2024 Summary Prospectus - iShares
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MARCH 1, 2024
2024 Summary Prospectus
• iShares Commodity Curve Carry Strategy ETF | CCRV | NYSE ARCA
Before you invest, you may want to review the Fund’s prospectus, which contains more
information about the Fund and its risks. You can find the Fund’s prospectus (including
amendments and supplements) and other information about the Fund, including the
Fund’s statement of additional information and shareholder reports, online at https://
www.blackrock.com/prospectus. You can also get this information at no cost by calling
1-800-iShares (1-800-474-2737) or by sending an e-mail request to
iSharesETFs@blackrock.com, or from your financial professional. The Fund’s prospectus
and statement of additional information, both dated March 1, 2024, as amended and
supplemented from time to time, are incorporated by reference into (legally made a part
of) this Summary Prospectus. Information on the Fund’s net asset value, market price,
premiums and discounts, and bid-ask spreads can be found at www.iShares.com.
The Securities and Exchange Commission and Commodity Futures Trading
Commission (“CFTC”) have not approved or disapproved these securities or passed
upon the adequacy of this prospectus. Any representation to the contrary is a criminal
offense.iSHARES® COMMODITY CURVE CARRY
STRATEGY ETF
Ticker: CCRV Stock Exchange: NYSE Arca
Investment Objective
The iShares Commodity Curve Carry Strategy ETF (the “Fund”) seeks to track the
investment results of an index composed of commodities with the top ten highest
ranking roll yields, on a total return basis, selected from a broad commodity universe.
Fees and Expenses
The following table describes the fees and expenses that you will incur if you buy, hold
and sell shares of the Fund. The investment advisory agreement between iShares U.S.
ETF Trust (the “Trust”) and BlackRock Fund Advisors (“BFA”) (the “Investment Advisory
Agreement”) provides that BFA will pay all operating expenses of the Fund, except: (i)
the management fees, (ii) interest expenses, (iii) taxes, (iv) expenses incurred with
respect to the acquisition and disposition of portfolio securities, commodities or other
financial instruments and the execution of portfolio transactions, including brokerage
commissions, (v) distribution fees or expenses, and (vi) litigation expenses and any
extraordinary expenses.
The Fund may incur “Acquired Fund Fees and Expenses.” Acquired Fund Fees and
Expenses reflect the Fund’s pro rata share of the fees and expenses incurred indirectly
by the Fund as a result of investing in other investment companies. The impact of
Acquired Fund Fees and Expenses is included in the total returns of the Fund. Acquired
Fund Fees and Expenses are not included in the calculation of the ratio of expenses to
average net assets shown in the Financial Highlights section of the Fund’s prospectus
(the “Prospectus”). BFA, the investment adviser to the Fund, has contractually agreed
to waive a portion of its management fees in an amount equal to the Acquired Fund
Fees and Expenses, if any, attributable to investments by the Fund in other funds
advised by BFA, or its affiliates, through March 1, 2025. The contractual waiver may be
terminated prior to March 1, 2025 only upon written agreement of the Trust and BFA.
You may pay other fees, such as brokerage commissions and other fees to
financial intermediaries, which are not reflected in the tables and examples
below.
Annual Fund Operating Expenses
(ongoing expenses that you pay each year as a
percentage of the value of your investments)1
Total Annual
Fund
Distribution Total Annual Operating
and Acquired Fund Fund Expenses
Management Service (12b-1) Other Fees Operating After
Fees Fees Expenses and Expenses Expenses Fee Waiver Fee Waiver
0.40% None None 0.03% 0.43% (0.03)% 0.40%
1
Operating expenses paid by BFA under the Investment Advisory Agreement exclude Acquired
Fund Fees and Expenses, if any.
S-1Example. This Example is intended to help you compare the cost of owning shares of
the Fund with the cost of investing in other funds. The Example assumes that you
invest $10,000 in the Fund for the time periods indicated and then sell all of your
shares at the end of those periods. The Example also assumes that your investment
has a 5% return each year and that the Fund’s operating expenses remain the same.
Although your actual costs may be higher or lower, based on these assumptions, your
costs would be:
1 Year 3 Years 5 Years 10 Years
$41 $135 $238 $539
Portfolio Turnover. The Fund may pay energy, precious metals, and industrial
transaction costs, such as commissions, metals commodities listed on U.S. and
when it, directly or indirectly through a non-U.S. futures exchanges, as
subsidiary, buys and sells securities or determined by ICE Data Services, LLC
other assets (or “turns over” its (“IDI” or the “Index Provider”). The
portfolio). A higher portfolio turnover Underlying Index is rebalanced on a
rate may indicate higher transaction monthly basis and could contain more
costs and may result in higher taxes than 10 contracts during the
when Fund shares are held in a taxable rebalancing period. The Fund seeks to
account. These costs, which are not achieve its investment objective
reflected in the Annual Fund Operating primarily by investing in a total return
Expenses or in the Example, affect the swap on the Underlying Index.
Fund’s performance. During the most The Fund, through its Subsidiary (as
recent fiscal year, the Fund’s portfolio defined below) will invest in financial
turnover rate was 0% of the average instruments that provide exposure to
value of its portfolio. commodities, and not in the physical
Principal Investment commodities themselves. Although the
Fund reserves the right to invest in a
Strategies broad range of financial instruments,
The Fund seeks to track the investment the Fund expects to obtain a substantial
results of the ICE BofA Commodity amount of its exposure to the
Enhanced Carry Total Return Index (the investment results of the Underlying
“Underlying Index”), which measures Index by entering into total return swaps
the performance of the 10 commodity that provide returns similar to the
futures contracts representing the commodity futures contracts referenced
underlying commodities with the largest in the Underlying Index.
global production value, where more
In order to maintain exposure to a
weight in the Underlying Index is given
futures contract on a particular
to those contracts having the highest
commodity, an investor must sell the
degree of backwardation or lowest
position in the expiring contract and buy
degree of contango (i.e., those with the
a new position in a contract with a later
highest “positive carry,” as explained
delivery month, which is referred to as
below) among a universe of 22 futures
“rolling.” If the price for the new futures
contracts on physical agricultural,
contract is less than the price of the
S-2expiring contract, then the market for the Underlying Index but also may
the commodity is said to be in reduce some of the risks of active
“backwardation.” In these markets, management, such as poor selection of
investors experience positive roll securities and/or other instruments.
returns, which is referred to as “positive Indexing seeks to achieve lower costs
carry.” The term “contango” is used to and better after-tax performance by
describe a market in which the price for aiming to keep portfolio turnover low in
a new futures contract is more than the comparison to actively managed
price of the expiring contract. In these investment companies.
markets, investors experience negative BFA uses a representative sampling
roll returns, which is referred to as indexing strategy to manage the Fund.
“negative carry.” The Underlying Index “Representative sampling” is an
seeks to employ a positive carry indexing strategy that involves investing
strategy that emphasizes commodities in a representative sample of securities
and futures contract months with the and/or other instruments that
greatest degree of backwardation and collectively has an investment profile
lowest degree of contango, resulting in similar to that of an applicable
net gains through positive roll returns. underlying index. The securities and/or
The Fund is expected to establish new other instruments selected are
total return swap contracts on the expected to have, in the aggregate,
Underlying Index on an ongoing basis investment characteristics (based on
and replace expiring contracts. Total factors such as market value and
return swaps subsequently acquired by industry weightings), fundamental
the Fund may have terms that differ characteristics (such as return
from the swaps the Fund previously variability, duration, maturity, credit
held. The Fund generally expects to pay ratings and yield) and liquidity measures
a fixed payment rate and swap-related similar to those of an applicable
fees to each counterparty and receive underlying index. The Fund may or may
the total return of the Underlying Index, not hold all of the securities and/or
including, in the event of negative other instruments in the Underlying
performance by the Underlying Index, a Index.
negative return (i.e., a payment from the The Fund also seeks to generate
Fund to the swap counterparty). As of interest income and capital appreciation
October 31, 2023, the Underlying Index on the cash balances arising from its
was comprised of 12 components. investment in Commodity Investments
BFA uses an indexing approach to try to (as defined below) through a cash
achieve the Fund’s investment management strategy consisting
objective. Unlike many investment primarily of investments in cash and
companies, the Fund does not try to cash equivalents, short-term
“beat” the index it tracks and does not government obligations, and short-term
seek temporary defensive positions fixed-income securities (collectively,
when markets decline or appear “Fixed-Income Investments”). The Fund
overvalued. invests in Fixed-Income Investments for
Indexing may eliminate the chance that investment purposes and to provide
the Fund will substantially outperform sufficient assets to account for (or
“cover”) mark-to-market changes and to
S-3collateralize the Subsidiary’s Fund, which limit the ability of
investments in derivatives on a day-to- investment companies to invest directly
day basis. in Commodity Investments.
The Fund may also invest in swaps on The remainder of the Fund’s assets will
commodity futures contracts that are be invested directly by the Fund,
not included in the Underlying Index but primarily in Fixed-Income Investments,
provide exposure to commodities from including repurchase agreements,
the same sectors as those found in the money market instruments, U.S.
Underlying Index, as well as in futures, government and agency securities,
options and forwards that provide sovereign debt obligations on non-U.S.
exposure to commodities from such countries (excluding emerging market
sectors (collectively with total return countries), commercial paper, non-
swaps on the Underlying Index, the convertible corporate debt securities,
“Commodity Investments”). The Fund and obligations of U.S. and non-U.S.
will invest in Commodity Investments banks and similar institutions.
solely through its Subsidiary. The CFTC has adopted certain
INVESTING IN DERIVATIVE CONTRACTS requirements that subject the adviser of
MAY HAVE A LEVERAGING EFFECT ON a registered investment company to
THE FUND BECAUSE OF THE LEVERAGE regulation by the CFTC if such
INHERENT IN THE USE OF DERIVATIVES. registered investment company invests
The Fund seeks to gain exposure to more than a prescribed level of its net
Commodity Investments by investing asset value in commodity interests,
through a wholly-owned subsidiary including futures, options and swaps, or
organized in the Cayman Islands (the if the registered investment company
“Subsidiary”). The Subsidiary is advised markets itself as providing investment
by BFA and has the same investment exposure to such instruments. Due to
objective as the Fund. Unlike the Fund, the Fund’s potential use of commodity
the Subsidiary is not an investment interests above the prescribed levels, it
company registered under the is considered a “commodity pool” under
Investment Company Act of 1940, as the Commodity Exchange Act (“CEA”).
amended (the “1940 Act”). The The Underlying Index is sponsored by
Subsidiary invests solely in Commodity the Index Provider, which
Investments and cash and cash is independent of the Fund and BFA. The
equivalents. Index Provider determines the
In compliance with Subchapter M of the composition and relative weightings of
Internal Revenue Code of 1986, as the securities in the Underlying Index
amended (the “Internal Revenue Code”), and publishes information regarding the
the Fund may invest up to 25% of its market value of the Underlying Index.
total assets in the Subsidiary. The
Fund’s Commodity Investments held in Summary of Principal Risks
the Subsidiary are intended to provide As with any investment, you could lose
the Fund with exposure to broad all or part of your investment in the
commodities consistent with current Fund, and the Fund’s performance could
U.S. federal income tax laws applicable trail that of other investments. The Fund
to investment companies such as the is subject to certain risks, including the
S-4principal risks noted below, any of in other asset classes, such as stocks,
which may adversely affect the Fund’s bonds and cash. Commodity-linked
net asset value per share (“NAV”), derivatives are subject to the risk that
trading price, yield, total return and the counterparty to the transaction, the
ability to meet its investment objective. exchange or trading facility on which
Certain key risks are prioritized below they trade or the applicable clearing
(with others following in alphabetical house may default or otherwise fail to
order), but the relative significance of perform. The Fund’s use of commodity-
any risk is difficult to predict and may linked derivatives may also have a
change over time. You should review leveraging effect on the Fund’s portfolio
each risk factor carefully. because of the leverage inherent in the
Commodity-Linked Derivatives Risk. use of derivatives. Leverage generally
The commodities markets are volatile, magnifies the effect of a change in the
and movements in the market price of value of an asset and creates a risk of
one or more of the underlying loss of value on a larger pool of assets
commodities could cause the Fund to than the Fund would otherwise have
incur large losses. It is possible that the had. The Fund is required to post margin
Fund could lose all or substantially all of with respect to its holdings in
its investment. Prices of commodity- derivatives. Each of these factors and
linked investments have a historically events could have a significant negative
low correlation with the returns of the impact on the Fund.
stock and bond markets and are subject Carry Strategy Risk. The futures
to change based on a variety of factors market for a commodity in which the
that may not be anticipated by the price for a new futures contract is less
Fund’s adviser. The value of a than the price of an expiring contract,
commodity-linked derivative known as a market trading in a state of
instrument (including swaps based on “backwardation,” may not continue to
such instruments) typically is based trade with the same degree of
upon the price movements of the backwardation or with the resulting
underlying commodity or an economic returns. To the extent that a commodity
variable linked to such price futures market is not trading in a state
movements. The current market prices, of backwardation (or is trading in such a
or “spot prices,” and the price at a state, but to a lesser degree), the Fund’s
specified future date implied by the cost to maintain exposure to the
value of certain commodity-linked commodity may increase, the positive
derivatives (including swaps based on carry strategy may prove unsuccessful,
such instruments), or the “futures and the investment performance of the
prices,” for commodities will vary Fund may suffer.
depending upon expectations regarding Futures Contract Risk. Futures are
market conditions. The value of standardized, exchange-traded
commodity-linked investments tied to contracts that obligate a purchaser to
both spot and futures prices of take delivery, and a seller to make
commodities may fluctuate quickly and delivery, of a specific amount of an
dramatically as a result of changes asset at a specified future date at a
affecting a particular commodity and specified price. Unlike equities, which
may not correlate to price movements typically entitle the holder to a
S-5continuing ownership stake in an issuer, result in significant losses. Certain
futures contracts normally specify a standardized interest rate and credit
certain date for settlement in cash default swaps are required to be traded
based on the level of the reference rate. on an exchange or trading platform and
The primary risks associated with the centrally cleared. Most other swaps are
use of futures contracts, or swaps or entered into a negotiated, bi-lateral
other derivatives referencing futures basis and traded in the over-the-counter
contracts, are: (i) the imperfect market. Swaps are subject to bi-lateral
correlation between the change in variation margin. The Fund is required
market value of the instruments held by by financial regulators to post initial
the Fund and the price of the futures margin in connection with trading over-
contract; (ii) possible lack of a liquid the-counter swaps. These requirements
secondary market for a futures contract may raise the costs for the Fund’s
and the resulting inability to close a investment in swaps.
futures contract when desired; (iii) Market Risk. The Fund could lose
losses caused by unanticipated market money over short periods due to short-
movements, which are potentially term market movements and over
unlimited; (iv) BFA’s inability to predict longer periods during more prolonged
correctly the direction of prices and market downturns. Local, regional or
other economic factors; and (v) the global events such as war, acts of
possibility that the counterparty will terrorism, public health issues,
default in the performance of its recessions, the prospect or occurrence
obligations. To the extent that the Fund of a sovereign default or other financial
is exposed to rolling futures contracts, it crisis, or other events could have a
may be subject to additional risk. In significant impact on the Fund and its
addition, CFTC regulations limit the investments and could result in
types of foreign listed futures contracts increased premiums or discounts to the
that U.S. investors, like the Fund, are Fund’s NAV.
allowed to invest in. As a result, the
Fund may not be able to gain the Index-Related Risk. There is no
exposure it seeks through certain non- guarantee that the Fund’s investment
U.S. futures contracts. results will have a high degree of
correlation to those of the Underlying
Risk of Swap Agreements. A swap is a Index or that the Fund will achieve its
two-party contract that generally investment objective. Market
obligates each counterparty to disruptions and regulatory restrictions
exchange periodic payments based on a could have an adverse effect on the
pre-determined underlying investment Fund’s ability to adjust its exposure to
or notional amount and to exchange the required levels in order to track the
collateral to secure the obligations of Underlying Index. Errors in index data,
each counterparty. Swaps may be index computations or the construction
leveraged and are subject to of the Underlying Index in accordance
counterparty risk, credit risk and pricing with its methodology may occur from
risk. Swaps may be subject to illiquidity time to time and may not be identified
risk, and it may not be possible for the and corrected by the Index Provider for
Fund to liquidate a swap position at an a period of time or at all, which may
advantageous time or price, which may have an adverse impact on the Fund and
S-6its shareholders. Unusual market respect to the Fund and no other
conditions or other unforeseen Authorized Participant is able to step
circumstances (such as natural forward to create or redeem, Fund
disasters, political unrest or war) may shares may be more likely to trade at a
impact the Index Provider or a third- premium or discount to NAV and
party data provider, and could cause the possibly face trading halts or delisting.
Index Provider to postpone a scheduled Calculation Methodology Risk. The
rebalance. This could cause the Index Provider relies on various sources
Underlying Index to vary from its normal of information to assess the criteria of
or expected composition. components of the Underlying Index,
Asset Class Risk. Securities and other including information that may be based
assets in the Fund’s portfolio may on assumptions and estimates. Neither
underperform in comparison to the the Fund nor BFA can offer assurances
general financial markets, a particular that the Index Provider’s calculation
financial market or other asset methodology or sources of information
classes (including the futures market). will provide an accurate assessment of
Assets Under Management (AUM) included components.
Risk. From time to time, an Authorized Cash Management Risk. If a significant
Participant (as defined in the Creations amount of the Fund’s assets is invested
and Redemptions section of this in cash and cash equivalents, the Fund
Prospectus), a third-party investor, the may underperform other funds that do
Fund’s adviser or an affiliate of the not similarly invest in cash and cash
Fund’s adviser, or a fund may invest in equivalents for investment purposes
the Fund and hold its investment for a and/or to collateralize derivative
specific period of time to allow the Fund instruments.
to achieve size or scale. There can be Cash Transactions Risk. The Fund
no assurance that any such entity would expects to effect all of its creations and
not redeem its investment or that the redemptions for cash, rather than in-
size of the Fund would be maintained at kind securities. As a result, the Fund
such levels, which could negatively may have to sell portfolio securities at
impact the Fund. inopportune times in order to obtain the
Authorized Participant Concentration cash needed to meet redemption
Risk. Only an Authorized Participant orders. This may cause the Fund to sell
may engage in creation or redemption a security and recognize a capital gain
transactions directly with the Fund, and or loss that might not have been
none of those Authorized Participants is incurred if it had made a redemption
obligated to engage in creation and/or in-kind. The use of cash creations and
redemption transactions. The Fund has redemptions may also cause the Fund’s
a limited number of institutions that shares to trade in the market at wider
may act as Authorized Participants on bid-ask spreads or greater premiums or
an agency basis (i.e., on behalf of other discounts to the Fund’s NAV.
market participants). To the extent that Commodity Market Disruption Risk.
Authorized Participants exit the The commodity markets are subject to
business or are unable to proceed with temporary distortions and other
creation or redemption orders with disruptions due to, among other factors,
S-7lack of liquidity, the participation of swaps or certain other investments
speculators, and government regulation, could change at any time.
intervention and other actions. U.S. Commodity Risk. The Fund has
futures exchanges and some foreign substantial exposure to commodities.
exchanges limit the amount of The Fund invests in instruments that are
fluctuation in futures contract prices susceptible to fluctuations in certain
that may occur in a single business day commodity markets and to price
(generally referred to as “daily price changes due to trade relations,
fluctuation limits”). The maximum or including the imposition of tariffs by the
minimum price of a contract as a result U.S. and other importing countries. Any
of these limits is referred to as a “limit negative changes in commodity markets
price.” If the limit price has been that may be due to changes in supply
reached in a particular contract, no and demand for commodities, market
trades may be executed beyond the events, war, regulatory developments,
limit price. Limit prices have the effect political instability, other catastrophic
of precluding trading in a particular events, or other factors that the Fund
contract or forcing the liquidation of cannot control could have an adverse
contracts at disadvantageous times or impact on the Commodity Investments
prices. The CFTC and the U.S. in which the Fund invests.
commodities exchanges are also
authorized to take other actions in the Concentration Risk. The Fund may be
event of a market emergency, including, susceptible to an increased risk of loss,
for example, the imposition of higher including losses due to adverse events
margin requirements and the that affect the Fund’s investments more
suspension of trading. Any of those than the market as a whole, to the
actions, if taken, could adversely affect extent that the Fund’s investments are
the returns of the Fund. concentrated in the securities and/or
other assets of a particular issuer or
The constituents of the Underlying Index issuers, country, group of countries,
may experience such disruptions in region, market, industry, group of
trading. The Fund may be negatively industries, sector, market segment or
impacted by the cessation of trading in asset class.
futures contracts included in the Fund’s
Underlying Index or by a futures Counterparty Risk. Certain commodity-
exchange imposing a limit price. linked derivative instruments, uncleared
swaps agreements and other forms of
Commodity Regulatory Risk. The Fund financial instruments that involve
and the Subsidiary are deemed counterparties subject the Fund to the
commodity pools and BFA is considered risk that the counterparty could default
a commodity pool operator (“CPO”) with on its obligations under the agreement,
respect to the Fund and the Subsidiary either through the counterparty’s
under the CEA. BFA is therefore subject bankruptcy or failure to perform its
to regulation by the SEC and the CFTC. obligations. In the event of a
BFA is also subject to regulation by the counterparty default, the Fund could
National Futures Association (“NFA”). experience lengthy delays in recovering
The regulatory requirements governing some or all of its assets or obtain no
the use of commodity futures, recovery at all and, if the counterparty
options on commodity futures, certain
S-8is subject to specified types of Authorized Participants or issuers of
resolution proceedings, the Fund may securities in which the Fund invests.
be subject to stays that limit its ability Derivatives Risk. The Fund’s use of
to close out positions and limit risk. The derivatives may reduce the Fund’s
Fund’s investments in the futures returns or increase volatility. Volatility is
markets also introduce the risk that its defined as the characteristic of a
futures commission merchant (“FCM”) security, a currency, an index or a
could default on an obligation set forth market to fluctuate significantly in price
in an agreement between the Fund and within a short time period. Derivatives
the FCM, including the FCM’s obligation may also be subject to counterparty
to return margin posted in connection risk, which is the risk that the other
with the Fund’s futures contracts. party in the transaction will not fulfill its
Credit Risk. Debt issuers and other contractual obligation. A risk of the
counterparties may be unable or Fund’s use of derivatives is that the
unwilling to make timely interest and/or fluctuations in their values may not
principal payments when due or correlate perfectly with the value of the
otherwise honor their obligations. underlying asset, the performance of
Changes in an issuer’s credit rating or the asset class to which the Fund seeks
the market’s perception of an issuer’s exposure or the performance of the
creditworthiness may also adversely overall markets. The possible lack of a
affect the value of the Fund’s liquid secondary market for derivatives
investment in that issuer. The degree of and the resulting inability of the Fund to
credit risk depends on an issuer’s or sell or otherwise close a derivatives
counterparty’s financial condition and position could expose the Fund to
on the terms of an obligation. losses and could make derivatives more
Cybersecurity Risk. Failures or difficult for the Fund to value accurately.
breaches of the electronic systems of The Fund could also suffer losses
the Fund, the Fund’s adviser, distributor, related to its derivatives positions as a
the Index Provider and other service result of unanticipated market
providers, market makers, Authorized movements, or movements between the
Participants or the issuers of securities time of periodic reallocations of Fund
in which the Fund invests have the assets, which losses are potentially
ability to cause disruptions, negatively unlimited. Certain derivatives may give
impact the Fund’s business operations rise to a form of leverage and may
and/or potentially result in financial expose the Fund to greater risk and
losses to the Fund and its shareholders. increase its costs. The impact of U.S.
While the Fund has established business and global regulation of derivatives may
continuity plans and risk management make derivatives more costly, may limit
systems seeking to address system the availability of derivatives, may delay
breaches or failures, there are inherent or restrict the exercise by the Fund of
limitations in such plans and systems. termination rights or remedies upon a
Furthermore, the Fund cannot control counterparty default under derivatives
the cybersecurity plans and systems of held by the Fund (which could result in
the Fund’s Index Provider and other losses), or may otherwise adversely
service providers, market makers, affect the value or performance of
derivatives. In addition, the Fund’s use
S-9of derivatives may expose the Fund to mature, are near maturity or are called,
risks related to potential operational or the Fund otherwise needs to
issues, such as documentation and purchase additional bonds.
settlement issues, systems failures, Indexing Investment Risk. The Fund is
inadequate controls and human error. not actively managed, and BFA generally
Derivatives may also involve legal risks, does not attempt to take defensive
including insufficient documentation, positions under any market conditions,
insufficient capacity or authority of a including declining markets.
counterparty, and legality and
enforceability of a contract. Infectious Illness Risk. A widespread
outbreak of an infectious illness, such
Energy Sector Risk. The performance as the COVID-19 pandemic, may result
of energy-related commodities is in travel restrictions, disruption of
generally cyclical and highly dependent healthcare services, prolonged
on energy prices. The market value of quarantines, cancellations, supply chain
energy-related commodities may disruptions, business closures, lower
decline for many reasons, including, consumer demand, layoffs, ratings
among others, changes in energy prices, downgrades, defaults and other
energy supply and demand, global significant economic, social and political
political changes, terrorism, natural impacts. Markets may experience
disasters and other catastrophes; temporary closures, extreme volatility,
government regulations, taxation severe losses, reduced liquidity and
policies and energy conservation increased trading costs. Such events
efforts. The energy sector has recently may adversely affect the Fund and its
experienced increased volatility. In investments and may impact the Fund’s
particular, significant market volatility in ability to purchase or sell securities or
the crude oil markets as well as the oil cause elevated tracking error and
futures markets, which resulted in the increased premiums or discounts to the
market price of the front month WTI Fund’s NAV. Despite the development of
crude oil futures contract falling below vaccines, the duration of the COVID-19
zero for a period of time. pandemic and its effects cannot be
Geographic Risk. A natural disaster predicted with certainty.
could occur in a geographic region in Interest Rate Risk. During periods of
which the Fund invests, which could very low or negative interest rates, the
adversely affect the economy or the Fund may be unable to maintain positive
business operations of companies in the returns or pay dividends to Fund
specific geographic region, causing an shareholders. Very low or negative
adverse impact on the Fund’s interest rates may magnify interest rate
investments in, or which are exposed to, risk. Changing interest rates, including
the affected region. rates that fall below zero, may have
Income Risk. The Fund’s income may unpredictable effects on markets, result
decline when yields fall. This decline can in heightened market volatility and
occur because the Fund may detract from the Fund’s performance to
subsequently invest in lower-yielding the extent the Fund is exposed to such
Fixed-Income Investments as Fixed- interest rates. Additionally, under
Income Investments in its portfolio certain market conditions in which
S-10interest rates are low and the market own or manage a substantial amount of
prices for portfolio securities have Fund shares, or may invest in the Fund
increased, the Fund may have a very low and hold their investment for a limited
or even negative yield. A low or negative period of time. There can be no
yield would cause the Fund to lose assurance that any large shareholder or
money in certain conditions and over large group of shareholders would not
certain time periods. An increase in redeem their investment. Redemptions
interest rates will generally cause the of a large number of Fund shares could
value of securities held by the Fund to require the Fund to dispose of assets to
decline, may lead to heightened meet the redemption requests, which
volatility in the fixed-income markets can accelerate the realization of taxable
and may adversely affect the liquidity of income and/or capital gains and cause
certain fixed-income investments, the Fund to make taxable distributions
including those held by the Fund. to its shareholders earlier than the Fund
Because rates on certain floating rate otherwise would have. In addition,
debt securities typically reset only under certain circumstances, non-
periodically, changes in prevailing redeeming shareholders may be treated
interest rates (and particularly sudden as receiving a disproportionately large
and significant changes) can be taxable distribution during or with
expected to cause some fluctuations in respect to such year. In some
the net asset value of the Fund to the circumstances, the Fund may hold a
extent that it invests in floating rate relatively large proportion of its assets
debt securities. The historically low in cash in anticipation of large
interest rate environment in recent redemptions, diluting its investment
years heightens the risks associated returns. These large redemptions may
with rising interest rates. also force the Fund to sell portfolio
Issuer Risk. The performance of the securities when it might not otherwise
Fund depends on the performance of do so, which may negatively impact the
individual securities or other assets to Fund’s NAV, increase the Fund’s
which the Fund has exposure as well as brokerage costs and/or have a material
the correlation among the assets. effect on the market price of the Fund
Changes in the financial condition or shares.
credit rating of an issuer of those Management Risk. As the Fund will not
securities or of securities referenced by fully replicate the Underlying Index, it is
swaps or other derivatives or the seller subject to the risk that BFA’s
or counterparty with respect to investment strategy may not produce
derivatives or other assets may cause the intended results.
the value of the securities, derivatives, Market Trading Risk. The Fund faces
or other assets to decline. numerous market trading risks,
Large Shareholder and Large-Scale including the potential lack of an active
Redemption Risk. Certain market for Fund shares, losses from
shareholders, including an Authorized trading in secondary markets, periods of
Participant, a third-party investor, the high volatility and disruptions in the
Fund’s adviser or an affiliate of the creation/redemption process. ANY OF
Fund’s adviser, a market maker, or THESE FACTORS, AMONG OTHERS,
another entity, may from time to time MAY LEAD TO THE FUND’S SHARES
S-11TRADING AT A PREMIUM OR Risk of Investing in Gold. The Fund has
DISCOUNT TO NAV. exposure to gold through its
Non-Diversification Risk. The Fund is investments in total return swaps on the
classified as “non-diversified.” This Underlying Index. Thus, the Fund’s
means that, compared with other funds portfolio may be adversely affected by
that are classified as “diversified,” the changes or trends in the price of gold.
Fund may invest a greater percentage of The price of gold and of gold-related
its assets in securities issued by or instruments historically has been
representing a small number of volatile, which may adversely affect the
issuers or in derivatives with a limited value of total return swaps on the
number of counterparties. As a result, Underlying Index. Governments, central
the Fund’s performance may depend on banks, or other larger holders can
the performance of a small number of influence the production and sale of
issuers and counterparties. gold, which may adversely affect the
performance of the Fund.
Operational Risk. The Fund is exposed
to operational risks arising from a Risk of Investing in Precious Metals.
number of factors, including, but not Prices of precious metals and of
limited to, human error, processing and precious metal-related financial
communication errors, errors of the instruments historically have been very
Fund’s service providers, counterparties volatile. The high volatility of precious
or other third parties, failed or metal prices may adversely affect the
inadequate processes and technology prices of financial instruments that
or systems failures. The Fund and BFA derive their value from the price of
seek to reduce these operational risks underlying precious metals. The
through controls and procedures. production and sale of precious metals
However, these measures do not by governments or central banks or
address every possible risk and may be other larger holders can be affected by
inadequate to address significant various economic, financial, social and
operational risks. political factors, which may be
unpredictable and may have a
Risk of Investing in Agriculture and significant impact on the prices of
Livestock. Investments in the precious metals.
agricultural and livestock sectors may
be volatile and change unpredictably as Risk of Investing in the U.S. Certain
a result of many factors, such as changes in the U.S. economy, such as
legislative or regulatory developments when the U.S. economy weakens or
relating to food safety, the imposition of when its financial markets decline, may
tariffs or other trade restraints, and the have an adverse effect on the securities
supply and demand of each commodity. to which the Fund has exposure.
Increased competition and changes in Small Fund Risk. When the Fund’s size
consumer tastes and spending can also is small, the Fund may experience low
influence the demand for agricultural trading volume and wide bid/ask
and livestock products, affecting the spreads. In addition, the Fund may face
price of such commodities and the the risk of being delisted if the Fund
performance of the Fund. does not meet certain conditions of the
listing exchange. Any resulting
S-12liquidation of the Fund could cause the operations, which could reduce the
Fund to incur elevated transaction costs Fund’s ability to gain investment
for the Fund and negative tax exposure to commodities. Fund
consequences for its shareholders. shareholders could also experience
Subsidiary Risk. In compliance with adverse tax consequences in such
Subchapter M of the Internal Revenue circumstances.
Code, the Fund may invest up to 25% of Tracking Error Risk. The Fund may be
its total assets in the Subsidiary. By subject to “tracking error,” which is the
investing in the Subsidiary, the Fund is divergence of the Fund’s performance
indirectly exposed to the risks from that of the Underlying Index.
associated with the Subsidiary’s Tracking error may occur because of
investments. The Subsidiary is not differences between the securities and
registered under the 1940 Act, and, other instruments held in the Fund’s
unless otherwise noted in this portfolio and those included in the
Prospectus, is not subject to the Underlying Index, pricing
investor protections of the 1940 Act. differences (including, as applicable,
Changes in the laws of the U.S. and/or differences between a security’s price
the Cayman Islands could result in the at the local market close and the Fund’s
inability of the Fund and/or the valuation of a security at the time of
Subsidiary to operate as described in calculation of the Fund’s NAV),
the Prospectus and the Statement of transaction costs incurred by the Fund,
Additional Information (“SAI”), and the Fund’s holding of uninvested cash,
could adversely affect the Fund. differences in timing of the accrual or
Tax Risk. The Fund invests in the valuation of distributions, the
commodity-linked derivatives indirectly requirements to maintain pass-through
through the Subsidiary because income tax treatment, portfolio transactions
from these investments, if made carried out to minimize the distribution
directly, might not be treated as of capital gains to shareholders,
“qualifying income” for purposes of the acceptance of custom baskets, changes
Fund qualifying as a regulated to the Underlying Index or the costs to
investment company (“RIC”) for U.S. the Fund of complying with various new
federal income tax purposes. Based on or existing regulatory requirements,
final regulations issued by the U.S. among other reasons. This risk may be
Internal Revenue Service (“IRS”) on heightened during times of increased
which taxpayers may rely for taxable market volatility or other unusual
years beginning after September 28, market conditions. Tracking error also
2016, the Fund expects its income with may result because the Fund incurs fees
respect to the Subsidiary to be and expenses, while the Underlying
qualifying income. In the future, if the Index does not. INDEX ETFs THAT
IRS issues new regulations or other TRACK INDICES WITH SIGNIFICANT
guidance, or Congress enacts WEIGHT IN FUTURES CONTRACTS
legislation, limiting the circumstances in ISSUERS MAY EXPERIENCE HIGHER
which the Fund’s income with respect to TRACKING ERROR THAN OTHER INDEX
the Subsidiary will be considered ETFs THAT DO NOT TRACK SUCH
“qualifying income,” the Fund might be INDICES.
required to make changes to its
S-13Valuation Risk. The price the Fund when shareholders will not be able to
could receive upon the sale of a security purchase or sell the Fund’s shares.
or other asset may differ from the Authorized Participants who purchase or
Fund’s valuation of the security or other redeem Fund shares on days when the
asset, particularly for securities or other Fund is holding fair-valued securities
assets that trade in low volume or may receive fewer or more shares, or
volatile markets, or assets that are lower or higher redemption proceeds,
impacted by market disruption events than they would have received had the
or that are valued using a fair value securities not been fair valued or been
methodology as a result of trade valued using a different methodology.
suspensions or for other reasons. In The ability to value investments may be
addition, the value of the securities or impacted by technological issues or
other assets in the Fund’s portfolio may errors by pricing services or other third-
change on days or during time periods party service providers.
Performance Information
The bar chart and table that follow show how the Fund has performed on a calendar
year basis and provide some indication of the risks of investing in the Fund by showing
how the Fund’s average annual returns for 1 year and since inception compare with the
Underlying Index. Prior to March 1, 2021, the Fund operated as a transparent active
ETF. Both assume that all dividends and distributions have been reinvested in the Fund.
Past performance (before and after taxes) does not necessarily indicate how the Fund
will perform in the future. If BFA had not waived certain Fund fees during certain
periods, the Fund’s returns would have been lower.
Calendar Year by Year Returns
40%
33.51%
30%
19.04%
20%
10% 6.57%
0%
2021 2022 2023
The best calendar quarter return during the periods shown above was 23.21% in the
1st quarter of 2022; the worst was -12.48% in the 3rd quarter of 2022.
Updated performance information, including the Fund’s current NAV, may be obtained
by visiting our website at www.iShares.com or by calling 1-800-iShares (1-800-474-
2737) (toll free).
S-14Average Annual Total Returns
(for the periods ended December 31, 2023)
Since
One Year Inception
(Inception Date: 9/1/2020)
Return Before Taxes 6.57% 19.00%
Return After Taxes on Distributions1 3.68% 11.19%
Return After Taxes on Distributions and Sale of Fund Shares1 3.92% 11.38%
ICE BofA Commodity Enhanced Carry Total Return Index (Index
returns do not reflect deductions for fees, expenses, or taxes) 7.28% 19.80%
1
After-tax returns in the table above are calculated using the historical highest individual
U.S. federal marginal income tax rates and do not reflect the impact of state or local taxes.
Actual after-tax returns depend on an investor’s tax situation and may differ from those
shown, and after-tax returns shown are not relevant to tax-exempt investors or investors
who hold shares through tax-deferred arrangements, such as 401(k) plans or individual
retirement accounts (“IRAs”). Fund returns after taxes on distributions and sales of Fund
shares are calculated assuming that an investor has sufficient capital gains of the same
character from other investments to offset any capital losses from the sale of Fund shares.
As a result, Fund returns after taxes on distributions and sales of Fund shares may exceed
Fund returns before taxes and/or returns after taxes on distributions.
S-15Management Tax Information
Investment Adviser. BlackRock Fund The Fund intends to make distributions
Advisors. that may be taxable to you as ordinary
Portfolio Managers. Richard Mejzak, income or capital gains, unless you are
Orlando Montalvo, Greg Savage and investing through a tax-deferred
Paul Whitehead (the “Portfolio arrangement such as a 401(k) plan or
Managers”) are primarily responsible for an IRA, in which case, your distributions
the day-to-day management of the generally will be taxed when withdrawn.
Fund. Each Portfolio Manager Payments to Broker-Dealers
supervises a portfolio management
team. Mr. Mejzak and Mr. Whitehead
and Other Financial
have been Portfolio Managers of the Intermediaries
Fund since 2020 and 2022, If you purchase shares of the Fund
respectively. Mr. Montalvo and Mr. through a broker-dealer or other
Savage have been Portfolio Managers of financial intermediary (such as a bank),
the Fund since 2023. BFA or other related companies may
pay the intermediary for marketing
Purchase and Sale of Fund activities and presentations, educational
Shares training programs, conferences, the
The Fund is an ETF. Individual shares of development of technology platforms
the Fund may only be bought and sold in and reporting systems or other services
the secondary market through a broker- related to the sale or promotion of the
dealer. Because ETF shares trade at Fund. These payments may create a
market prices rather than at NAV, conflict of interest by influencing the
shares may trade at a price greater than broker-dealer or other intermediary and
NAV (a premium) or less than NAV (a your salesperson to recommend the
discount). An investor may incur costs Fund over another investment. Ask your
attributable to the difference between salesperson or visit your financial
the highest price a buyer is willing to intermediary’s website for more
pay to purchase shares of the Fund (bid) information.
and the lowest price a seller is willing to
accept for shares of the Fund (ask)
when buying or selling shares in the
secondary market (the “bid-ask
spread”).
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For more information visit www.iShares.com or call 1-800-474-2737
IS-SP-CCRV-0324
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