2021 Semi-Annual Report (Unaudited)

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FEBRUARY 28, 2021

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 unemploy- ment 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 Rob Kapito economic indicators. Many equity indices neared or surpassed all-time highs late in the reporting period President, BlackRock, Inc. 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 re- Total Returns as of February 28, 2021 bounded substantially from lows in late March 2020. 6-Month 12-Month During the market downturn, the performance of different types of fixed-income securities initially U.S. large cap equities diverged due to a reduced investor appetite for risk. U.S. Treasuries benefited from the risk-off environ- 9.74% 31.29% ment, as the 10-year U.S. Treasury yield (which is inversely related to bond prices) dropped to historic (S&P 500 Index) lows. However, inflation risk from a rapidly expanding economy raised yields late in the reporting period, U.S. small cap equities 41.69 51.00 leading to a negative overall return for most U.S. Treasuries. In the corporate bond market, support from (Russell 2000 Index) the U.S. Federal Reserve (the “Fed”) assuaged credit concerns and both investment-grade and high-yield bonds recovered to post positive returns. International equities (MSCI Europe, Australasia, 14.33 22.46 Following the coronavirus outbreak, the Fed instituted two emergency interest rate cuts, pushing Far East Index) 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, Emerging market equities including the European Central Bank and the Bank of Japan. (MSCI Emerging Markets 22.32 36.05 Index) 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 3-month Treasury bills pent-up consumer demand leads to higher spending. In early 2021, Congress passed one of the largest (ICE BofA 3-Month 0.06 0.40 economic rescue packages in U.S. history, which should provide a solid tailwind for economic growth. U.S. Treasury Bill Index) 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 U.S. Treasury securities (ICE BofA 10-Year (6.34) (1.96) equity expansion. U.S. Treasury Index) 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 U.S. investment grade bonds be particularly helped by a vaccine-led economic expansion. While we are neutral overall on credit, rising (Bloomberg Barclays (1.55) 1.38 inflation should provide tailwinds for inflation-protected bonds, and global high-yield and Asian bonds also U.S. Aggregate Bond Index) present attractive opportunities. We believe that international diversification and a focus on sustainability Tax-exempt municipal bonds 0.92 1.22 can help provide portfolio resilience, and the disruption created by the coronavirus appears to be (S&P Municipal Bond Index) accelerating the shift toward sustainable investments. U.S. high yield bonds In this environment, our view is that investors need to think globally, extend their scope across a broad (Bloomberg Barclays 6.08 9.31 array of asset classes, and be nimble as market conditions change. We encourage you to talk with your U.S. Corporate High Yield 2% financial advisor and visit iShares.com for further insight about investing in today’s markets. Issuer Capped Index)

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

Rob Kapito President, BlackRock, Inc.

2 T H I S P A G E I S NO T P ART O F Y OUR F U ND R E P O RT Table of Contents

Page The Markets in Review ...... 2 Fund Summary ...... 4 About Fund Performance ...... 7 Shareholder Expenses ...... 7 Schedules of Investments ...... 8 Financial Statements Statements of Assets and Liabilities ...... 19 Statements of Operations ...... 20 Statements of Changes in Net Assets ...... 21 Financial Highlights ...... 23 Notes to Financial Statements ...... 26 Statement Regarding Liquidity Risk Management Program ...... 34 Supplemental Information ...... 35 General Information ...... 36 Glossary of Terms Used in this Report ...... 37 Fund Summary as of February 28, 2021 iShares Currency Hedged MSCI United Kingdom ETF

Investment Objective

The iShares Currency Hedged MSCI United Kingdom ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization United Kingdom equities while mitigating exposure to fluctuations between the value of the British pound and the U.S. dollar, as represented by the MSCI United Kingdom 100% Hedged to USD Index (the "Index"). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. The Fund currently seeks to achieve its investment objective by investing a substantial portion of its assets in one underlying fund, the iShares MSCI United Kingdom ETF.

Performance

Average Annual Total Returns Cumulative Total Returns Since Since 6 Months 1 Year 5 Years Inception 1 Year 5 Years Inception Fund NAV...... 11.22%(1.09)% 5.46% 3.60%(1.09)% 30.47% 22.18% Fund Market ...... 11.05 (0.77) 5.46 3.59 (0.77) 30.46 22.17 Index ...... 10.64 0.85 5.93 4.09 0.85 33.40 25.49

The inception date of the Fund was 6/29/15. The first day of secondary market trading was 7/1/15. 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 7 for more information.

Expense Example

Actual Hypothetical 5% Return Beginning Ending Expenses Beginning Ending Expenses Annualized Account Value Account Value Paid During Account Value Account Value Paid During Expense (09/01/20) (02/28/21) the Period (a)(b) (09/01/20) (02/28/21) the Period (a)(b) Ratio (a) $ 1,000.00 $ 1,112.20 $ 0.00 $ 1,000.00 $ 1,024.80 $ 0.00 0.00%

(a) Annualized expense ratio and expenses paid during the period do not include fees and expenses of the underlying fund in which the Fund invests. (b) Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (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 7 for more information. Portfolio Information

ALLOCATION BY INVESTMENT TYPE ALLOCATION BY SECTOR (of the UNDERLYING FUND) Percent of Percent of Investment Type Net Assets Sector Total Investment(a) Investment Companies ...... 99.6% Financials ...... 19.6% Forward foreign currency exchange contracts, net cumulative Consumer Staples ...... 19.3 depreciation...... (1.5) Materials ...... 13.2 Other assets less liabilities...... 1.9 Energy ...... 10.4 Health Care ...... 10.2 Industrials ...... 10.2 Consumer Discretionary...... 7.0 Communication Services...... 4.5 Utilities ...... 3.3 Real Estate...... 1.2 Information Technology ...... 1.1

(a) Excludes money market funds.

4 2021 I S HARES S E MI-AN N U AL R EPO RT TO S H AREHO LDERS Fund Summary as of February 28, 2021 iShares MSCI United Kingdom ETF

Investment Objective

The iShares MSCI United Kingdom ETF (the “Fund”) seeks to track the investment results of an index composed of U.K. equities, as represented by the MSCI United Kingdom 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...... 14.54% 8.58% 4.20% 2.20% 8.58% 22.83% 24.26% Fund Market ...... 15.31 6.39 4.35 2.08 6.39 23.73 22.91 Index ...... 14.84 9.21 4.75 2.739.21 26.1030.89

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 7 for more information.

Expense Example

Actual Hypothetical 5% Return Beginning Ending Expenses Beginning Ending Expenses Annualized Account Value Account Value Paid During Account Value Account Value Paid During Expense (09/01/20) (02/28/21) the Period (a) (09/01/20) (02/28/21) the Period (a) Ratio $ 1,000.00 $ 1,145.40 $ 2.66 $ 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 7 for more information. Portfolio Information

ALLOCATION BY SECTOR TEN LARGEST HOLDINGS Percent of Percent of Sector Total Investments(a) Security Total Investments(a) Financials ...... 19.6% Unilever PLC ...... 6.0% Consumer Staples ...... 19.3 AstraZeneca PLC...... 5.6 Materials ...... 13.2 HSBC Holdings PLC ...... 5.3 Energy ...... 10.4 Rio Tinto PLC ...... 4.3 Health Care ...... 10.2 Diageo PLC ...... 4.0 Industrials ...... 10.2 GlaxoSmithKline PLC ...... 3.7 Consumer Discretionary ...... 7.0 Royal Dutch Shell PLC, Class A ...... 3.6 Communication Services...... 4.5 BP PLC ...... 3.6 Utilities...... 3.3 British American Tobacco PLC...... 3.5 Real Estate...... 1.2 Royal Dutch Shell PLC, Class B ...... 3.2 Information Technology ...... 1.1

(a) Excludes money market funds.

F U ND S U MMARY 5 Fund Summary as of February 28, 2021 iShares MSCI United Kingdom Small-Cap ETF

Investment Objective

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

Performance

Average Annual Total Returns Cumulative Total Returns Since Since 6 Months 1 Year 5 Years Inception 1 Year 5 Years Inception Fund NAV...... 25.48% 20.30% 7.52% 9.24% 20.30% 43.72% 123.47% Fund Market ...... 26.71 18.97 7.74 9.27 18.9745.18 123.91 Index ...... 25.79 20.98 8.17 9.90 20.98 48.12 136.11

The inception date of the Fund was 1/25/12. The first day of secondary market trading was 1/26/12.

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.

Expense Example

Actual Hypothetical 5% Return Beginning Ending Expenses Beginning Ending Expenses Annualized Account Value Account Value Paid During Account Value Account Value Paid During Expense (09/01/20) (02/28/21) the Period (a) (09/01/20) (02/28/21) the Period (a) Ratio $ 1,000.00 $ 1,254.80 $ 3.30 $ 1,000.00 $ 1,021.90 $ 2.96 0.59%

ALLOCATION BY SECTOR TEN LARGEST HOLDINGS Percent of Percent of Sector Total Investments(a) Security Total Investments(a) Industrials ...... 23.0% DS Smith PLC...... 1.5% Consumer Discretionary ...... 18.8 Weir Group PLC (The) ...... 1.4 Financials ...... 13.6 Intermediate Capital Group PLC...... 1.4 Real Estate...... 10.6 Rightmove PLC...... 1.3 Information Technology ...... 7.6 B&M European Value Retail SA ...... 1.3 Materials ...... 6.6 Electrocomponents PLC ...... 1.2 Health Care ...... 6.6 ASOS PLC ...... 1.1 Communication Services...... 5.3 Howden Joinery Group PLC...... 1.1 Consumer Staples ...... 3.6 Royal Mail PLC...... 1.1 Utilities...... 2.6 ITV PLC...... 1.1 Energy ...... 1.7

(a) Excludes money market funds.

6 2021 I S HARES S E MI-AN N U AL R EPO RT TO S H AREHO LDERS 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. Since shares of a fund may not trade in the secondary market until after the fund’s inception, for the period from inception to the first day of secondary market trading in shares of the fund, the NAV of the fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.

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

Shareholder Expenses

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

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

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

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

A BOUT F U ND P E RFO RMANC E /SH AREHO LDER E X PENS E S 7 Schedule of Investments (unaudited) iShares Currency Hedged MSCI United Kingdom ETF February 28, 2021 (Percentages shown are based on Net Assets)

Security s Value Investment Companies (a) Affiliate of the Fund. Exchange-Traded Funds — 99.6% iShares MSCI United Kingdom ETF(a) ...... 239,245 $ 7,265,871

Total Investment Companies — 99.6% (Cost: $7,994,697) ...... 7,265,871

Total Investments in Securities — 99.6% (Cost: $7,994,697) ...... 7,265,871 Other Assets, Less Liabilities — 0.4% ...... 26,747

Net Assets — 100.0% ...... $ 7,292,618

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:

Capital Gain Change in Distributions Unrealized Shares from Value at Purchases Proceeds Net Realized Appreciation Value at Held at Underlying Affiliated Issuer 08/31/20 at Cost from Sales Gain (Loss) (Depreciation) 02/28/21 02/28/21 Income Funds BlackRock Cash Funds: Treasury, SL Agency Shares(a) ...... $ — $ — $ — $ — $ — $ — —$ 23 $ — iShares MSCI United Kingdom ETF...... 10,400,203 1,716,926 (6,220,942) (671,101) 2,040,785 7,265,871 239,245 106,823 — $ (671,101) $ 2,040,785 $7,265,871 $106,846 $ —

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

Forward Foreign Currency Exchange Contracts

Unrealized Appreciation Currency Purchased Currency Sold CounterpartySettlement Date (Depreciation) USD 7,445,068 GBP 5,324,000 MS 04/07/21...... $ 26,002 GBP 5,324,000 USD 7,443,459 MS 03/03/21...... (26,032) USD 7,307,520 GBP 5,324,000 MS 03/03/21 ...... (109,908) GBP 77,000 USD 107,431 MS 04/07/21...... (131) (136,071) Net unrealized depreciation ...... $ (110,069)

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:

Foreign Currency Exchange Contracts Assets — Derivative Financial Instruments Forward foreign currency exchange contracts Unrealized appreciation on forward foreign currency exchange contracts...... $ 26,002 Liabilities — Derivative Financial Instruments Forward foreign currency exchange contracts Unrealized depreciation on forward foreign currency exchange contracts...... $136,071

8 2021 I S HARES S E MI-AN N U AL R EPO RT TO S H AREHO LDERS Schedule of Investments (unaudited) (continued) iShares Currency Hedged MSCI United Kingdom ETF February 28, 2021

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

Foreign Currency Exchange Contracts Net Realized Gain (Loss) from: Forward foreign currency exchange contracts...... $(429,638) Net Change in Unrealized Appreciation (Depreciation) on: Forward foreign currency exchange contracts...... $ 117,533

Average Quarterly Balances of Outstanding Derivative Financial Instruments

Forward foreign currency exchange contracts: Average amounts purchased — in USD...... $11,296,193 Average amounts sold — in USD...... $20,136,724 For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

Derivative Financial Instruments - Offsetting as of Period End The Fund's derivative assets and liabilities (by type) were as follows:

Assets Liabilities Derivative Financial Instruments: Forward foreign currency exchange contracts ...... $ 26,002 $136,071 Total derivative assets and liabilities in the Statement of Assets and Liabilities...... 26,002 136,071 Derivatives not subject to a Master Netting Agreement or similar agreement ("MNA")...... — — Total derivative assets and liabilities subject to an MNA ...... 26,002 136,071

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:

Derivative Assets Subject to Derivatives Net Amount an MNA by Available of Derivative Counterparty Counterparty for Offset(a) Assets Morgan Stanley & Co. International PLC...... $ 26,002 $(26,002) $ —

Derivative Liabilities Subject to Derivatives Net Amount an MNA by Available of Derivative Counterparty Counterparty for Offset(a) Liabilities(b) Morgan Stanley & Co. International PLC...... $136,071 $(26,002) $110,069

(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.

S C HEDU LE O F I NVES TMENTS 9 Schedule of Investments (unaudited) (continued) iShares Currency Hedged MSCI United Kingdom ETF February 28, 2021

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 Investment Companies ...... $7,265,871 $ — $ — $7,265,871 Derivative financial instruments(a) Assets Forward Foreign Currency Exchange Contracts...... $ — $ 26,002 $ — $ 26,002 Liabilities Forward Foreign Currency Exchange Contracts...... — (136,071) — (136,071) $ — $ (110,069) $ — $ (110,069)

(a) Shown at the unrealized appreciation (depreciation) on the contracts. See notes to financial statements.

10 2021 I S HARES S E MI-AN N U AL R E P O RT TO S H AREHO LDERS Schedule of Investments (unaudited) iShares MSCI United Kingdom ETF February 28, 2021 (Percentages shown are based on Net Assets)

Security s Value Securitys Value Common Stocks Hotels, Restaurants & Leisure — 3.0% Compass Group PLC(a) ...... 2,438,490 $ 49,604,658 Aerospace & Defense — 1.5% Entain PLC(a) ...... 795,939 15,723,906 BAE Systems PLC ...... 4,402,797 $ 29,786,726 InterContinental Hotels Group PLC(a) ...... 236,631 16,548,317 Rolls-Royce Holdings PLC(a) ...... 11,413,354 17,185,710 Whitbread PLC(a) ...... 276,575 13,127,777 46,972,436 95,004,658 Banks — 9.9% Household Durables — 1.6% Barclays PLC ...... 23,711,717 52,909,588 Barratt Developments PLC(a) ...... 1,394,533 12,953,792 HSBC Holdings PLC(a) ...... 27,832,825 165,847,613 Berkeley Group Holdings PLC ...... 172,218 9,758,737 Lloyds Banking Group PLC(a)...... 96,764,039 52,761,494 Persimmon PLC ...... 435,009 15,752,029 Natwest Group PLC(a)...... 6,615,168 17,036,054 Taylor Wimpey PLC(a) ...... 4,970,719 10,952,516 Standard Chartered PLC(a) ...... 3,659,192 23,640,663 49,417,074 312,195,412 Household Products — 2.6% Beverages — 4.3% Reckitt Benckiser Group PLC...... 971,940 81,532,207 Coca-Cola HBC AG ...... 273,084 8,544,661 Diageo PLC ...... 3,194,275 125,603,957 Industrial Conglomerates — 1.2% 134,148,618 DCC PLC...... 134,896 10,882,117 (a) Capital Markets — 3.9% Melrose Industries PLC ...... 6,664,238 15,457,362 3i Group PLC ...... 1,333,879 20,644,413 Smiths Group PLC ...... 542,874 11,111,651 Hargreaves Lansdown PLC ...... 452,818 9,562,752 37,451,130 London Stock Exchange Group PLC ...... 432,217 58,119,933 Insurance — 5.3% Schroders PLC ...... 169,461 8,299,433 Admiral Group PLC ...... 261,581 11,293,329 St. James's Place PLC ...... 734,853 12,061,659 Aviva PLC ...... 5,357,348 27,106,718 Standard Life Aberdeen PLC ...... 3,013,741 13,095,601 Direct Line Insurance Group PLC ...... 1,861,153 8,342,267 121,783,791 Legal & General Group PLC...... 8,165,948 29,603,810 Chemicals — 0.9% Phoenix Group Holdings PLC...... 755,754 7,502,004 Croda International PLC...... 190,910 16,463,097 Prudential PLC ...... 3,565,145 70,205,727 Johnson Matthey PLC...... 263,967 11,274,553 RSA Insurance Group PLC ...... 1,411,047 13,324,196 27,737,650 167,378,051 Commercial Services & Supplies — 0.5% Interactive Media & Services — 0.3% (c) Rentokil Initial PLC(a)...... 2,529,231 16,503,072 Auto Trader Group PLC ...... 1,325,687 10,197,649

Diversified Financial Services — 0.3% Internet & Direct Marketing Retail — 0.6% (a) M&G PLC ...... 3,546,107 9,117,422 Ocado Group PLC ...... 663,054 20,394,359

Diversified Telecommunication Services — 0.7% Machinery — 0.5% BT Group PLC(a) ...... 12,173,832 21,028,512 Spirax-Sarco Engineering PLC ...... 100,560 15,057,512

Electric Utilities — 0.8% Media — 1.5% (a) SSE PLC ...... 1,423,073 26,352,246 Informa PLC ...... 2,048,858 15,777,721 Pearson PLC ...... 1,026,787 10,780,994 Electronic Equipment, Instruments & Components — 0.5% WPP PLC ...... 1,680,677 20,062,216 Halma PLC ...... 517,807 16,411,865 46,620,931 Equity Real Estate Investment Trusts (REITs) — 1.2% Metals & Mining — 11.6% British Land Co. PLC (The) ...... 1,200,747 8,219,235 Anglo American PLC ...... 1,676,410 64,981,583 Land Securities Group PLC ...... 962,904 8,952,475 Antofagasta PLC...... 537,805 13,402,717 Segro PLC ...... 1,624,403 20,662,279 BHP Group PLC ...... 2,886,249 91,580,387 Evraz PLC...... 702,162 5,605,469 37,833,989 Fresnillo PLC ...... 253,577 3,226,188 Food & Staples Retailing — 1.5% Glencore PLC(a) ...... 13,657,475 55,507,790 J Sainsbury PLC...... 2,420,150 7,653,734 Rio Tinto PLC...... 1,533,303 132,631,473 Tesco PLC...... 10,570,986 33,223,876 Wm Morrison Supermarkets PLC ...... 3,282,744 7,841,344 366,935,607 Multi-Utilities — 1.7% 48,718,954 National Grid PLC ...... 4,810,514 54,235,106 Food Products — 0.5% (a) Associated British Foods PLC ...... 485,660 16,078,759 Multiline Retail — 0.6% Next PLC(a)...... 182,297 19,268,141 Health Care Equipment & Supplies — 0.7% Smith & Nephew PLC ...... 1,194,222 23,132,900 Oil, Gas & Consumable Fuels — 10.3% BP PLC ...... 27,691,508 112,952,530 Health Care Providers & Services — 0.0% Royal Dutch Shell PLC, Class A ...... 5,604,603 113,211,639 NMC Health PLC(a)(b) ...... 122,262 2

S C HEDU LE O F I NVES TMENTS 11 Schedule of Investments (unaudited) (continued) iShares MSCI United Kingdom ETF February 28, 2021 (Percentages shown are based on Net Assets)

Security s Value Securitys Value

Oil, Gas & Consumable Fuels (continued) Trading Companies & Distributors (continued) Royal Dutch Shell PLC, Class B ...... 5,064,715 $ 98,255,709 Bunzl PLC...... 459,404 $ 14,368,097 324,419,878 Ferguson PLC ...... 307,552 36,256,647 Paper & Forest Products — 0.5% 83,982,646 Mondi PLC ...... 662,221 15,966,313 Water Utilities — 0.7% Severn Trent PLC...... 325,593 9,969,139 Personal Products — 6.0% United Utilities Group PLC...... 934,864 11,230,037 Unilever PLC ...... 3,593,007 187,523,001 21,199,176 Pharmaceuticals — 9.4% Wireless Telecommunication Services — 2.0% AstraZeneca PLC...... 1,793,281 174,124,181 Vodafone Group PLC ...... 36,656,714 62,534,984 GlaxoSmithKline PLC ...... 6,856,495 114,150,937 Hikma Pharmaceuticals PLC ...... 235,693 7,368,125 Total Common Stocks — 98.9% (Cost: $3,475,774,096)...... 3,116,649,572 295,643,243 Professional Services — 3.8% Short-Term Investments Experian PLC...... 1,252,819 39,813,124 Intertek Group PLC ...... 220,083 16,480,317 Money Market Funds — 0.1% RELX PLC...... 2,639,812 62,465,492 BlackRock Cash Funds: Treasury, SL Agency Shares, (d)(e) 118,758,933 0.00% ...... 1,270,000 1,270,000 Software — 0.6% Total Short-Term Investments — 0.1% AVEVA Group PLC...... 156,473 7,427,072 (Cost: $1,270,000)...... 1,270,000 Sage Group PLC (The)...... 1,495,384 11,678,637 19,105,709 Total Investments in Securities — 99.0% Specialty Retail — 0.6% (Cost: $3,477,044,096)...... 3,117,919,572 JD Sports Fashion PLC(a) ...... 704,581 8,180,065 Other Assets, Less Liabilities — 1.0% ...... 32,424,943 Kingfisher PLC(a)...... 2,890,471 10,725,265 Net Assets — 100.0% ...... $ 3,150,344,515 18,905,330 Textiles, Apparel & Luxury Goods — 0.4% (a) Non-income producing security. Burberry Group PLC(a) ...... 551,973 14,010,466 (b) Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy. Tobacco — 4.2% (c) Security exempt from registration pursuant to Rule 144A under the Securities Act of British American Tobacco PLC...... 3,135,204 108,947,699 1933, as amended. These securities may be resold in transactions exempt from Imperial Brands PLC ...... 1,295,517 24,144,141 registration to qualified institutional investors. (d) Affiliate of the Fund. 133,091,840 (e) Annualized 7-day yield as of period-end. Trading Companies & Distributors — 2.7% Ashtead Group PLC...... 614,934 33,357,902

Capital Gain Change in Distributions Unrealized Shares from Value at Purchases Proceeds Net Realized Appreciation Value at Held at Underlying Affiliated Issuer 08/31/20 at Cost from Sales Gain (Loss) (Depreciation) 02/28/21 02/28/21 Income Funds BlackRock Cash Funds: Institutional, SL Agency Shares(a) ...... $1,317,900 $ — $(1,315,614)(b) $ (2,606) $ 320 $ — — $ 1,680(c) $ — BlackRock Cash Funds: Treasury, SL Agency Shares ...... 800,000 470,000(b) — — — 1,270,0001,270,000 500 — $ (2,606) $ 320 $1,270,000 $ 2,180 $ —

(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.

12 2021 I S HARES S E MI-AN N U AL R EPO RT TO S H AREHO LDERS Schedule of Investments (unaudited) (continued) iShares MSCI United Kingdom ETF February 28, 2021

Futures Contracts

Value/ Notional Unrealized Number of Expiration Amount Appreciation Description Contracts Date (000) (Depreciation) Long Contracts FTSE 100 Index...... 359 03/19/21 $32,321 $ (772,496)

Equity Contracts Liabilities — Derivative Financial Instruments Futures contracts Unrealized depreciation on futures contracts(a) ...... $772,496

(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...... $ 585,292 Net Change in Unrealized Appreciation (Depreciation) on: Futures contracts...... $(181,545)

Average Quarterly Balances of Outstanding Derivative Financial Instruments

Futures contracts: Average notional value of contracts — long ...... $22,565,488 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 ...... $3,116,649,570 $ — $ 2 $3,116,649,572 Money Market Funds...... 1,270,000 — — 1,270,000 $3,117,919,570 $ — $ 2 $3,117,919,572 Derivative financial instruments(a) Liabilities Futures Contracts ...... $ (772,496) $ — $ — $ (772,496)

(a) Shown at the unrealized appreciation (depreciation) on the contracts. See notes to financial statements.

S C HEDU LE O F I NVES TMENTS 13 Schedule of Investments (unaudited) iShares MSCI United Kingdom Small-Cap ETF February 28, 2021 (Percentages shown are based on Net Assets)

Security s Value Security s Value Common Stocks Capital Markets (continued) Ninety One PLC...... 67,504 $ 207,064 Aerospace & Defense — 2.1% Numis Corp. PLC ...... 11,433 53,069 Avon Rubber PLC...... 5,556 $ 217,888 Quilter PLC(c) ...... 320,162 653,523 Meggitt PLC(a) ...... 139,777 827,027 Rathbone Brothers PLC ...... 10,357 223,284 QinetiQ Group PLC ...... 102,805 429,471 Sanne Group PLC ...... 26,551 218,271 Senior PLC(a) ...... 75,390 107,827 TP ICAP Group PLC ...... 137,972 462,957 Ultra Electronics Holdings PLC ...... 12,709 339,733 7,473,576 1,921,946 Chemicals — 1.3% Air Freight & Logistics — 1.1% Elementis PLC(a) ...... 102,985 181,563 Royal Mail PLC(a) ...... 161,122 1,019,774 Essentra PLC(a) ...... 53,850 220,593 Airlines — 1.0% Synthomer PLC ...... 60,843 391,128 easyJet PLC(a) ...... 24,922 343,417 Victrex PLC ...... 15,567 460,531 JET2 PLC(a) ...... 28,781 585,071 1,253,815 928,488 Commercial Services & Supplies — 3.9% Auto Components — 0.2% Aggreko PLC ...... 45,849 512,812 (a) AB Dynamics PLC(b) ...... 2,619 69,205 Babcock International Group PLC ...... 44,923 163,110 (a)(c) TI Fluid Systems PLC(c) ...... 41,629 154,467 Biffa PLC ...... 55,080 196,369 Calisen PLC(a) ...... 22,501 82,013 223,672 Clipper Logistics PLC ...... 13,622 112,746 Automobiles — 0.4% G4S PLC(a) ...... 277,629 942,436 Aston Martin Lagonda Global Holdings PLC(a)(b)(c) ...... 12,421 348,705 HomeServe PLC ...... 54,140 787,966 Banks — 1.5% Mitie Group PLC(a) ...... 207,412 151,661 Bank of Georgia Group PLC(a) ...... 7,144 99,681 Restore PLC(a) ...... 19,833 95,386 Close Brothers Group PLC ...... 27,028 587,601 Serco Group PLC(a) ...... 221,564 402,699 TBC Bank Group PLC(a) ...... 7,505 113,951 Smart Metering Systems PLC...... 19,491 189,663 Virgin Money UK PLC(a)(b) ...... 231,696 595,392 3,636,861 1,396,625 Communications Equipment — 0.4% Beverages — 1.6% Spirent Communications PLC...... 109,518 360,591 AG Barr PLC(a)...... 18,354 128,561 Construction & Engineering — 1.2% Britvic PLC...... 47,692 539,760 Balfour Beatty PLC(a) ...... 124,177 478,127 C&C Group PLC(a) ...... 56,325 202,776 John Laing Group PLC(c) ...... 88,662 373,859 Fevertree Drinks PLC ...... 18,733 596,884 Keller Group PLC ...... 13,091 143,675 1,467,981 Morgan Sindall Group PLC ...... 6,914 159,497 Biotechnology — 2.2% 1,155,158 Abcam PLC...... 38,304 908,256 Construction Materials — 1.5% Avacta Group PLC(a) ...... 45,886 125,099 Breedon Group PLC(a)...... 271,881 354,269 Genus PLC ...... 11,649 820,024 Forterra PLC(a)(c) ...... 41,455 150,112 Oxford Biomedica PLC(a) ...... 10,434 147,628 Ibstock PLC(a)(c)...... 72,846 217,339 Silence Therapeutics PLC(a) ...... 4,809 39,669 Marshalls PLC(a) ...... 35,809 341,441 2,040,676 Rhi Magnesita NV...... 5,247 288,005 Building Products — 0.3% 1,351,166 Polypipe Group PLC(a) ...... 40,768 314,058 Consumer Finance — 0.3% Capital Markets — 8.0% Funding Circle Holdings PLC(a)(c) ...... 31,739 61,680 AJ Bell PLC...... 51,396 303,595 Provident Financial PLC(a) ...... 45,832 179,802 Alpha FX Group PLC(a) ...... 4,713 85,660 241,482 Alternative Credit Investments PLC ...... 13,329 162,127 Containers & Packaging — 1.5% Ashmore Group PLC ...... 76,555 441,398 DS Smith PLC(a) ...... 245,826 1,365,822 Brewin Dolphin Holdings PLC...... 54,874 225,171 CMC Markets PLC(c) ...... 20,901 118,640 Distributors — 0.8% (a) Draper Esprit PLC(a)...... 20,670 245,061 Inchcape PLC ...... 70,407 697,912 IG Group Holdings PLC ...... 66,293 722,011 Diversified Financial Services — 0.7% IntegraFin Holdings PLC...... 53,386 372,449 Burford Capital Ltd.(a)...... 35,293 302,474 Intermediate Capital Group PLC ...... 52,569 1,272,229 Plus500 Ltd...... 16,723 319,610 Investec PLC ...... 124,623 341,066 IP Group PLC(a) ...... 182,037 294,209 622,084 Jupiter Fund Management PLC ...... 79,705 329,181 Diversified Telecommunication Services — 0.2% Liontrust Asset Management PLC...... 11,062 194,869 TalkTalk Telecom Group PLC ...... 121,878 164,775 Man Group PLC...... 261,358 547,742

14 2021 I S HARES S E MI-AN N U AL R EPO RT TO S H AREHO LDERS Schedule of Investments (unaudited) (continued) iShares MSCI United Kingdom Small-Cap ETF February 28, 2021 (Percentages shown are based on Net Assets)

Security s Value Security s Value

Electrical Equipment — 0.8% Health Care Providers & Services (continued) Ceres Power Holdings PLC(a)...... 15,485 $ 270,187 Mediclinic International PLC(a) ...... 72,534 $ 289,424 ITM Power PLC(a) ...... 69,006 494,929 Spire Healthcare Group PLC(a)(c)...... 51,177 104,893 765,116 UDG Healthcare PLC ...... 45,210 487,651 Electronic Equipment, Instruments & Components — 1.6% 1,165,944 Renishaw PLC(a) ...... 6,496 522,218 Health Care Technology — 0.3% Spectris PLC...... 20,794 882,048 Craneware PLC...... 3,682 107,589 Strix Group PLC ...... 35,125 124,735 EMIS Group PLC ...... 10,263 152,383 1,529,001 259,972 Energy Equipment & Services — 0.7% Hotels, Restaurants & Leisure — 5.5% Hunting PLC ...... 25,326 89,300 888 Holdings PLC...... 65,832 273,358 John Wood Group PLC(a) ...... 122,448 512,043 Carnival PLC ...... 28,084 618,609 Petrofac Ltd.(a)(b) ...... 47,125 85,849 Domino's Pizza Group PLC...... 79,595 340,745 687,192 Gamesys Group PLC...... 13,535 258,114 (a) Entertainment — 0.6% Greggs PLC ...... 18,206 530,967 (a) Cineworld Group PLC(a) ...... 185,741 254,906 J D Wetherspoon PLC ...... 15,213 262,889 (a) Frontier Developments PLC(a) ...... 3,875 133,816 Marston's PLC ...... 115,008 153,798 (a)(b) Team17 Group PLC(a) ...... 17,520 178,812 Mitchells & Butlers PLC ...... 35,080 149,098 Mitchells & Butlers PLC, NVS...... 11, 6 9 3 1 5 , 3 6 7 567,534 Patisserie Holdings PLC(d) ...... 6 , 0 5 3 0(e) Equity Real Estate Investment Trusts (REITs) — 8.3% Playtech PLC(a) ...... 53,577 354,455 Assura PLC...... 474,909 494,658 Restaurant Group PLC (The)(a) ...... 107,144 163,130 Big Yellow Group PLC...... 30,036 476,625 SSP Group PLC ...... 96,857 466,372 BMO Commercial Property Trust...... 141,067 140,030 TUI AG(a) ...... 138,087 833,631 Capital & Counties Properties PLC...... 129,296 306,765 William Hill PLC(a) ...... 178,474 675,214 Civitas Social Housing PLC...... 112,831 169,422 Custodian REIT PLC ...... 72,729 93,955 5,095,747 Derwent London PLC ...... 19,037 880,978 Household Durables — 3.0% Empiric Student Property PLC ...... 106,562 110,248 Bellway PLC ...... 22,076 866,674 (a)(c) GCP Student Living PLC ...... 82,239 177,297 Countryside Properties PLC ...... 93,858 610,974 (a) Great Portland Estates PLC ...... 41,015 389,016 Crest Nicholson Holdings PLC ...... 45,661 205,050 Hammerson PLC...... 683,484 249,597 IG Design Group PLC ...... 12,644 87,681 LondonMetric Property PLC ...... 155,333 475,170 Redrow PLC ...... 50,624 385,737 (a) LXI REIT PLC...... 94,291 167,422 Victoria PLC ...... 14,710 166,585 (a) Picton Property Income Ltd. (The)...... 99,781 122,624 Vistry Group PLC ...... 40,029 471,222 Primary Health Properties PLC ...... 236,857 503,348 2,793,923 RDI REIT PLC ...... 47,300 80,679 Household Products — 0.1% Regional REIT Ltd.(c) ...... 71,578 76,556 PZ Cussons PLC...... 38,079 130,434 Safestore Holdings PLC ...... 37,676 420,872 Shaftesbury PLC(a) ...... 34,338 296,929 Independent Power and Renewable Electricity Producers — 0.5% (c) Tritax Big Box REIT PLC ...... 307,419 774,075 ContourGlobal PLC ...... 36,259 104,936 UK Commercial Property REIT Ltd...... 142,317 136,496 Drax Group PLC ...... 71,134 380,107 UNITE Group PLC (The)(a) ...... 57,019 774,065 485,043 Warehouse REIT PLC...... 64,866 115,629 Insurance — 2.3% Workspace Group PLC ...... 24,264 259,515 Beazley PLC(a)...... 108,839 526,196 (a) 7,691,971 Hiscox Ltd...... 61,996 818,227 (a) Food Products — 1.8% Just Group PLC ...... 187,797 237,485 Bakkavor Group PLC(a)(c) ...... 26,269 32,687 Lancashire Holdings Ltd...... 43,411 373,262 (c) Cranswick PLC ...... 9,386 446,430 Sabre Insurance Group PLC ...... 45,474 154,175 Greencore Group PLC(a) ...... 95,564 202,950 2,109,345 Hotel Chocolat Group PLC(a) ...... 8,977 45,810 Interactive Media & Services — 1.3% Premier Foods PLC(a) ...... 104,849 132,517 Rightmove PLC(a) ...... 156,349 1,235,043 Tate & Lyle PLC...... 83,857 852,339 Internet & Direct Marketing Retail — 3.5% 1,712,733 AO World PLC(a) ...... 51,257 203,521 Health Care Equipment & Supplies — 0.9% ASOS PLC(a) ...... 13,385 1,047,960 Advanced Medical Solutions Group PLC ...... 35,184 115,598 boohoo Group PLC(a)...... 180,312 849,306 (c) ConvaTec Group PLC ...... 268,618 707,546 Moneysupermarket.com Group PLC ...... 96,078 389,548 823,144 On the Beach Group PLC(a)(c)...... 26,299 145,604 Health Care Providers & Services — 1.3% Trainline PLC(a)(c) ...... 81,669 590,889 (a) CVS Group PLC ...... 11,955 283,976 3,226,828

S C HEDU LE O F I NVES TMENTS 15 Schedule of Investments (unaudited) (continued) iShares MSCI United Kingdom Small-Cap ETF February 28, 2021 (Percentages shown are based on Net Assets)

Security s Value Security s Value

IT Services — 2.7% Oil, Gas & Consumable Fuels (continued) Capita PLC(a) ...... 296,899 $ 187,789 Energean PLC(a) ...... 17,288 $ 218,573 Computacenter PLC...... 13,281 387,332 Serica Energy PLC...... 31,594 53,006 Equiniti Group PLC(a)(c)...... 66,211 131,449 Tullow Oil PLC(a) ...... 248,780 152,762 (a)(c)(d) Finablr PLC ...... 6 1 , 7 1 0 8 6 3 875,194 iomart Group PLC...... 16,870 72,409 Pharmaceuticals — 1.5% Kainos Group PLC ...... 14,380 264,578 Alliance Pharma PLC...... 81,994 98,243 (a) Keywords Studios PLC ...... 12,562 441,532 Dechra Pharmaceuticals PLC...... 19,333 927,111 NCC Group PLC ...... 50,612 185,747 Indivior PLC(a) ...... 132,767 238,524 (a)(c) Network International Holdings PLC ...... 83,893 435,149 Vectura Group PLC(a) ...... 106,101 166,141 Softcat PLC...... 21,362 437,241 1,430,019 2,544,089 Professional Services — 1.6% Leisure Products — 0.8% Hays PLC(a)...... 300,141 638,673 Games Workshop Group PLC ...... 5,555 742,084 Pagegroup PLC(a) ...... 58,827 393,301 RWS Holdings PLC ...... 51,929 439,242 Life Sciences Tools & Services — 0.4% Clinigen Group PLC ...... 24,013 239,541 1,471,216 Ergomed PLC(a)...... 6,625 115,780 Real Estate Management & Development — 2.3% 355,321 Grainger PLC ...... 121,309 455,891 Machinery — 4.2% Helical PLC ...... 19,825 105,326 (a) ...... 135,045 679,703 Bodycote PLC ...... 34,277 346,481 IWG PLC Savills PLC(a) ...... 25,584 413,132 IMI PLC ...... 48,730 891,815 Sirius Real Estate Ltd...... 167,311 216,374 Judges Scientific PLC ...... 902 75,665 St. Modwen Properties PLC ...... 35,516 196,137 Morgan Advanced Materials PLC ...... 50,791 220,134 Watkin Jones PLC ...... 37,003 103,985 Rotork PLC ...... 156,252 779,451 Vesuvius PLC...... 38,735 282,150 2,170,548 Weir Group PLC (The)(a)...... 46,482 1,288,033 Road & Rail — 1.2% (a) 3,883,729 Firstgroup PLC ...... 216,872 272,888 (a) ...... 7,876 129,274 Media — 3.0% Go-Ahead Group PLC (The) National Express Group PLC(a) ...... 98,941 413,605 Ascential PLC(a)...... 72,103 360,487 Redde Northgate PLC...... 44,708 171,892 Daily Mail & General Trust PLC, Class A, NVS...... 28,245 355,404 Stagecoach Group PLC ...... 73,341 95,361 Euromoney Institutional Investor PLC ...... 19,545 265,608 Future PLC ...... 20,455 557,664 1,083,020 ITV PLC(a) ...... 648,623 996,164 Semiconductors & Semiconductor Equipment — 0.2% S4 Capital PLC(a) ...... 48,447 300,738 IQE PLC(a)...... 134,632 138,160 2,836,065 Software — 2.7% Metals & Mining — 2.3% Alfa Financial Software Holdings PLC(c) ...... 17,575 32,091 Centamin PLC ...... 206,955 292,382 Avast PLC(c) ...... 119,298 770,573 Central Asia Metals PLC...... 28,380 95,624 Blue Prism Group PLC(a) ...... 14,257 305,170 (a) Eurasia Mining PLC ...... 317,838 127,978 Bytes Technology Group PLC(a)...... 29,825 174,549 Ferrexpo PLC...... 53,022 248,484 First Derivatives PLC(a) ...... 3,919 159,169 (a) Greatland Gold PLC ...... 650,820 218,379 GB Group PLC...... 33,163 382,977 Hill & Smith Holdings PLC ...... 14,200 252,531 Ideagen PLC...... 33,058 126,638 Hochschild Mining PLC...... 60,410 181,587 Learning Technologies Group PLC ...... 91,829 209,911 KAZ Minerals PLC ...... 42,383 494,548 Micro Focus International PLC(a) ...... 59,921 350,685 Petropavlovsk PLC(a) ...... 455,221 174,386 2,511,763 SolGold PLC(a)...... 150,555 45,256 Specialty Retail — 2.3% 2,131,155 Dixons Carphone PLC(a)...... 187,854 332,763 Multi-Utilities — 1.0% Dunelm Group PLC(a) ...... 18,107 318,215 (a) Centrica PLC ...... 1,045,368 771,103 Frasers Group PLC(a) ...... 36,990 242,650 Telecom Plus PLC ...... 11,361 187,112 Halfords Group PLC(a)...... 36,167 146,386 958,215 Pets at Home Group PLC...... 89,255 492,162 Multiline Retail — 2.1% WH Smith PLC...... 23,389 624,574 B&M European Value Retail SA...... 161,164 1,231,168 2,156,750 (a) Marks & Spencer Group PLC ...... 349,723 693,817 Textiles, Apparel & Luxury Goods — 0.2% 1,924,985 Coats Group PLC(a) ...... 258,134 224,478 Oil, Gas & Consumable Fuels — 0.9% Cairn Energy PLC...... 89,107 237,949 Thrifts & Mortgage Finance — 0.8% (a) Diversified Gas & Oil PLC ...... 121,825 212,904 OSB Group PLC ...... 79,892 495,488

16 2021 I S HARES S E MI-AN N U AL R EPO RT TO S H AREHO LDERS Schedule of Investments (unaudited) (continued) iShares MSCI United Kingdom Small-Cap ETF February 28, 2021 (Percentages shown are based on Net Assets)

Security s Value Security s Value Thrifts & Mortgage Finance (continued) Short-Term Investments Paragon Banking Group PLC ...... 45,749 $ 287,188 Money Market Funds — 1.1% 782,676 BlackRock Cash Funds: Institutional, SL Agency Shares, Trading Companies & Distributors — 4.6% 0.12%(f)(g)(h) ...... 921,834 $ 922,387 Diploma PLC ...... 22,302 722,763 BlackRock Cash Funds: Treasury, SL Agency Shares, Electrocomponents PLC...... 80,072 1,085,902 0.00%(f)(g) ...... 90,000 90,000 Grafton Group PLC...... 40,792 564,325 1,012,387 Howden Joinery Group PLC(a) ...... 106,899 1,040,510 (a) Travis Perkins PLC ...... 45,138 907,170 Total Short-Term Investments — 1.1% 4,320,670 (Cost: $1,011,795)...... 1,012,387 Transportation Infrastructure — 0.9% Signature Aviation PLC(a) ...... 148,253 827,847 Total Investments in Securities — 100.7% (Cost: $92,969,121)...... 93,715,184 Water Utilities — 1.0% Other Assets, Less Liabilities — (0.7)%...... (673,445) Pennon Group PLC ...... 75,448 921,929 Net Assets — 100.0% ...... $ 93,041,739 Wireless Telecommunication Services — 0.2% Airtel Africa PLC(c)...... 133,198 148,421 (a) Non-income producing security. (b) All or a portion of this security is on loan. Total Common Stocks — 99.6% (c) Security exempt from registration pursuant to Rule 144A under the Securities Act of (Cost: $91,957,326)...... 92,702,471 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. (d) Rights Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy. Equity Real Estate Investment Trusts (REITs) — 0.0% (e) Rounds to less than $1. LXI REIT PLC, (Expires 03/10/21)(a)...... 9, 3 2 5 3 2 6 (f) Affiliate of the Fund. (g) Annualized 7-day yield as of period-end. Total Rights — 0.0% (h) All or a portion of this security was purchased with cash collateral received from loaned (Cost: $0) ...... 326 securities.

Capital Gain Change in Distributions Unrealized Shares from Value at Purchases Proceeds Net Realized Appreciation Value at Held at Underlying Affiliated Issuer 08/31/20 at Cost from Sales Gain (Loss) (Depreciation) 02/28/21 02/28/21 Income Funds BlackRock Cash Funds: Institutional, SL Agency Shares ...... $1,170,176 $ — $(247,080)(a) $ (478) $ (231) $ 922,387 921,834 $51,702(b) $ — BlackRock Cash Funds: Treasury, SL Agency Shares ...... 20,000 70,000(a) — — — 90,000 90,000 11 — $ (478) $ (231) $1,012,387 $51,713 $ —

(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

Value/ Notional Unrealized Number of Expiration Amount Appreciation Description Contracts Date (000) (Depreciation) Long Contracts FTSE 250 Index...... 4 03/19/21 $ 234 $ 2,605

S C HEDU LE O F I NVES TMENTS 17 Schedule of Investments (unaudited) (continued) iShares MSCI United Kingdom Small-Cap ETF February 28, 2021

Equity Contracts Assets — Derivative Financial Instruments Futures contracts Unrealized appreciation on futures contracts(a) ...... $ 2,605

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 ...... $ 38,678 Net Change in Unrealized Appreciation (Depreciation) on: Futures contracts ...... $ (2,305)

Average Quarterly Balances of Outstanding Derivative Financial Instruments

Futures contracts: Average notional value of contracts — long ...... $259,487 For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

Level 1 Level 2 Level 3 Total Investments Assets Common Stocks ...... $92,686,241 $ 15,367 $ 863 $92,702,471 Rights ...... — 326 — 326 Money Market Funds...... 1,012,387 — — 1,012,387 $93,698,628 $ 15,693 $ 863 $93,715,184 Derivative financial instruments(a) Assets Futures Contracts...... $ 2, 6 0 5 $ — $ — $ 2 , 6 0 5

(a) Shown at the unrealized appreciation (depreciation) on the contracts. See notes to financial statements.

18 2021 I S HARES S E MI-AN N U AL R EPO RT TO S H AREHO LDERS Statements of Assets and Liabilities (unaudited) February 28, 2021

iShares Currency iShares Hedged MSCI United MSCI United iShares Kingdom Kingdom MSCI United Small-Cap ETF Kingdom ETF ETF

ASSETS Investments in securities, at value (including securities on loan)(a): Unaffiliated(b)...... $ — $3,116,649,572 $ 92,702,797 Affiliated(c) ...... 7,265,871 1,270,000 1,012,387 Cash ...... 3,639 2,326 9,803 Foreign currency, at value(d) ...... — 16,707,198 193,688 Foreign currency collateral pledged: Futures contracts(e)...... — 3,698,368 26,564 Receivables: Investments sold ...... 190,551 189,398 84,761 Securities lending income — Affiliated...... — — 125 Capital shares sold ...... — 893,223 76,037 Dividends ...... — 13,410,826 24,961 Tax reclaims ...... — 41,491 13,664 Unrealized appreciation on: Forward foreign currency exchange contracts...... 26,002 — — Total assets...... 7,486,063 3,152,862,402 94,144,787

LIABILITIES Collateral on securities loaned, at value ...... — — 922,544 Payables: Investments purchased ...... 57,374 405,859 143,043 Variation margin on futures contracts ...... — 943,646 3,074 Investment advisory fees ...... — 1,168,382 34,387 Unrealized depreciation on: Forward foreign currency exchange contracts...... 136,071 — — Total liabilities...... 193,445 2,517,887 1,103,048

NET ASSETS...... $ 7,292,618 $3,150,344,515 $ 93,041,739

NET ASSETS CONSIST OF: Paid-in capital ...... $15,678,395 $3,941,965,269 $101,625,752 Accumulated loss ...... (8,385,777) (791,620,754) (8,584,013) NET ASSETS...... $ 7,292,618 $3,150,344,515 $ 93,041,739

Shares outstanding ...... 350,000 103,500,000 2,100,000 Net asset value ...... $ 20.84 $ 30.44 $ 44.31 Shares authorized ...... Unlimited Unlimited Unlimited Par value ...... None None None

(a) Securities loaned, at value...... $ — $ — $ 838,522 (b) Investments, at cost — Unaffiliated...... $ —$3,475,774,096 $ 91,957,326 (c) Investments, at cost — Affiliated ...... $ 7,994,697 $ 1,270,000 $ 1,011,795 (d) Foreign currency, at cost...... $ —$ 16,613,623 $ 193,999 (e) Foreign currency collateral pledged, at cost...... $ —$ 3,712,551 $ 26,805

See notes to financial statements.

F INANC IAL S T ATEMENTS 19 Statements of Operations (unaudited) Six Months Ended February 28, 2021

iShares Currency iShares Hedged iShares MSCI United MSCI United MSCI United Kingdom Kingdom Kingdom Small-Cap ETF ETF ETF

INVESTMENT INCOME Dividends — Unaffiliated ...... $ —$ 43,060,628 $ 534,335 Dividends —Affiliated...... 106,846 500 11 Securities lending income — Affiliated — net ...... — 1,680 51,702 Foreign taxes withheld ...... — (315,615) (29,208) Total investment income ...... 106,846 42,747,193 556,840

EXPENSES Investment advisory fees ...... 28,344 6,529,515 185,797 Total expenses ...... 28,344 6,529,515 185,797

Less: Investment advisory fees waived...... (28,344) — — Total expenses after fees waived ...... — 6,529,515 185,797 Net investment income...... 106,846 36,217,678 371,043

REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) from: Investments — Unaffiliated ...... — (73,134,495) (1,261,260) Investments —Affiliated ...... (199,809) (2,606) (478) In-kind redemptions — Unaffiliated ...... — 28,287,407 847,223 In-kind redemptions — Affiliated...... (471,292) — — Futures contracts...... — 585,292 38,678 Forward foreign currency exchange contracts...... (429,638) — — Foreign currency transactions...... — 524,256 6,110 Net realized loss ...... (1,100,739) (43,740,146) (369,727) Net change in unrealized appreciation (depreciation) on: Investments — Unaffiliated ...... — 381,736,291 14,010,278 Investments — Affiliated ...... 2,040,785 320 (231) Futures contracts...... — (181,545) (2,305) Forward foreign currency exchange contracts...... 117,533 — — Foreign currency translations ...... — (476,834) (8,603) Net change in unrealized appreciation (depreciation)...... 2,158,318 381,078,232 13,999,139 Net realized and unrealized gain...... 1,057,579 337,338,086 13,629,412 NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ...... $ 1,164,425 $373,555,764 $14,000,455

See notes to financial statements.

20 2021 I S HARES S E MI-AN N U AL R EPO RT TO S H AREHO LDERS Statements of Changes in Net Assets

iShares Currency Hedged MSCI United Kingdom iShares ETF MSCI United Kingdom ETF Six Months Ended Six Months Ended 02/28/21 Year Ended 02/28/21 Year Ended (unaudited) 08/31/20 (unaudited) 08/31/20

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS Net investment income...... $ 106,846 $ 1,298,543 $ 36,217,678 $ 68,412,471 Net realized loss ...... (1,100,739) (11,338,886) (43,740,146) (165,092,866) Net change in unrealized appreciation (depreciation) ...... 2,158,318 (1,651,356) 381,078,232 (156,794,889) Net increase (decrease) in net assets resulting from operations ...... 1,164,425 (11,691,699) 373,555,764 (253,475,284)

DISTRIBUTIONS TO SHAREHOLDERS(a) Decrease in net assets resulting from distributions to shareholders...... (106,290) (1,298,842) (31,433,203) (75,813,059)

CAPITAL SHARE TRANSACTIONS Net increase (decrease) in net assets derived from capital share transactions ...... (4,185,893) (11,735,402) 617,158,086 519,630,214

NET ASSETS Total increase (decrease) in net assets ...... (3,127,758) (24,725,943) 959,280,647 190,341,871 Beginning of period ...... 10,420,376 35,146,319 2,191,063,868 2,000,721,997 End of period...... $ 7,292,618 $ 10,420,376 $3,150,344,515 $2,191,063,868

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

See notes to financial statements.

F INANC IAL S T ATEMENTS 21 Statements of Changes in Net Assets (continued)

iShares MSCI United Kingdom Small-Cap ETF Six Months Ended 02/28/21 Year Ended (unaudited) 08/31/20

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS Net investment income ...... $ 371,043 $ 1,638,496 Net realized loss ...... (369,727) (12,000,108) Net change in unrealized appreciation (depreciation)...... 13,999,139 (3,873,370) Net increase (decrease) in net assets resulting from operations ...... 14,000,455 (14,234,982)

DISTRIBUTIONS TO SHAREHOLDERS(a) Decrease in net assets resulting from distributions to shareholders ...... (655,859) (2,244,985)

CAPITAL SHARE TRANSACTIONS Net increase in net assets derived from capital share transactions...... 19,039,718 16,028,264

NET ASSETS Total increase (decrease) in net assets...... 32,384,314 (451,703) Beginning of period ...... 60,657,425 61,109,128 End of period ...... $93,041,739 $ 60,657,425

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

See notes to financial statements.

22 2021 I S HARES S E MI-AN N U AL R EPO RT TO S H AREHO LDERS Financial Highlights (For a share outstanding throughout each period)

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

Net asset value, beginning of period ...... $18.95 $ 23.43 $ 23.83 $ 23.84 $ 24.87 $ 23.21 Net investment income(a) ...... 0.23 0.74 0.92 1.11 0.48 0.43 Net realized and unrealized gain (loss)(b) ...... 1.90 (4.46) (0.26) (0.05) 2.39 2.48 Net increase (decrease) from investment operations ...... 2.13 (3.72) 0.66 1.06 2.87 2.91

Distributions(c) From net investment income...... (0.24) (0.76) (1.06) (1.07) (0.84) (1.01) From net realized gain ...... — — — — (3.06) (0.24) Total distributions ...... (0.24) (0.76) (1.06) (1.07) (3.90) (1.25)

Net asset value, end of period ...... $20.84 $ 18.95 $ 23.43 $ 23.83 $ 23.84 $ 24.87

Total Return Based on net asset value ...... 11.22%(d) (16.34)% 2.92% 4.42% 13.48% 12.90%

Ratios to Average Net Assets Total expenses(e) ...... 0.62%(f) 0.62% 0.62% 0.62% 0.62% 0.62% Total expenses after fees waived(e) ...... 0.00%(f) 0.00%(g) 0.00% 0.00% 0.00% 0.00% Net investment income...... 2.34%(f) 3.31% 3.96% 4.62% 1.99% 1.80%

Supplemental Data Net assets, end of period (000)...... $7,293 $10,420 $35,146 $22,643 $19,073 $114,398 Portfolio turnover rate(h)(i) ...... 8%(d) 15% 11% 17% 20% 4%

(a) Based on average shares outstanding. (b) The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. (c) Distributions for annual periods determined in accordance with U.S. federal income tax regulations. (d) Not annualized. (e) The Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying fund in which the Fund is invested. This ratio does not include these indirect fees and expenses. (f) Annualized. (g) Rounds to less than 0.01%. (h) Portfolio turnover rate excludes in-kind transactions. (i) Portfolio turnover rate excludes the portfolio activity of the underlying fund in which the Fund is invested. See the underlying fund's financial highlights for its respective portfolio turnover rates.

See notes to financial statements.

F INANC IAL H I G HLIG HTS 23 Financial Highlights (continued) (For a share outstanding throughout each period)

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

Net asset value, beginning of period ...... $ 26.88 $ 30.27 $ 33.62 $ 33.76 $ 31.36 $ 34.30 Net investment income(b) ...... 0.39 0.90 1.49 1.29 1.13 1.22 Net realized and unrealized gain (loss)(c) ...... 3.50 (3.30) (3.39) 0.06 2.43 (2.73) Net increase (decrease) from investment operations ...... 3.89 (2.40) (1.90) 1.35 3.56 (1.51)

Distributions(d) From net investment income ...... (0.33) (0.99) (1.45) (1.49) (1.16) (1.43) Total distributions...... (0.33) (0.99) (1.45) (1.49) (1.16) (1.43)

Net asset value, end of period...... $ 30.44 $ 26.88 $ 30.27 $ 33.62 $ 33.76 $ 31.36

Total Return Based on net asset value ...... 14.54%(e) (8.25)% (5.64)% 3.90% 11.60% (4.44)%

Ratios to Average Net Assets Total expenses ...... 0.50%(f) 0.51% 0.50% 0.47% 0.49% 0.48% Net investment income ...... 2.79%(f) 3.12% 4.64% 3.66% 4.07% 3.80%

Supplemental Data Net assets, end of period (000)...... $3,150,345 $2,191,064 $2,000,722 $1,986,971 $2,764,746 $1,928,881 Portfolio turnover rate(g)...... 6%(e) 4% 11% 5% 4% 5%

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

See notes to financial statements.

24 2021 I S H ARES S EMI-AN N U AL R E P O RT TO S HAREHO LDERS Financial Highlights (continued) (For a share outstanding throughout each period)

iShares MSCI United Kingdom Small-Cap ETF Six Months Ended 02/28/21 Year Ended Year Ended Year Ended Year Ended Year Ended (unaudited) 08/31/20 08/31/19 08/31/18 08/31/17 08/31/16

Net asset value, beginning of period ...... $ 35.68 $ 35.95 $ 42.65 $ 39.92 $ 35.91 $ 40.91 Net investment income(a) ...... 0.23 0.72 1.05 1.15 0.92 1.02 Net realized and unrealized gain (loss)(b) ...... 8.81 0.03 (6.69) 2.93 4.12 (4.89) Net increase (decrease) from investment operations ...... 9.04 0.75 (5.64) 4.08 5.04 (3.87)

Distributions(c) From net investment income...... (0.41) (1.02) (1.06) (1.35) (1.03) (1.13) Total distributions ...... (0.41) (1.02) (1.06) (1.35) (1.03) (1.13)

Net asset value, end of period ...... $ 44.31 $ 35.68 $ 35.95 $ 42.65 $ 39.92 $ 35.91

Total Return Based on net asset value ...... 25.48%(d) 1.90% (13.17)% 10.22% 14.40% (9.66)%

Ratios to Average Net Assets Total expenses ...... 0.59%(e) 0.59% 0.59% 0.59% 0.59% 0.59% Net investment income...... 1.18%(e) 1.99% 2.76% 2.68% 2.50% 2.72%

Supplemental Data Net assets, end of period (000)...... $93,042 $60,657 $61,109 $57,571 $31,935 $25,135 Portfolio turnover rate(f) ...... 6%(d) 25% 20% 20% 19% 21%

See notes to financial statements.

F INANC IAL H I G HLIG HTS 25 Notes to Financial Statements (unaudited)

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

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

Diversification iShares ETF Classification Currency Hedged MSCI United Kingdom ...... Diversified MSCI United Kingdom ...... Non-diversified MSCI United Kingdom Small-Cap ...... Diversified

Currently the iShares Currency Hedged MSCI United Kingdom ETF seeks to achieve its investment objective by investing a substantial portion of its assets in the iShares MSCI United Kingdom ETF (the “underlying fund”). The financial statements, including the accounting policies, and schedule of investments for the underlying fund are included in this report and should be read in conjunction with the financial statements of the iShares Currency Hedged MSCI United Kingdom ETF.

2. SIGNIFICANT ACCOUNTING POLICIES

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

Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recorded on the ex-dividend date. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. 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. However, the currency hedged fund has elected to treat realized gains (losses) from certain foreign currency contracts as capital gain (loss) for U.S. federal income tax purposes.

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

26 2021 I S HARES S E MI-AN N U AL R EPO RT TO S H AREHO LDERS Notes to Financial Statements (unaudited) (continued)

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

Distributions: Dividends and distributions paid by each Fund are recorded on the ex-dividend dates. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividends and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Funds. 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 Trustees of the Trust (the “Board”). If a security’s market price is not readily available or does not otherwise accurately represent the fair value of the security, the security will be valued in accordance with a policy approved by the Board as reflecting fair value. The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.

Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of each Fund’s assets and liabilities: • Equity investments traded on a recognized securities exchange are valued at 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. • Exchange-traded funds and closed-end funds traded on a recognized securities exchange are valued at that day’s last traded price or official closing price, as applicable, on the exchange where the fund is primarily traded. Funds traded on a recognized exchange for which there were no sales on that day may be valued at the last traded price. • Investments in open-end U.S. mutual funds (including money market funds) are valued at that day’s published 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.

N O TES TO F INANC IAL S T ATEMENTS 27 Notes to Financial Statements (unaudited) (continued)

4. SECURITIES AND OTHER INVESTMENTS

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

As of period end, any securities on loan were collateralized by cash and/or U.S. Government obligations. Cash collateral invested in money market funds managed by 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:

Market Value of Cash Collateral Non-Cash Collateral iShares ETF and Counterparty Securities on Loan Received(a) Received Net Amount MSCI United Kingdom Small-Cap Barclays Capital Inc...... $ 303,079 $ 303,079 $ — $ — BofA Securities, Inc...... 299,773 299,773 — — HSBC Bank PLC...... 121,412 121,412 — — JPMorgan Securities LLC ...... 50,179 50,179 — — Scotia Capital (USA) Inc...... 64,079 64,079 — — $ 838,522 $ 838,522 $ — $ —

(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).

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

28 2021 I S HARES S E MI-AN N U AL R EPO RT TO S H AREHO LDERS Notes to Financial Statements (unaudited) (continued) 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 Trust, BFA manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA is responsible for substantially all expenses of the Funds, except (i) interest and taxes; (ii) brokerage commissions and other expenses connected with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee payable to BFA; and (v) litigation expenses and any extraordinary expenses (in each case as determined by a majority of the independent trustees).

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

iShares ETF Investment Advisory Fee Currency Hedged MSCI United Kingdom ...... 0.62% MSCI United Kingdom Small-Cap ...... 0.59

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

N O TES TO F INANC IAL S T ATEMENTS 29 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

Expense Waivers: A fund may incur its pro rata share of fees and expenses attributable to its investments in other investment companies (“acquired fund fees and expenses”). The total of the investment advisory fee and acquired fund fees and expenses are a fund’s total annual operating expenses.

For the iShares Currency Hedged MSCI United Kingdom ETF, BFA has contractually agreed to waive a portion of its investment advisory fee for the Fund through December 31, 2025 so that the Fund’s total annual operating expenses after fee waiver is equal to the acquired fund fees and expenses attributable to the Fund’s investment in the iShares MSCI United Kingdom ETF (“EWU”), after taking into account any fee waivers by EWU, plus 0.03%. BFA has also contractually agreed to an additional reduction in its investment advisory fee of 0.03% through December 31, 2025.

This amount is included in investment advisory fees waived in the Statements of Operations. For the six months ended February 28, 2021, the amounts waived in investment advisory fees pursuant to this arrangement were as follows:

iShares ETF Amounts waived Currency Hedged MSCI United Kingdom...... $ 28,344

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 efffectively 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:

Fees Paid iShares ETF to BTC MSCI United Kingdom...... $ 620 MSCI United Kingdom Small-Cap ...... 11,504

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

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

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

30 2021 I S HARES S E MI-AN N U AL R EPO RT TO S H AREHO LDERS Notes to Financial Statements (unaudited) (continued)

Net Realized iShares ETF Purchases Sales Gain (Loss) MSCI United Kingdom ...... $ 4,334,799 $ 3,779,221 $ (2,351,681) MSCI United Kingdom Small-Cap ...... 1,501 782,464 (9,817)

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

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

7. PURCHASES AND SALES

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

iShares ETF Purchases Sales Currency Hedged MSCI United Kingdom ...... $ 691,913 $ 965,732 MSCI United Kingdom ...... 167,090,568 168,294,632 MSCI United Kingdom Small-Cap ...... 4,305,306 4,187,312

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

In-kind In-kind iShares ETF Purchases Sales Currency Hedged MSCI United Kingdom ...... $ 1,025,012 $ 5,255,209 MSCI United Kingdom ...... 699,790,789 92,673,866 MSCI United Kingdom Small-Cap ...... 32,036,176 13,315,664

8. INCOME TAX INFORMATION

Each Fund is treated as an entity separate from the Trust's other funds for federal income tax purposes. It is each Fund’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute substantially all off 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 Currency Hedged MSCI United Kingdom...... $ 6,536,821 MSCI United Kingdom ...... 352,213,250 MSCI United Kingdom Small-Cap ...... 8,166,222

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:

Net Unrealized Gross Unrealized Gross Unrealized Appreciation iShares ETF Tax Cost Appreciation Depreciation (Depreciation) Currency Hedged MSCI United Kingdom ...... $ 8,132,181 $ 26,002 $ (1,002,381) $ (976,379) MSCI United Kingdom ...... 3,535,092,257 246,868,697 (664,813,878) (417,945,181) MSCI United Kingdom Small-Cap ...... 93,756,218 8,609,859 (8,648,288) (38,429)

N O TES TO F INANC IAL S T ATEMENTS 31 Notes to Financial Statements (unaudited) (continued)

9. PRINCIPAL RISKS

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

32 2021 I S HARES S E MI-AN N U AL R EPO RT TO S H AREHO LDERS Notes to Financial Statements (unaudited) (continued)

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

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

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 Year Ended 02/28/21 08/31/20 iShares ETF Shares Amount Shares Amount Currency Hedged MSCI United Kingdom Shares sold...... 50,000 $ 1,028,139 1,400,000 $ 32,825,295 Shares redeemed...... (250,000) (5,214,032) (2,350,000) (44,560,697) Net decrease ...... (200,000) $ (4,185,893) (950,000) $ (11,735,402) MSCI United Kingdom Shares sold...... 25,100,000 $ 710,378,631 27,900,000 $ 816,367,221 Shares redeemed...... (3,100,000) (93,220,545)(12,500,000) (296,737,007) Net increase ...... 22,000,000 $ 617,158,086 15,400,000 $ 519,630,214 MSCI United Kingdom Small-Cap Shares sold...... 750,000 $ 32,444,732 1,600,000 $ 67,533,603 Shares redeemed...... (350,000) (13,405,014) (1,600,000) (51,505,339) Net increase ...... 400,000 $ 19,039,718 — $ 16,028,264

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

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

11. SUBSEQUENT EVENTS

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

N O TES TO F INANC IAL S T ATEMENTS 33 Statement Regarding Liquidity Risk Management Program (unaudited)

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

The Board of Trustees (the “Board”) of the Trust, on behalf of the Funds, met on December 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.

34 2021 I S HARES S E MI-AN N U AL R EPO RT TO S H AREHO LDERS 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.

Section 19(a) Notices

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

February 28, 2021

Total Cumulative Distributions % Breakdown of the Total Cumulative for the Fiscal Year-to-Date Distributions for the Fiscal Year-to-Date Net Net Investment Net Realized Return of Total Per Investment Net Realized Return of Total Per iShares ETF Income Capital Gains Capital Share Income Capital Gains Capital Share Currency Hedged MSCI United Kingdom(a) ...... $ 0.216416 $ —$ 0.019784 $ 0.236200 92% —% 8% 100% MSCI United Kingdom(a)...... 0.304261 — 0.027663 0.331924 92— 8 100 MSCI United Kingdom Small-Cap(a) ...... 0.333527 — 0.076385 0.409912 81—19 100

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

S U PPLEMENTAL I NFO RMATION 35 General Information

Electronic Delivery

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

To enroll in electronic delivery:

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

Householding

Householding is an option available to certain fund investors. Householding is a method of delivery, based on the preference off 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 theirr 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 forr 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.

36 2021 I S HARES S E MI-AN N U AL R EPO RT TO S H AREHO LDERS Glossary of Terms Used in this Report

Portfolio Abbreviations - Equity Counterparty Abbreviations

NVS Non-Voting Shares MS Morgan Stanley & Co. International PLC REIT Real Estate Investment Trust

Currency Abbreviations

GBP British Pound USD United States Dollar

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