infrastructure Ltd.     11,048,000       8,576,924  
Yum China Holdings Inc.     3,138,824       137,449,103  
Yunda Holding Co. Ltd., Class A     784,300       3,318,874  
Yunnan Baiyao Group Co. Ltd., Class A     754,364       8,492,018  
Yunnan Energy New Material Co. Ltd., Class A     518,795       4,329,848  
Yuzhou Properties Co. Ltd.     17,240,400       8,450,905  
Zai Lab Ltd., ADR(a)(b)     330,607       18,173,467  
Zhangzhou Pientzehuang Pharmaceutical Co. Ltd., Class A     476,369       8,184,589  
Zhaojin Mining Industry Co. Ltd., Class H     11,273,500       13,439,002  
Zhejiang Chint Electrics Co. Ltd., Class A     1,983,673       7,653,524  
Zhejiang Dahua Technology Co. Ltd., Class A     2,684,229       7,441,898  
Zhejiang Expressway Co. Ltd., Class H     13,052,000       9,864,723  
Zhejiang Huayou Cobalt Co. Ltd., Class A     589,792       3,188,498  
Zhejiang Longsheng Group Co. Ltd., Class A     1,793,874       3,315,621  
Zhejiang NHU Co. Ltd., Class A     2,023,508       6,976,416  
Zhejiang Sanhua Intelligent Controls Co. Ltd., Class A     1,516,185       4,312,002  
Zhejiang Supor Co. Ltd., Class A     261,297       2,745,596  
Zhejiang Wolwo Bio-Pharmaceutical Co. Ltd., Class A     302,598       1,869,214  
Zhengzhou Yutong Bus Co. Ltd., Class A     1,373,179       2,962,367  
Zhenro Properties Group Ltd.     11,857,000       7,713,923  
Security   Shares     Value  
China (continued)                
ZhongAn Online P&C Insurance Co. Ltd., Class H(a)(b)(c)     2,826,400     $ 11,895,974  
Zhongji Innolight Co. Ltd., Class A     460,180       4,084,228  
Zhongjin Gold Corp. Ltd., Class A     2,507,079       2,908,702  
Zhongsheng Group Holdings Ltd.(b)     5,105,500       19,424,753  
Zhuguang Holdings Group Co. Ltd.(a)     17,842,000       2,518,423  
Zhuzhou CRRC Times Electric Co. Ltd., Class H     4,758,800       16,640,122  
Zijin Mining Group Co. Ltd., Class A     13,114,700       7,804,806  
Zijin Mining Group Co. Ltd., Class H     46,906,000       21,066,335  
Zoomlion Heavy Industry Science and Technology  Co. Ltd., Class H     5,358,800       4,442,144  
ZTE Corp., Class A(a)     2,012,900       14,398,014  
ZTE Corp., Class H(a)     6,681,240       27,648,994  
ZTO Express Cayman Inc., ADR     2,772,377       65,039,964  
              18,831,920,316  
Colombia — 0.2%                
Bancolombia SA     1,862,530       20,478,557  
Cementos Argos SA     4,232,024       6,323,470  
Corp. Financiera Colombiana SA(a)     897,773       8,149,930  
Ecopetrol SA     43,234,990       37,846,736  
Grupo Argos SA     2,689,916       11,375,263  
Grupo de Inversiones Suramericana SA     2,130,623       18,320,525  
Interconexion Electrica SA ESP     3,981,196       20,876,513  
              123,370,994  
Czech Republic — 0.1%                
Central European Media Enterprises Ltd.,                
Class A(a)     780,681       3,365,338  
CEZ AS     1,340,875       25,513,832  
Komercni Banka AS     680,039       20,725,657  
Moneta Money Bank AS(c)     4,722,676       15,574,161  
              65,178,988  
Egypt — 0.2%                
Commercial International Bank Egypt SAE     11,883,808       62,762,014  
Eastern Co. SAE     8,465,914       7,765,950  
Egyptian Financial Group-Hermes Holding Co.     6,521,511       6,053,230  
EISewedy Electric Co.     6,626,213       4,005,611  
Ezz Steel Co. SAE(a)     2,374,237       1,211,989  
Heliopolis Housing.     5,686,644       2,026,202  
Juhayna Food Industries     2,772,405       1,417,017  
Medinet Nasr Housing(a)     9,831,429       2,679,155  
Oriental Weavers     2,364,462       1,576,056  
Palm Hills Developments SAE(a)     16,480,076       1,485,394  
Pioneers Holding For Financial Investments SAE(a)     4,803,828       1,404,349  
Six of October Development & Investment     3,016,654       2,365,852  
Talaat Moustafa Group.     7,051,367       3,392,054  
Telecom Egypt Co.     4,816,660       3,780,612  
              101,925,485  
Greece — 0.3%                
Alpha Bank AE(a)     13,614,494       19,246,874  
Athens Water Supply & Sewage Co. SA     440,274       3,095,160  
Eurobank Ergasias SA(a)     23,198,728       14,423,171  
FF Group(a)(d)     343,633       3,775  
GEK Terna Holding Real Estate Construction SA(a)     503,378       3,339,730  
Hellenic Exchanges-Athens Stock Exchange SA     836,149       3,306,483  
Hellenic Telecommunications Organization SA     2,106,592       29,665,291  
Holding Co. ADMIE IPTO SA     1,372,335       3,225,924  
Jumbo SA.     984,594       15,379,313  
Motor Oil Hellas Corinth Refineries SA     538,190       8,749,384  
Mytilineos SA     998,496       7,469,192  

 


 

C o n s o l i d a t e d   S c h e d u l e   o f   I n v e s t m e n t s 15

 

 

 

 

 

Consolidated Schedule of Investments (unaudited) (continued) iShares® Core MSCI Emerging Markets ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Greece (continued)                
National Bank of Greece SA(a)     4,928,993     $ 10,825,794  
OPAP SA     1,744,999       18,592,897  
Piraeus Bank SA(a)(b)     2,540,139       5,535,786  
Piraeus Port Authority SA     77,066       1,386,618  
Public Power Corp. SA(a)(b)     1,066,802       3,461,581  
Sarantis SA     234,742       1,859,115  
Terna Energy SA(a)     422,667       3,500,659  
Titan Cement International SA(a)     383,512       5,383,813  
              158,450,560  
Hungary — 0.3%                
Magyar Telekom Telecommunications PLC     4,691,347       6,074,361  
MOL Hungarian Oil & Gas PLC     3,462,389       26,628,290  
Opus Global Nyrt(a)(b)     2,015,203       1,720,293  
OTP Bank Nyrt     1,994,151       86,218,997  
Richter Gedeon Nyrt     1,239,193       25,055,324  
              145,697,265  
India — 9.3%                
Aarti Industries Ltd.     383,315       5,184,253  
Aarti Surfactants Ltd.(a)     17,751       118,287  
Aavas Financiers Ltd.(a)     224,339       5,840,570  
Adani Enterprises Ltd.     1,399,207       4,239,257  
Adani Ports & Special Economic Zone Ltd.     5,203,421       24,673,304  
Adani Power Ltd.(a)     7,127,972       4,671,813  
Adani Transmission Ltd.(a)     1,922,943       6,712,015  
Aditya Birla Fashion and Retail Ltd.(a)     1,588,309       5,532,974  
Aegis Logistics Ltd.     767,231       2,373,959  
AIA Engineering Ltd.     375,399       9,304,152  
Ajanta Pharma Ltd.     218,494       4,193,674  
Alembic Pharmaceuticals Ltd.     362,650       3,165,571  
Amara Raja Batteries Ltd.     352,846       3,117,884  
Ambuja Cements Ltd.     4,930,433       14,008,872  
Apollo Hospitals Enterprise Ltd.     724,203       17,418,804  
Apollo Tyres Ltd.     2,513,323       4,973,188  
Arvind Fashions Ltd.(a)     290,474       1,391,643  
Ashok Leyland Ltd.     10,407,268       10,080,272  
Asian Paints Ltd.     2,577,492       64,214,525  
Astral Poly Technik Ltd.     515,483       8,174,299  
Atul Ltd.     126,427       9,010,929  
AU Small Finance Bank Ltd.(c)     1,314,425       21,180,515  
Aurobindo Pharma Ltd.     2,294,339       16,070,785  
Avanti Feeds Ltd.     397,469       2,548,362  
Avenue Supermarts Ltd.(a)(c)     1,084,215       34,914,074  
Axis Bank Ltd.     18,561,886       179,349,473  
Bajaj Auto Ltd.     713,232       28,561,894  
Bajaj Consumer Care Ltd.(a)     618,746       1,648,732  
Bajaj Electricals Ltd.     278,629       1,557,087  
Bajaj Electricals Ltd./New     30,696       39,685  
Bajaj Finance Ltd.     1,664,747       103,017,430  
Bajaj Finserv Ltd.     369,471       46,336,504  
Balkrishna Industries Ltd.     682,970       10,375,977  
Bandhan Bank Ltd.(c)     3,372,835       17,923,334  
BASF India Ltd.     96,052       1,366,696  
Bata India Ltd.     470,860       10,769,738  
Bayer CropScience Ltd./India     104,627       6,353,009  
Berger Paints India Ltd.     1,913,373       15,020,909  
Bharat Forge Ltd.     1,827,658       11,026,602  
Bharat Petroleum Corp. Ltd.     5,652,279       33,392,443  
Bharti Airtel Ltd.(a)     21,128,014       153,261,722  
Bharti Infratel Ltd.     2,963,978       8,807,636  
Security   Shares     Value  
India (continued)                
Birlasoft Ltd.(a)     1,828,969     $ 2,273,302  
Blue Dart Express Ltd.     84,020       3,199,903  
Blue Star Ltd.     207,370       2,306,091  
Bosch Ltd.     65,057       10,933,461  
Britannia Industries Ltd.     486,448       20,020,755  
Can Fin Homes Ltd.     298,248       2,066,566  
Ceat Ltd.     213,189       3,016,713  
Century Plyboards India Ltd.     677,346       1,471,685  
Century Textiles & Industries Ltd.     397,440       2,790,768  
CESC Ltd.     594,050       5,325,398  
Chambal Fertilizers and Chemicals Ltd.     1,047,536       2,045,212  
Cholamandalam Financial Holdings Ltd.(a)     664,623       4,724,448  
Cipla Ltd.     2,941,597       16,389,873  
City Union Bank Ltd.     2,391,221       7,132,162  
Coal India Ltd.     10,537,424       24,588,661  
Colgate-Palmolive India Ltd.     510,706       9,096,359  
Container Corp. of India Ltd.     1,780,196       12,571,821  
Coromandel International Ltd.     632,834       5,397,296  
CRISIL Ltd.     217,247       4,572,971  
Crompton Greaves Consumer Electricals Ltd.     3,209,580       12,408,256  
Dabur India Ltd.     4,811,555       33,076,003  
Dalmia Bharat Ltd.(a)     421,728       4,570,388  
DCB Bank Ltd.     1,933,369       4,334,626  
Dilip Buildcon Ltd.(c)     335,943       1,392,790  
Dish TV India Ltd.(a)     6,601,927       754,715  
Dishman Carbogen Amcis Ltd.     680,134       726,149  
Divi’s Laboratories Ltd.     704,093       20,556,189  
DLF Ltd.     5,117,141       14,301,830  
Dr Lal PathLabs Ltd.(c)     239,823       5,410,577  
Dr. Reddy’s Laboratories Ltd.     982,064       39,832,328  
Edelweiss Financial Services Ltd.     4,102,630       4,965,736  
Eicher Motors Ltd.     115,654       26,606,550  
EIH Ltd.     1,388,650       2,537,063  
Endurance Technologies Ltd.(c)     261,871       3,561,525  
Engineers India Ltd.     1,949,185       1,890,643  
Equitas Holdings Ltd./India(a)     434,912       649,950  
Escorts Ltd.     546,837       5,911,076  
Exide Industries Ltd.     2,135,410       4,863,057  
Federal Bank Ltd.     12,829,777       15,271,110  
Finolex Cables Ltd.     919,336       4,137,601  
Fortis Healthcare Ltd.(a)     4,105,168       8,762,963  
Future Consumer Ltd.(a)     5,864,562       999,537  
GAIL India Ltd.     13,588,565       19,657,688  
GE T&D India Ltd.     825,295       1,378,017  
Gillette India Ltd.     53,666       4,310,235  
Glenmark Pharmaceuticals Ltd.     1,294,545       4,978,709  
GMR Infrastructure Ltd.(a)     12,543,072       3,476,100  
Godrej Consumer Products Ltd.     3,046,456       23,660,770  
Godrej Industries Ltd.     896,520       4,870,346  
Godrej Properties Ltd.(a)     548,642       7,625,529  
Granules India Ltd.     1,278,579       2,786,857  
Graphite India Ltd.     580,261       1,793,428  
Grasim Industries Ltd.     2,601,060       24,768,053  
Great Eastern Shipping Co. Ltd. (The)     509,261       1,705,946  
Gujarat Fluorochemicals Ltd.(a)     250,860       1,751,944  
Gujarat Narmada Valley Fertilizers &                
Chemicals Ltd.     576,030       1,243,971  
Gujarat Pipavav Port Ltd.     2,481,662       2,463,866  
Gujarat State Petronet Ltd.     1,357,224       4,239,944  
Havells India Ltd.     2,260,811       19,205,185  

 


 

16 2 0 2 0   i  S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

 

 

Consolidated Schedule of Investments (unaudited) (continued) iShares® Core MSCI Emerging Markets ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
India (continued)                
HCL Technologies Ltd.     9,461,276     $ 70,054,149  
HDFC Asset Management Co. Ltd.(c)     364,436       15,863,640  
HDFC Life Insurance Co. Ltd. (c)     4,387,805       33,081,438  
HEG Ltd.     108,368       1,315,943  
Hemisphere Properties India Ltd.(a)     713,675       1,522,632  
Hero MotoCorp Ltd.     837,482       23,809,938  
Hexaware Technologies Ltd.     1,109,130       5,525,094  
HFCL Ltd.     6,064,367       1,222,663  
Himadri Speciality Chemical Ltd.     1,246,737       850,823  
Hindalco Industries Ltd.     10,218,642       22,074,844  
Hindustan Petroleum Corp. Ltd.     5,228,610       14,312,702  
Hindustan Unilever Ltd.     5,961,289       179,641,989  
Housing Development Finance Corp. Ltd.     14,402,767       434,223,443  
ICICI Bank Ltd.     41,793,837       287,968,759  
ICICI Lombard General Insurance Co. Ltd.(c)     1,550,729       26,573,028  
ICICI Prudential Life Insurance Co. Ltd.(c)     2,861,619       18,692,170  
ICICI Securities Ltd.(c)     648,961       4,282,194  
IDFC First Bank Ltd.(a)     17,094,446       8,716,882  
IDFC Ltd.     8,581,454       3,822,964  
IIFL Finance Ltd.     1,233,786       2,784,962  
IIFL Wealth Management Ltd.     204,322       4,144,763  
India Cements Ltd. (The)     2,359,927       3,150,711  
Indiabulls Housing Finance Ltd.     2,206,648       8,556,905  
Indiabulls Ventures Ltd.     1,746,440       4,112,758  
Indian Hotels Co. Ltd. (The)     4,308,071       8,058,885  
Indian Oil Corp. Ltd.     16,201,694       23,741,007  
Indraprastha Gas Ltd.     1,833,742       11,241,175  
Info Edge India Ltd.     567,055       20,377,207  
Infosys Ltd.     30,017,148       304,341,250  
Inox Leisure Ltd.     451,050       2,680,331  
InterGlobe Aviation Ltd.(c)     886,749       15,974,199  
Ipca Laboratories Ltd.     372,249       7,022,014  
IRB Infrastructure Developers Ltd.(a)     1,594,476       1,855,904  
ITC Ltd.     29,787,195       81,538,925  
Jammu & Kashmir Bank Ltd. (The)(a)     2,330,025       637,655  
Jindal Steel & Power Ltd. (a)     3,754,854       8,007,372  
JM Financial Ltd.     2,022,870       2,962,793  
JSW Energy Ltd.     2,633,019       2,090,581  
JSW Steel Ltd.     7,543,211       24,636,226  
Jubilant Foodworks Ltd.     656,865       15,990,761  
Jubilant Life Sciences Ltd.     700,814       4,916,647  
Just Dial Ltd.(a)     384,031       2,480,297  
Jyothy Labs Ltd.     859,392       1,466,507  
Kajaria Ceramics Ltd.     600,779       4,365,934  
Karnataka Bank Ltd. (The)     1,789,981       1,726,299  
Karur Vysya Bank Ltd. (The)     3,499,439       2,026,903  
Kaveri Seed Co. Ltd.     291,865       1,733,375  
KEC International Ltd.     601,420       2,584,271  
KEI Industries Ltd.     385,766       2,621,931  
KPIT Technologies Ltd.(a)     1,535,395       1,739,267  
KRBL Ltd.     528,219       1,828,739  
L&T Technology Services Ltd. (c)     195,559       4,392,168  
Lakshmi Machine Works Ltd.     36,019       1,613,724  
Larsen & Toubro Ltd.     4,035,041       66,398,489  
Lemon Tree Hotels Ltd.(a)(c)     2,344,349       1,676,217  
LIC Housing Finance Ltd.     2,549,007       11,311,456  
Lupin Ltd.     1,892,753       16,785,422  
Mahanagar Gas Ltd.     424,839       5,918,047  
Mahindra & Mahindra Financial Services Ltd.     1,793,960       8,532,605  
Mahindra & Mahindra Ltd.     6,552,185       41,496,188  
Security   Shares     Value  
India (continued)                
Mahindra CIE Automotive Ltd.(a)     911,672     $ 1,676,362  
Manappuram Finance Ltd.     4,221,580       9,520,382  
Marico Ltd.     3,730,622       15,443,563  
Maruti Suzuki India Ltd.     915,650       79,718,994  
Max Financial Services Ltd.(a)     1,368,853       10,950,065  
Minda Industries Ltd.     605,485       3,130,307  
Mindtree Ltd.     635,382       8,311,229  
Motherson Sumi Systems Ltd.     8,415,320       12,086,437  
Motilal Oswal Financial Services Ltd.     337,259       3,479,491  
Mphasis Ltd.     796,181       9,615,292  
Natco Pharma Ltd.     796,486       6,640,189  
National Aluminium Co. Ltd.     6,965,156       3,233,211  
NBCC India Ltd.     5,225,120       1,911,431  
NCC Ltd./India     4,564,796       2,251,799  
Nestle India Ltd.     216,616       47,361,366  
NIIT Technologies Ltd.     187,121       4,381,303  
NTPC Ltd.     20,346,953       30,040,778  
Oberoi Realty Ltd.     520,062       3,674,862  
Oil & Natural Gas Corp. Ltd.     21,776,995       27,746,488  
Oil India Ltd.     2,214,470       3,313,995  
Page Industries Ltd.     47,056       14,440,146  
Persistent Systems Ltd.     367,763       3,548,830  
Petronet LNG Ltd.     5,078,288       17,282,399  
Pfizer Ltd.     98,581       5,729,152  
Phillips Carbon Black Ltd.     739,666       1,087,450  
Phoenix Mills Ltd. (The)     461,459       5,476,379  
PI Industries Ltd.     670,460       14,225,820  
Pidilite Industries Ltd.     1,119,966       23,481,769  
Piramal Enterprises Ltd.     830,105       15,028,561  
PNB Housing Finance Ltd.(c)     549,704       2,741,379  
Power Finance Corp. Ltd.     5,505,737       8,350,059  
Power Grid Corp. of India Ltd.     15,748,229       39,606,520  
Prestige Estates Projects Ltd.     1,088,635       4,379,883  
Procter & Gamble Health Ltd.(a)     38,126       2,209,108  
PTC India Ltd.     2,609,540       1,800,743  
PVR Ltd.     306,477       8,100,242  
Quess Corp. Ltd.(a)(c)     644,650       4,593,190  
Radico Khaitan Ltd.     596,940       3,394,661  
Rain Industries Ltd.     1,181,613       1,691,352  
Rajesh Exports Ltd.     685,296       6,250,207  
Rallis India Ltd.     1,076,052       3,339,202  
Ramco Cements Ltd. (The)     660,031       7,043,196  
Raymond Ltd.     311,913       2,182,429  
RBL Bank Ltd.(c)     2,970,299       11,972,979  
REC Ltd.     5,962,117       9,732,045  
Redington India Ltd.     2,739,911       4,174,361  
Reliance Industries Ltd.     24,957,385       459,481,478  
Repco Home Finance Ltd.     244,517       962,923  
Sadbhav Engineering Ltd.     886,550       866,065  
Sanofi India Ltd.     49,261       4,978,250  
SBI Life Insurance Co. Ltd.(c)     3,015,757       37,208,301  
Schaeffler India Ltd.     41,500       2,510,529  
Shree Cement Ltd.     72,973       22,923,993  
Shriram Transport Finance Co. Ltd.     1,211,919       20,089,635  
Siemens Ltd.     599,627       10,832,628  
Sobha Ltd.     498,346       2,050,906  
Sonata Software Ltd.     379,943       1,763,424  
SpiceJet Ltd.(a)     1,489,634       1,720,456  
SRF Ltd.     178,373       9,624,122  
State Bank of India(a)     15,608,979       65,535,326  

 


 

C o n s o l i d a t e d   S c h e d u l e   o f   I n v e s t m e n t s 17

 

 

 

 

 

Consolidated Schedule of Investments (unaudited) (continued) iShares® Core MSCI Emerging Markets ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
India (continued)                
Sterlite Technologies Ltd.     1,116,216     $ 1,422,192  
Strides Pharma Science Ltd.     438,619       2,857,474  
Sun Pharma Advanced Research Co. Ltd.(a)     840,266       1,699,336  
Sun Pharmaceutical Industries Ltd.     7,281,569       37,624,929  
Sundaram Finance Ltd.     255,734       5,594,840  
Sundram Fasteners Ltd.     488,871       2,812,952  
Sunteck Realty Ltd.     489,764       2,349,822  
Supreme Industries Ltd.     339,855       6,212,446  
Symphony Ltd.     133,700       2,353,772  
Syngene International Ltd.(c)     884,582       3,682,107  
Tata Chemicals Ltd.     735,767       7,279,421  
Tata Communications Ltd.     692,652       3,463,860  
Tata Consultancy Services Ltd.     7,967,311       220,817,087  
Tata Consumer Products Ltd.     2,756,202       13,220,069  
Tata Elxsi Ltd.     203,577       2,490,146  
Tata Motors Ltd.(a)     14,237,231       25,439,304  
Tata Power Co. Ltd. (The)     11,053,898       7,153,040  
Tata Steel Ltd.     3,140,593       16,613,037  
TeamLease Services Ltd.(a)     94,835       3,051,264  
Tech Mahindra Ltd.     4,108,645       42,380,231  
Thermax Ltd.     277,290       3,545,493  
Titan Co. Ltd.     2,945,547       51,202,948  
Torrent Power Ltd.     1,281,567       5,379,856  
TTK Prestige Ltd.     61,536       4,857,437  
Tube Investments of India Ltd.     906,598       6,632,955  
TV18 Broadcast Ltd.(a)     7,262,022       2,269,146  
UltraTech Cement Ltd.     866,928       50,688,875  
United Spirits Ltd.(a)     2,500,105       23,777,283  
UPL Ltd.     4,646,520       33,460,996  
Varun Beverages Ltd.     610,722       6,880,910  
Vedanta Ltd.     16,697,823       26,376,857  
Venky’s India Ltd.     52,476       891,185  
V-Guard Industries Ltd.     1,059,999       2,980,937  
Vinati Organics Ltd.     225,632       2,938,132  
VIP Industries Ltd.     311,257       1,767,675  
V-Mart Retail Ltd.     79,578       2,459,593  
Vodafone Idea Ltd.(a)     89,505,853       4,774,968  
Voltas Ltd.     944,908       8,887,052  
WABCO India Ltd.     38,416       3,604,479  
Welspun India Ltd.     3,246,141       1,857,701  
Westlife Development Ltd.(a)     333,416       2,076,934  
Wipro Ltd.     9,744,606       29,901,867  
Wockhardt Ltd.(a)     391,365       1,666,762  
Yes Bank Ltd.     16,868,423       8,087,400  
Zee Entertainment Enterprises Ltd.     7,305,163       24,223,168  
Zensar Technologies Ltd.     528,480       1,000,683  
              5,159,965,975  
Indonesia — 1.8%                
Ace Hardware Indonesia Tbk PT     77,872,200       8,222,783  
Adaro Energy Tbk PT     129,704,200       10,441,425  
Adhi Karya Persero Tbk PT     19,877,300       1,045,991  
AKR Corporindo Tbk PT     18,980,200       3,505,665  
Alam Sutera Realty Tbk PT(a)     137,577,000       1,457,516  
Alfa Energi Investama Tbk PT(a)     9,318,600       61,702  
Aneka Tambang Tbk     84,875,443       3,401,525  
Astra International Tbk PT     174,745,300       67,291,708  
Bank Central Asia Tbk PT     88,321,300       193,602,013  
Bank Mandiri Persero Tbk PT     162,289,900       82,290,226  
Bank Negara Indonesia Persero Tbk PT     64,722,100       31,690,033  
Security   Shares     Value  
Indonesia (continued)                
Bank Pembangunan Daerah Jawa Barat Dan                
Banten Tbk PT.     25,681,700     $ 1,593,080  
Bank Rakyat Indonesia Persero Tbk PT     502,085,500       146,627,513  
Bank Tabungan Negara Persero Tbk PT     39,494,876       4,679,651  
Barito Pacific Tbk PT(a)     239,785,900       16,462,040  
Bukit Asam Tbk PT     33,321,900       5,202,374  
Bumi Resources Tbk PT(a)     495,009,100       1,725,071  
Bumi Serpong Damai Tbk PT(a)     76,652,500       5,342,568  
Charoen Pokphand Indonesia Tbk PT     65,829,500       26,152,859  
Ciputra Development Tbk PT     97,015,627       6,389,947  
Gudang Garam Tbk PT     4,166,800       14,811,417  
Hanjaya Mandala Sampoerna Tbk PT     78,180,600       9,263,427  
Hanson International Tbk PT(a)(d)     787,265,600       2,261,794  
Indah Kiat Pulp & Paper Corp. Tbk PT     24,917,500       9,769,015  
Indika Energy Tbk PT     21,932,500       1,146,498  
Indocement Tunggal Prakarsa Tbk PT     16,305,600       16,961,915  
Indofood CBP Sukses Makmur Tbk PT     20,483,300       14,669,169  
Indofood Sukses Makmur Tbk PT     38,266,700       17,336,369  
Inti Agri Resources Tbk PT(a)(d)     291,349,000       843,739  
Japfa Comfeed Indonesia Tbk PT     35,195,200       3,434,276  
Jasa Marga Persero Tbk PT     21,244,680       6,929,786  
Kalbe Farma Tbk PT.     179,803,400       15,289,085  
Krakatau Steel Persero Tbk PT(a)     70,304,914       1,127,035  
Kresna Graha Investama Tbk PT(a)     129,450,900       4,258,639  
Link Net Tbk PT     15,323,700       3,727,459  
Matahari Department Store Tbk PT     21,988,300       4,812,216  
Medco Energi Internasional Tbk PT(a)     68,005,900       2,986,145  
Media Nusantara Citra Tbk PT     51,744,100       4,634,338  
Mitra Adiperkasa Tbk PT     101,414,900       5,654,778  
Pabrik Kertas Tjiwi Kimia Tbk PT     12,896,700       5,393,288  
Pakuwon Jati Tbk PT     167,485,600       6,186,957  
Panin Financial Tbk PT(a)     176,161,400       3,094,105  
Perusahaan Gas Negara Tbk PT     96,497,100       8,608,907  
Perusahaan Perkebunan London Sumatra  Indonesia Tbk PT     34,909,100       2,360,120  
Pool Advista Indonesia Tbk PT(a)     13,195,900       45,987  
PP Persero Tbk PT     31,958,750       2,684,112  
PP Properti Tbk PT     201,194,600       715,172  
Ramayana Lestari Sentosa Tbk PT     33,562,700       2,421,146  
Sawit Sumbermas Sarana Tbk PT     51,654,900       2,916,220  
Semen Indonesia Persero Tbk PT     26,106,300       19,060,010  
Sentul City Tbk PT(a)     175,746,900       612,465  
Sugih Energy Tbk PT(a)(d)     27,492,211       7,665  
Summarecon Agung Tbk PT     87,136,300       5,101,550  
Surya Citra Media Tbk PT     64,787,900       5,057,498  
Telekomunikasi Indonesia Persero Tbk PT     431,992,200       105,081,218  
Timah Tbk PT     38,077,752       1,526,029  
Tower Bersama Infrastructure Tbk PT.     91,314,400       7,032,752  
Trada Alam Minera Tbk PT(a)(d)     280,960,700       813,655  
Unilever Indonesia Tbk PT     64,697,600       30,776,172  
United Tractors Tbk PT     14,893,700       17,231,951  
Waskita Beton Precast Tbk PT     118,722,700       1,539,113  
Waskita Karya Persero Tbk PT     46,970,900       3,191,959  
Wijaya Karya Persero Tbk PT     31,910,823       4,170,259  
              992,731,100  
Malaysia — 1.9%                
Aeon Co. M Bhd     5,146,800       1,685,073  
AEON Credit Service M Bhd(b)     2,374,600       7,774,491  
AirAsia Group Bhd     14,201,300       3,369,229  
Alliance Bank Malaysia Bhd(b)     9,474,700       5,192,540  

 


 

18 2 0 2 0   i  S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

 

 

Consolidated Schedule of Investments (unaudited) (continued) iShares® Core MSCI Emerging Markets ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Malaysia (continued)                
AMMB Holdings Bhd     14,529,800     $ 12,754,510  
Axiata Group Bhd     24,305,900       24,104,072  
Berjaya Corp. Bhd(a)(b)     44,034,606       2,246,131  
Berjaya Sports Toto Bhd     6,425,873       3,826,558  
Bermaz Auto Bhd     7,876,100       3,326,087  
British American Tobacco Malaysia Bhd     1,344,400       3,967,814  
Bursa Malaysia Bhd     5,269,500       6,888,480  
Cahya Mata Sarawak Bhd(b)     5,772,000       2,615,544  
Carlsberg Brewery Malaysia Bhd     1,750,400       13,222,476  
CIMB Group Holdings Bhd     41,478,900       47,432,574  
Dialog Group Bhd     33,701,696       26,705,496  
DiGi.Com Bhd     26,276,100       25,933,233  
DRB-Hicom Bhd(b)     8,459,400       4,455,485  
FGV Holdings Bhd(a)     16,589,000       4,486,705  
Fraser & Neave Holdings Bhd     1,215,400       8,858,147  
Gamuda Bhd     15,339,500       12,045,966  
Genting Bhd     18,788,000       22,064,199  
Genting Malaysia Bhd     26,355,400       18,070,488  
Genting Plantations Bhd(b)     3,407,300       8,099,916  
Globetronics Technology Bhd     6,617,000       3,265,329  
HAP Seng Consolidated Bhd     5,574,000       11,848,883  
Hartalega Holdings Bhd     13,014,200       19,143,070  
Hibiscus Petroleum Bhd(a)     16,623,200       2,957,865  
Hong Leong Bank Bhd     5,410,000       19,637,722  
Hong Leong Financial Group Bhd     1,934,700       7,022,754  
IGB REIT     7,947,300       3,695,542  
IHH Healthcare Bhd     19,291,200       26,087,744  
IJM Corp. Bhd     23,915,000       11,007,141  
Inari Amertron Bhd(b)     22,746,600       7,609,183  
IOI Corp. Bhd     15,408,900       15,244,392  
Kossan Rubber Industries     5,824,800       6,633,224  
KPJ Healthcare Bhd(b)     28,519,900       6,563,298  
Kuala Lumpur Kepong Bhd     3,566,600       18,480,319  
Magnum Bhd(b)     8,437,200       4,824,117  
Mah Sing Group Bhd(b)     15,355,323       2,459,037  
Malayan Banking Bhd     32,555,800       65,034,362  
Malaysia Airports Holdings Bhd     8,470,700       13,243,633  
Malaysia Building Society Bhd(b)     14,522,900       2,653,056  
Malaysian Pacific Industries Bhd(b)     881,300       2,283,226  
Malaysian Resources Corp. Bhd(b)     20,966,900       2,835,381  
Maxis Bhd(b)     20,379,500       26,254,018  
MISC Bhd     10,661,100       19,197,568  
My EG Services Bhd(b)     19,607,800       5,210,139  
Nestle Malaysia Bhd     578,600       19,629,846  
Padini Holdings Bhd(b)     3,657,800       2,620,772  
Pavilion REIT     12,603,400       5,382,235  
Petronas Chemicals Group Bhd     20,979,000       26,877,011  
Petronas Dagangan Bhd     1,982,300       10,741,573  
Petronas Gas Bhd     5,859,100       23,102,786  
Pos Malaysia Bhd(b)     4,993,500       1,350,555  
PPB Group Bhd     5,492,820       23,587,199  
Press Metal Aluminium Holdings Bhd     12,822,600       14,176,350  
Public Bank Bhd     26,793,260       108,698,635  
QL Resources Bhd     6,679,995       12,932,090  
RHB Bank Bhd     13,096,666       17,244,720  
RHB Capital Bhd(a)(d)     1,769,000       4  
Sapura Energy Bhd(b)     77,402,400       3,397,258  
Scientex Bhd     2,150,500       4,591,815  
Serba Dinamik Holdings Bhd     14,752,320       7,699,906  
Sime Darby Bhd     23,941,000       11,359,905  
Security   Shares     Value  
Malaysia (continued)                
Sime Darby Plantation Bhd     18,317,400     $ 21,554,995  
Sime Darby Property Bhd     25,741,000       4,732,924  
SKP Resources Bhd(b)     8,398,500       2,650,060  
SP Setia Bhd Group     14,904,900       4,490,919  
Sunway Bhd     19,631,386       8,243,785  
Sunway Construction Group Bhd(b)     6,721,770       2,982,138  
Sunway REIT(b)     18,867,700       8,505,013  
Supermax Corp. Bhd     8,514,812       3,211,993  
Telekom Malaysia Bhd     10,031,000       8,805,386  
Tenaga Nasional Bhd     26,853,300       77,087,765  
TIME dotCom Bhd     4,890,400       10,825,014  
Top Glove Corp. Bhd     13,289,500       17,782,391  
UEM Sunrise Bhd(a)(b)     16,273,800       2,277,946  
UMW Holdings Bhd(b)     2,782,800       2,086,275  
ViTrox Corp. Bhd     1,762,800       3,513,053  
VS Industry Bhd     14,562,375       4,422,263  
WCT Holdings Bhd(a)     10,452,954       1,611,962  
Westports Holdings Bhd     7,900,000       6,447,450  
Yinson Holdings Bhd(b)     5,124,800       8,693,314  
YTL Corp. Bhd     27,407,166       5,494,438  
              1,071,127,961  
Mexico — 2.3%                
Alfa SAB de CV, Class A     26,171,647       16,617,968  
Alsea SAB de CV(a)     4,837,295       9,754,493  
America Movil SAB de CV, Series L, NVS     293,424,572       230,038,106  
Arca Continental SAB de CV     3,591,138       19,589,675  
Banco del Bajio SA(c)     6,433,397       9,976,778  
Bolsa Mexicana de Valores SAB de CV(b)     4,016,378       8,435,885  
Cemex SAB de CV, CPO, NVS     132,345,783       42,384,879  
Coca-Cola Femsa SAB de CV(b)     4,466,400       24,587,592  
Concentradora Hipotecaria SAPI de CV(b)     2,751,181       2,555,715  
Consorcio ARA SAB de CV     12,307,234       2,219,424  
Controladora Vuela Cia. de Aviacion SAB de CV, Class A(a)     6,802,859       6,893,408  
Corp Inmobiliaria Vesta SAB de CV     5,344,800       8,431,698  
Credito Real SAB de CV SOFOM ER     1,638,000       1,736,753  
El Puerto de Liverpool SAB de CV,                
Series C1, NVS(b)     1,603,105       7,434,702  
Fibra Uno Administracion SA de CV     28,049,800       41,926,279  
Fomento Economico Mexicano SAB de CV     16,699,345       134,301,655  
Genomma Lab Internacional SAB de CV, Class B(a)(b)     6,475,924       6,516,324  
Gentera SAB de CV     8,814,692       8,411,059  
Gruma SAB de CV, Series B     1,775,070       16,952,226  
Grupo Aeromexico SAB de CV(a)     4,211,982       2,523,381  
Grupo Aeroportuario del Centro Norte SAB de CV     3,003,900       19,615,293  
Grupo Aeroportuario del Pacifico SAB de CV, Series B     3,183,400       34,357,853  
Grupo Aeroportuario del Sureste SAB de CV, Class B     1,854,835       30,440,600  
Grupo Bimbo SAB de CV, Series A     14,135,102       21,199,261  
Grupo Carso SAB de CV, Series A1     4,204,136       11,474,224  
Grupo Cementos de Chihuahua SAB de CV(b)     1,488,357       7,366,414  
Grupo Comercial Chedraui SA de CV     3,801,059       4,863,528  
Grupo Financiero Banorte SAB de CV, Class O     22,706,778       122,317,117  
Grupo Financiero Inbursa SAB de CV, Class O     20,296,542       21,653,473  
Grupo Herdez SAB de CV(b)     2,785,600       4,989,638  
Grupo Mexico SAB de CV, Series B     30,830,720       72,293,689  
Grupo Televisa SAB, CPO     21,179,156       39,402,335  
Hoteles City Express SAB de CV(a)(b)     3,756,044       2,305,253  

 


 

C o n s o l i d a t e d   S c h e d u l e   o f   I n v e s t m e n t s 19

 

 

 

 

 

Consolidated Schedule of Investments (unaudited) (continued) iShares® Core MSCI Emerging Markets ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Mexico (continued)                
Industrias Penoles SAB de CV     1,246,425     $ 11,171,957  
Infraestructura Energetica Nova SAB de CV     4,719,471       20,411,745  
Kimberly-Clark de Mexico SAB de CV, Class A     13,159,075       24,774,012  
La Comer SAB de CV(a)(b)     5,502,896       6,487,894  
Macquarie Mexico Real Estate Management SA de CV(c)     7,683,000       10,137,143  
Megacable Holdings SAB de CV, CPO     2,555,477       8,506,854  
Orbia Advance Corp. SAB de CV     9,335,183       18,150,238  
PLA Administradora Industrial S. de RL de CV     7,299,649       10,929,285  
Prologis Property Mexico SA de CV     2,650,345       5,566,709  
Promotora y Operadora de Infraestructura SAB de CV(b)     2,024,215       19,645,515  
Qualitas Controladora SAB de CV     2,336,378       9,945,524  
Regional SAB de CV     2,130,847       11,778,778  
Telesites SAB de CV(a)(b)     14,342,495       10,744,283  
Unifin Financiera SAB de CV(b)     585,694       924,850  
Wal-Mart de Mexico SAB de CV     45,453,396       126,740,962  
              1,289,482,427  
Pakistan — 0.1%                
Engro Corp. Ltd./Pakistan     3,324,759       6,677,483  
Engro Fertilizers Ltd.     6,132,847       2,510,200  
Fauji Fertilizer Co. Ltd.     5,842,140       3,914,542  
Habib Bank Ltd.     5,029,216       5,101,943  
Hub Power Co. Ltd. (The)(a)     7,195,979       4,205,705  
Lucky Cement Ltd.     1,176,129       3,721,866  
MCB Bank Ltd.     3,793,700       4,809,534  
National Bank of Pakistan(a)     5,096,314       1,295,553  
Nishat Mills Ltd.     2,093,800       1,383,042  
Oil & Gas Development Co. Ltd.     5,666,800       4,312,568  
Pakistan Oilfields Ltd.     1,354,570       3,235,613  
Pakistan State Oil Co. Ltd.     2,404,885       2,565,387  
Searle Co. Ltd. (The)     1,044,775       1,182,711  
United Bank Ltd./Pakistan     4,460,200       4,791,349  
              49,707,496  
Peru — 0.3%                
Cia. de Minas Buenaventura SAA, ADR     1,822,375       20,319,481  
Credicorp Ltd.     586,738       106,357,997  
Southern Copper Corp.     746,330       25,114,005  
              151,791,483  
Philippines — 0.9%                
Aboitiz Equity Ventures Inc.     17,920,630       14,993,916  
Aboitiz Power Corp.     11,808,200       6,370,289  
Alliance Global Group Inc.(a)     34,139,800       6,724,151  
Altus San Nicolas Corp.     409,331       41,707  
Ayala Corp.     2,346,895       30,501,578  
Ayala Land Inc.     66,139,240       50,601,871  
Bank of the Philippine Islands     7,623,523       11,081,963  
BDO Unibank Inc.     17,199,976       46,901,357  
Bloomberry Resorts Corp.     36,185,800       5,785,469  
Cebu Air Inc.     2,826,890       4,078,818  
Cosco Capital Inc.     30,898,600       3,782,389  
D&L Industries Inc.     32,557,300       4,611,353  
DoubleDragon Properties Corp.(a)     6,725,700       2,242,999  
Filinvest Land Inc.     111,503,000       2,690,509  
First Gen Corp.     12,824,700       4,614,125  
Globe Telecom Inc.     297,990       10,399,690  
GT Capital Holdings Inc.     842,370       11,749,388  
International Container Terminal Services Inc.     8,916,780       18,542,004  
JG Summit Holdings Inc.     25,991,733       34,417,694  
Security   Shares     Value  
Philippines (continued)                
Jollibee Foods Corp.     3,810,860     $ 12,709,097  
MacroAsia Corp.     4,775,900       787,005  
Manila Electric Co.     1,754,900       9,288,318  
Manila Water Co. Inc.     12,521,200       2,888,657  
Megawide Construction Corp.     6,349,700       1,576,993  
Megaworld Corp     94,185,200       6,282,093  
Metro Pacific Investments Corp     125,722,800       7,571,731  
Metropolitan Bank & Trust Co..     15,150,153       16,658,481  
Petron Corp.     16,635,500       1,096,523  
Pilipinas Shell Petroleum Corp.     2,001,100       1,022,632  
PLDT Inc.     767,430       14,904,477  
Robinsons Land Corp     20,176,413       8,430,752  
Security Bank Corp.     2,142,780       6,490,343  
Semirara Mining & Power Corp.     8,408,200       3,199,982  
SM Investments Corp.     2,069,577       39,564,547  
SM Prime Holdings Inc.     87,977,096       66,101,477  
Universal Robina Corp     7,689,360       21,314,499  
Vista Land & Lifescapes Inc.     46,244,400       5,697,201  
Wilcon Depot Inc.     12,089,400       4,292,656  
              500,008,734  
Poland — 0.8%                
Alior Bank SA(a)     889,254       4,736,433  
Asseco Poland SA     520,512       8,013,564  
Bank Millennium SA(a)     5,560,238       6,805,922  
Bank Polska Kasa Opieki SA     1,440,093       32,157,097  
Budimex SA     120,934       5,343,217  
CCC SA(b)     263,847       4,814,922  
CD Projekt SA.     643,420       45,449,177  
Ciech SA(a)(b)     303,972       2,698,410  
Cyfrowy Polsat SA     2,196,227       14,037,315  
Dino Polska SA(a)(c)     470,201       16,910,874  
Enea SA(a)(b)     2,143,482       3,044,487  
Energa SA(a)     2,083,308       3,709,342  
Eurocash SA(b)     789,040       3,626,298  
Famur SA     1,397,208       917,840  
Grupa Azoty SA(a)(b)     452,559       2,334,707  
Grupa Lotos SA     815,016       12,291,286  
Jastrzebska Spolka Weglowa SA(b)     668,464       2,293,940  
KGHM Polska Miedz SA(a)     1,248,023       22,328,745  
KRUK SA(b)     142,508       4,987,979  
LPP SA     11,243       19,676,034  
Lubelski Wegiel Bogdanka SA(b)     180,688       754,337  
mBank SA(a)     131,277       9,922,273  
Orange Polska SA(a)     5,821,915       9,110,816  
PGE Polska Grupa Energetyczna SA(a)     7,515,933       8,521,120  
PLAY Communications SA(c)     1,020,848       7,917,806  
Polski Koncern Naftowy ORLEN SA     2,613,596       38,872,161  
Polskie Gornictwo Naftowe i Gazownictwo SA.     15,689,255       12,606,478  
Powszechna Kasa Oszczednosci Bank Polski SA     7,570,953       60,084,490  
Powszechny Zaklad Ubezpieczen SA     5,185,515       45,703,869  
Santander Bank Polska SA     309,690       19,699,762  
Tauron Polska Energia SA(a)(b)     10,727,808       2,993,022  
Warsaw Stock Exchange     328,335       3,164,514  
              435,528,237  
Qatar — 0.9%                
Al Meera Consumer Goods Co. QSC     1,050,565       4,442,681  
Barwa Real Estate Co.     15,153,710       12,816,550  
Commercial Bank PSQC (The)     18,043,133       22,275,169  
Doha Bank QPSC     13,434,516       8,503,554  

 


 

20 2 0 2 0   i  S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

 

 

Consolidated Schedule of Investments (unaudited) (continued) iShares® Core MSCI Emerging Markets ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Qatar (continued)                
Gulf International Services QSC(a)     9,270,384     $ 3,262,706  
Industries Qatar QSC     15,914,330       39,033,592  
Masraf Al Rayan QSC     32,731,219       36,345,200  
Medicare Group     1,333,966       2,401,306  
Mesaieed Petrochemical Holding Co.     39,425,301       19,038,764  
Ooredoo QPSC     7,239,235       12,490,362  
Qatar Aluminum Manufacturing Co.     27,226,649       4,553,498  
Qatar Electricity & Water Co. QSC     4,764,688       19,564,171  
Qatar Fuel QSC     4,218,000       22,210,297  
Qatar Gas Transport Co. Ltd.     23,540,711       14,065,467  
Qatar Insurance Co. SAQ     14,972,294       11,029,164  
Qatar International Islamic Bank QSC     6,089,816       14,122,565  
Qatar Islamic Bank SAQ     10,432,821       44,403,461  
Qatar National Bank QPSC     39,392,678       202,482,212  
Qatar National Cement Co. QSC     2,092,529       2,377,809  
Qatar Navigation QSC     2,817,134       4,311,822  
United Development Co. QSC     17,687,944       5,834,372  
Vodafone Qatar QSC     18,004,097       5,074,136  
              510,638,858  
Russia — 3.3%                
Aeroflot PJSC     5,401,857       7,470,961  
Alrosa PJSC     21,836,140       23,197,649  
Credit Bank of Moscow PJSC     58,195,531       4,892,928  
Detsky Mir PJSC(c)     2,789,921       4,641,565  
Gazprom PJSC     84,840,000       255,845,625  
Gazprom PJSC, ADR     4,419,691       26,650,737  
Inter RAO UES PJSC     326,265,681       25,266,170  
LSR Group PJSC, GDR(f)     2,443,492       5,583,379  
LUKOIL PJSC     3,678,569       311,994,107  
M.Video PJSC     1,261,962       9,091,009  
Magnit PJSC, GDR(f)     3,135,458       34,145,138  
Magnitogorsk Iron & Steel Works PJSC     22,691,295       13,501,658  
Mechel PJSC, ADR(a)     1,059,117       2,478,334  
MMC Norilsk Nickel PJSC     570,315       171,858,315  
Mobile TeleSystems PJSC, ADR     4,384,195       42,526,691  
Moscow Exchange MICEX-RTS PJSC     11,135,951       16,418,899  
Novatek PJSC, GDR(f)     801,759       114,892,065  
Novolipetsk Steel PJSC     10,583,208       19,676,577  
PhosAgro PJSC, GDR(f)     1,023,247       11,265,949  
Polymetal International PLC     1,506,637       22,982,940  
Polyus PJSC     241,528       30,421,027  
Rosneft Oil Co. PJSC     1,867,320       11,209,478  
Rosneft Oil Co. PJSC, GDR(f)     8,470,420       51,246,041  
Rostelecom PJSC(a)     5,447,951       7,027,208  
Safmar Financial Investment     522,326       3,957,863  
Sberbank of Russia PJSC     94,898,980       329,548,006  
Severstal PJSC     1,891,901       22,933,669  
Sistema PJSFC, GDR(f)     1,413,455       6,414,259  
Surgutneftegas PJSC     63,718,232       36,443,605  
Tatneft PJSC     13,437,977       134,299,782  
Unipro PJSC     118,466,082       5,267,510  
VTB Bank PJSC     5,234,790,000       3,375,349  
VTB Bank PJSC, GDR(f)     11,664,688       14,825,818  
X5 Retail Group NV, GDR(f)     1,089,129       33,557,167  
              1,814,907,478  
Saudi Arabia — 2.6%                
Abdullah Al Othaim Markets Co.     405,877       8,947,362  
Advanced Petrochemical Co.     1,001,629       11,974,693  
Al Hammadi Co. for Development and Investment(a)     706,252       4,488,084  
Security   Shares     Value  
Saudi Arabia (continued)                
Al Rajhi Bank     10,660,444     $ 175,898,036  
Aldrees Petroleum and Transport Services Co.     286,391       4,572,790  
Alinma Bank     6,612,043       40,995,900  
Almarai Co. JSC     2,297,421       28,047,949  
Arab National Bank     5,077,004       34,239,158  
Arabian Cement Co./Saudi Arabia     490,775       4,408,668  
Arriyadh Development Co.     1,097,834       4,781,716  
Bank AlBilad     3,277,962       20,935,618  
Bank Al-Jazira     3,714,473       13,782,611  
Banque Saudi Fransi     4,839,814       43,927,940  
Bupa Arabia for Cooperative Insurance Co.     257,036       6,646,006  
City Cement Co.     1,044,426       4,743,974  
Co for Cooperative Insurance (The)(a)     560,432       10,277,948  
Dallah Healthcare Co.     305,212       4,173,631  
Dar Al Arkan Real Estate Development Co.(a)     4,761,601       11,892,897  
Eastern Province Cement Co.     459,227       4,247,681  
Emaar Economic City(a)     3,703,248       9,140,897  
Etihad Etisalat Co.(a)     3,474,804       21,248,035  
Fawaz Abdulaziz Al Hokair & Co.(a)     745,982       5,617,484  
Herfy Food Services Co.     231,480       2,912,397  
Jarir Marketing Co.     519,377       21,015,975  
Leejam Sports Co. JSC     202,719       4,014,933  
Mobile Telecommunications Co.(a)     2,675,038       7,216,149  
Mouwasat Medical Services Co.     447,925       10,375,765  
National Agriculture Development Co. (The)(a)     507,090       3,487,384  
National Commercial Bank     10,568,939       124,804,478  
National Industrialization Co.(a)     3,211,646       10,084,817  
National Medical Care Co.     214,836       2,714,441  
Qassim Cement Co. (The)     443,106       8,031,776  
Rabigh Refining & Petrochemical Co.(a)     2,104,565       8,807,589  
Riyad Bank     10,570,854       61,765,459  
Sahara International Petrochemical Co..     3,331,994       13,855,553  
Samba Financial Group     8,725,190       62,447,381  
Saudi Airlines Catering Co.     388,472       9,443,862  
Saudi Arabian Fertilizer Co.     1,505,956       26,975,941  
Saudi Arabian Mining Co.(a)     3,788,236       38,473,089  
Saudi Arabian Oil Co.(a)(c)     9,498,557       84,440,058  
Saudi Basic Industries Corp     6,596,186       138,376,606  
Saudi British Bank (The)     6,275,569       47,173,410  
Saudi Cement Co.     682,183       11,092,406  
Saudi Electricity Co.     7,425,157       33,251,403  
Saudi Industrial Investment Group     2,110,003       11,856,288  
Saudi Kayan Petrochemical Co.(a)     6,946,339       16,405,321  
Saudi Pharmaceutical Industries & Medical                
Appliances Corp.     639,480       4,772,875  
Saudi Research & Marketing Group(a)     345,540       6,419,869  
Saudi Telecom Co.     3,522,228       77,551,921  
Saudia Dairy & Foodstuff Co.     152,246       5,608,529  
Savola Group (The)(a)     2,384,602       21,262,145  
Seera Group Holding     1,579,618       8,337,048  
Southern Province Cement Co.     576,995       9,182,088  
United Electronics Co.     224,317       4,693,825  
United International Transportation Co.     366,013       3,390,364  
Yamama Cement Co.(a)     1,036,648       6,609,788  
Yanbu Cement Co.     734,251       7,222,141  
Yanbu National Petrochemical Co.     2,081,003       27,458,256  
              1,416,520,408  
South Africa — 4.2%                
Absa Group Ltd.     6,239,190       52,470,828  
Adcock Ingram Holdings Ltd.     649,372       1,656,504  

 


 

C o n s o l i d a t e d   S c h e d u l e   o f   I n v e s t m e n t s 21

 

 

 

 

 

Consolidated Schedule of Investments (unaudited) (continued) iShares® Core MSCI Emerging Markets ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
South Africa (continued)                
Advtech Ltd.     6,238,171     $ 3,671,962  
AECI Ltd.     1,150,448       7,620,900  
African Rainbow Minerals Ltd.     1,035,146       8,981,157  
Alexander Forbes Group Holdings Ltd.     6,046,249       1,802,556  
Anglo American Platinum Ltd.     499,199       33,234,662  
AngloGold Ashanti Ltd.     3,562,200       62,897,517  
Aspen Pharmacare Holdings Ltd.(a)     3,431,606       21,813,597  
Astral Foods Ltd.     386,806       4,615,166  
Attacq Ltd.     6,199,716       3,645,385  
AVI Ltd.     2,846,918       13,210,756  
Barloworld Ltd.     1,858,521       9,575,255  
Bid Corp. Ltd.     2,931,616       51,830,427  
Bidvest Group Ltd. (The)     2,457,975       28,124,178  
Brait SE(a)(b)     9,103,897       3,761,582  
Capitec Bank Holdings Ltd.     400,127       33,064,940  
Cashbuild Ltd.(b)     239,056       2,461,753  
City Lodge Hotels Ltd.(b)     435,122       1,352,539  
Clicks Group Ltd.     2,286,546       34,229,513  
Coronation Fund Managers Ltd.     2,085,155       5,213,053  
Curro Holdings Ltd.(b)     1,300,290       943,096  
DataTec Ltd.     1,736,470       3,377,681  
Dis-Chem Pharmacies Ltd.(b)(c)     3,203,875       4,403,126  
Discovery Ltd.     3,504,034       21,449,860  
Emira Property Fund Ltd.     5,693,913       4,260,074  
Equites Property Fund Ltd.     3,873,476       4,252,292  
Exxaro Resources Ltd.     2,216,989       15,783,795  
Famous Brands Ltd.     901,935       3,073,052  
FirstRand Ltd.     28,987,311       101,565,686  
Fortress REIT Ltd., Series A     11,033,604       11,327,127  
Foschini Group Ltd. (The)     2,028,920       16,086,654  
Gold Fields Ltd.     7,349,780       43,085,320  
Grindrod Ltd.     5,374,083       1,451,855  
Growthpoint Properties Ltd.     25,763,286       28,823,306  
Harmony Gold Mining Co. Ltd.(a)     4,167,936       14,717,531  
Hosken Consolidated Investments Ltd.     725,888       3,358,238  
Hudaco Industries Ltd.     513,773       3,122,841  
Hyprop Investments Ltd.     2,437,573       6,915,353  
Impala Platinum Holdings Ltd.(a)     7,004,008       55,496,907  
Imperial Logistics Ltd.     1,500,133       4,336,907  
Investec Ltd.     2,570,171       12,885,573  
JSE Ltd.     823,844       5,236,907  
KAP Industrial Holdings Ltd.     24,146,622       4,481,972  
Kumba Iron Ore Ltd.     573,004       10,223,121  
Liberty Holdings Ltd.     1,080,369       6,435,583  
Life Healthcare Group Holdings Ltd.     12,126,689       17,190,043  
Massmart Holdings Ltd.(b)     1,103,953       3,140,317  
Momentum Metropolitan Holdings     7,864,630       8,898,733  
Motus Holdings Ltd.     1,481,312       6,873,838  
Mr. Price Group Ltd.     2,257,420       21,663,713  
MTN Group Ltd.(b)     14,878,783       69,705,133  
MultiChoice Group Ltd.(a)     4,087,681       23,494,779  
Murray & Roberts Holdings Ltd.     3,711,094       2,165,581  
Nampak Ltd.(a)     6,491,888       1,361,805  
Naspers Ltd., Class N     3,863,053       584,667,540  
Nedbank Group Ltd.     3,193,187       35,848,378  
NEPI Rockcastle PLC     3,374,013       24,450,147  
Netcare Ltd.     10,666,920       12,408,520  
Northam Platinum Ltd.(a)     3,260,736       23,050,977  
Oceana Group Ltd.     772,514       2,686,108  
Old Mutual Ltd.     42,342,323       42,149,876  
Security   Shares     Value  
South Africa (continued)                
Omnia Holdings Ltd.(a)(b)     1,742,810     $ 2,770,726  
Pepkor Holdings Ltd.(c)     6,254,206       6,106,513  
Pick n Pay Stores Ltd.     3,214,568       11,287,718  
Pioneer Foods Group Ltd.     1,079,784       7,479,520  
PPC Ltd.(a)     15,867,940       1,492,836  
PSG Group Ltd.     1,315,439       15,603,148  
Rand Merchant Investment Holdings Ltd.     7,035,417       11,122,323  
Redefine Properties Ltd.     47,684,885       16,459,265  
Reinet Investments SCA     1,301,340       26,667,068  
Remgro Ltd.     4,562,052       46,399,156  
Resilient REIT Ltd.(b)     2,568,415       9,389,413  
Reunert Ltd.     1,707,817       6,018,585  
RMB Holdings Ltd.     6,846,295       30,489,872  
Royal Bafokeng Platinum Ltd.(a)     1,109,851       3,526,774  
SA Corporate Real Estate Ltd.     21,618,952       2,858,432  
Sanlam Ltd.     16,188,322       66,866,933  
Sappi Ltd.(a)     5,121,891       9,500,479  
Sasol Ltd.     4,977,049       58,814,062  
Shoprite Holdings Ltd.     4,127,800       29,419,250  
Sibanye Stillwater Ltd.(a)(b)     20,456,782       40,922,667  
SPAR Group Ltd. (The)     1,626,201       16,953,054  
Standard Bank Group Ltd.     11,192,914       105,657,294  
Steinhoff International Holdings NV(a)(b)     36,479,269       3,107,283  
Sun International Ltd./South Africa(a)     1,119,597       2,241,827  
Super Group Ltd./South Africa(a)     3,481,703       4,716,339  
Telkom SA SOC Ltd.     2,888,016       4,787,812  
Tiger Brands Ltd.     1,421,392       13,680,384  
Tongaat Hulett Ltd.(a)     56,414       11,619  
Truworths International Ltd.     3,933,286       11,233,674  
Tsogo Sun Gaming Ltd.     4,849,716       2,826,933  
Tsogo Sun Hotels Ltd.(a)     4,846,189       927,250  
Vodacom Group Ltd.     5,565,094       38,796,291  
Vukile Property Fund Ltd.     6,469,290       6,028,655  
Wilson Bayly Holmes-Ovcon Ltd.     523,207       3,285,280  
Woolworths Holdings Ltd.     8,680,459       19,726,435  
Zeder Investments Ltd.     13,428,694       3,619,341  
              2,292,877,786  
South Korea — 11.0%                
ABLBio Inc.(a)(b)     233,885       3,341,214  
Advanced Process Systems Corp.(a)     116,299       2,556,759  
Aekyung Industrial Co. Ltd.(b)     85,894       1,838,818  
AfreecaTV Co. Ltd.(b)     74,199       3,329,638  
Ahnlab Inc.(b)     63,698       2,811,209  
AK Holdings Inc.     72,815       1,441,911  
Amicogen Inc.(a)     155,693       2,801,064  
Amorepacific Corp.(a)(b)     282,073       37,392,963  
AMOREPACIFIC Group(a)     257,050       13,122,355  
Ananti Inc.(a)(b)     476,406       2,687,016  
Anterogen Co. Ltd.(a)     55,405       1,478,075  
Asia Cement Co. Ltd.(b)     18,396       946,686  
Asiana Airlines Inc.(a)     1,115,748       3,734,471  
BGF retail Co. Ltd.     68,909       8,595,894  
BH Co. Ltd.(a)(b)     211,626       3,092,928  
Binex Co. Ltd.(a)(b)     359,597       2,075,566  
Binggrae Co. Ltd.(a)(b)     68,544       3,030,723  
BNK Financial Group Inc.     2,333,661       11,855,651  
Bukwang Pharmaceutical Co. Ltd.     391,196       4,042,412  
Cafe24 Corp.(a)(b)     63,426       1,786,059  
Caregen Co. Ltd.(a)(d)     51,993       2,540,677  
Celltrion Healthcare Co. Ltd.(a)(b)     465,708       24,847,986  

 


 

22 2 0 2 0   i  S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

 

 

Consolidated Schedule of Investments (unaudited) (continued) iShares® Core MSCI Emerging Markets ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
South Korea (continued)                
Celltrion Inc.(a)(b)     825,728     $ 115,581,523  
Celltrion Pharm Inc.(a)(b)     159,029       5,224,584  
Chabiotech Co. Ltd.(a)(b)     384,769       3,928,477  
Cheil Worldwide Inc.     581,686       9,267,702  
Chong Kun Dang Pharmaceutical Corp.(a)     63,660       4,528,797  
CJ CGV Co. Ltd.(a)(b)     143,278       2,784,159  
CJ CheilJedang Corp.     72,532       14,572,094  
CJ Corp.     128,413       8,511,525  
CJ ENM Co. Ltd.     95,863       9,929,655  
CJ Freshway Corp.(b)     69,742       1,217,398  
CJ Logistics Corp.(a)(b)     77,904       8,563,346  
CMG Pharmaceutical Co. Ltd.(a)(b)     1,042,593       3,068,975  
Com2uSCorp.     93,256       7,494,266  
Cosmax Inc.(b)     73,936       4,571,917  
Coway Co. Ltd.     450,341       25,548,370  
CrystalGenomics Inc.(a)(b)     399,812       3,571,807  
Cuckoo Holdings Co. Ltd.(a)     17,132       1,365,482  
Cuckoo Homesys Co. Ltd.(a)     62,596       1,953,387  
Dae Hwa Pharmaceutical Co. Ltd.(b)     167,698       1,355,944  
Daea TI Co. Ltd.(b)     574,798       1,907,317  
Daeduck Electronics Co.     629,553       4,857,070  
Daekyo Co. Ltd.     433,510       1,788,296  
Daelim Industrial Co. Ltd.(a)     236,568       14,122,009  
Daesang Corp.(a)     201,013       3,244,014  
Daewoo Engineering & Construction Co. Ltd.(a)     1,695,923       5,655,404  
Daewoo Shipbuilding & Marine Engineering  Co. Ltd.(a)     352,469       6,428,315  
Daewoong Co. Ltd.     226,334       1,891,552  
Daewoong Pharmaceutical Co. Ltd.     43,104       3,726,571  
Daishin Securities Co. Ltd. (a)     394,124       3,050,445  
Daou Technology Inc.(b)     293,019       3,860,275  
DB HiTek Co. Ltd.     358,576       7,026,850  
DB Insurance Co. Ltd.     429,085       15,297,967  
Dentium Co. Ltd.(a)(b)     67,588       2,331,772  
DGB Financial Group Inc.     1,491,595       6,889,953  
DIO Corp.(a)     100,182       2,734,486  
Dong-A Socio Holdings Co. Ltd.     44,162       3,112,612  
Dong-A ST Co. Ltd.     52,191       3,828,916  
DongKook Pharmaceutical Co. Ltd.     62,680       4,314,572  
Dongkuk Steel Mill Co. Ltd. (a)(b)     696,068       2,682,255  
Dongsuh Cos. Inc.     324,724       4,184,381  
Dongsung Pharmaceutical Co. Ltd.(a)(b)     183,542       1,836,176  
Dongwon F&B Co. Ltd.     10,951       1,898,053  
Dongwon Industries Co. Ltd.(b)     15,814       2,552,115  
Doosan Bobcat Inc.     437,273       10,225,239  
Doosan Heavy Industries & Construction                
Co. Ltd.(a)(b)     1,270,218       5,239,845  
Doosan Infracore Co. Ltd.(a)(b)     1,338,955       4,630,392  
DoubleUGames Co. Ltd.     83,376       2,821,534  
Douzone Bizon Co. Ltd.(b)     177,618       12,577,314  
E1 Corp.(b)     38,928       1,304,545  
Ecopro Co. Ltd.(b)     213,176       3,993,210  
E-MART Inc.     185,841       16,066,945  
Enzychem Lifesciences Corp.(a)(b)     67,648       3,174,916  
Eo Technics Co Ltd.(a)(b)     82,318       5,991,693  
Eugene Corp.(b)     565,600       1,765,026  
F&F Co. Ltd.(b)     56,850       4,428,168  
Feelux Co. Ltd.(a)(b)     539,520       2,327,777  
Fila Holdings Corp.(b)     448,431       14,178,469  
Foosung Co. Ltd.(b)     492,793       2,905,227  
Security   Shares     Value  
South Korea (continued)                
GemVax & Kael Co. Ltd.(a)(b)     307,718     $ 6,967,678  
Genexine Co. Ltd.(a)     138,378       6,790,719  
Grand Korea Leisure Co. Ltd.     304,738       4,215,396  
Green Cross Cell Corp.     64,993       1,835,537  
Green Cross Corp./South Korea     58,584       5,474,915  
Green Cross Holdings Corp.     248,344       3,588,668  
Green Cross LabCell Corp.(b)     65,847       1,556,039  
GS Engineering & Construction Corp.(b)     527,208       11,394,986  
GS Holdings Corp.     413,130       14,031,793  
GS Home Shopping Inc.     32,551       3,323,445  
GS Retail Co. Ltd.     228,003       6,636,399  
G-treeBNT Co. Ltd.(a)(b)     205,310       3,972,651  
Halla Holdings Corp.     83,129       2,419,605  
Hana Financial Group Inc.     2,597,654       67,160,425  
Hana Tour Service Inc.(b)     101,930       3,550,135  
Hanall Biopharma Co. Ltd.(a)(b)     269,682       5,207,116  
Hancom Inc.(a)(b)     273,108       2,248,728  
Handok Inc.(b)     89,223       1,612,552  
Handsome Co. Ltd.     133,498       2,693,043  
Hanil Cement Co. Ltd./New     23,999       1,434,605  
Hanjin Kal Corp.(a)(b)     404,180       22,363,850  
Hanjin Transportation Co. Ltd.(a)(b)     77,272       1,965,998  
Hankook Shell Oil Co. Ltd.(b)     10,843       2,330,196  
Hankook Technology Group Co. Ltd.(b)     282,580       2,850,231  
Hankook Tire & Technology Co. Ltd.     651,443       13,677,889  
Hanmi Pharm Co. Ltd.(a)     57,770       12,414,961  
Hanon Systems     1,541,951       13,394,469  
Hansae Co. Ltd.(b)     165,778       1,856,386  
Hansol Chemical Co. Ltd.     86,595       6,616,728  
Hanssem Co. Ltd.(b)     99,279       5,231,664  
Hanwha Aerospace Co. Ltd.(a)     325,987       7,381,344  
Hanwha Corp     363,975       6,008,809  
Hanwha General Insurance Co. Ltd.(a)(b)     735,810       1,335,909  
Hanwha Investment & Securities Co. Ltd.(a)     1,628,123       2,352,701  
Hanwha Life Insurance Co. Ltd.     3,381,489       4,594,036  
Hanwha Solutions Corp     922,295       13,555,344  
Harim Holdings Co. Ltd.     349,386       2,031,013  
HDC Holdings Co. Ltd.     369,772       2,773,671  
HDC Hyundai Development Co-Engineering & Construction, Class E(b)     233,072       3,463,935  
Helixmith Co. Ltd.(a)(b)     174,240       8,909,266  
Hite Jinro Co. Ltd.(a)     300,942       6,591,237  
HLB Inc.(a)(b)     296,737       23,577,703  
HLB Life Science Co. Ltd.(a)(b)     373,597       6,875,169  
Hotel Shilla Co. Ltd.(b)     275,136       18,191,372  
HS Industries Co. Ltd.(a)     380,495       3,414,900  
Huchems Fine Chemical Corp.     183,089       2,773,847  
Hugel Inc.(a)     25,135       7,758,840  
Huons Co. Ltd.     65,460       2,368,849  
Huons Global Co. Ltd.     73,300       1,695,949  
Hy-Lok Corp.     131,419       1,536,558  
Hyosung Advanced Materials Corp.(a)     25,098       1,702,820  
Hyosung Chemical Corp.     19,606       1,678,900  
Hyosung Corp.(b)     86,597       4,941,270  
Hyosung Heavy Industries Corp.(a)(b)     60,451       983,044  
Hyosung TNC Co. Ltd.     22,828       2,772,441  
Hyundai Construction Equipment Co. Ltd.(a)     122,826       2,073,226  
Hyundai Department Store Co. Ltd.     123,397       7,203,662  
Hyundai Electric & Energy System Co. Ltd.(a)(b)     222,649       1,582,100  
Hyundai Elevator Co. Ltd.(a)     149,214       6,609,891  

 


 

C o n s o l i d a t e d   S c h e d u l e   o f   I n v e s t m e n t s 23

 

 

 

 

 

Consolidated Schedule of Investments (unaudited) (continued) iShares® Core MSCI Emerging Markets ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
South Korea (continued)                
Hyundai Engineering & Construction Co. Ltd.     684,120     $ 19,546,286  
Hyundai Glovis Co. Ltd.     161,096       16,315,198  
Hyundai Greenfood Co. Ltd.     450,019       3,205,158  
Hyundai Heavy Industries Holdings Co. Ltd.     85,999       19,154,162  
Hyundai Home Shopping Network Corp.     61,642       3,766,024  
Hyundai Livart Furniture Co. Ltd.     162,466       1,245,417  
Hyundai Marine & Fire Insurance Co. Ltd.     546,550       10,170,465  
Hyundai Merchant Marine Co. Ltd. (a)(b)     2,542,273       6,813,585  
Hyundai Mipo Dockyard Co. Ltd.     219,021       6,537,267  
Hyundai Mobis Co. Ltd.     582,705       100,755,908  
Hyundai Motor Co.     1,302,984       123,378,477  
Hyundai Rotem Co. Ltd.(a)(b)     444,093       4,826,700  
Hyundai Steel Co.     713,854       14,018,459  
Hyundai Wia Corp.(b)     149,780       4,741,903  
Il Dong Pharmaceutical Co. Ltd.     142,924       1,600,466  
Iljin Materials Co. Ltd.(a)(b)     199,779       7,624,336  
Ilyang Pharmaceutical Co. Ltd.     204,723       3,472,453  
InBody Co. Ltd.(a)     118,608       1,899,486  
Industrial Bank of Korea(a)     2,121,518       16,612,298  
Innocean Worldwide Inc.(b)     83,666       4,663,803  
Innox Advanced Materials Co. Ltd. (a)(b)     68,808       2,365,364  
Inscobee Inc.(a)(b)     889,127       2,024,237  
iNtRON Biotechnology Inc.(a)(b)     256,224       2,278,484  
IS Dongseo Co. Ltd.     149,958       3,309,077  
JB Financial Group Co. Ltd.     1,078,287       4,448,100  
Jcontentree Corp.(a)     61,628       1,778,560  
Jeil Pharmaceutical Co. Ltd.     69,050       1,580,560  
Jejuair Co. Ltd.(a)     99,738       1,650,666  
Jusung Engineering Co. Ltd.     404,994       2,014,132  
JW Holdings Corp.(b)     422,763       1,743,963  
JW Pharmaceutical Corp.     155,376       3,108,799  
JYP Entertainment Corp.     248,151       4,321,444  
Kakao Corp.     440,263       62,350,956  
Kangwon Land Inc.(a)     1,015,596       19,065,944  
KB Financial Group Inc.     3,458,055       110,760,263  
KCC Corp.     45,144       6,188,947  
KCC Glass Corp.(a)     45,549       997,615  
KEPCO Engineering & Construction Co. Inc.(a)(b)     144,037       2,140,690  
KEPCO Plant Service & Engineering Co. Ltd.(a)     217,192       5,946,179  
Kginicis Co. Ltd.     166,310       2,725,047  
Kia Motors Corp.     2,298,724       68,611,564  
KISWIRE Ltd.(a)     109,969       1,539,294  
KIWOOM Securities Co. Ltd.(a)     108,693       5,915,691  
KMW Co. Ltd.(a)(b)     231,242       9,263,008  
Koh Young Technology Inc.(a)     102,816       8,076,284  
Kolmar BNH Co. Ltd.(a)     87,409       1,925,229  
Kolmar Korea Co. Ltd.(a)(b)     138,150       4,658,084  
Kolmar Korea Holdings Co. Ltd.(a)     140,643       2,518,720  
Kolon Corp.     97,012       1,130,276  
Kolon Industries Inc.     167,314       4,608,195  
Komipharm International Co. Ltd.(a)(b)     378,725       6,189,948  
Korea Aerospace Industries Ltd.(a)     655,239       13,838,518  
Korea Electric Power Corp.(a)     2,226,787       39,053,572  
Korea Gas Corp.     267,019       6,178,044  
Korea Investment Holdings Co. Ltd.(a)     359,973       18,613,672  
Korea Line Corp.(a)     128,330       1,785,737  
Korea Petrochemical Ind. Co Ltd.     35,518       2,503,368  
Korea REIT Co. Ltd.     1,863,515       2,946,026  
Korea Shipbuilding & Offshore Engineering Co. Ltd.(a)     342,289       29,310,874  
Security   Shares     Value  
South Korea (continued)                
Korea Zinc Co. Ltd.(a)     71,856     $ 24,523,929  
Korean Air Lines Co. Ltd.(a)     400,098       7,346,386  
Korean Reinsurance Co.     916,906       6,152,972  
KT Skylife Co. Ltd.     316,301       1,916,818  
KT&G Corp.     995,027       69,393,814  
Kumho Industrial Co. Ltd.(a)(b)     176,415       1,128,649  
Kumho Petrochemical Co. Ltd.     163,750       7,995,368  
Kumho Tire Co. Inc.(a)(b)     981,951       2,963,236  
Kwang Dong Pharmaceutical Co. Ltd.     503,088       2,356,995  
Kyung Dong Navien Co. Ltd.(b)     65,132       1,989,623  
L&F Co. Ltd.(b)     152,321       2,721,586  
LEENO Industrial Inc.     98,275       6,538,180  
LegoChem Biosciences Inc.(a)(b)     72,452       2,678,547  
LF Corp.     176,495       1,823,806  
LG Chem Ltd.     399,122       120,936,102  
LG Corp.     809,603       44,996,462  
LG Display Co. Ltd.(a)(b)     2,019,674       22,616,358  
LG Electronics Inc.     918,666       45,687,465  
LG Hausys Ltd.     71,438       2,688,116  
LG Household & Health Care Ltd.     81,489       81,925,129  
LG Innotek Co. Ltd.     123,237       13,191,280  
LG International Corp.(b)     328,818       3,045,865  
LG Uplus Corp.     1,409,027       15,314,250  
LIG Nex1 Co. Ltd.     97,157       2,083,936  
Lock&Lock Co. Ltd.(a)     226,030       2,279,842  
Lotte Chemical Corp.(b)     148,119       22,867,281  
Lotte Chilsung Beverage Co. Ltd.(a)     33,708       3,122,396  
Lotte Confectionery Co. Ltd.(b)     20,944       2,328,069  
Lotte Corp.     258,417       6,181,156  
LOTTE Fine Chemical Co. Ltd.     174,647       4,774,212  
Lotte Food Co. Ltd.(a)     5,453       1,488,406  
LOTTE Himart Co. Ltd.     101,429       1,762,167  
Lotte Shopping Co. Ltd.     100,127       7,848,572  
Lotte Tour Development Co. Ltd.(a)(b)     145,743       1,254,026  
LS Corp.     172,191       5,111,145  
LS Industrial Systems Co. Ltd.     146,799       5,270,018  
Maeil Dairies Co. Ltd.(a)     40,565       2,688,746  
Mando Corp.(b)     286,494       7,029,659  
Medipost Co. Ltd.(a)(b)     162,046       3,695,903  
Medy-Tox Inc.(b)     40,823       9,865,418  
MeereCo. Inc.(b)     57,182       1,205,318  
Meritz Financial Group Inc..     330,200       2,773,191  
Meritz Fire & Marine Insurance Co. Ltd.     443,461       5,367,539  
Meritz Securities Co. Ltd.(b)     2,601,141       7,442,540  
Mezzion Pharma Co. Ltd.(a)(b)     58,881       6,777,739  
Mirae Asset Daewoo Co. Ltd.(a)     3,299,418       17,223,804  
Mirae Asset Life Insurance Co. Ltd.     653,883       2,148,204  
Modetour Network Inc.(a)     178,978       2,085,252  
Muhak Co. Ltd.(a)(b)     212,563       1,078,129  
Namhae Chemical Corp.(a)(b)     263,047       1,503,126  
Namyang Dairy Products Co. Ltd.(a)(b)     6,353       1,979,918  
Naturecell Co. Ltd.(a)(b)     469,681       2,807,644  
NAVER Corp.     1,221,170       174,955,603  
NCSoft Corp.     149,571       79,927,196  
Netmarble Corp.(a)(b)(c)     223,799       16,326,547  
Nexen Corp.     523,380       2,154,714  
Nexen Tire Corp.(a)     319,770       1,690,345  
NH Investment & Securities Co. Ltd.(a)     1,151,740       9,464,278  
NHN Corp.(a)     94,187       5,405,380  
NICE Holdings Co. Ltd.(a)     214,470       3,637,779  

 


 

24 2 0 2 0   i  S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

 

 

Consolidated Schedule of Investments (unaudited) (continued) iShares® Core MSCI Emerging Markets ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
South Korea (continued)                
NICE Information Service Co. Ltd.(a)     362,550     $ 4,656,879  
NKMax Co. Ltd.(a)     339,933       2,636,615  
Nong Shim Holdings Co. Ltd.(b)     36,733       2,289,574  
NongShim Co. Ltd.     28,383       6,169,709  
NS Shopping Co. Ltd.     212,841       1,288,087  
OCI Co. Ltd.(a)(b)     173,854       7,050,070  
Orion Corp.     210,753       16,363,942  
Orion Holdings Corp.     238,557       2,799,043  
Oscotec Inc.(a)(b)     193,274       3,222,559  
Osstem Implant Co. Ltd.(a)     106,163       2,840,920  
Ottogi Corp.     12,187       4,987,187  
Pan Ocean Co. Ltd.(a)     2,367,059       7,279,510  
Paradise Co. Ltd.(b)     453,585       6,124,985  
Partron Co. Ltd.(b)     369,442       2,722,524  
Pearl Abyss Corp.(a)(b)     56,363       8,223,568  
Pharmicell Co. Ltd.(a)(b)     526,944       3,358,210  
Poongsan Corp.     224,503       3,770,985  
POSCO     686,706       110,540,159  
POSCO Chemical Co. Ltd.(b)     213,113       9,633,515  
Posco ICT Co. Ltd.     734,035       2,695,592  
Posco International Corp.     479,268       5,899,594  
RFHIC Corp.(b)     121,731       2,981,883  
S&T Motiv Co. Ltd.     77,712       2,511,483  
S-1 Corp.     144,512       9,780,886  
Sam Chun Dang Pharm Co. Ltd.     128,837       4,190,252  
Samchully Co. Ltd.(a)     33,205       2,143,493  
Samjin Pharmaceutical Co. Ltd.(b)     126,081       2,356,557  
Samsung Biologics Co. Ltd.(a)(b)(c)     145,089       55,371,553  
Samsung C&T Corp.     741,368       64,400,431  
Samsung Card Co. Ltd.     164,062       4,552,400  
Samsung Electro-Mechanics Co. Ltd.(b)     484,620       50,277,579  
Samsung Electronics Co. Ltd.     41,661,767       1,859,257,119  
Samsung Engineering Co. Ltd.(a)     1,383,996       16,067,800  
Samsung Fire & Marine Insurance Co. Ltd.     267,371       43,589,508  
Samsung Heavy Industries Co. Ltd.(a)(b)     3,889,637       18,671,539  
Samsung Life Insurance Co. Ltd.     597,283       28,769,910  
Samsung SDI Co. Ltd.     482,589       117,220,054  
Samsung SDS Co. Ltd.     297,572       40,795,173  
Samsung Securities Co. Ltd.     511,973       13,953,319  
Samwha Capacitor Co. Ltd.(b)     79,877       3,840,936  
Samyang Corp.(b)     64,442       2,013,647  
Samyang Foods Co. Ltd.(b)     43,716       3,077,578  
Samyang Holdings Corp.     50,482       2,042,973  
Sangsangin Co. Ltd.(b)     371,815       2,372,636  
Seah Besteel Corp.     154,450       1,386,171  
Sebang Global Battery Co. Ltd.(b)     87,664       2,291,751  
Seegene Inc.(a)     181,867       5,465,744  
Seobu T&D(a)     323,683       1,806,975  
Seoul Semiconductor Co. Ltd.(a)(b)     367,913       4,528,859  
SFA Engineering Corp.     165,937       5,021,148  
Shinhan Financial Group Co. Ltd.     4,090,714       108,793,794  
Shinsegae Food Co. Ltd.(b)     27,714       1,339,491  
Shinsegae Inc.     65,379       12,704,359  
Shinsegae International Inc.(b)     25,634       3,873,066  
Silicon Works Co. Ltd.     113,454       3,078,064  
SillaJen Inc.(a)(b)     586,255       5,358,115  
Sindoh Co. Ltd.     90,865       2,248,245  
SK Chemicals Co. Ltd.(b)     84,408       3,996,262  
SK D&D Co. Ltd.(b)     67,501       1,539,545  
SK Discovery Co. Ltd.     130,685       2,324,245  
Security   Shares     Value  
South Korea (continued)                
SK Gas Ltd.     41,677     $ 2,662,936  
SK Holdings Co. Ltd.     304,983       48,214,686  
SK Hynix Inc..     4,754,105       344,080,551  
SK Innovation Co. Ltd.     480,664       44,722,134  
SK Materials Co. Ltd.(b)     42,455       5,173,602  
SK Networks Co. Ltd.     1,396,782       4,979,881  
SK Telecom Co. Ltd.     168,286       29,444,854  
SKC Co. Ltd.(b)     190,698       8,070,710  
SKCKOLONPI Inc.(b)     139,136       3,837,839  
SL Corp.(a)(b)     141,014       1,741,630  
SM Entertainment Co. Ltd.(a)(b)     175,241       4,105,069  
S-Oil Corp.     391,228       21,453,919  
Songwon Industrial Co. Ltd.     154,173       1,415,421  
Soulbrain Co. Ltd.     93,679       6,672,074  
SPC Samlip Co. Ltd.(a)     24,302       1,346,665  
Ssangyong Motor Co.(a)(b)     726,627       1,100,859  
STCUBE(a)(b)     233,151       1,889,013  
Sungwoo Hitech Co. Ltd.     671,524       1,680,883  
Taekwang Industrial Co. Ltd.(a)     4,337       2,878,240  
Taeyoung Engineering & Construction Co. Ltd.     352,060       3,739,460  
Taihan Fiberoptics Co. Ltd.(a)(b)     714,104       1,643,409  
Tego Science Inc.(a)     66,663       944,095  
Telcon RF Pharmaceutical Inc.(a)     712,959       2,627,000  
Tera Resource Co. Ltd.(a)(d)     49,111       0 (e)
Theragen Etex Co. Ltd.(a)(b)     291,140       1,733,176  
Tokai Carbon Korea Co. Ltd.     54,364       2,967,751  
Tongyang Inc.(a)(b)     2,303,099       2,645,387  
Tongyang Life Insurance Co. Ltd.     601,784       1,590,553  
Toptec Co. Ltd.(b)     224,074       1,798,865  
Value Added Technology Co. Ltd.     111,463       2,349,488  
Vieworks Co. Ltd.(b)     87,148       2,159,864  
Webzen Inc.(a)     164,569       1,964,801  
Wemade Co. Ltd.(b)     99,182       2,466,279  
Wonik Holdings Co. Ltd.(a)     638,565       2,276,646  
WONIK IPS Co. Ltd.(a)(b)     277,195       7,109,612  
Woori Financial Group Inc.     4,605,714       36,443,731  
Woori Investment Bank Co. Ltd.(a)(b)     2,809,562       1,304,729  
YG Entertainment Inc.(a)     113,840       2,840,142  
Youlchon Chemical Co. Ltd.(b)     119,146       1,201,761  
Youngone Corp.(b)     189,194       4,907,049  
Youngone Holdings Co. Ltd.     65,927       2,187,615  
Yuanta Securities Korea Co. Ltd.(a)     1,098,104       2,120,258  
Yuhan Corp.     81,411       14,344,960  
Yungjin Pharmaceutical Co. Ltd.(a)(b)     1,027,886       4,240,188  
Yuyang DNU Co. Ltd.(a)(b)     557,962       797,089  
              6,108,567,532  
Taiwan — 13.0%                
AcBel Polytech Inc.     6,300,000       4,858,237  
Accton Technology Corp.     4,408,000       23,801,846  
Acer Inc.(b)     24,997,872       13,498,083  
A-DATA Technology Co. Ltd.(b)     2,311,820       5,130,676  
Advanced Ceramic X Corp.     423,000       4,135,075  
Advantech Co. Ltd.     3,170,165       30,833,191  
Airtac International Group     1,096,880       17,442,419  
AmTRAN Technology Co. Ltd.(a)(b)     8,025,000       2,446,234  
Arcadyan Technology Corp.(b)     1,495,391       3,886,698  
Ardentec Corp.     4,490,546       3,915,204  
ASE Technology Holding Co. Ltd.     30,477,222       71,765,582  
Asia Cement Corp.(b)     19,901,050       29,148,816  
Asia Optical Co. Inc.     2,308,000       6,379,881  

 


 

C o n s o l i d a t e d   S c h e d u l e   o f   I n v e s t m e n t s 25

 

 

 

 

 

Consolidated Schedule of Investments (unaudited) (continued) iShares® Core MSCI Emerging Markets ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Taiwan (continued)                
Asia Pacific Telecom Co. Ltd.(a)     15,593,173     $ 3,800,512  
ASMedia Technology Inc.(b)     247,000       6,354,563  
Asustek Computer Inc.     6,068,000       41,282,320  
AU Optronics Corp.(b)     70,255,000       22,042,058  
Bank of Kaohsiung Co. Ltd.(b)     23,788,836       7,699,288  
BES Engineering Corp.(b)     16,045,000       3,756,966  
Bizlink Holding Inc.(b)     1,012,926       6,406,160  
Brighton-Best International Taiwan Inc.     4,728,000       4,442,332  
Capital Securities Corp.     22,086,050       7,184,649  
Career Technology MFG. Co. Ltd. (b)     3,969,940       4,182,403  
Casetek Holdings Ltd.(b)     1,791,485       2,455,345  
Catcher Technology Co. Ltd.     5,713,000       44,716,095  
Cathay Financial Holding Co. Ltd.     66,568,872       88,049,120  
Cathay Real Estate Development Co. Ltd.(b)     6,852,900       4,809,331  
Center Laboratories Inc.(b)     2,513,031       4,299,113  
Century Iron & Steel Industrial Co. Ltd.(b)     1,123,000       2,729,662  
Chailease Holding Co. Ltd.     11,252,637       42,736,943  
Chang Hwa Commercial Bank Ltd.     52,064,963       39,891,912  
Charoen Pokphand Enterprise     1,732,000       3,557,866  
Cheng Loong Corp.(b)     8,330,000       6,506,201  
Cheng Shin Rubber Industry Co. Ltd.     16,232,650       21,202,507  
Cheng Uei Precision Industry Co. Ltd.     3,583,000       4,401,909  
Chicony Electronics Co. Ltd.(b)     5,088,787       14,033,049  
Chilisin Electronics Corp.(b)     1,959,000       6,922,604  
China Airlines Ltd.     21,846,000       5,887,262  
China Bills Finance Corp.(b)     14,182,000       7,142,638  
China Development Financial Holding Corp.     106,349,000       32,172,157  
China General Plastics Corp.(b)     4,623,040       2,969,604  
China Life Insurance Co. Ltd.(a)     21,814,707       17,398,741  
China Man-Made Fiber Corp.     13,863,514       3,328,580  
China Metal Products     3,332,146       3,191,342  
China Motor Corp.     2,100,800       2,442,186  
China Petrochemical Development Corp.(b)     25,740,245       6,885,714  
China Steel Chemical Corp.(b)     1,799,000       7,010,750  
China Steel Corp.     98,225,529       74,611,112  
Chin-Poon Industrial Co. Ltd.(b)     3,748,000       3,707,214  
Chipbond Technology Corp.     4,988,000       9,636,817  
ChipMOS Technologies Inc.(b)     5,389,000       5,241,370  
Chlitina Holding Ltd.(b)     419,000       2,580,739  
Chong Hong Construction Co. Ltd.     1,824,122       4,927,861  
Chroma ATE Inc.(b)     3,112,000       14,594,164  
Chung Hung Steel Corp.(b)     11,359,000       3,398,753  
Chunghwa Precision Test Tech Co. Ltd.(b)     182,000       4,868,641  
Chunghwa Telecom Co. Ltd.     31,936,000       113,908,354  
Cleanaway Co. Ltd.(b)     830,000       4,358,394  
Clevo Co.(b)     4,512,175       4,567,386  
CMC Magnetics Corp.(a)(b)     10,871,640       2,872,343  
Compal Electronics Inc.     29,478,000       17,961,628  
Compeq Manufacturing Co. Ltd.(b)     8,980,000       11,566,241  
Concraft Holding Co. Ltd.(b)     638,747       2,826,734  
Continental Holdings Corp.(b)     7,372,600       3,007,038  
Coretronic Corp.     4,080,200       4,972,321  
CSBC Corp. Taiwan(a)(b)     2,476,712       1,889,465  
CTBC Financial Holding Co. Ltd.     156,867,599       117,600,835  
CTCI Corp.(b)     4,885,000       5,969,220  
Cub Elecparts Inc.(b)     506,726       3,380,460  
Darfon Electronics Corp.     2,166,000       2,700,391  
Darwin Precisions Corp.(b)     4,195,000       1,821,835  
Delta Electronics Inc.(b)     16,821,000       77,773,411  
Depo Auto Parts Ind. Co. Ltd.(b)     888,000       1,542,588  
Security   Shares     Value  
Taiwan (continued)                
E Ink Holdings Inc.(b)     7,834,000     $ 7,994,538  
E.Sun Financial Holding Co. Ltd.     94,523,557       90,685,425  
Eclat Textile Co. Ltd.(b)     1,615,683       19,209,230  
Egis Technology Inc.(b)     588,000       4,175,102  
Elan Microelectronics Corp.     2,614,100       7,251,916  
Elite Material Co. Ltd.(b)     2,418,000       9,582,721  
Elite Semiconductor Memory Technology Inc.(b)     4,011,000       4,550,202  
eMemory Technology Inc.     654,000       6,825,212  
Ennoconn Corp.(b)     586,384       4,231,408  
Epistar Corp.(b)     9,390,000       9,055,235  
Eternal Materials Co. Ltd.     10,265,915       9,137,086  
Eva Airways Corp.     14,297,326       5,689,750  
Evergreen Marine Corp. Taiwan Ltd.(a)     18,936,449       7,223,236  
Everlight Chemical Industrial Corp.     8,527,781       4,182,287  
Everlight Electronics Co. Ltd.(b)     4,014,000       4,189,052  
Far Eastern Department Stores Ltd.(b)     9,562,167       7,658,071  
Far Eastern International Bank     23,808,042       9,278,056  
Far Eastern New Century Corp.     26,706,916       24,916,870  
Far EasTone Telecommunications Co. Ltd.     12,524,000       27,339,831  
Faraday Technology Corp.(b)     2,454,000       3,570,029  
Farglory Land Development Co. Ltd.(b)     2,870,782       3,588,537  
Feng Hsin Steel Co. Ltd.     4,660,000       8,356,743  
Feng TAY Enterprise Co. Ltd.     3,262,656       18,425,475  
Firich Enterprises Co. Ltd.     2,727,041       2,809,943  
First Financial Holding Co. Ltd.     88,447,807       69,228,786  
FLEXium Interconnect Inc.(b)     2,677,616       10,036,804  
Formosa Chemicals & Fibre Corp.     29,893,210       81,151,335  
Formosa Petrochemical Corp.(b)     10,258,000       29,168,705  
Formosa Plastics Corp.     38,326,800       115,184,821  
Formosa Taffeta Co. Ltd.     4,516,000       4,996,318  
Foxconn Technology Co. Ltd.     7,765,424       15,259,259  
Foxsemicon Integrated Technology Inc.(b)     628,000       3,463,597  
Fubon Financial Holding Co. Ltd.     54,761,000       80,388,595  
Fusheng Precision Co. Ltd.(b)     786,000       5,022,903  
General Interface Solution Holding Ltd.(b)     2,187,000       7,092,700  
Genius Electronic Optical Co. Ltd.     657,287       10,962,200  
Getac Technology Corp.     4,008,000       6,459,499  
Giant Manufacturing Co. Ltd.     2,693,000       14,630,311  
Gigabyte Technology Co. Ltd.(b)     4,943,000       8,505,104  
Ginko International Co. Ltd.     359,000       2,086,692  
Global Unichip Corp.(b)     756,000       5,592,695  
Globalwafers Co. Ltd.(b)     1,893,000       25,600,935  
Goldsun Building Materials Co. Ltd.(b)     16,866,000       7,213,286  
Gourmet Master Co. Ltd.(b)     858,471       2,679,222  
Grand Pacific Petrochemical(a)     9,469,000       5,159,877  
Grape King Bio Ltd.(b)     1,080,000       7,846,893  
Great Wall Enterprise Co. Ltd.(b)     6,756,789       8,992,837  
Greatek Electronics Inc.(b)     3,303,000       5,148,751  
HannStar Display Corp.(b)     25,501,640       5,550,151  
Highwealth Construction Corp.(b)     5,394,230       7,989,934  
Hiwin Technologies Corp.(b)     2,039,386       20,306,639  
Holtek Semiconductor Inc.     1,826,000       3,955,997  
Holy Stone Enterprise Co. Ltd.(b)     1,324,330       4,417,422  
Hon Hai Precision Industry Co. Ltd.     108,686,928       288,233,304  
Hota Industrial Manufacturing Co. Ltd.(b)     1,880,216       7,172,012  
Hotai Motor Co. Ltd.(b)     2,658,000       55,039,416  
Hsin Kuang Steel Co. Ltd.(b)     2,843,000       2,746,338  
HTC Corp.(b)     6,819,000       7,882,065  
Hua Nan Financial Holdings Co. Ltd.     73,795,167       52,520,215  
Huaku Development Co. Ltd.     2,667,000       7,610,060  

 


 

26 2 0 2 0   i  S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

 

 

Consolidated Schedule of Investments (unaudited) (continued) iShares® Core MSCI Emerging Markets ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Taiwan (continued)                
Hung Sheng Construction Ltd.     5,443,200     $ 3,712,151  
IBF Financial Holdings Co. Ltd.     24,480,741       9,176,387  
IEI Integration Corp.     1,964,373       2,961,529  
Innolux Corp.(b)     72,099,241       18,810,879  
International CSRC Investment Holdings Co.(b)     7,201,685       6,445,472  
International Games System Co. Ltd.(b)     590,000       11,885,929  
Inventec Corp.     19,951,000       15,121,632  
ITEQ Corp.(b)     1,737,000       8,231,956  
Jih Sun Financial Holdings Co. Ltd.     12,712,646       4,190,036  
Kenda Rubber Industrial Co. Ltd.     5,290,889       4,918,791  
Kindom Development Co. Ltd.(b)     3,389,000       2,932,406  
King Slide Works Co. Ltd.     560,000       6,445,285  
King Yuan Electronics Co. Ltd.(b)     9,272,000       10,028,501  
King’s Town Bank Co. Ltd.(b)     8,303,000       10,077,288  
Kinpo Electronics(b)     14,526,000       6,380,416  
Kinsus Interconnect Technology Corp.(b)     2,715,000       4,626,695  
LandMark Optoelectronics Corp.(b)     685,900       6,025,509  
Largan Precision Co. Ltd.(b)     886,000       129,624,994  
Lealea Enterprise Co. Ltd.(b)     9,808,173       2,856,985  
Lien Hwa Industrial Holdings Corp.(b)     7,229,392       9,072,703  
Lite-On Technology Corp.     18,150,238       26,284,712  
Longchen Paper & Packaging Co. Ltd.(b)     6,629,646       3,984,860  
Lotes Co. Ltd.(b)     682,722       6,674,011  
Lotus Pharmaceutical Co. Ltd.(a)(b)     905,000       2,600,274  
Machvision Inc.(b)     333,000       4,003,104  
Macronix International(b)     15,941,554       17,373,843  
Makalot Industrial Co. Ltd.(b)     1,649,568       8,089,990  
MediaTek Inc.     13,122,572       156,017,303  
Mega Financial Holding Co. Ltd.     99,223,958       106,008,852  
Mercuries Life Insurance Co. Ltd.(a)(b)     12,923,000       4,972,108  
Merida Industry Co. Ltd.     1,863,850       9,110,117  
Merry Electronics Co. Ltd.(b)     1,652,051       7,665,687  
Micro-Star International Co. Ltd.     5,772,000       17,308,661  
Mitac Holdings Corp.     9,440,226       10,615,753  
momo.com Inc.     344,000       4,016,050  
Nan Kang Rubber Tire Co. Ltd.(b)     5,663,000       8,013,988  
Nan Ya Plastics Corp.     42,887,440       96,455,842  
Nan Ya Printed Circuit Board Corp.(b)     2,378,000       4,162,354  
Nanya Technology Corp.     10,504,000       26,815,476  
Nien Made Enterprise Co. Ltd.     1,411,000       11,370,201  
Novatek Microelectronics Corp.(b)     5,110,000       32,992,784  
OBI Pharma Inc.(a)     1,344,258       5,061,029  
On-Bright Electronics Inc.     403,000       2,954,672  
Oriental Union Chemical Corp.(b)     5,684,000       3,744,969  
Pan Jit International Inc.(b)     2,705,200       2,170,986  
Pan-International Industrial Corp.     6,129,366       3,967,555  
Parade Technologies Ltd.     623,000       13,744,084  
PChome Online Inc.(a)(b)     837,070       2,944,169  
Pegatron Corp.     16,989,000       35,179,257  
PharmaEngine Inc.(b)     1,293,793       2,614,975  
PharmaEssentia Corp.(a)     1,761,000       5,873,974  
Pharmally International Holding Co. Ltd.(b)     576,543       3,960,466  
Phison Electronics Corp.     1,283,000       14,131,029  
Pixart Imaging Inc.     1,356,000       8,351,987  
Pou Chen Corp.     16,653,000       18,754,184  
Powertech Technology Inc.     6,249,000       21,050,480  
Poya International Co. Ltd.     475,447       7,489,827  
President Chain Store Corp.     4,885,000       47,834,426  
President Securities Corp.     10,025,135       4,568,994  
Primax Electronics Ltd.(b)     3,738,000       6,042,871  
Security   Shares     Value  
Taiwan (continued)                
Prince Housing & Development Corp.     10,710,995     $ 3,802,678  
Qisda Corp.(b)     12,988,000       8,042,570  
Quanta Computer Inc.(b)     22,847,000       46,781,288  
Radiant Opto-Electronics Corp.(b)     4,106,000       13,316,244  
Radium Life Tech Co. Ltd.(b)     7,395,279       2,466,762  
Realtek Semiconductor Corp.     4,382,110       32,562,452  
Ritek Corp.(a)     13,678,583       2,412,313  
Roo Hsing Co. Ltd.(a)(b)     5,301,000       1,759,443  
Ruentex Development Co. Ltd.     5,383,391       7,298,278  
Ruentex Industries Ltd.     2,838,943       6,338,036  
Sanyang Motor Co. Ltd.     5,894,000       3,990,390  
ScinoPharm Taiwan Ltd.     2,813,027       2,638,418  
SDI Corp.(b)     1,238,000       2,416,348  
Sercomm Corp.(b)     2,166,000       5,279,176  
Shanghai Commercial & Savings Bank Ltd. (The)     29,213,346       48,528,916  
Shin Kong Financial Holding Co. Ltd.     94,161,404       28,640,715  
Shin Zu Shing Co. Ltd.     1,769,000       8,120,709  
Shining Building Business Co. Ltd.(a)(b)     8,180,184       2,442,209  
Shinkong Synthetic Fibers Corp.     15,555,000       6,292,995  
Sigurd Microelectronics Corp.(b)     5,322,700       5,994,289  
Silergy Corp.(b)     666,000       22,325,005  
Simplo Technology Co. Ltd.(b)     1,466,400       13,729,566  
Sinbon Electronics Co. Ltd.(b)     2,404,809       10,404,068  
Sino-American Silicon Products Inc.(b)     4,449,000       15,427,765  
SinoPac Financial Holdings Co. Ltd.     89,239,660       38,313,565  
Sinyi Realty Inc.     3,704,704       3,535,922  
Sitronix Technology Corp.(b)     1,093,000       5,197,972  
Soft-World International Corp.(b)     1,065,000       2,803,233  
Sporton International Inc.     637,000       4,417,840  
St. Shine Optical Co. Ltd.     462,000       6,026,850  
Standard Foods Corp.     4,092,096       9,176,285  
Sunny Friend Environmental Technology Co. Ltd.     698,000       5,751,449  
Sunonwealth Electric Machine Industry Co. Ltd.(b)     2,113,000       2,756,436  
Supreme Electronics Co. Ltd.(b)     3,971,000       4,085,162  
Synnex Technology International Corp.     10,592,250       13,153,077  
TA Chen Stainless Pipe(b)     7,966,596       8,129,851  
Taichung Commercial Bank Co. Ltd.     26,668,577       10,877,225  
TaiDoc Technology Corp.     461,000       2,352,235  
Taigen Biopharmaceuticals Holdings Ltd.(a)(b)     4,612,000       3,122,443  
TaiMed Biologics Inc.(a)     1,727,000       5,076,141  
Tainan Spinning Co. Ltd.(b)     11,360,894       3,752,008  
Taishin Financial Holding Co. Ltd.     73,719,267       34,571,693  
Taiwan Business Bank     43,120,691       17,089,063  
Taiwan Cement Corp.(b)     42,719,158       59,607,471  
Taiwan Cogeneration Corp.(b)     4,484,000       5,012,745  
Taiwan Cooperative Financial Holding Co. Ltd.     79,830,672       55,233,824  
Taiwan Fertilizer Co. Ltd.(b)     6,203,000       9,833,187  
Taiwan Glass Industry Corp.(b)     12,543,053       4,204,560  
Taiwan High Speed Rail Corp.     17,459,000       19,892,518  
Taiwan Hon Chuan Enterprise Co. Ltd.     3,158,674       6,165,149  
Taiwan Mobile Co. Ltd.     13,503,000       46,824,254  
Taiwan Paiho Ltd.(b)     2,305,000       5,305,851  
Taiwan Secom Co. Ltd.(b)     2,455,185       7,159,723  
Taiwan Semiconductor Co. Ltd.(b)     2,444,000       3,543,374  
Taiwan Semiconductor Manufacturing Co. Ltd.     214,900,000       2,242,718,671  
Taiwan Shin Kong Security Co. Ltd.     5,332,770       6,701,296  
Taiwan Styrene Monomer(b)     5,195,000       3,174,012  
Taiwan Surface Mounting Technology Corp.(b)     2,185,000       6,732,624  
Taiwan TEA Corp.(b)     9,508,000       4,961,324  
Taiwan Union Technology Corp.(b)     2,092,000       9,188,923  

 


 

C o n s o l i d a t e d   S c h e d u l e   o f   I n v e s t m e n t s 27

 

 

 

 

 

Consolidated Schedule of Investments (unaudited) (continued) iShares® Core MSCI Emerging Markets ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Taiwan (continued)                
Tanvex BioPharma Inc.(a)(b)     1,208,738     $ 1,774,415  
Tatung Co. Ltd.(a)(b)     16,662,000       11,583,253  
TCI Co. Ltd.(b)     833,446       5,972,945  
Teco Electric and Machinery Co. Ltd.(b)     16,719,000       14,770,166  
Test Research Inc.(b)     1,765,400       2,973,477  
Test Rite International Co. Ltd.(b)     7,532,000       5,012,295  
Thinking Electronic Industrial Co. Ltd.     1,032,000       2,852,702  
Ton Yi Industrial Corp.(b)     9,505,000       3,358,824  
Tong Hsing Electronic Industries Ltd.(b)     1,351,000       6,759,573  
Tong Yang Industry Co. Ltd.(b)     3,600,400       4,631,370  
Topco Scientific Co. Ltd.     2,015,639       6,923,049  
TPK Holding Co. Ltd.(a)(b)     3,067,000       4,542,841  
Transcend Information Inc.     2,334,000       6,020,093  
Tripod Technology Corp.     3,598,000       13,070,890  
TSRC Corp.(b)     7,768,900       5,503,489  
TTY Biopharm Co. Ltd.     1,992,124       5,144,870  
Tung Ho Steel Enterprise Corp.(b)     9,354,000       6,950,742  
TXC Corp.(b)     3,230,000       5,061,626  
U-Ming Marine Transport Corp.     4,794,000       4,638,921  
Unimicron Technology Corp.(b)     11,557,000       15,267,095  
Union Bank of Taiwan(a)     6,078,830       2,208,330  
Uni-President Enterprises Corp.     42,695,369       103,215,080  
Unitech Printed Circuit Board Corp.(b)     5,409,000       4,894,618  
United Integrated Services Co. Ltd.     1,560,400       9,456,345  
United Microelectronics Corp.     95,204,000       48,105,854  
United Renewable Energy Co. Ltd.(a)     21,512,388       4,966,119  
UPC Technology Corp.(b)     10,817,365       3,558,215  
USI Corp.(b)     13,414,300       5,294,040  
Vanguard International Semiconductor Corp.(b)     7,199,000       17,641,170  
Via Technologies Inc.(a)     2,041,000       1,937,904  
Visual Photonics Epitaxy Co. Ltd.(b)     1,839,000       5,945,874  
Voltronic Power Technology Corp.     514,272       11,939,867  
Wafer Works Corp.(b)     4,941,404       5,573,043  
Wah Lee Industrial Corp.     2,641,000       4,779,696  
Walsin Lihwa Corp.(b)     22,802,000       10,505,058  
Walsin Technology Corp.(b)     2,780,597       19,560,005  
Win Semiconductors Corp.     2,939,427       26,550,415  
Winbond Electronics Corp.     25,647,480       13,552,393  
Wistron Corp.     24,823,004       22,175,474  
Wistron NeWeb Corp.(b)     2,859,654       6,516,492  
Wiwynn Corp.(b)     693,000       16,570,023  
WPG Holdings Ltd.     10,680,200       13,685,555  
WT Microelectronics Co. Ltd.(b)     5,116,734       6,455,167  
XinTec Inc.(a)(b)     1,701,000       4,994,102  
XPEC Entertainment Inc.(a)(d)     31,000       0 (e)
Xxentria Technology Materials Corp.(b)     1,433,000       2,943,662  
Yageo Corp.(b)     2,246,454       30,418,142  
Yang Ming Marine Transport Corp.(a)     13,474,677       3,083,919  
YFY Inc.(b)     16,000,000       7,344,903  
Yieh Phui Enterprise Co. Ltd.(b)     14,945,026       4,476,672  
Yuanta Financial Holding Co. Ltd.     91,492,912       58,014,958  
Yulon Finance Corp.(b)     1,615,200       5,707,703  
Yulon Motor Co. Ltd.(b)     8,156,000       5,494,886  
YungShin Global Holding Corp.     3,245,650       4,727,065  
Zhen Ding Technology Holding Ltd.     4,619,950       17,622,623  
              7,165,328,817  
Thailand — 2.4%                
Advanced Info Service PCL, NVDR(b)     10,399,700       65,914,752  
Airports of Thailand PCL, NVDR     36,901,200       69,873,133  
Amata Corp. PCL, NVDR(b)     9,758,200       4,484,041  
Security   Shares     Value  
Thailand (continued)                
AP Thailand PCL, NVDR     26,614,190     $ 5,144,876  
B Grimm Power PCL, NVDR     5,715,700       8,196,337  
Bangchak Corp. PCL, NVDR(b)     10,572,400       8,041,122  
Bangkok Airways PCL, NVDR(b)     10,895,600       1,609,048  
Bangkok Bank PCL, Foreign     4,137,900       17,243,982  
Bangkok Chain Hospital PCL, NVDR     14,396,450       5,976,660  
Bangkok Dusit Medical Services PCL, NVDR     82,228,000       57,850,154  
Bangkok Expressway & Metro PCL, NVDR(b)     72,472,885       21,244,626  
Bangkok Land PCL, NVDR(b)     175,162,900       5,717,566  
Banpu PCL, NVDR     39,774,000       8,949,308  
BCPG PCL, NVDR(b)     8,400,700       3,860,249  
Beauty Community PCL, NVDR(b)     25,196,700       1,517,152  
BEC World PCL, NVDR(a)(b)     13,368,300       1,855,590  
Berli Jucker PCL, NVDR     10,442,000       12,078,371  
BTS Group Holdings PCL, NVDR(b)     67,072,700       23,168,830  
Bumrungrad Hospital PCL, NVDR     3,904,100       15,898,490  
Central Pattana PCL, NVDR     19,353,200       32,505,771  
Central Retail Corp. PCL, NVDR(a)     9,013,817       8,998,106  
CH Karnchang PCL, NVDR(b)     11,405,200       6,795,049  
Charoen Pokphand Foods PCL, NVDR     33,934,400       28,767,080  
Chularat Hospital PCL, NVDR     62,931,600       4,985,866  
CK Power PCL, NVDR(b)     30,891,300       3,700,495  
CP ALL PCL, NVDR     50,304,300       104,817,231  
Dynasty Ceramic PCL, NVDR(b)     44,067,420       2,402,027  
Eastern Polymer Group PCL, NVDR(b)     14,735,600       1,886,605  
Electricity Generating PCL, NVDR     2,700,700       23,365,270  
Energy Absolute PCL, NVDR(b)     14,720,000       18,192,996  
Esso Thailand PCL, NVDR(b)     14,563,200       2,769,108  
GFPT PCL, NVDR(b)     7,057,300       2,393,063  
Global Power Synergy PCL, NVDR     5,662,800       11,305,860  
Gulf Energy Development PCL, NVDR     5,057,000       26,523,007  
Gunkul Engineering PCL, NVDR(b)     61,228,041       4,773,284  
Hana Microelectronics PCL, NVDR     6,268,500       6,654,880  
Home Product Center PCL, NVDR     53,350,875       21,641,299  
Indorama Ventures PCL, NVDR(b)     14,883,700       12,263,546  
Intouch Holdings PCL, NVDR     20,388,500       34,890,794  
IRPC PCL, NVDR(b)     103,029,700       7,183,183  
Italian-Thai Development PCL, NVDR(b)     59,536,600       2,188,638  
Jasmine International PCL, NVDR     40,142,900       6,157,238  
Kasikornbank PCL(b)     10,259,000       38,851,228  
Kasikornbank PCL, NVDR     5,188,700       19,567,590  
KCE Electronics PCL, NVDR(b)     7,400,400       5,182,977  
Khon Kaen Sugar Industry PCL, NVDR     25,937,186       1,742,571  
Kiatnakin Bank PCL, NVDR(b)     3,274,300       6,459,362  
Krung Thai Bank PCL, NVDR     27,308,700       12,116,045  
Land & Houses PCL, NVDR     69,505,800       18,502,574  
LPN Development PCL, NVDR(b)     15,946,900       2,122,547  
Major Cineplex Group PCL, NVDR(b)     7,276,500       4,358,290  
MBK PCL, NVDR     10,609,100       5,984,534  
Mega Lifesciences PCL, NVDR(b)     4,276,700       3,388,290  
Minor International PCL, NVDR     24,043,060       20,953,388  
Muangthai Capital PCL, NVDR(b)     6,330,200       11,534,987  
Origin Property PCL, NVDR(b)     11,851,300       1,915,437  
Osotspa PCL, NVDR     3,882,300       5,136,619  
Plan B Media PCL, NVDR     26,595,300       4,298,401  
Precious Shipping PCL, NVDR(a)(b)     10,344,700       1,514,578  
Prima Marine PCL, NVDR(b)     12,890,400       1,944,488  
PTG Energy PCL, NVDR.     7,991,200       3,570,779  
PTT Exploration & Production PCL, NVDR     12,457,401       41,847,077  
PTT Global Chemical PCL, NVDR     20,009,000       26,156,592  

 


 

28 2 0 2 0   i  S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

 

 

Consolidated Schedule of Investments (unaudited) (continued) iShares® Core MSCI Emerging Markets ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Thailand (continued)                
PTT PCL, NVDR     98,729,100     $ 122,022,973  
Quality Houses PCL, NVDR(b)     87,352,217       6,256,251  
Ratch Group PCL, NVDR     6,692,400       12,513,123  
Ratchthani Leasing PCL, NVDR     12,743,150       2,059,581  
RS PCL, NVDR(b)     5,351,400       1,780,691  
Siam Cement PCL (The), NVDR     6,690,400       65,727,270  
Siam Commercial Bank PCL (The), NVDR     7,141,800       19,747,173  
Siam Global House PCL, NVDR(b)     15,436,683       6,750,950  
Siamgas & Petrochemicals PCL, NVDR(b)     11,349,900       2,841,521  
Singha Estate PCL, NVDR     42,722,800       2,870,301  
Sino-Thai Engineering & Construction PCL, NVDR     9,408,528       4,442,626  
Sri Trang Agro-Industry PCL, NVDR(b)     10,387,460       3,884,393  
Srisawad Corp PCL, NVDR     8,335,249       17,764,078  
Supalai PCL, NVDR     14,757,600       7,576,394  
Super Energy Corp. PCL, NVDR     178,414,000       2,205,085  
Taokaenoi Food & Marketing PCL, Class R, NVDR(b)     6,700,300       1,688,081  
Thai Airways International PCL, NVDR(a)(b)     14,251,900       1,761,445  
Thai Oil PCL, NVDR(b)     10,308,500       14,129,064  
Thai Union Group PCL, NVDR     28,783,700       13,956,286  
Thai Vegetable Oil PCL, NVDR     6,484,500       5,651,204  
Thanachart Capital PCL, NVDR     5,021,200       8,393,862  
Thonburi Healthcare Group PCL, NVDR(b)     6,201,300       4,421,779  
Thoresen Thai Agencies PCL, NVDR(b)     21,534,323       1,883,528  
TMB Bank PCL, NVDR(b)     163,847,827       5,659,773  
Total Access Communication PCL, NVDR(b)     6,794,000       7,858,691  
TPI Polene PCL, NVDR(b)     81,661,600       3,234,891  
True Corp. PCL, NVDR(b)     104,450,311       10,989,543  
TTW PCL, NVDR(b)     19,039,100       8,386,737  
U City PCL, NVDR(a)(b)     36,771,100       1,433,321  
Unique Engineering & Construction PCL, NVDR(b)     10,182,100       2,032,871  
WHA Corp. PCL, NVDR(b)     81,428,000       7,070,598  
Workpoint Entertainment PCL, NVDR(b)     3,073,200       847,309  
              1,328,774,430  
Turkey — 0.6%                
Akbank T.A.S.(a)     25,053,393       27,101,002  
Aksa Akrilik Kimya Sanayii AS     2,124,503       2,685,694  
Anadolu Efes Biracilik Ve Malt Sanayii AS     1,978,018       6,944,468  
Arcelik AS(a)     1,831,055       5,444,014  
Aselsan Elektronik Sanayi Ve Ticaret AS     3,059,991       13,465,576  
BIM Birlesik Magazalar AS     3,706,053       28,489,624  
Coca-Cola Icecek AS     795,465       5,740,764  
Dogan Sirketler Grubu Holding AS     10,617,954       2,922,412  
Emlak Konut Gayrimenkul Yatirim Ortakligi AS     20,029,539       4,455,104  
Eregli Demir ve Celik Fabrikalari TAS     13,060,795       17,242,318  
Ford Otomotiv Sanayi AS     653,591       8,157,795  
Haci Omer Sabanci Holding AS     8,341,392       11,359,002  
Kardemir Karabuk Demir Celik Sanayi ve Ticaret AS, Class D(b)     11,529,009       4,796,643  
KOC Holding AS     6,430,414       17,698,623  
Koza Altin Isletmeleri AS(a)     481,542       5,625,086  
Koza Anadolu Metal Madencilik Isletmeleri AS(a)(b)     2,121,550       3,836,223  
Mavi Giyim Sanayi Ve Ticaret AS, Class B(a)(b)(c)     365,166       3,126,196  
MLP Saglik Hizmetleri AS(a)(b)(c)     882,901       2,103,676  
Petkim Petrokimya Holding AS(a)(b)     10,045,535       5,851,222  
Sasa Polyester Sanayi AS(b)     1,631,889       2,277,085  
Soda Sanayii AS(b)     4,299,114       3,983,177  
Sok Marketler Ticaret AS(a)(b)     1,621,093       2,204,951  
TAV Havalimanlari Holding AS     1,734,935       5,652,402  
Tekfen Holding AS     2,003,102       4,759,942  
Security   Shares     Value  
Turkey (continued)                
Trakya Cam Sanayii AS     6,082,090     $ 3,250,659  
Tupras Turkiye Petrol Rafinerileri AS(b)     1,094,450       17,740,974  
Turk Hava Yollari AO(a)(b)     4,679,968       8,799,396  
Turkcell Iletisim Hizmetleri AS     9,880,211       21,881,365  
Turkiye Garanti Bankasi AS(a)     20,122,096       30,589,257  
Turkiye Halk Bankasi AS(a)     6,280,212       6,009,628  
Turkiye Is Bankasi AS, Class C(a)     13,747,218       12,560,966  
Ulker Biskuvi Sanayi AS(a)     1,595,939       5,230,200  
              301,985,444  
United Arab Emirates — 0.6%                
Abu Dhabi Commercial Bank PJSC.     24,711,614       47,971,306  
Air Arabia PJSC(a)     24,562,985       9,362,678  
Aldar Properties PJSC     34,056,235       19,657,279  
Amanat Holdings PJSC     12,983,721       2,820,934  
Arabtec Holding PJSC     6,705,106       1,360,044  
Dana Gas PJSC     33,449,239       7,968,658  
Deyaar Development PJSC(a)     30,801,465       2,599,704  
DP World PLC.     1,483,941       24,114,041  
Dubai Investments PJSC.     20,134,920       6,962,168  
Dubai Islamic Bank PJSC     14,838,562       21,816,068  
DXB Entertainments PJSC(a)     40,366,869       1,956,302  
Emaar Malls PJSC.     22,891,199       10,034,259  
Emaar Properties PJSC     31,279,269       29,806,813  
Emirates Telecommunications Group Co. PJSC     15,312,524       65,871,077  
Eshraq Investments PJSC(a)     25,179,547       2,125,203  
First Abu Dhabi Bank PJSC     24,183,760       94,288,285  
              348,714,819  
Total Common Stocks — 96.8%                
(Cost: $50,429,029,279)             53,548,598,320  
                 
Preferred Stocks                
Brazil — 2.1%                
Alpargatas SA, Preference Shares, NVS     2,065,175       14,437,206  
Azul SA, Preference Shares, NVS     2,479,879       24,426,944  
Banco ABC Brasil SA, Preference Shares, NVS     941,463       4,169,302  
Banco Bradesco SA, Preference Shares, NVS     35,038,742       237,104,561  
Banco do Estado do Rio Grande do Sul SA, Class B, Preference Shares, NVS     1,751,579       7,046,459  
Bradespar SA, Preference Shares, NVS     1,913,200       14,159,287  
Braskem SA, Class A, Preference Shares, NVS     1,654,500       9,861,028  
Centrais Eletricas Brasileiras SA, Class B, Preference Shares, NVS     2,131,100       16,933,923  
Cia. Brasileira de Distribuicao, Preference  Shares, NVS     1,349,900       21,575,541  
Cia. de Saneamento do Parana, Preference  Shares, NVS     1,282,473       5,628,310  
Cia. Energetica de Minas Gerais, Preference Shares, NVS     8,006,294       24,773,168  
Cia. Energetica de Sao Paulo, Class B, Preference Shares, NVS     1,658,400       11,983,164  
Cia. Paranaense de Energia, Preference Shares, NVS     920,800       14,635,570  
Gerdau SA, Preference Shares, NVS     9,595,074       36,005,586  
Gol Linhas Aereas Inteligentes SA, Preference Shares, NVS     1,028,300       5,834,779  
Itau Unibanco Holding SA, Preference Shares, NVS.     42,125,082       298,782,624  
Itausa-Investimentos Itau SA, Preference Shares, NVS     38,499,177       102,484,704  

 


 

C o n s o l i d a t e d   S c h e d u l e   o f   I n v e s t m e n t s 29

 

 

 

 

 

Consolidated Schedule of Investments (unaudited) (continued) iShares® Core MSCI Emerging Markets ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Brazil (continued)                
Lojas Americanas SA, Preference Shares, NVS     6,614,327     $ 38,997,063  
Marcopolo SA, Preference Shares, NVS     6,066,979       6,589,207  
Metalurgica Gerdau SA, Preference Shares, NVS     6,696,936       11,800,703  
Petroleo Brasileiro SA, Preference Shares, NVS     36,843,208       206,932,473  
Randon SA Implemetos e Participacoes, Preference Shares, NVS     2,106,200       5,452,643  
Telefonica Brasil SA, Preference Shares, NVS     3,858,740       45,655,035  
Unipar Carbocloro SA, Preference Shares, NVS     516,894       3,070,442  
              1,168,339,722  
Chile — 0.1%                
Embotelladora Andina SA, Class B, Preference Shares     3,183,834       7,665,296  
Sociedad Quimica y Minera de Chile SA, Series B, Preference Shares     1,013,985       26,521,110  
              34,186,406  
Colombia — 0.1%                
Avianca Holdings SA, Preference Shares, NVS     4,109,639       1,900,111  
Bancolombia SA, Preference Shares, NVS     4,013,253       47,610,609  
Grupo Aval Acciones y Valores SA, Preference Shares, NVS     34,510,389       14,107,476  
              63,618,196  
Russia — 0.1%                
Surgutneftegas PJSC, Preference Shares, NVS     59,524,677       29,027,138  
Transneft PJSC, Preference Shares, NVS     3,409       7,703,224  
              36,730,362  
South Korea — 0.6%                
Amorepacific Corp., Preference Shares, NVS     79,600       4,810,737  
Hyundai Motor Co.                
Preference Shares, NVS     199,419       10,886,356  
Series 2, Preference Shares, NVS     318,854       19,664,195  
LG Chem Ltd., Preference Shares, NVS(b)     66,443       10,230,416  
LG Household & Health Care Ltd., Preference Shares, NVS     18,457       11,139,548  
Samsung Electronics Co. Ltd., Preference Shares, NVS     7,223,499       270,918,386  
              327,649,638  
Total Preferred Stocks — 3.0%                
(Cost: $1,507,162,834)             1,630,524,324  
                 
Rights                
China — 0.0%                
Legend Holdings Corp. Class H,                
(Expires 04/16/20)(a)     221,423       0 (e)
Security   Shares     Value  
South Korea — 0.0%                
HDC Hyundai Development Co.,                
(Expires 06/03/20)(a)     118,693     $ 0 (e)
Total Rights — 0.0%                
(Cost: $0)             0 (e)
                 
Warrants                
Thailand — 0.0%                
BTS Group Holdings PCL (Expires 02/16/21)(a)(b)     6,892,910       187,859  
Total Warrants — 0.0%                
(Cost: $0)             187,859  
                 
Short-Term Investments                
Money Market Funds — 3.0%                
BlackRock Cash Funds: Institutional, SL Agency Shares, 1.74%(g)(h)(i)     1,658,909,241       1,660,070,478  
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52%(g)(h)     3,018,433       3,018,433  
              1,663,088,911  
Total Short-Term Investments — 3.0%                
(Cost: $1,661,970,331)             1,663,088,911  
Total Investments in Securities — 102.8%                
(Cost: $53,598,162,444)             56,842,399,414  
Other Assets, Less Liabilities — (2.8)%             (1,525,451,378 )
Net Assets — 100.0%           $ 55,316,948,036  

 

(a) Non-income producing security.
(b) All or a portion of this 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) Rounds to less than $1.
(f) This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933.
(g) Affiliate of the Fund.
(h) Annualized 7-day yield as of period-end.
(i) All or a portion of this security was purchased with cash collateral received from loaned securities.

 


 

30 2 0 2 0   i  S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

 

 

 

Consolidated Schedule of Investments (unaudited) (continued) iShares® Core MSCI Emerging Markets ETF

February 29, 2020

 

Affiliates 

 

Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940Act, were as follows:

 

Affiliated Issuer  

Shares

Held at 08/31/19

    Net Activity    

Shares

Held at 02/29/20

    Value at 02/29/20     Income     Net Realized Gain (Loss)(a)     Change in Unrealized Appreciation (Depreciation)  
BlackRock Cash Funds: Institutional, SL Agency Shares   2,014,538,692     (355,629,451 )   1,658,909,241     $ 1,660,070,478     $ 26,465,171 (b)   $ 175,766     $ 153,675  
BlackRock Cash Funds: Treasury, SL Agency Shares   139,883,000     (136,864,567 )   3,018,433       3,018,433       894,811              
                      $ 1,663,088,911     $ 27,359,982     $ 175,766     $ 153,675  

 

(a) Includes realized capital gain distributions from an affiliated fund, if any.
(b) Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

 

Futures Contracts

 

Description     Number of
Contracts
      Expiration
Date
    Notional
Amount
(000)
    Value/
Unrealized
Appreciation
(Depreciation)
 
Long Contracts                                
MSCI Emerging Markets E-Mini     2,172       03/20/20     $ 109,556     $ (12,517,103 )

 

Derivative Financial Instruments Categorized by Risk Exposure

 

As of February 29, 2020, the fair values of derivative financial instruments located in the Consolidated Statements of Assets and Liabilities were as follows:

 

    Equity  
    Contracts  
Liabilities — Derivative Financial Instruments        
Futures contracts        
Unrealized depreciation on futures contracts(a)   $ 12,517,103  

 

(a)

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

 

For the six months ended February 29, 2020, the effect of derivative financial instruments in the Consolidated Statements of Operations was as follows:

 

  Equity  
    Contracts  
Net Realized Gain (Loss) from:        
Futures contracts   $ 9,191,415  
         
Net Change in Unrealized Appreciation (Depreciation) on:        
Futures contracts   $ (4,579,401 )

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:      
Average notional value of contracts — long   $ 123,215,460  

 

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

 

Fair Value Measurements 

 

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

 

C o n s o l i d a t e d   S c h e d u l e   o f   I n v e s t m e n t s 31

 

 

 

 

Consolidated Schedule of Investments (unaudited) (continued) iShares® Core MSCI Emerging Markets ETF

February 29, 2020 

 

Fair Value Measurements (continued)

 

The following table summarizes the value of the Fund's investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund's investments into major categories is disclosed in the Consolidated Schedule of Investments above.

 

    Level 1     Level 2     Level 3     Total  
Investments                        
Assets                        
Common Stocks   $ 53,533,597,533     $ 1,682,626     $ 13,318,161     $ 53,548,598,320  
Preferred Stocks     1,630,524,324                   1,630,524,324  
Rights           0 (a)           0 (a)
Warrants     187,859                   187,859  
Money Market Funds     1,663,088,911                   1,663,088,911  
    $ 56,827,398,627     $ 1,682,626     $ 13,318,161     $ 56,842,399,414  
Derivative financial instruments(b)                                
Liabilities                                
Futures Contracts   $ (12,517,103 )   $     $     $ (12,517,103 )

 

(a) Rounds to less than $1.
(b) Shown at the unrealized appreciation (depreciation) on the contracts.

 

See notes to consolidated financial statements

 

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Consolidated Schedule of Investments (unaudited) iShares® MSCI BRIC ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
Common Stocks                
                 
Brazil — 8.3%                
Ambev SA     384,465     $ 1,239,041  
Atacadao SA     37,200       170,596  
B2W Cia. Digital(a)     12,420       171,091  
B3 SA - Brasil, Bolsa, Balcao     173,669       1,847,686  
Banco Bradesco SA     99,226       600,197  
Banco BTG Pactual SA     24,800       371,369  
Banco do Brasil SA     74,489       773,676  
Banco Santander Brasil SA     37,200       328,658  
BB Seguridade Participacoes SA     62,000       437,689  
BR Malls Participacoes SA     62,018       224,613  
BRF SA(a)     49,600       297,271  
CCR SA     99,200       359,056  
Centrais Eletricas Brasileiras SA     28,075       214,873  
Cia. de Saneamento Basico do Estado de Sao Paulo     24,800       322,942  
Cia. Siderurgica Nacional SA     49,600       122,910  
Cielo SA     99,221       150,646  
Cogna Educacao     124,064       277,461  
Cosan SA     12,400       201,103  
Embraer SA(a)     62,000       233,068  
Energisa SA     12,400       148,416  
Engie Brasil Energia SA     14,725       155,127  
Equatorial Energia SA     62,000       338,883  
Hapvida Participacoes e Investimentos SA(b)     12,400       151,714  
Hypera SA     37,200       282,814  
IRB Brasil Resseguros S/A     62,000       456,928  
JBS SA     86,852       436,989  
Klabin SA     62,000       264,537  
Localiza Rent a Car SA     51,283       563,110  
Lojas Renner SA     66,716       788,173  
Magazine Luiza SA     62,000       694,256  
Multiplan Empreendimentos Imobiliarios SA     24,830       167,968  
Natura & Co. Holding SA     49,600       500,326  
Notre Dame Intermedica Participacoes SA     37,200       521,352  
Petrobras Distribuidora SA     62,000       358,671  
Petroleo Brasileiro SA     297,600       1,790,884  
Porto Seguro SA     12,400       167,600  
Raia Drogasil SA     24,850       660,405  
Rumo SA(a)     86,800       406,329  
Sul America SA     24,889       298,228  
Suzano SA     49,615       419,429  
TIM Participacoes SA     74,469       266,241  
Ultrapar Participacoes SA     49,600       209,761  
Vale SA     260,429       2,557,736  
WEG SA     74,472       712,260  
              21,662,083  
China — 65.6%                
360 Security Technology Inc., Class A     7,999       25,575  
3SBio Inc.(a)(b)     124,000       128,566  
51job Inc., ADR(a)(c)     2,604       194,701  
58.com Inc., ADR(a)     7,316       403,624  
AAC Technologies Holdings Inc.(c)     76,000       497,854  
AECC Aviation Power Co. Ltd., Class A     24,800       81,955  
Agricultural Bank of China Ltd., Class A     421,600       205,667  
Agricultural Bank of China Ltd., Class H     2,232,000       893,596  
Aier Eye Hospital Group Co. Ltd., Class A     24,800       141,913  
Air China Ltd., Class H     248,000       199,532  
Aisino Corp., Class A     24,800       83,729  
Alibaba Group Holding Ltd., ADR(a)     142,848       29,712,384  
Security   Shares     Value  
             
China (continued)                
Alibaba Health Information Technology Ltd.(a)(c)     326,000     $ 624,972  
Alibaba Pictures Group Ltd.(a)     1,240,000       167,072  
A-Living Services Co. Ltd., Class H(b)     31,000       138,829  
Aluminum Corp. of China Ltd., Class A(a)     111,600       48,854  
Aluminum Corp. of China Ltd., Class H(a)     248,000       65,874  
Angang Steel Co. Ltd., Class A     142,420       58,270  
Anhui Conch Cement Co. Ltd., Class A     24,800       194,634  
Anhui Conch Cement Co. Ltd., Class H     124,000       909,349  
ANTA Sports Products Ltd.     124,040       997,184  
Anxin Trust Co. Ltd., Class A(a)     24,800       10,608  
Autohome Inc., ADR(a)     4,464       346,719  
AVIC Aircraft Co. Ltd., Class A     12,400       30,174  
Avic Capital Co. Ltd., Class A     45,199       27,545  
AVIC Electromechanical Systems Co. Ltd., Class A     24,800       27,496  
AviChina Industry & Technology Co. Ltd., Class H     248,000       107,881  
BAIC BluePark New Energy Technology Co. Ltd., Class A(a)     24,800       22,813  
BAIC Motor Corp. Ltd., Class H(b)     124,000       60,782  
Baidu Inc., ADR(a)     22,196       2,663,076  
Bank of Beijing Co. Ltd., Class A     135,890       99,339  
Bank of Chengdu Co. Ltd., Class A     24,800       28,986  
Bank of China Ltd., Class A     198,400       100,758  
Bank of China Ltd., Class H     6,324,000       2,499,396  
Bank of Communications Co. Ltd., Class A     235,600       175,262  
Bank of Communications Co. Ltd., Class H     620,200       397,919  
Bank of Guiyang Co. Ltd., Class A     12,400       14,901  
Bank of Hangzhou Co. Ltd., Class A     20,399       25,068  
Bank of Jiangsu Co. Ltd., Class A     86,800       79,223  
Bank of Nanjing Co. Ltd., Class A     62,000       68,828  
Bank of Ningbo Co. Ltd., Class A     37,200       133,895  
Bank of Shanghai Co. Ltd., Class A     73,890       91,012  
Baoshan Iron & Steel Co. Ltd., Class A     86,800       64,570  
Baozun Inc., ADR(a)(c)     3,844       121,932  
BBMG Corp., Class A     49,600       23,912  
BBMG Corp., Class H     124,000       34,846  
Beijing Capital International Airport Co. Ltd., Class H     248,000       193,485  
Beijing Dabeinong Technology Group Co. Ltd., Class A     37,200       36,454  
Beijing Enlight Media Co. Ltd., Class A     12,400       19,229  
Beijing Enterprises Holdings Ltd.     62,000       261,746  
Beijing Enterprises Water Group Ltd.     496,000       230,400  
Beijing New Building Materials PLC, Class A     12,400       44,703  
Beijing Oriental Yuhong Waterproof Technology Co. Ltd., Class A     12,400       55,098  
Beijing Originwater Technology Co. Ltd., Class A     24,800       34,982  
Beijing Sinnet Technology Co. Ltd., Class A     12,400       44,525  
Beijing Tongrentang Co. Ltd., Class A     24,269       90,754  
Beijing Yanjing Brewery Co. Ltd., Class A     24,800       20,755  
BEST Inc., ADR(a)     18,848       101,968  
BOC Aviation Ltd.(b)     12,400       107,642  
BOE Technology Group Co. Ltd., Class A     161,200       112,998  
Bohai Leasing Co. Ltd., Class A(a)     49,600       23,416  
Bosideng International Holdings Ltd.     248,000       72,239  
Brilliance China Automotive Holdings Ltd.     248,000       210,033  
BYD Co. Ltd., Class A     12,400       115,961  
BYD Co. Ltd., Class H(c)     62,000       379,492  
BYD Electronic International Co. Ltd.     62,000       116,155  
Caitong Securities Co. Ltd., Class A     12,400       19,690  
CGN Power Co. Ltd., Class H(b)     744,000       181,392  
Changjiang Securities Co. Ltd., Class A     37,200       35,868  
Chaozhou Three-Circle Group Co. Ltd., Class A     12,400       42,219  


 

C o n s o l i d a t e d   S c h e d u l e   o f   I n v e s t m e n t s 33

 

 

 

 

 

Consolidated Schedule of Investments (unaudited) (continued) iShares® MSCI BRIC ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
China (continued)                
Chengdu Xingrong Environment Co. Ltd., Class A     37,200     $ 24,054  
China Agri-Industries Holdings Ltd.     248,000       134,612  
China Aoyuan Group Ltd.     124,000       178,528  
China Cinda Asset Management Co. Ltd., Class H     496,000       103,744  
China CITIC Bank Corp. Ltd., Class A     24,800       19,265  
China CITIC Bank Corp. Ltd., Class H     744,000       386,652  
China Coal Energy Co. Ltd., Class H     248,000       80,195  
China Communications Construction Co. Ltd., Class A     24,800       30,972  
China Communications Construction Co. Ltd., Class H     248,000       184,893  
China Communications Services Corp. Ltd., Class H     248,800       192,513  
China Conch Venture Holdings Ltd.     124,000       603,050  
China Construction Bank Corp., Class A     37,200       34,591  
China Construction Bank Corp., Class H     7,936,370       6,415,862  
China East Education Holdings Ltd.(a)(b)     62,000       126,179  
China Eastern Airlines Corp. Ltd., Class A(a)     111,600       72,482  
China Enterprise Co. Ltd., Class A     37,200       22,245  
China Everbright Bank Co. Ltd., Class A     248,000       134,108  
China Everbright Bank Co. Ltd., Class H     124,000       49,644  
China Everbright International Ltd.     248,000       165,163  
China Evergrande Group     124,000       278,453  
China First Capital Group Ltd.(a)     224,000       6,180  
China Fortune Land Development Co. Ltd., Class A     12,400       41,847  
China Galaxy Securities Co. Ltd., Class H     310,000       171,050  
China Gas Holdings Ltd.     148,800       544,177  
China Gezhouba Group Co. Ltd., Class A     24,800       23,593  
China Grand Automotive Services Group Co. Ltd., Class A     74,400       43,851  
China Greatwall Technology Group Co. Ltd., Class A     12,400       24,817  
China Hongqiao Group Ltd.     186,000       99,766  
China Huarong Asset Management Co. Ltd., Class H(b)     868,000       118,064  
China Huishan Dairy Holdings Co. Ltd.(a)(d)     51,450       99  
China International Capital Corp. Ltd., Class H(b)     99,200       183,047  
China International Travel Service Corp. Ltd., Class A     12,400       139,252  
China Jinmao Holdings Group Ltd.(c)     496,000       362,148  
China Jushi Co. Ltd., Class A     62,000       83,196  
China Lesso Group Holdings Ltd.     124,000       186,166  
China Life Insurance Co. Ltd., Class A     11,893       50,106  
China Life Insurance Co. Ltd., Class H     620,000       1,452,730  
China Literature Ltd.(a)(b)     24,800       112,177  
China Longyuan Power Group Corp. Ltd., Class H     248,000       129,839  
China Medical System Holdings Ltd.     128,000       157,679  
China Mengniu Dairy Co. Ltd.(c)     248,000       889,459  
China Merchants Bank Co. Ltd., Class A     111,600       546,010  
China Merchants Bank Co. Ltd., Class H     310,456       1,464,030  
China Merchants Energy Shipping Co. Ltd., Class A     24,800       17,952  
China Merchants Port Holdings Co. Ltd.     86,000       126,467  
China Merchants Securities Co. Ltd., Class A     37,200       93,929  
China Merchants Shekou Industrial Zone Holdings Co. Ltd., Class A     36,681       90,991  
China Minsheng Banking Corp. Ltd., Class A     235,600       192,789  
China Minsheng Banking Corp. Ltd., Class H     434,000       292,933  
China Mobile Ltd.     496,000       3,901,528  
China Molybdenum Co. Ltd., Class A     99,200       57,759  
China Molybdenum Co. Ltd., Class H     372,000       138,908  
China National Building Material Co. Ltd., Class H     294,000       339,911  
China National Nuclear Power Co. Ltd., Class A     111,600       73,280  
China Northern Rare Earth Group High-Tech Co. Ltd., Class A     12,400       16,143  
China Overseas Land & Investment Ltd.     344,800       1,156,995  
China Pacific Insurance Group Co. Ltd., Class A     37,200       169,710  
Security   Shares     Value  
             
China (continued)                
China Pacific Insurance Group Co. Ltd., Class H     198,400     $ 653,013  
China Petroleum & Chemical Corp., Class A     148,800       97,920  
China Petroleum & Chemical Corp., Class H     1,984,600       1,023,744  
China Power International Development Ltd.     620,000       115,359  
China Railway Construction Corp. Ltd., Class A     62,000       84,261  
China Railway Construction Corp. Ltd., Class H.     124,000       141,932  
China Railway Group Ltd., Class A     74,400       57,155  
China Railway Group Ltd., Class H     248,000       140,022  
China Railway Signal & Communication Corp. Ltd., Class H(b)     128,000       65,700  
China Reinsurance Group Corp., Class H     496,000       67,465  
China Renewable Energy Investment Ltd.(a)(d)     7,709       0 (e)
China Resources Beer Holdings Co. Ltd.     98,000       453,969  
China Resources Cement Holdings Ltd.     248,000       312,186  
China Resources Gas Group Ltd.     73,000       364,389  
China Resources Land Ltd.     248,444       1,146,093  
China Resources Pharmaceutical Group Ltd.(b)     124,000       107,881  
China Resources Power Holdings Co. Ltd.     248,200       295,239  
China Shenhua Energy Co. Ltd., Class A     24,800       56,765  
China Shenhua Energy Co. Ltd., Class H     248,000       430,250  
China Shipbuilding Industry Co. Ltd., Class A     124,000       78,230  
China Southern Airlines Co. Ltd., Class A     62,000       51,089  
China Southern Airlines Co. Ltd., Class H     248,000       130,793  
China State Construction Engineering Corp. Ltd., Class A     272,800       209,570  
China State Construction International Holdings Ltd.(c)     248,000       200,805  
China Taiping Insurance Holdings Co. Ltd.     124,040       253,395  
China Telecom Corp. Ltd., Class H     992,000       372,968  
China Tower Corp. Ltd., Class H(b)     3,472,000       842,043  
China Traditional Chinese Medicine Holdings Co. Ltd.     248,000       130,475  
China Unicom Hong Kong Ltd.     539,900       426,070  
China United Network Communications Ltd., Class A     148,800       116,652  
China Vanke Co. Ltd., Class A     49,601       209,964  
China Vanke Co. Ltd., Class H     111,601       429,617  
China Yangtze Power Co. Ltd., Class A     111,656       272,024  
China Zhongwang Holdings Ltd.     148,800       50,026  
Chongqing Changan Automobile Co. Ltd., Class A     24,800       36,081  
Chongqing Rural Commercial Bank Co. Ltd., Class H     248,000       112,018  
Chongqing Zhifei Biological Products Co. Ltd., Class A     12,400       106,399  
CIFI Holdings Group Co. Ltd.     248,000       189,348  
CITIC Guoan Information Industry Co. Ltd., Class A(a)     49,600       24,551  
CITIC Ltd.     496,000       550,542  
CITIC Securities Co. Ltd., Class A     49,600       166,038  
CITIC Securities Co. Ltd., Class H.     186,000       397,631  
CNOOC Ltd.     1,488,000       2,039,232  
Contemporary Amperex Technology Co. Ltd., Class A     12,400       240,667  
COSCO SHIPPING Development Co. Ltd., Class A     24,800       7,486  
COSCO SHIPPING Holdings Co. Ltd., Class A(a)     99,200       57,333  
COSCO SHIPPING Holdings Co. Ltd., Class H(a)(c)     186,000       62,055  
COSCO SHIPPING Ports Ltd.     248,000       165,163  
Country Garden Holdings Co. Ltd.     620,046       821,100  
Country Garden Services Holdings Co. Ltd.     128,000       499,317  
CRRC Corp. Ltd., Class A     124,000       113,530  
CRRC Corp. Ltd., Class H     372,400       238,931  
CSC Financial Co. Ltd., Class A     12,400       57,138  
CSPC Pharmaceutical Group Ltd.     248,000       565,180  
Dali Foods Group Co. Ltd.(b)     186,000       122,917  
Dalian Port PDA Co. Ltd., Class A     86,800       22,103  
Daqin Railway Co. Ltd., Class A     74,400       75,356  
DHC Software Co. Ltd., Class A     12,400       26,165  

 



 

34 2 0 2 0   i  S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

 

 

Consolidated Schedule of Investments (unaudited) (continued) iShares® MSCI BRIC ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
China (continued)                
Dongfang Electric Corp. Ltd., Class A     24,800 $     32,817  
Dongfeng Motor Group Co. Ltd., Class H     248,000       196,031  
Dongxing Securities Co. Ltd., Class A     45,199       78,175  
East Money Information Co. Ltd., Class A     37,200       92,332  
ENN Energy Holdings Ltd.     62,000       686,984  
Everbright Securities Co. Ltd., Class A     37,297       63,387  
Fangda Carbon New Material Co. Ltd., Class A(a)     12,400       17,863  
Far East Horizon Ltd.     124,000       108,358  
Fiberhome Telecommunication Technologies Co. Ltd., Class A     12,400       53,182  
Financial Street Holdings Co. Ltd., Class A     24,800       24,622  
First Capital Securities Co. Ltd., Class A     24,800       26,999  
Focus Media Information Technology Co. Ltd., Class A     86,839       66,339  
Foshan Haitian Flavouring & Food Co. Ltd., Class A     11,843       168,711  
Fosun International Ltd.     186,000       237,003  
Founder Securities Co. Ltd., Class A     49,699       52,044  
Foxconn Industrial Internet Co. Ltd., Class A     24,800       60,597  
Fujian Sunner Development Co. Ltd., Class A     12,400       38,476  
Fuyao Glass Industry Group Co. Ltd., Class A     12,400       41,102  
Fuyao Glass Industry Group Co. Ltd., Class H(b)     49,600       141,613  
Ganfeng Lithium Co. Ltd., Class A     12,400       92,208  
GCL System Integration Technology Co. Ltd., Class A(a)     24,800       19,584  
GD Power Development Co. Ltd., Class A     136,400       40,977  
GDS Holdings Ltd., ADR(a)     5,456       316,284  
Geely Automobile Holdings Ltd.     372,000       661,605  
GEM Co. Ltd., Class A     32,799       25,103  
Gemdale Corp., Class A     24,800       50,734  
GF Securities Co. Ltd., Class A     37,200       77,165  
GF Securities Co. Ltd., Class H     74,400       88,978  
GoerTek Inc., Class A     24,800       79,010  
GOME Retail Holdings Ltd.(a)(c)     992,400       101,875  
Grandjoy Holdings Group Co. Ltd., Class A     24,800       19,797  
Great Wall Motor Co. Ltd., Class H     248,000       179,483  
Gree Electric Appliances Inc. of Zhuhai, Class A     12,400       105,016  
Greenland Holdings Corp. Ltd., Class A     57,599       48,121  
Guangdong Haid Group Co. Ltd., Class A     12,400       60,668  
Guangdong HEC Technology Holding Co. Ltd., Class A     24,800       29,589  
Guangdong Investment Ltd.     248,000       465,892  
Guanghui Energy Co. Ltd., Class A     49,600       20,152  
Guangshen Railway Co. Ltd., Class A     49,600       18,307  
Guangzhou Automobile Group Co. Ltd., Class A     12,400       19,247  
Guangzhou Automobile Group Co. Ltd., Class H     254,235       283,496  
Guangzhou Baiyun International Airport Co. Ltd., Class A     12,400       27,460  
Guangzhou Baiyunshan Pharmaceutical Holdings Co. Ltd., Class A     12,400       60,437  
Guangzhou R&F Properties Co. Ltd., Class H     99,200       153,770  
Guosen Securities Co. Ltd., Class A     24,800       41,758  
Guotai Junan Securities Co. Ltd., Class A     62,000       150,783  
Guotai Junan Securities Co. Ltd., Class H(b)     49,600       82,868  
Guoyuan Securities Co. Ltd., Class A     24,800       32,001  
Haier Electronics Group Co. Ltd.     144,000       412,059  
Haier Smart Home Co. Ltd., Class A     37,279       90,768  
Haitong Securities Co. Ltd., Class A     62,000       126,036  
Haitong Securities Co. Ltd., Class H     198,400       213,088  
Hangzhou Hikvision Digital Technology Co. Ltd., Class A     49,004       245,363  
Henan Shuanghui Investment & Development Co. Ltd., Class A     12,400       60,313  
Hengan International Group Co. Ltd.     62,000       460,243  
Hengli Petrochemical Co. Ltd., Class A     37,200       79,294  
Hengtong Optic-Electric Co. Ltd., Class A     12,400       29,216  
Security   Shares     Value  
             
China (continued)                
Hengyi Petrochemical Co. Ltd., Class A     12,400     $ 24,498  
Hesteel Co. Ltd., Class A     62,000       19,957  
HLA Corp. Ltd., Class A     24,800       24,161  
Holitech Technology Co. Ltd., Class A     37,200       38,104  
Huaan Securities Co. Ltd., Class A     24,800       27,318  
Huadian Power International Corp. Ltd., Class A     99,200       46,831  
Huadong Medicine Co. Ltd., Class A     12,400       34,236  
Hualan Biological Engineering Inc., Class A     12,400       73,617  
Huaneng Power International Inc., Class A     24,800       16,675  
Huaneng Power International Inc., Class H     248,000       99,925  
Huatai Securities Co. Ltd., Class A     49,600       131,624  
Huatai Securities Co. Ltd., Class H(b)     99,200       172,355  
Huaxia Bank Co. Ltd., Class A     99,200       98,630  
Huaxin Cement Co. Ltd., Class A     12,400       43,266  
Huayu Automotive Systems Co. Ltd., Class A     13,099       52,751  
Huazhu Group Ltd., ADR     11,160       376,650  
Hubei Biocause Pharmaceutical Co. Ltd., Class A     62,000       52,863  
Hubei Energy Group Co. Ltd., Class A     99,200       52,082  
Hunan Valin Steel Co. Ltd., Class A(a)     37,200       21,127  
Hutchison China MediTech Ltd., ADR(a)     6,448       150,367  
HUYA Inc., ADR(a)(c)     5,084       100,714  
Iflytek Co. Ltd., Class A     12,400       68,455  
Industrial & Commercial Bank of China Ltd., Class A     297,600       225,642  
Industrial & Commercial Bank of China Ltd., Class H     5,208,050       3,562,008  
Industrial Bank Co. Ltd., Class A     99,200       245,367  
Industrial Securities Co. Ltd., Class A     37,200       36,773  
Inner Mongolia BaoTou Steel Union Co. Ltd., Class A     310,000       51,887  
Inner Mongolia Junzheng Energy & Chemical Industry Group Co. Ltd., Class A(a)     49,600       19,158  
Inner Mongolia MengDian HuaNeng Thermal Power Corp. Ltd., Class A     61,407       24,773  
Inner Mongolia Yili Industrial Group Co. Ltd., Class A     37,200       153,851  
Inner Mongolia Yitai Coal Co. Ltd., Class B     111,600       76,558  
Innovent Biologics Inc.(a)(b)     62,000       283,227  
Inspur Electronic Information Industry Co. Ltd., Class A     11,828       71,152  
iQIYI Inc., ADR(a)(c)     11,532       258,663  
JD.com Inc., ADR(a)(c)     62,000       2,387,620  
Jiangsu Hengrui Medicine Co. Ltd., Class A     24,800       298,337  
Jiangsu King's Luck Brewery JSC Ltd., Class A     12,400       52,330  
Jiangsu Yanghe Brewery Joint-Stock Co. Ltd., Class A     12,400       172,744  
Jiangsu Zhongnan Construction Group Co. Ltd., Class A     24,800       29,447  
Jiangsu Zhongtian Technology Co. Ltd., Class A     24,800       29,873  
Jiangxi Copper Co. Ltd., Class A     12,400       24,285  
Jiangxi Copper Co. Ltd., Class H     124,000       145,432  
Jiangxi Zhengbang Technology Co. Ltd., Class A     12,400       26,822  
Jinke Properties Group Co. Ltd., Class A     24,800       26,715  
JOYY Inc.(a)(c)     5,208       281,076  
Kaisa Group Holdings Ltd.     248,000       110,108  
Kingboard Holdings Ltd.     62,000       163,890  
Kingboard Laminates Holdings Ltd.     124,000       123,633  
Kingdee International Software Group Co. Ltd.(c)     248,000       317,278  
Kingsoft Corp. Ltd.(a)(c)     124,000       400,973  
Kunlun Energy Co. Ltd.     248,000       173,118  
Kweichow Moutai Co. Ltd., Class A     5,300       801,422  
KWG Group Holdings Ltd.     124,000       181,711  
Lee & Man Paper Manufacturing Ltd.     124,000       96,743  
Legend Holdings Corp., Class H(b)     37,200       63,965  
Lenovo Group Ltd.     496,000       306,139  
Lens Technology Co. Ltd., Class A     12,400       34,538  
Lepu Medical Technology Beijing Co. Ltd., Class A     12,400       60,845  

 



 

C o n s o l i d a t e d   S c h e d u l e   o f   I n v e s t m e n t s 35

 

 

 

 

 

Consolidated Schedule of Investments (unaudited) (continued) iShares® MSCI BRIC ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
China (continued)                
Li Ning Co. Ltd.     186,000   $ 489,282  
Lingyi iTech Guangdong Co., Class A(a)     24,800       40,197  
Longfor Group Holdings Ltd.(b)     124,000       573,614  
LONGi Green Energy Technology Co. Ltd., Class A     24,800       108,918  
Luckin Coffee Inc., ADR(a)     6,820       269,799  
Luxshare Precision Industry Co. Ltd., Class A     36,641       250,556  
Luye Pharma Group Ltd.(b)     124,000       75,580  
Luzhou Laojiao Co. Ltd., Class A     12,400       132,689  
Maanshan Iron & Steel Co. Ltd., Class A     62,000       24,569  
Mango Excellent Media Co. Ltd., Class A(a)     12,400       78,176  
Meinian Onehealth Healthcare Holdings Co. Ltd., Class A     17,153       32,317  
Meituan Dianping, Class B(a)     86,800       1,101,561  
Metallurgical Corp. of China Ltd., Class A     198,400       77,201  
Metallurgical Corp. of China Ltd., Class H     372,000       72,080  
Momo Inc., ADR     10,540       296,385  
Muyuan Foodstuff Co. Ltd., Class A     12,400       206,661  
NanJi E-Commerce Co. Ltd., Class A(a)     12,400       17,331  
Nanjing Iron & Steel Co. Ltd., Class A     49,600       21,855  
Nanjing Securities Co. Ltd., Class A     24,800       47,931  
NARI Technology Co. Ltd., Class A     24,800       70,353  
NavInfo Co. Ltd., Class A     12,400       30,369  
NetEase Inc., ADR     5,828       1,857,442  
New China Life Insurance Co. Ltd., Class A     12,400       78,371  
New China Life Insurance Co. Ltd., Class H     37,200       141,534  
New Hope Liuhe Co. Ltd., Class A     24,800       85,857  
New Oriental Education & Technology Group Inc., ADR(a)     11,780       1,506,544  
Nexteer Automotive Group Ltd.     124,000       91,333  
Nine Dragons Paper Holdings Ltd.     124,000       146,387  
Ningbo Zhoushan Port Co. Ltd., Class A     49,600       23,345  
NIO Inc., ADR(a)(c)     49,352       203,824  
Noah Holdings Ltd.(a)(c)     3,100       87,978  
Oceanwide Holdings Co. Ltd., Class A     37,200       22,458  
Offshore Oil Engineering Co. Ltd., Class A     20,324       16,893  
OFILM Group Co. Ltd., Class A(a)     12,400       32,817  
Orient Securities Co. Ltd., Class A     37,200       53,058  
Pacific Securities Co. Ltd. (The), Class A(a)     49,600       25,473  
Pangang Group Vanadium Titanium & Resources Co. Ltd., Class A(a)     62,000       21,198  
People's Insurance Co. Group of China Ltd. (The), Class A     37,200       36,028  
People's Insurance Co. Group of China Ltd. (The), Class H     620,000       219,580  
Perfect World Co. Ltd., Class A     12,400       90,558  
PetroChina Co. Ltd., Class A     62,000       44,969  
PetroChina Co. Ltd., Class H     1,488,000       576,637  
PICC Property & Casualty Co. Ltd., Class H     496,322       513,960  
Pinduoduo Inc., ADR(a)     15,996       572,337  
Ping An Bank Co. Ltd., Class A     86,800       180,052  
Ping An Healthcare and Technology Co. Ltd.(a)(b)     24,800       242,334  
Ping An Insurance Group Co. of China Ltd., Class A     49,600       551,474  
Ping An Insurance Group Co. of China Ltd., Class H     496,000       5,514,965  
Poly Developments and Holdings Group Co. Ltd., Class A     62,000       143,598  
Postal Savings Bank of China Co. Ltd., Class H(b)     620,000       391,426  
Power Construction Corp. of China Ltd., Class A     124,000       75,391  
RiseSun Real Estate Development Co. Ltd., Class A     24,800       30,369  
Rongsheng Petro Chemical Co. Ltd., Class A     37,200       55,080  
SAIC Motor Corp. Ltd., Class A     37,200       118,196  
Sanan Optoelectronics Co. Ltd., Class A     24,894       87,785  
Security   Shares     Value  
             
China (continued)                
Sany Heavy Industry Co. Ltd., Class A     49,053     $ 122,313  
SDIC Capital Co. Ltd., Class A     24,800       45,980  
SDIC Power Holdings Co. Ltd., Class A     49,699       53,750  
Sealand Securities Co. Ltd., Class A     44,400       29,282  
Seazen Group Ltd.     248,000       254,904  
Seazen Holdings Co. Ltd., Class A     12,400       56,943  
Semiconductor Manufacturing International Corp.(a)(c)     248,200       480,918  
SF Holding Co. Ltd., Class A     12,400       86,833  
Shaanxi Coal Industry Co. Ltd., Class A     49,005       55,383  
Shandong Gold Mining Co. Ltd., Class A     12,400       60,171  
Shandong Hualu Hengsheng Chemical Co. Ltd., Class A     12,400       29,944  
Shandong Nanshan Aluminum Co. Ltd., Class A     74,400       22,564  
Shandong Weigao Group Medical Polymer Co. Ltd., Class H     184,000       237,052  
Shandong Xinchao Energy Corp. Ltd., Class A(a)     136,400       37,270  
Shanghai 2345 Network Holding Group Co. Ltd., Class A     86,885       39,277  
Shanghai Construction Group Co. Ltd., Class A     49,600       23,770  
Shanghai Electric Group Co. Ltd., Class A     124,000       79,649  
Shanghai Fosun Pharmaceutical Group Co. Ltd., Class A     12,400       47,683  
Shanghai Fosun Pharmaceutical Group Co. Ltd., Class H     65,500       184,488  
Shanghai International Port Group Co. Ltd., Class A     49,600       32,214  
Shanghai Lujiazui Finance & Trade Zone Development  Co. Ltd., Class B     99,276       78,627  
Shanghai Pharmaceuticals Holding Co. Ltd., Class A     12,400       33,119  
Shanghai Pharmaceuticals Holding Co. Ltd., Class H.     99,200       181,520  
Shanghai Pudong Development Bank Co. Ltd., Class A     148,800       230,963  
Shanghai RAAS Blood Products Co. Ltd., Class A(a)     37,200       48,481  
Shanghai Tunnel Engineering Co. Ltd., Class A     24,800       19,868  
Shanghai Yuyuan Tourist Mart Group Co. Ltd., Class A     24,800       24,977  
Shanxi Lu'an Environmental Energy Development Co. Ltd., Class A     24,252       21,025  
Shanxi Meijin Energy Co. Ltd., Class A(a)     24,800       29,589  
Shanxi Securities Co. Ltd., Class A     24,800       27,886  
Shanxi Taigang Stainless Steel Co. Ltd., Class A     37,200       18,733  
Shanxi Xishan Coal & Electricity Power Co. Ltd., Class A     24,800       17,952  
Shanying International Holding Co. Ltd., Class A(a)     49,600       24,054  
Shenergy Co. Ltd., Class A     49,600       37,394  
Shengyi Technology Co. Ltd., Class A     12,400       54,725  
Shenwan Hongyuan Group Co. Ltd., Class A     148,899       99,689  
Shenzhen Energy Group Co. Ltd., Class A     74,400       57,794  
Shenzhen Inovance Technology Co. Ltd., Class A     11,898       48,186  
Shenzhen International Holdings Ltd.     62,000       118,701  
Shenzhen Investment Ltd.     248,000       83,377  
Shenzhen Overseas Chinese Town Co. Ltd., Class A     62,000       57,918  
Shenzhen Zhongjin Lingnan Nonfemet Co. Ltd., Class A     37,200       19,690  
Shenzhou International Group Holdings Ltd.     62,000       761,768  
Shimao Property Holdings Ltd.     124,000       443,934  
Shui On Land Ltd.     372,000       73,989  
Sichuan Chuantou Energy Co. Ltd., Class A     36,605       47,915  
Sichuan Hebang Biotechnology Co. Ltd., Class A(a)     111,600       26,183  
Sichuan Kelun Pharmaceutical Co. Ltd., Class A     12,400       40,711  
Sichuan Languang Development Co. Ltd., Class A     24,800       23,025  
SINA Corp.(a)     5,704       186,806  
Sino Biopharmaceutical Ltd.(c)     620,000       897,415  
Sinolink Securities Co. Ltd., Class A     24,800       35,478  
Sino-Ocean Group Holding Ltd.     124,000       45,030  
Sinopec Engineering Group Co. Ltd., Class H     124,000       61,419  
Sinopec Shanghai Petrochemical Co. Ltd., Class A     49,600       28,383  
Sinopec Shanghai Petrochemical Co. Ltd., Class H     249,000       63,584  

 



 

36 2 0 2 0   i  S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

 

 

Consolidated Schedule of Investments (unaudited) (continued) iShares® MSCI BRIC ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
China (continued)                
Sinopharm Group Co. Ltd., Class H     99,200     $ 306,139  
Sinotrans Ltd., Class A     37,200       19,052  
Sinotrans Ltd., Class H     248,000       70,011  
Sinotruk Hong Kong Ltd.     62,000       118,542  
SOHO China Ltd.     186,000       67,306  
Songcheng Performance Development Co. Ltd., Class A     12,400       48,924  
SooChow Securities Co. Ltd., Class A     24,800       32,888  
Southwest Securities Co. Ltd., Class A     37,200       26,715  
SSY Group Ltd.     248,000       207,806  
Sun Art Retail Group Ltd.     248,000       316,959  
Sunac China Holdings Ltd.     248,000       1,352,487  
Suning.com Co. Ltd., Class A     49,600       65,848  
Sunny Optical Technology Group Co. Ltd.     62,000       964,244  
Suzhou Dongshan Precision Manufacturing Co. Ltd., Class A     12,400       50,202  
TAL Education Group, ADR(a)     32,736       1,780,511  
TangShan Port Group Co. Ltd., Class A     62,000       20,489  
TBEA Co. Ltd., Class A     24,800       22,103  
TCL Technology Group Corp., Class A     99,200       83,445  
Tencent Holdings Ltd.     471,200       23,339,155  
Tencent Music Entertainment Group, ADR(a)     9,300       112,809  
Tian Di Science & Technology Co. Ltd., Class A     49,600       21,713  
Tianjin Zhonghuan Semiconductor Co. Ltd., Class A     12,400       31,185  
Tianma Microelectronics Co. Ltd., Class A     12,400       28,737  
Tingyi Cayman Islands Holding Corp.     248,000       451,253  
Tonghua Dongbao Pharmaceutical Co. Ltd., Class A     12,400       20,223  
Tongling Nonferrous Metals Group Co. Ltd., Class A     74,400       21,926  
Tongwei Co. Ltd., Class A     24,895       61,434  
Towngas China Co. Ltd.     124,000       71,920  
Transfar Zhilian Co. Ltd., Class A     24,800       22,067  
TravelSky Technology Ltd., Class H     124,000       242,493  
Trip.com Group Ltd., ADR(a)     38,936       1,182,097  
Tsingtao Brewery Co. Ltd., Class H     24,000       124,727  
Uni-President China Holdings Ltd.     124,000       127,929  
Unisplendour Corp. Ltd., Class A     12,400       80,571  
Vipshop Holdings Ltd., ADR(a)     36,952       474,094  
Walvax Biotechnology Co. Ltd., Class A     12,400       50,734  
Wanda Film Holding Co. Ltd., Class A(a)     12,400       28,737  
Wanhua Chemical Group Co. Ltd., Class A     12,400       83,445  
Want Want China Holdings Ltd.     372,000       287,364  
Wanxiang Qianchao Co. Ltd., Class A     86,827       69,559  
Weibo Corp., ADR(a)(c)     5,084       214,240  
Weichai Power Co. Ltd., Class A     49,600       101,681  
Weichai Power Co. Ltd., Class H     124,100       244,281  
Wens Foodstuffs Group Co. Ltd., Class A     24,800       115,411  
Western Securities Co. Ltd., Class A     49,600       67,196  
Wharf Holdings Ltd. (The)     124,000       261,587  
Winning Health Technology Group Co. Ltd., Class A     12,400       45,625  
Wuhu Sanqi Interactive Entertainment Network Technology Group Co. Ltd., Class A     12,400       60,065  
Wuliangye Yibin Co. Ltd., Class A     24,800       427,868  
WUS Printed Circuit Kunshan Co. Ltd., Class A     12,400       46,299  
WuXi AppTec Co. Ltd., Class A     12,400       188,035  
WuXi AppTec Co. Ltd., Class H(b)     15,840       233,543  
Wuxi Biologics Cayman Inc.(a)(b)     62,000       906,962  
XCMG Construction Machinery Co. Ltd., Class A     49,600       37,394  
Xiamen C & D Inc., Class A     24,800       27,212  
Xiaomi Corp., Class B(a)(b)     868,000       1,398,949  
Xinhu Zhongbao Co. Ltd., Class A     49,600       22,351  
Security   Shares     Value  
             
China (continued)                
Xinjiang Goldwind Science & Technology Co. Ltd., Class A     37,253     $ 56,064  
Xinjiang Goldwind Science & Technology Co. Ltd., Class H     30,234       30,028  
Xinxing Ductile Iron Pipes Co. Ltd., Class A     37,200       18,945  
Xinyi Solar Holdings Ltd.     312,000       247,020  
Xinyu Iron & Steel Co. Ltd., Class A     37,200       22,671  
Yango Group Co. Ltd., Class A     24,800       28,418  
Yanzhou Coal Mining Co. Ltd., Class H     248,000       188,075  
Yonghui Superstores Co. Ltd., Class A     49,693       61,137  
Yonyou Network Technology Co. Ltd., Class A     12,400       81,706  
Yuexiu Property Co. Ltd.     496,000       101,198  
Yum China Holdings Inc..     29,264       1,281,471  
Yunda Holding Co. Ltd., Class A     12,400       52,472  
Yunnan Baiyao Group Co. Ltd., Class A     11,820       133,060  
Yuzhou Properties Co. Ltd.     124,000       60,782  
Zai Lab Ltd., ADR(a)     3,720       204,488  
Zhaojin Mining Industry Co. Ltd., Class H     62,000       73,909  
Zhejiang Chint Electrics Co. Ltd., Class A     12,400       47,842  
Zhejiang Dahua Technology Co. Ltd., Class A     24,800       68,757  
Zhejiang Juhua Co. Ltd., Class A     24,800       29,270  
Zhejiang Longsheng Group Co. Ltd., Class A     12,400       22,919  
Zhejiang NHU Co. Ltd., Class A     24,230       83,537  
Zhejiang Sanhua Intelligent Controls Co. Ltd., Class A     12,400       35,265  
Zhengzhou Yutong Bus Co. Ltd., Class A     12,400       26,751  
Zhenro Properties Group Ltd.     124,000       80,672  
Zheshang Securities Co. Ltd., Class A     24,800       37,394  
ZhongAn Online P&C Insurance Co. Ltd., Class H(a)(b)(c)     24,800       104,380  
Zhongjin Gold Corp. Ltd., Class A     24,800       28,773  
Zhongsheng Group Holdings Ltd.(c)     62,000       235,890  
Zhuzhou CRRC Times Electric Co. Ltd., Class H     49,600       173,437  
Zijin Mining Group Co. Ltd., Class A     86,800       51,656  
Zijin Mining Group Co. Ltd., Class H     527,000       236,685  
Zoomlion Heavy Industry Science and Technology Co. Ltd., Class A     24,000       21,562  
Zoomlion Heavy Industry Science and Technology Co. Ltd., Class H.     95,200       78,915  
ZTE Corp., Class A(a)     12,400       88,696  
ZTE Corp., Class H(a)     74,448       308,088  
ZTO Express Cayman Inc., ADR     26,660       625,444  
              170,521,989
India — 15.7%                
Adani Ports & Special Economic Zone Ltd.     48,485       229,903  
Ambuja Cements Ltd.     46,996       133,530  
Ashok Leyland Ltd.     112,592       109,054  
Asian Paints Ltd.     24,180       602,410  
Aurobindo Pharma Ltd.     21,204       148,524  
Avenue Supermarts Ltd.(a)(b)     10,292       331,425  
Axis Bank Ltd.     171,616       1,658,196  
Bajaj Auto Ltd.     6,696       268,146  
Bajaj Finance Ltd.     14,260       882,434  
Bajaj Finserv Ltd.     3,348       419,883  
Bandhan Bank Ltd.(b)     34,472       183,185  
Berger Paints India Ltd.     18,476       145,046  
Bharat Forge Ltd.     19,592       118,202  
Bharat Petroleum Corp. Ltd.     54,312       320,864  
Bharti Airtel Ltd.(a)     203,732       1,477,863  
Bharti Infratel Ltd.     31,124       92,487  
Bosch Ltd.     744       125,036  
Britannia Industries Ltd.     4,216       173,518  

 



 

C o n s o l i d a t e d   S c h e d u l e   o f   I n v e s t m e n t s 37

 

 

 

 

 

Consolidated Schedule of Investments (unaudited) (continued) iShares® MSCI BRIC ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
India (continued)                
Cipla Ltd.     28,520     $ 158,907  
Coal India Ltd.     99,944       233,215  
Colgate-Palmolive India Ltd.     4,836       86,136  
Container Corp. of India Ltd.     18,352       129,603  
Dabur India Ltd.     46,996       323,064  
Divi's Laboratories Ltd.     6,572       191,871  
DLF Ltd.     46,996       131,348  
Dr. Reddy's Laboratories Ltd.     8,308       336,971  
Eicher Motors Ltd.     1,116       256,739  
GAIL India Ltd.     119,164       172,387  
Godrej Consumer Products Ltd.     28,892       224,394  
Grasim Industries Ltd.     22,196       211,357  
Havells India Ltd.     23,312       198,031  
HCL Technologies Ltd.     90,520       670,237  
HDFC Asset Management Co. Ltd.(b)     3,596       156,531  
HDFC Life Insurance Co. Ltd.(b)     43,648       329,080  
Hero MotoCorp Ltd.     7,812       222,098  
Hindalco Industries Ltd.     78,009       168,519  
Hindustan Petroleum Corp. Ltd.     50,096       137,132  
Hindustan Unilever Ltd.     54,312       1,636,679  
Housing Development Finance Corp. Ltd.     133,796       4,033,764  
ICICI Bank Ltd.     397,792       2,740,875  
ICICI Lombard General Insurance Co. Ltd.(b)     14,508       248,607  
ICICI Prudential Life Insurance Co. Ltd.(b)     25,916       169,284  
Indian Oil Corp. Ltd.     153,140       224,402  
Info Edge India Ltd.     4,836       173,782  
Infosys Ltd.     282,472       2,863,959  
InterGlobe Aviation Ltd.(b)     8,680       156,364  
ITC Ltd.     280,364       767,463  
JSW Steel Ltd.     66,836       218,287  
Larsen & Toubro Ltd.     39,184       644,791  
LIC Housing Finance Ltd.     24,304       107,851  
Lupin Ltd.     20,088       178,146  
Mahindra & Mahindra Financial Services Ltd.     27,776       132,111  
Mahindra & Mahindra Ltd.     54,188       343,183  
Marico Ltd.     36,704       151,943  
Maruti Suzuki India Ltd.     8,556       744,909  
Motherson Sumi Systems Ltd.     78,120       112,199  
Nestle India Ltd.     1,984       433,786  
NTPC Ltd.     186,248       274,981  
Oil & Natural Gas Corp. Ltd.     194,556       247,888  
Page Industries Ltd.     496       152,208  
Petronet LNG Ltd.     48,236       164,156  
Pidilite Industries Ltd.     10,664       223,587  
Piramal Enterprises Ltd.     7,068       127,962  
Power Grid Corp. of India Ltd.     145,948       367,057  
REC Ltd.     63,984       104,442  
Reliance Industries Ltd.     236,220       4,348,962  
SBI Life Insurance Co. Ltd.(b)     28,148       347,289  
Shree Cement Ltd.     744       233,723  
Shriram Transport Finance Co. Ltd.     14,260       236,384  
Siemens Ltd.     5,580       100,806  
State Bank of India(a)     143,840       603,922  
Sun Pharmaceutical Industries Ltd.     70,308       363,292  
Tata Consultancy Services Ltd.     75,392       2,089,518  
Tata Motors Ltd.(a)     131,564       235,081  
Tata Power Co. Ltd. (The)     71,796       46,460  
Tata Steel Ltd.     16,244       85,927  
Tech Mahindra Ltd.     38,440       396,504  
Titan Co. Ltd.     25,916       450,502  
Security   Shares     Value  
             
India (continued)                
UltraTech Cement Ltd.     8,060     $ 471,264  
United Spirits Ltd.(a)     23,188       220,530  
UPL Ltd.     45,136       325,038  
Vedanta Ltd.     111,972       176,878  
Wipro Ltd.     94,612       290,322  
Zee Entertainment Enterprises Ltd.     64,108       212,576  
              40,736,970  
Russia — 6.3%                
Alrosa PJSC     215,760       229,213  
Gazprom PJSC     869,244       2,621,314  
Inter RAO UES PJSC     3,224,000       249,668  
LUKOIL PJSC     34,472       2,923,708  
Magnit PJSC, GDR(f)     24,990       272,141  
Magnitogorsk Iron & Steel Works PJSC     272,800       162,320  
MMC Norilsk Nickel PJSC     5,208       1,569,375  
Mobile TeleSystems PJSC, ADR     41,044       398,127  
Moscow Exchange MICEX-RTS PJSC     108,290       159,663  
Novatek PJSC, GDR(f)     7,812       1,119,459  
Novolipetsk Steel PJSC     91,760       170,603  
PhosAgro PJSC, GDR(f)     11,904       131,063  
Polymetal International PLC     13,685       208,757  
Polyus PJSC     2,142       269,790  
Rosneft Oil Co. PJSC     90,682       544,362  
Sberbank of Russia PJSC     883,930       3,069,552  
Severstal PJSC     13,020       157,829  
Surgutneftegas PJSC     582,810       333,338  
Tatneft PJSC     128,092       1,280,157  
VTB Bank PJSC     230,366,001       148,538  
X5 Retail Group NV, GDR(f)     10,664       328,569  
              16,347,546  
                 
Total Common Stocks — 95.9%                
(Cost: $251,742,387)             249,268,588  
                 
Preferred Stocks                
                 
Brazil — 3.6%                
Banco Bradesco SA, Preference Shares, NVS     310,002       2,097,760  
Braskem SA, Class A, Preference Shares, NVS     12,400       73,906  
Centrais Eletricas Brasileiras SA, Class B, Preference  Shares, NVS     12,482       99,183  
Cia. Brasileira de Distribuicao, Preference Shares, NVS     12,756       203,880  
Cia. Energetica de Minas Gerais, Preference  Shares, NVS     74,487       230,478  
Gerdau SA, Preference Shares, NVS     86,800       325,718  
Itau Unibanco Holding SA, Preference Shares, NVS     396,856       2,814,800  
Itausa-Investimentos Itau SA, Preference Shares, NVS     334,844       891,354  
Lojas Americanas SA, Preference Shares, NVS     62,390       367,842  
Petroleo Brasileiro SA, Preference Shares, NVS     340,814       1,914,206  
Telefonica Brasil SA, Preference Shares, NVS     37,264       440,892  
              9,460,019  
Russia — 0.2%                
Surgutneftegas PJSC, Preference Shares, NVS     570,400       278,155  
Transneft PJSC, Preference Shares, NVS     38       85,868  
              364,023  
                 
Total Preferred Stocks — 3.8%                
(Cost: $8,773,429)             9,824,042  

 



 

38 2 0 2 0   i  S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

 

Consolidated Schedule of Investments (unaudited) (continued) iShares® MSCI BRIC ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
Rights            
             
China — 0.0%            
Legend Holdings Corp. Class H, (Expires 04/16/20)(a)     2,030     $ 0 (e)
                 
Total Rights — 0.0%                
(Cost: $0)             0 (e)
                 
Short-Term Investments                
                 
Money Market Funds — 2.2%                
BlackRock Cash Funds: Institutional, SL Agency Shares, 1.74%(g)(h)(i)     5,370,787       5,374,547  
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52%(g)(h)     383,000       383,000  
              5,757,547  
                 
Total Short-Term Investments — 2.2%                
(Cost: $5,756,148)             5,757,547  
                 
Total Investments in Securities — 101.9%                
(Cost: $266,271,964)             264,850,177  
                 
Other Assets, Less Liabilities — (1.9)%             (4,877,276 )
                 
Net Assets — 100.0%           $ 259,972,901  
(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) All or a portion of this security is on loan.
(d) Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.
(e) Rounds to less than $1.
(f) This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933.
(g) Affiliate of the Fund.
(h) Annualized 7-day yield as of period-end.
(i) All or a portion of this security was purchased with cash collateral received from loaned securities.


 

Affiliates 

 

Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940Act, were as follows:

 

Affiliated Issuer   Shares Held at 08/31/19     Net Activity    

Shares

Held at 02/29/20

    Value at 02/29/20     Income     Net Realized Gain (Loss)(a)     Change in Unrealized Appreciation (Depreciation)  
BlackRock Cash Funds: Institutional, SL Agency Shares   4,935,586     435,201     5,370,787     $ 5,374,547     $ 31,596 (b)   $ (293 )   $ 1,175  
BlackRock Cash Funds: Treasury, SL Agency Shares   181,000     202,000     383,000       383,000       2,716              
                      $ 5,757,547     $ 34,312     $ (293 )   $ 1,175  

 

(a) Includes realized capital gain distributions from an affiliated fund, if any.
(b) Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

 

Futures Contracts

 

Description   Number of Contracts       Expiration Date     Notional Amount (000)     Value/ Unrealized Appreciation (Depreciation)  
Long Contracts                                
Hang Seng China Enterprises Index     4       03/30/20     $ 266     $ (3,651 )
MSCI Emerging Markets E-Mini     11       03/20/20       555       (21,695 )
                            $ (25,346 )

 

C o n s o l i d a t e d   S c h e d u l e   o f   I n v e s t m e n t s 39

 

 

 

 

Consolidated Schedule of Investments (unaudited) (continued) iShares® MSCI BRIC ETF
February 29, 2020  

 

Derivative Financial Instruments Categorized by Risk Exposure

 

As of February 29, 2020, the fair values of derivative financial instruments located in the Consolidated Statements of Assets and Liabilities were as follows:

 

    Equity  
    Contracts  
Liabilities — Derivative Financial Instruments        
Futures contracts        
Unrealized depreciation on futures contracts(a)   $ 25,346  

 

(a)

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

 

For the six months ended February 29, 2020, the effect of derivative financial instruments in the Consolidated Statements of Operations was as follows:

 

  Equity  
    Contracts  
Net Realized Gain (Loss) from:        
Futures contracts   $ 62,114  
         
Net Change in Unrealized Appreciation (Depreciation) on:        
Futures contracts   $ (33,115 )

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:      
Average notional value of contracts — long   $ 509,197  

 

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

 

Fair Value Measurements 

 

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

 

The following table summarizes the value of the Fund's investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund's investments into major categories is disclosed in the Consolidated Schedule of Investments above.

 

    Level 1     Level 2     Level 3     Total  
Investments                        
Assets                        
Common Stocks   $ 249,268,489     $     $ 99     $ 249,268,588  
Preferred Stocks     9,824,042                   9,824,042  
Rights           0 (a)           0 (a)
Money Market Funds     5,757,547                   5,757,547  
    $ 264,850,078     $ 0 (a)   $ 99     $ 264,850,177  
Derivative financial instruments(b)                                
Liabilities                                
Futures Contracts   $ (25,346 )   $     $     $ (25,346 )

 

(a) Rounds to less than $1.
(b) Shown at the unrealized appreciation (depreciation) on the contracts.

 

See notes to consolidated financial statements

 

40 2 0 2 0   i  S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

 

Consolidated Schedule of Investments (unaudited) iShares® MSCI Emerging Markets Asia ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
Common Stocks                
                 
China — 46.8%                
360 Security Technology Inc., Class A     8,199     $ 26,215  
3SBio Inc.(a)(b)     182,500       189,220  
51job Inc., ADR(b)(c)     3,489       260,873  
58.com Inc., ADR(b)(c)     11,748       648,137  
AAC Technologies Holdings Inc.(c)     93,500       612,491  
AECC Aviation Power Co. Ltd., Class A     14,700       48,578  
Agile Group Holdings Ltd.     192,000       269,532  
Agricultural Bank of China Ltd., Class A     460,500       224,644  
Agricultural Bank of China Ltd., Class H     3,388,000       1,356,409  
Aier Eye Hospital Group Co. Ltd., Class A     16,100       92,129  
Air China Ltd., Class A     20,400       21,771  
Air China Ltd., Class H     280,000       225,278  
Aisino Corp., Class A     21,100       71,237  
Alibaba Group Holding Ltd., ADR(b)     166,541       34,640,528  
Alibaba Health Information Technology Ltd.(b)     22,000       42,176  
Alibaba Pictures Group Ltd.(b)(c)     1,850,000       249,261  
A-Living Services Co. Ltd., Class H(a)     36,250       162,340  
Aluminum Corp. of China Ltd., Class A(b)     51,600       22,588  
Aluminum Corp. of China Ltd., Class H(b)     532,000       141,311  
Angang Steel Co. Ltd., Class A     86,760       35,497  
Anhui Conch Cement Co. Ltd., Class A     19,700       154,608  
Anhui Conch Cement Co. Ltd., Class H     155,000       1,136,686  
ANTA Sports Products Ltd.     135,000       1,085,294  
Anxin Trust Co. Ltd., Class A(b)     40,100       17,152  
Autohome Inc., ADR(b)     7,574       588,273  
AVIC Aircraft Co. Ltd., Class A     17,000       41,368  
Avic Capital Co. Ltd., Class A     85,700       52,228  
AVIC Shenyang Aircraft Co. Ltd., Class A(b)     6,300       25,055  
AviChina Industry & Technology Co. Ltd., Class H     343,000       149,206  
BAIC BluePark New Energy Technology Co. Ltd.,                
Class A(b)     31,600       29,068  
BAIC Motor Corp. Ltd., Class H(a)     199,500       97,791  
Baidu Inc., ADR(b)     34,448       4,133,071  
Bank of Beijing Co. Ltd., Class A     75,000       54,827  
Bank of Chengdu Co. Ltd., Class A     19,900       23,259  
Bank of China Ltd., Class A     175,100       88,925  
Bank of China Ltd., Class H     9,747,000       3,852,248  
Bank of Communications Co. Ltd., Class A     202,200       150,416  
Bank of Communications Co. Ltd., Class H     1,062,000       681,376  
Bank of Guiyang Co. Ltd., Class A     44,900       53,956  
Bank of Hangzhou Co. Ltd., Class A     44,700       54,930  
Bank of Jiangsu Co. Ltd., Class A     71,199       64,984  
Bank of Nanjing Co. Ltd., Class A     57,700       64,054  
Bank of Ningbo Co. Ltd., Class A     28,800       103,661  
Bank of Shanghai Co. Ltd., Class A     68,770       84,706  
Baoshan Iron & Steel Co. Ltd., Class A     82,600       61,446  
Baozun Inc., ADR(b)(c)     5,267       167,069  
BBMG Corp., Class A     54,000       26,034  
BBMG Corp., Class H     457,000       128,426  
Beijing Capital International Airport Co. Ltd., Class H     266,000       207,529  
Beijing Dabeinong Technology Group Co. Ltd., Class A     39,200       38,414  
Beijing Enterprises Holdings Ltd.     65,000       274,411  
Beijing Enterprises Water Group Ltd.     690,000       320,516  
Beijing Shiji Information Technology Co. Ltd., Class A     5,400       29,981  
Beijing Tongrentang Co. Ltd., Class     18,600       69,555  
Betta Pharmaceuticals Co. Ltd., Class A     2,600       30,016  
BOC Aviation Ltd.(a)     26,500       230,042  
BOE Technology Group Co. Ltd., Class A     214,000       150,010  
                 
Security   Shares     Value  
             
China (continued)                
Bosideng International Holdings Ltd.     444,000     $ 129,331  
Brilliance China Automotive Holdings Ltd.     380,000       321,825  
BYD Co. Ltd., Class A     10,300       96,322  
BYD Co. Ltd., Class H(c)     81,000       495,788  
BYD Electronic International Co. Ltd.     92,500       173,295  
Caitong Securities Co. Ltd., Class A     54,700       86,860  
CGN Power Co. Ltd., Class H(a)     1,271,000       309,879  
Changjiang Securities Co. Ltd., Class A     56,700       54,671  
Chaozhou Three-Circle Group Co. Ltd., Class A     10,799       36,768  
Chengdu Kanghong Pharmaceutical Group Co. Ltd.,                
Class A     4,900       23,202  
China Agri-Industries Holdings Ltd.     337,000       182,921  
China Aoyuan Group Ltd.     164,000       236,118  
China Avionics Systems Co. Ltd., Class A     12,900       26,076  
China Cinda Asset Management Co. Ltd., Class H     1,142,000       238,862  
China CITIC Bank Corp. Ltd., Class A     88,000       68,359  
China CITIC Bank Corp. Ltd., Class H     999,000       519,174  
China Coal Energy Co. Ltd., Class H     319,000       103,153  
China Communications Construction Co. Ltd., Class A     20,300       25,352  
China Communications Construction Co. Ltd., Class H     531,000       395,880  
China Communications Services Corp. Ltd., Class H     336,000       259,986  
China Conch Venture Holdings Ltd.     211,000       1,026,158  
China Construction Bank Corp., Class A     34,800       32,360  
China Construction Bank Corp., Class H     11,902,000       9,621,727  
China Eastern Airlines Corp. Ltd., Class A(b)     200,472       130,203  
China Education Group Holdings Ltd.     93,000       132,226  
China Everbright Bank Co. Ltd., Class A     228,100       123,347  
China Everbright Bank Co. Ltd., Class H     309,000       123,710  
China Everbright International Ltd.     467,481       311,332  
China Everbright Ltd.     122,000       203,515  
China Evergrande Group     234,000       525,468  
China Film Co. Ltd., Class A     13,300       24,297  
China First Capital Group Ltd.(b)     950,000       26,209  
China Fortune Land Development Co. Ltd., Class A     17,400       58,720  
China Galaxy Securities Co. Ltd., Class H     447,000       246,643  
China Gas Holdings Ltd.     223,600       817,729  
China Gezhouba Group Co. Ltd., Class A     37,600       35,770  
China Grand Automotive Services Group Co. Ltd., Class A     51,300       30,236  
China Hongqiao Group Ltd.     280,000       150,185  
China Huarong Asset Management Co. Ltd., Class H(a)     1,284,000       174,648  
China Huishan Dairy Holdings Co. Ltd.(b)(d)     20,200       39  
China International Capital Corp. Ltd., Class H(a)     172,800       318,856  
China International Marine Containers Group Co. Ltd., Class A     44,540       50,974  
China International Travel Service Corp. Ltd., Class A     10,500       117,915  
China Jinmao Holdings Group Ltd.     684,000       499,414  
China Life Insurance Co. Ltd., Class A     10,900       45,922  
China Life Insurance Co. Ltd., Class H     930,000       2,179,095  
China Literature Ltd.(a)(b)     6,400       28,949  
China Longyuan Power Group Corp. Ltd., Class H     404,000       211,512  
China Medical System Holdings Ltd.     177,000       218,040  
China Mengniu Dairy Co. Ltd.     344,000       1,233,766  
China Merchants Bank Co. Ltd., Class A     122,500       599,339  
China Merchants Bank Co. Ltd., Class H     484,831       2,286,337  
China Merchants Energy Shipping Co. Ltd., Class A     28,500       20,630  
China Merchants Port Holdings Co. Ltd.     178,000       261,756  
China Merchants Securities Co. Ltd., Class A     33,600       84,839  
China Merchants Shekou Industrial Zone Holdings Co. Ltd., Class A     32,800       81,364  
China Minsheng Banking Corp. Ltd., Class A     226,900       185,670  


 

 

C o n s o l i d a t e d   S c h e d u l e   o f   I n v e s t m e n t s 41

 

 

 

 

Consolidated Schedule of Investments (unaudited) (continued) iShares® MSCI Emerging Markets Asia ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
China (continued)                
China Minsheng Banking Corp. Ltd., Class H     819,160     $ 552,901  
China Mobile Ltd.     760,000       5,978,147  
China Molybdenum Co. Ltd., Class A     136,700       79,593  
China Molybdenum Co. Ltd., Class H     519,000       193,800  
China National Building Material Co. Ltd., Class H     492,000       568,830  
China National Chemical Engineering Co. Ltd., Class A     66,400       66,018  
China National Nuclear Power Co. Ltd., Class A     92,900       61,001  
China National Software & Service Co. Ltd., Class A     2,500       30,482  
China Northern Rare Earth Group High-Tech Co. Ltd., Class A     22,300       29,031  
China Oilfield Services Ltd., Class H     214,000       274,604  
China Overseas Land & Investment Ltd.     472,000       1,583,821  
China Pacific Insurance Group Co. Ltd., Class A     32,700       149,181  
China Pacific Insurance Group Co. Ltd., Class H     330,200       1,086,818  
China Petroleum & Chemical Corp., Class A     164,100       107,988  
China Petroleum & Chemical Corp., Class H     3,080,600       1,589,110  
China Power International Development Ltd.     632,000       117,592  
China Railway Construction Corp. Ltd., Class A     58,999       80,182  
China Railway Construction Corp. Ltd., Class H     244,000       279,285  
China Railway Group Ltd., Class A     101,000       77,590  
China Railway Group Ltd., Class H     454,000       256,331  
China Railway Signal & Communication Corp. Ltd., Class H(a)     284,000       145,771  
China Reinsurance Group Corp., Class H     676,000       91,949  
China Renewable Energy Investment Ltd.(b)(d)     2,513       0 (e)
China Resources Beer Holdings Co. Ltd.     182,000       843,085  
China Resources Cement Holdings Ltd.     332,000       417,926  
China Resources Gas Group Ltd.     110,000       549,079  
China Resources Land Ltd.     343,777       1,585,872  
China Resources Pharmaceutical Group Ltd.(a)     240,000       208,801  
China Resources Power Holdings Co. Ltd.     242,000       287,864  
China Resources Sanjiu Medical & Pharmaceutical Co. Ltd., Class A     14,100       66,161  
China Shenhua Energy Co. Ltd., Class A     25,400       58,139  
China Shenhua Energy Co. Ltd., Class H     415,500       720,842  
China Shipbuilding Industry Co. Ltd., Class A     121,099       76,399  
China South Publishing & Media Group Co. Ltd., Class A     14,899       23,957  
China Southern Airlines Co. Ltd., Class A     84,500       69,629  
China Southern Airlines Co. Ltd., Class H(c)     194,000       102,314  
China Spacesat Co. Ltd., Class A     15,300       74,440  
China State Construction Engineering Corp. Ltd., Class A     225,640       173,341  
China State Construction International Holdings Ltd.     264,000       213,760  
China Taiping Insurance Holdings Co. Ltd.     204,100       416,945  
China Telecom Corp. Ltd., Class H     1,740,000       654,198  
China Tower Corp. Ltd., Class H(a)     5,248,000       1,272,765  
China Traditional Chinese Medicine Holdings Co. Ltd.     364,000       191,504  
China Unicom Hong Kong Ltd.     752,000       593,452  
China United Network Communications Ltd., Class A     160,700       125,982  
China Vanke Co. Ltd., Class A     56,200       237,898  
China Vanke Co. Ltd., Class H     179,000       689,076  
China Yangtze Power Co. Ltd., Class A     117,300       285,774  
China Zhongwang Holdings Ltd.     236,800       79,611  
Chongqing Brewery Co. Ltd., Class A     3,499       22,805  
Chongqing Changan Automobile Co. Ltd., Class A     21,100       30,698  
Chongqing Rural Commercial Bank Co. Ltd., Class H     258,000       116,535  
Chongqing Zhifei Biological Products Co. Ltd., Class A     9,100       78,083  
CIFI Holdings Group Co. Ltd.     370,000       282,495  
CITIC Ltd.     705,000       782,524  
CITIC Securities Co. Ltd., Class A     59,700       199,848  
CITIC Securities Co. Ltd., Class H     241,500       516,279  
Security   Shares     Value  
             
China (continued)                
CNOOC Ltd.     2,218,000     $ 3,039,662  
Contemporary Amperex Technology Co. Ltd., Class A     11,700       227,081  
COSCO SHIPPING Development Co. Ltd., Class A     196,500       59,314  
COSCO SHIPPING Energy Transportation Co. Ltd., Class H     284,000       110,786  
COSCO SHIPPING Holdings Co. Ltd., Class A(b)     95,400       55,137  
COSCO SHIPPING Holdings Co. Ltd., Class H(b)     287,000       95,752  
COSCO SHIPPING Ports Ltd.     228,000       151,843  
Country Garden Holdings Co. Ltd.     938,828       1,243,249  
Country Garden Services Holdings Co. Ltd.     164,000       639,750  
CRRC Corp. Ltd., Class A     109,000       99,797  
CRRC Corp. Ltd., Class H     554,750       355,926  
CSPC Pharmaceutical Group Ltd.     584,000       1,330,909  
Dali Foods Group Co. Ltd.(a)     268,500       177,437  
Daqin Railway Co. Ltd., Class A     64,899       65,733  
Datang International Power Generation Co. Ltd., Class H     640,000       100,192  
DHC Software Co. Ltd., Class A     22,500       47,477  
Dong-E-E-Jiao Co. Ltd., Class A     5,300       23,338  
Dongfang Electric Corp. Ltd., Class A     20,000       26,466  
Dongfeng Motor Group Co. Ltd., Class H     356,000       281,399  
Dongxing Securities Co. Ltd., Class A     35,200       60,881  
East Money Information Co. Ltd., Class A     37,400       92,829  
ENN Energy Holdings Ltd.     98,700       1,093,634  
Everbright Securities Co. Ltd., Class A     45,100       76,648  
Fangda Carbon New Material Co. Ltd., Class A(b)     21,100       30,396  
Far East Horizon Ltd.     260,000       227,202  
Financial Street Holdings Co. Ltd., Class A     47,900       47,556  
First Capital Securities Co. Ltd., Class A     23,200       25,257  
Focus Media Information Technology Co. Ltd., Class A     78,400       59,892  
Foshan Haitian Flavouring & Food Co. Ltd., Class A     13,851       197,317  
Fosun International Ltd.     330,000       420,490  
Founder Securities Co. Ltd., Class A     77,000       80,633  
Foxconn Industrial Internet Co. Ltd., Class A     34,600       84,542  
Fuyao Glass Industry Group Co. Ltd., Class A     16,000       53,034  
Fuyao Glass Industry Group Co. Ltd., Class H(a)     72,000       205,568  
Ganfeng Lithium Co. Ltd., Class A     8,900       66,182  
G-Bits Network Technology Xiamen Co. Ltd., Class A     700       41,879  
GD Power Development Co. Ltd., Class A     93,000       27,939  
GDS Holdings Ltd., ADR(b)     7,918       459,006  
Geely Automobile Holdings Ltd.     618,000       1,099,118  
Gemdale Corp., Class A     28,800       58,917  
Genscript Biotech Corp.(b)(c)     120,000       249,761  
GF Securities Co. Ltd., Class A     58,600       121,556  
GF Securities Co. Ltd., Class H.     147,600       176,520  
Giant Network Group Co. Ltd., Class A     11,400       30,970  
GoerTek Inc., Class A     22,800       72,638  
GOME Retail Holdings Ltd.(b)(c)     1,713,000       175,849  
Great Wall Motor Co. Ltd., Class H     393,000       284,423  
Gree Electric Appliances Inc. of Zhuhai, Class A     15,600       132,116  
Greenland Holdings Corp. Ltd., Class A     49,200       41,104  
Greentown Service Group Co. Ltd.     152,000       189,974  
Guangdong HEC Technology Holding Co. Ltd., Class A     19,700       23,504  
Guangdong Investment Ltd.     362,000       680,052  
Guanghui Energy Co. Ltd., Class A     52,900       21,492  
Guangzhou Automobile Group Co. Ltd., Class A     15,300       23,748  
Guangzhou Automobile Group Co. Ltd., Class H     376,800       420,168  
Guangzhou Baiyunshan Pharmaceutical Holdings Co. Ltd., Class A     7,300       35,580  
Guangzhou Haige Communications Group Inc. Co., Class A     21,900       37,564  


 

 

42 2 0 2 0   i  S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

 

Consolidated Schedule of Investments (unaudited) (continued) iShares® MSCI Emerging Markets Asia ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
China (continued)                
Guangzhou R&F Properties Co. Ltd., Class H     164,800     $ 255,456  
Guosen Securities Co. Ltd., Class A     46,200       77,791  
Guotai Junan Securities Co. Ltd., Class A     27,700       67,366  
Guotai Junan Securities Co. Ltd., Class H(a)     105,400       176,094  
Guoyuan Securities Co. Ltd., Class A     47,000       60,648  
Haidilao International Holding Ltd.(a)(c)     51,000       208,436  
Haier Electronics Group Co. Ltd.     160,000       457,844  
Haier Smart Home Co. Ltd., Class A     29,100       70,854  
Haitian International Holdings Ltd.     83,000       162,740  
Haitong Securities Co. Ltd., Class A     66,800       135,794  
Haitong Securities Co. Ltd., Class H     328,400       352,713  
Hangzhou Hikvision Digital Technology Co. Ltd., Class A     46,100       230,823  
Hangzhou Robam Appliances Co. Ltd., Class A     5,600       24,851  
Hangzhou Tigermed Consulting Co. Ltd., Class A     8,500       93,023  
Henan Shuanghui Investment & Development Co. Ltd., Class A     11,300       54,963  
Hengan International Group Co. Ltd.     91,500       679,230  
Hengli Petrochemical Co. Ltd., Class A     44,200       94,215  
Hengtong Optic-Electric Co. Ltd., Class A     37,300       87,885  
Hengyi Petrochemical Co. Ltd., Class A     43,500       85,940  
Hesteel Co. Ltd., Class A     96,000       30,900  
Hithink RoyalFlush Information Network Co. Ltd., Class A     5,600       98,931  
HLA Corp. Ltd., Class A     22,200       21,628  
Hongfa Technology Co. Ltd., Class A     6,100       29,845  
Hua Hong Semiconductor Ltd.(a)(c)     58,000       126,225  
Huaan Securities Co. Ltd., Class A     28,400       31,284  
Huadian Power International Corp. Ltd., Class A     48,900       23,085  
Huadian Power International Corp. Ltd., Class H     244,000       73,578  
Huadong Medicine Co. Ltd., Class A     8,800       24,297  
Huaneng Power International Inc., Class A     95,500       64,211  
Huaneng Power International Inc., Class H     420,000       169,228  
Huatai Securities Co. Ltd., Class A     23,900       63,424  
Huatai Securities Co. Ltd., Class H(a)     216,000       375,288  
Huaxi Securities Co. Ltd., Class A     18,000       28,969  
Huaxia Bank Co. Ltd., Class A     81,400       80,932  
Huayu Automotive Systems Co. Ltd., Class A     19,100       76,917  
Huazhu Group Ltd., ADR     16,441       554,884  
Hubei Biocause Pharmaceutical Co. Ltd., Class A     41,000       34,958  
Hubei Energy Group Co. Ltd., Class A     93,100       48,879  
Hunan Valin Steel Co. Ltd., Class A(b)     38,700       21,979  
Hundsun Technologies Inc., Class A     6,600       90,821  
Hutchison China MediTech Ltd., ADR(b)(c)     8,419       196,331  
Iflytek Co. Ltd., Class A     12,300       67,903  
Industrial & Commercial Bank of China Ltd., Class A     320,700       243,156  
Industrial & Commercial Bank of China Ltd., Class H     7,945,000       5,433,925  
Industrial Bank Co. Ltd., Class A     116,600       288,406  
Industrial Securities Co. Ltd., Class A     60,600       59,905  
Inner Mongolia BaoTou Steel Union Co. Ltd., Class A     336,100       56,255  
Inner Mongolia Junzheng Energy & Chemical Industry Group Co. Ltd., Class A(b)     150,700       58,209  
Inner Mongolia Yili Industrial Group Co. Ltd., Class A     37,000       153,024  
Inner Mongolia Yitai Coal Co. Ltd., Class B     189,600       130,066  
Innovent Biologics Inc.(a)(b)     71,500       326,624  
iQIYI Inc., ADR(b)(c)     16,203       363,433  
JD.com Inc., ADR(b)     91,511       3,524,089  
Jiangsu Expressway Co. Ltd., Class H     190,000       219,670  
Jiangsu Hengli Hydraulic Co. Ltd., Class A     4,000       33,189  
Jiangsu Hengrui Medicine Co. Ltd., Class A     23,720       285,344  
Jiangsu Yanghe Brewery Joint-Stock Co. Ltd., Class A     7,203       100,345  
Jiangxi Copper Co. Ltd., Class A     12,600       24,677  
Security   Shares     Value  
             
China (continued)                
Jiangxi Copper Co. Ltd., Class H     169,000     $ 198,210  
Jinduicheng Molybdenum Co. Ltd., Class A     24,800       22,848  
Jinke Properties Group Co. Ltd., Class A     30,900       33,286  
Joincare Pharmaceutical Group Industry Co. Ltd., Class A     16,600       27,191  
Jointown Pharmaceutical Group Co. Ltd., Class A     12,900       29,915  
JOYY Inc.(b)     6,771       365,431  
Kaisa Group Holdings Ltd.     379,000       168,270  
Kingboard Holdings Ltd.     98,500       260,373  
Kingboard Laminates Holdings Ltd.     154,000       153,545  
Kingdee International Software Group Co. Ltd.(c)     308,000       394,038  
Kingsoft Corp. Ltd.(b)     108,000       349,234  
Kunlun Energy Co. Ltd.     412,000       287,600  
Kweichow Moutai Co. Ltd., Class A     8,218       1,242,658  
KWG Group Holdings Ltd.     166,000       243,258  
Lee & Man Paper Manufacturing Ltd.     180,000       140,433  
Legend Holdings Corp., Class H(a)     50,200       86,318  
Lenovo Group Ltd.     924,000       570,308  
Lens Technology Co. Ltd., Class A     26,800       74,647  
Lepu Medical Technology Beijing Co. Ltd., Class A     13,100       64,280  
Li Ning Co. Ltd.     251,500       661,583  
Liaoning Cheng Da Co. Ltd., Class A(b)     12,600       31,634  
Logan Property Holdings Co. Ltd.     194,000       331,090  
Longfor Group Holdings Ltd.(a)     218,500       1,010,763  
LONGi Green Energy Technology Co. Ltd., Class A     20,900       91,790  
Luxshare Precision Industry Co. Ltd., Class A     30,340       207,469  
Luye Pharma Group Ltd.(a)(c)     209,000       127,389  
Luzhou Laojiao Co. Ltd., Class A     7,700       82,395  
Maanshan Iron & Steel Co. Ltd., Class H     180,000       65,828  
Mango Excellent Media Co. Ltd., Class A(b)     7,100       44,762  
Meinian Onehealth Healthcare Holdings Co. Ltd., Class A     39,384       74,202  
Meituan Dianping, Class B(b)     125,400       1,591,426  
Metallurgical Corp. of China Ltd., Class A     150,000       58,367  
Metallurgical Corp. of China Ltd., Class H     316,000       61,229  
Momo Inc., ADR     18,034       507,116  
Muyuan Foodstuff Co. Ltd., Class A     8,000       133,330  
NARI Technology Co. Ltd., Class A     27,100       76,878  
NavInfo Co. Ltd., Class A     10,800       26,451  
NetEase Inc., ADR.     8,771       2,795,405  
New China Life Insurance Co. Ltd., Class A     12,300       77,739  
New China Life Insurance Co. Ltd., Class H     100,300       381,609  
New Hope Liuhe Co. Ltd., Class A     21,500       74,433  
New Oriental Education & Technology Group Inc., ADR(b)     17,893       2,288,336  
Nexteer Automotive Group Ltd.     98,000       72,182  
Nine Dragons Paper Holdings Ltd.     218,000       257,358  
Ninestar Corp., Class A     7,200       42,828  
NIO Inc., ADR(b)(c)     84,200       347,746  
Noah Holdings Ltd.(b)(c)     3,876       110,001  
OFILM Group Co. Ltd., Class A(b)     24,800       65,635  
Oppein Home Group Inc., Class A     2,000       31,518  
Orient Securities Co. Ltd., Class A     34,100       48,636  
Oriental Pearl Group Co. Ltd., Class A     57,300       83,283  
Pacific Securities Co. Ltd. (The), Class A(b)     51,900       26,655  
People's Insurance Co. Group of China Ltd. (The), Class H     1,029,000       364,432  
Perfect World Co. Ltd., Class A     6,264       45,747  
PetroChina Co. Ltd., Class A     53,500       38,804  
PetroChina Co. Ltd., Class H     2,612,000       1,012,215  
PICC Property & Casualty Co. Ltd., Class H.     862,740       893,400  
Pinduoduo Inc., ADR(b)     24,135       863,550  
Ping An Bank Co. Ltd., Class A     93,500       193,950  


 

 

C o n s o l i d a t e d   S c h e d u l e   o f   I n v e s t m e n t s 43

 

 

 

 

Consolidated Schedule of Investments (unaudited) (continued) iShares® MSCI Emerging Markets Asia ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
China (continued)                
Ping An Healthcare and Technology Co. Ltd.(a)(b)     29,700     $ 290,214  
Ping An Insurance Group Co. of China Ltd., Class A     66,400       738,263  
Ping An Insurance Group Co. of China Ltd., Class H     691,000       7,683,147  
Poly Developments and Holdings Group Co. Ltd., Class A     59,700       138,271  
Postal Savings Bank of China Co. Ltd., Class H(a)     1,012,000       638,908  
Power Construction Corp. of China Ltd., Class A     112,000       68,095  
RiseSun Real Estate Development Co. Ltd., Class A     30,200       36,982  
Rongsheng Petro Chemical Co. Ltd., Class A     20,000       29,613  
SAIC Motor Corp. Ltd., Class A     46,522       147,815  
Sanan Optoelectronics Co. Ltd., Class A     24,900       87,807  
Sansteel Minguang Co. Ltd. Fujian, Class A     21,100       23,635  
Sany Heavy Industry Co. Ltd., Class A     43,700       108,966  
SDIC Capital Co. Ltd., Class A     27,800       51,542  
SDIC Power Holdings Co. Ltd., Class A     26,000       28,119  
Seazen Group Ltd.     304,000       312,463  
Seazen Holdings Co. Ltd., Class A     11,300       51,891  
Semiconductor Manufacturing International Corp.(b)(c)     378,300       733,003  
SF Holding Co. Ltd., Class A     6,400       44,817  
Shaanxi Coal Industry Co. Ltd., Class A     70,900       80,128  
Shandong Buchang Pharmaceuticals Co. Ltd., Class A     18,700       56,981  
Shandong Gold Mining Co. Ltd., Class A     16,100       78,125  
Shandong Linglong Tyre Co. Ltd., Class A     19,000       61,837  
Shandong Weigao Group Medical Polymer Co. Ltd., Class H     264,000       340,118  
Shanghai Electric Group Co. Ltd., Class A     82,900       53,249  
Shanghai Electric Group Co. Ltd., Class H     300,000       84,691  
Shanghai Fosun Pharmaceutical Group Co. Ltd., Class A     17,300       66,525  
Shanghai Fosun Pharmaceutical Group Co. Ltd., Class H     65,000       183,080  
Shanghai Industrial Holdings Ltd.     63,000       111,238  
Shanghai International Airport Co. Ltd., Class A     8,800       82,723  
Shanghai International Port Group Co. Ltd., Class A     41,100       26,694  
Shanghai Jinjiang International Hotels Co. Ltd., Class A     7,456       30,164  
Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd., Class B     169,936       134,589  
Shanghai Pharmaceuticals Holding Co. Ltd., Class A     26,700       71,313  
Shanghai Pharmaceuticals Holding Co. Ltd., Class H     111,800       204,576  
Shanghai Pudong Development Bank Co. Ltd., Class A     158,400       245,864  
Shanghai Tunnel Engineering Co. Ltd., Class A     81,300       65,131  
Shanxi Lu'an Environmental Energy Development Co. Ltd., Class A     26,000       22,540  
Shanxi Securities Co. Ltd., Class A     50,600       56,896  
Shanxi Xinghuacun Fen Wine Factory Co. Ltd., Class A     5,500       67,863  
Shanxi Xishan Coal & Electricity Power Co. Ltd., Class A     30,600       22,150  
Shenergy Co. Ltd., Class A     30,700       23,145  
Shenwan Hongyuan Group Co. Ltd., Class A     133,100       89,112  
Shenzhen Energy Group Co. Ltd., Class A     77,600       60,280  
Shenzhen Goodix Technology Co. Ltd., Class A     2,100       93,088  
Shenzhen Hepalink Pharmaceutical Group Co. Ltd., Class A     10,156       37,020  
Shenzhen Inovance Technology Co. Ltd., Class A     9,300       37,665  
Shenzhen International Holdings Ltd.     133,500       255,589  
Shenzhen Investment Ltd.     360,000       121,031  
Shenzhen Kangtai Biological Products Co. Ltd., Class A     5,000       79,418  
Shenzhen Mindray Bio-Medical Electronics Co. Ltd., Class A     2,600       88,896  
Shenzhen Overseas Chinese Town Co. Ltd., Class A     38,900       36,339  
Shenzhou International Group Holdings Ltd.     94,100       1,156,168  
Shimao Property Holdings Ltd.     143,000       511,956  
Shui On Land Ltd.     646,000       128,486  
Sichuan Chuantou Energy Co. Ltd., Class A     22,800       29,845  
Security   Shares     Value  
             
China (continued)                
Sichuan Kelun Pharmaceutical Co. Ltd., Class A     7,600     $ 24,952  
SINA Corp.(b)(c)     8,558       280,275  
Sino Biopharmaceutical Ltd.(c)     867,500       1,255,657  
Sinolink Securities Co. Ltd., Class A     46,100       65,949  
Sino-Ocean Group Holding Ltd.     481,500       174,854  
Sinopec Engineering Group Co. Ltd., Class H     174,500       86,432  
Sinopec Shanghai Petrochemical Co. Ltd., Class H     251,000       64,094  
Sinopharm Group Co. Ltd., Class H     169,600       523,400  
Sinotrans Ltd., Class H.     342,000       96,548  
Sinotruk Hong Kong Ltd.     95,500       182,592  
SOHO China Ltd.     269,000       97,341  
Songcheng Performance Development Co. Ltd., Class A     18,500       72,992  
SooChow Securities Co. Ltd., Class A     19,400       25,727  
Spring Airlines Co. Ltd., Class A     9,000       45,836  
SSY Group Ltd.     212,000       177,640  
Sun Art Retail Group Ltd.     323,000       412,814  
Sunac China Holdings Ltd.     302,000       1,646,980  
Suning.com Co. Ltd., Class A     40,500       53,767  
Sunny Optical Technology Group Co. Ltd.     89,000       1,384,156  
Suzhou Dongshan Precision Manufacturing Co. Ltd., Class A     15,300       61,942  
Suzhou Gold Mantis Construction Decoration Co. Ltd., Class A     22,899       28,402  
TAL Education Group, ADR(b)     46,465       2,527,231  
Tasly Pharmaceutical Group Co. Ltd., Class A     13,400       29,291  
TBEA Co. Ltd., Class A     67,600       60,248  
TCL Technology Group Corp., Class A     137,900       115,998  
Tencent Holdings Ltd.     587,500       29,099,646  
Tencent Music Entertainment Group, ADR(b)(c)     2,196       26,637  
Tianma Microelectronics Co. Ltd., Class A     12,500       28,969  
Tianqi Lithium Corp., Class A     9,620       43,653  
Tingyi Cayman Islands Holding Corp     246,000       447,614  
Toly Bread Co. Ltd., Class A     3,800       23,908  
Tonghua Dongbao Pharmaceutical Co. Ltd., Class A     12,900       21,038  
Tongling Nonferrous Metals Group Co. Ltd., Class A     80,300       23,664  
Tongwei Co. Ltd., Class A     37,800       93,281  
Towngas China Co. Ltd.     131,000       75,981  
Transfar Zhilian Co. Ltd., Class A     33,599       29,897  
TravelSky Technology Ltd., Class H     111,000       217,070  
Trip.com Group Ltd., ADR(b)(c)     57,814       1,755,233  
Tsingtao Brewery Co. Ltd., Class A     3,300       20,158  
Tsingtao Brewery Co. Ltd., Class H     54,000       280,635  
Uni-President China Holdings Ltd.     193,000       199,116  
Unisplendour Corp. Ltd., Class A     6,700       43,534  
Vipshop Holdings Ltd., ADR(b)     53,989       692,679  
Visual China Group Co. Ltd., Class A     8,400       20,308  
Walvax Biotechnology Co. Ltd., Class A     21,000       85,920  
Wangsu Science & Technology Co. Ltd., Class A     19,400       27,170  
Wanhua Chemical Group Co. Ltd., Class A     16,500       111,035  
Want Want China Holdings Ltd.(c)     624,000       482,030  
Weibo Corp., ADR(b)     7,022       295,907  
Weichai Power Co. Ltd., Class A     43,100       88,356  
Weichai Power Co. Ltd., Class H     238,200       468,878  
Wens Foodstuffs Group Co. Ltd., Class A     32,300       150,313  
Western Securities Co. Ltd., Class A     43,000       58,254  
Wharf Holdings Ltd. (The)     91,000       191,971  
Wuhu Sanqi Interactive Entertainment Network Technology Group Co. Ltd., Class A     11,800       57,158  
Wuliangye Yibin Co. Ltd., Class A     24,500       422,692  
WuXi AppTec Co. Ltd., Class A     7,800       118,280  


 

 

44 2 0 2 0   i  S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

  

Consolidated Schedule of Investments (unaudited) (continued) iShares® MSCI Emerging Markets Asia ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
                 
China (continued)                
WuXi AppTec Co. Ltd., Class H(a)     20,200     $ 297,827  
Wuxi Biologics Cayman Inc.(a)(b)     71,000       1,038,618  
Wuxi Lead Intelligent Equipment Co. Ltd., Class A     5,200       41,770  
XCMG Construction Machinery Co. Ltd., Class A     75,200       56,694  
Xiamen C & D Inc., Class A     22,200       24,359  
Xiaomi Corp., Class B(a)(b)     933,600       1,504,676  
Xinhu Zhongbao Co. Ltd., Class A     45,100       20,323  
Xinjiang Goldwind Science & Technology Co. Ltd.,                
Class A     34,702       52,225  
Xinjiang Goldwind Science & Technology Co. Ltd.,                
Class H     98,962       98,288  
Xinyi Solar Holdings Ltd.     436,000       345,195  
Yango Group Co. Ltd., Class A     25,900       29,679  
Yantai Jereh Oilfield Services Group Co. Ltd., Class A     5,600       27,719  
Yanzhou Coal Mining Co. Ltd., Class A     18,600       23,602  
Yanzhou Coal Mining Co. Ltd., Class H     252,000       191,109  
Yifan Pharmaceutical Co. Ltd., Class A     12,600       34,536  
Yihai International Holding Ltd.     63,000       421,587  
Yonghui Superstores Co. Ltd., Class A     47,200       58,070  
Yonyou Network Technology Co. Ltd., Class A     13,800       90,931  
Youzu Interactive Co. Ltd., Class A(b)     11,500       44,436  
Yuexiu Property Co. Ltd.     932,000       190,154  
Yum China Holdings Inc.     45,047       1,972,608  
Yunda Holding Co. Ltd., Class A     5,600       23,697  
Yunnan Baiyao Group Co. Ltd., Class A     5,500       61,915  
Yuzhou Properties Co. Ltd.     227,000       111,271  
Zhangzhou Pientzehuang Pharmaceutical Co. Ltd.,                
Class A     5,800       99,651  
Zhaojin Mining Industry Co. Ltd., Class H     128,500       153,183  
Zhejiang Chint Electrics Co. Ltd., Class A     22,200       85,653  
Zhejiang Dahua Technology Co. Ltd., Class A     22,400       62,103  
Zhejiang Expressway Co. Ltd., Class H     198,000       149,649  
Zhejiang Huayou Cobalt Co. Ltd., Class A     7,100       38,384  
Zhejiang Longsheng Group Co. Ltd., Class A     39,400       72,823  
Zhejiang NHU Co. Ltd., Class A     7,800       26,892  
Zhejiang Semir Garment Co. Ltd., Class A     17,100       19,008  
Zhengzhou Yutong Bus Co. Ltd., Class A     11,900       25,672  
ZhongAn Online P&C Insurance Co. Ltd., Class H(a)(b)(c)     47,200       198,659  
Zhongjin Gold Corp. Ltd., Class A     22,200       25,756  
Zhongsheng Group Holdings Ltd.     73,500       279,643  
Zhuzhou CRRC Times Electric Co. Ltd., Class H     69,600       243,371  
Zijin Mining Group Co. Ltd., Class A     140,900       83,852  
Zijin Mining Group Co. Ltd., Class H     720,000       323,365  
ZTE Corp., Class A(b)     13,100       93,703  
ZTE Corp., Class H(b)     97,160       402,078  
ZTO Express Cayman Inc., ADR     40,740       955,760  
            229,095,969  
India — 12.4%                
Adani Ports & Special Economic Zone Ltd.     77,460       367,296  
Ambuja Cements Ltd.     81,003       230,154  
Ashok Leyland Ltd.     185,125       179,308  
Asian Paints Ltd.     36,502       909,395  
Aurobindo Pharma Ltd.     36,042       252,458  
Avenue Supermarts Ltd.(a)(b)     16,250       523,285  
Axis Bank Ltd.     259,127       2,503,748  
Bajaj Auto Ltd.     10,483       419,799  
Bajaj Finance Ltd.     21,836       1,351,250  
Bajaj Finserv Ltd.     4,798       601,732  
Bandhan Bank Ltd.(a)     45,339       240,933  
Bharat Forge Ltd.     35,894       216,555  
Security   Shares     Value  
                 
India (continued)                
Bharat Petroleum Corp. Ltd.     83,836     $ 495,285  
Bharti Airtel Ltd.(b)     300,829       2,182,201  
Bharti Infratel Ltd..     44,436       132,044  
Bosch Ltd..     1,061       178,311  
Britannia Industries Ltd     7,534       310,077  
Cipla Ltd.     43,991       245,107  
Coal India Ltd.     158,128       368,985  
Container Corp. of India Ltd.     29,127       205,696  
Dabur India Ltd.     65,601       450,960  
Divi's Laboratories Ltd..     10,447       305,003  
Dr. Reddy's Laboratories Ltd..     14,170       574,733  
Eicher Motors Ltd     1,872       430,659  
GAIL India Ltd     196,029       283,582  
Godrej Consumer Products Ltd     44,091       342,440  
Grasim Industries Ltd..     37,577       357,819  
Havells India Ltd     32,315       274,510  
HCL Technologies Ltd     136,538       1,010,969  
HDFC Life Insurance Co. Ltd.(a)     58,906       444,116  
Hero MotoCorp Ltd.     11,619       330,333  
Hindalco Industries Ltd     141,437       305,540  
Hindustan Petroleum Corp. Ltd     78,182       214,014  
Hindustan Unilever Ltd.     80,970       2,440,011  
Housing Development Finance Corp. Ltd     202,933       6,118,148  
ICICI Bank Ltd.     538,655       3,711,452  
ICICI Lombard General Insurance Co. Ltd.(a)     17,500       299,877  
ICICI Prudential Life Insurance Co. Ltd.(a)     27,190       177,606  
Indian Oil Corp. Ltd     229,071       335,667  
Info Edge India Ltd.     5,528       198,650  
Infosys Ltd.     433,901       4,399,284  
InterGlobe Aviation Ltd.(a)     12,455       224,369  
ITC Ltd     428,030       1,171,682  
JSW Steel Ltd.     108,255       353,562  
Larsen & Toubro Ltd..     59,235       974,740  
LIC Housing Finance Ltd.     39,967       177,357  
Lupin Ltd     28,618       253,792  
Mahindra & Mahindra Financial Services Ltd     40,913       194,594  
Mahindra & Mahindra Ltd.     92,296       584,528  
Marico Ltd.     58,257       241,165  
Maruti Suzuki India Ltd.     13,232       1,152,014  
Motherson Sumi Systems Ltd.     122,709       176,240  
Nestle India Ltd     2,985       652,647  
NTPC Ltd..     304,040       448,893  
Oil & Natural Gas Corp. Ltd.     321,839       410,061  
Page Industries Ltd     680       208,673  
Petronet LNG Ltd     78,927       268,604  
Pidilite Industries Ltd.     17,347       363,706  
Piramal Enterprises Ltd.     12,267       222,087  
Power Grid Corp. of India Ltd.     232,861       585,641  
REC Ltd.     90,227       147,279  
Reliance Industries Ltd.     353,664       6,511,181  
SBI Life Insurance Co. Ltd.(a).     36,482       450,114  
Shree Cement Ltd..     1,082       339,903  
Shriram Transport Finance Co. Ltd..     21,654       358,952  
State Bank of India(b)     224,535       942,725  
Sun Pharmaceutical Industries Ltd     103,829       536,500  
Tata Consultancy Services Ltd     111,957       3,102,931  
Tata Motors Ltd.(b)     212,532       379,755  
Tata Power Co. Ltd. (The)     152,885       98,933  
Tata Steel Ltd     46,319       245,017  
Tech Mahindra Ltd.     59,126       609,878  

 

C o n s o l i d a t e d   S c h e d u l e   o f   I n v e s t m e n t s 45

 

 

 

 

Consolidated Schedule of Investments (unaudited) (continued) iShares® MSCI Emerging Markets Asia ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
                 
India (continued)                
Titan Co. Ltd.     39,792     $ 691,711  
UltraTech Cement Ltd.     12,832       750,281  
United Spirits Ltd.(b)     38,943       370,368  
UPL Ltd.     74,057       533,307  
Vedanta Ltd.     231,095       365,051  
Wipro Ltd.     141,428       433,980  
Zee Entertainment Enterprises Ltd.     109,986       364,702  
              60,815,915  
Indonesia — 2.6%                
Adaro Energy Tbk PT     1,840,600       148,172  
Astra International Tbk PT     2,449,500       943,265  
Bank Central Asia Tbk PT     1,230,200       2,696,622  
Bank Mandiri Persero Tbk PT     2,322,200       1,177,488  
Bank Negara Indonesia Persero Tbk PT     965,600       472,789  
Bank Rakyat Indonesia Persero Tbk PT     6,900,400       2,015,172  
Bank Tabungan Negara Persero Tbk PT     665,700       78,877  
Barito Pacific Tbk PT(b)     3,469,800       238,212  
Bukit Asam Tbk PT     429,800       67,102  
Bumi Serpong Damai Tbk PT(b)     1,098,900       76,592  
Charoen Pokphand Indonesia Tbk PT     919,200       365,181  
Gudang Garam Tbk PT     64,200       228,207  
Hanjaya Mandala Sampoerna Tbk PT     1,177,600       139,531  
Indah Kiat Pulp & Paper Corp. Tbk PT     398,300       156,155  
Indocement Tunggal Prakarsa Tbk PT     233,400       242,795  
Indofood CBP Sukses Makmur Tbk PT     346,200       247,932  
Indofood Sukses Makmur Tbk PT     570,400       258,414  
Jasa Marga Persero Tbk PT     253,298       82,623  
Kalbe Farma Tbk PT     2,720,800       231,356  
Pabrik Kertas Tjiwi Kimia Tbk PT     200,200       83,722  
Pakuwon Jati Tbk PT     2,643,000       97,633  
Perusahaan Gas Negara Tbk PT     1,502,800       134,071  
Semen Indonesia Persero Tbk PT     376,100       274,588  
Telekomunikasi Indonesia Persero Tbk PT     6,119,500       1,488,556  
Unilever Indonesia Tbk PT     959,900       456,617  
United Tractors Tbk PT     212,900       246,324  
              12,647,996  
Malaysia — 2.6%                
AirAsia Group Bhd     297,000       70,463  
AMMB Holdings Bhd     237,400       208,394  
Axiata Group Bhd     340,000       337,177  
British American Tobacco Malaysia Bhd.     100       295  
CIMB Group Holdings Bhd     588,000       672,399  
Dialog Group Bhd     476,678       377,723  
DiGi.Com Bhd     399,100       393,892  
Fraser & Neave Holdings Bhd     20,900       152,324  
Gamuda Bhd     242,600       190,511  
Genting Bhd     255,200       299,701  
Genting Malaysia Bhd     371,800       254,923  
Genting Plantations Bhd     52,700       125,280  
HAP Seng Consolidated Bhd     96,400       204,921  
Hartalega Holdings Bhd     201,500       296,394  
Hong Leong Bank Bhd     81,700       296,562  
Hong Leong Financial Group Bhd     26,300       95,466  
IHH Healthcare Bhd     275,400       372,427  
IJM Corp. Bhd     424,600       195,427  
IOI Corp. Bhd     246,100       243,473  
Kuala Lumpur Kepong Bhd     52,300       270,992  
Malayan Banking Bhd     469,200       937,287  
Malaysia Airports Holdings Bhd     66,300       103,658  
Security   Shares     Value  
                 
Malaysia (continued)                
Maxis Bhd     305,300     $ 393,305  
MISC Bhd     173,400       312,243  
Nestle Malaysia Bhd     8,500       288,375  
Petronas Chemicals Group Bhd     304,000       389,466  
Petronas Dagangan Bhd     43,500       235,715  
Petronas Gas Bhd     98,300       387,603  
PPB Group Bhd     77,080       330,996  
Press Metal Aluminium Holdings Bhd(c)     206,200       227,970  
Public Bank Bhd     384,510       1,559,934  
QL Resources Bhd     90,300       174,816  
RHB Bank Bhd     203,862       268,430  
RHB Capital Bhd(b)(d)     28,800       0 (e)
Sime Darby Bhd     361,400       171,483  
Sime Darby Plantation Bhd     270,600       318,428  
Telekom Malaysia Bhd     155,000       136,062  
Tenaga Nasional Bhd     385,400       1,106,368  
Top Glove Corp. Bhd     202,500       270,961  
Westports Holdings Bhd.     105,600       86,184  
YTL Corp. Bhd.     412,708       82,737  
              12,840,765  
Pakistan — 0.1%                
Habib Bank Ltd.     51,700       52,448  
MCB Bank Ltd.     80,800       102,436  
Oil & Gas Development Co. Ltd.     89,500       68,111  
              222,995  
Philippines — 1.3%                
Aboitiz Equity Ventures Inc     274,930       230,030  
Aboitiz Power Corp..     175,400       94,625  
Altus San Nicolas Corp     5,021       512  
Ayala Corp..     34,330       446,172  
Ayala Land Inc     883,060       675,612  
Bank of the Philippine Islands     127,752       185,707  
BDO Unibank Inc     248,709       678,186  
Globe Telecom Inc     5,190       181,128  
GT Capital Holdings Inc     11,260       157,055  
International Container Terminal Services Inc.     127,940       266,045  
JG Summit Holdings Inc.     357,596       473,521  
Jollibee Foods Corp.     55,830       186,191  
Manila Electric Co..     24,330       128,774  
Megaworld Corp.     1,622,900       108,246  
Metro Pacific Investments Corp.     1,977,400       119,090  
Metropolitan Bank & Trust Co.     226,512       249,063  
PLDT Inc     11,770       228,588  
Robinsons Land Corp     290,990       121,591  
Security Bank Corp     28,200       85,416  
SM Investments Corp.     29,549       564,895  
SM Prime Holdings Inc     1,253,850       942,079  
Universal Robina Corp.     116,660       323,375  
              6,445,901  
South Korea — 14.4%                
Amorepacific Corp.(b)     4,125       546,830  
AMOREPACIFIC Group(b)     3,784       193,172  
BGF retail Co. Ltd     942       117,508  
BNK Financial Group Inc     39,750       201,941  
Celltrion Healthcare Co. Ltd.(b)     6,786       362,069  
Celltrion Inc.(b).     11,500       1,609,716  
Cheil Worldwide Inc     8,517       135,697  
CJ CheilJedang Corp..     1,092       219,389  
CJ Corp.     2,226       147,545  

 

46 2 0 2 0   i  S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

 

Consolidated Schedule of Investments (unaudited) (continued) iShares® MSCI Emerging Markets Asia ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
                 
South Korea (continued)                
CJ ENM Co. Ltd.     1,436     $ 148,743  
CJ Logistics Corp.(b)     1,121       123,222  
Coway Co. Ltd.     6,457       366,313  
Daelim Industrial Co. Ltd.(b)     3,658       218,366  
Daewoo Engineering & Construction Co. Ltd.(b)     34,245       114,197  
Daewoo Shipbuilding & Marine Engineering Co. Ltd.(b)     4,953       90,333  
DB Insurance Co. Ltd.     6,454       230,101  
Doosan Bobcat Inc.     6,977       163,151  
E-MART Inc.     2,691       232,651  
Fila Holdings Corp.     6,632       209,690  
GS Engineering & Construction Corp.     8,648       186,916  
GS Holdings Corp.     6,394       217,170  
GS Retail Co. Ltd.     3,321       96,663  
Hana Financial Group Inc     37,282       963,899  
Hankook Tire & Technology Co. Ltd.     9,912       208,115  
Hanmi Pharm Co. Ltd.(b)     880       189,115  
Hanon Systems     26,371       229,077  
Hanwha Corp.     4,771       78,764  
Hanwha Life Insurance Co. Ltd.     34,705       47,150  
Hanwha Solutions Corp.     14,397       211,599  
HDC Hyundai Development Co-Engineering &                
Construction, Class E     3,968       58,973  
Helixmith Co. Ltd.(b)     2,790       142,659  
HLB Inc.(b)     4,190       332,923  
Hotel Shilla Co. Ltd.     4,075       269,430  
Hyundai Department Store Co. Ltd.     2,338       136,488  
Hyundai Engineering & Construction Co. Ltd.     9,791       279,743  
Hyundai Glovis Co. Ltd.     2,439       247,013  
Hyundai Heavy Industries Holdings Co. Ltd.     1,234       274,843  
Hyundai Marine & Fire Insurance Co. Ltd.     8,257       153,650  
Hyundai Mobis Co. Ltd.     8,485       1,467,147  
Hyundai Motor Co.     18,705       1,771,161  
Hyundai Steel Co.     10,526       206,707  
Industrial Bank of Korea(b)     31,160       243,995  
Kakao Corp.     6,355       900,008  
Kangwon Land Inc.(b)     15,272       286,704  
KB Financial Group Inc.     49,412       1,582,649  
KCC Corp.     669       91,716  
Kia Motors Corp.     32,921       982,615  
Korea Aerospace Industries Ltd.(b)     9,723       205,348  
Korea Electric Power Corp.(b)     32,268       565,919  
Korea Gas Corp.     3,407       78,828  
Korea Investment Holdings Co. Ltd.(b)     5,496       284,190  
Korea Shipbuilding & Offshore Engineering Co. Ltd.(b)     4,869       416,942  
Korea Zinc Co. Ltd.(b)     1,062       362,453  
Korean Air Lines Co. Ltd.(b)     5,225       95,939  
KT&G Corp.     14,582       1,016,958  
Kumho Petrochemical Co. Ltd.     2,415       117,916  
LG Chem Ltd.     5,788       1,753,795  
LG Corp.     12,002       667,052  
LG Display Co. Ltd.(b)     29,501       330,353  
LG Electronics Inc.     13,418       667,309  
LG Household & Health Care Ltd.     1,177       1,183,299  
LG Innotek Co. Ltd.     2,041       218,468  
LG Uplus Corp.     13,918       151,270  
Lotte Chemical Corp.     2,131       328,993  
Lotte Corp.     3,097       74,078  
Lotte Shopping Co. Ltd.     1,293       101,353  
Medy-Tox Inc     620       149,831  
Meritz Securities Co. Ltd.     39,342       112,568  
Security   Shares     Value  
                 
South Korea (continued)                
Mirae Asset Daewoo Co. Ltd.(b)     45,445     $ 237,234  
NAVER Corp.     17,458       2,501,187  
NCSoft Corp     2,077       1,109,900  
Netmarble Corp.(a)(b)     3,318       242,054  
NH Investment & Securities Co. Ltd.(b)     15,550       127,780  
OCI Co. Ltd.(b)     2,481       100,609  
Orion Corp     3,047       236,585  
Ottogi Corp     213       87,164  
Pan Ocean Co. Ltd.(b)     37,519       115,384  
Pearl Abyss Corp.(b)     823       120,079  
POSCO     9,744       1,568,507  
POSCO Chemical Co. Ltd.     3,646       164,813  
Posco International Corp     7,040       86,660  
S-1 Corp..     2,359       159,662  
Samsung Biologics Co. Ltd.(a)(b)     2,060       786,175  
Samsung C&T Corp.     10,483       910,627  
Samsung Card Co. Ltd.     3,549       98,478  
Samsung Electro-Mechanics Co. Ltd.     7,175       744,380  
Samsung Electronics Co. Ltd.     474,115       21,158,529  
Samsung Engineering Co. Ltd.(b)     16,797       195,008  
Samsung Fire & Marine Insurance Co. Ltd.     3,860       629,296  
Samsung Heavy Industries Co. Ltd.(b)     56,674       272,054  
Samsung Life Insurance Co. Ltd.     8,468       407,886  
Samsung SDI Co. Ltd.     6,873       1,669,440  
Samsung SDS Co. Ltd     4,298       589,228  
Samsung Securities Co. Ltd.     8,494       231,496  
Shinhan Financial Group Co. Ltd..     58,154       1,546,623  
Shinsegae Inc.     982       190,821  
SK Holdings Co. Ltd.     4,416       698,124  
SK Hynix Inc.     67,744       4,903,003  
SK Innovation Co. Ltd.     6,886       640,690  
SK Telecom Co. Ltd     2,538       444,072  
S-Oil Corp.     5,557       304,731  
Woori Financial Group Inc     59,816       473,307  
Yuhan Corp..     1,277       225,013  
              70,146,987  
Taiwan — 16.1%                
Accton Technology Corp.     38,000       205,188  
Acer Inc.     420,062       226,821  
Advantech Co. Ltd.     43,282       420,963  
Airtac International Group     18,000       286,233  
ASE Technology Holding Co. Ltd.     437,484       1,030,156  
Asia Cement Corp.     276,229       404,589  
Asustek Computer Inc     86,000       585,082  
AU Optronics Corp.     1,094,000       343,236  
Catcher Technology Co. Ltd     80,000       626,166  
Cathay Financial Holding Co. Ltd.     952,624       1,260,014  
Chailease Holding Co. Ltd     148,428       563,722  
Chang Hwa Commercial Bank Ltd     716,356       548,868  
Cheng Shin Rubber Industry Co. Ltd     240,776       314,493  
Chicony Electronics Co. Ltd     88,518       244,101  
China Airlines Ltd     280,000       75,457  
China Development Financial Holding Corp.     1,625,200       491,647  
China Life Insurance Co. Ltd.(b)     348,040       277,586  
China Steel Corp.     1,449,867       1,101,304  
Chunghwa Telecom Co. Ltd     466,000       1,662,115  
Compal Electronics Inc.     503,000       306,490  
CTBC Financial Holding Co. Ltd     2,295,265       1,720,719  
Delta Electronics Inc.     243,000       1,123,532  
E.Sun Financial Holding Co. Ltd     1,321,769       1,268,099  

 

C o n s o l i d a t e d   S c h e d u l e   o f   I n v e s t m e n t s 47

 

 

 

 

Consolidated Schedule of Investments (unaudited) (continued) iShares® MSCI Emerging Markets Asia ETF
February 29, 2020 (Percentages shown are based on Net Assets)

  

Security   Shares     Value  
                 
Taiwan (continued)                
Eclat Textile Co. Ltd.     23,604     $ 280,633  
Eva Airways Corp.     278,610       110,875  
Evergreen Marine Corp. Taiwan Ltd.(b)     410,867       156,724  
Far Eastern New Century Corp.     387,460       361,490  
Far EasTone Telecommunications Co. Ltd.     192,000       419,135  
Feng TAY Enterprise Co. Ltd.     37,970       214,431  
First Financial Holding Co. Ltd.     1,255,762       982,895  
Formosa Chemicals & Fibre Corp.     436,950       1,186,192  
Formosa Petrochemical Corp.     149,000       423,683  
Formosa Plastics Corp.     552,400       1,660,146  
Formosa Taffeta Co. Ltd.     137,000       151,571  
Foxconn Technology Co. Ltd..     111,521       219,142  
Fubon Financial Holding Co. Ltd.     802,396       1,177,909  
Giant Manufacturing Co. Ltd.     39,000       211,876  
Globalwafers Co. Ltd.     29,000       392,196  
Highwealth Construction Corp     119,840       177,507  
Hiwin Technologies Corp.     31,116       309,829  
Hon Hai Precision Industry Co. Ltd.     1,542,651       4,091,048  
Hotai Motor Co. Ltd.     37,000       766,162  
Hua Nan Financial Holdings Co. Ltd.     1,050,081       747,345  
Innolux Corp.     1,064,620       277,762  
Inventec Corp.     352,980       267,537  
Largan Precision Co. Ltd.     13,000       1,901,947  
Lite-On Technology Corp.     270,032       391,053  
MediaTek Inc.     188,176       2,237,268  
Mega Financial Holding Co. Ltd.     1,358,542       1,451,439  
Micro-Star International Co. Ltd.     89,000       266,887  
Nan Ya Plastics Corp.     636,090       1,430,596  
Nanya Technology Corp.     164,000       418,673  
Nien Made Enterprise Co. Ltd.     23,000       185,340  
Novatek Microelectronics Corp.     73,000       471,325  
Pegatron Corp.     242,000       501,111  
Phison Electronics Corp.     22,000       242,309  
Pou Chen Corp.     262,000       295,058  
Powertech Technology Inc.     97,000       326,756  
President Chain Store Corp.     72,000       705,031  
Quanta Computer Inc.     328,000       671,610  
Realtek Semiconductor Corp.     61,140       454,317  
Ruentex Development Co. Ltd.     80,439       109,051  
Ruentex Industries Ltd.     62,113       138,669  
Shanghai Commercial & Savings Bank Ltd. (The)     426,980       709,295  
Shin Kong Financial Holding Co. Ltd.     1,330,407       404,665  
SinoPac Financial Holdings Co. Ltd.     1,390,699       597,074  
Standard Foods Corp.     75,987       170,396  
Synnex Technology International Corp.     200,050       248,415  
Taishin Financial Holding Co. Ltd.     1,159,631       543,825  
Taiwan Business Bank     748,641       296,692  
Taiwan Cement Corp.     622,069       867,994  
Taiwan Cooperative Financial Holding Co. Ltd.     1,144,224       791,674  
Taiwan High Speed Rail Corp.     250,000       284,846  
Taiwan Mobile Co. Ltd.     199,000       690,071  
Taiwan Semiconductor Manufacturing Co. Ltd.     2,457,000       25,641,507  
Tatung Co. Ltd.(b)     253,000       175,883  
Uni-President Enterprises Corp.     596,650       1,442,388  
United Microelectronics Corp.     1,494,000       754,907  
Vanguard International Semiconductor Corp.     120,000       294,060  
Walsin Technology Corp.     41,000       288,413  
Win Semiconductors Corp.     45,000       406,463  
Winbond Electronics Corp.     423,000       223,518  
Wistron Corp.     373,080       333,289  
Security   Shares     Value  
                 
Taiwan (continued)                
Wiwynn Corp.     6,000     $ 143,463  
WPG Holdings Ltd     207,320       265,659  
Yageo Corp     32,151       435,341  
Yuanta Financial Holding Co. Ltd     1,208,893       766,550  
Zhen Ding Technology Holding Ltd.     61,455       234,418  
              78,881,915  
Thailand — 3.2%                
Advanced Info Service PCL, NVDR.     149,400       946,918  
Airports of Thailand PCL, NVDR.     533,900       1,010,950  
Bangkok Bank PCL, Foreign     62,200       259,208  
Bangkok Dusit Medical Services PCL, NVDR     1,180,100       830,240  
Bangkok Expressway & Metro PCL, NVDR     967,100       283,495  
Banpu PCL, NVDR     597,700       134,485  
Berli Jucker PCL, NVDR     154,000       178,133  
BTS Group Holdings PCL, NVDR     892,900       308,433  
Bumrungrad Hospital PCL, NVDR     60,700       247,186  
Central Pattana PCL, NVDR     271,400       455,845  
Central Retail Corp. PCL, NVDR(b)     101,174       100,998  
Charoen Pokphand Foods PCL, NVDR     502,900       426,322  
CP ALL PCL, NVDR     722,300       1,505,030  
Electricity Generating PCL, NVDR     37,900       327,894  
Energy Absolute PCL, NVDR     213,400       263,749  
Gulf Energy Development PCL, NVDR     77,200       404,899  
Home Product Center PCL, NVDR.     732,849       297,274  
Indorama Ventures PCL, NVDR(c)     241,800       199,233  
Intouch Holdings PCL, NVDR     292,400       500,384  
IRPC PCL, NVDR     1,657,800       115,581  
Kasikornbank PCL     156,500       592,672  
Kasikornbank PCL, NVDR     75,500       284,725  
Krung Thai Bank PCL, NVDR     394,750       175,139  
Land & Houses PCL, NVDR.     1,100,100       292,849  
Minor International PCL, NVDR.     352,480       307,184  
Muangthai Capital PCL, NVDR     110,800       201,901  
PTT Exploration & Production PCL, NVDR     179,710       603,684  
PTT Global Chemical PCL, NVDR     283,000       369,949  
PTT PCL, NVDR.     1,411,500       1,744,525  
Ratch Group PCL, NVDR     100,700       188,284  
Siam Cement PCL (The), NVDR.     96,300       946,062  
Siam Commercial Bank PCL (The), NVDR     106,400       294,197  
Thai Oil PCL, NVDR     153,300       210,117  
Thai Union Group PCL, NVDR     469,600       227,694  
TMB Bank PCL, NVDR     3,401,222       117,488  
Total Access Communication PCL, NVDR.     111,000       128,395  
True Corp. PCL, NVDR(c)     1,473,705       155,053  
              15,636,175  
Total Common Stocks — 99.5%                
(Cost: $454,297,859)             486,734,618  
                 
Preferred Stocks                
South Korea — 0.2%                
Amorepacific Corp., Preference Shares, NVS     1,114       67,326  
Hyundai Motor Co.                
Preference Shares, NVS     2,717       148,322  
Series 2, Preference Shares, NVS     4,657       287,204  
LG Chem Ltd., Preference Shares, NVS     906       139,500  
LG Household & Health Care Ltd., Preference                
Shares, NVS     274       165,370  

 

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Consolidated Schedule of Investments (unaudited) (continued) iShares® MSCI Emerging Markets Asia ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
                 
South Korea (continued)                
Samsung Electronics Co. Ltd., Preference Shares, NVS     8,105     $ 303,979  
              1,111,701  
Total Preferred Stocks — 0.2%                
(Cost: $1,074,862)             1,111,701  
                 
Rights                
                 
China — 0.0%                
Legend Holdings Corp. Class H, (Expires 04/16/20)(b)     3,561       0 (e)
South Korea — 0.0%                
HDC Hyundai Development Co., (Expires 06/03/20)(b)     1,984       0 (e)
Total Rights — 0.0%                
(Cost: $0)             0 (e)
                 
Warrants                
                 
Thailand — 0.0%                
BTS Group Holdings PCL (Expires 02/16/21)(b)     80,220       2,186  
Total Warrants — 0.0%                
(Cost: $0)             2,186  
                 
Short-Term Investments                
                 
Money Market Funds — 1.6%                
BlackRock Cash Funds: Institutional, SL Agency Shares,                
1.74%(f)(g)(h)     7,330,613       7,335,745  
Security   Shares     Value  
                 
Money Market Funds (continued)                
BlackRock Cash Funds: Treasury, SL Agency Shares,                
1.52%(f)(g)     629,000     $ 629,000  
              7,964,745  
Total Short-Term Investments — 1.6%                
(Cost: $7,961,340)             7,964,745  
                 
Total Investments in Securities — 101.3%                
(Cost: $463,334,061)             495,813,250  
                 
Other Assets, Less Liabilities — (1.3)%             (6,379,780 )
                 
Net Assets — 100.0%           $ 489,433,470  

 

(a) Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.
(b) Non-income producing security.

(c) All or a portion of this security is on loan.

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

(e) Rounds to less than $1.
(f) Affiliate of the Fund.

(g) Annualized 7-day yield as of period-end.

(h) All or a portion of this security was purchased with cash collateral received from loaned securities.


 

Affiliates

 

Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

 

                                        Change in  
    Shares           Shares                       Unrealized  
    Held at           Held at     Value at           Net Realized     Appreciation  
Affiliated Issuer   08/31/19     Net Activity     02/29/20     02/29/20     Income     (Loss)(a)     (Depreciation)  
BlackRock Cash Funds: Institutional, SL Agency Shares     8,491,856       (1,161,243 )   7,330,613     $ 7,335,745     $ 92,336 (b)   $ 527     $ 1,624  
BlackRock Cash Funds: Treasury, SL Agency Shares     788,000       (159,000 )   629,000       629,000       6,270              
                          $ 7,964,745     $ 98,606     $ 527     $ 1,624  

 

(a) Includes realized capital gain distributions from an affiliated fund, if any.

(b) Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

 

Futures Contracts

 

                      Value/  
                Notional     Unrealized  
    Number of     Expiration     Amount     Appreciation  
Description     Contracts       Date       (000 )     (Depreciation)  
Long Contracts                                
Hang Seng China Enterprises Index     3       03/30/20     $ 199     $ (17,873 )
MSCI Emerging Markets E-Mini     17       03/20/20       858       (83,602 )
                            $ (101,475 )

 

C o n s o l i d a t e d   S c h e d u l e   o f   I n v e s t m e n t s 49

 

 

 

 

Consolidated Schedule of Investments (unaudited) (continued) iShares® MSCI Emerging Markets Asia ETF
February 29, 2020  

 

Derivative Financial Instruments Categorized by Risk Exposure

 

As of February 29, 2020, the fair values of derivative financial instruments located in the Consolidated Statements of Assets and Liabilities were as follows:

 

    Equity  
    Contracts  
Liabilities — Derivative Financial Instruments        
Futures contracts        
Unrealized depreciation on futures contracts(a)   $ 101,475  

 

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

 

For the six months ended February 29, 2020, the effect of derivative financial instruments in the Consolidated Statements of Operations was as follows:

 

    Equity  
    Contracts  
Net Realized Gain (Loss) from:        
Futures contracts   $ 97,744  
         
Net Change in Unrealized Appreciation (Depreciation) on:        
Futures contracts   $ (116,799 )

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:      
Average notional value of contracts — long   $ 673,960  

 

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

 

Fair Value Measurements

 

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

 

The following table summarizes the value of the Fund's investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund's investments into major categories is disclosed in the Consolidated Schedule of Investments above.

 

    Level 1     Level 2     Level 3     Total  
Investments                        
Assets                        
Common Stocks   $ 486,734,067     $ 512     $ 39     $ 486,734,618  
Preferred Stocks     1,111,701                   1,111,701  
Rights           0 (a)           0 (a)
Warrants     2,186                   2,186  
Money Market Funds     7,964,745                   7,964,745  
    $ 495,812,699     $ 512     $ 39     $ 495,813,250  
Derivative financial instruments(b)                                
Liabilities                                
Futures Contracts   $ (101,475 )   $     $     $ (101,475 )

 

(a) Rounds to less than $1.

(b) Shown at the unrealized appreciation (depreciation) on the contracts.

 

See notes to consolidated financial statements.

 

50 2 0 2 0   i  S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

 

 

Consolidated Schedule of Investments (unaudited) iShares® MSCI Emerging Markets Small-Cap ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
                 
Common Stocks                
                 
Argentina — 0.7%                
Adecoagro SA(a)(b)     34,301     $ 224,329  
Arcos Dorados Holdings Inc., Class A     36,907       237,681  
Banco BBVA Argentina SA, ADR(a)     21,781       87,778  
Central Puerto SA, ADR     30,855       99,970  
Cresud SACIF y A, ADR(a)     12,307       59,443  
Despegar.com Corp.(a)(b)     14,577       174,778  
Empresa Distribuidora y Comercializadora                
Norte SA, ADR(a)(b)     9,767       43,561  
Grupo Supervielle SA, ADR     21,024       56,344  
Loma Negra Cia Industrial Argentina SA, ADR(a)(b)     19,683       114,161  
Pampa Energia SA, ADR(a)(b)     16,363       193,902  
Transportadora de Gas del Sur SA, Class B     22,317       125,198  
              1,417,145  
Brazil — 8.0%                
AES Tiete Energia SA     43,941       148,137  
Aliansce Sonae Shopping Centers SA(a)     40,049       405,403  
Alupar Investimento SA     43,308       270,696  
Anima Holding SA     22,900       182,727  
Arezzo Industria e Comercio SA     14,500       193,155  
Banco Inter SA     21,300       219,060  
BK Brasil Operacao e Assessoria a Restaurantes SA     50,600       164,306  
BR Properties SA(a)     66,641       203,543  
Camil Alimentos SA     46,100       86,444  
Cia. de Locacao das Americas     99,700       467,601  
Cia. de Saneamento de Minas Gerais-COPASA     18,800       251,311  
Cia. de Saneamento do Parana     19,200       427,693  
Cia. Hering     41,500       207,332  
Construtora Tenda SA     21,800       169,456  
Cosan Logistica SA(a)     42,122       169,360  
CVC Brasil Operadora e Agencia de Viagens SA     38,700       220,707  
Cyrela Brazil Realty SA Empreendimentos                
e Participacoes     76,200       503,817  
Dommo Energia SA(a)     41,800       12,044  
Duratex SA     95,900       369,643  
EcoRodovias Infraestrutura e Logistica SA(a)     58,899       206,006  
EDP - Energias do Brasil SA     86,400       391,243  
Enauta Participacoes SA     25,900       76,294  
Eneva SA(a)     33,500       317,428  
Even Construtora e Incorporadora SA(a)     38,600       122,688  
Ez Tec Empreendimentos e Participacoes SA     27,477       283,196  
Fleury SA     62,800       414,245  
Grendene SA     89,100       191,564  
Grupo SBF SA(a)     20,500       198,064  
Guararapes Confeccoes SA     31,000       188,955  
Iguatemi Empresa de Shopping Centers SA     26,600       293,790  
Instituto Hermes Pardini SA     17,500       111,517  
Iochpe Maxion SA     32,805       141,352  
JHSF Participacoes SA     89,200       138,595  
JSL SA     21,200       130,255  
Light SA     67,600       324,991  
Linx SA     47,600       331,073  
LOG Commercial Properties e Participacoes SA     19,160       117,126  
M. Dias Branco SA     25,600       232,642  
Mahle-Metal Leve SA     12,200       72,876  
Marfrig Global Foods SA(a)     135,700       363,038  
Marisa Lojas SA(a)     40,700       123,769  
Minerva SA(a)     79,100       203,726  
Movida Participacoes SA     44,600       177,939  
Security   Shares     Value  
                 
Brazil (continued)                
MRV Engenharia e Participacoes SA     89,900     $ 388,361  
Odontoprev SA     78,500       286,916  
Omega Geracao SA(a)     16,900       145,152  
Petro Rio SA(a)     27,200       237,536  
Qualicorp Consultoria e Corretora de Seguros SA     68,100       516,978  
Santos Brasil Participacoes SA     84,100       110,539  
Sao Martinho SA     52,300       307,078  
Ser Educacional SA(c)     19,535       111,711  
SLC Agricola SA     29,600       132,331  
Smiles Fidelidade SA     19,100       138,774  
TOTVS SA     46,100       725,580  
Transmissora Alianca de Energia Eletrica SA     62,300       414,123  
Trisul SA     32,700       104,660  
Tupy SA     19,100       92,671  
Via Varejo SA(a)     289,600       886,455  
Wiz Solucoes e Corretagem de Seguros SA     25,300       79,069  
YDUQS Part     79,200       910,906  
              15,413,647  
Chile — 0.9%                
AES Gener SA     824,167       121,003  
Besalco SA     126,280       50,619  
CAP SA     20,748       117,103  
Cia. Sud Americana de Vapores SA(a)     3,267,206       95,547  
Engie Energia Chile SA     149,258       191,920  
Forus SA     32,587       39,124  
Grupo Security SA     356,168       70,080  
Inversiones Aguas Metropolitanas SA     120,610       104,403  
Inversiones La Construccion SA     10,561       78,814  
Parque Arauco SA     176,213       360,877  
Ripley Corp. SA     248,793       97,051  
Salfacorp SA     106,524       49,853  
SMU SA     727,461       108,446  
SONDA SA     153,140       108,064  
Vina Concha y Toro SA     113,588       187,553  
              1,780,457  
China — 11.4%                
21Vianet Group Inc., ADR(a)     17,775       266,269  
360 Finance Inc., ADR(a)(b)     13,423       112,216  
361 Degrees International Ltd.     298,000       53,535  
500.com Ltd., ADR(a)(b)     5,713       30,793  
AGTech Holdings Ltd.(a)(b)     1,256,000       43,516  
Ajisen China Holdings Ltd.     158,000       39,941  
AK Medical Holdings Ltd.(c)     92,000       190,303  
Anxin-China Holdings Ltd.(a)(d)     1,084,000       1  
Aoyuan Healthy Life Group Co. Ltd.     83,000       89,038  
Ascletis Pharma Inc.(a)(b)(c)     113,000       56,550  
Asia Cement China Holdings Corp.     147,500       194,571  
Atlas Crop.     26,710       283,126  
AVIC International Holdings Ltd., Class H(a)     78,000       83,274  
Beijing Capital Land Ltd., Class H     430,000       115,872  
Beijing Chunlizhengda Medical Instruments Co. Ltd.,                
Class H     10,200       102,287  
Beijing Gas Blue Sky Holdings Ltd.(a)(b)     2,888,000       70,411  
Beijing Tong Ren Tang Chinese Medicine Co. Ltd.(b)     84,000       141,203  
Bitauto Holdings Ltd., ADR(a)(b)     8,753       130,420  
Boshiwa International Holding Ltd.(a)(b)(d)     32,000       0 (e)
Camsing International Holding Ltd.(a)(b)(d)     164,000       20,750  
CanSino Biologics Inc., Class H(a)(c)     17,200       180,099  
Canvest Environmental Protection Group Co. Ltd.     297,000       143,297  

 

C o n s o l i d a t e d   S c h e d u l e   o f   I n v e s t m e n t s 51

 

 

 

 

Consolidated Schedule of Investments (unaudited) (continued) iShares® MSCI Emerging Markets Small-Cap ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
                 
China (continued)                
CAR Inc.(a)(b)     248,000     $ 155,616  
Central China Real Estate Ltd.     290,000       169,690  
CGN Meiya Power Holdings Co. Ltd.(a)(c)     434,000       66,272  
Changyou.com Ltd., ADR     6,186       66,561  
Chaowei Power Holdings Ltd.     200,000       63,133  
China Aircraft Leasing Group Holdings Ltd.     122,000       117,882  
China Animal Healthcare Ltd.(a)(b)(d)     126,000       647  
China BlueChemical Ltd., Class H     622,000       118,126  
China Datang Corp. Renewable Power Co. Ltd., Class H     870,000       70,332  
China Dongxiang Group Co. Ltd.     1,385,000       138,623  
China Everbright Greentech Ltd.(c)     153,000       74,016  
China Foods Ltd.     284,000       104,955  
China Grand Pharmaceutical and Healthcare Holdings                
Ltd., Class A     328,000       207,919  
China Harmony New Energy Auto Holding Ltd.     269,000       132,894  
China High Speed Transmission Equipment Group                
Co. Ltd.(b)     124,000       78,762  
China Huiyuan Juice Group Ltd.(a)(d)     379,000       52,524  
China Lilang Ltd.     141,000       91,370  
China LNG Group Ltd.(a)     794,000       39,735  
China Logistics Property Holdings Co. Ltd.(a)(b)(c)     316,000       121,647  
China Lumena New Materials Corp.(a)(b)(d)     5,249       0 (e)
China Maple Leaf Educational Systems Ltd.     476,000       166,138  
China Meidong Auto Holdings Ltd.     136,000       199,994  
China Merchants Land Ltd.     772,000       114,913  
China Metal Recycling Holdings Ltd.(a)(d)     12,000       0 (e)
China Metal Resources Utilization Ltd.(a)(b)(c)     312,000       119,306  
China Modern Dairy Holdings Ltd.(a)     771,000       92,998  
China New Higher Education Group Ltd.(c)     224,000       76,170  
China Oriental Group Co. Ltd.     376,000       128,340  
China Overseas Grand Oceans Group Ltd.     462,000       315,982  
China Overseas Property Holdings Ltd.(b)     385,000       311,239  
China Resources Medical Holdings Co. Ltd.     291,000       150,857  
China SCE Group Holdings Ltd.     570,000       310,854  
China Shineway Pharmaceutical Group Ltd.     101,000       88,130  
China South City Holdings Ltd.     1,782,000       196,652  
China Suntien Green Energy Corp. Ltd., Class H     491,000       119,709  
China Tian Lun Gas Holdings Ltd.     86,000       70,406  
China Travel International Investment Hong Kong Ltd.     762,000       120,269  
China Water Affairs Group Ltd.(b)     262,000       208,778  
China Youzan Ltd.(a)(b)     3,136,000       317,904  
China Yuhua Education Corp Ltd.(b)(c)     370,000       286,294  
China ZhengTong Auto Services Holdings Ltd.(b)     341,000       94,515  
Chinasoft International Ltd.(b)     622,000       381,514  
CIMC Enric Holdings Ltd.     192,000       99,535  
CITIC Resources Holdings Ltd.     818,000       44,610  
COFCO Meat Holdings Ltd.(a)     406,000       101,591  
Colour Life Services Group Co. Ltd.(b)     122,000       64,498  
Concord New Energy Group Ltd.     2,520,000       109,944  
Consun Pharmaceutical Group Ltd.     172,000       84,090  
COSCO SHIPPING International Hong Kong Co. Ltd.     238,000       70,242  
Cosmo Lady China Holdings Co. Ltd.(c)     232,000       30,068  
CPMC Holdings Ltd.     207,000       79,155  
Daqo New Energy Corp., ADR(a)     2,749       180,252  
Dawnrays Pharmaceutical Holdings Ltd.     395,000       66,906  
Digital China Holdings Ltd.     226,000       113,391  
Dongyue Group Ltd.     389,000       202,161  
Essex Bio-Technology Ltd.     130,000       91,748  
Ever Sunshine Lifestyle Services Group Ltd.     148,000       149,461  
Fanhua Inc., ADR     15,746       319,644  
Security   Shares     Value  
                 
China (continued)                
Fantasia Holdings Group Co. Ltd.     598,500     $ 114,431  
FinVolution Group     32,255       63,865  
Fu Shou Yuan International Group Ltd.     304,000       259,801  
Fufeng Group Ltd.     492,400       190,817  
GCL-Poly Energy Holdings Ltd.(a)     4,119,000       195,563  
Gemdale Properties & Investment Corp. Ltd.     1,394,000       246,851  
Genertec Universal Medical Group Co. Ltd.(b)(c)     322,500       224,296  
Glorious Property Holdings Ltd.(a)     69,000       1,461  
Glory Sun Financial Group Ltd.(b)     4,200,000       134,735  
Goodbaby International Holdings Ltd.(a)     318,000       54,271  
Grand Baoxin Auto Group Ltd.(a)     258,500       41,795  
Greenland Hong Kong Holdings Ltd.     295,000       114,698  
Guorui Properties Ltd.     362,000       64,103  
Haichang Ocean Park Holdings Ltd.(a)(c)     489,000       47,689  
Hangzhou Steam Turbine Co. Ltd., Class B     87,280       93,294  
Harbin Electric Co. Ltd., Class H(a)     210,000       56,589  
HC Group Inc.(a)(b)     191,000       51,714  
HengTen Networks Group Ltd.(a)(b)     7,716,000       98,021  
Hi Sun Technology China Ltd.(a)     933,000       130,497  
Honghua Group Ltd.(a)     855,000       45,531  
Hope Education Group Co. Ltd.(c)     528,000       116,535  
Hua Han Health Industry Holdings Ltd.(a)(d)     1,112,400       34,258  
Huabao International Holdings Ltd.     293,000       115,801  
Huami Corp., ADR(a)     8,907       126,479  
Huangshi Dongbei Electrical Appliance Co. Ltd., Class B     66,700       81,174  
Huifu Payment Ltd.(a)(b)(c)     229,600       86,619  
IGG Inc.(b)     310,000       225,547  
IMAX China Holding Inc.(c)     38,100       71,379  
Jianpu Technology Inc., ADR(a)(b)     17,270       17,270  
Jiayuan International Group Ltd.     354,000       139,909  
Jinchuan Group International Resources Co. Ltd.     870,000       85,961  
JinkoSolar Holding Co. Ltd., ADR(a)     9,615       219,607  
JNBY Design Ltd.     68,500       73,835  
Jumei International Holding Ltd., ADR(a)(b)     2,782       53,887  
Kasen International Holdings Ltd.(a)(b)     196,000       36,720  
Konka Group Co. Ltd., Class B     240,300       100,523  
Lifetech Scientific Corp.(a)     888,000       174,340  
Lonking Holdings Ltd.     606,000       168,743  
Luthai Textile Co. Ltd., Class B     58,900       54,947  
LVGEM China Real Estate Investment Co. Ltd.     382,000       114,212  
Meitu Inc.(a)(b)(c)     609,500       143,908  
MMG Ltd.(a)     680,000       138,739  
Nam Tai Property Inc.(a)     12,941       87,999  
National Agricultural Holdings Ltd.(a)(b)(d)     354,000       21,804  
NetDragon Websoft Holdings Ltd.(b)     63,500       175,188  
NOVA Group Holdings Ltd.(b)     480,000       93,006  
OneSmart International Education Group Ltd., ADR(a)(b)     26,611       144,764  
Panda Green Energy Group Ltd.(a)     1,476,000       41,289  
PAX Global Technology Ltd.     257,000       127,625  
Phoenix Media Investment Holdings Ltd.     754,000       46,441  
Poly Property Group Co. Ltd.     680,000       255,664  
Pou Sheng International Holdings Ltd.     646,000       164,960  
Q Technology Group Co. Ltd.(a)(b)     120,000       168,766  
Qudian Inc., ADR(a)     57,711       151,203  
Qutoutiao Inc., ADR(a)     19,396       101,053  
Realord Group Holdings Ltd.(a)     250,000       145,001  
Redco Properties Group Ltd.(c)     280,000       129,346  
Road King Infrastructure Ltd.     69,000       117,759  
Ronshine China Holdings Ltd.     181,500       200,993  
Sany Heavy Equipment International Holdings Co. Ltd.     311,000       185,569  

 

52 2 0 2 0  I  S h a r e s  S e m i  -  A n n u a l  R e p o r t  t o  S h a r e h o l d e r s

 

 

 

 

Consolidated Schedule of Investments (unaudited) (continued) iShares® MSCI Emerging Markets Small-Cap ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
                 
China (continued)                
Shandong Airlines Co. Ltd., Class B     50,400     $ 52,126  
Shanghai Fudan Microelectronics Group Co. Ltd.,                
Class H(a)(b)     92,000       70,360  
Shanghai Haixin Group Co., Class B     211,400       81,812  
Shanghai Haohai Biological Technology Co. Ltd.,                
Class H(a)(c)     13,000       66,309  
Shanghai Industrial Urban Development Group Ltd.     768,000       85,738  
Shanghai Jinjiang International Industrial Investment Co.                
Ltd., Class B     115,100       85,174  
Sheng Ye Capital Ltd.     124,000       111,063  
Shougang Concord International Enterprises Co. Ltd.     2,366,000       101,707  
Shougang Fushan Resources Group Ltd.     788,000       152,685  
Sihuan Pharmaceutical Holdings Group Ltd.     1,247,000       147,213  
Silver Grant International Holdings Group Ltd.(a)     584,000       84,681  
Sinopec Kantons Holdings Ltd.     284,000       114,795  
Skyfame Realty Holdings Ltd.     1,074,000       140,571  
Skyworth Group Ltd.(a)     574,000       143,628  
SMI Holdings Group Ltd.(a)(d)     468,800       91,437  
Sohu.com Ltd., ADR(a)(b)     10,376       98,883  
Superb Summit International Group Ltd.(a)(b)(d)     238,250       306  
TCL Electronics Holdings Ltd.     252,000       140,340  
Texhong Textile Group Ltd.     100,000       105,350  
Tian Ge Interactive Holdings Ltd.(a)(c)     233,000       52,322  
Tiangong International Co. Ltd.     316,000       112,726  
Tianjin Development Holdings Ltd.     392,000       98,087  
Tianjin Port Development Holdings Ltd.(b)     1,156,000       102,353  
Tianli Education International Holdings Ltd.     193,000       100,549  
Tianneng Power International Ltd.     226,000       167,331  
Tong Ren Tang Technologies Co. Ltd., Class H     179,000       165,378  
Tongda Group Holdings Ltd.     1,190,000       112,998  
Truly International Holdings Ltd.(a)     704,000       94,854  
Vinda International Holdings Ltd.     89,000       228,980  
Wasion Holdings Ltd.     170,000       68,715  
West China Cement Ltd.     836,000       135,167  
Wisdom Education International Holdings Co. Ltd.     236,000       89,942  
Wise Talent Information Technology Co. Ltd.(a)     41,800       102,984  
X Financial, ADR     27,449       45,291  
Xiamen International Port Co. Ltd., Class H     716,000       82,689  
Xingda International Holdings Ltd.     386,000       114,417  
Xtep International Holdings Ltd.     343,000       138,203  
Yadea Group Holdings Ltd.(c)     342,000       92,598  
YiChang HEC ChangJiang Pharmaceutical Co. Ltd.,                
Class H(c)     37,800       230,640  
Yixin Group Ltd.(a)(c)     600,000       129,346  
Yuexiu REIT     483,000       309,891  
Yuexiu Transport Infrastructure Ltd.     318,000       246,874  
Zhou Hei Ya International Holdings Co. Ltd.(b)(c)     191,500       101,487  
Zhuguang Holdings Group Co. Ltd.(a)     898,000       126,754  
              21,990,033  
Colombia — 0.3%                
Cementos Argos SA     128,924       192,638  
CEMEX Latam Holdings SA(a)     68,504       69,140  
Corp. Financiera Colombiana SA(a)     25,620       232,577  
              494,355  
Czech Republic — 0.1%                
Central European Media Enterprises Ltd., Class A(a)     38,165       164,521  
                 
Egypt — 0.5%                
Egyptian Financial Group-Hermes Holding Co.     182,859       169,729  
Ezz Steel Co. SAE(a)     62,196       31,749  
Security   Shares     Value  
                 
Egypt (continued)                
Heliopolis Housing     178,272     $ 63,520  
Juhayna Food Industries     183,976       94,033  
Medinet Nasr Housing(a)     284,527       77,536  
Oriental Weavers     115,698       77,120  
Palm Hills Developments SAE(a)     486,901       43,886  
Pioneers Holding For Financial Investments SAE(a)     184,547       53,950  
Six of October Development & Investment     76,514       60,007  
Talaat Moustafa Group     296,414       142,590  
Telecom Egypt Co.     99,508       78,104  
              892,224  
Greece — 0.7%                
Aegean Airlines SA     21,543       149,082  
GEK Terna Holding Real Estate Construction SA(a)     31,508       209,044  
Hellenic Exchanges-Athens Stock Exchange SA     45,969       181,781  
Mytilineos SA     38,506       288,042  
Piraeus Bank SA(a)(b)     86,413       188,322  
Public Power Corp. SA(a)(b)     34,109       110,677  
Terna Energy SA(a)     19,063       157,886  
              1,284,834  
Hungary — 0.1%                
Magyar Telekom Telecommunications PLC     145,255       188,076  
Opus Global Nyrt(a)     67,358       57,501  
              245,577  
India — 14.5%                
Aarti Industries Ltd.     14,100       190,699  
Aarti Surfactants Ltd.(a)     853       5,684  
Aavas Financiers Ltd.(a)     7,630       198,644  
Adani Enterprises Ltd.     41,990       127,220  
Adani Power Ltd.(a)     240,171       157,413  
Adani Transmission Ltd.(a)     83,629       291,906  
Aditya Birla Fashion and Retail Ltd.(a)     63,097       219,802  
Aegis Logistics Ltd.     29,705       91,913  
AIA Engineering Ltd.     12,952       321,011  
Ajanta Pharma Ltd.     7,891       151,456  
Alembic Pharmaceuticals Ltd.     16,919       147,686  
Amara Raja Batteries Ltd.     11,502       101,636  
Apollo Hospitals Enterprise Ltd.     25,557       614,707  
Apollo Tyres Ltd.     83,261       164,751  
Arvind Fashions Ltd.(a)     9,860       47,239  
Astral Poly Technik Ltd.     19,130       303,355  
Atul Ltd.     5,274       375,898  
AU Small Finance Bank Ltd.(c)     44,417       715,731  
Avanti Feeds Ltd.     12,512       80,220  
Bajaj Consumer Care Ltd.(a)     21,362       56,922  
Balkrishna Industries Ltd.     24,727       375,663  
Balrampur Chini Mills Ltd.     40,885       80,900  
BASF India Ltd.     5,039       71,698  
Bata India Ltd.     10,675       244,164  
Bayer CropScience Ltd./India     3,465       210,397  
Birla Corp. Ltd.     7,078       67,924  
Blue Dart Express Ltd.     1,975       75,218  
Can Fin Homes Ltd.     10,884       75,415  
Ceat Ltd.     6,939       98,190  
Century Textiles & Industries Ltd.     11,201       78,652  
CESC Ltd.     20,911       187,458  
Chalet Hotel Ltd.(a)     20,685       94,156  
Cholamandalam Financial Holdings Ltd.(a)     25,435       180,804  
City Union Bank Ltd.     93,115       277,729  
Coromandel International Ltd.     24,381       207,940  

 

C o n s o l i d a t e d   S c h e d u l e   o f   I n v e s t m e n t s 53

 

 

 

 

Consolidated Schedule of Investments (unaudited) (continued) iShares® MSCI Emerging Markets Small-Cap ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
                 
India (continued)                
CRISIL Ltd.     6,246     $ 131,476  
Crompton Greaves Consumer Electricals Ltd.     127,706       493,712  
Dalmia Bharat Ltd.(a)     14,745       159,796  
DCB Bank Ltd.     58,577       131,330  
Dilip Buildcon Ltd.(c)     10,078       41,782  
Dish TV India Ltd.(a)     192,556       22,013  
Dr Lal PathLabs Ltd.(c)     8,972       202,415  
eClerx Services Ltd.     6,166       46,364  
Edelweiss Financial Services Ltd.     134,878       163,253  
EIH Ltd.     60,161       109,914  
Endurance Technologies Ltd.(c)     10,512       142,966  
Engineers India Ltd.     69,034       66,961  
Equitas Holdings Ltd./India(a)     55,769       83,343  
Eris Lifesciences Ltd.(a)(c)     13,631       81,908  
Escorts Ltd.     17,769       192,075  
Exide Industries Ltd.     74,016       168,560  
Federal Bank Ltd.     455,732       542,452  
Finolex Cables Ltd.     26,729       120,298  
Fortis Healthcare Ltd.(a)     143,885       307,139  
Future Consumer Ltd.(a)     198,078       33,760  
Future Lifestyle Fashions Ltd.     18,119       87,497  
GE T&D India Ltd.     24,730       41,292  
Gillette India Ltd.     2,313       185,771  
Glenmark Pharmaceuticals Ltd.     43,900       168,836  
GMR Infrastructure Ltd.(a)     338,362       93,771  
Godrej Industries Ltd.     29,986       162,899  
Godrej Properties Ltd.(a)     18,818       261,550  
Graphite India Ltd.     19,487       60,229  
Great Eastern Shipping Co. Ltd. (The)     21,188       70,977  
Gujarat Fluorochemicals Ltd.(a)     11,581       80,879  
Gujarat Gas Ltd.     51,177       195,794  
Gujarat Pipavav Port Ltd.     87,626       86,998  
Gujarat State Petronet Ltd.     45,910       143,422  
HEG Ltd.     3,476       42,210  
Hemisphere Properties India Ltd.(a)     28,290       60,357  
Hexaware Technologies Ltd.     39,652       197,525  
ICICI Securities Ltd.(c)     19,344       127,642  
IDFC First Bank Ltd.(a)     611,716       311,929  
IDFC Ltd.     235,361       104,851  
IIFL Finance Ltd.     39,997       90,283  
IIFL Wealth Management Ltd.     8,273       167,822  
India Cements Ltd. (The)     71,536       95,507  
Indiabulls Housing Finance Ltd.     82,804       321,096  
Indiabulls Real Estate Ltd.(a)     69,331       72,244  
Indiabulls Ventures Ltd.     57,579       135,595  
Indian Hotels Co. Ltd. (The)     154,910       289,782  
Indraprastha Gas Ltd.     65,597       402,122  
Inox Leisure Ltd.     20,342       120,881  
Ipca Laboratories Ltd.     13,736       259,113  
IRB Infrastructure Developers Ltd.(a)     48,382       56,315  
Jindal Steel & Power Ltd.(a)     130,544       278,390  
JK Cement Ltd.     9,293       178,675  
JM Financial Ltd.     73,913       108,257  
JSW Energy Ltd.     113,064       89,771  
Jubilant Foodworks Ltd.     22,220       540,925  
Jubilant Life Sciences Ltd.     24,216       169,890  
Just Dial Ltd.(a)     12,359       79,822  
Kajaria Ceramics Ltd.     20,273       147,326  
Karur Vysya Bank Ltd. (The)     109,857       63,630  
Kaveri Seed Co. Ltd.     10,004       59,413  
Security   Shares     Value  
                 
India (continued)                
KEC International Ltd.     19,960   $ 85,767  
KEI Industries Ltd.     13,433       91,300  
KPIT Technologies Ltd.(a)     67,146       76,062  
KRBL Ltd.     18,207       63,034  
L&T Technology Services Ltd.(c)     6,761       151,849  
Lemon Tree Hotels Ltd.(a)(c)     185,404       132,564  
Mahanagar Gas Ltd.     12,256       170,727  
Mahindra CIE Automotive Ltd.(a)     38,351       70,519  
Manappuram Finance Ltd.     77,501       174,778  
Max Financial Services Ltd.(a)     45,963       367,679  
Minda Industries Ltd.     23,416       121,059  
Mindtree Ltd.     13,976       182,816  
Motilal Oswal Financial Services Ltd.     11,414       117,758  
Mphasis Ltd.     28,500       344,188  
Multi Commodity Exchange of India Ltd.     8,647       153,098  
Natco Pharma Ltd.     26,803       223,453  
National Aluminium Co. Ltd.     163,526       75,908  
NBCC India Ltd.     154,471       56,508  
NCC Ltd./India.     134,146       66,174  
NIIT Technologies Ltd.     7,046       164,977  
Oberoi Realty Ltd.     18,745       132,456  
Oil India Ltd.     68,069       101,867  
Persistent Systems Ltd.     12,563       121,230  
Pfizer Ltd.     3,515       204,278  
Phoenix Mills Ltd. (The)     18,225       216,286  
PI Industries Ltd.     18,321       388,735  
PNB Housing Finance Ltd.(c)     19,404       96,768  
Polycab India Ltd.(a)     10,451       153,896  
Power Finance Corp. Ltd.     203,713       308,953  
Prestige Estates Projects Ltd.     37,413       150,523  
Procter & Gamble Health Ltd.(a)     1,403       81,293  
PVR Ltd.     10,220       270,116  
Quess Corp. Ltd.(a)(c)     18,493       131,764  
Radico Khaitan Ltd.     17,679       100,536  
Rain Industries Ltd.     28,378       40,620  
Rajesh Exports Ltd.     24,189       220,615  
Ramco Cements Ltd. (The)     23,518       250,961  
Raymond Ltd.     9,453       66,142  
RBL Bank Ltd.(c)     106,615       429,754  
Redington India Ltd.     85,885       130,849  
Sadbhav Engineering Ltd.     29,833       29,144  
Sanofi India Ltd.     1,888       190,799  
Schaeffler India Ltd.     2,727       164,969  
Sobha Ltd.     14,901       61,324  
Spandana Sphoorty Financial Ltd.(a)     5,989       90,025  
SpiceJet Ltd.(a)     51,967       60,019  
SRF Ltd.     4,427       238,859  
Sterlite Technologies Ltd.     33,573       42,776  
Strides Pharma Science Ltd.     13,644       88,887  
Sundaram Finance Ltd.     9,982       218,382  
Sundram Fasteners Ltd.     21,033       121,023  
Sunteck Realty Ltd.     19,285       92,527  
Supreme Industries Ltd.     12,275       224,383  
Symphony Ltd.     6,864       120,840  
Syngene International Ltd.(c)     34,304       142,792  
Tata Chemicals Ltd.     23,422       231,729  
Tata Communications Ltd.     23,241       116,225  
Tata Consumer Products Ltd.     92,086       441,689  
Tata Elxsi Ltd.     5,804       70,994  
TeamLease Services Ltd.(a)     3,390       109,071  

 

54 2 0 2 0  I  S h a r e s  S e m i  -  A n n u a l  R e p o r t  t o  S h a r e h o l d e r s

 

 

 

 

Consolidated Schedule of Investments (unaudited) (continued) iShares® MSCI Emerging Markets Small-Cap ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
                 
India (continued)                
Thermax Ltd.     9,183     $ 117,416  
Timken India Ltd.     7,851       103,268  
Torrent Power Ltd.     39,082       164,061  
TTK Prestige Ltd.     1,476       116,510  
Tube Investments of India Ltd.     24,060       176,030  
Vakrangee Ltd.     155,581       85,155  
Varun Beverages Ltd.     23,807       268,230  
V-Guard Industries Ltd.     42,560       119,688  
Vinati Organics Ltd.     9,648       125,634  
VIP Industries Ltd.     13,017       73,926  
V-Mart Retail Ltd.     2,959       91,457  
Vodafone Idea Ltd.(a)     2,495,194       133,114  
Voltas Ltd.     31,428       295,587  
WABCO India Ltd.     2,036       191,033  
Welspun Corp. Ltd.     35,658       91,853  
Welspun India Ltd.     102,821       58,842  
Yes Bank Ltd.     577,443       276,849  
              27,975,976  
Indonesia — 1.8%                
AKR Corporindo Tbk PT     536,400       99,074  
Alam Sutera Realty Tbk PT(a)     4,811,000       50,969  
Aneka Tambang Tbk     2,591,000       103,839  
Bank Pembangunan Daerah Jawa Barat Dan Banten                
Tbk PT     750,700       46,567  
Bank Tabungan Pensiunan Nasional Syariah Tbk PT(a)     666,400       174,641  
Bumi Resources Tbk PT(a)     19,161,100       66,775  
Ciputra Development Tbk PT     3,068,763       202,124  
Global Mediacom Tbk PT(a)     2,536,500       54,805  
Hanson International Tbk PT(a)(d)     25,794,200       74,106  
Indika Energy Tbk PT     643,900       33,659  
Indo Tambangraya Megah Tbk PT     123,600       97,347  
Indosat Tbk PT(a)     414,400       58,921  
Inti Agri Resources Tbk PT(a)(d)     12,327,500       35,700  
Japfa Comfeed Indonesia Tbk PT     1,114,300       108,731  
Kresna Graha Investama Tbk PT(a)     3,646,600       119,965  
Link Net Tbk PT     418,400       101,775  
Lippo Karawaci Tbk PT(a)     9,105,400       144,696  
Matahari Department Store Tbk PT     726,300       158,953  
Medco Energi Internasional Tbk PT(a)     1,620,366       71,150  
Media Nusantara Citra Tbk PT     1,612,700       144,438  
Mitra Adiperkasa Tbk PT     2,640,100       147,209  
Panin Financial Tbk PT(a)     4,299,500       75,516  
Pelayaran Tamarin Samudra Tbk PT(a)     2,499,900       16,553  
Perusahaan Perkebunan London Sumatra Indonesia                
Tbk PT     974,800       65,904  
PP Persero Tbk PT     976,925       82,049  
PP Properti Tbk PT     7,401,569       26,310  
Ramayana Lestari Sentosa Tbk PT     952,100       68,683  
Sawit Sumbermas Sarana Tbk PT     1,444,000       81,522  
Sentul City Tbk PT(a)     7,030,000       24,499  
Sitara Propertindo Tbk PT(a)(d)     2,167,400       29,911  
Sri Rejeki Isman Tbk PT     4,680,000       65,238  
Sugih Energy Tbk PT(a)(d)     1,824,800       509  
Summarecon Agung Tbk PT     2,617,800       153,264  
Surya Citra Media Tbk PT     1,853,200       144,665  
Timah Tbk PT     1,045,796       41,912  
Tower Bersama Infrastructure Tbk PT     2,794,800       215,247  
Tunas Baru Lampung Tbk PT     1,054,600       45,205  
Waskita Beton Precast Tbk PT     3,746,800       48,573  
Waskita Karya Persero Tbk PT     1,536,200       104,394  
Security   Shares     Value  
                 
Indonesia (continued)                
Wijaya Karya Persero Tbk PT     1,004,348     $ 131,253  
              3,516,651  
Malaysia — 3.1%                
Aeon Co. M Bhd     243,000       79,559  
AEON Credit Service M Bhd(b)     36,200       118,520  
Alliance Bank Malaysia Bhd     275,700       151,095  
Berjaya Sports Toto Bhd     266,700       158,818  
Bermaz Auto Bhd     260,200       109,883  
Bumi Armada Bhd(a)     780,500       58,329  
Bursa Malaysia Bhd     169,150       221,119  
Cahya Mata Sarawak Bhd     171,000       77,488  
DRB-Hicom Bhd(b)     262,200       138,098  
Ekovest Bhd     443,800       67,386  
FGV Holdings Bhd(a)     500,500       135,367  
Frontken Corp. Bhd     225,000       121,174  
Globetronics Technology Bhd     195,066       96,260  
Hengyuan Refining Co. Bhd(a)     39,400       33,558  
Hibiscus Petroleum Bhd(a)     427,600       76,085  
IGB REIT     542,600       252,312  
Inari Amertron Bhd(b)     756,950       253,215  
Kossan Rubber Industries     176,600       201,110  
KPJ Healthcare Bhd     713,700       164,244  
Magnum Bhd     257,600       147,287  
Mah Sing Group Bhd     279,857       44,817  
Malaysia Building Society Bhd     478,700       87,449  
Malaysian Pacific Industries Bhd     29,500       76,427  
Malaysian Resources Corp. Bhd     610,900       82,613  
My EG Services Bhd(b)     581,400       154,488  
Padini Holdings Bhd(b)     110,800       79,387  
Pavilion REIT     201,300       85,965  
Pentamaster Corp. Bhd(a)     117,500       127,954  
Pos Malaysia Bhd(b)     147,700       39,947  
Sapura Energy Bhd     1,994,000       87,518  
Scientex Bhd(b)     90,000       192,171  
Serba Dinamik Holdings Bhd     427,620       223,194  
Sime Darby Property Bhd     737,000       135,510  
SKP Resources Bhd     253,400       79,958  
SP Setia Bhd Group     477,200       143,783  
Sunway Bhd     602,374       252,954  
Sunway Construction Group Bhd     190,020       84,303  
Sunway REIT     482,100       217,317  
Supermax Corp. Bhd     248,292       93,662  
Syarikat Takaful Malaysia Keluarga Bhd     73,800       82,992  
TIME dotCom Bhd     129,700       287,094  
UMW Holdings Bhd(b)     98,600       73,921  
Velesto Energy Bhd(a)     862,700       61,402  
ViTrox Corp. Bhd     60,500       120,569  
VS Industry Bhd(b)     450,425       136,784  
WCT Holdings Bhd(a)     248,315       38,293  
Yinson Holdings Bhd(b)     175,000       296,857  
              6,048,236  
Mexico — 2.8%                
Banco del Bajio SA(c)     213,900       331,712  
Bolsa Mexicana de Valores SAB de CV     131,600       276,409  
Concentradora Fibra Danhos SA de CV     83,000       115,424  
Concentradora Hipotecaria SAPI de CV(b)     143,400       133,212  
Consorcio ARA SAB de CV     342,100       61,693  
Controladora Vuela Cia. de Aviacion SAB de CV,                
Class A(a)     200,700       203,371  

 

C o n s o l i d a t e d   S c h e d u l e   o f   I n v e s t m e n t s 55

 

 

 

 

Consolidated Schedule of Investments (unaudited) (continued) iShares® MSCI Emerging Markets Small-Cap ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
                 
Mexico (continued)                
Corp Inmobiliaria Vesta SAB de CV     178,600     $ 281,751  
Credito Real SAB de CV SOFOM ER     79,100       83,869  
Genomma Lab Internacional SAB de CV, Class B(a)     209,100       210,404  
Gentera SAB de CV     324,000       309,164  
Grupo Aeromexico SAB de CV(a)     116,900       70,034  
Grupo Aeroportuario del Centro Norte SAB de CV     98,700       644,505  
Grupo Cementos de Chihuahua SAB de CV     52,300       258,851  
Grupo Comercial Chedraui SA de CV     103,000       131,790  
Grupo Herdez SAB de CV(b)     72,000       128,968  
Hoteles City Express SAB de CV(a)(b)     133,400       81,874  
La Comer SAB de CV(a)     153,900       181,448  
Macquarie Mexico Real Estate Management SA de CV(c)     237,600       313,495  
PLA Administradora Industrial S. de RL de CV(b)     240,500       360,085  
Prologis Property Mexico SA de CV     107,200       225,160  
Qualitas Controladora SAB de CV     54,000       229,868  
Regional SAB de CV     70,500       389,706  
Telesites SAB de CV(a)(b)     402,400       301,447  
Unifin Financiera SAB de CV(b)     38,300       60,478  
              5,384,718  
Pakistan — 0.6%                
Bank Alfalah Ltd.     207,850       63,194  
Engro Corp. Ltd./Pakistan     101,930       204,717  
Engro Fertilizers Ltd.     181,000       74,084  
Fauji Fertilizer Co. Ltd.     161,000       107,878  
Hub Power Co. Ltd. (The)(a)     240,904       140,797  
Indus Motor Co. Ltd.     4,180       26,640  
Lucky Cement Ltd.     45,350       143,510  
Millat Tractors Ltd.     9,518       40,877  
Nishat Mills Ltd.     57,164       37,759  
Pakistan Oilfields Ltd.     33,800       80,737  
Pakistan State Oil Co. Ltd.     60,008       64,013  
Searle Co. Ltd. (The)     31,847       36,052  
SUI Northern Gas Pipeline     62,700       26,909  
United Bank Ltd./Pakistan     143,800       154,476  
              1,201,643  
Philippines — 0.9%                
Alliance Global Group Inc.(a)     1,197,900       235,938  
Bloomberry Resorts Corp.     1,179,900       188,645  
Cebu Air Inc.     72,570       104,709  
Cosco Capital Inc.     885,500       108,397  
D&L Industries Inc.     881,800       124,896  
DoubleDragon Properties Corp.(a)     247,110       82,410  
Filinvest Land Inc.     3,347,000       80,761  
First Gen Corp.     375,000       134,919  
Manila Water Co. Inc.     372,800       86,006  
Megawide Construction Corp.     191,500       47,560  
Petron Corp.     1,017,200       67,048  
Pilipinas Shell Petroleum Corp.     126,700       64,748  
Semirara Mining & Power Corp.     297,600       113,260  
Vista Land & Lifescapes Inc.     1,126,100       138,733  
Wilcon Depot Inc.     502,300       178,355  
              1,756,385  
Poland — 1.0%                
Alior Bank SA(a)     27,142       144,566  
Asseco Poland SA     18,644       287,034  
Budimex SA     3,422       151,194  
Ciech SA(a)     8,253       73,263  
Enea SA(a)     66,706       94,746  
Energa SA(a)     60,540       107,792  
Security   Shares     Value  
                 
Poland (continued)                
Eurocash SA(b)     24,840   $ 114,161  
Famur SA.     84,530       55,529  
Grupa Azoty SA(a)     14,951       77,131  
Jastrzebska Spolka Weglowa SA     14,485       49,708  
KRUK SA     5,370       187,957  
PKP Cargo SA     10,693       34,281  
PLAY Communications SA(c)     33,386       258,945  
Tauron Polska Energia SA(a)(b)     330,981       92,343  
Warsaw Stock Exchange     8,913       85,904  
              1,814,554  
Qatar — 1.0%                
Doha Bank QPSC     448,280       283,745  
Gulf International Services QSC(a)     281,755       99,163  
Gulf Warehousing Co.     113,770       143,093  
Medicare Group     48,436       87,191  
Qatar Aluminum Manufacturing Co.     795,380       133,023  
Qatar Gas Transport Co. Ltd.     731,180       436,877  
Qatar National Cement Co. QSC     61,050       69,373  
Qatar Navigation QSC     173,437       265,457  
United Development Co. QSC     528,751       174,409  
Vodafone Qatar QSC     576,205       162,393  
              1,854,724  
Russia — 1.1%                
Aeroflot PJSC     150,706       208,432  
Credit Bank of Moscow PJSC     3,102,400       260,842  
Detsky Mir PJSC(c)     135,500       225,430  
LSR Group PJSC, GDR(f)     74,691       170,669  
M.Video PJSC     21,850       157,404  
Mechel PJSC, ADR(a)     33,104       77,463  
Mosenergo PJSC     3,124,000       108,062  
Rostelecom PJSC(a)     247,190       318,846  
Safmar Financial Investment     21,600       163,671  
Sistema PJSFC, GDR(f)     51,300       232,799  
TMK PJSC, GDR(f)     33,268       99,305  
Unipro PJSC     3,530,000       156,959  
              2,179,882  
Saudi Arabia — 2.7%                
Abdullah Al Othaim Markets Co.     13,952       307,565  
Al Hammadi Co. for Development and Investment(a)     21,096       134,061  
Al Rajhi Co for Cooperative Insurance(a)     5,483       91,055  
Aldrees Petroleum and Transport Services Co.     8,988       143,511  
Arabian Cement Co./Saudi Arabia     14,974       134,513  
Arriyadh Development Co.     31,082       135,381  
City Cement Co.     33,099       150,342  
Dallah Healthcare Co.     9,170       125,395  
Eastern Province Cement Co.     14,125       130,651  
Fawaz Abdulaziz Al Hokair & Co.(a)     22,451       169,063  
Herfy Food Services Co.     6,890       86,687  
Leejam Sports Co. JSC     8,481       167,970  
Maharah Human Resources Co.     4,677       96,869  
Mobile Telecommunications Co.(a)     76,154       205,432  
Mouwasat Medical Services Co.     15,551       360,224  
National Agriculture Development Co. (The)(a)     14,771       101,584  
National Gas & Industrialization Co.     19,330       160,761  
National Medical Care Co.     6,365       80,421  
Qassim Cement Co. (The)     14,274       258,732  
Saudi Chemical Co. Holding(a)     16,376       99,002  
Saudi Pharmaceutical Industries & Medical                
Appliances Corp.     20,879       155,834  

 

56 2 0 2 0  I  S h a r e s  S e m i  -  A n n u a l  R e p o r t  t o  S h a r e h o l d e r s

 

 

 

 

Consolidated Schedule of Investments (unaudited) (continued) iShares® MSCI Emerging Markets Small-Cap ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
                 
Saudi Arabia (continued)                
Saudi Public Transport Co.(a)     21,831     $ 99,044  
Saudi Real Estate Co.(a)     25,556       96,052  
Saudi Research & Marketing Group(a)     11,476       213,215  
Saudia Dairy & Foodstuff Co.     5,563       204,933  
Seera Group Holding     50,963       268,977  
Southern Province Cement Co.     19,678       313,149  
United Electronics Co.     8,504       177,946  
United International Transportation Co.     10,611       98,289  
Yamama Cement Co.(a)     33,740       215,130  
Yanbu Cement Co.     25,291       248,764  
              5,230,552  
South Africa — 4.1%                
Adcock Ingram Holdings Ltd.     17,114       43,657  
Advtech Ltd.     172,933       101,793  
AECI Ltd.     34,781       230,399  
African Rainbow Minerals Ltd.     31,624       274,377  
Alexander Forbes Group Holdings Ltd.     289,752       86,383  
Astral Foods Ltd.     11,687       139,443  
Attacq Ltd.     187,060       109,990  
AVI Ltd.     91,894       426,422  
Barloworld Ltd.     60,708       312,773  
Brait SE(a)(b)     268,376       110,889  
Cashbuild Ltd.     6,562       67,574  
City Lodge Hotels Ltd.(b)     12,332       38,333  
Coronation Fund Managers Ltd.     63,030       157,580  
Curro Holdings Ltd.     48,042       34,845  
DataTec Ltd.     64,237       124,950  
Dis-Chem Pharmacies Ltd.(c)     108,110       148,577  
Emira Property Fund Ltd.     156,409       117,022  
Equites Property Fund Ltd.     118,766       130,381  
Famous Brands Ltd.(b)     24,448       83,299  
Grindrod Ltd.     153,359       41,431  
Harmony Gold Mining Co. Ltd.(a)     147,768       521,788  
Hosken Consolidated Investments Ltd.     16,218       75,031  
Hudaco Industries Ltd.     11,211       68,143  
Hyprop Investments Ltd.(b)     68,697       194,892  
Imperial Logistics Ltd.     47,264       136,641  
Investec Property Fund Ltd.     101,705       74,607  
JSE Ltd.     26,969       171,433  
KAP Industrial Holdings Ltd.     839,964       155,910  
Massmart Holdings Ltd.(b)     31,014       88,223  
Motus Holdings Ltd.     49,308       228,807  
Murray & Roberts Holdings Ltd.     44,682       26,074  
Nampak Ltd.(a)     212,895       44,659  
Netcare Ltd.     354,334       412,186  
Oceana Group Ltd.     25,588       88,972  
Omnia Holdings Ltd.(a)     49,836       79,229  
Pioneer Foods Group Ltd.     36,373       251,951  
PPC Ltd.(a)     504,222       47,437  
Resilient REIT Ltd.     84,115       307,501  
Reunert Ltd.     50,938       179,513  
Royal Bafokeng Platinum Ltd.(a)     36,599       116,301  
SA Corporate Real Estate Ltd.     631,085       83,441  
Sappi Ltd.(a)     164,595       305,303  
Steinhoff International Holdings NV(a)(b)     1,149,983       97,955  
Stor-Age Property REIT Ltd.     80,718       66,190  
Sun International Ltd./South Africa(a)     41,776       83,650  
Super Group Ltd./South Africa(a)     115,776       156,831  
Tongaat Hulett Ltd.(a)     45,086       9,286  
Transaction Capital Ltd.     115,617       135,376  
Security   Shares     Value  
                 
South Africa (continued)                
Truworths International Ltd.     122,623     $ 350,218  
Tsogo Sun Gaming Ltd.     151,243       88,161  
Tsogo Sun Hotels Ltd.(a)     170,377       32,599  
Vukile Property Fund Ltd.     235,347       219,317  
Wilson Bayly Holmes-Ovcon Ltd.     15,984       100,365  
Zeder Investments Ltd.     317,829       85,662  
              7,863,770  
South Korea — 14.6%                
ABLBio Inc.(a)     7,893       112,757  
Advanced Process Systems Corp.(a)     4,027       88,531  
Aekyung Industrial Co. Ltd.     2,203       47,162  
AfreecaTV Co. Ltd.     2,671       119,860  
Ahnlab Inc.(b)     2,314       102,125  
AK Holdings Inc.     1,824       36,120  
Alteogen Inc.(a)(b)     2,756       196,290  
Amicogen Inc.(a)     5,126       92,222  
Ananti Inc.(a)     9,502       53,593  
Anterogen Co. Ltd.(a)     1,805       48,153  
Asiana Airlines Inc.(a)     36,018       120,554  
BGF Co. Ltd.     14,994       55,741  
BH Co. Ltd.(a)(b)     7,167       104,746  
Binex Co. Ltd.(a)     10,927       63,070  
Binggrae Co. Ltd.(a)     2,486       109,920  
Boryung Pharmaceutical Co. Ltd.     7,287       71,400  
Bukwang Pharmaceutical Co. Ltd.     13,987       144,534  
Cafe24 Corp.(a)     2,097       59,051  
Caregen Co. Ltd.(a)(d)     2,119       103,547  
Celltrion Pharm Inc.(a)     5,215       171,329  
Chabiotech Co. Ltd.(a)     13,033       133,066  
Chong Kun Dang Pharmaceutical Corp.(a)     2,492       177,282  
CJ CGV Co. Ltd.(a)     4,272       83,013  
CMG Pharmaceutical Co. Ltd.(a)     34,203       100,680  
Com2uSCorp.     3,144       252,659  
Cosmax Inc.     2,213       136,843  
CrystalGenomics Inc.(a)     12,889       115,147  
Cuckoo Homesys Co. Ltd.(a)     2,432       75,894  
Dae Hwa Pharmaceutical Co. Ltd.(b)     6,175       49,929  
Daea TI Co. Ltd.(b)     19,901       66,036  
Daeduck Electronics Co.(b)     17,629       136,010  
Daesang Corp.(a)     6,979       112,629  
Daewoong Co. Ltd.     8,384       70,068  
Daewoong Pharmaceutical Co. Ltd.     1,492       128,991  
Daishin Securities Co. Ltd.(a)     12,343       95,532  
Daou Technology Inc.     9,083       119,661  
DB HiTek Co. Ltd.     11,323       221,892  
Dentium Co. Ltd.(a)     2,534       87,422  
DGB Financial Group Inc.     48,546       224,243  
DIO Corp.(a)     3,675       100,310  
Dong-A Socio Holdings Co. Ltd.     1,344       94,727  
Dong-A ST Co. Ltd.     1,855       136,089  
Dongjin Semichem Co. Ltd.(a)     10,535       127,947  
DongKook Pharmaceutical Co. Ltd.     1,635       112,545  
Dongkuk Steel Mill Co. Ltd.(a)     20,972       80,814  
Dongsuh Cos. Inc.     10,523       135,599  
Dongsung Pharmaceutical Co. Ltd.(a)     6,216       62,186  
Dongwon F&B Co. Ltd.     355       61,529  
Dongwon Industries Co. Ltd.     570       91,988  
Doosan Heavy Industries & Construction Co. Ltd.(a)     37,408       154,314  
Doosan Infracore Co. Ltd.(a)     45,485       157,297  
DoubleUGames Co. Ltd.     2,967       100,407  

 

C o n s o l i d a t e d   S c h e d u l e   o f   I n v e s t m e n t s 57

 

 

 

 

Consolidated Schedule of Investments (unaudited) (continued) iShares® MSCI Emerging Markets Small-Cap ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
                 
South Korea (continued)                
Douzone Bizon Co. Ltd.(b)     5,957     $ 421,821  
Duk San Neolux Co. Ltd.(a)     4,390       119,464  
Easy Bio Inc.(a)(b)     15,519       56,863  
Ecopro BM Co. Ltd.     2,365       158,316  
Ecopro Co. Ltd.     6,367       119,267  
Enzychem Lifesciences Corp.(a)     2,228       104,567  
Eo Technics Co Ltd.(a)     2,756       200,601  
Eugene Corp.     19,249       60,069  
Eutilex Co. Ltd.(a)     1,090       44,874  
F&F Co. Ltd.     1,889       147,138  
Feelux Co. Ltd.(a)(b)     17,996       77,644  
Foosung Co. Ltd.     16,880       99,515  
GemVax & Kael Co. Ltd.(a)     10,151       229,850  
Genexine Co. Ltd.(a)     4,286       210,330  
Grand Korea Leisure Co. Ltd.     9,921       137,236  
Green Cross Cell Corp.     1,918       54,168  
Green Cross Corp./South Korea     1,868       174,572  
Green Cross Holdings Corp.     7,273       105,098  
Green Cross LabCell Corp.     2,366       55,911  
GS Home Shopping Inc.     1,155       117,925  
G-treeBNT Co. Ltd.(a)(b)     6,704       129,719  
Halla Holdings Corp.     2,774       80,742  
Hana Tour Service Inc.     3,398       118,349  
Hanall Biopharma Co. Ltd.(a)     8,692       167,828  
Handsome Co. Ltd.     4,657       93,945  
Hanil Cement Co. Ltd./New     772       46,148  
Hanjin Kal Corp.(a)(b)     10,533       582,806  
Hanjin Transportation Co. Ltd.(a)     2,482       63,148  
Hankook Technology Group Co. Ltd.     9,770       98,545  
Hansae Co. Ltd.     6,557       73,425  
Hansol Chemical Co. Ltd.     2,984       228,008  
Hanssem Co. Ltd.     3,332       175,585  
Hanwha Aerospace Co. Ltd.(a)     11,195       253,489  
Hanwha General Insurance Co. Ltd.(a)     21,200       38,490  
Hanwha Investment & Securities Co. Ltd.(a)     47,690       68,914  
Harim Holdings Co. Ltd.     13,726       79,791  
HDC Holdings Co. Ltd.     12,169       91,280  
Hite Jinro Co. Ltd.(a)(b)     10,053       220,181  
HLB Life Science Co. Ltd.(a)     11,748       216,194  
HS Industries Co. Ltd.(a)     17,038       152,914  
Huchems Fine Chemical Corp.     6,582       99,719  
Hugel Inc.(a)     997       307,761  
Huons Co. Ltd.     2,112       76,429  
Huons Global Co. Ltd.     2,618       60,573  
Hwaseung Enterprise Co. Ltd.(a)     6,562       81,046  
Hyosung Advanced Materials Corp.(a)     918       62,283  
Hyosung Chemical Corp.     724       61,998  
Hyosung Corp.     2,816       160,682  
Hyosung Heavy Industries Corp.(a)     2,046       33,272  
Hyosung TNC Co. Ltd.     862       104,689  
Hyundai Bioscience Co. Ltd.(a)     10,592       95,062  
Hyundai Construction Equipment Co. Ltd.(a)(b)     3,992       67,382  
Hyundai Electric & Energy System Co. Ltd.(a)     5,936       42,180  
Hyundai Elevator Co. Ltd.(a)     4,951       219,320  
Hyundai Greenfood Co. Ltd.     15,770       112,318  
Hyundai Home Shopping Network Corp.     1,942       118,647  
Hyundai Livart Furniture Co. Ltd.     5,635       43,196  
Hyundai Merchant Marine Co. Ltd.(a)     85,100       228,078  
Hyundai Mipo Dockyard Co. Ltd.     7,074       211,142  
Hyundai Rotem Co. Ltd.(a)     14,167       153,976  
Security   Shares     Value  
                 
South Korea (continued)                
Hyundai Wia Corp.     5,074     $ 160,638  
Iljin Materials Co. Ltd.(a)     6,923       264,208  
Ilyang Pharmaceutical Co. Ltd.     5,318       90,202  
InBody Co. Ltd.(a)     4,860       77,832  
Innocean Worldwide Inc.     2,729       152,123  
Innox Advanced Materials Co. Ltd.(a)     2,322       79,822  
Inscobee Inc.(a)(b)     27,913       63,548  
iNtRON Biotechnology Inc.(a)     9,219       81,980  
IS Dongseo Co. Ltd.     5,530       122,029  
JB Financial Group Co. Ltd.     41,248       170,154  
Jeil Pharmaceutical Co. Ltd.     2,003       45,849  
Jejuair Co. Ltd.(a)     2,661       44,040  
Jin Air Co. Ltd.(a)     4,543       45,449  
JW Pharmaceutical Corp.     4,902       98,080  
JYP Entertainment Corp.     8,142       141,789  
KEPCO Engineering & Construction Co. Inc.(a)     4,581       68,083  
KEPCO Plant Service & Engineering Co. Ltd.(a)     6,651       182,088  
Kginicis Co. Ltd.     7,510       123,054  
KIWOOM Securities Co. Ltd.(a)     3,597       195,769  
Koh Young Technology Inc.(a)     3,348       262,988  
Kolmar Korea Co. Ltd.(a)     4,400       148,357  
Kolmar Korea Holdings Co. Ltd.(a)     4,076       72,995  
Kolon Corp.     2,692       31,364  
Kolon Industries Inc.     5,775       159,056  
Komipharm International Co. Ltd.(a)(b)     12,013       196,343  
Korea Electric Terminal Co. Ltd.     1,754       46,576  
Korea Line Corp.(a)     4,370       60,809  
Korea Petrochemical Ind. Co Ltd.     1,111       78,305  
Korea REIT Co. Ltd.     68,642       108,516  
Korean Reinsurance Co.     29,156       195,654  
KT Skylife Co. Ltd.     10,470       63,449  
Kuk-Il Paper Manufacturing Co. Ltd.(a)(b)     26,760       108,737  
Kumho Tire Co. Inc.(a)     35,152       106,078  
Kyung Dong Navien Co. Ltd.     2,188       66,838  
L&F Co. Ltd.(b)     4,472       79,903  
LEENO Industrial Inc.     3,220       214,225  
LegoChem Biosciences Inc.(a)     2,703       99,930  
LF Corp.     7,129       73,667  
LG Hausys Ltd.     2,470       92,943  
LG International Corp.     9,975       92,399  
LIG Nex1 Co. Ltd.(b)     2,894       62,074  
Lock&Lock Co. Ltd.(a)     7,220       72,824  
Lotte Chilsung Beverage Co. Ltd.(a)     1,179       109,212  
LOTTE Fine Chemical Co. Ltd.     6,159       168,365  
LOTTE Himart Co. Ltd.     2,967       51,547  
Lotte Tour Development Co. Ltd.(a)     5,436       46,773  
LS Corp.     5,595       166,076  
LS Industrial Systems Co. Ltd.     4,439       159,358  
Maeil Dairies Co. Ltd.(a)     1,522       100,882  
Mando Corp.     9,788       240,167  
Mcnex Co. Ltd.     4,061       109,007  
Medipost Co. Ltd.(a)     5,194       118,463  
MeereCo. Inc.     1,701       35,855  
MegaStudyEdu Co. Ltd.(a)     2,717       93,177  
Meritz Financial Group Inc.     14,603       122,644  
Meritz Fire & Marine Insurance Co. Ltd.     15,030       181,919  
Mezzion Pharma Co. Ltd.(a)(b)     2,020       232,520  
Mirae Asset Life Insurance Co. Ltd.     28,556       93,815  
Mirae Asset Maps Asia Pacific Real Estate 1 Investment     27,764       106,530  
Modetour Network Inc.(a)     5,959       69,428  

 

58 2 0 2 0  I  S h a r e s  S e m i  -  A n n u a l  R e p o r t  t o  S h a r e h o l d e r s

 

 

 

 

Consolidated Schedule of Investments (unaudited) (continued) iShares® MSCI Emerging Markets Small-Cap ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
                 
South Korea (continued)                
Muhak Co. Ltd.(a)     6,556     $ 33,252  
Namhae Chemical Corp.(a)     8,291       47,377  
Naturecell Co. Ltd.(a)     15,593       93,211  
NEPES Corp.(a)(b)     5,417       130,240  
Nexen Tire Corp.(a)     12,327       65,162  
NHN Corp.(a)     3,211       184,279  
NHN KCP Corp.     4,644       113,758  
NICE Holdings Co. Ltd.(a)     7,767       131,742  
NICE Information Service Co. Ltd.(a)     10,866       139,572  
NKMax Co. Ltd.(a)     11,357       88,088  
NongShim Co. Ltd.     983       213,678  
Orion Holdings Corp.     8,556       100,389  
Oscotec Inc.(a)     6,506       108,478  
Osstem Implant Co. Ltd.(a)     3,802       101,741  
Paradise Co. Ltd.     15,298       206,577  
Partron Co. Ltd.     12,045       88,763  
Pharmicell Co. Ltd.(a)(b)     18,072       115,173  
Poongsan Corp.     6,195       104,058  
Posco ICT Co. Ltd.     22,820       83,802  
RFHIC Corp.     4,087       100,114  
S&T Motiv Co. Ltd.     2,859       92,397  
Sam Chun Dang Pharm Co. Ltd.     4,410       143,429  
Samjin Pharmaceutical Co. Ltd.     4,187       78,258  
Samwha Capacitor Co. Ltd.(b)     2,473       118,916  
Samyang Corp.     1,927       60,214  
Samyang Foods Co. Ltd.     1,546       108,837  
Samyang Holdings Corp.     1,338       54,148  
Sangsangin Co. Ltd.     13,165       84,009  
Seegene Inc.(a)     5,962       179,179  
Seojin System Co. Ltd.(a)     4,467       94,158  
Seoul Semiconductor Co. Ltd.(a)     11,960       147,223  
SFA Engineering Corp.     5,829       176,382  
SFA Semicon Co. Ltd.(a)     27,078       124,409  
Shinsegae International Inc.     766       115,736  
Silicon Works Co. Ltd.     3,747       101,658  
SillaJen Inc.(a)(b)     19,774       180,726  
SK Chemicals Co. Ltd.     2,414       114,290  
SK Discovery Co. Ltd.     3,811       67,779  
SK Gas Ltd.     1,091       69,709  
SK Materials Co. Ltd.     1,499       182,669  
SK Networks Co. Ltd.     44,735       159,492  
SKC Co. Ltd.     6,354       268,914  
SKCKOLONPI Inc.     4,883       134,690  
SL Corp.(a)     4,412       54,492  
SM Entertainment Co. Ltd.(a)     6,000       140,552  
Songwon Industrial Co. Ltd.     5,225       47,969  
Soulbrain Co. Ltd.     2,868       204,267  
SPC Samlip Co. Ltd.(a)     760       42,114  
STCUBE(a)(b)     7,362       59,648  
Taekwang Industrial Co. Ltd.(a)     162       107,511  
Taeyoung Engineering & Construction Co. Ltd.     12,186       129,436  
Taihan Fiberoptics Co. Ltd.(a)     21,581       49,666  
Telcon RF Pharmaceutical Inc.(a)     24,399       89,902  
Theragen Etex Co. Ltd.(a)     9,448       56,245  
Tokai Carbon Korea Co. Ltd.     1,733       94,605  
Tongyang Inc.(a)     68,813       79,040  
Tongyang Life Insurance Co. Ltd.     15,987       42,255  
Toptec Co. Ltd.     6,911       55,481  
Vieworks Co. Ltd.     2,639       65,405  
Webzen Inc.(a)     6,083       72,625  
Security   Shares     Value  
                 
South Korea (continued)                
Wemade Co. Ltd.     3,104     $ 77,185  
WONIK IPS Co. Ltd.(a)     8,836       226,629  
YG Entertainment Inc.(a)     3,147       78,513  
Young Poong Corp.(a)     193       94,394  
Youngone Corp.     7,896       204,795  
Yuanta Securities Korea Co. Ltd.(a)     36,212       69,919  
Yungjin Pharmaceutical Co. Ltd.(a)     30,951       127,678  
Yuyang DNU Co. Ltd.(a)     17,648       25,211  
              28,026,655  
Taiwan — 21.1%                
AcBel Polytech Inc.     160,000       123,384  
A-DATA Technology Co. Ltd.     66,000       146,475  
Advanced Ceramic X Corp.     13,000       127,083  
Advanced Wireless Semiconductor Co.     42,000       124,837  
AmTRAN Technology Co. Ltd.(a)     431,312       131,475  
Arcadyan Technology Corp.     38,541       100,173  
Ardentec Corp.     134,000       116,832  
Asia Optical Co. Inc.     69,000       190,733  
Asia Pacific Telecom Co. Ltd.(a)     549,910       134,029  
Asia Vital Components Co. Ltd.     101,000       110,074  
ASMedia Technology Inc.     8,000       205,816  
ASPEED Technology Inc.     9,000       281,180  
AURAS Technology Co. Ltd.     19,000       101,025  
BES Engineering Corp.     437,000       102,324  
Bizlink Holding Inc.     32,770       207,251  
Brighton-Best International Taiwan Inc.     174,000       163,487  
Capital Securities Corp.     576,530       187,547  
Career Technology MFG. Co. Ltd.     118,990       125,358  
Casetek Holdings Ltd.     43,816       60,053  
Cathay Real Estate Development Co. Ltd.     169,300       118,814  
Center Laboratories Inc.     92,474       158,198  
Century Iron & Steel Industrial Co. Ltd.     42,000       102,089  
Charoen Pokphand Enterprise     55,000       112,981  
Cheng Loong Corp.     266,000       207,761  
Cheng Uei Precision Industry Co. Ltd.     112,000       137,598  
Chicony Power Technology Co. Ltd.     58,000       112,822  
Chilisin Electronics Corp.     59,459       210,113  
China Bills Finance Corp.     292,000       147,063  
China General Plastics Corp.     141,966       91,192  
China Man-Made Fiber Corp.     484,223       116,260  
China Motor Corp.     92,200       107,183  
China Petrochemical Development Corp.     1,047,600       280,241  
China Steel Chemical Corp.     69,000       268,895  
Chin-Poon Industrial Co. Ltd.     105,000       103,857  
Chipbond Technology Corp.     167,000       322,644  
ChipMOS Technologies Inc.     173,000       168,261  
Chlitina Holding Ltd.     13,000       80,071  
Chong Hong Construction Co. Ltd.     56,424       152,429  
Chroma ATE Inc.     104,000       487,723  
Chung Hung Steel Corp.     355,000       106,220  
Chunghwa Precision Test Tech Co. Ltd.     6,000       160,505  
Cleanaway Co. Ltd.     31,000       162,783  
Clevo Co.     133,000       134,627  
CMC Magnetics Corp.(a)     322,238       85,137  
Compeq Manufacturing Co. Ltd.     305,000       392,840  
Concraft Holding Co. Ltd.     19,869       87,929  
Coretronic Corp.     118,400       144,288  
CSBC Corp. Taiwan(a)     81,455       62,141  
CTCI Corp.     154,000       188,180  
Cub Elecparts Inc.     17,992       120,028  

 

C o n s o l i d a t e d   S c h e d u l e   o f   I n v e s t m e n t s 59

 

 

 

 

Consolidated Schedule of Investments (unaudited) (continued) iShares® MSCI Emerging Markets Small-Cap ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
                 
Taiwan (continued)                
Darfon Electronics Corp.     66,000     $ 82,283  
Darwin Precisions Corp.     114,000       49,509  
E Ink Holdings Inc.     258,000       263,287  
Egis Technology Inc.     18,000       127,809  
Elan Microelectronics Corp.     85,000       235,803  
Elite Material Co. Ltd.     81,000       321,009  
Elite Semiconductor Memory Technology Inc.     102,000       115,712  
eMemory Technology Inc.     21,000       219,158  
Ennoconn Corp.     15,372       110,926  
Epistar Corp.     313,000       301,841  
Eternal Materials Co. Ltd.     334,399       297,629  
Everlight Electronics Co. Ltd.     118,000       123,146  
Far Eastern Department Stores Ltd.     309,000       247,469  
Far Eastern International Bank     676,518       263,641  
Faraday Technology Corp.     67,000       97,470  
Farglory Land Development Co. Ltd.     77,000       96,252  
Feng Hsin Steel Co. Ltd.     160,000       286,927  
Firich Enterprises Co. Ltd.     82,155       84,653  
FLEXium Interconnect Inc.     89,418       335,175  
Formosa Sumco Technology Corp.     24,000       110,966  
Foxsemicon Integrated Technology Inc.     19,200       105,893  
Fulgent Sun International Holding Co. Ltd.     31,000       108,522  
General Interface Solution Holding Ltd.     71,000       230,261  
Genius Electronic Optical Co. Ltd.     21,585       359,994  
Getac Technology Corp.     118,000       190,175  
Gigabyte Technology Co. Ltd.     156,000       268,419  
Ginko International Co. Ltd.     10,000       58,125  
Global Unichip Corp.     24,000       177,546  
Goldsun Building Materials Co. Ltd.     332,000       141,990  
Gourmet Master Co. Ltd.     23,821       74,344  
Grand Pacific Petrochemical(a)     285,000       155,303  
Grape King Bio Ltd.     37,000       268,829  
Great Wall Enterprise Co. Ltd.     197,789       263,244  
Greatek Electronics Inc.     108,000       168,352  
Hannstar Board Corp.     91,000       108,192  
HannStar Display Corp.     771,320       167,869  
Holtek Semiconductor Inc.     53,000       114,824  
Holy Stone Enterprise Co. Ltd.     41,050       136,926  
Hota Industrial Manufacturing Co. Ltd.     62,192       237,229  
Hsin Kuang Steel Co. Ltd.     100,000       96,600  
HTC Corp.     212,000       245,050  
Huaku Development Co. Ltd.     76,080       217,088  
Hung Sheng Construction Ltd.     163,520       111,517  
IBF Financial Holdings Co. Ltd.     689,869       258,591  
International CSRC Investment Holdings Co.     203,945       182,530  
International Games System Co. Ltd.     19,000       382,767  
ITEQ Corp.     54,600       258,759  
Jentech Precision Industrial Co. Ltd.     24,000       165,657  
Jih Sun Financial Holdings Co. Ltd.     388,444       128,030  
Johnson Health Tech Co. Ltd.     30,000       69,948  
Kenda Rubber Industrial Co. Ltd.     183,341       170,447  
Kindom Development Co. Ltd.     97,000       83,931  
King Slide Works Co. Ltd.     18,000       207,170  
King Yuan Electronics Co. Ltd.     317,000       342,864  
King's Town Bank Co. Ltd.     256,000       310,705  
Kinpo Electronics     438,000       192,388  
Kinsus Interconnect Technology Corp.     79,000       134,626  
LandMark Optoelectronics Corp.     21,400       187,995  
Lealea Enterprise Co. Ltd.     330,590       96,296  
Lien Hwa Industrial Holdings Corp.     253,068       317,594  
Security   Shares     Value  
                 
Taiwan (continued)                
Longchen Paper & Packaging Co. Ltd.     206,456     $ 124,094  
Lotes Co. Ltd.     21,968       214,750  
Lotus Pharmaceutical Co. Ltd.(a)     27,000       77,577  
Lung Yen Life Service Corp.     79,000       158,368  
Machvision Inc.     10,000       120,213  
Macronix International     546,000       595,056  
Makalot Industrial Co. Ltd.     58,036       284,626  
Mercuries & Associates Holding Ltd.     121,436       87,228  
Mercuries Life Insurance Co. Ltd.(a)     358,246       137,835  
Merida Industry Co. Ltd.     67,000       327,482  
Merry Electronics Co. Ltd.     54,224       251,605  
Mitac Holdings Corp.     244,985       275,491  
momo.com Inc.     14,000       163,444  
Nan Kang Rubber Tire Co. Ltd.     133,000       188,215  
Nan Ya Printed Circuit Board Corp.     68,000       119,024  
OBI Pharma Inc.(a)     43,184       162,584  
On-Bright Electronics Inc.     11,000       80,649  
Oriental Union Chemical Corp.     190,000       125,184  
Pan Jit International Inc.     93,900       75,357  
Pan-International Industrial Corp.     151,722       98,210  
Parade Technologies Ltd.     21,000       463,284  
PChome Online Inc.(a)     29,305       103,072  
PharmaEngine Inc.     32,756       66,205  
PharmaEssentia Corp.(a)     50,000       166,780  
Pharmally International Holding Co. Ltd.     21,603       148,398  
Pixart Imaging Inc.     39,635       244,123  
Poya International Co. Ltd.     17,453       274,941  
President Securities Corp.     273,741       124,759  
Primax Electronics Ltd.     109,000       176,210  
Prince Housing & Development Corp.     477,917       169,673  
Qisda Corp.     442,000       273,700  
Radiant Opto-Electronics Corp.     131,000       424,849  
Radium Life Tech Co. Ltd.     247,341       82,503  
Rexon Industrial Corp. Ltd.     40,000       75,034  
RichWave Technology Corp.     15,000       78,271  
Ritek Corp.(a)     548,218       96,682  
Roo Hsing Co. Ltd.(a)     174,000       57,752  
Run Long Construction Co. Ltd.     65,000       128,585  
Sanyang Motor Co. Ltd.     226,820       153,563  
ScinoPharm Taiwan Ltd.     92,708       86,953  
SDI Corp.     33,000       64,410  
Sercomm Corp.     67,000       163,299  
Shin Zu Shing Co. Ltd.     45,000       206,575  
Shinkong Synthetic Fibers Corp.     419,135       169,567  
Sigurd Microelectronics Corp.     125,124       140,911  
Silergy Corp.     21,000       703,942  
Simplo Technology Co. Ltd.     49,600       464,393  
Sinbon Electronics Co. Ltd.     66,000       285,540  
Sino-American Silicon Products Inc.     149,000       516,686  
Sinyi Realty Inc.     89,778       85,688  
Sitronix Technology Corp.     33,000       156,938  
Soft-World International Corp.     32,140       84,597  
Sporton International Inc.     22,330       154,867  
St. Shine Optical Co. Ltd.     14,000       182,632  
Sunny Friend Environmental Technology Co. Ltd.     20,000       164,798  
Supreme Electronics Co. Ltd.     133,000       136,824  
TA Chen Stainless Pipe     257,188       262,458  
Taichung Commercial Bank Co. Ltd.     891,156       363,473  
TaiDoc Technology Corp.     17,000       86,742  
TaiMed Biologics Inc.(a)     55,000       161,661  

 

60 2 0 2 0  I  S h a r e s  S e m i  -  A n n u a l  R e p o r t  t o  S h a r e h o l d e r s

 

 

 

 

Consolidated Schedule of Investments (unaudited) (continued) iShares® MSCI Emerging Markets Small-Cap ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
                 
Taiwan (continued)                
Tainan Spinning Co. Ltd.     475,190     $ 156,935  
Taiwan Cogeneration Corp.     137,000       153,155  
Taiwan Fertilizer Co. Ltd.     235,000       372,529  
Taiwan Glass Industry Corp.     427,000       143,135  
Taiwan Hon Chuan Enterprise Co. Ltd.     90,004       175,671  
Taiwan Paiho Ltd.     75,050       172,757  
Taiwan Secom Co. Ltd.     88,450       257,935  
Taiwan Semiconductor Co. Ltd.     66,000       95,689  
Taiwan Shin Kong Security Co. Ltd.     72,640       91,281  
Taiwan Styrene Monomer     196,000       119,751  
Taiwan Surface Mounting Technology Corp.     76,000       234,178  
Taiwan TEA Corp.     291,000       151,845  
Taiwan Union Technology Corp.     68,000       298,684  
TCI Co. Ltd.     26,528       190,115  
Teco Electric and Machinery Co. Ltd.     561,000       495,608  
Test Research Inc.     52,000       87,584  
Ton Yi Industrial Corp.     380,000       134,282  
Tong Hsing Electronic Industries Ltd.     45,000       225,152  
Tong Yang Industry Co. Ltd.     113,133       145,529  
Topco Scientific Co. Ltd.     56,000       192,341  
TPK Holding Co. Ltd.(a)     95,000       140,714  
Transcend Information Inc.     62,000       159,917  
Tripod Technology Corp.     123,000       446,837  
TSRC Corp.     222,000       157,265  
TTY Biopharm Co. Ltd.     68,450       176,779  
Tung Ho Steel Enterprise Corp.     346,000       257,105  
TXC Corp.     89,000       139,469  
U-Ming Marine Transport Corp.     146,000       141,277  
Unimicron Technology Corp.     384,000       507,274  
Union Bank of Taiwan(a)     514,530       186,920  
Unitech Printed Circuit Board Corp.     164,420       148,784  
United Integrated Services Co. Ltd.     45,400       275,133  
United Renewable Energy Co. Ltd.(a)     655,879       151,409  
UPC Technology Corp.     349,741       115,042  
USI Corp.     382,070       150,786  
Visual Photonics Epitaxy Co. Ltd.     47,425       153,335  
Voltronic Power Technology Corp.     17,080       396,547  
Wafer Works Corp.     145,681       164,303  
Wah Lee Industrial Corp.     85,000       153,833  
Walsin Lihwa Corp.     788,000       363,038  
Wistron NeWeb Corp.     85,481       194,792  
WT Microelectronics Co. Ltd.     96,757       122,067  
XinTec Inc.(a)     52,000       152,671  
Xxentria Technology Materials Corp.     67,000       137,631  
Yang Ming Marine Transport Corp.(a)     380,820       87,157  
YFY Inc.     508,000       233,201  
Yieh Phui Enterprise Co. Ltd.     459,797       137,729  
Yulon Finance Corp.     42,800       151,244  
Yulon Motor Co. Ltd.     264,000       177,863  
YungShin Global Holding Corp.     85,200       124,088  
Yungtay Engineering Co. Ltd.     62,000       120,808  
              40,674,768  
Thailand — 3.5%                
AEON Thana Sinsap Thailand PCL, NVDR     25,800       113,240  
Amata Corp. PCL, NVDR     270,600       124,345  
AP Thailand PCL, NVDR     822,800       159,058  
Asia Aviation PCL, NVDR(a)(b)     1,320,500       53,983  
Bangchak Corp. PCL, NVDR(b)     340,800       259,204  
Bangkok Airways PCL, NVDR     402,400       59,426  
Bangkok Chain Hospital PCL, NVDR     437,200       181,503  
Security   Shares     Value  
                 
Thailand (continued)                
Bangkok Land PCL, NVDR     5,602,600     $ 182,877  
Bangkok Life Assurance PCL, NVDR     174,200       85,568  
Beauty Community PCL, NVDR(b)     741,200       44,629  
Central Plaza Hotel PCL, NVDR     142,500       81,287  
CH Karnchang PCL, NVDR(b)     369,500       220,143  
Chularat Hospital PCL, NVDR(b)     1,995,800       158,121  
CK Power PCL, NVDR     798,100       95,605  
Com7 PCL, NVDR     210,800       148,305  
Eastern Polymer Group PCL, NVDR     412,900       52,864  
Eastern Water Resources Development and Management                
PCL, NVDR     374,600       127,023  
Esso Thailand PCL, NVDR     352,000       66,931  
GFPT PCL, NVDR     212,300       71,989  
Gunkul Engineering PCL, NVDR(b)     1,568,899       122,310  
Hana Microelectronics PCL, NVDR     190,100       201,817  
Italian-Thai Development PCL, NVDR     1,617,700       59,469  
Jasmine International PCL, NVDR     1,147,200       175,961  
KCE Electronics PCL, NVDR     233,300       163,395  
Khon Kaen Sugar Industry PCL, NVDR     933,930       62,745  
Kiatnakin Bank PCL, NVDR     96,332       190,039  
LPN Development PCL, NVDR     557,500       74,204  
Major Cineplex Group PCL, NVDR(b)     234,000       140,155  
MBK PCL, NVDR     405,900       228,966  
Mega Lifesciences PCL, NVDR     134,700       106,718  
Plan B Media PCL, NVDR     741,500       119,843  
Pruksa Holding PCL, NVDR     236,600       107,222  
PTG Energy PCL, NVDR.     232,500       103,890  
Quality Houses PCL, NVDR     3,116,267       223,190  
Sansiri PCL, NVDR(b)     5,135,400       115,548  
Siam Global House PCL, NVDR(b)     483,679       211,528  
Siamgas & Petrochemicals PCL, NVDR     296,800       74,306  
Sino-Thai Engineering & Construction PCL, NVDR     314,528       148,517  
Sri Trang Agro-Industry PCL, NVDR     314,980       117,787  
Star Petroleum Refining PCL, NVS(b)     484,500       121,298  
Supalai PCL, NVDR     519,800       266,860  
Super Energy Corp. PCL, NVDR     4,900,800       60,571  
Taokaenoi Food & Marketing PCL, Class R, NVDR(b)     197,900       49,859  
Thai Airways International PCL, NVDR(a)(b)     329,100       40,675  
Thai Vegetable Oil PCL, NVDR(b)     211,400       184,234  
Thanachart Capital PCL, NVDR     110,300       184,387  
Thonburi Healthcare Group PCL, NVDR     186,600       133,053  
Tipco Asphalt PCL, NVDR     221,000       131,668  
TTW PCL, NVDR(b)     550,700       242,584  
U City PCL, NVDR(a)(b).     1,250,600       48,748  
WHA Corp. PCL, NVDR     2,839,500       246,561  
Workpoint Entertainment PCL, NVDR     81,200       22,388  
              6,766,597  
Turkey — 1.3%                
Aygaz AS     27,730       50,586  
Coca-Cola Icecek AS     24,878       179,541  
Dogan Sirketler Grubu Holding AS     342,076       94,151  
Emlak Konut Gayrimenkul Yatirim Ortakligi AS     626,465       139,342  
Enerjisa Enerji AS(c)     94,543       117,852  
Kardemir Karabuk Demir Celik Sanayi ve Ticaret AS,                
Class D(b)     341,583       142,116  
Koza Altin Isletmeleri AS(a)     14,782       172,674  
Koza Anadolu Metal Madencilik Isletmeleri AS(a)     65,036       117,599  
Mavi Giyim Sanayi Ve Ticaret AS, Class B(a)(c)     13,692       117,218  
MLP Saglik Hizmetleri AS(a)(b)(c)     28,407       67,685  
Otokar Otomotiv Ve Savunma Sanayi AS     4,322       104,432  

 

C o n s o l i d a t e d   S c h e d u l e   o f   I n v e s t m e n t s 61

 

 

 

 

Consolidated Schedule of Investments (unaudited) (continued) iShares® MSCI Emerging Markets Small-Cap ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
                 
Turkey (continued)                
Pegasus Hava Tasimaciligi AS(a)(b)     11,799     $ 101,956  
Petkim Petrokimya Holding AS(a)(b)     341,228       198,755  
Sasa Polyester Sanayi AS     54,297       75,764  
Soda Sanayii AS     141,095       130,726  
Tekfen Holding AS     65,404       155,419  
Trakya Cam Sanayii AS     190,670       101,906  
Turkiye Halk Bankasi AS(a)     193,128       184,807  
Ulker Biskuvi Sanayi AS(a)     52,966       173,580  
              2,426,109  
United Arab Emirates — 0.7%                
Air Arabia PJSC(a)     854,789       325,820  
Amanat Holdings PJSC     529,062       114,948  
Arabtec Holding PJSC     237,882       48,251  
Dana Gas PJSC     1,199,770       285,823  
Drake & Scull International PJSC(a)(d)     241,185       18,137  
Dubai Financial Market PJSC(a)     639,700       153,267  
Dubai Investments PJSC     692,880       239,581  
DXB Entertainments PJSC(a)     1,709,562       82,851  
              1,268,678  
                 
Total Common Stocks — 97.5%                
(Cost: $200,374,866)           187,672,691  
                 
Preferred Stocks                
                 
Brazil — 2.1%                
Alpargatas SA, Preference Shares, NVS     61,950       433,079  
Azul SA, Preference Shares, NVS     83,500       822,480  
Banco ABC Brasil SA, Preference Shares, NVS     25,269       111,905  
Banco do Estado do Rio Grande do Sul SA, Class B,                
Preference Shares, NVS     59,800       240,570  
Bradespar SA, Preference Shares, NVS     66,600       492,896  
Cia. de Saneamento do Parana, Preference Shares, NVS     27,300       119,810  
Cia. Energetica de Sao Paulo, Class B, Preference                
Shares, NVS     57,000       411,867  
Cia. Paranaense de Energia, Preference Shares, NVS     30,400       483,190  
Gol Linhas Aereas Inteligentes SA, Preference                
Shares, NVS     30,900       175,333  
Marcopolo SA, Preference Shares, NVS     161,569       175,476  
Security   Shares     Value  
                 
Brazil (continued)                
Metalurgica Gerdau SA, Preference Shares, NVS     219,900     $ 387,487  
Randon SA Implemetos e Participacoes, Preference                
Shares, NVS     53,725       139,086  
Unipar Carbocloro SA, Preference Shares, NVS     15,483       91,972  
              4,085,151  
Colombia — 0.0%                
Avianca Holdings SA, Preference Shares, NVS     114,677       53,022  
                 
Total Preferred Stocks — 2.1%                
(Cost: $2,909,587)             4,138,173  
                 
Short-Term Investments                
                 
Money Market Funds — 5.5%                
BlackRock Cash Funds: Institutional, SL Agency Shares, 1.74%(g)(h)(i)     10,543,814       10,551,195  
                 
Total Short-Term Investments — 5.5%                
(Cost: $10,544,983)             10,551,195  
                 
Total Investments in Securities — 105.1%                
(Cost: $213,829,436)             202,362,059  
                 
Other Assets, Less Liabilities — (5.1)%             (9,795,656 )
                 
Net Assets — 100.0%           $ 192,566,403  

 

(a) Non-income producing security.

(b) All or a portion of this 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) Rounds to less than $1.

(f) This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933.

(g) Affiliate of the Fund.

(h) Annualized 7-day yield as of period-end.

(i) All or a portion of this security was purchased with cash collateral received from loaned securities.


 

Affiliates

 

Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940Act, were as follows:

 

                                        Change in  
    Shares           Shares                       Unrealized  
    Held at           Held at     Value at           Net Realized     Appreciation  
Affiliated Issuer   08/31/19     Net Activity     02/29/20     02/29/20     Income     Gain (Loss)(a)     (Depreciation)  
BlackRock Cash Funds: Institutional, SL Agency Shares     17,922,363       (7,378,549 )   10,543,814     $ 10,551,195     $ 337,358 (b)   $ 3,678     $ (1,705 )
BlackRock Cash Funds: Treasury, SL Agency Shares     110,000       (110,000 )               3,021              
                          $ 10,551,195     $ 340,379     $ 3,678     $ (1,705 )

 

(a) Includes realized capital gain distributions from an affiliated fund, if any.
(b) Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

 

62 2 0 2 0  I  S h a r e s  S e m i  -  A n n u a l  R e p o r t  t o  S h a r e h o l d e r s

  

 

 

 

 

Consolidated Schedule of Investments (unaudited) (continued) iShares® MSCI Emerging Markets Small-Cap ETF
February 29, 2020  

 

Futures Contracts

 

                      Value/  
                Notional     Unrealized  
    Number of     Expiration     Amount     Appreciation  
Description     Contracts       Date       (000 )     (Depreciation)  
Long Contracts                                
MSCI Emerging Markets E-Mini     12       03/20/20     $ 605     $ (62,071 )

 

Derivative Financial Instruments Categorized by Risk Exposure

 

As of February 29, 2020, the fair values of derivative financial instruments located in the Consolidated Statements of Assets and Liabilities were as follows:

 

    Equity  
    Contracts  
Liabilities — Derivative Financial Instruments        
Futures contracts        
Unrealized depreciation on futures contracts(a)   $ 62,071  

 

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

 

For the six months ended February 29, 2020, the effect of derivative financial instruments in the Consolidated Statements of Operations was as follows:

 

    Equity  
    Contracts  
Net Realized Gain (Loss) from:        
Futures contracts   $ 67,700  
         
Net Change in Unrealized Appreciation (Depreciation) on:        
Futures contracts   $ (80,625 )

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:      
Average notional value of contracts — long   $ 754,660  

 

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

 

Fair Value Measurements

 

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

 

The following table summarizes the value of the Fund's investments according to the fair value hierarchy as of February 29, 2020 The breakdown of the Fund's investments into major categories is disclosed in the Consolidated Schedule of Investments above.

 

    Level 1     Level 2     Level 3     Total  
Investments                        
Assets                        
Common Stocks   $ 187,123,013     $ 66,041     $ 483,637     $ 187,672,691  
Preferred Stocks     4,138,173                   4,138,173  
Money Market Funds     10,551,195                   10,551,195  
    $ 201,812,381     $ 66,041     $ 483,637     $ 202,362,059  
Derivative financial instruments(a)                                
Liabilities                                
Futures Contracts   $ (62,071 )   $     $     $ (62,071 )

 

(a) Shown at the unrealized appreciation (depreciation) on the contracts.

 

See notes to consolidated financial statements.

 

C o n s o l i d a t e d   S c h e d u l e   o f   I n v e s t m e n t s 63

 

 

 

 

Consolidated Statements of Assets and Liabilities (unaudited)

February 29, 2020

 

                      iShares  
                iShares     MSCI  
    iShares           MSCI     Emerging  
    Core MSCI     iShares     Emerging     Markets  
    Emerging Markets     MSCI BRIC     Markets Asia     Small-Cap  
    ETF     ETF     ETF     ETF  
                         
ASSETS                                
Investments in securities, at value (including securities on loan)(a)                                
Unaffiliated(b)   $ 55,179,310,503     $ 259,092,630     $ 487,848,505     $ 191,810,864  
Affiliated(c)     1,663,088,911       5,757,547       7,964,745       10,551,195  
Cash     32,126,431       914       938       395,789  
Foreign currency, at value(d)     136,204,190       249,715       88,506       290,446  
Cash pledged:                                
Futures contracts     5,704,200       22,000       45,000       32,000  
Foreign currency collateral pledged:                                
Futures contracts(e)           11,421       17,066        
Receivables:                                
Investments sold     526,306,601       1,674,489       5,831       18,576,887  
Securities lending income — Affiliated     3,695,057       4,267       8,503       44,444  
Capital shares sold     13,367                   114,730  
Dividends     127,366,504       224,982       1,044,260       454,292  
Tax reclaims     694,695                   3,032  
Total assets     57,674,510,459       267,037,965       497,023,354       222,273,679  
                                 
LIABILITIES                                
Collateral on securities loaned, at value     1,658,829,667       5,372,866       7,331,487       10,542,834  
Deferred foreign capital gain tax     18,195,244             51,091        
Payables:                                
Investments purchased     334,186,585       1,542,536             1,819,198  
Variation margin on futures contracts     390,939       1,522       5,558       2,160  
Bank borrowings     9,101,272                   262,535  
Capital shares redeemed     331,029,979                   16,954,929  
Investment advisory fees     5,289,842       148,140       201,294       119,053  
Professional fees     938                    
Foreign taxes     537,957             454       6,567  
Total liabilities     2,357,562,423       7,065,064       7,589,884       29,707,276  
                                 
NET ASSETS   $ 55,316,948,036     $ 259,972,901     $ 489,433,470     $ 192,566,403  
                                 
NET ASSETS CONSIST OF:                                
Paid-in capital   $ 56,969,020,648     $ 485,889,174     $ 509,333,935     $ 250,601,342  
Accumulated loss     (1,652,072,612 )     (225,916,273 )     (19,900,465 )     (58,034,939 )
NET ASSETS   $ 55,316,948,036     $ 259,972,901     $ 489,433,470     $ 192,566,403  
                                 
Shares outstanding     1,142,400,000       6,200,000       7,500,000       4,750,000  
Net asset value   $ 48.42     $ 41.93     $ 65.26     $ 40.54  
Shares authorized     2.3 billion       500 million       500 million       500 million  
Par value   $ 0.001     $ 0.001     $ 0.001     $ 0.001  
                                 
(a) Securities loaned, at value   $ 1,526,844,623     $ 5,117,798     $ 6,952,070     $ 9,279,627  
(b) Investments, at cost — Unaffiliated   $ 51,936,192,113     $ 260,515,816     $ 455,372,721     $ 203,284,453  
(c) Investments, at cost — Affiliated   $ 1,661,970,331     $ 5,756,148     $ 7,961,340     $ 10,544,983  
(d) Foreign currency, at cost   $ 137,132,722     $ 253,399     $ 88,671     $ 296,090  
(e) Foreign currency collateral pledged, at cost   $     $ 11,462     $ 17,082     $  

 

See notes to consolidated financial statements.

 

64 2 0 2 0  I  S h a r e s  S e m i  -  A n n u a l  R e p o r t  t o  S h a r e h o l d e r s

 

 

 

 

Consolidated Statements of Operations (unaudited)

Six Months Ended February 29, 2020

 

                      iShares  
                iShares     MSCI  
    iShares           MSCI     Emerging  
    Core MSCI     iShares     Emerging     Markets  
    Emerging Markets     MSCI BRIC     Markets Asia     Small-Cap  
    ETF     ETF     ETF     ETF  
                         
INVESTMENT INCOME                                
Dividends — Unaffiliated   $ 521,139,029     $ 1,370,575     $ 3,221,921     $ 2,069,821  
Dividends — Affiliated     894,811       2,716       6,270       3,021  
Non-cash dividends — Unaffiliated     335,690,356                    
Interest — Unaffiliated     79,896       127       293       243  
Securities lending income — Affiliated — net(a)     26,465,171       31,596       92,336       337,358  
Other income — Unaffiliated     5,181                    
Foreign taxes withheld     (56,678,796 )     (105,308 )     (389,817 )     (168,186 )
Foreign withholding tax claims     9,380                    
Other foreign taxes     (86,843 )           (1,005 )     (614 )
Total investment income     827,518,185       1,299,706       2,929,998       2,241,643  
                                 
EXPENSES                                
Investment advisory fees     40,523,623       651,360       1,143,062       717,379  
Commitment fees     164,715       887       1,770       958  
Professional fees     938                    
Mauritius income taxes     1,400,098       8,650       15,487       10,876  
Interest expense     42,049       930       1,404       1,276  
Total expenses     42,131,423       661,827       1,161,723       730,489  
Less:                                
Investment advisory fees waived     (1,605,491 )                  
Total expenses after fees waived     40,525,932       661,827       1,161,723       730,489  
Net investment income     786,992,253       637,879       1,768,275       1,511,154  
                                 
REALIZED AND UNREALIZED GAIN (LOSS)                                
Net realized gain (loss) from:                                
Investments — Unaffiliated(b)     (602,752,974 )     (1,967,486 )     (2,072,030 )     (11,025,228 )
Investments — Affiliated     175,766       (293 )     527       3,678  
In-kind redemptions — Unaffiliated     200,850,047             5,512,349       68,617  
Futures contracts     9,191,415       62,114       97,744       67,700  
Foreign currency transactions     (1,298,247 )     (43,027 )     (38,196 )     44,577  
Net realized gain (loss)     (393,833,993 )     (1,948,692 )     3,500,394       (10,840,656 )
Net change in unrealized appreciation (depreciation) on:                                
Investments — Unaffiliated(c)     831,224,711       2,551,967       12,309,613       7,612,811  
Investments — Affiliated     153,675       1,175       1,624       (1,705 )
Futures contracts     (4,579,401 )     (33,115 )     (116,799 )     (80,625 )
Foreign currency translations     (5,973,472 )     (14,199 )     (40,755 )     (67,325 )
Net change in unrealized appreciation (depreciation)     820,825,513       2,505,828       12,153,683       7,463,156  
Net realized and unrealized gain (loss)     426,991,520       557,136       15,654,077       (3,377,500 )
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS   $ 1,213,983,773     $ 1,195,015     $ 17,422,352     $ (1,866,346 )
                                 
(a) Net of securities lending income tax paid of   $ 1,250,700     $     $     $  
(b) Net of foreign capital gain tax of   $ 127,099     $     $ 614     $  
(c) Net of deferred foreign capital gain tax of   $ (1,230,379 )   $     $ (133,522 )   $  

 

See notes to consolidated financial statements.

 

C o n s o l i d a t e d  F i n a n c i a l  S t a t e m e n t s 65

 

 

 

 

Consolidated Statements of Changes in Net Assets

 

    iShares     iShares  
    Core MSCI Emerging Markets ETF     MSCI BRIC ETF  
      Six Months Ended               Six Months Ended          
      02/29/20       Year Ended       02/29/20       Year Ended  
      (unaudited)       08/31/19       (unaudited)       08/31/19  
                                 
INCREASE (DECREASE) IN NET ASSETS                                
                                 
OPERATIONS                                
Net investment income   $ 786,992,253     $ 1,508,745,729     $ 637,879     $ 3,448,535  
Net realized gain (loss)     (393,833,993 )     (2,080,355,186 )     (1,948,692 )     22,254,730  
Net change in unrealized appreciation (depreciation)     820,825,513       (1,880,589,481 )     2,505,828       (19,645,277 )
Net increase (decrease) in net assets resulting from operations     1,213,983,773       (2,452,198,938 )     1,195,015       6,057,988  
                                 
DISTRIBUTIONS TO SHAREHOLDERS(a)                                
Decrease in net assets resulting from distributions to shareholders     (1,344,119,301 )     (1,444,387,321 )     (2,044,716 )     (4,010,086 )
                                 
CAPITAL SHARE TRANSACTIONS                                
Net increase (decrease) in net assets derived from capital share transactions     2,426,785,602       7,837,158,637       99,896,319       (46,185,765 )
                                 
NET ASSETS                                
Total increase (decrease) in net assets     2,296,650,074       3,940,572,378       99,046,618       (44,137,863 )
Beginning of period     53,020,297,962       49,079,725,584       160,926,283       205,064,146  
End of period   $ 55,316,948,036     $ 53,020,297,962     $ 259,972,901     $ 160,926,283  

 

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

 

See notes to consolidated financial statements.

 

66 2 0 2 0  I  S h a r e s  S e m i  -  A n n u a l  R e p o r t  t o  S h a r e h o l d e r s

 

 

 

 

Consolidated Statements of Changes in Net Assets (continued)

 

                iShares  
    iShares     MSCI Emerging Markets Small-Cap  
    MSCI Emerging Markets Asia ETF     ETF  
    Six Months           Six Months        
    Ended           Ended        
    02/29/20     Year Ended     02/29/20     Year Ended  
    (unaudited)     08/31/19     (unaudited)     08/31/19  
                         
INCREASE (DECREASE) IN NET ASSETS                                
                                 
OPERATIONS                                
Net investment income   $ 1,768,275     $ 9,018,925     $ 1,511,154     $ 5,737,900  
Net realized gain (loss)     3,500,394       (7,607,049 )     (10,840,656 )     (12,756,567 )
Net change in unrealized appreciation (depreciation)     12,153,683       (35,810,298 )     7,463,156       (19,596,766 )
Net increase (decrease) in net assets resulting from operations     17,422,352       (34,398,422 )     (1,866,346 )     (26,615,433 )
                                 
DISTRIBUTIONS TO SHAREHOLDERS(a)                                
Decrease in net assets resulting from distributions to shareholders     (6,746,947 )     (9,103,744 )     (3,959,438 )     (6,815,245 )
                                 
CAPITAL SHARE TRANSACTIONS                                
Net increase (decrease) in net assets derived from capital share transactions     26,430,266       55,291,785       (40,309,546 )     10,108,698  
                                 
NET ASSETS                                
Total increase (decrease) in net assets     37,105,671       11,789,619       (46,135,330 )     (23,321,980 )
Beginning of period     452,327,799       440,538,180       238,701,733       262,023,713  
End of period   $ 489,433,470     $ 452,327,799     $ 192,566,403     $ 238,701,733  

 

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

 

See notes to consolidated financial statements.

 

C o n s o l i d a t e d  F i n a n c i a l  S t a t e m e n t s 67

 

 

 

 

Consolidated Financial Highlights

(For a share outstanding throughout each period)

 

    iShares Core MSCI Emerging Markets ETF  
    Six Months Ended                                
    02/29/20     Year Ended     Year Ended     Year Ended     Year Ended     Year Ended  
    (unaudited)     08/31/19     08/31/18     08/31/17     08/31/16     08/31/15  
                                     
Net asset value, beginning of period   $ 48.31     $ 52.27     $ 53.91     $ 44.60     $ 40.75     $ 53.89  
Net investment income(a)     0.70       1.40       1.39       1.31       1.20       1.21  
Net realized and unrealized gain (loss)(b)     0.61       (4.01 )     (1.61 )     8.95       3.58       (13.26 )
Net increase (decrease) from investment operations     1.31       (2.61 )     (0.22 )     10.26       4.78       (12.05 )
                                                 
Distributions(c)                                                
From net investment income     (1.20 )     (1.35 )     (1.42 )     (0.95 )     (0.93 )     (1.09 )
Total distributions     (1.20 )     (1.35 )     (1.42 )     (0.95 )     (0.93 )     (1.09 )
                                                 
Net asset value, end of period   $ 48.42     $ 48.31     $ 52.27     $ 53.91     $ 44.60     $ 40.75  
                                                 
Total Return                                                
Based on net asset value     2.53 %(d)     (4.93 )%(e)     (0.52 )%     23.45 %     11.99 %     (22.61 )%
                                                 
Ratios to Average Net Assets                                                
Total expenses     0.15 %(f)     0.14 %     0.14 %     0.15 %     0.17 %     0.18 %
Total expenses after fees waived     0.14 %(f)     0.14 %     0.14 %     0.14 %     0.17 %     0.18 %
Total expenses excluding professional fees for foreign withholding tax claims     0.15 %(f)     0.14 %     N/A       N/A       N/A       N/A  
Net investment income     2.72 %(f)     2.79 %     2.48 %     2.74 %     2.93 %     2.49 %
                                                 
Supplemental Data                                                
Net assets, end of period (000)   $ 55,316,948     $ 53,020,298     $ 49,079,726     $ 36,775,298     $ 16,003,488     $ 7,025,331  
Portfolio turnover rate(g)     5 %(d)     15 %     6 %     4 %     10 %     7 %

 

(a) Based on average shares outstanding.

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

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

(d) Not annualized.

(e) Reflects the one-time, positive effect of foreign withholding tax claims, net of the associated professional fees, which resulted in the following increases for the year ended August 31, 2019:

• Total return by 0.01%.

(f) Annualized.

(g) Portfolio turnover rate excludes in-kind transactions.

 

See notes to consolidated financial statements.

 

68 2 0 2 0  I  S h a r e s  S e m i  -  A n n u a l  R e p o r t  t o  S h a r e h o l d e r s

 

 

 

 

Consolidated Financial Highlights (continued) 

(For a share outstanding throughout each period)

 

    iShares MSCI BRIC ETF  
      Six Months Ended                                          
      02/29/20       Year Ended       Year Ended       Year Ended       Year Ended       Year Ended  
      (unaudited)       08/31/19       08/31/18       08/31/17       08/31/16       08/31/15  
                                                 
Net asset value, beginning of period   $ 40.23     $ 41.01     $ 42.21     $ 33.48     $ 30.74     $ 41.12  
Net investment income(a)     0.15       0.69       0.68       0.70       0.64       0.77  
Net realized and unrealized gain (loss)(b)     2.06       (0.59 )     (1.13 )     8.57       2.84       (10.20 )
Net increase (decrease) from investment operations     2.21       0.10       (0.45 )     9.27       3.48       (9.43 )
                                                 
Distributions(c)                                                
From net investment income     (0.51 )     (0.88 )     (0.75 )     (0.54 )     (0.74 )     (0.95 )
Total distributions     (0.51 )     (0.88 )     (0.75 )     (0.54 )     (0.74 )     (0.95 )
                                                 
Net asset value, end of period   $ 41.93     $ 40.23     $ 41.01     $ 42.21     $ 33.48     $ 30.74  
                                                 
Total Return                                                
Based on net asset value     5.43 %(d)     0.35 %     (1.16 )%     28.15 %     11.61 %     (23.19 )%
                                                 
Ratios to Average Net Assets                                                
Total expenses     0.70 %(e)     0.69 %     0.67 %     0.70 %     0.73 %     0.69 %
Net investment income     0.67 %(e)     1.69 %     1.51 %     1.96 %     2.13 %     2.07 %
                                                 
Supplemental Data                                                
Net assets, end of period (000)   $ 259,973     $ 160,926     $ 205,064     $ 261,702     $ 182,488     $ 196,758  
Portfolio turnover rate(f)     7 %(d)     53 %     22 %     24 %     20 %     9 %

 

(a) Based on average shares outstanding.

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

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

(d) Not annualized.

(e) Annualized.

(f) Portfolio turnover rate excludes in-kind transactions.

 

See notes to consolidated financial statements.

 

C o n s o l i d a t e d  F i n a n c i a l  H i g h l i g h t s 69

 

 

 

 

Consolidated Financial Highlights (continued) 

(For a share outstanding throughout each period)

 

    iShares MSCI Emerging Markets Asia ETF  
      Six Months Ended                                          
      02/29/20       Year Ended       Year Ended       Year Ended       Year Ended       Year Ended  
      (unaudited)       08/31/19       08/31/18       08/31/17       08/31/16       08/31/15  
                                                 
Net asset value, beginning of period   $ 62.82     $ 69.38     $ 69.15     $ 56.33     $ 50.87     $ 62.08  
Net investment income(a)     0.26       1.26       1.16       1.31       1.02       1.25  
Net realized and unrealized gain (loss)(b)     3.19       (6.52 )     0.42       12.43       5.54       (11.61 )
Net increase (decrease) from investment operations     3.45       (5.26 )     1.58       13.74       6.56       (10.36 )
                                                 
Distributions(c)                                                
From net investment income     (1.01 )     (1.30 )     (1.35 )     (0.92 )     (1.10 )     (0.85 )
Total distributions     (1.01 )     (1.30 )     (1.35 )     (0.92 )     (1.10 )     (0.85 )
                                                 
Net asset value, end of period   $ 65.26     $ 62.82     $ 69.38     $ 69.15     $ 56.33     $ 50.87  
                                                 
Total Return                                                
Based on net asset value     5.38 %(d)     (7.52 )%     2.22 %     24.80 %     13.14 %     (16.86 )%
                                                 
Ratios to Average Net Assets                                                
Total expenses     0.50 %(e)     0.50 %     0.50 %     0.49 %     0.66 %     0.68 %
Total expenses after fees waived     0.50 %(e)     0.50 %     0.50 %     0.49 %     0.49 %     0.49 %
Net investment income     0.76 %(e)     1.94 %     1.58 %     2.16 %     1.98 %     2.10 %
                                                 
Supplemental Data                                                
Net assets, end of period (000)   $ 489,433     $ 452,328     $ 440,538     $ 501,330     $ 216,863     $ 124,637  
Portfolio turnover rate(f)     13 %(d)     16 %     33 %     15 %     22 %     16 %

 

(a) Based on average shares outstanding.

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

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

(d) Not annualized.

(e) Annualized.

(f) Portfolio turnover rate excludes in-kind transactions.

 

See notes to consolidated financial statements.

 

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Consolidated Financial Highlights (continued) 

(For a share outstanding throughout each period)

 

    iShares MSCI Emerging Markets Small-Cap ETF  
      Six Months Ended                                          
      02/29/20       Year Ended       Year Ended       Year Ended       Year Ended       Year Ended  
      (unaudited)       08/31/19       08/31/18       08/31/17       08/31/16       08/31/15  
                                                 
Net asset value, beginning of period   $ 41.51     $ 47.64     $ 49.23     $ 43.27     $ 40.06     $ 51.37  
Net investment income(a)     0.32       0.99       1.10       1.04       0.90       1.04  
Net realized and unrealized gain (loss)(b)     (0.44 )     (5.98 )     (1.22 )     5.81       3.36       (11.06 )
Net increase (decrease) from investment operations     (0.12 )     (4.99 )     (0.12 )     6.85       4.26       (10.02 )
                                                 
Distributions(c)                                                
From net investment income     (0.85 )     (1.14 )     (1.47 )     (0.89 )     (1.05 )     (1.29 )
Total distributions     (0.85 )     (1.14 )     (1.47 )     (0.89 )     (1.05 )     (1.29 )
                                                 
Net asset value, end of period   $ 40.54     $ 41.51     $ 47.64     $ 49.23     $ 43.27     $ 40.06  
                                                 
Total Return                                                
Based on net asset value     (0.46 )%(d)     (10.50 )%     (0.38 )%     16.17 %     10.83 %     (19.77 )%
                                                 
Ratios to Average Net Assets                                                
Total expenses     0.70 %(e)     0.69 %     0.67 %     0.69 %     0.71 %     0.69 %
Net investment income     1.45 %(e)     2.25 %     2.14 %     2.32 %     2.20 %     2.20 %
                                                 
Supplemental Data                                                
Net assets, end of period (000)   $ 192,566     $ 238,702     $ 262,024     $ 253,519     $ 121,151     $ 76,120  
Portfolio turnover rate(f)     28 %(d)     29 %     39 %     19 %     24 %     23 %

 

(a) Based on average shares outstanding.
(b) The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.
(c) Distributions for annual periods determined in accordance with U.S. federal income tax regulations.
(d) Not annualized.
(e) Annualized.
(f) Portfolio turnover rate excludes in-kind transactions.

 

See notes to consolidated financial statements.

 

C o n s o l i d a t e d  F i n a n c i a l  H i g h l i g h t s 71

 

 

 

 

 

 

Notes to Consolidated Financial Statements (unaudited)

 

1 ORGANIZATION

 

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

 

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

 

  Diversification
iShares ETF Classification
Core MSCI Emerging Markets Diversified
MSCI BRIC Diversified
MSCI Emerging Markets Asia Diversified
MSCI Emerging Markets Small-Cap Diversified

 

Basis of Consolidation The accompanying consolidated financial statements for each Fund includes the accounts of its subsidiary in the Republic of Mauritius, which is a wholly-owned subsidiary (each, a “Subsidiary”) of the Fund that invests in Indian securities. Through this investment structure, each Fund expects to obtain certain benefits under a current tax treaty between Mauritius and India. Intercompany accounts and transactions, if any, have been eliminated.

 

2 SIGNIFICANT ACCOUNTING POLICIES

 

The following significant accounting policies are consistently followed by each Fund in the preparation of its consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies.

 

Investment Transactions and Income Recognition: Investment transactions are accounted for on trade date. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recognized on the ex-dividend date, net of any foreign taxes withheld at source. Any taxes withheld that are reclaimable from foreign tax authorities are reflected in tax reclaims receivable. Distributions received by the Funds may include a return of capital that is estimated by management. Such amounts are recorded as a reduction of the cost of investments or reclassified to capital gains. Upon notification from issuers, some of the dividend income received from a real estate investment trust may be re-designated as a return of capital or capital gain. Non-cash dividends, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Interest income is accrued daily.

 

Foreign Currency Translation: The accounting records of the Funds are maintained in U.S. dollars. Foreign currencies, as well as investment securities and other assets and liabilities denominated in non-U.S. currencies are translated to U.S. dollars using prevailing market rates as quoted by one or more data service providers. Purchases and sales of investments, income receipts and expense payments are translated into U.S. dollars on the respective dates of such transactions.

 

Each Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of investments. Such fluctuations are reflected by the Funds as a component of net realized and unrealized gain (loss) from investments for financial reporting purposes. Each Fund reports realized currency gain (loss) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for U.S. federal income tax purposes.

 

Foreign Taxes: The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which each Fund invests. These foreign taxes, if any, are paid by each Fund and are reflected in its consolidated statement of operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of February 29, 2020, if any, are disclosed in the consolidated statement of assets and liabilities.

 

Each Fund conducts its investment activities in India through its Subsidiary and expects to obtain benefits under the Double Tax Avoidance Agreement (“DTAA”) between India and Mauritius. In order to be eligible to claim benefits under the DTAA, each Subsidiary must have commercial substance, on an annual basis, to satisfy certain tests and conditions, including the establishment and maintenance of valid tax residence in Mauritius and related requirements. Each Fund has obtained a current tax residence certificate issued by the Mauritian Revenue Authorities and the same covers the period of any exists.

 

Based upon current interpretation and practice of the current tax laws in India and Mauritius and the DTAA, each Subsidiary is subject to tax in Mauritius on its net income at the rate of 15%. However, each Subsidiary is entitled to a tax credit equivalent to the higher of the actual foreign tax incurred or 80% of the Mauritius tax on its foreign source income, thus reducing its maximum effective tax rate to 3% up to June 30, 2021. After June 30, 2021, under the new tax regime and subject to meeting the necessary substance requirements as required under the Financial Services Act 2007 (as amended by the Finance Act 2018) and such guidelines issued by the FSC, each Subsidiary is entitled to either (a) a foreign tax credit equivalent to the actual foreign tax suffered on its foreign income against each Subsidiary’s tax liability computed at 15% on such income, or (b) a partial exemption of 80% of some of the income derived, including interest income or foreign source dividends. Taxes on income, if any, are paid by each Subsidiary and are disclosed in its consolidated statement of operations. Any dividends paid by a Subsidiary to its Fund are not subject to tax in Mauritius. Each Subsidiary is currently exempt from tax in Mauritius on any gains from the sale of securities.

 

The DTAA provides that capital gains will be taxable in India with respect to the sale of shares acquired on or after April 1, 2017. Capital gains arising from shares acquired before April 1, 2017, regardless of when they are sold, will continue to be exempt from taxation under the amended DTAA, assuming requirements for eligibility under the DTAA are satisfied.

 

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Notes to Consolidated Financial Statements (unaudited) (continued)

 

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

 

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

 

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

 

3 INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

 

Investment Valuation Policies Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date should the reporting period end on a day that the Fund’s listing exchange is not open. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. A fund determines the fair value of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Directors of the Company (the “Board”). The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.

 

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

Equity investments traded on a recognized securities exchange are valued at that day’s last traded price or official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price.
Investments in open-end U.S. mutual funds (including money market funds) are valued at that day’s published net asset value (“NAV”).
Futures contract notional values are determined based on that day’s last reported settlement price on the exchange where the contract is traded.

 

If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of an investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with policies approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee include market approach, income approach and the cost approach. Valuation techniques used under these approaches take into consideration inputs that include but are not limited to (i) attributes specific to the investment; (ii) the principal market for the investment; (iii) the customary participants in the principal market for the investment; (iv) data assumptions by market participants for the investment, if reasonably available; (v) quoted prices for similar investments in active markets; and (vi) other inputs, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or default rates.

 

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.

 

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

 

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

Level 1– Unadjusted price quotations in active markets for identical assets or liabilities;

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

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

 

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgement exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The fair value hierarchy for each Fund’s investments is included in its consolidated schedule of investments. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

 

4 SECURITIES AND OTHER INVESTMENTS

 

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

 

N o t e s  t o  C o n s o l i d a t e d  F i n a n c i a l  S t a t e m e n t s 73

 

 

 

 

Notes to Consolidated Financial Statements (unaudited) (continued)

 

securities but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.

 

As of February 29, 2020, any securities on loan were collateralized by cash and/or U.S. government obligations. Cash collateral received was invested in money market funds managed by BlackRock Fund Advisors (“BFA”), the Funds' investment adviser, or its affiliates and is disclosed in the consolidated schedules of investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan for each Fund, if any, are also disclosed in its consolidated schedule of investments. The market value of any securities on loan as of February 29, 2020 and the value of the related cash collateral are disclosed in the consolidated statements of assets and liabilities.

 

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

 

The following table is a summary of the securities lending agreements by counterparty which are subject to offset under an MSLA as of February 29, 2020:

 

iShares ETF and Counterparty

  Market Value of
Securities on Loan
   

Cash Collateral

Received

(a)   

Non-Cash Collateral

Received

   

Net Amount

 
Core MSCI Emerging Markets                              
Barclays Bank PLC   $ 1,198,109     $ 1,198,109     $     $  
Barclays Capital Inc.     21,843,911       21,843,911              
BNP Paribas Prime Brokerage International Ltd.     12,542,475       12,542,475              
BNP Paribas Securities Corp.     5,042,250       5,042,250              
BofA Securities, Inc.     46,239,418       46,239,418              
Citadel Clearing LLC     579,203       579,203              
Citigroup Global Markets Inc.     199,855,997       199,855,997              
Citigroup Global Markets Ltd.     45,536,315       45,536,315              
Credit Suisse Securities (Europe) Ltd.     51,699,537       51,699,537              
Credit Suisse Securities (USA) LLC     95,764,546       95,764,546              
Deutsche Bank AG     5,019,105       5,019,105              
Deutsche Bank Securities Inc.     4,844,044       4,844,044              
Goldman Sachs & Co.     147,804,841       147,804,841              
Goldman Sachs International     12,636,137       12,636,137              
HSBC Bank PLC     64,571,893       64,571,893              
Jefferies LLC     2,173,929       2,173,929              
JPMorgan Securities LLC     185,160,889       185,160,889              
JPMorgan Securities PLC     120,193,225       120,193,225              
Macquarie Bank Limited     53,686,747       53,686,747              
Mizuho Securities USA Inc.     70,504       70,504              
Morgan Stanley& Co. International PLC     49,813,479       49,813,479              
Morgan Stanley& Co. LLC     322,353,915       322,353,915              
Morgan Stanley& Co. LLC (U.S. Equity Securities Lending)     15,627,666       15,627,666              
Nomura Securities International Inc.     4,656,195       4,656,195              
RBC Capital Markets LLC     25,017       25,017              
SG Americas Securities LLC     1,716,784       11,716,784              
State Street Bank & Trust Company     635,200       635,200              
TD Prime Services LLC     499,763       499,763              
UBS AG     10,017,755       10,017,755              
UBS Europe SE     7,442,571       7,442,571              
UBS Securities LLC     16,526,858       16,526,858              
Wells Fargo Bank, National Association     8,207,118       8,207,118              
Wells Fargo Securities LLC     2,859,227       2,859,227              
    $ 1,526,844,623     $ 1,526,844,623     $     $  

 

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Notes to Consolidated Financial Statements (unaudited) (continued)

 

    Market Value of                
iShares ETF and Counterparty   Securities on Loan     Cash Collateral
Received(a)
    Collateral
Received
    Net Amount  
MSCI BRIC                                
Citigroup Global Markets Inc.   $ 1,403,148     $ 1,403,148     $     $  
Credit Suisse Securities (USA) LLC     63,975       63,975              
JPMorgan Securities LLC     740,405       740,405              
Macquarie Bank Limited     64,507       64,507              
Morgan Stanley & Co. LLC     1,855,663       1,855,663              
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending)     394,813       394,813              
Scotia Capital (USA) Inc.     33,637       32,272             (1,365 )(b)
State Street Bank & Trust Company     1,981       1,901             (80 )(b)
UBS AG     559,669       559,669              
    $ 5,117,798     $ 5,116,353     $     $ (1,445 )
MSCI Emerging Markets Asia                                
Barclays Capital Inc.   $ 215,148     $ 215,148     $     $  
BofA Securities, Inc.     225,110       225,110              
Citigroup Global Markets Inc.     490,823       490,823              
Credit Suisse Securities (USA) LLC     1,161,014       1,161,014              
Jefferies LLC     52,339       52,339              
JPMorgan Securities LLC     935,134       935,134              
Macquarie Bank Limited     167,057       167,057              
Morgan Stanley & Co. International PLC     89,773       89,773              
Morgan Stanley & Co. LLC     3,239,252       3,239,252              
Nomura Securities International Inc.     29,124       29,124              
TD Prime Services LLC     22,431       22,431              
UBS AG     154,849       154,849              
Wells Fargo Securities LLC     170,016       170,016              
    $ 6,952,070     $ 6,952,070     $     $  
MSCI Emerging Markets Small-Cap                                
Barclays Bank PLC   $ 83,336     $ 83,336     $     $  
Barclays Capital Inc.     92,930       92,930              
BNP Paribas Prime Brokerage International Ltd.     103,946       102,765             (1,181 )(b)
BofA Securities, Inc.     499,999       499,999              
Citigroup Global Markets Inc.     87,654       87,654              
Credit Suisse Securities (USA) LLC     701,924       701,924              
Deutsche Bank Securities Inc.     18,327       18,327              
Goldman Sachs & Co.     1,143,992       1,143,992              
HSBC Bank PLC     1,567,999       1,567,999              
JPMorgan Securities LLC     1,649,600       1,649,600              
JPMorgan Securities PLC     35,359       35,359              
Macquarie Bank Limited     851,626       851,626              
Morgan Stanley & Co. International PLC     365,649       365,649              
Morgan Stanley & Co. LLC     1,291,365       1,291,365              
SG Americas Securities LLC     72,057       72,057              
UBS AG     359,851       359,851              
UBS Securities LLC     354,013       354,013              
    $ 9,279,627     $ 9,278,446     $     $ (1,181 )

 

(a) Collateral received in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by each Fund is disclosed in the Fund's statement of assets and liabilities.

(b) 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 a counterparty.

 

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

 

N o t e s  t o  C o n s o l i d a t e d  F i n a n c i a l  S t a t e m e n t s 75

 

 

 

 

Notes to Consolidated Financial Statements (unaudited) (continued)

 

5 DERIVATIVE FINANCIAL INSTRUMENTS

 

Futures Contracts Each Fund’s use of futures contracts is generally limited to cash equitization. This involves the use of available cash to invest in index futures contracts in order to gain exposure to the equity markets represented in or by the Fund’s underlying index and is intended to allow the Fund to better track its underlying index. Futures contracts are standardized, exchange-traded agreements to buy or sell a specific quantity of an underlying instrument at a set price on a future date. Depending on the terms of a contract, a futures contract is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date.

 

Upon entering into a futures contract, a fund is required to pledge to the executing broker which holds segregated from its own assets, an amount of cash, U.S. government securities or other high-quality debt and equity securities equal to the minimum initial margin requirements of the exchange on which the contract is traded. Securities deposited as initial margin, if any, are designated in the consolidated schedule of investments and cash deposited, if any, is shown as cash pledged for futures contracts n the consolidated statement of assets and liabilities.

 

Pursuant to the contract, a fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation or depreciation and, if any, shown as variation margin receivable or payable on futures contracts in the consolidated statement of assets and liabilities. When the contract is closed, a realized gain or loss is recorded in the consolidated statement of operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. Losses may arise if the notional value of a futures contract decreases due to an unfavorable change in the market rates or values of the underlying instrument during the term of the contract or if the counterparty does not perform under the contract. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and the assets underlying such contracts.

 

6 INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

 

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

 

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

 

iShares ETF   Investment Advisory Fee  
Core MSCI Emerging Markets     0.14 %
MSCI Emerging Markets Asia     0.49  

 

For its investment advisory services to each of the iShares MSCI BRIC and iShares MSCI Emerging Markets Small-Cap ETFs, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Funds, based on each Fund’s allocable portion of the aggregate of the average daily net assets of the Fund and certain other iShares funds, as follows:

 

Aggregate Average Daily Net Assets   Investment Advisory Fee  
First $14 billion     0.75 %
Over $14 billion, up to and including $28 billion     0.68  
Over $28 billion, up to and including $42 billion     0.61  
Over $42 billion, up to and including $56 billion     0.54  
Over $56 billion, up to and including $70 billion     0.47  
Over $70 billion, up to and including $84 billion     0.41  
Over $84 billion     0.35  

 

Each Subsidiary has entered into a separate contract with BFA under which BFA provides investment advisory services to the Subsidiary but does not receive separate compensation from the Subsidiary for providing it with such services. Each Subsidiary has also entered into separate arrangements that provide for the provision of other services to the Subsidiary (including administrative, custody, transfer agency and other services), and BFA pays the costs and expenses related to the provision of those services.

 

Expense Waivers: The total of the investment advisory fee and any fund other expenses are a fund’s total annual operating expenses. For the iShares Core MSCI Emerging Markets ETF, BFA has contractually agreed to waive a portion of its investment advisory fee through December 31, 2022 in order to limit the Fund’s total annual operating expenses after fee waiver to 0.14% of average daily net assets.

 

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

 

Securities Lending: The U.S. Securities and Exchange Commission (the “SEC”) has issued an exemptive order which permits BlackRock Institutional Trust Company,

 

N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan in a money market fund managed by BFA, or its affiliates, however, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees each Fund bears to an annual rate of 0.04% (the “collateral investment fees”). Securities lending income is equal to the total of income earned from the reinvestment of cash collateral (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. Each Fund retains a portion of securities lending income and remits the remaining portion to BTC as compensation for its services as securities lending agent.

 

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Notes to Consolidated Financial Statements (unaudited) (continued)

 

Pursuant to the current securities lending agreement, each Fund retains 82% of securities lending income (which excludes collateral investment fees) and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

 

In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across all 1940 Act iShares exchange-traded funds (the “iShares ETF Complex”) in that calendar year exceeds a specified threshold, each Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year 85% of securities lending income (which excludes collateral investment fees), and the amount reta ned can never be less than 70% of the total of securities lending income plus the collateral investment fees.

 

The share of securities lending income earned by each Fund is shown as securities lending income – affiliated – net in its consolidated statement of operations. For the six months ended February 29, 2020, the Funds paid BTC the following amounts for securities lending agent services:

 

    Fees Paid  
iShares ETF   to BTC  
Core MSCI Emerging Markets   $ 6,447,770  
MSCI BRIC     7,636  
MSCI Emerging Markets Asia     21,796  
MSCI Emerging Markets Small-Cap     76,592  

 

Officers and Directors Certain officers and/or directors of the Company are officers and/or directors of BlackRock or its affiliates.

 

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

 

For the six months ended February 29, 2020, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:

 

iShares ETF

 

Purchases

   

Sales

    Net Realized Gain (Loss)  
Core MSCI Emerging Markets   $ 48,747,213     $ 307,551,637     $ (33,055,274 )
MSCI Emerging Markets Asia     33,489       535,045       (43,202 )
MSCI Emerging Markets Small-Cap     889,821       699,777       320,611  

 

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

 

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

 

7 PURCHASES AND SALES

 

For the six months ended February 29, 2020, purchases and sales of investments, excluding in-kind transactions and short-term investments, were as follows:

 

iShares ETF   Purchases     Sales  
Core MSCI Emerging Markets   $ 4,486,646,874     $ 2,886,960,541  
MSCI BRIC     86,419,238       13,977,135  
MSCI Emerging Markets Asia     102,304,202       58,490,818  
MSCI Emerging Markets Small-Cap     56,954,247       84,830,022  

 

For the six months ended February 29, 2020, in-kind transactions were as follows:

 

iShares ETF

  In-kind Purchases     In-kind Sales  
Core MSCI Emerging Markets   $ 606,899,088     $ 526,219,979  
MSCI BRIC     25,801,809        
MSCI Emerging Markets Asia           22,743,054  
MSCI Emerging Markets Small-Cap     9,038,447       23,565,880  

 

8 INCOME TAX INFORMATION

 

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

 

Management has analyzed tax laws and regulations and their application to the Funds as of February 29, 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' consolidated financial statements.

 

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Notes to Consolidated Financial Statements (unaudited) (continued)

 

As of August 31, 2019, the Funds had non-expiring capital loss carryforwards available to offset future realized capital gains as follows:

 

iShares ETF   Non-Expiring  
Core MSCI Emerging Markets   $ 2,960,244,052  
MSCI BRIC     217,988,152  
MSCI Emerging Markets Asia     45,597,073  
MSCI Emerging Markets Small-Cap     26,517,277  

 

A fund may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” Such fund may elect to mark-to-market annually the shares of each passive foreign investment company and would be required to distribute to shareholders any such marked-to-market gains.

 

As of February 29, 2020, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:

 

iShares ETF

 

Tax Cost

   

Gross Unrealized Appreciation 

   

Gross Unrealized Depreciation

    Net Unrealized Appreciation (Depreciation)  
Core MSCI Emerging Markets   $ 55,309,651,896     $ 10,066,209,133     $ (8,545,978,718 )   $ 1,520,230,415  
MSCI BRIC     270,641,737       24,115,572       (29,932,478 )     (5,816,906 )
MSCI Emerging Markets Asia     472,996,599       81,583,123       (58,867,947 )     22,715,176  
MSCI Emerging Markets Small-Cap     222,728,536       28,268,700       (48,697,248 )     (20,428,548 )

 

9 LINE OF CREDIT

 

The Funds, along with certain other iShares funds, are parties to a $300 million credit agreement with State Street Bank and Trust Company, which expires on October 21, 2020. The line of credit may be used for temporary or emergency purposes, including redemptions, settlement of trades and rebalancing of portfolio holdings. The credit agreement has the following terms: a commitment fee of 0.20% per annum on the unused portion of the credit agreement and interest at a rate equal to the higher of (a) the one-month LIBOR (not less than zero) plus 1.00% per annum or (b) the U.S. Federal Funds rate (not less than zero) plus 1.00% per annum on amounts borrowed. The commitment fee is allocated to each fund participating in the credit agreement based on each fund’s pro-rata share of the aggregate average daily value of assets invested in local securities of certain foreign markets.

 

For the six months ended February 29, 2020, the maximum amount borrowed, the average daily borrowing and the weighted average interest rate, if any, under the credit agreement were as follows:

 

iShares ETF

  Maximum Amount Borrowed    

Average Borrowing

    Weighted Average Interest Rates  
Core MSCI Emerging Markets   $ 75,550,000     $ 3,077,363       2.70 %
MSCI BRIC     1,600,000       69,813       2.63  
MSCI Emerging Markets Asia     2,300,000       99,176       2.80  
MSCI Emerging Markets Small-Cap     2,366,000       93,885       2.69  

 

10 PRINCIPAL RISKS

 

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

 

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

 

Market Risk Market risk arises mainly from uncertainty about future values of financial instruments influenced by price, currency and interest rate movements. It represents the potential loss a fund may suffer through holding market positions in the face of market movements. A fund is exposed to market risk by its investment in equity, fixed income and/or financial derivative instruments or by its investment in underlying funds. The fair value of securities held by a fund may decline due to general market conditions, economic trends or events that are not specifically related to the issuers of the securities including local, regional or global political, social or economic instability or to factors that affect a particular industry or group of industries. 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. The extent of a fund’s exposure to market risk is the market value of the investments held as shown in the fund’s consolidated schedule of investments.

 

Investing in the securities of non-U.S. issuers involves certain considerations and risks not typically associated with securities of U.S. issuers. Such risks include, but are not limited to: differences in accounting, auditing and financial reporting standards; more substantial governmental involvement in the economy; higher inflation rates, greater social, economic and political uncertainties; possible nationalization or expropriation of assets; less availability of public information about issuers; imposition of withholding or other taxes; higher transaction and custody costs and delays in settlement procedures; and lower level of regulation of the securities markets and issuers.

 

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Notes to Consolidated Financial Statements (unaudited) (continued)

 

Non-U.S. securities may be less liquid, more difficult to value, and have greater price volatility due to exchange rate fluctuations. These and other risks are heightened for investments in issuers from countries with less developed capital markets.

 

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 impact of the pandemic may be short term or may last for an extended period of time.

 

Credit Risk Credit risk is the risk that an issuer or guarantor of debt instruments or the counterparty to a financial transaction, including derivatives contracts, repurchase agreements or loans of portfolio securities, is unable or unwilling to make timely interest and/or principal payments or to otherwise honor its obligations. BFA and its affiliates manage counterparty credit risk by entering into transactions only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose a fund to issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of a fund’s exposure to credit and counterparty risks with respect to those financial assets is approximated by their value recorded in its consolidated statement of assets and liabilities.

 

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

 

When a fund concentrates its investments in issuers located in a single country or a limited number of countries, it assumes the risk that economic, regulatory, political and social conditions in that country or those countries may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio.

 

Investments in Chinese securities, including certain Hong Kong-listed securities, involves risks specific to China. China may be subject to considerable degrees of economic, political and social instability and demonstrates significantly higher volatility from time to time in comparison to developed markets. Chinese markets generally continue to experience inefficiency, volatility and pricing anomalies resulting from governmental influence, a lack of publicly available information and/or political and social instability. Internal social unrest or confrontations with other neighboring countries may disrupt economic development in China and result in a greater risk of currency fluctuations, currency non-convertibility, interest rate fluctuations and higher rates of inflation. Incidents involving China’s or the region’s security may cause uncertainty in Chinese markets and may adversely affect the Chinese economy and a fund’s investments. Reduction in spending on Chinese products and services, institution of tariffs or other trade barriers, or a downturn in any of the economies of China’s key trading partners may have an adverse impact on the Chinese economy.

 

11 CAPITAL SHARE TRANSACTIONS

 

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

 

Transactions in capital shares were as follows:

 

    Six Months Ended     Year Ended  
    02/29/20     08/31/19  
iShares ETF     Shares       Amount       Shares       Amount  
Core MSCI Emerging Markets                                
Shares sold     68,400,000     $ 3,600,952,026       211,800,000     $ 10,461,822,914  
Shares redeemed     (23,400,000 )     (1,174,166,424 )     (53,400,000 )     (2,624,664,277 )
Net increase     45,000,000     $ 2,426,785,602       158,400,000     $ 7,837,158,637  
                                 
MSCI BRIC                                
Shares sold     2,200,000     $ 99,896,319       4,950,000     $ 208,411,154  
Shares redeemed                 (5,950,000 )     (254,596,919 )
Net increase(decrease)     2,200,000     $ 99,896,319       (1,000,000 )   $ (46,185,765 )
                                 
MSCI Emerging Markets Asia                                
Shares sold     1,050,000     $ 76,674,736       1,850,000     $ 118,169,909  
Shares redeemed     (750,000 )     (50,244,470 )     (1,000,000 )     (62,878,124 )
Net increase     300,000     $ 26,430,266       850,000     $ 55,291,785  
                                 
MSCI Emerging Markets Small-Cap                                
Shares sold     1,050,000     $ 46,884,648       1,100,000     $ 47,348,348  
Shares redeemed     (2,050,000 )     (87,194,194 )     (850,000 )     (37,239,650 )
Net increase(decrease)     (1,000,000 )   $ (40,309,546 )     250,000     $ 10,108,698  

  

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

 

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Notes to Consolidated Financial Statements (unaudited) (continued)

 

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

 

12 FOREIGN WITHHOLDING TAX CLAIMS

 

The iShares Core MSCI Emerging Markets ETF has filed claims to recover taxes withheld by Poland on dividend income on the basis that Poland had purportedly violated certain provisions in the Treaty on the Functioning of the European Union. The Fund has received payments on certain of the claims resulting from a favorable court ruling that the imposition of a withholding tax by a European Union member state on dividends paid to a nonresident company, including the Fund, while exempting domestic funds from such taxes results in discriminatory tax withholding contrary to the free movement of capital. The Fund continues to evaluate developments in Poland for potential impacts to the receivables and payables recorded. Polish withholding tax claims received are disclosed in the statement of operations. Professiona fees associated with the filing of tax claims in Poland that result in the recovery of foreign withholding taxes have been approved by the Board as appropriate expenses of the Fund.

 

The Internal Revenue Service ("IRS") has issued guidance to address U.S. income tax liabilities attributable to fund shareholders resulting from the recovery of foreign taxes withheld in prior years. These withheld foreign taxes were passed through to shareholders in the form of foreign tax credits in the year the taxes were withheld. Assuming there are sufficient foreign taxes paid which the Fund is able to pass through to its shareholders as a foreign tax credit in the current year, the Fund wi l be able to offset the prior years’ withholding taxes recovered against the foreign taxes paid in the current year. Accordingly, no federal income tax liability is recorded by the Fund.

 

13 LEGAL PROCEEDINGS

 

On June 16, 2016, investors in certain iShares funds (iShares Core S&P Small-Cap ETF, iShares Russell 1000 Growth ETF, iShares Core S&P 500 ETF, iShares Russell Mid-Cap Growth ETF, iShares Russell Mid-Cap ETF, iShares Russell Mid-Cap Value ETF, iShares Select Dividend ETF, iShares Morningstar Mid-Cap ETF, iShares Morningstar Large-Cap ETF, iShares U.S. Aerospace & Defense ETF and iShares Preferred and Income Securities ETF) filed a class action lawsuit against iShares Trust, BlackRock, Inc. and certain of its advisory affiliates, and certain directors/trustees and officers of the Funds (collectively, “Defendants”) in California State Court. The lawsuit alleges the Defendants violated federal securities laws by failing to adequately disclose in the prospectuses issued by the funds noted above the risks of using stop-loss orders in the event of a ‘flash crash’, such as the one that occurred on May 6, 2010. On September 18, 2017, the court issued a Statement of Decision holding that the Plaintiffs lack standing to assert their claims. On October 11, 2017, the court entered final judgment dismissing all of the Plaintiffs’ claims with prejudice. In an opinion dated January 23, 2020, the California Court of Appeal affirmed the dismissal of Plaintiffs’ claims. On March 3, 2020, plaintiffs filed a petition for review by the California Supreme Court.

 

14 SUBSEQUENT EVENTS

 

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

 

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Statement Regarding Liquidity Risk Management Program

 

The Securities and Exchange Commission adopted Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”) to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders.

 

The Board of Directors (the “Board”) of iShares Core MSCI Emerging Markets ETF, iShares MSCI BRIC ETF, iShares MSCI Emerging Markets Asia ETF and iShares MSCI Emerging Markets Small-Cap ETF met on December 3, 2019 (the “Meeting”) to review the liquidity risk management program (the “Program”) applicable to the iShares Funds (each, a “Fund”) pursuant to the Liquidity Rule. The Board has appointed BlackRock Fund Advisors (“BlackRock”), the investment adviser to the Funds, as the program administrator for each Fund’s Program, as applicable. BlackRock has delegated oversight of the Program to the 40 Act Liquidity Risk Management Committee (the “Committee”). At the Meeting, the Committee, on behalf of BlackRock, provided the Board with a report that addressed the operation of the Program and assessed its adequacy and effectiveness of implementation, including the operation of each Fund’s Highly Liquid Investment Minimum (“HLIM”) where applicable, and any material changes to the Program (the “Report”). The Report covered the period from December 1, 2018 through September 30, 2019 (the “Program Reporting Period”).

 

The Report described the Program’s liquidity classification methodology for categorizing a Fund’s investments (including derivative transactions) into one of four liquidity buckets. It also described BlackRock’s methodology in establishing a Fund’s HLIM and noted that the Committee reviews and ratifies the HLIM assigned to each Fund no less frequently than annually.

 

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

 

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

 

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

 

c) Holdings of cash and cash equivalents, as well as borrowing arrangements. The Committee considered that ETFs generally do not hold more than de minimus amounts of cash. Funds may borrow for temporary or emergency purposes, including to meet payments due from redemptions or to facilitate the settlement of securities or other transactions.

 

d) The relationship between an ETF’s portfolio liquidity and the way in which, and the prices and spreads at which, ETF shares trade, including the efficiency of the arbitrage function and the level of active participation by market participants, including authorized participants. The Committee monitored the prevailing bid/ask spread and the ETF price premium (or discount) to NAV for all ETFs and reviewed any persistent deviations from long-term averages.

 

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

 

There were no material changes to the Program during the Program Reporting Period. The Report provided to the Board stated that the Committee concluded that based on the operation of the functions, as described in the Report, the Program is operating as intended and is effective in implementing the requirements of the Liquidity Rule.

 

S t a t e m e n t  R e g a r d i n g  L i q u i d i t y  R i s k  M a n a g e m e n t  P r o g r a m 81

 

 

 

 

Supplemental Information (unaudited)

 

Section 19(a) Notices

 

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

 

    Total Cumulative Distributions     % Breakdown of the Total Cumulative  
    for the Fiscal Year-to-Date     Distributions for the Fiscal Year-to-Date  
iShares ETF     Net Investment Income       Net Realized Capital Gains       Return of Capital       Total Per Share       Net Investment Income       Net Realized Capital Gains       Return of Capital       Total Per Share  
Core MSCI Emerging Markets(a)   $ 1.180459     $     $ 0.020720     $ 1.201179       98 %     %     2 %     100 %
MSCI BRIC(a)     0.407132             0.104047       0.511179       80             20       100  
MSCI Emerging Markets Asia(a)     0.819154             0.187853       1.007007       81             19       100  
MSCI Emerging Markets Small-Cap(a)     0.702612             0.148880       0.851492       83             17       100  

 

(a) The Fund estimates that it has distributed more than its net investment income and net realized capital gains; therefore, a portion of the distribution may be a return of capital. Areturn of capital may occur, for example, when some or all of the shareholder's investment in the Fund is returned to the shareholder. A return of capital does not necessarily reflect the Fund's investment performance and should not be confused with "yield" or "income". When distributions exceed total return performance, the difference will incrementally reduce the Fund's net asset value per share.

 

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General Information

 

Electronic Delivery

 

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

 

To enroll in electronic delivery:

 

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

 

Householding

 

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

 

Availability of Quarterly Schedule of Investments

 

The iShares Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT, and for reporting periods ended prior to March 31, 2019, filed such information on Form N-Q. The iShares Funds' Forms N-Q are available on the SEC’s website at sec.gov. The iShares Funds also disclose their complete schedule of portfolio holdings on a daily basis on the iShares website at iShares.com.

 

Availability of Proxy Voting Policies and Proxy Voting Records

 

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

 

G e n e r a l  I n f o r m a t i o n 83

 

 

 

 

Glossary of Terms Used in this Report

 

Portfolio Abbreviations - Equity

 

ADR American Depositary Receipt

 

CPO Certificates of Participation (Ordinary)

 

GDR Global Depositary Receipt

 

NVDR Non-Voting Depositary Receipt

 

NVS Non-Voting Shares

 

84 2 0 2 0  I  S h a r e s  S e m i  -  A n n u a l  R e p o r t  t o  S h a r e h o l d e r s

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Want to know more? 

iShares.com | 1-800-474-2737

 

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

 

Investing involves risk, including possible loss of principal.

 

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

 

The iShares Funds are not sponsored, endorsed, issued, sold or promoted by MSCI Inc., nor does this company make any representation regarding the advisability of investing in the iShares Funds. BlackRock is not affiliated with the company listed above.

 

©2020 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.

 

iS-SAR-810-0220

 

(GRAPHIC)  

 

 

 

FEBRUARY 29, 2020

 

2020 Semi-Annual Report
(Unaudited)

 

iShares, Inc.

 

iShares MSCI Frontier 100 ETF | FM | NYSE Arca
iShares MSCI World ETF | URTH | NYSE Arca

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

You may elect to receive all future reports in paper free of charge. If you hold accounts through a financial intermediary, you can follow the instructions included with this disclosure, if applicable, or contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. Please note that not all financial intermediaries may offer this service. Your election to receive reports in paper will apply to all funds held with your financial intermediary.

 

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive electronic delivery of shareholder reports and other communications by contacting your financial intermediary. Please note that not all financial intermediaries may offer this service. 

 

 

 

 

 

 

 

 

Fund Summary as of February 29, 2020 iShares® MSCI Frontier 100 ETF

 

Investment Objective 

 

The iShares MSCI Frontier 100 ETF (the “Fund”) seeks to track the investment results of an index composed of frontier market equities, as represented by the MSCI Frontier Markets 100 Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. 

 

Performance

 

          Average Annual Total Returns     Cumulative Total Returns  
    6 Months     1 Year     5 Years     Since
Inception
    1 Year     5 Years     Since
Inception
 
Fund NAV   (1.84 )%   3.76 %   1.39 %   5.33 %   3.76 %   7.14 %   47.33 %
Fund Market   (3.60 )   0.04     0.65     4.96     0.04     3.31     43.55  
Index   (1.23 )   4.95     2.88     6.62     4.95     15.24     61.42  
 
The inception date of the Fund was 9/12/12. The first day of secondary market trading was 9/13/12. 
 
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 5 for more information.

 

Expense Example

 

  Actual     Hypothetical 5% Return        
Beginning
Account Value
(09/01/19)
    Ending
Account Value
(02/29/20)
    Expenses
Paid During
the Period
(a)   Beginning
Account Value
(09/01/19)
    Ending
Account Value
(02/29/20)
    Expenses
Paid During
the Period
(a)   Annualized
Expense
Ratio
 
  $ 1,000.00     $ 981.60     $ 3.89     $ 1,000.00     $ 1,020.90     $ 3.97     0.79 %

 

(a) Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 5 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR
Sector   Percent of
Total Investments
(a)
Financials     53.5 %
Communication Services     15.2  
Consumer Staples     7.1  
Real Estate     6.7  
Industrials     5.2  
Energy     4.5  
Materials     3.6  
Health Care     2.4  
Utilities     1.0  
Consumer Discretionary     0.8  
TEN LARGEST GEOGRAPHIC ALLOCATION
Country/Geographic Region   Percent of
Total Investments
(a) 
Kuwait     28.7 %
Morocco     11.2  
Vietnam     11.2  
Kenya     9.4  
Bahrain     9.2  
Nigeria     8.0  
Romania     7.7  
Bangladesh     5.3  
Kazakhstan     3.2  
Oman     2.7  

 

(a) Excludes money market funds.

 

F u n d   S u m m a r y 3

 

 

 

 

Fund Summary as of February 29, 2020 iShares® MSCI World ETF

 

Investment Objective

 

The iShares MSCI World ETF (the “Fund”) seeks to track the investment results of an index composed of developed market equities, as represented by the MSCI World Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

 

Performance

 

          Average Annual Total Returns     Cumulative Total Returns  
    6 Months     1 Year     5 Years     Since
Inception
    1 Year     5 Years     Since
Inception
 
Fund NAV   0.98 %   4.90 %   6.18 %   9.67 %   4.90 %   34.94 %   111.86 %
Fund Market   1.56     5.62     6.23     9.73     5.62     35.25     112.95  
Index   0.88     4.63     5.88     9.45     4.63     33.09     108.52  
                                           
The inception date of the Fund was 1/10/12. The first day of secondary market trading was 1/12/12. 
 
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 5 for more information.

 

Expense Example

 

  Actual     Hypothetical 5% Return        
Beginning
Account Value
(09/01/19)
    Ending
Account Value
(02/29/20)
    Expenses
Paid During
the Period
(a)   Beginning
Account Value
(09/01/19)
    Ending
Account Value
(02/29/20)
    Expenses
Paid During
the Period
(a)   Annualized
Expense
Ratio
 
  $ 1,000.00     $ 1,009.80     $ 1.20     $ 1,000.00     $ 1,023.70     $ 1.21     0.24 %

 

(a) Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 5 for more information.

  

Portfolio Information

 

ALLOCATION BY SECTOR
Sector   Percent of
Total Investments
(a)
Information Technology     18.4 %
Financials     15.1  
Health Care     13.2  
Industrials     10.7  
Consumer Discretionary     10.4  
Communication Services     8.6  
Consumer Staples     8.3  
Energy     4.2  
Materials     4.1  
Utilities     3.7  
Real Estate     3.3  
TEN LARGEST GEOGRAPHIC ALLOCATION
Country/Geographic Region   Percent of
Total Investments
(a)
United States     63.4 %
Japan     8.0  
United Kingdom     5.1  
France     3.7  
Canada     3.5  
Switzerland     3.2  
Germany     2.8  
Australia     2.4  
Netherlands     1.3  
Hong Kong     1.2  

 

(a) Excludes money market funds.

 

4 2 0 2 0   i  S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

 

About Fund Performance 

 

Past performance is no guarantee of future results. Financial markets have experienced extreme volatility and trading in many instruments has been disrupted. These circumstances may continue for an extended period of time, and may continue to affect adversely the value and liquidity of the fund’s investments. As a result, current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at iShares.com. Performance results assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. The investment return and principal value of shares will vary with changes in market conditions. Shares may be worth more or less than their original cost when they are redeemed or sold in the market. Performance for certain funds may reflect a waiver of a portion of investment advisory fees. Without such a waiver, performance would have been lower.

 

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

 

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

 

Shareholder Expenses 

 

As a shareholder of your Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares and (2) ongoing costs, including management fees and other fund expenses. The expense example, which is based on an investment of $1,000 invested at the beginning of the period (or from the commencement of operations if less than 6 months) and held through the end of the period, is intended to help you understand your ongoing costs (in dollars and cents) of investing in your Fund and to compare these costs with the ongoing costs of investing in other funds. 

 

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

 

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

 

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

 

A b o u t   F u n d   P e r f o r m a n c e / S h a r e h o l d e r   E x p e n s e s 5

 

 

 

 

Schedule of Investments (unaudited) iShares® MSCI Frontier 100 ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Common Stocks                
Bahrain — 9.2%                
Ahli United Bank BSC     31,696,521     $ 33,561,022  
Aluminium Bahrain BSC(a)     1,068,749       1,255,684  
Bahrain Telecommunications Co. BSC     3,175,732       3,360,608  
GFH Financial Group BSC     24,448,963       5,757,944  
Ithmaar Holding BSC(a)(b)     7,341,331       535,006  
              44,470,264  
Bangladesh — 5.2%                
Bangladesh Export Import Co. Ltd.     5,011,247       937,398  
Beximco Pharmaceuticals Ltd.     2,589,856       2,224,229  
BRAC Bank Ltd.(a)     5,246,700       2,290,030  
City Bank Ltd. (The)     4,881,298       1,010,716  
GrameenPhone Ltd.     847,360       2,735,478  
LafargeHolcim Bangladesh Ltd.     3,262,335       1,692,576  
National Bank Ltd.(a)     14,058,413       1,223,909  
Olympic Industries Ltd.     1,066,833       2,301,849  
Square Pharmaceuticals Ltd.     4,171,259       9,490,841  
Summit Power Ltd.     3,326,394       1,557,535  
              25,464,561  
Jordan — 1.8%                
Arab Bank PLC     606,150       4,744,898  
Jordan Islamic Bank     376,232       1,565,422  
Jordan Petroleum Refinery Co.     539,977       2,589,452  
              8,899,772  
Kazakhstan — 3.1%                
Halyk Savings Bank of Kazakhstan JSC, GDR(c)     735,473       10,296,622  
KCell JSC(c)(d)     262,890       1,572,082  
NAC Kazatomprom JSC, GDR     274,822       3,339,088  
              15,207,792  
Kenya — 9.4%                
East African Breweries Ltd.     3,051,671       5,857,580  
Equity Group Holdings PLC/Kenya     21,362,366       9,551,848  
KCB Group Ltd.     19,758,945       8,776,330  
Safaricom PLC     77,377,294       21,332,278  
              45,518,036  
Kuwait — 28.5%                
Agility Public Warehousing Co. KSC     2,892,584       7,515,047  
ALAFCO Aviation Lease & Finance Co. KSCP     528,397       450,692  
Alimtiaz Investment Group KSC     2,318,310       947,022  
Boubyan Bank KSCP     1,233,723       2,568,240  
Boubyan Petrochemicals Co. KSCP     1,161,956       2,396,060  
Burgan Bank SAK     2,998,295       2,861,118  
Gulf Bank KSCP     5,756,919       5,361,836  
Humansoft Holding Co. KSC     284,948       2,970,536  
Integrated Holding Co. KCSC     442,953       787,472  
Jazeera Airways Co. KSC     304,214       999,134  
Kuwait Finance House KSCP     10,152,385       26,343,117  
Kuwait International Bank KSCP     2,766,886       2,477,538  
Kuwait Projects Co. Holding KSCP     2,595,914       1,747,576  
Mabanee Co. SAK     1,764,541       4,895,736  
Mezzan Holding Co. KSCC     337,479       523,865  
Mobile Telecommunications Co. KSC     6,775,867       12,400,280  
National Bank of Kuwait SAKP     17,231,380       57,043,751  
National Industries Group Holding SAK     3,264,949       2,443,377  
National Real Estate Co. KPSC(a)     2,624,525       765,915  
Warba Bank KSCP(a)     3,735,508       3,283,829  
              138,782,141  
Security   Shares     Value  
Mauritius — 0.4%            
Lighthouse Capital Ltd.     4,171,107     $ 2,121,149  
Morocco — 11.1%                
Attijariwafa Bank     315,954       16,252,862  
Banque Centrale Populaire     157,070       4,423,472  
Cosumar     197,399       4,513,032  
Label Vie     6,845       2,262,046  
Maroc Telecom     1,441,827       22,265,516  
Societe d’Exploitation des Ports     147,312       3,237,795  
TOTAL Maroc SA     8,777       1,108,213  
              54,062,936  
Nigeria — 8.0%                
Access Bank PLC     127,318,423       2,854,439  
Afriland Properties PLC(a)     8,020       44  
Dangote Cement PLC     18,087,796       8,407,178  
FBN Holdings PLC     127,257,099       1,635,293  
Guaranty Trust Bank PLC     104,295,509       6,786,693  
MTN Nigeria Communications PLC     17,524,883       5,270,642  
Nestle Nigeria PLC     1,970,577       6,088,180  
United Bank for Africa PLC     121,380,699       2,223,515  
Zenith Bank PLC     110,689,197       5,598,770  
              38,864,754  
Oman — 2.7%                
Bank Muscat SAOG     5,504,884       6,433,444  
Bank Nizwa SAOG(a)     4,707,209       1,246,943  
Oman Telecommunications Co. SAOG     1,428,514       2,493,082  
Ooredoo     1,370,690       1,851,081  
Sohar International Bank SAOG     3,007,794       867,070  
              12,891,620  
Romania — 7.7%                
Banca Transilvania SA     28,848,870       15,396,416  
BRD-Groupe Societe Generale SA     1,549,009       5,101,479  
OMV Petrom SA     79,359,836       6,425,458  
Societatea Energetica Electrica SA     1,016,529       2,318,434  
Societatea Nationala de Gaze Naturale ROMGAZ SA     808,799       6,050,474  
Transgaz SA Medias     30,758       2,083,481  
              37,375,742  
Sri Lanka — 1.2%                
John Keells Holdings PLC     5,591,128       4,486,423  
Sampath Bank PLC     1,626,925       1,426,186  
              5,912,609  
Vietnam — 11.1%                
Bank for Foreign Trade of Vietnam JSC     889,665       3,154,270  
Bank for Investment and Development of Vietnam JSC     523,600       1,025,076  
Bao Viet Holdings     110,750       261,614  
FLC Faros Construction JSC(a)     372,092       116,234  
Ho Chi Minh City Development Joint Stock Commercial Bank(a)     421,810       504,553  
Hoa Phat Group JSC(a)     3,834,532       3,687,526  
Hoang Huy Investment Financial Services JSC     493,340       675,023  
Kinh Bac City Development Share Holding Corp.     702,300       423,054  
Masan Group Corp.(a)     1,179,950       2,487,739  
No Va Land Investment Group Corp.(a)     681,489       1,568,765  
PetroVietnam Drilling & Well Services JSC(a)     541,600       273,818  
PetroVietnam Gas JSC     172,410       562,311  
PetroVietnam Power Corp.(a)     1,287,370       545,613  
PetroVietnam Technical Services Corp.     624,898       400,627  
Saigon Beer Alcohol Beverage Corp.     188,010       1,310,513  
Saigon Thuong Tin Commercial JSB(a)     1,162,309       580,129  

 

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Schedule of Investments (unaudited) (continued) iShares® MSCI Frontier 100 ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Vietnam (continued)                
SSI Securities Corp.     769,940     $ 526,744  
Thanh Thanh Cong - Bien Hoa JSC     614,478       572,413  
Viet Capital Securities JSC     335,890       375,764  
Vietjet Aviation JSC     473,150       2,481,691  
Vietnam Dairy Products JSC     1,760,338       7,915,121  
Vietnam Electrical Equipment JSC(a)     686,821       543,759  
Vietnam National Petroleum Group     227,910       506,009  
Viglacera Corp. JSC(a)     636,940       498,787  
Vincom Retail JSC     2,681,747       3,288,576  
Vingroup JSC(a)     2,438,838       11,060,347  
Vinh Hoan Corp.     267,520       356,832  
Vinhomes JSC(e)     2,407,805       8,329,570  
              54,032,478  
                 
Total Common Stocks — 99.4%                
(Cost: $420,502,614)             483,603,854  
                 
Short-Term Investments                
                 
Money Market Funds — 0.0%                
BlackRock Cash Funds: Institutional, SL Agency Shares, 1.74%(f)(g)(h)     6,111       6,115  
                 
Total Short-Term Investments — 0.0%                
(Cost: $6,111)             6,115  
                 
Total Investments in Securities — 99.4%                
(Cost: $420,508,725)             483,609,969  
                 
Other Assets, Less Liabilities — 0.6%             2,970,168  
                 
Net Assets — 100.0%           $ 486,580,137  

 

 

(a) Non-income producing security.
(b) Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.
(c) This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933.
(d) All or a portion of this security is on loan.
(e) 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.
(f) Affiliate of the Fund.
(g) Annualized 7-day yield as of period-end.
(h) All or a portion of this security was purchased with cash collateral received from loaned securities.

 

Affiliates

 

Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

 

Affiliated Issuer   Shares
Held at
08/31/19
    Net Activity     Shares
Held at
02/29/20
    Value at
02/29/20
    Income     Net Realized
Gain (Loss)
(a)   Change in
Unrealized
Appreciation
(Depreciation)
 
BlackRock Cash Funds: Institutional, SL Agency Shares   5,535     576     6,111     $ 6,115     $ 185 (b)   $     $ 1  
BlackRock Cash Funds: Treasury, SL Agency Shares                       3,525              
                      $ 6,115     $ 3,710     $     $ 1  

 

(a) Includes realized capital gain distributions from an affiliated fund, if any.

(b) Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

 

Fair Value Measurements

 

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

 

S c h e d u l e   o f   I n v e s t m e n t s 7

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI Frontier 100 ETF
February 29, 2020  

 

Fair Value Measurements (continued)

 

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.

 

    Level 1     Level 2     Level 3     Total  
Investments                        
Assets                        
Common Stocks   $ 483,068,804     $ 44     $ 535,006     $ 483,603,854  
Money Market Funds     6,115                   6,115  
    $ 483,074,919     $ 44     $ 535,006     $ 483,609,969  

 

See notes to financial statements.

 

8 2 0 2 0   i  S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

 

Schedule of Investments (unaudited) iShares® MSCI World ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Common Stocks                
Australia — 2.3%                
AGL Energy Ltd.     20,290     $ 250,389  
APA Group     38,682       267,858  
Aristocrat Leisure Ltd.     16,320       348,394  
ASX Ltd.     6,221       297,375  
Aurizon Holdings Ltd.     55,265       172,103  
Australia & New Zealand Banking Group Ltd.     61,483       984,290  
Bendigo & Adelaide Bank Ltd.     17,289       102,442  
BHP Group Ltd.     66,802       1,447,172  
BHP Group PLC     50,844       921,153  
BlueScope Steel Ltd.     15,979       121,775  
Brambles Ltd.     38,676       298,239  
Cochlear Ltd.     2,179       291,645  
Coles Group Ltd.     28,060       257,083  
Commonwealth Bank of Australia     40,726       2,147,386  
Computershare Ltd.     17,669       174,527  
Crown Resorts Ltd.     11,911       78,025  
CSL Ltd.     10,747       2,144,149  
Dexus     33,413       261,963  
Fortescue Metals Group Ltd.     41,540       269,972  
Goodman Group     55,580       536,811  
GPT Group (The)     76,968       286,833  
Incitec Pivot Ltd.     63,373       111,547  
Insurance Australia Group Ltd.     58,653       241,269  
James Hardie Industries PLC     15,340       279,208  
Lendlease Group     28,841       327,834  
Macquarie Group Ltd.     7,383       641,816  
Medibank Pvt Ltd.     77,599       141,590  
Mirvac Group     156,127       306,015  
National Australia Bank Ltd.     63,581       1,028,945  
Newcrest Mining Ltd.     21,550       365,422  
Oil Search Ltd.     41,154       145,672  
Orica Ltd.     11,911       152,056  
Origin Energy Ltd.     53,085       238,901  
QBE Insurance Group Ltd.     33,079       289,843  
Ramsay Health Care Ltd.     4,223       185,176  
Rio Tinto Ltd.     8,649       486,656  
Santos Ltd.     50,207       221,094  
Scentre Group     165,699       369,647  
Sonic Healthcare Ltd.     14,072       261,300  
South32 Ltd.     130,558       186,874  
Stockland     70,888       215,271  
Suncorp Group Ltd.     33,318       243,603  
Sydney Airport     30,290       151,744  
Tabcorp Holdings Ltd.     57,305       140,031  
Telstra Corp. Ltd.     110,490       244,348  
Transurban Group     70,946       679,275  
Treasury Wine Estates Ltd.     24,423       173,686  
Vicinity Centres     103,300       143,862  
Wesfarmers Ltd.     24,032       629,857  
Westpac Banking Corp.     78,152       1,191,184  
Woodside Petroleum Ltd.     19,823       356,842  
Woolworths Group Ltd.     30,091       752,765  
              22,562,917  
Austria — 0.1%                
ANDRITZ AG     3,001       105,223  
Erste Group Bank AG     8,484       289,176  
OMV AG     5,164       214,700  
Security   Shares     Value  
Austria (continued)                
Raiffeisen Bank International AG     4,098     $ 84,064  
              693,163  
Belgium — 0.3%                
Ageas     6,428       295,708  
Anheuser-Busch InBev SA/NV     16,760       933,940  
Colruyt SA     1,726       79,287  
Galapagos NV(a)(b)     1,284       264,170  
Groupe Bruxelles Lambert SA     3,025       272,072  
KBC Group NV     4,716       310,921  
Proximus SADP     5,273       129,512  
Solvay SA     1,748       157,601  
UCB SA     3,593       329,789  
Umicore SA(b)     9,431       391,277  
              3,164,277  
Canada — 3.5%                
Agnico Eagle Mines Ltd.     7,545       357,985  
Alimentation Couche-Tard Inc., Class B     21,349       648,255  
Bank of Montreal     14,814       1,006,582  
Bank of Nova Scotia (The)     27,620       1,444,837  
Barrick Gold Corp.     44,944       857,129  
Bausch Health Companies Inc.(a)     7,972       176,621  
BCE Inc.     3,597       157,964  
BlackBerry Ltd.(a)     23,031       118,900  
Bombardier Inc., Class B(a)     58,127       41,570  
Brookfield Asset Management Inc., Class A     20,180       1,206,726  
Cameco Corp.     13,547       117,168  
Canadian Imperial Bank of Commerce     10,491       798,421  
Canadian National Railway Co.     18,024       1,527,881  
Canadian Natural Resources Ltd.     29,006       746,569  
Canadian Pacific Railway Ltd.     3,488       864,419  
Canadian Tire Corp. Ltd., Class A, NVS     2,266       222,810  
Canadian Utilities Ltd., Class A, NVS     9,690       286,726  
Canopy Growth Corp.(a)(b)     5,493       102,998  
CGI Inc.(a)     6,218       436,860  
CI Financial Corp.     12,520       207,897  
Constellation Software Inc.     586       596,949  
Dollarama Inc.     8,467       248,898  
Emera Inc.     5,614       236,546  
Enbridge Inc.     46,929       1,746,618  
Fairfax Financial Holdings Ltd.     692       298,075  
First Quantum Minerals Ltd.     18,334       135,489  
Fortis Inc.     12,355       499,962  
Franco-Nevada Corp.     4,748       509,693  
George Weston Ltd.     3,781       284,628  
Gildan Activewear Inc.     7,171       173,672  
Great-West Lifeco Inc.     6,218       146,238  
Husky Energy Inc.     12,584       59,904  
IGM Financial Inc.     4,977       132,698  
Imperial Oil Ltd.     7,854       171,959  
Intact Financial Corp.     3,278       355,285  
Inter Pipeline Ltd.     17,570       259,947  
Kirkland Lake Gold Ltd.     6,704       216,200  
Loblaw Companies Ltd.     3,991       197,714  
Magna International Inc.     7,525       342,461  
Manulife Financial Corp.     43,564       732,152  
Metro Inc.     9,324       363,138  
National Bank of Canada     9,648       501,465  
Nutrien Ltd.     13,697       553,553  
Onex Corp.     4,659       261,558  

 

S c h e d u l e   o f   I n v e s t m e n t s 9

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI World ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Canada (continued)                
Open Text Corp.     7,644     $ 320,030  
Pembina Pipeline Corp.     13,918       501,311  
Power Corp. of Canada     14,794       326,992  
PrairieSky Royalty Ltd.     12,157       112,754  
Restaurant Brands International Inc.     6,113       360,263  
RioCan REIT     21,211       396,141  
Rogers Communications Inc., Class B, NVS     9,534       436,873  
Royal Bank of Canada     32,870       2,444,283  
Saputo Inc.     8,694       241,970  
Shaw Communications Inc., Class B, NVS     13,625       235,787  
Shopify Inc., Class A(a)     2,572       1,194,116  
Sun Life Financial Inc.     12,964       560,049  
Suncor Energy Inc.     37,461       1,032,281  
TC Energy Corp.     21,248       1,107,394  
Teck Resources Ltd., Class B     12,027       120,955  
TELUS Corp.     10,405       375,475  
Thomson Reuters Corp.     5,040       374,372  
Toronto-Dominion Bank (The)     42,820       2,202,326  
Waste Connections Inc.     7,614       734,675  
Wheaton Precious Metals Corp.     11,273       320,550  
              33,751,717  
Denmark — 0.6%                
AP Moller - Maersk A/S, Class A     173       162,621  
Carlsberg A/S, Class B     3,152       411,238  
Coloplast A/S, Class B     3,908       519,753  
Demant A/S(a)(b)     5,358       162,634  
DSV Panalpina A/S     6,380       639,393  
Genmab A/S(a)     1,777       397,550  
Novo Nordisk A/S, Class B     44,312       2,578,025  
Novozymes A/S, Class B     7,119       359,029  
Orsted A/S(c)     4,448       454,663  
Vestas Wind Systems A/S     5,180       494,461  
              6,179,367  
Finland — 0.4%                
Elisa OYJ     5,588       318,815  
Fortum OYJ     12,257       259,580  
Kone OYJ, Class B     8,274       463,517  
Metso OYJ     4,766       152,973  
Neste OYJ.     11,022       431,740  
Nokia OYJ     127,333       481,848  
Nordea Bank Abp     66,224       516,945  
Sampo OYJ, Class A     10,360       419,692  
Stora Enso OYJ, Class R     23,760       279,522  
UPM-Kymmene OYJ     16,700       508,682  
Wartsila OYJ Abp     13,419       138,616  
              3,971,930  
France — 3.7%                
Accor SA     5,378       192,997  
Air Liquide SA     11,193       1,511,049  
Airbus SE     13,442       1,596,135  
Alstom SA     8,675       423,947  
Atos SE     3,489       257,927  
AXA SA     45,984       1,058,460  
BNP Paribas SA     26,676       1,282,999  
Bollore SA     49,257       167,946  
Bouygues SA     8,254       321,683  
Bureau Veritas SA     8,485       205,514  
Capgemini SE     3,908       425,926  
Carrefour SA     15,542       267,093  
Security   Shares     Value  
France (continued)                
Cie. de Saint-Gobain     14,678     $ 509,488  
Cie. Generale des Etablissements Michelin SCA     4,433       468,634  
Credit Agricole SA     27,832       330,484  
Danone SA     14,447       1,011,192  
Dassault Systemes SE     3,272       510,366  
Edenred     7,119       368,863  
Electricite de France SA     16,800       232,335  
Engie SA     39,635       654,362  
EssilorLuxottica SA     7,198       973,307  
Eutelsat Communications SA     6,746       90,700  
Getlink SE     19,602       313,934  
Hermes International     811       561,231  
Iliad SA(b)     783       108,629  
Ingenico Group SA     1,956       274,909  
Ipsen SA     1,416       91,147  
Kering SA     1,883       1,046,187  
Klepierre SA     7,082       210,195  
Legrand SA     7,119       539,727  
L’Oreal SA     5,905       1,563,209  
LVMH Moet Hennessy Louis Vuitton SE     6,567       2,675,133  
Orange SA     43,354       580,514  
Pernod Ricard SA     4,850       779,943  
Peugeot SA     13,497       259,525  
Publicis Groupe SA     5,278       202,801  
Renault SA     4,447       129,423  
Safran SA     7,752       1,056,734  
Sanofi     26,231       2,418,311  
Schneider Electric SE     12,350       1,227,710  
SCOR SE     4,538       162,005  
SES SA     9,744       111,100  
Societe Generale SA     17,604       494,837  
Sodexo SA     2,581       245,916  
STMicroelectronics NV     18,966       508,538  
Suez     13,612       213,516  
Teleperformance     1,735       418,897  
Thales SA     3,278       326,945  
TOTAL SA     56,105       2,365,303  
Ubisoft Entertainment SA(a)     2,847       210,717  
Unibail-Rodamco-Westfield     3,557       425,883  
Unibail-Rodamco-Westfield, New     510       61,063  
Valeo SA     6,536       163,548  
Veolia Environnement SA     13,503       384,603  
Vinci SA     12,567       1,255,908  
Vivendi SA     20,895       528,357  
Worldline SA(a)(c)     4,504       340,630  
              35,118,435  
Germany — 2.6%                
adidas AG     4,328       1,191,137  
Allianz SE, Registered     9,849       2,107,469  
BASF SE     21,522       1,254,855  
Bayer AG, Registered     22,083       1,581,803  
Bayerische Motoren Werke AG     7,122       461,019  
Beiersdorf AG     3,963       413,114  
Brenntag AG     5,588       248,042  
Commerzbank AG     29,470       168,687  
Continental AG     2,494       278,391  
Daimler AG, Registered     20,247       834,901  
Deutsche Bank AG, Registered     49,571       429,021  
Deutsche Boerse AG     5,145       802,799  
Deutsche Lufthansa AG, Registered     7,421       95,292  

 

10 2 0 2 0   i  S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI World ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Germany (continued)                
Deutsche Post AG, Registered     23,755     $ 707,660  
Deutsche Telekom AG, Registered     74,689       1,210,613  
Deutsche Wohnen SE     8,259       330,769  
E.ON SE     55,121       631,512  
Fresenius Medical Care AG & Co. KGaA     5,693       433,491  
Fresenius SE & Co. KGaA     9,311       433,806  
GEA Group AG     5,378       141,425  
Hannover Rueck SE     1,632       288,620  
HeidelbergCement AG     4,118       243,541  
Henkel AG & Co. KGaA     3,001       253,332  
Infineon Technologies AG     29,918       617,635  
LANXESS AG     3,803       197,633  
Merck KGaA     3,803       455,546  
MTU Aero Engines AG     1,397       338,672  
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen, Registered     3,383       857,294  
Puma SE     3,750       285,048  
QIAGEN NV(a)     11,608       423,327  
RWE AG     15,647       535,561  
SAP SE     23,564       2,887,604  
Siemens AG, Registered     17,184       1,759,221  
Symrise AG     3,272       316,786  
thyssenkrupp AG(a)(b)     11,491       109,839  
TUI AG     13,862       106,236  
United Internet AG, Registered(d)     3,646       108,174  
Vonovia SE     13,763       734,431  
Wirecard AG(b)     2,910       367,436  
Zalando SE(a)(c)     6,027       261,703  
              24,903,445  
Hong Kong — 1.2%                
AIA Group Ltd.     285,200       2,814,287  
ASM Pacific Technology Ltd.     21,400       253,596  
Bank of East Asia Ltd. (The)(b)     96,600       205,272  
BeiGene Ltd., ADR(a)(b)     1,057       167,376  
BOC Hong Kong Holdings Ltd.     108,500       372,431  
CK Asset Holdings Ltd.     62,000       387,448  
CK Hutchison Holdings Ltd.     63,500       552,861  
CLP Holdings Ltd.     54,000       566,813  
Galaxy Entertainment Group Ltd.     49,000       323,500  
Hang Seng Bank Ltd.     22,200       462,912  
Hong Kong & China Gas Co. Ltd.     324,590       624,768  
Hong Kong Exchanges & Clearing Ltd.     26,500       869,839  
Jardine Matheson Holdings Ltd.     4,800       261,120  
Link REIT     54,000       500,292  
Melco Resorts & Entertainment Ltd., ADR     19,321       335,026  
MTR Corp. Ltd.     76,500       430,451  
New World Development Co. Ltd.     174,333       224,151  
Sands China Ltd.     63,200       293,980  
Sun Hung Kai Properties Ltd.     41,000       582,930  
Techtronic Industries Co. Ltd.     31,500       254,852  
WH Group Ltd.(c)     300,000       304,887  
Wynn Macau Ltd.     136,000       273,988  
              11,062,780  
Ireland — 0.6%                
AIB Group PLC     22,581       52,039  
Bank of Ireland Group PLC     36,627       135,022  
CRH PLC(a)     20,877       698,748  
Flutter Entertainment PLC     2,469       260,305  
Kerry Group PLC, Class A     5,492       693,759  
Security   Shares     Value  
Ireland (continued)                
Linde PLC     13,100     $ 2,502,231  
Smurfit Kappa Group PLC     7,814       259,387  
Trane Technologies PLC     6,641       856,954  
              5,458,445  
Israel — 0.2%                
Bank Hapoalim BM     64,031       500,122  
Check Point Software Technologies Ltd.(a)(b)     2,997       311,089  
Nice Ltd.(a)     3,701       591,498  
Teva Pharmaceutical Industries Ltd., ADR(a)(b)     29,266       337,437  
Wix.com Ltd.(a)     1,712       229,459  
              1,969,605  
Italy — 0.7%                
Assicurazioni Generali SpA     24,570       438,840  
Atlantia SpA     14,552       309,862  
CNH Industrial NV     29,335       269,062  
Enel SpA     187,162       1,557,535  
Eni SpA     56,735       695,373  
Ferrari NV     3,158       491,023  
FinecoBank Banca Fineco SpA     9,254       96,507  
Intesa Sanpaolo SpA     367,463       887,402  
Leonardo SpA     3,996       40,549  
Mediobanca Banca di Credito Finanziario SpA     21,121       190,011  
Snam SpA.     83,470       409,935  
Telecom Italia SpA/Milano(a)     735,215       403,879  
Tenaris SA     15,561       139,615  
Terna Rete Elettrica Nazionale SpA     79,032       520,008  
UniCredit SpA     46,492       589,236  
              7,038,837  
Japan — 7.9%                
Aeon Co. Ltd.     17,000       317,494  
Aisin Seiki Co. Ltd.     12,700       412,089  
Ajinomoto Co. Inc.     28,100       472,046  
Alfresa Holdings Corp.     5,200       91,403  
Alps Alpine Co. Ltd.     10,700       164,570  
ANA Holdings Inc.     10,700       288,418  
Asahi Group Holdings Ltd.     10,700       411,672  
Asahi Kasei Corp.     35,200       293,929  
Astellas Pharma Inc.     47,700       751,331  
Bridgestone Corp.     10,700       357,708  
Canon Inc.     28,000       709,572  
Casio Computer Co. Ltd.     15,500       266,847  
Central Japan Railway Co.     3,000       494,507  
Chubu Electric Power Co. Inc.     28,100       366,669  
Chugai Pharmaceutical Co. Ltd.     4,700       510,457  
Chugoku Electric Power Co. Inc. (The)     28,100       374,094  
Coca-Cola Bottlers Japan Holdings Inc.     11,400       262,634  
Concordia Financial Group Ltd.     58,500       201,752  
Daifuku Co. Ltd.     5,000       297,594  
Dai-ichi Life Holdings Inc.     32,400       444,105  
Daiichi Sankyo Co. Ltd.     13,100       800,343  
Daikin Industries Ltd.     4,500       614,310  
Daito Trust Construction Co. Ltd.     1,600       162,796  
Daiwa House Industry Co. Ltd.     17,500       483,394  
Denso Corp.     10,800       422,528  
Dentsu Group Inc.     5,100       132,955  
East Japan Railway Co.     7,200       555,294  
Eisai Co. Ltd.     5,300       392,150  
FANUC Corp.     4,100       683,048  
Fast Retailing Co. Ltd.     1,100       544,977  

 

S c h e d u l e   o f   I n v e s t m e n t s 11

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI World ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Japan (continued)                
Fuji Electric Co. Ltd.     3,600     $ 98,890  
FUJIFILM Holdings Corp.     10,800       528,360  
Fujitsu Ltd.     4,000       415,705  
Hakuhodo DY Holdings Inc.     17,500       204,260  
Hamamatsu Photonics KK     6,100       236,671  
Hikari Tsushin Inc.     600       113,976  
Hitachi Ltd.     21,400       721,567  
Honda Motor Co. Ltd.     42,800       1,110,820  
Hoya Corp.     10,800       962,103  
Hulic Co. Ltd.     28,200       315,817  
Idemitsu Kosan Co. Ltd.     4,800       118,281  
Iida Group Holdings Co. Ltd.     21,500       290,813  
Inpex Corp.     32,100       277,626  
ITOCHU Corp.     35,000       798,707  
Japan Airlines Co. Ltd.     12,600       312,824  
Japan Exchange Group Inc.     28,200       474,510  
Japan Retail Fund Investment Corp.     175       332,754  
Japan Tobacco Inc.     28,000       556,548  
JFE Holdings Inc.     15,900       147,701  
JGC Holdings Corp.     12,000       147,406  
JTEKT Corp.     32,200       314,343  
JXTG Holdings Inc.     111,500       448,626  
Kansai Electric Power Co. Inc. (The)     22,200       239,669  
Kao Corp.     10,700       780,490  
KDDI Corp.     42,800       1,213,391  
Keyence Corp.     3,800       1,212,237  
Kikkoman Corp.     3,300       153,275  
Kirin Holdings Co. Ltd.     21,400       411,672  
Komatsu Ltd.     21,400       433,000  
Konami Holdings Corp.     2,800       101,108  
Konica Minolta Inc.     22,000       119,520  
Kose Corp.     900       107,968  
Kubota Corp.     26,200       369,931  
Kuraray Co. Ltd.     22,500       234,460  
Kyocera Corp.     10,700       674,150  
Kyushu Electric Power Co. Inc.     21,400       155,146  
LIXIL Group Corp.     11,900       178,723  
M3 Inc.     10,900       281,532  
Makita Corp.     7,300       252,774  
Marubeni Corp.     56,700       376,791  
Marui Group Co. Ltd.     10,700       208,911  
Mazda Motor Corp.     21,400       148,797  
MEIJI Holdings Co. Ltd.     2,500       149,261  
MINEBEA MITSUMI Inc.     17,400       307,139  
Mitsubishi Chemical Holdings Corp.     45,400       305,697  
Mitsubishi Corp.     32,100       800,528  
Mitsubishi Electric Corp.     45,500       578,320  
Mitsubishi Estate Co. Ltd.     32,400       553,892  
Mitsubishi Heavy Industries Ltd.     10,800       342,328  
Mitsubishi Motors Corp.     45,800       152,433  
Mitsubishi UFJ Financial Group Inc.     300,800       1,483,294  
Mitsubishi UFJ Lease & Finance Co. Ltd.     58,700       335,771  
Mitsui & Co. Ltd.     42,800       707,679  
Mitsui Fudosan Co. Ltd.     28,100       645,416  
Mizuho Financial Group Inc.     680,400       931,044  
MS&AD Insurance Group Holdings Inc.     12,400       400,400  
Murata Manufacturing Co. Ltd.     13,000       689,501  
Nagoya Railroad Co. Ltd.     10,800       282,253  
NEC Corp.     8,600       322,106  
Nexon Co. Ltd.     13,300       211,710  
Security   Shares     Value  
Japan (continued)                
Nidec Corp.     4,700     $ 556,863  
Nintendo Co. Ltd.     2,200       739,758  
Nippon Paint Holdings Co. Ltd.     4,100       187,202  
Nippon Steel Corp.     21,447       241,780  
Nippon Telegraph & Telephone Corp.     25,600       600,336  
Nissan Motor Co. Ltd.     55,900       240,256  
Nitori Holdings Co. Ltd.     1,700       235,855  
Nitto Denko Corp.     3,500       175,868  
Nomura Holdings Inc.     99,600       442,759  
Nomura Real Estate Master Fund Inc.     175       277,917  
Nomura Research Institute Ltd.     21,400       467,223  
NTT Data Corp.     32,100       384,194  
NTT DOCOMO Inc.     32,100       871,207  
Odakyu Electric Railway Co. Ltd.     13,400       258,894  
Olympus Corp.     32,600       592,975  
Omron Corp.     3,800       205,739  
Oriental Land Co. Ltd.     3,600       409,345  
ORIX Corp.     32,100       518,409  
Orix JREIT Inc.     214       406,712  
Otsuka Corp.     10,700       457,799  
Otsuka Holdings Co. Ltd.     10,800       408,511  
Pan Pacific International Holdings Corp.     21,400       354,732  
Panasonic Corp.     53,500       511,118  
Rakuten Inc.     32,100       268,728  
Recruit Holdings Co. Ltd.     32,100       1,118,359  
Resona Holdings Inc.     79,700       302,352  
Ricoh Co. Ltd.     18,400       171,437  
Sankyo Co. Ltd.     10,700       351,657  
Santen Pharmaceutical Co. Ltd.     22,800       366,102  
Secom Co. Ltd.     4,300       341,839  
Sekisui House Ltd.     22,400       439,631  
Seven & i Holdings Co. Ltd.     17,500       599,638  
Seven Bank Ltd.     46,400       122,168  
Shin-Etsu Chemical Co. Ltd.     10,700       1,204,761  
Shionogi & Co. Ltd.     10,700       579,813  
Shiseido Co. Ltd.     10,700       636,653  
SMC Corp.     1,200       479,154  
Softbank Corp.     42,800       560,469  
SoftBank Group Corp.     38,600       1,793,926  
Sompo Holdings Inc.     10,800       402,103  
Sony Corp.     32,100       1,967,395  
Subaru Corp.     21,400       519,699  
Sumitomo Chemical Co. Ltd.     58,500       213,141  
Sumitomo Corp.     32,100       459,634  
Sumitomo Electric Industries Ltd.     28,000       334,993  
Sumitomo Metal Mining Co. Ltd.     13,600       338,597  
Sumitomo Mitsui Financial Group Inc.     32,100       1,036,818  
Sumitomo Mitsui Trust Holdings Inc.     10,800       370,463  
Sumitomo Realty & Development Co. Ltd.     4,900       153,180  
Suzuki Motor Corp.     10,800       434,243  
Sysmex Corp.     4,000       256,580  
T&D Holdings Inc.     21,400       211,292  
Takeda Pharmaceutical Co. Ltd.     35,926       1,253,322  
TDK Corp.     1,900       184,073  
Terumo Corp.     21,600       696,471  
Toho Co. Ltd.     3,200       98,642  
Tokio Marine Holdings Inc.     16,400       881,995  
Tokyo Electric Power Co. Holdings Inc.(a)     48,100       182,830  
Tokyo Electron Ltd.     3,300       683,007  
Tokyo Gas Co. Ltd.     21,400       433,099  

 

12 2 0 2 0   i  S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI World ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Japan (continued)                
Tokyu Corp.     21,400     $ 328,544  
Tokyu Fudosan Holdings Corp.     43,000       271,478  
Toray Industries Inc.     38,600       223,552  
Toshiba Corp.     13,600       368,794  
Tosoh Corp.     25,100       344,626  
Toyota Motor Corp.     53,500       3,534,923  
Unicharm Corp.     10,800       350,238  
United Urban Investment Corp.     214       342,432  
USS Co. Ltd.     21,400       338,464  
West Japan Railway Co.     3,400       240,126  
Yakult Honsha Co. Ltd.     6,800       311,111  
Yamada Denki Co. Ltd.     42,800       205,935  
Yamaha Corp.     3,800       186,715  
Yamaha Motor Co. Ltd.     6,800       108,936  
Yaskawa Electric Corp.     10,700       335,785  
Yokogawa Electric Corp.     10,800       173,917  
Z Holdings Corp.     123,100       448,508  
              76,169,111  
Netherlands — 1.3%                
Aegon NV     43,144       145,539  
AerCap Holdings NV(a)     4,433       230,871  
Akzo Nobel NV     4,979       394,601  
Altice Europe NV(a)     17,548       93,352  
ArcelorMittal SA     15,752       222,098  
ASML Holding NV     9,866       2,688,735  
Heineken Holding NV     4,124       361,495  
Heineken NV     5,483       543,377  
ING Groep NV     90,255       853,501  
Koninklijke Ahold Delhaize NV     29,907       695,791  
Koninklijke DSM NV     5,064       565,989  
Koninklijke KPN NV     95,446       230,759  
Koninklijke Philips NV     23,035       979,724  
NN Group NV     6,746       228,529  
NXP Semiconductors NV     7,534       856,540  
Prosus NV(a)     11,488       803,451  
Randstad NV     3,541       181,684  
Unilever NV     32,267       1,687,651  
Wolters Kluwer NV     5,258       383,041  
              12,146,728  
New Zealand — 0.1%                
a2 Milk Co. Ltd.(a)     26,566       268,584  
Fisher & Paykel Healthcare Corp. Ltd.     18,618       297,703  
Fletcher Building Ltd.     40,371       129,958  
Spark New Zealand Ltd.     85,017       239,139  
              935,384  
Norway — 0.2%                
DNB ASA     25,712       423,204  
Equinor ASA     22,428       334,462  
Norsk Hydro ASA     40,032       112,677  
Orkla ASA     29,566       247,283  
Telenor ASA     18,357       291,388  
Yara International ASA     6,218       223,858  
              1,632,872  
Portugal — 0.1%                
EDP - Energias de Portugal SA     77,318       358,404  
Galp Energia SGPS SA     15,746       213,954  
              572,358  
Singapore — 0.4%                
Ascendas REIT     198,023       434,155  
Security   Shares     Value  
Singapore (continued)                
CapitaLand Ltd.     121,000     $ 306,033  
CapitaLand Mall Trust     182,000       296,009  
DBS Group Holdings Ltd.     38,600       666,795  
Genting Singapore Ltd.     208,200       121,576  
Keppel Corp. Ltd.     58,300       264,829  
Oversea-Chinese Banking Corp. Ltd.     66,600       505,811  
Singapore Exchange Ltd.     3,400       20,682  
Singapore Press Holdings Ltd.(b)     3,700       5,010  
Singapore Telecommunications Ltd.     205,600       441,929  
United Overseas Bank Ltd.     21,500       377,101  
Venture Corp. Ltd.     14,300       168,543  
Wilmar International Ltd.     78,800       224,143  
              3,832,616  
Spain — 0.9%                
ACS Actividades de Construccion y Servicios SA     8,478       250,045  
Aena SME SA(c)     2,161       344,194  
Amadeus IT Group SA     11,257       785,193  
Banco Bilbao Vizcaya Argentaria SA     153,973       733,101  
Banco de Sabadell SA     163,952       142,490  
Banco Santander SA     387,818       1,417,297  
Bankia SA     43,024       67,581  
Bankinter SA     27,888       163,583  
CaixaBank SA     87,655       223,477  
Enagas SA     2,268       58,296  
Endesa SA     14,024       357,850  
Ferrovial SA     15,492       440,405  
Iberdrola SA     156,586       1,775,059  
Industria de Diseno Textil SA     25,828       798,069  
Naturgy Energy Group SA     10,280       237,472  
Red Electrica Corp. SA     5,764       109,819  
Repsol SA     34,090       379,330  
Telefonica SA     102,635       604,283  
              8,887,544  
Sweden — 0.8%                
Alfa Laval AB     9,639       214,850  
Assa Abloy AB, Class B     25,082       555,964  
Atlas Copco AB, Class A     13,547       473,826  
Atlas Copco AB, Class B     11,596       353,797  
Boliden AB     8,268       169,196  
Electrolux AB, Series B     7,014       140,676  
Epiroc AB, Class A     13,547       154,472  
Epiroc AB, Class B     11,596       128,278  
Essity AB, Class B     14,492       429,897  
Hennes & Mauritz AB, Class B     19,497       348,630  
Hexagon AB, Class B     7,329       387,499  
Investor AB, Class B     10,336       508,852  
Kinnevik AB, Class B     11,395       228,603  
Lundin Petroleum AB     6,458       179,317  
Millicom International Cellular SA, SDR     3,880       176,329  
Sandvik AB     32,250       526,905  
Skandinaviska Enskilda Banken AB, Class A     32,764       309,016  
Skanska AB, Class B     14,935       321,804  
SKF AB, Class B     20,501       355,248  
Svenska Handelsbanken AB, Class A     33,289       331,273  
Swedbank AB, Class A     18,530       276,657  
Swedish Match AB     4,838       279,249  
Telefonaktiebolaget LM Ericsson, Class B     66,396       525,136  
Telia Co. AB     55,647       217,707  

 

S c h e d u l e   o f   I n v e s t m e n t s 13

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI World ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Sweden (continued)                
Volvo AB, Class B     33,975     $ 521,447  
              8,114,628  
Switzerland — 3.2%                
ABB Ltd., Registered     44,681       960,599  
Adecco Group AG, Registered     4,328       229,736  
Alcon Inc.(a)     9,905       603,336  
Baloise Holding AG, Registered     2,371       379,428  
Chocoladefabriken Lindt & Spruengli AG, Participation Certificates, NVS     19       147,807  
Cie. Financiere Richemont SA, Registered     12,331       833,150  
Coca-Cola HBC AG     5,632       177,973  
Credit Suisse Group AG, Registered     60,475       675,381  
Geberit AG, Registered     1,216       601,750  
Givaudan SA, Registered     175       543,468  
Julius Baer Group Ltd.     7,651       317,833  
Kuehne + Nagel International AG, Registered     2,629       381,741  
LafargeHolcim Ltd., Registered     11,590       535,347  
Lonza Group AG, Registered     1,954       771,951  
Nestle SA, Registered     70,008       7,149,430  
Novartis AG, Registered     50,740       4,259,130  
Partners Group Holding AG     690       592,376  
Roche Holding AG, NVS     16,597       5,310,285  
Schindler Holding AG, Participation Certificates, NVS     1,216       269,468  
Schindler Holding AG, Registered     1,183       253,234  
Sika AG, Registered     2,521       446,407  
Sonova Holding AG, Registered     1,630       386,977  
Swatch Group AG (The), Bearer     1,006       230,623  
Swiss Life Holding AG, Registered     1,111       503,419  
Swiss Prime Site AG, Registered     3,712       444,849  
Swiss Re AG     6,218       588,685  
Swisscom AG, Registered     672       356,567  
Temenos AG, Registered(a)     2,060       292,097  
UBS Group AG, Registered     96,760       1,059,617  
Zurich Insurance Group AG     3,317       1,271,011  
              30,573,675  
United Kingdom — 5.1%                
3i Group PLC     27,108       349,021  
Admiral Group PLC     6,536       176,319  
Amcor PLC(a)     32,764       305,360  
Anglo American PLC     24,177       553,331  
Antofagasta PLC     16,172       155,337  
Aptiv PLC     6,131       478,892  
Ashtead Group PLC     12,563       383,356  
Associated British Foods PLC     9,429       271,585  
AstraZeneca PLC     31,382       2,723,324  
Auto Trader Group PLC(c)     47,013       312,018  
Aviva PLC     91,179       408,552  
BAE Systems PLC     77,282       600,566  
Barclays PLC     395,052       750,542  
BP PLC     473,397       2,395,402  
British American Tobacco PLC     53,531       2,093,990  
British Land Co. PLC (The)     34,998       223,962  
BT Group PLC     190,682       344,927  
Bunzl PLC     11,405       272,414  
Burberry Group PLC     11,071       233,185  
Capri Holdings Ltd.(a)     4,335       111,930  
Carnival PLC     7,181       223,345  
Coca-Cola European Partners PLC     6,112       311,468  
Compass Group PLC     35,797       782,101  
Security   Shares     Value  
United Kingdom (continued)                
Croda International PLC     6,243     $ 363,145  
Diageo PLC     55,475       1,959,585  
Experian PLC     24,452       809,236  
Ferguson PLC     5,484       472,118  
Fiat Chrysler Automobiles NV.     26,564       328,033  
G4S PLC     50,622       110,665  
GlaxoSmithKline PLC     112,248       2,239,796  
Glencore PLC     229,469       566,447  
GVC Holdings PLC     14,124       142,449  
HSBC Holdings PLC     469,456       3,141,496  
Imperial Brands PLC     21,348       423,960  
Informa PLC     34,373       299,605  
InterContinental Hotels Group PLC     5,476       300,903  
Intertek Group PLC     6,218       418,557  
ITV PLC     127,485       189,786  
J Sainsbury PLC     55,771       139,445  
Johnson Matthey PLC     9,264       297,124  
Kingfisher PLC     53,518       129,437  
Land Securities Group PLC     17,984       191,716  
Legal & General Group PLC     129,957       431,585  
Lloyds Banking Group PLC     1,648,827       1,057,236  
London Stock Exchange Group PLC     8,686       840,529  
M&G PLC(a)     75,806       192,492  
Marks & Spencer Group PLC     55,664       112,622  
Meggitt PLC     26,966       186,685  
Melrose Industries PLC     136,571       365,282  
Micro Focus International PLC     10,423       98,612  
National Grid PLC     81,999       1,029,359  
Next PLC     3,803       295,438  
NMC Health PLC     2,944       35,287  
Ocado Group PLC(a)     11,128       151,235  
Pearson PLC     19,908       141,789  
Prudential PLC     58,686       949,739  
Reckitt Benckiser Group PLC     17,036       1,244,895  
RELX PLC     49,335       1,176,817  
Rio Tinto PLC     30,412       1,401,537  
Rolls-Royce Holdings PLC     42,409       335,848  
Royal Bank of Scotland Group PLC     124,893       284,993  
Royal Dutch Shell PLC, Class A     95,896       2,035,016  
Royal Dutch Shell PLC, Class B     92,275       1,960,768  
RSA Insurance Group PLC     31,245       207,049  
Sage Group PLC (The)     34,511       300,544  
Segro PLC     38,844       407,442  
Severn Trent PLC     8,904       280,347  
Smith & Nephew PLC     21,655       481,006  
Smiths Group PLC     14,177       277,600  
SSE PLC     25,714       502,193  
Standard Chartered PLC     70,767       508,538  
Taylor Wimpey PLC     135,510       349,982  
Tesco PLC     231,252       674,940  
Unilever PLC     29,343       1,562,909  
United Utilities Group PLC     21,445       258,633  
Vodafone Group PLC     636,075       1,091,620  
Weir Group PLC (The)     13,544       225,848  
Whitbread PLC     4,748       236,156  
WPP PLC     31,954       307,254  
              48,984,255  
United States — 63.1%                
3M Co.     13,386       1,997,727  
Abbott Laboratories     41,637       3,207,298  

 

14 2 0 2 0   i  S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI World ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
United States (continued)                
AbbVie Inc.     34,923     $ 2,993,250  
ABIOMED Inc.(a)     1,111       166,939  
Accenture PLC, Class A     15,329       2,768,264  
Activision Blizzard Inc.     18,791       1,092,321  
Acuity Brands Inc.     1,645       169,205  
Adobe Inc.(a)     12,026       4,150,413  
Advance Auto Parts Inc.     1,844       245,215  
Advanced Micro Devices Inc.(a)     23,914       1,087,609  
AES Corp./VA     18,089       302,629  
Aflac Inc.     17,604       754,331  
Agilent Technologies Inc.     7,943       612,167  
AGNC Investment Corp.     19,368       330,031  
Air Products & Chemicals Inc.     5,278       1,159,102  
Akamai Technologies Inc.(a)     5,075       439,038  
Albemarle Corp.     2,902       237,529  
Alexandria Real Estate Equities Inc.     1,605       243,767  
Alexion Pharmaceuticals Inc.(a)     5,378       505,693  
Align Technology Inc.(a)     1,871       408,533  
Alleghany Corp.(a)     398       267,556  
Allergan PLC     8,069       1,538,516  
Alliance Data Systems Corp.     1,321       113,447  
Alliant Energy Corp.     5,572       290,413  
Allstate Corp. (The)     8,064       848,736  
Alnylam Pharmaceuticals Inc.(a)     3,264       384,042  
Alphabet Inc., Class A(a)     7,065       9,461,801  
Alphabet Inc., Class C, NVS(a)     7,383       9,888,273  
Altria Group Inc.     44,106       1,780,559  
Amazon.com Inc.(a)     9,895       18,639,706  
Ameren Corp.     7,228       571,012  
American Airlines Group Inc.     3,533       67,304  
American Electric Power Co. Inc.     12,678       1,131,638  
American Express Co.     16,907       1,858,587  
American Financial Group Inc./OH     1,791       165,524  
American International Group Inc.     20,664       871,194  
American Tower Corp.     10,915       2,475,522  
American Water Works Co. Inc.     5,052       624,730  
Ameriprise Financial Inc.     3,383       478,018  
AmerisourceBergen Corp.     3,908       329,523  
AMETEK Inc.     6,160       529,760  
Amgen Inc.     14,466       2,889,294  
Amphenol Corp., Class A     8,064       739,308  
Analog Devices Inc.     8,892       969,673  
Annaly Capital Management Inc.     34,414       304,908  
ANSYS Inc.(a)     2,366       573,022  
Anthem Inc.     6,008       1,544,597  
Aon PLC     5,714       1,188,512  
Apache Corp.     9,754       243,070  
Apple Inc.     106,429       29,093,431  
Applied Materials Inc.     23,233       1,350,302  
Arch Capital Group Ltd.(a)     11,491       464,581  
Archer-Daniels-Midland Co.     11,831       445,437  
Arconic Inc.     11,174       327,957  
Arista Networks Inc.(a)     1,287       248,545  
Arrow Electronics Inc.(a)     2,522       169,125  
Arthur J Gallagher & Co.     4,291       418,330  
Assurant Inc.     2,374       286,281  
AT&T Inc.     171,257       6,031,672  
Autodesk Inc.(a)     5,380       1,026,934  
Autoliv Inc.     3,122       208,331  
Automatic Data Processing Inc.     10,873       1,682,488  
Security   Shares     Value  
United States (continued)                
AutoZone Inc.(a)     585     $ 604,018  
AvalonBay Communities Inc.     3,106       623,033  
Avery Dennison Corp.     3,278       375,298  
Baker Hughes Co.     14,239       229,106  
Ball Corp.     9,218       649,500  
Bank of America Corp.     210,909       6,010,906  
Bank of New York Mellon Corp. (The)     20,893       833,631  
Baxter International Inc.     11,591       967,501  
Becton Dickinson and Co.     6,444       1,532,512  
Berkshire Hathaway Inc., Class B(a)     30,391       6,270,879  
Best Buy Co. Inc.     5,580       422,127  
Biogen Inc.(a)     4,320       1,332,245  
BioMarin Pharmaceutical Inc.(a)     5,056       456,911  
BlackRock Inc.(e)     2,686       1,243,645  
Blackstone Group Inc. (The), Class A     14,231       766,197  
Boeing Co. (The)     12,645       3,478,766  
Booking Holdings Inc.(a)     1,005       1,704,138  
BorgWarner Inc.     7,179       226,856  
Boston Properties Inc.     3,908       503,898  
Boston Scientific Corp.(a)     33,401       1,248,863  
Bristol-Myers Squibb Co.     55,545       3,280,488  
Broadcom Inc.     9,431       2,571,079  
Brown & Brown Inc.     5,621       241,759  
Brown-Forman Corp., Class B, NVS     7,602       466,839  
Bunge Ltd.     4,017       188,598  
Cabot Oil & Gas Corp.     12,646       176,159  
Cadence Design Systems Inc.(a)     7,602       502,796  
Campbell Soup Co.     5,281       238,279  
Capital One Financial Corp.     11,491       1,014,196  
Cardinal Health Inc.     7,434       387,460  
CarMax Inc.(a)     4,521       394,729  
Carnival Corp.     5,942       198,819  
Caterpillar Inc.     13,176       1,636,986  
Cboe Global Markets Inc.     2,819       321,366  
CBRE Group Inc., Class A(a)     8,169       458,608  
CDK Global Inc.     5,066       233,137  
CDW Corp./DE     3,294       376,241  
Celanese Corp.     4,013       376,179  
Centene Corp.(a)     14,051       744,984  
CenterPoint Energy Inc.     16,585       381,787  
CenturyLink Inc.     24,454       295,160  
Cerner Corp.     7,870       545,155  
CF Industries Holdings Inc.     7,393       272,506  
CH Robinson Worldwide Inc.     3,474       239,359  
Charles Schwab Corp. (The)     28,188       1,148,661  
Charter Communications Inc., Class A(a)     3,853       1,900,184  
Cheniere Energy Inc.(a)     5,798       297,379  
Chevron Corp.     43,895       4,097,159  
Chipotle Mexican Grill Inc.(a)     586       453,318  
Chubb Ltd.     9,755       1,414,768  
Church & Dwight Co. Inc.     6,794       472,319  
Cigna Corp.(a)     9,097       1,664,205  
Cincinnati Financial Corp.     3,908       364,382  
Cintas Corp.     2,789       743,938  
Cisco Systems Inc.     101,502       4,052,975  
Citigroup Inc.     54,286       3,444,990  
Citizens Financial Group Inc.     14,144       448,223  
Citrix Systems Inc.     3,585       370,653  
Clorox Co. (The)     3,061       487,985  
CME Group Inc.     8,382       1,666,509  

 

S c h e d u l e   o f   I n v e s t m e n t s 15

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI World ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
United States (continued)                
CMS Energy Corp.     7,320     $ 442,274  
Coca-Cola Co. (The)     92,383       4,941,567  
Cognex Corp.     6,238       277,841  
Cognizant Technology Solutions Corp., Class A     13,383       815,426  
Colgate-Palmolive Co.     19,925       1,346,332  
Comcast Corp., Class A     105,190       4,252,832  
Comerica Inc.     4,738       249,408  
Conagra Brands Inc.     12,976       346,329  
Concho Resources Inc.     5,077       345,338  
ConocoPhillips     25,605       1,239,794  
Consolidated Edison Inc.     7,434       585,948  
Constellation Brands Inc., Class A     4,016       692,278  
Continental Resources Inc./OK     2,694       51,051  
Copart Inc.(a)     5,378       454,333  
Corning Inc.     18,329       437,330  
Corteva Inc.(a)     17,496       475,891  
CoStar Group Inc.(a)(b)     1,005       670,928  
Costco Wholesale Corp.     10,446       2,936,788  
Crown Castle International Corp.     10,075       1,443,647  
Crown Holdings Inc.(a)     4,958       349,539  
CSX Corp.     19,474       1,371,943  
Cummins Inc.     3,908       591,241  
CVS Health Corp.     30,343       1,795,699  
Danaher Corp.     15,248       2,204,556  
Darden Restaurants Inc.     3,275       319,312  
DaVita Inc.(a)     3,593       278,889  
Deere & Co.     6,746       1,055,614  
Dell Technologies Inc., Class C(a)(b)     3,778       152,858  
Delta Air Lines Inc.     4,496       207,400  
Dentsply Sirona Inc.     5,798       285,494  
Devon Energy Corp.     9,340       151,682  
DexCom Inc.(a)     2,361       651,636  
Diamondback Energy Inc.     3,854       238,948  
Digital Realty Trust Inc.     4,958       595,505  
Discover Financial Services     7,918       519,262  
Discovery Inc., Class A(a)(b)     3,488       89,642  
Discovery Inc., Class C, NVS(a)     9,131       229,188  
DISH Network Corp., Class A(a)     6,889       230,919  
DocuSign Inc.(a)     2,461       212,409  
Dollar General Corp.     6,486       974,846  
Dollar Tree Inc.(a)     5,483       455,253  
Dominion Energy Inc.     18,534       1,448,988  
Domino’s Pizza Inc.     1,112       377,480  
Dover Corp.     4,643       477,022  
Dow Inc.(a)     17,496       707,013  
DR Horton Inc.     9,114       485,503  
DTE Energy Co.     4,433       495,033  
Duke Energy Corp.     16,401       1,503,972  
Duke Realty Corp.     12,856       417,434  
DuPont de Nemours Inc.     17,496       750,578  
DXC Technology Co.     6,471       156,016  
E*TRADE Financial Corp.     5,582       255,544  
Eastman Chemical Co.     3,908       240,381  
Eaton Corp. PLC     10,126       918,631  
Eaton Vance Corp., NVS     7,708       318,032  
eBay Inc.     20,355       705,097  
Ecolab Inc.     6,536       1,179,421  
Edison International     8,174       549,211  
Edwards Lifesciences Corp.(a)     5,171       1,059,228  
Elanco Animal Health Inc.(a)     8,025       219,885  
Security   Shares     Value  
United States (continued)                
Electronic Arts Inc.(a)     7,175     $ 727,330  
Eli Lilly & Co.     21,964       2,770,319  
Emerson Electric Co.     14,072       902,156  
Entergy Corp.     4,643       542,813  
EOG Resources Inc.     13,283       840,283  
Equifax Inc.     2,896       411,348  
Equinix Inc.     2,060       1,179,968  
Equity Residential.     8,484       637,148  
Essex Property Trust Inc.     1,741       493,330  
Estee Lauder Companies Inc. (The), Class A     5,168       948,845  
Everest Re Group Ltd.     1,191       295,225  
Evergy Inc.     7,224       472,088  
Eversource Energy     7,422       641,706  
Exact Sciences Corp.(a)     3,460       280,087  
Exelon Corp.     20,500       883,755  
Expedia Group Inc.     3,429       338,168  
Expeditors International of Washington Inc.     6,008       423,083  
Exxon Mobil Corp.     97,397       5,010,102  
F5 Networks Inc.(a)     2,161       259,212  
Facebook Inc., Class A(a)     56,528       10,879,944  
Fastenal Co.     12,885       440,925  
Federal Realty Investment Trust     3,657       425,455  
FedEx Corp.     5,798       818,504  
Fidelity National Financial Inc.     7,014       271,863  
Fidelity National Information Services Inc.     14,900       2,081,828  
Fifth Third Bancorp.     18,578       453,303  
First Republic Bank/CA(b)     4,538       456,387  
FirstEnergy Corp.     10,738       478,163  
Fiserv Inc.(a)     13,821       1,511,465  
FleetCor Technologies Inc.(a)     2,162       574,638  
Flex Ltd.(a)(b)     15,307       170,061  
FLIR Systems Inc.     4,936       209,632  
Flowserve Corp.     4,643       186,602  
FMC Corp.     4,333       403,402  
Ford Motor Co.     85,743       596,771  
Fortinet Inc.(a)     4,089       417,323  
Fortive Corp.     7,603       525,823  
Fox Corp., Class A, NVS     9,036       277,767  
Fox Corp., Class B(a)     4,113       125,241  
Franklin Resources Inc.     9,009       196,036  
Freeport-McMoRan Inc.     34,279       341,419  
Gap Inc. (The)     6,113       87,599  
Garmin Ltd.     3,907       345,340  
Gartner Inc.(a)     2,480       320,887  
General Dynamics Corp.     6,113       976,185  
General Electric Co.     207,959       2,262,594  
General Mills Inc.     14,609       715,841  
General Motors Co.     29,343       894,961  
Genuine Parts Co.     3,902       340,410  
Gilead Sciences Inc.     29,775       2,065,194  
Global Payments Inc.     8,302       1,527,319  
Globe Life Inc.     3,272       303,184  
Goldman Sachs Group Inc. (The)     7,866       1,579,257  
Grubhub Inc.(a)     3,169       152,461  
Halliburton Co.     17,695       300,107  
Hanesbrands Inc.     9,429       124,840  
Harley-Davidson Inc.     4,223       128,675  
Hartford Financial Services Group Inc. (The)     9,639       481,468  
Hasbro Inc.     3,639       281,113  
HCA Healthcare Inc.     6,318       802,449  

 

16 2 0 2 0   i  S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI World ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
United States (continued)                
Healthpeak Properties Inc.     12,445     $ 393,760  
HEICO Corp., Class A     3,681       325,143  
Henry Schein Inc.(a)     4,026       245,344  
Hershey Co. (The)     4,013       577,832  
Hess Corp.     7,277       408,822  
Hewlett Packard Enterprise Co.     25,934       331,696  
Hilton Worldwide Holdings Inc.     6,644       645,797  
HollyFrontier Corp.     4,655       156,780  
Hologic Inc.(a)     7,297       343,835  
Home Depot Inc. (The)     25,591       5,574,743  
Honeywell International Inc.     16,384       2,656,993  
Hormel Foods Corp.     8,169       339,830  
Host Hotels & Resorts Inc.     16,974       245,784  
HP Inc.     34,597       719,272  
Humana Inc.     3,374       1,078,600  
Huntington Bancshares Inc./OH     30,560       374,971  
IAC/InterActiveCorp.(a)     1,981       404,005  
IDEXX Laboratories Inc.(a)     2,266       576,720  
IHS Markit Ltd.     9,749       694,519  
Illinois Tool Works Inc.     7,539       1,264,893  
Illumina Inc.(a)     3,913       1,039,567  
Incyte Corp.(a)     4,857       366,266  
Insulet Corp.(a)     1,498       284,575  
Intel Corp.     104,754       5,815,942  
Intercontinental Exchange Inc.     13,862       1,236,768  
International Business Machines Corp.     21,209       2,760,351  
International Flavors & Fragrances Inc.     2,799       335,264  
International Paper Co.     9,856       364,278  
Interpublic Group of Companies Inc. (The)     13,187       281,674  
Intuit Inc.     6,326       1,681,767  
Intuitive Surgical Inc.(a)     2,800       1,495,088  
IPG Photonics Corp.(a)     1,514       193,247  
IQVIA Holdings Inc.(a)     4,089       570,375  
Iron Mountain Inc.     9,636       293,031  
Jacobs Engineering Group Inc.     4,118       380,256  
Jazz Pharmaceuticals PLC(a)     1,830       209,681  
JB Hunt Transport Services Inc.     3,114       300,314  
Jefferies Financial Group Inc.     14,280       281,459  
JM Smucker Co. (The)     3,211       330,701  
Johnson & Johnson     62,709       8,433,106  
Johnson Controls International PLC     24,666       902,036  
JPMorgan Chase & Co.     73,774       8,565,899  
Juniper Networks Inc.     12,460       264,401  
Kansas City Southern     3,211       483,833  
Kellogg Co.     6,536       395,232  
KeyCorp     25,410       415,453  
Keysight Technologies Inc.(a)     4,874       461,860  
Kimberly-Clark Corp.     8,484       1,113,016  
Kimco Realty Corp.     20,820       361,227  
Kinder Morgan Inc./DE     51,742       991,894  
KLA Corp.     4,112       632,056  
Kohl’s Corp.     4,111       160,946  
Kraft Heinz Co. (The)     14,805       366,720  
Kroger Co. (The)     19,537       549,576  
L3Harris Technologies Inc.     6,023       1,190,928  
Laboratory Corp. of America Holdings(a)     2,791       490,351  
Lam Research Corp.     3,752       1,100,949  
Lamb Weston Holdings Inc.     3,662       318,191  
Las Vegas Sands Corp.     7,303       425,838  
Leggett & Platt Inc.     6,352       251,920  
Security   Shares     Value  
United States (continued)                
Lennar Corp., Class A     7,665     $ 462,506  
Lennox International Inc.     985       224,708  
Liberty Global PLC, Class C, NVS(a)     14,793       275,002  
Liberty Media Corp.-Liberty Formula One, Class C, NVS(a)     5,716       223,267  
Liberty Media Corp.-Liberty SiriusXM, Class C, NVS(a)     5,605       250,095  
Lincoln National Corp.     5,798       263,171  
LKQ Corp.(a)     8,780       259,712  
Lockheed Martin Corp.     5,931       2,193,699  
Loews Corp.     8,274       377,543  
Lowe’s Companies Inc.     18,329       1,953,322  
Lululemon Athletica Inc.(a)     2,684       583,528  
LyondellBasell Industries NV, Class A     6,150       439,479  
M&T Bank Corp.     2,953       414,542  
ManpowerGroup Inc.     2,374       180,282  
Marathon Oil Corp.     21,131       174,965  
Marathon Petroleum Corp.     15,410       730,742  
Markel Corp.(a)     376       444,282  
MarketAxess Holdings Inc.     1,087       352,547  
Marriott International Inc./MD, Class A     7,222       895,528  
Marsh & McLennan Companies Inc.     11,387       1,190,625  
Martin Marietta Materials Inc.     1,848       420,475  
Marvell Technology Group Ltd.     16,161       344,229  
Masco Corp.     9,534       393,945  
Mastercard Inc., Class A     21,414       6,215,413  
Maxim Integrated Products Inc.     7,749       430,999  
McCormick & Co. Inc./MD, NVS     3,057       446,903  
McDonald’s Corp.     17,600       3,417,392  
McKesson Corp.     4,212       589,090  
Medtronic PLC     30,820       3,102,649  
MercadoLibre Inc.(a)(b)     1,007       620,342  
Merck & Co. Inc.     61,544       4,711,809  
MetLife Inc.     20,012       854,913  
Mettler-Toledo International Inc.(a)     395       277,171  
MGM Resorts International     14,347       352,362  
Microchip Technology Inc.     6,004       544,623  
Micron Technology Inc.(a)     26,248       1,379,595  
Microsoft Corp.     170,731       27,660,129  
Mid-America Apartment Communities Inc.     1,552       200,612  
Mohawk Industries Inc.(a)     1,649       199,776  
Molson Coors Beverage Co., Class B     4,963       246,214  
Mondelez International Inc., Class A     35,042       1,850,218  
Monster Beverage Corp.(a)     10,441       651,623  
Moody’s Corp.     4,853       1,164,866  
Morgan Stanley     30,745       1,384,447  
Mosaic Co. (The)     9,227       157,136  
Motorola Solutions Inc.     4,221       699,335  
MSCI Inc.     1,653       488,362  
Mylan NV(a)     12,445       213,930  
Nasdaq Inc.     3,593       368,462  
National Oilwell Varco Inc.     10,174       190,356  
NetApp Inc.     6,218       290,505  
Netflix Inc.(a)     10,339       3,815,401  
Neurocrine Biosciences Inc.(a)     2,461       233,057  
Newell Brands Inc.     13,164       203,121  
Newmont Corp.     17,899       798,832  
News Corp., Class A, NVS     14,475       174,786  
NextEra Energy Inc.     11,022       2,785,921  
Nielsen Holdings PLC     9,652       175,763  
NIKE Inc., Class B     29,133       2,603,908  
Noble Energy Inc.     11,999       189,944  

 

S c h e d u l e   o f   I n v e s t m e n t s 17

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI World ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
United States (continued)                
Nordstrom Inc.     4,339     $ 150,563  
Norfolk Southern Corp.     6,746       1,230,133  
Northern Trust Corp.     5,378       471,973  
Northrop Grumman Corp.     3,908       1,285,107  
NortonLifeLock Inc.     14,679       279,341  
NRG Energy Inc.     8,147       270,562  
Nucor Corp.     7,539       311,738  
NVIDIA Corp.     13,705       3,701,309  
O’Reilly Automotive Inc.(a)(b)     1,953       720,110  
Occidental Petroleum Corp.     19,502       638,495  
Okta Inc.(a)     3,483       446,033  
Omnicom Group Inc.     5,903       408,960  
ON Semiconductor Corp.(a)     13,825       257,975  
ONEOK Inc.     9,753       650,720  
Oracle Corp.     53,612       2,651,650  
PACCAR Inc.     8,484       567,580  
Palo Alto Networks Inc.(a)     2,048       378,102  
Parker-Hannifin Corp.     3,062       565,766  
Paychex Inc.     8,496       658,270  
Paycom Software Inc.(a)     1,442       407,581  
PayPal Holdings Inc.(a)     26,655       2,878,473  
Pentair PLC     7,218       284,317  
People’s United Financial Inc.     20,068       280,751  
PepsiCo Inc.     32,672       4,313,684  
Perrigo Co. PLC     3,590       181,977  
Pfizer Inc.     132,305       4,421,633  
Philip Morris International Inc.     36,633       2,999,144  
Phillips 66     10,441       781,613  
Pinnacle West Capital Corp.     4,127       369,325  
Pioneer Natural Resources Co.     3,478       427,029  
PNC Financial Services Group Inc. (The)     10,279       1,299,266  
PPG Industries Inc.     6,428       671,405  
PPL Corp.     15,639       469,326  
Principal Financial Group Inc.     7,439       330,217  
Procter & Gamble Co. (The)     58,542       6,628,711  
Progressive Corp. (The)     13,855       1,013,632  
Prologis Inc.     19,517       1,644,893  
Prudential Financial Inc.     9,849       743,107  
Public Service Enterprise Group Inc.     12,221       627,060  
Public Storage     3,698       773,326  
PulteGroup Inc.     8,710       350,142  
PVH Corp.     2,056       152,370  
Qorvo Inc.(a)     3,042       305,964  
QUALCOMM Inc.     28,728       2,249,402  
Quest Diagnostics Inc.     3,488       369,937  
Ralph Lauren Corp.     1,636       172,614  
Raymond James Financial Inc.     3,248       271,630  
Raytheon Co.     6,909       1,302,761  
Realty Income Corp.     7,658       554,363  
Regency Centers Corp.     5,273       302,881  
Regeneron Pharmaceuticals Inc.(a)     1,878       834,902  
Regions Financial Corp.     29,047       392,715  
Reinsurance Group of America Inc.     1,546       188,658  
RenaissanceRe Holdings Ltd.     1,322       225,269  
Republic Services Inc.     6,378       575,678  
ResMed Inc.(b)     4,134       657,141  
RingCentral Inc., Class A(a)(b)     1,712       403,604  
Robert Half International Inc.     4,328       218,174  
Rockwell Automation Inc.     2,675       490,862  
Roku Inc.(a)(b)     2,255       256,326  
Security   Shares     Value  
United States (continued)                
Roper Technologies Inc.     2,791     $ 981,595  
Ross Stores Inc.     9,121       992,182  
Royal Caribbean Cruises Ltd.     4,015       322,846  
S&P Global Inc.     6,536       1,737,988  
salesforce.com Inc.(a)     20,116       3,427,766  
Sarepta Therapeutics Inc.(a)     1,740       199,178  
SBA Communications Corp.     3,104       822,839  
Schlumberger Ltd.     31,371       849,840  
Seagate Technology PLC     6,008       288,084  
Seattle Genetics Inc.(a)     3,021       343,971  
SEI Investments Co.     6,224       340,515  
Sempra Energy     7,075       988,943  
ServiceNow Inc.(a)     4,646       1,515,014  
Sherwin-Williams Co. (The)     1,951       1,008,179  
Simon Property Group Inc.     7,064       869,437  
Sirius XM Holdings Inc.(b)     47,237       299,483  
Skyworks Solutions Inc.     4,324       433,178  
SL Green Realty Corp.     4,309       337,998  
Snap Inc., Class A, NVS(a)     16,799       238,042  
Southern Co. (The)     25,591       1,544,673  
Southwest Airlines Co.     4,124       190,488  
Spirit AeroSystems Holdings Inc., Class A     3,543       187,212  
Splunk Inc.(a)     3,375       497,239  
Sprint Corp.(a)     23,971       220,293  
Square Inc., Class A(a)     8,194       682,806  
SS&C Technologies Holdings Inc.     6,235       346,042  
Stanley Black & Decker Inc.     3,908       561,580  
Starbucks Corp.     28,893       2,266,078  
State Street Corp.     9,229       628,587  
Stryker Corp.     7,755       1,478,025  
SVB Financial Group(a)     1,321       274,979  
Synchrony Financial     16,596       482,944  
Synopsys Inc.(a)     3,535       487,583  
Sysco Corp.     12,436       828,859  
T-Mobile U.S. Inc.(a)     8,386       756,082  
T Rowe Price Group Inc.     5,804       684,930  
Take-Two Interactive Software Inc.(a)     2,954       317,496  
Tapestry Inc.     7,014       164,478  
Targa Resources Corp.     7,756       251,294  
Target Corp.     12,226       1,259,278  
TD Ameritrade Holding Corp.     6,746       284,884  
TE Connectivity Ltd.     8,169       676,965  
TechnipFMC PLC     13,437       199,405  
Teleflex Inc.     1,203       403,029  
Tesla Inc.(a)     3,106       2,074,777  
Texas Instruments Inc.     21,668       2,473,186  
Textron Inc.     6,995       283,997  
Thermo Fisher Scientific Inc.     9,221       2,681,467  
Tiffany & Co.     2,791       372,850  
TJX Companies Inc. (The)     28,609       1,710,818  
Tractor Supply Co.     3,488       308,723  
TransDigm Group Inc.     1,215       677,739  
TransUnion     5,177       460,339  
Travelers Companies Inc. (The)     5,672       679,562  
Trimble Inc.(a)     7,434       293,494  
TripAdvisor Inc.     3,683       86,366  
Truist Financial Corp.     35,547       1,640,139  
Twilio Inc., Class A(a)     3,334       375,542  
Twitter Inc.(a)     17,764       589,765  
Tyson Foods Inc., Class A     6,792       460,701  

 

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Schedule of Investments (unaudited) (continued) iShares® MSCI World ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
United States (continued)                
U.S. Bancorp.     36,611     $ 1,700,215  
Uber Technologies Inc.(a)     6,206       210,197  
UDR Inc.     8,169       367,442  
Ulta Salon Cosmetics & Fragrance Inc.(a)     1,425       366,353  
Under Armour Inc., Class A(a)(b)     6,021       85,438  
Under Armour Inc., Class C, NVS(a)     4,072       50,819  
Union Pacific Corp.     17,491       2,795,237  
United Parcel Service Inc., Class B     16,496       1,492,723  
United Rentals Inc.(a)     2,054       272,114  
United Technologies Corp.     19,062       2,489,307  
UnitedHealth Group Inc.     22,297       5,684,843  
Universal Health Services Inc., Class B     2,266       280,395  
Unum Group.     6,113       142,494  
Valero Energy Corp.     10,546       698,672  
Varian Medical Systems Inc.(a)     2,473       304,105  
Veeva Systems Inc., Class A(a)     3,379       479,717  
Ventas Inc.     8,494       456,722  
VEREIT Inc.     36,767       318,402  
VeriSign Inc.(a)     3,596       682,341  
Verisk Analytics Inc.     3,260       505,659  
Verizon Communications Inc.     95,458       5,170,005  
Vertex Pharmaceuticals Inc.(a)     6,218       1,393,019  
VF Corp.     7,854       565,488  
ViacomCBS Inc., Class B, NVS     12,210       300,488  
Visa Inc., Class A(b)     39,762       7,227,141  
VMware Inc., Class A(a)(b)     1,951       235,135  
Vornado Realty Trust     4,752       254,612  
Vulcan Materials Co.     3,165       380,623  
Walmart Inc.     33,602       3,618,263  
Walgreens Boots Alliance Inc.     17,993       823,360  
Walt Disney Co. (The)     42,618       5,014,008  
Waste Management Inc.     10,059       1,114,638  
Waters Corp.(a)     1,860       362,495  
Wayfair Inc., Class A(a)     1,498       94,689  
WEC Energy Group Inc.     8,169       754,244  
Wells Fargo & Co.     99,340       4,058,039  
Welltower Inc.     9,655       722,387  
Western Digital Corp.     6,969       387,198  
Western Union Co. (The)     13,514       302,578  
Westinghouse Air Brake Technologies Corp.     4,735       325,294  
Westrock Co.     7,491       249,076  
Weyerhaeuser Co.     18,024       468,264  
Whirlpool Corp.     2,269       290,114  
Williams Companies Inc. (The)     28,938       551,269  
Willis Towers Watson PLC     2,791       528,197  
Workday Inc., Class A(a)     3,701       641,198  
WR Berkley Corp.     6,959       467,227  
WW Grainger Inc.     966       268,104  
Wynn Resorts Ltd.     2,472       266,927  
Xcel Energy Inc.     12,546       781,867  
Xerox Holdings Corp.(a)     6,273       201,991  
Xilinx Inc.     6,113       510,374  
XPO Logistics Inc.(a)     2,033       150,381  
Xylem Inc./NY     4,643       359,090  
Yum! Brands Inc.     7,534       672,409  
Zebra Technologies Corp., Class A(a)     1,552       327,425  
Security   Shares     Value  
United States (continued)                
Zillow Group Inc., Class C, NVS(a)     3,894     $ 217,324  
Zimmer Biomet Holdings Inc.     4,751       646,849  
Zoetis Inc.     11,911       1,586,903  
              606,437,552  
Total Common Stocks — 99.3%                
(Cost: $932,942,897)             954,161,641  
                 
Preferred Stocks                
                 
Germany — 0.2%                
Henkel AG & Co. KGaA, Preference Shares, NVS     4,963       456,190  
Porsche Automobil Holding SE, Preference Shares, NVS     4,437       274,299  
Sartorius AG, Preference Shares, NVS     1,641       373,129  
Volkswagen AG, Preference Shares, NVS.     4,958       809,184  
              1,912,802  
Total Preferred Stocks — 0.2%                
(Cost: $2,132,412)             1,912,802  
                 
Rights                
                 
Spain — 0.0%                
ACS Actividades de Construccion y Servicios SA, (Expires 03/03/20)(a)     7,609       3,329  
Total Rights — 0.0%                
(Cost: $3,698)             3,329  
                 
Short-Term Investments                
                 
Money Market Funds — 1.2%                
BlackRock Cash Funds: Institutional, SL Agency Shares, 1.74%(e)(f)(g)     8,313,411       8,319,230  
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52%(e)(f)     3,528,000       3,528,000  
              11,847,230  
Total Short-Term Investments — 1.2%                
(Cost: $11,844,192)             11,847,230  
                 
Total Investments in Securities — 100.7%                
(Cost: $946,923,199)             967,925,002  
                 
Other Assets, Less Liabilities — (0.7)%             (6,690,108 )
                 
Net Assets — 100.0%           $ 961,234,894  

 

(a) Non-income producing security.

(b) All or a portion of this 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) This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933.

(e) Affiliate of the Fund.

(f) Annualized 7-day yield as of period-end.

(g) All or a portion of this security was purchased with cash collateral received from loaned securities.


 

S c h e d u l e   o f   I n v e s t m e n t s 19

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI World ETF
February 29, 2020

 

Affiliates

 

Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940Act, were as follows:

 

Affiliated Issuer   Shares
Held at
08/31/19
    Shares
Purchased
    Shares
Sold
    Shares
Held at
02/29/20
    Value at
02/29/20
    Income     Net
Realized
Gain (Loss)
(a)   Change in
Unrealized
Appreciation
(Depreciation)
 
BlackRock Cash Funds: Institutional, SL Agency Shares   7,820,010     493,401 (b)       8,313,411     $ 8,319,230     $ 32,044 (c)   $ 67     $ 1,595  
BlackRock Cash Funds: Treasury, SL Agency Shares   1,335,000     2,193,000 (b)       3,528,000       3,528,000       14,858              
BlackRock Inc.   1,811     925     (50 )   2,686       1,243,645       13,108       7,786       53,422  
                            $ 13,090,875     $ 60,010     $ 7,853     $ 55,017  

 

(a) Includes realized capital gain distributions from an affiliated fund, if any.

(b) Net of purchases and sales.

(c) Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

 

Futures Contracts

 

Description     Number of
Contracts
    Expiration
Date
  Notional
Amount
(000)
    Value/
Unrealized
Appreciation
(Depreciation)
 
Long Contracts                            
Euro STOXX 50 Index     15     03/20/20   $ 546     $ (60,262 )
FTSE 100 Index     5     03/20/20     417       (41,565 )
S&P 500 E-Mini Index     17     03/20/20     2,508       (214,998 )
TOPIX Index     2     03/12/20     278       (28,652 )
                        $ (345,477 )

 

Derivative Financial Instruments Categorized by Risk Exposure

 

As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

    Equity
Contracts
 
Liabilities — Derivative Financial Instruments      
Futures contracts      
Unrealized depreciation on futures contracts(a)   $ 345,477  

 

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

 

For the six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

    Equity
Contracts
 
Net Realized Gain (Loss) from:      
Futures contracts   $ 255,170  
         
Net Change in Unrealized Appreciation (Depreciation) on:        
Futures contracts   $ (336,907 )

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:      
Average notional value of contracts — long   $ 3,577,012  

 

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

 

Fair Value Measurements

 

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

 

20 2 0 2 0   i  S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI World ETF
February 29, 2020

 

Fair Value Measurements (continued)

 

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.

 

    Level 1     Level 2     Level 3     Total  
Investments                        
Assets                        
Common Stocks   $ 954,161,641     $     $     $ 954,161,641  
Preferred Stocks     1,912,802                   1,912,802  
Rights     3,329                   3,329  
Money Market Funds     11,847,230                   11,847,230  
    $ 967,925,002     $     $     $ 967,925,002  
Derivative financial instruments(a)                                
Liabilities                                
Futures Contracts   $ (345,477 )   $     $     $ (345,477 )

 

(a) Shown at the unrealized appreciation (depreciation) on the contracts.

 

See notes to financial statements.

 

S c h e d u l e   o f   I n v e s t m e n t s 21

 

 

 

 

Statements of Assets and Liabilities (unaudited) 

February 29, 2020

 

    iShares
MSCI
Frontier 100
ETF
    iShares
MSCI World
ETF
 
                 
ASSETS                
Investments in securities, at value (including securities on loan)(a):                
Unaffiliated(b)   $ 483,603,854     $ 954,834,127  
Affiliated(c)     6,115       13,090,875  
Cash           612  
Foreign currency, at value(d)     753,701       769,435  
Cash pledged:                
Futures contracts           154,001  
Foreign currency collateral pledged:                
Futures contracts(e)           99,201  
Receivables:                
Investments sold     6,259,091        
Securities lending income — Affiliated     19       5,248  
Capital shares sold           1,564,914  
Dividends     1,844,303       1,806,713  
Tax reclaims           200,249  
Total assets     492,467,083       972,525,375  
                 
LIABILITIES                
Bank overdraft     1,130,023        
Collateral on securities loaned, at value     2,349       8,315,484  
Payables:                
Investments purchased     4,436,262       2,706,178  
Variation margin on futures contracts           86,227  
Investment advisory fees     318,312       182,592  
Total liabilities     5,886,946       11,290,481  
                 
NET ASSETS   $ 486,580,137     $ 961,234,894  
                 
NET ASSETS CONSIST OF:                
Paid-in capital   $ 598,098,028     $ 943,791,806  
Accumulated earnings (loss)     (111,517,891 )     17,443,088  
NET ASSETS   $ 486,580,137     $ 961,234,894  
                 
Shares outstanding     17,200,000       10,700,000  
Net asset value   $ 28.29     $ 89.84  
Shares authorized     500 million       500 million  
Par value   $ 0.001     $ 0.001  
                 
(a) Securities loaned, at value   $ 2,237     $ 8,094,259  
(b) Investments, at cost — Unaffiliated   $ 420,502,614     $ 933,931,237  
(c) Investments, at cost — Affiliated   $ 6,111     $ 12,991,962  
(d) Foreign currency, at cost   $ 754,580     $ 779,141  
(e) Foreign currency collateral pledged, at cost   $     $ 99,429  

 

See notes to financial statements.

 

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Statements of Operations (unaudited) 

Six Months Ended February 29, 2020

 

   

iShares
MSCI
Frontier 100
ETF

   

iShares
MSCI World
ETF

 
                 
INVESTMENT INCOME                
Dividends — Unaffiliated   $ 3,394,828     $ 8,403,206  
Dividends — Affiliated     3,525       27,966  
Securities lending income — Affiliated — net     185       32,044  
Foreign taxes withheld     (400,660 )     (296,281 )
Total investment income     2,997,878       8,166,935  
                 
EXPENSES                
Investment advisory fees     1,957,592       988,645  
Commitment fees     3,634        
Interest expense     1,378        
Total expenses     1,962,604       988,645  
Net investment income     1,035,274       7,178,290  
                 
REALIZED AND UNREALIZED GAIN (LOSS)                
Net realized gain (loss) from:                
Investments — Unaffiliated(a)     (1,521,981 )     (2,921,727 )
Investments — Affiliated           67  
In-kind redemptions — Unaffiliated     76,133       6,245,818  
In-kind redemptions — Affiliated           7,786  
Futures contracts           255,170  
Foreign currency transactions     (260,895 )     16,544  
Net realized gain (loss)     (1,706,743 )     3,603,658  
Net change in unrealized appreciation (depreciation) on:                
Investments — Unaffiliated     (9,166,283 )     (18,110,574 )
Investments — Affiliated     1       55,017  
Futures contracts           (336,907 )
Foreign currency translations     13,357       (5,030 )
Net change in unrealized appreciation (depreciation)     (9,152,925 )     (18,397,494 )
Net realized and unrealized loss     (10,859,668 )     (14,793,836 )
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS   $ (9,824,394 )   $ (7,615,546 )
                 
(a) Net of foreign capital gain tax of   $ 13,900     $  

 

See notes to financial statements.

 

F i n a n c i a l   S t a t e m e n t s 23

 

 

 

 

Statements of Changes in Net Assets

 

    iShares
MSCI Frontier 100 ETF
    iShares
MSCI World ETF
 
    Six Months
Ended
02/29/20
(unaudited)
    Year Ended
08/31/19
    Six Months
Ended
02/29/20
(unaudited)
    Year Ended
08/31/19
 
                                 
INCREASE (DECREASE) IN NET ASSETS                                
                                 
OPERATIONS                                
Net investment income   $ 1,035,274     $ 18,179,111     $ 7,178,290     $ 13,549,947  
Net realized gain (loss)     (1,706,743 )     (20,321,660 )     3,603,658       52,961,213  
Net change in unrealized appreciation (depreciation)     (9,152,925 )     31,730,659       (18,397,494 )     (45,742,348 )
Net increase (decrease) in net assets resulting from operations     (9,824,394 )     29,588,110       (7,615,546 )     20,768,812  
                                 
DISTRIBUTIONS TO SHAREHOLDERS(a)                                
Decrease in net assets resulting from distributions to shareholders     (2,614,147 )     (19,147,709 )     (7,870,840 )     (14,268,219 )
                                 
CAPITAL SHARE TRANSACTIONS                                
Net increase (decrease) in net assets derived from capital share transactions     2,150,996       (37,018,194 )     330,261,822       73,716,261  
                                 
NET ASSETS                                
Total increase (decrease) in net assets     (10,287,545 )     (26,577,793 )     314,775,436       80,216,854  
Beginning of period     496,867,682       523,445,475       646,459,458       566,242,604  
End of period   $ 486,580,137     $ 496,867,682     $ 961,234,894     $ 646,459,458  

 

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

 

See notes to financial statements.

 

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Financial Highlights 

(For a share outstanding throughout each period)

 

    iShares MSCI Frontier 100 ETF  
    Six Months Ended
02/29/20
(unaudited)
    Year Ended
08/31/19
    Year Ended
08/31/18
    Year Ended
08/31/17
    Year Ended
08/31/16
    Year Ended
08/31/15
 
                                                             
Net asset value, beginning of period     $ 28.97       $ 28.29       $ 30.62       $ 24.20       $ 26.20       $ 37.79  
Net investment income(a)       0.06         1.03         0.87         0.72         0.76         0.77  
Net realized and unrealized gain (loss)(b)       (0.58 )       0.76         (1.99 )       6.00         (2.17 )       (8.78 )
Net increase (decrease) from investment operations       (0.52 )       1.79         (1.12 )       6.72         (1.41 )       (8.01 )
                                                             
Distributions(c)                                                            
From net investment income       (0.16 )       (1.11 )       (1.21 )       (0.30 )       (0.59 )       (0.76 )
From net realized gain                                               (2.82 )
Total distributions       (0.16 )       (1.11 )       (1.21 )       (0.30 )       (0.59 )       (3.58 )
                                                             
Net asset value, end of period     $ 28.29       $ 28.97       $ 28.29       $ 30.62       $ 24.20       $ 26.20  
                                                             
Total Return                                                            
Based on net asset value       (1.84 )%(d)       6.45 %       (3.92 )%       27.91 %       (5.45 )%       (21.70 )%
                                                             
Ratios to Average Net Assets                                                            
Total expenses       0.79 %(e)       0.79 %       0.81 %       0.80 %       0.79 %       0.79 %
Net investment income       0.42 %(e)       3.63 %       2.69 %       2.65 %       3.03 %       2.43 %
                                                             
Supplemental Data                                                            
Net assets, end of period (000)     $ 486,580       $ 496,868       $ 523,445       $ 627,626       $ 407,722       $ 502,993  
Portfolio turnover rate(f)       12 %(d)       33 %       35 %       32 %       20 %       47 %

 

(a) Based on average shares outstanding.

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

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

(d) Not annualized.

(e) Annualized.

(f) Portfolio turnover rate excludes in-kind transactions.

 

See notes to financial statements.

 

F i n a n c i a l   H i g h l i g h t s 25

 

 

 

 

Financial Highlights (continued) 

(For a share outstanding throughout each period)

 

    iShares MSCI World ETF  
    Six Months Ended
02/29/20
(unaudited)
    Year Ended
08/31/19
    Year Ended
08/31/18
    Year Ended
08/31/17
    Year Ended
08/31/16
    Year Ended
08/31/15
 
                                                             
Net asset value, beginning of period     $ 89.79       $ 91.33       $ 82.22       $ 72.15       $ 68.95       $ 73.36  
Net investment income(a)       0.84         1.96         1.84         1.74         1.62         1.64  
Net realized and unrealized gain (loss)(b)       0.13         (1.52 )       9.15         9.90         3.16         (4.49 )
Net increase (decrease) from investment operations       0.97         0.44         10.99         11.64         4.78         (2.85 )
                                                             
Distributions(c)                                                            
From net investment income       (0.92 )       (1.98 )       (1.88 )       (1.57 )       (1.58 )       (1.56 )
Total distributions       (0.92 )       (1.98 )       (1.88 )       (1.57 )       (1.58 )       (1.56 )
                                                             
Net asset value, end of period     $ 89.84       $ 89.79       $ 91.33       $ 82.22       $ 72.15       $ 68.95  
                                                             
Total Return                                                            
Based on net asset value       0.98 %(d)       0.61 %       13.46 %       16.29 %       7.05 %       (3.97 )%
                                                             
Ratios to Average Net Assets                                                            
Total expenses       0.24 %(e)       0.24 %       0.24 %       0.24 %       0.24 %       0.24 %
Net investment income       1.74 %(e)       2.24 %       2.09 %       2.25 %       2.34 %       2.25 %
                                                             
Supplemental Data                                                            
Net assets, end of period (000)     $ 961,235       $ 646,459       $ 566,243       $ 509,769       $ 288,603       $ 206,842  
Portfolio turnover rate(f)       2 %(d)       4 %       3 %       3 %       5 %       5 %

 

(a) Based on average shares outstanding.

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

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

(d) Not annualized.

(e) Annualized.

(f) Portfolio turnover rate excludes in-kind transactions.

 

See notes to financial statements.

 

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Notes to Financial Statements (unaudited) 

 

1. ORGANIZATION

 

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

 

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

 
iShares ETF Diversification
Classification
MSCI Frontier 100 Diversified
MSCI World Diversified

 

2. SIGNIFICANT ACCOUNTING POLICIES

  

The following significant accounting policies are consistently followed by each Fund in the preparation of its financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies.

 

Investment Transactions and Income Recognition: Investment transactions are accounted for on trade date. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recognized on the ex-dividend date, net of any foreign taxes withheld at source. Any taxes withheld that are reclaimable from foreign tax authorities are reflected in tax reclaims receivable. Distributions received by the Funds may include a return of capital that is estimated by management. Such amounts are recorded as a reduction of the cost of investments or reclassified to capital gains. Upon notification from issuers, some of the dividend income received from a real estate investment trust may be re-designated as a return of capital or capital gain. Non-cash dividends, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Interest income is accrued daily. 

 

Foreign Currency Translation: The accounting records of the Funds are maintained in U.S. dollars. Foreign currencies, as well as investment securities and other assets and liabilities denominated in non-U.S. currencies are translated to U.S. dollars using prevailing market rates as quoted by one or more data service providers. Purchases and sales of investments, income receipts and expense payments are translated into U.S. dollars on the respective dates of such transactions.

 

Each Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of investments. Such fluctuations are reflected by the Funds as a component of net realized and unrealized gain (loss) from investments for financial reporting purposes. Each Fund reports realized currency gain (loss) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for U.S. federal income tax purposes.

 

Foreign Taxes: The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which each Fund invests. These foreign taxes, if any, are paid by each Fund and are reflected in its statement of operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of February 29, 2020, if any, are disclosed in the statement of assets and liabilities.

 

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

 

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

 

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

 

3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

 

Investment Valuation Policies: Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date should the reporting period end on a day that the Fund’s listing exchange is not open. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. A fund determines the fair value of its financial instruments using various independent dealers or pricing services under policies approved by the

 

N o t e s   t o   F i n a n c i a l   S t a t e m e n t s 27

 

 

 

 

Notes to Financial Statements (unaudited) (continued)

 

Board of Directors of the Company (the “Board”). The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.

 

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

Equity investments traded on a recognized securities exchange are valued at that day’s last traded price or official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price.
Investments in open-end U.S. mutual funds (including money market funds) are valued at that day’s published net asset value (“NAV”).
Futures contract notional values are determined based on that day’s last reported settlement price on the exchange where the contract is traded.

 

If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of an investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with policies approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee include market approach, income approach and the cost approach. Valuation techniques used under these approaches take into consideration inputs that include but are not limited to (i) attributes specific to the investment; (ii) the principal market for the investment; (iii) the customary participants in the principal market for the investment; (iv) data assumptions by market participants for the investment, if reasonably available; (v) quoted prices for similar investments in active markets; and (vi) other inputs, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or default rates.

 

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.

 

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

 

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

Level 1– Unadjusted price quotations in active markets for identical assets or liabilities;
Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; and
Level 3 – Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, (including the Global Valuation Committee’s assumptions used in determining the fair value of financial instruments).

 

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgement exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The fair value hierarchy for each Fund’s investments is included in its schedule of investments. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

 

4. SECURITIES AND OTHER INVESTMENTS

 

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

 

As of February 29, 2020, any securities on loan were collateralized by cash and/or U.S. government obligations. Cash collateral received was invested in money market funds managed by BlackRock Fund Advisors (“BFA”), the Funds’ investment adviser, or its affiliates and is disclosed in the schedules of investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan for each Fund, if any, are also disclosed in its schedule of investments. The market value of any securities on loan as of February 29, 2020 and the value of the related cash collateral are disclosed in the statements of assets and liabilities. 

 

Securities lending transactions are entered into by a fund under Master Securities Lending Agreements (each, an “MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. The value

 

28 2 0 2 0   i  S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

 

Notes to Financial Statements (unaudited) (continued)

 

of the collateral is typically greater than the market value of the securities loaned, leaving the lender with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, absent an event of default, the borrower can resell or re-pledge the loaned securities, and the fund can reinvest cash collateral received in connection with loaned securities. 

 

The following table is a summary of the securities lending agreements by counterparty which are subject to offset under an MSLA as of February 29, 2020:

 

iShares ETF and Counterparty   Market Value of
Securities on Loan
    Cash Collateral
Received
(a)   Non-Cash Collateral
Received
    Net Amount  
MSCI Frontier 100                        
Morgan Stanley & Co. LLC   $ 2,237     $ 2,237     $     $  
MSCI World                                
Barclays Capital Inc.   $ 3,825     $ 3,825     $     $  
BNP Paribas Prime Brokerage International Ltd.     563,888       563,888              
BofA Securities, Inc.     169,582       169,582              
Citigroup Global Markets Inc.     563,661       563,661              
Credit Suisse AG Dublin Branch     2,467       2,417             (50 )(b)
Credit Suisse Securities (USA) LLC     138,087       138,087              
Goldman Sachs & Co.     190,843       190,843              
HSBC Bank PLC     38,885       38,885              
JPMorgan Securities LLC     211,801       211,801              
Morgan Stanley & Co. LLC     368,353       368,353              
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending)     5,129       5,129              
Scotia Capital (USA) Inc.     26,813       26,813              
SG Americas Securities LLC     4,934,073       4,934,073              
TD Prime Services LLC     193,917       193,917              
UBS Securities LLC     302,812       302,812              
Wells Fargo Bank, National Association     346,494       346,494              
Wells Fargo Securities LLC     33,629       33,629              
    $ 8,094,259     $ 8,094,209     $     $ (50 )

 

(a) Collateral received in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by each Fund is disclosed in the Fund’s statement of assets and liabilities.
(b) 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 a counterparty.

 

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

 

5. DERIVATIVE FINANCIAL INSTRUMENTS

 

Futures Contracts: Each Fund’s use of futures contracts is generally limited to cash equitization. This involves the use of available cash to invest in index futures contracts in order to gain exposure to the equity markets represented in or by the Fund’s underlying index and is intended to allow the Fund to better track its underlying index. Futures contracts are standardized, exchange-traded agreements to buy or sell a specific quantity of an underlying instrument at a set price on a future date. Depending on the terms of a contract, a futures contract is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date. 

 

Upon entering into a futures contract, a fund is required to pledge to the executing broker which holds segregated from its own assets, an amount of cash, U.S. government securities or other high-quality debt and equity securities equal to the minimum initial margin requirements of the exchange on which the contract is traded. Securities deposited as initial margin, if any, are designated in the schedule of investments and cash deposited, if any, is shown as cash pledged for futures contracts in the statement of assets and liabilities. 

 

Pursuant to the contract, a fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation or depreciation and, if any, shown as variation margin receivable or payable on futures contracts in the statement of assets and liabilities. When the contract is closed, a realized gain or loss is recorded in the statement of operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. Losses may arise if the notional value of a futures contract decreases due to an unfavorable change in the market rates or values of the underlying instrument during the term of the contract or if the counterparty does not perform under the contract. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and the assets underlying such contracts.

 

N o t e s   t o   F i n a n c i a l   S t a t e m e n t s 29

 

 

 

 

Notes to Financial Statements (unaudited) (continued)

 

6. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

 

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

 

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

 

iShares ETF   Investment Advisory Fee  
MSCI Frontier 100     0.79 %
MSCI World     0.24  

 

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

 

Securities Lending: The U.S. Securities and Exchange Commission (the “SEC”) has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan in a money market fund managed by BFA, or its affiliates, however, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees each Fund bears to an annual rate of 0.04% (the “collateral investment fees”). Securities lending income is equal to the total of income earned from the reinvestment of cash collateral (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. Each Fund retains a portion of securities lending income and remits the remaining portion to BTC as compensation for its services as securities lending agent. 

 

Pursuant to the current securities lending agreement, each Fund retains 82% of securities lending income (which excludes collateral investment fees) and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees. 

 

In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across all 1940 Act iShares exchange-traded funds (the “iShares ETF Complex”) in that calendar year exceeds a specified threshold, each Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year 85% of securities lending income (which excludes collateral investment fees), and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

 

The share of securities lending income earned by each Fund is shown as securities lending income – affiliated – net in its statement of operations. For the six months ended February 29, 2020, the Funds paid BTC the following amounts for securities lending agent services:

 

iShares ETF   Fees Paid
to BTC
 
MSCI Frontier 100   $ 45  
MSCI World     8,757  

  

Officers and Directors: Certain officers and/or directors of the Company are officers and/or directors of BlackRock or its affiliates. 

 

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

 

For the six months ended February 29, 2020, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:

 

iShares ETF   Purchases     Sales     Net Realized
Gain (Loss)
 
MSCI World   $ 5,221,798     $ 3,603,684     $ (394,601 )

 

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

 

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

 

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Notes to Financial Statements (unaudited) (continued)

 

7. PURCHASES AND SALES

 

For the six months ended February 29, 2020, purchases and sales of investments, excluding in-kind transactions and short-term investments, were as follows:

 

iShares ETF   Purchases     Sales  
MSCI Frontier 100   $ 60,953,505     $ 63,857,795  
MSCI World     31,131,101       18,769,904  

 

For the six months ended February 29, 2020, in-kind transactions were as follows:

 

    In-kind     In-kind  
iShares ETF   Purchases     Sales  
MSCI Frontier 100   $ 270,117     $ 317,884  
MSCI World     334,445,509       18,952,678  

 

8. INCOME TAX INFORMATION

 

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

 

Management has analyzed tax laws and regulations and their application to the Funds as of February 29, 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.

 

As of August 31, 2019, the Funds had non-expiring capital loss carryforwards available to offset future realized capital gains as follows:

 

iShares ETF   Non-Expiring  
MSCI Frontier 100   $ 147,337,814  
MSCI World     6,530,551  

  

A fund may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” Such fund may elect to mark-to-market annually the shares of each passive foreign investment company and would be required to distribute to shareholders any such marked-to-market gains.

 

As of February 29, 2020, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:

 

iShares ETF   Tax Cost     Gross Unrealized
Appreciation
    Gross Unrealized
Depreciation
    Net Unrealized
Appreciation
(Depreciation)
 
MSCI Frontier 100   $ 445,496,412     $ 102,201,142     $ (64,087,585 )   $ 38,113,557  
MSCI World     949,847,073       94,993,325       (77,260,873 )     17,732,452  

 

9. LINE OF CREDIT

 

The iShares MSCI Frontier 100 ETF, along with certain other iShares funds, is a party to a $300 million credit agreement with State Street Bank and Trust Company, which expires on October 21, 2020. The line of credit may be used for temporary or emergency purposes, including redemptions, settlement of trades and rebalancing of portfolio holdings. The credit agreement has the following terms: a commitment fee of 0.20% per annum on the unused portion of the credit agreement and interest at a rate equal to the higher of (a) the one-month LIBOR (not less than zero) plus 1.00% per annum or (b) the U.S. Federal Funds rate (not less than zero) plus 1.00% per annum on amounts borrowed. The commitment fee is allocated to each fund participating in the credit agreement based on each fund’s pro-rata share of the aggregate average daily value of assets invested in local securities of certain foreign markets.

 

For the six months ended February 29, 2020, the maximum amount borrowed, the average daily borrowing and the weighted average interest rate, if any, under the credit agreement were as follows:

 

    Maximum           Weighted  
    Amount     Average     Average  
iShares ETF   Borrowed     Borrowing     Interest Rates  
MSCI Frontier 100   $ 3,100,000     $ 85,165       2.50 %

 

N o t e s   t o   F i n a n c i a l   S t a t e m e n t s 31

 

 

 

 

Notes to Financial Statements (unaudited) (continued) 

 

10. PRINCIPAL RISKS

 

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

 

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

 

Market Risk: Market risk arises mainly from uncertainty about future values of financial instruments influenced by price, currency and interest rate movements. It represents the potential loss a fund may suffer through holding market positions in the face of market movements. A fund is exposed to market risk by its investment in equity, fixed income and/or financial derivative instruments or by its investment in underlying funds. The fair value of securities held by a fund may decline due to general market conditions, economic trends or events that are not specifically related to the issuers of the securities including local, regional or global political, social or economic instability or to factors that affect a particular industry or group of industries. 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. The extent of a fund’s exposure to market risk is the market value of the investments held as shown in the fund’s schedule of investments.

 

Investing in the securities of non-U.S. issuers involves certain considerations and risks not typically associated with securities of U.S. issuers. Such risks include, but are not limited to: differences in accounting, auditing and financial reporting standards; more substantial governmental involvement in the economy; higher inflation rates, greater social, economic and political uncertainties; possible nationalization or expropriation of assets; less availability of public information about issuers; imposition of withholding or other taxes; higher transaction and custody costs and delays in settlement procedures; and lower level of regulation of the securities markets and issuers. Non-U.S. securities may be less liquid, more difficult to value, and have greater price volatility due to exchange rate fluctuations. These and other risks are heightened for investments in issuers from countries with less developed capital markets.

 

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 impact of the pandemic may be short term or may last for an extended period of time.

 

Credit Risk: Credit risk is the risk that an issuer or guarantor of debt instruments or the counterparty to a financial transaction, including derivatives contracts, repurchase agreements or loans of portfolio securities, is unable or unwilling to make timely interest and/or principal payments or to otherwise honor its obligations. BFA and its affiliates manage counterparty credit risk by entering into transactions only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose a fund to issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of a fund’s exposure to credit and counterparty risks with respect to those financial assets is approximated by their value recorded in its statement of assets and liabilities. 

 

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

 

When a fund concentrates its investments in issuers located in a single country or a limited number of countries, it assumes the risk that economic, regulatory, political and social conditions in that country or those countries may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio.

 

When a fund concentrates its investments in securities within a single or limited number of market sectors, it assumes the risk that economic, regulatory, political and social conditions affecting such sectors may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio. 

 

11. CAPITAL SHARE TRANSACTIONS

  

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

 

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Notes to Financial Statements (unaudited) (continued)

 

Transactions in capital shares were as follows:

 

    Six Months Ended
02/29/20
    Year Ended
08/31/19
 
iShares ETF   Shares     Amount     Shares     Amount  
MSCI Frontier 100                            
Shares sold   400,000     $ 12,178,051     450,000     $ 13,475,673  
Shares redeemed   (350,000 )     (10,027,055 )   (1,800,000 )     (50,493,867 )
Net increase(decrease)   50,000     $ 2,150,996     (1,350,000 )   $ (37,018,194 )
MSCI World                            
Shares sold   3,700,000     $ 349,987,081     3,800,000     $ 312,550,041  
Shares redeemed   (200,000 )     (19,725,259 )   (2,800,000 )     (238,833,780 )
Net increase   3,500,000     $ 330,261,822     1,000,000     $ 73,716,261  

 

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

 

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

 

12. LEGAL PROCEEDINGS

 

On June 16, 2016, investors in certain iShares funds (iShares Core S&P Small-Cap ETF, iShares Russell 1000 Growth ETF, iShares Core S&P 500 ETF, iShares Russell Mid-Cap Growth ETF, iShares Russell Mid-Cap ETF, iShares Russell Mid-Cap Value ETF, iShares Select Dividend ETF, iShares Morningstar Mid-Cap ETF, iShares Morningstar Large-Cap ETF, iShares U.S. Aerospace & Defense ETF and iShares Preferred and Income Securities ETF) filed a class action lawsuit against iShares Trust, BlackRock, Inc. and certain of its advisory affiliates, and certain directors/trustees and officers of the Funds (collectively, “Defendants”) in California State Court. The lawsuit alleges the Defendants violated federal securities laws by failing to adequately disclose in the prospectuses issued by the funds noted above the risks of using stop-loss orders in the event of a ‘flash crash’, such as the one that occurred on May 6, 2010. On September 18, 2017, the court issued a Statement of Decision holding that the Plaintiffs lack standing to assert their claims. On October 11, 2017, the court entered final judgment dismissing all of the Plaintiffs’ claims with prejudice. In an opinion dated January 23, 2020, the California Court of Appeal affirmed the dismissal of Plaintiffs’ claims. On March 3, 2020, plaintiffs filed a petition for review by the California Supreme Court. 

 

13. SUBSEQUENT EVENTS

 

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

 

N o t e s   t o   F i n a n c i a l   S t a t e m e n t s 33

 

 

 

 

Statement Regarding Liquidity Risk Management Program 

 

The Securities and Exchange Commission adopted Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”) to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders.

 

The Board of Directors (the “Board”) of iShares MSCI Frontier 100 ETF and iShares MSCI World ETF met on December 3, 2019 (the “Meeting”) to review the liquidity risk management program (the “Program”) applicable to the iShares Funds (each, a “Fund”) pursuant to the Liquidity Rule. The Board has appointed BlackRock Fund Advisors (“BlackRock”), the investment adviser to the Funds, as the program administrator for each Fund’s Program, as applicable. BlackRock has delegated oversight of the Program to the 40 Act Liquidity Risk Management Committee (the “Committee”). At the Meeting, the Committee, on behalf of BlackRock, provided the Board with a report that addressed the operation of the Program and assessed its adequacy and effectiveness of implementation, including the operation of each Fund’s Highly Liquid Investment Minimum (“HLIM”) where applicable, and any material changes to the Program (the “Report”). The Report covered the period from December 1, 2018 through September 30, 2019 (the “Program Reporting Period”). 

 

The Report described the Program’s liquidity classification methodology for categorizing a Fund’s investments (including derivative transactions) into one of four liquidity buckets. It also described BlackRock’s methodology in establishing a Fund’s HLIM and noted that the Committee reviews and ratifies the HLIM assigned to each Fund no less frequently than annually. 

 

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

 

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

 

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

 

c) Holdings of cash and cash equivalents, as well as borrowing arrangements. The Committee considered that ETFs generally do not hold more than de minimus amounts of cash. Funds may borrow for temporary or emergency purposes, including to meet payments due from redemptions or to facilitate the settlement of securities or other transactions.

 

d) The relationship between an ETF’s portfolio liquidity and the way in which, and the prices and spreads at which, ETF shares trade, including the efficiency of the arbitrage function and the level of active participation by market participants, including authorized participants. The Committee monitored the prevailing bid/ask spread and the ETF price premium (or discount) to NAV for all ETFs and reviewed any persistent deviations from long-term averages.

 

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

 

There were no material changes to the Program during the Program Reporting Period. The Report provided to the Board stated that the Committee concluded that based on the operation of the functions, as described in the Report, the Program is operating as intended and is effective in implementing the requirements of the Liquidity Rule.

 

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Supplemental Information (unaudited)

 

Section 19(a) Notices 

 

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

 

    Total Cumulative Distributions
for the Fiscal Year-to-Date
  % Breakdown of the Total Cumulative
Distributions for the Fiscal Year-to-Date
 
iShares ETF   Net
Investment
Income
  Net Realized
Capital Gains
  Return of
Capital
  Total Per
Share
  Net
Investment
Income
  Net Realized
Capital Gains
    Return of
Capital
    Total Per
Share
 
MSCI World(a)   $ 0.818887   $   $ 0.096327   $ 0.915214     89%   %   11 %   100 %

  

(a) The Fund estimates that it has distributed more than its net investment income and net realized capital gains; therefore, a portion of the distribution may be a return of capital. A return of capital may occur, for example, when some or all of the shareholder’s investment in the Fund is returned to the shareholder. A return of capital does not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”. When distributions exceed total return performance, the difference will incrementally reduce the Fund’s net asset value per share.

 

S u p p l e m e n t a l   I n f o r m a t i o n 35

 

 

 

 

General Information 

 

Electronic Delivery

 

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

 

To enroll in electronic delivery:

 

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

 

Householding 

 

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

 

Availability of Quarterly Schedule of Investments 

 

The iShares Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT, and for reporting periods ended prior to March 31, 2019, filed such information on Form N-Q. The iShares Funds’ Forms N-Q are available on the SEC’s website at sec.gov. The iShares Funds also disclose their complete schedule of portfolio holdings on a daily basis on the iShares website at iShares.com.

 

Availability of Proxy Voting Policies and Proxy Voting Records 

 

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

 

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Glossary of Terms Used in this Report 

 

Portfolio Abbreviations- Equity

 

ADR American Depositary Receipt
   
GDR Global Depositary Receipt
   
NVS Non-Voting Shares
   
SDR Swedish Depositary Receipt

 

G l o s s a r y   o f   T e r m s   U s e d   i n   t h i s   R e p o r t 37

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Want to know more? 

iShares.com   |   1-800-474-2737 

 

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

 

Investing involves risk, including possible loss of principal. 

 

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

 

The iShares Funds are not sponsored, endorsed, issued, sold or promoted by MSCI Inc., nor does this company make any representation regarding the advisability of investing in the iShares Funds. BlackRock is not affiliated with the company listed above.

 

©2020 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.

 

iS-SAR-811-0220

 

   

 

 

 

(LOGO) FEBRUARY 29, 2020

 

 

   
  2020 Semi-Annual Report
(Unaudited)
   

 

iShares, Inc.

 

iShares MSCI Global Agriculture Producers ETF | VEGI | NYSE Arca
iShares MSCI Global Energy Producers ETF | FILL | NYSE Arca
iShares MSCI Global Gold Miners ETF | RING | NASDAQ
iShares MSCI Global Metals & Mining Producers ETF | PICK | Cboe BZX
iShares MSCI Global Silver and Metals Miners ETF | SLVP | Cboe BZX

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

You may elect to receive all future reports in paper free of charge. If you hold accounts through a financial intermediary, you can follow the instructions included with this disclosure, if applicable, or contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. Please note that not all financial intermediaries may offer this service. Your election to receive reports in paper will apply to all funds held with your financial intermediary.

 

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive electronic delivery of shareholder reports and other communications by contacting your financial intermediary. Please note that not all financial intermediaries may offer this service.

 

 

 

 

 

 

Fund Summary as of February 29, 2020 iShares® MSCI Global Agriculture Producers ETF

 

Investment Objective

 

The iShares MSCI Global Agriculture Producers ETF (the “Fund”) seeks to track the investment results of an index composed of global equities of companies primarily engaged in the business of agriculture, as represented by the MSCI ACWI Select Agriculture Producers Investable Market Index (the "Index"). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

 

Performance

 

                Average Annual Total Returns       Cumulative Total Returns
                                Since                       Since  
        6 Months       1 Year       5 Years       Inception       1 Year       5 Years       Inception  
Fund NAV       (4.37 )%     (8.34 )%     0.50 %     2.17 %     (8.34 )%     2.51 %     18.99 %
Fund Market       (4.09 )     (8.22 )     0.55       2.15       (8.22 )     2.80       18.77  
Index       (4.34 )     (8.27 )     0.48       2.23       (8.27 )     2.43       19.49  

 

The inception date of the Fund was 1/31/12. The first day of secondary market trading was 2/2/12.

 

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 8 for more information.

 

Expense Example

 

Actual     Hypothetical 5% Return        
Beginning     Ending     Expenses     Beginning     Ending     Expenses     Annualized  
Account Value     Account Value     Paid During     Account Value     Account Value     Paid During     Expense  
(09/01/19)   (02/29/20)   the Period (a)   (09/01/19)   (02/29/20)   the Period (a)   Ratio  
$ 1,000.00     $ 956.30     $ 1.90     $ 1,000.00     $ 1,022.90     $ 1.96     0.39 %

 

(a) Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 8 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR
Sector   Percent of
Total Investments
(a)
Fertilizers & Agricultural Chemicals   32.9 %
Agricultural & Farm Machinery   26.4  
Agricultural Products   20.9  
Packaged Foods & Meats   19.8  
TEN LARGEST GEOGRAPHIC ALLOCATION  
Country/Geographic Region   Percent of
Total Investments
(a)
United States   47.8 %
Norway   7.7  
Canada   7.5  
Japan   6.8  
China   3.5  
Hong Kong   3.3  
Italy   2.9  
Malaysia   2.8  
India   2.6  
Singapore   2.3  


 

(a) Excludes money market funds.

 

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Fund Summary as of February 29, 2020 iShares® MSCI Global Energy Producers ETF

 

Investment Objective

 

The iShares MSCI Global Energy Producers ETF (the “Fund”) seeks to track the investment results of an index composed of global equities of companies primarily engaged in the business of energy exploration and production, as represented by the MSCI ACWI Select Energy Producers Investable Market Index (the "Index"). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

 

Performance

 

            Average Annual Total Returns     Cumulative Total Returns
                        Since                 Since  
      6 Months     1 Year     5 Years     Inception     1 Year     5 Years     Inception  
Fund NAV     (15.40 )%   (25.33 )%   (4.18 )%   (3.38 )%   (25.33) %   (19.20) %   (24.27 )%
Fund Market     (14.50 )   (24.70 )   (4.12 )   (3.28 )   (24.70 )   (18.96 )   (23.62 )
Index     (15.51 )   (25.53 )   (4.45 )   (3.57 )   (25.53 )   (20.36 )   (25.44 )

 

The inception date of the Fund was 1/31/12. The first day of secondary market trading was 2/2/12.

 

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 8 for more information.

 

Expense Example

 

Actual     Hypothetical 5% Return        
Beginning     Ending     Expenses     Beginning     Ending     Expenses     Annualized  
Account Value     Account Value     Paid During     Account Value     Account Value     Paid During     Expense  
(09/01/19)   (02/29/20)   the Period (a)   (09/01/19)   (02/29/20)   the Period (a)   Ratio  
$ 1,000.00     $ 846.00     $ 1.79     $ 1,000.00     $ 1,022.90     $ 1.96     0.39 %

 

(a) Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 8 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR
Sector   Percent of
Total Investments
(a)
Integrated Oil & Gas   63.5 %
Oil & Gas Exploration & Production   23.5  
Oil & Gas Refining & Marketing   11.3  
Coal & Consumable Fuels   1.7  
TEN LARGEST GEOGRAPHIC ALLOCATION
Country/Geographic Region   Percent of
Total Investments
(a)
United States   43.2 %
United Kingdom   16.6  
Canada   6.7  
France   6.1  
Russia   4.7  
India   4.0  
Brazil   2.8  
China   2.7  
Australia   2.1  
Italy   1.9  


 

(a) Excludes money market funds.

 

 

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Fund Summary as of February 29, 2020 iShares® MSCI Global Gold Miners ETF

 

Investment Objective

 

The iShares MSCI Global Gold Miners ETF (the “Fund”) seeks to track the investment results of an index composed of global equities of companies primarily engaged in the business of gold mining, as represented by the MSCI ACWI Select Gold Miners Investable Market Index (the "Index"). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

 

Performance

 

            Average Annual Total Returns     Cumulative Total Returns
                        Since                 Since  
      6 Months     1 Year     5 Years     Inception     1 Year     5 Years     Inception  
Fund NAV     (8.36 )%   27.00 %   5.60 %   (8.83 )%   27.00 %   31.31 %   (52.61 )%
Fund Market     (8.86 )   26.38     5.44     (8.89 )   26.38     30.30     (52.87 )
Index     (8.24 )   27.11     5.85     (8.65 )   27.11     32.89     (51.88 )

 

The inception date of the Fund was 1/31/12. The first day of secondary market trading was 2/2/12.

 

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 8 for more information.

 

Expense Example

 

Actual     Hypothetical 5% Return        
Beginning     Ending     Expenses     Beginning     Ending     Expenses     Annualized  
Account Value     Account Value     Paid During     Account Value     Account Value     Paid During     Expense  
(09/01/19)   (02/29/20)   the Period (a)   (09/01/19)   (02/29/20)   the Period (a)   Ratio  
$ 1,000.00     $ 916.40     $ 1.86     $ 1,000.00     $ 1,022.90     $ 1.96     0.39 %

 

(a) Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 8 for more information.

 

Portfolio Information

 

GEOGRAPHIC ALLOCATION
Country/Geographic Region   Percent of
Total Investments
(a)
Canada   50.9 %
United States   22.0  
South Africa   12.5  
Australia   8.7  
Russia   2.1  
Peru   1.6  
United Kingdom   1.5  
Turkey   0.7  
TEN LARGEST HOLDINGS
Security   Percent of
Total Investments
(a)
Newmont Corp.   20.9 %
Barrick Gold Corp.   19.4  
Newcrest Mining Ltd.   6.5  
Agnico Eagle Mines Ltd.   4.7  
AngloGold Ashanti Ltd.   4.4  
Kinross Gold Corp.   4.3  
Kirkland Lake Gold Ltd.   4.2  
Gold Fields Ltd.   3.4  
Sibanye Stillwater Ltd.   3.2  
Yamana Gold Inc.   2.7  


 

(a) Excludes money market funds.

 

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Fund Summary as of February 29, 2020 iShares® MSCI Global Metals & Mining Producers ETF

 

Investment Objective

 

The iShares MSCI Global Metals & Mining Producers ETF (the “Fund”) seeks to track the investment results of an index composed of global equities of companies primarily engaged in mining, extraction or production of diversified metals, excluding gold and silver, as represented by the MSCI ACWI Select Metals & Mining Producers ex Gold & Silver Investable Market Index (the "Index"). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

 

Performance

 

            Average Annual Total Returns     Cumulative Total Returns
                        Since                 Since  
      6 Months     1 Year     5 Years     Inception     1 Year     5 Years     Inception  
Fund NAV     (5.67 )%   (18.83 )%   (1.25 )%   (5.09 )%   (18.83 )%   (6.11 )%   (34.45 )%
Fund Market     (5.77 )   (18.81 )   (1.42 )   (5.13 )   (18.81 )   (6.88 )   (34.64 )
Index     (5.58 )   (18.74 )   (1.04 )   (4.96 )   (18.74 )   (5.10 )   (33.73 )

 

The inception date of the Fund was 1/31/12. The first day of secondary market trading was 2/2/12.

 

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 8 for more information.

 

Expense Example

 

Actual     Hypothetical 5% Return        
Beginning     Ending     Expenses     Beginning     Ending     Expenses     Annualized  
Account Value     Account Value     Paid During     Account Value     Account Value     Paid During     Expense  
(09/01/19)   (02/29/20)   the Period (a)   (09/01/19)   (02/29/20)   the Period (a)   Ratio  
$ 1,000.00     $ 943.30     $ 1.88     $ 1,000.00     $ 1,022.90     $ 1.96     0.39 %

 

(a) Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 8 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR
Sector   Percent of
Total Investments
(a)
Diversified Metals & Mining   53.4 %
Steel   32.9  
Copper   6.9  
Aluminum   4.0  
Precious Metals & Minerals   2.8  
TEN LARGEST GEOGRAPHIC ALLOCATION
Country/Geographic Region   Percent of
Total Investments
(a)
Australia   26.8 %
United Kingdom   18.9  
United States   10.3  
Brazil   6.7  
Japan   6.5  
Russia   4.8  
Canada   3.2  
South Korea   3.1  
China   2.6  
South Africa   2.5  


 

(a) Excludes money market funds.

 

 

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Fund Summary as of February 29, 2020 iShares® MSCI Global Silver and Metals Miners ETF

 

Investment Objective

 

The iShares MSCI Global Silver and Metals Miners ETF (the “Fund”) (formerly the iShares MSCI Global Silver Miners ETF) seeks to track the investment results of an index composed of global equities of companies primarily engaged in the business of silver exploration or metals mining, as represented by the MSCI ACWI Select Silver Miners Investable Market Index (the "Index"). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

 

Performance

 

            Average Annual Total Returns     Cumulative Total Returns
                        Since                 Since  
      6 Months     1 Year     5 Years     Inception     1 Year     5 Years     Inception  
Fund NAV     (13.29 )%(a)   2.84%     1.21 %   (10.14 )%   2.84 %   6.21 %   (57.83 )%
Fund Market     (13.26 )   2.73     1.21     (10.11 )   2.73     6.21     (57.74 )
Index     (13.56 )   2.33     1.09     (10.17 )   2.33     5.58     (57.98 )

 

(a) The NAV total return presented in the table for the six-months period differs from the same period return disclosed in the financial highlights. The total return in the financial highlights is calculated in the same manner but differs due to certain adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

 

The inception date of the Fund was 1/31/12. The first day of secondary market trading was 2/2/12.

 

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 8 for more information.

 

Expense Example

 

Actual     Hypothetical 5% Return        
Beginning     Ending     Expenses     Beginning     Ending     Expenses     Annualized  
Account Value     Account Value     Paid During     Account Value     Account Value     Paid During     Expense  
(09/01/19)   (02/29/20)   the Period (a)   (09/01/19)   (02/29/20)   the Period (a)   Ratio  
$ 1,000.00     $ 867.10     $ 1.81     $ 1,000.00     $ 1,022.90     $ 1.96     0.39 %

 

(a) Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 8 for more information.

 

Portfolio Information

 

GEOGRAPHIC ALLOCATION
Country/Geographic Region   Percent of
Total Investments
(a)
Canada   74.2 %
United States   11.3  
South Africa   4.6  
Mexico   3.3  
Japan   2.7  
United Kingdom   2.6  
Other (each representing less than 1%)   1.3  
TEN LARGEST HOLDINGS
Security   Percent of
Total Investments
(a)
Wheaton Precious Metals Corp.   23.2 %
Pan American Silver Corp.   11.1  
Yamana Gold Inc.   9.3  
Harmony Gold Mining Co. Ltd.   4.6  
Newmont Corp.   4.6  
Eldorado Gold Corp.   4.3  
SSR Mining Inc.   4.3  
Hecla Mining Co.   3.9  
First Majestic Silver Corp.   3.5  
Industrias Penoles SAB de CV   3.3  


 

(a) Excludes money market funds.

 

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About Fund Performance

 

Past performance is no guarantee of future results. Financial markets have experienced extreme volatility and trading in many instruments has been disrupted. These circumstances may continue for an extended period of time, and may continue to affect adversely the value and liquidity of the fund's investments. As a result, current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at iShares.com. Performance results assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. The investment return and principal value of shares will vary with changes in market conditions. Shares may be worth more or less than their original cost when they are redeemed or sold in the market. Performance for certain funds may reflect a waiver of a portion of investment advisory fees. Without such a waiver, performance would have been lower.

 

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

 

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

 

Shareholder Expenses

 

As a shareholder of your Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares and (2) ongoing costs, including management fees and other fund expenses. The expense example, which is based on an investment of $1,000 invested at the beginning of the period (or from the commencement of operations if less than 6 months) and held through the end of the period, is intended to help you understand your ongoing costs (in dollars and cents) of investing in your Fund and to compare these costs with the ongoing costs of investing in other funds.

 

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

 

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

 

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

 

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Schedule of Investments (unaudited) iShares® MSCI Global Agriculture Producers ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
Common Stocks            
             
Argentina — 0.2%            
Adecoagro SA(a)   7,771 $ 50,822  
             
Australia — 1.6%            
Australian Agricultural Co. Ltd.(a)   24,149     17,127  
Costa Group Holdings Ltd.   26,790     51,128  
Elders Ltd.   10,488     52,339  
GrainCorp Ltd., Class A(a)   16,264     81,792  
Inghams Group Ltd.   22,648     50,524  
Nufarm Ltd./Australia(a)   21,451     70,674  
Select Harvests Ltd.   7,201     29,250  
Tassal Group Ltd.   14,875     36,924  
          389,758  
Brazil — 0.5%            
Sao Martinho SA   13,300     78,091  
SLC Agricola SA   6,487     29,001  
          107,092  
Canada — 7.5%            
Ag Growth International Inc.   1,425     41,051  
Nutrien Ltd.   42,845     1,731,546  
Rogers Sugar Inc.   7,866     28,948  
Village Farms International Inc.(a)(b)   2,945     11,847  
          1,813,392  
China — 3.5%            
Beijing Dabeinong Technology Group Co. Ltd., Class A   20,900     20,481  
China Agri-Industries Holdings Ltd.   171,200     92,926  
China BlueChemical Ltd., Class H   138,000     26,208  
China Huishan Dairy Holdings Co. Ltd.(a)(c)   295,050     568  
China Modern Dairy Holdings Ltd.(a)   190,000     22,918  
COFCO Meat Holdings Ltd.(a)   104,000     26,023  
Fujian Sunner Development Co. Ltd., Class A   3,800     11,791  
Heilongjiang Agriculture Co. Ltd., Class A   7,600     13,384  
Henan Shuanghui Investment & Development Co. Ltd., Class A   11,400     55,449  
Inner Mongolia Yili Industrial Group Co. Ltd., Class A   26,600     110,012  
Jiangsu Yangnong Chemical Co. Ltd., Class A   1,900     19,013  
Jiangxi Zhengbang Technology Co. Ltd., Class A   11,400     24,658  
Muyuan Foodstuff Co. Ltd., Class A   9,500     158,329  
New Hope Liuhe Co. Ltd., Class A   19,000     65,778  
Shandong Hualu Hengsheng Chemical Co. Ltd., Class A   7,600     18,353  
Sinofert Holdings Ltd.   152,000     15,214  
Tech-Bank Food Co. Ltd., Class A(a)   5,700     7,950  
Tongwei Co. Ltd., Class A   17,100     42,198  
Wens Foodstuffs Group Co. Ltd., Class A   23,500     109,361  
Yuan Longping High-Tech Agriculture Co. Ltd., Class A   5,700     13,479  
          854,093  
France — 0.1%            
Vilmorin & Cie SA   494     21,787  
Germany — 1.0%            
K+S AG, Registered(b)   14,231     115,521  
KWS Saat SE & Co. KGaA   874     48,962  
Suedzucker AG   5,358     82,809  
          247,292  
Hong Kong — 3.3%            
Ausnutria Dairy Corp. Ltd.   41,000     66,184  
WH Group Ltd.(d)   712,500     724,107  
          790,291  
Security   Shares     Value  
             
India — 2.6%            
Balrampur Chini Mills Ltd.   8,987     $17,783  
Bayer CropScience Ltd./India   785     47,666  
Chambal Fertilizers and Chemicals Ltd.   7,448     14,541  
Coromandel International Ltd.   5,111     43,590  
EID Parry India Ltd.   4,446     11,607  
Escorts Ltd.   4,104     44,362  
Gujarat Narmada Valley Fertilizers & Chemicals Ltd.   3,135     6,770  
Kaveri Seed Co. Ltd.   1,919     11,397  
KRBL Ltd.   3,477     12,038  
Rallis India Ltd.   4,009     12,441  
Tata Consumer Products Ltd.   22,211     106,535  
UPL Ltd.   39,748     286,237  
Venky's India Ltd.   304     5,163  
          620,130  
Indonesia — 1.2%            
Charoen Pokphand Indonesia Tbk PT   554,800     220,412  
Inti Agri Resources Tbk PT(a)(c)   2,230,700     6,460  
Japfa Comfeed Indonesia Tbk PT   262,200     25,585  
Perusahaan Perkebunan London Sumatra Indonesia Tbk PT.   222,300     15,029  
Sawit Sumbermas Sarana Tbk PT   216,600     12,228  
Tunas Baru Lampung Tbk PT.   171,000     7,330  
          287,044  
Ireland — 0.1%            
Origin Enterprises PLC   9,348     28,751  
Israel — 1.0%            
Israel Chemicals Ltd.   52,763     195,402  
Israel Corp. Ltd. (The)(a)   285     40,014  
          235,416  
Italy — 2.9%            
CNH Industrial NV   75,848     695,682  
Japan — 6.7%            
Chubu Shiryo Co. Ltd.   1,000     13,202  
Hokuto Corp.   1,900     32,376  
Iseki & Co. Ltd.   700     7,476  
Kubota Corp.   77,900     1,099,909  
Kumiai Chemical Industry Co. Ltd.   6,200     41,672  
Maruha Nichiro Corp.   3,300     69,326  
Mitsui Sugar Co. Ltd.   1,300     22,887  
NH Foods Ltd.   6,600     249,033  
Nihon Nohyaku Co. Ltd.   1,900     8,895  
Sakata Seed Corp.   2,200     61,290  
YAMABIKO Corp.   2,600     20,971  
          1,627,037  
Malaysia — 2.8%            
FGV Holdings Bhd(a)   119,700     32,374  
Genting Plantations Bhd.   19,000     45,167  
IOI Corp. Bhd   142,500     140,979  
Kuala Lumpur Kepong Bhd   32,300     167,362  
Leong Hup International Berhad   79,800     13,253  
QL Resources Bhd   49,405     95,645  
Sime Darby Plantation Bhd   155,800     183,338  
          678,118  
Netherlands — 0.5%            
ForFarmers NV   2,964     17,907  
OCI NV(a)   6,270     104,377  
          122,284  


 

S c h e d u l e   o f   I n v e s t m e n t s 9

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI Global Agriculture Producers ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
Norway — 7.6%    
Austevoll Seafood ASA   6,802 $ 59,461  
Bakkafrost P/F   3,724     232,558  
Grieg Seafood ASA   3,762     47,542  
Leroy Seafood Group ASA   22,420     135,915  
Mowi ASA   32,775     684,961  
Norway Royal Salmon ASA   960     21,751  
Salmar ASA   4,218     187,303  
Yara International ASA   13,262     477,453  
          1,846,944  
Pakistan — 0.4%            
Engro Corp. Ltd./Pakistan   23,220     46,635  
Engro Fertilizers Ltd.   38,467     15,745  
Fauji Fertilizer Co. Ltd.   40,100     26,869  
Millat Tractors Ltd.   2,565     11,016  
          100,265  
Poland — 0.1%            
Grupa Azoty SA(a)   3,382     17,448  
             
Russia — 0.4%            
PhosAgro PJSC, GDR(e)   8,607     94,763  
             
Saudi Arabia — 2.0%            
Almarai Co. JSC   18,829     229,873  
National Agriculture Development Co. (The)(a)   3,040     20,907  
Saudi Arabian Fertilizer Co.   12,521     224,286  
          475,066  
Singapore — 2.3%            
Bumitama Agri Ltd.   26,600     11,149  
China XLX Fertiliser Ltd.   38,000     11,703  
First Resources Ltd.(b)   39,900     45,455  
Golden Agri-Resources Ltd.   476,900     68,338  
Japfa Ltd.   33,440     13,417  
Wilmar International Ltd.   144,400     410,739  
          560,801  
South Africa — 0.2%            
Astral Foods Ltd.   2,888     34,458  
Oceana Group Ltd.   5,795     20,150  
Tongaat Hulett Ltd.(a)   10,038     2,067  
          56,675  
South Korea — 0.2%            
Dongwon Industries Co. Ltd.   114     18,398  
Easy Bio Inc.(a)(b)   2,812     10,303  
Harim Holdings Co. Ltd.   2,204     12,812  
Namhae Chemical Corp.(a)   1,862     10,640  
          52,153  
Sweden — 0.1%            
Scandi Standard AB   3,686     23,952  
Taiwan — 0.5%            
Charoen Pokphand Enterprise   13,000     26,705  
Taiwan Fertilizer Co. Ltd.   57,000     90,358  
          117,063  
Thailand — 1.1%            
Charoen Pokphand Foods PCL, NVDR   288,800     244,823  
GFPT PCL, NVDR   41,800     14,174  
Khon Kaen Sugar Industry PCL, NVDR   138,754     9,322  
            268,319  
United Kingdom — 0.8%            
Cranswick PLC   3,895     165,670  
Security   Shares     Value  
             
United Kingdom (continued)            
Sirius Minerals PLC(a)(b)   528,105   $ 29,977  
          195,647  
United States — 47.6%            
AGCO Corp.   4,788     289,339  
American Vanguard Corp.   2,071     31,583  
Archer-Daniels-Midland Co.   41,648     1,568,047  
Bunge Ltd.   10,564     495,980  
Cal-Maine Foods Inc.(b)   2,318     80,875  
CF Industries Holdings Inc.   16,226     598,090  
Corteva Inc.(a)   55,936     1,521,459  
Darling Ingredients Inc.(a)   12,255     314,953  
Deere & Co.   22,363     3,499,362  
FMC Corp.   9,690     902,139  
Fresh Del Monte Produce Inc.   2,337     64,081  
Ingredion Inc.   4,997     416,250  
Intrepid Potash Inc.(a)   7,429     13,149  
Lindsay Corp.   817     80,907  
Mosaic Co. (The).   26,866     457,528  
Pilgrim's Pride Corp.(a)(b)   4,693     99,304  
Sanderson Farms Inc.   1,501     185,464  
Scotts Miracle-Gro Co. (The)   3,135     332,279  
Toro Co. (The)   7,961     568,654  
          11,519,443  
Total Common Stocks — 98.8%
(Cost: $26,057,473)
        23,897,528  
             
Preferred Stocks            
Chile — 0.9%            
Sociedad Quimica y Minera de Chile SA, Series B, Preference Shares   8,569     224,125  
Total Preferred Stocks — 0.9%
(Cost: $255,789)
        224,125  
             
Short-Term Investments            
             
Money Market Funds — 1.3%            
BlackRock Cash Funds: Institutional, SL Agency Shares, 1.74%(f)(g)(h)   285,033     285,233  
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52%(f)(g)   30,000     30,000  
          315,233  
Total Short-Term Investments — 1.3%
(Cost: $315,134)
        315,233  
Total Investments in Securities — 101.0%
(Cost: $26,628,396)
        24,436,886  
Other Assets, Less Liabilities — (1.0)%         (245,209 )
Net Assets — 100.0%       $ 24,191,677  

(a) Non-income producing security.

(b) All or a portion of this security is on loan.

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

(d) 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) This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933.


10 2 0 2 0   i  S h a r e s   S e m i - A n n u a l   R e p o r t   t o   S h a r e h o l d e r s

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI Global Agriculture Producers ETF
February 29, 2020  

 

(f) Affiliate of the Fund.

(g) Annualized 7-day yield as of period-end.

(h) All or a portion of this security was purchased with cash collateral received from loaned securities.

 

Affiliates

 

Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940Act, were as follows:

 

                                        Change in  
    Shares           Shares                       Unrealized  
    Held at           Held at     Value at           Net Realized     Appreciation  
Affiliated Issuer   08/31/19     Net Activity     02/29/20     02/29/20     Income      Gain (Loss) (a)   (Depreciation)  
BlackRock Cash Funds: Institutional, SL Agency Shares     327,331       (42,298 )     285,033     $ 285,233     $ 3,168 (b)   $ 6     $ 72  
BlackRock Cash Funds: Treasury, SL Agency Shares     21,000       9,000       30,000       30,000       237              
                            $ 315,233     $ 3,405     $ 6     $ 72  

 

(a) Includes realized capital gain distributions from an affiliated fund, if any.

(b) Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

 

Fair Value Measurements

 

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

 

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.

 

    Level 1     Level 2     Level 3     Total  
Investments                        
Assets                        
Common Stocks   $ 23,890,500     $     $ 7,028     $ 23,897,528  
Preferred Stocks     224,125                   224,125  
Money Market Funds     315,233                   315,233  
    $ 24,429,858     $     $ 7,028     $ 24,436,886  

 

See notes to financial statements.

 

S c h e d u l e  o f  I n v e s t m e n t s 11

 

 

 

 

Schedule of Investments (unaudited) iShares® MSCI Global Energy Producers ETF
February 29, 2020 (Percentages shown are based on Net Assets)

  

Security   Shares     Value  
                 
Common Stocks                
                 
Argentina — 0.1%                
YPF SA, ADR     3,626     $ 28,972  
                 
Australia — 2.1%                
Beach Energy Ltd.     37,176       42,066  
Cooper Energy Ltd.(a)     34,700       10,851  
New Hope Corp. Ltd.     6,776       6,313  
Oil Search Ltd.     29,600       104,774  
Santos Ltd.     38,450       169,320  
Senex Energy Ltd.(a)     30,076       4,848  
Washington H Soul Pattinson & Co. Ltd.     2,626       33,050  
Whitehaven Coal Ltd.     15,076       19,440  
Woodside Petroleum Ltd.     20,350       366,329  
              756,991  
Austria — 0.4%                
OMV AG.     3,226       134,125  
Brazil — 1.4%                
Dommo Energia SA(a)     2,160       622  
Enauta Participacoes SA     2,600       7,659  
Petro Rio SA(a)     2,600       22,706  
Petroleo Brasileiro SA     80,000       481,420  
              512,407  
Canada — 6.6%                
Advantage Oil & Gas Ltd.(a)     4,076       6,134  
ARC Resources Ltd.     7,600       33,064  
Baytex Energy Corp.(a)     .11,300       10,438  
Birchcliff Energy Ltd.     5,650       6,356  
Cameco Corp.     8,676       75,039  
Canacol Energy Ltd.     2,676       8,532  
Canadian Natural Resources Ltd.     25,600       658,904  
Cenovus Energy Inc.     22,776       167,467  
Crescent Point Energy Corp.     11,800       32,086  
Enerplus Corp.     5,250       22,801  
Freehold Royalties Ltd.     2,150       9,642  
Frontera Energy Corp.     1,526       8,628  
Husky Energy Inc.     7,826       37,254  
Imperial Oil Ltd.     5,800       126,988  
Kelt Exploration Ltd.(a)     3,157       7,526  
MEG Energy Corp.(a)(b)     5,276       24,290  
NexGen Energy Ltd.(a)     5,250       4,654  
NuVista Energy Ltd.(a)     4,250       6,269  
Paramount Resources Ltd., Class A(a)     1,250       3,986  
Parex Resources Inc.(a)     .3,150       43,084  
Peyto Exploration & Development Corp.     3,576       5,861  
PrairieSky Royalty Ltd.     4,776       44,296  
Seven Generations Energy Ltd., Class A(a)     6,276       25,808  
Suncor Energy Inc.     33,400       920,376  
Surge Energy Inc.(b)     6,800       4,407  
Tamarack Valley Energy Ltd.(a)     4,126       3,965  
TORC Oil & Gas Ltd.     3,576       8,711  
Tourmaline Oil Corp.     5,676       47,147  
Vermilion Energy Inc.     3,300       33,090  
Whitecap Resources Inc.     8,826       25,906  
              2,412,709  
China — 2.7%                
China Coal Energy Co. Ltd., Class H     22,000       7,114  
China Shenhua Energy Co. Ltd., Class A     5,000       11,445  
China Shenhua Energy Co. Ltd., Class H     75,000       130,116  
Security   Shares     Value  
                 
China (continued)                
CNOOC Ltd.     400,000     $ 548,181  
Guanghui Energy Co. Ltd., Class A     15,000       6,094  
Inner Mongolia Yitai Coal Co. Ltd., Class B     25,000       17,150  
PetroChina Co. Ltd., Class A.     20,000       14,506  
PetroChina Co. Ltd., Class H     472,000       182,912  
Shaanxi Coal Industry Co. Ltd., Class A     7,600       8,589  
Shandong Xinchao Energy Corp. Ltd., Class A(a)     5,000       1,366  
Shanxi Lu’an Environmental Energy Development Co. Ltd., Class A     5,000       4,335  
Shanxi Meijin Energy Co. Ltd., Class A(a)     5,000       5,965  
Shanxi Xishan Coal & Electricity Power Co. Ltd.,
Class A.
    5,000       3,619  
Yanzhou Coal Mining Co. Ltd., Class A     .5,000       6,345  
Yanzhou Coal Mining Co. Ltd., Class H     34,000       25,784  
              973,521  
Colombia — 0.3%                
Ecopetrol SA.     109,276       95,657  
Finland — 1.0%                
Neste OYJ.     9,250       362,329  
France — 6.0%                
Etablissements Maurel et Prom SA     976       2,450  
TOTAL SA     52,150       2,198,565  
              2,201,015  
Greece — 0.1%                
Motor Oil Hellas Corinth Refineries SA     1,323       21,508  
Hong Kong — 0.0%                
Agritrade Resources Ltd.(b)     60,000       1,509  
Hungary — 0.2%                
MOL Hungarian Oil & Gas PLC     8,800       67,678  
India — 4.0%                
Bharat Petroleum Corp. Ltd.     14,550       85,958  
Coal India Ltd.     28,100       65,570  
Hindustan Petroleum Corp. Ltd.     13,526       37,026  
Indian Oil Corp. Ltd.     42,000       61,544  
Oil & Natural Gas Corp. Ltd.     54,500       69,440  
Oil India Ltd.     5,326       7,970  
Reliance Industries Ltd.     25,700       473,154  
Reliance Industries Ltd., GDR(c)     18,250       663,388  
              1,464,050  
Indonesia — 0.3%                
Adaro Energy Tbk PT     305,000       24,553  
Alfa Energi Investama Tbk PT(a)     17,600       116  
Bukit Asam Tbk PT     62,600       9,773  
Bumi Resources Tbk PT(a)     1,210,000       4,217  
Indika Energy Tbk PT     35,000       1,830  
Indo Tambangraya Megah Tbk PT     10,000       7,876  
Medco Energi Internasional Tbk PT(a)     130,066       5,711  
Sugih Energy Tbk PT(a)(d)     206,700       58  
United Tractors Tbk PT     37,600       43,503  
              97,637  
Israel — 0.1%                
Equital Ltd.(a)     367       8,851  
Naphtha Israel Petroleum Corp. Ltd.     577       2,394  
Oil Refineries Ltd.     39,126       13,224  
Paz Oil Co. Ltd.     250       27,382  
              51,851  


12 2 0 2 0  I S h a r e s  S e m i - A n n u a l  R e p o r t  t o  S h a r e h o l d e r s

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI Global Energy Producers ETF
February 29, 2020 (Percentages shown are based on Net Assets)

  

Security   Shares     Value  
             
Italy — 1.9%            
Eni SpA     55,500     $ 680,236  
Saras SpA     12,600       14,740  
              694,976  
Japan — 1.6%                
Cosmo Energy Holdings Co. Ltd.     1,236       20,649  
Idemitsu Kosan Co. Ltd.     4,268       105,172  
Inpex Corp.     22,600       195,462  
Japan Petroleum Exploration Co. Ltd.     700       14,997  
JXTG Holdings Inc.     65,000       261,531  
              597,811  
Malaysia — 0.0%                
Hengyuan Refining Co. Bhd(a)     2,600       2,215  
Hibiscus Petroleum Bhd(a)     22,600       4,021  
Petron Malaysia Refining & Marketing Bhd     2,600       2,831  
              9,067  
New Zealand — 0.0%                
New Zealand Refining Co. Ltd. (The)     4,126       3,122  
Norway — 1.1%                
Aker BP ASA     2,400       56,175  
BW Energy Ltd.(a)     1,000       1,798  
DNO ASA     12,750       8,693  
Equinor ASA     21,700       323,605  
              390,271  
Pakistan — 0.0%                
Oil & Gas Development Co. Ltd.     12,600       9,589  
Pakistan Oilfields Ltd.     3,011       7,192  
              16,781  
Philippines — 0.0%                
Petron Corp.     100,100       6,598  
Pilipinas Shell Petroleum Corp.     5,000       2,555  
Semirara Mining & Power Corp.     20,000       7,612  
              16,765  
Poland — 0.4%                
Grupa Lotos SA     1,950       29,408  
Lubelski Wegiel Bogdanka SA     184       768  
Polski Koncern Naftowy ORLEN SA     6,576       97,805  
              127,981  
Portugal — 0.4%                
Galp Energia SGPS SA     10,800       146,749  
Russia — 4.4%                
LUKOIL PJSC     9,000       763,326  
Novatek PJSC, GDR(e)     2,000       286,600  
Rosneft Oil Co. PJSC     12,500       75,037  
Rosneft Oil Co. PJSC, GDR(e)     12,600       76,230  
Surgutneftegas PJSC     115,000       65,774  
Surgutneftegas PJSC, ADR     3,976       22,663  
Tatneft PJSC     32,800       327,805  
              1,617,435  
Saudi Arabia — 0.7%                
Rabigh Refining & Petrochemical Co.(a)     4,800       20,088  
Saudi Arabian Oil Co.(a)(c)     25,500       226,689  
              246,777  
South Africa — 0.1%                
Exxaro Resources Ltd.     5,750       40,937  
South Korea — 0.5%                
SK Innovation Co. Ltd.     1,200       111,651  
Security   Shares     Value  
                 
South Korea (continued)                
S-Oil Corp.     1,000     $ 54,837  
              166,488  
Spain — 0.9%                
Repsol SA     30,800       342,721  
Sweden — 0.3%                
Lundin Petroleum AB     4,000       111,066  
Thailand — 0.5%                
Bangchak Corp. PCL, NVDR     25,000       19,014  
Banpu PCL, NVDR.     100,000       22,500  
Esso Thailand PCL, NVDR     25,000       4,754  
IRPC PCL, NVDR     260,000       18,127  
PTT Exploration & Production PCL, NVDR     30,031       100,881  
Thai Oil PCL, NVDR(b)     25,000       34,266  
              199,542  
Turkey — 0.1%                
Tupras Turkiye Petrol Rafinerileri AS     2,700       43,767  
United Arab Emirates — 0.1%                
Dana Gas PJSC     78,376       18,672  
United Kingdom — 16.4%                
Anglo Pacific Group PLC     3,100       5,128  
BP PLC     440,900       2,230,966  
Cairn Energy PLC(a)     12,726       22,611  
Diversified Gas & Oil PLC     13,000       13,217  
EnQuest PLC(a)     34,400       8,788  
Gulf Keystone Petroleum Ltd.     4,400       8,329  
Hurricane Energy PLC(a)(b)     34,276       6,479  
Pharos Energy PLC     3,800       1,485  
Premier Oil PLC(a)(b)     17,700       17,553  
Royal Dutch Shell PLC, Class A     91,300       1,937,484  
Royal Dutch Shell PLC, Class B     80,850       1,717,996  
Serica Energy PLC(a)     3,750       4,689  
Tullow Oil PLC     29,726       12,796  
              5,987,521  
United States — 42.8%                
Antero Resources Corp.(a)(b)     5,200       8,320  
Apache Corp.     8,200       204,344  
Arch Coal Inc., Class A     350       17,623  
Berry Corp.     1,276       8,128  
Bonanza Creek Energy Inc.(a)(b).     350       5,702  
Brigham Minerals Inc., Class A.     500       7,975  
Cabot Oil & Gas Corp.     8,850       123,280  
California Resources Corp.(a)(b)     976       6,198  
Callon Petroleum Co.(a)     8,601       19,524  
Centennial Resource Development Inc./DE, Class A(a)(b)     3,976       9,423  
Chesapeake Energy Corp.(a)(b)     37,550       10,326  
Chevron Corp.     41,100       3,836,274  
Cimarex Energy Co.     2,100       69,405  
CNX Resources Corp.(a)     4,176       22,175  
Concho Resources Inc.     4,400       299,288  
ConocoPhillips     23,700       1,147,554  
CONSOL Energy Inc.(a)     550       3,130  
Continental Resources Inc./OK     2,026       38,393  
Contura Energy Inc.(a)(b)     376       2,139  
CVR Energy Inc.     650       18,473  
Delek U.S. Holdings Inc.     1,650       35,277  
Denbury Resources Inc.(a)(b)     9,926       7,468  
Devon Energy Corp.     8,250       133,980  


S c h e d u l e  o f  I n v e s t m e n t s 13

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI Global Energy Producers ETF
February 29, 2020 (Percentages shown are based on Net Assets)

  

Security   Shares     Value  
             
United States (continued)                
Diamondback Energy Inc.     3,350     $ 207,700  
EOG Resources Inc.     12,650       800,239  
EQT Corp.     5,450       31,991  
Extraction Oil & Gas Inc.(a)     1,150       792  
Exxon Mobil Corp.     92,050       4,735,052  
Gran Tierra Energy Inc.(a)(b)     8,076       6,194  
Gulfport Energy Corp.(a)(b)     3,426       2,808  
Hess Corp.     5,976       335,732  
HollyFrontier Corp.     3,350       112,828  
Kosmos Energy Ltd.     6,050       18,453  
Laredo Petroleum Inc.(a)(b)     3,450       3,726  
Magnolia Oil & Gas Corp., Class A(a)(b)     2,426       18,219  
Marathon Oil Corp.     17,676       146,357  
Marathon Petroleum Corp.     14,100       668,622  
Matador Resources Co.(a)(b)     2,426       23,387  
Murphy Oil Corp.     3,350       63,147  
NACCO Industries Inc., Class A.     50       2,061  
Noble Energy Inc.     10,450       165,423  
Northern Oil and Gas Inc.(a)     4,476       6,490  
Oasis Petroleum Inc.(a)(b)     5,876       9,607  
Occidental Petroleum Corp.     19,400       635,156  
Ovintiv Inc.     5,700       65,860  
Par Pacific Holdings Inc.(a).     650       10,784  
Parsley Energy Inc., Class A     6,600       88,440  
PBF Energy Inc., Class A     2,450       54,855  
PDC Energy Inc.(a)(b)     2,163       41,162  
Peabody Energy Corp.     1,476       8,620  
Penn Virginia Corp.(a)     250       3,975  
Pioneer Natural Resources Co.     3,626       445,200  
QEP Resources Inc.     5,100       11,475  
Range Resources Corp.     4,776       13,230  
SM Energy Co.     2,326       15,282  
Southwestern Energy Co.(a)(b)     10,976       15,586  
Talos Energy Inc.(a)(b).     476       6,759  
Tellurian Inc.(a)(b)     2,050       3,690  
Texas Pacific Land Trust.     139       96,716  
Valero Energy Corp.     8,950       592,937  
Viper Energy Partners LP     1,250       22,288  
W&T Offshore Inc.(a)     2,026       5,268  
Whiting Petroleum Corp.(a)     1,962       3,630  
WPX Energy Inc.(a)     9,200       85,836  
              15,619,976  
Total Common Stocks — 97.5%                
(Cost: $50,631,094)             35,580,384  
Security   Shares     Value  
             
Preferred Stocks                
                 
Brazil — 1.4%                
Petroleo Brasileiro SA, Preference Shares, NVS     91,737     $ 515,248  
                 
Russia — 0.2%                
Surgutneftegas PJSC, Preference Shares, NVS     150,000       73,147  
                 
Total Preferred Stocks — 1.6%                
(Cost: $465,464)             588,395  
                 
Short-Term Investments                
                 
Money Market Funds — 0.7%                
BlackRock Cash Funds: Institutional, SL Agency Shares, 1.74%(f)(g)(h)     240,040       240,208  
                 
Total Short-Term Investments — 0.7%                
(Cost: $240,105)             240,208  
                 
Total Investments in Securities — 99.8%                
(Cost: $51,336,663)             36,408,987  
                 
Other Assets, Less Liabilities — 0.2%             84,746  
                 
Net Assets — 100.0%           $ 36,493,733  

 

(a) Non-income producing security.

(b) All or a portion of this 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) This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933.

(f) Affiliate of the Fund.

(g) Annualized 7-day yield as of period-end.

(h) All or a portion of this security was purchased with cash collateral received from loaned securities.



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Schedule of Investments (unaudited) (continued) iShares® MSCI Global Energy Producers ETF
February 29, 2020  

 

Affiliates

 

Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940Act, were as follows:

 

                                        Change in  
    Shares           Shares                       Unrealized  
    Held at           Held at     Value at           Net Realized     Appreciation  
Affiliated Issuer   08/31/19     Net Activity     02/29/20     02/29/20     Income     Gain (Loss) (a)   (Depreciation)  
BlackRock Cash Funds: Institutional, SL Agency Shares     792,223       (552,183 )     240,040     $ 240,208     $ 3,666 (b)   $ (43 )   $ 67  
BlackRock Cash Funds: Treasury, SL Agency Shares     91,000       (91,000 )                 666              
                            $ 240,208     $ 4,332     $ (43 )   $ 67  

 

(a) Includes realized capital gain distributions from an affiliated fund, if any.

(b) Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

 

Futures Contracts

 

                      Value/  
                Notional     Unrealized  
    Number of     Expiration     Amount     Appreciation  
Description     Contracts       Date       (000)       (Depreciation)  
Long Contracts                                
E-mini S&P Select Sector Energy Index     7       03/20/20     $ 329     $ (61,505 )

 

Derivative Financial Instruments Categorized by Risk Exposure

 

As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

    Equity  
    Contracts  
Liabilities — Derivative Financial Instruments        
Futures contracts        
Unrealized depreciation on futures contracts(a)   $ 61,505  

 

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

 

For the six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

    Equity  
    Contracts  
Net Realized Gain (Loss) from:        
Futures contracts   $ 3,149  
Net Change in Unrealized Appreciation (Depreciation) on:        
Futures contracts   $ (61,505 )

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:      
Average notional value of contracts — long   $ 220,182  

 

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

 

Fair Value Measurements

 

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

 

S c h e d u l e  o f  I n v e s t m e n t s 15

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI Global Energy Producers ETF
February 29, 2020  

 

Fair Value Measurements (continued)

 

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.

 

    Level 1     Level 2     Level 3     Total  
Investments                        
Assets                        
Common Stocks   $ 35,580,326     $     $ 58     $ 35,580,384  
Preferred Stocks     588,395                   588,395  
Money Market Funds     240,208                   240,208  
    $ 36,408,929     $     $ 58     $ 36,408,987  
Derivative financial instruments(a)                                
Liabilities                                
Futures Contracts   $ (61,505 )   $     $     $ (61,505 )

  

(a) Shown at the unrealized appreciation (depreciation) on the contracts.

 

See notes to financial statements.

 

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Schedule of Investments (unaudited) iShares® MSCI Global Gold Miners ETF
February 29, 2020 (Percentages shown are based on Net Assets)

  

Security   Shares     Value  
             
Common Stocks                
                 
Australia — 8.7%                
Newcrest Mining Ltd.     1,460,091     $ 24,758,650  
Resolute Mining Ltd.(a)(b)     3,694,176       2,429,456  
St. Barbara Ltd.     2,284,117       3,460,808  
Westgold Resources Ltd.(a)     1,845,192       2,415,065  
              33,063,979  
Canada — 50.7%                
Agnico Eagle Mines Ltd.     379,056       17,984,934  
Alacer Gold Corp.(a)     994,722       4,498,054  
Alamos Gold Inc., Class A     1,158,771       6,741,909  
B2Gold Corp.     2,510,427       10,024,128  
Barrick Gold Corp.     3,859,815       73,610,656  
Centerra Gold Inc.(a)     699,009       4,415,835  
China Gold International Resources Corp. Ltd.(a)     1,429,197       1,117,933  
Eldorado Gold Corp.(a)     565,854       4,910,939  
Endeavour Mining Corp.(a)     242,212       4,276,399  
IAMGOLD Corp.(a)     1,415,115       4,027,071  
Kinross Gold Corp.(a)     3,277,657       16,481,681  
Kirkland Lake Gold Ltd.     493,433       15,912,925  
Leagold Mining Corp.(a)     492,937       1,193,463  
New Gold Inc.(a)     2,934,325       2,251,540  
Premier Gold Mines Ltd.(a).     1,113,521       1,028,619  
SEMAFO Inc.(a)     1,242,156       2,461,456  
SSR Mining Inc.(a)     361,142       5,649,780  
TMAC Resources Inc.(a)     370,211       441,269  
Torex Gold Resources Inc.(a)     294,413       3,899,626  
Wesdome Gold Mines Ltd.(a)     387,614       2,465,991  
Yamana Gold Inc.     2,658,503       10,357,933  
              193,752,141  
Peru — 1.6%                
Cia. de Minas Buenaventura SAA, ADR     545,233       6,079,348  
                 
Russia — 2.1%                
Polymetal International PLC     529,681       8,078,149  
                 
South Africa — 12.4%                
AngloGold Ashanti Ltd.     943,522       16,659,702  
Gold Fields Ltd.     2,211,233       12,962,522  
Harmony Gold Mining Co. Ltd.(a)     1,600,431       5,651,333  
Security   Shares     Value  
             
South Africa (continued)                
Sibanye Stillwater Ltd.(a)(b)     6,101,323     $ 12,205,361  
              47,478,918  
Turkey — 0.7%                
Koza Altin Isletmeleri AS(a)     227,600       2,658,687  
United Kingdom — 1.5%                
Centamin PLC     3,500,908       5,766,273  
United States — 21.9%                
Coeur Mining Inc.(a)(b)     642,563       2,673,062  
McEwen Mining Inc.(a)     1,516,347       1,364,712  
Newmont Corp.     1,782,614       79,558,063  
              83,595,837  
                 
Total Common Stocks — 99.6%                
(Cost: $387,383,982)             380,473,332  
                 
Short-Term Investments                
                 
Money Market Funds — 0.7%                
BlackRock Cash Funds: Institutional, SL Agency Shares, 1.74%(c)(d)(e)     2,542,157       2,543,937  
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52%(c)(d)     90,000       90,000  
              2,633,937  
                 
Total Short-Term Investments — 0.7%                
(Cost: $2,632,733)             2,633,937  
                 
Total Investments in Securities — 100.3%                
(Cost: $390,016,715)             383,107,269  
                 
Other Assets, Less Liabilities — (0.3)%.             (1,152,624 )
                 
Net Assets — 100.0%.           $ 381,954,645  

 

(a) Non-income producing security.

(b) All or a portion of this security is on loan.

(c) Affiliate of the Fund.

(d) Annualized 7-day yield as of period-end.

(e) All or a portion of this security was purchased with cash collateral received from loaned securities.



Affiliates

 

Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940Act, were as follows:

  

                                        Change in  
    Shares           Shares                       Unrealized  
    Held at           Held at     Value at           Net Realized     Appreciation  
Affiliated Issuer   08/31/19     Net Activity     02/29/20     02/29/20     Income     Gain (Loss) (a)   (Depreciation)  
BlackRock Cash Funds: Institutional, SL Agency Shares     10,240,200       (7,698,043 )     2,542,157     $ 2,543,937     $ 48,097 (b)   $ 485     $ 373  
BlackRock Cash Funds: Treasury, SL Agency Shares     98,000       (8,000 )     90,000       90,000       1,821              
                            $ 2,633,937     $ 49,918     $ 485     $ 373  

 

(a) Includes realized capital gain distributions from an affiliated fund, if any.

(b) Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

 

Fair Value Measurements

 

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

  

S c h e d u l e  o f  I n v e s t m e n t s 17

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI Global Gold Miners ETF
February 29, 2020  

 

Fair Value Measurements (continued)

 

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.

 

    Level 1     Level 2     Level 3     Total  
Investments                        
Assets                        
Common Stocks   $ 380,473,332     $     $     $ 380,473,332  
Money Market Funds     2,633,937                   2,633,937  
    $ 383,107,269     $     $     $ 383,107,269  

 

See notes to financial statements.

  

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Schedule of Investments (unaudited) iShares® MSCI Global Metals & Mining Producers ETF
February 29, 2020 (Percentages shown are based on Net Assets)

  

Security   Shares     Value  
             
Common Stocks                
                 
Australia — 26.7%                
Alumina Ltd.     760,349     $ 951,056  
BHP Group Ltd.     914,537       19,812,160  
BHP Group PLC     654,576       11,859,106  
BlueScope Steel Ltd.     158,808       1,210,267  
Fortescue Metals Group Ltd.     429,156       2,789,119  
Galaxy Resources Ltd.(a)(b)     122,152       70,094  
IGO Ltd.     159,120       540,663  
Iluka Resources Ltd.     130,104       699,597  
Jupiter Mines Ltd.     418,392       64,742  
Lynas Corp. Ltd.(a)     200,928       239,017  
Mineral Resources Ltd.     51,792       552,652  
Mount Gibson Iron Ltd.     125,268       55,729  
Orocobre Ltd.(a)(b)     64,740       112,701  
OZ Minerals Ltd.     100,559       583,519  
Perenti Global Ltd.     192,660       167,694  
Pilbara Minerals Ltd.(a)(b)     437,424       70,507  
Rio Tinto Ltd.     114,972       6,469,167  
Sandfire Resources Ltd.     52,260       143,539  
Sims Ltd.     54,444       336,635  
South32 Ltd.     1,546,428       2,213,472  
Western Areas Ltd.     81,588       127,301  
              49,068,737  
Austria — 0.4%                
voestalpine AG     36,972       803,303  
Belgium — 0.1%                
Bekaert SA     11,856       253,822  
Brazil — 5.5%                
Cia. Siderurgica Nacional SA     187,200       463,887  
Vale SA     973,388       9,559,878  
              10,023,765  
Canada — 3.2%                
Altius Minerals Corp.     14,664       99,737  
ERO Copper Corp.(a)(b)     19,812       212,385  
First Quantum Minerals Ltd.     213,876       1,580,549  
Hudbay Minerals Inc.     76,440       186,210  
Ivanhoe Mines Ltd., Class A(a)     187,356       436,864  
Labrador Iron Ore Royalty Corp.     19,812       287,509  
Largo Resources Ltd.(a)     91,728       61,500  
Lithium Americas Corp.(a)(b)     15,132       62,338  
Lucara Diamond Corp.     114,816       57,308  
Lundin Mining Corp.     204,516       1,043,643  
Major Drilling Group International Inc.(a)     26,832       92,348  
Stelco Holdings Inc.     11,076       58,914  
Teck Resources Ltd., Class B     152,724       1,535,944  
Turquoise Hill Resources Ltd.(a)     251,004       134,632  
              5,849,881  
Chile — 0.1%                
CAP SA     21,060       118,864  
China — 2.6%                
Aluminum Corp. of China Ltd., Class A(a)     249,600       109,264  
Aluminum Corp. of China Ltd., Class H(a)     1,248,000       331,495  
Angang Steel Co. Ltd., Class A     109,283       44,712  
Baoshan Iron & Steel Co. Ltd., Class A     358,863       266,958  
China Hongqiao Group Ltd.     546,000       292,861  
China Metal Recycling Holdings Ltd.(a)(c)     132,000       0 (d)
China Molybdenum Co. Ltd., Class A     249,600       145,328  
Security   Shares     Value  
                 
China (continued)                
China Molybdenum Co. Ltd., Class H     1,266,000     $ 472,737  
China Northern Rare Earth Group High-Tech Co. Ltd., Class A     78,070       101,633  
China Oriental Group Co. Ltd.     312,000       106,495  
China Zhongwang Holdings Ltd.     499,200       167,829  
Ganfeng Lithium Co. Ltd., Class A     15,600       116,004  
GEM Co. Ltd., Class A     77,599       59,391  
Guangdong HEC Technology Holding Co. Ltd., Class A     62,400       74,449  
Hesteel Co. Ltd., Class A     202,800       65,277  
Hunan Valin Steel Co. Ltd., Class A(a)     78,000       44,299  
Inner Mongolia BaoTou Steel Union Co. Ltd., Class A     904,898       151,459  
Inner Mongolia Eerduosi Resources Co. Ltd., Class B     162,596       132,353  
Jiangxi Copper Co. Ltd., Class A.     15,600       30,552  
Jiangxi Copper Co. Ltd., Class H     468,000       548,889  
Jinchuan Group International Resources Co. Ltd.     780,000       77,069  
Jinduicheng Molybdenum Co. Ltd., Class A     62,400       57,488  
Maanshan Iron & Steel Co. Ltd., Class A     93,600       37,091  
Maanshan Iron & Steel Co. Ltd., Class H.     312,000       114,102  
MMG Ltd.(a)     758,000       154,653  
Nanjing Iron & Steel Co. Ltd., Class A     93,600       41,242  
Pangang Group Vanadium Titanium & Resources Co. Ltd., Class A(a)     171,600       58,671  
Sansteel Minguang Co. Ltd. Fujian, Class A     47,051       52,704  
Shandong Nanshan Aluminum Co. Ltd., Class A.     234,000       70,968  
Shanxi Taigang Stainless Steel Co. Ltd., Class A     124,800       62,845  
Shenghe Resources Holding Co. Ltd., Class A     46,800       47,334  
Shenzhen Zhongjin Lingnan Nonfemet Co. Ltd., Class A     62,664       33,169  
Shougang Fushan Resources Group Ltd.     624,000       120,908  
Tiangong International Co. Ltd.     312,000       111,299  
Tongling Nonferrous Metals Group Co. Ltd., Class A     218,400       64,362  
Xiamen Tungsten Co. Ltd., Class A     30,799       52,608  
Xinxing Ductile Iron Pipes Co. Ltd., Class A     93,600       47,669  
Xinyu Iron & Steel Co. Ltd., Class A     62,400       38,028  
Yintai Gold Co. Ltd., Class A     31,200       62,443  
Yunnan Tin Co. Ltd., Class A(a)     31,200       41,331  
Zhejiang Huayou Cobalt Co. Ltd., Class A.     15,600       84,336  
              4,692,305  
Egypt — 0.0%                
Ezz Steel Co. SAE(a)     77,504       39,564  
Finland — 0.2%                
Outokumpu OYJ     100,308       376,386  
France — 0.6%                
APERAM SA     15,912       470,871  
Constellium SE, Class A(a)(b).     38,532       477,797  
Eramet(b)     2,964       95,786  
              1,044,454  
Germany — 1.0%                
Aurubis AG     10,764       505,346  
Salzgitter AG(b)     12,636       207,298  
thyssenkrupp AG(a)(b)     125,112       1,195,909  
              1,908,553  
India — 2.0%                
APL Apollo Tubes Ltd.     2,184       58,816  
Hindalco Industries Ltd.     364,884       788,242  
Jindal Saw Ltd.     46,488       48,957  
Jindal Steel & Power Ltd.(a).     129,279       275,693  
JSW Steel Ltd.     264,420       863,599  
MOIL Ltd.     24,466       40,953  


S c h e d u l e  o f  I n v e s t m e n t s 19

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI Global Metals & Mining Producers ETF
February 29, 2020 (Percentages shown are based on Net Assets)

  

Security   Shares     Value  
             
India (continued)                
National Aluminium Co. Ltd.     167,700     $ 77,846  
Tata Steel Ltd., GDR(b)(e)     95,472       481,179  
Vedanta Ltd.     471,744       745,194  
Vedanta Ltd., ADR     34,632       227,532  
Welspun Corp. Ltd.     27,456       70,725  
              3,678,736  
Indonesia — 0.0%                
Krakatau Steel Persero Tbk PT(a)     967,253       15,506  
Timah Tbk PT     920,467       36,889  
              52,395  
Japan — 6.5%                
Asahi Holdings Inc.     15,600       354,766  
Daido Steel Co. Ltd.     10,100       367,520  
Dowa Holdings Co. Ltd.     15,600       515,589  
Hitachi Metals Ltd.     66,900       956,999  
JFE Holdings Inc.     156,000       1,449,145  
Kobe Steel Ltd.     93,600       347,968  
Kyoei Steel Ltd.     10,100       153,094  
Maruichi Steel Tube Ltd.     15,600       378,918  
Mitsubishi Materials Corp.     35,300       807,025  
Mitsui Mining & Smelting Co. Ltd.     15,600       374,435  
Nakayama Steel Works Ltd.     15,600       59,441  
Neturen Co. Ltd.     15,600       98,490  
Nippon Denko Co. Ltd.(a)     62,400       84,461  
Nippon Light Metal Holdings Co. Ltd.     187,200       329,746  
Nippon Steel Corp.     254,705       2,871,379  
Sumitomo Metal Mining Co. Ltd.     78,000       1,941,955  
Toho Titanium Co. Ltd.     15,600       104,275  
Tokyo Steel Manufacturing Co. Ltd.     31,200       199,004  
UACJ Corp.     13,238       232,691  
Yamato Kogyo Co. Ltd.     15,600       326,853  
              11,953,754  
Malaysia — 0.3%                
Press Metal Aluminium Holdings Bhd     452,400       500,162  
Mexico — 1.4%                
Grupo Mexico SAB de CV, Series B     1,076,400       2,524,006  
Netherlands — 1.7%                
AMG Advanced Metallurgical Group NV(b)     9,672       223,108  
ArcelorMittal SA     205,608       2,899,011  
              3,122,119  
Norway — 0.6%                
Norsk Hydro ASA     414,492       1,166,659  
Peru — 0.5%                
Southern Copper Corp.     25,740       866,151  
Poland — 0.5%                
Jastrzebska Spolka Weglowa SA     17,628       60,493  
KGHM Polska Miedz SA(a)     42,900       767,537  
              828,030  
Qatar — 0.1%                
Qatar Aluminum Manufacturing Co.     892,476       149,261  
Russia — 4.7%                
Alrosa PJSC     794,042       843,551  
Magnitogorsk Iron & Steel Works PJSC     702,000       417,700  
Mechel PJSC, ADR(a)     41,652       97,466  
MMC Norilsk Nickel PJSC     19,656       5,923,125  
Security   Shares     Value  
             
Russia (continued)                
Novolipetsk Steel PJSC     363,480     $ 675,792  
Severstal PJSC     63,492       769,652  
              8,727,286  
Saudi Arabia — 0.7%                
Saudi Arabian Mining Co.(a)     130,728       1,327,665  
South Africa — 2.5%                
African Rainbow Minerals Ltd.     33,384       289,647  
Anglo American Platinum Ltd.     16,692       1,111,286  
Impala Platinum Holdings Ltd.(a)     247,728       1,962,896  
Kumba Iron Ore Ltd.     20,124       359,038  
Northam Platinum Ltd.(a)     110,604       781,888  
Royal Bafokeng Platinum Ltd.(a)     37,908       120,460  
              4,625,215  
South Korea — 3.1%                
Dongkuk Steel Mill Co. Ltd.(a)     17,784       68,530  
Hyundai Steel Co.     24,180       474,840  
KISWIRE Ltd.(a)     1,716       24,020  
Korea Zinc Co. Ltd.(a)     2,652       905,108  
Namsun Aluminum Co. Ltd.(a)(b)     19,344       59,967  
Poongsan Corp.     5,928       99,573  
POSCO     24,180       3,892,293  
Seah Besteel Corp.     3,900       35,002  
SeAH Steel Holdings Corp.     1       27  
Young Poong Corp.(a)     156       76,298  
              5,635,658  
Spain — 0.3%                
Acerinox SA     51,792       475,722  
Tubacex SA     40,560       96,234  
              571,956  
Sweden — 1.5%                
Boliden AB     84,552       1,730,268  
Granges AB     23,400       185,846  
SSAB AB, Class A     62,400       188,453  
SSAB AB, Class B     197,340       563,416  
              2,667,983  
Taiwan — 2.2%                
China Metal Products     156,011       149,419  
China Steel Corp.     3,744,612       2,844,369  
Chung Hung Steel Corp.     318,000       95,149  
Feng Hsin Steel Co. Ltd.     156,000       279,754  
Hsin Kuang Steel Co. Ltd.     156,000       150,696  
TA Chen Stainless Pipe     312,610       319,016  
Tung Ho Steel Enterprise Corp.     156,000       115,920  
Yieh Phui Enterprise Co. Ltd.     361,644       108,328  
              4,062,651  
Turkey — 0.4%                
Eregli Demir ve Celik Fabrikalari TAS     430,560       568,408  
Kardemir Karabuk Demir Celik Sanayi ve Ticaret AS,                
Class D(b)     234,936       97,745  
Koza Anadolu Metal Madencilik Isletmeleri AS(a)     57,564       104,088  
              770,241  
United Kingdom — 18.8%                
Anglo American PLC     320,892       7,344,151  
Antofagasta PLC     121,992       1,171,770  
Central Asia Metals PLC     51,792       122,385  
Evraz PLC     159,588       665,136  
Ferrexpo PLC     92,820       153,237  


20 2 0 2 0  I S h a r e s  S e m i - A n n u a l  R e p o r t  t o  S h a r e h o l d e r s

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI Global Metals & Mining Producers ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
                 
United Kingdom (continued)                
Glencore PLC     3,310,818   $ 8,172,792  
Hill & Smith Holdings PLC     23,712       404,942  
KAZ Minerals PLC     80,808       423,083  
Rio Tinto PLC     349,908       16,125,513  
              34,583,009  
United States — 10.2%                
AK Steel Holding Corp.(a)     99,060       228,829  
Alcoa Corp.(a)     57,408       796,249  
Allegheny Technologies Inc.(a)     38,844       663,844  
Carpenter Technology Corp.     14,820       544,635  
Century Aluminum Co.(a)     17,940       104,052  
Cleveland-Cliffs Inc.(b)     83,460       484,903  
Commercial Metals Co.     37,128       677,957  
Compass Minerals International Inc.     10,764       587,176  
Coronado Global Resources Inc.(f)     62,712       65,098  
Freeport-McMoRan Inc.     449,280       4,474,829  
Haynes International Inc.     4,368       110,554  
Kaiser Aluminum Corp.     4,992       471,994  
Materion Corp.     6,396       289,995  
Nucor Corp.     94,692       3,915,514  
Reliance Steel & Aluminum Co.     20,436       2,090,398  
Ryerson Holding Corp.(a)     6,552       54,578  
Schnitzer Steel Industries Inc., Class A     8,424       138,827  
Steel Dynamics Inc.     67,392       1,794,649  
SunCoke Energy Inc.     27,612       127,291  
TimkenSteel Corp.(a)(b)     12,168       61,692  
U.S. Steel Corp.     53,196       426,632  
Warrior Met Coal Inc.     15,840       280,685  
Worthington Industries Inc.     12,480       396,864  
              18,787,245  
Total Common Stocks — 98.4%                
(Cost: $248,756,841)             180,779,816  
                 
Preferred Stocks                
Brazil — 1.3%                
Bradespar SA, Preference Shares, NVS     78,000       577,265  
Security   Shares     Value  
                 
Brazil (continued)                
Cia. Ferro Ligas da Bahia-Ferbasa, Preference Shares, NVS     15,600     $ 61,686  
Gerdau SA, Preference Shares, NVS     343,200       1,287,860  
Metalurgica Gerdau SA, Preference Shares, NVS     218,400       384,844  
              2,311,655  
Total Preferred Stocks — 1.3%                
(Cost: $1,069,433)             2,311,655  
                 
Short-Term Investments                
                 
Money Market Funds — 1.2%                
BlackRock Cash Funds: Institutional, SL Agency Shares, 1.74%(g)(h)(i)     2,277,799       2,279,394  
Total Short-Term Investments — 1.2%                
(Cost: $2,277,945)             2,279,394  
Total Investments in Securities — 100.9%                
(Cost: $252,104,219)             185,370,865  
Other Assets, Less Liabilities — (0.9)%             (1,630,110 )
Net Assets — 100.0%.           $ 183,740,755  

 

(a) Non-income producing security.
(b) All or a portion of this security is on loan.

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

(d) Rounds to less than $1.

(e) This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933.

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

(g) Affiliate of the Fund.

(h) Annualized 7-day yield as of period-end.

(i) All or a portion of this security was purchased with cash collateral received from loaned securities.



Affiliates

 

Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940Act, were as follows:

 

                                        Change in  
    Shares           Shares                       Unrealized  
    Held at           Held at     Value at           Net Realized     Appreciation  
Affiliated Issuer   08/31/19     Net Activity     02/29/20     02/29/20     Income     Gain (Loss) (a)   (Depreciation)  
BlackRock Cash Funds: Institutional, SL Agency Shares     3,540,139       (1,262,340 )     2,277,799     $ 2,279,394     $ 49,486 (b)   $ 451     $ 258  
BlackRock Cash Funds: Treasury, SL Agency Shares     186,000       (186,000 )                 2,035              
                            $ 2,279,394     $ 51,521     $ 451     $ 258  

 

(a) Includes realized capital gain distributions from an affiliated fund, if any.

(b) Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

 

Fair Value Measurements

 

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

 

S c h e d u l e  o f  I n v e s t m e n t s 21

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI Global Metals & Mining Producers ETF
February 29, 2020  

 

Fair Value Measurements (continued)

 

The following table summarizes the value of the Fund's investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund's investments into major categories is disclosed in the Schedule of Investments above.

 

    Level 1     Level 2     Level 3     Total  
Investments                        
Assets                        
Common Stocks   $ 180,779,816     $     $ 0 (a)   $ 180,779,816  
Preferred Stocks     2,311,655                   2,311,655  
Money Market Funds     2,279,394                   2,279,394  
    $ 185,370,865     $     $ 0 (a)   $ 185,370,865  

 

(a) Rounds to less than $1.

 

See notes to financial statements.

 

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Schedule of Investments (unaudited) iShares® MSCI Global Silver and Metals Miners ETF

February 29, 2020

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
Common Stocks                
                 
Canada — 74.2%                
Agnico Eagle Mines Ltd.     24,921     $ 1,182,418  
Dundee Precious Metals Inc.(a)     453,040       1,771,863  
Eldorado Gold Corp.(a)     426,764       3,703,804  
Endeavour Silver Corp.(a)(b)     512,717       817,383  
First Majestic Silver Corp.(a)     403,888       3,047,927  
Fortuna Silver Mines Inc.(a)     511,208       1,496,664  
Kinross Gold Corp.(a)     126,477       635,989  
Lundin Gold Inc.(a)     213,564       1,653,019  
MAG Silver Corp.(a)(b)     225,771       1,914,012  
New Gold Inc.(a)     2,065,750       1,585,073  
Pan American Silver Corp.     480,552       9,511,876  
Premier Gold Mines Ltd.(a)(b)     755,349       697,756  
Seabridge Gold Inc.(a)(b)     140,595       1,384,636  
Silvercorp Metals Inc.     492,473       1,566,551  
SilverCrest Metals Inc.(a)     185,942       1,192,655  
SSR Mining Inc.(a)     235,215       3,679,752  
Wheaton Precious Metals Corp.     701,126       19,936,663  
Yamana Gold Inc.     2,053,295       7,999,950  
              63,777,991  
Japan — 2.7%                
Asahi Holdings Inc.     102,500       2,330,993  
                 
Mexico — 3.3%                
Industrias Penoles SAB de CV     319,478       2,863,545  
                 
Peru — 1.0%                
Cia. de Minas Buenaventura SAA, ADR     73,105       815,121  
                 
Russia — 0.4%                
Polymetal International PLC     19,900       303,494  
                 
South Africa — 4.6%                
Harmony Gold Mining Co. Ltd.(a)     1,116,219       3,941,516  
                 
United Kingdom — 2.6%                
Hochschild Mining PLC     793,978       1,619,595  
Security   Shares     Value  
United Kingdom (continued)                
SolGold PLC(a)(b)     2,836,804     $ 618,161  
              2,237,756  
United States — 11.3%                
Coeur Mining Inc.(a)(b)     584,840       2,432,934  
Hecla Mining Co.     1,262,828       3,333,866  
Newmont Corp.     87,935       3,924,539  
              9,691,339  
Total Common Stocks — 100.1%                
(Cost: $79,465,697)             85,961,755  
                 
Short-Term Investments                
                 
Money Market Funds — 2.5%                
BlackRock Cash Funds: Institutional, SL Agency Shares, 1.74%(c)(d)(e)     2,142,350       2,143,850  
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52%(c)(d)     25,000       25,000  
              2,168,850  
Total Short-Term Investments — 2.5%                
(Cost: $2,167,443)             2,168,850  
Total Investments in Securities — 102.6%                
(Cost: $81,633,140)             88,130,605  
Other Assets, Less Liabilities — (2.6)%             (2,219,083 )
Net Assets — 100.0%           $ 85,911,522  

 

(a) Non-income producing security.

(b) All or a portion of this security is on loan.
(c) Affiliate of the Fund.

(d) Annualized 7-day yield as of period-end.

(e) All or a portion of this security was purchased with cash collateral received from loaned securities.



Affiliates

 

Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940Act, were as follows:

 

                                        Change in  
    Shares           Shares                       Unrealized  
    Held at           Held at     Value at           Net Realized     Appreciation  
Affiliated Issuer   08/31/19     Net Activity     02/29/20     02/29/20     Income     Gain (Loss) (a)   (Depreciation)  
BlackRock Cash Funds: Institutional, SL Agency Shares     9,547,929       (7,405,579 )     2,142,350     $ 2,143,850     $ 116,562 (b)   $ 1,209     $ (600 )
BlackRock Cash Funds: Treasury, SL Agency Shares     35,000       (10,000 )     25,000       25,000       509              
                            $ 2,168,850     $ 117,071     $ 1,209     $ (600 )

 

(a) Includes realized capital gain distributions from an affiliated fund, if any.

(b) Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

 

Fair Value Measurements

 

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

 

S c h e d u l e  o f  I n v e s t m e n t s 23

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI Global Silver and Metals Miners ETF
February 29, 2020  

 

Fair Value Measurements (continued)

 

The following table summarizes the value of the Fund's investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund's investments into major categories is disclosed in the Schedule of Investments above.

 

    Level 1     Level 2     Level 3     Total  
Investments                        
Assets                        
Common Stocks   $ 85,961,755     $     $     $ 85,961,755  
Money Market Funds     2,168,850                   2,168,850  
    $ 88,130,605     $     $     $ 88,130,605  

See notes to financial statements.

 

24 2 0 2 0  I S h a r e s  S e m i - A n n u a l  R e p o r t  t o  S h a r e h o l d e r s

 

 

 

Statements of Assets and Liabilities (unaudited)

February 29, 2020

 

                      iShares  
    iShares     iShares           MSCI Global  
    MSCI Global     MSCI Global     iShares     Metals &  
    Agriculture     Energy     MSCI Global     Mining  
    Producers     Producers     Gold Miners     Producers  
    ETF     ETF     ETF     ETF  
                         
ASSETS                        
Investments in securities, at value (including securities on loan)(a)                                
Unaffiliated(b)   $ 24,121,653     $ 36,168,779     $ 380,473,332     $ 183,091,471  
Affiliated(c)     315,233       240,208       2,633,937       2,279,394  
Cash     666             864       113,323  
Foreign currency, at value(d)     16,244       26,702       152,918       144,058  
Cash pledged:                                
Futures contracts           20,000              
Receivables:                                
Investments sold     35,606       256,956       10,725,938       1,002,671  
Securities lending income — Affiliated     476       364       2,106       8,337  
Variation margin on futures contracts           2,196              
Capital shares sold           2,473       22,374,462       15,149  
Dividends     46,913       312,936       478,539       480,630  
Tax reclaims     2,638       2,685             38,638  
Total assets     24,539,429       37,033,299       416,842,096       187,173,671  
                                 
LIABILITIES                                
Bank overdraft           35,903              
Collateral on securities loaned, at value     285,060       239,924       2,545,472       2,275,102  
Deferred foreign capital gain tax     14,357                    
Payables:                                
Investments purchased     40,186       250,728       32,232,884       100,246  
Capital shares redeemed                       988,215  
Investment advisory fees     8,149       13,011       109,095       69,335  
Foreign taxes                       18  
Total liabilities     347,752       539,566       34,887,451       3,432,916  
                                 
NET ASSETS   $ 24,191,677     $ 36,493,733     $ 381,954,645     $ 183,740,755  
                                 
NET ASSETS CONSIST OF:                                
Paid-in capital   $ 29,942,472     $ 55,176,032     $ 431,180,307     $ 297,602,160  
Accumulated loss     (5,750,795 )     (18,682,299 )     (49,225,662 )     (113,861,405 )
NET ASSETS   $ 24,191,677     $ 36,493,733     $ 381,954,645     $ 183,740,755  
                                 
Shares outstanding     950,000       2,500,000       17,400,000       7,800,000  
Net asset value   $ 25.46     $ 14.60     $ 21.95     $ 23.56  
Shares authorized     500 million       500 million       500 million       500 million  
Par value   $ 0.001     $ 0.001     $ 0.001     $ 0.001  
                                 
(a) Securities loaned, at value   $ 270,021     $ 205,887     $ 1,636,392     $ 2,182,782  
(b) Investments, at cost — Unaffiliated   $ 26,313,262     $ 51,096,558     $ 387,383,982     $ 249,826,274  
(c) Investments, at cost — Affiliated   $ 315,134     $ 240,105     $ 2,632,733     $ 2,277,945  
(d) Foreign currency, at cost.   $ 16,563     $ 27,103     $ 155,676     $ 144,791  

 

See notes to financial statements.

 

F i n a n c i a l    S t a t e m e n t s 25

 

 

 

Statements of Assets and Liabilities (unaudited) (continued)

February 29, 2020

 

    iShares  
      MSCI Global  
      Silver and  
      Metals  
      Miners ETF  
         
ASSETS        
Investments in securities, at value (including securities on loan)(a)        
Unaffiliated(b)   $ 85,961,755  
Affiliated(c)     2,168,850  
Cash     382  
Foreign currency, at value(d)     798,646  
Receivables:        
Investments sold     13,211,996  
Securities lending income — Affiliated     13,303  
Dividends     20,774  
Total assets     102,175,706  
         
LIABILITIES        
Collateral on securities loaned, at value     2,139,564  
Payables:        
Investments purchased     14,094,280  
Investment advisory fees     30,340  
Total liabilities     16,264,184  
         
NET ASSETS   $ 85,911,522  
         
NET ASSETS CONSIST OF:        
Paid-in capital   $ 111,029,689  
Accumulated loss     (25,118,167 )
NET ASSETS   $ 85,911,522  
         
Shares outstanding     9,300,000  
Net asset value   $ 9.24  
Shares authorized     500 million  
Par value   $ 0.001  
         
(a) Securities loaned, at value   $ 1,777,393  
(b) Investments, at cost — Unaffiliated   $ 79,465,697  
(c) Investments, at cost — Affiliated   $ 2,167,443  
(d) Foreign currency, at cost   $ 803,335  

 

See notes to financial statements.

 

26 2 0 2 0  I S h a r e s  S e m i - A n n u a l  R e p o r t  t o  S h a r e h o l d e r s

 

 

 

Statements of Operations (unaudited)

Six Months Ended February 29, 2020

 

                      iShares  
    iShares     iShares           MSCI Global  
    MSCI Global     MSCI Global     iShares     Metals &  
    Agriculture     Energy     MSCI Global     Mining  
    Producers     Producers     Gold Miners     Producers  
    ETF     ETF     ETF     ETF  
                         
INVESTMENT INCOME                                
Dividends — Unaffiliated   $ 238,654     $ 1,032,903     $ 1,459,732     $ 3,828,788  
Dividends — Affiliated     237       666       1,821       2,035  
Interest — Unaffiliated           17              
Securities lending income — Affiliated — net     3,168       3,666       48,097       49,486  
Foreign taxes withheld     (19,444 )     (61,543 )     (104,019 )     (191,348 )
Total investment income     222,615       975,709       1,405,631       3,688,961  
                                 
EXPENSES                                
Investment advisory fees     51,612       90,156       599,002       434,861  
Commitment fees     20       27             104  
Total expenses     51,632       90,183       599,002       434,965  
Net investment income     170,983       885,526       806,629       3,253,996  
                                 
REALIZED AND UNREALIZED GAIN (LOSS)                                
Net realized gain (loss) from:                                
Investments — Unaffiliated(a)     (256,374 )     (1,128,122 )     (4,106,073 )     (4,315,620 )
Investments — Affiliated     6       (43 )     485       451  
In-kind redemptions — Unaffiliated           1,102,877       15,971,016       2,542,054  
Futures contracts           3,149              
Foreign currency transactions     436       2,307       2,965       9,487  
Net realized gain (loss)     (255,932 )     (19,832 )     11,868,393       (1,763,628 )
Net change in unrealized appreciation (depreciation) on:                                
Investments — Unaffiliated(b)     (1,008,519 )     (7,099,796 )     (55,245,823 )     (13,078,440 )
Investments — Affiliated     72       67       373       258  
Futures contracts           (61,505 )            
Foreign currency translations     (246 )     14       (4,262 )     (37,734 )
Net change in unrealized appreciation (depreciation)     (1,008,693 )     (7,161,220 )     (55,249,712 )     (13,115,916 )
Net realized and unrealized loss     (1,264,625 )     (7,181,052 )     (43,381,319 )     (14,879,544 )
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS   $ (1,093,642 )   $ (6,295,526 )   $ (42,574,690 )   $ (11,625,548 )
                                 
(a) Net of foreign capital gain tax of   $     $ 1,112     $     $  
(b) Net of deferred foreign capital gain tax of   $ 429     $     $     $  

 

See notes to financial statements.

 

F I N A N C I A L    S T A T E M E N T S 27

 

 

 

Statements of Operations (unaudited) (continued)

Six Months Ended February 29, 2020

 

    iShares  
      MSCI Global  
      Silver and  
      Metals  
      Miners ETF  
         
INVESTMENT INCOME        
Dividends — Unaffiliated   $ 287,209  
Dividends — Affiliated     509  
Securities lending income — Affiliated — net     116,562  
Foreign taxes withheld     (25,480 )
Total investment income     378,800  
         
EXPENSES        
Investment advisory fees     189,422  
Total expenses     189,422  
Net investment income     189,378  
         
REALIZED AND UNREALIZED GAIN (LOSS)        
Net realized gain (loss) from:        
Investments — Unaffiliated     (9,250,002 )
Investments — Affiliated     1,209  
In-kind redemptions — Unaffiliated     2,423,754  
Foreign currency transactions     1,298  
Net realized loss     (6,823,741 )
Net change in unrealized appreciation (depreciation) on:        
Investments — Unaffiliated     (6,653,224 )
Investments — Affiliated     (600 )
Foreign currency translations     (5,901 )
Net change in unrealized appreciation (depreciation)     (6,659,725 )
Net realized and unrealized loss     (13,483,466 )
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS   $ (13,294,088 )

 

See notes to financial statements.

 

28 2 0 2 0  I S h a r e s  S e m i - A n n u a l  R e p o r t  t o  S h a r e h o l d e r s

 

 

 

Statements of Changes in Net Assets

 

    iShares              
    MSCI Global Agriculture Producers     iShares  
    ETF     MSCI Global Energy Producers ETF  
    Six Months           Six Months        
    Ended           Ended        
    02/29/20     Year Ended     02/29/20     Year Ended  
    (unaudited)     08/31/19     (unaudited)     08/31/19  
                         
INCREASE (DECREASE) IN NET ASSETS                                
                                 
OPERATIONS                                
Net investment income   $ 170,983     $ 565,093     $ 885,526     $ 1,633,512  
Net realized loss     (255,932 )     (727,749 )     (19,832 )     (686,050 )
Net change in unrealized appreciation (depreciation)     (1,008,693 )     (1,730,016 )     (7,161,220 )     (10,616,256 )
Net decrease in net assets resulting from operations     (1,093,642 )     (1,892,672 )     (6,295,526 )     (9,668,794 )
                                 
DISTRIBUTIONS TO SHAREHOLDERS(a)                                
Decrease in net assets resulting from distributions to shareholders     (249,754 )     (581,369 )     (1,881,554 )     (1,510,562 )
                                 
CAPITAL SHARE TRANSACTIONS                                
Net increase (decrease) in net assets derived from capital share transactions     8       (5,512,108 )     (2,062,526 )     10,023,638  
                                 
NET ASSETS                                
Total decrease in net assets     (1,343,388 )     (7,986,149 )     (10,239,606 )     (1,155,718 )
Beginning of period     25,535,065       33,521,214       46,733,339       47,889,057  
End of period   $ 24,191,677     $ 25,535,065     $ 36,493,733     $ 46,733,339  

 

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

 

See notes to financial statements.

 

F I N A N C I A L    S T A T E M E N T S 29

 

 

 

Statements of Changes in Net Assets (continued)

 

                iShares  
    iShares     MSCI Global Metals & Mining  
    MSCI Global Gold Miners ETF     Producers ETF  
      Six Months               Six Months          
      Ended               Ended          
      02/29/20       Year Ended       02/29/20       Year Ended  
      (unaudited)       08/31/19       (unaudited)       08/31/19  
                                 
INCREASE (DECREASE) IN NET ASSETS                                
                                 
OPERATIONS                                
Net investment income   $ 806,629     $ 2,199,144     $ 3,253,996     $ 14,488,853  
Net realized gain (loss)     11,868,393       (26,319,717 )     (1,763,628 )     (16,757,109 )
Net change in unrealized appreciation (depreciation)     (55,249,712 )     141,307,485       (13,115,916 )     (30,948,847 )
Net increase (decrease) in net assets resulting from operations     (42,574,690 )     117,186,912       (11,625,548 )     (33,217,103 )
                                 
DISTRIBUTIONS TO SHAREHOLDERS(a)                                
Decrease in net assets resulting from distributions to shareholders     (662,296 )     (2,150,687 )     (5,812,275 )     (16,052,832 )
                                 
CAPITAL SHARE TRANSACTIONS                                
Net increase (decrease) in net assets derived from capital share transactions     99,907,572       (22,741,524 )     (20,291,561 )     (132,895,907 )
                                 
NET ASSETS                                
Total increase (decrease) in net assets     56,670,586       92,294,701       (37,729,384 )     (182,165,842 )
Beginning of period     325,284,059       232,989,358       221,470,139       403,635,981  
End of period   $ 381,954,645     $ 325,284,059     $ 183,740,755     $ 221,470,139  

 

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

 

See notes to financial statements.

 

30 2 0 2 0  I S h a r e s  S e m i - A n n u a l  R e p o r t  t o  S h a r e h o l d e r s

 

 

 

Statements of Changes in Net Assets (continued)

 

    iShares  
    MSCI Global Silver and Metals  
    Miners ETF  
      Six Months          
      Ended          
      02/29/20       Year Ended  
      (unaudited)       08/31/19  
                 
INCREASE (DECREASE) IN NET ASSETS                
                 
OPERATIONS                
Net investment income   $ 189,378     $ 575,030  
Net realized loss     (6,823,741 )     (8,711,851 )
Net change in unrealized appreciation (depreciation)     (6,659,725 )     27,278,361  
Net increase (decrease) in net assets resulting from operations     (13,294,088 )     19,141,540  
                 
DISTRIBUTIONS TO SHAREHOLDERS(a)                
Decrease in net assets resulting from distributions to shareholders     (1,767,698 )     (550,188 )
                 
CAPITAL SHARE TRANSACTIONS                
Net increase in net assets derived from capital share transactions     1,216,251       30,588,900  
                 
NET ASSETS                
Total increase (decrease) in net assets     (13,845,535 )     49,180,252  
Beginning of period     99,757,057       50,576,805  
End of period     85,911,522     $ 99,757,057  

 

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

 

See notes to financial statements.

 

F i n a n c i a l  S t a t e m e n t s 31

 

 

 

 

Financial Highlights

(For a share outstanding throughout each period)

 

    iShares MSCI Global Agriculture Producers ETF  
    Six Months Ended                                          
      02/29/20       Year Ended       Year Ended       Year Ended       Year Ended       Year Ended  
      (unaudited)       08/31/19       08/31/18       08/31/17       08/31/16       08/31/15  
                                                 
Net asset value, beginning of period   $ 26.88     $ 29.15     $ 27.08     $ 24.31     $ 24.03     $ 27.29  
Net investment income(a)     0.18       0.53       0.53       0.45       0.54       0.50  
Net realized and unrealized gain (loss)(b)     (1.34 )     (2.25 )     2.03       2.81       0.27       (3.21 )
Net increase (decrease) from investment operations     (1.16 )     (1.72 )     2.56       3.26       0.81       (2.71 )
                                                 
Distributions(c)                                                
From net investment income     (0.26 )     (0.55 )     (0.49 )     (0.49 )     (0.53 )     (0.55 )
Total distributions     (0.26 )     (0.55 )     (0.49 )     (0.49 )     (0.53 )     (0.55 )
Net asset value, end of period   $ 25.46     $ 26.88     $ 29.15     $ 27.08     $ 24.31     $ 24.03  
                                                 
Total Return                                                
Based on net asset value     (4.37 )%(d)     (5.88 )%     9.49 %     13.53 %     3.55 %     (10.11 )%
                                                 
Ratios to Average Net Assets                                                
Total expenses     0.39 %(e)     0.39 %     0.39 %     0.39 %     0.39 %     0.39 %
Total expenses after fees waived     0.39 %(e)     0.39 %     0.37 %     0.37 %     0.38 %     0.38 %
Net investment income     1.29 %(e)     1.88 %     1.84 %     1.76 %     2.38 %     1.87 %
                                                 
Supplemental Data                                                
Net assets, end of period (000)   $ 24,192     $ 25,535     $ 33,521     $ 28,434     $ 27,951     $ 27,640  
Portfolio turnover rate(f)     2 %(d)     13 %     25 %     16 %     7 %     10 %

 

(a) Based on average shares outstanding.
(b) The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.
(c) Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(d) Not annualized.

(e) Annualized.
(f) Portfolio turnover rate excludes in-kind transactions.

 

See notes to financial statements.

 

32 2 0 2 0  I S h a r e s  S e m i - A n n u a l  R e p o r t  t o  S h a r e h o l d e r s

 

 

 

 

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    iShares MSCI Global Energy Producers ETF  
      Six Months Ended                                          
      02/29/20       Year Ended       Year Ended       Year Ended       Year Ended       Year Ended  
      (unaudited)       08/31/19       08/31/18       08/31/17       08/31/16       08/31/15  
                                                 
Net asset value, beginning of period   $ 17.97     $ 22.80     $ 18.57     $ 18.72     $ 17.67     $ 28.06  
Net investment income(a)     0.35       0.70       0.64       0.60       0.59       0.68  
Net realized and unrealized gain (loss)(b)     (2.95 )     (4.90 )     4.23       (0.16 )     1.00       (10.61 )
Net increase (decrease) from investment operations     (2.60 )     (4.20 )     4.87       0.44       1.59       (9.93 )
                                                 
Distributions(c)                                                
From net investment income     (0.77 )     (0.63 )     (0.64 )     (0.59 )     (0.54 )     (0.46 )
Total distributions     (0.77 )     (0.63 )     (0.64 )     (0.59 )     (0.54 )     (0.46 )
Net asset value, end of period   $ 14.60     $ 17.97     $ 22.80     $ 18.57     $ 18.72     $ 17.67  
                                                 
Total Return                                                
Based on net asset value     (15.40 )%(d)     (18.56 )%     26.48 %     2.26 %     9.31 %     (35.63 )%
                                                 
Ratios to Average Net Assets                                                
Total expenses     0.39 %(e)     0.39 %     0.39 %     0.39 %     0.39 %     0.39 %
Net investment income     3.83 %(e)     3.41 %     2.93 %     3.10 %     3.36 %     3.23 %
                                                 
Supplemental Data                                                
Net assets, end of period (000)   $ 36,494     $ 46,733     $ 47,889     $ 31,568     $ 37,440     $ 24,739  
Portfolio turnover rate(f)     4 %(d)     6 %     5 %     4 %     6 %     4 %

 

(a) Based on average shares outstanding.
(b) The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.
(c) Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(d) Not annualized.

(e) Annualized.
(f) Portfolio turnover rate excludes in-kind transactions.

 

See notes to financial statements.

 

F i n a n c i a l  H i g h l i g h t s 33

 

 

 

 

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    iShares MSCI Global Gold Miners ETF  
      Six Months Ended                                          
      02/29/20       Year Ended       Year Ended       Year Ended       Year Ended       Year Ended  
      (unaudited)       08/31/19      

 08/31/18

      08 /31/17 (a)     08 /31/16 (a)     08 /31/15 (a)
                                                 
Net asset value, beginning of period   $ 24.01     $ 14.43     $ 19.96     $ 21.20     $ 11.13     $ 22.53  
Net investment income(b)     0.06       0.18       0.10       0.06       0.02       0.14  
Net realized and unrealized gain (loss)(c)     (2.07 )     9.59       (5.51 )     (1.04 )     10.11       (11.42 )
Net increase (decrease) from investment operations     (2.01 )     9.77       (5.41 )     (0.98 )     10.13       (11.28 )
                                                 
Distributions(d)                                                
From net investment income     (0.05 )     (0.19 )     (0.12 )     (0.26 )     (0.06 )     (0.12 )
Total distributions     (0.05 )     (0.19 )     (0.12 )     (0.26 )     (0.06 )     (0.12 )
Net asset value, end of period   $ 21.95     $ 24.01     $ 14.43     $ 19.96     $ 21.20     $ 11.13  
                                                 
Total Return                                                
Based on net asset value     (8.36 )%(e)     68.13 %     (27.22 )%     (4.30 )%     91.17 %     (50.16 )%
                                                 
Ratios to Average Net Assets                                                
Total expenses     0.39 %(f)     0.39 %     0.39 %     0.39 %     0.39 %     0.39 %
Net investment income     0.53 %(f)     1.04 %     0.56 %     0.38 %     0.06 %     0.88 %
                                                 
Supplemental Data                                                
Net assets, end of period (000)   $ 381,955     $ 325,284     $ 232,989     $ 391,247     $ 266,108     $ 45,926  
Portfolio turnover rate(g)     6 %(e)     15 %     4 %     26 %     30 %     20 %

 

(a) Per share amounts reflect a one-for-two reverse stock split effective after the close of trading on November 4, 2016.
(b) Based on average shares outstanding.
(c) The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.
(d) Distributions for annual periods determined in accordance with U.S. federal income tax regulations.
(e) Not annualized.
(f) Annualized.
(g) Portfolio turnover rate excludes in-kind transactions.

 

See notes to financial statements.

 

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Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    iShares MSCI Global Metals & Mining Producers ETF  
      Six Months Ended                                          
      02/29/20       Year Ended       Year Ended       Year Ended       Year Ended       Year Ended  
      (unaudited)       08/31/19       08/31/18       08 /31/17 (a)     08 /31/16 (a)     08 /31/15 (a)
                                                 
Net asset value, beginning of period   $ 25.60     $ 30.93     $ 31.86     $ 21.67     $ 21.30     $ 40.37  
Net investment income(b)     0.41       1.49       1.06       0.53       0.42       1.62  
Net realized and unrealized gain (loss)(c)     (1.71 )     (5.13 )     (1.05 )     10.26       0.41       (17.91 )
Net increase (decrease) from investment operations     (1.30 )     (3.64 )     0.01       10.79       0.83       (16.29 )
                                                 
Distributions(d)                                                
From net investment income     (0.74 )     (1.69 )     (0.94 )     (0.60 )     (0.46 )     (2.78 )
Total distributions     (0.74 )     (1.69 )     (0.94 )     (0.60 )     (0.46 )     (2.78 )
Net asset value, end of period   $ 23.56     $ 25.60     $ 30.93     $ 31.86     $ 21.67     $ 21.30  
                                                 
Total Return                                                
Based on net asset value     (5.67 )%(e)     (12.16 )%     (0.10 )%     50.55 %     4.52 %     (41.94 )%
                                                 
Ratios to Average Net Assets                                                
Total expenses     0.39 %(f)     0.39 %     0.39 %     0.39 %     0.39 %     0.39 %
Total expenses after fees waived     0.39 %(f)     0.39 %     0.39 %     0.39 %     0.39 %     0.39 %
Net investment income     2.92 %(f)     5.05 %     3.15 %     2.31 %     2.16 %     5.18 %
                                                 
Supplemental Data                                                
Net assets, end of period (000)   $ 183,741     $ 221,470     $ 403,636     $ 347,259     $ 223,182     $ 69,219  
Portfolio turnover rate(g)     5 %(e)     14 %     14 %     12 %     8 %     17 %

 

(a) Per share amounts reflect a one-for-two reverse stock split effective after the close of trading on November 4, 2016.
(b) Based on average shares outstanding.
(c) The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.
(d) Distributions for annual periods determined in accordance with U.S. federal income tax regulations.
(e) Not annualized.
(f) Annualized.
(g) Portfolio turnover rate excludes in-kind transactions.

 

See notes to financial statements.

 

F i n a n c i a l  H i g h l i g h t s 35

 

 

 

 

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    iShares MSCI Global Silver and Metals Miners ETF  
      Six Months Ended                                          
      02/29/20       Year Ended       Year Ended       Year Ended       Year Ended       Year Ended  
      (unaudited)       08/31/19       08/31/18       08/31/17       08/31/16       08/31/15  
                                                 
Net asset value, beginning of period   $ 10.84     $ 8.43     $ 11.47     $ 13.61     $ 6.14     $ 12.70  
Net investment income(a)     0.02       0.09       0.10       0.09       0.05       0.05  
Net realized and unrealized gain (loss)(b)     (1.43 )     2.40       (3.05 )     (1.94 )     7.44       (6.42 )
Net increase (decrease) from investment operations     (1.41 )     2.49       (2.95 )     (1.85 )     7.49       (6.37 )
                                                 
Distributions(c)                                                
From net investment income     (0.19 )     (0.08 )     (0.09 )     (0.29 )     (0.02 )     (0.19 )
Total distributions     (0.19 )     (0.08 )     (0.09 )     (0.29 )     (0.02 )     (0.19 )
Net asset value, end of period   $ 9.24     $ 10.84     $ 8.43     $ 11.47     $ 13.61     $ 6.14  
                                                 
Total Return                                                
Based on net asset value     (13.19 )%(d)     29.89 %     (25.87 )%     (13.26 )%     122.11 %     (50.51 )%
                                                 
Ratios to Average Net Assets                                                
Total expenses     0.39 %(e)     0.39 %     0.39 %     0.39 %     0.39 %     0.39 %
Net investment income     0.39 %(e)     0.98 %     0.94 %     0.79 %     0.47 %     0.57 %
                                                 
Supplemental Data                                                
Net assets, end of period (000)   $ 85,912     $ 99,757     $ 50,577     $ 64,258     $ 87,078     $ 12,279  
Portfolio turnover rate(f)     24 %(d)     27 %     19 %     14 %     27 %     31 %

 

(a) Based on average shares outstanding.
(b) The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.
(c) Distributions for annual periods determined in accordance with U.S. federal income tax regulations.
(d) Not annualized.
(e) Annualized.
(f) Portfolio turnover rate excludes in-kind transactions.

 

See notes to financial statements.

 

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Notes to Financial Statements (unaudited)

 

1. ORGANIZATION

 

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

 

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

 

  Diversification
iShares ETF Classification
MSCI Global Agriculture Producers Non-diversified
MSCI Global Energy Producers Non-diversified
MSCI Global Gold Miners Non-diversified
MSCI Global Metals & Mining Producers Non-diversified
MSCI Global Silver and Metals Miners Non-diversified

 

2. SIGNIFICANT ACCOUNTING POLICIES

 

The following significant accounting policies are consistently followed by each Fund in the preparation of its financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies.

 

Investment Transactions and Income Recognition: Investment transactions are accounted for on trade date. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recognized on the ex-dividend date, net of any foreign taxes withheld at source. Any taxes withheld that are reclaimable from foreign tax authorities are reflected in tax reclaims receivable. Distributions received by the Funds may include a return of capital that is estimated by management. Such amounts are recorded as a reduction of the cost of investments or reclassified to capital gains. Upon notification from issuers, some of the dividend income received from a real estate investment trust may be re-designated as a return of capital or capital gain. Non-cash dividends, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Interest income is accrued daily.

 

Foreign Currency Translation: The accounting records of the Funds are maintained in U.S. dollars. Foreign currencies, as well as investment securities and other assets and liabilities denominated in non-U.S. currencies are translated to U.S. dollars using prevailing market rates as quoted by one or more data service providers. Purchases and sales of investments, income receipts and expense payments are translated into U.S. dollars on the respective dates of such transactions.

 

Each Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of investments. Such fluctuations are reflected by the Funds as a component of net realized and unrealized gain (loss) from investments for financial reporting purposes. Each Fund reports realized currency gain (loss) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for U.S. federal income tax purposes.

 

Foreign Taxes: The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which each Fund invests. These foreign taxes, if any, are paid by each Fund and are reflected in its statement of operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of February 29, 2020, if any, are disclosed in the statement of assets and liabilities.

 

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

 

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

 

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

 

N o t e s  t o  F i n a n c i a l  S t a t e m e n t s 37

 

 

 

 

Notes to Financial Statements (unaudited) (continued)

 

3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

 

Investment Valuation Policies: Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date should the reporting period end on a day that the Fund’s listing exchange is not open. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. A fund determines the fair value of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Directors of the Company (the “Board”). The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.

 

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

Equity investments traded on a recognized securities exchange are valued at that day’s last traded price or official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price.
Investments in open-end U.S. mutual funds (including money market funds) are valued at that day’s published net asset value (“NAV”).
Futures contract notional values are determined based on that day’s last reported settlement price on the exchange where the contract is traded.

 

If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of an investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with policies approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee include market approach, income approach and the cost approach. Valuation techniques used under these approaches take into consideration inputs that include but are not limited to (i) attributes specific to the investment; (ii) the principal market for the investment; (iii) the customary participants in the principal market for the investment; (iv) data assumptions by market participants for the investment, if reasonably available; (v) quoted prices for similar investments in active markets; and (vi) other inputs, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or default rates.

 

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.

 

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

 

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

Level 1 – Unadjusted price quotations in active markets for identical assets or liabilities;
Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; and
Level 3 – Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, (including the Global Valuation Committee’s assumptions used in determining the fair value of financial instruments).

 

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgement exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The fair value hierarchy for each Fund’s investments is included in its schedule of investments. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

 

4. SECURITIES AND OTHER INVESTMENTS

 

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

 

As of February 29, 2020, any securities on loan were collateralized by cash and/or U.S. government obligations. Cash collateral received was invested in money market funds managed by BlackRock Fund Advisors (“BFA”), the Funds' investment adviser, or its affiliates and is disclosed in the schedules of investments. Any non-cash collateral

 

38 2 0 2 0  I S h a r e s  S e m i - A n n u a l  R e p o r t  t o  S h a r e h o l d e r s

 

 

 

 

Notes to Financial Statements (unaudited) (continued)

 

received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan for each Fund, if any, are also disclosed in its schedule of investments. The market value of any securities on loan as of February 29, 2020 and the value of the related cash collateral are disclosed in the statements of assets and liabilities.

 

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

 

The following table is a summary of the securities lending agreements by counterparty which are subject to offset under an MSLA as of February 29, 2020:

 

    Market Value of     Cash Collateral     Non-Cash Collateral        
iShares ETF and Counterparty   Securities on Loan     Received (a)   Received     Net Amount  
MSCI Global Agriculture Producers                                
Barclays Capital Inc.   $ 99,304     $ 99,304     $     $  
Credit Suisse AG Dublin Branch     1,907       1,907              
Credit Suisse Securities (USA) LLC     6,115       6,115              
Goldman Sachs & Co.     132,453       132,453              
Macquarie Bank Limited     9,787       9,787              
SG Americas Securities LLC     20,455       20,455              
    $ 270,021     $ 270,021     $     $  
MSCI Global Energy Producers                                
Barclays Bank PLC   $ 6,317     $ 6,317     $     $  
Barclays Capital Inc.     17,850       17,252             (598 )(b)
BofA Securities, Inc.     11,567       11,567              
Citigroup Global Markets Inc.     24,166       24,166              
Credit Suisse AG Dublin Branch     8,640       8,640              
Credit Suisse Securities (USA) LLC     12,569       12,569              
Goldman Sachs & Co.     6,574       6,574              
JPMorgan Securities LLC     16,739       16,739              
Morgan Stanley & Co. LLC     50,105       50,105              
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending)     20,085       19,583             (502 )(b)
Nomura Securities International Inc.     724       724              
Scotia Capital (USA) Inc.     3,683       3,683              
SG Americas Securities LLC     5,339       5,339              
UBS AG     3,646       3,646              
Wells Fargo Bank, National Association     17,883       17,883              
    $ 205,887     $ 204,787     $     $ (1,100 )
MSCI Global Gold Miners                                
Goldman Sachs & Co.   $ 254,119     $ 254,119     $     $  
HSBC Bank PLC     1,226,273       1,226,273              
Wells Fargo Bank, National Association     156,000       156,000              
    $ 1,636,392     $ 1,636,392     $     $  
MSCI Global Metals & Mining Producers                                
Barclays Bank PLC   $ 465,198     $ 460,438     $     $ (4,760 )(b)
BMO Capital Markets     5,040       5,040              
BofA Securities, Inc.     212,385       212,385              
Credit Suisse AG Dublin Branch     571,323       571,323              
Credit Suisse Securities (USA) LLC     60,227       60,227              
JPMorgan Securities LLC     125,982       125,982              
Macquarie Bank Limited     68,297       68,297              
Morgan Stanley & Co. LLC     669,260       669,260              
UBS Securities LLC     5,070       5,070              
    $ 2,182,782     $ 2,178,022     $     $ (4,760 )

 

N o t e s  t o  F i n a n c i a l  S t a t e m e n t s 39

 

 

 

 

Notes to Financial Statements (unaudited) (continued)

 

    Market Value of     Cash Collateral     Non-Cash Collateral        
iShares ETF and Counterparty   Securities on Loan     Received (a)   Received     Net Amount  
MSCI Global Silver and Metals Miners                                
Barclays Capital Inc.   $ 50,298     $ 50,298     $     $  
BofA Securities, Inc.     86,619       86,619              
Citigroup Global Markets Inc.     653,536       653,536              
Goldman Sachs & Co.     174,649       174,649              
JPMorgan Securities LLC     130,556       130,556              
Morgan Stanley & Co. LLC     162,499       162,499              
Scotia Capital (USA) Inc.     203,226       203,226              
UBS AG     7,754       7,754              
Wells Fargo Bank, National Association     308,256       308,256              
    $ 1,777,393     $ 1,777,393     $     $  

 

(a) Collateral received in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by each Fund is disclosed in the Fund's statement of assets and liabilities.
(b) 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 a counterparty.

 

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

 

5. DERIVATIVE FINANCIAL INSTRUMENTS

 

Futures Contracts: Each Fund’s use of futures contracts is generally limited to cash equitization. This involves the use of available cash to invest in index futures contracts in order to gain exposure to the equity markets represented in or by the Fund’s underlying index and is intended to allow the Fund to better track its underlying index. Futures contracts are standardized, exchange-traded agreements to buy or sell a specific quantity of an underlying instrument at a set price on a future date. Depending on the terms of a contract, a futures contract is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date.

 

Upon entering into a futures contract, a fund is required to pledge to the executing broker which holds segregated from its own assets, an amount of cash, U.S. government securities or other high-quality debt and equity securities equal to the minimum initial margin requirements of the exchange on which the contract is traded. Securities deposited as initial margin, if any, are designated in the schedule of investments and cash deposited, if any, is shown as cash pledged for futures contracts in the statement of assets and liabilities.

 

Pursuant to the contract, a fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation or depreciation and, if any, shown as variation margin receivable or payable on futures contracts in the statement of assets and liabilities. When the contract is closed, a realized gain or loss is recorded in the statement of operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. Losses may arise if the notional value of a futures contract decreases due to an unfavorable change in the market rates or values of the underlying instrument during the term of the contract or if the counterparty does not perform under the contract. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and the assets underlying such contracts.

 

6. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

 

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

 

For its investment advisory services to each Fund, BFA is entitled to an annual investment advisory fee of 0.39%, accrued daily and paid monthly by the Funds, based on the average daily net assets of each Fund.

 

Expense Waivers: A fund may incur its pro rata share of fees and expenses attributable to its investments in other investment companies (“acquired fund fees and expenses”). For each of the iShares MSCI Global Agriculture Producers and iShares MSCI Global Metals & Mining Producers ETFs, BFA has contractually agreed to waive a portion of its investment advisory fee for each Fund through December 31, 2023 in an amount equal to the acquired fund fees and expenses, if any, attributable to each Fund’s investments in other iShares funds.

 

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

 

 

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Notes to Financial Statements (unaudited) (continued)

 

Securities Lending: The U.S. Securities and Exchange Commission (the “SEC”) has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan in a money market fund managed by BFA, or its affiliates, however, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees each Fund bears to an annual rate of 0.04% (the “collateral investment fees”). Securities lending income is equal to the total of income earned from the reinvestment of cash collateral (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. Each Fund retains a portion of securities lending income and remits the remaining portion to BTC as compensation for its services as securities lending agent.

 

Pursuant to the current securities lending agreement, each Fund retains 82% of securities lending income (which excludes collateral investment fees) and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

 

In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across all 1940 Act iShares exchange-traded funds (the “iShares ETF Complex”) in that calendar year exceeds a specified threshold, each Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year 85% of securities lending income (which excludes collateral investment fees), and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

 

The share of securities lending income earned by each Fund is shown as securities lending income – affiliated – net in its statement of operations. For the six months ended February 29, 2020, the Funds paid BTC the following amounts for securities lending agent services:

 

    Fees Paid  
iShares ETF   to BTC  
MSCI Global Agriculture Producers   $ 752  
MSCI Global Energy Producers     889  
MSCI Global Gold Miners     11,512  
MSCI Global Metals & Mining Producers     11,748  
MSCI Global Silver and Metals Miners     27,053  

 

Officers and Directors: Certain officers and/or directors of the Company are officers and/or directors of BlackRock or its affiliates.

 

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

 

For the six months ended February 29, 2020, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:

 

                Net Realized  
iShares ETF   Purchases     Sales     Gain (Loss)  
MSCI Global Agriculture Producers   $     $ 33,700     $ (12,021 )
MSCI Global Energy Producers     25,140       103,463       (63,885 )
MSCI Global Gold Miners     1,491,553       3,152,140       (625,594 )
MSCI Global Metals & Mining Producers     46,471       178,536       (207,931 )
MSCI Global Silver and Metals Miners     3,218,920       1,959,712       (1,038,071 )

 

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

 

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

 

7. PURCHASES AND SALES

  

For the six months ended February 29, 2020, purchases and sales of investments, excluding in-kind transactions and short-term investments, were as follows:

 

iShares ETF   Purchases     Sales  
MSCI Global Agriculture Producers   $ 512,181     $ 553,465  
MSCI Global Energy Producers     1,990,382       2,824,807  
MSCI Global Gold Miners     22,798,959       18,416,345  
MSCI Global Metals & Mining Producers     10,208,573       14,846,396  
MSCI Global Silver and Metals Miners     22,759,133       23,048,627  

 

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Notes to Financial Statements (unaudited) (continued)

 

For the six months ended February 29, 2020, in-kind transactions were as follows:

    In-kind     In-kind  
iShares ETF   Purchases     Sales  
MSCI Global Energy Producers   $ 5,340,627     $ 7,239,526  
MSCI Global Gold Miners     154,881,768       59,959,154  
MSCI Global Metals & Mining Producers     19,735,262       36,783,221  
MSCI Global Silver and Metals Miners     6,394,966       6,202,527  

 

8. INCOME TAX INFORMATION

 

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

 

Management has analyzed tax laws and regulations and their application to the Funds as of February 29, 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.

 

As of August 31, 2019, the Funds had non-expiring capital loss carryforwards available to offset future realized capital gains as follows:

 

iShares ETF   Non-Expiring  
MSCI Global Agriculture Producers   $ 2,807,927  
MSCI Global Energy Producers     2,230,448  
MSCI Global Gold Miners     43,645,352  
MSCI Global Metals & Mining Producers     38,149,859  
MSCI Global Silver and Metals Miners     17,475,006  

 

A fund may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” Such fund may elect to mark-to-market annually the shares of each passive foreign investment company and would be required to distribute to shareholders any such marked-to-market gains.

 

As of February 29, 2020, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:

 

                      Net Unrealized  
          Gross Unrealized     Gross Unrealized     Appreciation  
iShares ETF   Tax Cost     Appreciation     Depreciation     (Depreciation)  
MSCI Global Agriculture Producers   $ 27,131,908     $ 2,862,666     $ (5,557,688 )   $ (2,695,022 )
MSCI Global Energy Producers     53,076,177       983,169       (17,711,864 )     (16,728,695 )
MSCI Global Gold Miners     400,889,832       20,586,147       (38,368,710 )     (17,782,563 )
MSCI Global Metals & Mining Producers     258,837,024       11,581,786       (85,047,945 )     (73,466,159 )
MSCI Global Silver and Metals Miners     89,305,465       13,309,013       (14,483,873 )     (1,174,860 )

 

9. LINE OF CREDIT

 

The iShares MSCI Global Agriculture Producers, iShares MSCI Global Energy Producers and iShares MSCI Global Metals & Mining Producers ETFs, along with certain other iShares funds, are parties to a $300 million credit agreement with State Street Bank and Trust Company, which expires on October 21, 2020. The line of credit may be used for temporary or emergency purposes, including redemptions, settlement of trades and rebalancing of portfolio holdings. The credit agreement has the following terms: a commitment fee of 0.20% per annum on the unused portion of the credit agreement and interest at a rate equal to the higher of (a) the one-month LIBOR (not less than zero) plus 1.00% per annum or (b) the U.S. Federal Funds rate (not less than zero) plus 1.00% per annum on amounts borrowed. The commitment fee is allocated to each fund participating in the credit agreement based on each fund’s pro-rata share of the aggregate average daily value of assets invested in local securities of certain foreign markets.

 

The Funds did not borrow under the credit agreement during the six months ended February 29, 2020.

 

10. PRINCIPAL RISKS

 

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

 

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Notes to Financial Statements (unaudited) (continued)

 

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

 

Market Risk: Market risk arises mainly from uncertainty about future values of financial instruments influenced by price, currency and interest rate movements. It represents the potential loss a fund may suffer through holding market positions in the face of market movements. A fund is exposed to market risk by its investment in equity, fixed income and/or financial derivative instruments or by its investment in underlying funds. The fair value of securities held by a fund may decline due to general market conditions, economic trends or events that are not specifically related to the issuers of the securities including local, regional or global political, social or economic instability or to factors that affect a particular industry or group of industries. 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. The extent of a fund’s exposure to market risk is the market value of the investments held as shown in the fund’s schedule of investments.

 

Investing in the securities of non-U.S. issuers involves certain considerations and risks not typically associated with securities of U.S. issuers. Such risks include, but are not limited to: differences in accounting, auditing and financial reporting standards; more substantial governmental involvement in the economy; higher inflation rates, greater social, economic and political uncertainties; possible nationalization or expropriation of assets; less availability of public information about issuers; imposition of withholding or other taxes; higher transaction and custody costs and delays in settlement procedures; and lower level of regulation of the securities markets and issuers. Non-U.S. securities may be less liquid, more difficult to value, and have greater price volatility due to exchange rate fluctuations. These and other risks are heightened for investments in issuers from countries with less developed capital markets.

 

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 impact of the pandemic may be short term or may last for an extended period of time.

 

Credit Risk: Credit risk is the risk that an issuer or guarantor of debt instruments or the counterparty to a financial transaction, including derivatives contracts, repurchase agreements or loans of portfolio securities, is unable or unwilling to make timely interest and/or principal payments or to otherwise honor its obligations. BFA and its affiliates manage counterparty credit risk by entering into transactions only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose a fund to issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of a fund’s exposure to credit and counterparty risks with respect to those financial assets is approximated by their value recorded in its statement of assets and liabilities.

 

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

 

When a fund concentrates its investments in issuers located in a single country or a limited number of countries, it assumes the risk that economic, regulatory, political and social conditions in that country or those countries may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio.

 

When a fund concentrates its investments in securities within a single or limited number of market sectors, it assumes the risk that economic, regulatory, political and social conditions affecting such sectors may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio.

 

11. CAPITAL SHARE TRANSACTIONS

 

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

 

Transactions in capital shares were as follows:

 

    Six Months Ended     Year Ended  
    02/29/20     08/31/19  
iShares ETF     Shares       Amount       Shares       Amount  
MSCI Global Agriculture Producers                                
Shares sold         $ 8           $ 359  
Shares redeemed                 (200,000 )     (5,512,467 )
Net increase(decrease)         $ 8       (200,000 )   $ (5,512,108 )
MSCI Global Energy Producers                                
Shares sold     300,000     $ 5,729,462       600,000     $ 11,989,843  
Shares redeemed     (400,000 )     (7,791,988 )     (100,000 )     (1,966,205 )
Net increase(decrease)     (100,000 )   $ (2,062,526 )     500,000     $ 10,023,638  

 

N o t e s  t o  F i n a n c i a l  S t a t e m e n t s 43 

 

 

 

 

Notes to Financial Statements (unaudited) (continued)

 

    Six Months Ended     Year Ended  
    02/29/20     08/31/19  
iShares ETF     Shares       Amount       Shares       Amount  
MSCI Global Gold Miners                                
Shares sold     6,600,000     $ 161,876,354       5,300,000     $ 103,615,697  
Shares redeemed     (2,750,000 )     (61,968,782 )     (7,900,000 )     (126,357,221 )
Net increase(decrease)     3,850,000     $ 99,907,572       (2,600,000 )   $ (22,741,524 )
MSCI Global Metals & Mining Producers                                
Shares sold     800,000     $ 23,942,432       2,600,000     $ 74,143,858  
Shares redeemed     (1,650,000 )     (44,233,993 )     (7,000,000 )     (207,039,765 )
Net decrease     (850,000 )   $ (20,291,561 )     (4,400,000 )   $ (132,895,907 )
MSCI Global Silver and Metals Miners                                
Shares sold     700,000     $ 7,452,552       3,200,000     $ 30,588,900  
Shares redeemed     (600,000 )     (6,236,301 )            
Net increase     100,000     $ 1,216,251       3,200,000     $ 30,588,900  

 

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

 

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

 

12. LEGAL PROCEEDINGS

 

On June 16, 2016, investors in certain iShares funds (iShares Core S&P Small-Cap ETF, iShares Russell 1000 Growth ETF, iShares Core S&P 500 ETF, iShares Russell Mid-Cap Growth ETF, iShares Russell Mid-Cap ETF, iShares Russell Mid-Cap Value ETF, iShares Select Dividend ETF, iShares Morningstar Mid-Cap ETF, iShares Morningstar Large-Cap ETF, iShares U.S. Aerospace & Defense ETF and iShares Preferred and Income Securities ETF) filed a class action lawsuit against iShares Trust, BlackRock, Inc. and certain of its advisory affiliates, and certain directors/trustees and officers of the Funds (collectively, “Defendants”) in California State Court. The lawsuit alleges the Defendants violated federal securities laws by failing to adequately disclose in the prospectuses issued by the funds noted above the risks of using stop-loss orders in the event of a ‘flash crash’, such as the one that occurred on May 6, 2010. On September 18, 2017, the court issued a Statement of Decision holding that the Plaintiffs lack standing to assert their claims. On October 11, 2017, the court entered final judgment dismissing all of the Plaintiffs’ claims with prejudice. In an opinion dated January 23, 2020, the California Court of Appeal affirmed the dismissal of Plaintiffs’ claims. On March 3, 2020, plaintiffs filed a petition for review by the California Supreme Court.

 

13. SUBSEQUENT EVENTS

 

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

 

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Statement Regarding Liquidity Risk Management Program

 

The Securities and Exchange Commission adopted Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”) to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders.

 

The Board of Directors (the “Board”) of iShares MSCI Global Agriculture Producers ETF, iShares MSCI Global Energy Producers ETF, iShares MSCI Global Gold Miners ETF, iShares MSCI Global Metals & Mining Producers ETF and iShares MSCI Global Silver and Metals Miners ETF met on December 3, 2019 (the “Meeting”) to review the liquidity risk management program (the “Program”) applicable to the iShares Funds (each, a “Fund”) pursuant to the Liquidity Rule. The Board has appointed BlackRock Fund Advisors (“BlackRock”), the investment adviser to the Funds, as the program administrator for each Fund’s Program, as applicable. BlackRock has delegated oversight of the Program to the 40 Act Liquidity Risk Management Committee (the “Committee”). At the Meeting, the Committee, on behalf of BlackRock, provided the Board with a report that addressed the operation of the Program and assessed its adequacy and effectiveness of implementation, including the operation of each Fund’s Highly Liquid Investment Minimum (“HLIM”) where applicable, and any material changes to the Program (the “Report”). The Report covered the period from December 1, 2018 through September 30, 2019 (the “Program Reporting Period”).

 

The Report described the Program’s liquidity classification methodology for categorizing a Fund’s investments (including derivative transactions) into one of four liquidity buckets. It also described BlackRock’s methodology in establishing a Fund’s HLIM and noted that the Committee reviews and ratifies the HLIM assigned to each Fund no less frequently than annually.

 

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

 

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

 

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

 

c) Holdings of cash and cash equivalents, as well as borrowing arrangements. The Committee considered that ETFs generally do not hold more than de minimus amounts of cash. Funds may borrow for temporary or emergency purposes, including to meet payments due from redemptions or to facilitate the settlement of securities or other transactions.

 

d) The relationship between an ETF’s portfolio liquidity and the way in which, and the prices and spreads at which, ETF shares trade, including the efficiency of the arbitrage function and the level of active participation by market participants, including authorized participants. The Committee monitored the prevailing bid/ask spread and the ETF price premium (or discount) to NAV for all ETFs and reviewed any persistent deviations from long-term averages.

 

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

 

There were no material changes to the Program during the Program Reporting Period. The Report provided to the Board stated that the Committee concluded that based on the operation of the functions, as described in the Report, the Program is operating as intended and is effective in implementing the requirements of the Liquidity Rule.

 

S t a t e m e n t  R e g a r d i n g  L i q u i d i t y  R i s k  M a n a g e m e n t  P r o g r a m 45

 

 

 

 

Supplemental Information (unaudited)

 

Section 19(a) Notices

 

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

 

    Total Cumulative Distributions     % Breakdown of the Total Cumulative  
    for the Fiscal Year-to-Date     Distributions for the Fiscal Year-to-Date  
    Net                         Net                          
    Investment   Net Realized   Return of     Total Per     Investment     Net Realized     Return of     Total Per  
iShares ETF   Income   Gains   Capital     Share     Income     Capital Gains     Capital     Share  
MSCI Global Agriculture Producers(a)   $ 0.203504   $   $ 0.059395     $ 0.262899       77 %     %     23 %     100 %
MSCI Global Energy Producers(a)     0.729081         0.038900       0.767981       95             5       100  
MSCI Global Metals & Mining Producers(a)     0.648298         0.093157       0.741455       87             13       100  

 

(a) The Fund estimates that it has distributed more than its net investment income and net realized capital gains; therefore, a portion of the distribution may be a return of capital. A return of capital may occur, for example, when some or all of the shareholder's investment in the Fund is returned to the shareholder. A return of capital does not necessarily reflect the Fund's investment performance and should not be confused with "yield" or "income". When distributions exceed total return performance, the difference will incrementally reduce the Fund's net asset value per share.

 

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General Information

 

Electronic Delivery

 

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

 

To enroll in electronic delivery:

 

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

 

Householding

 

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

 

Availability of Quarterly Schedule of Investments

 

The iShares Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT, and for reporting periods ended prior to March 31, 2019, filed such information on Form N-Q. The iShares Funds' Forms N-Q are available on the SEC’s website at sec.gov. The iShares Funds also disclose their complete schedule of portfolio holdings on a daily basis on the iShares website at iShares.com.

 

Availability of Proxy Voting Policies and Proxy Voting Records

 

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

 

G e n e r a l  I n f o r m a t i o n 47

 

 

 

 

Glossary of Terms Used in this Report

 

Portfolio Abbreviations - Equity

 

ADR American Depositary Receipt

 

GDR Global Depositary Receipt

 

NVDR Non-Voting Depositary Receipt

 

NVS Non-Voting Shares

 

48 2 0 2 0  I S h a r e s  S e m i - A n n u a l  R e p o r t  t o  S h a r e h o l d e r s

  

 

 

 

 

 

 

 

 

  

 

 

 

 

 

 

 

 

 

 

 

Want to know more?

iShares.com   |   1-800-474-2737

 

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

 

Investing involves risk, including possible loss of principal.

 

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

 

The iShares Funds are not sponsored, endorsed, issued, sold or promoted by MSCI Inc., nor does this company make any representation regarding the advisability of investing in the iShares Funds. BlackRock is not affiliated with the company listed above.

 

©2020 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.

 

iS-SAR-812-0220

 

 

   

 

 

  FEBRUARY 29, 2020

 

  2020 Semi-Annual Report
(Unaudited)

 

iShares, Inc.

 

iShares Currency Hedged MSCI Emerging Markets ETF | HEEM | Cboe BZX
iShares MSCI Emerging Markets ETF | EEM | NYSE Arca

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

You may elect to receive all future reports in paper free of charge. If you hold accounts through a financial intermediary, you can follow the instructions included with this disclosure, if applicable, or contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. Please note that not all financial intermediaries may offer this service. Your election to receive reports in paper will apply to all funds held with your financial intermediary.

 

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive electronic delivery of shareholder reports and other communications by contacting your financial intermediary. Please note that not all financial intermediaries may offer this service.

 

 

 

 

 

 

Fund Summary as of February 29, 2020 iShares® Currency Hedged MSCI Emerging Markets ETF

 

Investment Objective

 

The iShares Currency Hedged MSCI Emerging Markets ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization emerging market equities while mitigating exposure to fluctuations between the value of the component currencies and the U.S. dollar, as represented by the MSCI Emerging Markets 100% Hedged to USD Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. The Fund currently seeks to achieve its investment objective by investing a substantial portion of its assets in one underlying fund, the iShares MSCI Emerging Markets ETF.

 

Performance

                                                         
            Average Annual Total Returns     Cumulative Total Returns  
      6 Months       1 Year       5 Years       Since
Inception
      1 Year       5 Years       Since
Inception
 
Fund NAV     2.85 %     1.00 %     3.17 %     3.30 %     1.00 %     16.88 %     19.30 %
Fund Market     3.27       1.16       3.21       3.36       1.16       17.09       19.66  
Index     3.25       1.01       3.63       3.66       1.01       19.53       21.55  

 

The inception date of the Fund was 9/23/14. The first day of secondary market trading was 9/25/14.

 

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 5 for more information.

 

Expense Example

                                                     
Actual     Hypothetical 5% Return        
Beginning
Account Value
(09/01/19)
    Ending
Account Value
(02/29/20)
    Expenses
Paid During
the Period
(a)(b)    Beginning
Account Value
(09/01/19)
    Ending
Account Value
(02/29/20)
    Expenses
Paid During
the Period
(a)(b)    Annualized
Expense
Ratio
(a)
$ 1,000.00     $ 1,028.50     $ 0.00     $ 1,000.00     $ 1,024.90     $ 0.00       0.00 %

 

(a) Annualized expense ratio and expenses paid during the period do not include fees and expenses of the underlying fund in which the Fund invests.

(b) Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 5 for more information.

 

Portfolio Information

 

Tables shown are for the underlying fund in which the Fund invests.

 

ALLOCATION BY SECTOR

         
Sector   Percent of
Total Investments
(a)
Financials     23.4 %
Information Technology     16.4  
Consumer Discretionary     14.7  
Communication Services     11.8  
Materials     6.9  
Energy     6.6  
Consumer Staples     6.3  
Industrials     5.2  
Health Care     3.2  
Real Estate     3.0  
Utilities     2.5  

TEN LARGEST GEOGRAPHICAL LOCATION

         
Country/Geographic Region   Percent of
Total Investments
(a)
China     36.7 %
Taiwan     12.0  
South Korea     11.3  
India     8.8  
Brazil     6.7  
South Africa     4.2  
Russia     3.6  
Saudi Arabia     2.5  
Mexico     2.3  
Thailand     2.3  


(a) Excludes money market funds.

 

F u n d    S u m m a r y 3

 

 

 

 

Fund Summary as of February 29, 2020 iShares® MSCI Emerging Markets ETF

 

Investment Objective

 

The iShares MSCI Emerging Markets ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization emerging market equities, as represented by the MSCI Emerging Markets Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

 

Performance

                                                         
            Average Annual Total Returns     Cumulative Total Returns  
      6 Months       1 Year       5 Years       10 Years       1 Year       5 Years       10 Years  
Fund NAV     2.61 %     (2.48 )%     2.14 %     2.47 %     (2.48 )%     11.17 %     27.67 %
Fund Market     3.24       (1.59 )     2.20       2.53       (1.59 )     11.49       28.35  
Index     2.93       (1.88 )     2.73       3.18       (1.88 )     14.41       36.77  

 

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 5 for more information.

 

Expense Example

                                                     
Actual     Hypothetical 5% Return        
Beginning
Account Value
(09/01/19)
    Ending
Account Value
(02/29/20)
    Expenses
Paid During
the Period
(a)    Beginning
Account Value
(09/01/19)
    Ending
Account Value
(02/29/20)
    Expenses
Paid During
the Period
(a)    Annualized
Expense
Ratio
 
$ 1,000.00     $ 1,026.10     $ 3.53     $ 1,000.00     $ 1,021.40     $ 3.52       0.70 %

 

(a) Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 5 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

         
Sector   Percent of
Total Investments
(a)
Financials     23.4 %
Information Technology     16.4  
Consumer Discretionary     14.7  
Communication Services     11.8  
Materials     6.9  
Energy     6.6  
Consumer Staples     6.3  
Industrials     5.2  
Health Care     3.2  
Real Estate     3.0  
Utilities     2.5  

TEN LARGEST GEOGRAPHIC ALLOCATION

         
Country/Geographic Region   Percent of
Total Investments
(a)
China     36.7 %
Taiwan     12.0  
South Korea     11.3  
India     8.8  
Brazil     6.7  
South Africa     4.2  
Russia     3.6  
Saudi Arabia     2.5  
Mexico     2.3  
Thailand     2.3  


(a) Excludes money market funds.

 

4 2 0 2 0    I S h a r e s    S e m i - A n n u a l     R e p o r t    t o    S h a r e h o l d e r s

 

 

 

 

About Fund Performance

 

Past performance is no guarantee of future results. Financial markets have experienced extreme volatility and trading in many instruments has been disrupted. These circumstances may continue for an extended period of time, and may continue to affect adversely the value and liquidity of the fund’s investments. As a result, current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at iShares.com. Performance results assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. The investment return and principal value of shares will vary with changes in market conditions. Shares may be worth more or less than their original cost when they are redeemed or sold in the market. Performance for certain funds may reflect a waiver of a portion of investment advisory fees. Without such a waiver, performance would have been lower.

 

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

 

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

 

Shareholder Expenses

 

As a shareholder of your Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares and (2) ongoing costs, including management fees and other fund expenses. The expense example, which is based on an investment of $1,000 invested at the beginning of the period (or from the commencement of operations if less than 6 months) and held through the end of the period, is intended to help you understand your ongoing costs (in dollars and cents) of investing in your Fund and to compare these costs with the ongoing costs of investing in other funds.

 

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

 

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

 

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

 

A b o u t    F u n d    P e r f o r m a n c e / S h a r e h o l d e r    E x p e n s e s 5

 

 

 

 

Schedule of Investments (unaudited) iShares® Currency Hedged MSCI Emerging Markets ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
                 
Investment Companies                
                 
Exchange-Traded Funds — 99.8%                
iShares MSCI Emerging Markets ETF(a)(b)     4,262,048     $ 172,698,185  
Total Investment Companies — 99.8%                
(Cost: $183,675,576)             172,698,185  
                 
Short-Term Investments                
Money Market Funds — 37.1%                
BlackRock Cash Funds: Institutional, SL Agency Shares, 1.74%(a)(c)(d)     62,212,860       62,256,409  
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52%(a)(c)     2,003,000       2,003,000  
              64,259,409  
Total Short-Term Investments — 37.1%                
(Cost: $64,253,187)             64,259,409  
Total Investments in Securities — 136.9%                
(Cost: $247,928,763)             236,957,594  
Other Assets, Less Liabilities — (36.9)%             (63,873,403 )
Net Assets — 100.0%           $ 173,084,191  

 

(a) Affiliate of the Fund.
(b) All or a portion of this security is on loan.
(c) Annualized 7-day yield as of period-end.
(d) All or a portion of this security was purchased with cash collateral received from loaned securities.


Affiliates

 

Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940Act, were as follows:

 

Affiliated Issuer   Shares
Held at
08/31/19
    Shares
Purchased
    Shares
Sold
    Shares
Held at
02/29/20
    Value at
02/29/20
    Income     Net
Realized
Gain (Loss)
(a)   Change in
Unrealized
Appreciation
(Depreciation)
 
BlackRock Cash Funds: Institutional, SL Agency Shares     71,473,253             (9,260,393 )(b)     62,212,860     $ 62,256,409     $ 30,326 (c)   $ (6,750 )   $ 13,369  
BlackRock Cash Funds: Treasury, SL Agency Shares     4,729,000             (2,726,000 )(b)     2,003,000       2,003,000       3,350              
iShares MSCI Emerging Markets ETF     4,491,885       757,280       (987,117 )     4,262,048       172,698,185       3,921,274       2,048,056       476,251  
                                    $ 236,957,594     $ 3,954,950     $ 2,041,306     $ 489,620  

 

(a) Includes realized capital gain distributions from an affiliated fund, if any.
(b) Net of purchases and sales.
(c) Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

 

Forward Foreign Currency Exchange Contracts

 

                          Unrealized  
                          Appreciation  
Currency Purchased   Currency Sold   Counterparty     Settlement Date   (Depreciation)  
CNY 52,740,320     USD 7,521,867       MS     03/04/20   $ 36,295  
EUR 2,547,000     USD 2,788,041       MS     03/04/20     23,902  
TWD 32,967,000     USD 1,087,009       MS     03/04/20     2,696  
USD 13,565,425     BRL 57,601,000       MS     03/04/20     685,513  
USD 1,978,108     CLP 1,579,677,000       MS     03/04/20     46,726  
USD 2,992,364     EUR 2,710,000       MS     03/04/20     466  
USD 39,755,167     HKD 309,020,000       MS     03/04/20     111,348  
USD 16,663,232     INR 1,197,368,000       MS     03/04/20     77,644  
USD 27,093,934     KRW 32,262,122,000       MS     03/04/20     487,550  
USD 4,526,080     MXN 85,356,000       MS     03/04/20     190,203  
USD 6,537,117     RUB 414,579,000       MS     03/04/20     341,106  

 

6 2 0 2 0    I S h a r e s    S e m i - A n n u a l    R e p o r t    t o    S h a r e h o l d e r s

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® Currency Hedged MSCI Emerging Markets ETF
February 29, 2020  

 

Forward Foreign Currency Exchange Contracts (continued)

 

                          Unrealized  
                          Appreciation  
Currency Purchased   Currency Sold   Counterparty     Settlement Date   (Depreciation)  
USD 963,570     TRY 5,807,000       MS     03/04/20   $ 32,480  
USD 202,480     TWD 6,121,000       MS     03/04/20     154  
USD 8,700,401     ZAR 128,836,000       MS     03/04/20     443,010  
BRL 5,739,000     USD 1,271,094       MS     04/03/20     9,718  
CLP 107,315,000     USD 130,925       MS     04/03/20     299  
CNY 466,000     USD 66,645       MS     04/03/20     98  
EUR 278,000     USD 306,235       MS     04/03/20     1,255  
INR 46,138,000     USD 632,153       MS     04/03/20     2,710  
KRW 1,842,639,000     USD 1,527,035       MS     04/03/20     7,219  
MXN 6,360,000     USD 320,104       MS     04/03/20     1,438  
RUB 18,904,000     USD 280,578       MS     04/03/20     138  
USD 12,445,713     BRL 55,595,000       MS     04/03/20     38,192  
USD 1,864,497     CLP 1,521,066,000       MS     04/03/20     4,548  
USD 17,700     EUR 16,000       MS     04/03/20     3  
USD 38,201,588     HKD 297,706,000       MS     04/03/20     5,750  
USD 16,291,527     INR 1,171,621,000       MS     04/03/20     169,929  
USD 4,292,774     MXN 83,555,000       MS     04/03/20     68,494  
USD 6,137,563     RUB 405,118,000       MS     04/03/20     121,734  
USD 912,067     TRY 5,685,000       MS     04/03/20     13,767  
USD 8,000,495     ZAR 123,459,000       MS     04/03/20     123,293  
ZAR 6,607,000     USD 419,738       MS     04/03/20     1,816  
TWD 242,174,000     USD 8,032,885       MS     04/06/20     29,274  
                              3,078,768  
BRL 57,601,000     USD 12,938,107       MS     03/04/20     (58,192 )
CLP 1,579,677,000     USD 1,939,716       MS     03/04/20     (8,334 )
EUR 163,000     USD 180,678       MS     03/04/20     (723 )
HKD 309,020,000     USD 39,662,238       MS     03/04/20     (18,419 )
INR 1,197,368,000     USD 16,722,595       MS     03/04/20     (137,008 )
KRW 32,262,122,000     USD 26,664,412       MS     03/04/20     (58,028 )
MXN 85,356,000     USD 4,411,217       MS     03/04/20     (75,340 )
RUB 414,579,000     USD 6,314,029       MS     03/04/20     (118,017 )
TRY 5,807,000     USD 941,163       MS     03/04/20     (10,074 )
TWD 877,100,000     USD 29,029,161       MS     03/04/20     (37,132 )
USD 7,528,246     CNY 52,740,320       MS     03/04/20     (29,917 )
USD 29,877,574     TWD 903,946,000       MS     03/04/20     (1,834 )
ZAR 128,836,000     USD 8,399,431       MS     03/04/20     (142,040 )
HKD 1,395,000     USD 179,028       MS     04/03/20     (49 )
TRY 511,000     USD 80,917       MS     04/03/20     (173 )
USD 247,869     BRL 1,113,000       MS     04/03/20     (527 )
USD 12,370     CLP 10,119,000       MS     04/03/20     (5 )
USD 7,609,555     CNY 53,391,320       MS     04/03/20     (37,440 )
USD 2,809,984     EUR 2,562,000       MS     04/03/20     (23,793 )
USD 272,120     HKD 2,121,000       MS     04/03/20     (5 )
USD 110,775     INR 8,056,000       MS     04/03/20     (76 )
USD 26,150,036     KRW 31,655,785,000       MS     04/03/20     (207,820 )
USD 27,940     MXN 553,000       MS     04/03/20     (18 )
USD 3,095,824     MYR 13,098,000       MS     04/03/20     (10,397 )
USD 3,995,308     THB 126,358,000       MS     04/03/20     (11,415 )
USD 5,844     TRY 37,000       MS     04/03/20     (3 )

 

S c h e d u l e    o f    I n v e s t m e n t s 7

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® Currency Hedged MSCI Emerging Markets ETF
February 29, 2020  

 

Forward Foreign Currency Exchange Contracts (continued)

                                 
                          Unrealized  
                          Appreciation  
Currency Purchased   Currency Sold   Counterparty     Settlement Date   (Depreciation)  
USD 53,315     ZAR 836,000       MS     04/03/20   $ (25 )
USD 28,512,311     TWD 859,932,000       MS     04/06/20     (115,488 )
                              (1,102,292 )
Net unrealized appreciation                 $ 1,976,476  

 

Derivative Financial Instruments Categorized by Risk Exposure

 

As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

    Foreign  
    Currency  
    Exchange  
    Contracts  
Assets — Derivative Financial Instruments        
Forward foreign currency exchange contracts        
Unrealized appreciation on forward foreign currency exchange contracts   $ 3,078,768  
Liabilities — Derivative Financial Instruments        
Forward foreign currency exchange contracts        
Unrealized depreciation on forward foreign currency exchange contracts   $ 1,102,292  

 

For the six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

    Foreign  
    Currency  
    Exchange  
    Contracts  
Net Realized Gain (Loss) from:        
Forward foreign currency exchange contracts   $ 1,364,654  
Net Change in Unrealized Appreciation (Depreciation) on:        
Forward foreign currency exchange contracts   $ (1,902,607 )

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Forward foreign currency exchange contracts:      
Average amounts purchased — in USD   $ 233,936,080  
Average amounts sold — in USD   $ 388,177,032  

 

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

 

Derivative Financial Instruments - Offsetting as of Period End

 

The Fund’s derivative assets and liabilities (by type) were as follows:

 

    Assets     Liabilities  
Derivative Financial Instruments:                
Forward foreign currency exchange contracts   $ 3,078,768     $ 1,102,292  
Total derivative assets and liabilities in the Statement of Assets and Liabilities   $ 3,078,768     $ 1,102,292  
Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”)            
Total derivative assets and liabilities subject to an MNA   $ 3,078,768     $ 1,102,292  

 

8 2 0 2 0    I S h a r e s    S e m i - A n n u a l    R e p o r t    t o    S h a r e h o l d e r s

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® Currency Hedged MSCI Emerging Markets ETF
February 29, 2020  

 

The following tables present the Fund’s derivative assets and liabilities by counterparty net of amounts available for offset under an MNA and net of the related collateral received and pledged by the Fund: 

 

Counterparty   Derivative
Assets
Subject to
an MNA by
Counterparty
    Derivatives
Available
for Offset
(a)   Cash
Collateral
Received
(b)   Net Amount
of Derivative
Assets
(c)(d)
Morgan Stanley & Co. International PLC   $ 3,078,768     $ (1,102,292 )   $ (1,900,000 )   $ 76,476  

 

Counterparty   Derivative
Liabilities
Subject to
an MNA by
Counterparty
    Derivatives
Available
for Offset
(a)   Cash
Collateral
Pledged
    Net Amount
of Derivative
Liabilities
(e)
Morgan Stanley & Co. International PLC   $ 1,102,292     $ (1,102,292 )   $     $  

 

(a) The amount of derivatives available for offset is limited to the amount of derivatives assets and/or liabilities that are subject to an MNA.
(b) Excess of collateral received from the individual counterparty is not shown for financial reporting purposes.
(c) Net amount represents the net amount receivable from the counterparty in the event of default.
(d) Net amount may also include forward foreign currency exchange contracts that are not required to be collateralized.
(e) Net amount represents the net amount payable due to the counterparty in the event of default.

 

Fair Value Measurements

 

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

 

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.

 

    Level 1     Level 2     Level 3     Total  
Investments                        
Assets                        
Investment Companies   $ 172,698,185     $     $     $ 172,698,185  
Money Market Funds     64,259,409                   64,259,409  
    $ 236,957,594     $     $     $ 236,957,594  
Derivative financial instruments(a)                                
Assets                                
Forward Foreign Currency Exchange Contracts   $     $ 3,078,768     $     $ 3,078,768  
Liabilities                                
Forward Foreign Currency Exchange Contracts           (1,102,292 )           (1,102,292 )
    $     $ 1,976,476     $     $ 1,976,476  

 

(a) Shown at the unrealized appreciation (depreciation) on the contracts.

 

See notes to financial statements.

 

S c h e d u l e    o f    I n v e s t m e n t s 9

  

 

 

 

Consolidated Schedule of Investments (unaudited) iShares® MSCI Emerging Markets ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
                 
Common Stocks                
                 
Argentina — 0.2%                
Banco Macro SA, ADR     204,438     $ 5,924,613  
Globant SA(a)(b)     155,674       17,592,719  
Grupo Financiero Galicia SA, ADR     458,056       5,789,828  
Telecom Argentina SA, ADR     395,870       4,592,092  
YPF SA, ADR     791,658       6,325,347  
              40,224,599  
Brazil — 4.6%                
Ambev SA     21,035,315       67,791,934  
Atacadao SA     1,784,200       8,182,172  
B2W Cia. Digital(a)     945,929       13,030,596  
B3 SA - Brasil, Bolsa, Balcao     9,188,701       97,759,722  
Banco Bradesco SA     5,490,269       33,209,456  
Banco BTG Pactual SA     1,011,300       15,143,778  
Banco do Brasil SA     3,812,374       39,597,009  
Banco Santander Brasil SA     1,806,100       15,956,722  
BB Seguridade Participacoes SA     3,113,400       21,979,052  
BR Malls Participacoes SA     3,569,588       12,928,101  
BRF SA(a)     2,536,285       15,200,901  
CCR SA     5,432,300       19,662,310  
Centrais Eletricas Brasileiras SA     1,172,173       8,971,249  
Cia. de Saneamento Basico do Estado de Sao Paulo     1,528,524       19,904,200  
Cia. Siderurgica Nacional SA     2,793,328       6,921,948  
Cielo SA     5,473,976       8,311,091  
Cogna Educacao     7,643,080       17,093,231  
Cosan SA     724,600       11,751,572  
Embraer SA(a)     3,171,300       11,921,414  
Energisa SA     745,700       8,925,293  
Engie Brasil Energia SA     904,350       9,527,281  
Equatorial Energia SA     3,844,500       21,013,459  
Hapvida Participacoes e Investimentos SA(c)     977,000       11,953,587  
Hypera SA     1,716,200       13,047,479  
IRB Brasil Resseguros S/A     3,123,500       23,019,599  
JBS SA     4,868,565       24,495,789  
Klabin SA     3,119,800       13,311,350  
Localiza Rent a Car SA     2,727,508       29,949,302  
Lojas Renner SA     3,605,089       42,590,016  
Magazine Luiza SA     3,276,300       36,686,950  
Multiplan Empreendimentos Imobiliarios SA     1,293,909       8,752,918  
Natura & Co. Holding SA     2,844,766       28,695,777  
Notre Dame Intermedica Participacoes SA     2,138,600       29,972,112  
Petrobras Distribuidora SA     3,155,500       18,254,641  
Petroleo Brasileiro SA     16,554,674       99,621,956  
Porto Seguro SA     432,900       5,851,128  
Raia Drogasil SA     1,039,200       27,617,408  
Rumo SA(a)     4,889,800       22,890,201  
Sul America SA     1,233,736       14,783,010  
Suzano SA     2,422,800       20,481,552  
TIM Participacoes SA     3,812,076       13,628,891  
Ultrapar Participacoes SA     3,235,200       13,681,827  
Vale SA     14,126,709       138,741,808  
WEG SA     3,747,706       35,843,541  
              1,158,653,333  
Chile — 0.6%                
Aguas Andinas SA, Class A     12,573,458       4,291,802  
Banco de Chile     198,716,554       17,453,376  
Banco de Credito e Inversiones SA     226,569       8,423,871  
Banco Santander Chile     290,857,960       12,937,972  
Security   Shares     Value  
                 
Chile (continued)                
Cencosud SA     6,533,529     $ 7,645,933  
Cia. Cervecerias Unidas SA     674,090       5,048,711  
Colbun SA     38,838,408       4,862,317  
Empresa Nacional de Telecomunicaciones SA(a)     728,318       3,821,776  
Empresas CMPC SA     5,154,694       10,368,078  
Empresas COPEC SA     1,732,422       13,408,198  
Enel Americas SA     169,449,951       28,299,152  
Enel Chile SA     125,983,141       11,211,061  
Itau CorpBanca     746,735,942       2,731,772  
Latam Airlines Group SA     1,022,617       6,801,407  
SACI Falabella     3,256,120       10,796,443  
              148,101,869  
China — 36.7%                
360 Security Technology Inc., Class A     536,890       1,716,616  
3SBio Inc.(a)(c)     5,777,000       5,989,716  
51job Inc., ADR(a)(b)     119,601       8,942,567  
58.com Inc., ADR(a)(b)     424,414       23,414,920  
AAC Technologies Holdings Inc.(b)     3,264,500       21,384,788  
AECC Aviation Power Co. Ltd., Class A     852,773       2,818,096  
Agile Group Holdings Ltd.(b)     6,282,000       8,818,765  
Agricultural Bank of China Ltd., Class A     20,956,300       10,223,024  
Agricultural Bank of China Ltd., Class H     124,231,000       49,736,717  
Aier Eye Hospital Group Co. Ltd., Class A     841,220       4,813,711  
Air China Ltd., Class A     224,693       239,794  
Air China Ltd., Class H     9,324,000       7,501,746  
Aisino Corp., Class A     1,183,174       3,994,579  
Alibaba Group Holding Ltd., ADR(a)     7,727,405       1,607,300,240  
Alibaba Health Information Technology Ltd.(a)     16,282,000       31,214,105  
Alibaba Pictures Group Ltd.(a)     67,880,000       9,145,842  
A-Living Services Co. Ltd., Class H(c)     1,925,750       8,624,181  
Aluminum Corp. of China Ltd., Class A(a)     562,200       246,106  
Aluminum Corp. of China Ltd., Class H(a)(b)     22,006,000       5,845,262  
Angang Steel Co. Ltd., Class A     4,419,977       1,808,408  
Anhui Conch Cement Co. Ltd., Class A     1,132,586       8,888,682  
Anhui Conch Cement Co. Ltd., Class H     5,472,000       40,128,679  
Anhui Gujing Distillery Co. Ltd., Class A     146,385       2,561,141  
Anhui Kouzi Distillery Co. Ltd., Class A     266,252       1,705,259  
ANTA Sports Products Ltd.     4,869,402       39,146,167  
Asymchem Laboratories Tianjin Co. Ltd., Class A     123,200       3,156,227  
Autobio Diagnostics Co. Ltd., Class A     119,692       2,055,596  
Autohome Inc., ADR(a)(b)     264,945       20,578,278  
AVIC Aircraft Co. Ltd., Class A     1,521,686       3,702,881  
Avic Capital Co. Ltd., Class A     5,405,089       3,293,994  
AVIC Jonhon Optronic Technology Co. Ltd., Class A     523,193       2,940,725  
AviChina Industry & Technology Co. Ltd., Class H     11,735,000       5,104,760  
AVICOPTER PLC, Class A     397,084       2,290,410  
BAIC Motor Corp. Ltd., Class H(c)     7,708,500       3,778,555  
Baidu Inc., ADR(a)(b)     1,224,234       146,883,595  
Bank of Beijing Co. Ltd., Class A     6,319,206       4,619,488  
Bank of Chengdu Co. Ltd., Class A     2,615,100       3,056,474  
Bank of China Ltd., Class A     10,078,000       5,118,151  
Bank of China Ltd., Class H     352,854,000       139,456,352  
Bank of Communications Co. Ltd., Class A     11,946,873       8,887,262  
Bank of Communications Co. Ltd., Class H     34,921,600       22,405,605  
Bank of Guiyang Co. Ltd., Class A     3,110,700       3,738,073  
Bank of Hangzhou Co. Ltd., Class A     3,176,245       3,903,171  
Bank of Jiangsu Co. Ltd., Class A     3,747,685       3,420,536  
Bank of Nanjing Co. Ltd., Class A     2,705,046       3,002,941  
Bank of Ningbo Co. Ltd., Class A     1,585,381       5,706,301  


10 2 0 2 0    I S h a r e s    S e m i - A n n u a l    R e p o r t    t o    S h a r e h o l d e r s

 

 

 

 

 

Consolidated Schedule of Investments (unaudited) (continued) iShares® MSCI Emerging Markets ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
                 
China (continued)                
Bank of Shanghai Co. Ltd., Class A     3,995,442     $ 4,921,283  
Baoshan Iron & Steel Co. Ltd., Class A     5,064,373       3,767,380  
Baozun Inc., ADR(a)(b)     194,726       6,176,709  
BBMG Corp., Class H     12,158,000       3,416,637  
Beijing Capital International Airport Co. Ltd., Class H     7,916,000       6,175,923  
Beijing Enlight Media Co. Ltd., Class A     1,239,495       1,922,138  
Beijing Enterprises Holdings Ltd.     2,327,500       9,826,031  
Beijing Enterprises Water Group Ltd.(b)     23,374,000       10,857,608  
Beijing New Building Materials PLC, Class A     826,713       2,980,339  
Beijing Oriental Yuhong Waterproof Technology Co. Ltd., Class A     647,786       2,878,349  
Beijing Shiji Information Technology Co. Ltd., Class A     350,130       1,943,942  
Beijing Shunxin Agriculture Co. Ltd., Class A     287,000       2,258,161  
Beijing Sinnet Technology Co. Ltd., Class A     699,586       2,512,032  
Beijing Tiantan Biological Products Corp. Ltd., Class A     527,192       2,611,751  
Beijing Tongrentang Co. Ltd., Class A     992,812       3,712,641  
BEST Inc., ADR(a)(b)     856,688       4,634,682  
Betta Pharmaceuticals Co. Ltd., Class A     140,696       1,624,298  
BGI Genomics Co. Ltd., Class A     127,600       1,512,354  
BOC Aviation Ltd.(c)     950,900       8,254,584  
BOE Technology Group Co. Ltd., Class A     9,141,800       6,408,232  
Bosideng International Holdings Ltd.(b)     14,526,000       4,231,209  
Brilliance China Automotive Holdings Ltd.(b)     13,786,000       11,675,480  
BYD Co. Ltd., Class A     488,112       4,564,659  
BYD Co. Ltd., Class H(b)     2,867,500       17,551,504  
BYD Electronic International Co. Ltd.(b)     3,079,500       5,769,333  
Caitong Securities Co. Ltd., Class A     1,703,165       2,704,519  
Centre Testing International Group Co. Ltd., Class A     784,900       1,828,012  
CGN Power Co. Ltd., Class H(c)     48,479,000       11,819,519  
Changchun High & New Technology Industry Group Inc., Class A     57,897       4,008,776  
Changjiang Securities Co. Ltd., Class A     3,426,574       3,303,927  
Chaozhou Three-Circle Group Co. Ltd., Class A     429,205       1,461,343  
China Agri-Industries Holdings Ltd.     10,415,000       5,653,172  
China Aoyuan Group Ltd.     5,512,000       7,935,871  
China Cinda Asset Management Co. Ltd., Class H     41,525,000       8,685,399  
China CITIC Bank Corp. Ltd., Class A     5,375,299       4,175,542  
China CITIC Bank Corp. Ltd., Class H     33,430,800       17,373,780  
China Coal Energy Co. Ltd., Class H     9,559,000       3,091,047  
China Communications Construction Co. Ltd., Class H     20,843,000       15,539,209  
China Communications Services Corp. Ltd., Class H     11,058,000       8,556,309  
China Conch Venture Holdings Ltd.     7,396,500       35,971,455  
China Construction Bank Corp., Class A     2,879,868       2,677,912  
China Construction Bank Corp., Class H     428,482,760       346,390,872  
China East Education Holdings Ltd.(a)(c)     1,979,000       4,027,555  
China Eastern Airlines Corp. Ltd., Class A(a)     5,136,497       3,336,056  
China Eastern Airlines Corp. Ltd., Class H(a)     4,192,000       1,796,637  
China Education Group Holdings Ltd.     2,796,000       3,975,296  
China Everbright Bank Co. Ltd., Class A     10,720,303       5,797,080  
China Everbright Bank Co. Ltd., Class H     13,954,000       5,586,578  
China Everbright International Ltd.     16,957,813       11,293,531  
China Everbright Ltd.     4,358,000       7,269,811  
China Evergrande Group(b)     8,301,388       18,641,519  
China First Capital Group Ltd.(a)     13,290,000       366,654  
Security   Shares     Value  
                 
China (continued)                
China Fortune Land Development Co. Ltd., Class A     887,027     $ 2,993,472  
China Galaxy Securities Co. Ltd., Class H     16,106,500       8,887,143  
China Gas Holdings Ltd.(b)     8,188,000       29,944,374  
China Greatwall Technology Group Co. Ltd., Class A     973,873       1,949,083  
China Hongqiao Group Ltd.     8,426,000       4,519,499  
China Huarong Asset Management Co. Ltd., Class H(c)     47,120,000       6,409,198  
China Huishan Dairy Holdings Co. Ltd.(a)(d)     5,603,350       10,785  
China International Capital Corp. Ltd., Class H(c)     5,974,000       11,023,427  
China International Marine Containers Group Co. Ltd., Class A     1,516,404       1,735,463  
China International Travel Service Corp. Ltd., Class A     532,632       5,981,461  
China Jinmao Holdings Group Ltd.(b)     23,934,000       17,475,117  
China Jushi Co. Ltd., Class A     1,839,992       2,469,046  
China Lesso Group Holdings Ltd.     4,297,000       6,451,248  
China Life Insurance Co. Ltd., Class A     769,599       3,242,352  
China Life Insurance Co. Ltd., Class H     33,153,000       77,681,239  
China Literature Ltd.(a)(c)     1,209,000       5,468,623  
China Longyuan Power Group Corp. Ltd., Class H     14,814,000       7,755,772  
China Medical System Holdings Ltd.     6,238,000       7,684,385  
China Mengniu Dairy Co. Ltd.     12,451,000       44,655,873  
China Merchants Bank Co. Ltd., Class A     5,266,089       25,764,677  
China Merchants Bank Co. Ltd., Class H     17,676,967       83,359,986  
China Merchants Energy Shipping Co. Ltd., Class A     2,359,757       1,708,159  
China Merchants Port Holdings Co. Ltd.     6,530,000       9,602,633  
China Merchants Securities Co. Ltd., Class A     1,972,984       4,981,713  
China Merchants Shekou Industrial Zone Holdings Co. Ltd., Class A     1,895,190       4,701,238  
China Minsheng Banking Corp. Ltd., Class A     12,232,255       10,009,513  
China Minsheng Banking Corp. Ltd., Class H     26,900,548       18,156,804  
China Mobile Ltd.     27,453,000       215,944,835  
China Molybdenum Co. Ltd., Class A     5,967,098       3,474,305  
China Molybdenum Co. Ltd., Class H(b)     16,545,000       6,178,063  
China National Building Material Co. Ltd., Class H     17,380,000       20,094,033  
China National Chemical Engineering Co. Ltd., Class A     4,318,867       4,294,030  
China National Nuclear Power Co. Ltd., Class A     5,038,800       3,308,645  
China National Software & Service Co. Ltd., Class A     159,599       1,945,956  
China Northern Rare Earth Group High-Tech Co. Ltd., Class A     1,588,554       2,068,015  
China Oilfield Services Ltd., Class H     7,482,000       9,600,862  
China Overseas Land & Investment Ltd.     17,192,960       57,691,905  
China Pacific Insurance Group Co. Ltd., Class A     1,673,148       7,633,071  
China Pacific Insurance Group Co. Ltd., Class H     11,768,200       38,733,786  
China Petroleum & Chemical Corp., Class A     7,100,689       4,672,709  
China Petroleum & Chemical Corp., Class H     114,172,800       58,895,382  
China Power International Development Ltd.     20,530,000       3,819,878  
China Railway Construction Corp. Ltd., Class A     3,429,120       4,660,330  
China Railway Construction Corp. Ltd., Class H     8,511,500       9,742,345  
China Railway Group Ltd., Class A     5,958,800       4,577,660  
China Railway Group Ltd., Class H     16,653,000       9,402,378  
China Railway Signal & Communication Corp. Ltd., Class H(c)     7,064,000       3,625,795  
China Reinsurance Group Corp., Class H     24,543,000       3,338,305  
China Resources Beer Holdings Co. Ltd.     6,612,000       30,628,984  


S c h e d u l e    o f    I n v e s t m e n t s 11

  

 

 

 

Consolidated Schedule of Investments (unaudited) (continued) iShares® MSCI Emerging Markets ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
                 
China (continued)                
China Resources Cement Holdings Ltd.     11,136,000   $ 14,018,152  
China Resources Gas Group Ltd.     4,036,000       20,146,207  
China Resources Land Ltd.     13,455,333       62,070,591  
China Resources Pharmaceutical Group Ltd.(c)     7,463,500       6,493,290  
China Resources Power Holdings Co. Ltd.     8,692,999       10,340,509  
China Resources Sanjiu Medical & Pharmaceutical Co. Ltd., Class A     532,371       2,498,036  
China Shenhua Energy Co. Ltd., Class A     1,272,694       2,913,093  
China Shenhua Energy Co. Ltd., Class H     15,278,000       26,505,484  
China Shipbuilding Industry Co. Ltd., Class A     6,207,792       3,916,392  
China Southern Airlines Co. Ltd., Class A     2,618,400       2,157,590  
China Southern Airlines Co. Ltd., Class H(b)     7,416,000       3,911,146  
China Spacesat Co. Ltd., Class A     333,300       1,621,632  
China State Construction Engineering Corp. Ltd., Class A     10,044,471       7,716,347  
China State Construction International  Holdings Ltd.     9,262,000       7,499,403  
China Taiping Insurance Holdings Co. Ltd.     7,360,260       15,035,877  
China Telecom Corp. Ltd., Class H     62,564,000       23,522,564  
China Tower Corp. Ltd., Class H(c)     187,604,000       45,498,433  
China Traditional Chinese Medicine Holdings Co. Ltd.     10,640,000       5,597,808  
China TransInfo Technology Co. Ltd., Class A     690,000       2,673,057  
China Unicom Hong Kong Ltd.     27,658,000       21,826,717  
China United Network Communications Ltd., Class A     8,139,298       6,380,841  
China Vanke Co. Ltd., Class A     2,568,759       10,873,735  
China Vanke Co. Ltd., Class H     6,437,431       24,781,431  
China Yangtze Power Co. Ltd., Class A     5,719,915       13,935,245  
China Zhongwang Holdings Ltd.     8,278,000       2,783,039  
Chongqing Changan Automobile Co. Ltd., Class A     1,422,887       2,070,150  
Chongqing Rural Commercial Bank Co. Ltd., Class H     11,664,000       5,268,448  
Chongqing Zhifei Biological Products Co. Ltd., Class A     407,876       3,499,814  
CIFI Holdings Group Co. Ltd.     12,516,000       9,555,976  
CITIC Ltd.     26,280,000       29,169,837  
CITIC Securities Co. Ltd., Class A     2,855,351       9,558,412  
CITIC Securities Co. Ltd., Class H     8,599,000       18,382,962  
CNOOC Ltd.     79,926,000       109,534,737  
Contemporary Amperex Technology Co. Ltd., Class A     593,429       11,517,626  
COSCO SHIPPING Energy Transportation Co. Ltd., Class H     5,996,000       2,338,987  
COSCO SHIPPING Holdings Co. Ltd., Class A(a)     3,680,188       2,126,972  
COSCO SHIPPING Holdings Co. Ltd., Class H(a)(b)     9,960,000       3,322,961  
COSCO SHIPPING Ports Ltd.     8,318,000       5,539,605  
Country Garden Holdings Co. Ltd.(b)     34,073,939       45,122,648  
Country Garden Services Holdings Co. Ltd.     5,448,000       21,252,167  
CRRC Corp. Ltd., Class A     7,356,337       6,735,223  
CRRC Corp. Ltd., Class H     18,589,300       11,926,845  
CSC Financial Co. Ltd., Class A     740,297       3,411,199  
CSPC Pharmaceutical Group Ltd.     20,998,000       47,853,469  
Dali Foods Group Co. Ltd.(c)     9,763,000       6,451,832  
Daqin Railway Co. Ltd., Class A     4,008,455       4,059,950  
Datang International Power Generation Co. Ltd., Class H     14,802,000       2,317,249  
Dawning Information Industry Co. Ltd., Class A     371,942       2,403,986  
DHC Software Co. Ltd., Class A     1,064,098       2,245,350  
Security   Shares     Value  
                 
China (continued)                
Dongfeng Motor Group Co. Ltd., Class H     12,338,000     $ 9,752,546  
Dongxing Securities Co. Ltd., Class A     261,397       452,103  
East Money Information Co. Ltd., Class A     1,747,343       4,336,986  
ENN Energy Holdings Ltd.     3,538,600       39,209,053  
Eve Energy Co. Ltd., Class A(a)     303,589       2,890,310  
Everbright Securities Co. Ltd., Class A     1,924,549       3,270,814  
Fangda Carbon New Material Co. Ltd., Class A(a)     455,096       655,606  
Far East Horizon Ltd.     10,541,000       9,211,311  
Fiberhome Telecommunication Technologies Co. Ltd., Class A     683,190       2,930,107  
First Capital Securities Co. Ltd., Class A     2,048,000       2,229,590  
Focus Media Information Technology Co. Ltd., Class A     4,162,878       3,180,133  
Foshan Haitian Flavouring & Food Co. Ltd., Class A.     600,949       8,560,914  
Fosun International Ltd.     11,808,000       15,045,899  
Founder Securities Co. Ltd., Class A     2,983,587       3,124,354  
Foxconn Industrial Internet Co. Ltd., Class A     1,107,597       2,706,326  
Fuyao Glass Industry Group Co. Ltd., Class A     1,127,572       3,737,496  
Fuyao Glass Industry Group Co. Ltd., Class H(c)     2,139,600       6,108,789  
Ganfeng Lithium Co. Ltd., Class A     356,181       2,648,606  
GCL System Integration Technology Co. Ltd., Class A(a)     2,051,200       1,619,785  
GD Power Development Co. Ltd., Class A     14,713,700       4,420,298  
GDS Holdings Ltd., ADR(a)(b)     276,896       16,051,661  
Geely Automobile Holdings Ltd.     22,474,000       39,970,184  
Gemdale Corp., Class A     1,938,530       3,965,692  
Genscript Biotech Corp.(a)(b)     4,256,000       8,858,190  
GF Securities Co. Ltd., Class A     1,809,494       3,753,492  
GF Securities Co. Ltd., Class H     6,237,200       7,459,301  
Gigadevice Semiconductor Beijing Inc., Class A     94,293       4,897,160  
Glodon Co. Ltd., Class A     515,793       3,299,062  
GoerTek Inc., Class A     1,002,000       3,192,261  
GOME Retail Holdings Ltd.(a)(b)     47,810,200       4,907,983  
Great Wall Motor Co. Ltd., Class H     13,973,000       10,112,564  
Gree Electric Appliances Inc. of Zhuhai, Class A     745,810       6,316,264  
Greenland Holdings Corp. Ltd., Class A     4,838,018       4,041,948  
Greentown Service Group Co. Ltd.     5,208,000       6,509,123  
Guangdong Haid Group Co. Ltd., Class A.     666,827       3,262,494  
Guangdong Investment Ltd.     13,370,110       25,117,048  
Guangzhou Automobile Group Co. Ltd., Class H     13,795,838       15,383,686  
Guangzhou Baiyun International Airport Co. Ltd., Class A     789,391       1,748,129  
Guangzhou Baiyunshan Pharmaceutical Holdings Co. Ltd., Class A     591,195       2,881,465  
Guangzhou Kingmed Diagnostics Group Co. Ltd., Class A     192,284       1,488,714  
Guangzhou R&F Properties Co. Ltd., Class H     5,331,200       8,263,888  
Guosen Securities Co. Ltd., Class A     1,947,669       3,279,458  
Guotai Junan Securities Co. Ltd., Class A     2,547,340       6,195,070  
Guotai Junan Securities Co. Ltd., Class H(c)     2,675,000       4,469,174  
Haidilao International Holding Ltd.(b)(c)     1,698,000       6,939,683  
Haier Electronics Group Co. Ltd.     5,776,000       16,528,163  
Haier Smart Home Co. Ltd., Class A     1,653,341       4,025,616  
Haitian International Holdings Ltd.     3,152,000       6,180,194  
Haitong Securities Co. Ltd., Class A     2,287,601       4,650,341  
Haitong Securities Co. Ltd., Class H     12,949,600       13,908,310  
Hangzhou Hikvision Digital Technology Co. Ltd., Class A     2,401,402       12,023,843  
Hangzhou Robam Appliances Co. Ltd., Class A     478,764       2,124,583  


12 2 0 2 0    I S h a r e s    S e m i - A n n u a l    R e p o r t    t o    S h a r e h o l d e r s

 

 

 

 

Consolidated Schedule of Investments (unaudited) (continued) iShares® MSCI Emerging Markets ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
                 
China (continued)                
Hangzhou Tigermed Consulting Co. Ltd., Class A     266,500     $ 2,916,547  
Hansoh Pharmaceutical Group Co. Ltd.(a)(c)     2,352,000       8,163,890  
Henan Shuanghui Investment & Development Co. Ltd., Class A     851,100       4,139,710  
Hengan International Group Co. Ltd.     3,261,000       24,207,319  
Hengli Petrochemical Co. Ltd., Class A     1,670,391       3,560,531  
Hengtong Optic-Electric Co. Ltd., Class A     1,193,555       2,812,202  
Hengyi Petrochemical Co. Ltd., Class A     1,299,615       2,567,549  
Hithink RoyalFlush Information Network Co. Ltd., Class A     167,300       2,955,549  
Hua Hong Semiconductor Ltd.(b)(c)     2,024,000       4,404,827  
Huadian Power International Corp. Ltd., Class H     8,396,000       2,531,820  
Huadong Medicine Co. Ltd., Class A     666,205       1,839,398  
Hualan Biological Engineering Inc., Class A     569,051       3,378,389  
Huaneng Power International Inc., Class H     19,168,000       7,723,230  
Huatai Securities Co. Ltd., Class A     1,948,317       5,170,278  
Huatai Securities Co. Ltd., Class H(c)     7,037,000       12,226,404  
Huaxia Bank Co. Ltd., Class A     4,458,180       4,432,541  
Huaxin Cement Co. Ltd., Class A     556,506       1,941,744  
Huayu Automotive Systems Co. Ltd., Class A     851,768       3,430,126  
Huazhu Group Ltd., ADR(b)     593,026       20,014,628  
Hubei Biocause Pharmaceutical Co. Ltd., Class A.     2,583,399       2,202,663  
Hundsun Technologies Inc., Class A     238,594       3,283,219  
Hutchison China MediTech Ltd., ADR(a)(b)     275,512       6,424,940  
HUYA Inc., ADR(a)(b)     278,674       5,520,532  
Iflytek Co. Ltd., Class A     633,575       3,497,705  
Industrial & Commercial Bank of China Ltd., Class A     15,060,135       11,418,660  
Industrial & Commercial Bank of China Ltd., Class H     288,839,085       197,549,396  
Industrial Bank Co. Ltd., Class A     5,257,322       13,003,791  
Industrial Securities Co. Ltd., Class A     3,769,851       3,726,599  
Inner Mongolia BaoTou Steel Union Co. Ltd., Class A     17,725,600       2,966,861  
Inner Mongolia Yili Industrial Group Co. Ltd., Class A     1,495,699       6,185,897  
Inner Mongolia Yitai Coal Co. Ltd., Class B     5,165,817       3,543,750  
Innovent Biologics Inc.(a)(c)     3,313,500       15,136,641  
Inspur Electronic Information Industry Co. Ltd., Class A     406,113       2,442,999  
iQIYI Inc., ADR(a)(b)     567,858       12,737,055  
Jafron Biomedical Co. Ltd., Class A     188,409       2,434,423  
JD.com Inc., ADR(a)     3,290,838       126,730,171  
Jiangsu Expressway Co. Ltd., Class H     5,846,000       6,758,902  
Jiangsu Hengli Hydraulic Co. Ltd., Class A     343,200       2,847,644  
Jiangsu Hengrui Medicine Co. Ltd., Class A     1,208,765       14,541,079  
Jiangsu King’s Luck Brewery JSC Ltd., Class A     536,813       2,265,455  
Jiangsu Yanghe Brewery Joint-Stock Co. Ltd., Class A     377,350       5,256,837  
Jiangsu Zhongnan Construction Group Co. Ltd., Class A     1,721,687       2,044,291  
Jiangxi Copper Co. Ltd., Class A     136,500       267,329  
Jiangxi Copper Co. Ltd., Class H     6,825,000       8,004,632  
Jiangxi Zhengbang Technology Co. Ltd., Class A     790,324       1,709,493  
Jinke Properties Group Co. Ltd., Class A     2,477,882       2,669,230  
Jonjee Hi-Tech Industrial And Commercial Holding Co. Ltd., Class A     352,325       1,905,222  
JOYY Inc.(a)(b)     260,732       14,071,706  
Juewei Food Co. Ltd., Class A     364,614       2,118,769  
Kaisa Group Holdings Ltd.     11,214,000       4,978,852  
Security   Shares     Value  
                 
China (continued)                
Kingboard Holdings Ltd.     3,153,500     $ 8,335,902  
Kingboard Laminates Holdings Ltd.     4,973,000       4,958,291  
Kingdee International Software Group Co. Ltd.(b)     10,524,000       13,463,827  
Kingsoft Corp. Ltd.(a)     3,739,000       12,090,619  
Kunlun Energy Co. Ltd.     15,282,000       10,667,721  
Kweichow Moutai Co. Ltd., Class A     341,187       51,591,465  
KWG Group Holdings Ltd.     5,802,000       8,502,299  
Lee & Man Paper Manufacturing Ltd.     6,155,000       4,802,022  
Legend Holdings Corp., Class H(c)     1,808,700       3,110,025  
Lenovo Group Ltd.(b)     32,334,000       19,957,082  
Lens Technology Co. Ltd., Class A     858,300       2,390,647  
Lepu Medical Technology Beijing Co. Ltd., Class A     569,835       2,796,106  
Li Ning Co. Ltd.     8,849,000       23,277,728  
Lingyi iTech Guangdong Co., Class A(a)     1,655,680       2,683,593  
Logan Property Holdings Co. Ltd.     6,276,000       10,710,928  
Longfor Group Holdings Ltd.(b)(c)     8,044,500       37,213,187  
LONGi Green Energy Technology Co. Ltd., Class A     988,541       4,341,537  
Luckin Coffee Inc., ADR(a)     274,131       10,844,622  
Luxshare Precision Industry Co. Ltd., Class A.     1,417,448       9,692,715  
Luye Pharma Group Ltd.(b)(c)     5,346,000       3,258,480  
Luzhou Laojiao Co. Ltd., Class A     409,639       4,383,422  
Maanshan Iron & Steel Co. Ltd., Class A     7,699,700       3,051,153  
Maanshan Iron & Steel Co. Ltd., Class H     2,498,000       913,545  
Mango Excellent Media Co. Ltd., Class A(a)     522,100       3,291,601  
Meinian Onehealth Healthcare Holdings Co. Ltd., Class A     1,246,280       2,348,074  
Meituan Dianping, Class B(a)     4,532,500       57,521,028  
Metallurgical Corp. of China Ltd., Class A     8,835,690       3,438,110  
Metallurgical Corp. of China Ltd., Class H     9,372,000       1,815,941  
Momo Inc., ADR     673,139       18,928,669  
Muyuan Foodstuff Co. Ltd., Class A     586,050       9,767,221  
Nanjing King-Friend Biochemical Pharmaceutical Co. Ltd., Class A     256,090       1,832,512  
Nanjing Securities Co. Ltd., Class A     898,500       1,736,536  
NARI Technology Co. Ltd., Class A     1,268,083       3,597,334  
NAURA Technology Group Co. Ltd., Class A     144,600       3,061,750  
NavInfo Co. Ltd., Class A     874,000       2,140,551  
NetEase Inc., ADR     317,079       101,056,248  
New China Life Insurance Co. Ltd., Class A     753,892       4,764,806  
New China Life Insurance Co. Ltd., Class H     3,489,400       13,276,023  
New Hope Liuhe Co. Ltd., Class A     1,164,197       4,030,438  
New Oriental Education & Technology Group Inc., ADR(a)(b)     636,518       81,404,287  
Nexteer Automotive Group Ltd.     4,154,000       3,059,644  
Nine Dragons Paper Holdings Ltd.(b)     7,489,000       8,841,057  
Ninestar Corp., Class A     388,600       2,311,520  
Ningbo Joyson Electronic Corp., Class A(a)     351,700       1,321,730  
Ningbo Zhoushan Port Co. Ltd., Class A     707,300       332,897  
NIO Inc., ADR(a)(b)     2,937,932       12,133,659  
Noah Holdings Ltd.(a)(b)     154,089       4,373,046  
OFILM Group Co. Ltd., Class A(a)     864,465       2,287,861  
Orient Securities Co. Ltd., Class A     1,814,386       2,587,827  
Oriental Pearl Group Co. Ltd., Class A     212,800       309,297  
Ovctek China Inc., Class A     212,400       1,713,736  
People’s Insurance Co. Group of China Ltd. (The), Class A     1,399,400       1,355,317  
People’s Insurance Co. Group of China Ltd. (The), Class H     37,367,000       13,233,961  
Perfect World Co. Ltd., Class A     436,000       3,184,144  


S c h e d u l e    o f    I n v e s t m e n t s 13

 

 

 

 

 

Consolidated Schedule of Investments (unaudited) (continued) iShares® MSCI Emerging Markets ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
                 
China (continued)                
PetroChina Co. Ltd., Class A     3,396,100     $ 2,463,195  
PetroChina Co. Ltd., Class H     95,784,000       37,118,674  
PICC Property & Casualty Co. Ltd., Class H     30,845,192       31,941,371  
Pinduoduo Inc., ADR(a)(b)     863,144       30,883,292  
Ping An Bank Co. Ltd., Class A     5,047,867       10,470,955  
Ping An Healthcare and Technology Co. Ltd.(a)(c)     1,456,000       14,227,344  
Ping An Insurance Group Co. of China Ltd., Class A     2,662,684       29,604,847  
Ping An Insurance Group Co. of China Ltd., Class H     25,249,500       280,746,200  
Poly Developments and Holdings Group Co. Ltd., Class A     3,140,784       7,274,369  
Postal Savings Bank of China Co. Ltd., Class H(c)     35,695,000       22,535,387  
Power Construction Corp. of China Ltd., Class A     4,698,400       2,856,599  
RiseSun Real Estate Development Co. Ltd., Class A     2,423,200       2,967,382  
Rongsheng Petro Chemical Co. Ltd., Class A     1,879,872       2,783,422  
SAIC Motor Corp. Ltd., Class A     1,922,406       6,108,071  
Sanan Optoelectronics Co. Ltd., Class A     1,175,200       4,144,185  
Sangfor Technologies Inc., Class A     107,300       3,057,732  
Sany Heavy Industry Co. Ltd., Class A     2,317,152       5,777,797  
SDIC Capital Co. Ltd., Class A     1,328,300       2,462,700  
SDIC Power Holdings Co. Ltd., Class A     2,121,790       2,294,746  
Seazen Group Ltd(b)     9,244,000       9,501,343  
Seazen Holdings Co. Ltd., Class A     612,973       2,814,860  
Semiconductor Manufacturing International Corp.(a)(b)     13,534,499       26,224,769  
SF Holding Co. Ltd., Class A     574,900       4,025,830  
Shaanxi Coal Industry Co. Ltd., Class A     2,543,370       2,874,399  
Shandong Gold Mining Co. Ltd., Class A     753,540       3,656,559  
Shandong Weigao Group Medical Polymer Co. Ltd., Class H     9,332,000       12,022,671  
Shanghai Baosight Software Co. Ltd., Class A     328,330       2,131,970  
Shanghai Construction Group Co. Ltd., Class A     7,083,495       3,394,711  
Shanghai Electric Group Co. Ltd., Class A     404,500       259,822  
Shanghai Electric Group Co. Ltd., Class H     15,836,000       4,470,547  
Shanghai Fosun Pharmaceutical Group Co. Ltd., Class A     893,800       3,437,004  
Shanghai Fosun Pharmaceutical Group Co. Ltd., Class H     2,090,500       5,888,128  
Shanghai Industrial Holdings Ltd.     2,686,000       4,742,605  
Shanghai International Airport Co. Ltd., Class A     279,098       2,623,606  
Shanghai International Port Group Co. Ltd., Class A     3,954,899       2,568,631  
Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd., Class B     5,264,406       4,169,410  
Shanghai M&G Stationery Inc., Class A     385,337       2,447,564  
Shanghai Pharmaceuticals Holding Co. Ltd., Class A     100       267  
Shanghai Pharmaceuticals Holding Co. Ltd., Class H     4,310,400       7,887,323  
Shanghai Pudong Development Bank Co. Ltd., Class A     7,271,696       11,286,931  
Shanghai RAAS Blood Products Co. Ltd., Class A(a)     1,454,800       1,895,973  
Shanxi Meijin Energy Co. Ltd., Class A(a)     1,354,700       1,616,291  
Shanxi Xinghuacun Fen Wine Factory Co. Ltd., Class A     243,100       2,999,539  
Shengyi Technology Co. Ltd., Class A     717,100       3,164,793  
Shennan Circuits Co. Ltd., Class A     107,000       3,177,457  
Security   Shares     Value  
                 
China (continued)                
Shenwan Hongyuan Group Co. Ltd., Class A     8,029,040     $ 5,375,512  
Shenzhen Expressway Co. Ltd., Class H     1,878,000       2,272,479  
Shenzhen Goodix Technology Co. Ltd., Class A     108,200       4,796,265  
Shenzhen Inovance Technology Co. Ltd., Class A     823,600       3,335,543  
Shenzhen International Holdings Ltd.     4,527,000       8,667,061  
Shenzhen Investment Ltd.     13,592,000       4,569,590  
Shenzhen Kangtai Biological Products Co. Ltd., Class A     209,386       3,325,817  
Shenzhen Mindray Bio-Medical Electronics Co. Ltd., Class A     165,232       5,649,402  
Shenzhen Overseas Chinese Town Co. Ltd., Class A     4,347,900       4,061,656  
Shenzhen Sunway Communication Co. Ltd., Class A(a)     349,740       2,498,143  
Shenzhou International Group Holdings Ltd.     3,410,500       41,903,411  
Shimao Property Holdings Ltd.     5,203,500       18,629,118  
Shui On Land Ltd.     17,776,500       3,535,660  
Sichuan Chuantou Energy Co. Ltd., Class A     2,645,560       3,462,973  
Sichuan Kelun Pharmaceutical Co. Ltd., Class A     613,500       2,014,223  
Sichuan Swellfun Co. Ltd., Class A     191,393       1,231,561  
SINA Corp.(a)(b)     280,501       9,186,408  
Sino Biopharmaceutical Ltd.(b)     31,099,500       45,014,771  
Sino-Ocean Group Holding Ltd.     14,567,000       5,289,920  
Sinopec Engineering Group Co. Ltd., Class H     6,540,500       3,239,596  
Sinopec Shanghai Petrochemical Co. Ltd., Class H     17,589,000       4,491,452  
Sinopharm Group Co. Ltd., Class H     5,736,800       17,704,242  
Sinotrans Ltd., Class H     10,038,000       2,833,756  
Sinotruk Hong Kong Ltd.     3,175,500       6,071,429  
SOHO China Ltd.     10,201,500       3,691,524  
Songcheng Performance Development Co. Ltd., Class A     700,663       2,764,483  
Spring Airlines Co. Ltd., Class A     557,573       2,839,632  
SSY Group Ltd.     7,142,000       5,984,468  
Sun Art Retail Group Ltd.     10,934,000       13,974,328  
Sunac China Holdings Ltd.     10,959,000       59,765,753  
Suning.com Co. Ltd., Class A     2,866,738       3,805,804  
Sunny Optical Technology Group Co. Ltd.     3,189,500       49,604,122  
Suzhou Dongshan Precision Manufacturing Co. Ltd., Class A     530,100       2,146,123  
TAL Education Group, ADR(a)(b)     1,722,064       93,663,061  
TCL Technology Group Corp., Class A     4,785,055       4,025,081  
Tencent Holdings Ltd.     25,623,700       1,269,175,509  
Tencent Music Entertainment Group, ADR(a)(b)     418,684       5,078,637  
Tianjin Zhonghuan Semiconductor Co. Ltd., Class A     905,593       2,277,521  
Tianma Microelectronics Co. Ltd., Class A     865,579       2,006,006  
Tianqi Lithium Corp., Class A     499,604       2,267,094  
Tingyi Cayman Islands Holding Corp.     8,942,000       16,270,595  
Tonghua Dongbao Pharmaceutical Co. Ltd., Class A     856,600       1,396,990  
Tongwei Co. Ltd., Class A     1,204,784       2,973,094  
Topchoice Medical Corp., Class A(a)     154,800       2,305,103  
Topsports International Holdings Ltd.(c)     2,609,000       3,016,417  
Towngas China Co. Ltd.     4,886,000       2,833,899  
Transfar Zhilian Co. Ltd., Class A     1,538,198       1,368,715  
TravelSky Technology Ltd., Class H     4,314,000       8,436,409  
Trip.com Group Ltd., ADR(a)(b)     2,105,099       63,910,806  
Tsingtao Brewery Co. Ltd., Class A     332,300       2,029,872  
Tsingtao Brewery Co. Ltd., Class H     1,692,000       8,793,220  


14 2 0 2 0    I S h a r e s    S e m i - A n n u a l    R e p o r t    t o    S h a r e h o l d e r s

 

 

 

 

Consolidated Schedule of Investments (unaudited) (continued) iShares® MSCI Emerging Markets ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
                 
China (continued)                
Unigroup Guoxin Microelectronics Co. Ltd., Class A     243,000     $ 2,014,513  
Uni-President China Holdings Ltd.     6,074,000       6,266,476  
Unisplendour Corp. Ltd., Class A     601,763       3,910,056  
Venustech Group Inc., Class A     448,703       2,669,674  
Vipshop Holdings Ltd., ADR(a)(b)     1,968,594       25,257,061  
Walvax Biotechnology Co. Ltd., Class A     614,494       2,514,167  
Wanda Film Holding Co. Ltd., Class A(a)     398,452       923,425  
Wanhua Chemical Group Co. Ltd., Class A     850,191       5,721,293  
Want Want China Holdings Ltd.     22,918,000       17,703,769  
Weibo Corp., ADR(a)(b)     248,365       10,466,101  
Weichai Power Co. Ltd., Class A     1,720,444       3,526,932  
Weichai Power Co. Ltd., Class H     8,721,800       17,168,171  
Wens Foodstuffs Group Co. Ltd., Class A     1,367,575       6,364,226  
Western Securities Co. Ltd., Class A     290,180       393,122  
Wharf Holdings Ltd. (The)     4,487,000       9,465,650  
Will Semiconductor Ltd., Class A     165,400       4,122,341  
Wingtech Technology Co. Ltd., Class A(a)     84,200       1,678,772  
Winning Health Technology Group Co. Ltd., Class A     688,565       2,533,532  
Wuhan Guide Infrared Co. Ltd., Class A     257,200       1,745,157  
Wuhu Sanqi Interactive Entertainment Network Technology Group Co. Ltd., Class A     659,788       3,195,963  
Wuliangye Yibin Co. Ltd., Class A     1,049,903       18,113,688  
WUS Printed Circuit Kunshan Co. Ltd., Class A     521,083       1,945,619  
WuXi AppTec Co. Ltd., Class A     449,720       6,819,593  
WuXi AppTec Co. Ltd., Class H(c)     665,980       9,819,147  
Wuxi Biologics Cayman Inc.(a)(c)     3,213,000       47,001,110  
Wuxi Lead Intelligent Equipment Co. Ltd., Class A     318,825       2,561,017  
XCMG Construction Machinery Co. Ltd., Class A     4,373,569       3,297,289  
Xiaomi Corp., Class B(a)(c)     44,197,800       71,233,261  
Xinhu Zhongbao Co. Ltd., Class A     2,782,050       1,253,678  
Xinjiang Goldwind Science & Technology Co. Ltd., Class A     1,947,793       2,931,359  
Xinjiang Goldwind Science & Technology Co. Ltd., Class H     2,229,246       2,214,071  
Xinyi Solar Holdings Ltd.     17,044,000       13,494,265  
Yantai Jereh Oilfield Services Group Co. Ltd., Class A     419,098       2,074,446  
Yanzhou Coal Mining Co. Ltd., Class H     8,638,800       6,551,390  
Yealink Network Technology Corp. Ltd., Class A     201,187       3,001,601  
Yifeng Pharmacy Chain Co. Ltd., Class A     177,685       2,076,745  
Yihai International Holding Ltd.     2,146,000       14,360,732  
Yonghui Superstores Co. Ltd., Class A     2,706,500       3,329,790  
Yonyou Network Technology Co. Ltd., Class A     703,869       4,637,951  
Yuexiu Property Co. Ltd.     31,884,000       6,505,227  
Yum China Holdings Inc.     1,596,831       69,925,230  
Yunda Holding Co. Ltd., Class A     659,665       2,791,464  
Yunnan Baiyao Group Co. Ltd., Class A     364,945       4,108,255  
Yunnan Energy New Material Co. Ltd., Class A     143,200       1,195,143  
Yuzhou Properties Co. Ltd.     7,977,000       3,910,169  
Zai Lab Ltd., ADR(a)     95,326       5,240,070  
Zhangzhou Pientzehuang Pharmaceutical Co. Ltd., Class A     177,650       3,052,240  
Zhaojin Mining Industry Co. Ltd., Class H     5,243,000       6,250,116  
Zhejiang Chint Electrics Co. Ltd., Class A     958,686       3,698,859  
Zhejiang Dahua Technology Co. Ltd., Class A     1,239,084       3,435,302  
Zhejiang Expressway Co. Ltd., Class H     6,908,000       5,221,078  
Zhejiang Huayou Cobalt Co. Ltd., Class A     346,494       1,873,195  
Zhejiang Longsheng Group Co. Ltd., Class A     842,100       1,556,455  
Security   Shares     Value  
                 
China (continued)                
Zhejiang NHU Co. Ltd., Class A     950,278     $ 3,276,258  
Zhejiang Sanhua Intelligent Controls Co. Ltd., Class A     1,047,398       2,978,781  
Zhejiang Supor Co. Ltd., Class A     278,882       2,930,372  
Zhejiang Wolwo Bio-Pharmaceutical Co. Ltd., Class A     205,947       1,272,180  
Zhengzhou Yutong Bus Co. Ltd., Class A     1,169,867       2,523,761  
Zhenro Properties Group Ltd.     5,943,000       3,866,395  
ZhongAn Online P&C Insurance Co. Ltd., Class H(a)(b)(c)     1,407,900       5,925,680  
Zhongji Innolight Co. Ltd., Class A     124,000       1,100,535  
Zhongsheng Group Holdings Ltd.(b)     2,619,500       9,966,339  
Zhuzhou CRRC Times Electric Co. Ltd., Class H     2,503,800       8,755,051  
Zijin Mining Group Co. Ltd., Class A     5,854,500       3,484,124  
Zijin Mining Group Co. Ltd., Class H     25,666,000       11,527,066  
Zoomlion Heavy Industry Science and Technology Co. Ltd., Class A     1,881,168       1,690,042  
Zoomlion Heavy Industry Science and Technology                
Co. Ltd., Class H     5,601,400       4,643,245  
ZTE Corp., Class A(a)     990,800       7,087,065  
ZTE Corp., Class H(a)     3,507,800       14,516,338  
ZTO Express Cayman Inc., ADR     1,417,189       33,247,254  
              9,273,226,608  
Colombia — 0.2%                
Bancolombia SA     1,032,467       11,351,996  
Ecopetrol SA     21,871,488       19,145,707  
Grupo Argos SA     1,409,480       5,960,486  
Grupo de Inversiones Suramericana SA     1,192,842       10,256,855  
Interconexion Electrica SA ESP     1,990,575       10,438,136  
              57,153,180  
Czech Republic — 0.1%                
CEZ AS     676,122       12,865,079  
Komercni Banka AS     330,742       10,080,077  
Moneta Money Bank AS(c)     2,195,036       7,238,660  
              30,183,816  
Egypt — 0.2%                
Commercial International Bank Egypt SAE     6,543,975       34,560,728  
Eastern Co. SAE     5,085,308       4,664,853  
EISewedy Electric Co.     4,013,196       2,426,016  
              41,651,597  
Greece — 0.2%                
Alpha Bank AE(a)     8,371,733       11,835,158  
Eurobank Ergasias SA(a)     11,515,599       7,159,507  
FF Group(a)(d)     246,892       2,712  
Hellenic Telecommunications Organization SA     1,019,182       14,352,248  
Jumbo SA     480,080       7,498,828  
Motor Oil Hellas Corinth Refineries SA     272,395       4,428,340  
National Bank of Greece SA(a)     2,456,642       5,395,646  
OPAP SA     824,351       8,783,428  
Titan Cement International SA(a)     217,361       3,051,354  
              62,507,221  
Hungary — 0.3%                
MOL Hungarian Oil & Gas PLC     1,830,463       14,077,592  
OTP Bank Nyrt     1,001,579       43,304,211  
Richter Gedeon Nyrt     646,727       13,076,216  
              70,458,019  
India — 8.7%                
Adani Ports & Special Economic Zone Ltd.     2,756,807       13,072,080  


S c h e d u l e    o f    I n v e s t m e n t s 15

 

 

 

 

 

Consolidated Schedule of Investments (unaudited) (continued) iShares® MSCI Emerging Markets ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
                 
India (continued)                
Ambuja Cements Ltd.     2,700,979     $ 7,674,310  
Ashok Leyland Ltd.     5,334,660       5,167,045  
Asian Paints Ltd.     1,285,103       32,016,502  
Aurobindo Pharma Ltd.     1,205,098       8,441,155  
Avenue Supermarts Ltd.(a)(c)     562,377       18,109,759  
Axis Bank Ltd.     9,306,554       89,922,196  
Bajaj Auto Ltd.     372,758       14,927,365  
Bajaj Finance Ltd.     788,594       48,799,564  
Bajaj Finserv Ltd.     171,809       21,547,100  
Bandhan Bank Ltd.(c)     1,740,850       9,250,923  
Berger Paints India Ltd.     941,090       7,388,015  
Bharat Forge Ltd.     952,391       5,745,953  
Bharat Petroleum Corp. Ltd.     2,915,912       17,226,578  
Bharti Airtel Ltd.(a)     10,910,719       79,145,895  
Bharti Infratel Ltd.     1,522,279       4,523,542  
Bosch Ltd.     34,517       5,800,917  
Britannia Industries Ltd.     260,556       10,723,711  
Cipla Ltd.     1,568,762       8,740,766  
Coal India Ltd.     5,549,858       12,950,374  
Colgate-Palmolive India Ltd.     253,195       4,509,743  
Container Corp. of India Ltd.     953,945       6,736,801  
Dabur India Ltd.     2,406,206       16,540,947  
Divi’s Laboratories Ltd.     364,042       10,628,306  
DLF Ltd.     2,462,297       6,881,842  
Dr. Reddy’s Laboratories Ltd.     519,033       21,051,879  
Eicher Motors Ltd.     59,541       13,697,586  
GAIL India Ltd.     7,108,128       10,282,864  
Godrej Consumer Products Ltd.     1,610,139       12,505,392  
Grasim Industries Ltd.     1,340,332       12,763,033  
Havells India Ltd.     1,122,454       9,535,046  
HCL Technologies Ltd.     4,838,050       35,822,386  
HDFC Asset Management Co. Ltd.(c)     179,324       7,805,846  
HDFC Life Insurance Co. Ltd.(c)     2,269,673       17,111,984  
Hero MotoCorp Ltd.     433,421       12,322,327  
Hindalco Industries Ltd.     5,366,991       11,594,054  
Hindustan Petroleum Corp. Ltd.     2,753,845       7,538,325  
Hindustan Unilever Ltd.     2,902,917       87,478,695  
Housing Development Finance Corp. Ltd.     7,302,934       220,173,328  
ICICI Bank Ltd.     21,288,033       146,679,245  
ICICI Lombard General Insurance Co. Ltd.(c)     745,098       12,767,873  
ICICI Prudential Life Insurance Co. Ltd.(c)     1,352,814       8,836,616  
Indian Oil Corp. Ltd.     8,428,182       12,350,161  
Info Edge India Ltd.     248,791       8,940,342  
Infosys Ltd.     15,188,459       153,994,464  
InterGlobe Aviation Ltd.(c)     419,010       7,548,189  
ITC Ltd.     15,352,420       42,025,435  
JSW Steel Ltd.     3,880,832       12,674,848  
Larsen & Toubro Ltd.     2,085,712       34,321,367  
LIC Housing Finance Ltd.     1,304,626       5,789,399  
Lupin Ltd.     1,007,085       8,931,089  
Mahindra & Mahindra Financial Services Ltd.     1,388,811       6,605,596  
Mahindra & Mahindra Ltd.     3,322,946       21,044,826  
Marico Ltd.     2,042,372       8,454,756  
Maruti Suzuki India Ltd.     468,496       40,788,544  
Motherson Sumi Systems Ltd.     4,214,504       6,053,048  
Nestle India Ltd.     104,360       22,817,484  
NTPC Ltd.     10,574,769       15,612,868  
Oil & Natural Gas Corp. Ltd.     11,150,096       14,206,552  
Page Industries Ltd.     25,197       7,732,242  
Petronet LNG Ltd.     2,775,590       9,445,871  
Security   Shares     Value  
                 
India (continued)                
Pidilite Industries Ltd.     561,639     $ 11,775,605  
Piramal Enterprises Ltd.     436,414       7,901,018  
Power Grid Corp. of India Ltd.     8,091,214       20,349,262  
REC Ltd.     3,150,065       5,141,894  
Reliance Industries Ltd.     12,719,911       234,181,727  
SBI Life Insurance Co. Ltd.(c)     1,491,468       18,401,678  
Shree Cement Ltd.     38,203       12,001,224  
Shriram Transport Finance Co. Ltd.     588,201       9,750,440  
Siemens Ltd.     278,310       5,027,840  
State Bank of India(a)     7,947,290       33,367,220  
Sun Pharmaceutical Industries Ltd.     3,786,154       19,563,610  
Tata Consultancy Services Ltd.     4,011,521       111,180,846  
Tata Motors Ltd.(a)     7,181,134       12,831,361  
Tata Power Co. Ltd. (The)     4,933,902       3,192,756  
Tata Steel Ltd.     1,552,955       8,214,786  
Tech Mahindra Ltd.     2,076,204       21,415,821  
Titan Co. Ltd.     1,391,175       24,183,033  
UltraTech Cement Ltd.     449,382       26,275,156  
United Spirits Ltd.(a)     1,328,118       12,631,084  
UPL Ltd.     2,406,761       17,331,814  
Vedanta Ltd.     8,394,101       13,259,812  
Wipro Ltd.     5,119,192       15,708,526  
Zee Entertainment Enterprises Ltd.     3,792,247       12,574,701  
              2,210,036,163  
Indonesia — 1.8%                
Ace Hardware Indonesia Tbk PT     13,926,900       1,470,587  
Adaro Energy Tbk PT     66,265,200       5,334,470  
Astra International Tbk PT     90,049,200       34,676,552  
Bank Central Asia Tbk PT     43,788,500       95,985,246  
Bank Mandiri Persero Tbk PT     83,248,900       42,211,936  
Bank Negara Indonesia Persero Tbk PT     33,494,276       16,399,881  
Bank Rakyat Indonesia Persero Tbk PT     247,173,410       72,183,766  
Bank Tabungan Negara Persero Tbk PT     19,225,000       2,277,923  
Barito Pacific Tbk PT(a)     120,650,600       8,283,035  
Bukit Asam Tbk PT     13,597,100       2,122,844  
Bumi Serpong Damai Tbk PT(a)     36,513,600       2,544,945  
Charoen Pokphand Indonesia Tbk PT     33,257,445       13,212,576  
Gudang Garam Tbk PT     2,187,600       7,776,100  
Hanjaya Mandala Sampoerna Tbk PT     42,572,300       5,044,287  
Indah Kiat Pulp & Paper Corp. Tbk PT     12,472,900       4,890,055  
Indocement Tunggal Prakarsa Tbk PT     8,426,400       8,765,570  
Indofood CBP Sukses Makmur Tbk PT     10,698,100       7,661,473  
Indofood Sukses Makmur Tbk PT     20,083,000       9,098,414  
Jasa Marga Persero Tbk PT     10,358,195       3,378,732  
Kalbe Farma Tbk PT     98,638,915       8,387,487  
Pabrik Kertas Tjiwi Kimia Tbk PT     6,403,900       2,678,055  
Pakuwon Jati Tbk PT     81,378,500       3,006,141  
Perusahaan Gas Negara Tbk PT     49,124,300       4,382,583  
Semen Indonesia Persero Tbk PT     13,455,200       9,823,539  
Telekomunikasi Indonesia Persero Tbk PT     221,598,000       53,903,260  
Unilever Indonesia Tbk PT     33,713,700       16,037,359  
United Tractors Tbk PT     7,665,353       8,868,783  
XL Axiata Tbk PT(a)     12,568,100       2,268,784  
              452,674,383  
Malaysia — 1.8%                
AirAsia Group Bhd     6,664,200       1,581,068  
AMMB Holdings Bhd     7,747,675       6,801,043  
Axiata Group Bhd     12,418,500       12,315,381  
British American Tobacco Malaysia Bhd     16,900       49,878  


16 2 0 2 0    I S h a r e s    S e m i - A n n u a l    R e p o r t    t o    S h a r e h o l d e r s

 

 

 

 

Consolidated Schedule of Investments (unaudited) (continued) iShares® MSCI Emerging Markets ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
                 
Malaysia (continued)                
Carlsberg Brewery Malaysia Bhd     233,300     $ 1,762,342  
CIMB Group Holdings Bhd     21,640,000       24,746,097  
Dialog Group Bhd     16,498,912       13,073,871  
DiGi.Com Bhd     13,928,000       13,746,259  
Fraser & Neave Holdings Bhd     604,200       4,403,564  
Gamuda Bhd     7,871,500       6,181,415  
Genting Bhd     9,698,000       11,389,110  
Genting Malaysia Bhd     13,446,300       9,219,409  
Genting Plantations Bhd     1,351,500       3,212,819  
HAP Seng Consolidated Bhd     2,781,000       5,911,687  
Hartalega Holdings Bhd     6,786,000       9,981,779  
Hong Leong Bank Bhd     2,979,400       10,814,904  
Hong Leong Financial Group Bhd     1,051,900       3,818,285  
IHH Healthcare Bhd     9,931,700       13,430,769  
IJM Corp. Bhd     12,783,240       5,883,626  
IOI Corp. Bhd     8,875,220       8,780,467  
Kuala Lumpur Kepong Bhd     1,948,800       10,097,697  
Malayan Banking Bhd     17,249,400       34,457,876  
Malaysia Airports Holdings Bhd     4,787,800       7,485,552  
Maxis Bhd(b)     10,463,200       13,479,283  
MISC Bhd     5,108,300       9,198,576  
Nestle Malaysia Bhd     307,300       10,425,599  
Petronas Chemicals Group Bhd     10,955,700       14,035,772  
Petronas Dagangan Bhd     1,078,900       5,846,281  
Petronas Gas Bhd     3,027,300       11,936,827  
PPB Group Bhd     2,739,160       11,762,466  
Press Metal Aluminium Holdings Bhd(b)     6,684,000       7,389,665  
Public Bank Bhd     13,951,930       56,602,136  
QL Resources Bhd     2,627,000       5,085,722  
RHB Bank Bhd     6,924,325       9,117,439  
RHB Capital Bhd(a)(d)     3,214,200       8  
Sime Darby Bhd     12,134,573       5,757,805  
Sime Darby Plantation Bhd     9,577,673       11,270,524  
Telekom Malaysia Bhd     5,079,800       4,459,136  
Tenaga Nasional Bhd     14,055,550       40,349,266  
Top Glove Corp. Bhd     6,918,900       9,258,030  
Westports Holdings Bhd     4,317,100       3,523,327  
YTL Corp. Bhd     13,984,189       2,803,473  
              451,446,233  
Mexico — 2.3%                
Alfa SAB de CV, Class A     13,297,100       8,443,136  
Alsea SAB de CV(a)     2,352,900       4,744,665  
America Movil SAB de CV, Series L, NVS     149,709,100       117,368,486  
Arca Continental SAB de CV     1,899,536       10,361,978  
Cemex SAB de CV, CPO, NVS     67,286,373       21,549,042  
Coca-Cola Femsa SAB de CV     2,334,793       12,853,067  
El Puerto de Liverpool SAB de CV, Series C1, NVS(b)     868,965       4,029,989  
Fibra Uno Administracion SA de CV     14,052,000       21,003,646  
Fomento Economico Mexicano SAB de CV     8,628,300       69,391,642  
Gruma SAB de CV, Series B     930,765       8,888,967  
Grupo Aeroportuario del Pacifico SAB de CV, Series B     1,593,500       17,198,354  
Grupo Aeroportuario del Sureste SAB de CV, Class B     929,245       15,250,292  
Grupo Bimbo SAB de CV, Series A(b)     7,319,300       10,977,194  
Grupo Carso SAB de CV, Series A1     2,181,841       5,954,834  
Grupo Financiero Banorte SAB de CV, Class O     11,516,456       62,036,969  
Grupo Financiero Inbursa SAB de CV, Class O(b)     10,534,300       11,238,573  
Grupo Mexico SAB de CV, Series B     15,611,188       36,606,034  
Security   Shares     Value  
                 
Mexico (continued)                
Grupo Televisa SAB, CPO     10,798,800     $ 20,090,410  
Industrias Penoles SAB de CV     637,333       5,712,543  
Infraestructura Energetica Nova SAB de CV     2,376,300       10,277,514  
Kimberly-Clark de Mexico SAB de CV, Class A     6,777,200       12,759,136  
Megacable Holdings SAB de CV, CPO     1,360,860       4,530,128  
Orbia Advance Corp. SAB de CV     4,693,634       9,125,753  
Promotora y Operadora de Infraestructura SAB de CV     1,023,275       9,931,141  
Wal-Mart de Mexico SAB de CV     23,149,200       64,548,574  
              574,872,067  
Pakistan — 0.0%                
Habib Bank Ltd.     2,909,900       2,951,980  
MCB Bank Ltd.     1,917,200       2,430,566  
Oil & Gas Development Co. Ltd.     3,194,800       2,431,318  
              7,813,864  
Peru — 0.3%                
Cia. de Minas Buenaventura SAA, ADR     981,954       10,948,787  
Credicorp Ltd.     294,900       53,456,523  
Southern Copper Corp.     371,572       12,503,398  
              76,908,708  
Philippines — 0.9%                
Aboitiz Equity Ventures Inc.     9,356,010       7,828,030  
Aboitiz Power Corp.     6,176,164       3,331,918  
Altus San Nicolas Corp.     195,768       19,947  
Ayala Corp.     1,262,646       16,410,063  
Ayala Land Inc.     33,185,600       25,389,669  
Bank of the Philippine Islands     4,176,564       6,071,278  
BDO Unibank Inc.     8,922,421       24,329,897  
Globe Telecom Inc.     157,180       5,485,497  
GT Capital Holdings Inc.     446,822       6,232,279  
International Container Terminal Services Inc.     4,297,540       8,936,523  
JG Summit Holdings Inc.     13,117,424       17,369,811  
Jollibee Foods Corp.     2,054,769       6,852,589  
Manila Electric Co.     946,140       5,007,721  
Megaworld Corp.     51,798,900       3,454,954  
Metro Pacific Investments Corp.     66,576,500       4,009,610  
Metropolitan Bank & Trust Co.     7,479,945       8,224,638  
PLDT Inc.     400,898       7,785,954  
Robinsons Land Corp.     9,374,606       3,917,197  
Security Bank Corp.     1,025,260       3,105,447  
SM Investments Corp.     1,124,497       21,497,250  
SM Prime Holdings Inc.     45,472,225       34,165,497  
Universal Robina Corp.     4,122,180       11,426,465  
              230,852,234  
Poland — 0.8%                
Bank Millennium SA(a)     2,832,778       3,467,417  
Bank Polska Kasa Opieki SA     745,565       16,648,374  
CCC SA     134,383       2,452,344  
CD Projekt SA     301,433       21,292,284  
Cyfrowy Polsat SA     1,148,734       7,342,201  
Dino Polska SA(a)(c)     218,640       7,863,432  
Grupa Lotos SA     415,719       6,269,473  
KGHM Polska Miedz SA(a)     635,205       11,364,639  
LPP SA     5,837       10,215,157  
mBank SA(a)     67,334       5,089,287  
Orange Polska SA(a)     2,962,814       4,636,559  
PGE Polska Grupa Energetyczna SA(a)     3,737,438       4,237,286  
Polski Koncern Naftowy ORLEN SA     1,337,082       19,886,496  
Polskie Gornictwo Naftowe i Gazownictwo SA     7,841,654       6,300,850  


S c h e d u l e    o f    I n v e s t m e n t s 17

 

 

 

 

 

Consolidated Schedule of Investments (unaudited) (continued) iShares® MSCI Emerging Markets ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
                 
Poland (continued)                
Powszechna Kasa Oszczednosci Bank Polski SA     3,866,735     $ 30,687,128  
Powszechny Zaklad Ubezpieczen SA     2,662,845       23,469,669  
Santander Bank Polska SA     160,348       10,199,934  
              191,422,530  
Qatar — 0.9%                
Barwa Real Estate Co.     5,787,019       4,894,486  
Commercial Bank PSQC (The)     9,387,325       11,589,132  
Industries Qatar QSC     8,184,175       20,073,591  
Masraf Al Rayan QSC     17,324,179       19,237,009  
Mesaieed Petrochemical Holding Co.     19,863,368       9,592,165  
Ooredoo QPSC     3,794,829       6,547,486  
Qatar Electricity & Water Co. QSC     2,441,111       10,023,387  
Qatar Fuel QSC     2,432,155       12,806,753  
Qatar Insurance Co. SAQ     7,790,811       5,739,009  
Qatar International Islamic Bank QSC     2,051,870       4,758,381  
Qatar Islamic Bank SAQ     5,303,145       22,570,884  
Qatar National Bank QPSC     20,261,545       104,146,320  
              231,978,603  
Russia — 3.5%                
Alrosa PJSC     11,579,660       12,301,666  
Gazprom PJSC     44,200,619       133,292,492  
Gazprom PJSC, ADR     1,726,875       10,413,056  
Inter RAO UES PJSC     162,109,000       12,553,798  
LUKOIL PJSC     1,836,184       155,734,088  
Magnit PJSC, GDR(e)     1,647,006       17,935,895  
Magnitogorsk Iron & Steel Works PJSC     10,354,800       6,161,260  
MMC Norilsk Nickel PJSC     282,038       84,989,129  
Mobile TeleSystems PJSC, ADR     2,215,909       21,494,317  
Moscow Exchange MICEX-RTS PJSC     6,072,120       8,952,763  
Novatek PJSC, GDR(e)     407,375       58,376,838  
Novolipetsk Steel PJSC     5,391,100       10,023,274  
PhosAgro PJSC, GDR(e)     559,415       6,159,159  
Polymetal International PLC     974,210       14,861,052  
Polyus PJSC     119,438       15,043,501  
Rosneft Oil Co. PJSC     5,008,197       30,064,087  
Rosneft Oil Co. PJSC, GDR(e)     291,820       1,765,511  
Sberbank of Russia PJSC     48,741,181       169,259,554  
Severstal PJSC     940,545       11,401,309  
Surgutneftegas PJSC     25,162,160       14,391,482  
Surgutneftegas PJSC, ADR     689,300       3,929,010  
Tatneft PJSC     6,817,058       68,130,002  
VTB Bank PJSC     14,436,581,998       9,308,588  
X5 Retail Group NV, GDR(e)     538,060       16,578,173  
              893,120,004  
Saudi Arabia — 2.5%                
Advanced Petrochemical Co.     344,878       4,123,092  
Al Rajhi Bank     5,546,667       91,520,375  
Alinma Bank     3,551,503       22,019,981  
Almarai Co. JSC     1,093,195       13,346,216  
Arab National Bank     2,262,104       15,255,559  
Bank AlBilad     1,560,713       9,967,928  
Bank Al-Jazira     2,034,709       7,549,820  
Banque Saudi Fransi     2,459,509       22,323,412  
Bupa Arabia for Cooperative Insurance Co.     119,515       3,090,219  
Co for Cooperative Insurance (The)(a)     240,232       4,405,694  
Dar Al Arkan Real Estate Development Co.(a)     2,549,102       6,366,809  
Emaar Economic City(a)     1,582,785       3,906,861  
Etihad Etisalat Co.(a)     1,830,674       11,194,365  
Jarir Marketing Co.     241,738       9,781,642  
Security   Shares     Value  
                 
Saudi Arabia (continued)                
National Commercial Bank     5,513,567     $ 65,107,562  
National Industrialization Co.(a)     1,501,237       4,714,000  
Rabigh Refining & Petrochemical Co.(a)     975,718       4,083,373  
Riyad Bank     5,510,119       32,195,604  
Sahara International Petrochemical Co.     1,509,934       6,278,814  
Samba Financial Group     4,540,453       32,496,645  
Saudi Airlines Catering Co.     125,477       3,050,381  
Saudi Arabian Fertilizer Co.     732,118       13,114,309  
Saudi Arabian Mining Co.(a)     1,896,305       19,258,755  
Saudi Arabian Oil Co.(a)(c)     4,903,717       43,592,953  
Saudi Basic Industries Corp.     3,479,178       72,987,154  
Saudi British Bank (The)     2,970,085       22,326,109  
Saudi Cement Co.     302,131       4,912,699  
Saudi Electricity Co.     3,710,684       16,617,217  
Saudi Industrial Investment Group     870,103       4,889,183  
Saudi Kayan Petrochemical Co.(a)     3,616,490       8,541,144  
Saudi Telecom Co.     1,831,041       40,315,604  
Savola Group (The)(a)     1,129,775       10,073,564  
Yanbu National Petrochemical Co.     1,042,823       13,759,760  
              643,166,803  
South Africa — 4.2%                
Absa Group Ltd.     3,204,815       26,952,104  
Anglo American Platinum Ltd.     242,891       16,170,706  
AngloGold Ashanti Ltd.     1,858,857       32,821,709  
Aspen Pharmacare Holdings Ltd.(a)     1,757,669       11,172,927  
Bid Corp. Ltd.     1,511,068       26,715,402  
Bidvest Group Ltd. (The)     1,280,218       14,648,269  
Capitec Bank Holdings Ltd.     203,942       16,852,974  
Clicks Group Ltd.     1,182,598       17,703,450  
Discovery Ltd.     1,778,203       10,885,227  
Exxaro Resources Ltd.     1,137,138       8,095,824  
FirstRand Ltd.     14,869,322       52,099,102  
Fortress REIT Ltd., Series A     5,367,700       5,510,495  
Foschini Group Ltd. (The)     1,083,041       8,587,083  
Gold Fields Ltd.     3,712,143       21,761,042  
Growthpoint Properties Ltd.     13,450,259       15,047,806  
Impala Platinum Holdings Ltd.(a)     3,539,217       28,043,314  
Investec Ltd.     1,343,884       6,737,573  
Kumba Iron Ore Ltd.     291,898       5,207,832  
Liberty Holdings Ltd.     610,232       3,635,053  
Life Healthcare Group Holdings Ltd.     6,402,929       9,076,396  
Momentum Metropolitan Holdings     4,192,317       4,743,555  
Mr. Price Group Ltd.     1,162,298       11,154,189  
MTN Group Ltd.     7,569,633       35,462,731  
MultiChoice Group Ltd.(a)     2,006,202       11,531,055  
Naspers Ltd., Class N     1,974,093       298,776,149  
Nedbank Group Ltd.     1,659,396       18,629,242  
NEPI Rockcastle PLC     1,735,896       12,579,356  
Northam Platinum Ltd.(a)     1,522,689       10,764,278  
Old Mutual Ltd.     21,289,218       21,192,458  
Pepkor Holdings Ltd.(c)     2,447,126       2,389,337  
Pick n Pay Stores Ltd.     1,668,677       5,859,436  
PSG Group Ltd.     691,330       8,200,247  
Rand Merchant Investment Holdings Ltd.     3,535,830       5,589,810  
Redefine Properties Ltd.     24,691,750       8,522,786  
Reinet Investments SCA     672,212       13,774,973  
Remgro Ltd.     2,364,504       24,048,606  
RMB Holdings Ltd.     3,555,280       15,833,386  
Sanlam Ltd.     8,339,485       34,446,794  
Sasol Ltd.     2,507,822       29,635,070  


18 2 0 2 0    I S h a r e s    S e m i - A n n u a l    R e p o r t    t o    S h a r e h o l d e r s

 

 

 

 

Consolidated Schedule of Investments (unaudited) (continued) iShares® MSCI Emerging Markets ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
                 
South Africa (continued)                
Shoprite Holdings Ltd.     2,119,700     $ 15,107,317  
Sibanye Stillwater Ltd.(a)(b)     10,622,238       21,249,203  
SPAR Group Ltd. (The)     861,585       8,981,975  
Standard Bank Group Ltd.     5,727,761       54,068,112  
Telkom SA SOC Ltd.     1,281,205       2,124,008  
Tiger Brands Ltd.     727,708       7,003,926  
Vodacom Group Ltd.     2,851,305       19,877,483  
Woolworths Holdings Ltd.     4,504,687       10,236,949  
              1,049,506,719  
South Korea — 10.7%                
Amorepacific Corp.(a)(b)     142,109       18,838,657  
AMOREPACIFIC Group(a)     131,068       6,690,997  
BGF retail Co. Ltd.     36,570       4,561,840  
BNK Financial Group Inc.     1,250,879       6,354,816  
Celltrion Healthcare Co. Ltd.(a)(b)     238,927       12,748,019  
Celltrion Inc.(a)(b)     422,277       59,108,349  
Cheil Worldwide Inc.     322,330       5,135,517  
CJ CheilJedang Corp.     37,333       7,500,413  
CJ Corp.     63,999       4,242,009  
CJ ENM Co. Ltd.     50,592       5,240,406  
CJ Logistics Corp.(a)     40,871       4,492,613  
Coway Co. Ltd.     227,488       12,905,659  
Daelim Industrial Co. Ltd.(a)     123,751       7,387,359  
Daewoo Engineering & Construction Co. Ltd.(a)     824,306       2,748,818  
Daewoo Shipbuilding & Marine Engineering Co. Ltd.(a)     173,216       3,159,106  
DB Insurance Co. Ltd.     222,958       7,949,017  
Doosan Bobcat Inc.     224,070       5,239,677  
E-MART Inc.     94,203       8,144,352  
Fila Holdings Corp.(b)     221,703       7,009,794  
GS Engineering & Construction Corp.     266,761       5,765,728  
GS Holdings Corp.     229,609       7,798,577  
GS Retail Co. Ltd.     123,564       3,596,531  
Hana Financial Group Inc.     1,340,105       34,647,424  
Hankook Tire & Technology Co. Ltd.     330,941       6,948,535  
Hanmi Pharm Co. Ltd.(a)     29,456       6,330,190  
Hanon Systems     843,096       7,323,724  
Hanwha Corp.     179,889       2,969,761  
Hanwha Life Insurance Co. Ltd.     1,520,472       2,065,689  
Hanwha Solutions Corp.     473,118       6,953,608  
HDC Holdings Co. Ltd.     1       8  
HDC Hyundai Development Co-Engineering & Construction, Class E(b)     117,950       1,752,983  
Helixmith Co. Ltd.(a)(b)     86,722       4,434,283  
HLB Inc.(a)(b)     148,543       11,802,717  
Hotel Shilla Co. Ltd.(b)     141,507       9,356,124  
Hyundai Department Store Co. Ltd.     66,297       3,870,282  
Hyundai Engineering & Construction Co. Ltd.     347,220       9,920,571  
Hyundai Glovis Co. Ltd.     84,533       8,561,185  
Hyundai Heavy Industries Holdings Co. Ltd.     43,766       9,747,800  
Hyundai Marine & Fire Insurance Co. Ltd.     282,129       5,249,992  
Hyundai Mobis Co. Ltd.     296,628       51,290,144  
Hyundai Motor Co.     657,366       62,245,443  
Hyundai Steel Co.     365,454       7,176,680  
Industrial Bank of Korea(a)     1,121,674       8,783,137  
Kakao Corp.     226,944       32,140,278  
Kangwon Land Inc.(a)     536,256       10,067,218  
KB Financial Group Inc.     1,763,765       56,492,761  
KCC Corp.     22,366       3,066,232  
Kia Motors Corp.     1,170,720       34,943,269  
Security   Shares     Value  
                 
South Korea (continued)                
KMW Co. Ltd.(a)(b)     115,437     $ 4,624,133  
Korea Aerospace Industries Ltd.(a)     331,072       6,992,175  
Korea Electric Power Corp.(a)     1,137,599       19,951,304  
Korea Gas Corp.     122,236       2,828,186  
Korea Investment Holdings Co. Ltd.(a)     188,079       9,725,287  
Korea Shipbuilding & Offshore Engineering Co. Ltd.(a)     173,845       14,886,686  
Korea Zinc Co. Ltd.(a)     38,901       13,276,628  
Korean Air Lines Co. Ltd.(a)     207,187       3,804,257  
KT&G Corp.     519,529       36,232,282  
Kumho Petrochemical Co. Ltd.     83,184       4,061,598  
LG Chem Ltd.     203,871       61,774,004  
LG Corp.     424,080       23,569,699  
LG Display Co. Ltd.(a)(b)     1,043,193       11,681,700  
LG Electronics Inc.     468,876       23,318,329  
LG Household & Health Care Ltd.     41,581       41,803,541  
LG Innotek Co. Ltd.     64,193       6,871,215  
LG Uplus Corp.     606,472       6,591,544  
Lotte Chemical Corp.(b)     77,078       11,899,650  
Lotte Corp.(b)     130,179       3,113,792  
Lotte Shopping Co. Ltd.     51,407       4,029,598  
Medy-Tox Inc.(b)     20,729       5,009,437  
Meritz Securities Co. Ltd.(b)     1,365,757       3,907,786  
Mirae Asset Daewoo Co. Ltd.(a)     1,776,266       9,272,562  
NAVER Corp.     637,315       91,307,378  
NCSoft Corp.     73,380       39,212,532  
Netmarble Corp.(a)(b)(c)     116,919       8,529,455  
NH Investment & Securities Co. Ltd.(a)     625,530       5,140,214  
OCI Co. Ltd.(a)(b)     88,845       3,602,813  
Orion Corp.     108,908       8,456,175  
Ottogi Corp.     6,087       2,490,934  
Pan Ocean Co. Ltd.(a)     1,222,831       3,760,621  
Pearl Abyss Corp.(a)(b)     29,542       4,310,286  
POSCO     348,287       56,064,313  
POSCO Chemical Co. Ltd.(b)     109,351       4,943,079  
Posco International Corp.     223,053       2,745,692  
S-1 Corp.     79,314       5,368,144  
Samsung Biologics Co. Ltd.(a)(c)     73,942       28,219,117  
Samsung C&T Corp.     380,351       33,039,959  
Samsung Card Co. Ltd.     134,734       3,738,605  
Samsung Electro-Mechanics Co. Ltd.(b)     250,077       25,944,588  
Samsung Electronics Co. Ltd.     21,369,985       953,687,268  
Samsung Engineering Co. Ltd.(a)     699,610       8,122,273  
Samsung Fire & Marine Insurance Co. Ltd.     136,901       22,318,977  
Samsung Heavy Industries Co. Ltd.(a)(b)     1,972,622       9,469,235  
Samsung Life Insurance Co. Ltd.     311,419       15,000,421  
Samsung SDI Co. Ltd.     245,605       59,657,040  
Samsung SDS Co. Ltd.     154,808       21,223,163  
Samsung Securities Co. Ltd.     283,366       7,722,861  
Shinhan Financial Group Co. Ltd.     2,069,463       55,038,003  
Shinsegae Inc.     33,781       6,564,278  
SK Holdings Co. Ltd.     155,971       24,657,416  
SK Hynix Inc.     2,425,245       175,528,230  
SK Innovation Co. Ltd.     244,905       22,786,550  
SK Telecom Co. Ltd.     87,637       15,333,769  
S-Oil Corp.     202,337       11,095,631  
Woori Financial Group Inc.     2,345,486       18,559,177  
Yuhan Corp.     42,887       7,556,870  
              2,695,178,752  


S c h e d u l e    o f    I n v e s t m e n t s 19

 

 

 

 

Consolidated Schedule of Investments (unaudited) (continued) iShares® MSCI Emerging Markets ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
Spain — 0.0%            
AmRest Holdings SE(a)     223,159     $ 2,266,852  
                 
Taiwan — 12.0%                
Accton Technology Corp.     2,280,000       12,311,300  
Acer Inc.(b)     13,187,121       7,120,640  
Advantech Co. Ltd.     1,549,126       15,066,880  
Airtac International Group     567,000       9,016,348  
ASE Technology Holding Co. Ltd.     15,390,110       36,239,530  
Asia Cement Corp.     9,676,077       14,172,427  
Asustek Computer Inc.     3,113,968       21,185,205  
AU Optronics Corp.(b)     38,724,000       12,149,408  
Catcher Technology Co. Ltd.(b)     2,934,210       22,966,290  
Cathay Financial Holding Co. Ltd.     34,539,710       45,684,882  
Chailease Holding Co. Ltd.     5,324,991       20,224,045  
Chang Hwa Commercial Bank Ltd.     25,129,244       19,253,900  
Cheng Shin Rubber Industry Co. Ltd.     8,735,128       11,409,512  
Chicony Electronics Co. Ltd.     2,667,998       7,357,382  
China Airlines Ltd.     11,771,347       3,172,252  
China Development Financial Holding Corp.     58,115,848       17,580,910  
China Life Insurance Co. Ltd.(a)     12,017,490       9,584,781  
China Steel Corp.     53,371,313       40,540,306  
Chunghwa Telecom Co. Ltd.     16,816,410       59,980,260  
Compal Electronics Inc.     17,151,908       10,451,054  
CTBC Financial Holding Co. Ltd.     81,897,772       61,397,296  
Delta Electronics Inc.(b)     8,672,000       40,095,774  
E.Sun Financial Holding Co. Ltd.     46,430,170       44,544,872  
Eclat Textile Co. Ltd.(b)     888,427       10,562,715  
Eva Airways Corp.     10,167,109       4,046,093  
Evergreen Marine Corp. Taiwan Ltd.(a)     10,840,810       4,135,186  
Far Eastern New Century Corp.     14,260,038       13,304,251  
Far EasTone Telecommunications Co. Ltd.     7,145,000       15,597,500  
Feng TAY Enterprise Co. Ltd.     1,501,281       8,478,312  
First Financial Holding Co. Ltd.     43,991,026       34,432,118  
Formosa Chemicals & Fibre Corp.     15,768,090       42,805,760  
Formosa Petrochemical Corp.(b)     5,565,000       15,824,122  
Formosa Plastics Corp.     20,030,280       60,197,674  
Formosa Taffeta Co. Ltd.     4,060,000       4,491,818  
Foxconn Technology Co. Ltd.     4,166,637       8,187,549  
Fubon Financial Holding Co. Ltd.     29,165,969       42,815,348  
Giant Manufacturing Co. Ltd.     1,399,203       7,601,476  
Globalwafers Co. Ltd.(b)     985,000       13,321,141  
Highwealth Construction Corp.(b)     3,908,170       5,788,782  
Hiwin Technologies Corp.     1,060,649       10,561,128  
Hon Hai Precision Industry Co. Ltd.     55,574,873       147,382,298  
Hotai Motor Co. Ltd.     1,386,000       28,700,012  
Hua Nan Financial Holdings Co. Ltd.     35,787,615       25,470,140  
Innolux Corp.(b)     37,185,002       9,701,663  
Inventec Corp.     10,910,281       8,269,322  
Largan Precision Co. Ltd.     457,000       66,860,747  
Lite-On Technology Corp.     9,390,246       13,598,715  
MediaTek Inc.     6,713,338       79,816,433  
Mega Financial Holding Co. Ltd.     48,153,162       51,445,856  
Micro-Star International Co. Ltd.     3,016,000       9,044,165  
Nan Ya Plastics Corp.     23,271,160       52,337,918  
Nanya Technology Corp.     5,393,000       13,767,694  
Nien Made Enterprise Co. Ltd.     748,000       6,027,576  
Novatek Microelectronics Corp.     2,546,000       16,438,283  
Pegatron Corp.     8,653,414       17,918,693  
Phison Electronics Corp.     680,535       7,495,448  
Pou Chen Corp.     10,032,220       11,298,030  
Security   Shares     Value  
                 
Taiwan (continued)                
Powertech Technology Inc.     3,204,300     $ 10,794,055  
President Chain Store Corp.     2,595,000       25,410,509  
Quanta Computer Inc.(b)     11,750,000       24,059,182  
Realtek Semiconductor Corp.(b)     2,141,637       15,914,012  
Ruentex Development Co. Ltd.     2,662,458       3,609,502  
Ruentex Industries Ltd.(b)     1,640,958       3,663,494  
Shanghai Commercial & Savings Bank Ltd. (The)     14,989,318       24,900,104  
Shin Kong Financial Holding Co. Ltd.     48,167,436       14,650,905  
SinoPac Financial Holdings Co. Ltd.     48,430,626       20,792,884  
Standard Foods Corp.     2,091,615       4,690,324  
Synnex Technology International Corp.     5,924,834       7,357,247  
Taishin Financial Holding Co. Ltd.     42,090,482       19,738,927  
Taiwan Business Bank(b)     20,632,493       8,176,817  
Taiwan Cement Corp.     21,753,898       30,353,942  
Taiwan Cooperative Financial Holding Co. Ltd.     40,154,869       27,782,642  
Taiwan High Speed Rail Corp.     8,875,000       10,112,040  
Taiwan Mobile Co. Ltd.     7,248,600       25,135,917  
Taiwan Semiconductor Manufacturing Co. Ltd.     110,179,000       1,149,839,462  
Tatung Co. Ltd.(a)(b)     8,462,000       5,882,696  
Uni-President Enterprises Corp.     21,608,839       52,238,875  
United Microelectronics Corp.(b)     48,915,000       24,716,376  
Vanguard International Semiconductor Corp.(b)     3,870,000       9,483,446  
Walsin Technology Corp.(b)     1,416,000       9,960,799  
Win Semiconductors Corp.(b)     1,501,000       13,557,803  
Winbond Electronics Corp.     12,959,000       6,847,669  
Wistron Corp.     12,450,940       11,122,969  
Wiwynn Corp.     357,000       8,536,072  
WPG Holdings Ltd.     7,158,449       9,172,801  
Yageo Corp.(b)     1,169,861       15,840,519  
Yuanta Financial Holding Co. Ltd.     44,128,635       27,981,631  
Zhen Ding Technology Holding Ltd.     2,397,075       9,143,551  
              3,040,696,392  
Thailand — 2.2%                
Advanced Info Service PCL, NVDR(b)     5,286,000       33,503,407  
Airports of Thailand PCL, NVDR     18,846,400       35,686,021  
B Grimm Power PCL, NVDR     3,238,100       4,643,449  
Bangkok Bank PCL, Foreign     2,109,900       8,792,643  
Bangkok Dusit Medical Services PCL, NVDR     42,138,300       29,645,706  
Bangkok Expressway & Metro PCL, NVDR(b)     34,630,300       10,151,490  
Banpu PCL, NVDR     20,253,700       4,557,163  
Berli Jucker PCL, NVDR(b)     5,505,800       6,368,617  
BTS Group Holdings PCL, NVDR     30,519,700       10,542,378  
Bumrungrad Hospital PCL, NVDR     1,993,100       8,116,411  
Central Pattana PCL, NVDR     10,332,500       17,354,540  
Central Retail Corp. PCL, NVDR(a)     5,771,634       5,761,574  
Charoen Pokphand Foods PCL, NVDR     17,541,200       14,870,135  
CP ALL PCL, NVDR     25,938,500       54,047,104  
Electricity Generating PCL, NVDR     1,293,200       11,188,198  
Energy Absolute PCL, NVDR     7,608,500       9,403,628  
Global Power Synergy PCL, NVDR     3,041,100       6,071,599  
Gulf Energy Development PCL, NVDR     2,365,300       12,405,551  
Home Product Center PCL, NVDR     26,708,914       10,834,229  
Indorama Ventures PCL, NVDR(b)     7,689,980       6,336,222  
Intouch Holdings PCL, NVDR     10,227,800       17,502,811  
IRPC PCL, NVDR(b)     52,198,500       3,639,255  
Kasikornbank PCL     5,287,900       20,025,481  
Kasikornbank PCL, NVDR     2,611,100       9,846,962  
Krung Thai Bank PCL, NVDR     15,844,300       7,029,637  
Land & Houses PCL, NVDR     37,324,500       9,935,852  
Minor International PCL, NVDR     12,539,320       10,927,945  


20 2 0 2 0    I S h a r e s    S e m i - A n n u a l    R e p o r t    t o    S h a r e h o l d e r s

 

 

 

 

 

 

Consolidated Schedule of Investments (unaudited) (continued) iShares® MSCI Emerging Markets ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
                 
Thailand (continued)                
Muangthai Capital PCL, NVDR     2,837,800     $ 5,171,082  
Osotspa PCL, NVDR     2,901,800       3,839,333  
PTT Exploration & Production PCL, NVDR     6,183,939       20,773,175  
PTT Global Chemical PCL, NVDR     10,186,730       13,316,514  
PTT PCL, NVDR     50,865,400       62,866,443  
Ratch Group PCL, NVDR     3,313,700       6,195,795  
Siam Cement PCL (The), NVDR     3,436,900       33,764,506  
Siam Commercial Bank PCL(The), NVDR     3,739,500       10,339,768  
Srisawad Corp PCL, NVDR     2,931,400       6,247,398  
Thai Oil PCL, NVDR     5,167,000       7,082,008  
Thai Union Group PCL, NVDR     15,302,800       7,419,833  
TMB Bank PCL, NVDR(b)     93,738,863       3,238,008  
Total Access Communication PCL, NVDR(b)     3,172,300       3,669,433  
True Corp. PCL, NVDR(b)     53,307,801       5,608,680  
              568,719,984  
Turkey — 0.5%                
Akbank T.A.S.(a)     12,571,098       13,598,532  
Anadolu Efes Biracilik Ve Malt Sanayii AS     956,937       3,359,635  
Arcelik AS(a)     877,051       2,607,610  
Aselsan Elektronik Sanayi Ve Ticaret AS     1,504,741       6,621,655  
BIM Birlesik Magazalar AS     1,918,359       14,747,044  
Enka Insaat ve Sanayi AS     2       2  
Eregli Demir ve Celik Fabrikalari TAS     6,339,400       8,369,012  
Ford Otomotiv Sanayi AS     307,862       3,842,579  
Haci Omer Sabanci Holding AS     4,066,083       5,537,043  
KOC Holding AS     3,328,909       9,162,257  
TAV Havalimanlari Holding AS     811,949       2,645,323  
Tupras Turkiye Petrol Rafinerileri AS     555,975       9,012,324  
Turk Hava Yollari AO(a)(b)     2,363,617       4,444,133  
Turkcell Iletisim Hizmetleri AS     4,926,372       10,910,267  
Turkiye Garanti Bankasi AS(a)     10,175,721       15,468,952  
Turkiye Is Bankasi AS, Class C(a)     6,916,809       6,319,955  
              116,646,323  
United Arab Emirates — 0.6%                
Abu Dhabi Commercial Bank PJSC     12,524,837       24,313,781  
Aldar Properties PJSC     17,055,190       9,844,266  
DP World PLC     749,508       12,179,505  
Dubai Islamic Bank PJSC     7,926,848       11,654,273  
Emaar Malls PJSC     10,928,438       4,790,434  
Emaar Properties PJSC     15,909,786       15,160,841  
Emirates Telecommunications Group Co. PJSC     7,868,520       33,848,625  
First Abu Dhabi Bank PJSC     12,195,078       47,546,494  
              159,338,219  
Total Common Stocks — 96.8%                
(Cost: $22,257,637,287)             24,478,805,075  
                 
Preferred Stocks                
                 
Brazil — 2.1%                
Banco Bradesco SA, Preference Shares, NVS     17,796,915       120,430,400  
Braskem SA, Class A, Preference Shares, NVS     853,800       5,088,755  
Centrais Eletricas Brasileiras SA, Class B, Preference Shares, NVS     1,129,737       8,976,998  
Cia. Brasileira de Distribuicao, Preference  Shares, NVS     715,086       11,429,267  
Cia. Energetica de Minas Gerais, Preference Shares, NVS     4,125,610       12,765,510  
Gerdau SA, Preference Shares, NVS     4,850,485       18,201,481  
Security   Shares     Value  
                 
Brazil (continued)                
Itau Unibanco Holding SA, Preference Shares, NVS     21,519,379     $ 152,631,549  
Itausa-Investimentos Itau SA, Preference Shares, NVS     19,743,992       52,558,453  
Lojas Americanas SA, Preference Shares, NVS     3,403,429       20,066,098  
Petroleo Brasileiro SA, Preference Shares, NVS     18,752,427       105,324,327  
Telefonica Brasil SA, Preference Shares, NVS     1,996,867       23,626,115  
              531,098,953  
Chile — 0.1%                
Embotelladora Andina SA, Class B, Preference Shares     1,447,232       3,484,309  
Sociedad Quimica y Minera de Chile SA, Series B, Preference Shares     518,896       13,571,895  
              17,056,204  
Colombia — 0.1%                
Bancolombia SA, Preference Shares, NVS     2,027,985       24,058,688  
Grupo Aval Acciones y Valores SA, Preference Shares, NVS     16,504,430       6,746,833  
              30,805,521  
Russia — 0.1%                
Surgutneftegas PJSC, Preference Shares, NVS     31,219,300       15,224,055  
Transneft PJSC, Preference Shares, NVS     2,232       5,043,589  
              20,267,644  
South Korea — 0.6%                
Amorepacific Corp., Preference Shares, NVS     44,477       2,688,029  
Hyundai Motor Co.                
Preference Shares, NVS     110,331       6,023,010  
Series 2, Preference Shares, NVS     174,085       10,736,078  
LG Chem Ltd., Preference Shares, NVS     36,707       5,651,880  
LG Household & Health Care Ltd., Preference Shares, NVS     9,994       6,031,784  
Samsung Electronics Co. Ltd., Preference Shares, NVS     3,580,662       134,293,252  
              165,424,033  
Total Preferred Stocks — 3.0%                
(Cost: $515,682,179)             764,652,355  
                 
Rights                
                 
China — 0.0%                
                 
Legend Holdings Corp. Class H,
(Expires 04/16/20)(a)
    188,246       0 (f)
South Korea — 0.0%                
HDC Hyundai Development Co.,
(Expires 06/03/20)(a)
    64,888       0 (f)
Total Rights — 0.0%                
(Cost: $0)             0 (f)
                 
Warrants                
                 
Thailand — 0.0%                
BTS Group Holdings PCL (Expires 02/16/21)(a)     3,207,030       87,405  
Total Warrants — 0.0%                
(Cost: $0)             87,405  


S c h e d u l e    o f    I n v e s t m e n t s 21

 

 

 

 

Consolidated Schedule of Investments (unaudited) (continued) iShares® MSCI Emerging Markets ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
                 
Short-Term Investments                
Money Market Funds — 2.5%                
BlackRock Cash Funds: Institutional, SL Agency Shares, 1.74%(g)(h)(i)     629,117,607     $ 629,557,990  
Total Short-Term Investments — 2.5%                
(Cost: $629,228,157)             629,557,990  
Total Investments in Securities — 102.3%                
(Cost: $23,402,547,623)             25,873,102,825  
Other Assets, Less Liabilities — (2.3)%             (581,279,695 )
Net Assets — 100.0%           $ 25,291,823,130  

 

(a) Non-income producing security.
(b) All or a portion of this 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) This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933.
(f) Rounds to less than $1.
(g) Affiliate of the Fund.
(h) Annualized 7-day yield as of period-end.
(i) All or a portion of this security was purchased with cash collateral received from loaned securities.


Affiliates

 

Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940Act, were as follows:

                                                         
Affiliated Issuer   Shares
Held at
08/31/19
    Net Activity     Shares
Held at
02/29/20
    Value at
02/29/20
    Income     Net Realized
Gain (Loss)
(a)    Change in
Unrealized
Appreciation
(Depreciation)
 
BlackRock Cash Funds: Institutional, SL Agency Shares     639,656,107       (10,538,500 )     629,117,607     $ 629,557,990     $ 7,078,272 (b)   $ 86,235     $ 36,232  
BlackRock Cash Funds: Treasury, SL Agency Shares     50,332,000       (50,332,000 )                 375,543              
                            $ 629,557,990     $ 7,453,815     $ 86,235     $ 36,232  

 

(a) Includes realized capital gain distributions from an affiliated fund, if any.
(b) Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

 

Futures Contracts

 

                      Value/  
                Notional     Unrealized  
    Number of     Expiration     Amount     Appreciation  
Description     Contracts       Date       (000)     (Depreciation)  
Long Contracts                                
MSCI Emerging Markets E-Mini     1,133       03/20/20     $ 57,149     $ (4,325,050 )

 

Derivative Financial Instruments Categorized by Risk Exposure

 

As of February 29, 2020, the fair values of derivative financial instruments located in the Consolidated Statements of Assets and Liabilities were as follows:

 

    Equity  
    Contracts  
Liabilities — Derivative Financial Instruments        
Futures contracts        
Unrealized depreciation on futures contracts(a)   $ 4,325,050  

 

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

 

22 2 0 2 0    I S h a r e s    S e m i - A n n u a l    R e p o r t    t o    S h a r e h o l d e r s

 

 

 

 

Consolidated Schedule of Investments (unaudited) (continued) iShares® MSCI Emerging Markets ETF
February 29, 2020  

 

For the six months ended February 29, 2020, the effect of derivative financial instruments in the Consolidated Statements of Operations was as follows:

 

    Equity  
    Contracts  
Net Realized Gain (Loss) from:        
Futures contracts   $ 561,248  
Net Change in Unrealized Appreciation (Depreciation) on:        
Futures contracts   $ (2,176,681 )

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:      
Average notional value of contracts — long   $ 48,259,507  

 

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

 

Fair Value Measurements

 

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

 

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund’s investments into major categories is disclosed in the Consolidated Schedule of Investments above.

 

    Level 1     Level 2     Level 3     Total  
Investments                        
Assets                        
Common Stocks   $ 24,478,771,623     $ 19,947     $ 13,505     $ 24,478,805,075  
Preferred Stocks     764,652,355                   764,652,355  
Rights           0 (a)           0 (a)
Warrants     87,405                   87,405  
Money Market Funds     629,557,990                   629,557,990  
    $ 25,873,069,373     $ 19,947     $ 13,505     $ 25,873,102,825  
Derivative financial instruments(b)                                
Liabilities                                
Futures Contracts   $ (4,325,050 )   $     $     $ (4,325,050 )

 

(a) Rounds to less than $1.

(b) Shown at the unrealized appreciation (depreciation) on the contracts.

 

See notes to financial statements.

 

S c h e d u l e    o f    I n v e s t m e n t s 23

 

 

 

 

Statements of Assets and Liabilities (unaudited)

February 29, 2020

 

      iShares
Currency
Hedged
MSCI
Emerging
Markets ETF
      iShares
MSCI Emerging
Markets ETF
(Consolidated)
 
                 
ASSETS                
Investments in securities, at value (including securities on loan)(a):                
Unaffiliated(b)   $     $ 25,243,544,835  
Affiliated(c)     236,957,594       629,557,990  
Cash     345       42,267,038  
Foreign currency, at value(d)     97       35,815,638  
Cash pledged:                
Futures contracts           2,976,000  
Receivables:                
Investments sold           422,291,552  
Securities lending income — Affiliated     1,359       917,182  
Capital shares sold     47,612        
Dividends     826       61,014,863  
Tax reclaims           373,468  
Unrealized appreciation on:                
Forward foreign currency exchange contracts     3,078,768        
Other assets           1,929,971  
Total assets     240,086,601       26,440,688,537  
                 
LIABILITIES                
Cash received:                
Collateral — forward foreign currency exchange contracts     1,900,000        
Collateral on securities loaned, at value     62,250,000       628,506,851  
Deferred foreign capital gain tax           15,436,071  
Payables:                
Investments purchased     1,750,118       139,045,583  
Variation margin on futures contracts           203,975  
Bank borrowings           3,424,469  
Capital shares redeemed           346,496,332  
Investment advisory fees           15,619,041  
Foreign taxes           133,085  
Unrealized depreciation on:                
Forward foreign currency exchange contracts     1,102,292        
Total liabilities     67,002,410       1,148,865,407  
                 
NET ASSETS   $ 173,084,191     $ 25,291,823,130  
                 
NET ASSETS CONSIST OF:                
Paid-in capital   $ 187,113,027     $ 34,464,490,962  
Accumulated loss     (14,028,836 )     (9,172,667,832 )
NET ASSETS   $ 173,084,191     $ 25,291,823,130  
                 
Shares outstanding     7,050,000       625,950,000  
Net asset value   $ 24.55     $ 40.41  
Shares authorized     250 million       2 billion  
Par value   $ 0.001     $ 0.001  
                 
(a)    Securities loaned, at value   $ 60,780,000     $ 592,397,160  
(b)    Investments, at cost — Unaffiliated   $     $ 22,773,319,466  
(c)    Investments, at cost — Affiliated   $ 247,928,763     $ 629,228,157  
(d)    Foreign currency, at cost   $ 97     $ 35,911,831  

 

See notes to financial statements.

 

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Statements of Operations (unaudited)

Six Months Ended February 29, 2020

 

      iShares
Currency
Hedged
MSCI
Emerging
Markets ETF
      iShares
MSCI
Emerging
Markets ETF
(Consolidated)
 
                 
INVESTMENT INCOME                
Dividends — Unaffiliated   $     $ 245,506,455  
Dividends — Affiliated     3,924,624       375,543  
Non-cash dividends — Unaffiliated           173,588,583  
Interest — Unaffiliated           24,569  
Securities lending income — Affiliated — net(a)     30,326       7,078,272  
Other income — Unaffiliated           1,966,406  
Foreign taxes withheld           (27,578,929 )
Other foreign taxes           (24,392 )
Total investment income     3,954,950       400,936,507  
                 
EXPENSES                
Investment advisory fees     715,177       94,637,297  
Commitment fees           75,467  
Mauritius income taxes           776,700  
Interest expense           48,670  
Total expenses     715,177       95,538,134  
                 
Less:                
Investment advisory fees waived     (715,177 )      
Total expenses after fees waived           95,538,134  
Net investment income     3,954,950       305,398,373  
                 
REALIZED AND UNREALIZED GAIN (LOSS)                
Net realized gain (loss) from:                
Investments — Unaffiliated(b)           (393,591,673 )
Investments — Affiliated     (480,152 )     86,235  
In-kind redemptions — Unaffiliated           340,558,899  
In-kind redemptions — Affiliated     2,521,458        
Futures contracts           561,248  
Forward foreign currency exchange contracts     1,364,654        
Foreign currency transactions     (55,213 )     (3,141,019 )
Net realized gain (loss)     3,350,747       (55,526,310 )
Net change in unrealized appreciation (depreciation) on:                
Investments — Unaffiliated(c)           296,654,438  
Investments — Affiliated     489,620       36,232  
Futures contracts           (2,176,681 )
Forward foreign currency exchange contracts     (1,902,607 )      
Foreign currency translations           (2,606,156 )
Net change in unrealized appreciation (depreciation)     (1,412,987 )     291,907,833  
Net realized and unrealized gain     1,937,760       236,381,523  
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS   $ 5,892,710     $ 541,779,896  
                 
(a)    Net of securities lending income tax paid of   $     $ 257,127  
(b)    Net of foreign capital gain tax of   $     $ 5,325  
(c)    Net of deferred foreign capital gain tax of   $     $ (6,808,184 )

 

See notes to financial statements.

 

F i n a n c i a l   S t a t e m e n t s 25

 

 

 

 

Statements of Changes in Net Assets

 

    iShares
Currency Hedged MSCI Emerging Markets
ETF
    iShares
MSCI Emerging Markets ETF
(Consolidated)
 
    Six Months Ended
02/29/20
(unaudited)
    Year Ended
08/31/19
    Six Months Ended
02/29/20
(unaudited)
    Year Ended
08/31/19
 
                                 
INCREASE (DECREASE) IN NET ASSETS                                
                                 
OPERATIONS                                
Net investment income   $ 3,954,950     $ 5,827,092     $ 305,398,373     $ 676,194,320  
Net realized gain (loss)     3,350,747       9,528,491       (55,526,310 )     230,083,592  
Net change in unrealized appreciation (depreciation)     (1,412,987 )     (26,344,690 )     291,907,833       (2,464,390,731 )
Net increase (decrease) in net assets resulting from operations     5,892,710       (10,989,107 )     541,779,896       (1,558,112,819 )
                                 
DISTRIBUTIONS TO SHAREHOLDERS(a)                                
Decrease in net assets resulting from distributions to shareholders     (3,986,571 )     (5,899,803 )     (598,661,777 )     (665,424,186 )
                                 
CAPITAL SHARE TRANSACTIONS                                
Net increase (decrease) in net assets derived from capital share transactions     (9,197,491 )     (147,063,312 )     717,130,420       (4,293,900,423 )
                                 
NET ASSETS                                
Total increase (decrease) in net assets     (7,291,352 )     (163,952,222 )     660,248,539       (6,517,437,428 )
Beginning of period     180,375,543       344,327,765       24,631,574,591       31,149,012,019  
End of period   $ 173,084,191     $ 180,375,543     $ 25,291,823,130     $ 24,631,574,591  

 

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

 

See notes to financial statements.

 

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Financial Highlights

(For a share outstanding throughout each period)

 

    iShares Currency Hedged MSCI Emerging Markets ETF  
    Six Months
Ended
02/29/20
(unaudited)
    Year Ended
08/31/19
    Year Ended
08/31/18
    Year Ended
08/31/17
    Year Ended
08/31/16
    Period From
09/23/14
to 08/31/15
(a)
                                                 
Net asset value, beginning of period   $ 24.38     $ 25.70     $ 25.57     $ 21.72     $ 21.40     $ 24.44  
Net investment income(b)     0.55       0.55       0.60       0.36       0.50       0.41  
Net realized and unrealized gain (loss)(c)     0.19       (1.27 )     0.12       3.83       1.08       (2.80 )
Net increase (decrease) from investment operations     0.74       (0.72 )     0.72       4.19       1.58       (2.39 )
Distributions(d)                                                
From net investment income     (0.57 )     (0.60 )     (0.59 )     (0.34 )     (0.48 )     (0.65 )
From net realized gain                —        —       (0.78 )      —  
Total distributions     (0.57 )     (0.60 )     (0.59 )     (0.34 )     (1.26 )     (0.65 )
Net asset value, end of period   $ 24.55     $ 24.38     $ 25.70     $ 25.57     $ 21.72     $ 21.40  
                                                 
Total Return                                                
Based on net asset value     2.85 %(e)     (2.72 )%     2.77 %     19.55 %     7.84 %     (10.01 )%(e)
                                                 
Ratios to Average Net Assets                                                
Total expenses(f)     0.78 %(g)     0.78 %     0.78 %     0.78 %     0.78 %     0.78 %(g)
Total expenses after fees waived(f)     0.00 %(g)     0.00 %     0.00 %     0.00 %     0.00 %     0.02 %(g)
Net investment income     4.31 %(g)     2.22 %     2.25 %     1.56 %     2.42 %     1.82 %(g)
                                                 
Supplemental Data                                                
Net assets, end of period (000)   $ 173,084     $ 180,376     $ 344,328     $ 393,757     $ 180,254     $ 211,865  
Portfolio turnover rate(h)(i)     5 %(e)     7 %     7 %     4 %     11 %     7 %(e)

 

(a) Commencement of operations.
(b) Based on average shares outstanding.
(c) The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.
(d) Distributions for annual periods determined in accordance with U.S. federal income tax regulations.
(e) Not annualized.
(f) The Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying fund in which the Fund is invested. This ratio does not include these indirect fees and expenses.
(g) Annualized.
(h) Portfolio turnover rate excludes in-kind transactions.
(i) Portfolio turnover rate excludes the portfolio activity of the underlying fund in which the Fund is invested. See the underlying fund’s financial highlights for its respective portfolio turnover rates.

 

See notes to financial statements.

 

F i n a n c i a l   H i g h l i g h t s 27

 

 

 

 

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    iShares MSCI Emerging Markets ETF
(Consolidated)
 
    Six Months Ended
02/29/20
(unaudited)
    Year Ended
08/31/19
    Year Ended
08/31/18
    Year Ended
08/31/17
    Year Ended
08/31/16
    Year Ended
08/31/15
 
                                                 
Net asset value, beginning of period   $ 40.22     $ 43.24     $ 44.76     $ 36.74     $ 33.79     $ 45.11  
Net investment income(a)     0.48       0.90       0.83 (b)     0.75       0.72       0.73  
Net realized and unrealized gain (loss)(c)     0.64       (3.02 )     (1.36 )     7.86       3.00       (11.21 )
Net increase (decrease) from investment operations     1.12       (2.12 )     (0.53 )     8.61       3.72       (10.48 )
Distributions(d)                                                
From net investment income     (0.93 )     (0.90 )     (0.99 )     (0.59 )     (0.77 )     (0.84 )
Total distributions     (0.93 )     (0.90 )     (0.99 )     (0.59 )     (0.77 )     (0.84 )
Net asset value, end of period   $ 40.41     $ 40.22     $ 43.24     $ 44.76     $ 36.74     $ 33.79  
                                                 
Total Return                                                
Based on net asset value     2.61 %(e)     (4.87 )%     (1.28 )%(b)     23.80 %     11.28 %     (23.46 )%
                                                 
Ratios to Average Net Assets                                                
Total expenses     0.70 %(f)     0.68 %     0.67 %     0.69 %     0.72 %     0.69 %
Total expenses after fees waived     0.70 %(f)     0.68 %     0.67 %     0.69 %     0.72 %     0.69 %
Total expenses excluding professional fees for foreign withholding tax claims     N/A       0.68 %     0.67 %     0.69 %     N/A       N/A  
Net investment income     2.22 %(f)     2.16 %     1.78 %(b)     1.92 %     2.15 %     1.79 %
                                                 
Supplemental Data                                                
Net assets, end of period (000)   $ 25,291,823     $ 24,631,575     $ 31,149,012     $ 35,891,890     $ 30,866,469     $ 21,000,865  
Portfolio turnover rate(g)     9 %(e)     15 %     16 %     9 %     23 %     10 %

 

(a) Based on average shares outstanding.
(b) Reflects the one-time, positive effect of foreign withholding tax claims, net of the associated professional fees, which resulted in the following increases for the year ended August 31, 2018:
Net investment income per share by $0.02.
Total return by 0.07%.
Ratio of net investment income to average net assets by 0.04%.
(c) The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.
(d) Distributions for annual periods determined in accordance with U.S. federal income tax regulations.
(e) Not annualized.
(f) Annualized.
(g) Portfolio turnover rate excludes in-kind transactions.

 

See notes to financial statements.

 

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Notes to Financial Statements (unaudited)

 

1.       ORGANIZATION

 

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

 

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

 

      Diversification  
iShares ETF     Classification  
Currency Hedged MSCI Emerging Markets     Diversified  
MSCI Emerging Markets     Diversified  

 

Currently the iShares Currency Hedged MSCI Emerging Markets ETF seeks to achieve its investment objective by investing a substantial portion of its assets in the iShares MSCI Emerging Markets ETF (an “underlying fund”). The financial statements and schedule of investments for the underlying fund are included in this report and should be read in conjunction with the financial statements of the iShares Currency Hedged MSCI Emerging Markets ETF.

 

Basis of Consolidation: The accompanying consolidated financial statements for the iShares MSCI Emerging Markets ETF includes the accounts of its subsidiary in the Republic of Mauritius, which is a wholly-owned subsidiary (the “Subsidiary”) of the Fund that invests in Indian securities. Through this investment structure, the Fund expects to obtain certain benefits under a current tax treaty between Mauritius and India. Intercompany accounts and transactions, if any, have been eliminated.

 

2.       SIGNIFICANT ACCOUNTING POLICIES

 

The following significant accounting policies are consistently followed by each Fund in the preparation of its financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies.

 

Investment Transactions and Income Recognition: Investment transactions are accounted for on trade date. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recognized on the ex-dividend date, net of any foreign taxes withheld at source. Any taxes withheld that are reclaimable from foreign tax authorities are reflected in tax reclaims receivable. Distributions received by the Funds may include a return of capital that is estimated by management. Such amounts are recorded as a reduction of the cost of investments or reclassified to capital gains. Upon notification from issuers, some of the dividend income received from a real estate investment trust may be re-designated as a return of capital or capital gain. Non-cash dividends, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Interest income, including amortization and accretion of premiums and discounts on debt securities, and payment- in-kind interest income, if any, are recognized daily on the accrual basis.

 

Foreign Currency Translation: The accounting records of the Funds are maintained in U.S. dollars. Foreign currencies, as well as investment securities and other assets and liabilities denominated in non-U.S. currencies are translated to U.S. dollars using prevailing market rates as quoted by one or more data service providers. Purchases and sales of investments, income receipts and expense payments are translated into U.S. dollars on the respective dates of such transactions.

 

Each Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of investments. Such fluctuations are reflected by the Funds as a component of net realized and unrealized gain (loss) from investments for financial reporting purposes. Each Fund reports realized currency gain (loss) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for U.S. federal income tax purposes. However, the currency hedged fund has elected to treat realized gains (losses) from certain foreign currency contracts as capital gain (loss) for U.S. federal income tax purposes.

 

Foreign Taxes: The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which each Fund invests. These foreign taxes, if any, are paid by each Fund and are reflected in its statement of operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of February 29, 2020, if any, are disclosed in the statement of assets and liabilities.

 

The iShares MSCI Emerging Markets ETF conducts its investment activities in India through its Subsidiary and expects to obtain benefits under the Double Tax Avoidance Agreement (“DTAA”) between India and Mauritius. In order to be eligible to claim benefits under the DTAA, the Subsidiary must have commercial substance, on an annual basis, to satisfy certain tests and conditions, including the establishment and maintenance of valid tax residence in Mauritius and related requirements. The Fund has obtained a current tax residence certificate issued by the Mauritian Revenue Authorities and the same covers the period of any exists.

 

Based upon current interpretation and practice of the current tax laws in India and Mauritius and the DTAA, the Subsidiary is subject to tax in Mauritius on its net income at the rate of 15%. However, the Subsidiary is entitled to a tax credit equivalent to the higher of the actual foreign tax incurred or 80% of the Mauritius tax on its foreign source income, thus reducing its maximum effective tax rate to 3% up to June 30, 2021. After June 30, 2021, under the new tax regime and subject to meeting the necessary substance requirements as required under the Financial Services Act 2007 (as amended by the Finance Act 2018) and such guidelines issued by the FSC, the Subsidiary

 

N o t e s   t o   F i n a n c i a l    S t a t e m e n t s 29

 

 

 

 

Notes to Financial Statements (unaudited) (continued)

 

is entitled to either (a) a foreign tax credit equivalent to the actual foreign tax suffered on its foreign income against the Subsidiary’s tax liability computed at 15% on such income, or (b) a partial exemption of 80% of some of the income derived, including interest income or foreign source dividends. Taxes on income, if any, are paid by the Subsidiary and are disclosed in its consolidated statement of operations. Any dividends paid by the Subsidiary to its Fund are not subject to tax in Mauritius. The Subsidiary is currently exempt from tax in Mauritius on any gains from the sale of securities.

 

The DTAA provides that capital gains will be taxable in India with respect to the sale of shares acquired on or after April 1, 2017. Capital gains arising from shares acquired before April 1, 2017, regardless of when they are sold, will continue to be exempt from taxation under the amended DTAA, assuming requirements for eligibility under the DTAA are satisfied.

 

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

 

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

 

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

 

3.       INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

 

Investment Valuation Policies: Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date should the reporting period end on a day that the Fund’s listing exchange is not open. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. A fund determines the fair value of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Directors of the Company (the “Board”). The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.

 

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

Equity investments traded on a recognized securities exchange are valued at that day’s last traded price or official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price.
Exchange-traded funds and closed-end funds traded on a recognized securities exchange are valued at that day’s last traded price or official closing price, as applicable, on the exchange where the fund is primarily traded. Funds traded on a recognized exchange for which there were no sales on that day may be valued at the last traded price.
Investments in open-end U.S. mutual funds (including money market funds) are valued at that day’s published net asset value (“NAV”).
Futures contract notional values are determined based on that day’s last reported settlement price on the exchange where the contract is traded.
Forward foreign currency exchange contracts are valued based on that day’s prevailing forward exchange rate for the underlying currencies. Interpolated values are derived when the settlement date of the contract is an interim date for which quotations are not available.

 

If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of an investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with policies approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee include market approach, income approach and the cost approach. Valuation techniques used under these approaches take into consideration inputs that include but are not limited to (i) attributes specific to the investment; (ii) the principal market for the investment; (iii) the customary participants in the principal market for the investment; (iv) data assumptions by market participants for the investment, if reasonably available; (v) quoted prices for similar investments in active markets; and (vi) other inputs, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or default rates.

 

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.

 

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

 

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

Level 1 – Unadjusted price quotations in active markets for identical assets or liabilities;

 

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Notes to Financial Statements (unaudited) (continued)

 

Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; and
Level 3 – Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, (including the Global Valuation Committee’s assumptions used in determining the fair value of financial instruments).

 

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgement exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The fair value hierarchy for each Fund’s investments is included in its schedule of investments. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

 

4.       SECURITIES AND OTHER INVESTMENTS

 

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

 

As of February 29, 2020, any securities on loan were collateralized by cash and/or U.S. government obligations. Cash collateral received was invested in money market funds managed by BlackRock FundAdvisors (“BFA”), the Funds’ investment adviser, or its affiliates and is disclosed in the schedules of investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan for each Fund, if any, are also disclosed in its schedule of investments. The market value of any securities on loan as of February 29, 2020 and the value of the related cash collateral are disclosed in the statements of assets and liabilities.

 

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

 

The following table is a summary of the securities lending agreements by counterparty which are subject to offset under an MSLA as of February 29, 2020:

 

iShares ETF and Counterparty   Market Value of
Securities on Loan
    Cash Collateral
Received
(a)   Non-Cash
Collateral
Received
    Net Amount  
Currency Hedged MSCI Emerging Markets                        
BofA Securities, Inc.   $ 60,780,000     $ 60,780,000     $     $  

 

N o t e s   t o   F i n a n c i a l    S t a t e m e n t s 31

 

 

 

 

Notes to Financial Statements (unaudited) (continued)

 

iShares ETF and Counterparty   Market Value of
Securities on Loan
    Cash Collateral
Received
(a)   Non-Cash Collateral
Received
    Net Amount  
MSCI Emerging Markets                        
Barclays Bank PLC   $ 3,689,813     $ 3,689,813     $     $  
Barclays Capital Inc.     1,856,570       1,856,570              
BNP Paribas Prime Brokerage International Ltd.     5,739,129       5,739,129              
BNP Paribas Securities Corp.     1,732,375       1,732,375              
BofA Securities, Inc.     10,851,662       10,851,662              
Citigroup Global Markets Inc.     107,403,892       107,403,892              
Citigroup Global Markets Ltd.     17,032,227       17,032,227              
Credit Suisse Securities (Europe) Ltd.     17,110,735       17,110,735              
Credit Suisse Securities (USA) LLC     48,634,596       48,634,596              
Deutsche Bank Securities Inc.     277,596       277,596              
Goldman Sachs & Co.     92,777,480       92,777,480              
Goldman Sachs International     7,408,811       7,408,811              
HSBC Bank PLC     514,956       514,956              
Jefferies LLC     260,879       260,879              
JPMorgan Securities LLC     52,908,178       52,908,178              
JPMorgan Securities PLC     39,408,030       39,408,030              
Macquarie Bank Limited     23,844,268       23,844,268              
Morgan Stanley & Co. International PLC     17,633,250       17,633,250              
Morgan Stanley & Co. LLC     109,912,317       109,912,317              
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending)     17,735,579       17,735,579              
Scotia Capital (USA) Inc.     57,684       57,684              
SG Americas Securities LLC     1,373,368       1,373,368              
State Street Bank & Trust Company     1,992,805       1,992,805              
TD Prime Services LLC     8,942,567       8,942,567              
UBS AG     101,599       101,599              
UBS Securities LLC     290,904       290,904              
Wells Fargo Securities LLC     2,905,890       2,898,540             (7,350 )(b)
    $ 592,397,160     $ 592,389,810     $     $ (7,350 )

 

(a) Collateral received in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by each Fund is disclosed in the Fund’s statement of assets and liabilities.
(b) 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 a counterparty.

 

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

 

5.       DERIVATIVE FINANCIAL INSTRUMENTS

 

Futures Contracts: Each Fund’s use of futures contracts is generally limited to cash equitization. This involves the use of available cash to invest in index futures contracts in order to gain exposure to the equity markets represented in or by the Fund’s underlying index and is intended to allow the Fund to better track its underlying index. Futures contracts are standardized, exchange-traded agreements to buy or sell a specific quantity of an underlying instrument at a set price on a future date. Depending on the terms of a contract, a futures contract is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date.

 

Upon entering into a futures contract, a fund is required to pledge to the executing broker which holds segregated from its own assets, an amount of cash, U.S. government securities or other high-quality debt and equity securities equal to the minimum initial margin requirements of the exchange on which the contract is traded. Securities deposited as initial margin, if any, are designated in the schedule of investments and cash deposited, if any, is shown as cash pledged for futures contracts in the statement of assets and liabilities.

 

Pursuant to the contract, a fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation or depreciation and, if any, shown as variation margin receivable or payable on futures contracts in the statement of assets and liabilities. When the contract is closed, a realized gain or loss is recorded in the statement of operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. Losses may arise if the notional value of a futures contract decreases due to an unfavorable change in the market rates or values of the underlying instrument during the term of the contract or if the counterparty does not perform under the contract. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and the assets underlying such contracts.

 

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Notes to Financial Statements (unaudited) (continued)

 

Forward Foreign Currency Exchange Contracts: The currency-hedged fund uses forward foreign currency exchange contracts to hedge the currency exposure of non-U.S. dollar-denominated securities held in its portfolio or its underlying fund’s portfolio. A forward foreign currency exchange contract is an agreement between two parties to buy and sell a currency against another currency at an agreed upon price and quantity. The contracts are traded over-the-counter (“OTC”) and not on an organized exchange.

 

The contract is marked-to-market daily and the change in market value is recorded as unrealized appreciation or depreciation in the statement of assets and liabilities. When the contract is closed, a realized gain or loss is recorded in the statement of operations equal to the difference between the value at the time it was opened and the value at the time it was closed. Non-deliverable forward foreign currency exchange contracts (“NDFs”) are settled with the counterparty in cash without the delivery of foreign currency. The use of forward foreign currency exchange contracts involves the risk that the value of a contract changes unfavorably due to movements in the value of the referenced foreign currencies. A fund’s risk of loss from counterparty credit risk on OTC derivatives is generally limited to the aggregate unrealized gain netted against any collateral held by the fund.

 

Master Netting Arrangements: In order to define its contractual rights and to secure rights that will help mitigate its counterparty risk, a fund may enter into an International Swaps and Derivatives Association, Inc. master agreement (“ISDA Master Agreement”) or similar agreement with its derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between a fund and a counterparty that governs certain OTC derivatives and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default including the bankruptcy or insolvency of the counterparty. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset in bankruptcy, insolvency, or other events.

 

The collateral requirements under an ISDA Master Agreement are typically calculated by netting the mark-to-market amount for each transaction under such agreement, and comparing that amount to the value of any collateral currently pledged by a fund and the counterparty. Except for NDFs, the forward foreign currency exchange contracts held by the Funds generally do not require collateral. Cash collateral pledged to the counterparty, if any, is presented as cash pledged as collateral for OTC derivatives on the statement of assets and liabilities. Cash received as collateral from the counterparty may be reinvested in money market funds, including those managed by the Funds’ investment adviser, or its affiliates. Such collateral, if any, is presented in the statement of assets and liabilities as affiliated investments at value and as a liability for cash received as collateral on OTC derivatives. To the extent amounts due to the Funds from the counterparty are not fully collateralized, contractually or otherwise, each Fund bears the risk of loss from counterparty non-performance. Each Fund attempts to mitigate counterparty risk by only entering into agreements with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties.

 

For financial reporting purposes, each Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements, if any, in the statement of assets and liabilities.

 

6.       INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

 

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

 

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

 

iShares ETF   Investment Advisory Fee  
Currency Hedged MSCI Emerging Markets     0.78 %

 

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

 

Aggregate Average Daily Net Assets   Investment Advisory Fee  
First $14 billion     0.75 %
Over $14 billion, up to and including $28 billion     0.68  
Over $28 billion, up to and including $42 billion     0.61  
Over $42 billion, up to and including $56 billion     0.54  
Over $56 billion, up to and including $70 billion     0.47  
Over $70 billion, up to and including $84 billion     0.41  
Over $84 billion     0.35  

 

Expense Waivers: A fund may incur its pro rata share of fees and expenses attributable to its investments in other investment companies (“acquired fund fees and expenses”). The total of the investment advisory fee and any other fund expenses are a fund’s total annual operating expenses.

 

For the iShares Currency Hedged MSCI Emerging Markets ETF, BFA has contractually agreed to waive a portion of its investment advisory fee for the Fund through December 31, 2020 so that the Fund’s total annual operating expenses after fee waiver is equal to the acquired fund fees and expenses attributable to the Fund’s investment in the iShares MSCI Emerging Markets ETF (“EEM”), after taking into account any fee waivers by EEM.

 

N o t e s   t o   F i n a n c i a l    S t a t e m e n t s 33

 

 

 

 

Notes to Financial Statements (unaudited) (continued)

 

The Subsidiary has entered into a separate contract with BFA under which BFA provides investment advisory services to the Subsidiary but does not receive separate compensation from the Subsidiary for providing it with such services. The Subsidiary has also entered into separate arrangements that provide for the provision of other services to the Subsidiary (including administrative, custody, transfer agency and other services), and BFA pays the costs and expenses related to the provision of those services.

 

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

 

Securities Lending: The U.S. Securities and Exchange Commission (the “SEC”) has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan in a money market fund managed by BFA, or its affiliates, however, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees each Fund bears to an annual rate of 0.04% (the “collateral investment fees”). Securities lending income is equal to the total of income earned from the reinvestment of cash collateral (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. Each Fund retains a portion of securities lending income and remits the remaining portion to BTC as compensation for its services as securities lending agent.

 

Pursuant to the current securities lending agreement, each Fund retains 82% of securities lending income (which excludes collateral investment fees) and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

 

In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across all 1940 Act iShares exchange-traded funds (the “iShares ETF Complex”) in that calendar year exceeds a specified threshold, each Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year 85% of securities lending income (which excludes collateral investment fees), and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

 

The share of securities lending income earned by each Fund is shown as securities lending income – affiliated – net in its statement of operations. For the six months ended February 29, 2020, the Funds paid BTC the following amounts for securities lending agent services:

 

    Fees Paid  
iShares ETF   to BTC  
Currency Hedged MSCI Emerging Markets   $ 10,205  
MSCI Emerging Markets     1,724,122  

 

Officers and Directors: Certain officers and/or directors of the Company are officers and/or directors of BlackRock or its affiliates.

 

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

 

For the six months ended February 29, 2020, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:

 

                Net Realized  
iShares ETF   Purchases     Sales     Gain (Loss)  
MSCI Emerging Markets   $ 21,439,972     $ 168,292,172     $(24,414,823 )

 

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

 

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

 

7.       PURCHASES AND SALES

 

For the six months ended February 29, 2020, purchases and sales of investments, excluding in-kind transactions and short-term investments, were as follows:

 

iShares ETF   Purchases     Sales  
Currency Hedged MSCI Emerging Markets   $ 9,355,240     $ 10,494,647  
MSCI Emerging Markets     3,119,740,479       2,521,536,029  

 

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Notes to Financial Statements (unaudited) (continued)

 

For the six months ended February 29, 2020, in-kind transactions were as follows:

 

    In-kind     In-kind  
iShares ETF   Purchases     Sales  
Currency Hedged MSCI Emerging Markets   $ 23,052,598     $ 32,268,172  
MSCI Emerging Markets     1,056,794,204       1,292,731,921  

 

8.       INCOME TAX INFORMATION

 

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

 

Management has analyzed tax laws and regulations and their application to the Funds as of February 29, 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.

 

As of August 31, 2019, the Funds had non-expiring capital loss carryforwards available to offset future realized capital gains as follows:

 

iShares ETF   Non-Expiring  
Currency Hedged MSCI Emerging Markets   $ 3,415,800  
MSCI Emerging Markets     10,625,028,180  

 

A fund may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” Such fund may elect to mark-to-market annually the shares of each passive foreign investment company and would be required to distribute to shareholders any such marked-to-market gains.

 

As of February 29, 2020, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:

 

iShares ETF   Tax Cost     Gross Unrealized
Appreciation
    Gross Unrealized
Depreciation
    Net Unrealized
Appreciation
(Depreciation)
 
Currency Hedged MSCI Emerging Markets   $ 249,337,500     $ 3,084,990     $ (13,488,420 )   $ (10,403,430 )
MSCI Emerging Markets     24,439,085,393       6,703,792,448       (5,274,100,066 )     1,429,692,382  

 

9.       LINE OF CREDIT

 

The iShares MSCI Emerging Markets ETFs, along with certain other iShares funds, are parties to a $300 million credit agreement with State Street Bank and Trust Company, which expires on October 21, 2020. The line of credit may be used for temporary or emergency purposes, including redemptions, settlement of trades and rebalancing of portfolio holdings. The credit agreement has the following terms: a commitment fee of 0.20% per annum on the unused portion of the credit agreement and interest at a rate equal to the higher of (a) the one-month LIBOR (not less than zero) plus 1.00% per annum or (b) the U.S. Federal Funds rate (not less than zero) plus 1.00% per annum on amounts borrowed. The commitment fee is allocated to each fund participating in the credit agreement based on each fund’s pro-rata share of the aggregate average daily value of assets invested in local securities of certain foreign markets.

 

For the six months ended February 29, 2020, the maximum amount borrowed, the average daily borrowing and the weighted average interest rate, if any, under the credit agreement were as follows:

 

    Maximum           Weighted  
    Amount     Average     Average  
iShares ETF   Borrowed     Borrowing     Interest Rates  
MSCI Emerging Markets   $ 87,556,215     $ 3,602,975       2.67 %

 

10.     PRINCIPAL RISKS

 

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

 

N o t e s   t o   F i n a n c i a l    S t a t e m e n t s 35

 

 

 

 

Notes to Financial Statements (unaudited) (continued)

 

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

 

Market Risk: Market risk arises mainly from uncertainty about future values of financial instruments influenced by price, currency and interest rate movements. It represents the potential loss a fund may suffer through holding market positions in the face of market movements. A fund is exposed to market risk by its investment in equity, fixed income and/or financial derivative instruments or by its investment in underlying funds. The fair value of securities held by a fund may decline due to general market conditions, economic trends or events that are not specifically related to the issuers of the securities including local, regional or global political, social or economic instability or to factors that affect a particular industry or group of industries. 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. The extent of a fund’s exposure to market risk is the market value of the investments held as shown in the fund’s schedule of investments.

 

Investing in the securities of non-U.S. issuers involves certain considerations and risks not typically associated with securities of U.S. issuers. Such risks include, but are not limited to: differences in accounting, auditing and financial reporting standards; more substantial governmental involvement in the economy; higher inflation rates, greater social, economic and political uncertainties; possible nationalization or expropriation of assets; less availability of public information about issuers; imposition of withholding or other taxes; higher transaction and custody costs and delays in settlement procedures; and lower level of regulation of the securities markets and issuers. Non-U.S. securities may be less liquid, more difficult to value, and have greater price volatility due to exchange rate fluctuations. These and other risks are heightened for investments in issuers from countries with less developed capital markets.

 

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 impact of the pandemic may be short term or may last for an extended period of time.

 

Credit Risk: Credit risk is the risk that an issuer or guarantor of debt instruments or the counterparty to a financial transaction, including derivatives contracts, repurchase agreements or loans of portfolio securities, is unable or unwilling to make timely interest and/or principal payments or to otherwise honor its obligations. BFA and its affiliates manage counterparty credit risk by entering into transactions only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose a fund to issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of a fund’s exposure to credit and counterparty risks with respect to those financial assets is approximated by their value recorded in its statement of assets and liabilities.

 

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

 

When a fund concentrates its investments in issuers located in a single country or a limited number of countries, it assumes the risk that economic, regulatory, political and social conditions in that country or those countries may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio.

 

Investments in Chinese securities, including certain Hong Kong-listed securities, involves risks specific to China. China may be subject to considerable degrees of economic, political and social instability and demonstrates significantly higher volatility from time to time in comparison to developed markets. Chinese markets generally continue to experience inefficiency, volatility and pricing anomalies resulting from governmental influence, a lack of publicly available information and/or political and social instability. Internal social unrest or confrontations with other neighboring countries may disrupt economic development in China and result in a greater risk of currency fluctuations, currency non-convertibility, interest rate fluctuations and higher rates of inflation. Incidents involving China’s or the region’s security may cause uncertainty in Chinese markets and may adversely affect the Chinese economy and a fund’s investments. Reduction in spending on Chinese products and services, institution of tariffs or other trade barriers, or a downturn in any of the economies of China’s key trading partners may have an adverse impact on the Chinese economy.

 

11.     CAPITAL SHARE TRANSACTIONS

 

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

 

Transactions in capital shares were as follows:

 

  Six Months Ended
02/29/20
    Year Ended
08/31/19
 
iShares ETF      Shares       Amount       Shares       Amount  
Currency Hedged MSCI Emerging Markets                                
Shares sold     900,000     $ 23,090,990       3,450,000     $ 84,956,699  
Shares redeemed     (1,250,000 )     (32,288,481 )     (9,450,000 )     (232,020,011 )
Net decrease     (350,000 )   $ (9,197,491 )     (6,000,000 )   $ (147,063,312 )

 

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Notes to Financial Statements (unaudited) (continued)

 

  Six Months Ended
02/29/20
    Year Ended
08/31/19
 
iShares ETF      Shares       Amount       Shares       Amount  
MSCI Emerging Markets                                
Shares sold     78,300,000     $ 3,486,925,611       90,000,000     $ 3,758,906,782  
Shares redeemed     (64,800,000 )     (2,769,795,191 )     (198,000,000 )     (8,052,807,205 )
Net increase(decrease)     13,500,000     $ 717,130,420       (108,000,000 )   $ (4,293,900,423 )

 

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

 

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

 

12.     LEGAL PROCEEDINGS

 

On June 16, 2016, investors in certain iShares funds (iShares Core S&P Small-Cap ETF, iShares Russell 1000 Growth ETF, iShares Core S&P 500 ETF, iShares Russell Mid-Cap Growth ETF, iShares Russell Mid-Cap ETF, iShares Russell Mid-Cap Value ETF, iShares Select Dividend ETF, iShares Morningstar Mid-Cap ETF, iShares Morningstar Large-Cap ETF, iShares U.S. Aerospace & Defense ETF and iShares Preferred and Income Securities ETF) filed a class action lawsuit against iShares Trust, BlackRock, Inc. and certain of its advisory affiliates, and certain directors/trustees and officers of the Funds (collectively, “Defendants”) in California State Court. The lawsuit alleges the Defendants violated federal securities laws by failing to adequately disclose in the prospectuses issued by the funds noted above the risks of using stop-loss orders in the event of a ‘flash crash’, such as the one that occurred on May 6, 2010. On September 18, 2017, the court issued a Statement of Decision holding that the Plaintiffs lack standing to assert their claims. On October 11, 2017, the court entered final judgment dismissing all of the Plaintiffs’ claims with prejudice. In an opinion dated January 23, 2020, the California Court of Appeal affirmed the dismissal of Plaintiffs’ claims. On March 3, 2020, plaintiffs filed a petition for review by the California Supreme Court.

 

13.     SUBSEQUENT EVENTS

 

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

 

N o t e s   t o   F i n a n c i a l    S t a t e m e n t s 37

 

 

 

 

Statement Regarding Liquidity Risk Management Program

 

The Securities and Exchange Commission adopted Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”) to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders.

 

The Board of Directors (the “Board”) of iShares Currency Hedged MSCI Emerging Markets ETF and iShares MSCI Emerging Markets ETF met on December 3, 2019 (the “Meeting”) to review the liquidity risk management program (the “Program”) applicable to the iShares Funds (each, a “Fund”) pursuant to the Liquidity Rule. The Board has appointed BlackRock Fund Advisors (“BlackRock”), the investment adviser to the Funds, as the program administrator for each Fund’s Program, as applicable. BlackRock has delegated oversight of the Program to the 40 Act Liquidity Risk Management Committee (the “Committee”). At the Meeting, the Committee, on behalf of BlackRock, provided the Board with a report that addressed the operation of the Program and assessed its adequacy and effectiveness of implementation, including the operation of each Fund’s Highly Liquid Investment Minimum (“HLIM”) where applicable, and any material changes to the Program (the “Report”). The Report covered the period from December 1, 2018 through September 30, 2019 (the “Program Reporting Period”).

 

The Report described the Program’s liquidity classification methodology for categorizing a Fund’s investments (including derivative transactions) into one of four liquidity buckets. It also described BlackRock’s methodology in establishing a Fund’s HLIM and noted that the Committee reviews and ratifies the HLIM assigned to each Fund no less frequently than annually.

 

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

 

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

 

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

 

c) Holdings of cash and cash equivalents, as well as borrowing arrangements. The Committee considered that ETFs generally do not hold more than de minimus amounts of cash. Funds may borrow for temporary or emergency purposes, including to meet payments due from redemptions or to facilitate the settlement of securities or other transactions.

 

d) The relationship between an ETF’s portfolio liquidity and the way in which, and the prices and spreads at which, ETF shares trade, including the efficiency of the arbitrage function and the level of active participation by market participants, including authorized participants. The Committee monitored the prevailing bid/ask spread and the ETF price premium (or discount) to NAV for all ETFs and reviewed any persistent deviations from long-term averages.

 

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

 

There were no material changes to the Program during the Program Reporting Period. The Report provided to the Board stated that the Committee concluded that based on the operation of the functions, as described in the Report, the Program is operating as intended and is effective in implementing the requirements of the Liquidity Rule.

 

38 2 0 2 0    I S h a r e s    S e m i - A n n u a l    R e p o r t    t o    S h a r e h o l d e r s

 

 

 

 

General Information

 

Electronic Delivery

 

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

 

To enroll in electronic delivery:

 

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

 

Householding

 

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

 

Availability of Quarterly Schedule of Investments

 

The iShares Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT, and for reporting periods ended prior to March 31, 2019, filed such information on Form N-Q. The iShares Funds’ Forms N-Q are available on the SEC’s website at sec.gov. The iShares Funds also disclose their complete schedule of portfolio holdings on a daily basis on the iShares website at iShares.com.

 

Availability of Proxy Voting Policies and Proxy Voting Records

 

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

 

G e n e r a l   I n f o r m a t i o n 39

 

 

 

 

Glossary of Terms Used in this Report

 

Portfolio Abbreviations - Equity

ADR American Depositary Receipt
CPO Certificates of Participation (Ordinary)
GDR Global Depositary Receipt
NVDR Non-Voting Depositary Receipt
NVS Non-Voting Shares

 

Counterparty Abbreviations

MS Morgan Stanley & Co. International PLC

 

Currency Abbreviations

BRL Brazilian Real
CLP Chilean Peso
CNY Chinese Yuan
EUR Euro
HKD Hong Kong Dollar
INR Indian Rupee
KRW South Korean Won
MXN Mexican Peso
MYR Malaysian Ringgit
RUB New Russian Ruble
THB Thai Baht
TRY Turkish Lira
TWD New Taiwan Dollar
USD United States Dollar
ZAR South African Rand

 

40 2 0 2 0    I S h a r e s    S e m i - A n n u a l    R e p o r t    t o    S h a r e h o l d e r s

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Want to know more?

iShares.com | 1-800-474-2737

 

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

 

Investing involves risk, including possible loss of principal.

 

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

 

The iShares Funds are not sponsored, endorsed, issued, sold or promoted by MSCI Inc., nor does this company make any representation regarding the advisability of investing in the iShares Funds. BlackRock is not affiliated with the company listed above.

 

©2020 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.

 

iS-SAR-805-0220

 

   

 

 

(GRAPHIC)   FEBRUARY 29, 2020

 

  2020 Semi-Annual Report
(Unaudited)

 

 

 

iShares, Inc.
   
iShares Edge MSCI Min Vol Emerging Markets ETF | EEMV | Cboe BZX
iShares Edge MSCI Min Vol Global ETF | ACWV | Cboe BZX
iShares Edge MSCI Multifactor Emerging Markets ETF | EMGF | Cboe BZX
iShares ESG MSCI EM ETF | ESGE | NASDAQ
iShares MSCI Emerging Markets ex China ETF | EMXC | NASDAQ

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

You may elect to receive all future reports in paper free of charge. If you hold accounts through a financial intermediary, you can follow the instructions included with this disclosure, if applicable, or contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. Please note that not all financial intermediaries may offer this service. Your election to receive reports in paper will apply to all funds held with your financial intermediary.

 

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive electronic delivery of shareholder reports and other communications by contacting your financial intermediary. Please note that not all financial intermediaries may offer this service.

 

 

 

 

 

 

Fund Summary as of February 29, 2020 iShares® Edge MSCI Min Vol Emerging Markets ETF

 

Investment Objective

 

The iShares Edge MSCI MinVol Emerging Markets ETF (the “Fund”) seeks to track the investment results of an index composed of emerging market equities that, in the aggregate, have lower volatility characteristics relative to the broader emerging equity markets, as represented by the MSCI Emerging Markets Minimum Volatility (USD) Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

 

Performance

 

          Average Annual Total Returns   Cumulative Total Returns  
                        Since                 Since  
      6 Months     1 Year     5 Years     Inception     1 Year     5 Years     Inception  
Fund NAV     (4.88 )%   (7.45 )%   0.63 %   3.49 %   (7.45 )%   3.21 %   33.29 %
Fund Market     (4.58 )   (6.71 )   0.60     3.52     (6.71 )   3.04     33.54  
Index     (4.78 )   (7.28 )   0.86     3.72     (7.28 )   4.35     35.78  

 

The inception date of the Fund was 10/18/11. The first day of secondary market trading was 10/20/11.

 

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 8 for more information.

 

Expense Example

 

Actual     Hypothetical 5% Return        
Beginning
Account Value
(09/01/19)
    Ending
Account Value
(02/29/20)
    Expenses
Paid During
the Period
(a)    Beginning
Account Value
(09/01/19)
    Ending
Account Value
(02/29/20)
    Expenses
Paid During
the Period
(a)    Annualized
Expense
Ratio
 
$ 1,000.00     $ 951.20     $ 1.21     $ 1,000.00     $ 1,023.60     $ 1.26       0.25 %

 

(a) Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 8 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR  
    Percent of  
Sector   Total Investments (a) 
Financials     29.5 %
Communication Services     12.8  
Information Technology     11.2  
Consumer Staples     11.1  
Consumer Discretionary     8.6  
Utilities.     7.4  
Industrials     6.9  
Materials     4.5  
Health Care     4.1  
Energy     3.1  
Real Estate     0.8  
TEN LARGEST GEOGRAPHIC ALLOCATION  
    Percent of  
Country/Geographic Region     Total Investments (a) 
China     29.4 %
Taiwan     17.7  
India     8.9  
Thailand     6.5  
South Korea     6.4  
Malaysia     5.6  
Saudi Arabia     5.3  
Qatar     3.0  
Philippines     2.6  
Indonesia     2.6  


(a) Excludes money market funds.

 

F u n d   S u m m a r y 3

 

 

 

 

Fund Summary as of February 29, 2020 iShares® Edge MSCI Min Vol Global ETF

 

Investment Objective

 

The iShares Edge MSCI Min Vol Global ETF(the “Fund”) seeks to track the investment results of an index composed of developed and emerging market equities that, in the aggregate, have lower volatility characteristics relative to the broader developed and emerging equity markets, as represented by the MSCI ACWI Minimum Volatility (USD) Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

 

Performance

 

                Average Annual Total Returns     Cumulative Total Returns  
                                Since                       Since  
        6 Months       1 Year       5 Years       Inception       1 Year       5 Years       Inception  
Fund NAV       (2.46 )%     5.37 %     7.12 %     9.73 %     5.37 %     41.05 %     117.45 %
Fund Market       (2.27 )     5.58       7.14       9.76       5.58       41.17       117.93  
Index       (2.54 )     5.13       6.87       9.46       5.13       39.38       113.08  

 

The inception date of the Fund was 10/18/11. The first day of secondary market trading was 10/20/11.

 

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 8 for more information.

 

Expense Example

 

Actual     Hypothetical 5% Return        
Beginning
Account Value
(09/01/19)
    Ending
Account Value
(02/29/20)
    Expenses
Paid During
the Period (a)
    Beginning
Account Value
(09/01/19)
    Ending
Account Value
(02/29/20)
    Expenses
Paid During
the Period (a)
    Annualized
Expense
Ratio
 
$ 1,000.00     $ 975.40     $ 0.98     $ 1,000.00     $ 1,023.90     $ 1.01       0.20 %

 

(a) Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 8 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR  
    Percent of  
Sector   Total Investments (a) 
Financials     19.7 %
Consumer Staples     13.1  
Information Technology     11.9  
Communication Services     11.2  
Utilities     8.7  
Real Estate     8.2  
Industrials     7.5  
Health Care     7.3  
Consumer Discretionary     7.1  
Materials     4.7  
Energy     0.6  
TEN LARGEST GEOGRAPHIC ALLOCATION  
    Percent of  
Country/Geographic Region     Total Investments (a) 
United States     51.2 %
Japan     11.6  
Switzerland     5.9  
Canada     5.0  
Taiwan     4.4  
India     3.1  
Hong Kong     2.7  
China     1.7  
Germany     1.2  
United Kingdom     1.1  


(a) Excludes money market funds.

 

4 2 0 2 0  i S h a r e s  S e m i - A n n u a l  R e p o r t  t o  S h a r e h o l d e r s

 

 

 

 

Fund Summary as of February 29, 2020 iShares® Edge MSCI Multifactor Emerging Markets ETF

 

Investment Objective

 

The iShares Edge MSCI Multifactor Emerging Markets ETF (the “Fund”) seeks to track the investment results of an index composed of stocks of large- and mid-capitalization companies in emerging markets that have favorable exposure to target style factors subject to constraints, as represented by the MSCI Emerging Markets Diversified Multiple-Factor Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

 

Performance

 

        Average Annual Total Returns     Cumulative Total Returns
                        Since               Since  
        6 Months       1 Year       Inception       1 Year       Inception  
Fund NAV       2.13 %     (2.27 )%     6.74 %     (2.27 )%     31.73 %
Fund Market       3.36       (1.20 )     6.97       (1.20 )     32.95  
Index       2.46       (1.66 )     6.98       (1.66 )     32.99  

 

The inception date of the Fund was 12/8/15. The first day of secondary market trading was 12/10/15.

 

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 8 for more information.

 

Expense Example

 

Actual     Hypothetical 5% Return        
Beginning
Account Value
(09/01/19)
    Ending
Account Value
(02/29/20)
    Expenses
Paid During
the Period (a)
    Beginning
Account Value
(09/01/19)
    Ending
Account Value
(02/29/20)
    Expenses
Paid During
the Period (a)
    Annualized
Expense
Ratio
 
$ 1,000.00     $ 1,021.30     $ 2.26     $ 1,000.00     $ 1,022.60     $ 2.26       0.45 %

 

(a) Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 8 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR  
    Percent of  
Sector   Total Investments (a) 
Information Technology     22.0 %
Financials     17.9  
Consumer Discretionary     14.7  
Communication Services     9.5  
Health Care     8.0  
Materials     7.6  
Industrials     7.1  
Real Estate     4.4  
Consumer Staples     3.7  
Utilities     2.9  
Energy     2.2  
TEN LARGEST GEOGRAPHIC ALLOCATION  
    Percent of  
Country/Geographic Region     Total Investments (a) 
China     40.7 %
Taiwan     14.6  
Brazil     11.5  
South Korea     9.5  
South Africa     6.1  
India     6.1  
Saudi Arabia     2.6  
Qatar     1.8  
United Arab Emirates     1.4  
Russia     1.4  


(a) Excludes money market funds.

 

F u n d   S u m m a r y 5

 

 

 

 

Fund Summary as of February 29, 2020 iShares® ESG MSCI EM ETF

 

Investment Objective

 

The iShares ESG MSCI EM ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization emerging market equities that have positive environmental, social and governance characteristics, as represented by the MSCI Emerging Markets Extended ESG Focus Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

 

Performance

 

            Average Annual Total Returns     Cumulative Total Returns  
                  Since           Since  
      6 Months     1 Year     Inception     1 Year     Inception  
Fund NAV     3.32%     (1.07 )%   9.24 %   (1.07 )%   38.36 %
Fund Market     4.05     (0.66 )   9.37     (0.66 )   38.96  
Index     3.48     (0.80 )   9.78     (0.80 )   40.89  

 

The inception date of the Fund was 6/28/16. The first day of secondary market trading was 6/30/16.

 

Index performance through May 31, 2018 reflects the performance of the MSCI Emerging Markets ESG Focus Index. Index performance beginning on June 1, 2018 reflects the performance of the MSCI Emerging Markets Extended ESG Focus Index.

 

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 8 for more information.

 

Expense Example

 

Actual     Hypothetical 5% Return        
Beginning
Account Value
(09/01/19)
    Ending
Account Value
(02/29/20)
    Expenses
Paid During
the Period
(a)    Beginning
Account Value
(09/01/19)
    Ending
Account Value
(02/29/20)
    Expenses
Paid During
the Period
(a)    Annualized
Expense
Ratio
 
$ 1,000.00     $ 1,033.20     $ 1.26     $ 1,000.00     $ 1,023.60     $ 1.26       0.25 %

 

(a) Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 8 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR  
    Percent of  
Sector   Total Investments (a) 
Financials     27.5 %
Information Technology     17.7  
Consumer Discretionary     15.4  
Communication Services     10.6  
Energy     6.6  
Consumer Staples     5.9  
Materials     5.3  
Industrials     4.4  
Health Care     2.7  
Utilities     2.0  
Real Estate     1.9  

 

(a) Excludes money market funds.
TEN LARGEST GEOGRAPHIC ALLOCATION  
    Percent of  
Country/Geographic Region     Total Investments (a) 
China     33.2 %
Taiwan     13.5  
South Korea     11.4  
India     9.1  
Brazil     6.4  
South Africa     5.2  
Russia     3.7  
Malaysia     3.2  
Thailand     3.2  
Mexico     2.2  


6 2 0 2 0  i S h a r e s  S e m i - A n n u a l  R e p o r t  t o  S h a r e h o l d e r s

 

 

 

 

Fund Summary as of February 29, 2020 iShares® MSCI Emerging Markets ex China ETF

 

Investment Objective

 

The iShares MSCI Emerging Markets ex China ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization emerging market equities, excluding China, as represented by the MSCI Emerging Markets ex China Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

 

Performance

 

                Average Annual Total Returns       Cumulative Total Returns  
                        Since               Since  
        6 Months       1 Year       Inception       1 Year       Inception  
Fund NAV       (0.59 )%     (4.82 )%     (1.78 )%     (4.82 )%     (4.60 )%
Fund Market       1.71       (2.67 )     (0.94 )     (2.67 )     (2.43 )
Index       (0.83 )     (4.69 )     (1.45 )     (4.69 )     (3.74 )

 

The inception date of the Fund was 7/18/17. The first day of secondary market trading was 7/20/17.

 

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 8 for more information.

 

Expense Example

 

Actual     Hypothetical 5% Return        
Beginning
Account Value
(09/01/19)
    Ending
Account Value
(02/29/20)
    Expenses
Paid During
the Period
(a)    Beginning
Account Value
(09/01/19)
    Ending
Account Value
(02/29/20)
    Expenses
Paid During
the Period
(a)    Annualized
Expense
Ratio
 
$ 1,000.00     $ 994.10     $ 0.79     $ 1,000.00     $ 1,024.10     $ 0.81       0.16 %

 

(a) Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 8 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR  
    Percent of  
Sector   Total Investments (a) 
Financials     21.7 %
Information Technology     21.1  
Exchanged-Traded Funds     13.9  
Materials     8.7  
Energy     6.7  
Consumer Staples     6.3  
Consumer Discretionary     6.1  
Communication Services     5.6  
Industrials     4.3  
Utilities     2.2  
Health Care     1.9  
Real Estate     1.5  

 

(a) Excludes money market funds.
TEN LARGEST GEOGRAPHIC ALLOCATION  
    Percent of  
Country/Geographic Region     Total Investments (a) 
Taiwan     19.0 %
South Korea     17.9  
India     14.0  
Brazil     10.6  
South Africa     6.6  
Russia     5.7  
Saudi Arabia     4.0  
Mexico     3.6  
Thailand     3.6  
Indonesia     2.8  


F u n d   S u m m a r y

7

 

 

 

About Fund Performance

 

Past performance is no guarantee of future results. Financial markets have experienced extreme volatility and trading in many instruments has been disrupted. These circumstances may continue for an extended period of time, and may continue to affect adversely the value and liquidity of the fund’s investments. As a result, current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at iShares.com. Performance results assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. The investment return and principal value of shares will vary with changes in market conditions. Shares may be worth more or less than their original cost when they are redeemed or sold in the market. Performance for certain funds may reflect a waiver of a portion of investment advisory fees. Without such a waiver, performance would have been lower.

 

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

 

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

 

Shareholder Expenses

 

As a shareholder of your Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares and (2) ongoing costs, including management fees and other fund expenses. The expense example, which is based on an investment of $1,000 invested at the beginning of the period (or from the commencement of operations if less than 6 months) and held through the end of the period, is intended to help you understand your ongoing costs (in dollars and cents) of investing in your Fund and to compare these costs with the ongoing costs of investing in other funds.

 

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

 

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

 

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

 

8 2 0 2 0  i S h a r e s  S e m i - A n n u a l  R e p o r t  t o  S h a r e h o l d e r s

 

 

 

 

Consolidated Schedule of Investments (unaudited) iShares® Edge MSCI Min Vol Emerging Markets ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
Common Stocks                
                 
Brazil — 2.0%                
Ambev SA     607,800     $ 1,958,798  
BB Seguridade Participacoes SA     2,347,600       16,572,886  
Equatorial Energia SA     3,369,900       18,419,366  
Hapvida Participacoes e Investimentos SA(a)     472,500       5,781,034  
Hypera SA     2,028,200       15,419,472  
IRB Brasil Resseguros S/A     393,990       2,903,631  
Magazine Luiza SA     1,158,500       12,972,509  
Petrobras Distribuidora SA     1,222,200       7,070,455  
Raia Drogasil SA     163,200       4,337,145  
Rumo SA(b)     1,456,500       6,818,188  
Sul America SA     517,600       6,202,045  
              98,455,529  
Chile — 1.7%                
Aguas Andinas SA, Class A     27,230,511       9,294,815  
Banco de Chile     500,803,614       43,985,835  
Banco de Credito e Inversiones SA     94,636       3,518,582  
Cia. Cervecerias Unidas SA     295,680       2,214,545  
Enel Americas SA     24,476,472       4,087,717  
SACI Falabella     5,575,932       18,488,334  
              81,589,828  
China — 29.4%                
Agricultural Bank of China Ltd., Class A     29,009,298       14,151,484  
Agricultural Bank of China Ltd., Class H     84,739,000       33,925,829  
Alibaba Group Holding Ltd., ADR(b)     117,285       24,395,280  
ANTA Sports Products Ltd.     2,614,000       21,014,506  
AVIC Jonhon Optronic Technology Co. Ltd., Class A     1,132,486       6,365,394  
Bank of Beijing Co. Ltd., Class A     10,539,624       7,704,712  
Bank of China Ltd., Class A     35,499,400       18,028,507  
Bank of China Ltd., Class H     112,412,000       44,427,915  
Bank of Communications Co. Ltd., Class A     20,092,274       14,946,614  
Bank of Communications Co. Ltd., Class H     11,998,000       7,697,885  
Bank of Hangzhou Co. Ltd., Class A     5,520,393       6,783,808  
Bank of Jiangsu Co. Ltd., Class A     12,322,514       11,246,837  
Bank of Nanjing Co. Ltd., Class A     2,422,021       2,688,748  
Bank of Ningbo Co. Ltd., Class A     1,594,696       5,739,829  
Bank of Shanghai Co. Ltd., Class A     13,177,208       16,230,689  
Beijing Capital International Airport Co. Ltd., Class H     8,360,000       6,522,324  
Beijing Sinnet Technology Co. Ltd., Class A     1,601,873       5,751,912  
Beijing Tiantan Biological Products Corp. Ltd., Class A     1,130,296       5,599,575  
BOC Aviation Ltd.(a)     673,500       5,846,527  
BOE Technology Group Co. Ltd., Class A     6,243,100       4,376,297  
CGN Power Co. Ltd., Class H(a)     67,230,000       16,391,143  
China CITIC Bank Corp. Ltd., Class H     21,085,000       10,957,744  
China Construction Bank Corp., Class A     3,317,984       3,085,305  
China Construction Bank Corp., Class H     5,188,000       4,194,045  
China Everbright Bank Co. Ltd., Class H     18,321,000       7,334,936  
China First Capital Group Ltd.(b)     9,978,000       275,280  
China Gas Holdings Ltd.     2,303,000       8,422,312  
China Huishan Dairy Holdings Co. Ltd.(b)(c)     22,241,266       42,810  
China International Travel Service Corp. Ltd., Class A     973,181       10,928,830  
China Life Insurance Co. Ltd., Class H     1,819,000       4,262,123  
China Mengniu Dairy Co. Ltd.     3,126,000       11,211,490  
China Merchants Port Holdings Co. Ltd.     1,702,000       2,502,861  
China Minsheng Banking Corp. Ltd., Class A     18,849,376       15,424,227  
China Mobile Ltd.     8,528,500       67,085,037  
China National Medicines Corp. Ltd., Class A     809,900       3,047,176  
China Pacific Insurance Group Co. Ltd., Class A     753,460       3,437,361  
China Petroleum & Chemical Corp., Class H     52,184,000       26,918,816  
Security   Shares     Value  
             
China (continued)                
China Railway Signal & Communication Corp. Ltd., Class H(a)     26,533,000     $ 13,618,801  
China Reinsurance Group Corp., Class H     103,111,000       14,025,017  
China Resources Beer Holdings Co. Ltd.     4,788,000       22,179,609  
China Resources Gas Group Ltd.     2,592,000       12,938,298  
China Resources Power Holdings Co. Ltd     3,756,000       4,467,842  
China Shenhua Energy Co. Ltd., Class A     2,634,813       6,030,873  
China South Publishing & Media Group Co. Ltd., Class A     1,924,841       3,095,078  
China Telecom Corp. Ltd., Class H     104,828,000       39,412,815  
China Tower Corp. Ltd., Class H(a)     33,728,000       8,179,842  
China Unicom Hong Kong Ltd     2,956,000       2,332,771  
China Yangtze Power Co. Ltd., Class A     19,693,009       47,977,446  
CITIC Ltd     15,595,000       17,309,879  
CNOOC Ltd.     2,043,000       2,799,833  
COSCO SHIPPING Ports Ltd.     13,608,000       9,062,629  
CRRC Corp. Ltd., Class H     10,272,000       6,590,488  
Dali Foods Group Co. Ltd.(a)     5,510,500       3,641,588  
Daqin Railway Co. Ltd., Class A     15,927,133       16,131,742  
Dongfeng Motor Group Co. Ltd., Class H     7,572,000       5,985,271  
ENN Energy Holdings Ltd     1,120,600       12,416,680  
Fiberhome Telecommunication Technologies Co. Ltd., Class A     1,250,482       5,363,144  
Foshan Haitian Flavouring & Food Co. Ltd., Class A     190,395       2,712,302  
Fuyao Glass Industry Group Co. Ltd., Class A     1,164,303       3,859,246  
GCL System Integration Technology Co. Ltd., Class A(b)     5,447,900       4,302,081  
GD Power Development Co. Ltd., Class A     11,031,800       3,314,180  
Giant Network Group Co. Ltd., Class A     1,439,553       3,910,777  
Glodon Co. Ltd., Class A     949,988       6,076,216  
GOME Retail Holdings Ltd.(b)(d)     91,248,000       9,367,116  
Gree Electric Appliances Inc. of Zhuhai, Class A     354,195       2,999,677  
Guangdong Haid Group Co. Ltd., Class A     1,706,288       8,348,123  
Guangdong Investment Ltd     35,946,000       67,528,046  
Hangzhou Hikvision Digital Technology Co. Ltd., Class A     1,374,183       6,880,548  
Henan Shuanghui Investment & Development Co. Ltd., Class A     1,495,794       7,275,471  
Hengan International Group Co. Ltd     2,721,500       20,202,459  
HLA Corp. Ltd., Class A     3,112,203       3,031,974  
Huadian Power International Corp. Ltd., Class H     7,934,000       2,392,504  
Hualan Biological Engineering Inc., Class A     494,600       2,936,382  
Huaneng Power International Inc., Class H     33,336,000       13,431,845  
Huaxia Bank Co. Ltd., Class A     7,764,720       7,720,066  
Industrial & Commercial Bank of China Ltd., Class A     3,699,100       2,804,674  
Industrial & Commercial Bank of China Ltd., Class H     39,314,000       26,888,525  
Industrial Bank Co. Ltd., Class A     6,494,712       16,064,429  
Inner Mongolia Yitai Coal Co. Ltd., Class B     12,530,827       8,596,147  
Jiangsu Expressway Co. Ltd., Class H     21,974,000       25,405,424  
Jiangsu Hengrui Medicine Co. Ltd., Class A     661,143       7,953,351  
Jinyu Bio-Technology Co. Ltd., Class A     1,200,804       3,743,172  
Jointown Pharmaceutical Group Co. Ltd., Class A     2,001,378       4,641,117  
Kunlun Energy Co. Ltd     5,136,000       3,585,225  
Kweichow Moutai Co. Ltd., Class A     33,190       5,018,716  
Laobaixing Pharmacy Chain JSC, Class A     252,573       2,478,686  
Lenovo Group Ltd.(d)     24,774,000       15,290,925  
Meituan Dianping, Class B(b)     412,500       5,234,953  
NetEase Inc., ADR     31,583       10,065,818  
New Oriental Education & Technology Group Inc., ADR(b)     196,062       25,074,369  


S c h e d u l e   o f  I n v e s t m e n t s 9

 

 

 

 

Consolidated Schedule of Investments (unaudited) (continued) iShares® Edge MSCI Min Vol Emerging Markets ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
China (continued)                
PetroChina Co. Ltd., Class A     3,722,800     $ 2,700,151  
PetroChina Co. Ltd., Class H     49,576,000       19,211,929  
Ping An Insurance Group Co. of China Ltd., Class H     990,000       11,007,693  
Postal Savings Bank of China Co. Ltd., Class H(a)     15,576,000       9,833,624  
SAIC Motor Corp. Ltd., Class A     1,476,444       4,691,113  
Sangfor Technologies Inc., Class A     147,700       4,209,013  
SDIC Power Holdings Co. Ltd., Class A     6,272,572       6,783,875  
Shandong Gold Mining Co. Ltd., Class A     2,799,463       13,584,416  
Shandong Weigao Group Medical Polymer Co. Ltd., Class H     3,888,000       5,009,017  
Shanghai Jahwa United Co. Ltd., Class A     722,600       2,660,829  
Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd., Class B     19,736,187       15,631,060  
Shanghai M&G Stationery Inc., Class A     483,300       3,069,801  
Shanghai Pharmaceuticals Holding Co. Ltd., Class H.     3,865,500       7,073,229  
Shanghai Pudong Development Bank Co. Ltd., Class A.     9,172,168       14,236,792  
Shenzhen Airport Co. Ltd., Class A     2,222,800       2,566,163  
Shenzhen Expressway Co. Ltd., Class H     12,716,000       15,387,028  
Shenzhen International Holdings Ltd.     2,571,500       4,923,205  
Shenzhen Mindray Bio-Medical Electronics Co. Ltd., Class A     125,500       4,290,936  
Shenzhou International Group Holdings Ltd.     2,628,500       32,295,298  
Sichuan Chuantou Energy Co. Ltd., Class A     4,692,157       6,141,918  
Sinopec Shanghai Petrochemical Co. Ltd., Class A     4,706,264       2,693,064  
Sinopec Shanghai Petrochemical Co. Ltd., Class H     9,938,000       2,537,725  
Sinopharm Group Co. Ltd., Class H     2,559,600       7,899,138  
Songcheng Performance Development Co. Ltd., Class A     1,288,855       5,085,208  
Sun Art Retail Group Ltd.     5,733,500       7,327,768  
Suning.com Co. Ltd., Class A     3,233,379       4,292,546  
TAL Education Group, ADR(b)(d)     226,527       12,320,803  
Tencent Holdings Ltd.     308,700       15,290,316  
Topchoice Medical Corp., Class A(b)     345,999       5,152,218  
TravelSky Technology Ltd., Class H     1,868,000       3,653,040  
Uni-President China Holdings Ltd.     2,726,000       2,812,383  
Visionox Technology Inc., Class A(b)     1,149,270       2,186,674  
Want Want China Holdings Ltd.(d)     4,764,000       3,680,110  
Wens Foodstuffs Group Co. Ltd., Class A     2,147,191       9,992,292  
WuXi AppTec Co. Ltd., Class H(a)     215,000       3,169,940  
Yum China Holdings Inc.     797,224       34,910,439  
Yunnan Baiyao Group Co. Ltd., Class A     514,467       5,791,452  
Zhaojin Mining Industry Co. Ltd., Class H     18,858,000       22,480,392  
Zhejiang Supor Co. Ltd., Class A     234,185       2,460,715  
Zhongjin Gold Corp. Ltd., Class A     3,689,668       4,280,737  
Zhuzhou CRRC Times Electric Co. Ltd., Class H     693,600       2,425,315  
Zijin Mining Group Co. Ltd., Class A     11,746,600       6,990,623  
Zoomlion Heavy Industry Science and Technology Co.                
Ltd., Class A     4,049,200       3,637,804  
ZTE Corp., Class H(b)     1,816,800       7,518,468  
ZTO Express Cayman Inc., ADR     161,151       3,780,602  
              1,419,337,220  
Czech Republic — 0.4%                
CEZ AS     138,208       2,629,787  
Komercni Banka AS     295,587       9,008,652  
Moneta Money Bank AS(a)     2,423,403       7,991,755  
              19,630,194  
Egypt — 0.5%                
Commercial International Bank Egypt SAE     4,550,008       24,029,980  
Security   Shares     Value  
             
Greece — 0.6%                
Hellenic Telecommunications Organization SA     406,172     $ 5,719,765  
Jumbo SA. .     200,614       3,133,582  
Motor Oil Hellas Corinth Refineries SA     388,404       6,314,305  
OPAP SA     463,992       4,943,817  
Titan Cement International SA(b)     635,497       8,921,225  
              29,032,694  
Hungary — 0.9%                
MOL Hungarian Oil & Gas PLC     1,563,978       12,028,128  
OTP Bank Nyrt . .     206,891       8,945,127  
Richter Gedeon Nyrt     1,074,640       21,728,217  
              42,701,472  
India — 8.9%                
Asian Paints Ltd     1,138,621       28,367,113  
Bajaj Finance Ltd     277,219       17,154,792  
Bajaj Finserv Ltd     130,200       16,328,786  
Bharat Petroleum Corp. Ltd.     700,521       4,138,527  
Bharti Infratel Ltd.     1,062,169       3,156,298  
Britannia Industries Ltd     458,735       18,880,170  
Cipla Ltd.     411,998       2,295,554  
Coal India Ltd.     949,243       2,215,021  
Colgate-Palmolive India Ltd.     177,783       3,166,554  
Dabur India Ltd     3,908,311       26,866,846  
Dr. Reddy’s Laboratories Ltd.     72,800       2,952,754  
Eicher Motors Ltd.     8,660       1,992,259  
HCL Technologies Ltd.     4,076,423       30,183,069  
Hindustan Petroleum Corp. Ltd.     873,295       2,390,542  
Hindustan Unilever Ltd.     1,320,028       39,778,722  
Housing Development Finance Corp. Ltd.     414,963       12,510,559  
Infosys Ltd..     4,507,386       45,699,994  
InterGlobe Aviation Ltd.(a)     373,707       6,732,086  
ITC Ltd.     697,970       1,910,610  
Lupin Ltd.     253,474       2,247,873  
Marico Ltd     3,826,055       15,838,625  
Maruti Suzuki India Ltd.     31,143       2,711,395  
Nestle India Ltd.     41,999       9,182,747  
Petronet LNG Ltd.     3,333,910       11,345,942  
Pidilite Industries Ltd.     208,390       4,369,209  
Power Grid Corp. of India Ltd.     2,587,831       6,508,350  
Reliance Industries Ltd.     548,524       10,098,679  
Sun Pharmaceutical Industries Ltd.     868,140       4,485,806  
Tata Consultancy Services Ltd.     1,327,066       36,780,144  
Tech Mahindra Ltd.     2,030,647       20,945,905  
Titan Co. Ltd.     701,035       12,186,211  
Wipro Ltd.     8,174,132       25,082,780  
              428,503,922  
Indonesia — 2.6%                
Bank Central Asia Tbk PT     33,555,800       73,554,968  
Indofood CBP Sukses Makmur Tbk PT     13,999,800       10,025,994  
Indofood Sukses Makmur Tbk PT     17,469,400       7,914,347  
Telekomunikasi Indonesia Persero Tbk PT     70,766,300       17,213,758  
Unilever Indonesia Tbk PT     40,121,100       19,085,312  
              127,794,379  
Malaysia — 5.6%                
DiGi.Com Bhd     4,212,000       4,157,039  
Fraser & Neave Holdings Bhd     1,485,600       10,827,434  
HAP Seng Consolidated Bhd     8,146,300       17,316,927  
Hong Leong Bank Bhd     4,874,300       17,693,189  
IHH Healthcare Bhd     17,351,500       23,464,662  
IOI Corp. Bhd     2,518,200       2,491,315  


10 2 0 2 0  i S h a r e s  S e m i - A n n u a l  R e p o r t  t o  S h a r e h o l d e r s

 

 

 

 

Consolidated Schedule of Investments (unaudited) (continued) iShares® Edge MSCI Min Vol Emerging Markets ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
Malaysia (continued)                
Kuala Lumpur Kepong Bhd     2,842,700     $ 14,729,435  
Malayan Banking Bhd     26,970,800       53,877,612  
Maxis Bhd(d)     8,993,900       11,586,448  
Nestle Malaysia Bhd     275,700       9,353,523  
Petronas Chemicals Group Bhd     5,845,100       7,488,384  
Petronas Dagangan Bhd     1,511,900       8,192,597  
PPB Group Bhd     3,736,600       16,045,661  
Public Bank Bhd     12,667,180       51,389,983  
Tenaga Nasional Bhd     6,194,400       17,782,263  
Westports Holdings Bhd     4,117,800       3,360,672  
              269,757,144  
Mexico — 1.4%                
Arca Continental SAB de CV     2,652,400       14,468,854  
Coca-Cola Femsa SAB de CV     735,500       4,048,938  
Gruma SAB de CV, Series B     864,185       8,253,116  
Infraestructura Energetica Nova SAB de CV     2,127,400       9,201,020  
Wal-Mart de Mexico SAB de CV     10,798,200       30,109,395  
              66,081,323  
Pakistan — 0.1%                
MCB Bank Ltd.     3,541,600       4,489,930  
                 
Peru — 1.0%                
Cia. de Minas Buenaventura SAA, ADR     465,941       5,195,242  
Credicorp Ltd.     230,004       41,692,825  
              46,888,067  
Philippines — 2.6%                
Aboitiz Power Corp.     20,412,300       11,012,031  
Bank of the Philippine Islands     15,263,288       22,187,536  
BDO Unibank Inc     11,843,053       32,293,955  
International Container Terminal Services Inc.     4,881,660       10,151,171  
Jollibee Foods Corp.     5,763,140       19,219,888  
Manila Electric Co.     1,892,810       10,018,247  
Metropolitan Bank & Trust Co.     5,833,583       6,414,366  
Security Bank Corp.     1,801,950       5,457,991  
SM Investments Corp.     152,185       2,909,353  
Universal Robina Corp.     3,052,200       8,460,537  
              128,125,075  
Poland — 0.1%                
Cyfrowy Polsat SA     685,921       4,384,105  
                 
Qatar — 3.0%                
Barwa Real Estate Co.     20,803,407       17,594,893  
Commercial Bank PSQC (The)     3,726,600       4,600,678  
Masraf Al Rayan QSC     31,046,143       34,474,068  
Qatar Electricity & Water Co. QSC     5,751,778       23,617,237  
Qatar Fuel QSC     830,158       4,371,279  
Qatar International Islamic Bank QSC     3,444,956       7,989,012  
Qatar Islamic Bank SAQ     4,906,146       20,881,204  
Qatar National Bank QPSC     5,772,119       29,669,256  
              143,197,627  
Russia — 0.8%                
Polymetal International PLC     538,711       8,217,748  
Polyus PJSC     163,858       20,638,305  
Rosneft Oil Co. PJSC     1,384,750       8,312,621  
Rosneft Oil Co. PJSC, GDR(e)     146,189       884,444  
              38,053,118  
Saudi Arabia — 5.3%                
Al Rajhi Bank     902,553       14,892,185  
Alinma Bank     4,992,185       30,952,478  
Security   Shares     Value  
             
Saudi Arabia (continued)                
Bank AlBilad.     1,375,407     $ 8,784,420  
Bank Al-Jazira     1,540,464       5,715,916  
Bupa Arabia for Cooperative Insurance Co     505,520       13,070,889  
Co for Cooperative Insurance (The)(b)     576,544       10,573,431  
Emaar Economic City(b)     1,088,917       2,687,824  
Etihad Etisalat Co.(b)     1,644,001       10,052,881  
Jarir Marketing Co.     1,052,604       42,592,373  
Saudi Airlines Catering Co.     727,997       17,697,808  
Saudi Arabian Fertilizer Co.     795,100       14,242,495  
Saudi Basic Industries Corp     1,304,600       27,368,258  
Saudi Electricity Co.     2,140,816       9,587,021  
Saudi Telecom Co.     1,696,383       37,350,722  
Savola Group (The)(b)     359,407       3,204,629  
Yanbu National Petrochemical Co.     567,435       7,487,147  
              256,260,477  
South Africa — 0.3%                
AngloGold Ashanti Ltd.     682,875       12,057,477  
Gold Fields Ltd.     854,670       5,010,181  
              17,067,658  
South Korea — 6.4%                
BGF retail Co. Ltd.     28,154       3,512,006  
Cheil Worldwide Inc.     234,636       3,738,334  
CJ CheilJedang Corp.     14,366       2,886,212  
CJ Logistics Corp.(b)(d)     61,744       6,787,010  
Coway Co. Ltd..     123,789       7,022,694  
DB Insurance Co. Ltd.     455,563       16,241,974  
Fila Holdings Corp.     51,825       1,638,600  
GS Retail Co. Ltd.     110,484       3,215,817  
Hyundai Glovis Co. Ltd.     42,676       4,322,065  
Hyundai Marine & Fire Insurance Co. Ltd.     256,859       4,779,756  
Hyundai Mobis Co. Ltd.     15,858       2,742,017  
Kangwon Land Inc.(b)     943,413       17,710,841  
Kia Motors Corp.     295,549       8,821,450  
Korea Electric Power Corp.(b)     295,905       5,189,606  
KT&G Corp     522,798       36,460,264  
LG Uplus Corp.     473,986       5,151,598  
Lotte Shopping Co. Ltd.     31,224       2,447,530  
NAVER Corp     121,143       17,356,016  
NCSoft Corp.     41,557       22,207,075  
Pearl Abyss Corp.(b)(d)     15,645       2,282,663  
S-1 Corp.     280,572       18,989,723  
Samsung Biologics Co. Ltd.(a)(b)     11,437       4,364,800  
Samsung Electronics Co. Ltd.     611,084       27,271,102  
Samsung Fire & Marine Insurance Co. Ltd.     121,220       19,762,503  
Samsung Life Insurance Co. Ltd.     313,637       15,107,258  
SK Hynix Inc.     209,677       15,175,470  
SK Telecom Co. Ltd.     202,638       35,455,393  
              310,639,777  
Taiwan — 17.7%                
Accton Technology Corp.     727,000       3,925,577  
Advantech Co. Ltd.     3,564,333       34,666,889  
Asustek Computer Inc.     2,924,000       19,892,799  
AU Optronics Corp.     23,251,000       7,294,853  
Cathay Financial Holding Co. Ltd.     4,866,034       6,436,191  
Chicony Electronics Co. Ltd.     10,304,455       28,415,991  
China Development Financial Holding Corp     23,311,000       7,051,925  
Chunghwa Telecom Co. Ltd.     21,131,000       75,369,408  
Compal Electronics Inc.     36,269,000       22,099,541  
E.Sun Financial Holding Co. Ltd.     37,321,701       35,806,252

 



S c h e d u l e   o f   I n v e s t m e n t s 11

 

 

 

 

Consolidated Schedule of Investments (unaudited) (continued) iShares® Edge MSCI Min Vol Emerging Markets ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
Taiwan (continued)                
Eva Airways Corp.     8,699,685     $ 3,462,118  
Far EasTone Telecommunications Co. Ltd.     28,612,000       62,459,856  
First Financial Holding Co. Ltd.     105,522,437       82,593,232  
Formosa Petrochemical Corp.     3,172,000       9,019,607  
Formosa Plastics Corp.     3,295,840       9,905,099  
Hua Nan Financial Holdings Co. Ltd.     74,907,310       53,311,730  
Lite-On Technology Corp.     11,174,752       16,182,991  
Mega Financial Holding Co. Ltd.     17,225,000       18,402,838  
Pou Chen Corp.     4,393,000       4,947,284  
Powertech Technology Inc.     3,218,000       10,840,205  
President Chain Store Corp.     3,627,000       35,515,960  
Quanta Computer Inc.     3,800,000       7,780,842  
Standard Foods Corp.     2,367,476       5,308,926  
Synnex Technology International Corp.     16,253,000       20,182,394  
Taiwan Business Bank     42,940,147       17,017,512  
Taiwan Cooperative Financial Holding Co. Ltd     115,316,631       79,786,107  
Taiwan High Speed Rail Corp.     10,338,000       11,778,959  
Taiwan Mobile Co. Ltd.     20,596,000       71,420,598  
Taiwan Semiconductor Manufacturing Co. Ltd.     5,776,000       60,278,935  
Uni-President Enterprises Corp.     4,134,000       9,993,851  
United Microelectronics Corp.     7,145,000       3,610,314  
WPG Holdings Ltd.     14,722,440       18,865,261  
              853,624,045  
Thailand — 6.5%                
Advanced Info Service PCL, NVDR     2,992,200       18,964,982  
Airports of Thailand PCL, NVDR     24,427,300       46,253,563  
Bangkok Dusit Medical Services PCL, NVDR     50,485,800       35,518,452  
Bangkok Expressway & Metro PCL, NVDR     93,739,200       27,478,612  
BTS Group Holdings PCL, NVDR.     116,434,200       40,219,705  
Bumrungrad Hospital PCL, NVDR     3,708,500       15,101,957  
Central Pattana PCL, NVDR     1,755,000       2,947,710  
CP ALL PCL, NVDR     20,331,400       42,363,795  
Electricity Generating PCL, NVDR     2,616,000       22,632,483  
Home Product Center PCL, NVDR     35,199,300       14,278,277  
Intouch Holdings PCL, NVDR     9,134,500       15,631,849  
Kasikornbank PCL, NVDR     672,000       2,534,242  
Krung Thai Bank PCL, NVDR     38,213,400       16,954,131  
Minor International PCL, NVDR     4,365,000       3,804,072  
Siam Cement PCL (The), NVDR     625,400       6,144,002  
Thai Union Group PCL, NVDR     10,312,900       5,000,392  
              315,828,224  
United Arab Emirates — 1.9%                
Dubai Islamic Bank PJSC     5,099,673       7,497,681  
Emirates Telecommunications Group Co. PJSC     9,296,530       39,991,607  
First Abu Dhabi Bank PJSC     12,041,610       46,948,149  
              94,437,437  
                 
Total Common Stocks — 99.7%                
(Cost: $4,610,654,882)             4,819,909,225  
Security   Shares     Value  
             
Preferred Stocks                
                 
Brazil — 0.1%                
Telefonica Brasil SA, Preference Shares, NVS     443,100     $ 5,242,578  
                 
Russia — 0.1%                
Surgutneftegas PJSC, Preference Shares, NVS     4,400,000       2,145,655  
Transneft PJSC, Preference Shares, NVS     968       2,187,363  
              4,333,018  
Total Preferred Stocks — 0.2%                
(Cost: $10,075,279)             9,575,596  
                 
Warrants                
                 
Thailand — 0.0%                
BTS Group Holdings PCL (Expires 02/16/21)(b)     12,465,440       339,733  
                 
Total Warrants — 0.0%                
(Cost: $0)             339,733  
                 
Short-Term Investments                
                 
Money Market Funds — 0.8%                
BlackRock Cash Funds: Institutional, SL Agency Shares, 1.74%(f)(g)(h)     36,842,535       36,868,324  
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52%(f)(g)     2,109,000       2,109,000  
              38,977,324  
                 
Total Short-Term Investments — 0.8%                
(Cost: $38,963,388)             38,977,324  
                 
Total Investments in Securities — 100.7%          
(Cost: $4,659,693,549)             4,868,801,878  
                 
Other Assets, Less Liabilities — (0.7)%.             (36,184,273 )
                 
Net Assets — 100.0%           $ 4,832,617,605  

 

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

(b) Non-income producing security.

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

(d) All or a portion of this security is on loan.

(e) This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933.

(f) Affiliate of the Fund.

(g) Annualized 7-day yield as of period-end.

(h) All or a portion of this security was purchased with cash collateral received from loaned securities.



12 2 0 2 0  i S h a r e s  S e m i - A n n u a l  R e p o r t  t o  S h a r e h o l d e r s

 

 

 

 

Consolidated Schedule of Investments (unaudited) (continued) iShares® Edge MSCI Min Vol Emerging Markets ETF
February 29, 2020  

 

Affiliates

 

Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940Act, were as follows:

 

Affiliated Issuer   Shares
Held at
08/31/19
    Net Activity     Shares
Held at
02/29/20
    Value at
02/29/20
    Income     Net Realized
Gain (Loss)(a)
    Change in
Unrealized
Appreciation
(Depreciation)
 
BlackRock Cash Funds: Institutional, SL Agency Shares     34,271,854       2,570,681       36,842,535     $ 36,868,324     $ 163,568 (b)   $ 3,311     $ 2,644  
BlackRock Cash Funds: Treasury, SL Agency Shares     16,273,000       (14,164,000 )     2,109,000       2,109,000       88,502              
                            $ 38,977,324     $ 252,070     $ 3,311     $ 2,644  

 

(a) Includes realized capital gain distributions from an affiliated fund, if any.

(b) Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

 

Futures Contracts

 

Description   Number of
Contracts
    Expiration
Date
  Notional
Amount
(000)
    Value/
Unrealized
Appreciation
(Depreciation)
 
Long Contracts                            
MSCI Emerging Markets E-Mini     53     03/20/20   $ 2,673     $ (314,457 )

 

Derivative Financial Instruments Categorized by Risk Exposure

 

As of February 29, 2020, the fair values of derivative financial instruments located in the Consolidated Statements of Assets and Liabilities were as follows:

 

    Equity  
    Contracts  
Liabilities — Derivative Financial Instruments        
Futures contracts        
Unrealized depreciation on futures contracts(a)   $ 314,457  

 

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

 

For the six months ended February 29, 2020, the effect of derivative financial instruments in the Consolidated Statements of Operations was as follows:

 

    Equity  
    Contracts  
Net Realized Gain (Loss) from:        
Futures contracts   $ (163,858 )
Net Change in Unrealized Appreciation (Depreciation) on:        
Futures contracts   $ (128,587 )

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:      
Average notional value of contracts — long   $ 7,605,507  

 

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

 

Fair Value Measurements

 

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

 

S c h e d u l e   OF   I n v e s t m e n t s 13

 

 

 

 

Consolidated Schedule of Investments (unaudited) (continued) iShares® Edge MSCI Min Vol Emerging Markets ETF
February 29, 2020  

 

Fair Value Measurements (continued)

 

The following table summarizes the value of the Fund's investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund's investments into major categories is disclosed in the Consolidated Schedule of Investments above.

 

    Level 1     Level 2     Level 3     Total  
Investments                        
Assets                        
Common Stocks   $ 4,819,866,415     $     $ 42,810     $ 4,819,909,225  
Preferred Stocks     9,575,596                   9,575,596  
Warrants     339,733                   339,733  
Money Market Funds     38,977,324                   38,977,324  
    $ 4,868,759,068     $     $ 42,810     $ 4,868,801,878  
Derivative financial instruments(a)                                
Liabilities                                
Futures Contracts   $ (314,457 )   $     $     $ (314,457 )

 

(a) Shown at the unrealized appreciation (depreciation) on the contracts.

 

See notes to financial statements

 

14 2 0 2 0  i S h a r e s  S e m i - A n n u a l  R e p o r t  t o  S h a r e h o l d e r s

 

 

 

 

Schedule of Investments (unaudited) iShares® Edge MSCI Min Vol Global ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
Common Stocks                
                 
Australia — 0.4%                
Newcrest Mining Ltd.     202,932     $ 3,441,102  
Woolworths Group Ltd.     626,179       15,664,679  
              19,105,781  
Belgium — 0.5%                
Colruyt SA     125,457       5,763,139  
Proximus SADP     339,051       8,327,545  
Telenet Group Holding NV     85,798       3,253,330  
UCB SA     76,791       7,048,373  
              24,392,387  
Brazil — 0.2%                
BB Seguridade Participacoes SA     417,100       2,944,518  
Magazine Luiza SA     511,300       5,725,372  
Petrobras Distribuidora SA     379,800       2,197,152  
              10,867,042  
Canada — 5.0%                
Agnico Eagle Mines Ltd.     543,875       25,805,042  
Barrick Gold Corp.     2,161,406       41,220,243  
BCE Inc.     345,974       15,193,629  
CGI Inc.(a)     185,161       13,008,928  
Empire Co. Ltd., Class A, NVS     315,441       7,047,399  
Fairfax Financial Holdings Ltd.     18,802       8,098,860  
Franco-Nevada Corp.     414,663       44,513,680  
Intact Financial Corp     311,949       33,810,452  
Kinross Gold Corp.(a)     1,604,237       8,066,897  
Kirkland Lake Gold Ltd.     77,225       2,490,461  
Loblaw Companies Ltd.     162,403       8,045,442  
Metro Inc.     122,801       4,782,684  
RioCan REIT     176,294       3,292,502  
Rogers Communications Inc., Class B, NVS     125,831       5,765,907  
Shaw Communications Inc., Class B, NVS     268,397       4,644,737  
TELUS Corp.     451,912       16,307,682  
Thomson Reuters Corp.     165,681       12,306,815  
Waste Connections Inc.     128,203       12,370,307  
              266,771,667  
Chile — 0.2%                
Banco de Chile     81,689,581       7,174,837  
SACI Falabella     1,303,410       4,321,767  
              11,496,604  
China — 1.6%                
Agricultural Bank of China Ltd., Class A     10,295,099       5,022,215  
Agricultural Bank of China Ltd., Class H     6,274,000       2,511,838  
Bank of Communications Co. Ltd., Class A     4,771,300       3,549,363  
Bank of Communications Co. Ltd., Class H     6,385,000       4,096,599  
China Huishan Dairy Holdings Co. Ltd.(a)(b)     2,093,055       4,029  
China Minsheng Banking Corp. Ltd., Class A     3,351,599       2,742,575  
China Mobile Ltd.     3,321,000       26,122,930  
China Resources Pharmaceutical Group Ltd.(c)     3,334,500       2,901,035  
China Telecom Corp. Ltd., Class H     30,622,000       11,513,138  
China Unicom Hong Kong Ltd.     3,112,000       2,455,881  
COSCO SHIPPING Ports Ltd.     3,168,000       2,109,818  
CRRC Corp. Ltd., Class A     2,778,897       2,544,268  
Guangdong Investment Ltd.     4,005,147       7,524,057  
Industrial & Commercial Bank of China Ltd., Class A     5,455,051       4,136,043  
Jiangsu Expressway Co. Ltd., Class H     2,786,000       3,221,057  
Lenovo Group Ltd.     4,344,000       2,681,189  
Shenzhen International Holdings Ltd.     2,075,000       3,972,642  
              87,108,677  
Security   Shares     Value  
             
Denmark — 0.6%                
                 
Carlsberg A/S, Class B     40,532     $ 5,288,169  
Coloplast A/S, Class B     82,719       11,001,397  
Novo Nordisk A/S, Class B     182,485       10,616,782  
Tryg A/S     263,730       7,256,970  
              34,163,318  
Egypt — 0.1%                
Commercial International Bank Egypt SAE     575,748       3,040,701  
                 
Finland — 0.7%                
Elisa OYJ     322,897       18,422,396  
Nokia OYJ     2,722,794       10,303,485  
Sampo OYJ, Class A     234,378       9,494,846  
              38,220,727  
France — 0.9%                
Eurazeo SE .     39,100       2,602,733  
Getlink SE     258,362       4,137,770  
Hermes International     26,046       18,024,438  
Orange SA     1,656,547       22,181,332  
Pernod Ricard SA     16,515       2,655,827  
              49,602,100  
Germany — 1.2%                
Deutsche Telekom AG, Registered     2,931,007       47,507,881  
Hannover Rueck SE     16,791       2,969,495  
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen, Registered .     36,971       9,368,907  
Telefonica Deutschland Holding AG     2,014,778       5,225,205  
              65,071,488  
Hong Kong — 2.7%                
CLP Holdings Ltd.     1,789,254       18,780,962  
Dairy Farm International Holdings Ltd.     447,900       2,149,920  
Hang Seng Bank Ltd     1,290,400       26,907,308  
HK Electric Investments & HK Electric Investments Ltd.     5,889,000       5,924,479  
HKT Trust & HKT Ltd.     8,635,000       12,919,730  
Hong Kong & China Gas Co. Ltd.     5,257,130       10,118,882  
Jardine Matheson Holdings Ltd.     213,200       11,598,080  
Jardine Strategic Holdings Ltd.     173,800       4,989,798  
Link REIT     1,622,600       15,032,846  
MTR Corp. Ltd.     3,265,500       18,374,343  
PCCW Ltd.     9,513,000       5,725,097  
Power Assets Holdings Ltd.     1,220,500       8,692,072  
Yue Yuen Industrial Holdings Ltd.     980,000       2,361,643  
              143,575,160  
Hungary — 0.1%                
OTP Bank Nyrt     130,886       5,658,979  
                 
India — 3.1%                
Asian Paints Ltd.     342,261       8,526,943  
Avenue Supermarts Ltd.(a)(c)     142,727       4,596,119  
Bajaj Auto Ltd.     54,373       2,177,406  
Bajaj Finance Ltd.     216,107       13,373,076  
Bajaj Finserv Ltd.     89,551       11,230,869  
Bharat Petroleum Corp. Ltd.     761,807       4,500,591  
Bosch Ltd.     16,444       2,763,574  
Britannia Industries Ltd.     124,478       5,123,145  
Coal India Ltd.     2,804,772       6,544,824  
Dabur India Ltd.     971,637       6,679,310  
Dr. Reddy's Laboratories Ltd.     69,129       2,803,859  
Eicher Motors Ltd.     21,181       4,872,753  
HCL Technologies Ltd.     1,048,926       7,766,565  


S c h e d u l e   o f   I n v e s t m e n t s 15

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® Edge MSCI Min Vol Global ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
India (continued)                
Hero MotoCorp Ltd.     88,004     $ 2,501,988  
Hindustan Petroleum Corp. Ltd.     1,360,485       3,724,167  
Hindustan Unilever Ltd.     191,668       5,775,868  
Housing Development Finance Corp. Ltd.     174,955       5,274,650  
Indian Oil Corp. Ltd.     3,530,905       5,173,980  
Infosys Ltd.     617,084       6,256,561  
InterGlobe Aviation Ltd.(c)     207,670       3,741,038  
ITC Ltd.     728,704       1,994,741  
Larsen & Toubro Ltd.     143,150       2,355,600  
LIC Housing Finance Ltd.     486,824       2,160,327  
Mahindra & Mahindra Financial Services Ltd.     626,741       2,980,966  
Maruti Suzuki India Ltd.     79,224       6,897,458  
Petronet LNG Ltd.     1,422,109       4,839,713  
Pidilite Industries Ltd.     272,347       5,710,164  
Sun Pharmaceutical Industries Ltd.     462,512       2,389,867  
Tata Consultancy Services Ltd.     278,961       7,731,511  
Tech Mahindra Ltd.     420,660       4,339,063  
United Spirits Ltd.(a)     339,131       3,225,310  
Wipro Ltd.     304,407       934,090  
Wipro Ltd., ADR     1,567,897       5,409,245  
              164,375,341  
Indonesia — 0.7%                
Bank Central Asia Tbk PT     12,833,000       28,130,186  
Indofood CBP Sukses Makmur Tbk PT     4,054,600       2,903,713  
Kalbe Farma Tbk PT     28,272,600       2,404,082  
Unilever Indonesia Tbk PT     6,167,200       2,933,692  
              36,371,673  
Ireland — 0.5%                
AIB Group PLC     767,000       1,767,588  
Kerry Group PLC, Class A     195,164       24,653,450  
              26,421,038  
Israel — 0.5%                
Azrieli Group Ltd.     60,688       4,415,063  
Bank Hapoalim BM     513,406       4,010,019  
Bank Leumi Le-Israel BM     694,248       4,505,831  
Check Point Software Technologies Ltd.(a)(d)     27,913       2,897,370  
Mizrahi Tefahot Bank Ltd     311,489       8,029,447  
Nice Ltd.(a)     24,538       3,921,695  
              27,779,425  
Italy — 0.4%                
Assicurazioni Generali SpA     862,516       15,405,218  
Intesa Sanpaolo SpA     2,081,952       5,027,793  
              20,433,011  
Japan — 11.6%                
ABC-Mart Inc.     76,700       4,380,216  
Ajinomoto Co. Inc.     256,700       4,312,246  
ANA Holdings Inc.     262,000       7,062,207  
Asahi Group Holdings Ltd.     60,600       2,331,526  
Canon Inc.     1,150,100       29,145,676  
Daiwa House REIT Investment Corp.     4,089       10,204,967  
East Japan Railway Co.     78,200       6,031,111  
FUJIFILM Holdings Corp.     203,900       9,975,250  
Hamamatsu Photonics KK     184,800       7,169,963  
Hankyu Hanshin Holdings Inc.     71,700       2,359,755  
Japan Airlines Co. Ltd.     264,700       6,571,794  
Japan Post Bank Co. Ltd.     942,800       8,425,895  
Japan Post Holdings Co. Ltd.     3,169,900       27,644,972  
Japan Prime Realty Investment Corp.     1,799       7,922,171  
Japan Real Estate Investment Corp.     3,039       20,736,142  
Security   Shares     Value  
             
Japan (continued)                
Japan Retail Fund Investment Corp.     5,949     $ 11,311,731  
Japan Tobacco Inc.     118,600       2,357,376  
KDDI Corp.     632,900       17,942,875  
Keikyu Corp.     166,700       2,531,448  
Keio Corp.     133,000       6,399,388  
Kintetsu Group Holdings Co. Ltd.     192,200       8,312,363  
Kirin Holdings Co. Ltd.     122,800       2,362,305  
Kyushu Railway Co.     363,000       10,920,456  
Lawson Inc.     113,700       6,039,967  
McDonald’s Holdings Co. Japan Ltd.     145,600       6,114,755  
MEIJI Holdings Co. Ltd.     115,300       6,883,901  
Mizuho Financial Group Inc.     11,149,900       15,257,268  
Nagoya Railroad Co. Ltd.     390,900       10,215,984  
NEC Corp.     506,500       18,970,565  
Nippon Building Fund Inc.     3,024       22,680,350  
Nippon Prologis REIT Inc.     3,991       10,829,886  
Nippon Telegraph & Telephone Corp.     1,263,900       29,639,225  
Nissan Motor Co. Ltd.     611,100       2,626,486  
Nissin Foods Holdings Co. Ltd.     41,900       3,301,813  
Nitori Holdings Co. Ltd.     80,300       11,140,681  
Nomura Real Estate Master Fund Inc.     9,086       14,429,442  
Nomura Research Institute Ltd.     159,690       3,486,487  
NTT Data Corp.     793,000       9,491,151  
NTT DOCOMO Inc.     1,989,600       53,998,554  
Ono Pharmaceutical Co. Ltd.     134,200       2,749,567  
Oracle Corp. Japan     64,500       5,046,864  
Oriental Land Co. Ltd.     201,800       22,946,062  
Orix JREIT Inc.     5,286       10,046,169  
Pan Pacific International Holdings Corp.     233,600       3,872,218  
Sankyo Co. Ltd.     106,600       3,503,426  
Secom Co. Ltd.     333,700       26,528,322  
Seibu Holdings Inc     135,900       1,922,620  
Seven & i Holdings Co. Ltd.     77,900       2,669,248  
Shimamura Co. Ltd.     49,000       3,275,298  
Shionogi & Co. Ltd.     49,029       2,656,789  
Softbank Corp.     532,000       6,966,579  
Suntory Beverage & Food Ltd.     301,500       11,488,110  
Takeda Pharmaceutical Co. Ltd.     127,900       4,461,945  
Tobu Railway Co. Ltd.     423,600       12,645,362  
Toho Co. Ltd.     170,600       5,258,842  
Toyo Suisan Kaisha Ltd.     192,100       7,613,475  
United Urban Investment Corp.     6,725       10,760,998  
USS Co. Ltd.     156,200       2,470,470  
West Japan Railway Co     208,200       14,704,191  
Yamada Denki Co. Ltd.     1,396,500       6,719,358  
Yamazaki Baking Co. Ltd.     229,900       3,911,060  
              613,735,321  
Malaysia — 0.6%                
Hong Leong Bank Bhd     1,464,900       5,317,431  
IHH Healthcare Bhd     2,113,600       2,858,249  
Malayan Banking Bhd     3,254,100       6,500,480  
Maxis Bhd(d)     3,721,000       4,793,601  
Petronas Chemicals Group Bhd     1,440,300       1,845,224  
Petronas Dagangan Bhd     481,700       2,610,208  
Public Bank Bhd     2,412,860       9,788,827  
              33,714,020  
Netherlands — 0.5%                
Koninklijke Ahold Delhaize NV     677,679       15,766,313  
Koninklijke KPN NV     1,839,795       4,448,050  


16 2 0 2 0  i S h a r e s  S e m i - A n n u a l  R e p o r t  t o  S h a r e h o l d e r s

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® Edge MSCI Min Vol Global ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
Netherlands (continued)                
Unilever NV     155,026     $ 8,108,275  
              28,322,638  
New Zealand — 0.2%                
Auckland International Airport Ltd.     517,229       2,524,785  
Fisher & Paykel Healthcare Corp. Ltd.     212,599       3,399,468  
Spark New Zealand Ltd.     2,360,369       6,639,326  
              12,563,579  
Norway — 0.2%                
Telenor ASA     791,294       12,560,554  
                 
Peru — 0.1%                
Cia. de Minas Buenaventura SAA, ADR     291,426       3,249,400  
Credicorp Ltd.     13,267       2,404,909  
              5,654,309  
Philippines — 0.3%                
Bank of the Philippine Islands     2,085,239       3,031,215  
BDO Unibank Inc.     3,115,509       8,495,454  
Jollibee Foods Corp.     1,037,910       3,461,397  
PLDT Inc.     144,835       2,812,882  
              17,800,948  
Qatar — 0.4%                
Qatar Islamic Bank SAQ     1,111,882       4,732,316  
Qatar National Bank QPSC     2,691,706       13,835,632  
              18,567,948  
Russia — 0.3%                
Polymetal International PLC     464,971       7,092,884  
Polyus PJSC     62,364       7,854,894  
              14,947,778  
Saudi Arabia — 0.9%                
Alinma Bank     1,684,590       10,444,772  
Arab National Bank     399,528       2,694,405  
Bank AlBilad     421,940       2,694,837  
Bank Al-Jazira     967,962       3,591,638  
Jarir Marketing Co.     125,356       5,072,382  
Saudi Arabian Fertilizer Co.     331,847       5,944,321  
Saudi Basic Industries Corp.     137,457       2,883,611  
Saudi Telecom Co.     450,310       9,914,862  
Yanbu National Petrochemical Co.     182,533       2,408,472  
              45,649,300  
Singapore — 1.1%                
CapitaLand Commercial Trust     3,614,900       4,817,449  
CapitaLand Mall Trust     5,602,800       9,112,529  
Oversea-Chinese Banking Corp. Ltd.(d)     609,300       4,627,484  
SATS Ltd.(d)     1,581,000       4,565,043  
Singapore Airlines Ltd.     1,253,500       7,184,925  
Singapore Exchange Ltd.     168,900       1,027,414  
Singapore Telecommunications Ltd.     11,253,800       24,189,582  
              55,524,426  
South Korea — 0.4%                
DB Insurance Co. Ltd.     113,983       4,063,783  
Hyundai Marine & Fire Insurance Co. Ltd.     122,351       2,276,766  
KT&G Corp.     32,517       2,267,756  
S-1 Corp.     39,665       2,684,613  
Samsung Fire & Marine Insurance Co. Ltd.     21,387       3,486,724  
SK Telecom Co. Ltd.     45,120       7,894,607  
              22,674,249  
Sweden — 0.2%                
Telefonaktiebolaget LM Ericsson, Class B     985,097       7,791,280  
Security   Shares     Value  
             
Sweden (continued)                
Telia Co. AB     627,305     $ 2,454,196  
              10,245,476  
Switzerland — 5.9%                
Chocoladefabriken Lindt & Spruengli AG, Registered     227       19,629,010  
Givaudan SA, Registered     3,100       9,627,150  
Kuehne + Nagel International AG, Registered     68,077       9,885,038  
Nestle SA, Registered     592,310       60,488,500  
Novartis AG, Registered.     310,684       26,078,904  
Partners Group Holding AG     9,194       7,893,191  
Roche Holding AG, NVS     116,848       37,386,048  
Sonova Holding AG, Registered     32,915       7,814,316  
Swiss Life Holding AG, Registered     9,844       4,460,539  
Swiss Prime Site AG, Registered     97,495       11,683,888  
Swiss Re AG     549,260       52,000,812  
Swisscom AG, Registered     58,798       31,198,567  
Zurich Insurance Group AG     84,334       32,315,182  
              310,461,145  
Taiwan — 4.3%                
Advantech Co. Ltd.     793,000       7,712,759  
Asustek Computer Inc.     1,510,000       10,272,957  
AU Optronics Corp     13,965,000       4,381,430  
Chang Hwa Commercial Bank Ltd.     11,513,732       8,821,763  
Chicony Electronics Co. Ltd.     1,361,020       3,753,205  
China Development Financial Holding Corp.     28,325,000       8,568,735  
China Steel Corp.     9,637,000       7,320,167  
Chunghwa Telecom Co. Ltd.     8,805,000       31,405,406  
Compal Electronics Inc.     9,729,000       5,928,105  
CTBC Financial Holding Co. Ltd.     4,568,000       3,424,548  
E.Sun Financial Holding Co. Ltd.     13,885,568       13,321,744  
Far EasTone Telecommunications Co. Ltd.     3,526,000       7,697,241  
First Financial Holding Co. Ltd.     23,510,606       18,401,934  
Formosa Petrochemical Corp.     967,000       2,749,672  
Hua Nan Financial Holdings Co. Ltd.     18,978,332       13,506,929  
Inventec Corp.     3,775,000       2,861,218  
Lite-On Technology Corp.     4,472,000       6,476,236  
Mega Financial Holding Co. Ltd.     21,016,000       22,453,066  
Nan Ya Plastics Corp.     1,191,000       2,678,614  
Quanta Computer Inc.     4,581,000       9,380,010  
Synnex Technology International Corp.     3,235,250       4,017,418  
Taishin Financial Holding Co. Ltd.     6,322,000       2,964,791  
Taiwan Cooperative Financial Holding Co. Ltd.     21,461,226       14,848,749  
Taiwan Mobile Co. Ltd.     3,784,000       13,121,749  
WPG Holdings Ltd.     3,625,760       4,646,031  
              230,714,477  
Thailand — 0.8%                
Advanced Info Service PCL, NVDR     732,800       4,644,589  
Airports of Thailand PCL, NVDR     5,880,200       11,134,272  
Bangkok Dusit Medical Services PCL, NVDR     8,468,200       5,957,662  
Bangkok Expressway & Metro PCL, NVDR.     15,131,400       4,435,603  
BTS Group Holdings PCL, NVDR     13,230,900       4,570,331  
Bumrungrad Hospital PCL, NVDR     787,200       3,205,679  
CP ALL PCL, NVDR     1,150,600       2,397,463  
Home Product Center PCL, NVDR     8,552,300       3,469,163  
Krung Thai Bank PCL, NVDR     7,948,300       3,526,421  
              43,341,183  
United Arab Emirates — 0.2%                
Emirates Telecommunications Group Co. PJSC     1,989,211       8,557,144  
First Abu Dhabi Bank PJSC     888,721       3,464,969  
              12,022,113  


S c h e d u l e   o f   I n v e s t m e n t s 17

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® Edge MSCI Min Vol Global ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
United Kingdom — 1.1%                
Admiral Group PLC     106,497     $ 2,872,926  
AstraZeneca PLC     39,022       3,386,322  
Coca-Cola European Partners PLC     50,556       2,576,334  
Compass Group PLC     644,889       14,089,682  
Diageo PLC     118,240       4,176,680  
Direct Line Insurance Group PLC     3,166,967       12,418,669  
GlaxoSmithKline PLC     724,368       14,454,033  
RSA Insurance Group PLC     385,906       2,557,259  
              56,531,905  
United States — 51.0%                
Accenture PLC, Class A     46,470       8,392,017  
Aflac Inc.     97,674       4,185,331  
AGNC Investment Corp.     1,241,596       21,156,796  
Alleghany Corp.(a)     31,256       21,011,846  
Allstate Corp. (The)     257,035       27,052,934  
Altria Group Inc.     212,124       8,563,446  
Ameren Corp.     74,665       5,898,535  
American Electric Power Co. Inc.     211,214       18,852,962  
American Tower Corp.     61,299       13,902,613  
American Water Works Co. Inc.     106,766       13,202,684  
Amphenol Corp., Class A.     119,599       10,964,836  
Annaly Capital Management Inc.     3,227,241       28,593,355  
Anthem Inc.     24,884       6,397,428  
Aon PLC     98,959       20,583,472  
Arch Capital Group Ltd.(a)     764,755       30,919,045  
Arthur J Gallagher & Co.     75,019       7,313,602  
AT&T Inc.     725,009       25,534,817  
Automatic Data Processing Inc.     105,546       16,332,188  
AutoZone Inc.(a)     15,225       15,719,965  
AvalonBay Communities Inc.     156,131       31,318,317  
Baxter International Inc.     183,051       15,279,267  
Berkshire Hathaway Inc., Class B(a)     105,126       21,691,699  
Black Knight Inc.(a)     302,853       20,203,324  
Booz Allen Hamilton Holding Corp.     146,238       10,426,769  
Bristol-Myers Squibb Co.     114,719       6,775,304  
Broadridge Financial Solutions Inc.     138,136       14,415,873  
Brown & Brown Inc.     251,564       10,819,768  
Burlington Stores Inc.(a)     27,692       5,988,672  
Camden Property Trust     73,885       7,830,332  
Campbell Soup Co.     171,660       7,745,299  
Cboe Global Markets Inc.     91,358       10,414,812  
CH Robinson Worldwide Inc.     81,566       5,619,897  
Chevron Corp.     24,802       2,315,019  
Chubb Ltd.     167,030       24,224,361  
Church & Dwight Co. Inc.     235,746       16,389,062  
Cincinnati Financial Corp.     141,173       13,162,971  
Cisco Systems Inc.     266,870       10,656,119  
Citrix Systems Inc.     200,712       20,751,614  
Clorox Co. (The)     152,613       24,329,564  
CME Group Inc.     86,261       17,150,412  
CMS Energy Corp.     141,623       8,556,862  
Coca-Cola Co. (The)     884,419       47,307,572  
Cognizant Technology Solutions Corp., Class A     44,165       2,690,973  
Colgate-Palmolive Co.     188,737       12,752,959  
Comcast Corp., Class A     329,015       13,302,076  
Consolidated Edison Inc.     674,719       53,181,352  
Cooper Companies Inc. (The)     12,327       4,000,974  
Costco Wholesale Corp.     30,022       8,440,385  
Crown Castle International Corp.     159,323       22,829,393  
Danaher Corp.     87,535       12,655,810  
Security   Shares     Value  
             
United States (continued)                
Darden Restaurants Inc.     54,586     $ 5,322,135  
Dollar General Corp.     147,611       22,185,933  
Dominion Energy Inc.     375,807       29,380,591  
DTE Energy Co.     93,077       10,393,909  
Duke Energy Corp.     445,833       40,882,886  
Duke Realty Corp.     247,629       8,040,514  
Ecolab Inc.     33,594       6,062,037  
Eli Lilly & Co.     265,269       33,458,379  
Entergy Corp.     109,932       12,852,150  
Equity LifeStyle Properties Inc.     78,164       5,340,946  
Equity Residential     232,755       17,479,901  
Erie Indemnity Co., Class A, NVS     19,509       2,788,226  
Essex Property Trust Inc.     18,203       5,158,002  
Everest Re Group Ltd.     64,584       16,009,082  
Evergy Inc.     261,343       17,078,765  
Eversource Energy.     102,194       8,835,693  
Extra Space Storage Inc.     142,874       14,338,835  
F5 Networks Inc.(a)     44,023       5,280,559  
Federal Realty Investment Trust     21,872       2,544,588  
Fidelity National Financial Inc.     170,803       6,620,324  
Fidelity National Information Services Inc.     193,968       27,101,209  
Fiserv Inc.(a)(d)     246,924       27,003,609  
General Mills Inc.     148,269       7,265,181  
Genuine Parts Co.     50,571       4,411,814  
Gilead Sciences Inc.     42,108       2,920,611  
Hartford Financial Services Group Inc. (The)     247,736       12,374,413  
Healthpeak Properties Inc.     560,716       17,741,054  
Henry Schein Inc.(a)     51,543       3,141,030  
Hershey Co. (The)     219,755       31,642,522  
Home Depot Inc. (The)     70,415       15,339,204  
Hormel Foods Corp.     634,234       26,384,134  
Humana Inc.     18,111       5,789,725  
Intel Corp.     55,070       3,057,486  
Intercontinental Exchange Inc.     82,042       7,319,787  
International Business Machines Corp.     98,110       12,769,017  
Intuit Inc.     22,984       6,110,296  
Invitation Homes Inc.     162,700       4,667,863  
Jack Henry & Associates Inc.     167,788       25,460,151  
JM Smucker Co. (The)     93,716       9,651,811  
Johnson & Johnson     345,366       46,444,820  
Juniper Networks Inc.     120,359       2,554,018  
Kellogg Co.     328,341       19,854,780  
Kimberly-Clark Corp     140,003       18,366,994  
L3Harris Technologies Inc.     95,505       18,884,204  
Lamb Weston Holdings Inc     87,530       7,605,482  
Liberty Broadband Corp., Class C, NVS(a)     36,418       4,584,662  
Lockheed Martin Corp.     39,757       14,704,922  
Markel Corp.(a)     24,018       28,379,669  
Marsh & McLennan Companies Inc.     251,568       26,303,950  
Mastercard Inc., Class A     48,855       14,180,164  
McCormick & Co. Inc./MD, NVS     137,112       20,044,403  
McDonald’s Corp.     267,182       51,878,729  
Medtronic PLC     233,172       23,473,425  
Merck & Co. Inc.     501,089       38,363,374  
Microsoft Corp.     44,864       7,268,417  
Mid-America Apartment Communities Inc.     23,212       3,000,383  
Mondelez International Inc., Class A     102,158       5,393,942  
Motorola Solutions Inc.     239,280       39,643,910  
National Retail Properties Inc.     284,271       14,455,180  
Newmont Corp.     1,136,937       50,741,498  


18 2 0 2 0  i S h a r e s  S e m i - A n n u a l  R e p o r t  t o  S h a r e h o l d e r s

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® Edge MSCI Min Vol Global ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
United States (continued)                
NextEra Energy Inc.     211,238     $ 53,392,517  
NVR Inc.(a)     721       2,644,037  
Oracle Corp.     95,713       4,733,965  
O’Reilly Automotive Inc.(a)     28,637       10,559,035  
Palo Alto Networks Inc.(a)     19,485       3,597,321  
Paychex Inc.     421,565       32,662,856  
PepsiCo Inc.     406,506       53,670,987  
Pfizer Inc.     510,897       17,074,178  
Philip Morris International Inc.     33,468       2,740,025  
Pinnacle West Capital Corp.     125,405       11,222,493  
Procter & Gamble Co. (The)     304,570       34,486,461  
Progressive Corp. (The)     189,554       13,867,771  
Public Storage     159,404       33,334,565  
Raytheon Co.     14,103       2,659,262  
Realty Income Corp.     157,260       11,384,051  
RenaissanceRe Holdings Ltd.     101,411       17,280,434  
Republic Services Inc.     514,091       46,401,854  
Ross Stores Inc.     129,019       14,034,687  
Southern Co. (The)     704,963       42,551,567  
Starbucks Corp.     280,725       22,017,262  
Stryker Corp.     24,233       4,618,567  
Sysco Corp.     188,697       12,576,655  
Target Corp.     56,902       5,860,906  
TJX Companies Inc. (The)     401,624       24,017,115  
Travelers Companies Inc. (The)     154,654       18,529,096  
Tyler Technologies Inc.(a)     34,660       10,860,711  
Tyson Foods Inc., Class A     50,257       3,408,932  
UDR Inc.     367,063       16,510,494  
UnitedHealth Group Inc.     34,538       8,805,809  
Universal Health Services Inc., Class B     34,083       4,217,430  
Ventas Inc.     179,465       9,649,833  
VeriSign Inc.(a)     43,304       8,216,934  
Verizon Communications Inc.     878,121       47,559,033  
Visa Inc., Class A(d)     271,504       49,348,567  
WABCO Holdings Inc.(a)     36,621       4,947,497  
Walmart Inc.     359,266       38,685,763  
Walt Disney Co. (The)     61,717       7,261,005  
Waste Management Inc.     535,548       59,344,074  
WEC Energy Group Inc.     458,871       42,367,559  
Welltower Inc.     126,368       9,454,854  
Western Union Co. (The)     911,438       20,407,097  
WP Carey Inc.     241,667       18,707,442  
Security   Shares     Value  
             
United States (continued)                
WR Berkley Corp.     318,155     $ 21,360,927  
Xcel Energy Inc.     638,902       39,816,373  
Yum! Brands Inc.     324,308       28,944,489  
              2,709,928,471  
                 
Total Common Stocks — 99.5%                
(Cost: $4,812,373,731)             5,289,414,959  
                 
Warrants                
                 
Thailand — 0.0%                
BTS Group Holdings PCL (Expires 02/16/21)(a)(d)     1,323,089       36,060  
                 
Total Warrants — 0.0%                
(Cost: $0)             36,060  
                 
Short-Term Investments                
                 
Money Market Funds — 0.4%                
BlackRock Cash Funds: Institutional, SL Agency Shares, 1.74%(e)(f)(g)     10,763,973       10,771,507  
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52%(e)(f)     8,515,000       8,515,000  
              19,286,507  
                 
Total Short-Term Investments — 0.4%                
(Cost: $19,281,679)             19,286,507  
                 
Total Investments in Securities — 99.9%                
(Cost: $4,831,655,410)             5,308,737,526  
                 
Other Assets, Less Liabilities — 0.1%             4,183,396  
                 
Net Assets — 100.0%           $ 5,312,920,922  

 

(a) Non-income producing security.

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

(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) All or a portion of this security is on loan.

(e) Affiliate of the Fund.
(f) Annualized 7-day yield as of period-end.

(g) All or a portion of this security was purchased with cash collateral received from loaned securities.


 

Affiliates

 

Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940Act, were as follows:

 

Affiliated Issuer   Shares
Held at
08/31/19
    Net Activity     Shares
Held at
02/29/20
    Value at
02/29/20
    Income     Net Realized
Gain (Loss)(a)
    Change in
Unrealized
Appreciation
(Depreciation)
 
BlackRock Cash Funds: Institutional, SL Agency Shares     25,414,810       (14,650,837 )     10,763,973     $ 10,771,507     $ 88,064 (b)   $ 4,411     $ (2,254 )
BlackRock Cash Funds: Treasury, SL Agency Shares     10,157,000       (1,642,000 )     8,515,000       8,515,000       95,916              
                            $ 19,286,507     $ 183,980     $ 4,411     $ (2,254 )

 

(a) Includes realized capital gain distributions from an affiliated fund, if any.

(b) Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

 

S c h e d u l e   o f   I n v e s t m e n t s 19

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® Edge MSCI Min Vol Global ETF
February 29, 2020  

 

Futures Contracts

 

Description   Number of
Contracts
    Expiration
Date
  Notional
Amount
(000)
    Value/
Unrealized
Appreciation
(Depreciation)
 
Long Contracts                            
MSCI EAFE E-Mini     89     03/20/20   $ 8,081     $ (713,623 )
MSCI Emerging Markets E-Mini     44     03/20/20     2,220       (181,760 )
S&P 500 E-Mini Index     63     03/20/20     9,296       (748,862 )
                        $ (1,644,245 )

Derivative Financial Instruments Categorized by Risk Exposure

 

As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

    Equity
Contracts
 
Liabilities — Derivative Financial Instruments      
Futures contracts      
Unrealized depreciation on futures contracts(a)   $ 1,644,245  

 

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

 

For the six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

    Equity
Contracts
 
Net Realized Gain (Loss) from:      
Futures contracts   $ 1,880,260  
Net Change in Unrealized Appreciation (Depreciation) on:        
Futures contracts   $ (1,312,276 )

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:      
Average notional value of contracts — long   $ 18,558,417  

 

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

 

Fair Value Measurements

 

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

 

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.

 

    Level 1     Level 2     Level 3     Total  
Investments                        
Assets                        
Common Stocks   $ 5,289,410,930     $     $ 4,029     $ 5,289,414,959  
Warrants     36,060                   36,060  
Money Market Funds     19,286,507                   19,286,507  
    $ 5,308,733,497     $     $ 4,029     $ 5,308,737,526  
Derivative financial instruments(a)                                
Liabilities                                
Futures Contracts   $ (1,644,245 )   $     $     $ (1,644,245 )

 

(a) Shown at the unrealized appreciation (depreciation) on the contracts.

 

See notes to financial statements.

 

20 2 0 2 0  i S h a r e s  S e m i - A n n u a l  R e p o r t  t  o S h a r e h o l d e r s

 

 

 

 

Schedule of Investments (unaudited) iShares® Edge MSCI Multifactor Emerging Markets ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
Common Stocks                
                 
Argentina — 0.5%                
Globant SA(a)     18,758     $ 2,119,841  
                 
Brazil — 8.5%                
Banco BTG Pactual SA     180,800       2,707,401  
BB Seguridade Participacoes SA     576,300       4,068,391  
Cia. de Saneamento Basico do Estado de Sao Paulo     282,500       3,678,671  
Hypera SA     316,400       2,405,444  
IRB Brasil Resseguros S/A     576,300       4,247,221  
JBS SA     892,700       4,491,547  
Lojas Renner SA     316,400       3,737,905  
Notre Dame Intermedica Participacoes SA     282,500       3,959,189  
Petrobras Distribuidora SA     576,300       3,333,909  
Porto Seguro SA     84,100       1,136,706  
Sul America SA     237,378       2,844,337  
TIM Participacoes SA     700,600       2,504,777  
              39,115,498  
Chile — 0.2%                
Cia. Cervecerias Unidas SA     120,345       901,344  
                 
China — 40.5%                
51job Inc., ADR(a)(b)     20,905       1,563,067  
Agile Group Holdings Ltd.(b)     1,130,000       1,586,311  
Alibaba Group Holding Ltd., ADR(a)     86,784       18,051,072  
Angang Steel Co. Ltd., Class A     194,860       79,726  
Anhui Conch Cement Co. Ltd., Class A     56,539       443,725  
Anhui Conch Cement Co. Ltd., Class H     1,017,000       7,458,126  
ANTA Sports Products Ltd.     113,000       908,431  
BAIC Motor Corp. Ltd., Class H(c)     1,356,000       664,685  
Bank of Chengdu Co. Ltd., Class A     180,800       211,315  
Beijing Capital International Airport Co. Ltd., Class H     1,356,000       1,057,927  
Beijing Enterprises Holdings Ltd.     452,000       1,908,213  
Beijing Shunxin Agriculture Co. Ltd., Class A     33,900       266,731  
Beijing Tiantan Biological Products Corp. Ltd., Class A     45,200       223,924  
BOC Aviation Ltd.(c)     169,500       1,471,398  
Bosideng International Holdings Ltd.     2,712,000       789,965  
BYD Electronic International Co. Ltd.     565,000       1,058,507  
Centre Testing International Group Co. Ltd., Class A     90,400       210,539  
Changjiang Securities Co. Ltd., Class A     271,200       261,493  
Chengdu Xingrong Environment Co. Ltd., Class A     179,399       116,003  
China Agri-Industries Holdings Ltd.     1,921,000       1,042,702  
China Aoyuan Group Ltd.     1,017,000       1,464,220  
China Cinda Asset Management Co. Ltd., Class H     7,345,000       1,536,286  
China CITIC Bank Corp. Ltd., Class H     7,345,000       3,817,151  
China Communications Services Corp. Ltd., Class H     2,034,000       1,573,841  
China Conch Venture Holdings Ltd.     1,356,000       6,594,645  
China Education Group Holdings Ltd.     226,000       321,322  
China Everbright Ltd.     768,000       1,281,142  
China Lesso Group Holdings Ltd.     904,000       1,357,209  
China Longyuan Power Group Corp. Ltd., Class H     2,599,000       1,360,689  
China Medical System Holdings Ltd.     1,130,000       1,392,010  
China Minsheng Banking Corp. Ltd., Class H     5,819,500       3,927,932  
China Mobile Ltd.     1,525,500       11,999,557  
China Power International Development Ltd.     3,729,000       693,830  
China Reinsurance Group Corp., Class H     4,895,000       665,811  
China Resources Cement Holdings Ltd.     2,034,000       2,560,428  
China Resources Double Crane Pharmaceutical Co. Ltd., Class A     43,797       84,709  
China Resources Power Holdings Co. Ltd.     1,582,000       1,881,823  
Security   Shares     Value  
             
China (continued)                
China Resources Sanjiu Medical & Pharmaceutical Co. Ltd., Class A     45,200     $ 212,091  
China Telecom Corp. Ltd., Class H     11,300,000       4,248,529  
China Zhongwang Holdings Ltd.(b)     1,401,200       471,079  
Chinese Universe Publishing and Media Group Co. Ltd., Class A     67,800       137,924  
Chongqing Brewery Co. Ltd., Class A     21,197       138,156  
Chongqing Rural Commercial Bank Co. Ltd., Class H     1,921,000       867,686  
COSCO SHIPPING Ports Ltd.     1,356,000       903,066  
Country Garden Services Holdings Co. Ltd.     1,017,000       3,967,227  
CSPC Pharmaceutical Group Ltd.     3,164,000       7,210,609  
Daqin Railway Co. Ltd., Class A     757,128       766,854  
Dongfeng Motor Group Co. Ltd., Class H     2,196,000       1,735,824  
Fujian Sunner Development Co. Ltd., Class A     56,500       175,315  
Guangzhou Baiyun International Airport Co. Ltd., Class A     100,299       222,115  
Guangzhou R&F Properties Co. Ltd., Class H     768,400       1,191,096  
Henan Shuanghui Investment & Development Co. Ltd., Class A     67,870       330,116  
Hithink RoyalFlush Information Network Co. Ltd., Class A     22,600       399,255  
Hua Hong Semiconductor Ltd.(b)(c)     339,000       737,765  
Huaxin Cement Co. Ltd., Class A     67,800       236,566  
Hubei Jumpcan Pharmaceutical Co. Ltd., Class A     45,200       150,016  
Hunan Valin Steel Co. Ltd., Class A(a)     225,320       127,968  
Hundsun Technologies Inc., Class A     22,600       310,992  
Inner Mongolia MengDian HuaNeng Thermal Power Corp. Ltd., Class A     316,400       127,643  
Inner Mongolia Yitai Coal Co. Ltd., Class B     937,900       643,399  
Jafron Biomedical Co. Ltd., Class A     21,988       284,106  
Jiangsu Expressway Co. Ltd., Class H     904,000       1,045,167  
Jiangsu King’s Luck Brewery JSC Ltd., Class A     56,500       238,441  
Jilin Aodong Pharmaceutical Group Co. Ltd., Class A     79,100       185,806  
Joincare Pharmaceutical Group Industry Co. Ltd., Class A     90,400       148,076  
Kingboard Holdings Ltd.     537,000       1,419,496  
Kingboard Laminates Holdings Ltd.     904,000       901,326  
Kingdee International Software Group Co. Ltd.     339,000       433,698  
Lee & Man Paper Manufacturing Ltd.     1,017,000       793,445  
Legend Holdings Corp., Class H(c)     316,400       544,044  
Li Ning Co. Ltd.     1,638,500       4,310,155  
Luye Pharma Group Ltd.(c)     904,000       551,004  
Maanshan Iron & Steel Co. Ltd., Class A     384,200       152,247  
Maanshan Iron & Steel Co. Ltd., Class H(b)     678,000       247,952  
Nanjing Iron & Steel Co. Ltd., Class A     271,200       119,495  
New Hope Liuhe Co. Ltd., Class A     113,000       391,205  
Nexteer Automotive Group Ltd.     678,000       499,383  
Noah Holdings Ltd.(a)(b)     27,007       766,459  
PICC Property & Casualty Co. Ltd., Class H     5,651,000       5,851,826  
Shandong Buchang Pharmaceuticals Co. Ltd., Class A     56,500       172,162  
Shandong Hualu Hengsheng Chemical Co. Ltd., Class A     79,100       191,011  
Shandong Weigao Group Medical Polymer Co. Ltd., Class H     1,808,000       2,329,296  
Shanghai Baosight Software Co. Ltd., Class A     45,200       293,501  
Shanghai Industrial Holdings Ltd.     399,000       704,505  
Shanghai Mechanical and Electrical Industry Co. Ltd., Class A     45,200       96,088  
Shanxi Taigang Stainless Steel Co. Ltd., Class A     316,400       159,327  
Shenzhen Airport Co. Ltd., Class A     101,700       117,410  
Shenzhen Expressway Co. Ltd., Class H     678,000       820,416  
Shenzhen International Holdings Ltd.     791,000       1,514,390  
Shenzhen Investment Ltd.     2,486,000       835,786  
Shimao Property Holdings Ltd.     960,500       3,438,699  


S c h e d u l e   o f   I n v e s t m e n t s 21

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® Edge MSCI Multifactor Emerging Markets ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
China (continued)                
Shui On Land Ltd.     3,051,000     $ 606,829  
Sino Biopharmaceutical Ltd.     5,763,000       8,341,617  
Sinolink Securities Co. Ltd., Class A     146,900       210,151  
Sinopec Engineering Group Co. Ltd., Class H     1,186,500       587,689  
Sinotruk Hong Kong Ltd.     565,000       1,080,257  
SSY Group Ltd.     1,356,000       1,136,228  
Sun Art Retail Group Ltd.     1,977,500       2,527,367  
TangShan Port Group Co. Ltd., Class A     293,800       97,090  
Tencent Holdings Ltd.     237,300       11,753,781  
Topchoice Medical Corp., Class A(a)     11,300       168,267  
Towngas China Co. Ltd.     830,000       481,403  
Uni-President China Holdings Ltd.     1,130,000       1,165,808  
Weichai Power Co. Ltd., Class H     1,582,000       3,114,041  
Weifu High-Technology Group Co. Ltd., Class A     45,200       126,867  
Wuhan Guide Infrared Co. Ltd., Class A     43,796       297,165  
WUS Printed Circuit Kunshan Co. Ltd., Class A     79,100       295,343  
Yuexiu Property Co. Ltd.     5,650,000       1,152,758  
Yum China Holdings Inc.     253,685       11,108,866  
Yuzhou Properties Co. Ltd.     1,356,000       664,685  
Zhejiang Expressway Co. Ltd., Class H     1,130,000       854,056  
Zhejiang Semir Garment Co. Ltd., Class A     90,400       100,485  
Zhejiang Wolwo Bio-Pharmaceutical Co. Ltd., Class A     22,600       139,605  
Zhongsheng Group Holdings Ltd.     452,000       1,719,712  
Zoomlion Heavy Industry Science and Technology Co. Ltd., Class H     1,084,800       899,238  
              185,382,986  
Czech Republic — 0.3%                
Moneta Money Bank AS(c)     414,145       1,365,743  
                 
India — 6.0%                
Bharti Infratel Ltd.     269,731       801,522  
Colgate-Palmolive India Ltd.     54,127       964,074  
Divi’s Laboratories Ltd.     65,879       1,923,355  
Dr. Reddy’s Laboratories Ltd.     95,146       3,859,104  
HDFC Asset Management Co. Ltd.(c)     35,218       1,533,015  
Hindustan Petroleum Corp. Ltd.     510,082       1,396,289  
Infosys Ltd.     1,059,714       10,744,348  
Petronet LNG Ltd.     478,668       1,629,000  
REC Ltd.     559,802       913,772  
Tech Mahindra Ltd.     378,550       3,904,703  
              27,669,182  
Indonesia — 1.1%                
Adaro Energy Tbk PT     11,944,100       961,522  
Bukit Asam Tbk PT     2,542,500       396,947  
Indofood Sukses Makmur Tbk PT     3,582,100       1,622,837  
Kalbe Farma Tbk PT     17,266,400       1,468,201  
Pakuwon Jati Tbk PT     14,509,200       535,973  
              4,985,480  
Malaysia — 0.7%                
AirAsia Group Bhd     1,243,000       294,899  
AMMB Holdings Bhd     1,356,000       1,190,320  
Nestle Malaysia Bhd     50,000       1,696,323  
              3,181,542  
Mexico — 0.2%                
Megacable Holdings SAB de CV, CPO     259,900       865,174  
                 
Philippines — 0.7%                
Altus San Nicolas Corp.     30,439       3,102  
Megaworld Corp.     9,040,600       603,002  
PLDT Inc.     71,190       1,382,601  
Security   Shares     Value  
             
Philippines (continued)                
Robinsons Land Corp.     1,649,800     $ 689,372  
Security Bank Corp.     179,670       544,209  
              3,222,286  
Poland — 0.2%                
PGE Polska Grupa Energetyczna SA(a)     689,413       781,616  
                 
Qatar — 1.8%                
Barwa Real Estate Co.     1,734,889       1,467,317  
Commercial Bank PSQC (The)     1,665,846       2,056,572  
Mesaieed Petrochemical Holding Co.     1,025,927       495,428  
Ooredoo QPSC     688,961       1,188,713  
Qatar Fuel QSC     323,327       1,702,510  
Qatar International Islamic Bank QSC     635,060       1,472,733  
              8,383,273  
Russia — 0.7%                
Inter RAO UES PJSC     29,719,000       2,301,453  
Magnitogorsk Iron & Steel Works PJSC     1,853,200       1,102,682  
              3,404,135  
Saudi Arabia — 2.6%                
Advanced Petrochemical Co.     45,856       548,218  
Arab National Bank     490,872       3,310,426  
Bank Al-Jazira     173,568       644,027  
Bupa Arabia for Cooperative Insurance Co.     22,374       578,509  
Dar Al Arkan Real Estate Development Co.(a)     224,757       561,368  
Jarir Marketing Co.     24,973       1,010,503  
Riyad Bank     510,534       2,983,048  
Saudi Airlines Catering Co.     32,883       799,395  
Saudi Cement Co.     61,246       995,870  
Saudi Industrial Investment Group     97,406       547,333  
              11,978,697  
South Africa — 6.1%                
Anglo American Platinum Ltd.     44,183       2,941,526  
AngloGold Ashanti Ltd.     341,034       6,021,614  
Exxaro Resources Ltd.     63,167       449,716  
Impala Platinum Holdings Ltd.(a)     656,756       5,203,867  
Investec Ltd.     237,526       1,190,838  
Kumba Iron Ore Ltd.     52,545       937,470  
Liberty Holdings Ltd.     108,028       643,505  
Momentum Metropolitan Holdings     747,043       845,270  
Mr. Price Group Ltd.     210,858       2,023,534  
Old Mutual Ltd.     3,970,933       3,952,885  
Reinet Investments SCA     119,780       2,454,533  
RMB Holdings Ltd.     213,909       952,641  
Telkom SA SOC Ltd.     231,650       384,034  
              28,001,433  
South Korea — 9.5%                
BNK Financial Group Inc.     230,633       1,171,680  
Coway Co. Ltd.     42,375       2,403,983  
Daelim Industrial Co. Ltd.(a)     22,713       1,355,861  
DB Insurance Co. Ltd.     40,906       1,458,403  
Hana Financial Group Inc.     108,141       2,795,906  
Hankook Tire & Technology Co. Ltd.     60,681       1,274,076  
Hyundai Department Store Co. Ltd.     11,639       679,461  
Hyundai Marine & Fire Insurance Co. Ltd.     52,319       973,577  
Kia Motors Corp.     216,960       6,475,751  
LG Uplus Corp.     90,739       986,212  
Samsung Electronics Co. Ltd.     181,139       8,083,766  
SK Hynix Inc.     178,314       12,905,558  


22 2 0 2 0  i S h a r e s  S e m i - A n n u a l  R e p o r t  t o  S h a r e h o l d e r s

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® Edge MSCI Multifactor Emerging Markets ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
South Korea (continued)                
SK Telecom Co. Ltd.     16,611     $ 2,906,412  
              43,470,646  
Taiwan — 14.5%                
Accton Technology Corp.     452,000       2,440,661  
Asia Cement Corp.     1,808,000       2,648,155  
Chicony Electronics Co. Ltd.     452,169       1,246,920  
Compal Electronics Inc.     3,277,000       1,996,752  
Feng TAY Enterprise Co. Ltd.     268,968       1,518,966  
Formosa Taffeta Co. Ltd.     678,000       750,111  
Foxconn Technology Co. Ltd.     791,000       1,554,335  
Inventec Corp.     2,034,000       1,541,647  
Lite-On Technology Corp.     1,752,718       2,538,241  
Micro-Star International Co. Ltd.     565,000       1,694,282  
Nanya Technology Corp.     1,017,000       2,596,281  
Novatek Microelectronics Corp.     477,000       3,079,757  
Phison Electronics Corp.     113,000       1,244,588  
Pou Chen Corp.     1,808,000       2,036,123  
Powertech Technology Inc.     610,000       2,054,856  
Realtek Semiconductor Corp.     452,000       3,358,708  
Ruentex Development Co. Ltd.     452,000       612,778  
Ruentex Industries Ltd.     281,400       628,235  
Standard Foods Corp.     339,000       760,188  
Synnex Technology International Corp.     1,130,000       1,403,193  
Taiwan Business Bank     3,277,104       1,298,742  
Taiwan Semiconductor Manufacturing Co. Ltd.     1,062,000       11,083,142  
United Microelectronics Corp.     9,040,000       4,567,843  
Walsin Technology Corp.     226,000       1,589,788  
Win Semiconductors Corp.     280,000       2,529,104  
Winbond Electronics Corp.     2,373,000       1,253,918  
Wistron Corp.     2,260,063       2,019,013  
WPG Holdings Ltd.     1,243,160       1,592,979  
Yageo Corp.     226,358       3,065,004  
Zhen Ding Technology Holding Ltd.     452,000       1,724,137  
              66,428,447  
Thailand — 0.4%                
Krung Thai Bank PCL, NVDR     3,017,100       1,338,596  
TMB Bank PCL, NVDR(b)     9,474,089       327,262  
              1,665,858  
United Arab Emirates — 1.4%                
Aldar Properties PJSC     3,137,784       1,811,131  
Dubai Islamic Bank PJSC     1,324,812       1,947,775  
Emaar Properties PJSC     2,869,070       2,734,010  
              6,492,916  
                 
Total Common Stocks — 95.9%                
(Cost: $445,093,886)             439,416,097  
Security   Shares     Value  
             
Preferred Stocks                
                 
Brazil — 2.9%                
Itausa-Investimentos Itau SA, Preference Shares, NVS     3,288,338     $ 8,753,547  
Telefonica Brasil SA, Preference Shares, NVS     372,900       4,412,000  
            13,165,547  
Russia — 0.6%                
Surgutneftegas PJSC, Preference Shares, NVS     5,717,800       2,788,278  
                 
Total Preferred Stocks — 3.5%                
(Cost: $17,123,550)             15,953,825  
                 
Short-Term Investments                
                 
Money Market Funds — 0.8%                
BlackRock Cash Funds: Institutional, SL Agency Shares, 1.74%(d)(e)(f)     2,735,981       2,737,896  
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52%(d)(e)     785,000       785,000  
              3,522,896  
                 
Total Short-Term Investments — 0.8%                
(Cost: $3,521,815)             3,522,896  
                 
Total Investments in Securities — 100.2%          
(Cost: $465,739,251)             458,892,818  
                 
Other Assets, Less Liabilities — (0.2)%             (966,229 )
                 
Net Assets — 100.0%           $ 457,926,589  

 

(a) Non-income producing security.

(b) All or a portion of this 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) Affiliate of the Fund.

(e) Annualized 7-day yield as of period-end.

(f) All or a portion of this security was purchased with cash collateral received from loaned securities.



S c h e d u l e  o f  I n v e s t m e n t s 23

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® Edge MSCI Multifactor Emerging Markets ETF
February 29, 2020  

 

Affiliates

 

Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940Act, were as follows:

 

Affiliated Issuer   Shares
Held at
08/31/19
    Net
Activity
    Shares
Held at
02/29/20
    Value at
02/29/20
    Income     Net Realized
Gain (Loss)
(a)    Change in
Unrealized
Appreciation
(Depreciation)
 
BlackRock Cash Funds: Institutional, SL Agency Shares     3,212,175       (476,194 )     2,735,981     $ 2,737,896     $ 21,527 (b)   $ (537 )   $ 922  
BlackRock Cash Funds: Treasury, SL Agency Shares     300,000       485,000       785,000       785,000       6,149              
                            $ 3,522,896     $ 27,676     $ (537 )   $ 922  

 

(a) Includes realized capital gain distributions from an affiliated fund, if any.

(b) Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

 

Futures Contracts

 

Description   Number of
Contracts
    Expiration
Date
  Notional
Amount
(000)
    Value/
Unrealized
Appreciation
(Depreciation)
 
Long Contracts                            
MSCI Emerging Markets E-Mini     45     03/20/20   $ 2,270     $ (133,194 )

 

Derivative Financial Instruments Categorized by Risk Exposure

 

As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

    Equity
Contracts
 
Liabilities — Derivative Financial Instruments      
Futures contracts      
Unrealized depreciation on futures contracts(a)   $ 133,194  

 

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

 

For the six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

    Equity
Contracts
 
Net Realized Gain (Loss) from:      
Futures contracts   $ 68,120  
Net Change in Unrealized Appreciation (Depreciation) on:        
Futures contracts   $ (64,397 )

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:      
Average notional value of contracts — long   $ 1,785,100  

 

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

 

Fair Value Measurements

 

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

 

24 2 0 2 0  i S h a r e s  S e m i - A n n u a l  R e p o r t  t o  S h a r e h o l d e r s

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® Edge MSCI Multifactor Emerging Markets ETF
February 29, 2020  

 

Fair Value Measurements (continued)

 

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.

 

    Level 1     Level 2     Level 3     Total  
Investments                        
Assets                        
Common Stocks   $ 439,412,995     $ 3,102     $     $ 439,416,097  
Preferred Stocks     15,953,825                   15,953,825  
Money Market Funds     3,522,896                   3,522,896  
    $ 458,889,716     $ 3,102     $     $ 458,892,818  
Derivative financial instruments(a)                                
Liabilities                                
Futures Contracts   $ (133,194 )   $     $     $ (133,194 )

 

(a) Shown at the unrealized appreciation (depreciation) on the contracts.

 

See notes to financial statements

 

S c h e d u l e  o f  I n v e s t m e n t s 25

 

 

 

 

Schedule of Investments (unaudited) iShares® ESG MSCI EM ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
Common Stocks                
                 
Argentina — 0.1%                
Globant SA(a)     18,971     $ 2,143,913  
                 
Brazil — 4.3%                
Atacadao SA     1,250,000       5,732,382  
B3 SA - Brasil, Bolsa, Balcao     2,048,500       21,794,244  
Banco Bradesco SA     416,242       2,517,758  
Banco do Brasil SA     566,400       5,882,882  
Banco Santander Brasil SA     876,200       7,741,144  
Cielo SA     1,277,400       1,939,466  
Cosan SA     273,700       4,438,870  
Energisa SA     150,900       1,806,124  
Klabin SA     526,600       2,246,861  
Localiza Rent a Car SA     1,097,722       12,053,489  
Lojas Renner SA     449,810       5,313,992  
Natura & Co. Holding SA     764,600       7,712,687  
Petrobras Distribuidora SA     388,100       2,245,168  
Ultrapar Participacoes SA     1,631,700       6,900,543  
              88,325,610  
Chile — 0.9%                
Empresas COPEC SA     883,078       6,834,643  
Enel Americas SA     68,787,097       11,487,855  
              18,322,498  
China — 33.2%                
3SBio Inc.(a)(b)     1,698,500       1,761,041  
AAC Technologies Holdings Inc.     568,000       3,720,803  
Aisino Corp., Class A     812,595       2,743,447  
Alibaba Group Holding Ltd., ADR(a)     637,889       132,680,912  
Alibaba Health Information Technology Ltd.(a)     2,468,000       4,731,385  
Alibaba Pictures Group Ltd.(a)     14,680,000       1,977,916  
A-Living Services Co. Ltd., Class H(b)     840,000       3,761,813  
Autohome Inc., ADR(a)     27,979       2,173,129  
BAIC Motor Corp. Ltd., Class H(b)     11,085,500       5,433,894  
Baidu Inc., ADR(a)     32,842       3,940,383  
BBMG Corp., Class H     7,500,000       2,107,647  
Beijing Oriental Yuhong Waterproof Technology Co. Ltd., Class A     637,995       2,834,844  
BOC Aviation Ltd.(b)     514,000       4,461,937  
BOE Technology Group Co. Ltd., Class A     4,322,100       3,029,712  
Brilliance China Automotive Holdings Ltd.     2,404,000       2,035,968  
BYD Co. Ltd., Class A     394,916       3,693,122  
BYD Co. Ltd., Class H(c)     803,000       4,915,033  
BYD Electronic International Co. Ltd.(c)     1,154,000       2,161,978  
Caitong Securities Co. Ltd., Class A     1,479,887       2,349,968  
China Agri-Industries Holdings Ltd.     4,198,000       2,278,638  
China CITIC Bank Corp. Ltd., Class H     4,466,000       2,320,953  
China Construction Bank Corp., Class H     29,978,000       24,234,594  
China Eastern Airlines Corp. Ltd., Class A(a)     3,025,400       1,964,939  
China Everbright Bank Co. Ltd., Class H     10,042,000       4,020,382  
China Everbright International Ltd.     3,125,666       2,081,625  
China International Capital Corp. Ltd., Class H(b)     1,945,600       3,590,087  
China Lesso Group Holdings Ltd.     2,757,000       4,139,188  
China Life Insurance Co. Ltd., Class H     1,527,000       3,577,934  
China Mengniu Dairy Co. Ltd.     617,000       2,212,888  
China Merchants Bank Co. Ltd., Class H     3,007,500       14,182,589  
China Merchants Shekou Industrial Zone Holdings Co. Ltd., Class A     2,084,271       5,170,275  
China Minsheng Banking Corp. Ltd., Class H     11,674,500       7,879,825  
China Mobile Ltd.     1,299,000       10,217,912  
Security   Shares     Value  
             
China (continued)                
China Molybdenum Co. Ltd., Class A     3,116,000     $ 1,814,271  
China Molybdenum Co. Ltd., Class H     12,054,000       4,501,080  
China Pacific Insurance Group Co. Ltd., Class H     1,035,200       3,407,251  
China Vanke Co. Ltd., Class H     732,000       2,817,895  
Country Garden Services Holdings Co. Ltd.     1,998,000       7,794,022  
CSPC Pharmaceutical Group Ltd.     1,572,000       3,582,515  
Eve Energy Co. Ltd., Class A(a)     349,924       3,331,441  
Everbright Securities Co. Ltd., Class A     1,312,597       2,230,788  
Fosun International Ltd.     5,346,500       6,812,576  
Founder Securities Co. Ltd., Class A     2,224,666       2,329,627  
Geely Automobile Holdings Ltd.     6,474,000       11,514,059  
Genscript Biotech Corp.(a)     984,000       2,048,040  
Glodon Co. Ltd., Class A     479,685       3,068,112  
Greentown Service Group Co. Ltd.     2,524,000       3,154,575  
Guangzhou Automobile Group Co. Ltd., Class H     2,317,200       2,583,901  
Huadong Medicine Co. Ltd., Class A     735,312       2,030,203  
Huaxia Bank Co. Ltd., Class A     4,883,332       4,855,248  
Hutchison China MediTech Ltd., ADR(a)     82,467       1,923,130  
Industrial & Commercial Bank of China Ltd., Class H     14,437,000       9,874,081  
Industrial Bank Co. Ltd., Class A     1,162,897       2,876,383  
JD.com Inc., ADR(a)     173,708       6,689,495  
Kingboard Laminates Holdings Ltd.     2,048,500       2,042,441  
Kingdee International Software Group Co. Ltd.     5,953,000       7,615,941  
Legend Holdings Corp., Class H(b)     2,686,000       4,618,525  
Lenovo Group Ltd.     8,260,000       5,098,209  
Meituan Dianping, Class B(a)     812,500       10,311,271  
NetEase Inc., ADR     21,875       6,971,781  
NIO Inc., ADR(a)(c)     823,971       3,403,000  
Orient Securities Co. Ltd., Class A     1,500,097       2,139,562  
Pinduoduo Inc., ADR(a)     111,599       3,993,012  
Ping An Healthcare and Technology Co. Ltd.(a)(b)     211,100       2,062,769  
Ping An Insurance Group Co. of China Ltd., Class A     206,700       2,298,178  
Ping An Insurance Group Co. of China Ltd., Class H     2,506,000       27,863,917  
Shanghai Pharmaceuticals Holding Co. Ltd., Class A     881,896       2,355,440  
Shanghai Pharmaceuticals Holding Co. Ltd., Class H     3,361,900       6,151,724  
Shanghai Pudong Development Bank Co. Ltd., Class A     1,354,792       2,102,872  
Shenzhen Inovance Technology Co. Ltd., Class A     704,700       2,854,004  
Shenzhou International Group Holdings Ltd.     437,500       5,375,383  
Shui On Land Ltd.     15,398,000       3,062,588  
Sino Biopharmaceutical Ltd.     2,231,000       3,229,247  
Sinopharm Group Co. Ltd., Class H.     1,000,000       3,086,083  
Sinotrans Ltd., Class H.     13,135,000       3,708,048  
SOHO China Ltd.     14,375,000       5,201,750  
Sunac China Holdings Ltd.     816,000       4,450,119  
Suning.com Co. Ltd., Class A.     4,087,271       5,426,150  
Sunny Optical Technology Group Co. Ltd.     304,300       4,732,571  
TAL Education Group, ADR(a)(c).     84,260       4,582,901  
TCL Technology Group Corp., Class A     5,859,600       4,928,965  
Tencent Holdings Ltd.     2,242,600       111,078,923  
Towngas China Co. Ltd.     3,386,000       1,963,893  
TravelSky Technology Ltd., Class H.     1,050,000       2,053,368  
Trip.com Group Ltd., ADR(a) .     142,000       4,311,120  
Unisplendour Corp. Ltd., Class A     724,030       4,704,507  
Vipshop Holdings Ltd., ADR(a)(c)     267,750       3,435,233  
Wanda Film Holding Co. Ltd., Class A(a).     609,100       1,411,608  
WuXi AppTec Co. Ltd., Class A     151,064       2,290,748  
WuXi AppTec Co. Ltd., Class H(b)     370,300       5,459,669  
Wuxi Biologics Cayman Inc.(a)(b) .     641,000       9,376,817  
Xinjiang Goldwind Science & Technology Co. Ltd., Class A     1,344,871       2,023,983  


26 2 0 2 0  i S h a r e s  S e m i - A n n u a l  R e p o r t  t o  S h a r e h o l d e r s

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® ESG MSCI EM ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
China (continued)                
Xinjiang Goldwind Science & Technology Co. Ltd.,                
Class H     2,552,136     $ 2,534,763  
Xinyi Solar Holdings Ltd.     3,822,000       3,025,996  
Yum China Holdings Inc.     77,760       3,405,110  
Yuzhou Properties Co. Ltd.     12,844,000       6,295,876  
Zoomlion Heavy Industry Science and Technology Co. Ltd., Class H     3,100,400       2,570,057  
              673,233,576  
Colombia — 0.2%                
Bancolombia SA     200,625       2,205,876  
Interconexion Electrica SA ESP     357,275       1,873,471  
              4,079,347  
Czech Republic — 0.2%                
Komercni Banka AS     125,625       3,828,693  
                 
Greece — 0.2%                
Alpha Bank AE(a)     1,356,698       1,917,970  
OPAP SA     191,034       2,035,460  
              3,953,430  
Hungary — 0.8%                
MOL Hungarian Oil & Gas PLC     2,201,366       16,930,106  
                 
India — 9.1%                
Ashok Leyland Ltd.     1,917,797       1,857,540  
Asian Paints Ltd.     572,643       14,266,581  
Axis Bank Ltd.     525,000       5,072,678  
Axis Bank Ltd., GDR(d)     66,880       3,156,736  
Bajaj Finance Ltd.     63,901       3,954,305  
Bandhan Bank Ltd.(b)     360,597       1,916,222  
Bharat Petroleum Corp. Ltd.     342,753       2,024,911  
Bharti Airtel Ltd.(a)     418,373       3,034,860  
Dabur India Ltd.     1,386,769       9,533,046  
Eicher Motors Ltd.     9,080       2,088,881  
HCL Technologies Ltd.     678,813       5,026,137  
Hero MotoCorp Ltd.     72,946       2,073,883  
Hindalco Industries Ltd.     28,430       61,416  
Hindustan Unilever Ltd.     423,685       12,767,644  
Housing Development Finance Corp. Ltd.     798,172       24,063,778  
ICICI Bank Ltd.     894,529       6,163,502  
Indian Oil Corp. Ltd.     2,131,916       3,123,984  
Infosys Ltd.     1,945,625       19,726,523  
Mahindra & Mahindra Ltd.     332,592       2,106,366  
Mahindra & Mahindra Ltd., GDR     618,125       3,850,919  
Marico Ltd.     1,089,146       4,508,711  
Nestle India Ltd.     35,992       7,869,365  
Power Grid Corp. of India Ltd.     1,077,225       2,709,202  
REC Ltd.     1,113,555       1,817,671  
Reliance Industries Ltd.     715,734       13,177,122  
Reliance Industries Ltd., GDR(b)     78,416       2,850,422  
Tata Consultancy Services Ltd.     538,125       14,914,341  
Titan Co. Ltd.     321,455       5,587,907  
UPL Ltd.     335,000       2,412,436  
Wipro Ltd.     867,500       2,661,972  
              184,379,061  
Indonesia — 1.5%                
Astra International Tbk PT     1,421,700       547,475  
Bank Central Asia Tbk PT     5,484,700       12,022,569  
Bank Negara Indonesia Persero Tbk PT     8,326,200       4,076,777  
Bank Rakyat Indonesia Persero Tbk PT     30,406,500       8,879,821  
Kalbe Farma Tbk PT     22,187,600       1,886,661  
Security   Shares     Value  
             
Indonesia (continued)                
Unilever Indonesia Tbk PT     4,936,500     $ 2,348,257  
United Tractors Tbk PT     107,600       124,493  
              29,886,053  
Malaysia — 3.2%                
AMMB Holdings Bhd     2,970,300       2,607,381  
Axiata Group Bhd     2,812,500       2,789,146  
Malayan Banking Bhd     2,769,600       5,532,629  
Maxis Bhd(c)     6,375,000       8,212,633  
Nestle Malaysia Bhd     281,300       9,543,511  
Petronas Dagangan Bhd     664,900       3,602,922  
Public Bank Bhd     4,493,400       18,229,452  
RHB Bank Bhd     6,312,500       8,311,833  
Sime Darby Plantation Bhd     3,125,000       3,677,343  
Telekom Malaysia Bhd     2,375,000       2,084,816  
            64,591,666  
Mexico — 2.2%                
Alsea SAB de CV(a)     958,000       1,931,824  
Arca Continental SAB de CV     375,000       2,045,627  
Cemex SAB de CV, CPO, NVS     12,562,500       4,023,249  
Coca-Cola Femsa SAB de CV .     1,063,100       5,852,380  
Fomento Economico Mexicano SAB de CV     328,600       2,642,710  
Grupo Financiero Banorte SAB de CV, Class O     1,437,500       7,743,540  
Infraestructura Energetica Nova SAB de CV     2,609,500       11,286,106  
Wal-Mart de Mexico SAB de CV     3,250,000       9,062,208  
              44,587,644  
Philippines — 0.6%                
BDO Unibank Inc.     2,962,500       8,078,224  
Globe Telecom Inc.     57,850       2,018,934  
SM Prime Holdings Inc.     2,892,900       2,173,577  
            12,270,735  
Poland — 0.6%                
Bank Polska Kasa Opieki SA     99,375       2,219,032  
KGHM Polska Miedz SA(a)     211,059       3,776,118  
Polski Koncern Naftowy ORLEN SA     268,542       3,994,040  
Santander Bank Polska SA     33,566       2,135,175  
            12,124,365  
Qatar — 0.7%                
Qatar Fuel QSC     147,828       778,403  
Qatar National Bank QPSC     2,526,477       12,986,338  
              13,764,741  
Russia — 3.7%                
Gazprom PJSC     3,396,960       10,243,957  
Gazprom PJSC, ADR     342,500       2,065,275  
Inter RAO UES PJSC     21,202,635       1,641,942  
LUKOIL PJSC     236,191       20,032,301  
Novatek PJSC, GDR(d)     56,875       8,150,187  
Novolipetsk Steel PJSC     1,918,670       3,567,241  
Polymetal International PLC     476,851       7,274,107  
Polyus PJSC     40,472       5,097,545  
Rosneft Oil Co. PJSC     41,720       250,444  
Rosneft Oil Co. PJSC, GDR(d)     347,194       2,100,524  
Sberbank of Russia PJSC     4,413,510       15,326,439  
              75,749,962  
Saudi Arabia — 1.7%                
Almarai Co. JSC     256,875       3,136,046  
Banque Saudi Fransi     562,500       5,105,458  
National Commercial Bank     454,375       5,365,537  
Samba Financial Group     281,669       2,015,944  


S c h e d u l e  o f  I n v e s t m e n t s 27

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® ESG MSCI EM ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
Saudi Arabia (continued)                
Saudi Arabian Mining Co.(a)     397,500     $ 4,036,985  
Saudi Basic Industries Corp.     625,000       13,111,422  
Saudi British Bank (The)     323,750       2,433,626  
              35,205,018  
South Africa — 5.1%                
Absa Group Ltd.     561,250       4,720,044  
Bidvest Group Ltd. (The)     153,125       1,752,058  
Clicks Group Ltd.     290,000       4,341,290  
FirstRand Ltd.     713,750       2,500,836  
Gold Fields Ltd.     358,082       2,099,121  
Growthpoint Properties Ltd.     3,410,000       3,815,021  
Impala Platinum Holdings Ltd.(a)     208,148       1,649,280  
Investec Ltd.     2,054,375       10,299,625  
Kumba Iron Ore Ltd.     201,875       3,601,707  
MultiChoice Group Ltd.(a)     312,072       1,793,697  
Naspers Ltd., Class N     161,875       24,499,550  
Nedbank Group Ltd.     216,102       2,426,074  
NEPI Rockcastle PLC     541,210       3,921,936  
Old Mutual Ltd.     10,762,576       10,713,660  
Standard Bank Group Ltd.     841,250       7,941,113  
Vodacom Group Ltd.     2,249,932       15,685,093  
Woolworths Holdings Ltd.     1,235,361       2,807,371  
              104,567,476  
South Korea — 10.6%                
Amorepacific Corp.(a)     28,125       3,728,386  
AMOREPACIFIC Group(a)     51,875       2,648,209  
BNK Financial Group Inc.     354,805       1,802,509  
GS Holdings Corp.     192,844       6,549,868  
Hana Financial Group Inc.     73,554       1,901,684  
Hankook Tire & Technology Co. Ltd.     93,125       1,955,280  
Hyundai Marine & Fire Insurance Co. Ltd.     113,313       2,108,583  
KB Financial Group Inc.     255,859       8,195,072  
LG Chem Ltd.     29,375       8,900,782  
LG Corp.     94,375       5,245,214  
LG Display Co. Ltd.(a)(c)     496,368       5,558,341  
LG Electronics Inc.     146,875       7,304,446  
LG Household & Health Care Ltd.     4,375       4,398,415  
LG Innotek Co. Ltd.     22,535       2,412,145  
NAVER Corp.     59,916       8,584,096  
NCSoft Corp.     6,875       3,673,837  
POSCO     54,520       8,776,171  
Samsung Card Co. Ltd.     69,645       1,932,513  
Samsung Electro-Mechanics Co. Ltd.     22,102       2,293,003  
Samsung Electronics Co. Ltd.     1,714,520       76,514,602  
Samsung Fire & Marine Insurance Co. Ltd.     12,553       2,046,516  
Samsung SDI Co. Ltd.     30,693       7,455,278  
Shinhan Financial Group Co. Ltd.     510,801       13,584,909  
SK Holdings Co. Ltd.     38,185       6,036,657  
SK Hynix Inc.     138,228       10,004,316  
SK Innovation Co. Ltd.     35,180       3,273,232  
SK Telecom Co. Ltd.     29,403       5,144,617  
S-Oil Corp.     55,194       3,026,694  
              215,055,375  
Taiwan — 13.5%                
Acer Inc.     11,093,000       5,989,879  
ASE Technology Holding Co. Ltd.     1,030,186       2,425,808  
Catcher Technology Co. Ltd.     253,000       1,980,251  
Cathay Financial Holding Co. Ltd.     8,697,110       11,503,468  
Chailease Holding Co. Ltd.     741,300       2,815,420  
Security   Shares     Value  
             
Taiwan (continued)                
China Steel Corp.     3,247,000     $ 2,466,388  
Chunghwa Telecom Co. Ltd.     2,276,000       8,117,968  
CTBC Financial Holding Co. Ltd.     9,400,000       7,047,012  
Delta Electronics Inc.     1,382,000       6,389,802  
E.Sun Financial Holding Co. Ltd.     24,504,390       23,509,388  
Eva Airways Corp.     5,625,000       2,238,519  
Far Eastern New Century Corp.     3,750,000       3,498,654  
Far EasTone Telecommunications Co. Ltd.     1,250,000       2,728,744  
First Financial Holding Co. Ltd.     11,439,000       8,953,394  
Fubon Financial Holding Co. Ltd.     9,584,000       14,069,215  
Hiwin Technologies Corp.     203,050       2,021,816  
Hotai Motor Co. Ltd.     282,000       5,839,396  
Inventec Corp.     5,196,000       3,938,249  
Lite-On Technology Corp.     2,752,039       3,985,433  
MediaTek Inc.     382,000       4,541,687  
President Chain Store Corp.     807,000       7,902,228  
Taishin Financial Holding Co. Ltd.     26,113,054       12,246,086  
Taiwan Business Bank     14,504,500       5,748,245  
Taiwan Mobile Co. Ltd.     625,000       2,167,308  
Taiwan Semiconductor Manufacturing Co. Ltd.     10,263,000       107,105,732  
Tatung Co. Ltd.(a)     3,003,000       2,087,655  
Win Semiconductors Corp.     226,000       2,041,348  
Wistron Corp.     8,584,768       7,669,148  
Yuanta Financial Holding Co. Ltd.     4,488,000       2,845,807  
              273,874,048  
Thailand — 3.2%                
Bangkok Dusit Medical Services PCL, NVDR     2,914,700       2,050,589  
BTS Group Holdings PCL, NVDR     9,974,300       3,445,409  
Central Pattana PCL, NVDR     1,312,500       2,204,484  
Kasikornbank PCL     625,000       2,366,899  
Kasikornbank PCL, NVDR     1,625,000       6,128,189  
Minor International PCL, NVDR     18,665,100       16,266,527  
PTT Exploration & Production PCL, NVDR     1,191,200       4,001,496  
PTT PCL, NVDR     6,862,600       8,481,743  
Siam Cement PCL (The), NVDR     1,004,300       9,866,360  
Siam Commercial Bank PCL (The), NVDR     2,812,500       7,776,600  
Total Access Communication PCL, NVDR     1,646,600       1,904,640  
              64,492,936  
Turkey — 0.4%                
Arcelik AS(a)     1,438,593       4,277,162  
Turkcell Iletisim Hizmetleri AS     1,434,540       3,177,027  
              7,454,189  
United Arab Emirates — 0.9%                
Abu Dhabi Commercial Bank PJSC     4,023,750       7,811,086  
First Abu Dhabi Bank PJSC     2,491,875       9,715,388  
              17,526,474  
Total Common Stocks — 96.9%                
(Cost: $2,095,834,334)             1,966,346,916  
                 
Preferred Stocks                
                 
Brazil — 2.0%                
Banco Bradesco SA, Preference Shares, NVS     1,500,046       10,150,700  
Cia. Brasileira de Distribuicao, Preference Shares, NVS     239,500       3,827,944  
Cia. Energetica de Minas Gerais, Preference Shares, NVS     2,483,182       7,683,491  
Itau Unibanco Holding SA, Preference Shares, NVS     1,429,210       10,137,028  
Itausa-Investimentos Itau SA, Preference Shares, NVS     1,500,031       3,993,078  


28 2 0 2 0  i S h a r e s  S e m i - A n n u a l  R e p o r t  t o  S h a r e h o l d e r s

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® ESG MSCI EM ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
Brazil (continued)                
Telefonica Brasil SA, Preference Shares, NVS     453,800     $ 5,369,176  
              41,161,417  
Colombia — 0.1%                
Bancolombia SA, Preference Shares, NVS     213,125       2,528,376  
                 
South Korea — 0.8%                
LG Household & Health Care Ltd., Preference Shares, NVS     3,556       2,146,190  
Samsung Electronics Co. Ltd., Preference Shares, NVS .     345,961       12,975,318  
              15,121,508  
                 
Total Preferred Stocks — 2.9%                
(Cost: $66,184,575)             58,811,301  
                 
Rights                
                 
China — 0.0%                
Legend Holdings Corp. Class H, (Expires 04/16/20)(a)     29,546       0 (e)
                 
Total Rights — 0.0%                
(Cost: $0)             0 (e)
                 
Warrants                
                 
Thailand — 0.0%                
BTS Group Holdings PCL (Expires 02/16/21)(a)     437,580       11,926  
                 
Total Warrants — 0.0%                
(Cost: $0)             11,926  
Security   Shares     Value  
             
Short-Term Investments                
                 
Money Market Funds — 0.6%                
BlackRock Cash Funds: Institutional, SL Agency Shares, 1.74%(f)(g)(h)     11,861,712     $ 11,870,015  
                 
Total Short-Term Investments — 0.6%                
(Cost: $11,867,321)             11,870,015  
                 
Total Investments in Securities — 100.4%                
(Cost: $2,173,886,230)             2,037,040,158  
                 
Other Assets, Less Liabilities — (0.4)%             (7,683,836 )
                 
Net Assets — 100.0%           $ 2,029,356,322  

 

(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) All or a portion of this security is on loan.

(d) This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933.

(e) Rounds to less than $1.

(f) Affiliate of the Fund.

(g) Annualized 7-day yield as of period-end.

(h) All or a portion of this security was purchased with cash collateral received from loaned securities.



Affiliates

 

Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

 

Affiliated Issuer   Shares
Held at
08/31/19
    Net
Activity
    Shares
Held at
02/29/20
    Value at
02/29/20
    Income     Net Realized
Gain (Loss)(a)
    Change in
Unrealized
Appreciation
(Depreciation)
 
BlackRock Cash Funds: Institutional, SL Agency Shares     5,712,482       6,149,230       11,861,712     $ 11,870,015     $ 189,631 (b)   $ 1,109     $ 988  
BlackRock Cash Funds: Treasury, SL Agency Shares     1,431,000       (1,431,000 )                 15,270              
                            $ 11,870,015     $ 204,901     $ 1,109     $ 988  

 

(a) Includes realized capital gain distributions from an affiliated fund, if any.

(b) Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

 

Futures Contracts

 

                      Value/  
                Notional     Unrealized  
    Number of     Expiration     Amount     Appreciation  
Description     Contracts       Date       (000 )     (Depreciation)  
Long Contracts                                
MSCI Emerging Markets E-Mini     148       03/20/20     $ 7,465     $ (266,110 )

 

S c h e d u l e  o f  I n v e s t m e n t s 29

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® ESG MSCI EM ETF
February 29, 2020  

 

Derivative Financial Instruments Categorized by Risk Exposure

 

As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

    Equity
Contracts
 
Liabilities — Derivative Financial Instruments      
Futures contracts      
Unrealized depreciation on futures contracts(a)   $ 266,110  

 

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

 

For the six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

    Equity Contracts  
Net Realized Gain (Loss) from:      
Futures contracts   $ (60,032 )
Net Change in Unrealized Appreciation (Depreciation) on:        
Futures contracts   $ (241,612 )

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:      
Average notional value of contracts — long   $ 3,664,273  

 

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

 

Fair Value Measurements

 

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

 

The following table summarizes the value of the Fund's investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund's investments into major categories is disclosed in the Schedule of Investments above.

 

    Level 1     Level 2     Level 3     Total  
Investments                        
Assets                        
Common Stocks   $ 1,966,346,916     $     $     $ 1,966,346,916  
Preferred Stocks     58,811,301                   58,811,301  
Rights           0 (a)           0 (a)
Warrants     11,926                   11,926  
Money Market Funds     11,870,015                   11,870,015  
    $ 2,037,040,158     $ 0 (a)   $     $ 2,037,040,158  
Derivative financial instruments(b)                                
Liabilities                                
Futures Contracts   $ (266,110 )   $     $     $ (266,110 )

 

(a) Rounds to less than $1.

(b) Shown at the unrealized appreciation (depreciation) on the contracts.

 

See notes to financial statements.

 

30 2 0 2 0  i S h a r e s  S e m i - A n n u a l  R e p o r t  t o  S h a r e h o l d e r s

 

 

 

 

Schedule of Investments (unaudited) iShares® MSCI Emerging Markets ex China ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
Common Stocks                
                 
Argentina — 0.3%                
Banco Macro SA, ADR     343     $ 9,940  
Globant SA(a)     315       35,598  
Grupo Financiero Galicia SA, ADR     665       8,406  
Telecom Argentina SA, ADR     1,295       15,022  
YPF SA, ADR     1,253       10,011  
              78,977  
Brazil — 7.2%                
Ambev SA     40,600       130,844  
Atacadao SA     3,500       16,051  
B2W Cia. Digital(a)     2,168       29,865  
B3 SA - Brasil, Bolsa, Balcao     18,200       193,632  
Banco Bradesco SA     9,144       55,310  
Banco BTG Pactual SA     2,100       31,447  
Banco do Brasil SA     7,000       72,705  
Banco Santander Brasil SA     2,800       24,738  
BB Seguridade Participacoes SA     6,300       44,475  
BR Malls Participacoes SA     8,400       30,423  
BRF SA(a)     4,900       29,368  
CCR SA.     10,500       38,005  
Centrais Eletricas Brasileiras SA     2,791       21,361  
Cia. de Saneamento Basico do Estado de Sao Paulo     2,800       36,461  
Cia. Siderurgica Nacional SA     6,300       15,612  
Cielo SA     10,500       15,942  
Cogna Educacao     13,300       29,745  
Cosan SA     1,400       22,705  
Embraer SA(a)     7,000       26,314  
Energisa SA     1,400       16,757  
Engie Brasil Energia SA     2,100       22,123  
Equatorial Energia SA     8,400       45,913  
Hapvida Participacoes e Investimentos SA(b)     1,400       17,129  
Hypera SA     3,500       26,609  
IRB Brasil Resseguros S/A     6,300       46,430  
JBS SA     9,800       49,308  
Klabin SA     7,700       32,854  
Localiza Rent a Car SA     5,840       64,126  
Lojas Renner SA     7,030       83,051  
Magazine Luiza SA     6,300       70,545  
Multiplan Empreendimentos Imobiliarios SA     4,200       28,412  
Natura & Co. Holding SA     4,900       49,427  
Notre Dame Intermedica Participacoes SA     4,200       58,862  
Petrobras Distribuidora SA     5,600       32,396  
Petroleo Brasileiro SA     31,500       189,559  
Raia Drogasil SA     2,100       55,809  
Rumo SA(a)     11,200       52,430  
Sul America SA     1,400       16,775  
Suzano SA     4,900       41,423  
TIM Participacoes SA     7,000       25,026  
Ultrapar Participacoes SA     6,300       26,643  
Vale SA     28,071       275,692  
WEG SA     7,040       67,331  
              2,259,633  
Chile — 0.9%                
Banco de Chile     300,181       26,365  
Banco de Credito e Inversiones SA     540       20,077  
Banco Santander Chile     569,135       25,316  
Cencosud SA     13,265       15,524  
Cia. Cervecerias Unidas SA     1,918       14,365  
Empresas CMPC SA     12,418       24,977  
Security   Shares     Value  
             
Chile (continued)                
Empresas COPEC SA     3,640     $ 28,172  
Enel Americas SA     339,626       56,720  
Enel Chile SA.     335,699       29,873  
Latam Airlines Group SA     2,201       14,639  
SACI Falabella     8,008       26,553  
              282,581  
Colombia — 0.4%                
Bancolombia SA     3,157       34,711  
Ecopetrol SA     41,244       36,104  
Grupo Argos SA     3,843       16,252  
Grupo de Inversiones Suramericana SA     2,828       24,317  
Interconexion Electrica SA ESP     4,816       25,254  
              136,638  
Czech Republic — 0.2%                
CEZ AS     1,274       24,241  
Komercni Banka AS     714       21,761  
Moneta Money Bank AS(b)     3,885       12,812  
              58,814  
Egypt — 0.2%                
Commercial International Bank Egypt SAE .     10,737       56,706  
Eastern Co. SAE     9,744       8,938  
              65,644  
Greece — 0.3%                
Alpha Bank AE(a)     13,860       19,594  
Eurobank Ergasias SA(a)     20,004       12,437  
Hellenic Telecommunications Organization SA     1,824       25,686  
Jumbo SA     1,064       16,619  
National Bank of Greece SA(a)     4,914       10,793  
OPAP SA     1,794       19,115  
              104,244  
Hungary — 0.4%                
MOL Hungarian Oil & Gas PLC     3,864       29,717  
OTP Bank Nyrt     1,869       80,808  
Richter Gedeon Nyrt     1,253       25,334  
              135,859  
Indonesia — 2.8%                
Adaro Energy Tbk PT     130,900       10,538  
Astra International Tbk PT     168,700       64,964  
Bank Central Asia Tbk PT     86,100       188,733  
Bank Mandiri Persero Tbk PT     169,400       85,895  
Bank Negara Indonesia Persero Tbk PT     73,500       35,988  
Bank Rakyat Indonesia Persero Tbk PT     502,600       146,778  
Barito Pacific Tbk PT(a)     247,800       17,012  
Charoen Pokphand Indonesia Tbk PT     71,400       28,366  
Gudang Garam Tbk PT     4,900       17,418  
Hanjaya Mandala Sampoerna Tbk PT     62,300       7,382  
Indah Kiat Pulp & Paper Corp. Tbk PT     21,000       8,233  
Indocement Tunggal Prakarsa Tbk PT     18,200       18,933  
Indofood CBP Sukses Makmur Tbk PT     14,700       10,527  
Indofood Sukses Makmur Tbk PT     47,600       21,565  
Kalbe Farma Tbk PT     199,500       16,964  
Pabrik Kertas Tjiwi Kimia Tbk PT     14,700       6,147  
Perusahaan Gas Negara Tbk PT     108,500       9,680  
Semen Indonesia Persero Tbk PT     32,200       23,509  
Telekomunikasi Indonesia Persero Tbk PT     452,200       109,997  
Unilever Indonesia Tbk PT     66,500       31,633  
United Tractors Tbk PT     16,100       18,628  


S c h e d u l e  o f  I n v e s t m e n t s 31

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI Emerging Markets ex China ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
Indonesia (continued)                
XL Axiata Tbk PT(a)     12,600     $ 2,274  
              881,164  
Malaysia — 2.8%                
Axiata Group Bhd     27,300       27,073  
British American Tobacco Malaysia Bhd     100       295  
CIMB Group Holdings Bhd     48,300       55,233  
Dialog Group Bhd     30,800       24,406  
DiGi.Com Bhd     35,700       35,234  
Gamuda Bhd     22,400       17,591  
Genting Bhd     23,800       27,950  
Genting Malaysia Bhd     28,000       19,198  
Hartalega Holdings Bhd     15,400       22,652  
Hong Leong Bank Bhd     8,400       30,491  
IHH Healthcare Bhd     21,000       28,399  
IOI Corp. Bhd     14,700       14,543  
Kuala Lumpur Kepong Bhd     4,900       25,389  
Malayan Banking Bhd     37,800       75,510  
Malaysia Airports Holdings Bhd     4,800       7,505  
Maxis Bhd     23,800       30,661  
MISC Bhd     16,800       30,252  
Nestle Malaysia Bhd     700       23,749  
Petronas Chemicals Group Bhd     19,600       25,110  
Petronas Gas Bhd     4,900       19,321  
PPB Group Bhd     6,340       27,225  
Press Metal Aluminium Holdings Bhd     17,500       19,348  
Public Bank Bhd     28,700       116,434  
RHB Bank Bhd     14,000       18,434  
Sime Darby Bhd     32,200       15,279  
Sime Darby Plantation Bhd     21,700       25,535  
Telekom Malaysia Bhd     4,200       3,687  
Tenaga Nasional Bhd     26,600       76,361  
Top Glove Corp. Bhd     17,500       23,416  
YTL Corp. Bhd     42,740       8,568  
              874,849  
Mexico — 3.6%                
Alfa SAB de CV, Class A     19,600       12,445  
America Movil SAB de CV, Series L, NVS     298,200       233,782  
Arca Continental SAB de CV     4,200       22,911  
Cemex SAB de CV, CPO, NVS     128,800       41,249  
Coca-Cola Femsa SAB de CV     4,900       26,975  
Fibra Uno Administracion SA de CV     30,100       44,991  
Fomento Economico Mexicano SAB de CV     16,800       135,111  
Gruma SAB de CV, Series B     1,820       17,381  
Grupo Aeroportuario del Pacifico SAB de CV, Series B.     3,500       37,775  
Grupo Aeroportuario del Sureste SAB de CV, Class B.     2,205       36,187  
Grupo Bimbo SAB de CV, Series A     16,100       24,146  
Grupo Financiero Banorte SAB de CV, Class O     23,100       124,435  
Grupo Financiero Inbursa SAB de CV, Class O     17,500       18,670  
Grupo Mexico SAB de CV, Series B     32,200       75,504  
Grupo Televisa SAB, CPO     21,700       40,371  
Industrias Penoles SAB de CV     1,400       12,549  
Infraestructura Energetica Nova SAB de CV     2,100       9,083  
Kimberly-Clark de Mexico SAB de CV, Class A     17,500       32,947  
Megacable Holdings SAB de CV, CPO     2,800       9,321  
Orbia Advance Corp. SAB de CV     9,100       17,693  
Promotora y Operadora de Infraestructura SAB de CV     3,010       29,213  
Wal-Mart de Mexico SAB de CV     46,200       128,823  
              1,131,562  
Security   Shares     Value  
             
Pakistan — 0.0%                
MCB Bank Ltd     6,300     $ 7,987  
                 
Peru — 0.5%                
Cia. de Minas Buenaventura SAA, ADR     1,967       21,932  
Credicorp Ltd.     602       109,125  
Southern Copper Corp.     777       26,146  
              157,203  
Philippines — 1.5%                
Aboitiz Equity Ventures Inc.     25,550       21,377  
Ayala Corp.     2,590       33,661  
Ayala Land Inc.     81,900       62,660  
BDO Unibank Inc.     17,360       47,338  
GT Capital Holdings Inc.     1,194       16,654  
International Container Terminal Services Inc.     8,960       18,632  
JG Summit Holdings Inc.     31,010       41,063  
Jollibee Foods Corp.     4,830       16,108  
Manila Electric Co.     2,870       15,190  
Metro Pacific Investments Corp.     189,600       11,419  
Metropolitan Bank & Trust Co.     7,987       8,782  
PLDT Inc.     875       16,993  
SM Investments Corp.     2,345       44,830  
SM Prime Holdings Inc.     100,100       75,210  
Universal Robina Corp.     9,030       25,031  
              454,948  
Poland — 1.2%                
Bank Polska Kasa Opieki SA     1,547       34,544  
CCC SA     532       9,708  
CD Projekt SA     609       43,018  
Dino Polska SA(a)(b)     294       10,574  
Grupa Lotos SA     896       13,513  
KGHM Polska Miedz SA(a)     1,365       24,422  
LPP SA     14       24,501  
mBank SA(a)     189       14,285  
Orange Polska SA(a)     2,982       4,667  
PGE Polska Grupa Energetyczna SA(a)     8,498       9,634  
Polski Koncern Naftowy ORLEN SA     2,786       41,436  
Polskie Gornictwo Naftowe i Gazownictwo SA     17,318       13,915  
Powszechna Kasa Oszczednosci Bank Polski SA     8,295       65,831  
Powszechny Zaklad Ubezpieczen SA     5,257       46,334  
Santander Bank Polska SA     343       21,819  
              378,201  
Qatar — 1.4%                
Commercial Bank PSQC (The)     16,450       20,308  
Industries Qatar QSC     14,952       36,673  
Masraf Al Rayan QSC     39,060       43,373  
Mesaieed Petrochemical Holding Co.     38,360       18,524  
Ooredoo QPSC     11,025       19,022  
Qatar Electricity & Water Co. QSC     6,160       25,294  
Qatar Fuel QSC     2,576       13,564  
Qatar Insurance Co. SAQ     17,220       12,685  
Qatar International Islamic Bank QSC     3,906       9,058  
Qatar Islamic Bank SAQ     10,360       44,094  
Qatar National Bank QPSC     40,516       208,256  
              450,851  
Russia — 5.6%                
Alrosa PJSC     21,420       22,756  
Gazprom PJSC     94,010       283,499  
Inter RAO UES PJSC     413,000       31,983  
LUKOIL PJSC     3,570       302,786  


32 2 0 2 0  i S h a r e s  S e m i - A n n u a l  R e p o r t  t o  S h a r e h o l d e r s

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI Emerging Markets ex China ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
                 
Russia (continued)                
Magnit PJSC, GDR(c)     2,702     $ 29,425  
MMC Norilsk Nickel PJSC     588       177,187  
Mobile TeleSystems PJSC, ADR     4,648       45,086  
Moscow Exchange MICEX-RTS PJSC     3,220       4,748  
Novatek PJSC, GDR(c)     812       116,360  
Novolipetsk Steel PJSC     9,660       17,960  
PhosAgro PJSC, GDR(c)     1,204       13,256  
Polymetal International PLC     1,841       28,083  
Polyus PJSC     140       17,633  
Rosneft Oil Co. PJSC, GDR(c)     10,927       66,108  
Sberbank of Russia PJSC     91,840       318,925  
Severstal PJSC     2,100       25,456  
Surgutneftegas PJSC     64,400       36,834  
Tatneft PJSC     13,440       134,320  
VTB Bank PJSC, GDR(c)     18,592       23,630  
X5 Retail Group NV, GDR(c)     1,246       38,391  
              1,734,426  
Saudi Arabia — 4.0%                
Advanced Petrochemical Co.     1,652       19,750  
Al Rajhi Bank     11,487       189,536  
Alinma Bank     4,151       25,737  
Almarai Co. JSC     2,247       27,432  
Arab National Bank     2,821       19,025  
Bank AlBilad     4,109       26,243  
Bank Al-Jazira     5,866       21,766  
Banque Saudi Fransi     4,872       44,220  
Bupa Arabia for Cooperative Insurance Co.     602       15,565  
Co for Cooperative Insurance (The)(a) .     952       17,459  
Dar Al Arkan Real Estate Development Co.(a)     3,570       8,917  
Etihad Etisalat Co.(a)     3,045       18,620  
Jarir Marketing Co.     616       24,926  
National Commercial Bank     9,625       113,658  
Riyad Bank     11,039       64,501  
Sahara International Petrochemical Co.     4,543       18,891  
Samba Financial Group     8,799       62,976  
Saudi Airlines Catering Co.     588       14,294  
Saudi Arabian Fertilizer Co.     1,554       27,837  
Saudi Arabian Mining Co.(a)     3,003       30,498  
Saudi Arabian Oil Co.(a)(b)     8,687       77,225  
Saudi Basic Industries Corp.     6,167       129,373  
Saudi British Bank (The)     4,333       32,571  
Saudi Cement Co.     1,064       17,301  
Saudi Electricity Co.     7,616       34,106  
Saudi Industrial Investment Group     3,318       18,644  
Saudi Kayan Petrochemical Co.(a)     8,568       20,235  
Saudi Telecom Co.     3,794       83,536  
Savola Group (The)(a)     1,729       15,417  
Yanbu National Petrochemical Co.     2,002       26,416  
              1,246,675  
South Africa — 6.5%                
Absa Group Ltd.     6,517       54,807  
Anglo American Platinum Ltd.     483       32,156  
AngloGold Ashanti Ltd.     3,773       66,620  
Aspen Pharmacare Holdings Ltd.(a)     2,772       17,621  
Bid Corp. Ltd.     2,982       52,721  
Bidvest Group Ltd. (The)     2,856       32,678  
Capitec Bank Holdings Ltd.     406       33,550  
Clicks Group Ltd.     2,275       34,057  
Discovery Ltd.     3,542       21,682  
Security   Shares     Value  
             
South Africa (continued)                
Exxaro Resources Ltd.     2,457     $ 17,492  
FirstRand Ltd.     30,226       105,906  
Foschini Group Ltd. (The)     2,282       18,093  
Gold Fields Ltd.     7,546       44,236  
Growthpoint Properties Ltd.     26,691       29,861  
Impala Platinum Holdings Ltd.(a)     6,972       55,243  
Investec Ltd.     2,709       13,582  
Kumba Iron Ore Ltd.     336       5,995  
Life Healthcare Group Holdings Ltd.     14,595       20,689  
Mr. Price Group Ltd.     2,009       19,280  
MTN Group Ltd.     15,407       72,180  
MultiChoice Group Ltd.(a)     4,256       24,462  
Naspers Ltd., Class N     3,815       577,395  
Nedbank Group Ltd     3,298       37,025  
NEPI Rockcastle PLC     3,864       28,001  
Northam Platinum Ltd.(a)     2,814       19,893  
Old Mutual Ltd.     45,682       45,474  
Pick n Pay Stores Ltd.     3,570       12,536  
PSG Group Ltd.     1,498       17,769  
Rand Merchant Investment Holdings Ltd.     6,594       10,424  
Redefine Properties Ltd.     51,156       17,657  
Reinet Investments SCA     1,428       29,263  
Remgro Ltd.     4,767       48,484  
RMB Holdings Ltd.     6,797       30,270  
Sanlam Ltd.     17,367       71,735  
Sasol Ltd.     4,837       57,159  
Shoprite Holdings Ltd.     4,018       28,637  
Sibanye Stillwater Ltd.(a)     19,824       39,657  
SPAR Group Ltd. (The)     1,645       17,149  
Standard Bank Group Ltd.     11,543       108,962  
Tiger Brands Ltd.     1,351       13,003  
Vodacom Group Ltd.     5,397       37,624  
Woolworths Holdings Ltd.     8,708       19,789  
              2,040,817  
South Korea — 16.9%                
Amorepacific Corp.(a)     322       42,686  
AMOREPACIFIC Group(a)     252       12,865  
BGF retail Co. Ltd.     99       12,350  
BNK Financial Group Inc.     2,758       14,011  
Celltrion Healthcare Co. Ltd.(a)     514       27,425  
Celltrion Inc.(a)     837       117,159  
CJ CheilJedang Corp.     98       19,689  
CJ ENM Co. Ltd.     126       13,051  
Coway Co. Ltd.     490       27,798  
Daelim Industrial Co. Ltd.(a)     315       18,804  
Daewoo Shipbuilding & Marine Engineering Co. Ltd.(a)     616       11,235  
DB Insurance Co. Ltd.     448       15,972  
E-MART Inc.     203       17,550  
Fila Holdings Corp.     427       13,501  
GS Engineering & Construction Corp.     714       15,432  
GS Holdings Corp.     539       18,307  
Hana Financial Group Inc.     2,394       61,895  
Hankook Tire & Technology Co. Ltd.     686       14,403  
Hanmi Pharm Co. Ltd.(a)     71       15,258  
Hanon Systems     2,233       19,397  
Hanwha Corp.     546       9,014  
Hanwha Solutions Corp.     1,022       15,021  
HDC Hyundai Development Co-Engineering & Construction, Class E     231       3,433  
Helixmith Co. Ltd.(a)     200       10,226  


S c h e d u l e  o f  I n v e s t m e n t s 33

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI Emerging Markets ex China ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
South Korea (continued)                
HLB Inc.(a)     318     $ 25,267  
Hotel Shilla Co. Ltd.     322       21,290  
Hyundai Engineering & Construction Co. Ltd.     728       20,800  
Hyundai Glovis Co. Ltd.     189       19,141  
Hyundai Heavy Industries Holdings Co. Ltd.     112       24,945  
Hyundai Marine & Fire Insurance Co. Ltd.     637       11,854  
Hyundai Mobis Co. Ltd.     609       105,303  
Hyundai Motor Co.     1,358       128,588  
Hyundai Steel Co.     847       16,633  
Industrial Bank of Korea(a)     2,261       17,705  
Kakao Corp.     441       62,455  
Kangwon Land Inc.(a)     847       15,901  
KB Financial Group Inc.     3,521       112,776  
KCC Corp.     40       5,484  
Kia Motors Corp.     2,394       71,455  
KMW Co. Ltd.(a)     406       16,263  
Korea Aerospace Industries Ltd.(a)     812       17,149  
Korea Electric Power Corp.(a)     2,219       38,917  
Korea Investment Holdings Co. Ltd.(a).     441       22,804  
Korea Shipbuilding & Offshore Engineering Co. Ltd.(a)     392       33,568  
Korea Zinc Co. Ltd.(a)     91       31,058  
KT&G Corp     994       69,322  
LG Chem Ltd.     399       120,899  
LG Corp.     945       52,522  
LG Display Co. Ltd.(a)     1,960       21,948  
LG Electronics Inc.     1,008       50,130  
LG Household & Health Care Ltd.     84       84,450  
LG Innotek Co. Ltd.     119       12,738  
LG Uplus Corp.     1,204       13,086  
Lotte Chemical Corp.     154       23,775  
Lotte Corp.     273       6,530  
Lotte Shopping Co. Ltd.     120       9,406  
Medy-Tox Inc.     50       12,083  
Mirae Asset Daewoo Co. Ltd.(a)     3,220       16,809  
NAVER Corp.     1,218       174,501  
NCSoft Corp.     140       74,813  
Netmarble Corp.(a)(b)     238       17,363  
NH Investment & Securities Co. Ltd.(a)     1,799       14,783  
OCI Co. Ltd.(a)     182       7,380  
Orion Corp     238       18,480  
Pearl Abyss Corp.(a)     56       8,171  
POSCO     686       110,427  
POSCO Chemical Co. Ltd     238       10,759  
Samsung Biologics Co. Ltd.(a)(b)     147       56,101  
Samsung C&T Corp     707       61,415  
Samsung Electro-Mechanics Co. Ltd.     532       55,193  
Samsung Electronics Co. Ltd.     41,538       1,853,734  
Samsung Engineering Co. Ltd.(a)     1,365       15,847  
Samsung Fire & Marine Insurance Co. Ltd.     287       46,790  
Samsung Heavy Industries Co. Ltd.(a)     5,159       24,765  
Samsung Life Insurance Co. Ltd.     686       33,043  
Samsung SDI Co. Ltd.     511       124,121  
Samsung SDS Co. Ltd.     301       41,265  
Samsung Securities Co. Ltd.     413       11,256  
Shinhan Financial Group Co. Ltd.     3,759       99,972  
Shinsegae Inc.     70       13,602  
SK Holdings Co. Ltd.     350       55,331  
SK Hynix Inc.     4,802       347,547  
SK Innovation Co. Ltd.     476       44,288  
SK Telecom Co. Ltd.     168       29,395  
Security   Shares     Value  
             
South Korea (continued)                
S-Oil Corp     434     $ 23,799  
Woori Financial Group Inc.     3,456       27,346  
Yuhan Corp.     102       17,973  
            5,278,996  
Taiwan — 19.0%                
Acer Inc.     28,000       15,119  
Advantech Co. Ltd.     2,000       19,452  
ASE Technology Holding Co. Ltd.     35,000       82,416  
Asia Cement Corp.     21,000       30,758  
Asustek Computer Inc.     7,000       47,623  
AU Optronics Corp.     70,000       21,962  
Catcher Technology Co. Ltd.     7,000       54,790  
Cathay Financial Holding Co. Ltd.     70,063       92,671  
Chailease Holding Co. Ltd.     7,442       28,264  
Chang Hwa Commercial Bank Ltd.     56,461       43,260  
Cheng Shin Rubber Industry Co. Ltd.     14,000       18,286  
China Airlines Ltd.     56,000       15,091  
China Development Financial Holding Corp.     119,000       35,999  
China Life Insurance Co. Ltd.(a)     28,507       22,736  
China Steel Corp.     84,000       63,806  
Chunghwa Telecom Co. Ltd.     35,000       124,837  
Compal Electronics Inc.     35,000       21,326  
CTBC Financial Holding Co. Ltd.     168,000       125,947  
Delta Electronics Inc.     14,000       64,730  
E.Sun Financial Holding Co. Ltd.     105,691       101,399  
Far Eastern New Century Corp.     35,000       32,654  
Far EasTone Telecommunications Co. Ltd.     14,000       30,562  
First Financial Holding Co. Ltd.     92,572       72,457  
Formosa Chemicals & Fibre Corp.     35,000       95,015  
Formosa Petrochemical Corp.     14,000       39,809  
Formosa Plastics Corp.     42,000       126,224  
Foxconn Technology Co. Ltd.     14,000       27,510  
Fubon Financial Holding Co. Ltd.     56,000       82,207  
Globalwafers Co. Ltd.     1,000       13,524  
Highwealth Construction Corp.     7,000       10,368  
Hon Hai Precision Industry Co. Ltd.     112,200       297,550  
Hotai Motor Co. Ltd.     2,600       53,838  
Hua Nan Financial Holdings Co. Ltd.     84,070       59,833  
Innolux Corp.     98,000       25,569  
Inventec Corp.     35,000       26,528  
Largan Precision Co. Ltd.     1,000       146,304  
Lite-On Technology Corp.     21,000       30,412  
MediaTek Inc.     14,000       166,449  
Mega Financial Holding Co. Ltd.     112,000       119,659  
Micro-Star International Co. Ltd.     7,000       20,991  
Nan Ya Plastics Corp.     42,000       94,460  
Nanya Technology Corp.     14,000       35,740  
Novatek Microelectronics Corp.     7,000       45,196  
Pegatron Corp.     21,000       43,485  
Pou Chen Corp.     35,000       39,416  
Powertech Technology Inc.     7,000       23,580  
President Chain Store Corp.     5,000       48,961  
Quanta Computer Inc.     28,000       57,333  
Realtek Semiconductor Corp.     7,000       52,015  
Shanghai Commercial & Savings Bank Ltd. (The)     28,437       47,239  
Shin Kong Financial Holding Co. Ltd.     107,258       32,624  
SinoPac Financial Holdings Co. Ltd.     133,259       57,213  
Synnex Technology International Corp.     14,000       17,385  
Taishin Financial Holding Co. Ltd.     106,904       50,134  
Taiwan Business Bank     51,100       20,251  


34 2 0 2 0  i S h a r e s  S e m i - A n n u a l  R e p o r t  t o  S h a r e h o l d e r s

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI Emerging Markets ex China ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
Taiwan (continued)                
Taiwan Cement Corp.     35,173     $ 49,078  
Taiwan Cooperative Financial Holding Co. Ltd.     84,664       58,578  
Taiwan High Speed Rail Corp.     28,000       31,903  
Taiwan Mobile Co. Ltd.     14,000       48,548  
Taiwan Semiconductor Manufacturing Co. Ltd.     214,000       2,233,326  
Uni-President Enterprises Corp.     42,000       101,534  
United Microelectronics Corp.     105,000       53,056  
Vanguard International Semiconductor Corp.     7,000       17,154  
Win Semiconductors Corp.     2,000       18,065  
Winbond Electronics Corp.     42,000       22,193  
Wistron Corp.     35,598       31,801  
WPG Holdings Ltd.     15,520       19,887  
Yageo Corp.     1,000       13,541  
Yuanta Financial Holding Co. Ltd.     91,000       57,702  
              5,929,333  
Thailand — 3.6%                
Advanced Info Service PCL, NVDR     11,200       70,987  
Airports of Thailand PCL, NVDR     39,900       75,551  
B Grimm Power PCL, NVDR     8,400       12,046  
Bangkok Bank PCL, Foreign     2,800       11,669  
Bangkok Dusit Medical Services PCL, NVDR     85,400       60,082  
Bangkok Expressway & Metro PCL, NVDR     65,800       19,289  
Banpu PCL, NVDR     51,100       11,498  
Berli Jucker PCL, NVDR     16,100       18,623  
BTS Group Holdings PCL, NVDR     17,500       6,045  
Bumrungrad Hospital PCL, NVDR     4,900       19,954  
Central Pattana PCL, NVDR     21,000       35,272  
Charoen Pokphand Foods PCL, NVDR     41,300       35,011  
CP ALL PCL, NVDR     51,800       107,934  
Electricity Generating PCL, NVDR     2,800       24,224  
Energy Absolute PCL, NVDR     14,700       18,168  
Global Power Synergy PCL, NVDR     4,200       8,385  
Gulf Energy Development PCL, NVDR     4,200       22,028  
Home Product Center PCL, NVDR     44,800       18,173  
Indorama Ventures PCL, NVDR     14,700       12,112  
Intouch Holdings PCL, NVDR     16,100       27,552  
Kasikornbank PCL     11,200       42,415  
Kasikornbank PCL, NVDR     7,700       29,038  
Krung Thai Bank PCL, NVDR     31,500       13,976  
Land & Houses PCL, NVDR     79,800       21,243  
Minor International PCL, NVDR     23,100       20,131  
Muangthai Capital PCL, NVDR     4,200       7,653  
Osotspa PCL, NVDR     8,400       11,114  
PTT Exploration & Production PCL, NVDR     13,300       44,678  
PTT Global Chemical PCL, NVDR     21,700       28,367  
PTT PCL, NVDR     105,000       129,773  
Ratch Group PCL, NVDR     9,800       18,324  
Siam Cement PCL (The), NVDR     6,300       61,892  
Siam Commercial Bank PCL (The), NVDR     8,400       23,226  
Srisawad Corp PCL, NVDR     4,200       8,951  
Thai Oil PCL, NVDR     11,900       16,310  
Thai Union Group PCL, NVDR     46,200       22,401  
True Corp. PCL, NVDR     117,600       12,373  
              1,126,468  
Turkey — 0.7%                
Akbank T.A.S.(a)     26,117       28,252  
BIM Birlesik Magazalar AS     4,284       32,932  
Eregli Demir ve Celik Fabrikalari TAS     16,961       22,391  
Haci Omer Sabanci Holding AS     11,823       16,100  
Security   Shares     Value  
             
Turkey (continued)                
KOC Holding AS     8,505     $ 23,409  
Tupras Turkiye Petrol Rafinerileri AS     1,246       20,198  
Turk Hava Yollari AO(a)     6,489       12,201  
Turkcell Iletisim Hizmetleri AS     11,186       24,773  
Turkiye Garanti Bankasi AS(a)     22,771       34,616  
Turkiye Is Bankasi AS, Class C(a)     7,518       6,869  
              221,741  
United Arab Emirates — 1.0%                
Abu Dhabi Commercial Bank PJSC     21,476       41,690  
Aldar Properties PJSC     46,627       26,913  
DP World PLC     1,911       31,054  
Dubai Islamic Bank PJSC     14,931       21,952  
Emaar Malls PJSC     4,368       1,915  
Emaar Properties PJSC     33,908       32,312  
Emirates Telecommunications Group Co. PJSC     14,868       63,959  
First Abu Dhabi Bank PJSC     23,884       93,119  
              312,914  
                 
Total Common Stocks — 81.0%                
(Cost: $26,949,907)             25,350,525  
                 
Investment Companies                
                 
India — 13.9%                
iShares MSCI India ETF(d)     135,023       4,346,390  
                 
Total Investment Companies — 13.9%                
(Cost: $4,659,522)             4,346,390  
                 
Preferred Stocks                
                 
Brazil — 3.3%                
Banco Bradesco SA, Preference Shares, NVS     36,476       246,831  
Braskem SA, Class A, Preference Shares, NVS     1,400       8,344  
Centrais Eletricas Brasileiras SA, Class B, Preference Shares, NVS     1,400       11,125  
Cia. Brasileira de Distribuicao, Preference Shares, NVS     700       11,188  
Cia. Energetica de Minas Gerais, Preference Shares, NVS     5,608       17,352  
Gerdau SA, Preference Shares, NVS     10,500       39,401  
Itau Unibanco Holding SA, Preference Shares, NVS     42,700       302,860  
Itausa-Investimentos Itau SA, Preference Shares, NVS     39,934       106,304  
Lojas Americanas SA, Preference Shares, NVS     7,057       41,607  
Petroleo Brasileiro SA, Preference Shares, NVS     37,100       208,375  
Telefonica Brasil SA, Preference Shares, NVS     4,200       49,693  
              1,043,080  
Chile — 0.2%                
Embotelladora Andina SA, Class B, Preference Shares     5,978       14,392  
Sociedad Quimica y Minera de Chile SA, Series B, Preference Shares     1,078       28,196  
              42,588  
Colombia — 0.1%                
Bancolombia SA, Preference Shares, NVS     3,227       38,283  
                 
Russia — 0.1%                
Surgutneftegas PJSC, Preference Shares, NVS     65,800       32,087  
                 
South Korea — 1.0%                
Hyundai Motor Co.                
Preference Shares, NVS     196       10,700  
Series 2, Preference Shares, NVS     301       18,563  


S c h e d u l e  o f  I n v e s t m e n t s 35

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI Emerging Markets ex China ETF
February 29, 2020 (Percentages shown are based on Net Assets)

 

Security   Shares     Value  
             
South Korea (continued)                
Samsung Electronics Co. Ltd., Preference Shares, NVS     7,287     $ 273,300  
              302,563  
                 
Total Preferred Stocks — 4.7%                
(Cost: $1,613,810)             1,458,601  
                 
Rights                
                 
South Korea — 0.0%                
HDC Hyundai Development Co., (Expires 06/03/20)(a)     115       0 (e)
                 
Total Rights — 0.0%                
(Cost: $0)         0 (e)
                 
Warrants                
                 
Thailand — 0.0%                
BTS Group Holdings PCL (Expires 02/16/21)(a)     1,080       29  
                 
Total Warrants — 0.0%                
(Cost: $0)             29  
                 
Short-Term Investments                
                 
Money Market Funds — 0.1%                
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52%(d)(f)     39,000       39,000  
                 
Total Short-Term Investments — 0.1%                
(Cost: $39,000)             39,000  
                 
Total Investments in Securities — 99.7%                
(Cost: $33,262,239)             31,194,545  
                 
Other Assets, Less Liabilities — 0.3%             98,801  
                 
Net Assets — 100.0%           $ 31,293,346  
(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) This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933.

(d) Affiliate of the Fund.

(e) Rounds to less than $1.

(f) Annualized 7-day yield as of period-end.



Affiliates

 

Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

 

Affiliated Issuer   Shares
Held at
08/31/19
    Shares
Purchased
    Shares
Sold
    Shares
Held at
02/29/20
    Value at
02/29/20
    Income     Net
Realized
Gain (Loss)(a)
    Change in
Unrealized
Appreciation
(Depreciation)
 
BlackRock Cash Funds: Treasury, SL Agency Shares     73,000             (34,000 )(b)     39,000     $ 39,000     $ 379     $     $  
iShares MSCI India ETF     109,842       28,697       (3,516 )     135,023       4,346,390       3,818       (2,950 )     (66,848 )
                                    $ 4,385,390     $ 4,197     $ (2,950 )   $ (66,848 )

 

(a) Includes realized capital gain distributions from an affiliated fund, if any.

(b) Net of purchases and sales.

 

Fair Value Measurements

 

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

 

36 2 0 2 0  i S h a r e s  S e m i - A n n u a l  R e p o r t  t o  S h a r e h o l d e r s

 

 

 

 

Schedule of Investments (unaudited) (continued) iShares® MSCI Emerging Markets ex China ETF
February 29, 2020  

 

Fair Value Measurements (continued)

 

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.

 

    Level 1     Level 2     Level 3     Total  
Investments                        
Assets                        
Common Stocks   $ 25,350,525     $     $     $ 25,350,525  
Investment Companies     4,346,390                   4,346,390  
Preferred Stocks     1,458,601                   1,458,601  
Rights           0 (a)           0 (a)
Warrants     29                   29  
Money Market Funds     39,000                   39,000  
    $ 31,194,545     $ 0 (a)   $     $ 31,194,545  

 

(a) Rounds to less than $1.

 

See notes to financial statements.

 

S c h e d u l e  o f  I n v e s t m e n t s 37

 

 

 

 

Statements of Assets and Liabilities (unaudited)

February 29, 2020

 

      iShares
Edge MSCI Min
Vol Emerging
Markets ETF
(Consolidated)
      iShares
Edge MSCI Min
Vol Global ETF
      iShares
Edge MSCI
Multifactor
Emerging
Markets ETF
      iShares
ESG MSCI EM
ETF
 
                                 
ASSETS                                
Investments in securities, at value (including securities on loan)(a)                                
Unaffiliated(b)   $ 4,829,824,554     $ 5,289,451,019     $ 455,369,922     $ 2,025,170,143  
Affiliated(c)     38,977,324       19,286,507       3,522,896       11,870,015  
Cash     2,039,106       978             7,327,369  
Foreign currency, at value(d)     9,421,605       4,088,765       295,507       13,181,840  
Cash pledged:                                
Futures contracts     140,000       737,000       113,000       211,000  
Receivables:                                
Investments sold     26,614,763             322,832       97,159,031  
Securities lending income — Affiliated     30,111       6,602       1,684       28,157  
Variation margin on futures contracts                       43,961  
Capital shares sold                       15,072,930  
Dividends     9,742,489       9,822,986       1,409,323       2,448,479  
Tax reclaims     30,543       1,690,108       715       8,107  
Total assets     4,916,820,495       5,325,083,965       461,035,879       2,172,521,032  
                                 
LIABILITIES                                
Bank overdraft                 20,727        
Collateral on securities loaned, at value     36,824,390       10,735,265       2,736,679       11,863,704  
Deferred foreign capital gain tax     9,648,045       512,133       175,542        
Payables:                                
Investments purchased.     11,414                   129,037,621  
Variation margin on futures contracts     9,584       490       2,497        
Bank borrowings                       1,847,997  
Capital shares redeemed     36,840,116                    
Investment advisory fees     869,195       913,816       172,151       415,370  
Foreign taxes     146       1,339       1,694       18  
Total liabilities     84,202,890       12,163,043       3,109,290       143,164,710  
                                 
NET ASSETS   $ 4,832,617,605     $ 5,312,920,922     $ 457,926,589     $ 2,029,356,322  
                                 
NET ASSETS CONSIST OF:                                
Paid-in capital   $ 5,447,422,245     $ 4,899,315,946     $ 525,852,045     $ 2,226,218,106  
Accumulated earnings (loss)     (614,804,640 )     413,604,976       (67,925,456 )     (196,861,784 )
NET ASSETS   $ 4,832,617,605     $ 5,312,920,922     $ 457,926,589     $ 2,029,356,322  
                                 
Shares outstanding     90,800,000       59,100,000       11,300,000       62,500,000  
Net asset value   $ 53.22     $ 89.90     $ 40.52     $ 32.47  
Shares authorized     500 million       500 million       25 million       600 million  
Par value   $ 0.001     $ 0.001     $ 0.001     $ 0.001  
                                 
(a) Securities loaned, at value   $ 34,935,778     $ 10,491,587     $ 2,609,795     $ 10,979,539  
(b) Investments, at cost — Unaffiliated   $ 4,620,730,161     $ 4,812,373,731     $ 462,217,436     $ 2,162,018,909  
(c) Investments, at cost — Affiliated   $ 38,963,388     $ 19,281,679     $ 3,521,815     $ 11,867,321  
(d) Foreign currency, at cost   $ 9,429,329     $ 4,140,810     $ 302,958     $ 13,237,484  

 

See notes to financial statements.

 

38 2 0 2 0  i S h a r e  S  S e m i - A n n u a l  R e p o r t  t o  S h a r e h o l d e r s

 

 

 

 

Statements of Assets and Liabilities (unaudited) (continued)

February 29, 2020

 

    iShares  
    MSCI  
    Emerging  
      Markets ex  
      China ETF  
         
ASSETS        
Investments in securities, at value:        
Unaffiliated(a)   $ 26,809,155  
Affiliated(b)     4,385,390  
Foreign currency, at value(c)     45,783  
Receivables:        
Investments sold     3,869  
Dividends     98,492  
Total assets     31,342,689  
         
LIABILITIES        
Bank overdraft     18,141  
Payables:        
Investments purchased     27,068  
Investment advisory fees     4,116  
Foreign taxes     18  
Total liabilities     49,343  
         
NET ASSETS   $ 31,293,346  
         
NET ASSETS CONSIST OF:        
Paid-in capital   $ 34,062,182  
Accumulated loss     (2,768,836 )
NET ASSETS   $ 31,293,346  
         
Shares outstanding     700,000  
Net asset value   $ 44.70  
Shares authorized     25 million  
Par value   $ 0.001  
         
(a) Investments, at cost — Unaffiliated   $ 28,563,717  
(b) Investments, at cost — Affiliated   $ 4,698,522  
(c) Foreign currency, at cost   $ 47,152  
         
See notes to financial statements.        

 

F i n a n c i a l  S t a t e m e n t s 39

 

 

 

 

Statements of Operations (unaudited)

Six Months Ended February 29, 2020

 

      iShares
Edge MSCI
Min Vol
Emerging
Markets ETF
(Consolidated)
      iShares
Edge MSCI
Min Vol
Global ETF
      iShares
Edge MSCI
Multifactor
Emerging
Markets ETF
      iShares
ESG MSCI
EM ETF
 
                                 
INVESTMENT INCOME                                
Dividends — Unaffiliated   $ 39,461,642     $ 56,319,794     $ 4,062,374     $ 8,597,021  
Dividends — Affiliated     88,502       95,916       6,149       15,270  
Non-cash dividends — Unaffiliated                       4,695,795  
Interest — Unaffiliated     5,727             845       1,122  
Securities lending income — Affiliated — net(a)     163,568       88,064       21,527       189,631  
Foreign taxes withheld     (3,535,873 )     (2,339,572 )     (422,495 )     (924,963 )
Other foreign taxes     (44,569 )     (8,970 )           (12,977 )
Total investment income     36,138,997       54,155,232       3,668,400       12,560,899  
                                 
EXPENSES                                
Investment advisory fees     18,841,173       8,762,126       995,483       1,325,204  
Commitment fees     15,102       4,916       555       1,950  
Mauritius income taxes     175,988                    
Interest expense     10,405       9,521       6,694       2,789  
Total expenses     19,042,668       8,776,563       1,002,732       1,329,943  
                                 
Less:                                
Investment advisory fees waived     (12,204,183 )     (3,183,807 )            
Total expenses after fees waived     6,838,485       5,592,756       1,002,732       1,329,943  
Net investment income     29,300,512       48,562,476       2,665,668       11,230,956  
                                 
REALIZED AND UNREALIZED GAIN (LOSS)                                
Net realized gain (loss) from:                                
Investments — Unaffiliated(b)     (75,809,094 )     (48,894,341 )     (13,746,167 )     (27,290,169 )
Investments — Affiliated     3,311       4,411       (537 )     1,109  
In-kind redemptions — Unaffiliated     22,076,176       145,280,731       924,037        
Futures contracts     (163,858 )     1,880,260       68,120       (60,032 )
Foreign currency transactions     (632,805 )     (191,037 )     (44,264 )     (325,451 )
Net realized gain (loss)     (54,526,270 )     98,080,024       (12,798,811 )     (27,674,543 )
                                 
Net change in unrealized appreciation (depreciation) on:                                
Investments — Unaffiliated(c)     (219,376,745 )     (276,957,382 )     13,939,913       (119,417,122 )
Investments — Affiliated     2,644       (2,254 )     922       988  
Futures contracts     (128,587 )     (1,312,276 )     (64,397 )     (241,612 )
Foreign currency translations     (391,344 )     37,849       (76,072 )     (182,651 )
Net change in unrealized appreciation (depreciation)     (219,894,032 )     (278,234,063 )     13,800,366       (119,840,397 )
Net realized and unrealized gain (loss)     (274,420,302 )     (180,154,039 )     1,001,555       (147,514,940 )
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS   $ (245,119,790 )   $ (131,591,563 )   $ 3,667,223     $ (136,283,984 )
                                 
(a) Net of securities lending income tax paid of   $ 19,090     $     $     $  
(b) Net of foreign capital gain tax of   $ 98,006     $     $ 7,266     $  
(c) Net of deferred foreign capital gain tax of   $ (1,319,924 )   $ 512,133     $ 175,542     $ (66,834 )

 

See notes to financial statements

 

40 2 0 2 0  i S h a r e s  S e m i - A n n u a l  R e p o r t  t o  S h a r e h o l d e r s

 

 

 

 

Statements of Operations (unaudited) (continued)

Six Months Ended February 29, 2020

 

      iShares
MSCI
Emerging
Markets ex
China ETF
 
         
INVESTMENT INCOME        
Dividends — Unaffiliated   $ 342,567  
Dividends — Affiliated     4,197  
Non-cash dividends — Unaffiliated     292,385  
Foreign taxes withheld     (42,280 )
Other foreign taxes     (50 )
Total investment income     596,819  
         
EXPENSES        
Investment advisory fees     74,324  
Total expenses     74,324  
         
Less:        
Investment advisory fees waived     (50,677 )
Total expenses after fees waived     23,647  
Net investment income     573,172  
         
REALIZED AND UNREALIZED GAIN (LOSS)        
Net realized gain (loss) from:        
Investments — Unaffiliated     (172,069 )
Investments — Affiliated     (2,950 )
Foreign currency transactions     1,027  
Net realized loss     (173,992 )
         
Net change in unrealized appreciation (depreciation) on:        
Investments — Unaffiliated     (975,377 )
Investments — Affiliated     (66,848 )
Foreign currency translations     (5,538 )
Net change in unrealized appreciation (depreciation)     (1,047,763 )
Net realized and unrealized loss     (1,221,755 )
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS   $ (648,583 )

 

See notes to financial statements.


 

F i n a n c i a l  S t a t e m e n t s 41

 

 

 

 

Statements of Changes in Net Assets

 

    iShares
Edge MSCI Min Vol Emerging Markets ETF
(Consolidated)
    iShares
Edge MSCI Min Vol Global ETF
 
    Six Months Ended
02/29/20
(unaudited)
    Year Ended
08/31/19
    Six Months Ended
02/29/20
(unaudited)
    Year Ended
08/31/19
 
                         
INCREASE (DECREASE) IN NET ASSETS                                
                                 
OPERATIONS                                
Net investment income   $ 29,300,512     $ 142,041,168     $ 48,562,476     $ 98,989,651  
Net realized gain (loss)     (54,526,270 )     (100,762,003 )     98,080,024       52,580,087  
Net change in unrealized appreciation (depreciation)     (219,894,032 )     (100,503,198 )     (278,234,063 )     301,773,485  
Net increase (decrease) in net assets resulting from operations     (245,119,790 )     (59,224,033 )     (131,591,563 )     453,343,223  
                                 
DISTRIBUTIONS TO SHAREHOLDERS(a)                                
Decrease in net assets resulting from distributions to shareholders     (87,628,375 )     (130,514,441 )     (83,487,378 )     (93,156,234 )
                                 
CAPITAL SHARE TRANSACTIONS                                
Net increase (decrease) in net assets derived from capital share transactions     (251,898,750 )     940,306,068       252,279,396       1,573,133,776  
                                 
NET ASSETS                                
Total increase (decrease) in net assets     (584,646,915 )     750,567,594       37,200,455       1,933,320,765  
Beginning of period     5,417,264,520       4,666,696,926       5,275,720,467       3,342,399,702  
End of period   $ 4,832,617,605     $ 5,417,264,520     $ 5,312,920,922     $ 5,275,720,467  

 

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

 

See notes to financial statements.

 

42 2 0 2 0  i S h a r e s  S e m i - A n n u a l  R e p o r t  t o  S h a r e h o l d e r s

 

 

 

 

Statements of Changes in Net Assets (continued)

 

    iShares
Edge MSCI Multifactor Emerging Markets
ETF
    iShares
ESG MSCI EM ETF
 
    Six Months Ended
02/29/20
(unaudited)
    Year Ended
08/31/19
    Six Months Ended
02/29/20
(unaudited)
    Year Ended
08/31/19
 
                         
INCREASE (DECREASE) IN NET ASSETS                                
                                 
OPERATIONS                                
Net investment income   $ 2,665,668     $ 11,186,154     $ 11,230,956     $ 13,880,674  
Net realized loss     (12,798,811 )     (36,746,895 )     (27,674,543 )     (21,353,323 )
Net change in unrealized appreciation (depreciation)     13,800,366       (4,230,105 )     (119,840,397 )     (6,895,209 )
Net increase (decrease) in net assets resulting from operations     3,667,223       (29,790,846 )     (136,283,984 )     (14,367,858 )
                                 
DISTRIBUTIONS TO SHAREHOLDERS(a)                                
Decrease in net assets resulting from distributions to shareholders     (7,432,603 )     (9,249,430 )     (15,708,116 )     (10,952,741 )
                                 
CAPITAL SHARE TRANSACTIONS                                
Net increase in net assets derived from capital share transactions     50,117,458       159,543,885       1,508,805,345       368,110,977  
                                 
NET ASSETS                                
Total increase in net assets     46,352,078       120,503,609       1,356,813,245       342,790,378  
Beginning of period     411,574,511       291,070,902       672,543,077       329,752,699  
End of period   $ 457,926,589     $ 411,574,511     $ 2,029,356,322     $ 672,543,077  

 

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

 

See notes to financial statements.

 

F i n a n c i a l  S t a t e m e n t s 43

 

 

 

 

Statements of Changes in Net Assets (continued)

 

    iShares
MSCI Emerging Markets ex China ETF
 
    Six Months
Ended
02/29/20
(unaudited)
    Year Ended
08/31/19
 
             
INCREASE (DECREASE) IN NET ASSETS                
                 
OPERATIONS                
Net investment income   $ 573,172     $ 538,662  
Net realized loss     (173,992 )     (406,140 )
Net change in unrealized appreciation (depreciation)     (1,047,763 )     (947,735 )
Net decrease in net assets resulting from operations     (648,583 )     (815,213 )
                 
DISTRIBUTIONS TO SHAREHOLDERS(a)                
Decrease in net assets resulting from distributions to shareholders     (855,829 )     (321,357 )
                 
CAPITAL SHARE TRANSACTIONS                
Net increase in net assets derived from capital share transactions     5,049,297       18,966,426  
                 
NET ASSETS                
Total increase in net assets     3,544,885       17,829,856  
Beginning of period     27,748,461       9,918,605  
End of period   $ 31,293,346     $ 27,748,461  

 

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

 

See notes to financial statements.

 

44 2 0 2 0  i S h a r e s  S e m i - A n n u a l  R e p o r t  t o  S h a r e h o l d e r s

 

 

 

 

Financial Highlights

(For a share outstanding throughout each period)

 

    iShares Edge MSCI Min Vol Emerging Markets ETF
(Consolidated)
 
    Six Months Ended
02/29/20
(unaudited)
    Year Ended
08/31/19
    Year Ended
08/31/18
    Year Ended
08/31/17
    Year Ended
08/31/16
    Year Ended
08/31/15
 
                                     
Net asset value, beginning of period   $ 56.84     $ 59.22     $ 58.01     $ 53.40     $ 50.98     $ 62.47  
Net investment income(a)     0.31       1.57       1.49       1.28       1.57       1.58  
Net realized and unrealized gain (loss)(b)     (3.01 )     (2.46 )     1.23       4.48       2.13       (11.65 )
Net increase (decrease) from investment operations     (2.70 )     (0.89 )     2.72       5.76       3.70       (10.07 )
                                                 
Distributions(c)                                                
From net investment income     (0.92 )     (1.49 )     (1.51 )     (1.15 )     (1.28 )     (1.42 )
Total distributions     (0.92 )     (1.49 )     (1.51 )     (1.15 )     (1.28 )     (1.42 )
                                                 
Net asset value, end of period   $ 53.22     $ 56.84     $ 59.22     $ 58.01     $ 53.40     $ 50.98  
                                                 
Total Return                                                
Based on net asset value     (4.88 )%(d)     (1.44 )%(e)     4.70 %     11.11 %     7.48 %     (16.32 )%
                                                 
Ratios to Average Net Assets                                                
Total expenses     0.70 %(f)     0.68 %     0.67 %     0.69 %     0.71 %     0.69 %
Total expenses after fees waived     0.25 %(f)     0.25 %     0.25 %     0.25 %     0.25 %     0.25 %
Net investment income     1.07 %(f)     2.71 %     2.47 %     2.40 %     3.12 %     2.71 %
                                                 
Supplemental Data                                                
Net assets, end of period (000)   $ 4,832,618     $ 5,417,265     $ 4,666,697     $ 4,037,428     $ 4,379,041     $ 2,462,357  
Portfolio turnover rate(g)     12 %(d)     24 %     22 %     23 %     23 %     28 %

 

(a) Based on average shares outstanding.

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

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

(d) Not annualized.

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

(f) Annualized.

(g) Portfolio turnover rate excludes in-kind transactions.

 

See notes to financial statements.

 

F i n a n c i a l  H i g h l i g h t s 45

 

 

 

 

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    iShares Edge MSCI Min Vol Global ETF  
    Six Months Ended
02/29/20
(unaudited)
    Year Ended
08/31/19
    Year Ended
08/31/18
    Year Ended
08/31/17
    Year Ended
08/31/16
    Year Ended
08/31/15
 
                                     
Net asset value, beginning of period   $ 93.54     $ 87.04     $ 81.13     $ 75.82     $ 67.59     $ 68.25  
Net investment income(a)     0.83       2.16       1.82       1.84       1.79       1.70  
Net realized and unrealized gain (loss)(b)     (3.06 )     6.36       5.85       5.40       8.07       (0.89 )
Net increase (decrease) from investment operations     (2.23 )     8.52       7.67       7.24       9.86       0.81  
                                                 
Distributions(c)                                                
From net investment income     (1.41 )     (2.02 )     (1.76 )     (1.93 )     (1.63 )     (1.47 )
Total distributions     (1.41 )     (2.02 )     (1.76 )     (1.93 )     (1.63 )     (1.47 )
                                                 
Net asset value, end of period   $ 89.90     $ 93.54     $ 87.04     $ 81.13     $ 75.82     $ 67.59  
                                                 
Total Return                                                
Based on net asset value     (2.46 )%(d)     9.99 %     9.56 %     9.75 %     14.76 %     1.15 %
                                                 
Ratios to Average Net Assets                                                
Total expenses     0.31 %(e)     0.32 %     0.31 %     0.32 %     0.32 %     0.33 %
Total expenses after fees waived     0.20 %(e)     0.20 %     0.20 %     0.20 %     0.20 %     0.20 %
Net investment income     1.74 %(e)     2.45 %     2.17 %     2.40 %     2.49 %     2.41 %
                                                 
Supplemental Data                                                
Net assets, end of period (000)   $ 5,312,921     $ 5,275,720     $ 3,342,400     $ 3,675,374     $ 3,267,688     $ 2,115,632  
Portfolio turnover rate(f)     11 %(d)     21 %     23 %     24 %     24 %     22 %

 

(a) Based on average shares outstanding.

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

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

(d) Not annualized.

(e) Annualized.

(f) Portfolio turnover rate excludes in-kind transactions.

 

See notes to financial statements.

 

46 2 0 2 0  i S h a r e s  S e m i - A n n u a l  R e p o r t  t o  S h a r e h o l d e r s

 

 

 

 

Financial Highlights (continued)

 (For a share outstanding throughout each period)

 

    iShares Edge MSCI Multifactor Emerging Markets ETF
    Six Months Ended
02/29/20
(unaudited)
    Year Ended
08/31/19
    Year Ended
08/31/18
    Year Ended
08/31/17
    Period From
12/08/15(a)
to 08/31/16
 
                               
Net asset value, beginning of period   $ 40.35     $ 44.78     $ 46.04     $ 37.46     $ 33.82  
Net investment income(b)     0.26       1.47       1.39       0.91       1.27  
Net realized and unrealized gain (loss)(c)     0.66       (4.72 )     (1.63 )     8.53       2.50  
Net increase (decrease) from investment operations     0.92       (3.25 )     (0.24 )     9.44       3.77  
                                         
Distributions(d)                                        
From net investment income     (0.75 )     (1.18 )     (1.02 )     (0.86 )     (0.13 )
Total distributions     (0.75 )     (1.18 )     (1.02 )     (0.86 )     (0.13 )
                                         
Net asset value, end of period   $ 40.52     $ 40.35     $ 44.78     $ 46.04     $ 37.46  
                                         
Total Return                                        
Based on net asset value     2.13 %(e)     (7.16 )%     (0.65 )%     25.80 %     11.16 %(e)
                                         
Ratios to Average Net Assets                                        
Total expenses     0.45 %(f)     0.45 %     0.45 %(g)     0.50 %(g)     0.65 %(f)(g)
Total expenses after fees waived     0.45 %(f)     0.45 %     0.42 %(g)     0.42 %(g)     0.49 %(f)(g)
Net investment income     1.21 %(f)     3.55 %     2.87 %     2.24 %     4.91 %(f)
                                         
Supplemental Data                                        
Net assets, end of period (000)   $ 457,927     $ 411,575     $ 291,071     $ 82,873     $ 29,969  
Portfolio turnover rate(h)     24 %(e)     53 %     39 %(i)     36 %(i)     11 %(e)(i)

 

(a) Commencement of operations.

(b) Based on average shares outstanding.

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

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

(e) Not annualized.

(f) Annualized.

(g) The Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying fund in which the Fund is invested. This ratio does not include these indirect fees and expenses.

(h) Portfolio turnover rate excludes in-kind transactions.

(i) Portfolio turnover rate excludes the portfolio activity of the underlying fund in which the Fund is invested. See the underlying fund’s financial highlights for its respective portfolio turnover rates.

 

See notes to financial statements.

 

F i n a n c i a l   H i g h l i g h t s 47

 

 

 

 

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    iShares ESG MSCI EM ETF
    Six Months Ended
02/29/20
(unaudited)
    Year Ended
08/31/19
    Year Ended
08/31/18(a)
    Year Ended
08/31/17(a)
    Period From
06/28/16(a)(b)
to 08/31/16
 
                               
Net asset value, beginning of period   $ 32.03     $ 33.65     $ 34.58     $ 28.23     $ 25.19  
Net investment income(c)     0.37       0.91       0.94       0.85       0.16  
Net realized and unrealized gain (loss)(d)     0.74       (1.85 )     (1.17 )     5.81       2.88  
Net increase (decrease) from investment operations     1.11       (0.94 )     (0.23 )     6.66       3.04  
                                         
Distributions(e)                                        
From net investment income     (0.67 )     (0.68 )     (0.70 )     (0.31 )      
Total distributions     (0.67 )     (0.68 )     (0.70 )     (0.31 )      
                                         
Net asset value, end of period   $ 32.47     $ 32.03     $ 33.65     $ 34.58     $ 28.23  
                                         
Total Return                                        
Based on net asset value     3.32 %(f)     (2.76 )%     (0.72 )%     23.75 %     12.09 %(f)
                                         
Ratios to Average Net Assets                                        
Total expenses     0.25 %(g)     0.25 %     0.25 %     0.42 %     0.45 %(g)
Net investment income     2.12 %(g)     2.76 %     2.63 %     2.73 %     3.26 %(g)
                                         
Supplemental Data                                        
Net assets, end of period (000)   $ 2,029,356     $ 672,543     $ 329,753     $ 96,812     $ 5,645  
Portfolio turnover rate(h)     18 %(f)     34 %     45 %     29 %     9 %(f)

 

(a) Per share amounts reflect a two-for-one stock split effective after the close of trading on May 24, 2018.

(b) Commencement of operations.

(c) Based on average shares outstanding.

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

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

(f) Not annualized.

(g) Annualized.

(h) Portfolio turnover rate excludes in-kind transactions.

 

See notes to financial statements.

 

48 2 0 2 0 i   S h a r e s  S e m i - A n n u a l  R e p o r t  t o  S h a r e h o l d e r s

 

 

 

 

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    iShares MSCI Emerging Markets ex China ETF  
    Six Months Ended
02/29/20
(unaudited)
    Year Ended
08/31/19
    Year Ended
08/31/18
    Period From
07/18/17
to 08/31/17

(a)

  

                         
Net asset value, beginning of period   $ 46.25     $ 49.59     $ 51.14     $ 50.22  
Net investment income(b)     0.93       1.62       1.10       0.13  
Net realized and unrealized gain (loss)(c)     (1.05 )     (3.83 )     (1.80 )     0.79  
Net increase (decrease) from investment operations     (0.12 )     (2.21 )     (0.70 )     0.92  
                                 
Distributions(d)                                
From net investment income     (1.43 )     (1.13 )     (0.85 )      
Total distributions     (1.43 )     (1.13 )     (0.85 )      
                                 
Net asset value, end of period   $ 44.70     $ 46.25     $ 49.59     $ 51.14  
                                 
Total Return                                
Based on net asset value     (0.59 )%(e)     (4.42 )%     (1.41 )%     1.83 %(e)
                                 
Ratios to Average Net Assets                                
Total expenses(f)     0.49 %(g)     0.49 %     0.49 %     0.49 %(g)
Total expenses after fees waived(f)     0.16 %(g)     0.26 %     0.41 %     0.41 %(g)
Net investment income     3.78 %(g)     3.38 %     2.09 %     2.07 %(g)
                                 
Supplemental Data                                
Net assets, end of period (000)   $ 31,293     $ 27,748     $ 9,919     $ 10,227  
Portfolio turnover rate(h)(i)     7 %(e)     10 %     9 %     0 %(e)(j)

 

(a) Commencement of operations.

(b) Based on average shares outstanding.

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

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

(e) Not annualized.

(f) The Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying fund in which the Fund is invested. This ratio does not include these indirect fees and expenses.

(g) Annualized.

(h) Portfolio turnover rate excludes in-kind transactions.

(i) Portfolio turnover rate excludes the portfolio activity of the underlying fund in which the Fund is invested. See the underlying fund’s financial highlights for its respective portfolio turnover rates.

(j) Rounds to less than 1%.

 

See notes to financial statements.

 

F i n a n c i a l  H i g h l i g h t s 49

 

 

 

 

Notes to Financial Statements (unaudited)

 

1. ORGANIZATION

 

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

 

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

 

      Diversification  
iShares ETF     Classification  
Edge MSCI Min Vol Emerging Markets     Diversified  
Edge MSCI Min Vol Global     Diversified  
Edge MSCI Multifactor Emerging Markets     Diversified  
ESG MSCI EM     Diversified  
MSCI Emerging Markets ex China     Non-diversified  

 

Basis of Consolidation: The accompanying consolidated financial statements for the iShares Edge MSCI Min Vol Emerging Markets ETF includes the accounts of its subsidiary in the Republic of Mauritius, which is a wholly-owned subsidiary (the “Subsidiary”) of the Fund that invests in Indian securities. Through this investment structure, the Fund expects to obtain certain benefits under a current tax treaty between Mauritius and India. Intercompany accounts and transactions, if any, have been eliminated.

 

2. SIGNIFICANT ACCOUNTING POLICIES

 

The following significant accounting policies are consistently followed by each Fund in the preparation of its financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies.

 

InvestmentTransactions and Income Recognition: Investment transactions are accounted for on trade date. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recognized on the ex-dividend date, net of any foreign taxes withheld at source. Any taxes withheld that are reclaimable from foreign tax authorities are reflected in tax reclaims receivable. Distributions received by the Funds may include a return of capital that is estimated by management. Such amounts are recorded as a reduction of the cost of investments or reclassified to capital gains. Upon notification from issuers, some of the dividend income received from a real estate investment trust may be re-designated as a return of capital or capital gain. Non-cash dividends, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Interest income, including amortization and accretion of premiums and discounts on debt securities, and payment- in-kind interest income, if any, are recognized daily on the accrual basis.

 

Foreign CurrencyTranslation: The accounting records of the Funds are maintained in U.S. dollars. Foreign currencies, as well as investment securities and other assets and liabilities denominated in non-U.S. currencies are translated to U.S. dollars using prevailing market rates as quoted by one or more data service providers. Purchases and sales of investments, income receipts and expense payments are translated into U.S. dollars on the respective dates of such transactions.

 

Each Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of investments. Such fluctuations are reflected by the Funds as a component of net realized and unrealized gain (loss) from investments for financial reporting purposes. Each Fund reports realized currency gain (loss) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for U.S. federal income tax purposes.

 

Foreign Taxes: The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which each Fund invests. These foreign taxes, if any, are paid by each Fund and are reflected in its statement of operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of February 29, 2020, if any, are disclosed in the statement of assets and liabilities.

 

The iShares Edge MSCI Min Vol Emerging Markets ETF conducts its investment activities in India through its Subsidiary and expects to obtain benefits under the Double Tax Avoidance Agreement (“DTAA”) between India and Mauritius. In order to be eligible to claim benefits under the DTAA, the Subsidiary must have commercial substance, on an annual basis, to satisfy certain tests and conditions, including the establishment and maintenance of valid tax residence in Mauritius and related requirements. The Fund has obtained a current tax residence certificate issued by the Mauritian Revenue Authorities and the same covers the period of any exists.

 

Based upon current interpretation and practice of the current tax laws in India and Mauritius and the DTAA, the Subsidiary is subject to tax in Mauritius on its net income at the rate of 15%. However, the Subsidiary is entitled to a tax credit equivalent to the higher of the actual foreign tax incurred or 80% of the Mauritius tax on its foreign source income, thus reducing its maximum effective tax rate to 3% up to June 30, 2021. After June 30, 2021, under the new tax regime and subject to meeting the necessary substance requirements as required under the Financial Services Act 2007 (as amended by the Finance Act 2018) and such guidelines issued by the FSC, the Subsidiary is entitled to either (a) a foreign tax credit equivalent to the actual foreign tax suffered on its foreign income against the Subsidiary’s tax liability computed at 15% on such income, or (b) a partial exemption of 80% of some of the income derived, including interest income or foreign source dividends. Taxes on income, if any, are paid by the

 

50 2 0 2 0  i S h a r e s  S e m i - A n n u a l  R e p o r t  t o  S h a r e h o l d e r s

 

 

 

 

Notes to Financial Statements (unaudited) (continued)

 

Subsidiary and are disclosed in its consolidated statement of operations. Any dividends paid by the Subsidiary to its Fund are not subject to tax in Mauritius. The Subsidiary is currently exempt from tax in Mauritius on any gains from the sale of securities.

 

The DTAA provides that capital gains will be taxable in India with respect to the sale of shares acquired on or after April 1, 2017. Capital gains arising from shares acquired before April 1, 2017, regardless of when they are sold, will continue to be exempt from taxation under the amended DTAA, assuming requirements for eligibility under the DTAA are satisfied.

 

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

 

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

 

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

 

3.       INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

 

Investment Valuation Policies: Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date should the reporting period end on a day that the Fund’s listing exchange is not open. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. A fund determines the fair value of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Directors of the Company (the “Board”). The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.

 

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

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

Exchange-traded funds and closed-end funds traded on a recognized securities exchange are valued at that day’s last traded price or official closing price, as applicable, on the exchange where the fund is primarily traded. Funds traded on a recognized exchange for which there were no sales on that day may be valued at the last traded price.

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

Futures contract notional values are determined based on that day’s last reported settlement price on the exchange where the contract is traded.

 

If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of an investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with policies approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee include market approach, income approach and the cost approach. Valuation techniques used under these approaches take into consideration inputs that include but are not limited to (i) attributes specific to the investment; (ii) the principal market for the investment; (iii) the customary participants in the principal market for the investment; (iv) data assumptions by market participants for the investment, if reasonably available; (v) quoted prices for similar investments in active markets; and (vi) other inputs, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or default rates.

 

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.

 

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

 

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

Level 1 – Unadjusted price quotations in active markets for identical assets or liabilities;

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

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

 

N o t e s  t o  F i n a n c i a l  S t a t e m e n t s 51

 

 

 

 

Notes to Financial Statements (unaudited) (continued)

 

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgement exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The fair value hierarchy for each Fund’s investments is included in its schedule of investments. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

 

4.       SECURITIES AND OTHER INVESTMENTS

 

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

 

As of February 29, 2020, any securities on loan were collateralized by cash and/or U.S. government obligations. Cash collateral received was invested in money market funds managed by BlackRock FundAdvisors (“BFA”), the Funds’ investment adviser, or its affiliates and is disclosed in the schedules of investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan for each Fund, if any, are also disclosed in its schedule of investments. The market value of any securities on loan as of February 29, 2020 and the value of the related cash collateral are disclosed in the statements of assets and liabilities.

 

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

 

The following table is a summary of the securities lending agreements by counterparty which are subject to offset under an MSLA as of February 29, 2020:

 

iShares ETF and Counterparty   Market Value of
Securities on Loan
    Cash Collateral
Received(a)
    Non-Cash Collateral
Received
    Net Amount  
Edge MSCI Min Vol Emerging Markets                        
Citigroup Global Markets Inc.   $ 2,748,044     $ 2,748,044     $     $  
Credit Suisse Securities (USA) LLC     1,544,726       1,544,726              
Goldman Sachs & Co.     2,016,294       2,016,294              
JPMorgan Securities LLC     4,528,769       4,528,769              
Macquarie Bank Limited     2,084,181       2,084,181              
Morgan Stanley & Co. International PLC     114,745       114,745              
Morgan Stanley & Co. LLC     9,551,129       9,551,129              
UBS Securities LLC     12,347,890       12,347,890              
    $ 34,935,778     $ 34,935,778     $     $  
Edge MSCI Min Vol Global                                
BofA Securities, Inc.   $ 1,802,696     $ 1,802,696     $     $  
Goldman Sachs & Co.     2,340,304       2,340,304              
JPMorgan Securities LLC     3,323,200       3,323,200              
Morgan Stanley & Co. International PLC     1,938,439       1,938,439              
Morgan Stanley & Co. LLC     1,086,948       1,086,948              
    $ 10,491,587     $ 10,491,587     $     $  
Edge MSCI Multifactor Emerging Markets                                
Citigroup Global Markets Inc.   $ 149,540     $ 149,540     $     $  
Credit Suisse Securities (USA) LLC     620,591       620,591              
JPMorgan Securities LLC     733,112       733,112              
Morgan Stanley & Co. LLC     1,094,364       1,094,364              
TD Prime Services LLC     12,188       12,188              
    $ 2,609,795     $ 2,609,795     $     $  

 

52 2 0 2 0  i S h a r e s  S e m i - A n n u a l  R e p o r t  t o  S h a r e h o l d e r s

 

 

 

 

Notes to Financial Statements (unaudited) (continued)

 

iShares ETF and Counterparty   Market Value of
Securities on Loan
    Cash Collateral
Received(a)
    Non-Cash Collateral
Received
    Net Amount  
ESG MSCI EM                        
Citigroup Global Markets Inc.   $ 2,907     $ 2,907     $     $  
Credit Suisse Securities (USA) LLC     3,459,882       3,459,882              
Jefferies LLC     156,772       156,772              
JPMorgan Securities LLC     3,348,939       3,348,939              
Macquarie Bank Limited     875,657       875,657              
Morgan Stanley & Co. LLC     644,128       644,128              
SG Americas Securities LLC     1,836,251       1,836,251              
UBS AG     447,157       447,157              
Wells Fargo Bank, National Association     207,846       202,608             (5,238 )(b)
    $ 10,979,539     $ 10,974,301     $     $ (5,238 )

 

(a) Collateral received in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by each Fund is disclosed in the Fund’s statement of assets and liabilities.

(b) 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 a counterparty.

 

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

 

5.       DERIVATIVE FINANCIAL INSTRUMENTS

 

Futures Contracts: Each Fund’s use of futures contracts is generally limited to cash equitization. This involves the use of available cash to invest in index futures contracts in order to gain exposure to the equity markets represented in or by the Fund’s underlying index and is intended to allow the Fund to better track its underlying index. Futures contracts are standardized, exchange-traded agreements to buy or sell a specific quantity of an underlying instrument at a set price on a future date. Depending on the terms of a contract, a futures contract is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date.

 

Upon entering into a futures contract, a fund is required to pledge to the executing broker which holds segregated from its own assets, an amount of cash, U.S. government securities or other high-quality debt and equity securities equal to the minimum initial margin requirements of the exchange on which the contract is traded. Securities deposited as initial margin, if any, are designated in the schedule of investments and cash deposited, if any, is shown as cash pledged for futures contracts in the statement of assets and liabilities.

 

Pursuant to the contract, a fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation or depreciation and, if any, shown as variation margin receivable or payable on futures contracts in the statement of assets and liabilities. When the contract is closed, a realized gain or loss is recorded in the statement of operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. Losses may arise if the notional value of a futures contract decreases due to an unfavorable change in the market rates or values of the underlying instrument during the term of the contract or if the counterparty does not perform under the contract. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and the assets underlying such contracts.

 

6.       INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

 

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

 

N o t e s   t o   F i n a n c i a l  S t a t e m e n t s 53

 

 

 

 

Notes to Financial Statements (unaudited) (continued)

 

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

 

Aggregate Average Daily Net Assets   Investment Advisory Fee  
First $14 billion     0.75 %
Over $14 billion, up to and including $28 billion     0.68  
Over $28 billion, up to and including $42 billion     0.61  
Over $42 billion, up to and including $56 billion     0.54  
Over $56 billion, up to and including $70 billion     0.47  
Over $70 billion, up to and including $84 billion     0.41  
Over $84 billion     0.35  

 

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

 

Aggregate Average Daily Net Assets   Investment Advisory Fee  
First $30 billion     0.350 %
Over $30 billion, up to and including $60 billion     0.320  
Over $60 billion, up to and including $90 billion     0.280  
Over $90 billion, up to and including $120 billion     0.252  
Over $120 billion, up to and including $150 billion     0.227  
Over $150 billion     0.204  

 

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

 

iShares ETF   Investment Advisory Fee  
Edge MSCI Multifactor Emerging Markets .     0.45 %
ESG MSCI EM     0.25  
MSCI Emerging Markets ex China     0.49  

 

The Subsidiary has entered into a separate contract with BFA under which BFA provides investment advisory services to the Subsidiary but does not receive separate compensation from the Subsidiary for providing it with such services. The Subsidiary has also entered into separate arrangements that provide for the provision of other services to the Subsidiary (including administrative, custody, transfer agency and other services), and BFA pays the costs and expenses related to the provision of those services.

 

Expense Waivers: A fund may incur its pro rata share of fees and expenses attributable to its investments in other investment companies (“acquired fund fees and expenses”). The total of the investment advisory fee and any other fund expenses are a fund’s total annual operating expenses.

 

For each of the iShares Edge MSCI Min Vol Emerging Markets and iShares Edge MSCI Min Vol Global ETFs, BFA has contractually agreed to waive a portion of it investment advisory fee for each Fund through December 31, 2023 in order to limit each Fund’s total annual operating expenses after fee waiver to 0.25% and 0.20%, respectively, of average daily net assets.

 

For each of the iShares Edge MSCI Multifactor Emerging Markets and iShares MSCI Emerging Markets ex China ETFs, BFA has contractually agreed to waive a portion of its investment advisory fee for each Fund through December 31, 2021 and December 31, 2022, respectively, in an amount equal to the acquired fund fees and expenses, if any, attributable to each Fund’s investments in other iShares funds.

 

For the six months ended ended February 29, 2020, BFA has voluntarily waived a portion of its investment advisory fee for the iShares MSCI Emerging Markets ex China ETF in the amount of $37,920.

 

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

 

Securities Lending: The U.S. Securities and Exchange Commission (the “SEC”) has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan in a money market fund managed by BFA, or its affiliates, however, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees each Fund bears to an annual rate of 0.04% (the “collateral investment fees”). Securities lending income is equal to the total of income earned from the reinvestment of cash collateral (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. Each Fund retains a portion of securities lending income and remits the remaining portion to BTC as compensation for its services as securities lending agent.

 

Pursuant to the current securities lending agreement, each Fund retains 82% of securities lending income (which excludes collateral investment fees) and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

 

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Notes to Financial Statements (unaudited) (continued)

 

In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across all 1940 Act iShares exchange-traded funds (the “iShares ETF Complex”) in that calendar year exceeds a specified threshold, each Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year 85% of securities lending income (which excludes collateral investment fees), and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

 

The share of securities lending income earned by each Fund is shown as securities lending income – affiliated – net in its statement of operations. For the six months ended February 29, 2020, the Funds paid BTC the following amounts for securities lending agent services:

 

    Fees Paid  
iShares ETF   to BTC  
Edge MSCI Min Vol Emerging Markets   $ 45,445  
Edge MSCI Min Vol Global     26,476  
Edge MSCI Multifactor Emerging Markets     5,708  
ESG MSCI EM     42,865  

 

Officers and Directors: Certain officers and/or directors of the Company are officers and/or directors of BlackRock or its affiliates.

 

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

 

For the six months ended February 29, 2020, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:

 

iShares ETF   Purchases     Sales     Net Realized
Gain (Loss)
 
Edge MSCI Min Vol Emerging Markets   $ 2,426,159     $ 51,741,747     $ 8,993,891  
Edge MSCI Min Vol Global     98,290,005       69,357,082       (2,784,207 )
Edge MSCI Multifactor Emerging Markets     769,993       2,678,760       (1,224,009 )

 

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

 

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

 

7.       PURCHASES AND SALES

 

For the six months ended February 29, 2020, purchases and sales of investments, excluding in-kind transactions and short-term investments, were as follows:

 

iShares ETF   Purchases     Sales  
Edge MSCI Min Vol Emerging Markets   $ 628,785,122     $ 819,720,098  
Edge MSCI Min Vol Global     899,452,597       597,767,069  
Edge MSCI Multifactor Emerging Markets     142,697,696       102,835,180  
ESG MSCI EM     1,278,790,513       204,331,741  
MSCI Emerging Markets ex China     4,622,178       2,195,203  

 

For the six months ended February 29, 2020, in-kind transactions were as follows:

 

    In-kind     In-kind  
iShares ETF   Purchases     Sales  
Edge MSCI Min Vol Emerging Markets   $ 5,614,503     $ 96,504,260  
Edge MSCI Min Vol Global     366,341,850       449,374,350  
Edge MSCI Multifactor Emerging Markets     11,625,649       6,332,542  
ESG MSCI EM     422,574,667        
MSCI Emerging Markets ex China     2,006,068        

 

8.       INCOME TAX INFORMATION

 

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

 

N o t e s  t o  F i n a n c i a l  S t a t e m e n t s 55

 

 

 

 

Notes to Financial Statements (unaudited) (continued)

 

Management has analyzed tax laws and regulations and their application to the Funds as of February 29, 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.

 

As of August 31, 2019, the Funds had non-expiring capital loss carryforwards available to offset future realized capital gains as follows:

 

iShares ETF   Non-Expiring  
Edge MSCI Min Vol Emerging Markets   $ 682,796,848  
Edge MSCI Min Vol Global     107,300,323  
Edge MSCI Multifactor Emerging Markets     35,809,876  
ESG MSCI EM     18,084,612  
MSCI Emerging Markets ex China     353,754  

 

A fund may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” Such fund may elect to mark-to-market annually the shares of each passive foreign investment company and would be required to distribute to shareholders any such marked-to-market gains.

 

As of February 29, 2020, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:

 

iShares ETF   Tax Cost     Gross Unrealized
Appreciation
    Gross Unrealized
Depreciation
    Net Unrealized Appreciation
(Depreciation)
 
Edge MSCI Min Vol Emerging Markets   $ 4,735,729,605     $ 711,872,915     $ (579,115,099 )   $ 132,757,816  
Edge MSCI Min Vol Global     4,889,223,639       688,779,353       (270,909,711 )     417,869,642  
Edge MSCI Multifactor Emerging Markets     478,515,522       34,730,280       (54,486,178 )     (19,755,898 )
ESG MSCI EM     2,189,380,721       47,555,298       (200,161,971 )     (152,606,673 )
MSCI Emerging Markets ex China     33,474,468       1,726,815       (4,006,738 )     (2,279,923 )

 

9.       LINE OF CREDIT

 

The Funds, along with certain other iShares funds, are parties to a $300 million credit agreement with State Street Bank and Trust Company, which expires on October 21, 2020. The line of credit may be used for temporary or emergency purposes, including redemptions, settlement of trades and rebalancing of portfolio holdings. The credit agreement has the following terms: a commitment fee of 0.20% per annum on the unused portion of the credit agreement and interest at a rate equal to the higher of (a) the one-month LIBOR (not less than zero) plus 1.00% per annum or (b) the U.S. Federal Funds rate (not less than zero) plus 1.00% per annum on amounts borrowed. The commitment fee is allocated to each fund participating in the credit agreement based on each fund’s pro-rata share of the aggregate average daily value of assets invested in local securities of certain foreign markets.

 

The iShares MSCI Emerging Markets ex China ETF did not borrow under the credit agreement during the six months ended February 29, 2020.

 

For the six months ended February 29, 2020, the maximum amount borrowed, the average daily borrowing and the weighted average interest rate, if any, under the credit agreement were as follows:

 

iShares ETF   Maximum
Amount
Borrowed
    Average
Borrowing
    Weighted
Average
Interest Rates
 
Edge MSCI Min Vol Emerging Markets   $ 19,851,000     $ 763,500       2.70 %
Edge MSCI Min Vol Global     18,166,000       698,692       2.70  
Edge MSCI Multifactor Emerging Markets     12,771,000       491,192       2.70  
ESG MSCI EM     4,568,484       204,038       2.70  

 

10. PRINCIPAL RISKS

 

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

 

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

 

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Notes to Financial Statements (unaudited) (continued)

 

Market Risk: Market risk arises mainly from uncertainty about future values of financial instruments influenced by price, currency and interest rate movements. It represents the potential loss a fund may suffer through holding market positions in the face of market movements. A fund is exposed to market risk by its investment in equity, fixed income and/or financial derivative instruments or by its investment in underlying funds. The fair value of securities held by a fund may decline due to general market conditions, economic trends or events that are not specifically related to the issuers of the securities including local, regional or global political, social or economic instability or to factors that affect a particular industry or group of industries. 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. The extent of a fund’s exposure to market risk is the market value of the investments held as shown in the fund’s schedule of investments.

 

Investing in the securities of non-U.S. issuers involves certain considerations and risks not typically associated with securities of U.S. issuers. Such risks include, but are not limited to: differences in accounting, auditing and financial reporting standards; more substantial governmental involvement in the economy; higher inflation rates, greater social, economic and political uncertainties; possible nationalization or expropriation of assets; less availability of public information about issuers; imposition of withholding or other taxes; higher transaction and custody costs and delays in settlement procedures; and lower level of regulation of the securities markets and issuers. Non-U.S. securities may be less liquid, more difficult to value, and have greater price volatility due to exchange rate fluctuations. These and other risks are heightened for investments in issuers from countries with less developed capital markets.

 

Changes in market interest rates or economic conditions may affect the value and/or liquidity of fixed income investments. Interest rate risk is the risk that prices of bonds and other fixed-income securities will decrease as interest rates rise and increase as interest rates fall. Securities with longer durations tend to be more sensitive to interest rate changes, usually making their prices more volatile than those of securities with shorter durations. Given the environment of historically low interest rates, a fund may be subject to a greater risk of price losses if interest rates rise.

 

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 impact of the pandemic may be short term or may last for an extended period of time.

 

Credit Risk: Credit risk is the risk that an issuer or guarantor of debt instruments or the counterparty to a financial transaction, including derivatives contracts, repurchase agreements or loans of portfolio securities, is unable or unwilling to make timely interest and/or principal payments or to otherwise honor its obligations. BFA and its affiliates manage counterparty credit risk by entering into transactions only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose a fund to issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of a fund’s exposure to credit and counterparty risks with respect to those financial assets is approximated by their value recorded in its statement of assets and liabilities.

 

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

 

When a fund concentrates its investments in issuers located in a single country or a limited number of countries, it assumes the risk that economic, regulatory, political and social conditions in that country or those countries may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio.

 

Investments in Chinese securities, including certain Hong Kong-listed securities, involves risks specific to China. China may be subject to considerable degrees of economic, political and social instability and demonstrates significantly higher volatility from time to time in comparison to developed markets. Chinese markets generally continue to experience inefficiency, volatility and pricing anomalies resulting from governmental influence, a lack of publicly available information and/or political and social instability. Internal social unrest or confrontations with other neighboring countries may disrupt economic development in China and result in a greater risk of currency fluctuations, currency non-convertibility, interest rate fluctuations and higher rates of inflation. Incidents involving China’s or the region’s security may cause uncertainty in Chinese markets and may adversely affect the Chinese economy and a fund’s investments. Reduction in spending on Chinese products and services, institution of tariffs or other trade barriers, or a downturn in any of the economies of China’s key trading partners may have an adverse impact on the Chinese economy.

 

When a fund concentrates its investments in securities within a single or limited number of market sectors, it assumes the risk that economic, regulatory, political and social conditions affecting such sectors may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio.

 

11. CAPITAL SHARE TRANSACTIONS

 

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

 

N o t e s  t o  F i n a n c i a l  S t a t e m e n t s 57

 

 

 

 

Notes to Financial Statements (unaudited) (continued)

 

Transactions in capital shares were as follows:

 

    Six Months Ended
02/29/20
    Year Ended
08/31/19
 
iShares ETF   Shares     Amount     Shares     Amount  
Edge MSCI Min Vol Emerging Markets                                
Shares sold     400,000     $ 25,287,546       19,800,000     $ 1,132,727,160  
Shares redeemed     (4,900,000 )     (277,186,296 )     (3,300,000 )     (192,421,092 )
Net increase(decrease)     (4,500,000 )   $ (251,898,750 )     16,500,000     $ 940,306,068  
Edge MSCI Min Vol Global                                
Shares sold     7,700,000     $ 732,784,628       20,500,000     $ 1,789,740,435  
Shares redeemed     (5,000,000 )     (480,505,232 )     (2,500,000 )     (216,606,659 )
Net increase     2,700,000     $ 252,279,396       18,000,000     $ 1,573,133,776  
Edge MSCI Multifactor Emerging Markets                                
Shares sold     1,400,000     $ 62,972,159       5,100,000     $ 215,590,994  
Shares redeemed     (300,000 )     (12,854,701 )     (1,400,000 )     (56,047,109 )
Net increase     1,100,000     $ 50,117,458       3,700,000     $ 159,543,885  
ESG MSCI EM                                
Shares sold     41,500,000     $ 1,508,805,345       11,200,000     $ 368,110,977  
MSCI Emerging Markets ex China                                
Shares sold     100,000     $ 5,049,297       400,000     $ 18,966,426  

 

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

 

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

 

12. LEGAL PROCEEDINGS

 

On June 16, 2016, investors in certain iShares funds (iShares Core S&P Small-Cap ETF, iShares Russell 1000 Growth ETF, iShares Core S&P 500 ETF, iShares Russell Mid-Cap Growth ETF, iShares Russell Mid-Cap ETF, iShares Russell Mid-Cap Value ETF, iShares Select Dividend ETF, iShares Morningstar Mid-Cap ETF, iShares Morningstar Large-Cap ETF, iShares U.S. Aerospace & Defense ETF and iShares Preferred and Income Securities ETF) filed a class action lawsuit against iShares Trust, BlackRock, Inc. and certain of its advisory affiliates, and certain directors/trustees and officers of the Funds (collectively, “Defendants”) in California State Court. The lawsuit alleges the Defendants violated federal securities laws by failing to adequately disclose in the prospectuses issued by the funds noted above the risks of using stop-loss orders in the event of a ‘flash crash’, such as the one that occurred on May 6, 2010. On September 18, 2017, the court issued a Statement of Decision holding that the Plaintiffs lack standing to assert their claims. On October 11, 2017, the court entered final judgment dismissing all of the Plaintiffs’ claims with prejudice. In an opinion dated January 23, 2020, the California Court of Appeal affirmed the dismissal of Plaintiffs’ claims. On March 3, 2020, plaintiffs filed a petition for review by the California Supreme Court.

 

13. SUBSEQUENT EVENTS

 

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

 

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Statement Regarding Liquidity Risk Management Program

 

The Securities and Exchange Commission adopted Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”) to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders.

 

The Board of Directors (the “Board”) of iShares Edge MSCI Min Vol Emerging Markets ETF, iShares Edge MSCI Min Vol Global ETF, iShares Edge MSCI Multifactor Emerging Markets ETF, iShares ESG MSCI EM ETF and iShares MSCI Emerging Markets ex China met on December 3, 2019 (the “Meeting”) to review the liquidity risk management program (the “Program”) applicable to the iShares Funds (each, a “Fund”) pursuant to the Liquidity Rule. The Board has appointed BlackRock Fund Advisors (“BlackRock”), the investment adviser to the Funds, as the program administrator for each Fund’s Program, as applicable. BlackRock has delegated oversight of the Program to the 40 Act Liquidity Risk Management Committee (the “Committee”). At the Meeting, the Committee, on behalf of BlackRock, provided the Board with a report that addressed the operation of the Program and assessed its adequacy and effectiveness of implementation, including the operation of each Fund’s Highly Liquid Investment Minimum (“HLIM”) where applicable, and any material changes to the Program (the “Report”). The Report covered the period from December 1, 2018 through September 30, 2019 (the “Program Reporting Period”).

 

The Report described the Program’s liquidity classification methodology for categorizing a Fund’s investments (including derivative transactions) into one of four liquidity buckets. It also described BlackRock’s methodology in establishing a Fund’s HLIM and noted that the Committee reviews and ratifies the HLIM assigned to each Fund no less frequently than annually.

 

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

 

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

 

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

 

c) Holdings of cash and cash equivalents, as well as borrowing arrangements. The Committee considered that ETFs generally do not hold more than de minimus amounts of cash. Funds may borrow for temporary or emergency purposes, including to meet payments due from redemptions or to facilitate the settlement of securities or other transactions.

 

d) The relationship between an ETF’s portfolio liquidity and the way in which, and the prices and spreads at which, ETF shares trade, including the efficiency of the arbitrage function and the level of active participation by market participants, including authorized participants. The Committee monitored the prevailing bid/ask spread and the ETF price premium (or discount) to NAV for all ETFs and reviewed any persistent deviations from long-term averages.

 

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

 

There were no material changes to the Program during the Program Reporting Period. The Report provided to the Board stated that the Committee concluded that based on the operation of the functions, as described in the Report, the Program is operating as intended and is effective in implementing the requirements of the Liquidity Rule.

 

S t a t e m e n t  R e g a r d i n g  L i q u i d i t y  R i s k  M a n a g e m e n t  P r o g r a m 59

 

 

 

 

Supplemental Information (unaudited)

 

Section 19(a) Notices

 

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

 

    Total Cumulative Distributions for the Fiscal Year-to-Date     % Breakdown of the Total Cumulative
Distributions for the Fiscal Year-to-Date
iShares ETF   Net
Investment Income
    Net Realized
Capital Gains
    Return of
Capital
    Total Per
Share
    Net
Investment Income
    Net Realized
Capital Gains
    Return of
Capital
    Total Per
Share
 
Edge MSCI Min Vol Emerging Markets(a)   $ 0.778021     $     $ 0.137636     $ 0.915657       85 %     —%       15 %     100 %
Edge MSCI Min Vol Global(a)     1.179528             0.233118       1.412646       83             17       100  
Edge MSCI Multifactor Emerging Markets(a)     0.627311             0.123457       0.750768       84             16       100  
ESG MSCI EM(a)     0.615349             0.055938       0.671287       92             8       100  
MSCI Emerging Markets ex China(a)     1.271834             0.154548       1.426382       89             11       100  

 

(a) The Fund estimates that it has distributed more than its net investment income and net realized capital gains; therefore, a portion of the distribution may be a return of capital. A return of capital may occur, for example, when some or all of the shareholder’s investment in the Fund is returned to the shareholder. A return of capital does not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”. When distributions exceed total return performance, the difference will incrementally reduce the Fund’s net asset value per share.

 

60 2 0 2 0  i S h a r e s  S e m i - A n n u a l  R e p o r t  t o  S h a r e h o l d e r s

 

 

 

 

General Information

 

Electronic Delivery

 

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

 

To enroll in electronic delivery:

 

Go to icsdelivery.com.

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

 

Householding

 

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

 

Availability of Quarterly Schedule of Investments

 

The iShares Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT, and for reporting periods ended prior to March 31, 2019, filed such information on Form N-Q. The iShares Funds’ Forms N-Q are available on the SEC’s website at sec.gov. The iShares Funds also disclose their complete schedule of portfolio holdings on a daily basis on the iShares website at iShares.com.

 

Availability of Proxy Voting Policies and Proxy Voting Records

 

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

 

G e n e r a l  I n f o r m a t i o n 61

 

 

 

 

Glossary of Terms Used in this Report

 

Portfolio Abbreviations - Equity

 

ADR American Depositary Receipt
   
CPO Certificates of Participation (Ordinary)
   
GDR Global Depositary Receipt
   
NVDR Non-Voting Depositary Receipt
   
NVS Non-Voting Shares

 

62 2 0 2 0  i S h a r e s  S e m i - A n n u a l  R e p o r t  t o  S h a r e h o l d e r s

 

 

 

 

Want to know more?

iShares.com | 1-800-474-2737

 

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

 

Investing involves risk, including possible loss of principal.

 

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

 

The iShares Funds are not sponsored, endorsed, issued, sold or promoted by MSCI Inc., nor does this company make any representation regarding the advisability of investing in the iShares Funds. BlackRock is not affiliated with the company listed above.

 

©2020 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.

 

iS-SAR-816-0220

 

(GRAPHIC)   (GRAPHIC)  
   

Item 2. Code of Ethics.

Not applicable to this semi-annual report.

Item 3. Audit Committee Financial Expert.

Not applicable to this semi-annual report.

Item 4. Principal Accountant Fees and Services.

Not applicable to this semi-annual report.

Item 5. Audit Committee of Listed Registrants.

Not applicable to this semi-annual report.

Item 6. Investments.

(a)Schedules of investments are included as part of the reports to shareholders filed under Item 1 of this Form.

(b)Not applicable.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable to the registrant.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable to the registrant.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable to the registrant.

Item 10. Submission of Matters to a Vote of Security Holders.

There were no material changes to the procedures by which shareholders may recommend nominees to the registrant's Board of Directors.

Item 11. Controls and Procedures.

(a)The President (the registrant's Principal Executive Officer) and Treasurer and Chief Financial Officer (the registrant's Principal Financial Officer) have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) are effective as of a date within 90 days of the filing date of this report, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the Investment Company Act of 1940 and Rules 13a-15(b) or 15d-15(b) under the Exchange Act of 1934.

(b)There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting.

 

Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

Not applicable to the registrant.

Item 13. Exhibits.

(a)(1) Not applicable to this semi-annual report.

(a)(2) Section 302 Certifications are attached.

(a)(3) Not applicable.

(a)(4) Not applicable.

(b)Section 906 Certifications are attached.

 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

iShares, Inc.

By: /s/ Armando Senra

Armando Senra, President (Principal Executive Officer)

Date:

May 05, 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/ Armando Senra

Armando Senra, President (Principal Executive Officer)

Date:

May 05, 2020

By: /s/ Trent Walker

Trent Walker, Treasurer and Chief Financial Officer (Principal Financial Officer)

Date:

May 05, 2020

N-CSR Exhibit for Item 13(a)(2): SECTION 302 CERTIFICATIONS

EX-99.CERT

I, Armando Senra, certify that:

1.I have reviewed this report on Form N-CSR of iShares, Inc. for the following forty-eight series: iShares Core MSCI Emerging Markets ETF, iShares Currency Hedged MSCI Emerging Markets ETF, iShares Edge MSCI Min Vol Emerging Markets ETF, iShares Edge MSCI Min Vol Global ETF, iShares Edge MSCI Multifactor Emerging Markets ETF, iShares ESG MSCI EM ETF, iShares MSCI Australia ETF, iShares MSCI Austria ETF, iShares MSCI Belgium ETF, iShares MSCI Brazil ETF, iShares MSCI BRIC ETF, iShares MSCI Canada ETF, iShares MSCI Chile ETF, iShares MSCI Colombia ETF, iShares MSCI Emerging Markets Asia ETF, iShares MSCI Emerging Markets ETF, iShares MSCI Emerging Markets ex China ETF, iShares MSCI Emerging Markets Small-Cap ETF, iShares MSCI Eurozone ETF, iShares MSCI France ETF, iShares MSCI Frontier 100 ETF, iShares MSCI Germany ETF, iShares MSCI Global Agriculture Producers ETF, iShares MSCI Global Energy Producers ETF, iShares MSCI Global Gold Miners ETF, iShares MSCI Global Metals & Mining Producers ETF, iShares MSCI Global Silver and Metals Miners ETF (Formerly, iShares MSCI Global Silver Miners ETF), iShares MSCI Hong Kong ETF, iShares MSCI Israel ETF, iShares MSCI Italy ETF, iShares MSCI Japan ETF, iShares MSCI Japan Small-Cap ETF, iShares MSCI Malaysia ETF, iShares MSCI Mexico ETF, iShares MSCI Netherlands ETF, iShares MSCI Pacific ex Japan ETF, iShares MSCI Russia ETF, iShares MSCI Singapore ETF, iShares MSCI South Africa ETF, iShares MSCI South Korea ETF, iShares MSCI Spain ETF, iShares MSCI Sweden ETF, iShares MSCI Switzerland ETF, iShares MSCI Taiwan ETF, iShares MSCI Thailand ETF, iShares MSCI Turkey ETF, iShares MSCI USA Equal Weighted ETF and iShares MSCI World ETF;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

 

 

 

 

President

Date: May 05, 2020

 

/s/ Armando Senra

(Principal Executive Officer)

 

 

 

Armando Senra

[Title]

 

 

 

[Signature]

 

N-CSR Exhibit for Item 13(a)(2): SECTION 302 CERTIFICATIONS

EX-99.CERT

I, Trent Walker, certify that:

1.I have reviewed this report on Form N-CSR of iShares, Inc. for the following forty-eight series: iShares Core MSCI Emerging Markets ETF, iShares Currency Hedged MSCI Emerging Markets ETF, iShares Edge MSCI Min Vol Emerging Markets ETF, iShares Edge MSCI Min Vol Global ETF, iShares Edge MSCI Multifactor Emerging Markets ETF, iShares ESG MSCI EM ETF, iShares MSCI Australia ETF, iShares MSCI Austria ETF, iShares MSCI Belgium ETF, iShares MSCI Brazil ETF, iShares MSCI BRIC ETF, iShares MSCI Canada ETF, iShares MSCI Chile ETF, iShares MSCI Colombia ETF, iShares MSCI Emerging Markets Asia ETF, iShares MSCI Emerging Markets ETF, iShares MSCI Emerging Markets ex China ETF, iShares MSCI Emerging Markets Small-Cap ETF, iShares MSCI Eurozone ETF, iShares MSCI France ETF, iShares MSCI Frontier 100 ETF, iShares MSCI Germany ETF, iShares MSCI Global Agriculture Producers ETF, iShares MSCI Global Energy Producers ETF, iShares MSCI Global Gold Miners ETF, iShares MSCI Global Metals & Mining Producers ETF, iShares MSCI Global Silver and Metals Miners ETF (Formerly, iShares MSCI Global Silver Miners ETF), iShares MSCI Hong Kong ETF, iShares MSCI Israel ETF, iShares MSCI Italy ETF, iShares MSCI Japan ETF, iShares MSCI Japan Small-Cap ETF, iShares MSCI Malaysia ETF, iShares MSCI Mexico ETF, iShares MSCI Netherlands ETF, iShares MSCI Pacific ex Japan ETF, iShares MSCI Russia ETF, iShares MSCI Singapore ETF, iShares MSCI South Africa ETF, iShares MSCI South Korea ETF, iShares MSCI Spain ETF, iShares MSCI Sweden ETF, iShares MSCI Switzerland ETF, iShares MSCI Taiwan ETF, iShares MSCI Thailand ETF, iShares MSCI Turkey ETF, iShares MSCI USA Equal Weighted ETF and iShares MSCI World ETF;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors(or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

 

 

 

 

Treasurer and Chief Financial Officer

Date:

May 05, 2020

 

/s/ Trent Walker

(Principal Financial Officer)

 

 

 

Trent Walker

[Title]

 

 

 

[Signature]

 

Ex.99.906 CERT

N-CSR Exhibit for Item 13(b): CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

Armando Senra, President (Principal Executive Officer), and Trent Walker, Treasurer and Chief Financial Officer (Principal Financial Officer), of iShares, Inc. (the "Registrant"), each certify, to his knowledge, that:

1.The Registrant's periodic report on Form N-CSR for the period ended February 29, 2020 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

 

 

 

 

President

Date:

May 05, 2020

 

/s/ Armando Senra

(Principal Executive Officer)

 

 

 

Armando Senra

[Title]

 

 

 

[Signature]

 

 

 

 

 

Treasurer and Chief Financial Officer

Date:

May 05, 2020

 

/s/ Trent Walker

(Principal Financial Officer)

 

 

 

Trent Walker

[Title]

 

 

 

[Signature]