FEBRUARY 28, ANNUAL REPORT

Transcription

1 FEBRUARY 28, ANNUAL REPORT ishares Trust ishares Intermediate Government/Credit Bond ETF GVI NYSE Arca ishares Government/Credit Bond ETF GBF NYSE Arca ishares Agency Bond ETF AGZ NYSE Arca ishares MBS ETF MBB NYSE Arca

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3 Table of Contents Management s Discussions of Fund Performance... 5 About Fund Performance Shareholder Expenses Schedules of Investments ishares Intermediate Government/Credit Bond ETF ishares Government/Credit Bond ETF ishares Agency Bond ETF ishares MBS ETF Financial Statements Financial Highlights Notes to Financial Statements Report of Independent Registered Public Accounting Firm Tax Information Supplemental Information Trustee and Officer Information

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5 Management s Discussion of Fund Performance ishares TRUST U.S. BOND MARKET OVERVIEW The U.S. bond market edged higher during the 12 months ended (the reporting period ). The Bloomberg Barclays U.S. Aggregate Bond Index, a broad measure of U.S. bond performance, returned 1.42% for the reporting period. Overall, the U.S. economy grew by 1.6% in 2016, down from 2.6% in 2015 and the slowest calendar-year growth rate since Job growth remained robust as the unemployment rate stayed at or below 5%, and retail sales grew by 5.7% during the reporting period, led by vehicle sales and internet retailers. However, other segments of the economy continued to struggle. For example, Industrial production and business productivity were relatively flat for the reporting period, registering gains of 0.3% and 0.2%, respectively, in Despite the modest overall level of economic growth, inflation picked up during the reporting period. The consumer price index rose by 2.7% for the reporting period, the highest inflation rate since March The increase in the inflation rate reflected a recovery in energy prices after they bottomed in February Uneven economic data kept the U.S. Federal Reserve Bank (the Fed ) on hold for most of the reporting period. However, improving growth in the third quarter of 2016 and rising inflation led the Fed to raise its short-term interest rate target to a range of 0.50%-0.75% in December U.S. bond yields generally declined during the first half of the reporting period, reflecting the uncertain economic environment and global geopolitical turmoil, including the Brexit referendum (an affirmative vote for the U.K. to leave the European Union), terrorist attacks in France, and an attempted coup in Turkey. However, bond yields began to reverse course during the third quarter of 2016 and rose sharply following the outcome of the U.S. presidential election in November The election of Donald Trump fueled expectations that new fiscal policies aimed at stimulating economic growth would lead to rising inflation and more Fed interest rate increases in Intermediate-term bond yields rose the most during the reporting period, while shortterm yields tracked the December interest rate increase. Corporate bonds generated some of the best fixed-income returns, advancing by 6.5% for the reporting period. Continued investor demand for the relatively high yields of corporate bonds provided a favorable environment for performance. This was especially true for lower-quality corporate bonds, which outperformed during the reporting period. Within the corporate sector, bonds issued by energy and commodity-related companies were the best performers, while utilities lagged. Mortgage-backed securities posted fractional gains, returning approximately 0.5% for the reporting period. Mortgage refinancing activity declined meaningfully during the reporting period, which provided some measure of support to the mortgage-backed sector. However, investor concerns that the Fed may be reducing its $1.7 trillion position in mortgage-backed securities put downward pressure on the sector. Within the mortgage-backed sector, commercial mortgage-backed securities outperformed those backed by residential mortgages. U.S. Treasury bonds underperformed the other segments of the U.S. bond market, declining by just over 1% for the reporting period. Rising interest rates detracted from performance in the Treasury sector, which tends to have greater interest-rate sensitivity than other fixed-income sectors. Increased investor demand for lower-quality bonds also weighed on Treasury bonds. Short-term Treasury securities produced modestly positive returns for the reporting period, while intermediate- and long-term Treasury bonds declined. M ANAGEMENT S D ISCUSSIONS OF F UND P ERFORMANCE 5

6 Management s Discussion of Fund Performance ishares INTERMEDIATE GOVERNMENT/CREDIT BOND ETF Performance as of Average Annual Total Returns Cumulative Total Returns NAV MARKET INDEX NAV MARKET INDEX 1 Year 0.94% 0.77% 1.10% 0.94% 0.77% 1.10% 5 Years 1.59% 1.55% 1.80% 8.22% 7.98% 9.33% 10 Years 3.62% 3.60% 3.77% 42.74% 42.47% 44.82% GROWTH OF $10,000 INVESTMENT (AT NET ASSET VALUE) $15,000 $14,000 $14,482 $14,274 $13,000 $12,000 $11,000 $10,000 $9,000 Feb 08 Feb 09 Feb 10 Feb 11 Feb 12 Feb 13 Feb 14 Feb 15 Feb 16 Feb 17 Fund Index Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See About Fund Performance on page 14 for more information. Beginning Account (9/1/16) Actual Ending Account (2/28/17) Expenses Paid During Period a Shareholder Expenses Beginning Account (9/1/16) Hypothetical 5% Return Ending Account (2/28/17) Expenses Paid During Period a Annualized Expense Ratio $ 1, $ $ 0.99 $ 1, $ 1, $ % 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). See Shareholder Expenses on page 14 for more information ishares A NNUAL R EPORT TO S HAREHOLDERS

7 Management s Discussion of Fund Performance (Continued) ishares INTERMEDIATE GOVERNMENT/CREDIT BOND ETF The ishares Intermediate Government/Credit Bond ETF (the Fund ) seeks to track the investment results of an index composed of U.S. dollar-denominated government, government-related and investment-grade U.S. corporate bonds with remaining maturities between one and ten years, as represented by the Bloomberg Barclays U.S. Intermediate Government/ Credit Bond Index (formerly the Barclays U.S. Intermediate Government/Credit Bond 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. For the 12-month reporting period ended, the total return for the Fund was 0.94%, net of fees, while the total return for the Index was 1.10%. ALLOCATION BY INVESTMENT TYPE As of 2/28/17 Investment Type Percentage of Total Investments 1 U.S. Government & Agency Obligations 60.11% Corporate Bonds & Notes Foreign Government Obligations 5.38 Municipal Debt Obligations 0.14 TOTAL % Moody s Credit Rating 2 ALLOCATION BY CREDIT QUALITY As of 2/28/17 Percentage of Total Investments 1 Aaa 64.71% Aa 4.63 A Baa Ba 0.91 Not Rated 0.62 TOTAL % 1 Excludes money market funds. 2 Credit quality ratings shown reflect the ratings assigned by Moody s Investors Service ( Moody s ), a widely used independent, nationally recognized statistical rating organization. Moody s credit ratings are opinions of the credit quality of individual obligations or of an issuer s general creditworthiness. Investment grade ratings are credit ratings of Baa or higher. Below investment grade ratings are credit ratings of Ba or lower. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change. M ANAGEMENT S D ISCUSSIONS OF F UND P ERFORMANCE 7

8 Management s Discussion of Fund Performance ishares GOVERNMENT/CREDIT BOND ETF Performance as of Average Annual Total Returns Cumulative Total Returns NAV MARKET INDEX NAV MARKET INDEX 1 Year 1.57% 1.37% 1.81% 1.57% 1.37% 1.81% 5 Years 2.09% 2.00% 2.31% 10.90% 10.43% 12.07% 10 Years 4.20% 4.18% 4.33% 50.94% 50.54% 52.85% GROWTH OF $10,000 INVESTMENT (AT NET ASSET VALUE) $16,000 $15,000 $15,285 $15,094 $14,000 $13,000 $12,000 $11,000 $10,000 $9,000 Feb 08 Feb 09 Feb 10 Feb 11 Feb 12 Feb 13 Feb 14 Feb 15 Feb 16 Feb 17 Fund Index Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See About Fund Performance on page 14 for more information. Beginning Account (9/1/16) Actual Ending Account (2/28/17) Expenses Paid During Period a Shareholder Expenses Beginning Account (9/1/16) Hypothetical 5% Return Ending Account (2/28/17) Expenses Paid During Period a Annualized Expense Ratio $ 1, $ $ 0.98 $ 1, $ 1, $ % 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). See Shareholder Expenses on page 14 for more information ishares A NNUAL R EPORT TO S HAREHOLDERS

9 Management s Discussion of Fund Performance (Continued) ishares GOVERNMENT/CREDIT BOND ETF The ishares Government/Credit Bond ETF (the Fund ) seeks to track the investment results of an index composed of U.S. dollar-denominated government, government-related and investment-grade U.S. corporate bonds, as represented by the Bloomberg Barclays U.S. Government/Credit Bond Index (formerly the Barclays U.S. Government/Credit Bond 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. For the 12-month reporting period ended, the total return for the Fund was 1.57%, net of fees, while the total return for the Index was 1.81%. ALLOCATION BY INVESTMENT TYPE As of 2/28/17 Investment Type Percentage of Total Investments 1 U.S. Government & Agency Obligations 53.59% Corporate Bonds & Notes Foreign Government Obligations 4.99 Municipal Debt Obligations 1.29 TOTAL % Moody s Credit Rating 2 ALLOCATION BY CREDIT QUALITY As of 2/28/17 Percentage of Total Investments 1 Aaa 58.22% Aa 5.71 A Baa Ba 1.13 Not Rated 0.75 TOTAL % 1 Excludes money market funds. 2 Credit quality ratings shown reflect the ratings assigned by Moody s Investors Service ( Moody s ), a widely used independent, nationally recognized statistical rating organization. Moody s credit ratings are opinions of the credit quality of individual obligations or of an issuer s general creditworthiness. Investment grade ratings are credit ratings of Baa or higher. Below investment grade ratings are credit ratings of Ba or lower. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change. M ANAGEMENT S D ISCUSSIONS OF F UND P ERFORMANCE 9

10 Management s Discussion of Fund Performance ishares AGENCY BOND ETF Performance as of Average Annual Total Returns Cumulative Total Returns NAV MARKET INDEX NAV MARKET INDEX 1 Year 0.14% 0.24% 0.24% 0.14% 0.24% 0.24% 5 Years 1.37% 1.36% 1.42% 7.05% 6.97% 7.31% Since Inception 2.77% 2.77% 2.84% 25.51% 25.54% 26.27% GROWTH OF $10,000 INVESTMENT (SINCE INCEPTION AT NET ASSET VALUE) $13,000 $12,000 $12,627 $12,551 $11,000 $10,000 $9,000 Feb 09 Feb 10 Feb 11 Feb 12 Feb 13 Feb 14 Feb 15 Feb 16 Feb 17 Fund Index The inception date of the Fund was 11/5/08. The first day of secondary market trading was 11/7/08. 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 14 for more information. Beginning Account (9/1/16) Actual Ending Account (2/28/17) Expenses Paid During Period a Shareholder Expenses Beginning Account (9/1/16) Hypothetical 5% Return Ending Account (2/28/17) Expenses Paid During Period a Annualized Expense Ratio $ 1, $ $ 0.99 $ 1, $ 1, $ % 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). See Shareholder Expenses on page 14 for more information ishares A NNUAL R EPORT TO S HAREHOLDERS

11 Management s Discussion of Fund Performance (Continued) ishares AGENCY BOND ETF The ishares Agency Bond ETF (the Fund ) seeks to track the investment results of an index composed of agency securities that are publicly issued by U.S. government agencies, and corporate and non-u.s. debt guaranteed by the U.S. government, as represented by the Bloomberg Barclays U.S. Agency Bond Index (formerly the Barclays U.S. Agency Bond 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. For the 12-month reporting period ended, the total return for the Fund was 0.14%, net of fees, while the total return for the Index was 0.24%. ALLOCATION BY INVESTMENT TYPE As of 2/28/17 Percentage of Investment Type Total Investments* U.S. Government & Agency Obligations 95.91% Foreign Government Obligations 4.09 TOTAL % ALLOCATION BY MATURITY As of 2/28/17 Percentage of Maturity Total Investments* 0-1 Year 0.56% 1-5 Years Years Years Years 2.90 More than 20 Years 2.21 TOTAL % * Excludes money market funds. M ANAGEMENT S D ISCUSSIONS OF F UND P ERFORMANCE 11

12 Management s Discussion of Fund Performance ishares MBS ETF Performance as of Average Annual Total Returns Cumulative Total Returns NAV MARKET INDEX NAV MARKET INDEX 1 Year 0.03% 0.06% 0.44% 0.03% 0.06% 0.44% 5 Years 1.77% 1.75% 2.05% 9.15% 9.08% 10.67% Since Inception 3.79% 3.79% 4.16% 44.82% 44.82% 50.11% GROWTH OF $10,000 INVESTMENT (SINCE INCEPTION AT NET ASSET VALUE) $16,000 $14,000 $15,011 $14,482 $12,000 $10,000 $8,000 Feb 08 Feb 09 Feb 10 Feb 11 Feb 12 Feb 13 Feb 14 Feb 15 Feb 16 Feb 17 Fund Index The inception date of the Fund was 3/13/07. The first day of secondary market trading was 3/16/07. 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 14 for more information. Beginning Account (9/1/16) Actual Ending Account (2/28/17) Expenses Paid During Period a Shareholder Expenses Beginning Account (9/1/16) Hypothetical 5% Return Ending Account (2/28/17) Expenses Paid During Period a Annualized Expense Ratio $ 1, $ $ 1.23 $ 1, $ 1, $ % 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). See Shareholder Expenses on page 14 for more information ishares A NNUAL R EPORT TO S HAREHOLDERS

13 Management s Discussion of Fund Performance (Continued) ishares MBS ETF The ishares MBS ETF (the Fund ) seeks to track the investment results of an index composed of investment-grade mortgagebacked pass-through securities issued and/ or guaranteed by U.S. government agencies, as represented by the Bloomberg Barclays U.S. MBS Index (formerly the Barclays U.S. MBS 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. For the 12-month reporting period ended, the total return for the Fund was 0.03%, net of fees, while the total return for the Index was 0.44%. ALLOCATION BY ISSUER As of 2/28/17 Percentage of Issuer Total Investments* Federal National Mortgage Association 45.13% Federal Home Loan Mortgage Corp Government National Mortgage Association TOTAL % ALLOCATION BY MATURITY As of 2/28/17 Percentage of Maturity Total Investments* 1-5 Years 0.04% 5-10 Years Years Years 8.92 More than 20 Years TOTAL % * Excludes money market funds. M ANAGEMENT S D ISCUSSIONS OF F UND P ERFORMANCE 13

14 About Fund Performance Past performance is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at Performance results assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. The investment return and principal value of shares will vary with changes in market conditions. Shares may be worth more or less than their original cost when they are redeemed or sold in the market. Performance for certain funds may reflect a waiver of a portion of investment advisory fees. Without such a waiver, performance would have been lower. Net asset value or NAV is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return ( Market Price ) is determined by using the midpoint between the highest bid and the lowest offer 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. Certain funds may have a NAV which is determined prior to the opening of regular trading on its listed exchange and their market returns are calculated using the midpoint of the bid/ask spread as of the opening of regular trading on the exchange. 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 a 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 on September 1, 2016 and held through, is intended to help you understand your ongoing costs (in dollars and cents) of investing in a 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 corresponding to your Fund under the heading entitled Expenses Paid During Period. Hypothetical Example for Comparison Purposes The table also provides information about hypothetical account values and hypothetical expenses based on each Fund s actual expense ratio and an assumed rate of return of 5% per year before expenses. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions paid on purchases and sales of fund shares. Therefore, the hypothetical examples are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher ishares A NNUAL R EPORT TO S HAREHOLDERS

15 Schedule of Investments ishares INTERMEDIATE GOVERNMENT/CREDIT BOND ETF CORPORATE BONDS & NOTES 34.09% ADVERTISING 0.07% Interpublic Group of Companies Inc. (The) 3.75%, 02/15/23 $ 50 $ 50, %, 03/15/ ,946 Omnicom Group Inc. 3.63%, 05/01/ , %, 11/01/24 (Call 08/01/24) 45 45, %, 08/15/ ,830 WPP Finance %, 09/19/ , %, 11/21/ ,296 1,742,429 AEROSPACE & DEFENSE 0.44% Boeing Co. (The) 0.95%, 05/15/ , %, 10/30/20 (Call 09/30/20) 30 29, %, 06/15/26 (Call 03/15/26) , %, 10/30/25 (Call 07/30/25) 40 39, %, 03/01/27 (Call 12/01/26) , %, 10/30/24 (Call 07/30/24) , %, 02/15/ , %, 03/15/ ,372 Embraer Netherlands Finance BV 5.05%, 06/15/ ,475 General Dynamics Corp. 2.13%, 08/15/26 (Call 05/15/26) , %, 11/15/22 (Call 08/15/22) ,920 Harris Corp. 3.83%, 04/27/25 (Call 01/27/25) , %, 12/15/ , %, 10/01/ ,784 L3 Technologies Inc. 3.85%, 12/15/26 (Call 09/15/26) $ 95 $ 96, %, 10/15/ ,226 Lockheed Martin Corp. 2.50%, 11/23/20 (Call 10/23/20) , %, 03/01/25 (Call 12/01/24) , %, 01/15/23 (Call 11/15/22) , %, 09/15/ , %, 01/15/26 (Call 10/15/25) , %, 11/15/ ,420 Northrop Grumman Corp. 1.75%, 06/01/ , %, 08/01/ , %, 03/15/ ,856 Raytheon Co. 2.50%, 12/15/22 (Call 09/15/22) ,042 Rockwell Collins Inc. 3.70%, 12/15/23 (Call 09/15/23) ,538 Spirit AeroSystems Inc. 3.85%, 06/15/26 (Call 03/15/26) 65 64,733 United Technologies Corp. 1.50%, 11/01/ , %, 11/01/26 (Call 08/01/26) , %, 06/01/ ,994 10,318,698 AGRICULTURE 0.32% Altria Group Inc. 2.63%, 01/14/20 (Call 12/14/19) , %, 09/16/26 (Call 06/16/26) 35 33, %, 08/09/ , %, 01/31/ , %, 05/05/ , %, 11/10/ ,309 S CHEDULES OF I NVESTMENTS 15

16 ishares INTERMEDIATE GOVERNMENT/CREDIT BOND ETF Archer-Daniels-Midland Co. 2.50%, 08/11/26 (Call 05/11/26) $ 300 $ 285, %, 03/01/ , %, 03/15/ ,411 Bunge Ltd. Finance Corp. 3.25%, 08/15/26 (Call 05/15/26) , %, 11/24/20 (Call 10/24/20) a ,382 Philip Morris International Inc. 1.88%, 02/25/21 (Call 01/25/21) , %, 05/10/23 (Call 03/10/23) , %, 08/22/ , %, 02/18/22 (Call 01/18/22) , %, 03/06/ , %, 11/10/ , %, 08/11/25 (Call 05/11/25) , %, 11/15/ , %, 03/26/ , %, 05/16/18 1,052 1,103,737 Reynolds American Inc. 2.30%, 06/12/ , %, 06/12/ , %, 06/12/25 (Call 03/12/25) , %, 09/15/ , %, 06/23/ ,107 7,489,018 AIRLINES 0.04% American Airlines Pass Through Trust Series , Class A 4.95%, 07/15/ ,486 Southwest Airlines Co. 2.65%, 11/05/20 (Call 10/05/20) , %, 11/06/19 (Call 10/06/19) 90 91, %, 11/15/26 (Call 08/15/26) $ 350 $ 332,252 United Airlines Pass Through Trust Series , Class AA 3.10%, 01/07/ , ,375 APPAREL 0.03% NIKE Inc. 2.38%, 11/01/26 (Call 08/01/26) ,695 Ralph Lauren Corp. 2.63%, 08/18/20 (Call 07/18/20) ,360 VF Corp. 3.50%, 09/01/21 (Call 06/01/21) , ,785 AUTO MANUFACTURERS 0.83% American Honda Finance Corp. 1.60%, 07/13/ , %, 07/12/ , %, 02/22/ , %, 03/13/ , %, 08/15/ , %, 09/09/ , %, 09/24/ ,395 Ford Motor Co. 4.35%, 12/08/26 (Call 09/08/26) 70 71,945 Ford Motor Credit Co. LLC 2.02%, 05/03/ , %, 03/27/ , %, 10/05/ , %, 11/04/ , %, 08/04/20 1,000 1,017, %, 01/15/ , %, 01/09/ , %, 01/09/24 (Call 11/09/23) , %, 08/04/25 1,000 1,013, %, 09/20/ , %, 08/02/ , %, 01/15/ , ishares A NNUAL R EPORT TO S HAREHOLDERS

17 ishares INTERMEDIATE GOVERNMENT/CREDIT BOND ETF General Motors Co. 3.50%, 10/02/18 $ 100 $ 102,328 General Motors Financial Co. Inc. 2.35%, 10/04/ , %, 05/09/ , %, 01/15/ , %, 01/15/20 (Call 12/15/19) , %, 11/24/20 (Call 10/24/20) , %, 01/15/25 (Call 10/15/24) 1,520 1,529, %, 10/06/26 (Call 07/06/26) , %, 03/01/21 (Call 02/01/21) , %, 01/17/ , %, 09/25/ , %, 03/01/26 (Call 12/01/25) ,111 PACCAR Financial Corp. 1.30%, 05/10/ , %, 05/18/ , %, 03/09/ , %, 02/27/ , %, 02/25/ , %, 08/14/ ,904 Toyota Motor Credit Corp. 1.55%, 07/13/ , %, 02/19/ , %, 10/24/ , %, 07/18/19 1,325 1,335, %, 03/12/ , %, 01/10/23 a , %, 01/11/ , %, 09/15/ ,246 19,286,369 AUTO PARTS & EQUIPMENT 0.02% BorgWarner Inc. 3.38%, 03/15/25 (Call 12/15/24) 65 64,888 Lear Corp. 5.25%, 01/15/25 (Call 01/15/20) ,090 Magna International Inc. 4.15%, 10/01/25 (Call 07/01/25) $ 250 $ 264, ,151 BANKS 9.78% Australia & New Zealand Banking Group Ltd./New York NY 1.45%, 05/15/ , %, 07/15/ , %, 06/01/ , %, 11/23/ , %, 11/16/25 a ,680 Banco Bilbao Vizcaya Argentaria SA 3.00%, 10/20/ ,258 Bank of America Corp. 2.50%, 10/21/22 (Call 10/21/21) , %, 01/15/19 1,900 1,923, %, 04/19/ , %, 01/11/ , %, 04/19/ , %, 08/01/ , %, 04/01/ , %, 01/22/25 1,400 1,412, %, 07/24/ , %, 01/22/24 1,200 1,256, %, 08/26/ , %, 10/22/ , %, 03/03/ , %, 03/15/ , %, 07/01/20 1,200 1,321, %, 05/01/ , %, 01/24/22 1,825 2,052, %, 07/15/ , %, 04/25/18 1,165 1,232, %, 11/15/ , %, 06/01/ ,527 Series L 1.95%, 05/12/ , %, 04/21/ , %, 04/21/ ,460 Bank of Montreal 1.35%, 08/28/ ,825 S CHEDULES OF I NVESTMENTS 17

18 ishares INTERMEDIATE GOVERNMENT/CREDIT BOND ETF 1.40%, 04/10/18 $ 618 $ 617, %, 04/09/18 (Call 03/09/18) , %, 08/27/ , %, 01/25/19 (Call 12/25/18) , %, 11/06/22 (Call 10/06/22) 50 49,648 Bank of New York Mellon Corp. (The) 1.35%, 03/06/18 (Call 02/06/18) , %, 05/22/18 (Call 04/22/18) , %, 05/03/21 (Call 04/03/21) , %, 08/01/18 (Call 07/02/18) , %, 01/15/19 (Call 12/15/18) , %, 05/15/19 (Call 04/15/19) , %, 09/11/19 (Call 08/11/19) , %, 11/27/20 (Call 10/27/20) , %, 08/17/26 (Call 05/17/26) , %, 04/15/21 (Call 03/15/21) , %, 05/04/26 (Call 02/04/26) , %, 02/24/25 (Call 01/24/25) , %, 05/15/24 (Call 04/15/24) , %, 02/04/24 (Call 01/05/24) ,370 Bank of Nova Scotia (The) 1.45%, 04/25/ , %, 06/11/18 (Call 05/11/18) , %, 01/15/ , %, 10/30/ , %, 10/21/20 $ 452 $ 452, %, 03/22/ , %, 07/21/ , %, 01/13/ , %, 12/16/ ,075 Barclays Bank PLC 6.75%, 05/22/ ,558 Barclays PLC 2.00%, 03/16/ , %, 11/08/ , %, 06/08/20 1,150 1,153, %, 08/10/ , %, 03/16/ , %, 01/12/ , %, 05/12/ ,245 BB&T Corp. 2.05%, 06/19/18 (Call 05/15/18) , %, 05/10/21 (Call 04/09/21) , %, 01/15/20 (Call 12/15/19) , %, 03/22/22 (Call 02/22/22) , %, 04/30/ ,387 BNP Paribas SA 2.40%, 12/12/ , %, 03/17/ , %, 08/20/18 1,066 1,080, %, 10/15/ , %, 01/15/ ,907 BNP Paribas/BNP Paribas U.S. Medium-Term Note Program LLC 3.25%, 03/03/ ,726 BPCE SA 2.25%, 01/27/ , %, 12/10/ , %, 07/15/ , %, 02/03/ , %, 12/02/26 a , %, 04/15/ ,365 Branch Banking & Trust Co. 2.63%, 01/15/22 (Call 12/15/21) , ishares A NNUAL R EPORT TO S HAREHOLDERS

19 ishares INTERMEDIATE GOVERNMENT/CREDIT BOND ETF 2.85%, 04/01/21 (Call 03/01/21) $ 500 $ 507,840 Canadian Imperial Bank of Commerce 1.60%, 09/06/ ,778 Capital One Financial Corp. 2.45%, 04/24/19 (Call 03/24/19) , %, 02/05/25 (Call 01/05/25) , %, 04/24/24 (Call 03/24/24) , %, 07/28/26 (Call 06/28/26) , %, 10/29/25 (Call 09/29/25) ,240 Capital One N.A./Mclean VA 1.50%, 03/22/18 (Call 02/22/18) , %, 09/13/21 (Call 08/13/21) , %, 09/05/19 (Call 08/05/19) , %, 07/23/21 (Call 06/23/21) ,924 Citigroup Inc. 1.75%, 05/01/ , %, 12/07/ , %, 06/07/ , %, 07/30/ , %, 08/02/ , %, 02/18/ , %, 07/29/ , %, 04/08/19 1,375 1,390, %, 10/26/ , %, 03/30/ , %, 12/08/21 (Call 11/08/21) , %, 10/21/26 (Call 07/21/26) , %, 04/27/ , %, 05/01/ , %, 05/15/ , %, 01/12/26 $ 1,500 $ 1,504, %, 06/16/ , %, 10/25/ , %, 03/26/ , %, 08/05/ , %, 06/10/ , %, 01/14/ , %, 03/09/ , %, 08/09/ , %, 09/13/ , %, 05/15/ ,682 Citizens Bank N.A./Providence RI 2.50%, 03/14/19 (Call 02/14/19) ,330 Citizens Financial Group Inc. 2.38%, 07/28/21 (Call 06/28/21) , %, 08/01/25 (Call 07/01/25) 50 51,080 Comerica Bank 2.50%, 06/02/ ,620 Comerica Inc. 2.13%, 05/23/19 (Call 04/23/19) 85 84,936 Commonwealth Bank of Australia/ New York NY 2.30%, 09/06/ , %, 03/12/ , %, 11/02/ , %, 09/20/ ,485 Compass Bank 2.75%, 09/29/19 (Call 08/29/19) , %, 04/10/25 (Call 03/10/25) ,038 Cooperatieve Rabobank UA 3.75%, 07/21/ , %, 11/09/22 1,500 1,540, %, 01/11/ ,439 Cooperatieve Rabobank UA/NY 2.25%, 01/14/19 1,000 1,006, %, 01/19/ , %, 01/10/ ,915 S CHEDULES OF I NVESTMENTS 19

20 ishares INTERMEDIATE GOVERNMENT/CREDIT BOND ETF Credit Suisse AG/New York NY 1.70%, 04/27/18 $ 250 $ 249, %, 05/28/ , %, 10/29/21 1,250 1,263, %, 09/09/24 1,050 1,065, %, 01/14/ ,216 Credit Suisse Group Funding Guernsey Ltd. 3.13%, 12/10/ , %, 04/16/ , %, 03/26/ , %, 09/15/ , %, 06/09/ , %, 04/17/ ,135 Deutsche Bank AG 2.85%, 05/10/ , %, 08/20/ , %, 01/13/ , %, 05/12/ , %, 01/13/ ,525 Deutsche Bank AG/London 2.50%, 02/13/ , %, 05/30/ ,667 Discover Bank/Greenwood DE 2.60%, 11/13/18 (Call 10/12/18) , %, 06/04/20 (Call 05/04/20) , %, 07/27/26 (Call 04/27/26) ,510 Fifth Third Bancorp. 2.30%, 03/01/19 (Call 01/30/19) , %, 07/27/20 (Call 06/27/20) , %, 01/16/24 (Call 12/16/23) , %, 06/01/ ,394 Fifth Third Bank/Cincinnati OH 1.63%, 09/27/19 (Call 08/27/19) , %, 03/15/19 (Call 02/15/19) , %, 04/25/19 (Call 03/25/19) $ 700 $ 707, %, 03/15/26 (Call 02/15/26) ,708 Goldman Sachs Group Inc. (The) 2.30%, 12/13/19 (Call 11/13/19) , %, 11/15/21 (Call 11/15/20) , %, 10/23/ , %, 04/23/20 (Call 03/23/20) , %, 04/25/21 (Call 03/25/21) , %, 09/15/20 (Call 08/15/20) 1,825 1,841, %, 02/25/21 (Call 01/25/21) , %, 07/19/ , %, 04/26/22 (Call 04/26/21) , %, 01/23/25 (Call 10/23/24) , %, 11/16/26 (Call 11/16/25) , %, 01/22/ , %, 05/22/25 (Call 02/22/25) , %, 07/08/24 (Call 04/08/24) , %, 01/26/27 (Call 01/26/26) 1,450 1,464, %, 03/03/24 1,375 1,431, %, 10/21/ , %, 07/27/ , %, 03/15/20 1,000 1,085, %, 01/24/22 1,550 1,748, %, 06/15/ , %, 04/01/18 1,215 1,272, %, 02/15/ ,540 HSBC Bank USA N.A./ New York NY 4.88%, 08/24/ , ishares A NNUAL R EPORT TO S HAREHOLDERS

21 ishares INTERMEDIATE GOVERNMENT/CREDIT BOND ETF HSBC Holdings PLC 2.65%, 01/05/22 $ 645 $ 636, %, 05/25/ , %, 03/08/ , %, 05/25/26 1,000 1,013, %, 03/30/ , %, 03/14/24 1,000 1,018, %, 03/08/ , %, 11/23/ , %, 04/05/ ,346 HSBC USA Inc. 2.35%, 03/05/ , %, 11/13/ , %, 09/24/ , %, 06/23/ ,521 Huntington Bancshares Inc./OH 2.30%, 01/14/22 (Call 12/14/21) ,725 Huntington National Bank (The) 2.20%, 04/01/19 (Call 03/01/19) , %, 04/01/20 (Call 03/01/20) , %, 08/20/20 (Call 07/20/20) ,490 Industrial & Commercial Bank of China Ltd./New York 2.64%, 05/26/ ,025 Intesa Sanpaolo SpA 3.88%, 01/15/ , %, 01/12/ ,090 JPMorgan Chase & Co. 1.63%, 05/15/ , %, 03/22/19 (Call 02/22/19) , %, 10/22/ , %, 01/23/20 (Call 12/23/19) , %, 01/28/ , %, 10/29/20 (Call 09/29/20) 2,950 2,972, %, 03/01/21 (Call 02/01/21) , %, 05/18/23 (Call 03/18/23) $ 250 $ 245, %, 10/01/26 (Call 07/01/26) , %, 01/15/23 (Call 01/15/22) , %, 01/23/25 (Call 10/23/24) , %, 01/25/ , %, 09/23/ , %, 04/01/26 (Call 01/01/26) 1, , %, 05/01/ , %, 05/13/ , %, 02/01/24 1,600 1,669, %, 07/15/25 (Call 04/15/25) , %, 10/15/ , %, 08/15/ , %, 01/24/ , %, 05/10/ , %, 03/25/ , %, 04/23/ ,373 Series H 1.70%, 03/01/18 (Call 02/01/18) ,751 JPMorgan Chase Bank N.A. 1.45%, 09/21/18 (Call 08/21/18) , %, 09/23/19 (Call 08/23/19) ,153 KeyBank N.A./Cleveland OH 2.50%, 11/22/ ,917 KeyCorp 2.30%, 12/13/18 (Call 11/13/18) , %, 09/15/ , %, 03/24/ ,200 KfW 0.88%, 04/19/ , %, 09/07/ , %, 07/15/ , %, 08/06/18 1,165 1,161,703 S CHEDULES OF I NVESTMENTS 21

22 ishares INTERMEDIATE GOVERNMENT/CREDIT BOND ETF 1.13%, 11/16/18 $ 1,300 $ 1,293, %, 09/30/ , %, 02/06/19 1,900 1,900, %, 04/20/20 3,625 3,592, %, 03/15/21 a 2,000 1,969, %, 04/01/19 2,150 2,166, %, 06/30/20 1,000 1,000, %, 11/30/ , %, 05/02/25 1,700 1,635, %, 01/17/ , %, 11/20/24 1,200 1,203, %, 01/25/ , %, 09/08/ , %, 10/01/20 1,300 1,336, %, 01/27/ ,476 Series G 4.38%, 03/15/18 1,247 1,287,141 Korea Development Bank (The) 2.25%, 05/18/ , %, 09/14/ , %, 01/13/26 a , %, 11/16/ ,150 Landwirtschaftliche Rentenbank 1.00%, 04/04/ , %, 10/23/ , %, 09/17/ , %, 01/13/ , %, 10/01/ , %, 06/10/ ,097 Lloyds Bank PLC 2.05%, 01/22/ , %, 08/17/ , %, 01/21/ ,706 Lloyds Banking Group PLC 3.75%, 01/11/ , %, 12/10/ , %, 03/24/ ,724 Manufacturers & Traders Trust Co. 1.45%, 03/07/18 (Call 02/05/18) 1, , %, 01/30/19 (Call 12/30/18) , %, 02/06/25 (Call 01/06/25) ,463 Mitsubishi UFJ Financial Group Inc. 2.76%, 09/13/26 $ 250 $ 234, %, 03/01/ , %, 02/22/ , %, 03/01/ ,210 Mizuho Financial Group Inc. 2.27%, 09/13/ , %, 02/28/ ,155 Morgan Stanley 2.13%, 04/25/ , %, 07/23/ , %, 02/01/ , %, 01/24/ , %, 11/17/ , %, 01/27/ , %, 07/27/ , %, 01/20/ , %, 10/23/24 1,140 1,163, %, 01/27/ , %, 07/23/ , %, 05/22/ , %, 09/08/26 1,350 1,387, %, 11/01/ , %, 01/26/ , %, 07/24/ , %, 07/28/ , %, 09/23/ , %, 01/25/21 1,175 1,309, %, 04/01/18 2,603 2,738, %, 05/13/ ,160 Series F 3.88%, 04/29/24 1,100 1,136,806 MUFG Americas Holdings Corp. 3.00%, 02/10/25 (Call 01/10/25) ,383 MUFG Union Bank N.A. 2.63%, 09/26/18 (Call 08/26/18) ,115 National Australia Bank Ltd./New York 2.30%, 07/25/ , %, 07/12/ , %, 07/23/ , %, 01/14/ , ishares A NNUAL R EPORT TO S HAREHOLDERS

23 ishares INTERMEDIATE GOVERNMENT/CREDIT BOND ETF 2.80%, 01/10/22 $ 250 $ 252, %, 01/14/ ,717 National Bank of Canada 2.10%, 12/14/ ,135 National City Corp. 6.88%, 05/15/ ,369 Northern Trust Corp. 3.38%, 08/23/ , %, 11/04/ ,080 Oesterreichische Kontrollbank AG 1.13%, 05/29/ , %, 04/26/ , %, 02/10/ , %, 10/21/ , %, 01/20/ ,770 PNC Bank N.A. 2.15%, 04/29/21 (Call 03/30/21) b , %, 01/28/19 (Call 12/29/18) b , %, 06/01/20 (Call 05/02/20) b , %, 11/01/22 (Call 10/01/22) b , %, 02/23/25 (Call 01/24/25) b , %, 06/01/25 (Call 05/02/25) b , %, 11/01/25 (Call 10/02/25) b ,032 PNC Financial Services Group Inc. (The) 3.30%, 03/08/22 (Call 02/06/22) b , %, 04/29/24 (Call 03/29/24) b , %, 08/11/20 b ,292 RBC USA Holdco Corp. 5.25%, 09/15/ ,284 Regions Bank/Birmingham AL 2.25%, 09/14/18 (Call 08/14/18) ,945 Regions Financial Corp. 3.20%, 02/08/21 (Call 01/08/21) $ 250 $ 254,790 Royal Bank of Canada 1.63%, 04/15/ , %, 12/10/ , %, 03/02/ , %, 03/15/ , %, 03/06/ , %, 07/27/ , %, 10/30/ , %, 01/27/ ,415 Royal Bank of Scotland Group PLC 3.88%, 09/12/ , %, 04/05/ , %, 10/21/ ,125 Santander Holdings USA Inc. 2.65%, 04/17/20 (Call 03/17/20) , %, 08/27/18 (Call 07/27/18) , %, 07/17/25 (Call 04/17/25) ,692 Santander Issuances SAU 5.18%, 11/19/ ,088 Santander UK Group Holdings PLC 2.88%, 10/16/ , %, 01/08/ ,213 Santander UK PLC 2.00%, 08/24/ , %, 03/16/ , %, 03/14/ , %, 08/23/ , %, 03/13/ ,790 Skandinaviska Enskilda Banken AB 1.88%, 09/13/ ,663 State Street Corp. 1.35%, 05/15/ , %, 05/19/ , %, 05/19/ , %, 08/18/ , %, 11/20/ , %, 03/07/ ,966 S CHEDULES OF I NVESTMENTS 23

24 ishares INTERMEDIATE GOVERNMENT/CREDIT BOND ETF Sumitomo Mitsui Banking Corp. 2.45%, 01/16/20 $ 3,150 $ 3,160, %, 10/20/ , %, 07/19/ , %, 07/23/ ,355 Sumitomo Mitsui Financial Group Inc. 2.93%, 03/09/ , %, 10/19/ , %, 01/11/ , %, 03/09/ ,358 SunTrust Bank/Atlanta GA 3.30%, 05/15/26 (Call 04/15/26) , %, 03/15/ ,965 SunTrust Banks Inc. 2.35%, 11/01/18 (Call 10/01/18) 12 12, %, 01/27/22 (Call 12/27/21) , %, 03/03/21 (Call 02/03/21) ,410 SVB Financial Group 3.50%, 01/29/ ,742 Svenska Handelsbanken AB 1.50%, 09/06/ , %, 09/07/ , %, 10/01/ , %, 03/30/ , %, 01/25/ ,865 Toronto-Dominion Bank (The) 1.40%, 04/30/ , %, 09/06/ , %, 03/13/ , %, 07/23/ , %, 07/13/ , %, 07/02/ , %, 04/07/ , %, 11/05/ , %, 12/14/ , %, 09/10/ ,336 U.S. Bancorp. 1.95%, 11/15/18 (Call 10/15/18) 16 16, %, 01/29/21 (Call 12/29/20) $ 250 $ 250, %, 01/24/22 (Call 12/23/21) , %, 07/15/22 (Call 06/15/22) , %, 04/27/26 (Call 03/27/26) , %, 01/30/24 (Call 12/29/23) 75 78, %, 05/24/21 (Call 04/23/21) ,150 Series F 3.60%, 09/11/24 (Call 08/11/24) ,192 Series V 2.38%, 07/22/26 (Call 06/22/26) ,235 U.S. Bank N.A./Cincinnati OH 2.13%, 10/28/19 (Call 09/28/19) , %, 01/27/25 (Call 12/27/24) ,460 UBS AG/Stamford CT 1.80%, 03/26/ , %, 03/26/ , %, 08/14/19 1,000 1,008, %, 04/25/18 1,100 1,150,897 Wells Fargo & Co. 2.10%, 07/26/ , %, 04/22/ , %, 01/15/ , %, 03/04/ , %, 12/07/ , %, 07/22/ , %, 02/19/25 1,525 1,489, %, 04/22/26 1,250 1,205, %, 09/09/ , %, 03/08/ , %, 09/29/25 1,121 1,130, %, 06/03/ , %, 04/01/ ,787 Series M 3.45%, 02/13/ , ishares A NNUAL R EPORT TO S HAREHOLDERS

25 ishares INTERMEDIATE GOVERNMENT/CREDIT BOND ETF Series N 2.15%, 01/30/20 $ 907 $ 908,070 Wells Fargo Bank N.A. 1.75%, 05/24/ , %, 12/06/ ,550 Westpac Banking Corp. 1.55%, 05/25/ , %, 08/19/ , %, 05/13/ , %, 11/23/ , %, 08/19/ , %, 05/13/ , %, 11/23/20 1,000 1,006, %, 08/19/ , %, 01/11/ , %, 05/13/ , %, 03/08/ , %, 11/19/ , ,182,405 BEVERAGES 0.92% Anheuser-Busch InBev Finance Inc. 1.90%, 02/01/19 1,095 1,098, %, 02/01/ , %, 02/01/21 (Call 01/01/21) 1,735 1,753, %, 02/01/23 (Call 12/01/22) 1,250 1,276, %, 02/01/26 (Call 11/01/25) 2,225 2,262, %, 02/01/ ,915 Anheuser-Busch InBev Worldwide Inc. 2.50%, 07/15/ , %, 01/15/20 1,050 1,146, %, 01/15/ ,388 Beam Suntory Inc. 3.25%, 05/15/22 (Call 02/15/22) ,990 Brown-Forman Corp. 2.25%, 01/15/23 (Call 10/15/22) ,340 Coca-Cola Bottling Co. Consolidated 3.80%, 11/25/25 (Call 08/25/25) ,833 Coca-Cola Co. (The) 1.15%, 04/01/18 $ 18 $ 17, %, 05/30/ , %, 09/01/ , %, 03/14/ , %, 11/01/ , %, 10/27/ , %, 09/01/ , %, 11/01/ , %, 06/01/ , %, 10/27/ , %, 11/01/ , %, 09/01/ ,270 Coca-Cola FEMSA SAB de CV 2.38%, 11/26/ ,730 Constellation Brands Inc. 3.70%, 12/06/26 (Call 09/06/26) ,820 Diageo Capital PLC 2.63%, 04/29/23 (Call 01/29/23) ,463 Diageo Investment Corp. 2.88%, 05/11/ ,282 Dr Pepper Snapple Group Inc. 2.55%, 09/15/26 (Call 06/15/26) , %, 12/15/23 (Call 10/15/23) , %, 11/15/21 (Call 08/15/21) , %, 11/15/25 (Call 08/15/25) , %, 05/01/18 5 5,295 Molson Coors Brewing Co. 2.10%, 07/15/21 (Call 06/15/21) ,545 PepsiCo Inc. 1.35%, 10/04/ , %, 02/22/ , %, 10/14/20 (Call 09/14/20) 1,000 1,005, %, 01/07/19 (Call 12/07/18) ,566 S CHEDULES OF I NVESTMENTS 25

26 ishares INTERMEDIATE GOVERNMENT/CREDIT BOND ETF 2.38%, 10/06/26 (Call 07/06/26) $ 250 $ 237, %, 03/05/ , %, 04/30/25 (Call 01/30/25) , %, 02/24/26 (Call 11/24/25) , %, 08/25/ , %, 11/01/ , %, 03/01/24 (Call 12/01/23) , %, 06/01/ ,607 21,454,015 BIOTECHNOLOGY 0.54% Amgen Inc. 1.85%, 08/19/21 (Call 07/19/21) 85 82, %, 05/01/20 (Call 04/01/20) , %, 05/22/19 (Call 04/22/19) 1,200 1,210, %, 08/19/26 (Call 05/19/26) , %, 05/22/24 (Call 02/22/24) , %, 11/15/21 (Call 08/15/21) , %, 06/15/21 (Call 03/15/21) , %, 03/15/ , %, 02/01/ , %, 06/01/ ,542 Baxalta Inc. 2.00%, 06/22/ , %, 06/23/20 (Call 05/23/20) , %, 06/23/25 (Call 03/23/25) ,784 Bio-Rad Laboratories Inc. 4.88%, 12/15/ ,689 Biogen Inc. 2.90%, 09/15/ , %, 09/15/25 (Call 06/15/25) , %, 03/01/ ,273 Celgene Corp. 2.25%, 05/15/19 $ 400 $ 401, %, 08/15/ , %, 08/15/ , %, 08/15/25 (Call 05/15/25) , %, 10/15/ , %, 08/15/ ,313 Gilead Sciences Inc. 1.85%, 09/04/ , %, 03/01/22 (Call 02/01/22) , %, 04/01/ , %, 09/01/ , %, 09/01/22 (Call 07/01/22) , %, 02/01/25 (Call 11/01/24) , %, 03/01/26 (Call 12/01/25) , %, 04/01/24 (Call 01/01/24) , %, 04/01/21 (Call 01/01/21) ,540 12,536,182 BUILDING MATERIALS 0.07% CRH America Inc. 8.13%, 07/15/ ,160 Fortune Brands Home & Inc. 3.00%, 06/15/20 (Call 05/15/20) ,783 Johnson Controls International PLC 3.63%, 07/02/24 (Call 04/02/24) c 25 25, %, 12/01/21 (Call 09/01/21) , %, 02/14/26 (Call 11/14/25) , %, 03/01/ ,114 Lennox International Inc. 3.00%, 11/15/23 (Call 09/15/23) 80 78, ishares A NNUAL R EPORT TO S HAREHOLDERS

27 ishares INTERMEDIATE GOVERNMENT/CREDIT BOND ETF Owens Corning 4.20%, 12/15/22 (Call 09/15/22) $ 150 $ 156, %, 12/01/24 (Call 09/01/24) ,943 Vulcan Materials Co. 4.50%, 04/01/25 (Call 01/01/25) , %, 06/15/ ,445 1,696,205 CHEMICALS 0.57% Agrium Inc. 3.15%, 10/01/22 (Call 07/01/22) , %, 06/01/23 (Call 03/01/23) 75 75,841 Air Products & Chemicals Inc. 3.35%, 07/31/24 (Call 04/30/24) ,490 Airgas Inc. 2.38%, 02/15/20 (Call 01/15/20) 75 75, %, 08/01/20 (Call 07/01/20) , %, 07/15/24 (Call 04/15/24) ,879 Cabot Corp. 3.40%, 09/15/26 (Call 06/15/26) , %, 07/15/ ,195 Cytec Industries Inc. 3.50%, 04/01/23 (Call 01/01/23) ,333 Dow Chemical Co. (The) 3.00%, 11/15/22 (Call 08/15/22) , %, 10/01/24 (Call 07/01/24) , %, 11/15/21 (Call 08/15/21) , %, 11/15/20 (Call 08/15/20) , %, 05/15/ , %, 05/15/ ,356 Eastman Chemical Co. 2.70%, 01/15/20 (Call 12/15/19) $ 470 $ 477, %, 08/15/22 (Call 05/15/22) , %, 11/15/ ,243 EI du Pont de Nemours & Co. 2.80%, 02/15/ , %, 01/15/ , %, 04/01/ , %, 01/15/ , %, 03/15/ , %, 07/15/ ,320 FMC Corp. 4.10%, 02/01/24 (Call 11/01/23) ,534 LyondellBasell Industries NV 5.00%, 04/15/19 (Call 01/15/19) , %, 04/15/24 (Call 01/15/24) , %, 11/15/21 (Call 08/17/21) ,912 Methanex Corp. 4.25%, 12/01/24 (Call 09/01/24) ,000 Monsanto Co. 2.13%, 07/15/ , %, 07/15/24 (Call 04/15/24) ,574 Mosaic Co. (The) 3.75%, 11/15/21 (Call 08/15/21) ,273 Potash Corp. of Saskatchewan Inc. 3.00%, 04/01/25 (Call 01/01/25) , %, 03/15/24 (Call 12/15/23) , %, 12/15/26 (Call 09/15/26) , %, 05/15/ ,532 PPG Industries Inc. 2.30%, 11/15/19 (Call 10/15/19) , %, 11/15/ ,440 S CHEDULES OF I NVESTMENTS 27