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iSHARES

Filed: 6 May 21, 7:23am

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM N-CSR

 

 

CERTIFIED SHAREHOLDER REPORT

OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-09102

 

 

iShares, Inc.

(Exact name of registrant as specified in charter)

 

 

c/o: State Street Bank and Trust Company

100 Summer Street, 4th Floor, Boston, MA 02110

(Address of principal executive offices) (Zip code)

 

 

The Corporation Trust Incorporated

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

(Name and address of agent for service)

 

 

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

Date of fiscal year end: August 31, 2021

Date of reporting period: February 28, 2021

 

 

 


Item 1 – Reports to Stockholders.

(a) The Report to Shareholders is attached herewith.


 

LOGO FEBRUARY 28, 2021

 

  

2021 Semi-Annual Report

(Unaudited)

 

iShares, Inc.

 

· 

iShares MSCI Austria ETF | EWO | NYSE Arca

· 

iShares MSCI Belgium ETF | EWK | NYSE Arca

· 

iShares MSCI France ETF | EWQ | NYSE Arca

· 

iShares MSCI Netherlands ETF | EWN | NYSE Arca

· 

iShares MSCI Sweden ETF | EWD | NYSE Arca

 


The Markets in Review

Dear Shareholder,

The 12-month reporting period as of February 28, 2021 reflected a remarkable period of disruption and adaptation, as the global economy dealt with the implications of the coronavirus (or “COVID-19”) pandemic. As the period began, the threat from the virus was becoming increasingly apparent, and countries around the world took economically disruptive countermeasures. Stay-at-home orders and closures of non-essential businesses became widespread, many workers were laid off, and unemployment claims spiked, causing a global recession and a sharp fall in equity prices.

After markets hit their lowest point of the reporting period in late March 2020, a steady recovery ensued, as businesses began to re-open and governments learned to adapt to life with the virus. Equity prices continued to rise throughout the summer, fed by strong fiscal and monetary support and improving economic indicators. Many equity indices neared or surpassed all-time highs late in the reporting period following the implementation of mass vaccination campaigns and progress of additional stimulus through the U.S. Congress. In the United States, both large- and small-capitalization stocks posted a significant advance. International equities also gained, as both developed countries and emerging markets rebounded substantially from lows in late March 2020.

During the market downturn, the performance of different types of fixed-income securities initially diverged due to a reduced investor appetite for risk. U.S. Treasuries benefited from the risk-off environment, as the 10-year U.S. Treasury yield (which is inversely related to bond prices) dropped to historic lows. However, inflation risk from a rapidly expanding economy raised yields late in the reporting period, leading to a negative overall return for most U.S. Treasuries. In the corporate bond market, support from the U.S. Federal Reserve (the “Fed”) assuaged credit concerns and both investment-grade and high-yield bonds recovered to post positive returns.

Following the coronavirus outbreak, the Fed instituted two emergency interest rate cuts, pushing short-term interest rates, already low as the year began, close to zero. To stabilize credit markets, the Fed also implemented a new bond-buying program, as did several other central banks around the world, including the European Central Bank and the Bank of Japan.

Looking ahead, while coronavirus-related disruptions have clearly hindered worldwide economic growth, we believe that the global expansion will continue to accelerate as vaccination efforts ramp up and pent-up consumer demand leads to higher spending. In early 2021, Congress passed one of the largest economic rescue packages in U.S. history, which should provide a solid tailwind for economic growth. Inflation is likely to increase somewhat as the expansion continues, but a shift in central bank policy means that moderate inflation is less likely to be followed by interest rate hikes that could threaten the equity expansion.

Overall, we favor a positive stance toward risk, with an overweight in equities. We see U.S. and Asian equities outside of Japan benefiting from structural growth trends in tech, while emerging markets should be particularly helped by a vaccine-led economic expansion. While we are neutral overall on credit, rising inflation should provide tailwinds for inflation-protected bonds, and global high-yield and Asian bonds also present attractive opportunities. We believe that international diversification and a focus on sustainability can help provide portfolio resilience, and the disruption created by the coronavirus appears to be accelerating the shift toward sustainable investments.

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

Sincerely,

 

 

LOGO

Rob Kapito

President, BlackRock, Inc.

LOGO

Rob Kapito

President, BlackRock, Inc.

 

Total Returns as of February 28, 2021

 

   6-Month 12-Month

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

 9.74% 31.29%

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

 41.69 51.00

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

 14.33 22.46

Emerging market equities
(MSCI Emerging Markets
Index)

 22.32 36.05

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

 0.06 0.40

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

 (6.34) (1.96)

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

 (1.55) 1.38

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

 0.92 1.22

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

 6.08 9.31
Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.
 

 

 

2 

THIS   PAGE   IS   NOT   PART   OF   YOUR   FUND   REPORT


Table of Contents

 

    Page 

The Markets in Review

   2 

Fund Summary

   4 

About Fund Performance

   9 

Shareholder Expenses

   9 

Schedules of Investments

   10 

Financial Statements

  

Statements of Assets and Liabilities

   26 

Statements of Operations

   28 

Statements of Changes in Net Assets

   30 

Financial Highlights

   33 

Notes to Financial Statements

   38 

Statement Regarding Liquidity Risk Management Program

   47 

Supplemental Information

   48 

General Information

   49 

Glossary of Terms Used in this Report

   50 

 

 

 


Fund Summary  as of February 28, 2021  iShares® MSCI Austria ETF

 

Investment Objective

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

Performance

 

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

Fund NAV

  37.71   20.29   11.20  1.87    20.29   70.00   20.33

Fund Market

  37.79    18.35    11.18   1.82     18.35    69.86    19.72 

Index

  38.41    20.08    11.31   1.98        20.08    70.89    21.72 

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

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

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 9 for more information.

Expense Example

 

Actual     Hypothetical 5% Return       
Beginning
Account Value
(09/01/20)
     Ending
Account Value
(02/28/21)
     Expenses
Paid During
the Period (a)
      Beginning
Account Value
(09/01/20)
     Ending
Account Value
(02/28/21)
     Expenses
Paid During
the Period (a)
     Annualized
Expense
Ratio
 
$1,000.00     $1,377.10     $2.95      $1,000.00     $1,022.30     $2.51      0.50

 

 (a) 

Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” on page 9 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

 

Sector Percent of
Total Investments(a)
 

Financials

  30.1

Materials

  15.5 

Energy

  14.1 

Industrials

  13.7 

Utilities

  11.1 

Real Estate

  10.1 

Communication Services

  2.7 

Information Technology

  1.8 

Consumer Staples

  0.9 

TEN LARGEST HOLDINGS

 

Security Percent of
Total Investments(a)
 

Erste Group Bank AG

  16.5

OMV AG

  12.6 

Verbund AG

  9.1 

Wienerberger AG

  6.8 

voestalpine AG

  4.8 

BAWAG Group AG

  4.6 

Raiffeisen Bank International AG

  4.5 

CA Immobilien Anlagen AG

  4.5 

ANDRITZ AG

  4.4 

Lenzing AG

  3.9 
 

 

 (a) 

Excludes money market funds.

 

 

 

4 2 0 2 1   I SHARES   SEMI - ANNUAL   REPORT   TO   SHAREHOLDERS


Fund Summary  as of February 28, 2021  iShares® MSCI Belgium ETF

 

Investment Objective

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

Performance

 

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

Fund NAV(a)

  15.32   22.35   6.74  7.00    22.35   38.55   96.77

Fund Market

  10.68    14.32    5.86   6.51     14.32    32.96    87.97 

Index

  10.27    17.02    5.77   7.34        17.02    32.37    103.07 

 

 (a) 

For financial reporting purposes, the net asset value (“NAV”) was adjusted as of the report date due to the settlement of a litigation. Accordingly, the NAV per share presented herein is different than the information previously published as of February 26, 2021.

 

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

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 9 for more information.

Expense Example

 

Actual

     

Hypothetical 5% Return

       

Beginning

Account Value

(09/01/20)

     

Ending

Account Value

(02/28/21)

     

Expenses

Paid During

the Period (a)

      

Beginning

Account Value

(09/01/20)

     

Ending

Account Value

(02/28/21)

     

Expenses

Paid During

the Period (a)

     

Annualized

Expense

Ratio

 
$1,000.00     $1,101.50     $2.61      $1,000.00     $1,022.30     $2.51      0.50

 

 (a) 

Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” on page 9 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

 

 

Sector

 

Percent of

Total Investments(a)

 

Financials

  25.0

Consumer Staples

  23.2 

Health Care

  17.7 

Materials

  11.6 

Real Estate

  9.8 

Communication Services

  3.9 

Information Technology

  2.9 

Utilities

  1.9 

Consumer Discretionary

  1.8 

Industrials

  1.3 

Energy

  0.9 

TEN LARGEST HOLDINGS

 

Security

 

Percent of

Total Investments(a)

 

Anheuser-Busch InBev SA/NV

  20.9

KBC Group NV

  9.1 

Argenx SE

  7.0 

UCB SA

  6.4 

Solvay SA

  4.9 

Umicore SA

  4.7 

Ageas SA/NV

  4.7 

Groupe Bruxelles Lambert SA

  4.5 

Sofina SA

  2.8 

Warehouses De Pauw CVA

  2.5 
 

 

 (a) 

Excludes money market funds.

 

 

 

FUND   SUMMARY

 5


Fund Summary  as of February 28, 2021  iShares® MSCI France ETF

 

Investment Objective

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

Performance

 

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

Fund NAV

  16.68   20.08   10.71  4.99   20.08   66.30   62.79

Fund Market

  16.33    18.10    10.79   4.95    18.10    66.91    62.10 

Index

  16.88    20.28    10.68   4.97       20.28    66.09    62.41 

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 9 for more information.

Expense Example

 

Actual     Hypothetical 5% Return       

Beginning

Account Value

(09/01/20)

     

Ending

Account Value

(02/28/21)

     

Expenses

Paid During

the Period (a)

      

Beginning

Account Value

(09/01/20)

  

Ending

Account Value

(02/28/21)

     

Expenses

Paid During

the Period (a)

     

Annualized

Expense

Ratio

 
$1,000.00     $1,166.80     $2.69      $1,000.00  $1,022.30     $2.51      0.50

 

 (a) 

Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” on page 9 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

 

Sector 

Percent of

Total Investments(a)

 

Industrials

  21.6

Consumer Discretionary

  21.3 

Consumer Staples

  10.8 

Financials

  10.0 

Health Care

  8.1 

Information Technology

  6.9 

Energy

  6.6 

Materials

  5.4 

Communication Services

  4.7 

Utilities

  3.2 

Real Estate

  1.4 

TEN LARGEST HOLDINGS

 

Security 

Percent of

Total Investments(a)

 

LVMH Moet Hennessy Louis Vuitton SE

  10.0

TOTAL SE

  6.6 

Sanofi

  5.9 

L’Oreal SA

  5.2 

Schneider Electric SE

  4.5 

Air Liquide SA

  4.1 

Airbus SE

  3.9 

BNP Paribas SA

  3.8 

Vinci SA

  3.1 

AXA SA

  2.8 
 

 

 (a) 

Excludes money market funds.

 

 

 

6 2 0 2 1   I SHARES   SEMI - ANNUAL   REPORT   TO   SHAREHOLDERS


Fund Summary  as of February 28, 2021  iShares® MSCI Netherlands ETF

 

Investment Objective

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

Performance

 

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

Fund NAV

  25.05   47.59   16.41  9.30   47.59   113.80   143.37

Fund Market

  24.97    46.15    16.53   9.28    46.15    114.90    142.81 

Index

  25.31    48.34    16.99   9.70       48.34    119.13    152.39 

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

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

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 9 for more information.

Expense Example

 

Actual     Hypothetical 5% Return       
Beginning
Account Value
(09/01/20)
     Ending
Account Value
(02/28/21)
     Expenses
Paid During
the Period (a)
      Beginning
Account Value
(09/01/20)
  Ending
Account Value
(02/28/21)
     Expenses
Paid During
the Period (a)
     Annualized
Expense
Ratio
 
$1,000.00     $1,250.50     $2.79      $1,000.00  $1,022.30     $2.51      0.50

 

 (a) 

Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” on page 9 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

 

Sector Percent of
Total Investments (a)
 

Information Technology

  31.4

Industrials

  12.7 

Consumer Staples

  11.6 

Consumer Discretionary

  11.5 

Financials

  11.3 

Materials

  9.1 

Health Care

  7.4 

Communication Services

  1.9 

Energy

  1.8 

Real Estate

  1.3 

TEN LARGEST HOLDINGS

 

Security Percent of
Total Investments (a)
 

ASML Holding NV

  22.1

Prosus NV

  8.2 

Koninklijke Philips NV

  7.1 

Adyen NV

  6.0 

ING Groep NV

  4.8 

Koninklijke Ahold Delhaize NV

  4.2 

Koninklijke DSM NV

  4.2 

Heineken NV

  3.3 

Akzo Nobel NV

  3.3 

Wolters Kluwer NV

  3.2 
 

 

 (a) 

Excludes money market funds.

 

 

 

FUND   SUMMARY

 7


Fund Summary  as of February 28, 2021  iShares® MSCI Sweden ETF

 

Investment Objective

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

Performance

 

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

Fund NAV

  18.87   41.97   12.70  6.47   41.97   81.82   87.20

Fund Market

  18.62    38.92    12.70   6.46    38.92    81.78    86.98 

Index

  18.97    42.13    12.17   6.04       42.13    77.60    79.78 

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

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

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 9 for more information.

Expense Example

 

Actual     Hypothetical 5% Return       
Beginning
Account Value
(09/01/20)
     Ending
Account Value
(02/28/21)
     Expenses
Paid During
the Period (a)
      Beginning
Account Value
(09/01/20)
  Ending
Account Value
(02/28/21)
     Expenses
Paid During
the Period (a)
     Annualized
Expense
Ratio
 
$1,000.00     $1,188.70     $2.82      $1,000.00  $1,022.20     $2.61      0.52

 

 (a) 

Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” on page 9 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

 

Sector Percent of
Total Investments(a)
 

Industrials

  39.3

Financials

  26.4 

Information Technology

  10.8 

Consumer Discretionary

  8.7 

Consumer Staples

  6.4 

Materials

  3.5 

Communication Services

  3.1 

Energy

  1.2 

Real Estate

  0.6 

TEN LARGEST HOLDINGS

 

Security Percent of
Total Investments(a)
 

Atlas Copco AB, Class A

  6.9

Volvo AB, Class B

  6.6 

Telefonaktiebolaget LM Ericsson, Class B

  6.6 

Investor AB, Class B

  6.1 

Nordea Bank Abp

  5.3 

Sandvik AB

  5.2 

Assa Abloy AB, Class B

  4.6 

Hexagon AB, Class B

  4.2 

Hennes & Mauritz AB, Class B

  3.6 

Skandinaviska Enskilda Banken AB, Class A

  3.5 
 

 

 (a) 

Excludes money market funds.

 
  

 

 

8 2 0 2 1   I SHARES   SEMI - ANNUAL   REPORT   TO   SHAREHOLDERS


About Fund Performance

 

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

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

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

Shareholder Expenses

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

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

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

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

 

 

ABOUT   FUND   PERFORMANCE

 9


Schedule of Investments  (unaudited) 

February 28, 2021

  

iShares® MSCI Austria ETF

(Percentages shown are based on Net Assets)

 

Security Shares  Value 

Common Stocks

  

Aerospace & Defense — 0.8%

  

FACC AG(a)(b)

  43,313  $438,987 
  

 

 

 
Air Freight & Logistics — 2.9%      

Oesterreichische Post AG(b)

  40,054   1,623,826 
  

 

 

 
Banks — 25.2%      

BAWAG Group AG(a)(c)

  49,176   2,569,050 

Erste Group Bank AG(a)

  278,105   9,212,117 

Raiffeisen Bank International AG(a)

  123,303   2,517,368 
  

 

 

 
   14,298,535 
Chemicals — 3.9%      

Lenzing AG(a)

  15,223   2,195,148 
  

 

 

 
Commercial Services & Supplies — 1.5%      

DO & CO AG(a)(b)

  10,702   836,562 
  

 

 

 
Construction & Engineering — 0.8%      

Porr AG(a)(b)

  25,857   480,194 
  

 

 

 
Construction Materials — 6.7%      

Wienerberger AG

  112,370   3,775,405 
  

 

 

 
Diversified Telecommunication Services — 2.6% 

Telekom Austria AG

  195,963   1,496,139 
  

 

 

 
Electric Utilities — 10.9%      

EVN AG

  48,657   1,063,077 

Verbund AG

  66,565   5,106,345 
  

 

 

 
   6,169,422 
Electrical Equipment — 0.8%      

Zumtobel Group AG

  61,766   445,331 
  

 

 

 
Electronic Equipment, Instruments & Components — 1.8%      

AT&S Austria Technologie & Systemtechnik AG

  34,871   1,032,765 
  

 

 

 
Energy Equipment & Services — 1.5%      

Schoeller-Bleckmann Oilfield Equipment AG

  17,858   846,449 
  

 

 

 
Food Products — 0.9%      

Agrana Beteiligungs AG

  23,928   511,171 
  

 

 

 
Insurance — 4.4%      

UNIQA Insurance Group AG

  154,478   1,203,784 

Vienna Insurance Group AG Wiener Versicherung Gruppe

  47,616   1,285,968 
  

 

 

 
   2,489,752 
Security Shares   Value 
Machinery — 6.8%       

ANDRITZ AG

  51,100   $2,463,640 

Palfinger AG

  20,531    772,536 

Semperit AG Holding(a)

  19,471    606,210 
   

 

 

 
    3,842,386 
Metals & Mining — 4.7%       

voestalpine AG

  66,837    2,664,202 
   

 

 

 
Oil, Gas & Consumable Fuels — 12.4%       

OMV AG

  144,856    7,008,433 
   

 

 

 
Real Estate Management & Development — 10.0% 

CA Immobilien Anlagen AG

  58,136    2,508,603 

IMMOFINANZ AG(a)

  98,012    1,976,041 

S IMMO AG

  55,294    1,170,500 
   

 

 

 
    5,655,144 
   

 

 

 
Total Common Stocks — 98.6%       

(Cost: $61,148,066)

    55,809,851 
   

 

 

 

Short-Term Investments

   
Money Market Funds — 5.7%       

BlackRock Cash Funds: Institutional, SL Agency Shares, 0.12%(d)(e)(f)

  3,229,610    3,231,548 

BlackRock Cash Funds: Treasury, SL Agency Shares, 0.00%(d)(e)

  20,000    20,000 
   

 

 

 
    3,251,548 
   

 

 

 

Total Short-Term Investments — 5.7%

   

(Cost: $3,251,187)

    3,251,548 
   

 

 

 

Total Investments in Securities — 104.3%

   

(Cost: $64,399,253)

    59,061,399 

Other Assets, Less Liabilities — (4.3)%

    (2,455,889
   

 

 

 

Net Assets — 100.0%

   $56,605,510 
   

 

 

 

 

(a) 

Non-income producing security.

(b) 

All or a portion of this security is on loan.

(c) 

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

(d) 

Affiliate of the Fund.

(e) 

Annualized 7-day yield as of period-end.

(f) 

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

 

 

 

10 2 0 2 1   I SHARES   SEMI - ANNUAL   REPORT   TO   SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

February 28, 2021    

  iShares® MSCI Austria ETF

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended February 28, 2021 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliated Issuer  Value at
08/31/20
   Purchases
at Cost
   Proceeds
from Sales
   Net Realized
Gain (Loss)
   Change in
Unrealized
Appreciation
(Depreciation)
   Value at
02/28/21
   Shares
Held at
02/28/21
   Income   Capital Gain
Distributions
from
Underlying
Funds
 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $2,925,304   $307,508(a)   $   $(1,688  $424   $3,231,548    3,229,610   $75,154(b)   $ 

BlackRock Cash Funds: Treasury, SL Agency Shares.

   10,000    10,000(a)                 20,000    20,000    5     
        

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $(1,688  $424   $3,251,548     $75,159   $ 
        

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

 (a) 

Represents net amount purchased (sold).

 
 (b) 

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

 

Futures Contracts

 

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

Long Contracts

        

Euro STOXX 50 Index

   17    03/19/21   $748   $24,670 
        

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

As of February 28, 2021, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

    Equity
Contracts
 

Assets — Derivative Financial Instruments

  

Futures contracts

  

Unrealized appreciation on futures contracts(a)

  $24,670 
  

 

 

 

 

 (a) 

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

 

For the six months ended February 28, 2021, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

    Equity
Contracts
 

Net Realized Gain (Loss) from:

  

Futures contracts

  $ 202,951 
  

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

  

Futures contracts

  $6,609 
  

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

     

Average notional value of contracts — long

  $1,247,199 

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

Fair Value Measurements

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

 

 

SCHEDULE   OF   INVESTMENTS

 11


Schedule of Investments  (unaudited) (continued)

February 28, 2021

  

iShares® MSCI Austria ETF

 

Fair Value Measurements (continued)

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2021. 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

  $55,809,851     $     $     $55,809,851 

Money Market Funds

   3,251,548                  3,251,548 
  

 

 

     

 

 

     

 

 

     

 

 

 
  $59,061,399     $     $     $59,061,399 
  

 

 

     

 

 

     

 

 

     

 

 

 

Derivative financial instruments(a)

              

Assets

              

Futures Contracts

  $24,670     $     $     $24,670 
  

 

 

     

 

 

     

 

 

     

 

 

 

 

 (a) 

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

 

See notes to financial statements.

 

 

12 2 0 2 1   I SHARES   SEMI - ANNUAL   REPORT   TO   SHAREHOLDERS


Schedule of Investments  (unaudited)

February 28, 2021

  

iShares® MSCI Belgium ETF

(Percentages shown are based on Net Assets)

 

Security Shares  Value 

Common Stocks

  
Air Freight & Logistics — 0.7%      

bpost SA(a)

  23,051  $251,114 
  

 

 

 
Banks — 8.7%      

KBC Group NV(a)

  44,812   3,242,899 
  

 

 

 
Beverages — 19.8%      

Anheuser-Busch InBev SA/NV

  128,518   7,403,529 
  

 

 

 
Biotechnology — 8.5%      

Argenx SE(a)

  7,411   2,497,143 

Galapagos NV(a)

  8,120   672,774 
  

 

 

 
   3,169,917 
Capital Markets — 0.7%      

Gimv NV

  4,359   256,611 
  

 

 

 
Chemicals — 10.2%      

Recticel SA

  11,468   177,339 

Solvay SA

  14,136   1,734,702 

Tessenderlo Group SA(a)

  4,661   208,197 

Umicore SA

  28,538   1,685,554 
  

 

 

 
   3,805,792 
Construction & Engineering — 0.6%      

Cie. d’Entreprises CFE(a)

  2,117   228,182 
  

 

 

 
Distributors — 1.1%      

D’ieteren SA/NV

  4,909   417,694 
  

 

 

 
Diversified Financial Services — 9.9%      

Ackermans & van Haaren NV

  4,652   754,385 

Groupe Bruxelles Lambert SA

  16,034   1,599,003 

KBC Ancora(a)

  8,479   340,865 

Sofina SA

  2,992   996,899 
  

 

 

 
   3,691,152 
Diversified Telecommunication Services — 1.6%      

Proximus SADP

  30,216   594,154 
  

 

 

 
Electric Utilities — 1.8%      

Elia Group SA/NV

  6,118   665,372 
  

 

 

 
Electronic Equipment, Instruments & Components — 1.0%      

Barco NV

  14,997   370,256 
  

 

 

 
Entertainment — 0.5%      

Kinepolis Group NV(a)(b)

  3,798   195,004 
  

 

 

 
Equity Real Estate Investment Trusts (REITs) — 9.3%      

Aedifica SA

  6,451   806,513 

Befimmo SA

  5,249   214,392 

Cofinimmo SA

  4,900   763,674 

Intervest Offices & Warehouses NV

  5,556   144,656 

Montea C.V.A

  2,292   259,285 

Retail Estates NV

  2,561   195,838 

Warehouses De Pauw CVA

  25,484   876,627 

Xior Student Housing NV

  3,590   200,665 
  

 

 

 
   3,461,650 
Food & Staples Retailing — 1.8%      

Etablissements Franz Colruyt NV

  10,914   657,602 
  

 

 

 
Health Care Equipment & Supplies — 0.6%      

Biocartis Group NV(a)(b)(c)

  17,381   93,038 
Security Shares  Value 
Health Care Equipment & Supplies (continued)      

Ion Beam Applications

  8,199  $141,318 
  

 

 

 
   234,356 
Health Care Providers & Services — 0.8%      

Fagron

  13,386   321,221 
  

 

 

 
Health Care Technology — 0.4%      

AGFA-Gevaert NV(a)

  37,679   170,133 
  

 

 

 
Insurance — 4.5%      

Ageas SA/NV

  29,651   1,672,113 
  

 

 

 
IT Services — 0.4%      

Econocom Group SA/NV

  39,087   145,890 
  

 

 

 
Media — 1.0%      

Telenet Group Holding NV

  9,519   381,749 
  

 

 

 
Metals & Mining — 0.9%      

Bekaert SA

  8,761   324,340 
  

 

 

 
Oil, Gas & Consumable Fuels — 0.9%      

Euronav NV

  37,284   332,627 
  

 

 

 
Personal Products — 0.4%      

Ontex Group NV(a)(b)

  15,562   160,936 
  

 

 

 
Pharmaceuticals — 6.4%      

Mithra Pharmaceuticals SA(a)(b)

  5,147   128,697 

UCB SA

  22,539   2,255,380 
  

 

 

 
   2,384,077 
Semiconductors & Semiconductor Equipment — 1.4%      

Melexis NV

  4,294   510,782 
  

 

 

 
Textiles, Apparel & Luxury Goods — 0.5%      

Sioen Industries NV(a)

  3,644��  118,539 

Van de Velde NV

  3,207   87,195 
  

 

 

 
   205,734 
Wireless Telecommunication Services — 0.6%      

Orange Belgium SA

  8,228   227,707 
  

 

 

 

Total Common Stocks — 95.0%
(Cost: $40,245,271)

   35,482,593 
  

 

 

 

Rights

  
Equity Real Estate Investment Trusts (REITs) — 0.0%      

Xior Student Housing NV, (Expires 03/04/21)(a)

  3,590   2,614 
  

 

 

 

Total Rights — 0.0% (Cost: $0)

   2,614 

Short-Term Investments

  
Money Market Funds — 1.1%      

BlackRock Cash Funds: Institutional, SL Agency Shares,

  

0.12%(d)(e)(f)

  392,524   392,760 

BlackRock Cash Funds: Treasury, SL Agency Shares,

  

0.00%(d)(e)

  10,000  $10,000 
  

 

 

 
   402,760 
  

 

 

 

Total Short-Term Investments — 1.1%
(Cost: $402,715)

   402,760 
  

 

 

 

Total Investments in Securities — 96.1%
(Cost: $40,647,986)

   35,887,967 

Other Assets, Less Liabilities — 3.9%

   1,465,090 
  

 

 

 

Net Assets — 100.0%

  $37,353,057 
  

 

 

 
 

 

 

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

 13


Schedule of Investments  (unaudited) (continued)

February 28, 2021

  

iShares® MSCI Belgium ETF

(Percentages shown are based on Net Assets)

 

(a) 

Non-income producing security.

(b) 

All or a portion of this security is on loan.

(c) 

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

(d) 

Affiliate of the Fund.

(e) 

Annualized 7-day yield as of period-end.

(f) 

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

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended February 28, 2021 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliated Issuer  Value at
08/31/20
   Purchases
at Cost
   Proceeds
from
Sales
   Net Realized
Gain (Loss)
   Change in
Unrealized
Appreciation
(Depreciation)
   Value at
02/28/21
   Shares
Held at
02/28/21
   Income
   Capital Gain
Distributions
from
Underlying
Funds
 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $1,341,323   $   $(948,130)(a)   $(528  $95   $392,760    392,524   $8,806(b)   $ 

BlackRock Cash Funds: Treasury, SL Agency Shares

   10,000        0(a)            10,000    10,000    5     
        

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $(528  $95   $402,760     $8,811   $ 
        

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

 (a) 

Represents net amount purchased (sold).

 
 (b) 

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

 

Futures Contracts

 

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

Long Contracts

        

Euro STOXX 50 Index

   41    03/19/21   $1,805   $(10,796
        

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

As of February 28, 2021, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:    

 

    Equity
Contracts
 

Liabilities — Derivative Financial Instruments

  

Futures contracts

  

Unrealized depreciation on futures contracts(a)

  $10,796 
  

 

 

 

 

 (a) 

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

 

 

 

14 2 0 2 1   I SHARES   SEMI - ANNUAL   REPORT   TO   SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

February 28, 2021

  

iShares® MSCI Belgium ETF

 

For the six months ended February 28, 2021, the effect of derivative financial instruments in the Statements of Operations was as follows:    

 

    Equity
Contracts
 

Net Realized Gain (Loss) from:

  

Futures contracts

  $15,643 
  

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

  

Futures contracts

  $(10,053
  

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

     

Average notional value of contracts — long

  $668,667 

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

Fair Value Measurements

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

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2021. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.

 

    Level 1     Level 2     Level 3     Total 

Investments

              

Assets

              

Common Stocks

  $35,482,593     $     $     $35,482,593 

Rights

   2,614                  2,614 

Money Market Funds

   402,760                  402,760 
  

 

 

     

 

 

     

 

 

     

 

 

 
  $35,887,967     $     $     $35,887,967 
  

 

 

     

 

 

     

 

 

     

 

 

 

Derivative financial instruments(a)

              

Liabilities

              

Futures Contracts

  $(10,796    $     $     $(10,796
  

 

 

     

 

 

     

 

 

     

 

 

 

 

 (a)

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

 

See notes to financial statements.

 

 

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) 

February 28, 2021

  

iShares® MSCI France ETF

(Percentages shown are based on Net Assets)

 

Security Shares  Value 

Common Stocks

  
Aerospace & Defense — 7.1%      

Airbus SE(a)

  252,911  $29,442,774 

Dassault Aviation SA(a)

  1,082   1,172,805 

Safran SA(a)

  138,003   18,970,285 

Thales SA

  45,947   4,374,635 
  

 

 

 
   53,960,499 
Auto Components — 2.1%      

Cie. Generale des Etablissements Michelin SCA

  72,818   10,584,282 

Faurecia SE(a)

  35,510   1,845,198 

Valeo SA

  99,003   3,513,766 
  

 

 

 
   15,943,246 
Automobiles — 0.5%      

Renault SA(a)

  82,782   3,730,349 
  

 

 

 

Banks — 5.9%

  

BNP Paribas SA(a)

  484,414   28,972,797 

Credit Agricole SA(a)

  496,934   7,005,918 

Societe Generale SA(a)

  349,139   8,702,423 
  

 

 

 
   44,681,138 
Beverages — 2.5%      

Pernod Ricard SA

  90,229   17,232,965 

Remy Cointreau SA

  9,727   1,865,448 
  

 

 

 
   19,098,413 
Building Products — 1.5%      

Cie. de Saint-Gobain(a)

  219,002   11,807,929 
  

 

 

 
Capital Markets — 0.5%      

Amundi SA(a)(b)

  25,951   1,984,457 

Natixis SA(a)

  407,746   1,997,506 
  

 

 

 
   3,981,963 
Chemicals — 4.5%      

Air Liquide SA

  203,928   30,866,716 

Arkema SA

  29,748   3,303,893 
  

 

 

 
   34,170,609 
Construction & Engineering — 4.1%      

Bouygues SA

  97,666   3,978,437 

Eiffage SA(a)

  35,848   3,705,507 

Vinci SA

  224,182   23,412,525 
  

 

 

 
   31,096,469 
Diversified Financial Services — 0.3%      

Eurazeo SE(a)

  16,846   1,254,465 

Wendel SE

  11,608   1,334,303 
  

 

 

 
   2,588,768 
Diversified Telecommunication Services — 1.5%      

Iliad SA

  6,393   1,137,590 

Orange SA

  859,185   9,957,406 
  

 

 

 
   11,094,996 
Electric Utilities — 0.4%      

Electricite de France SA(a)

  267,669   3,219,076 
  

 

 

 
Electrical Equipment — 5.9%      

Legrand SA

  114,997   10,038,835 

Schneider Electric SE

  231,756   34,558,370 
  

 

 

 
   44,597,205 
Entertainment — 2.3%      

Bollore SA

  379,601   1,827,373 

Ubisoft Entertainment SA(a)

  39,434   3,234,715 
Security Shares  Value 
Entertainment (continued)      

Vivendi SE

  357,396  $12,393,873 
  

 

 

 
   17,455,961 
Equity Real Estate Investment Trusts (REITs) — 1.4%      

Covivio

  22,239   1,880,111 

Gecina SA

  19,747   2,749,234 

Klepierre SA

  84,352   2,001,655 

Unibail-Rodamco-Westfield

  59,791   4,413,969 
  

 

 

 
   11,044,969 
Food & Staples Retailing — 0.6%      

Carrefour SA

  264,098   4,630,520 
  

 

 

 
Food Products — 2.4%      

Danone SA

  266,134   18,238,468 
  

 

 

 
Health Care Equipment & Supplies — 0.3%      

BioMerieux

  17,911   2,287,087 
  

 

 

 
Health Care Providers & Services — 0.4%      

Orpea SA(a)

  22,402   2,705,015 
  

 

 

 
Hotels, Restaurants & Leisure — 1.1%      

Accor SA(a)

  78,378   3,287,873 

La Francaise des Jeux SAEM(b)

  36,773   1,668,905 

Sodexo SA(a)

  38,201   3,673,302 
  

 

 

 
   8,630,080 
Household Durables — 0.2%      

SEB SA

  9,751   1,759,978 
  

 

 

 
Insurance — 3.2%      

AXA SA

  832,977   21,030,202 

CNP Assurances(a)

  74,181   1,342,510 

SCOR SE(a)

  67,839   2,262,785 
  

 

 

 
   24,635,497 
IT Services — 3.9%      

Atos SE(a)

  42,638   3,344,344 

Capgemini SE

  69,337   11,206,070 

Edenred

  106,195   5,915,197 

Worldline SA(a)(b)

  102,082   9,144,346 
  

 

 

 
   29,609,957 
Life Sciences Tools & Services — 1.4%      

Eurofins Scientific SE(a)

  57,110   5,104,733 

Sartorius Stedim Biotech

  11,938   5,245,505 
  

 

 

 
   10,350,238 
Machinery — 0.8%      

Alstom SA(a)

  114,259   5,733,344 
  

 

 

 

Media — 0.9%

  

Publicis Groupe SA

  95,956   5,653,521 

SES SA

  164,057   1,317,460 
  

 

 

 
   6,970,981 
Metals & Mining — 1.0%      

ArcelorMittal SA(a)

  308,710   7,253,678 
  

 

 

 
Multi-Utilities — 2.7%      

Engie SA(a)

  786,583   11,538,207 

Suez SA

  148,874   3,117,131 

Veolia Environnement SA

  232,085   6,296,101 
  

 

 

 
   20,951,439 
Oil, Gas & Consumable Fuels — 6.6%      

TOTAL SE

  1,084,607   50,520,530 
  

 

 

 
 

 

 

16 2 0 2 1   I SHARES   SEMI - ANNUAL   REPORT   TO   SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

February 28, 2021

  

iShares® MSCI France ETF

(Percentages shown are based on Net Assets)

 

Security Shares   Value 

Personal Products — 5.2%

   

L’Oreal SA

  108,393   $39,838,614 
Pharmaceuticals — 6.1%       

Ipsen SA

  16,240    1,392,661 

Sanofi

  487,558    44,858,278 
   

 

 

 
    46,250,939 
Professional Services — 1.6%       

Bureau Veritas SA(a)

  126,515    3,438,296 

Teleperformance

  25,300    9,000,848 
   

 

 

 
    12,439,144 
Semiconductors & Semiconductor Equipment — 1.4%       

STMicroelectronics NV

  274,506    10,652,256 
   

 

 

 
Software — 1.6%       

Dassault Systemes SE

  56,902    11,872,728 
   

 

 

 
Textiles, Apparel & Luxury Goods — 17.4%       

EssilorLuxottica SA

  122,492    20,071,905 

Hermes International

  13,611    15,252,216 

Kering SA

  32,633    20,791,254 

LVMH Moet Hennessy Louis Vuitton SE

  119,471    76,132,293 
   

 

 

 
    132,247,668 
Transportation Infrastructure — 0.6%       

Aeroports de Paris(a)

  12,794    1,633,688 

Getlink SE(a)

  189,498    3,121,272 
   

 

 

 
    4,754,960 
Total Common Stocks — 99.9%       

(Cost: $800,493,150)

    760,804,711 
   

 

 

 
Security Shares   Value 

Short-Term Investments

   
Money Market Funds — 0.0%       

BlackRock Cash Funds: Treasury, SL Agency Shares, 0.00%(c)(d)

  260,000   $260,000 
   

 

 

 
Total Short-Term Investments — 0.0%       
    (Cost: $260,000)     260,000 
   

 

 

 
Total Investments in Securities — 99.9%       
    (Cost: $800,753,150)     761,064,711 
Other Assets, Less Liabilities — 0.1%     872,204 
   

 

 

 

Net Assets — 100.0%

   $761,936,915 
   

 

 

 

 

(a) 

Non-income producing security.

(b) 

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

(c) 

Affiliate of the Fund.

(d) 

Annualized 7-day yield as of period-end.

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended February 28, 2021 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliated Issuer Value at
08/31/20
  Purchases
at Cost
  Proceeds
from Sales
  Net Realized
Gain (Loss)
  Change in
Unrealized
Appreciation
(Depreciation)
  Value at
02/28/21
  Shares
Held at
02/28/21
  Income  Capital Gain
Distributions
from
Underlying
Funds
 

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

 $8,568,912  $  $
 
(8,564,588
)(b) 
 
 $(5,094 $
 
 
770
 
 
 $     $
 
102,158
(c) 
 
 $
 
 
 
 

BlackRock Cash Funds: Treasury, SL Agency Shares

  529,000      (269,000)(b)          260,000   260,000   164    
    

 

 

  

 

 

  

 

 

   

 

 

  

 

 

 
    $(5,094 $770  $260,000   $102,322  $ 
    

 

 

  

 

 

  

 

 

   

 

 

  

 

 

 

 

 (a) 

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

 
 (b) 

Represents net amount purchased (sold).

 
 (c) 

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

 

 

 

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

 17


Schedule of Investments  (unaudited) (continued)

February 28, 2021

  

iShares® MSCI France ETF

 

Futures Contracts    

 

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

CAC 40 Index

   14    03/19/21   $968  $(13,062
        

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure    

As of February 28, 2021, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:    

 

    Equity
Contracts
 

Liabilities — Derivative Financial Instruments

  

Futures contracts

  

Unrealized depreciation on futures contracts(a)

  $13,062 
  

 

 

 

 

 (a)

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

 

For the six months ended February 28, 2021, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

    Equity
Contracts
 

Net Realized Gain (Loss) from:

  

Futures contracts

  $356,610 
  

 

 

 
Net Change in Unrealized Appreciation (Depreciation) on:    

Futures contracts. . . . . . . . . . . .

  $(4,520
  

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

     

Average notional value of contracts — long

  $1,151,678 

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

Fair Value Measurements

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

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2021. 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

  $760,804,711     $     $     $760,804,711 

Money Market Funds

   260,000                  260,000 
  

 

 

     

 

 

     

 

 

     

 

 

 
  $761,064,711     $     $     $761,064,711 
  

 

 

     

 

 

     

 

 

     

 

 

 

Derivative financial instruments(a)

              

Liabilities

              

Futures Contracts

  $(13,062    $     $      $ (13,062) 
  

 

 

     

 

 

     

 

 

     

 

 

 

 

 (a)

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

 

See notes to financial statements.

 

 

18 2 0 2 1   I SHARES   SEMI - ANNUAL   REPORT   TO   SHAREHOLDERS


Schedule of Investments  (unaudited) 

February 28, 2021

  

iShares® MSCI Netherlands ETF

(Percentages shown are based on Net Assets)

 

Security Shares  Value 

Common Stocks

  
Air Freight & Logistics — 0.6%      

PostNL NV(a)

  435,152  $1,860,804 
  

 

 

 
Banks — 6.1%      

ABN AMRO Bank NV, CVA(a)(b)

  250,368   2,893,096 

ING Groep NV

  1,354,840   14,864,678 

Van Lanschot Kempen NV(a)

  44,714   1,164,174 
  

 

 

 
   18,921,948 
Beverages — 6.2%      

Coca-Cola European Partners PLC

  104,287   5,313,423 

Heineken Holding NV

  42,052   3,634,241 

Heineken NV

  103,801   10,293,681 
  

 

 

 
   19,241,345 
Biotechnology — 0.4%      

Pharming Group NV(a)(c)

  836,301   1,116,612 
  

 

 

 
Capital Markets — 0.4%      

Flow Traders(b)

  33,941   1,391,654 
  

 

 

 
Chemicals — 8.7%      

Akzo Nobel NV

  97,591   10,135,091 

Corbion NV

  37,814   2,161,825 

Koninklijke DSM NV

  77,256   12,804,748 

OCI NV(a)

  79,354   1,714,494 
  

 

 

 
   26,816,158 
Construction & Engineering — 1.6%      

Arcadis NV(a)

  54,236   1,859,086 

Boskalis Westminster(a)

  58,989   1,824,389 

Koninklijke BAM Groep NV(a)

  438,467   1,183,638 
  

 

 

 
   4,867,113 
Distributors — 0.2%      

B&S Group Sarl(a)(b)

  49,840   494,856 
  

 

 

 
Diversified Financial Services — 0.0%      

SNS REAAL NV(a)(c)(d)

  68,952   1 
  

 

 

 
Diversified Telecommunication Services — 1.9%      

Koninklijke KPN NV

  1,742,655   5,728,055 
  

 

 

 
Electrical Equipment — 2.1%      

Alfen Beheer BV(a)(b)

  16,954   1,446,687 

SIF Holding NV(a)

  21,560   412,432 

Signify NV(a)(b)

  71,975   3,149,445 

TKH Group NV

  32,371   1,623,542 
  

 

 

 
   6,632,106 
Energy Equipment & Services — 1.1%      

Fugro NV(a)

  138,978   1,481,955 

SBM Offshore NV

  106,723   1,902,300 
  

 

 

 
   3,384,255 
Equity Real Estate Investment Trusts (REITs) — 1.3%      

Eurocommercial Properties NV(a)

  58,694   1,253,873 

NSI NV

  28,358   1,149,659 

Vastned Retail NV

  20,913   615,567 

Wereldhave NV(a)(c)

  57,815   974,041 
  

 

 

 
   3,993,140 
Food & Staples Retailing — 4.6%      

Koninklijke Ahold Delhaize NV

  492,877   13,065,869 

Sligro Food Group NV(a)

  44,910   1,079,333 
  

 

 

 
   14,145,202 
Security Shares  $ Value 
Food Products — 0.8%      

ForFarmers NV

  56,377  $373,630 

JDE Peet’s NV(a)

  52,029   2,125,092 
  

 

 

 
   2,498,722 
Health Care Equipment & Supplies — 7.1%      

Koninklijke Philips NV(a)

  398,969   21,770,292 
  

 

 

 
Hotels, Restaurants & Leisure — 0.5%      

Basic-Fit NV(a)(b)

  36,985   1,582,457 
  

 

 

 
Household Durables — 0.3%      

TomTom NV(a)

  110,556   1,044,020 
  

 

 

 
Insurance — 4.7%      

Aegon NV

  924,974   4,441,533 

ASR Nederland NV

  78,688   3,304,698 

NN Group NV

  143,261   6,642,605 
  

 

 

 
   14,388,836 
Internet & Direct Marketing Retail — 10.1%      

Just Eat Takeaway.com NV(a)(b)

  60,800   5,895,067 

Prosus NV

  212,185   25,255,367 
  

 

 

 
   31,150,434 
IT Services — 6.0%      

Adyen NV(a)(b)

  7,988   18,577,218 
  

 

 

 
Leisure Products — 0.3%      

Accell Group NV(a)

  29,109   1,081,175 
  

 

 

 
Machinery — 0.9%      

Aalberts NV

  57,674   2,704,982 
  

 

 

 
Metals & Mining — 0.4%      

AMG Advanced Metallurgical Group NV

  35,621   1,307,912 
  

 

 

 
Oil, Gas & Consumable Fuels — 0.7%      

Koninklijke Vopak NV

  43,935   2,107,001 
  

 

 

 
Professional Services — 5.1%      

Brunel International NV(a)

  38,515   421,681 

Intertrust NV(a)(b)

  85,590   1,402,503 

Randstad NV(a)

  62,368   4,189,364 

Wolters Kluwer NV

  122,199   9,741,995 
  

 

 

 
   15,755,543 
Semiconductors & Semiconductor Equipment — 25.2%      

ASM International NV

  23,526   6,385,090 

ASML Holding NV

  120,660   68,153,811 

BE Semiconductor Industries NV

  42,875   3,246,360 
  

 

 

 
   77,785,261 
Software — 0.2%      

CM.Com(a)

  17,016   561,789 
  

 

 

 
Trading Companies & Distributors — 2.3%      

AerCap Holdings NV(a)

  73,044   3,519,260 

IMCD NV

  30,247   3,742,972 
  

 

 

 
   7,262,232 
Total Common Stocks — 99.8%      

(Cost: $264,812,875)

   308,171,123 
  

 

 

 
 

 

 

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)

February 28, 2021

  

iShares® MSCI Netherlands ETF

(Percentages shown are based on Net Assets)

 

Security Shares  Value 

Short-Term Investments

  
Money Market Funds — 0.6%      

BlackRock Cash Funds: Institutional, SL Agency Shares, 0.12%(e)(f)(g)

  1,714,120  $1,715,149 

BlackRock Cash Funds: Treasury, SL Agency Shares, 0.00%(e)(f)

  100,000   100,000 
  

 

 

 
   1,815,149 
  

 

 

 

Total Short-Term Investments — 0.6%
(Cost: $1,814,689)

   1,815,149 
  

 

 

 

Total Investments in Securities — 100.4%
(Cost: $266,627,564)

   309,986,272 

Other Assets, Less Liabilities — (0.4)%

   (1,305,457
  

 

 

 

Net Assets — 100.0%

  $308,680,815 
  

 

 

 
(a) 

Non-income producing security.

(b) 

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

(c) 

All or a portion of this security is on loan.

(d) 

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

(e) 

Affiliate of the Fund.

(f) 

Annualized 7-day yield as of period-end.

(g) 

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

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended February 28, 2021 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliated Issuer  Value at
08/31/20
  Purchases
at Cost
  Proceeds
from Sales
  Net Realized
Gain (Loss)
  Change in
Unrealized
Appreciation
(Depreciation)
  Value at
02/28/21
  Shares
Held at
02/28/21
   Income  Capital Gain
Distributions
from
Underlying
Funds
 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $3,761,800  $  $(2,044,751)(a)  $(1,787 $(113 $1,715,149   1,714,120   $37,699(b)  $ 

BlackRock Cash Funds: Treasury, SL Agency Shares

   90,000   10,000(a)            100,000   100,000    48    
     

 

 

  

 

 

  

 

 

    

 

 

  

 

 

 
     $(1,787 $(113 $1,815,149    $37,747  $ 
     

 

 

  

 

 

  

 

 

    

 

 

  

 

 

 

 

 (a) 

Represents net amount purchased (sold).

 
 (b) 

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

 

Futures Contracts

 

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

Long Contracts

        

Euro STOXX 50 Index

   9    03/19/21   $396   $(2,258
        

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure    

As of February 28, 2021, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:    

 

    Equity
Contracts
 

Liabilities — Derivative Financial Instruments

  

Futures contracts

  

Unrealized depreciation on futures contracts(a)

  $2,258 
  

 

 

 

 

 (a) 

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

 

 

 

 

 

20 2 0 2 1   I SHARES   SEMI - ANNUAL   REPORT   TO   SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

February 28, 2021

  

iShares® MSCI Netherlands ETF

 

For the six months ended February 28, 2021, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

    

Equity

Contracts

 

Net Realized Gain (Loss) from:

  

Futures contracts

  $62,973 
  

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

  

Futures contracts

  $(7,740
  

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

  

Futures contracts:

     

Average notional value of contracts — long

  $666,146 

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

Fair Value Measurements

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

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2021. 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

  $308,171,122   $            —   $1   $308,171,123 

Money Market Funds

   1,815,149            1,815,149 
  

 

 

   

 

 

   

 

 

   

 

 

 
  $309,986,271   $   $1   $309,986,272 
  

 

 

   

 

 

   

 

 

   

 

 

 

Derivative financial instruments(a)

        

Liabilities

        

Futures Contracts

  $(2,258  $   $            —   $(2,258) 
  

 

 

   

 

 

   

 

 

   

 

 

 

 

 (a)

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

 

See notes to financial statements.

 

 

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)

February 28, 2021

  

iShares® MSCI Sweden ETF

(Percentages shown are based on Net Assets)

 

Security Shares  Value 

Common Stocks

  
Banks — 14.6%      

Nordea Bank Abp

  2,572,883  $23,376,202 

Skandinaviska Enskilda Banken AB, Class A(a)

  1,332,027   15,410,100 

Svenska Handelsbanken AB, Class A(a)

  1,281,636   13,582,128 

Swedbank AB, Class A

  745,711   13,140,337 
  

 

 

 
   65,508,767 
Building Products — 5.8%      

Assa Abloy AB, Class B

  796,440   20,071,945 

Nibe Industrier AB, Class B

  187,819   5,931,880 
  

 

 

 
   26,003,825 
Capital Markets — 0.8%      

EQT AB

  128,267   3,596,014 
  

 

 

 
Commercial Services & Supplies — 0.9%      

Securitas AB, Class B

  279,116   4,301,326 
  

 

 

 
Communications Equipment — 6.5%      

Telefonaktiebolaget LM Ericsson, Class B

  2,314,347   29,039,199 
  

 

 

 
Construction & Engineering — 1.6%      

Skanska AB, Class B

  290,859   7,091,335 
  

 

 

 
Diversified Financial Services — 10.5%      

Industrivarden AB, Class A(a)

  84,526   3,018,750 

Industrivarden AB, Class C(a)

  142,902   4,744,630 

Investor AB, Class B

  361,334   26,876,047 

Kinnevik AB, Class B

  194,181   9,070,919 

L E Lundbergforetagen AB, Class B(a)

  65,329   3,267,966 
  

 

 

 
   46,978,312 
Diversified Telecommunication Services — 1.9%      

Telia Co. AB

  2,068,167   8,398,135 
  

 

 

 
Electronic Equipment, Instruments & Components — 4.1%      

Hexagon AB, Class B

  220,553   18,473,719 
  

 

 

 
Food & Staples Retailing — 0.9%      

ICA Gruppen AB

  85,721   4,091,088 
  

 

 

 
Hotels, Restaurants & Leisure — 3.0%      

Evolution Gaming Group AB(b)

  106,917   13,383,558 
  

 

 

 
Household Durables — 2.1%      

Electrolux AB, Series B

  200,892   4,769,932 

Husqvarna AB, Class B

  374,928   4,610,667 
  

 

 

 
   9,380,599 
Household Products — 3.2%      

Essity AB, Class B

  474,385   14,333,033 
  

 

 

 
Industrial Conglomerates — 0.6%      

Investment AB Latour, Class B(c)

  119,073   2,725,889 
  

 

 

 
Machinery — 29.6%      

Alfa Laval AB(a)

  266,730   8,297,109 

Atlas Copco AB, Class A

  532,368   30,553,757 

Atlas Copco AB, Class B

  310,736   15,144,500 
Security Shares  Value 
Machinery (continued)      

Epiroc AB, Class A

  546,915  $11,667,381 

Epiroc AB, Class B

  323,564   6,401,869 

Sandvik AB(a)

  845,444   22,816,652 

SKF AB, Class B

  321,594   8,809,274 

Volvo AB, Class B(a)

  1,129,623   29,087,446 
  

 

 

 
   132,777,988 
Metals & Mining — 2.0%      

Boliden AB

  230,419   9,175,505 
  

 

 

 
Oil, Gas & Consumable Fuels — 1.2%      

Lundin Energy AB

  164,567   5,350,323 
  

 

 

 
Paper & Forest Products — 1.3%      

Svenska Cellulosa AB SCA, Class B(a)

  352,516   6,095,517 
  

 

 

 
Real Estate Management & Development — 0.6%      

Fastighets AB Balder, Class B(a)

  58,679   2,827,735 
  

 

 

 
Specialty Retail — 3.5%      

Hennes & Mauritz AB, Class B(a)

  659,160   15,615,628 
  

 

 

 
Tobacco — 2.2%      

Swedish Match AB

  135,172   9,770,888 
  

 

 

 
Wireless Telecommunication Services — 1.1%      

Tele2 AB, Class B

  410,522   5,207,214 
  

 

 

 

Total Common Stocks — 98.0%
(Cost: $389,495,968)

   440,125,597 
  

 

 

 

Short-Term Investments

  
Money Market Funds — 0.1%      

BlackRock Cash Funds: Institutional, SL Agency Shares, 0.12%(d)(e)(f)

  222,577   222,711 

BlackRock Cash Funds: Treasury, SL Agency Shares, 0.00%(d)(e)

  220,000   220,000 
  

 

 

 
   442,711 
  

 

 

 

Total Short-Term Investments — 0.1%
(Cost: $442,711)

   442,711 

Total Investments in Securities — 98.1%
(Cost: $389,938,679)

   440,568,308 

Other Assets, Less Liabilities — 1.9%

   8,515,090 
  

 

 

 

Net Assets — 100.0%

  $449,083,398 
  

 

 

 

 

 (a) 

Non-income producing security.

 
 (b) 

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

 
 (c) 

All or a portion of this security is on loan.

 
 (d) 

Affiliate of the Fund.

 
 (e) 

Annualized 7-day yield as of period-end.

 
 (f) 

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

 
 

 

 

22 2 0 2 1   I SHARES   SEMI - ANNUAL   REPORT   TO   SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

February 28, 2021

  

iShares® MSCI Sweden ETF

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended February 28, 2021 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliated Issuer  Value at
08/31/20
   Purchases
at Cost
   Proceeds
from Sales
   Net Realized
Gain (Loss)
   Change in
Unrealized
Appreciation
(Depreciation)
   Value at
02/28/21
   Shares
Held at
02/28/21
   Income   

Capital

Gain
Distributions
from
Underlying
Funds

 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $3,686,386   $   $(3,462,473)(a)   $(2,003  $
 
 
801
 
 
  $222,711    222,577   $
 
 
1,828
 
(b) 
 
  $
 
 
 
 

BlackRock Cash Funds: Treasury, SL Agency Shares

   80,000    140,000(a)                220,000    220,000    62     
        

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
        $(2,003  $801   $442,711     $1,890   $ 
        

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

 (a) 

Represents net amount purchased (sold).

 
 (b) 

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

 

Futures Contracts

 

Description  

Number of

Contracts

   Expiration
Date
   Notional
Amount
(000)
   Value/
Unrealized
Appreciation
(Depreciation)
 

Long Contracts

        

OMXS 30 Index

   365    03/19/21   $8,712   $(113,542
        

Forward Foreign Currency Exchange Contracts

 

Currency Purchased   Currency Sold   Counterparty  Settlement Date       Unrealized
Appreciation
(Depreciation)
 
USD   1,149,054   EUR   945,218   SCB   03/19/21     $1,296 
              

 

 

 
SEK   3,200,805   USD   384,437   SCB   03/19/21      (3,320
USD   8,124,274   SEK   68,392,980   SCB   03/19/21      (19,222
              

 

 

 
               (22,542
              

 

 

 
   Net unrealized depreciation             $(21,246
              

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

As of February 28, 2021, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

    Equity
Contracts
   

Foreign
Currency
Exchange

Contracts

   Total 

Assets — Derivative Financial Instruments

      

Forward foreign currency exchange contracts

      

Unrealized appreciation on forward foreign currency exchange contracts

  $   $1,296   $1,296 
  

 

 

   

 

 

   

 

 

 

Liabilities — Derivative Financial Instruments

      

Futures contracts

      

Unrealized depreciation on futures contracts(a)

  $113,542   $   $113,542 

Forward foreign currency exchange contracts

      

Unrealized depreciation on forward foreign currency exchange contracts

  $   $22,542   $22,542 
  

 

 

   

 

 

   

 

 

 
  $113,542   $22,542   $136,084 
  

 

 

   

 

 

   

 

 

 

 

 

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)

February 28, 2021

  

iShares® MSCI Sweden ETF

 

 (a)

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

 

For the six months ended February 28, 2021, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

    Equity
Contracts
   Foreign
Currency
Exchange
Contracts
   Total 

Net Realized Gain (Loss) from:

      

Futures contracts

  $1,350,942   $   $1,350,942 

Forward foreign currency exchange contracts

       (753,638   (753,638
  

 

 

   

 

 

   

 

 

 
  $1,350,942   $(753,638  $597,304 
  

 

 

   

 

 

   

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

      

Futures contracts

  $(136,377  $   $(136,377

Forward foreign currency exchange contracts

       584,756    584,756 
  

 

 

   

 

 

   

 

 

 
  $(136,377  $584,756   $448,379 
  

 

 

   

 

 

   

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

     

Average notional value of contracts — long

  $7,750,388 

Forward foreign currency exchange contracts:

  

Average amounts purchased — in USD

  $289,693 

Average amounts sold — in USD

  $9,159,663 

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

Derivative Financial Instruments—Offsetting as of Period End

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

 

    Assets   Liabilities 

Derivative Financial Instruments:

    

Futures contracts

  $   $113,542 

Forward foreign currency exchange contracts

   1,296    22,542 
  

 

 

   

 

 

 

Total derivative assets and liabilities in the Statement of Assets and Liabilities

   1,296    136,084 

Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”)

       (113,542
  

 

 

   

 

 

 

Total derivative assets and liabilities subject to an MNA

   1,296    22,542 
  

 

 

   

 

 

 

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

 

Counterparty  Derivative
Assets
Subject to
an MNA by
Counterparty
   Derivatives
Available
for Offset(a)
   Net Amount
of Derivative
Assets
 

Standard Chartered Bank

  $1,296   $(1,296  $ 
  

 

 

   

 

 

   

 

 

 

 

Counterparty  Derivative
Liabilities
Subject to
an MNA by
Counterparty
   Derivatives
Available
for Offset(a)
   Net Amount
of Derivative
Liabilities(b)
 

Standard Chartered Bank

  $22,542   $(1,296  $21,246 
  

 

 

   

 

 

   

 

 

 

 

 (a) 

The amount of derivatives available for offset is limited to the amount of derivatives assets and/or liabilities that are subject to an MNA.

 
 (b) 

Net amount represents the net amount payable due to the counterparty in the event of default.

 

 

 

24 2 0 2 1   I SHARES   SEMI - ANNUAL   REPORT   TO   SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

February 28, 2021

  

iShares® MSCI Sweden ETF

 

Fair Value Measurements

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

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2021. 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

 $440,125,597  $  $   $440,125,597 

Money Market Funds

  442,711          442,711 
 

 

 

  

 

 

  

 

 

   

 

 

 
 $440,568,308  $  $   $440,568,308 
 

 

 

  

 

 

  

 

 

   

 

 

 

Derivative financial instruments(a)

     

Assets

     

Forward Foreign Currency Exchange Contracts

 $  $1,296  $   $1,296 

Liabilities

     

Forward Foreign Currency Exchange Contracts

     (22,542      (22,542

Futures Contracts

  (113,542         (113,542
 

 

 

  

 

 

  

 

 

   

 

 

 
 $(113,542 $(21,246 $   $(134,788) 
 

 

 

  

 

 

  

 

 

   

 

 

 

 

 (a)

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

 

See notes to financial statements.

 

 

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

 25


Statements of Assets and Liabilities  (unaudited)

February 28, 2021

      

 

  iShares
MSCI Austria
ETF
  iShares
MSCI
Belgium ETF
  iShares
MSCI France
ETF
  iShares
MSCI
Netherlands
ETF
 

ASSETS

    

Investments in securities, at value (including securities on loan)(a):

    

Unaffiliated(b)

 $55,809,851  $35,485,207  $760,804,711  $308,171,123 

Affiliated(c)

  3,251,548   402,760   260,000   1,815,149 

Cash

  1,141   6,666   4,501   7,219 

Foreign currency, at value(d)

  29,399   1,713,704   890,711   359,042 

Foreign currency collateral pledged:

    

Futures contracts(e)

  75,256   4,855   94,676   31,559 

Receivables:

    

Investments sold

  593,196   1,250,976   668,738   18,878,384 

Securities lending income — Affiliated

  12,129   1,719   721   3,208 

Capital shares sold

           43,849 

Dividends

            

Tax reclaims

  671,037   31,677       
 

 

 

  

 

 

  

 

 

  

 

 

 

Total assets

  60,443,557   38,904,880   762,724,058   329,309,533 
 

 

 

  

 

 

  

 

 

  

 

 

 

LIABILITIES

    

Collateral on securities loaned, at value

  3,233,704   394,567      1,717,447 

Payables:

    

Investments purchased

  569,527   1,131,291   475,117   18,784,332 

Variation margin on futures contracts

  12,563   11,456   13,665   5,316 

Investment advisory fees

  22,253   14,509   298,361   121,623 
 

 

 

  

 

 

  

 

 

  

 

 

 

Total liabilities

  3,838,047   1,551,823   787,143   20,628,718 
 

 

 

  

 

 

  

 

 

  

 

 

 

NET ASSETS

 $56,605,510  $37,353,057  $761,936,915  $308,680,815 
 

 

 

  

 

 

  

 

 

  

 

 

 

NET ASSETS CONSIST OF:

    

Paid-in capital

 $104,597,685  $59,621,295  $808,529,033  $273,766,278 

Accumulated earnings (loss)

  (47,992,175  (22,268,238  (46,592,118  34,914,537 
 

 

 

  

 

 

  

 

 

  

 

 

 

NET ASSETS

 $56,605,510  $37,353,057  $761,936,915  $308,680,815 
 

 

 

  

 

 

  

 

 

  

 

 

 

Shares outstanding

  2,650,000   1,840,000   22,400,000   7,000,000 
 

 

 

  

 

 

  

 

 

  

 

 

 

Net asset value

 $21.36  $20.30  $34.02  $44.10 
 

 

 

  

 

 

  

 

 

  

 

 

 

Shares authorized

  100 million   136.2 million   340.2 million   255 million 
 

 

 

  

 

 

  

 

 

  

 

 

 

Par value

 $0.001  $0.001  $0.001  $0.001 
 

 

 

  

 

 

  

 

 

  

 

 

 

(a) Securities loaned, at value

 $3,009,254  $362,988  $  $1,639,134 

(b) Investments, at cost — Unaffiliated

 $61,148,066  $40,245,271  $800,493,150  $264,812,875 

(c) Investments, at cost — Affiliated

 $3,251,187  $402,715  $260,000  $1,814,689 

(d) Foreign currency, at cost

 $21,458  $1,713,620  $883,272  $358,521 

(e) Foreign currency collateral pledged, at cost

 $81,084  $4,893  $101,768  $31,672 

See notes to financial statements.

 

 

26 2 0 2 1   I SHARES   SEMI - ANNUAL   REPORT   TO   SHAREHOLDERS


Statements of Assets and Liabilities  (unaudited) (continued)

February 28, 2021

  

    

 

    iShares
MSCI
Sweden ETF
 

ASSETS

  

Investments in securities, at value (including securities on loan)(a):

  

Unaffiliated(b)

  $440,125,597 

Affiliated(c)

   442,711 

Cash

   1,133 

Foreign currency, at value(d)

   1,521,451 

Foreign currency collateral pledged:

  

Futures contracts(e)

   1,161,296 

Receivables:

  

Investments sold

   1,566,643 

Securities lending income — Affiliated

   55 

Dividends

   142,456 

Tax reclaims

   496,417 

Foreign withholding tax claims

   16,694,381 

Unrealized appreciation on:

  

Forward foreign currency exchange contracts

   1,296 
  

 

 

 

Total assets

   462,153,436 
  

 

 

 

LIABILITIES

  

Collateral on securities loaned, at value

   226,115 

Payables:

  

Investments purchased

   1,925,150 

Variation margin on futures contracts

   146,092 

Investment advisory fees

   170,683 

Professional fees

   1,709,438 

IRS compliance fee for foreign withholding tax claims

   8,870,018 

Unrealized depreciation on:

  

Forward foreign currency exchange contracts

   22,542 
  

 

 

 

Total liabilities

   13,070,038 
  

 

 

 

NET ASSETS

  $449,083,398 
  

 

 

 

NET ASSETS CONSIST OF:

  

Paid-in capital

  $437,041,524 

Accumulated earnings

   12,041,874 
  

 

 

 

NET ASSETS

  $449,083,398 
  

 

 

 

Shares outstanding

   10,650,000 
  

 

 

 

Net asset value

  $42.17 

Shares authorized

   63.6 million 
  

 

 

 

Par value

  $0.001 
  

 

 

 

(a) Securities loaned, at value

  $208,391 

(b) Investments, at cost — Unaffiliated

  $389,495,968 

(c)  Investments, at cost — Affiliated

  $442,711 

(d) Foreign currency, at cost

  $1,485,280 

(e) Foreign currency collateral pledged, at cost

  $1,257,840 

See notes to financial statements.

 

 

I N A N C I A L   S T A T E M E N T S

 27


Statements of Operations  (unaudited)

Six Months Ended February 28, 2021

  

    

 

    iShares
MSCI
Austria ETF
   iShares
MSCI
Belgium
ETF
   iShares
MSCI France
ETF
   iShares
MSCI
Netherlands
ETF
 

INVESTMENT INCOME

        

Dividends — Unaffiliated

  $578,535   $201,075   $3,929,341   $895,923 

Dividends — Affiliated

   5    5    164    48 

Securities lending income — Affiliated — net

   75,154    8,806    102,158    37,699 

Foreign taxes withheld

   (77,348   (30,190   (565,041   (118,547
  

 

 

   

 

 

   

 

 

   

 

 

 

Total investment income

   576,346    179,696    3,466,622    815,123 
  

 

 

   

 

 

   

 

 

   

 

 

 

EXPENSES

        

Investment advisory fees

   123,659    82,125    2,082,076    630,159 
  

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses

   123,659    82,125    2,082,076    630,159 
  

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

   452,687    97,571    1,384,546    184,964 
  

 

 

   

 

 

   

 

 

   

 

 

 

REALIZED AND UNREALIZED GAIN (LOSS)

        

Net realized gain (loss) from:

        

Investments — Unaffiliated

   (1,278,526   (744,685   (1,425,973   1,206,702 

Investments — Affiliated

   (1,688   (528   (5,094   (1,787

In-kind redemptions — Unaffiliated

   686,880    785,008    50,953,325    14,100,975 

Futures contracts

   202,951    15,643    356,610    62,973 

Foreign currency transactions

   23,817    6,342    (43,966   13,124 

Litigation proceeds

       1,685,553(a)         
  

 

 

   

 

 

   

 

 

   

 

 

 

Net realized gain (loss)

   (366,566   1,747,333    49,834,902    15,381,987 
  

 

 

   

 

 

   

 

 

   

 

 

 

Net change in unrealized appreciation (depreciation) on:

        

Investments — Unaffiliated

  ��16,118,970    2,410,444    79,269,183    43,071,905 

Investments — Affiliated

   424    95    770    (113

Futures contracts

   6,609    (10,053   (4,520   (7,740

Foreign currency translations

   (7,190   (3,871   (35,495   (13,200
  

 

 

   

 

 

   

 

 

   

 

 

 

Net change in unrealized appreciation (depreciation)

   16,118,813    2,396,615    79,229,938    43,050,852 
  

 

 

   

 

 

   

 

 

   

 

 

 

Net realized and unrealized gain

   15,752,247    4,143,948    129,064,840    58,432,839 
  

 

 

   

 

 

   

 

 

   

 

 

 

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS

  $16,204,934   $4,241,519   $130,449,386   $58,617,803 
  

 

 

   

 

 

   

 

 

   

 

 

 

 

 (a)

Represents proceeds from settlement of litigation where the Fund was able to recover a portion of investment losses previously realized.

 

See notes to financial statements.

 

 

28 2 0 2 1   I SHARES   SEMI - ANNUAL   REPORT   TO   SHAREHOLDERS


Statements of Operations  (unaudited) (continued)

Six Months Ended February 28, 2021

  

 

   iShares
MSCI
Sweden
ETF
 

INVESTMENT INCOME

 

Dividends — Unaffiliated

 $2,931,708 

Dividends — Affiliated

  62 

Securities lending income — Affiliated — net

  1,828 

Foreign taxes withheld

  (440,573

Foreign withholding tax claims

  407,729 
 

Total investment income

  2,900,754 
 

EXPENSES

 

Investment advisory fees

  895,531 

Professional fees

  40,773 
 

Total expenses

  936,304 
 

Net investment income

  1,964,450 
 

REALIZED AND UNREALIZED GAIN (LOSS)

 

Net realized gain (loss) from:

 

Investments — Unaffiliated

  (1,342,234

Investments — Affiliated

  (2,003

Futures contracts

  1,350,942 

Forward foreign currency exchange contracts

  (753,638

Foreign currency transactions

  62,974 
 

Net realized loss

  (683,959
 

Net change in unrealized appreciation (depreciation) on:

 

Investments — Unaffiliated

  63,210,696 

Investments — Affiliated

  801 

Futures contracts

  (136,377

Forward foreign currency exchange contracts

  584,756 

Foreign currency translations

  231,882 

Net change in unrealized appreciation (depreciation)

  63,891,758 
 

Net realized and unrealized gain

  63,207,799 
 

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS

 $65,172,249 
 

See notes to financial statements.

 

 

I N A N C I A L   S T A T E M E N T S

 29


Statements of Changes in Net Assets    

    

 

  iShares MSCI Austria ETF  iShares MSCI Belgium ETF 
   Six Months
Ended
02/28/21
(unaudited)
  Year Ended
08/31/20
  Six Months
Ended
02/28/21
(unaudited)
  Year Ended
08/31/20
 

INCREASE (DECREASE) IN NET ASSETS

    

OPERATIONS

    

Net investment income

 $452,687  $183,431  $97,571  $539,519 

Net realized gain (loss)

  (366,566  (8,074,786  1,747,333   (1,341,988

Net change in unrealized appreciation (depreciation)

  16,118,813   (5,757,287  2,396,615   467,996 
    

Net increase (decrease) in net assets resulting from operations

  16,204,934   (13,648,642  4,241,519   (334,473
    

DISTRIBUTIONS TO SHAREHOLDERS(a)

    

Decrease in net assets resulting from distributions to shareholders

  (533,753  (418,122  (294,046  (830,721
    

CAPITAL SHARE TRANSACTIONS

    

Net increase (decrease) in net assets derived from capital share transactions

  (2,170,002  2,404,148   720,848   (13,455,384
    

NET ASSETS

    

Total increase (decrease) in net assets

  13,501,179   (11,662,616  4,668,321   (14,620,578

Beginning of period

  43,104,331   54,766,947   32,684,736   47,305,314 
    

End of period

 $56,605,510  $43,104,331  $37,353,057  $32,684,736 
    

 

(a)

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

See notes to financial statements.

 

 

30 2 0 2 1   I SHARES   SEMI - ANNUAL   REPORT   TO   SHAREHOLDERS


Statements of Changes in Net Assets  (continued)

  

    

 

  iShares
MSCI France ETF
  iShares
MSCI Netherlands ETF
 
   Six Months
Ended
02/28/21
(unaudited)
  Year Ended
08/31/20
  Six Months
Ended
02/28/21
(unaudited)
  Year Ended
08/31/20
 

INCREASE (DECREASE) IN NET ASSETS

    

OPERATIONS

    

Net investment income

 $1,384,546  $9,197,861  $184,964  $1,868,717 

Net realized gain

  49,834,902   28,873,449   15,381,987   9,063,376 

Net change in unrealized appreciation (depreciation)

  79,229,938   (43,250,640  43,050,852   7,091,637 
 

 

 

  

 

 

  

 

 

  

 

 

 

Net increase (decrease) in net assets resulting from operations

  130,449,386   (5,179,330  58,617,803   18,023,730 
 

 

 

  

 

 

  

 

 

  

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS(a)

    

Decrease in net assets resulting from distributions to shareholders

  (4,439,094  (6,248,852  (853,577  (1,766,500
 

 

 

  

 

 

  

 

 

  

 

 

 

CAPITAL SHARE TRANSACTIONS

    

Net increase (decrease) in net assets derived from capital share transactions

  (249,007,897  (232,837,366  63,397,867   38,219,101 
 

 

 

  

 

 

  

 

 

  

 

 

 

NET ASSETS

    

Total increase (decrease) in net assets

  (122,997,605  (244,265,548  121,162,093   54,476,331 

Beginning of period

  884,934,520   1,129,200,068   187,518,722   133,042,391 
 

 

 

  

 

 

  

 

 

  

 

 

 

End of period

 $761,936,915  $884,934,520  $308,680,815  $187,518,722 
 

 

 

  

 

 

  

 

 

  

 

 

 

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

See notes to financial statements.

 

 

I N A N C I A L  T A T E M E N T S

 31


Statements of Changes in Net Assets  (continued)  

    

 

Statements of Changes in Net Assets (continued)

 

  iShares
MSCI Sweden ETF
 
   Six Months
Ended
02/28/21
(unaudited)
  Year Ended
08/31/20
 

INCREASE (DECREASE) IN NET ASSETS

  

OPERATIONS

  

Net investment income

 $1,964,450  $2,183,048 

Net realized loss

  (683,959  (20,139,204

Net change in unrealized appreciation (depreciation)

  63,891,758   57,712,445 
 

 

 

  

 

 

 

Net increase in net assets resulting from operations

  65,172,249   39,756,289 
 

 

 

  

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS(a)

  

Decrease in net assets resulting from distributions to shareholders

  (2,740,217  (3,366,893
 

 

 

  

 

 

 

CAPITAL SHARE TRANSACTIONS

  

Net increase in net assets derived from capital share transactions

  140,148,409   4,597,755 
 

 

 

  

 

 

 

NET ASSETS

  

Total increase in net assets

  202,580,441   40,987,151 

Beginning of period

  246,502,957   205,515,806 
 

 

 

  

 

 

 

End of period

 $449,083,398  $246,502,957 
 

 

 

  

 

 

 

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

See notes to financial statements.

 

 

32 2 0 2 1   I SHARES   SEMI - ANNUAL   REPORT   TO   SHAREHOLDERS


Financial Highlights  

(For a share outstanding throughout each period)

  

    

 

  iShares MSCI Austria ETF 
  Six Months Ended
02/28/21
(unaudited)
  Year Ended
08/31/20
  Year Ended
08/31/19
  Year Ended
08/31/18
  Year Ended
08/31/17
  Year Ended
08/31/16
 

 

Net asset value, beginning of period

 $15.67  $18.89  $22.88  $22.87  $15.58  $15.59 
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Net investment income(a)

  0.16   0.06   0.48   0.58   0.53   0.38 

Net realized and unrealized gain (loss)(b)

  5.72   (3.16  (3.69  0.11   7.13   (0.06
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Net increase (decrease) from investment operations

  5.88   (3.10  (3.21  0.69   7.66   0.32 
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Distributions(c)

      

From net investment income

  (0.19  (0.12  (0.78  (0.68  (0.37  (0.33
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Total distributions

  (0.19  (0.12  (0.78  (0.68  (0.37  (0.33
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Net asset value, end of period

 $21.36  $15.67  $18.89  $22.88  $22.87  $15.58 
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Total Return

      

Based on net asset value

  37.71%(d)   (16.58)%   (14.07)%   3.03  49.52  2.11
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Ratios to Average Net Assets

      

Total expenses

  0.50%(e)   0.51  0.49  0.47  0.49  0.48
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Net investment income

  1.84%(e)   0.32  2.34  2.37  2.75  2.47
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Supplemental Data

      

Net assets, end of period (000)

 $56,606  $43,104  $54,767  $146,463  $233,322  $60,780 
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Portfolio turnover rate(f)

  5%(d)    16  17  19  18  15
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

 

(a)

Based on average shares outstanding.

(b)

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

(c) 

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

(d)

Not annualized.

(e) 

Annualized.

(f) 

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

I N A N C I A L  T A T E M E N T S

 33


Financial Highlights  (continued)

(For a share outstanding throughout each period)

  

    

 

  iShares MSCI Belgium ETF 
  Six Months Ended
02/28/21
(unaudited)
  Year Ended
08/31/20
  Year Ended
08/31/19
  Year Ended
08/31/18
  Year Ended
08/31/17
  Year Ended
08/31/16
 

 

Net asset value, beginning of period

 $17.76  $18.48  $19.70  $20.59  $18.16  $17.00 
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Net investment income(a)

  0.06   0.24   0.44   0.50   0.43   0.34 

Net realized and unrealized gain (loss)(b)

  2.66   (0.60  (1.22  (0.77  2.51   1.05 
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Net increase (decrease) from investment operations

  2.72   (0.36  (0.78  (0.27  2.94   1.39 
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Distributions(c)

      

From net investment income

  (0.18  (0.36  (0.44  (0.62  (0.51  (0.23
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Total distributions

  (0.18  (0.36  (0.44  (0.62  (0.51  (0.23
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Net asset value, end of period

 $20.30  $17.76  $18.48  $19.70  $20.59  $18.16 
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Total Return

      

Based on net asset value

  15.32%(d)(e)   (2.02)%   (3.80)%   (1.34)%   16.44  8.20
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Ratios to Average Net Assets

      

Total expenses

  0.50%(f)   0.51  0.49  0.47  0.49  0.48
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Net investment income

  0.60%(f)   1.34  2.43  2.40  2.31  1.92
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Supplemental Data

      

Net assets, end of period (000)

 $37,353  $32,685  $47,305  $59,903  $74,128  $132,203 
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Portfolio turnover rate(g)

  6%(d)    18  11  13  8  19
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

 

(a) 

Based on average shares outstanding.

(b)

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

(c) 

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

(d) 

Not annualized.

(e)

Includes payment received from a settlement of litigation. Excluding the payment, the Fund’s total return is 10.15%.

(f) 

Annualized.

(g) 

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

34 2 0 2 1   I SHARES   SEMI - ANNUAL   REPORT   TO   SHAREHOLDERS


Financial Highlights  (continued)

(For a share outstanding throughout each period)

 

  iShares MSCI France ETF 
  Six Months Ended
02/28/21
(unaudited)
  Year Ended
08/31/20
  Year Ended
08/31/19
  Year Ended
08/31/18
  Year Ended
08/31/17
  Year Ended
08/31/16
 

 

Net asset value, beginning of period

 $29.30  $29.41  $31.10  $29.64  $23.84  $25.01 
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Net investment income(a)

  0.05   0.32   0.83   0.80   0.69   0.67 

Net realized and unrealized gain (loss)(b)

  4.83   (0.18  (1.67  1.40   5.69   (1.14
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Net increase (decrease) from investment operations

  4.88   0.14   (0.84  2.20   6.38   (0.47
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Distributions(c)

      

From net investment income

  (0.16  (0.25  (0.85  (0.74  (0.58  (0.70
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Total distributions

  (0.16  (0.25  (0.85  (0.74  (0.58  (0.70
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Net asset value, end of period

 $34.02  $29.30  $29.41  $31.10  $29.64  $23.84 
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Total Return

      

Based on net asset value

  16.68%(d)   0.50  (2.64)%   7.46  26.93  (1.87)% 
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Ratios to Average Net Assets

      

Total expenses

  0.50%(e)    0.51  0.50  0.47  0.49  0.48
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Net investment income

  0.33%(e)    1.09  2.84  2.53  2.57  2.77
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Supplemental Data

      

Net assets, end of period (000)

 $761,937  $884,935  $1,129,200  $939,218  $640,201  $329,054 
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Portfolio turnover rate(f)

  2%(d)    2  2  4  6  6
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

 

(a) 

Based on average shares outstanding.

(b) 

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

(c) 

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

(d) 

Not annualized.

(e) 

Annualized.

(f) 

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

I N A N C I A L  I G H L I G H T S

 35


Financial Highlights  (continued)

(For a share outstanding throughout each period)

 

  iShares MSCI Netherlands ETF 
  Six Months Ended
02/28/21
(unaudited)
  Year Ended
08/31/20
  Year Ended
08/31/19
  Year Ended
08/31/18
  Year Ended
08/31/17
  Year Ended
08/31/16
 

 

Net asset value, beginning of period

 $35.38  $30.58  $31.12  $30.56  $24.78  $24.48 
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Net investment income(a)

  0.03   0.33   0.88   0.62   0.46   0.71 

Net realized and unrealized gain (loss)(b)

  8.82   4.80   (0.56  0.62   5.98   0.08 
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Net increase from investment operations

  8.85   5.13   0.32   1.24   6.44   0.79 
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Distributions(c)

      

From net investment income

  (0.13  (0.33  (0.86  (0.68  (0.66  (0.49
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Total distributions

  (0.13  (0.33  (0.86  (0.68  (0.66  (0.49
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Net asset value, end of period

 $44.10  $35.38  $30.58  $31.12  $30.56  $24.78 
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Total Return

      

Based on net asset value

  25.05%(d)   16.88  1.16  4.08  26.44  3.32
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Ratios to Average Net Assets

      

Total expenses

  0.50%(e)    0.51  0.50  0.47  0.49  0.48
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Net investment income

  0.15%(e)    1.03  2.97  1.95  1.74  2.97
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Supplemental Data

      

Net assets, end of period (000)

 $308,681  $187,519  $133,042  $129,168  $192,540  $184,587 
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Portfolio turnover rate(f)

  27%(d)    19  13  7  14  24
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

 

(a) 

Based on average shares outstanding.

(b) 

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

(c) 

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

(d) 

Not annualized.

(e) 

Annualized.

(f) 

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

36 2 0 2 1   I SHARES   SEMI - ANNUAL   REPORT   TO   SHAREHOLDERS


Financial Highlights  (continued)

(For a share outstanding throughout each period)

  

    

 

  iShares MSCI Sweden ETF 
  Six Months Ended
02/28/21
(unaudited)
  Year Ended
08/31/20
  Year Ended
08/31/19
  Year Ended
08/31/18
  Year Ended
08/31/17
  Year Ended
08/31/16
 

 

Net asset value, beginning of period

 $35.73  $28.25  $31.85  $34.68  $28.54  $30.26 
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Net investment income(a)

  0.21   0.34   0.95   1.14   0.86   1.05 

Net realized and unrealized gain (loss)(b)

  6.52   7.65   (3.58  (2.19  6.04   (1.63
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Net increase (decrease) from investment operations

  6.73   7.99   (2.63  (1.05  6.90   (0.58
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Distributions(c)

      

From net investment income

  (0.29  (0.51  (0.97  (1.78  (0.76  (1.14
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Total distributions

  (0.29  (0.51  (0.97  (1.78  (0.76  (1.14
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Net asset value, end of period

 $42.17  $35.73  $28.25  $31.85  $34.68  $28.54 
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Total Return

      

Based on net asset value

  18.87%(d)   28.51  (8.41)%   (2.88)%   24.30  (1.91)% 
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Ratios to Average Net Assets

      

Total expenses

  0.52%(e)    0.55  0.55  0.53  0.53  0.48
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Total expenses excluding professional fees for foreign withholding tax claims

  0.50%(e)    0.51  0.49  0.47  0.49  0.48
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Net investment income

  1.10%(e)    1.09  3.16  3.34  2.74  3.65
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Supplemental Data

      

Net assets, end of period (000)

 $449,083  $246,503  $205,516  $248,468  $460,315  $284,709 
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Portfolio turnover rate(f)

  3%(d)    8  4  5  9  7
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

 

(a) 

Based on average shares outstanding.

(b) 

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

(c) 

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

(d) 

Not annualized.

(e) 

Annualized.

(f) 

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

I N A N C I A L   H I G H L I G H T S

 37


Notes to Financial Statements  (unaudited)

 

1. ORGANIZATION

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

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

 

iShares ETF Diversification
Classification
 

MSCI Austria

  Non-diversified 

MSCI Belgium

  Non-diversified 

MSCI France

  Non-diversified 

MSCI Netherlands

  Non-diversified 

MSCI Sweden

  Non-diversified 

2. SIGNIFICANT ACCOUNTING POLICIES

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

Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recorded on the ex-dividend date. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Dividends from foreign securities where the ex-dividend date may have passed are subsequently recorded when the Funds are informed of the ex-dividend date. Under the applicable foreign tax laws, a withholding tax at various rates may be imposed on capital gains, dividends and interest. Upon notification from issuers or as estimated by management, a portion of the dividend income received from a real estate investment trust may be redesignated as a reduction of cost of the related investment and/or realized gain.

Foreign Currency Translation: Each Fund’s books and records are maintained in U.S. dollars. Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using prevailing market rates as quoted by one or more data service providers. Purchases and sales of investments are recorded at the rates of exchange prevailing on the respective dates of such transactions. Generally, when the U.S. dollar rises in value against a foreign currency, the investments denominated in that currency will lose value; the opposite effect occurs if the U.S. dollar falls in relative value.

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

Foreign Taxes: The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which each Fund invests. These foreign taxes, if any, are paid by each Fund and are reflected in its statement of operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “Other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of February 28, 2021, if any, are disclosed in the statement of assets and liabilities.

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

Segregation and Collateralization: In cases where a Fund enters into certain investments (e.g., futures contracts and forward foreign currency exchange contracts) that would be treated as “senior securities” for 1940 Act purposes, a Fund may segregate or designate on its books and record cash or liquid assets having a market value at least equal to the amount of its future obligations under such investments. Doing so allows the investment to be excluded from treatment as a “senior security.” Furthermore, if required by an exchange or counterparty agreement, the Funds may be required to deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments or obligations.

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

 

 

38 2 0 2 1   I SHARES   SEMI - ANNUAL   REPORT   TO   SHAREHOLDERS


Notes to Financial Statements  (unaudited) (continued)

 

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. The character and timing of distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

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

 

3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

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

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

  

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

  

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

  

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

  

Forward foreign currency exchange contracts are valued based on that day’s prevailing forward exchange rate for the underlying currencies.

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

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

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

  

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

  

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

  

Level 3 – Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, (including the 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 judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the Global Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held companies or funds that may not have a secondary market and/or may have a limited number of investors. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

 

4. SECURITIES AND OTHER INVESTMENTS

Securities Lending: Each Fund may lend its securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by an approved bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the current market value of the loaned securities for securities traded on U.S.

 

 

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

 39


Notes to Financial Statements  (unaudited) (continued)

 

exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund or excess collateral is returned by the Fund, on the next business day. During the term of the loan, each Fund is entitled to all distributions made on or in respect of the loaned securities but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.

As of period end, any securities on loan were collateralized by cash and/or U.S. Government obligations. Cash collateral invested in money market funds managed by BlackRock Fund Advisors (“BFA”), the Funds’ investment adviser, or its affiliates 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, if any, are also disclosed in each Fund’s schedule of investments. The market value of any securities on loan and the value of any related cash collateral are disclosed in the statements of assets and liabilities.

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

As of period end, the following table is a summary of the securities on loan by counterparty which are subject to offset under an MSLA as of February 28, 2021:

 

iShares ETF and Counterparty  Market Value of
Securities on Loan
   Cash Collateral
Received(a)
   Non-Cash Collateral
Received
   Net Amount 

MSCI Austria

        

Barclays Capital Inc.

  $813,189   $813,189   $                —   $                — 

BofA Securities, Inc

   78,686    78,686         

Citigroup Global Markets Inc

   422,951    422,951         

Morgan Stanley & Co. LLC

   1,694,428    1,694,428         
  

 

 

   

 

 

   

 

 

   

 

 

 
  $3,009,254   $3,009,254   $   $ 
  

 

 

   

 

 

   

 

 

   

 

 

 

MSCI Belgium

        

BofA Securities, Inc

  $117,425   $117,425   $   $ 

Citigroup Global Markets Inc

   6,919    6,919         

Goldman Sachs & Co

   9,052    9,052         

JPMorgan Securities LLC

   34,590    34,590         

Morgan Stanley & Co. LLC

   195,002    195,002         
  

 

 

   

 

 

   

 

 

   

 

 

 
  $362,988   $362,988   $   $ 
  

 

 

   

 

 

   

 

 

   

 

 

 

MSCI Netherlands

        

Credit Suisse AG

  $1,480,348   $1,480,348   $   $ 

Deutsche Bank Securities Inc

   8,011    8,011         

Morgan Stanley & Co. LLC

   68,136    68,136         

UBS AG

   82,639    82,639         
  

 

 

   

 

 

   

 

 

   

 

 

 
  $1,639,134   $1,639,134   $   $ 
  

 

 

   

 

 

   

 

 

   

 

 

 

MSCI Sweden

        

Morgan Stanley & Co. LLC

  $208,391   $208,391   $   $ 
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) 

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

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

 

5. DERIVATIVE FINANCIAL INSTRUMENTS

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

 

 

40 2 0 2 1   I SHARES   SEMI - ANNUAL   REPORT   TO   SHAREHOLDERS


Notes to Financial Statements  (unaudited) (continued)

 

Notes to Financial Statements (unaudited) (continued)

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

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

Forward Foreign Currency Exchange Contracts: Forward foreign currency exchange contracts are entered into to gain or reduce exposure to foreign currencies (foreign currency exchange rate risk).

A forward foreign currency exchange contract is an agreement between two parties to buy and sell a currency at a set exchange rate on a specified date. These contracts help to manage the overall exposure to the currencies in which some of the investments held by the Funds are denominated and in some cases, may be used to obtain exposure to a particular market.The contracts are traded over-the-counter (“OTC”) and not on an organized exchange.

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

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

For derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting the mark-to-market amount for each transaction under such agreement, and comparing that amount to the value of any collateral currently pledged by a fund and the counterparty.

Cash collateral that has been pledged to cover obligations of the Funds and cash collateral received from the counterparty, if any, is reported separately in the Statements of Assets and Liabilities as cash pledged as collateral and cash received as collateral, respectively. Non-cash collateral pledged by the Funds, if any, is noted in the Schedules of Investments. Generally, the amount of collateral due from or to a counterparty is subject to a certain minimum transfer amount threshold before a transfer is required, which is determined at the close of business of the Funds. Any additional required collateral is delivered to/pledged by the Funds on the next business day. Typically, the counterparty is not permitted to sell, re-pledge or use cash and non-cash collateral it receives. A Fund generally agrees not to use non-cash collateral that it receives but may, absent default or certain other circumstances defined in the underlying ISDA Master Agreement, be permitted to use cash collateral received. In such cases, interest may be paid pursuant to the collateral arrangement with the counterparty. To the extent amounts due to the Funds from the counterparty are not fully collateralized, each Fund bears the risk of loss from counterparty non-performance. Likewise, to the extent the Funds have delivered collateral to a counterparty and stand ready to perform under the terms of their agreement with such counterparty, each Fund bears the risk of loss from a counterparty in the amount of the value of the collateral in the event the counterparty fails to return such collateral. Based on the terms of agreements, collateral may not be required for all derivative contracts.

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

6. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

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

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

 

 

NOTES   TO   FINANCIAL  STATEMENTS

 41


Notes to Financial Statements  (unaudited) (continued)

 

Notes to Financial Statements (unaudited) (continued)

 

Aggregate Average Daily Net Assets Investment Advisory Fee 

First $7 billion

  0.59

Over $7 billion, up to and including $11 billion

  0.54 

Over $11 billion, up to and including $24 billion

  0.49 

Over $24 billion, up to and including $48 billion

  0.44 

Over $48 billion, up to and including $72 billion

  0.40 

Over $72 billion, up to and including $96 billion

  0.36 

Over $96 billion

  0.32 

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

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

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

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

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

The share of securities lending income earned by each Fund is shown as securities lending income – affiliated – net in its statement of operations. For the six months ended February 28, 2021, the Funds paid BTC the following amounts for securities lending agent services:

 

iShares ETF 

Fees Paid

to BTC

 

MSCI Austria

 $17,136 

MSCI Belgium

  2,071 

MSCI France

  24,016 

MSCI Netherlands

  8,842 

MSCI Sweden

  653 

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

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

For the six months ended February 28, 2021, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:

iShares ETF Purchases   Sales   Net Realized
Gain (Loss)
 

MSCI Austria

 $247,155   $602,302   $(286,218

MSCI Belgium

  1,169,219    689,296    (73,953

MSCI France

  1,918,567    1,316,892    (449,044

MSCI Netherlands

  25,625,269    6,419,741    (400,402

MSCI Sweden

  2,291,022    898,441    (257,372

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.

 

 

42 2 0 2 1   I SHARES   SEMI - ANNUAL   REPORT   TO   SHAREHOLDERS


Notes to Financial Statements  (unaudited) (continued)

 

Notes to Financial Statements (unaudited) (continued)

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

 

7. PURCHASES AND SALES

For the six months ended February 28, 2021, purchases and sales of investments, excluding short-term investments and in-kind transactions, were as follows:

 

iShares ETF Purchases   Sales 

MSCI Austria

 $3,059,717   $2,237,063 

MSCI Belgium

  2,051,316    2,286,859 

MSCI France

  17,658,095    20,861,970 

MSCI Netherlands

  65,360,142    65,522,061 

MSCI Sweden

  11,575,114    9,911,739 

For the six months ended February 28, 2021, in-kind transactions were as follows:

 

iShares ETF In-kind
Purchases
   In-kind
Sales
 

MSCI Austria

 $   $2,139,436 

MSCI Belgium

  7,824,664    7,092,989 

MSCI France

  58,643,738    307,048,654 

MSCI Netherlands

  107,389,276    44,164,528 

MSCI Sweden

  136,675,208     

 

8. INCOME TAX INFORMATION

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

Management has analyzed tax laws and regulations and their application to the Funds as of February 28, 2021, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.

As of August 31, 2020, the Funds had non-expiring capital loss carryforwards available to offset future realized capital gains as follows:

 

iShares ETF Non-Expiring 

MSCI Austria

 $41,739,653 

MSCI Belgium

  18,501,985 

MSCI France

  50,747,309 

MSCI Netherlands

  23,177,633 

MSCI Sweden

  36,604,434 

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

As of February 28, 2021, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:

 

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

MSCI Austria

 $65,064,056  $4,230,480  $(10,208,467 $(5,977,987

MSCI Belgium

  41,491,653   3,761,183   (9,375,665  (5,614,482

MSCI France

  807,301,080   73,700,149   (119,949,580  (46,249,431

MSCI Netherlands

  267,377,567   51,277,396   (8,670,949  42,606,447 

MSCI Sweden

  393,370,607   67,679,034   (20,616,121  47,062,913 

 

9. PRINCIPAL RISKS

In the normal course of business, each Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social

 

 

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

 43


Notes to Financial Statements  (unaudited) (continued)

 

instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Funds and their investments. Each Fund’s prospectus provides details of the risks to which the Fund is subject.

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

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

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

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

The price each Fund could receive upon the sale of any particular portfolio investment may differ from each Fund’s valuation of the investment, particularly for securities that trade in thin or volatile markets or that are valued using a fair valuation technique or a price provided by an independent pricing service. Changes to significant unobservable inputs and assumptions (i.e., publicly traded company multiples, growth rate, time to exit) due to the lack of observable inputs.

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

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

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

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

Certain Funds invest a significant portion of their assets in issuers located in a single country or a limited number of countries. When a Fund concentrates its investments in this manner, it assumes the risk that economic, regulatory, political and social conditions in that country or those countries may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio. Foreign issuers may not be subject to the same uniform accounting, auditing and financial reporting standards and practices as used in the United States. Foreign securities markets may also be more volatile and less liquid than U.S. securities and may be less subject to governmental supervision not typically associated with investing in U.S. securities. Investment percentages in specific countries are presented in the schedule of investments.

Certain Funds invest a significant portion of their assets in securities of issuers located in Europe or with significant exposure to European issuers or countries. The European financial markets have recently experienced volatility and adverse trends due to concerns about economic downturns in, or rising government debt levels of, several European countries. These events may spread to other countries in Europe and may affect the value and liquidity of certain of the Funds’ investments.

 

 

44 2 0 2 1   I SHARES   SEMI - ANNUAL   REPORT   TO   SHAREHOLDERS


Notes to Financial Statements  (unaudited) (continued)

 

Responses to the financial problems by European governments, central banks and others, including austerity measures and reforms, may not work, may result in social unrest and may limit future growth and economic recovery or have other unintended consequences. Further defaults or restructurings by governments and others of their debt could have additional adverse effects on economies, financial markets and asset valuations around the world. In addition, the United Kingdom has withdrawn from the European Union, and one or more other countries may withdraw from the European Union and/or abandon the Euro, the common currency of the European Union. The impact of these actions, especially if they occur in a disorderly fashion, is not clear but could be significant and far reaching.

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

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

10. CAPITAL SHARE TRANSACTIONS

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

Transactions in capital shares were as follows:

 

    Six Months Ended
02/28/21
   Year Ended
08/31/20
 
iShares ETF  Shares   Amount   Shares   Amount 

MSCI Austria

        

Shares sold

      $    2,000,000   $36,144,704 

Shares redeemed

   (100,000   (2,170,002   (2,150,000   (33,740,556
  

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease)

   (100,000  $(2,170,002   (150,000  $2,404,148 
  

 

 

   

 

 

   

 

 

   

 

 

 

MSCI Belgium

        

Shares sold

   400,000   $7,857,692    240,000   $4,113,227 

Shares redeemed

   (400,000   (7,136,844   (960,000   (17,568,611
  

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease)

      $720,848    (720,000  $(13,455,384
  

 

 

   

 

 

   

 

 

   

 

 

 

MSCI France

        

Shares sold

   2,000,000   $59,114,400    13,600,000   $404,731,082 

Shares redeemed

   (9,800,000   (308,122,297   (21,800,000   (637,568,448
  

 

 

   

 

 

   

 

 

   

 

 

 

Net decrease

   (7,800,000  $(249,007,897   (8,200,000  $(232,837,366
  

 

 

   

 

 

   

 

 

   

 

 

 

MSCI Netherlands

        

Shares sold

   2,800,000   $107,736,934    4,600,000   $150,728,480 

Shares redeemed

   (1,100,000   (44,339,067   (3,650,000   (112,509,379
  

 

 

   

 

 

   

 

 

   

 

 

 

Net increase

   1,700,000   $63,397,867    950,000   $38,219,101 
  

 

 

   

 

 

   

 

 

   

 

 

 

MSCI Sweden

        

Shares sold

   3,750,000   $140,148,409    3,225,000   $105,874,093 

Shares redeemed

           (3,600,000   (101,276,338
  

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease)

   3,750,000   $140,148,409    (375,000  $4,597,755 
  

 

 

   

 

 

   

 

 

   

 

 

 

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

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

 

 

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

 45


Notes to Financial Statements  (unaudited) (continued)

 

11. FOREIGN WITHHOLDING TAX CLAIMS

The iShares MSCI Sweden ETF has filed claims to recover taxes withheld by Sweden on dividend income based upon certain provisions in the Treaty on the Functioning of the European Union. The Fund has recorded receivables for all recoverable taxes withheld by Sweden based upon previous determinations made by the Swedish tax authorities. Professional and other fees associated with the filing of these claims for foreign withholding taxes have been approved by the Board as appropriate expenses of the Fund. Swedish tax claim receivables and related liabilities are disclosed in the statement of assets and liabilities. Collection of these receivables, and any payment of associated liabilities, depends upon future determinations made by the Swedish tax authorities, the outcome of which is uncertain. If such future determinations are unfavorable, the potential negative impact to the Fund, as of February 28, 2021, is $8,815,525 or $0.83 per share.

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

12. 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.

 

 

46 2 0 2 1   I SHARES   SEMI - ANNUAL   REPORT   TO   SHAREHOLDERS


Statement Regarding Liquidity Risk Management Program  (unaudited)

 

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

The Board of Directors (the “Board”) of the Company, on behalf of the Funds, met on December 2, 2020 (the “Meeting”) to review the Program. The Board previously appointed BlackRock Fund Advisors (“BlackRock”), the investment adviser to the Funds, as the program administrator for each Fund’s Program. BlackRock also previously delegated oversight of the Program to the 40 Act Liquidity Risk Management Committee (the “Committee”). At the Meeting, the Committee, on behalf of BlackRock, provided the Board with a report that addressed the operation of the Program and assessed its adequacy and effectiveness of implementation, including the management of each Fund’s Highly Liquid Investment Minimum (“HLIM”) where applicable, and any material changes to the Program (the “Report”). The Report covered the period from October 1, 2019 through September 30, 2020 (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 referenced the methodology used by BlackRock to establish 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 also discussed notable events affecting liquidity over the Program Reporting Period, including extended market holidays and closures in certain countries and the impact of the coronavirus outbreak on the Funds and the overall market.

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 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 factored a Fund’s concentration in an issuer into the liquidity classification methodology by taking issuer position sizes into account. Derivative exposure was also considered in the calculation of a Fund’s liquidity bucketing. Finally, a factor for consideration under the Liquidity Rule is a Fund’s use of borrowings for investment purposes. However, the Funds do not borrow for investment purposes.

 

 b)

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

 

 c)

Holdings of cash and cash equivalents, as well as borrowing arrangements. The Committee considered that ETFs generally do not hold more than de minimis amounts of cash. While the ETFs generally do not engage in borrowing, certain of the ETFs have the flexibility to draw on a line of credit to meet redemption requests or facilitate settlements.

 

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

As part of BlackRock’s continuous review of the effectiveness of the Program, the Committee made the following enhancements to the Program: (1) certain single country emerging market ETFs were added to a $300 million credit agreement with State Street Bank and Trust Company; and (2) certain updates were made to the RATS and HLIM calculation methodology. The Report provided to the Board stated that the Committee concluded that based on the operation of the functions, as described in the Report, the Program is operating as intended and is effective in implementing the requirements of the Liquidity Rule.

 

 

T A T E M E N T   R E G A R D I N G   L I Q U I D I T Y   R I S K   M A N A G E M E N T   P R O G R A M

 47


Supplemental Information  (unaudited)

 

Regulation Regarding Derivatives

On October 28, 2020, the Securities and Exchange Commission (the “SEC”) adopted new regulations governing the use of derivatives by registered investment companies (“Rule 18f-4”). The Funds will be required to implement and comply with Rule 18f-4 by August 19, 2022. Once implemented, Rule 18f-4 will impose limits on the amount of derivatives a fund can enter into, eliminate the asset segregation framework currently used by funds to comply with Section 18 of the 1940 Act, treat derivatives as senior securities and require funds whose use of derivatives is more than a limited specified exposure amount to establish and maintain a comprehensive derivatives risk management program and appoint a derivatives risk manager.

 

 

48 2 0 2 1   I SHARES   SEMI - ANNUAL   REPORT   TO   SHAREHOLDERS


General Information

 

Electronic Delivery

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

To enroll in electronic delivery:

 

  

Go to icsdelivery.com.

  

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

Householding

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

Availability of Quarterly Schedule of Investments

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

Availability of Proxy Voting Policies and Proxy Voting Records

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

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

 

 

E N E R A L   I N F O R M A T I O N

 49


Glossary of Terms Used in this Report

 

Counterparty Abbreviations

 

SCB  Standard Chartered Bank

Currency Abbreviations

 

EUR  Euro
SEK  Swedish Krona
USD  United States Dollar

 

 

50 2 0 2 1   I SHARES   SEMI - ANNUAL   REPORT   TO   SHAREHOLDERS


 

Want to know more?

iShares.com     |    1-800-474-2737

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

Investing involves risk, including possible loss of principal.

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

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

©2021 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.

iS-SAR-802-0221

 

 

LOGO  LOGO


 

 

LOGO

 FEBRUARY 28, 2021

 

    

  

2021 Semi-Annual Report

(Unaudited)

 

 

iShares, Inc.

 

· 

iShares MSCI Eurozone ETF | EZU | Cboe BZX

 

· 

iShares MSCI Germany ETF | EWG | NYSE Arca

 

· 

iShares MSCI Italy ETF | EWI | NYSE Arca

 

· 

iShares MSCI Spain ETF | EWP | NYSE Arca

 

· 

iShares MSCI Switzerland ETF | EWL | NYSE Arca


The Markets in Review

Dear Shareholder,

The 12-month reporting period as of February 28, 2021 reflected a remarkable period of disruption and adaptation, as the global economy dealt with the implications of the coronavirus (or “COVID-19”) pandemic. As the period began, the threat from the virus was becoming increasingly apparent, and countries around the world took economically disruptive countermeasures. Stay-at-home orders and closures of non-essential businesses became widespread, many workers were laid off, and unemployment claims spiked, causing a global recession and a sharp fall in equity prices.

After markets hit their lowest point of the reporting period in late March 2020, a steady recovery ensued, as businesses began to re-open and governments learned to adapt to life with the virus. Equity prices continued to rise throughout the summer, fed by strong fiscal and monetary support and improving economic indicators. Many equity indices neared or surpassed all-time highs late in the reporting period following the implementation of mass vaccination campaigns and progress of additional stimulus through the U.S. Congress. In the United States, both large- and small-capitalization stocks posted a significant advance. International equities also gained, as both developed countries and emerging markets rebounded substantially from lows in late March 2020.

During the market downturn, the performance of different types of fixed-income securities initially diverged due to a reduced investor appetite for risk. U.S. Treasuries benefited from the risk-off environment, as the 10-year U.S. Treasury yield (which is inversely related to bond prices) dropped to historic lows. However, inflation risk from a rapidly expanding economy raised yields late in the reporting period, leading to a negative overall return for most U.S. Treasuries. In the corporate bond market, support from the U.S. Federal Reserve (the “Fed”) assuaged credit concerns and both investment-grade and high-yield bonds recovered to post positive returns.

Following the coronavirus outbreak, the Fed instituted two emergency interest rate cuts, pushing short-term interest rates, already low as the year began, close to zero. To stabilize credit markets, the Fed also implemented a new bond-buying program, as did several other central banks around the world, including the European Central Bank and the Bank of Japan.

Looking ahead, while coronavirus-related disruptions have clearly hindered worldwide economic growth, we believe that the global expansion will continue to accelerate as vaccination efforts ramp up and pent-up consumer demand leads to higher spending. In early 2021, Congress passed one of the largest economic rescue packages in U.S. history, which should provide a solid tailwind for economic growth. Inflation is likely to increase somewhat as the expansion continues, but a shift in central bank policy means that moderate inflation is less likely to be followed by interest rate hikes that could threaten the equity expansion.

Overall, we favor a positive stance toward risk, with an overweight in equities. We see U.S. and Asian equities outside of Japan benefiting from structural growth trends in tech, while emerging markets should be particularly helped by a vaccine-led economic expansion. While we are neutral overall on credit, rising inflation should provide tailwinds for inflation-protected bonds, and global high-yield and Asian bonds also present attractive opportunities. We believe that international diversification and a focus on sustainability can help provide portfolio resilience, and the disruption created by the coronavirus appears to be accelerating the shift toward sustainable investments.

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

Sincerely,

 

LOGO

Rob Kapito

President, BlackRock, Inc.

LOGO

Rob Kapito

President, BlackRock, Inc.

 

Total Returns as of February 28, 2021

 

 
   
   

  6-Month   

 

 

  12-Month   

 

  

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

 

  9.74  31.29%   
  

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

 

  41.69   51.00 
  

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

 

  14.33   22.46 
  

Emerging market equities
(MSCI Emerging Markets Index)

 

  22.32   36.05 
  

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

 

 

  0.06   0.40 
  

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

 

  (6.34)   (1.96) 
  

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

 

  (1.55)   1.38 
  

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

 

  0.92   1.22 
  

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

 

  6.08   9.31 

 

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

 

 

 

 

 

2 

THIS   PAGE  IS   NOT   PART   OF  YOUR  FUND  REPORT


Table of Contents

 

    

   Page 

 

 

The Markets in Review

   2 

Fund Summary

   4 

About Fund Performance

   9 

Shareholder Expenses

   9 

Schedules of Investments

   10 

Financial Statements

  

Statements of Assets and Liabilities

   25 

Statements of Operations

   27 

Statements of Changes in Net Assets

   29 

Financial Highlights

   32 

Notes to Financial Statements

   37 

Statement Regarding Liquidity Risk Management Program

   45 

Supplemental Information

   46 

General Information

   47 

Glossary of Terms Used in this Report

   48 

 

 

 


Fund Summary as of February 28, 2021  iShares® MSCI Eurozone ETF

 

Investment Objective

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

Performance

 

        Average Annual Total Returns       Cumulative Total Returns 
   6 Months   

 

1 Year

   5 Years  10 Years        1 Year   5 Years   10 Years 

Fund NAV

  15.35   24.11   9.87  4.37   24.11   60.13   53.44

Fund Market

  15.32    22.26    9.99   4.32    22.26    60.97    52.65 

Index

  14.82    23.56    9.86   4.41       23.56    60.03    53.95 

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 9 for more information.

Expense Example

 

Actual     Hypothetical 5% Return       
 

Beginning

Account Value

(09/01/20)

 

 

 

     

Ending

Account Value

(02/28/21)

 

 

 

     

Expenses

Paid During

the Period

 

 

 (a) 

         

Beginning

Account Value

(09/01/20)

 

 

 

     

Ending

Account Value

(02/28/21)

 

 

 

     

Expenses

Paid During

the Period

 

 

 (a) 

     

Annualized

Expense

Ratio

 

 

 

 $      1,000.00      $      1,153.50      $      3.90       $      1,000.00      $      1,021.20      $       3.66      0.73

 

 (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 (181 days) and divided by the number of days in the year (365 days). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” on page 9 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

 

 

Sector

  

Percent of

Total Investments

 

(a) 

Consumer Discretionary

  17.1

Industrials

  14.8 

Financials

  14.8 

Information Technology

  13.2 

Health Care

  8.0 

Consumer Staples

  7.5 

Materials

  7.4 

Utilities

  6.8 

Communication Services

  4.5 

Energy

  4.1 

Real Estate

  1.8 

 

 (a)

Excludes money market funds.

 

TEN LARGEST GEOGRAPHIC ALLOCATION

 

 

Country/Geographic Region

  

Percent of

Total Investments

 

(a) 

France

  33.8

Germany

  28.3 

Netherlands

  14.3 

Spain

  7.5 

Italy

  6.6 

Finland

  3.2 

Belgium

  2.6 

Ireland

  2.1 

Austria

  0.6 

Portugal

  0.5 

 

 

 

 

4 

2 0 2 1  I SHARES  SEMI - ANNUAL    REPORT   TO  SHAREHOLDERS


Fund Summary as of February 28, 2021  iShares® MSCI Germany ETF

 

Investment Objective

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

Performance

 

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

Fund NAV

  8.01   26.72   9.01  4.54    26.72   53.93   55.89

Fund Market

  7.69    24.96    9.07   4.47     24.96    54.36    54.86 

Index

  8.23    26.97    9.20   4.69      26.97    55.26    58.15 

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 9 for more information.

Expense Example

 

Actual     Hypothetical 5% Return       
 

Beginning

Account Value

(09/01/20)

 

 

 

     

Ending

Account Value

(02/28/21)

 

 

 

     

Expenses

Paid During

the Period

 

 

 (a) 

         

Beginning

Account Value

(09/01/20)

 

 

 

     

Ending

Account Value

(02/28/21)

 

 

 

     

Expenses

Paid During

the Period

 

 

 (a) 

     

Annualized

Expense

Ratio

 

 

 

 $      1,000.00      $      1,080.10      $      2.58       $      1,000.00      $      1,022.30      $      2.51      0.50

 

 (a) 

Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” on page 9 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

 

 

Sector  

Percent of

Total Investments(

 

a) 

Consumer Discretionary

  20.0

Industrials

  16.1 

Financials

  14.4 

Information Technology

  13.7 

Health Care

  11.1 

Materials

  8.9 

Communication Services

  5.1 

Real Estate

  4.5 

Utilities

  3.7 

Consumer Staples

  2.5 

 

 (a) 

Excludes money market funds.

 

TEN LARGEST HOLDINGS

 

 

Security  

Percent of

Total Investments

 

(a) 

SAP SE

  8.7

Siemens AG

  8.0 

Allianz SE

  6.7 

BASF SE

  5.1 

Daimler AG

  4.6 

adidas AG

  4.5 

Deutsche Telekom AG

  4.1 

Bayer AG

  4.0 

Infineon Technologies AG

  3.8 

Deutsche Post AG

  3.3 

 

 

 

 

FUND    SUMMARY

 5


Fund Summary as of February 28, 2021  iShares® MSCI Italy ETF

 

Investment Objective

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

Performance

 

        Average Annual Total Returns     Cumulative Total Returns 
   6 Months   

 

1 Year

   5 Years  10 Years        1 Year   5 Years   10 Years 

Fund NAV

  17.73   13.94   9.18  0.84   13.94   55.16   8.69

Fund Market

  17.20    11.86    9.29   0.81    11.86    55.93    8.36 

Index

  17.99    14.39    9.33   0.90       14.39    56.21    9.35 

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

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 9 for more information.

Expense Example

 

Actual     Hypothetical 5% Return       
 

Beginning
Account Value
(09/01/20)
 
 
 
     

Ending
Account Value
(02/28/21)
 
 
 
     

Expenses
Paid During
the Period
 
 
 (a) 
      

Beginning
Account Value
(09/01/20)
 
 
 
     

Ending
Account Value
(02/28/21)
 
 
 
     

Expenses
Paid During
the Period
 
 
 (a) 
     

Annualized
Expense
Ratio
 
 
 
 $      1,000.00      $      1,177.30      $        2.70       $      1,000.00      $      1,022.30      $            2.51      0.50

 

 (a) 

Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” on page 9 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

 

  
Sector Percent of   
Total Investments(a)

Financials

 28.6%

Utilities

 25.3   

Consumer Discretionary

 16.1   

Industrials

 9.3   

Energy

 8.7   

Health Care

 4.4   

Communication Services

 3.3   

Information Technology

 2.2   

Consumer Staples

 2.1   

 

 (a) 

Excludes money market funds.

 

 

TEN LARGEST HOLDINGS

 

  
Security Percent of   
Total Investments(a)

Enel SpA

 19.4%

Intesa Sanpaolo SpA

 10.7   

Stellantis NV

 8.2   

Eni SpA

 7.0   

UniCredit SpA

 4.7   

Assicurazioni Generali SpA

 4.6   

Ferrari NV

 4.5   

CNH Industrial NV

 4.3   

Moncler SpA

 3.5   

Snam SpA

 3.0   
 

 

 

6 

2 0 2 1  I SHARES  SEMI - ANNUAL    REPORT   TO  SHAREHOLDERS


Fund Summary as of February 28, 2021  iShares® MSCI Spain ETF

 

Investment Objective

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

Performance

 

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

Fund NAV

  19.48%(a)   7.36   5.02  (0.16)%    7.36   27.76   (1.55)% 

Fund Market

  18.82   5.49    5.09   (0.18   5.49    28.19    (1.81

Index

  19.56   7.63    5.38   (0.11      7.63    29.93    (1.09

 

 (a) 

The NAV total return presented in the table for the six-months period differs from the same period return disclosed in the financial highlights. The total return in the financial highlights is calculated in the same manner but differs due to certain adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

 

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

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 9 for more information.

Expense Example

 

Actual     Hypothetical 5% Return       
 

Beginning
Account Value
(09/01/20)
 
 
 
     

Ending
Account Value
(02/28/21)
 
 
 
     

Expenses
Paid During
the Period
 
 
 (a) 
      

Beginning
Account Value
(09/01/20)
 
 
 
     

Ending
Account Value
(02/28/21)
 
 
 
     

Expenses
Paid During
the Period
 
 
 (a)  
     

Annualized
Expense
Ratio
 
 
 
 $      1,000.00      $      1,194.80      $        3.32       $      1,000.00      $      1,021.80      $            3.06      0.61

 

 (a) 

Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” on page 9 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

 

Sector

 

 

 

 

Percent of
Total Investments

 

 
(a) 

Utilities

  30.1

Financials

  28.9 

Industrials

  14.8 

Communication Services

  8.9 

Consumer Discretionary

  4.8 

Energy

  4.8 

Information Technology

  4.7 

Health Care

  3.0 

 

 (a) 

Excludes money market funds.

 

 

TEN LARGEST HOLDINGS

 

Security

 

 

 

 

Percent of
Total Investments

 

 
(a) 

Iberdrola SA

  20.2

Banco Santander SA

  16.0 

Banco Bilbao Vizcaya Argentaria SA

  9.1 

Industria de Diseno Textil SA

  4.8 

Repsol SA

  4.8 

Amadeus IT Group SA

  4.7 

Cellnex Telecom SA

  4.6 

Telefonica SA

  4.3 

Ferrovial SA

  4.3 

Aena SME SA

  4.1 
 

 

 

FUND    SUMMARY

 7


Fund Summary as of February 28, 2021  iShares® MSCI Switzerland ETF

 

Investment Objective

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

Performance

 

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

Fund NAV

  3.45   17.24   11.10  7.79   17.24   69.30   111.64

Fund Market

  3.65    15.85    11.24   7.75    15.85    70.37    111.04 

Index

  3.65    17.21    11.30   7.96       17.21    70.78    115.08 

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

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 9 for more information.

Expense Example

 

Actual     Hypothetical 5% Return       
 

Beginning
Account Value
(09/01/20)
 
 
 
     

Ending
Account Value
(02/28/21)
 
 
 
     

Expenses
Paid During
the Period
 
 
 (a) 
      

Beginning
Account Value
(09/01/20)
 
 
 
     

Ending
Account Value
(02/28/21)
 
 
 
     

Expenses
Paid During
the Period
 
 
 (a) 
     

Annualized
Expense
Ratio
 
 
 
 $      1,000.00      $      1,034.50      $        2.52       $      1,000.00      $      1,022.30      $        2.51      0.50

 

 (a) 

Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” on page 9 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

 

  
Sector  
Percent of
Total Investments
 
(a) 

Health Care

  34.0

Consumer Staples

  21.0 

Financials

  18.0 

Industrials

  10.0 

Materials

  8.4 

Consumer Discretionary

  4.7 

Information Technology

  2.1 

Communication Services

  1.1 

Real Estate

  0.7 

 

 (a) 

Excludes money market funds.

 

TEN LARGEST HOLDINGS

 

  
Security  
Percent of
Total Investments
 
(a) 

Nestle SA

  18.9

Roche Holding AG

  14.0 

Novartis AG

  11.3 

Zurich Insurance Group AG

  4.4 

UBS Group AG

  4.0 

ABB Ltd.

  3.8 

Cie. Financiere Richemont SA, Class A

  3.6 

Lonza Group AG

  3.4 

Sika AG

  2.7 

Credit Suisse Group AG

  2.6 
 

 

 

8 

2 0 2 1  I SHARES  SEMI - ANNUAL    REPORT   TO  SHAREHOLDERS


About Fund Performance

 

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

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

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

Shareholder Expenses

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

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

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

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions and other fees 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.

 

 

B O U T  U N D  E R F O R M A N C E / SHAREHOLDER   EXPENSES

  9


Schedule of Investments (unaudited) 

February 28, 2021

  

iShares® MSCI Eurozone ETF

(Percentages shown are based on Net Assets)

 

Security Shares  Value 

Common Stocks

  

Austria — 0.5%

  

Erste Group Bank AG(a)

  255,168  $8,452,338 

OMV AG

  135,386   6,550,254 

Raiffeisen Bank International AG(a)

  132,425   2,703,604 

Verbund AG

  61,650   4,729,305 

voestalpine AG

  104,870   4,180,243 
  

 

 

 
   26,615,744 
Belgium — 2.6%      

Ageas SA/NV

  160,086   9,027,753 

Anheuser-Busch InBev SA/NV

  694,327   39,998,057 

Elia Group SA/NV

  28,357   3,084,007 

Etablissements Franz Colruyt NV

  49,500   2,982,525 

Galapagos NV(a)

  38,797   3,214,486 

Groupe Bruxelles Lambert SA

  103,126   10,284,323 

KBC Group NV(a)

  226,711   16,406,339 

Proximus SADP

  139,816   2,749,280 

Sofina SA

  14,014   4,669,298 

Solvay SA

  67,699   8,307,695 

UCB SA

  114,556   11,463,122 

Umicore SA

  179,987   10,630,663 
  

 

 

 
   122,817,548 
Finland — 3.2%      

Elisa OYJ

  129,918   7,782,222 

Fortum OYJ

  405,527   10,184,211 

Kesko OYJ, Class B

  249,040   6,360,071 

Kone OYJ, Class B

  309,185   24,799,079 

Neste OYJ

  384,926   25,444,973 

Nokia OYJ(a)

  5,162,415   20,678,259 

Orion OYJ, Class B

  95,773   3,948,987 

Sampo OYJ, Class A

  427,867   19,148,248 

Stora Enso OYJ, Class R

  526,202   10,426,842 

UPM-Kymmene OYJ

  487,317   18,691,569 

Wartsila OYJ Abp

  405,285   4,674,365 
  

 

 

 
   152,138,826 
France — 33.8%      

Accor SA(a)

  166,833   6,998,465 

Aeroports de Paris(a)

  26,567   3,392,387 

Air Liquide SA

  431,621   65,330,522 

Airbus SE(a)

  535,203   62,305,953 

Alstom SA(a)

  241,905   12,138,427 

Amundi SA(a)(b)

  55,655   4,255,904 

Arkema SA

  63,024   6,999,615 

Atos SE(a)

  89,748   7,039,452 

AXA SA

  1,761,909   44,482,985 

BioMerieux

  37,804   4,827,259 

BNP Paribas SA(a)

  1,023,484   61,214,570 

Bollore SA

  811,385   3,905,951 

Bouygues SA

  208,153   8,479,139 

Bureau Veritas SA(a)

  268,264   7,290,606 

Capgemini SE

  146,397   23,660,311 

Carrefour SA

  552,821   9,692,799 

Cie. de Saint-Gobain(a)

  463,190   24,973,812 

Cie. Generale des Etablissements Michelin SCA

  154,244   22,419,758 

CNP Assurances(a)

  154,539   2,796,809 

Covivio

  47,433   4,010,041 

Credit Agricole SA(a)

  1,053,576   14,853,616 

Danone SA

  562,366   38,539,585 

Dassault Aviation SA(a)

  2,266   2,456,170 

Dassault Systemes SE

  120,261   25,092,723 
Security Shares  Value 

France (continued)

  

Edenred

  222,089  $12,370,641 

Eiffage SA(a)

  75,827   7,838,025 

Electricite de France SA(a)

  566,819   6,816,752 

Engie SA(a)

  1,661,273   24,368,835 

EssilorLuxottica SA

  259,667   42,549,811 

Eurazeo SE(a)

  35,508   2,644,161 

Eurofins Scientific SE(a)

  120,501   10,770,889 

Faurecia SE(a)

  76,171   3,958,057 

Gecina SA

  41,927   5,837,197 

Getlink SE(a)

  401,808   6,618,286 

Hermes International

  28,828   32,304,083 

Iliad SA

  13,407   2,385,683 

Ipsen SA

  34,722   2,977,584 

Kering SA

  68,933   43,918,840 

Klepierre SA

  179,614   4,262,202 

La Francaise des Jeux SAEM(b)

  78,713   3,572,309 

Legrand SA

  243,733   21,277,036 

L’Oreal SA

  229,245   84,256,391 

LVMH Moet Hennessy Louis Vuitton SE

  252,744   161,059,842 

Natixis SA(a)

  861,219   4,219,023 

Orange SA

  1,813,842   21,021,271 

Orpea SA(a)

  46,758   5,645,973 

Pernod Ricard SA

  190,597   36,402,392 

Publicis Groupe SA

  203,074   11,964,683 

Remy Cointreau SA

  20,929   4,013,772 

Renault SA(a)

  175,501   7,908,483 

Safran SA(a)

  291,903   40,125,816 

Sanofi

  1,032,174   94,966,237 

Sartorius Stedim Biotech

  25,238   11,089,466 

Schneider Electric SE

  490,458   73,134,803 

SCOR SE(a)

  144,825   4,830,670 

SEB SA

  20,443   3,689,799 

SES SA

  352,908   2,834,028 

Societe Generale SA(a)

  735,891   18,342,364 

Sodexo SA(a)

  80,858   7,775,081 

STMicroelectronics NV

  579,588   22,491,019 

Suez SA

  315,572   6,607,462 

Teleperformance

  53,586   19,064,010 

Thales SA

  97,311   9,265,026 

TOTAL SE

  2,294,647   106,883,676 

Ubisoft Entertainment SA(a)

  83,024   6,810,342 

Unibail-Rodamco-Westfield

  126,380   9,329,790 

Valeo SA

  209,049   7,419,465 

Veolia Environnement SA

  492,104   13,350,008 

Vinci SA

  474,627   49,567,835 

Vivendi SE

  754,991   26,181,777 

Wendel SE

  24,432   2,808,382 

Worldline SA(a)(b)

  215,942   19,343,746 
  

 

 

 
   1,594,029,882 
Germany — 26.4%      

adidas AG(a)

  173,271   60,760,387 

Allianz SE, Registered

  374,959   90,934,017 

Aroundtown SA

  911,850   6,656,316 

BASF SE

  836,093   68,735,765 

Bayer AG, Registered

  895,407   54,472,669 

Bayerische Motoren Werke AG

  301,187   26,139,025 

Bechtle AG

  24,960   4,735,335 

Beiersdorf AG

  92,062   9,151,903 

Brenntag SE

  141,092   11,005,005 

Carl Zeiss Meditec AG, Bearer

  36,318   5,479,490 
 

 

 

10 

2 0 2 1  I SHARES  SEMI - ANNUAL    REPORT   TO  SHAREHOLDERS


Schedule of Investments (unaudited) (continued)

February 28, 2021

  

iShares® MSCI Eurozone ETF

(Percentages shown are based on Net Assets)

 

Security Shares  Value 

Germany (continued)

  

Commerzbank AG(a)

  914,785  $6,029,287 

Continental AG(a)

  100,504   14,504,819 

Covestro AG(b)

  167,605   12,198,199 

Daimler AG, Registered

  778,893   62,634,093 

Delivery Hero SE(a)(b)

  117,936   15,131,030 

Deutsche Bank AG, Registered(a)

  1,783,839   22,115,595 

Deutsche Boerse AG

  172,896   28,446,679 

Deutsche Lufthansa AG, Registered(a)(c)

  274,275   4,089,861 

Deutsche Post AG, Registered

  901,218   44,915,466 

Deutsche Telekom AG, Registered

  3,032,249   55,318,571 

Deutsche Wohnen SE

  312,075   14,754,128 

E.ON SE

  2,040,474   20,928,345 

Evonik Industries AG

  191,463   6,481,574 

Fresenius Medical Care AG & Co. KGaA

  194,574   13,546,935 

Fresenius SE & Co. KGaA

  381,739   16,421,293 

GEA Group AG

  140,108   4,867,205 

Hannover Rueck SE

  55,091   9,381,784 

HeidelbergCement AG

  135,905   10,801,678 

HelloFresh SE(a)

  134,779   10,551,861 

Henkel AG & Co. KGaA

  94,892   8,454,205 

HOCHTIEF AG

  22,310   1,999,849 

Infineon Technologies AG

  1,188,404   51,929,449 

KION Group AG

  65,726   5,579,688 

Knorr-Bremse AG

  66,199   8,480,386 

LANXESS AG

  75,865   5,646,648 

LEG Immobilien AG

  65,102   8,940,414 

Merck KGaA

  117,412   19,175,350 

MTU Aero Engines AG

  48,460   11,587,687 

Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen, Registered

  127,628   37,644,311 

Nemetschek SE

  52,513   3,324,055 

Puma SE(a)

  89,518   9,559,638 

Rational AG

  4,686   4,032,697 

RWE AG

  584,240   22,224,776 

SAP SE

  950,678     117,770,391 

Scout24 AG(b)

  98,262   7,448,437 

Siemens AG, Registered

  696,461   108,189,725 

Siemens Healthineers AG(b)

  245,455   13,654,282 

Symrise AG

  116,721   13,702,897 

TeamViewer AG(a)(b)

  146,580   7,917,386 

Telefonica Deutschland Holding AG

  960,299   2,576,000 

Uniper SE

  183,760   6,468,388 

United Internet AG, Registered(d)

  97,760   4,328,756 

Volkswagen AG

  29,633   6,967,105 

Vonovia SE

  489,633   31,344,252 

Zalando SE(a)(b)

  138,606   14,303,761 
  

 

 

 
   1,244,438,848 
Ireland — 2.1%      

CRH PLC(a)

  714,348   31,041,305 

Flutter Entertainment PLC(a)

  148,373   28,716,170 

Kerry Group PLC, Class A

  145,171   17,612,045 

Kingspan Group PLC(a)

  140,630   10,284,475 

Smurfit Kappa Group PLC

  223,511   10,624,015 
  

 

 

 
   98,278,010 
Italy — 6.6%      

Amplifon SpA(a)

  113,517   4,546,968 

Assicurazioni Generali SpA(a)

  1,002,012   18,912,565 

Atlantia SpA(a)

  452,439   8,525,871 

CNH Industrial NV(a)

  934,403   13,882,342 
Security Shares  Value 

Italy (continued)

  

DiaSorin SpA

  22,767  $4,487,856 

Enel SpA

  7,404,478   70,498,381 

Eni SpA

  2,297,619   26,443,874 

Ferrari NV

  114,627   22,470,180 

FinecoBank Banca Fineco SpA(a)

  562,349   9,945,179 

Infrastrutture Wireless Italiane SpA(b)

  306,475   3,204,774 

Intesa Sanpaolo SpA(a)

  15,057,282   39,002,110 

Mediobanca Banca di Credito Finanziario SpA(a)

  560,940   5,867,728 

Moncler SpA(a)

  176,900   11,015,198 

Nexi SpA(a)(b)

  401,829   7,260,010 

Poste Italiane SpA(b)

  477,023   5,445,015 

Prysmian SpA

  220,397   7,140,052 

Recordati Industria Chimica e Farmaceutica SpA

  95,564   4,888,054 

Snam SpA

  1,835,559   9,571,494 

Telecom Italia SpA/Milano

  7,646,881   3,646,813 

Tenaris SA

  432,810   4,542,131 

Terna Rete Elettrica Nazionale SpA

  1,284,691   8,994,376 

UniCredit SpA(a)

  1,930,619   20,012,510 
  

 

 

 
     310,303,481 
Netherlands — 14.2%      

ABN AMRO Bank NV, CVA(a)(b)

  379,395   4,384,052 

Adyen NV(a)(b)

  16,568   38,531,215 

Aegon NV

  1,633,809   7,845,212 

Akzo Nobel NV

  175,290   18,204,344 

ArcelorMittal SA(a)

  654,536   15,379,462 

Argenx SE(a)

  40,840   13,761,073 

ASM International NV

  43,644   11,845,229 

ASML Holding NV

  387,530   218,893,142 

Davide Campari-Milano NV

  526,069