iShares ESG Aware Conservative Allocation ETF (EAOK) Exchange: BATS

The Fund is a fund of funds and seeks to achieve its investment objective by investing primarily in Underlying Funds that themselves seek investment results corresponding to their own respective underlying indexes each of which takes into account environmental, social and governance (“ESG”) characteristics. The Underlying Funds invest primarily in companies or issuers that exhibit positive ESG characteristics, as identified by the index provider of each Underlying Fund in distinct asset classes, such as large-, mid- or small-capitalization U.S. or non-U.S. equity, and the broad U.S. dollar-denominated investment-grade bond market; each such asset class has its own risk profile. The BlackRock ESG Aware Conservative Allocation Index (the “Underlying Index”) is composed of a portfolio of ESG-oriented equity and fixed income Underlying Funds and measures the performance of BlackRock Index Services, LLC’s (the “Index Provider” or “BIS”) fixed allocation strategy that is intended to represent a “conservative” risk profile with a 70% allocation to fixed income and a 30% allocation to equities, as defined by BIS. BIS’s estimation of a conservative risk profile may differ from your own. The Underlying Index is rebalanced semi-annually after the market close on the last business day of April and October. At each rebalancing, the Fund will adjust its portfolio to align with the 70% allocation to fixed income and 30% allocation to equity prescribed by the Index Provider. The Fund's allocation to fixed income and equity may fluctuate due to appreciation or depreciation in the market value of the Fund's assets. At each rebalance, the Underlying Index will include a fixed allocation of 30% of its assets in Underlying Funds that invest primarily in equity securities and 70% of its assets in Underlying Funds that invest primarily in U.S. dollar-denominated investment-grade bonds. As of May 11, 2020, the Underlying Index was comprised of approximately 31.27% of its assets in Underlying Funds that invest primarily in equity securities and 68.73% of its assets in Underlying Funds that invest primarily in U.S. dollar-denominated investment-grade bonds. As of May 11, 2020, the Underlying Index was comprised of the iShares ESG MSCI USA ETF, iShares ESG MSCI USA Small-Cap ETF, iShares ESG MSCI EAFE ETF, iShares ESG MSCI EM ETF, and iShares ESG U.S. Aggregate Bond ETF. As of May 11, 2020, a significant portion of the Underlying Index is represented by treasury securities and securities of companies in the financials industry or sector. The components of the Underlying Index are unlikely to change over time. BFA uses a “passive” or indexing approach to try to achieve the Fund’s investment objective. Unlike many investment companies, the Fund does not try to “beat” the index it tracks and does not seek temporary defensive positions when markets decline or appear overvalued. Indexing may eliminate the chance that the Fund will substantially outperform the Underlying Index but also may reduce some of the risks of active management, such as poor security selection. Indexing seeks to achieve lower costs and better after-tax performance by aiming to keep portfolio turnover low in comparison to actively managed investment companies. BFA uses a representative sampling indexing strategy to manage the Fund. “Representative sampling” is an indexing strategy that involves investing in a representative sample of securities that collectively has an investment profile similar to that of an applicable underlying index. The securities selected are expected to have, in the aggregate, investment characteristics (based on factors such as market capitalization and industry weightings), fundamental characteristics (such as return variability and yield) and liquidity measures similar to those of an applicable underlying index. The Fund and an Underlying Fund may or may not hold all of the securities in the applicable Underlying Index. The Fund will invest at least 80% of its assets, exclusive of collateral held from securities lending, in the component securities of the Underlying Index and may invest up to 20% of its assets in certain index futures, options, options on index futures, swap contracts or other derivatives, as related to its Underlying Index and its component securities, cash and cash equivalents, other investment companies, as well as in securities and other instruments not included in the Underlying Index, but which BFA believes will help the Fund track the Underlying Index. The Fund seeks to track the investment results of the Underlying Index before fees and expenses of the Fund. The Fund may lend securities representing up to one-third of the value of the Fund's total assets (including the value of any collateral received). The Underlying Index is sponsored by the Index Provider, an affiliated person of the Fund and of BFA, the Fund's investment adviser. The Index Provider determines the composition and relative weightings of the securities in the Underlying Index and publishes information regarding the market value of the Underlying Index. Industry Concentration Policy. 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. For purposes of this limitation, securities of the U.S. government (including its agencies and instrumentalities) and repurchase agreements collateralized by U.S. government securities are not considered to be issued by members of any industry.