2018 SEMI-ANNUAL REPORT (UNAUDITED)

Transcription

1 FEBRUARY 28, SEMI-ANNUAL REPORT (UNAUDITED) i Trust i Edge MSCI Multifactor Consumer Discretionary ETF CNDF Cboe BZX i Edge MSCI Multifactor Consumer Staples ETF CNSF Cboe BZX i Edge MSCI Multifactor Energy ETF ERGF Cboe BZX i Edge MSCI Multifactor Financials ETF FNCF Cboe BZX i Edge MSCI Multifactor Healthcare ETF HCRF Cboe BZX i Edge MSCI Multifactor Industrials ETF INDF Cboe BZX i Edge MSCI Multifactor Materials ETF MATF Cboe BZX i Edge MSCI Multifactor Technology ETF TCHF Cboe BZX i Edge MSCI Multifactor Utilities ETF UTLF Cboe BZX

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3 Table of Contents Fund Performance Overviews... 5 About Fund Performance Shareholder Expenses Schedules of Investments i Edge MSCI Multifactor Consumer Discretionary ETF i Edge MSCI Multifactor Consumer Staples ETF i Edge MSCI Multifactor Energy ETF i Edge MSCI Multifactor Financials ETF i Edge MSCI Multifactor Healthcare ETF i Edge MSCI Multifactor Industrials ETF i Edge MSCI Multifactor Materials ETF i Edge MSCI Multifactor Technology ETF i Edge MSCI Multifactor Utilities ETF Financial Statements Financial Highlights Notes to Financial Statements Supplemental Information General Information... 63

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5 Fund Performance Overview ishares EDGE MSCI MULTIFACTOR CONSUMER DISCRETIONARY ETF Performance as of February 28, 2018 The i Edge MSCI Multifactor Consumer Discretionary ETF (the Fund ) seeks to track the investment results of an index composed of U.S. large- and mid-capitalization stocks in the Consumer Discretionary sector that have favorable exposure to target style factors subject to constraints, as represented by the MSCI USA Consumer Discretionary Diversified Multiple-Factor Capped 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 17.83%, net of fees, while the total return for the Index was 17.79%. Average Annual Total Returns Cumulative Total Returns NAV MARKET INDEX NAV MARKET INDEX 1 Year 19.26% 19.38% 19.43% 19.26% 19.38% 19.43% Since Inception 16.03% 16.07% 16.36% 30.85% 30.93% 31.47% The inception date of the Fund was 5/10/16. The first day of secondary market trading was 5/12/16. 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 (9/1/17) Actual Ending (2/28/18) Expenses Paid During Period a Shareholder Expenses Beginning (9/1/17) Hypothetical 5% Return Ending (2/28/18) Expenses Paid During Period a Annualized Expense Ratio $ 1, $ 1, $ 1.89 $ 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. ALLOCATION BY SECTOR As of 2/28/18 Percentage of Sector Total Investments* Internet & Direct Marketing Retail 19.39% Hotels, Restaurants & Leisure Media Specialty Retail Household Durables Auto Components 8.77 Multiline Retail 7.92 Textiles, Apparel & Luxury Goods 7.40 Leisure Products 1.84 Distributors 0.85 Automobiles 0.03 TOTAL % TEN LARGEST FUND HOLDINGS As of 2/28/18 Percentage of Security Total Investments* Amazon.com Inc % Home Depot Inc. (The) 4.87 Comcast Corp. Class A 3.57 Walt Disney Co. (The) 3.22 Kohl s Corp Best Buy Co. Inc Dollar General Corp Carnival Corp Royal Caribbean Cruises Ltd Autoliv Inc TOTAL 45.39% * Excludes money market funds. F UND P ERFORMANCE O VERVIEWS 5

6 Fund Performance Overview ishares EDGE MSCI MULTIFACTOR CONSUMER STAPLES ETF Performance as of February 28, 2018 The i Edge MSCI Multifactor Consumer Staples ETF (the Fund ) seeks to track the investment results of an index composed of U.S. large- and mid-capitalization stocks in the Consumer Staples sector that have favorable exposure to target style factors subject to constraints, as represented by the MSCI USA Consumer Staples Diversified Multiple-Factor Capped 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 1.47%, net of fees, while the total return for the Index was 1.64%. Average Annual Total Returns Cumulative Total Returns NAV MARKET INDEX NAV MARKET INDEX 1 Year 0.06% 0.10% 0.42% 0.06% 0.10% 0.42% Since Inception 1.46% 1.51% 1.85% 2.66% 2.74% 3.36% The inception date of the Fund was 5/10/16. The first day of secondary market trading was 5/12/16. 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 (9/1/17) Actual Ending (2/28/18) Expenses Paid During Period a Shareholder Expenses Beginning (9/1/17) Hypothetical 5% Return Ending (2/28/18) Expenses Paid During Period a Annualized Expense Ratio $ 1, $ 1, $ 1.75 $ 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. ALLOCATION BY SECTOR As of 2/28/18 Percentage of Sector Total Investments* Food Products 24.51% Household Products Food & Staples Retailing Beverages Tobacco Personal Products 3.95 TOTAL % TEN LARGEST FUND HOLDINGS As of 2/28/18 Percentage of Security Total Investments* Walmart Inc. 9.26% Procter & Gamble Co. (The) 9.21 Coca-Cola Co. (The) 7.72 Philip Morris International Inc PepsiCo Inc CVS Health Corp Altria Group Inc Kimberly-Clark Corp Estee Lauder Companies Inc. (The) Class A 3.94 Dr Pepper Snapple Group Inc TOTAL 61.98% * Excludes money market funds ishares S EMI-ANNUAL R EPORT TO S HAREHOLDERS

7 Fund Performance Overview ishares EDGE MSCI MULTIFACTOR ENERGY ETF Performance as of February 28, 2018 The i Edge MSCI Multifactor Energy ETF (the Fund ) seeks to track the investment results of an index composed of U.S. large- and mid-capitalization stocks in the Energy sector that have favorable exposure to target style factors subject to constraints, as represented by the MSCI USA Energy Diversified Multiple-Factor Capped 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 9.93%, net of fees, while the total return for the Index was 10.54%. Average Annual Total Returns Cumulative Total Returns NAV MARKET INDEX NAV MARKET INDEX 1 Year 0.75% 0.79% 1.44% 0.75% 0.79% 1.44% Since Inception 4.46% 4.48% 5.12% 8.21% 8.25% 9.44% The inception date of the Fund was 5/10/16. The first day of secondary market trading was 5/12/16. 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 (9/1/17) Actual Ending (2/28/18) Expenses Paid During Period a Shareholder Expenses Beginning (9/1/17) Hypothetical 5% Return Ending (2/28/18) Expenses Paid During Period a Annualized Expense Ratio $ 1, $ 1, $ 1.82 $ 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. ALLOCATION BY SECTOR As of 2/28/18 Percentage of Sector Total Investments* Oil, Gas & Consumable Fuels 85.81% Energy Equipment & Services TOTAL % TEN LARGEST FUND HOLDINGS As of 2/28/18 Percentage of Security Total Investments* Exxon Mobil Corp % Chevron Corp Valero Energy Corp Phillips Schlumberger Ltd Marathon Petroleum Corp Kinder Morgan Inc./DE 3.91 Concho Resources Inc TechnipFMC PLC 3.18 Diamondback Energy Inc TOTAL 74.14% * Excludes money market funds. F UND P ERFORMANCE O VERVIEWS 7

8 Fund Performance Overview ishares EDGE MSCI MULTIFACTOR FINANCIALS ETF Performance as of February 28, 2018 The i Edge MSCI Multifactor Financials ETF (the Fund ) seeks to track the investment results of an index composed of U.S. large- and mid-capitalization stocks in the Financials sector that have favorable exposure to target style factors subject to constraints, as represented by the MSCI USA Financials Diversified Multiple-Factor Capped 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 15.17%, net of fees, while the total return for the Index was 15.30%. Average Annual Total Returns Cumulative Total Returns NAV MARKET INDEX NAV MARKET INDEX 1 Year 16.00% 16.03% 16.18% 16.00% 16.03% 16.18% Since Inception 24.22% 24.25% 24.55% 48.01% 48.09% 48.67% The inception date of the Fund was 5/10/16. The first day of secondary market trading was 5/12/16. 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 (9/1/17) Actual Ending (2/28/18) Expenses Paid During Period a Shareholder Expenses Beginning (9/1/17) Hypothetical 5% Return Ending (2/28/18) Expenses Paid During Period a Annualized Expense Ratio $ 1, $ 1, $ 1.87 $ 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. ALLOCATION BY SECTOR As of 2/28/18 Percentage of Sector Total Investments* Banks 40.50% Insurance Capital Markets Diversified Financial Services 7.86 Mortgage Real Estate Investment 3.86 Consumer Finance 0.16 TOTAL % TEN LARGEST FUND HOLDINGS As of 2/28/18 Percentage of Security Total Investments* JPMorgan Chase & Co. 9.30% Bank of America Corp Wells Fargo & Co Berkshire Hathaway Inc. Class B 5.31 Citigroup Inc Marsh & McLennan Companies Inc Aflac Inc Regions Financial Corp T Rowe Price Group Inc Comerica Inc TOTAL 45.90% * Excludes money market funds ishares S EMI-ANNUAL R EPORT TO S HAREHOLDERS

9 Fund Performance Overview ishares EDGE MSCI MULTIFACTOR HEALTHCARE ETF Performance as of February 28, 2018 The i Edge MSCI Multifactor Healthcare ETF (the Fund ) seeks to track the investment results of an index composed of U.S. large- and mid-capitalization stocks in the Healthcare sector that have favorable exposure to target style factors subject to constraints, as represented by the MSCI USA Health Care Diversified Multiple-Factor Capped 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 7.56%, net of fees, while the total return for the Index was 7.84%. Average Annual Total Returns Cumulative Total Returns NAV MARKET INDEX NAV MARKET INDEX 1 Year 18.64% 18.70% 19.21% 18.64% 18.70% 19.21% Since Inception 15.71% 15.78% 16.22% 30.19% 30.34% 31.20% The inception date of the Fund was 5/10/16. The first day of secondary market trading was 5/12/16. 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 (9/1/17) Actual Ending (2/28/18) Expenses Paid During Period a Shareholder Expenses Beginning (9/1/17) Hypothetical 5% Return Ending (2/28/18) Expenses Paid During Period a Annualized Expense Ratio $ 1, $ 1, $ 1.80 $ 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. ALLOCATION BY SECTOR As of 2/28/18 Percentage of Sector Total Investments* Health Care Providers & Services 32.84% Health Care Equipment & Supplies Pharmaceuticals Biotechnology Life Sciences Tools & Services 7.77 Health Care Technology 4.74 TOTAL % TEN LARGEST FUND HOLDINGS As of 2/28/18 Percentage of Security Total Investments* Johnson & Johnson 10.27% Pfizer Inc UnitedHealth Group Inc Anthem Inc Aetna Inc Intuitive Surgical Inc Humana Inc Cigna Corp Edwards Lifesciences Corp AbbVie Inc TOTAL 43.83% * Excludes money market funds. F UND P ERFORMANCE O VERVIEWS 9

10 Fund Performance Overview ishares EDGE MSCI MULTIFACTOR INDUSTRIALS ETF Performance as of February 28, 2018 The i Edge MSCI Multifactor Industrials ETF (the Fund ) seeks to track the investment results of an index composed of U.S. large- and mid-capitalization stocks in the Industrials sector that have favorable exposure to target style factors subject to constraints, as represented by the MSCI USA Industrials Diversified Multiple-Factor Capped 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 11.79%, net of fees, while the total return for the Index was 11.97%. Average Annual Total Returns Cumulative Total Returns NAV MARKET INDEX NAV MARKET INDEX 1 Year 13.93% 13.92% 14.33% 13.93% 13.92% 14.33% Since Inception 17.62% 17.64% 18.12% 34.11% 34.15% 35.09% The inception date of the Fund was 5/10/16. The first day of secondary market trading was 5/12/16. 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 (9/1/17) Actual Ending (2/28/18) Expenses Paid During Period a Shareholder Expenses Beginning (9/1/17) Hypothetical 5% Return Ending (2/28/18) Expenses Paid During Period a Annualized Expense Ratio $ 1, $ 1, $ 1.84 $ 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. ALLOCATION BY SECTOR As of 2/28/18 Percentage of Sector Total Investments* Aerospace & Defense 23.24% Road & Rail Machinery Industrial Conglomerates 9.85 Commercial Services & Supplies 6.86 Airlines 6.53 Building Products 5.22 Air Freight & Logistics 4.37 Professional Services 4.34 Electrical Equipment 3.71 Trading Companies & Distributors 2.79 Construction & Engineering 2.24 TEN LARGEST FUND HOLDINGS As of 2/28/18 Percentage of Security Total Investments* Boeing Co. (The) 5.95% Northrop Grumman Corp M Co Norfolk Southern Corp Eaton Corp. PLC 3.35 General Electric Co Cummins Inc Stanley Black & Decker Inc United Rentals Inc Textron Inc TOTAL 36.34% TOTAL % * Excludes money market funds ishares S EMI-ANNUAL R EPORT TO S HAREHOLDERS

11 Fund Performance Overview ishares EDGE MSCI MULTIFACTOR MATERIALS ETF Performance as of February 28, 2018 The i Edge MSCI Multifactor Materials ETF (the Fund ) seeks to track the investment results of an index composed of U.S. large- and mid-capitalization stocks in the Materials sector that have favorable exposure to target style factors subject to constraints, as represented by the MSCI USA Materials Diversified Multiple-Factor Capped 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 10.45%, net of fees, while the total return for the Index was 10.48%. Average Annual Total Returns Cumulative Total Returns NAV MARKET INDEX NAV MARKET INDEX 1 Year 17.16% 17.19% 17.45% 17.16% 17.19% 17.45% Since Inception 19.69% 19.73% 20.00% 38.41% 38.49% 39.01% The inception date of the Fund was 5/10/16. The first day of secondary market trading was 5/12/16. 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 (9/1/17) Actual Ending (2/28/18) Expenses Paid During Period a Shareholder Expenses Beginning (9/1/17) Hypothetical 5% Return Ending (2/28/18) Expenses Paid During Period a Annualized Expense Ratio $ 1, $ 1, $ 1.83 $ 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. ALLOCATION BY SECTOR As of 2/28/18 Percentage of Sector Total Investments* Chemicals 67.14% Containers & Packaging Metals & Mining Construction Materials 0.31 TOTAL % TEN LARGEST FUND HOLDINGS As of 2/28/18 Percentage of Security Total Investments* DowDuPont Inc % LyondellBasell Industries NV Class A 7.07 Sherwin-Williams Co. (The) 6.70 Monsanto Co Nucor Corp Newmont Mining Corp International Paper Co WestRock Co Eastman Chemical Co Praxair Inc TOTAL 67.42% * Excludes money market funds. F UND P ERFORMANCE O VERVIEWS 11

12 Fund Performance Overview ishares EDGE MSCI MULTIFACTOR TECHNOLOGY ETF Performance as of February 28, 2018 The i Edge MSCI Multifactor Technology ETF (the Fund ) seeks to track the investment results of an index composed of U.S. large- and mid-capitalization stocks in the Technology sector that have favorable exposure to target style factors subject to constraints, as represented by the MSCI USA Information Technology Diversified Multiple-Factor Capped 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 16.84%, net of fees, while the total return for the Index was 17.05%. Average Annual Total Returns Cumulative Total Returns NAV MARKET INDEX NAV MARKET INDEX 1 Year 31.57% 31.61% 32.09% 31.57% 31.61% 32.09% Since Inception 36.14% 36.19% 36.72% 74.69% 74.80% 75.94% The inception date of the Fund was 5/10/16. The first day of secondary market trading was 5/12/16. 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 (9/1/17) Actual Ending (2/28/18) Expenses Paid During Period a Shareholder Expenses Beginning (9/1/17) Hypothetical 5% Return Ending (2/28/18) Expenses Paid During Period a Annualized Expense Ratio $ 1, $ 1, $ 1.88 $ 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. ALLOCATION BY SECTOR As of 2/28/18 Percentage of Sector Total Investments* Technology Hardware, Storage & Peripherals 21.92% Software Electronic Equipment, Instruments & Components IT Services Internet Software & Services Semiconductors & Semiconductor Equipment Communications Equipment 4.58 TOTAL % TEN LARGEST FUND HOLDINGS As of 2/28/18 Percentage of Security Total Investments* Apple Inc % Microsoft Corp Facebook Inc. Class A 5.11 Alphabet Inc. Class C 3.67 Alphabet Inc. Class A 3.43 Hewlett Packard Enterprise Co Applied Materials Inc Micron Technology Inc Intuit Inc TE Connectivity Ltd TOTAL 48.93% * Excludes money market funds ishares S EMI-ANNUAL R EPORT TO S HAREHOLDERS

13 Fund Performance Overview ishares EDGE MSCI MULTIFACTOR UTILITIES ETF Performance as of February 28, 2018 The i Edge MSCI Multifactor Utilities ETF (the Fund ) seeks to track the investment results of an index composed of U.S. large- and mid-capitalization stocks in the Utilities sector that have favorable exposure to target style factors subject to constraints, as represented by the MSCI USA Utilities Diversified Multiple-Factor Capped 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 -9.16%, net of fees, while the total return for the Index was -9.24%. Average Annual Total Returns Cumulative Total Returns NAV MARKET INDEX NAV MARKET INDEX 1 Year (3.95)% (3.98)% (3.85)% (3.95)% (3.98)% (3.85)% Since Inception 2.03% 2.07% 2.29% 3.70% 3.78% 4.17% The inception date of the Fund was 5/10/16. The first day of secondary market trading was 5/12/16. 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 (9/1/17) Actual Ending (2/28/18) Expenses Paid During Period a Shareholder Expenses Beginning (9/1/17) Hypothetical 5% Return Ending (2/28/18) Expenses Paid During Period a Annualized Expense Ratio $ 1, $ $ 1.66 $ 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. ALLOCATION BY SECTOR As of 2/28/18 Percentage of Sector Total Investments* Electric Utilities 61.81% Multi-Utilities Gas Utilities 6.64 Independent Power and Renewable Electricity Producers 3.45 Water Utilities 0.17 TOTAL % TEN LARGEST FUND HOLDINGS As of 2/28/18 Percentage of Security Total Investments* NextEra Energy Inc. 8.90% Exelon Corp Duke Energy Corp Consolidated Edison Inc Dominion Energy Inc Eversource Energy 4.84 Southern Co. (The) 4.80 Xcel Energy Inc PG&E Corp Ameren Corp TOTAL 56.61% * Excludes money market funds. F UND P ERFORMANCE O VERVIEWS 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. 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

15 Schedule of Investments (Unaudited) ishares EDGE MSCI MULTIFACTOR CONSUMER DISCRETIONARY ETF February 28, 2018 Security Value COMMON STOCKS 99.76% AUTO COMPONENTS 8.75% Autoliv Inc. 569 $ 81,616 BorgWarner Inc. 1,344 65,964 Goodyear Tire & Rubber Co. (The) 2,051 59,356 Lear Corp , ,310 AUTOMOBILES 0.03% General Motors Co DISTRIBUTORS 0.85% Genuine Parts Co ,368 27,368 HOTELS, RESTAURANTS & LEISURE 14.91% Carnival Corp. 1,249 83,570 Darden Restaurants Inc ,993 McDonald s Corp ,769 Royal Caribbean Cruises Ltd ,176 Starbucks Corp ,896 Vail Resorts Inc ,173 Wyndham Worldwide Corp , ,139 HOUSEHOLD DURABLES 12.10% DR Horton Inc. 1,589 66,579 Garmin Ltd. 1,084 64,216 Leggett & Platt Inc. 1,351 58,714 Mohawk Industries Inc. a ,687 NVR Inc. a 22 62,550 Toll Brothers Inc. 1,415 62,019 Whirlpool Corp. 60 9, ,511 INTERNET & DIRECT MARKETING RETAIL 19.35% Amazon.com Inc. a ,044 Booking Holdings Inc. a 16 32,545 Netflix Inc. a,b , ,508 LEISURE PRODUCTS 1.83% Hasbro Inc ,158 59,158 MEDIA 13.77% Charter Communications Inc. Class A a 23 7,864 Comcast Corp. Class A 3, ,858 Security Value Liberty Media Corp.-Liberty SiriusXM Class C a 1,531 $ 63,935 News Corp. Class A 3,911 63,084 Scripps Networks Interactive Inc. Class A ,045 Time Warner Inc ,105 Walt Disney Co. (The) 1, , ,567 MULTILINE RETAIL 7.90% Dollar General Corp ,806 Kohl s Corp. 1,497 98,937 Nordstrom Inc. 1,274 65, ,112 SPECIALTY RETAIL 12.89% Best Buy Co. Inc. 1,328 96,200 Gap Inc. (The) 2,213 69,887 Home Depot Inc. (The) ,934 Lowe s Companies Inc ,647 Ross Stores Inc. 1,044 81, ,194 TEXTILES, APPAREL & LUXURY GOODS 7.38% Lululemon Athletica Inc. a ,030 Michael Kors Holdings Ltd. a 1,205 75,831 NIKE Inc. Class B ,058 PVH Corp ,871 Ralph Lauren Corp , ,403 TOTAL COMMON STOCKS (Cost: $2,640,515) 3,220,215 SHORT-TERM INVESTMENTS 1.45% MONEY MARKET FUNDS 1.45% BlackRock Cash Funds: Institutional, SL Agency 1.58% c,d,e 40,616 40,621 BlackRock Cash Funds: Treasury, SL Agency 1.32% c,d 6,074 6,074 46,695 TOTAL SHORT-TERM INVESTMENTS (Cost: $46,695) 46,695 S CHEDULES OF I NVESTMENTS 15

16 Schedule of Investments (Unaudited) (Continued) ishares EDGE MSCI MULTIFACTOR CONSUMER DISCRETIONARY ETF February 28, 2018 Value TOTAL INVESTMENTS IN SECURITIES % (Cost: $2,687,210) $3,266,910 Other Assets, Less Liabilities (1.21)% (39,127) NET ASSETS % $3,227,783 a Non-income producing security. b All or a portion of this security is on loan. c Affiliate of the Fund. d Annualized 7-day yield as of period end. e All or a portion of this security was purchased with cash collateral received from loaned securities. Affiliates (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 held at 08/31/17 purchased sold 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 15,243 25,373 b 40,616 $ 40,621 $ 8 c $ $ BlackRock Cash Funds: Treasury, SL Agency 1,374 4,700 b 6,074 6, $ 46,695 $ 30 $ $ 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 $3,220,215 $ $ $3,220,215 Money market funds 46,695 46,695 Total $3,266,910 $ $ $3,266,910 See notes to financial statements ishares S EMI-ANNUAL R EPORT TO S HAREHOLDERS

17 Schedule of Investments (Unaudited) ishares EDGE MSCI MULTIFACTOR CONSUMER STAPLES ETF February 28, 2018 Security Value COMMON STOCKS 99.83% BEVERAGES 19.67% Brown-Forman Corp. Class B 519 $ 36,221 Coca-Cola Co. (The) 4, ,323 Constellation Brands Inc. Class A Dr Pepper Snapple Group Inc ,371 PepsiCo Inc. 1, , ,786 FOOD & STAPLES RETAILING 20.01% Costco Wholesale Corp ,179 CVS Health Corp. 2, ,520 Kroger Co. (The) ,482 Walgreens Boots Alliance Inc ,907 Walmart Inc. 2, , ,224 FOOD PRODUCTS 24.47% Archer-Daniels-Midland Co. 2,064 85,697 Bunge Ltd ,016 Campbell Soup Co. 1,264 54,415 Hormel Foods Corp. 1,915 62,161 Ingredion Inc ,923 JM Smucker Co. (The) ,654 Kraft Heinz Co. (The) ,745 McCormick & Co. Inc./MD NVS ,543 Mondelez International Inc. Class A ,413 Tyson Foods Inc. Class A 1,042 77, ,071 HOUSEHOLD PRODUCTS 20.25% Church & Dwight Co. Inc. 1,476 72,605 Clorox Co. (The) ,252 Colgate-Palmolive Co ,968 Security Value Kimberly-Clark Corp. 925 $ 102,601 Procter & Gamble Co. (The) 2, , ,196 PERSONAL PRODUCTS 3.94% Estee Lauder Companies Inc. (The) Class A ,846 98,846 TOBACCO 11.49% Altria Group Inc. 1, ,968 Philip Morris International Inc. 1, , ,412 TOTAL COMMON STOCKS (Cost: $2,556,352) 2,505,535 SHORT-TERM INVESTMENTS 0.08% MONEY MARKET FUNDS 0.08% BlackRock Cash Funds: Treasury, SL Agency 1.32% a,b 1,899 1,899 1,899 TOTAL SHORT-TERM INVESTMENTS (Cost: $1,899) 1,899 TOTAL INVESTMENTS IN SECURITIES 99.91% (Cost: $2,558,251) 2,507,434 Other Assets, Less Liabilities 0.09% 2,367 NET ASSETS % $2,509,801 NVS Non-Voting a Affiliate of the Fund. b Annualized 7-day yield as of period end. 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 held at 08/31/17 purchased sold held at 02/28/18 Value at 02/28/18 Income Change in unrealized Net realized appreciation gain (loss) a (depreciation) BlackRock Cash Funds: Treasury, SL Agency 1, b 1,899 $ 1,899 $ 24 $ $ a b Includes realized capital gain distributions from an affiliated fund, if any. Net of purchases and sales. S CHEDULES OF I NVESTMENTS 17

18 Schedule of Investments (Unaudited) (Continued) ishares EDGE MSCI MULTIFACTOR CONSUMER STAPLES ETF February 28, 2018 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 $2,505,535 $ $ $2,505,535 Money market funds 1,899 1,899 Total $2,507,434 $ $ $2,507,434 See notes to financial statements ishares S EMI-ANNUAL R EPORT TO S HAREHOLDERS

19 Schedule of Investments (Unaudited) ishares EDGE MSCI MULTIFACTOR ENERGY ETF February 28, 2018 Security Value COMMON STOCKS 99.26% ENERGY EQUIPMENT & SERVICES 14.09% Baker Hughes a GE Co. 2,507 $ 66,184 Halliburton Co ,471 Helmerich & Payne Inc. 1,152 74,361 Schlumberger Ltd. 1, ,025 TechnipFMC PLC 2,835 81, ,746 OIL, GAS & CONSUMABLE FUELS 85.17% Anadarko Petroleum Corp Andeavor ,531 Antero Resources Corp. a 3,206 60,305 Cabot Oil & Gas Corp. 2,701 65,256 Chevron Corp. 4, ,797 Cimarex Energy Co ,402 Concho Resources Inc. a,b ,282 ConocoPhillips 1,326 72,015 Diamondback Energy Inc. a ,515 EOG Resources Inc ,866 Exxon Mobil Corp. 7, ,624 HollyFrontier Corp. 1,507 64,545 Kinder Morgan Inc./DE 6, ,618 Marathon Petroleum Corp. 1, ,166 Occidental Petroleum Corp ,166 Phillips 66 1, ,422 Security Value Valero Energy Corp. 1,496 $ 135,268 2,205,348 TOTAL COMMON STOCKS (Cost: $2,534,758) 2,570,094 SHORT-TERM INVESTMENTS 0.31% MONEY MARKET FUNDS 0.31% BlackRock Cash Funds: Institutional, SL Agency 1.58% c,d,e 4,833 4,833 BlackRock Cash Funds: Treasury, SL Agency 1.32% c,d 3,220 3,220 8,053 TOTAL SHORT-TERM INVESTMENTS (Cost: $8,053) 8,053 TOTAL INVESTMENTS IN SECURITIES 99.57% (Cost: $2,542,811) 2,578,147 Other Assets, Less Liabilities 0.43% 11,098 NET ASSETS % $2,589,245 a Non-income producing security. b All or a portion of this security is on loan. c Affiliate of the Fund. d Annualized 7-day yield as of period end. e All or a portion of this security was purchased with cash collateral received from loaned securities. Affiliates (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 held at 08/31/17 purchased sold held at 02/28/18 Value at 02/28/18 Income Change in unrealized Net realized appreciation gain (loss) a (depreciation) BlackRock Cash Funds: Institutional, SL Agency 29,404 (24,571) b 4,833 $ 4,833 $ 45 c $ (11) $ BlackRock Cash Funds: Treasury, SL Agency 3,274 (54) b 3,220 3, $ 8,053 $ 61 $ (11) $ 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 19

20 Schedule of Investments (Unaudited) (Continued) ishares EDGE MSCI MULTIFACTOR ENERGY ETF February 28, 2018 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 $2,570,094 $ $ $2,570,094 Money market funds 8,053 8,053 Total $2,578,147 $ $ $2,578,147 See notes to financial statements ishares S EMI-ANNUAL R EPORT TO S HAREHOLDERS

21 Schedule of Investments (Unaudited) ishares EDGE MSCI MULTIFACTOR FINANCIALS ETF February 28, 2018 Security Value COMMON STOCKS 99.89% BANKS 40.45% Bank of America Corp. 18,976 $ 609,130 Citigroup Inc. 4, ,649 Citizens Financial Group Inc. 5, ,241 Comerica Inc. 2, ,883 East West Bancorp. Inc. 3, ,611 JPMorgan Chase & Co. 7, ,788 KeyCorp 2,579 54,494 Regions Financial Corp. 13, ,121 U.S. Bancorp. 1,061 57,676 Wells Fargo & Co. 8, ,665 Zions BanCorp. 4, ,597 3,605,855 CAPITAL MARKETS 14.99% Affiliated Managers Group Inc. 1, ,639 Ameriprise Financial Inc. 1, ,178 Eaton Vance Corp. NVS 2, ,467 Goldman Sachs Group Inc. (The) ,051 Morgan Stanley 126 7,059 Raymond James Financial Inc. 2, ,736 SEI Investments Co. 2, ,837 T Rowe Price Group Inc. 2, ,420 1,336,387 CONSUMER FINANCE 0.16% American Express Co ,529 14,529 DIVERSIFIED FINANCIAL SERVICES 7.85% Berkshire Hathaway Inc. Class B a 2, ,244 Voya Financial Inc. 4, , ,824 INSURANCE 32.58% Aflac Inc. 2, ,285 Allstate Corp. (The) 1, ,729 American Financial Group Inc./OH 1, ,890 Arch Capital Group Ltd. a 1, ,506 Athene Holding Ltd. Class A a 2, ,772 Axis Capital Holdings Ltd. 2, ,032 Security Value Chubb Ltd. 74 $ 10,502 Everest Re Group Ltd ,606 FNF Group 4, ,775 Lincoln National Corp. 2, ,124 Marsh & McLennan Companies Inc. 3, ,872 Principal Financial Group Inc. 3, ,082 Reinsurance Group of America Inc. 1, ,698 RenaissanceRe Holdings Ltd. 1, ,770 Torchmark Corp. 2, ,875 Unum Group 3, ,469 XL Group Ltd. 3, ,142 2,904,129 MORTGAGE REAL ESTATE INVESTMENT 3.86% AGNC Investment Corp. 9, ,264 Annaly Capital Management Inc. 17, , ,575 TOTAL COMMON STOCKS (Cost: $8,247,055) 8,904,299 SHORT-TERM INVESTMENTS 0.05% MONEY MARKET FUNDS 0.05% BlackRock Cash Funds: Treasury, SL Agency 1.32% b,c 4,834 4,834 4,834 TOTAL SHORT-TERM INVESTMENTS (Cost: $4,834) 4,834 TOTAL INVESTMENTS IN SECURITIES 99.94% (Cost: $8,251,889) 8,909,133 Other Assets, Less Liabilities 0.06% 5,441 NET ASSETS % $8,914,574 NVS Non-Voting a Non-income producing security. b Affiliate of the Fund. c Annualized 7-day yield as of period end. S CHEDULES OF I NVESTMENTS 21

22 Schedule of Investments (Unaudited) (Continued) ishares EDGE MSCI MULTIFACTOR FINANCIALS 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 held at 08/31/17 purchased sold 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 b $ $ 17 c $ 22 $ BlackRock Cash Funds: Treasury, SL Agency 8,924 (4,090) b 4,834 $ 4,834 $ 84 $ $ $ 4,834 $ 101 $ 22 $ 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 $8,904,299 $ $ $8,904,299 Money market funds 4,834 4,834 Total $8,909,133 $ $ $8,909,133 See notes to financial statements ishares S EMI-ANNUAL R EPORT TO S HAREHOLDERS

23 Schedule of Investments (Unaudited) ishares EDGE MSCI MULTIFACTOR HEALTHCARE ETF February 28, 2018 Security Value COMMON STOCKS 99.81% BIOTECHNOLOGY 11.38% AbbVie Inc. 2,703 $ 313,089 Amgen Inc. 1, ,223 Biogen Inc. a ,541 Celgene Corp. a ,647 Gilead Sciences Inc. 3, ,911 United Therapeutics Corp. a 1, ,940 1,106,351 HEALTH CARE EQUIPMENT & SUPPLIES 24.05% Abbott Laboratories 1, ,638 Align Technology Inc. a ,656 Baxter International Inc. 4, ,751 Cooper Companies Inc. (The) ,387 Edwards Lifesciences Corp. a 2, ,659 Intuitive Surgical Inc. a ,160 Medtronic PLC 1, ,099 ResMed Inc. 2, ,655 Teleflex Inc ,109 Varian Medical Systems Inc. a 1, ,100 2,339,214 HEALTH CARE PROVIDERS & SERVICES 32.78% Aetna Inc. 2, ,671 Anthem Inc. 1, ,786 Centene Corp. a 2, ,232 Cigna Corp. 1, ,332 Henry Schein Inc. a ,927 Humana Inc. 1, ,620 Laboratory Corp. of America Holdings a 1, ,404 McKesson Corp. 1, ,640 Quest Diagnostics Inc. 2, ,351 UnitedHealth Group Inc. 1, ,274 Universal Health Services Inc. Class B 2, ,499 3,188,736 HEALTH CARE TECHNOLOGY 4.73% Cerner Corp. a 3, ,520 Veeva Systems Inc. Class A a 3, , ,421 LIFE SCIENCES TOOLS & SERVICES 7.75% Agilent Technologies Inc. 3, ,787 Mettler-Toledo International Inc. a ,769 Thermo Fisher Scientific Inc ,759 Waters Corp. a 1, , ,902 Security Value PHARMACEUTICALS 19.12% Bristol-Myers Squibb Co. 1,768 $ 117,042 Eli Lilly & Co ,451 Johnson & Johnson 7, ,348 Merck & Co. Inc. 4, ,707 Pfizer Inc. 12, ,289 1,859,837 TOTAL COMMON STOCKS (Cost: $9,201,566) 9,708,461 SHORT-TERM INVESTMENTS 0.06% MONEY MARKET FUNDS 0.06% BlackRock Cash Funds: Treasury, SL Agency 1.32% b,c 6,167 6,167 6,167 TOTAL SHORT-TERM INVESTMENTS (Cost: $6,167) 6,167 TOTAL INVESTMENTS IN SECURITIES 99.87% (Cost: $9,207,733) 9,714,628 Other Assets, Less Liabilities 0.13% 12,214 NET ASSETS % $9,726,842 a Non-income producing security. b Affiliate of the Fund. c Annualized 7-day yield as of period end. S CHEDULES OF I NVESTMENTS 23

24 Schedule of Investments (Unaudited) (Continued) ishares EDGE MSCI MULTIFACTOR HEALTHCARE 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 held at 08/31/17 purchased sold held at 02/28/18 Value at 02/28/18 Income Change in unrealized Net realized appreciation gain (loss) a (depreciation) BlackRock Cash Funds: Institutional, SL Agency b $ $ 63 c $ (31) $ BlackRock Cash Funds: Treasury, SL Agency 5,138 1,029 b 6,167 6, $ 6,167 $ 184 $ (31) $ 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 $9,708,461 $ $ $9,708,461 Money market funds 6,167 6,167 Total $9,714,628 $ $ $9,714,628 See notes to financial statements ishares S EMI-ANNUAL R EPORT TO S HAREHOLDERS

25 Schedule of Investments (Unaudited) ishares EDGE MSCI MULTIFACTOR INDUSTRIALS ETF February 28, 2018 Security Value COMMON STOCKS 99.74% AEROSPACE & DEFENSE 23.18% Boeing Co. (The) 523 $ 189,436 General Dynamics Corp. 42 9,343 Huntington Ingalls Industries Inc ,795 L3 Technologies Inc ,171 Lockheed Martin Corp ,981 Northrop Grumman Corp ,667 Raytheon Co ,921 Textron Inc. 1,471 88,039 United Technologies Corp , ,588 AIR FREIGHT & LOGISTICS 4.36% Expeditors International of Washington Inc. 1,259 81,785 FedEx Corp ,263 United Parcel Service Inc. Class B , ,081 AIRLINES 6.52% American Airlines Group Inc. 1,417 76,872 Southwest Airlines Co. 1,295 74,903 United Continental Holdings Inc. a , ,973 BUILDING PRODUCTS 5.20% AO Smith Corp ,554 Fortune Brands Home & Security Inc. 1,094 66,362 Owens Corning , ,021 COMMERCIAL SERVICES & SUPPLIES 6.84% Republic Services Inc. 1,240 83,303 Rollins Inc. 1,311 65,904 Waste Connections Inc , ,359 CONSTRUCTION & ENGINEERING 2.24% Jacobs Engineering Group Inc. 1,170 71,440 71,440 ELECTRICAL EQUIPMENT 3.70% Eaton Corp. PLC 1, ,766 Rockwell Automation Inc , ,976 INDUSTRIAL CONGLOMERATES 9.82% 3M Co ,175 General Electric Co. 7, ,634 Security Value Honeywell International Inc. 560 $ 84, ,431 MACHINERY 11.70% AGCO Corp ,610 Caterpillar Inc ,430 Cummins Inc ,548 Illinois Tool Works Inc. 41 6,619 Stanley Black & Decker Inc ,261 WABCO Holdings Inc. a , ,245 PROFESSIONAL SERVICES 4.33% ManpowerGroup Inc ,219 Robert Half International Inc. 1,258 71, ,013 ROAD & RAIL 19.07% AMERCO 93 31,992 CSX Corp. 1,210 65,001 JB Hunt Transport Services Inc ,118 Kansas City Southern ,777 Knight-Swift Transportation Holdings Inc. 1,715 82,594 Norfolk Southern Corp ,192 Old Dominion Freight Line Inc ,851 Union Pacific Corp , ,553 TRADING COMPANIES & DISTRIBUTORS 2.78% United Rentals Inc. a ,771 88,771 TOTAL COMMON STOCKS (Cost: $2,865,808) 3,182,451 SHORT-TERM INVESTMENTS 0.04% MONEY MARKET FUNDS 0.04% BlackRock Cash Funds: Treasury, SL Agency 1.32% b,c 1,350 1,350 1,350 TOTAL SHORT-TERM INVESTMENTS (Cost: $1,350) 1,350 S CHEDULES OF I NVESTMENTS 25