On the first day of Succot, one recites two Berachot over the Misva of Arba Minim: 1) "Asher Kideshanu Be’misvotav Ve’sivanu Al Netilat Lulab"; 2) "Shehehiyanu." On the other days of Succot, one recites only the Beracha of "Al Netilat Lulab."
The Halachic authorities address the question of when precisely one should recite the Beracha (or Berachot) over the Arba Minim. Once a person takes hold of the Lulab and Etrog, he fulfills the Misva – as he performs the "Netila" – and he thus can no longer recite the Beracha. Therefore, the Shulhan Aruch (651:5) writes that one should first lift the Lulab, without the Etrog, recite the Beracha (or Berachot, on the first day), and then take the Etrog. Since one does not fulfill the Misva before he takes all four species, he should leave the Etrog in the box, with the box open, and recite the Beracha holding only the Lulab. He should then take the Etrog immediately after reciting the Beracha.
The Mishna Berura (Rabbi Yisrael Meir Kagan of Radin, 1839-1933) proposes a different solution. He writes that one should take all four species, but hold the Etrog upside-down. One does not fulfill the Misva unless he holds all four species right-side-up, and therefore one can still recite the Beracha as long as the Etrog is upside-down. Immediately after reciting the Beracha, he should then turn the Etrog around, fulfilling the Misva.
Yet a third suggestion was offered by the Vilna Gaon (Rabbi Eliyahu of Vilna, 1720-1797). The Gaon noted that one does not fulfill a Misva if he performs the act with the specific intent not to fulfill the obligation. One can fulfill the Misva by performing the required act with the intention to fulfill the obligation or even with neutral intention, but not if he has special intent for the Misva not to be fulfilled. Therefore, the Gaon suggested that one could lift both the Lulab and Etrog normally, with the intention that he does not wish to fulfill the Misva until after he recites the Beracha. He should recite the Beracha, and then proceed with the Na’anu’im (waving). Since he specifically intends not to fulfill the Misva before reciting the Beracha, the Beracha is recited before the obligation is fulfilled.
Summary: Three different options exist for reciting the Beracha over the Arba Minim (or the two Berachot, on the first day of Succot):
1) One can lift the Lulab, recite the Beracha (or Berachot), and then lift the Etrog;
2) One can lift the Lulab and Etrog but hold the Etrog upside-down until after he recites the Beracha or (Berachot);
3) One can lift both the Lulab and Etrog normally with the intention not to fulfill the Misva until after reciting the Beracha (or Berachot).
