MARCH 31, 2016 2016 ANNUAL REPORT

MARCH 31, 2016 2016 ANNUAL REPORT Trust Core U.S. Growth ETF IUSG NYSE Arca Core U.S. Value ETF IUSV NYSE Arca Micro-Cap ETF IWC NYSE Arca Russell 3000 ETF IWV NYSE Arca Russell Mid-Cap ETF IWR NYSE Arca Russell Mid-Cap Growth ETF IWP NYSE Arca Russell Mid-Cap Value ETF IWS NYSE Arca

Table of Contents Management s Discussions of Fund Performance... 5 About Fund Performance... 20 Shareholder Expenses... 20 Summary Schedules of Investments... 21 Core U.S. Growth ETF... 21 Core U.S. Value ETF... 25 Micro-Cap ETF... 29 Russell 3000 ETF... 33 Russell Mid-Cap ETF... 37 Russell Mid-Cap Growth ETF... 41 Russell Mid-Cap Value ETF... 45 Financial Statements... 49 Financial Highlights... 59 Notes to Financial Statements... 66 Report of Independent Registered Public Accounting Firm... 85 Tax Information... 86 Supplemental Information... 87 Trustee and Officer Information... 91

THIS PAGE INTENTIONALLY LEFT BLANK.

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. M ANAGEMENT S D ISCUSSIONS OF F UND P ERFORMANCE 5

Management s Discussion of Fund Performance ishares CORE U.S. GROWTH ETF Performance as of March 31, 2016 Average Annual Total Returns Cumulative Total Returns NAV MARKET INDEX NAV MARKET INDEX 1 Year 1.31% 1.35% 1.34% 1.31% 1.35% 1.34% 5 Years 11.83% 11.83% 12.00% 74.89% 74.90% 76.25% 10 Years 7.90% 7.90% 8.09% 113.93% 113.98% 117.78% GROWTH OF $10,000 INVESTMENT (AT NET ASSET VALUE) $25,000 $20,000 $21,778 $21,393 $15,000 $10,000 $5,000 Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 Mar 12 Mar 13 Mar 14 Mar 15 Mar 16 Fund Index 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 20 for more information. Beginning Account Value (10/1/15) Actual Ending Account Value (3/31/16) Expenses Paid During Period a Shareholder Expenses Beginning Account Value (10/1/15) Hypothetical 5% Return Ending Account Value (3/31/16) Expenses Paid During Period a Annualized Expense Ratio $ 1,000.00 $ 1,074.20 $ 0.36 $ 1,000.00 $ 1,024.70 $ 0.35 0.07% a Expenses are calculated using the Fund s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (183 days) and divided by the number of days in the year (366 days). See Shareholder Expenses on page 20 for more information. 6 2016 ishares A NNUAL R EPORT TO S HAREHOLDERS

Management s Discussion of Fund Performance (Continued) ishares CORE U.S. GROWTH ETF The Core U.S. Growth ETF (the Fund ) seeks to track the investment results of a broad-based index composed of U.S. equities that exhibit growth characteristics, as represented by the Russell 3000 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 1.31%, net of fees, while the total return for the Index was 1.34%. As represented by the Index, U.S. growth stocks posted a modest positive return for the reporting period. 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 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 healthcare sector was the largest detractor from the Index s 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 energy sector also produced negative overall 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 Percentage of Sector Total Investments* Information Technology 28.12% Consumer Discretionary 21.08 Health Care 16.09 Industrials 11.25 Consumer Staples 11.20 Financials 5.81 Materials 3.57 Telecommunication Services 2.28 Energy 0.54 Utilities 0.06 TOTAL 100.00% TEN LARGEST FUND HOLDINGS As of 3/31/16 Percentage of Security Total Investments* Apple Inc. 5.55% Microsoft Corp. 2.24 Facebook Inc. Class A 2.18 Amazon.com Inc. 2.00 Alphabet Inc. Class A 1.94 Alphabet Inc. Class C 1.94 Verizon Communications Inc. 1.81 Coca-Cola Co. (The) 1.61 Home Depot Inc. (The) 1.53 Walt Disney Co. (The) 1.49 TOTAL 22.29% * Excludes money market funds. M ANAGEMENT S D ISCUSSIONS OF F UND P ERFORMANCE 7

Management s Discussion of Fund Performance ishares CORE U.S. VALUE ETF Performance as of March 31, 2016 Average Annual Total Returns Cumulative Total Returns NAV MARKET INDEX NAV MARKET INDEX 1 Year (2.05)% (2.04)% (2.05)% (2.05)% (2.04)% (2.05)% 5 Years 9.77% 9.78% 9.95% 59.41% 59.45% 60.71% 10 Years 5.44% 5.44% 5.60% 69.83% 69.91% 72.51% GROWTH OF $10,000 INVESTMENT (AT NET ASSET VALUE) $20,000 $18,000 $16,000 $17,251 $16,983 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 Mar 12 Mar 13 Mar 14 Mar 15 Mar 16 Fund Index 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 20 for more information. Beginning Account Value (10/1/15) Actual Ending Account Value (3/31/16) Expenses Paid During Period a Shareholder Expenses Beginning Account Value (10/1/15) Hypothetical 5% Return Ending Account Value (3/31/16) Expenses Paid During Period a Annualized Expense Ratio $ 1,000.00 $ 1,071.40 $ 0.36 $ 1,000.00 $ 1,024.70 $ 0.35 0.07% a Expenses are calculated using the Fund s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (183 days) and divided by the number of days in the year (366 days). See Shareholder Expenses on page 20 for more information. 8 2016 ishares A NNUAL R EPORT TO S HAREHOLDERS

Management s Discussion of Fund Performance (Continued) ishares CORE U.S. VALUE ETF The Core U.S. Value ETF (the Fund ) seeks to track the investment results of a broad-based index composed of U.S. equities that exhibit value characteristics, as represented by the Russell 3000 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 -2.05%, net of fees, while the total return for the Index was -2.05%. As represented by the Index, U.S. value stocks declined modestly for the reporting period. Half of the sectors in the Index declined for the reporting period, including two of the Index s largest sectors. The energy sector detracted substantially from the Index s return as oil and gas prices fell 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, the largest sector weighting in the Index, 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. The consumer discretionary sector also detracted from the Index s return for the reporting period as retail sales remained sluggish despite strong job growth, low interest rates, and declining energy prices. At the other end of the spectrum, the telecommunication services and utilities sectors, which tend to be more stable and less economically sensitive, were among the most significant positive contributors to the Index s return during the reporting period. Both sectors offered relatively high dividend yields and steady revenues. Information technology stocks were also meaningful contributors to Index performance for the reporting period. Robust growth in smartphone usage, cloud computing, and online security helped fuel the positive returns in the information technology sector. ALLOCATION BY SECTOR As of 3/31/16 Percentage of Sector Total Investments* Financials 29.30% Energy 12.13 Information Technology 11.53 Health Care 11.09 Industrials 10.49 Utilities 7.14 Consumer Staples 7.08 Consumer Discretionary 5.65 Materials 2.89 Telecommunication Services 2.70 TOTAL 100.00% TEN LARGEST FUND HOLDINGS As of 3/31/16 Percentage of Security Total Investments* Exxon Mobil Corp. 3.27% General Electric Co. 2.80 Johnson & Johnson 2.45 Berkshire Hathaway Inc. Class B 2.31 Wells Fargo & Co. 2.11 Procter & Gamble Co. (The) 2.09 JPMorgan Chase & Co. 2.06 AT&T Inc. 1.90 Microsoft Corp. 1.81 Pfizer Inc. 1.71 TOTAL 22.51% * Excludes money market funds. M ANAGEMENT S D ISCUSSIONS OF F UND P ERFORMANCE 9

Management s Discussion of Fund Performance ishares MICRO-CAP ETF Performance as of March 31, 2016 Average Annual Total Returns Cumulative Total Returns NAV MARKET INDEX NAV MARKET INDEX 1 Year (12.98)% (12.96)% (13.05)% (12.98)% (12.96)% (13.05)% 5 Years 6.50% 6.53% 6.61% 37.00% 37.18% 37.70% 10 Years 2.67% 2.68% 3.09% 30.17% 30.22% 35.58% GROWTH OF $10,000 INVESTMENT (AT NET ASSET VALUE) $18,000 $16,000 $14,000 $12,000 $13,558 $13,017 $10,000 $8,000 $6,000 $4,000 $2,000 Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 Mar 12 Mar 13 Mar 14 Mar 15 Mar 16 Fund Index Index performance through July 1, 2006 reflects the performance of the Russell Microcap X TM Index. Index performance beginning on July 2, 2006 reflects the performance of the Russell Microcap Index. 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 20 for more information. Beginning Account Value (10/1/15) Actual Ending Account Value (3/31/16) Expenses Paid During Period a Shareholder Expenses Beginning Account Value (10/1/15) Hypothetical 5% Return Ending Account Value (3/31/16) Expenses Paid During Period a Annualized Expense Ratio $ 1,000.00 $ 982.30 $ 2.97 $ 1,000.00 $ 1,022.00 $ 3.03 0.60% a Expenses are calculated using the Fund s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (183 days) and divided by the number of days in the year (366 days). See Shareholder Expenses on page 20 for more information. 10 2016 ishares A NNUAL R EPORT TO S HAREHOLDERS

Management s Discussion of Fund Performance (Continued) ishares MICRO-CAP ETF The Micro-Cap ETF (the Fund ) seeks to track the investment results of an index composed of micro-capitalization U.S. equities, as represented by the Russell Microcap 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 -12.98%, net of fees, while the total return for the Index was -13.05%. As represented by the Index, micro-capitalization U.S. stocks declined for the reporting period. Based on the Russell indexes, micro-capitalization stocks underperformed all other capitalization segments of the U.S. stock market for the reporting period. Eight 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 one third of the Index s negative performance for the reporting period. The energy and industrials sectors were also meaningful detractors from Index performance. 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. Industrials stocks fell as slowing global economic growth and a stronger U.S. dollar reduced demand for manufactured goods. Another noteworthy detractor from Index performance was the consumer discretionary sector. Retail sales remained sluggish despite strong job growth, low interest rates, and declining energy prices, putting downward pressure on many consumer discretionary stocks. The only two sectors in the Index with positive returns were telecommunication services and utilities. Both sectors tend to be less economically sensitive while offering relatively high dividend yields and steady revenues. In addition, telecommunication services stocks benefited from recent updates to their network technology, while utilities stocks achieved greater energy efficiency. ALLOCATION BY SECTOR As of 3/31/16 Percentage of Sector Total Investments* Financials 30.37% Health Care 18.22 Information Technology 15.37 Consumer Discretionary 13.08 Industrials 10.93 Energy 3.28 Materials 2.62 Consumer Staples 2.39 Telecommunication Services 2.22 Utilities 1.52 TOTAL 100.00% TEN LARGEST FUND HOLDINGS As of 3/31/16 Percentage of Security Total Investments* Smith & Wesson Holding Corp. 0.44% Inphi Corp. 0.41 Renasant Corp. 0.41 Shenandoah Telecommunications Co. 0.39 Comfort Systems USA Inc. 0.36 Affymetrix Inc. 0.33 Neenah Paper Inc. 0.33 Yadkin Financial Corp. 0.33 ServisFirst Bancshares Inc. 0.31 MaxLinear Inc. Class A 0.31 TOTAL 3.62% * Excludes money market funds. M ANAGEMENT S D ISCUSSIONS OF F UND P ERFORMANCE 11

Management s Discussion of Fund Performance ishares RUSSELL 3000 ETF Performance as of March 31, 2016 Average Annual Total Returns Cumulative Total Returns NAV MARKET INDEX NAV MARKET INDEX 1 Year (0.47)% (0.47)% (0.34)% (0.47)% (0.47)% (0.34)% 5 Years 10.82% 10.83% 11.01% 67.18% 67.20% 68.60% 10 Years 6.76% 6.75% 6.90% 92.29% 92.22% 94.94% GROWTH OF $10,000 INVESTMENT (AT NET ASSET VALUE) $22,000 $20,000 $18,000 $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 Mar 12 Mar 13 Mar 14 Mar 15 Mar 16 $19,494 $19,229 Fund Index 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 20 for more information. Beginning Account Value (10/1/15) Actual Ending Account Value (3/31/16) Expenses Paid During Period a Shareholder Expenses Beginning Account Value (10/1/15) Hypothetical 5% Return Ending Account Value (3/31/16) Expenses Paid During Period a Annualized Expense Ratio $ 1,000.00 $ 1,072.30 $ 1.04 $ 1,000.00 $ 1,024.00 $ 1.01 0.20% a Expenses are calculated using the Fund s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (183 days) and divided by the number of days in the year (366 days). See Shareholder Expenses on page 20 for more information. 12 2016 ishares A NNUAL R EPORT TO S HAREHOLDERS

Management s Discussion of Fund Performance (Continued) ishares RUSSELL 3000 ETF The Russell 3000 ETF (the Fund ) seeks to track the investment results of a broad-based index composed of U.S. equities, as represented by the Russell 3000 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 -0.47%, net of fees, while the total return for the Index was -0.34%. As represented by the Index, the broad U.S. stock market posted a fractionally negative return for the reporting period. Just four of the ten sectors in the Index declined for the reporting period, but they included two relatively large sectors in the Index healthcare and financials. The biotechnology and pharmaceuticals industries dragged the healthcare sector lower as the high prices of prescription drugs made headlines, resulting in pricing pressure and political scrutiny for the industries. In the financials sector, 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 most significant detractor from Index performance, however, was the energy sector, which tumbled 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. On the positive side, 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. Several of the less economically sensitive sectors of the Index including consumer staples, telecommunication services, and utilities also contributed positively to the Index s return for the reporting period. Economic uncertainty drove up stock prices in these sectors, as investors gravitated toward sectors with relatively stable revenues. ALLOCATION BY SECTOR As of 3/31/16 Percentage of Sector Total Investments* Information Technology 20.06% Financials 17.22 Health Care 13.66 Consumer Discretionary 13.59 Industrials 10.88 Consumer Staples 9.20 Energy 6.16 Utilities 3.50 Materials 3.24 Telecommunication Services 2.49 TOTAL 100.00% TEN LARGEST FUND HOLDINGS As of 3/31/16 Percentage of Security Total Investments* Apple Inc. 2.85% Microsoft Corp. 2.03 Exxon Mobil Corp. 1.59 Johnson & Johnson 1.36 General Electric Co. 1.36 Berkshire Hathaway Inc. Class B 1.20 Facebook Inc. Class A 1.12 AT&T Inc. 1.08 Amazon.com Inc. 1.03 Wells Fargo & Co. 1.02 TOTAL 14.64% * Excludes money market funds. M ANAGEMENT S D ISCUSSIONS OF F UND P ERFORMANCE 13

Management s Discussion of Fund Performance ishares RUSSELL MID-CAP ETF Performance as of March 31, 2016 Average Annual Total Returns Cumulative Total Returns NAV MARKET INDEX NAV MARKET INDEX 1 Year (4.18)% (4.22)% (4.04)% (4.18)% (4.22)% (4.04)% 5 Years 10.14% 10.14% 10.30% 62.07% 62.08% 63.28% 10 Years 7.30% 7.29% 7.45% 102.21% 102.19% 105.09% GROWTH OF $10,000 INVESTMENT (AT NET ASSET VALUE) $22,000 $20,000 $18,000 $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 Mar 12 Mar 13 Mar 14 Mar 15 Mar 16 $20,509 $20,221 Fund Index 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 20 for more information. Beginning Account Value (10/1/15) Actual Ending Account Value (3/31/16) Expenses Paid During Period a Shareholder Expenses Beginning Account Value (10/1/15) Hypothetical 5% Return Ending Account Value (3/31/16) Expenses Paid During Period a Annualized Expense Ratio $ 1,000.00 $ 1,058.70 $ 1.03 $ 1,000.00 $ 1,024.00 $ 1.01 0.20% a Expenses are calculated using the Fund s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (183 days) and divided by the number of days in the year (366 days). See Shareholder Expenses on page 20 for more information. 14 2016 ishares A NNUAL R EPORT TO S HAREHOLDERS

Management s Discussion of Fund Performance (Continued) ishares RUSSELL MID-CAP ETF The Russell Mid-Cap ETF (the Fund ) seeks to track the investment results of an index composed of mid-capitalization U.S. equities, as represented by the Russell Midcap 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 -4.18%, net of fees, while the total return for the Index was -4.04%. As represented by the Index, mid-capitalization U.S. stocks declined for the reporting period. Based on the Russell indexes, midcapitalization stocks underperformed large-capitalization stocks but outpaced the small-capitalization segment of the U.S. equity market for the reporting period. 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 healthcare and consumer discretionary sectors were also meaningful detractors from Index performance. In the healthcare sector, 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. Meanwhile, retail sales remained sluggish despite strong job growth, low interest rates, and declining energy prices, putting downward pressure on the consumer discretionary sector. Another noteworthy detractor from Index performance was the information technology sector, which fell amid weakness in midsized Internet software and services companies. 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, the food, beverage, and tobacco industry generated solid performance, as investors gravitated toward the industry s relatively stable revenues. ALLOCATION BY SECTOR As of 3/31/16 Percentage of Sector Total Investments* Financials 22.67% Consumer Discretionary 16.62 Information Technology 14.21 Industrials 13.02 Health Care 9.04 Utilities 6.77 Consumer Staples 6.34 Materials 5.62 Energy 4.67 Telecommunication Services 1.04 TOTAL 100.00% TEN LARGEST FUND HOLDINGS As of 3/31/16 Percentage of Security Total Investments* Southwest Airlines Co. 0.50% Aon PLC 0.49 Crown Castle International Corp. 0.48 Sysco Corp. 0.46 O Reilly Automotive Inc. 0.46 Intercontinental Exchange Inc. 0.46 McGraw Hill Financial Inc. 0.45 Intuit Inc. 0.45 Sempra Energy 0.43 PPL Corp. 0.42 TOTAL 4.60% * Excludes money market funds. M ANAGEMENT S D ISCUSSIONS OF F UND P ERFORMANCE 15

Management s Discussion of Fund Performance ishares RUSSELL MID-CAP GROWTH ETF Performance as of March 31, 2016 Average Annual Total Returns Cumulative Total Returns NAV MARKET INDEX NAV MARKET INDEX 1 Year (4.91)% (4.95)% (4.75)% (4.91)% (4.95)% (4.75)% 5 Years 9.79% 9.78% 9.99% 59.51% 59.47% 61.01% 10 Years 7.22% 7.22% 7.43% 100.85% 100.83% 104.82% GROWTH OF $10,000 INVESTMENT (AT NET ASSET VALUE) $24,000 $22,000 $20,000 $18,000 $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 Mar 12 Mar 13 Mar 14 Mar 15 Mar 16 $20,482 $20,085 Fund Index 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 20 for more information. Beginning Account Value (10/1/15) Actual Ending Account Value (3/31/16) Expenses Paid During Period a Shareholder Expenses Beginning Account Value (10/1/15) Hypothetical 5% Return Ending Account Value (3/31/16) Expenses Paid During Period a Annualized Expense Ratio $ 1,000.00 $ 1,046.40 $ 1.28 $ 1,000.00 $ 1,023.80 $ 1.26 0.25% a Expenses are calculated using the Fund s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (183 days) and divided by the number of days in the year (366 days). See Shareholder Expenses on page 20 for more information. 16 2016 ishares A NNUAL R EPORT TO S HAREHOLDERS

Management s Discussion of Fund Performance (Continued) ishares RUSSELL MID-CAP GROWTH ETF The Russell Mid-Cap Growth ETF (the Fund ) seeks to track the investment results of an index composed of midcapitalization U.S. equities that exhibit growth characteristics, as represented by the Russell Midcap 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 -4.91%, net of fees, while the total return for the Index was -4.75%. As represented by the Index, mid-capitalization U.S. growth stocks declined for the reporting period. Based on the Russell indexes, mid-capitalization stocks underperformed large-capitalization stocks but outpaced the small-capitalization segment of the U.S. equity market for the reporting period. Within the Russell Midcap Index, growth stocks underperformed value stocks. Nine 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 information technology and consumer discretionary sectors were also meaningful detractors from Index performance. Internet software and services companies detracted the most in the information technology sector as investors grew concerned about slowing user growth and its impact on profitability. In the consumer discretionary sector, consumer durables manufacturers and consumer services providers led the decline. Falling commodity prices put downward pressure on the energy and materials sectors of the Index. An economic slowdown in China the world s largest consumer of commodities dampened demand for energy and other commodities, resulting in lower prices. The only sector in the Index to post a positive return for the reporting period was the consumer staples sector, which tends to be relatively stable and less economically sensitive. 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 Percentage of Sector Total Investments* Consumer Discretionary 25.12% Information Technology 19.04 Industrials 16.40 Health Care 12.52 Financials 12.15 Consumer Staples 8.32 Materials 5.11 Energy 0.85 Telecommunication Services 0.38 Utilities 0.11 TOTAL 100.00% TEN LARGEST FUND HOLDINGS As of 3/31/16 Percentage of Security Total Investments* Southwest Airlines Co. 1.01% Aon PLC 1.00 Crown Castle International Corp. 0.98 O Reilly Automotive Inc. 0.94 McGraw Hill Financial Inc. 0.92 Intuit Inc. 0.90 AutoZone Inc. 0.84 Constellation Brands Inc. Class A 0.84 Dollar General Corp. 0.83 Ross Stores Inc. 0.81 TOTAL 9.07% * Excludes money market funds. M ANAGEMENT S D ISCUSSIONS OF F UND P ERFORMANCE 17

Management s Discussion of Fund Performance ishares RUSSELL MID-CAP VALUE ETF Performance as of March 31, 2016 Average Annual Total Returns Cumulative Total Returns NAV MARKET INDEX NAV MARKET INDEX 1 Year (3.56)% (3.58)% (3.39)% (3.56)% (3.58)% (3.39)% 5 Years 10.29% 10.29% 10.52% 63.20% 63.16% 64.86% 10 Years 7.06% 7.05% 7.23% 97.75% 97.68% 100.98% GROWTH OF $10,000 INVESTMENT (AT NET ASSET VALUE) $22,000 $20,000 $18,000 $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 Mar 12 Mar 13 Mar 14 Mar 15 Mar 16 $20,098 $19,775 Fund Index 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 20 for more information. Beginning Account Value (10/1/15) Actual Ending Account Value (3/31/16) Expenses Paid During Period a Shareholder Expenses Beginning Account Value (10/1/15) Hypothetical 5% Return Ending Account Value (3/31/16) Expenses Paid During Period a Annualized Expense Ratio $ 1,000.00 $ 1,070.80 $ 1.29 $ 1,000.00 $ 1,023.80 $ 1.26 0.25% a Expenses are calculated using the Fund s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (183 days) and divided by the number of days in the year (366 days). See Shareholder Expenses on page 20 for more information. 18 2016 ishares A NNUAL R EPORT TO S HAREHOLDERS

Management s Discussion of Fund Performance (Continued) ishares RUSSELL MID-CAP VALUE ETF The Russell Mid-Cap Value ETF (the Fund ) seeks to track the investment results of an index composed of midcapitalization U.S. equities that exhibit value characteristics, as represented by the Russell Midcap 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 -3.56%, net of fees, while the total return for the Index was -3.39%. As represented by the Index, mid-capitalization U.S. value stocks declined for the reporting period. Based on the Russell indexes, mid-capitalization stocks underperformed large-capitalization stocks but outpaced the small-capitalization segment of the U.S. equity market for the reporting period. Within the Russell Midcap Index, value stocks outperformed growth stocks. Seven 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 financials and consumer discretionary sectors were also meaningful detractors from Index performance. In the financials sector, 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. Meanwhile, retail sales remained sluggish despite strong job growth, low interest rates, and declining energy prices, putting downward pressure on specialty and multiline retailers in the consumer discretionary sector. The three sectors in the Index with positive returns were utilities, consumer staples, and information technology. The utilities and consumer staples sectors tend to be more stable and less economically sensitive, which were attractive characteristics in an environment of economic uncertainty. Utilities stocks also benefited from their relatively high dividend yields. Strong results among semiconductor manufacturers paced the advance in the information technology sector. ALLOCATION BY SECTOR As of 3/31/16 Percentage of Sector Total Investments* Financials 32.87% Utilities 13.23 Industrials 9.71 Information Technology 9.51 Energy 8.43 Consumer Discretionary 8.36 Materials 6.13 Health Care 5.64 Consumer Staples 4.43 Telecommunication Services 1.69 TOTAL 100.00% TEN LARGEST FUND HOLDINGS As of 3/31/16 Percentage of Security Total Investments* Sempra Energy 0.85% PPL Corp. 0.84 AvalonBay Communities Inc. 0.83 Synchrony Financial 0.79 Public Service Enterprise Group Inc. 0.79 Edison International 0.77 Boston Scientific Corp. 0.77 Prologis Inc. 0.76 Pioneer Natural Resources Co. 0.75 Consolidated Edison Inc. 0.74 TOTAL 7.89% * Excludes money market funds. M ANAGEMENT S D ISCUSSIONS OF F UND P ERFORMANCE 19

About Fund Performance Past performance is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at www.ishares.com. Performance results assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. The investment return and principal value of shares will vary with changes in market conditions. Shares may be worth more or less than their original cost when they are redeemed or sold in the market. Performance for certain funds may reflect a waiver of a portion of investment advisory fees. Without such a waiver, performance would have been lower. Net asset value or NAV is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return ( Market Price ) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund s NAV is calculated. Certain funds may have a NAV which is determined prior to the opening of regular trading on its listed exchange and their market returns are calculated using the midpoint of the bid/ask spread as of the opening of regular trading on the exchange. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively. An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. Shareholder Expenses As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares and (2) ongoing costs, including management fees and other fund expenses. The expense example, which is based on an investment of $1,000 invested on 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. 20 2016 ishares A NNUAL R EPORT TO S HAREHOLDERS

Summary Schedule of Investments ishares CORE U.S. GROWTH ETF March 31, 2016 COMMON STOCKS AEROSPACE & DEFENSE Boeing Co. (The) 49,918 $ 6,336,591 0.73% Honeywell International Inc. 59,900 6,711,795 0.77 Other securities a 9,805,960 1.14 22,854,346 2.64 AIR FREIGHT & LOGISTICS United Parcel Service Inc. Class B 53,760 5,670,067 0.65 Other securities a 3,197,998 0.37 8,868,065 1.02 AIRLINES Other securities a 10,691,187 1.23 10,691,187 1.23 AUTO COMPONENTS Other securities a 4,581,072 0.53 4,581,072 0.53 AUTOMOBILES Other securities a 2,389,822 0.28 2,389,822 0.28 BANKS Other securities a 1,498,565 0.17 1,498,565 0.17 BEVERAGES Coca-Cola Co. (The) 300,443 13,937,551 1.61 PepsiCo Inc. 113,096 11,590,078 1.34 Other securities a 6,916,262 0.79 32,443,891 3.74 BIOTECHNOLOGY AbbVie Inc. 126,837 7,244,929 0.84 Amgen Inc. 58,259 8,734,772 1.01 Biogen Inc. b 17,083 4,447,047 0.51 Celgene Corp. b 60,778 6,083,270 0.70 Gilead Sciences Inc. 104,744 9,621,784 1.11 Other securities a 17,218,960 1.98 53,350,762 6.15 BUILDING PRODUCTS Other securities a 3,546,936 0.41 3,546,936 0.41 CAPITAL MARKETS BlackRock Inc. c 3,073 1,046,572 0.12 Other securities a $ 8,819,663 1.02% 9,866,235 1.14 CHEMICALS Other securities a 24,446,287 2.82 24,446,287 2.82 COMMERCIAL SERVICES & SUPPLIES Other securities a 5,326,467 0.61 5,326,467 0.61 COMMUNICATIONS EQUIPMENT Other securities a 4,385,739 0.51 4,385,739 0.51 CONSTRUCTION & ENGINEERING Other securities a 455,826 0.05 455,826 0.05 CONSTRUCTION MATERIALS Other securities a 744,206 0.09 744,206 0.09 CONSUMER FINANCE Other securities a 1,378,187 0.16 1,378,187 0.16 CONTAINERS & PACKAGING Other securities a 4,702,614 0.54 4,702,614 0.54 DISTRIBUTORS Other securities a 2,197,164 0.25 2,197,164 0.25 DIVERSIFIED CONSUMER SERVICES Other securities a 1,850,328 0.21 1,850,328 0.21 DIVERSIFIED FINANCIAL SERVICES Other securities a 7,494,158 0.86 7,494,158 0.86 DIVERSIFIED TELECOMMUNICATION SERVICES Verizon Communications Inc. 289,988 15,682,551 1.81 Other securities a 4,008,923 0.46 19,691,474 2.27 ELECTRIC UTILITIES Other securities a 202,027 0.02 202,027 0.02 S UMMARY S CHEDULES OF I NVESTMENTS 21

Summary Schedule of Investments (Continued) ishares CORE U.S. GROWTH ETF March 31, 2016 ELECTRICAL EQUIPMENT Other securities a $ 5,577,192 0.64% 5,577,192 0.64 ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS Other securities a 4,843,530 0.56 4,843,530 0.56 ENERGY EQUIPMENT & SERVICES Other securities a 1,374,996 0.16 1,374,996 0.16 FOOD & STAPLES RETAILING Costco Wholesale Corp. 33,716 5,312,967 0.61 CVS Health Corp. 80,146 8,313,545 0.96 Other securities a 6,566,530 0.76 20,193,042 2.33 FOOD PRODUCTS Kraft Heinz Co. (The) 45,366 3,563,953 0.41 Other securities a 11,109,173 1.28 14,673,126 1.69 HEALTH CARE EQUIPMENT & SUPPLIES Other securities a 18,656,663 2.15 18,656,663 2.15 HEALTH CARE PROVIDERS & SERVICES UnitedHealth Group Inc. 69,292 8,931,739 1.03 Other securities a 21,507,966 2.48 30,439,705 3.51 HEALTH CARE TECHNOLOGY Other securities a 2,681,528 0.31 2,681,528 0.31 HOTELS, RESTAURANTS & LEISURE McDonald s Corp. 67,684 8,506,525 0.98 Starbucks Corp. 114,978 6,864,187 0.79 Other securities a 16,102,501 1.86 31,473,213 3.63 HOUSEHOLD DURABLES Other securities a 5,496,816 0.63 5,496,816 0.63 HOUSEHOLD PRODUCTS Colgate-Palmolive Co. 60,795 4,295,167 0.50 Other securities a 5,287,161 0.61 9,582,328 1.11 INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS Other securities a $ 102,866 0.01% 102,866 0.01 INDUSTRIAL CONGLOMERATES 3M Co. 48,606 8,099,218 0.93 Other securities a 1,496,101 0.18 9,595,319 1.11 INSURANCE Other securities a 4,541,874 0.52 4,541,874 0.52 INTERNET & CATALOG RETAIL Amazon.com Inc. b 29,205 17,337,256 2.00 Netflix Inc. b,d 32,524 3,324,929 0.38 Priceline Group Inc. (The) b 3,973 5,121,038 0.59 Other securities a 2,877,385 0.34 28,660,608 3.31 INTERNET SOFTWARE & SERVICES Alphabet Inc. Class A b 22,087 16,850,172 1.94 Alphabet Inc. Class C b 22,538 16,789,683 1.94 Facebook Inc. Class A b 165,802 18,918,008 2.18 Other securities a 9,163,587 1.06 61,721,450 7.12 IT SERVICES Accenture PLC Class A 48,135 5,554,779 0.64 International Business Machines Corp. 38,619 5,848,848 0.67 MasterCard Inc. Class A 76,600 7,238,700 0.83 PayPal Holdings Inc. b 93,104 3,593,814 0.41 Visa Inc. Class A d 149,980 11,470,470 1.32 Other securities a 19,694,634 2.29 53,401,245 6.16 LEISURE PRODUCTS Other securities a 1,625,489 0.19 1,625,489 0.19 LIFE SCIENCES TOOLS & SERVICES Other securities a 6,587,153 0.76 6,587,153 0.76 MACHINERY Other securities a 13,200,220 1.52 13,200,220 1.52 22 2016 ishares A NNUAL R EPORT TO S HAREHOLDERS

Summary Schedule of Investments (Continued) ishares CORE U.S. GROWTH ETF March 31, 2016 MARINE Other securities a $ 120,108 0.01% 120,108 0.01 MEDIA Comcast Corp. Class A 173,256 10,582,476 1.22 Time Warner Cable Inc. 21,664 4,432,888 0.51 Walt Disney Co. (The) 130,006 12,910,896 1.49 Other securities a 16,166,793 1.86 44,093,053 5.08 METALS & MINING Other securities a 516,325 0.06 516,325 0.06 MULTI-UTILITIES Other securities a 171,499 0.02 171,499 0.02 MULTILINE RETAIL Other securities a 5,195,491 0.60 5,195,491 0.60 OIL, GAS & CONSUMABLE FUELS Other securities a 3,336,639 0.39 3,336,639 0.39 PAPER & FOREST PRODUCTS Other securities a 486,004 0.06 486,004 0.06 PERSONAL PRODUCTS Other securities a 2,144,428 0.25 2,144,428 0.25 PHARMACEUTICALS Allergan PLC b 13,595 3,643,868 0.42 Bristol-Myers Squibb Co. 127,731 8,159,456 0.94 Eli Lilly & Co. 74,982 5,399,454 0.62 Other securities a 10,432,238 1.21 27,635,016 3.19 PROFESSIONAL SERVICES Other securities a 5,301,013 0.61 5,301,013 0.61 REAL ESTATE INVESTMENT TRUSTS (REITS) American Tower Corp. 32,427 3,319,552 0.38 Simon Property Group Inc. 23,854 4,954,237 0.57 Other securities a 15,637,410 1.81 23,911,199 2.76 REAL ESTATE MANAGEMENT & DEVELOPMENT Other securities a $ 1,279,917 0.15% 1,279,917 0.15 ROAD & RAIL Union Pacific Corp. 67,097 5,337,566 0.62 Other securities a 2,876,442 0.33 8,214,008 0.95 SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT Texas Instruments Inc. 79,727 4,577,924 0.53 Other securities a 15,863,548 1.83 20,441,472 2.36 SOFTWARE Adobe Systems Inc. b 38,341 3,596,386 0.41 Microsoft Corp. 351,427 19,409,313 2.24 Oracle Corp. 145,676 5,959,605 0.69 salesforce.com inc. b 50,275 3,711,803 0.43 Other securities a 16,871,827 1.94 49,548,934 5.71 SPECIALTY RETAIL Home Depot Inc. (The) 99,527 13,279,888 1.53 Lowe s Companies Inc. 72,929 5,524,372 0.64 TJX Companies Inc. (The) 52,142 4,085,326 0.47 Other securities a 18,508,984 2.13 41,398,570 4.77 TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS Apple Inc. 441,376 48,105,570 5.55 Other securities a 1,189,112 0.13 49,294,682 5.68 TEXTILES, APPAREL & LUXURY GOODS NIKE Inc. Class B 103,915 6,387,655 0.74 Other securities a 7,256,760 0.83 13,644,415 1.57 THRIFTS & MORTGAGE FINANCE Other securities a 385,033 0.04 385,033 0.04 TOBACCO Altria Group Inc. 141,794 8,884,812 1.02 Philip Morris International Inc. 59,117 5,799,969 0.67 Other securities a 3,331,054 0.39 18,015,835 2.08 S UMMARY S CHEDULES OF I NVESTMENTS 23

Summary Schedule of Investments (Continued) ishares CORE U.S. GROWTH ETF March 31, 2016 TRADING COMPANIES & DISTRIBUTORS Other securities a $ 3,680,444 0.42% 3,680,444 0.42 WATER UTILITIES Other securities a 12,523 12,523 WIRELESS TELECOMMUNICATION SERVICES Other securities a 94,613 0.01 94,613 0.01 TOTAL COMMON STOCKS (Cost: $891,393,778) 866,314,942 99.89 RIGHTS TEXTILES, APPAREL & LUXURY GOODS Other securities a 446 446 TOTAL RIGHTS (Cost: $0) 446 WARRANTS OIL, GAS & CONSUMABLE FUELS Other securities a TOTAL WARRANTS (Cost: $0) SHORT-TERM INVESTMENTS MONEY MARKET FUNDS BlackRock Cash Funds: Institutional, SL Agency Shares 0.50% c,e,f 37,701,739 $ 37,701,739 4.34% BlackRock Cash Funds: Prime, SL Agency Shares 0.51% c,e,f 1,914,998 1,914,998 0.22 BlackRock Cash Funds: Treasury, SL Agency Shares 0.28% c,e 849,649 849,649 0.10 40,466,386 4.66 TOTAL SHORT-TERM INVESTMENTS (Cost: $40,466,386) 40,466,386 4.66 TOTAL INVESTMENTS IN SECURITIES (Cost: $931,860,164) 906,781,774 104.55 Other, Less Liabilities (39,498,636) (4.55) NET ASSETS $867,283,138 100.00% a Other securities are those securities, which individually, are not one of the 50 largest unaffiliated issuers and which represent less than one percent of the net assets of the Fund as of March 31, 2016. Other securities may include securities on loan and non-income earning securities. b Non-income earning security. c Affiliated issuer. See Note 2. d All or a portion of this security represents a security on loan. See Note 1. e The rate quoted is the annualized seven-day yield of the fund at period end. f All or a portion of this security represents an investment of securities lending collateral. See Note 1. Open futures contracts as of March 31, 2016 were as follows: Issue Number of Contracts Purchased (Sold) Expiration Exchange Notional Value Unrealized Appreciation (Depreciation) Russell 2000 Mini 2 Jun. 2016 ICE Markets Equity $221,920 $ 8,234 S&P 500 E-Mini 6 Jun. 2016 Chicago Mercantile 615,450 21,539 Net unrealized appreciation $29,773 See notes to financial statements. 24 2016 ishares A NNUAL R EPORT TO S HAREHOLDERS

Summary Schedule of Investments ishares CORE U.S. VALUE ETF March 31, 2016 COMMON STOCKS AEROSPACE & DEFENSE Raytheon Co. 20,594 $ 2,525,442 0.35% United Technologies Corp. 51,211 5,126,221 0.71 Other securities a 7,469,280 1.04 15,120,943 2.10 AIR FREIGHT & LOGISTICS Other securities a 2,038,567 0.28 2,038,567 0.28 AIRLINES Other securities a 501,507 0.07 501,507 0.07 AUTO COMPONENTS Other securities a 2,688,975 0.37 2,688,975 0.37 AUTOMOBILES Ford Motor Co. 263,289 3,554,401 0.49 General Motors Co. 108,379 3,406,352 0.47 Other securities a 301,521 0.05 7,262,274 1.01 BANKS Bank of America Corp. 708,086 9,573,323 1.33 Citigroup Inc. 204,574 8,540,965 1.19 JPMorgan Chase & Co. 250,207 14,817,259 2.06 PNC Financial Services Group Inc. (The) b 34,932 2,954,199 0.41 U.S. Bancorp. 112,957 4,584,925 0.64 Wells Fargo & Co. 314,106 15,190,166 2.11 Other securities a 21,908,212 3.03 77,569,049 10.77 BEVERAGES Other securities a 1,100,879 0.15 1,100,879 0.15 BIOTECHNOLOGY Other securities a 907,365 0.13 907,365 0.13 BUILDING PRODUCTS Other securities a 1,165,916 0.16 1,165,916 0.16 CAPITAL MARKETS BlackRock Inc. b 5,782 $ 1,969,176 0.27% Goldman Sachs Group Inc. (The) 29,131 4,572,984 0.63 Morgan Stanley 103,445 2,587,159 0.36 Other securities a 9,573,039 1.34 18,702,358 2.60 CHEMICALS Dow Chemical Co. (The) 65,559 3,334,331 0.46 Other securities a 7,387,524 1.03 10,721,855 1.49 COMMERCIAL SERVICES & SUPPLIES Other securities a 5,423,197 0.75 5,423,197 0.75 COMMUNICATIONS EQUIPMENT Cisco Systems Inc. 342,907 9,762,562 1.35 Other securities a 2,736,539 0.38 12,499,101 1.73 CONSTRUCTION & ENGINEERING Other securities a 2,534,495 0.35 2,534,495 0.35 CONSTRUCTION MATERIALS Other securities a 1,454,304 0.20 1,454,304 0.20 CONSUMER FINANCE American Express Co. 44,507 2,732,730 0.38 Other securities a 6,751,693 0.94 9,484,423 1.32 CONTAINERS & PACKAGING Other securities a 2,357,335 0.33 2,357,335 0.33 DISTRIBUTORS Other securities a 149,964 0.02 149,964 0.02 DIVERSIFIED CONSUMER SERVICES Other securities a 621,362 0.09 621,362 0.09 DIVERSIFIED FINANCIAL SERVICES Berkshire Hathaway Inc. Class B c 117,243 16,634,437 2.31 Other securities a 4,672,964 0.65 21,307,401 2.96 S UMMARY S CHEDULES OF I NVESTMENTS 25

Summary Schedule of Investments (Continued) ishares CORE U.S. VALUE ETF March 31, 2016 DIVERSIFIED TELECOMMUNICATION SERVICES AT&T Inc. 350,089 $ 13,712,986 1.90% Other securities a 4,523,951 0.63 18,236,937 2.53 ELECTRIC UTILITIES Duke Energy Corp. 46,632 3,762,270 0.52 NextEra Energy Inc. 29,949 3,544,165 0.49 Southern Co. (The) 61,249 3,168,411 0.44 Other securities a 18,267,505 2.54 28,742,351 3.99 ELECTRICAL EQUIPMENT Other securities a 3,616,030 0.50 3,616,030 0.50 ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS Other securities a 6,031,517 0.84 6,031,517 0.84 ENERGY EQUIPMENT & SERVICES Schlumberger Ltd. 75,255 5,550,056 0.77 Other securities a 8,398,850 1.17 13,948,906 1.94 FOOD & STAPLES RETAILING Wal-Mart Stores Inc. 106,503 7,294,391 1.01 Walgreens Boots Alliance Inc. 49,218 4,146,124 0.58 Other securities a 2,500,507 0.34 13,941,022 1.93 FOOD PRODUCTS Mondelez International Inc. Class A 109,682 4,400,442 0.61 Other securities a 8,259,436 1.15 12,659,878 1.76 GAS UTILITIES Other securities a 3,754,171 0.52 3,754,171 0.52 HEALTH CARE EQUIPMENT & SUPPLIES Abbott Laboratories 100,387 4,199,188 0.58 Medtronic PLC 96,085 7,206,375 1.00 Other securities a 6,966,009 0.97 18,371,572 2.55 HEALTH CARE PROVIDERS & SERVICES Other securities a 11,020,054 1.53 11,020,054 1.53 HEALTH CARE TECHNOLOGY Other securities a $ 118,793 0.02% 118,793 0.02 HOTELS, RESTAURANTS & LEISURE Other securities a 4,601,183 0.64 4,601,183 0.64 HOUSEHOLD DURABLES Other securities a 4,332,973 0.60 4,332,973 0.60 HOUSEHOLD PRODUCTS Procter & Gamble Co. (The) 182,914 15,055,651 2.09 Other securities a 1,724,030 0.24 16,779,681 2.33 INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS Other securities a 1,656,847 0.23 1,656,847 0.23 INDUSTRIAL CONGLOMERATES Danaher Corp. 32,454 3,078,586 0.43 General Electric Co. 634,061 20,156,799 2.80 Other securities a 1,146,912 0.15 24,382,297 3.38 INSURANCE American International Group Inc. 77,558 4,192,010 0.58 Chubb Ltd. 31,348 3,735,114 0.52 MetLife Inc. 63,195 2,776,788 0.39 Other securities a 27,378,449 3.79 38,082,361 5.28 INTERNET & CATALOG RETAIL Other securities a 738,848 0.10 738,848 0.10 INTERNET SOFTWARE & SERVICES Other securities a 2,671,354 0.37 2,671,354 0.37 IT SERVICES International Business Machines Corp. 27,248 4,126,710 0.57 Other securities a 4,624,053 0.64 8,750,763 1.21 26 2016 ishares A NNUAL R EPORT TO S HAREHOLDERS

Summary Schedule of Investments (Continued) ishares CORE U.S. VALUE ETF March 31, 2016 LEISURE PRODUCTS Other securities a $ 1,260,217 0.17% 1,260,217 0.17 LIFE SCIENCES TOOLS & SERVICES Other securities a 4,572,938 0.63 4,572,938 0.63 MACHINERY Caterpillar Inc. 33,649 2,575,495 0.36 Other securities a 10,123,971 1.40 12,699,466 1.76 MARINE Other securities a 268,899 0.04 268,899 0.04 MEDIA Other securities a 9,056,738 1.26 9,056,738 1.26 METALS & MINING Other securities a 5,920,668 0.82 5,920,668 0.82 MULTI-UTILITIES Dominion Resources Inc./VA 38,034 2,857,114 0.40 Other securities a 12,776,892 1.77 15,634,006 2.17 MULTILINE RETAIL Target Corp. 37,152 3,056,867 0.42 Other securities a 1,250,870 0.18 4,307,737 0.60 OIL, GAS & CONSUMABLE FUELS Chevron Corp. 126,786 12,095,384 1.68 ConocoPhillips 83,142 3,348,128 0.46 Exxon Mobil Corp. 281,891 23,563,269 3.27 Occidental Petroleum Corp. 51,796 3,544,400 0.49 Phillips 66 36,525 3,162,700 0.44 Other securities a 27,541,317 3.83 73,255,198 10.17 PAPER & FOREST PRODUCTS Other securities a 337,710 0.05 337,710 0.05 PERSONAL PRODUCTS Other securities a 718,268 0.10 718,268 0.10 PHARMACEUTICALS Allergan PLC c 14,502 $ 3,886,971 0.54% Johnson & Johnson 162,844 17,619,721 2.45 Merck & Co. Inc. 168,772 8,929,727 1.24 Pfizer Inc. 415,163 12,305,431 1.71 Other securities a 2,010,807 0.27 44,752,657 6.21 PROFESSIONAL SERVICES Other securities a 1,636,253 0.23 1,636,253 0.23 REAL ESTATE INVESTMENT TRUSTS (REITS) PennyMac Mortgage Investment Trust b 2,669 36,405 0.01 Other securities a 42,116,129 5.84 42,152,534 5.85 REAL ESTATE MANAGEMENT & DEVELOPMENT Other securities a 857,947 0.12 857,947 0.12 ROAD & RAIL Other securities a 4,269,749 0.59 4,269,749 0.59 SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT Intel Corp. 297,466 9,623,025 1.34 QUALCOMM Inc. 85,948 4,395,381 0.61 Other securities a 8,158,017 1.13 22,176,423 3.08 SOFTWARE Microsoft Corp. 236,165 13,043,393 1.81 Oracle Corp. 85,462 3,496,250 0.49 Other securities a 4,802,983 0.66 21,342,626 2.96 SPECIALTY RETAIL Other securities a 3,777,325 0.52 3,777,325 0.52 TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS EMC Corp./MA 120,222 3,203,916 0.44 Other securities a 6,226,613 0.87 9,430,529 1.31 TEXTILES, APPAREL & LUXURY GOODS Other securities a 1,811,480 0.25 1,811,480 0.25 S UMMARY S CHEDULES OF I NVESTMENTS 27

Summary Schedule of Investments (Continued) ishares CORE U.S. VALUE ETF March 31, 2016 THRIFTS & MORTGAGE FINANCE PennyMac Financial Services Inc. Class A b,c 726 $ 8,538 0.00% Other securities a 2,478,449 0.35 2,486,987 0.35 TOBACCO Philip Morris International Inc. 52,437 5,144,594 0.71 Other securities a 575,438 0.08 5,720,032 0.79 TRADING COMPANIES & DISTRIBUTORS Other securities a 1,420,535 0.20 1,420,535 0.20 TRANSPORTATION INFRASTRUCTURE Other securities a 371,058 0.05 371,058 0.05 WATER UTILITIES Other securities a 1,568,989 0.22 1,568,989 0.22 WIRELESS TELECOMMUNICATION SERVICES Other securities a 1,166,709 0.16 1,166,709 0.16 TOTAL COMMON STOCKS (Cost: $767,460,165) 719,022,486 99.79 WARRANTS SHORT-TERM INVESTMENTS MONEY MARKET FUNDS BlackRock Cash Funds: Institutional, SL Agency Shares 0.50% b,d,e 16,880,958 $ 16,880,958 2.34% BlackRock Cash Funds: Prime, SL Agency Shares 0.51% b,d,e 857,440 857,440 0.12 BlackRock Cash Funds: Treasury, SL Agency Shares 0.28% b,d 1,094,262 1,094,262 0.15 18,832,660 2.61 TOTAL SHORT-TERM INVESTMENTS (Cost: $18,832,660) 18,832,660 2.61 TOTAL INVESTMENTS IN SECURITIES (Cost: $786,292,825) 737,855,146 102.40 Other, Less Liabilities (17,314,140) (2.40) NET ASSETS $720,541,006 100.00% a Other securities are those securities, which individually, are not one of the 50 largest unaffiliated issuers and which represent less than one percent of the net assets of the Fund as of March 31, 2016. Other securities may include securities on loan and non-income earning securities. b Affiliated issuer. See Note 2. c Non-income earning security. d The rate quoted is the annualized seven-day yield of the fund at period end. e All or a portion of this security represents an investment of securities lending collateral. See Note 1. OIL, GAS & CONSUMABLE FUELS Other securities a TOTAL WARRANTS (Cost: $0) Open futures contracts as of March 31, 2016 were as follows: Issue Number of Contracts Purchased (Sold) Expiration Exchange Notional Value Unrealized Appreciation (Depreciation) S&P 500 E-Mini 11 Jun. 2016 Chicago Mercantile $1,128,325 $39,488 S&P MidCap 400 E-Mini 2 Jun. 2016 Chicago Mercantile 288,240 13,435 Net unrealized appreciation $52,923 See notes to financial statements. 28 2016 ishares A NNUAL R EPORT TO S HAREHOLDERS

Summary Schedule of Investments ishares MICRO-CAP ETF March 31, 2016 COMMON STOCKS AEROSPACE & DEFENSE Other securities a $ 5,735,994 0.83% 5,735,994 0.83 AIR FREIGHT & LOGISTICS Air Transport Services Group Inc. b,c 112,904 1,736,463 0.25 Echo Global Logistics Inc. b 63,574 1,726,670 0.25 Other securities a 1,013,514 0.15 4,476,647 0.65 AUTO COMPONENTS Other securities a 7,217,335 1.04 7,217,335 1.04 AUTOMOBILES Other securities a 1,246,604 0.18 1,246,604 0.18 BANKS Ameris Bancorp. 69,336 2,050,959 0.30 Banc of California Inc. 94,656 1,656,480 0.24 Banner Corp. 44,917 1,888,311 0.27 Berkshire Hills Bancorp. Inc. 65,702 1,766,727 0.25 First Merchants Corp. 87,209 2,055,516 0.30 Lakeland Financial Corp. 36,824 1,685,803 0.24 Renasant Corp. 86,717 2,853,856 0.41 ServisFirst Bancshares Inc. 49,063 2,178,397 0.31 Tompkins Financial Corp. 32,338 2,069,632 0.30 TowneBank/ Portsmouth VA 98,240 1,885,226 0.27 Yadkin Financial Corp. 95,777 2,267,042 0.33 Other securities a 86,833,259 12.52 109,191,208 15.74 BEVERAGES Other securities a 1,448,226 0.21 1,448,226 0.21 BIOTECHNOLOGY Exelixis Inc. b,c 476,647 1,906,588 0.27 Five Prime Therapeutics Inc. b,c 47,865 $ 1,944,755 0.28% Other securities a 45,991,182 6.64 49,842,525 7.19 BUILDING PRODUCTS American Woodmark Corp. b 28,028 2,090,609 0.30 Gibraltar Industries Inc. b 65,636 1,877,190 0.27 Other securities a 4,754,031 0.69 8,721,830 1.26 CAPITAL MARKETS Other securities a 7,721,729 1.11 7,721,729 1.11 CHEMICALS Other securities a 7,822,216 1.13 7,822,216 1.13 COMMERCIAL SERVICES & SUPPLIES Team Inc. b,c 61,301 1,862,324 0.27 Other securities a 8,147,330 1.17 10,009,654 1.44 COMMUNICATIONS EQUIPMENT Other securities a 12,287,625 1.77 12,287,625 1.77 CONSTRUCTION & ENGINEERING Comfort Systems USA Inc. 78,846 2,504,937 0.36 Other securities a 4,983,734 0.72 7,488,671 1.08 CONSTRUCTION MATERIALS U.S. Concrete Inc. b,c 31,243 1,861,458 0.27 Other securities a 266,744 0.04 2,128,202 0.31 CONSUMER FINANCE Other securities a 1,828,612 0.26 1,828,612 0.26 CONTAINERS & PACKAGING Other securities a 1,560,039 0.22 1,560,039 0.22 DISTRIBUTORS Other securities a 746,217 0.11 746,217 0.11 S UMMARY S CHEDULES OF I NVESTMENTS 29

Summary Schedule of Investments (Continued) ishares MICRO-CAP ETF March 31, 2016 DIVERSIFIED CONSUMER SERVICES Other securities a $ 7,425,524 1.07% 7,425,524 1.07 DIVERSIFIED FINANCIAL SERVICES Other securities a 2,679,993 0.39 2,679,993 0.39 DIVERSIFIED TELECOMMUNICATION SERVICES 8x8 Inc. b,c 197,774 1,989,606 0.29 Other securities a 8,359,085 1.20 10,348,691 1.49 ELECTRIC UTILITIES Other securities a 327,632 0.05 327,632 0.05 ELECTRICAL EQUIPMENT Other securities a 5,719,520 0.82 5,719,520 0.82 ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS Other securities a 16,375,466 2.36 16,375,466 2.36 ENERGY EQUIPMENT & SERVICES Other securities a 8,255,032 1.19 8,255,032 1.19 FOOD & STAPLES RETAILING Other securities a 1,616,014 0.23 1,616,014 0.23 FOOD PRODUCTS Calavo Growers Inc. 31,595 1,802,811 0.26 Other securities a 5,551,643 0.80 7,354,454 1.06 GAS UTILITIES Chesapeake Utilities Corp. 32,020 2,016,299 0.29 Other securities a 716,073 0.10 2,732,372 0.39 HEALTH CARE EQUIPMENT & SUPPLIES Cynosure Inc. Class A b 46,962 2,071,963 0.30 Merit Medical Systems Inc. b 102,726 1,899,404 0.27 Orthofix International NV b 39,769 1,651,209 0.24 Other securities a $ 22,639,092 3.26% 28,261,668 4.07 HEALTH CARE PROVIDERS & SERVICES Other securities a 15,501,544 2.23 15,501,544 2.23 HEALTH CARE TECHNOLOGY Other securities a 3,951,719 0.57 3,951,719 0.57 HOTELS, RESTAURANTS & LEISURE Denny s Corp. b,c 178,066 1,844,764 0.27 Other securities a 15,902,625 2.29 17,747,389 2.56 HOUSEHOLD DURABLES Cavco Industries Inc. b 18,648 1,742,842 0.25 Universal Electronics Inc. b 30,824 1,910,780 0.28 Other securities a 11,515,000 1.66 15,168,622 2.19 HOUSEHOLD PRODUCTS Other securities a 2,493,400 0.36 2,493,400 0.36 INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS Other securities a 630,973 0.09 630,973 0.09 INSURANCE AMERISAFE Inc. 40,383 2,121,723 0.31 Stewart Information Services Corp. 52,886 1,918,704 0.28 Other securities a 11,564,210 1.66 15,604,637 2.25 INTERNET & CATALOG RETAIL Other securities a 5,473,643 0.79 5,473,643 0.79 INTERNET SOFTWARE & SERVICES Other securities a 20,445,005 2.95 20,445,005 2.95 IT SERVICES Perficient Inc. b 76,511 1,661,819 0.24 Other securities a 8,421,269 1.21 10,083,088 1.45 30 2016 ishares A NNUAL R EPORT TO S HAREHOLDERS

Summary Schedule of Investments (Continued) ishares MICRO-CAP ETF March 31, 2016 LEISURE PRODUCTS Smith & Wesson Holding Corp. b,c 115,565 $ 3,076,340 0.44% Other securities a 4,147,814 0.60 7,224,154 1.04 LIFE SCIENCES TOOLS & SERVICES Affymetrix Inc. b 164,874 2,309,885 0.33 Other securities a 4,900,333 0.71 7,210,218 1.04 MACHINERY Federal Signal Corp. 131,629 1,745,401 0.25 Other securities a 14,703,269 2.12 16,448,670 2.37 MARINE Other securities a 738,264 0.11 738,264 0.11 MEDIA New Media Investment Group Inc. 103,560 1,723,238 0.25 Other securities a 7,883,018 1.14 9,606,256 1.39 METALS & MINING Other securities a 4,303,185 0.62 4,303,185 0.62 MULTI-UTILITIES Other securities a 1,284,218 0.19 1,284,218 0.19 MULTILINE RETAIL Other securities a 2,023,832 0.29 2,023,832 0.29 OIL, GAS & CONSUMABLE FUELS Callon Petroleum Co. b 206,944 1,831,454 0.26 Other securities a 12,659,645 1.83 14,491,099 2.09 PAPER & FOREST PRODUCTS Neenah Paper Inc. 36,084 2,297,107 0.33 2,297,107 0.33 PERSONAL PRODUCTS Other securities a 3,243,159 0.47 3,243,159 0.47 PHARMACEUTICALS Other securities a $ 21,382,534 3.08% 21,382,534 3.08 PROFESSIONAL SERVICES Other securities a 9,255,861 1.33 9,255,861 1.33 REAL ESTATE INVESTMENT TRUSTS (REITS) Agree Realty Corp. 43,939 1,690,333 0.24 Apollo Commercial Real Estate Finance Inc. 122,200 1,991,860 0.29 Rexford Industrial Realty Inc. c 118,522 2,152,360 0.31 Terreno Realty Corp. c 92,106 2,159,886 0.31 Universal Health Realty Income Trust c 28,826 1,621,462 0.23 Other securities a 30,698,926 4.43 40,314,827 5.81 REAL ESTATE MANAGEMENT & DEVELOPMENT Other securities a 3,960,217 0.57 3,960,217 0.57 ROAD & RAIL Other securities a 2,917,375 0.42 2,917,375 0.42 SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT Inphi Corp. b,c 85,682 2,856,638 0.41 MaxLinear Inc. Class A b 117,163 2,167,516 0.31 Other securities a 18,116,555 2.62 23,140,709 3.34 SOFTWARE Callidus Software Inc. b,c 117,197 1,954,846 0.28 Gigamon Inc. b,c 58,697 1,820,781 0.26 Other securities a 16,608,562 2.40 20,384,189 2.94 SPECIALTY RETAIL Other securities a 10,634,093 1.53 10,634,093 1.53 TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS Other securities a 3,710,908 0.54 3,710,908 0.54 S UMMARY S CHEDULES OF I NVESTMENTS 31

Summary Schedule of Investments (Continued) ishares MICRO-CAP ETF March 31, 2016 TEXTILES, APPAREL & LUXURY GOODS Other securities a $ 6,075,033 0.88% 6,075,033 0.88 THRIFTS & MORTGAGE FINANCE Meridian Bancorp. Inc. 120,949 1,683,610 0.24 WSFS Financial Corp. 66,289 2,155,718 0.31 Other securities a 25,146,319 3.63 28,985,647 4.18 TOBACCO Other securities a 426,003 0.06 426,003 0.06 TRADING COMPANIES & DISTRIBUTORS Other securities a 4,189,284 0.60 4,189,284 0.60 WATER UTILITIES Other securities a 5,533,458 0.80 5,533,458 0.80 WIRELESS TELECOMMUNICATION SERVICES Shenandoah Telecommunications Co. 102,044 2,729,677 0.39 Other securities a 2,329,891 0.34 5,059,568 0.73 TOTAL COMMON STOCKS (Cost: $825,975,371) 692,509,588 99.84 RIGHTS OIL, GAS & CONSUMABLE FUELS Other securities a TEXTILES, APPAREL & LUXURY GOODS Other securities a 8,306 8,306 SHORT-TERM INVESTMENTS MONEY MARKET FUNDS BlackRock Cash Funds: Institutional, SL Agency Shares 0.50% d,e,f 141,275,635 $ 141,275,635 20.37% BlackRock Cash Funds: Prime, SL Agency Shares 0.51% d,e,f 7,175,863 7,175,863 1.03 BlackRock Cash Funds: Treasury, SL Agency Shares 0.28% d,e 472,717 472,717 0.07 148,924,215 21.47 TOTAL SHORT-TERM INVESTMENTS (Cost: $148,924,215) 148,924,215 21.47 TOTAL INVESTMENTS IN SECURITIES (Cost: $974,899,586) 841,442,109 121.31 Other, Less Liabilities (147,808,640) (21.31) NET ASSETS $ 693,633,469 100.00% a Other securities are those securities, which individually, are not one of the 50 largest unaffiliated issuers and which represent less than one percent of the net assets of the Fund as of March 31, 2016. Other securities may include securities on loan and non-income earning securities. b Non-income earning security. c All or a portion of this security represents a security on loan. See Note 1. d Affiliated issuer. See Note 2. e The rate quoted is the annualized seven-day yield of the fund at period end. f All or a portion of this security represents an investment of securities lending collateral. See Note 1. TOTAL RIGHTS (Cost: $0) 8,306 Open futures contracts as of March 31, 2016 were as follows: Issue Number of Contracts Purchased (Sold) Expiration Exchange Notional Value Unrealized Appreciation (Depreciation) Russell 2000 Mini 8 Jun. 2016 ICE Markets Equity $887,680 $32,094 See notes to financial statements. 32 2016 ishares A NNUAL R EPORT TO S HAREHOLDERS

Summary Schedule of Investments ishares RUSSELL 3000 ETF March 31, 2016 COMMON STOCKS AEROSPACE & DEFENSE Boeing Co. (The) 177,702 $ 22,557,492 0.38% Honeywell International Inc. 213,639 23,938,250 0.40 United Technologies Corp. 228,597 22,882,560 0.38 Other securities a 73,388,423 1.21 142,766,725 2.37 AIR FREIGHT & LOGISTICS Other securities a 39,908,027 0.66 39,908,027 0.66 AIRLINES Other securities a 40,076,411 0.67 40,076,411 0.67 AUTO COMPONENTS Other securities a 27,546,319 0.46 27,546,319 0.46 AUTOMOBILES Other securities a 37,946,876 0.63 37,946,876 0.63 BANKS Bank of America Corp. 2,869,974 38,802,048 0.65 Citigroup Inc. 829,170 34,617,847 0.58 JPMorgan Chase & Co. 1,014,106 60,055,357 1.00 PNC Financial Services Group Inc. (The) b 141,607 11,975,704 0.20 Wells Fargo & Co. 1,273,093 61,566,777 1.02 Other securities a 112,549,616 1.86 319,567,349 5.31 BEVERAGES Coca-Cola Co. (The) 1,071,554 49,709,390 0.83 PepsiCo Inc. 403,367 41,337,050 0.69 Other securities a 29,107,159 0.48 120,153,599 2.00 BIOTECHNOLOGY AbbVie Inc. 452,376 25,839,717 0.43 Amgen Inc. 207,785 31,153,205 0.52 Celgene Corp. c 216,770 21,696,509 0.36 Gilead Sciences Inc. 373,836 34,340,575 0.57 Other securities a 80,782,893 1.34 193,812,899 3.22 BUILDING PRODUCTS Other securities a $ 17,359,230 0.29% 17,359,230 0.29 CAPITAL MARKETS BlackRock Inc. b 34,389 11,711,862 0.19 Other securities a 99,461,753 1.66 111,173,615 1.85 CHEMICALS Other securities a 130,600,044 2.17 130,600,044 2.17 COMMERCIAL SERVICES & SUPPLIES Other securities a 41,167,068 0.68 41,167,068 0.68 COMMUNICATIONS EQUIPMENT Cisco Systems Inc. 1,389,849 39,569,001 0.66 Other securities a 26,637,565 0.44 66,206,566 1.10 CONSTRUCTION & ENGINEERING Other securities a 11,821,988 0.20 11,821,988 0.20 CONSTRUCTION MATERIALS Other securities a 8,589,449 0.14 8,589,449 0.14 CONSUMER FINANCE Other securities a 43,387,231 0.72 43,387,231 0.72 CONTAINERS & PACKAGING Other securities a 26,194,611 0.44 26,194,611 0.44 DISTRIBUTORS Other securities a 8,411,541 0.14 8,411,541 0.14 DIVERSIFIED CONSUMER SERVICES Other securities a 9,006,403 0.15 9,006,403 0.15 DIVERSIFIED FINANCIAL SERVICES Berkshire Hathaway Inc. Class B c 508,225 72,106,963 1.20 Other securities a 40,968,993 0.68 113,075,956 1.88 S UMMARY S CHEDULES OF I NVESTMENTS 33

Summary Schedule of Investments (Continued) ishares RUSSELL 3000 ETF March 31, 2016 DIVERSIFIED TELECOMMUNICATION SERVICES AT&T Inc. 1,663,447 $ 65,157,219 1.08% Verizon Communications Inc. 1,114,504 60,272,376 1.00 Other securities a 18,747,219 0.32 144,176,814 2.40 ELECTRIC UTILITIES Other securities a 117,127,806 1.95 117,127,806 1.95 ELECTRICAL EQUIPMENT Other securities a 34,312,982 0.57 34,312,982 0.57 ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS Other securities a 41,549,429 0.69 41,549,429 0.69 ENERGY EQUIPMENT & SERVICES Schlumberger Ltd. 347,008 25,591,840 0.43 Other securities a 35,723,892 0.59 61,315,732 1.02 FOOD & STAPLES RETAILING CVS Health Corp. 308,354 31,985,560 0.53 Wal-Mart Stores Inc. 431,679 29,565,695 0.49 Other securities a 66,875,616 1.12 128,426,871 2.14 FOOD PRODUCTS Other securities a 103,658,566 1.72 103,658,566 1.72 GAS UTILITIES Other securities a 15,406,224 0.26 15,406,224 0.26 HEALTH CARE EQUIPMENT & SUPPLIES Medtronic PLC 389,453 29,208,975 0.49 Other securities a 111,577,703 1.85 140,786,678 2.34 HEALTH CARE PROVIDERS & SERVICES UnitedHealth Group Inc. 260,138 33,531,788 0.56 Other securities a 119,458,812 1.98 152,990,600 2.54 HEALTH CARE TECHNOLOGY Other securities a 10,011,501 0.17 10,011,501 0.17 HOTELS, RESTAURANTS & LEISURE McDonald s Corp. 241,597 $ 30,363,911 0.50% Starbucks Corp. 410,081 24,481,836 0.41 Other securities a 76,437,588 1.27 131,283,335 2.18 HOUSEHOLD DURABLES Other securities a 37,180,883 0.62 37,180,883 0.62 HOUSEHOLD PRODUCTS Procter & Gamble Co. (The) 741,363 61,021,589 1.01 Other securities a 41,203,534 0.69 102,225,123 1.70 INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS Other securities a 7,080,263 0.12 7,080,263 0.12 INDUSTRIAL CONGLOMERATES 3M Co. 173,358 28,886,644 0.48 General Electric Co. 2,569,874 81,696,294 1.36 Other securities a 22,409,879 0.37 132,992,817 2.21 INSURANCE Other securities a 170,445,450 2.83 170,445,450 2.83 INTERNET & CATALOG RETAIL Amazon.com Inc. c 104,162 61,834,730 1.03 Other securities a 43,444,867 0.72 105,279,597 1.75 INTERNET SOFTWARE & SERVICES Alphabet Inc. Class A c 78,773 60,095,922 1.00 Alphabet Inc. Class C c 80,384 59,882,061 1.00 Facebook Inc. Class A c 591,345 67,472,464 1.12 Other securities a 43,312,809 0.72 230,763,256 3.84 IT SERVICES International Business Machines Corp. 248,148 37,582,015 0.63 MasterCard Inc. Class A 273,200 25,817,400 0.43 Visa Inc. Class A 534,916 40,910,376 0.68 Other securities a 121,869,576 2.02 226,179,367 3.76 34 2016 ishares A NNUAL R EPORT TO S HAREHOLDERS

Summary Schedule of Investments (Continued) ishares RUSSELL 3000 ETF March 31, 2016 LEISURE PRODUCTS Other securities a $ 10,899,237 0.18% 10,899,237 0.18 LIFE SCIENCES TOOLS & SERVICES Other securities a 42,027,657 0.70 42,027,657 0.70 MACHINERY Other securities a 98,632,642 1.64 98,632,642 1.64 MARINE Other securities a 1,420,058 0.02 1,420,058 0.02 MEDIA Comcast Corp. Class A 684,302 41,797,166 0.70 Walt Disney Co. (The) 463,676 46,047,664 0.77 Other securities a 105,698,051 1.75 193,542,881 3.22 METALS & MINING Other securities a 25,824,788 0.43 25,824,788 0.43 MULTI-UTILITIES Other securities a 64,048,215 1.07 64,048,215 1.07 MULTILINE RETAIL Other securities a 35,873,478 0.60 35,873,478 0.60 OIL, GAS & CONSUMABLE FUELS Chevron Corp. 513,877 49,023,866 0.82 Exxon Mobil Corp. 1,142,512 95,502,578 1.59 Other securities a 164,124,890 2.72 308,651,334 5.13 PAPER & FOREST PRODUCTS Other securities a 3,142,968 0.05 3,142,968 0.05 PERSONAL PRODUCTS Other securities a 10,539,480 0.18 10,539,480 0.18 PHARMACEUTICALS Allergan PLC c 107,251 28,746,486 0.48 Bristol-Myers Squibb Co. 455,564 29,101,428 0.48 Johnson & Johnson 757,757 $ 81,989,307 1.36% Merck & Co. Inc. 772,061 40,849,747 0.68 Pfizer Inc. 1,682,695 49,875,080 0.83 Other securities a 49,648,280 0.83 280,210,328 4.66 PROFESSIONAL SERVICES Other securities a 25,575,493 0.43 25,575,493 0.43 REAL ESTATE INVESTMENT TRUSTS (REITS) PennyMac Mortgage Investment Trust b,d 14,647 199,785 0.00 Other securities a 256,566,335 4.27 256,766,120 4.27 REAL ESTATE MANAGEMENT & DEVELOPMENT Other securities a 8,261,582 0.14 8,261,582 0.14 ROAD & RAIL Other securities a 46,743,250 0.78 46,743,250 0.78 SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT Intel Corp. 1,296,408 41,938,799 0.70 Other securities a 120,489,299 2.00 162,428,098 2.70 SOFTWARE Microsoft Corp. 2,210,499 122,085,860 2.03 Oracle Corp. 865,867 35,422,619 0.59 Other securities a 105,549,257 1.75 263,057,736 4.37 SPECIALTY RETAIL Home Depot Inc. (The) 354,972 47,363,914 0.79 Other securities a 115,776,904 1.92 163,140,818 2.71 TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS Apple Inc. 1,574,200 171,572,058 2.85 Other securities a 42,489,022 0.71 214,061,080 3.56 TEXTILES, APPAREL & LUXURY GOODS NIKE Inc. Class B 370,624 22,782,257 0.38 Other securities a 33,154,575 0.55 55,936,832 0.93 S UMMARY S CHEDULES OF I NVESTMENTS 35

Summary Schedule of Investments (Continued) ishares RUSSELL 3000 ETF March 31, 2016 THRIFTS & MORTGAGE FINANCE PennyMac Financial Services Inc. Class A b,c 3,152 $ 37,068 0.00% Other securities a 11,425,865 0.19 11,462,933 0.19 TOBACCO Altria Group Inc. 537,424 33,674,988 0.56 Philip Morris International Inc. 423,341 41,533,986 0.69 Other securities a 12,279,674 0.21 87,488,648 1.46 TRADING COMPANIES & DISTRIBUTORS Other securities a 19,051,146 0.32 19,051,146 0.32 TRANSPORTATION INFRASTRUCTURE Other securities a 1,511,371 0.03 1,511,371 0.03 WATER UTILITIES Other securities a 6,333,513 0.11 6,333,513 0.11 WIRELESS TELECOMMUNICATION SERVICES Other securities a 5,091,841 0.08 5,091,841 0.08 TOTAL COMMON STOCKS (Cost: $4,942,675,192) 6,003,688,728 99.85 RIGHTS TEXTILES, APPAREL & LUXURY GOODS Other securities a 812 812 TOTAL RIGHTS (Cost: $0) 812 WARRANTS OIL, GAS & CONSUMABLE FUELS Other securities a $ % TOTAL WARRANTS (Cost: $0) SHORT-TERM INVESTMENTS MONEY MARKET FUNDS BlackRock Cash Funds: Institutional, SL Agency Shares 0.50% b,e,f 194,807,746 194,807,746 3.24 BlackRock Cash Funds: Prime, SL Agency Shares 0.51% b,e,f 9,894,938 9,894,938 0.16 BlackRock Cash Funds: Treasury, SL Agency Shares 0.28% b,e 7,784,032 7,784,032 0.13 212,486,716 3.53 TOTAL SHORT-TERM INVESTMENTS (Cost: $212,486,716) 212,486,716 3.53 TOTAL INVESTMENTS IN SECURITIES (Cost: $5,155,161,908) 6,216,176,256 103.38 Other, Less Liabilities (203,335,553) (3.38) NET ASSETS $6,012,840,703 100.00% a Other securities are those securities, which individually, are not one of the 50 largest unaffiliated issuers and which represent less than one percent of the net assets of the Fund as of March 31, 2016. Other securities may include securities on loan and non-income earning securities. b Affiliated issuer. See Note 2. c Non-income earning security. d All or a portion of this security represents a security on loan. See Note 1. e The rate quoted is the annualized seven-day yield of the fund at period end. f All or a portion of this security represents an investment of securities lending collateral. See Note 1. Open futures contracts as of March 31, 2016 were as follows: Issue Number of Contracts Purchased (Sold) Expiration Exchange Notional Value Unrealized Appreciation (Depreciation) Russell 2000 Mini 11 Jun. 2016 ICE Markets Equity $1,220,560 $ 47,169 S&P 500 E-Mini 71 Jun. 2016 Chicago Mercantile 7,282,825 254,878 Net unrealized appreciation $302,047 See notes to financial statements. 36 2016 ishares A NNUAL R EPORT TO S HAREHOLDERS

Summary Schedule of Investments ishares RUSSELL MID-CAP ETF March 31, 2016 COMMON STOCKS AEROSPACE & DEFENSE Other securities a $ 153,545,084 1.26% 153,545,084 1.26 AIR FREIGHT & LOGISTICS Other securities a 41,038,370 0.34 41,038,370 0.34 AIRLINES Southwest Airlines Co. 1,358,633 60,866,758 0.50 United Continental Holdings Inc. b 730,987 43,756,882 0.36 Other securities a 46,802,737 0.38 151,426,377 1.24 AUTO COMPONENTS Delphi Automotive PLC 587,125 44,046,117 0.36 Other securities a 69,394,960 0.57 113,441,077 0.93 AUTOMOBILES Other securities a 25,968,877 0.21 25,968,877 0.21 BANKS Other securities a 344,746,355 2.83 344,746,355 2.83 BEVERAGES Constellation Brands Inc. Class A 332,610 50,254,045 0.41 Monster Beverage Corp. b,c 304,235 40,578,864 0.33 Other securities a 119,210,538 0.99 210,043,447 1.73 BIOTECHNOLOGY Other securities a 132,198,031 1.09 132,198,031 1.09 BUILDING PRODUCTS Other securities a 95,497,022 0.78 95,497,022 0.78 CAPITAL MARKETS T Rowe Price Group Inc. 529,929 38,928,584 0.32 Other securities a 214,029,959 1.76 252,958,543 2.08 CHEMICALS Sherwin-Williams Co. (The) 164,651 $ 46,871,200 0.39% Other securities a 236,068,194 1.93 282,939,394 2.32 COMMERCIAL SERVICES & SUPPLIES Other securities a 174,728,069 1.44 174,728,069 1.44 COMMUNICATIONS EQUIPMENT Other securities a 146,028,176 1.20 146,028,176 1.20 CONSTRUCTION & ENGINEERING Other securities a 60,690,767 0.50 60,690,767 0.50 CONSTRUCTION MATERIALS Other securities a 57,585,378 0.47 57,585,378 0.47 CONSUMER FINANCE Synchrony Financial b 1,695,181 48,583,888 0.40 Other securities a 41,346,745 0.34 89,930,633 0.74 CONTAINERS & PACKAGING Other securities a 183,227,854 1.51 183,227,854 1.51 DISTRIBUTORS Other securities a 50,536,325 0.42 50,536,325 0.42 DIVERSIFIED CONSUMER SERVICES Other securities a 34,184,551 0.28 34,184,551 0.28 DIVERSIFIED FINANCIAL SERVICES Intercontinental Exchange Inc. 237,830 55,923,346 0.46 McGraw Hill Financial Inc. 556,460 55,078,411 0.45 Other securities a 117,316,358 0.97 228,318,115 1.88 DIVERSIFIED TELECOMMUNICATION SERVICES Other securities a 114,507,987 0.94 114,507,987 0.94 ELECTRIC UTILITIES Edison International 662,473 47,625,184 0.39 S UMMARY S CHEDULES OF I NVESTMENTS 37

Summary Schedule of Investments (Continued) ishares RUSSELL MID-CAP ETF March 31, 2016 PPL Corp. 1,358,393 $ 51,714,021 0.42% Xcel Energy Inc. 1,030,790 43,107,638 0.35 Other securities a 176,019,761 1.46 318,466,604 2.62 ELECTRICAL EQUIPMENT Other securities a 98,541,517 0.81 98,541,517 0.81 ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS Other securities a 162,977,864 1.34 162,977,864 1.34 ENERGY EQUIPMENT & SERVICES Other securities a 135,918,623 1.12 135,918,623 1.12 FOOD & STAPLES RETAILING Sysco Corp. 1,207,162 56,410,680 0.46 Other securities a 46,254,224 0.38 102,664,904 0.84 FOOD PRODUCTS ConAgra Foods Inc. 868,461 38,750,730 0.32 Kellogg Co. 507,862 38,876,836 0.32 Tyson Foods Inc. Class A 599,392 39,955,471 0.33 Other securities a 240,803,807 1.97 358,386,844 2.94 GAS UTILITIES Other securities a 62,815,552 0.52 62,815,552 0.52 HEALTH CARE EQUIPMENT & SUPPLIES Boston Scientific Corp. b 2,725,854 51,273,314 0.42 Edwards Lifesciences Corp. b 437,465 38,588,788 0.32 Intuitive Surgical Inc. b 74,947 45,046,894 0.37 Other securities a 260,200,545 2.14 395,109,541 3.25 HEALTH CARE PROVIDERS & SERVICES Other securities a 250,692,502 2.06 250,692,502 2.06 HEALTH CARE TECHNOLOGY Other securities a 59,878,977 0.49 59,878,977 0.49 HOTELS, RESTAURANTS & LEISURE Other securities a $ 300,030,854 2.46% 300,030,854 2.46 HOUSEHOLD DURABLES Other securities a 231,555,443 1.90 231,555,443 1.90 HOUSEHOLD PRODUCTS Other securities a 68,963,879 0.57 68,963,879 0.57 INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS Other securities a 37,296,979 0.31 37,296,979 0.31 INDUSTRIAL CONGLOMERATES Other securities a 50,527,820 0.42 50,527,820 0.42 INSURANCE Aon PLC 572,987 59,848,492 0.49 Progressive Corp. (The) 1,193,102 41,925,604 0.34 Other securities a 450,750,047 3.71 552,524,143 4.54 INTERNET & CATALOG RETAIL Other securities a 81,368,160 0.67 81,368,160 0.67 INTERNET SOFTWARE & SERVICES Other securities a 120,642,444 0.99 120,642,444 0.99 IT SERVICES Fiserv Inc. b,c 452,974 46,466,073 0.38 Other securities a 364,046,770 2.99 410,512,843 3.37 LEISURE PRODUCTS Other securities a 70,483,434 0.58 70,483,434 0.58 LIFE SCIENCES TOOLS & SERVICES Other securities a 129,515,221 1.06 129,515,221 1.06 MACHINERY PACCAR Inc. 721,516 39,459,710 0.32 Other securities a 353,520,491 2.91 392,980,201 3.23 38 2016 ishares A NNUAL R EPORT TO S HAREHOLDERS

Summary Schedule of Investments (Continued) ishares RUSSELL MID-CAP ETF March 31, 2016 MARINE Other securities a $ 6,867,935 0.06% 6,867,935 0.06 MEDIA Omnicom Group Inc. 496,813 41,349,746 0.34 Other securities a 237,678,501 1.95 279,028,247 2.29 METALS & MINING Other securities a 154,238,257 1.27 154,238,257 1.27 MULTI-UTILITIES Consolidated Edison Inc. 595,526 45,629,202 0.37 Public Service Enterprise Group Inc. 1,028,567 48,486,649 0.40 Sempra Energy 503,373 52,375,961 0.43 WEC Energy Group Inc. 642,014 38,565,781 0.32 Other securities a 182,161,184 1.50 367,218,777 3.02 MULTILINE RETAIL Dollar General Corp. 582,059 49,824,250 0.41 Dollar Tree Inc. b 468,223 38,609,669 0.32 Other securities a 69,643,179 0.57 158,077,098 1.30 OIL, GAS & CONSUMABLE FUELS Pioneer Natural Resources Co. 328,402 46,219,298 0.38 Other securities a 385,395,774 3.17 431,615,072 3.55 PAPER & FOREST PRODUCTS Other securities a 5,277,474 0.04 5,277,474 0.04 PERSONAL PRODUCTS Other securities a 30,823,708 0.25 30,823,708 0.25 PHARMACEUTICALS Zoetis Inc. 1,016,622 45,066,853 0.37 Other securities a 85,532,068 0.70 130,598,921 1.07 PROFESSIONAL SERVICES Nielsen Holdings PLC 748,477 $ 39,414,799 0.32% Other securities a 107,018,532 0.88 146,433,331 1.20 REAL ESTATE INVESTMENT TRUSTS (REITS) AvalonBay Communities Inc. 268,766 51,119,293 0.42 Boston Properties Inc. 311,968 39,644,893 0.33 Crown Castle International Corp. 678,151 58,660,061 0.48 Equinix Inc. 139,076 45,993,824 0.38 Prologis Inc. 1,065,562 47,076,529 0.39 Ventas Inc. 672,842 42,362,132 0.35 Welltower Inc. 712,914 49,433,457 0.41 Weyerhaeuser Co. 1,624,024 50,312,264 0.41 Other securities a 836,500,644 6.86 1,221,103,097 10.03 REAL ESTATE MANAGEMENT & DEVELOPMENT Other securities a 46,855,257 0.38 46,855,257 0.38 ROAD & RAIL Other securities a 84,075,918 0.69 84,075,918 0.69 SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT Applied Materials Inc. 2,336,477 49,486,583 0.41 NVIDIA Corp. 1,094,084 38,982,213 0.32 Other securities a 280,917,575 2.30 369,386,371 3.03 SOFTWARE Electronic Arts Inc. b,c 639,747 42,293,674 0.35 Intuit Inc. 521,821 54,274,602 0.45 Other securities a 334,203,159 2.74 430,771,435 3.54 SPECIALTY RETAIL AutoZone Inc. b,c 63,516 50,602,562 0.42 L Brands Inc. 503,169 44,183,270 0.36 O Reilly Automotive Inc. b 205,319 56,187,598 0.46 Ross Stores Inc. 841,341 48,713,644 0.40 S UMMARY S CHEDULES OF I NVESTMENTS 39

Summary Schedule of Investments (Continued) ishares RUSSELL MID-CAP ETF March 31, 2016 Other securities a $ 304,911,006 2.51% 504,598,080 4.15 TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS Other securities a 86,010,545 0.71 86,010,545 0.71 TEXTILES, APPAREL & LUXURY GOODS Other securities a 170,982,390 1.40 170,982,390 1.40 THRIFTS & MORTGAGE FINANCE Other securities a 18,034,272 0.15 18,034,272 0.15 TRADING COMPANIES & DISTRIBUTORS Other securities a 116,500,562 0.96 116,500,562 0.96 TRANSPORTATION INFRASTRUCTURE Other securities a 9,470,329 0.08 9,470,329 0.08 WATER UTILITIES Other securities a 36,724,186 0.30 36,724,186 0.30 WIRELESS TELECOMMUNICATION SERVICES Other securities a 12,300,080 0.10 12,300,080 0.10 TOTAL COMMON STOCKS (Cost: $10,533,468,441) 12,152,386,123 99.85 SHORT-TERM INVESTMENTS MONEY MARKET FUNDS BlackRock Cash Funds: Institutional, SL Agency Shares 0.50% d,e,f 815,817,032 $ 815,817,032 6.70% BlackRock Cash Funds: Prime, SL Agency Shares 0.51% d,e,f 41,438,082 41,438,082 0.34 BlackRock Cash Funds: Treasury, SL Agency Shares 0.28% d,e 13,142,971 13,142,971 0.11 870,398,085 7.15 TOTAL SHORT-TERM INVESTMENTS (Cost: $870,398,085) 870,398,085 7.15 TOTAL INVESTMENTS IN SECURITIES (Cost: $11,403,866,526) 13,022,784,208 107.00 Other, Less Liabilities (851,571,975) (7.00) NET ASSETS $12,171,212,233 100.00% a Other securities are those securities, which individually, are not one of the 50 largest unaffiliated issuers and which represent less than one percent of the net assets of the Fund as of March 31, 2016. Other securities may include securities on loan and non-income earning securities. b Non-income earning security. c All or a portion of this security represents a security on loan. See Note 1. d Affiliated issuer. See Note 2. e The rate quoted is the annualized seven-day yield of the fund at period end. f All or a portion of this security represents an investment of securities lending collateral. See Note 1. Open futures contracts as of March 31, 2016 were as follows: Issue Number of Contracts Purchased (Sold) Expiration Exchange Notional Value Unrealized Appreciation (Depreciation) S&P 500 E-Mini 48 Jun. 2016 Chicago Mercantile $ 4,923,600 $172,312 S&P MidCap 400 E-Mini 87 Jun. 2016 Chicago Mercantile 12,538,440 584,408 Net unrealized appreciation $756,720 See notes to financial statements. 40 2016 ishares A NNUAL R EPORT TO S HAREHOLDERS

Summary Schedule of Investments ishares RUSSELL MID-CAP GROWTH ETF March 31, 2016 COMMON STOCKS AEROSPACE & DEFENSE Other securities a $ 99,022,530 1.63% 99,022,530 1.63 AIR FREIGHT & LOGISTICS Other securities a 41,363,609 0.68 41,363,609 0.68 AIRLINES Southwest Airlines Co. 1,370,663 61,405,702 1.01 United Continental Holdings Inc. b 737,286 44,133,940 0.73 Other securities a 34,084,889 0.56 139,624,531 2.30 AUTO COMPONENTS Delphi Automotive PLC 592,188 44,425,944 0.73 Other securities a 42,538,973 0.71 86,964,917 1.44 AUTOMOBILES Other securities a 17,007,776 0.28 17,007,776 0.28 BANKS Other securities a 19,689,509 0.33 19,689,509 0.33 BEVERAGES Constellation Brands Inc. Class A 335,513 50,692,659 0.84 Dr Pepper Snapple Group Inc. 393,226 35,162,269 0.58 Monster Beverage Corp. b 306,840 40,926,319 0.68 Other securities a 51,742,650 0.85 178,523,897 2.95 BIOTECHNOLOGY Other securities a 131,508,896 2.17 131,508,896 2.17 BUILDING PRODUCTS Other securities a 71,324,495 1.18 71,324,495 1.18 CAPITAL MARKETS T Rowe Price Group Inc. 534,444 $ 39,260,256 0.65% Other securities a 116,471,658 1.92 155,731,914 2.57 CHEMICALS Sherwin-Williams Co. (The) 166,079 47,277,709 0.78 Other securities a 122,072,128 2.02 169,349,837 2.80 COMMERCIAL SERVICES & SUPPLIES Other securities a 99,550,953 1.64 99,550,953 1.64 COMMUNICATIONS EQUIPMENT Other securities a 85,903,233 1.42 85,903,233 1.42 CONSTRUCTION & ENGINEERING Other securities a 2,948,360 0.05 2,948,360 0.05 CONSTRUCTION MATERIALS Other securities a 14,069,272 0.23 14,069,272 0.23 CONSUMER FINANCE Other securities a 10,876,015 0.18 10,876,015 0.18 CONTAINERS & PACKAGING International Paper Co. 820,097 33,656,781 0.56 Other securities a 85,257,265 1.40 118,914,046 1.96 DISTRIBUTORS Genuine Parts Co. 289,988 28,813,208 0.48 Other securities a 19,926,810 0.32 48,740,018 0.80 DIVERSIFIED CONSUMER SERVICES Other securities a 30,155,429 0.50 30,155,429 0.50 DIVERSIFIED FINANCIAL SERVICES McGraw Hill Financial Inc. 561,351 55,562,522 0.92 Moody s Corp. 364,064 35,154,020 0.58 Other securities a 64,773,104 1.07 155,489,646 2.57 S UMMARY S CHEDULES OF I NVESTMENTS 41

Summary Schedule of Investments (Continued) ishares RUSSELL MID-CAP GROWTH ETF March 31, 2016 DIVERSIFIED TELECOMMUNICATION SERVICES Other securities a $ 23,015,262 0.38% 23,015,262 0.38 ELECTRIC UTILITIES Other securities a 5,097,385 0.08 5,097,385 0.08 ELECTRICAL EQUIPMENT Rockwell Automation Inc. 276,002 31,395,228 0.52 Other securities a 49,609,243 0.82 81,004,471 1.34 ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS Amphenol Corp. Class A 633,578 36,633,480 0.60 Other securities a 58,155,699 0.96 94,789,179 1.56 ENERGY EQUIPMENT & SERVICES Other securities a 9,830,936 0.16 9,830,936 0.16 FOOD & STAPLES RETAILING Other securities a 55,887,422 0.92 55,887,422 0.92 FOOD PRODUCTS Kellogg Co. 460,966 35,286,947 0.58 Mead Johnson Nutrition Co. 382,402 32,492,698 0.54 Other securities a 130,791,034 2.16 198,570,679 3.28 HEALTH CARE EQUIPMENT & SUPPLIES CR Bard Inc. 152,272 30,860,966 0.51 Edwards Lifesciences Corp. b 441,190 38,917,370 0.64 Intuitive Surgical Inc. b,c 75,594 45,435,774 0.75 Other securities a 151,621,432 2.50 266,835,542 4.40 HEALTH CARE PROVIDERS & SERVICES AmerisourceBergen Corp. 421,739 36,501,510 0.60 Henry Schein Inc. b 171,495 29,605,182 0.49 Other securities a 81,536,484 1.35 147,643,176 2.44 HEALTH CARE TECHNOLOGY Cerner Corp. b,c 614,577 $ 32,547,998 0.54% Other securities a 24,394,479 0.40 56,942,477 0.94 HOTELS, RESTAURANTS & LEISURE Chipotle Mexican Grill Inc. b,c 63,675 29,989,015 0.49 Marriott International Inc./MD Class A 401,866 28,604,822 0.47 Starwood Hotels & Resorts Worldwide Inc. 350,471 29,239,795 0.48 Other securities a 140,493,936 2.33 228,327,568 3.77 HOUSEHOLD DURABLES Other securities a 135,090,298 2.23 135,090,298 2.23 HOUSEHOLD PRODUCTS Other securities a 57,287,400 0.95 57,287,400 0.95 INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS Other securities a 1,404,628 0.02 1,404,628 0.02 INDUSTRIAL CONGLOMERATES Other securities a 17,308,172 0.29 17,308,172 0.29 INSURANCE Aon PLC 578,052 60,377,531 1.00 Other securities a 16,011,761 0.26 76,389,292 1.26 INTERNET & CATALOG RETAIL Other securities a 65,040,112 1.07 65,040,112 1.07 INTERNET SOFTWARE & SERVICES Other securities a 120,417,709 1.99 120,417,709 1.99 IT SERVICES Fiserv Inc. b 457,255 46,905,218 0.77 Paychex Inc. 580,247 31,339,140 0.52 Other securities a 234,743,175 3.88 312,987,533 5.17 42 2016 ishares A NNUAL R EPORT TO S HAREHOLDERS

Summary Schedule of Investments (Continued) ishares RUSSELL MID-CAP GROWTH ETF March 31, 2016 LEISURE PRODUCTS Other securities a $ 35,915,680 0.59% 35,915,680 0.59 LIFE SCIENCES TOOLS & SERVICES Other securities a 71,524,823 1.18 71,524,823 1.18 MACHINERY PACCAR Inc. 657,809 35,975,574 0.59 Other securities a 145,895,626 2.41 181,871,200 3.00 MEDIA Charter Communications Inc. Class A b,c 153,728 31,119,159 0.51 Omnicom Group Inc. 501,071 41,704,139 0.69 Other securities a 117,080,554 1.93 189,903,852 3.13 METALS & MINING Other securities a 6,865,611 0.11 6,865,611 0.11 MULTILINE RETAIL Dollar General Corp. 587,560 50,295,136 0.83 Dollar Tree Inc. b 472,210 38,938,437 0.64 Other securities a 35,943,750 0.60 125,177,323 2.07 OIL, GAS & CONSUMABLE FUELS Other securities a 41,709,796 0.69 41,709,796 0.69 PERSONAL PRODUCTS Other securities a 13,320,799 0.22 13,320,799 0.22 PHARMACEUTICALS Zoetis Inc. 1,025,403 45,456,115 0.75 Other securities a 37,763,628 0.62 83,219,743 1.37 PROFESSIONAL SERVICES Other securities a 114,591,396 1.89 114,591,396 1.89 REAL ESTATE INVESTMENT TRUSTS (REITS) Boston Properties Inc. 287,256 36,504,493 0.60 Crown Castle International Corp. 684,536 59,212,364 0.98 Equinix Inc. c 140,280 $ 46,391,999 0.77% Other securities a 142,799,010 2.35 284,907,866 4.70 REAL ESTATE MANAGEMENT & DEVELOPMENT Other securities a 32,192,411 0.53 32,192,411 0.53 ROAD & RAIL Other securities a 50,882,521 0.84 50,882,521 0.84 SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT Analog Devices Inc. 588,392 34,826,922 0.57 Applied Materials Inc. 1,395,201 29,550,357 0.49 Skyworks Solutions Inc. 391,924 30,530,880 0.50 Other securities a 128,689,322 2.13 223,597,481 3.69 SOFTWARE Electronic Arts Inc. b,c 645,245 42,657,147 0.70 Intuit Inc. 526,752 54,787,475 0.90 Red Hat Inc. b,c 375,995 28,015,387 0.46 Other securities a 182,334,872 3.02 307,794,881 5.08 SPECIALTY RETAIL AutoZone Inc. b,c 64,071 51,044,725 0.84 L Brands Inc. 507,512 44,564,629 0.74 O Reilly Automotive Inc. b,c 207,128 56,682,649 0.94 Ross Stores Inc. 848,667 49,137,819 0.81 Other securities a 231,874,923 3.82 433,304,745 7.15 TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS Other securities a 6,224,820 0.10 6,224,820 0.10 TEXTILES, APPAREL & LUXURY GOODS Under Armour Inc. Class A b,c 366,365 31,078,743 0.51 Other securities a 92,989,409 1.54 124,068,152 2.05 TRADING COMPANIES & DISTRIBUTORS Fastenal Co. c 602,873 29,540,777 0.49 WW Grainger Inc. c 128,775 30,059,948 0.50 S UMMARY S CHEDULES OF I NVESTMENTS 43

Summary Schedule of Investments (Continued) ishares RUSSELL MID-CAP GROWTH ETF March 31, 2016 Other securities a $ 33,027,384 0.54% 92,628,109 1.53 TOTAL COMMON STOCKS (Cost: $5,448,317,711) 6,050,329,333 99.85 SHORT-TERM INVESTMENTS MONEY MARKET FUNDS BlackRock Cash Funds: Institutional, SL Agency Shares 0.50% d,e,f 577,380,986 577,380,986 9.53 BlackRock Cash Funds: Prime, SL Agency Shares 0.51% d,e,f 29,327,116 29,327,116 0.48 BlackRock Cash Funds: Treasury, SL Agency Shares 0.28% d,e 6,603,996 6,603,996 0.11 613,312,098 10.12 TOTAL SHORT-TERM INVESTMENTS (Cost: $613,312,098) 613,312,098 10.12 TOTAL INVESTMENTS IN SECURITIES (Cost: $6,061,629,809) 6,663,641,431 109.97 Other, Less Liabilities (603,902,686) (9.97) NET ASSETS $6,059,738,745 100.00% a Other securities are those securities, which individually, are not one of the 50 largest unaffiliated issuers and which represent less than one percent of the net assets of the Fund as of March 31, 2016. Other securities may include securities on loan and non-income earning securities. b Non-income earning security. c All or a portion of this security represents a security on loan. See Note 1. d Affiliated issuer. See Note 2. e The rate quoted is the annualized seven-day yield of the fund at period end. f All or a portion of this security represents an investment of securities lending collateral. See Note 1. Open futures contracts as of March 31, 2016 were as follows: Issue Number of Contracts Purchased (Sold) Expiration Exchange Notional Value Unrealized Appreciation (Depreciation) S&P 500 E-Mini 13 Jun. 2016 Chicago Mercantile $1,333,475 $ 46,668 S&P MidCap 400 E-Mini 42 Jun. 2016 Chicago Mercantile 6,053,040 282,128 Net unrealized appreciation $328,796 See notes to financial statements. 44 2016 ishares A NNUAL R EPORT TO S HAREHOLDERS

Summary Schedule of Investments ishares RUSSELL MID-CAP VALUE ETF March 31, 2016 COMMON STOCKS AEROSPACE & DEFENSE Other securities a $ 61,373,363 0.90% 61,373,363 0.90 AIRLINES Other securities a 14,392,039 0.21 14,392,039 0.21 AUTO COMPONENTS Other securities a 30,021,301 0.44 30,021,301 0.44 AUTOMOBILES Other securities a 10,052,262 0.15 10,052,262 0.15 BANKS Fifth Third Bancorp. 1,826,705 30,487,706 0.45 M&T Bank Corp. 360,102 39,971,322 0.58 SunTrust Banks Inc. 1,164,239 42,005,743 0.61 Other securities a 247,712,431 3.62 360,177,202 5.26 BEVERAGES Molson Coors Brewing Co. Class B 356,299 34,268,838 0.50 Other securities a 2,279,673 0.03 36,548,511 0.53 BIOTECHNOLOGY Other securities a 3,869,117 0.06 3,869,117 0.06 BUILDING PRODUCTS Other securities a 27,286,960 0.40 27,286,960 0.40 CAPITAL MARKETS Northern Trust Corp. 526,330 34,300,926 0.50 Other securities a 74,733,964 1.09 109,034,890 1.59 CHEMICALS Other securities a 127,313,418 1.86 127,313,418 1.86 COMMERCIAL SERVICES & SUPPLIES Other securities a 84,041,249 1.23 84,041,249 1.23 COMMUNICATIONS EQUIPMENT Other securities a $ 67,135,645 0.98% 67,135,645 0.98 CONSTRUCTION & ENGINEERING Other securities a 63,875,903 0.93 63,875,903 0.93 CONSTRUCTION MATERIALS Other securities a 48,330,977 0.71 48,330,977 0.71 CONSUMER FINANCE Synchrony Financial b 1,880,270 53,888,538 0.79 Other securities a 33,740,930 0.49 87,629,468 1.28 CONTAINERS & PACKAGING Other securities a 72,225,010 1.05 72,225,010 1.05 DISTRIBUTORS Other securities a 2,432,035 0.04 2,432,035 0.04 DIVERSIFIED CONSUMER SERVICES Other securities a 4,670,159 0.07 4,670,159 0.07 DIVERSIFIED FINANCIAL SERVICES Intercontinental Exchange Inc. 169,906 39,951,697 0.58 Other securities a 42,174,294 0.62 82,125,991 1.20 DIVERSIFIED TELECOMMUNICATION SERVICES CenturyLink Inc. 1,271,438 40,635,159 0.59 Level 3 Communications Inc. b 574,698 30,372,789 0.44 Other securities a 30,640,850 0.45 101,648,798 1.48 ELECTRIC UTILITIES Edison International 734,799 52,824,700 0.77 Entergy Corp. 404,888 32,099,521 0.47 Eversource Energy 716,399 41,794,718 0.61 FirstEnergy Corp. 951,819 34,236,929 0.50 PPL Corp. 1,506,769 57,362,696 0.84 Xcel Energy Inc. 1,143,245 47,810,506 0.70 Other securities a 81,357,847 1.18 347,486,917 5.07 S UMMARY S CHEDULES OF I NVESTMENTS 45

Summary Schedule of Investments (Continued) ishares RUSSELL MID-CAP VALUE ETF March 31, 2016 ELECTRICAL EQUIPMENT Other securities a $ 20,103,253 0.29% 20,103,253 0.29 ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS Other securities a 76,290,134 1.11 76,290,134 1.11 ENERGY EQUIPMENT & SERVICES Other securities a 141,741,933 2.07 141,741,933 2.07 FOOD & STAPLES RETAILING Sysco Corp. 921,318 43,053,190 0.63 Other securities a 9,323,620 0.13 52,376,810 0.76 FOOD PRODUCTS ConAgra Foods Inc. 832,160 37,130,979 0.54 JM Smucker Co. (The) 269,882 35,041,479 0.51 Tyson Foods Inc. Class A 630,856 42,052,861 0.61 Other securities a 64,659,499 0.95 178,884,818 2.61 GAS UTILITIES Other securities a 69,576,944 1.02 69,576,944 1.02 HEALTH CARE EQUIPMENT & SUPPLIES Boston Scientific Corp. b,c 2,787,774 52,438,029 0.77 Zimmer Biomet Holdings Inc. 360,489 38,438,942 0.56 Other securities a 53,749,137 0.78 144,626,108 2.11 HEALTH CARE PROVIDERS & SERVICES Other securities a 115,256,808 1.68 115,256,808 1.68 HEALTH CARE TECHNOLOGY Other securities a 3,722,869 0.05 3,722,869 0.05 HOTELS, RESTAURANTS & LEISURE Royal Caribbean Cruises Ltd. 387,888 31,864,999 0.47 Other securities a 49,499,796 0.72 81,364,795 1.19 HOUSEHOLD DURABLES Other securities a $ 109,990,411 1.61% 109,990,411 1.61 HOUSEHOLD PRODUCTS Other securities a 13,403,710 0.20 13,403,710 0.20 INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS Other securities a 39,704,312 0.58 39,704,312 0.58 INDUSTRIAL CONGLOMERATES Other securities a 37,002,499 0.54 37,002,499 0.54 INSURANCE Hartford Financial Services Group Inc. (The) 894,630 41,224,550 0.60 Progressive Corp. (The) 1,323,240 46,498,654 0.68 Other securities a 440,995,523 6.44 528,718,727 7.72 INTERNET & CATALOG RETAIL Other securities a 18,700,143 0.27 18,700,143 0.27 INTERNET SOFTWARE & SERVICES Other securities a 3,108,338 0.05 3,108,338 0.05 IT SERVICES Other securities a 110,784,757 1.62 110,784,757 1.62 LEISURE PRODUCTS Other securities a 38,574,900 0.56 38,574,900 0.56 LIFE SCIENCES TOOLS & SERVICES Other securities a 64,809,626 0.95 64,809,626 0.95 MACHINERY Ingersoll-Rand PLC 555,244 34,430,680 0.50 Stanley Black & Decker Inc. 314,813 33,121,476 0.48 Other securities a 169,691,536 2.48 237,243,692 3.46 46 2016 ishares A NNUAL R EPORT TO S HAREHOLDERS

Summary Schedule of Investments (Continued) ishares RUSSELL MID-CAP VALUE ETF March 31, 2016 MARINE Other securities a $ 7,583,095 0.11% 7,583,095 0.11 MEDIA Other securities a 99,944,657 1.46 99,944,657 1.46 METALS & MINING Newmont Mining Corp. 1,193,214 31,715,628 0.46 Nucor Corp. 719,762 34,044,743 0.50 Other securities a 99,530,504 1.45 165,290,875 2.41 MULTI-UTILITIES Consolidated Edison Inc. 660,524 50,609,349 0.74 DTE Energy Co. 404,451 36,667,528 0.54 Public Service Enterprise Group Inc. 1,140,868 53,780,518 0.79 Sempra Energy 558,362 58,097,566 0.85 WEC Energy Group Inc. 711,993 42,769,419 0.62 Other securities a 165,195,655 2.40 407,120,035 5.94 MULTILINE RETAIL Other securities a 40,264,227 0.59 40,264,227 0.59 OIL, GAS & CONSUMABLE FUELS Hess Corp. 622,701 32,785,208 0.48 Noble Energy Inc. 967,843 30,399,949 0.44 Pioneer Natural Resources Co. 364,248 51,264,264 0.75 Other securities a 320,068,452 4.67 434,517,873 6.34 PAPER & FOREST PRODUCTS Other securities a 5,816,489 0.09 5,816,489 0.09 PERSONAL PRODUCTS Other securities a 21,507,795 0.31 21,507,795 0.31 PHARMACEUTICALS Perrigo Co. PLC 268,863 34,395,644 0.50 Other securities a 18,964,205 0.28 53,359,849 0.78 PROFESSIONAL SERVICES Other securities a $ 36,264,572 0.53% 36,264,572 0.53 REAL ESTATE INVESTMENT TRUSTS (REITS) AvalonBay Communities Inc. 298,122 56,702,804 0.83 Essex Property Trust Inc. c 147,392 34,469,093 0.50 General Growth Properties Inc. 1,301,398 38,690,563 0.56 HCP Inc. c 1,041,245 33,923,762 0.50 Prologis Inc. c 1,181,880 52,215,458 0.76 Realty Income Corp. c 562,904 35,187,129 0.51 Ventas Inc. 746,240 46,983,270 0.69 Vornado Realty Trust 424,618 40,096,678 0.59 Welltower Inc. c 434,150 30,103,961 0.44 Weyerhaeuser Co. 1,441,137 44,646,424 0.65 Other securities a 629,439,605 9.19 1,042,458,747 15.22 REAL ESTATE MANAGEMENT & DEVELOPMENT Other securities a 16,769,780 0.24 16,769,780 0.24 ROAD & RAIL Other securities a 37,065,341 0.54 37,065,341 0.54 SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT NVIDIA Corp. 1,213,360 43,232,017 0.63 Other securities a 119,965,389 1.75 163,197,406 2.38 SOFTWARE Activision Blizzard Inc. 1,138,005 38,510,089 0.56 Other securities a 102,974,566 1.51 141,484,655 2.07 SPECIALTY RETAIL Other securities a 82,621,046 1.21 82,621,046 1.21 TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS SanDisk Corp. 468,860 35,670,869 0.52 Other securities a 52,712,604 0.77 88,383,473 1.29 S UMMARY S CHEDULES OF I NVESTMENTS 47

Summary Schedule of Investments (Continued) ishares RUSSELL MID-CAP VALUE ETF March 31, 2016 TEXTILES, APPAREL & LUXURY GOODS Other securities a $ 53,025,572 0.77% 53,025,572 0.77 THRIFTS & MORTGAGE FINANCE Other securities a 19,982,567 0.29 19,982,567 0.29 TRADING COMPANIES & DISTRIBUTORS Other securities a 26,860,517 0.39 26,860,517 0.39 TRANSPORTATION INFRASTRUCTURE Other securities a 10,501,959 0.15 10,501,959 0.15 WATER UTILITIES Other securities a 40,697,640 0.59 40,697,640 0.59 WIRELESS TELECOMMUNICATION SERVICES Other securities a 13,567,432 0.20 13,567,432 0.20 TOTAL COMMON STOCKS (Cost: $6,616,181,265) 6,835,942,404 99.79 SHORT-TERM INVESTMENTS BlackRock Cash Funds: Prime, SL Agency Shares 0.51% d,e,f 16,944,975 $ 16,944,975 0.25% BlackRock Cash Funds: Treasury, SL Agency Shares 0.28% d,e 8,040,619 8,040,619 0.12 358,591,740 5.24 TOTAL SHORT-TERM INVESTMENTS (Cost: $358,591,740) 358,591,740 5.24 TOTAL INVESTMENTS IN SECURITIES (Cost: $6,974,773,005) 7,194,534,144 105.03 Other, Less Liabilities (344,268,763) (5.03) NET ASSETS $6,850,265,381 100.00% a Other securities are those securities, which individually, are not one of the 50 largest unaffiliated issuers and which represent less than one percent of the net assets of the Fund as of March 31, 2016. Other securities may include securities on loan and non-income earning securities. b Non-income earning security. c All or a portion of this security represents a security on loan. See Note 1. d Affiliated issuer. See Note 2. e The rate quoted is the annualized seven-day yield of the fund at period end. f All or a portion of this security represents an investment of securities lending collateral. See Note 1. MONEY MARKET FUNDS BlackRock Cash Funds: Institutional, SL Agency Shares 0.50% d,e,f 333,606,146 333,606,146 4.87 Open futures contracts as of March 31, 2016 were as follows: Issue Number of Contracts Purchased (Sold) Expiration Exchange Notional Value Unrealized Appreciation (Depreciation) S&P 500 E-Mini 52 Jun. 2016 Chicago Mercantile $5,333,900 $186,671 S&P MidCap 400 E-Mini 60 Jun. 2016 Chicago Mercantile 8,647,200 403,040 Net unrealized appreciation $589,711 See notes to financial statements. 48 2016 ishares A NNUAL R EPORT TO S HAREHOLDERS

Statements of and Liabilities ishares TRUST March 31, 2016 Core U.S. Growth ETF Core U.S. Value ETF Micro-Cap ETF ASSETS Investments, at cost: Unaffiliated $ 890,344,568 $762,405,646 $ 825,975,371 Affiliated (Note 2) 41,515,596 23,887,179 148,924,215 Total cost of investments $ 931,860,164 $786,292,825 $ 974,899,586 Investments in securities, at fair value (including securities on loan a ) (Note 1): Unaffiliated $ 865,268,816 $714,054,168 $ 692,517,894 Affiliated (Note 2) 41,512,958 23,800,978 148,924,215 Total fair value of investments 906,781,774 737,855,146 841,442,109 Cash 496 24,278 Cash pledged to broker 70,620 116,190 59,710 Receivables: Investment securities sold 2,775,114 1,624,544 1,884,743 Dividends and interest 740,272 1,218,467 1,361,766 Futures variation margin 2,690 Total 910,368,276 740,838,625 844,751,018 LIABILITIES Payables: Investment securities purchased 3,417,079 2,514,438 2,049,508 Collateral for securities on loan (Note 1) 39,616,737 17,738,398 148,451,498 Capital shares redeemed 264,989 Futures variation margin 1,045 3,247 Investment advisory fees (Note 2) 50,277 41,536 351,554 Total Liabilities 43,085,138 20,297,619 151,117,549 NET ASSETS $ 867,283,138 $720,541,006 $ 693,633,469 Net assets consist of: Paid-in capital $ 992,757,809 $843,792,074 $ 948,510,141 Undistributed (distributions in excess of) net investment income 153,891 (18,713) (51,943) Accumulated net realized loss (100,579,945) (74,847,599) (121,399,346) Net unrealized depreciation (25,048,617) (48,384,756) (133,425,383) NET ASSETS $ 867,283,138 $720,541,006 $ 693,633,469 Shares outstanding b 10,700,000 5,600,000 10,200,000 Net asset value per share $ 81.05 $ 128.67 $ 68.00 a Securities on loan with values of $38,906,088, $17,298,588 and $142,088,424, respectively. See Note 1. b No par value, unlimited number of shares authorized. See notes to financial statements. F INANCIAL S TATEMENTS 49

Statements of and Liabilities (Continued) ishares TRUST March 31, 2016 Russell 3000 ETF Russell Mid-Cap ETF Russell Mid-Cap Growth ETF ASSETS Investments, at cost: Unaffiliated $4,923,717,695 $10,533,468,441 $5,448,317,711 Affiliated (Note 2) 231,444,213 870,398,085 613,312,098 Total cost of investments $5,155,161,908 $11,403,866,526 $6,061,629,809 Investments in securities, at fair value (including securities on loan a ) (Note 1): Unaffiliated $5,979,765,121 $12,152,386,123 $6,050,329,333 Affiliated (Note 2) 236,411,135 870,398,085 613,312,098 Total fair value of investments 6,216,176,256 13,022,784,208 6,663,641,431 Cash 32,476 238,947 13,853 Cash pledged to broker 644,459 1,418,420 377,990 Receivables: Investment securities sold 15,827,592 43,159,628 16,768,192 Due from custodian (Note 4) 13 Dividends and interest 7,664,695 16,132,054 3,762,919 Total 6,240,345,491 13,083,733,257 6,684,564,385 LIABILITIES Payables: Investment securities purchased 21,727,242 53,265,336 16,836,149 Collateral for securities on loan (Note 1) 204,702,684 857,255,114 606,708,102 Capital shares redeemed 50,738 36,606 Futures variation margin 14,716 8,757 725 Investment advisory fees (Note 2) 1,009,408 1,991,817 1,244,058 Total Liabilities 227,504,788 912,521,024 624,825,640 NET ASSETS $6,012,840,703 $12,171,212,233 $6,059,738,745 Net assets consist of: Paid-in capital $5,263,275,361 $10,874,927,705 $6,055,877,985 Undistributed (distributions in excess of) net investment income 1,835,121 (60,732) 358,075 Accumulated net realized loss (313,586,174) (323,329,142) (598,837,733) Net unrealized appreciation 1,061,316,395 1,619,674,402 602,340,418 NET ASSETS $6,012,840,703 $12,171,212,233 $6,059,738,745 Shares outstanding b 49,750,000 74,650,000 65,750,000 Net asset value per share $ 120.86 $ 163.04 $ 92.16 a Securities on loan with values of $200,672,993, $841,175,904 and $594,324,649, respectively. See Note 1. b No par value, unlimited number of shares authorized. See notes to financial statements. 50 2016 ishares A NNUAL R EPORT TO S HAREHOLDERS

Statements of and Liabilities (Continued) ishares TRUST March 31, 2016 Russell Mid-Cap Value ETF ASSETS Investments, at cost: Unaffiliated $6,616,181,265 Affiliated (Note 2) 358,591,740 Total cost of investments $6,974,773,005 Investments in securities, at fair value (including securities on loan a ) (Note 1): Unaffiliated $6,835,942,404 Affiliated (Note 2) 358,591,740 Total fair value of investments 7,194,534,144 Cash 250,136 Cash pledged to broker 1,080,590 Receivables: Investment securities sold 14,083,713 Dividends and interest 13,749,858 Total 7,223,698,441 LIABILITIES Payables: Investment securities purchased 21,455,363 Collateral for securities on loan (Note 1) 350,551,121 Capital shares redeemed 21,818 Futures variation margin 11,196 Investment advisory fees (Note 2) 1,393,562 Total Liabilities 373,433,060 NET ASSETS $6,850,265,381 Net assets consist of: Paid-in capital $7,009,756,247 Distributions in excess of net investment income (378,655) Accumulated net realized loss (379,463,061) Net unrealized appreciation 220,350,850 NET ASSETS $6,850,265,381 Shares outstanding b 96,550,000 Net asset value per share $ 70.95 a Securities on loan with a value of $342,651,370. See Note 1. b No par value, unlimited number of shares authorized. See notes to financial statements. F INANCIAL S TATEMENTS 51

Statements of Operations ishares TRUST March 31, 2016 Core U.S. Growth ETF Core U.S. Value ETF Micro-Cap ETF NET INVESTMENT INCOME Dividends unaffiliated a $ 12,589,786 $ 19,979,422 $ 10,266,411 Dividends affiliated (Note 2) 25,732 141,845 Interest affiliated (Note 2) 1,206 826 908 Securities lending income affiliated net (Note 2) 362,773 227,732 5,621,516 Total investment income 12,979,497 20,349,825 15,888,835 EXPENSES Investment advisory fees (Note 2) 655,059 674,417 5,039,570 Total expenses 655,059 674,417 5,039,570 Net investment income 12,324,438 19,675,408 10,849,265 NET REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) from: Investments unaffiliated (6,269,454) (22,115,192) (46,784,622) Investments affiliated (Note 2) (6,100) 759 In-kind redemptions unaffiliated 86,932,853 70,489,657 110,466,213 In-kind redemptions affiliated (Note 2) 94,247 558,200 Futures contracts (84,990) 39,021 (294,475) Foreign currency transactions (10) (295) Net realized gain 80,666,556 48,972,435 63,386,821 Net change in unrealized appreciation/depreciation on: Investments (116,673,349) (108,029,539) (197,181,276) Futures contracts 17,249 29,266 888 Net change in unrealized appreciation/depreciation (116,656,100) (108,000,273) (197,180,388) Net realized and unrealized loss (35,989,544) (59,027,838) (133,793,567) NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $ (23,665,106) $ (39,352,430) $(122,944,302) a Net of foreign withholding tax of $1,193, $6,722 and $11,751, respectively. See notes to financial statements. 52 2016 ishares A NNUAL R EPORT TO S HAREHOLDERS

Statements of Operations (Continued) ishares TRUST March 31, 2016 Russell 3000 ETF Russell Mid-Cap ETF Russell Mid-Cap Growth ETF NET INVESTMENT INCOME Dividends unaffiliated a $ 122,863,598 $ 216,750,905 $ 74,707,880 Dividends affiliated (Note 2) 632,684 Interest affiliated (Note 2) 7,987 13,636 7,284 Securities lending income affiliated net (Note 2) 2,239,808 6,199,381 3,108,578 Total investment income 125,744,077 222,963,922 77,823,742 EXPENSES Investment advisory fees (Note 2) 12,272,386 24,745,022 15,072,538 Total expenses 12,272,386 24,745,022 15,072,538 Net investment income 113,471,691 198,218,900 62,751,204 NET REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) from: Investments unaffiliated 3,765,880 (31,325,674) (78,391,924) Investments affiliated (Note 2) (31,768) In-kind redemptions unaffiliated 312,395,000 1,236,710,969 716,696,555 In-kind redemptions affiliated (Note 2) 1,160,247 Futures contracts (81,252) (821,518) (1,062,363) Foreign currency transactions (32) Net realized gain 317,208,075 1,204,563,777 637,242,268 Net change in unrealized appreciation/depreciation on: Investments (484,732,777) (2,042,397,445) (1,024,603,741) Futures contracts 135,924 289,306 221,232 Net change in unrealized appreciation/depreciation (484,596,853) (2,042,108,139) (1,024,382,509) Net realized and unrealized loss (167,388,778) (837,544,362) (387,140,241) NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $ (53,917,087) $ (639,325,462) $ (324,389,037) a Net of foreign withholding tax of $28,862, $60,949 and $31,708, respectively. See notes to financial statements. F INANCIAL S TATEMENTS 53

Statements of Operations (Continued) ishares TRUST March 31, 2016 Russell Mid-Cap Value ETF NET INVESTMENT INCOME Dividends unaffiliated a $ 151,746,974 Interest affiliated (Note 2) 7,273 Securities lending income affiliated net (Note 2) 3,241,407 Total investment income 154,995,654 EXPENSES Investment advisory fees (Note 2) 16,645,481 Total expenses 16,645,481 Net investment income 138,350,173 NET REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) from: Investments unaffiliated (15,360,484) In-kind redemptions unaffiliated 568,634,646 Futures contracts (901,928) Net realized gain 552,372,234 Net change in unrealized appreciation/depreciation on: Investments (972,707,868) Futures contracts 269,577 Net change in unrealized appreciation/depreciation (972,438,291) Net realized and unrealized loss (420,066,057) NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $(281,715,884) a Net of foreign withholding tax of $31,165. See notes to financial statements. 54 2016 ishares A NNUAL R EPORT TO S HAREHOLDERS

Statements of Changes in Net ishares TRUST March 31, 2016 Core U.S. Growth ETF March 31, 2015 March 31, 2016 Core U.S. Value ETF March 31, 2015 INCREASE (DECREASE) IN NET ASSETS OPERATIONS: Net investment income $ 12,324,438 $ 7,677,889 $ 19,675,408 $ 16,534,628 Net realized gain 80,666,556 82,078,570 48,972,435 27,543,184 Net change in unrealized appreciation/depreciation (116,656,100) (13,168,254) (108,000,273) 14,699,354 Net increase (decrease) in net assets resulting from operations (23,665,106) 76,588,205 (39,352,430) 58,777,166 DISTRIBUTIONS TO SHAREHOLDERS: From net investment income (12,280,929) (7,739,899) (21,637,096) (16,514,716) Total distributions to shareholders (12,280,929) (7,739,899) (21,637,096) (16,514,716) CAPITAL SHARE TRANSACTIONS: Proceeds from shares sold 771,258,877 231,558,463 371,180,603 326,782,759 Cost of shares redeemed (455,992,725) (185,067,646) (479,434,843) (66,972,724) Net increase (decrease) in net assets from capital share transactions 315,266,152 46,490,817 (108,254,240) 259,810,035 INCREASE (DECREASE) IN NET ASSETS 279,320,117 115,339,123 (169,243,766) 302,072,485 NET ASSETS Beginning of year 587,963,021 472,623,898 889,784,772 587,712,287 End of year $ 867,283,138 $ 587,963,021 $ 720,541,006 $889,784,772 Undistributed (distributions in excess of) net investment income included in net assets at end of year $ 153,891 $ 3,475 $ (18,713) $ 1,321,980 SHARES ISSUED AND REDEEMED Shares sold 9,450,000 3,000,000 2,850,000 2,450,000 Shares redeemed (6,000,000) (2,400,000) (3,850,000) (500,000) Net increase (decrease) in shares outstanding 3,450,000 600,000 (1,000,000) 1,950,000 See notes to financial statements. F INANCIAL S TATEMENTS 55

Statements of Changes in Net (Continued) ishares TRUST March 31, 2016 Micro-Cap ETF March 31, 2015 March 31, 2016 Russell 3000 ETF March 31, 2015 INCREASE (DECREASE) IN NET ASSETS OPERATIONS: Net investment income $ 10,849,265 $ 10,811,831 $ 113,471,691 $ 102,307,753 Net realized gain 63,386,821 93,336,367 317,208,075 152,739,278 Net change in unrealized appreciation/depreciation (197,180,388) (75,117,344) (484,596,853) 418,271,758 Net increase (decrease) in net assets resulting from operations (122,944,302) 29,030,854 (53,917,087) 673,318,789 DISTRIBUTIONS TO SHAREHOLDERS: From net investment income (11,468,272) (11,654,267) (125,147,973) (103,166,754) Total distributions to shareholders (11,468,272) (11,654,267) (125,147,973) (103,166,754) CAPITAL SHARE TRANSACTIONS: Proceeds from shares sold 194,911,766 191,879,791 548,985,628 610,192,044 Cost of shares redeemed (302,003,767) (324,948,686) (758,006,183) (341,110,948) Net increase (decrease) in net assets from capital share transactions (107,092,001) (133,068,895) (209,020,555) 269,081,096 INCREASE (DECREASE) IN NET ASSETS (241,504,575) (115,692,308) (388,085,615) 839,233,131 NET ASSETS Beginning of year 935,138,044 1,050,830,352 6,400,926,318 5,561,693,187 End of year $ 693,633,469 $ 935,138,044 $6,012,840,703 $6,400,926,318 Undistributed (distributions in excess of) net investment income included in net assets at end of year $ (51,943) $ (8,131) $ 1,835,121 $ 3,425,387 SHARES ISSUED AND REDEEMED Shares sold 2,350,000 2,600,000 4,550,000 5,000,000 Shares redeemed (3,950,000) (4,400,000) (6,450,000) (2,850,000) Net increase (decrease) in shares outstanding (1,600,000) (1,800,000) (1,900,000) 2,150,000 See notes to financial statements. 56 2016 ishares A NNUAL R EPORT TO S HAREHOLDERS

Statements of Changes in Net (Continued) ishares TRUST March 31, 2016 Russell Mid-Cap ETF March 31, 2015 Russell Mid-Cap Growth ETF March 31, 2016 March 31, 2015 INCREASE (DECREASE) IN NET ASSETS OPERATIONS: Net investment income $ 198,218,900 $ 150,638,945 $ 62,751,204 $ 49,827,561 Net realized gain 1,204,563,777 416,385,696 637,242,268 398,422,285 Net change in unrealized appreciation/depreciation (2,042,108,139) 832,970,790 (1,024,382,509) 322,335,828 Net increase (decrease) in net assets resulting from operations (639,325,462) 1,399,995,431 (324,389,037) 770,585,674 DISTRIBUTIONS TO SHAREHOLDERS: From net investment income (214,120,530) (164,085,154) (66,097,198) (56,066,623) Total distributions to shareholders (214,120,530) (164,085,154) (66,097,198) (56,066,623) CAPITAL SHARE TRANSACTIONS: Proceeds from shares sold 3,113,165,794 2,123,881,500 1,753,142,712 1,389,242,674 Cost of shares redeemed (2,713,709,439) (644,233,906) (1,745,225,222) (523,726,298) Net increase in net assets from capital share transactions 399,456,355 1,479,647,594 7,917,490 865,516,376 INCREASE (DECREASE) IN NET ASSETS (453,989,637) 2,715,557,871 (382,568,745) 1,580,035,427 NET ASSETS Beginning of year 12,625,201,870 9,909,643,999 6,442,307,490 4,862,272,063 End of year $12,171,212,233 $12,625,201,870 $ 6,059,738,745 $6,442,307,490 Undistributed (distributions in excess of) net investment income included in net assets at end of year $ (60,732) $ 290,887 $ 358,075 $ 286,844 SHARES ISSUED AND REDEEMED Shares sold 18,650,000 12,900,000 18,700,000 15,000,000 Shares redeemed (16,950,000) (4,000,000) (18,700,000) (5,900,000) Net increase in shares outstanding 1,700,000 8,900,000 9,100,000 See notes to financial statements. F INANCIAL S TATEMENTS 57

Statements of Changes in Net (Continued) ishares TRUST Russell Mid-Cap Value ETF March 31, 2016 March 31, 2015 INCREASE (DECREASE) IN NET ASSETS OPERATIONS: Net investment income $ 138,350,173 $ 118,535,542 Net realized gain 552,372,234 553,725,705 Net change in unrealized appreciation/depreciation (972,438,291) 41,874,196 Net increase (decrease) in net assets resulting from operations (281,715,884) 714,135,443 DISTRIBUTIONS TO SHAREHOLDERS: From net investment income (151,204,560) (127,721,603) Total distributions to shareholders (151,204,560) (127,721,603) CAPITAL SHARE TRANSACTIONS: Proceeds from shares sold 1,770,819,243 2,519,800,840 Cost of shares redeemed (1,769,538,657) (1,547,249,083) Net increase in net assets from capital share transactions 1,280,586 972,551,757 INCREASE (DECREASE) IN NET ASSETS (431,639,858) 1,558,965,597 NET ASSETS Beginning of year 7,281,905,239 5,722,939,642 End of year $ 6,850,265,381 $ 7,281,905,239 Distributions in excess of net investment income included in net assets at end of year $ (378,655) $ (42,651) SHARES ISSUED AND REDEEMED Shares sold 24,250,000 35,000,000 Shares redeemed (24,500,000) (21,450,000) Net increase (decrease) in shares outstanding (250,000) 13,550,000 See notes to financial statements. 58 2016 ishares A NNUAL R EPORT TO S HAREHOLDERS

Financial Highlights ishares TRUST (For a share outstanding throughout each period) Mar. 31, 2016 Core U.S. Growth ETF Mar. 31, 2015 Mar. 31, 2014 Mar. 31, 2013 Mar. 31, 2012 Net asset value, beginning of year $ 81.10 $ 71.07 $ 58.43 $ 53.89 $ 49.68 Income from investment operations: Net investment income a 1.21 1.10 0.89 0.88 0.62 Net realized and unrealized gain (loss) b (0.17) 9.98 12.62 4.54 4.22 Total from investment operations 1.04 11.08 13.51 5.42 4.84 Less distributions from: Net investment income (1.09) (1.05) (0.87) (0.88) (0.63) Total distributions (1.09) (1.05) (0.87) (0.88) (0.63) Net asset value, end of year $ 81.05 $ 81.10 $ 71.07 $ 58.43 $ 53.89 Total return 1.31% 15.67% 23.24% 10.19% 9.90% Ratios/Supplemental data: Net assets, end of year (000s) $867,283 $587,963 $472,624 $388,537 $344,866 Ratio of expenses to average net assets 0.08% 0.12% 0.25% 0.25% 0.25% Ratio of net investment income to average net assets 1.52% 1.44% 1.36% 1.63% 1.28% Portfolio turnover rate c 14% 13% 15% 18% 20% 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. F INANCIAL H IGHLIGHTS 59

Financial Highlights (Continued) ishares TRUST (For a share outstanding throughout each period) Mar. 31, 2016 Core U.S. Value ETF Mar. 31, 2015 Mar. 31, 2014 Mar. 31, 2013 Mar. 31, 2012 Net asset value, beginning of year $ 134.82 $ 126.39 $ 106.36 $ 91.88 $ 90.33 Income from investment operations: Net investment income a 3.13 2.91 2.44 2.24 1.90 Net realized and unrealized gain (loss) b (5.93) 8.21 20.07 14.41 1.58 Total from investment operations (2.80) 11.12 22.51 16.65 3.48 Less distributions from: Net investment income (3.35) (2.69) (2.48) (2.17) (1.93) Total distributions (3.35) (2.69) (2.48) (2.17) (1.93) Net asset value, end of year $ 128.67 $ 134.82 $ 126.39 $ 106.36 $ 91.88 Total return (2.05)% 8.83% 21.34% 18.43% 4.06% Ratios/Supplemental data: Net assets, end of year (000s) $720,541 $889,785 $587,712 $404,186 $307,797 Ratio of expenses to average net assets 0.08% 0.11% 0.25% 0.25% 0.25% Ratio of net investment income to average net assets 2.41% 2.20% 2.10% 2.37% 2.23% Portfolio turnover rate c 18% 13% 13% 16% 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. 60 2016 ishares A NNUAL R EPORT TO S HAREHOLDERS

Financial Highlights (Continued) ishares TRUST (For a share outstanding throughout each period) Mar. 31, 2016 Mar. 31, 2015 Micro-Cap ETF Mar. 31, 2014 Mar. 31, 2013 Mar. 31, 2012 Net asset value, beginning of year $ 79.25 $ 77.27 $ 58.73 $ 51.35 $ 53.25 Income from investment operations: Net investment income a 0.96 0.88 0.71 0.81 0.56 Net realized and unrealized gain (loss) b (11.18) 2.05 18.62 7.58 (1.84) Total from investment operations (10.22) 2.93 19.33 8.39 (1.28) Less distributions from: Net investment income (1.03) (0.95) (0.79) (1.01) (0.62) Total distributions (1.03) (0.95) (0.79) (1.01) (0.62) Net asset value, end of year $ 68.00 $ 79.25 $ 77.27 $ 58.73 $ 51.35 Total return (12.98)% 3.87% 33.03% 16.60% (2.28)% Ratios/Supplemental data: Net assets, end of year (000s) $693,633 $935,138 $1,050,830 $540,280 $485,293 Ratio of expenses to average net assets 0.60% 0.60% 0.60% 0.60% 0.60% Ratio of net investment income to average net assets 1.29% 1.19% 1.03% 1.57% 1.17% Portfolio turnover rate c 25% 26% 26% 29% 31% 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. F INANCIAL H IGHLIGHTS 61

Financial Highlights (Continued) ishares TRUST (For a share outstanding throughout each period) Mar. 31, 2016 Russell 3000 ETF Mar. 31, 2015 Mar. 31, 2014 Mar. 31, 2013 Mar. 31, 2012 Net asset value, beginning of year $ 123.93 $ 112.36 $ 93.44 $ 83.37 $ 79.35 Income from investment operations: Net investment income a 2.23 2.06 1.83 1.74 1.38 Net realized and unrealized gain (loss) b (2.84) 11.56 18.91 10.06 4.02 Total from investment operations (0.61) 13.62 20.74 11.80 5.40 Less distributions from: Net investment income (2.46) (2.05) (1.82) (1.73) (1.38) Total distributions (2.46) (2.05) (1.82) (1.73) (1.38) Net asset value, end of year $ 120.86 $ 123.93 $ 112.36 $ 93.44 $ 83.37 Total return (0.47)% 12.18% 22.35% 14.37% 7.00% Ratios/Supplemental data: Net assets, end of year (000s) $6,012,841 $6,400,926 $5,561,693 $4,139,560 $3,439,131 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 1.85% 1.74% 1.77% 2.06% 1.82% Portfolio turnover rate c 5% 5% 5% 5% 6% a Based on average shares outstanding throughout each period. b The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund s underlying securities. c Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. See notes to financial statements. 62 2016 ishares A NNUAL R EPORT TO S HAREHOLDERS

Financial Highlights (Continued) ishares TRUST (For a share outstanding throughout each period) Mar. 31, 2016 Russell Mid-Cap ETF Mar. 31, 2015 Mar. 31, 2014 Mar. 31, 2013 Mar. 31, 2012 Net asset value, beginning of year $ 173.07 $ 154.72 $ 127.35 $ 110.75 $ 109.00 Income from investment operations: Net investment income a 2.59 2.26 2.02 1.98 1.52 Net realized and unrealized gain (loss) b (9.84) 18.52 27.44 16.71 1.79 Total from investment operations (7.25) 20.78 29.46 18.69 3.31 Less distributions from: Net investment income (2.78) (2.43) (2.09) (2.09) (1.56) Total distributions (2.78) (2.43) (2.09) (2.09) (1.56) Net asset value, end of year $ 163.04 $ 173.07 $ 154.72 $ 127.35 $ 110.75 Total return (4.18)% 13.51% 23.28% 17.14% 3.18% Ratios/Supplemental data: Net assets, end of year (000s) $12,171,212 $12,625,202 $9,909,644 $7,297,113 $6,783,639 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 1.58% 1.39% 1.43% 1.77% 1.48% Portfolio turnover rate c 11% 10% 10% 13% 13% 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. F INANCIAL H IGHLIGHTS 63

Financial Highlights (Continued) ishares TRUST (For a share outstanding throughout each period) Mar. 31, 2016 Russell Mid-Cap Growth ETF Mar. 31, 2015 Mar. 31, 2014 Mar. 31, 2013 Mar. 31, 2012 Net asset value, beginning of year $ 97.98 $ 85.83 $ 69.89 $ 62.91 $ 60.91 Income from investment operations: Net investment income a 0.96 0.86 0.69 0.79 0.50 Net realized and unrealized gain (loss) b (5.78) 12.23 16.00 7.03 2.03 Total from investment operations (4.82) 13.09 16.69 7.82 2.53 Less distributions from: Net investment income (1.00) (0.94) (0.75) (0.84) (0.53) Total distributions (1.00) (0.94) (0.75) (0.84) (0.53) Net asset value, end of year $ 92.16 $ 97.98 $ 85.83 $ 69.89 $ 62.91 Total return (4.91)% 15.33% 23.96% 12.58% 4.23% Ratios/Supplemental data: Net assets, end of year (000s) $6,059,739 $6,442,307 $4,862,272 $3,592,398 $3,431,981 Ratio of expenses to average net assets 0.25% 0.25% 0.25% 0.25% 0.25% Ratio of net investment income to average net assets 1.03% 0.95% 0.88% 1.26% 0.85% Portfolio turnover rate c 22% 20% 23% 25% 29% 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. 64 2016 ishares A NNUAL R EPORT TO S HAREHOLDERS

Financial Highlights (Continued) ishares TRUST (For a share outstanding throughout each period) Mar. 31, 2016 Russell Mid-Cap Value ETF Mar. 31, 2015 Mar. 31, 2014 Mar. 31, 2013 Mar. 31, 2012 Net asset value, beginning of year $ 75.23 $ 68.74 $ 57.15 $ 48.14 $ 48.14 Income from investment operations: Net investment income a 1.45 1.28 1.18 1.07 0.89 Net realized and unrealized gain (loss) b (4.16) 6.57 11.62 8.99 0.04 Total from investment operations (2.71) 7.85 12.80 10.06 0.93 Less distributions from: Net investment income (1.57) (1.36) (1.21) (1.05) (0.93) Total distributions (1.57) (1.36) (1.21) (1.05) (0.93) Net asset value, end of year $ 70.95 $ 75.23 $ 68.74 $ 57.15 $ 48.14 Total return (3.56)% 11.48% 22.61% 21.24% 2.11% Ratios/Supplemental data: Net assets, end of year (000s) $6,850,265 $7,281,905 $5,722,940 $4,685,906 $3,222,765 Ratio of expenses to average net assets 0.25% 0.25% 0.25% 0.25% 0.25% Ratio of net investment income to average net assets 2.05% 1.77% 1.91% 2.16% 1.97% Portfolio turnover rate c 25% 22% 23% 23% 27% 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. F INANCIAL H IGHLIGHTS 65

Notes to Financial Statements ishares TRUST Trust (the Trust ) is registered under the Investment Company Act of 1940, as amended (the 1940 Act ), as an openend management investment company. The Trust was established as a Delaware statutory trust pursuant to an Agreement and Declaration of Trust dated December 16, 1999. These financial statements relate only to the following funds (each, a Fund, and collectively, the Funds ): ETF Core U.S. Growth Core U.S. Value Micro-Cap Russell 3000 Russell Mid-Cap Russell Mid-Cap Growth Russell Mid-Cap Value Diversification Classification Diversified Diversified Diversified 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. 66 2016 ishares A NNUAL R EPORT TO S HAREHOLDERS

Notes to Financial Statements (Continued) ishares TRUST 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. N OTES TO F INANCIAL S TATEMENTS 67

Notes to Financial Statements (Continued) ishares TRUST The following table summarizes the value of each of the Funds investments according to the fair value hierarchy as of March 31, 2016. 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 Core U.S. Growth Investments: : Common Stocks $ 866,299,122 $ 14,212 $ 1,608 $ 866,314,942 Rights 446 446 Warrants 0 a 0 a Money Market Funds 40,466,386 40,466,386 Total $ 906,765,508 $ 14,658 $ 1,608 $ 906,781,774 Derivative Financial Instruments: b : Futures Contracts $ 29,773 $ $ $ 29,773 Total $ 29,773 $ $ $ 29,773 Core U.S. Value : Common Stocks $ 718,901,213 $ 5,962 $115,311 $ 719,022,486 Warrants 0 a 0 a Money Market Funds 18,832,660 18,832,660 Total $ 737,733,873 $ 5,962 $115,311 $ 737,855,146 Derivative Financial Instruments: b : Futures Contracts $ 52,923 $ $ $ 52,923 Total $ 52,923 $ $ $ 52,923 Micro-Cap : Common Stocks $ 691,891,758 $217,373 $400,457 $ 692,509,588 Rights 8,306 8,306 Money Market Funds 148,924,215 148,924,215 Total $ 840,815,973 $225,679 $400,457 $ 841,442,109 Derivative Financial Instruments: b : Futures Contracts $ 32,094 $ $ $ 32,094 Total $ 32,094 $ $ $ 32,094 68 2016 ishares A NNUAL R EPORT TO S HAREHOLDERS

Notes to Financial Statements (Continued) ishares TRUST ETF Level 1 Level 2 Level 3 Total Russell 3000 : Common Stocks $ 6,003,156,615 $ 70,819 $461,294 $ 6,003,688,728 Rights 812 812 Warrants 0 a 0 a Money Market Funds 212,486,716 212,486,716 Total $ 6,215,643,331 $ 71,631 $461,294 $ 6,216,176,256 Derivative Financial Instruments: b : Futures Contracts $ 302,047 $ $ $ 302,047 Total $ 302,047 $ $ $ 302,047 Russell Mid-Cap : Common Stocks $12,152,386,123 $ $ $12,152,386,123 Money Market Funds 870,398,085 870,398,085 Total $13,022,784,208 $ $ $13,022,784,208 Derivative Financial Instruments: b : Futures Contracts $ 756,720 $ $ $ 756,720 Total $ 756,720 $ $ $ 756,720 Russell Mid-Cap Growth : Common Stocks $ 6,050,329,333 $ $ $ 6,050,329,333 Money Market Funds 613,312,098 613,312,098 Total $ 6,663,641,431 $ $ $ 6,663,641,431 Derivative Financial Instruments: b : Futures Contracts $ 328,796 $ $ $ 328,796 Total $ 328,796 $ $ $ 328,796 Russell Mid-Cap Value : Common Stocks $ 6,835,942,404 $ $ $ 6,835,942,404 Money Market Funds 358,591,740 358,591,740 Total $ 7,194,534,144 $ $ $ 7,194,534,144 Derivative Financial Instruments: b : Futures Contracts $ 589,711 $ $ $ 589,711 Total $ 589,711 $ $ $ 589,711 a b Rounds to less than $1. Shown at the unrealized appreciation (depreciation) on the contracts. N OTES TO F INANCIAL S TATEMENTS 69

Notes to Financial Statements (Continued) ishares TRUST 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. 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. 70 2016 ishares A NNUAL R EPORT TO S HAREHOLDERS

Notes to Financial Statements (Continued) ishares TRUST 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. 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 b Core U.S. Growth Barclays Capital Inc. $ 188,008 $ 188,008 $ BNP Paribas Prime Brokerage Inc. 1,188,097 1,188,097 Citigroup Global Markets Inc. 4,401,866 4,401,866 Credit Suisse Securities (USA) LLC 707,263 707,263 Deutsche Bank Securities Inc. 4,996,837 4,996,837 Goldman Sachs & Co. 6,204,712 6,204,712 HSBC Bank PLC 212,621 212,621 Jefferies LLC 624,378 624,378 JPMorgan Clearing Corp. 5,118,189 5,118,189 Merrill Lynch, Pierce, Fenner & Smith 3,376,070 3,376,070 Morgan Stanley & Co. LLC (U.S. Equity Securities Lending) 5,631,041 5,631,041 National Financial Services LLC 369,371 369,371 Scotia Capital (USA) Inc. 296,901 296,901 SG Americas Securities LLC 42,522 42,522 State Street Bank & Trust Company 2,761,180 2,761,180 UBS Securities LLC 2,616,657 2,616,657 Wells Fargo Securities LLC 170,375 170,375 $ 38,906,088 $ 38,906,088 $ N OTES TO F INANCIAL S TATEMENTS 71

Notes to Financial Statements (Continued) ishares TRUST ETF and Counterparty Market Value of Securities on Loan Cash Collateral Received a Net Amount b Core U.S. Value Barclays Capital Inc. $ 281,010 $ 281,010 $ BNP Paribas Prime Brokerage Inc. 118,628 118,628 Citigroup Global Markets Inc. 1,011,629 1,011,629 Credit Suisse Securities (USA) LLC 375,242 375,242 Deutsche Bank Securities Inc. 1,148,081 1,148,081 Goldman Sachs & Co. 2,401,144 2,401,144 HSBC Bank PLC 486,353 486,353 Jefferies LLC 142,059 142,059 JPMorgan Clearing Corp. 5,440,060 5,440,060 Merrill Lynch, Pierce, Fenner & Smith 1,558,234 1,558,234 Morgan Stanley & Co. LLC (U.S. Equity Securities Lending) 2,424,253 2,424,253 National Financial Services LLC 76,791 76,791 SG Americas Securities LLC 63,869 63,869 State Street Bank & Trust Company 586,042 586,042 Timber Hill LLC 33,706 33,706 UBS Securities LLC 1,072,595 1,072,595 Wells Fargo Securities LLC 78,892 78,892 $ 17,298,588 $ 17,298,588 $ Micro-Cap Barclays Capital Inc. $ 2,615,071 $ 2,615,071 $ BNP Paribas Prime Brokerage Inc. 6,158,437 6,158,437 Citigroup Global Markets Inc. 6,166,882 6,166,882 Credit Suisse Securities (USA) LLC 5,266,602 5,266,602 Deutsche Bank Securities Inc. 14,319,131 14,319,131 Goldman Sachs & Co. 34,179,041 34,179,041 HSBC Bank PLC 167,574 167,574 Jefferies LLC 1,108,574 1,108,574 JPMorgan Clearing Corp. 26,826,441 26,826,441 Merrill Lynch, Pierce, Fenner & Smith 5,883,858 5,883,858 Morgan Stanley & Co. LLC (U.S. Equity Securities Lending) 19,059,060 19,059,060 National Financial Services LLC 5,409,393 5,409,393 Scotia Capital (USA) Inc. 951,201 951,201 SG Americas Securities LLC 266,565 266,565 State Street Bank & Trust Company 4,912,582 4,912,582 Timber Hill LLC 436,919 436,919 UBS Securities LLC 6,966,686 6,966,686 Wells Fargo Securities LLC 1,394,407 1,394,407 $ 142,088,424 $ 142,088,424 $ 72 2016 ishares A NNUAL R EPORT TO S HAREHOLDERS

Notes to Financial Statements (Continued) ishares TRUST ETF and Counterparty Market Value of Securities on Loan Cash Collateral Received a Net Amount b Russell 3000 Barclays Capital Inc. $ 2,324,526 $ 2,324,526 $ BNP Paribas Prime Brokerage Inc. 4,305,804 4,305,804 Citigroup Global Markets Inc. 17,527,459 17,527,459 Credit Suisse Securities (USA) LLC 8,083,968 8,083,968 Deutsche Bank Securities Inc. 22,104,366 22,104,366 Goldman Sachs & Co. 49,051,215 49,051,215 HSBC Bank PLC 1,336,739 1,336,739 Jefferies LLC 28,567 28,567 JPMorgan Clearing Corp. 37,735,127 37,735,127 Merrill Lynch, Pierce, Fenner & Smith 7,632,999 7,632,999 Morgan Stanley & Co. LLC (U.S. Equity Securities Lending) 27,236,604 27,236,604 National Financial Services LLC 1,442,904 1,442,904 Scotia Capital (USA) Inc. 932,683 932,683 SG Americas Securities LLC 1,197,050 1,197,050 State Street Bank & Trust Company 9,399,572 9,399,572 Timber Hill LLC 127,418 127,418 UBS Securities LLC 9,135,878 9,135,878 Wells Fargo Securities LLC 1,070,114 1,070,114 $ 200,672,993 $ 200,672,993 $ Russell Mid-Cap Barclays Capital Inc. $ 6,210,297 $ 6,210,297 $ BMO Capital Markets 448,962 448,962 BNP Paribas Prime Brokerage Inc. 3,363,892 3,363,892 Citigroup Global Markets Inc. 48,785,755 48,785,755 Credit Suisse Securities (USA) LLC 45,044,675 45,044,675 Deutsche Bank Securities Inc. 84,171,726 84,171,726 Goldman Sachs & Co. 162,900,596 162,900,596 HSBC Bank PLC 6,103,869 6,103,869 Jefferies LLC 2,315,430 2,315,430 JPMorgan Clearing Corp. 161,937,186 161,937,186 Merrill Lynch, Pierce, Fenner & Smith 43,221,423 43,221,423 Morgan Stanley & Co. LLC (U.S. Equity Securities Lending) 125,606,473 125,606,473 National Financial Services LLC 4,464,303 4,464,303 Scotia Capital (USA) Inc. 25,566,891 25,566,891 SG Americas Securities LLC 3,162,793 3,162,793 State Street Bank & Trust Company 53,738,473 53,738,473 Timber Hill LLC 14,512 14,512 UBS Securities LLC 62,847,133 62,847,133 Wells Fargo Securities LLC 1,271,515 1,271,515 $ 841,175,904 $ 841,175,904 $ N OTES TO F INANCIAL S TATEMENTS 73

Notes to Financial Statements (Continued) ishares TRUST ETF and Counterparty Market Value of Securities on Loan Cash Collateral Received a Net Amount b Russell Mid-Cap Growth Barclays Capital Inc. $ 7,313,505 $ 7,313,505 $ BNP Paribas Prime Brokerage Inc. 17,995,732 17,995,732 Citigroup Global Markets Inc. 50,983,540 50,983,540 Credit Suisse Securities (USA) LLC 31,765,879 31,765,879 Deutsche Bank Securities Inc. 38,630,009 38,630,009 Goldman Sachs & Co. 77,734,769 77,734,769 HSBC Bank PLC 11,207,014 11,207,014 Jefferies LLC 4,018,644 4,018,644 JPMorgan Clearing Corp. 169,581,675 169,581,675 Merrill Lynch, Pierce, Fenner & Smith 21,975,149 21,975,149 Morgan Stanley & Co. LLC (U.S. Equity Securities Lending) 82,504,707 82,504,707 National Financial Services LLC 802,346 802,346 Scotia Capital (USA) Inc. 8,115,320 8,115,320 SG Americas Securities LLC 207,525 207,525 State Street Bank & Trust Company 38,564,361 38,564,361 Timber Hill LLC 119,241 119,241 UBS Securities LLC 32,441,745 32,441,745 Wells Fargo Securities LLC 363,488 354,513 (8,975) $ 594,324,649 $ 594,315,674 $ (8,975) Russell Mid-Cap Value Barclays Capital Inc. $ 3,010,081 $ 3,010,081 $ BMO Capital Markets 715,940 715,940 BNP Paribas Prime Brokerage Inc. 1,206,311 1,206,311 Citigroup Global Markets Inc. 42,312,895 42,312,895 Credit Suisse Securities (USA) LLC 2,158,116 2,158,116 Deutsche Bank Securities Inc. 47,900,027 47,900,027 Goldman Sachs & Co. 70,678,218 70,678,218 HSBC Bank PLC 2,965,618 2,965,618 Jefferies LLC 14,171,428 14,171,428 JPMorgan Clearing Corp. 37,279,613 37,279,613 Merrill Lynch, Pierce, Fenner & Smith 39,911,524 39,911,524 Morgan Stanley & Co. LLC (U.S. Equity Securities Lending) 38,295,526 38,295,526 National Financial Services LLC 1,534,859 1,522,358 (12,501) SG Americas Securities LLC 105,536 105,536 State Street Bank & Trust Company 10,523,470 10,523,470 Timber Hill LLC 18,702 18,702 UBS Securities LLC 29,863,453 29,863,453 Wells Fargo Securities LLC 53 53 $ 342,651,370 $ 342,638,869 $(12,501) a b 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. Additional collateral is delivered to the Funds on the next business day in accordance with the MSLA. The net amount would be subject to the borrower default indemnity in the event of default by a counterparty. 74 2016 ishares A NNUAL R EPORT TO S HAREHOLDERS

Notes to Financial Statements (Continued) ishares TRUST 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 Core U.S. Growth 0.07% Core U.S. Value 0.07 Micro-Cap 0.60 Russell 3000 0.20 Prior to November 11, 2015, for its investment advisory services to each of the Core U.S. Growth and Core U.S. Value ETFs, BFA was entitled to an annual investment advisory fee of 0.09% based on the average daily net assets of each Fund. For its investment advisory services to the Russell Mid-Cap ETF, BFA is entitled to an annual investment advisory fee based on the Fund s allocable portion of the aggregate of the average daily net assets of the Fund and certain other funds, as follows: Investment Advisory Fee Aggregate Average Daily Net 0.2000% First $121 billion 0.1900 a Over $121 billion, up to and including $181 billion 0.1805 a Over $181 billion, up to and including $231 billion 0.1715 a Over $231 billion, up to and including $281 billion 0.1630 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 the Russell Mid-Cap 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 0.2000% First $121 billion 0.1900 a Over $121 billion, up to and including $211 billion 0.1805 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. N OTES TO F INANCIAL S TATEMENTS 75

Notes to Financial Statements (Continued) ishares TRUST For its investment advisory services to each of the Russell Mid-Cap Growth and Russell Mid-Cap 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 0.2500% First $121 billion 0.2375 a Over $121 billion, up to and including $181 billion 0.2257 a Over $181 billion, up to and including $231 billion 0.2144 a Over $231 billion, up to and including $281 billion 0.2037 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 Russell Mid-Cap Growth and Russell Mid-Cap 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 0.2500% First $121 billion 0.2375 a Over $121 billion, up to and including $211 billion 0.2257 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. 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. 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. 76 2016 ishares A NNUAL R EPORT TO S HAREHOLDERS

Notes to Financial Statements (Continued) ishares TRUST 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 Core U.S. Growth $ 153,629 Core U.S. Value 94,302 Micro-Cap 2,232,936 Russell 3000 948,199 Russell Mid-Cap 2,697,310 Russell Mid-Cap Growth 1,399,712 Russell Mid-Cap Value 1,358,163 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 as follow: ETF Purchases Sales Core U.S. Growth $ 57,184,005 $ 70,594,038 Core U.S. Value 102,238,672 39,937,686 Micro-Cap 55,356,177 47,450,286 Russell 3000 65,382,849 33,363,373 Russell Mid-Cap 406,716,903 438,744,943 Russell Mid-Cap Growth 709,453,279 787,321,977 Russell Mid-Cap Value 976,244,125 710,156,470 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. 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) Core U.S. Growth BlackRock Inc. 2,410 2,839 (2,176) 3,073 $ 1,046,572 $ 25,732 $ 88,147 N OTES TO F INANCIAL S TATEMENTS 77

Notes to Financial Statements (Continued) ishares TRUST 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) Core U.S. Value BlackRock Inc. 6,325 3,183 (3,726) 5,782 $ 1,969,176 $ 54,816 $ 217,392 PennyMac Financial Services Inc. Class A 726 726 8,538 PennyMac Mortgage Investment Trust 2,669 2,669 36,405 5,765 PNC Financial Services Group Inc. (The) 42,866 19,604 (27,538) 34,932 2,954,199 81,264 341,567 $ 4,968,318 $141,845 $ 558,959 Russell 3000 BlackRock Inc. 35,490 4,387 (5,488) 34,389 $11,711,862 $307,056 $ 634,819 PennyMac Financial Services Inc. Class A 3,152 3,152 37,068 PennyMac Mortgage Investment Trust 14,647 14,647 199,785 31,638 PNC Financial Services Group Inc. (The) 148,450 19,752 (26,595) 141,607 11,975,704 293,990 493,660 $23,924,419 $632,684 $ 1,128,479 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 Core U.S. Growth $ 125,755,789 $ 112,355,387 Core U.S. Value 153,780,108 141,840,302 Micro-Cap 229,819,334 209,177,162 Russell 3000 383,503,564 284,906,105 Russell Mid-Cap 1,731,973,093 1,358,050,705 Russell Mid-Cap Growth 1,536,012,544 1,336,269,942 Russell Mid-Cap Value 1,893,942,869 1,653,308,383 78 2016 ishares A NNUAL R EPORT TO S HAREHOLDERS

Notes to Financial Statements (Continued) ishares TRUST In-kind transactions (see Note 4) for the year ended March 31, 2016 were as follows: ETF In-kind Purchases In-kind Sales Core U.S. Growth $ 768,803,336 $ 454,423,453 Core U.S. Value 369,275,281 477,094,878 Micro-Cap 190,506,152 297,417,783 Russell 3000 546,310,484 753,607,834 Russell Mid-Cap 3,093,556,856 2,695,945,473 Russell Mid-Cap Growth 1,745,867,055 1,733,948,826 Russell Mid-Cap Value 1,756,252,230 1,755,624,841 4. CAPITAL SHARE TRANSACTIONS Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof ( Creation Units ) at NAV. Except when aggregated in Creation Units, shares of each Fund are not redeemable. Transactions in capital shares for each Fund are disclosed in detail in the statements of changes in net assets. The consideration for the purchase of Creation Units of a fund in the Trust generally consists of the in-kind deposit of a designated portfolio of securities and a specified amount of cash. Certain funds in the Trust may be offered in Creation Units solely or partially for cash in U.S. dollars. Investors purchasing and redeeming Creation Units may pay a purchase transaction fee and a redemption transaction fee directly to State Street Bank and Trust Company, the Trust s administrator, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units, including Creation Units for cash. Investors transacting in Creation Units for cash may also pay an additional variable charge to compensate the relevant fund for certain transaction costs (i.e., stamp taxes, taxes on currency or other financial transactions, and brokerage costs) and market impact expenses relating to investing in portfolio securities. Such variable charges, if any, are included in Proceeds from shares sold in the statements of changes in net assets. From time to time, settlement of securities related to in-kind contributions or in-kind redemptions may be delayed. In such cases, securities related to in-kind contributions are reflected as Due from custodian and securities related to in-kind redemptions are reflected as Securities related to in-kind transactions in the statements of assets and liabilities. 5. FUTURES CONTRACTS Each Fund may purchase or sell futures contracts in an effort to help such Fund track its underlying index. A futures contract is a standardized, exchange-traded agreement to buy or sell a financial instrument at a set price on a future date. Upon entering into a futures contract, the Fund is required to pledge to the executing broker which holds segregated from its own assets, an amount of cash, U.S. government securities or other high-quality debt and equity securities equal to the minimum initial margin requirements of the exchange on which the contract is traded. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as margin variation and are recorded by the Fund as unrealized appreciation or depreciation. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Losses may arise if the value of a futures contract decreases due to an unfavorable change in the market rates or values of the underlying instrument during the term of the contract or if the counterparty does not perform under the contract. The use of futures contracts also involves the risk of an imperfect correlation in the movements in the price of futures contracts and the assets underlying such contracts. N OTES TO F INANCIAL S TATEMENTS 79

Notes to Financial Statements (Continued) ishares TRUST The following table shows the value of futures contracts held as of March 31, 2016 and the related locations in the statements of assets and liabilities, presented by risk exposure category: Core U.S. Growth ETF Core U.S. Value ETF Micro-Cap ETF Russell 3000 ETF Equity contracts: Variation margin/net assets consist of net unrealized appreciation a $29,773 $ 52,923 $ 32,094 $302,047 Russell Mid-Cap ETF Russell Mid-Cap Growth ETF Russell Mid-Cap Value ETF Equity contracts: Variation margin/net assets consist of net unrealized appreciation a $756,720 $328,796 $589,711 a Represents cumulative appreciation of futures contracts as reported in the schedules of investments. Only current day s variation margin is reported separately within the statements of assets and liabilities. The following table shows the realized and unrealized gains (losses) on futures contracts held during the year ended March 31, 2016 and the related locations in the statements of operations, presented by risk exposure category: Core U.S. Growth ETF Net Realized Gain (Loss) Core U.S. Value ETF Micro-Cap ETF Russell 3000 ETF Equity contracts: Futures contracts $(84,990) $ 39,021 $ (294,475) $ (81,252) Core U.S. Growth ETF Net Change in Unrealized Appreciation/Depreciation Core U.S. Value ETF Micro-Cap ETF Russell 3000 ETF Equity contracts: Futures contracts $ 17,249 $ 29,266 $ 888 $ 135,924 Russell Mid-Cap ETF Net Realized Gain (Loss) Russell Mid-Cap Growth ETF Russell Mid-Cap Value ETF Equity contracts: Futures contracts $(821,518) $(1,062,363) $(901,928) 80 2016 ishares A NNUAL R EPORT TO S HAREHOLDERS

Notes to Financial Statements (Continued) ishares TRUST Net Change in Unrealized Appreciation/Depreciation Russell Mid-Cap ETF Russell Mid-Cap Growth ETF Russell Mid-Cap Value ETF Equity contracts: Futures contracts $289,306 $221,232 $269,577 The following table shows the average quarter-end balances of open futures contracts for the year ended March 31, 2016: Core U.S. Growth ETF Core U.S. Value ETF Micro-Cap ETF Russell 3000 ETF Average value of contracts purchased $1,270,532 $2,107,523 $2,022,998 $11,481,466 Russell Mid-Cap ETF Russell Mid-Cap Growth ETF Russell Mid-Cap Value ETF Average value of contracts purchased $31,950,400 $9,764,589 $21,993,168 6. PRINCIPAL RISKS In the normal course of business, each Fund s investment activities expose it to various types of risk associated with the financial instruments and markets in which it invests. The significant types of financial risks each Fund is exposed to include market risk and credit risk. Each Fund s prospectus provides details of these and other types of risk. BFA uses a passive or index approach to try to achieve each Fund s investment objective following the securities included in its underlying index during upturns as well as downturns. BFA does not take steps to reduce market exposure or to lessen the effects of a declining market. Divergence from the underlying index and the composition of the portfolio is monitored by BFA. MARKET RISK Market risk arises mainly from uncertainty about future values of financial instruments influenced by price, currency and interest rate movements. It represents the potential loss each Fund may suffer through holding market positions in the face of market movements. Each Fund is exposed to market risk by virtue of its investment in equity and financial derivative instruments. The fair value of securities held by the Funds may decline due to general market conditions, economic trends or events that are not specifically related to the issuers of the securities including local, regional or global political, social or economic instability or to factors that affect a particular industry or group of industries. The extent of each Fund s exposure to market risk is the market value of the investments held as shown in the Fund s schedule of investments. A diversified portfolio, where this is appropriate and consistent with a fund s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within each Fund s portfolio are disclosed in its schedule of investments. N OTES TO F INANCIAL S TATEMENTS 81

Notes to Financial Statements (Continued) ishares TRUST CREDIT RISK Credit risk is the risk that an issuer or guarantor of debt instruments or the counterparty to a financial transaction, including derivatives contracts, repurchase agreements or loans of portfolio securities, is unable or unwilling to make timely interest and/or principal payments or to otherwise honor its obligations. BFA and its affiliates manage counterparty credit risk by entering into transactions only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Funds to issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of each Fund s exposure to credit and counterparty risks with respect to those financial assets is approximated by their value recorded in its statement of assets and liabilities. 7. INCOME TAX INFORMATION Each Fund is treated as an entity separate from the Trust s other funds for federal income tax purposes. It is the policy of each Fund to qualify as a regulated investment company by complying with the provisions applicable to regulated investment companies, as defined under Subchapter M of the Internal Revenue Code of 1986, as amended, and to annually distribute substantially all of its ordinary income and any net capital gains (taking into account any capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income and excise taxes. Accordingly, no provision for federal income taxes is required. U.S. GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or NAV per share. The following permanent differences as of March 31, 2016, attributable to the characterization of corporate actions, passive foreign investment companies, distributions paid in excess of taxable income and realized gains (losses) from in-kind redemptions, were reclassified to the following accounts: ETF Paid-in Capital Undistributed Net Investment Income/Distributions in Excess of Net Investment Income Undistributed Net Realized Gain/Accumulated Net Realized Loss Core U.S. Growth $ 85,828,564 $ 106,907 $ (85,935,471) Core U.S. Value 57,361,762 620,995 (57,982,757) Micro-Cap 97,402,505 575,195 (97,977,700) Russell 3000 292,392,250 10,086,016 (302,478,266) Russell Mid-Cap 1,160,499,549 15,550,011 (1,176,049,560) Russell Mid-Cap Growth 703,623,650 3,417,225 (707,040,875) Russell Mid-Cap Value 525,194,729 12,518,383 (537,713,112) The tax character of distributions paid during the years ended March 31, 2016 and March 31, 2015 was as follows: ETF 2016 2015 Core U.S. Growth Ordinary income $12,280,929 $ 7,739,899 Core U.S. Value Ordinary income $21,637,096 $16,514,716 82 2016 ishares A NNUAL R EPORT TO S HAREHOLDERS

Notes to Financial Statements (Continued) ishares TRUST ETF 2016 2015 Micro-Cap Ordinary income $ 11,468,272 $ 11,654,267 Russell 3000 Ordinary income $125,147,973 $103,166,754 Russell Mid-Cap Ordinary income $214,120,530 $164,085,154 Russell Mid-Cap Growth Ordinary income $ 66,097,198 $ 56,066,623 Russell Mid-Cap Value Ordinary income $151,204,560 $127,721,603 As of March 31, 2016, the tax components of accumulated net earnings (losses) were as follows: ETF Undistributed Ordinary Income Capital Loss Carryforwards Net Unrealized Gains (Losses) a Qualified Late-Year Losses b Core U.S. Growth $ 140,058 $ (97,511,910) $ (27,851,298) $ (251,521) $ (125,474,671) Core U.S. Value (52,939,682) (70,310,566) (820) (123,251,068) Micro-Cap (86,693,329) (155,884,333) (12,299,010) (254,876,672) Russell 3000 1,938,562 (175,533,357) 923,711,212 (551,075) 749,565,342 Russell Mid-Cap (79,253,525) 1,378,808,034 (3,269,981) 1,296,284,528 Russell Mid-Cap Growth (550,003,999) 554,828,619 (963,860) 3,860,760 Russell Mid-Cap Value (218,376,501) 58,885,635 (159,490,866) Total a b The difference between book-basis and tax-basis unrealized gains (losses) was attributable primarily to the tax deferral of losses on wash sales, the realization for tax purposes of unrealized gains (losses) on certain futures contracts, and the realization for tax purposes of unrealized gains on investments in passive foreign investment companies. The Funds have elected to defer certain qualified late-year losses and recognize such losses in the next taxable year. As of March 31, 2016, the following Funds had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates as follows: ETF Non- Expiring a Expiring 2017 Expiring 2018 Expiring 2019 Total Core U.S. Growth $11,551,294 $14,427,568 $ 55,612,220 $ 15,920,828 $ 97,511,910 Core U.S. Value 5,208,076 34,902,303 12,829,303 52,939,682 Micro-Cap 25,558,131 44,118,736 17,016,462 86,693,329 Russell 3000 17,354,029 126,187,428 31,991,900 175,533,357 Russell Mid-Cap 51,521,470 27,732,055 79,253,525 Russell Mid-Cap Growth 49,117,533 363,363,957 137,522,509 550,003,999 Russell Mid-Cap Value 214,344,315 4,032,186 218,376,501 a Must be utilized prior to losses subject to expiration. N OTES TO F INANCIAL S TATEMENTS 83

Notes to Financial Statements (Continued) ishares TRUST For the year ended March 31, 2016, the following Funds utilized their capital loss carryforwards as follows: ETF Utilized Russell 3000 $22,748,181 Russell Mid-Cap 41,366,590 Russell Mid-Cap Value 71,185,686 The Funds may own shares in certain foreign investment entities, referred to, under U.S. tax law, as passive foreign investment companies. The Funds may elect to mark-to-market annually the shares of each passive foreign investment company and would be required to distribute to shareholders any such marked-to-market gains. As of March 31, 2016, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows: ETF Tax Cost Gross Unrealized Appreciation Gross Unrealized Depreciation Net Unrealized Appreciation (Depreciation) Core U.S. Growth $ 934,633,072 $ 38,516,304 $ (66,367,602) $ (27,851,298) Core U.S. Value 808,165,712 34,920,155 (105,230,721) (70,310,566) Micro-Cap 997,326,442 90,783,608 (246,667,941) (155,884,333) Russell 3000 5,292,465,044 1,475,541,948 (551,830,736) 923,711,212 Russell Mid-Cap 11,643,976,174 2,500,182,850 (1,121,374,816) 1,378,808,034 Russell Mid-Cap Growth 6,108,812,812 998,108,808 (443,280,189) 554,828,619 Russell Mid-Cap Value 7,135,648,509 928,103,534 (869,217,899) 58,885,635 Management has analyzed tax laws and regulations and their application to the Funds as of March 31, 2016, inclusive of the open tax return years, and does not believe there are any uncertain tax positions that require recognition of a tax liability in the Funds financial statements. 8. SUBSEQUENT EVENTS Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or disclosure in the financial statements. 84 2016 ishares A NNUAL R EPORT TO S HAREHOLDERS

Report of Independent Registered Public Accounting Firm To the Shareholders and Board of Trustees of Trust: In our opinion, the accompanying statements of assets and liabilities, including the summary schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Core U.S. Growth ETF, Core U.S. Value ETF, Micro-Cap ETF, Russell 3000 ETF, Russell Mid-Cap ETF, Russell Mid-Cap Growth ETF and Russell Mid-Cap Value ETF (the Funds ) at March 31, 2016, the results of each of their operations, the changes in each of their net assets and their financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as financial statements ) are the responsibility of the Funds management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at March 31, 2016 by correspondence with the custodian, transfer agent and brokers, provide a reasonable basis for our opinion. PricewaterhouseCoopers LLP San Francisco, California May 27, 2016 R EPORT OF I NDEPENDENT R EGISTERED P UBLIC A CCOUNTING F IRM 85

Tax Information (Unaudited) ishares TRUST The following maximum amounts are hereby designated as qualified dividend income for individuals for the fiscal year ended March 31, 2016: Qualified Dividend ETF Income Core U.S. Growth $ 11,942,607 Core U.S. Value 18,566,281 Micro-Cap 7,465,686 Russell 3000 119,848,692 Russell Mid-Cap 185,004,708 Russell Mid-Cap Growth 70,008,284 Russell Mid-Cap Value 123,079,880 For corporate shareholders, the percentage of income dividends paid during the fiscal year ended March 31, 2016 that qualified for the dividends-received deduction were as follows: Dividends- Received ETF Deduction Core U.S. Growth 93.42% Core U.S. Value 89.06 Micro-Cap 62.82 Russell 3000 96.59 Russell Mid-Cap 79.97 Russell Mid-Cap Growth 100.00 Russell Mid-Cap Value 74.70 86 2016 ishares A NNUAL R EPORT TO S HAREHOLDERS

Supplemental Information (Unaudited) ishares TRUST Section 19(a) Notices The amounts and sources of distributions reported are estimates and are provided pursuant to regulatory requirements and are not being provided for tax reporting purposes. The actual amounts and sources for tax reporting purposes will depend upon each Fund s investment experience during the year and may be subject to changes based on the tax regulations. Shareholders will receive a Form 1099-DIV each calendar year that will inform them how to report these distributions for federal income tax purposes. ETF Net Investment Income Total Cumulative Distributions for the Fiscal Year Net Realized Capital Gains Return of Capital Total Per Share % Breakdown of the Total Cumulative Distributions for the Fiscal Year Net Investment Income Net Realized Capital Gains Return of Capital Total Per Share Core U.S. Growth $ 1.080896 $ $0.009874 $1.090770 99% % 1% 100% Core U.S. Value 3.284884 0.064974 3.349858 98 2 100 Micro-Cap 0.973509 0.052570 1.026079 95 5 100 Russell 3000 2.423404 0.036805 2.460209 99 1 100 Russell Mid-Cap 2.660128 0.115595 2.775723 96 4 100 Russell Mid-Cap Growth 0.983224 0.021391 1.004615 98 2 100 Russell Mid-Cap Value 1.489675 0.084811 1.574486 95 5 100 Premium/Discount Information The Premium/Discount Information section is intended to present information about the differences between the daily market price on secondary markets for shares of a fund and that fund s NAV. NAV is the price at which a fund issues and redeems shares. It is calculated in accordance with the standard formula for valuing mutual fund shares. The Market Price of a fund generally is determined using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of such fund are listed for trading, as of the time that the fund s NAV is calculated. A fund s Market Price may be at, above or below its NAV. The NAV of a fund will fluctuate with changes in the fair value of its portfolio holdings. The Market Price of a fund will fluctuate in accordance with changes in its NAV, as well as market supply and demand. Premiums or discounts are the differences (expressed as a percentage) between the NAV and Market Price of a fund on a given day, generally at the time the NAV is calculated. A premium is the amount that a fund is trading above the reported NAV, expressed as a percentage of the NAV. A discount is the amount that a fund is trading below the reported NAV, expressed as a percentage of the NAV. The following information shows the frequency of distributions of premiums and discounts for each of the Funds. The information shown for each Fund is for five calendar years (or from the inception date of such Fund if less than five years) through the date of the most recent calendar quarter-end. The specific periods covered for each Fund are disclosed in the table for such Fund. S UPPLEMENTAL I NFORMATION 87

Supplemental Information (Unaudited) (Continued) ishares TRUST Each line in the table shows the number of trading days in which the Fund traded within the premium/discount range indicated. The number of trading days in each premium/discount range is also shown as a percentage of the total number of trading days in the period covered by each table. All data presented here represents past performance, which cannot be used to predict future results. Premium/Discount Range Core U.S. Growth ETF Period Covered: January 1, 2011 through March 31, 2016 Number of Days Percentage of Total Days Greater than 0.5%... 1 0.08% Between 0.5% and 0.5%... 1,318 99.92 1,319 100.00% Premium/Discount Range Core U.S. Value ETF Period Covered: January 1, 2011 through March 31, 2016 Number of Days Percentage of Total Days Greater than 0.5%... 1 0.08% Between 0.5% and 0.5%... 1,318 99.92 1,319 100.00% Premium/Discount Range Micro-Cap ETF Period Covered: January 1, 2011 through March 31, 2016 Number of Days Percentage of Total Days Greater than 0.05% and Less than 1.0%... 1 0.08% Between 0.5% and 0.5%... 1,317 99.84 Less than 0.5%... 1 0.08 1,319 100.00% Premium/Discount Range Russell 3000 ETF Period Covered: January 1, 2011 through March 31, 2016 Number of Days Percentage of Total Days Between 0.5% and 0.5%... 1,318 99.92% Less than 0.5%... 1 0.08 1,319 100.00% 88 2016 ishares A NNUAL R EPORT TO S HAREHOLDERS

Supplemental Information (Unaudited) (Continued) ishares TRUST Premium/Discount Range Russell Mid-Cap ETF Period Covered: January 1, 2011 through March 31, 2016 Number of Days Percentage of Total Days Between 0.5% and 0.5%... 1,319 100.00% 1,319 100.00% Premium/Discount Range Russell Mid-Cap Growth ETF Period Covered: January 1, 2011 through March 31, 2016 Number of Days Percentage of Total Days Greater than 0.5%... 1 0.08% Between 0.5% and 0.5%... 1,317 99.84 Less than 0.5% and Greater than 1.0%... 1 0.08 1,319 100.00% Premium/Discount Range Russell Mid-Cap Value ETF Period Covered: January 1, 2011 through March 31, 2016 Number of Days Percentage of Total Days Greater than 0.5%... 2 0.15% Between 0.5% and 0.5%... 1,317 99.85 1,319 100.00% Regulation under the Alternative Investment Fund Managers Directive The Alternative Investment Fund Managers Directive (the Directive ) imposes detailed and prescriptive obligations on fund managers established in the European Union (the EU ). These do not currently apply to managers established outside of the EU, such as BlackRock Fund Advisors (the Company ). Rather, non-eu managers are only required to comply with certain disclosure, reporting and transparency obligations of the Directive if such managers market a fund to EU investors. The Company has registered the Russell 3000 ETF (the Fund ) to be marketed to EU investors in the United Kingdom, the Netherlands, Finland, Sweden, and Luxembourg. Report on Remuneration The Company is required under the Directive to make quantitative disclosures of remuneration. These disclosures are made in line with BlackRock s interpretation of currently available regulatory guidance on quantitative remuneration disclosures. As market or regulatory practice develops BlackRock may consider it appropriate to make changes to the way in which quantitative remuneration disclosures are calculated. Where such changes are made, this may result in disclosures in relation to a fund not being comparable to the disclosures made in the prior year, or in relation to other BlackRock fund disclosures in that same year. S UPPLEMENTAL I NFORMATION 89

Supplemental Information (Unaudited) (Continued) ishares TRUST Disclosures are provided in relation to (a) the staff of the Company; (b) staff who are senior management; and (c) staff who have the ability to materially affect the risk profile of the Fund. All individuals included in the aggregated figures disclosed are rewarded in line with BlackRock s remuneration policy for their responsibilities across the relevant BlackRock business area. As all individuals have a number of areas of responsibilities, only the portion of remuneration for those individuals services attributable to the Fund is included in the aggregate figures disclosed. BlackRock has a clear and well defined pay-for-performance philosophy, and compensation programmes which support that philosophy. For senior management, a significant percentage of variable remuneration is deferred over time. All employees are subject to a claw-back policy. Compensation decisions for employees are made based on BlackRock s full-year financial results and other non-financial goals and objectives. Alongside financial performance, individual compensation is also based on strategic and operating results and other considerations such as management and leadership capabilities. No set formulas are established and no fixed benchmarks are used in determining annual incentive awards. Bonus pools are reviewed by BlackRock s independent compensation committee, taking into account both actual and projected financial information together with information provided by the Operational Risk and Regulatory Compliance departments in relation to any activities, incidents or events that warrant consideration in making compensation decisions. Functions such as Finance, Operational Risk, Legal & Compliance, and Human Resources each have their own organisational structures which are independent of the business units. Functional bonus pools are determined with reference to the performance of each individual function and the remuneration of the senior members of control functions is directly overseen by BlackRock s independent compensation committee. No individual is involved in setting his or her own remuneration. Members of staff and senior management of the Company typically provide both AIFMD and non-aifmd related services in respect of multiple funds, clients and functions of the Company and across the broader BlackRock group. Therefore, the figures disclosed are a sum of each individual s portion of remuneration attributable to the Fund according to an objective apportionment methodology which acknowledges the multiple-service nature of the Company. Accordingly the figures are not representative of any individual s actual remuneration or their remuneration structure. The amount of the total remuneration awarded by the Company to its staff which has been attributed to the Fund in respect of the Company s financial year ending 31 December 2015 is USD 1.04 million. This figure is comprised of fixed remuneration of USD 405.16 thousand and variable remuneration of USD 636.64 thousand. There were a total of 457 beneficiaries of the remuneration described above. The amount of the aggregate remuneration awarded by the Company, which has been attributed to the Fund in respect of the Company s financial year ending 31 December 2015, to its senior management was USD 123.81 thousand, and to members of its staff whose actions have a material impact on the risk profile of the Fund was USD 29.98 thousand. 90 2016 ishares A NNUAL R EPORT TO S HAREHOLDERS

Trustee and Officer Information ishares TRUST The Board of Trustees has responsibility for the overall management and operations of the Funds, including general supervision of the duties performed by BFA and other service providers. Each Trustee serves until he or she resigns, is removed, dies, retires or becomes incapacitated. Each officer shall hold office until his or her successor is elected and qualifies or until his or her death, or his or her resignation or removal. Trustees who are not interested persons (as defined in the 1940 Act) of the Trust are referred to as independent trustees ( Independent Trustees ). The registered investment companies advised by BFA or its affiliates (the BlackRock-advised Funds ) are organized into one complex of closed-end funds, two complexes of open-end funds and one complex of exchange-traded funds ( Exchange-Traded Fund Complex ) (each, a BlackRock Fund Complex ). Each Fund is included in the BlackRock Fund Complex referred to as the Exchange- Traded Fund Complex. Each Trustee also serves as a Director of, Inc. and a Trustee of U.S. ETF Trust and, as a result, oversees a total of 327 funds (as of March 31, 2016) within the Exchange-Traded Fund Complex. With the exception of Robert S. Kapito, Mark Wiedman and Benjamin Archibald, the address of each Trustee and officer is c/o BlackRock, Inc., 400 Howard Street, San Francisco, CA 94105. The address of Mr. Kapito, Mr. Wiedman and Mr. Archibald is c/o BlackRock, Inc., Park Avenue Plaza, 55 East 52 nd Street, New York, NY 10055. The Board has designated Cecilia H. Herbert as its Independent Board Chair. Additional information about the Funds Trustees and officers may be found in the Funds combined Statement of Additional Information, which is available without charge, upon request, by calling toll-free 1-800- (1-800-474-2737). Interested Trustees Name (Age) Position(s) Principal Occupation(s) During the Past 5 Years Other Directorships Held by Trustee During the Past 5 Years Robert S. Kapito a (59) Trustee (since 2009). President and Director, BlackRock, Inc. (since 2006); Vice Chairman of BlackRock, Inc. and Head of BlackRock, Inc. s Portfolio Management Group (since its formation in 1998) and BlackRock, Inc. s predecessor entities (since 1988); Trustee, University of Pennsylvania (since 2009); President of Board of Directors, Hope & Heroes Children s Cancer Fund (since 2002); President of the Board of Directors, Periwinkle Theatre for Youth (since 1983). Director of, Inc. (since 2009); Trustee of U.S. ETF Trust (since 2011). Mark Wiedman b (45) Trustee (since 2013). Managing Director, BlackRock, Inc. (since 2007); Global Head of (since 2011); Head of Corporate Strategy, BlackRock, Inc. (2009-2011). Director of, Inc. (since 2013); Trustee of U.S. ETF Trust (since 2013); Director of PennyMac Financial Services, Inc. (since 2008). a Robert S. Kapito is deemed to be an interested person (as defined in the 1940 Act) of the Trust due to his affiliations with BlackRock, Inc. b Mark Wiedman is deemed to be an interested person (as defined in the 1940 Act) of the Trust due to his affiliations with BlackRock, Inc. and its affiliates. T RUSTEE AND O FFICER I NFORMATION 91

Trustee and Officer Information (Continued) ishares TRUST Independent Trustees c Name (Age) Position(s) Principal Occupation(s) During the Past 5 Years Other Directorships Held by Trustee During the Past 5 Years Cecilia H. Herbert (67) Trustee (since 2005); Independent Board Chair (since 2016). Director (1998-2013) and President (2007-2011) of the Board of Directors, Catholic Charities CYO; Trustee (2002-2011) and Chair of the Finance and Investment Committee (2006-2010) of the Thacher School; Member (since 1992) and Chair (1994-2005) of the Investment Committee, Archdiocese of San Francisco; Trustee and Member of the Investment Committee, WNET, the New York public media company (since 2011). Director of, Inc. (since 2005); Trustee of U.S. ETF Trust (since 2011); Independent Board Chair of, Inc. and U.S. ETF Trust (since 2016); Director of Forward Funds (23 portfolios) (since 2009); Director of Salient MF Trust (4 portfolios) (since 2015). Jane D. Carlin (60) Trustee (since 2015); Risk Committee Chair (since 2016). Managing Director and Global Head of Financial Holding Company Governance & Assurance and the Global Head of Operational Risk Management of Morgan Stanley (2006-2012). Director of, Inc. (since 2015); Trustee of U.S. ETF Trust (since 2015); Director of PHH Corporation (mortgage solutions) (since 2012). Charles A. Hurty (72) Trustee (since 2005); Audit Committee Chair (since 2006). Retired; Partner, KPMG LLP (1968-2001). Director of, Inc. (since 2005); Trustee of U.S. ETF Trust (since 2011); Director of GMAM Absolute Return Strategy Fund (1 portfolio) (since 2002); Director of SkyBridge Alternative Investments Multi-Adviser Hedge Fund Portfolios LLC (2 portfolios) (since 2002). John E. Kerrigan (60) Trustee (since 2005); Securities Lending Committee Chair (since 2016). Chief Investment Officer, Santa Clara University (since 2002). Director of, Inc. (since 2005); Trustee of U.S. ETF Trust (since 2011). John E. Martinez (54) Trustee (since 2003); Fixed Income Plus Committee Chair (since 2016). Director of FirstREX Agreement Corp. (formerly EquityRock, Inc.) (since 2005). Director of, Inc. (since 2003); Trustee of U.S. ETF Trust (since 2011). 92 2016 ishares A NNUAL R EPORT TO S HAREHOLDERS

Trustee and Officer Information (Continued) ishares TRUST Independent Trustees c (Continued) Name (Age) Position(s) Principal Occupation(s) During the Past 5 Years Other Directorships Held by Trustee During the Past 5 Years Madhav V. Rajan (51) Trustee (since 2011); Equity Plus Committee Chair and Nominating and Governance Committee Chair (since 2016). Robert K. Jaedicke Professor of Accounting and Senior Associate Dean for Academic Affairs and Head of MBA Program, Stanford University Graduate School of Business (since 2001); Professor of Law (by courtesy), Stanford Law School (since 2005); Visiting Professor, University of Chicago (2007-2008). Director of, Inc. (since 2011); Trustee of U.S. ETF Trust (since 2011); Director, Cavium, Inc. (since 2013). c Robert H. Silver served as an Independent Trustee until March 31, 2016. T RUSTEE AND O FFICER I NFORMATION 93

Trustee and Officer Information (Continued) ishares TRUST Officers Name (Age) Manish Mehta (45) Jack Gee (56) Benjamin Archibald (40) Charles Park (48) Scott Radell (47) Amy Schioldager (53) Position(s) President (since 2013). Treasurer and Chief Financial Officer (since 2008). Secretary (since 2015). Chief Compliance Officer (since 2006). Executive Vice President (since 2012). Executive Vice President (since 2007). Principal Occupation(s) During the Past 5 Years Managing Director, BlackRock, Inc. (since 2009); Chief Operating Officer for (since 2009); Head of Strategy and Corporate Development, BGI (2005-2009); Chief of Staff to the CEO, BGI (2005-2009). Managing Director, BlackRock, Inc. (since 2009); Senior Director of Fund Administration of Intermediary Investor Business, BGI (2009); Director of Fund Administration of Intermediary Investor Business, BGI (2004-2009). Managing Director, BlackRock, Inc. (since 2014); Secretary of the BlackRockadvised Mutual Funds (since 2012); Director, BlackRock, Inc. (2010-2013). Chief Compliance Officer of BlackRock Advisors, LLC and the BlackRock-advised Funds in the Equity-Bond Complex, the Equity-Liquidity Complex and the Closed- End Complex (since 2014); Chief Compliance Officer, BFA (since 2006). Managing Director, BlackRock, Inc. (since 2009); Head of Portfolio Solutions, BlackRock, Inc. (since 2009); Head of Portfolio Solutions, BGI (2007-2009); Credit Portfolio Manager, BGI (2005-2007); Credit Research Analyst, BGI (2003-2005). Senior Managing Director, BlackRock, Inc. (since 2009); Global Head of Index Equity, BGI (2008-2009); Global Head of U.S. Indexing, BGI (2006-2008); Head of Domestic Equity Portfolio Management, BGI (2001-2006). 94 2016 ishares A NNUAL R EPORT TO S HAREHOLDERS

For more information visit www..com or call 1-800-474-2737 is-ar-306-0316 This report is intended for the Funds shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current prospectus. Investing involves risk, including possible loss of principal. The Funds are distributed by BlackRock Investments, LLC (together with its affiliates, BlackRock ). The Funds are not sponsored, endorsed, issued, sold or promoted by Frank Russell Company, nor does this company make any representation regarding the advisability of investing in the Funds. BlackRock is not affiliated with the company listed above. A description of the policies that the Funds use to determine how to vote proxies relating to portfolio securities and information about how the Funds voted proxies relating to portfolio securities during the most recent twelve-month period ending June 30 is available without charge, upon request, by calling toll-free 1-800-474-2737; on the Funds website at www..com; and on the U.S. Securities and Exchange Commission (SEC) website at www.sec.gov. The Funds file their complete schedules of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Funds Forms N-Q are available on the SEC s website or may be reviewed and copied at the SEC s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The Funds also disclose their complete schedules of portfolio holdings on a daily basis on the Funds website. The Funds complete schedules of portfolio holdings for this report are also available without charge, upon request, by calling toll-free 1-800-474-2737. 2016 BlackRock, Inc. All rights reserved. ishares and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.