2021 Summary Prospectus - iShares
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
JULY 30, 2021
2021 Summary Prospectus
• iShares U.S. Telecommunications ETF | IYZ | CBOE BZX
Before you invest, you may want to review the Fund’s prospectus, which contains more
information about the Fund and its risks. You can find the Fund’s prospectus (including
amendments and supplements) and other information about the Fund, including the
Fund’s statement of additional information and shareholder reports, online at https://
www.ishares.com/prospectus. You can also get this information at no cost by calling 1-
800-iShares (1-800-474-2737) or by sending an e-mail request to
iSharesETFs@blackrock.com, or from your financial professional. The Fund’s prospectus
and statement of additional information, both dated July 30, 2021, as amended and
supplemented from time to time, are incorporated by reference into (legally made a part
of) this Summary Prospectus. Information on the Fund’s net asset value, market price,
premiums and discounts, and bid-ask spreads can be found at www.iShares.com.
The Securities and Exchange Commission has not approved or disapproved these
securities or passed upon the adequacy of this prospectus. Any representation to the
contrary is a criminal offense.IMPORTANT NOTICE REGARDING CHANGE IN
INVESTMENT POLICY
iShares®
iShares Trust
Supplement dated July 30, 2021 (the “Supplement”)
to the Summary Prospectus, Prospectus
and Statement of Additional Information (the “SAI”),
each dated July 30, 2021,
for the iShares U.S. Telecommunications ETF (IYZ) (the “Fund”)
The information in this Supplement updates information in, and
should be read in conjunction with, the Summary Prospectus,
Prospectus and SAI for the Fund.
Change in the Fund’s Underlying Index
Prior to September 20, 2021, the Fund’s Underlying Index is Dow
Jones U.S. Select Telecommunications Index.
Change in the Fund’s “Principal Investment Strategies”
Prior to September 20, 2021, the first paragraph of the section of the
Summary Prospectus and Prospectus entitled “Principal Investment
Strategies” is the following, instead of the current first four
paragraphs of the section:
The Fund seeks to track the investment results of the Dow Jones U.S.
Select Telecommunications Index (the “Underlying Index”), which
measures the performance of the telecommunications sector of the U.S.
equity market, as defined by S&P Dow Jones Indices LLC (the “Index
Provider” or “SPDJI”). The Underlying Index may include large-, mid- or
small-capitalization companies. As of March 31, 2020, a significant
portion of the Underlying Index is represented by securities of
companies in the information technology and telecommunications
industries or sectors. The components of the Underlying Index are likely
to change over time.
Prior to September 20, 2021, the last paragraph of the section of the
Summary Prospectus and Prospectus entitled “Principal Investment
Strategies” is the following, instead of the current last paragraph of
the section:
The Underlying Index is sponsored by SPDJI, which is independent of the
Fund and BFA. The Index Provider determines the composition and
relative weightings of the securities in the Underlying Index and publishes
information regarding the market value of the Underlying Index.Changes to the “Average Annual Total Returns” table Prior to September 20, 2021, references to the “Russell 1000 Telecommunications RIC 22.5/45 Capped Index,” each footnote “2” reference and footnote “2” in the “Average Annual Total Returns” table on page S-8 of the Summary Prospectus and Prospectus are deleted. Changes to “More Information About the Fund” Prior to September 20, 2021, the second paragraph in the section of the Prospectus entitled “More Information About the Fund” is deleted in its entirety. Change to the Fund’s “Index Provider” Prior to September 20, 2021, the section entitled “Index Provider” on page 27 of the Prospectus of the Fund is the following, instead of the current two paragraphs: SPDJI is the Index Provider for the Underlying Index and is not affiliated with the Trust, BFA, State Street, the Distributor or any of their respective affiliates. SPDJI is a resource for index-based concepts, data and research. SPDJI provides financial, economic and investment information and analytical services to the financial community. SPDJI calculates and maintains the S&P Global 1200, which includes the S&P 500® for the U.S., the S&P Europe 350 for Continental Europe, Ireland and the U.K., the S&P/TOPIX 150 for Japan, the S&P Asia 50, the S&P/TSX 60TM for Canada, the S&P/ ASX 50 and the S&P Latin America 40. SPDJI also publishes the S&P MidCap 400®, S&P SmallCap 600®, S&P Total Market Index and S&P U.S. REIT for the U.S. SPDJI calculates and maintains the S&P Global Broad Market Index (BMI) Series, a set of rules-based equity benchmarks covering developed and emerging countries around the world. Company additions to and deletions from an S&P equity index do not in any way reflect an opinion on the investment merits of the company. BFA or its affiliates have entered into a license agreement with SPDJI to use the Underlying Index. BFA or its affiliates sublicense rights in the Underlying Index to the Trust at no charge. Change in the Fund’s Disclaimers Prior to September 20, 2021, the paragraph at the bottom of page i of the Prospectus for the Fund is the following, instead of the current paragraph: The Dow Jones U.S. Select Telecommunications IndexTM is a product of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”), and has been
licensed for use by BlackRock Fund Advisors (“BFA”) or its affiliates. Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC, a division of S&P Global (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); iShares® and BlackRock® are registered trademarks of BFA and its affiliates, and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by iShares Trust. The Fund is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P or their respective affiliates, and none of such parties makes any representation regarding the advisability of investing in such product(s), nor do they have any liability for any errors, omissions, or interruptions of the Dow Jones U.S. Select Telecommunications Index. Prior to September 20, 2021, the section entitled “Disclaimers” on pages 27-28 of the Prospectus for the Fund is the following, instead of the current five paragraphs: The Underlying Index is a product of SPDJI, and has been licensed for use by BFA or its affiliates. Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC, a division of S&P Global (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); iShares® and BlackRock® are registered trademarks of BFA and its affiliates; and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by the Trust. The Fund is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, or any of their respective affiliates (collectively, “S&P Dow Jones Indices”). S&P Dow Jones Indices make no representation or warranty, express or implied, to the owners of shares of the Fund or any member of the public regarding the advisability of investing in securities generally or in the Fund in particular or the ability of the Underlying Index to track general market performance. S&P Dow Jones Indices’ only relationship to the Trust and BFA and their affiliates with respect to the Underlying Index is the licensing of the Underlying Index and certain trademarks, service marks and/or trade names of S&P Dow Jones Indices and/ or its third party licensors. The Underlying Index is determined, composed and calculated by S&P Dow Jones Indices without regard to the Trust, BFA or its affiliates or the Fund. S&P Dow Jones Indices have no obligation to take the needs of BFA or its affiliates or the owners of shares of the Fund into consideration in determining, composing or calculating the Underlying Index. S&P Dow Jones Indices are not responsible for and have not participated in the determination of the prices, and amount of shares of the Fund or the timing of the
issuance or sale of such shares or in the determination or calculation of the equation by which shares of the Fund are to be converted into cash, surrendered or redeemed, as the case may be. S&P Dow Jones Indices have no obligation or liability in connection with the administration, marketing or trading of shares of the Fund. There is no assurance that investment products based on the Underlying Index will accurately track index performance or provide positive investment returns. SPDJI is not an investment adviser. Inclusion of a security within an index is not a recommendation by S&P Dow Jones Indices to buy, sell, or hold such security, nor is it considered to be investment advice. S&P DOW JONES INDICES DO NOT GUARANTEE THE ADEQUACY, ACCURACY, TIMELINESS AND/OR THE COMPLETENESS OF THE UNDERLYING INDEX OR ANY DATA RELATED THERETO OR ANY COMMUNICATION, INCLUDING BUT NOT LIMITED TO, ORAL OR WRITTEN COMMUNICATION (INCLUDING ELECTRONIC COMMUNICATIONS) WITH RESPECT THERETO. S&P DOW JONES INDICES SHALL NOT BE SUBJECT TO ANY DAMAGES OR LIABILITY FOR ANY ERRORS, OMISSIONS, OR DELAYS THEREIN. S&P DOW JONES INDICES MAKE NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIM ALL WARRANTIES, OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE OR AS TO RESULTS TO BE OBTAINED BY BFA OR ITS AFFILIATES, OWNERS OF SHARES OF THE FUND, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE UNDERLYING INDEX OR WITH RESPECT TO ANY DATA RELATED THERETO. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT WHATSOEVER SHALL S&P DOW JONES INDICES BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES INCLUDING, BUT NOT LIMITED TO, LOSS OF PROFITS, TRADING LOSSES, LOST TIME OR GOODWILL, EVEN IF THEY HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, WHETHER IN CONTRACT, TORT, STRICT LIABILITY, OR OTHERWISE. THERE ARE NO THIRD PARTY BENEFICIARIES OF ANY AGREEMENTS OR ARRANGEMENTS BETWEEN S&P DOW JONES INDICES AND BFA OR ITS AFFILIATES, OTHER THAN THE LICENSORS OF S&P DOW JONES INDICES. Shares of the Fund are not sponsored, endorsed or promoted by Cboe BZX. Cboe BZX makes no representation or warranty, express or implied, to the owners of shares of the Fund or any member of the public regarding the ability of the Fund to track the total return performance of the Underlying Index or the ability of the Underlying Index to track stock market performance. Cboe BZX is not
responsible for, nor has it participated in, the determination of the compilation or the calculation of the Underlying Index, nor in the determination of the timing of, prices of, or quantities of shares of the Fund to be issued, nor in the determination or calculation of the equation by which the shares are redeemable. Cboe BZX has no obligation or liability to owners of shares of the Fund in connection with the administration, marketing or trading of shares of the Fund. Cboe BZX does not guarantee the accuracy and/or the completeness of the Underlying Index or any data included therein. Cboe BZX makes no warranty, express or implied, as to results to be obtained by the Trust on behalf of the Fund as licensee, licensee’s customers and counterparties, owners of shares of the Fund, or any other person or entity from the use of the Underlying Index or any data included therein in connection with the rights licensed as described herein or for any other use. Cboe BZX makes no express or implied warranties and hereby expressly disclaims all warranties of merchantability or fitness for a particular purpose with respect to the Underlying Index or any data included therein. Without limiting any of the foregoing, in no event shall Cboe BZX have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages. Change in the Fund’s “Construction and Maintenance of the Underlying Indexes” Prior to September 20, 2021, the first paragraph of the section entitled Component Selection Criteria on pages 38-39 of the SAI is the following instead of the current paragraph: The following indexes are collectively referred to herein as the “Dow Jones U.S. Select Sectors Specialty Indexes”: Dow Jones U.S. Select Aerospace & Defense Index, Dow Jones U.S. Select Health Care Providers Index, Dow Jones U.S. Select Home Construction Index, Dow Jones U.S. Select Insurance Index, Dow Jones U.S. Select Investment Services Index, Dow Jones U.S. Select Medical Equipment Index, Dow Jones U.S. Select Oil Equipment & Services Index, Dow Jones U.S. Select Oil Exploration & Production Index, Dow Jones U.S. Select Pharmaceuticals Index, Dow Jones U.S. Select Regional Banks Index and Dow Jones U.S. Select Telecommunications Index. The Dow Jones U.S. Real Estate Capped Index is part of the Dow Jones Global Indices family. On a quarterly basis, SPDJI conducts reviews of the float-adjusted market capitalizations and weightings of the securities in the Underlying Indexes.
Prior to September 20, 2021, the third paragraph of the section
entitled Component Selection Criteria on pages 38-39 of the SAI is
the following instead of the current paragraph:
Other than the Dow Jones U.S. Select Home Construction Index, the
Dow Jones U.S. Select Regional Banks Index and the Dow Jones U.S.
Select Telecommunications Index, on the last business day of the
month prior to the quarterly review, a security must have a $500 million
float-adjusted market capitalization to be added to a Dow Jones U.S.
Select Sector Specialty Index or the Dow Jones U.S. Real Estate Capped
Index; securities with a float-adjusted market capitalization below
$250 million will be removed from the applicable Underlying Index.
Prior to September 20, 2021, the fourth paragraph of the section
entitled Component Selection Criteria on page 39 of the SAI is the
following instead of the current paragraph:
On the last business day of the month prior to the quarterly review, a
security must have a $500 million float-adjusted market capitalization
to be added to each of the Dow Jones U.S. Select Home Construction
Index and Dow Jones U.S. Select Telecommunications Index; securities
with a float-adjusted market capitalization below $100 million will be
removed from the applicable Index.
Prior to September 20, 2021, the SAI does not include the section
entitled Russell 1000 Telecommunications RIC 22.5/45 Capped
Index and includes the following:
Dow Jones U.S. Select Telecommunications Index
Number of Components: approximately 39
Index Description. The constituents in the Dow Jones U.S. Select
Telecommunications Index are classified as telecommunication
companies within the Dow Jones U.S. Broad Stock Market Index.
Additional Information. The Dow Jones U.S. Real Estate Capped
Index, the Dow Jones U.S. Select Aerospace & Defense Index, the
Dow Jones U.S. Select Health Care Providers Index, the Dow Jones
U.S. Select Home Construction Index, the Dow Jones U.S. Select
Insurance Index, the Dow Jones U.S. Select Investment Services
Index, the Dow Jones U.S. Select Medical Equipment Index, the
Dow Jones U.S. Select Oil Equipment & Services Index, the Dow Jones
U.S. Select Oil Exploration & Production Index, the Dow Jones U.S.
Select Pharmaceuticals Index, the Dow Jones U.S. Select Regional
Banks Index and the Dow Jones U.S. Select Telecommunications
Index (collectively, the “Dow Jones Indexes”) are products of SPDJI,and have been licensed for use by BFA or its affiliates. S&P® is a
registered trademark of Standard & Poor’s Financial Services LLC
(“S&P”); Dow Jones® is a registered trademark of Dow Jones
Trademark Holdings LLC (“Dow Jones”); and these trademarks have
been licensed for use by SPDJI and sublicensed for certain purposes
by BFA and its affiliates. The Funds are not sponsored, endorsed,
sold or promoted by SPDJI, Dow Jones, S&P or their respective
affiliates or third party licensors and none of such parties make any
representation regarding the advisability of investing in such
product(s) nor do they have any liability for any errors, omissions, or
interruptions of the Dow Jones Indexes.
If you have any questions, please call 1-800-iShares (1-800-474-2737).
iShares® is a registered trademark of BlackRock Fund Advisors and its affiliates.
IS-A-IYZ-0721-2
PLEASE RETAIN THIS SUPPLEMENT
FOR FUTURE REFERENCEiSHARES® U.S. TELECOMMUNICATIONS ETF
Ticker: IYZ Stock Exchange: Cboe BZX
Investment Objective
The iShares U.S. Telecommunications ETF (the “Fund”) seeks to track the investment
results of an index composed of U.S. equities in the telecommunications sector.
Fees and Expenses
The following table describes the fees and expenses that you will incur if you buy, hold
and sell shares of the Fund. The investment advisory agreement between iShares Trust
(the “Trust”) and BlackRock Fund Advisors (“BFA”) (the “Investment Advisory
Agreement”) provides that BFA will pay all operating expenses of the Fund, except the
management fees, interest expenses, taxes, expenses incurred with respect to the
acquisition and disposition of portfolio securities and the execution of portfolio
transactions, including brokerage commissions, distribution fees or expenses, litigation
expenses and any extraordinary expenses.
You may pay other fees, such as brokerage commissions and other fees to
financial intermediaries, which are not reflected in the tables and examples
below.
Annual Fund Operating Expenses
(ongoing expenses that you pay each year as a
percentage of the value of your investments)
Total Annual
Distribution and Fund
Management Service (12b-1) Other Operating
Fees Fees Expenses1 Expenses
0.42% None 0.00% 0.42%
1
The amount rounded to 0.00%.
Example. This Example is intended to help you compare the cost of owning shares of
the Fund with the cost of investing in other funds. The Example assumes that you
invest $10,000 in the Fund for the time periods indicated and then sell all of your
shares at the end of those periods. The Example also assumes that your investment
has a 5% return each year and that the Fund’s operating expenses remain the same.
Although your actual costs may be higher or lower, based on these assumptions, your
costs would be:
1 Year 3 Years 5 Years 10 Years
$43 $135 $235 $530
S-1Portfolio Turnover. The Fund may pay weight of one or more securities in the
transaction costs, such as commissions, Underlying Index may exceed these
when it buys and sells securities (or constraints due to fluctuations in
“turns over” its portfolio). A higher market value, corporate actions, or
portfolio turnover rate may indicate other events that change the index
higher transaction costs and may result composition between quarterly
in higher taxes when Fund shares are rebalance dates.
held in a taxable account. These costs, A significant portion of the Underlying
which are not reflected in the Annual Index is represented by securities of
Fund Operating Expenses or in the companies in the information
Example, affect the Fund’s technology and telecommunications
performance. During the most recent industries or sectors. The components
fiscal year, the Fund’s portfolio turnover of the Underlying Index are likely to
rate was 40% of the average value of its change over time.
portfolio.
BFA uses a “passive” or indexing
Principal Investment approach to try to achieve the Fund’s
Strategies investment objective. Unlike many
investment companies, the Fund does
The Fund seeks to track the investment not try to “beat” the index it tracks and
results of the Russell 1000 does not seek temporary defensive
Telecommunications RIC 22.5/45 positions when markets decline or
Capped Index (the “Underlying Index”), appear overvalued.
which measures the performance of the
telecommunications sector of the U.S. Indexing may eliminate the chance that
equity market, as defined by FTSE the Fund will substantially outperform
Russell (the “Index Provider” or the Underlying Index but also may
“Russell”). The Underlying Index will reduce some of the risks of active
include large- and mid-capitalization management, such as poor security
companies. selection. Indexing seeks to achieve
lower costs and better after-tax
The Underlying Index is a subset of the
performance by aiming to keep portfolio
Russell 1000 Index which is a float-
turnover low in comparison to actively
adjusted capitalization-weighted index
managed investment companies.
of equity securities issued by
approximately the 1,000 largest issuers BFA uses a representative sampling
in the Russell 3000 Index. The Russell indexing strategy to manage the Fund.
3000 Index measures the performance “Representative sampling” is an
of the broad U.S. equity market, as indexing strategy that involves investing
defined by Russell. in a representative sample of securities
that collectively has an investment
The Underlying Index uses a capping
profile similar to that of an applicable
methodology to constrain at quarterly
underlying index. The securities
rebalance: (i) the weights of any single
selected are expected to have, in the
issuer (as determined by Russell) to a
aggregate, investment characteristics
maximum of 22.5%, and (ii) the
(based on factors such as market
aggregate weight of all issuers that
capitalization and industry weightings),
individually exceed 4.5% of the index
fundamental characteristics (such as
weight to a maximum of 45%. The
S-2return variability and yield) and liquidity (i.e., hold 25% or more of its total
measures similar to those of an assets) in a particular industry or group
applicable underlying index. The Fund of industries to approximately the same
may or may not hold all of the securities extent that the Underlying Index is
in the Underlying Index. concentrated. For purposes of this
The Fund generally will invest at least limitation, securities of the U.S.
80% of its assets in the component government (including its agencies and
securities of its Underlying Index and in instrumentalities) and repurchase
investments that have economic agreements collateralized by U.S.
characteristics that are substantially government securities are not
identical to the component securities of considered to be issued by members of
its Underlying Index (i.e., depositary any industry.
receipts representing securities of the Summary of Principal Risks
Underlying Index) and may invest up to
20% of its assets in certain futures, As with any investment, you could lose
options and swap contracts, cash and all or part of your investment in the
cash equivalents, including shares of Fund, and the Fund’s performance could
money market funds advised by BFA or trail that of other investments. The Fund
its affiliates, as well as in securities not is subject to certain risks, including the
included in the Underlying Index, but principal risks noted below, any of
which BFA believes will help the Fund which may adversely affect the Fund’s
track the Underlying Index. Cash and net asset value per share (“NAV”),
cash equivalent investments associated trading price, yield, total return and
with a derivative position will be treated ability to meet its investment objective.
as part of that position for the purposes The order of the below risk factors does
of calculating investments not included not indicate the significance of any
in the Underlying Index. The Fund seeks particular risk factor.
to track the investment results of the Telecommunications Sector Risk.
Underlying Index before fees and Companies in the telecommunications
expenses of the Fund. sector may be affected by industry
The Fund may lend securities competition, substantial capital
representing up to one-third of the value requirements, government regulation
of the Fund’s total assets (including the and obsolescence of
value of any collateral received). telecommunications products and
services due to technological
The Underlying Index is sponsored by advancement.
Russell, which is part of the London
Stock Exchange Group and is Technology Sector Risk. Technology
independent of the Fund and BFA. The companies, including information
Index Provider determines the technology companies, may have
composition and relative weightings of limited product lines, markets, financial
the securities in the Underlying Index resources or personnel. Technology
and publishes information regarding the companies typically face intense
market value of the Underlying Index. competition and potentially rapid
product obsolescence. They are also
Industry Concentration Policy. The heavily dependent on intellectual
Fund will concentrate its investments property rights and may be adversely
S-3affected by the loss or impairment of Participants or the issuers of securities
those rights. Companies in the in which the Fund invests have the
technology sector are facing increased ability to cause disruptions, negatively
government and regulatory scrutiny and impact the Fund’s business operations
may be subject to adverse government and/or potentially result in financial
or regulatory action. losses to the Fund and its shareholders.
Media and Entertainment Industries While the Fund has established business
Risk. Several factors can significantly continuity plans and risk management
affect companies in the media and systems seeking to address system
entertainment industries, including breaches or failures, there are inherent
competition, particularly in the limitations in such plans and systems.
formulation of products and services Furthermore, the Fund cannot control
using new technologies, cyclicality of the cybersecurity plans and systems of
revenues and earnings, a potential the Fund’s Index Provider and other
decrease in the discretionary income of service providers, market makers,
targeted individuals, changing consumer Authorized Participants or issuers of
tastes and interests, and the potential securities in which the Fund invests.
increase in state and federal Asset Class Risk. Securities and other
government regulation. Companies in assets in the Underlying Index or in the
the media and entertainment industries Fund’s portfolio may underperform in
may become obsolete quickly. comparison to the general financial
Equity Securities Risk. Equity markets, a particular financial market or
securities are subject to changes in other asset classes.
value, and their values may be more Authorized Participant Concentration
volatile than those of other asset Risk. Only an Authorized Participant (as
classes. The Underlying Index is defined in the Creations and
composed of common stocks, which Redemptions section of this prospectus
generally subject their holders to more (the “Prospectus”)) may engage in
risks than preferred stocks and debt creation or redemption transactions
securities because common directly with the Fund, and none of
stockholders’ claims are subordinated those Authorized Participants is
to those of holders of preferred stocks obligated to engage in creation and/or
and debt securities upon the bankruptcy redemption transactions. The Fund has
of the issuer. a limited number of institutions that
Risk of Investing in the U.S. Certain may act as Authorized Participants on
changes in the U.S. economy, such as an agency basis (i.e., on behalf of other
when the U.S. economy weakens or market participants). To the extent that
when its financial markets decline, may Authorized Participants exit the
have an adverse effect on the securities business or are unable to proceed with
to which the Fund has exposure. creation or redemption orders with
respect to the Fund and no other
Cybersecurity Risk. Failures or Authorized Participant is able to step
breaches of the electronic systems of forward to create or redeem, Fund
the Fund, the Fund’s adviser, distributor, shares may be more likely to trade at a
the Index Provider and other service premium or discount to NAV and
providers, market makers, Authorized possibly face trading halts or delisting.
S-4Concentration Risk. The Fund may be its shareholders. Unusual market
susceptible to an increased risk of loss, conditions may cause the Index
including losses due to adverse events Provider to postpone a scheduled
that affect the Fund’s investments more rebalance, which could cause the
than the market as a whole, to the Underlying Index to vary from its normal
extent that the Fund’s investments are or expected composition.
concentrated in the securities and/or Infectious Illness Risk. An outbreak of
other assets of a particular issuer or an infectious respiratory illness, COVID-
issuers, country, group of countries, 19, caused by a novel coronavirus has
region, market, industry, group of resulted in travel restrictions, disruption
industries, sector, market segment or of healthcare systems, prolonged
asset class. quarantines, cancellations, supply chain
Custody Risk. Less developed disruptions, lower consumer demand,
securities markets are more likely to layoffs, ratings downgrades, defaults
experience problems with the clearing and other significant economic impacts.
and settling of trades, as well as the Certain markets have experienced
holding of securities by local banks, temporary closures, extreme volatility,
agents and depositories. severe losses, reduced liquidity and
Geographic Risk. A natural disaster increased trading costs. These events
could occur in a geographic region in will have an impact on the Fund and its
which the Fund invests, which could investments and could impact the
adversely affect the economy or the Fund’s ability to purchase or sell
business operations of companies in the securities or cause elevated tracking
specific geographic region, causing an error and increased premiums or
adverse impact on the Fund’s discounts to the Fund’s NAV. Other
investments in, or which are exposed to, infectious illness outbreaks in the future
the affected region. may result in similar impacts.
Index-Related Risk. There is no Issuer Risk. The performance of the
guarantee that the Fund’s investment Fund depends on the performance of
results will have a high degree of individual securities to which the Fund
correlation to those of the Underlying has exposure. Changes in the financial
Index or that the Fund will achieve its condition or credit rating of an issuer of
investment objective. Market those securities may cause the value of
disruptions and regulatory restrictions the securities to decline.
could have an adverse effect on the Large-Capitalization Companies Risk.
Fund’s ability to adjust its exposure to Large-capitalization companies may be
the required levels in order to track the less able than smaller capitalization
Underlying Index. Errors in index data, companies to adapt to changing market
index computations or the construction conditions. Large-capitalization
of the Underlying Index in accordance companies may be more mature and
with its methodology may occur from subject to more limited growth potential
time to time and may not be identified compared with smaller capitalization
and corrected by the Index Provider for companies. During different market
a period of time or at all, which may cycles, the performance of large-
have an adverse impact on the Fund and capitalization companies has trailed the
S-5overall performance of the broader depend on the performance of a small
securities markets. number of issuers.
Management Risk. As the Fund will not Operational Risk. The Fund is exposed
fully replicate the Underlying Index, it is to operational risks arising from a
subject to the risk that BFA’s number of factors, including, but not
investment strategy may not produce limited to, human error, processing and
the intended results. communication errors, errors of the
Market Risk. The Fund could lose Fund’s service providers, counterparties
money over short periods due to short- or other third parties, failed or
term market movements and over inadequate processes and technology
longer periods during more prolonged or systems failures. The Fund and BFA
market downturns. Local, regional or seek to reduce these operational risks
global events such as war, acts of through controls and procedures.
terrorism, the spread of infectious However, these measures do not
illness or other public health issues, address every possible risk and may be
recessions, or other events could have a inadequate to address significant
significant impact on the Fund and its operational risks.
investments and could result in Passive Investment Risk. The Fund is
increased premiums or discounts to the not actively managed, and BFA generally
Fund’s NAV. does not attempt to take defensive
Market Trading Risk. The Fund faces positions under any market conditions,
numerous market trading risks, including declining markets.
including the potential lack of an active Securities Lending Risk. The Fund may
market for Fund shares, losses from engage in securities lending. Securities
trading in secondary markets, periods of lending involves the risk that the Fund
high volatility and disruptions in the may lose money because the borrower
creation/redemption process. ANY OF of the loaned securities fails to return
THESE FACTORS, AMONG OTHERS, the securities in a timely manner or at
MAY LEAD TO THE FUND’S SHARES all. The Fund could also lose money in
TRADING AT A PREMIUM OR DISCOUNT the event of a decline in the value of
TO NAV. collateral provided for loaned securities
Mid-Capitalization Companies Risk. or a decline in the value of any
Compared to large-capitalization investments made with cash collateral.
companies, mid-capitalization These events could also trigger adverse
companies may be less stable and more tax consequences for the Fund.
susceptible to adverse developments. In Tracking Error Risk. The Fund may be
addition, the securities of mid- subject to tracking error, which is the
capitalization companies may be more divergence of the Fund’s performance
volatile and less liquid than those of from that of the Underlying Index.
large-capitalization companies. Tracking error may occur because of
Non-Diversification Risk. The Fund differences between the securities and
may invest a large percentage of its other instruments held in the Fund’s
assets in securities issued by or portfolio and those included in the
representing a small number of issuers. Underlying Index, pricing differences,
As a result, the Fund’s performance may transaction costs incurred by the Fund,
S-6the Fund’s holding of uninvested cash, and expenses, while the Underlying
differences in timing of the accrual of or Index does not.
the valuation of dividends or interest,
the requirements to maintain pass- Performance Information
through tax treatment, portfolio The bar chart and table that follow show
transactions carried out to minimize the how the Fund has performed on a
distribution of capital gains to calendar year basis and provide an
shareholders, acceptance of custom indication of the risks of investing in the
baskets, changes to the Underlying Fund. Both assume that all dividends
Index or the costs to the Fund of and distributions have been reinvested
complying with various new or existing in the Fund. Past performance (before
regulatory requirements. This risk may and after taxes) does not necessarily
be heightened during times of increased indicate how the Fund will perform in
market volatility or other unusual the future.
market conditions. Tracking error also
may result because the Fund incurs fees
Year by Year Returns1 (Years Ended December 31)
45%
30% 26.24%
22.14%
18.48% 16.26%
15%
4.08%
0.51% 0.48%
0%
-15% -7.29% -11.59% -8.55%
-30%
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
1
The Fund’s year-to-date return as of June 30, 2021 was 11.40%.
The best calendar quarter return during the periods shown above was 14.39% in the
3rd quarter of 2012; the worst was -17.49% in the 3rd quarter of 2011.
Updated performance information, including the Fund’s current NAV, may be obtained
by visiting our website at www.iShares.com or by calling 1-800-iShares (1-800-474-
2737) (toll free).
S-7Average Annual Total Returns
(for the periods ended December 31, 2020)
One Year Five Years Ten Years
(Inception Date: 5/22/2000)
Return Before Taxes 4.08% 3.63% 5.28%
Return After Taxes on Distributions1 3.36% 2.89% 4.65%
Return After Taxes on Distributions and Sale of Fund
Shares1 2.81% 2.67% 4.13%
Dow Jones U.S. Select Telecommunications Index
(Index returns do not reflect deductions for fees,
expenses, or taxes) 4.33% 3.74% 5.50%
Russell 1000 Telecommunications RIC 22.5/45
Capped Index2 (Index returns do not reflect deductions
for fees, expenses, or taxes) N/A N/A N/A
1
After-tax returns in the table above are calculated using the historical highest individual
U.S. federal marginal income tax rates and do not reflect the impact of state or local taxes.
Actual after-tax returns depend on an investor’s tax situation and may differ from those
shown, and after-tax returns shown are not relevant to tax-exempt investors or investors
who hold shares through tax-deferred arrangements, such as 401(k) plans or individual
retirement accounts (“IRAs”). Fund returns after taxes on distributions and sales of Fund
shares are calculated assuming that an investor has sufficient capital gains of the same
character from other investments to offset any capital losses from the sale of Fund shares.
As a result, Fund returns after taxes on distributions and sales of Fund shares may exceed
Fund returns before taxes and/or returns after taxes on distributions.
2
Effective September 20, 2021, the Fund’s Underlying Index will change from the Dow
Jones U.S. Select Telecommunications Index to the Russell 1000 Telecommunications RIC
22.5/45 Capped Index. The inception date of the Russell 1000 Telecommunications RIC
22.5/45 Capped Index is July 9.
S-8Management Tax Information
Investment Adviser. BlackRock Fund The Fund intends to make distributions
Advisors. that may be taxable to you as ordinary
Portfolio Managers. Jennifer Hsui, Alan income or capital gains, unless you are
Mason, Greg Savage and Amy Whitelaw investing through a tax-deferred
(the “Portfolio Managers”) are primarily arrangement such as a 401(k) plan or
responsible for the day-to-day an IRA, in which case, your distributions
management of the Fund. Each Portfolio generally will be taxed when withdrawn.
Manager supervises a portfolio Payments to Broker-Dealers
management team. Ms. Hsui, Mr.
Mason, Mr. Savage and Ms. Whitelaw and Other Financial
have been Portfolio Managers of the Intermediaries
Fund since 2012, 2016, 2008 and
If you purchase shares of the Fund
2018, respectively.
through a broker-dealer or other
Purchase and Sale of Fund financial intermediary (such as a bank),
BFA or other related companies may
Shares pay the intermediary for marketing
The Fund is an exchange-traded fund activities and presentations, educational
(commonly referred to as an “ETF”). training programs, conferences, the
Individual shares of the Fund may only development of technology platforms
be bought and sold in the secondary and reporting systems or other services
market through a broker-dealer. related to the sale or promotion of the
Because ETF shares trade at market Fund. These payments may create a
prices rather than at NAV, shares may conflict of interest by influencing the
trade at a price greater than NAV (a broker-dealer or other intermediary and
premium) or less than NAV (a discount). your salesperson to recommend the
An investor may incur costs attributable Fund over another investment. Ask your
to the difference between the highest salesperson or visit your financial
price a buyer is willing to pay to intermediary’s website for more
purchase shares of the Fund (bid) and information.
the lowest price a seller is willing to
accept for shares of the Fund (ask)
when buying or selling shares in the
secondary market (the “bid-ask
spread”).
S-9[THIS PAGE INTENTIONALLY LEFT BLANK]
[THIS PAGE INTENTIONALLY LEFT BLANK]
For more information visit www.iShares.com or call 1-800-474-2737
IS-SP-IYZ-0721
Go paperless. . .
It’s Easy, Economical and Green!
Go to www.icsdelivery.com
Investment Company Act file No.: 811-09729You can also read
