MARCH 31, 2016
2016 ANNUAL REPORT
iShares Trust
쑺
iShares Russell Top 200 ETF | IWL | NYSE Arca
쑺
iShares Russell Top 200 Growth ETF | IWY | NYSE Arca
쑺
iShares Russell Top 200 Value ETF | IWX | NYSE Arca
쑺
iShares Russell 1000 ETF | IWB | NYSE Arca
쑺
iShares Russell 1000 Growth ETF | IWF | NYSE Arca
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iShares Russell 1000 Value ETF | IWD | NYSE Arca
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iShares Russell 2000 ETF | IWM | NYSE Arca
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iShares Russell 2000 Growth ETF | IWO | NYSE Arca
Table of Contents
Management’s Discussions of Fund Performance . . . 5
About Fund Performance . . . 24
Shareholder Expenses . . . 24
Schedules of Investments . . . 25
iShares Russell Top 200 ETF . . . 25
iShares Russell Top 200 Growth ETF . . . 29
iShares Russell Top 200 Value ETF . . . 33
iShares Russell 1000 ETF (Summary) . . . 36
iShares Russell 1000 Growth ETF (Summary) . . . 40
iShares Russell 1000 Value ETF (Summary) . . . 44
iShares Russell 2000 ETF (Summary) . . . 48
iShares Russell 2000 Growth ETF (Summary) . . . 53
iShares Russell 2000 Value ETF (Summary) . . . 58
Financial Statements . . . 63
Financial Highlights . . . 74
Notes to Financial Statements . . . 83
Report of Independent Registered Public Accounting Firm . . . 104
Tax Information . . . 105
Supplemental Information . . . 106
Management’s Discussion of Fund Performance
iSHARES
®TRUST
U.S EQUITY MARKET OVERVIEW
The U.S. equity market declined fractionally for the 12 months ended March 31, 2016 (the “reporting period”). The Russell 3000® Index, a broad U.S. equity index, returned -0.34% for the reporting period.
The relatively flat U.S. equity market performance reflected an inconsistent and uncertain economic environment. Overall, the U.S. economy grew by 2.4% in 2015, matching its growth rate for 2014, but this moderate level of growth masked significant quarter-to-quarter volatility. After a weak first quarter, the economy rebounded sharply in the second quarter before gradually slowing over the final two quarters of the year. In the first quarter of 2016, modest consumer spending and weak global growth signaled that the economic slowdown had extended into the New Year. Employment growth was consistently robust during the reporting period, sending the unemployment rate down to an eight-year low. In contrast, industrial production contracted during the reporting period, while consumer spending remained muted despite a sharp decline in energy prices. In that environment, overall corporate earnings growth was relatively flat, reflecting intense competition for marginal demand.
Inflation generally remained modest, with the consumer price index rising by 1.0% for the reporting period. Falling commodities prices, including a decline of 26% in the price of oil, contributed to the subdued inflation rate.
Mixed economic data and a lack of inflationary pressure kept the U.S. Federal Reserve Bank (the “Fed”) in check for much of the reporting period. Despite initial indications that the Fed planned to raise its short-term interest rate target in mid-2015, the Fed held off until December, when it implemented its first interest rate increase since June 2006. The Fed’s rate hike increased the federal funds target rate from a range of 0%-0.25% to a range of 0.25%-0.50%, ending a seven-year period of near-zero interest rates.
Stocks generally followed the contours of the economy for the reporting period, as gains in the first half of the reporting period faded amid volatility in the second half of the reporting period. In the slow growth environment, investors generally bid up stocks with higher growth rates, contributing to the outperformance of growth-oriented stocks over value-oriented equities during the reporting period. A relatively small number of large companies led the broad market, which meant the largest U.S. stocks outperformed small and mid-sized equities.
The economic uncertainty in the second half of the reporting period led to periods of risk aversion and negative performance. Slowing growth in China sent the first shockwave through global markets in August 2015, followed by fear of defaults by commodity-related companies in early 2016. That led to broad-based risk aversion, which drove sector performance for the reporting period. Energy stocks were the worst performing sector, as a supply glut in oil and gas drove down energy prices. Similarly, commodity-related stocks in various sectors struggled due to weakness in commodities prices.
Overall, some of the most economically sensitive sectors — financials and materials — delivered disappointing results, while some of the least economically sensitive sectors — telecommunication services, utilities, and consumer staples — posted positive returns. The healthcare sector, which had been buoyed by a virtuous cycle of innovation, growth, and acquisition, declined as investors took profits when pharmaceuticals pricing came under scrutiny. However, investors’ appetite for faster growth helped the information technology sector as many companies in the sector continued to deliver robust earnings growth.
iSHARES
®RUSSELL TOP 200 ETF
Performance as of March 31, 2016Average Annual Total Returns Cumulative Total Returns
NAV MARKET INDEX NAV MARKET INDEX
1 Year 2.40% 2.40% 2.55% 2.40% 2.40% 2.55%
5 Years 11.60% 11.59% 11.80% 73.13% 72.99% 74.65%
Since Inception 12.45% 12.45% 12.65% 114.98% 115.02% 117.47%
G R O W T H O F $ 1 0 , 0 0 0 I N V E S T M E N T ( S I N C E I N C E P T I O N A T N E T A S S E T V A L U E )
$21,498 $21,747
$8,000 $10,000 $12,000 $14,000 $16,000 $20,000 $22,000
$18,000 $24,000
Mar 16 Mar 10 Mar 11 Mar 12 Mar 13 Mar 14 Mar 15
Index Fund
The inception date of the Fund was 9/22/09. The first day of secondary market trading was 9/25/09.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 24 for more information.
Shareholder Expenses
Actual Hypothetical 5% Return
Beginning Account Value (10/1/15)
Ending Account Value (3/31/16)
Expenses Paid During Perioda
Beginning Account Value (10/1/15)
Ending Account Value (3/31/16)
Expenses Paid During Perioda
Annualized Expense Ratio
$ 1,000.00 $ 1,084.10 $ 0.78 $ 1,000.00 $ 1,024.30 $ 0.76 0.15%
aExpenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied
by the number of days in the period (183 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 24 for more information.
Management’s Discussion of Fund Performance
(Continued)iSHARES
®RUSSELL TOP 200 ETF
The iShares Russell Top 200 ETF (the “Fund”) seeks to track the investment results of an index composed of large-capitalization U.S. equities, as represented by the Russell Top 200®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 March 31, 2016, the total return for the Fund was 2.40%, net of fees, while the total return for the Index was 2.55%.
As represented by the Index, large-capitalization U.S. stocks posted a modest positive return for the reporting period.
Six of the ten sectors in the Index delivered positive results for the reporting period. The information technology sector was the largest contributor to Index performance. Robust growth in smartphone usage, cloud computing, and online security helped fuel the positive returns in the information technology sector. Software and services companies led the sector’s advance, while technology hardware and equipment stocks fell for the reporting period.
The consumer discretionary sector posted a solid contribution to the Index’s return for the reporting period, even though retail sales remained sluggish despite strong job growth, low interest rates, and declining energy prices. Economic uncertainty drove up stock prices in the food, beverage, and tobacco industry as investors gravitated toward the industry’s relatively stable revenues. At the other end of the spectrum, the energy sector was the largest detractor from the Index’s return for the reporting period, as oil and gas prices declined by approximately 24% and 38%, respectively. Energy markets continued to struggle with slowing demand and oversupply, forcing U.S. energy companies to downsize through capital spending cuts and layoffs.
The financials and healthcare sectors also produced negative overall returns for the reporting period. Low net interest margins and heightened market volatility weighed on the financials sector, while the healthcare sector was beset by profit taking amid relatively high valuations.
ALLOCATION BY SECTOR As of 3/31/16
Sector
Percentage of Total Investments*
Information Technology 22.74%
Health Care 15.58
Financials 13.94
Consumer Discretionary 12.28
Consumer Staples 11.02
Industrials 9.76
Energy 7.19
Telecommunication Services 3.27
Materials 2.17
Utilities 2.05
TOTAL 100.00%
TEN LARGEST FUND HOLDINGS As of 3/31/16
Security
Percentage of Total Investments*
Apple Inc. 4.37%
Microsoft Corp. 3.11
Exxon Mobil Corp. 2.43
Johnson & Johnson 2.09
General Electric Co. 2.08
Berkshire Hathaway Inc. Class B 1.84
Facebook Inc. Class A 1.72
AT&T Inc. 1.66
Amazon.com Inc. 1.58
Wells Fargo & Co. 1.57
TOTAL 22.45%
iSHARES
®RUSSELL TOP 200 GROWTH ETF
Performance as of March 31, 2016Average Annual Total Returns Cumulative Total Returns
NAV MARKET INDEX NAV MARKET INDEX
1 Year 5.52% 5.56% 5.74% 5.52% 5.56% 5.74%
5 Years 13.19% 13.20% 13.44% 85.81% 85.88% 87.85%
Since Inception 14.21% 14.22% 14.46% 137.94% 138.02% 141.32%
G R O W T H O F $ 1 0 , 0 0 0 I N V E S T M E N T ( S I N C E I N C E P T I O N A T N E T A S S E T V A L U E )
$23,794 $24,132
$8,000 $10,000 $12,000 $14,000 $16,000 $20,000 $22,000
$18,000 $26,000 $24,000
Mar 16 Mar 10 Mar 11 Mar 12 Mar 13 Mar 14 Mar 15
Index Fund
The inception date of the Fund was 9/22/09. The first day of secondary market trading was 9/25/09.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 24 for more information.
Shareholder Expenses
Actual Hypothetical 5% Return
Beginning Account Value (10/1/15)
Ending Account Value (3/31/16)
Expenses Paid During Perioda
Beginning Account Value (10/1/15)
Ending Account Value (3/31/16)
Expenses Paid During Perioda
Annualized Expense Ratio
$ 1,000.00 $ 1,093.80 $ 1.05 $ 1,000.00 $ 1,024.00 $ 1.01 0.20%
aExpenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied
by the number of days in the period (183 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 24 for more information.
Management’s Discussion of Fund Performance
(Continued)iSHARES
®RUSSELL TOP 200 GROWTH ETF
TheiShares Russell Top 200 Growth ETF(the “Fund”) seeks to track the investment results of an index composed of large-capitalization U.S. equities that exhibit growth characteristics, as represented by the Russell Top 200®Growth 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 March 31, 2016, the total return for the Fund was 5.52%, net of fees, while the total return for the Index was 5.74%.
As represented by the Index, large-capitalization U.S. growth stocks posted a modest positive return for the reporting period, outperforming most other capitalization and style segments of the U.S. equity market.
Six of the ten sectors in the Index posted positive results for the reporting period. The information technology sector was the largest contributor to Index performance. Robust growth in smartphone usage, cloud computing, and online security helped fuel the positive returns in the information technology sector. Software and services companies led the sector’s advance.
The consumer discretionary sector posted a solid contribution to the Index’s return for the reporting period, even though retail sales remained sluggish despite strong job growth, low interest rates, and declining energy prices. Economic uncertainty drove up stock prices in the food, beverage, and tobacco industry, as investors gravitated toward the industry’s relatively stable revenues. At the other end of the spectrum, the healthcare sector was the largest detractor from the Index’s return for the reporting period, reflecting profit taking amid relatively high valuations. The biotechnology and pharmaceuticals industries were hardest hit as the high prices of prescription drugs made headlines, resulting in pricing pressure and political scrutiny for the industries.
The energy sector was another large detractor from the Index’s performance as oil and gas prices declined by approximately 24% and 38%, respectively. Similarly, declining commodity prices and weak economic growth weighed on the industrials and materials sectors.
ALLOCATION BY SECTOR As of 3/31/16
Sector
Percentage of Total Investments*
Information Technology 31.93%
Consumer Discretionary 19.82
Health Care 16.67
Consumer Staples 13.12
Industrials 8.94
Telecommunication Services 3.17
Financials 3.06
Materials 2.89
Energy 0.37
Utilities 0.03
TOTAL 100.00%
TEN LARGEST FUND HOLDINGS As of 3/31/16
Security
Percentage of Total Investments*
Apple Inc. 8.30%
Microsoft Corp. 3.35
Facebook Inc. Class A 3.27
Amazon.com Inc. 2.99
Alphabet Inc. Class A 2.91
Alphabet Inc. Class C 2.90
Verizon Communications Inc. 2.71
Coca-Cola Co. (The) 2.41
Home Depot Inc. (The) 2.29
Walt Disney Co. (The) 2.23
TOTAL 33.36%
iSHARES
®RUSSELL TOP 200 VALUE ETF
Performance as of March 31, 2016Average Annual Total Returns Cumulative Total Returns
NAV MARKET INDEX NAV MARKET INDEX
1 Year (0.91)% (0.96)% (0.72)% (0.91)% (0.96)% (0.72)%
5 Years 9.87% 9.86% 10.12% 60.12% 60.00% 61.93%
Since Inception 10.56% 10.56% 10.80% 92.46% 92.45% 95.24%
G R O W T H O F $ 1 0 , 0 0 0 I N V E S T M E N T ( S I N C E I N C E P T I O N A T N E T A S S E T V A L U E )
$19,246 $19,524
$8,000 $10,000 $12,000 $14,000 $16,000 $20,000
$18,000 $22,000
Mar 16 Mar 10 Mar 11 Mar 12 Mar 13 Mar 14 Mar 15
Index Fund
The inception date of the Fund was 9/22/09. The first day of secondary market trading was 9/25/09.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 24 for more information.
Shareholder Expenses
Actual Hypothetical 5% Return
Beginning Account Value (10/1/15)
Ending Account Value (3/31/16)
Expenses Paid During Perioda
Beginning Account Value (10/1/15)
Ending Account Value (3/31/16)
Expenses Paid During Perioda
Annualized Expense Ratio
$ 1,000.00 $ 1,073.10 $ 1.04 $ 1,000.00 $ 1,024.00 $ 1.01 0.20%
aExpenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied
by the number of days in the period (183 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 24 for more information.
Management’s Discussion of Fund Performance
(Continued)iSHARES
®RUSSELL TOP 200 VALUE ETF
TheiShares Russell Top 200 Value ETF (the “Fund”) seeks to track the investment results of an index composed of large-capitalization U.S. equities that exhibit value characteristics, as represented by the Russell Top 200®Value 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 March 31, 2016, the total return for the Fund was -0.91%, net of fees, while the total return for the Index was -0.72%.
As represented by the Index, large-capitalization U.S. value stocks posted a modestly negative return for the reporting period as larger-capitalization stocks outperformed the broader market, while value stocks lagged growth stocks.
Just three of the ten sectors in the Index declined for the reporting period, but they included two of the Index’s largest sectors. The energy sector detracted the most from the Index’s return for the reporting period as oil and gas prices declined by approximately 24% and 38%, respectively. Energy markets continued to struggle with slowing demand and oversupply, forcing U.S. energy companies to downsize through capital spending cuts and layoffs.
The financials sector, the largest sector weighting in the Index, was also a significant detractor from Index performance. Banks continued to struggle with low net interest margins, while heightened market volatility and declining assets weighed on the performance of diversified financial services stocks. The other declining sector was consumer discretionary, which fell as retail sales remained sluggish despite strong job growth, low interest rates, and declining energy prices.
On the positive side, the industrials sector was the largest contributor to the Index’s return for the reporting period, even as global demand for manufactured goods eased amid slowing global economic growth and a stronger U.S. dollar. The telecommunication services and utilities sectors, which tend to be more stable and less economically sensitive, were also strong contributors to the Index’s return. Both sectors attracted investors seeking relatively high dividend yields and stable revenues.
ALLOCATION BY SECTOR As of 3/31/16
Sector
Percentage of Total Investments*
Financials 26.03%
Energy 14.75
Health Care 14.37
Information Technology 12.53
Industrials 10.67
Consumer Staples 8.69
Utilities 4.29
Consumer Discretionary 3.91
Telecommunication Services 3.38
Materials 1.38
TOTAL 100.00%
TEN LARGEST FUND HOLDINGS As of 3/31/16
Security
Percentage of Total Investments*
Exxon Mobil Corp. 5.14%
General Electric Co. 4.40
Johnson & Johnson 3.84
Berkshire Hathaway Inc. Class B 3.63
Wells Fargo & Co. 3.31
Procter & Gamble Co. (The) 3.28
JPMorgan Chase & Co. 3.23
AT&T Inc. 2.99
Microsoft Corp. 2.85
Pfizer Inc. 2.68
TOTAL 35.35%
iSHARES
®RUSSELL 1000 ETF
Performance as of March 31, 2016Average Annual Total Returns Cumulative Total Returns
NAV MARKET INDEX NAV MARKET INDEX
1 Year 0.41% 0.44% 0.50% 0.41% 0.44% 0.50%
5 Years 11.21% 11.21% 11.35% 70.13% 70.11% 71.18%
10 Years 6.95% 6.94% 7.06% 95.72% 95.62% 97.78%
G R O W T H O F $ 1 0 , 0 0 0 I N V E S T M E N T ( A T N E T A S S E T V A L U E )
$19,572 $19,778
$4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $20,000 $18,000 $22,000
Mar 16 Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 Mar 12 Mar 13 Mar 14 Mar 15
Index Fund
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 24 for more information.
Shareholder Expenses
Actual Hypothetical 5% Return
Beginning Account Value (10/1/15)
Ending Account Value (3/31/16)
Expenses Paid During Perioda
Beginning Account Value (10/1/15)
Ending Account Value (3/31/16)
Expenses Paid During Perioda
Annualized Expense Ratio
$ 1,000.00 $ 1,077.00 $ 0.78 $ 1,000.00 $ 1,024.30 $ 0.76 0.15%
aExpenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied
by the number of days in the period (183 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 24 for more information.
Management’s Discussion of Fund Performance
(Continued)iSHARES
®RUSSELL 1000 ETF
The iShares Russell 1000 ETF(the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization U.S. equities, as represented by the Russell 1000®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 March 31, 2016, the total return for the Fund was 0.41%, net of fees, while the total return for the Index was 0.50%. As represented by the Index, large- and mid-capitalization U.S. stocks posted a relatively flat return for the reporting period. Six of the ten sectors in the Index delivered positive results for the reporting period. The information technology sector, the largest sector weighting in the Index, contributed the most to Index performance. Robust growth in smartphone usage, cloud computing, and online security helped fuel the positive returns in the information technology sector.
Consumer-based stocks were also among the largest contributors to the Index’s return. In the consumer staples sector, economic uncertainty drove up stock prices in the food, beverage, and tobacco industry, as investors gravitated toward the industry’s relatively stable revenues. The consumer discretionary sector also posted a solid contribution to the Index’s return for the reporting period, even though retail sales remained sluggish despite strong job growth, low interest rates, and declining energy prices.
At the other end of the spectrum, the energy sector produced negative overall returns for the reporting period as oil and gas prices declined by approximately 24% and 38%, respectively. Energy markets continued to struggle with slowing demand and oversupply, forcing U.S. energy companies to downsize through capital spending cuts and layoffs.
The financials and healthcare sectors also produced negative overall returns for the reporting period. Low net interest margins and heightened market volatility weighed on the financials sector, while the healthcare sector was beset by profit taking amid relatively high valuations.
ALLOCATION BY SECTOR As of 3/31/16
Sector
Percentage of Total Investments*
Information Technology 20.24%
Financials 16.50
Health Care 13.66
Consumer Discretionary 13.56
Industrials 10.71
Consumer Staples 9.65
Energy 6.45
Utilities 3.43
Materials 3.19
Telecommunication Services 2.61
TOTAL 100.00%
TEN LARGEST FUND HOLDINGS As of 3/31/16
Security
Percentage of Total Investments*
Apple Inc. 3.09%
Microsoft Corp. 2.20
Exxon Mobil Corp. 1.72
Johnson & Johnson 1.47
General Electric Co. 1.47
Berkshire Hathaway Inc. Class B 1.30
Facebook Inc. Class A 1.21
AT&T Inc. 1.17
Amazon.com Inc. 1.11
Wells Fargo & Co. 1.11
TOTAL 15.85%
iSHARES
®RUSSELL 1000 GROWTH ETF
Performance as of March 31, 2016Average Annual Total Returns Cumulative Total Returns
NAV MARKET INDEX NAV MARKET INDEX
1 Year 2.34% 2.36% 2.52% 2.34% 2.36% 2.52%
5 Years 12.17% 12.17% 12.38% 77.57% 77.56% 79.23%
10 Years 8.09% 8.09% 8.28% 117.76% 117.65% 121.63%
G R O W T H O F $ 1 0 , 0 0 0 I N V E S T M E N T ( A T N E T A S S E T V A L U E )
$21,776 $22,163
$4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $20,000 $18,000 $24,000 $22,000
Mar 16 Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 Mar 12 Mar 13 Mar 14 Mar 15
Index Fund
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 24 for more information.
Shareholder Expenses
Actual Hypothetical 5% Return
Beginning Account Value (10/1/15)
Ending Account Value (3/31/16)
Expenses Paid During Perioda
Beginning Account Value (10/1/15)
Ending Account Value (3/31/16)
Expenses Paid During Perioda
Annualized Expense Ratio
$ 1,000.00 $ 1,080.20 $ 1.04 $ 1,000.00 $ 1,024.00 $ 1.01 0.20%
aExpenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied
by the number of days in the period (183 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 24 for more information.
Management’s Discussion of Fund Performance
(Continued)iSHARES
®RUSSELL 1000 GROWTH ETF
TheiShares Russell 1000 Growth ETF(the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization U.S. equities that exhibit growth characteristics, as represented by the Russell 1000® Growth 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 March 31, 2016, the total return for the Fund was 2.34%, net of fees, while the total return for the Index was 2.52%.
As represented by the Index, large- and mid-capitalization U.S. growth stocks posted a modest positive return for the reporting period. Within the Russell 1000®Index, growth stocks outperformed value stocks.
Half of the sectors in the Index contributed to performance for the reporting period, led by the information technology sector. The gains in the information technology sector were driven in part by the outsized returns of several of the largest stocks in the sector. However, robust growth in smartphone usage, cloud computing, and online security also helped fuel the positive returns in the information technology sector.
Consumer-based stocks were also among the largest contributors to the Index’s return. Economic uncertainty drove up stock prices in the food, beverage, and tobacco industry, as investors gravitated toward the industry’s relatively stable revenues. The consumer discretionary sector also posted a solid contribution to the Index’s return, even though retail sales remained sluggish despite strong job growth, low interest rates, and declining energy prices.
At the other end of the spectrum, the healthcare sector was the largest detractor from the Index’s performance for the reporting period, reflecting profit taking amid relatively high valuations. The biotechnology and pharmaceuticals industries were hardest hit as the high prices of prescription drugs made headlines, resulting in pricing pressure and political scrutiny for the industries. The energy sector also produced negative returns for the reporting period as oil and gas prices declined by approximately 24% and 38%, respectively. Similarly, declining commodity prices and weak economic growth weighed on the industrials and materials sectors.
ALLOCATION BY SECTOR As of 3/31/16
Sector
Percentage of Total Investments*
Information Technology 28.31%
Consumer Discretionary 21.31
Health Care 15.51
Consumer Staples 11.77
Industrials 11.03
Financials 5.61
Materials 3.51
Telecommunication Services 2.39
Energy 0.51
Utilities 0.05
TOTAL 100.00%
TEN LARGEST FUND HOLDINGS As of 3/31/16
Security
Percentage of Total Investments*
Apple Inc. 5.97%
Microsoft Corp. 2.41
Facebook Inc. Class A 2.35
Amazon.com Inc. 2.15
Alphabet Inc. Class A 2.09
Alphabet Inc. Class C 2.08
Verizon Communications Inc. 1.95
Coca-Cola Co. (The) 1.73
Home Depot Inc. (The) 1.65
Walt Disney Co. (The) 1.60
TOTAL 23.98%
iSHARES
®RUSSELL 1000 VALUE ETF
Performance as of March 31, 2016Average Annual Total Returns Cumulative Total Returns
NAV MARKET INDEX NAV MARKET INDEX
1 Year (1.66)% (1.65)% (1.54)% (1.66)% (1.65)% (1.54)%
5 Years 10.04% 10.03% 10.25% 61.31% 61.27% 62.86%
10 Years 5.56% 5.56% 5.72% 71.80% 71.81% 74.37%
G R O W T H O F $ 1 0 , 0 0 0 I N V E S T M E N T ( A T N E T A S S E T V A L U E )
$17,437 $17,180
$4,000 $6,000 $8,000 $10,000 $20,000
$12,000 $14,000 $16,000 $18,000
Index Fund
Mar 16 Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 Mar 12 Mar 13 Mar 14 Mar 15
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 24 for more information.
Shareholder Expenses
Actual Hypothetical 5% Return
Beginning Account Value (10/1/15)
Ending Account Value (3/31/16)
Expenses Paid During Perioda
Beginning Account Value (10/1/15)
Ending Account Value (3/31/16)
Expenses Paid During Perioda
Annualized Expense Ratio
$ 1,000.00 $ 1,072.80 $ 1.04 $ 1,000.00 $ 1,024.00 $ 1.01 0.20%
aExpenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied
by the number of days in the period (183 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 24 for more information.
Management’s Discussion of Fund Performance
(Continued)iSHARES
®RUSSELL 1000 VALUE ETF
TheiShares Russell 1000 Value ETF(the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization U.S. equities that exhibit value characteristics, as represented by the Russell 1000®Value 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 March 31, 2016, the total return for the Fund was -1.66%, net of fees, while the total return for the Index was -1.54%.
As represented by the Index, large- and mid- capitalization U.S. value stocks declined for the reporting period. Within the Russell 1000®Index, value stocks underperformed growth stocks.
Half of the sectors in the Index detracted from performance for the reporting period. The energy sector was the largest detractor from the Index’s return as oil and gas prices declined by approximately 24% and 38%, respectively. Energy markets continued to face slowing demand and oversupply, forcing U.S. energy companies to downsize through capital spending cuts and layoffs. The financials sector was another significant detractor from the Index’s return for the reporting period. Banks continued to struggle with low net interest margins, while heightened market volatility and declining assets weighed on the performance of diversified financial services stocks. Another notable detractor was the consumer discretionary sector, which fell as retail sales remained sluggish despite strong job growth, low interest rates, and declining energy prices.
At the other end of the spectrum, the utilities sector, which tends to be less economically sensitive, was the largest contributor to the Index’s return for the reporting period. Investors were attracted to the relatively high dividend yields and stable revenues in the utilities sector. The industrials sector also produced positive overall returns for the reporting period, even as global demand for manufactured goods eased amid slowing global economic growth and a stronger U.S. dollar. The remaining contributors to Index performance included the information technology, telecommunication services, and consumer staples sectors.
ALLOCATION BY SECTOR As of 3/31/16
Sector
Percentage of Total Investments*
Financials 28.14%
Energy 12.80
Health Care 11.68
Information Technology 11.60
Industrials 10.37
Consumer Staples 7.37
Utilities 7.05
Consumer Discretionary 5.28
Telecommunication Services 2.86
Materials 2.85
TOTAL 100.00%
TEN LARGEST FUND HOLDINGS As of 3/31/16
Security
Percentage of Total Investments*
Exxon Mobil Corp. 3.55%
General Electric Co. 3.03
Johnson & Johnson 2.65
Berkshire Hathaway Inc. Class B 2.50
Wells Fargo & Co. 2.29
Procter & Gamble Co. (The) 2.27
JPMorgan Chase & Co. 2.23
AT&T Inc. 2.06
Microsoft Corp. 1.96
Pfizer Inc. 1.85
TOTAL 24.39%
iSHARES
®RUSSELL 2000 ETF
Performance as of March 31, 2016Average Annual Total Returns Cumulative Total Returns
NAV MARKET INDEX NAV MARKET INDEX
1 Year (9.67)% (9.72)% (9.76)% (9.67)% (9.72)% (9.76)%
5 Years 7.25% 7.25% 7.20% 41.91% 41.91% 41.59%
10 Years 5.29% 5.28% 5.26% 67.41% 67.31% 66.93%
G R O W T H O F $ 1 0 , 0 0 0 I N V E S T M E N T ( A T N E T A S S E T V A L U E )
$16,741 $16,693
$4,000 $6,000 $8,000 $10,000 $20,000
$12,000 $14,000 $16,000 $18,000
Index Fund
Mar 16 Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 Mar 12 Mar 13 Mar 14 Mar 15
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 24 for more information.
Shareholder Expenses
Actual Hypothetical 5% Return
Beginning Account Value (10/1/15)
Ending Account Value (3/31/16)
Expenses Paid During Perioda
Beginning Account Value (10/1/15)
Ending Account Value (3/31/16)
Expenses Paid During Perioda
Annualized Expense Ratio
$ 1,000.00 $ 1,021.00 $ 1.01 $ 1,000.00 $ 1,024.00 $ 1.01 0.20%
aExpenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied
by the number of days in the period (183 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 24 for more information.
Management’s Discussion of Fund Performance
(Continued)iSHARES
®RUSSELL 2000 ETF
TheiShares Russell 2000 ETF(the “Fund”) seeks to track the investment results of an index composed of small-capitalization U.S. equities, as represented by the Russell 2000®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 March 31, 2016, the total return for the Fund was -9.67%, net of fees, while the total return for the Index was -9.76%.
As represented by the Index, small-capitalization U.S. stocks declined for the reporting period. Based on the Russell indexes, small-capitalization stocks underperformed both large- and mid-capitalization stocks for the reporting period.
Seven of the ten sectors in the Index declined for the reporting period. The healthcare sector had the most significant negative impact on Index performance, reflecting profit taking amid relatively high valuations. The biotechnology and pharmaceuticals industries were hardest hit as the high prices of prescription drugs made headlines, resulting in pricing pressure and political scrutiny for the industries.
The consumer discretionary and energy sectors were also meaningful detractors from Index performance. Retail sales remained sluggish despite strong job growth, low interest rates, and declining energy prices, putting downward pressure on the consumer discretionary sector. The energy sector continued to struggle with sharp declines in oil and gas prices as slowing demand and oversupply forced U.S. energy companies to downsize through capital spending cuts and layoffs.
Slowing global demand also weighed on the industrials and materials sectors. Aerospace and defense stocks were the biggest detractors in the industrials sector, while chemicals producers fell the most among materials stocks.
The three sectors in the Index with positive returns were utilities, telecommunication services, and consumer staples. The telecommunication services and utilities sectors, which tend to be less economically sensitive, offered relatively high dividend yields and steady revenues. In the consumer staples sector, economic uncertainty drove up stock prices in the food, beverage, and tobacco industry, as investors gravitated toward the industry’s relatively stable revenues.
ALLOCATION BY SECTOR As of 3/31/16
Sector
Percentage of Total Investments*
Financials 26.05%
Information Technology 18.01
Consumer Discretionary 13.92
Health Care 13.80
Industrials 12.95
Utilities 4.26
Materials 3.87
Consumer Staples 3.64
Energy 2.61
Telecommunication Services 0.89
TOTAL 100.00%
TEN LARGEST FUND HOLDINGS As of 3/31/16
Security
Percentage of Total Investments*
STERIS PLC (United Kingdom) 0.37%
CubeSmart 0.36
West Pharmaceutical Services Inc. 0.31
TreeHouse Foods Inc. 0.30
Vail Resorts Inc. 0.30
Piedmont Natural Gas Co. Inc. 0.29
MarketAxess Holdings Inc. 0.28
Sovran Self Storage Inc. 0.28
Highwoods Properties Inc. 0.28
Casey’s General Stores Inc. 0.27
TOTAL 3.04%
iSHARES
®RUSSELL 2000 GROWTH ETF
Performance as of March 31, 2016Average Annual Total Returns Cumulative Total Returns
NAV MARKET INDEX NAV MARKET INDEX
1 Year (11.67)% (11.70)% (11.84)% (11.67)% (11.70)% (11.84)%
5 Years 7.84% 7.83% 7.70% 45.85% 45.79% 44.88%
10 Years 6.05% 6.06% 6.00% 80.00% 80.04% 79.13%
G R O W T H O F $ 1 0 , 0 0 0 I N V E S T M E N T ( A T N E T A S S E T V A L U E )
$17,913 $18,000
$4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $20,000 $18,000 $22,000
Mar 16 Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 Mar 12 Mar 13 Mar 14 Mar 15
Index Fund
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 24 for more information.
Shareholder Expenses
Actual Hypothetical 5% Return
Beginning Account Value (10/1/15)
Ending Account Value (3/31/16)
Expenses Paid During Perioda
Beginning Account Value (10/1/15)
Ending Account Value (3/31/16)
Expenses Paid During Perioda
Annualized Expense Ratio
$ 1,000.00 $ 995.80 $ 1.25 $ 1,000.00 $ 1,023.80 $ 1.26 0.25%
aExpenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied
by the number of days in the period (183 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 24 for more information.
Management’s Discussion of Fund Performance
(Continued)iSHARES
®RUSSELL 2000 GROWTH ETF
The iShares Russell 2000 Growth ETF (the “Fund”) seeks to track the investment results of an index composed of small-capitalization U.S. equities that exhibit growth characteristics, as represented by the Russell 2000®Growth 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 March 31, 2016, the total return for the Fund was -11.67%, net of fees, while the total return for the Index was -11.84%.
As represented by the Index, small-capitalization U.S. growth stocks declined for the reporting period. Based on the Russell indexes, small-capitalization stocks underperformed both large- and mid-capitalization stocks for the reporting period. Within the Russell 2000®Index, growth stocks underperformed value stocks.
Seven of the ten sectors in the Index declined for the reporting period. The healthcare sector had the most significant negative impact on Index performance, reflecting profit taking amid relatively high valuations. The biotechnology and pharmaceuticals industries were hardest hit as the high prices of prescription drugs made headlines, resulting in pricing pressure and political scrutiny for the industries. The healthcare sector accounted for approximately half of the Index’s negative return for the reporting period.
The consumer discretionary and information technology sectors were also meaningful detractors from Index performance. Retail sales remained sluggish despite strong job growth, low interest rates, and declining energy prices, putting downward pressure on the consumer discretionary sector. The decline in the information technology sector was driven in part by weaker demand for personal computers.
Slowing global demand also weighed on the energy and industrials sectors of the Index. The energy sector continued to struggle with sharp declines in oil and gas prices, while industrials stocks fell as slowing global economic growth and a stronger U.S. dollar reduced demand for manufactured goods.
The three sectors in the Index with positive returns were telecommunication services, financials, and utilities. The telecommunication services and utilities sectors, which tend to be less economically sensitive, benefited from their relatively high dividend yields and steady revenues. Banks and real estate investment trusts contributed to the financials sector’s positive overall return.
ALLOCATION BY SECTOR As of 3/31/16
Sector
Percentage of Total Investments*
Information Technology 25.61%
Health Care 23.79
Consumer Discretionary 18.08
Industrials 14.10
Financials 8.45
Materials 4.31
Consumer Staples 3.66
Energy 1.00
Telecommunication Services 0.89
Utilities 0.11
TOTAL 100.00%
TEN LARGEST FUND HOLDINGS As of 3/31/16
Security
Percentage of Total Investments*
STERIS PLC (United Kingdom) 0.76%
West Pharmaceutical Services Inc. 0.63
Vail Resorts Inc. 0.61
MarketAxess Holdings Inc. 0.58
CubeSmart 0.57
Casey’s General Stores Inc. 0.55
Tyler Technologies Inc. 0.54
Manhattan Associates Inc. 0.53
WellCare Health Plans Inc. 0.51
Sovran Self Storage Inc. 0.51
TOTAL 5.79%
iSHARES
®RUSSELL 2000 VALUE ETF
Performance as of March 31, 2016Average Annual Total Returns Cumulative Total Returns
NAV MARKET INDEX NAV MARKET INDEX
1 Year (7.76)% (7.81)% (7.72)% (7.76)% (7.81)% (7.72)%
5 Years 6.56% 6.55% 6.67% 37.37% 37.35% 38.07%
10 Years 4.32% 4.33% 4.42% 52.69% 52.73% 54.14%
G R O W T H O F $ 1 0 , 0 0 0 I N V E S T M E N T ( A T N E T A S S E T V A L U E )
$15,269 $15,414
$4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000
Mar 16 Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 Mar 12 Mar 13 Mar 14 Mar 15
Index Fund
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 24 for more information.
Shareholder Expenses
Actual Hypothetical 5% Return
Beginning Account Value (10/1/15)
Ending Account Value (3/31/16)
Expenses Paid During Perioda
Beginning Account Value (10/1/15)
Ending Account Value (3/31/16)
Expenses Paid During Perioda
Annualized Expense Ratio
$ 1,000.00 $ 1,046.50 $ 1.28 $ 1,000.00 $ 1,023.80 $ 1.26 0.25%
aExpenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied
by the number of days in the period (183 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 24 for more information.
Management’s Discussion of Fund Performance
(Continued)iSHARES
®RUSSELL 2000 VALUE ETF
The iShares Russell 2000 Value ETF (the “Fund”) seeks to track the investment results of an index composed of small-capitalization U.S. equities that exhibit value characteristics, as represented by the Russell 2000®Value 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 March 31, 2016, the total return for the Fund was -7.76%, net of fees, while the total return for the Index was -7.72%.
As represented by the Index, small-capitalization U.S. value stocks declined for the reporting period. Based on the Russell indexes, small-capitalization stocks underperformed both large- and mid-capitalization stocks for the reporting period. Within the Russell 2000®Index, value stocks outperformed growth stocks.
Eight of the ten sectors in the Index declined for the reporting period. The energy sector detracted the most from Index performance as oil and gas prices declined by 24% and 38%, respectively. Energy markets continued to struggle with slowing demand and oversupply, forcing U.S. energy companies to downsize through capital spending cuts and layoffs.
The consumer discretionary and financials sectors were also meaningful detractors from Index performance. Retail sales remained sluggish despite strong job growth, low interest rates, and declining energy prices, putting downward pressure on the consumer discretionary sector. Meanwhile, real estate investment trusts and diversified financial services firms led the overall decline in the financials sector.
Slowing global demand weighed on both the industrials and materials sectors. Aerospace and defense stocks were the biggest detractors in the industrials sector, while chemicals producers fell the most among materials stocks.
The only two sectors in the Index with positive returns were utilities and consumer staples, both of which tend to be more stable and less economically sensitive. The utilities sector’s relatively high dividend yields and steady revenues were attractive to investors amid the uncertain economic outlook. In the consumer staples sector, economic uncertainty drove up stock prices in the food, beverage, and tobacco industry, as investors gravitated toward the industry’s relatively stable revenues.
ALLOCATION BY SECTOR As of 3/31/16
Sector
Percentage of Total Investments*
Financials 43.02%
Industrials 11.83
Information Technology 10.72
Consumer Discretionary 9.93
Utilities 8.23
Health Care 4.18
Energy 4.13
Consumer Staples 3.62
Materials 3.45
Telecommunication Services 0.89
TOTAL 100.00%
TEN LARGEST FUND HOLDINGS As of 3/31/16
Security
Percentage of Total Investments*
TreeHouse Foods Inc. 0.59%
Piedmont Natural Gas Co. Inc. 0.56
Highwoods Properties Inc. 0.54
Post Holdings Inc. 0.51
First American Financial Corp. 0.50
Investors Bancorp. Inc. 0.46
EPR Properties 0.46
IDACORP Inc. 0.45
WGL Holdings Inc. 0.43
Gramercy Property Trust 0.42
TOTAL 4.92%
Past performance is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at www.ishares.com. Performance results assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. The investment return and principal value of shares will vary with changes in market conditions. Shares may be worth more or less than their original cost when they are redeemed or sold in the market. Performance for certain funds may reflect a waiver of a portion of investment advisory fees. Without such a waiver, performance would have been lower.
Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Certain funds may have a NAV which is determined prior to the opening of regular trading on its listed exchange and their market returns are calculated using the midpoint of the bid/ask spread as of the opening of regular trading on the exchange. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.
Shareholder Expenses
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares and (2) ongoing costs, including management fees and other fund expenses. The expense example, which is based on an investment of$1,000 invested on October 1, 2015 and held through March 31, 2016, is intended to help you understand your ongoing costs (in dollars and cents) of investing in a Fund and to compare these costs with the ongoing costs of investing in other funds.
Actual Expenses — The table provides information about actual account values and actual expenses. Annualized expense ratios reflect contractual and voluntary fee waivers, if any. To estimate the expenses that you paid on your account over the period, simply divide your account value by$1,000 (for example, an$8,600 account value divided by$1,000 = 8.6), then multiply the result by the number corresponding to your Fund under the heading entitled “Expenses Paid During Period.”
Hypothetical Example for Comparison Purposes— The table also provides information about hypothetical account values and hypothetical expenses based on each Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions paid on purchases and sales of fund shares. Therefore, the hypothetical examples are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Schedule of Investments
iSHARES
®RUSSELL TOP 200 ETF
March 31, 2016Security Shares Value
COMMON STOCKS — 99.87%
AEROSPACE & DEFENSE — 2.95%Boeing Co. (The) 4,027 $ 511,187
General Dynamics Corp. 1,704 223,854
Honeywell International Inc. 4,837 541,986
Lockheed Martin Corp. 1,682 372,563
Northrop Grumman Corp. 1,132 224,023
Raytheon Co. 1,882 230,790
United Technologies Corp. 5,177 518,218 2,622,621 AIR FREIGHT & LOGISTICS — 0.82%
FedEx Corp. 1,660 270,115
United Parcel Service Inc. Class B 4,344 458,162 728,277 AIRLINES — 0.46%
American Airlines Group Inc. 3,881 159,160
Delta Air Lines Inc. 5,071 246,856
406,016 AUTO COMPONENTS — 0.18%
Johnson Controls Inc. 4,059 158,179
158,179 AUTOMOBILES — 0.87%
Ford Motor Co. 24,123 325,661
General Motors Co. 9,929 312,068
Tesla Motors Inc.a,b 606 139,241
776,970 BANKS — 5.92%
Bank of America Corp. 64,984 878,584
BB&T Corp. 4,799 159,663
Citigroup Inc. 18,774 783,815
JPMorgan Chase & Co. 22,963 1,359,869 PNC Financial Services Group
Inc. (The)c 3,204 270,962
U.S. Bancorp. 10,377 421,202
Wells Fargo & Co. 28,828 1,394,122
5,268,217 BEVERAGES — 2.32%
Coca-Cola Co. (The) 24,264 1,125,607
PepsiCo Inc. 9,133 935,950
2,061,557 BIOTECHNOLOGY — 3.97%
AbbVie Inc. 10,242 585,023
Alexion Pharmaceuticals Inc.a 1,333 185,580
Security Shares Value
Amgen Inc. 4,705 $ 705,421
Baxalta Inc. 3,375 136,350
Biogen Inc.a 1,381 359,502
Celgene Corp.a 4,911 491,542
Gilead Sciences Inc. 8,453 776,493
Regeneron Pharmaceuticals Inc.a 487 175,534 Vertex Pharmaceuticals Inc.a 1,509 119,950 3,535,395 CAPITAL MARKETS — 1.82%
Bank of New York Mellon Corp. (The) 6,949 255,932
BlackRock Inc.c 774 263,601
Charles Schwab Corp. (The) 7,068 198,045
Franklin Resources Inc. 2,426 94,735
Goldman Sachs Group Inc. (The) 2,673 419,608
Morgan Stanley 9,487 237,270
State Street Corp. 2,551 149,284
1,618,475 CHEMICALS — 2.15%
Air Products & Chemicals Inc. 1,327 191,154
Chemours Co. (The) 1,107 7,749
Dow Chemical Co. (The) 6,915 351,697
Ecolab Inc. 1,630 181,778
EI du Pont de Nemours & Co. 5,602 354,719 LyondellBasell Industries NV Class A 2,251 192,640
Monsanto Co. 2,732 239,706
PPG Industries Inc. 1,682 187,526
Praxair Inc. 1,778 203,492
1,910,461 COMMERCIAL SERVICES & SUPPLIES — 0.19%
Waste Management Inc. 2,835 167,265
167,265 COMMUNICATIONS EQUIPMENT — 1.01%
Cisco Systems Inc. 31,470 895,951
895,951 CONSUMER FINANCE — 0.75%
American Express Co. 5,072 311,421
Capital One Financial Corp. 3,210 222,485 Discover Financial Services 2,562 130,457 664,363 DIVERSIFIED FINANCIAL SERVICES — 2.05%
Berkshire Hathaway Inc. Class Ba 11,508 1,632,755
CME Group Inc./IL 1,981 190,275
iSHARES
®RUSSELL TOP 200 ETF
March 31, 2016Security Shares Value
DIVERSIFIED TELECOMMUNICATION SERVICES — 3.19%
AT&T Inc. 37,667 $ 1,475,416
Verizon Communications Inc. 25,237 1,364,817 2,840,233 ELECTRIC UTILITIES — 1.74%
American Electric Power Co. Inc. 3,021 200,595
Duke Energy Corp. 4,275 344,907
Exelon Corp. 5,716 204,976
NextEra Energy Inc. 2,748 325,198
PG&E Corp. 2,970 177,368
Southern Co. (The) 5,626 291,033
1,544,077 ELECTRICAL EQUIPMENT — 0.46%
Eaton Corp. PLC 2,893 180,986
Emerson Electric Co. 4,126 224,372
405,358 ELECTRONIC EQUIPMENT, INSTRUMENTS &
COMPONENTS — 0.16%
Corning Inc. 6,872 143,556
143,556 ENERGY EQUIPMENT & SERVICES — 1.00%
Baker Hughes Inc. 2,708 118,692
Halliburton Co. 5,256 187,744
Schlumberger Ltd. 7,857 579,454
885,890 FOOD & STAPLES RETAILING — 2.81%
Costco Wholesale Corp. 2,726 429,563
CVS Health Corp. 6,982 724,243
Kroger Co. (The) 6,041 231,068
Wal-Mart Stores Inc. 9,774 669,421
Walgreens Boots Alliance Inc. 5,319 448,073 2,502,368 FOOD PRODUCTS — 1.20%
Archer-Daniels-Midland Co. 3,848 139,721
General Mills Inc. 3,676 232,875
Kraft Heinz Co. (The) 3,671 288,394
Mondelez International Inc. Class A 10,078 404,329 1,065,319 HEALTH CARE EQUIPMENT & SUPPLIES — 1.80%
Abbott Laboratories 9,227 385,966
Baxter International Inc. 3,380 138,850
Becton Dickinson and Co. 1,293 196,303
Security Shares Value
Medtronic PLC 8,818 $ 661,350
Stryker Corp. 2,083 223,485
1,605,954 HEALTH CARE PROVIDERS & SERVICES — 2.74%
Aetna Inc. 2,156 242,227
Anthem Inc. 1,635 227,249
Cardinal Health Inc. 2,046 167,670
Cigna Corp. 1,590 218,212
Express Scripts Holding Co.a 3,914 268,853
HCA Holdings Inc.a 1,989 155,241
Humana Inc. 929 169,960
McKesson Corp. 1,438 226,125
UnitedHealth Group Inc. 5,890 759,221
2,434,758 HOTELS, RESTAURANTS & LEISURE — 1.92%
Carnival Corp. 2,637 139,154
Las Vegas Sands Corp. 2,279 117,779
McDonald’s Corp. 5,462 686,464
Starbucks Corp. 9,285 554,315
Yum! Brands Inc. 2,524 206,589
1,704,301 HOUSEHOLD PRODUCTS — 2.34%
Colgate-Palmolive Co. 5,606 396,064
Kimberly-Clark Corp. 2,255 303,320
Procter & Gamble Co. (The) 16,787 1,381,738 2,081,122 INDUSTRIAL CONGLOMERATES — 3.21%
3M Co. 3,925 654,023
Danaher Corp. 3,694 350,413
General Electric Co. 58,194 1,849,987
2,854,423 INSURANCE — 2.17%
Aflac Inc. 2,683 169,405
Allstate Corp. (The) 2,383 160,543
American International Group Inc. 7,109 384,241
Chubb Ltd. 2,883 343,509
Marsh & McLennan Companies Inc. 3,319 201,762
MetLife Inc. 5,808 255,204
Prudential Financial Inc. 2,793 201,710 Travelers Companies Inc. (The) 1,822 212,646 1,929,020 INTERNET & CATALOG RETAIL — 2.34%
Schedule of Investments
(Continued)iSHARES
®RUSSELL TOP 200 ETF
March 31, 2016Security Shares Value
Netflix Inc.a,b 2,627 $ 268,558
Priceline Group Inc. (The)a 320 412,467 2,081,422 INTERNET SOFTWARE & SERVICES — 5.21%
Alphabet Inc. Class Aa 1,783 1,360,251 Alphabet Inc. Class Ca 1,820 1,355,809
eBay Inc.a 7,542 179,952
Facebook Inc. Class Aa 13,391 1,527,913
Yahoo! Inc.a 5,800 213,498
4,637,423 IT SERVICES — 4.04%
Accenture PLC Class A 3,891 449,021
Automatic Data Processing Inc. 2,895 259,710 Cognizant Technology Solutions
Corp. Class Aa 3,764 236,003
International Business Machines Corp. 5,619 850,998
MasterCard Inc. Class A 6,185 584,482
PayPal Holdings Inc.a 7,500 289,500
Visa Inc. Class A 12,112 926,326
3,596,040 LIFE SCIENCES TOOLS & SERVICES — 0.55%
Illumina Inc.a 893 144,764
Thermo Fisher Scientific Inc. 2,459 348,170 492,934 MACHINERY — 0.83%
Caterpillar Inc. 3,741 286,336
Cummins Inc. 1,054 115,877
Deere & Co. 1,951 150,208
Illinois Tool Works Inc. 1,851 189,616
742,037 MEDIA — 3.80%
CBS Corp. Class B NVS 2,838 156,345
Comcast Corp. Class A 15,495 946,434
DISH Network Corp. Class Aa 1,331 61,572
Thomson Reuters Corp. 2,016 81,608
Time Warner Cable Inc. 1,746 357,266
Time Warner Inc. 5,112 370,876
Twenty-First Century Fox Inc. Class A 6,913 192,734 Twenty-First Century Fox Inc. Class B 3,026 85,333
Viacom Inc. Class A 62 2,809
Viacom Inc. Class B NVS 2,120 87,514
Walt Disney Co. (The) 10,499 1,042,656
3,385,147
Security Shares Value
METALS & MINING — 0.02%
Southern Copper Corp.b 699 $ 19,369
19,369 MULTI-UTILITIES — 0.31%
Dominion Resources Inc./VA 3,676 276,141 276,141 MULTILINE RETAIL — 0.34%
Target Corp. 3,711 305,341
305,341 OIL, GAS & CONSUMABLE FUELS — 6.18%
Anadarko Petroleum Corp. 3,164 147,347
Apache Corp. 2,354 114,899
Chevron Corp. 11,636 1,110,074
ConocoPhillips 7,651 308,106
Devon Energy Corp. 2,959 81,195
EOG Resources Inc. 3,409 247,425
Exxon Mobil Corp. 25,872 2,162,640
Kinder Morgan Inc./DE 11,088 198,032
Marathon Petroleum Corp. 3,365 125,111
Occidental Petroleum Corp. 4,744 324,632
Phillips 66 3,350 290,077
Spectra Energy Corp. 4,167 127,510
Valero Energy Corp. 2,966 190,239
Williams Companies Inc. (The) 4,580 73,601 5,500,888 PERSONAL PRODUCTS — 0.14%
Estee Lauder Companies Inc. (The)
Class A 1,304 122,980
122,980 PHARMACEUTICALS — 6.49%
Allergan PLCa 2,428 650,777
Bristol-Myers Squibb Co. 10,315 658,922
Eli Lilly & Co. 6,061 436,452
Johnson & Johnson 17,159 1,856,604
Merck & Co. Inc. 17,482 924,973
Mylan NVa 2,606 120,788
Pfizer Inc. 38,102 1,129,343
5,777,859 REAL ESTATE INVESTMENT TRUSTS (REITS) — 1.22%
American Tower Corp. 2,626 268,823
Equity Residential 2,229 167,242
Public Storage 893 246,316
Simon Property Group Inc. 1,930 400,842 1,083,223
iSHARES
®RUSSELL TOP 200 ETF
March 31, 2016Security Shares Value
ROAD & RAIL — 0.84%
CSX Corp. 6,122 $ 157,641
Norfolk Southern Corp. 1,890 157,343
Union Pacific Corp. 5,423 431,400
746,384 SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT — 2.50%
Broadcom Ltd. 2,341 361,684
Intel Corp. 29,354 949,602
Micron Technology Inc.a 6,613 69,238
QUALCOMM Inc. 9,307 475,960
Texas Instruments Inc. 6,449 370,302
2,226,786 SOFTWARE — 4.70%
Adobe Systems Inc.a 3,098 290,592
Microsoft Corp. 50,057 2,764,648
Oracle Corp. 19,605 802,041
salesforce.com inc.a 4,059 299,676
VMware Inc. Class Aa,b 501 26,207
4,183,164 SPECIALTY RETAIL — 2.08%
Home Depot Inc. (The) 8,038 1,072,510
Lowe’s Companies Inc. 5,889 446,092
TJX Companies Inc. (The) 4,210 329,854
1,848,456 TECHNOLOGY HARDWARE, STORAGE &
PERIPHERALS — 5.08%
Apple Inc. 35,648 3,885,275
EMC Corp./MA 12,007 319,987
Hewlett Packard Enterprise Co. 10,616 188,222
HP Inc. 10,663 131,368
4,524,852 TEXTILES, APPAREL & LUXURY GOODS — 0.73%
NIKE Inc. Class B 8,393 515,918
VF Corp. 2,100 135,996
651,914 TOBACCO — 2.20%
Altria Group Inc. 12,168 762,447
Philip Morris International Inc. 9,586 940,482
Reynolds American Inc. 5,125 257,839
1,960,768
Security Shares Value
WIRELESS TELECOMMUNICATION SERVICES — 0.07%
T-Mobile U.S. Inc.a 1,679 $ 64,306
64,306 TOTAL COMMON STOCKS
(Cost: $91,034,548) 88,860,590
SHORT-TERM INVESTMENTS — 0.59%
MONEY MARKET FUNDS — 0.59%BlackRock Cash Funds: Institutional, SL Agency Shares
0.50%c,d,e 434,847 434,847
BlackRock Cash Funds: Prime, SL Agency Shares
0.51%c,d,e 22,088 22,088
BlackRock Cash Funds: Treasury, SL Agency Shares
0.28%c,d 67,128 67,128
524,063 TOTAL SHORT-TERM INVESTMENTS
(Cost: $524,063) 524,063
TOTAL INVESTMENTS IN SECURITIES — 100.46%
(Cost: $91,558,611) 89,384,653
Other Assets, Less Liabilities — (0.46)% (405,654)
NET ASSETS — 100.00% $88,978,999
NVS — Non-Voting Shares
aNon-income earning security.
bAll or a portion of this security represents a security on loan. See Note 1. c Affiliated issuer. See Note 2.
dThe rate quoted is the annualized seven-day yield of the fund at period end. eAll or a portion of this security represents an investment of securities lending
collateral. See Note 1.