2016 年 3 月 期 決 算 短 信 (2015 年 4 月 1 日 ~2016 年 3 月 31 日 ) Earnings Report for Fiscal Year ended March 2016 (April 1, 2015 March 31, 2016)

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1 2016 年 3 月 期 決 算 短 信 (2015 年 4 月 1 日 ~2016 年 3 月 31 日 ) Earnings Report for Fiscal Year ended March 2016 (April 1, 2015 March 31, 2016) 2016 年 6 月 27 日 June 27, 2016 フ ァ ン ド 名 i シェアーズ 米 国 小 型 株 ETF(ラッセル 2000) 上 場 取 引 所 東 コ ー ド 番 号 1588 売 買 単 位 1 口 連 動 対 象 指 標 主 要 投 資 資 産 ラッセル 2000 指 数 有 価 証 券 管 理 会 社 ブラックロック ファンド アドバイザーズ U R L 代 表 者 ( 役 職 名 ) マネージング ディレクター ( 氏 名 ) ジャック ジー 問 合 せ 先 責 任 者 ( 役 職 名 ) 代 理 人 ( 氏 名 ) 濃 川 耕 平 (TEL) 03(6250)6200 Fund name: ETF-JDR Listed Exchange: TSE Code: 1588 Trading unit: 1 unit Underlying indicator: Primary invested assets: Securities Management co.: URL: Index BlackRock Fund Advisors Representative: (Title) Managing Director (Name) Jack Gee Contact person: (Title) Attorney-in-Fact (Name) Kohei Koikawa (TEL) 03(6250)6200 有 価 証 券 報 告 書 提 出 予 定 日 2016 年 9 月 Scheduled date of submission of securities report: September 2016

2 Ⅰ ファンドの 運 用 状 況 I Fund Management 年 3 月 期 の 運 用 状 況 (2015 年 4 月 1 日 ~2016 年 3 月 31 日 ) 1. Management Status for Year Ended March 2016 (from April 1, 2015 to March 31, 2016) (1) 信 託 財 産 である 外 国 ETF の 資 産 内 訳 ( 百 万 円 未 満 切 捨 て) (1) Assets of Trust Asset Foreign ETF (amounts below 1 mil. yen are disregarded) 主 要 投 資 資 産 Primary Invested Assets 現 金 預 金 その 他 の 資 産 ( 負 債 控 除 後 ) Cash/Deposits/Other Assets (minus liabilities) 合 計 ( 純 資 産 ) Total (Net Assets) 2016 年 3 月 期 FY ended March 年 3 月 期 FY ended March 2015 金 額 Amount 百 万 円 JPY mil. 構 成 比 ratio % % 金 額 Amount 百 万 円 JPY mil. 構 成 比 ratio % % 金 額 Amount 百 万 円 JPY mil. 構 成 比 ratio 3,289, ,166 (17.01) 2,811, ,936, ,574 (14.77) 3,429, % % (2) 信 託 財 産 である 外 国 ETF の 設 定 交 換 実 績 (2) Creation and Redemption of Trust Asset Foreign ETF 前 計 算 期 間 末 発 行 済 口 数 No. of Issued Units at End of Previous Calculation Period 設 定 口 数 No. of Units Created 交 換 口 数 No. of Units Redeemed 当 計 算 期 間 末 発 行 済 口 数 No. of Issued Units at End of Calculation Period 2016 年 3 月 期 FY ended March 年 3 月 期 FY ended March 2015 (1) 千 口 000 units (2) 千 口 000 units (3) 千 口 000 units (1+2-3) 千 口 000 units 248, , , , , , , ,550 (3) 信 託 財 産 である 外 国 ETF の 基 準 価 額 (3) Net Asset Value of Trust Asset Foreign ETF 総 資 産 Total Assets 2016 年 3 月 期 FY ended March 年 3 月 期 FY ended March 2015 (1) 百 万 円 JPY mil. 負 債 Liabilities (2) 百 万 円 JPY mil. 純 資 産 Net Assets (3(1-2)) 百 万 円 JPY mil. 1 口 当 たり 基 準 価 額 Net Asset Value per unit ((3/ 当 計 算 期 間 末 発 行 済 口 数 ) 1) ((3/No. of Issued Units at End of Calculation Period) 1) 3,308, ,526 2,811,650 12, ,957, ,990 3,429,888 13, 円 JPY

3 (4) 上 場 外 国 ETF 信 託 受 益 証 券 に 係 る 設 定 交 換 実 績 (4) Creation and Redemption of Listed Foreign ETF Trust Beneficiary Certificates (JDR) 前 計 算 期 間 末 発 行 済 口 数 No. of Issued Units at End of Previous Calculation Period 設 定 口 数 No. of Units Created 交 換 口 数 No. of Units Redeemed 当 計 算 期 間 末 発 行 済 口 数 No. of Issued Units at End of Calculation Period 2016 年 3 月 期 FY ended March 年 3 月 期 FY ended March 2015 (1) 千 口 000 units (2) 千 口 000 units (3) 千 口 000 units (1+2-3) 千 口 000 units (5) 上 場 外 国 ETF 信 託 受 益 証 券 の 分 配 金 (5) Dividend Payment of Listed Foreign ETF Trust Beneficiary Certificates (JDR) 2016 年 3 月 期 FY ended March 口 当 たり 分 配 金 Dividend per unit 2015 年 3 月 期 FY ended March 口 当 たり 分 配 金 Dividend per unit 1 円 JPY 1 円 JPY 2015 年 7 月 7 日 July 7, 年 7 月 7 日 July 7, 年 9 月 25 日 税 率 (Tax Rate)10%: 年 9 月 26 日 2 September 25, 2015 税 率 (Tax Rate)30%:26 September 26, 年 12 月 29 日 2 税 率 (Tax Rate)10%: 年 12 月 29 日 December 29, 2015 税 率 (Tax Rate)30%:39 December 29, 年 3 月 28 日 税 率 (Tax Rate)10%: 年 3 月 27 日 2 March 28, 2016 税 率 (Tax Rate)30%:23 March 27, 当 該 期 間 における 分 配 のための 基 準 日 を 記 載 しております 1 The record dates for distributions corresponding to the relevant period are indicated. 2 適 用 される 米 国 源 泉 税 率 毎 に 算 出 されています 2 These amounts of dividend per unit are shown together with, and after the application of, the respective applicable U.S. withholding tax rates. ( 注 ) 上 記 (1)~(3)の 表 における 米 ドルから 日 本 円 への 換 算 は 1 米 ドル= 円 の 換 算 率 (2016 年 5 月 31 日 に 株 式 会 社 三 菱 東 京 UFJ 銀 行 が 公 表 した 対 顧 客 電 信 売 買 相 場 の 仲 値 )により 計 算 されています (Note) Conversion from United States dollars into Japanese yen with respect to the tables in (1) through (3) above has been made at the exchange rate of $1 = (the telegraphic transfer middle exchange rate vis-à-vis customers quoted by The Bank of Tokyo-Mitsubishi UFJ, Ltd. on May 31, 2016). 2. 信 託 財 産 である 外 国 ETF の 会 計 方 針 の 変 更 2. Change in Accounting Policies of Trust Asset Foreign ETF (1) 会 計 基 準 等 の 改 正 に 伴 う 会 計 方 針 の 変 更 : 無 (1) Changes accompanying revision to accounting standards, etc. :No (2) (1) 以 外 の 会 計 方 針 の 変 更 : 無 (2) Changes other than those in (1) :No

4 MARCH 31, ANNUAL REPORT Trust Russell Top 200 ETF IWL NYSE Arca Russell Top 200 Growth ETF IWY NYSE Arca Russell Top 200 Value ETF IWX NYSE Arca ETF IWB NYSE Arca Growth ETF IWF NYSE Arca Value ETF IWD NYSE Arca ETF IWM NYSE Arca Growth ETF IWO NYSE Arca Value ETF IWN NYSE Arca

5 Table of Contents Management s Discussions of Fund Performance... 5 About Fund Performance Shareholder Expenses Schedules of Investments Russell Top 200 ETF Russell Top 200 Growth ETF Russell Top 200 Value ETF ETF (Summary) Growth ETF (Summary) Value ETF (Summary) ETF (Summary) Growth ETF (Summary) Value ETF (Summary) Financial Statements Financial Highlights Notes to Financial Statements Report of Independent Registered Public Accounting Firm Tax Information Supplemental Information Trustee and Officer Information

6 Statements of Assets and Liabilities (Continued) March 31, 2016 ETF Growth ETF Value ETF ASSETS Investments, at cost: Unaffiliated $33,577,076,370 $ 6,963,084,548 $6,384,158,881 Affiliated (Note 2) 4,401,544,716 1,474,372, ,251,518 Total cost of investments $37,978,621,086 $ 8,437,456,582 $7,115,410,399 Investments in securities, at fair value (including securities on loan a )(Note1): Unaffiliated $25,265,133,786 $ 5,931,348,709 $5,764,263,977 Affiliated (Note 2) 4,388,886,227 1,474,372, ,808,741 Total fair value of investments 29,654,020,013 7,405,720,743 6,491,072,718 Cash 30,713 5,448 Cash pledged to broker 3,268, , ,000 Receivables: Investment securities sold 86,542,383 14,535,122 24,437,410 Due from custodian (Note 4) 6,480,177 14,763 18,081 Dividends and interest 42,353,151 5,599,200 13,606,154 Capital shares sold 26,673, ,161 Futures variation margin 146,698 21,060 28,394 Total Assets 29,819,514,409 7,426,514,049 6,529,828,205 LIABILITIES Payables: Investment securities purchased 75,929,762 12,165,851 26,648,868 Collateral for securities on loan (Note 1) 4,358,697,413 1,470,608, ,937,810 Capital shares redeemed 36,456, ,741 Securities related to in-kind transactions (Note 4) 434,276 Investment advisory fees (Note 2) 4,109,312 1,216,851 1,178,095 Total Liabilities 4,475,627,287 1,484,203, ,764,773 NET ASSETS $25,343,887,122 $ 5,942,310,697 $5,788,063,432 Net assets consist of: Paid-in capital $37,945,306,351 $ 8,331,060,295 $7,177,600,278 Distributions in excess of net investment income (8,112) (304) (1,157,746) Accumulated net realized loss (4,278,560,387) (1,357,288,378) (764,481,711) Net unrealized depreciation (8,322,850,730) (1,031,460,916) (623,897,389) NET ASSETS $25,343,887,122 $ 5,942,310,697 $5,788,063,432 Shares outstanding b 228,850,000 44,750,000 62,050,000 Net asset value per share $ $ $ a Securities on loan with values of $4,273,344,764, $1,444,719,350 and $695,976,703, respectively. See Note 1. b No par value, unlimited number of shares authorized. See notes to financial statements. F INANCIAL S TATEMENTS 65

7 Statements of Operations (Continued) Year ended March 31, 2016 ETF Growth ETF Value ETF NET INVESTMENT INCOME Dividends unaffiliated a $ 365,903,232 $ 46,851,110 $ 118,705,921 Dividends affiliated (Note 2) 1,902,163 1,044,253 Interest affiliated (Note 2) 36,752 6,990 7,131 Other income 25,281 Securities lending income affiliated net (Note 2) 71,996,880 24,802,999 10,410,806 Total investment income 439,839,027 71,661, ,193,392 EXPENSES Investment advisory fees (Note 2) 53,109,938 16,464,609 14,347,406 Total expenses 53,109,938 16,464,609 14,347,406 Net investment income 386,729,089 55,196, ,845,986 NET REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) from: Investments unaffiliated (1,387,114,688) (79,573,016) (69,192,561) Investments affiliated (Note 2) (194,052) In-kind redemptions unaffiliated 2,629,600, ,868, ,915,178 Futures contracts (6,799,051) (187,671) (1,539,563) Foreign currency transactions (2,000) (838) Net realized gain 1,235,684, ,107, ,988,164 Net change in unrealized appreciation/depreciation on: Investments (4,704,144,275) (1,386,253,076) (840,934,199) Futures contracts 505,053 62,470 83,039 Net change in unrealized appreciation/depreciation (4,703,639,222) (1,386,190,606) (840,851,160) Net realized and unrealized loss (3,467,954,929) (950,082,718) (618,862,996) NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $(3,081,225,840) $ (894,886,228) $(503,017,010) a Net of foreign withholding tax of $149,513, $12,576 and $56,922, respectively. See notes to financial statements ishares A NNUAL R EPORT TO S HAREHOLDERS

8 Statements of Changes in Net Assets (Continued) Year ended March 31, 2016 ETF Year ended March 31, 2015 Year ended March 31, 2016 Growth ETF Year ended March 31, 2015 INCREASE (DECREASE) IN NET ASSETS OPERATIONS: Net investment income $ 386,729,089 $ 361,520,519 $ 55,196,490 $ 49,737,879 Net realized gain 1,235,684,293 2,269,602, ,107,888 1,007,101,014 Net change in unrealized appreciation/depreciation (4,703,639,222) (714,891,471) (1,386,190,606) (279,808,825) Net increase (decrease) in net assets resulting from operations (3,081,225,840) 1,916,231,999 (894,886,228) 777,030,068 DISTRIBUTIONS TO SHAREHOLDERS: From net investment income (400,400,423) (377,188,617) (56,674,684) (50,213,443) Total distributions to shareholders (400,400,423) (377,188,617) (56,674,684) (50,213,443) CAPITAL SHARE TRANSACTIONS: Proceeds from shares sold 94,721,172,277 98,849,425,689 2,666,071,826 4,853,912,948 Cost of shares redeemed (96,812,264,359) (98,287,402,185) (3,095,480,123) (4,621,808,371) Net increase (decrease) in net assets from capital share transactions (2,091,092,082) 562,023,504 (429,408,297) 232,104,577 INCREASE (DECREASE) IN NET ASSETS (5,572,718,345) 2,101,066,886 (1,380,969,209) 958,921,202 NET ASSETS Beginning of year 30,916,605,467 28,815,538,581 7,323,279,906 6,364,358,704 End of year $ 25,343,887,122 $ 30,916,605,467 $ 5,942,310,697 $ 7,323,279,906 Distributions in excess of net investment income included in net assets at end of year $ (8,112) $ (1,152,903) $ (304) $ (578,800) SHARES ISSUED AND REDEEMED Shares sold 819,000, ,450,000 18,400,000 36,000,000 Shares redeemed (838,700,000) (856,400,000) (21,950,000) (34,450,000) Net increase (decrease) in shares outstanding (19,700,000) 1,050,000 (3,550,000) 1,550,000 See notes to financial statements ishares A NNUAL R EPORT TO S HAREHOLDERS

9 Financial Highlights (Continued) (For a share outstanding throughout each period) Year ended Mar. 31, 2016 ETF Year ended Mar. 31, 2015 Year ended Mar. 31, 2014 Year ended Mar. 31, 2013 Year ended Mar. 31, 2012 Net asset value, beginning of year $ $ $ $ $ Income from investment operations: Net investment income a Net realized and unrealized gain (loss) b (13.63) (1.35) Total from investment operations (11.97) (0.27) Less distributions from: Net investment income (1.68) (1.59) (1.45) (1.70) (1.11) Total distributions (1.68) (1.59) (1.45) (1.70) (1.11) Net asset value, end of year $ $ $ $ $ Total return (9.67)% 8.29% 24.91% 16.36% (0.18)% Ratios/Supplemental data: Net assets, end of year (000s) $25,343,887 $30,916,605 $28,815,539 $21,400,065 $14,870,314 Ratio of expenses to average net assets 0.20% 0.20% 0.20% 0.20% 0.20% Ratio of net investment income to average net assets 1.43% 1.37% 1.28% 1.91% 1.40% Portfolio turnover rate c 17% 19% 18% 19% 21% a Based on average shares outstanding throughout each period. b The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund s underlying securities. c Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. See notes to financial statements ishares A NNUAL R EPORT TO S HAREHOLDERS

10 Notes to Financial Statements Trust (the Trust ) is registered under the Investment Company Act of 1940, as amended (the 1940 Act ), as an open-end management investment company. The Trust was established as a Delaware statutory trust pursuant to an Agreement and Declaration of Trust dated December 16, These financial statements relate only to the following funds (each, a Fund, and collectively, the Funds ): ETF Russell Top 200 Russell Top 200 Growth Russell Top 200 Value Growth Diversification Classification Diversified Diversified Diversified Diversified Diversified ETF Value Growth Value Diversification Classification Diversified Diversified Diversified Diversified The investment objective of each Fund is to seek investment results that correspond generally to the price and yield performance, before fees and expenses, of its underlying index. The investment adviser uses a passive or index approach to try to achieve each Fund s investment objective. Pursuant to the Trust s organizational documents, the Funds officers and trustees are indemnified against certain liabilities that may arise out of the performance of their duties to the Funds. Additionally, in the normal course of business, the Funds enter into contracts with service providers that contain general indemnification clauses. The Funds maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred. 1. SIGNIFICANT ACCOUNTING POLICIES The following significant accounting policies are consistently followed by the Funds in the preparation of their financial statements in conformity with accounting principles generally accepted in the United States of America ( U.S. GAAP ). The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. SECURITY VALUATION Each Fund s investments are valued at fair value each day that the Fund s listing exchange is open and, for financial reporting purposes, as of the report date should the reporting period end on a day that the Fund s listing exchange is not open. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The BlackRock Global Valuation Methodologies Committee (the Global Valuation Committee ) provides oversight of the valuation of investments for the Funds. The investments of each Fund are valued pursuant to policies and procedures developed by the Global Valuation Committee and approved by the Board of Trustees of the Trust (the Board ). Equity investments traded on a recognized securities exchange are valued at that day s last reported trade price or the official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price. N OTES TO F INANCIAL S TATEMENTS 83

11 Open-end U.S. mutual funds (including money market funds) are valued at that day s published net asset value ( NAV ). Futures contracts are valued at that day s last reported settlement price on the exchange where the contract is traded. In the event that application of these methods of valuation results in a price for an investment which is deemed not to be representative of the fair value of such investment or if a price is not available, the investment will be valued based upon other available factors deemed relevant by the Global Valuation Committee, in accordance with policies approved by the Board. These factors include but are not limited to (i) attributes specific to the investment; (ii) the principal market for the investment; (iii) the customary participants in the principal market for the investment; (iv) data assumptions by market participants for the investment, if reasonably available; (v) quoted prices for similar investments in active markets; and (vi) other factors, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or default rates. Valuations based on such factors are reported to the Board on a quarterly basis. The Global Valuation Committee employs various methods for calibrating valuation approaches for investments where an active market does not exist, including regular due diligence of the Trust s pricing vendors, a regular review of key inputs and assumptions, transactional back-testing or disposition analysis to compare unrealized gains and losses to realized gains and losses, reviews of missing or stale prices, reviews of large movements in market values, and reviews of market related activity. Fair value pricing could result in a difference between the prices used to calculate a Fund s NAV and the prices used by the Fund s underlying index, which in turn could result in a difference between the Fund s performance and the performance of the Fund s underlying index. Various inputs are used in determining the fair value of financial instruments. Inputs may be based on independent market data ( observable inputs ) or they may be internally developed ( unobservable inputs ). These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial reporting purposes. The level of a value determined for a financial instrument within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement in its entirety. The categorization of a value determined for a financial instrument within the hierarchy is based upon the pricing transparency of the instrument and is not necessarily an indication of the risk associated with investing in the instrument. The three levels of the fair value hierarchy are as follows: Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities; Level 2 Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability (such as exchange rates, financing terms, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; and Level 3 Unobservable inputs for the asset or liability, including the Global Valuation Committee s assumptions used in determining the fair value of investments. Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. In accordance with the Trust s policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period ishares A NNUAL R EPORT TO S HAREHOLDERS

12 The following table summarizes the value of each of the Funds investments according to the fair value hierarchy as of March 31, The breakdown of each Fund s investments into major categories is disclosed in its respective schedule of investments. ETF Level 1 Level 2 Level 3 Total Russell Top 200 Investments: Assets: Common Stocks $ 88,860,590 $ $ $ 88,860,590 Money Market Funds 524, ,063 Total $ 89,384,653 $ $ $ 89,384,653 Russell Top 200 Growth Investments: Assets: Common Stocks $ 630,898,819 $ $ $ 630,898,819 Money Market Funds 6,387,294 6,387,294 Total $ 637,286,113 $ $ $ 637,286,113 Russell Top 200 Value Investments: Assets: Common Stocks $ 170,155,566 $ $ $ 170,155,566 Money Market Funds 96,788 96,788 Total $ 170,252,354 $ $ $ 170,252,354 Investments: Assets: Common Stocks $14,780,068,614 $ $ $14,780,068,614 Money Market Funds 374,981, ,981,611 Total $15,155,050,225 $ $ $15,155,050,225 Derivative Financial Instruments: a Assets: Futures Contracts $ 736,622 $ $ $ 736,622 Total $ 736,622 $ $ $ 736,622 Growth Investments: Assets: Common Stocks $29,648,642,929 $ $ $29,648,642,929 Money Market Funds 954,104, ,104,389 Total $30,602,747,318 $ $ $30,602,747,318 Derivative Financial Instruments: a Assets: Futures Contracts $ 911,817 $ $ $ 911,817 Total $ 911,817 $ $ $ 911,817 N OTES TO F INANCIAL S TATEMENTS 85

13 ETF Level 1 Level 2 Level 3 Total Value Investments: Assets: Common Stocks $26,278,927,194 $ $ $26,278,927,194 Money Market Funds 412,070, ,070,245 Total $26,690,997,439 $ $ $26,690,997,439 Derivative Financial Instruments: a Assets: Futures Contracts $ 1,694,400 $ $ $ 1,694,400 Total $ 1,694,400 $ $ $ 1,694,400 Investments: Assets: Common Stocks $25,247,788,783 $4,070,501 $27,858,869 $25,279,718,153 Rights 64,252 64,252 Warrants 3 3 Money Market Funds 4,374,237,605 4,374,237,605 Total $29,622,026,388 $4,134,756 $27,858,869 $29,654,020,013 Derivative Financial Instruments: a Assets: Futures Contracts $ 1,750,343 $ $ $ 1,750,343 Total $ 1,750,343 $ $ $ 1,750,343 Growth Investments: Assets: Common Stocks $ 5,929,849,469 $1,244,953 $ 224,074 $ 5,931,318,496 Rights 30,213 30,213 Warrants 0 b 0 b Money Market Funds 1,474,372,034 1,474,372,034 Total $ 7,404,221,503 $1,275,166 $ 224,074 $ 7,405,720,743 Derivative Financial Instruments: a Assets: Futures Contracts $ 274,923 $ $ $ 274,923 Total $ 274,923 $ $ $ 274, ishares A NNUAL R EPORT TO S HAREHOLDERS

14 ETF Level 1 Level 2 Level 3 Total Value Investments: Assets: Common Stocks $ 5,759,275,030 $ 687,811 $11,901,131 $ 5,771,863,972 Warrants 1 1 Money Market Funds 719,208, ,208,745 Total $ 6,478,483,775 $ 687,812 $11,901,131 $ 6,491,072,718 Derivative Financial Instruments: a Assets: Futures Contracts $ 440,292 $ $ $ 440,292 Total $ 440,292 $ $ $ 440,292 a b Shown at the unrealized appreciation (depreciation) on the contracts. Rounds to less than $1. SECURITY TRANSACTIONS AND INCOME RECOGNITION Security transactions are accounted for on trade date. Dividend income and capital gain distributions, if any, are recognized on the ex-dividend date, net of any foreign taxes withheld at source. Any taxes withheld that are reclaimable from foreign tax authorities as of March 31, 2016 are reflected in tax reclaims receivable. Non-cash dividends received in the form of stock in an elective dividend, if any, are recorded as dividend income at fair value. Distributions received by the Funds may include a return of capital that is estimated by management. Such amounts are recorded as a reduction of the cost of investments or reclassified to capital gains. Interest income is accrued daily. Realized gains and losses on investment transactions are determined using the specific identification method. FOREIGN CURRENCY TRANSLATION The accounting records of the Funds are maintained in U.S. dollars. Foreign currencies, as well as investment securities and other assets and liabilities denominated in foreign currencies, are translated into U.S. dollars using exchange rates deemed appropriate by the investment adviser. Purchases and sales of securities, income receipts and expense payments are translated into U.S. dollars on the respective dates of such transactions. Each Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of securities. Such fluctuations are reflected by the Funds as a component of realized and unrealized gains and losses from investments for financial reporting purposes. FOREIGN TAXES The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which the Funds invest. These foreign taxes, if any, are paid by the Funds and are reflected in their statements of operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as other foreign taxes, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of March 31, 2016, if any, are disclosed in the Funds statements of assets and liabilities. N OTES TO F INANCIAL S TATEMENTS 87

15 DISTRIBUTIONS TO SHAREHOLDERS Dividends and distributions paid by each Fund are recorded on the ex-dividend dates. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividends and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Funds. LOANS OF PORTFOLIO SECURITIES Each Fund may lend its investment securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the current value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Funds. Any additional required collateral is delivered to the Funds and any excess collateral is returned by the Funds on the next business day. During the term of the loan, each Fund is entitled to all distributions made on or in respect of the loaned securities. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions. Any cash received as collateral for securities on loan may be reinvested in certain short-term instruments either directly on behalf of a fund or through one or more joint accounts or money market funds, including those managed by BlackRock Fund Advisors ( BFA ), the Funds investment adviser, or its affiliates. As of March 31, 2016, any securities on loan were collateralized by cash. The cash collateral received was invested in money market funds managed by BFA and is disclosed in the schedules of investments. The securities on loan for each Fund are also disclosed in its schedule of investments. The total value of any securities on loan as of March 31, 2016 and the total value of the related collateral are disclosed in the statements of assets and liabilities. Income earned by the Funds from securities lending is disclosed in the statements of operations. The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, the Funds benefit from a borrower default indemnity provided by BlackRock, Inc. ( BlackRock ). BlackRock s indemnity allows for full replacement of securities lent. Each Fund could suffer a loss if the value of the investments purchased with cash collateral falls below the value of the cash collateral received. Securities lending transactions are entered into by the Funds under Master Securities Lending Agreements ( MSLA ) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, a Fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. The value of the collateral is typically greater than that of the market value of the securities loaned, leaving the lender with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty s bankruptcy or insolvency. Under the MSLA, the borrower can resell or re-pledge the loaned securities, and a Fund can reinvest cash collateral, or, upon an event of default, resell or re-pledge the collateral ishares A NNUAL R EPORT TO S HAREHOLDERS

16 The following table is a summary of securities lending agreements which are subject to offset under an MSLA as of March 31, 2016: ETF and Counterparty Market Value of Securities on Loan Cash Collateral Received a Net Amount Russell Top 200 Barclays Capital Inc. $ 19,369 $ 19,369 $ Deutsche Bank Securities Inc. 26,667 26,667 Morgan Stanley & Co. LLC (U.S. Equity Securities Lending) 136, ,713 State Street Bank & Trust Company 266, ,514 $ 449,263 $ 449,263 $ Russell Top 200 Growth Barclays Capital Inc. $ 74,477 $ 74,477 $ Credit Suisse Securities (USA) LLC 32,398 32,398 Deutsche Bank Securities Inc. 136, ,254 HSBC Bank PLC 9,880 9,880 Merrill Lynch, Pierce, Fenner & Smith 3,454,274 3,454,274 Morgan Stanley & Co. LLC (U.S. Equity Securities Lending) 351, ,994 SG Americas Securities LLC 10,253 10,253 Wells Fargo Securities LLC 1,604,254 1,604,254 $ 5,673,784 $ 5,673,784 $ Barclays Capital Inc. $ 2,890,007 $ 2,890,007 $ BMO Capital Markets 7,691 7,691 BNP Paribas Prime Brokerage Inc. 2,637,006 2,637,006 Citigroup Global Markets Inc. 43,127,620 43,127,620 Credit Suisse Securities (USA) LLC 15,028,582 15,028,582 Deutsche Bank Securities Inc. 51,206,345 51,206,345 Goldman Sachs & Co. 58,357,472 58,357,472 HSBC Bank PLC 7,189 7,189 Jefferies LLC 3,881,090 3,881,090 JPMorgan Clearing Corp. 35,986,021 35,986,021 Merrill Lynch, Pierce, Fenner & Smith 19,694,862 19,694,862 Morgan Stanley & Co. LLC (U.S. Equity Securities Lending) 59,636,927 59,636,927 National Financial Services LLC 525, ,189 Scotia Capital (USA) Inc. 97,151 97,151 SG Americas Securities LLC 5,850,643 5,850,643 State Street Bank & Trust Company 28,438,900 28,438,900 Timber Hill LLC 373, ,179 UBS Securities LLC 20,641,841 20,641,841 Wells Fargo Securities LLC 2,800 2,800 $ 348,390,515 $ 348,390,515 $ N OTES TO F INANCIAL S TATEMENTS 89

17 ETF and Counterparty Market Value of Securities on Loan Cash Collateral Received a Net Amount Growth Barclays Capital Inc. $ 9,420,369 $ 9,420,369 $ BNP Paribas Prime Brokerage Inc. 45,937,559 45,937,559 Citigroup Global Markets Inc. 77,823,903 77,823,903 Credit Suisse Securities (USA) LLC 25,792,472 25,792,472 Deutsche Bank Securities Inc. 44,323,601 44,323,601 Goldman Sachs & Co. 182,838, ,838,158 HSBC Bank PLC 743, ,920 Jefferies LLC 17,116,754 17,116,754 JPMorgan Clearing Corp. 130,660, ,660,952 Merrill Lynch, Pierce, Fenner & Smith 63,459,079 63,459,079 Morgan Stanley & Co. LLC (U.S. Equity Securities Lending) 180,140, ,140,741 National Financial Services LLC 2,416,661 2,416,661 Scotia Capital (USA) Inc. 15,282,135 15,282,135 State Street Bank & Trust Company 40,725,321 40,725,321 Timber Hill LLC 2,503,707 2,503,707 UBS Securities LLC 65,790,462 65,790,462 Wells Fargo Securities LLC 2,801,887 2,801,887 $ 907,777,681 $ 907,777,681 $ Value Barclays Capital Inc. $ 8,769,555 $ 8,769,555 $ BMO Capital Markets 2,589 2,589 BNP Paribas Prime Brokerage Inc. 3,029,469 3,029,469 Citigroup Global Markets Inc. 23,723,615 23,723,615 Credit Suisse Securities (USA) LLC 5,425,500 5,425,500 Deutsche Bank Securities Inc. 22,103,554 22,103,554 Goldman Sachs & Co. 47,937,739 47,937,739 HSBC Bank PLC 251, ,148 Jefferies LLC 9,998,538 9,998,538 JPMorgan Clearing Corp. 72,705,062 72,705,062 Merrill Lynch, Pierce, Fenner & Smith 25,341,960 25,341,960 Morgan Stanley & Co. LLC (U.S. Equity Securities Lending) 54,509,499 54,509,499 National Financial Services LLC 498, ,435 SG Americas Securities LLC 308, ,921 State Street Bank & Trust Company 43,634,803 43,634,803 Timber Hill LLC 12,326 12,326 UBS Securities LLC 40,932,334 40,932,334 Wells Fargo Securities LLC 314, ,617 $ 359,499,664 $ 359,499,664 $ ishares A NNUAL R EPORT TO S HAREHOLDERS

18 ETF and Counterparty Market Value of Securities on Loan Cash Collateral Received a Net Amount Barclays Capital Inc. $ 70,490,142 $ 70,490,142 $ BMO Capital Markets 71,781 71,781 BNP Paribas Prime Brokerage Inc. 133,996, ,996,701 Citigroup Global Markets Inc. 262,408, ,408,173 Credit Suisse Securities (USA) LLC 203,165, ,165,565 Deutsche Bank Securities Inc. 424,661, ,661,196 Goldman Sachs & Co. 934,957, ,957,423 HSBC Bank PLC 10,423,643 10,423,643 Jefferies LLC 25,937,168 25,937,168 JPMorgan Clearing Corp. 616,793, ,793,100 Merrill Lynch, Pierce, Fenner & Smith 341,417, ,417,214 Morgan Stanley & Co. LLC (U.S. Equity Securities Lending) 770,595, ,595,753 National Financial Services LLC 86,718,418 86,718,418 Scotia Capital (USA) Inc. 6,894,713 6,894,713 SG Americas Securities LLC 8,518,455 8,518,455 State Street Bank & Trust Company 82,963,473 82,963,473 Timber Hill LLC 4,590,512 4,590,512 UBS Securities LLC 242,596, ,596,185 Wells Fargo Securities LLC 46,145,149 46,145,149 $ 4,273,344,764 $4,273,344,764 $ Growth Barclays Capital Inc. $ 36,371,301 $ 36,371,301 $ BNP Paribas Prime Brokerage Inc. 44,840,771 44,840,771 Citigroup Global Markets Inc. 115,579, ,579,685 Credit Suisse Securities (USA) LLC 73,208,584 73,208,584 Deutsche Bank Securities Inc. 143,930, ,930,446 Goldman Sachs & Co. 287,574, ,574,885 HSBC Bank PLC 6,197,968 6,197,968 Jefferies LLC 11,711,233 11,711,233 JPMorgan Clearing Corp. 191,283, ,283,298 Merrill Lynch, Pierce, Fenner & Smith 112,035, ,035,494 Morgan Stanley & Co. LLC (U.S. Equity Securities Lending) 276,122, ,122,861 National Financial Services LLC 29,594,954 29,594,954 Scotia Capital (USA) Inc. 2,448,620 2,448,620 SG Americas Securities LLC 1,317,984 1,317,984 State Street Bank & Trust Company 29,845,297 29,845,297 Timber Hill LLC 1,974,022 1,974,022 UBS Securities LLC 75,736,247 75,736,247 Wells Fargo Securities LLC 4,945,700 4,945,700 $ 1,444,719,350 $1,444,719,350 $ N OTES TO F INANCIAL S TATEMENTS 91

19 ETF and Counterparty Market Value of Securities on Loan Cash Collateral Received a Net Amount Value Barclays Capital Inc. $ 14,979,523 $ 14,979,523 $ BNP Paribas Prime Brokerage Inc. 12,810,054 12,810,054 Citigroup Global Markets Inc. 35,337,039 35,337,039 Credit Suisse Securities (USA) LLC 29,358,981 29,358,981 Deutsche Bank Securities Inc. 86,319,119 86,319,119 Goldman Sachs & Co. 168,148, ,148,383 HSBC Bank PLC 3,805,501 3,805,501 Jefferies LLC 5,153,343 5,153,343 JPMorgan Clearing Corp. 116,990, ,990,328 Merrill Lynch, Pierce, Fenner & Smith 52,661,201 52,661,201 Morgan Stanley & Co. LLC (U.S. Equity Securities Lending) 99,018,408 99,018,408 National Financial Services LLC 6,767,573 6,767,573 Scotia Capital (USA) Inc. 100, ,036 SG Americas Securities LLC 991, ,072 State Street Bank & Trust Company 9,932,084 9,932,084 Timber Hill LLC 361, ,708 UBS Securities LLC 45,785,244 45,785,244 Wells Fargo Securities LLC 7,457,106 7,457,106 $ 695,976,703 $ 695,976,703 $ a Collateral received in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by each Fund is disclosed in each Fund s statement of assets and liabilities. 2. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES Pursuant to an Investment Advisory Agreement with the Trust, BFA manages the investment of each Fund s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA is responsible for substantially all expenses of the Funds, except interest, taxes, brokerage commissions and other expenses connected with the execution of portfolio transactions, distribution fees, litigation expenses and any extraordinary expenses. For its investment advisory services to each of the following Funds, BFA is entitled to an annual investment advisory fee based on the average daily net assets of each Fund as follows: Investment ETF Advisory Fee Russell Top % Russell Top 200 Growth 0.20 Russell Top 200 Value ishares A NNUAL R EPORT TO S HAREHOLDERS

20 For its investment advisory services to each of the Growth and Value ETFs, BFA is entitled to an annual investment advisory fee based on each Fund s allocable portion of the aggregate of the average daily net assets of the Fund and certain other funds, as follows: Investment Advisory Fee Aggregate Average Daily Net Assets % First $121 billion a Over $121 billion, up to and including $181 billion a Over $181 billion, up to and including $231 billion a Over $231 billion, up to and including $281 billion a Over $281 billion a Investment advisory fee level reflects a 5% reduction (rounded to the fourth decimal place) from the investment advisory fee at the prior aggregate average daily net asset level. Prior to July 1, 2015, for its investment advisory services to each of the Growth and Value ETFs, BFA was entitled to an annual investment advisory fee based on each Fund s allocable portion of the aggregate of the average daily net assets of the Fund and certain other funds, as follows: Investment Advisory Fee Aggregate Average Daily Net Assets % First $121 billion a Over $121 billion, up to and including $211 billion a Over $211 billion a Investment advisory fee level reflects a 5% reduction (rounded to the fourth decimal place) from the investment advisory fee at the prior aggregate average daily net asset level. For its investment advisory services to the ETF, BFA is entitled to an annual investment advisory fee based on the Fund s allocable portion of the aggregate of the average daily net assets of the Fund and certain other funds, as follows: Investment Advisory Fee Aggregate Average Daily Net Assets % First $46 billion a Over $46 billion, up to and including $81 billion a Over $81 billion, up to and including $111 billion a Over $111 billion, up to and including $141 billion a Over $141 billion a Investment advisory fee level reflects a 5% reduction (rounded to the fourth decimal place) from the investment advisory fee at the prior aggregate average daily net asset level. N OTES TO F INANCIAL S TATEMENTS 93

21 Prior to July 1, 2015, for its investment advisory services to the ETF, BFA was entitled to an annual investment advisory fee based on the Fund s allocable portion of the aggregate of the average daily net assets of the Fund and certain other funds, as follows: Investment Advisory Fee Aggregate Average Daily Net Assets % First $46 billion a Over $46 billion, up to and including $81 billion a Over $81 billion, up to and including $141 billion a Over $141 billion a Investment advisory fee level reflects a 5% reduction (rounded to the fourth decimal place) from the investment advisory fee at the prior aggregate average daily net asset level. For its investment advisory services to each of the Growth and Value ETFs, BFA is entitled to an annual investment advisory fee based on each Fund s allocable portion of the aggregate of the average daily net assets of the Fund and certain other funds, as follows: Investment Advisory Fee Aggregate Average Daily Net Assets % First $46 billion a Over $46 billion, up to and including $81 billion a Over $81 billion, up to and including $111 billion a Over $111 billion, up to and including $141 billion a Over $141 billion a Investment advisory fee level reflects a 5% reduction (rounded to the fourth decimal place) from the investment advisory fee at the prior aggregate average daily net asset level. Prior to July 1, 2015, for its investment advisory services to each of the Growth and Value ETFs, BFA was entitled to an annual investment advisory fee based on each Fund s allocable portion of the aggregate of the average daily net assets of the Fund and certain other funds, as follows: Investment Advisory Fee Aggregate Average Daily Net Assets % First $46 billion a Over $46 billion, up to and including $81 billion a Over $81 billion, up to and including $141 billion a Over $141 billion a Investment advisory fee level reflects a 5% reduction (rounded to the fourth decimal place) from the investment advisory fee at the prior aggregate average daily net asset level. The U.S. Securities and Exchange Commission has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. ( BTC ), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan in a money market fund managed by BFA, however, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees each Fund bears to an annual rate of 0.04% (the collateral investment fees ). Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, net of fees and other payments to and from borrowers of securities, and less the collateral investment fees. The Funds retain a portion of securities lending income and remit the remaining portion to BTC as compensation for its services as securities lending agent ishares A NNUAL R EPORT TO S HAREHOLDERS

22 Pursuant to a securities lending agreement, each Fund retains 71.5% of securities lending income and the amount retained can never be less than 65% of the total of securities lending income plus the collateral investment fees. In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across all 1940 Act exchange-traded funds (the ETF Complex ) in a given calendar year exceeds the aggregate securities lending income generated across the ETF Complex in the calendar year 2013, each Fund, pursuant to a securities lending agreement, will retain for the remainder of that calendar year 75% of securities lending income and the amount retained can never be less than 65% of the total of securities lending income plus the collateral investment fees. For the year ended March 31, 2016, the total of securities lending agent services and collateral investment fees paid were as follows: Fees Paid ETF to BTC Russell Top 200 $ 934 Russell Top 200 Growth 10,814 Russell Top 200 Value ,221 Growth 2,100,698 Fees Paid ETF to BTC Value $ 1,655,333 29,489,572 Growth 10,176,208 Value 4,274,263 BlackRock Investments, LLC, an affiliate of BFA, is the distributor for each Fund. Pursuant to the distribution agreement, BFA is responsible for any fees or expenses for distribution services provided to the Funds. Cross trading is the buying or selling of portfolio securities between funds to which BFA (or an affiliate) serves as investment adviser. At its regularly scheduled quarterly meetings, the Board reviews such transactions as of the most recent calendar quarter for compliance with the requirements and restrictions set forth by Rule 17a-7. For the year ended March 31, 2016, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows: ETF Purchases Sales Russell Top 200 $ 3,458,249 $ 1,752,548 Russell Top 200 Growth 62,403,935 49,871,617 Russell Top 200 Value 20,661,027 8,080, ,817, ,676,468 Growth 2,680,679,593 3,115,543,957 Value 3,057,217,583 1,273,760, ,250,953 1,011,020,810 Growth 751,358, ,051,240 Value 699,643, ,476,249 Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is included in Interest affiliated in the statements of operations. The PNC Financial Services Group, Inc. is the largest stockholder of BlackRock and is considered to be an affiliate of the Funds for 1940 Act purposes. N OTES TO F INANCIAL S TATEMENTS 95

23 Investments in issuers considered to be affiliates of the Funds (excluding money market funds) during the year ended March 31, 2016, for purposes of Section 2(a)(3) of the 1940 Act, were as follows: ETF and Name of Affiliated Issuer Shares Held at Beginning of Year Shares Purchased Shares Sold Shares Held at End of Year Value at End of Year Dividend Income Net Realized Gain (Loss) Russell Top 200 BlackRock Inc (133) 774 $ 263,601 $ 7,331 $ (2,369) PNC Financial Services Group Inc. (The) 3, (599) 3, ,962 7,104 (702) $ 534,563 $ 14,435 $ (3,071) Russell Top 200 Growth BlackRock Inc. 4, (1,773) 3,330 $ 1,134,098 $ 28,854 $ 180,799 Russell Top 200 Value BlackRock Inc. 2, (322) 2,142 $ 729,501 $ 17,675 $ 9,214 PNC Financial Services Group Inc. (The) 13,762 2,812 (3,604) 12,970 1,096,873 25,316 27,969 $ 1,826,374 $ 42,991 $ 37,183 BlackRock Inc. 68,573 38,470 (15,881) 91,162 $ 31,047,042 $ 711,369 $ 1,770,085 PNC Financial Services Group Inc. (The) 287, ,650 (68,597) 376,337 31,826, ,052 1,347,363 $ 62,873,862 $1,357,421 $ 3,117,448 Growth BlackRock Inc. 129,242 24,354 (41,039) 112,557 $ 38,333,538 $1,038,805 $ 2,720,543 Value BlackRock Inc. 199,140 69,179 (39,625) 228,694 $ 77,886,316 $1,903,498 $ 4,030,986 PNC Financial Services Group Inc. (The) 1,349, ,682 (399,375) 1,384, ,067,376 2,726,170 6,031,595 $194,953,692 $4,629,668 $10,062,581 PennyMac Financial Services Inc. Class A 224, ,219 $ 2,636,815 $ $ PennyMac Mortgage Investment Trust 880, ,631 12,011,807 1,902,163 $ 14,648,622 $1,902,163 $ Value PennyMac Financial Services Inc. Class A 93,191 93,191 $ 1,095,926 $ $ PennyMac Mortgage Investment Trust 500,253 (23,415) 476,838 6,504,070 1,044,253 (194,052) $ 7,599,996 $1,044,253 $ (194,052) ishares A NNUAL R EPORT TO S HAREHOLDERS

24 Certain trustees and officers of the Trust are also officers of BTC and/or BFA. 3. INVESTMENT PORTFOLIO TRANSACTIONS Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the year ended March 31, 2016 were as follows: ETF Purchases Sales Russell Top 200 $ 6,836,139 $ 6,234,956 Russell Top 200 Growth 96,050,976 93,384,409 Russell Top 200 Value 28,102,988 27,365, ,066, ,225,046 Growth 5,196,747,882 4,776,814,441 Value 4,614,734,690 4,208,193,422 5,521,600,630 4,682,092,098 Growth 2,108,723,614 1,847,167,250 Value 1,681,215,462 1,521,272,288 In-kind transactions (see Note 4) for the year ended March 31, 2016 were as follows: ETF In-kind Purchases In-kind Sales Russell Top 200 $ 6,853,207 $ 10,938,102 Russell Top 200 Growth 128,608, ,770,277 Russell Top 200 Value 29,390,695 34,870,268 5,806,204,532 2,123,405,551 Growth 5,098,294,531 4,629,100,278 Value 7,177,923,322 5,489,770,008 93,519,753,319 95,549,624,527 Growth 2,638,112,008 3,060,983,784 Value 1,996,754,291 1,795,928, CAPITAL SHARE TRANSACTIONS Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof ( Creation Units ) at NAV. Except when aggregated in Creation Units, shares of each Fund are not redeemable. Transactions in capital shares for each Fund are disclosed in detail in the statements of changes in net assets. The consideration for the purchase of Creation Units of a fund in the Trust generally consists of the in-kind deposit of a designated portfolio of securities and a specified amount of cash. Certain funds in the Trust may be offered in Creation Units solely or partially for cash in U.S. dollars. Investors purchasing and redeeming Creation Units may pay a purchase transaction fee and a redemption transaction fee directly to State Street Bank and Trust Company, the Trust s administrator, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units, including Creation Units for cash. Investors transacting in Creation Units for cash may also pay an additional variable charge to compensate the relevant fund for certain transaction costs (i.e., stamp taxes, taxes on currency or other financial transactions, and brokerage costs) and market impact expenses relating to investing in portfolio securities. Such variable charges, if any, are included in Proceeds from shares sold in the statements of changes in net assets. N OTES TO F INANCIAL S TATEMENTS 97