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 811-22649
iShares U.S. ETF Trust
| (Exact name of registrant as specified in charter) | ||
c/o: State Street Bank and Trust Company |
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100 Summer Street, 4th Floor, Boston, MA | 02110 | ||
(Address of principal executive offices) |
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The Corporation Trust Company |
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1209 Orange Street, Wilmington, DE 19801 |
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| (Name and address of agent for service) | ||
Registrant's telephone number, including area code: | (415) 670-2000 |
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Date of fiscal year end: | July 31, 2020 |
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Date of reporting period: | January 31, 2020 |
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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.
JANUARY 31, 2020 |
2020 Semi-Annual Report (Unaudited) |
iShares U.S. ETF Trust
• iShares Evolved U.S. Consumer Staples ETF | IECS | Cboe BZX
• iShares Evolved U.S. Discretionary Spending ETF | IEDI | Cboe BZX
• iShares Evolved U.S. Financials ETF | IEFN | Cboe BZX
• iShares Evolved U.S. Healthcare Staples ETF | IEHS | Cboe BZX
• iShares Evolved U.S. Innovative Healthcare ETF | IEIH | Cboe BZX
• iShares Evolved U.S. Media and Entertainment ETF | IEME | Cboe BZX
• iShares Evolved U.S. Technology ETF | IETC | 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. |
Table of Contents
Fund Summary as of January 31, 2020 | iShares® Evolved U.S. Consumer Staples ETF |
Investment Objective
The iShares Evolved U.S. Consumer Staples ETF (the “Fund”) seeks to provide access to U.S. companies with consumer staples exposure, as classified using a proprietary classification system. The Fund is an actively managed exchange-traded fund that does not seek to replicate the performance of a specified index.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||
6 Months | 1 Year | Since Inception | 1 Year | Since Inception | ||||||||||||||||
Fund NAV | 5.99 | % | 20.76 | % | 12.16 | % | 20.76 | % | 23.91 | % | ||||||||||
Fund Market | 5.95 | 20.65 | 12.18 | 20.65 | 23.95 | |||||||||||||||
S&P Total Market IndexTM | 8.55 | 20.38 | 10.94 | 20.38 | 21.28 |
The inception date of the Fund was 3/21/18. The first day of secondary market trading was 3/23/18.
The S&P Total Market IndexTM is an unmanaged index designed to track the broad equity market, including large-, mid-, small-, and micro-cap stocks.
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 | ||||||||||||||||||||
(08/01/19) | (01/31/20) | the Period | (a) | (08/01/19) | (01/31/20) | the Period | (a) | Ratio | ||||||||||||||||||
$ | 1,000.00 | $ | 1,059.90 | $ | 0.93 | $ | 1,000.00 | $ | 1,024.20 | $ | 0.92 | 0.18 | % |
(a) | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 10 for more information. |
Portfolio Information
ALLOCATION BY SECTOR
Sector | Percent of Total Investments | (a) | ||
Beverages | 28.0 | % | ||
Food | 26.6 | |||
Retail | 12.4 | |||
Agriculture | 11.0 | |||
Cosmetics & Personal Care | 10.0 | |||
Packaging & Containers | 3.0 | |||
Household Products & Wares | 2.6 | |||
Pharmaceuticals | 2.3 | |||
Chemicals | 1.7 | |||
Real Estate Investment Trusts | 1.1 | |||
Other (each representing less than 1%) | 1.3 |
TEN LARGEST HOLDINGS
Security | Percent of Total Investments | (a) | ||
Coca-Cola Co. (The) | 11.3 | % | ||
PepsiCo Inc. | 9.5 | |||
Procter & Gamble Co. (The) | 7.3 | |||
Mondelez International Inc., Class A | 4.8 | |||
McDonald's Corp. | 4.7 | |||
Philip Morris International Inc. | 4.5 | |||
Altria Group Inc. | 4.2 | |||
Starbucks Corp. | 4.0 | |||
General Mills Inc. | 3.1 | |||
Colgate-Palmolive Co. | 2.6 |
(a) | Excludes money market funds. |
F u n d S u m m a r y | 3 |
Fund Summary as of January 31, 2020 | iShares® Evolved U.S. Discretionary Spending ETF |
Investment Objective
The iShares Evolved U.S. Discretionary Spending ETF (the “Fund”) seeks to provide access to U.S. companies with discretionary spending exposure, as classified using a proprietary classification system. The Fund is an actively managed exchange-traded fund that does not seek to replicate the performance of a specified index.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||
6 Months | 1 Year | Since Inception | 1 Year | Since Inception | ||||||||||||||||
Fund NAV | 6.53 | % | 19.57 | % | 14.36 | % | 19.57 | % | 28.49 | % | ||||||||||
Fund Market | 6.52 | 19.56 | 14.38 | 19.56 | 28.53 | |||||||||||||||
S&P Total Market IndexTM | 8.55 | 20.38 | 10.94 | 20.38 | 21.28 |
The inception date of the Fund was 3/21/18. The first day of secondary market trading was 3/23/18.
The S&P Total Market IndexTM is an unmanaged index designed to track the broad equity market, including large-, mid-, small-, and micro-cap stocks.
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 | ||||||||||||||||||||
(08/01/19) | (01/31/20) | the Period | (a) | (08/01/19) | (01/31/20) | the Period | (a) | Ratio | ||||||||||||||||||
$ | 1,000.00 | $ | 1,065.30 | $ | 0.93 | $ | 1,000.00 | $ | 1,024.20 | $ | 0.92 | 0.18 | % |
(a) | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 10 for more information. |
Portfolio Information
ALLOCATION BY SECTOR
Sector | Percent of Total Investments | (a) | ||
Retail | 54.2 | % | ||
Internet | 15.5 | |||
Apparel | 7.6 | |||
Cosmetics & Personal Care | 5.4 | |||
Computers | 4.3 | |||
Lodging | 3.3 | |||
Food | 1.7 | |||
Commercial Services | 1.5 | |||
Leisure Time | 1.2 | |||
Entertainment | 1.0 | |||
Distribution & Wholesale | 1.0 | |||
Other (each representing less than 1%) | 3.3 |
TEN LARGEST HOLDINGS
Security | Percent of Total Investments | (a) | ||
Amazon. com Inc. | 12.0 | % | ||
Home Depot Inc. (The) | 8.4 | |||
Walmart Inc. | 6.3 | |||
Costco Wholesale Corp. | 5.2 | |||
Apple Inc. | 4.3 | |||
NIKE Inc., Class B | 4.1 | |||
Procter & Gamble Co. (The) | 4.1 | |||
McDonald's Corp. | 3.9 | |||
TJX Companies Inc. (The) | 2.9 | |||
Lowe's Companies Inc. | 2.7 |
(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 January 31, 2020 | iShares® Evolved U.S. Financials ETF |
Investment Objective
The iShares Evolved U.S. Financials ETF (the “Fund”) seeks to provide access to U.S. companies with financials exposure, as classified using a proprietary classification system. The Fund is an actively managed exchange-traded fund that does not seek to replicate the performance of a specified index.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||
6 Months | 1 Year | Since Inception | 1 Year | Since Inception | ||||||||||||||||
Fund NAV | 4.79 | % | 16.41 | % | 3.73 | % | 16.41 | % | 7.09 | % | ||||||||||
Fund Market | 4.79 | 16.40 | 3.73 | 16.40 | 7.09 | |||||||||||||||
S&P Total Market IndexTM | 8.55 | 20.38 | 10.94 | 20.38 | 21.28 |
The inception date of the Fund was 3/21/18. The first day of secondary market trading was 3/23/18.
The S&P Total Market IndexTM is an unmanaged index designed to track the broad equity market, including large-, mid-, small-, and micro-cap stocks.
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 | ||||||||||||||||||||
(08/01/19) | (01/31/20) | the Period | (a) | (08/01/19) | (01/31/20) | the Period | (a) | Ratio | ||||||||||||||||||
$ | 1,000.00 | $ | 1,047.90 | $ | 0.93 | $ | 1,000.00 | $ | 1,024.20 | $ | 0.92 | 0.18 | % |
(a) | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 10 for more information. |
Portfolio Information
ALLOCATION BY SECTOR
Sector | Percent of Total Investments | (a) | ||
Banks | 42.8 | % | ||
Insurance | 25.6 | |||
Diversified Financial Services | 15.4 | |||
Commercial Services | 4.7 | |||
Health Care - Services | 3.3 | |||
Software | 2.8 | |||
Savings & Loans | 1.4 | |||
Other (each representing less than 1%) | 4.0 |
TEN LARGEST HOLDINGS
Security | Percent of Total Investments | (a) | ||
JPMorgan Chase & Co. | 4.7 | % | ||
Bank of America Corp. | 4.6 | |||
Citigroup Inc. | 4.1 | |||
Wells Fargo & Co. | 4.1 | |||
U. S. Bancorp | 2.7 | |||
Berkshire Hathaway Inc., Class B | 2.6 | |||
Goldman Sachs Group Inc. (The) | 2.4 | |||
Truist Financial Corp. | 2.1 | |||
American Express Co. | 2.1 | |||
Morgan Stanley | 1.9 |
(a) | Excludes money market funds. |
F u n d S u m m a r y | 5 |
Fund Summary as of January 31, 2020 | iShares® Evolved U.S. Healthcare Staples ETF |
Investment Objective
The iShares Evolved U.S. Healthcare Staples ETF (the “Fund”) seeks to provide access to U.S. companies with healthcare staples exposure, as classified using a proprietary classification system. The Fund is an actively managed exchange-traded fund that does not seek to replicate the performance of a specified index.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||
6 Months | 1 Year | Since Inception | 1 Year | Since Inception | ||||||||||||||||
Fund NAV | 7.54 | % | 12.49 | % | 14.88 | % | 12.49 | % | 29.58 | % | ||||||||||
Fund Market | 7.65 | 12.56 | 14.93 | 12.56 | 29.70 | |||||||||||||||
S&P Total Market IndexTM | 8.55 | 20.38 | 10.94 | 20.38 | 21.28 |
The inception date of the Fund was 3/21/18. The first day of secondary market trading was 3/23/18.
The S&P Total Market IndexTM is an unmanaged index designed to track the broad equity market, including large-, mid-, small-, and micro-cap stocks.
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 | ||||||||||||||||||||
(08/01/19) | (01/31/20) | the Period | (a) | (08/01/19) | (01/31/20) | the Period | (a) | Ratio | ||||||||||||||||||
$ | 1,000.00 | $ | 1,075.40 | $ | 0.94 | $ | 1,000.00 | $ | 1,024.20 | $ | 0.92 | 0.18 | % |
(a) | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 10 for more information. |
Portfolio Information
ALLOCATION BY SECTOR
Sector | Percent of Total Investments | (a) | ||
Health Care - Products | 46.6 | % | ||
Health Care - Services | 27.1 | |||
Pharmaceuticals | 16.3 | |||
Biotechnology | 3.2 | |||
Real Estate Investment Trusts | 1.9 | |||
Electronics | 1.2 | |||
Other (each representing less than 1%) | 3.7 |
TEN LARGEST HOLDINGS
Security | Percent of Total Investments | (a) | ||
UnitedHealth Group Inc. | 11.0 | % | ||
Medtronic PLC | 7.7 | |||
Abbott Laboratories | 6.7 | |||
Johnson & Johnson | 4.0 | |||
Thermo Fisher Scientific Inc. | 3.8 | |||
Danaher Corp. | 3.5 | |||
Stryker Corp. | 3.4 | |||
Becton Dickinson and Co. | 3.4 | |||
Intuitive Surgical Inc. | 3.2 | |||
CVS Health Corp. | 3.2 |
(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 January 31, 2020 | iShares® Evolved U.S. Innovative Healthcare ETF |
Investment Objective
The iShares Evolved U.S. Innovative Healthcare ETF (the “Fund”) seeks to provide access to U.S. companies with innovative healthcare exposure, as classified using a proprietary classification system. The Fund is an actively managed exchange-traded fund that does not seek to replicate the performance of a specified index.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||
6 Months | 1 Year | Since Inception | 1 Year | Since Inception | ||||||||||||||||
Fund NAV | 12.38 | % | 10.03 | % | 7.26 | % | 10.03 | % | 13.99 | % | ||||||||||
Fund Market | 12.33 | 9.90 | 7.26 | 9.90 | 13.99 | |||||||||||||||
S&P Total Market IndexTM | 8.55 | 20.38 | 10.94 | 20.38 | 21.28 |
The inception date of the Fund was 3/21/18. The first day of secondary market trading was 3/23/18.
The S&P Total Market IndexTM is an unmanaged index designed to track the broad equity market, including large-, mid-, small-, and micro-cap stocks.
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 | ||||||||||||||||||||
(08/01/19) | (01/31/20) | the Period | (a) | (08/01/19) | (01/31/20) | the Period | (a) | Ratio | ||||||||||||||||||
$ | 1,000.00 | $ | 1,123.80 | $ | 0.96 | $ | 1,000.00 | $ | 1,024.20 | $ | 0.92 | 0.18 | % |
(a) | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 10 for more information. |
Portfolio Information
ALLOCATION BY SECTOR
Sector | Percent of Total Investments | (a) | ||
Pharmaceuticals | 56.1 | % | ||
Biotechnology | 38.2 | |||
Health Care - Products | 4.1 | |||
Health Care - Services | 1.3 | |||
Other (each representing less than 1%) | 0.3 |
TEN LARGEST HOLDINGS
Security | Percent of Total Investments | (a) | ||
Johnson & Johnson | 10.1 | % | ||
Merck & Co. Inc. | 7.5 | |||
Pfizer Inc. | 6.0 | |||
Bristol-Myers Squibb Co. | 5.7 | |||
Eli Lilly & Co. | 5.5 | |||
Vertex Pharmaceuticals Inc. | 5.1 | |||
AbbVie Inc. | 4.6 | |||
Amgen Inc. | 4.5 | |||
Gilead Sciences Inc. | 4.4 | |||
Biogen Inc. | 4.0 |
(a) | Excludes money market funds. |
F u n d S u m m a r y | 7 |
Fund Summary as of January 31, 2020 | iShares® Evolved U.S. Media and Entertainment ETF |
Investment Objective
The iShares Evolved U.S. Media and Entertainment ETF (the “Fund”) seeks to provide access to U.S. companies with media and entertainment exposure, as classified using a proprietary classification system. The Fund is an actively managed exchange-traded fund that does not seek to replicate the performance of a specified index.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||
6 Months | 1 Year | Since Inception | 1 Year | Since Inception | ||||||||||||||||
Fund NAV | (0.56 | )% | 10.02 | % | 7.27 | % | 10.02 | % | 14.01 | % | ||||||||||
Fund Market | (0.63 | ) | 9.89 | 7.25 | 9.89 | 13.97 | ||||||||||||||
S&P Total Market IndexTM | 8.55 | 20.38 | 10.94 | �� | 20.38 | 21.28 |
The inception date of the Fund was 3/21/18. The first day of secondary market trading was 3/23/18.
The S&P Total Market IndexTM is an unmanaged index designed to track the broad equity market, including large-, mid-, small-, and micro-cap stocks.
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 | ||||||||||||||||||||
(08/01/19) | (01/31/20) | the Period | (a) | (08/01/19) | (01/31/20) | the Period | (a) | Ratio | ||||||||||||||||||
$ | 1,000.00 | $ | 994.40 | $ | 0.90 | $ | 1,000.00 | $ | 1,024.20 | $ | 0.92 | 0.18 | % |
(a) | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 10 for more information. |
Portfolio Information
ALLOCATION BY SECTOR
Sector | Percent of Total Investments | (a) | ||
Media | 60.4 | % | ||
Internet | 14.5 | |||
Software | 10.8 | |||
Entertainment | 5.6 | |||
Toys, Games & Hobbies | 3.0 | |||
Commercial Services | 1.7 | |||
Telecommunications | 1.1 | |||
Other (each representing less than 1%) | 2.9 |
TEN LARGEST HOLDINGS
Security | Percent of Total Investments | (a) | ||
Comcast Corp., Class A | 6.4 | % | ||
Walt Disney Co. (The) | 5.9 | |||
Netflix Inc. | 5.3 | |||
Charter Communications Inc., Class A | 5.2 | |||
Fox Corp., Class A | 4.7 | |||
Activision Blizzard Inc. | 4.6 | |||
ViacomCBS Inc., Class B | 4.1 | |||
Liberty Broadband Corp., Class C | 4.0 | |||
Electronic Arts Inc. | 3.6 | |||
Discovery Inc., Class C | 3.4 |
(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 January 31, 2020 | iShares® Evolved U.S. Technology ETF |
Investment Objective
The iShares Evolved U.S. Technology ETF (the “Fund”) seeks to provide access to U.S. companies with technology exposure, as classified using a proprietary classification system. The Fund is an actively managed exchange-traded fund that does not seek to replicate the performance of a specified index.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||
6 Months | 1 Year | Since Inception | 1 Year | Since Inception | ||||||||||||||||
Fund NAV | 14.45 | % | 36.01 | % | 19.66 | % | 36.01 | % | 39.85 | % | ||||||||||
Fund Market | 14.33 | 35.89 | 19.68 | 35.89 | 39.89 | |||||||||||||||
S&P Total Market IndexTM | 8.55 | 20.38 | 10.94 | 20.38 | 21.28 |
The inception date of the Fund was 3/21/18. The first day of secondary market trading was 3/23/18.
The S&P Total Market IndexTM is an unmanaged index designed to track the broad equity market, including large-, mid-, small-, and micro-cap stocks.
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 | ||||||||||||||||||||
(08/01/19) | (01/31/20) | the Period | (a) | (08/01/19) | (01/31/20) | the Period | (a) | Ratio | ||||||||||||||||||
$ | 1,000.00 | $ | 1,144.50 | $ | 0.97 | $ | 1,000.00 | $ | 1,024.20 | $ | 0.92 | 0.18 | % |
(a) | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 10 for more information. |
Portfolio Information
ALLOCATION BY SECTOR
Sector | Percent of Total Investments | (a) | ||
Software | 31.7 | % | ||
Internet | 25.4 | |||
Computers | 15.9 | |||
Semiconductors | 9.3 | |||
Diversified Financial Services | 6.5 | |||
Commercial Services | 4.7 | |||
Telecommunications | 2.9 | |||
Other (each representing less than 1%) | 3.6 |
TEN LARGEST HOLDINGS
Security | Percent of Total Investments | (a) | ||
Microsoft Corp. | 16.3 | % | ||
Apple Inc. | 10.8 | |||
Amazon. com Inc. | 6.7 | |||
Facebook Inc., Class A | 5.3 | |||
Alphabet Inc., Class C | 4.5 | |||
Alphabet Inc., Class A | 4.5 | |||
Visa Inc., Class A | 3.0 | |||
Cisco Systems Inc. | 2.3 | |||
Mastercard Inc., Class A | 2.3 | |||
salesforce. com Inc. | 2.0 |
(a) | Excludes money market funds. |
F u n d S u m m a r y | 9 |
Past performance is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at iShares.com. Performance results assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. The investment return and principal value of shares will vary with changes in market conditions. Shares may be worth more or less than their original cost when they are redeemed or sold in the market. Performance for certain funds may reflect a waiver of a portion of investment advisory fees. Without such a waiver, performance would have been lower.
Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest ask on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of a fund may not trade in the secondary market until after the fund’s inception, for the period from inception to the first day of secondary market trading in shares of the fund, the NAV of the fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.
As a shareholder of your Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares and (2) ongoing costs, including management fees and other fund expenses. The expense example, which is based on an investment of $1,000 invested at the beginning of the period (or from the commencement of operations if less than 6 months) and held through the end of the period, is intended to help you understand your ongoing costs (in dollars and cents) of investing in your Fund and to compare these costs with the ongoing costs of investing in other funds.
Actual Expenses – The table provides information about actual account values and actual expenses. Annualized expense ratios reflect contractual and voluntary fee waivers, if any. To estimate the expenses that you paid on your account over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During the Period.”
Hypothetical Example for Comparison Purposes – The table also provides information about hypothetical account values and hypothetical expenses based on your Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions 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 | 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® Evolved U.S. Consumer Staples ETF |
January 31, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Advertising — 0.1% | ||||||||
Omnicom Group Inc. | 96 | $ | 7,230 | |||||
Agriculture — 10.9% | ||||||||
Altria Group Inc. | 7,601 | 361,276 | ||||||
Archer-Daniels-Midland Co. | 3,063 | 137,100 | ||||||
Bunge Ltd. | 643 | 33,712 | ||||||
Darling Ingredients Inc.(a) | 522 | 14,162 | ||||||
Philip Morris International Inc. | 4,678 | 386,871 | ||||||
Universal Corp./VA | 126 | 6,697 | ||||||
Vector Group Ltd. | 225 | 2,956 | ||||||
942,774 | ||||||||
Beverages — 27.7% | ||||||||
Boston Beer Co. Inc. (The), Class A, NVS(a) | 36 | 12,830 | ||||||
Brown-Forman Corp., Class A | 224 | 14,397 | ||||||
Brown-Forman Corp., Class B, NVS | 1,645 | 111,268 | ||||||
Coca-Cola Co. (The) | 16,608 | 969,907 | ||||||
Coca-Cola Consolidated Inc. | 31 | 8,395 | ||||||
Constellation Brands Inc., Class A | 657 | 123,713 | ||||||
Keurig Dr Pepper Inc. | 2,298 | 65,562 | ||||||
MGP Ingredients Inc. | 66 | 2,248 | ||||||
Molson Coors Beverage Co., Class B | 900 | 50,022 | ||||||
Monster Beverage Corp.(a) | 3,257 | 216,916 | ||||||
National Beverage Corp.(a) | 90 | 3,862 | ||||||
PepsiCo Inc. | 5,763 | 818,461 | ||||||
2,397,581 | ||||||||
Chemicals — 1.7% | ||||||||
Balchem Corp. | 98 | 10,586 | ||||||
Ecolab Inc. | 250 | 49,028 | ||||||
FMC Corp. | 136 | 13,000 | ||||||
International Flavors & Fragrances Inc. | 419 | 54,935 | ||||||
Mosaic Co. (The) | 424 | 8,412 | ||||||
Sensient Technologies Corp. | 144 | 8,604 | ||||||
144,565 | ||||||||
Commercial Services — 0.1% | ||||||||
Medifast Inc. | 35 | 3,382 | ||||||
WW International Inc.(a)(b) | 108 | 3,562 | ||||||
6,944 | ||||||||
Computers — 0.0% | ||||||||
ExlService Holdings Inc.(a) | 59 | 4,313 | ||||||
Cosmetics & Personal Care — 9.9% | ||||||||
Colgate-Palmolive Co. | 3,042 | 224,439 | ||||||
Coty Inc., Class A | 587 | 6,023 | ||||||
Edgewell Personal Care Co.(a) | 150 | 3,873 | ||||||
Estee Lauder Companies Inc. (The), Class A | 1 | 195 | ||||||
Procter & Gamble Co. (The) | 5,033 | 627,212 | ||||||
861,742 | ||||||||
Distribution & Wholesale — 0.0% | ||||||||
Core-Mark Holding Co. Inc. | 138 | 3,235 | ||||||
Diversified Financial Services — 0.0% | ||||||||
CME Group Inc. | 1 | 217 | ||||||
Jefferies Financial Group Inc. | 2 | 43 | ||||||
260 | ||||||||
Electric — 0.1% | ||||||||
Entergy Corp. | 67 | 8,812 |
Security | Shares | Value | ||||||
Electrical Components & Equipment — 0.1% | ||||||||
Energizer Holdings Inc. | 168 | $ | 7,772 | |||||
Food — 26.3% | ||||||||
B&G Foods Inc. | 462 | 7,420 | ||||||
Beyond Meat Inc.(a) | 233 | 25,728 | ||||||
Calavo Growers Inc. | 66 | 5,056 | ||||||
Cal-Maine Foods Inc. | 120 | 4,283 | ||||||
Campbell Soup Co. | 1,411 | 68,278 | ||||||
Conagra Brands Inc. | 3,506 | 115,418 | ||||||
Flowers Foods Inc. | 714 | 15,372 | ||||||
Fresh Del Monte Produce Inc. | 101 | 3,169 | ||||||
General Mills Inc. | 5,139 | 268,359 | ||||||
Hain Celestial Group Inc. (The)(a)(b) | 624 | 15,107 | ||||||
Hershey Co. (The) | 1,158 | 179,687 | ||||||
Hormel Foods Corp. | 1,556 | 73,537 | ||||||
Hostess Brands Inc.(a) | 390 | 5,234 | ||||||
Ingredion Inc. | 342 | 30,096 | ||||||
J&J Snack Foods Corp. | 78 | 12,936 | ||||||
JM Smucker Co. (The) | 830 | 85,996 | ||||||
John B Sanfilippo & Son Inc. | 54 | 4,552 | ||||||
Kellogg Co. | 1,978 | 134,919 | ||||||
Kraft Heinz Co. (The) | 4,557 | 133,064 | ||||||
Lamb Weston Holdings Inc. | 804 | 73,413 | ||||||
Lancaster Colony Corp. | 102 | 15,774 | ||||||
McCormick & Co. Inc./MD, NVS | 697 | 113,869 | ||||||
Mondelez International Inc., Class A | 7,133 | 409,292 | ||||||
Performance Food Group Co.(a) | 366 | 18,955 | ||||||
Pilgrim's Pride Corp.(a) | 180 | 4,689 | ||||||
Post Holdings Inc.(a) | 492 | 51,449 | ||||||
Sanderson Farms Inc. | 72 | 9,914 | ||||||
Seaboard Corp. | 1 | 3,856 | ||||||
Simply Good Foods Co. (The)(a) | 430 | 9,877 | ||||||
Sprouts Farmers Market Inc.(a) | 270 | 4,220 | ||||||
Sysco Corp. | 2,136 | 175,451 | ||||||
Tootsie Roll Industries Inc. | 85 | 2,899 | ||||||
TreeHouse Foods Inc.(a) | 384 | 17,126 | ||||||
Tyson Foods Inc., Class A | 1,812 | 149,726 | ||||||
U.S. Foods Holding Corp.(a) | 714 | 28,681 | ||||||
United Natural Foods Inc.(a)(b) | 132 | 950 | ||||||
2,278,352 | ||||||||
Holding Companies - Diversified — 0.1% | ||||||||
Cannae Holdings Inc.(a) | 178 | 7,237 | ||||||
Household Products & Wares — 2.6% | ||||||||
ACCO Brands Corp. | 2 | 17 | ||||||
Central Garden & Pet Co., Class A, NVS(a) | 78 | 2,337 | ||||||
Church & Dwight Co. Inc. | 760 | 56,407 | ||||||
Clorox Co. (The) | 376 | 59,149 | ||||||
Helen of Troy Ltd.(a) | 47 | 8,885 | ||||||
Kimberly-Clark Corp. | 640 | 91,674 | ||||||
Spectrum Brands Holdings Inc. | 47 | 2,886 | ||||||
WD-40 Co | 19 | 3,550 | ||||||
224,905 | ||||||||
Housewares — 0.2% | ||||||||
Newell Brands Inc. | 299 | 5,840 | ||||||
Scotts Miracle-Gro Co. (The) | 84 | 10,310 | ||||||
Tupperware Brands Corp. | 96 | 601 | ||||||
16,751 | ||||||||
Machinery — 0.3% | ||||||||
AGCO Corp. | 138 | 9,679 |
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® Evolved U.S. Consumer Staples ETF |
January 31, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Machinery (continued) | ||||||||
Middleby Corp. (The)(a)(b) | 102 | $ | 11,441 | |||||
Welbilt Inc.(a) | 212 | 3,199 | ||||||
24,319 | ||||||||
Manufacturing — 0.2% | ||||||||
AptarGroup Inc. | 54 | 6,238 | ||||||
John Bean Technologies Corp. | 72 | 8,135 | ||||||
14,373 | ||||||||
Packaging & Containers — 3.0% | ||||||||
Amcor PLC(a) | 2,494 | 26,411 | ||||||
Ball Corp. | 1,427 | 103,001 | ||||||
Berry Global Group Inc.(a) | 371 | 15,775 | ||||||
Crown Holdings Inc.(a) | 547 | 40,494 | ||||||
Graphic Packaging Holding Co. | 1,331 | 20,804 | ||||||
O-I Glass Inc. | 468 | 5,906 | ||||||
Packaging Corp. of America | 152 | 14,554 | ||||||
Sealed Air Corp. | 258 | 9,159 | ||||||
Silgan Holdings Inc. | 222 | 6,851 | ||||||
Sonoco Products Co. | 252 | 14,399 | ||||||
257,354 | ||||||||
Pharmaceuticals — 2.3% | ||||||||
Elanco Animal Health Inc.(a) | 880 | 27,192 | ||||||
Herbalife Nutrition Ltd.(a) | 275 | 10,684 | ||||||
Neogen Corp.(a) | 162 | 10,898 | ||||||
Perrigo Co. PLC | 79 | 4,506 | ||||||
Prestige Consumer Healthcare Inc.(a) | 132 | 5,354 | ||||||
Zoetis Inc. | 1,051 | 141,054 | ||||||
199,688 | ||||||||
Real Estate Investment Trusts — 1.1% | ||||||||
Americold Realty Trust | 574 | 19,786 | ||||||
Equinix Inc. | 122 | 71,947 | ||||||
91,733 | ||||||||
Retail — 12.3% | ||||||||
BJ's Restaurants Inc. | 37 | 1,472 | ||||||
BJ's Wholesale Club Holdings Inc.(a) | 144 | 2,955 | ||||||
Casey's General Stores Inc. | 66 | 10,617 | ||||||
Cheesecake Factory Inc. (The) | 84 | 3,226 | ||||||
Chipotle Mexican Grill Inc.(a) | 104 | 90,143 | ||||||
Costco Wholesale Corp. | 25 | 7,638 | ||||||
Cracker Barrel Old Country Store Inc. | 30 | 4,588 | ||||||
Darden Restaurants Inc. | 151 | 17,581 |
Security | Shares | Value | ||||||
Retail (continued) | ||||||||
Dunkin' Brands Group Inc. | 272 | $ | 21,240 | |||||
Freshpet Inc.(a)(b) | 107 | 6,728 | ||||||
Jack in the Box Inc. | 54 | 4,415 | ||||||
McDonald's Corp. | 1,889 | 404,189 | ||||||
Shake Shack Inc., Class A(a) | 61 | 4,114 | ||||||
Starbucks Corp. | 4,004 | 339,659 | ||||||
Texas Roadhouse Inc. | 84 | 5,250 | ||||||
Walmart Inc. | 41 | 4,694 | ||||||
Wendy's Co. (The) | 426 | 9,231 | ||||||
Wingstop Inc. | 54 | 5,010 | ||||||
Yum China Holdings Inc. | 817 | 35,188 | ||||||
Yum! Brands Inc. | 830 | 87,789 | ||||||
1,065,727 | ||||||||
Toys, Games & Hobbies — 0.1% | ||||||||
Mattel Inc.(a) | 704 | 10,299 | ||||||
Total Common Stocks — 99.1% | ||||||||
(Cost: $7,767,908) | 8,575,966 | |||||||
Short-Term Investments | ||||||||
Money Market Funds — 1.3% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, | ||||||||
1.78%(c)(d)(e) | 39,558 | 39,582 | ||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.50%(c)(d) | 67,000 | 67,000 | ||||||
106,582 | ||||||||
Total Short-Term Investments — 1.3% | ||||||||
(Cost: $106,575) | 106,582 | |||||||
Total Investments in Securities — 100.4% | ||||||||
(Cost: $7,874,483) | 8,682,548 | |||||||
Other Assets, Less Liabilities — (0.4)% | (30,448 | ) | ||||||
Net Assets — 100.0% | $ | 8,652,100 |
(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 January 31, 2020, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
Affiliated Issuer | Shares Held at 07/31/19 | Net Activity | Shares Held at 01/31/20 | Value at 01/31/20 | Income | Net Realized Gain (Loss)(a) | Change in Unrealized Appreciation (Depreciation) | |||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | 28,007 | 11,551 | 39,558 | $ | 39,582 | $ | 835 | (b) | $ | (5 | ) | $ | 6 | |||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 19,000 | 48,000 | 67,000 | 67,000 | 370 | — | — | |||||||||||||||||||||
$ | 106,582 | $ | 1,205 | $ | (5 | ) | $ | 6 |
(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. |
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® Evolved U.S. Consumer Staples ETF |
January 31, 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 January 31, 2020. The breakdown of the Fund's investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common Stocks | $ | 8,575,966 | $ | — | $ | — | $ | 8,575,966 | ||||||||
Money Market Funds | 106,582 | — | — | 106,582 | ||||||||||||
$ | 8,682,548 | $ | — | $ | — | $ | 8,682,548 |
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® Evolved U.S. Discretionary Spending ETF |
January 31, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Advertising — 0.1% | ||||||||
Interpublic Group of Companies Inc. (The) | 431 | $ | 9,784 | |||||
Airlines — 0.2% | ||||||||
Alaska Air Group Inc. | 208 | 13,435 | ||||||
JetBlue Airways Corp.(a) | 552 | 10,946 | ||||||
Southwest Airlines Co. | 119 | 6,542 | ||||||
30,923 | ||||||||
Apparel — 7.6% | ||||||||
Capri Holdings Ltd.(a) | 665 | 19,923 | ||||||
Carter's Inc. | 280 | 29,700 | ||||||
Columbia Sportswear Co | 144 | 13,524 | ||||||
Crocs Inc.(a) | 272 | 10,312 | ||||||
Deckers Outdoor Corp.(a) | 150 | 28,636 | ||||||
Hanesbrands Inc. | 1,472 | 20,255 | ||||||
NIKE Inc., Class B | 5,219 | 502,590 | ||||||
Oxford Industries Inc. | 96 | 6,662 | ||||||
PVH Corp. | 408 | 35,565 | ||||||
Ralph Lauren Corp. | 241 | 27,354 | ||||||
Skechers U.S.A. Inc., Class A(a) | 672 | 25,126 | ||||||
Steven Madden Ltd. | 446 | 17,198 | ||||||
Tapestry Inc. | 1,480 | 38,140 | ||||||
Under Armour Inc., Class A(a) | 808 | 16,305 | ||||||
Under Armour Inc., Class C, NVS(a) | 824 | 14,799 | ||||||
VF Corp. | 1,513 | 125,534 | ||||||
Wolverine World Wide Inc. | 248 | 7,829 | ||||||
939,452 | ||||||||
Beverages — 0.1% | ||||||||
Constellation Brands Inc., Class A | 53 | 9,980 | ||||||
Building Materials — 0.2% | ||||||||
American Woodmark Corp.(a) | 32 | 3,509 | ||||||
Masco Corp. | 327 | 15,539 | ||||||
19,048 | ||||||||
Chemicals — 0.1% | ||||||||
Valvoline Inc. | 336 | 7,083 | ||||||
Commercial Services — 1.5% | ||||||||
Aaron's Inc. | 288 | 17,096 | ||||||
Avis Budget Group Inc.(a) | 136 | 4,461 | ||||||
Bright Horizons Family Solutions Inc.(a) | 40 | 6,549 | ||||||
Brink's Co. (The) | 72 | 6,062 | ||||||
Cintas Corp. | 144 | 40,172 | ||||||
Euronet Worldwide Inc.(a) | 80 | 12,611 | ||||||
FleetCor Technologies Inc.(a) | 27 | 8,511 | ||||||
Grand Canyon Education Inc.(a) | 72 | 5,636 | ||||||
H&R Block Inc. | 448 | 10,394 | ||||||
ManpowerGroup Inc. | 120 | 10,979 | ||||||
Monro Inc.(b) | 136 | 8,527 | ||||||
PayPal Holdings Inc.(a) | 113 | 12,869 | ||||||
Rent-A-Center Inc./TX | 231 | 6,729 | ||||||
Rollins Inc. | 240 | 9,108 | ||||||
ServiceMaster Global Holdings Inc.(a) | 272 | 9,806 | ||||||
Square Inc., Class A(a) | 229 | 17,104 | ||||||
WW International Inc.(a)(b) | 72 | 2,374 | ||||||
188,988 | ||||||||
Computers — 4.3% | ||||||||
Apple Inc. | 1,720 | 532,357 |
Security | Shares | Value | ||||||
Cosmetics & Personal Care — 5.4% | ||||||||
Coty Inc., Class A | 359 | $ | 3,683 | |||||
Estee Lauder Companies Inc. (The), Class A | 830 | 161,983 | ||||||
Inter Parfums Inc. | 62 | 4,285 | ||||||
Procter & Gamble Co. (The) | 4,007 | 499,352 | ||||||
669,303 | ||||||||
Distribution & Wholesale — 0.9% | ||||||||
Core-Mark Holding Co. Inc. | 118 | 2,766 | ||||||
Fastenal Co. | 847 | 29,543 | ||||||
G-III Apparel Group Ltd.(a) | 232 | 6,313 | ||||||
HD Supply Holdings Inc.(a) | 248 | 10,104 | ||||||
LKQ Corp.(a) | 408 | 13,335 | ||||||
Pool Corp. | 88 | 19,298 | ||||||
SiteOne Landscape Supply Inc.(a) | 72 | 6,952 | ||||||
WW Grainger Inc. | 96 | 29,056 | ||||||
117,367 | ||||||||
Diversified Financial Services — 0.3% | ||||||||
Alliance Data Systems Corp. | 72 | 7,401 | ||||||
LendingTree Inc.(a) | 8 | 2,490 | ||||||
Visa Inc., Class A | 165 | 32,830 | ||||||
42,721 | ||||||||
Entertainment — 0.9% | ||||||||
Churchill Downs Inc. | 79 | 11,406 | ||||||
Cinemark Holdings Inc. | 256 | 8,066 | ||||||
Eldorado Resorts Inc.(a) | 144 | 8,608 | ||||||
Live Nation Entertainment Inc.(a) | 360 | 24,538 | ||||||
Madison Square Garden Co. (The), Class A(a) | 40 | 11,848 | ||||||
Marriott Vacations Worldwide Corp. | 71 | 8,537 | ||||||
Penn National Gaming Inc.(a) | 49 | 1,462 | ||||||
Red Rock Resorts Inc., Class A | 232 | 5,686 | ||||||
Scientific Games Corp./DE, Class A(a) | 88 | 2,186 | ||||||
SeaWorld Entertainment Inc.(a) | 175 | 6,030 | ||||||
Six Flags Entertainment Corp. | 136 | 5,186 | ||||||
Vail Resorts Inc. | 104 | 24,389 | ||||||
117,942 | ||||||||
Food — 1.7% | ||||||||
Beyond Meat Inc.(a) | 67 | 7,398 | ||||||
Flowers Foods Inc. | 360 | 7,751 | ||||||
Grocery Outlet Holding Corp.(a)(b) | 197 | 6,450 | ||||||
Kroger Co. (The) | 3,745 | 100,591 | ||||||
Performance Food Group Co.(a) | 256 | 13,258 | ||||||
Sprouts Farmers Market Inc.(a) | 504 | 7,878 | ||||||
Sysco Corp. | 559 | 45,916 | ||||||
U.S. Foods Holding Corp.(a) | 432 | 17,353 | ||||||
United Natural Foods Inc.(a) | 136 | 979 | ||||||
207,574 | ||||||||
Food Service — 0.2% | ||||||||
Aramark | 640 | 28,250 | ||||||
Holding Companies - Diversified — 0.0% | ||||||||
Cannae Holdings Inc.(a) | 120 | 4,879 | ||||||
Home Builders — 0.1% | ||||||||
Taylor Morrison Home Corp., Class A(a) | 160 | 4,141 | ||||||
Toll Brothers Inc. | 208 | 9,227 | ||||||
13,368 | ||||||||
Home Furnishings — 0.1% | ||||||||
Sleep Number Corp.(a) | 94 | 4,850 | ||||||
Tempur Sealy International Inc.(a) | 136 | 12,460 | ||||||
17,310 |
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® Evolved U.S. Discretionary Spending ETF |
January 31, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Household Products & Wares — 0.3% | ||||||||
Helen of Troy Ltd.(a) | 41 | $ | 7,751 | |||||
Kimberly-Clark Corp. | 208 | 29,794 | ||||||
Spectrum Brands Holdings Inc. | 32 | 1,965 | ||||||
39,510 | ||||||||
Housewares — 0.2% | ||||||||
Newell Brands Inc. | 758 | 14,804 | ||||||
Scotts Miracle-Gro Co. (The) | 64 | 7,855 | ||||||
Tupperware Brands Corp. | 88 | 551 | ||||||
23,210 | ||||||||
Internet — 15.3% | ||||||||
Amazon.com Inc.(a) | 734 | 1,474,401 | ||||||
Booking Holdings Inc.(a) | 89 | 162,919 | ||||||
Cars.com Inc.(a) | 120 | 1,400 | ||||||
eBay Inc. | 985 | 33,057 | ||||||
Etsy Inc.(a) | 232 | 11,324 | ||||||
Expedia Group Inc. | 191 | 20,714 | ||||||
Groupon Inc.(a) | 968 | 2,788 | ||||||
Grubhub Inc.(a) | 176 | 9,530 | ||||||
MercadoLibre Inc.(a)(b) | 104 | 68,952 | ||||||
Pinterest Inc., Class A(a)(b) | 743 | 16,368 | ||||||
Stamps.com Inc.(a) | 24 | 1,788 | ||||||
Stitch Fix Inc., Class A(a) | 110 | 2,519 | ||||||
TripAdvisor Inc. | 200 | 5,464 | ||||||
Uber Technologies Inc.(a) | 1,899 | 68,915 | ||||||
Wayfair Inc., Class A(a)(b) | 249 | 23,331 | ||||||
1,903,470 | ||||||||
Leisure Time — 1.2% | ||||||||
Carnival Corp. | 1,046 | 45,532 | ||||||
Norwegian Cruise Line Holdings Ltd.(a) | 417 | 22,456 | ||||||
Planet Fitness Inc., Class A(a) | 416 | 33,609 | ||||||
Polaris Inc. | 56 | 5,143 | ||||||
Royal Caribbean Cruises Ltd. | 313 | 36,646 | ||||||
143,386 | ||||||||
Lodging — 3.3% | ||||||||
Boyd Gaming Corp. | 166 | 4,955 | ||||||
Caesars Entertainment Corp.(a) | 704 | 9,624 | ||||||
Choice Hotels International Inc.(b) | 128 | 12,826 | ||||||
Extended Stay America Inc. | 344 | 4,444 | ||||||
Hilton Grand Vacations Inc.(a) | 168 | 5,361 | ||||||
Hilton Worldwide Holdings Inc. | 960 | 103,488 | ||||||
Hyatt Hotels Corp., Class A | 128 | 10,821 | ||||||
Las Vegas Sands Corp. | 992 | 64,787 | ||||||
Marriott International Inc./MD, Class A | 666 | 93,280 | ||||||
MGM Resorts International | 1,144 | 35,533 | ||||||
Wyndham Destinations Inc. | 328 | 15,918 | ||||||
Wyndham Hotels & Resorts Inc. | 383 | 21,896 | ||||||
Wynn Resorts Ltd. | 200 | 25,232 | ||||||
408,165 | ||||||||
Office Furnishings — 0.0% | ||||||||
Herman Miller Inc. | 96 | 3,710 | ||||||
Oil & Gas — 0.1% | ||||||||
Murphy USA Inc.(a) | 96 | 9,808 | ||||||
Pharmaceuticals — 0.1% | ||||||||
Herbalife Nutrition Ltd.(a) | 190 | 7,381 | ||||||
Real Estate — 0.0% | ||||||||
RE/MAX Holdings Inc., Class A | 56 | 2,144 |
Security | Shares | Value | ||||||
Real Estate Investment Trusts — 0.4% | ||||||||
Apple Hospitality REIT Inc. | 336 | $ | 5,047 | |||||
Host Hotels & Resorts Inc. | 1,064 | 17,386 | ||||||
Macerich Co. (The) | 208 | 4,640 | ||||||
Park Hotels & Resorts Inc. | 240 | 5,266 | ||||||
Ruth's Hospitality Group Inc. | 144 | 2,952 | ||||||
Ryman Hospitality Properties Inc. | 64 | 5,442 | ||||||
Tailored Brands Inc. | 280 | 1,114 | ||||||
Taubman Centers Inc. | 144 | 3,804 | ||||||
45,651 | ||||||||
Retail — 53.8% | ||||||||
Abercrombie & Fitch Co., Class A | 415 | 6,789 | ||||||
Advance Auto Parts Inc. | 288 | 37,944 | ||||||
American Eagle Outfitters Inc. | 936 | 13,478 | ||||||
Ascena Retail Group Inc.(a) | 51 | 224 | ||||||
At Home Group Inc.(a) | 233 | 1,319 | ||||||
AutoNation Inc.(a) | 168 | 7,130 | ||||||
AutoZone Inc.(a) | 95 | 100,506 | ||||||
Beacon Roofing Supply Inc.(a) | 96 | 3,179 | ||||||
Bed Bath & Beyond Inc. | 685 | 9,761 | ||||||
Best Buy Co. Inc. | 849 | 71,902 | ||||||
Big Lots Inc. | 248 | 6,711 | ||||||
BJ's Restaurants Inc. | 72 | 2,864 | ||||||
BJ's Wholesale Club Holdings Inc.(a)(b) | 561 | 11,512 | ||||||
Bloomin' Brands Inc. | 384 | 7,976 | ||||||
Boot Barn Holdings Inc.(a) | 173 | 7,261 | ||||||
Brinker International Inc. | 191 | 8,154 | ||||||
Buckle Inc. (The) | 152 | 3,710 | ||||||
Burlington Stores Inc.(a) | 363 | 78,942 | ||||||
Caleres Inc. | 200 | 3,510 | ||||||
CarMax Inc.(a) | 544 | 52,790 | ||||||
Carvana Co.(a) | 94 | 7,450 | ||||||
Casey's General Stores Inc. | 168 | 27,024 | ||||||
Cheesecake Factory Inc. (The) | 168 | 6,451 | ||||||
Children's Place Inc. (The) | 94 | 5,609 | ||||||
Chipotle Mexican Grill Inc.(a) | 81 | 70,208 | ||||||
Costco Wholesale Corp. | 2,091 | 638,842 | ||||||
Cracker Barrel Old Country Store Inc. | 112 | 17,128 | ||||||
Darden Restaurants Inc. | 536 | 62,406 | ||||||
Dave & Buster's Entertainment Inc. | 169 | 7,463 | ||||||
Denny's Corp.(a) | 288 | 5,895 | ||||||
Designer Brands Inc., Class A | 384 | 5,468 | ||||||
Dick's Sporting Goods Inc. | 345 | 15,259 | ||||||
Dine Brands Global Inc. | 80 | 6,820 | ||||||
Dollar General Corp. | 1,288 | 197,592 | ||||||
Dollar Tree Inc.(a) | 1,279 | 111,363 | ||||||
Domino's Pizza Inc. | 190 | 53,532 | ||||||
Dunkin' Brands Group Inc. | 200 | 15,618 | ||||||
FirstCash Inc. | 152 | 13,219 | ||||||
Five Below Inc.(a) | 312 | 35,325 | ||||||
Floor & Decor Holdings Inc., Class A(a) | 280 | 13,807 | ||||||
Foot Locker Inc. | 512 | 19,441 | ||||||
Gap Inc. (The) | 1,672 | 29,110 | ||||||
Genesco Inc.(a) | 112 | 4,404 | ||||||
Genuine Parts Co. | 248 | 23,205 | ||||||
Home Depot Inc. (The) | 4,533 | 1,033,977 | ||||||
Jack in the Box Inc. | 90 | 7,358 | ||||||
Kohl’s Corp. | 913 | 39,031 | ||||||
L Brands Inc. | 1,406 | 32,563 | ||||||
La-Z-Boy Inc. | 144 | 4,412 | ||||||
Lithia Motors Inc., Class A | 56 | 7,596 |
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® Evolved U.S. Discretionary Spending ETF |
January 31, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Retail (continued) | ||||||||
Lowe’s Companies Inc. | 2,878 | $ | 334,539 | |||||
Lululemon Athletica Inc.(a) | 650 | 155,603 | ||||||
Macy's Inc. | 1,615 | 25,759 | ||||||
McDonald's Corp. | 2,237 | 478,651 | ||||||
MSC Industrial Direct Co. Inc., Class A | 80 | 5,446 | ||||||
National Vision Holdings Inc.(a) | 200 | 6,824 | ||||||
Nordstrom Inc. | 625 | 23,038 | ||||||
Ollie's Bargain Outlet Holdings Inc.(a) | 326 | 17,291 | ||||||
O'Reilly Automotive Inc.(a) | 354 | 143,759 | ||||||
Papa John's International Inc. | 94 | 6,089 | ||||||
PriceSmart Inc. | 112 | 6,861 | ||||||
Qurate Retail Inc. Series A(a) | 423 | 3,608 | ||||||
RH(a)(b) | 90 | 18,788 | ||||||
Ross Stores Inc. | 1,987 | 222,922 | ||||||
Sally Beauty Holdings Inc.(a) | 648 | 9,947 | ||||||
Shake Shack Inc., Class A(a)(b) | 96 | 6,475 | ||||||
Signet Jewelers Ltd. | 287 | 6,977 | ||||||
Starbucks Corp. | 2,947 | 249,994 | ||||||
Target Corp. | 2,728 | 302,099 | ||||||
Texas Roadhouse Inc. | 288 | 18,000 | ||||||
Tiffany & Co. | 475 | 63,659 | ||||||
TJX Companies Inc. (The) | 6,153 | 363,273 | ||||||
Tractor Supply Co. | 631 | 58,651 | ||||||
Ulta Salon Cosmetics & Fragrance Inc.(a) | 307 | 82,248 | ||||||
Urban Outfitters Inc.(a) | 400 | 10,240 | ||||||
Walgreens Boots Alliance Inc. | 2,065 | 105,005 | ||||||
Walmart Inc. | 6,744 | 772,121 | ||||||
Wendy's Co. (The) | 680 | 14,736 | ||||||
Williams-Sonoma Inc. | 406 | 28,452 | ||||||
Wingstop Inc. | 96 | 8,906 | ||||||
Yum China Holdings Inc. | 1,259 | 54,225 | ||||||
Yum! Brands Inc. | 1,183 | 125,126 | ||||||
6,682,550 | ||||||||
Software — 0.1% | ||||||||
Take-Two Interactive Software Inc.(a) | 72 | 8,974 |
Security | Shares | Value | ||||||
Textiles — 0.0% | ||||||||
UniFirst Corp./MA | 32 | $ | 6,526 | |||||
Toys, Games & Hobbies — 0.2% | ||||||||
Hasbro Inc. | 192 | 19,559 | ||||||
Mattel Inc.(a) | 606 | 8,866 | ||||||
28,425 | ||||||||
Transportation — 0.4% | ||||||||
FedEx Corp. | 336 | 48,599 | ||||||
Total Common Stocks — 99.1% | ||||||||
(Cost: $11,312,766) | 12,317,838 | |||||||
Short-Term Investments | ||||||||
Money Market Funds — 2.2% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, | ||||||||
1.78%(c)(d)(e) | 167,157 | 167,258 | ||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, | ||||||||
1.50%(c)(d) | 106,000 | 106,000 | ||||||
273,258 | ||||||||
Total Short-Term Investments — 2.2% | ||||||||
(Cost: $273,237) | 273,258 | |||||||
Total Investments in Securities — 101.3% | ||||||||
(Cost: $11,586,003) | 12,591,096 | |||||||
Other Assets, Less Liabilities — (1.3)% | (162,425 | ) | ||||||
Net Assets — 100.0% | $ | 12,428,671 |
(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 January 31, 2020, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
Affiliated Issuer | Shares Held at 07/31/19 | Net Activity | Shares Held at 01/31/20 | Value at 01/31/20 | Income | Net Realized Gain (Loss) | (a) | Change in Unrealized Appreciation (Depreciation) | ||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | 27,814 | 139,343 | 167,157 | $ | 167,258 | $ | 333 | (b) | $ | (16 | ) | $ | 17 | |||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 29,000 | 77,000 | 106,000 | 106,000 | 672 | — | — | |||||||||||||||||||||
$ | 273,258 | $ | 1,005 | $ | (16 | ) | $ | 17 |
(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.
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® Evolved U.S. Discretionary Spending ETF |
January 31, 2020 |
Fair Value Measurements (continued)
The following table summarizes the value of the Fund's investments according to the fair value hierarchy as of January 31, 2020. The breakdown of the Fund's investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common Stocks | $ | 12,317,838 | $ | — | $ | — | $ | 12,317,838 | ||||||||
Money Market Funds | 273,258 | — | — | 273,258 | ||||||||||||
$ | 12,591,096 | $ | — | $ | — | $ | 12,591,096 |
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® Evolved U.S. Financials ETF |
January 31, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Banks — 42.4% | ||||||||
Ameris Bancorp. | 64 | $ | 2,572 | |||||
Associated Banc-Corp. | 347 | 6,916 | ||||||
Atlantic Union Bankshares Corp. | 140 | 4,717 | ||||||
BancFirst Corp. | 46 | 2,659 | ||||||
BancorpSouth Bank | 120 | 3,428 | ||||||
Bank of America Corp. | 7,157 | 234,964 | ||||||
Bank of Hawaii Corp. | 94 | 8,422 | ||||||
Bank of New York Mellon Corp. (The) | 1,248 | 55,885 | ||||||
Bank OZK | 226 | 6,143 | ||||||
BankUnited Inc. | 216 | 7,128 | ||||||
Banner Corp. | 52 | 2,681 | ||||||
BOK Financial Corp. | 53 | 4,182 | ||||||
Bryn Mawr Bank Corp. | 63 | 2,364 | ||||||
Cathay General BanCorp. | 180 | 6,491 | ||||||
CenterState Bank Corp. | 173 | 3,903 | ||||||
CIT Group Inc. | 167 | 7,634 | ||||||
Citigroup Inc. | 2,831 | 210,655 | ||||||
Citizens Financial Group Inc. | 830 | 30,942 | ||||||
City Holding Co. | 40 | 3,027 | ||||||
Columbia Banking System Inc. | 153 | 5,921 | ||||||
Comerica Inc. | 264 | 16,146 | ||||||
Commerce Bancshares Inc. | 210 | 14,209 | ||||||
Community Bank System Inc. | 114 | 7,555 | ||||||
ConnectOne Bancorp. Inc. | 76 | 1,794 | ||||||
Cullen/Frost Bankers Inc. | 118 | 10,521 | ||||||
CVB Financial Corp. | 243 | 5,047 | ||||||
Eagle Bancorp. Inc. | 67 | 2,928 | ||||||
East West Bancorp. Inc. | 288 | 13,202 | ||||||
Enterprise Financial Services Corp. | 58 | 2,524 | ||||||
Fifth Third BanCorp. | 1,330 | 37,838 | ||||||
First BanCorp./Puerto Rico | 384 | 3,560 | ||||||
First Bancorp./Southern Pines NC | 71 | 2,519 | ||||||
First Busey Corp. | 112 | 2,856 | ||||||
First Citizens BancShares Inc./NC, Class A | 15 | 7,902 | ||||||
First Commonwealth Financial Corp. | 268 | 3,623 | ||||||
First Financial Bancorp. | 210 | 5,048 | ||||||
First Financial Bankshares Inc. | 284 | 9,520 | ||||||
First Hawaiian Inc. | 121 | 3,516 | ||||||
First Horizon National Corp. | 652 | 10,432 | ||||||
First Interstate BancSystem Inc., Class A | 83 | 3,196 | ||||||
First Midwest Bancorp. Inc. | 230 | 4,586 | ||||||
Flagstar Bancorp. Inc. | 62 | 2,185 | ||||||
FNB Corp. | 695 | 8,111 | ||||||
Fulton Financial Corp. | 382 | 6,292 | ||||||
Glacier Bancorp. Inc. | 172 | 7,288 | ||||||
Goldman Sachs Group Inc. (The) | 522 | 124,105 | ||||||
Great Western Bancorp. Inc. | 127 | 3,753 | ||||||
Hancock Whitney Corp. | 169 | 6,716 | ||||||
Hanmi Financial Corp. | 78 | 1,312 | ||||||
Heartland Financial USA Inc. | 71 | 3,473 | ||||||
Heritage Financial Corp./WA | 75 | 1,934 | ||||||
Hilltop Holdings Inc. | 160 | 3,622 | ||||||
Home BancShares Inc./AR | 318 | 6,080 | ||||||
Hope Bancorp Inc. | 282 | 3,921 | ||||||
Huntington Bancshares Inc./OH | 1,901 | 25,797 | ||||||
IBERIABANK Corp. | 112 | 8,144 | ||||||
Independent Bank Corp. | 58 | 4,188 | ||||||
Independent Bank Group Inc. | 43 | 2,301 |
Security | Shares | Value | ||||||
Banks (continued) | ||||||||
International Bancshares Corp. | 134 | $ | 5,280 | |||||
JPMorgan Chase & Co. | 1,820 | 240,895 | ||||||
KeyCorp. | 1,838 | 34,389 | ||||||
Lakeland Bancorp. Inc. | 132 | 2,144 | ||||||
Lakeland Financial Corp. | 67 | 3,178 | ||||||
M&T Bank Corp. | 119 | 20,054 | ||||||
Meta Financial Group Inc. | 57 | 2,122 | ||||||
Morgan Stanley | 1,867 | 97,569 | ||||||
National Bank Holdings Corp., Class A | 71 | 2,315 | ||||||
NBT Bancorp. Inc. | 113 | 4,270 | ||||||
Northern Trust Corp. | 373 | 36,483 | ||||||
OFG Bancorp. | 94 | 1,853 | ||||||
Old National Bancorp./IN | 329 | 5,892 | ||||||
PacWest Bancorp. | 229 | 8,026 | ||||||
Park National Corp. | 33 | 3,134 | ||||||
Pinnacle Financial Partners Inc. | 147 | 8,682 | ||||||
Popular Inc. | 194 | 10,856 | ||||||
Prosperity Bancshares Inc. | 191 | 13,408 | ||||||
Regions Financial Corp. | 1,846 | 28,742 | ||||||
Renasant Corp. | 114 | 3,640 | ||||||
S&T Bancorp. Inc. | 84 | 3,158 | ||||||
Sandy Spring Bancorp. Inc. | 78 | 2,714 | ||||||
Seacoast Banking Corp. of Florida(a) | 99 | 2,688 | ||||||
ServisFirst Bancshares Inc. | 94 | 3,454 | ||||||
Simmons First National Corp., Class A | 177 | 4,244 | ||||||
South State Corp. | 82 | 6,200 | ||||||
Southside Bancshares Inc. | 85 | 2,982 | ||||||
State Street Corp. | 611 | 46,210 | ||||||
SVB Financial Group(a) | 95 | 22,831 | ||||||
Synovus Financial Corp. | 297 | 10,401 | ||||||
TCF Financial Corp. | 279 | 11,796 | ||||||
Texas Capital Bancshares Inc.(a) | 54 | 2,968 | ||||||
Tompkins Financial Corp. | 38 | 3,271 | ||||||
Truist Financial Corp. | 2,122 | 109,432 | ||||||
Trustmark Corp. | 72 | 2,303 | ||||||
U.S. BanCorp. | 2,552 | 135,817 | ||||||
UMB Financial Corp. | 94 | 6,247 | ||||||
Umpqua Holdings Corp. | 398 | 6,726 | ||||||
United Community Banks Inc./GA | 128 | 3,574 | ||||||
Valley National BanCorp. | 594 | 6,255 | ||||||
Veritex Holdings Inc. | 64 | 1,812 | ||||||
Webster Financial Corp. | 186 | 8,344 | ||||||
Wells Fargo & Co. | 4,467 | 209,681 | ||||||
WesBanco Inc. | 103 | 3,411 | ||||||
Westamerica Bancorp. | 61 | 3,865 | ||||||
Western Alliance Bancorp. | 152 | 8,395 | ||||||
Wintrust Financial Corp. | 116 | 7,340 | ||||||
Zions Bancorp. N.A | 357 | 16,240 | ||||||
2,183,669 | ||||||||
Commercial Services — 4.7% | ||||||||
Automatic Data Processing Inc. | 211 | 36,163 | ||||||
CoreLogic Inc. | 64 | 2,976 | ||||||
Equifax Inc. | 78 | 11,692 | ||||||
Euronet Worldwide Inc.(a) | 25 | 3,941 | ||||||
FleetCor Technologies Inc.(a) | 42 | 13,240 | ||||||
FTI Consulting Inc.(a) | 21 | 2,521 | ||||||
Global Payments Inc. | 180 | 35,181 | ||||||
Green Dot Corp., Class A(a) | 57 | 1,715 | ||||||
HealthEquity Inc.(a) | 37 | 2,444 | ||||||
Insperity Inc. | 29 | 2,534 |
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® Evolved U.S. Financials ETF |
January 31, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Commercial Services (continued) | ||||||||
MarketAxess Holdings Inc. | 30 | $ | 10,625 | |||||
Moody's Corp. | 141 | 36,207 | ||||||
Morningstar Inc. | 17 | 2,667 | ||||||
S&P Global Inc. | 148 | 43,472 | ||||||
Service Corp. International | 111 | 5,323 | ||||||
Verisk Analytics Inc. | 127 | 20,634 | ||||||
WEX Inc.(a) | 37 | 8,026 | ||||||
239,361 | ||||||||
Computers — 0.1% | ||||||||
Genpact Ltd. | 66 | 2,922 | ||||||
Diversified Financial Services — 15.2% | ||||||||
Affiliated Managers Group Inc. | 61 | 4,871 | ||||||
Alliance Data Systems Corp. | 30 | 3,084 | ||||||
Ally Financial Inc. | 651 | 20,852 | ||||||
American Express Co. | 830 | 107,792 | ||||||
Ameriprise Financial Inc. | 201 | 33,247 | ||||||
Ares Management Corp., Class A | 76 | 2,741 | ||||||
Artisan Partners Asset Management Inc., Class A | 70 | 2,338 | ||||||
BGC Partners Inc., Class A | 217 | 1,252 | ||||||
Boston Private Financial Holdings Inc. | 128 | 1,459 | ||||||
Capital One Financial Corp. | 723 | 72,155 | ||||||
Cboe Global Markets Inc. | 101 | 12,445 | ||||||
Charles Schwab Corp. (The) | 1,668 | 75,977 | ||||||
CME Group Inc. | 230 | 49,935 | ||||||
Credit Acceptance Corp.(a) | 18 | 7,722 | ||||||
Discover Financial Services | 410 | 30,803 | ||||||
E*TRADE Financial Corp. | 370 | 15,769 | ||||||
Eaton Vance Corp., NVS | 167 | 7,640 | ||||||
Evercore Inc., Class A | 38 | 2,912 | ||||||
Federated Investors Inc., Class B | 132 | 4,782 | ||||||
Franklin Resources Inc. | 415 | 10,500 | ||||||
Interactive Brokers Group Inc., Class A | 71 | 3,337 | ||||||
Intercontinental Exchange Inc. | 459 | 45,781 | ||||||
Invesco Ltd. | 336 | 5,813 | ||||||
Janus Henderson Group PLC | 264 | 6,671 | ||||||
Jefferies Financial Group Inc. | 307 | 6,644 | ||||||
KKR & Co. Inc., Class A, NVS | 539 | 17,194 | ||||||
Legg Mason Inc. | 140 | 5,481 | ||||||
LendingTree Inc.(a)(b) | 5 | 1,556 | ||||||
LPL Financial Holdings Inc. | 116 | 10,687 | ||||||
Mastercard Inc., Class A | 135 | 42,652 | ||||||
Moelis & Co., Class A | 41 | 1,476 | ||||||
Nasdaq Inc. | 105 | 12,228 | ||||||
Navient Corp. | 271 | 3,897 | ||||||
OneMain Holdings Inc. | 116 | 4,915 | ||||||
Raymond James Financial Inc. | 218 | 19,932 | ||||||
Santander Consumer USA Holdings Inc. | 110 | 2,928 | ||||||
SEI Investments Co. | 153 | 9,985 | ||||||
SLM Corp. | 711 | 7,764 | ||||||
Stifel Financial Corp. | 123 | 7,957 | ||||||
Synchrony Financial | 829 | 26,868 | ||||||
T Rowe Price Group Inc. | 294 | 39,258 | ||||||
TD Ameritrade Holding Corp. | 275 | 13,057 | ||||||
Visa Inc., Class A | 39 | 7,760 | ||||||
Waddell & Reed Financial Inc., Class A | 137 | 2,189 | ||||||
Western Union Co. (The) | 326 | 8,769 | ||||||
783,075 | ||||||||
Electric — 0.1% | ||||||||
Hawaiian Electric Industries Inc. | 139 | 6,799 |
Security | Shares | Value | ||||||
Engineering & Construction — 0.0% | ||||||||
frontdoor Inc.(a) | 55 | $ | 2,342 | |||||
Forest Products & Paper — 0.1% | ||||||||
International Paper Co. | 156 | 6,352 | ||||||
Health Care - Services — 3.2% | ||||||||
Anthem Inc. | 133 | 35,282 | ||||||
Centene Corp.(a) | 121 | 7,600 | ||||||
Cigna Corp.(a) | 275 | 52,905 | ||||||
Molina Healthcare Inc.(a) | 33 | 4,058 | ||||||
UnitedHealth Group Inc. | 247 | 67,295 | ||||||
167,140 | ||||||||
Home Builders — 0.2% | ||||||||
NVR Inc.(a) | 3 | 11,451 | ||||||
Household Products & Wares — 0.0% | ||||||||
Spectrum Brands Holdings Inc. | 8 | 491 | ||||||
Insurance — 25.4% | ||||||||
Aflac Inc. | 1,206 | 62,193 | ||||||
Alleghany Corp.(a) | 21 | 16,751 | ||||||
Allstate Corp. (The) | 527 | 62,471 | ||||||
American Financial Group Inc./OH | 139 | 15,122 | ||||||
American International Group Inc. | 1,525 | 76,646 | ||||||
American National Insurance Co. | 22 | 2,424 | ||||||
Aon PLC. | 181 | 39,865 | ||||||
Arch Capital Group Ltd.(a) | 563 | 24,862 | ||||||
Argo Group International Holdings Ltd. | 56 | 3,674 | ||||||
Arthur J Gallagher & Co. | 250 | 25,643 | ||||||
Assurant Inc. | 74 | 9,661 | ||||||
Assured Guaranty Ltd. | 85 | 3,896 | ||||||
Athene Holding Ltd., Class A(a) | 201 | 8,756 | ||||||
Axis Capital Holdings Ltd. | 134 | 8,610 | ||||||
Berkshire Hathaway Inc., Class B(a) | 586 | 131,516 | ||||||
Brighthouse Financial Inc.(a) | 154 | 5,991 | ||||||
Brown & Brown Inc. | 331 | 14,862 | ||||||
Cincinnati Financial Corp. | 296 | 31,065 | ||||||
CNA Financial Corp. | 66 | 2,946 | ||||||
CNO Financial Group Inc. | 209 | 3,676 | ||||||
Employers Holdings Inc. | 56 | 2,388 | ||||||
Enstar Group Ltd.(a) | 19 | 3,711 | ||||||
Equitable Holdings Inc. | 602 | 14,460 | ||||||
Erie Indemnity Co., Class A, NVS | 27 | 4,496 | ||||||
Essent Group Ltd. | 131 | 6,499 | ||||||
Everest Re Group Ltd. | 71 | 19,636 | ||||||
FGL Holdings | 249 | 2,403 | ||||||
Fidelity National Financial Inc. | 395 | 19,256 | ||||||
First American Financial Corp. | 212 | 13,140 | ||||||
Genworth Financial Inc., Class A(a) | 1,014 | 4,157 | ||||||
Globe Life Inc. | 209 | 21,790 | ||||||
Hanover Insurance Group Inc. (The) | 81 | 11,225 | ||||||
Hartford Financial Services Group Inc. (The) | 659 | 39,066 | ||||||
Horace Mann Educators Corp. | 85 | 3,656 | ||||||
Kemper Corp. | 83 | 6,177 | ||||||
Kinsale Capital Group Inc.(b) | 39 | 4,455 | ||||||
Lincoln National Corp. | 371 | 20,212 | ||||||
Loews Corp. | 240 | 12,348 | ||||||
Markel Corp.(a) | 19 | 22,286 | ||||||
Marsh & McLennan Companies Inc. | 605 | 67,675 | ||||||
Mercury General Corp. | 60 | 2,945 | ||||||
MetLife Inc. | 1,337 | 66,462 |
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® Evolved U.S. Financials ETF |
January 31, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Insurance (continued) | ||||||||
MGIC Investment Corp. | 653 | $ | 9,005 | |||||
National General Holdings Corp. | 118 | 2,569 | ||||||
NMI Holdings Inc., Class A(a) | 139 | 4,437 | ||||||
Old Republic International Corp. | 379 | 8,546 | ||||||
Primerica Inc. | 56 | 6,639 | ||||||
Principal Financial Group Inc. | 503 | 26,634 | ||||||
ProAssurance Corp. | 105 | 3,189 | ||||||
Progressive Corp. (The) | 981 | 79,157 | ||||||
Prudential Financial Inc. | 723 | 65,836 | ||||||
Radian Group Inc. | 374 | 9,159 | ||||||
RenaissanceRe Holdings Ltd. | 75 | 14,208 | ||||||
RLI Corp. | 90 | 8,371 | ||||||
Safety Insurance Group Inc. | 33 | 3,039 | ||||||
Selective Insurance Group Inc. | 112 | 7,420 | ||||||
Travelers Companies Inc. (The) | 454 | 59,755 | ||||||
Universal Insurance Holdings Inc. | 64 | 1,558 | ||||||
Unum Group | 394 | 10,516 | ||||||
Voya Financial Inc. | 280 | 16,724 | ||||||
White Mountains Insurance Group Ltd. | 6 | 6,703 | ||||||
Willis Towers Watson PLC. | 116 | 24,510 | ||||||
WR Berkley Corp. | 283 | 20,809 | ||||||
1,307,857 | ||||||||
Internet — 0.1% | ||||||||
Lyft Inc., Class A(a) | 98 | 4,653 | ||||||
Machinery — 0.7% | ||||||||
Caterpillar Inc. | 257 | 33,757 | ||||||
Media — 0.1% | ||||||||
FactSet Research Systems Inc. | 16 | 4,578 | ||||||
Pharmaceuticals — 0.6% | ||||||||
CVS Health Corp. | 491 | 33,300 | ||||||
Private Equity — 0.7% | ||||||||
Blackstone Group Inc. (The), Class A | 581 | 35,482 | ||||||
Real Estate Investment Trusts — 0.7% | ||||||||
AGNC Investment Corp. | 213 | 3,960 | ||||||
Annaly Capital Management Inc. | 930 | 9,077 | ||||||
MFA Financial Inc. | 382 | 2,980 | ||||||
New Residential Investment Corp. | 268 | 4,486 | ||||||
Two Harbors Investment Corp. | 150 | 2,289 | ||||||
Weyerhaeuser Co. | 492 | 14,243 | ||||||
37,035 | ||||||||
Retail — 0.1% | ||||||||
FirstCash Inc. | 30 | 2,609 | ||||||
Savings & Loans — 1.4% | ||||||||
Axos Financial Inc.(a) | 95 | 2,676 | ||||||
Berkshire Hills Bancorp. Inc. | 75 | 2,111 | ||||||
Brookline Bancorp. Inc. | 175 | 2,660 |
Security | Shares | Value | ||||||
Savings & Loans (continued) | ||||||||
Capitol Federal Financial Inc. | 292 | $ | 3,849 | |||||
Investors Bancorp. Inc. | 501 | 6,055 | ||||||
Meridian Bancorp. Inc. | 113 | 2,033 | ||||||
New York Community Bancorp. Inc. | 937 | 10,363 | ||||||
Northwest Bancshares Inc. | 224 | 3,522 | ||||||
OceanFirst Financial Corp. | 97 | 2,256 | ||||||
Pacific Premier Bancorp. Inc. | 95 | 2,831 | ||||||
People's United Financial Inc. | 759 | 11,704 | ||||||
Provident Financial Services Inc. | 140 | 3,193 | ||||||
Sterling Bancorp./DE | 450 | 9,000 | ||||||
Washington Federal Inc. | 174 | 5,916 | ||||||
WSFS Financial Corp. | 118 | 4,707 | ||||||
72,876 | ||||||||
Semiconductors — 0.4% | ||||||||
Intel Corp. | 359 | 22,951 | ||||||
Software — 2.8% | ||||||||
Black Knight Inc.(a) | 48 | 3,212 | ||||||
Broadridge Financial Solutions Inc. | 90 | 10,723 | ||||||
Fidelity National Information Services Inc. | 456 | 65,509 | ||||||
Fiserv Inc.(a) | 277 | 32,855 | ||||||
MSCI Inc. | 47 | 13,433 | ||||||
Paychex Inc. | 121 | 10,378 | ||||||
SS&C Technologies Holdings Inc. | 91 | 5,734 | ||||||
141,844 | ||||||||
Total Common Stocks — 99.0% | ||||||||
(Cost: $4,876,183) | 5,100,544 | |||||||
Short-Term Investments | ||||||||
Money Market Funds — 1.0% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, | ||||||||
1.78%(c)(d)(e) | 6,180 | 6,184 | ||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.50%(c)(d) | 44,000 | 44,000 | ||||||
50,184 | ||||||||
Total Short-Term Investments — 1.0% | ||||||||
(Cost: $50,183) | 50,184 | |||||||
Total Investments in Securities — 100.0% | ||||||||
(Cost: $4,926,366) | 5,150,728 | |||||||
Other Assets, Less Liabilities — (0.0)% | . | (1,126 | ) | |||||
Net Assets — 100.0% | $ | 5,149,602 |
(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. |
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® Evolved U.S. Financials ETF |
January 31, 2020 |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended January 31, 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 | 07/31/19 | Net Activity | 01/31/20 | 01/31/20 | Income | Gain (Loss) | (a) | (Depreciation) | ||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | 1,490 | 4,960 | 6,180 | $ | 6,184 | $ | 23 | (b) | $ | (4 | ) | $ | 1 | |||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 24,000 | 20,000 | 44,000 | 44,000 | 215 | — | — | |||||||||||||||||||||
$ | 50,184 | $ | 238 | $ | (4 | ) | $ | 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.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of January 31, 2020. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common Stocks | $ | 5,100,544 | $ | — | $ | — | $ | 5,100,544 | ||||||||
Money Market Funds | 50,184 | — | — | 50,184 | ||||||||||||
$ | 5,150,728 | $ | — | $ | — | $ | 5,150,728 |
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® Evolved U.S. Healthcare Staples ETF |
January 31, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Aerospace & Defense — 0.4% | ||||||||
Lockheed Martin Corp. | 30 | $ | 12,843 | |||||
Northrop Grumman Corp. | 96 | 35,959 | ||||||
48,802 | ||||||||
Biotechnology — 3.2% | ||||||||
Amgen Inc. | 38 | 8,210 | ||||||
Bio-Rad Laboratories Inc., Class A(a) | 86 | 31,039 | ||||||
Exact Sciences Corp.(a) | 665 | 62,031 | ||||||
Guardant Health Inc.(a) | 217 | 16,501 | ||||||
Illumina Inc.(a) | 854 | 247,720 | ||||||
Myriad Genetics Inc.(a) | 368 | 10,175 | ||||||
NeoGenomics Inc.(a) | 480 | 15,470 | ||||||
Veracyte Inc.(a) | 280 | 7,350 | ||||||
398,496 | ||||||||
Commercial Services — 0.7% | ||||||||
Adtalem Global Education Inc.(a) | 159 | 5,487 | ||||||
AMN Healthcare Services Inc.(a) | 264 | 17,788 | ||||||
Bright Horizons Family Solutions Inc.(a) | 128 | 20,958 | ||||||
Grand Canyon Education Inc.(a) | 122 | 9,550 | ||||||
Healthcare Services Group Inc. | 287 | 7,347 | ||||||
HealthEquity Inc.(a) | 87 | 5,747 | ||||||
HMS Holdings Corp.(a) | 520 | 14,206 | ||||||
Laureate Education Inc., Class A(a) | 272 | 5,669 | ||||||
Strategic Education Inc. | 40 | 6,492 | ||||||
93,244 | ||||||||
Computers — 0.3% | ||||||||
Leidos Holdings Inc. | 167 | 16,779 | ||||||
MAXIMUS Inc. | 239 | 17,148 | ||||||
33,927 | ||||||||
Electrical Components & Equipment — 0.1% | ||||||||
Novanta Inc.(a) | 143 | 12,974 | ||||||
Electronics — 1.2% | ||||||||
Agilent Technologies Inc. | 957 | 79,010 | ||||||
OSI Systems Inc.(a) | 72 | 6,231 | ||||||
PerkinElmer Inc. | 378 | 34,957 | ||||||
Waters Corp.(a) | 145 | 32,450 | ||||||
152,648 | ||||||||
Engineering & Construction — 0.1% | ||||||||
AECOM(a) | 168 | 8,103 | ||||||
Environmental Control — 0.1% | ||||||||
Stericycle Inc.(a) | 111 | 6,957 | ||||||
Health Care - Products — 46.1% | ||||||||
Abbott Laboratories | 9,479 | 826,000 | ||||||
ABIOMED Inc.(a) | 248 | 46,200 | ||||||
Align Technology Inc.(a) | 200 | 51,420 | ||||||
AngioDynamics Inc.(a) | 192 | 2,644 | ||||||
AtriCure Inc.(a) | 192 | 7,469 | ||||||
Atrion Corp. | 8 | 5,754 | ||||||
Avanos Medical Inc.(a) | 160 | 4,406 | ||||||
Avantor Inc.(a) | 599 | 11,064 | ||||||
Axogen Inc.(a) | 88 | 1,088 | ||||||
Baxter International Inc. | 1,504 | 134,187 | ||||||
Bio-Techne Corp. | 112 | 23,517 | ||||||
BioTelemetry Inc.(a) | 184 | 9,001 | ||||||
Boston Scientific Corp.(a) | 8,839 | 370,089 | ||||||
Bruker Corp. | 304 | 15,039 |
Security | Shares | Value | ||||||
Health Care - Products (continued) | ||||||||
Cantel Medical Corp. | 104 | $ | 6,766 | |||||
Cardiovascular Systems Inc.(a) | 168 | 7,625 | ||||||
CareDx Inc.(a) | 218 | 5,267 | ||||||
Cooper Companies Inc. (The) | 264 | 91,579 | ||||||
CryoLife Inc.(a) | 192 | 5,710 | ||||||
Cutera Inc.(a) | 56 | 1,578 | ||||||
Danaher Corp. | 2,678 | 430,810 | ||||||
Dentsply Sirona Inc. | 671 | 37,576 | ||||||
Edwards Lifesciences Corp.(a) | 1,341 | 294,832 | ||||||
Glaukos Corp.(a) | 112 | 6,300 | ||||||
Globus Medical Inc., Class A(a) | 472 | 24,676 | ||||||
Haemonetics Corp.(a) | 192 | 20,619 | ||||||
Henry Schein Inc.(a) | 634 | 43,708 | ||||||
Hill-Rom Holdings Inc. | 290 | 30,882 | ||||||
Hologic Inc.(a) | 1,241 | 66,418 | ||||||
ICU Medical Inc.(a) | 80 | 14,598 | ||||||
IDEXX Laboratories Inc.(a) | 328 | 88,891 | ||||||
Inogen Inc.(a) | 104 | 4,604 | ||||||
Inspire Medical Systems Inc.(a) | 98 | 7,330 | ||||||
Insulet Corp.(a) | 359 | 69,660 | ||||||
Integer Holdings Corp.(a) | 120 | 10,248 | ||||||
Integra LifeSciences Holdings Corp.(a) | 336 | 18,493 | ||||||
Intersect ENT Inc.(a) | 88 | 2,274 | ||||||
Intuitive Surgical Inc.(a) | 714 | 399,683 | ||||||
iRhythm Technologies Inc.(a) | 112 | 9,591 | ||||||
LeMaitre Vascular Inc. | 88 | 3,167 | ||||||
LivaNova PLC(a)(b) | 289 | 19,643 | ||||||
Luminex Corp. | 184 | 4,174 | ||||||
Masimo Corp.(a) | 296 | 50,498 | ||||||
Medtronic PLC | 8,263 | 953,881 | ||||||
Merit Medical Systems Inc.(a) | 272 | 9,906 | ||||||
Natus Medical Inc.(a) | 168 | 5,257 | ||||||
Nevro Corp.(a) | 128 | 17,012 | ||||||
Novocure Ltd.(a) | 200 | 16,292 | ||||||
NuVasive Inc.(a) | 288 | 22,211 | ||||||
OraSure Technologies Inc.(a) | 312 | 2,200 | ||||||
Orthofix Medical Inc.(a)(b) | 95 | 4,110 | ||||||
Patterson Companies Inc. | 322 | 7,087 | ||||||
Penumbra Inc.(a) | 168 | 29,477 | ||||||
Quidel Corp.(a) | 160 | 12,288 | ||||||
ResMed Inc. | 791 | 125,745 | ||||||
Shockwave Medical Inc.(a) | 121 | 5,254 | ||||||
STAAR Surgical Co.(a) | 215 | 7,233 | ||||||
Steris PLC | 199 | 29,987 | ||||||
Stryker Corp. | 2,026 | 426,878 | ||||||
Tactile Systems Technology Inc.(a) | 106 | 5,956 | ||||||
Tandem Diabetes Care Inc.(a)(b) | 199 | 15,132 | ||||||
Teleflex Inc. | 262 | 97,336 | ||||||
Thermo Fisher Scientific Inc. | 1,517 | 475,109 | ||||||
Varex Imaging Corp.(a) | 136 | 3,760 | ||||||
Varian Medical Systems Inc.(a) | 368 | 51,730 | ||||||
Wright Medical Group NV(a) | 464 | 13,985 | ||||||
Zimmer Biomet Holdings Inc. | 1,021 | 151,006 | ||||||
5,773,910 | ||||||||
Health Care - Services — 26.8% | ||||||||
Acadia Healthcare Co. Inc.(a) | 512 | 16,451 | ||||||
Addus HomeCare Corp.(a) | 66 | 6,226 | ||||||
Amedisys Inc.(a) | 217 | 38,298 | ||||||
Anthem Inc. | 1,237 | 328,151 | ||||||
Brookdale Senior Living Inc.(a) | 826 | 5,443 |
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® Evolved U.S. Healthcare Staples ETF |
January 31, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Health Care - Services (continued) | ||||||||
Centene Corp.(a) | 3,125 | $ | 196,281 | |||||
Charles River Laboratories International Inc.(a) | 72 | 11,130 | ||||||
Chemed Corp. | 57 | 26,621 | ||||||
Cigna Corp.(a) | 1,462 | 281,260 | ||||||
DaVita Inc.(a) | 552 | 44,088 | ||||||
Encompass Health Corp. | 653 | 50,301 | ||||||
Ensign Group Inc. (The) | 230 | 10,396 | ||||||
HCA Healthcare Inc. | 1,674 | 232,351 | ||||||
Humana Inc. | 773 | 259,914 | ||||||
Invitae Corp.(a)(b) | 393 | 7,329 | ||||||
IQVIA Holdings Inc.(a) | 480 | 74,520 | ||||||
Laboratory Corp. of America Holdings(a) | 510 | 89,454 | ||||||
LHC Group Inc.(a) | 169 | 24,632 | ||||||
Magellan Health Inc.(a) | 96 | 7,028 | ||||||
MEDNAX Inc.(a) | 538 | 12,412 | ||||||
Medpace Holdings Inc.(a) | 58 | 4,962 | ||||||
Molina Healthcare Inc.(a) | 142 | 17,462 | ||||||
Natera Inc.(a) | 345 | 12,078 | ||||||
National HealthCare Corp. | 64 | 5,371 | ||||||
Quest Diagnostics Inc. | 728 | 80,568 | ||||||
RadNet Inc.(a) | 233 | 5,259 | ||||||
Select Medical Holdings Corp.(a) | 704 | 16,079 | ||||||
Syneos Health Inc.(a) | 96 | 5,891 | ||||||
Teladoc Health Inc.(a) | 256 | 26,038 | ||||||
Tenet Healthcare Corp.(a) | 584 | 18,478 | ||||||
Tivity Health Inc.(a) | 287 | 6,212 | ||||||
U.S. Physical Therapy Inc. | 96 | 11,245 | ||||||
UnitedHealth Group Inc. | 5,021 | 1,367,972 | ||||||
Universal Health Services Inc., Class B | 449 | 61,562 | ||||||
3,361,463 | ||||||||
Household Products & Wares — 0.3% | ||||||||
Church & Dwight Co. Inc. | 454 | 33,696 | ||||||
Pharmaceuticals — 16.2% | ||||||||
AbbVie Inc. | 722 | 58,496 | ||||||
Akorn Inc.(a) | 200 | 306 | ||||||
Allergan PLC. | 669 | 124,862 | ||||||
AmerisourceBergen Corp. | 590 | 50,480 | ||||||
Bausch Health Companies Inc.(a)(b) | 144 | 3,950 | ||||||
Becton Dickinson and Co. | 1,544 | 424,878 | ||||||
Cardinal Health Inc. | 1,333 | 68,263 | ||||||
CVS Health Corp. | 5,765 | 390,982 | ||||||
DexCom Inc.(a) | 488 | 117,486 | ||||||
Johnson & Johnson | 3,298 | 490,973 | ||||||
McKesson Corp. | 672 | 95,834 | ||||||
Perrigo Co. PLC | 117 | 6,674 | ||||||
Pfizer Inc. | 3,849 | 143,337 | ||||||
PRA Health Sciences Inc.(a) | 112 | 11,347 | ||||||
Premier Inc., Class A(a) | 376 | 13,074 | ||||||
Zoetis Inc. | 170 | 22,816 | ||||||
2,023,758 |
Security | Shares | Value | ||||||
Real Estate Investment Trusts — 1.9% | ||||||||
Healthpeak Properties Inc. | 903 | $ | 32,499 | |||||
LTC Properties Inc. | 120 | 5,539 | ||||||
Medical Properties Trust Inc. | 1,848 | 40,933 | ||||||
National Health Investors Inc. | 160 | 13,501 | ||||||
Omega Healthcare Investors Inc. | 414 | 17,367 | ||||||
Physicians Realty Trust | 656 | 12,694 | ||||||
Sabra Health Care REIT Inc. | 640 | 13,760 | ||||||
Ventas Inc. | 766 | 44,321 | ||||||
Welltower Inc. | 719 | 61,050 | ||||||
241,664 | ||||||||
Retail — 0.7% | ||||||||
National Vision Holdings Inc.(a) | 153 | 5,220 | ||||||
Walgreens Boots Alliance Inc. | 1,714 | 87,157 | ||||||
92,377 | ||||||||
Software — 0.9% | ||||||||
Allscripts Healthcare Solutions Inc.(a) | 726 | 6,229 | ||||||
Cerner Corp. | 1,297 | 93,163 | ||||||
Omnicell Inc.(a) | 159 | 12,924 | ||||||
Tabula Rasa HealthCare Inc.(a)(b) | 80 | 4,646 | ||||||
116,962 | ||||||||
Total Common Stocks — 99.0% | ||||||||
(Cost: $11,079,152) | 12,398,981 | |||||||
Short-Term Investments | ||||||||
Money Market Funds — 1.1% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 1.78%(c)(d)(e) | 36,940 | 36,962 | ||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.50%(c)(d) | 99,000 | 99,000 | ||||||
135,962 | ||||||||
Total Short-Term Investments — 1.1% | ||||||||
(Cost: $135,956) | 135,962 | |||||||
Total Investments in Securities — 100.1% | ||||||||
(Cost: $11,215,108) | 12,534,943 | |||||||
Other Assets, Less Liabilities — (0.1)% | (14,270 | ) | ||||||
Net Assets — 100.0% | $ | 12,520,673 |
(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. |
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® Evolved U.S. Healthcare Staples ETF |
January 31, 2020 |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended January 31, 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 | 07/31/19 | Net Activity | 01/31/20 | 01/31/20 | Income | Gain (Loss) | (a) | (Depreciation) | ||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | 249,945 | (213,005 | ) | 36,940 | $ | 36,962 | $ | 450 | (b) | $ | 23 | $ | (1 | ) | ||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 50,000 | 49,000 | 99,000 | 99,000 | 424 | — | — | |||||||||||||||||||||
$ | 135,962 | $ | 874 | $ | 23 | $ | (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.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of January 31, 2020. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common Stocks | $ | 12,398,981 | $ | — | $ | — | $ | 12,398,981 | ||||||||
Money Market Funds | 135,962 | — | — | 135,962 | ||||||||||||
$ | 12,534,943 | $ | — | $ | — | $ | 12,534,943 |
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® Evolved U.S. Innovative Healthcare ETF |
January 31, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Biotechnology — 37.3% | ||||||||
Abeona Therapeutics Inc.(a) | 136 | $ | 295 | |||||
ACADIA Pharmaceuticals Inc.(a)(b) | 552 | 22,047 | ||||||
Acceleron Pharma Inc.(a) | 188 | 17,067 | ||||||
Achillion Pharmaceuticals Inc.(b)(c) | 624 | 287 | ||||||
Acorda Therapeutics Inc.(a)(b) | 204 | 414 | ||||||
Aduro Biotech Inc.(a) | 184 | 309 | ||||||
Adverum Biotechnologies Inc.(a) | 303 | 2,991 | ||||||
Agenus Inc.(a) | 348 | 1,302 | ||||||
Alder Biopharmaceuticals Inc.(c) | 312 | 275 | ||||||
Alexion Pharmaceuticals Inc.(a) | 938 | 93,228 | ||||||
Allakos Inc.(a) | 135 | 9,747 | ||||||
Allogene Therapeutics Inc.(a) | 190 | 4,127 | ||||||
Alnylam Pharmaceuticals Inc.(a) | 588 | 67,496 | ||||||
AMAG Pharmaceuticals Inc.(a) | 128 | 1,134 | ||||||
Amgen Inc. | 1,104 | 238,519 | ||||||
Amicus Therapeutics Inc.(a)(b) | 1,102 | 9,742 | ||||||
AnaptysBio Inc.(a) | 68 | 987 | ||||||
ANI Pharmaceuticals Inc.(a) | 28 | 1,736 | ||||||
Apellis Pharmaceuticals Inc.(a) | 246 | 10,113 | ||||||
Ardelyx Inc.(a) | 343 | 2,428 | ||||||
Arena Pharmaceuticals Inc.(a) | 256 | 11,697 | ||||||
Arrowhead Pharmaceuticals Inc.(a) | 526 | 22,045 | ||||||
Assembly Biosciences Inc.(a) | 88 | 1,545 | ||||||
Atara Biotherapeutics Inc.(a) | 128 | 1,693 | ||||||
Avrobio Inc.(a) | 121 | 2,629 | ||||||
BioCryst Pharmaceuticals Inc.(a) | 428 | 1,220 | ||||||
Biogen Inc.(a) | 788 | 211,854 | ||||||
Biohaven Pharmaceutical Holding Co. Ltd.(a) | 142 | 6,886 | ||||||
BioMarin Pharmaceutical Inc.(a) | 878 | 73,313 | ||||||
Bio-Rad Laboratories Inc., Class A(a) | 8 | 2,887 | ||||||
Bluebird Bio Inc.(a) | 191 | 15,221 | ||||||
Blueprint Medicines Corp.(a) | 225 | 14,276 | ||||||
Bridgebio Pharma Inc.(a)(b) | 105 | 3,621 | ||||||
Cara Therapeutics Inc.(a)(b) | 144 | 2,318 | ||||||
Celldex Therapeutics Inc.(a) | 44 | 102 | ||||||
ChemoCentryx Inc.(a) | 207 | 8,781 | ||||||
Constellation Pharmaceuticals Inc.(a) | 111 | 3,667 | ||||||
Cymabay Therapeutics Inc.(a) | 319 | 491 | ||||||
CytomX Therapeutics Inc.(a) | 156 | 1,158 | ||||||
Deciphera Pharmaceuticals Inc.(a) | 141 | 8,831 | ||||||
Denali Therapeutics Inc.(a) | 344 | 7,967 | ||||||
Dicerna Pharmaceuticals Inc.(a) | 274 | 5,410 | ||||||
Dynavax Technologies Corp.(a) | 256 | 1,293 | ||||||
Editas Medicine Inc.(a) | 192 | 5,075 | ||||||
Emergent BioSolutions Inc.(a) | 128 | 7,051 | ||||||
Epizyme Inc.(a) | 379 | 7,932 | ||||||
Esperion Therapeutics Inc.(a)(b) | 124 | 6,706 | ||||||
Exact Sciences Corp.(a)(b) | 202 | 18,843 | ||||||
Exelixis Inc.(a) | 1,288 | 22,154 | ||||||
Fate Therapeutics Inc.(a)(b) | 220 | 5,579 | ||||||
FibroGen Inc.(a) | 368 | 15,401 | ||||||
Five Prime Therapeutics Inc.(a) | 180 | 850 | ||||||
Forty Seven Inc.(a) | 138 | 5,088 | ||||||
Geron Corp.(a) | 492 | 645 | ||||||
Gilead Sciences Inc. | 3,689 | 233,145 | ||||||
GlycoMimetics Inc.(a)(b) | 185 | 792 | ||||||
Gossamer Bio Inc.(a)(b) | 256 | 3,400 | ||||||
Guardant Health Inc.(a) | 90 | 6,844 |
Security | Shares | Value | ||||||
Biotechnology (continued) | ||||||||
Halozyme Therapeutics Inc.(a) | 480 | $ | 9,110 | |||||
ImmunoGen Inc.(a) | 758 | 3,582 | ||||||
Immunomedics Inc.(a) | 804 | 14,930 | ||||||
Incyte Corp.(a) | 398 | 29,082 | ||||||
Innoviva Inc.(a) | 236 | 3,258 | ||||||
Insmed Inc.(a) | 360 | 7,394 | ||||||
Intercept Pharmaceuticals Inc.(a) | 135 | 12,475 | ||||||
Ionis Pharmaceuticals Inc.(a) | 619 | 36,100 | ||||||
Iovance Biotherapeutics Inc.(a)(b) | 508 | 11,044 | ||||||
Karuna Therapeutics Inc.(a) | 52 | 4,935 | ||||||
Karyopharm Therapeutics Inc.(a)(b) | 224 | 3,618 | ||||||
Krystal Biotech Inc.(a) | 54 | 2,822 | ||||||
Lexicon Pharmaceuticals Inc.(a)(b) | 212 | 655 | ||||||
Ligand Pharmaceuticals Inc.(a) | 96 | 8,430 | ||||||
MacroGenics Inc.(a) | 160 | 1,480 | ||||||
Mirati Therapeutics Inc.(a) | 155 | 13,459 | ||||||
Moderna Inc.(a)(b) | 1,013 | 20,777 | ||||||
Myriad Genetics Inc.(a) | 140 | 3,871 | ||||||
Nektar Therapeutics(a) | 781 | 15,534 | ||||||
NextCure Inc.(a) | 66 | 2,821 | ||||||
Novavax Inc.(a)(b) | 64 | 488 | ||||||
Omeros Corp.(a) | 188 | 2,399 | ||||||
Pieris Pharmaceuticals Inc.(a) | 256 | 947 | ||||||
PRECIGEN Inc.(a) | 176 | 818 | ||||||
Precision BioSciences Inc.(a) | 191 | 1,545 | ||||||
Prothena Corp. PLC(a) | 174 | 2,118 | ||||||
PTC Therapeutics Inc.(a) | 260 | 13,390 | ||||||
Puma Biotechnology Inc.(a) | 156 | 1,226 | ||||||
Radius Health Inc.(a)(b) | 200 | 3,512 | ||||||
Regeneron Pharmaceuticals Inc.(a) | 382 | 129,093 | ||||||
REGENXBIO Inc.(a) | 136 | 5,920 | ||||||
Retrophin Inc.(a) | 188 | 2,906 | ||||||
Rigel Pharmaceuticals Inc.(a) | 716 | 1,618 | ||||||
Rocket Pharmaceuticals Inc.(a)(b) | 105 | 2,150 | ||||||
Rubius Therapeutics Inc.(a) | 163 | 1,271 | ||||||
Sage Therapeutics Inc.(a)(b) | 292 | 19,354 | ||||||
Sangamo Therapeutics Inc.(a) | 632 | 4,633 | ||||||
Seattle Genetics Inc.(a) | 564 | 61,132 | ||||||
Solid Biosciences Inc.(a) | 65 | 218 | ||||||
Sorrento Therapeutics Inc.(a) | 276 | 1,057 | ||||||
Stemline Therapeutics Inc.(a) | 148 | 981 | ||||||
Theravance Biopharma Inc.(a)(b) | 194 | 5,409 | ||||||
Turning Point Therapeutics Inc.(a)(b) | 133 | 7,780 | ||||||
Ultragenyx Pharmaceutical Inc.(a) | 224 | 11,771 | ||||||
United Therapeutics Corp.(a) | 188 | 18,362 | ||||||
Vericel Corp.(a) | 95 | 1,558 | ||||||
Vertex Pharmaceuticals Inc.(a) | 1,181 | 268,146 | ||||||
Viking Therapeutics Inc.(a) | 258 | 1,620 | ||||||
WaVe Life Sciences Ltd.(a) | 84 | 596 | ||||||
Xencor Inc.(a)(b) | 240 | 8,146 | ||||||
Y-mAbs Therapeutics Inc.(a) | 116 | 3,827 | ||||||
ZIOPHARM Oncology Inc.(a) | 608 | 2,395 | ||||||
2,024,417 | ||||||||
Chemicals — 0.1% | ||||||||
Codexis Inc.(a)(b) | 181 | 2,838 | ||||||
Electrical Components & Equipment — 0.2% | ||||||||
Universal Display Corp. | 56 | 9,866 |
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® Evolved U.S. Innovative Healthcare ETF |
January 31, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Health Care - Products — 4.0% | ||||||||
Abbott Laboratories | 277 | $ | 24,138 | |||||
ABIOMED Inc.(a) | 18 | 3,353 | ||||||
Axogen Inc.(a) | 56 | 692 | ||||||
Baxter International Inc. | 464 | 41,398 | ||||||
Cooper Companies Inc. (The) | 64 | 22,201 | ||||||
Glaukos Corp.(a) | 104 | 5,850 | ||||||
Haemonetics Corp.(a) | 52 | 5,584 | ||||||
Hologic Inc.(a) | 144 | 7,707 | ||||||
ICU Medical Inc.(a)(b) | 20 | 3,649 | ||||||
IDEXX Laboratories Inc.(a) | 40 | 10,841 | ||||||
Insulet Corp.(a) | 59 | 11,448 | ||||||
Integra LifeSciences Holdings Corp.(a) | 68 | 3,743 | ||||||
Intersect ENT Inc.(a) | 72 | 1,861 | ||||||
Intuitive Surgical Inc.(a) | 22 | 12,315 | ||||||
Lantheus Holdings Inc.(a) | 112 | 1,961 | ||||||
Merit Medical Systems Inc.(a) | 52 | 1,894 | ||||||
Nevro Corp.(a) | 56 | 7,443 | ||||||
Novocure Ltd.(a) | 220 | 17,921 | ||||||
OPKO Health Inc.(a) | 916 | 1,328 | ||||||
Penumbra Inc.(a) | 21 | 3,685 | ||||||
Repligen Corp.(a) | 88 | 8,834 | ||||||
ResMed Inc. | 109 | 17,328 | ||||||
Wright Medical Group NV(a) | 122 | 3,677 | ||||||
218,851 | ||||||||
Health Care - Services — 1.3% | ||||||||
Catalent Inc.(a) | 208 | 12,709 | ||||||
Charles River Laboratories International Inc.(a) | 72 | 11,130 | ||||||
IQVIA Holdings Inc.(a) | 208 | 32,292 | ||||||
Medpace Holdings Inc.(a) | 39 | 3,336 | ||||||
Natera Inc.(a) | 76 | 2,661 | ||||||
Syneos Health Inc.(a) | 112 | 6,872 | ||||||
69,000 | ||||||||
Pharmaceuticals — 54.7% | ||||||||
AbbVie Inc. | 2,989 | 242,169 | ||||||
Aclaris Therapeutics Inc.(a) | 136 | 169 | ||||||
Adamas Pharmaceuticals Inc.(a) | 92 | 473 | ||||||
Aerie Pharmaceuticals Inc.(a) | 180 | 3,686 | ||||||
Agios Pharmaceuticals Inc.(a)(b) | 276 | 13,449 | ||||||
Aimmune Therapeutics Inc.(a) | 192 | 5,962 | ||||||
Akcea Therapeutics Inc.(a)(b) | 52 | 898 | ||||||
Akebia Therapeutics Inc.(a) | 384 | 2,772 | ||||||
Akorn Inc.(a) | 208 | 318 | ||||||
Alector Inc.(a)(b) | 139 | 3,884 | ||||||
Alkermes PLC(a) | 673 | 11,717 | ||||||
Allergan PLC. | 941 | 175,628 | ||||||
AmerisourceBergen Corp. | 56 | 4,791 | ||||||
Amneal Pharmaceuticals Inc.(a)(b) | 537 | 2,411 | ||||||
Amphastar Pharmaceuticals Inc.(a) | 132 | 2,496 | ||||||
Anika Therapeutics Inc.(a) | 40 | 1,644 | ||||||
Antares Pharma Inc.(a) | 592 | 2,173 | ||||||
Arvinas Holding Co. LLC(a) | 102 | 4,943 | ||||||
Athenex Inc.(a)(b) | 325 | 4,352 | ||||||
Axsome Therapeutics Inc.(a) | 90 | 7,814 | ||||||
Bausch Health Companies Inc.(a)(b) | 888 | 24,358 | ||||||
Bristol-Myers Squibb Co. | 4,831 | 304,111 | ||||||
Catalyst Pharmaceuticals Inc.(a) | 301 | 1,237 | ||||||
Clovis Oncology Inc.(a)(b) | 232 | 1,923 | ||||||
Coherus Biosciences Inc.(a) | 307 | 5,538 | ||||||
Collegium Pharmaceutical Inc.(a) | 108 | 2,172 |
Security | Shares | Value | ||||||
Pharmaceuticals (continued) | ||||||||
Concert Pharmaceuticals Inc.(a) | 96 | $ | 1,025 | |||||
Corbus Pharmaceuticals Holdings Inc.(a)(b) | 224 | 1,449 | ||||||
Corcept Therapeutics Inc.(a) | 440 | 5,575 | ||||||
Cyclerion Therapeutics Inc.(a)(b) | 60 | 197 | ||||||
Cytokinetics Inc.(a) | 216 | 2,657 | ||||||
Dermira Inc.(a) | 276 | 5,230 | ||||||
DexCom Inc.(a) | 118 | 28,408 | ||||||
Eagle Pharmaceuticals Inc./DE(a) | 56 | 3,014 | ||||||
Elanco Animal Health Inc.(a) | 709 | 21,908 | ||||||
Eli Lilly & Co.. | 2,073 | 289,474 | ||||||
Enanta Pharmaceuticals Inc.(a)(b) | 68 | 3,505 | ||||||
Endo International PLC(a) | 629 | 3,566 | ||||||
Flexion Therapeutics Inc.(a)(b) | 156 | 2,733 | ||||||
G1 Therapeutics Inc.(a) | 88 | 1,704 | ||||||
Global Blood Therapeutics Inc.(a)(b) | 301 | 19,643 | ||||||
Heron Therapeutics Inc.(a)(b) | 328 | 6,842 | ||||||
Horizon Therapeutics PLC(a) | 734 | 25,316 | ||||||
Intellia Therapeutics Inc.(a)(b) | 136 | 1,620 | ||||||
Intra-Cellular Therapies Inc.(a)(b) | 208 | 4,720 | ||||||
Ironwood Pharmaceuticals Inc.(a) | 600 | 7,248 | ||||||
Jazz Pharmaceuticals PLC(a) | 225 | 32,254 | ||||||
Johnson & Johnson | 3,588 | 534,146 | ||||||
Jounce Therapeutics Inc.(a) | 72 | 453 | ||||||
Kadmon Holdings Inc.(a) | 890 | 4,085 | ||||||
Kodiak Sciences Inc.(a) | 136 | 8,306 | ||||||
Kura Oncology Inc.(a) | 148 | 1,738 | ||||||
La Jolla Pharmaceutical Co.(a) | 92 | 630 | ||||||
Lannett Co. Inc.(a) | 116 | 944 | ||||||
Madrigal Pharmaceuticals Inc.(a) | 38 | 3,155 | ||||||
Mallinckrodt PLC(a) | 174 | 799 | ||||||
MediciNova Inc.(a)(b) | 164 | 950 | ||||||
Merck & Co. Inc. | 4,662 | 398,321 | ||||||
Momenta Pharmaceuticals Inc.(a)(b) | 545 | 15,816 | ||||||
Mylan NV(a) | 1,556 | 33,330 | ||||||
MyoKardia Inc.(a) | 206 | 14,014 | ||||||
Neurocrine Biosciences Inc.(a) | 480 | 48,038 | ||||||
Odonate Therapeutics Inc.(a) | 64 | 1,869 | ||||||
Pacira BioSciences Inc.(a)(b) | 152 | 6,569 | ||||||
Paratek Pharmaceuticals Inc.(a) | 124 | 417 | ||||||
Perrigo Co. PLC | 252 | 14,374 | ||||||
Pfizer Inc. | 8,475 | 315,609 | ||||||
Portola Pharmaceuticals Inc.(a) | 356 | 4,553 | ||||||
PRA Health Sciences Inc.(a) | 84 | 8,510 | ||||||
Prestige Consumer Healthcare Inc.(a)(b) | 64 | 2,596 | ||||||
Principia Biopharma Inc.(a) | 109 | 5,739 | ||||||
Progenics Pharmaceuticals Inc.(a) | 308 | 1,374 | ||||||
Ra Pharmaceuticals Inc.(a) | 169 | 7,921 | ||||||
Reata Pharmaceuticals Inc., Class A(a) | 125 | 27,349 | ||||||
Relmada Therapeutics Inc.(a)(b) | 64 | 2,838 | ||||||
Revance Therapeutics Inc.(a)(b) | 144 | 3,221 | ||||||
Rhythm Pharmaceuticals Inc.(a) | 174 | 3,052 | ||||||
Sarepta Therapeutics Inc.(a) | 334 | 38,731 | ||||||
Spectrum Pharmaceuticals Inc.(a) | 468 | 1,184 | ||||||
Supernus Pharmaceuticals Inc.(a) | 220 | 5,031 | ||||||
Synergy Pharmaceuticals Inc.(a)(b) | 1,136 | 7 | ||||||
TG Therapeutics Inc.(a) | 236 | 3,354 | ||||||
TherapeuticsMD Inc.(a)(b) | 640 | 1,440 | ||||||
Tricida Inc.(a)(b) | 128 | 4,513 | ||||||
UroGen Pharma Ltd.(a) | 65 | 1,912 | ||||||
Vanda Pharmaceuticals Inc.(a) | 224 | 2,856 |
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® Evolved U.S. Innovative Healthcare ETF |
January 31, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Pharmaceuticals (continued) | ||||||||
Voyager Therapeutics Inc.(a) | 128 | $ | 1,412 | |||||
Zoetis Inc. | 937 | 125,754 | ||||||
Zogenix Inc.(a) | 198 | 9,973 | ||||||
2,966,059 | ||||||||
Telecommunications — 0.0% | ||||||||
InterDigital Inc. | 36 | 1,989 | ||||||
Total Common Stocks — 97.6% | ||||||||
(Cost: $4,883,038) | 5,293,020 | |||||||
Rights | ||||||||
Pharmaceuticals — 0.2% | ||||||||
Bristol-Myers Squibb Co. (Expires 3/31/2021)(a) | 2,353 | 8,188 | ||||||
Total Rights — 0.2% | ||||||||
(Cost: $5,012) | 8,188 | |||||||
Short-Term Investments | ||||||||
Money Market Funds — 6.6% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 1.78%(d)(e)(f) | 249,735 | 249,885 |
Security | Shares | Value | ||||||
Money Market Funds (continued) | ||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.50%(d)(e) | 107,000 | $ | 107,000 | |||||
356,885 | ||||||||
Total Short-Term Investments — 6.6% | ||||||||
(Cost: $356,819) | 356,885 | |||||||
Total Investments in Securities — 104.4% | ||||||||
(Cost: $5,244,869) | 5,658,093 | |||||||
Other Assets, Less Liabilities — (4.4)% | (236,914 | ) | ||||||
Net Assets — 100.0% | $ | 5,421,179 |
(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) | 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 January 31, 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 | 07/31/19 | Net Activity | 01/31/20 | 01/31/20 | Income | Gain (Loss) | (a) | (Depreciation) | ||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | 187,167 | 62,568 | 249,735 | $ | 249,885 | $ | 1,086 | (b) | $ | (2 | ) | $ | 22 | |||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 73,000 | 34,000 | 107,000 | 107,000 | 571 | — | — | |||||||||||||||||||||
$ | 356,885 | $ | 1,657 | $ | (2 | ) | $ | 22 |
(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 January 31, 2020. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common Stocks | $ | 5,292,458 | $ | — | $ | 562 | $ | 5,293,020 | ||||||||
Rights | 8,188 | — | — | 8,188 | ||||||||||||
Money Market Funds | 356,885 | — | — | 356,885 | ||||||||||||
$ | 5,150,728 | $ | — | $ | 562 | $ | 5,658,093 |
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 |
Schedule of Investments (unaudited) | iShares® Evolved U.S. Media and Entertainment ETF |
January 31, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Advertising — 0.2% | ||||||||
Clear Channel Outdoor Holdings Inc.(a) | 2,194 | $ | 5,990 | |||||
National CineMedia Inc. | 1,205 | 8,893 | ||||||
14,883 | ||||||||
Commercial Services — 1.6% | ||||||||
Graham Holdings Co., Class B. | 60 | 32,953 | ||||||
Nielsen Holdings PLC | 3,520 | 71,808 | ||||||
Viad Corp. | 80 | 5,200 | ||||||
109,961 | ||||||||
Entertainment — 5.5% | ||||||||
AMC Entertainment Holdings Inc., Class A(b) | 550 | 3,586 | ||||||
Churchill Downs Inc. | 154 | 22,234 | ||||||
Cinemark Holdings Inc. | 1,555 | 48,998 | ||||||
Eldorado Resorts Inc.(a) | 90 | 5,380 | ||||||
IMAX Corp.(a) | 960 | 15,878 | ||||||
Lions Gate Entertainment Corp., Class A(a) | 1,595 | 15,838 | ||||||
Lions Gate Entertainment Corp., Class B, NVS(a) | 3,209 | 29,940 | ||||||
Live Nation Entertainment Inc.(a) | 1,260 | 85,882 | ||||||
Madison Square Garden Co. (The), Class A(a) | 240 | 71,086 | ||||||
Penn National Gaming Inc.(a) | 160 | 4,773 | ||||||
Reading International Inc., Class A, NVS(a) | 225 | 2,295 | ||||||
Scientific Games Corp./DE, Class A(a) | 405 | 10,060 | ||||||
SeaWorld Entertainment Inc.(a) | 595 | 20,504 | ||||||
Six Flags Entertainment Corp. | 935 | 35,652 | ||||||
372,106 | ||||||||
Home Furnishings — 0.7% | ||||||||
Dolby Laboratories Inc., Class A | 705 | 48,885 | ||||||
Internet — 14.4% | ||||||||
Alphabet Inc., Class A(a) | 49 | 70,206 | ||||||
Alphabet Inc., Class C, NVS(a) | 53 | 76,014 | ||||||
IAC/InterActiveCorp.(a) | 650 | 158,334 | ||||||
Netflix Inc.(a) | 1,028 | 354,753 | ||||||
Roku Inc.(a) | 1,136 | 137,399 | ||||||
Twitter Inc.(a) | 5,201 | 168,928 | ||||||
965,634 | ||||||||
Leisure Time — 0.2% | ||||||||
Carnival Corp. | 236 | 10,273 | ||||||
Liberty TripAdvisor Holdings Inc., Class A(a) | 436 | 2,568 | ||||||
12,841 | ||||||||
Lodging — 0.3% | ||||||||
Las Vegas Sands Corp. | 245 | 16,001 | ||||||
Marcus Corp. (The) | 150 | 4,372 | ||||||
20,373 | ||||||||
Media — 60.0% | ||||||||
Altice USA Inc., Class A(a) | 3,969 | 108,592 | ||||||
AMC Networks Inc., Class A(a) | 1,080 | 39,517 | ||||||
Cable One Inc. | 60 | 102,242 | ||||||
Central European Media Enterprises Ltd., Class A(a) | 1,111 | 4,966 | ||||||
Charter Communications Inc., Class A(a)(b) | 666 | 344,628 | ||||||
Comcast Corp., Class A | 9,853 | 425,551 | ||||||
Discovery Inc., Class A(a) | 3,440 | 100,654 | ||||||
Discovery Inc., Class C, NVS(a) | 8,118 | 225,437 | ||||||
DISH Network Corp., Class A(a) | 3,888 | 142,923 | ||||||
Entercom Communications Corp., Class A | 3,310 | 13,141 | ||||||
Entravision Communications Corp., Class A | 758 | 1,683 | ||||||
EW Scripps Co. (The), Class A, NVS | 1,720 | 20,881 | ||||||
Fox Corp., Class A, NVS | 8,491 | 314,846 |
Security | Shares | Value | ||||||
Media (continued) | ||||||||
Fox Corp., Class B(a) | 4,614 | $ | 167,627 | |||||
Gannett Co. Inc. | 1,265 | 7,729 | ||||||
Gray Television Inc.(a) | 2,468 | 50,051 | ||||||
Hemisphere Media Group Inc.(a) | 515 | 6,922 | ||||||
Iheartmedia Inc., Class A(a) | 581 | 10,272 | ||||||
John Wiley & Sons Inc., Class A | 254 | 11,079 | ||||||
Liberty Broadband Corp., Class A(a) | 360 | 47,372 | ||||||
Liberty Broadband Corp., Class C, NVS(a) | 1,999 | 265,727 | ||||||
Liberty Global PLC, Class A(a) | 1,555 | 31,909 | ||||||
Liberty Global PLC, Class C, NVS(a) | 4,720 | 91,946 | ||||||
Liberty Latin America Ltd., Class A(a) | 193 | 3,219 | ||||||
Liberty Latin America Ltd., Class C, NVS(a) | 913 | 15,384 | ||||||
Liberty Media Corp.-Liberty SiriusXM, Class A(a) | 470 | 22,828 | ||||||
Liberty Media Corp.-Liberty SiriusXM, Class C, NVS(a) | 479 | 23,481 | ||||||
Meredith Corp. | 950 | 28,547 | ||||||
MSG Networks Inc., Class A(a) | 1,315 | 20,001 | ||||||
New York Times Co. (The), Class A | 2,360 | 75,544 | ||||||
News Corp., Class A, NVS. | 6,919 | 94,237 | ||||||
News Corp., Class B | 2,160 | 30,175 | ||||||
Nexstar Media Group Inc., Class A | 1,280 | 155,072 | ||||||
Saga Communications Inc., Class A | 135 | 4,093 | ||||||
Scholastic Corp., NVS. | 270 | 8,897 | ||||||
Sinclair Broadcast Group Inc., Class A | 1,814 | 54,275 | ||||||
Sirius XM Holdings Inc.(b) | 18,861 | 133,347 | ||||||
TEGNA Inc. | 5,718 | 96,634 | ||||||
ViacomCBS Inc., Class A | 164 | 6,229 | ||||||
ViacomCBS Inc., Class B, NVS | 7,999 | 273,006 | ||||||
Walt Disney Co. (The) | 2,871 | 397,088 | ||||||
World Wrestling Entertainment Inc., Class A | 1,139 | 55,674 | ||||||
4,033,426 | ||||||||
Real Estate Investment Trusts — 0.9% | ||||||||
Lamar Advertising Co., Class A | 575 | 53,366 | ||||||
Ryman Hospitality Properties Inc. | 105 | 8,928 | ||||||
62,294 | ||||||||
Retail — 0.7% | ||||||||
Qurate Retail Inc. Series A(a) | 5,048 | 43,059 | ||||||
Software — 10.7% | ||||||||
Activision Blizzard Inc. | 5,214 | 304,915 | ||||||
Daily Journal Corp.(a) | 10 | 2,750 | ||||||
Electronic Arts Inc.(a) | 2,220 | 239,582 | ||||||
Glu Mobile Inc.(a) | 1,005 | 5,929 | ||||||
Take-Two Interactive Software Inc.(a) | 1,023 | 127,507 | ||||||
TiVo Corp. | 1,635 | 11,903 | ||||||
Zynga Inc., Class A(a) | 4,335 | 26,097 | ||||||
718,683 | ||||||||
Telecommunications — 1.1% | ||||||||
AT&T Inc. | 984 | 37,018 | ||||||
GCI Liberty Inc., Class A(a) | 309 | 22,613 | ||||||
Harmonic Inc.(a) | 580 | 4,080 | ||||||
Shenandoah Telecommunications Co. | 271 | 10,935 | ||||||
74,646 | ||||||||
Toys, Games & Hobbies — 3.0% | ||||||||
Hasbro Inc. | 1,640 | 167,067 | ||||||
Mattel Inc.(a)(b) | 2,286 | 33,444 | ||||||
200,511 | ||||||||
Total Common Stocks — 99.3% | ||||||||
(Cost: $6,475,851) | 6,677,302 |
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® Evolved U.S. Media and Entertainment ETF |
January 31, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Short-Term Investments | ||||||||
Money Market Funds — 3.3% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 1.78%(c)(d)(e) | 178,807 | $ | 178,914 | |||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.50%(c)(d) | 45,000 | 45,000 | ||||||
223,914 | ||||||||
Total Short-Term Investments — 3.3% | ||||||||
(Cost: $223,878) | 223,914 | |||||||
Total Investments in Securities — 102.6% | ||||||||
(Cost: $6,699,729) | 6,901,216 | |||||||
Other Assets, Less Liabilities — (2.6)% | (177,366 | ) | ||||||
Net Assets — 100.0% | $ | 6,723,850 |
(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 January 31, 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 | 07/31/19 | Net Activity | 01/31/20 | 01/31/20 | Income | Gain (Loss) | (a) | (Depreciation) | ||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | 87,096 | 91,711 | 178,807 | $ | 178,914 | $ | 856 | (b) | $ | 4 | $ | 27 | ||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 51,000 | (6,000 | ) | 45,000 | 45,000 | 572 | — | — | ||||||||||||||||||||
$ | 223,914 | $ | 1,428 | $ | 4 | $ | 27 |
(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 January 31, 2020. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common Stocks | $ | 6,677,302 | $ | — | $ | — | $ | 6,677,302 | ||||||||
Money Market Funds | 223,914 | — | — | 223,914 | ||||||||||||
$ | 6,901,216 | $ | — | $ | — | $ | 6,901,216 |
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® Evolved U.S. Technology ETF |
January 31, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Advertising — 0.3% | ||||||||
Interpublic Group of Companies Inc. (The) | 821 | $ | 18,637 | |||||
Omnicom Group Inc. | 406 | 30,576 | ||||||
Trade Desk Inc. (The), Class A(a)(b) | 115 | 30,955 | ||||||
80,168 | ||||||||
Aerospace & Defense — 0.1% | ||||||||
L3Harris Technologies Inc. | 79 | 17,485 | ||||||
Raytheon Co. | 84 | 18,559 | ||||||
36,044 | ||||||||
Banks — 0.3% | ||||||||
JPMorgan Chase & Co. | 560 | 74,122 | ||||||
Biotechnology — 0.1% | ||||||||
Incyte Corp.(a) | 179 | 13,080 | ||||||
Commercial Services — 4.7% | ||||||||
2U Inc.(a)(b) | 98 | 1,941 | ||||||
Automatic Data Processing Inc. | 879 | 150,652 | ||||||
Avalara Inc.(a) | 183 | 15,581 | ||||||
Booz Allen Hamilton Holding Corp. | 186 | 14,515 | ||||||
Chegg Inc.(a) | 375 | 15,461 | ||||||
CoreLogic Inc. | 126 | 5,859 | ||||||
CoStar Group Inc.(a) | 56 | 36,567 | ||||||
Equifax Inc. | 196 | 29,380 | ||||||
Euronet Worldwide Inc.(a) | 70 | 11,035 | ||||||
FleetCor Technologies Inc.(a) | 140 | 44,132 | ||||||
Gartner Inc.(a) | 224 | 36,015 | ||||||
Global Payments Inc. | 459 | 89,712 | ||||||
IHS Markit Ltd.(a) | 631 | 49,761 | ||||||
Korn Ferry | 112 | 4,590 | ||||||
ManpowerGroup Inc. | 98 | 8,966 | ||||||
MarketAxess Holdings Inc. | 42 | 14,876 | ||||||
Moody’s Corp. | 182 | 46,736 | ||||||
Nielsen Holdings PLC | 474 | 9,670 | ||||||
Paylocity Holding Corp.(a) | 135 | 19,155 | ||||||
PayPal Holdings Inc.(a) | 2,254 | 256,708 | ||||||
Robert Half International Inc. | 154 | 8,958 | ||||||
S&P Global Inc. | 336 | 98,693 | ||||||
Sabre Corp. | 434 | 9,348 | ||||||
Square Inc., Class A(a) | 755 | 56,391 | ||||||
TransUnion | 336 | 30,811 | ||||||
Verisk Analytics Inc. | 210 | 34,119 | ||||||
WEX Inc.(a) | 56 | 12,147 | ||||||
1,111,779 | ||||||||
Computers — 15.8% | ||||||||
Accenture PLC, Class A | 1,459 | 299,401 | ||||||
Apple Inc. | 8,299 | 2,568,624 | ||||||
CACI International Inc., Class A(a) | 42 | 11,233 | ||||||
Cognizant Technology Solutions Corp., Class A | 1,400 | 85,932 | ||||||
Conduent Inc.(a) | 350 | 1,498 | ||||||
Dell Technologies Inc., Class C(a) | 560 | 27,311 | ||||||
DXC Technology Co. | 784 | 24,994 | ||||||
EPAM Systems Inc.(a) | 112 | 25,552 | ||||||
Fortinet Inc.(a) | 448 | 51,681 | ||||||
Genpact Ltd. | 322 | 14,255 | ||||||
Hewlett Packard Enterprise Co. | 3,530 | 49,173 | ||||||
HP Inc. | 2,478 | 52,831 | ||||||
International Business Machines Corp. | 2,665 | 383,040 | ||||||
Lumentum Holdings Inc.(a) | 84 | 6,365 |
Security | Shares | Value | ||||||
Computers (continued) | ||||||||
NCR Corp.(a) | 224 | $ | 7,553 | |||||
NetApp Inc. | 758 | 40,477 | ||||||
Pure Storage Inc., Class A(a) | 308 | 5,482 | ||||||
Qualys Inc.(a)(b) | 112 | 9,603 | ||||||
Rapid7 Inc.(a) | 186 | 11,045 | ||||||
Seagate Technology PLC | 504 | 28,723 | ||||||
Western Digital Corp. | 672 | 44,016 | ||||||
Zscaler Inc.(a)(b) | 267 | 14,976 | ||||||
3,763,765 | ||||||||
Distribution & Wholesale — 0.1% | ||||||||
Copart Inc.(a) | 168 | 17,045 | ||||||
KAR Auction Services Inc. | 126 | 2,649 | ||||||
19,694 | ||||||||
Diversified Financial Services — 6.5% | ||||||||
Alliance Data Systems Corp. | 70 | 7,195 | ||||||
Cboe Global Markets Inc. | 140 | 17,251 | ||||||
CME Group Inc. | 476 | 103,344 | ||||||
Discover Financial Services | 112 | 8,415 | ||||||
Interactive Brokers Group Inc., Class A | 84 | 3,948 | ||||||
Intercontinental Exchange Inc. | 812 | 80,989 | ||||||
Invesco Ltd. | 310 | 5,363 | ||||||
Mastercard Inc., Class A | 1,746 | 551,631 | ||||||
Nasdaq Inc. | 154 | 17,935 | ||||||
SEI Investments Co. | 168 | 10,964 | ||||||
TD Ameritrade Holding Corp. | 294 | 13,959 | ||||||
Visa Inc., Class A | 3,580 | 712,313 | ||||||
Western Union Co. (The) | 546 | 14,687 | ||||||
1,547,994 | ||||||||
Electronics — 0.7% | ||||||||
Agilent Technologies Inc. | 222 | 18,328 | ||||||
Allegion PLC | 89 | 11,509 | ||||||
Arrow Electronics Inc.(a) | 112 | 8,505 | ||||||
Avnet Inc. | 210 | 7,663 | ||||||
Coherent Inc.(a) | 28 | 3,960 | ||||||
Flex Ltd.(a) | 886 | 11,651 | ||||||
Garmin Ltd. | 127 | 12,313 | ||||||
Jabil Inc. | 210 | 8,167 | ||||||
Keysight Technologies Inc.(a) | 294 | 27,339 | ||||||
National Instruments Corp. | 266 | 11,872 | ||||||
Roper Technologies Inc. | 41 | 15,648 | ||||||
SYNNEX Corp. | 56 | 7,715 | ||||||
Tech Data Corp.(a) | 84 | 12,091 | ||||||
Trimble Inc.(a) | 364 | 15,477 | ||||||
172,238 | ||||||||
Health Care - Products — 0.1% | ||||||||
Align Technology Inc.(a) | 103 | 26,481 | ||||||
Health Care - Services — 0.2% | ||||||||
IQVIA Holdings Inc.(a) | 154 | 23,909 | ||||||
Teladoc Health Inc.(a) | 131 | 13,324 | ||||||
37,233 | ||||||||
Insurance — 0.5% | ||||||||
Aon PLC | 237 | 52,199 | ||||||
Marsh & McLennan Companies Inc. | 378 | 42,283 | ||||||
Willis Towers Watson PLC | 130 | 27,468 | ||||||
121,950 | ||||||||
Internet — 25.2% | ||||||||
Alphabet Inc., Class A(a) | 743 | 1,064,555 | ||||||
Alphabet Inc., Class C, NVS(a) | 746 | 1,069,936 |
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® Evolved U.S. Technology ETF |
January 31, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Internet (continued) | ||||||||
Amazon.com Inc.(a) | 787 | $ | 1,580,863 | |||||
Anaplan Inc.(a) | 373 | 21,481 | ||||||
Booking Holdings Inc.(a) | 60 | 109,833 | ||||||
CDW Corp./DE | 308 | 40,179 | ||||||
eBay Inc. | 1,829 | 61,381 | ||||||
Etsy Inc.(a) | 139 | 6,785 | ||||||
Expedia Group Inc. | 182 | 19,738 | ||||||
F5 Networks Inc.(a) | 182 | 22,226 | ||||||
Facebook Inc., Class A(a) | 6,219 | 1,255,678 | ||||||
FireEye Inc.(a) | 434 | 6,935 | ||||||
GoDaddy Inc., Class A(a) | 322 | 21,642 | ||||||
Grubhub Inc.(a) | 126 | 6,823 | ||||||
IAC/InterActiveCorp.(a) | 126 | 30,692 | ||||||
Match Group Inc.(a) | 154 | 12,046 | ||||||
MercadoLibre Inc.(a) | 84 | 55,692 | ||||||
Netflix Inc.(a) | 421 | 145,283 | ||||||
NortonLifeLock Inc. | 1,384 | 39,333 | ||||||
Okta Inc.(a) | 391 | 50,068 | ||||||
Palo Alto Networks Inc.(a) | 280 | 65,738 | ||||||
Pinterest Inc., Class A(a) | 297 | 6,543 | ||||||
Proofpoint Inc.(a) | 154 | 18,913 | ||||||
Q2 Holdings Inc.(a) | 138 | 12,032 | ||||||
Roku Inc.(a) | 211 | 25,520 | ||||||
Snap Inc., Class A, NVS(a) | 2,384 | 43,818 | ||||||
Twitter Inc.(a) | 1,611 | 52,325 | ||||||
Uber Technologies Inc.(a) | 2,503 | 90,834 | ||||||
VeriSign Inc.(a) | 248 | 51,619 | ||||||
Zendesk Inc.(a) | 238 | 20,563 | ||||||
Zillow Group Inc., Class C, NVS(a) | 196 | 9,057 | ||||||
6,018,131 | ||||||||
Machinery — 0.1% | ||||||||
Cognex Corp. | 280 | 14,272 | ||||||
Rockwell Automation Inc. | 56 | 10,733 | ||||||
25,005 | ||||||||
Media — 0.1% | ||||||||
FactSet Research Systems Inc. | 70 | 20,028 | ||||||
Office & Business Equipment — 0.2% | ||||||||
Xerox Holdings Corp.(a) | 362 | 12,877 | ||||||
Zebra Technologies Corp., Class A(a) | 112 | 26,770 | ||||||
39,647 | ||||||||
Private Equity — 0.2% | ||||||||
Blackstone Group Inc. (The), Class A | 616 | 37,619 | ||||||
Real Estate — 0.1% | ||||||||
CBRE Group Inc., Class A(a) | 289 | 17,643 | ||||||
Jones Lang LaSalle Inc. | 56 | 9,510 | ||||||
27,153 | ||||||||
Real Estate Investment Trusts — 0.3% | ||||||||
Digital Realty Trust Inc. | 263 | 32,346 | ||||||
Equinix Inc. | 66 | 38,922 | ||||||
Iron Mountain Inc. | 378 | 11,949 | ||||||
83,217 | ||||||||
Retail — 0.1% | ||||||||
Best Buy Co. Inc. | 196 | 16,599 | ||||||
Semiconductors — 9.2% | ||||||||
Advanced Micro Devices Inc.(a) | 2,676 | 125,772 | ||||||
Analog Devices Inc. | 518 | 56,851 | ||||||
Applied Materials Inc. | 1,260 | 73,068 |
Security | Shares | Value | ||||||
Semiconductors (continued) | ||||||||
Broadcom Inc. | 725 | $ | 221,241 | |||||
Cypress Semiconductor Corp. | 755 | 17,614 | ||||||
Inphi Corp.(a) | 135 | 10,255 | ||||||
Intel Corp. | 6,543 | 418,294 | ||||||
KLA Corp. | 255 | 42,264 | ||||||
Lam Research Corp. | 211 | 62,922 | ||||||
Marvell Technology Group Ltd. | 1,833 | 44,065 | ||||||
Maxim Integrated Products Inc. | 574 | 34,509 | ||||||
Microchip Technology Inc. | 448 | 43,671 | ||||||
Micron Technology Inc.(a) | 2,223 | 118,019 | ||||||
Monolithic Power Systems Inc. | 84 | 14,378 | ||||||
NVIDIA Corp. | 1,725 | 407,842 | ||||||
ON Semiconductor Corp.(a) | 755 | 17,478 | ||||||
Qorvo Inc.(a) | 213 | 22,548 | ||||||
QUALCOMM Inc. | 2,035 | 173,606 | ||||||
Silicon Laboratories Inc.(a) | 98 | 9,634 | ||||||
Skyworks Solutions Inc. | 336 | 38,018 | ||||||
Teradyne Inc. | 359 | 23,691 | ||||||
Texas Instruments Inc. | 1,511 | 182,302 | ||||||
Xilinx Inc. | 588 | 49,674 | ||||||
2,207,716 | ||||||||
Software — 31.5% | ||||||||
ACI Worldwide Inc.(a) | 280 | 9,646 | ||||||
Activision Blizzard Inc. | 994 | 58,129 | ||||||
Adobe Inc.(a) | 1,347 | 472,986 | ||||||
Akamai Technologies Inc.(a) | 420 | 39,207 | ||||||
Alteryx Inc., Class A(a)(b) | 211 | 29,428 | ||||||
ANSYS Inc.(a) | 196 | 53,769 | ||||||
Aspen Technology Inc.(a) | 140 | 16,657 | ||||||
Autodesk Inc.(a) | 585 | 115,157 | ||||||
Black Knight Inc.(a) | 196 | 13,116 | ||||||
Blackbaud Inc. | 126 | 9,870 | ||||||
Box Inc., Class A(a) | 378 | 5,681 | ||||||
Broadridge Financial Solutions Inc. | 196 | 23,353 | ||||||
Cadence Design Systems Inc.(a) | 686 | 49,468 | ||||||
CDK Global Inc. | 266 | 14,279 | ||||||
Ceridian HCM Holding Inc.(a)(b) | 391 | 28,656 | ||||||
Cerner Corp. | 406 | 29,163 | ||||||
Citrix Systems Inc. | 392 | 47,518 | ||||||
Cloudera Inc.(a)(b) | 322 | 3,313 | ||||||
CommVault Systems Inc.(a) | 126 | 5,673 | ||||||
Cornerstone OnDemand Inc.(a) | 168 | 9,878 | ||||||
Coupa Software Inc.(a) | 224 | 36,098 | ||||||
DocuSign Inc.(a) | 570 | 44,751 | ||||||
Dropbox Inc., Class A(a) | 837 | 14,246 | ||||||
Elastic NV(a) | 182 | 11,808 | ||||||
Electronic Arts Inc.(a) | 518 | 55,903 | ||||||
Everbridge Inc.(a) | 127 | 11,511 | ||||||
Fair Isaac Corp.(a) | 70 | 28,167 | ||||||
Fidelity National Information Services Inc. | 1,024 | 147,108 | ||||||
Fiserv Inc.(a) | 1,245 | 147,669 | ||||||
Five9 Inc.(a) | 208 | 14,920 | ||||||
Guidewire Software Inc.(a) | 182 | 20,475 | ||||||
HubSpot Inc.(a) | 98 | 17,732 | ||||||
Intuit Inc. | 560 | 157,013 | ||||||
j2 Global Inc. | 98 | 9,394 | ||||||
Jack Henry & Associates Inc. | 168 | 25,123 | ||||||
LiveRamp Holdings Inc.(a) | 52 | 2,093 | ||||||
Manhattan Associates Inc.(a) | 182 | 15,554 | ||||||
Microsoft Corp. | 22,733 | 3,869,839 |
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® Evolved U.S. Technology ETF |
January 31, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Software (continued) | ||||||||
MongoDB Inc.(a) | 138 | $ | 22,620 | |||||
MSCI Inc. | 168 | 48,014 | ||||||
New Relic Inc.(a) | 126 | 8,317 | ||||||
Nuance Communications Inc.(a) | 594 | 11,239 | ||||||
Nutanix Inc., Class A(a) | 628 | 20,391 | ||||||
Oracle Corp. | 7,143 | 374,650 | ||||||
Paychex Inc. | 642 | 55,064 | ||||||
Paycom Software Inc.(a) | 126 | 40,088 | ||||||
Pegasystems Inc. | 112 | 9,656 | ||||||
Progress Software Corp. | 154 | 6,950 | ||||||
PROS Holdings Inc.(a) | 157 | 9,420 | ||||||
PTC Inc.(a) | 336 | 27,928 | ||||||
RealPage Inc.(a) | 126 | 7,352 | ||||||
RingCentral Inc., Class A(a) | 154 | 31,659 | ||||||
salesforce.com Inc.(a) | 2,595 | 473,094 | ||||||
ServiceNow Inc.(a) | 592 | 200,232 | ||||||
Slack Technologies Inc., Class A(a) | 712 | 14,760 | ||||||
Smartsheet Inc., Class A(a) | 424 | 20,556 | ||||||
Splunk Inc.(a) | 523 | 81,201 | ||||||
SS&C Technologies Holdings Inc. | 364 | 22,936 | ||||||
Synopsys Inc.(a) | 392 | 57,824 | ||||||
Take-Two Interactive Software Inc.(a) | 169 | 21,064 | ||||||
Teradata Corp.(a) | 336 | 8,178 | ||||||
Twilio Inc., Class A(a)(b) | 389 | 48,368 | ||||||
Tyler Technologies Inc.(a) | 84 | 27,189 | ||||||
Veeva Systems Inc., Class A(a) | 308 | 45,156 | ||||||
Verint Systems Inc.(a) | 168 | 9,744 | ||||||
VMware Inc., Class A(a) | 224 | 33,165 | ||||||
Workday Inc., Class A(a) | 534 | 98,592 | ||||||
Zoom Video Communications Inc., Class A(a)(b) | 180 | 13,734 | ||||||
Zynga Inc., Class A(a) | 1,526 | 9,187 | ||||||
7,522,679 | ||||||||
Telecommunications — 2.9% | ||||||||
Arista Networks Inc.(a) | 168 | 37,521 | ||||||
Ciena Corp.(a) | 336 | 13,665 | ||||||
Cisco Systems Inc. | 12,097 | 556,099 |
Security | Shares | Value | ||||||
Telecommunications (continued) | ||||||||
CommScope Holding Co. Inc.(a) | 224 | $ | 2,729 | |||||
Juniper Networks Inc. | 994 | 22,802 | ||||||
LogMeIn Inc. | 140 | 12,036 | ||||||
Motorola Solutions Inc. | 224 | 39,648 | ||||||
Zayo Group Holdings Inc.(a) | 238 | 8,271 | ||||||
692,771 | ||||||||
Transportation — 0.1% | ||||||||
Expeditors International of Washington Inc. | 182 | 13,293 | ||||||
FedEx Corp. | 130 | 18,803 | ||||||
32,096 | ||||||||
Total Common Stocks — 99.4% | ||||||||
(Cost: $20,026,152). | 23,727,209 | |||||||
Short-Term Investments | ||||||||
Money Market Funds — 1.1% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 1.78%(c)(d)(e) | 130,098 | 130,176 | ||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.50%(c)(d) | 138,000 | 138,000 | ||||||
268,176 | ||||||||
Total Short-Term Investments — 1.1% | ||||||||
(Cost: $268,146) | 268,176 | |||||||
Total Investments in Securities — 100.5% | ||||||||
(Cost: $20,294,298) | 23,995,385 | |||||||
Other Assets, Less Liabilities — (0.5)% | (128,624 | ) | ||||||
Net Assets — 100.0% | $ | 23,866,761 |
(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 January 31, 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 | 07/31/19 | Net Activity | 01/31/20 | 01/31/20 | Income | Gain (Loss) | (a) | (Depreciation) | ||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | 149,562 | (19,464 | ) | 130,098 | $ | 130,176 | $ | 768 | (b) | $ | (132 | ) | $ | 22 | ||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 188,000 | (50,000 | ) | 138,000 | 138,000 | 1,089 | — | — | ||||||||||||||||||||
$ | 268,176 | $ | 1,857 | $ | (132 | ) | $ | 22 |
(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.
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® Evolved U.S. Technology ETF |
January 31, 2020 |
Fair Value Measurements (continued)
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of January 31, 2020. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common Stocks | $ | 23,727,209 | $ | — | $ | — | $ | 23,727,209 | ||||||||
Money Market Funds | 268,176 | — | — | 268,176 | ||||||||||||
$ | 23,995,385 | $ | — | $ | — | $ | 23,995,385 |
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 | 33 |
Statements of Assets and Liabilities (unaudited)
January 31, 2020
iShares Evolved U.S. Consumer Staples ETF | iShares Evolved U.S. Discretionary Spending ETF | iShares Evolved U.S. Financials ETF | iShares Evolved U.S. Healthcare Staples ETF | |||||||||||||
ASSETS | ||||||||||||||||
Investments in securities, at value (including securities on loan)(a): | ||||||||||||||||
Unaffiliated(b) | $ | 8,575,966 | $ | 12,317,838 | $ | 5,100,544 | $ | 12,398,981 | ||||||||
Affiliated(c) | 106,582 | 273,258 | 50,184 | 135,962 | ||||||||||||
Cash | 494 | 144 | 781 | 756 | ||||||||||||
Receivables: | ||||||||||||||||
Securities lending income — Affiliated | 23 | 53 | 3 | 34 | ||||||||||||
Capital shares sold | — | — | — | 15,583 | ||||||||||||
Dividends | 9,937 | 6,591 | 5,080 | 7,947 | ||||||||||||
Total assets | 8,693,002 | 12,597,884 | 5,156,592 | 12,559,263 | ||||||||||||
LIABILITIES | ||||||||||||||||
Collateral on securities loaned, at value | 39,582 | 167,220 | 6,183 | 36,933 | ||||||||||||
Payables: | ||||||||||||||||
Investment advisory fees | 1,320 | 1,993 | 807 | 1,657 | ||||||||||||
Total liabilities | 40,902 | 169,213 | 6,990 | 38,590 | ||||||||||||
NET ASSETS | $ | 8,652,100 | $ | 12,428,671 | $ | 5,149,602 | $ | 12,520,673 | ||||||||
NET ASSETS CONSIST OF: | ||||||||||||||||
Paid-in capital | $ | 7,864,236 | $ | 10,998,286 | $ | 4,938,160 | $ | 11,202,004 | ||||||||
Accumulated earnings | 787,864 | 1,430,385 | 211,442 | 1,318,669 | ||||||||||||
NET ASSETS | $ | 8,652,100 | $ | 12,428,671 | $ | 5,149,602 | $ | 12,520,673 | ||||||||
Shares outstanding | 300,000 | 400,000 | 200,000 | 400,000 | ||||||||||||
Net asset value | $ | 28.84 | $ | 31.07 | $ | 25.75 | $ | 31.30 | ||||||||
Shares authorized | Unlimited | Unlimited | Unlimited | Unlimited | ||||||||||||
Par value | None | None | None | None | ||||||||||||
(a) Securities loaned, at value | $ | 37,788 | $ | 159,674 | $ | 6,011 | $ | 35,930 | ||||||||
(b) Investments, at cost — Unaffiliated | $ | 7,767,908 | $ | 11,312,766 | $ | 4,876,183 | $ | 11,079,152 | ||||||||
(c) Investments, at cost — Affiliated | $ | 106,575 | $ | 273,237 | $ | 50,183 | $ | 135,956 |
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 |
Statements of Assets and Liabilities (unaudited) (continued)
January 31, 2020
iShares Evolved U.S. Innovative Healthcare ETF | iShares Evolved U.S. Media and Entertainment ETF | iShares Evolved U.S. Technology ETF | ||||||||||
ASSETS | ||||||||||||
Investments in securities, at value (including securities on loan)(a): | ||||||||||||
Unaffiliated(b) | $ | 5,301,208 | $ | 6,677,302 | $ | 23,727,209 | ||||||
Affiliated(c) | 356,885 | 223,914 | 268,176 | |||||||||
Cash | 487 | 623 | 17,607 | |||||||||
Receivables: | ||||||||||||
Investments sold | 4,067 | — | — | |||||||||
Securities lending income — Affiliated | 154 | 180 | 65 | |||||||||
Dividends | 9,323 | 1,721 | 3,867 | |||||||||
Total assets | 5,672,124 | 6,903,740 | 24,016,924 | |||||||||
LIABILITIES | ||||||||||||
Collateral on securities loaned, at value | 249,803 | 178,846 | 130,270 | |||||||||
Payables: | ||||||||||||
Investments purchased | 287 | — | — | |||||||||
Investment advisory fees | 855 | 1,044 | 3,285 | |||||||||
Other liabilities | — | — | 16,608 | |||||||||
Total liabilities | 250,945 | 179,890 | 150,163 | |||||||||
NET ASSETS | $ | 5,421,179 | $ | 6,723,850 | $ | 23,866,761 | ||||||
NET ASSETS CONSIST OF: | ||||||||||||
Paid-in capital | $ | 4,918,256 | $ | 6,342,426 | $ | 20,147,810 | ||||||
Accumulated earnings | 502,923 | 381,424 | 3,718,951 | |||||||||
NET ASSETS | $ | 5,421,179 | $ | 6,723,850 | $ | 23,866,761 | ||||||
Shares outstanding | 200,000 | 250,000 | 700,000 | |||||||||
Net asset value | $ | 27.11 | $ | 26.90 | $ | 34.10 | ||||||
Shares authorized | Unlimited | Unlimited | Unlimited | |||||||||
Par value | None | None | None | |||||||||
(a) Securities loaned, at value | $ | 235,199 | $ | 176,547 | $ | 125,832 | ||||||
(b) Investments, at cost — Unaffiliated | $ | 4,888,050 | $ | 6,475,851 | $ | 20,026,152 | ||||||
(c) Investments, at cost — Affiliated | $ | 356,819 | $ | 223,878 | $ | 268,146 |
See notes to financial statements.
F i n a n c i a l S t a t e m e n t s | 35 |
Statements of Operations (unaudited)
Six Months Ended January 31, 2020
iShares Evolved U.S. Consumer Staples ETF | iShares Evolved U.S. Discretionary Spending ETF | iShares Evolved U.S. Financials ETF | iShares Evolved U.S. Healthcare Staples ETF | |||||||||||||
INVESTMENT INCOME | ||||||||||||||||
Dividends — Unaffiliated | $ | 107,962 | $ | 63,219 | $ | 63,743 | $ | 49,879 | ||||||||
Dividends — Affiliated | 370 | 672 | 215 | 424 | ||||||||||||
Securities lending income — Affiliated — net | 835 | 333 | 23 | 450 | ||||||||||||
Foreign taxes withheld | — | — | (16 | ) | — | |||||||||||
Total investment income | 109,167 | 64,224 | 63,965 | 50,753 | ||||||||||||
EXPENSES | ||||||||||||||||
Investment advisory fees | 7,157 | 8,351 | 4,541 | 7,636 | ||||||||||||
Total expenses | 7,157 | 8,351 | 4,541 | 7,636 | ||||||||||||
Net investment income | 102,010 | 55,873 | 59,424 | 43,117 | ||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||||||
Net realized gain (loss) from: | ||||||||||||||||
Investments — Unaffiliated | (14,814 | ) | 19,426 | 21,981 | 2,104 | |||||||||||
Investments — Affiliated | (5 | ) | (16 | ) | (4 | ) | 23 | |||||||||
In-kind redemptions — Unaffiliated | — | 430,691 | — | — | ||||||||||||
Net realized gain (loss) | (14,819 | ) | 450,101 | 21,977 | 2,127 | |||||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||
Investments — Unaffiliated | 381,131 | 90,613 | 156,034 | 538,680 | ||||||||||||
Investments — Affiliated | 6 | 17 | 1 | (1 | ) | |||||||||||
Net change in unrealized appreciation (depreciation) | 381,137 | 90,630 | 156,035 | 538,679 | ||||||||||||
Net realized and unrealized gain | 366,318 | 540,731 | 178,012 | 540,806 | ||||||||||||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 468,328 | $ | 596,604 | $ | 237,436 | $ | 583,923 |
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 |
Statements of Operations (unaudited) (continued)
Six Months Ended January 31, 2020
iShares Evolved U.S. Innovative Healthcare ETF | iShares Evolved U.S. Media and Entertainment ETF | iShares Evolved U.S. Technology ETF | ||||||||||
INVESTMENT INCOME | ||||||||||||
Dividends — Unaffiliated | $ | 46,919 | $ | 28,773 | $ | 83,046 | ||||||
Dividends — Affiliated | 571 | 572 | 1,089 | |||||||||
Securities lending income — Affiliated — net | 1,086 | 856 | 768 | |||||||||
Total investment income | 48,576 | 30,201 | 84,903 | |||||||||
EXPENSES | ||||||||||||
Investment advisory fees | 4,719 | 5,368 | 15,798 | |||||||||
Total expenses | 4,719 | 5,368 | 15,798 | |||||||||
Net investment income | 43,857 | 24,833 | 69,105 | |||||||||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||
Net realized gain (loss) from: | ||||||||||||
Investments — Unaffiliated | 100,572 | (25,562 | ) | 13,069 | ||||||||
Investments — Affiliated | (2 | ) | 4 | (132 | ) | |||||||
In-kind redemptions — Unaffiliated | — | 209,807 | — | |||||||||
Net realized gain | 100,570 | 184,249 | 12,937 | |||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||
Investments — Unaffiliated | 466,455 | (325,412 | ) | 2,325,052 | ||||||||
Investments — Affiliated | 22 | 27 | 22 | |||||||||
Net change in unrealized appreciation (depreciation) | 466,477 | (325,385 | ) | 2,325,074 | ||||||||
Net realized and unrealized gain (loss) | 567,047 | (141,136 | ) | 2,338,011 | ||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | 610,904 | $ | (116,303 | ) | $ | 2,407,116 |
See notes to financial statements.
F i n a n c i a l S t a t e m e n t s | 37 |
Statements of Changes in Net Assets
iShares Evolved U.S. Consumer Staples ETF | iShares Evolved U.S. Discretionary Spending ETF | |||||||||||||||
Six Months Ended 01/31/20 (unaudited) | Year Ended 07/31/19 | Six Months Ended 01/31/20 (unaudited) | Year Ended 07/31/19 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income | $ | 102,010 | $ | 98,934 | $ | 55,873 | $ | 78,181 | ||||||||
Net realized gain (loss) | (14,819 | ) | 8,811 | 450,101 | 33,880 | |||||||||||
Net change in unrealized appreciation (depreciation) | 381,137 | 409,474 | 90,630 | 506,932 | ||||||||||||
Net increase in net assets resulting from operations | 468,328 | 517,219 | 596,604 | 618,993 | ||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||||||||||
Decrease in net assets resulting from distributions to shareholders | (113,816 | ) | (135,321 | ) | (103,771 | ) | (92,875 | ) | ||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||
Net increase in net assets derived from capital share transactions | 4,160,450 | — | 6,040,840 | — | ||||||||||||
NET ASSETS | ||||||||||||||||
Total increase in net assets | 4,514,962 | 381,898 | 6,533,673 | 526,118 | ||||||||||||
Beginning of period | 4,137,138 | 3,755,240 | 5,894,998 | 5,368,880 | ||||||||||||
End of period | $ | 8,652,100 | $ | 4,137,138 | $ | 12,428,671 | $ | 5,894,998 |
(a) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
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 Changes in Net Assets (continued)
iShares Evolved U.S. Financials ETF | iShares Evolved U.S. Healthcare Staples ETF | |||||||||||||||
Six Months Ended 01/31/20 (unaudited) | Year Ended 07/31/19 | Six Months Ended 01/31/20 (unaudited) | Year Ended 07/31/19 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income | $ | 59,424 | $ | 100,542 | $ | 43,117 | $ | 52,022 | ||||||||
Net realized gain (loss) | 21,977 | (20,809 | ) | 2,127 | 210,303 | |||||||||||
Net change in unrealized appreciation (depreciation) | 156,035 | 72,632 | 538,679 | 251,235 | ||||||||||||
Net increase in net assets resulting from operations | 237,436 | 152,365 | 583,923 | 513,560 | ||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||||||||||
Decrease in net assets resulting from distributions to shareholders | (59,009 | ) | (100,143 | ) | (109,308 | ) | (80,138 | ) | ||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||
Net increase in net assets derived from capital share transactions | — | — | 4,681,533 | 1,435,729 | ||||||||||||
NET ASSETS | ||||||||||||||||
Total increase in net assets | 178,427 | 52,222 | 5,156,148 | 1,869,151 | ||||||||||||
Beginning of period | 4,971,175 | 4,918,953 | 7,364,525 | 5,495,374 | ||||||||||||
End of period | $ | 5,149,602 | $ | 4,971,175 | $ | 12,520,673 | $ | 7,364,525 |
(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 | 39 |
Statements of Changes in Net Assets (continued)
iShares Evolved U.S. Innovative Healthcare ETF | iShares Evolved U.S. Media and Entertainment ETF | |||||||||||||||
Six Months Ended 01/31/20 (unaudited) | Year Ended 07/31/19 | Six Months Ended 01/31/20 (unaudited) | Year Ended 07/31/19 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income | $ | 43,857 | $ | 73,830 | $ | 24,833 | $ | 54,799 | ||||||||
Net realized gain | 100,570 | 78,944 | 184,249 | 208,253 | ||||||||||||
Net change in unrealized appreciation (depreciation) | 466,477 | (309,456 | ) | (325,385 | ) | 249,943 | ||||||||||
Net increase (decrease) in net assets resulting from operations | 610,904 | (156,682 | ) | (116,303 | ) | 512,995 | ||||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||||||||||
Decrease in net assets resulting from distributions to shareholders | (138,532 | ) | (100,052 | ) | (230,985 | ) | (81,138 | ) | ||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||
Net increase in net assets derived from capital share transactions | — | — | 15,312 | 1,347,171 | ||||||||||||
NET ASSETS | ||||||||||||||||
Total increase (decrease) in net assets | 472,372 | (256,734 | ) | (331,976 | ) | 1,779,028 | ||||||||||
Beginning of period | 4,948,807 | 5,205,541 | 7,055,826 | 5,276,798 | ||||||||||||
End of period | $ | 5,421,179 | $ | 4,948,807 | $ | 6,723,850 | $ | 7,055,826 |
(a) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
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 Changes in Net Assets (continued)
iShares Evolved U.S. Technology ETF | ||||||||
Six Months Ended 01/31/20 (unaudited) | Year Ended 07/31/19 | |||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||
OPERATIONS | ||||||||
Net investment income | $ | 69,105 | $ | 56,561 | ||||
Net realized gain | 12,937 | 40,935 | ||||||
Net change in unrealized appreciation (depreciation) | 2,325,074 | 1,019,560 | ||||||
Net increase in net assets resulting from operations | 2,407,116 | 1,117,056 | ||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||
Decrease in net assets resulting from distributions to shareholders | (89,153 | ) | (74,296 | ) | ||||
CAPITAL SHARE TRANSACTIONS | ||||||||
Net increase in net assets derived from capital share transactions | 5,078,375 | 10,161,391 | ||||||
NET ASSETS | ||||||||
Total increase in net assets | 7,396,338 | 11,204,151 | ||||||
Beginning of period | 16,470,423 | 5,266,272 | ||||||
End of period | $ | 23,866,761 | $ | 16,470,423 |
(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 | 41 |
(For a share outstanding throughout each period)
iShares Evolved U.S. Consumer Staples ETF | ||||||||||||
Six Months Ended 01/31/20 (unaudited) | Year Ended 07/31/19 | Period From 03/21/18(a) to 07/31/18 | ||||||||||
Net asset value, beginning of period | $ | 27.58 | $ | 25.03 | $ | 24.62 | ||||||
Net investment income(b) | 0.36 | 0.66 | 0.31 | (c) | ||||||||
Net realized and unrealized gain(d) | 1.28 | 2.80 | 0.26 | |||||||||
Net increase from investment operations | 1.64 | 3.46 | 0.57 | |||||||||
Distributions(e) | ||||||||||||
From net investment income | (0.38 | ) | (0.85 | ) | (0.16 | ) | ||||||
From net realized gain | — | (0.06 | ) | — | ||||||||
Total distributions | (0.38 | ) | (0.91 | ) | (0.16 | ) | ||||||
Net asset value, end of period | $ | 28.84 | $ | 27.58 | $ | 25.03 | ||||||
Total Return | ||||||||||||
Based on net asset value | 5.99 | %(f) | 14.23 | % | 2.34 | %(f) | ||||||
Ratios to Average Net Assets | ||||||||||||
Total expenses | 0.18 | %(g) | 0.18 | % | 0.18 | %(g) | ||||||
Net investment income | 2.57 | %(g) | 2.59 | % | 3.58 | %(c)(g) | ||||||
Supplemental Data | ||||||||||||
Net assets, end of period (000) | $ | 8,652 | $ | 4,137 | $ | 3,755 | ||||||
Portfolio turnover rate(h) | 8 | %(f) | 9 | % | 0 | %(f) |
(a) | Commencement of operations. |
(b) | Based on average shares outstanding. |
(c) | Includes a special distribution from Dr Pepper Snapple Group Inc. Excluding such special distribution, the net investment income would have been $0.21 per share and 2.39% of average net assets. |
(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.
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 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares Evolved U.S. Discretionary Spending ETF | ||||||||||||
Six Months Ended 01/31/20 (unaudited) | Year Ended 07/31/19 | Period From 03/21/18(a) to 07/31/18 | ||||||||||
Net asset value, beginning of period | $ | 29.47 | $ | 26.84 | $ | 24.95 | ||||||
Net investment income(b) | 0.18 | 0.39 | 0.12 | |||||||||
Net realized and unrealized gain(c) | 1.74 | 2.70 | 1.86 | |||||||||
Net increase from investment operations | 1.92 | 3.09 | 1.98 | |||||||||
Distributions(d) | ||||||||||||
From net investment income | (0.16 | ) | (0.41 | ) | (0.09 | ) | ||||||
From net realized gain | (0.16 | ) | (0.05 | ) | — | |||||||
Total distributions | (0.32 | ) | (0.46 | ) | (0.09 | ) | ||||||
Net asset value, end of period | $ | 31.07 | $ | 29.47 | $ | 26.84 | ||||||
Total Return | ||||||||||||
Based on net asset value | 6.53 | %(e) | 11.73 | % | 7.96 | %(e) | ||||||
Ratios to Average Net Assets | ||||||||||||
Total expenses | 0.18 | %(f) | 0.18 | % | 0.18 | %(f) | ||||||
Net investment income | 1.20 | %(f) | 1.42 | % | 1.25 | %(f) | ||||||
Supplemental Data | ||||||||||||
Net assets, end of period (000) | $ | 12,429 | $ | 5,895 | $ | 5,369 | ||||||
Portfolio turnover rate(g) | 6 | %(e) | 11 | % | 0 | %(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) | Annualized. |
(g) | Portfolio turnover rate excludes in-kind transactions. |
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 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares Evolved U.S. Financials ETF | ||||||||||||
Six Months Ended 01/31/20 (unaudited) | Year Ended 07/31/19 | Period From 03/21/18(a) to 07/31/18 | ||||||||||
Net asset value, beginning of period | $ | 24.86 | $ | 24.59 | $ | 24.98 | ||||||
Net investment income(b) | 0.30 | 0.50 | 0.15 | |||||||||
Net realized and unrealized gain (loss)(c) | 0.89 | 0.27 | (0.43 | ) | ||||||||
Net increase (decrease) from investment operations | 1.19 | 0.77 | (0.28 | ) | ||||||||
Distributions(d) | ||||||||||||
From net investment income | (0.30 | ) | (0.50 | ) | (0.11 | ) | ||||||
Total distributions | (0.30 | ) | (0.50 | ) | (0.11 | ) | ||||||
Net asset value, end of period | $ | 25.75 | $ | 24.86 | $ | 24.59 | ||||||
Total Return | ||||||||||||
Based on net asset value | 4.79 | %(e) | 3.35 | % | (1.11 | )%(e)(f) | ||||||
Ratios to Average Net Assets | ||||||||||||
Total expenses | 0.18 | %(g) | 0.18 | % | 0.18 | %(g) | ||||||
Net investment income | 2.36 | %(g) | 2.15 | % | 1.65 | %(g) | ||||||
Supplemental Data | ||||||||||||
Net assets, end of period (000) | $ | 5,150 | $ | 4,971 | $ | 4,919 | ||||||
Portfolio turnover rate(h) | 5 | %(e) | 10 | % | 13 | %(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) | Includes payment received from an affiliate, which impacted the Fund’s total return. Excluding the payment from an affiliate, the Fund’s total return would have been -1.40%. |
(g) | Annualized. |
(h) | Portfolio turnover rate excludes in-kind transactions. |
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 (continued)
(For a share outstanding throughout each period)
iShares Evolved U.S. Healthcare Staples ETF | ||||||||||||
Six Months Ended 01/31/20 (unaudited) | Year Ended 07/31/19 | Period From 03/21/18(a) to 07/31/18 | ||||||||||
Net asset value, beginning of period | $ | 29.46 | $ | 27.48 | $ | 24.86 | ||||||
Net investment income(b) | 0.16 | 0.27 | 0.08 | |||||||||
Net realized and unrealized gain(c) | 2.06 | 2.11 | 2.60 | |||||||||
Net increase from investment operations | 2.22 | 2.38 | 2.68 | |||||||||
Distributions(d) | ||||||||||||
From net investment income | (0.14 | ) | (0.28 | ) | (0.06 | ) | ||||||
From net realized gain | (0.24 | ) | (0.12 | ) | — | |||||||
Total distributions | (0.38 | ) | (0.40 | ) | (0.06 | ) | ||||||
Net asset value, end of period | $ | 31.30 | $ | 29.46 | $ | 27.48 | ||||||
Total Return | ||||||||||||
Based on net asset value | 7.54 | %(e) | 8.77 | % | 10.77 | %(e) | ||||||
Ratios to Average Net Assets | ||||||||||||
Total expenses | 0.18 | %(f) | 0.18 | % | 0.18 | %(f) | ||||||
Net investment income | 1.02 | %(f) | 0.95 | % | 0.87 | %(f) | ||||||
Supplemental Data | ||||||||||||
Net assets, end of period (000) | $ | 12,521 | $ | 7,365 | $ | 5,495 | ||||||
Portfolio turnover rate(g) | 7 | %(e) | 12 | % | 0 | %(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) | Annualized. |
(g) | Portfolio turnover rate excludes in-kind transactions. |
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 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares Evolved U.S. Innovative Healthcare ETF | ||||||||||||
Six Months Ended 01/31/20 (unaudited) | Year Ended 07/31/19 | Period From 03/21/18(a) to 07/31/18 | ||||||||||
Net asset value, beginning of period | $ | 24.74 | $ | 26.03 | $ | 24.97 | ||||||
Net investment income(b) | 0.22 | 0.37 | 0.11 | |||||||||
Net realized and unrealized gain (loss)(c) | 2.84 | (1.15 | ) | 1.04 | ||||||||
Net increase (decrease) from investment operations | 3.06 | (0.78 | ) | 1.15 | ||||||||
Distributions(d) | ||||||||||||
From net investment income | (0.21 | ) | (0.36 | ) | (0.09 | ) | ||||||
From net realized gain | (0.48 | ) | (0.15 | ) | — | |||||||
Total distributions | (0.69 | ) | (0.51 | ) | (0.09 | ) | ||||||
Net asset value, end of period | $ | 27.11 | $ | 24.74 | $ | 26.03 | ||||||
Total Return | ||||||||||||
Based on net asset value | 12.38 | %(e) | (3.04 | )% | 4.62 | %(e) | ||||||
Ratios to Average Net Assets | ||||||||||||
Total expenses | 0.18 | %(f) | 0.18 | % | 0.18 | %(f) | ||||||
Net investment income | 1.67 | %(f) | 1.45 | % | 1.25 | %(f) | ||||||
Supplemental Data | ||||||||||||
Net assets, end of period (000) | $ | 5,421 | $ | 4,949 | $ | 5,206 | ||||||
Portfolio turnover rate(g) | 12 | %(e) | 8 | % | 3 | %(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) | Annualized. |
(g) | 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 Evolved U.S. Media and Entertainment ETF | ||||||||||||
Six Months Ended 01/31/20 (unaudited) | Year Ended 07/31/19 | Period From 03/21/18(a) to 07/31/18 | ||||||||||
Net asset value, beginning of period | $ | 28.22 | $ | 26.38 | $ | 25.05 | ||||||
Net investment income(b) | 0.11 | 0.26 | 0.10 | |||||||||
Net realized and unrealized gain (loss)(c) | (0.28 | ) | 1.97 | 1.29 | ||||||||
Net increase (decrease) from investment operations | (0.17 | ) | 2.23 | 1.39 | ||||||||
Distributions(d) | ||||||||||||
From net investment income | (0.14 | ) | (0.26 | ) | (0.06 | ) | ||||||
From net realized gain | (1.01 | ) | (0.13 | ) | — | |||||||
Total distributions | (1.15 | ) | (0.39 | ) | (0.06 | ) | ||||||
Net asset value, end of period | $ | 26.90 | $ | 28.22 | $ | 26.38 | ||||||
Total Return | ||||||||||||
Based on net asset value | (0.56 | )%(e) | 8.64 | % | 5.54 | %(e) | ||||||
Ratios to Average Net Assets | ||||||||||||
Total expenses | 0.18 | %(f) | 0.18 | % | 0.18 | %(f) | ||||||
Net investment income | 0.83 | %(f) | 0.99 | % | 1.04 | %(f) | ||||||
Supplemental Data | ||||||||||||
Net assets, end of period (000) | $ | 6,724 | $ | 7,056 | $ | 5,277 | ||||||
Portfolio turnover rate(g) | 8 | %(e) | 10 | % | 0 | %(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) | Annualized. |
(g) | Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
F i n a n c i a l S t a t e m e n t s | 47 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares Evolved U.S. Technology ETF | ||||||||||||
Six Months Ended 01/31/20 (unaudited) | Year Ended 07/31/19 | Period From 03/21/18(a) to 07/31/18 | ||||||||||
Net asset value, beginning of period | $ | 29.95 | $ | 26.33 | $ | 24.89 | ||||||
Net investment income(b) | 0.12 | 0.23 | 0.06 | |||||||||
Net realized and unrealized gain(c) | 4.19 | 3.73 | 1.43 | |||||||||
Net increase from investment operations | 4.31 | 3.96 | 1.49 | |||||||||
Distributions(d) | ||||||||||||
From net investment income | (0.11 | ) | (0.27 | ) | (0.05 | ) | ||||||
From net realized gain | (0.05 | ) | (0.07 | ) | — | |||||||
Total distributions | (0.16 | ) | (0.34 | ) | (0.05 | ) | ||||||
Net asset value, end of period | $ | 34.10 | $ | 29.95 | $ | 26.33 | ||||||
Total Return | ||||||||||||
Based on net asset value | 14.45 | %(e) | 15.27 | % | 6.00 | %(e) | ||||||
Ratios to Average Net Assets | ||||||||||||
Total expenses | 0.18 | %(f) | 0.18 | % | 0.18 | %(f) | ||||||
Net investment income | 0.79 | %(f) | 0.85 | % | 0.70 | %(f) | ||||||
Supplemental Data | ||||||||||||
Net assets, end of period (000) | $ | 23,867 | $ | 16,470 | $ | 5,266 | ||||||
Portfolio turnover rate(g) | 4 | %(e) | 7 | % | 0 | %(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) | Annualized. |
(g) | 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 |
Notes to Financial Statements (unaudited)
1. | ORGANIZATION |
iShares U.S. ETF Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust is organized as a Delaware statutory trust and is authorized to have multiple series or portfolios.
These financial statements relate only to the following funds (each, a “Fund,” and collectively, the “Funds”):
Diversification | |
iShares ETF | Classification |
Evolved U.S. Consumer Staples | Non-diversified |
Evolved U.S. Discretionary Spending | Non-diversified |
Evolved U.S. Financials | Non-diversified |
Evolved U.S. Healthcare Staples | Non-diversified |
Evolved U.S. Innovative Healthcare | Non-diversified |
Evolved U.S. Media and Entertainment | Non-diversified |
Evolved U.S. Technology | 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 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 January 31, 2020, if any, are disclosed in the statement of assets and liabilities.
In-kind Redemptions: For financial reporting purposes, in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Funds. Because such gains or losses are not taxable to the Funds and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) to paid-in capital at the end of the Funds’ tax year. These reclassifications have no effect on net assets or net asset value 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 Trustees of the Trust (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.
F i n a n c i a l S t a t e m e n t s | 49 |
Notes to Financial Statements (unaudited) (continued)
Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of each Fund’s assets and liabilities:
• | Equity investments traded on a recognized securities exchange are valued at that day’s 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”). |
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 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 January 31, 2020, any securities on loan were collateralized by cash and/or U.S. government obligations. Cash collateral received was invested in money market funds managed by BlackRock Fund Advisors (“BFA”), the Funds’ investment adviser, or its affiliates and is disclosed in the schedules of investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan for each Fund, if any, are also disclosed in its schedule of investments. The market value of any securities on loan as of January 31, 2020 and the value of the related cash collateral are disclosed in the statements of assets and liabilities.
Securities lending transactions are entered into by a fund under Master Securities Lending Agreements (each, an “MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. The value of the collateral is typically greater than the market value of the securities loaned, leaving the lender with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, absent an event of default, the borrower can resell or re-pledge the loaned securities, and the fund can reinvest cash collateral received in connection with loaned securities.
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)
The following table is a summary of the securities lending agreements by counterparty which are subject to offset under an MSLA as of January 31, 2020:
iShares ETF and Counterparty | Market Value of Securities on Loan | Cash Collateral Received | (a) | Non-Cash Collateral Received | Net Amount | |||||||||||
Evolved U.S. Consumer Staples | ||||||||||||||||
BofA Securities, Inc. | $ | 12,391 | $ | 12,391 | $ | — | $ | — | ||||||||
Citigroup Global Markets Inc. | 25,397 | 25,397 | — | — | ||||||||||||
$ | 37,788 | $ | 37,788 | $ | — | $ | — | |||||||||
Evolved U.S. Discretionary Spending | ||||||||||||||||
Citigroup Global Markets Inc. | $ | 14,607 | $ | 14,607 | $ | — | $ | — | ||||||||
Credit Suisse AG Dublin Branch | 16,368 | 16,368 | — | — | ||||||||||||
HSBC Bank PLC | 11,512 | 11,512 | — | — | ||||||||||||
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending) | 77,534 | 77,534 | — | — | ||||||||||||
Scotia Capital (USA) Inc. | 6,475 | 6,475 | — | — | ||||||||||||
SG Americas Securities LLC | 15,656 | 15,656 | — | — | ||||||||||||
UBS AG | 17,522 | 17,522 | — | — | ||||||||||||
$ | 159,674 | $ | 159,674 | $ | — | $ | — | |||||||||
Evolved U.S. Financials | ||||||||||||||||
Barclays Capital Inc | $ | 4,455 | $ | 4,455 | $ | — | $ | — | ||||||||
Credit Suisse Securities (USA) LLC | 1,556 | 1,556 | — | — | ||||||||||||
$ | 6,011 | $ | 6,011 | $ | — | $ | — | |||||||||
Evolved U.S. Healthcare Staples | ||||||||||||||||
Barclays Capital Inc | $ | 1,974 | $ | 1,955 | $ | — | $ | (19 | )(b) | |||||||
HSBC Bank PLC | 11,678 | 11,678 | — | — | ||||||||||||
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending) | 4,588 | 4,588 | — | — | ||||||||||||
SG Americas Securities LLC | 17,690 | 17,690 | — | — | ||||||||||||
$ | 35,930 | $ | 35,911 | $ | — | $ | (19 | ) | ||||||||
Evolved U.S. Innovative Healthcare | ||||||||||||||||
Barclays Capital Inc | $ | 22,486 | $ | 22,486 | $ | — | $ | — | ||||||||
Citadel Clearing LLC | 3,505 | 3,505 | — | — | ||||||||||||
Citigroup Global Markets Inc. | 67,984 | 67,984 | — | — | ||||||||||||
Credit Suisse AG Dublin Branch | 29,691 | 29,691 | — | — | ||||||||||||
Credit Suisse Securities (USA) LLC | 13,050 | 13,050 | — | — | ||||||||||||
HSBC Bank PLC | 38,118 | 38,118 | — | — | ||||||||||||
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending) | 46,729 | 46,729 | — | — | ||||||||||||
SG Americas Securities LLC | 7,281 | 7,281 | — | — | ||||||||||||
UBS AG | 6,355 | 6,355 | — | — | ||||||||||||
$ | 235,199 | $ | 235,199 | $ | — | $ | — | |||||||||
Evolved U.S. Media and Entertainment | ||||||||||||||||
Citigroup Global Markets Inc. | $ | 93,313 | $ | 93,313 | $ | — | $ | — | ||||||||
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending) | 14,412 | 14,412 | — | — | ||||||||||||
SG Americas Securities LLC | 68,822 | 66,899 | — | (1,923 | )(b) | |||||||||||
$ | 176,547 | $ | 174,624 | $ | — | $ | (1,923 | ) | ||||||||
Evolved U.S. Technology | ||||||||||||||||
Credit Suisse AG Dublin Branch | $ | 38,906 | $ | 38,906 | $ | — | $ | — | ||||||||
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending) | 41,457 | 41,457 | — | — | ||||||||||||
UBS AG | 45,469 | 45,469 | — | — | ||||||||||||
$ | 125,832 | $ | 125,832 | $ | — | $ | — |
(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.
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)
5. | INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES |
Investment Advisory Fees: Pursuant to an Investment Advisory Agreement with the Trust, BFA manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA is responsible for substantially all expenses of the Funds, except (i) interest and taxes; (ii) brokerage commissions and other expenses connected with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee payable to BFA; and (v) litigation expenses and any extraordinary expenses (in each case as determined by a majority of the independent trustees).
For its investment advisory services to each 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 | |||
Evolved U.S. Consumer Staples | 0.18 | % | ||
Evolved U.S. Discretionary Spending | 0.18 | |||
Evolved U.S. Financials | 0.18 | |||
Evolved U.S. Healthcare Staples | 0.18 | |||
Evolved U.S. Innovative Healthcare | 0.18 | |||
Evolved U.S. Media and Entertainment | 0.18 | |||
Evolved U.S. Technology | 0.18 |
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 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.
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 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.
Prior to January 1, 2020, each 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. 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, each Fund, pursuant to the securities lending agreement, retained for the remainder of that calendar year 75% of securities lending income (which excludes collateral investment fees), and the amount retained could never be less than 65% 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 January 31, 2020, the Funds paid BTC the following amounts for securities lending agent services:
iShares ETF | Fees Paid to BTC | |||
Evolved U.S. Consumer Staples | $ | 311 | ||
Evolved U.S. Discretionary Spending | 137 | |||
Evolved U.S. Financials | 9 | |||
Evolved U.S. Healthcare Staples | 176 | |||
Evolved U.S. Innovative Healthcare | 431 | |||
Evolved U.S. Media and Entertainment | 363 | |||
Evolved U.S. Technology | 327 |
Officers and Trustees: Certain officers and/or trustees of the Trust are officers and/or trustees of BlackRock or its affiliates.
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.
52 | 2 0 2 0 | 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)
6. | PURCHASES AND SALES |
For the six months ended January 31, 2020, purchases and sales of investments, excluding in-kind transactions and short-term investments, were as follows:
iShares ETF | Purchases | Sales | ||||||
Evolved U.S. Consumer Staples | $ | 656,460 | $ | 694,918 | ||||
Evolved U.S. Discretionary Spending | 555,910 | 569,981 | ||||||
Evolved U.S. Financials | 241,029 | 260,095 | ||||||
Evolved U.S. Healthcare Staples | 628,808 | 727,301 | ||||||
Evolved U.S. Innovative Healthcare | 631,861 | 768,224 | ||||||
Evolved U.S. Media and Entertainment | 455,576 | 658,427 | ||||||
Evolved U.S. Technology | 809,885 | 721,596 |
For the six months ended January 31, 2020, in-kind transactions were as follows:
In-kind | In-kind | |||||||
iShares ETF | Purchases | Sales | ||||||
Evolved U.S. Consumer Staples | $ | 4,134,615 | $ | — | ||||
Evolved U.S. Discretionary Spending | 7,468,183 | 1,539,245 | ||||||
Evolved U.S. Healthcare Staples | 4,645,894 | — | ||||||
Evolved U.S. Media and Entertainment | 1,368,686 | 1,350,786 | ||||||
Evolved U.S. Technology | 5,041,883 | — |
7. | INCOME TAX INFORMATION |
Each Fund is treated as an entity separate from the Trust’s other funds for federal income tax purposes. It is the policy of each Fund to qualify as a regulated investment company by complying with the provisions applicable to regulated investment companies, as defined under Subchapter M of the Internal Revenue Code of 1986, as amended, and to annually distribute substantially all of its ordinary income and any net capital gains (taking into account any capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income and excise taxes. Accordingly, no provision for federal income taxes is required.
Management has analyzed tax laws and regulations and their application to the Funds as of January 31, 2020, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.
As of July 31, 2019, the Funds had non-expiring capital loss carryforwards available to offset future realized capital gains as follows:
iShares ETF | Non-Expiring | |||
Evolved U.S. Financials | $ | 44,341 |
As of January 31, 2020, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:
iShares ETF | Tax Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | ||||||||||||
Evolved U.S. Consumer Staples | $ | 7,885,064 | $ | 979,882 | $ | (182,398 | ) | $ | 797,484 | |||||||
Evolved U.S. Discretionary Spending | 11,586,003 | 1,352,805 | (347,712 | ) | 1,005,093 | |||||||||||
Evolved U.S. Financials | 4,926,415 | 527,003 | (302,690 | ) | 224,313 | |||||||||||
Evolved U.S. Healthcare Staples | 11,225,312 | 1,410,542 | (100,911 | ) | 1,309,631 | |||||||||||
Evolved U.S. Innovative Healthcare | 5,244,869 | 879,440 | (466,216 | ) | 413,224 | |||||||||||
Evolved U.S. Media and Entertainment | 6,701,668 | 736,906 | (537,358 | ) | 199,548 | |||||||||||
Evolved U.S. Technology | 20,297,827 | 3,923,773 | (226,215 | ) | 3,697,558 |
8. | 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.
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
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)
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.
A recent outbreak of respiratory disease caused by a novel coronavirus was first detected in China in December 2019 and has now been detected internationally. This coronavirus has resulted in closing borders, quarantines, disruptions to supply chains and customer activity, as well as general concern and uncertainty. The impact of epidemics and pandemics such as the coronavirus, 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. The impact of the outbreak 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 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.
9. | 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 01/31/20 | Year Ended 07/31/19 | |||||||||||||||
iShares ETF | Shares | Amount | Shares | Amount | ||||||||||||
Evolved U.S. Consumer Staples | ||||||||||||||||
Shares sold | 150,000 | $ | 4,160,450 | — | $ | — | ||||||||||
Evolved U.S. Discretionary Spending | ||||||||||||||||
Shares sold | 250,000 | $ | 7,611,971 | — | $ | — | ||||||||||
Shares redeemed | (50,000 | ) | (1,571,131 | ) | — | — | ||||||||||
Net increase | 200,000 | $ | 6,040,840 | — | $ | — | ||||||||||
Evolved U.S. Healthcare Staples | ||||||||||||||||
Shares sold | 150,000 | $ | 4,681,533 | 100,000 | $ | 2,773,961 | ||||||||||
Shares redeemed | — | — | (50,000 | ) | (1,338,232 | ) | ||||||||||
Net increase | 150,000 | $ | 4,681,533 | 50,000 | $ | 1,435,729 | ||||||||||
Evolved U.S. Media and Entertainment | ||||||||||||||||
Shares sold | 50,000 | $ | 1,376,334 | 50,000 | $ | 1,347,171 | ||||||||||
Shares redeemed | (50,000 | ) | (1,361,022 | ) | — | — | ||||||||||
Net increase | — | $ | 15,312 | 50,000 | $ | 1,347,171 | ||||||||||
Evolved U.S. Technology | ||||||||||||||||
Shares sold | 150,000 | $ | 5,078,375 | 350,000 | $ | 10,161,391 |
The consideration for the purchase of Creation Units of a fund in the Trust generally consists of the in-kind deposit of a designated portfolio of securities and a specified amount of cash. Certain funds in the Trust may be offered in Creation Units solely or partially for cash in U.S. dollars. Investors purchasing and redeeming Creation Units may pay a purchase transaction fee and a redemption transaction fee directly to State Street Bank and Trust Company, the Trust’s administrator, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units, including Creation Units for cash. Investors transacting in Creation Units for cash may also pay an additional variable charge to compensate the relevant fund for certain transaction costs (i.e., stamp taxes, taxes on currency or other financial transactions, and brokerage costs) and market impact expenses relating to investing in portfolio securities. 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.
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Notes to Financial Statements (unaudited) (continued)
10. 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.
11. SUBSEQUENT EVENTS
Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.
N o t e s t o F i n a n c i a l S t a t e m e n t s | 55 |
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 Trustees (the “Board”) of iShares Evolved U.S. Consumer Staples ETF, iShares Evolved U.S. Discretionary Spending ETF, iShares Evolved U.S. Financials ETF, iShares Evolved U.S. Healthcare Staples ETF, iShares Evolved U.S. Innovative Healthcare ETF, iShares Evolved U.S. Media and Entertainment ETF and iShares Evolved U.S. Technology 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 | ||||||||||||||||||||||||
Evolved U.S. Consumer Staples(a) | $ | 0.297672 | $ | — | $ | 0.081716 | $ | 0.379388 | 78 | % | —% | 22 | % | 100 | % | |||||||||||||||||
Evolved U.S. Discretionary Spending(a) | 0.156194 | 0.155269 | 0.006056 | 0.317519 | 49 | 49 | 2 | 100 | ||||||||||||||||||||||||
Evolved U.S. Financials(a) | 0.275366 | — | 0.019680 | 0.295046 | 93 | — | 7 | 100 | ||||||||||||||||||||||||
Evolved U.S. Healthcare Staples(a) | 0.113097 | 0.243674 | 0.021234 | 0.378005 | 30 | 64 | 6 | 100 | ||||||||||||||||||||||||
Evolved U.S. Innovative Healthcare(a) | 0.197126 | 0.482790 | 0.012744 | 0.692660 | 28 | 70 | 2 | 100 | ||||||||||||||||||||||||
Evolved U.S. Media and Entertainment(a) | 0.122796 | 1.005765 | 0.026363 | 1.154924 | 11 | 87 | 2 | 100 | ||||||||||||||||||||||||
Evolved U.S. Technology(a) | 0.107490 | 0.051826 | 0.002780 | 0.162096 | 66 | 32 | 2 | 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 | 57 |
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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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”).
©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-715-0120
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 Trustees.
Item 11. Controls and Procedures.
(a)The President (the registrant's Principal Executive Officer) and Treasurer and Chief Financial Officer (the registrant's Principal Financial Officer) have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) are effective as of a date within 90 days of the filing date of this report, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the Investment Company Act of 1940 and Rules 13a-15(b) or 15d-15(b) under the Exchange Act of 1934.
(b)There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting.
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable to the registrant.
Item 13. Exhibits.
(a)(1) Not applicable to this semi-annual report.
(a)(2) Section 302 Certifications are attached.
(a)(3) Not applicable.
(a)(4) Not applicable.
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 U.S. ETF Trust
By: /s/ Armando Senra
Armando Senra, President (Principal Executive Officer)
Date: | April 06, 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: | April 06, 2020 |
By: /s/ Trent Walker
Trent Walker, Treasurer and Chief Financial Officer (Principal Financial Officer)
Date: | April 06, 2020 |