2018 SEMI-ANNUAL REPORT (UNAUDITED)

Transcription

1 FEBRUARY 28, SEMI-ANNUAL REPORT (UNAUDITED) ishares Trust ishares Currency Hedged MSCI United Kingdom ETF HEWU NYSE Arca ishares MSCI United Kingdom ETF EWU NYSE Arca ishares MSCI United Kingdom Small-Cap ETF EWUS Cboe BZX

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3 Table of Contents Fund Performance Overviews... 5 About Fund Performance... 8 Shareholder Expenses... 8 Schedules of Investments... 9 ishares Currency Hedged MSCI United Kingdom ETF... 9 ishares MSCI United Kingdom ETF ishares MSCI United Kingdom Small-Cap ETF Financial Statements Financial Highlights Notes to Financial Statements Supplemental Information General Information... 42

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5 Fund Performance Overview ishares CURRENCY HEDGED MSCI UNITED KINGDOM ETF Performance as of February 28, 2018 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. For the six-month reporting period ended February 28, 2018, the total return for the Fund was -1.35%, net of fees, while the total return for the Index was -0.84%. Average Annual Total Returns Cumulative Total Returns NAV MARKET INDEX NAV MARKET INDEX 1 Year 2.95% 3.08% 4.25% 2.95% 3.08% 4.25% Since Inception 7.24% 7.24% 7.62% 20.53% 20.52% 21.67% 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 8 for more information. Beginning Account Value (9/1/17) Actual Ending Account Value (2/28/18) Expenses Paid During Period a,b Shareholder Expenses Beginning Account Value (9/1/17) Hypothetical 5% Return Ending Account Value (2/28/18) Expenses Paid During Period a,b Annualized Expense Ratio a $ 1, $ $ 0.00 $ 1, $ 1, $ % 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). See Shareholder Expenses on page 8 for more information. ALLOCATION BY SECTOR 1 As of 2/28/18 Percentage of Sector Total Investments 2 Financials 23.09% Consumer Staples Energy Materials 9.77 Health Care 9.13 Consumer Discretionary 8.62 Industrials 7.81 Telecommunication Services 4.02 Utilities 2.92 Real Estate 1.20 Information Technology 1.08 TOTAL % Security TEN LARGEST FUND HOLDINGS 1 As of 2/28/18 Percentage of Total Investments 2 HSBC Holdings PLC 7.74% Royal Dutch Shell PLC Class A ADR 5.65 British American Tobacco PLC 5.32 BP PLC 5.08 Royal Dutch Shell PLC Class B 4.70 GlaxoSmithKline PLC 3.47 Diageo PLC 3.31 AstraZeneca PLC 3.26 Vodafone Group PLC 2.93 Lloyds Banking Group PLC 2.67 TOTAL 44.13% 1 Table shown is for the ishares MSCI United Kingdom ETF, the underlying fund in which the Fund invests. 2 Excludes money market funds. F UND P ERFORMANCE O VERVIEWS 5

6 Fund Performance Overview ishares MSCI UNITED KINGDOM ETF Performance as of February 28, 2018 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. For the six-month reporting period ended February 28, 2018, the total return for the Fund was 5.06%, net of fees, while the total return for the Index was 5.35%. Average Annual Total Returns Cumulative Total Returns NAV MARKET INDEX NAV MARKET INDEX 1 Year 13.61% 13.19% 14.17% 13.61% 13.19% 14.17% 5 Years 3.67% 3.55% 4.19% 19.76% 19.07% 22.79% 10 Years 1.55% 1.58% 2.09% 16.64% 16.99% 22.96% Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See About Fund Performance on page 8 for more information. Beginning Account Value (9/1/17) Actual Ending Account Value (2/28/18) Expenses Paid During Period a Shareholder Expenses Beginning Account Value (9/1/17) Hypothetical 5% Return Ending Account Value (2/28/18) Expenses Paid During Period a Annualized Expense Ratio $ 1, $ 1, $ 2.39 $ 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 8 for more information. ALLOCATION BY SECTOR As of 2/28/18 Percentage of Sector Total Investments* Financials 23.09% Consumer Staples Energy Materials 9.77 Health Care 9.13 Consumer Discretionary 8.62 Industrials 7.81 Telecommunication Services 4.02 Utilities 2.92 Real Estate 1.20 Information Technology 1.08 TOTAL % TEN LARGEST FUND HOLDINGS As of 2/28/18 Percentage of Security Total Investments* HSBC Holdings PLC 7.74% Royal Dutch Shell PLC Class A ADR 5.65 British American Tobacco PLC 5.32 BP PLC 5.08 Royal Dutch Shell PLC Class B 4.70 GlaxoSmithKline PLC 3.47 Diageo PLC 3.31 AstraZeneca PLC 3.26 Vodafone Group PLC 2.93 Lloyds Banking Group PLC 2.67 TOTAL 44.13% * Excludes money market funds ishares S EMI-ANNUAL R EPORT TO S HAREHOLDERS

7 Fund Performance Overview ishares MSCI UNITED KINGDOM SMALL-CAP ETF Performance as of February 28, 2018 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. For the six-month reporting period ended February 28, 2018, the total return for the Fund was 8.79%, net of fees, while the total return for the Index was 9.14%. Average Annual Total Returns Cumulative Total Returns NAV MARKET INDEX NAV MARKET INDEX 1 Year 22.47% 22.60% 23.25% 22.47% 22.60% 23.25% 5 Years 9.11% 8.97% 9.77% 54.65% 53.65% 59.39% Since Inception 11.92% 11.86% 12.59% 98.67% 98.06% % The inception date of the Fund was 1/25/12. The first day of secondary market trading was 1/26/12. Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See About Fund Performance on page 8 for more information. Beginning Account Value (9/1/17) Actual Ending Account Value (2/28/18) Expenses Paid During Period a Shareholder Expenses Beginning Account Value (9/1/17) Hypothetical 5% Return Ending Account Value (2/28/18) Expenses Paid During Period a Annualized Expense Ratio $ 1, $ 1, $ 3.05 $ 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 8 for more information. ALLOCATION BY SECTOR As of 2/28/18 Percentage of Sector Total Investments* Consumer Discretionary 23.62% Industrials Financials Information Technology Real Estate 8.70 Materials 8.57 Health Care 6.15 Consumer Staples 4.30 Energy 2.64 Utilities 1.24 Telecommunication Services 0.97 TOTAL % TEN LARGEST FUND HOLDINGS As of 2/28/18 Percentage of Security Total Investments* Informa PLC 1.65% Rentokil Initial PLC 1.53 DS Smith PLC 1.47 Just Eat PLC 1.37 Halma PLC 1.32 Melrose Industries PLC 1.27 Spirax-Sarco Engineering PLC 1.21 ASOS PLC 1.16 Hiscox Ltd Rightmove PLC 1.13 TOTAL 13.26% * Excludes money market funds. F UND P ERFORMANCE O VERVIEWS 7

8 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, 2017 and held through February 28, 2018, 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 S EMI-ANNUAL R EPORT TO S HAREHOLDERS

9 Schedule of Investments (Unaudited) ishares CURRENCY HEDGED MSCI UNITED KINGDOM ETF February 28, 2018 Security Shares Value INVESTMENT COMPANIES 98.66% EXCHANGE-TRADED FUNDS 98.66% ishares MSCI United Kingdom ETF a,b 394,245 $13,668,474 13,668,474 TOTAL INVESTMENT COMPANIES (Cost: $13,222,450) 13,668,474 SHORT-TERM INVESTMENTS 26.04% MONEY MARKET FUNDS 26.04% BlackRock Cash Funds: Institutional, SL Agency Shares 1.58% b,c,d 3,599,640 3,600,000 BlackRock Cash Funds: Treasury, SL Agency Shares 1.32% b,c 6,988 6,988 3,606,988 Value TOTAL INVESTMENTS IN SECURITIES % (Cost: $16,829,438) $17,275,462 Other Assets, Less Liabilities (24.70)% (3,421,396) NET ASSETS % $13,854,066 a All or a portion of this security is on loan. b Affiliate of the Fund. c Annualized 7-day yield as of period end. d All or a portion of this security was purchased with cash collateral received from loaned securities. TOTAL SHORT-TERM INVESTMENTS (Cost: $3,606,988) 3,606,988 Affiliates (Note 2) Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2018, for purposes of Section 2(a)(3) of the 1940 Act were as follows: Affiliated issuer Shares held at 08/31/17 Shares purchased Shares sold Shares held at 02/28/18 Value at 02/28/18 Income Net realized gain (loss) a Change in unrealized appreciation (depreciation) BlackRock Cash Funds: Institutional, SL Agency Shares 3,599,640 b 3,599,640 $ 3,600,000 $ 3,477 c $ (368) $ BlackRock Cash Funds: Treasury, SL Agency Shares 11,765 (4,777) b 6,988 6, ishares MSCI United Kingdom ETF 564, ,796 (302,026) 394,245 13,668, ,644 1,046,778 (265,354) $17,275,462 $341,170 $ 1,046,410 $ (265,354) a b c Includes realized capital gain distributions from an affiliated fund, if any. Net of purchases and sales. Includes the Fund s portion of securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. S CHEDULES OF I NVESTMENTS 9

10 Schedule of Investments (Unaudited) (Continued) ishares CURRENCY HEDGED MSCI UNITED KINGDOM ETF February 28, 2018 Forward Currency Contracts (Note 6) Forward currency contracts outstanding as of February 28, 2018 were as follows: Currency purchased Currency sold Counterparty Settlement date Unrealized appreciation (depreciation) USD 13,442,425 GBP 9,514,043 BNP 03/02/2018 $ 344,448 USD 47,931 GBP 33,899 BOA 03/02/2018 1,262 USD 3,691,191 GBP 2,644,116 MS 03/02/ ,039 USD 12,485,473 GBP 8,941,942 HSBC 04/05/ ,103 USD 1,840,672 GBP 1,322,058 MS 04/05/ , ,489 GBP 8,941,942 USD 12,465,201 HSBC 03/02/2018 $ (154,835) GBP 3,250,116 USD 4,521,684 MS 03/02/2018 (47,252) GBP 284,000 USD 391,971 MS 04/05/2018 (353) (202,440) Net unrealized appreciation $ 367,049 Counterparties: BNP BNP Paribas SA BOA Bank of America N.A. HSBC HSBC Bank PLC MS Morgan Stanley and Co. International PLC Currency abbreviations: GBP British Pound USD United States Dollar 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, see Note 1. The following table summarizes the value of the Fund s investments according to the fair value hierarchy as of February 28, 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 $13,668,474 $ $ $13,668,474 Money market funds 3,606,988 3,606,988 Total $17,275,462 $ $ $17,275,462 Derivative financial instruments a Assets Forward currency contracts $ $ 569,489 $ $ 569,489 Liabilities Forward currency contracts (202,440) (202,440) Total $ $ 367,049 $ $ 367,049 a Shown at the unrealized appreciation (depreciation) on the contracts. See notes to financial statements ishares S EMI-ANNUAL R EPORT TO S HAREHOLDERS

11 Schedule of Investments (Unaudited) ishares MSCI UNITED KINGDOM ETF February 28, 2018 Security Shares Value COMMON STOCKS 99.15% AEROSPACE & DEFENSE 2.06% BAE Systems PLC 3,191,909 $ 25,481,863 Cobham PLC a 2,380,818 3,721,627 Meggitt PLC 776,072 4,839,704 Rolls-Royce Holdings PLC 1,655,748 19,154,413 53,197,607 AIR FREIGHT & LOGISTICS 0.27% Royal Mail PLC 904,236 6,977,053 6,977,053 AIRLINES 0.14% easyjet PLC 159,884 3,698,775 3,698,775 AUTO COMPONENTS 0.40% GKN PLC 1,723,345 10,395,615 10,395,615 BANKS 14.22% Barclays PLC 17,059,530 50,184,214 HSBC Holdings PLC 20,012, ,733,531 Lloyds Banking Group PLC 72,031,038 68,282,639 Royal Bank of Scotland Group PLC a 3,591,864 13,248,614 Standard Chartered PLC a 3,298,951 36,854, ,303,605 BEVERAGES 3.52% Coca-Cola HBC AG a 182,933 6,011,497 Diageo PLC 2,497,288 84,645,899 90,657,396 BIOTECHNOLOGY 1.51% Shire PLC 909,443 38,958,156 38,958,156 CAPITAL MARKETS 2.19% 3i Group PLC 974,155 12,611,689 Hargreaves Lansdown PLC 258,713 6,150,854 Investec PLC 673,395 5,891,770 London Stock Exchange Group PLC 312,658 17,352,466 Schroders PLC 123,761 5,881,379 St. James s Place PLC 530,362 8,436,621 56,324,779 CHEMICALS 0.65% Croda International PLC 131,647 8,383,842 Security Shares Value Johnson Matthey PLC 194,086 $ 8,383,666 16,767,508 COMMERCIAL SERVICES & SUPPLIES 0.31% Babcock International Group PLC 253,948 2,280,664 G4S PLC 1,544,784 5,585,136 7,865,800 DIVERSIFIED FINANCIAL SERVICES 0.53% Standard Life Aberdeen PLC 2,682,706 13,606,333 13,606,333 DIVERSIFIED TELECOMMUNICATION SERVICES 1.08% BT Group PLC 8,421,815 27,826,402 27,826,402 ELECTRIC UTILITIES 0.67% SSE PLC 1,017,223 17,169,373 17,169,373 ENERGY EQUIPMENT & SERVICES 0.22% John Wood Group PLC 671,419 5,670,956 5,670,956 EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) 1.19% British Land Co. PLC (The) 954,840 8,262,138 Hammerson PLC 794,187 4,891,392 Land Securities Group PLC 742,438 9,482,921 Segro PLC 1,005,368 7,918,072 30,554,523 FOOD & STAPLES RETAILING 1.42% J Sainsbury PLC 1,653,380 5,900,307 Tesco PLC 8,183,758 23,769,802 Wm Morrison Supermarkets PLC 2,226,206 6,923,076 36,593,185 FOOD PRODUCTS 0.50% Associated British Foods PLC 356,139 12,910,485 12,910,485 HEALTH CARE EQUIPMENT & SUPPLIES 0.74% ConvaTec Group PLC b,c 1,358,351 3,864,864 Smith & Nephew PLC 875,593 15,303,647 19,168,511 HEALTH CARE PROVIDERS & SERVICES 0.12% Mediclinic International PLC b 370,416 3,020,417 3,020,417 HOTELS, RESTAURANTS & LEISURE 3.11% Carnival PLC 185,130 12,241,362 S CHEDULES OF I NVESTMENTS 11

12 Schedule of Investments (Unaudited) (Continued) ishares MSCI UNITED KINGDOM ETF February 28, 2018 Security Shares Value Compass Group PLC 1,584,497 $ 33,752,278 InterContinental Hotels Group PLC 180,605 11,693,308 Merlin Entertainments PLC c 716,279 3,355,547 TUI AG 440,944 9,383,688 Whitbread PLC 183,418 9,813,220 80,239,403 HOUSEHOLD DURABLES 1.31% Barratt Developments PLC 1,015,032 7,538,252 Berkeley Group Holdings PLC 129,245 6,863,216 Persimmon PLC 308,869 11,069,216 Taylor Wimpey PLC 3,276,512 8,397,053 33,867,737 HOUSEHOLD PRODUCTS 2.07% Reckitt Benckiser Group PLC 668,989 53,241,263 53,241,263 INDUSTRIAL CONGLOMERATES 0.66% DCC PLC 89,259 8,160,093 Smiths Group PLC 396,835 8,734,801 16,894,894 INSURANCE 5.96% Admiral Group PLC 202,194 5,134,472 Aviva PLC 4,014,823 27,968,917 Direct Line Insurance Group PLC 1,374,666 7,250,556 Legal & General Group PLC 5,958,693 21,559,958 Old Mutual PLC 4,944,210 17,392,015 Prudential PLC 2,588,182 65,277,984 RSA Insurance Group PLC 1,023,847 8,907, ,491,115 INTERNET SOFTWARE & SERVICES 0.19% Auto Trader Group PLC c 966,452 4,860,437 4,860,437 MACHINERY 0.42% IMI PLC 270,582 4,574,521 Weir Group PLC (The) 225,353 6,321,837 10,896,358 MEDIA 2.31% ITV PLC 3,606,774 7,951,354 Pearson PLC 807,705 8,150,857 Sky PLC 1,032,570 19,178,365 WPP PLC 1,263,955 24,277,087 59,557,663 Security Shares Value METALS & MINING 8.66% Anglo American PLC 1,336,096 $ 32,779,794 Antofagasta PLC 394,319 4,726,821 BHP Billiton PLC 2,114,007 43,231,573 Fresnillo PLC 220,399 3,703,340 Glencore PLC 12,251,012 65,216,136 Randgold Resources Ltd. 94,218 7,591,777 Rio Tinto PLC 1,218,381 65,907, ,157,056 MULTI-UTILITIES 1.77% Centrica PLC 5,595,852 11,025,656 National Grid PLC 3,395,586 34,631,077 45,656,733 MULTILINE RETAIL 0.63% Marks & Spencer Group PLC 1,613,781 6,572,812 Next PLC 145,914 9,762,877 16,335,689 OIL, GAS & CONSUMABLE FUELS 15.29% BP PLC 19,802, ,641,097 Royal Dutch Shell PLC Class A ADR 4,549, ,231,188 Royal Dutch Shell PLC Class B 3,749, ,912, ,784,435 PAPER & FOREST PRODUCTS 0.37% Mondi PLC 367,566 9,632,700 9,632,700 PERSONAL PRODUCTS 2.46% Unilever PLC 1,233,085 63,432,431 63,432,431 PHARMACEUTICALS 6.68% AstraZeneca PLC 1,267,069 83,363,478 GlaxoSmithKline PLC 4,923,034 88,670, ,033,550 PROFESSIONAL SERVICES 2.11% Capita PLC 666,246 1,617,035 Experian PLC 924,826 19,827,676 Intertek Group PLC 161,642 10,942,162 RELX PLC 1,066,939 21,948,335 54,335,208 SOFTWARE 0.88% Micro Focus International PLC b 436,594 12,410,211 Sage Group PLC (The) 1,083,373 10,338,623 22,748, ishares S EMI-ANNUAL R EPORT TO S HAREHOLDERS

13 Schedule of Investments (Unaudited) (Continued) ishares MSCI UNITED KINGDOM ETF February 28, 2018 Security Shares Value SPECIALTY RETAIL 0.42% Kingfisher PLC 2,184,556 $ 10,772,762 10,772,762 TEXTILES, APPAREL & LUXURY GOODS 0.35% Burberry Group PLC 426,667 9,015,193 9,015,193 TOBACCO 6.61% British American Tobacco PLC 2,295, ,868,726 Imperial Brands PLC 954,933 34,459, ,328,354 TRADING COMPANIES & DISTRIBUTORS 1.78% Ashtead Group PLC 499,179 14,539,969 Bunzl PLC 336,426 9,062,301 Ferguson PLC 250,294 17,746,896 Travis Perkins PLC 249,344 4,414,731 45,763,897 WATER UTILITIES 0.46% Severn Trent PLC 237,224 5,581,122 United Utilities Group PLC 677,939 6,222,966 11,804,088 WIRELESS TELECOMMUNICATION SERVICES 2.91% Vodafone Group PLC 26,697,404 74,949,516 74,949,516 TOTAL COMMON STOCKS (Cost: $2,909,221,780) 2,554,465,795 Security Shares Value SHORT-TERM INVESTMENTS 0.12% MONEY MARKET FUNDS 0.12% BlackRock Cash Funds: Institutional, SL Agency Shares 1.58% d,e,f 2,444,142 $ 2,444,386 BlackRock Cash Funds: Treasury, SL Agency Shares 1.32% d,e 685, ,018 3,129,404 TOTAL SHORT-TERM INVESTMENTS (Cost: $3,129,404) 3,129,404 TOTAL INVESTMENTS IN SECURITIES 99.27% (Cost: $2,912,351,184) 2,557,595,199 Other Assets, Less Liabilities 0.73% 18,679,785 NET ASSETS % $2,576,274,984 ADR American Depositary Receipts a Non-income producing security. b All or a portion of this security is on loan. c Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. d Affiliate of the Fund. e Annualized 7-day yield as of period end. f All or a portion of this security was purchased with cash collateral received from loaned securities. Affiliates (Note 2) Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2018, for purposes of Section 2(a)(3) of the 1940 Act were as follows: Affiliated issuer Shares held at 08/31/17 Shares purchased Shares sold Shares held at 02/28/18 Value at 02/28/18 Income Net realized gain (loss) a Change in unrealized appreciation (depreciation) BlackRock Cash Funds: Institutional, SL Agency Shares 11,875,860 (9,431,718) b 2,444,142 $2,444,386 $45,492 c $ (6,305) $ BlackRock Cash Funds: Treasury, SL Agency Shares 488, ,755 b 685, ,018 12,201 $3,129,404 $57,693 $ (6,305) $ a b c Includes realized capital gain distributions from an affiliated fund, if any. Net of purchases and sales. Includes the Fund s portion of securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. S CHEDULES OF I NVESTMENTS 13

14 Schedule of Investments (Unaudited) (Continued) ishares MSCI UNITED KINGDOM ETF February 28, 2018 Futures Contracts (Note 5) Futures contracts outstanding as of February 28, 2018 were as follows: Description Number of contracts Expiration date Notional amount (000) Value/ unrealized appreciation (depreciation) Long Contracts FTSE 100 Index 218 Mar 2018 $21,705 $ (139,011) 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, see Note 1. The following table summarizes the value of the Fund s investments according to the fair value hierarchy as of February 28, The breakdown of the Fund s investments into major categories is disclosed in the Schedule of Investments above. Level 1 Level 2 Level 3 Total Investments Assets Common stocks $2,554,465,795 $ $ $2,554,465,795 Money market funds 3,129,404 3,129,404 Total $2,557,595,199 $ $ $2,557,595,199 Derivative financial instruments a Liabilities Futures contracts $ (139,011) $ $ $ (139,011) Total $ (139,011) $ $ $ (139,011) a Shown at the unrealized appreciation (depreciation) on the contracts. See notes to financial statements ishares S EMI-ANNUAL R EPORT TO S HAREHOLDERS

15 Schedule of Investments (Unaudited) ishares MSCI UNITED KINGDOM SMALL-CAP ETF February 28, 2018 Security Shares Value COMMON STOCKS 99.87% AEROSPACE & DEFENSE 1.19% Chemring Group PLC 18,569 $ 49,277 QinetiQ Group PLC 38, ,639 Senior PLC 27, ,022 Ultra Electronics Holdings PLC 5, , ,486 AIRLINES 0.22% Dart Group PLC 6,428 71,475 71,475 BANKS 2.46% Aldermore Group PLC a 17,237 73,862 BGEO Group PLC 2, ,592 CYBG PLC 59, ,137 Metro Bank PLC a 5, ,570 Virgin Money Holdings UK PLC 19,266 74, ,383 BEVERAGES 1.31% Britvic PLC 17, ,378 Fevertree Drinks PLC 6, ,678 Stock Spirits Group PLC 11,932 45, ,268 BIOTECHNOLOGY 1.06% Abcam PLC 12, ,164 Genus PLC 4, , ,610 BUILDING PRODUCTS 0.22% Polypipe Group PLC 13,233 71,182 71,182 CAPITAL MARKETS 7.36% Allied Minds PLC a 14,436 27,051 Ashmore Group PLC 26, ,513 Brewin Dolphin Holdings PLC 19,056 90,479 Burford Capital Ltd. 12, ,471 Close Brothers Group PLC 10, ,351 CMC Markets PLC b 7,808 16,503 IG Group Holdings PLC 24, ,318 Intermediate Capital Group PLC 19, ,011 Jupiter Fund Management PLC 29, ,094 Man Group PLC 110, ,741 NEX Group PLC 21, ,721 P2P Global Investments PLC/Fund 5,407 59,079 Rathbone Brothers PLC 3, ,635 Security Shares Value TP ICAP PLC 37,055 $ 274,479 2,361,446 CHEMICALS 2.26% Elementis PLC 31, ,233 Essentra PLC 17, ,895 Scapa Group PLC 9,197 60,852 Sirius Minerals PLC a,c 282, ,168 Synthomer PLC 18, ,145 Victrex PLC 5, , ,969 COMMERCIAL SERVICES & SUPPLIES 4.45% Aggreko PLC 17, ,013 Biffa PLC b 16,649 53,220 De La Rue PLC 6,807 57,681 HomeServe PLC 19, ,278 IWG PLC 45, ,311 Mitie Group PLC 24,202 52,454 Renewi PLC 50,600 63,096 Rentokil Initial PLC 122, ,602 Restore PLC 7,132 49,822 RPS Group PLC 14,962 46,694 Serco Group PLC a 73,956 92,729 1,426,900 COMMUNICATIONS EQUIPMENT 0.05% Telit Communications PLC 6,978 16,979 16,979 CONSTRUCTION & ENGINEERING 1.64% Balfour Beatty PLC 46, ,147 Costain Group PLC 6,983 42,575 Galliford Try PLC 5,578 70,554 John Laing Group PLC b 24,669 92,114 Keller Group PLC 4,808 59,887 Kier Group PLC 6,476 92, ,808 CONSTRUCTION MATERIALS 1.07% Forterra PLC b 13,347 52,504 Ibstock PLC b 27,080 97,459 Marshalls PLC 13,287 76,306 Rhi Magnesita NV a 1, ,087 Rhi Magnesita NV New a , ,403 CONSUMER FINANCE 0.71% Arrow Global Group PLC 11,109 53,726 International Personal Finance PLC 14,757 38,491 S CHEDULES OF I NVESTMENTS 15

16 Schedule of Investments (Unaudited) (Continued) ishares MSCI UNITED KINGDOM SMALL-CAP ETF February 28, 2018 Security Shares Value Provident Financial PLC c 9,958 $ 134, ,679 CONTAINERS & PACKAGING 2.42% DS Smith PLC 71, ,923 RPC Group PLC 27, , ,718 DISTRIBUTORS 0.95% Inchcape PLC 27, ,446 John Menzies PLC 4,999 44, ,010 DIVERSIFIED CONSUMER SERVICES 0.26% AA PLC 41,082 45,001 Dignity PLC 3,368 37,960 82,961 DIVERSIFIED FINANCIAL SERVICES 0.27% Plus500 Ltd. 5,319 87,726 87,726 DIVERSIFIED TELECOMMUNICATION SERVICES 0.96% Inmarsat PLC 30, ,159 Kcom Group PLC 32,696 46,041 TalkTalk Telecom Group PLC 46,001 65, ,231 ELECTRICAL EQUIPMENT 1.33% Dialight PLC a 1,664 13,252 Luceco PLC b 5,448 5,900 Melrose Industries PLC 129, , ,792 ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS 4.04% Electrocomponents PLC 29, ,660 Halma PLC 25, ,287 Laird PLC 32,614 52,082 Oxford Instruments PLC 3,610 37,455 Renishaw PLC 2, ,717 Smart Metering Systems PLC 6,689 65,713 Spectris PLC 7, ,358 1,294,272 ENERGY EQUIPMENT & SERVICES 0.58% Hunting PLC a 9,296 77,940 Petrofac Ltd. 17, , ,633 Security Shares Value EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) 6.66% Assura PLC 159,448 $ 126,984 Big Yellow Group PLC 10, ,759 Civitas Social Housing PLC 22,038 31,883 Derwent London PLC 7, ,306 Empiric Student Property PLC 40,160 46,149 Great Portland Estates PLC 21, ,789 Hansteen Holdings PLC 27,684 50,465 Intu Properties PLC 58, ,578 LondonMetric Property PLC 46, ,139 NewRiver REIT PLC 20,331 82,779 Primary Health Properties PLC 38,170 61,112 RDI REIT PLC 94,610 44,974 Safestore Holdings PLC 13,951 95,343 Schroder REIT Ltd. 35,292 30,538 Shaftesbury PLC 15, ,887 Standard Life Investment Property Income Trust Ltd. 24,596 31,483 Tritax Big Box REIT PLC 91, ,574 UNITE Group PLC (The) 17, ,256 Workspace Group PLC 8, ,956 2,135,954 FOOD & STAPLES RETAILING 1.31% Booker Group PLC 113, ,655 Conviviality PLC 10,960 43,265 Majestic Wine PLC c 3,620 20, ,670 FOOD PRODUCTS 1.45% Dairy Crest Group PLC 9,397 71,665 Greencore Group PLC c 47, ,767 Hotel Chocolat Group Ltd. 2,700 12,221 Premier Foods PLC a 45,194 24,379 Tate & Lyle PLC 31, , ,657 HEALTH CARE EQUIPMENT & SUPPLIES 0.18% Advanced Medical Solutions Group PLC 12,744 57,068 57,068 HEALTH CARE PROVIDERS & SERVICES 1.79% CVS Group PLC 4,456 65,449 NMC Health PLC 5, ,437 Spire Healthcare Group PLC b 18,704 59, ishares S EMI-ANNUAL R EPORT TO S HAREHOLDERS

17 Schedule of Investments (Unaudited) (Continued) ishares MSCI UNITED KINGDOM SMALL-CAP ETF February 28, 2018 Security Shares Value UDG Healthcare PLC 16,583 $ 191, ,125 HEALTH CARE TECHNOLOGY 0.11% EMIS Group PLC 3,596 36,170 36,170 HOTELS, RESTAURANTS & LEISURE 7.00% 888 Holdings PLC 23,973 94,337 Domino s Pizza Group PLC 32, ,343 EI Group PLC a 32,173 55,235 Greene King PLC 20, ,623 Greggs PLC 6, ,849 GVC Holdings PLC 19, ,912 J D Wetherspoon PLC 4,938 86,272 Jackpotjoy PLC a 3,444 38,247 Ladbrokes Coral Group PLC 102, ,205 Marston s PLC 42,144 60,275 Mitchells & Butlers PLC 14,050 47,352 Playtech PLC 20, ,081 Rank Group PLC 11,696 35,454 Restaurant Group PLC (The) 13,404 44,879 SSP Group PLC 31, ,674 Thomas Cook Group PLC 97, ,547 William Hill PLC 57, ,562 2,243,847 HOUSEHOLD DURABLES 3.13% Bellway PLC 8, ,787 Bovis Homes Group PLC 9, ,747 Countryside Properties PLC b 22,691 98,109 Crest Nicholson Holdings PLC 17, ,665 DFS Furniture PLC 14,281 36,245 McCarthy & Stone PLC b 32,254 60,884 Redrow PLC 14, ,599 Telford Homes PLC 4,610 25,090 Victoria PLC a 6,075 66,126 1,002,252 HOUSEHOLD PRODUCTS 0.23% PZ Cussons PLC 18,545 72,160 72,160 INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS 0.29% Drax Group PLC 27,086 92,779 92,779 INSURANCE 4.19% Beazley PLC 35, ,822 Security Shares Value esure Group PLC 19,492 $ 61,073 Hastings Group Holdings PLC b 19,695 84,830 Hiscox Ltd. 19, ,276 Just Group PLC 47,318 95,057 Lancashire Holdings Ltd. 12,654 97,638 Phoenix Group Holdings 24, ,294 Saga PLC 74, ,231 1,345,221 INTERNET & DIRECT MARKETING RETAIL 2.84% AO World PLC a,c 16,690 31,919 ASOS PLC a 3, ,616 boohoo.com PLC a 46, ,342 Hostelworld Group PLC b 6,477 35,742 N Brown Group PLC 10,549 27,689 Ocado Group PLC a 35, ,954 On the Beach Group PLC b 6,496 51, ,817 INTERNET SOFTWARE & SERVICES 3.35% Gocompare.Com Group PLC 19,857 31,190 iomart Group PLC 5,131 25,451 Just Eat PLC a 36, ,631 Moneysupermarket.com Group PLC 35, ,034 Rightmove PLC 6, ,949 ZPG PLC b 19,024 88,597 1,072,852 IT SERVICES 1.00% Equiniti Group PLC b 24,283 96,193 Kainos Group PLC 4,432 21,251 Keywords Studios PLC 3,682 79,244 NCC Group PLC 18,428 50,477 SafeCharge International Group Ltd. c 3,538 14,966 Softcat PLC 7,222 58, ,145 LEISURE PRODUCTS 0.14% Photo-Me International PLC 17,564 44,190 44,190 LIFE SCIENCES TOOLS & SERVICES 0.29% Clinigen Healthcare Ltd. a 7,401 94,225 94,225 MACHINERY 3.35% Bodycote PLC 12, ,408 Fenner PLC 12,289 80,903 Morgan Advanced Materials PLC 19,003 88,500 Rotork PLC 58, ,388 S CHEDULES OF I NVESTMENTS 17

18 Schedule of Investments (Unaudited) (Continued) ishares MSCI UNITED KINGDOM SMALL-CAP ETF February 28, 2018 Security Shares Value Spirax-Sarco Engineering PLC 4,922 $ 387,240 Vesuvius PLC 14, ,634 1,075,073 MEDIA 4.79% Ascential PLC 26, ,830 Cineworld Group PLC 64, ,420 Daily Mail & General Trust PLC Class A NVS 19, ,545 Entertainment One Ltd. 22,946 96,050 Informa PLC 55, ,328 ITE Group PLC 17,894 40,879 UBM PLC 26, ,973 1,537,025 METALS & MINING 2.80% Acacia Mining PLC 11,038 21,140 Centamin PLC 73, ,891 Central Asia Metals PLC 9,990 44,460 Evraz PLC 23, ,488 Ferrexpo PLC 19,610 84,491 Hill & Smith Holdings PLC 5,228 87,521 Hochschild Mining PLC 16,856 47,495 KAZ Minerals PLC a 16, ,804 Lonmin PLC a,c 17,003 14,970 Pan African Resources PLC 125,104 12,066 Petra Diamonds Ltd. a 36,010 30,539 SolGold PLC a,c 50,976 15,979 Vedanta Resources PLC 5,469 55, ,230 MULTI-UTILITIES 0.22% Telecom Plus PLC 4,183 72,044 72,044 MULTILINE RETAIL 1.11% B&M European Value Retail SA 56, ,724 Debenhams PLC c 79,135 30, ,537 OIL, GAS & CONSUMABLE FUELS 2.06% Amerisur Resources PLC a 66,713 14,983 Cairn Energy PLC a 39, ,069 EnQuest PLC ADR a 74,604 30,786 Faroe Petroleum PLC a 21,131 30,629 Hurricane Energy PLC a,c 97,608 42,472 Nostrum Oil & Gas PLC a 5,664 22,554 Ophir Energy PLC a 46,788 33,910 Premier Oil PLC a,c 34,642 34,725 Security Shares Value SOCO International PLC 13,535 $ 17,530 Sound Energy PLC a,c 47,441 29,480 Stobart Group Ltd. 21,027 69,098 Tullow Oil PLC a 92, , ,098 PHARMACEUTICALS 2.72% BTG PLC a 25, ,584 Dechra Pharmaceuticals PLC 6, ,219 Hikma Pharmaceuticals PLC 9, ,035 Indivior PLC a 48, ,240 Vectura Group PLC a 40,798 40, ,805 PROFESSIONAL SERVICES 1.32% Hays PLC 91, ,610 Pagegroup PLC 21, ,246 Staffline Group PLC c 1,274 17, ,971 REAL ESTATE MANAGEMENT & DEVELOPMENT 2.03% Capital & Counties Properties PLC 51, ,927 Countrywide PLC a 11,152 13,061 Grainger PLC 28, ,409 Helical PLC 6,839 32,510 Purplebricks Group PLC a,c 14,438 87,253 Savills PLC 9, ,636 St. Modwen Properties PLC 12,594 66,530 Watkin Jones PLC 11,834 33, ,915 ROAD & RAIL 1.38% FirstGroup PLC a 80,326 90,700 Go-Ahead Group PLC 2,878 60,711 National Express Group PLC 30, ,722 Northgate PLC 8,868 39,955 Redde PLC 20,182 46,217 Stagecoach Group PLC 28,606 56, ,432 SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 0.26% IQE PLC a,c 47,675 84,148 84,148 SOFTWARE 1.44% Alfa Financial Software Holdings PLC a,b 6,091 38,605 AVEVA Group PLC 4, ,796 Blue Prism Group PLC a,c 3,312 72,832 GB Group PLC 9,132 53, ishares S EMI-ANNUAL R EPORT TO S HAREHOLDERS

19 Schedule of Investments (Unaudited) (Continued) ishares MSCI UNITED KINGDOM SMALL-CAP ETF February 28, 2018 Security Shares Value Sophos Group PLC b 18,654 $ 128, ,810 SPECIALTY RETAIL 3.14% Card Factory PLC 20,727 56,403 Dixons Carphone PLC 65, ,961 Dunelm Group PLC 6,725 53,743 Halfords Group PLC 13,316 64,987 JD Sports Fashion PLC 29, ,304 Lookers PLC 21,222 25,849 Pendragon PLC 94,378 34,720 Pets at Home Group PLC 28,332 66,949 Sports Direct International PLC a 16,256 82,292 Superdry PLC 3,523 83,103 WH Smith PLC 7, ,715 1,006,026 TEXTILES, APPAREL & LUXURY GOODS 0.25% Ted Baker PLC 1,920 80,740 80,740 THRIFTS & MORTGAGE FINANCE 0.60% OneSavings Bank PLC 12,987 73,115 Paragon Banking Group PLC 17, , ,389 TRADING COMPANIES & DISTRIBUTORS 1.88% Diploma PLC 7, ,830 Grafton Group PLC 15, ,656 Howden Joinery Group PLC 41, ,867 SIG PLC 37,396 74, ,066 TRANSPORTATION INFRASTRUCTURE 1.02% BBA Aviation PLC 69, , ,016 WATER UTILITIES 0.73% Pennon Group PLC 27, , ,697 TOTAL COMMON STOCKS (Cost: $28,622,827) 32,030,085 Security Shares Value BlackRock Cash Funds: Treasury, SL Agency Shares 1.32% d,e 4,068 $ 4, ,429 TOTAL SHORT-TERM INVESTMENTS (Cost: $828,394) 828,429 TOTAL INVESTMENTS IN SECURITIES % (Cost: $29,451,221) 32,858,514 Other Assets, Less Liabilities (2.45)% (785,220) NET ASSETS % $32,073,294 ADR American Depositary Receipts NVS Non-Voting Shares a Non-income producing security. b Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. c All or a portion of this security is on loan. d Affiliate of the Fund. e Annualized 7-day yield as of period end. f All or a portion of this security was purchased with cash collateral received from loaned securities. SHORT-TERM INVESTMENTS 2.58% MONEY MARKET FUNDS 2.58% BlackRock Cash Funds: Institutional, SL Agency Shares 1.58% d,e,f 824, ,361 S CHEDULES OF I NVESTMENTS 19

20 Schedule of Investments (Unaudited) (Continued) ishares MSCI UNITED KINGDOM SMALL-CAP ETF February 28, 2018 Affiliates (Note 2) Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2018, for purposes of Section 2(a)(3) of the 1940 Act were as follows: Affiliated issuer Shares held at 08/31/17 Shares purchased Shares sold Shares held at 02/28/18 Value at 02/28/18 Income Net realized gain (loss) a Change in unrealized appreciation (depreciation) BlackRock Cash Funds: Institutional, SL Agency Shares 776,946 47,332 b 824,278 $824,361 $21,035 c $ (229) $ (74) BlackRock Cash Funds: Treasury, SL Agency Shares 7,050 (2,982) b 4,068 4, $828,429 $21,187 $ (229) $ (74) a b c Includes realized capital gain distributions from an affiliated fund, if any. Net of purchases and sales. Includes the Fund s portion of securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. 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, see Note 1. The following table summarizes the value of the Fund s investments according to the fair value hierarchy as of February 28, 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 $32,030,085 $ $ $32,030,085 Money market funds 828, ,429 Total $32,858,514 $ $ $32,858,514 See notes to financial statements ishares S EMI-ANNUAL R EPORT TO S HAREHOLDERS

21 Statements of Assets and Liabilities (Unaudited) ishares TRUST February 28, 2018 ishares Currency Hedged MSCI United Kingdom ETF ishares MSCI United Kingdom ETF ishares MSCI United Kingdom Small-Cap ETF ASSETS Investments in securities, at cost: Unaffiliated $ $2,909,221,780 $28,622,827 Affiliated (Note 2) 16,829,438 3,129, ,394 Total cost of investments in securities $16,829,438 $2,912,351,184 $29,451,221 Investments in securities, at fair value (including securities on loan a ) (Note 1): Unaffiliated $ $2,554,465,795 $32,030,085 Affiliated (Note 2) 17,275,462 3,129, ,429 Foreign currency, at value b 6,154,164 46,720 Foreign currency pledged to broker for futures contracts, at value b 1,066,831 Receivables: Investment securities sold 4,685,849 28,718 Dividends and interest 1,185 16,728,948 25,315 Unrealized appreciation on forward currency contracts (Note 6) 569,489 Tax reclaims 121,289 6,234 Total Assets 17,846,136 2,586,352,280 32,965,501 LIABILITIES Payables: Investment securities purchased 189,630 6,552,218 52,895 Collateral for securities on loan (Note 1) 3,600,000 2,450, ,583 Futures variation margin 139,011 Unrealized depreciation on forward currency contracts (Note 6) 202,440 Investment advisory fees (Note 2) 935,331 14,729 Total Liabilities 3,992,070 10,077, ,207 NET ASSETS $13,854,066 $2,576,274,984 $32,073,294 Net assets consist of: Paid-in capital $19,261,058 $3,156,438,284 $29,808,719 Undistributed (distributions in excess of) net investment income 3,636 11,871,493 (137,004) Accumulated net realized loss (6,223,700) (237,021,849) (1,004,206) Net unrealized appreciation (depreciation) 813,072 (355,012,944) 3,405,785 NET ASSETS $13,854,066 $2,576,274,984 $32,073,294 Shares outstanding c 600,000 74,000, ,000 Net asset value per share $ $ $ a Securities on loan with values of $3,467,000, $2,282,811 and $758,556, respectively. See Note 1. b Cost of foreign currency including currency pledged to broker for futures contracts: $, $7,237,986 and $47,334, respectively. c No par value, unlimited number of shares authorized. See notes to financial statements. F INANCIAL S TATEMENTS 21

22 Statements of Operations (Unaudited) ishares TRUST Six months ended February 28, 2018 ishares Currency Hedged MSCI United Kingdom ETF ishares MSCI United Kingdom ETF ishares MSCI United Kingdom Small-Cap ETF NET INVESTMENT INCOME Dividends unaffiliated a $ $ 40,313,205 $ 353,629 Dividends affiliated (Note 2) 337,693 12, Securities lending income affiliated net (Note 2) 3,477 45,492 21,035 Total investment income 341,170 40,370, ,816 EXPENSES Investment advisory fees (Note 2) 50,569 6,138,263 98,006 Proxy fees Total expenses 50,579 6,138,563 98,010 Less investment advisory fees waived (Note 2) (50,579) Net expenses 6,138,563 98,010 Net investment income 341,170 34,232, ,806 NET REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) from: Investments unaffiliated (20,962,868) (337,891) Investments affiliated (Note 2) 57,322 (6,305) (229) In-kind redemptions unaffiliated 61,734,544 1,044,876 In-kind redemptions affiliated (Note 2) 989,088 Futures contracts (730,028) Foreign currency transactions 1,770,610 13,811 Forward currency contracts (1,213,255) Net realized gain (loss) (166,845) 41,805, ,567 Net change in unrealized appreciation/depreciation on: Investments unaffiliated 50,466,178 1,789,568 Investments affiliated (Note 2) (265,354) (74) Forward currency contracts 122,593 Futures contracts (317,242) Translation of assets and liabilities in foreign currencies (1) 84,571 7 Net change in unrealized appreciation/depreciation (142,762) 50,233,507 1,789,501 Net realized and unrealized gain (loss) (309,607) 92,039,460 2,510,068 NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 31,563 $126,271,795 $2,786,874 a Net of foreign withholding tax of $, $737,414 and $6,496, respectively. See notes to financial statements ishares S EMI-ANNUAL R EPORT TO S HAREHOLDERS

23 Statements of Changes in Net Assets ishares TRUST Six months ended February 28, 2018 (Unaudited) ishares Currency Hedged MSCI United Kingdom ETF Year ended August 31, 2017 Six months ended February 28, 2018 (Unaudited) ishares MSCI United Kingdom ETF Year ended August 31, 2017 a INCREASE (DECREASE) IN NET ASSETS OPERATIONS: Net investment income $ 341,170 $ 1,417,778 $ 34,232,335 $ 96,085,353 Net realized gain (loss) (166,845) 6,864,061 41,805,953 1,083,618 Net change in unrealized appreciation/depreciation (142,762) 659,666 50,233, ,539,121 Net increase in net assets resulting from operations 31,563 8,941, ,271, ,708,092 DISTRIBUTIONS TO SHAREHOLDERS: From net investment income (337,534) (1,418,189) (46,875,181) (84,560,284) From net realized gain (8,272,441) Total distributions to shareholders (337,534) (9,690,630) (46,875,181) (84,560,284) CAPITAL SHARE TRANSACTIONS: Proceeds from shares sold 3,585,240 47,661, ,092,783 1,013,351,767 Cost of shares redeemed (8,498,148) (142,236,695) (468,960,276) (370,634,422) Net increase (decrease) in net assets from capital share transactions (4,912,908) (94,575,480) (267,867,493) 642,717,345 INCREASE (DECREASE) IN NET ASSETS (5,218,879) (95,324,605) (188,470,879) 835,865,153 NET ASSETS Beginning of period 19,072, ,397,550 2,764,745,863 1,928,880,710 End of period $13,854,066 $ 19,072,945 $2,576,274,984 $2,764,745,863 Undistributed net investment income included in net assets at end of period $ 3,636 $ $ 11,871,493 $ 24,514,339 SHARES ISSUED AND REDEEMED Shares sold 150,000 2,000,000 5,500,000 33,800,000 Shares redeemed (350,000) (5,800,000) (13,400,000) (13,400,000) Net increase (decrease) in shares outstanding (200,000) (3,800,000) (7,900,000) 20,400,000 a Share transactions reflect a one-for-two reverse stock split effective after the close of trading on November 4, See notes to financial statements. F INANCIAL S TATEMENTS 23

24 Statements of Changes in Net Assets (Continued) ishares TRUST ishares MSCI United Kingdom Small-Cap ETF Six months ended February 28, 2018 (Unaudited) Year ended August 31, 2017 INCREASE (DECREASE) IN NET ASSETS OPERATIONS: Net investment income $ 276,806 $ 722,116 Net realized gain (loss) 720,567 (386,729) Net change in unrealized appreciation/depreciation 1,789,501 3,809,000 Net increase in net assets resulting from operations 2,786,874 4,144,387 DISTRIBUTIONS TO SHAREHOLDERS: From net investment income (497,799) (787,287) Total distributions to shareholders (497,799) (787,287) CAPITAL SHARE TRANSACTIONS: Proceeds from shares sold 2,047,941 9,014,541 Cost of shares redeemed (4,198,702) (5,571,542) Net increase (decrease) in net assets fromcapital share transactions (2,150,761) 3,442,999 INCREASE IN NET ASSETS 138,314 6,800,099 NET ASSETS Beginning of period 31,934,980 25,134,881 End of period $32,073,294 $31,934,980 Undistributed (distributions in excess of) net investment income included in net assets at end of period $ (137,004) $ 83,989 SHARES ISSUED AND REDEEMED Shares sold 50, ,000 Shares redeemed (100,000) (150,000) Net increase (decrease) in shares outstanding (50,000) 100,000 See notes to financial statements ishares S EMI-ANNUAL R EPORT TO S HAREHOLDERS

25 Financial Highlights ishares TRUST (For a share outstanding throughout each period) ishares Currency Hedged MSCI United Kingdom ETF Six months ended Feb. 28, 2018 (Unaudited) Year ended Aug. 31, 2017 Year ended Aug. 31, 2016 Period from Jun. 29, 2015 a to Aug. 31, 2015 Net asset value, beginning of period $ $ $ $24.35 Income from investment operations: Net investment income (loss) b (0.00) c Net realized and unrealized gain (loss) d (0.80) (1.14) Total from investment operations (0.30) (1.14) Less distributions from: Net investment income (0.45) (0.84) (1.01) Net realized gain (3.06) (0.24) Total distributions (0.45) (3.90) (1.25) Net asset value, end of period $ $ $ $23.21 Total return (1.35)% e 13.48% 12.90% (4.64)% e Ratios/Supplemental data: Net assets, end of period (000s) $13,854 $19,073 $114,398 $2,321 Ratio of expenses to average net assets f,g 0.00% 0.00% 0.00% 0.01% Ratio of expenses to average net assets prior to waived fees f,g 0.62% 0.62% 0.62% 0.62% Ratio of net investment income (loss) to average net assets f 4.18% 1.99% 1.80% (0.01)% Portfolio turnover rate h,i 6% e 20% 4% 0% e a Commencement of operations. b Based on average shares outstanding throughout each period. c Rounds to less than $0.01. d The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund s underlying securities. e Not annualized. f Annualized for periods of less than one year. g The Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying fund in which the Fund is invested. This ratio does not include these indirect fees and expenses. h Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. i Portfolio turnover rates exclude the portfolio activity of the underlying fund in which the Fund is invested. See page xx for the portfolio turnover rates of the underlying fund. See notes to financial statements. F INANCIAL H IGHLIGHTS 25