Correspondence 0001193125-23-067538 from iSHARES TRUST (CIK 0001100663)
iSHARES TRUST (CIK 0001100663)
Date: March 10, 2023 · CIK: 0001100663 · Accession: 0001193125-23-067538
AI Filing Summary & Sentiment
File numbers found in text: 333-92935, 811-09102, 811-09729
Letter
VIA EDGAR Securities and Exchange Commission Investment Company Act File No. 811-09729) iShares Inc. (the “Company”) (Securities Act File No. 33-97598 and Investment Company Act File No. 811-09102)
Dear Mr. Manion:
This letter responds to your comments with respect to certain of the Trust’s and the Company’s (together, the “Registrant’s”) annual reports and post-effective amendments to the registration statement, each of which were filed by the Registrant on behalf of the series listed on Appendix A (each, a “Fund,” and together, the “Funds”). The comments were provided by the SEC staff (the “Staff”) in a telephone conversation on February 2, 2023. For your convenience, the Staff’s comments are summarized below, and each comment is followed by the Registrant’s response. Capitalized terms have the meanings assigned in each Fund’s prospectus unless otherwise defined in this letter. The following responses apply to each Fund unless stated otherwise.
Comment 1: For the ESG Aware ETFs that are fund of funds (e.g., iShares ESG Aware Conservative Allocation ETF), for the stub period ending 7/31/20, the ratios to average net assets have been annualized except for net investment income. Please confirm how the net investment income ratio was calculated (i.e., whether it was annualized or absolute).
Response: The Registrant confirms that, for the stub period ending 7/31/20, the ratio of net investment income to average net assets is annualized. The Registrant will include a footnote indicating that the ratio is annualized in future shareholder reports.
Comment 2: For the ESG Aware ETFs that are fund of funds (e.g., iShares ESG Aware Conservative Allocation ETF), please explain how the Funds’ benchmark index has been deemed to be an “appropriate broad-based securities market index” for the Funds in compliance with Form N-1A Item 4(b)(2)(iii) and Instruction 5 of Item 27(b)(7).
BRUSSELS CHICAGO FRANKFURT HOUSTON LONDON LOS ANGELES MILAN
NEW YORK PALO ALTO PARIS ROME SAN FRANCISCO WASHINGTON
March 10, 2023
Page 2
Response: The Registrant will add an additional securities market index (that is broad-based under Form N-1A) for the applicable Funds for subsequent filings.
Comment 3: The prospectus for iShares BBB Rated Corporate Bond ETF states that the Fund tracks an index of BBB (or its equivalent) rated bonds. However, the Fund Summary sections of the Fund’s shareholder reports uses BAA, which is the Moody standard, as opposed to the BBB S&P standard. Please consider using consistent credit rating standards as indicated in the name of the Fund for the Fund’s shareholder reports, or consider adding explanatory language explaining the difference between BAA and BBB.
Response: The Registrant will revise the Fund’s shareholder reports in the future to show allocation by credit quality based on the S&P standard.
Comment 4: For iShares Focused Value Factor ETF, information about the index provider for the Fund’s Underlying Index has not been provided in the shareholder reports as it is in the Fund’s prospectus. Please include additional information such as the provider of the Fund’s Underlying Index (FTSE Russell) in future shareholder reports.
Response: The Registrant will include in future shareholder reports the name of the provider of the Fund’s Underlying Index.
Comment 5: iShares Cybersecurity and Tech ETF, iShares Genomics Immunology and Healthcare ETF, and iShares Self-Driving EV and Tech ETF have been identified as non-diversified, but they appear to be operating as diversified. Please confirm whether the Funds continue to meet compliance with the non-diversification status. Please confirm that, if the Funds have been operating as diversified for three years, the Funds will receive shareholder approval prior to changing their status back to non-diversified.
Response: The Registrant confirms that the Funds operate as diversified and that, in future prospectuses and shareholder reports, the Registrant will identify the Funds as such after three years. The Registrant confirms that if the Funds were to change to non-diversified after operating as diversified for at least three years, the Registrant will seek shareholder approval prior to changing the status to non-diversified.
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March 10, 2023
Page 3
If you have any questions or need further information, please call me at (202) 303-1124.
Sincerely,
/s/ Benjamin J. Haskin
Show Raw Text
CORRESP 1 filename1.htm SEC Comment Response Letter 1875 K Street, N.W. Washington, DC 20006-1238 Tel: 202 303 1000 Fax: 202 303 2000 March 10, 2023 VIA EDGAR Mr. David Manion Securities and Exchange Commission 100 F Street, N.E. Washington, DC 20549 Re: iShares Trust (the “Trust”) (Securities Act File No. 333-92935 and Investment Company Act File No. 811-09729) iShares Inc. (the “Company”) (Securities Act File No. 33-97598 and Investment Company Act File No. 811-09102) Dear Mr. Manion: This letter responds to your comments with respect to certain of the Trust’s and the Company’s (together, the “Registrant’s”) annual reports and post-effective amendments to the registration statement, each of which were filed by the Registrant on behalf of the series listed on Appendix A (each, a “Fund,” and together, the “Funds”). The comments were provided by the SEC staff (the “Staff”) in a telephone conversation on February 2, 2023. For your convenience, the Staff’s comments are summarized below, and each comment is followed by the Registrant’s response. Capitalized terms have the meanings assigned in each Fund’s prospectus unless otherwise defined in this letter. The following responses apply to each Fund unless stated otherwise. Comment 1: For the ESG Aware ETFs that are fund of funds (e.g., iShares ESG Aware Conservative Allocation ETF), for the stub period ending 7/31/20, the ratios to average net assets have been annualized except for net investment income. Please confirm how the net investment income ratio was calculated (i.e., whether it was annualized or absolute). Response: The Registrant confirms that, for the stub period ending 7/31/20, the ratio of net investment income to average net assets is annualized. The Registrant will include a footnote indicating that the ratio is annualized in future shareholder reports. Comment 2: For the ESG Aware ETFs that are fund of funds (e.g., iShares ESG Aware Conservative Allocation ETF), please explain how the Funds’ benchmark index has been deemed to be an “appropriate broad-based securities market index” for the Funds in compliance with Form N-1A Item 4(b)(2)(iii) and Instruction 5 of Item 27(b)(7). BRUSSELS CHICAGO FRANKFURT HOUSTON LONDON LOS ANGELES MILAN NEW YORK PALO ALTO PARIS ROME SAN FRANCISCO WASHINGTON March 10, 2023 Page 2 Response: The Registrant will add an additional securities market index (that is broad-based under Form N-1A) for the applicable Funds for subsequent filings. Comment 3: The prospectus for iShares BBB Rated Corporate Bond ETF states that the Fund tracks an index of BBB (or its equivalent) rated bonds. However, the Fund Summary sections of the Fund’s shareholder reports uses BAA, which is the Moody standard, as opposed to the BBB S&P standard. Please consider using consistent credit rating standards as indicated in the name of the Fund for the Fund’s shareholder reports, or consider adding explanatory language explaining the difference between BAA and BBB. Response: The Registrant will revise the Fund’s shareholder reports in the future to show allocation by credit quality based on the S&P standard. Comment 4: For iShares Focused Value Factor ETF, information about the index provider for the Fund’s Underlying Index has not been provided in the shareholder reports as it is in the Fund’s prospectus. Please include additional information such as the provider of the Fund’s Underlying Index (FTSE Russell) in future shareholder reports. Response: The Registrant will include in future shareholder reports the name of the provider of the Fund’s Underlying Index. Comment 5: iShares Cybersecurity and Tech ETF, iShares Genomics Immunology and Healthcare ETF, and iShares Self-Driving EV and Tech ETF have been identified as non-diversified, but they appear to be operating as diversified. Please confirm whether the Funds continue to meet compliance with the non-diversification status. Please confirm that, if the Funds have been operating as diversified for three years, the Funds will receive shareholder approval prior to changing their status back to non-diversified. Response: The Registrant confirms that the Funds operate as diversified and that, in future prospectuses and shareholder reports, the Registrant will identify the Funds as such after three years. The Registrant confirms that if the Funds were to change to non-diversified after operating as diversified for at least three years, the Registrant will seek shareholder approval prior to changing the status to non-diversified. **** - 2 - March 10, 2023 Page 3 If you have any questions or need further information, please call me at (202) 303-1124. Sincerely, /s/ Benjamin J. Haskin Benjamin J. Haskin cc: Marissa Rolland Adithya Attawar Jennifer Kerslake Jakob Edson - 3 - APPENDIX A File No Registrant Name Series Name Year End Date 811-09102 iShares, Inc. iShares International High Yield Bond ETF 10/31/2022 811-09102 iShares, Inc. iShares J.P. Morgan EM Corporate Bond ETF 10/31/2022 811-09102 iShares, Inc. iShares J.P. Morgan EM High Yield Bond ETF 10/31/2022 811-09102 iShares, Inc. iShares J.P. Morgan EM Local Currency Bond ETF 10/31/2022 811-09102 iShares, Inc. iShares US & Intl High Yield Corp Bond ETF 10/31/2022 811-09729 iSHARES TRUST iShares 10+ Year Investment Grade Corporate Bond ETF 2/28/2022 811-09729 iSHARES TRUST iShares 10-20 Year Treasury Bond ETF 2/28/2022 811-09729 iSHARES TRUST iShares 1-3 Year Treasury Bond ETF 2/28/2022 811-09729 iSHARES TRUST iShares 1-5 Year Investment Grade Corporate Bond ETF 2/28/2022 811-09729 iSHARES TRUST iShares 20+ Year Treasury Bond ETF 2/28/2022 811-09729 iSHARES TRUST iShares 3-7 Year Treasury Bond ETF 2/28/2022 811-09729 iSHARES TRUST iShares 5-10 Year Investment Grade Corporate Bond ETF 2/28/2022 811-09729 iSHARES TRUST iShares 7-10 Year Treasury Bond ETF 2/28/2022 811-09729 iSHARES TRUST iShares Agency Bond ETF 2/28/2022 811-09729 iSHARES TRUST iShares Broad USD Investment Grade Corporate Bond ETF 2/28/2022 811-09729 iSHARES TRUST iShares California Muni Bond ETF 2/28/2022 811-09729 iSHARES TRUST iShares Core 10+ Year USD Bond ETF 2/28/2022 811-09729 iSHARES TRUST iShares Core 5-10 Year USD Bond ETF 2/28/2022 811-09729 iSHARES TRUST iShares Core U.S. Aggregate Bond ETF 2/28/2022 811-09729 iSHARES TRUST iShares ESG Aware 1-5 Year USD Corporate Bond ETF 2/28/2022 811-09729 iSHARES TRUST iShares ESG Aware U.S. Aggregate Bond ETF 2/28/2022 811-09729 iSHARES TRUST iShares ESG Aware USD Corporate Bond ETF 2/28/2022 811-09729 iSHARES TRUST iShares Government/Credit Bond ETF 2/28/2022 A-1 811-09729 iSHARES TRUST iShares High Yield Bond Factor ETF 2/28/2022 811-09729 iSHARES TRUST iShares iBoxx $ High Yield Corporate Bond ETF 2/28/2022 811-09729 iSHARES TRUST iShares iBoxx $ Investment Grade Corporate Bond ETF 2/28/2022 811-09729 iSHARES TRUST iShares Intermediate Government/Credit Bond ETF 2/28/2022 811-09729 iSHARES TRUST iShares Investment Grade Bond Factor ETF 2/28/2022 811-09729 iSHARES TRUST iShares MBS ETF 2/28/2022 811-09729 iSHARES TRUST iShares National Muni Bond ETF 2/28/2022 811-09729 iSHARES TRUST iShares New York Muni Bond ETF 2/28/2022 811-09729 iSHARES TRUST iShares Short Treasury Bond ETF 2/28/2022 811-09729 iSHARES TRUST iShares Short-Term National Muni Bond ETF 2/28/2022 811-09729 iSHARES TRUST 25+ Year Treasury STRIPS Bond ETF 2/28/2022 811-09729 iSHARES TRUST BBB Rated Corporate Bond ETF 2/28/2022 811-09729 iSHARES TRUST USD Bond Factor 2/28/2022 811-09729 iSHARES TRUST 0-3 Months Treasury Bond ETF 2/28/2022 811-09729 iSHARES TRUST iShares Factors US Growth Style ETF 3/31/2022 811-09729 iSHARES TRUST iShares Factors US Value Style ETF 3/31/2022 811-09729 iSHARES TRUST iShares Focused Value Factor ETF 3/31/2022 811-09729 iSHARES TRUST iShares U.S. Aerospace & Defense ETF 3/31/2022 811-09729 iSHARES TRUST iShares U.S. Broker-Dealers & Securities Exchanges ETF 3/31/2022 811-09729 iSHARES TRUST iShares U.S. Healthcare Providers ETF 3/31/2022 811-09729 iSHARES TRUST iShares U.S. Home Construction ETF 3/31/2022 811-09729 iSHARES TRUST iShares U.S. Infrastructure ETF 3/31/2022 811-09729 iSHARES TRUST iShares U.S. Insurance ETF 3/31/2022 811-09729 iSHARES TRUST iShares U.S. Medical Devices ETF 3/31/2022 A-2 811-09729 iSHARES TRUST iShares U.S. Oil & Gas Exploration & Production ETF 3/31/2022 811-09729 iSHARES TRUST iShares U.S. Oil Equipment & Services ETF 3/31/2022 811-09729 iSHARES TRUST iShares U.S. Pharmaceuticals ETF 3/31/2022 811-09729 iSHARES TRUST iShares U.S. Real Estate ETF 3/31/2022 811-09729 iSHARES TRUST iShares U.S. Regional Banks ETF 3/31/2022 811-09729 iSHARES TRUST iShares U.S. Telecommunications ETF 3/31/2022 811-09729 iSHARES TRUST iShares US Small Cap Value Factor ETF 3/31/2022 811-09729 iSHARES TRUST iShares ESG Aware Aggressive Allocation ETF 7/31/2022 811-09729 iSHARES TRUST iShares ESG Aware Conservative Allocation ETF 7/31/2022 811-09729 iSHARES TRUST iShares ESG Aware Growth Allocation ETF 7/31/2022 811-09729 iSHARES TRUST iShares ESG Aware Moderate Allocation ETF 7/31/2022 811-09729 iSHARES TRUST iShares China Large-Cap ETF 7/31/2022 811-09729 iSHARES TRUST iShares Core Aggressive Allocation ETF 7/31/2022 811-09729 iSHARES TRUST iShares Core Conservative Allocation ETF 7/31/2022 811-09729 iSHARES TRUST iShares Core Growth Allocation ETF 7/31/2022 811-09729 iSHARES TRUST iShares Core Moderate Allocation ETF 7/31/2022 811-09729 iSHARES TRUST iShares Core MSCI EAFE ETF 7/31/2022 811-09729 iSHARES TRUST iShares Core MSCI Europe ETF 7/31/2022 811-09729 iSHARES TRUST iShares Core MSCI International Developed Markets ETF 7/31/2022 811-09729 iSHARES TRUST iShares Core MSCI Pacific ETF 7/31/2022 811-09729 iSHARES TRUST iShares Core MSCI Total International Stock ETF 7/31/2022 811-09729 iSHARES TRUST iShares Morningstar Multi-Asset Income ETF 7/31/2022 811-09729 iSHARES TRUST iShares MSCI ACWI ETF 7/31/2022 811-09729 iSHARES TRUST iShares MSCI ACWI Low Carbon Target ETF 7/31/2022 A-3 811-09729 iSHARES TRUST iShares MSCI All Country Asia ex Japan ETF 7/31/2022 811-09729 iSHARES TRUST iShares MSCI China A ETF 7/31/2022 811-09729 iSHARES TRUST iShares MSCI Europe Financials ETF 7/31/2022 811-09729 iSHARES TRUST iShares MSCI Europe Small-Cap ETF 7/31/2022 811-09729 iSHARES TRUST iShares MSCI Intl Momentum Factor ETF 7/31/2022 811-09729 iSHARES TRUST iShares MSCI Intl Quality Factor ETF 7/31/2022 811-09729 iSHARES TRUST iShares MSCI Intl Size Factor ETF 7/31/2022 811-09729 iSHARES TRUST iShares MSCI Intl Value Factor ETF 7/31/2022 811-09729 iSHARES TRUST iShares MSCI Kokusai ETF 7/31/2022 811-09729 iSHARES TRUST iShares MSCI USA Momentum Factor ETF 7/31/2022 811-09729 iSHARES TRUST iShares MSCI USA Quality Factor ETF 7/31/2022 811-09729 iSHARES TRUST iShares MSCI USA Size Factor ETF 7/31/2022 811-09729 iSHARES TRUST iShares MSCI USA Value Factor ETF 7/31/2022 811-09729 iSHARES TRUST Cloud 5G and Tech ETF 7/31/2022 811-09729 iSHARES TRUST Cybersecurity and Tech ETF 7/31/2022 811-09729 iSHARES TRUST Exponential Technologies ETF 7/31/2022 811-09729 iSHARES TRUST Genomic Immunology and Healthcare ETF 7/31/2022 811-09729 iSHARES TRUST Robotics and Artificial Intelligence Multisector ETF 7/31/2022 811-09729 iSHARES TRUST Self-Driving EV and Tech ETF 7/31/2022 811-09729 iSHARES TRUST U.S. Tech Breakthrough and Multisector ETF 7/31/2022 811-09729 iSHARES TRUST Virtual Work and Life Multisector ETC 7/31/2022 811-09729 iSHARES TRUST ESG Advanced Investment Grade Corporate Bond ETF 2/28/2022 811-09729 iSHARES TRUST ESG Advanced Total USD Bond Market ETF 2/28/2022 811-09729 iSHARES TRUST ESG Screened S&P 500 ETF 3/31/2022 811-09729 iSHARES TRUST ESG Screened S&P Mid-Cap ETF 3/31/2022 811-09729 iSHARES TRUST ESG Screened S&P Small-Cap ETF 3/31/2022 A-4