Common use of Principal Risks of Investing Clause in Contracts

Principal Risks of Investing. The Fund is subject to the risks of fixed income securities and U.S. treasury obligation risk as well as the risks and special considerations associated with investing in an index fund. Additional principal risks are identified in the Fund’s prospectus. Investment Objective, Strategy and Policies — The iShares Core U.S. Aggregate Bond ETF seeks to track the investment results of the Bloomberg Barclays U.S. Aggregate Bond Index (the “Underlying Index”), which measures the performance of the total U.S. investment-grade (as determined by Bloomberg Index Services Limited (“Bloomberg”)) bond market. The Underlying Index includes investment-grade U.S. Treasury bonds, government-related bonds, corporate bonds, mortgage- backed pass-through securities (“MBS”), commercial mortgage- backed securities and asset-backed securities (“ABS”) that are publicly offered for sale in the United States. The securities in the Underlying Index must have $300 million or more of outstanding face value and must have at least one year remaining to maturity, with the exception of amortizing securities such as ABS and MBS, which have lower thresholds as defined by Bloomberg. In addition, the securities in the Underlying Index must be denominated in U.S. dollars and must be fixed-rate and nonconvertible. Certain types of securities, such as state and local government series bonds, structured notes with embedded swaps or other special features, private placements, floating- rate securities and bonds that have been issued in one country’s currency but are traded outside of that country in a different monetary and regulatory system (Eurobonds), are excluded from the Underlying Index. The Underlying Index is market capitalization-weighted, and the securities in the Underlying Index are updated on the last business day of each month.

Principal Risks of Investing. The Fund is subject to market risk, the risks of fixed income securities and U.S. treasury obligation ESG investment strategy risk as well as the risks and special considerations associated with investing in an index fund. Additional principal risks are identified in the Fund’s prospectus. Investment Objective, Strategy and Policies — The iShares Core U.S. Aggregate iBoxx $ High Yield Corporate Bond ETF seeks to track the investment results of an index composed of U.S. dollar- denominated, high yield corporate bonds. The Fund seeks to track the Bloomberg Barclays U.S. Aggregate Bond investment results of the Markit iBoxx® USD Liquid High Yield Index (the “Underlying Index”), which measures the performance is a rules-based index consisting of the total U.S. investmentdollar-grade denominated, high yield (as determined by Bloomberg Index Services Markit Indices Limited (the “BloombergIndex Provider” or “Markit”)) bond market. The Underlying Index includes investment-grade U.S. Treasury bonds, government-related bonds, corporate bonds, mortgage- backed pass-through securities (“MBS”), commercial mortgage- backed securities and asset-backed securities (“ABS”) that are publicly offered bonds for sale in the United StatesU.S. There is no limit to the number of issues in the Underlying Index. As of February 28, 2023, the Underlying Index included approximately 1,175 constituents. As of February 28, 2023, a significant portion of the Underlying Index is represented by securities of companies in the consumer services industry or sector. The securities components of the Underlying Index are likely to change over time. Bonds in the Underlying Index must are selected from the universe of eligible bonds in the Markit iBoxx USD Corporate Bond Index using defined rules. As of June 30, 2023, the bonds eligible for inclusion in the Underlying Index include U.S. dollar- denominated high yield corporate bonds that: (i) are issued by companies domiciled in countries classified as developed markets by Markit; (ii) have an average rating of sub-investment grade (ratings from Fitch Ratings, Inc. (“Fitch”), Xxxxx'x Investors Service, Inc. (“Xxxxx'x”) or Standard & Poor's® Global Ratings, a subsidiary of S&P Global (“S&P Global Ratings”) are considered; if more than one agency provides a rating, the average rating is attached to the bond); (iii) are from issuers with at least $300 1 billion outstanding face value; (iv) have at least $400 million or more of outstanding face value and must value; (v) have an original maturity date of less than 15 years; (vi) have at least one year remaining to maturity; and (vii) have at least one year and 6 months to maturity for new index insertions. The Fund will invest at least 80% of its assets in the component securities of the Underlying Index, with and the exception Fund will invest at least 90% of amortizing its assets in fixed income securities such as ABS and MBS, which have lower thresholds as defined by Bloomberg. In addition, of the securities types included in the Underlying Index must be denominated in U.S. dollars and must be fixed-rate and nonconvertible. Certain types of securities, such as state and local government series bonds, structured notes with embedded swaps or other special features, private placements, floating- rate securities and bonds that have been issued in one country’s currency but are traded outside of that country in a different monetary and regulatory system (Eurobonds), are excluded from BFA believes will help the Fund track the Underlying Index. The Fund will invest no more than 10% of its assets in futures, options and swaps contracts that BFA believes will help the Fund track the Underlying Index as well as in fixed income securities other than the types included in the Underlying Index, but which BFA believes will help the Fund track the Underlying Index. The Fund will concentrate its investments (i.e., hold 25% or more of its total assets) in a particular industry or group of industries to approximately the same extent that the Underlying Index is market capitalization-weighted, and the securities in the Underlying Index are updated on the last business day of each monthconcentrated.

Principal Risks of Investing. The Fund is subject to the risks of fixed income securities and U.S. treasury Treasury obligation risk as well as the risks and special considerations associated with investing in an index fund. Additional principal risks are identified in the Fund’s prospectus. Investment Objective, Strategy and Policies — The iShares Core U.S. Aggregate Bond ETF seeks to track the investment results of an index composed of the total U.S. investment-grade bond market. The Fund seeks to track the investment results of the Bloomberg Barclays U.S. Aggregate Bond Index (the “Underlying Index”), which measures the performance of the total U.S. investment-grade (as determined by Bloomberg Index Services Limited (“Bloomberg”)Limited) bond market. As of February 28, 2023, there were 13,192 issues in the Underlying Index. The Underlying Index includes investment-grade U.S. Treasury bonds, government-related bonds, corporate bonds, mortgage- backed pass-through securities (“MBS”), commercial mortgage- backed securities (“CMBS”) and asset-backed securities (“ABS”) that are publicly offered for sale in the United StatesU.S. As of February 28, 2023, a significant portion of the Underlying Index is represented by MBS and U.S. Treasury securities. The components of the Underlying Index are likely to change over time. The securities in the Underlying Index must have $300 million or more of outstanding face value and must have at least one year remaining to maturity, with the exception of amortizing securities such as ABS and MBS, which have lower thresholds as defined by Bloomberg. In addition, the securities in the Underlying Index must be denominated in U.S. dollars and must be fixed-rate and nonconvertiblenon-convertible. Certain types of securities, such as state and local government series bonds, structured notes with embedded swaps or other special features, private placements, floating- floating-rate securities and bonds that have been issued in one country’s 's currency but are traded outside of that country in a different monetary and regulatory system (e.g., Eurobonds), are excluded from the Underlying Index. The Underlying Index is market capitalization-weighted, and the securities in the Underlying Index are updated on the last business day of each month. As of February 28, 2023, approximately 27.6% of the bonds represented in the Underlying Index were U.S. fixed-rate agency MBS. Such securities are issued by entities such as the Government National Mortgage Association (“Xxxxxx Xxx”), the Federal National Mortgage Association (“Xxxxxx Xxx”), and the Federal Home Loan Mortgage Corporation (“Xxxxxxx Xxx”) and are backed by pools of mortgages. Most transactions in fixed- rate MBS occur through standardized contracts for future delivery in which the exact mortgage pools to be delivered are not specified until a few days prior to settlement (to-be- announced (“TBA”) transactions). The Fund may enter into such contracts on a regular basis. The Fund, pending settlement of such contracts, will invest its assets in high-quality, liquid short- term instruments, including shares of money market funds advised by BFA or its affiliates. The Fund will assume its pro rata share of the fees and expenses of any money market fund that it may invest in, in addition to the Fund's own fees and expenses. The Fund may also acquire interests in mortgage pools through means other than such standardized contracts for future delivery. The Fund will invest at least 80% of its assets in the component securities of the Underlying Index and TBAs that have economic characteristics that are substantially identical to the economic characteristics of the component securities of the Underlying Index, and the Fund will invest at least 90% of its assets in fixed income securities of the types included in the Underlying Index that BFA believes will help the Fund track the Underlying Index. The Fund will invest no more than 10% of its assets in futures, options and swaps contracts that BFA believes will help the Fund track the Underlying Index as well as in fixed income securities other than the types included in the Underlying Index, but which BFA believes will help the Fund track the Underlying Index. The Fund will concentrate its investments (i.e., hold 25% or more of its total assets) in a particular industry or group of industries to approximately the same extent that the Underlying Index is concentrated.

Principal Risks of Investing. The Fund is subject to market risk, the risks of fixed income securities and U.S. treasury obligation ESG investment strategy risk as well as the risks and special considerations associated with investing in an index fund. Additional principal risks are identified in the Fund’s prospectus. NON-INVESTMENT GRADE FIXED INCOME FUND‌ Investment Objective, Strategy and Policies — The iShares Core U.S. Aggregate iBoxx $ High Yield Corporate Bond ETF seeks to track the investment results of an index composed of U.S. dollar- denominated, high yield corporate bonds. The Fund seeks to track the Bloomberg Barclays U.S. Aggregate Bond investment results of the Markit iBoxx® USD Liquid High Yield Index (the “Underlying Index”), which measures the performance is a rules-based index consisting of the total U.S. investmentdollar-grade denominated, high yield (as determined by Bloomberg Index Services Markit Indices Limited (the “BloombergIndex Provider” or “Markit”)) bond market. The Underlying Index includes investment-grade U.S. Treasury bonds, government-related bonds, corporate bonds, mortgage- backed pass-through securities (“MBS”), commercial mortgage- backed securities and asset-backed securities (“ABS”) that are publicly offered bonds for sale in the United StatesU.S. There is no limit to the number of issues in the Underlying Index. As of February 28, 2022, a significant portion of the Underlying Index is represented by securities of companies in the consumer services industry or sector. The securities components of the Underlying Index are likely to change over time. Bonds in the Underlying Index must are selected from the universe of eligible bonds in the Markit iBoxx USD Corporate Bond Index using defined rules. As of June 29, 2022, the bonds eligible for inclusion in the Underlying Index include U.S. dollar- denominated high yield corporate bonds that: (i) are issued by companies domiciled in countries classified as developed markets by Markit; (ii) have an average rating of sub-investment grade (ratings from Fitch Ratings, Inc. (“Fitch”), Xxxxx'x Investors Service, Inc. (“Xxxxx'x”) or Standard & Poor's® Global Ratings, a subsidiary of S&P Global (“S&P Global Ratings”) are considered; if more than one agency provides a rating, the average rating is attached to the bond); (iii) are from issuers with at least $300 1 billion outstanding face value; (iv) have at least $400 million or more of outstanding face value and must value; (v) have an original maturity date of less than 15 years; (vi) have at least one year remaining to maturity, with the exception of amortizing securities such as ABS ; and MBS, which (vii) have lower thresholds as defined by Bloomberg. In addition, the securities in the Underlying Index must be denominated in U.S. dollars at least one year and must be fixed-rate and nonconvertible. Certain types of securities, such as state and local government series bonds, structured notes with embedded swaps or other special features, private placements, floating- rate securities and bonds that have been issued in one country’s currency but are traded outside of that country in a different monetary and regulatory system (Eurobonds), are excluded from the Underlying Index. The Underlying Index is market capitalization-weighted, and the securities in the Underlying Index are updated on the last business day of each month6 months to maturity for new index insertions.

Principal Risks of Investing. The Fund is subject to the risks of fixed income securities and U.S. treasury Treasury obligation risk as well as the risks and special considerations associated with investing in an index fund. Additional principal risks are identified in the Fund’s prospectus. Investment Objective, Strategy and Policies — The iShares Core U.S. Aggregate Bond ETF seeks to track the investment results of an index composed of the total U.S. investment-grade bond market. The Fund seeks to track the investment results of the Bloomberg Barclays U.S. Aggregate Bond Index (the “Underlying Index”), which measures the performance of the total U.S. investment-grade (as determined by Bloomberg Index Services Limited (the “Index Provider” or “Bloomberg”)) bond market. The Underlying Index includes investment-grade U.S. Treasury bonds, government-related bonds, corporate bonds, mortgage- backed pass-through securities (“MBS”), commercial mortgage- backed securities (“CMBS”) and asset-backed securities (“ABS”) that are publicly offered for sale in the United StatesU.S. As of February 28, 2022, a significant portion of the Underlying Index is represented by MBS and U.S. Treasury securities. The components of the Underlying Index are likely to change over time. The securities in the Underlying Index must have $300 million or more of outstanding face value and must have at least one year remaining to maturity, with the exception of amortizing securities such as ABS and MBS, which have lower thresholds as defined by Bloomberg. In addition, the securities in the Underlying Index must be denominated in U.S. dollars and must be fixed-rate and nonconvertible. Certain types of securities, such as state and local government series bonds, structured notes with embedded swaps or other special features, private placements, floating- rate securities and bonds that have been issued in one country’s currency but are traded outside of that country in a different monetary and regulatory system (Eurobonds), are excluded from the Underlying Indexnon-convertible. The Underlying Index is market capitalization-weighted, and the securities in the Underlying Index are updated on the last business day of each month. INVESTMENT GRADE FIXED INCOME FUNDS‌ As of February 28, 2022, approximately 24% of the bonds represented in the Underlying Index were U.S. fixed-rate agency MBS. Most transactions in fixed-rate MBS occur through standardized contracts for future delivery in which the exact mortgage pools to be delivered are not specified until a few days prior to settlement (to-be-announced (“TBA”) transactions). The Fund may enter into such contracts on a regular basis. The Fund, pending settlement of such contracts, will invest its assets in high-quality, liquid short-term instruments, including shares of money market funds advised by BFA or its affiliates. The Fund will assume its pro rata share of the fees and expenses of any money market fund that it may invest in, in addition to the Fund's own fees and expenses.