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2024-07-31 0.1766 0.1638 0.2735 -0.1041 0.2000 0.1778 -0.1861 0.1680 0.1794 0.1675 -0.1014 0.2766 0.2026 0.1815 -0.1838 0.1719 2024-11-21 N-1A BLACKROCK FUNDS 2024-11-27 2024-11-27 Fund Overview Key Facts About iShares Russell Small/Mid-Cap Index Fund Investment Objective <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The investment objective of iShares Russell Small/Mid-Cap Index Fund (the “Fund”), a series of BlackRock Funds</span><span style="color: #000000; font-family: arial; font-size: 5pt; position: relative; top: -3.25pt;">SM</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">(the “Trust”), is to seek to track the performance of the small to mid-cap segment of the U.S. equity universe.</span></div> Fees and Expenses of the Fund <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">This table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">You may pay </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">other fees, such as brokerage commissions and other fees to your financial professional or your selected securities </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">dealer, broker, investment adviser, service provider or industry professional (including BlackRock Advisors, LLC </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">(</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">“</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">BlackRock</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">”</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">) and its affiliates) (each, a </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">“</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">Financial Intermediary</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">”</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">), which are not reflected in the table and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">example below.</span><span style="color: #000000; font-family: arial; font-size: 1pt; line-height: 0.93pt;"> </span></div> Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0003 0.0003 0.0025 0 0.0013 0.0011 0.0012 0.0010 0.0001 0.0001 0.0041 0.0014 -0.0003 -0.0001 0.0038 0.0013 June 30, 2026 Example: <div style="line-height: 10.695pt; text-align: left;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">This Example is intended to help you compare the cost of investing in shares of the Fund with the cost of investing in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">other mutual funds. The Example assumes that you invest $10,000 in shares of the Fund for the time periods </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investment has a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">costs may be higher or lower, based on these assumptions your costs would be:</span><span style="color: #000000; font-family: arial; font-size: 1pt; line-height: 0.93pt;"> </span></div> 39 129 227 515 13 44 78 178 Portfolio Turnover: <div style="line-height: 10.695pt; text-align: left;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">43</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">% of the average value of its portfolio.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> 0.43 Principal Investment Strategies of the Fund <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund seeks to track the investment results of the Russell 2500</span><span style="color: #000000; font-family: arial; font-size: 5pt; position: relative; top: -3.25pt;">TM</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Index (the “Underlying Index”), which measures </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the performance of the small to mid-cap segment of the U.S. equity universe, commonly referred to as “smid” cap. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Underlying Index is a subset of the Russell 3000</span><span style="color: #000000; font-family: arial; font-size: 5pt; position: relative; top: -3.25pt;">®</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Index. It includes approximately 2500 of the smallest securities </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">based on a combination of their market cap and current index membership. Components primarily include industrials, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">financials, consumer discretionary and health care companies. The components of the Underlying Index, and the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">degree to which these components represent certain industries, may change over time.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">BlackRock uses a representative sampling indexing strategy to manage the Fund. “Representative sampling” is an </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">indexing strategy that involves investing in a representative sample of securities that collectively has an investment </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">profile similar to that of the Underlying Index. The securities selected are expected to have, in the aggregate, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investment characteristics (based on factors such as market capitalization and industry weightings), fundamental </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">characteristics (such as return variability and yield) and liquidity measures similar to those of the Underlying Index. The </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Fund may or may not hold all of the securities in the Underlying Index.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund generally invests at least 90% of its assets, plus the amount of any borrowing for investment purposes, in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities of the Underlying Index.</span></div> Principal Risks of Investing in the Fund You may lose part or all of your investment in the Fund or your investment may not perform as well as other similar investments. <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Equity Securities Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Stock markets are volatile. The price of equity securities fluctuates based on changes in a </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">company’s financial condition and overall market and economic conditions.</span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Index-Related Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — The index provider may rely on various sources of information to assess the criteria of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">components of the Underlying Index, including information that may be based on assumptions and estimates. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Neither the Fund nor BlackRock can offer assurances that the index provider’s methodology or sources of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">information will provide an accurate assessment of included components. Errors in index data, index computations </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">or the construction of the Underlying Index in accordance with its methodology may occur, and the index provider </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">may not identify or correct them promptly or at all, which may have an adverse impact on the Fund and its </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">shareholders. Unusual market conditions or other unforeseen circumstances (such as natural disasters, political </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">unrest or war) may impact the Index Provider or a third-party data provider and could cause the Index Provider to </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">postpone a scheduled rebalance. This could cause the Underlying Index to vary from its normal or expected </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">composition.</span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Small and Mid-Capitalization Company Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Companies with small or mid-size market capitalizations will </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">normally have more limited product lines, markets and financial resources and will be dependent upon a more </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">limited management group than larger capitalized companies. In addition, it is more difficult to get information on </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">smaller companies, which tend to be less well known, have shorter operating histories, do not have significant </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">ownership by large investors and are followed by relatively few securities analysts.</span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Tracking Error Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The Fund may be subject to tracking error, which is the divergence of the Fund’s </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">performance from that of the Underlying Index. Tracking error may occur because of differences between the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities and other instruments held in the Fund’s portfolio and those included in the Underlying Index, pricing </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">differences (including, as applicable, differences between a security’s price at the local market close and the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Fund’s valuation of a security at the time of calculation of the Fund’s net asset value), differences in transaction </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">costs, the Fund’s holding of uninvested cash, differences in timing of the accrual of or the valuation of dividends or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">other distributions, interest, the requirements to maintain pass-through tax treatment, portfolio transactions carried </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">out to minimize the distribution of capital gains to shareholders, acceptance of custom baskets, changes to the </span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div style="line-height: 10.695pt; margin-left: 12pt; text-align: left;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Underlying Index and the cost to the Fund of complying with various new or existing regulatory requirements. These </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">risks may be heightened during times of increased market volatility or other unusual market conditions. In addition, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">tracking error may result because the Fund incurs fees and expenses, while the Underlying Index does not.</span></div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Asset Class Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — The securities and other assets in the Underlying Index or in the Fund’s portfolio may </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">underperform in comparison to the financial markets generally, a particular financial market, another index, or other </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">asset classes.</span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.0pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Concentration Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">—</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> The Fund reserves the right to concentrate its investments (i.e., invest 25% or more of its </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">total assets in securities of issuers in a particular industry) to approximately the same extent that the Underlying </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Index concentrates in a particular industry. To the extent the Fund concentrates in a particular industry, it may be </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">more susceptible to economic conditions and risks affecting that industry.</span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.0pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Consumer Discretionary Sector Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">—</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> The consumer discretionary sector may be affected by changes in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">domestic and international economies, exchange and interest rates, supply chains, competition, consumers’ </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">disposable income, consumer preferences, social trends and marketing campaigns.</span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Healthcare Sector Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The profitability of companies in the healthcare sector may be affected by government </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">regulations and government healthcare programs, increases or decreases in the cost of medical products and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">services, an increased emphasis on outpatient services, demand for medical products and services and product </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">liability claims, among other factors. Many healthcare companies are heavily dependent on patent protection, and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the expiration of a company’s patent may adversely affect that company’s profitability. Healthcare companies are </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">subject to competitive forces that may result in price discounting, and may be thinly capitalized and susceptible to </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">product obsolescence.</span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Industrials Sector Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Companies in the industrials sector may be adversely affected by changes in the supply </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">of and demand for products and services, product obsolescence, claims for environmental damage or product </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">liability and changes in general economic conditions, among other factors.</span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.0pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Issuer Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Fund performance depends on the performance of individual securities to which the Fund has </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">exposure. Changes in the financial condition or credit rating of an issuer of those securities may cause the value of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the securities to decline.</span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Management Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — The Fund is not actively managed, and BlackRock generally does not attempt to take </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">defensive positions under any market conditions, including declining markets. As the Fund will not fully replicate the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Underlying Index and may hold securities or other assets not included in the Underlying Index, it is subject to the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">risk that the investment strategy of BlackRock may not produce the intended results. There is no guarantee that the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Fund’s investment results will have a high degree of correlation to those of the Underlying Index or that the Fund will </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">achieve its investment objective.</span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Market Risk and Selection Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Market risk is the risk that one or more markets in which the Fund invests will </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">go down in value, including the possibility that the markets will go down sharply and unpredictably. The value of a </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">security or other asset may decline due to changes in general market conditions, economic trends or events that </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">are not specifically related to the issuer of the security or other asset, or factors that affect a particular issuer or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">issuers, exchange, country, group of countries, region, market, industry, group of industries, sector or asset class. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">issues like pandemics or epidemics, recessions, or other events could have a significant impact on the Fund and its </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investments. Selection risk is the risk that the securities selected by Fund management will underperform the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">markets, the relevant indices or the securities selected by other funds with similar investment objectives and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investment strategies. This means you may lose money.</span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">An outbreak of an infectious coronavirus (COVID-19) that was first detected in December 2019 developed into a </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">global pandemic that has resulted in numerous disruptions in the market and has had significant economic impact </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">leaving general concern and uncertainty. Although vaccines have been developed and approved for use by various </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">governments, the duration of the pandemic and its effects cannot be predicted with certainty. The impact of this </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">coronavirus, and other epidemics and pandemics that may arise in the future, could affect the economies of many </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">nations, individual companies and the market in general ways that cannot necessarily be foreseen at the present </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">time.</span></div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Passive Investment Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">—</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Because BlackRock does not select individual companies in the index that the Fund </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">tracks, the Fund may hold securities of companies that present risks that an investment adviser researching </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">individual securities might seek to avoid.</span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Risk of Investing in the United States </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">—</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Certain changes in the U.S. economy, such as when the U.S. economy </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">weakens or when its financial markets decline, may have an adverse effect on the securities to which the Fund has </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">exposure.</span></div> </div> <div style="clear: both; position: relative;"></div> </div> Performance Information <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The information shows you how the performance of the Fund has varied since inception and provides some indication </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">of the risks of investing in the Fund. The table compares the Fund’s performance to that of the Russell 3000</span><span style="color: #000000; font-family: arial; font-size: 5pt; position: relative; top: -3.25pt;">® </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Index </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and the Russell 2500™ Index. The Russell 2500</span><span style="color: #000000; font-family: arial; font-size: 5pt; position: relative; top: -3.25pt;">TM</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Index is relevant to the Fund because it has characteristics similar </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">to the Fund’s investment strategy. To the extent that dividends and distributions have been paid by the Fund, the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">performance information for the Fund in the chart and table assumes reinvestment of the dividends and distributions. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">As with all such investments, past performance (before and after taxes) is not an indication of future results. The table </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">includes all applicable fees. If BlackRock and its affiliates had not waived or reimbursed certain Fund expenses during </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">these periods, the Fund’s returns would have been lower. Updated information on the Fund’s performance, including </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">its current net asset value, can be obtained by visiting www.blackrock.com or can be obtained by phone at </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">(800) 882-0052</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">.</span></div> The information shows you how the performance of the Fund has varied since inception and provides some indication of the risks of investing in the Fund. As with all such investments, past performance (before and after taxes) is not an indication of future results. www.blackrock.com (800) 882-0052 Investor A Shares ANNUAL TOTAL RETURNS iShares Russell Small/Mid-Cap Index Fund As of 12/31 <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">During the periods shown in the bar chart, the highest return for a quarter was 27.31% (quarter ended </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">December 31, 2020) and the lowest return for a quarter was -29.51% (quarter ended March 31, 2020). The year-to-date return as of September 30, 2024 was 11.17%.</span><span style="color: #000000; font-family: arial; font-size: 1pt; line-height: 0.93pt;"> </span></div> highest return 0.2731 2020-12-31 lowest return -0.2951 2020-03-31 year-to-date return 2024-09-30 0.1117 For the periods ended 12/31/23 Average Annual Total Returns 2015-08-13 2015-08-13 2015-08-13 2015-08-13 0.1680 0.1134 0.0848 0.1640 0.1028 0.0753 0.1009 0.0880 0.0656 0.1714 0.1160 0.0873 0.2596 0.1516 0.1190 0.1742 0.1167 0.0877 <div style="margin-top: 12pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">reflect the impact of state and local taxes. Actual after-tax returns depend on the investor’s tax situation and may </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">differ from those shown, and the after-tax returns shown are not relevant to investors who hold their shares through </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Investor A Shares only, and the after-tax returns for Institutional Shares will vary.</span></div> After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on the investor’s tax situation and may differ from those shown, and the after-tax returns shown are not relevant to investors who hold their shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Investor A Shares only, and the after-tax returns for Institutional Shares will vary. Fund Overview Key Facts About iShares Russell Small/Mid-Cap Index Fund Investment Objective <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The investment objective of iShares Russell Small/Mid-Cap Index Fund (the “Fund”), a series of BlackRock Funds</span><span style="color: #000000; font-family: arial; font-size: 5pt; position: relative; top: -3.25pt;">SM</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">(the “Trust”), is to seek to track the performance of the small to mid-cap segment of the U.S. equity universe.</span></div> Fees and Expenses of the Fund <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">This table describes the fees and expenses that you may pay if you buy, hold and sell Class K Shares of the Fund. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">You </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">may pay other fees, such as brokerage commissions and other fees to your financial professional or your selected </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">securities dealer, broker, investment adviser, service provider or industry professional (including BlackRock </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">Advisors, LLC (</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">“</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">BlackRock</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">”</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">) and its affiliates) (each, a </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">“</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">Financial Intermediary</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">”</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">), which are not reflected in the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">table and example below.</span><span style="color: #000000; font-family: arial; font-size: 1pt; line-height: 0.93pt;"> </span></div> Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0003 0 0.0007 0.0006 0.0001 0.0010 -0.0002 0.0008 June 30, 2026 Example: <div style="line-height: 10.695pt; text-align: left;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">This Example is intended to help you compare the cost of investing in shares of the Fund with the cost of investing in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">other mutual funds. The Example assumes that you invest $10,000 in shares of the Fund for the time periods </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investment has a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">costs may be higher or lower, based on these assumptions your costs would be:</span><span style="color: #000000; font-family: arial; font-size: 1pt; line-height: 0.93pt;"> </span></div> 8 30 54 126 Portfolio Turnover: <div style="line-height: 10.695pt; text-align: left;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the </span></div> <div style="line-height: 10.695pt; text-align: left;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">43</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">% of the average value of its portfolio.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> 0.43 Principal Investment Strategies of the Fund <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund seeks to track the investment results of the Russell 2500</span><span style="color: #000000; font-family: arial; font-size: 5pt; position: relative; top: -3.25pt;">TM</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Index (the “Underlying Index”), which measures </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the performance of the small to mid-cap segment of the U.S. equity universe, commonly referred to as “smid” cap. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Underlying Index is a subset of the Russell 3000</span><span style="color: #000000; font-family: arial; font-size: 5pt; position: relative; top: -3.25pt;">®</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Index. It includes approximately 2500 of the smallest securities </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">based on a combination of their market cap and current index membership. Components primarily include industrials, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">financials, consumer discretionary and health care companies. The components of the Underlying Index, and the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">degree to which these components represent certain industries, may change over time.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">BlackRock uses a representative sampling indexing strategy to manage the Fund. “Representative sampling” is an </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">indexing strategy that involves investing in a representative sample of securities that collectively has an investment </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">profile similar to that of the Underlying Index. The securities selected are expected to have, in the aggregate, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investment characteristics (based on factors such as market capitalization and industry weightings), fundamental </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">characteristics (such as return variability and yield) and liquidity measures similar to those of the Underlying Index. The </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Fund may or may not hold all of the securities in the Underlying Index.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund generally invests at least 90% of its assets, plus the amount of any borrowing for investment purposes, in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities of the Underlying Index.</span></div> Principal Risks of Investing in the Fund You may lose part or all of your investment in the Fund or your investment may not perform as well as other similar investments. <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Equity Securities Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Stock markets are volatile. The price of equity securities fluctuates based on changes in a </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">company’s financial condition and overall market and economic conditions.</span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Index-Related Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — The index provider may rely on various sources of information to assess the criteria of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">components of the Underlying Index, including information that may be based on assumptions and estimates. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Neither the Fund nor BlackRock can offer assurances that the index provider’s methodology or sources of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">information will provide an accurate assessment of included components. Errors in index data, index computations </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">or the construction of the Underlying Index in accordance with its methodology may occur, and the index provider </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">may not identify or correct them promptly or at all, which may have an adverse impact on the Fund and its </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">shareholders. Unusual market conditions or other unforeseen circumstances (such as natural disasters, political </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">unrest or war) may impact the Index Provider or a third-party data provider and could cause the Index Provider to </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">postpone a scheduled rebalance. This could cause the Underlying Index to vary from its normal or expected </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">composition.</span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Small and Mid-Capitalization Company Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Companies with small or mid-size market capitalizations will </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">normally have more limited product lines, markets and financial resources and will be dependent upon a more </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">limited management group than larger capitalized companies. In addition, it is more difficult to get information on </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">smaller companies, which tend to be less well known, have shorter operating histories, do not have significant </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">ownership by large investors and are followed by relatively few securities analysts.</span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Tracking Error Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The Fund may be subject to tracking error, which is the divergence of the Fund’s </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">performance from that of the Underlying Index. Tracking error may occur because of differences between the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities and other instruments held in the Fund’s portfolio and those included in the Underlying Index, pricing </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">differences (including, as applicable, differences between a security’s price at the local market close and the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Fund’s valuation of a security at the time of calculation of the Fund’s net asset value), differences in transaction </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">costs, the Fund’s holding of uninvested cash, differences in timing of the accrual of or the valuation of dividends or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">other distributions, interest, the requirements to maintain pass-through tax treatment, portfolio transactions carried </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">out to minimize the distribution of capital gains to shareholders, acceptance of custom baskets, changes to the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Underlying Index and the cost to the Fund of complying with various new or existing regulatory requirements. These </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">risks may be heightened during times of increased market volatility or other unusual market conditions. In addition, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">tracking error may result because the Fund incurs fees and expenses, while the Underlying Index does not.</span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div> <div style="clear: both; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Asset Class Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — The securities and other assets in the Underlying Index or in the Fund’s portfolio may </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">underperform in comparison to the financial markets generally, a particular financial market, another index, or other </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">asset classes.</span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.0pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Concentration Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">—</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> The Fund reserves the right to concentrate its investments (i.e., invest 25% or more of its </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">total assets in securities of issuers in a particular industry) to approximately the same extent that the Underlying </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Index concentrates in a particular industry. To the extent the Fund concentrates in a particular industry, it may be </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">more susceptible to economic conditions and risks affecting that industry.</span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.0pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Consumer Discretionary Sector Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">—</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> The consumer discretionary sector may be affected by changes in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">domestic and international economies, exchange and interest rates, supply chains, competition, consumers’ </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">disposable income, consumer preferences, social trends and marketing campaigns.</span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Healthcare Sector Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The profitability of companies in the healthcare sector may be affected by government </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">regulations and government healthcare programs, increases or decreases in the cost of medical products and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">services, an increased emphasis on outpatient services, demand for medical products and services and product </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">liability claims, among other factors. Many healthcare companies are heavily dependent on patent protection, and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the expiration of a company’s patent may adversely affect that company’s profitability. Healthcare companies are </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">subject to competitive forces that may result in price discounting, and may be thinly capitalized and susceptible to </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">product obsolescence.</span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Industrials Sector Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Companies in the industrials sector may be adversely affected by changes in the supply </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">of and demand for products and services, product obsolescence, claims for environmental damage or product </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">liability and changes in general economic conditions, among other factors.</span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.0pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Issuer Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Fund performance depends on the performance of individual securities to which the Fund has </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">exposure. Changes in the financial condition or credit rating of an issuer of those securities may cause the value of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the securities to decline.</span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Management Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — The Fund is not actively managed, and BlackRock generally does not attempt to take </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">defensive positions under any market conditions, including declining markets. As the Fund will not fully replicate the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Underlying Index and may hold securities or other assets not included in the Underlying Index, it is subject to the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">risk that the investment strategy of BlackRock may not produce the intended results. There is no guarantee that the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Fund’s investment results will have a high degree of correlation to those of the Underlying Index or that the Fund will </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">achieve its investment objective.</span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Market Risk and Selection Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Market risk is the risk that one or more markets in which the Fund invests will </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">go down in value, including the possibility that the markets will go down sharply and unpredictably. The value of a </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">security or other asset may decline due to changes in general market conditions, economic trends or events that </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">are not specifically related to the issuer of the security or other asset, or factors that affect a particular issuer or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">issuers, exchange, country, group of countries, region, market, industry, group of industries, sector or asset class. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">issues like pandemics or epidemics, recessions, or other events could have a significant impact on the Fund and its </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investments. Selection risk is the risk that the securities selected by Fund management will underperform the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">markets, the relevant indices or the securities selected by other funds with similar investment objectives and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investment strategies. This means you may lose money.</span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">An outbreak of an infectious coronavirus (COVID-19) that was first detected in December 2019 developed into a </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">global pandemic that has resulted in numerous disruptions in the market and has had significant economic impact </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">leaving general concern and uncertainty. Although vaccines have been developed and approved for use by various </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">governments, the duration of the pandemic and its effects cannot be predicted with certainty. The impact of this </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">coronavirus, and other epidemics and pandemics that may arise in the future, could affect the economies of many </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">nations, individual companies and the market in general ways that cannot necessarily be foreseen at the present </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">time.</span></div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Passive Investment Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">—</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Because BlackRock does not select individual companies in the index that the Fund </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">tracks, the Fund may hold securities of companies that present risks that an investment adviser researching </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">individual securities might seek to avoid.</span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Risk of Investing in the United States </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">—</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Certain changes in the U.S. economy, such as when the U.S. economy </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">weakens or when its financial markets decline, may have an adverse effect on the securities to which the Fund has </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">exposure.</span></div> </div> <div style="clear: both; position: relative;"></div> </div> Performance Information <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The information shows you how the performance of the Fund has varied since inception and provides some indication </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">of the risks of investing in the Fund. The table compares the Fund’s performance to that of the Russell 3000</span><span style="color: #000000; font-family: arial; font-size: 5pt; position: relative; top: -3.25pt;">® </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Index </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and the Russell 2500™ Index. The Russell 2500</span><span style="color: #000000; font-family: arial; font-size: 5pt; position: relative; top: -3.25pt;">TM</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Index is relevant to the Fund because it has characteristics similar </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">to the Fund’s investment strategy. To the extent that dividends and distributions have been paid by the Fund, the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">performance information for the Fund in the chart and table assumes reinvestment of the dividends and distributions. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">As with all such investments, past performance (before and after taxes) is not an indication of future results. The table </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">includes all applicable fees. If BlackRock and its affiliates had not waived or reimbursed certain Fund expenses during </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">these periods, the Fund’s returns would have been lower. Updated information on the Fund’s performance, including </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">its current net asset value, can be obtained by visiting www.blackrock.com or can be obtained by phone at </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">(800) 882-0052</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">.</span></div> The information shows you how the performance of the Fund has varied since inception and provides some indication of the risks of investing in the Fund. As with all such investments, past performance (before and after taxes) is not an indication of future results. www.blackrock.com (800) 882-0052 Class K Shares ANNUAL TOTAL RETURNS iShares Russell Small/Mid-Cap Index Fund As of 12/31 <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">During the periods shown in the bar chart, the highest return for a quarter was 27.32% (quarter ended </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">December 31, 2020) and the lowest return for a quarter was -29.47% (quarter ended March 31, 2020). The year-to-date return as of September 30, 2024 was 11.38%.</span><span style="color: #000000; font-family: arial; font-size: 1pt; line-height: 0.93pt;"> </span></div> highest return 0.2732 2020-12-31 lowest return -0.2947 2020-03-31 year-to-date return 2024-09-30 0.1138 For the periods ended 12/31/23 Average Annual Total Returns 2015-08-13 2015-08-13 2015-08-13 0.1719 0.1165 0.0878 0.1670 0.1049 0.0774 0.1037 0.0902 0.0677 0.2596 0.1516 0.1190 0.1742 0.1167 0.0877 <div style="margin-top: 12pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">reflect the impact of state and local taxes. Actual after-tax returns depend on the investor’s tax situation and may </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">differ from those shown, and the after-tax returns shown are not relevant to investors who hold their shares through </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">tax-deferred arrangements, such as 401(k) plans or individual retirement accounts.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on the investor’s tax situation and may differ from those shown, and the after-tax returns shown are not relevant to investors who hold their shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. As described in the “Management of the Fund” section of the Fund’s prospectus beginning on page 31, BlackRock has contractually agreed to waive the management fee with respect to any portion of the Fund’s assets estimated to be attributable to investments in other equity and fixed-income mutual funds and exchange-traded funds (“ETFs”) managed by BlackRock or its affiliates that have a contractual management fee, through June 30, 2026. In addition, BlackRock has contractually agreed to waive its management fees by the amount of investment advisory fees the Fund pays to BlackRock indirectly through its investment in money market funds managed by BlackRock or its affiliates, through June 30, 2026. The contractual agreements may be terminated upon 90 days’ notice by a majority of the non-interested trustees of the Trust or by a vote of a majority of the outstanding voting securities of the Fund. As described in the “Management of the Fund” section of the Fund’s prospectus beginning on page 31, BlackRock has contractually agreed to waive and/or reimburse fees or expenses in order to limit Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements (excluding Dividend Expense, Interest Expense, Acquired Fund Fees and Expenses and certain other Fund expenses) to 0.37% (for Investor A Shares) and 0.12% (for Institutional Shares) of average daily net assets through June 30, 2026. The contractual agreement may be terminated upon 90 days’ notice by a majority of the non-interested trustees of the Trust or by a vote of a majority of the outstanding voting securities of the Fund. The Fund has added this broad-based index in response to new regulatory requirements. As described in the “Management of the Fund” section of the Fund’s prospectus beginning on page 25, BlackRock has contractually agreed to waive the management fee with respect to any portion of the Fund’s assets estimated to be attributable to investments in other equity and fixed-income mutual funds and exchange-traded funds (“ETFs”) managed by BlackRock or its affiliates that have a contractual management fee, through June 30, 2026. In addition, BlackRock has contractually agreed to waive its management fees by the amount of investment advisory fees the Fund pays to BlackRock indirectly through its investment in money market funds managed by BlackRock or its affiliates, through June 30, 2026. The contractual agreements may be terminated upon 90 days’ notice by a majority of the non-interested trustees of the Trust or by a vote of a majority of the outstanding voting securities of the Fund. As described in the “Management of the Fund” section of the Fund’s prospectus beginning on page 25, BlackRock has contractually agreed to waive and/or reimburse fees or expenses in order to limit Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements (excluding Dividend Expense, Interest Expense, Acquired Fund Fees and Expenses and certain other Fund expenses) to 0.07% of average daily net assets through June 30, 2026. The contractual agreement may be terminated upon 90 days’ notice by a majority of the non-interested trustees of the Trust or by a vote of a majority of the outstanding voting securities of the Fund. The Fund has added this broad-based index in response to new regulatory requirements.