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JULY 31, 2016 2016 ANNUAL REPORT iShares Trust 쑺 iShares Adaptive Currency Hedged MSCI EAFE ETF | DEFA | BATS 쑺 iShares Currency Hedged MSCI ACWI ETF | HACW | NYSE Arca 쑺 iShares Currency Hedged MSCI ACWI ex U.S. ETF | HAWX | NYSE Arca 쑺 iShares Currency Hedged MSCI EAFE ETF | HEFA | NYSE Arca 쑺 iShares Currency Hedged MSCI EAFE Small-Cap ETF | HSCZ | NYSE Arca 쑺 iShares MSCI ACWI ETF | ACWI | NASDAQ 쑺 iShares MSCI ACWI ex U.S. ETF | ACWX | NASDAQ 쑺 iShares MSCI EAFE ETF | EFA | NYSE Arca 쑺 iShares MSCI EAFE Small-Cap ETF | SCZ | NASDAQ Table of Contents Management’s Discussions of Fund Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . About Fund Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Shareholder Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Schedules of Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iShares Adaptive Currency Hedged MSCI EAFE ETF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iShares Currency Hedged MSCI ACWI ETF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iShares Currency Hedged MSCI ACWI ex U.S. ETF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iShares Currency Hedged MSCI EAFE ETF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iShares Currency Hedged MSCI EAFE Small-Cap ETF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iShares MSCI ACWI ETF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iShares MSCI ACWI ex U.S. ETF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iShares MSCI EAFE ETF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iShares MSCI EAFE Small-Cap ETF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Financial Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Notes to Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Report of Independent Registered Public Accounting Firm . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Tax Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Board Review and Approval of Investment Advisory Contract . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Supplemental Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Trustee and Officer Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 24 24 25 25 28 32 36 40 43 62 80 94 116 127 136 156 157 159 169 175 THIS PAGE INTENTIONALLY LEFT BLANK. Management’s Discussion of Fund Performance iSHARES® TRUST GLOBAL EQUITY MARKET OVERVIEW Global equity markets declined modestly for the 12 months ended July 31, 2016 (the “reporting period”). The MSCI ACWI, a broad global equity index that includes both developed and emerging markets, returned -0.44% for the reporting period. The modest overall decline in global stock markets masked significant volatility during the reporting period. Stocks fell during the first half of the reporting period amid lower energy prices and weaker global economic growth, including slowdowns in stronger developed economies such as the U.S. and U.K. In response, many of the world’s central banks took more aggressive actions to stimulate economic activity, including expanded quantitative easing measures and negative interest rates. In the U.S., the Federal Reserve Bank (the “Fed”) postponed plans to raise its short-term interest rate target until December 2015, when it ended a seven-year period of near-zero interest rates by increasing the federal funds target rate from a range of 0%-0.25% to a range of 0.25%-0.50%. It was the Fed’s first interest rate hike since June 2006. Central bank stimulus activity and a recovery in energy prices helped global equity markets reverse course after bottoming in midFebruary 2016. The global equity market rally in the latter half of the reporting period was also driven by signs of stabilization in China, which had experienced a marked economic slowdown that put downward pressure on its currency. Late in the reporting period, market volatility increased following the “Brexit” referendum in the U.K., where an affirmative vote to leave the European Union led to a sharp decline in the British pound (which fell by 18% against the U.S. dollar for the reporting period) and increased expectations of an interest rate cut from the Bank of England. Among developed markets, the U.S. was one of the few markets to advance, returning approximately 4% for the reporting period. Although employment growth remained robust, other segments of the U.S. economy struggled, leading to three consecutive quarters of growth below a 1.5% annual rate. As a result, the Fed — which was expected to raise short-term interest rates further in 2016 — held rates steady through the first seven months of the year. Stable Fed monetary policy provided a favorable backdrop for U.S. equity market performance. Equity markets in the Asia/Pacific region were mixed. Australia and New Zealand posted positive returns for the reporting period, benefiting from improving economic growth. However, other markets in the region, including Japan and Singapore, fell during the reporting period. In particular, the Japanese equity market declined by nearly 20%, but a strong rally in the Japanese yen (which appreciated by 17% against the U.S. dollar) helped offset the overall market decline. European stock markets declined by approximately 10% for the reporting period. Markets in Italy and Spain, which were adversely affected by political instability and struggling banking sectors, declined the most, while Belgium and Denmark performed best. In the U.K., the equity market advanced by about 4%, but the sharp decline in the British pound led to negative returns in U.S. dollar terms. Emerging markets stocks declined by approximately 1% for the reporting period in U.S. dollar terms. Latin American equity markets generated the best returns, led by rebounding markets in Peru and Brazil. Stock markets in Eastern Europe fell the most, primarily because of sharp declines in Greece, Poland, and the Czech Republic. MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 5 Management’s Discussion of Fund Performance iSHARES® ADAPTIVE CURRENCY HEDGED MSCI EAFE ETF Performance as of July 31, 2016 Cumulative Total Returns Since Inception NAV MARKET INDEX 0.01% 0.02% 0.83% GROWTH OF $10,000 INVESTMENT (SINCE INCEPTION AT NET ASSET VALUE) $10,200 $10,083 $10,001 $10,000 $9,800 $9,600 $9,400 $9,200 Jan 16 Feb 16 Mar 16 Apr 16 May 16 Jun 16 Jul 16 Index Fund The inception date of the Fund was 1/5/16. The first day of secondary market trading was 1/7/16. 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 24 for more information. Shareholder Expenses Actual Beginning Account Value (2/1/16) Ending Account Value (7/31/16) $ $ 1,000.00 1,035.00 Hypothetical 5% Return Expenses Paid During Period a,b Beginning Account Value (2/1/16) Ending Account Value (7/31/16) Expenses Paid During Period a,b $ $ $ $ 0.15 1,000.00 1,024.70 0.15 Annualized Expense Ratio a 0.03% 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 (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 24 for more information. The iShares Adaptive Currency Hedged MSCI EAFE ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization equities in Europe, Australasia, and the Far East while dynamically hedging currency risk for a U.S. dollar based investor, as represented by the MSCI EAFE® Adaptive Hedge to USD Index (the “Index”). The Index applies a methodology, based on a hedge ratio as calculated by MSCI Inc., that sells the total value or a portion of the total value of each non-U.S. dollar currency in which the constituent securities are denominated in the form of a one-month currency contract to create a “hedge” against fluctuations in the relative value of the currencies in relation to the U.S. dollar. The hedge ratio is based on four commonly used indicators for measuring currency risk. The overall effect, since the four indicators are equally weighted, is that each foreign currency represented by constituent weights in the Index can be unhedged, 25% hedged, 50% hedged, 75% hedged or fully hedged relative to the U.S. dollar. In order to replicate the “hedging” component of the Index, the Fund enters into foreign currency forward contracts designed to offset the Fund’s exposure to the component currencies. 6 2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS Management’s Discussion of Fund Performance (Continued) iSHARES® ADAPTIVE CURRENCY HEDGED MSCI EAFE ETF 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 EAFE ETF. For the period from January 5, 2016 (inception date of the Fund) through July 31, 2016 (the “reporting period”), the total return for the Fund was 0.01%, net of fees, while the total return for the Index was 0.83%. From an equity perspective, large- and mid-capitalization developed market stocks outside of North America fell sharply during the reporting period in U.S. dollar terms. The United Kingdom, which accounted for approximately 20% of the Index on average during the reporting period, was the leading detractor from performance measured in U.S. dollars. Modest equity performance and the sharply declining British pound in the wake of the Brexit vote detracted from returns for U.S. investors. Japanese equities, which accounted for about 23% of the Index on average, were notable detractors from Index performance. Japanese equities fell sharply amid continued slow growth, the threat of deflation, and a stronger yen. Concerns about the pace of economic growth, European banking sector health, and uncertainty about the future of the European Union weighed on stocks throughout the Eurozone. For the reporting period, the U.S. dollar posted a modest negative return relative to other major currencies, measured as a group. The British pound fell approximately 18% relative to the U.S. dollar during the reporting period, as British voters elected to leave the European Union. Meanwhile, the Japanese yen, the Australian dollar, and the euro gained about 17%, 4%, and 1% relative to the U.S. dollar, respectively. A weaker U.S. dollar typically increases returns for U.S. investors with international investments denominated in stronger foreign currencies. However, currency hedging with short-term currency forward contracts seeks to minimize the volatility — both on the upside and on the downside — related to holding foreign-currency-denominated securities. The Index’s implementation of foreign exchange hedging using one-month forward rates partially offset the positive impact of the U.S. dollar’s performance relative to the other currencies. The adaptive currency hedging component of the Index utilizes a hedge ratio that modifies currency exposure based on the difference in interest rates, relative valuation, currency momentum, and currency volatility. Currency hedging largely offset the negative impact of the British pound. As much as 75% of the Index’s currency exposure to the British pound was hedged during the reporting period, and prior to the post-Brexit decline of the British pound. However, the rising Japanese yen was also hedged at approximately 75% due to the currency’s weak fundamentals, leaving less room for the Index to benefit from the rising Japanese yen. ALLOCATION BY SECTOR1 As of 7/31/16 TEN LARGEST COUNTRIES1 As of 7/31/16 Percentage of Total Investments 2 Sector Financials Industrials Consumer Staples Consumer Discretionary Health Care Materials Information Technology Telecommunication Services Energy Utilities 22.67% 13.86 12.85 12.19 12.19 7.04 5.62 4.92 4.82 3.84 TOTAL 100.00% Country Percentage of Total Investments 2 Japan United Kingdom France Switzerland Germany Australia Hong Kong Netherlands Spain Sweden 23.58% 19.19 9.66 9.05 8.87 7.49 3.26 3.19 2.97 2.73 TOTAL 89.99% 1 Table shown is for the iShares MSCI EAFE ETF, the underlying fund in which the Fund invests. 2 Excludes money market funds. MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 7 Management’s Discussion of Fund Performance iSHARES® CURRENCY HEDGED MSCI ACWI ETF Performance as of July 31, 2016 Average Annual Total Returns 1 Year Since Inception Cumulative Total Returns NAV MARKET INDEX NAV MARKET INDEX (0.80)% (20.61)% (0.93)% (0.80)% (20.61)% (0.93)% 1.20% 1.20% 0.78% 1.31% 1.31% 0.84% GROWTH OF $10,000 INVESTMENT (SINCE INCEPTION AT NET ASSET VALUE) $10,500 $10,131 $10,084 $10,000 $9,500 $9,000 $8,500 Jul 15 Oct 15 Jan 16 Apr 16 Jul 16 Index Fund 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 24 for more information. Shareholder Expenses Actual Beginning Account Value (2/1/16) Ending Account Value (7/31/16) $ $ 1,000.00 1,092.50 Hypothetical 5% Return Expenses Paid During Period a,b Beginning Account Value (2/1/16) Ending Account Value (7/31/16) Expenses Paid During Period a,b $ $ $ $ 0.16 1,000.00 1,024.70 0.15 Annualized Expense Ratio a 0.03% 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 (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 24 for more information. The iShares Currency Hedged MSCI ACWI ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization developed and emerging equities while mitigating exposure to fluctuations between the value of the component currencies and the U.S. dollar, as represented by the MSCI ACWI 100% Hedged to USD Index (the “Index”). The Index sells forward the non-U.S. dollar currencies in which the constituent securities are denominated in an amount equal to those securities at a one-month forward rate to effectively create a “hedge” against fluctuations in the relative value of the component currencies in relation to the U.S. dollar. In order to replicate the “hedging” component of the Index, the Fund enters into foreign currency forward contracts designed to offset the Fund’s exposure to the component currencies. 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 8 2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS Management’s Discussion of Fund Performance (Continued) iSHARES® CURRENCY HEDGED MSCI ACWI ETF 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 ACWI ETF. For the 12-month reporting period ended July 31, 2016, the total return for the Fund was -0.80%, net of fees, while the total return for the Index was -0.93%. Large- and mid-capitalization developed and emerging market equities had fractionally negative returns during the reporting period in U.S. dollar terms. The United Kingdom, which accounted for approximately 7% of the Index on average during the reporting period, was the leading detractor from performance measured in U.S. dollars. Modest equity performance and the sharply declining British pound in the wake of the Brexit vote detracted from returns for U.S. investors. Concerns about economic growth, the health of the European banking sector, and uncertainty associated with Brexit weighed on stocks in much of the Eurozone — France, Spain, Germany, and Italy all posted negative returns — as well as in Switzerland. Japanese equities, which accounted for approximately 8% of the Index on average, were also notable detractors from the Index’s performance. Japanese equities fell sharply in local currency terms amid continued slow growth, the threat of deflation, and a stronger Japanese yen. U.S. stocks, which represented about 53% of the Index on average during the reporting period, contributed the most to Index performance, measured in U.S. dollars. U.S. stocks benefited from better relative economic growth, as well as currency and political stability relative to the Eurozone. For the reporting period, the U.S. dollar’s performance was mixed relative to other major currencies. The British pound fell approximately 18% relative to the U.S. dollar during the reporting period, as British voters elected to leave the European Union. Meanwhile, the Japanese yen, the Australian dollar, and the euro gained about 17%, 4%, and 1% relative to the U.S. dollar, respectively. On balance, the U.S. dollar’s modest overall decline relative to the component currencies in the Index meant hedging activity detracted from the Index’s total return for the reporting period. A weaker U.S. dollar typically increases returns for U.S. investors with international investments denominated in stronger foreign currencies. However, a fully hedged investor seeks to bypass the volatility — both on the upside and on the downside — related to holding foreign-currency-denominated securities. The Index’s implementation of foreign exchange hedging using one-month forward rates offset the positive impact of the U.S. dollar’s performance relative to the other currencies. ALLOCATION BY SECTOR1 As of 7/31/16 TEN LARGEST COUNTRIES1 As of 7/31/16 Percentage of Total Investments 2 Sector Financials Information Technology Health Care Consumer Discretionary Industrials Consumer Staples Energy Materials Telecommunication Services Utilities 19.78% 15.39 12.52 12.16 10.77 10.48 6.60 4.83 3.99 3.48 TOTAL 100.00% Country Percentage of Total Investments 2 United States Japan United Kingdom Canada France Switzerland Germany China Australia South Korea 53.32% 7.77 6.50 3.16 3.13 3.00 2.97 2.69 2.48 1.59 TOTAL 86.61% 1 Table shown is for the iShares MSCI ACWI ETF, the underlying fund in which the Fund invests. 2 Excludes money market funds. MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 9 Management’s Discussion of Fund Performance iSHARES® CURRENCY HEDGED MSCI ACWI ex U.S. ETF Performance as of July 31, 2016 Average Annual Total Returns 1 Year Since Inception Cumulative Total Returns NAV MARKET INDEX NAV MARKET INDEX (6.97)% (6.84)% (6.55)% (6.97)% (6.84)% (6.55)% (4.61)% (4.53)% (4.94)% (5.02)% (4.93)% (5.35)% GROWTH OF $10,000 INVESTMENT (SINCE INCEPTION AT NET ASSET VALUE) $10,500 $10,000 $9,498 $9,465 $9,500 $9,000 $8,500 Jul 15 Oct 15 Jan 16 Apr 16 Jul 16 Index Fund 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 24 for more information. Shareholder Expenses Actual Hypothetical 5% Return Beginning Account Value (2/1/16) Ending Account Value (7/31/16) Expenses Paid During Period a,b Beginning Account Value (2/1/16) Ending Account Value (7/31/16) Expenses Paid During Period a,b $ $ $ $ $ $ 1,000.00 1,050.40 0.15 1,000.00 1,024.70 0.15 Annualized Expense Ratio a 0.03% 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 (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 24 for more information. The iShares Currency Hedged MSCI ACWI ex U.S. ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization developed and emerging equities, excluding the U.S., while mitigating exposure to fluctuations between the value of the component currencies and the U.S. dollar, as represented by the MSCI ACWI ex USA 100% Hedged to USD Index (the “Index”). The Index sells forward the non-U.S. dollar currencies in which the constituent securities are denominated in an amount equal to those securities at a one-month forward rate to effectively create a “hedge” against fluctuations in the relative value of the component currencies in relation to the U.S. dollar. In order to replicate the “hedging” component of the Index, the Fund enters into foreign currency forward contracts designed to offset the Fund’s exposure to the component currencies. 10 2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS Management’s Discussion of Fund Performance (Continued) iSHARES® CURRENCY HEDGED MSCI ACWI ex U.S. ETF 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 ACWI ex U.S. ETF. For the 12-month reporting period ended July 31, 2016, the total return for the Fund was -6.97%, net of fees, while the total return for the Index was -6.55%. From an equity perspective, the United Kingdom, which accounted for roughly 14% of the Index on average during the reporting period, was the leading detractor from performance, measured in U.S. dollars. Modest equity performance and the sharply declining British pound in the wake of the Brexit vote detracted from returns for U.S. investors. Concerns about the pace of economic growth, European banking sector health, and uncertainty associated with Brexit weighed on shares in much of the Eurozone — France, Spain, Germany, and Italy all posted negative returns — as well as in Switzerland. Similarly, Japanese equities, which accounted for approximately 17% of the Index on average, were notable detractors from the Index’s performance, amid continued slow growth, the threat of deflation, and a stronger yen. For the reporting period, the U.S. dollar’s performance was mixed relative to other major currencies. The British pound fell approximately 18% relative to the U.S. dollar during the reporting period, as British voters elected to leave the European Union. Meanwhile, the Japanese yen, the Australian dollar, and the euro gained about 17%, 4%, and 1% relative to the U.S. dollar, respectively. On balance, the U.S. dollar’s modest overall decline relative to the component currencies in the Index meant hedging activity detracted from the Index’s total return for the reporting period. A weaker U.S. dollar typically increases returns for U.S. investors with international investments denominated in stronger foreign currencies. However, a fully hedged investor seeks to bypass the volatility — both on the upside and on the downside — related to holding foreign-currency-denominated securities. The Index’s implementation of foreign exchange hedging offset the positive impact of the U.S. dollar’s performance relative to the other currencies. ALLOCATION BY SECTOR1 As of 7/31/16 TEN LARGEST COUNTRIES1 As of 7/31/16 Percentage of Total Investments 2 Sector Financials Industrials Consumer Staples Consumer Discretionary Health Care Information Technology Materials Energy Telecommunication Services Utilities 24.56% 11.63 11.36 11.36 9.39 9.29 7.21 6.52 5.23 3.45 TOTAL 100.00% Country Percentage of Total Investments 2 Japan United Kingdom France Canada Switzerland Germany China Australia South Korea Taiwan 16.64% 13.64 6.79 6.74 6.40 6.26 5.69 5.31 3.33 2.77 TOTAL 73.57% 1 Table shown is for the iShares MSCI ACWI ex U.S. ETF, the underlying fund in which the Fund invests. 2 Excludes money market funds. MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 11 Management’s Discussion of Fund Performance iSHARES® CURRENCY HEDGED MSCI EAFE ETF Performance as of July 31, 2016 Average Annual Total Returns 1 Year Since Inception Cumulative Total Returns NAV MARKET INDEX NAV MARKET INDEX (9.41)% (9.41)% (8.74)% (9.41)% (9.41)% (8.74)% 4.54% 4.54% 4.65% 11.73% 11.73% 12.04% GROWTH OF $10,000 INVESTMENT (SINCE INCEPTION AT NET ASSET VALUE) $13,000 $12,000 $11,204 $11,173 $11,000 $10,000 $9,000 Apr 14 Jul 14 Oct 14 Jan 15 Apr 15 Jul 15 Oct 15 Jan 16 Apr 16 Jul 16 Index Fund The inception date of the Fund was 1/31/14. The first day of secondary market trading was 2/4/14. 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 24 for more information. Shareholder Expenses Actual Beginning Account Value (2/1/16) Ending Account Value (7/31/16) $ $ 1,000.00 1,021.00 Hypothetical 5% Return Expenses Paid During Period a,b Beginning Account Value (2/1/16) Ending Account Value (7/31/16) Expenses Paid During Period a,b $ $ $ $ 0.15 1,000.00 1,024.70 0.15 Annualized Expense Ratio a 0.03% 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 (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 24 for more information. The iShares Currency Hedged MSCI EAFE ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization equities in Europe, Australasia, and the Far East while mitigating exposure to fluctuations between the value of the component currencies and the U.S. dollar, as represented by the MSCI EAFE® 100% Hedged to USD Index (the “Index”). The Index sells forward the non-U.S. dollar currencies in which the constituent securities are denominated in an amount equal to those securities at a one-month forward rate to effectively create a “hedge” against fluctuations in the relative value of the component currencies in relation to the U.S. dollar. In order to replicate the “hedging” component of the Index, the Fund enters into foreign currency forward contracts designed to offset the Fund’s exposure to the component currencies. 12 2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS Management’s Discussion of Fund Performance (Continued) iSHARES® CURRENCY HEDGED MSCI EAFE ETF 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 EAFE ETF. For the 12-month reporting period ended July 31, 2016, the total return for the Fund was -9.41%, net of fees, while the total return for the Index was -8.74%. The United Kingdom, which accounted for roughly 20% of the Index on average during the reporting period, was the leading detractor from performance measured in U.S. dollars. Modest equity performance and the sharply declining British pound in the wake of the Brexit vote detracted from returns for U.S. investors. Concerns about the pace of economic growth, European banking sector health, and uncertainty associated with Brexit weighed on stocks in much of the Eurozone — Spain, France, Germany, and Italy all posted negative returns — as well as in Switzerland. Similarly, Japanese equities, which accounted for about 23% of the Index on average, were notable detractors from the Index’s performance, amid continued slow growth, the threat of deflation, and a stronger yen. On the positive side, Australia was the largest positive contributor to Index performance for the reporting period. For the reporting period, the U.S. dollar’s performance was mixed relative to other major currencies. The British pound fell approximately 18% relative to the U.S. dollar during the reporting period, as British voters elected to leave the European Union. Meanwhile, the Japanese yen, the Australian dollar, and the euro gained about 17%, 4%, and 1% relative to the U.S. dollar, respectively. On balance, the U.S. dollar’s modest overall decline relative to the component currencies in the Index meant hedging activity detracted from the Index’s total return for the reporting period. A weaker U.S. dollar typically increases returns for U.S. investors with international investments denominated in stronger foreign currencies. However, a fully hedged investor seeks to bypass the volatility — both on the upside and on the downside — related to holding foreign-currency-denominated securities. The Index’s implementation of foreign exchange hedging offset the positive impact of the U.S. dollar’s performance relative to the other currencies. ALLOCATION BY SECTOR1 As of 7/31/16 TEN LARGEST COUNTRIES1 As of 7/31/16 Percentage of Total Investments 2 Sector Financials Industrials Consumer Staples Consumer Discretionary Health Care Materials Information Technology Telecommunication Services Energy Utilities 22.67% 13.86 12.85 12.19 12.19 7.04 5.62 4.92 4.82 3.84 TOTAL 100.00% Country Percentage of Total Investments 2 Japan United Kingdom France Switzerland Germany Australia Hong Kong Netherlands Spain Sweden 23.58% 19.19 9.66 9.05 8.87 7.49 3.26 3.19 2.97 2.73 TOTAL 89.99% 1 Table shown is for the iShares MSCI EAFE ETF, the underlying fund in which the Fund invests. 2 Excludes money market funds. MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 13 Management’s Discussion of Fund Performance iSHARES® CURRENCY HEDGED MSCI EAFE SMALL-CAP ETF Performance as of July 31, 2016 Average Annual Total Returns 1 Year Since Inception Cumulative Total Returns NAV MARKET INDEX NAV MARKET INDEX (2.35)% (2.39)% (1.45)% (2.35)% (2.39)% (1.45)% 0.78% 0.78% 0.84% 0.85% 0.85% 0.91% GROWTH OF $10,000 INVESTMENT (SINCE INCEPTION AT NET ASSET VALUE) $11,000 $10,500 $10,091 $10,085 $10,000 $9,500 $9,000 Jul 15 Oct 15 Jan 16 Apr 16 Jul 16 Index Fund 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 24 for more information. Shareholder Expenses Actual Beginning Account Value (2/1/16) Ending Account Value (7/31/16) $ $ 1,000.00 1,039.40 Hypothetical 5% Return Expenses Paid During Period a,b Beginning Account Value (2/1/16) Ending Account Value (7/31/16) Expenses Paid During Period a,b $ $ $ $ 0.15 1,000.00 1,024.70 0.15 Annualized Expense Ratio a 0.03% 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 (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 24 for more information. The iShares Currency Hedged MSCI EAFE Small-Cap ETF (the “Fund”) seeks to track the investment results of an index composed of small capitalization developed market equities, excluding the U.S. and Canada, while mitigating exposure to fluctuations between the value of the component currencies and the U.S. dollar, as represented by the MSCI EAFE Small-Cap 100% Hedged to USD Index (the “Index”). The Index sells forward the non-U.S. dollar currencies in which the constituent securities are denominated in an amount equal to those securities at a one-month forward rate to effectively create a “hedge” against fluctuations in the relative value of the component currencies in relation to the U.S. dollar. In order to replicate the “hedging” component of the Index, the Fund enters into foreign currency forward contracts designed to offset the Fund’s exposure to the component currencies. 14 2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS Management’s Discussion of Fund Performance (Continued) iSHARES® CURRENCY HEDGED MSCI EAFE SMALL-CAP ETF 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 EAFE Small-Cap ETF. For the 12-month reporting period ended July 31, 2016, the total return for the Fund was -2.35%, net of fees, while the total return for the Index was -1.45%. As represented by the Index, small-cap developed market equities outside of North America produced a small positive return in U.S. dollar terms during an otherwise challenging period for many broad measures of international developed market performance. Japanese equities, which accounted for more than 30% of the Index on average, were the leading contributors to performance. The domestic focus of Japanese small-cap companies generally left them somewhat insulated against the effects of the rising Japanese yen and the economic and currency struggles of China. Other contributors to performance included Australia, Sweden and Germany, among others. The United Kingdom, which accounted for 20% of the Index on average during the reporting period, was the leading detractor from performance. Expectations of slower growth in the United Kingdom following the Brexit vote weighed on U.K. equities. Italy, Hong Kong, and Spain were other notable detractors. For the reporting period, the U.S. dollar’s performance was mixed relative to other major currencies. The British pound fell approximately 18% relative to the U.S. dollar during the reporting period, as British voters elected to leave the European Union. Meanwhile, the Japanese yen, the Australian dollar, and the euro gained about 17%, 4%, and 1% relative to the U.S. dollar, respectively. On balance, the U.S. dollar’s modest overall decline relative to the component currencies in the Index meant hedging activity detracted from the Index’s total return for the reporting period. A weaker U.S. dollar typically increases returns for U.S. investors with international investments denominated in stronger foreign currencies. However, a fully hedged investor seeks to bypass the volatility — both on the upside and on the downside — related to holding foreign-currency-denominated securities. The Index’s implementation of foreign exchange hedging offset the positive impact of the U.S. dollar’s performance relative to the other currencies. ALLOCATION BY SECTOR1 As of 7/31/16 TEN LARGEST COUNTRIES1 As of 7/31/16 Percentage of Total Investments 2 Sector Financials Industrials Consumer Discretionary Information Technology Materials Health Care Consumer Staples Energy Utilities Telecommunication Services Investment Companies 22.77% 21.63 15.65 10.52 9.12 7.96 7.05 2.50 1.45 1.19 0.16 TOTAL Country Percentage of Total Investments 2 Japan United Kingdom Australia Germany Sweden Switzerland France Italy Hong Kong Spain 32.24% 17.16 6.68 6.09 5.44 4.43 4.17 3.66 2.60 2.40 TOTAL 84.87% 100.00% 1 Table shown is for the iShares MSCI EAFE Small-Cap ETF, the underlying fund in which the Fund invests. 2 Excludes money market funds. MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 15 Management’s Discussion of Fund Performance iSHARES® MSCI ACWI ETF Performance as of July 31, 2016 Average Annual Total Returns 1 Year 5 Years Since Inception Cumulative Total Returns NAV MARKET INDEX NAV MARKET INDEX (0.13)% (0.10)% (0.44)% (0.13)% (0.10)% (0.44)% 6.82% 6.79% 6.62% 39.08% 38.91% 37.79% 3.96% 3.94% 3.80% 38.30% 38.05% 36.48% GROWTH OF $10,000 INVESTMENT (SINCE INCEPTION AT NET ASSET VALUE) $16,000 $13,830 $13,648 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 Jul 08 Jul 09 Jul 10 Jul 11 Jul 12 Jul 13 Jul 14 Jul 15 Jul 16 Index Fund The inception date of the Fund was 3/26/08. The first day of secondary market trading was 3/28/08. Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 24 for more information. Shareholder Expenses Actual Beginning Account Value (2/1/16) Ending Account Value (7/31/16) $ $ 1,000.00 1,123.60 Hypothetical 5% Return Expenses Paid During Period a Beginning Account Value (2/1/16) Ending Account Value (7/31/16) Expenses Paid During Period a $ $ $ $ 1.69 1,000.00 1,023.30 1.61 Annualized Expense Ratio 0.32% 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 (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 24 for more information. The iShares MSCI ACWI ETF (the “Fund”) seeks to track the investment results of an index composed of large- and midcapitalization developed and emerging market equities, as represented by the MSCI ACWI (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended July 31, 2016, the total return for the Fund was -0.13%, net of fees, while the total return for the Index was -0.44%. As represented by the Index, large- and mid-capitalization developed and emerging market equities posted fractionally negative returns during the reporting period in U.S. dollar terms. 16 2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS Management’s Discussion of Fund Performance (Continued) iSHARES® MSCI ACWI ETF The United Kingdom was the leading detractor from Index performance for the reporting period. The U.K. equity market finished with positive returns in local currency terms, buoyed by the swift resolution of the leadership crisis following the Brexit vote, the prospect of lower interest rates and the sharp decline in the British pound. However, the slump in the British pound relative to the U.S. dollar meant a negative return for U.S. investors. Concerns about economic growth, the European banking sector health, and uncertainty associated with Brexit weighed on stocks in much of the Eurozone — France, Spain, Germany, and Italy all posted negative returns — as well as in Switzerland. Similarly, Japanese equities were notable detractors from the Index’s performance, amid continued slow growth, the threat of deflation, and a stronger yen. U.S. stocks, which represented more than 50% of the Index on average during the reporting period, contributed the most to Index performance. U.S. stocks benefited from better relative economic growth, as well as currency and political stability relative to the Eurozone. Other contributors included South Korea, Brazil, and Australia, which enjoyed positive performance in their respective local equity markets, as well as seeing their currencies appreciate relative to the U.S. dollar. From a sector standpoint, financials, which represented more than 20% of the Index on average during the reporting period, detracted the most from the Index’s return. Health care, consumer discretionary, and energy also detracted from performance. Information technology stocks contributed the most to Index performance. The consumer staples, industrials, utilities, materials, and telecommunication services sectors also contributed to performance. ALLOCATION BY SECTOR As of 7/31/16 Percentage of Total Investments* Sector Financials Information Technology Health Care Consumer Discretionary Industrials Consumer Staples Energy Materials Telecommunication Services Utilities 19.78% 15.39 12.52 12.16 10.77 10.48 6.60 4.83 3.99 3.48 TOTAL * TEN LARGEST COUNTRIES As of 7/31/16 100.00% Country Percentage of Total Investments* United States Japan United Kingdom Canada France Switzerland Germany China Australia South Korea 53.32% 7.77 6.50 3.16 3.13 3.00 2.97 2.69 2.48 1.59 TOTAL 86.61% Excludes money market funds. MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 17 Management’s Discussion of Fund Performance iSHARES® MSCI ACWI ex U.S. ETF Performance as of July 31, 2016 Average Annual Total Returns 1 Year 5 Years Since Inception Cumulative Total Returns NAV MARKET INDEX NAV MARKET INDEX (5.52)% (5.49)% (5.54)% (5.52)% (5.49)% (5.54)% 1.30% 1.31% 1.35% 6.65% 6.74% 6.94% 0.01% (0.02)% 0.39% 0.10% (0.16)% 3.31% GROWTH OF $10,000 INVESTMENT (SINCE INCEPTION AT NET ASSET VALUE) $12,000 $10,331 $10,010 $10,000 $8,000 $6,000 $4,000 Jul 08 Jul 09 Jul 10 Jul 11 Jul 12 Jul 13 Jul 14 Jul 15 Jul 16 Index Fund The inception date of the Fund was 3/26/08. The first day of secondary market trading was 3/28/08. Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 24 for more information. Shareholder Expenses Actual Beginning Account Value (2/1/16) Ending Account Value (7/31/16) $ $ 1,000.00 1,114.80 Hypothetical 5% Return Expenses Paid During Period a Beginning Account Value (2/1/16) Ending Account Value (7/31/16) Expenses Paid During Period a $ $ $ $ 1.68 1,000.00 1,023.30 1.61 Annualized Expense Ratio 0.32% 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 (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 24 for more information. The iShares MSCI ACWI ex U.S. ETF (the “Fund”) seeks to track the investment results of an index composed of large- and midcapitalization non-U.S. equities, as represented by the MSCI ACWI ex USA Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended July 31, 2016, the total return for the Fund was -5.52%, net of fees, while the total return for the Index was -5.54%. As represented by the Index, large- and mid-capitalization non-U.S. equities posted negative returns during the reporting period in U.S. dollar terms. 18 2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS Management’s Discussion of Fund Performance (Continued) iSHARES® MSCI ACWI ex U.S. ETF The United Kingdom, which accounted for roughly 14% of the Index on average during the reporting period, was the leading detractor from performance. The U.K. equity market had a positive return in local currency terms, buoyed by the swift resolution of the leadership crisis following the Brexit vote, the prospect of lower interest rates and the sharp decline of the British pound. However, the slump in the British pound relative to the U.S. dollar meant a negative return for U.S. investors. Concerns about the pace of economic growth, European banking sector health, and uncertainty associated with Brexit weighed on stocks in much of the Eurozone — France, Spain, Germany, and Italy all posted negative returns — as well as in Switzerland. Similarly, Japanese equities, which accounted for approximately 17% of the Index on average, were notable detractors from the Index’s performance, amid continued slow growth, the threat of deflation, and a stronger yen. A handful of countries contributed to Index performance, led by South Korea, Brazil, and Australia. All three countries posted positive performance in their respective local equity markets, as their currencies appreciated relative to the U.S. dollar. From a sector standpoint, financials, which represented more than a quarter of the Index on average during the reporting period, detracted the most from the Index’s return. European financials stocks experienced volatility in currency and financial markets, as well as concerns about economic growth and the fate of the European Union in the wake of the Brexit vote. Information technology and consumer staples were the only sectors to contribute meaningfully to Index performance for the reporting period. ALLOCATION BY SECTOR As of 7/31/16 Percentage of Total Investments* Sector Financials Industrials Consumer Staples Consumer Discretionary Health Care Information Technology Materials Energy Telecommunication Services Utilities 24.56% 11.63 11.36 11.36 9.39 9.29 7.21 6.52 5.23 3.45 TOTAL * TEN LARGEST COUNTRIES As of 7/31/16 100.00% Country Percentage of Total Investments* Japan United Kingdom France Canada Switzerland Germany China Australia South Korea Taiwan 16.64% 13.64 6.79 6.74 6.40 6.26 5.69 5.31 3.33 2.77 TOTAL 73.57% Excludes money market funds. MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 19 Management’s Discussion of Fund Performance iSHARES® MSCI EAFE ETF Performance as of July 31, 2016 Average Annual Total Returns 1 Year 5 Years 10 Years Cumulative Total Returns NAV MARKET INDEX NAV MARKET INDEX (7.54)% (7.76)% (7.53)% (7.54)% (7.76)% (7.53)% 2.92% 2.92% 3.02% 15.48% 15.46% 16.03% 1.90% 1.82% 1.98% 20.67% 19.76% 21.67% GROWTH OF $10,000 INVESTMENT (AT NET ASSET VALUE) $14,000 $12,167 $12,067 $12,000 $10,000 $8,000 $6,000 $4,000 Jul 07 Jul 08 Jul 09 Jul 10 Jul 11 Jul 12 Jul 13 Jul 14 Jul 15 Jul 16 Index Fund 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 24 for more information. Shareholder Expenses Actual Beginning Account Value (2/1/16) Ending Account Value (7/31/16) $ $ 1,000.00 1,083.00 Hypothetical 5% Return Expenses Paid During Period a Beginning Account Value (2/1/16) Ending Account Value (7/31/16) Expenses Paid During Period a $ $ $ $ 1.66 1,000.00 1,023.30 1.61 Annualized Expense Ratio 0.32% 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 (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 24 for more information. The iShares MSCI EAFE ETF (the “Fund”) seeks to track the investment results of an index composed of large- and midcapitalization developed market equities, excluding the U.S. and Canada, as represented by the MSCI EAFE Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended July 31, 2016, the total return for the Fund was -7.54%, net of fees, while the total return for the Index was -7.53%. As represented by the Index, large- and mid-capitalization developed market equities outside of North America fell sharply during the reporting period in U.S. dollar terms. 20 2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS Management’s Discussion of Fund Performance (Continued) iSHARES® MSCI EAFE ETF The United Kingdom, which accounted for roughly 20% of the Index on average during the reporting period, was the leading detractor from performance. The U.K. equity market finished with a positive return in local currency terms, buoyed by the swift resolution of the leadership crisis following the Brexit vote, the prospect of lower interest rates and the sharp decline of the British pound. However, the slump in the British pound relative to the U.S. dollar meant a negative return for U.S. investors. Concerns about the pace of economic growth, European banking sector health, and uncertainty associated with Brexit weighed on stocks in much of the Eurozone — Spain, France, Germany, and Italy all posted negative returns — as well as in Switzerland. Similarly, Japanese equities, which accounted for nearly a quarter of the Index on average, were notable detractors from the Index’s performance, amid continued slow growth, the threat of deflation, and a stronger yen. Australia contributed to Index performance for the reporting period, as the country’s equity market rose in local currency terms and the Australian dollar appreciated relative to the U.S. dollar. From a sector standpoint, financials, which represented roughly a quarter of the Index on average during the reporting period, detracted from the Index’s return. Many European financials stocks experienced volatility in currency and financial markets, as well as concerns about economic growth and the fate of the European Union in the wake of the Brexit vote. The only sectors to contribute to Index performance for the reporting period were consumer staples and information technology. ALLOCATION BY SECTOR As of 7/31/16 Percentage of Total Investments* Sector Financials Industrials Consumer Staples Consumer Discretionary Health Care Materials Information Technology Telecommunication Services Energy Utilities 22.67% 13.86 12.85 12.19 12.19 7.04 5.62 4.92 4.82 3.84 TOTAL * TEN LARGEST COUNTRIES As of 7/31/16 100.00% Country Percentage of Total Investments* Japan United Kingdom France Switzerland Germany Australia Hong Kong Netherlands Spain Sweden 23.58% 19.19 9.66 9.05 8.87 7.49 3.26 3.19 2.97 2.73 TOTAL 89.99% Excludes money market funds. MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 21 Management’s Discussion of Fund Performance iSHARES® MSCI EAFE SMALL-CAP ETF Performance as of July 31, 2016 Average Annual Total Returns 1 Year 5 Years Since Inception Cumulative Total Returns NAV MARKET INDEX NAV MARKET INDEX 1.35% 0.80% 1.38% 1.35% 0.80% 1.38% 6.46% 6.32% 6.32% 36.73% 35.87% 35.88% 2.73% 2.67% 2.86% 26.22% 25.55% 27.62% GROWTH OF $10,000 INVESTMENT (SINCE INCEPTION AT NET ASSET VALUE) $14,000 $12,762 $12,622 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 Jul 08 Jul 09 Jul 10 Jul 11 Jul 12 Jul 13 Jul 14 Jul 15 Jul 16 Index Fund The inception date of the Fund was 12/10/07. The first day of secondary market trading was 12/12/07. Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 24 for more information. Shareholder Expenses Actual Beginning Account Value (2/1/16) Ending Account Value (7/31/16) $ $ 1,000.00 1,115.60 Hypothetical 5% Return Expenses Paid During Period a Beginning Account Value (2/1/16) Ending Account Value (7/31/16) Expenses Paid During Period a $ $ $ $ 2.10 1,000.00 1,022.90 2.01 Annualized Expense Ratio 0.40% 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 (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 24 for more information. The iShares MSCI EAFE Small-Cap ETF (the “Fund”) seeks to track the investment results of an index composed of smallcapitalization developed market equities, excluding the U.S. and Canada, as represented by the MSCI EAFE 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 12-month reporting period ended July 31, 2016, the total return for the Fund was 1.35%, net of fees, while the total return for the Index was 1.38%. As represented by the Index, small-capitalization developed market equities outside of North America posted a small positive return in U.S. dollar terms during an otherwise challenging period for many broad measures of international developed market performance. 22 2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS Management’s Discussion of Fund Performance (Continued) iSHARES® MSCI EAFE SMALL-CAP ETF Japanese equities, which accounted for more than 30% of the Index on average, were the leading contributors to performance. The less export-oriented, more domestic focus of Japanese small-capitalization companies generally left them better insulated against the effects of the rising Japanese yen and the economic and currency struggles of China. Other contributors to performance included Australia, Sweden and Germany, among others. The United Kingdom, which accounted for 20% of the Index on average during the reporting period, was the leading detractor from performance. Expectations of slower growth in the United Kingdom following the Brexit vote weighed on U.K. equities. In addition, small-capitalization companies in the United Kingdom generally derive a larger portion of their revenues domestically than do larger companies, meaning they generally benefit less from the sharp decline in the value of the British pound. The slump in the British pound relative to the U.S. dollar further limited returns for U.S. investors. Italy, Hong Kong, and Spain were other notable detractors from Index performance. From a sector standpoint, consumer staples contributed the most to Index performance during the reporting period. The health care, information technology, materials, and industrials sectors were other notable contributors. Financials stocks, which represented 23% of the Index on average, detracted the most from Index performance. Many European financials stocks experienced volatility in currency and financial markets, as well as concerns about economic growth and the fate of the European Union in the wake of the Brexit vote. The consumer discretionary sector also hindered relative performance. ALLOCATION BY SECTOR As of 7/31/16 Percentage of Total Investments* Sector Financials Industrials Consumer Discretionary Information Technology Materials Health Care Consumer Staples Energy Utilities Telecommunication Services Investment Companies 22.77% 21.63 15.65 10.52 9.12 7.96 7.05 2.50 1.45 1.19 0.16 TOTAL * TEN LARGEST COUNTRIES As of 7/31/16 Country Percentage of Total Investments* Japan United Kingdom Australia Germany Sweden Switzerland France Italy Hong Kong Spain 32.24% 17.16 6.68 6.09 5.44 4.43 4.17 3.66 2.60 2.40 TOTAL 84.87% 100.00% Excludes money market funds. MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 23 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 www.ishares.com. Performance results assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. The investment return and principal value of shares will vary with changes in market conditions. Shares may be worth more or less than their original cost when they are redeemed or sold in the market. Performance for certain funds may reflect a waiver of a portion of investment advisory fees. Without such a waiver, performance would have been lower. Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. 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 February 1, 2016 and held through July 31, 2016, 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. 24 2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS Schedule of Investments iSHARES® ADAPTIVE CURRENCY HEDGED MSCI EAFE ETF July 31, 2016 Security Shares Value a b c d INVESTMENT COMPANIES — 100.38% EXCHANGE-TRADED FUNDS — 100.38% iShares MSCI EAFE ETFa 41,122 $2,385,898 2,385,898 TOTAL INVESTMENT COMPANIES (Cost: $2,373,508) Affiliated issuer. See Schedule 1. Affiliated money market fund. The rate quoted is the annualized seven-day yield of the fund at period end. The cost of investments for federal income tax purposes was $2,375,976. Net unrealized appreciation was $10,927, of which $10,927 represented gross unrealized appreciation on securities and $ — represented gross unrealized depreciation on securities. 2,385,898 SHORT-TERM INVESTMENTS — 0.04% MONEY MARKET FUNDS — 0.04% BlackRock Cash Funds: Treasury, SL Agency Shares 0.28%b,c 1,005 1,005 1,005 TOTAL SHORT-TERM INVESTMENTS (Cost: $1,005) 1,005 TOTAL INVESTMENTS IN SECURITIES — 100.42% (Cost: $2,374,513)d Other Assets, Less Liabilities — (0.42)% 2,386,903 (10,064) NET ASSETS — 100.00% $2,376,839 Schedule 1 — Affiliates (Note 2) Investments in issuers considered to be affiliates of the Fund (excluding affiliated money market funds) from January 5, 2016 (commencement of operations) to July 31, 2016, for purposes of Section 2(a)(3) of the 1940 Act, were as follows: Affiliated issuer Shares held at beginning of year Shares purchased — 43,703 iShares MSCI EAFE ETF Shares sold (2,581) Shares held at end of year Value at end of year Dividend income Net realized gain (loss) 41,122 $ 2,385,898 $ 48,520 $ (4,807) Schedule 2 — Forward Currency Contracts (Note 6) Forward currency contracts outstanding as of July 31, 2016 were as follows: Currency purchased AUD CHF DKK EUR GBP ILS JPY NOK 121,000 56,000 84,000 168,000 249,000 1,000 46,168,000 61,000 SCHEDULES OF Currency sold USD USD USD USD USD USD USD USD INVESTMENTS 90,825 57,684 12,610 187,610 329,303 258 450,178 7,220 Counterparty BNP BNP BNP BNP BNP BNP BNP BNP Settlement date 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 Unrealized appreciation (depreciation) $ 1,129 96 15 221 240 4 2,306 10 25 Schedule of Investments (Continued) iSHARES® ADAPTIVE CURRENCY HEDGED MSCI EAFE ETF July 31, 2016 Currency purchased Currency sold Counterparty Settlement date NZD USD USD USD USD USD USD CHF HKD JPY NOK USD USD USD USD USD 2,000 91,966 57,944 329,988 56,597 7,283 47,578 1,000 137,000 6,000 1,000 2,067 6,633 52,097 6,561 46,355 USD AUD CHF GBP HKD NOK SEK USD USD USD USD CHF GBP HKD ILS SEK 1,431 121,000 56,000 249,000 439,000 61,000 403,000 1,033 17,663 59 118 2,000 5,000 404,000 25,000 395,000 BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 AUD CHF HKD ILS JPY SEK USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD 121,000 56,000 439,000 25,000 584,000 403,000 89,999 57,495 12,552 186,755 6,742 455,888 1,424 89,444 52,643 23,452 350,053 334,919 3,997 787 418,799 7,457 2,157 2,574 USD 91,966 USD 57,944 USD 56,590 USD 6,558 USD 5,772 USD 47,222 AUD 121,000 CHF 56,000 DKK 84,000 EUR 168,000 ILS 26,000 JPY 46,752,000 NZD 2,000 AUD 118,000 CHF 51,000 DKK 156,000 EUR 313,000 GBP 253,000 HKD 31,000 ILS 3,000 JPY 42,859,000 NOK 63,000 NZD 3,000 SEK 22,000 BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 Unrealized appreciation (depreciation) $ 13 12 164 445 13 53 480 1 3 — — — 12 3 1 117 5,338 (12) (164) (5) (2) (48) (123) (1,955) (285) (74) (1,076) (77) (2,321) (21) (134) (73) (27) (360) (102) (1) — (1,755) (10) (6) (2) (8,633) Net unrealized depreciation $ (3,295) Counterparties: BNP — BNP Paribas SA Currency abbreviations: AUD — Australian Dollar CHF — Swiss Franc DKK — Danish Krone EUR — Euro GBP — British Pound HKD — Hong Kong Dollar ILS — Israeli Shekel JPY — Japanese Yen 26 2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS Schedule of Investments (Continued) iSHARES® ADAPTIVE CURRENCY HEDGED MSCI EAFE ETF July 31, 2016 NOK — Norwegian Krone NZD — New Zealand Dollar SEK — Swedish Krona USD — United States Dollar Schedule 3 — 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 July 31, 2016. The breakdown of the Fund’s investments into major categories is disclosed in the schedule of investments above. Level 1 Investments: Assets: Exchange-traded funds Money market funds Total Level 2 Level 3 Total $2,385,898 1,005 $ — — $ — — $2,385,898 1,005 $2,386,903 $ — $ — $2,386,903 $ — $ 5,338 $ — $ 5,338 — (8,633) $ — $(3,295) $ — $ (3,295) a Derivative financial instruments : Assets: Forward currency contracts Liabilities: Forward currency contracts Total a — (8,633) Shown at the unrealized appreciation (depreciation) on the contracts. See notes to financial statements. SCHEDULES OF INVESTMENTS 27 Schedule of Investments iSHARES® CURRENCY HEDGED MSCI ACWI ETF July 31, 2016 Security Shares Value a b c d INVESTMENT COMPANIES — 100.41% EXCHANGE-TRADED FUNDS — 100.41% iShares MSCI ACWI ETFa 20,451 $1,193,316 1,193,316 TOTAL INVESTMENT COMPANIES (Cost: $1,212,597) Affiliated issuer. See Schedule 1. Affiliated money market fund. The rate quoted is the annualized seven-day yield of the fund at period end. The cost of investments for federal income tax purposes was $1,214,817. Net unrealized depreciation was $20,938, of which $ — represented gross unrealized appreciation on securities and $20,938 represented gross unrealized depreciation on securities. 1,193,316 SHORT-TERM INVESTMENTS — 0.05% MONEY MARKET FUNDS — 0.05% BlackRock Cash Funds: Treasury, SL Agency Shares 0.28%b,c 563 563 563 TOTAL SHORT-TERM INVESTMENTS (Cost: $563) 563 TOTAL INVESTMENTS IN SECURITIES — 100.46% (Cost: $1,213,160)d Other Assets, Less Liabilities — (0.46)% NET ASSETS — 100.00% 1,193,879 (5,434) $1,188,445 Schedule 1 — Affiliates (Note 2) Investments in issuers considered to be affiliates of the Fund (excluding affiliated money market funds) during the year ended July 31, 2016, for purposes of Section 2(a)(3) of the 1940 Act, were as follows: Affiliated issuer Shares held at beginning of year Shares purchased 41,643 1,908 iShares MSCI ACWI ETF Shares sold (23,100) Shares held at end of year Value at end of year Dividend income Net realized gain (loss) 20,451 $ 1,193,316 $ 44,763 $ (48,514) Schedule 2 — Forward Currency Contracts (Note 6) Forward currency contracts outstanding as of July 31, 2016 were as follows: Currency purchased AUD BRL CAD CHF DKK EUR GBP ILS 28 41,000 28,000 47,000 37,000 58,000 117,000 55,000 9,000 Currency sold USD USD USD USD USD USD USD USD 30,836 8,563 35,750 37,707 8,651 129,819 72,445 2,356 Counterparty BNP BNP BNP BNP BNP BNP BNP BNP Settlement date 08/04/2016 08/04/2016 08/04/2016 08/04/2016 08/04/2016 08/04/2016 08/04/2016 08/04/2016 2016 Unrealized appreciation (depreciation) $ 321 67 248 470 66 997 347 4 iSHARES ANNUAL REPORT TO SHAREHOLDERS Schedule of Investments (Continued) iSHARES® CURRENCY HEDGED MSCI ACWI ETF July 31, 2016 Currency purchased INR JPY KRW MXN NOK NZD RUB SEK SGD TRY TWD USD USD USD USD USD USD USD USD USD ZAR EUR HKD JPY KRW NOK USD USD USD USD USD USD USD USD USD USD USD USD 690,000 10,990,000 26,572,000 130,000 20,000 1,000 235,000 87,000 7,000 5,000 672,000 619 38,508 73,796 38,160 6,937 2,495 3,854 11,308 1,711 140,000 1,000 1,000 110,000 114,000 1,000 2,278 917 1,534 1,036 301 5,598 3,985 35,854 160 119 587 645 CAD HKD JPY NOK RUB SEK USD USD USD USD USD USD USD USD USD USD USD 3,000 296,000 134,000 1,000 13,000 9,000 30,432 7,960 37,836 8,661 129,691 2,333 10,126 108,436 23,009 711 5,191 Currency sold USD USD USD USD USD USD USD USD USD USD USD BRL CAD GBP HKD MXN NOK RUB SEK TRY USD USD USD USD USD USD AUD BRL CAD CHF DKK EUR GBP HKD MXN NOK SEK ZAR Counterparty Settlement date 10,290 105,336 23,563 6,908 2,351 709 3,525 10,108 5,184 1,654 21,062 2,000 50,000 55,000 296,000 130,000 21,000 248,000 96,000 5,000 9,808 1,118 129 1,077 102 118 3,000 3,000 2,000 1,000 2,000 5,000 3,000 278,000 3,000 1,000 5,000 9,000 BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP MS BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP 08/04/2016 08/04/2016 08/04/2016 08/04/2016 08/04/2016 08/04/2016 08/04/2016 08/04/2016 08/04/2016 08/04/2016 08/04/2016 08/04/2016 08/04/2016 08/04/2016 08/04/2016 08/04/2016 08/04/2016 08/04/2016 08/04/2016 08/04/2016 08/04/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 USD 2,311 USD 38,165 USD 1,324 USD 120 USD 201 USD 1,063 AUD 41,000 BRL 26,000 CHF 37,000 DKK 58,000 EUR 117,000 ILS 9,000 INR 690,000 JPY 11,124,000 KRW 26,572,000 NZD 1,000 SGD 7,000 BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP 08/04/2016 08/04/2016 08/04/2016 08/04/2016 08/04/2016 08/04/2016 08/04/2016 08/04/2016 08/04/2016 08/04/2016 08/04/2016 08/04/2016 08/04/2016 08/04/2016 08/04/2016 08/04/2016 08/04/2016 Unrealized appreciation (depreciation) $ 20 2,378 204 24 19 13 34 61 37 19 11 2 213 1,004 7 5 6 98 88 38 274 2 — 3 — — — 3 2 3 — 1 12 7 — — 2 1 7,111 SCHEDULES OF INVESTMENTS (14) (12) (11) (1) (4) (11) (725) (53) (342) (56) (1,125) (27) (184) (592) (758) (11) (30) 29 Schedule of Investments (Continued) iSHARES® CURRENCY HEDGED MSCI ACWI ETF July 31, 2016 Currency purchased USD USD CHF USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD ZAR 20,873 9,267 1,000 27,081 8,471 35,754 34,678 7,315 112,172 71,187 2,965 2,357 10,039 596 91,193 22,952 1,179 6,830 2,351 708 3,525 75 10,123 5,182 1,641 20,813 1,225 8,935 1,000 Currency sold Counterparty TWD 672,000 ZAR 140,000 USD 1,034 AUD 36,000 BRL 28,000 CAD 47,000 CHF 34,000 DKK 49,000 EUR 101,000 GBP 54,000 HKD 23,000 ILS 9,000 INR 677,000 INR 40,000 JPY 9,529,000 KRW 25,883,000 KRW 1,313,000 MXN 129,000 NOK 20,000 NZD 1,000 RUB 237,000 RUB 5,000 SEK 87,000 SGD 7,000 TRY 5,000 TWD 663,000 TWD 39,000 ZAR 128,000 USD 72 BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP MS BNP BNP MS BNP BNP BNP BNP MS BNP BNP BNP BNP MS BNP BNP Settlement date 08/04/2016 08/04/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 Unrealized appreciation (depreciation) $ (201) (814) — (248) (62) (252) (465) (59) (900) (319) (1) (4) (57) (1) (2,310) (312) (2) (24) (19) (13) (34) — (61) (38) (19) (71) (3) (223) — (10,468) Net unrealized depreciation $ (3,357) Counterparties: BNP — BNP Paribas SA MS — Morgan Stanley and Co. International PLC Currency abbreviations: AUD — Australian Dollar BRL — Brazilian Real CAD — Canadian Dollar CHF — Swiss Franc DKK — Danish Krone EUR — Euro GBP — British Pound HKD — Hong Kong Dollar ILS — Israeli Shekel INR — Indian Rupee JPY — Japanese Yen KRW — South Korean Won MXN — Mexican Peso NOK — Norwegian Krone NZD — New Zealand Dollar RUB — New Russian Ruble SEK — Swedish Krona SGD — Singapore Dollar TRY — Turkish Lira TWD — Taiwan New Dollar USD — United States Dollar ZAR — South African Rand 30 2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS Schedule of Investments (Continued) iSHARES® CURRENCY HEDGED MSCI ACWI ETF July 31, 2016 Schedule 3 — 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 July 31, 2016. The breakdown of the Fund’s investments into major categories is disclosed in the schedule of investments above. Level 1 Investments: Assets: Exchange-traded funds Money market funds Total Level 2 Level 3 Total $1,193,316 563 $ — — $ — — $1,193,316 563 $1,193,879 $ — $ — $1,193,879 $ — $ 7,111 $ — $ — (10,468) $ — $ (3,357) $ — a Derivative financial instruments : Assets: Forward currency contracts Liabilities: Forward currency contracts Total a — 7,111 (10,468) $ (3,357) Shown at the unrealized appreciation (depreciation) on the contracts. See notes to financial statements. SCHEDULES OF INVESTMENTS 31 Schedule of Investments iSHARES® CURRENCY HEDGED MSCI ACWI ex U.S. ETF July 31, 2016 Security Shares Value a b c d INVESTMENT COMPANIES — 100.94% EXCHANGE-TRADED FUNDS — 100.94% iShares MSCI ACWI ex U.S. ETFa 54,429 $2,208,729 2,208,729 TOTAL INVESTMENT COMPANIES (Cost: $2,385,637) Affiliated issuer. See Schedule 1. Affiliated money market fund. The rate quoted is the annualized seven-day yield of the fund at period end. The cost of investments for federal income tax purposes was $2,400,621. Net unrealized depreciation was $191,029, of which $ — represented gross unrealized appreciation on securities and $191,029 represented gross unrealized depreciation on securities. 2,208,729 SHORT-TERM INVESTMENTS — 0.04% MONEY MARKET FUNDS — 0.04% BlackRock Cash Funds: Treasury, SL Agency Shares 0.28%b,c 863 863 863 TOTAL SHORT-TERM INVESTMENTS (Cost: $863) 863 TOTAL INVESTMENTS IN SECURITIES — 100.98% (Cost: $2,386,500)d Other Assets, Less Liabilities — (0.98)% NET ASSETS — 100.00% 2,209,592 (21,386) $2,188,206 Schedule 1 — Affiliates (Note 2) Investments in issuers considered to be affiliates of the Fund (excluding affiliated money market funds) during the year ended July 31, 2016, for purposes of Section 2(a)(3) of the 1940 Act, were as follows: Affiliated issuer iShares MSCI ACWI ex U.S. ETF Shares held at beginning of year Shares purchased 56,492 4,620 Shares sold (6,683) Shares held at end of year Value at end of year Dividend income Net realized gain (loss) 54,429 $ 2,208,729 $ 56,835 $ (30,172) Schedule 2 — Forward Currency Contracts (Note 6) Forward currency contracts outstanding as of July 31, 2016 were as follows: Currency purchased AUD BRL CAD CHF DKK EUR GBP ILS 32 157,000 112,000 187,000 144,000 216,000 449,000 217,000 37,000 Currency sold USD USD USD USD USD USD USD USD 118,112 34,235 142,241 146,732 32,214 498,158 285,826 9,679 Counterparty BNP BNP BNP BNP BNP BNP BNP BNP Settlement date 08/04/2016 08/04/2016 08/04/2016 08/04/2016 08/04/2016 08/04/2016 08/04/2016 08/04/2016 2016 Unrealized appreciation (depreciation) $ 1,197 285 985 1,852 252 3,862 1,369 25 iSHARES ANNUAL REPORT TO SHAREHOLDERS Schedule of Investments (Continued) iSHARES® CURRENCY HEDGED MSCI ACWI ex U.S. ETF July 31, 2016 Currency purchased INR JPY KRW MXN NOK NZD RUB SEK SGD TRY TWD USD USD USD USD USD USD USD USD USD ZAR EUR GBP HKD JPY KRW NOK SEK SGD TRY USD USD USD USD USD USD USD USD USD USD USD USD USD 2,765,000 40,598,000 106,143,000 518,000 81,000 4,000 930,000 344,000 27,000 19,000 2,699,000 929 150,185 293,871 149,290 27,850 10,100 15,185 44,409 6,502 541,000 3,000 1,000 1,000 412,000 382,000 1,000 1,000 1,000 1,000 9,110 3,973 5,369 4,146 1,505 27,992 18,596 141,738 525 904 237 2,465 2,722 Currency sold USD USD USD USD USD USD USD USD USD USD USD BRL CAD GBP HKD MXN NOK RUB SEK TRY USD USD USD USD USD USD USD USD USD USD AUD BRL CAD CHF DKK EUR GBP HKD ILS MXN NOK SEK ZAR 41,266 388,613 94,105 27,525 9,523 2,837 13,951 39,966 19,996 6,285 84,585 3,000 195,000 219,000 1,158,000 522,000 85,000 977,000 377,000 19,000 37,929 3,354 1,324 129 4,033 343 118 117 745 332 12,000 13,000 7,000 4,000 10,000 25,000 14,000 1,099,000 2,000 17,000 2,000 21,000 38,000 Counterparty BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP MS BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP Settlement date 08/04/2016 08/04/2016 08/04/2016 08/04/2016 08/04/2016 08/04/2016 08/04/2016 08/04/2016 08/04/2016 08/04/2016 08/04/2016 08/04/2016 08/04/2016 08/04/2016 08/04/2016 08/04/2016 08/04/2016 08/04/2016 08/04/2016 08/04/2016 08/04/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 Unrealized appreciation (depreciation) $ 49 9,292 832 96 78 51 134 239 142 70 56 4 832 4,029 29 16 26 387 347 146 1,029 5 — — 10 — — — 1 — 1 11 6 11 — 3 58 26 — 1 — 7 3 27,854 CAD GBP HKD JPY MXN NOK RUB SEK USD USD USD USD SCHEDULES 8,000 2,000 1,158,000 648,000 4,000 4,000 47,000 33,000 116,533 33,372 147,249 32,256 OF USD USD USD USD USD USD USD USD AUD BRL CHF DKK INVESTMENTS 6,164 2,675 149,305 6,405 216 478 727 3,896 157,000 109,000 144,000 216,000 BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP 08/04/2016 08/04/2016 08/04/2016 08/04/2016 08/04/2016 08/04/2016 08/04/2016 08/04/2016 08/04/2016 08/04/2016 08/04/2016 08/04/2016 (36) (28) (45) (54) (3) (4) (15) (39) (2,775) (223) (1,335) (210) 33 Schedule of Investments (Continued) iSHARES® CURRENCY HEDGED MSCI ACWI ex U.S. ETF July 31, 2016 Currency purchased USD USD USD USD USD USD USD USD USD CHF USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD ZAR 497,709 9,591 40,576 402,070 91,911 2,843 20,023 83,833 35,805 2,000 107,577 33,278 142,254 136,673 28,963 440,914 280,795 12,246 9,167 39,852 2,443 362,012 90,934 4,859 26,898 9,405 2,833 13,937 344 40,026 20,732 6,237 82,625 4,963 35,390 6,000 Currency sold Counterparty EUR 449,000 ILS 37,000 INR 2,765,000 JPY 41,246,000 KRW 106,143,000 NZD 4,000 SGD 27,000 TWD 2,699,000 ZAR 541,000 USD 2,067 AUD 143,000 BRL 110,000 CAD 187,000 CHF 134,000 DKK 194,000 EUR 397,000 GBP 213,000 HKD 95,000 ILS 35,000 INR 2,683,000 INR 164,000 JPY 37,826,000 KRW 102,548,000 KRW 5,413,000 MXN 508,000 NOK 80,000 NZD 4,000 RUB 937,000 RUB 23,000 SEK 344,000 SGD 28,000 TRY 19,000 TWD 2,632,000 TWD 158,000 ZAR 507,000 USD 429 BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP MS BNP BNP MS BNP BNP BNP BNP MS BNP BNP BNP BNP MS BNP BNP Settlement date Unrealized appreciation (depreciation) 08/04/2016 08/04/2016 08/04/2016 08/04/2016 08/04/2016 08/04/2016 08/04/2016 08/04/2016 08/04/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 $ Net unrealized depreciation $ (4,310) (112) (738) (2,186) (3,026) (45) (115) (807) (3,153) — (979) (245) (1,001) (1,834) (235) (3,539) (1,258) (4) (16) (159) (3) (9,155) (1,238) (6) (96) (77) (51) (135) (1) (243) (147) (70) (281) (14) (883) — (40,929) (13,075) Counterparties: BNP — BNP Paribas SA MS — Morgan Stanley and Co. International PLC Currency abbreviations: AUD — Australian Dollar BRL — Brazilian Real CAD — Canadian Dollar CHF — Swiss Franc DKK — Danish Krone EUR — Euro GBP — British Pound HKD — Hong Kong Dollar ILS — Israeli Shekel INR — Indian Rupee JPY — Japanese Yen KRW — South Korean Won MXN — Mexican Peso NOK — Norwegian Krone 34 2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS Schedule of Investments (Continued) iSHARES® CURRENCY HEDGED MSCI ACWI ex U.S. ETF July 31, 2016 NZD — New Zealand Dollar RUB — New Russian Ruble SEK — Swedish Krona SGD — Singapore Dollar TRY — Turkish Lira TWD — Taiwan New Dollar USD — United States Dollar ZAR — South African Rand Schedule 3 — 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 July 31, 2016. The breakdown of the Fund’s investments into major categories is disclosed in the schedule of investments above. Level 1 Investments: Assets: Exchange-traded funds Money market funds Total Derivative financial instrumentsa: Assets: Forward currency contracts Liabilities: Forward currency contracts Total a Level 2 Level 3 Total $2,208,729 863 $ — — $ — — $2,208,729 863 $2,209,592 $ — $ — $2,209,592 $ — $ 27,854 $ — $ 27,854 — (40,929) $ — $(13,075) $ — $ (13,075) — (40,929) Shown at the unrealized appreciation (depreciation) on the contracts. See notes to financial statements. SCHEDULES OF INVESTMENTS 35 Schedule of Investments iSHARES® CURRENCY HEDGED MSCI EAFE ETF July 31, 2016 Security Shares Value INVESTMENT COMPANIES — 101.08% EXCHANGE-TRADED FUNDS — 101.08% iShares MSCI EAFE ETFa,b 61,708,842 $3,580,347,013 3,580,347,013 TOTAL INVESTMENT COMPANIES (Cost: $3,853,661,284) 3,580,347,013 a b c d e Affiliated issuer. See Schedule 1. All or a portion of this security represents a security on loan. See Note 1. Affiliated money market fund. The rate quoted is the annualized seven-day yield of the fund at period end. All or a portion of this security represents an investment of securities lending collateral. See Note 1. f The cost of investments for federal income tax purposes was $3,917,016,234. Net unrealized depreciation was $326,324,614, of which $ — represented gross unrealized appreciation on securities and $326,324,614 represented gross unrealized depreciation on securities. SHORT-TERM INVESTMENTS — 0.29% MONEY MARKET FUNDS — 0.29% BlackRock Cash Funds: Institutional, SL Agency Shares 0.57%c,d,e 8,107,050 BlackRock Cash Funds: Prime, SL Agency Shares 0.47%c,d,e 447,950 BlackRock Cash Funds: Treasury, SL Agency Shares 0.28%c,d 1,789,607 8,107,050 447,950 1,789,607 10,344,607 TOTAL SHORT-TERM INVESTMENTS (Cost: $10,344,607) TOTAL INVESTMENTS IN SECURITIES — 101.37% (Cost: $3,864,005,891)f Other Assets, Less Liabilities — (1.37)% NET ASSETS — 100.00% 10,344,607 3,590,691,620 (48,438,088) $3,542,253,532 Schedule 1 — Affiliates (Note 2) Investments in issuers considered to be affiliates of the Fund (excluding affiliated money market funds) during the year ended July 31, 2016, for purposes of Section 2(a)(3) of the 1940 Act, were as follows: Affiliated issuer iShares MSCI EAFE ETF 36 Shares held at beginning of year Shares purchased 44,886,565 35,867,857 Shares held at end of year Value at end of year Dividend income (19,045,580) 61,708,842 $3,580,347,013 $103,396,135 Shares sold 2016 iSHARES ANNUAL REPORT TO Net realized gain (loss) $(38,212,858) SHAREHOLDERS Schedule of Investments (Continued) iSHARES® CURRENCY HEDGED MSCI EAFE ETF July 31, 2016 Schedule 2 — Forward Currency Contracts (Note 6) Forward currency contracts outstanding as of July 31, 2016 were as follows: Currency purchased AUD 200,337,000 AUD 176,275,000 CHF 194,461,000 CHF 153,633,000 DKK 269,490,000 DKK 248,536,000 EUR 544,561,000 EUR 509,233,000 GBP 274,965,000 GBP 245,689,000 ILS 49,348,000 ILS 38,457,000 JPY 53,942,528,000 JPY 43,282,021,000 NOK 107,620,000 NOK 87,608,000 NZD 6,411,000 NZD 3,838,000 SEK 398,219,000 SEK 423,538,000 SGD 28,618,000 SGD 37,454,000 USD 152,266,137 USD 133,977,814 USD 201,211,651 USD 158,966,320 USD 367,664,484 USD 332,844,022 USD 52,197,119 USD 63,511,343 USD 2,790,756 USD 13,840,926 USD 53,671,438 USD 52,345,386 EUR 7,947,000 GBP 1,850,000 JPY 921,979,000 NOK 2,776,000 NOK 2,585,000 NZD 7,000 NZD 137,000 SEK 3,616,000 SEK 11,572,000 SGD 549,000 USD 22,656,119 USD 13,608,096 USD 3,697,698 USD 73,926,942 USD 46,476,029 USD 45,873,803 USD 59,261,031 USD 1,537,667 SCHEDULES OF Currency sold USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD AUD AUD CHF CHF GBP GBP HKD HKD JPY NOK SEK SEK USD USD USD USD USD USD USD USD USD USD AUD CHF DKK EUR GBP HKD HKD ILS INVESTMENTS 150,606,779 132,697,661 198,206,948 156,655,108 40,189,629 37,077,493 604,172,661 564,710,186 362,210,252 323,842,360 12,906,566 10,053,803 517,249,536 413,187,058 12,650,889 10,300,217 4,547,688 2,719,635 46,257,845 49,177,424 21,194,365 27,724,362 200,337,000 176,275,000 194,461,000 153,633,000 274,047,000 247,791,000 404,867,000 492,627,000 282,676,000 116,475,000 455,636,000 445,030,000 8,884,094 2,449,474 9,025,348 328,854 306,349 5,039 98,715 423,033 1,354,417 408,832 29,843,000 13,129,000 24,563,000 66,026,000 34,989,000 355,694,000 459,497,000 5,860,000 Counterparty BNP CITI BNP CITI BNP CITI BNP CITI BNP CITI BNP CITI BNP CITI BNP CITI BNP CITI BNP CITI BNP CITI BNP CITI BNP CITI BNP CITI BNP CITI BNP BNP BNP CITI BNP BNP BNP BNP CITI BNP CITI BNP CITI BNP BNP BNP BNP BNP BNP BNP CITI BNP Settlement date 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 Unrealized appreciation (depreciation) $ 1,639,329 1,262,530 2,433,787 1,860,162 315,169 277,885 4,669,353 4,633,643 1,696,446 1,318,561 34,898 31,506 11,432,102 11,012,745 104,662 83,432 82,098 52,026 281,590 321,016 151,021 211,556 20,028 17,623 570,916 451,050 4,972,728 4,901,176 12,201 14,688 20,296 35,846 421,739 335,198 12,805 281 21,564 194 60 8 67 252 189 543 1,402 37,509 843 8,904 143,886 8,310 10,506 78 37 Schedule of Investments (Continued) iSHARES® CURRENCY HEDGED MSCI EAFE ETF July 31, 2016 Currency purchased USD USD 922,377 6,563,061 AUD AUD CHF CHF GBP GBP HKD HKD JPY NOK NOK SEK SEK USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD AUD CHF CHF DKK EUR GBP HKD ILS JPY SGD USD USD USD USD USD USD USD USD USD USD USD USD 200,337,000 176,275,000 194,461,000 153,633,000 3,973,000 2,102,000 404,867,000 492,627,000 1,890,833,000 10,650,000 190,000 62,542,000 21,492,000 148,753,187 130,893,001 198,786,586 157,079,320 40,243,825 37,036,883 603,507,970 565,943,224 6,411,429 12,791,691 9,958,078 522,898,111 440,448,650 211,667 10,405,344 4,556,799 2,727,916 596,431 21,221,957 27,775,862 4,923,000 4,395,000 4,333,000 6,500,000 13,045,000 7,179,000 12,418,000 1,162,000 1,190,286,000 873,000 126,385,457 122,519,223 170,718,249 144,439,214 33,011,012 34,455,948 471,316,130 525,838,408 349,440,442 300,750,120 12,222,803 11,525,606 Currency sold NOK SEK Counterparty Settlement date 7,769,000 55,917,000 BNP BNP 09/06/2016 09/06/2016 USD 152,266,137 USD 133,977,814 USD 201,211,651 USD 158,966,320 USD 5,311,708 USD 2,786,409 USD 52,201,193 USD 63,514,752 USD 18,682,306 USD 1,272,767 USD 22,598 USD 7,391,150 USD 2,522,693 AUD 200,337,000 AUD 176,275,000 CHF 194,461,000 CHF 153,633,000 DKK 269,490,000 DKK 248,536,000 EUR 544,561,000 EUR 509,233,000 GBP 4,891,000 ILS 49,348,000 ILS 38,457,000 JPY 53,659,852,000 JPY 45,172,854,000 NOK 1,795,000 NOK 87,798,000 NZD 6,411,000 NZD 3,838,000 SEK 5,125,000 SGD 28,618,000 SGD 37,454,000 USD 3,738,477 USD 4,543,011 USD 4,480,197 USD 978,672 USD 14,611,144 USD 9,513,683 USD 1,601,455 USD 305,677 USD 11,681,129 USD 651,225 AUD 168,003,000 AUD 162,944,000 CHF 167,379,000 CHF 141,446,000 DKK 221,106,000 DKK 230,624,000 EUR 424,374,000 EUR 473,515,000 GBP 265,072,000 GBP 227,841,000 HKD 94,818,000 ILS 44,005,000 BNP CITI BNP CITI BNP CITI BNP CITI CITI BNP CITI BNP CITI BNP CITI BNP CITI BNP CITI BNP CITI BNP BNP CITI BNP CITI BNP CITI BNP CITI BNP BNP CITI CITI BNP CITI CITI CITI CITI CITI CITI CITI CITI BNP CITI BNP CITI BNP CITI BNP CITI BNP CITI BNP BNP 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 Unrealized appreciation (depreciation) $ 1,493 17,477 55,945,377 38 2016 (20,029) (17,623) (570,916) (451,050) (53,580) (4,485) (16,274) (18,097) (150,570) (10,487) (79) (81,933) (10,946) (3,492,921) (3,067,190) (1,854,148) (1,435,950) (260,974) (318,495) (5,334,043) (3,400,606) (61,641) (149,773) (127,232) (3,013,068) (2,282,889) (1,083) (825) (72,987) (43,745) (2,523) (123,429) (160,056) (1,280) (188) (1,459) (390) (6,885) (7,310) (197) (783) (1,457) (252) (1,150,664) (1,176,460) (2,290,454) (1,764,247) (266,552) (254,122) (3,782,975) (4,275,485) (1,565,698) (955,039) (3,645) (20,745) iSHARES ANNUAL REPORT TO SHAREHOLDERS Schedule of Investments (Continued) iSHARES® CURRENCY HEDGED MSCI EAFE ETF July 31, 2016 Currency purchased USD USD USD USD USD USD USD USD USD USD USD 9,238,080 443,610,065 400,248,547 12,222,810 9,460,258 4,679,527 2,453,949 44,486,358 48,075,615 21,899,998 25,885,916 Currency sold Counterparty ILS 35,286,000 JPY 46,281,841,000 JPY 41,865,998,000 NOK 103,966,000 NOK 80,498,000 NZD 6,591,000 NZD 3,470,000 SEK 382,338,000 SEK 413,370,000 SGD 29,565,000 SGD 34,988,000 CITI BNP CITI BNP CITI BNP CITI BNP CITI BNP CITI Unrealized appreciation (depreciation) Settlement date 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 $ (20,517) (10,530,136) (10,561,229) (100,610) (81,425) (72,821) (48,046) (269,718) (313,033) (145,853) (203,722) (66,483,044) Net unrealized depreciation $ (10,537,667) Counterparties: BNP — BNP Paribas SA CITI — Citibank N.A. London Currency abbreviations: AUD — Australian Dollar CHF — Swiss Franc DKK — Danish Krone EUR — Euro GBP — British Pound HKD — Hong Kong Dollar ILS — Israeli Shekel JPY — Japanese Yen NOK — Norwegian Krone NZD — New Zealand Dollar SEK — Swedish Krona SGD — Singapore Dollar USD — United States Dollar Schedule 3 — 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 July 31, 2016. The breakdown of the Fund’s investments into major categories is disclosed in the schedule of investments above. Level 1 Investments: Assets: Exchange-traded funds Money market funds Total Level 2 Level 3 Total $3,580,347,013 10,344,607 $ — — $ — — $3,580,347,013 10,344,607 $3,590,691,620 $ — $ — $3,590,691,620 $ — $ 55,945,377 $ — $ 55,945,377 — (66,483,044) $ — $(10,537,667) $ — $ (10,537,667) a Derivative financial instruments : Assets: Forward currency contracts Liabilities: Forward currency contracts Total a — (66,483,044) Shown at the unrealized appreciation (depreciation) on the contracts. See notes to financial statements. SCHEDULES OF INVESTMENTS 39 Schedule of Investments iSHARES® CURRENCY HEDGED MSCI EAFE SMALL-CAP ETF July 31, 2016 Security Shares Value a b c d INVESTMENT COMPANIES — 101.22% EXCHANGE-TRADED FUNDS — 101.22% iShares MSCI EAFE Small-Cap ETFa 166,472 $8,450,119 8,450,119 TOTAL INVESTMENT COMPANIES (Cost: $8,204,753) Affiliated issuer. See Schedule 1. Affiliated money market fund. The rate quoted is the annualized seven-day yield of the fund at period end. The cost of investments for federal income tax purposes was $8,228,169. Net unrealized appreciation was $225,434, of which $245,366 represented gross unrealized appreciation on securities and $19,932 represented gross unrealized depreciation on securities. 8,450,119 SHORT-TERM INVESTMENTS — 0.04% MONEY MARKET FUNDS — 0.04% BlackRock Cash Funds: Treasury, SL Agency Shares 0.28%b,c 3,484 3,484 3,484 TOTAL SHORT-TERM INVESTMENTS (Cost: $3,484) 3,484 TOTAL INVESTMENTS IN SECURITIES — 101.26% (Cost: $8,208,237)d Other Assets, Less Liabilities — (1.26)% NET ASSETS — 100.00% 8,453,603 (105,451) $8,348,152 Schedule 1 — Affiliates (Note 2) Investments in issuers considered to be affiliates of the Fund (excluding affiliated money market funds) during the year ended July 31, 2016, for purposes of Section 2(a)(3) of the 1940 Act, were as follows: Affiliated issuer iShares MSCI EAFE Small-Cap ETF Shares held at beginning of year Shares purchased 49,051 210,825 Shares sold (93,404) Shares held at end of year Value at end of year Dividend income Net realized gain (loss) 166,472 $ 8,450,119 $196,385 $ (130,166) Schedule 2 — Forward Currency Contracts (Note 6) Forward currency contracts outstanding as of July 31, 2016 were as follows: Currency purchased AUD 704,000 CHF 365,000 DKK 844,000 EUR 1,861,000 GBP 1,021,000 ILS 357,000 JPY 286,430,000 40 Currency sold USD USD USD USD USD USD USD 529,895 371,865 125,873 2,064,564 1,344,949 93,425 2,739,073 Counterparty BNP BNP BNP BNP BNP BNP BNP Settlement date 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 2016 Unrealized appreciation (depreciation) $ 5,110 4,735 982 16,112 6,309 198 68,180 iSHARES ANNUAL REPORT TO SHAREHOLDERS Schedule of Investments (Continued) iSHARES® CURRENCY HEDGED MSCI EAFE SMALL-CAP ETF July 31, 2016 Currency purchased Currency sold Counterparty Settlement date NOK NZD SEK SGD USD USD USD USD USD USD USD DKK EUR GBP HKD ILS JPY NOK SEK USD USD USD USD USD USD USD USD USD 1,041,000 147,000 3,571,000 220,000 535,075 4,139 373,532 1,512,429 211,436 126,551 456,336 1,000 7,000 3,000 5,000 2,000 1,162,000 7,000 2,000 54,661 26,949 8,430 151,155 130,174 200,032 6,822 7,124 40,024 USD USD USD USD AUD CHF CHF GBP HKD NOK SEK USD USD USD USD USD USD USD USD AUD CHF DKK EUR GBP HKD ILS NOK SEK 122,386 104,280 414,813 162,929 704,000 4,000 361,000 1,127,000 1,640,000 1,065,000 3,874,000 150 7,825 3,972 645 525 11,375 829 234 72,000 26,000 56,000 135,000 98,000 1,551,000 26,000 60,000 341,000 BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 AUD CHF GBP HKD JPY NOK SEK USD USD USD USD USD USD USD USD CHF USD USD USD USD USD USD USD USD USD USD 704,000 365,000 106,000 1,640,000 3,372,000 24,000 303,000 522,643 373,131 126,055 2,062,535 92,540 2,825,058 104,500 163,159 1,000 505,536 350,863 112,864 1,865,833 1,328,831 12,117 90,098 2,671,908 120,857 107,063 USD 535,075 USD 377,671 USD 141,753 USD 211,445 USD 33,328 USD 2,868 USD 35,774 AUD 704,000 CHF 365,000 DKK 844,000 EUR 1,861,000 ILS 357,000 JPY 289,802,000 NZD 147,000 SGD 220,000 USD 1,034 AUD 672,000 CHF 344,000 DKK 756,000 EUR 1,680,000 GBP 1,008,000 HKD 94,000 ILS 344,000 JPY 279,201,000 NOK 1,028,000 NZD 151,000 BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP BNP 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 08/03/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 09/06/2016 Unrealized appreciation (depreciation) $ 998 1,878 2,526 1,163 70 12 1,060 20,884 50 323 3,586 — 11 — — — 27 1 — 3 74 2 18 403 36 — 12 107 134,870 SCHEDULES OF INVESTMENTS (70) (1,071) (1,466) (59) (280) (24) (363) (12,362) (3,468) (800) (18,142) (1,083) (15,242) (1,658) (933) — (4,599) (4,707) (917) (14,976) (5,954) (4) (164) (67,750) (995) (1,813) 41 Schedule of Investments (Continued) iSHARES® CURRENCY HEDGED MSCI EAFE SMALL-CAP ETF July 31, 2016 Currency purchased USD USD 415,498 162,140 Currency sold SEK SGD 3,571,000 219,000 Counterparty BNP BNP Settlement date Unrealized appreciation (depreciation) 09/06/2016 09/06/2016 $ Net unrealized depreciation $ (2,519) (1,163) (162,582) (27,712) Counterparties: BNP — BNP Paribas SA Currency abbreviations: AUD — Australian Dollar CHF — Swiss Franc DKK — Danish Krone EUR — Euro GBP — British Pound HKD — Hong Kong Dollar ILS — Israeli Shekel JPY — Japanese Yen NOK — Norwegian Krone NZD — New Zealand Dollar SEK — Swedish Krona SGD — Singapore Dollar USD — United States Dollar Schedule 3 — 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 July 31, 2016. The breakdown of the Fund’s investments into major categories is disclosed in the schedule of investments above. Level 1 Investments: Assets: Exchange-traded funds Money market funds Total Level 2 Level 3 Total $8,450,119 3,484 $ — — $ — — $8,450,119 3,484 $8,453,603 $ — $ — $8,453,603 $ — $ 134,870 $ — $ 134,870 — (162,582) $ — $ (27,712) $ — a Derivative financial instruments : Assets: Forward currency contracts Liabilities: Forward currency contracts Total a — (162,582) $ (27,712) Shown at the unrealized appreciation (depreciation) on the contracts. See notes to financial statements. 42 2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS Schedule of Investments iSHARES® MSCI ACWI ETF July 31, 2016 Security Shares Value COMMON STOCKS — 99.07% AUSTRALIA — 2.47% Alumina Ltd. Amcor Ltd./Australia AMP Ltd. APA Group Asciano Ltd. ASX Ltd. Aurizon Holdings Ltd. AusNet Services Australia & New Zealand Banking Group Ltd. Bendigo & Adelaide Bank Ltd. BHP Billiton Ltd. Boral Ltd. Brambles Ltd. Coca-Cola Amatil Ltd. Commonwealth Bank of Australia CSL Ltd. Dexus Property Group Goodman Group GPT Group (The) Incitec Pivot Ltd. James Hardie Industries PLC LendLease Group Macquarie Group Ltd. Medibank Pvt Ltd. Mirvac Group National Australia Bank Ltd. Newcrest Mining Ltd.a Orica Ltd.b Origin Energy Ltd. QBE Insurance Group Ltd. Rio Tinto Ltd. Santos Ltd. Scentre Group Seek Ltd. South32 Ltd.a Stockland Suncorp Group Ltd. Sydney Airport Telstra Corp. Ltd. Transurban Group Treasury Wine Estates Ltd. Vicinity Centres SCHEDULES OF INVESTMENTS 1,004,179 $ 143,792 706,373 210,485 106,122 129,392 161,766 546,924 364,847 58,652 360,426 223,729 558,876 139,535 256,244 87,032 165,550 254,474 220,418 439,417 132,913 100,276 74,261 910,998 416,713 386,914 33,110 118,723 370,024 204,336 73,315 271,975 775,387 44,935 1,247,774 265,353 430,581 438,471 928,499 140,210 81,356 627,671 1,011,275 1,641,522 3,119,266 1,553,397 738,021 4,887,716 639,341 735,771 7,165,482 452,471 5,347,343 1,168,211 5,713,206 977,814 15,064,550 7,805,543 1,229,323 1,458,334 939,836 958,519 2,202,247 1,022,040 4,198,726 2,125,680 696,790 7,804,723 629,131 1,276,831 1,546,802 1,703,702 2,761,635 907,477 3,123,464 570,352 1,740,260 1,016,475 4,395,143 2,519,445 4,071,921 1,338,477 596,704 1,650,632 Security Vocus Communications Ltd. Wesfarmers Ltd. Westfield Corp. Westpac Banking Corp. Woodside Petroleum Ltd. Woolworths Ltd.b Shares 69,648 $ 172,781 303,846 495,090 108,790 209,689 Value 472,718 5,637,662 2,466,419 11,698,953 2,193,655 3,730,948 136,705,953 AUSTRIA — 0.07% Erste Group Bank AG OMV AG Voestalpine AG 58,991 41,250 41,624 1,563,741 1,096,228 1,467,132 4,127,101 BELGIUM — 0.46% Ageas Anheuser-Busch InBev SA/NV Groupe Bruxelles Lambert SA KBC Group NVa UCB SA 59,411 130,548 40,404 38,786 17,974 1,999,403 16,832,113 3,408,966 2,016,169 1,406,358 25,663,009 BRAZIL — 0.39% Ambev SA BM&FBovespa SA-Bolsa de Valores Mercadorias e Futuros BR Malls Participacoes SAa BRF SA CCR SA Cia. de Saneamento Basico do Estado de Sao Paulo Cielo SA Embraer SA Hypermarcas SA Klabin SA Units Natura Cosmeticos SA TIM Participacoes SA Ultrapar Participacoes SA 520,395 3,026,676 520,300 492,520 94,672 189,200 3,072,803 2,142,319 1,590,363 1,096,311 141,900 159,055 189,264 189,200 236,500 141,900 141,900 94,600 1,352,097 1,808,338 868,328 1,606,713 1,243,081 1,461,846 364,803 2,166,868 21,800,546 CANADA — 3.15% Agnico Eagle Mines Ltd. Agrium Inc. Alimentation Couche-Tard Inc. Class B ARC Resources Ltd. Bank of Montreal Bank of Nova Scotia (The) Barrick Gold Corp. 64,328 20,498 3,748,048 1,862,669 63,382 39,732 110,532 175,653 235,081 2,869,092 699,854 7,094,458 8,931,828 5,139,496 43 Schedule of Investments (Continued) iSHARES® MSCI ACWI ETF July 31, 2016 Security BCE Inc. Bombardier Inc. Class Ba Brookfield Asset Management Inc. Class A Cameco Corp. Canadian Imperial Bank of Commerce/Canada Canadian National Railway Co. Canadian Natural Resources Ltd. Canadian Pacific Railway Ltd. Canadian Tire Corp. Ltd. Class A Canadian Utilities Ltd. Class A CCL Industries Inc. Class B Cenovus Energy Inc. Crescent Point Energy Corp. Dollarama Inc. Enbridge Inc. Encana Corp. Fairfax Financial Holdings Ltd. Finning International Inc. First Quantum Minerals Ltd. Fortis Inc./Canada Franco-Nevada Corp. Gildan Activewear Inc. Goldcorp Inc. Husky Energy Inc. Imperial Oil Ltd. Kinross Gold Corp.a Magna International Inc. Class A Manulife Financial Corp. National Bank of Canada Open Text Corp. Pembina Pipeline Corp. Potash Corp. of Saskatchewan Inc. Power Corp. of Canada Restaurant Brands International Inc. Rogers Communications Inc. Class B Royal Bank of Canada Saputo Inc. Shaw Communications Inc. Class B Silver Wheaton Corp. SNC-Lavalin Group Inc. Sun Life Financial Inc. Suncor Energy Inc. 44 Shares Value 40,678 $ 556,721 1,950,535 836,757 212,850 118,011 7,359,692 1,129,387 75,866 121,088 187,493 26,488 7,310 12,023 4,257 128,656 71,896 36,421 162,712 134,805 3,311 28,853 137,643 14,846 44,935 66,220 159,401 91,909 77,731 101,222 59,598 277,196 29,692 21,758 38,786 140,619 141,561 42,097 5,770,598 7,685,636 5,684,961 3,973,251 769,034 370,541 762,901 1,843,933 1,052,486 2,696,280 6,701,631 1,085,428 1,777,335 468,180 1,191,664 492,381 3,468,890 1,945,392 2,851,751 1,082,568 2,394,428 523,943 2,298,822 3,783,665 1,018,005 1,327,454 1,132,603 2,194,392 3,087,301 1,885,899 97,438 208,190 18,920 170,753 105,952 65,274 100,339 263,566 4,309,075 12,706,447 569,174 3,467,305 2,961,505 2,815,584 3,310,137 7,102,265 Security Teck Resources Ltd. Class B TELUS Corp. Thomson Reuters Corp. Toronto-Dominion Bank (The) Tourmaline Oil Corp.a TransCanada Corp. Valeant Pharmaceuticals International Inc.a,b Shares 79,937 $ 22,380 53,543 266,971 47,500 120,837 57,233 Value 1,275,633 749,804 2,258,656 11,646,777 1,218,416 5,609,809 1,276,282 174,220,038 CHILE — 0.16% AES Gener SA Aguas Andinas SA Series A Banco de Chile Banco de Credito e Inversiones Banco Santander Chile Cia. Cervecerias Unidas SA Colbun SA Empresa Nacional de Electricidad SA/Chile Empresas CMPC SA Empresas COPEC SA Enersis Americas SA Enersis Chile SA Itau CorpBanca LATAM Airlines Group SAa SACI Falabella 626,054 1,121,483 5,009,184 11,167 8,538,328 59,125 2,520,144 302,895 678,261 555,377 496,487 438,816 677,277 618,983 511,313 400,158 59,598 3,691,765 3,691,765 41,786,712 110,209 75,215 466,438 839,319 538,045 644,519 429,735 363,102 962,350 552,078 8,563,682 CHINA — 2.68% 58.com Inc. ADRa Agricultural Bank of China Ltd. Class H Alibaba Group Holding Ltd. ADRa,b Baidu Inc.a Bank of China Ltd. Class H Beijing Enterprises Water Group Ltd.b Belle International Holdings Ltd. Brilliance China Automotive Holdings Ltd. China Construction Bank Corp. Class H China Evergrande Groupb China Galaxy Securities Co. Ltd. Class H 2016 10,406 541,216 3,311,000 1,216,032 134,332 35,475 13,717,000 11,079,703 5,661,810 5,638,855 1,892,000 946,000 1,148,373 625,388 1,892,000 2,099,256 10,750,260 1,892,000 7,203,829 1,192,260 709,500 613,502 iSHARES ANNUAL REPORT TO SHAREHOLDERS Schedule of Investments (Continued) iSHARES® MSCI ACWI ETF July 31, 2016 Security Shares b China Gas Holdings Ltd. China Huishan Dairy Holdings Co. Ltd.b China Life Insurance Co. Ltd. Class H China Mengniu Dairy Co. Ltd. China Merchants Bank Co. Ltd. Class H China Mobile Ltd. China Overseas Land & Investment Ltd. China Pacific Insurance Group Co. Ltd. Class H China Petroleum & Chemical Corp. Class H China Shenhua Energy Co. Ltd. Class H China Shipping Container Lines Co. Ltd. Class Ha,b China Taiping Insurance Holdings Co. Ltd.a China Telecom Corp. Ltd. Class H China Unicom Hong Kong Ltd. Chongqing Changan Automobile Co. Ltd. Class B CNOOC Ltd. Country Garden Holdings Co. Ltd.b Ctrip.com International Ltd.a,b Fosun International Ltd. GCL-Poly Energy Holdings Ltd.b GOME Electrical Appliances Holding Ltd.b Great Wall Motor Co. Ltd. Class H Guangdong Investment Ltd. Haier Electronics Group Co. Ltd. Hengan International Group Co. Ltd.b Industrial & Commercial Bank of China Ltd. Class H JD.com Inc. ADRa,b Kunlun Energy Co. Ltd. Lenovo Group Ltd.b SCHEDULES OF 1,892,000 $ Value 2,989,184 1,892,000 743,639 1,892,000 946,000 4,310,667 1,579,928 946,288 946,000 2,024,289 11,660,500 946,000 3,108,654 567,600 2,004,168 4,885,200 3,468,766 946,000 1,806,677 3,346,000 698,525 378,400 741,201 1,892,000 1,892,000 931,377 2,016,358 430,479 2,838,000 713,956 3,393,919 3,322,866 39,259 1,657,000 8,268,000 1,353,135 1,714,441 2,165,218 1,129,399 6,622,000 802,155 1,028,500 1,432,000 1,419,000 1,066,943 2,195,994 2,377,206 236,500 1,987,100 11,378,260 72,369 946,000 1,892,000 6,436,970 1,566,789 714,381 1,223,956 INVESTMENTS Security Shares Netease Inc. New Oriental Education & Technology Group Inc. ADR PetroChina Co. Ltd. Class H Ping An Insurance Group Co. of China Ltd. Class H Qunar Cayman Islands Ltd. ADRa,b Shimao Property Holdings Ltd. Sino Biopharmaceutical Ltd. Sino-Ocean Group Holding Ltd. SouFun Holdings Ltd. ADRa,b TAL Education Group Class A ADRa,b Tencent Holdings Ltd. TravelSky Technology Ltd. Class H Vipshop Holdings Ltd. ADRa,b Want Want China Holdings Ltd.b YY Inc. ADRa,b 10,879 $ Value 2,222,253 31,218 3,784,000 1,375,465 2,564,944 1,419,000 6,619,605 14,190 829,000 946,000 3,547,500 57,706 426,693 1,081,126 631,483 1,499,468 295,455 18,447 946,000 1,110,694 22,735,842 473,000 55,341 2,838,000 8,987 905,776 787,502 1,737,189 352,201 148,291,415 COLOMBIA — 0.02% Ecopetrol SAa Grupo de Inversiones Suramericana SA 747,813 315,647 67,639 841,564 1,157,211 CZECH REPUBLIC — 0.03% CEZ AS Komercni Banka AS O2 Czech Republic AS 55,341 9,510 51,557 1,044,496 373,839 502,522 1,920,857 DENMARK — 0.69% Carlsberg A/S Class B Chr Hansen Holding A/S Danske Bank A/S DSV A/S Novo Nordisk A/S Class B Novozymes A/S Class B Pandora A/S TDC A/S Tryg A/S 21,758 27,434 177,384 99,608 309,342 49,665 14,190 219,640 100,276 2,160,605 1,726,522 4,821,659 4,435,708 17,630,976 2,437,908 1,847,498 1,156,408 1,870,908 38,088,192 EGYPT — 0.03% Commercial International Bank Egypt SAE 138,535 739,014 45 Schedule of Investments (Continued) iSHARES® MSCI ACWI ETF July 31, 2016 Security Shares a Global Telecom Holding SAE Talaat Moustafa Group 890,928 $ 1,105,614 Value 421,387 682,297 1,842,698 FINLAND — 0.26% Fortum OYJ Metso OYJ Nokia OYJ Sampo OYJ Class A UPM-Kymmene OYJ 55,825 66,220 621,995 98,857 197,241 927,031 1,837,194 3,575,108 4,097,973 4,065,010 14,502,316 FRANCE — 3.12% Accor SA Air Liquide SA Airbus Group SE Alstom SAa Arkema SA AXA SA BNP Paribas SA Bouygues SA Capgemini SA Carrefour SA Christian Dior SE Cie. de Saint-Gobain Cie. Generale des Etablissements Michelin Class B Credit Agricole SA Danone SA Edenred Engie SA Essilor International SA Groupe Eurotunnel SE Registered Hermes International Iliad SA Ingenico Group SA Kering L’Oreal SA Legrand SA LVMH Moet Hennessy Louis Vuitton SE Orange SA Pernod Ricard SA Publicis Groupe SA Renault SA Safran SA Sanofi 46 63,604 46,876 87,505 41,219 11,313 276,232 161,294 62,674 62,165 82,441 8,041 92,944 2,661,861 5,000,259 5,149,978 1,014,741 966,139 5,631,185 8,000,183 1,854,455 5,974,904 2,065,510 1,454,432 3,939,124 41,624 239,811 87,195 63,049 193,930 54,868 119,196 3,311 6,149 4,730 17,501 37,454 40,205 4,256,172 2,123,897 6,716,203 1,430,185 3,193,298 7,028,349 1,238,806 1,424,732 1,195,414 518,512 3,325,028 7,130,573 2,218,740 44,045 295,072 48,246 25,542 29,326 42,570 172,172 7,555,463 4,517,213 5,513,804 1,902,253 2,566,116 2,894,319 14,661,268 Security Schneider Electric SE SES SA SFR Group SA Societe Generale SA Suez Technip SA Total SA Unibail-Rodamco SE Veolia Environnement SA Vinci SA Vivendi SA Wendel SA Zodiac Aerospace Shares 82,441 $ 96,965 15,609 110,682 52,540 40,205 320,694 18,259 58,894 69,256 173,392 8,041 53,449 Value 5,394,941 2,124,709 368,819 3,781,799 852,798 2,244,591 15,334,430 5,025,924 1,307,945 5,257,779 3,409,656 858,452 1,204,353 172,289,312 GERMANY — 2.83% adidas AG Allianz SE Registered BASF SE Bayer AG Registered Bayerische Motoren Werke AG Beiersdorf AG Commerzbank AG Continental AG Daimler AG Registered Deutsche Bank AG Registereda Deutsche Boerse AG Deutsche Post AG Registered Deutsche Telekom AG Registered Deutsche Wohnen AG Bearer E.ON SE Fresenius Medical Care AG & Co. KGaA Fresenius SE & Co. KGaA GEA Group AG HeidelbergCement AG Henkel AG & Co. KGaA Infineon Technologies AG Lanxess AG Linde AG MAN SE Merck KGaA METRO AG Muenchener RueckversicherungsGesellschaft AG in Muenchen Registered 2016 35,002 66,430 138,589 122,034 56,287 19,393 209,066 13,244 128,656 200,552 44,407 164,166 477,730 29,799 303,193 5,743,942 9,530,815 10,888,700 13,130,622 4,849,756 1,821,427 1,378,415 2,776,896 8,750,151 2,696,815 3,729,824 4,899,716 8,133,527 1,115,479 3,252,127 55,814 53,922 25,069 27,092 20,812 197,272 27,907 37,454 24,596 19,393 51,581 5,102,972 4,027,324 1,338,175 2,294,592 2,259,811 3,264,873 1,318,497 5,390,336 2,579,371 2,141,732 1,660,044 31,802 5,305,940 iSHARES ANNUAL REPORT TO SHAREHOLDERS Schedule of Investments (Continued) iSHARES® MSCI ACWI ETF July 31, 2016 Security Shares Osram Licht AG ProSiebenSat.1 Media SE Registered RWE AGa SAP SE Siemens AG Registered ThyssenKrupp AG Vonovia SE Zalando SEa,b,c 44,935 $ 39,259 65,274 142,503 121,088 93,745 75,207 18,920 Value 2,336,057 1,795,128 1,160,949 12,494,951 13,150,701 2,149,023 2,981,354 717,761 156,167,803 GREECE — 0.03% Alpha Bank AEa Eurobank Ergasias SAa JUMBO SA National Bank of Greece SAa Piraeus Bank SAa 252,928 452,998 28,304 1,389,622 1,568,450 500,621 258,348 334,551 313,897 263,088 1,670,505 HONG KONG — 1.17% AIA Group Ltd.b Bank of East Asia Ltd. (The)b Cheung Kong Property Holdings Ltd. CK Hutchison Holdings Ltd. CLP Holdings Ltd. Galaxy Entertainment Group Ltd.b Hang Lung Properties Ltd.b Hang Seng Bank Ltd.b Henderson Land Development Co. Ltd. Hong Kong & China Gas Co. Ltd.b Hong Kong Exchanges and Clearing Ltd.b Li & Fung Ltd.b Link REIT New World Development Co. Ltd. Sands China Ltd.b Swire Pacific Ltd. Class Ab Techtronic Industries Co. Ltd. WH Group Ltd.b,c Wharf Holdings Ltd. (The) 1,797,400 473,000 11,129,591 1,953,576 709,516 586,016 236,500 946,000 946,000 165,800 5,065,392 6,857,036 2,462,542 3,145,226 2,048,054 2,959,207 690,602 1,381,789 4,111,600 2,564,161 165,300 1,898,000 473,000 1,601,666 378,400 473,000 236,500 946,000 473,200 4,079,272 949,006 3,529,237 1,861,742 1,443,391 5,650,436 1,001,170 744,858 3,259,369 89,181 2,172,648 2,172,648 SCHEDULES OF INVESTMENTS INDIA — 0.70% Dr. Reddy’s Laboratories Ltd. ADR ICICI Bank Ltd. ADR Infosys Ltd. ADR Larsen & Toubro Ltd. GDRb,d Reliance Industries Ltd. GDRc Tata Motors Ltd. ADR Wipro Ltd. ADRb Shares 97,608 $ 541,585 549,779 194,403 250,353 113,582 410,091 Value 4,260,589 4,105,214 9,032,869 4,519,870 7,548,143 4,296,807 4,650,432 38,413,924 INDONESIA — 0.30% Astra International Tbk PT Bank Central Asia Tbk PT Bank Mandiri Persero Tbk PT Bank Negara Indonesia Persero Tbk PT Bank Rakyat Indonesia Persero Tbk PT Charoen Pokphand Indonesia Tbk PT Indocement Tunggal Prakarsa Tbk PT Indofood Sukses Makmur Tbk PT Kalbe Farma Tbk PT Perusahaan Gas Negara Persero Tbk PT Semen Indonesia Persero Tbk PT Telekomunikasi Indonesia Persero Tbk PT Unilever Indonesia Tbk PT United Tractors Tbk PT 4,257,000 3,736,700 1,182,957 2,510,618 4,122,252 912,155 1,987,788 811,900 1,892,000 1,664,717 2,150,945 615,799 359,400 1,301,400 5,344,900 468,508 827,129 683,491 1,655,500 709,500 415,818 507,811 5,676,000 236,500 493,606 1,832,995 813,400 593,526 16,780,119 64,814,866 HUNGARY — 0.04% OTP Bank PLC Security IRELAND — 0.12% Bank of Irelanda CRH PLC Kerry Group PLC Class A Paddy Power Betfair PLC 4,151,521 92,708 22,704 8,987 858,852 2,848,354 1,943,510 1,055,220 6,705,936 ISRAEL — 0.25% Israel Chemicals Ltd. Mizrahi Tefahot Bank Ltd. Mobileye NVa,b Nice Ltd. Teva Pharmaceutical Industries Ltd. 160,487 69,058 23,177 41,151 646,765 843,249 1,110,410 2,823,369 151,833 8,178,442 13,602,235 47 Schedule of Investments (Continued) iSHARES® MSCI ACWI ETF July 31, 2016 Security ITALY — 0.66% Assicurazioni Generali SpA Atlantia SpA CNH Industrial NV Enel SpA Eni SpA Ferrari NV Fiat Chrysler Automobiles NVb Intesa Sanpaolo SpA Leonardo-Finmeccanica SpAa Luxottica Group SpA Mediobanca SpA Snam SpA Telecom Italia SpA/Milanoa,b Tenaris SA UniCredit SpA Unione di Banche Italiane SpA Shares 108,994 $ 112,574 262,988 795,597 341,033 20,812 165,999 1,999,371 218,940 35,948 283,327 703,351 1,910,447 34,529 690,298 392,117 Value 1,435,777 2,813,551 1,876,272 3,663,689 5,217,009 941,161 1,069,220 4,404,521 2,499,712 1,745,033 1,984,943 4,070,255 1,631,110 461,800 1,692,062 1,203,203 36,709,318 JAPAN — 7.75% Acom Co. Ltd.a Aeon Co. Ltd. Aisin Seiki Co. Ltd. Ajinomoto Co. Inc. Asahi Group Holdings Ltd. ASICS Corp. Astellas Pharma Inc. Bandai Namco Holdings Inc. Bridgestone Corp. Canon Inc. Casio Computer Co. Ltd.b Central Japan Railway Co. Chugoku Electric Power Co. Inc. (The) Concordia Financial Group Ltd.a Dai-ichi Life Insurance Co. Ltd. (The) Daiichi Sankyo Co. Ltd. Daikin Industries Ltd. Daiwa House Industry Co. Ltd. Daiwa Securities Group Inc. Denso Corp. East Japan Railway Co. Eisai Co. Ltd. FANUC Corp. Fast Retailing Co. Ltd. 48 283,800 236,500 94,600 47,300 141,900 141,900 473,000 94,600 144,300 189,200 94,600 47,300 1,356,901 3,419,944 4,379,929 1,217,749 4,840,537 2,634,880 7,945,255 2,526,420 5,070,247 5,418,373 1,363,362 8,870,625 141,900 756,800 1,790,279 3,280,193 189,200 189,200 47,300 47,300 473,000 141,900 94,600 47,300 47,300 9,000 2,503,344 4,543,311 4,159,317 1,337,978 2,701,341 5,602,063 8,755,242 2,789,493 7,996,024 2,935,747 Security Fuji Heavy Industries Ltd. FUJIFILM Holdings Corp. Fujitsu Ltd. Hitachi Ltd. Honda Motor Co. Ltd. Hoya Corp. ITOCHU Corp. Japan Tobacco Inc. JFE Holdings Inc. JTEKT Corp. JX Holdings Inc. Kakaku.com Inc. Kansai Electric Power Co. Inc. (The)a Kao Corp. KDDI Corp. Keikyu Corp. Keyence Corp. Kintetsu Group Holdings Co. Ltd. Kobe Steel Ltd. Komatsu Ltd. Kyocera Corp. Kyushu Electric Power Co. Inc. Marubeni Corp. Mazda Motor Corp. Mitsubishi Chemical Holdings Corp. Mitsubishi Corp. Mitsubishi Electric Corp. Mitsubishi Heavy Industries Ltd. Mitsubishi UFJ Financial Group Inc. Mitsui & Co. Ltd. Mitsui Fudosan Co. Ltd. Mizuho Financial Group Inc. MS&AD Insurance Group Holdings Inc. Murata Manufacturing Co. Ltd. NEC Corp. Nidec Corp. Nippon Steel & Sumitomo Metal Corp. Nippon Telegraph & Telephone Corp. Nissan Motor Co. Ltd. 2016 Shares Value 92,900 $ 141,900 473,000 946,000 283,800 94,600 236,500 189,200 94,600 71,600 542,680 94,600 3,639,494 5,163,147 1,998,429 4,398,390 7,868,641 3,392,253 2,705,725 7,430,648 1,252,134 1,016,520 2,054,014 1,977,199 94,600 141,900 283,800 473,000 10,000 946,000 946,000 189,200 94,600 189,200 473,000 94,600 882,816 7,688,644 8,709,089 4,818,383 7,115,188 4,107,626 830,756 3,728,247 4,514,696 1,783,356 2,220,887 1,428,438 662,200 236,500 473,000 946,000 3,633,910 4,104,164 5,619,139 4,090,087 1,986,600 331,100 165,000 3,642,100 10,118,605 3,904,321 3,628,116 5,938,380 94,600 47,300 592,000 47,600 2,774,724 5,919,135 1,640,513 4,382,163 142,234 2,706,311 141,900 473,000 6,758,198 4,670,693 iSHARES ANNUAL REPORT TO SHAREHOLDERS Schedule of Investments (Continued) iSHARES® MSCI ACWI ETF July 31, 2016 Security Shares Nitto Denko Corp. Nomura Holdings Inc. Nomura Real Estate Master Fund Inc. NTT DOCOMO Inc. Olympus Corp. Ono Pharmaceutical Co. Ltd. ORIX Corp. Panasonic Corp. Rakuten Inc. Resona Holdings Inc. SBI Holdings Inc./Japan Secom Co. Ltd. Seven & I Holdings Co. Ltd. Seven Bank Ltd. Shin-Etsu Chemical Co. Ltd. Shionogi & Co. Ltd. Shiseido Co. Ltd. SoftBank Group Corp. Sony Corp. Sumitomo Chemical Co. Ltd. Sumitomo Corp. Sumitomo Electric Industries Ltd. Sumitomo Mitsui Financial Group Inc. Sumitomo Mitsui Trust Holdings Inc. Suruga Bank Ltd. Suzuki Motor Corp. T&D Holdings Inc. Takeda Pharmaceutical Co. Ltd. TDK Corp. Terumo Corp. Tohoku Electric Power Co. Inc. Tokio Marine Holdings Inc. Tokyo Electric Power Co. Holdings Inc.a Tokyo Electron Ltd. Tokyo Gas Co. Ltd. Toray Industries Inc. Toshiba Corp.a,b Toyota Motor Corp. USS Co. Ltd. Value 47,300 $ 595,200 3,189,640 2,724,963 1,892 260,320 47,300 94,600 354,200 378,400 236,500 473,000 331,130 47,300 189,200 614,900 94,600 47,300 47,300 141,900 236,500 473,000 354,200 354,200 3,132,872 6,983,947 1,652,281 3,418,098 5,059,753 3,732,862 2,712,648 1,915,353 3,647,810 3,581,019 7,943,871 2,123,965 6,520,509 2,469,191 1,338,901 7,896,333 7,573,723 2,123,042 3,746,429 4,957,798 189,200 6,106,978 946,080 94,600 94,600 189,200 141,900 47,300 94,600 189,200 189,200 3,203,296 2,183,965 2,942,721 1,968,891 6,352,512 2,949,183 4,093,780 2,440,576 7,458,340 331,100 47,300 473,000 473,000 946,000 425,700 189,200 1,305,210 4,167,163 2,026,121 4,341,622 2,484,883 24,482,371 3,236,255 428,240,608 MALAYSIA — 0.29% AirAsia Bhd Alliance Financial Group Bhd SCHEDULES OF INVESTMENTS 1,229,800 898,700 885,226 878,719 Security CIMB Group Holdings Bhd DiGi.Com Bhdb Genting Bhd Genting Plantations Bhd Hong Leong Bank Bhd Hong Leong Financial Group Bhd IHH Healthcare Bhdb IJM Corp. Bhd IOI Properties Group Bhd Lafarge Malaysia Bhd Malaysia Airports Holdings Bhd Maxis Bhdb Petronas Gas Bhd PPB Group Bhd Public Bank Bhd RHB Bank Bhd Sapurakencana Petroleum Bhdb Telekom Malaysia Bhdb Tenaga Nasional Bhd YTL Power International Bhd Shares 718,400 $ 756,800 189,600 189,200 118,900 236,500 1,324,400 378,420 520,315 283,800 283,800 475,000 141,900 189,200 365,470 190,938 1,702,800 614,900 189,200 944,490 Value 774,788 922,179 382,880 489,907 383,237 884,297 2,127,890 315,156 301,669 554,283 414,841 702,494 773,208 743,692 1,750,808 238,761 598,208 1,031,757 668,394 331,807 16,154,201 MEXICO — 0.41% Alfa SAB de CV America Movil SAB de CV Cemex SAB de CV CPOa Fomento Economico Mexicano SAB de CV Gentera SAB de CV Grupo Financiero Banorte SAB de CV Grupo Mexico SAB de CV Series B Grupo Televisa SAB Mexichem SAB de CV Wal-Mart de Mexico SAB de CV 818,900 4,824,600 3,263,737 1,341,323 2,775,785 2,489,162 567,600 1,040,600 5,081,719 1,934,941 425,700 2,333,122 614,928 378,400 283,847 1,135,200 1,485,076 2,010,069 618,997 2,596,145 22,666,339 NETHERLANDS — 1.02% Aegon NV Akzo Nobel NV Altice NV Class Aa,b ASML Holding NV Gemalto NVb Heineken NV ING Groep NV Koninklijke Ahold Delhaize NV 201,620 61,720 71,896 51,605 15,136 45,408 538,784 171,615 822,033 4,000,308 1,067,280 5,709,562 998,117 4,287,654 6,024,955 4,099,167 49 Schedule of Investments (Continued) iSHARES® MSCI ACWI ETF July 31, 2016 Security Koninklijke DSM NV Koninklijke KPN NV Koninklijke Philips NV NXP Semiconductors NVa RELX NV Unilever NV CVA Wolters Kluwer NV NEW ZEALAND — 0.03% Auckland International Airport Ltd. Shares 23,815 $ 653,213 186,007 31,218 377,524 200,167 47,773 269,899 Value 147,576 445,802 101,283 191,565 14,659 mBank SA Polski Koncern Naftowy ORLEN SA Powszechna Kasa Oszczednosci Bank Polski SAa Synthos SAa 56,387,076 PORTUGAL — 0.08% Banco Espirito Santo SA Registereda EDP – Energias de Portugal SA Jeronimo Martins SGPS SA 1,436,525 1,626,807 4,144,213 1,596,882 3,204,539 477,385 11,049,826 PERU — 0.05% Credicorp Ltd. 15,788 Shares a 1,524,899 2,149,731 4,965,018 2,625,121 6,828,542 9,274,680 2,010,009 1,436,525 NORWAY — 0.20% DNB ASA Orkla ASA Statoil ASA Telenor ASA Yara International ASA Security 2,531,290 7,568 $ 364,900 1,202,000 898,700 1,277,100 664,449 714,232 374,540 179,857 604,165 1,154,543 308,278 1,070,801 1,354,003 1,716,219 2,027,334 362,501 9,510 122,980 2,330,825 422,308 571,696 1,444,706 11,036,554 POLAND — 0.13% Alior Bank SAa Bank Handlowy w Warszawie SA Bank Millennium SAa Bank Pekao SA CCC SA Cyfrowy Polsat SAa Eurocash SA KGHM Polska Miedz SA 50 87,838 16,730 629,563 17,501 10,406 125,345 30,272 17,501 1,138,850 295,384 740,282 554,236 474,882 758,506 406,476 352,941 590,285 17,028 273,016 163,108 763,609 996,655 776,352 7,357,865 1 604,494 127,710 — 2,073,894 2,138,606 4,212,500 QATAR — 0.11% Ezdan Holding Group QSC Masraf Al Rayan QSC Ooredoo QSC Qatar Insurance Co. SAQ Qatar National Bank SAQ Vodafone Qatar QSC 156,090 158,928 30,745 34,420 38,623 75,680 842,699 1,592,968 802,069 747,655 1,607,899 241,283 5,834,573 2,531,290 PHILIPPINES — 0.20% Aboitiz Equity Ventures Inc. Aboitiz Power Corp. Alliance Global Group Inc. Ayala Land Inc. Bank of the Philippine Islands BDO Unibank Inc. Jollibee Foods Corp. Metropolitan Bank & Trust Co. Philippine Long Distance Telephone Co. Security Bank Corp. SM Prime Holdings Inc. Value RUSSIA — 0.35% Lukoil PJSC ADR Magnit PJSC GDRd MMC Norilsk Nickel PJSC ADR Mobile TeleSystems PJSC ADR Novatek OJSC GDRd Surgutneftegas OJSC ADR Tatneft PJSC ADR 100,749 92,235 52,143 292,238 37,367 211,666 112,068 4,378,350 3,539,057 767,545 2,597,996 3,729,226 998,090 3,165,921 19,176,185 SINGAPORE — 0.41% Ascendas REITb CapitaLand Ltd.b CapitaLand Mall Trustb Genting Singapore PLC Global Logistic Properties Ltd.b Hutchison Port Holdings Trustb Keppel Corp. Ltd.b Noble Group Ltd.a,b Oversea-Chinese Banking Corp. Ltd.b Singapore Press Holdings Ltd.b Singapore Telecommunications Ltd.b 1,524,199 1,844,700 1,419,000 1,419,000 709,500 1,419,000 430,100 4,584,500 2,780,350 4,353,882 2,260,934 829,361 1,011,609 674,025 1,681,204 552,966 425,700 236,000 1,560,900 2,725,798 664,195 4,857,838 22,392,162 2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS Schedule of Investments (Continued) iSHARES® MSCI ACWI ETF July 31, 2016 Security Shares SOUTH AFRICA — 0.75% Brait SEa,b Capitec Bank Holdings Ltd.b FirstRand Ltd. Fortress Income Fund Ltd. Gold Fields Ltd. Growthpoint Properties Ltd. MMI Holdings Ltd./South Africa Mr. Price Group Ltd. MTN Group Ltd. Naspers Ltd. Class N PSG Group Ltd. Redefine Properties Ltd. Sanlam Ltd. Sappi Ltd.a Sasol Ltd. Standard Bank Group Ltd. Woolworths Holdings Ltd./ South Africa Value 148,522 $ 30,272 1,130,943 293,260 83,721 577,533 587,466 99,330 254,483 73,315 66,220 1,199,055 862,279 343,398 94,687 396,875 1,336,623 1,344,039 3,963,970 772,126 517,738 1,097,742 981,441 1,640,095 2,575,119 11,527,849 946,894 1,037,053 4,067,882 1,749,316 2,518,566 3,966,460 216,634 1,397,503 41,440,416 SOUTH KOREA — 1.53% AmorePacific Corp. AmorePacific Group BGF retail Co. Ltd. Celltrion Inc.a,b CJ CheilJedang Corp. CJ Corp. CJ E&M Corp. Coway Co. Ltd. Doosan Heavy Industries & Construction Co. Ltd. GS Engineering & Construction Corp.a,b GS Retail Co. Ltd. Hana Financial Group Inc. Hankook Tire Co. Ltd. Hanmi Pharm Co. Ltd. Hanmi Science Co. Ltd. Hanssem Co. Ltd.b Hanwha Corp. Hyundai Development Co. – Engineering & Construction Hyundai Engineering & Construction Co. Ltd. Hyundai Glovis Co. Ltd. SCHEDULES OF INVESTMENTS 8,041 11,825 4,730 18,536 3,311 1,892 4,730 7,878 2,785,259 1,525,432 842,419 1,722,624 1,163,129 338,656 300,230 602,727 32,637 763,371 40,205 7,568 36,714 10,879 1,452 4,356 2,838 48,246 1,030,115 340,514 902,978 526,395 792,012 559,982 435,777 1,533,328 Security Shares Hyundai Heavy Industries Co. Ltd.a,b Hyundai Marine & Fire Insurance Co. Ltd. Hyundai Mobis Co. Ltd. Hyundai Motor Co. Hyundai Steel Co. KB Financial Group Inc. KCC Corp. Kia Motors Corp. Korea Aerospace Industries Ltd. Class A Korea Electric Power Corp. Korea Zinc Co. Ltd. KT Corp. KT&G Corp. LG Chem Ltd. LG Corp. LG Display Co. Ltd. LG Electronics Inc. LG Household & Health Care Ltd. Lotte Chemical Corp. Lotte Confectionery Co. Ltd.b Lotte Shopping Co. Ltd. Mirae Asset Securities Co. Ltd. NAVER Corp. NCsoft Corp. OCI Co. Ltd.a,b Orion Corp./Republic of Korea Ottogi Corp. POSCO Samsung C&T Corp. Samsung Electronics Co. Ltd. Samsung Fire & Marine Insurance Co. Ltd. Samsung SDI Co. Ltd. Shinhan Financial Group Co. Ltd. SK Holdings Co. Ltd. SK Hynix Inc. SK Innovation Co. Ltd. SK Telecom Co. Ltd. Woori Bank 14,190 $ 1,589,827 Value 8,682 8,514 21,285 7,095 54,315 2,838 32,637 234,848 1,938,196 2,508,253 320,499 1,706,814 999,501 1,228,094 28,853 37,367 1,892 49,140 16,218 6,622 11,806 32,755 17,028 946 7,568 4,405 1,892 14,663 3,904 2,365 14,190 485 473 9,462 8,984 15,136 2,076,108 2,044,902 859,731 1,392,845 1,751,889 1,439,501 669,268 906,490 813,282 851,286 2,050,518 745,211 325,989 347,545 2,474,526 529,942 1,178,119 398,773 329,789 1,913,264 1,086,758 20,795,701 4,730 7,685 55,935 7,095 84,667 20,339 5,203 44,935 1,125,336 723,803 1,994,914 1,320,633 2,600,138 2,650,979 1,068,330 405,163 84,814,111 8,296 328,093 10,860 3,784 356,781 567,524 SPAIN — 0.93% ACS Actividades de Construccion y Servicios SA Amadeus IT Holding SA Class A 85,884 69,058 2,463,421 3,243,028 51 Schedule of Investments (Continued) iSHARES® MSCI ACWI ETF July 31, 2016 Security Banco Bilbao Vizcaya Argentaria SA Banco de Sabadell SA Banco Popular Espanol SAb Banco Santander SA Bankia SA Distribuidora Internacional de Alimentacion SA Ferrovial SA Grifols SA Iberdrola SA Iberdrola SA Newa Industria de Diseno Textil SA International Consolidated Airlines Group SA Red Electrica Corp. SA Repsol SA Telefonica SA Shares Value 880,066 $ 1,321,548 1,223,666 1,736,860 1,160,742 5,142,101 1,807,376 1,713,193 7,368,876 890,428 142,373 89,750 94,974 855,184 19,848 210,958 888,544 1,858,221 2,082,675 5,876,525 136,387 7,298,866 285,219 51,216 259,297 484,825 1,539,554 1,173,510 3,269,288 4,753,622 51,505,615 SWEDEN — 0.87% Atlas Copco AB Class A Boliden AB Electrolux AB Class B Hennes & Mauritz AB Class B Hexagon AB Class B Investor AB Class B Lundin Petroleum ABa,b Millicom International Cellular SA SDR Nordea Bank AB Sandvik AB Skandinaviska Enskilda Banken AB Class A SKF AB Class B Svenska Cellulosa AB SCA Class B Svenska Handelsbanken AB Class A Swedbank AB Class A Telefonaktiebolaget LM Ericsson Class B Telia Co. AB Volvo AB Class B 246,433 105,006 23,177 162,239 28,819 69,757 61,490 6,939,538 2,315,856 629,577 4,914,663 1,139,805 2,409,868 1,020,342 9,460 521,720 291,368 506,623 4,661,817 3,131,043 52 Shares Adecco Group AG Registered Aryzta AG Barry Callebaut AG Registered Cie. Financiere Richemont SA Class A Registered Credit Suisse Group AG Registered Galenica AG Registered Geberit AG Registered Givaudan SA Registered Julius Baer Group Ltd. Kuehne + Nagel International AG Registered LafargeHolcim Ltd. Registered Lonza Group AG Registered Nestle SA Registered Novartis AG Registered Roche Holding AG Schindler Holding AG Participation Certificates Schindler Holding AG Registered SGS SA Registered Sonova Holding AG Registered Swatch Group AG (The) Bearerb Swiss Prime Site AG Registered Swiss Re AG Swisscom AG Registered Syngenta AG Registered UBS Group AG Zurich Insurance Group AG 23,177 $ 14,190 1,419 1,275,820 535,181 1,861,754 Value 89,082 5,433,684 239,071 1,419 5,676 2,365 63,858 2,758,179 1,835,325 2,196,517 4,874,624 2,628,456 3,784 75,680 24,123 454,553 323,532 101,222 532,489 3,611,528 4,560,269 36,544,848 26,881,494 25,922,133 3,311 3,784 946 4,257 5,676 9,386 64,885 3,311 15,852 504,174 20,838 636,882 732,955 2,099,612 584,955 1,492,340 864,839 5,461,633 1,634,516 6,250,915 6,964,378 5,021,646 165,334,748 231,211 60,450 2,033,467 960,581 23,650 705,337 368,467 137,643 4,447,477 2,900,158 535,909 359,002 346,998 4,006,726 1,642,842 3,708,512 48,074,232 SWITZERLAND — 2.99% ABB Ltd. Registered Actelion Ltd. Registered Security 344,464 26,961 7,342,292 4,795,484 TAIWAN — 1.28% Acer Inc. Advanced Semiconductor Engineering Inc. Chang Hwa Commercial Bank Ltd. China Airlines Ltd. China Development Financial Holding Corp. China Steel Corp. Chunghwa Telecom Co. Ltd. CTBC Financial Holding Co. Ltd. E.Sun Financial Holding Co. Ltd. EVA Airways Corp.a Far EasTone Telecommunications Co. Ltd. 2016 2,365,000 1,126,085 2,365,524 2,235,276 3,311,000 2,815,835 1,200,858 974,952 1,932,000 1,460,305 1,419,140 1,374,984 754,418 2,376,581 469,640 1,008,669 5,045,653 758,065 420,657 1,131,599 473,000 1,086,079 iSHARES ANNUAL REPORT TO SHAREHOLDERS Schedule of Investments (Continued) iSHARES® MSCI ACWI ETF July 31, 2016 Security Shares First Financial Holding Co. Ltd. Formosa Plastics Corp. Formosa Taffeta Co. Ltd. Highwealth Construction Corp. Hon Hai Precision Industry Co. Ltd. Hua Nan Financial Holdings Co. Ltd. Inotera Memories Inc.a MediaTek Inc. Mega Financial Holding Co. Ltd. Nan Ya Plastics Corp. Phison Electronics Corp. Siliconware Precision Industries Co. Ltd. SinoPac Financial Holdings Co. Ltd. Taishin Financial Holding Co. Ltd. Taiwan Business Banka Taiwan Cooperative Financial Holding Co. Ltd. Taiwan Mobile Co. Ltd. Taiwan Semiconductor Manufacturing Co. Ltd. Uni-President Enterprises Corp. United Microelectronics Corp. 947,409 $ 491,160 473,000 473,000 Value 525,300 1,197,013 448,211 720,842 2,278,091 6,272,725 2,242,166 946,000 473,000 1,021,287 478,830 473,000 1,222,119 770,479 3,607,916 799,805 905,972 3,911,662 874,454 1,314,845 1,133,475 966,043 6,624,753 365,717 387,349 1,745,268 3,360,451 473,000 1,573,748 1,629,859 4,257,000 1,150,600 5,203,000 23,003,242 2,350,002 1,939,533 2,317,700 1,497,222 4,257,000 851,400 1,208,000 1,026,667 603,778 1,994,258 1,797,400 1,371,700 542,600 1,939,333 94,623 1,444,938 1,033,796 1,335,858 1,851,359 536,550 11,324,426 TURKEY — 0.14% Akbank TAS Anadolu Efes Biracilik ve Malt Sanayii AS SCHEDULES OF INVESTMENTS Shares Arcelik AS BIM Birlesik Magazalar AS Coca-Cola Icecek AS Emlak Konut Gayrimenkul Yatirim Ortakligi AS TAV Havalimanlari Holding AS Turk Hava Yollari AOa,b Turkiye Garanti Bankasi AS Turkiye Halk Bankasi AS Turkiye Sise ve Cam Fabrikalari AS Turkiye Vakiflar Bankasi Tao Class Db 93,745 $ 39,112 39,335 Value 640,193 722,031 486,993 863,225 97,795 364,297 449,350 98,384 770,801 357,801 629,873 1,101,528 258,615 748,937 841,573 428,538 633,459 7,510,713 70,729,699 THAILAND — 0.21% Bangkok Dusit Medical Services PCL NVDRb Bangkok Expressway & Metro PCL BEC World PCL NVDRb Central Pattana PCL NVDR Charoen Pokphand Foods PCL NVDR Energy Absolute PCL NVDRb Glow Energy PCL NVDR Indorama Ventures PCL NVDR Kasikornbank PCL NVDRb Security 245,014 630,941 64,546 436,905 UNITED ARAB EMIRATES — 0.09% Abu Dhabi Commercial Bank PJSC 370,611 Aldar Properties PJSC 1,719,828 DP World Ltd. 51,343 Dubai Financial Market PJSC 1,395,215 Emaar Properties PJSC 764,841 686,111 1,348,481 872,317 501,398 1,420,113 4,828,420 UNITED KINGDOM — 6.48% 3i Group PLC Aggreko PLC Anglo American PLC Antofagasta PLCb ARM Holdings PLC Ashtead Group PLC AstraZeneca PLC Auto Trader Group PLCc Aviva PLC BAE Systems PLC Barclays PLC Barratt Developments PLC Berkeley Group Holdings PLC BHP Billiton PLC BP PLC British American Tobacco PLC British Land Co. PLC (The) BT Group PLC Burberry Group PLC Capita PLC Carnival PLC Centrica PLC 527,187 54,868 216,161 73,315 204,809 27,434 193,930 313,599 438,097 586,570 2,266,456 39,732 7,095 274,813 2,541,902 273,394 399,701 1,219,882 72,842 54,395 61,372 1,112,496 4,318,669 936,829 2,383,510 487,188 4,546,586 435,633 12,997,637 1,543,467 2,274,878 4,158,734 4,650,679 230,791 252,740 3,446,920 14,405,693 17,512,226 3,560,884 6,694,773 1,276,603 693,314 2,967,634 3,561,195 53 Schedule of Investments (Continued) iSHARES® MSCI ACWI ETF July 31, 2016 Security Compass Group PLC Diageo PLC Experian PLC Fresnillo PLC GlaxoSmithKline PLC Glencore PLC HSBC Holdings PLC Imperial Brands PLC Inmarsat PLC Intertek Group PLC J Sainsbury PLCb Johnson Matthey PLC Kingfisher PLC Land Securities Group PLC Legal & General Group PLC Liberty Global PLC LiLAC Class Ca,b Lloyds Banking Group PLC London Stock Exchange Group PLC Marks & Spencer Group PLC Mediclinic International PLC National Grid PLC Next PLC Old Mutual PLC Pearson PLC Persimmon PLC Petrofac Ltd. Prudential PLC Randgold Resources Ltd. Reckitt Benckiser Group PLC RELX PLC Rio Tinto PLC Rolls-Royce Holdings PLC Royal Bank of Scotland Group PLCa Royal Dutch Shell PLC Class A Royal Dutch Shell PLC Class B RSA Insurance Group PLC SABMiller PLC Severn Trent PLC Shire PLC Sky PLC Smith & Nephew PLC SSE PLC 54 Shares 396,847 $ 320,802 365,629 90,816 730,865 1,748,681 2,748,130 142,503 193,457 29,799 506,082 85,353 196,768 261,711 1,676,584 Value 7,566,196 9,204,324 7,170,034 2,328,331 16,379,841 4,335,820 18,064,680 7,536,833 2,008,590 1,434,200 1,507,128 3,712,468 878,580 3,801,363 4,578,884 15,128 6,840,026 529,480 4,826,820 17,767 491,447 24,596 580,851 19,393 1,305,480 226,330 17,028 47,773 407,953 41,310 86,209 389,339 181,632 379,819 654,602 2,083,414 350,727 8,352,053 1,293,842 3,650,301 2,650,396 381,398 472,857 7,230,885 4,867,698 8,380,741 7,417,881 5,935,978 3,988,901 350,493 497,596 559,212 97,911 164,864 21,285 160,350 192,560 254,146 196,838 895,333 12,843,199 14,864,169 646,992 9,661,804 692,090 10,370,201 2,353,369 4,194,252 3,961,943 Security Standard Chartered PLC Standard Life PLC Tate & Lyle PLC Taylor Wimpey PLC Tesco PLCa Unilever PLC Vedanta Ltd. ADR Vodafone Group PLC Weir Group PLC (The) Wm Morrison Supermarkets PLCb Wolseley PLC WPP PLC Shares 525,030 $ 725,378 45,881 628,617 1,165,028 210,098 213,796 4,072,057 48,246 650,848 81,597 348,836 Value 4,214,561 2,917,183 440,424 1,291,149 2,413,021 9,856,599 2,078,097 12,410,555 938,424 1,605,556 4,559,878 7,864,281 357,984,909 UNITED STATES — 53.14% 3M Co. Abbott Laboratories AbbVie Inc. Accenture PLC Class A Activision Blizzard Inc. Acuity Brands Inc. Adobe Systems Inc.a Advance Auto Parts Inc. AES Corp./VA Aetna Inc. Aflac Inc. AGCO Corp. Agilent Technologies Inc. Air Products & Chemicals Inc. Akamai Technologies Inc.a Alcoa Inc. Alexion Pharmaceuticals Inc.a Alleghany Corp.a Allergan PLCa Alliant Energy Corp. Allstate Corp. (The) Alphabet Inc. Class Aa Alphabet Inc. Class Ca Altria Group Inc. Amazon.com Inc.a Ameren Corp. American Electric Power Co. Inc. American Express Co. American International Group Inc. American Tower Corp. American Water Works Co. Inc. 2016 105,479 216,692 229,405 114,466 85,140 5,676 106,898 13,717 251,320 51,557 75,850 23,829 28,380 40,678 35,570 160,820 35,948 1,908 55,341 30,272 101,695 42,570 43,989 302,720 58,652 28,809 111,643 141,561 202,917 96,019 45,408 iSHARES ANNUAL REPORT TO 18,813,234 9,696,967 15,193,493 12,912,909 3,419,222 1,489,553 10,461,038 2,329,970 3,103,802 5,939,882 5,482,438 1,147,605 1,365,362 6,078,107 1,797,352 1,707,908 4,622,913 1,036,998 13,998,506 1,218,448 6,948,819 33,687,344 33,818,303 20,494,144 44,505,724 1,510,744 7,736,860 9,125,022 11,046,802 11,116,120 3,749,793 SHAREHOLDERS Schedule of Investments (Continued) iSHARES® MSCI ACWI ETF July 31, 2016 Security Shares Ameriprise Financial Inc. AmerisourceBergen Corp. AMETEK Inc. Amgen Inc. Amphenol Corp. Class A Anadarko Petroleum Corp. Annaly Capital Management Inc. Anthem Inc. Aon PLC Apache Corp. Apple Inc. Applied Materials Inc. Archer-Daniels-Midland Co. AT&T Inc. Autodesk Inc.a Autoliv Inc. Automatic Data Processing Inc. AutoZone Inc.a AvalonBay Communities Inc. Baker Hughes Inc. Bank of America Corp. Bank of New York Mellon Corp. (The) Baxter International Inc. BB&T Corp. Becton Dickinson and Co. Bed Bath & Beyond Inc. Berkshire Hathaway Inc. Class Ba Best Buy Co. Inc. Biogen Inc.a BioMarin Pharmaceutical Inc.a BlackRock Inc.e Boeing Co. (The) BorgWarner Inc. Boston Properties Inc. Boston Scientific Corp.a Bristol-Myers Squibb Co. Broadcom Ltd. Brown-Forman Corp. Class B Bunge Ltd. CA Inc. Cabot Oil & Gas Corp. Calpine Corp.a Capital One Financial Corp. Cardinal Health Inc. SCHEDULES OF INVESTMENTS Value 33,110 $ 19,393 15,609 107,844 29,326 81,499 194,403 45,408 18,920 55,349 814,506 240,284 107,875 867,955 36,421 9,933 116,358 3,311 16,082 69,256 1,494,238 3,173,262 1,652,090 734,091 18,552,403 1,745,484 4,444,140 2,134,545 5,963,887 2,025,764 2,905,823 84,879,670 6,317,066 4,863,005 37,573,772 2,165,228 1,050,911 10,350,044 2,695,055 2,985,623 3,312,514 21,651,509 163,224 81,690 144,387 42,339 52,503 174,064 60,544 35,002 14,663 13,904 91,762 26,015 30,022 306,504 264,098 65,274 6,149 13,717 137,170 79,464 80,410 81,499 67,639 6,431,026 3,922,754 5,323,549 7,451,664 2,360,010 25,112,213 2,034,278 10,148,130 1,457,795 5,092,340 12,264,909 863,178 4,267,027 7,441,917 19,757,171 10,573,083 603,770 903,127 4,752,941 1,960,377 1,104,833 5,466,953 5,654,620 Security Shares a,b CarMax Inc. Carnival Corp. Caterpillar Inc. CBRE Group Inc. Class Aa CBS Corp. Class B NVS Celanese Corp. Series A Celgene Corp.a CenturyLink Inc. Cerner Corp.a CF Industries Holdings Inc. CH Robinson Worldwide Inc. Charles Schwab Corp. (The) Charter Communications Inc.a Cheniere Energy Inc.a Chevron Corp. Chipotle Mexican Grill Inc.a,b Chubb Ltd. Church & Dwight Co. Inc. Cigna Corp. Cisco Systems Inc. CIT Group Inc. Citigroup Inc. Citrix Systems Inc.a Clorox Co. (The) CME Group Inc. CMS Energy Corp. Coach Inc. Coca-Cola Co. (The) Cognizant Technology Solutions Corp. Class Aa Colgate-Palmolive Co. Comcast Corp. Class A Comerica Inc. ConAgra Foods Inc. Concho Resources Inc.a ConocoPhillips Consolidated Edison Inc. Constellation Brands Inc. Class A Core Laboratories NV Corning Inc. Costco Wholesale Corp. CR Bard Inc. Crown Castle International Corp. CSX Corp. Cummins Inc. Value 28,380 $ 86,559 83,383 49,665 108,317 14,663 117,304 92,456 30,745 34,056 49,665 237,193 23,650 49,192 263,461 4,730 67,710 29,918 48,719 730,785 32,637 439,981 26,961 21,440 46,477 38,786 57,706 562,900 1,653,419 4,044,036 6,900,777 1,412,969 5,656,314 929,927 13,160,336 2,906,817 1,918,181 840,502 3,457,677 6,741,025 5,554,676 2,057,701 26,999,483 2,005,473 8,481,355 2,939,144 6,282,802 22,310,866 1,127,935 19,275,568 2,403,034 2,810,141 4,751,808 1,752,351 2,487,706 24,559,327 118,250 150,434 380,292 52,030 140,008 21,758 165,407 36,512 26,961 10,406 245,487 71,896 29,799 36,421 175,010 27,092 6,798,193 11,196,803 25,574,637 2,353,837 6,546,774 2,702,344 6,751,914 2,923,881 4,438,589 1,215,525 5,454,721 12,022,449 6,666,930 3,533,930 4,958,033 3,326,085 55 Schedule of Investments (Continued) iSHARES® MSCI ACWI ETF July 31, 2016 Security CVS Health Corp. Danaher Corp. Deere & Co. Delphi Automotive PLC Delta Air Lines Inc. Devon Energy Corp. Discover Financial Services Dollar General Corp. Dollar Tree Inc.a Dominion Resources Inc./VA Dover Corp. Dow Chemical Co. (The) DR Horton Inc. Dr Pepper Snapple Group Inc. DTE Energy Co. Duke Energy Corp. Duke Realty Corp. Eaton Corp. PLC eBay Inc.a Ecolab Inc. Edgewell Personal Care Co.a Edison International Edwards Lifesciences Corp.a EI du Pont de Nemours & Co. Electronic Arts Inc.a Eli Lilly & Co. EMC Corp. Emerson Electric Co. Endo International PLCa Entergy Corp. EOG Resources Inc. EQT Corp. Equinix Inc. Equity Residential Estee Lauder Companies Inc. (The) Class A Eversource Energy Exelon Corp. Expedia Inc. Expeditors International of Washington Inc. Express Scripts Holding Co.a Exxon Mobil Corp. F5 Networks Inc.a Facebook Inc. Class Aa 56 Shares 156,209 $ 123,663 52,503 43,043 41,274 69,531 45,881 33,110 32,637 111,628 56,760 150,981 89,870 61,720 10,879 121,088 66,220 91,289 177,131 47,300 7,453 89,977 31,691 130,257 64,328 150,981 324,005 89,035 41,624 43,103 89,870 26,015 11,199 51,084 Value 14,483,699 10,071,115 4,080,008 2,919,176 1,599,368 2,661,647 2,607,876 3,136,841 3,142,617 8,709,217 4,054,367 8,103,150 2,954,926 6,080,037 1,060,920 10,363,922 1,906,474 5,788,636 5,519,402 5,599,374 630,598 6,962,420 3,629,253 9,009,877 4,909,513 12,514,815 9,162,861 4,977,057 722,593 3,508,153 7,342,379 1,895,453 4,175,771 3,473,201 23,177 32,919 137,643 17,028 2,153,143 1,925,432 5,131,331 1,986,316 80,883 111,155 598,302 16,730 328,735 3,998,047 8,455,561 53,218,963 2,064,817 40,743,416 Security Fastenal Co. Federal Realty Investment Trust FedEx Corp. Fifth Third Bancorp. First Republic Bank/CA FirstEnergy Corp. Fluor Corp. FMC Technologies Inc.a FNF Group Ford Motor Co. Fortive Corp.a Franklin Resources Inc. Freeport-McMoRan Inc. Frontier Communications Corp.b Gap Inc. (The) General Dynamics Corp. General Electric Co. General Growth Properties Inc. General Mills Inc. General Motors Co. Gilead Sciences Inc. Global Payments Inc. Goldman Sachs Group Inc. (The) Halliburton Co. Harley-Davidson Inc. Harris Corp. Hartford Financial Services Group Inc. (The) HCA Holdings Inc.a HCP Inc. Helmerich & Payne Inc. Hershey Co. (The) Hess Corp. Hewlett Packard Enterprise Co. HollyFrontier Corp. Home Depot Inc. (The) Honeywell International Inc. Hormel Foods Corp. Host Hotels & Resorts Inc. HP Inc. Humana Inc. Illinois Tool Works Inc. Illumina Inc.a Incyte Corp.a Ingersoll-Rand PLC 2016 Shares Value 26,961 $ 9,460 46,354 174,305 42,570 80,883 54,625 33,583 41,976 476,493 64,572 113,047 205,282 163,658 57,706 49,665 1,336,977 74,734 107,844 151,754 200,552 18,920 63,855 152,865 27,092 10,144 1,152,583 1,605,362 7,504,713 3,308,309 3,050,992 2,824,434 2,923,530 852,337 1,581,236 6,032,401 3,113,016 4,091,171 2,660,455 851,022 1,488,238 7,295,292 41,633,464 2,387,751 7,752,905 4,786,321 15,937,867 1,412,567 10,140,813 6,674,086 1,433,709 878,673 63,923 41,345 60,544 18,920 15,839 51,581 300,078 39,732 202,917 98,455 43,516 75,680 300,078 21,285 87,505 24,596 31,691 82,775 2,547,332 3,188,940 2,375,141 1,172,472 1,754,328 2,767,321 6,307,640 1,009,987 28,051,246 11,453,270 1,625,323 1,342,563 4,204,093 3,672,727 10,098,077 4,091,545 2,858,845 5,484,672 iSHARES ANNUAL REPORT TO SHAREHOLDERS Schedule of Investments (Continued) iSHARES® MSCI ACWI ETF July 31, 2016 Security Shares Intel Corp. Intercontinental Exchange Inc. International Business Machines Corp. International Paper Co. Intuit Inc. Intuitive Surgical Inc.a Jacobs Engineering Group Inc.a JM Smucker Co. (The) Johnson & Johnson Johnson Controls Inc. JPMorgan Chase & Co. Juniper Networks Inc. Kansas City Southern Kellogg Co. KeyCorp Kimberly-Clark Corp. Kimco Realty Corp. Kinder Morgan Inc./DE KLA-Tencor Corp. Kohl’s Corp. Kraft Heinz Co. (The) Kroger Co. (The) L Brands Inc. L-3 Communications Holdings Inc. Laboratory Corp. of America Holdingsa Las Vegas Sands Corp. Level 3 Communications Inc.a Liberty Global PLC Series Aa,b Liberty Global PLC Series C NVSa Liberty Interactive Corp. QVC Group Series Aa Lincoln National Corp. LinkedIn Corp. Class Aa LKQ Corp.a Lockheed Martin Corp. Lowe’s Companies Inc. lululemon athletica Inc.a,b LyondellBasell Industries NV Class A M&T Bank Corp. Macerich Co. (The) Macy’s Inc. Marathon Oil Corp. SCHEDULES OF INVESTMENTS Value 659,362 $ 10,879 22,985,359 2,874,232 132,440 104,060 50,138 5,203 60,778 15,788 401,504 133,859 546,788 107,875 14,913 68,585 100,096 63,552 55,341 283,327 13,244 43,989 74,382 188,727 32,637 34,529 21,272,513 4,766,989 5,564,817 3,620,039 3,252,839 2,433,878 50,280,346 6,146,805 34,978,028 2,447,684 1,433,288 5,672,665 1,171,123 8,233,162 1,776,446 5,760,038 1,002,703 1,829,503 6,425,861 6,452,576 2,411,874 5,235,632 32,637 51,581 36,421 53,922 55,814 4,554,820 2,612,578 1,842,903 1,709,867 1,727,443 61,720 61,720 17,974 53,922 51,118 162,239 24,596 1,654,713 2,695,312 3,464,129 1,854,378 12,919,052 13,349,025 1,909,879 55,341 14,190 27,907 61,490 138,589 4,164,964 1,625,606 2,490,421 2,203,187 1,890,354 Security Shares Value Marathon Petroleum Corp. Marriott International Inc./MD Class Ab Marsh & McLennan Companies Inc. Martin Marietta Materials Inc. Marvell Technology Group Ltd. Masco Corp. MasterCard Inc. Class A Mattel Inc. McCormick & Co. Inc./MD McDonald’s Corp. McKesson Corp. Mead Johnson Nutrition Co. Medtronic PLC Merck & Co. Inc. MetLife Inc. MGM Resorts Internationala Michael Kors Holdings Ltd.a,b Micron Technology Inc.a Microsoft Corp. Molson Coors Brewing Co. Mondelez International Inc. Monsanto Co. Monster Beverage Corp.a Moody’s Corp. Morgan Stanley Mosaic Co. (The) Motorola Solutions Inc. Murphy Oil Corp. Mylan NVa National Oilwell Varco Inc. Navient Corp. NetApp Inc. Netflix Inc.a New York Community Bancorp. Inc. Newell Brands Inc. Newmont Mining Corp. News Corp. Class A NextEra Energy Inc. NIKE Inc. Class B Noble Energy Inc. Nordstrom Inc.b Norfolk Southern Corp. 95,073 $ 3,744,925 35,537 2,548,003 88,924 8,987 50,138 59,598 128,549 67,639 17,791 148,542 41,624 46,354 206,701 400,158 103,165 81,042 36,421 168,916 1,123,375 17,974 223,294 76,792 25,069 55,341 189,189 43,989 60,544 50,639 63,382 65,274 145,211 52,922 67,166 5,846,753 1,821,216 589,122 2,174,135 12,243,007 2,257,790 1,819,130 17,475,966 8,098,365 4,134,777 18,113,209 23,473,268 4,409,272 1,943,387 1,883,694 2,320,906 63,672,895 1,836,224 9,820,470 8,199,082 4,026,833 5,866,699 5,435,400 1,187,703 4,200,543 1,389,028 2,965,644 2,111,614 2,061,996 1,394,495 6,128,898 27,727 48,719 35,948 62,295 72,082 231,770 90,343 12,443 52,503 400,655 2,555,799 1,581,712 807,966 9,247,400 12,863,235 3,227,052 550,354 4,713,719 57 Schedule of Investments (Continued) iSHARES® MSCI ACWI ETF July 31, 2016 Security Northern Trust Corp. Northrop Grumman Corp. NRG Energy Inc. Nuance Communications Inc.a Nucor Corp. NVIDIA Corp. O’Reilly Automotive Inc.a Occidental Petroleum Corp. OGE Energy Corp. Omnicom Group Inc. ONEOK Inc. Oracle Corp. PACCAR Inc. Palo Alto Networks Inc.a Parker-Hannifin Corp. Paychex Inc. PayPal Holdings Inc.a Pentair PLC People’s United Financial Inc. PepsiCo Inc. Perrigo Co. PLC Pfizer Inc. PG&E Corp. Philip Morris International Inc. Phillips 66 Pinnacle West Capital Corp. Pioneer Natural Resources Co. PNC Financial Services Group Inc. (The)e PPG Industries Inc. PPL Corp. Praxair Inc. Priceline Group Inc. (The)a Principal Financial Group Inc. Procter & Gamble Co. (The) Progressive Corp. (The) Prologis Inc. Prudential Financial Inc. Public Service Enterprise Group Inc. Public Storage PulteGroup Inc. Qorvo Inc.a QUALCOMM Inc. Quest Diagnostics Inc. Ralph Lauren Corp. 58 Shares Value 64,871 $ 44,935 117,348 57,233 75,850 108,790 15,136 118,222 41,624 39,259 41,624 467,324 95,546 13,717 49,192 133,859 177,131 28,206 76,626 214,762 24,596 908,160 101,432 226,094 78,518 22,231 22,231 4,384,631 9,734,269 1,624,096 919,734 4,068,594 6,211,909 4,398,976 8,834,730 1,339,044 3,230,623 1,864,339 19,178,977 5,634,348 1,795,418 5,617,234 7,935,162 6,596,358 1,800,107 1,161,650 23,391,877 2,247,828 33,502,022 6,485,562 22,668,184 5,972,079 1,753,359 3,614,094 92,828 40,678 97,513 56,287 6,841 83,383 360,901 85,144 54,395 64,546 100,339 23,650 81,356 19,866 224,675 44,975 6,622 7,672,234 4,259,393 3,677,215 6,559,687 9,240,891 3,888,149 30,889,517 2,768,031 2,963,984 4,859,668 4,616,597 5,650,458 1,723,120 1,256,127 14,060,162 3,884,041 649,552 Security Range Resources Corp. Raytheon Co. Realty Income Corp. Red Hat Inc.a Regeneron Pharmaceuticals Inc.a Regions Financial Corp. Republic Services Inc. Reynolds American Inc. Rockwell Automation Inc. Ross Stores Inc. Royal Caribbean Cruises Ltd. S&P Global Inc. salesforce.com inc.a SBA Communications Corp. Class Aa SCANA Corp. Schlumberger Ltd. Seagate Technology PLC Sempra Energy ServiceNow Inc.a Simon Property Group Inc. Sirius XM Holdings Inc.a,b Skyworks Solutions Inc. SL Green Realty Corp. Southern Co. (The) Southwest Airlines Co. Southwestern Energy Co.a Spectra Energy Corp. Splunk Inc.a Sprint Corp.a,b St. Jude Medical Inc. Starbucks Corp. Starwood Hotels & Resorts Worldwide Inc. State Street Corp. Stryker Corp. SunTrust Banks Inc. Symantec Corp. Synchrony Financiala Sysco Corp. T Rowe Price Group Inc. Target Corp. TE Connectivity Ltd. Tesla Motors Inc.a,b Tesoro Corp. 2016 Shares 38,786 $ 61,963 53,449 23,173 13,717 240,757 13,904 173,118 10,879 52,503 28,853 65,276 88,924 Value 1,563,464 8,645,697 3,820,000 1,744,695 5,831,371 2,207,742 712,719 8,666,287 1,244,558 3,246,261 2,090,111 7,976,727 7,273,983 28,034 22,157 194,403 62,909 35,199 24,123 57,709 320,694 45,408 13,717 134,025 30,745 90,816 141,427 27,434 347,182 59,125 259,677 3,223,910 1,660,446 15,653,330 2,014,975 3,938,064 1,807,295 13,102,251 1,407,847 2,997,836 1,616,137 7,170,338 1,137,872 1,324,097 5,087,129 1,715,722 2,131,697 4,909,740 15,074,250 46,827 68,314 60,778 104,107 166,023 121,101 91,861 79,615 91,762 84,667 17,028 18,920 3,655,316 4,493,695 7,067,266 4,402,685 3,391,850 3,376,296 4,757,481 5,627,984 6,912,431 5,103,727 3,998,004 1,440,758 iSHARES ANNUAL REPORT TO SHAREHOLDERS Schedule of Investments (Continued) iSHARES® MSCI ACWI ETF July 31, 2016 Security Shares Texas Instruments Inc. Textron Inc. Thermo Fisher Scientific Inc. Tiffany & Co. Time Warner Inc. TJX Companies Inc. (The) Toll Brothers Inc.a Tractor Supply Co. Travelers Companies Inc. (The) Trimble Navigation Ltd.a TripAdvisor Inc.a Twenty-First Century Fox Inc. Class A Twitter Inc.a Tyco International PLC Tyson Foods Inc. Class A U.S. Bancorp. UDR Inc. Ulta Salon Cosmetics & Fragrance Inc.a Under Armour Inc. Class Aa,b Under Armour Inc. Class Ca Union Pacific Corp. United Continental Holdings Inc.a United Parcel Service Inc. Class B United Technologies Corp. UnitedHealth Group Inc. Valero Energy Corp. Varian Medical Systems Inc.a Ventas Inc. VeriSign Inc.a,b Verisk Analytics Inc. Class Aa Verizon Communications Inc. Vertex Pharmaceuticals Inc.a VF Corp. Viacom Inc. Class B NVS Visa Inc. Class A Vornado Realty Trust Vulcan Materials Co. Wal-Mart Stores Inc. Walgreens Boots Alliance Inc. Walt Disney Co. (The) Waste Connections Inc.a Waste Management Inc. Waters Corp.a SCHEDULES OF INVESTMENTS Value 149,967 $ 73,520 78,991 12,771 130,548 144,265 63,855 19,866 43,043 35,475 19,393 10,460,198 2,867,280 12,546,930 823,985 10,006,504 11,789,336 1,788,579 1,820,719 5,002,457 937,959 1,356,928 249,436 98,384 118,011 47,773 262,624 58,179 6,644,975 1,637,110 5,377,761 3,516,093 11,074,854 2,166,004 13,717 24,596 24,776 126,764 13,717 84,667 113,993 147,576 78,991 35,002 44,462 55,814 21,758 566,181 41,624 34,056 67,639 292,452 51,601 31,691 204,856 139,535 227,986 24,596 138,116 17,028 3,583,018 970,558 884,503 11,795,390 643,190 9,152,503 12,271,346 21,132,883 4,129,649 3,316,089 3,386,226 4,834,051 1,855,522 31,372,089 4,037,528 2,126,116 3,075,545 22,825,879 5,541,947 3,929,050 14,948,342 11,058,149 21,875,257 1,831,910 9,132,230 2,706,260 Security Weatherford International PLCa,b WEC Energy Group Inc. Wells Fargo & Co. Welltower Inc. Western Digital Corp. Western Union Co. (The) Weyerhaeuser Co. Whirlpool Corp. Whole Foods Market Inc. Williams Companies Inc. (The) Willis Towers Watson PLC Wynn Resorts Ltd. Xcel Energy Inc. Xerox Corp. XL Group Ltd. Xylem Inc./NY Yahoo! Inc.a Yum! Brands Inc. Zillow Group Inc. Class Ca,b Zimmer Biomet Holdings Inc. Zoetis Inc. Shares 227,513 $ 38,786 696,256 41,151 38,665 143,319 97,737 22,231 43,043 131,494 16,082 17,974 43,103 257,785 34,628 81,499 176,902 78,991 37,367 49,192 58,179 Value 1,292,274 2,517,599 33,399,400 3,264,509 1,836,974 2,866,380 3,197,955 4,276,355 1,311,951 3,151,911 1,988,057 1,760,553 1,895,670 2,655,186 1,198,475 3,896,467 6,755,887 7,063,375 1,466,655 6,451,039 2,936,295 2,937,440,754 TOTAL COMMON STOCKS (Cost: $5,448,167,434) 5,475,673,431 PREFERRED STOCKS — 0.61% BRAZIL — 0.40% Banco Bradesco SA Cia. Brasileira de Distribuicao Cia. Energetica de Minas Gerais Itau Unibanco Holding SA Itausa-Investimentos Itau SA Lojas Americanas SA Petroleo Brasileiro SA Telefonica Brasil SA Vale SA 566,608 70,371 331,186 466,720 724,180 340,860 851,400 47,300 520,300 4,971,230 1,068,279 931,345 4,878,873 1,872,957 2,019,388 3,126,506 720,387 2,416,069 22,005,034 COLOMBIA — 0.01% Bancolombia SA 113,520 969,378 969,378 GERMANY — 0.14% Henkel AG & Co. KGaA Porsche Automobil Holding SE Volkswagen AG 22,704 17,501 27,434 2,828,308 917,269 3,859,303 7,604,880 59 Schedule of Investments (Continued) iSHARES® MSCI ACWI ETF July 31, 2016 Security ITALY — 0.01% Telecom Italia SpA/Milano Shares Value 650,375 $ ADR — American Depositary Receipts CPO — Certificates of Participation (Ordinary) GDR — Global Depositary Receipts NVDR — Non-Voting Depositary Receipts NVS — Non-Voting Shares SDR — Swedish Depositary Receipts 452,733 452,733 SOUTH KOREA — 0.05% Samsung Electronics Co. Ltd. 2,582 2,915,886 a Non-income earning security. b All or a portion of this security represents a security on loan. See Note 1. c This security may be resold to qualified institutional buyers under Rule 144A 2,915,886 TOTAL PREFERRED STOCKS (Cost: $38,748,247) of the Securities Act of 1933. d This security may be resold to qualified foreign investors and foreign 33,947,911 institutional buyers under Regulation S of the Securities Act of 1933. Affiliated issuer. See Schedule 1. Affiliated money market fund. The rate quoted is the annualized seven-day yield of the fund at period end. All or a portion of this security represents an investment of securities lending collateral. See Note 1. i The cost of investments for federal income tax purposes was $5,634,628,226. Net unrealized depreciation was $13,514,022, of which $664,685,900 represented gross unrealized appreciation on securities and $678,199,922 represented gross unrealized depreciation on securities. e f g h SHORT-TERM INVESTMENTS — 2.02% MONEY MARKET FUNDS — 2.02% BlackRock Cash Funds: Institutional, SL Agency Shares 0.57%f,g,h 101,035,684 BlackRock Cash Funds: Prime, SL Agency Shares 0.47%f,g,h 5,582,669 BlackRock Cash Funds: Treasury, SL Agency Shares 0.28%f,g 4,874,509 101,035,684 5,582,669 4,874,509 111,492,862 TOTAL SHORT-TERM INVESTMENTS (Cost: $111,492,862) 111,492,862 TOTAL INVESTMENTS IN SECURITIES — 101.70% (Cost: $5,598,408,543)i Other Assets, Less Liabilities — (1.70)% NET ASSETS — 100.00% 5,621,114,204 (93,803,453) $5,527,310,751 Schedule 1 — Affiliates (Note 2) Investments in issuers considered to be affiliates of the Fund (excluding affiliated money market funds) during the year ended July 31, 2016, for purposes of Section 2(a)(3) of the 1940 Act, were as follows: Affiliated issuer BlackRock Inc. PNC Financial Services Group Inc. (The) 60 Shares held at beginning of year Shares purchased 15,934 1,276 106,548 8,624 Shares held at end of year Value at end of year Dividend income Net realized gain (loss) (3,306) 13,904 $ 5,092,340 $135,540 $ 403,559 (22,344) 92,828 $ 882,014 Shares sold 2016 7,672,234 210,540 $12,764,574 $346,080 iSHARES ANNUAL REPORT TO 478,455 SHAREHOLDERS Schedule of Investments (Continued) iSHARES® MSCI ACWI ETF July 31, 2016 Schedule 2 — 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 July 31, 2016. The breakdown of the Fund’s investments into major categories is disclosed in the schedule of investments above. Investments: Assets: Common stocks Preferred stocks Money market funds Total a Level 1 Level 2 Level 3 Total $5,474,799,023 33,947,911 111,492,862 $874,408 — — $ 0a — — $5,475,673,431 33,947,911 111,492,862 $5,620,239,796 $874,408 $ 0a $5,621,114,204 Rounds to less than $1. See notes to financial statements. SCHEDULES OF INVESTMENTS 61 Schedule of Investments iSHARES® MSCI ACWI ex U.S. ETF July 31, 2016 Security Shares Value COMMON STOCKS — 98.36% AUSTRALIA — 5.29% Alumina Ltd. Amcor Ltd./Australia AMP Ltd. Aristocrat Leisure Ltd. Asciano Ltd. ASX Ltd. Aurizon Holdings Ltd. Australia & New Zealand Banking Group Ltd. BHP Billiton Ltd. Boral Ltd. Brambles Ltd. Commonwealth Bank of Australia Computershare Ltd. Crown Resorts Ltd. CSL Ltd. Fortescue Metals Group Ltd.a Goodman Group Insurance Australia Group Ltd. Macquarie Group Ltd. Medibank Pvt Ltd. Mirvac Group National Australia Bank Ltd. Newcrest Mining Ltd.b Oil Search Ltd. Orica Ltd. Origin Energy Ltd. Qantas Airways Ltd. QBE Insurance Group Ltd. Rio Tinto Ltd. Santos Ltd. Scentre Group Seek Ltd. Sonic Healthcare Ltd. South32 Ltd.b Stockland Suncorp Group Ltd. Sydney Airport Tabcorp Holdings Ltd. Telstra Corp. Ltd. Transurban Group Treasury Wine Estates Ltd. 62 538,855 $ 143,585 477,085 45,825 128,105 47,354 267,506 311,646 358,375 265,875 272,865 189,460 135,360 80,418 54,285 243,225 296,103 458,955 42,538 385,400 600,273 281,296 90,570 151,810 63,920 259,177 272,591 171,658 44,501 225,578 688,550 32,900 92,590 658,338 249,805 214,790 300,383 177,373 407,727 264,936 62,510 542,663 1,639,159 2,106,755 555,179 890,901 1,788,773 1,057,253 6,120,631 5,316,914 1,388,278 2,789,409 11,138,328 913,578 800,694 4,868,599 818,944 1,696,900 2,106,926 2,405,103 899,274 1,003,722 5,674,226 1,720,943 818,067 687,441 1,083,431 654,698 1,431,241 1,676,267 752,668 2,773,662 417,594 1,617,172 918,179 956,916 2,192,463 1,725,994 659,232 1,788,082 2,529,139 458,478 Security Vocus Communications Ltd. Wesfarmers Ltd. Westfield Corp. Westpac Banking Corp. Woodside Petroleum Ltd. Woolworths Ltd. Shares 45,912 $ 133,653 274,950 355,113 81,635 151,340 Value 311,616 4,360,956 2,231,861 8,391,303 1,646,098 2,692,758 101,018,468 AUSTRIA — 0.10% Erste Group Bank AG IMMOEAST AG Escrowb OMV AG Raiffeisen Bank International AGb Voestalpine AG 26,555 54,189 11,308 18,095 18,107 703,923 1 300,513 238,770 638,222 1,881,429 BELGIUM — 0.98% Ageas Anheuser-Busch InBev SA/NV Groupe Bruxelles Lambert SA KBC Group NVb Solvay SA UCB SA Umicore SA 42,093 85,741 19,505 28,329 11,350 19,806 8,460 1,416,587 11,054,955 1,645,676 1,472,595 1,177,958 1,549,700 489,481 18,806,952 BRAZIL — 1.03% Ambev SA Banco do Brasil SA BB Seguridade Participacoes SA BM&FBovespa SA-Bolsa de Valores Mercadorias e Futuros BR Malls Participacoes SAb BRF SA CCR SA CETIP SA – Mercados Organizados Cia. de Saneamento Basico do Estado de Sao Paulo Cia. Siderurgica Nacional SAb Cielo SA CPFL Energia SA EDP – Energias do Brasil SA Embraer SA Engie Brasil Energia SA Fibria Celulose SA Hypermarcas SA 2016 470,000 117,500 71,100 2,733,572 765,182 662,961 258,500 122,200 70,559 94,000 1,526,657 531,534 1,185,297 544,679 23,538 315,088 70,500 117,500 122,520 49,573 77,400 94,000 23,500 47,000 70,500 671,761 402,402 1,392,962 350,278 344,330 431,265 306,873 287,752 598,696 iSHARES ANNUAL REPORT TO SHAREHOLDERS Schedule of Investments (Continued) iSHARES® MSCI ACWI ex U.S. ETF July 31, 2016 Security Shares JBS SA Klabin SA Units Kroton Educacional SA Lojas Renner SA Natura Cosmeticos SA Petroleo Brasileiro SAb TIM Participacoes SA Ultrapar Participacoes SA Vale SA 117,500 $ 70,500 195,444 120,500 23,500 352,500 98,660 47,000 141,000 Value 396,223 370,559 873,101 1,016,220 242,096 1,527,820 253,639 1,076,562 806,985 19,614,494 CANADA — 6.71% Agnico Eagle Mines Ltd. Agrium Inc. Alimentation Couche-Tard Inc. Class B ARC Resources Ltd. Bank of Montreal Bank of Nova Scotia (The) Barrick Gold Corp. BCE Inc. BlackBerry Ltd.b Bombardier Inc. Class Bb Brookfield Asset Management Inc. Class A Cameco Corp. Canadian Imperial Bank of Commerce/Canada Canadian National Railway Co. Canadian Natural Resources Ltd. Canadian Pacific Railway Ltd. Canadian Tire Corp. Ltd. Class A Canadian Utilities Ltd. Class A CCL Industries Inc. Class B Cenovus Energy Inc. CGI Group Inc. Class Ab Constellation Software Inc./Canada Crescent Point Energy Corp. Dollarama Inc. Eldorado Gold Corp. Empire Co. Ltd. Class A Enbridge Inc. Encana Corp. Fairfax Financial Holdings Ltd. Finning International Inc. SCHEDULES OF INVESTMENTS 27,730 16,920 1,615,678 1,537,533 49,720 52,170 77,092 134,890 124,403 19,740 68,150 263,993 2,250,659 918,941 4,948,123 6,859,059 2,719,780 946,545 517,377 396,784 112,487 55,781 3,889,451 533,834 46,116 83,922 128,075 16,215 14,805 10,942 3,063 84,130 22,560 3,507,723 5,326,655 3,883,352 2,432,281 1,557,531 337,226 548,923 1,205,774 1,096,644 1,645 54,756 21,531 150,381 14,316 102,930 99,170 2,350 44,252 670,476 801,574 1,593,959 616,954 228,345 4,239,385 798,501 1,261,473 718,049 Security First Quantum Minerals Ltd. Fortis Inc./Canada Franco-Nevada Corp. George Weston Ltd. Gildan Activewear Inc. Goldcorp Inc. Great-West Lifeco Inc. H&R REIT Husky Energy Inc. Imperial Oil Ltd. Kinross Gold Corp.b Loblaw Companies Ltd. Magna International Inc. Class A Manulife Financial Corp. Metro Inc. National Bank of Canada Onex Corp. Open Text Corp. Pembina Pipeline Corp. Peyto Exploration & Development Corp. Potash Corp. of Saskatchewan Inc. Power Corp. of Canada Power Financial Corp. PrairieSky Royalty Ltd. Restaurant Brands International Inc. RioCan REIT Rogers Communications Inc. Class B Royal Bank of Canada Saputo Inc. Seven Generations Energy Ltd. Class Ab Shaw Communications Inc. Class B Silver Wheaton Corp. SNC-Lavalin Group Inc. Sun Life Financial Inc. Suncor Energy Inc. Teck Resources Ltd. Class B TELUS Corp. Thomson Reuters Corp. Toronto-Dominion Bank (The) Shares 77,594 $ 28,995 19,505 6,626 36,897 91,991 36,462 16,301 54,997 38,305 148,990 30,137 45,590 220,458 27,965 33,155 12,590 18,800 43,945 Value 671,781 961,645 1,505,746 589,204 1,083,949 1,645,757 948,143 290,632 647,793 1,179,949 771,199 1,683,124 1,758,504 3,009,204 1,017,981 1,136,736 782,500 1,146,987 1,283,253 20,680 588,342 101,285 55,486 34,097 15,862 1,580,576 1,210,093 789,378 309,078 21,912 17,409 981,633 386,882 49,655 163,090 27,262 2,195,931 9,953,862 820,128 23,030 483,894 44,415 46,765 26,558 87,420 178,035 65,625 35,784 37,409 178,600 901,890 1,307,146 1,145,575 2,883,945 4,797,477 1,047,242 1,198,883 1,578,060 7,791,537 63 Schedule of Investments (Continued) iSHARES® MSCI ACWI ex U.S. ETF July 31, 2016 Security Shares b Tourmaline Oil Corp. TransCanada Corp. Turquoise Hill Resources Ltd.b Valeant Pharmaceuticals International Inc.a,b Yamana Gold Inc. 24,012 $ 83,190 125,131 36,391 93,080 Value 615,928 3,862,062 446,194 811,511 533,191 128,293,114 CHILE — 0.28% Aguas Andinas SA Series A Banco de Chile Banco de Credito e Inversiones Banco Santander Chile Cencosud SA Colbun SA Empresa Nacional de Electricidad SA/Chile Empresas CMPC SA Empresas COPEC SA Endesa Americas SA Enersis Americas SA Enersis Chile SA Itau CorpBanca LATAM Airlines Group SAb SACI Falabella 690,900 2,959,044 6,589 7,834,099 111,390 1,489,665 417,849 328,074 292,948 402,623 317,134 365,883 326,180 147,461 48,337 326,180 2,942,591 2,942,591 27,805,200 38,851 86,284 297,553 309,295 436,382 152,328 513,726 342,529 241,611 339,248 633,324 5,390,507 CHINA — 5.70% 3SBio Inc.b,c 58.com Inc. ADRb AAC Technologies Holdings Inc. Air China Ltd. Class H Alibaba Group Holding Ltd. ADRa,b Alibaba Pictures Group Ltd.a,b Anhui Conch Cement Co. Ltd. Class H ANTA Sports Products Ltd. AviChina Industry & Technology Co. Ltd. Class H Baidu Inc.b Bank of China Ltd. Class H Bank of Communications Co. Ltd. Class H Beijing Capital International Airport Co. Ltd. Class H 64 117,500 7,990 117,500 476,000 117,804 415,560 1,096,270 363,750 104,810 2,350,000 8,644,729 502,709 236,500 236,000 620,207 525,529 717,000 28,435 8,460,000 524,818 4,538,226 3,477,780 976,800 658,337 476,000 548,998 Security Beijing Enterprises Water Group Ltd.a Belle International Holdings Ltd. Brilliance China Automotive Holdings Ltd. Byd Co. Ltd. Class Ha,b China Communications Construction Co. Ltd. Class H China Construction Bank Corp. Class H China COSCO Holdings Co. Ltd. Class Ha,b China Everbright International Ltd. China Everbright Ltd. China Evergrande Group China Galaxy Securities Co. Ltd. Class H China Gas Holdings Ltd. China Huishan Dairy Holdings Co. Ltd.a China Jinmao Holdings Group Ltd. China Life Insurance Co. Ltd. Class H China Longyuan Power Group Corp. Ltd. China Mengniu Dairy Co. Ltd. China Merchants Bank Co. Ltd. Class H China Merchants Holdings International Co. Ltd. China Minsheng Banking Corp. Ltd. Class H China Mobile Ltd. China National Building Material Co. Ltd. Class H China Overseas Land & Investment Ltd. China Pacific Insurance Group Co. Ltd. Class H China Petroleum & Chemical Corp. Class H China Resources Beer Holdings Co. Ltd. 2016 Shares Value 940,000 $ 705,000 570,545 466,066 476,000 106,000 528,143 672,066 470,000 513,612 8,950,050 5,997,495 596,000 208,141 470,000 470,000 811,000 507,555 896,398 511,059 470,000 470,000 406,407 742,556 940,000 369,461 1,144,000 318,435 940,000 2,141,663 470,000 476,000 376,729 794,974 523,593 1,120,064 470,000 1,377,908 822,700 705,000 857,691 8,689,908 476,000 218,373 470,000 1,544,469 329,000 1,161,683 3,291,000 2,336,795 386,000 747,134 iSHARES ANNUAL REPORT TO SHAREHOLDERS Schedule of Investments (Continued) iSHARES® MSCI ACWI ex U.S. ETF July 31, 2016 Security Shares China Resources Land Ltd. China Shenhua Energy Co. Ltd. Class H China State Construction International Holdings Ltd. China Taiping Insurance Holdings Co. Ltd.b China Telecom Corp. Ltd. Class H China Unicom Hong Kong Ltd. China Vanke Co. Ltd. Class H CITIC Ltd. CITIC Securities Co. Ltd. Class H CNOOC Ltd. Country Garden Holdings Co. Ltd. CRRC Corp. Ltd. Class H Ctrip.com International Ltd.a,b Dalian Wanda Commercial Properties Co. Ltd. Class Hc Dongfeng Motor Group Co. Ltd. Class H Fosun International Ltd. GCL-Poly Energy Holdings Ltd. Geely Automobile Holdings Ltd. GOME Electrical Appliances Holding Ltd.a Great Wall Motor Co. Ltd. Class H Guangdong Investment Ltd. Guangzhou Automobile Group Co. Ltd. Class H Guangzhou R&F Properties Co. Ltd. Class H Haitong Securities Co. Ltd. Class H Hanergy Thin Film Power Group Ltd.b Huaneng Power International Inc. Class H Industrial & Commercial Bank of China Ltd. Class H JD.com Inc. ADRa,b Jiangxi Copper Co. Ltd. Class H SCHEDULES OF INVESTMENTS 571,333 $ Value 1,419,507 470,000 897,609 476,000 636,715 188,000 368,250 1,410,000 940,000 251,600 235,000 694,102 1,001,785 568,697 354,925 235,000 2,115,000 499,681 2,529,295 747,828 470,000 31,725 304,530 430,634 1,385,431 47,000 297,689 470,000 441,500 2,847,000 1,190,000 579,630 576,912 388,897 782,093 2,690,320 325,891 278,500 470,000 288,910 720,752 531,449 682,122 188,400 285,030 282,000 457,890 39,401 — 470,000 287,695 7,285,285 62,040 235,000 4,121,470 1,343,166 269,222 Security Lenovo Group Ltd. Longfor Properties Co. Ltd. Netease Inc. New China Life Insurance Co. Ltd. Class H New Oriental Education & Technology Group Inc. ADR PetroChina Co. Ltd. Class H PICC Property & Casualty Co. Ltd. Class H Ping An Insurance Group Co. of China Ltd. Class H Qunar Cayman Islands Ltd. ADRa,b Semiconductor Manufacturing International Corp.b Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd. Class B Shimao Property Holdings Ltd. Shui On Land Ltd. Sino Biopharmaceutical Ltd. Sino-Ocean Group Holding Ltd. Sinopec Shanghai Petrochemical Co. Ltd. Class H Sinopharm Group Co. Ltd. Class H SOHO China Ltd. SouFun Holdings Ltd. ADRb TAL Education Group Class A ADRb Tencent Holdings Ltd. Tingyi Cayman Islands Holding Corp.a Vipshop Holdings Ltd. ADRa,b Want Want China Holdings Ltd.a Yanzhou Coal Mining Co. Ltd. Class Ha YY Inc. ADRb Zhuzhou CRRC Times Electric Co. Ltd. Class H Zijin Mining Group Co. Ltd. Class H Shares 940,000 $ 352,500 8,225 Value 608,097 481,511 1,680,121 70,500 249,386 14,571 2,354,000 641,998 1,595,634 522,190 808,861 587,500 2,740,675 4,465 134,263 2,350,000 190,787 172,260 235,500 1,460,333 470,000 638,500 253,911 307,123 393,314 313,739 269,883 1,156,000 563,107 94,000 523,000 31,255 454,861 241,282 160,026 4,700 611,000 282,987 14,684,566 470,000 39,245 940,000 406,407 558,456 575,390 470,000 3,525 288,906 138,145 193,500 1,067,249 483,000 175,524 108,874,786 65 Schedule of Investments (Continued) iSHARES® MSCI ACWI ex U.S. ETF July 31, 2016 Security COLOMBIA — 0.03% Cementos Argos SA Shares Value 135,830 $ 507,176 21,150 24,910 399,181 979,215 1,378,396 DENMARK — 1.44% AP Moeller – Maersk A/S Class A AP Moeller – Maersk A/S Class B Carlsberg A/S Class B Chr Hansen Holding A/S Coloplast A/S Class B Danske Bank A/S Novo Nordisk A/S Class B Novozymes A/S Class B Pandora A/S Tryg A/S Vestas Wind Systems A/S William Demant Holding A/Sb 235 307,200 235 13,771 7,293 20,210 83,499 212,440 38,231 17,366 64,307 36,911 58,750 319,036 1,367,483 458,975 1,586,063 2,269,674 12,108,037 1,876,647 2,261,004 1,199,813 2,577,103 1,199,475 27,530,510 EGYPT — 0.05% Commercial International Bank Egypt SAE 196,381 1,047,592 1,047,592 FINLAND — 0.67% Fortum OYJ Kone OYJ Class B Metso OYJ Neste OYJ Nokia OYJ Nokian Renkaat OYJ Sampo OYJ Class A UPM-Kymmene OYJ Wartsila OYJ Abp 44,019 50,763 11,045 31,725 610,067 20,915 52,238 46,295 12,690 730,981 2,570,921 306,430 1,201,589 3,506,548 777,190 2,165,450 954,110 550,879 12,764,098 FRANCE — 6.77% Accor SA Aeroports de Paris Air Liquide SA Airbus Group SE Alstom SAb 66 Shares b 507,176 CZECH REPUBLIC — 0.07% CEZ AS Komercni Banka AS Security 19,823 8,492 39,715 67,915 24,675 829,603 903,277 4,236,396 3,997,037 607,456 ArcelorMittal Arkema SA AXA SA BNP Paribas SA Bouygues SA Bureau Veritas SA Capgemini SA Carrefour SA Casino Guichard Perrachon SAa Cie. de Saint-Gobain Cie. Generale des Etablissements Michelin Class B CNP Assurances Credit Agricole SA Danone SA Dassault Systemes Edenred Electricite de France SAa Engie SA Essilor International SA Eutelsat Communications SA Fonciere des Regions Gecina SA Groupe Eurotunnel SE Registered Hermes International Iliad SA Ingenico Group SA Kering L’Oreal SA Lagardere SCA Legrand SA LVMH Moet Hennessy Louis Vuitton SE Natixis SA Orange SA Pernod Ricard SA Publicis Groupe SA Remy Cointreau SA Renault SA Safran SA Sanofi Schneider Electric SE SCOR SE SES SA SFR Group SA 2016 Value 193,586 $ 5,941 221,157 119,145 29,228 13,395 21,427 68,620 5,903 64,208 1,244,530 507,366 4,508,442 5,909,592 864,825 291,041 2,059,427 1,719,233 319,820 2,721,244 23,030 26,623 119,145 60,239 15,376 21,385 19,035 152,280 28,461 15,468 2,528 8,034 79,900 3,160 3,525 5,641 9,654 28,905 21,855 43,073 2,354,883 406,823 1,055,213 4,639,915 1,270,137 485,091 249,151 2,507,479 3,645,729 307,542 237,859 1,215,539 830,402 1,359,757 685,288 618,378 1,834,171 5,502,996 558,317 2,377,012 28,357 126,665 226,542 18,330 28,736 3,290 23,500 27,559 128,545 67,054 42,141 37,600 13,160 4,864,349 521,955 3,468,097 2,094,848 2,140,128 287,775 2,056,323 1,873,726 10,946,221 4,388,015 1,231,591 823,896 310,953 iSHARES ANNUAL REPORT TO SHAREHOLDERS Schedule of Investments (Continued) iSHARES® MSCI ACWI ex U.S. ETF July 31, 2016 Security Shares Societe Generale SA Sodexo SA STMicroelectronics NV Suez Technip SA Total SA Unibail-Rodamco SE Valeo SA Veolia Environnement SA Vinci SA Vivendi SA Wendel SA Zodiac Aerospace 85,540 $ 16,685 87,655 24,689 17,233 233,120 10,604 17,390 56,247 62,375 150,939 2,115 20,445 Value 2,922,743 1,954,427 639,778 400,737 962,095 11,146,957 2,918,829 892,589 1,249,159 4,735,387 2,968,130 225,796 460,682 129,346,157 GERMANY — 5.89% adidas AG Allianz SE Registered BASF SE Bayer AG Registered Bayerische Motoren Werke AG Brenntag AG Commerzbank AG Continental AG Daimler AG Registered Deutsche Bank AG Registeredb Deutsche Boerse AG Deutsche Post AG Registered Deutsche Telekom AG Registered Deutsche Wohnen AG Bearer E.ON SE Fresenius Medical Care AG & Co. KGaA Fresenius SE & Co. KGaA GEA Group AG HeidelbergCement AG Infineon Technologies AG K+S AG Registereda Lanxess AG Linde AG MAN SE Merck KGaA METRO AG SCHEDULES OF INVESTMENTS 26,087 50,995 102,930 90,107 30,393 17,940 125,836 10,963 95,030 161,805 32,709 99,640 4,280,962 7,316,331 8,087,033 9,695,339 2,618,697 890,927 829,663 2,298,634 6,463,180 2,175,786 2,747,288 2,973,866 365,425 62,294 231,288 6,221,494 2,331,878 2,480,855 30,550 53,815 41,125 12,220 144,290 27,730 9,087 23,500 4,995 21,622 28,905 2,793,130 4,019,332 2,195,240 1,034,989 2,388,015 579,405 429,325 3,382,093 523,823 2,387,899 930,257 Security Muenchener RueckversicherungsGesellschaft AG in Muenchen Registered Osram Licht AG ProSiebenSat.1 Media SE Registered RWE AGb SAP SE Siemens AG Registered ThyssenKrupp AG Volkswagen AG Vonovia SE Shares 20,445 $ 15,898 38,017 60,728 113,162 87,432 61,574 5,214 43,945 Value 3,411,105 826,497 1,738,337 1,080,094 9,922,273 9,495,508 1,411,531 773,424 1,742,067 112,476,277 GREECE — 0.08% Alpha Bank AEb Eurobank Ergasias SAb FF Group Hellenic Telecommunications Organization SA JUMBO SA OPAP SA Piraeus Bank SAb Titan Cement Co. SA 150,691 130,190 7,240 298,263 74,248 178,115 24,135 23,331 21,796 902,538 8,944 234,804 275,770 174,270 151,390 204,434 1,591,294 HONG KONG — 2.40% AIA Group Ltd. Bank of East Asia Ltd. (The)a BOC Hong Kong Holdings Ltd. Cathay Pacific Airways Ltd.a Cheung Kong Infrastructure Holdings Ltd. Cheung Kong Property Holdings Ltd. CK Hutchison Holdings Ltd. CLP Holdings Ltd. Hang Seng Bank Ltd. Henderson Land Development Co. Ltd. Hong Kong & China Gas Co. Ltd. Hong Kong Exchanges and Clearing Ltd. Li & Fung Ltd.a Link REIT MTR Corp. Ltd. 1,269,000 283,800 587,500 235,000 7,857,712 1,172,145 1,926,800 381,575 235,000 2,077,462 276,060 276,060 235,500 94,000 1,970,853 3,230,207 2,452,129 1,677,717 325,980 849,047 1,940,770 1,575,561 126,900 906,000 352,500 235,000 3,131,638 453,003 2,630,139 1,329,454 67 Schedule of Investments (Continued) iSHARES® MSCI ACWI ex U.S. ETF July 31, 2016 Security New World Development Co. Ltd. Power Assets Holdings Ltd. Sands China Ltd.a Shangri-La Asia Ltd. SJM Holdings Ltd.a Sun Hung Kai Properties Ltd.a Swire Pacific Ltd. Class A Techtronic Industries Co. Ltd. WH Group Ltd.c Wharf Holdings Ltd. (The) Wynn Macau Ltd. Shares 806,000 $ 248,000 282,000 10,666 235,000 236,000 119,000 117,500 352,500 235,000 188,400 Value 936,877 2,427,284 1,075,677 11,450 146,573 3,375,795 1,421,569 497,410 277,550 1,618,664 305,909 45,901,923 HUNGARY — 0.07% MOL Hungarian Oil & Gas PLC OTP Bank PLC 515,882 778,617 50,838 377,345 314,357 161,839 161,446 165,310 78,257 91,902 336,440 2,219,079 2,860,275 5,164,885 3,762,757 3,576,029 4,984,096 2,648,999 3,476,653 3,815,230 32,508,003 INDONESIA — 0.62% Astra International Tbk PT Bank Central Asia Tbk PT Bank Mandiri Persero Tbk PT Bank Rakyat Indonesia Persero Tbk PT Charoen Pokphand Indonesia Tbk PT Gudang Garam Tbk PT Kalbe Farma Tbk PT Lippo Karawaci Tbk PT Matahari Department Store Tbk PT Perusahaan Gas Negara Persero Tbk PT 68 Semen Indonesia Persero Tbk PT Telekomunikasi Indonesia Persero Tbk PT Unilever Indonesia Tbk PT United Tractors Tbk PT Shares 658,000 $ 6,862,000 235,000 352,545 Value 470,951 2,215,999 808,241 423,910 11,927,244 IRELAND — 0.34% Bank of Irelandb CRH PLC Irish Bank Resolution Corp. Ltd.b Kerry Group PLC Class A Paddy Power Betfair PLC 3,051,475 82,407 64,486 29,140 7,285 631,278 2,531,867 1 2,494,444 855,378 6,512,968 8,225 31,960 1,294,499 INDIA — 1.70% Dr. Reddy’s Laboratories Ltd. ADR ICICI Bank Ltd. ADR Infosys Ltd. ADR Larsen & Toubro Ltd. GDRd Mahindra & Mahindra Ltd. GDR Reliance Industries Ltd. GDRc State Bank of India GDRa,d Tata Motors Ltd. ADR Wipro Ltd. ADRa Security 1,410,000 1,950,500 1,645,242 831,565 2,151,752 1,268,614 1,645,000 1,447,389 705,000 119,000 3,901,400 1,903,500 201,836 613,465 498,900 164,941 235,000 357,474 1,880,000 472,207 ISRAEL — 0.53% Bank Hapoalim BM Bank Leumi le-Israel BMb Bezeq The Israeli Telecommunication Corp. Ltd. Check Point Software Technologies Ltd.a,b Israel Chemicals Ltd. Mobileye NVa,b Nice Ltd. Teva Pharmaceutical Industries Ltd. 98,700 183,535 504,454 662,120 344,969 688,146 7,990 43,475 18,095 15,040 614,271 175,205 866,931 1,031,894 102,695 5,531,638 10,074,659 ITALY — 1.36% Assicurazioni Generali SpA CNH Industrial NV Enel SpA Eni SpA EXOR SpA Ferrari NV Fiat Chrysler Automobiles NVa Intesa Sanpaolo SpA Leonardo-Finmeccanica SpAb Luxottica Group SpA Mediobanca SpA Prysmian SpA Saipem SpAb Snam SpA Telecom Italia SpA/Milanob Tenaris SA 2016 144,835 142,451 766,438 262,260 30,785 15,043 119,856 1,505,890 68,177 27,365 104,575 31,960 809,746 194,779 1,426,980 48,255 iSHARES ANNUAL REPORT TO 1,907,910 1,016,308 3,529,413 4,011,966 1,199,035 680,275 772,007 3,317,406 778,400 1,328,386 732,636 747,666 353,959 1,127,176 1,218,333 645,376 SHAREHOLDERS Schedule of Investments (Continued) iSHARES® MSCI ACWI ex U.S. ETF July 31, 2016 Security Shares Terna Rete Elettrica Nazionale SpA UniCredit SpA Unione di Banche Italiane SpA 144,010 $ 548,587 157,987 Value 784,261 1,344,699 484,780 25,979,992 JAPAN — 16.58% Acom Co. Ltd.a,b Aeon Co. Ltd. AEON Financial Service Co. Ltd. Aeon Mall Co. Ltd. Aisin Seiki Co. Ltd. Ajinomoto Co. Inc. ANA Holdings Inc. Asahi Glass Co. Ltd. Asahi Group Holdings Ltd. Asahi Kasei Corp. Astellas Pharma Inc. Bandai Namco Holdings Inc. Bridgestone Corp. Canon Inc. Casio Computer Co. Ltd. Central Japan Railway Co. Chubu Electric Power Co. Inc. Chugai Pharmaceutical Co. Ltd. Chugoku Electric Power Co. Inc. (The) Credit Saison Co. Ltd. CYBERDYNE Inc.a,b Dai-ichi Life Insurance Co. Ltd. (The) Daiichi Sankyo Co. Ltd. Daikin Industries Ltd. Daito Trust Construction Co. Ltd. Daiwa House Industry Co. Ltd. Daiwa Securities Group Inc. Denso Corp. Dentsu Inc. East Japan Railway Co. Eisai Co. Ltd. Electric Power Development Co. Ltd. FANUC Corp. Fast Retailing Co. Ltd. Fuji Heavy Industries Ltd. FUJIFILM Holdings Corp. SCHEDULES OF INVESTMENTS 117,500 94,000 23,500 25,700 23,600 59,000 235,000 235,000 70,500 235,000 258,500 47,000 70,500 117,500 48,600 23,500 94,000 47,000 561,790 1,359,301 546,656 348,568 1,092,667 1,518,969 674,835 1,368,932 2,404,918 1,795,204 4,342,174 1,255,198 2,477,148 3,365,005 700,417 4,407,182 1,384,525 1,772,503 47,000 47,000 47,000 592,975 789,716 913,997 117,500 104,400 23,500 2,600 47,000 235,000 70,500 23,500 47,000 23,600 1,554,667 2,506,985 2,066,468 436,103 1,329,492 1,342,104 2,783,266 1,135,044 4,349,856 1,391,798 23,500 23,500 1,300 70,500 70,500 543,675 3,972,655 424,052 2,761,941 2,565,200 Security Fujitsu Ltd. GungHo Online Entertainment Inc.a Hachijuni Bank Ltd. (The) Hino Motors Ltd. Hitachi Construction Machinery Co. Ltd. Hitachi High-Technologies Corp. Hitachi Ltd. Hokuriku Electric Power Co. Honda Motor Co. Ltd. Hoya Corp. Hulic Co. Ltd. IHI Corp. INPEX Corp. Isetan Mitsukoshi Holdings Ltd. Isuzu Motors Ltd. ITOCHU Corp. Japan Exchange Group Inc. Japan Prime Realty Investment Corp. Japan Retail Fund Investment Corp. Japan Tobacco Inc. JFE Holdings Inc. JSR Corp. JTEKT Corp. JX Holdings Inc. Kakaku.com Inc. Kansai Electric Power Co. Inc. (The)a,b Kao Corp. Kawasaki Heavy Industries Ltd. KDDI Corp. Keio Corp. Keyence Corp. Kintetsu Group Holdings Co. Ltd. Kirin Holdings Co. Ltd. Kobe Steel Ltd. Komatsu Ltd. Konica Minolta Inc. Kubota Corp. Kuraray Co. Ltd. Kurita Water Industries Ltd. Kyocera Corp. Shares 235,000 $ Value 992,877 117,500 235,000 47,000 267,137 1,112,114 499,419 23,500 23,500 470,000 47,000 188,000 70,500 42,600 235,000 117,500 70,500 117,500 211,500 89,400 386,374 809,436 2,185,247 559,497 5,212,490 2,528,053 446,430 667,268 936,239 700,976 1,546,641 2,419,708 1,282,314 235 1,033,005 705 141,000 70,600 47,000 70,500 235,000 23,500 1,733,522 5,537,640 934,467 648,924 1,000,903 889,462 491,165 94,000 70,500 235,000 211,500 235,000 5,000 235,000 140,100 470,000 117,500 119,000 117,000 94,000 47,100 47,600 877,217 3,819,939 703,957 6,490,389 2,199,005 3,557,594 1,020,393 2,415,541 412,743 2,315,375 970,718 1,732,424 1,199,707 1,051,058 2,271,665 69 Schedule of Investments (Continued) iSHARES® MSCI ACWI ex U.S. ETF July 31, 2016 Security Kyushu Electric Power Co. Inc. M3 Inc. Mabuchi Motor Co. Ltd. Marubeni Corp. Mazda Motor Corp. MEIJI Holdings Co. Ltd. Mitsubishi Chemical Holdings Corp. Mitsubishi Corp. Mitsubishi Electric Corp. Mitsubishi Estate Co. Ltd. Mitsubishi Heavy Industries Ltd. Mitsubishi Motors Corp. Mitsubishi UFJ Financial Group Inc. Mitsui & Co. Ltd. Mitsui Chemicals Inc. Mitsui Fudosan Co. Ltd. Mitsui OSK Lines Ltd. Mizuho Financial Group Inc. MS&AD Insurance Group Holdings Inc. Murata Manufacturing Co. Ltd. Nabtesco Corp. NEC Corp. Nidec Corp. Nikon Corp. Nintendo Co. Ltd. Nippon Building Fund Inc. Nippon Steel & Sumitomo Metal Corp. Nippon Telegraph & Telephone Corp. Nissan Motor Co. Ltd. Nisshin Seifun Group Inc. Nissin Foods Holdings Co. Ltd. Nitto Denko Corp. Nomura Holdings Inc. Nomura Real Estate Holdings Inc. Nomura Real Estate Master Fund Inc. NTT DOCOMO Inc. NTT Urban Development Corp. Olympus Corp. 70 Shares Value 70,500 $ 23,500 24,100 235,000 70,500 24,290 664,517 758,989 1,109,938 1,103,400 1,064,534 2,550,231 235,500 188,000 235,000 135,000 471,000 94,000 1,292,337 3,262,507 2,791,750 2,541,006 2,036,397 442,094 1,418,800 188,000 235,000 51,000 235,000 2,608,500 7,226,556 2,216,890 1,008,928 1,121,418 506,757 4,253,114 67,100 23,500 23,800 342,000 23,500 47,000 13,500 253 1,968,118 2,940,796 643,042 947,729 2,163,463 670,020 2,832,780 1,555,252 94,086 1,790,191 94,000 258,500 85,625 23,500 23,800 400,500 4,476,889 2,552,588 1,417,823 1,339,123 1,604,935 1,833,581 23,800 414,297 470 164,500 47,000 47,000 778,250 4,413,258 505,840 1,641,801 Security Omron Corp. Ono Pharmaceutical Co. Ltd. Oriental Land Co. Ltd./Japan ORIX Corp. Osaka Gas Co. Ltd. Otsuka Holdings Co. Ltd. Panasonic Corp. Rakuten Inc. Resona Holdings Inc. Santen Pharmaceutical Co. Ltd. SBI Holdings Inc./Japan Secom Co. Ltd. Sekisui House Ltd. Seven & I Holdings Co. Ltd. Shikoku Electric Power Co. Inc. Shin-Etsu Chemical Co. Ltd. Shionogi & Co. Ltd. Shiseido Co. Ltd. Showa Shell Sekiyu KK SMC Corp./Japan SoftBank Group Corp. Sony Corp. Stanley Electric Co. Ltd. Sumitomo Chemical Co. Ltd. Sumitomo Corp. Sumitomo Dainippon Pharma Co. Ltd. Sumitomo Electric Industries Ltd. Sumitomo Heavy Industries Ltd. Sumitomo Mitsui Financial Group Inc. Sumitomo Mitsui Trust Holdings Inc. Sumitomo Rubber Industries Ltd. Suzuki Motor Corp. Sysmex Corp. T&D Holdings Inc. Taiyo Nippon Sanso Corp. Takeda Pharmaceutical Co. Ltd. TDK Corp. Terumo Corp. THK Co. Ltd. Tohoku Electric Power Co. Inc. Tokio Marine Holdings Inc. Tokyo Electric Power Co. Holdings Inc.b 2016 Shares Value 47,000 $ 72,000 23,500 164,500 235,000 47,000 258,500 117,500 305,500 70,500 40,300 23,800 70,500 94,000 70,500 47,000 23,500 47,000 70,500 3,200 117,500 141,000 47,000 235,000 127,100 1,577,597 2,601,512 1,492,755 2,349,885 954,354 2,244,406 2,550,066 1,347,722 1,237,083 1,181,134 443,955 1,801,866 1,189,045 3,946,743 740,874 3,239,577 1,226,765 1,330,409 632,185 848,827 6,538,542 4,515,412 1,155,223 1,054,789 1,344,357 47,000 94,000 235,000 883,271 1,315,734 1,132,751 164,500 5,309,714 470,000 23,500 47,000 23,500 94,000 40,300 94,000 23,800 47,600 23,500 70,500 70,500 1,591,355 335,698 1,462,029 1,646,387 978,202 392,049 4,208,148 1,483,944 2,059,872 470,527 909,411 2,779,138 211,500 833,742 iSHARES ANNUAL REPORT TO SHAREHOLDERS Schedule of Investments (Continued) iSHARES® MSCI ACWI ex U.S. ETF July 31, 2016 Security Shares Tokyo Electron Ltd. Tokyo Gas Co. Ltd. Tokyu Corp. Tokyu Fudosan Holdings Corp. TonenGeneral Sekiyu KK Toray Industries Inc. Toshiba Corp.b Toyo Seikan Group Holdings Ltd. Toyo Suisan Kaisha Ltd. Toyota Industries Corp. Toyota Motor Corp. Toyota Tsusho Corp. Unicharm Corp. United Urban Investment Corp. USS Co. Ltd. West Japan Railway Co. Yahoo Japan Corp. Yakult Honsha Co. Ltd. Yamada Denki Co. Ltd. Yamaha Motor Co. Ltd. Yamato Holdings Co. Ltd. Yokogawa Electric Corp. 23,800 $ 235,000 68,000 141,000 14,000 235,000 471,000 70,500 23,500 23,600 282,000 47,000 70,500 705 70,500 23,500 220,900 23,500 145,400 47,000 70,500 47,000 Value 2,096,797 1,006,635 561,994 847,500 126,906 2,157,042 1,237,188 1,385,442 1,050,202 1,076,548 16,218,061 1,048,368 1,461,111 1,315,963 1,205,898 1,468,678 980,724 1,132,751 768,959 806,225 1,739,369 614,988 316,780,562 MALAYSIA — 0.65% Alliance Financial Group Bhd Axiata Group Bhd Berjaya Sports Toto Bhd British American Tobacco Malaysia Bhd CIMB Group Holdings Bhd DiGi.Com Bhda Genting Bhd Genting Malaysia Bhd Hong Leong Bank Bhd Hong Leong Financial Group Bhd IHH Healthcare Bhd IOI Corp. Bhd IOI Properties Group Bhd Kuala Lumpur Kepong Bhd Lafarge Malaysia Bhd Malayan Banking Bhda Malaysia Airports Holdings Bhd Maxis Bhda Petronas Chemicals Group Bhd Petronas Dagangan Bhd SCHEDULES OF INVESTMENTS 517,000 305,500 103,006 505,506 427,047 83,002 23,500 540,500 446,500 258,500 235,000 94,000 70,500 282,000 388,700 555,515 70,500 117,500 305,500 235,000 258,500 258,500 47,000 284,967 582,925 544,071 522,017 247,672 302,980 263,606 453,084 403,931 322,077 400,432 229,487 601,919 343,508 382,304 415,962 268,571 Security Petronas Gas Bhd PPB Group Bhd Public Bank Bhd RHB Bank Bhda Sapurakencana Petroleum Bhda Sime Darby Bhd Tenaga Nasional Bhd UMW Holdings Bhd YTL Corp. Bhd Shares 141,000 $ 70,500 283,040 183,895 564,000 235,000 376,000 117,500 376,053 Value 768,304 277,116 1,355,922 229,953 198,138 428,375 1,328,309 164,538 154,283 12,490,006 MEXICO — 0.87% Alfa SAB de CV America Movil SAB de CV Cemex SAB de CV CPOb Fibra Uno Administracion SA de CV Fomento Economico Mexicano SAB de CV Gentera SAB de CV Grupo Aeroportuario del Sureste SAB de CV Series B Grupo Financiero Banorte SAB de CV Grupo Financiero Inbursa SAB de CV Series O Grupo Financiero Santander Mexico SAB de CV Series B Grupo Mexico SAB de CV Series B Grupo Televisa SAB Kimberly-Clark de Mexico SAB de CV Series A OHL Mexico SAB de CVb Wal-Mart de Mexico SAB de CV 470,000 3,431,000 1,934,927 769,840 1,973,991 1,475,715 298,900 610,028 258,500 211,500 2,314,349 393,273 70,500 1,084,210 314,100 1,721,479 329,000 529,055 282,000 514,130 376,029 282,000 908,125 1,497,990 399,500 141,000 728,500 904,255 191,444 1,666,043 16,553,927 NETHERLANDS — 2.31% Aegon NV AerCap Holdings NVa,b Akzo Nobel NV Altice NV Class Aa,b Altice NV Class Bb ASML Holding NV Gemalto NVa Heineken NV ING Groep NV 248,395 18,330 36,895 36,425 19,160 44,492 9,635 27,965 454,020 1,012,742 669,228 2,391,305 540,721 283,355 4,922,582 635,363 2,640,597 5,077,081 71 Schedule of Investments (Continued) iSHARES® MSCI ACWI ex U.S. ETF July 31, 2016 Security Koninklijke Ahold Delhaize NV Koninklijke DSM NV Koninklijke KPN NV Koninklijke Philips NV NXP Semiconductors NVb OCI NVb RELX NV Unilever NV CVA Wolters Kluwer NV Shares 196,777 $ 27,029 403,730 118,242 28,671 21,957 131,595 185,346 33,605 Value 4,700,182 1,730,695 1,328,680 3,156,191 2,410,944 335,400 2,380,251 8,587,953 1,413,903 44,217,173 NEW ZEALAND — 0.14% Auckland International Airport Ltd. Fletcher Building Ltd. Spark New Zealand Ltd. 269,545 78,727 264,476 1,434,641 550,178 752,470 2,737,289 NORWAY — 0.41% DNB ASA Gjensidige Forsikring ASA Norsk Hydro ASA Orkla ASA Schibsted ASA Statoil ASA Telenor ASA Yara International ASA 113,975 38,472 177,425 90,240 11,280 132,362 64,390 24,223 1,256,406 649,962 758,957 838,879 355,291 2,086,891 1,077,129 788,846 Security Shares Eurocash SA KGHM Polska Miedz SA mBank SAb Orange Polska SA Polski Koncern Naftowy ORLEN SA Powszechna Kasa Oszczednosci Bank Polski SAb Powszechny Zaklad Ubezpieczen SA Synthos SAb Tauron Polska Energia SAb 27,910 $ 11,045 2,908 90,005 374,761 222,743 226,817 124,551 43,823 702,631 83,895 512,632 44,650 175,619 305,821 323,268 178,550 241,830 4,848,895 PORTUGAL — 0.12% Banco Espirito Santo SA Registeredb EDP – Energias de Portugal SA Galp Energia SGPS SA Jeronimo Martins SGPS SA 1 256,669 48,569 43,284 11,059 566 1,773,090 14,710 1,787,800 PHILIPPINES — 0.34% Ayala Land Inc. Bank of the Philippine Islands JG Summit Holdings Inc. Jollibee Foods Corp. Metropolitan Bank & Trust Co. Security Bank Corp. 1,433,500 596,005 171,550 279,820 836,638 108,100 1,201,937 1,214,529 304,063 1,514,628 1,686,240 502,524 6,423,921 POLAND — 0.25% Alior Bank SAb Bank Handlowy w Warszawie SA Bank Millennium SAb Bank Pekao SA Cyfrowy Polsat SAb 72 35,928 9,870 186,190 11,750 117,327 465,819 174,264 218,935 372,108 709,986 — 880,578 663,154 724,825 2,268,557 QATAR — 0.20% Ezdan Holding Group QSC Masraf Al Rayan QSC Ooredoo QSC Qatar National Bank SAQ 102,546 119,284 15,434 38,337 7,812,361 PERU — 0.09% Credicorp Ltd. Southern Copper Corp. Value 553,625 1,195,608 402,639 1,595,993 3,747,865 RUSSIA — 0.79% Gazprom PJSC ADR Lukoil PJSC ADR Magnit PJSC GDRd MegaFon PJSC GDRd MMC Norilsk Nickel PJSC ADR Mobile TeleSystems PJSC ADR Novatek OJSC GDRd Rosneft PJSC GDRd RusHydro PJSC ADR Sberbank of Russia PJSC ADR Sistema JSFC GDRd Surgutneftegas OJSC ADR Tatneft PJSC ADR 621,607 54,757 43,240 40,890 76,911 93,530 14,884 96,872 196,318 249,205 48,410 192,243 22,122 2,529,940 2,379,630 1,659,119 403,993 1,132,130 831,482 1,485,423 468,182 203,189 2,168,333 394,057 906,503 624,947 15,186,928 SINGAPORE — 0.93% Ascendas REITa CapitaLand Ltd. 2016 518,716 258,600 iSHARES ANNUAL REPORT TO 946,210 610,351 SHAREHOLDERS Schedule of Investments (Continued) iSHARES® MSCI ACWI ex U.S. ETF July 31, 2016 Security Shares ComfortDelGro Corp. Ltd. DBS Group Holdings Ltd.a Genting Singapore PLC Global Logistic Properties Ltd.a Golden Agri-Resources Ltd. Hutchison Port Holdings Trust Jardine Matheson Holdings Ltd. Keppel Corp. Ltd.a Noble Group Ltd.a,b Oversea-Chinese Banking Corp. Ltd. SembCorp Industries Ltd.a Sembcorp Marine Ltd.a Singapore Airlines Ltd. Singapore Telecommunications Ltd. United Overseas Bank Ltd. Value 235,000 $ 211,500 1,577,900 470,000 705,000 823,800 23,500 211,500 1,880,398 493,411 2,426,636 922,233 670,129 188,966 391,305 1,393,550 826,725 226,807 259,075 94,000 353,500 117,500 1,658,882 193,865 371,108 960,576 940,000 188,000 2,925,471 2,547,539 SCHEDULES OF INVESTMENTS Shoprite Holdings Ltd. Sibanye Gold Ltd. Standard Bank Group Ltd. Steinhoff International Holdings NV Class H Tiger Brands Ltd. Truworths International Ltd. Woolworths Holdings Ltd./ South Africa Shares Value 40,420 $ 77,080 120,790 592,757 356,960 1,207,203 274,812 22,090 88,631 1,739,901 621,222 570,734 119,854 773,176 32,589,256 17,753,764 SOUTH AFRICA — 1.71% African Bank Investments Ltd.a,b Anglo American Platinum Ltd.b AngloGold Ashanti Ltd.b Aspen Pharmacare Holdings Ltd. Bid Corp. Ltd.b Bidvest Group Ltd. (The) Brait SEb FirstRand Ltd. Foschini Group Ltd. (The) Gold Fields Ltd. Growthpoint Properties Ltd. Impala Platinum Holdings Ltd.b Imperial Holdings Ltd. Investec Ltd. MMI Holdings Ltd./South Africa Mr. Price Group Ltd. MTN Group Ltd. Naspers Ltd. Class N PSG Group Ltd. Rand Merchant Investment Holdings Ltd. Redefine Properties Ltd. Remgro Ltd. RMB Holdings Ltd. Sappi Ltd.b Sasol Ltd. Security 334,618 10,578 60,019 54,071 30,550 34,075 45,120 361,195 47,000 126,205 707,950 76,668 25,380 56,635 211,112 52,875 176,015 49,735 18,330 241 335,737 1,312,383 1,462,643 570,804 392,048 406,057 1,265,993 505,158 780,463 1,345,631 337,355 303,432 341,738 352,691 873,050 1,781,100 7,820,195 262,105 195,990 1,773,115 57,810 136,535 102,225 71,440 626,297 1,533,553 1,085,058 612,600 520,748 1,900,223 SOUTH KOREA — 3.19% AmorePacific Corp. AmorePacific Group BGF retail Co. Ltd. BNK Financial Group Inc. Celltrion Inc.a,b CJ CheilJedang Corp. CJ Corp. Coway Co. Ltd. Daelim Industrial Co. Ltd. DGB Financial Group Inc. Dongbu Insurance Co. Ltd. E-MART Inc. GS Engineering & Construction Corp.b GS Holdings Corp. Hana Financial Group Inc. Hankook Tire Co. Ltd. Hanmi Pharm Co. Ltd. Hanmi Science Co. Ltd. Hanssem Co. Ltd. Hyosung Corp. Hyundai Department Store Co. Ltd. Hyundai Development Co. – Engineering & Construction Hyundai Engineering & Construction Co. Ltd. Hyundai Glovis Co. Ltd. Hyundai Heavy Industries Co. Ltd.b Hyundai Marine & Fire Insurance Co. Ltd. Hyundai Mobis Co. Ltd. Hyundai Motor Co. 5,640 6,815 1,880 25,690 9,331 1,660 1,410 5,875 3,104 18,162 5,170 1,910 1,953,596 879,139 334,830 202,052 867,167 583,145 252,381 449,482 232,769 146,087 293,081 278,789 7,612 5,103 31,380 6,606 969 1,939 2,585 2,350 195,031 219,126 771,789 319,640 528,553 249,267 396,929 291,613 1,645 182,101 5,791 229,024 7,755 2,350 254,773 352,453 4,935 552,910 7,066 7,285 15,275 191,135 1,658,416 1,800,027 73 Schedule of Investments (Continued) iSHARES® MSCI ACWI ex U.S. ETF July 31, 2016 Security Shares Hyundai Steel Co. Industrial Bank of Korea Kakao Corp.a Kangwon Land Inc. KB Financial Group Inc. Kia Motors Corp. Korea Aerospace Industries Ltd. Class A Korea Electric Power Corp. Korea Gas Corp. Korea Investment Holdings Co. Ltd. Korea Zinc Co. Ltd. KT Corp. KT&G Corp. LG Chem Ltd. LG Corp. LG Display Co. Ltd. LG Electronics Inc. LG Household & Health Care Ltd. LG Uplus Corp. Lotte Chemical Corp. Lotte Confectionery Co. Ltd. Lotte Shopping Co. Ltd. Mirae Asset Securities Co. Ltd. NAVER Corp. NCsoft Corp. OCI Co. Ltd.a,b Orion Corp./Republic of Korea POSCO S-1 Corp. S-Oil Corp. Samsung C&T Corp. Samsung Electro-Mechanics Co. Ltd. Samsung Electronics Co. Ltd. Samsung Fire & Marine Insurance Co. Ltd. Samsung Life Insurance Co. Ltd. Samsung SDI Co. Ltd. Samsung SDS Co. Ltd. Samsung Securities Co. Ltd. Shinhan Financial Group Co. Ltd. SK Holdings Co. Ltd. 6,345 $ 30,315 3,525 20,915 34,681 27,260 286,620 320,701 286,053 765,536 1,089,828 1,025,764 13,395 28,200 5,476 963,833 1,543,240 206,789 11,515 1,175 25,110 11,972 4,939 11,750 25,145 12,690 482,126 533,924 711,728 1,293,230 1,073,648 666,094 695,884 606,093 1,175 50,995 2,585 2,350 1,410 19,964 3,055 1,645 2,820 244 6,896 3,760 6,345 7,582 1,057,358 498,500 700,395 397,558 242,941 473,190 1,936,392 368,607 234,129 200,620 1,394,406 340,704 433,328 917,164 5,878 11,280 289,663 15,497,853 3,290 6,580 5,875 3,525 6,345 36,023 5,640 782,739 571,561 553,330 494,063 214,115 1,284,756 1,049,806 74 Value Security Shares SK Hynix Inc. SK Innovation Co. Ltd. SK Telecom Co. Ltd. Woori Bank Yuhan Corp. 63,235 $ 6,580 2,350 32,921 877 Value 1,941,958 857,635 482,525 296,837 239,577 60,968,106 SPAIN — 2.07% Abertis Infraestructuras SA ACS Actividades de Construccion y Servicios SA Aena SAc Amadeus IT Holding SA Class A Banco Bilbao Vizcaya Argentaria SA Banco de Sabadell SA Banco Popular Espanol SAa Banco Santander SA Bankia SA CaixaBank SA Distribuidora Internacional de Alimentacion SA Ferrovial SA Gas Natural SDG SA Grifols SA Iberdrola SA Iberdrola SA Newb Industria de Diseno Textil SA International Consolidated Airlines Group SA Red Electrica Corp. SA Repsol SA Telefonica SA Zardoya Otis SA 62,216 978,893 39,781 6,111 61,247 1,141,043 881,538 2,876,216 663,991 623,387 544,772 1,548,180 723,645 301,056 3,879,606 852,557 762,708 6,568,374 555,122 756,466 93,863 81,267 21,872 30,792 606,059 13,468 124,550 585,795 1,682,585 452,602 675,235 4,164,625 92,547 4,309,265 114,210 32,732 137,620 442,035 83,612 616,482 749,987 1,735,151 4,334,074 820,923 39,471,794 SWEDEN — 1.92% Alfa Laval AB Assa Abloy AB Atlas Copco AB Class A Electrolux AB Class B Getinge AB Class B Hennes & Mauritz AB Class B Hexagon AB Class B Husqvarna AB Class B Investor AB Class B Lundin Petroleum ABa,b 2016 74,025 117,030 96,848 43,475 40,227 110,215 27,730 175,153 53,110 25,145 iSHARES ANNUAL REPORT TO 1,170,222 2,575,554 2,727,233 1,180,948 817,890 3,338,713 1,096,735 1,507,604 1,834,770 417,247 SHAREHOLDERS Schedule of Investments (Continued) iSHARES® MSCI ACWI ex U.S. ETF July 31, 2016 Security Shares Millicom International Cellular SA SDR Nordea Bank AB Sandvik AB Securitas AB Class B Skandinaviska Enskilda Banken AB Class A Skanska AB Class B Svenska Cellulosa AB SCA Class B Svenska Handelsbanken AB Class A Swedbank AB Class A Tele2 AB Class B Telefonaktiebolaget LM Ericsson Class B Telia Co. AB Volvo AB Class B Value 10,161 $ 309,730 169,905 93,864 544,165 2,767,585 1,825,801 1,548,744 133,245 75,688 1,171,870 1,613,384 55,852 1,665,729 137,968 76,845 57,878 1,665,304 1,619,135 490,377 318,660 264,845 149,225 2,382,463 1,211,967 1,594,830 SCHEDULES OF INVESTMENTS Sonova Holding AG Registered Swatch Group AG (The) Bearera Swiss Life Holding AG Registered Swiss Prime Site AG Registered Swiss Re AG Swisscom AG Registered Syngenta AG Registered UBS Group AG Zurich Insurance Group AG Shares 6,345 $ 4,310 4,073 7,051 40,890 2,820 11,046 414,161 15,220 Value 871,867 1,133,190 933,488 649,689 3,441,876 1,392,128 4,355,767 5,720,989 3,667,792 121,832,091 36,768,270 SWITZERLAND — 6.37% ABB Ltd. Registered Actelion Ltd. Registered Adecco Group AG Registered Aryzta AG Barry Callebaut AG Registered Chocoladefabriken Lindt & Sprungli AG Participation Certificates Cie. Financiere Richemont SA Class A Registered Credit Suisse Group AG Registered Dufry AG Registeredb Galenica AG Registered Geberit AG Registered Givaudan SA Registered Julius Baer Group Ltd. Kuehne + Nagel International AG Registered LafargeHolcim Ltd. Registered Lonza Group AG Registered Nestle SA Registered Novartis AG Registered Partners Group Holding AG Roche Holding AG SGS SA Registered Security 268,370 13,395 19,181 10,810 928 5,720,339 2,382,535 1,055,853 407,703 1,217,553 235 1,386,000 60,007 3,660,213 197,731 3,525 470 5,360 870 33,809 2,281,236 407,046 607,895 2,074,230 1,793,202 1,391,611 12,938 51,445 3,760 348,145 248,630 1,880 77,080 470 1,820,651 2,455,009 710,799 27,989,929 20,658,067 862,724 19,739,562 1,043,148 TAIWAN — 2.76% Acer Inc. Advanced Semiconductor Engineering Inc. Asia Cement Corp. AU Optronics Corp. Cathay Financial Holding Co. Ltd. Chang Hwa Commercial Bank Ltd. China Development Financial Holding Corp. China Steel Corp. Chunghwa Telecom Co. Ltd. Compal Electronics Inc. CTBC Financial Holding Co. Ltd. Delta Electronics Inc. E.Sun Financial Holding Co. Ltd. Far EasTone Telecommunications Co. Ltd. First Financial Holding Co. Ltd. Formosa Chemicals & Fibre Corp. Formosa Petrochemical Corp. Formosa Plastics Corp. Fubon Financial Holding Co. Ltd. Highwealth Construction Corp. Hon Hai Precision Industry Co. Ltd. HTC Corp. Hua Nan Financial Holdings Co. Ltd. Innolux Corp. MediaTek Inc. 1,232,792 586,989 705,218 486,440 1,735,000 839,466 444,947 703,826 1,022,318 1,148,078 1,020,685 548,343 1,880,000 1,217,288 705,000 705,000 1,925,293 235,000 1,034,941 457,000 840,811 2,506,578 442,792 1,061,465 1,236,726 577,075 470,000 1,594,278 1,079,191 883,962 240,340 235,000 241,960 470,000 223,080 625,638 668,421 589,684 583,764 339,969 1,822,839 278,000 5,019,188 828,174 1,863,885 1,243,688 60,000 1,015,932 459,716 457,664 75 Schedule of Investments (Continued) iSHARES® MSCI ACWI ex U.S. ETF July 31, 2016 Security Mega Financial Holding Co. Ltd. Nan Ya Plastics Corp. Pegatron Corp. Quanta Computer Inc. Shin Kong Financial Holding Co. Ltd. Siliconware Precision Industries Co. Ltd. SinoPac Financial Holdings Co. Ltd. Synnex Technology International Corp. Taishin Financial Holding Co. Ltd. Taiwan Business Bankb Taiwan Cement Corp. Taiwan Cooperative Financial Holding Co. Ltd. Taiwan Mobile Co. Ltd. Taiwan Semiconductor Manufacturing Co. Ltd. Uni-President Enterprises Corp. United Microelectronics Corp. Vanguard International Semiconductor Corp. Yuanta Financial Holding Co. Ltd. Shares 1,013,195 $ 473,840 470,000 470,000 Value 793,468 896,530 1,152,805 955,518 800,149 162,421 472,218 710,036 1,596,793 515,208 235,000 277,527 1,514,141 3,129,880 470,000 607,117 824,556 499,107 2,471,018 470,000 1,157,213 1,619,522 2,820,000 559,972 2,350,000 15,238,230 1,143,695 876,014 479,000 867,281 1,400,067 491,205 76 Shares Siam Cement PCL (The) NVDR Siam Commercial Bank PCL (The) NVDR Thai Oil PCL NVDR TMB Bank PCL NVDR True Corp. PCL NVDRa 70,800 $ 235,000 151,000 3,290,000 1,270,434 Value 1,036,692 1,069,409 263,372 213,477 326,454 9,401,196 52,732,852 THAILAND — 0.49% Advanced Info Service PCL NVDR Airports of Thailand PCL NVDRa BEC World PCL NVDR BTS Group Holdings PCL NVDR Central Pattana PCL NVDR Charoen Pokphand Foods PCL NVDR CP ALL PCL NVDR Glow Energy PCL NVDR Indorama Ventures PCL NVDR Minor International PCL NVDR PTT Exploration & Production PCL NVDR PTT Global Chemical PCL NVDR PTT PCL NVDR Security 94,000 70,500 306,900 658,000 141,000 480,390 799,526 217,641 177,583 232,773 737,900 757,200 267,500 430,888 309,420 593,201 1,125,039 658,574 411,341 362,012 149,399 235,601 70,600 353,874 410,932 668,906 TURKEY — 0.27% Akbank TAS Anadolu Efes Biracilik ve Malt Sanayii AS Arcelik AS BIM Birlesik Magazalar AS Coca-Cola Icecek AS Emlak Konut Gayrimenkul Yatirim Ortakligi AS Haci Omer Sabanci Holding AS KOC Holding AS Tupras Turkiye Petrol Rafinerileri AS Turk Hava Yollari AOa,b Turk Telekomunikasyon AS Turkiye Garanti Bankasi AS Turkiye Halk Bankasi AS Turkiye Is Bankasi Class C Ulker Biskuvi Sanayi AS 131,600 338,886 59,975 136,320 37,421 19,975 405,964 930,941 690,815 247,304 452,662 58,045 45,463 404,196 172,962 194,614 22,355 95,450 99,222 215,965 57,575 91,449 24,440 477,356 165,034 200,425 529,413 151,343 140,684 161,590 5,211,527 UNITED ARAB EMIRATES — 0.20% Abu Dhabi Commercial Bank PJSC 303,523 Aldar Properties PJSC 813,127 b Arabtec Holding PJSC 424,255 DP World Ltd. 26,422 Emaar Properties PJSC 591,184 Emirates Telecommunications Group Co. PJSC 173,437 561,911 637,556 167,480 448,910 1,097,676 944,363 3,857,896 UNITED KINGDOM — 13.59% 3i Group PLC Aggreko PLC Anglo American PLC ARM Holdings PLC Ashtead Group PLC Associated British Foods PLC 2016 122,007 31,020 169,200 156,275 50,055 27,026 iSHARES ANNUAL REPORT TO 999,470 529,643 1,865,692 3,469,172 794,838 965,596 SHAREHOLDERS Schedule of Investments (Continued) iSHARES® MSCI ACWI ex U.S. ETF July 31, 2016 Security Shares AstraZeneca PLC Auto Trader Group PLCc Aviva PLC BAE Systems PLC Barclays PLC Barratt Developments PLC Berkeley Group Holdings PLC BHP Billiton PLC BP PLC British American Tobacco PLC British Land Co. PLC (The) BT Group PLC Bunzl PLC Burberry Group PLC Capita PLC Carnival PLC Centrica PLC Coca-Cola HBC AG Compass Group PLC Diageo PLC Experian PLC Fresnillo PLC G4S PLC GlaxoSmithKline PLC Glencore PLC HSBC Holdings PLC ICAP PLC Imperial Brands PLC InterContinental Hotels Group PLC ITV PLC J Sainsbury PLCa Johnson Matthey PLC Kingfisher PLC Land Securities Group PLC Legal & General Group PLC Lloyds Banking Group PLC London Stock Exchange Group PLC Marks & Spencer Group PLC Mediclinic International PLC National Grid PLC Next PLC Old Mutual PLC Pearson PLC SCHEDULES OF INVESTMENTS 137,710 $ 112,565 442,745 294,505 1,830,885 92,120 12,455 231,945 1,984,105 211,970 153,773 998,750 70,531 48,175 127,418 31,625 640,673 28,905 243,225 285,760 157,215 18,800 272,632 532,275 1,286,451 2,089,855 139,120 121,730 Value 9,229,643 554,021 2,299,014 2,088,017 3,756,904 535,096 443,675 2,909,236 11,244,496 13,577,718 1,369,944 5,481,189 2,214,681 844,298 1,624,060 1,529,222 2,050,849 599,068 4,637,274 8,198,913 3,083,007 481,992 674,357 11,929,125 3,189,730 13,737,546 821,958 6,438,171 44,111 510,890 218,550 38,018 378,115 114,775 964,675 6,425,605 1,769,870 1,329,485 650,849 1,653,611 1,688,305 1,667,112 2,634,604 4,534,374 42,065 254,557 37,365 486,450 23,858 699,427 96,474 1,549,830 1,079,155 532,806 6,994,662 1,591,733 1,955,694 1,129,741 Security Persimmon PLC Petrofac Ltd. Prudential PLC Randgold Resources Ltd. Reckitt Benckiser Group PLC RELX PLC Rio Tinto PLC Rolls-Royce Holdings PLC Royal Bank of Scotland Group PLCb Royal Dutch Shell PLC Class A Royal Dutch Shell PLC Class B SABMiller PLC Sage Group PLC (The) Shire PLC Sky PLC Smith & Nephew PLC SSE PLC Standard Chartered PLC Standard Life PLC Taylor Wimpey PLC Tesco PLCb TUI AG Unilever PLC United Utilities Group PLC Vedanta Ltd. ADR Vodafone Group PLC Weir Group PLC (The) Wm Morrison Supermarkets PLC Wolseley PLC Worldpay Group PLCb,c WPP PLC Shares 62,533 $ 31,188 327,355 12,866 80,418 133,297 131,600 195,755 348,975 435,062 427,876 107,923 248,929 94,895 113,740 146,640 132,540 364,258 262,871 306,465 954,351 44,654 148,285 68,986 173,001 2,959,825 27,025 294,292 48,645 89,770 182,842 Value 1,400,633 308,699 5,802,302 1,516,045 7,817,773 2,539,641 4,300,865 2,055,840 891,455 11,229,165 11,373,184 6,324,794 2,354,835 6,137,076 1,390,071 2,420,046 2,667,757 2,924,000 1,057,163 629,465 1,976,664 583,682 6,956,686 931,498 1,681,570 9,020,766 525,658 725,979 2,718,424 349,697 4,122,054 259,662,933 TOTAL COMMON STOCKS (Cost: $2,120,763,544) 1,879,825,507 PREFERRED STOCKS — 1.24% BRAZIL — 0.67% Banco Bradesco SA Centrais Eletricas Brasileiras SA Class B Cia. Brasileira de Distribuicao Cia. Energetica de Minas Gerais Cia. Paranaense de Energia Class B 376,573 3,303,926 70,500 23,500 110,400 485,936 356,746 310,462 34,400 342,148 77 Schedule of Investments (Continued) iSHARES® MSCI ACWI ex U.S. ETF July 31, 2016 Security Gerdau SA Itau Unibanco Holding SA Itausa-Investimentos Itau SA Lojas Americanas SA Petroleo Brasileiro SA Telefonica Brasil SA Vale SA Shares 117,500 $ 300,943 466,235 90,400 399,500 29,600 211,500 Value 281,718 3,145,918 1,205,830 535,565 1,467,041 450,813 982,123 12,868,226 CHILE — 0.01% Sociedad Quimica y Minera de Chile SA Series B 9,701 241,458 Security Shares Value SHORT-TERM INVESTMENTS — 1.84% MONEY MARKET FUNDS — 1.84% BlackRock Cash Funds: Institutional, SL Agency Shares 0.57%e,f,g 32,738,603 $ BlackRock Cash Funds: Prime, SL Agency Shares 0.47%e,f,g 1,808,953 BlackRock Cash Funds: Treasury, SL Agency Shares 0.28%e,f 559,462 32,738,603 1,808,953 559,462 241,458 COLOMBIA — 0.06% Bancolombia SA 131,024 1,118,849 1,118,849 GERMANY — 0.35% Henkel AG & Co. KGaA Porsche Automobil Holding SE Volkswagen AG ITALY — 0.02% Telecom Italia SpA/Milano 26,444 17,012 17,719 621,822 1,880 4,230 1,645 TOTAL SHORT-TERM INVESTMENTS (Cost: $35,107,018) 35,107,018 3,294,211 891,640 2,492,636 TOTAL INVESTMENTS IN SECURITIES — 101.45% (Cost: $2,178,371,625)h Other Assets, Less Liabilities — (1.45)% 6,678,487 NET ASSETS — 100.00% 432,857 432,857 SOUTH KOREA — 0.13% Hyundai Motor Co. Hyundai Motor Co. Series 2 Samsung Electronics Co. Ltd. 35,107,018 1,938,755,452 (27,651,769) $1,911,103,683 ADR — American Depositary Receipts CPO — Certificates of Participation (Ordinary) GDR — Global Depositary Receipts NVDR — Non-Voting Depositary Receipts SDR — Swedish Depositary Receipts 163,639 379,516 1,857,720 a All or a portion of this security represents a security on loan. See Note 1. b 2,400,875 d This security may be resold to qualified foreign investors and foreign Non-income earning security. c This security may be resold to qualified institutional buyers under Rule 144A of the Securities Act of 1933. institutional buyers under Regulation S of the Securities Act of 1933. TOTAL PREFERRED STOCKS (Cost: $22,458,530) 23,740,752 e Affiliated money market fund. f The rate quoted is the annualized seven-day yield of the fund at period end. g All or a portion of this security represents an investment of securities lending collateral. See Note 1. h The cost of investments for federal income tax purposes was RIGHTS — 0.01% HONG KONG — 0.01% China Resources Beer Holdings Co. Ltd.b $2,215,137,108. Net unrealized depreciation was $276,381,656, of which $118,270,766 represented gross unrealized appreciation on securities and $394,652,422 represented gross unrealized depreciation on securities. 120,666 48,515 48,515 SPAIN — 0.00% Zardoya Otis SAb 83,612 33,660 33,660 TOTAL RIGHTS (Cost: $42,533) 78 82,175 2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS Schedule of Investments (Continued) iSHARES® MSCI ACWI ex U.S. ETF July 31, 2016 Schedule 1 — 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 July 31, 2016. The breakdown of the Fund’s investments into major categories is disclosed in the schedule of investments above. Investments: Assets: Common stocks Preferred stocks Rights Money market funds Total Level 1 Level 2 Level 3 Total $1,878,841,816 23,740,752 82,175 35,107,018 $983,448 — — — $ 243 — — — $1,879,825,507 23,740,752 82,175 35,107,018 $1,937,771,761 $983,448 $ 243 $1,938,755,452 See notes to financial statements. SCHEDULES OF INVESTMENTS 79 Schedule of Investments iSHARES® MSCI EAFE ETF July 31, 2016 Security Shares Value COMMON STOCKS — 98.82% AUSTRALIA — 7.45% AGL Energy Ltd. Alumina Ltd. Amcor Ltd./Australia AMP Ltd. APA Group Aristocrat Leisure Ltd. Asciano Ltd. ASX Ltd. Aurizon Holdings Ltd. AusNet Services Australia & New Zealand Banking Group Ltd. Bank of Queensland Ltd. Bendigo & Adelaide Bank Ltd. BHP Billiton Ltd. Boral Ltd. Brambles Ltd. Caltex Australia Ltd. Challenger Ltd./Australia CIMIC Group Ltd. Coca-Cola Amatil Ltd. Cochlear Ltd. Commonwealth Bank of Australia Computershare Ltd. Crown Resorts Ltd. CSL Ltd. Dexus Property Group Domino’s Pizza Enterprises Ltd. DUET Group Flight Centre Travel Group Ltd.a Fortescue Metals Group Ltd.a Goodman Group GPT Group (The) Harvey Norman Holdings Ltd. Healthscope Ltd. Incitec Pivot Ltd. Insurance Australia Group Ltd. James Hardie Industries PLC LendLease Group 80 3,261,324 $ 12,170,970 5,598,970 14,307,798 5,424,379 2,650,984 2,778,169 942,416 10,054,869 8,593,128 51,013,069 12,256,972 63,917,563 63,181,665 40,032,378 32,117,191 19,320,657 35,599,277 39,739,454 11,560,235 14,160,598 1,778,549 2,161,127 15,596,661 3,660,857 7,615,379 1,309,613 2,722,200 495,038 2,723,164 285,388 278,109,765 14,274,861 16,672,029 231,394,793 19,115,323 77,849,520 33,006,512 19,655,576 11,001,655 19,083,009 28,790,350 8,283,026 2,287,287 1,742,202 2,236,546 4,626,964 486,957,969 15,437,457 17,346,503 200,586,628 34,358,391 308,416 11,008,473 17,627,750 22,507,201 269,511 7,625,374 8,565,368 8,654,432 2,690,449 8,328,162 8,211,824 11,738,743 2,167,595 2,676,400 6,593,858 25,674,797 49,086,211 36,901,461 9,897,198 18,736,265 17,912,808 53,889,067 35,915,074 27,278,591 Security Macquarie Group Ltd. Medibank Pvt Ltd. Mirvac Group National Australia Bank Ltd. Newcrest Mining Ltd.b Oil Search Ltd. Orica Ltd. Origin Energy Ltd. Platinum Asset Management Ltd. Qantas Airways Ltd. QBE Insurance Group Ltd. Ramsay Health Care Ltd. REA Group Ltd. Rio Tinto Ltd. Santos Ltd. Scentre Group Seek Ltd. Sonic Healthcare Ltd. South32 Ltd.b Stockland Suncorp Group Ltd. Sydney Airport Tabcorp Holdings Ltd. Tatts Group Ltd. Telstra Corp. Ltd. TPG Telecom Ltd. Transurban Group Treasury Wine Estates Ltd. Vicinity Centres Vocus Communications Ltd. Wesfarmers Ltd. Westfield Corp. Westpac Banking Corp. Woodside Petroleum Ltd. Woolworths Ltd. Shares Value 1,481,426 $ 13,387,841 17,688,544 12,805,030 3,712,835 6,602,134 1,809,989 8,418,098 83,759,998 31,238,564 29,577,189 258,299,553 70,548,501 35,577,277 19,465,901 35,189,962 1,150,930 2,529,848 6,630,252 695,253 265,231 2,066,834 7,706,037 25,786,535 1,591,362 1,886,892 25,853,151 11,509,662 6,223,249 5,190,602 3,969,703 7,000,132 20,738,774 1,547,546 9,841,390 3,603,954 16,373,142 2,473,754 5,456,600 9,565,241 16,179,158 3,587,871 6,140,517 5,301,072 6,076,082 55,281,370 41,634,764 13,157,702 77,853,659 25,712,112 103,874,990 20,198,894 32,956,357 36,057,174 44,089,507 63,523,633 29,825,083 14,753,974 21,973,458 90,949,649 15,090,803 93,948,147 26,433,136 43,057,644 16,789,977 178,043,098 77,644,251 382,312,742 72,346,280 109,256,803 4,456,198,389 AUSTRIA — 0.17% Andritz AG Erste Group Bank AG IMMOEAST AG Escrowb IMMOFINANZ AG Escrowb OMV AG Raiffeisen Bank International AGb 2016 365,928 1,340,115 1,571,072 1,157,632 721,521 18,659,482 35,523,941 17 13 19,174,582 566,954 7,481,160 iSHARES ANNUAL REPORT TO SHAREHOLDERS Schedule of Investments (Continued) iSHARES® MSCI EAFE ETF July 31, 2016 Security Shares Voestalpine AG 587,454 $ Value 20,706,142 101,545,337 BELGIUM — 1.33% Ageas Anheuser-Busch InBev SA/NV Colruyt SA Groupe Bruxelles Lambert SA KBC Group NVb Proximus SADP Solvay SA Telenet Group Holding NVa,b UCB SA Umicore SA 971,819 3,886,012 343,926 389,964 1,212,030 723,276 365,080 261,272 617,349 476,673 32,705,353 501,040,178 19,187,466 32,902,043 63,003,593 22,577,757 37,889,766 12,395,208 48,303,848 27,579,481 17,618 23,030,844 31,442 527,615 493,076 600,852 3,423,248 889,592 274,522 808,820 8,959,814 1,153,920 562,878 3,947,694 602,553 1,050,071 644,257 42,685,619 52,393,043 31,031,071 47,154,341 93,050,874 39,614,994 49,774,640 31,202,702 510,665,417 56,642,519 73,285,126 20,784,678 11,242,184 73,315,288 13,153,538 1,169,026,878 FINLAND — 0.97% Elisa OYJ Fortum OYJ Kone OYJ Class B Metso OYJ Neste OYJ Nokia OYJ Nokian Renkaat OYJ Orion OYJ Class B Sampo OYJ Class A Stora Enso OYJ Class R SCHEDULES OF UPM-Kymmene OYJ Wartsila OYJ Abp Shares 2,570,105 $ 725,728 Value 52,968,212 31,504,205 583,186,976 797,584,693 DENMARK — 1.95% AP Moeller – Maersk A/S Class A AP Moeller – Maersk A/S Class B Carlsberg A/S Class B Chr Hansen Holding A/S Coloplast A/S Class B Danske Bank A/S DSV A/S Genmab A/Sb ISS A/S Novo Nordisk A/S Class B Novozymes A/S Class B Pandora A/S TDC A/S Tryg A/S Vestas Wind Systems A/S William Demant Holding A/Sb Security 709,689 2,138,099 1,631,585 561,639 626,263 27,850,602 574,860 492,828 2,170,202 2,636,424 INVESTMENTS 25,744,711 35,505,315 82,632,546 15,581,997 23,719,802 160,079,904 21,361,490 20,186,982 89,962,570 23,939,242 FRANCE — 9.61% Accor SA Aeroports de Paris Air Liquide SA Airbus Group SE Alstom SAb ArcelorMittalb Arkema SA Atos SE AXA SA BNP Paribas SA Bollore SA Bouygues SA Bureau Veritas SA Capgemini SA Carrefour SA Casino Guichard Perrachon SAa Christian Dior SE Cie. de Saint-Gobain Cie. Generale des Etablissements Michelin Class B CNP Assurances Credit Agricole SA Danone SA Dassault Systemes Edenred Eiffage SA Electricite de France SAa Engie SA Essilor International SA Eurazeo SA Eutelsat Communications SA Fonciere des Regions Gecina SA Groupe Eurotunnel SE Registered Hermes International ICADE Iliad SA Imerys SA 875,091 138,735 1,666,147 2,851,362 766,219 8,962,737 331,072 436,802 9,405,728 5,119,549 4,108,698 992,438 1,249,401 794,574 2,674,155 36,623,018 14,756,963 177,727,762 167,812,704 18,862,998 57,619,843 28,273,811 42,822,768 191,742,415 253,929,640 14,877,165 29,365,157 27,146,495 76,369,393 66,999,357 285,710 263,250 2,307,383 15,479,550 47,615,876 97,790,802 888,567 841,399 5,086,744 2,851,786 630,324 1,003,725 291,512 1,184,793 7,046,957 1,012,474 209,168 814,968 148,171 174,893 90,858,488 12,857,328 45,050,973 219,659,090 52,068,019 22,768,209 22,404,842 15,507,900 116,036,877 129,693,461 13,372,190 16,203,597 13,941,350 26,461,188 2,275,423 126,351 178,570 127,271 166,983 23,648,517 54,369,189 13,766,352 24,742,482 11,846,077 81 Schedule of Investments (Continued) iSHARES® MSCI EAFE ETF July 31, 2016 Security Ingenico Group SA JCDecaux SA Kering Klepierre L’Oreal SA Lagardere SCA Legrand SA LVMH Moet Hennessy Louis Vuitton SE Natixis SA Orange SA Pernod Ricard SA Peugeot SAb Publicis Groupe SA Remy Cointreau SA Renault SA Rexel SA Safran SA Sanofi Schneider Electric SE SCOR SE SES SA SFR Group SA Societe BIC SA Societe Generale SA Sodexo SA STMicroelectronics NV Suez Technip SA Thales SA Total SA Unibail-Rodamco SE Valeo SA Veolia Environnement SA Vinci SA Vivendi SA Wendel SA Zodiac Aerospace Shares 274,138 $ 361,868 372,138 1,097,947 1,224,235 598,012 1,294,735 1,345,405 4,581,189 9,606,612 1,026,219 2,318,444 917,740 115,530 931,663 1,445,235 1,515,363 5,671,861 2,702,868 792,513 1,696,642 538,493 142,119 3,697,889 466,551 2,972,520 1,503,768 514,583 522,997 10,665,630 478,449 1,160,544 2,192,295 2,421,465 5,635,834 154,361 981,873 Value 30,051,583 12,388,638 70,702,783 52,579,670 233,072,493 15,277,074 71,450,810 230,790,275 18,877,949 147,066,178 117,281,647 35,026,042 68,349,131 10,105,358 81,523,404 21,486,512 103,028,972 482,986,059 176,875,737 23,161,571 37,177,021 12,723,854 21,009,838 126,350,006 54,650,264 21,695,892 24,408,269 28,728,478 47,658,747 509,991,947 131,696,611 59,568,053 48,687,486 183,832,847 110,825,493 16,479,484 22,124,297 5,750,762,319 GERMANY — 8.29% adidas AG Allianz SE Registered Axel Springer SE BASF SE Bayer AG Registered 82 911,116 2,214,077 215,673 4,447,410 3,997,127 149,517,109 317,657,040 11,820,058 349,425,361 430,083,131 Security Bayerische Motoren Werke AG Beiersdorf AG Brenntag AG Commerzbank AG Continental AG Covestro AGc Daimler AG Registered Deutsche Bank AG Registeredb Deutsche Boerse AG Deutsche Lufthansa AG Registered Deutsche Post AG Registered Deutsche Telekom AG Registered Deutsche Wohnen AG Bearer E.ON SE Evonik Industries AG Fraport AG Frankfurt Airport Services Worldwide Fresenius Medical Care AG & Co. KGaA Fresenius SE & Co. KGaA GEA Group AG Hannover Rueck SE HeidelbergCement AG Henkel AG & Co. KGaA HOCHTIEF AG HUGO BOSS AG Infineon Technologies AG K+S AG Registereda Lanxess AG Linde AG MAN SE Merck KGaA METRO AG Muenchener RueckversicherungsGesellschaft AG in Muenchen Registered Osram Licht AG ProSiebenSat.1 Media SE Registered QIAGEN NVa,b RTL Group SAb RWE AGb 2016 Shares 1,614,635 $ 498,219 758,409 5,145,034 536,575 317,156 4,684,096 Value 139,118,893 46,793,656 37,663,733 33,922,264 112,504,739 14,817,689 318,574,721 6,662,468 936,288 89,589,957 78,640,511 1,105,855 4,670,498 13,145,302 139,396,180 15,581,871 1,646,252 9,672,075 674,092 265,287,028 61,624,869 103,745,181 21,016,048 195,050 10,665,812 1,060,750 1,981,238 901,594 301,158 683,161 525,490 91,392 321,187 5,394,037 924,819 460,042 898,514 162,493 630,510 852,833 96,982,423 147,974,609 48,126,807 30,821,199 57,861,205 57,058,821 11,982,850 19,053,837 89,271,893 19,323,641 21,735,183 129,313,094 17,040,565 69,632,529 27,446,938 806,989 443,534 134,640,448 23,058,209 1,063,483 1,089,063 188,914 2,518,013 48,628,041 28,588,918 16,105,942 44,784,811 iSHARES ANNUAL REPORT TO SHAREHOLDERS Schedule of Investments (Continued) iSHARES® MSCI EAFE ETF July 31, 2016 Security Shares SAP SE Siemens AG Registered Symrise AG Telefonica Deutschland Holding AG ThyssenKrupp AG United Internet AG Registeredd Volkswagen AG Vonovia SE Zalando SEa,b,c 4,746,215 $ 3,702,827 610,399 3,516,582 1,848,384 626,001 164,292 2,256,881 423,856 Value 416,157,734 402,143,640 43,029,780 14,353,332 42,372,606 27,679,026 24,370,407 89,467,233 16,079,676 4,960,094,679 HONG KONG — 3.24% AIA Group Ltd. ASM Pacific Technology Ltd.a Bank of East Asia Ltd. (The)a BOC Hong Kong Holdings Ltd. Cathay Pacific Airways Ltd. Cheung Kong Infrastructure Holdings Ltd. Cheung Kong Property Holdings Ltd. CK Hutchison Holdings Ltd. CLP Holdings Ltd. First Pacific Co. Ltd./Hong Kong Galaxy Entertainment Group Ltd. Hang Lung Properties Ltd. Hang Seng Bank Ltd. Henderson Land Development Co. Ltd. HK Electric Investments & HK Electric Investments Ltd.c HKT Trust & HKT Ltd. Hong Kong & China Gas Co. Ltd. Hong Kong Exchanges and Clearing Ltd.a Hongkong Land Holdings Ltd. Hysan Development Co. Ltd. Kerry Properties Ltd. Li & Fung Ltd.a Link REIT Melco Crown Entertainment Ltd. ADRa MGM China Holdings Ltd.a SCHEDULES OF 58,397,200 1,150,300 5,583,840 17,393,500 5,665,000 361,598,394 8,545,776 23,062,271 57,044,772 9,198,384 3,388,792 29,957,813 13,105,684 13,157,184 8,470,000 10,670,250 93,564,378 153,953,609 88,193,352 8,277,747 11,328,000 10,955,000 3,632,800 37,662,923 23,717,163 64,838,407 5,590,996 33,286,814 12,792,000 13,158,440 12,248,089 20,789,113 37,269,036 69,159,482 5,420,000 4,746,400 3,228,797 3,026,500 28,750,400 11,011,258 133,754,728 30,376,960 14,854,226 8,268,326 14,375,293 82,159,271 849,460 4,552,800 11,858,462 6,594,562 Security MTR Corp. Ltd. New World Development Co. Ltd. NWS Holdings Ltd. PCCW Ltd. Power Assets Holdings Ltd. Sands China Ltd.a Shangri-La Asia Ltd. Sino Land Co. Ltd. SJM Holdings Ltd. Sun Hung Kai Properties Ltd. Swire Pacific Ltd. Class A Swire Properties Ltd. Techtronic Industries Co. Ltd. WH Group Ltd.c Wharf Holdings Ltd. (The) Wheelock & Co. Ltd. Wynn Macau Ltd.a Yue Yuen Industrial Holdings Ltd. Shares 7,346,000 $ Value 41,558,180 25,606,132 7,092,000 19,778,000 6,776,000 11,088,800 6,840,666 13,696,000 9,321,000 6,848,000 2,977,500 5,610,655 6,579,033 27,869,500 6,776,912 5,082,000 7,283,600 29,764,021 11,588,549 14,400,312 66,319,654 42,297,757 7,343,185 24,427,044 5,813,651 97,955,270 35,569,076 15,617,388 27,850,854 21,943,781 46,678,902 27,211,142 11,826,540 3,424,000 13,899,059 1,939,404,680 IRELAND — 0.45% Bank of Irelandb CRH PLC Irish Bank Resolution Corp. Ltd.b Kerry Group PLC Class A Paddy Power Betfair PLC Ryanair Holdings PLC Ryanair Holdings PLC ADR 132,553,241 3,894,367 27,422,130 119,650,271 3,570,811 790,630 398,610 173,066 112,806 40 67,679,570 46,803,313 2,309,794 7,983,281 271,848,399 INVESTMENTS ISRAEL — 0.77% Azrieli Group Ltd. Bank Hapoalim BM Bank Leumi le-Israel BMb Bezeq The Israeli Telecommunication Corp. Ltd. Check Point Software Technologies Ltd.a,b Israel Chemicals Ltd. Mizrahi Tefahot Bank Ltd. Mobileye NVa,b Nice Ltd. Taro Pharmaceutical Industries Ltd.a,b 201,416 5,143,993 6,851,628 8,952,057 26,290,860 24,717,921 9,872,959 19,694,629 632,072 2,475,198 673,606 848,892 300,033 48,593,695 9,975,086 8,225,225 40,670,416 20,585,252 75,934 10,627,723 83 Schedule of Investments (Continued) iSHARES® MSCI EAFE ETF July 31, 2016 Security Teva Pharmaceutical Industries Ltd. Shares 4,442,394 $ Value 239,288,316 457,621,180 ITALY — 1.88% Assicurazioni Generali SpA Atlantia SpA CNH Industrial NV Enel SpA Eni SpA EXOR SpA Ferrari NV Fiat Chrysler Automobiles NVa Intesa Sanpaolo SpA Leonardo-Finmeccanica SpAb Luxottica Group SpA Mediobanca SpA Poste Italiane SpAc Prysmian SpA Saipem SpAb Snam SpA Telecom Italia SpA/Milanob Tenaris SA Terna Rete Elettrica Nazionale SpA UniCredit SpA Unione di Banche Italiane SpA UnipolSai SpA 5,657,178 1,988,055 4,883,508 37,143,716 12,306,099 542,446 620,206 4,415,313 60,509,931 1,810,343 819,141 2,823,706 2,299,764 984,505 29,543,805 11,800,046 49,471,440 2,305,249 74,521,955 49,687,258 34,841,087 171,045,164 188,254,606 21,127,548 28,046,987 28,439,574 133,300,566 20,669,298 39,763,770 19,782,431 16,008,909 23,031,314 12,914,310 68,286,234 42,237,937 30,831,037 7,634,699 24,515,811 4,326,067 5,053,018 41,577,655 60,093,282 13,274,448 8,475,810 1,126,211,180 JAPAN — 23.44% ABC-Mart Inc. Acom Co. Ltd.b Aeon Co. Ltd. AEON Financial Service Co. Ltd. Aeon Mall Co. Ltd. Air Water Inc. Aisin Seiki Co. Ltd. Ajinomoto Co. Inc. Alfresa Holdings Corp. Alps Electric Co. Ltd. Amada Holdings Co. Ltd. ANA Holdings Inc. Aozora Bank Ltd. Asahi Glass Co. Ltd. Asahi Group Holdings Ltd. 84 171,200 1,977,870 3,234,000 11,025,223 9,456,567 46,765,751 508,290 525,210 491,000 929,700 2,787,600 882,700 856,000 1,646,800 5,136,000 5,136,000 4,748,000 1,863,400 11,823,812 7,123,402 8,441,645 43,044,607 71,767,406 19,534,211 19,544,714 18,109,417 14,748,742 18,993,453 27,658,252 63,564,877 Security Asahi Kasei Corp. ASICS Corp. Astellas Pharma Inc. Bandai Namco Holdings Inc. Bank of Kyoto Ltd. (The) Benesse Holdings Inc. Bridgestone Corp. Brother Industries Ltd. Calbee Inc. Canon Inc. Casio Computer Co. Ltd.a Central Japan Railway Co. Chiba Bank Ltd. (The) Chubu Electric Power Co. Inc. Chugai Pharmaceutical Co. Ltd. Chugoku Bank Ltd. (The) Chugoku Electric Power Co. Inc. (The) Concordia Financial Group Ltd.b Credit Saison Co. Ltd. CYBERDYNE Inc.a,b Dai Nippon Printing Co. Ltd. Dai-ichi Life Insurance Co. Ltd. (The) Daicel Corp. Daihatsu Motor Co. Ltd.b Daiichi Sankyo Co. Ltd. Daikin Industries Ltd. Daito Trust Construction Co. Ltd. Daiwa House Industry Co. Ltd. Daiwa Securities Group Inc. Denso Corp. Dentsu Inc. Don Quijote Holdings Co. Ltd. East Japan Railway Co. Eisai Co. Ltd. Electric Power Development Co. Ltd. FamilyMart Co. Ltd. FANUC Corp. Fast Retailing Co. Ltd. Fuji Electric Co. Ltd. 2016 Shares 6,053,000 $ 804,600 10,164,050 856,000 1,694,000 322,800 3,133,700 1,185,800 342,400 5,136,000 984,800 695,600 3,388,000 3,218,600 Value 46,239,876 14,940,272 170,731,444 22,860,633 11,553,944 7,823,927 110,108,345 13,687,870 15,067,805 147,086,500 14,192,805 130,452,574 16,430,073 47,406,710 1,104,700 847,000 41,661,370 9,661,346 1,422,300 17,944,420 5,667,000 677,600 342,400 3,007,000 24,562,437 11,385,346 6,658,567 33,859,375 5,263,452 1,278,000 1,016,400 2,947,995 1,137,700 69,641,810 14,515,217 15,198,049 70,791,001 100,043,444 342,400 2,806,500 8,125,000 2,371,600 1,027,200 547,500 1,627,000 1,227,100 57,431,390 79,387,652 46,402,522 93,628,273 49,613,504 21,662,804 150,579,060 72,367,589 684,800 278,500 949,100 256,300 2,785,000 15,842,912 16,467,873 160,444,528 83,603,542 12,418,842 iSHARES ANNUAL REPORT TO SHAREHOLDERS Schedule of Investments (Continued) iSHARES® MSCI EAFE ETF July 31, 2016 Security Shares Fuji Heavy Industries Ltd. FUJIFILM Holdings Corp. Fujitsu Ltd. Fukuoka Financial Group Inc. GungHo Online Entertainment Inc.a Hachijuni Bank Ltd. (The) Hakuhodo DY Holdings Inc. Hamamatsu Photonics KK Hankyu Hanshin Holdings Inc. Hikari Tsushin Inc. Hino Motors Ltd. Hirose Electric Co. Ltd. Hiroshima Bank Ltd. (The) Hisamitsu Pharmaceutical Co. Inc. Hitachi Chemical Co. Ltd. Hitachi Construction Machinery Co. Ltd. Hitachi High-Technologies Corp. Hitachi Ltd. Hitachi Metals Ltd. Hokuriku Electric Power Co. Honda Motor Co. Ltd. Hoshizaki Corp. Hoya Corp. Hulic Co. Ltd. Idemitsu Kosan Co. Ltd. IHI Corp. Iida Group Holdings Co. Ltd. INPEX Corp. Isetan Mitsukoshi Holdings Ltd. Isuzu Motors Ltd. ITOCHU Corp. Iyo Bank Ltd. (The) J Front Retailing Co. Ltd. Japan Airlines Co. Ltd. Japan Airport Terminal Co. Ltd.a Japan Exchange Group Inc. Japan Post Bank Co. Ltd. Japan Post Holdings Co. Ltd. Japan Prime Realty Investment Corp. Japan Real Estate Investment Corp. SCHEDULES OF 2,879,800 $ 2,202,200 9,117,000 3,986,000 Value 112,820,383 80,128,836 38,519,403 15,401,825 2,147,200 1,694,000 1,185,820 684,800 1,175,600 123,100 1,295,900 169,470 1,822,000 4,881,667 8,016,685 14,000,509 20,379,958 43,933,727 10,269,844 13,770,162 21,215,789 6,684,608 338,800 508,200 19,240,045 10,730,788 508,200 338,800 23,716,000 959,000 847,000 7,895,400 173,600 2,032,800 1,524,600 508,200 6,848,000 758,480 4,627,643 1,646,800 2,879,800 7,191,800 1,185,800 1,185,800 604,300 8,355,535 11,669,649 110,266,615 10,789,159 10,082,841 218,907,929 15,838,025 72,893,985 15,977,171 9,947,302 19,444,485 15,201,424 36,873,038 16,373,998 37,906,525 82,279,216 7,740,647 13,849,857 18,845,127 182,700 2,623,500 1,953,600 2,202,200 8,164,766 37,630,336 24,056,625 29,288,175 3,425 15,055,496 6,776 40,926,419 INVESTMENTS Security Japan Retail Fund Investment Corp. Japan Tobacco Inc. JFE Holdings Inc. JGC Corp. Joyo Bank Ltd. (The) JSR Corp. JTEKT Corp. JX Holdings Inc. Kajima Corp. Kakaku.com Inc. Kamigumi Co. Ltd. Kaneka Corp. Kansai Electric Power Co. Inc. (The)b Kansai Paint Co. Ltd. Kao Corp. Kawasaki Heavy Industries Ltd. KDDI Corp. Keihan Holdings Co. Ltd. Keikyu Corp. Keio Corp. Keisei Electric Railway Co. Ltd. Keyence Corp. Kikkoman Corp. Kintetsu Group Holdings Co. Ltd. Kirin Holdings Co. Ltd. Kobe Steel Ltd. Koito Manufacturing Co. Ltd. Komatsu Ltd. Konami Holdings Corp. Konica Minolta Inc. Kose Corp. Kubota Corp. Kuraray Co. Ltd. Kurita Water Industries Ltd. Kyocera Corp. Kyowa Hakko Kirin Co. Ltd. Kyushu Electric Power Co. Inc. Kyushu Financial Group Inc. Lawson Inc. LIXIL Group Corp. M3 Inc. Shares 11,984 $ 5,333,600 2,393,975 1,148,000 3,190,000 1,017,700 1,016,400 10,243,200 4,274,000 684,800 1,151,000 1,176,000 Value 29,467,415 209,472,020 31,686,853 16,970,484 12,606,235 14,051,281 14,430,034 38,769,940 31,778,192 14,312,744 10,444,748 8,984,808 3,290,700 1,104,800 2,453,100 30,709,133 23,360,507 132,917,640 6,848,000 8,978,200 2,007,000 2,598,000 2,785,000 1,437,000 220,123 658,000 20,513,597 275,517,773 14,472,098 26,465,453 26,060,545 18,957,155 156,621,644 23,466,751 8,560,000 3,963,800 15,246,000 513,600 4,537,100 488,300 2,032,800 171,200 5,048,200 1,816,400 508,200 1,540,800 1,524,600 2,075,900 1,599,000 338,800 1,311,580 977,200 37,168,366 68,342,046 13,388,691 25,658,701 89,405,020 19,010,753 16,582,142 16,003,279 74,748,924 23,182,429 11,340,717 73,533,227 26,822,011 19,566,955 8,924,506 26,149,271 24,635,717 31,561,028 85 Schedule of Investments (Continued) iSHARES® MSCI EAFE ETF July 31, 2016 Security Shares Mabuchi Motor Co. Ltd. 263,800 $ Makita Corp. 593,400 Marubeni Corp. 7,792,400 Marui Group Co. Ltd. 1,122,700 Maruichi Steel Tube Ltd. 171,200 Mazda Motor Corp. 2,620,400 McDonald’s Holdings Co. Japan Ltd.a 338,800 Medipal Holdings Corp. 677,600 MEIJI Holdings Co. Ltd. 579,104 Minebea Co. Ltd. 1,694,000 Miraca Holdings Inc. 278,500 Mitsubishi Chemical Holdings Corp. 6,611,800 Mitsubishi Corp. 7,074,300 Mitsubishi Electric Corp. 9,424,000 Mitsubishi Estate Co. Ltd. 5,997,000 Mitsubishi Gas Chemical Co. Inc. 1,712,000 Mitsubishi Heavy Industries Ltd. 15,408,000 Mitsubishi Logistics Corp. 477,000 Mitsubishi Materials Corp. 5,777,000 Mitsubishi Motors Corp. 3,294,500 Mitsubishi Tanabe Pharma Corp. 1,095,500 Mitsubishi UFJ Financial Group Inc. 61,492,280 Mitsubishi UFJ Lease & Finance Co. Ltd. 2,139,400 Mitsui & Co. Ltd. 8,241,600 Mitsui Chemicals Inc. 3,891,000 Mitsui Fudosan Co. Ltd. 4,338,000 Mitsui OSK Lines Ltd. 5,136,000 Mixi Inc. 195,000 Mizuho Financial Group Inc. 113,152,060 MS&AD Insurance Group Holdings Inc. 2,401,288 Murata Manufacturing Co. Ltd. 930,600 Nabtesco Corp. 530,900 Nagoya Railroad Co. Ltd. 5,082,000 NEC Corp. 12,176,000 Nexon Co. Ltd. 814,100 NGK Insulators Ltd. 1,424,000 NGK Spark Plug Co. Ltd. 847,000 86 Value 12,149,446 41,978,338 36,587,821 16,322,613 6,364,561 39,567,439 10,363,839 11,186,995 60,800,693 13,669,688 13,614,529 36,283,128 122,765,698 111,955,115 112,877,133 9,855,881 66,617,405 6,702,249 15,332,429 15,494,453 20,566,346 313,206,520 8,746,730 97,184,696 16,705,274 95,386,476 11,075,338 7,021,027 184,492,455 70,432,470 116,455,530 14,344,168 28,661,716 33,741,367 12,233,146 34,583,949 14,099,449 Security NH Foods Ltd. NHK Spring Co. Ltd. Nidec Corp. Nikon Corp.a Nintendo Co. Ltd. Nippon Building Fund Inc. Nippon Electric Glass Co. Ltd. Nippon Express Co. Ltd. Nippon Paint Holdings Co. Ltd. Nippon Prologis REIT Inc. Nippon Steel & Sumitomo Metal Corp. Nippon Telegraph & Telephone Corp. Nippon Yusen KK Nissan Motor Co. Ltd. Nisshin Seifun Group Inc. Nissin Foods Holdings Co. Ltd. Nitori Holdings Co. Ltd. Nitto Denko Corp. NOK Corp. Nomura Holdings Inc. Nomura Real Estate Holdings Inc. Nomura Real Estate Master Fund Inc. Nomura Research Institute Ltd. NSK Ltd. NTT Data Corp. NTT DOCOMO Inc. NTT Urban Development Corp. Obayashi Corp. Obic Co. Ltd. Odakyu Electric Railway Co. Ltd. Oji Holdings Corp. Olympus Corp. Omron Corp. Ono Pharmaceutical Co. Ltd. Oracle Corp. Japan Oriental Land Co. Ltd./Japan ORIX Corp. Osaka Gas Co. Ltd. Otsuka Corp. Otsuka Holdings Co. Ltd. 2016 Shares 772,000 $ 847,000 1,157,500 1,694,000 513,600 6,776 1,794,500 4,277,000 727,000 6,848 Value 18,854,623 7,504,279 106,562,058 24,149,232 107,771,557 41,653,705 8,229,643 21,826,326 20,181,636 17,018,935 3,807,135 72,439,023 3,388,000 7,687,000 12,031,000 1,076,597 338,800 347,300 803,300 477,800 17,796,000 161,358,521 13,801,122 118,801,503 17,826,854 19,306,162 43,173,167 54,169,940 9,235,711 81,474,198 605,300 10,536,715 17,100 552,170 2,202,200 605,391 6,945,417 508,200 3,023,000 338,800 28,315,071 19,611,639 18,887,972 30,185,374 186,333,844 5,469,528 33,302,113 19,934,273 3,388,000 4,274,000 1,369,600 964,000 1,987,000 171,200 1,027,200 6,437,200 9,321,000 223,800 1,883,200 40,331,366 17,932,576 47,842,787 32,357,516 71,794,516 10,457,257 65,249,276 91,955,514 37,853,346 11,551,954 89,929,071 iSHARES ANNUAL REPORT TO SHAREHOLDERS Schedule of Investments (Continued) iSHARES® MSCI EAFE ETF July 31, 2016 Security Shares Panasonic Corp. Park24 Co. Ltd. Pola Orbis Holdings Inc. Rakuten Inc. Recruit Holdings Co. Ltd. Resona Holdings Inc. Ricoh Co. Ltd. Rinnai Corp. Rohm Co. Ltd. Ryohin Keikaku Co. Ltd. Sankyo Co. Ltd. Santen Pharmaceutical Co. Ltd. SBI Holdings Inc./Japan Secom Co. Ltd. Sega Sammy Holdings Inc. Seibu Holdings Inc. Seiko Epson Corp. Sekisui Chemical Co. Ltd. Sekisui House Ltd. Seven & I Holdings Co. Ltd. Seven Bank Ltd. Shikoku Electric Power Co. Inc. Shimadzu Corp. Shimamura Co. Ltd. Shimano Inc. Shimizu Corp. Shin-Etsu Chemical Co. Ltd. Shinsei Bank Ltd. Shionogi & Co. Ltd. Shiseido Co. Ltd. Shizuoka Bank Ltd. (The) Showa Shell Sekiyu KK SMC Corp./Japan SoftBank Group Corp. Sohgo Security Services Co. Ltd. Sompo Japan Nipponkoa Holdings Inc. Sony Corp. Sony Financial Holdings Inc. Stanley Electric Co. Ltd. Start Today Co. Ltd. Sumitomo Chemical Co. Ltd. SCHEDULES OF 10,733,068 $ 488,300 110,000 4,590,700 1,198,400 10,873,500 3,297,900 169,400 508,200 110,900 273,900 Value 105,880,195 16,628,453 10,905,011 52,655,197 45,896,668 44,030,858 29,476,279 16,744,128 21,967,371 24,812,773 10,035,561 1,812,300 1,106,880 1,016,400 1,016,438 807,700 1,524,600 1,967,900 2,879,800 3,632,880 2,974,700 30,362,678 12,193,663 76,950,262 11,237,003 14,312,174 27,283,177 28,975,568 48,570,369 152,532,396 10,275,102 1,016,400 1,065,000 119,200 377,400 2,785,000 1,883,200 8,470,000 1,455,300 1,767,400 2,948,000 847,000 257,100 4,667,400 10,681,200 15,681,173 17,492,979 59,840,464 28,533,444 129,803,628 12,892,814 75,970,679 50,029,052 22,149,193 7,595,190 68,197,917 259,727,591 342,400 17,038,981 1,622,750 6,125,800 847,000 740,600 171,200 7,021,000 53,265,658 196,173,836 10,818,393 18,203,361 8,185,393 31,513,490 INVESTMENTS Security Sumitomo Corp. Sumitomo Dainippon Pharma Co. Ltd. Sumitomo Electric Industries Ltd. Sumitomo Heavy Industries Ltd. Sumitomo Metal Mining Co. Ltd. Sumitomo Mitsui Financial Group Inc. Sumitomo Mitsui Trust Holdings Inc. Sumitomo Realty & Development Co. Ltd. Sumitomo Rubber Industries Ltd. Sundrug Co. Ltd. Suntory Beverage & Food Ltd. Suruga Bank Ltd. Suzuken Co. Ltd./Aichi Japan Suzuki Motor Corp. Sysmex Corp. T&D Holdings Inc. Taiheiyo Cement Corp. Taisei Corp. Taisho Pharmaceutical Holdings Co. Ltd. Taiyo Nippon Sanso Corp. Takashimaya Co. Ltd. Takeda Pharmaceutical Co. Ltd. TDK Corp. Teijin Ltd. Terumo Corp. THK Co. Ltd. Tobu Railway Co. Ltd. Toho Co. Ltd./Tokyo Toho Gas Co. Ltd. Tohoku Electric Power Co. Inc. Tokio Marine Holdings Inc. Tokyo Electric Power Co. Holdings Inc.b Tokyo Electron Ltd. Tokyo Gas Co. Ltd. Tokyo Tatemono Co. Ltd. Tokyu Corp. Shares Value 5,435,800 $ 57,495,313 847,000 3,463,400 2,759,000 15,917,666 48,477,800 13,298,980 2,234,000 27,106,201 6,505,600 209,987,069 16,175,600 54,768,339 1,744,000 45,699,488 847,000 171,200 677,600 847,000 360,924 1,729,600 690,000 2,795,200 6,776,000 5,082,000 12,099,410 14,917,461 29,587,354 19,554,101 11,621,693 53,802,652 48,340,733 29,087,972 19,636,747 45,868,664 171,200 700,400 1,694,000 18,826,404 6,813,668 12,942,401 3,424,000 601,000 5,082,000 1,694,000 530,200 5,082,000 513,600 1,712,000 2,202,200 3,316,400 153,284,012 37,472,703 19,289,633 73,307,216 10,615,899 27,521,198 15,059,453 15,151,329 28,407,166 130,733,824 6,945,400 847,000 10,164,000 1,048,900 5,478,000 27,379,047 74,621,291 43,538,040 13,192,488 45,273,611 87 Schedule of Investments (Continued) iSHARES® MSCI EAFE ETF July 31, 2016 Security Tokyu Fudosan Holdings Corp. TonenGeneral Sekiyu KK Toppan Printing Co. Ltd. Toray Industries Inc. Toshiba Corp.a,b TOTO Ltd. Toyo Seikan Group Holdings Ltd. Toyo Suisan Kaisha Ltd. Toyoda Gosei Co. Ltd. Toyota Industries Corp. Toyota Motor Corp. Toyota Tsusho Corp. Trend Micro Inc./Japan Tsuruha Holdings Inc. Unicharm Corp. United Urban Investment Corp. USS Co. Ltd. West Japan Railway Co. Yahoo Japan Corp. Yakult Honsha Co. Ltd. Yamada Denki Co. Ltd. Yamaguchi Financial Group Inc. Yamaha Corp. Yamaha Motor Co. Ltd. Yamato Holdings Co. Ltd. Yamazaki Baking Co. Ltd. Yaskawa Electric Corp. Yokogawa Electric Corp. Yokohama Rubber Co. Ltd. (The) Shares 2,304,900 $ 1,694,000 2,750,000 7,045,000 19,636,000 727,900 Value 13,853,914 15,355,672 24,471,874 64,665,380 51,578,389 31,499,600 768,700 360,200 278,500 806,700 12,703,200 1,087,500 513,600 171,200 1,883,200 13,696 1,095,580 808,000 7,114,822 399,500 3,049,350 15,106,228 16,097,146 6,133,332 36,798,775 730,571,896 24,257,452 18,742,879 19,544,714 39,029,290 25,565,154 18,739,833 50,497,536 31,587,491 19,256,769 16,126,728 1,370,000 847,000 1,297,200 1,646,800 513,600 1,185,800 1,185,800 13,635,166 23,669,883 22,251,818 40,629,690 14,167,412 16,430,073 15,516,005 652,500 8,888,032 14,027,857,629 NETHERLANDS — 3.17% ABN AMRO Group NVc Aegon NV AerCap Holdings NVb Akzo Nobel NV Altice NV Class Aa,b Altice NV Class Bb ASML Holding NV Boskalis Westminster Gemalto NVa Heineken Holding NV Heineken NV 88 1,098,846 8,827,294 818,860 1,200,884 1,902,981 424,397 1,764,378 422,465 400,565 487,924 1,108,696 20,422,409 35,990,126 29,896,579 77,833,856 28,249,326 6,276,349 195,210,264 15,523,777 26,414,551 40,899,770 104,688,702 Security ING Groep NV Koninklijke Ahold Delhaize NV Koninklijke DSM NV Koninklijke KPN NV Koninklijke Philips NV Koninklijke Vopak NV NN Group NV NXP Semiconductors NVb OCI NVb Randstad Holding NV RELX NV Unilever NV CVA Wolters Kluwer NV Shares 18,754,043 $ 6,211,938 883,749 16,439,969 4,513,749 354,472 1,537,513 1,416,416 440,385 578,650 4,913,536 7,875,965 1,466,800 Value 209,717,183 148,377,302 56,587,354 54,104,123 120,483,877 18,229,907 41,478,709 119,106,421 6,727,014 24,899,471 88,874,576 364,930,556 61,714,401 1,896,636,603 NEW ZEALAND — 0.20% Auckland International Airport Ltd. Contact Energy Ltd. Fletcher Building Ltd. Mercury NZ Ltd. Meridian Energy Ltd. Ryman Healthcare Ltd. Spark New Zealand Ltd. 4,544,170 3,552,326 3,337,764 3,378,405 6,059,242 1,837,231 8,879,308 24,186,144 13,834,462 23,325,722 7,626,262 12,235,790 12,627,354 25,262,820 119,098,554 NORWAY — 0.61% DNB ASA Gjensidige Forsikring ASA Marine Harvest ASA Norsk Hydro ASA Orkla ASA Schibsted ASA Schibsted ASA Class B Statoil ASA Telenor ASA Yara International ASA 4,723,049 985,820 1,933,736 6,579,569 3,896,781 417,959 376,451 5,388,058 3,628,001 866,743 52,064,621 16,654,856 32,967,801 28,144,923 36,224,810 13,164,649 11,106,397 84,951,039 60,689,945 28,226,336 364,195,377 PORTUGAL — 0.15% EDP – Energias de Portugal SA Galp Energia SGPS SA Jeronimo Martins SGPS SA 11,222,750 2,207,328 1,328,058 38,502,927 30,138,501 22,239,396 90,880,824 SINGAPORE — 1.40% Ascendas REIT CapitaLand Commercial Trust 2016 10,469,356 9,909,300 iSHARES ANNUAL REPORT TO 19,097,552 11,103,787 SHAREHOLDERS Schedule of Investments (Continued) iSHARES® MSCI EAFE ETF July 31, 2016 Security Shares CapitaLand Ltd. CapitaLand Mall Trust City Developments Ltd. ComfortDelGro Corp. Ltd.a DBS Group Holdings Ltd.a Genting Singapore PLC Global Logistic Properties Ltd.a Golden Agri-Resources Ltd. Hutchison Port Holdings Trust Jardine Cycle & Carriage Ltd.a Jardine Matheson Holdings Ltd. Keppel Corp. Ltd.a Noble Group Ltd.a,b Oversea-Chinese Banking Corp. Ltd. SembCorp Industries Ltd.a Sembcorp Marine Ltda Singapore Airlines Ltd. Singapore Exchange Ltd. Singapore Press Holdings Ltd.a Singapore Technologies Engineering Ltd. Singapore Telecommunications Ltd. StarHub Ltd. Suntec REITa United Overseas Bank Ltd. UOL Group Ltd. Wilmar International Ltd. Yangzijiang Shipbuilding Holdings Ltd. Value 12,708,600 $ 11,818,100 2,032,800 10,078,700 8,439,000 29,432,800 13,168,200 33,385,794 24,595,100 545,654 29,994,983 18,830,120 12,880,000 21,161,443 96,824,503 17,202,552 18,775,298 8,948,616 11,682,673 15,937,761 1,199,400 6,945,400 42,940,254 71,124,420 27,148,649 5,179,303 14,909,098 4,625,800 3,802,200 2,710,400 3,963,800 95,464,405 9,540,217 3,991,588 22,157,838 22,222,779 6,794,750 19,123,040 7,623,000 18,672,973 38,796,285 2,809,200 11,556,900 6,084,200 2,371,600 9,085,700 120,741,919 8,198,990 14,369,759 82,445,417 10,188,469 20,902,995 8,924,100 5,780,632 839,692,681 SPAIN — 2.96% Abertis Infraestructuras SA ACS Actividades de Construccion y Servicios SA Aena SAc Amadeus IT Holding SA Class A Banco Bilbao Vizcaya Argentaria SA Banco de Sabadell SA Banco Popular Espanol SAa SCHEDULES OF 3,010,837 47,371,861 983,736 329,944 28,216,624 47,595,846 2,150,303 100,980,230 31,701,144 26,016,371 16,451,622 185,225,313 35,580,519 23,033,088 INVESTMENTS Security Banco Santander SA Bankia SA Bankinter SA CaixaBank SA Distribuidora Internacional de Alimentacion SA Enagas SA Endesa SA Ferrovial SA Gas Natural SDG SA Grifols SA Iberdrola SA Iberdrola SA Newb Industria de Diseno Textil SA International Consolidated Airlines Group SA Mapfre SA Red Electrica Corp. SA Repsol SA Telefonica SA Zardoya Otis SA Shares Value 70,554,738 $ 22,817,074 3,394,587 13,179,369 299,338,528 17,503,431 23,687,032 33,115,918 3,081,755 699,828 1,669,507 2,381,415 1,821,852 1,469,566 26,369,970 585,999 5,303,583 19,233,098 21,341,039 35,088,894 49,305,789 37,699,995 32,225,955 181,205,190 4,026,782 183,496,924 4,022,366 5,378,918 1,693,004 5,410,458 21,804,673 916,064 21,711,908 13,184,831 38,791,721 68,216,540 213,790,906 8,994,136 1,769,962,098 SWEDEN — 2.72% Alfa Laval AB Assa Abloy AB Atlas Copco AB Class A Atlas Copco AB Class B Boliden AB Electrolux AB Class B Getinge AB Class B Hennes & Mauritz AB Class B Hexagon AB Class B Husqvarna AB Class B ICA Gruppen ABa Industrivarden AB Class C Investor AB Class B Kinnevik AB Class B Lundin Petroleum ABa,b Millicom International Cellular SA SDR Nordea Bank AB Sandvik AB Securitas AB Class B Skandinaviska Enskilda Banken AB Class A 1,423,021 4,850,546 3,240,927 1,905,378 1,345,650 1,159,673 971,331 4,601,342 1,252,576 2,018,294 399,222 761,405 2,203,555 1,135,788 903,714 22,495,785 106,749,073 91,264,298 48,877,030 29,677,658 31,501,184 19,748,978 139,387,220 49,539,972 17,372,172 13,394,105 12,848,609 76,125,344 29,042,227 14,995,887 319,918 14,778,500 5,147,641 1,517,002 17,132,975 132,052,948 55,316,601 25,030,337 7,373,860 64,852,016 89 Schedule of Investments (Continued) iSHARES® MSCI EAFE ETF July 31, 2016 Security Skanska AB Class B SKF AB Class B Svenska Cellulosa AB SCA Class B Svenska Handelsbanken AB Class A Swedbank AB Class A Swedish Match AB Tele2 AB Class B Telefonaktiebolaget LM Ericsson Class B Telia Co. AB Volvo AB Class B Shares Value 1,662,140 $ 1,927,456 35,430,575 30,628,241 2,924,465 87,219,202 7,248,073 4,388,518 952,917 1,548,701 87,485,823 92,466,723 34,851,923 13,121,509 14,687,517 12,567,394 7,478,193 109,811,281 57,510,106 79,922,563 1,625,852,365 SWITZERLAND — 8.99% ABB Ltd. Registered Actelion Ltd. Registered Adecco Group AG Registered Aryzta AG Baloise Holding AG Registered Barry Callebaut AG Registered Chocoladefabriken Lindt & Sprungli AG Participation Certificates Chocoladefabriken Lindt & Sprungli AG Registered Cie. Financiere Richemont SA Class A Registered Credit Suisse Group AG Registered Dufry AG Registereda,b EMS-Chemie Holding AG Registered Galenica AG Registered Geberit AG Registered Givaudan SA Registered Julius Baer Group Ltd. Kuehne + Nagel International AG Registered LafargeHolcim Ltd. Registered Lonza Group AG Registered Nestle SA Registered Novartis AG Registered Pargesa Holding SA Bearer Partners Group Holding AG 90 9,510,533 508,098 796,651 431,937 245,948 11,409 202,718,175 90,374,097 43,853,105 16,290,655 27,789,872 14,968,816 4,925 29,047,028 480 34,009,002 2,520,923 153,767,304 9,005,769 225,621 103,900,175 26,053,395 39,882 20,328 185,589 43,982 1,082,769 21,891,873 26,292,100 71,819,842 90,653,571 44,567,800 255,918 2,201,235 259,617 15,432,487 10,989,385 147,162 83,006 36,013,087 105,045,225 49,078,613 1,240,730,757 913,081,500 10,278,271 38,091,118 Security Roche Holding AG Schindler Holding AG Participation Certificates Schindler Holding AG Registered SGS SA Registered Sika AG Bearer Sonova Holding AG Registered Swatch Group AG (The) Bearera Swatch Group AG (The) Registered Swiss Life Holding AG Registered Swiss Prime Site AG Registered Swiss Re AG Swisscom AG Registered Syngenta AG Registered UBS Group AG Zurich Insurance Group AG Shares Value 3,392,717 $ 868,847,284 241,337 46,422,007 74,100 27,104 10,374 266,390 14,353,065 60,156,325 48,797,355 36,604,679 152,548 40,108,073 251,555 12,884,239 160,043 329,177 1,611,226 128,616 454,046 17,680,400 727,397 36,680,143 30,330,811 135,623,400 63,492,880 179,043,852 244,227,161 175,291,801 5,383,178,456 UNITED KINGDOM — 19.07% 3i Group PLC Aberdeen Asset Management PLC Admiral Group PLC Aggreko PLC Anglo American PLC Antofagasta PLCa ARM Holdings PLC Ashtead Group PLC Associated British Foods PLC AstraZeneca PLC Auto Trader Group PLCc Aviva PLC Babcock International Group PLC BAE Systems PLC Barclays PLC Barratt Developments PLC Berkeley Group Holdings PLC BHP Billiton PLC BP PLC British American Tobacco PLC British Land Co. PLC (The) 2016 4,689,198 38,413,493 4,495,650 1,030,960 1,234,230 6,793,875 1,932,405 6,734,243 2,438,905 1,714,644 6,115,736 4,715,260 19,633,879 19,010,870 29,620,961 21,073,522 74,913,012 12,841,102 149,494,469 38,728,095 61,261,515 409,890,774 23,207,497 101,951,588 1,201,522 15,325,491 81,403,222 4,838,100 628,031 10,259,248 89,474,581 9,021,980 4,741,168 15,474,033 108,656,503 167,036,227 28,103,018 22,371,846 128,679,543 507,078,301 577,902,054 42,238,446 iSHARES ANNUAL REPORT TO SHAREHOLDERS Schedule of Investments (Continued) iSHARES® MSCI EAFE ETF July 31, 2016 Security Shares BT Group PLC Bunzl PLC Burberry Group PLC Capita PLC Carnival PLC Centrica PLC Cobham PLC Coca-Cola European Partners PLCb Coca-Cola HBC AG Compass Group PLC Croda International PLC DCC PLC Diageo PLC Direct Line Insurance Group PLC Dixons Carphone PLC easyJet PLC Experian PLC Fresnillo PLC G4S PLC GKN PLC GlaxoSmithKline PLC Glencore PLC Hammerson PLC Hargreaves Lansdown PLC Hikma Pharmaceuticals PLC HSBC Holdings PLC ICAP PLC IMI PLC Imperial Brands PLC Inmarsat PLC InterContinental Hotels Group PLC Intertek Group PLC Intu Properties PLCa Investec PLC ITV PLC J Sainsbury PLC Johnson Matthey PLC Kingfisher PLC Land Securities Group PLC Legal & General Group PLC Lloyds Banking Group PLC London Stock Exchange Group PLC SCHEDULES OF Value 40,980,690 $ 1,610,570 2,146,991 3,210,385 917,250 26,244,832 8,220,285 224,904,050 50,572,080 37,627,401 40,919,321 44,353,483 84,011,952 18,673,983 1,050,425 885,830 7,956,524 651,888 437,733 12,182,488 39,638,170 18,359,183 151,697,312 28,778,271 39,200,473 349,535,127 6,617,543 4,751,968 772,422 4,657,198 1,081,116 7,494,191 8,360,626 23,545,901 59,262,405 3,763,930 1,266,846 691,152 95,465,459 2,695,812 1,340,746 4,636,672 2,163,975 30,768,972 22,050,617 10,675,923 91,328,277 27,717,537 18,536,924 32,124,575 527,700,886 146,939,971 27,860,344 21,849,074 24,170,710 627,536,887 15,927,576 19,082,768 245,228,682 22,467,723 917,073 797,745 4,488,167 2,890,315 17,600,178 6,435,421 941,055 11,035,259 3,832,026 28,939,929 311,177,132 36,795,816 38,394,779 17,882,782 17,249,438 45,800,814 19,164,889 40,931,623 49,273,052 55,660,338 79,037,250 219,589,217 1,522,844 56,107,184 INVESTMENTS Security Marks & Spencer Group PLC Mediclinic International PLC Meggitt PLC Merlin Entertainments PLCc Mondi PLC National Grid PLC Next PLC Old Mutual PLC Pearson PLC Persimmon PLC Petrofac Ltd. Provident Financial PLC Prudential PLC Randgold Resources Ltd. Reckitt Benckiser Group PLC RELX PLC Rio Tinto PLC Rolls-Royce Holdings PLC Royal Bank of Scotland Group PLCb Royal Dutch Shell PLC Class A Royal Dutch Shell PLC Class B Royal Mail PLC RSA Insurance Group PLC SABMiller PLC Sage Group PLC (The) Schroders PLC Segro PLC Severn Trent PLC Shire PLC Sky PLC Smith & Nephew PLC Smiths Group PLC SSE PLC St. James’s Place PLC Standard Chartered PLC Standard Life PLC Tate & Lyle PLC Taylor Wimpey PLC Tesco PLCb Travis Perkins PLC TUI AG Unilever PLC Shares 7,829,479 $ 1,797,881 3,771,896 3,388,761 1,772,304 18,113,084 691,125 23,843,237 3,961,273 1,487,639 1,260,693 707,141 12,470,934 449,284 3,074,848 5,391,130 6,011,483 8,892,090 Value 33,191,880 25,636,887 21,939,819 21,290,494 36,002,256 260,447,939 46,109,747 66,668,955 46,387,763 33,320,592 12,478,347 25,434,025 221,044,806 52,940,664 298,918,947 102,714,504 196,463,344 93,385,705 16,806,939 42,933,249 20,380,199 526,023,018 18,142,912 4,279,264 4,908,319 4,712,965 5,279,839 637,062 3,573,520 1,151,879 4,329,822 4,990,343 4,329,929 1,958,594 4,875,091 2,557,803 15,851,449 9,540,414 2,261,636 15,755,457 39,286,494 1,199,428 2,410,619 6,205,645 482,248,777 28,947,652 32,433,998 276,201,868 49,946,564 22,143,762 21,018,417 37,453,785 280,019,477 60,989,385 71,458,183 32,843,379 98,125,526 31,446,922 127,243,960 38,367,770 21,710,062 32,360,959 81,370,679 24,842,703 31,509,707 291,133,439 91 Schedule of Investments (Continued) iSHARES® MSCI EAFE ETF July 31, 2016 Security United Utilities Group PLC Vodafone Group PLC Weir Group PLC (The) Whitbread PLC William Hill PLC Wm Morrison Supermarkets PLC Wolseley PLC Worldpay Group PLCb,c WPP PLC Shares 3,376,124 $ 128,583,290 1,027,288 885,157 4,248,979 10,721,111 1,236,286 6,793,180 6,269,314 Value 45,586,832 391,887,940 19,981,584 45,351,865 18,046,745 26,447,557 69,087,256 26,462,648 141,337,621 11,415,412,266 TOTAL COMMON STOCKS (Cost: $59,603,091,621) 267,967 354,001 859,893 740,221 635,488 892,876 19,417,595 14,941,804 107,119,543 38,796,760 9,273,784 125,606,149 315,155,635 ITALY — 0.05% Intesa Sanpaolo SpA Telecom Italia SpA/Milano 5,594,919 28,808,582 11,662,155 20,053,970 31,716,125 TOTAL PREFERRED STOCKS (Cost: $366,502,903) Value SHORT-TERM INVESTMENTS — 0.55% MONEY MARKET FUNDS — 0.55% BlackRock Cash Funds: Institutional, SL Agency Shares 0.57%e,f,g 298,663,532 $ BlackRock Cash Funds: Prime, SL Agency Shares 0.47%e,f,g 16,502,482 BlackRock Cash Funds: Treasury, SL Agency Shares 0.28%e,f 16,103,493 298,663,532 16,502,482 16,103,493 TOTAL SHORT-TERM INVESTMENTS (Cost: $331,269,507) 331,269,507 TOTAL INVESTMENTS IN SECURITIES — 99.95% (Cost: $60,301,354,454)h 59,824,761,610 Other Assets, Less Liabilities — 0.05% NET ASSETS — 100.00% 28,989,553 $59,853,751,163 ADR — American Depositary Receipts SDR — Swedish Depositary Receipts a All or a portion of this security represents a security on loan. See Note 1. b Non-income earning security. c This security may be resold to qualified institutional buyers under Rule 144A of the Securities Act of 1933. d This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933. e Affiliated money market fund. f The rate quoted is the annualized seven-day yield of the fund at period end. g All or a portion of this security represents an investment of securities lending collateral. See Note 1. 346,871,760 h The cost of investments for federal income tax purposes was $62,513,423,525. Net unrealized depreciation was $2,688,661,915, of which $9,447,270,273 represented gross unrealized appreciation on securities and $12,135,932,188 represented gross unrealized depreciation on securities. RIGHTS — 0.00% SPAIN — 0.00% Zardoya Otis SAb Shares 331,269,507 59,146,251,563 PREFERRED STOCKS — 0.58% GERMANY — 0.53% Bayerische Motoren Werke AG Fuchs Petrolub SE Henkel AG & Co. KGaA Porsche Automobil Holding SE Schaeffler AG Volkswagen AG Security 916,064 368,780 368,780 TOTAL RIGHTS (Cost: $490,423) 92 368,780 2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS Schedule of Investments (Continued) iSHARES® MSCI EAFE ETF July 31, 2016 Schedule 1 — Futures Contracts (Note 5) Futures contracts outstanding as of July 31, 2016 were as follows: Issue Number of long (short) contracts Expiration date 459 3,860 1,186 731 Sep. 2016 Sep. 2016 Sep. 2016 Sep. 2016 ASX SPI 200 Index Euro STOXX 50 FTSE 100 Index TOPIX Index Exchange Initial notional value Current notional value Sydney Futures Eurex Intercontinental Osaka Securities $ 45,235,095 121,720,673 94,405,003 93,548,628 $ 48,134,362 128,759,614 105,131,681 94,758,599 Unrealized appreciation (depreciation) $ Net unrealized appreciation 2,899,267 7,038,941 10,726,678 1,209,971 $ 21,874,857 Schedule 2 — 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 July 31, 2016. The breakdown of the Fund’s investments into major categories is disclosed in the schedule of investments above. Investments: Assets: Common stocks Preferred stocks Rights Money market funds Total Derivative financial instrumentsa: Assets: Futures contracts Total a Level 1 Level 2 Level 3 Total $59,094,091,476 346,871,760 368,780 331,269,507 $52,160,017 — — — $ 70 — — — $59,146,251,563 346,871,760 368,780 331,269,507 $59,772,601,523 $52,160,017 $ 70 $59,824,761,610 $ 21,874,857 $ — $ — $ 21,874,857 $ 21,874,857 $ — $ — $ 21,874,857 Shown at the unrealized appreciation (depreciation) on the contracts. See notes to financial statements. SCHEDULES OF INVESTMENTS 93 Schedule of Investments iSHARES® MSCI EAFE SMALL-CAP ETF July 31, 2016 Security Shares Value COMMON STOCKS — 99.31% AUSTRALIA — 6.65% Abacus Property Group Adelaide Brighton Ltd. AET&D Holdings No. 1 Pty Ltd. Ainsworth Game Technology Ltd. ALS Ltd. Altium Ltd. Ansell Ltd. APN News & Media Ltd.a ARB Corp. Ltd. Ardent Leisure Group Arrium Ltd.a,b Asaleo Care Ltd. Austal Ltd. Australian Agricultural Co. Ltd.a,b Australian Pharmaceutical Industries Ltd. Automotive Holdings Group Ltd. Aveo Group AWE Ltd.a Bapcor Ltd. Beach Energy Ltd. Bellamy’s Australia Ltd.b Billabong International Ltd.a Blackmores Ltd.b BlueScope Steel Ltd. Breville Group Ltd. BT Investment Management Ltd. BWP Trust Cabcharge Australia Ltd.b carsales.com Ltd. Cedar Woods Properties Ltd. Charter Hall Group Charter Hall Retail REIT Cleanaway Waste Management Ltd. Corporate Travel Management Ltd.b Costa Group Holdings Ltd. Cover-More Group Ltd.b Credit Corp. Group Ltd. 94 854,604 $ 1,647,834 169,200 2,059,047 7,401,898 1 630,531 1,517,559 420,933 506,047 581,316 223,494 1,482,240 18,421,369 1,142,946 1,017,303 1,001,601 5,882,445 2,345,088 7,450,109 1,811,500 3,083,079 2,388,342 140 1,181,427 896,913 1,877,176 2,896,297 1,265,115 730,698 1,483,977 1,936,177 756,174 4,851,711 264,024 832,024 21,645 1,694,154 353,769 1,846,177 2,393,632 3,947,638 1,295,000 3,287,456 2,046,586 2,369,930 986,512 2,585,154 10,880,572 2,153,746 534,417 1,754,370 545,997 712,749 300,501 782,229 1,188,108 3,651,591 5,106,956 1,643,341 6,885,323 1,055,188 3,317,495 4,343,533 5,343,012 3,472,117 191,649 798,441 1,282,485 217,125 2,275,253 1,759,880 1,335,411 2,196,494 Security Cromwell Property Group CSR Ltd. CuDeco Ltd.a,b Donaco International Ltd.a,b Downer EDI Ltd. DSHE Holdings Ltd. DuluxGroup Ltd. Eclipx Group Ltd.b Energy World Corp. Ltd.a,b ERM Power Ltd.b Estia Health Ltd. Evolution Mining Ltd. Fairfax Media Ltd. FlexiGroup Ltd./Australia G8 Education Ltd. Gateway Lifestyle GDI Property Group Genworth Mortgage Insurance Australia Ltd. GrainCorp Ltd. Class A Greencross Ltd.b GUD Holdings Ltd. GWA Group Ltd. Iluka Resources Ltd. Independence Group NL Investa Office Fund Invocare Ltd. IOOF Holdings Ltd.b IPH Ltd. Iress Ltd. iSentia Group Ltd. Jacana Minerals Ltd.b Japara Healthcare Ltd. JB Hi-Fi Ltd. Karoon Gas Australia Ltd.a,b Macquarie Atlas Roads Group Magellan Financial Group Ltd. Mantra Group Ltd. Mayne Pharma Group Ltd.a,b McMillan Shakespeare Ltd. Metals X Ltd.b Metcash Ltd.a,b Mineral Resources Ltd. Monadelphous Group Ltd.b Myer Holdings Ltd.b 2016 Shares Value 4,294,923 $ 1,603,251 1,170,710 2,320,053 1,274,379 732,050 1,166,106 632,418 5,444,338 837,544 365,928 3,330,408 7,466,205 874,869 1,023,093 1,012,980 2,259,837 3,607,113 4,679,235 413,756 793,510 4,039,027 6 5,885,024 1,792,896 1,158,631 649,307 1,426,774 7,138,200 5,958,423 1,329,888 2,985,991 2,209,657 1,691,825 726,243 650,796 275,604 312,660 911,604 1,240,962 1,403,496 2,146,932 396,615 876,607 344,505 396,615 603,897 52,407 694,800 328,872 1,273,801 1,367,019 354,348 972,720 3,182,074 252,444 1,416,234 2,914,107 108,225 302,259 2,540,849 1,622,824 4,194,526 1,470,499 2,388,254 1,461,944 6,621,216 4,288,243 7,473,532 4,416,202 6,023,037 1,756,953 3,406,353 1,441,235 — 1,367,734 6,483,940 1,277,961 6,046,996 6,151,319 2,654,144 4,909,626 2,705,368 1,759,928 4,784,112 807,758 2,419,077 2,578,115 iSHARES ANNUAL REPORT TO SHAREHOLDERS Schedule of Investments (Continued) iSHARES® MSCI EAFE SMALL-CAP ETF July 31, 2016 Security Shares MYOB Group Ltd. Navitas Ltd. NEXTDC Ltd.a Nine Entertainment Co. Holdings Ltd. Northern Star Resources Ltd. Nufarm Ltd./Australia Orora Ltd. OZ Minerals Ltd. OzForex Group Ltd.b Pact Group Holdings Ltd. Paladin Energy Ltd.a,b Perpetual Ltd. Premier Investments Ltd. Primary Health Care Ltd. Programmed Maintenance Services Ltd. Qube Holdings Ltd.b RCG Corp. Ltd.b Regis Healthcare Ltd. Regis Resources Ltd. Retail Food Group Ltd.b SAI Global Ltd. Sandfire Resources NL Select Harvests Ltd. Seven West Media Ltd. SG Fleet Group Ltd. Shopping Centres Australasia Property Group Sigma Pharmaceuticals Ltd. Sims Metal Management Ltd. Sirtex Medical Ltd. Southern Cross Media Group Ltd. Spark Infrastructure Group Spotless Group Holdings Ltd. St. Barbara Ltd.a Star Entertainment Grp Ltd. (The) Steadfast Group Ltd. Super Retail Group Ltd. Syrah Resources Ltd.a,b Tassal Group Ltd. Technology One Ltd. Ten Network Holdings Ltd.a,b SCHEDULES OF INVESTMENTS 540,207 $ 735,330 880,080 Value 1,547,903 3,319,792 2,501,704 2,047,344 1,854,537 599,265 3,480,369 983,142 862,131 582,474 7,041,798 129,117 297,027 1,573,722 1,703,912 7,428,280 3,771,303 7,591,880 4,774,845 1,631,604 2,519,016 1,097,184 4,465,159 3,661,752 4,892,079 893,397 2,419,062 1,279,590 356,664 1,482,320 479,991 705,971 588,843 282,752 3,385,413 403,563 1,398,794 4,688,450 1,818,673 1,398,785 4,540,348 2,104,995 1,910,201 2,564,462 1,635,432 2,663,141 1,229,979 1,886,382 4,979,096 512,415 185,859 3,426,649 4,900,748 3,283,156 4,445,519 2,402,850 4,809,259 3,265,560 1,587,618 2,301,120 9,576,826 2,965,977 3,632,074 2,393,007 2,453,802 469,569 703,644 1,007,460 712,749 1,356,019 10,767,325 3,935,175 3,497,580 2,438,709 3,154,766 3,087,832 1,180,085 Security Shares b TFS Corp. Ltd. Tox Free Solutions Ltd. Village Roadshow Ltd. Virtus Health Ltd. Western Areas Ltd. WorleyParsons Ltd. 1,245,429 $ 697,116 286,026 401,826 777,019 680,905 Value 1,542,939 1,404,084 1,169,580 2,360,803 1,612,265 3,819,311 396,865,227 AUSTRIA — 0.91% ams AG Austria Technologie & Systemtechnik AGb BUWOG AG CA Immobilien Anlagen AG Conwert Immobilien Invest SE EVN AG FACC AGa IMMOFINANZ AGa Kapsch TrafficCom AG Lenzing AG Oesterreichische Post AG Palfinger AG RHI AG S IMMO AG Schoeller-Bleckmann Oilfield Equipment AGb UNIQA Insurance Group AG Wienerberger AG Zumtobel Group AG 202,650 6,741,370 62,532 115,221 220,020 311,524 86,850 87,429 2,133,036 20,401 25,476 88,730 26,634 119,853 569,158 741,570 2,794,668 4,133,430 5,126,145 1,014,905 494,704 4,646,503 844,097 2,670,517 3,096,730 794,028 2,488,187 5,505,390 42,314 348,558 410,511 123,906 2,594,900 2,159,354 6,334,947 1,880,924 54,062,369 BELGIUM — 1.88% Ablynx NVa,b Ackermans & van Haaren NV Aedifica SA AGFA-Gevaert NVa Barco NV Befimmo SA Bekaert SA bpost SA Cie. d’Entreprises CFE Cofinimmo SA D’ieteren SA/NV Econocom Group SA/NV Elia System Operator SA/NV Euronav NV EVS Broadcast Equipment SA 150,820 89,745 80,141 746,910 60,795 66,585 115,800 238,548 18,528 61,455 74,112 213,892 110,589 372,168 52,689 2,072,764 10,863,688 6,353,896 2,699,471 4,679,342 4,522,622 5,307,287 6,248,769 1,707,241 7,672,821 3,248,731 2,802,050 5,894,550 3,204,563 1,778,780 95 Schedule of Investments (Continued) iSHARES® MSCI EAFE SMALL-CAP ETF July 31, 2016 Security Exmar NV Galapagos NVa,b Gimv NV Intervest Offices & Warehouses NV Ion Beam Applications KBC Ancoraa Kinepolis Group NV Melexis NV Ontex Group NV Orange Belgium SAa Sofina SA Tessenderlo Chemie NVa Warehouses De Pauw CVA Shares Value 106,886 $ 113,524 63,111 751,456 6,183,650 3,428,480 88,737 66,585 102,483 44,004 52,110 206,124 107,115 5,943 127,380 33,582 2,524,912 3,139,179 3,166,444 1,966,824 3,422,317 7,446,247 2,596,861 795,166 4,331,684 3,463,146 112,272,941 DENMARK — 1.49% ALK-Abello A/S Alm Brand A/S Amagerbanken A/Sa Ambu A/S Class Bb Bang & Olufsen A/Sa,b Bavarian Nordic A/Sa,b D/S Norden A/Sa,b Dfds A/S FLSmidth & Co. A/S GN Store Nord A/S IC Group A/S Jyske Bank A/S Registered Matas A/S NKT Holding A/S Per Aarsleff Holding A/Sb Rockwool International A/S Class B Royal Unibrew A/S Schouw & Co. SimCorp A/S Solar A/S Class B Spar Nord Bank A/S Sydbank A/S Topdanmark A/Sa TORM PLCa Zealand Pharma A/Sa 30,188 296,448 130,550 79,902 182,964 90,324 74,112 95,535 110,010 492,150 36,477 196,282 83,376 83,833 60,216 4,316,170 2,010,059 — 3,399,599 2,008,039 3,442,427 1,109,766 4,367,799 4,424,250 9,300,717 918,581 8,165,322 1,472,864 4,326,856 1,412,278 20,265 151,335 49,215 152,856 23,763 240,485 231,021 233,337 73,020 38,354 3,838,847 6,962,168 2,856,067 7,914,606 1,214,685 1,988,540 6,206,685 5,791,811 702,596 746,731 88,897,463 FINLAND — 1.48% Amer Sports OYJ 96 367,086 10,418,341 Security Cargotec OYJ Class B Caverion Corp.b Citycon OYJ Cramo OYJ F-Secure OYJb Ferratum OYJ HKScan OYJ Class A Huhtamaki OYJ Kemira OYJ Kesko OYJ Class B Konecranes OYJ Metsa Board OYJ Oriola-KD OYJ Class B Outokumpu OYJa,b Outotec OYJa,b PKC Group OYJb Ramirent OYJ Sanoma OYJ Sponda OYJ Stockmann OYJ Abp Class Ba,b Technopolis OYJ Tieto OYJ Uponor OYJ Valmet OYJ YIT OYJ Shares 92,061 $ 312,081 898,878 94,956 309,186 41,109 182,964 303,396 200,913 176,595 138,381 455,094 276,762 833,181 523,610 61,494 206,124 229,284 434,250 96,114 357,822 206,124 214,809 347,400 298,185 Value 4,127,156 2,059,010 2,247,562 2,241,557 999,210 936,412 648,581 13,330,026 2,642,132 7,871,451 4,168,820 2,659,050 1,299,855 4,793,623 2,532,990 1,138,072 1,747,177 1,839,648 1,990,961 642,190 1,540,518 5,933,025 3,992,295 4,537,449 2,025,682 88,362,793 FRANCE — 4.15% AB Science SAa,b Adociaa,b Air France-KLMa,b Akka Technologies Albioma SA Alten SA Altran Technologies SA APERAM SA Assystem Axway Software SA Boiron SA Bonduelle SCA Bourbon Corp.b Cegedim SAa Cegid Group SA Cellectis SAa,b Coface SAa DBV Technologies SAa,b 2016 50,373 10,223 403,563 29,275 114,063 79,323 555,261 136,192 27,213 18,528 16,803 22,581 119,275 22,087 17,370 72,855 277,341 58,479 iSHARES ANNUAL REPORT TO 745,241 594,115 2,342,167 1,003,382 1,965,561 5,501,359 8,059,553 5,699,707 748,297 507,614 1,557,688 583,556 1,411,153 645,627 1,189,721 1,906,401 1,412,363 4,036,782 SHAREHOLDERS Schedule of Investments (Continued) iSHARES® MSCI EAFE SMALL-CAP ETF July 31, 2016 Security Shares Derichebourg SA Elior Participations SCAc Elis SA Esso SA Francaisea Etablissements Maurel et Proma,b Euler Hermes Group Eurofins Scientific SE Europcar Groupe SAa,c Faiveley Transport SA Faurecia FFP Gaztransport Et Technigaz SA Genfita,b Groupe Fnac SAa Guerbet Haulotte Group SA Havas SA ID Logistics Groupa Innate Pharma SAa Interparfums SAb Ipsen SA IPSOS Jacquet Metal Service Korian SA LISI Manitou BF SA Marie Brizard Wine & Spirits SAa,b Mercialys SA Mersen Metropole Television SA Naturexa,b Neopost SA Nexans SAa Nexity SA Oeneo SA Orpea Parrot SAa,b Pierre & Vacances SAa,b Plastic Omnium SA Rallye SAb Rubis SCA Sartorius Stedim Biotech SEB SA SCHEDULES OF INVESTMENTS 567,999 $ 236,053 239,127 13,248 Value 1,847,060 5,153,944 4,318,573 574,954 447,168 39,951 30,848 234,495 14,475 192,228 23,739 74,112 64,269 34,740 21,423 160,383 439,208 7,418 133,170 22,182 93,798 111,168 146,510 122,169 41,109 28,371 1,425,131 3,305,520 11,571,613 1,936,788 1,497,591 7,585,905 1,796,909 2,119,548 1,728,086 2,140,138 1,443,845 2,496,529 3,701,266 1,048,594 1,591,927 582,670 6,120,312 3,663,524 2,252,730 4,327,297 1,117,075 461,612 87,429 86,850 43,425 150,540 20,844 88,238 85,692 110,012 71,796 154,624 67,454 25,476 171,964 68,832 105,378 76,428 82,352 1,570,146 2,029,809 714,318 2,739,757 1,748,161 2,451,017 4,325,067 5,849,647 665,570 13,668,407 1,049,238 1,209,339 5,456,479 1,196,136 8,506,798 5,425,360 10,967,939 Security Seche Environnement SA Sopra Steria Group SPIE SA Ste Industrielle d’Aviation Latecoere SAa Synergie SA Tarkett SA Technicolor SA Registered Teleperformance Television Francaise 1 Trigano SA Ubisoft Entertainment SAa Vallourec SAa,b Vicat SA Vilmorin & Cie SA Virbac SAa,b Shares 15,054 $ 44,004 186,762 166,004 19,107 54,426 1,093,152 187,017 354,927 31,845 289,500 864,447 43,425 11,580 11,580 Value 526,909 5,166,787 3,552,482 608,880 634,582 1,753,431 6,877,322 17,397,679 3,431,971 1,886,654 11,889,114 3,148,439 2,593,106 767,378 2,281,674 247,809,024 GERMANY — 5.78% Aareal Bank AG ADLER Real Estate AGa,b ADO Properties SAc ADVA Optical Networking SEa,b AIXTRON SEa Alstria office REIT AG Amadeus Fire AG AURELIUS Equity Opportunities SE & Co KGaA Aurubis AG Bauer AG BayWa AGb Bechtle AG Bertrandt AGb Bijou Brigitte AG Borussia Dortmund GmbH & Co. KGaA BRAAS Monier Building Group SA CANCOM SEb Carl Zeiss Meditec AG Bearer CENTROTEC Sustainable AG CompuGroup Medical SE CTS Eventim AG & Co. KGaA Deutsche Euroshop AG Deutsche Pfandbriefbank AGc DEUTZ AG 158,646 70,059 87,429 143,592 185,445 254,340 16,212 5,208,639 1,051,370 3,561,182 1,286,180 1,164,197 3,540,977 1,236,584 74,112 118,696 42,846 26,055 41,688 19,891 9,360 4,515,901 6,166,722 591,720 824,549 4,820,263 2,174,710 603,308 413,985 1,827,220 61,953 53,268 100,746 55,584 72,375 132,591 100,167 319,608 393,335 1,499,197 2,752,292 3,762,820 876,411 3,125,647 4,615,644 4,750,981 3,066,508 1,811,290 97 Schedule of Investments (Continued) iSHARES® MSCI EAFE SMALL-CAP ETF July 31, 2016 Security Shares a,b Dialog Semiconductor PLC DMG Mori AG Draegerwerk AG & Co. KGaA Drillisch AGb Duerr AG ElringKlinger AGb Evotec AGa Freenet AG Gerresheimer AG Gesco AG GFT Technologies SE Grammer AG Grand City Properties SA GRENKE AG Heidelberger Druckmaschinen AGa,b Indus Holding AG Jenoptik AG KION Group AG Kloeckner & Co. SEa Koenig & Bauer AGa Krones AG KUKA AG KWS Saat SE LEG Immobilien AG LEONI AGb Manz AGa,b MLP AG MorphoSys AGa,b MTU Aero Engines AG Nemetschek SE Nordex SEa NORMA Group SE PATRIZIA Immobilien AGa Pfeiffer Vacuum Technology AG Rational AG Rheinmetall AG RHOEN-KLINIKUM AG RIB Software AGb SAF-Holland SA Salzgitter AG SGL Carbon SEa,b Sixt SEb SLM Solutions Group AGa,b SMA Solar Technology AGb 98 222,915 $ 181,806 14,475 143,592 71,796 79,902 295,869 308,607 103,641 15,633 40,530 34,740 334,083 27,792 931,611 50,952 139,539 190,491 314,552 31,005 41,109 81,796 6,369 192,807 97,272 17,949 355,031 75,270 129,117 50,373 203,808 89,745 161,111 33,003 9,843 120,432 217,704 124,485 158,646 121,590 142,434 40,530 45,162 36,477 Value 7,302,506 8,680,092 825,844 5,704,314 6,192,453 1,457,753 1,353,861 8,615,420 8,897,382 1,220,216 928,209 1,670,465 7,434,411 5,438,723 2,679,444 2,525,510 2,390,526 10,444,207 4,217,458 1,715,712 4,111,112 9,942,617 2,032,658 19,359,310 3,600,979 624,223 1,373,667 3,333,160 13,196,803 3,169,105 5,633,896 4,665,113 4,068,068 3,413,032 4,762,703 8,433,232 6,414,845 1,392,054 1,915,098 3,793,510 1,735,322 2,170,504 1,252,713 1,832,714 Security Software AG STADA Arzneimittel AG STRATEC Biomedical AG Stroeer SE & Co. KGaAb Suedzucker AG TAG Immobilien AG Takkt AG TLG Immobilien AG Vossloh AGa,b VTG AGb Wacker Chemie AG Wacker Neuson SEb Wincor Nixdorf AGa Wirecard AGb XING AG zooplus AGa Shares 198,018 $ 187,596 16,212 85,113 230,442 327,135 108,273 194,544 42,923 22,002 51,531 85,692 78,936 383,363 14,475 17,949 Value 7,987,115 10,127,097 930,022 4,046,002 5,764,568 4,656,874 2,600,114 4,357,505 2,651,926 620,014 4,800,703 1,530,806 4,933,423 17,829,461 2,890,131 2,592,232 345,073,249 HONG KONG — 2.60% Bright Smart Securities & Commodities Group Ltd. Brightoil Petroleum Holdings Ltd.b Cafe de Coral Holdings Ltd. Champion REIT China Financial International Investments Ltd.a,b China LNG Group Ltd.b China Soft Power Technology Holdings Ltd.a China Strategic Holdings Ltd.a,b Chow Sang Sang Holdings International Ltd.b Citic Telecom International Holdings Ltd. CK Life Sciences International Holdings Inc.b CSI Properties Ltd.b Dah Sing Banking Group Ltd.b Dah Sing Financial Holdings Ltd. Daohe Global Group Ltd.a Emperor Capital Group Ltd.b Enerchina Holdings Ltd.a Esprit Holdings Ltd.a,b Freeman Financial Corp. Ltd.a 2016 3,510,000 995,110 10,160,512 2,340,000 12,472,000 2,985,324 7,870,412 7,200,376 17,550,000 78,780,000 893,337 2,416,206 16,212,000 59,850,000 532,743 1,542,536 1,170,000 2,288,752 5,790,000 2,178,725 15,328,000 44,140,000 1,872,000 1,402,442 1,678,013 3,502,786 468,000 11,700,000 13,602,000 20,847,000 6,085,800 23,400,000 3,136,103 874,490 1,209,464 873,108 4,878,083 1,206,193 iSHARES ANNUAL REPORT TO SHAREHOLDERS Schedule of Investments (Continued) iSHARES® MSCI EAFE SMALL-CAP ETF July 31, 2016 Security Shares G-Resources Group Ltd. GCL New Energy Holdings Ltd.a,b Giordano International Ltd. Great Eagle Holdings Ltd. Guotai Junan International Holdings Ltd.b Haitong International Securities Group Ltd. HKBN Ltd.b Hopewell Holdings Ltd. Hutchison Telecommunications Hong Kong Holdings Ltd. Hybrid Kinetic Group Ltd.a,b IGG Inc.b IT Ltd. Johnson Electric Holdings Ltd. Kerry Logistics Network Ltd. KuangChi Science Ltd.a,b Lai Sun Development Co. Ltd.b Landing International Development Ltd.a,b Luk Fook Holdings International Ltd.b Man Wah Holdings Ltd. Mason Financial Holdings Ltd.a,b Melco International Development Ltd.b NewOcean Energy Holdings Ltd. Orient Overseas International Ltd.b Pacific Textiles Holdings Ltd.b Playmates Toys Ltd.b Prosperity REIT Realord Group Holdings Ltd.a,b Sa Sa International Holdings Ltd.b Samson Holding Ltd. Shun Tak Holdings Ltd. Sincere Watch Hong Kong Ltd.a,b Singamas Container Holdings Ltd. SCHEDULES OF Value 87,911,400 $ 1,540,725 23,980,000 5,850,000 1,170,000 1,050,677 3,068,254 5,284,635 8,685,000 2,909,941 5,850,000 3,474,000 1,755,000 3,528,116 4,145,547 5,823,652 8,190,000 60,616,000 2,895,000 3,510,000 1,533,750 2,047,500 4,053,000 91,067,665 2,997,391 2,109,075 1,234,860 1,072,004 3,854,165 2,923,511 1,410,202 1,642,984 40,530,000 793,892 1,170,000 4,680,000 2,970,251 3,413,527 35,100,000 1,289,119 2,925,000 3,000,406 4,680,000 1,393,153 585,000 2,340,000 4,680,000 7,281,000 1,170,000 2,073,145 3,317,032 886,552 3,246,446 625,713 3,510,000 7,297,000 7,020,000 1,528,850 780,483 2,270,659 17,550,000 757,640 8,836,000 831,227 Security SITC International Holdings Co. Ltd.b SmarTone Telecommunications Holdings Ltd.b Summit Ascent Holdings Ltd.a,b Suncorp Technologies Ltd.a,b Television Broadcasts Ltd. Texwinca Holdings Ltd.b Town Health International Medical Group Ltd.b Truly International Holdings Ltd. United Laboratories International Holdings Ltd. (The)a Value Partners Group Ltd.b VST Holdings Ltd. VTech Holdings Ltd.b Xinyi Glass Holdings Ltd.b Yuan Heng Gas Holdings Ltd.a Shares 4,414,000 $ Value 2,610,875 1,462,500 5,790,000 57,900,000 583,100 2,340,000 2,604,624 1,216,206 596,911 1,976,241 1,839,445 13,896,000 7,020,000 2,220,509 3,817,602 2,340,000 3,510,000 4,896,000 585,000 5,850,000 9,264,000 913,691 2,953,666 1,167,224 6,358,901 4,462,915 680,479 154,857,326 IRELAND — 0.86% C&C Group PLC FBD Holdings PLCa Glanbia PLC Hibernia REIT PLC Irish Continental Group PLC Kingspan Group PLC Origin Enterprises PLC Permanent TSB Group Holdings PLCa Smurfit Kappa Group PLC 1,208,952 194,652 554,682 1,765,950 470,148 446,988 330,609 4,872,288 1,345,416 10,684,210 2,685,693 2,481,508 10,274,305 1,996,770 500,836 679,746 1,195,168 15,962,653 51,498,011 INVESTMENTS ISRAEL — 1.42% Africa Israel Properties Ltd. Airport City Ltd.a Alony Hetz Properties & Investments Ltd. Amot Investments Ltd. B Communications Ltd. Bayside Land Corp. Caesarstone Ltd.a,b Cellcom Israel Ltd.a Clal Insurance Enterprises Holdings Ltd.a,b CyberArk Software Ltd.a,b 79,663 296,961 1,289,607 3,218,621 238,781 353,191 39,951 2,895 67,164 177,753 2,094,361 1,510,472 1,005,431 1,078,580 2,517,978 1,294,182 95,006 61,953 1,018,758 3,493,530 99 Schedule of Investments (Continued) iSHARES® MSCI EAFE SMALL-CAP ETF July 31, 2016 Security Shares Delek Automotive Systems Ltd. Elbit Systems Ltd. Electra Ltd./Israel First International Bank of Israel Ltd.b Frutarom Industries Ltd. Gazit-Globe Ltd. Harel Insurance Investments & Financial Services Ltd. IDI Insurance Co. Ltd. Israel Discount Bank Ltd. Class Aa Ituran Location and Control Ltd.b Jerusalem Oil Explorationa Kornit Digital Ltd.a Matrix IT Ltd.b Melisron Ltd.b Menora Mivtachim Holdings Ltd.a Naphtha Israel Petroleum Corp. Ltd.a Neuroderm Ltd.a Norstar Holdings Inc.b Oil Refineries Ltd.a,b Partner Communications Co. Ltd.a Paz Oil Co. Ltd. Phoenix Holdings Ltd. (The)a Plus500 Ltd.b Rami Levy Chain Stores Hashikma Marketing 2006 Ltd. Sapiens International Corp. NV Shikun & Binui Ltd.b Shufersal Ltd. Strauss Group Ltd.b Tower Semiconductor Ltd.a Wix.com Ltd.a,b 92,913 $ 66,585 8,238 Value 823,965 6,697,982 1,128,689 125,064 141,855 224,799 1,592,750 7,149,694 2,232,419 422,670 23,160 1,555,874 1,139,953 3,081,438 5,311,709 119,412 74,692 82,218 270,008 81,262 2,861,112 3,306,003 830,402 1,875,902 3,494,486 136,065 1,101,686 364,772 37,835 73,014 2,896,737 2,252,905 711,676 1,313,961 1,041,226 306,291 18,041 317,871 234,495 1,468,210 2,963,128 776,788 2,303,909 43,506 97,272 525,459 374,034 108,852 199,904 71,607 1,693,942 1,257,946 931,692 1,313,054 1,761,270 2,700,603 2,549,209 84,663,665 ITALY — 3.62% A2A SpA ACEA SpA Amplifon SpA Anima Holding SpAc 100 4,296,180 132,012 187,596 657,165 6,101,341 1,837,900 1,871,232 3,292,240 Security Ansaldo STS SpA Astaldi SpAb Autogrill SpA Azimut Holding SpA Banca Generali SpA Banca IFIS SpA Banca Mediolanum SpA Banca Monte dei Paschi di Siena SpAa,b Banca Popolare dell’Emilia Romagna SC Banca Popolare di Milano Scarl Banca Popolare di Sondrio Scarl Banco Popolare SC Beni Stabili SpA SIIQ Biesse SpA Brembo SpA Buzzi Unicem SpAb Cairo Communication SpAb Cerved Information Solutions SpA CIR-Compagnie Industriali Riunite SpA Credito Emiliano SpA Credito Valtellinese SCb Danieli & C Officine Meccaniche SpA RSP Datalogic SpA Davide Campari-Milano SpA De’ Longhi SpA DiaSorin SpA Ei Towers SpAa ERG SpA Esprinet SpAb Fincantieri SpAa,b FinecoBank Banca Fineco SpA Geox SpAb Gruppo Editoriale L’Espresso SpAa Hera SpA Industria Macchine Automatiche SpA Infrastrutture Wireless Italiane SpAc 2016 Shares 340,622 $ 144,750 515,310 306,526 200,913 70,638 797,283 Value 3,991,840 633,223 4,483,191 4,819,386 4,151,921 1,611,416 5,848,648 7,148,914 2,463,836 1,294,066 10,524,126 5,310,820 5,107,576 1,465,450 2,269,680 4,798,358 48,636 82,797 312,081 81,639 3,962,474 6,390,862 3,141,656 681,472 4,837,712 6,253,807 364,076 545,418 4,574,355 3,005,589 131,433 2,440,486 3,451,749 833,348 1,082,351 205,546 56,163 1,126,156 172,542 82,797 41,109 170,942 88,008 1,485,714 521,104 137,802 3,045,538 1,013,662 11,629,862 4,312,325 5,212,693 2,218,520 1,978,464 549,648 647,946 3,094,269 396,954 1,069,645 2,535,450 913,844 7,190,240 34,161 2,015,079 510,678 2,553,807 iSHARES ANNUAL REPORT TO SHAREHOLDERS Schedule of Investments (Continued) iSHARES® MSCI EAFE SMALL-CAP ETF July 31, 2016 Security Shares Interpump Group SpA Iren SpA Italcementi SpAa Italmobiliare SpAb Juventus Football Club SpAa,b La Doria SpA Maire Tecnimont SpA MARR SpA Mediaset SpA Moleskine SpA Moncler SpA Newron Pharmaceuticals SpAa,b OVS SpAc Piaggio & C SpAb RAI Way SpAc Recordati SpA Reply SpA Rizzoli Corriere Della Sera Mediagroup SpAa,b Safilo Group SpAa,b Salini Impregilo SpAb Salvatore Ferragamo SpA Saras SpAb Societa Cattolica di Assicurazioni Scrl Tod’s SpAb TREVI-Finanziaria Industriale SpAb Unipol Gruppo Finanziario SpA Vittoria Assicurazioni SpA Yoox Net-A-Porter Group SpAa,b 240,285 $ 1,335,174 493,308 15,590 6,540,384 31,845 482,307 247,813 2,266,206 374,613 377,508 48,636 320,766 468,990 254,181 400,089 31,978 Value 3,890,759 2,194,797 5,841,888 673,631 2,131,969 423,055 1,227,538 5,212,571 6,862,576 909,037 6,619,289 996,423 1,886,745 859,571 1,182,430 12,979,066 4,577,205 1,145,103 103,899 632,847 156,909 754,372 1,044,898 825,495 1,914,986 3,695,263 1,297,421 470,727 42,268 3,318,893 2,483,840 387,930 1,206,637 45,741 508,851 3,346,320 468,022 170,226 4,766,497 216,010,319 JAPAN — 32.11% 77 Bank Ltd. (The) Accordia Golf Co. Ltd. Achilles Corp. Activia Properties Inc. Adastria Co. Ltd. ADEKA Corp. Advance Residence Investment Corp. Advantest Corp. Adways Inc.b Aeon Delight Co. Ltd. SCHEDULES OF INVESTMENTS 1,170,000 292,500 1,170,000 1,755 146,680 292,500 4,532,273 3,422,037 1,609,699 9,161,585 4,608,573 3,910,084 4,095 468,000 175,500 58,500 11,371,781 6,265,268 1,046,304 1,789,506 Security AEON REIT Investment Corp. Ai Holdings Corp. Aica Kogyo Co. Ltd. Aida Engineering Ltd. Aiful Corp.a,b Ain Holdings Inc. Akebono Brake Industry Co. Ltd.a,b Alpine Electronics Inc. Amano Corp. Anicom Holdings Inc.b Anritsu Corp. Aoyama Trading Co. Ltd. Arcs Co. Ltd. Ardepro Co. Ltd.b Ariake Japan Co. Ltd. Asahi Diamond Industrial Co. Ltd. Asahi Holdings Inc. Asahi Intecc Co. Ltd. Asatsu-DK Inc. Ashikaga Holdings Co. Ltd. ASKA Pharmaceutical Co. Ltd. ASKUL Corp.b Asukanet Co. Ltd.b Autobacs Seven Co. Ltd. Avex Group Holdings Inc. Awa Bank Ltd. (The) Azbil Corp. Bank of Iwate Ltd. (The) Bank of Nagoya Ltd. (The) Benefit One Inc.b BIC Camera Inc. Broadleaf Co. Ltd. Bunka Shutter Co. Ltd. Calsonic Kansei Corp. Canon Marketing Japan Inc. Capcom Co. Ltd. Central Glass Co. Ltd. Century Tokyo Leasing Corp. Chiyoda Corp. Ci:z Holdings Co. Ltd. Citizen Holdings Co. Ltd. CKD Corp. Clarion Co. Ltd. Shares Value 3,510 $ 175,500 175,500 234,000 984,300 58,500 4,435,234 4,344,475 4,289,677 1,968,171 2,986,947 4,047,080 499,300 175,500 175,500 58,500 468,000 175,500 117,000 796,700 58,500 1,032,850 1,923,077 2,858,072 1,582,871 2,739,913 6,498,732 3,033,312 932,858 3,230,814 234,000 58,500 175,500 117,000 688,900 117,000 58,500 58,500 234,000 117,000 1,170,000 292,500 58,500 1,170,000 117,000 292,500 117,000 234,000 585,000 234,000 234,000 585,000 175,500 585,000 117,000 636,900 234,000 585,000 1,819,759 1,002,922 8,125,555 2,757,038 2,319,076 2,230,746 2,034,956 602,210 3,406,625 1,384,798 7,237,937 8,890,447 2,505,879 4,052,788 3,636,093 2,608,626 1,179,304 1,938,489 4,583,646 4,057,355 4,803,981 2,545,836 6,147,680 4,155,535 2,890,608 3,442,871 2,207,913 1,461,287 101 Schedule of Investments (Continued) iSHARES® MSCI EAFE SMALL-CAP ETF July 31, 2016 Security Coca-Cola East Japan Co. Ltd. Coca-Cola West Co. Ltd. COLOPL Inc.b Colowide Co. Ltd.b Comforia Residential REIT Inc. COMSYS Holdings Corp. COOKPAD Inc.b Cosmo Energy Holdings Co. Ltd. Cosmos Pharmaceutical Corp. CyberAgent Inc. Daido Steel Co. Ltd. Daifuku Co. Ltd. Daihen Corp. Daiichikosho Co. Ltd. Daikokutenbussan Co. Ltd. Daikyo Inc. Daio Paper Corp.b Daiseki Co. Ltd. Daishi Bank Ltd. (The) Daiwa House REIT Investment Corp. Daiwa House Residential Investment Corp. Daiwa Office Investment Corp. Daiwabo Holdings Co. Ltd. DCM Holdings Co. Ltd. DeNA Co. Ltd. Denka Co. Ltd. Descente Ltd. Dexerials Corp.a DIC Corp. Digital Garage Inc.b Dip Corp. Disco Corp. DMG Mori Co. Ltd. Dowa Holdings Co. Ltd. Duskin Co. Ltd. Ebara Corp. EDION Corp.b Euglena Co. Ltd.a,b Exedy Corp. Ezaki Glico Co. Ltd. F@N Communications Inc. Fancl Corp. 102 Shares 234,000 $ 234,000 175,500 234,000 2,340 351,000 175,500 Value 4,536,840 6,489,028 2,652,578 4,367,878 5,575,723 5,880,539 2,477,909 234,000 18,000 175,500 975,000 292,500 585,000 117,000 60,500 1,170,000 351,000 117,000 1,755,000 2,602,917 3,776,162 9,949,310 3,986,193 6,199,054 3,042,445 5,377,080 2,626,970 2,066,351 3,976,299 2,125,716 6,747,036 1,170 7,169,439 2,340 1,170 1,170,000 351,000 292,500 1,170,000 175,500 175,500 234,000 155,000 117,000 117,000 351,000 585,000 292,500 1,170,000 351,000 175,500 175,500 124,200 175,500 117,000 6,566,659 6,975,362 2,739,913 3,013,904 7,557,594 5,125,921 1,969,313 1,428,180 5,605,406 2,958,287 3,550,471 12,124,116 3,736,557 3,110,943 5,342,831 6,415,963 2,941,982 2,390,574 4,195,492 7,465,210 1,429,892 1,964,746 Security Financial Products Group Co. Ltd. FP Corp. Frontier Real Estate Investment Corp. Fudo Tetra Corp. Fuji Machine Manufacturing Co. Ltd. Fuji Oil Holdings Inc. Fuji Seal International Inc. Fuji Soft Inc. Fujibo Holdings Inc. Fujikura Ltd. Fujimi Inc. Fujitec Co. Ltd. Fukuoka REIT Corp. Funai Electric Co. Ltd.b Funai Soken Holdings Inc. Furukawa Co. Ltd. Furukawa Electric Co. Ltd. Futaba Industrial Co. Ltd. Fuyo General Lease Co. Ltd. Geo Holdings Corp. Global One Real Estate Investment Corp.b Glory Ltd. GLP J-REIT GMO Internet Inc. GMO Payment Gateway Inc.b Gree Inc.a GS Yuasa Corp. Gunze Ltd. Gurunavi Inc. H2O Retailing Corp. Hanwa Co. Ltd. Harmonic Drive Systems Inc.b Haseko Corp. Hazama Ando Corp. Heiwa Corp. Heiwa Real Estate Co. Ltd. Heiwa Real Estate REIT Inc. HIS Co. Ltd.b Hitachi Capital Corp. Hitachi Zosen Corp. Hogy Medical Co. Ltd. 2016 Shares 234,000 $ 58,500 Value 2,367,742 3,065,278 1,170 1,042,200 6,256,135 1,830,473 292,500 234,000 58,500 117,000 585,000 1,170,000 58,500 175,500 1,755 117,000 126,640 1,170,000 2,340,000 440,600 58,500 117,000 3,016,759 5,144,187 2,320,364 2,929,424 1,740,986 6,667,122 994,360 1,705,596 3,630,385 1,014,910 1,764,570 1,929,356 6,164,805 2,269,960 2,682,832 1,701,029 1,170 234,000 7,020 234,000 58,500 351,000 1,170,000 585,000 117,000 292,500 1,170,000 117,000 877,500 585,000 117,000 234,000 2,925 175,500 175,500 579,000 117,000 4,646,436 6,552,959 8,918,417 3,064,136 3,367,810 1,780,944 4,829,097 1,689,613 3,098,385 3,878,690 6,324,633 3,658,926 9,409,889 3,624,677 2,413,407 3,112,085 2,465,922 4,698,951 3,253,647 2,966,044 7,546,177 iSHARES ANNUAL REPORT TO SHAREHOLDERS Schedule of Investments (Continued) iSHARES® MSCI EAFE SMALL-CAP ETF July 31, 2016 Security Shares Hokkaido Electric Power Co. Inc. Hokkoku Bank Ltd. (The) Hokuetsu Kishu Paper Co. Ltd. Hokuhoku Financial Group Inc. HORIBA Ltd. Hoshino Resorts REIT Inc. Hosiden Corp. House Foods Group Inc. Hulic Reit Inc. Hyakugo Bank Ltd. (The) Hyakujushi Bank Ltd. (The) Ibiden Co. Ltd. IBJ Leasing Co. Ltd. Ichigo Inc. Ichigo Office REIT Investment IDOM Inc.b Iino Kaiun Kaisha Ltd. Inabata & Co. Ltd. Industrial & Infrastructure Fund Investment Corp. Ines Corp. Infomart Corp.b Internet Initiative Japan Inc. Invesco Office J-Reit Inc. Invincible Investment Corp. Iriso Electronics Co. Ltd. Iseki & Co. Ltd. Ishihara Sangyo Kaisha Ltd.a Ito EN Ltd. Itoki Corp. IwaiCosmo Holdings Inc. Iwatani Corp.b Izumi Co. Ltd. J Trust Co. Ltd. Jaccs Co. Ltd. Jafco Co. Ltd. Japan Communications Inc.a,b Japan Digital Laboratory Co. Ltd. Japan Display Inc.a,b Japan Excellent Inc. Japan Hotel REIT Investment Corp. Japan Logistics Fund Inc. SCHEDULES OF INVESTMENTS Value 585,000 $ 1,755,000 468,000 2,340,000 117,000 206 351,000 292,500 2,925 1,170,000 1,755,000 292,500 117,000 810,600 4,095 234,000 498,100 234,000 4,657,852 5,548,324 3,324,428 3,036,737 5,536,908 2,522,613 2,174,806 7,197,980 5,171,586 4,543,689 5,907,938 3,781,651 2,140,557 3,575,071 3,200,561 1,196,429 1,822,584 2,358,609 1,170 175,500 175,500 117,000 1,755 9,945 58,500 1,170,000 2,925,000 175,500 234,000 175,500 585,000 175,500 234,000 585,000 117,000 510,200 6,724,204 1,883,690 1,909,377 2,481,905 1,613,124 6,695,663 3,447,724 2,568,669 1,912,231 6,498,732 1,333,424 1,554,901 3,419,183 7,663,195 1,774,094 2,728,497 3,109,801 1,070,332 234,000 1,389,600 4,680 3,239,947 2,535,544 6,621,457 10,530 4,680 8,856,769 10,936,820 Security Japan Petroleum Exploration Co. Ltd. Japan Rental Housing Investments Inc. Japan Securities Finance Co. Ltd. Japan Steel Works Ltd. (The) Jin Co. Ltd.b Juki Corp. Juroku Bank Ltd. (The) JVC Kenwood Corp. K’s Holdings Corp. kabu.com Securities Co. Ltd. Kadokawa Dwangoa Kagome Co. Ltd. Kaken Pharmaceutical Co. Ltd. Kanamoto Co. Ltd. Kanematsu Corp. Kawasaki Kisen Kaisha Ltd.b Keihin Corp. Keiyo Bank Ltd. (The) Kenedix Inc. Kenedix Office Investment Corp. Kenedix Residential Investment Corp. Kenedix Retail REIT Corp. Kewpie Corp. Kinden Corp. Kintetsu World Express Inc. Kitz Corp. Kiyo Bank Ltd. (The) Koa Corp. Kobayashi Pharmaceutical Co. Ltd. Kokuyo Co. Ltd. Komeri Co. Ltd. Komori Corp. Konishi Co. Ltd. Kumagai Gumi Co. Ltd. KYB Corp. Kyodo Printing Co. Ltd. KYORIN Holdings Inc. Kyowa Exeo Corp. Laox Co. Ltd.a,b Shares Value 117,000 $ 2,447,656 5,265 4,505,445 694,800 1,170,000 58,500 117,000 1,755,000 579,080 351,020 810,600 180,467 351,000 99,600 58,500 1,170,000 2,925,000 117,000 1,755,000 810,600 2,833,843 5,274,333 2,440,235 1,019,476 5,051,715 1,350,443 6,524,790 2,728,760 2,454,710 9,562,297 6,637,732 1,227,824 1,929,356 7,249,354 1,858,574 7,551,886 3,298,241 1,170 7,306,435 1,170 1,755 351,000 585,000 117,000 579,000 409,500 234,000 3,181,724 4,796,560 10,839,781 7,112,358 1,643,948 3,129,882 6,017,534 1,949,905 351,000 292,500 175,500 175,500 117,000 1,170,000 585,000 616,000 175,500 292,500 175,500 16,730,595 4,321,071 3,972,874 1,979,587 1,535,493 3,927,209 2,106,308 1,983,510 3,786,217 3,830,170 1,185,012 103 Schedule of Investments (Continued) iSHARES® MSCI EAFE SMALL-CAP ETF July 31, 2016 Security Leopalace21 Corp. Lintec Corp. Lion Corp. Macnica Fuji Electronics Holdings Inc. Maeda Corp. Maeda Kosen Co. Ltd.b Maeda Road Construction Co. Ltd. Makino Milling Machine Co. Ltd. Maruha Nichiro Corp. Marusan Securities Co. Ltd. Marvelous Inc.b Matsui Securities Co. Ltd. Matsumotokiyoshi Holdings Co. Ltd. Matsuya Co. Ltd.b MCUBS MidCity Investment Corp. MEGMILK SNOW BRAND Co. Ltd. Meidensha Corp. Meitec Corp. Micronics Japan Co. Ltd. Ministop Co. Ltd. Mirait Holdings Corp. Misawa Homes Co. Ltd. MISUMI Group Inc. Mitsuba Corp. Mitsubishi Steel Manufacturing Co. Ltd. Mitsui Engineering & Shipbuilding Co. Ltd. Mitsui Mining & Smelting Co. Ltd. Mitsumi Electric Co. Ltd.a,b Miura Co. Ltd. Mizuno Corp. Modec Inc. Monex Group Inc. MonotaRO Co. Ltd. Mori Hills REIT Investment Corp. MORI TRUST Sogo REIT Inc. Morinaga & Co. Ltd./Japan 104 Shares Value 760,500 $ 117,000 585,000 5,498,663 2,496,746 8,887,593 133,550 585,000 117,000 1,304,421 5,325,706 1,271,776 141,000 585,000 292,500 351,000 117,000 351,000 2,684,207 3,339,269 7,437,723 2,931,707 908,738 3,099,527 117,000 175,500 5,211,543 1,345,982 1,755 6,387,423 175,500 585,000 175,500 117,000 117,000 234,000 175,500 819,000 117,000 6,096,307 2,014,978 5,882,251 1,049,158 1,964,746 2,500,171 1,298,034 15,199,668 1,401,922 1,755,000 2,945,407 2,340,000 3,470,557 2,340,000 347,400 292,500 1,170,000 58,500 694,870 234,000 4,498,024 1,762,677 6,738,474 6,153,388 919,013 1,728,954 6,845,216 4,680 3,510 585,000 7,329,268 6,497,019 3,870,127 Security Morinaga Milk Industry Co. Ltd. MOS Food Services Inc. Musashino Bank Ltd. (The) Nachi-Fujikoshi Corp. Nagase & Co. Ltd. Nakanishi Inc. Namura Shipbuilding Co. Ltd. Nankai Electric Railway Co. Ltd. NanoCarrier Co. Ltd.a,b Nanto Bank Ltd. (The) NET One Systems Co. Ltd. Next Co. Ltd.b Nichi-Iko Pharmaceutical Co. Ltd. Nichicon Corp. Nichiha Corp. Nichirei Corp. Nifco Inc./Japan Nihon Kohden Corp. Nihon M&A Center Inc. Nihon Nohyaku Co. Ltd.b Nihon Parkerizing Co. Ltd. Nihon Unisys Ltd. Nikkiso Co. Ltd. Nikkon Holdings Co. Ltd. Nippo Corp. Nippon Accommodations Fund Inc. Nippon Gas Co. Ltd. Nippon Kayaku Co. Ltd. Nippon Light Metal Holdings Co. Ltd. Nippon Paper Industries Co. Ltd. Nippon Parking Development Co. Ltd.b NIPPON REIT Investment Corp. Nippon Seiki Co. Ltd. Nippon Sharyo Ltd.a,b Nippon Sheet Glass Co. Ltd.a,b Nippon Shinyaku Co. Ltd. Nippon Shokubai Co. Ltd. Nippon Soda Co. Ltd. Nippon Steel & Sumikin Bussan Corp. 2016 Shares Value 585,000 $ 117,000 175,500 585,000 409,500 58,500 234,000 1,755,000 117,000 1,170,000 373,400 175,500 4,349,612 3,423,750 4,454,071 1,935,064 4,822,818 2,017,832 1,342,557 9,760,941 1,019,476 4,623,603 2,532,205 1,714,158 175,500 292,500 117,000 585,000 175,500 351,000 117,000 289,500 585,000 234,000 292,500 351,000 132,000 3,817,042 2,191,931 2,286,686 5,593,989 9,949,310 9,829,438 7,180,856 1,579,065 7,118,066 3,207,982 2,066,351 7,075,826 2,435,595 1,170 117,000 585,000 5,342,831 2,789,003 6,102,015 1,968,600 4,494,828 292,500 5,331,414 911,500 1,170 213,000 1,170,000 2,925,000 133,000 117,000 585,000 1,102,854 3,086,969 3,558,140 3,173,733 2,169,098 7,345,270 7,454,847 2,597,209 585,000 2,014,978 iSHARES ANNUAL REPORT TO SHAREHOLDERS Schedule of Investments (Continued) iSHARES® MSCI EAFE SMALL-CAP ETF July 31, 2016 Security Shares Nippon Suisan Kaisha Ltd. Nipro Corp. Nishi-Nippon City Bank Ltd. (The) Nishi-Nippon Railroad Co. Ltd. Nishimatsu Construction Co. Ltd. Nishimatsuya Chain Co. Ltd. Nishio Rent All Co. Ltd. Nissan Chemical Industries Ltd. Nissan Shatai Co. Ltd. Nissha Printing Co. Ltd.b Nisshin OilliO Group Ltd. (The) Nisshin Steel Co. Ltd. Nisshinbo Holdings Inc. Nitto Boseki Co. Ltd. Nitto Kogyo Corp. Noevir Holdings Co. Ltd. NOF Corp. Nojima Corp. Nomura Co. Ltd. North Pacific Bank Ltd. NSD Co. Ltd. NTN Corp. Obara Group Inc. Ogaki Kyoritsu Bank Ltd. (The) Okasan Securities Group Inc. Oki Electric Industry Co. Ltd. Okinawa Electric Power Co. Inc. (The) OKUMA Corp. Okumura Corp. OncoTherapy Science Inc.a,b Open House Co. Ltd. Orient Corp.a Orix JREIT Inc. OSG Corp.b OSJB Holdings Corp. Pacific Metals Co. Ltd.a Paramount Bed Holdings Co. Ltd. Penta-Ocean Construction Co. Ltd. PeptiDream Inc.a,b Pigeon Corp. SCHEDULES OF INVESTMENTS 868,500 $ 351,000 Value 4,330,424 4,390,711 2,340,000 1,170,000 4,589,355 6,130,556 585,000 351,000 117,000 409,500 234,000 117,000 1,170,000 292,500 409,500 1,170,000 117,000 58,500 585,000 117,000 175,500 1,420,900 375,540 1,755,000 58,500 1,755,000 585,000 2,340,000 2,911,158 5,024,316 2,855,218 13,145,875 2,372,308 2,333,493 5,536,908 3,658,926 3,839,874 4,281,114 1,618,832 1,789,506 5,091,672 2,050,368 2,650,866 4,686,190 6,247,702 5,770,942 2,425,965 5,839,440 2,991,072 3,219,398 260,100 585,000 585,000 453,300 117,000 1,331,700 7,020 292,500 685,900 585,000 5,238,292 4,532,273 3,481,973 1,105,772 3,366,668 2,520,855 12,911,841 4,897,595 1,385,386 1,592,575 58,500 2,231,888 984,300 117,000 351,000 6,031,521 6,552,959 8,836,220 Security Pilot Corp. Pioneer Corp.a Premier Investment Corp. Press Kogyo Co. Ltd. Prima Meat Packers Ltd. Proto Corp. Qol Co. Ltd. Raito Kogyo Co. Ltd. Relia Inc. Relo Group Inc. Rengo Co. Ltd. Resorttrust Inc. Ricoh Leasing Co. Ltd. Ringer Hut Co. Ltd.b Riso Kagaku Corp. Rohto Pharmaceutical Co. Ltd. Round One Corp. Ryobi Ltd. Ryosan Co. Ltd. S Foods Inc.b Sac’s Bar Holdings Inc.b Saizeriya Co. Ltd. San-in Godo Bank Ltd. (The) Sangetsu Co. Ltd. Sanken Electric Co. Ltd. Sanki Engineering Co. Ltd. Sankyo Tateyama Inc. Sankyu Inc. Sanwa Holdings Corp. Sanyo Shokai Ltd. Sanyo Special Steel Co. Ltd. Sapporo Holdings Ltd. Sato Holdings Corp. Sawada Holdings Co. Ltd. Sawai Pharmaceutical Co. Ltd. SCREEN Holdings Co. Ltd. SCSK Corp. Seikagaku Corp. Seiko Holdings Corp. Seino Holdings Co. Ltd. Seiren Co. Ltd. Sekisui House SI Residential Investment Corp. Senshu Ikeda Holdings Inc. Septeni Holdings Co. Ltd.b Shares Value 117,000 $ 1,073,500 5,265 579,000 585,000 180,500 117,000 175,500 175,500 29,000 585,000 292,500 58,500 175,500 117,000 292,500 351,000 585,000 117,000 81,900 117,000 175,500 643,500 175,500 585,000 234,000 58,500 1,170,000 760,500 585,000 585,000 234,000 58,500 117,000 117,000 585,000 175,580 117,000 585,000 468,000 175,500 5,148,753 1,979,719 7,197,409 2,158,150 1,866,566 2,057,121 1,687,330 2,063,497 1,697,034 4,550,129 3,847,295 6,692,809 1,509,806 4,053,359 1,701,029 5,097,380 2,383,724 2,814,119 3,641,801 2,208,028 1,253,510 3,912,938 5,004,337 3,438,591 2,089,184 2,048,085 894,467 6,701,371 7,984,564 1,090,257 3,150,900 6,564,375 1,357,969 1,130,214 9,327,121 7,021,027 7,366,873 1,916,798 1,940,772 4,799,415 1,726,145 2,925 843,180 117,000 3,613,260 3,694,080 3,727,424 105 Schedule of Investments (Continued) iSHARES® MSCI EAFE SMALL-CAP ETF July 31, 2016 Security Seria Co. Ltd. Sharp Corp./Japana,b Shibuya Corp. Shiga Bank Ltd. (The) Shima Seiki Manufacturing Ltd. Shimachu Co. Ltd. Shinko Electric Industries Co. Ltd. Shinko Plantech Co. Ltd. Shinmaywa Industries Ltd. Ship Healthcare Holdings Inc. SHO-BOND Holdings Co. Ltd. Showa Corp. Showa Denko KK Sinanen Holdings Co. Ltd. SKY Perfect JSAT Holdings Inc. Skylark Co. Ltd. SMS Co. Ltd. Sodick Co. Ltd. Sojitz Corp. Sosei Group Corp.a,b Sotetsu Holdings Inc. SPARX Group Co. Ltd. Square Enix Holdings Co. Ltd. Star Micronics Co. Ltd. Sugi Holdings Co. Ltd. Sumco Corp. Sumitomo Bakelite Co. Ltd. Sumitomo Forestry Co. Ltd. Sumitomo Mitsui Construction Co. Ltd. Sumitomo Osaka Cement Co. Ltd. Sumitomo Warehouse Co. Ltd. (The) Tadano Ltd. Taikisha Ltd. Taiyo Yuden Co. Ltd. Takara Bio Inc. Takara Holdings Inc. Takara Leben Co. Ltd. Takasago Thermal Engineering Co. Ltd. Takata Corp.a,b Takeuchi Manufacturing Co. Ltd. 106 Shares Value 58,500 $ 4,680,000 58,500 1,170,000 117,000 234,000 4,760,599 4,201,200 1,064,570 5,628,238 2,331,209 5,299,449 231,600 292,500 228,000 117,000 58,500 234,000 292,500 585,000 785,600 317,200 117,000 175,500 3,474,000 58,500 1,755,000 511,200 292,500 234,000 117,000 585,000 1,170,000 468,000 1,288,110 2,134,849 1,535,054 3,561,887 2,968,239 1,369,957 3,016,759 2,357,467 3,487,808 4,227,889 2,769,596 1,385,369 8,440,513 9,332,829 9,606,821 922,789 9,175,855 2,783,295 5,890,813 4,435,234 5,673,903 6,644,289 2,316,000 2,124,252 1,170,000 5,616,822 585,000 468,000 58,500 351,000 175,500 585,000 351,000 3,099,527 4,589,355 1,590,291 3,188,574 2,575,518 5,217,251 2,774,162 175,500 289,500 2,327,214 1,180,768 117,000 1,598,283 Security TechnoPro Holdings Inc. Teikoku Sen-I Co. Ltd. Tekken Corp.b Temp Holdings Co. Ltd. TIS Inc. Toagosei Co. Ltd. TOC Co. Ltd. Toda Corp. Toho Bank Ltd. (The) Toho Holdings Co. Ltd. Toho Titanium Co. Ltd.b Toho Zinc Co. Ltd. Tokai Carbon Co. Ltd. Tokai Rika Co. Ltd. Tokai Tokyo Financial Holdings Inc. Tokuyama Corp.a,b Tokyo Broadcasting System Holdings Inc. Tokyo Dome Corp. Tokyo Ohka Kogyo Co. Ltd. Tokyo Seimitsu Co. Ltd. Tokyo Steel Manufacturing Co. Ltd. Tokyo TY Financial Group Inc. Tokyotokeiba Co. Ltd. Tokyu Construction Co. Ltd. TOKYU REIT Inc. TOMONY Holdings Inc. Tomy Co. Ltd.b Top REIT Inc. Topcon Corp. Topre Corp. Toridoll.corp. Toshiba Machine Co. Ltd. Toshiba Plant Systems & Services Corp.b Tosoh Corp. Totetsu Kogyo Co. Ltd. Toyo Construction Co. Ltd. Toyo Corp./Chuo-ku Toyo Ink SC Holdings Co. Ltd. Toyo Kanetsu KK Toyo Tire & Rubber Co. Ltd. Toyobo Co. Ltd. 2016 Shares Value 117,000 $ 58,500 585,000 409,500 292,500 818,000 468,000 1,170,000 585,000 175,500 175,500 1,170,000 1,170,000 175,500 3,995,707 796,858 2,180,514 6,712,787 7,631,800 8,268,995 4,018,539 5,913,646 2,209,055 3,955,750 1,118,227 3,961,458 3,036,737 3,392,355 694,800 1,170,000 3,274,512 3,641,801 117,000 292,500 117,000 175,500 1,675,914 2,625,750 3,521,930 4,180,080 351,000 76,044 585,000 292,540 4,095 868,500 292,500 585 292,500 175,500 58,500 585,000 2,489,896 2,012,307 1,330,000 3,079,969 5,841,723 3,288,071 2,640,020 2,497,317 2,836,952 4,046,509 1,715,300 1,975,021 117,000 1,755,000 117,000 440,600 117,000 585,000 585,000 292,500 2,925,000 2,072,059 9,041,713 3,710,299 2,278,558 1,235,244 2,557,252 1,204,420 2,988,218 5,565,449 iSHARES ANNUAL REPORT TO SHAREHOLDERS Schedule of Investments (Continued) iSHARES® MSCI EAFE SMALL-CAP ETF July 31, 2016 Security Shares Toyota Boshoku Corp. TPR Co. Ltd. TS Tech Co. Ltd. TSI Holdings Co. Ltd. Tsubakimoto Chain Co. Tsukuba Bank Ltd. Tsukui Corp. Tsumura & Co. UACJ Corp. Ube Industries Ltd. ULVAC Inc. Unipres Corp. United Arrows Ltd. United Super Markets Holdings Inc. Unitika Ltd.a,b Universal Entertainment Corp.a,b UNY Group Holdings Co. Ltd. USEN Corp.a Ushio Inc. Valor Holdings Co. Ltd. VT Holdings Co. Ltd. Wacoal Holdings Corp. Wacom Co. Ltd.b Welcia Holdings Co. Ltd. Xebio Holdings Co. Ltd. Yahagi Construction Co. Ltd. YAMABIKO Corp. Yamato Kogyo Co. Ltd. Yodogawa Steel Works Ltd. Yokogawa Bridge Holdings Corp. Yokohama Reito Co. Ltd.b Yondoshi Holdings Inc. Yoshinoya Holdings Co. Ltd.b Yumeshin Holdings Co. Ltd.b Zenkoku Hosho Co. Ltd. Zenrin Co. Ltd. Zensho Holdings Co. Ltd. Zeon Corp. ZERIA Pharmaceutical Co. Ltd. Value 175,500 $ 175,500 175,500 351,000 585,000 903,000 117,000 175,500 585,944 2,925,000 175,500 117,000 58,500 4,087,608 3,777,655 4,058,496 2,041,235 4,047,080 2,828,346 1,852,866 4,983,217 1,446,493 5,165,878 5,505,513 1,930,497 1,645,660 292,500 4,095,000 58,500 702,000 516,240 351,000 175,500 325,600 585,000 521,100 58,500 175,500 117,000 234,000 117,000 222,200 2,828,390 2,477,338 1,516,085 5,699,019 1,627,024 4,390,711 4,837,659 1,737,847 6,450,212 2,130,467 3,875,835 2,548,119 1,064,000 1,869,991 3,327,853 5,821,408 117,000 234,000 58,500 351,000 234,000 175,500 117,000 351,000 585,000 58,500 1,331,141 2,422,540 1,203,279 4,990,067 1,735,278 6,995,341 2,140,557 5,647,646 4,886,178 928,716 1,916,256,605 NETHERLANDS — 1.87% Aalberts Industries NV Accell Group SCHEDULES OF INVESTMENTS 378,087 39,951 12,554,927 1,038,029 Security Amsterdam Commodities NV Arcadis NVb ASM International NV BE Semiconductor Industries NV BinckBank NV Brunel International NV Corbion NV COSMO Pharmaceuticals NVa,b Delta Lloyd NV Eurocommercial Properties NV Euronext NVc Flow Tradersc Fugro NV CVAa,b IMCD Group NV InterXion Holding NVa Kendrion NV Koninklijke BAM Groep NVb NSI NV PostNL NVa Refresco Group NVc SBM Offshore NVb SNS REAAL NVa,b TKH Group NV TomTom NVa,b VastNed Retail NV Wereldhave NV Wessanen Shares 52,689 $ 226,968 149,382 93,219 278,499 36,957 244,917 15,054 1,354,299 96,114 168,489 103,062 182,385 133,749 187,017 49,215 774,702 313,818 1,280,748 106,536 481,149 291,555 102,483 358,401 89,745 89,390 387,351 Value 1,346,311 3,039,340 5,826,582 2,769,715 1,555,290 757,941 5,893,867 2,431,506 4,838,654 4,256,189 7,197,373 3,654,550 3,224,483 5,672,248 7,084,204 1,323,585 3,040,751 1,389,321 4,921,029 1,663,705 6,429,639 3 3,741,171 3,063,578 3,766,413 4,326,287 4,725,726 111,532,417 NEW ZEALAND — 1.33% a2 Milk Co. Ltd.a Air New Zealand Ltd. Argosy Property Ltd. Chorus Ltd. Fisher & Paykel Healthcare Corp. Ltd. Freightways Ltd. Genesis Energy Ltd. Goodman Property Trust Infratil Ltd. Kiwi Property Group Ltd. New Zealand Refining Co. Ltd. (The) Nuplex Industries Ltd. Orion Health Group Ltd.a,b 1,278,225 1,394,812 1,851,063 1,268,013 1,816,056 2,223,124 1,535,234 4,096,919 2,182,251 1,527,981 709,854 1,987,128 1,547,667 8,278,543 16,525,313 7,427,344 1,136,522 1,906,045 3,761,518 9,313,956 574,368 551,208 162,120 1,014,874 2,110,891 567,067 107 Schedule of Investments (Continued) iSHARES® MSCI EAFE SMALL-CAP ETF July 31, 2016 Security Precinct Properties New Zealand Ltd. Sky Network Television Ltd. SKYCITY Entertainment Group Ltd. Trade Me Group Ltd. Xero Ltd.a,b Z Energy Ltd. Shares Value Security Shares a 2,159,091 $ 1,155,701 1,954,206 4,075,773 1,915,771 1,137,735 208,440 928,137 7,004,986 4,201,136 2,974,970 5,736,521 Subsea 7 SA Tanker Investments Ltd.a TGS Nopec Geophysical Co. ASA Thin Film Electronics ASAa,b Treasure ASAa Wilh Wilhelmsen ASA XXL ASAc 713,328 $ 82,218 318,450 1,769,424 122,169 122,169 368,244 79,382,455 NORWAY — 1.51% Akastor ASAa,b Aker ASA Class A Aker Solutions ASAa Atea ASA Austevoll Seafood ASA Avance Gas Holding Ltd.c Bakkafrost P/F Borregaard ASA BW LPG Ltd.c Det Norske Oljeselskap ASAa,b DNO ASAa,b Entra ASAc Europris ASAb,c Fred Olsen Energy ASAa,b Frontline Ltd./Bermudab Hexagon Composites ASAa,b Hoegh LNG Holdings Ltd.b IDEX ASAa,b Kongsberg Automotive ASAa Leroy Seafood Group ASA Nordic Semiconductor ASAa,b Norwegian Air Shuttle ASAa,b Norwegian Property ASA Ocean Yield ASAb Opera Software ASAb Protector Forsikring ASA REC Silicon ASAa,b Salmar ASA Scatec Solar ASAb,c Seadrill Ltd.a,b Selvaag Bolig ASA Sparebank 1 Nord Norge SpareBank 1 SMN Stolt-Nielsen Ltd. Storebrand ASAa 108 735,909 71,217 439,461 203,229 349,716 133,749 126,222 319,029 259,392 317,871 2,226,834 145,908 112,905 152,797 205,545 345,969 148,803 1,010,934 1,543,762 60,795 400,668 90,903 893,193 155,751 400,897 193,965 6,979,266 151,119 173,700 1,045,674 131,523 262,866 673,957 153,446 1,367,019 731,287 2,139,157 1,837,066 2,129,309 3,082,835 431,915 4,919,764 2,575,594 924,189 4,022,967 2,273,655 1,550,388 489,265 299,321 1,610,606 1,047,408 1,554,650 946,974 1,074,030 2,923,940 1,807,618 3,270,086 1,059,374 1,280,528 2,522,592 1,669,551 1,320,798 4,709,629 734,156 3,065,178 601,175 1,263,944 3,768,699 1,931,078 5,188,664 Value 7,643,193 481,229 5,296,851 922,221 237,872 290,088 4,481,237 90,110,081 PORTUGAL — 0.36% Altri SGPS SA Banco BPI SA Registereda,b,d Banco Comercial Portugues SA Registereda,b CTT-Correios de Portugal SA Mota-Engil SGPS SAb Navigator Co. SA (The)b NOS SGPS SA REN – Redes Energeticas Nacionais SGPS SAb Sonae SGPS SA 221,757 1,424,433 859,498 1,776,054 115,403,385 405,300 359,410 1,066,518 760,806 2,606,808 3,397,389 689,678 3,385,889 5,096,973 579,000 2,507,649 1,761,111 1,951,709 21,525,109 SINGAPORE — 1.96% ARA Asset Management Ltd.b Ascendas India Trust Asian Pay Television Trust Boustead Singapore Ltd.b Cambridge Industrial Trust CapitaLand Retail China Trust CDL Hospitality Trusts COSCO Corp. Singapore Ltd.a,b CWT Ltd.b Ezion Holdings Ltd.a,b Far East Hospitality Trustb First REIT First Resources Ltd.b Frasers Centrepoint Trust Frasers Commercial Trust Hyflux Ltd.b Indofood Agri Resources Ltd. Japfa Ltd.b Kenon Holdings Ltd./Singaporea,b Keppel DC REITb Keppel REIT 2016 1,916,715 4,053,000 5,211,000 1,968,600 5,905,800 1,795,680 3,474,000 3,821,500 457,300 5,419,544 2,547,600 3,010,800 1,505,400 1,737,000 2,895,000 2,335,000 1,852,800 1,215,900 1,883,749 3,062,910 2,192,104 1,172,571 2,418,428 2,038,874 3,802,234 825,132 715,010 1,210,530 1,213,956 2,914,184 1,810,156 2,767,612 2,888,318 1,008,339 634,568 742,341 82,798 521,100 4,053,000 979,960 469,460 3,213,793 iSHARES ANNUAL REPORT TO SHAREHOLDERS Schedule of Investments (Continued) iSHARES® MSCI EAFE SMALL-CAP ETF July 31, 2016 Security Shares Lippo Malls Indonesia Retail Trust M1 Ltd./Singaporeb Mapletree Commercial Trustb Mapletree Greater China Commercial Trust Mapletree Industrial Trust Mapletree Logistics Trust Midas Holdings Ltd.b OUE Hospitality Trustb OUE Ltd.b Pacc Offshore Services Holdings Ltd. Parkway Life REIT Perennial Real Estate Holdings Ltd.b Raffles Medical Group Ltd. Religare Health Trustb Rowsley Ltd.a,b SATS Ltd. Sheng Siong Group Ltd.b SIIC Environment Holdings Ltd.a,b Silverlake Axis Ltd. Singapore Post Ltd.b SMRT Corp. Ltd.b Soilbuild Business Space REITb Starhill Global REIT Super Group Ltd./Singapore Tat Hong Holdings Ltd.b United Engineers Ltd. Venture Corp. Ltd. Wing Tai Holdings Ltd. Yanlord Land Group Ltd.b Ying Li International Real Estate Ltd.a,b Yoma Strategic Holdings Ltd.a,b Value 6,484,800 $ 1,158,000 3,010,800 1,810,588 2,258,923 3,553,062 6,426,900 5,211,960 5,790,000 5,326,900 1,447,533 694,800 5,144,008 7,023,787 4,548,023 971,700 786,761 775,966 2,361,000 521,100 624,045 989,357 2,640,309 2,200,200 1,215,900 4,552,400 1,910,700 1,158,000 1,710,274 2,580,087 914,347 433,852 6,216,781 849,252 2,779,260 2,721,340 5,211,000 4,400,400 5,616,400 4,168,800 1,505,400 2,084,400 1,273,800 1,053,000 3,134,100 2,316,000 1,200,187 1,124,521 5,567,556 5,340,371 2,801,718 2,483,091 902,276 853,563 2,181,327 6,977,664 4,060,259 2,034,755 6,195,300 3,533,100 627,325 1,525,723 116,835,378 SPAIN — 2.39% Abengoa SA Class Ba,b Acciona SA Acerinox SA Almirall SA Applus Services SA SCHEDULES OF INVESTMENTS 2,255,465 60,216 449,751 214,849 292,974 559,923 4,448,927 6,012,579 3,452,464 3,115,650 Security Atresmedia Corp. de Medios de Comunicacion SAb Axiare Patrimonio SOCIMI SA Bolsas y Mercados Espanoles SHMSF SAb Cellnex Telecom SAUc Cia. de Distribucion Integral Logista Holdings SA CIE Automotive SA Construcciones y Auxiliar de Ferrocarriles SAb Corp Financiera Alba SA Deoleo SAa,b Duro Felguera SAb Ebro Foods SA Ence Energia y Celulosa SA Euskaltel SAa,c Faes Farma SA Gamesa Corp. Tecnologica SA Grupo Catalana Occidente SA Hispania Activos Inmobiliarios SOCIMI SA Indra Sistemas SAa,b Inmobiliaria Colonial SA Laboratorios Farmaceuticos Rovi SA Lar Espana Real Estate SOCIMI SAb Lar Espana Real Estate SOCIMI SA Newa Let’s GOWEX SAa,b Liberbank SAa,b Mediaset Espana Comunicacion SA Melia Hotels International SA Merlin Properties SOCIMI SA Miquel y Costas & Miquel SA NH Hotel Group SAa,b Obrascon Huarte Lain SAb Papeles y Cartones de Europa SA Pharma Mar SAa,b Promotora de Informaciones SAa,b Prosegur Cia. de Seguridad SA Shares Value 252,444 $ 210,756 2,645,110 2,875,272 88,326 447,124 2,653,472 7,914,947 83,955 70,059 2,026,459 1,360,827 9,264 29,460 2,311,199 522,738 301,380 273,867 320,138 1,215,336 711,012 150,540 3,376,670 1,253,836 516,900 765,763 6,875,174 692,129 2,873,264 4,797,447 15,062,971 4,232,104 391,039 318,450 640,489 5,234,236 3,861,979 5,066,591 26,634 384,505 167,910 1,214,842 83,025 51,450 1,327,069 600,693 1 1,013,569 541,989 215,388 825,346 19,107 710,433 313,819 6,230,497 2,557,909 9,450,942 843,973 3,233,379 1,168,942 462,621 857,500 2,690,096 2,205,470 184,756 767,175 1,094,999 5,215,995 109 Schedule of Investments (Continued) iSHARES® MSCI EAFE SMALL-CAP ETF July 31, 2016 Security Saeta Yield SA Talgo SAa,b,c Tecnicas Reunidas SAb Tubacex SA Viscofan SA Shares 109,431 $ 249,549 91,482 777,598 108,273 Value 1,122,634 1,212,508 2,829,101 2,047,789 5,793,503 142,586,041 SWEDEN — 5.42% AAK AB AF AB Class B Alimak Group ABb,c Arcam ABa,b Avanza Bank Holding AB Axfood AB B&B Tools AB Class B B&M European Value Retail SA Betsson ABb Bilia AB Class A BillerudKorsnas AB BioGaia AB Class B Bonava AB Class Ba Bure Equity AB Byggmax Group AB Castellum AB Clas Ohlson AB Class B Cloetta AB Class B Collector ABa Com Hem Holding AB Concentric AB Duni AB Dustin Group ABc Elekta AB Class Bb Eltel ABc Evolution Gaming Group ABc Fabege AB Fastighets AB Balder Class Ba,b Fingerprint Cards AB Class Ba,b Granges AB Gunnebo AB Haldex ABb Hemfosa Fastigheter AB Hexpol ABb Hoist Finance ABc Holmen AB Class B Hufvudstaden AB Class A 110 72,375 184,122 72,375 64,269 67,743 226,968 102,483 1,936,176 314,122 115,221 497,940 45,856 296,296 218,283 193,965 643,977 102,483 594,633 78,165 364,770 159,855 108,852 120,432 1,105,890 132,591 92,101 618,951 246,075 926,400 236,672 185,280 134,907 349,645 841,866 217,125 152,277 226,389 5,364,472 3,355,166 748,482 1,253,989 2,429,203 4,090,712 1,981,589 6,614,312 2,957,755 2,963,767 8,682,761 1,319,245 3,461,775 2,244,631 1,409,266 9,765,231 1,714,375 2,174,110 1,076,287 3,124,744 1,957,584 1,517,963 786,801 8,825,452 1,402,294 2,655,078 11,083,005 6,744,901 10,829,025 2,412,926 879,349 1,663,928 3,759,337 7,512,609 2,041,892 5,171,429 3,791,102 Security Industrial & Financial Systems Class B Indutrade AB Intrum Justitia AB Investment AB Oresund Inwido AB ITAB Shop Concept AB Class B JM AB KappAhl AB Kungsleden AB L E Lundbergforetagen AB Class B Lifco AB Class B Lindab International AB Loomis AB Class B Meda AB Class A Mekonomen AB Modern Times Group MTG AB Class B Mycronic AB NCC AB Class B NetEnt AB New Wave Group AB Class B Nibe Industrier AB Class B Nobia AB Nolato AB Class Bb Nordax Group ABc Nordnet AB Class Bb Orexo ABa,b Oriflame Holding AGa,b Pandox AB Peab AB Ratos AB Class B RaySearch Laboratories AB Recipharm AB Class Bb Rezidor Hotel Group AB Saab AB SAS ABa SkiStar AB SSAB AB Class Aa,b SSAB AB Class Ba,b Sweco AB Class B Swedish Orphan Biovitrum ABa,b Tethys Oil AB 2016 Shares 48,057 $ 218,862 290,658 121,011 144,750 90,324 237,969 251,286 609,108 Value 2,047,100 4,637,102 9,353,211 1,886,055 1,823,496 756,810 6,188,075 1,236,789 4,550,429 83,955 122,748 278,499 228,126 724,329 72,375 5,066,776 3,732,757 2,609,276 6,600,453 13,547,110 1,679,313 160,962 215,388 299,922 520,320 150,540 1,292,328 434,829 57,900 211,914 255,339 85,692 151,386 145,908 726,066 587,106 75,849 109,668 342,189 184,701 564,739 84,534 552,945 1,654,677 216,463 4,208,243 2,505,128 7,254,307 4,417,604 825,611 11,131,098 4,094,325 1,563,966 1,025,623 849,793 522,182 3,909,986 2,498,085 5,853,861 2,975,641 1,179,946 1,773,523 1,427,559 6,359,148 1,111,821 1,337,344 1,743,707 4,106,928 3,982,550 469,569 175,437 6,014,472 1,156,436 iSHARES ANNUAL REPORT TO SHAREHOLDERS Schedule of Investments (Continued) iSHARES® MSCI EAFE SMALL-CAP ETF July 31, 2016 Security Shares c Thule Group AB Tobii ABa,b Trelleborg AB Class B Unibet Group PLC Vitrolife AB Wallenstam AB Class B Wihlborgs Fastigheter AB 240,864 $ 170,805 652,533 706,959 48,197 408,195 165,015 Value 3,874,023 1,235,991 11,929,026 7,224,181 2,756,244 3,570,881 3,668,332 323,568,864 SWITZERLAND — 4.42% AFG Arbonia-Forster Holding AG Registereda Allreal Holding AG Registered Ascom Holding AG Registered Autoneum Holding AG Banque Cantonale Vaudoise Registered Basilea Pharmaceutica AG Registereda,b BKW AG Bobst Group SA Registered Bossard Holding AGb Bucher Industries AG Registered Burckhardt Compression Holding AG Cembra Money Bank AG Clariant AG Registered Comet Holding AG Registered Daetwyler Holding AG Bearer dorma+kaba Holding AG Class B EFG International AGb Emmi AG Evolva Holding SAa,b Flughafen Zuerich AG Forbo Holding AG Registered GAM Holding AG Gategroup Holding AG Georg Fischer AG Registered Helvetia Holding AG Registered Huber & Suhner AG Registered Implenia AG Registered Inficon Holding AG Registered Intershop Holdings AG Kardex AG Bearer SCHEDULES OF INVESTMENTS 121,461 35,319 185,881 13,317 1,922,865 5,233,257 3,183,124 3,761,748 7,605 5,162,067 33,003 38,214 30,108 17,370 2,412,605 1,759,556 1,679,157 2,120,813 19,107 4,758,710 11,580 67,164 776,439 2,925 23,839 3,477,774 4,836,892 13,553,237 2,390,967 3,206,653 11,700 192,229 7,605 1,554,036 61,076 4,095 551,209 100,168 12,285 16,212 52,689 42,267 5,211 2,895 22,002 8,577,216 918,928 4,918,128 1,205,988 11,482,756 5,254,074 6,074,164 5,202,994 10,048,417 8,169,325 3,074,820 2,886,463 1,915,472 1,422,862 2,218,526 Security Komax Holding AG Registered Kudelski SA Bearer Kuoni Reisen Holding AG Class B Registereda,b Leonteq AGb Logitech International SA Registeredb Meyer Burger Technology AGa,b Mobilezone Holding AGb Mobimo Holding AG Registered Molecular Partners AGa,b Myriad Group AGa,b OC Oerlikon Corp. AG Registered Orascom Development Holding AGa,b Panalpina Welttransport Holding AG Registered PSP Swiss Property AG Registered Rieter Holding AG Registered Santhera Pharmaceutical Holding AGa,b Schmolz + Bickenbach AG Registereda Schweiter Technologies AG Bearer SFS Group AG Siegfried Holding AG Registered St Galler Kantonalbank AG Registered Straumann Holding AG Registered Sunrise Communications Group AGc Swissquote Group Holding SA Registered Tecan Group AG Registered Temenos Group AG Registered U-Blox AG Valiant Holding AG Registered Valora Holding AG Registered Vontobel Holding AG Registered Shares 16,212 $ 166,752 Value 3,623,356 3,562,966 12,466 28,950 4,762,865 1,885,667 423,828 286,027 202,241 20,265 19,437 379,126 8,485,769 1,198,623 2,605,309 4,894,046 511,844 1,031,715 491,571 4,613,326 101,425 754,561 43,425 5,895,142 105,957 15,054 10,716,847 3,179,183 15,973 928,845 1,873,065 1,259,757 2,925 35,898 2,966,010 2,748,670 6,369 1,343,721 8,106 3,340,281 28,950 11,090,835 101,325 6,568,380 52,689 41,688 187,596 22,581 55,584 16,212 1,308,434 6,720,462 11,636,795 5,733,745 5,314,255 4,696,942 78,165 3,611,224 111 Schedule of Investments (Continued) iSHARES® MSCI EAFE SMALL-CAP ETF July 31, 2016 Security Ypsomed Holding AG Zehnder Group AGa Shares 11,001 $ 43,425 Value 2,190,069 1,684,968 263,694,170 UNITED KINGDOM — 17.10% 888 Holdings PLC AA PLC Abcam PLC Acacia Mining PLC Advanced Medical Solutions Group PLCb African Minerals Ltd.a,b Aldermore Group PLCa Allied Minds PLCa,b Amec Foster Wheeler PLC Amerisur Resources PLCa,b AO World PLCa,b Arrow Global Group PLC Ashmore Group PLCb ASOS PLCa AVEVA Group PLC Balfour Beatty PLCa BBA Aviation PLC Beazley PLC Bellway PLC Berendsen PLC BGEO Group PLC Big Yellow Group PLC Bodycote PLC boohoo.com PLCa,b Booker Group PLC Bovis Homes Group PLC Brammer PLC Brewin Dolphin Holdings PLC Britvic PLC BTG PLCa Cairn Energy PLCa Cape PLC Capital & Counties Properties PLC Card Factory PLC Carillion PLCb Centamin PLC Chemring Group PLC Chesnara PLC Cineworld Group PLC 112 661,797 1,712,103 529,206 607,371 1,979,200 5,635,163 5,375,096 4,511,845 1,081,572 490,220 621,267 607,371 1,143,525 2,954,637 694,221 532,680 1,108,206 154,593 212,493 1,976,706 3,082,017 1,474,044 398,931 682,062 120,432 437,724 645,006 2,384,901 4,764,591 453,936 428,460 826,233 633,426 1,144,201 1,794,494 418,038 3,101,768 7 1,147,375 2,986,124 6,769,915 1,059,176 1,354,925 1,559,463 4,899,647 9,246,656 5,337,843 5,818,457 9,738,948 7,755,943 11,101,691 11,564,179 4,366,804 4,126,281 5,014,074 2,113,595 11,007,151 4,933,026 625,753 2,772,093 5,256,249 10,132,771 4,267,148 1,032,354 2,441,643 936,822 1,232,691 3,659,290 1,193,362 530,364 605,055 9,433,551 3,807,330 4,364,930 8,060,153 2,174,626 2,202,274 4,719,574 Security Shares a Clinigen Healthcare Ltd. Close Brothers Group PLC Costain Group PLC Countrywide PLC Crest Nicholson Holdings PLC CVS Group PLC CYBG PLCa,b Daily Mail & General Trust PLC Class A NVS Dairy Crest Group PLC Dart Group PLC De La Rue PLC Debenhams PLC Derwent London PLC Dialight PLCa,b Dignity PLC Diploma PLC Domino’s Pizza Group PLC Drax Group PLC DS Smith PLC Dunelm Group PLC Electrocomponents PLC Elementis PLC Enterprise Inns PLCa Entertainment One Ltd. Essentra PLC esure Group PLC Evraz PLCa Faroe Petroleum PLCa,b Faroe Petroleum PLC Newa,b Fenner PLC Fevertree Drinks PLC FirstGroup PLCa Foxtons Group PLC Galliford Try PLC GAME Digital PLC Gem Diamonds Ltd. Genus PLC Go-Ahead Group PLC Grafton Group PLC Grainger PLC Great Portland Estates PLC Greencore Group PLC Greene King PLC Greggs PLC 2016 207,282 $ 456,252 247,233 644,427 733,014 165,594 2,405,749 837,234 628,216 459,876 421,206 3,986,416 299,343 125,643 141,855 342,768 1,476,450 1,205,533 2,553,969 273,867 1,598,619 1,362,966 1,830,392 1,082,730 749,226 936,243 1,117,470 917,715 15,294 687,852 276,762 3,621,066 851,130 204,387 577,149 422,356 185,280 156,960 708,696 1,065,360 958,824 1,413,918 865,231 375,349 iSHARES ANNUAL REPORT TO Value 1,828,760 7,632,651 1,115,234 2,121,903 4,158,582 1,752,278 8,330,249 7,981,258 5,029,518 2,961,301 3,523,183 2,966,595 11,295,182 955,857 5,083,322 3,884,220 7,780,364 5,470,805 13,299,131 3,090,713 6,223,132 4,006,477 2,144,662 2,836,268 4,824,526 3,238,146 2,540,035 816,362 — 1,470,351 3,343,859 4,822,114 1,243,050 2,664,801 574,711 736,000 4,479,593 3,809,476 5,255,127 3,075,077 8,701,167 6,149,902 9,333,736 5,152,949 SHAREHOLDERS Schedule of Investments (Continued) iSHARES® MSCI EAFE SMALL-CAP ETF July 31, 2016 Security Shares GVC Holdings PLC GW Pharmaceuticals PLCa,b Halfords Group PLC Halma PLC Hansteen Holdings PLC Hays PLC Helical PLC Henderson Group PLC Hiscox Ltd. Hochschild Mining PLCa Home Retail Group PLC Homeserve PLC Howden Joinery Group PLC Hunting PLCb IG Group Holdings PLC Imagination Technologies Group PLCa Inchcape PLC Indivior PLC Informa PLC Intermediate Capital Group PLC International Personal Finance PLC Interserve PLC iomart Group PLCb ITE Group PLC J D Wetherspoon PLC Jimmy Choo PLCa John Laing Group PLCc John Menzies PLC John Wood Group PLC JRP Group PLC Jupiter Fund Management PLC Just Eat PLCa Kainos Group PLC Kcom Group PLC Keller Group PLC Kier Group PLC Ladbrokes PLC Laird PLC Lancashire Holdings Ltd.b LondonMetric Property PLC Lonmin PLCa Lookers PLC Majestic Wine PLCa,b SCHEDULES OF INVESTMENTS Value 833,373 $ 767,824 695,528 1,272,323 1,651,887 4,187,328 315,555 3,226,558 956,660 1,063,044 2,410,377 925,277 1,906,647 427,881 1,235,586 6,981,823 6,070,766 3,255,171 17,720,376 2,346,736 6,610,266 1,189,853 9,895,814 13,463,673 3,771,271 4,941,199 6,879,547 10,935,889 2,317,839 14,518,318 793,809 1,124,418 2,058,924 1,938,492 1,009,806 2,144,769 10,062,080 8,094,291 18,376,479 7,682,324 755,595 530,944 300,501 983,477 412,249 476,517 808,284 217,704 1,027,146 1,563,300 1,013,829 1,367,098 260,550 1,611,503 233,337 242,022 2,652,399 862,919 541,365 1,868,433 491,400 958,245 259,971 2,689,589 2,079,557 1,186,951 2,138,187 4,663,364 665,887 2,414,608 1,705,369 8,993,879 2,198,054 5,685,762 9,747,068 588,085 2,353,552 3,156,878 3,454,326 4,884,447 3,360,332 4,330,592 4,013,804 1,554,419 1,354,959 1,334,920 Security Man Group PLC Marston’s PLC Micro Focus International PLC Mitchells & Butlers PLC Mitie Group PLC Moneysupermarket.com Group PLC Morgan Advanced Materials PLC N Brown Group PLC National Express Group PLC NewRiver Retail Ltd. Northgate PLC Ocado Group PLCa,b OneSavings Bank PLC Ophir Energy PLCa Oxford Instruments PLC P2P Global Investments PLC/Fund Pagegroup PLC Pantheon Resources PLCa Paragon Group of Companies PLC (The) Paysafe Group PLCa Pennon Group PLC Petra Diamonds Ltd. Pets at Home Group PLC Phoenix Group Holdings Playtech PLC Poundland Group PLC Premier Farnell PLC Premier Foods PLCa,b Primary Health Properties PLC PZ Cussons PLC QinetiQ Group PLC Redcentric PLC Redde PLC Redefine International PLC/Isle of Man Redrow PLC Regus PLC Renishaw PLC Rentokil Initial PLC Restaurant Group PLC (The) Rightmove PLC Shares 4,909,920 $ 2,106,402 590,001 749,226 845,919 Value 7,561,927 3,974,069 15,165,550 2,504,775 2,793,217 1,496,136 5,929,465 1,083,941 464,937 1,418,550 696,607 347,979 1,560,405 383,298 2,152,722 173,700 3,943,268 1,073,480 6,354,623 2,774,656 1,764,885 5,523,286 1,041,728 1,936,410 1,652,403 277,341 1,005,283 316,591 3,037,862 4,514,005 735,591 906,136 1,353,123 980,826 1,815,789 1,035,252 457,171 613,799 726,066 1,471,240 2,447,433 2,136,668 720,855 1,860,945 427,881 932,190 3,280,791 6,934,652 11,746,232 2,886,961 3,346,918 4,871,063 7,085,913 2,185,866 3,789,530 1,640,976 3,156,001 3,251,199 5,551,837 1,015,475 2,308,253 2,662,242 820,443 2,235,696 100,167 5,758,155 730,119 308,607 1,536,870 3,682,932 9,062,325 3,459,116 16,436,974 3,433,541 16,598,471 113 Schedule of Investments (Continued) iSHARES® MSCI EAFE SMALL-CAP ETF July 31, 2016 Security Rotork PLC RPC Group PLC RPS Group PLC SafeCharge International Group Ltd. Safestore Holdings PLC Saga PLC Savills PLC Scapa Group PLC Schroder REIT Ltd. Senior PLC Serco Group PLCa Shaftesbury PLC Shanks Group PLC Shawbrook Group PLCa,c SIG PLC Sirius Minerals PLCa,b Sophos Group PLCc Spectris PLC Speedy Hire PLC Spirax-Sarco Engineering PLC Spire Healthcare Group PLCc Spirent Communications PLC SSP Group PLC ST Modwen Properties PLC Stagecoach Group PLC Stobart Group Ltd. Stock Spirits Group PLC SuperGroup PLC SVG Capital PLCa Synthomer PLC TalkTalk Telecom Group PLCb Ted Baker PLC Telecom Plus PLCb Telford Homes PLCb Telit Communications PLCb Thomas Cook Group PLCa Topps Tiles PLC Tritax Big Box REIT PLC Tullett Prebon PLC Tullow Oil PLCa UBM PLC UDG Healthcare PLCb Ultra Electronics Holdings PLC UNITE Group PLC (The) 114 Shares Value 2,414,430 $ 902,558 608,529 6,975,472 10,341,558 1,518,935 235,074 601,581 2,314,507 382,140 460,305 1,475,292 1,126,734 3,243,186 854,025 1,064,106 456,252 2,134,773 6,928,893 781,650 345,663 2,377,374 192,228 821,022 2,282,418 1,236,744 587,106 1,208,373 1,145,262 742,857 149,382 474,677 735,909 1,847,590 90,903 205,545 204,966 345,663 4,383,609 716,223 1,974,530 887,028 2,696,324 1,066,389 983,727 236,232 796,754 733,453 2,961,651 6,253,498 3,546,498 1,564,537 1,077,310 3,065,233 5,149,951 10,590,526 1,490,519 1,138,840 2,990,227 2,460,865 2,584,114 8,623,424 1,088,972 10,165,460 3,519,840 2,742,482 5,247,913 2,199,751 3,256,845 2,600,166 1,528,752 3,145,586 3,469,410 3,575,087 5,617,475 2,838,675 2,838,183 787,826 1,220,772 3,783,077 1,141,115 3,575,841 3,912,344 7,077,483 9,507,399 7,594,941 5,366,471 6,701,483 Security Shares a Vectura Group PLC Vedanta Resources PLC Vesuvius PLC Victrex PLC Virgin Money Holdings UK PLC VTTI Energy Partners LP WH Smith PLC Workspace Group PLC WS Atkins PLC Xaar PLC Zeal Network SE Zoopla Property Group PLCc 2,325,836 $ 241,443 868,500 242,022 712,749 66,589 408,774 345,084 285,099 300,501 30,687 702,906 Value 4,598,052 1,838,434 4,243,437 4,749,297 2,495,438 1,321,126 8,298,332 3,230,085 5,303,150 1,981,910 1,213,233 2,743,751 1,019,998,159 TOTAL COMMON STOCKS (Cost: $5,515,207,181) 5,925,861,666 PREFERRED STOCKS — 0.31% GERMANY — 0.29% Biotest AG Draegerwerk AG & Co. KGaA Jungheinrich AG Sartorius AG Sixt SE 80,481 20,844 145,908 108,852 32,424 1,227,122 1,380,115 4,450,235 8,700,817 1,333,756 17,092,045 ITALY — 0.02% Italmobiliare SpA 43,276 1,477,935 1,477,935 TOTAL PREFERRED STOCKS (Cost: $14,319,989) 18,569,980 WARRANTS — 0.00% SINGAPORE — 0.00% Ezion Holdings Ltd. (Expires 04/20/24)a 2 — — TOTAL WARRANTS (Cost: $0) — SHORT-TERM INVESTMENTS — 6.82% MONEY MARKET FUNDS — 6.82% BlackRock Cash Funds: Institutional, SL Agency Shares 0.57%e,f,g 385,588,075 2016 iSHARES ANNUAL REPORT TO 385,588,075 SHAREHOLDERS Schedule of Investments (Continued) iSHARES® MSCI EAFE SMALL-CAP ETF July 31, 2016 Security Shares Value BlackRock Cash Funds: Prime, SL Agency Shares 0.47%e,f,g 21,305,448 $ BlackRock Cash Funds: Treasury, SL Agency Shares 0.28%e,f 150,479 NVS — Non-Voting Shares 21,305,448 of the Securities Act of 1933. d This security may be resold to qualified foreign investors and foreign 150,479 407,044,002 TOTAL SHORT-TERM INVESTMENTS (Cost: $407,044,002) TOTAL INVESTMENTS IN SECURITIES — 106.44% (Cost: $5,936,571,172)h Other Assets, Less Liabilities — (6.44)% NET ASSETS — 100.00% a Non-income earning security. b All or a portion of this security represents a security on loan. See Note 1. c This security may be resold to qualified institutional buyers under Rule 144A institutional buyers under Regulation S of the Securities Act of 1933. e Affiliated money market fund. f The rate quoted is the annualized seven-day yield of the fund at period end. g All or a portion of this security represents an investment of securities lending collateral. See Note 1. 407,044,002 h The cost of investments for federal income tax purposes was $6,055,369,565. Net unrealized appreciation was $296,106,083, of which $915,862,479 represented gross unrealized appreciation on securities and $619,756,396 represented gross unrealized depreciation on securities. 6,351,475,648 (384,345,015) $5,967,130,633 Schedule 1 — 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 July 31, 2016. The breakdown of the Fund’s investments into major categories is disclosed in the schedule of investments above. Level 1 Investments: Assets: Common stocks Preferred stocks Warrants Money market funds Total a Level 2 Level 3 Total $5,917,542,415 18,569,980 0a 407,044,002 $8,319,093 — — — $ 158 — — — $5,925,861,666 18,569,980 0a 407,044,002 $6,343,156,397 $8,319,093 $ 158 $6,351,475,648 Rounds to less than $1. See notes to financial statements. SCHEDULES OF INVESTMENTS 115 Statements of Assets and Liabilities iSHARES® TRUST July 31, 2016 iShares Adaptive Currency Hedged MSCI EAFE ETF iShares Currency Hedged MSCI ACWI ETF iShares Currency Hedged MSCI ACWI ex U.S. ETF Investments, at cost: Affiliated (Note 2) $2,374,513 $1,213,160 $2,386,500 Total cost of investments $2,374,513 $1,213,160 $2,386,500 2,386,903 1,193,879 2,209,592 Total fair value of investments Receivables: Dividends and interest Unrealized appreciation on forward currency contracts (Note 1) 2,386,903 1,193,879 2,209,592 — 5,338 — 7,111 1 27,854 Total Assets 2,392,241 1,200,990 2,237,447 6,620 8,633 149 2,042 10,468 35 8,239 40,929 73 15,402 12,545 49,241 $2,376,839 $1,188,445 $2,188,206 $2,428,378 (60,634) 9,095 $1,238,055 (26,972) (22,638) $2,433,933 (55,744) (189,983) $2,376,839 $1,188,445 $2,188,206 100,000 50,000 100,000 ASSETS Investments in securities, at fair value (Note 1): Affiliated (Note 2) LIABILITIES Payables: Investment securities purchased Unrealized depreciation on forward currency contracts (Note 1) Investment advisory fees (Note 2) Total Liabilities NET ASSETS Net assets consist of: Paid-in capital Accumulated net realized loss Net unrealized appreciation (depreciation) NET ASSETS Shares outstanding a Net asset value per share $ 23.77 $ 23.77 $ 21.88 a No par value, unlimited number of shares authorized. See notes to financial statements. 116 2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS Statements of Assets and Liabilities (Continued) iSHARES® TRUST July 31, 2016 iShares Currency Hedged MSCI EAFE ETF iShares Currency Hedged MSCI EAFE Small-Cap ETF iShares MSCI ACWI ETF ASSETS Investments, at cost: Unaffiliated Affiliated (Note 2) $ Total cost of investments — 3,864,005,891 $ — 8,208,237 $5,474,770,433 123,638,110 $3,864,005,891 $8,208,237 $5,598,408,543 $ $ — 8,453,603 $5,496,856,768 124,257,436 a Investments in securities, at fair value (including securities on loan ) (Note 1): Unaffiliated Affiliated (Note 2) — 3,590,691,620 Total fair value of investments Foreign currency, at valueb Receivables: Investment securities sold Dividends and interest Unrealized appreciation on forward currency contracts (Note 1) Capital shares redeemed Tax reclaims 3,590,691,620 — 8,453,603 — 5,621,114,204 5,815,328 — 15,901 55,945,377 106,433 — — 6 134,870 — — 5,456,674 7,660,771 — — 2,809,726 Total Assets 3,646,759,331 8,588,479 5,642,856,703 29,388,325 8,555,000 — — — — 66,483,044 79,430 77,404 — — — — — 162,582 341 1,929 106,618,353 7,185,201 655 4,459 197,707 — 1,537,648 104,505,799 240,327 115,545,952 $3,542,253,532 $8,348,152 $5,527,310,751 $3,959,719,693 — (133,614,223) (283,851,938) $8,390,227 $5,731,021,914 — 5,597,403 (259,729) (231,944,020) 217,654 22,635,454 $3,542,253,532 $8,348,152 $5,527,310,751 145,800,000 350,000 94,600,000 LIABILITIES Payables: Investment securities purchased Collateral for securities on loan (Note 1) Capital shares redeemed Due to custodian Foreign taxes (Note 1) Securities related to in-kind transactions (Note 4) Unrealized depreciation on forward currency contracts (Note 1) Investment advisory fees (Note 2) Total Liabilities NET ASSETS Net assets consist of: Paid-in capital Undistributed net investment income Accumulated net realized loss Net unrealized appreciation (depreciation) NET ASSETS Shares outstanding c Net asset value per share $ 24.30 $ 23.85 $ 58.43 a Securities on loan with values of $8,412,900, $ — and $102,606,528, respectively. See Note 1. b Cost of foreign currency: $ —, $ — and $5,794,524, respectively. c No par value, unlimited number of shares authorized. See notes to financial statements. FINANCIAL STATEMENTS 117 Statements of Assets and Liabilities (Continued) iSHARES® TRUST July 31, 2016 iShares MSCI ACWI ex U.S. ETF iShares MSCI EAFE ETF iShares MSCI EAFE Small-Cap ETF $2,143,264,607 35,107,018 $59,970,084,947 331,269,507 $5,529,527,170 407,044,002 $2,178,371,625 $60,301,354,454 $5,936,571,172 $1,903,648,434 35,107,018 $59,493,492,103 331,269,507 $5,944,431,646 407,044,002 Total fair value of investments Foreign currency, at valueb Foreign currency pledged to broker, at valueb Receivables: Investment securities sold Dividends and interest Futures variation margin Tax reclaims Foreign withholding tax claims (Note 9) 1,938,755,452 3,261,777 — 59,824,761,610 136,194,452 3,109,426 6,351,475,648 12,951,360 — 3,224 3,424,554 — 1,993,384 — 1,332,553 63,194,069 21,874,857 92,967,248 44,963,404 4,924,691 8,747,012 — 2,975,755 — Total Assets 1,947,438,391 60,188,397,619 6,381,074,466 Payables: Investment securities purchased Collateral for securities on loan (Note 1) Foreign taxes (Note 1) Professional fees (Note 9) Investment advisory fees (Note 2) 1,271,996 34,547,556 5,935 — 509,221 — 315,166,014 — 3,615,769 15,864,673 5,111,416 406,893,523 — — 1,938,894 Total Liabilities 36,334,708 334,646,456 413,943,833 $1,911,103,683 $59,853,751,163 $5,967,130,633 $2,317,931,388 3,066,556 (170,197,036) (239,697,225) $68,294,058,040 (31,642,133) (7,951,856,553) (456,808,191) $5,653,019,463 (16,896,227) (84,114,763) 415,122,160 $1,911,103,683 $59,853,751,163 $5,967,130,633 47,000,000 1,027,200,000 117,000,000 ASSETS Investments, at cost: Unaffiliated Affiliated (Note 2) Total cost of investments a Investments in securities, at fair value (including securities on loan ) (Note 1): Unaffiliated Affiliated (Note 2) LIABILITIES NET ASSETS Net assets consist of: Paid-in capital Undistributed (distributions in excess of) net investment income Accumulated net realized loss Net unrealized appreciation (depreciation) NET ASSETS Shares outstanding c Net asset value per share $ 40.66 $ 58.27 $ 51.00 a Securities on loan with values of $33,340,987, $307,465,100 and $384,239,656, respectively. See Note 1. b Cost of foreign currency including currency at broker, if any: $3,249,173, $138,426,562 and $12,790,087, respectively. c No par value, unlimited number of shares authorized. See notes to financial statements. 118 2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS Statements of Operations iSHARES® TRUST Period ended July 31, 2016 iShares Currency Hedged MSCI ACWI ETF iShares Currency Hedged MSCI ACWI ex U.S. ETF $ 48,524 40 $ 44,767 146 $ 56,839 155 48,564 44,913 56,994 5,045 8,299 8,364 5,045 (4,647) 8,299 (7,644) 8,364 (7,704) iShares Adaptive Currency Hedged MSCI EAFE ETFa NET INVESTMENT INCOME Dividends — affiliated (Note 2) Securities lending income — affiliated — net (Note 2) Total investment income EXPENSES Investment advisory fees (Note 2) Total expenses Less investment advisory fees waived (Note 2) Net expenses 398 655 660 48,166 44,258 56,334 Net realized gain (loss) from: Investments — affiliated (Note 2) In-kind redemptions — affiliated (Note 2) Foreign currency transactions (4,807) — (55,827) (8,265) (40,249) 12,017 (30,172) — 41,745 Net realized gain (loss) (60,634) (36,497) 11,573 12,390 (3,295) (43,541) (31,687) (170,299) (71,274) 9,095 (75,228) (241,573) (51,539) (111,725) (230,000) $ (3,373) $ (67,467) $(173,666) Net investment income NET REALIZED AND UNREALIZED GAIN (LOSS) Net change in unrealized appreciation/depreciation on: Investments Forward currency contracts Net change in unrealized appreciation/depreciation Net realized and unrealized loss NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS a For the period from January 5, 2016 (commencement of operations) to July 31, 2016. See notes to financial statements. FINANCIAL STATEMENTS 119 Statements of Operations (Continued) iSHARES® TRUST Year ended July 31, 2016 iShares Currency Hedged MSCI EAFE ETF iShares Currency Hedged MSCI EAFE Small-Cap ETF iShares MSCI ACWI ETF NET INVESTMENT INCOME Dividends — unaffiliateda Dividends — affiliated (Note 2) Securities lending income — affiliated — net (Note 2) $ — 103,401,580 208,740 $ — 196,405 — $ 146,326,358 358,733 1,410,570 103,610,320 — 196,405 — 148,095,661 (112,064) 103,610,320 196,405 147,983,597 12,829,759 35,660 18,834,460 12,829,759 (11,814,738) 35,660 (33,171) 18,834,460 — 1,015,021 2,489 18,834,460 102,595,299 193,916 129,149,137 Net realized gain (loss) from: Investments — unaffiliated Investments — affiliated (Note 2) In-kind redemptions — unaffiliated In-kind redemptions — affiliated (Note 2) Foreign currency transactions — (67,798,491) — 29,585,633 (20,314,563) — (29,436) — (100,730) (147,127) (69,473,241) — 215,649,862 882,014 (260,775) Net realized gain (loss) (58,527,421) (277,293) 146,797,860 Net change in unrealized appreciation/depreciation on: Investments Forward currency contracts Translation of assets and liabilities in foreign currencies (279,221,213) (54,585,798) — 211,301 (74,515) — (376,996,664) — 69,172 Net change in unrealized appreciation/depreciation (333,807,011) 136,786 (376,927,492) (392,334,432) (140,507) (230,129,632) Less: Other foreign taxes (Note 1) Total investment income EXPENSES Investment advisory fees (Note 2) Total expenses Less investment advisory fees waived (Note 2) Net expenses Net investment income NET REALIZED AND UNREALIZED GAIN (LOSS) Net realized and unrealized loss NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS a $(289,739,133) $ 53,409 $(100,980,495) Net of foreign withholding tax of $ —, $ — and $7,762,746, respectively. See notes to financial statements. 120 2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS Statements of Operations (Continued) iSHARES® TRUST Year ended July 31, 2016 iShares MSCI ACWI ex U.S. ETF iShares MSCI EAFE ETF iShares MSCI EAFE Small-Cap ETF $ 61,978,330 2,642 — 666,314 — $ 1,872,237,265 60,240 1,122,778 8,400,809 23,746,378 $135,384,280 5,088 — 15,023,524 — 62,647,286 (74,407) 1,905,567,470 — 150,412,892 — 62,572,879 1,905,567,470 150,412,892 6,790,374 — 187,042,595 1,600,984 21,176,121 — 6,790,374 188,643,579 21,176,121 55,782,505 1,716,923,891 129,236,771 Net realized gain (loss) from: Investments — unaffiliated In-kind redemptions — unaffiliated Futures contracts Foreign currency transactions (89,404,781) 33,345,880 — (200,876) (1,307,481,757) 134,395,533 (19,455,446) (1,061,883) (23,551,317) 67,054,231 — 513,437 Net realized gain (loss) (56,259,777) (1,193,603,553) 44,016,351 Net change in unrealized appreciation/depreciation on: Investments Futures contracts Translation of assets and liabilities in foreign currencies (212,703,841) — 23,907 (5,174,680,594) 17,741,991 1,009,709 (94,380,422) — 288,316 Net change in unrealized appreciation/depreciation (212,679,934) (5,155,928,894) (94,092,106) (268,939,711) (6,349,532,447) (50,075,755) $(213,157,206) $(4,632,608,556) NET INVESTMENT INCOME Dividends — unaffiliateda Dividends — affiliated (Note 2) Miscellaneous income Securities lending income — affiliated — net (Note 2) Foreign withholding tax claims (Note 9) Less: Other foreign taxes (Note 1) Total investment income EXPENSES Investment advisory fees (Note 2) Professional fees (Note 9) Total expenses Net investment income NET REALIZED AND UNREALIZED GAIN (LOSS) Net realized and unrealized loss NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 79,161,016 a Net of foreign withholding tax of $5,883,170, $147,505,355 and $10,319,004, respectively. See notes to financial statements. FINANCIAL STATEMENTS 121 Statements of Changes in Net Assets iSHARES® TRUST iShares Adaptive Currency Hedged MSCI EAFE ETF iShares Currency Hedged MSCI ACWI ETF Period from January 5, 2016a to July 31, 2016 Year ended July 31, 2016 Period from June 29, 2015a to July 31, 2015 INCREASE (DECREASE) IN NET ASSETS OPERATIONS: Net investment income (loss) Net realized loss Net change in unrealized appreciation/depreciation $ Net increase (decrease) in net assets resulting from operations 48,166 (60,634) 9,095 $ 44,258 (36,497) (75,228) $ (92) — 52,590 (3,373) (67,467) 52,498 From net investment income From net realized gain Return of capital (48,166) — (146) (44,258) (32,671) (35) — — — Total distributions to shareholders (48,312) (76,964) — 4,853,398 (2,424,874) — (1,161,637) 2,442,015 — Net increase (decrease) in net assets from capital share transactions 2,428,524 (1,161,637) 2,442,015 INCREASE (DECREASE) IN NET ASSETS 2,376,839 (1,306,068) 2,494,513 DISTRIBUTIONS TO SHAREHOLDERS: CAPITAL SHARE TRANSACTIONS: Proceeds from shares sold Cost of shares redeemed NET ASSETS Beginning of period End of period — 2,494,513 — $ 2,376,839 $ 1,188,445 $2,494,513 SHARES ISSUED AND REDEEMED Shares sold Shares redeemed Net increase (decrease) in shares outstanding 200,000 (100,000) — (50,000) 100,000 — 100,000 (50,000) 100,000 a Commencement of operations. See notes to financial statements. 122 2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS Statements of Changes in Net Assets (Continued) iSHARES® TRUST iShares Currency Hedged MSCI ACWI ex U.S. ETF iShares Currency Hedged MSCI EAFE ETF Year ended July 31, 2016 Period from June 29, 2015a to July 31, 2015 $ $ Year ended July 31, 2016 Year ended July 31, 2015 INCREASE (DECREASE) IN NET ASSETS OPERATIONS: Net investment income (loss) Net realized gain (loss) Net change in unrealized appreciation/depreciation Net increase (decrease) in net assets resulting from operations 56,334 11,573 (241,573) (98) — 51,590 $ 102,595,299 (58,527,421) (333,807,011) $ 46,344,132 2,943,948 49,810,905 (173,666) 51,492 (289,739,133) 99,098,985 From net investment income From net realized gain Return of capital (56,334) (67,219) (71) — — — (102,595,299) (28,631,934) — (46,344,132) (249,806) — Total distributions to shareholders (123,624) — (131,227,233) (46,593,938) — — 2,434,004 — 1,746,159,085 (682,100,170) 3,171,798,665 (327,619,942) — 2,434,004 1,064,058,915 2,844,178,723 2,485,496 643,092,549 2,896,683,770 2,485,496 — 2,899,160,983 2,477,213 $2,188,206 $2,485,496 $3,542,253,532 $2,899,160,983 — — 100,000 — 70,050,000 (28,300,000) 115,600,000 (11,650,000) — 100,000 41,750,000 103,950,000 DISTRIBUTIONS TO SHAREHOLDERS: CAPITAL SHARE TRANSACTIONS: Proceeds from shares sold Cost of shares redeemed Net increase in net assets from capital share transactions INCREASE (DECREASE) IN NET ASSETS (297,290) NET ASSETS Beginning of period End of period SHARES ISSUED AND REDEEMED Shares sold Shares redeemed Net increase in shares outstanding a Commencement of operations. See notes to financial statements. FINANCIAL STATEMENTS 123 Statements of Changes in Net Assets (Continued) iSHARES® TRUST iShares Currency Hedged MSCI EAFE Small-Cap ETF Year ended July 31, 2016 iShares MSCI ACWI ETF Period from June 29, 2015a to July 31, 2015 Year ended July 31, 2016 Year ended July 31, 2015 INCREASE (DECREASE) IN NET ASSETS OPERATIONS: Net investment income (loss) Net realized gain (loss) Net change in unrealized appreciation/depreciation $ Net increase (decrease) in net assets resulting from operations 193,916 (277,293) 136,786 $ 53,409 (105) — 80,868 $ 129,149,137 146,797,860 (376,927,492) $ 137,463,704 549,787,307 (549,482,745) 80,763 (100,980,495) 137,768,266 DISTRIBUTIONS TO SHAREHOLDERS: From net investment income From net realized gain Return of capital (193,916) (86,972) (329) — — — (148,572,041) — — (140,575,067) — — Total distributions to shareholders (281,217) — (148,572,041) (140,575,067) 9,562,437 (3,503,887) 2,436,647 — 493,923,001 (1,237,133,922) 2,779,136,134 (2,078,731,618) Net increase (decrease) in net assets from capital share transactions 6,058,550 2,436,647 (743,210,921) 700,404,516 INCREASE (DECREASE) IN NET ASSETS 5,830,742 2,517,410 (992,763,457) 697,597,715 2,517,410 — 6,520,074,208 5,822,476,493 End of period $ 8,348,152 $2,517,410 $ 5,527,310,751 $ 6,520,074,208 Undistributed net investment income included in net assets at end of period $ $ $ $ CAPITAL SHARE TRANSACTIONS: Proceeds from shares sold Cost of shares redeemed NET ASSETS Beginning of period — — 5,597,403 19,248,507 SHARES ISSUED AND REDEEMED Shares sold Shares redeemed Net increase (decrease) in shares outstanding 400,000 (150,000) 100,000 — 8,800,000 (22,800,000) 46,000,000 (35,200,000) 250,000 100,000 (14,000,000) 10,800,000 a Commencement of operations. See notes to financial statements. 124 2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS Statements of Changes in Net Assets (Continued) iSHARES® TRUST iShares MSCI ACWI ex U.S. ETF Year ended July 31, 2016 iShares MSCI EAFE ETF Year ended July 31, 2015 Year ended July 31, 2016 Year ended July 31, 2015 INCREASE (DECREASE) IN NET ASSETS OPERATIONS: Net investment income Net realized gain (loss) Net change in unrealized appreciation/depreciation $ Net decrease in net assets resulting from operations 55,782,505 $ 47,064,890 $ 1,716,923,891 $ 1,595,344,466 (56,259,777) 37,730,770 (1,193,603,553) 552,409,948 (212,679,934) (174,281,169) (5,155,928,894) (2,332,881,975) (213,157,206) (89,485,509) (4,632,608,556) (185,127,561) From net investment income (54,936,333) (49,930,046) (1,704,075,846) (1,551,620,270) Total distributions to shareholders (54,936,333) (49,930,046) (1,704,075,846) (1,551,620,270) 1,164,954,543 (1,009,167,974) 691,973,697 (305,414,491) 5,166,521,634 (435,259,653) 11,095,034,588 (3,001,320,867) 155,786,569 386,559,206 4,731,261,981 8,093,713,721 (112,306,970) 247,143,651 (1,605,422,421) 6,356,965,890 61,459,173,584 55,102,207,694 DISTRIBUTIONS TO SHAREHOLDERS: CAPITAL SHARE TRANSACTIONS: Proceeds from shares sold Cost of shares redeemed Net increase in net assets from capital share transactions INCREASE (DECREASE) IN NET ASSETS NET ASSETS Beginning of year 2,023,410,653 1,776,267,002 End of year $ 1,911,103,683 $2,023,410,653 $59,853,751,163 $61,459,173,584 Undistributed (distributions in excess of) net investment income included in net assets at end of year $ 3,066,556 $ 206,111 $ (31,642,133) $ (45,785,416) SHARES ISSUED AND REDEEMED Shares sold Shares redeemed Net increase in shares outstanding 28,800,000 (27,600,000) 15,400,000 (7,000,000) 87,600,000 (7,200,000) 171,000,000 (48,000,000) 1,200,000 8,400,000 80,400,000 123,000,000 See notes to financial statements. FINANCIAL STATEMENTS 125 Statements of Changes in Net Assets (Continued) iSHARES® TRUST iShares MSCI EAFE Small-Cap ETF Year ended July 31, 2016 Year ended July 31, 2015 INCREASE (DECREASE) IN NET ASSETS OPERATIONS: Net investment income Net realized gain Net change in unrealized appreciation/depreciation $ 129,236,771 44,016,351 (94,092,106) Net increase in net assets resulting from operations $ 91,711,176 74,089,778 (44,746,747) 79,161,016 121,054,207 From net investment income (124,440,947) (106,231,273) Total distributions to shareholders (124,440,947) (106,231,273) 1,058,040,222 (230,578,321) 1,391,146,448 (264,636,213) Net increase in net assets from capital share transactions 827,461,901 1,126,510,235 INCREASE IN NET ASSETS 782,181,970 1,141,333,169 5,184,948,663 4,043,615,494 End of year $5,967,130,633 $5,184,948,663 Distributions in excess of net investment income included in net assets at end of year $ $ DISTRIBUTIONS TO SHAREHOLDERS: CAPITAL SHARE TRANSACTIONS: Proceeds from shares sold Cost of shares redeemed NET ASSETS Beginning of year (16,896,227) (29,084,581) SHARES ISSUED AND REDEEMED Shares sold Shares redeemed Net increase in shares outstanding 21,200,000 (5,000,000) 27,600,000 (5,400,000) 16,200,000 22,200,000 See notes to financial statements. 126 2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS Financial Highlights iSHARES® TRUST (For a share outstanding throughout the period) iShares Adaptive Currency Hedged MSCI EAFE ETF Period from Jan. 5, 2016a to Jul. 31, 2016 Net asset value, beginning of period $24.29 Income from investment operations: Net investment incomeb Net realized and unrealized lossc 0.48 (0.52) Total from investment operations (0.04) Less distributions from: Net investment income Return of capital (0.48) (0.00)d Total distributions (0.48) Net asset value, end of period Total return Ratios/Supplemental data: Net assets, end of period (000s) Ratio of expenses to average net assetsg,h Ratio of expenses to average net assets prior to waived feesg,h Ratio of net investment income to average net assetsh Portfolio turnover ratei,j $23.77 0.01%e,f $2,377 0.03% 0.38% 3.63% 4% a Commencement of operations. b Based on average shares outstanding throughout the period. c The amount reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. d Rounds to less than $0.01. e Not annualized. f The total return disclosed is based on the net asset value (“NAV”) calculated daily for the creation and redemption of shares in the Fund, which may differ from the NAV calculated for financial reporting purposes. Based on the NAV calculated for financial reporting purposes, the total return for the Fund was -0.03% g The Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying fund in which the Fund is invested. The ratio does not include these indirect fees and expenses. h Annualized for periods of less than one year. i Portfolio turnover rate excludes portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. j Portfolio turnover rate excludes the portfolio activity of the underlying fund in which the Fund is invested. See page 134 for the portfolio turnover rates of the underlying fund. See notes to financial statements. FINANCIAL HIGHLIGHTS 127 Financial Highlights (Continued) iSHARES® TRUST (For a share outstanding throughout each period) iShares Currency Hedged MSCI ACWI ETF Year ended Jul. 31, 2016 Net asset value, beginning of period $24.95 Period from Jun. 29, 2015a to Jul. 31, 2015 $24.42 Income from investment operations: Net investment income (loss)b Net realized and unrealized gain (loss)d 0.47 (0.71) (0.00)c 0.53 Total from investment operations (0.24) 0.53 Less distributions from: Net investment income Net realized gain Return of capital (0.61) (0.33) (0.00)c — — — Total distributions (0.94) — Net asset value, end of period $23.77 Total return (0.80)% Ratios/Supplemental data: Net assets, end of period (000s) Ratio of expenses to average net assetsf,g Ratio of expenses to average net assets prior to waived feesf,g Ratio of net investment income (loss) to average net assetsg Portfolio turnover rateh,i a b c d e f g h i $1,188 0.03% 0.38% 2.03% 5% $24.95 2.13%e $2,495 0.04% 0.38% (0.04)% 0% Commencement of operations. Based on average shares outstanding throughout each period. Rounds to less than $0.01. 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. Not annualized. The Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying funds in which the Fund is invested. This ratio does not include these indirect fees and expenses. Annualized for periods of less than one year. Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. Portfolio turnover rates exclude the portfolio activity of the underlying fund in which the Fund is invested. See page 132 for the portfolio turnover rates of the underlying fund. See notes to financial statements. 128 2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS Financial Highlights (Continued) iSHARES® TRUST (For a share outstanding throughout each period) iShares Currency Hedged MSCI ACWI ex U.S. ETF Year ended Jul. 31, 2016 Net asset value, beginning of period $24.85 Period from Jun. 29, 2015a to Jul. 31, 2015 $24.34 Income from investment operations: Net investment income (loss)b Net realized and unrealized gain (loss)d 0.56 (2.30) (0.00)c 0.51 Total from investment operations (1.74) 0.51 Less distributions from: Net investment income Net realized gain Return of capital (0.56) (0.67) (0.00)c — — — Total distributions (1.23) — Net asset value, end of period Total return Ratios/Supplemental data: Net assets, end of period (000s) Ratio of expenses to average net assetsf,g Ratio of expenses to average net assets prior to waived feesf,g Ratio of net investment income (loss) to average net assetsg Portfolio turnover rateh,i a b c d e f g h i $21.88 (6.97)% $2,188 0.03% 0.38% 2.56% 8% $24.85 2.10%e $2,485 0.05% 0.38% (0.05)% 0% Commencement of operations. Based on average shares outstanding throughout each period. Rounds to less than $0.01. 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. Not annualized. 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. Annualized for periods of less than one year. Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. Portfolio turnover rates exclude the portfolio activity of the underlying fund in which the Fund is invested. See page 133 for the portfolio turnover rates of the underlying fund. See notes to financial statements. FINANCIAL HIGHLIGHTS 129 Financial Highlights (Continued) iSHARES® TRUST (For a share outstanding throughout each period) iShares Currency Hedged MSCI EAFE ETF Year ended Jul. 31, 2016 Net asset value, beginning of period $ 27.86 Year ended Jul. 31, 2015 $ 24.77 Period from Jan. 31, 2014a to Jul. 31, 2014 $ 23.74 Income from investment operations: Net investment incomeb Net realized and unrealized gain (loss)c 0.75 (3.38) 1.16 2.63 0.62 1.02 Total from investment operations (2.63) 3.79 1.64 Less distributions from: Net investment income Net realized gain Return of capital (0.69) (0.24) — (0.63) (0.07) — (0.61) — (0.00)d Total distributions (0.93) (0.70) (0.61) Net asset value, end of period $ Total return 24.30 $ (9.41)% Ratios/Supplemental data: Net assets, end of period (000s) Ratio of expenses to average net assetsf,g Ratio of expenses to average net assets prior to waived feesf,g Ratio of net investment income to average net assetsg Portfolio turnover rateh,i 27.86 $ 15.42% $3,542,254 $2,899,161 $ 0.03% 0.05% 0.38% 0.39% 3.04% 4.16% 10% 16% 24.77 6.86%e 2,477 0.06% 0.39% 4.94% 4% a Commencement of operations. b Based on average shares outstanding throughout each period. c The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. d Rounds to less than $0.01. e Not annualized. f The Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying funds in which the Fund is invested. This ratio does not include these indirect fees and expenses. g Annualized for periods of less than one year. 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 134 for the portfolio turnover rates of the underlying fund. See notes to financial statements. 130 2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS Financial Highlights (Continued) iSHARES® TRUST (For a share outstanding throughout each period) iShares Currency Hedged MSCI EAFE Small-Cap ETF Year ended Jul. 31, 2016 Net asset value, beginning of period $25.17 Period from Jun. 29, 2015a to Jul. 31, 2015 $24.37 Income from investment operations: Net investment income (loss)b Net realized and unrealized gain (loss)d 0.55 (1.16) (0.00)c 0.80 Total from investment operations (0.61) 0.80 Less distributions from: Net investment income Net realized gain Return of capital (0.52) (0.19) (0.00)c — — — Total distributions (0.71) — Net asset value, end of period Total return Ratios/Supplemental data: Net assets, end of period (000s) Ratio of expenses to average net assetsf,g Ratio of expenses to average net assets prior to waived feesf,g Ratio of net investment income (loss) to average net assetsg Portfolio turnover rateh,i a b c d e f g h i $23.85 (2.35)% $8,348 0.03% 0.43% 2.34% 9% $25.17 3.28%e $2,517 0.05% 0.43% (0.05)% 0% Commencement of operations. Based on average shares outstanding throughout each period. Rounds to less than $0.01. 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. Not annualized. 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. Annualized for periods of less than one year. Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. Portfolio turnover rates exclude the portfolio activity of the underlying fund in which the Fund is invested. See page 135 for the portfolio turnover rates of the underlying fund. See notes to financial statements. FINANCIAL HIGHLIGHTS 131 Financial Highlights (Continued) iSHARES® TRUST (For a share outstanding throughout each period) iShares MSCI ACWI ETF Year ended Jul. 31, 2016 Net asset value, beginning of year $ 60.04 Year ended Jul. 31, 2015 $ 59.53 Year ended Jul. 31, 2014 $ 52.33 Year ended Jul. 31, 2013 $ 44.40 Year ended Jul. 31, 2012 $ 47.15 Income from investment operations: Net investment incomea Net realized and unrealized gain (loss)b 1.25 (1.40) 1.25 0.47 1.40 7.09 1.16 7.88 1.10 (2.80) Total from investment operations (0.15) 1.72 8.49 9.04 (1.70) Less distributions from: Net investment income (1.46) (1.21) (1.29) (1.11) (1.05) Total distributions (1.46) (1.21) (1.29) (1.11) (1.05) Net asset value, end of year Total return Ratios/Supplemental data: Net assets, end of year (000s) Ratio of expenses to average net assets Ratio of net investment income to average net assets Portfolio turnover ratec $ 58.43 $ (0.13)% 60.04 2.91% $ 59.53 $ 16.29% 52.33 20.54% $ 44.40 (3.47)% $5,527,311 $6,520,074 $5,822,476 $4,049,961 $2,699,465 0.33% 0.33% 0.33% 0.34% 0.34% 2.23% 5% 2.09% 6% 2.46% 5% 2.34% 6% 2.53% 6% a Based on average shares outstanding throughout each period. b The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. c Portfolio turnover rates exclude portfolio securities received or delivered in Creation Units but include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units partially for cash in U.S. dollars. Excluding such cash transactions, the portfolio turnover rates for the years ended July 31, 2016, July 31, 2015, July 31, 2014 and July 31, 2013 were 5%, 5%, 5% and 5%, respectively. See Note 4. See notes to financial statements. 132 2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS Financial Highlights (Continued) iSHARES® TRUST (For a share outstanding throughout each period) iShares MSCI ACWI ex U.S. ETF Year ended Jul. 31, 2016 Net asset value, beginning of year $ 44.18 Year ended Jul. 31, 2015 $ 47.49 Year ended Jul. 31, 2014 $ 42.46 Year ended Jul. 31, 2013 $ 37.35 Year ended Jul. 31, 2012 $ 43.97 Income from investment operations: Net investment incomea Net realized and unrealized gain (loss)b 1.06 (3.54) 1.15 (3.31) 1.38 5.12 1.15 5.05 1.16 (6.59) Total from investment operations (2.48) (2.16) 6.50 6.20 (5.43) Less distributions from: Net investment income (1.04) (1.15) (1.47) (1.09) (1.19) Total distributions (1.04) (1.15) (1.47) (1.09) (1.19) Net asset value, end of year Total return Ratios/Supplemental data: Net assets, end of year (000s) Ratio of expenses to average net assets Ratio of net investment income to average net assets Portfolio turnover ratec $ 40.66 (5.52)% $ 44.18 (4.54)% $ 47.49 15.42% $ 42.46 16.74% $ 37.35 (12.24)% $1,911,104 $2,023,411 $1,776,267 $1,604,870 $ 986,147 0.33% 0.33% 0.33% 0.34% 0.34% 2.67% 11% 2.55% 6% 3.00% 8% 2.76% 7% 3.04% 9% a Based on average shares outstanding throughout each period. b The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. c Portfolio turnover rates exclude portfolio securities received or delivered in Creation Units but include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units partially for cash in U.S. dollars. Excluding such cash transactions, the portfolio turnover rates for the years ended July 31,2016, July 31, 2015, July 31, 2014 and July 31, 2013 were 7%, 4%, 6% and 6%, respectively. See Note 4. See notes to financial statements. FINANCIAL HIGHLIGHTS 133 Financial Highlights (Continued) iSHARES® TRUST (For a share outstanding throughout each period) iShares MSCI EAFE ETF Year ended Jul. 31, 2016 Net asset value, beginning of year $ 64.91 Year ended Jul. 31, 2015 $ 66.89 Year ended Jul. 31, 2014 $ 60.17 Year ended Jul. 31, 2013 $ 50.29 Year ended Jul. 31, 2012 $ 58.87 Income from investment operations: Net investment incomea Net realized and unrealized gain (loss)c 1.73b (6.69) 1.83b (2.11) 2.29 6.66 1.68 9.96 1.70 (8.56) Total from investment operations (4.96) (0.28) 8.95 11.64 (6.86) Less distributions from: Net investment income (1.68) (1.70) (2.23) (1.76) (1.72) Total distributions (1.68) (1.70) (2.23) (1.76) (1.72) Net asset value, end of year Total return Ratios/Supplemental data: Net assets, end of year (000s) Ratio of expenses to average net assets Ratio of expenses to average net assets excluding professional fees for foreign withholding tax claims (Note 9) Ratio of net investment income to average net assets Portfolio turnover rated $ 58.27 $ (7.54)%b 64.91 (0.41)%b $ 66.89 $ 14.89% 60.17 23.39% $ 50.29 (11.54)% $59,853,751 $61,459,174 $55,102,208 $42,058,837 $34,426,719 0.33% 0.34% 0.33% 0.34% 0.34% 0.33% 0.33% n/a n/a n/a 2.99%b 3% 2.84%b 2% 3.47% 5% 2.95% 3% 3.32% 5% a Based on average shares outstanding throughout each period. b Reflects the positive effect of foreign withholding tax claims, net of the associated professional fees (See Note 9), which resulted in the following increases for the years ended July 31, 2016 and July 31, 2015, respectively: • Net investment income per share by $0.02 and $0.06, respectively. • Total return by 0.03% and 0.07%, respectively. • Ratio of net investment income to average net assets by 0.04% and 0.08%, respectively. c The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. d Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. See notes to financial statements. 134 2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS Financial Highlights (Continued) iSHARES® TRUST (For a share outstanding throughout each period) iShares MSCI EAFE Small-Cap ETF Year ended Jul. 31, 2016 Net asset value, beginning of year $ Income from investment operations: Net investment incomea Net realized and unrealized gain (loss)b 51.44 Year ended Jul. 31, 2015 $ 51.45 Year ended Jul. 31, 2014 $ 44.67 Year ended Jul. 31, 2013 $ 35.98 Year ended Jul. 31, 2012 $ 42.77 1.20 (0.54) 1.12 0.11 1.09 6.93 1.05 8.96 1.04 (6.67) 0.66 1.23 8.02 10.01 (5.63) Less distributions from: Net investment income (1.10) (1.24) (1.24) (1.32) (1.16) Total distributions (1.10) (1.24) (1.24) (1.32) (1.16) Total from investment operations Net asset value, end of year Total return Ratios/Supplemental data: Net assets, end of year (000s) Ratio of expenses to average net assets Ratio of net investment income to average net assets Portfolio turnover ratec $ 51.00 $ 51.44 1.35% 2.55% $ 51.45 18.03% $ 44.67 28.21% $ 35.98 (13.06)% $5,967,131 $5,184,949 $4,043,615 $2,179,747 $1,388,891 0.40% 0.40% 0.40% 0.40% 0.40% 2.44% 2.26% 2.15% 2.53% 2.81% 17% 13% 17% 12% 16% a Based on average shares outstanding throughout each period. b The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. c Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. See notes to financial statements. FINANCIAL HIGHLIGHTS 135 Notes to Financial Statements iSHARES® TRUST iShares Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust was established as a Delaware statutory trust pursuant to an Agreement and Declaration of Trust dated December 16, 1999. These financial statements relate only to the following funds (each, a “Fund,” and collectively, the “Funds”): iShares ETF Adaptive Currency Hedged MSCI EAFEa Currency Hedged MSCI ACWI Currency Hedged MSCI ACWI ex U.S. Currency Hedged MSCI EAFE Currency Hedged MSCI EAFE Small-Cap a Diversification Classification Non-diversified Non-diversified Non-diversified Non-diversified Non-diversified Diversification Classification iShares ETF MSCI ACWI MSCI ACWI ex U.S. MSCI EAFE MSCI EAFE Small-Cap Diversified Diversified Diversified Diversified The Fund commenced operations on January 5, 2016. The investment objective of each Fund is to seek investment results that correspond generally to the price and yield performance, before fees and expenses, of its underlying index. The investment adviser uses a “passive” or index approach to try to achieve each Fund’s investment objective. Currently each currency hedged fund seeks to achieve its investment objective by investing a substantial portion of its assets in an iShares fund (an “underlying fund”). The financial statements and schedules of investments for the underlying funds are included in this report and should be read in conjunction with the financial statements of the currency hedged funds. Pursuant to the Trust’s organizational documents, the Funds’ officers and trustees are indemnified against certain liabilities that may arise out of the performance of their duties to the Funds. Additionally, in the normal course of business, the Funds enter into contracts with service providers that contain general indemnification clauses. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred. 1. SIGNIFICANT ACCOUNTING POLICIES The following significant accounting policies are consistently followed by the each Fund in the preparation of its financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. SECURITY VALUATION Each Fund’s investments are valued at fair value each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date should the reporting period end on a day that the Fund’s listing exchange is not open. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) provides oversight of the valuation of investments for the Funds. The investments of each Fund are valued pursuant 136 2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS Notes to Financial Statements (Continued) iSHARES® TRUST to policies and procedures developed by the Global Valuation Committee and approved by the Board of Trustees of the Trust (the “Board”). • Equity investments traded on a recognized securities exchange are valued at that day’s last reported trade price or the official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price. • Exchange-traded funds and closed-end funds traded on a recognized securities exchange are valued at that day’s last reported trade price or the official closing price, as applicable, on the exchange where the fund is primarily traded. Funds traded on a recognized exchange for which there were no sales on that day are valued at the last traded price. • Open-end U.S. mutual funds (including money market funds) are valued at that day’s published net asset value (“NAV”). • Futures contracts are valued at that day’s last reported settlement price on the exchange where the contract is traded. • Forward currency contracts are valued based on that day’s prevailing forward exchange rate for the underlying currencies. In the event that application of these methods of valuation results in a price for an investment which is deemed not to be representative of the fair value of such investment or if a price is not available, the investment will be valued based upon other available factors deemed relevant by the Global Valuation Committee, in accordance with policies approved by the Board. These factors include but are not limited to (i) attributes specific to the investment; (ii) the principal market for the investment; (iii) the customary participants in the principal market for the investment; (iv) data assumptions by market participants for the investment, if reasonably available; (v) quoted prices for similar investments in active markets; and (vi) other factors, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or default rates. Valuations based on such factors are reported to the Board on a quarterly basis. The Global Valuation Committee employs various methods for calibrating valuation approaches for investments where an active market does not exist, including regular due diligence of the Trust’s pricing vendors, a regular review of key inputs and assumptions, transactional back-testing or disposition analysis to compare unrealized gains and losses to realized gains and losses, reviews of missing or stale prices, reviews of large movements in market values, and reviews of market related activity. Fair value pricing could result in a difference between the prices used to calculate a Fund’s NAV and the prices used by the Fund’s underlying index, which in turn could result in a difference between the Fund’s performance and the performance of the Fund’s underlying index. Various inputs are used in determining the fair value of financial instruments. Inputs may be based on independent market data (“observable inputs”) or they may be internally developed (“unobservable inputs”). These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial reporting purposes. The level of a value determined for a financial instrument within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement in its entirety. The categorization of a value determined for a financial instrument within the hierarchy is based upon the pricing transparency of the instrument and is not necessarily an indication of the risk associated with investing in the instrument. The three levels of the fair value hierarchy are as follows: • Level 1 — Unadjusted quoted prices in active markets for identical assets or liabilities; • Level 2 — Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for NOTES TO FINANCIAL STATEMENTS 137 Notes to Financial Statements (Continued) iSHARES® TRUST the asset or liability (such as exchange rates, financing terms, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; and • Level 3 — Unobservable inputs for the asset or liability, including the Global Valuation Committee’s assumptions used in determining the fair value of investments. Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period. SECURITY TRANSACTIONS AND INCOME RECOGNITION Security transactions are accounted for on trade date. Dividend income and capital gain distributions, if any, are recognized on the ex-dividend date, net of any foreign taxes withheld at source. Any taxes withheld that are reclaimable from foreign tax authorities as of July 31, 2016 are reflected in tax reclaims receivable. Non-cash dividends received in the form of stock in an elective dividend, if any, are recorded as dividend income at fair value. Distributions received by the Funds may include a return of capital that is estimated by management. Such amounts are recorded as a reduction of the cost of investments or reclassified to capital gains. Interest income is accrued daily. Realized gains and losses on investment transactions are determined using the specific identification method. FOREIGN CURRENCY TRANSLATION The accounting records of the Funds are maintained in U.S. dollars. Foreign currencies, as well as investment securities and other assets and liabilities denominated in foreign currencies, are translated into U.S. dollars using exchange rates deemed appropriate by the investment adviser. Purchases and sales of securities, income receipts and expense payments are translated into U.S. dollars on the respective dates of such transactions. Each Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of securities. Such fluctuations are reflected by the Funds as a component of realized and unrealized gains and losses from investments for financial reporting purposes. Each Fund reports realized currency gains (losses) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for federal income tax purposes. However, the iShares Adaptive Currency Hedged MSCI EAFE ETF, iShares Currency Hedged MSCI ACWI ETF, iShares Currency Hedged MSCI ACWI ex U.S. ETF, iShares Currency Hedged MSCI EAFE ETF and iShares Currency Hedged MSCI EAFE Small-Cap ETF have elected to treat realized gains (losses) from certain foreign currency contracts as capital gain (loss) for federal income tax purposes. FOREIGN TAXES The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which the Funds invest. These foreign taxes, if any, are paid by the Funds and are reflected in their statements of operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of July 31, 2016, if any, are disclosed in the Funds’ statements of assets and liabilities. 138 2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS Notes to Financial Statements (Continued) iSHARES® TRUST DISTRIBUTIONS TO SHAREHOLDERS Dividends and distributions paid by each Fund are recorded on the ex-dividend dates. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividends and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Funds. LOANS OF PORTFOLIO SECURITIES Each Fund may lend its investment securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the current value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Funds. Any additional required collateral is delivered to the Funds and any excess collateral is returned by the Funds on the next business day. During the term of the loan, each Fund is entitled to all distributions made on or in respect of the loaned securities. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions. On July 23, 2014, the U.S. Securities and Exchange Commission (the “SEC”) adopted amendments to Rule 2a-7 under the 1940 Act, which governs the operations of U.S. money market funds. When implemented in October 2016, the change may affect the Funds with regard to the reinvestment of cash collateral received for securities on loan. The Funds may be exposed to additional risk from reinvesting the cash collateral in money market funds that do not maintain a fixed NAV per share of $1.00. Any cash received as collateral for securities on loan may be reinvested in certain short-term instruments either directly on behalf of a fund or through one or more joint accounts or money market funds, including those managed by BlackRock Fund Advisors (“BFA”), the Funds’ investment adviser, or its affiliates. As of July 31, 2016, any securities on loan were collateralized by cash and/or U.S. government obligations. Cash collateral received was invested in money market funds managed by BFA and is disclosed in the schedules of investments. The securities on loan for each Fund are also disclosed in its schedule of investments. The total value of any securities on loan as of July 31, 2016 and the total value of the related collateral are disclosed in the statements of assets and liabilities. Income earned by the Funds from securities lending is disclosed in the statements of operations. The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, the Funds benefit from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of securities lent. Each Fund could suffer a loss if the value of the investments purchased with cash collateral falls below the value of the cash collateral received. Securities lending transactions are entered into by the Funds under Master Securities Lending Agreements (“MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, a Fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. The value of the collateral is typically greater than that of the market value of the securities loaned, leaving the lender with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, the borrower can resell or re-pledge the loaned securities, and a Fund can reinvest cash collateral, or, upon an event of default, resell or re-pledge the collateral. NOTES TO FINANCIAL STATEMENTS 139 Notes to Financial Statements (Continued) iSHARES® TRUST The following table is a summary of securities lending agreements which are subject to offset under an MSLA as of July 31, 2016: iShares ETF and Counterparty Market Value of Securities on Loan Cash Collateral Received a Non-cash Collateral Received, at Fair Value a Currency Hedged MSCI EAFE Jefferies LLC $ 8,412,900 $ 8,412,900 $ — $ — $ 8,412,900 $ 8,412,900 $ — $ — $ 2,865,494 4,972,773 5,337,865 6,820,026 2,001,507 5,365,836 12,796,977 231,298 394,273 538,116 11,501,074 39,753 10,107,513 16,736,455 $ 2,865,494 4,972,773 5,337,865 6,820,026 2,001,507 5,365,836 12,796,977 231,298 394,273 538,116 11,501,074 32,958 10,107,513 16,736,455 $ — — — — — — — — — — — — — — $ MSCI ACWI Barclays Capital Inc. BNP Paribas Prime Brokerage International Ltd. Citigroup Global Markets Inc. Credit Suisse Securities (USA) LLC Deutsche Bank AG Deutsche Bank Securities Inc. Goldman Sachs & Co. HSBC Bank PLC JP Morgan Securities PLC Jefferies LLC JPMorgan Clearing Corp. Macquarie Capital (USA) Inc. Merrill Lynch, Pierce, Fenner & Smith Morgan Stanley & Co. LLC Morgan Stanley & Co. LLC (U.S. Equity Securities Lending) National Financial Services LLC Nomura Securities International Inc. Scotia Capital (USA) Inc. SG Americas Securities LLC State Street Bank & Trust Company UBS Securities LLC Wells Fargo Securities LLC $ 140 5,534,093 51,896 521,325 310,158 1,127,316 9,158,041 5,403,940 790,799 5,534,093 51,896 521,325 310,158 1,127,316 9,158,041 5,200,384 790,799 102,606,528 $ 102,396,177 2016 $ iSHARES ANNUAL REPORT TO Net Amount b — — — — — — — — — — — (6,795) — — — — — — — — — — — — — — — — (203,556) — — $(210,351) SHAREHOLDERS Notes to Financial Statements (Continued) iSHARES® TRUST iShares ETF and Counterparty MSCI ACWI ex U.S. Barclays Capital Inc. Citigroup Global Markets Inc. Credit Suisse Securities (USA) LLC Deutsche Bank AG Deutsche Bank Securities Inc. Goldman Sachs & Co. JP Morgan Securities PLC JPMorgan Clearing Corp. Macquarie Capital (USA) Inc. Merrill Lynch, Pierce, Fenner & Smith Morgan Stanley & Co. International PLC Morgan Stanley & Co. LLC Morgan Stanley & Co. LLC (U.S. Equity Securities Lending) National Financial Services LLC Nomura Securities International Inc. SG Americas Securities LLC State Street Bank & Trust Company UBS Securities LLC Wells Fargo Securities LLC MSCI EAFE Barclays Capital Inc. Citigroup Global Markets Inc. Credit Suisse Securities (USA) LLC Deutsche Bank Securities Inc. Goldman Sachs & Co. JPMorgan Clearing Corp. Macquarie Capital (USA) Inc. Merrill Lynch, Pierce, Fenner & Smith Morgan Stanley & Co. LLC Morgan Stanley & Co. LLC (U.S. Equity Securities Lending) National Financial Services LLC Nomura Securities International Inc. SG Americas Securities LLC State Street Bank & Trust Company UBS Securities LLC Wells Fargo Securities LLC Market Value of Securities on Loan Cash Collateral Received a Non-cash Collateral Received, at Fair Value a $ $ $ 93,848 630,897 579,405 604,370 1,514,666 650,174 14,220 TO FINANCIAL STATEMENTS 1,850,937 1,573,792 1,922,921 148,965 330,030 2,797,132 99,069 10,615,687 26,125 1,311,624 692,019 7,879,720 93,848 630,897 579,405 604,370 1,514,666 431,333 14,220 — — — — — — — — — — — — $ — — — — — — — — (5,386) — — — — — — — — — — — — — — — (218,841) — $(224,227) $ 33,340,987 $ 33,116,760 $ — $ 266,646 2,211,789 12,708,475 10,679,836 79,162,899 42,422,102 832,129 9,968,653 88,743,177 $ 266,646 2,211,789 8,614,737 10,679,836 79,162,899 42,422,102 689,899 9,968,653 88,743,177 $ — — 4,093,738 — — — — — — $ NOTES 1,850,937 1,573,792 1,922,921 148,965 330,030 2,797,132 99,069 10,615,687 31,511 1,311,624 692,019 7,879,720 Net Amount b $ — — — — — — (142,230) — — 17,294,221 1,764,142 8,320,782 5,475,823 5,408,878 8,683,579 13,521,969 17,294,221 1,764,142 8,320,782 5,475,823 5,408,878 8,525,129 13,521,969 — — — — — — — — — — — — (158,450) — 307,465,100 $ 303,070,682 $ 4,093,738 $(300,680) 141 Notes to Financial Statements (Continued) iSHARES® TRUST iShares ETF and Counterparty MSCI EAFE Small-Cap Barclays Capital Inc. BMO Capital Markets Citigroup Global Markets Inc. Credit Suisse Securities (USA) LLC Deutsche Bank Securities Inc. Goldman Sachs & Co. HSBC Bank PLC Jefferies LLC JPMorgan Clearing Corp. Macquarie Capital (USA) Inc. Merrill Lynch, Pierce, Fenner & Smith Mizuho Securities USA Inc. Morgan Stanley & Co. LLC Nomura Securities International Inc. Scotia Capital (USA) Inc. SEB Securities Inc. SG Americas Securities LLC State Street Bank & Trust Company UBS Securities LLC Wells Fargo Securities LLC Market Value of Securities on Loan Cash Collateral Received a Non-cash Collateral Received, at Fair Value a $ 8,594,366 81,677 13,645,264 34,630,318 21,151,257 85,120,630 2,060,545 2,079,156 40,819,855 9,187,878 16,631,517 280,345 61,744,003 11,633,315 1,123,917 5,120,970 1,438,946 13,066,463 55,665,219 164,015 $ $ $ 384,239,656 8,594,366 81,677 13,645,264 29,701,565 21,151,257 85,120,630 2,060,545 2,079,156 40,819,855 9,187,878 16,631,517 280,345 61,744,003 11,633,315 1,123,917 4,970,897 1,438,946 13,066,463 55,665,219 164,015 $ 379,160,830 — — — 4,928,753 — — — — — — — — — — — — — — — — $ 4,928,753 Net Amount b $ — — — — — — — — — — — — — — — (150,073) — — — — $(150,073) a Collateral received in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by each Fund is disclosed in the Fund’s statement of assets and liabilities. b Additional collateral is delivered to the Funds on the next business day in accordance with the MSLA. The net amount would be subject to the borrower default indemnity in the event of default by a counterparty. 2. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES Pursuant to an Investment Advisory Agreement with the Trust, BFA manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA is responsible for substantially all expenses of the Funds, except interest, taxes, brokerage commissions and other expenses connected with the execution of portfolio transactions, distribution fees, litigation expenses and any extraordinary expenses. For its investment advisory services to the iShares Adaptive Currency Hedged MSCI EAFE ETF, BFA is entitled to an annual investment advisory fee of 0.38% based on the average daily net assets of the Fund. In addition, the Fund indirectly pays its pro rata share of fees and expenses attributable to its investments in other investment companies (“acquired fund fees and expenses”). BFA has contractually agreed to waive a portion of its investment advisory fee for the Fund through November 30, 2020 in an amount equal to the acquired fund fees and expenses, if any, attributable to the Fund’s investments in other iShares funds, if any. BFA has contractually agreed to reduce the investment advisory fee for the Fund through November 30, 2020 so that the investment advisory fee is equal to the acquired fund fees and expenses that would have been experienced by the Fund related to its investments in the iShares MSCI EAFE ETF (“EFA”), after taking into account any fee waivers by EFA, plus 0.03%. For its investment advisory services to the iShares Currency Hedged MSCI ACWI ETF, BFA is entitled to an annual investment advisory fee of 0.38% based on the average daily net assets of the Fund. In addition, the Fund indirectly pays acquired fund fees 142 2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS Notes to Financial Statements (Continued) iSHARES® TRUST and expenses. BFA has contractually agreed to waive a portion of its investment advisory fee for the Fund through November 30, 2020 in an amount equal to the acquired fund fees and expenses, if any, attributable to the Fund’s investments in the iShares MSCI ACWI ETF (“ACWI”). BFA has contractually agreed to reduce the investment advisory fee for the Fund through November 30, 2017 so that the investment advisory fee is equal to the acquired fund fees and expenses that would have been experienced by the Fund related to its investment in ACWI, after taking into account any fee waivers by ACWI, plus 0.03%. For its investment advisory services to the iShares Currency Hedged MSCI ACWI ex U.S. ETF, BFA is entitled to an annual investment advisory fee of 0.38% based on the average daily net assets of the Fund. In addition, the Fund indirectly pays acquired fund fees and expenses. BFA has contractually agreed to waive a portion of its investment advisory fee for the Fund through November 30, 2020 in an amount equal to the acquired fund fees and expenses, if any, attributable to the Fund’s investments in the iShares MSCI ACWI ex U.S. ETF (“ACWX”). BFA has contractually agreed to reduce the investment advisory fee for the Fund through November 30, 2017 so that the investment advisory fee is equal to the acquired fund fees and expenses that would have been experienced by the Fund related to its investment in ACWX, after taking into account any fee waivers by ACWX, plus 0.03%. For its investment advisory services to the iShares Currency Hedged MSCI EAFE ETF, BFA is entitled to an annual investment advisory fee of 0.38% based on the average daily net assets of the Fund. In addition, the Fund indirectly pays acquired fund fees and expenses. BFA has contractually agreed to waive a portion of its investment advisory fee for the Fund through November 30, 2020 in an amount equal to the acquired fund fees and expenses, if any, attributable to the Fund’s investments in other iShares funds, if any. BFA has contractually agreed to reduce the investment advisory fee through November 30, 2020 so that the investment advisory fee is equal to the acquired fund fees and expenses that would have been experienced by the Fund related to its investments in EFA, after taking into account any fee waivers by EFA, plus 0.03%. For its investment advisory services to the iShares Currency Hedged MSCI EAFE Small-Cap ETF, BFA is entitled to an annual investment advisory fee of 0.43% based on the average daily net assets of the Fund. In addition, the Fund indirectly pays acquired fund fees and expenses. BFA has contractually agreed to waive a portion of its investment advisory fee for the Fund through November 30, 2020 in an amount equal to the acquired fund fees and expenses, if any, attributable to the Fund’s investments in the iShares MSCI EAFE Small-Cap ETF (“SCZ”). BFA has contractually agreed to reduce the investment advisory fee for the Fund through November 30, 2017 so that the investment advisory fee is equal to the acquired fund fees and expenses that would have been experienced by the Fund related to its investment in SCZ, taking into account any fee waivers by SCZ, plus 0.03%. For its investment advisory services to each of the iShares MSCI ACWI, iShares MSCI ACWI ex U.S. and iShares MSCI EAFE ETFs, BFA is entitled to an annual investment advisory fee based on each Fund’s allocable portion of the aggregate of the average daily net assets of the Fund and certain other iShares funds, as follows: Investment Advisory Fee 0.350% 0.320 0.280 0.252 Aggregate Average Daily Net Assets First $30 billion Over $30 billion, up to and including $60 billion Over $60 billion, up to and including $90 billion Over $90 billion In addition, each of the iShares MSCI ACWI and iShares MSCI ACWI ex U.S. ETFs indirectly pays acquired fund fees and expenses. BFA has contractually agreed to waive a portion of its investment advisory fees for each of the iShares MSCI ACWI and iShares MSCI ACWI ex U.S. ETFs through November 30, 2016 in an amount equal to the acquired fund fees and expenses attributable to the Fund’s investments in other iShares funds, if any. NOTES TO FINANCIAL STATEMENTS 143 Notes to Financial Statements (Continued) iSHARES® TRUST For its investment advisory services to the iShares MSCI EAFE Small-Cap ETF, BFA is entitled to an annual investment advisory fee based on the Fund’s allocable portion of the aggregate of the average daily net assets of the Fund and certain other iShares funds, as follows: Investment Advisory Fee 0.4000% 0.3800a 0.3610a 0.3430a Aggregate Average Daily Net Assets First $12 billion Over $12 billion, up to and including $18 billionb Over $18 billion, up to and including $24 billionb Over $24 billionb a Investment advisory fee level reflects a 5% reduction (rounded to the fourth decimal place) from the investment advisory fee at the prior aggregate average daily net asset level. b Breakpoint level was added or amended effective July 1, 2016. The SEC has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan in a money market fund managed by BFA, however, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees each Fund bears to an annual rate of 0.04% (the “collateral investment fees”). Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, net of fees and other payments to and from borrowers of securities, and less the collateral investment fees. The Funds retain a portion of securities lending income and remit the remaining portion to BTC as compensation for its services as securities lending agent. Pursuant to a securities lending agreement, each Fund retains 80% of securities lending income and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees. In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across all 1940 Act iShares exchange-traded funds (the “iShares ETF Complex”) in a given calendar year exceeds the aggregate securities lending income generated across the iShares ETF Complex in the calendar year 2013, each Fund, pursuant to a securities lending agreement, will retain for the remainder of that calendar year 85% of securities lending income and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees. For the year ended July 31, 2016, the total of securities lending agent services and collateral investment fees paid were as follows: iShares ETF Adaptive Currency Hedged MSCI EAFE Currency Hedged MSCI ACWI Currency Hedged MSCI ACWI ex U.S. Currency Hedged MSCI EAFE Fees Paid to BTC $ 15 45 46 47,653 Fees Paid to BTC iShares ETF MSCI ACWI MSCI ACWI ex U.S. MSCI EAFE MSCI EAFE Small-Cap $ 382,429 172,316 2,165,135 3,730,552 BlackRock Investments, LLC, an affiliate of BFA, is the distributor for each Fund. Pursuant to the distribution agreement, BFA is responsible for any fees or expenses for distribution services provided to the Funds. Cross trading is the buying or selling of portfolio securities between funds to which BFA (or an affiliate) serves as investment adviser. At its regularly scheduled quarterly meetings, the Board reviews such transactions as of the most recent calendar quarter for compliance with the requirements and restrictions set forth by Rule 17a-7. 144 2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS Notes to Financial Statements (Continued) iSHARES® TRUST For the year ended July 31, 2016, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows: iShares ETF MSCI ACWI MSCI ACWI ex U.S. MSCI EAFE MSCI EAFE Small-Cap Purchases Sales $ 42,079,369 10,568,555 247,216,492 32,779,111 $ 33,788,256 8,391,353 157,471,434 275,899,976 Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is included in “Dividends – affiliated” in the statements of operations. The PNC Financial Services Group, Inc. is the largest stockholder of BlackRock and is considered to be an affiliate of the Funds for 1940 Act purposes. Certain trustees and officers of the Trust are also officers of BTC and/or BFA. 3. INVESTMENT PORTFOLIO TRANSACTIONS Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the year ended July 31, 2016 were as follows: iShares ETF Adaptive Currency Hedged MSCI EAFE Currency Hedged MSCI ACWI Currency Hedged MSCI ACWI ex U.S. Currency Hedged MSCI EAFE Currency Hedged MSCI EAFE Small-Cap MSCI ACWI MSCI ACWI ex U.S. MSCI EAFE MSCI EAFE Small-Cap Purchases $ 96,117 107,252 184,250 325,094,426 730,330 298,091,776 254,083,967 3,230,903,701 1,032,963,351 Sales $ 145,001 147,244 265,216 408,277,718 984,087 319,131,245 218,599,454 1,862,139,514 901,624,177 In-kind transactions (see Note 4) for the year ended July 31, 2016 were as follows: In-kind Purchases iShares ETF Adaptive Currency Hedged MSCI EAFE Currency Hedged MSCI ACWI Currency Hedged MSCI EAFE Currency Hedged MSCI EAFE Small-Cap MSCI ACWI MSCI ACWI ex U.S. MSCI EAFE MSCI EAFE Small-Cap NOTES TO FINANCIAL STATEMENTS $ 2,427,200 — 1,756,725,056 9,618,028 466,814,491 1,027,336,979 3,875,037,465 967,457,763 In-kind Sales $ — 1,170,718 683,512,362 3,519,451 1,167,623,869 903,375,057 418,998,579 223,961,738 145 Notes to Financial Statements (Continued) iSHARES® TRUST 4. CAPITAL SHARE TRANSACTIONS Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at NAV. Except when aggregated in Creation Units, shares of each Fund are not redeemable. Transactions in capital shares for each Fund are disclosed in detail in the statements of changes in net assets. The consideration for the purchase of Creation Units of a fund in the Trust generally consists of the in-kind deposit of a designated portfolio of securities and a specified amount of cash. Certain funds in the Trust may be offered in Creation Units solely or partially for cash in U.S. dollars. Investors purchasing and redeeming Creation Units may pay a purchase transaction fee and a redemption transaction fee directly to State Street Bank and Trust Company, the Trust’s administrator, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units, including Creation Units for cash. Investors transacting in Creation Units for cash may also pay an additional variable charge to compensate the relevant fund for certain transaction costs (i.e., stamp taxes, taxes on currency or other financial transactions, and brokerage costs) and market impact expenses relating to investing in portfolio securities. Such variable charges, if any, are included in “Proceeds from shares sold” in the statements of changes in net assets. From time to time, settlement of securities related to in-kind contributions or in-kind redemptions may be delayed. In such cases, securities related to in-kind contributions are reflected as “Due from custodian” and securities related to in-kind redemptions are reflected as “Securities related to in-kind transactions” in the statements of assets and liabilities. 5. FUTURES CONTRACTS Each Fund may purchase or sell futures contracts, in an effort to help such Fund track its underlying index. A futures contract is a standardized, exchange-traded agreement to buy or sell a financial instrument at a set price on a future date. Upon entering into a futures contract, the Fund is required to pledge to the executing broker which holds segregated from its own assets, an amount of cash, U.S. government securities or other high-quality debt and equity securities equal to the minimum initial margin requirements of the exchange on which the contract is traded. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as margin variation and are recorded by the Fund as unrealized appreciation or depreciation. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Losses may arise if the value of a futures contract decreases due to an unfavorable change in the market rates or values of the underlying instrument during the term of the contract or if the counterparty does not perform under the contract. The use of futures contracts also involves the risk of an imperfect correlation in the movements in the price of futures contracts and the assets underlying such contracts. The following table shows the value of futures contracts held by iShares MSCI EAFE ETF as of July 31, 2016 and the related locations in the statements of assets and liabilities, presented by risk exposure category: Assets Equity contracts: Variation margin / Net assets consist of — net unrealized appreciation (depreciation)a a 146 $21,874,857 Represents cumulative appreciation of futures contracts as reported in the schedule of investments. 2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS Notes to Financial Statements (Continued) iSHARES® TRUST The following table shows the realized and unrealized gains (losses) on futures contracts held by the iShares MSCI EAFE ETF during the year ended July 31, 2016 and the related locations in the statements of operations, presented by risk exposure category: Equity contracts: Futures contracts Net Realized Gain (Loss) Net Change in Unrealized Appreciation/Depreciation $(19,455,446) $ 17,741,991 The following table shows the average quarter-end balances of open futures contracts for the iShares MSCI EAFE ETF for the year ended July 31, 2016: Average value of contracts purchased 6. $382,684,609 FORWARD CURRENCY CONTRACTS Each Fund may enter into forward currency contracts for the purpose of hedging against the effects of foreign currencies on the value of such Fund’s assets that are denominated in a non-U.S. currency. A forward currency contract is an obligation to purchase or sell a currency against another currency at a specified future date at an agreed upon price and quantity. Forward currency contracts are traded over-the-counter (“OTC”) and not on an organized exchange. The contract is marked-to-market daily and the change in market value is recorded as unrealized appreciation or depreciation. When the contract is closed, a realized gain or loss equal to the difference between the value at the time it was opened and the value at the time it was closed is recorded. Losses may arise if there are unfavorable movements in the value of a foreign currency relative to the U.S. dollar or if the counterparties do not meet the terms of the agreement. The Fund’s use of forward currency contracts also involves the risks of imperfect correlation between the value of its currency positions and its other investments or the Fund failing to close out its position due to an illiquid market. The following table shows the value of forward currency contracts held as of July 31, 2016 and the related locations in the statements of assets and liabilities, presented by risk exposure category: Assets Forward currency contracts: Unrealized appreciation on forward currency contracts/Net assets consist of — net unrealized appreciation (depreciation) NOTES TO FINANCIAL STATEMENTS iShares Adaptive Currency Hedged MSCI EAFE ETF iShares Currency Hedged MSCI ACWI ETF iShares Currency Hedged MSCI ACWI ex U.S. ETF $ $ $ 5,338 7,111 27,854 147 Notes to Financial Statements (Continued) iSHARES® TRUST iShares Currency Hedged MSCI EAFE ETF iShares Currency Hedged MSCI EAFE Small-Cap ETF $ 55,945,377 $ iShares Adaptive Currency Hedged MSCI EAFE ETF iShares Currency Hedged MSCI ACWI ETF iShares Currency Hedged MSCI ACWI ex U.S. ETF $ $ $ Forward currency contracts: Unrealized appreciation on forward currency contracts/Net assets consist of — net unrealized appreciation (depreciation) 134,870 Liabilities Forward currency contracts: Unrealized depreciation on forward currency contracts/Net assets consist of — net unrealized appreciation (depreciation) Forward currency contracts: Unrealized depreciation on forward currency contracts/Net assets consist of — net unrealized appreciation (depreciation) 148 8,633 10,468 40,929 iShares Currency Hedged MSCI EAFE ETF iShares Currency Hedged MSCI EAFE Small-Cap ETF $ 66,483,044 $ 2016 162,582 iSHARES ANNUAL REPORT TO SHAREHOLDERS Notes to Financial Statements (Continued) iSHARES® TRUST The following table shows the realized and unrealized gains (losses) on forward currency contracts held during the year ended July 31, 2016 and the related locations in the statements of operations, presented by risk exposure category: Net Realized Gain (Loss) Forward currency contracts: Foreign currency transactions iShares Adaptive Currency Hedged MSCI EAFE ETF iShares Currency Hedged MSCI ACWI ETF iShares Currency Hedged MSCI ACWI ex U.S. ETF $ $ $ (55,827) Forward currency contracts: Foreign currency transactions 12,017 41,745 iShares Currency Hedged MSCI EAFE ETF iShares Currency Hedged MSCI EAFE Small-Cap ETF $ (20,314,563) $ (147,127) Net Change in Unrealized Appreciation/Depreciation Forward currency contracts: Forward currency contracts iShares Adaptive Currency Hedged MSCI EAFE ETF iShares Currency Hedged MSCI ACWI ETF iShares Currency Hedged MSCI ACWI ex U.S. ETF $ $ $ (3,295) Forward currency contracts: Forward currency contracts (31,687) (71,274) iShares Currency Hedged MSCI EAFE ETF iShares Currency Hedged MSCI EAFE Small-Cap ETF $ (54,585,798) $ (74,515) The following table shows the average quarter-end balances of outstanding forward currency contracts for the year ended July 31, 2016: Average amounts purchased in U.S. dollars Average amounts sold in U.S. dollars NOTES TO FINANCIAL STATEMENTS iShares Adaptive Currency Hedged MSCI EAFE ETF iShares Currency Hedged MSCI ACWI ETF iShares Currency Hedged MSCI ACWI ex U.S. ETF $ $ $ 1,668,629 2,856,729 1,040,903 2,032,117 2,347,916 4,588,429 149 Notes to Financial Statements (Continued) iSHARES® TRUST iShares Currency Hedged MSCI EAFE ETF Average amounts purchased in U.S. dollars Average amounts sold in U.S. dollars $4,002,320,788 7,368,815,775 iShares Currency Hedged MSCI EAFE Small-Cap ETF $ 8,848,467 16,010,269 The Funds’ risk of loss from counterparty credit risk on OTC derivatives is generally limited to the aggregate unrealized gain netted against any collateral held by the Funds. In order to better define their contractual rights and to secure rights that will help the Funds to mitigate their counterparty risk, the Funds may enter into an International Swaps and Derivatives Association, Inc. master agreement (“ISDA Master Agreement”) or similar agreement with their derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between the Funds and a counterparty that governs OTC derivatives and foreign exchange contracts and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/ or termination event. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default including the bankruptcy or insolvency of the counterparty. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset in bankruptcy or insolvency. The collateral requirements under an ISDA Master Agreement are typically calculated by netting the mark-to-market amount for each transaction under such agreement, and comparing that amount to the value of any collateral currently pledged by the parties. Forward currency contracts held by the Funds generally do not require collateral. To the extent amounts due to the Funds from the counterparty are not fully collateralized, contractually or otherwise, the Funds bear the risk of loss from counterparty nonperformance. The Funds attempt to mitigate counterparty risk by only entering into agreements with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. For financial reporting purposes, the Funds do not offset financial assets and financial liabilities that are subject to netting arrangements in the statements of assets and liabilities. The following table presents the exposure of the open forward currency contracts that are subject to potential offset in the statements of assets and liabilities as of July 31, 2016: Derivative Assets Subject to Offsetting 150 Derivatives Available for Offset Net Amount of Derivative Assets iShares Adaptive Currency Hedged MSCI EAFE ETF Forward currency contracts $ 5,338 $ (5,338) $ — iShares Currency Hedged MSCI ACWI ETF Forward currency contracts $ 7,111 $ (7,111) $ — iShares Currency Hedged MSCI ACWI ex U.S. ETF Forward currency contracts $ 27,854 $ (27,854) $ — iShares Currency Hedged MSCI EAFE ETF Forward currency contracts $55,945,377 $(55,945,377) $ — iShares Currency Hedged MSCI EAFE Small-Cap ETF Forward currency contracts $ $ $ — 134,870 2016 (134,870) iSHARES ANNUAL REPORT TO SHAREHOLDERS Notes to Financial Statements (Continued) iSHARES® TRUST Derivative Liabilities Subject to Offsetting 7. Derivatives Available for Offset Net Amount of Derivative Liabilities iShares Adaptive Currency Hedged MSCI EAFE ETF Forward currency contracts $ 8,633 $ (5,338) $ 3,295 iShares Currency Hedged MSCI ACWI ETF Forward currency contracts $ 10,468 $ (7,111) $ 3,357 iShares Currency Hedged MSCI ACWI ex U.S. ETF Forward currency contracts $ 40,929 $ (27,854) $ 13,075 iShares Currency Hedged MSCI EAFE ETF Forward currency contracts $66,483,044 iShares Currency Hedged MSCI EAFE SmallCap ETF Forward currency contracts $ 162,582 $(55,945,377) (134,870) $10,537,667 $ 27,712 PRINCIPAL RISKS In the normal course of business, each Fund’s investment activities expose it to various types of risk associated with the financial instruments and markets in which it invests. The significant types of financial risks each Fund is exposed to include market risk and credit risk. Each Fund’s prospectus provides details of these and other types of risk. BFA uses a “passive” or index approach to try to achieve each Fund’s investment objective following the securities included in its underlying index during upturns as well as downturns. BFA does not take steps to reduce market exposure or to lessen the effects of a declining market. Divergence from the underlying index and the composition of the portfolio is monitored by BFA. MARKET RISK Market risk arises mainly from uncertainty about future values of financial instruments influenced by price, currency and interest rate movements. It represents the potential loss each Fund may suffer through holding market positions in the face of market movements. Each Fund is exposed to market risk by virtue of its direct and/or indirect investment in equity and financial derivative instruments. The fair value of securities held by the Funds may decline due to general market conditions, economic trends or events that are not specifically related to the issuers of the securities including local, regional or global political, social or economic instability or to factors that affect a particular industry or group of industries. The extent of each Fund’s exposure to market risk is the market value of the investments held as shown in the Fund’s schedule of investments. A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within each Fund’s portfolio are disclosed in its schedule of investments. Investing in the securities of non-U.S. issuers, whether directly or indirectly, involves certain considerations and risks not typically associated with securities of U.S. issuers. Such risks include, but are not limited to: generally less liquid and less efficient securities markets; generally greater price volatility; exchange rate fluctuations and exchange controls; imposition of restrictions on the expatriation of funds or other assets of a Fund; less publicly available information about issuers; the imposition of NOTES TO FINANCIAL STATEMENTS 151 Notes to Financial Statements (Continued) iSHARES® TRUST withholding or other taxes; higher transaction and custody costs; settlement delays and risk of loss attendant in settlement procedures; difficulties in enforcing contractual obligations; less regulation of securities markets; different accounting, disclosure and reporting requirements; more substantial governmental involvement in the economy; higher inflation rates; greater social, economic and political uncertainties; the risk of nationalization or expropriation of assets; and the risk of war. These risks are heightened for investments in issuers from countries with less developed markets. The economies and markets of European countries are often closely connected and interdependent, and events in one European country can have an adverse impact on other European countries. The European financial markets have experienced volatility and adverse trends due to concerns about economic downturns in, or rising government debt levels of several European countries. Responses to the financial problems by European governments, central banks and others, including austerity measures and reforms, may not work, may result in social unrest and may limit future growth and economic recovery or have other unintended consequences. Further defaults or restructurings by governments and others of their debt could have additional adverse effects on economies, financial markets and asset valuations around the world. In addition, the United Kingdom has voted to withdraw from the European Union. The referendum may introduce significant new uncertainties and instability in the financial markets as the United Kingdom negotiates its exit from the European Union. The United States and the European Union, along with the regulatory bodies of a number of countries including Japan, Australia and Canada (collectively, “Sanctioning Bodies”), have imposed sectorial economic sanctions on certain Russian individuals and Russian corporate entities which include prohibitions on transacting in or dealing in new debt of longer than 30 or 90 days maturity or new equity of such issuers. Securities held by the iShares MSCI ACWI ETF and iShares MSCI ACWI ex U.S. ETF issued prior to the date of the sanctions being imposed are not currently subject to any restrictions under the sanctions. However, compliance with each of these sanctions may impair the ability of a fund to buy, sell, hold, receive or deliver the affected securities or other securities of such issuers. The Sanctioning Bodies could also institute broader sanctions on Russia. These sanctions, or even the threat of further sanctions, may result in the decline of the value and liquidity of Russian securities, a weakening of the ruble or other adverse consequences to the Russian economy. Current or future sanctions may result in Russia taking counter measures or retaliatory actions, which may further impair the value and liquidity of Russian securities. These retaliatory measures may include the immediate freeze of Russian assets held by a fund. CREDIT RISK Credit risk is the risk that an issuer or guarantor of debt instruments or the counterparty to a financial transaction, including derivatives contracts, repurchase agreements or loans of portfolio securities, is unable or unwilling to make timely interest and/or principal payments or to otherwise honor its obligations. BFA and its affiliates manage counterparty credit risk by entering into transactions only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Funds to issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of each Fund’s exposure to credit and counterparty risks with respect to those financial assets is approximated by their value recorded in its statement of assets and liabilities. 8. INCOME TAX INFORMATION Each Fund is treated as an entity separate from the Trust’s other funds for federal income tax purposes. It is the policy of each Fund to qualify as a regulated investment company by complying with the provisions applicable to regulated investment companies, as defined under Subchapter M of the Internal Revenue Code of 1986, as amended, and to annually distribute substantially all of its ordinary income and any net capital gains (taking into account any capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income and excise taxes. Accordingly, no provision for federal income taxes is required. 152 2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS Notes to Financial Statements (Continued) iSHARES® TRUST U.S. GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or NAV per share. The following permanent differences as of July 31, 2016, attributable to passive foreign investment companies, the characterization of corporate actions, foreign currency transactions and realized gains (losses) from in-kind redemptions, were reclassified to the following accounts: Paid-in Capital iShares ETF Currency Hedged MSCI ACWI Currency Hedged MSCI EAFE Currency Hedged MSCI EAFE Small-Cap MSCI ACWI MSCI ACWI ex U.S. MSCI EAFE MSCI EAFE Small-Cap $ (42,288) 20,736,464 (104,641) 203,082,459 22,860,151 123,042,380 61,162,455 Undistributed Net Investment Income/Distributions in Excess of Net Investment Income Undistributed Net Realized Gain/Accumulated Net Realized Loss $ $ — — — 5,771,800 2,014,273 1,295,238 7,392,530 42,288 (20,736,464) 104,641 (208,854,259) (24,874,424) (124,337,618) (68,554,985) The tax character of distributions paid during the years ended July 31, 2016 and July 31, 2015 was as follows: iShares ETF Adaptive Currency Hedged MSCI EAFE Ordinary income Return of capital Currency Hedged MSCI ACWI Ordinary income Long-term capital gain Return of capital Currency Hedged MSCI ACWI ex U.S. Ordinary income Long-term capital gain Return of capital Currency Hedged MSCI EAFE Ordinary income Long-term capital gain Currency Hedged MSCI EAFE Small-Cap Ordinary income Long-term capital gain Return of capital NOTES TO FINANCIAL STATEMENTS 2016 2015 $ 48,166 146 N/A N/A $ 48,312 $ 59,358 17,571 35 $ — — — $ 76,964 $ — $ 87,513 36,040 71 $ — — — $ 123,624 $ — $ 112,358,771 18,868,462 $ 46,493,844 100,094 $ 131,227,233 $ 46,593,938 $ 231,861 49,027 329 $ — — — $ 281,217 $ — 153 Notes to Financial Statements (Continued) iSHARES® TRUST iShares ETF 2016 2015 MSCI ACWI Ordinary income $ 148,572,041 $ 140,575,067 MSCI ACWI ex U.S. Ordinary income $ $ MSCI EAFE Ordinary income $1,704,075,846 $1,551,620,270 MSCI EAFE Small-Cap Ordinary income $ 124,440,947 $ 106,231,273 54,936,333 49,930,046 As of July 31, 2016, the tax components of accumulated net earnings (losses) were as follows: iShares ETF Undistributed Ordinary Income Capital Loss Carryforwards Net Unrealized Gains (Losses) a Qualified Late-Year Losses b Total Adaptive Currency Hedged MSCI EAFE $ — $ (62,392) $ 10,853 $ — $ (51,539) Currency Hedged MSCI ACWI — — (21,280) (28,330) (49,610) Currency Hedged MSCI ACWI ex U.S. — — (192,380) (53,347) (245,727) Currency Hedged MSCI EAFE — — (327,093,951) (90,372,210) (417,466,161) Currency Hedged MSCI EAFE Small-Cap — — 223,791 (265,866) (42,075) MSCI ACWI 8,941,596 (143,738,985) (13,583,715) (55,330,059) (203,711,163) MSCI ACWI ex U.S. 6,854,170 (72,943,870) (276,462,708) (64,275,297) (406,827,705) MSCI EAFE 129,341,193 (5,059,550,950) (2,645,450,315) (864,646,805) (8,440,306,877) MSCI EAFE Small-Cap 52,398,496 (17,162,236) 296,323,767 (17,448,857) 314,111,170 a The difference between book-basis and tax-basis unrealized gains (losses) was attributable primarily to the tax deferral of losses on wash sales, the realization for tax purposes of unrealized gains (losses) on certain futures contracts and foreign currency contracts, the foreign withholding tax reclaims and the realization for tax purposes of unrealized gains on investments in passive foreign investment companies. b The Funds have elected to defer certain qualified late-year losses and recognize such losses in the next taxable year. 154 2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS Notes to Financial Statements (Continued) iSHARES® TRUST As of July 31, 2016, the following Funds had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates as follows: iShares ETF Adaptive Currency Hedged MSCI EAFE MSCI ACWI MSCI ACWI ex U.S. MSCI EAFE MSCI EAFE Small-Cap a Expiring 2017 NonExpiring a $ 62,392 131,258,397 57,604,936 1,977,863,038 9,856,860 $ — 568,319 450,894 587,985,426 — Expiring 2018 $ — 5,090,715 7,365,062 1,597,347,728 7,305,376 Expiring 2019 $ — 6,821,554 7,522,978 896,354,758 — Total $ 62,392 143,738,985 72,943,870 5,059,550,950 17,162,236 Must be utilized prior to losses subject to expiration. The Funds may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” The Funds may elect to mark-to-market annually the shares of each passive foreign investment company and would be required to distribute to shareholders any such marked-to-market gains. Management has analyzed tax laws and regulations and their application to the Funds as of July 31, 2016, inclusive of the open tax return years, and does not believe there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements. 9. FOREIGN WITHHOLDING TAX CLAIMS The iShares MSCI EAFE ETF filed claims to recover taxes withheld on dividend income by certain jurisdictions in the European Union (the “EU”) on the basis that those jurisdictions had purportedly violated certain provisions in the Treaty on the Functioning of the European Union. The Fund has received payments on certain of the claims resulting from a recognition of claims by Finland and a May 2014 favorable court ruling in Sweden that the imposition of a withholding tax by an EU member country on dividends paid to a non-resident company, including the Fund, while exempting domestic funds from such taxes results in discriminatory tax withholding contrary to the free movement of capital. Based on these favorable determinations, the Fund has recorded a receivable for all recoverable taxes withheld by Finland and Sweden. Withholding tax claims may be for the current year and potentially for a limited number of prior calendar years, depending upon the member country’s statute of limitation on taxes. The Fund continues to evaluate developments in Finland and Sweden for potential impacts to the receivables recorded. Such foreign withholding tax claims are disclosed in the statement of assets and liabilities and statement of operations. Professional fees associated with the filing of these claims resulting in the recovery of foreign withholding taxes were approved by the Board as appropriate expenses of the Fund. The Internal Revenue Service has issued guidance to address U.S. income tax liabilities attributable to fund shareholders resulting from the recovery of foreign taxes withheld in prior calendar years. These withheld foreign taxes were passed through to shareholders in the form of foreign tax credits in the year the taxes were withheld. Assuming there are sufficient foreign taxes paid in the current year, the Fund will be able to offset the prior years’ withholding taxes recovered against the foreign taxes paid in the current year. Accordingly, no federal income tax liability is recorded by the Fund. 10. SUBSEQUENT EVENTS Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or disclosure in the financial statements. NOTES TO FINANCIAL STATEMENTS 155 Report of Independent Registered Public Accounting Firm To the Shareholders and Board of Trustees of iShares Trust: In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of iShares Adaptive Currency Hedged MSCI EAFE ETF, iShares Currency Hedged MSCI ACWI ETF, iShares Currency Hedged MSCI ACWI ex U.S. ETF, iShares Currency Hedged MSCI EAFE ETF, iShares Currency Hedged MSCI EAFE Small-Cap ETF, iShares MSCI ACWI ETF, iShares MSCI ACWI ex U.S. ETF, iShares MSCI EAFE ETF and iShares MSCI EAFE Small-Cap ETF (the “Funds”) at July 31, 2016, the results of each of their operations, the changes in each of their net assets and their financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at July 31, 2016 by correspondence with the custodian, transfer agent and brokers, provide a reasonable basis for our opinion. PricewaterhouseCoopers LLP San Francisco, California September 26, 2016 156 2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS Tax Information (Unaudited) iSHARES® TRUST The following maximum amounts are hereby designated as qualified dividend income for individuals for the fiscal year ended July 31, 2016: Qualified Dividend Income iShares ETF Adaptive Currency Hedged MSCI EAFE Currency Hedged MSCI ACWI Currency Hedged MSCI ACWI ex U.S. Currency Hedged MSCI EAFE Currency Hedged MSCI EAFE Small-Cap $ Qualified Dividend Income iShares ETF 47,236 44,763 52,217 101,749,485 128,249 MSCI ACWI MSCI ACWI ex U.S. MSCI EAFE MSCI EAFE Small-Cap $ 141,879,972 58,463,475 1,886,743,029 118,855,830 For corporate shareholders, the percentage of income dividends paid during the fiscal year ended July 31, 2016 that qualified for the dividends-received deduction were as follows: iShares ETF Currency Hedged MSCI ACWI MSCI ACWI DividendsReceived Deduction 44.34% 48.20 For the fiscal year ended July 31, 2016, the following Funds earned foreign source income and paid foreign taxes which they intend to pass through to their shareholders: iShares ETF Foreign Source Income Earned MSCI ACWI ex U.S. MSCI EAFE MSCI EAFE Small-Cap $ 67,860,335 2,019,703,111 145,703,284 Foreign Taxes Paid $ 5,867,865 128,081,639 9,929,783 For the fiscal year ended July 31, 2016, the following Funds intend to pass through to their shareholders foreign source income earned and foreign taxes paid by the underlying funds: iShares ETF Adaptive Currency Hedged MSCI EAFE Currency Hedged MSCI ACWI ex U.S. Currency Hedged MSCI EAFE Currency Hedged MSCI EAFE Small-Cap TAX INFORMATION Foreign Source Income Earned Foreign Taxes Paid $ $ 52,512 62,637 111,215,851 203,996 3,991 6,227 7,819,716 15,018 157 Tax Information (Unaudited) (Continued) iSHARES® TRUST The following Funds hereby designate the following amounts as 20% rate long-term capital gain dividends for the fiscal year ended July 31, 2016: iShares ETF Currency Hedged MSCI ACWI Currency Hedged MSCI ACWI ex U.S. Currency Hedged MSCI EAFE Currency Hedged MSCI EAFE Small-Cap Long-Term Capital Gain $ 17,571 36,040 18,868,462 49,027 The following Funds hereby designate the following amounts as short-term capital gain dividends for the fiscal year ended July 31, 2016: iShares ETF Currency Hedged MSCI ACWI Currency Hedged MSCI ACWI ex U.S. Currency Hedged MSCI EAFE Currency Hedged MSCI EAFE Small-Cap 158 Short-Term Capital Gain $ 15,100 31,179 9,763,472 37,945 2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS Board Review and Approval of Investment Advisory Contract iSHARES® TRUST I. iShares Currency Hedged MSCI EAFE ETF Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Trustees who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Trustees”), is required annually to consider and approve the Investment Advisory Contract between the Trust and BFA (the “Advisory Contract”) on behalf of the Fund. The Independent Trustees requested, and BFA provided, such information as the Independent Trustees, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. A committee of all of the Independent Trustees (the “15(c) Committee”), with independent counsel, met with management on April 28, 2016 and May 9, 2016. At these meetings, the 15(c) Committee reviewed and discussed information provided in response to the 15(c) Committee’s initial requests, and requested certain additional information, which management agreed to provide. At a meeting held on May 17, 2016, management presented information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its meetings. The Board, including the Independent Trustees, reviewed and discussed such information at length. The Independent Trustees requested from management certain additional information, which management agreed to provide. At a meeting held on June 21-23, 2016, the Board, including the Independent Trustees, reviewed the additional information provided by management in response to these requests. After extensive discussions, the Board, including all of the Independent Trustees, approved the continuance of the Advisory Contract for the Fund, based on a review of qualitative and quantitative information provided by BFA, including the additional information management provided at the request of the Independent Trustees. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Board also noted that the Board and BFA agreed to discuss potential enhancements and adjustments to the 15(c) process for the coming year. The Independent Trustees were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Contract for the Fund, the Board, including the Independent Trustees, considered the following factors, no one of which was controlling, and reached the following conclusions: Expenses and Performance of the Fund — The Board reviewed statistical information prepared by Broadridge Financial Solutions Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, waivers/reimbursements (if any), and underlying fund fees and expenses (if any) of the Fund in comparison with the same information for other exchange traded funds (including, where applicable, funds sponsored by an “at cost” service provider) and, in the limited instances where no comparable ETFs existed and the comparison group would not otherwise be reasonable in Broadridge’s judgment, pure index institutional mutual funds, objectively selected by Broadridge as comprising the Fund’s applicable peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of Broadridge’s proprietary ETF methodology used by Broadridge to determine the Fund’s Peer Group. The Board further noted that due to the limitations in providing comparable funds in the Peer Group, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Fund in all instances. The Board also noted that the investment advisory fee rate and overall expenses (net of waivers and reimbursements) for the Fund were within range of the median of the investment advisory fee rates and overall expenses (net of waivers and reimbursements) of the funds in its Peer Group, excluding iShares funds. In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as the Fund, Broadridge also provided, and the Board reviewed, a comparison of the Fund’s performance for the one-, three-, five-, ten-year, and since inception periods, as applicable, and for the “last quarter” period ended December 31, 2015, to that of such relevant comparison funds for the same periods. BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT 159 Board Review and Approval of Investment Advisory Contract (Continued) iSHARES® TRUST The Board noted that the Fund seeks to track its own underlying index and that, during the year, the Board received periodic reports on the Fund’s short- and longer-term performance in comparison with its underlying index. Such periodic comparative performance information, including additional detailed information on certain specific iShares funds requested by the Board, was also considered. The Board noted that the Fund generally performed in line with its underlying index over the relevant periods. Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and expense level and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Contract for the coming year. Nature, Extent and Quality of Services Provided by BFA — Based on management’s representations, including information about recent and proposed enhancements to the iShares business, including with respect to capital markets support and analysis, product design and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting the iShares funds and their shareholders. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the dayto-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 21-23, 2016 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that the Fund had met its investment objective consistently since its inception date. Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided by BFA to the Fund under the Advisory Contract supported the Board’s approval of the continuance of the Advisory Contract for the coming year. Costs of Services Provided to the Fund and Profits Realized by BFA and its Affiliates — The Board reviewed information about the profitability to BlackRock of the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and all other sources of revenue and expense to BFA and its affiliates from the Funds’ operations for the last calendar year. The Board reviewed BlackRock’s profitability methodology for the iShares funds, noting that the 15(c) Committee had focused on the methodology and profitability presentation during its meetings. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BTC from securities lending by the Fund. The Board also discussed BFA’s profit margin as reflected in the Fund’s profitability analysis and reviewed information regarding potential economies of scale (as discussed below). Based on this review, the Board concluded that the profits realized by BFA and its affiliates under the Advisory Contract and from other relationships between the Fund and BFA and/or its affiliates, if any, were within a reasonable range in light of the factors considered. Economies of Scale — The Board reviewed information regarding potential economies of scale or other efficiencies that may result from increases in the Fund’s assets, noting that the issue of economies of scale had been focused on extensively by the 15(c) Committee during its meetings and addressed by management. The Board and the 15(c) Committee reviewed information provided by BFA regarding scale benefits shared with the iShares funds through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision 160 2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS Board Review and Approval of Investment Advisory Contract (Continued) iSHARES® TRUST of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board and the 15(c) Committee received information regarding BlackRock’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished, among other things, between fixed and variable costs, and explained how the level of fixed and variable costs, as well as the nature of such costs, may impact the existence or size of scale benefits. The Board noted that the Advisory Contract for the Fund did not provide for any breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board noted that to the extent that the Fund invests in the unhedged iShares MSCI EAFE ETF (“EFA”), Fund shareholders would benefit from breakpoints in EFA’s investment advisory fee rates as the assets of EFA, on an aggregated basis with the assets of other iShares funds, increase. The Board further noted that should material economies of scale exist in the future that are not otherwise shared, a breakpoint structure for the Fund may be appropriate, and that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding breakpoints in the future. Based on this review, as well as the other factors considered at the meeting, the Board, recognizing its responsibility to consider this issue periodically, determined to approve the continuance of the Advisory Contract for the coming year. Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates — The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (together, the “Other Accounts”), and acknowledged BFA’s assertion that the iShares funds are fundamentally different investment vehicles from the Other Accounts. The Board noted that BFA and its affiliates do not manage Other Accounts with substantially the same investment objective and strategy as the Fund and that track the same index as the Fund. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the Fund, including in terms of the different and generally more extensive services provided to the Fund, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded exchange traded fund, as compared to the Other Accounts that are institutional clients in light of differing regulatory requirements and client-imposed mandates. The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Contract for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed. Other Benefits to BFA and/or its Affiliates — The Board reviewed the “fallout” benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, such as payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s profitability methodology), and payment of advisory fees and/or administration fees to BFA and BTC (or their affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services and/or administration services. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Fund. The Board further noted that any portfolio transactions on behalf of the Fund placed through a BFA affiliate or purchased from an underwriting syndicate in which a BFA affiliate participates, are reported to the Board pursuant to Rule 17e-1 or Rule 10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund’s shareholders and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Contract for the coming year. BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT 161 Board Review and Approval of Investment Advisory Contract (Continued) iSHARES® TRUST Based on the considerations described above, the Board determined that the Fund’s investment advisory fee rate under the Advisory Contract does not constitute a fee that is so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded that it is in the best interest of the Fund and its shareholders to approve the continuance of the Advisory Contract for the coming year. II. iShares MSCI ACWI ETF, iShares MSCI ACWI ex U.S. ETF and iShares MSCI EAFE ETF Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Trustees who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Trustees”), is required annually to consider and approve the Investment Advisory Contract between the Trust and BFA (the “Advisory Contract”) on behalf of the Funds. The Independent Trustees requested, and BFA provided, such information as the Independent Trustees, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. A committee of all of the Independent Trustees (the “15(c) Committee”), with independent counsel, met with management on April 28, 2016 and May 9, 2016. At these meetings, the 15(c) Committee reviewed and discussed information provided in response to the 15(c) Committee’s initial requests, and requested certain additional information, which management agreed to provide. At a meeting held on May 17, 2016, management presented information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its meetings. The Board, including the Independent Trustees, reviewed and discussed such information at length. The Independent Trustees requested from management certain additional information, which management agreed to provide. At a meeting held on June 21-23, 2016, the Board, including the Independent Trustees, reviewed the additional information provided by management in response to these requests. After extensive discussions, the Board, including all of the Independent Trustees, approved the continuance of the Advisory Contract for the Funds, based on a review of qualitative and quantitative information provided by BFA, including the additional information management provided at the request of the Independent Trustees. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Board also noted that the Board and BFA agreed to discuss potential enhancements and adjustments to the 15(c) process for the coming year. The Independent Trustees were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Contract for the Funds, the Board, including the Independent Trustees, considered the following factors, no one of which was controlling, and reached the following conclusions: Expenses and Performance of the Funds — The Board reviewed statistical information prepared by Broadridge Financial Solutions Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, waivers/reimbursements (if any), and underlying fund fees and expenses (if any) of each Fund in comparison with the same information for other exchange traded funds (including, where applicable, funds sponsored by an “at cost” service provider) and, in the limited instances where no comparable ETFs existed and the comparison group would not otherwise be reasonable in Broadridge’s judgment, pure index institutional mutual funds, objectively selected by Broadridge as comprising such Fund’s applicable peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of Broadridge’s proprietary ETF methodology used by Broadridge to determine the applicable Peer Groups. The Board further noted that due to the limitations in providing comparable funds in the various Peer Groups, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Funds in all instances. The Board also noted that the investment advisory fee rates and overall expenses (net of waivers and reimbursements) for the Funds were lower than the median of the investment advisory fee rates and overall expenses (net of waivers and reimbursements) of the funds in their respective Peer Group, excluding iShares funds. 162 2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS Board Review and Approval of Investment Advisory Contract (Continued) iSHARES® TRUST In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as any particular Fund, Broadridge also provided, and the Board reviewed, a comparison of such Fund’s performance for the one-, three-, five-, ten-year, and since inception periods, as applicable, and for the “last quarter” period ended December 31, 2015, to that of such relevant comparison funds for the same periods. The Board noted that each Fund seeks to track its own underlying index and that, during the year, the Board received periodic reports on each Fund’s short- and longer-term performance in comparison with its underlying index. Such periodic comparative performance information, including additional detailed information on certain specific iShares funds requested by the Board, was also considered. The Board noted that each Fund generally performed in line with its underlying index over the relevant periods. Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and expense level and the historical performance of each Fund supported the Board’s approval of the continuance of the Advisory Contract for the coming year. Nature, Extent and Quality of Services Provided by BFA — Based on management’s representations, including information about recent and proposed enhancements to the iShares business, including with respect to capital markets support and analysis, product design and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting the iShares funds and their shareholders. The Board also considered BFA’s compliance program and its compliance record with respect to the Funds. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the dayto-day management of the Funds, as well as the resources available to them in managing the Funds. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 21-23, 2016 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that each Fund had met its investment objective consistently since its respective inception date. Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided by BFA to the Funds under the Advisory Contract supported the Board’s approval of the continuance of the Advisory Contract for the coming year. Costs of Services Provided to the Funds and Profits Realized by BFA and its Affiliates — The Board reviewed information about the profitability to BlackRock of the Funds, on a Fund-by-Fund basis and in the aggregate, based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and all other sources of revenue and expense to BFA and its affiliates from the Funds’ operations for the last calendar year. The Board reviewed BlackRock’s profitability methodology for the iShares funds, noting that the 15(c) Committee had focused on the methodology and profitability presentation during its meetings. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BTC from securities lending by the Funds. The Board also discussed BFA’s profit margin as reflected in the Funds’ profitability analyses and reviewed information regarding potential economies of scale (as discussed below). Based on this review, the Board concluded that the profits realized by BFA and its affiliates under the Advisory Contract and from other relationships between the Funds and BFA and/or its affiliates, if any, were within a reasonable range in light of the factors considered. BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT 163 Board Review and Approval of Investment Advisory Contract (Continued) iSHARES® TRUST Economies of Scale — The Board reviewed information regarding potential economies of scale or other efficiencies that may result from increases in the Funds’ assets, noting that the issue of economies of scale had been focused on extensively by the 15(c) Committee during its meetings and addressed by management. The Board and the 15(c) Committee reviewed information provided by BFA regarding scale benefits shared with the iShares funds through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board and the 15(c) Committee received information regarding BlackRock’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished, among other things, between fixed and variable costs, and explained how the level of fixed and variable costs, as well as the nature of such costs, may impact the existence or size of scale benefits. The Board noted that the Advisory Contract for the Funds already provided for breakpoints in the Funds’ investment advisory fee rates as the assets of the Funds, on an aggregated basis with the assets of certain other iShares funds, increase. The Board noted that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding new or revised breakpoints in the future. Based on this review, as well as the other factors considered at the meeting, the Board, recognizing its responsibility to consider this issue periodically, determined to approve the continuance of the Advisory Contract for the coming year. Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates — The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (together, the “Other Accounts”), and acknowledged BFA’s assertion that the iShares funds are fundamentally different investment vehicles from the Other Accounts. The Board noted that BFA and its affiliates do manage Other Accounts with substantially the same investment objectives and strategies as the Funds and that track the same respective indexes as the Funds. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the Funds, including in terms of the different and generally more extensive services provided to the Funds, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Funds, as publicly traded exchange traded funds, as compared to the Other Accounts that are institutional clients in light of differing regulatory requirements and client-imposed mandates. Further, with respect to comparisons with one or more open-end index mutual funds registered under the 1940 Act managed by BFA (or an affiliate) that track the same index as iShares MSCI ACWI ex U.S. ETF and have investment advisory fee rates and overall expenses (net of waivers and reimbursements) that are lower than the investment advisory fee rate and overall expenses (net of waivers and reimbursements) of iShares MSCI ACWI ex U.S. ETF or that track the same index as iShares MSCI EAFE ETF and have investment advisory fee rates and overall expenses (net of waivers and reimbursements) that are lower than the investment advisory fee rate and overall expenses (net of waivers and reimbursements) of iShares MSCI EAFE ETF, the Board gave weight to management’s explanations of the relevant circumstances applicable to such mutual funds. The Board also considered the “all-inclusive” nature of the Funds’ advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rates under the Advisory Contract for the Funds were generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed. Other Benefits to BFA and/or its Affiliates — The Board reviewed the “fallout” benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Funds by BFA, such as payment of revenue to BTC, the Funds’ 164 2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS Board Review and Approval of Investment Advisory Contract (Continued) iSHARES® TRUST securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s profitability methodology), and payment of advisory fees and/or administration fees to BFA and BTC (or their affiliates) in connection with any investments by the Funds in other funds for which BFA (or its affiliates) provides investment advisory services and/or administration services. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Funds. The Board further noted that any portfolio transactions on behalf of the Funds placed through a BFA affiliate or purchased from an underwriting syndicate in which a BFA affiliate participates, are reported to the Board pursuant to Rule 17e-1 or Rule 10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Funds’ shareholders and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Contract for the coming year. Based on the considerations described above, the Board determined that each Fund’s investment advisory fee rate under the Advisory Contract does not constitute a fee that is so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded that it is in the best interest of each Fund and its shareholders to approve the continuance of the Advisory Contract for the coming year. III. iShares MSCI EAFE Small-Cap ETF Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Trustees who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Trustees”), is required annually to consider and approve the Investment Advisory Contract between the Trust and BFA (the “Advisory Contract”) on behalf of the Fund. The Independent Trustees requested, and BFA provided, such information as the Independent Trustees, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. A committee of all of the Independent Trustees (the “15(c) Committee”), with independent counsel, met with management on April 28, 2016 and May 9, 2016. At these meetings, the 15(c) Committee reviewed and discussed information provided in response to the 15(c) Committee’s initial requests, and requested certain additional information, which management agreed to provide. At a meeting held on May 17, 2016, management presented information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its meetings. The Board, including the Independent Trustees, reviewed and discussed such information at length. The Independent Trustees requested from management certain additional information, which management agreed to provide. At a meeting held on June 21-23, 2016, the Board, including the Independent Trustees, reviewed the additional information provided by management in response to these requests. After extensive discussions, the Board, including all of the Independent Trustees, approved the continuance of the Advisory Contract for the Fund, based on a review of qualitative and quantitative information provided by BFA, including the additional information management provided at the request of the Independent Trustees. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Board also noted that the Board and BFA agreed to discuss potential enhancements and adjustments to the 15(c) process for the coming year. The Independent Trustees were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Contract for the Fund, the Board, including the Independent Trustees, considered the following factors, no one of which was controlling, and reached the following conclusions: Expenses and Performance of the Fund — The Board reviewed statistical information prepared by Broadridge Financial Solutions Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, waivers/reimbursements (if any), and underlying fund fees and expenses (if any) of the Fund in comparison with the same information for other exchange traded funds (including, where applicable, funds sponsored by an “at cost” service provider) and, in the limited instances where no comparable ETFs existed and the comparison group would BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT 165 Board Review and Approval of Investment Advisory Contract (Continued) iSHARES® TRUST not otherwise be reasonable in Broadridge’s judgment, pure index institutional mutual funds, objectively selected by Broadridge as comprising the Fund’s applicable peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of Broadridge’s proprietary ETF methodology used by Broadridge to determine the Fund’s Peer Group. The Board further noted that due to the limitations in providing comparable funds in the Peer Group, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Fund in all instances. The Board also noted that the investment advisory fee rate and overall expenses (net of waivers and reimbursements) for the Fund were lower than the median of the investment advisory fee rates and overall expenses (net of waivers and reimbursements) of the funds in its Peer Group, excluding iShares funds. In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as the Fund, Broadridge also provided, and the Board reviewed, a comparison of the Fund’s performance for the one-, three-, five-, ten-year, and since inception periods, as applicable, and for the “last quarter” period ended December 31, 2015, to that of such relevant comparison funds for the same periods. The Board noted that the Fund seeks to track its own underlying index and that, during the year, the Board received periodic reports on the Fund’s short- and longer-term performance in comparison with its underlying index. Such periodic comparative performance information, including additional detailed information on certain specific iShares funds requested by the Board, was also considered. The Board noted that the Fund generally performed in line with its underlying index over the relevant periods. Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and expense level and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Contract for the coming year. Nature, Extent and Quality of Services Provided by BFA — Based on management’s representations, including information about recent and proposed enhancements to the iShares business, including with respect to capital markets support and analysis, product design and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting the iShares funds and their shareholders. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the dayto-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 21-23, 2016 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that the Fund had met its investment objective consistently since its inception date. Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided by BFA to the Fund under the Advisory Contract supported the Board’s approval of the continuance of the Advisory Contract for the coming year. 166 2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS Board Review and Approval of Investment Advisory Contract (Continued) iSHARES® TRUST Costs of Services Provided to the Fund and Profits Realized by BFA and its Affiliates — The Board reviewed information about the profitability to BlackRock of the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and all other sources of revenue and expense to BFA and its affiliates from the Funds’ operations for the last calendar year. The Board reviewed BlackRock’s profitability methodology for the iShares funds, noting that the 15(c) Committee had focused on the methodology and profitability presentation during its meetings. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BTC from securities lending by the Fund. The Board also discussed BFA’s profit margin as reflected in the Fund’s profitability analysis and reviewed information regarding potential economies of scale (as discussed below). Based on this review, the Board concluded that the profits realized by BFA and its affiliates under the Advisory Contract and from other relationships between the Fund and BFA and/or its affiliates, if any, were within a reasonable range in light of the factors considered. Economies of Scale — The Board reviewed information regarding potential economies of scale or other efficiencies that may result from increases in the Fund’s assets, noting that the issue of economies of scale had been focused on extensively by the 15(c) Committee during its meetings and addressed by management. The Board and the 15(c) Committee reviewed information provided by BFA regarding scale benefits shared with the iShares funds through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board and the 15(c) Committee received information regarding BlackRock’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished, among other things, between fixed and variable costs, and explained how the level of fixed and variable costs, as well as the nature of such costs, may impact the existence or size of scale benefits. The Board noted that the Advisory Contract for the Fund already provided for breakpoints in the Fund’s investment advisory fee rate, and that, following negotiations, BFA and the Board had agreed to revise the Advisory Contract for the Fund to provide for additional breakpoints, as the assets of the Fund, on an aggregated basis with the assets of certain other iShares funds, increase. The Board noted that the revisions of the Advisory Contract to provide additional breakpoints had been subject to further negotiation after receipt of management’s proposal, and that at the request of the Board, management had modified its initial proposal, in a manner more favorable to the Fund, regarding adding additional breakpoints to the Fund. The Board noted that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding new or revised breakpoints in the future. Based on this review, as well as the other factors considered at the meeting, the Board, recognizing its responsibility to consider this issue periodically, determined to approve the continuance of the Advisory Contract for the coming year. Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates — The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (together, the “Other Accounts”), and acknowledged BFA’s assertion that the iShares funds are fundamentally different investment vehicles from the Other Accounts. The Board noted that BFA and its affiliates do manage Other Accounts with substantially the same investment objective and strategy as the Fund and that track the same index as the Fund. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the Fund, including in terms of the different and generally more extensive services provided to the Fund, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded exchange traded fund, as compared to the Other Accounts that are institutional clients in light of differing regulatory requirements and client-imposed mandates. The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund expenses BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT 167 Board Review and Approval of Investment Advisory Contract (Continued) iSHARES® TRUST borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Contract for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed. Other Benefits to BFA and/or its Affiliates — The Board reviewed the “fallout” benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, such as payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s profitability methodology), and payment of advisory fees and/or administration fees to BFA and BTC (or their affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services and/or administration services. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Fund. The Board further noted that any portfolio transactions on behalf of the Fund placed through a BFA affiliate or purchased from an underwriting syndicate in which a BFA affiliate participates, are reported to the Board pursuant to Rule 17e-1 or Rule 10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund’s shareholders and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Contract for the coming year. Based on the considerations described above, the Board determined that the Fund’s investment advisory fee rate under the Advisory Contract does not constitute a fee that is so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded that it is in the best interest of the Fund and its shareholders to approve the continuance of the Advisory Contract for the coming year. 168 2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS Supplemental Information (Unaudited) iSHARES® TRUST Section 19(a) Notices The amounts and sources of distributions reported are estimates and are provided pursuant to regulatory requirements and are not being provided for tax reporting purposes. The actual amounts and sources for tax reporting purposes will depend upon each Fund’s investment experience during the year and may be subject to changes based on the tax regulations. Shareholders will receive a Form 1099-DIV each calendar year that will inform them how to report these distributions for federal income tax purposes. Total Cumulative Distributions for the Fiscal Year iShares ETF Adaptive Currency Hedged MSCI EAFE Currency Hedged MSCI ACWI Currency Hedged MSCI ACWI ex U.S. Currency Hedged MSCI EAFE Currency Hedged MSCI EAFE Small-Cap MSCI ACWI MSCI ACWI ex U.S. MSCI EAFE MSCI EAFE Small-Cap a % Breakdown of the Total Cumulative Distributions for the Fiscal Year Net Realized Capital Gains Return of Capital Total Per Share — 0.326710 $0.003892 0.002843 $0.483119 0.938872 0.564052 0.687411 0.672190 0.236244 — 0.005599 0.521289 1.448831 1.035124 1.669682 1.101834 0.193272 — — — — — 0.006689 — 0.013500 — Net Investment Income $ 0.479227 0.609319 $ Net Investment Income Net Realized Capital Gains Return of Capital 1% 0a Total Per Share 99% 65 —% 35 100% 100 1.236242 0.929254 46 74 54 25 — 1 100 100 0.714561 1.455520 1.035124 1.683182 1.101834 73 100 100 99 100 27 — — — — — 0a — 1 — 100 100 100 100 100 Rounds to less than 1%. Premium/Discount Information The Premium/Discount Information section is intended to present information about the differences between the daily market price on secondary markets for shares of a fund and that fund’s NAV. NAV is the price at which a fund issues and redeems shares. It is calculated in accordance with the standard formula for valuing mutual fund shares. The “Market Price” of a fund generally is determined using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of such fund are listed for trading, as of the time that the fund’s NAV is calculated. A fund’s Market Price may be at, above or below its NAV. The NAV of a fund will fluctuate with changes in the fair value of its portfolio holdings. The Market Price of a fund will fluctuate in accordance with changes in its NAV, as well as market supply and demand. Premiums or discounts are the differences (expressed as a percentage) between the NAV and Market Price of a fund on a given day, generally at the time the NAV is calculated. A premium is the amount that a fund is trading above the reported NAV, expressed as a percentage of the NAV. A discount is the amount that a fund is trading below the reported NAV, expressed as a percentage of the NAV. The following information shows the frequency of distributions of premiums and discounts for each of the Funds. The information shown for each Fund is for five calendar years (or from the inception date of such Fund if less than five years) through the date of the most recent calendar quarter-end. The specific periods covered for each Fund is disclosed in the table for such Fund. SUPPLEMENTAL INFORMATION 169 Supplemental Information (Unaudited) (Continued) iSHARES® TRUST Each line in the table shows the number of trading days in which the Fund traded within the premium/discount range indicated. The number of trading days in each premium/discount range is also shown as a percentage of the total number of trading days in the period covered by each table. All data presented here represents past performance, which cannot be used to predict future results. iShares Adaptive Currency Hedged MSCI EAFE ETF Period Covered: January 5, 2016 through June 30, 2016 Number of Days Premium/Discount Range Greater than 2.0% and Less than 2.5% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Greater than 1.5% and Less than 2.0% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Greater than 1.0% and Less than 1.5% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Greater than 0.5% and Less than 1.0% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Between 0.5% and –0.5% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Less than –0.5% and Greater than –1.0% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Less than –1.0% and Greater than –1.5% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Less than –1.5% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Percentage of Total Days 1 2 1 20 63 24 9 4 0.81% 1.61 0.81 16.13 50.80 19.35 7.26 3.23 124 100.00% iShares Currency Hedged MSCI ACWI ETF Period Covered: June 29, 2015 through June 30, 2016 Number of Days Premium/Discount Range Greater than than 1.5% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Greater than 1.0% and Less than 1.5% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Greater than 0.5% and Less than 1.0% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Between 0.5% and –0.5% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Percentage of Total Days 7 1 1 246 2.75% 0.39 0.39 96.47 255 100.00% iShares Currency Hedged MSCI ACWI ex U.S. ETF Period Covered: June 29, 2015 through June 30, 2016 Number of Days Premium/Discount Range Greater than than 1.0% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Greater than 0.5% and Less than 1.0% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Between 0.5% and –0.5% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170 2016 iSHARES ANNUAL REPORT Percentage of Total Days 8 3 244 3.14% 1.18 95.68 255 100.00% TO SHAREHOLDERS Supplemental Information (Unaudited) (Continued) iSHARES® TRUST iShares Currency Hedged MSCI EAFE ETF Period Covered: January 31, 2014 through June 30, 2016 Number of Days Premium/Discount Range Greater than 0.5% and Less than 1.0% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Between 0.5% and –0.5% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Percentage of Total Days 1 608 0.16% 99.84 609 100.00% iShares Currency Hedged MSCI EAFE Small-Cap ETF Period Covered: June 29, 2015 through June 30, 2016 Number of Days Premium/Discount Range Between 0.5% and –0.5% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Percentage of Total Days 255 100.00% 255 100.00% iShares MSCI ACWI ETF Period Covered: January 1, 2011 through June 30, 2016 Premium/Discount Range Greater than 1.5% and Less than 2.0% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Greater than 1.0% and Less than 1.5% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Greater than 0.5% and Less than 1.0% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Between 0.5% and –0.5% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Less than –0.5% and Greater than –1.0% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Less than –1.0% and Greater than –1.5% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . SUPPLEMENTAL INFORMATION Number of Days Percentage of Total Days 1 3 69 1,267 38 5 0.07% 0.22 4.99 91.61 2.75 0.36 1,383 100.00% 171 Supplemental Information (Unaudited) (Continued) iSHARES® TRUST iShares MSCI ACWI ex U.S. ETF Period Covered: January 1, 2011 through June 30, 2016 Number of Days Premium/Discount Range Greater than 2.5% and Less than 3.0% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Greater than 2.0% and Less than 2.5% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Greater than 1.5% and Less than 2.0% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Greater than 1.0% and Less than 1.5% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Greater than 0.5% and Less than 1.0% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Between 0.5% and –0.5% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Less than –0.5% and Greater than –1.0% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Less than –1.0% and Greater than –1.5% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Less than –1.5% and Greater than –2.0% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Less than –2.0% and Greater than –2.5% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Less than –2.5% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Percentage of Total Days 1 1 4 47 236 943 109 31 8 2 1 0.07% 0.07 0.29 3.40 17.06 68.20 7.88 2.24 0.58 0.14 0.07 1,383 100.00% iShares MSCI EAFE ETF Period Covered: January 1, 2011 through June 30, 2016 Number of Days Premium/Discount Range Greater than 2.5% and Less than 3.0% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Greater than 2.0% and Less than 2.5% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Greater than 1.5% and Less than 2.0% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Greater than 1.0% and Less than 1.5% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Greater than 0.5% and Less than 1.0% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Between 0.5% and –0.5% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Less than –0.5% and Greater than –1.0% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Less than –1.0% and Greater than –1.5% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Less than –1.5% and Greater than –2.0% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Less than –2.0% and Greater than –2.5% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Less than –2.5% and Greater than –3.0% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Less than –3.0% and Greater than –3.5% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172 2016 iSHARES ANNUAL REPORT Percentage of Total Days 2 1 14 50 237 925 100 39 11 2 1 1 0.14% 0.07 1.01 3.62 17.14 66.89 7.23 2.82 0.80 0.14 0.07 0.07 1,383 100.00% TO SHAREHOLDERS Supplemental Information (Unaudited) (Continued) iSHARES® TRUST iShares MSCI EAFE Small-Cap ETF Period Covered: January 1, 2011 through June 30, 2016 Premium/Discount Range Greater than 2.5% and Less than 3.0% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Greater than 2.0% and Less than 2.5% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Greater than 1.5% and Less than 2.0% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Greater than 1.0% and Less than 1.5% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Greater than 0.5% and Less than 1.0% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Between 0.5% and –0.5% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Less than –0.5% and Greater than –1.0% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Less than –1.0% and Greater than –1.5% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Less than –1.5% and Greater than –2.0% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Less than –2.0% and Greater than –2.5% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Less than –2.5% and Greater than –3.0% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Less than –3.0% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Number of Days Percentage of Total Days 1 4 14 68 316 827 100 35 13 2 2 1 0.07% 0.29 1.01 4.92 22.85 59.81 7.23 2.53 0.94 0.14 0.14 0.07 1,383 100.00% Regulation under the Alternative Investment Fund Managers Directive (“AIFMD” or the “Directive”) The Directive imposes detailed and prescriptive obligations on fund managers established in the European Union (the “EU”). These do not currently apply to managers established outside of the EU, such as BFA. Rather, non-EU managers are only required to comply with certain disclosure, reporting and transparency obligations of the Directive if such managers market a fund to EU investors. BFA has registered the iShares MSCI ACWI ETF, iShares MSCI EAFE ETF and the iShares MSCI EAFE Small-Cap ETF (each a “Fund”, collectively the “Funds”) for marketing to investors in the United Kingdom, the Netherlands, Finland, Sweden, and Luxembourg. Report on Remuneration BFA is required under the Directive to make quantitative disclosures of remuneration. These disclosures are made in line with BlackRock’s interpretation of currently available regulatory guidance on quantitative remuneration disclosures. As market or regulatory practice develops BlackRock may consider it appropriate to make changes to the way in which quantitative remuneration disclosures are calculated. Where such changes are made, this may result in disclosures in relation to a fund not being comparable to the disclosures made in the prior year, or in relation to other BlackRock fund disclosures in that same year. Disclosures are provided in relation to (a) the staff of BFA; (b) staff who are senior management; and (c) staff who have the ability to materially affect the risk profile of the Funds. All individuals included in the aggregated figures disclosed are rewarded in line with BlackRock’s remuneration policy for their responsibilities across the relevant BlackRock business area. As all individuals have a number of areas of responsibilities, only the portion of remuneration for those individuals’ services attributable to the Funds is included in the aggregate figures disclosed. BlackRock has a clear and well defined pay-for-performance philosophy, and compensation programs which support that philosophy. For senior management, a significant percentage of variable remuneration is deferred over time. All employees are subject to a claw-back policy. SUPPLEMENTAL INFORMATION 173 Supplemental Information (Unaudited) (Continued) iSHARES® TRUST Compensation decisions for employees are made based on BlackRock’s full-year financial results and other non-financial goals and objectives. Alongside financial performance, individual compensation is also based on strategic and operating results and other considerations such as management and leadership capabilities. No set formulas are established and no fixed benchmarks are used in determining annual incentive awards. Bonus pools are reviewed by BlackRock’s independent compensation committee, taking into account both actual and projected financial information together with information provided by the Operational Risk and Regulatory Compliance departments in relation to any activities, incidents or events that warrant consideration in making compensation decisions. Functions such as Finance, Operational Risk, Legal & Compliance, and Human Resources each have their own organizational structures which are independent of the business units. Functional bonus pools are determined with reference to the performance of each individual function and the remuneration of the senior members of control functions is directly overseen by BlackRock’s independent compensation committee. No individual is involved in setting his or her own remuneration. Members of staff and senior management of BFA typically provide both AIFMD and non-AIFMD related services in respect of multiple funds, clients and functions of BFA and across the broader BlackRock group. Therefore, the figures disclosed are a sum of each individual’s portion of remuneration attributable to the Funds according to an objective apportionment methodology which acknowledges the multiple-service nature of BFA. Accordingly the figures are not representative of any individual’s actual remuneration or their remuneration structure. The amount of the total remuneration awarded by BFA to its staff which has been attributed to the iShares MSCI ACWI ETF in respect of BFA’s financial year ending December 31, 2015 is USD 1.02 million. This figure is comprised of fixed remuneration of USD 394.84 thousand and variable remuneration of USD 620.43 thousand. There were a total of 457 beneficiaries of the remuneration described above. The amount of the aggregate remuneration awarded by BFA, which has been attributed to the iShares MSCI ACWI ETF in respect of BFA’s financial year ending December 31, 2015, to its senior management was USD 120.66 thousand, and to members of its staff whose actions have a material impact on the risk profile of the Fund was USD 29.22 thousand. The amount of the total remuneration awarded by BFA to its staff which has been attributed to the iShares MSCI EAFE ETF in respect of BFA’s financial year ending December 31, 2015 is USD 9.92 million. This figure is comprised of fixed remuneration of USD 3.86 million and variable remuneration of USD 6.06 million. There were a total of 457 beneficiaries of the remuneration described above. The amount of the aggregate remuneration awarded by BFA, which has been attributed to the iShares MSCI EAFE ETF in respect of BFA’s financial year ending December 31, 2015, to its senior management was USD 1.18 million, and to members of its staff whose actions have a material impact on the risk profile of the Fund was USD 285.54 thousand. The amount of the total remuneration awarded by BFA to its staff which has been attributed to the iShares MSCI EAFE SmallCap ETF in respect of BFA’s financial year ending December 31, 2015 is USD 910.98 thousand. This figure is comprised of fixed remuneration of USD 354.28 thousand and variable remuneration of USD 556.70 thousand. There were a total of 457 beneficiaries of the remuneration described above. The amount of the aggregate remuneration awarded by BFA, which has been attributed to the iShares MSCI EAFE Small-Cap ETF in respect of BFA’s financial year ending December 31, 2015, to its senior management was USD 108.27 thousand, and to members of its staff whose actions have a material impact on the risk profile of the Fund was USD 26.22 thousand. 174 2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS Trustee and Officer Information iSHARES® TRUST The Board of Trustees has responsibility for the overall management and operations of the Funds, including general supervision of the duties performed by BFA and other service providers. Each Trustee serves until he or she resigns, is removed, dies, retires or becomes incapacitated. Each officer shall hold office until his or her successor is elected and qualifies or until his or her death, or his or her resignation or removal. Trustees who are not “interested persons” (as defined in the 1940 Act) of the Trust are referred to as independent trustees (“Independent Trustees”). The registered investment companies advised by BFA or its affiliates (the “BlackRock-advised Funds”) are organized into one complex of closed-end funds, two complexes of open-end funds and one complex of exchange-traded funds (“Exchange-Traded Fund Complex”) (each, a “BlackRock Fund Complex”). Each Fund is included in the BlackRock Fund Complex referred to as the Exchange-Traded Fund Complex. Each Trustee also serves as a Director of iShares, Inc. and a Trustee of iShares U.S. ETF Trust and, as a result, oversees a total of 342 funds (as of July 31, 2016) within the Exchange-Traded Fund Complex. With the exception of Robert S. Kapito, Mark Wiedman and Benjamin Archibald, the address of each Trustee and officer is c/o BlackRock, Inc., 400 Howard Street, San Francisco, CA 94105. The address of Mr. Kapito, Mr. Wiedman and Mr. Archibald is c/o BlackRock, Inc., Park Avenue Plaza, 55 East 52nd Street, New York, NY 10055. The Board has designated Cecilia H. Herbert as its Independent Board Chair. Additional information about the Funds’ Trustees and officers may be found in the Funds’ combined Statement of Additional Information, which is available without charge, upon request, by calling toll-free 1-800-iShares (1-800-474-2737). Interested Trustees Name (Age) Position(s) Principal Occupation(s) During the Past 5 Years Other Directorships Held by Trustee During the Past 5 Years Robert S. Kapitoa (59) Trustee (since 2009). President and Director, BlackRock, Inc. (since 2006); Vice Chairman of BlackRock, Inc. and Head of BlackRock, Inc.’s Portfolio Management Group (since its formation in 1998) and BlackRock, Inc.’s predecessor entities (since 1988); Trustee, University of Pennsylvania (since 2009); President of Board of Directors, Hope & Heroes Children’s Cancer Fund (since 2002); President of the Board of Directors, Periwinkle Theatre for Youth (since 1983). Director of iShares, Inc. (since 2009); Trustee of iShares U.S. ETF Trust (since 2011). Mark Wiedmanb (45) Trustee (since 2013). Managing Director, BlackRock, Inc. (since 2007); Global Head of iShares (since 2011); Head of Corporate Strategy, BlackRock, Inc. (2009-2011). Director of iShares, Inc. (since 2013); Trustee of iShares U.S. ETF Trust (since 2013); Director of PennyMac Financial Services, Inc. (since 2008). a b Robert S. Kapito is deemed to be an “interested person” (as defined in the 1940 Act) of the Trust due to his affiliations with BlackRock, Inc. Mark Wiedman is deemed to be an “interested person” (as defined in the 1940 Act) of the Trust due to his affiliations with BlackRock, Inc. and its affiliates. TRUSTEE AND OFFICER INFORMATION 175 Trustee and Officer Information (Continued) iSHARES® TRUST Independent Trusteesc Name (Age) Position(s) Principal Occupation(s) During the Past 5 Years Other Directorships Held by Trustee During the Past 5 Years Cecilia H. Herbert (67) Trustee (since 2005); Independent Board Chair (since 2016); Nominating and Governance Committee Chair (since 2016). Director (1998-2013) and President (2007-2011) of the Board of Directors, Catholic Charities CYO; Trustee (2002-2011) and Chair of the Finance and Investment Committee (2006-2010) of the Thacher School; Member (since 1992) and Chair (1994-2005) of the Investment Committee, Archdiocese of San Francisco; Trustee and Member of the Investment Committee, WNET, the New York public media company (since 2011). Director of iShares, Inc. (since 2005); Trustee of iShares U.S. ETF Trust (since 2011); Independent Board Chair of iShares, Inc. and iShares U.S. ETF Trust (since 2016); Director of Forward Funds (23 portfolios) (since 2009); Director of Salient MF Trust (4 portfolios) (since 2015). Jane D. Carlin (60) Trustee (since 2015); Risk Committee Chair (since 2016). Managing Director and Global Head of Financial Holding Company Governance & Assurance and the Global Head of Operational Risk Management of Morgan Stanley (2006-2012). Director of iShares, Inc. (since 2015); Trustee of iShares U.S. ETF Trust (since 2015); Director of PHH Corporation (mortgage solutions) (since 2012). Charles A. Hurty (72) Trustee (since 2005); Audit Committee Chair (since 2006). Retired; Partner, KPMG LLP (1968-2001). Director of iShares, Inc. (since 2005); Trustee of iShares U.S. ETF Trust (since 2011); Director of GMAM Absolute Return Strategy Fund (1 portfolio) (since 2002); Director of SkyBridge Alternative Investments Multi-Adviser Hedge Fund Portfolios LLC (2 portfolios) (since 2002). John E. Kerrigan (61) Trustee (since 2005); Securities Lending Committee Chair (since 2016). Chief Investment Officer, Santa Clara University (since 2002). Director of iShares, Inc. (since 2005); Trustee of iShares U.S. ETF Trust (since 2011). John E. Martinez (55) Trustee (since 2003); Fixed Income Plus Committee Chair (since 2016). Director of FirstREX Agreement Corp. (formerly EquityRock, Inc.) (since 2005). Director of iShares, Inc. (since 2003); Trustee of iShares U.S. ETF Trust (since 2011). 176 2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS Trustee and Officer Information (Continued) iSHARES® TRUST Independent Trusteesc (Continued) Name (Age) Madhav V. Rajan (51) c Position(s) Trustee (since 2011); Equity Plus Committee Chair and 15(c) Committee Chair (since 2016). Principal Occupation(s) During the Past 5 Years Robert K. Jaedicke Professor of Accounting and Senior Associate Dean for Academic Affairs and Head of MBA Program, Stanford University Graduate School of Business (since 2001); Professor of Law (by courtesy), Stanford Law School (since 2005); Visiting Professor, University of Chicago (2007-2008). Other Directorships Held by Trustee During the Past 5 Years Director of iShares, Inc. (since 2011); Trustee of iShares U.S. ETF Trust (since 2011); Director, Cavium, Inc. (since 2013). Robert H. Silver served as an Independent Trustee until March 31, 2016. TRUSTEE AND OFFICER INFORMATION 177 Trustee and Officer Information (Continued) iSHARES® TRUST Officers Name (Age) Principal Occupation(s) During the Past 5 Years Position(s) Manish Mehta (45) President (since 2013). Managing Director, BlackRock, Inc. (since 2009); Chief Operating Officer for iShares (since 2009); Head of Strategy and Corporate Development, BGI (2005-2009); Chief of Staff to the CEO, BGI (2005-2009). Jack Gee (56) Treasurer and Chief Financial Officer (since 2008). Managing Director, BlackRock, Inc. (since 2009); Senior Director of Fund Administration of Intermediary Investor Business, BGI (2009); Director of Fund Administration of Intermediary Investor Business, BGI (2004-2009). Benjamin Archibald (41) Secretary (since 2015). Managing Director, BlackRock, Inc. (since 2014); Director, BlackRock, Inc. (2010-2013); Secretary of the BlackRock-advised Mutual Funds (since 2012). Charles Park (48) Chief Compliance Officer (since 2006). Chief Compliance Officer of BlackRock Advisors, LLC and the BlackRock-advised Funds in the Equity-Bond Complex, the Equity-Liquidity Complex and the Closed-End Complex (since 2014); Chief Compliance Officer, BFA (since 2006). Scott Radell (47) Executive Vice President (since 2012). Managing Director, BlackRock, Inc. (since 2009); Head of Portfolio Solutions, BlackRock, Inc. (since 2009); Head of Portfolio Solutions, BGI (2007-2009); Credit Portfolio Manager, BGI (2005-2007); Credit Research Analyst, BGI (2003-2005). Amy Schioldager (53) Executive Vice President (since 2007). Senior Managing Director, BlackRock, Inc. (since 2009); Global Head of Index Equity, BGI (2008-2009); Global Head of U.S. Indexing, BGI (2006-2008); Head of Domestic Equity Portfolio Management, BGI (2001-2006). 178 2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS For more information visit www.iShares.com or call 1-800-iShares (1-800-474-2737) This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current prospectus. Investing involves risk, including possible loss of principal. The iShares Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”). The iShares Funds are not sponsored, endorsed, issued, sold or promoted by MSCI Inc., nor does this company make any representation regarding the advisability of investing in the iShares Funds. BlackRock is not affiliated with the company listed above. A description of the policies that the Funds use to determine how to vote proxies relating to portfolio securities and information about how the Funds voted proxies relating to portfolio securities during the most recent twelve-month period ending June 30 is available without charge, upon request, by calling tollfree 1-800-474-2737; on the Funds’ website at www.iShares.com; and on the U.S. Securities and Exchange Commission (SEC) website at www.sec.gov. iS-AR-703-0716 The Funds file their complete schedules of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the SEC’s website or may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The Funds also disclose their complete schedules of portfolio holdings on a daily basis on the Funds’ website. Certain financial information required by regulations or listing exchange rules in jurisdictions outside the U.S. in which iShares Funds are cross-listed may be publicly filed in those jurisdictions. This information is available upon request by calling 1-800-474-2737. ©2016 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.
