2017 ANNUAL REPORT - Exchange-Traded Funds … Japanese bond market performance was hindered by a...

OCTOBER 31, 2017

2017 ANNUAL REPORT

iShares Trust

� iShares J.P. Morgan USD Emerging Markets Bond ETF | EMB | NASDAQ

Table of Contents

Management’s Discussion of Fund Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

About Fund Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Shareholder Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Schedule of Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Financial Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Notes to Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

Report of Independent Registered Public Accounting Firm . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

Tax Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

Board Review and Approval of Investment Advisory Contract . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

Supplemental Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

Trustee and Officer Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

THIS PAGE INTENTIONALLY LEFT BLANK.

Management’s Discussion of Fund PerformanceiSHARES® J.P. MORGAN USD EMERGING MARKETS BOND ETF

GLOBAL BOND MARKET OVERVIEW

Global investment-grade bonds posted modestly positive returns for the 12 months ended October 31, 2017 (“reporting period”),

reflecting improving economic growth and rising interest rates in virtually all major bond markets. The Bloomberg Barclays Global

Aggregate Index, a broad measure of global bond market performance, returned 1.18% in U.S. dollar terms for the reporting

period.

Regionally, European bond markets posted the strongest returns among developed markets for the reporting period. European

corporate bonds performed particularly well, benefiting from better economic conditions and stronger corporate earnings

throughout Europe. The Eurozone economy expanded for the 12 months ended September 2017, its fastest growth rate in more

than six years, and the jobless rate in September 2017 was the lowest since February 2009. The European Central Bank (“ECB”)

elected to keep interest rates at historically low levels throughout the reporting period, though the ECB announced late in the

reporting period that it plans to taper its quantitative easing program beginning in 2018. Currency fluctuations also contributed

meaningfully to European bond performance in U.S. dollar terms as the euro appreciated by approximately 6% against the

U.S. dollar during the reporting period.

In the U.S. bond market, economically sensitive corporate bonds performed well during the reporting period, benefiting from

improving growth, healthy corporate profits, and strong investor demand for their comparatively higher yields. In contrast, U.S.

Treasury securities declined and were the weakest performers among the broad market segments. The poor performance of U.S.

Treasury bonds reflected concerns about the expected effect of the new presidential administration’s proposed tax cuts and fiscal

stimulus policies. In addition, the U.S. Federal Reserve Bank (“Fed”) increased short-term interest rates by a quarter percentage

point three times during the reporting period, from 0.5% to 1.25%, which contributed to higher short-term U.S. Treasury yields.

The Fed also started reducing the amount of U.S. Treasury bonds and mortgage-backed securities on its balance sheet in

October 2017. These actions were made possible by improvement in the U.S. economy, led by strength in the job market, where

the unemployment rate reached its lowest level in more than 16 years.

Bond markets in the Asia-Pacific region rose modestly in U.S. dollar terms for the reporting period, reflecting modest economic

growth, low inflation, and accommodative monetary policies in many countries. In fundamental terms, however, conditions were

generally supportive of Japanese bond performance, as Japanese economic growth was 1.4% for the year ended in June, while

consumer prices rose just 0.7% for the 12 months ended in September 2017. In that environment, the Bank of Japan maintained

its economic stimulus measures, targeting negative short-term interest rates and zero percent yields on longer-term bonds.

However, Japanese bond market performance was hindered by a decline in the Japanese yen, which depreciated by

approximately 8% against the U.S. dollar.

The performance of inflation-linked securities during the reporting period was also noteworthy. U.S. Treasury inflation-indexed

bonds declined as interest rates rose and inflation was generally modest — the U.S. consumer price index rose 2.2% for the

12 months ended September 2017, well below the long-term historical average. In contrast, European government inflation-linked

bonds were among the strongest performers in global bond markets for the reporting period. This reflected a surge in U.K.

inflation, where consumer prices rose at their fastest rate in more than five years.

M A N A G E M E N T ’ S D I S C U S S I O N O F F U N D P E R F O R M A N C E 5

Management’s Discussion of Fund PerformanceiSHARES® J.P. MORGAN USD EMERGING MARKETS BOND ETFPerformance as of October 31, 2017

Average Annual Total Returns Cumulative Total Returns

NAV MARKET INDEX NAV MARKET INDEX

1 Year 5.74% 6.05% 6.26% 5.74% 6.05% 6.26%

5 Years 3.85% 3.76% 4.58% 20.77% 20.28% 25.08%

Since Inception 6.60% 6.60% 7.37% 87.97% 88.01% 101.79%

GROWTH OF $10 ,000 INVESTMENT

(S INCE INCEPTION AT NET ASSET VALUE)

$20,179$18,797

IndexFund

Oct 17Oct 12 Oct 14Oct 10Oct 09 Oct 13Oct 08 Oct 11 Oct 15 Oct 16$5,000

$10,000

$15,000

$20,000

$25,000

The inception date of the Fund was 12/17/07. The first day of secondary market trading was 12/19/07.

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 8 for more information.

Shareholder Expenses

Actual Hypothetical 5% Return

BeginningAccount Value

(5/1/17)

EndingAccount Value

(10/31/17)Expenses Paid

During Period a

BeginningAccount Value

(5/1/17)

EndingAccount Value

(10/31/17)Expenses Paid

During Period aAnnualized

Expense Ratio

$ 1,000.00 $ 1,034.90 $ 2.05 $ 1,000.00 $ 1,023.20 $ 2.04 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, multipliedby the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 8 for moreinformation.

6 2 0 1 7 i S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S

Management’s Discussion of Fund Performance (Continued)

iSHARES® J.P. MORGAN USD EMERGING MARKETS BOND ETF

The iShares J.P. Morgan USD Emerging Markets Bond ETF (the “Fund”) seeks to track the investment results of an index

composed of U.S. dollar-denominated, emerging market bonds, as represented by the J.P. Morgan EMBI® Global Core 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 October 31, 2017, the total return for the Fund was 5.74%, net of

fees, while the total return for the Index was 6.26%.

The Index’s Latin American bonds made the most significant contribution to its return for the reporting period, led by Argentina,

Mexico, and Brazil. Argentina’s president, Mauricio Macri, made strides in his dual pledge to reduce inflation and stimulate

economic growth during the reporting period. Having emerged from default in the previous reporting period, Argentina issued a

100-year bond yielding 7.9%, which was met with strong demand in an environment of low global bond yields. In Mexico, the U.S.

presidential election and Donald Trump’s proposed trade policies initially drove Mexican bond yields up and the Mexican peso

down, but slow progress and softer trade rhetoric alleviated concerns and helped Mexican bonds rebound for the reporting period.

Brazilian bonds benefited from a declining inflation rate and the anticipation of future central bank interest rate cuts, despite

concerns surrounding political crises.

European bonds also contributed meaningfully to the Index’s performance for the reporting period, led by Ukraine. The country’s

first sovereign bond issue since restructuring its debt in 2015 attracted strong demand, benefiting from continued investor appetite

for yield. Russian Federation bonds also added to the Index’s return.

Bonds from the Middle East and Asia were noteworthy contributors to the Index’s performance for the reporting period as well,

driven by Kazakhstan and Indonesia. Africa’s contribution to the Index’s return was led by Zambia.

In terms of maturity, the longest-term bonds made the most significant contribution to the Index’s return for the reporting period,

reflecting investors’ search for higher yields in a low-yield environment. Declining interest rates in selected emerging markets also

contributed to the performance of longer-term bonds.

ALLOCATION BY CREDIT QUALITY

As of 10/31/17

Moody’s Credit Rating 1

Percentage of

Total Investments 2

Aa 0.66%

A 16.29

Baa 33.73

Ba 21.74

B 15.38

Caa 4.31

Not Rated 7.89

TOTAL 100.00%

TEN LARGEST COUNTRIES

As of 10/31/17

Country

Percentage of

Total Investments 2

Mexico 6.17%

Indonesia 4.96

Russia 4.36

Turkey 4.34

China 4.00

Argentina 3.99

Philippines 3.98

Brazil 3.87

Colombia 3.54

Peru 3.28

TOTAL 42.49%

1 Credit quality ratings shown reflect the ratings assigned by Moody’s Investors Service (“Moody’s”), a widely used independent, nationally recognized statisticalrating organization. Moody’s credit ratings are opinions of the credit quality of individual obligations or of an issuer’s general creditworthiness. Investment graderatings are credit ratings of Baa or higher. Below investment grade ratings are credit ratings of Ba or lower. Unrated investments do not necessarily indicate lowcredit quality. Credit quality ratings are subject to change.

2 Excludes money market funds.

M A N A G E M E N T ’ S D I S C U S S I O N O F F U N D P E R F O R M A N C E 7

About Fund PerformancePast 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 ExpensesAs a shareholder of the 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 May 1, 2017 and held through October 31, 2017, is intended to help you

understand your ongoing costs (in dollars and cents) of investing in the Fund and to compare these costs with the ongoing costs

of investing in other funds.

Actual Expenses — The table provides information about actual account values and actual expenses. Annualized expense

ratios reflect contractual and voluntary fee waivers, if any. To estimate the expenses that you paid on your account over the

period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply

the result by the number under the heading entitled “Expenses Paid During Period.”

Hypothetical Example for Comparison Purposes — The table also provides information about hypothetical account values and

hypothetical expenses based on the 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.


Schedule of InvestmentsiSHARES® J.P. MORGAN USD EMERGING MARKETS BOND ETFOctober 31, 2017

SecurityPrincipal

(000s) Value

CORPORATE BONDS & NOTESa — 16.22%

AZERBAIJAN — 0.52%

Southern Gas Corridor CJSC6.88%, 03/24/26b $ 54,900 $ 62,075,430

62,075,430

CHILE — 1.05%

Corp. Nacional del Cobre de Chile3.63%, 08/01/27

(Call 05/01/27)b 33,500 33,709,8754.50%, 09/16/25b 44,034 47,369,5764.50%, 08/01/47

(Call 02/01/47)b 41,700 43,972,163

125,051,614

CHINA — 3.47%

Amber Circle Funding Ltd.3.25%, 12/04/22b 10,659 10,838,807

China Development Bank2.13%, 06/01/21b 9,644 9,468,5432.50%, 10/09/20b 24,239 24,182,2492.63%, 01/24/22b 13,850 13,804,295

China Development Bank Corp./Hong KongFRN, (3 mo. LIBOR US + 0.70%)

2.02%, 03/06/22b,c 13,800 13,801,670China Great Wall International

Holdings III Ltd.3.13%, 08/31/22b 8,800 8,795,778

CNAC HK Finbridge Co. Ltd.3.50%, 07/19/22b 18,000 18,088,5514.13%, 07/19/27b 14,500 14,806,871

CNOOC Curtis Funding No. 1Pty Ltd.

4.50%, 10/03/23b 13,671 14,797,860Sinochem Overseas Capital

Co. Ltd.4.50%, 11/12/20b 15,293 16,172,347

Sinopec Group OverseasDevelopment 2012 Ltd.

3.90%, 05/17/22b 16,002 16,761,0234.88%, 05/17/42b 12,609 14,289,376

Sinopec Group OverseasDevelopment 2013 Ltd.

4.38%, 10/17/23b 21,025 22,697,644

SecurityPrincipal

(000s) Value

Sinopec Group Overseas

Development 2014 Ltd.

4.38%, 04/10/24b $ 21,311 $ 22,938,052



2.50%, 04/28/20b 32,482 32,531,808

3.25%, 04/28/25b 23,447 23,511,737



2.00%, 09/29/21b 15,650 15,274,068



2.38%, 04/12/20b 6,300 6,292,821

3.00%, 04/12/22b 10,600 10,696,407

3.63%, 04/12/27b 18,700 19,175,167

State Grid Overseas

Investment 2013 Ltd.

3.13%, 05/22/23b 10,885 11,009,274

State Grid Overseas


4.13%, 05/07/24b 18,984 20,251,448

State Grid Overseas


2.75%, 05/04/22b 9,700 9,730,064

3.50%, 05/04/27b 32,428 33,154,428

Three Gorges Finance I

Cayman Islands Ltd.

3.15%, 06/02/26b 11,234 11,145,083

414,215,371

INDONESIA — 1.10%

Majapahit Holding BV

7.75%, 01/20/20b 4,474 4,944,486

Pelabuhan Indonesia II PT

4.25%, 05/05/25b 9,900 10,257,737

Pertamina Persero PT

4.30%, 05/20/23b 12,642 13,353,112

4.88%, 05/03/22b 9,844 10,569,995

5.25%, 05/23/21b 7,927 8,549,190

5.63%, 05/20/43b 13,021 14,255,000

6.00%, 05/03/42b 13,630 15,597,354

6.45%, 05/30/44b 13,555 16,361,292

Perusahaan Listrik Negara PT

4.13%, 05/15/27b 16,050 16,175,342

S C H E D U L E O F I N V E S T M E N T S 9

Schedule of Investments (Continued)

iSHARES® J.P. MORGAN USD EMERGING MARKETS BOND ETFOctober 31, 2017

SecurityPrincipal

(000s) Value

5.25%, 10/24/42b $ 10,960 $ 11,526,632

5.50%, 11/22/21b 8,880 9,701,400

131,291,540

KAZAKHSTAN — 1.58%

Development Bank of

Kazakhstan JSC

4.13%, 12/10/22b 29,637 30,118,601

Kazakhstan Temir Zholy

Finance BV

6.95%, 07/10/42b 28,055 31,421,600

KazMunayGas National Co. JSC

4.75%, 04/19/27b 22,600 23,114,750

5.75%, 04/19/47b 34,976 35,217,921

6.38%, 04/09/21b 29,066 31,782,218

7.00%, 05/05/20b 33,137 36,119,330

187,774,420

MALAYSIA — 1.31%

Petronas Capital Ltd.

3.50%, 03/18/25b 30,454 31,516,997

4.50%, 03/18/45b 41,711 46,510,143

7.88%, 05/22/22b 34,283 41,936,783

Petronas Global Sukuk Ltd.

2.71%, 03/18/20b 35,995 36,264,962

156,228,885

MEXICO — 3.52%

Banco Nacional de Comercio

Exterior SNC/Cayman Islands

4.38%, 10/14/25b 9,524 9,857,340

Comision Federal de Electricidad

4.75%, 02/23/27b 7,800 8,170,500

4.88%, 05/26/21b 6,786 7,193,160

4.88%, 01/15/24b 9,600 10,260,000

Mexico City Airport Trust

3.88%, 04/30/28b 200 195,868

3.88%, 04/30/28

(Call 01/30/28)d 4,805 4,705,716

4.25%, 10/31/26

(Call 07/31/26)b 8,600 8,772,000

5.50%, 10/31/46

(Call 04/30/46)b 8,250 8,167,500

5.50%, 07/31/47b 5,700 5,652,234

5.50%, 07/31/47

(Call 01/31/47)d 14,275 14,155,325

SecurityPrincipal

(000s) Value

Petroleos Mexicanos

3.50%, 07/23/20 $ 8,911 $ 9,061,596

3.50%, 01/30/23 15,637 15,266,403

4.25%, 01/15/25 9,018 8,969,528

4.50%, 01/23/26 15,016 14,828,300

4.63%, 09/21/23 16,618 17,000,214

4.88%, 01/24/22 13,101 13,625,040

4.88%, 01/18/24 14,609 14,969,842

5.38%, 03/13/22b 5,568 5,907,091

5.50%, 01/21/21 15,691 16,671,688

5.50%, 06/27/44 18,770 16,909,893

5.63%, 01/23/46 22,016 19,960,806

6.00%, 03/05/20 5,100 5,439,150

6.38%, 02/04/21 8,529 9,279,381

6.38%, 01/23/45 19,519 19,418,282

6.50%, 03/13/27b 34,432 37,553,261

6.50%, 06/02/41 20,959 21,220,988

6.63%, 06/15/35 18,645 19,664,882

6.75%, 09/21/47 41,998 43,287,339

6.88%, 08/04/26 24,551 27,583,048

FRN, (3 mo. LIBOR US + 3.650%)

4.97%, 03/11/22b,c 5,540 6,038,600

419,784,975

OMAN — 0.70%

Lamar Funding Ltd.

3.96%, 05/07/25b 26,871 25,157,974

Oman Sovereign Sukuk SAOC

4.40%, 06/01/24b 58,027 58,058,037

83,216,011

PERU — 0.45%

Petroleos del Peru SA

4.75%, 06/19/32b 21,200 21,687,947

5.63%, 06/19/47b 30,770 32,380,723

54,068,670

PHILIPPINES — 0.23%

Power Sector Assets & Liabilities

Management Corp.

7.39%, 12/02/24b 21,567 27,703,027

27,703,027

RUSSIA — 0.68%

Russian Railways via RZD

Capital PLC

5.70%, 04/05/22b 16,699 18,118,415




SecurityPrincipal

(000s) Value

Vnesheconombank Via VEB

Finance PLC

5.94%, 11/21/23b $ 18,800 $ 20,374,500

6.03%, 07/05/22b 9,700 10,561,360

6.80%, 11/22/25b 13,558 15,388,330

6.90%, 07/09/20b 14,878 16,105,435

80,548,040

SOUTH AFRICA — 0.85%

Eskom Holdings SOC Ltd.

5.75%, 01/26/21b 37,469 37,843,690

6.75%, 08/06/23b 15,193 15,534,843

7.13%, 02/11/25b 26,982 27,622,822

Transnet SOC Ltd.

4.00%, 07/26/22b 21,291 20,780,016

101,781,371

VENEZUELA — 0.76%

Petroleos de Venezuela SA

5.38%, 04/12/27b 34,276 9,820,131

5.50%, 04/12/37b 14,173 4,074,738

6.00%, 05/16/24b 35,646 10,069,932

6.00%, 11/15/26b 45,819 12,600,225

8.50%, 10/27/20b 23,804 19,674,213

9.00%, 11/17/21b 23,986 10,523,857

9.75%, 05/17/35b 28,988 10,435,764

12.75%, 02/17/22b 30,902 13,936,802

91,135,662

TOTAL CORPORATE BONDS & NOTES

(Cost: $1,943,051,756) 1,934,875,016

FOREIGN GOVERNMENT OBLIGATIONSa — 81.83%

ANGOLA — 0.37%

Angolan Government

International Bond

9.50%, 11/12/25b 41,022 44,611,425

44,611,425

ARGENTINA — 3.91%

Argentine Republic Government

International Bond

2.50%, 12/31/38e 61,497 44,124,417

5.63%, 01/26/22 36,816 38,656,800

6.63%, 07/06/28 12,508 13,277,242

6.88%, 04/22/21 58,486 63,837,469

SecurityPrincipal

(000s) Value

6.88%, 01/26/27 $ 41,647 $ 45,416,053

7.13%, 07/06/36 17,497 18,818,023

7.13%, 06/28/17b 36,695 37,634,720

7.50%, 04/22/26 75,069 84,827,970

7.63%, 04/22/46 31,654 35,499,961

8.28%, 12/31/33 20,265 23,228,822

8.28%, 12/31/33 52,393 61,089,774

466,411,251

AZERBAIJAN — 0.74%

Republic of Azerbaijan

International Bond

3.50%, 09/01/32b 25,200 21,737,835

4.75%, 03/18/24b 37,944 38,987,460

State Oil Co. of the

Azerbaijan Republic

4.75%, 03/13/23b 27,399 27,494,760

88,220,055

BOLIVIA — 0.23%

Bolivian Government

International Bond

4.50%, 03/20/28b 27,913 27,075,610

27,075,610

BRAZIL — 3.80%

Banco Nacional de

Desenvolvimento Economico

e Social

4.75%, 05/09/24b 13,728 13,879,982

5.75%, 09/26/23b 15,847 17,134,569

Brazil Minas SPE via State of

Minas Gerais

5.33%, 02/15/28b 17,681 17,946,215

Brazilian Government

International Bond

2.63%, 01/05/23 32,159 31,113,833

4.25%, 01/07/25 58,230 59,249,025

4.63%, 01/13/28

(Call 10/13/27) 15,100 15,002,510

4.88%, 01/22/21 39,890 42,632,437

5.00%, 01/27/45 44,849 41,731,995

5.63%, 01/07/41 41,271 41,951,971

5.63%, 02/21/47 16,674 16,957,458

6.00%, 04/07/26 41,688 46,325,790

7.13%, 01/20/37 32,885 39,297,575




SecurityPrincipal

(000s) Value

8.25%, 01/20/34 $ 21,026 $ 27,412,648

8.88%, 04/15/24 14,781 18,919,680

10.13%, 05/15/27 16,270 23,469,475

453,025,163

CHILE — 0.65%

Chile Government

International Bond

3.13%, 01/21/26 33,427 34,262,675

3.86%, 06/21/47 42,800 43,444,095

77,706,770

CHINA — 0.45%

Export-Import Bank of China (The)

2.00%, 04/26/21b 10,402 10,188,338

2.63%, 03/14/22b 17,250 17,207,462

2.88%, 04/26/26b 11,778 11,541,560

3.63%, 07/31/24b 14,237 14,794,322

53,731,682

COLOMBIA — 3.47%

Colombia Government

International Bond

2.63%, 03/15/23

(Call 12/15/22) 17,930 17,580,365

3.88%, 04/25/27

(Call 01/25/27) 49,061 49,478,019

4.00%, 02/26/24

(Call 11/26/23) 38,933 40,490,320

4.38%, 07/12/21 29,938 31,734,280

4.50%, 01/28/26

(Call 10/28/25) 26,940 28,664,160

5.00%, 06/15/45

(Call 12/15/44) 71,702 73,781,358

5.63%, 02/26/44

(Call 08/26/43) 44,811 49,964,265

6.13%, 01/18/41 44,689 52,576,608

7.38%, 09/18/37 31,843 41,992,956

8.13%, 05/21/24 21,560 27,435,100

413,697,431

COSTA RICA — 0.66%

Costa Rica Government

International Bond

4.25%, 01/26/23b 24,794 24,453,083

7.00%, 04/04/44b 27,430 28,561,487

SecurityPrincipal

(000s) Value

7.16%, 03/12/45b $ 24,660 $ 26,201,250

79,215,820

CROATIA — 1.55%

Croatia Government

International Bond

5.50%, 04/04/23b 40,767 44,996,576

6.00%, 01/26/24b 49,202 55,967,275

6.38%, 03/24/21b 42,719 47,097,697

6.63%, 07/14/20b 600 656,250

6.63%, 07/14/20b 33,502 36,642,813

185,360,611

DOMINICAN REPUBLIC — 2.71%

Dominican Republic

International Bond

5.50%, 01/27/25b 37,938 40,119,435

5.88%, 04/18/24b 28,678 31,187,325

5.95%, 01/25/27b 43,525 46,789,375

6.85%, 01/27/45b 57,575 64,052,187

6.88%, 01/29/26b 41,980 47,962,150

7.45%, 04/30/44b 41,268 48,954,165

7.50%, 05/06/21b 39,600 43,708,500

322,773,137

ECUADOR — 2.32%

Ecuador Government

International Bond

7.95%, 06/20/24b 49,884 50,320,485

8.75%, 06/02/23b 27,520 28,905,270

8.88%, 10/23/27d 10,130 10,342,988

9.63%, 06/02/27b 32,700 35,069,164

9.65%, 12/13/26b 46,787 50,412,993

10.50%, 03/24/20b 37,572 40,765,620

10.75%, 03/28/22b 53,414 60,424,587

276,241,107

EGYPT — 2.31%

Egypt Government

International Bond

5.75%, 04/29/20b 32,489 33,707,337

5.88%, 06/11/25b 39,263 40,097,339

6.13%, 01/31/22b 56,545 59,018,844

7.50%, 01/31/27b 56,905 62,951,156

8.50%, 01/31/47b 71,177 80,341,039

276,115,715




SecurityPrincipal

(000s) Value

EL SALVADOR — 0.25%

El Salvador Government

International Bond

7.65%, 06/15/35b $ 28,932 $ 30,089,280

30,089,280

ETHIOPIA — 0.22%

Ethiopia International Bond

6.63%, 12/11/24b 25,012 25,762,360

25,762,360

GABON — 0.32%

Gabon Government

International Bond

6.38%, 12/12/24b 39,341 38,505,004

38,505,004

GHANA — 0.47%

Ghana Government

International Bond

7.88%, 08/07/23b 26,638 28,769,132

8.13%, 01/18/26b 25,012 27,106,755

55,875,887

HUNGARY — 3.12%

Hungary Government

International Bond

5.38%, 02/21/23 55,506 62,097,337

5.38%, 03/25/24 44,050 50,051,813

5.75%, 11/22/23 59,620 68,563,000

6.25%, 01/29/20 50,665 54,908,194

6.38%, 03/29/21 73,322 81,937,335

7.63%, 03/29/41 35,476 54,633,040

372,190,719

INDIA — 0.24%

Export-Import Bank of India

3.38%, 08/05/26b 28,630 28,319,814

28,319,814

INDONESIA — 3.76%

Indonesia Government

International Bond

3.38%, 04/15/23b 16,165 16,407,475

3.75%, 04/25/22b 17,423 18,073,401

3.85%, 07/18/27b 8,200 8,445,531

4.13%, 01/15/25b 21,444 22,432,783

4.35%, 01/08/27b 20,239 21,438,566

SecurityPrincipal

(000s) Value

4.63%, 04/15/43b $ 10,812 $ 11,194,419

4.75%, 01/08/26b 20,319 22,107,275

4.75%, 07/18/47b 12,300 13,004,203

4.88%, 05/05/21b 4,990 5,360,557

4.88%, 05/05/21b 16,097 17,292,363

5.13%, 01/15/45b 13,514 14,950,133

5.25%, 01/17/42b 20,400 22,794,348

5.25%, 01/08/47b 8,607 9,692,859

5.38%, 10/17/23b 10,290 11,589,113

5.88%, 03/13/20b 13,492 14,621,955

5.88%, 01/15/24b 19,486 22,358,042

5.95%, 01/08/46b 11,055 13,653,036

6.63%, 02/17/37b 16,211 20,807,953

6.75%, 01/15/44b 18,016 24,130,991

7.75%, 01/17/38b 17,756 25,291,824

8.50%, 10/12/35b 17,894 26,700,530

Perusahaan Penerbit SBSN

Indonesia III

3.30%, 11/21/22b 6,671 6,771,065

3.40%, 03/29/22b 11,400 11,613,750

4.15%, 03/29/27b 21,800 22,424,570

4.33%, 05/28/25b 17,249 18,017,270

4.35%, 09/10/24b 9,360 9,867,686

4.55%, 03/29/26b 16,800 17,783,976

448,825,674

IRAQ — 0.81%

Iraq International Bond

5.80%, 01/15/28

(Call 12/17/17)b 73,445 69,221,913

6.75%, 03/09/23b 27,500 27,603,456

96,825,369

IVORY COAST — 0.93%

Ivory Coast Government

International Bond

5.75%, 12/31/32

(Call 12/31/17)b,e 46,356 45,602,425

6.13%, 06/15/33b 37,066 36,630,899

6.38%, 03/03/28b 27,857 28,901,637

111,134,961

JAMAICA — 1.10%

Jamaica Government

International Bond

6.75%, 04/28/28 52,962 61,303,515




SecurityPrincipal

(000s) Value

7.88%, 07/28/45 $ 26,976 $ 33,509,483

8.00%, 03/15/39 28,877 35,915,769

130,728,767

JORDAN — 0.72%

Jordan Government

International Bond

5.75%, 01/31/27b 24,261 24,230,674

6.13%, 01/29/26b 26,219 27,149,223

7.38%, 10/10/47d 32,650 34,201,801

85,581,698

KAZAKHSTAN — 1.52%

Kazakhstan Government

International Bond

3.88%, 10/14/24b 37,721 38,946,933

4.88%, 10/14/44b 23,430 24,279,338

5.13%, 07/21/25b 62,101 69,009,736

6.50%, 07/21/45b 39,501 49,475,002

181,711,009

KENYA — 0.44%

Kenya Government

International Bond

6.88%, 06/24/24b 50,415 52,368,581

52,368,581

LEBANON — 2.75%

Lebanon Government

International Bond

6.00%, 01/27/23b 34,640 33,687,400

6.10%, 10/04/22b 39,353 38,811,896

6.38%, 03/09/20 34,212 34,682,415

6.60%, 11/27/26b 40,375 38,860,937

6.60%, 11/27/26b 800 770,000

6.65%, 02/26/30b 36,289 34,066,299

6.75%, 11/29/27b 30,253 29,118,513

6.85%, 03/23/27b 29,327 28,630,813

7.00%, 03/23/32b 32,720 31,188,284

8.25%, 04/12/21b 54,646 57,924,760

327,741,317

LITHUANIA — 1.23%

Lithuania Government

International Bond

6.13%, 03/09/21b 37,175 41,589,531

6.63%, 02/01/22b 36,964 43,201,675

SecurityPrincipal

(000s) Value

7.38%, 02/11/20b $ 55,662 $ 62,132,708

146,923,914

MALAYSIA — 1.12%

1MDB Global Investments Ltd.

4.40%, 03/09/23b 84,400 80,813,000

Malaysia Sovereign Sukuk Bhd

3.04%, 04/22/25b 24,568 24,838,813

Malaysia Sukuk Global Bhd

3.18%, 04/27/26b 27,906 28,475,534

134,127,347

MEXICO — 2.54%

Mexico Government

International Bond

3.50%, 01/21/21 7,078 7,382,354

3.60%, 01/30/25 18,931 19,167,638

3.63%, 03/15/22 18,688 19,463,552

4.00%, 10/02/23 25,170 26,365,575

4.13%, 01/21/26 15,645 16,302,090

4.15%, 03/28/27 25,305 26,304,547

4.35%, 01/15/47 14,120 13,290,450

4.60%, 01/23/46 15,792 15,397,200

4.60%, 02/10/48 8,400 8,215,436

4.75%, 03/08/44 29,504 29,415,488

5.13%, 01/15/20 14,210 15,222,463

5.55%, 01/21/45 17,969 20,080,357

5.75%, 10/12/10 21,852 22,835,340

6.05%, 01/11/40 25,296 29,583,672

6.75%, 09/27/34 15,940 20,682,150

8.30%, 08/15/31 8,517 12,743,561

302,451,873

MONGOLIA — 0.22%

Mongolia Government

International Bond

5.13%, 12/05/22b 26,184 25,987,620

25,987,620

MOROCCO — 0.33%

Morocco Government

International Bond

4.25%, 12/11/22b 37,280 39,144,000

39,144,000




SecurityPrincipal

(000s) Value

NIGERIA — 0.40%

Nigeria Government

International Bond

7.88%, 02/16/32b $ 43,171 $ 47,326,209

47,326,209

OMAN — 2.03%

Oman Government

International Bond

3.63%, 06/15/21b 37,168 37,391,008

3.88%, 03/08/22b 26,972 27,214,748

4.75%, 06/15/26b 66,752 65,817,472

5.38%, 03/08/27b 56,309 57,773,034

6.50%, 03/08/47b 52,581 54,132,139

242,328,401

PAKISTAN — 0.61%

Pakistan Government

International Bond

8.25%, 04/15/24b 25,925 28,865,673

Second Pakistan International

Sukuk Co.Ltd./The

6.75%, 12/03/19b 5,552 5,781,020

Third Pakistan International

Sukuk Co. Ltd. (The)

5.50%, 10/13/21b 37,250 37,901,875

72,548,568

PANAMA — 2.06%

Panama Government

International Bond

3.75%, 03/16/25

(Call 12/16/24) 35,247 36,744,997

3.88%, 03/17/28

(Call 12/17/27) 36,233 37,818,194

4.00%, 09/22/24

(Call 06/22/24) 26,969 28,654,563

4.50%, 05/15/47 34,450 36,458,647

5.20%, 01/30/20 29,913 32,021,866

6.70%, 01/26/36 56,340 74,439,225

246,137,492

PARAGUAY — 0.26%

Paraguay Government

International Bond

6.10%, 08/11/44b 26,818 30,572,520

30,572,520

SecurityPrincipal

(000s) Value

PERU — 2.76%

Peruvian Government

International Bond

4.13%, 08/25/27 $ 41,210 $ 45,073,438

5.63%, 11/18/50 65,500 82,595,500

6.55%, 03/14/37 36,091 48,506,304

7.35%, 07/21/25 43,627 56,998,675

8.75%, 11/21/33 60,897 96,156,363

329,330,280

PHILIPPINES — 3.67%

Philippine Government

International Bond

3.70%, 03/01/41 34,571 34,354,931

3.70%, 02/02/42 36,830 36,589,868

3.95%, 01/20/40 33,532 34,589,935

4.00%, 01/15/21 29,768 31,442,450

4.20%, 01/21/24 26,838 29,344,401

5.00%, 01/13/37 22,942 27,019,482

5.50%, 03/30/26 19,553 23,231,701

6.38%, 01/15/32 18,870 24,617,236

6.38%, 10/23/34 34,741 46,470,951

7.75%, 01/14/31 33,258 47,750,839

9.50%, 02/02/30 35,606 56,384,949

10.63%, 03/16/25 29,961 45,620,716

437,417,459

POLAND — 2.63%

Republic of Poland Government

International Bond

3.00%, 03/17/23 55,195 56,367,894

3.25%, 04/06/26 46,353 47,395,943

4.00%, 01/22/24 51,546 55,218,652

5.00%, 03/23/22 81,661 89,827,100

5.13%, 04/21/21 59,378 64,870,465

313,680,054

ROMANIA — 1.53%

Romanian Government

International Bond

4.38%, 08/22/23b 42,214 45,116,212

4.88%, 01/22/24b 31,106 34,177,718

6.13%, 01/22/44b 23,842 30,279,340

6.75%, 02/07/22b 63,283 73,091,865

182,665,135




SecurityPrincipal

(000s) Value

RUSSIA — 3.60%

Russian Foreign Bond-Eurobond

4.25%, 06/23/27b $ 26,800 $ 27,315,684

4.50%, 04/04/22b 13,800 14,697,000

4.75%, 05/27/26b 41,600 43,846,400

4.88%, 09/16/23b 35,200 38,324,000

5.00%, 04/29/20b 35,600 37,602,500

5.25%, 06/23/47b 46,200 47,362,845

5.63%, 04/04/42b 42,800 47,229,800

5.88%, 09/16/43b 16,000 18,260,000

7.50%, 03/31/30b,e 84,520 99,416,317

12.75%, 06/24/28b 31,760 55,659,400

429,713,946

SENEGAL — 0.26%

Senegal Government

International Bond

6.25%, 05/23/33b 30,066 31,101,563

31,101,563

SERBIA — 0.88%

Serbia International Bond

4.88%, 02/25/20b 37,161 38,736,998

7.25%, 09/28/21b 57,764 66,428,600

105,165,598

SLOVAKIA — 0.35%

Slovakia Government

International Bond

4.38%, 05/21/22b 39,039 42,259,717

42,259,717

SOUTH AFRICA — 2.29%

Republic of South Africa

Government International Bond

4.30%, 10/12/28 44,588 41,132,430

4.67%, 01/17/24 29,223 29,588,287

4.85%, 09/27/27 15,175 14,811,811

4.88%, 04/14/26 24,750 24,564,375

5.00%, 10/12/46 25,079 22,257,613

5.38%, 07/24/44 23,223 21,829,620

5.50%, 03/09/20 30,114 31,770,270

5.65%, 09/27/47 22,085 21,208,697

5.88%, 05/30/22 20,467 22,334,614

5.88%, 09/16/25 40,763 43,412,595

272,910,312

SecurityPrincipal

(000s) Value

SRI LANKA — 1.71%

Sri Lanka Government

International Bond

5.88%, 07/25/22b $ 28,324 $ 30,235,870

6.20%, 05/11/27b 36,900 39,168,063

6.25%, 10/04/20b 23,331 24,905,842

6.25%, 07/27/21b 25,347 27,343,076

6.83%, 07/18/26b 32,614 36,149,358

6.85%, 11/03/25b 41,361 45,918,155

203,720,364

TRINIDAD AND TOBAGO — 0.26%

Trinidad & Tobago Government

International Bond

4.50%, 08/04/26b 30,762 31,031,167

31,031,167

TUNISIA — 0.20%

Banque Centrale de Tunisie

International Bond

5.75%, 01/30/25b 24,618 24,494,910

24,494,910

TURKEY — 4.26%

Hazine Mustesarligi Varlik

Kiralama AS

4.25%, 06/08/21b 9,528 9,611,370

4.49%, 11/25/24b 10,200 9,996,000

5.00%, 04/06/23b 11,010 11,216,438

Turkey Government

International Bond

3.25%, 03/23/23 18,326 17,295,163

4.25%, 04/14/26 11,511 10,863,506

4.88%, 10/09/26 31,917 31,158,971

4.88%, 04/16/43 32,172 27,748,350

5.13%, 03/25/22 16,326 16,938,225

5.63%, 03/30/21 25,374 26,769,570

5.75%, 03/22/24 29,363 30,977,965

5.75%, 05/11/47 28,280 26,975,519

6.00%, 03/25/27 32,924 34,693,665

6.00%, 01/14/41 28,306 28,306,000

6.25%, 09/26/22 23,284 25,321,350

6.63%, 02/17/45 31,485 33,610,237

6.75%, 05/30/40 22,618 24,597,075

6.88%, 03/17/36 29,326 32,258,600

7.00%, 06/05/20 10,532 11,400,890




SecurityPrincipal

(000s) Value

7.25%, 03/05/38 $ 10,377 $ 11,933,550

7.38%, 02/05/25 33,577 38,571,579

8.00%, 02/14/34 17,287 21,090,140

11.88%, 01/15/30 17,049 26,511,195

507,845,358

UKRAINE — 3.02%

Ukraine Government

International Bond

7.38%, 09/25/32d 66,040 65,202,150

7.75%, 09/01/20b 34,846 37,110,990

7.75%, 09/01/21b 35,259 37,594,909

7.75%, 09/01/22b 29,428 31,458,532

7.75%, 09/01/22b 250 267,250

7.75%, 09/01/23b 34,157 36,291,812

7.75%, 09/01/24b 37,106 38,868,535

7.75%, 09/01/25b 31,239 32,488,560

7.75%, 09/01/26b 38,131 39,274,930

7.75%, 09/01/27b 40,884 42,110,520

360,668,188

URUGUAY — 2.21%

Uruguay Government

International Bond

4.38%, 10/27/27 54,032 58,354,560

4.38%, 10/27/27 3,425 3,699,000

4.50%, 08/14/24 42,736 46,795,690

5.10%, 06/18/50 104,595 112,178,138

7.63%, 03/21/36 30,108 42,452,280

263,479,668

VENEZUELA — 0.79%

Venezuela Government

International Bond

6.00%, 12/09/20b 15,225 5,937,802

7.00%, 03/31/38b 14,668 4,693,760

7.65%, 04/21/25b 17,093 5,598,029

8.25%, 10/13/24b 25,594 8,509,864

9.00%, 05/07/23b 19,635 6,626,813

9.25%, 09/15/27 28,701 10,547,675

9.25%, 05/07/28b 23,502 7,755,660

9.38%, 01/13/34 19,224 6,488,213

11.75%, 10/21/26b 28,749 11,715,258

11.95%, 08/05/31b 34,433 13,738,568

12.75%, 08/23/22b 29,007 12,658,616

94,270,258

Security

Principalor Shares

(000s) Value

VIETNAM — 0.24%

Vietnam Government

International Bond

4.80%, 11/19/24b $ 26,812 $ 28,729,058

28,729,058

ZAMBIA — 0.55%

Zambia Government

International Bond

8.50%, 04/14/24b 31,655 33,870,850

8.97%, 07/30/27b 28,849 31,373,287

65,244,137

TOTAL FOREIGN GOVERNMENT OBLIGATIONS

(Cost: $9,703,923,074) 9,761,121,333

SHORT-TERM INVESTMENTS — 0.32%

MONEY MARKET FUNDS — 0.32%

BlackRock Cash Funds: Treasury,

SL Agency Shares

1.00%f,g 37,553 37,553,049

37,553,049

TOTAL SHORT-TERM INVESTMENTS

(Cost: $37,553,049) 37,553,049

TOTAL INVESTMENTS

IN SECURITIES — 98.37%

(Cost: $11,684,527,879)h 11,733,549,398

Other Assets, Less Liabilities — 1.63% 194,660,374

NET ASSETS — 100.00% $11,928,209,772

FRN — Floating Rate Note

a Investments are denominated in U.S. dollars.b This security may be resold to qualified foreign investors and foreign

institutional buyers under Regulation S of the Securities Act of 1933.c Floating rate security. Rate shown is the rate in effect as of period end.d This security may be resold to qualified institutional buyers under Rule 144A

of the Securities Act of 1933.e Step coupon security. Coupon rate will either increase (step-up bond) or

decrease (step-down bond) at regular intervals until maturity. Interest rateshown reflects the rate currently in effect.

f Affiliated issuer. See Schedule 1.g The rate quoted is the annualized seven-day yield of the fund at period end.h The cost of investments (including short positions and derivatives, if any) for

federal income tax purposes was $11,722,447,160. Net unrealizedappreciation was $11,102,238, of which $207,982,724 represented grossunrealized appreciation on investments and $196,880,486 represented grossunrealized depreciation on investments.




Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund during the year ended October 31, 2017, for purposes of

Section 2(a)(3) of the 1940 Act, and/or related parties of the Fund were as follows:

Affiliated issuer

Sharesheld at

10/31/16(000s)

Sharespurchased

(000s)

Sharessold

(000s)

Sharesheld at

10/31/17(000s)

Value at10/31/17

Net realizedgain (loss) a

Change inunrealized

appreciation(depreciation) Income

BlackRock Cash Funds:Treasury,SL Agency Shares

27,984 9,569b — 37,553 $37,553,049 $ 2,882 $ — $289,838

a Includes realized capital gain distributions from an affiliated fund, if any.b Net of shares purchased and sold.

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 October 31, 2017.

The breakdown of the Fund’s investments into major categories is disclosed in the schedule of investments above.

Level 1 Level 2 Level 3 Total

Investments:Assets:

Corporate bonds & notes $ — $ 1,934,875,016 $ — $ 1,934,875,016Foreign government obligations — 9,761,121,333 — 9,761,121,333Money market funds 37,553,049 — — 37,553,049

Total $37,553,049 $11,695,996,349 $ — $11,733,549,398

See notes to financial statements.


Statement of Assets and LiabilitiesiSHARES® J.P. MORGAN USD EMERGING MARKETS BOND ETFOctober 31, 2017

ASSETS

Investments in securities, at cost:

Unaffiliated $11,646,974,830

Affiliated (Note 2) 37,553,049

Total cost of investments in securities $11,684,527,879

Investments in securities, at fair value (Note 1):

Unaffiliated $11,695,996,349

Affiliated (Note 2) 37,553,049

Cash 1,281,399

Receivables:

Investment securities sold 98,819,189

Due from custodian (Note 4) 104,825,129

Dividends and interest 167,907,996

Capital shares sold 2,113,374

Total Assets 12,108,496,485

LIABILITIES

Payables:

Investment securities purchased 174,408,786

Capital shares redeemed 28

Securities related to in-kind transactions (Note 4) 1,975,700

Investment advisory fees (Note 2) 3,902,199

Total Liabilities 180,286,713

NET ASSETS $11,928,209,772

Net assets consist of:

Paid-in capital $12,021,058,331

Undistributed net investment income 37,564,496

Accumulated net realized loss (179,434,574)

Net unrealized appreciation 49,021,519

NET ASSETS $11,928,209,772

Shares outstandinga 102,900,000

Net asset value per share $ 115.92

a No par value, unlimited number of shares authorized.


F I N A N C I A L S T A T E M E N T S 19

Statement of OperationsiSHARES® J.P. MORGAN USD EMERGING MARKETS BOND ETFYear ended October 31, 2017

NET INVESTMENT INCOME

Dividends — affiliated (Note 2) $ 289,838

Interest — unaffiliated 527,920,886

Total investment income 528,210,724

EXPENSESInvestment advisory fees (Note 2) 55,642,249

Proxy fees 234,693

Total expenses 55,876,942

Less investment advisory fees waived (Note 2) (14,533,486)

Net expenses 41,343,456

Net investment income 486,867,268

NET REALIZED AND UNREALIZED GAIN (LOSS)

Net realized gain (loss) from:

Investments — unaffiliated (64,159,637)

In-kind redemptions — unaffiliated 120,305,785

Realized gain distributions from affiliated funds 2,882

Net realized gain 56,149,030

Net change in unrealized appreciation/depreciation on:

Investments — unaffiliated 11,132,447

Net change in unrealized appreciation/depreciation 11,132,447

Net realized and unrealized gain 67,281,477

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $554,148,745



Statements of Changes in Net AssetsiSHARES® J.P. MORGAN USD EMERGING MARKETS BOND ETF

Year endedOctober 31, 2017

Year endedOctober 31, 2016

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:

Net investment income $ 486,867,268 $ 316,108,337

Net realized gain 56,149,030 80,938,376

Net change in unrealized appreciation/depreciation 11,132,447 255,360,546

Net increase in net assets resulting from operations 554,148,745 652,407,259

DISTRIBUTIONS TO SHAREHOLDERS:

From net investment income (472,368,085) (321,652,097)

Total distributions to shareholders (472,368,085) (321,652,097)

CAPITAL SHARE TRANSACTIONS:

Proceeds from shares sold 9,694,660,077 9,405,191,061

Cost of shares redeemed (7,497,526,529) (4,551,094,063)

Net increase in net assets from capital share transactions 2,197,133,548 4,854,096,998

INCREASE IN NET ASSETS 2,278,914,208 5,184,852,160

NET ASSETSBeginning of year 9,649,295,564 4,464,443,404

End of year $11,928,209,772 $ 9,649,295,564

Undistributed net investment income included in net assets at end of year $ 37,564,496 $ 23,062,495

SHARES ISSUED AND REDEEMEDShares sold 85,200,000 84,000,000

Shares redeemed (66,400,000) (41,100,000)

Net increase in shares outstanding 18,800,000 42,900,000


F I N A N C I A L S T A T E M E N T S 21

Financial HighlightsiSHARES® J.P. MORGAN USD EMERGING MARKETS BOND ETF(For a share outstanding throughout each period)

Year endedOct. 31, 2017





Net asset value, beginning of year $ 114.74 $ 108.36 $ 114.15 $ 110.96 $ 120.81

Income from investment operations:

Net investment incomea 5.33 5.39 5.08 4.86 5.00

Net realized and unrealized gain (loss)b 1.02 6.57 (5.75) 3.17 (9.77)

Total from investment operations 6.35 11.96 (0.67) 8.03 (4.77)

Less distributions from:

Net investment income (5.17) (5.58) (5.12) (4.84) (5.08)

Total distributions (5.17) (5.58) (5.12) (4.84) (5.08)

Net asset value, end of year $ 115.92 $ 114.74 $ 108.36 $ 114.15 $ 110.96

Total return 5.74% 11.35% (0.55)% 7.45% (4.01)%

Ratios/Supplemental data:

Net assets, end of year (000s) $11,928,210 $9,649,296 $4,464,443 $5,147,968 $3,850,273

Ratio of expenses to average net assets 0.40% 0.40% 0.40% 0.59% 0.60%

Ratio of expenses to average net assets prior to

waived fees 0.54% 0.59% 0.60% 0.60% n/a

Ratio of net investment income to average net assets 4.69% 4.81% 4.61% 4.35% 4.30%

Portfolio turnover ratec 26% 32% 24% 52% 32%

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.



Notes to Financial StatementsiSHARES® J.P. MORGAN USD EMERGING MARKETS BOND ETF

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 fund (the “Fund”):

iShares ETF

Diversification

Classification

J.P. Morgan USD Emerging Markets Bond Non-diversified

The investment objective of the 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

the Fund’s investment objective.

Pursuant to the Trust’s organizational documents, the Fund’s officers and trustees are indemnified against certain liabilities that

may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into

contracts with service providers that contain general indemnification clauses. The Fund’s maximum exposure under these

arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred.

1. SIGNIFICANT ACCOUNTING POLICIES

The following significant accounting policies are consistently followed by the 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. The Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance

applicable to investment companies.

SECURITY VALUATION

The 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 Fund. The investments of the Fund are valued pursuant to

policies and procedures developed by the Global Valuation Committee and approved by the Board of Trustees of the Trust (the

“Board”).

• Fixed income investments are valued using the last available bid price or current market quotations provided by dealers or

prices (including evaluated prices) supplied by approved independent third-party pricing services. The pricing services may

use matrix pricing or valuation models that utilize certain inputs and assumptions to derive values, including transaction

data, credit quality information, perceived market movements, news, and other relevant information and by other methods,

which may include consideration of: yields or prices of securities of comparable quality, coupon, maturity and type;

indications as to values from dealers; general market conditions; and/or other factors and assumptions. Pricing services

generally value fixed income securities assuming orderly transactions of an institutional round lot size, but a fund may hold

or transact in such securities in smaller odd lot sizes. Odd lots may trade at lower prices than institutional round lots.

• Open-end U.S. mutual funds (including money market funds) are valued at that day’s published net asset value (“NAV”).

N O T E S T O F I N A N C I A L S T A T E M E N T S 23

Notes to Financial Statements (Continued)


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 by the Global

Valuation Committee, in accordance with policies approved by the Board. The fair valuation approaches that may be utilized by

the Global Valuation Committee to determine fair value include market approach, income approach and the cost approach. The

valuation techniques used under these approaches take into consideration inputs that 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 inputs, such as future cash flows, interest rates, yield curves, volatilities, prepayment

speeds, loss severities, credit risks and/or default rates. Valuations based on such inputs 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 the 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 to valuation techniques are

categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes 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

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 based on the best information available in the circumstances, to the

extent observable inputs are not available, including the Global Valuation Committee’s assumptions used in determining the

fair value of investments.

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1

measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgement

exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may

fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is

determined based on the lowest level input that is significant to the fair value measurement in its entirety. The fair value hierarchy

for the Fund’s investments is included in its schedule of investments.

Changes in valuation techniques may result in transfers in or out of an assigned level within the fair value 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. The categorization of values determined for financial instruments are based on the pricing

transparency of the financial instruments and are not necessarily an indication of the risks associated with investing in those

securities.




SECURITY TRANSACTIONS AND INCOME RECOGNITION

Security transactions are accounted for on trade date. Realized gains and losses on investment transactions are determined

using the specific identification method. Interest income, including amortization and accretion of premiums and discounts on debt

securities, and payment-in-kind interest income, are recognized daily on the accrual basis. Dividend income and capital gain

distributions, if any, are recognized on the ex-dividend date, net of any foreign taxes withheld at source.

DISTRIBUTIONS TO SHAREHOLDERS

Dividends and distributions paid by the 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 Fund.

RECENT ACCOUNTING STANDARD

In March 2017, the Financial Accounting Standards Board issued Accounting Standards Update “Premium Amortization on

Purchase Callable Debt Securities” which amends the amortization period for certain purchased callable debt securities. Under

the new guidance, premium amortization of purchased callable debt securities that have explicit, non-contingent call features and

are callable at fixed prices will be amortized to the earliest call date. The guidance will be applied on a modified retrospective

basis and is effective for fiscal years, and their interim periods, beginning after December 15, 2018. Management is currently

evaluating the impact of this guidance to the Fund.

2. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

Pursuant to an Investment Advisory Agreement with the Trust, BlackRock Fund Advisors (“BFA”) manages the investment of the

Fund’s assets. BFA is a California corporation indirectly owned by BlackRock, Inc. (“BlackRock”). Under the Investment Advisory

Agreement, BFA is responsible for substantially all expenses of the Fund, except (i) interest and taxes; (ii) brokerage

commissions and other expenses connected with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee

payable to BFA; and (v) litigation expenses and any extraordinary expenses (in each case as determined by a majority of the

independent trustees).

For its investment advisory services to the Fund, BFA is entitled to an annual investment advisory fee, accrued daily and paid

monthly by the Fund, based on the Fund’s allocable portion of the aggregate of the average daily net assets of the Fund and

certain other iShares funds, as follows:

Investment Advisory Fee Aggregate Average Daily Net Assets

0.4000% First $19 billion

0.3800a Over $19 billion, up to and including $33 billion


0.3430a Over $47 billion

a Investment advisory fee level reflects a 5% reduction (rounded to the fourth decimal place) from the investment advisory fee at the prior aggregate averagedaily net asset level.




Prior to August 4, 2017, for its investment advisory services to the Fund, BFA was 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 Aggregate Average Daily Net Assets

0.6000% First $19 billion



0.5145a Over $47 billion

a Investment advisory fee level reflects a 5% reduction (rounded to the fourth decimal place) from the investment advisory fee at the prior aggregate averagedaily net asset level.

The total of the investment advisory fee and any other fund expenses are the Fund’s total annual operating expenses. BFA

contractually agreed to waive a portion of its investment advisory fee for the Fund through February 28, 2023 in order to limit total

annual operating expenses to 0.40% of average daily net assets. The contractual waiver was terminated effective August 4, 2017,

pursuant to a written agreement between the Trust and BFA, and in conjunction with the annual advisory fee reduction from

0.60% to 0.40%.

BlackRock Investments, LLC, an affiliate of BFA, is the distributor for the Fund. Pursuant to the distribution agreement, BFA is

responsible for any fees or expenses for distribution services provided to the Fund.

Cross trading is the buying or selling of portfolio securities between funds to which BFA (or an affiliate) serves as investment

adviser. At its regularly scheduled quarterly meetings, the Board reviews such transactions as of the most recent calendar quarter

for compliance with the requirements and restrictions set forth by Rule 17a-7.

For the year ended October 31, 2017, the purchase and sales transactions executed by the Fund pursuant to Rule 17a-7 under

the 1940 Act were $ 99,543,347 and $ 84,656,531, respectively.

The 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 statement of operations.

The PNC Financial Services Group, Inc. is the largest stockholder of BlackRock and is considered to be an affiliate of the Fund

for 1940 Act purposes.

Certain trustees and officers of the Trust are also officers of BlackRock Institutional Trust Company, N.A. and/or BFA.

3. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the year ended

October 31, 2017, were $3,028,524,860 and $2,686,796,990, respectively.

In-kind purchases and sales (see Note 4) for the year ended October 31, 2017, were $9,401,000,260 and $7,460,398,396,

respectively.




4. CAPITAL SHARE TRANSACTIONS

Capital shares are issued and redeemed by the 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 the Fund are not redeemable. Transactions in

capital shares for the 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 statement 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 statement of assets and liabilities.

5. PRINCIPAL RISKS

In the normal course of business, the Fund invests in securities or other instruments and may enter into certain transactions, and

such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an

issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including,

without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social

instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price

fluctuations. The Fund’s prospectus provides details of the risks to which the Fund is subject.

BFA uses a “passive” or index approach to try to achieve the 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 a fund may suffer through holding market positions in the face of market

movements. A fund is exposed to market risk by its investment in equity, fixed income and/or financial derivative instruments or

by its investment in underlying funds. The fair value of securities held by a fund 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 a 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 the Fund’s portfolio

are disclosed in its schedule of investments.




Investing in the securities of non-U.S. issuers involves certain considerations and risks not typically associated with securities of

U.S. issuers. Such risks include, but are not limited to: differences in accounting, auditing and financial reporting standards; more

substantial governmental involvement in the economy; higher inflation rates, greater social, economic and political uncertainties;

possible nationalization or expropriation of assets; less availability of public information about issuers; imposition of withholding or

other taxes; higher transaction and custody costs and delays in settlement procedures; and lower level of regulation of the

securities markets and issuers. Non-U.S. securities may be less liquid, more difficult to value, and have greater price volatility due

to exchange rate fluctuations. These and other risks are heightened for investments in issuers from countries with less developed

capital markets.

The United States and the European Union, along with the regulatory bodies of a number of countries including Japan, Australia,

Norway, Switzerland and Canada, have imposed economic sanctions, which consist of asset freezes and sectorial sanctions, on

certain Russian individuals and Russian corporate entities. Broader sanctions on Russia could also be instituted. 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.

Changes in market interest rates or economic conditions may affect the value and/or liquidity of fixed income investments.

Interest rate risk is the risk that prices of bonds and other fixed-income securities will decrease as interest rates rise and increase

as interest rates fall. Securities with longer durations tend to be more sensitive to interest rate changes, usually making their

prices more volatile than those of securities with shorter durations. Given the environment of historically low interest rates, a fund

may be subject to a greater risk of price losses if interest rates rise.

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 a fund to issuer and counterparty credit

risks, consist principally of financial instruments and receivables due from counterparties. The extent of a 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.

High yield securities that are rated below investment-grade (commonly referred to as “junk bonds”) or are unrated may be

deemed speculative, involve greater levels of risk than higher-rated securities of similar maturity and are more likely to default.

High yield securities may be issued by less creditworthy issuers, and issuers of high yield securities may be unable to meet their

interest or principal payment obligations. High yield securities are subject to extreme price fluctuations, may be less liquid than

higher rated fixed-income securities, even under normal economic conditions, and frequently have redemption features.

6. INCOME TAX INFORMATION

The Fund is treated as an entity separate from the Trust’s other funds for federal income tax purposes. It is the policy of the 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.




U.S. GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and taxreporting. These reclassifications have no effect on net assets or NAV per share. The following permanent differences as ofOctober 31, 2017, attributable to realized gains (losses) from in-kind redemptions, were reclassified to the following accounts:

Paid-in

Capital

Undistributed

Net Investment

Income/Distributions

in Excess of Net

Investment Income

Undistributed

Net Realized

Gain/Accumulated

Net Realized Loss

$80,798,328 $ 2,818 $ (80,801,146)

The tax character of distributions paid during the years ended October 31, 2017 and October 31, 2016 was as follows:

2017 2016

Ordinary income $472,368,085 $321,652,097

As of October 31, 2017, the tax components of accumulated net earnings (losses) were as follows:

Undistributed

Ordinary

Income

Capital

Loss

Carryforwards

Net

Unrealized

Gains (Losses) a Total

$ 37,564,496 $(141,515,293) $ 11,102,238 $(92,848,559)

a The difference between book-basis and tax-basis unrealized gains (losses) was attributable primarily to the tax deferral of losses on wash sales.

As of October 31, 2017, the Fund had capital loss carryforwards available to offset future realized capital gains through theindicated expiration dates as follows:

Non-

Expiring a

Expiring

2018 Total

$141,419,263 $96,030 $141,515,293

a Must be utilized prior to losses subject to expiration.

Management has analyzed tax laws and regulations and their application to the Fund as of October 31, 2017, inclusive of theopen tax return years, and does not believe there are any uncertain tax positions that require recognition of a tax liability in theFund’s financial statements.

7. LEGAL PROCEEDINGS

On June 16, 2016, investors (the “Plaintiffs”) in certain iShares funds (iShares Core S&P Small-Cap ETF, iShares Russell 1000Growth ETF, iShares Core S&P 500 ETF, iShares Russell Mid-Cap Growth ETF, iShares Russell Mid-Cap ETF, iShares RussellMid-Cap Value ETF, iShares Select Dividend ETF, iShares Morningstar Mid-Cap ETF, iShares Morningstar Large-Cap ETF,iShares U.S. Aerospace & Defense ETF and iShares U.S. Preferred Stock ETF) filed a putative class action lawsuit againstiShares Trust, BlackRock, Inc. and certain of its advisory affiliates, and certain directors/trustees and officers of the Funds(collectively, “Defendants”). The lawsuit alleges the Defendants violated federal securities laws by failing to adequately disclose inthe prospectuses issued by the funds noted above the risks of using stop-loss orders in the event of a ‘flash crash’, such as theone that occurred on May 6, 2010. On September 18, 2017, the Court issued a Statement of Decision holding that the Plaintiffslack standing to assert their claims. On October 11, 2017, the Court entered final judgment dismissing all of the Plaintiffs’ claimswith prejudice. Plaintiffs have appealed the Court’s decision.




8. SUBSEQUENT EVENTS

Management has evaluated the impact of all subsequent events on the Fund 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.


Report of Independent Registered Public Accounting Firm

To the Board of Trustees of iShares Trust and the

Shareholders of the iShares J.P. Morgan USD Emerging Markets Bond ETF

In our opinion, the accompanying statement of assets and liabilities, including the schedule 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 the iShares J.P. Morgan USD Emerging Markets Bond ETF (constituting a fund of the iShares Trust, hereafter

referred to as the “Fund”) as of October 31, 2017, and the results of its operations for the year then ended, the changes in its net

assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then

ended, 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 Fund’s 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 as of

October 31, 2017 by correspondence with the custodian, transfer agent and brokers, or by other appropriate auditing procedures

where replies were not received, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California

December 21, 2017

R E P O R T O F I N D E P E N D E N T R E G I S T E R E D P U B L I C A C C O U N T I N G F I R M 31

Tax Information (Unaudited)


For the fiscal year ended October 31, 2017, the Fund earned foreign source income of $526,285,625 which it intends to pass

through to its shareholders.


Board Review and Approval of Investment AdvisoryContractiSHARES® J.P. MORGAN USD EMERGING MARKETS BOND 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 May 5, 2017 and May 12, 2017. 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 18, 2017, 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 19-21, 2017,

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. 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 further enhancements 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 (“ETFs”) (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 the 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 quarter ended December 31, 2016, to that of

relevant comparison funds for the same periods.

The Board noted that the Fund seeks to track its specified 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

B O A R D R E V I E W A N D A P P R O V A L O F I N V E S T M E N T A D V I S O R Y C O N T R A C T 33

Board Review and Approval of Investment AdvisoryContract (Continued)


performance information, including any additional detailed information requested by the Boards, 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 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, technology, product design, compliance and risk management, 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 day-to-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 19-21, 2017 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


Costs of Services Provided to Fund and Profits Realized by BFA and Affiliates — The Board reviewed information about the

profitability of the Fund to BlackRock, based on the fees payable to BFA and its affiliates (including fees under the Advisory

Contract), and other sources of revenue and expense to BFA and its affiliates from the Fund’s operations for the last calendar

year. The Board reviewed BlackRock’s profitability methodology for the iShares funds, including supplemental information that

was responsive to requests of the 15(c) Committee. The Board noted 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, a BFA affiliate, 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 by the 15(c)

Committee during its meetings and addressed by management, including through supplemental information. 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 and 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 as the assets of the Fund, on an aggregate basis with the assets of certain other iShares

funds, increase. During the June 19-21, 2017 meeting, the Board approved a permanent reduction to the advisory fee rate

charged to the Fund at each breakpoint tier. 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

the Advisory Contract at least annually, 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 ETF, as

compared to the Other Accounts that are institutional clients, in light of differing regulatory requirements and client-imposed

mandates. The Board also acknowledged BFA’s expressed business purpose for launching a suite of iShares “Core” ETFs that

generally are subject to lower investment advisory fees than iShares non-Core ETFs that may provide a similar investment

exposure. 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 also noted the revenue received by BFA and/or its affiliates pursuant to an agreement

that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA

and/or its affiliates, including the iShares funds. 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

B O A R D R E V I E W A N D A P P R O V A L O F I N V E S T M E N T A D V I S O R Y C O N T R A C T 35



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.

Conclusion — 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 to approve the



Supplemental Information (Unaudited)


Proxy Results

A special meeting of the shareholders of each series of iShares Trust (the “Trust”) was held on June 19, 2017, to elect five

Trustees to the Board of Trustees of the Trust. The five nominees were Jane D. Carlin, Richard L. Fagnani, Drew E. Lawton,

Madhav V. Rajan and Mark Wiedman, all of whom were elected as Trustees at the special meeting. The other Trustees whose

terms of office as Trustees continued after the special meeting are Cecilia H. Herbert, Charles A. Hurty, John E. Kerrigan, John E.

Martinez and Robert S. Kapito.

Trustee Votes For Votes Withheld

Jane D. Carlin 8,669,874,031 59,322,838

Richard L. Fagnani 8,672,718,914 56,477,955

Drew E. Lawton 8,670,713,236 58,483,633

Madhav V. Rajan 8,653,682,870 75,513,999

Mark Wiedman 8,664,674,816 64,522,053

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 the

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 Distributionsfor the Fiscal Year

% Breakdown of the Total CumulativeDistributions for the Fiscal Year

Net

Investment

Income

Net

Realized

Capital

Gains

Return

of

Capital

Total

Per

Share

Net

Investment

Income

Net

Realized

Capital

Gains

Return

of

Capital

Total

Per

Share

$5.094513 $ — $0.074686 $5.169199 99% — % 1% 100%

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 ask on the primary securities exchange on

which 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 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.

S U P P L E M E N T A L I N F O R M A T I O N 37

Supplemental Information (Unaudited) (Continued)


Premium/discount information for the Fund covering the most recently completed calendar year and the most recently completed

calendar quarters since that year (or the life of the Fund, if shorter) is publicly accessible, free of charge, at www.iShares.com.

The following information shows the frequency of distributions of premiums and discounts for the Fund for the immediately

preceding five calendar years (or from the inception date of the Fund, if less than five years) through the date of the most recent

calendar quarter-end. 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.

Period Covered: January 1, 2012 through September 30, 2017

Premium/Discount Range

Number

of Days

Percentage of

Total Days

Greater than 1.5% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 0.07%

Greater than 1.0% and Less than 1.5% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 0.21



At NAV . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 0.28

Less than 0.0% and Greater than –0.5% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70 4.84

Less than –0.5% and Greater than –1.0% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 0.69



1,446 100.00%

Regulation under the Alternative Investment Fund Managers Directive

The Alternative Investment Fund Managers Directive (“AIFMD”) imposes obligations on fund managers established in the

European Union (the “EU”). These do not currently apply to managers established outside the EU, such as BFA. Rather, non-EU

managers are only required to comply with certain disclosure, reporting and transparency obligations of AIFMD if such managers

market a fund to EU investors.

BFA has registered the iShares J.P. Morgan USD Emerging Markets Bond ETF (the “Fund”) for marketing to investors in the

United Kingdom, the Netherlands, Finland, Sweden and Luxembourg.

Report on Remuneration

BFA is required under AIFMD 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 both (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 Fund.


Supplemental Information (Unaudited) (Continued)


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 Fund 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.

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 Fund 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 Fund in respect of BFA’s

financial year ending December 31, 2016 was USD 847.36 thousand. This figure is comprised of fixed remuneration of USD

333.34 thousand and variable remuneration of USD 514.02 thousand. There were a total of 325 beneficiaries of the remuneration

described above.

The amount of the aggregate remuneration awarded by BFA, which has been attributed to the Fund in respect of BFA’s financial

year ending December 31, 2016, to its senior management was USD 117.19 thousand, and to members of its staff whose actions

have a material impact on the risk profile of the Fund was USD 28.23 thousand.

S U P P L E M E N T A L I N F O R M A T I O N 39

Trustee and Officer InformationiSHARES® 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,

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 346 funds (as of October 31, 2017) within the Exchange-Traded Fund Complex. Drew

E. Lawton, from October 2016 to June 2017, and Richard L. Fagnani, from April 2017 to June 2017, served as a member of the

advisory board (“Advisory Board,” members of which are “Advisory Board Members”) for iShares Trust, iShares, Inc. and iShares

U.S. ETF Trust with respect to all funds within the Exchange-Traded Fund Complex. With the exception of Robert S. Kapito, Mark

K. Wiedman, Charles Park, Martin Small 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, Mr. Park, Mr. Small 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

Robert S. Kapitoa (60) Trustee(since 2009).

President, BlackRock, Inc. (since2006); Vice Chairman of BlackRock,Inc. and Head of BlackRock’s PortfolioManagement Group (since itsformation in 1998) and BlackRock,Inc.’s predecessor entities(since 1988); Trustee, University ofPennsylvania (since 2009); Presidentof Board of Directors, Hope & HeroesChildren’s Cancer Fund (since 2002).

Director of BlackRock, Inc.(since 2006); Director of iShares, Inc.(since 2009); Trustee of iShares U.S.ETF Trust (since 2011).

Mark K. Wiedmanb (46) Trustee(since 2013).

Senior Managing Director, BlackRock,Inc. (since 2014); Managing Director,BlackRock, Inc. (2007-2014); GlobalHead of BlackRock’s ETF and IndexInvestments Business (since 2016);Global Head of iShares (2011-2016);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 PennyMacFinancial Services, Inc. (since 2008).

a 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. and its affiliates.b Mark K. 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 (Continued)

iSHARES® TRUST

Independent Trustees




Cecilia H. Herbert (68) Trustee(since 2005);IndependentBoard Chair(since 2016).

Trustee and Member of the Finance,Technology and Quality Committee ofStanford Health Care (since 2016);Trustee and Member of the InvestmentCommittee, WNET, a New York publicmedia company (since 2011); Chair(1994-2005) and Member (since 1992)of the Investment Committee,Archdiocese of San Francisco;Director (1998-2013) and President(2007-2011) of the Board of Directors,Catholic Charities CYO; Trustee(2002-2011) and Chair of the Financeand Investment Committee(2006-2010) of the Thacher School.

Director of iShares, Inc. (since 2005);Trustee of iShares U.S. ETF Trust(since 2011); Independent Board Chairof iShares, Inc. and iShares U.S. ETFTrust (since 2016); Trustee of ForwardFunds (14 portfolios) (since 2009);Trustee of Salient MF Trust(4 portfolios) (since 2015).

Jane D. Carlin (61) Trustee(since 2015); RiskCommittee Chair(since 2016).

Consultant (since 2012); ManagingDirector and Global Head of FinancialHolding Company Governance &Assurance and the Global Head ofOperational Risk Management ofMorgan Stanley (2006-2012).

Director of iShares, Inc. (since 2015);Trustee of iShares U.S. ETF Trust(since 2015); Director of PHHCorporation (mortgage solutions)(since 2012); Director of The HanoverInsurance Group, Inc. (since 2016).

Richard L. Fagnani (62) Trustee(since 2017);Equity PlusCommittee Chair(since 2017).

Partner, KPMG LLP (2002-2016). Director of iShares, Inc. (since 2017);Trustee of iShares U.S. ETF Trust(since 2017).

Charles A. Hurty (74) Trustee(since 2005);Audit CommitteeChair(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 SkyBridgeAlternative Investments Multi-AdviserHedge Fund Portfolios LLC(2 portfolios) (since 2002).

John E. Kerrigan (62) Trustee(since 2005);SecuritiesLendingCommittee Chair(since 2016).

Chief Investment Officer, Santa ClaraUniversity (since 2002).

Director of iShares, Inc. (since 2005);Trustee of iShares U.S. ETF Trust(since 2011).

Drew E. Lawton (58) Trustee(since 2017);15(c) CommitteeChair(since 2017).

Senior Managing Director of New YorkLife Insurance Company (2010-2015).


T R U S T E E A N D O F F I C E R I N F O R M A T I O N 41


iSHARES® TRUST

Independent Trustees (Continued)




John E. Martinez (56) Trustee(since 2003);Fixed IncomePlus CommitteeChair(since 2016).

Director of Real Estate EquityExchange, Inc. (since 2005).


Madhav V. Rajan (53) Trustee(since 2011);Nominating andGovernanceCommittee Chair(since 2017).

Dean, and George Pratt ShultzProfessor of Accounting, University ofChicago Booth School of Business(since 2017); Robert K. JaedickeProfessor of Accounting, StanfordUniversity Graduate School ofBusiness (2001-2017); Professor ofLaw (by courtesy), Stanford LawSchool (2005-2017); Senior AssociateDean for Academic Affairs and Headof MBA Program, Stanford UniversityGraduate School of Business(2010-2016).

Director of iShares, Inc. (since 2011);Trustee of iShares U.S. ETF Trust(since 2011); Director, Cavium, Inc.(since 2013).



iSHARES® TRUST

Officers



During the Past 5 Years

Martin Small (42) President(since 2016).

Managing Director, BlackRock, Inc. (since 2010); Head of U.S. iShares (since2015); Co-Head of the U.S. Financial Markets Advisory Group, BlackRock, Inc.(2008-2014).

Jack Gee (58) Treasurer andChief FinancialOfficer(since 2008).

Managing Director, BlackRock, Inc. (since 2009); Senior Director of FundAdministration of Intermediary Investor Business, BGI (2009).

Benjamin Archibald (42) Secretary(since 2015).

Managing Director, BlackRock, Inc. (since 2014); Director, BlackRock, Inc.(2010-2013): Secretary of the BlackRock-advised mutual funds (since 2012).

Alan Mason (56) Executive VicePresident(since 2016).

Managing Director, BlackRock, Inc. (since 2009).

Steve Messinger (55) Executive VicePresident(since 2016).

Managing Director, BlackRock, Inc. (2007-2014 and since 2016); ManagingDirector, Beacon Consulting Group (2014-2016).

Charles Park (50) Chief ComplianceOfficer(since 2006).

Chief Compliance Officer of BlackRock Advisors, LLC and the BlackRock-advisedFunds in the Equity-Bond Complex, the Equity-Liquidity Complex and theClosed-End Complex (since 2014); Chief Compliance Officer of BFA (since 2006).

Scott Radell (48) Executive VicePresident(since 2012).

Managing Director, BlackRock, Inc. (since 2009); Head of Portfolio Solutions,BlackRock, Inc. (since 2009).

T R U S T E E A N D O F F I C E R I N F O R M A T I O N 43

Notes:


Notes:

N O T E S 45

Notes:


For more information visit www.iShares.com or call 1-800-iShares (1-800-474-2737)

This report is intended for the Fund’s 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 JPMorgan Chase & Co., nor does this company make any representationregarding the advisability of investing in the iShares Funds. BlackRock is not affiliated with the company listed above.

A description of the policies that the Fund uses to determine how to vote proxies relating to portfolio securities and information about how the Fund votedproxies relating to portfolio securities during the most recent twelve-month period ending June 30 is available without charge, upon request, by calling toll-free 1-800-474-2737; on the Fund’s website at www.iShares.com; and on the U.S. Securities and Exchange Commission (SEC) website at www.sec.gov.

The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Fund’s FormsN-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 theoperation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The Fund also discloses its complete schedule of portfolio holdings ona daily basis on the Fund’s website.

©2017 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks arethe property of their respective owners.iS

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