-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, OC1TTtJes8ZDWBWd4g8tfFCkCxYQtPGvHbN0cNf6moSyI6P2lYn1gzPDzG/+CRSn vUKrWREI1fsGa9yLTLc/eA== 0000927016-01-501302.txt : 20010605 0000927016-01-501302.hdr.sgml : 20010605 ACCESSION NUMBER: 0000927016-01-501302 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20010331 FILED AS OF DATE: 20010604 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ISHARES TRUST CENTRAL INDEX KEY: 0001100663 STANDARD INDUSTRIAL CLASSIFICATION: [] IRS NUMBER: 943351276 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 001-15897 FILM NUMBER: 1653482 BUSINESS ADDRESS: STREET 1: 45 FREMONT STREET CITY: SAN FRANCISCO STATE: CA ZIP: 94105 N-30D 1 dn30d.txt S&P ANNUAL REPORT 03/31/2001 - I SHARES iShares S&P Series iShares Nasdaq Series ANNUAL REPORT March 31, 2001 i Shares The way you invest now. BARCLAYS GLOBAL INVESTORS Only better. TABLE OF CONTENTS Shareholder Letter............................................... 1 Market Overview.................................................. 2 Managers' Discussion & Analysis.................................. 4 Schedules of Investments......................................... 22 iShares S&P 100 Index Fund.................................... 22 iShares S&P 500 Index Fund.................................... 24 iShares S&P 500/BARRA Growth Index Fund....................... 31 iShares S&P 500/BARRA Value Index Fund........................ 33 iShares S&P MidCap 400 Index Fund............................. 38 iShares S&P MidCap 400/BARRA Growth Index Fund................ 43 iShares S&P MidCap 400/BARRA Value Index Fund................. 45 iShares S&P SmallCap 600 Index Fund........................... 49 iShares S&P SmallCap 600/BARRA Growth Index Fund.............. 56 iShares S&P SmallCap 600/BARRA Value Index Fund............... 59 iShares S&P Global 100 Index Fund............................. 64 iShares S&P Europe 350 Index Fund............................. 67 iShares S&P/TSE 60 Index Fund................................. 72 iShares Nasdaq Biotechnology Index Fund....................... 73 Financial Statements............................................. 74 Financial Highlights............................................. 83 Notes to the Financial Statements................................ 86 Report of Independent Accountants................................ 94 Tax Information (Unaudited)...................................... 95 Supplemental Information (Unaudited)............................. 96 TO OUR SHAREHOLDERS The iShares Funds' annual period ended March 31, 2001 was one of continued market volatility. Significant events during this period include: - - The Federal Reserve Board (the "Fed") raised rates 0.50% at its May 16, 2000 meeting. This increase was the sixth in 12 months and brought the Federal Funds rate to 6.5%. - - The Fed subsequently lowered rates three times in the first three months of 2001. Its first cut, on January 3, 2001, surprised markets by occurring outside of a regularly scheduled meeting of the Federal Open Market Committee (FOMC). - - The price of crude oil rose to $37.20 a barrel, the highest level since November of 1990. - - The euro sank to a 21-month low since its introduction in January 1999. - - For the first time in modern history, the U.S. presidential election failed to produce a clear winner for more than a month. - - The Nasdaq experienced its worst first quarter performance in history, and the S&P 500 Index experienced its worst first quarter in 23 years. - - Three new iShares Funds were launched during the period: the S&P 100 Index Fund on October 23, 2000, the S&P Global 100 Index Fund on December 5, 2000, and the Nasdaq Biotechnology Fund on February 5, 2001. As you read through this report and review the performance of the funds in your portfolio, we encourage you to keep long-term goals in mind when making investment decisions. While one fund's recent performance may be better than another's, it is important to remember that past performance is no guarantee of future results. Even as market conditions change, you should maintain your investment strategy as long as it remains appropriate for your short- or long-term objectives. One trait many successful investors share is the ability to stay focused on their personal financial goals and fundamental long-term market opinions, while ignoring temporary market swings. We trust that the Funds are fulfilling your expectations as a simple, cost-effective way for you to invest in your future, and will continue to do so. We also encourage you to consider the appropriateness of other iShares Funds as part of your long-term investment program. iShares Funds offer investors a wide range of indexed investment choices based on market capitalization, investment style, and sector exposure. We appreciate your confidence and look forward to helping you meet your investment goals. iSHARES FUNDS MAY 2001 - -------------------------------------------------------------------------------- iSHARES SHAREHOLDER LETTER PAGE 1 MARKET OVERVIEW Domestic Markets After a bumpy ride, U.S. equity markets delivered poor results for the one year period ended March 31, 2001. Large-capitalization stocks were hardest hit during the year: The S&P 500 Index declined 21.12% for the period. Mid-capitalization stocks, as measured by the S&P MidCap 400 Index, lost 2.89%. On a relative basis, small-capitalization stocks fared the best, declining a modest 0.03% as measured by the S&P 600 Index over the same period. Value stocks overwhelmingly outperformed growth stocks across all indices during the year. The S&P 500/BARRA Value Index declined a slight 0.39%, and the S&P 600/BARRA Value Index gained 17.67%. By contrast, the S&P 500/BARRA Growth Index lost 37.74%, and the S&P 600/BARRA Growth Index declined 18.18%. Interest rate concerns dominated many investors' attention at the beginning of the period. On May 16, 2000, the Federal Reserve Board (the "Fed") instituted its sixth interest rate hike in 12 months, amid continued signs of an overheated economy. However, as the year unfolded and the economic landscape moved from an inflationary environment to one of sluggish growth, this would prove to be the last interest rate increase for the period. During the course of the year, many investors' worries went from fears of an economy that was growing too rapidly to fears of one that was growing too slowly, and the Fed reversed its stance from raising interest rates in an effort to stem inflation to cutting rates in an effort to stimulate growth. By the end of May, economic figures began to reveal signs of a slowing economy. Lower durable goods orders and new home sales suggested that the economy might be approaching the Fed's desired "soft landing," and the Fed chose to leave rates unchanged at its June meeting. August brought more encouraging economic reports: U.S. factory orders (excluding transportation equipment) had fallen 4.8% in July, compared with a 0.5% increase in June. As the summer progressed, economic data continued to point to a slowing economy. A record drop in durable goods orders and an increase in jobless claims in July suggested that the demand for workers and goods was slowing enough to relieve inflationary pressures. The positive data led to another pause in Fed tightening, and markets welcomed the news with a strong rally in late August. With concerns about inflation apparently behind them, investors began to focus on new areas for worry. The price of crude oil, which had been climbing during the year, reached a 10-year high in September. At the same time, the euro dipped to an all-time low since its introduction in January 1999. Many investors' concerns about the impact that these factors would have on corporate earnings were realized as industry leaders announced that they would fail to meet earnings expectations. During the fourth quarter of 2000, investors began to shift from growth stocks, particularly technology companies, to shares of more value-oriented stocks. By December 2000, worries that the economy was heading for a recession began to mount. Economic news suggested that the economy's growth rate had slowed from 5% in the first half of the year to less than 2.5% in the second half. In January, consumer confidence, marked as "the critical factor" by Federal Reserve Chairman Alan Greenspan, plunged to its lowest level in four years. In response, the Fed cut rates twice during the month of January, by a total of one percent. Markets welcomed the Fed's actions with a rally, but resumed their decline in February when a new wave of earnings disappointments and profit warnings emerged. Announcements of job cuts helped to drive markets lower through the quarter. In March, the Fed lowered rates an additional 0.50%. Investors, however, responded negatively to the 0.50% cut, hoping for a more aggressive 0.75% cut. Markets reflected the poor investor sentiment during the quarter: the S&P 500 Index logged its worst first quarter in 23 years. International Markets Many of the same concerns that affected the U.S. markets also impacted the international ones. Volatility, too, was a common theme. As the reporting period began, the international markets were generally weak. Like in the U.S., investors abroad remained concerned about the possibility that central banks would raise interest rates substantially to ward off inflation. As a result, shares in "new economy" sectors such as telecommunications and technology generally declined. Stocks traditionally considered defensive, such as the value-oriented "old economy" companies in the utilities and financial sectors, took the lead. This trend would continue for the remainder of the period. - -------------------------------------------------------------------------------- PAGE 2 iSHARES Not surprisingly, countries whose markets are dominated by technology and telecommunications companies, such as Sweden and Finland with companies like Ericsson and Nokia, were the hardest hit by the decline. But they were not alone; U.K. and German markets were also dragged down by their telecommunications sectors. Besides concerns about potentially higher interest rates, these markets were further impacted by the unexpectedly high prices paid at auction for third-generation wireless licenses. As a result of the near-term uncertainty, telecommunications stocks remained weak through the rest of the reporting period. The concurrent downturn in technology stocks affected almost every international market, though some were harder hit than others. The stock exchanges of export-oriented economies such as South Korea and Taiwan, for example, posted severe losses in July, August and September. The weakness of the euro relative to the U.S. dollar was another strike against Asian exporters. Meanwhile, Latin American markets held up relatively well; oil exporter Mexico, for example, was buoyed by higher crude oil prices. During September, a new market consensus appeared to emerge. Many investors disregarded the possibility of higher interest rates and instead focused on the potential for a significant slowdown in global economic growth. In this environment, stocks in the utilities and financial-services industries continued to outperform, while those in the technology and telecommunications areas fell further behind. International markets responded positively to the Fed's cuts in U.S. interest rates in January, although to a lesser degree than domestic markets. Similarly, international stocks participated in the February decline experienced by U.S. equities, falling a relatively muted 7.5% for the month, as measured by the MSCI EAFE Index. The European currency, which made its debut in January 1999, drifted lower through most of the year. As it approached its low of $0.83 compared with the U.S. Dollar, central banks around the world intervened, buying euros in an attempt to stabilize the currency. By the end of October, the currency rebounded, finishing the period at $0.884 compared with the U.S. Dollar. - -------------------------------------------------------------------------------- iSHARES MARKET OVERVIEW PAGE 3 MANAGERS' DISCUSSION & ANALYSIS iSHARES S&P 100 INDEX FUND PERFORMANCE AS OF 3/31/01 - -------------------------------------------------------------------------------- TOTAL RETURNS - -------------------------------------------------------------------------------- INCEPTION TO MARCH 31, 2001 ------------------------------------ FUND INCEPTION DATE INDEX MARKET* NAV** ---- -------------- -------- ------------- ------------ iShares S&P 100 Index Fund 10/23/00 (19.03)% (18.51)% (19.07)% - -------------------------------------------------------------------------------- * Calculated based on the Fund's Market Price from the Fund's first day of trading on the exchange (10/27/00) ** Calculated based on the Fund's Net Asset Value (NAV) Total returns represent the iShares Fund's change in value during the periods noted above. The Market and NAV returns assume that dividends and capital gains distributions have been reinvested in the Fund at market price and net asset value, respectively. Market price returns do not include brokers' commissions. If brokerage commissions were included, market returns would be lower. The Fund's past performance is no guarantee of future results. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. SECTOR BREAKOUT --------------- [GRAPH] S&P 100 INDEX Consumer Discretionary 14.52% Consumer Staples 6.65% Energy 5.92% Financials 16.70% Health Care 15.07% Industrials 12.26% Information Technology 19.20% Materials 2.30% Telecomm Services 4.08% Utilities 3.30% Large capitalization stocks, as measured by the S&P 100 Index witnessed a weak economic environment and significant market volatility during the period from October 23, 2000 through March 31, 2001. The iSHARES S&P 100 INDEX FUND, launched on October 23, 2000, seeks to track the S&P 100 Index. For the period October 23, 2000 through March 31, 2001 (the "reporting period"), the Index declined 19.03%. The Fund's launch came in the midst of downward corporate earnings revisions and weak economic indicators. Many companies released earnings warnings in October and November, confirming investor concerns about the sustainability of corporate earnings in a slowing economy. Although many companies delivered weak earnings estimates, the bulk came from technology companies, resulting in a sharp decline in that sector. As the period progressed, other factors compounded investor concerns. In October, tension in the Middle East led to rising oil prices. In November, uncertainty about the outcome of the U.S. presidential election provided further instability to markets. December brought additional worries in the form of sluggish holiday sales. - -------------------------------------------------------------------------------- PAGE 4 iSHARES Throughout the first three months of 2001, technology leaders reported lower-than-expected earnings numbers and announced layoffs at a brisk pace. Weak fourth quarter economic data, including GDP and housing starts figures, contributed to the bleak outlook. Despite the Federal Reserve Board's (the "Fed's") efforts to stimulate the economy with a series of interest cuts, markets languished through the remainder of the period. Within the Index, performance was split. Growth-oriented industries, like technology, performed poorly, while more defensive value-oriented stocks, like energy and financial services stocks, posted relatively strong returns. The Index's weighting in financial services stocks (16.70% of holdings as of March 31, 2001) and energy stocks (5.92% as of March 31, 2001) helped mitigate some of the losses sustained in other sectors. Top ten Index holdings Exxon Mobil Corp. and Citigroup contributed positively to Index performance. On an absolute basis, the Index benefited from positions in Alcoa, which returned 49.79% and U.S. Bancorp, which gained 34.01% for the year. The Index weighting in technology (19.20%), on the other hand, detracted from performance. Number two holding, as of March 31, 2001, Microsoft hindered performance. On an absolute basis, the worst performers came largely from the technology sector. Intel (-39.25%), Lucent (-54.81%), Cisco (-71.70%) and Nortel (-79.01%) all posted significant losses and dragged down Index performance during the period. [GRAPH] iSHARES S&P 100 INDEX FUND GROWTH OF $10,000 INVESTMENT ISHARES S&P 100 S&P 100 INDEX FUND INDEX $10,000 $10,000 Oct-00 $10,226 $10,227 Nov-00 $9,507 $9,509 Dec-00 $9,369 $9,368 Jan-01 $9,765 $9,767 Feb-01 $8,758 $8,760 Mar-01 $8,093 $8,096 Past performance is no guarantee of future results. - -------------------------------------------------------------------------------- iSHARES MANAGERS' DISCUSSION & ANALYSES PAGE 5 MANAGERS' DISCUSSION & ANALYSIS iSHARES S&P 500 INDEX FUNDS PERFORMANCE AS OF 3/31/01 - -------------------------------------------------------------------------------- TOTAL RETURNS - --------------------------------------------------------------------------------
INCEPTION TO MARCH 31, 2001 --------------------------------- FUND INCEPTION DATE INDEX MARKET* NAV** ---- -------------- -------- ------------ --------- iShares S&P 500 Index Fund 05/15/00 (19.31)% (16.37)% (19.32)% iShares S&P 500/BARRA Growth Index Fund 05/22/00 (30.65)% (29.87)% (30.75)% iShares S&P 500/BARRA Value Index Fund 05/22/00 (0.16)% 1.33% (0.27)%
- -------------------------------------------------------------------------------- * Calculated based on the Fund's Market Price from the Fund's first day of trading on the exchange (05/19/00, 05/26/00 and 05/26/00, respectively) ** Calculated based on the Fund's Net Asset Value (NAV) Total returns represent the iShares Fund's change in value during the periods noted above. The Market and NAV returns assume that dividends and capital gains distributions have been reinvested in the Fund at market price and net asset value, respectively. Market price returns do not include brokers' commissions. If brokerage commissions were included, market returns would be lower. The Fund's past performance is no guarantee of future results. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. SECTOR BREAKOUT --------------- [GRAPH] S&P 500 INDEX Consumer Discretionary 12.70% Consumer Staples 8.20% Energy 6.84% Financials 17.66% Health Care 13.76% Industrials 10.79% Information Technology 17.33% Materials 2.43% Telecomm Services 6.12% Utilities 4.17% [GRAPH] S&P 500/BARRA GROWTH INDEX Consumer Discretionary 13.13% Consumer Staples 12.66% Financials 8.43% Health Care 27% Industrials 11.02% Information Technology 26.72% Telecomm Services 0.60% Utilities 0.44% [GRAPH] S&P 500/BARRA VALUE INDEX Consumer Discretionary 12.34% Consumer Staples 4.41% Energy 12.64% Financials 25.48% Health Care 2.52% Industrials 10.60% Information Technology 9.37% Materials 4.49% Telecomm Services 10.81% Utilities 7.34% The iSHARES S&P 500 INDEX FUND, launched on May 15, 2000, seeks to track the S&P 500 Index. From its inception to March 31, 2001, the Index lost 19.31%. The iSHARES S&P 500/BARRA GROWTH INDEX FUND and the iSHARES S&P 500/BARRA VALUE INDEX FUND, both launched on May 22, 2000, seek to track the growth and value components of the S&P 500 Index as represented by the S&P 500/BARRA Growth Index and the S&P 500/BARRA Value Index, respectively. From May 22, 2000, through March 31, 2001 (the "reporting period"), the S&P 500/BARRA Growth Index declined 30.65%, and the S&P 500/BARRA Value Index lost 0.16%. - -------------------------------------------------------------------------------- PAGE 6 iSHARES Falling prices and a volatile climate characterized the U.S. equity markets at the beginning of the reporting period. In response to signs of an overheated economy, the Federal Reserve Board (the "Fed") raised rates 0.50% at its May 16 meeting. June's economic news indicated a slowing economy, which eased inflation worries and caused stocks to rebound after two months of declines. However, jumps in the Consumer Price Index and Gross Domestic Product renewed fears of inflation in July. These increases, combined with profit warnings from major technology firms, sparked a sell-off in the technology sector. Stocks rallied in August in response to encouraging economic news and growing optimism that interest rates had stabilized. However, September saw stock prices plummet again, as the price of crude oil soared to its highest level since November 1990 and the euro plunged to its lowest level since its introduction in January 1999. Intel issued a profit warning, which triggered a sharp drop in technology stocks. The sell-off spread to the broader market and even some blue chip stalwarts were dragged down. Value sectors, such as financial service and oil stocks, gained as a result of the shift out of techs. U.S. equity markets plunged in the last months of 2000, driven downward by concerns about oil prices, inflation, corporate profit warnings and a possible recession. Uncertainty surrounding the U.S. Presidential election contributed to the pessimistic atmosphere. The Fed's Index of Leading Indicators registered its biggest drop in four years, and its Consumer Sentiment Index sank to its lowest level since June 1996. In response to deteriorating economic conditions, the Fed cut interest rates twice in January 2001, by a total of one percentage point. Markets spiked on the news, but December's weak economic numbers countered the effect of lower rates. A wave of earnings warnings coupled with more poor economic news sent markets reeling in February and March. Analysts described the economy to be in a "profits recession," in which the economy as a whole was growing, but profits were declining. The large underperformance of growth stocks (as measured by the S&P 500/BARRA Growth Index) relative to value stocks (as measured by the S&P 500/BARRA Value Index) was evident in the divergence of sector performance within the Index. Many investors sold off growth-oriented stocks, like technology, and bought value-oriented stocks, like utilities, healthcare and pharmaceuticals and financials during the period. Accordingly, the technology sector, the S&P 500 Index's largest sector as of March 31, 2001, drove the Index down with its 41.0% loss in calendar year 2000 and 25.9% loss in the first quarter of 2001. Top technology holdings, such as Microsoft and Intel, hurt overall S&P 500 Index performance for the period. However, these losses were partially offset by holdings in pharmaceutical company Merck, as well as financial companies Citigroup and American International Group. Oil giant Exxon Mobil fell slightly, losing 1.26% for the period May 22, 2000 through March 31, 2001. On an absolute basis, Conseco and Manor Care were top performers, returning 218.02% and 174.29%, respectively. The S&P 500 Index's biggest losses came from Yahoo (-87.88%) and Broadvision (-88.26%) [GRAPH] ISHARES S&P 500 INDEX FUNDS GROWTH OF $10,000 INVESTMENT
ISHARES S&P ISHARES S&P 500/BARRA ISHARES S&P 500/BARRA S&P 500/BARRA S&P 500/BARRA 500 Index Fund Growth Index Fund Value Index Fund S&P 500 Index Growth Index Value Index $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 May-00 $9,787 $10,229 $10,055 $9,788 $10,229 $10,056 Jun-00 $10,028 $11,052 $9,660 $10,030 $11,054 $9,659 Jul-00 $9,871 $10,557 $9,851 $9,873 $10,563 $9,852 Aug-00 $10,482 $11,166 $10,510 $10,486 $11,174 $10,513 Sep-00 $9,929 $10,077 $10,505 $9,933 $10,084 $10,510 Oct-00 $9,887 $9,814 $10,700 $9,891 $9,821 $10,707 Nov-00 $9,108 $8,770 $10,153 $9,112 $8,777 $10,159 Dec-00 $9,151 $8,388 $10,673 $9,156 $8,397 $10,682 Jan-01 $9,474 $8,625 $11,121 $9,481 $8,637 $11,133 Feb-01 $8,611 $7,611 $10,383 $8,617 $7,622 $10,395 Mar-01 $8,066 $6,926 $9,974 $8,070 $6,935 $9,984
Past performance is no guarantee of future results. - -------------------------------------------------------------------------------- iSHARES MANAGERS' DISCUSSION & ANALYSES PAGE 7 MANAGERS' DISCUSSION & ANALYSIS iSHARES S&P MIDCAP 400 INDEX FUNDS PERFORMANCE AS OF 3/31/01 - -------------------------------------------------------------------------------- TOTAL RETURNS - --------------------------------------------------------------------------------
INCEPTION TO MARCH 31, 2001 ------------------------------------- FUND INCEPTION DATE INDEX MARKET* NAV** ---- -------------- -------- -------------- ----------- iShares S&P MidCap 400 Index Fund 05/22/00 0.22% 1.31% 0.04% iShares S&P MidCap 400/BARRA Growth Index Fund 07/24/00 (24.84)% (20.47)% (25.08)% iShares S&P MidCap 400/BARRA Value Index Fund 07/24/00 14.94% 15.52% 14.71%
- -------------------------------------------------------------------------------- * Calculated based on the Fund's Market Price from the Fund's first day of trading on the exchange (05/26/00, 07/28/00 and 07/28/00, respectively) ** Calculated based on the Fund's Net Asset Value (NAV) Total returns represent the iShares Fund's change in value during the periods noted above. The Market and NAV returns assume that dividends and capital gains distributions have been reinvested in the Fund at market price and net asset value, respectively. Market price returns do not include brokers' commissions. If brokerage commissions were included, market returns would be lower. The Fund's past performance is no guarantee of future results. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. SECTOR BREAKOUT --------------- [GRAPH] S&P MIDCAP 400 INDEX Consumer Discretionary 14.02% Consumer Staples 4.33% Energy 7.82% Financials 16.50% Health Care 12.10% Industrials 13.54% Information Technology 17.68% Materials 4.16% Telecomm Services 1.37% Utilities 8.48% [GRAPH] S&P MIDCAP 400/BARRA GROWTH INDEX Consumer Discretionary 14.06% Consumer Staples 2.66% Energy 7.32% Financials 9.07% Health Care 22.23% Industrials 14.09% Information Technology 27.71% Materials 1.21% Telecomm Services 0.28% Utilities 1.37% [GRAPH] S&P MIDCAP 400/BARRA VALUE INDEX Consumer Discretionary 13.99% Consumer Staples 5.64% Energy 8.21% Financials 22.36% Health Care 4.10% Industrials 13.11% Information Technology 9.79% Materials 6.48% Telecomm Services 2.24% Utilities 14.08% The iSHARES S&P MIDCAP 400 INDEX FUND, launched on May 22, 2000, seeks to track the S&P MidCap 400 Index. From its inception through March 31, 2001, the Index gained 0.22%. The ISHARES S&P MIDCAP 400/BARRA GROWTH INDEX FUND and the ISHARES S&P MIDCAP 400/BARRA VALUE INDEX FUND, both launched on July 24, 2000, seek to track the growth and value components of the S&P MidCap 400 Index, as represented by the S&P MidCap 400/BARRA Growth Index and the S&P MidCap 400/BARRA Value Index, respectively. Suffering from losses in the technology sector, the S&P MidCap 400/BARRA Growth Index returned a negative 24.84% for the period from July 24, 2000, through March 31, 2001 (the "reporting period"). The S&P MidCap 400/BARRA Value Index returned 14.94% for the same period, boosted by gains in the financial and utilities sectors. - -------------------------------------------------------------------------------- PAGE 8 iSHARES U.S. equity markets experienced significant volatility in the first half of the reporting period. Economic data released in June pointed to a rosy economy with no signs of inflation. Technology and health care stocks, the two largest sectors of the S&P MidCap 400 Index at the time, returned 9% and 12%, respectively, for the period from the iShares S&P MidCap 400 Index Fund's inception through September 30, 2000. However, jumps in the Consumer Price Index and Gross Domestic Product renewed fears of inflation in July. These increases, combined with profit warnings from major technology firms, sparked a sell-off in the technology sector and a retreat to value-oriented defensive stocks. In August, positive economic news and optimism that interest rates had stabilized triggered a broad equity market rally. However, September saw stock prices plummet once again, as the price of crude oil soared to its highest level since November 1990 and the euro plunged to its lowest point since its introduction in January 1999. A sell-off in the technology sector spread to the broader market, and even some blue chip stalwarts were dragged down. Value sectors, such as financial service and oil stocks, again benefited from the shift out of techs. U.S. equity markets plunged in the last months of 2000, driven downward by concerns about oil prices, inflation, corporate profit warnings and a possible recession. Uncertainty surrounding the U.S. Presidential election contributed to the pessimistic atmosphere. The Federal Reserve Board's (the "Fed's") Index of Leading Indicators registered its biggest drop in four years, and its Consumer Sentiment Index sank to its lowest level since June 1996. In response to slowing economic conditions, the Fed cut interest rates twice in January 2001, by a total of one percentage point. Markets spiked on the news, but December's poor economic numbers countered the effect of lower rates. A wave of earnings warnings coupled with more weak economic news sent markets reeling in February and March. Analysts described the economy to be in a "profits recession," in which the economy as a whole was growing, but profits were declining. The nearly flat performance of mid cap stocks (as measured by the S&P 400 Index) concealed widely divergent performance between growth and value mid cap stocks (as measured by the S&P MidCap 400/BARRA Growth Index and S&P MidCap 400/BARRA Value Index, respectively). This divergence resulted from many investors selling their growth stocks in favor of more stable investments. As market conditions deteriorated through the period, value stocks outperformed growth by a wide margin. Strong gains in value stocks, like the utilities, health care, and financial sectors outweighed losses in growth-oriented technology stocks, resulting in an overall positive return for the S&P MidCap 400 Index for the reporting period. The S&P MidCap 400 Index Index benefited from one of its top holdings: health-care company Genzyme Corporation. Top technology holdings Concord EFS, Electronic Arts, and Sunguard Data Systems also helped performance. On an absolute basis, Abercrombie & Fitch Co. was the MidCap 400 Index's big winner, soaring 265.87%. Bergen Brunswig Corp. also performed well, returning an impressive 201.82%. The biggest loss came from Antec Corp., which fell 85.25%. [GRAPH] ISHARES S&P MIDCAP 400 INDEX FUNDS GROWTH OF $10,000 INVESTMENT
iShares S&P Midcap iShares S&P Midcap S&P Midcap S&P Midcap iShares 400/BARRA 400/BARRA 400/BARRA 400/BARRA S&P MidCap 400 Growth Index Value Index S&P MidCap Growth Value Index Fund Fund Fund 400 Index Index Index $10,000 $10,000 May-00 $10,266 $10,265 Jun-00 $10,419 $10,000 $10,000 $10,416 $10,000 $10,000 Jul-00 $10,576 $9,607 $10,014 $10,580 $9,609 $10,014 Aug-00 $11,752 $11,033 $10,727 $11,762 $11,042 $10,730 Sep-00 $11,671 $10,758 $10,883 $11,682 $10,769 $10,889 Oct-00 $11,280 $10,168 $10,777 $11,286 $10,184 $10,785 Nov-00 $10,422 $8,726 $10,790 $10,434 $8,740 $10,799 Dec-00 $11,216 $9,161 $11,889 $11,232 $9,183 $11,903 Jan-01 $11,464 $9,159 $12,414 $11,483 $9,183 $12,434 Feb-01 $10,808 $8,405 $12,001 $10,827 $8,429 $12,022 Mar-01 $10,004 $7,492 $11,472 $10,023 $7,516 $11,493
Past performance is no guarantee of future results. - -------------------------------------------------------------------------------- iSHARES MANAGERS' DISCUSSION & ANALYSES PAGE 9 MANAGERS' DISCUSSION & ANALYSIS iSHARES S&P SMALLCAP 600 INDEX FUNDS PERFORMANCE AS OF 3/31/01 - -------------------------------------------------------------------------------- TOTAL RETURNS - --------------------------------------------------------------------------------
INCEPTION TO MARCH 31, 2001 ---------------------------------- FUND INCEPTION DATE INDEX MARKET* NAV** ---- -------------- -------- ------------ ---------- iShares S&P SmallCap 600 Index Fund 05/22/00 5.20% 7.56% 5.08% iShares S&P SmallCap 600/BARRA Growth Index Fund 07/24/00 (17.65)% (12.01)% (17.86)% iShares S&P SmallCap 600/BARRA Value Index Fund 07/24/00 12.13% 13.71% 12.13%
- -------------------------------------------------------------------------------- * Calculated based on the Fund's market price from the Fund's first day of trading on the exchange (05/26/00, 07/28/00 and 07/28/00, respectively) ** Calculated based on the Fund's Net Asset Value (NAV) Total returns represent the iShares Fund's change in value during the periods noted above. The Market and NAV returns assume that dividends and capital gains distributions have been reinvested in the Fund at market price and net asset value, respectively. Market price returns do not include brokers' commissions. If brokerage commissions were included, market returns would be lower. The Fund's past performance is no guarantee of future results. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. SECTOR BREAKOUT --------------- [GRAPH] S&P SMALLCAP 600 INDEX Consumer Discretionary 19.68% Consumer Staples 4.77% Energy 7.75% Financials 11.80% Health Care 13.29% Industrials 17.21% Information Technology 15.46% Materials 5.27% Telecomm Services 0.22% Utilities 4.55% [GRAPH] S&P SMALLCAP 600/BARRA GROWTH INDEX Consumer Discretionary 19.54% Consumer Staples 2.32% Energy 10.60% Financials 7.47% Health Care 24.15% Industrials 15.61% Information Technology 16.43% Materials 3.79% Telecomm Services 0.09% [GRAPH] S&P SMALLCAP 600/BARRA VALUE INDEX Consumer Discretionary 13.99% Consumer Staples 5.64% Energy 8.21% Financials 22.36% Health Care 4.10% Industrials 13.11% Information Technology 9.79% Materials 6.48% Telecomm Services 2.24% Utilities 14.08% The iSHARES S&P SMALLCAP 600 INDEX FUND, launched May 22, 2000, seeks to track the S&P SmallCap 600 Index. For the period from May 22, 2000 through March 31, 2001, the Index rose 5.20%. The ISHARES S&P SMALLCAP 600/BARRA GROWTH INDEX FUND and the ISHARES S&P SMALLCAP 600/BARRA VALUE INDEX FUND, both launched July 24, 2000, seek to track the growth and value components of the S&P SmallCap Index as represented by the S&P SmallCap 600/BARRA Growth Index and the S&P SmallCap 600/BARRA Value Index, respectively. From July 24, 2000 through March 31, 2001, the S&P SmallCap 600/BARRA Growth Index declined 17.65%, while the S&P SmallCap 600/BARRA Value Index returned 12.13%. - -------------------------------------------------------------------------------- PAGE 10 iSHARES Over the course of the past 12 months, investors shifted their concerns from an overheated U.S. economy to a slowing economy that might not be able to sustain the sales and profit expectations built into stock valuations. Revised Gross Domestic Product data for December 2000 revealed an annualized growth rate of 1.0%, versus the 3-4% growth rate targeted by Federal Reserve Board Chairman Alan Greenspan, and a huge correction from the 7.3% GDP growth rate of fourth quarter 1999. Economic indicators showed that sales for major retailers, U.S. vehicles, and PCs, had all dropped significantly. Factory output and capital spending had declined, inventories had swelled, and jobless claims were higher than expected. The Federal Reserve Board (the "Fed") rapidly reversed its direction. After a tightening policy that had driven interest rates up to 6.50% by May 2000, the Federal Reserve Board of Governors cut the federal funds rate by 0.50% on January 3, 2001. The equity markets soared, and both the Dow and the Nasdaq posted record gains. By late January, Greenspan confirmed that the GDP growth rate was close to 0%. So again on January 31, the Federal Reserve Board cut both the discount and Federal Funds rate by 0.50%. However, these cuts were not enough to stop the economy's deceleration. The battered technology sector was in a downward spiral, with profit warnings and layoffs announced throughout the group. The slowdown spread to the "old economy" stocks. Durable goods orders fell, and housing starts declined each month of the first quarter. Missed earnings and layoffs continued. December, January and February all had job cuts exceeding 100,000. Consumer sentiment dropped to its lowest level in five years. At the March 20th meeting of the Federal Reserve Open Market Committee, the federal funds rate was cut another 0.50%. Year-to-date decreases now totaled 1.5 basis points, almost reversing the 1.75 point increases of 2000. However, the equity markets had hoped for a larger cut to spur recovery, and the markets fell sharply on the news. The Nasdaq sank to 1857.44, its lowest level since November 1998. The Dow declined to 9720.76, a two-year low. Although growth stocks were in favor for part of 2000, a year with marked volatility, they were outpaced by value issues in all capitalization classifications. Furthermore, small cap stocks (as measured by the S&P SmallCap 600 Index) outperformed their large-cap and mid-cap counterparts (as measured by the S&P 500 Index and S&P 400 Index, respectively) by gaining 34.5% in the year from March 2000 to March 2001. Growth stock valuations plummeted as investors retreated to value issues. The growth issue-laden Nasdaq began its tailspin from a record high of 5048.62 on March 10, 2000, to a close of 1840 on March 31, 2001, losing 25% for the quarter after a 39% drop for the year of 2000. The impact of growth stocks' poor performance relative to that of value stocks was clearly reflected in the performance of the growth-oriented technology sector. The technology sector represented approximately 15% of the S&P SmallCap 600 Index. As of March 31, 2001, its Telecommunication Services and Information Technology components represented the largest negative impact on the Index's returns. Information Technology fell 32.0% in 2000 and lost an additional 10.6% in the first quarter of 2001. Telecommunications Services issues declined 67.1% in 2000, and another 19.0% in the first quarter. - -------------------------------------------------------------------------------- iSHARES MANAGERS' DISCUSSION & ANALYSES PAGE 11 At the other end of the performance spectrum, the relatively strong performance of value stocks boosted the returns of value-oriented sectors in the Index. Three of the S&P SmallCap 600 Index's value-oriented sectors had especially strong returns in 2000, although they declined in the first quarter of 2001 as profit-takers sold off their shares. Energy stocks rose a whopping 83.4% in 2000, but fell 7.0% in the first quarter of 2001. Health care stocks gained 63.7% for 2000 and declined 6.9% during the first quarter of 2001. Financial companies' shares climbed 63.4% in 2000, and then fell 4.2% for the first quarter 2001. The financials and health care sectors were among the top five sector holdings in the S&P SmallCap 600 Index, and represent 11.80% and 13.29% respectively, as of March 31, 2001. For the period, stock performance on an absolute basis diverged widely. On the positive side, Gymboree Corp. skyrocketed 263.64%, while Dimon Corp. soared 242.22%. The biggest detractor from the performance of the S&P SmallCap 600 Index was Visual Networks, which tumbled 91.67%. Index returns for the period were helped by positive performance from top-ten holdings Universal Health Services Class B, Timberland, and Barrett Resources. [GRAPH] iSHARES S&P SMALLCAP 600 INDEX FUNDS GROWTH OF $10,000 INVESTMENT
iShares iShares S&P SmallCap S&P SmallCap iShares 600/BARRA 600/BARRA S&P SmallCap S&P SmallCap S&P SmallCap 600 Growth Value Index S&P SmallCap 600/BARRA 600/BARRA Index Fund Index Fund Fund 600 Index Growth Index Value Index $10,000 $10,000 May-00 $10,162 $10,164 Jun-00 $10,762 $10,000 $10,000 $10,765 $10,000 $10,000 Jul-00 $10,493 $9,554 $10,004 $10,501 $9,555 $10,005 Aug-00 $11,420 $10,697 $10,589 $11,431 $10,706 $10,589 Sep-00 $11,107 $10,124 $10,566 $11,120 $10,137 $10,568 Oct-00 $11,184 $10,203 $10,627 $11,190 $10,216 $10,620 Nov-00 $10,018 $8,670 $9,925 $10,026 $8,683 $9,918 Dec-00 $11,250 $9,462 $11,320 $11,261 $9,481 $11,318 Jan-01 $11,733 $9,468 $12,217 $11,744 $9,489 $12,214 Feb-01 $11,015 $8,663 $11,699 $11,027 $8,683 $11,699 Mar-01 $10,508 $8,215 $11,212 $10,521 $8,235 $11,214
Past performance is no guarantee of future results. - -------------------------------------------------------------------------------- PAGE 12 iSHARES THIS PAGE INTENTIONALLY LEFT BLANK. MANAGERS' DISCUSSION & ANALYSIS iSHARES S&P GLOBAL 100 INDEX FUND PERFORMANCE AS OF 3/31/01 - -------------------------------------------------------------------------------- TOTAL RETURNS - --------------------------------------------------------------------------------
INCEPTION TO MARCH 31, 2001 -------------------------------------- FUND INCEPTION DATE INDEX MARKET* NAV** ---- -------------- -------- ------------- ------------- iShares S&P Global 100 Index Fund 12/05/00 (15.32)% (15.69)% (15.94)%
- -------------------------------------------------------------------------------- * Calculated based on the Fund's Market Price from the Fund's first day of trading on the exchange (12/08/00) ** Calculated based on the Fund's Net Asset Value (NAV) Total returns represent the iShares Fund's change in value during the periods noted above. The Market and NAV returns assume that dividends and capital gains distributions have been reinvested in the Fund at market price and net asset value, respectively. Market price returns do not include brokers' commissions. If brokerage commissions were included, market returns would be lower. The Fund's past performance is no guarantee of future results. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. SECTOR BREAKOUT --------------- [GRAPH] S&P GLOBAL 100 INDEX Consumer Discretionary 12.24% Consumer Staples 9.41% Energy 10.85% Financials 15.59% Health Care 15.68% Industrials 9.31% Information Technology 17.87% Materials 2.10% Telecomm Services 6.95% The iSHARES S&P GLOBAL 100 INDEX FUND, which was launched December 5, 2000, seeks to track the S&P Global 100 Index. For the period from December 5, 2000 through March 31, 2001 (the "reporting period"), the Index returned -15.32%. The S&P Global 100 Index measures the performance of 100 global large-cap stocks in leading transnational companies. The reporting period began on an up-note in December, as many investors anticipated that U.S. interest rates would decline. These expectations helped to drive up the price of many stocks. As it turned out, the U.S. Federal Reserve Board (the "Fed") did cut interest rates by a full percentage point in January, but some investors were still disappointed when, in early February, Fed Chairman Alan Greenspan indicated that he was not likely to cut rates again soon. The Fed's decision to hold rates steady led to further market declines in February and March, as investors became concerned that the economic slowdown would be more protracted than previously expected. At the same time, the technology and telecommunications sectors remained very weak. Slower-than-expected demand for such things as personal computers and new-generation wireless phones led to sharp declines in many stocks. Among the hardest hit were EMC Corp., whose shares declined by 62% over the reporting period, and Nortel Networks, which depreciated by 61%. As of 3/31/01, EMC and Nortel had weightings of, respectively, 0.9% and 0.7% in the Index. - -------------------------------------------------------------------------------- PAGE 14 iSHARES As technology, telecommunications and other growth stocks continued to fall out of favor, value-oriented issues in the metal, automobile and aerospace industries, among others, attracted the attention of many investors. Shares of Ford Motor Company, for example, rose 23.6% over the reporting period. As of 3/31/01, Ford had a weighting of 0.7% in the Index. [GRAPH] iSHARES S&P GLOBAL 100 INDEX FUND GROWTH OF $10,000 INVESTMENT iShares S&P Global S&P Global 100 Index Fund 100 Index $10,000 $10,000 Dec-00 $9,612 $9,670 Jan-01 $9,939 $10,028 Feb-01 $8,962 $9,057 Mar-01 $8,406 $8,468 Past performance is no guarantee of future results. - -------------------------------------------------------------------------------- iSHARES MANAGERS' DISCUSSION & ANALYSES PAGE 15 MANAGERS' DISCUSSION & ANALYSIS iSHARES S&P EUROPE 350 INDEX FUND PERFORMANCE AS OF 3/31/01 - -------------------------------------------------------------------------------- TOTAL RETURNS - --------------------------------------------------------------------------------
INCEPTION TO MARCH 31, 2001 ------------------------------------ FUND INCEPTION DATE INDEX MARKET* NAV** ---- -------------- -------- ------------- ------------ iShares S&P Europe 350 Index Fund 07/25/00 (19.73)% (15.54)% (20.10)%
- -------------------------------------------------------------------------------- * Calculated based on the Fund's Market Price from the Fund's first day of trading on the exchange (07/28/00) ** Calculated based on the Fund's Net Asset Value (NAV) Total returns represent the iShares Fund's change in value during the periods noted above. The Market and NAV returns assume that dividends and capital gains distributions have been reinvested in the Fund at market price and net asset value, respectively. Market price returns do not include brokers' commissions. If brokerage commissions were included, market returns would be lower. The Fund's past performance is no guarantee of future results. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. COUNTRY BREAKOUT ---------------- [GRAPH] S&P EUROPE 350 INDEX Austria 0.03% Belgium 0.94% Switzerland 9.43% Germany 9.99% Denmark 0.69% Spain 4.51% Finland 2.53% France 14.06% United Kingdom 39.78% Ireland 0.86% Italy 5.42% Netherlands 8.55% Norway 0.22% Portugal 0.67% Sweden 2.31% The ISHARES S&P EUROPE 350 INDEX FUND, which was launched July 25, 2000, seeks to track the S&P Europe 350 Index. For the period from July 25, 2000 through March 31, 2001 (the "reporting period"), the Index returned -19.73%. The S&P Europe 350 Index measures the performance of equities in the U.K. and 14 countries in the Euro Zone, which includes the European Monetary Union ("EMU") countries plus Denmark, Norway, Sweden and Switzerland. Europe's largest stocks were generally weak during the reporting period, reflecting investors' growing concerns about an economic slowdown in the United States, a major export market for many European companies. Market sentiment improved somewhat during the latter half of December, as investors began to anticipate a decline in U.S. interest rates. Those expectations were realized in January, a month in which the U.S. Federal Reserve Board (the "Fed") lowered interest rates by a full percentage point. Despite the extent of the rate cuts, investors were apparently disappointed when the Fed indicated that it was not likely to cut rates again soon. As a result, European markets again declined in February and March. The ongoing correction in the technology and telecommunications sectors also weighed on European markets over the reporting period. Reflecting this trend, stocks such as Vodafone and Nokia were among the Fund's weaker performers. (Vodafone was the Fund's second-largest holding as of 3/31/01, accounting for 3.7% of the portfolio. Nokia had a weighting of 2.2% as of that date.) - -------------------------------------------------------------------------------- PAGE 16 iSHARES Investors seeking out relatively low-priced stocks were drawn to the transportation, metals, building materials, forest products and chemical industries. Shares in these areas rose as a result. Companies that make consumer staples, such as tobacco, beverages, food, personal care products, or pharmaceuticals also performed relatively well. Investors often regard these areas as "defensive," because consumer demand for their products tends not to decrease significantly even during an economic downturn. [GRAPH] ISHARES S&P EUROPE 350 INDEX FUND GROWTH OF $10,000 INVESTMENT iShares S&P Europe 350 S&P Europe Index Fund 350 Index $10,000 $10,000 Jul-00 $9,764 $9,772 Aug-00 $9,731 $9,759 Sep-00 $9,269 $9,289 Oct-00 $9,206 $9,266 Nov-00 $8,849 $8,929 Dec-00 $9,491 $9,542 Jan-01 $9,459 $9,545 Feb-01 $8,659 $8,736 Mar-01 $7,990 $8,026 Past performance is no guarantee of future results. - -------------------------------------------------------------------------------- iSHARES MANAGERS' DISCUSSION & ANALYSES PAGE 17 MANAGERS' DISCUSSION & ANALYSIS iSHARES S&P/TSE 60 INDEX FUND PERFORMANCE AS OF 3/31/01 - -------------------------------------------------------------------------------- TOTAL RETURNS - --------------------------------------------------------------------------------
INCEPTION TO MARCH 31, 2001 ------------------------------------ FUND INCEPTION DATE INDEX MARKET* NAV** ---- -------------- -------- -------------------------- iShares S&P/TSE 60 Index Fund 06/12/00 (28.83)% (26.05)% (23.80)%
- -------------------------------------------------------------------------------- * Calculated based on the Fund's Market Price from the Fund's first day of trading on the exchange (06/19/00) ** Calculated based on the Fund's Net Asset Value (NAV) Total returns represent the iShares Fund's change in value during the periods noted above. The Market and NAV returns assume that dividends and capital gains distributions have been reinvested in the Fund at market price and net asset value, respectively. Market price returns do not include brokers' commissions. If brokerage commissions were included, market returns would be lower. The Fund's past performance is no guarantee of future results. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. SECTOR BREAKOUT --------------- [GRAPH] S&P/TSE 60 INDEX Consumer Discretionary 5.76% Consumer Staples 0.92% Energy 12.93% Financials 26.91% Health Care 2.04% Industrials 10.89% Information Technology 16.59% Materials 12.59% Telecomm Services 7.11% Utilities 4.26% The ISHARES S&P/TSE 60 INDEX FUND, which was launched June 12, 2000, seeks to track the S&P/TSE 60 Index. For the period from June 12, 2000 through March 31, 2001 (the "reporting period"), the Index returned -28.83%. Three major trends affected the Toronto Stock Exchange over the reporting period: the ongoing correction in telecommunications and technology-related stocks, the strong performance of energy and transportation shares, and the mixed performance of financial stocks. Slowing growth in the technology and telecommunications sectors led to sharp declines in several of the stocks that had led the TSE Index up in 1999. One such stock was Nortel Networks, which represented 11.8% of the Portfolio and 13.4% of the Index as of 3/31/01. It was the Fund's weakest holding, with a decline of 75% over the reporting period. Much of that decline took place in October 2000, when Nortel announced that its revenues would fall short of analysts' expectations. Nortel again disappointed many investors in February 2001, when it warned that it would post a first-quarter loss. Citing the slowdown in the U.S. economy, the company also reduced its growth forecast and said that it would cut 10,000 jobs. These announcements led to another steep decline in Nortel's stock. - -------------------------------------------------------------------------------- PAGE 18 iSHARES At the other end of the spectrum was Canadian Pacific Ltd. It was the Fund's strongest holding over the reporting period. In mid-February 2001, Canadian Pacific, a conglomerate with transportation, energy and hotel subsidiaries, announced that it would split into five separate companies in an effort to unlock shareholder value. The news drove up the price of Canadian Pacific's stock, which had already risen significantly as speculation grew that the company would announce just such a plan. Shares of Canadian Pacific, as well as those of Canadian National Railway Co. and other companies with interests in the energy and transportation industries, were also driven up by good results in those areas. Canadian Pacific and Canadian National accounted for 4.8% and 4.8%, respectively, of the portfolio as of 3/31/01. The performance of the Fund's holdings in the financial services sector, its largest industry weighting as of 3/31/01, varied quite a bit over the reporting period. The shares of Toronto Dominion Bank and other companies that derive a significant share of their revenue from brokerage and investment banking divisions generally posted declines, reflecting the stock market correction. Bank of Montreal and other firms with more traditional businesses fared considerably better during the reporting period, thanks in part to the Canadian central bank's decision to cut interest rates. As of 3/31/01, financial services accounted for 26.91% of the portfolio. Weightings for Toronto Dominion Bank and Bank of Montreal were 6.9% and 2.4%, respectively. [GRAPH] ISHARES S&P/TSE 60 INDEX FUNDS GROWTH OF $10,000 INVESTMENT iShares S&P/TSE 60 S&P/TSE 60 Index Fund Index $10,000 $10,000 Jun-00 $10,233 $10,486 Jul-00 $10,463 $10,837 Aug-00 $11,271 $11,675 Sep-00 $10,530 $10,520 Oct-00 $9,848 $9,690 Nov-00 $8,979 $8,954 Dec-00 $9,219 $9,027 Jan-01 $9,823 $9,480 Feb-01 $8,393 $8,082 Mar-01 $7,620 $7,596 Past performance is no guarantee of future results. - -------------------------------------------------------------------------------- iSHARES MANAGERS' DISCUSSION & ANALYSES PAGE 19 MANAGERS' DISCUSSION & ANALYSIS iSHARES NASDAQ BIOTECHNOLOGY INDEX FUND PERFORMANCE AS OF 3/31/01 - -------------------------------------------------------------------------------- TOTAL RETURNS - --------------------------------------------------------------------------------
INCEPTION TO MARCH 31, 2001 -------------------------------------------------------- FUND INCEPTION DATE INDEX MARKET* NAV** ---- -------------- -------- -------------------- ------------------------ iShares Nasdaq Biotechnology Index Fund 02/05/01 (23.04)% (24.39)% (22.93)% - ------------------------------------------------------------------------------------------------------------------
* Calculated based on the Fund's Market Price from the Fund's first day of trading on the exchange (02/09/01) ** Calculated based on the Fund's Net Asset Value (NAV) Total returns represent the iShares Fund's change in value during the periods noted above. The Market and NAV returns assume that dividends and capital gains distributions have been reinvested in the Fund at market price and net asset value, respectively. Market price returns do not include brokers' commissions. If brokerage commissions were included, market returns would be lower. The Fund's past performance is no guarantee of future results. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. [GRAPH] TOP 10 INDEX HOLDINGS --------------------- AMGEN INC. 19.4% Biogen Inc. 3.6% Chiron Corp. 3.3% Genzyme Corp. 3.2% MedImmune Inc. 3.0% Immunex Corp. 2.7% Millennium Pharmaceuticals Inc. 2.5% Human Genome Sciences Inc. 2.3% IDEC Pharmaceuticals Corp. 2.3% Aviron 1.7% The ISHARES NASDAQ BIOTECHNOLOGY INDEX FUND seeks to track the Nasdaq Biotechnology Index-Registered Trademark-. The period from the Fund's inception on February 5, 2001 to the end of the first quarter on March 31, 2001 (the "reporting period"), was a turbulent one for U.S. equity markets. Biotechnology issues were dragged into the fray, and the Index declined 23.04% during this period. After reaching a record high of 5048.62 on March 10, 2000, the technology-heavy Nasdaq Index began its downward spiral, closing the first quarter of 2001 at 1840. A 39% decline for the year 2000 was followed by an additional 25% loss in the first quarter of 2001. Investors' concerns that a slowing economy could not sustain the sales and earnings growth built into the lofty valuations of technology issues caused a massive retreat to value stocks. Faced with deteriorating economic news, the Federal Reserve Board (the "Fed") reversed its course in early 2001. After raising interest rates six times in twelve months to 6.5%, the Board of Governors held an unscheduled meeting on January 3 and dropped rates 0.5%. The U.S. stock markets soared, and both the Dow and the Nasdaq posted record gains for the month. However, the economy - -------------------------------------------------------------------------------- PAGE 20 iShares continued to slow, and technology companies continued to issue earnings warnings and announce layoffs. The Fed responded with further reductions of 0.50% on January 31, 2001, and again on March 20. Year-to-date decreases of 1.5% almost reversed the 1.75% increases of the previous year. The impact of economic deceleration, lower sales and profits, and resulting layoffs were felt by the entire U.S. equity market. Biotechnology stocks did not escape this general market downturn. An example of the type of sell-offs taking place is Amgen, Inc., which at 19.44% of assets represented the largest holding in the Nasdaq Biotechnology Index as of March 31, 2001. This global biotechnology company has been successful in developing human therapeutics based on advanced cellular and molecular biology. Nasdaq classifies Amgen as a medical-biomedical-gene company, and this area of biotechnology stocks comprised 59.29% of the Index as of March 31, 2001. On March 22, Amgen's stock price plummeted 10% for the day, a victim of institutional selling and market jitters. There was wide variance in the performance of individual stock holdings in the Index. Its best performers were two small biotechs: Viropharma Incorporated, which develops antiviral medicines, and United Therapeutics, which develops cures for vascular disease. These companies rose 20.31% and 19.23%, respectively, during the period from February 5 through March 31, 2001. However, the worst-performing issues declined by 46% to 66%. Affymetrix and Corixa led the decline, losing 54.73%, and 66.05%, respectively. In terms of top ten holdings, Biogen and Chiron both posted positive returns for the period, while Amgen and Immunex detracted from performance. [GRAPH] ISHARES NASDAQ BIOTECHNOLOGY INDEX FUNDS GROWTH OF $10,000 INVESTMENT ISHARES NASDAQ BIOTECHNOLOGY NASDAQ BIOTECHNOLOGY INDEX FUND INDEX $10,000 $10,000 Feb-01 $9,681 $9,661 Mar-01 $7,707 $7,696 Past performance is no guarantee of future results. - -------------------------------------------------------------------------------- iSHARES MANAGERS' DISCUSSION & ANALYSES PAGE 21 iSHARES S&P 100 INDEX FUND SCHEDULE OF INVESTMENTS MARCH 31, 2001 SECURITY SHARES VALUE - --------------------------------------------------------------- COMMON STOCKS - 99.91% - --------------------------------------------------------------- General Electric Co. 151,753 $ 6,352,381 Microsoft Corp.+ 81,762 4,471,359 Exxon Mobil Corp. 53,228 4,311,468 Pfizer Inc. 96,613 3,956,302 Citigroup Inc. 76,983 3,462,695 Wal-Mart Stores Inc. 68,402 3,454,301 American International Group Inc. 35,646 2,869,503 Intel Corp. 103,167 2,714,582 Merck & Co. Inc. 35,315 2,680,408 AOL Time Warner Inc.+ 66,466 2,668,610 International Business Machines Corp. 26,863 2,583,683 Verizon Communications Inc. 41,641 2,052,901 Johnson & Johnson 21,280 1,861,362 Bristol-Myers Squibb Co. 29,946 1,778,792 Cisco Systems Inc.+ 111,625 1,765,070 Coca-Cola Co. 37,981 1,715,222 Home Depot Inc. 35,468 1,528,671 Bank of America Corp. 24,921 1,364,425 JP Morgan Chase & Co. 29,135 1,308,161 Wells Fargo & Company 26,167 1,294,481 Oracle Corp.+ 85,725 1,284,160 Procter & Gamble Co. 19,965 1,249,809 AT&T Corp. 58,280 1,241,364 Viacom Inc. "B"+ 26,811 1,178,880 Tyco International Ltd. 26,784 1,157,872 Pharmacia Corporation 19,743 994,455 EMC Corp.+ 33,609 988,105 PepsiCo Inc. 22,103 971,427 Amgen Inc.+ 15,824 952,407 Hewlett-Packard Co. 30,176 943,604 Morgan Stanley Dean Witter & Co. 17,156 917,846 Walt Disney Co. (The) 31,927 913,112 American Express Co. 20,361 840,909 Texas Instruments Inc. 26,689 826,825 Ford Motor Company 28,695 806,903 Boeing Co. 13,108 730,247 Merrill Lynch & Co. Inc. 12,504 692,722 Nortel Networks Corp. 49,036 688,956 U.S. Bancorp 29,437 682,938 Enron Corp. 11,435 664,373 Du Pont (E.I.) de Nemours 15,972 650,060 Bank One Corp. 17,712 640,820 Minnesota Mining & Manufacturing Co. 6,045 628,075 McDonald's Corp. 20,074 532,965 United Technologies Corp. 7,168 525,414 Lucent Technologies Inc. 52,639 524,811 Schlumberger Ltd. 8,772 505,355 Gillette Co. 16,117 502,367 Honeywell International Inc. 12,235 499,188 El Paso Corp. 7,608 496,802 Clear Channel Communications Inc.+ 9,055 493,045 Colgate-Palmolive Co. 8,761 484,133 Alcoa Inc. 13,271 477,092 General Motors Corp. "A" 8,651 448,554 Dow Chemical Co. 13,724 433,267 Baxter International Inc. 4,511 424,666 AES Corp.+ 8,061 402,728 Southern Co. 10,371 363,918 HCA - The Healthcare Company 8,475 341,288 Exelon Corp. 4,886 320,522 Williams Companies Inc. 7,255 310,877 American General Corp. 7,725 295,481 Sara Lee Corp. 12,794 276,095 International Paper Co. 7,386 266,487 CIGNA Corp. 2,349 252,189 Halliburton Co. 6,783 249,275 Lehman Brothers Holdings Inc. 3,851 241,458 American Electric Power Inc.* 4,929 231,663 Heinz (H.J.) Co. 5,319 213,824 Hartford Financial Services Group Inc. 3,457 203,963 Campbell Soup Co. 6,465 193,110 General Dynamics Corp. 3,055 191,671 Global Crossing Ltd.+ 13,995 188,793 FedEx Corp.+ 4,475 186,518 Baker Hughes Inc. 5,097 185,072 Eastman Kodak Co. 4,603 183,614 Burlington Northern Santa Fe Corp. 6,021 182,918 Sears, Roebuck and Co. 5,114 180,371 Weyerhaeuser Co. 3,362 170,756 May Department Stores Co. 4,574 162,286 Raytheon Co. "B" 5,236 153,834 Ralston Purina Group 4,709 146,685 Avon Products Inc. 3,646 145,804 Entergy Corp. 3,418 129,884 MedImmune Inc.+ 3,236 116,091 RadioShack Corp. 2,942 107,942 Limited Inc. 6,585 103,516 Rockwell International Corp. 2,807 102,034 Norfolk Southern Corp. 5,839 97,745 Computer Sciences Corp.+ 2,585 83,625 - -------------------------------------------------------------------------------- PAGE 22 iShares iSHARES S&P 100 INDEX FUND SCHEDULE OF INVESTMENTS (CONTINUED) MARCH 31, 2001 SHARES OR SECURITY PRINCIPAL VALUE - ---------------------------------------------------------------- COMMON STOCKS (CONTINUED) - ---------------------------------------------------------------- Toys R Us Inc.+ 3,075 $ 77,182 National Semiconductor Corp.+ 2,873 76,853 Delta Air Lines Inc. 1,878 74,181 Unisys Corp.+ 5,053 70,742 Xerox Corp. 10,815 64,782 Harrah's Entertainment Inc.+ 1,809 53,239 Black & Decker Corp. 1,255 46,121 Boise Cascade Corp. 884 27,758 Allegheny Technologies Inc. 1,193 20,770 - ---------------------------------------------------------------- TOTAL COMMON STOCKS (Cost: $109,849,436) 88,681,570 - ---------------------------------------------------------------- SHORT TERM INSTRUMENTS - 0.23% - ---------------------------------------------------------------- Dreyfus Money Market Fund++ $ 79,716 79,716 Federal National Mortgage Association Discount Note 4.77%, 04/05/01++ 17,048 17,048 Goldman Sachs Financial Square Prime Obligation Fund++ 38,242 38,242 Providian Temp Cash Money Market Fund++ 72,123 72,123 - ---------------------------------------------------------------- TOTAL SHORT TERM INSTRUMENTS (Cost: $207,129) 207,129 - ---------------------------------------------------------------- TOTAL INVESTMENTS IN SECURITIES -- 100.14% (Cost $110,056,565) 88,888,699 - ---------------------------------------------------------------- Other Assets, Less Liabilities -- (0.14%) (126,971) - ---------------------------------------------------------------- NET ASSETS -- 100.00% $88,761,728 ================================================================ * Denotes all or part of security on loan. See Note 5. + Non-income earning securities. ++ Represents investment of collateral received from securities lending transactions. See Note 5. SEE NOTES TO FINANCIAL STATEMENTS. - -------------------------------------------------------------------------------- iSHARES SCHEDULES OF INVESTMENTS PAGE 23 iSHARES S&P 500 INDEX FUND SCHEDULE OF INVESTMENTS MARCH 31, 2001 SECURITY SHARES VALUE - --------------------------------------------------------------------- COMMON STOCKS - 99.89% - --------------------------------------------------------------------- General Electric Co. 2,732,654 $ 114,388,894 Microsoft Corp.+ 1,476,297 80,734,992 Exxon Mobil Corp. 959,398 77,711,238 Pfizer Inc. 1,742,762 71,366,104 Citigroup Inc. 1,390,081 62,525,843 Wal-Mart Stores Inc. 1,234,559 62,345,230 American International Group Inc. 643,046 51,765,203 Intel Corp. 1,859,647 48,931,962 Merck & Co. Inc. 636,743 48,328,794 AOL Time Warner Inc.+ 1,197,822 48,092,553 International Business Machines Corp. 483,965 46,547,754 SBC Communications Inc. 937,016 41,819,024 Verizon Communications Inc. 747,495 36,851,504 Johnson & Johnson 383,710 33,563,114 Royal Dutch Petroleum Co. - NY Shares 588,534 32,628,325 Bristol-Myers Squibb Co. 539,581 32,051,111 Cisco Systems Inc.+ 2,012,538 31,823,257 Coca-Cola Co. 684,995 30,934,374 Philip Morris Companies Inc. 609,311 28,911,807 Home Depot Inc. 641,219 27,636,539 Bank of America Corp. 450,735 24,677,741 Lilly (Eli) and Company 311,500 23,879,590 JP Morgan Chase & Co. 525,650 23,601,685 Wells Fargo & Company 473,307 23,414,497 Oracle Corp.+ 1,546,765 23,170,540 Procter & Gamble Co. 357,092 22,353,959 AT&T Corp. 1,039,552 22,142,458 Fannie Mae 277,493 22,088,443 Viacom Inc. "B"+ 483,017 21,238,257 American Home Products Corp. 360,291 21,167,096 BellSouth Corp. 516,949 21,153,553 Tyco International Ltd. 484,417 20,941,347 Abbott Laboratories 428,267 20,209,920 Dell Computer Corp.+ 716,459 18,404,041 Pharmacia Corporation 357,194 17,991,862 EMC Corp.+ 605,942 17,814,695 PepsiCo Inc. 397,141 17,454,347 Amgen Inc.+ 287,794 17,321,601 Hewlett-Packard Co. 534,053 16,699,837 Morgan Stanley Dean Witter & Co. 309,363 16,550,921 Walt Disney Co. (The) 576,193 16,479,120 Qwest Communications International Inc.+ 458,684 16,076,874 Chevron Corp. 177,717 15,603,553 Medtronic Inc. 332,741 15,219,573 American Express Co. 366,900 15,152,970 WorldCom Inc.+* 797,387 14,901,170 Texas Instruments Inc. 479,135 14,843,602 Schering-Plough Corp. 404,907 14,791,253 Ford Motor Company 510,841 14,364,849 Sun Microsystems Inc.+ 900,700 13,843,759 Boeing Co. 231,034 12,870,904 Freddie Mac 192,513 12,480,618 Merrill Lynch & Co. Inc. 223,669 12,391,263 Nortel Networks Corp. 878,960 12,349,388 U.S. Bancorp 532,123 12,345,254 Enron Corp. 206,820 12,016,242 QUALCOMM Inc.+ 207,961 11,775,792 Du Pont (E.I.) de Nemours 288,885 11,757,619 Bank One Corp. 320,412 11,592,506 Anheuser-Busch Companies Inc. 249,800 11,473,314 Walgreen Co. 280,580 11,447,664 FleetBoston Financial Corp. 299,915 11,321,791 Minnesota Mining & Manufacturing Co. 108,129 11,234,603 Comcast Corp. "A"+ 259,442 10,880,349 Texaco Inc. 152,359 10,116,638 Bank of New York Co. Inc. 205,044 10,096,367 Kimberly-Clark Corp. 147,881 10,030,768 Applied Materials Inc.+ 224,215 9,753,352 McDonald's Corp. 360,680 9,576,054 Automatic Data Processing Inc. 175,323 9,534,065 United Technologies Corp. 129,895 9,521,304 Lucent Technologies Inc. 939,539 9,367,204 Schlumberger Ltd. 158,543 9,133,662 Gillette Co. 291,749 9,093,816 Duke Energy Corp. 211,410 9,035,663 Honeywell International Inc. 220,915 9,013,332 El Paso Corp. 137,613 8,986,129 First Union Corp. 271,362 8,954,946 Target Corp. 248,119 8,952,134 Washington Mutual Inc. 161,082 8,819,240 Clear Channel Communications Inc.+ 161,967 8,819,103 Colgate-Palmolive Co. 158,488 8,758,047 Motorola Inc. 604,994 8,627,214 Alcoa Inc. 239,515 8,610,564 - -------------------------------------------------------------------------------- PAGE 24 iShares iSHARES S&P 500 INDEX FUND SCHEDULE OF INVESTMENTS (CONTINUED) MARCH 31, 2001 SECURITY SHARES VALUE - --------------------------------------------------------------------- COMMON STOCKS (CONTINUED) - --------------------------------------------------------------------- Compaq Computer Corp. 468,149 $ 8,520,312 Allstate Corp. 202,475 8,491,801 Unilever NV - NY Shares 158,353 8,335,702 General Motors Corp. "A" 151,934 7,877,778 MBNA Corp. 235,985 7,811,103 Dow Chemical Co. 246,898 7,794,570 Household International Inc. 130,362 7,722,645 Baxter International Inc. 81,467 7,669,303 Safeway Inc.+ 138,796 7,654,599 Cardinal Health Inc. 77,708 7,518,249 AES Corp.+ 147,000 7,344,120 Emerson Electric Co. 118,344 7,337,328 Marsh & McLennan Companies Inc. 76,218 7,242,997 Electronic Data Systems Corp. 129,576 7,238,115 Fifth Third Bancorp 128,354 6,858,917 Micron Technology Inc.+ 163,660 6,796,800 JDS Uniphase Corp.+ 360,309 6,643,197 Southern Co. 187,213 6,569,304 First Data Corp. 109,360 6,529,886 MetLife Inc.* 211,726 6,362,366 CVS Corp. 108,451 6,343,299 Lowe's Companies Inc. 106,014 6,196,518 HCA - The Healthcare Company 152,960 6,159,699 Schwab (Charles) Corp. 383,173 5,908,528 Kroger Co.+ 227,154 5,858,302 Exelon Corp. 88,182 5,784,739 Williams Companies Inc. 133,114 5,703,935 Kohls Corp.+ 91,941 5,671,840 Gap Inc. (The) 235,409 5,583,901 Mellon Financial Corp. 135,138 5,475,792 PNC Financial Services Group 80,095 5,426,436 Sprint Corp. (FON Group) 244,950 5,386,451 American General Corp. 139,272 5,327,154 SunTrust Banks Inc. 82,069 5,318,071 Corning Inc.* 254,754 5,270,860 UnitedHealth Group Inc. 88,395 5,238,288 Veritas Software Corp.+ 112,659 5,209,352 Sara Lee Corp. 229,563 4,953,970 Sysco Corp. 186,004 4,930,966 Sprint Corp. (PCS Group)+* 258,251 4,906,769 Conoco Inc. 172,624 4,876,628 Costco Wholesale Corp.+ 123,858 4,861,426 International Paper Co. 133,280 4,808,742 Illinois Tool Works Inc. 83,622 4,753,074 Tellabs Inc.+ 113,716 4,626,820 Dynegy Inc. "A" 89,554 4,568,150 CIGNA Corp. 42,525 4,565,484 Alltel Corp. 86,636 4,544,925 National City Corp. 168,465 4,506,439 Halliburton Co.* 122,588 4,505,109 Carnival Corp. "A" 161,906 4,479,939 Gannett Co. Inc. 73,062 4,363,263 Computer Associates International Inc. 159,992 4,351,782 Anadarko Petroleum Corp. 68,934 4,327,677 Lehman Brothers Holdings Inc. 68,866 4,317,898 Calpine Corp.+ 78,024 4,296,782 Dominion Resources Inc. 66,296 4,274,103 Waste Management Inc. 172,223 4,253,908 Lockheed Martin Corp. 119,288 4,252,617 Caterpillar Inc. 95,174 4,223,822 American Electric Power Inc.* 89,163 4,190,661 State Street Corp. 44,715 4,176,381 Omnicom Group Inc. 49,063 4,066,341 AFLAC Inc. 147,005 4,048,518 Phillips Petroleum Co.* 70,668 3,890,273 BB&T Corp.* 110,391 3,882,451 Providian Financial Corp.* 79,038 3,876,814 Tenet Healthcare Corp.+ 88,091 3,876,004 Union Pacific Corp. 68,716 3,865,275 Heinz (H.J.) Co. 96,014 3,859,763 Agilent Technologies Inc.+ 125,433 3,854,556 Northern Trust Corp. 61,449 3,840,563 Hartford Financial Services Group Inc. 65,033 3,836,947 Guidant Corp.+ 85,164 3,831,528 Paychex Inc. 103,065 3,819,847 Transocean Sedco Forex Inc.* 87,151 3,777,996 Southwest Airlines Co. 208,439 3,699,792 Reliant Energy Inc. 81,628 3,693,667 Albertson's Inc. 113,721 3,618,602 Linear Technology Corp. 87,667 3,599,826 Analog Devices Inc.+ 99,068 3,590,224 Quaker Oats Co. 36,287 3,521,653 Chubb Corp. 48,420 3,507,545 Campbell Soup Co. 116,685 3,485,381 Wachovia Corp. 57,524 3,465,821 General Dynamics Corp. 55,146 3,459,860 Tribune Co. 83,717 3,410,631 - -------------------------------------------------------------------------------- iSHARES SCHEDULES OF INVESTMENTS PAGE 25 iSHARES S&P 500 INDEX FUND SCHEDULE OF INVESTMENTS (CONTINUED) MARCH 31, 2001 SECURITY SHARES VALUE - --------------------------------------------------------------------- COMMON STOCKS (CONTINUED) - --------------------------------------------------------------------- FedEx Corp.+ 81,480 $ 3,396,086 Solectron Corp.+ 177,341 3,371,252 General Mills Inc. 78,286 3,367,081 Baker Hughes Inc. 91,978 3,339,721 Eastman Kodak Co. 83,128 3,315,976 Burlington Northern Santa Fe Corp. 109,093 3,314,245 Global Crossing Ltd.+ 245,321 3,309,380 USA Education Inc. 45,473 3,303,613 Maxim Integrated Products Inc.+* 78,641 3,270,679 Loews Corp. 54,506 3,238,201 Siebel Systems Inc.+ 118,996 3,236,691 McGraw-Hill Companies Inc. 54,104 3,227,304 Xilinx Inc.+ 91,274 3,205,999 Harley-Davidson Inc. 83,970 3,186,661 Alcan Aluminium Ltd. 88,264 3,177,504 Sears, Roebuck and Co. 89,329 3,150,634 Cendant Corp.+ 212,990 3,107,524 Weyerhaeuser Co. 60,310 3,063,145 KeyCorp 117,872 3,041,098 Kellogg Co. 112,349 3,036,793 Nextel Communications Inc. "A"+ 210,962 3,032,579 Nike Inc. "B" 74,777 3,032,207 Capital One Financial Corp. 54,480 3,023,640 Wrigley (William Jr.) Co. 62,522 3,016,687 FPL Group Inc. 48,976 3,002,229 Comerica Inc. 48,578 2,987,547 Masco Corp. 123,605 2,983,825 TXU Corporation 71,439 2,951,859 May Department Stores Co. 82,525 2,927,987 Interpublic Group of Companies Inc. 85,181 2,925,967 Forest Laboratories Inc. "A"+ 48,526 2,874,680 Golden West Financial Corp. 43,844 2,845,476 Xcel Energy Inc. 94,415 2,842,836 Stryker Corp. 54,239 2,833,988 Raytheon Co. "B" 94,171 2,766,744 Marriott International Inc. "A"* 66,510 2,738,882 Allergan Inc. 36,442 2,702,174 ConAgra Foods Inc. 147,796 2,695,799 Comverse Technology Inc.+ 45,562 2,683,146 Burlington Resources Inc. 59,708 2,671,933 St. Paul Companies Inc. 60,274 2,655,070 ALZA Corp.+ 65,520 2,653,560 Ralston Purina Group 85,001 2,647,781 Franklin Resources Inc. 67,471 2,638,791 Avon Products Inc. 65,869 2,634,101 Hershey Foods Corp. 37,692 2,612,809 Biogen Inc.+ 40,945 2,592,330 Public Service Enterprise Group Inc. 59,414 2,564,308 Occidental Petroleum Corp. 102,323 2,532,494 AON Corp. 70,928 2,517,944 TJX Companies Inc. 77,763 2,488,416 Becton Dickinson & Co. 70,221 2,480,206 Yahoo! Inc.+ 156,347 2,462,465 Progress Energy Inc. 56,938 2,452,320 Air Products & Chemicals Inc. 63,489 2,437,978 Pitney Bowes Inc. 69,865 2,427,809 Concord EFS Inc.+ 58,700 2,373,681 Deere & Co. 64,980 2,361,373 Altera Corp.+ 109,856 2,355,038 Entergy Corp. 61,745 2,346,310 Chiron Corp.+* 53,028 2,326,604 Unocal Corp. 67,277 2,325,766 Adobe Systems Inc. 66,496 2,325,365 USX-Marathon Group Inc. 86,006 2,317,862 Archer-Daniels-Midland Co. 175,420 2,306,773 Advanced Micro Devices Inc.+* 86,754 2,302,451 Federated Department Stores Inc.+ 55,133 2,290,776 Boston Scientific Corp.+ 112,289 2,265,992 Lincoln National Corp. 52,998 2,250,825 Textron Inc. 39,450 2,242,338 Starbucks Corp.+* 51,891 2,202,124 Delphi Automotive Systems Corp. 155,029 2,196,761 MBIA Inc. 27,193 2,193,931 Univision Communications Inc.+* 57,132 2,180,157 Consolidated Edison Inc. 58,722 2,178,586 PPG Industries Inc. 46,707 2,152,726 MedImmune Inc.+ 59,892 2,148,626 Danaher Corp. 39,262 2,142,135 SouthTrust Corp. 46,591 2,131,538 Synovus Financial Corp. 78,767 2,126,709 Nabors Industries Inc.+ 40,720 2,110,925 McKesson HBOC Inc. 78,673 2,104,503 Mattel Inc. 118,212 2,097,081 CIT Group Inc. (The) 72,562 2,095,591 Apple Computer Inc.+ 94,440 2,084,291 Devon Energy Corp. 35,540 2,068,428 Best Buy Co. Inc.+ 57,441 2,065,578 - -------------------------------------------------------------------------------- PAGE 26 iShares iSHARES S&P 500 INDEX FUND SCHEDULE OF INVESTMENTS (CONTINUED) MARCH 31, 2001 SECURITY SHARES VALUE - --------------------------------------------------------------------- COMMON STOCKS (CONTINUED) - --------------------------------------------------------------------- Coca-Cola Enterprises Inc.* 115,778 $ 2,058,533 Clorox Co. 65,248 2,052,050 IMS Health Inc. 81,323 2,024,943 MGIC Investment Corp. 29,584 2,024,137 KLA-Tencor Corp.+* 51,362 2,022,379 Dover Corp. 56,253 2,016,108 CSX Corp. 59,416 2,002,319 Constellation Energy Group Inc. 45,016 1,985,206 Progressive Corporation 20,319 1,971,959 Apache Corp. 34,228 1,971,875 Praxair Inc. 43,934 1,961,653 Newell Rubbermaid Inc. 73,821 1,956,257 UNUMProvident Corp. 66,707 1,949,179 Biomet Inc. 49,413 1,946,409 Jefferson-Pilot Corp. 28,534 1,937,173 Broadcom Corp. "A"+ 66,867 1,932,456 Bed Bath & Beyond Inc.+* 78,398 1,925,651 Amerada Hess Corp.* 24,464 1,911,128 Molex Inc.* 54,109 1,909,033 King Pharmaceuticals Inc.+ 46,676 1,902,047 RadioShack Corp. 51,515 1,890,085 Rohm & Haas Co. "A" 60,863 1,875,189 Staples Inc.+* 125,751 1,870,546 Dollar General Corp. 91,228 1,864,700 Scientific-Atlanta Inc. 44,621 1,855,787 Ambac Financial Group Inc. 29,223 1,853,615 PeopleSoft Inc.+ 79,070 1,853,203 Limited Inc. 117,854 1,852,665 New York Times Co. "A" 45,094 1,847,501 Rockwell International Corp. 50,645 1,840,946 Cintas Corp.* 46,628 1,838,076 Georgia-Pacific Corp.* 62,262 1,830,503 Starwood Hotels & Resorts Worldwide Inc. 53,488 1,819,127 ADC Telecommunications Inc.+ 213,827 1,817,529 Norfolk Southern Corp. 106,253 1,778,675 Ingersoll-Rand Co. 44,508 1,767,413 PP&L Resources Inc. 40,153 1,765,126 NiSource Inc. 56,420 1,755,790 AmSouth Bancorp 103,977 1,747,853 Regions Financial Corp.* 61,343 1,744,442 FirstEnergy Corp. 62,410 1,742,487 Northrop Grumman Corp. 19,859 1,727,733 Noble Drilling Corp.+ 37,200 1,717,152 Tosco Corp. 40,043 1,712,239 Kerr-McGee Corp.* 26,161 1,697,849 Cincinnati Financial Corp. 44,583 1,691,368 Kinder Morgan Inc. 31,736 1,688,355 Sabre Holdings Corp.+ 35,833 1,654,410 Wellpoint Health Networks Inc.+ 17,357 1,654,296 Stilwell Financial Inc. 61,520 1,649,966 Sanmina Corp.+ 83,942 1,642,115 Charter One Financial Inc. 57,522 1,627,873 Applera Corp. - Applied Biosystems Group 58,286 1,617,436 Lexmark International Group Inc. "A"+ 35,183 1,601,530 Teradyne Inc.+ 48,311 1,594,263 Avery Dennison Corp. 30,616 1,592,644 Intuit Inc.+ 57,120 1,585,080 Novellus Systems Inc.+ 38,944 1,579,666 DTE Energy Co.* 39,525 1,573,095 Barrick Gold Corp. 109,716 1,567,842 Countrywide Credit Industries Inc. 31,617 1,560,299 Ameren Corp.* 38,053 1,558,270 Tricon Global Restaurants Inc.+ 40,497 1,546,580 Convergys Corp.+ 42,683 1,539,576 Computer Sciences Corp.+ 46,577 1,506,766 Gateway Inc.+ 89,559 1,505,487 Watson Pharmaceuticals Inc.+ 28,361 1,491,789 Ecolab Inc.* 35,133 1,490,342 Johnson Controls Inc. 23,827 1,488,234 Cinergy Corp. 44,076 1,478,750 Fortune Brands Inc. 42,903 1,475,863 Network Appliance Inc.+ 87,591 1,472,624 AMR Corp.+ 41,764 1,466,752 BMC Software Inc.+ 67,980 1,461,570 Old Kent Financial Corp. 38,297 1,455,286 Union Planters Corp. 37,762 1,453,459 Conseco Inc.* 90,126 1,451,029 KeySpan Corp. 37,314 1,422,783 Alamosa Holdings Inc. 30,570 1,414,168 Symbol Technologies Inc. 40,514 1,413,939 Aetna Inc.+ 39,174 1,407,130 LSI Logic Corp.+ 88,461 1,391,492 Willamette Industries Inc.* 30,230 1,390,580 Toys R Us Inc.+ 55,239 1,386,499 Healthsouth Corp.+ 107,013 1,379,398 - -------------------------------------------------------------------------------- iSHARES SCHEDULES OF INVESTMENTS PAGE 27 iSHARES S&P 500 INDEX FUND SCHEDULE OF INVESTMENTS (CONTINUED) MARCH 31, 2001 SECURITY SHARES VALUE - --------------------------------------------------------------------- COMMON STOCKS (CONTINUED) - --------------------------------------------------------------------- Applied Micro Circuits Corp.+ 82,750 $ 1,365,375 Torchmark Corp. 34,996 1,358,895 UST Inc. 45,079 1,354,624 Bear Stearns Companies Inc. 29,568 1,352,440 Delta Air Lines Inc. 34,087 1,346,436 EOG Resources Inc. 32,284 1,331,069 Fiserv Inc.+ 29,700 1,328,612 Palm Inc.+ 156,796 1,318,066 Sempra Energy 56,584 1,317,276 Eaton Corp. 19,178 1,313,693 Vulcan Materials Co. 27,928 1,307,868 National Semiconductor Corp.+ 48,840 1,306,470 PG&E Corp. 103,978 1,294,526 Parker Hannifin Corp. 32,279 1,282,122 Dow Jones & Co. Inc. 24,280 1,271,058 Block (H & R) Inc.* 25,374 1,270,222 St. Jude Medical Inc.+ 23,426 1,261,490 Kmart Corp.+ 134,027 1,259,854 Genuine Parts Co. 47,921 1,241,633 Moody's Corp. 45,013 1,240,558 Vitesse Semiconductor Corp.+ 51,915 1,236,226 Equifax Inc. 39,176 1,224,250 Unisys Corp.+ 86,666 1,213,324 Brown-Forman Corp. "B" 18,921 1,172,156 TRW Inc. 34,458 1,171,572 Penney (J.C.) Company Inc.* 72,599 1,160,858 Jabil Circuit Inc.+ 52,755 1,140,563 Edison International 90,195 1,140,065 Sherwin-Williams Co. 44,532 1,134,675 Harcourt General Inc. 20,231 1,126,260 CenturyTel Inc. 39,009 1,121,509 Thermo Electron Corp.+ 49,842 1,120,448 Xerox Corp. 184,947 1,107,833 VF Corp. 31,524 1,103,340 Tiffany & Co. 40,395 1,100,764 Robert Half International Inc.+ 49,214 1,099,933 Winn-Dixie Stores Inc. 38,608 1,095,309 GPU Inc. 33,650 1,093,288 Knight Ridder Inc.* 20,268 1,088,594 Citrix Systems Inc.+ 51,325 1,084,241 Goodrich (B.F.) Co. 28,241 1,083,607 Pinnacle West Capital Corp. 23,441 1,075,239 CMS Energy Corp.* 36,261 1,072,963 Hilton Hotels Corp. 102,045 1,066,370 T Rowe Price Group Inc. 33,652 1,053,728 Eastman Chemical Co. 21,312 1,048,977 Leggett & Platt Inc. 54,386 1,045,843 NCR Corp.+ 26,755 1,044,248 Goodyear Tire & Rubber Co.* 43,648 1,041,005 Sigma-Aldrich Corp.* 21,355 1,022,371 Avaya Inc.+ 77,106 1,002,378 SAFECO Corp.* 35,306 995,188 Huntington Bancshares Inc. 69,443 989,563 Compuware Corp.+ 101,175 986,456 PACCAR Inc. 21,204 950,204 Harrah's Entertainment Inc.+ 32,261 949,441 ITT Industries Inc. 24,372 944,415 Mercury Interactive Corp.+ 22,347 935,781 Citizen Communications Co.+* 73,470 929,395 Fluor Corp. 20,718 921,951 Whirlpool Corp.* 18,391 919,366 Engelhard Corp. 35,476 917,409 Donnelley (R.R.) & Sons Co. 33,735 884,532 AutoZone Inc.+ 31,527 883,387 Grainger (W.W.) Inc. 25,950 878,407 Phelps Dodge Corp. 21,830 877,129 Nucor Corp.* 21,589 865,071 Cooper Industries Inc. 25,848 864,616 Newmont Mining Corp. 53,340 859,841 Allied Waste Industries Inc.+ 54,464 853,996 Black & Decker Corp. 22,436 824,523 Darden Restaurants Inc. 33,130 786,837 Placer Dome Inc. 90,665 784,252 Stanley Works (The) 23,789 783,848 Sealed Air Corp.+* 23,177 772,489 Sunoco Inc. 23,623 766,094 Niagara Mohawk Holdings Inc.+ 44,427 750,816 Pall Corp. 34,149 748,546 Inco Ltd.+ 50,392 747,313 Ashland Inc. 19,327 742,157 PerkinElmer Inc. 13,856 726,747 Office Depot Inc.+ 82,535 722,181 Rowan Companies Inc.+ 26,172 719,730 Tektronix Inc.+ 26,204 715,107 Wendy's International Inc. 31,582 704,910 Dana Corp. 40,933 703,229 Mead Corp. 27,861 699,032 - -------------------------------------------------------------------------------- PAGE 28 iShares iSHARES S&P 500 INDEX FUND SCHEDULE OF INVESTMENTS (CONTINUED) MARCH 31, 2001 SECURITY SHARES VALUE - --------------------------------------------------------------------- COMMON STOCKS (CONTINUED) - --------------------------------------------------------------------- American Power Conversion Corp.+ 53,963 $ 695,617 Maytag Corp. 21,331 687,925 Centex Corp. 16,361 681,436 Parametric Technology Corp.+ 74,784 677,730 Liz Claiborne Inc.* 14,377 676,438 Bausch & Lomb Inc.* 14,813 676,362 Westvaco Corp. 27,792 673,400 Coors (Adolf) Company "B" 10,278 672,592 Cabletron Systems Inc.+ 51,057 658,635 U.S. Airways Group Inc.+ 18,455 654,230 Bard (C.R.) Inc. 14,058 638,233 FMC Corp.+ 8,476 624,173 Hasbro Inc. 47,713 615,498 Alberto-Culver Co.* 15,406 611,002 Temple-Inland Inc. 13,709 606,623 Circuit City Stores Inc. 56,958 603,755 Conexant Systems Inc.+ 67,369 602,110 Quintiles Transnational Corp.+ 31,887 601,867 International Flavors & Fragrances Inc. 27,114 598,135 Millipore Corp. 12,829 593,470 Nordstrom Inc.* 35,701 581,212 Manor Care Inc.+ 28,291 577,136 QLogic Corp.+ 25,312 569,520 Dillards Inc. "A" 25,104 550,782 Visteon Corp. 36,236 544,989 Freeport-McMoRan Copper & Gold Inc.+ 41,097 536,316 Pactiv Corp.+ 43,761 529,946 Boise Cascade Corp. 15,857 497,910 Humana Inc.+ 46,886 491,365 SUPERVALU Inc. 36,664 488,731 Autodesk Inc. 15,964 487,900 Bemis Co. 14,717 486,986 Meredith Corp. 13,890 484,900 Deluxe Corp. 20,145 476,832 Brunswick Corp. 24,155 474,163 NICOR Inc. 12,538 467,291 Snap-On Inc. 15,984 465,454 Pulte Corp. 11,271 455,461 Novell Inc.+ 90,458 452,290 Crane Co. 16,757 436,520 Cummins Engine Company Inc. 11,438 429,383 Great Lakes Chemical Corp.* 13,849 425,718 Reebok International Ltd.+ 15,807 392,962 SHARES OR SECURITY PRINCIPAL VALUE - --------------------------------------------------------------------- Allegheny Technologies Inc. 22,293 $ 388,121 KB HOME 11,836 386,327 Hercules Inc.* 29,730 386,193 Homestake Mining Company 72,834 383,107 Peoples Energy Corp. 9,824 381,859 Tupperware Corp. 15,960 380,806 Navistar International Corp.+ 16,437 374,764 USX-U.S. Steel Group Inc. 24,638 361,932 Ball Corp. 7,832 359,254 ONEOK Inc. 8,062 329,655 Andrew Corp.+ 22,440 322,575 Power-One Inc.+ 21,800 315,882 Consolidated Stores Corp.+ 30,869 310,233 Longs Drug Stores Corp. 10,391 307,158 Ryder System Inc. 16,447 295,882 Thomas & Betts Corp. 15,984 277,482 Louisiana-Pacific Corp. 28,847 277,220 National Service Industries Inc. 11,374 266,720 Timken Co. 16,494 258,131 Potlatch Corp. 7,865 251,287 Sapient Corp.+* 33,620 241,644 Adaptec Inc.+ 27,289 236,647 Briggs & Stratton Corp. 6,013 230,719 Cooper Tire & Rubber Co. 20,107 228,214 Worthington Industries Inc. 23,767 221,033 McDermott International Inc. 16,816 212,722 American Greetings Corp. "A" 17,624 186,814 BroadVision Inc.+* 4,099 21,904 - --------------------------------------------------------------------- TOTAL COMMON STOCKS (Cost: $3,400,611,853) 2,873,716,908 - --------------------------------------------------------------------- SHORT TERM INSTRUMENTS - 2.49% - --------------------------------------------------------------------- Dreyfus Money Market Fund++ $27,572,546 27,572,546 Federal National Mortgage Association Discount Note 4.77%, 04/05/01++ 3,509,806 3,509,806 Goldman Sachs Financial Square Prime Obligation Fund++ 15,614,834 15,614,834 Providian Temp Cash Money Market Fund++ 24,946,590 24,946,590 - --------------------------------------------------------------------- TOTAL SHORT TERM INSTRUMENTS (Cost: $71,643,776) 71,643,776 - --------------------------------------------------------------------- - -------------------------------------------------------------------------------- iSHARES SCHEDULES OF INVESTMENTS PAGE 29 iSHARES S&P 500 INDEX FUND SCHEDULE OF INVESTMENTS (CONTINUED) MARCH 31, 2001 SECURITY PRINCIPAL VALUE - --------------------------------------------------------------------- REPURCHASE AGREEMENT - 0.03% - --------------------------------------------------------------------- Investors Bank & Trust Tri-Party Repurchase Agreement, dated 03/30/01, due 04/02/01, with a maturity value of $879,372 and an effective yield of 4.90%. $ 879,013 $ 879,013 - --------------------------------------------------------------------- TOTAL REPURCHASE AGREEMENT (Cost: $879,013) 879,013 - --------------------------------------------------------------------- TOTAL INVESTMENTS IN SECURITIES -- 102.41% (Cost $3,473,134,642) 2,946,239,697 - --------------------------------------------------------------------- Other Assets, Less Liabilities -- (2.41%) (69,400,901) - --------------------------------------------------------------------- NET ASSETS -- 100.00% $2,876,838,796 ===================================================================== * Denotes all or part of security on loan. See Note 5. + Non-income earning securities. ++ Represents investment of collateral received from securities lending transactions. See Note 5. SEE NOTES TO FINANCIAL STATEMENTS. - -------------------------------------------------------------------------------- PAGE 30 iShares iSHARES S&P 500/BARRA GROWTH INDEX FUND SCHEDULE OF INVESTMENTS MARCH 31, 2001 SECURITY SHARES VALUE - ------------------------------------------------------------------ COMMON STOCKS - 99.90% - ------------------------------------------------------------------ General Electric Co. 293,461 $ 12,284,277 Microsoft Corp.+* 158,016 8,641,500 Pfizer Inc. 186,843 7,651,221 Wal-Mart Stores Inc. 132,291 6,680,696 American International Group Inc. 68,941 5,549,750 Intel Corp. 199,309 5,244,318 Merck & Co. Inc. 68,296 5,183,666 AOL Time Warner Inc.+ 128,162 5,145,704 International Business Machines Corp. 51,950 4,996,551 Johnson & Johnson 41,172 3,601,315 Bristol-Myers Squibb Co. 57,902 3,439,379 Cisco Systems Inc.+ 215,516 3,407,847 Coca-Cola Co. 73,658 3,326,395 Home Depot Inc. 68,586 2,956,057 Lilly (Eli) and Company 33,388 2,559,524 Oracle Corp.+ 165,450 2,478,441 Procter & Gamble Co. 38,489 2,409,411 American Home Products Corp. 38,810 2,280,087 Abbott Laboratories 45,811 2,161,821 Dell Computer Corp.+ 76,624 1,968,279 Pharmacia Corporation 38,201 1,924,184 EMC Corp.+ 64,804 1,905,238 PepsiCo Inc. 42,748 1,878,775 Amgen Inc.+ 30,848 1,856,664 Medtronic Inc. 35,592 1,627,978 American Express Co. 39,382 1,626,477 Schering-Plough Corp. 43,297 1,581,639 Sun Microsystems Inc.+ 96,549 1,483,958 QUALCOMM Inc.+ 22,308 1,263,191 Walgreen Co. 30,088 1,227,590 Anheuser-Busch Companies Inc. 26,725 1,227,479 Bank of New York Co. Inc. 21,931 1,079,882 Kimberly-Clark Corp. 15,811 1,072,460 Automatic Data Processing Inc. 18,824 1,023,649 Gillette Co. 31,197 972,410 Colgate-Palmolive Co. 16,954 936,878 Baxter International Inc. 8,705 819,489 Cardinal Health Inc. 8,307 803,702 Marsh & McLennan Companies Inc. 8,142 773,734 Schwab (Charles) Corp. 40,985 631,989 Kroger Co.+ 24,253 625,485 Exelon Corp. 9,430 618,608 Kohls Corp.+ 9,826 606,166 Gap Inc. (The) 25,168 596,985 Corning Inc. 27,235 563,492 Veritas Software Corp.+* 12,108 559,874 Sysco Corp. 20,011 530,492 Sara Lee Corp. 24,493 528,559 Sprint Corp. (PCS Group)+* 27,611 524,609 Tellabs Inc.+ 12,168 495,086 State Street Corp. 4,795 447,853 Omnicom Group Inc. 5,246 434,788 Providian Financial Corp. 8,458 414,865 Heinz (H.J.) Co. 10,296 413,899 Northern Trust Corp. 6,572 410,750 Guidant Corp.+ 9,108 409,769 Paychex Inc. 11,051 409,578 Analog Devices Inc.+ 10,667 386,572 Linear Technology Corp. 9,384 385,330 Quaker Oats Co. 3,902 378,689 Campbell Soup Co. 12,445 371,732 General Mills Inc. 8,392 360,940 USA Education Inc. 4,868 353,660 Maxim Integrated Products Inc.+* 8,393 349,065 Siebel Systems Inc.+ 12,715 345,848 Xilinx Inc.+ 9,768 343,101 Harley-Davidson Inc.* 8,983 340,905 Kellogg Co. 12,006 324,522 Nextel Communications Inc. "A"+ 22,549 324,142 Capital One Financial Corp. 5,837 323,953 Wrigley (William Jr.) Co. 6,676 322,117 Interpublic Group of Companies Inc. 9,108 312,860 Forest Laboratories Inc. "A"+ 5,214 308,877 Stryker Corp. 5,794 302,737 Allergan Inc. 3,891 288,518 Comverse Technology Inc.+ 4,891 288,031 Ralston Purina Group 9,151 285,054 ALZA Corp.+ 7,004 283,662 Avon Products Inc. 7,047 281,810 Hershey Foods Corp. 4,032 279,498 Biogen Inc.+ 4,383 277,499 TJX Companies Inc. 8,277 264,864 Yahoo! Inc.+ 16,550 260,663 Concord EFS Inc.+ 6,400 258,800 Altera Corp.+ 11,778 252,491 Adobe Systems Inc. 7,124 249,126 Starbucks Corp.+* 5,616 238,329 Univision Communications Inc.+* 6,105 232,967 - -------------------------------------------------------------------------------- iSHARES SCHEDULES OF INVESTMENTS PAGE 31 iSHARES S&P 500/BARRA GROWTH INDEX FUND SCHEDULE OF INVESTMENTS (CONTINUED) MARCH 31, 2001 SECURITY SHARES VALUE - ------------------------------------------------------------------ COMMON STOCKS (CONTINUED) - ------------------------------------------------------------------ MedImmune Inc.+ 6,264 $ 224,721 IMS Health Inc. 8,681 216,157 Broadcom Corp. "A"+ 7,236 209,120 Biomet Inc. 5,306 209,007 Bed Bath & Beyond Inc.+ 8,486 208,437 King Pharmaceuticals Inc.+ 5,001 203,791 RadioShack Corp. 5,497 201,685 PeopleSoft Inc.+ 8,448 198,000 Cintas Corp.* 5,000 197,100 Sabre Holdings Corp.+ 3,904 180,248 Sanmina Corp.+ 9,065 177,334 Stilwell Financial Inc. 6,572 176,261 Applera Corp. - Applied Biosystems Group 6,257 173,632 Lexmark International Group Inc. "A"+ 3,748 170,609 Avery Dennison Corp. 3,269 170,053 Tricon Global Restaurants Inc.+ 4,323 165,095 Fiserv Inc.+ 3,680 164,623 Convergys Corp.+ 4,553 164,227 Ecolab Inc. 3,746 158,905 Network Appliance Inc.+ 9,417 158,323 Symbol Technologies Inc. 4,356 152,024 Applied Micro Circuits Corp.+ 8,812 145,398 UST Inc. 4,809 144,510 Palm Inc.+ 16,834 141,511 Dow Jones & Co. Inc. 2,584 135,272 Vitesse Semiconductor Corp.+ 5,638 134,255 Moody's Corp. 4,800 132,288 Equifax Inc. 4,212 131,625 Robert Half International Inc.+ 5,292 118,276 Citrix Systems Inc.+ 5,516 116,526 Mercury Interactive Corp.+ 2,406 100,751 PerkinElmer Inc. 1,489 78,098 U.S. Airways Group Inc.+ 1,997 70,794 Millipore Corp. 1,384 64,024 QLogic Corp.+ 2,731 61,448 Tupperware Corp. 1,703 40,634 Power-One Inc.+ 2,340 33,907 - ------------------------------------------------------------------ TOTAL COMMON STOCKS (Cost: $175,268,317) 141,379,494 - ------------------------------------------------------------------ SECURITY PRINCIPAL VALUE - ------------------------------------------------------------------ SHORT TERM INSTRUMENTS - 7.82% - ------------------------------------------------------------------ Dreyfus Money Market Fund++ $4,258,994 $ 4,258,994 Federal National Mortgage Association Discount Note 4.77%, 04/05/01++ 910,709 910,709 Goldman Sachs Financial Square Prime Obligation Fund++ 2,043,379 2,043,379 Providian Temp Cash Money Market Fund++ 3,853,376 3,853,376 - ------------------------------------------------------------------ TOTAL SHORT TERM INSTRUMENTS (Cost: $11,066,458) 11,066,458 - ------------------------------------------------------------------ REPURCHASE AGREEMENT - 0.01% - ------------------------------------------------------------------ Investors Bank & Trust Tri-Party Repurchase Agreement, dated 03/30/01, due 04/02/01, with a maturity value of $17,187 and an effective yield of 4.90%. 17,180 17,180 - ------------------------------------------------------------------ TOTAL REPURCHASE AGREEMENT (Cost: $17,180) 17,180 - ------------------------------------------------------------------ TOTAL INVESTMENTS IN SECURITIES -- 107.73% (Cost $186,351,955) 152,463,132 - ------------------------------------------------------------------ Other Assets, Less Liabilities -- (7.73%) (10,943,027) - ------------------------------------------------------------------ NET ASSETS -- 100.00% $141,520,105 ================================================================== * Denotes all or part of security on loan. See Note 5. + Non-income earning securities. ++ Represents investment of collateral received from securities lending transactions. See Note 5. SEE NOTES TO FINANCIAL STATEMENTS. - -------------------------------------------------------------------------------- PAGE 32 iShares iSHARES S&P 500/BARRA VALUE INDEX FUND SCHEDULE OF INVESTMENTS MARCH 31, 2001 SECURITY SHARES VALUE - ------------------------------------------------------------------- COMMON STOCKS - 99.90% - ------------------------------------------------------------------- Exxon Mobil Corp. 226,940 $ 18,382,140 Citigroup Inc. 328,003 14,753,575 SBC Communications Inc. 221,103 9,867,827 Verizon Communications Inc. 176,327 8,692,921 Royal Dutch Petroleum Co. - NY Shares 139,442 7,730,664 Philip Morris Companies Inc. 145,174 6,888,506 Bank of America Corp. 106,363 5,823,374 JP Morgan Chase & Co. 124,216 5,577,298 Wells Fargo & Company 111,595 5,520,605 Fannie Mae 65,778 5,235,929 AT&T Corp. 245,359 5,226,147 Viacom Inc. "B"+ 113,896 5,008,007 BellSouth Corp. 122,137 4,997,846 Tyco International Ltd. 114,504 4,950,008 Hewlett-Packard Co. 126,367 3,951,496 Morgan Stanley Dean Witter & Co. 72,949 3,902,772 Walt Disney Co. (The) 135,857 3,885,510 Qwest Communications International Inc.+ 108,135 3,790,132 Chevron Corp.* 41,902 3,678,996 WorldCom Inc.+* 188,214 3,517,249 Texas Instruments Inc. 113,175 3,506,162 Ford Motor Company 121,145 3,406,597 Boeing Co. 54,695 3,047,058 Freddie Mac 45,385 2,942,310 U.S. Bancorp 126,452 2,933,686 Nortel Networks Corp. 208,115 2,924,016 Merrill Lynch & Co. Inc.* 52,772 2,923,569 Enron Corp. 48,752 2,832,491 Du Pont (E.I.) de Nemours 68,128 2,772,810 Bank One Corp. 75,520 2,732,314 Minnesota Mining & Manufacturing Co. 25,827 2,683,425 FleetBoston Financial Corp. 70,739 2,670,397 Comcast Corp. "A"+ 61,102 2,562,465 Texaco Inc. 35,938 2,386,283 Applied Materials Inc.+ 52,861 2,299,453 McDonald's Corp. 85,662 2,274,326 United Technologies Corp. 30,682 2,248,991 Lucent Technologies Inc. 222,205 2,215,384 Schlumberger Ltd. 37,396 2,154,384 Duke Energy Corp. 49,835 2,129,948 Honeywell International Inc. 52,094 2,125,435 El Paso Corp.* 32,467 2,120,095 First Union Corp. 63,993 2,111,769 Target Corp. 58,510 2,111,041 Clear Channel Communications Inc.+ 38,296 2,085,217 Washington Mutual Inc. 38,006 2,080,829 Motorola Inc. 142,702 2,034,931 Alcoa Inc. 56,501 2,031,211 Compaq Computer Corp.* 110,467 2,010,499 Allstate Corp. 47,773 2,003,600 Unilever NV - NY Shares 37,338 1,965,472 General Motors Corp. "A" 35,887 1,860,741 Dow Chemical Co. 58,547 1,848,329 MBNA Corp. 55,644 1,841,816 Household International Inc. 30,757 1,822,045 Safeway Inc.+ 32,731 1,805,115 Emerson Electric Co. 27,953 1,733,086 AES Corp.+* 34,666 1,731,913 Electronic Data Systems Corp. 30,544 1,706,188 Fifth Third Bancorp 30,318 1,620,118 Micron Technology Inc.+ 38,839 1,612,984 JDS Uniphase Corp.+ 85,661 1,579,375 Southern Co. 44,152 1,549,294 First Data Corp. 25,806 1,540,876 MetLife Inc.* 49,941 1,500,727 CVS Corp. 25,594 1,496,993 Lowe's Companies Inc. 25,010 1,461,835 HCA - The Healthcare Company 36,086 1,453,183 Williams Companies Inc. 31,437 1,347,075 Mellon Financial Corp. 31,880 1,291,778 PNC Financial Services Group 18,876 1,278,849 Sprint Corp. (FON Group) 57,771 1,270,384 American General Corp. 32,847 1,256,398 SunTrust Banks Inc. 19,345 1,253,556 UnitedHealth Group Inc. 20,824 1,234,030 Conoco Inc. 40,712 1,150,114 Costco Wholesale Corp.+ 29,215 1,146,689 International Paper Co. 31,444 1,134,500 Illinois Tool Works Inc. 19,737 1,121,851 Dynegy Inc. "A" 21,121 1,077,382 CIGNA Corp. 10,025 1,076,284 Alltel Corp. 20,421 1,071,286 National City Corp. 39,740 1,063,045 Halliburton Co.* 28,899 1,062,038 Carnival Corp. "A" 38,210 1,057,271 Gannett Co. Inc. 17,217 1,028,199 Computer Associates International Inc. 37,676 1,024,787 Lehman Brothers Holdings Inc. 16,340 1,024,518 - -------------------------------------------------------------------------------- iSHARES SCHEDULES OF INVESTMENTS PAGE 33 iSHARES S&P 500/BARRA VALUE INDEX FUND SCHEDULE OF INVESTMENTS (CONTINUED) MARCH 31, 2001 SECURITY SHARES VALUE - ------------------------------------------------------------------- COMMON STOCKS (CONTINUED) - ------------------------------------------------------------------- Anadarko Petroleum Corp. 16,261 $ 1,020,866 Calpine Corp.+* 18,415 1,014,114 Waste Management Inc. 40,910 1,010,477 Dominion Resources Inc. 15,622 1,007,150 Lockheed Martin Corp. 28,135 1,003,013 Caterpillar Inc. 22,456 996,597 American Electric Power Inc.* 21,028 988,316 AFLAC Inc. 34,647 954,178 Agilent Technologies Inc.+ 29,878 918,151 Phillips Petroleum Co.* 16,678 918,124 BB&T Corp.* 26,099 917,902 Tenet Healthcare Corp.+ 20,853 917,532 Union Pacific Corp. 16,182 910,238 Hartford Financial Services Group Inc. 15,331 904,529 Transocean Sedco Forex Inc.* 20,578 892,056 Southwest Airlines Co. 49,270 874,543 Reliant Energy Inc. 19,249 871,017 Albertson's Inc. 26,809 853,062 Chubb Corp. 11,414 826,830 Wachovia Corp. 13,597 819,219 General Dynamics Corp. 13,014 816,498 Solectron Corp.+ 42,320 804,503 Tribune Co. 19,745 804,411 FedEx Corp.+ 19,220 801,090 Baker Hughes Inc. 21,702 788,000 Global Crossing Ltd.+ 58,159 784,565 Eastman Kodak Co. 19,610 782,243 Burlington Northern Santa Fe Corp. 25,663 779,642 Sears, Roebuck and Co. 21,827 769,838 Loews Corp. 12,870 764,607 McGraw-Hill Companies Inc. 12,763 761,313 Alcan Aluminium Ltd. 20,795 748,620 Cendant Corp.+ 50,955 743,433 Weyerhaeuser Co. 14,201 721,269 KeyCorp 27,821 717,782 Nike Inc. "B" 17,637 715,180 Comerica Inc. 11,540 709,710 FPL Group Inc. 11,556 708,383 Masco Corp. 29,161 703,947 TXU Corporation 16,858 696,573 May Department Stores Co. 19,446 689,944 Golden West Financial Corp. 10,337 670,871 Xcel Energy Inc. 22,250 669,948 Raytheon Co. "B" 22,204 652,354 Marriott International Inc. "A"* 15,680 645,702 ConAgra Foods Inc. 34,854 635,737 Burlington Resources Inc. 14,066 629,453 St. Paul Companies Inc. 14,217 626,259 Franklin Resources Inc. 15,916 622,475 Public Service Enterprise Group Inc. 14,000 604,240 Occidental Petroleum Corp. 24,160 597,960 AON Corp. 16,728 593,844 Becton Dickinson & Co. 16,633 587,478 Progress Energy Inc. 13,440 578,861 Air Products & Chemicals Inc. 14,976 575,078 Pitney Bowes Inc. 16,463 572,089 Deere & Co. 15,322 556,801 Entergy Corp. 14,562 553,356 Chiron Corp.+* 12,529 549,710 Unocal Corp.* 15,872 548,695 USX-Marathon Group Inc. 20,283 546,627 Advanced Micro Devices Inc.+* 20,559 545,636 Archer-Daniels-Midland Co. 41,363 543,923 Federated Department Stores Inc.+ 13,009 540,524 Boston Scientific Corp.+ 26,524 535,254 Lincoln National Corp. 12,501 530,917 Textron Inc. 9,283 527,646 Delphi Automotive Systems Corp. 36,575 518,268 MBIA Inc. 6,415 517,562 Consolidated Edison Inc. 13,844 513,612 PPG Industries Inc. 11,001 507,036 Danaher Corp. 9,265 505,498 Apple Computer Inc.+ 22,813 503,483 Synovus Financial Corp. 18,643 503,361 SouthTrust Corp. 10,975 502,106 Devon Energy Corp. 8,573 498,949 Nabors Industries Inc.+* 9,598 497,560 McKesson HBOC Inc. 18,541 495,972 Mattel Inc. 27,927 495,425 CIT Group Inc. (The) 17,140 495,003 Best Buy Co. Inc.+ 13,554 487,402 Coca-Cola Enterprises Inc.* 27,301 485,412 Clorox Co. 15,385 483,858 MGIC Investment Corp. 6,970 476,887 Dover Corp. 13,286 476,170 KLA-Tencor Corp.+* 12,075 475,453 CSX Corp. 13,951 470,149 Progressive Corporation 4,797 465,549 - -------------------------------------------------------------------------------- PAGE 34 iShares iSHARES S&P 500/BARRA VALUE INDEX FUND SCHEDULE OF INVESTMENTS (CONTINUED) MARCH 31, 2001 SECURITY SHARES VALUE - ------------------------------------------------------------------- COMMON STOCKS (CONTINUED) - ------------------------------------------------------------------- Apache Corp. 8,076 $ 465,258 UNUMProvident Corp. 15,850 463,137 Praxair Inc. 10,366 462,842 Newell Rubbermaid Inc. 17,412 461,418 Constellation Energy Group Inc. 10,440 460,404 Jefferson-Pilot Corp. 6,735 457,239 Amerada Hess Corp.* 5,791 452,393 Molex Inc.* 12,789 451,212 Rohm & Haas Co. "A" 14,367 442,647 Staples Inc.+ 29,666 441,282 Dollar General Corp. 21,539 440,257 Scientific-Atlanta Inc. 10,525 437,735 Regions Financial Corp.* 15,392 437,710 Limited Inc. 27,826 437,425 ADC Telecommunications Inc.+ 51,298 436,032 Ambac Financial Group Inc. 6,871 435,828 New York Times Co. "A" 10,611 434,733 Rockwell International Corp. 11,932 433,728 Georgia-Pacific Corp.* 14,676 431,474 Starwood Hotels & Resorts Worldwide Inc. 12,612 428,934 Norfolk Southern Corp. 25,080 419,839 PP&L Resources Inc. 9,475 416,521 Ingersoll-Rand Co. 10,481 416,201 NiSource Inc. 13,333 414,923 AmSouth Bancorp 24,566 412,954 FirstEnergy Corp. 14,745 411,680 Northrop Grumman Corp. 4,692 408,204 Noble Drilling Corp.+ 8,778 405,192 Tosco Corp. 9,450 404,082 Kerr-McGee Corp.* 6,167 400,238 Cincinnati Financial Corp. 10,495 398,154 Kinder Morgan Inc. 7,480 397,936 Wellpoint Health Networks Inc.+ 4,079 388,769 Charter One Financial Inc. 13,602 384,937 Intuit Inc.+ 13,758 381,785 Teradyne Inc.+ 11,411 376,563 Novellus Systems Inc.+ 9,279 376,379 DTE Energy Co.* 9,320 370,936 Countrywide Credit Industries Inc. 7,511 370,668 Barrick Gold Corp. 25,853 369,439 Ameren Corp.* 8,971 367,362 Gateway Inc.+ 21,219 356,691 Computer Sciences Corp.+ 10,997 355,753 Union Planters Corp. 9,178 353,261 Watson Pharmaceuticals Inc.+ 6,713 353,104 Johnson Controls Inc. 5,609 350,338 Fortune Brands Inc. 10,119 348,094 Cinergy Corp. 10,370 347,913 AMR Corp.+ 9,845 345,756 Conseco Inc.* 21,336 343,510 Old Kent Financial Corp. 9,035 343,330 BMC Software Inc.+ 15,961 343,161 KeySpan Corp. 8,796 335,391 Alamosa Holdings Inc. 7,234 334,645 Aetna Inc.+ 9,287 333,589 LSI Logic Corp.+ 20,901 328,773 Willamette Industries Inc.* 7,142 328,532 Healthsouth Corp.+ 25,289 325,975 Toys R Us Inc.+ 12,962 325,346 Torchmark Corp. 8,235 319,765 Bear Stearns Companies Inc. 6,969 318,762 Delta Air Lines Inc. 8,045 317,778 PG&E Corp. 25,314 315,159 EOG Resources Inc.* 7,632 314,667 Sempra Energy 13,367 311,184 Vulcan Materials Co. 6,603 309,218 Eaton Corp. 4,492 307,702 National Semiconductor Corp.+ 11,434 305,860 Parker Hannifin Corp. 7,600 301,872 St. Jude Medical Inc.+ 5,560 299,406 Block (H & R) Inc.* 5,969 298,808 Kmart Corp.+ 31,591 296,955 Genuine Parts Co. 11,326 293,457 Unisys Corp.+ 20,882 292,348 Brown-Forman Corp. "B" 4,480 277,536 TRW Inc. 8,110 275,740 Penney (J.C.) Company Inc.* 17,144 274,133 Jabil Circuit Inc.+ 12,641 273,298 Edison International 21,276 268,929 Sherwin-Williams Co. 10,480 267,030 Harcourt General Inc. 4,775 265,824 Thermo Electron Corp.+ 11,777 264,747 CenturyTel Inc. 9,182 263,982 Xerox Corp. 43,693 261,721 VF Corp. 7,424 259,840 Tiffany & Co. 9,525 259,556 Winn-Dixie Stores Inc. 9,115 258,593 GPU Inc. 7,941 258,003 - -------------------------------------------------------------------------------- iSHARES SCHEDULES OF INVESTMENTS PAGE 35 iSHARES S&P 500/BARRA VALUE INDEX FUND SCHEDULE OF INVESTMENTS (CONTINUED) MARCH 31, 2001 SECURITY SHARES VALUE - ------------------------------------------------------------------- COMMON STOCKS (CONTINUED) - ------------------------------------------------------------------- Knight Ridder Inc.* 4,782 $ 256,841 Goodrich (B.F.) Co. 6,652 255,237 Pinnacle West Capital Corp. 5,529 253,615 CMS Energy Corp. 8,535 252,551 Hilton Hotels Corp. 24,098 251,824 T Rowe Price Group Inc. 7,920 247,995 Leggett & Platt Inc. 12,818 246,490 Eastman Chemical Co. 5,007 246,445 Avaya Inc.+ 18,907 245,791 Goodyear Tire & Rubber Co.* 10,294 245,512 NCR Corp.+ 6,280 245,108 Sigma-Aldrich Corp. 5,035 241,051 Compuware Corp.+ 24,217 236,116 SAFECO Corp. 8,345 235,225 Huntington Bancshares Inc. 16,413 233,885 Harrah's Entertainment Inc.+ 7,627 224,463 PACCAR Inc. 4,989 223,570 ITT Industries Inc. 5,749 222,774 Citizen Communications Co.+* 17,350 219,477 Whirlpool Corp. 4,355 217,706 Fluor Corp. 4,854 216,003 Engelhard Corp. 8,345 215,802 Donnelley (R.R.) & Sons Co. 7,980 209,236 AutoZone Inc.+ 7,432 208,245 Grainger (W.W.) Inc. 6,143 207,941 Phelps Dodge Corp. 5,137 206,405 Allied Waste Industries Inc.+ 13,067 204,891 Nucor Corp. 5,090 203,956 Cooper Industries Inc. 6,090 203,711 Newmont Mining Corp. 12,546 202,242 Black & Decker Corp. 5,294 194,554 Placer Dome Inc. 21,420 185,283 Stanley Works (The) 5,623 185,278 Darden Restaurants Inc. 7,786 184,918 Sealed Air Corp.+* 5,480 182,648 Sunoco Inc. 5,571 180,668 Niagara Mohawk Holdings Inc.+ 10,517 177,737 Pall Corp. 8,081 177,136 Inco Ltd.+ 11,874 176,091 Ashland Inc. 4,578 175,795 Office Depot Inc.+ 19,496 170,590 Rowan Companies Inc.+ 6,178 169,895 Tektronix Inc.+ 6,187 168,843 Dana Corp. 9,694 166,543 Wendy's International Inc. 7,411 165,414 American Power Conversion Corp.+ 12,736 164,175 Mead Corp. 6,516 163,486 Maytag Corp. 5,017 161,798 Centex Corp. 3,850 160,352 Cabletron Systems Inc.+ 12,420 160,218 Westvaco Corp. 6,599 159,894 Liz Claiborne Inc.* 3,389 159,452 Bausch & Lomb Inc.* 3,487 159,216 Parametric Technology Corp.+ 17,483 158,440 Coors (Adolf) Company "B" 2,388 156,271 Bard (C.R.) Inc. 3,328 151,091 FMC Corp.+ 1,997 147,059 Quintiles Transnational Corp.+ 7,740 146,093 Conexant Systems Inc.+ 16,284 145,538 Hasbro Inc. 11,235 144,932 Alberto-Culver Co.* 3,643 144,481 Temple-Inland Inc. 3,222 142,574 Circuit City Stores Inc. 13,439 142,453 International Flavors & Fragrances Inc. 6,401 141,206 Manor Care Inc.+ 6,809 138,904 Nordstrom Inc. 8,529 138,852 Visteon Corp. 8,518 128,111 Dillards Inc. "A" 5,828 127,866 Freeport-McMoRan Copper & Gold Inc.+ 9,675 126,259 Pactiv Corp.+ 10,399 125,932 Boise Cascade Corp. 3,746 117,624 Humana Inc.+ 11,031 115,605 SUPERVALU Inc. 8,612 114,798 Bemis Co. 3,468 114,756 Meredith Corp. 3,269 114,121 Autodesk Inc. 3,716 113,570 Deluxe Corp. 4,756 112,575 Brunswick Corp. 5,716 112,205 NICOR Inc. 3,004 111,959 Snap-On Inc. 3,807 110,860 Pulte Corp. 2,651 107,127 Novell Inc.+ 20,994 104,970 Crane Co. 3,943 102,715 Cummins Engine Company Inc. 2,711 101,771 Great Lakes Chemical Corp. 3,262 100,274 KB HOME 2,880 94,003 Reebok International Ltd.+ 3,742 93,026 Hercules Inc.* 7,042 91,476 - -------------------------------------------------------------------------------- PAGE 36 iShares iSHARES S&P 500/BARRA VALUE INDEX FUND SCHEDULE OF INVESTMENTS (CONTINUED) MARCH 31, 2001 SHARES OR SECURITY PRINCIPAL VALUE - ------------------------------------------------------------------- COMMON STOCKS (CONTINUED) - ------------------------------------------------------------------- Allegheny Technologies Inc. 5,253 $ 91,455 Homestake Mining Company 17,332 91,166 Peoples Energy Corp. 2,307 89,673 Navistar International Corp.+ 3,870 88,236 Ball Corp. 1,861 85,364 USX-U.S. Steel Group Inc. 5,779 84,894 ONEOK Inc. 1,912 78,182 Andrew Corp.+ 5,349 76,892 Consolidated Stores Corp.+ 7,300 73,365 Longs Drug Stores Corp. 2,439 72,097 Ryder System Inc. 3,900 70,161 Thomas & Betts Corp. 3,783 65,673 Louisiana-Pacific Corp. 6,804 65,386 National Service Industries Inc. 2,664 62,471 Timken Co. 3,969 62,115 Sapient Corp.+ 8,439 60,655 Potlatch Corp. 1,867 59,651 Adaptec Inc.+ 6,452 55,951 Cooper Tire & Rubber Co. 4,734 53,731 Briggs & Stratton Corp. 1,398 53,641 Worthington Industries Inc. 5,603 52,108 McDermott International Inc. 3,916 49,537 American Greetings Corp. "A" 4,003 42,432 BroadVision Inc.+* 3,807 20,344 - ------------------------------------------------------------------- TOTAL COMMON STOCKS (Cost: $394,074,894) 367,351,694 - ------------------------------------------------------------------- SHORT TERM INSTRUMENTS - 7.45% - ------------------------------------------------------------------- Dreyfus Money Market Fund++ $10,542,487 10,542,487 Federal National Mortgage Association Discount Note 4.77%, 04/05/01++ 2,254,325 2,254,325 Goldman Sachs Financial Square Prime Obligation Fund++ 5,058,067 5,058,067 Providian Temp Cash Money Market Fund++ 9,538,440 9,538,440 - ------------------------------------------------------------------- TOTAL SHORT TERM INSTRUMENTS (Cost: $27,393,319) 27,393,319 - ------------------------------------------------------------------- SECURITY PRINCIPAL VALUE - ------------------------------------------------------------------- REPURCHASE AGREEMENT - 0.03% - ------------------------------------------------------------------- Investors Bank & Trust Tri-Party Repurchase Agreement, dated 03/30/01, due 04/02/01, with a maturity value of $93,096 and an effective yield of 4.90%. $ 93,058 $ 93,058 - ------------------------------------------------------------------- TOTAL REPURCHASE AGREEMENT (Cost: $93,058) 93,058 - ------------------------------------------------------------------- TOTAL INVESTMENTS IN SECURITIES -- 107.38% (Cost $421,561,271) 394,838,071 - ------------------------------------------------------------------- Other Assets, Less Liabilities -- (7.38%) (27,134,242) - ------------------------------------------------------------------- NET ASSETS -- 100.00% $367,703,829 =================================================================== * Denotes all or part of security on loan. See Note 5. + Non-income earning securities. ++ Represents investment of collateral received from securities lending transactions. See Note 5. SEE NOTES TO FINANCIAL STATEMENTS. - -------------------------------------------------------------------------------- iSHARES SCHEDULES OF INVESTMENTS PAGE 37 iSHARES S&P MIDCAP 400 INDEX FUND SCHEDULE OF INVESTMENTS MARCH 31, 2001 SECURITY SHARES VALUE - ------------------------------------------------------------------ COMMON STOCKS - 100.41% - ------------------------------------------------------------------ Genzyme Corp. - General Division+* 19,271 $ 1,740,747 Electronic Arts Inc.+* 26,997 1,464,587 M&T Bank Corp.* 19,627 1,371,927 SunGard Data Systems Inc.+ 26,984 1,328,422 Millennium Pharmaceuticals Inc.+ 43,159 1,314,623 DST Systems Inc.+* 25,364 1,222,291 Waters Corp.+ 26,247 1,219,173 BJ Services Co.+ 16,681 1,187,687 IDEC Pharmaceuticals Corp.+* 29,111 1,164,440 R.J. Reynolds Tobacco Holdings Inc. 20,718 1,162,280 Telephone & Data Systems Inc. 11,940 1,116,390 Washington Post Company (The) "B" 1,914 1,106,292 Marshall & Ilsley Corp. 20,884 1,102,884 Weatherford International Inc.+ 22,320 1,101,492 National Commerce Bancorp 41,708 1,034,880 IVAX Corporation+ 32,378 1,019,907 ENSCO International Inc. 28,121 984,235 Atmel Corp.+ 94,642 928,675 Cadence Design Systems Inc.+ 49,912 922,873 Zions Bancorp 17,658 919,805 Jones Apparel Group Inc.+* 24,235 916,083 Global Marine Inc.+ 35,747 915,123 NVIDIA Corp.+* 13,791 895,338 Family Dollar Stores Inc. 34,770 893,589 North Fork Bancorp 33,228 862,267 Broadwing Inc.+ 43,878 840,264 Quest Diagnostics Inc.+ 9,377 833,334 American Standard Companies Inc.+ 14,071 831,174 TECO Energy Inc. 27,090 811,616 First Tennessee National Corp. 26,159 808,313 Health Management Associates Inc. "A"+ 49,460 769,103 Apollo Group Inc. "A"+ 23,205 761,414 International Game Technology Inc.+ 14,891 749,762 Litton Industries Inc.+ 9,297 746,828 Rational Software Corp.+ 41,272 732,578 DPL Inc. 25,949 729,167 Utilicorp United Inc. 22,400 724,864 Dime Bancorp Inc. 22,029 721,450 Smith International Inc.+ 10,245 719,199 BJ's Wholesale Club Inc.+* 14,702 703,491 SEI Investment Co. 22,038 687,310 Express Scripts Inc. "A"+ 7,866 681,825 Old Republic International Corp. 23,908 678,987 Microchip Technology Inc.+ 26,458 669,718 Greenpoint Financial Corp. 20,504 668,430 Affiliated Computer Services Inc. "A"+ 10,143 658,281 Mylan Laboratories Inc. 25,366 655,711 Abercrombie & Fitch Co. "A"+ 20,051 655,668 American Water Works Inc. 19,992 644,742 Integrated Device Technology Inc.+* 21,706 642,715 Symantec Corp.+ 15,356 642,073 Ultramar Diamond Shamrock Corp. 17,659 638,903 Radian Group Inc. 9,394 636,444 Bisys Group Inc.+* 11,637 621,852 Gilead Sciences Inc.+* 19,092 620,490 Everest Re Group Ltd. 9,311 619,368 Park Place Entertainment Corp.+ 60,379 618,885 Neuberger Berman Inc. 9,913 616,688 TCF Financial Corp. 16,315 616,544 Hillenbrand Industries Inc. 12,686 612,607 Murphy Oil Corp. 9,152 609,340 Tyson Foods Inc. "A"* 45,122 607,793 Edwards (A.G.) Inc. 16,314 603,618 Cooper Cameron Corp.+ 10,950 591,300 Lam Research Corp.+* 24,877 590,829 Banknorth Group Inc. 29,401 584,345 McCormick & Co. Inc. 13,904 583,829 PMI Group Inc. (The) 8,982 583,650 Synopsys Inc.+ 12,336 579,021 SCANA Corp. 21,262 577,263 Readers Digest Association Inc. (The) "A" 20,901 574,359 National-Oilwell Inc.+ 16,370 566,893 Ocean Energy Inc. 34,019 563,014 Brinker International Inc.+ 20,130 561,828 SPX Corp.+* 6,176 560,534 Lincare Holdings Inc.+ 10,585 560,343 Allmerica Financial Corp. 10,786 559,686 Vishay Intertechnology Inc.+ 28,005 557,300 CDW Computer Centers Inc.+ 17,707 548,917 Hormel Foods Corp. 28,133 548,031 Astoria Financial Corp. 10,137 541,696 SCI Systems Inc.+ 29,639 539,430 L-3 Communications Holdings Inc.+ 6,810 537,650 Equitable Resources Inc. 7,760 535,440 Oxford Health Plans Inc.+ 19,974 534,305 Legg Mason Inc. 12,657 532,860 Wisconsin Energy Corp. 24,571 530,242 Potomac Electric Power Co.* 22,603 528,458 - -------------------------------------------------------------------------------- PAGE 38 iShares iSHARES S&P MIDCAP 400 INDEX FUND SCHEDULE OF INVESTMENTS (CONTINUED) MARCH 31, 2001 SECURITY SHARES VALUE - ------------------------------------------------------------------ COMMON STOCKS (CONTINUED) - ------------------------------------------------------------------ AmeriCredit Corp.+ 16,252 $ 527,052 Expeditors International Washington Inc. 10,429 526,013 Mercantile Bankshares Corp. 14,194 525,178 Compass Bancshares Inc. 24,562 525,013 Amerisource Health Corp. "A"+* 10,680 523,854 Tidewater Inc. 11,354 513,201 International Rectifier Corp.+* 12,649 512,285 Health Net Inc.+ 24,849 512,138 Westwood One Inc.+ 22,227 511,666 Alliant Energy Corp. 16,045 510,552 Lennar Corp. 12,808 510,527 Northeast Utilities 29,152 506,662 Sepracor Inc.+* 15,761 504,352 PepsiAmericas Inc. 32,316 504,130 Unitrin Inc. 13,740 499,793 Ceridian Corp.+ 34,700 487,535 Micrel Inc.+ 17,291 483,067 Waddell & Reed Financial Inc. "A"* 17,006 482,120 Bowater Inc. 10,163 481,726 MDU Resources Group Inc. 13,354 477,005 Noble Affiliates Inc. 11,361 474,095 Cypress Semiconductor Corp.+ 26,695 473,302 MCN Energy Group Inc. 18,310 472,398 Beckman Coulter Inc. 12,076 472,051 Helmerich & Payne Inc. 10,175 471,102 CH Robinson Worldwide Inc. 17,157 469,673 Georgia-Pacific (Timber Group) 16,338 468,901 Energizer Holdings Inc.+ 18,625 465,625 FirstMerit Corp. 17,810 463,060 Tootsie Roll Industries Inc. 10,004 461,705 CheckFree Corp.+ 15,484 455,810 Bergen Brunswig Corp. "A" 27,446 455,604 E*trade Group Inc.+* 64,640 451,187 Associated Bancorp 13,560 450,870 Arrow Electronics Inc.+ 19,945 450,757 Hibernia Corp. "A" 32,192 449,722 Chris-Craft Industries Inc.+ 7,104 449,328 Questar Corp. 16,354 448,100 Viad Corp. 18,721 446,121 Manpower Inc. 15,375 442,800 Gallagher (Arthur J.) & Co. 15,976 442,535 Valero Energy Corp. 12,390 439,845 Macrovision Corp.+ 10,077 438,979 CSG Systems International Inc.+ 10,656 438,894 Vertex Pharmaceuticals Inc.+ 11,980 438,768 Sonoco Products Co. 20,195 434,193 Apogent Technologies Inc.+ 21,383 432,792 National Fuel Gas Co. 8,021 429,765 DeVry Inc.+ 14,142 424,967 Cabot Corp. 13,466 424,179 Jack Henry & Associates Inc. 17,907 424,172 First Health Group Corp.+ 9,662 423,920 Sovereign Bancorp Inc. 49,967 423,158 Hispanic Broadcasting Corp.+ 22,101 422,129 Dollar Tree Stores Inc.+ 21,910 422,110 Fastenal Co.* 7,700 419,650 ChoicePoint Inc.+ 12,358 417,700 Energy East Corp. 23,847 413,745 NSTAR 10,764 412,261 GATX Corporation 9,699 411,820 ICN Pharmaceuticals Inc. 16,168 411,152 Barr Laboratories Inc.+ 7,173 410,080 American Eagle Outfitters Inc.+ 14,141 406,554 First Virginia Banks Inc. 9,368 406,290 Martin Marietta Materials Inc. 9,496 405,479 Semtech Corp.+* 13,657 402,028 Protective Life Corp. 13,104 401,900 Omnicare Inc. 18,710 401,330 International Speedway Corp. "A"* 10,782 399,608 Diebold Inc. 14,523 398,802 Puget Energy, Inc. 17,384 397,746 Outback Steakhouse Inc.+* 15,585 396,794 Lattice Semiconductor Corp.+ 21,811 396,688 Varco International Inc.+ 19,178 396,026 ALLETE 15,310 395,304 3Com Corp.+ 69,063 394,954 Galileo International Inc. 18,006 394,331 Conectiv Inc. 17,987 393,016 Trigon Healthcare Inc.+ 7,620 392,430 Protein Design Labs Inc.+* 8,797 391,467 Wilmington Trust Corp. 6,573 388,333 RF Micro Devices Inc.+ 33,130 387,207 True North Communications Inc. 10,186 384,522 Avnet Inc.* 18,739 384,149 Dun & Bradstreet Corp.+ 16,267 383,251 Dentsply International Inc. 10,463 381,899 Minimed Inc.+ 13,098 380,661 Hanover Compressor Co.+* 11,992 380,146 - -------------------------------------------------------------------------------- iSHARES SCHEDULES OF INVESTMENTS PAGE 39 iSHARES S&P MIDCAP 400 INDEX FUND SCHEDULE OF INVESTMENTS (CONTINUED) MARCH 31, 2001 SECURITY SHARES VALUE - ------------------------------------------------------------------ COMMON STOCKS (CONTINUED) - ------------------------------------------------------------------ Belo (A.H.) Corp. 23,066 $ 379,897 Lear Corp.+ 12,935 378,996 Grant Prideco Inc. + 22,027 378,864 Acxiom Corp.+ 18,116 378,172 Saks Inc.+ 28,747 373,711 City National Corp. 9,713 373,076 Catalina Marketing Corp.+ 11,274 367,194 Labranche & Co. Inc.+ 11,416 367,139 IndyMac Bancorp Inc.+ 12,746 366,320 OGE Energy Corp. 15,812 363,518 Leucadia National Corp. 11,218 360,883 Entercom Communications Corp.+ 9,181 360,813 Herman Miller Inc. 15,543 359,432 Reynolds & Reynolds Co. "A" 18,624 358,512 Investors Financial Services Corp. 6,103 357,788 Quantum DLT & Storage Group+ 30,703 356,155 IBP Inc. 21,446 351,714 Wind River Systems Inc.+* 15,083 350,680 Newport News Shipbuilding Inc. 7,170 350,613 Gentex Corp.+ 15,052 348,077 Precision Castparts Corp. 10,399 343,687 Lyondell Chemical Co. 23,876 343,098 Western Resources Inc. 14,206 338,813 MONY Group Inc. 10,151 337,013 Clayton Homes Inc. 27,943 336,713 National Instruments Corp.+ 10,294 335,842 Callaway Golf Co. 15,062 334,527 DQE Inc. 11,360 331,144 Harris Corp. 13,357 330,586 Investment Technology Group Inc.+ 6,400 327,680 Dallas Semiconductor Corp. 12,488 324,813 American Financial Group Inc. 13,458 324,338 Tech Data Corp.+ 10,918 322,081 Lubrizol Corp. 10,582 320,635 Teleflex Inc. 7,756 317,608 Valassis Communications Inc.+ 10,876 315,404 Neiman-Marcus Group Inc. "A"+ 9,652 314,655 Pioneer Natural Resources Co.+ 19,985 313,765 Barnes & Noble Inc.+ 13,094 312,947 Jacobs Engineering Group Inc.+ 5,364 311,112 Mandalay Resort Group Inc.+ 15,493 309,395 Six Flags Inc.+* 15,988 309,368 Kansas City Power & Light Co.* 12,564 309,074 Ross Stores Inc. 16,448 308,400 Harte-Hanks Inc. 13,628 308,265 Pacific Century Financial Corp. 16,192 307,648 Marine Drilling Co. Inc.+ 11,519 306,981 Sensormatic Electronics Corp.+ 15,966 303,354 Williams-Sonoma Inc.+ 11,525 302,531 Montana Power Co. 21,451 302,459 KEMET Corp.+ 17,793 301,413 Mohawk Industries Inc.+ 10,650 299,052 Informix Corp.+ 56,772 298,053 Webster Financial Corp. 9,933 291,161 Vectren Corporation 13,571 290,419 IDACorp Inc. 7,595 290,205 IMC Global Inc. 23,298 286,565 CNF Transportation Inc. 9,861 284,884 Roslyn Bancorp Inc. 12,500 281,250 HON Industries Inc. 12,223 280,762 Hubbell Inc. "B" 12,031 280,322 Westamerica Bancorp 7,409 279,690 Provident Financial Group Inc. 9,903 278,522 SanDisk Corp.+ 13,652 278,160 Payless Shoesource Inc.+ 4,449 276,950 Sybase Inc.+ 17,812 276,086 Lee Enterprises Inc. 8,878 270,335 Mentor Graphics Corp.+ 13,103 270,249 Houghton Mifflin Co. 5,864 269,803 Borders Group Inc.+ 15,970 268,775 Suiza Foods Corp.+ 5,514 265,168 Cytec Industries Inc.+ 8,164 261,411 WGL Holdings Inc. 9,431 260,767 Quanta Services Inc.+* 11,594 258,778 Apria Healthcare Group Inc.+ 10,673 258,073 Crompton Corp. 22,869 256,133 Solutia Inc. 20,988 256,054 Scholastic Corp.+ 7,071 254,998 Pentair Inc. 9,883 251,819 COR Therapeutics Inc.+* 11,052 248,670 Valspar Corp. 8,648 248,111 Hawaiian Electric Industries Inc. 6,670 246,456 Comdisco Inc. 30,727 245,816 Dean Foods Co. 7,231 244,842 NOVA Corporation+ 13,268 244,662 AGL Resources Inc. 11,011 241,251 Emmis Communications Corp.+* 9,530 241,228 Dial Corp. 19,263 240,787 - -------------------------------------------------------------------------------- PAGE 40 iShares iSHARES S&P MIDCAP 400 INDEX FUND SCHEDULE OF INVESTMENTS (CONTINUED) MARCH 31, 2001 SECURITY SHARES VALUE - ------------------------------------------------------------------ COMMON STOCKS (CONTINUED) - ------------------------------------------------------------------ Donaldson Co. Inc. 8,997 $ 240,130 Cirrus Logic Inc.+ 16,046 239,687 Furniture Brands International Inc.+ 10,072 238,706 Swift Transportation Co. Inc.+* 12,833 237,411 TriQuint Semiconductor Inc.+ 15,933 236,008 Sierra Pacific Resources Corp. 15,934 235,823 Advanced Fibre Communications Inc.+ 16,383 234,482 Edwards Lifesciences Corp.+ 11,918 233,593 United Rentals Inc.+ 14,278 233,160 Silicon Valley Bancshares+* 9,920 233,120 EGL Inc.+ 9,492 231,368 Network Associates Inc.+ 27,956 230,637 Storage Technology Corp.+ 21,140 230,215 Public Service Company of New Mexico* 7,933 230,136 Carter-Wallace Inc. 9,182 228,724 Pittston Brink's Group 10,502 227,893 Rayonier Inc. 5,503 227,274 Sensient Technologies Corp. 9,909 225,727 Credence Systems Corp.+ 10,925 223,962 Pennzoil-Quaker State Co. 15,966 223,524 Lancaster Colony Corp. 7,653 222,415 Quorum Health Group Inc.+ 14,551 220,993 Transwitch Corp.+ 16,777 220,198 Blyth Inc. 9,543 219,966 AK Steel Holding Corp. 21,861 219,703 Sotheby's Holdings Inc. "A"+ 11,958 219,668 Atlas Air Inc.+ 7,766 218,613 Universal Corporation 5,510 217,259 Greater Bay Bancorp* 8,565 215,731 Plexus Corp.+* 8,361 214,251 York International Corp. 7,729 213,939 Legato Systems Inc.+ 17,723 213,784 Media General Inc. "A" 4,629 213,397 Cabot Microelectronics Corp.+ 4,848 213,312 Black Hills Corp. 4,664 213,191 Borg-Warner Automotive Inc. 5,311 212,812 Newport Corp.* 7,260 212,428 Overseas Shipholding Group Inc. 7,727 212,415 VISX Inc.+ 12,353 212,101 RPM Inc. 20,760 211,752 Albemarle Corp. 9,315 209,122 Cleco Corp. 4,559 207,207 CBRL Group Inc. 11,390 207,156 Polycom Inc.+ 16,600 205,425 Carlisle Companies Inc. 6,157 200,841 Incyte Genomics Inc.+ 13,028 199,980 Harsco Corp. 8,116 198,923 Steris Corp.+ 13,956 196,780 ADTRAN Inc.+ 8,011 196,770 Titan Corp. (The)+ 10,925 196,322 Price Communications Corp.+ 11,280 194,129 Avocent Corporation+* 8,867 193,411 Macromedia Inc.+ 11,970 192,268 Granite Construction Inc. 5,538 188,181 GTECH Holdings Corp.+ 6,905 188,161 Tecumseh Products Co. "A" 3,820 184,793 ArvinMeritor Inc. 13,313 182,787 Retek Inc.+* 9,705 182,575 Dole Food Co. 11,342 182,379 Olin Corp. 8,943 182,348 Keane Inc.+ 14,005 182,065 MIPS Technologies Inc. "B"+ 7,880 181,240 Superior Industries International Inc. 5,239 181,112 AMETEK Inc. 6,520 179,952 Federal Signal Corp. 9,202 179,715 Plantronics Inc.+ 9,991 177,540 Claire's Stores Inc. 9,932 175,796 Alexander & Baldwin Inc. 8,216 175,617 Powerwave Technologies Inc.+ 12,839 174,931 CommScope Inc.+ 10,400 173,472 PacifiCare Health Systems Inc. "A"+* 6,944 172,732 Nordson Corp. 6,604 171,704 Kelly Services Inc. "A" 7,265 171,309 Flowserve Corp.+ 7,594 170,409 Church & Dwight Co. Inc. 7,836 170,276 Kennametal Inc. 6,187 170,143 Covanta Energy Corporation+ 10,083 169,394 Kaydon Corp. 6,076 163,930 Lands' End Inc.+* 5,921 162,531 Imation Corp.+ 7,151 160,397 Interstate Bakeries Corp. 10,232 156,345 Sylvan Learning Systems Inc.+ 7,561 155,946 Sawtek Inc.+ 8,658 154,221 Modine Manufacturing Co. 5,971 153,753 Covance Inc.+ 11,731 150,743 Wisconsin Central Transportation Corp.+* 9,418 150,099 Dreyer's Grand Ice Cream Inc. 5,723 148,440 Perrigo Co.+ 14,888 147,019 - -------------------------------------------------------------------------------- iSHARES SCHEDULES OF INVESTMENTS PAGE 41 iSHARES S&P MIDCAP 400 INDEX FUND SCHEDULE OF INVESTMENTS (CONTINUED) MARCH 31, 2001 SECURITY SHARES VALUE - ------------------------------------------------------------------ COMMON STOCKS (CONTINUED) - ------------------------------------------------------------------ Trinity Industries Inc. 7,482 $ 145,899 Horace Mann Educators Corp. 8,235 145,760 Minerals Technologies Inc. 4,122 144,064 Ferro Corp. 6,957 141,436 Alaska Air Group Inc.+ 5,360 137,752 Longview Fibre Co. 10,429 135,577 Wausau-Mosinee Paper Corp. 10,404 135,252 USG Corp.* 8,800 134,464 Wallace Computer Services Inc. 8,216 133,510 NCO Group Inc.+ 5,213 133,257 Mastec Inc.+ 9,659 130,493 Smucker (J.M) Company (The) 4,921 128,930 Ruddick Corp. 9,401 128,794 Infocus Corp.+ 7,812 127,922 Korn/Ferry International+ 7,593 127,335 Bob Evans Farms Inc. 7,068 125,457 Carpenter Technology Corp. 4,468 125,327 Stewart & Stevenson Services Inc. 5,683 123,605 Fuller (H. B.) Co. 2,882 121,404 Banta Corp. 4,978 120,716 Rollins Inc. 6,105 117,827 AGCO Corp. 12,099 116,150 Albany International Corp. "A"+ 6,238 114,779 Ohio Casualty Corp. 12,193 114,690 Bandag Inc. 4,192 112,262 Hunt (J.B.) Transport Services Inc.+ 7,126 111,344 Papa John's International Inc.+* 4,651 110,752 Gartner Group Inc. "B"+ 17,554 110,590 Dycom Industries Inc.+ 8,541 110,179 Glatfelter (P.H.) Co. 8,609 109,679 Airgas Inc.+ 13,793 108,689 UCAR International Inc.+* 9,157 106,221 Structural Dynamics Research Corp.+ 7,201 102,277 Airborne Inc. 9,756 99,219 Westpoint Stevens Inc.* 10,032 90,288 Modis Professional Services Inc.+ 19,600 90,160 DSP Group Inc.+ 5,498 85,219 Sequa Corp. "A"+ 2,117 82,563 Unifi Inc.+ 10,907 77,331 Schulman (A.) Inc. 5,933 70,825 Lance Inc. 5,879 66,139 ANTEC Corp.+ 7,743 56,379 Transaction Systems Architects Inc. "A"+ 7,375 52,777 SHARES OR SECURITY PRINCIPAL VALUE - ------------------------------------------------------------------ NCH Corp. 1,085 $ 51,668 Ryerson Tull Inc. 5,037 50,622 Lone Star Steakhouse & Saloon Inc. 5,072 47,075 Sykes Enterprises Inc.+ 8,222 44,964 MAXXAM Inc.+ 1,373 17,849 - ------------------------------------------------------------------ TOTAL COMMON STOCKS (Cost: $184,957,563) 156,640,129 - ------------------------------------------------------------------ SHORT TERM INSTRUMENTS - 10.51% - ------------------------------------------------------------------ Dreyfus Money Market Fund++ $6,309,726 6,309,726 Federal National Mortgage Association Discount Note 4.77%, 04/05/01++ 1,542,224 1,542,224 Goldman Sachs Financial Square Prime Obligation Fund++ 2,834,275 2,834,275 Providian Temp Cash Money Market Fund++ 5,708,800 5,708,800 - ------------------------------------------------------------------ TOTAL SHORT TERM INSTRUMENTS (Cost: $16,395,025) 16,395,025 - ------------------------------------------------------------------ REPURCHASE AGREEMENT - 0.04% - ------------------------------------------------------------------ Investors Bank & Trust Tri-Party Repurchase Agreement, dated 03/30/01, due 04/02/01, with a maturity value of $62,201 and an effective yield of 4.90%. 62,176 62,176 - ------------------------------------------------------------------ TOTAL REPURCHASE AGREEMENT (Cost: $62,176) 62,176 - ------------------------------------------------------------------ TOTAL INVESTMENTS IN SECURITIES -- 110.96% (Cost $201,414,764) 173,097,330 - ------------------------------------------------------------------ Other Assets, Less Liabilities -- (10.96%) (17,092,462) - ------------------------------------------------------------------ NET ASSETS -- 100.00% $156,004,868 ================================================================== * Denotes all or part of security on loan. See Note 5. + Non-income earning securities. ++ Represents investment of collateral received from securities lending transactions. See Note 5. SEE NOTES TO FINANCIAL STATEMENTS. - -------------------------------------------------------------------------------- PAGE 42 iShares iSHARES S&P MIDCAP 400/BARRA GROWTH INDEX FUND SCHEDULE OF INVESTMENTS MARCH 31, 2001 SECURITY SHARES VALUE - ------------------------------------------------------------------ COMMON STOCKS - 100.34% - ------------------------------------------------------------------ Genzyme Corp. - General Division* 45,431 $ 4,103,782 Electronic Arts Inc.+ 63,688 3,455,074 SunGard Data Systems Inc.+ 63,650 3,133,490 Millennium Pharmaceuticals Inc.+ 101,774 3,100,036 DST Systems Inc.+ 59,788 2,881,184 Waters Corp.+ 61,907 2,875,580 BJ Services Co.+ 39,321 2,799,655 IDEC Pharmaceuticals Corp.+* 68,646 2,745,840 Washington Post Company (The) "B" 4,525 2,615,450 National Commerce Bancorp 98,354 2,440,409 IVAX Corporation+ 76,337 2,404,615 Cadence Design Systems Inc.+ 117,699 2,176,255 Global Marine Inc.+ 84,310 2,158,336 NVIDIA Corp.+* 32,507 2,110,415 Family Dollar Stores Inc. 82,016 2,107,811 Quest Diagnostics Inc.+ 22,127 1,966,426 American Standard Companies Inc.+ 33,199 1,961,065 Health Management Associates Inc. "A"+ 116,642 1,813,783 Apollo Group Inc. "A"+ 54,733 1,795,927 International Game Technology Inc.+ 35,122 1,768,393 Rational Software Corp.+ 97,322 1,727,465 DPL Inc. 61,184 1,719,270 Smith International Inc.+ 24,140 1,694,628 BJ's Wholesale Club Inc.+ 34,667 1,658,816 SEI Investment Co. 51,997 1,621,656 Express Scripts Inc. "A"+ 18,576 1,610,168 Microchip Technology Inc.+ 62,407 1,579,677 Affiliated Computer Services Inc. "A"+ 23,925 1,552,732 Abercrombie & Fitch Co. "A"+ 47,296 1,546,579 Integrated Device Technology Inc.+* 51,163 1,514,936 Symantec Corp.+ 36,221 1,514,491 Bisys Group Inc.+* 27,426 1,465,577 Gilead Sciences Inc.+ 45,054 1,464,255 TCF Financial Corp. 38,491 1,454,575 Neuberger Berman Inc. 23,354 1,452,852 Hillenbrand Industries Inc. 29,903 1,444,016 Cooper Cameron Corp.+ 25,836 1,395,144 McCormick & Co. Inc. 32,805 1,377,482 Synopsys Inc.+ 29,088 1,365,318 Readers Digest Association Inc. (The) "A" 49,303 1,354,846 National-Oilwell Inc.+ 38,600 1,336,718 Brinker International Inc.+ 47,458 1,324,553 SPX Corp.+* 14,577 1,323,009 Lincare Holdings Inc.+ 24,947 1,320,632 CDW Computer Centers Inc.+ 41,779 1,295,149 L-3 Communications Holdings Inc.+* 16,057 1,267,700 Oxford Health Plans Inc.+ 47,071 1,259,149 Legg Mason Inc. 29,844 1,256,432 Expeditors International Washington Inc. 24,618 1,241,670 Amerisource Health Corp. "A"+* 25,178 1,234,981 Sepracor Inc.+* 37,169 1,189,408 Micrel Inc.+ 40,797 1,139,766 Waddell & Reed Financial Inc. "A"* 40,088 1,136,495 Beckman Coulter Inc. 28,462 1,112,580 CH Robinson Worldwide Inc. 40,445 1,107,182 Georgia-Pacific (Timber Group) 38,532 1,105,868 Tootsie Roll Industries Inc. 23,581 1,088,283 Manpower Inc. 36,271 1,044,605 Gallagher (Arthur J.) & Co. 37,685 1,043,874 CSG Systems International Inc.+ 25,144 1,035,619 Vertex Pharmaceuticals Inc.+ 28,261 1,035,059 Macrovision Corp.+ 23,758 1,034,958 Apogent Technologies Inc.+ 50,454 1,021,189 DeVry Inc.+ 33,374 1,002,889 First Health Group Corp.+ 22,800 1,000,350 Jack Henry & Associates Inc. 42,225 1,000,205 Dollar Tree Stores Inc.+* 51,674 995,532 Fastenal Co.+* 18,162 989,829 ChoicePoint Inc.+ 29,162 985,676 ICN Pharmaceuticals Inc. 38,129 969,620 Barr Laboratories Inc.+ 16,918 967,202 American Eagle Outfitters Inc.+ 33,357 959,014 Semtech Corp.+* 32,191 947,623 Galileo International Inc. 42,492 930,575 Protein Design Labs Inc.+* 20,733 922,618 Wilmington Trust Corp. 15,497 915,563 RF Micro Devices Inc.+* 78,099 912,782 True North Communications Inc. 24,038 907,435 Dun & Bradstreet Corp.+ 38,384 904,327 Dentsply International Inc. 24,661 900,126 Minimed Inc.+ 30,890 897,741 Hanover Compressor Co.+* 28,304 897,237 Grant Prideco Inc. + 51,979 894,039 Acxiom Corp.+ 42,721 891,801 Catalina Marketing Corp.+ 26,596 866,232 Labranche & Co. Inc.+ 26,886 864,654 Herman Miller Inc. 36,632 847,115 Investors Financial Services Corp. 14,398 844,083 Quantum DLT & Storage Group+ 72,390 839,724 Wind River Systems Inc.+* 35,577 827,165 Newport News Shipbuilding Inc. 16,905 826,654 Gentex Corp.+ 35,525 821,516 - -------------------------------------------------------------------------------- iSHARES SCHEDULES OF INVESTMENTS PAGE 43 iSHARES S&P MIDCAP 400/BARRA GROWTH INDEX FUND SCHEDULE OF INVESTMENTS (CONTINUED) MARCH 31, 2001 SECURITY SHARES VALUE - ------------------------------------------------------------------ COMMON STOCKS (CONTINUED) - ------------------------------------------------------------------ National Instruments Corp.+ 24,275 $ 791,972 Investment Technology Group Inc.+ 15,090 772,608 Dallas Semiconductor Corp. 29,447 765,916 Valassis Communications Inc.+ 25,642 743,618 Ross Stores Inc. 38,795 727,406 Marine Drilling Co. Inc.+ 27,147 723,468 Informix Corp.+ 133,946 703,216 Westamerica Bancorp 17,472 659,568 SanDisk Corp.+ 32,227 656,625 Payless Shoesource Inc.+ 10,497 653,438 Sybase Inc.+ 41,982 650,721 Mentor Graphics Corp.+ 30,919 637,704 Lee Enterprises Inc. 20,931 637,349 Apria Healthcare Group Inc.+ 25,163 608,441 Solutia Inc. 49,523 604,181 Scholastic Corp.+ 16,693 601,991 COR Therapeutics Inc.+* 26,062 586,395 NOVA Corporation+ 31,278 576,766 Dial Corp. 45,454 568,175 Donaldson Co. Inc. 21,200 565,828 Cirrus Logic Inc.+ 37,839 565,220 TriQuint Semiconductor Inc.+ 37,580 556,654 Silicon Valley Bancshares+ 23,410 550,135 EGL Inc.+ 22,383 545,586 Carter-Wallace Inc. 21,669 539,775 Blyth Inc. 22,531 519,340 Transwitch Corp.+ 39,546 519,041 Sotheby's Holdings Inc. "A"+ 28,225 518,493 Greater Bay Bancorp 20,204 508,888 Plexus Corp.+ 19,734 505,684 Cabot Microelectronics Corp.+ 11,411 502,084 Black Hills Corp. 10,983 502,033 Newport Corp.*+ 17,125 501,077 VISX Inc.+ 29,110 499,819 Polycom Inc.+ 39,140 484,358 ADTRAN Inc.+ 18,891 464,010 Titan Corp. (The)+ 25,795 463,536 Price Communications Corp.+ 26,602 457,820 Macromedia Inc.+ 28,171 452,497 Retek Inc.+ 22,913 431,051 MIPS Technologies Inc. "B"+ 18,577 427,271 Plantronics Inc.+ 23,548 418,448 Powerwave Technologies Inc.+ 30,265 412,361 Nordson Corp. 15,557 404,482 Church & Dwight Co. Inc. 18,472 401,397 SHARES OR SECURITY PRINCIPAL VALUE - ------------------------------------------------------------------ Sawtek Inc.+ 20,408 $ 363,518 Dreyer's Grand Ice Cream Inc. 13,517 350,597 Infocus Corp.+ 18,421 301,644 Korn/Ferry International+ 17,936 300,787 Rollins Inc. 14,384 277,611 Papa John's International Inc.+* 10,988 261,652 Gartner Group Inc. "B"+ 41,380 260,694 Dycom Industries Inc.+ 20,148 259,909 UCAR International Inc.+ 21,624 250,838 Westpoint Stevens Inc.* 23,682 213,138 Flowers Industries Inc. 5 83 - ------------------------------------------------------------------ TOTAL COMMON STOCKS (Cost: $187,834,952) 162,639,132 - ------------------------------------------------------------------ SHORT TERM INSTRUMENTS - 9.87% - ------------------------------------------------------------------ Dreyfus Money Market Fund++ $6,155,022 6,155,022 Federal National Mortgage Association Discount Note 4.77%, 04/05/01++ 1,316,143 1,316,143 Goldman Sachs Financial Square Prime Obligation Fund++ 2,953,052 2,953,052 Providian Temp Cash Money Market Fund++ 5,568,830 5,568,830 - ------------------------------------------------------------------ TOTAL SHORT TERM INSTRUMENTS (Cost: $15,993,047) 15,993,047 - ------------------------------------------------------------------ REPURCHASE AGREEMENT - 0.01% - ------------------------------------------------------------------ Investors Bank & Trust Tri-Party Repurchase Agreement, dated 03/30/01, due 04/02/01, with a maturity value of $22,882 and an effective yield of 4.90%. 22,872 22,872 - ------------------------------------------------------------------ TOTAL REPURCHASE AGREEMENT (Cost: $22,872) 22,872 - ------------------------------------------------------------------ TOTAL INVESTMENTS IN SECURITIES -- 110.22% (Cost $203,850,871) 178,655,051 - ------------------------------------------------------------------ Other Assets, Less Liabilities -- (10.22%) (16,562,590) - ------------------------------------------------------------------ NET ASSETS -- 100.00% $162,092,461 ================================================================== * Denotes all or part of security on loan. See Note 5. + Non-income earning securities. ++ Represents investment of collateral received from securities lending transactions. See Note 5. SEE NOTES TO FINANCIAL STATEMENTS. - -------------------------------------------------------------------------------- PAGE 44 iShares iSHARES S&P MIDCAP 400/BARRA VALUE INDEX FUND SCHEDULE OF INVESTMENTS MARCH 31, 2001 SECURITY SHARES VALUE - ----------------------------------------------------------------- COMMON STOCKS - 99.98% - ----------------------------------------------------------------- M&T Bank Corp.* 17,498 $ 1,223,110 R.J. Reynolds Tobacco Holdings Inc. 18,472 1,036,279 Telephone & Data Systems Inc. 10,638 994,653 Marshall & Ilsley Corp. 18,626 983,639 Weatherford International Inc.+ 19,893 981,720 ENSCO International Inc. 25,078 877,730 Atmel Corp.+ 84,398 828,155 Zions Bancorp 15,750 820,417 Jones Apparel Group Inc.+* 21,605 816,669 North Fork Bancorp 29,640 769,158 Broadwing Inc.+ 39,128 749,301 TECO Energy Inc. 24,160 723,834 First Tennessee National Corp. 23,320 720,588 Litton Industries Inc.+ 8,281 665,213 Utilicorp United Inc. 19,974 646,359 Dime Bancorp Inc. 19,636 643,079 Old Republic International Corp. 21,325 605,630 Greenpoint Financial Corp. 18,283 596,026 Mylan Laboratories Inc. 22,615 584,598 American Water Works Inc. 17,811 574,405 Ultramar Diamond Shamrock Corp. 15,742 569,546 Radian Group Inc. 8,371 567,135 Everest Re Group Ltd. 8,297 551,916 Park Place Entertainment Corp.+ 53,842 551,880 Murphy Oil Corp. 8,152 542,760 Tyson Foods Inc. "A"* 40,243 542,073 Edwards (A.G.) Inc. 14,539 537,943 Lam Research Corp.+* 22,193 527,084 Banknorth Group Inc. 26,213 520,983 PMI Group Inc. (The) 8,008 520,360 SCANA Corp. 18,957 514,683 Ocean Energy Inc. 30,322 501,829 Allmerica Financial Corp. 9,621 499,234 Vishay Intertechnology Inc.+ 24,964 496,784 Hormel Foods Corp. 25,083 488,617 Astoria Financial Corp. 9,033 482,701 SCI Systems Inc.+ 26,410 480,662 Wisconsin Energy Corp. 21,901 472,624 Potomac Electric Power Co.* 20,164 471,434 AmeriCredit Corp.+ 14,485 469,749 Mercantile Bankshares Corp. 12,658 468,346 Compass Bancshares Inc. 21,889 467,877 Tidewater Inc. 10,116 457,243 Health Net Inc.+ 22,166 456,841 International Rectifier Corp.+* 11,277 456,718 Westwood One Inc.+ 19,813 456,095 Lennar Corp. 11,420 455,201 Alliant Energy Corp. 14,303 455,121 Northeast Utilities 26,004 451,950 PepsiAmericas Inc. 28,811 449,452 Unitrin Inc. 12,248 445,521 Bowater Inc. 9,069 429,871 MDU Resources Group Inc. 11,900 425,068 Noble Affiliates Inc. 10,133 422,850 Cypress Semiconductor Corp.+ 23,798 421,939 MCN Energy Group Inc. 16,331 421,340 Helmerich & Payne Inc. 9,070 419,941 Energizer Holdings Inc.+ 16,605 415,125 FirstMerit Corp. 15,880 412,880 Equitable Resources Inc. 5,890 406,587 Bergen Brunswig Corp. "A" 24,467 406,152 CheckFree Corp.+ 13,796 406,120 E*trade Group Inc.+* 57,608 402,104 Associated Bancorp 12,086 401,859 Arrow Electronics Inc.+ 17,775 401,715 Hibernia Corp. "A" 28,704 400,995 Chris-Craft Industries Inc.+ 6,334 400,625 Questar Corp. 14,575 399,355 Viad Corp. 16,697 397,890 Valero Energy Corp. 11,050 392,275 Sonoco Products Co. 18,017 387,365 National Fuel Gas Co. 7,151 383,151 Cabot Corp. 12,009 378,283 Sovereign Bancorp Inc. 44,546 377,249 Hispanic Broadcasting Corp.+ 19,710 376,461 Ceridian Corp.+ 26,370 370,321 Energy East Corp. 21,267 368,982 NSTAR 9,597 367,565 GATX Corporation 8,635 366,642 First Virginia Banks Inc. 8,345 361,923 Martin Marietta Materials Inc. 8,463 361,370 Protective Life Corp. 11,686 358,410 Omnicare Inc. 16,680 357,786 International Speedway Corp. "A"* 9,616 356,393 Diebold Inc. 12,939 355,305 Puget Energy, Inc. 15,505 354,754 Outback Steakhouse Inc.+* 13,890 353,639 Lattice Semiconductor Corp.+ 19,441 353,583 Varco International Inc.+ 17,097 353,053 3Com Corp.+ 61,604 352,298 ALLETE 13,638 352,133 Conectiv Inc. 16,036 350,387 - -------------------------------------------------------------------------------- iSHARES SCHEDULES OF INVESTMENTS PAGE 45 iSHARES S&P MIDCAP 400/BARRA VALUE INDEX FUND SCHEDULE OF INVESTMENTS (CONTINUED) MARCH 31, 2001 SECURITY SHARES VALUE - ----------------------------------------------------------------- COMMON STOCKS (CONTINUED) - ----------------------------------------------------------------- Trigon Healthcare Inc.+ 6,802 $ 350,303 Avnet Inc.* 16,718 342,719 Belo (A.H.) Corp. 20,581 338,969 Lear Corp.+ 11,530 337,829 Saks Inc.+ 25,622 333,086 City National Corp. 8,651 332,285 IndyMac Bancorp Inc.+ 11,370 326,774 OGE Energy Corp. 14,097 324,090 Leucadia National Corp. 10,009 321,990 Entercom Communications Corp.+ 8,187 321,749 Reynolds & Reynolds Co. "A" 16,604 319,627 IBP Inc. 19,118 313,535 Precision Castparts Corp. 9,275 306,539 Lyondell Chemical Co. 21,277 305,750 Western Resources Inc. 12,666 302,084 MONY Group Inc. 9,058 300,726 Clayton Homes Inc. 24,917 300,250 Callaway Golf Co. 13,422 298,103 DQE Inc. 10,119 294,969 Harris Corp. 11,912 294,822 American Financial Group Inc. 11,995 289,079 Tech Data Corp.+ 9,726 286,917 Lubrizol Corp. 9,421 285,456 Teleflex Inc. 6,923 283,497 Neiman-Marcus Group Inc. "A"+ 8,612 280,751 Pioneer Natural Resources Co.+ 17,812 279,648 Barnes & Noble Inc.+ 11,679 279,128 Jacobs Engineering Group Inc.+ 4,790 277,820 Six Flags Inc.+* 14,250 275,737 Mandalay Resort Group Inc.+ 13,801 275,606 Kansas City Power & Light Co.* 11,197 275,446 Harte-Hanks Inc. 12,152 274,878 Pacific Century Financial Corp. 14,436 274,284 Sensormatic Electronics Corp.+ 14,214 270,066 Williams-Sonoma Inc.+* 10,275 269,719 Montana Power Co. 19,121 269,606 KEMET Corp.+ 15,854 268,567 Mohawk Industries Inc.+ 9,483 266,283 Webster Financial Corp. 8,849 259,386 Vectren Corporation 12,109 259,133 IDACorp Inc. 6,769 258,643 IMC Global Inc. 20,781 255,606 CNF Transportation Inc. 8,793 254,030 Roslyn Bancorp Inc. 11,140 250,650 HON Industries Inc. 10,900 250,373 Hubbell Inc. "B" 10,739 250,219 Provident Financial Group Inc. 8,826 248,231 Houghton Mifflin Co. 5,224 240,356 Borders Group Inc.+ 14,233 239,541 Suiza Foods Corp.+ 4,911 236,170 Cytec Industries Inc.+ 7,277 233,010 WGL Holdings Inc. 8,420 232,813 Quanta Services Inc.+ 10,333 230,633 Crompton Corp. 20,391 228,379 Pentair Inc. 8,801 224,249 Valspar Corp. 7,712 221,257 Hawaiian Electric Industries Inc. 5,946 219,705 Comdisco Inc. 27,413 219,304 Dean Foods Co. 6,439 218,025 Emmis Communications Corp.+* 8,508 215,359 AGL Resources Inc. 9,811 214,959 Furniture Brands International Inc.+ 8,984 212,921 Swift Transportation Co. Inc.+* 11,454 211,899 Sierra Pacific Resources Corp. 14,196 210,101 Advanced Fibre Communications Inc.+ 14,595 208,891 Edwards Lifesciences Corp.+ 10,620 208,152 United Rentals Inc.+ 12,721 207,734 Network Associates Inc.+ 24,918 205,573 Public Service Company of New Mexico* 7,075 205,246 Storage Technology Corp.+ 18,819 204,939 Pittston Brink's Group 9,370 203,329 Rayonier Inc. 4,902 202,453 Sensient Technologies Corp. 8,825 201,033 Credence Systems Corp.+ 9,727 199,403 Pennzoil-Quaker State Co. 14,242 199,388 Lancaster Colony Corp. 6,823 198,293 Quorum Health Group Inc.+ 12,970 196,982 AK Steel Holding Corp. 19,486 195,834 Atlas Air Inc.+ 6,916 194,685 Universal Corporation 4,914 193,759 Legato Systems Inc.+ 15,804 190,636 York International Corp. 6,885 190,577 Media General Inc. "A" 4,132 190,485 Borg-Warner Automotive Inc. 4,738 189,852 RPM Inc. 18,496 188,659 Albemarle Corp. 8,290 186,110 Cleco Corp. 4,073 185,118 CBRL Group Inc. 10,166 184,894 Carlisle Companies Inc. 5,480 178,758 Incyte Genomics Inc.+ 11,612 178,244 Harsco Corp. 7,227 177,134 Steris Corp.+ 12,415 175,051 - -------------------------------------------------------------------------------- PAGE 46 iShares iSHARES S&P MIDCAP 400/BARRA VALUE INDEX FUND SCHEDULE OF INVESTMENTS (CONTINUED) MARCH 31, 2001 SECURITY SHARES VALUE - ----------------------------------------------------------------- COMMON STOCKS (CONTINUED) - ----------------------------------------------------------------- Avocent Corporation+* 7,900 $ 172,319 Overseas Shipholding Group Inc. 6,147 168,981 Granite Construction Inc. 4,964 168,677 GTECH Holdings Corp.+ 6,159 167,833 Tecumseh Products Co. "A" 3,415 165,201 ArvinMeritor Inc. 11,869 162,961 Dole Food Co. 10,105 162,488 Olin Corp. 7,962 162,345 Keane Inc.+ 12,477 162,201 Superior Industries International Inc. 4,674 161,580 AMETEK Inc. 5,820 160,632 Federal Signal Corp. 8,207 160,283 Claire's Stores Inc. 8,848 156,610 Alexander & Baldwin Inc. 7,317 156,401 CommScope Inc.+ 9,323 155,508 PacifiCare Health Systems Inc. "A"+* 6,180 153,727 Kelly Services Inc. "A" 6,467 152,492 Flowserve Corp.+ 6,777 152,076 Kennametal Inc. 5,514 151,635 Covanta Energy Corporation+ 8,981 150,881 Kaydon Corp. 5,411 145,989 Lands' End Inc.+* 5,279 144,909 Imation Corp.+ 6,380 143,103 Interstate Bakeries Corp. 9,118 139,323 Sylvan Learning Systems Inc.+ 6,742 139,054 Modine Manufacturing Co. 5,315 136,861 Covance Inc.+ 10,456 134,360 Wisconsin Central Transportation Corp.+ 8,400 133,875 Perrigo Co.+ 13,299 131,328 Trinity Industries Inc. 6,661 129,889 Horace Mann Educators Corp. 7,331 129,759 Minerals Technologies Inc. 3,671 128,301 Ferro Corp. 6,188 125,802 Alaska Air Group Inc.+* 4,787 123,026 Wausau-Mosinee Paper Corp. 9,352 121,576 Longview Fibre Co. 9,298 120,874 USG Corp.* 7,852 119,979 Wallace Computer Services Inc. 7,323 118,999 NCO Group Inc.+* 4,637 118,533 Mastec Inc.+ 8,616 116,402 Ruddick Corp. 8,438 115,601 SHARES OR SECURITY PRINCIPAL VALUE - ----------------------------------------------------------------- Smucker (J.M) Company (The) 4,379 $ 114,730 Carpenter Technology Corp. 3,994 112,032 Bob Evans Farms Inc. 6,296 111,754 Stewart & Stevenson Services Inc. 5,121 111,382 Banta Corp. 4,487 108,810 Fuller (H. B.) Co. 2,550 107,419 AGCO Corp. 10,880 104,448 Albany International Corp. "A"+ 5,605 103,132 Ohio Casualty Corp. 10,873 102,274 Hunt (J.B.) Transport Services Inc.+ 6,420 100,312 Bandag Inc. 3,738 100,104 Glatfelter (P.H.) Co. 7,735 98,544 Airgas Inc.+ 12,268 96,672 Structural Dynamics Research Corp.+ 6,479 92,022 Airborne Inc. 8,689 88,367 Modis Professional Services Inc.+ 17,613 81,020 DSP Group Inc.+ 4,929 76,399 Sequa Corp. "A"+ 1,882 73,398 Unifi Inc.+ 9,702 68,787 Schulman (A.) Inc. 5,350 63,866 Lance Inc. 5,238 58,927 ANTEC Corp.+ 6,895 50,204 Transaction Systems Architects Inc. "A"+ 6,721 48,097 NCH Corp. 974 46,382 Ryerson Tull Inc. 4,562 45,848 Lone Star Steakhouse & Saloon Inc. 4,501 41,775 Sykes Enterprises Inc.+ 7,453 40,759 MAXXAM Inc.+ 1,242 16,146 - ----------------------------------------------------------------- TOTAL COMMON STOCKS (Cost: $78,709,803) 78,023,504 - ----------------------------------------------------------------- SHORT TERM INSTRUMENTS - 8.23% - ----------------------------------------------------------------- Dreyfus Money Market Fund++ $2,472,331 2,472,331 Federal National Mortgage Association Discount Note 4.77%, 04/05/01++ 405,451 405,451 Goldman Sachs Financial Square Prime Obligation Fund++ 1,309,387 1,309,387 Providian Temp Cash Money Market Fund++ 2,236,871 2,236,871 - ----------------------------------------------------------------- TOTAL SHORT TERM INSTRUMENTS (Cost: $6,424,040) 6,424,040 - ----------------------------------------------------------------- - -------------------------------------------------------------------------------- iSHARES SCHEDULES OF INVESTMENTS PAGE 47 iSHARES S&P MIDCAP 400/BARRA VALUE INDEX FUND SCHEDULE OF INVESTMENTS (CONTINUED) MARCH 31, 2001 SECURITY PRINCIPAL VALUE - ----------------------------------------------------------------- REPURCHASE AGREEMENT - 0.04% - ----------------------------------------------------------------- Investors Bank & Trust Tri-Party Repurchase Agreement, dated 03/30/01, due 04/02/01, with a maturity value of $30,941 and an effective yield of 4.90%. $ 30,928 $ 30,928 - ----------------------------------------------------------------- TOTAL REPURCHASE AGREEMENT (Cost: $30,928) 30,928 - ----------------------------------------------------------------- TOTAL INVESTMENTS IN SECURITIES -- 108.25% (Cost $85,164,771) 84,478,472 - ----------------------------------------------------------------- Other Assets, Less Liabilities -- (8.25%) (6,434,936) - ----------------------------------------------------------------- NET ASSETS -- 100.00% $78,043,536 ================================================================= * Denotes all or part of security on loan. See Note 5. + Non-income earning securities. ++ Represents investment of collateral received from securities lending transactions. See Note 5. SEE NOTES TO FINANCIAL STATEMENTS. - -------------------------------------------------------------------------------- PAGE 48 iShares iSHARES S&P SMALLCAP 600 INDEX FUND SCHEDULE OF INVESTMENTS MARCH 31, 2001 SECURITY SHARES VALUE - ------------------------------------------------------------------ COMMON STOCKS - 100.04% - ------------------------------------------------------------------ Universal Health Services Inc. "B"+ 18,809 $ 1,660,835 Eaton Vance Corp. 44,486 1,381,290 Fidelity National Financial Inc. 48,790 1,306,108 Patterson Dental Co.+ 42,470 1,305,953 Timberland Co. "A"+ 25,104 1,275,283 Cephalon Inc.+* 26,163 1,257,459 Varian Medical Systems Inc.+ 20,672 1,256,858 Barrett Resources Corp.+ 20,788 1,248,319 Centura Banks Inc. 24,894 1,231,008 Shaw Group Inc.+* 25,661 1,198,625 Cross Timbers Oil Co. 48,277 1,194,856 Commerce Bancorp Inc. 19,787 1,187,220 Massey Energy Co. 47,901 1,145,792 Cullen/Frost Bankers Inc. 32,696 1,119,838 Smithfield Foods Inc.+* 34,371 1,117,058 Priority Healthcare Corp. "B"+ 28,731 1,084,595 First American Corp. 40,221 1,045,746 Louis Dreyfus Natural Gas Corp.+ 27,689 1,024,493 AdvancePCS+ 18,768 1,018,457 D.R. Horton Inc. 47,662 1,008,051 Pride International Inc.+ 42,373 1,006,782 Pogo Producing Co. 33,606 991,713 Newfield Exploration Co.+ 26,860 937,414 RSA Security Inc.+ 37,258 919,807 Constellation Brands Inc.+ 12,852 914,805 Washington Federal Inc. 36,392 893,879 Toll Brothers Inc.+ 22,653 872,141 NVR Inc.+ 5,274 859,662 Medicis Pharmaceutical Corp. "A"+ 19,087 855,479 Ethan Allen Interiors Inc. 24,898 841,054 Raymond James Financial Inc. 30,039 835,084 Alpharma Inc. "A"* 25,408 831,858 SkyWest Inc. 35,469 824,654 New York Community Bancorp 28,413 823,977 RGS Energy Group Inc. 21,886 809,782 Vintage Petroleum Inc. 39,624 806,348 Downey Financial Corp. 17,797 806,204 Stone Energy Corp.+ 16,247 800,490 ResMed Inc.+* 19,722 796,769 OM Group Inc. 14,956 796,407 Pier 1 Imports Inc. 60,885 791,505 Philadelphia Suburban Corp. 33,388 786,621 Renal Care Group Inc.+ 29,277 785,209 Tom Brown Inc.+ 23,788 785,004 Ruby Tuesday Inc. 39,830 781,066 Alliant Techsystems Inc.+ 8,793 778,620 Zebra Technologies Corp. "A"+ 19,972 761,433 Hudson United Bancorp 33,525 761,017 CEC Entertainment Inc.+ 17,089 757,897 Commercial Federal Corp. 33,917 756,349 Invacare Corp. 19,076 753,884 99 Cents Only Stores+ 32,416 749,122 Cerner Corp.+ 21,840 748,020 Jack in the Box Inc.+ 24,284 727,306 Cheesecake Factory (The)+ 19,645 723,182 First Midwest Bancorp Inc. 25,591 720,387 BARRA Inc.+ 13,293 717,822 Piedmont Natural Gas Co. 20,084 712,982 Axcelis Technologies Inc.+ 61,552 711,695 Whole Foods Market Inc.+* 16,854 709,975 Copart Inc.+ 34,541 707,745 Linens 'N Things Inc.+ 25,293 695,557 Roper Industries Inc. 19,355 692,909 Energen Corp. 19,500 688,350 Techne Corp.+ 26,223 685,076 Scotts Co. (The) "A"+ 17,901 681,133 Cognex Corp.+ 27,518 681,070 AptarGroup Inc. 22,328 680,334 Polaris Industries Partners LP "A" 15,002 678,090 La-Z-Boy Inc. 37,766 672,235 Southern Union Co.+ 31,895 669,795 Pharmaceutical Product Development Inc.+ 15,851 667,723 Stillwater Mining Co.+ 24,364 659,046 Cambrex Corp. 15,809 656,864 Varian Semiconductor Equipment Associates Inc.+ 20,375 650,727 O'Reilly Automotive Inc.+ 32,267 643,323 Lone Star Technologies Inc.+ 14,942 638,771 Fleming Companies Inc.* 24,965 635,359 Zale Corp.+ 21,874 634,346 Orthodontic Centers of America Inc.+* 30,782 631,031 Mueller Industries Inc.+ 21,004 630,960 FactSet Research Systems Inc. 20,822 628,824 Mid Atlantic Medical Services Inc.+ 30,936 628,001 Read-Rite Corp.+ 75,069 622,322 Veritas DGC Inc.+ 19,375 619,031 Coventry Health Care Inc.+ 37,360 618,775 Michaels Stores Inc.+ 20,538 614,856 Coherent Inc.+ 17,261 612,765 Hain Celestial Group Inc.+ 20,937 607,173 Silicon Valley Group Inc.+ 22,060 606,650 Province Healthcare Co.+ 19,492 593,288 - -------------------------------------------------------------------------------- iSHARES SCHEDULES OF INVESTMENTS PAGE 49 iSHARES S&P SMALLCAP 600 INDEX FUND SCHEDULE OF INVESTMENTS (CONTINUED) MARCH 31, 2001 SECURITY SHARES VALUE - ------------------------------------------------------------------ COMMON STOCKS (CONTINUED) - ------------------------------------------------------------------ Delta & Pine Land Co. 24,261 $ 584,690 Atmos Energy Corp. 24,539 584,028 Respironics Inc.+ 19,099 582,520 M.D.C. Holdings Inc. 14,770 581,200 United Bancshares Inc. 26,267 581,157 Anixter International Inc.+ 23,877 575,436 Performance Food Group Co.+ 10,923 573,458 Men's Wearhouse Inc. (The)+ 26,491 571,676 Southwest Bancorp of Texas Inc.+ 18,160 569,770 Applebee's International Inc. 15,934 568,645 Earthgrains Company (The) 26,668 566,695 Anchor Gaming+ 9,248 566,440 Atlantic Coast Airlines Holdings Inc.+ 26,914 565,194 Corn Products International Inc. 21,983 564,084 Pacific Sunwear of California Inc.+ 20,435 561,963 Whitney Holding Corp. 14,171 560,640 Insight Enterprises Inc.+ 26,314 555,883 Staten Island Bancorp Inc. 22,140 551,286 Burlington Coat Factory Warehouse Corp. 27,897 549,571 Vicor Corp.+ 26,790 549,195 Insituform Technologies Inc. "A"+ 16,824 548,883 Idex Corp. 18,874 546,969 Black Box Corp.+ 12,203 543,796 PolyOne Corp. 59,516 541,596 Graco Inc. 19,170 536,760 Community First Bankshares Inc. 26,587 536,725 Haemonetics Corp.+ 16,000 529,600 Accredo Health Inc.+ 16,183 528,982 Fair Isaac and Co. Inc. 9,035 528,638 Technitrol Inc. 21,215 528,041 Avista Corp. 29,851 525,975 United Stationers Inc.+ 21,636 524,673 Mercury Computer Systems Inc.+ 13,620 522,668 CAL Dive International Inc.+ 20,477 519,604 Harman International Industries Inc. 20,210 517,174 US Freightways Corp. 16,418 517,167 Tetra Tech Inc.+ 25,519 516,760 Advanced Energy Industries Inc.+ 20,011 516,534 HS Resources Inc.+ 11,445 515,025 Regeneron Pharmaceuticals Inc.+ 23,162 513,907 Chittenden Corp. 16,436 512,803 Werner Enterprises Inc. 29,607 507,020 TrustCo Bank Corp. 39,271 505,614 Cabot Oil & Gas Corp. "A" 18,495 499,365 Swift Energy Co.+ 15,530 497,581 Syncor International Corp.+ 15,371 495,715 Footstar Inc.+ 12,296 493,684 DuPont Photomasks Inc.+ 11,095 486,838 THQ Inc.+ 12,791 486,058 Verity Inc.+ 21,380 485,059 Brady Corp. "A" 14,390 484,943 AnnTaylor Stores Corp.+* 18,249 484,511 National Data Corp.* 20,741 484,302 Springs Industries Inc. "A" 11,306 483,897 Bally Total Fitness Holding Corp.+ 16,378 482,332 American Management Systems Inc.+ 26,296 481,546 Electro Scientific Industries Inc.+ 17,124 480,542 Seacor Smit Inc.+ 10,623 480,160 ADVO Inc.+ 12,814 472,837 US Oncology Inc.+ 58,174 472,664 Photronics Inc.+* 18,931 467,359 Sybron Dental Specialties Inc.+ 22,248 467,208 Foster Wheeler Corp. 25,895 465,074 CH Energy Group Inc. 10,497 464,492 C&D Technologies Inc. 16,739 461,996 Florida Rock Industries Inc. 11,693 461,406 Impath Inc.+ 9,933 460,643 IDEXX Laboratories Inc.+ 20,880 458,055 Trenwick Group Ltd. 23,199 457,716 ABM Industries Inc. 14,555 454,844 New Jersey Resources Corp. 11,052 454,790 Diagnostic Products Corp. 8,683 452,818 Aspen Technology Inc.+ 18,813 449,160 Baldor Electric Co. 21,290 448,154 Jeffries Group Inc. 15,509 447,435 Susquehanna Bancshares Inc. 24,700 444,600 Dionex Corp.+ 14,088 442,892 Forward Air Corp.+ 13,472 440,366 Alpha Industries Inc.+ 27,617 434,968 Cooper Companies Inc. 9,182 434,768 Brooks Automation Inc.+ 10,876 432,321 First BanCorp. 16,679 431,986 UniSource Energy Corp. 20,395 428,295 UIL Holdings Corporation 8,994 427,215 UGI Corp. 17,295 423,555 Kulicke & Soffa Industries Inc.+ 30,974 420,085 Tredegar Corporation 23,859 419,918 Sonic Corp.+ 16,741 419,571 Avant! Corp.+ 24,253 418,364 Cymer Inc.+ 19,331 418,130 Central Parking Corp.* 22,960 417,872 Southwest Gas Corp. 19,790 412,622 - -------------------------------------------------------------------------------- PAGE 50 iShares iSHARES S&P SMALLCAP 600 INDEX FUND SCHEDULE OF INVESTMENTS (CONTINUED) MARCH 31, 2001 SECURITY SHARES VALUE - ------------------------------------------------------------------ COMMON STOCKS (CONTINUED) - ------------------------------------------------------------------ Arbitron Inc.+ 18,400 $ 409,400 Methode Electronics Inc. "A" 22,739 407,881 Heartland Express Inc.+ 16,026 404,656 Standard-Pacific Corp. 19,077 402,525 MAF Bancorp Inc. 14,609 399,921 MAXIMUS Inc.+ 13,401 396,804 Noven Pharmaceuticals Inc.+ 14,010 396,658 DMC Stratex Networks Inc.+ 46,957 389,743 South Financial Group Inc. (The) 27,293 388,925 C-Cube Microsystems Inc.+ 31,440 387,105 Milacron Inc. 21,367 386,956 Manitowoc Co. Inc. 15,581 386,409 Wellman Inc. 19,976 384,538 Wolverine World Wide Inc. 26,326 383,833 Aeroflex Inc.+ 37,186 383,481 Regis Corp. 25,975 379,884 Texas Industries Inc. 13,069 379,393 Quiksilver Inc.+ 14,272 378,922 Northwest Natural Gas Co. 15,741 377,784 Delphi Financial Group Inc. "A" 12,744 377,222 Remedy Corp.+ 19,559 376,511 Provident Bankshares Corp. 16,806 376,034 Genesco Inc.+ 13,685 374,969 Russell Corp. 19,979 373,607 Casey's General Store Inc. 31,261 373,178 Cable Design Technologies Corp.+ 27,780 372,252 Reliance Steel & Aluminum Co. 15,821 371,002 Oshkosh Truck Corp. 10,422 369,981 Simpson Manufacturing Co. Inc.+ 7,451 367,334 CTS Corp. 17,702 367,316 Toro Co. 7,962 366,252 Selective Insurance Group Inc. 15,760 366,174 Elantec Semiconductor Inc.+ 13,800 365,700 Chico's FAS Inc.+* 11,102 364,284 Analogic Corp. 8,103 364,129 NYFIX Inc.+ 15,803 362,481 Hooper Holmes Inc. 41,966 360,488 Nautica Enterprises Inc.+ 20,096 360,472 Lennox International Inc. 34,926 359,738 WMS Industries Inc.+ 19,969 359,442 Landstar System Inc.+ 5,304 359,346 Atwood Oceanics Inc.+ 8,763 358,582 SPS Technologies Inc.+ 7,925 357,101 NBTY Inc.+ 41,913 356,261 NorthWestern Corp. 14,529 355,961 HNC Software Inc.+ 20,250 355,641 Heidrick & Struggles International Inc.+ 12,284 355,468 CLARCOR Inc. 15,384 355,370 MacDermid Inc. 19,610 354,549 Dendrite International Inc.+ 25,301 354,214 ATMI Inc.+ 19,106 353,461 American Italian Pasta Co. "A"+ 11,013 352,416 Ryland Group Inc. 8,413 349,140 SCP Pool Corp.+ 10,720 348,400 Georgia Gulf Corp. 19,952 347,364 Owens & Minor Inc.* 21,004 347,196 JLG Industries Inc. 26,645 346,385 Michael Foods Inc. 11,512 343,921 FileNET Corp.+ 21,920 343,870 Patina Oil & Gas Corp. 12,862 343,415 Triarc Companies Inc.+ 13,919 342,407 FYI Inc.+ 10,142 339,123 Rogers Corp.+ 9,542 338,836 Fossil Inc.+ 19,455 338,031 Mentor Corp. 15,022 337,995 Offshore Logistics Inc.+ 13,602 337,500 Helix Technology Corp. 14,363 337,306 Hyperion Solutions Corp.+ 20,905 337,093 Harland (John H.) Co. 18,023 337,030 Ralcorp Holdings Inc.+ 18,806 336,627 Datascope Corp. 9,274 335,603 Agribrands International Inc.+ 6,202 334,784 Paxar Corp.+ 26,634 332,925 St. Mary Land & Exploration Co. 14,311 332,731 Ultratech Stepper Inc.+ 13,461 331,477 Kent Electronics Corp.+ 18,309 329,562 Progress Software Corp.+ 22,301 323,365 Administaff Inc.+ 17,553 318,587 Morrison Management Specialist Inc. 7,970 317,923 Steel Dynamics Inc.+ 28,503 317,096 Alliance Semiconductor Corp.+ 27,196 316,154 Russ Berrie & Co. Inc. 12,522 315,805 Actel Corp.+ 15,444 315,637 Oceaneering International Inc.+ 14,638 314,717 Belden Inc. 15,537 311,517 Global Payments Inc.+ 16,715 309,227 Cost Plus Inc.+ 13,348 307,838 On Assignment Inc.+ 14,697 306,800 FirstFed Financial Corp.+ 10,953 306,684 Prime Hospitality Corp.+ 28,286 305,489 Cryolife Inc.+ 11,755 304,807 Tower Automotive Inc.+ 28,328 303,959 - -------------------------------------------------------------------------------- iSHARES SCHEDULES OF INVESTMENTS PAGE 51 iSHARES S&P SMALLCAP 600 INDEX FUND SCHEDULE OF INVESTMENTS (CONTINUED) MARCH 31, 2001 SECURITY SHARES VALUE - ------------------------------------------------------------------ COMMON STOCKS (CONTINUED) - ------------------------------------------------------------------ Power Integrations Inc.+ 17,600 $ 303,600 LandAmerica Financial Group Inc. 8,494 302,217 Kirby Corp.+ 15,093 301,860 Input/Output Inc.+ 32,236 301,407 Arnold Industries Inc. 15,691 299,110 BE Aerospace Inc.+ 16,263 298,833 CUNO Inc.+ 10,302 298,758 General Communication Inc. "A"+ 33,010 297,090 Arch Chemicals Inc. 13,936 296,837 Kellwood Co. 14,282 296,351 Rare Hospitality International Inc.+ 11,843 294,595 Stein Mart Inc.+ 26,894 294,153 Information Holdings Inc.+ 13,692 293,009 Sterling Bancshares Inc. 16,656 291,480 Seitel Inc.+ 15,665 291,369 Penton Media Inc. 20,022 291,320 AO Smith Corp. "B" 14,896 290,919 Hilb Rogal & Hamilton Co. 8,302 290,570 Enzo Biochem Inc.+* 17,157 288,066 Libbey Inc. 9,624 287,373 UCBH Holdings Inc. 5,902 287,354 Tucker Anthony Sutro Corporation 15,132 286,751 GenCorp. Inc. 26,972 286,443 Trimble Navigation Ltd.+ 14,953 283,172 Teledyne Technologies Inc.+ 20,212 282,968 Riggs National Corp. 17,805 282,654 INAMED Corp.+ 11,900 282,625 Esterline Technologies Corp.+ 12,930 281,227 Standard Register Co. 17,198 280,327 East West Bancorp Inc. 14,540 279,895 Laclede Gas Co. 11,984 279,227 SONICblue Inc.+ 58,782 279,215 Watts Industries Inc. "A" 16,662 278,255 Dress Barn Inc.+ 11,625 272,461 Spherion Corporation+ 39,186 271,951 Pinnacle Systems Inc.+ 32,223 271,882 Roadway Express Inc. 12,276 270,072 Ionics Inc.+ 10,267 266,942 Aztar Corp.+ 24,979 265,027 Dril-Quip Inc.+ 10,997 263,928 Astropower Inc.+* 8,775 263,250 Artesyn Technologies Inc.+ 24,308 262,830 G&K Services Inc. "A" 13,050 260,184 Carreker Corp.+ 13,557 257,583 Phillips-Van Heusen Corporation 17,058 257,235 Yellow Corporation+ 15,004 256,944 Fritz Companies Inc.+ 23,403 255,970 Vital Sign Inc. 7,864 252,631 Buckeye Technologies Inc.+ 21,933 252,229 IHOP Corp.+ 12,597 251,940 Armor Holdings Inc.+ 14,288 251,469 Marcus Corp. 18,220 251,436 Kronos Inc.+ 7,957 250,148 Zenith National Insurance Corp. 10,589 249,900 RLI Corp. 6,085 248,511 Valmont Industries Inc. 14,628 247,762 ChemFirst Inc. 9,296 247,738 Benchmark Electronics Inc.+* 12,509 243,925 Radiant Systems Inc.+ 17,565 242,617 Intermagnetics General Corp.+ 9,824 238,232 Cato Corp. "A" 15,806 238,078 School Specialty Inc.+ 11,016 237,533 Scott Technologies Inc.+ 10,594 234,392 Hutchinson Technology Inc.+* 15,672 234,101 Kopin Corp.+ 40,560 233,220 Park Electrochemical Corp. 10,302 232,825 Kaman Corp. "A" 14,166 231,968 Bowne & Co. Inc. 20,987 231,906 Winnebago Industries Inc. 13,092 231,728 International Multifoods Corp. 11,992 230,846 P.F. Chang's China Bistro Inc.+* 6,553 229,355 General Semiconductor Inc.+ 24,209 229,259 Allen Telecom Inc.+ 17,755 229,039 Memberworks Inc.+* 9,702 227,997 Plains Resource Inc.+ 10,830 227,430 Wet Seal Inc. "A"+ 8,788 225,193 Interface Inc. "A" 32,618 224,249 Hughes Supply Inc. 15,336 224,212 Regal-Beloit Corp. 13,409 223,260 Barnes Group Inc. 11,742 223,098 Pediatrix Medical Group Inc.+ 10,038 222,844 Micros Systems Inc.+ 10,969 222,122 Panera Bread Co. "A"+ 8,273 221,303 Phoenix Technologies Ltd.+ 15,892 220,502 NUI Corp. 8,137 219,699 Coca-Cola Bottling Co. 5,431 219,616 Factory 2-U Stores Inc.+ 8,033 219,401 Chesapeake Corp. 9,447 218,698 AAR Corp. 17,134 218,625 Electroglas Inc.+ 13,230 218,295 Dimon Inc. 28,317 218,041 M.S. Carriers Inc.+ 7,108 217,683 - -------------------------------------------------------------------------------- PAGE 52 iShares iSHARES S&P SMALLCAP 600 INDEX FUND SCHEDULE OF INVESTMENTS (CONTINUED) MARCH 31, 2001 SECURITY SHARES VALUE - ------------------------------------------------------------------ COMMON STOCKS (CONTINUED) - ------------------------------------------------------------------ Bio-Technology General Corp.+ 34,868 $ 217,576 Frontier Airlines Inc.+ 17,774 216,615 Monaco Coach Corp.+ 12,036 216,167 Viasat Inc.+ 14,289 216,121 Pioneer-Standard Electronics Inc. 17,641 216,102 Chemed Corp. 6,209 215,763 Great Atlantic & Pacific Tea Co. 23,535 215,345 APW Ltd.+ 25,022 214,689 Ryan's Family Steak Houses Inc.+ 20,145 214,041 Avid Technology Inc.+ 15,953 213,371 American States Water Co. 6,443 213,328 O'Charley's Inc.+ 10,100 211,469 Brown Shoe Company Inc. 11,211 211,327 GBC Bancorp 7,361 209,788 AXT Inc.+ 13,985 209,775 Arctic Cat Inc. 15,079 206,394 Pericom Semiconductor Corp.+ 16,001 206,013 Pep Boys-Manny Moe & Jack Inc. 33,722 205,367 Harmonic Inc.+ 36,502 205,324 Cohu Inc. 13,041 202,951 Aaron Rents Inc. "B" 12,579 202,522 URS Corp.+ 10,644 202,236 Applied Industrial Technologies Inc. 12,304 201,786 Arkansas Best Corp.+ 12,768 201,096 Commercial Metals Co. 7,964 199,896 Anchor BanCorp Wisconsin Inc. 14,356 199,190 Stride Rite Corp. 26,535 199,013 WD-40 Company 9,848 196,960 Oshkosh B'gosh Inc. "A" 7,716 196,758 Brush Engineered Materials 10,548 196,720 Arthocare Corp.+* 13,958 195,412 Thomas Industries Inc. 9,436 195,325 Watsco Inc. 16,848 195,100 Nuevo Energy Co.+ 10,951 194,052 Parexel International Corp.+ 15,516 192,980 Polymedica Industries Corp.+* 8,445 192,124 Universal Forest Products Inc. 12,673 191,679 Mutual Risk Management Ltd. 26,418 191,531 CACI International Inc. "A"+ 7,082 191,214 Southwest Securities Group Inc.* 10,234 191,171 Gardner Denver Inc.+ 9,720 190,512 Systems & Computer Technology Corp.+ 20,646 189,685 Profit Recovery Group International Inc. (The)+ 30,294 189,338 RadiSys Corp.+ 11,117 188,989 Remington Oil & Gas Corp.+ 13,628 188,237 Fleetwood Enterprises Inc.* 20,632 186,720 Conmed Corp.+ 9,698 186,080 SLI Inc. 22,179 185,195 Myers Industries Inc. 13,648 184,248 Checkpoint Systems Inc.+ 19,436 183,670 Key Productions Co. Inc.+ 8,844 183,513 Symmetricom Inc.+ 15,085 182,906 Ciber Inc.+* 37,474 182,873 Robbins & Myers Inc. 6,969 178,406 Organogenesis Inc.+ 21,851 178,086 Standex International Corp. 7,698 176,669 RTI International Metals Inc.+ 13,068 175,765 Tetra Technologies Inc.+ 8,649 175,142 Fremont General Corp. 44,990 174,561 Pinnacle Entertainment Inc.+ 16,624 174,552 Ultimate Electronics Inc.+ 6,965 174,125 Midway Games Inc.+ 23,811 173,820 Proxim Inc.+ 17,260 173,679 Volt Information Sciences Inc.+ 9,623 173,118 InterVoice-Brite Inc.+ 21,278 172,884 Elcor Corp. 12,306 172,038 Mesa Air Group Inc.+ 20,510 171,771 Inter-Tel Inc. 16,843 171,588 Three-Five Systems, Inc.+ 13,945 170,129 Photon Dynamics Inc.+ 8,014 169,296 Sturm Ruger & Co. Inc. 17,131 168,226 Schweitzer-Mauduit International Inc. 9,486 167,428 United Natural Foods Inc.+ 11,692 164,390 Omnova Solutions Inc. 24,749 164,333 K Swiss Inc. "A" 6,412 164,308 ESS Technology Inc.+ 28,344 162,978 MapInfo Corp.+ 9,180 162,945 Thor Industries Inc. 7,441 161,842 Astec Industries Inc.+ 12,344 161,244 Advanced Tissue Sciences Inc.+ 40,887 160,993 Bel Fuse Inc. "B" 6,890 160,623 Group 1 Automotive Inc.+ 12,546 157,452 Southwestern Energy Company 15,867 157,083 Gymboree Co.+ 15,585 155,850 CDI Corp.+ 11,985 155,805 Steak n Shake Company (The)+ 18,100 155,660 Champion Enterprises Inc.+ 29,979 154,392 Standard Microsystems Corp.+ 10,149 152,869 Quanex Corp. 8,511 152,772 Landry's Seafood Restaurants Inc. 13,388 151,954 Griffon Corporation+ 19,140 151,206 - -------------------------------------------------------------------------------- iSHARES SCHEDULES OF INVESTMENTS PAGE 53 iSHARES S&P SMALLCAP 600 INDEX FUND SCHEDULE OF INVESTMENTS (CONTINUED) MARCH 31, 2001 SECURITY SHARES VALUE - ------------------------------------------------------------------ COMMON STOCKS (CONTINUED) - ------------------------------------------------------------------ New England Business Service Inc. 8,158 $ 150,923 Lawson Products Inc. 6,094 150,826 Deltic Timber Corp. 7,393 149,708 Pre-Paid Legal Services Inc.+* 14,423 149,422 Wabash National Corp. 14,507 148,697 SCM Microsystems Inc.+* 9,571 147,752 SPSS Inc.+ 8,655 146,594 Shopko Stores Inc.+ 18,250 146,000 Aspect Communications Corp.+ 32,850 145,259 Cascade Natural Gas Corp. 7,124 144,973 Orbital Sciences Corp.+ 23,636 141,816 Arqule Inc.+ 10,670 141,377 Pegasus Solutions Inc.+ 15,625 139,160 C-COR.net Corp.+ 20,702 138,445 Aware Inc.+ 14,374 138,350 Midwest Express Holdings Inc.+ 8,703 137,594 Sola International Inc.+ 15,241 137,321 X-Rite Inc. 13,865 136,016 Lindsay Manufacturing Co. 7,351 135,993 Caraustar Industries Inc. 16,796 134,893 Magnetek Inc.+ 14,198 133,887 Midas Inc. 9,950 130,345 Cygnus Inc.+* 17,210 128,559 National Presto Industries Inc. 4,291 128,515 Startek Inc.+ 8,973 127,058 Nash Finch Co. 7,231 125,639 Apogee Enterprises Inc. 17,581 125,265 Concord Camera Corp.+ 17,570 124,088 Central Vermont Public Service Corporation 7,456 122,949 Jakks Pacific Inc.+ 11,571 122,942 Bangor Hydro-Electric Co. 4,671 122,520 SpeedFam-IPEC Inc.+ 18,786 121,522 Theragenics Corp.+ 18,956 121,129 Polaroid Corp. 28,310 120,601 Information Resources Inc.+ 18,456 119,964 Valence Technology Inc.+* 26,150 119,309 Auspex Systems Inc.+ 28,625 118,078 SCPIE Holdings Inc. 5,809 117,923 Itron Inc.+* 9,922 117,824 Action Performance Companies Inc.+* 10,357 116,516 Salton Inc.+* 7,565 114,988 Bell Microproducts Inc.+ 10,153 114,856 Fedders Corp. 20,409 114,290 MRO Software Inc.+ 14,100 113,681 MGI Pharma Inc.+ 10,356 113,269 Cleveland-Cliffs Inc. 6,270 112,860 Skyline Corp. 5,157 111,236 Luby's Inc. 14,513 110,299 Audiovox Corp. "A"+ 14,138 108,244 Pope & Talbot Inc. 8,702 107,905 Lydall Inc.+ 10,142 105,477 Consolidated Graphics Inc.+ 8,189 102,362 Franklin Covey Co.+ 12,619 102,088 Alliance Pharmaceutical Corp.+ 31,293 101,702 Supertex Inc.+ 8,044 101,556 Cash American Investments Inc. 16,399 100,034 BMC Industries Inc. 17,832 99,503 Quaker Chemical Corp. 5,583 98,763 K2 Inc.+ 11,260 98,525 Flow International Corp.+ 9,270 97,335 Gerber Scientific Inc. 14,579 97,242 Wolverine Tube Inc.+ 7,582 95,912 Davox Corp.+ 8,350 94,981 Insurance Auto Auctions Inc.+ 7,679 94,068 CPI Corp. 4,748 93,773 Goody's Family Clothing Inc.+ 20,733 93,298 Bassett Furniture Industries Inc. 7,225 92,119 Butler Manufacturing Co. 3,968 91,264 PC-Tel Inc.+ 12,150 91,125 Applica Inc.+ 14,503 89,919 J & J Snack Foods Corp.+ 5,325 89,527 Coachmen Industries Inc. 9,887 88,489 4Kids Entertainment Inc.+* 7,762 87,478 Brightpoint Inc.+ 36,109 86,887 Concord Communications Inc.+ 10,599 86,779 Labor Ready Inc.+ 27,513 86,666 Oxford Industries Inc. 4,740 85,794 Hancock Fabrics Inc. 11,185 84,447 Standard Motor Products Inc.* 7,927 84,026 TBC Corp.+ 13,795 83,632 International Fibercom Inc.+ 21,496 83,297 Boston Communications Group Inc.+ 10,979 80,970 Pac-West Telecomm Inc.+ 23,123 80,931 Cross (A.T.) Company+ 10,897 80,311 Discount Auto Parts Inc.+ 10,498 80,205 Castle (A.M.) & Co. 8,817 79,265 Sierra Health Services Inc.+ 17,361 79,166 eLoyalty Corp.+ 32,149 78,363 QRS Corp.+ 9,182 78,047 Department 56 Inc.+ 8,751 77,884 Building Materials Holdings Corp.+ 7,957 77,829 Analysts International Corp. 14,624 75,862 - -------------------------------------------------------------------------------- PAGE 54 iShares iSHARES S&P SMALLCAP 600 INDEX FUND SCHEDULE OF INVESTMENTS (CONTINUED) MARCH 31, 2001 SECURITY SHARES VALUE - ------------------------------------------------------------------ COMMON STOCKS (CONTINUED) - ------------------------------------------------------------------ ZixIt Corp.+* 10,713 $ 75,326 Kroll-O'Gara Co. (The)+ 13,985 75,169 Natures Sunshine Products Inc. 10,584 73,427 Material Sciences Corp.+ 9,014 72,563 Visual Networks Inc.+ 19,631 69,935 ePresence Inc.+ 15,191 69,309 Spacelabs Medical Inc.+ 5,931 66,724 P-Com Inc.+ 51,921 66,524 E.W. Blanch Holdings Inc. 8,251 65,595 Computer Task Group Inc. 13,664 63,538 Green Mountain Power Corp. 3,743 62,620 Tenneco Automotive Inc. 22,359 62,605 Angelica Corp. 5,331 61,840 Hartmarx Corp.+ 19,029 60,512 Network Equipment Technologies Inc.+ 14,014 59,560 Nelson (Thomas) Inc. 9,191 59,466 Enesco Group Inc.+ 8,614 57,369 Mississippi Chemical Corp. 16,693 56,088 Robotic Vision Systems Inc.+ 22,851 55,699 AVT Corp.+ 19,781 55,634 Digi International Inc.+ 9,606 55,535 Ashworth Inc.+ 8,495 54,687 Haggar Corp. 3,986 51,071 Brooktrout Inc.+ 8,176 50,589 Amcast Industrial Corp. 5,433 50,255 Cone Mills Corp.+ 15,709 49,483 Innovex Inc.+ 10,011 49,429 Immune Response Corp.+* 19,271 48,780 Jo-Ann Stores Inc.+ 11,042 48,585 Mayor's Jewelers Inc.+ 12,139 48,556 Osteotech Inc.+ 8,982 48,278 Commonwealth Industries 10,640 46,550 Meade Instruments Corp.+* 11,167 46,064 IMCO Recycling Inc. 10,176 45,894 Titan International Inc. 12,890 45,760 Huffy Corp.+ 6,955 45,625 Intermet Corp. 15,971 43,920 Steel Technologies Inc. 6,903 43,791 Penford Corp. 4,904 43,217 Lillian Vernon Corporation 5,406 39,464 Gottschalks Inc.+ 7,651 38,638 Hologic Inc.+ 9,464 37,856 Royal Appliance Manufacturing Co.+ 9,282 36,200 Edgewater Technology Inc.+ 8,332 34,239 Curative Health Services Inc.+ 4,826 27,508 SHARES OR SECURITY PRINCIPAL VALUE - ------------------------------------------------------------------ Casual Male Corp. 9,139 $ 27,417 Exabyte Corp.+ 14,769 21,230 Cyrk Inc.+ 9,471 18,942 - ------------------------------------------------------------------ TOTAL COMMON STOCKS (Cost: $219,463,240) 208,166,546 - ------------------------------------------------------------------ SHORT TERM INSTRUMENTS - 5.48% - ------------------------------------------------------------------ Dreyfus Money Market Fund++ $4,388,786 4,388,786 Federal National Mortgage Association Discount Note 4.77%, 04/05/01++ 938,465 938,465 Goldman Sachs Financial Square Prime Obligation Fund++ 2,105,648 2,105,648 Providian Temp Cash Money Market Fund++ 3,970,807 3,970,807 - ------------------------------------------------------------------ TOTAL SHORT TERM INSTRUMENTS (Cost: $11,403,706) 11,403,706 - ------------------------------------------------------------------ REPURCHASE AGREEMENT - 0.01% - ------------------------------------------------------------------ Investors Bank & Trust Tri-Party Repurchase Agreement, dated 03/30/01, due 04/02/01, with a maturity value of $17,195 and an effective yield of 4.90%. 17,187 17,187 - ------------------------------------------------------------------ TOTAL REPURCHASE AGREEMENT (Cost: $17,187) 17,187 - ------------------------------------------------------------------ TOTAL INVESTMENTS IN SECURITIES -- 105.53% (Cost $230,884,133) 219,587,439 - ------------------------------------------------------------------ Other Assets, Less Liabilities -- (5.53%) (11,505,974) - ------------------------------------------------------------------ NET ASSETS -- 100.00% $208,081,465 ================================================================== * Denotes all or part of security on loan. See Note 5. + Non-income earning securities. ++ Represents investment of collateral received from securities lending transactions. See Note 5. SEE NOTES TO FINANCIAL STATEMENTS. - -------------------------------------------------------------------------------- iSHARES SCHEDULES OF INVESTMENTS PAGE 55 iSHARES S&P SMALLCAP 600/BARRA GROWTH INDEX FUND SCHEDULE OF INVESTMENTS MARCH 31, 2001 SECURITY SHARES VALUE - --------------------------------------------------------------- COMMON STOCKS - 100.33% - --------------------------------------------------------------- Universal Health Services Inc. "B"+ 5,651 $ 498,983 Eaton Vance Corp. 13,353 414,611 Patterson Dental Co.+ 12,766 392,555 Timberland Co. "A"+ 7,524 382,219 Varian Medical Systems Inc.+ 6,207 377,386 Cephalon Inc.+* 7,837 376,666 Barrett Resources Corp.+ 6,258 375,793 Cross Timbers Oil Co. 14,493 358,702 Shaw Group Inc.+ 7,672 358,359 Commerce Bancorp Inc. 5,954 357,240 Cullen/Frost Bankers Inc. 9,814 336,129 Priority Healthcare Corp. "B"+ 8,590 324,273 Louis Dreyfus Natural Gas Corp.+ 8,318 307,766 AdvancePCS+ 5,607 304,267 Pogo Producing Co. 10,085 297,608 Newfield Exploration Co.+ 8,049 280,910 RSA Security Inc.+ 11,183 276,080 NVR Inc.+ 1,572 256,236 Medicis Pharmaceutical Corp. "A"+ 5,705 255,698 Ethan Allen Interiors Inc. 7,468 252,269 SkyWest Inc. 10,629 247,124 New York Community Bancorp 8,483 245,992 Stone Energy Corp.+ 4,912 242,014 ResMed Inc.+* 5,903 238,481 Renal Care Group Inc.+ 8,797 235,936 Alliant Techsystems Inc.+ 2,652 234,835 Ruby Tuesday Inc. 11,960 234,536 Zebra Technologies Corp. "A"+ 5,970 227,606 CEC Entertainment Inc.+ 5,131 227,560 99 Cents Only Stores+ 9,732 224,907 Cerner Corp.+ 6,542 224,063 Jack in the Box Inc.+ 7,309 218,905 Cheesecake Factory (The)+ 5,901 217,231 BARRA Inc.+ 3,980 214,920 Whole Foods Market Inc.+* 5,046 212,563 Copart Inc.+ 10,346 211,990 Linens 'N Things Inc.+ 7,568 208,120 Roper Industries Inc. 5,790 207,282 Techne Corp.+ 7,845 204,951 Polaris Industries Partners LP "A" 4,480 202,496 Pharmaceutical Product Development Inc.+ 4,745 199,883 Stillwater Mining Co.+ 7,321 198,033 Cambrex Corp. 4,762 197,861 Lone Star Technologies Inc.+ 4,466 190,921 Orthodontic Centers of America Inc.+* 9,220 189,010 Mid Atlantic Medical Services Inc.+ 9,275 188,282 FactSet Research Systems Inc. 6,227 188,055 Read-Rite Corp.+ 22,410 185,779 Province Healthcare Co.+ 5,830 177,451 Delta & Pine Land Co. 7,250 174,725 Respironics Inc.+ 5,704 173,972 Performance Food Group Co.+ 3,268 171,570 Southwest Bancorp of Texas Inc.+ 5,424 170,178 Applebee's International Inc. 4,768 170,158 Atlantic Coast Airlines Holdings Inc.+ 8,076 169,596 Anchor Gaming+ 2,760 169,050 Pacific Sunwear of California Inc.+ 6,096 167,640 Insight Enterprises Inc.+ 7,844 165,705 Vicor Corp.+ 8,058 165,189 Idex Corp. 5,695 165,041 Insituform Technologies Inc. "A"+ 5,047 164,658 Black Box Corp.+ 3,643 162,341 Graco Inc. 5,744 160,832 Fair Isaac and Co. Inc. 2,719 159,089 Haemonetics Corp.+ 4,790 158,549 Technitrol Inc. 6,336 157,703 Accredo Health Inc.+ 4,807 157,129 Harman International Industries Inc. 6,105 156,227 CAL Dive International Inc.+ 6,138 155,752 Mercury Computer Systems Inc.+ 4,058 155,726 Tetra Tech Inc.+ 7,682 155,561 Regeneron Pharmaceuticals Inc.+ 7,001 155,335 HS Resources Inc.+ 3,444 154,980 Advanced Energy Industries Inc.+ 5,975 154,230 TrustCo Bank Corp. 11,706 150,715 Footstar Inc.+ 3,722 149,438 Cabot Oil & Gas Corp. "A" 5,521 149,067 Swift Energy Co.+ 4,649 148,954 Syncor International Corp.+ 4,566 147,254 National Data Corp. 6,284 146,731 THQ Inc.+ 3,844 146,072 Bally Total Fitness Holding Corp.+ 4,897 144,217 ADVO Inc.+ 3,861 142,471 Sybron Dental Specialties Inc.+ 6,666 139,986 IDEXX Laboratories Inc.+ 6,334 138,952 Impath Inc.+ 2,983 138,337 C&D Technologies Inc. 4,971 137,200 Diagnostic Products Corp. 2,613 136,268 Aspen Technology Inc.+ 5,666 135,276 Baldor Electric Co. 6,423 135,204 Dionex Corp.+ 4,220 132,666 Forward Air Corp.+ 4,047 132,286 - -------------------------------------------------------------------------------- PAGE 56 iSHARES iSHARES S&P SMALLCAP 600/BARRA GROWTH INDEX FUND SCHEDULE OF INVESTMENTS (CONTINUED) MARCH 31, 2001 SECURITY SHARES VALUE - --------------------------------------------------------------- COMMON STOCKS (CONTINUED) - --------------------------------------------------------------- Cooper Companies Inc. 2,755 $ 130,449 Alpha Industries Inc.+ 8,192 129,024 Sonic Corp.+ 5,029 126,039 Cymer Inc.+ 5,796 125,367 Arbitron Inc.+ 5,520 122,820 Heartland Express Inc.+ 4,825 121,831 MAXIMUS Inc.+ 4,005 118,588 Noven Pharmaceuticals Inc.+ 4,182 118,403 DMC Stratex Networks Inc.+ 14,062 116,715 Manitowoc Co. Inc. 4,690 116,312 C-Cube Microsystems Inc.+ 9,365 115,307 Aeroflex Inc.+ 11,104 114,510 Quiksilver Inc.+ 4,275 113,501 Genesco Inc.+ 4,072 111,573 Chico's FAS Inc.+* 3,328 109,200 NYFIX Inc.+ 4,749 108,930 CTS Corp. 5,231 108,543 WMS Industries Inc.+ 6,020 108,360 Hooper Holmes Inc. 12,543 107,744 Landstar System Inc.+ 1,587 107,519 MacDermid Inc. 5,946 107,504 Dendrite International Inc.+ 7,627 106,778 Heidrick & Struggles International Inc.+ 3,651 105,651 SCP Pool Corp.+ 3,226 104,845 Triarc Companies Inc.+ 4,255 104,673 Georgia Gulf Corp. 5,950 103,589 FileNET Corp.+ 6,600 103,538 Rogers Corp.+ 2,879 102,233 Helix Technology Corp. 4,244 99,668 Morrison Management Specialist Inc. 2,435 97,132 Progress Software Corp.+ 6,668 96,686 Administaff Inc.+ 5,219 94,725 INAMED Corp.+ 3,900 92,625 Cryolife Inc.+ 3,553 92,129 On Assignment Inc.+ 4,399 91,829 Cost Plus Inc.+ 3,967 91,489 Power Integrations Inc.+ 5,240 90,390 CUNO Inc.+ 3,109 90,161 BE Aerospace Inc.+ 4,829 88,733 Hilb Rogal & Hamilton Co. 2,504 87,640 Stein Mart Inc.+ 7,988 87,369 UCBH Holdings Inc. 1,791 87,199 Libbey Inc. 2,911 86,922 Sterling Bancshares Inc. 4,958 86,765 Enzo Biochem Inc.+* 5,149 86,452 Trimble Navigation Ltd.+ 4,446 84,196 Teledyne Technologies Inc.+ 6,005 84,070 East West Bancorp Inc. 4,303 82,833 Dril-Quip Inc.+ 3,295 79,080 Astropower Inc.* 2,612 78,360 Artesyn Technologies Inc.+ 7,192 77,764 Carreker Corp.+ 4,009 76,171 Vital Sign Inc. 2,359 75,783 Kronos Inc.+ 2,390 75,136 Radiant Systems Inc.+ 5,210 71,963 Scott Technologies Inc.+ 3,232 71,508 Plains Resource Inc.+ 3,330 69,930 P.F. Chang's China Bistro Inc.+* 1,984 69,440 Memberworks Inc.+* 2,934 68,949 Kopin Corp.+ 11,986 68,919 Park Electrochemical Corp. 3,012 68,071 Coca-Cola Bottling Co. 1,662 67,207 Phoenix Technologies Ltd.+ 4,802 66,628 Panera Bread Co. "A"+ 2,484 66,447 Factory 2-U Stores Inc.+ 2,399 65,523 Avid Technology Inc.+ 4,840 64,735 Frontier Airlines Inc.+ 5,282 64,374 AXT Inc.+ 4,189 62,834 Arthocare Corp.+* 4,204 58,856 WD-40 Company 2,938 58,760 Oshkosh B'gosh Inc. "A" 2,301 58,675 RadiSys Corp.+ 3,294 55,998 Key Productions Co. Inc.+ 2,630 54,572 Organogenesis Inc.+ 6,538 53,285 Ultimate Electronics Inc.+ 2,086 52,150 Proxim Inc.+ 5,119 51,510 InterVoice-Brite Inc.+ 6,334 51,464 Three-Five Systems, Inc.+ 4,080 49,776 MapInfo Corp.+ 2,770 49,167 Keithley Instruments Inc. 2,980 48,276 Advanced Tissue Sciences Inc.+ 12,129 47,758 Pre-Paid Legal Services Inc.+* 4,299 44,538 SCM Microsystems Inc.+ 2,845 43,920 Arqule Inc.+ 3,200 42,400 Aware Inc.+ 4,365 42,013 Lindsay Manufacturing Co. 2,259 41,791 Cygnus Inc.+ 5,205 38,881 Startek Inc.+ 2,682 37,977 Valence Technology Inc.+* 7,742 35,323 MGI Pharma Inc.+ 3,159 34,552 Alliance Pharmaceutical Corp.+ 9,586 31,154 Supertex Inc.+ 2,361 29,808 - -------------------------------------------------------------------------------- iSHARES SCHEDULES OF INVESTMENTS PAGE 57 iSHARES S&P SMALLCAP 600/BARRA GROWTH INDEX FUND SCHEDULE OF INVESTMENTS (CONTINUED) MARCH 31, 2001 SHARES OR SECURITY PRINCIPAL VALUE - ---------------------------------------------------------------- COMMON STOCKS (CONTINUED) - ---------------------------------------------------------------- CPI Corp. 1,449 $ 28,618 International Fibercom Inc.+ 6,411 24,843 Rainbow Technologies Inc.+ 4,923 24,615 Boston Communications Group Inc.+ 3,238 23,880 P-Com Inc.+ 14,828 18,998 Immune Response Corp.+ 5,824 14,742 Meade Instruments Corp.+ 3,147 12,981 Royal Appliance Manufacturing Co.+ 2,720 10,608 - ---------------------------------------------------------------- TOTAL COMMON STOCKS (Cost: $31,561,539) 27,251,837 - ---------------------------------------------------------------- SHORT TERM INSTRUMENTS - 5.34% - ---------------------------------------------------------------- Dreyfus Money Market Fund++ $557,896 557,896 Federal National Mortgage Association Discount Note 4.77%, 04/05/01++ 111,899 111,899 Goldman Sachs Financial Square Prime Obligation Fund++ 275,063 275,063 Providian Temp Cash Money Market Fund++ 504,763 504,763 - ---------------------------------------------------------------- TOTAL SHORT TERM INSTRUMENTS (Cost: $1,449,621) 1,449,621 - ---------------------------------------------------------------- REPURCHASE AGREEMENT - 0.01% - ---------------------------------------------------------------- Investors Bank & Trust Tri-Party Repurchase Agreement, dated 03/30/01, due 04/02/01, with a maturity value of $3,347 and an effective yield of 4.90%. 3,346 3,346 - ---------------------------------------------------------------- TOTAL REPURCHASE AGREEMENT (Cost: $3,346) 3,346 - ---------------------------------------------------------------- TOTAL INVESTMENTS IN SECURITIES -- 105.68% (Cost $33,014,506) 28,704,804 - ---------------------------------------------------------------- Other Assets, Less Liabilities -- (5.68%) (1,542,590) - ---------------------------------------------------------------- NET ASSETS -- 100.00% $27,162,214 ================================================================ * Denotes all or part of security on loan. See Note 5. + Non-income earning securities. ++ Represents investment of collateral received from securities lending transactions. See Note 5. SEE NOTES TO FINANCIAL STATEMENTS. - -------------------------------------------------------------------------------- PAGE 58 iSHARES iSHARES S&P SMALLCAP 600/BARRA VALUE INDEX FUND SCHEDULE OF INVESTMENTS MARCH 31, 2001 SECURITY SHARES VALUE - --------------------------------------------------------------- COMMON STOCKS - 99.85% - --------------------------------------------------------------- Fidelity National Financial Inc. 26,645 $ 713,287 Centura Banks Inc. 13,655 675,240 Massey Energy Co. 26,197 626,632 Smithfield Foods Inc.+* 18,856 612,820 First American Corp. 22,029 572,754 D.R. Horton Inc. 26,128 552,607 Pride International Inc.+ 23,226 551,850 Constellation Brands Inc.+ 7,052 501,961 Washington Federal Inc. 19,923 489,359 Toll Brothers Inc.+ 12,425 478,363 Raymond James Financial Inc. 16,463 457,671 Alpharma Inc. "A"* 13,911 455,446 RGS Energy Group Inc. 11,976 443,112 Vintage Petroleum Inc. 21,756 442,735 Downey Financial Corp. 9,760 442,128 OM Group Inc. 8,245 439,046 Tom Brown Inc.+ 13,127 433,191 Philadelphia Suburban Corp. 18,379 433,009 Pier 1 Imports Inc. 33,214 431,782 Commercial Federal Corp. 18,773 418,638 Hudson United Bancorp 18,433 418,429 Invacare Corp. 10,484 414,328 First Midwest Bancorp Inc. 14,163 398,688 Piedmont Natural Gas Co. 11,053 392,382 Axcelis Technologies Inc.+ 33,612 388,639 Energen Corp. 10,642 375,663 AptarGroup Inc. 12,312 375,147 Scotts Co. (The) "A"+ 9,851 374,831 Cognex Corp.+ 15,025 371,869 La-Z-Boy Inc. 20,861 371,326 Southern Union Co.+ 17,660 370,860 Varian Semiconductor Equipment Associates Inc.+ 11,124 355,273 O'Reilly Automotive Inc.+ 17,728 353,452 Fleming Companies Inc.* 13,705 348,792 Zale Corp.+ 12,010 348,290 Mueller Industries Inc.+ 11,581 347,893 Coventry Health Care Inc.+ 20,577 340,807 Veritas DGC Inc.+ 10,586 338,223 Michaels Stores Inc.+ 11,255 336,947 Coherent Inc.+ 9,467 336,078 Hain Celestial Group Inc.+ 11,503 333,587 Silicon Valley Group Inc.+ 12,087 332,393 Atmos Energy Corp. 13,460 320,348 United Bancshares Inc. 14,462 319,972 M.D.C. Holdings Inc. 8,070 317,554 Anixter International Inc.+ 13,002 313,348 Men's Wearhouse Inc. (The)+ 14,489 312,673 Corn Products International Inc. 12,174 312,385 Earthgrains Company (The) 14,684 312,035 Whitney Holding Corp. 7,865 311,159 Staten Island Bancorp Inc. 12,209 304,004 Burlington Coat Factory Warehouse Corp. 15,351 302,415 PolyOne Corp. 32,584 296,514 Community First Bankshares Inc. 14,570 294,132 Avista Corp. 16,325 287,646 United Stationers Inc.+ 11,859 287,581 Chittenden Corp. 9,128 284,794 US Freightways Corp. 8,954 282,051 Werner Enterprises Inc. 16,279 278,778 Seacor Smit Inc.+ 5,883 265,912 Springs Industries Inc. "A" 6,212 265,874 Verity Inc.+ 11,695 265,330 Brady Corp. "A" 7,870 265,219 AnnTaylor Stores Corp.+ 9,967 264,624 DuPont Photomasks Inc.+ 6,028 264,503 American Management Systems Inc.+ 14,377 263,279 Electro Scientific Industries Inc.+ 9,324 261,655 US Oncology Inc.+ 31,797 258,351 CH Energy Group Inc. 5,763 255,013 Florida Rock Industries Inc. 6,444 254,280 Foster Wheeler Corp. 14,113 253,469 Photronics Inc.+ 10,265 253,417 New Jersey Resources Corp. 6,121 251,879 Trenwick Group Ltd. 12,705 250,670 ABM Industries Inc. 7,960 248,750 Jeffries Group Inc. 8,496 245,110 Susquehanna Bancshares Inc. 13,575 244,350 Brooks Automation Inc.+ 5,960 236,910 First BanCorp. 9,146 236,881 UniSource Energy Corp. 11,231 235,851 UIL Holdings Corporation 4,954 235,315 Tredegar Corporation 13,174 231,862 Avant! Corp.+ 13,306 229,528 UGI Corp. 9,365 229,349 Kulicke & Soffa Industries Inc.+ 16,908 229,315 Central Parking Corp. 12,580 228,956 Southwest Gas Corp. 10,950 228,308 Methode Electronics Inc. "A" 12,370 221,887 Standard-Pacific Corp. 10,379 218,997 MAF Bancorp Inc. 7,992 218,781 South Financial Group Inc. (The) 14,968 213,294 Wellman Inc. 11,002 211,789 Milacron Inc. 11,650 210,982 - -------------------------------------------------------------------------------- iSHARES SCHEDULES OF INVESTMENTS PAGE 59 iSHARES S&P SMALLCAP 600/BARRA VALUE INDEX FUND SCHEDULE OF INVESTMENTS (CONTINUED) MARCH 31, 2001 SECURITY SHARES VALUE - --------------------------------------------------------------- COMMON STOCKS (CONTINUED) - --------------------------------------------------------------- Wolverine World Wide Inc. 14,375 $ 209,588 Northwest Natural Gas Co. 8,715 209,160 Texas Industries Inc. 7,194 208,842 Regis Corp. 14,157 207,046 Delphi Financial Group Inc. "A" 6,993 206,993 Russell Corp. 11,044 206,523 Simpson Manufacturing Co. Inc.+ 4,171 205,630 Remedy Corp.+ 10,659 205,186 Provident Bankshares Corp. 9,170 205,179 Elantec Semiconductor Inc.+ 7,740 205,108 Oshkosh Truck Corp. 5,774 204,977 Casey's General Store Inc. 17,133 204,525 Reliance Steel & Aluminum Co. 8,671 203,335 Cable Design Technologies Corp.+ 15,156 203,090 Selective Insurance Group Inc. 8,692 201,953 Toro Co. 4,367 200,882 Analogic Corp. 4,464 200,601 SPS Technologies Inc.+ 4,421 199,210 Lennox International Inc. 19,217 197,935 Nautica Enterprises Inc.+ 10,975 196,864 HNC Software Inc.+ 11,156 195,927 NorthWestern Corp. 7,997 195,927 Atwood Oceanics Inc.+ 4,788 195,925 CLARCOR Inc. 8,414 194,363 NBTY Inc.+ 22,827 194,030 ATMI Inc.+ 10,460 193,510 American Italian Pasta Co. "A"+ 6,017 192,544 Ryland Group Inc. 4,583 190,195 Owens & Minor Inc. 11,461 189,450 Michael Foods Inc. 6,322 188,870 JLG Industries Inc. 14,524 188,812 Patina Oil & Gas Corp. 7,011 187,194 FYI Inc.+ 5,566 186,113 Ralcorp Holdings Inc.+ 10,351 185,283 Datascope Corp. 5,116 185,135 Hyperion Solutions Corp.+ 11,450 184,631 Harland (John H.) Co. 9,871 184,588 Fossil Inc.+ 10,619 184,505 Mentor Corp. 8,197 184,433 Offshore Logistics Inc.+ 7,419 184,084 Agribrands International Inc.+ 3,395 183,262 Paxar Corp.+ 14,597 182,463 St. Mary Land & Exploration Co. 7,824 181,908 Ultratech Stepper Inc.+ 7,356 181,142 Kent Electronics Corp.+ 9,926 178,668 Steel Dynamics Inc.+ 15,763 175,363 Russ Berrie & Co. Inc. 6,884 173,614 Alliance Semiconductor Corp.+ 14,771 171,713 Oceaneering International Inc.+ 7,953 170,990 Actel Corp.+ 8,355 170,755 Belden Inc. 8,451 169,443 Global Payments Inc.+ 9,156 169,386 Prime Hospitality Corp.+ 15,591 168,383 Tower Automotive Inc.+ 15,574 167,109 FirstFed Financial Corp.+ 5,964 166,992 Kirby Corp.+ 8,319 166,380 LandAmerica Financial Group Inc. 4,670 166,159 Input/Output Inc.+ 17,730 165,775 Arch Chemicals Inc. 7,663 163,222 Kellwood Co. 7,854 162,970 General Communication Inc. "A"+ 18,105 162,945 Arnold Industries Inc. 8,528 162,565 Rare Hospitality International Inc.+ 6,456 160,593 Penton Media Inc. 11,018 160,312 Information Holdings Inc.+ 7,487 160,222 AO Smith Corp. "B" 8,154 159,248 Tucker Anthony Sutro Corporation 8,287 157,039 Seitel Inc.+ 8,442 157,021 Riggs National Corp. 9,832 156,083 GenCorp. Inc. 14,694 156,050 Standard Register Co. 9,478 154,491 Watts Industries Inc. "A" 9,174 153,206 Esterline Technologies Corp.+ 7,008 152,424 SONICblue Inc.+ 32,047 152,223 Laclede Gas Co. 6,531 152,172 Spherion Corporation+ 21,558 149,613 Pinnacle Systems Inc.+ 17,684 149,209 Dress Barn Inc.+ 6,346 148,734 Roadway Express Inc. 6,696 147,312 Ionics Inc.+ 5,635 146,510 Aztar Corp.+ 13,697 145,325 Phillips-Van Heusen Corporation 9,453 142,551 G&K Services Inc. "A" 7,105 141,656 Yellow Corporation+ 8,216 140,699 Zenith National Insurance Corp. 5,952 140,467 Fritz Companies Inc.+ 12,734 139,278 Marcus Corp. 10,087 139,201 RLI Corp. 3,404 139,019 IHOP Corp.+ 6,932 138,640 Buckeye Technologies Inc.+ 11,961 137,551 Armor Holdings Inc.+ 7,790 137,104 Valmont Industries Inc. 8,064 136,584 ChemFirst Inc. 5,125 136,581 Benchmark Electronics Inc.+ 6,763 131,878 - -------------------------------------------------------------------------------- PAGE 60 iSHARES iSHARES S&P SMALLCAP 600/BARRA VALUE INDEX FUND SCHEDULE OF INVESTMENTS (CONTINUED) MARCH 31, 2001 SECURITY SHARES VALUE - --------------------------------------------------------------- COMMON STOCKS (CONTINUED) - --------------------------------------------------------------- School Specialty Inc.+ 6,052 $ 130,496 Cato Corp. "A" 8,616 129,779 Intermagnetics General Corp.+ 5,316 128,913 Hutchinson Technology Inc.+* 8,608 128,582 Bowne & Co. Inc. 11,507 127,152 Kaman Corp. "A" 7,705 126,169 Winnebago Industries Inc. 7,112 125,882 Allen Telecom Inc.+ 9,691 125,014 International Multifoods Corp. 6,486 124,855 General Semiconductor Inc.+ 13,101 124,066 Hughes Supply Inc. 8,423 123,144 Wet Seal Inc. "A"+ 4,793 122,821 Barnes Group Inc. 6,450 122,550 Micros Systems Inc.+ 6,015 121,804 Pediatrix Medical Group Inc.+ 5,485 121,767 Great Atlantic & Pacific Tea Co. 13,284 121,549 Interface Inc. "A" 17,671 121,488 Chesapeake Corp. 5,239 121,283 Regal-Beloit Corp. 7,281 121,229 NUI Corp. 4,481 120,987 Chemed Corp. 3,470 120,582 AAR Corp. 9,331 119,064 Dimon Inc. 15,447 118,942 Electroglas Inc.+ 7,207 118,915 Bio-Technology General Corp.+ 18,989 118,491 M.S. Carriers Inc.+ 3,865 118,366 Monaco Coach Corp.+ 6,560 117,818 Ryan's Family Steak Houses Inc.+ 11,042 117,321 Pioneer-Standard Electronics Inc. 9,543 116,902 APW Ltd.+ 13,580 116,516 O'Charley's Inc.+ 5,524 115,659 American States Water Co. 3,492 115,620 Viasat Inc.+ 7,619 115,237 Brown Shoe Company Inc. 6,109 115,155 GBC Bancorp 3,991 113,743 Arctic Cat Inc. 8,262 113,086 Pep Boys-Manny Moe & Jack Inc. 18,490 112,604 Commercial Metals Co. 4,485 112,573 Harmonic Inc.+* 20,010 112,556 Applied Industrial Technologies Inc. 6,853 112,389 Pericom Semiconductor Corp.+ 8,643 111,279 Aaron Rents Inc. "B" 6,872 110,639 URS Corp.+ 5,820 110,580 Anchor BanCorp Wisconsin Inc. 7,937 110,126 Cohu Inc. 7,010 109,093 Arkansas Best Corp.+ 6,924 109,053 Nuevo Energy Co.+ 6,109 108,251 Thomas Industries Inc. 5,227 108,199 Stride Rite Corp. 14,412 108,090 Brush Engineered Materials 5,742 107,088 Watsco Inc. 9,204 106,582 Parexel International Corp.+ 8,513 105,880 CACI International Inc. "A"+ 3,919 105,813 Universal Forest Products Inc. 6,926 104,756 Polymedica Industries Corp.+* 4,594 104,514 Gardner Denver Inc.+ 5,319 104,252 Profit Recovery Group International Inc. (The)+ 16,615 103,844 Systems & Computer Technology Corp.+ 11,294 103,764 Mutual Risk Management Ltd. 14,268 103,443 Southwest Securities Group Inc.* 5,508 102,889 Remington Oil & Gas Corp.+ 7,442 102,793 Fleetwood Enterprises Inc.* 11,346 102,681 Conmed Corp.+ 5,311 101,905 Myers Industries Inc. 7,481 100,994 Ciber Inc.+ 20,643 100,738 SLI Inc. 12,023 100,392 Checkpoint Systems Inc.+ 10,485 99,083 Symmetricom Inc.+ 8,128 98,552 Robbins & Myers Inc. 3,802 97,331 RTI International Metals Inc.+ 7,224 97,163 Standex International Corp. 4,216 96,757 Pinnacle Entertainment Inc.+ 9,148 96,054 Tetra Technologies Inc.+ 4,719 95,560 Midway Games Inc.+ 13,070 95,411 Volt Information Sciences Inc.+ 5,268 94,771 Fremont General Corp. 24,232 94,020 Mesa Air Group Inc.+ 11,173 93,574 Inter-Tel Inc. 9,159 93,307 Elcor Corp. 6,651 92,981 Schweitzer-Mauduit International Inc. 5,192 91,639 Photon Dynamics Inc.+ 4,329 91,450 Sturm Ruger & Co. Inc. 9,312 91,444 Omnova Solutions Inc. 13,722 91,114 Thor Industries Inc. 4,156 90,393 K Swiss Inc. "A" 3,481 89,201 United Natural Foods Inc.+ 6,339 89,126 ESS Technology Inc.+ 15,225 87,544 Astec Industries Inc.+ 6,671 87,140 Group 1 Automotive Inc.+ 6,911 86,733 CDI Corp.+ 6,615 85,995 Bel Fuse Inc. "B" 3,684 85,883 Southwestern Energy Company 8,664 85,774 Steak n Shake Company (The)+ 9,880 84,968 - -------------------------------------------------------------------------------- iSHARES SCHEDULES OF INVESTMENTS PAGE 61 iSHARES S&P SMALLCAP 600/BARRA VALUE INDEX FUND SCHEDULE OF INVESTMENTS (CONTINUED) MARCH 31, 2001 SECURITY SHARES VALUE - --------------------------------------------------------------- COMMON STOCKS (CONTINUED) - --------------------------------------------------------------- Landry's Seafood Restaurants Inc. 7,461 $ 84,682 Gymboree Co.+ 8,446 84,460 Champion Enterprises Inc.+ 16,355 84,228 Quanex Corp. 4,691 84,203 Deltic Timber Corp. 4,155 84,139 Standard Microsystems Corp.+ 5,533 83,341 Lawson Products Inc. 3,359 83,135 New England Business Service Inc. 4,473 82,751 Wabash National Corp. 7,964 81,631 Griffon Corporation+ 10,272 81,149 SPSS Inc.+ 4,718 79,911 Shopko Stores Inc.+ 9,937 79,496 Aspect Communications Corp.+ 17,745 78,466 Orbital Sciences Corp.+ 13,007 78,042 Cascade Natural Gas Corp. 3,832 77,981 Pegasus Solutions Inc.+ 8,541 76,068 Midwest Express Holdings Inc.+ 4,802 75,920 C-COR.net Corp.+ 11,185 74,800 Sola International Inc.+ 8,202 73,900 Magnetek Inc.+ 7,749 73,073 Caraustar Industries Inc. 9,082 72,940 X-Rite Inc. 7,400 72,594 National Presto Industries Inc. 2,395 71,730 Nash Finch Co. 3,975 69,066 Midas Inc. 5,255 68,841 Apogee Enterprises Inc. 9,643 68,706 Bangor Hydro-Electric Co. 2,555 67,018 SpeedFam-IPEC Inc.+ 10,356 66,990 Polaroid Corp. 15,659 66,707 Concord Camera Corp.+ 9,440 66,670 Jakks Pacific Inc.+ 6,223 66,119 SCPIE Holdings Inc. 3,237 65,711 Central Vermont Public Service Corporation 3,980 65,630 Theragenics Corp.+ 10,225 65,338 Information Resources Inc.+ 10,028 65,182 Auspex Systems Inc.+ 15,558 64,177 Action Performance Companies Inc.+ 5,680 63,900 Cleveland-Cliffs Inc. 3,504 63,072 Itron Inc.+* 5,304 62,985 Salton Inc.+* 4,119 62,609 Skyline Corp. 2,897 62,488 Fedders Corp. 11,069 61,986 MRO Software Inc.+ 7,634 61,549 Bell Microproducts Inc.+ 5,399 61,076 Audiovox Corp. "A"+ 7,811 59,803 Pope & Talbot Inc. 4,790 59,396 Luby's Inc. 7,764 59,006 Franklin Covey Co.+ 7,151 57,852 Lydall Inc.+ 5,485 57,044 Consolidated Graphics Inc.+ 4,509 56,362 K2 Inc.+ 6,227 54,486 Quaker Chemical Corp. 3,060 54,131 Flow International Corp.+ 5,127 53,833 Cash American Investments Inc. 8,810 53,741 BMC Industries Inc. 9,491 52,960 Wolverine Tube Inc.+ 4,171 52,763 Bassett Furniture Industries Inc. 4,084 52,071 Butler Manufacturing Co. 2,219 51,037 Gerber Scientific Inc. 7,633 50,912 Goody's Family Clothing Inc.+ 11,263 50,683 Davox Corp.+ 4,434 50,437 Insurance Auto Auctions Inc.+ 4,066 49,808 Applica Inc.+ 7,982 49,488 J & J Snack Foods Corp.+ 2,916 49,025 Coachmen Industries Inc. 5,391 48,249 PC-Tel Inc.+ 6,427 48,203 4Kids Entertainment Inc.+ 4,187 47,187 Concord Communications Inc.+ 5,710 46,751 Brightpoint Inc.+ 19,277 46,385 Oxford Industries Inc. 2,555 46,246 Standard Motor Products Inc. 4,302 45,601 Hancock Fabrics Inc. 5,986 45,194 Labor Ready Inc.+ 14,339 45,168 TBC Corp.+ 7,344 44,523 Discount Auto Parts Inc.+ 5,784 44,190 Castle (A.M.) & Co. 4,876 43,835 Pac-West Telecomm Inc.+ 12,450 43,575 Cross (A.T.) Company+ 5,896 43,454 Building Materials Holdings Corp.+ 4,434 43,370 Sierra Health Services Inc.+ 9,456 43,119 QRS Corp.+ 5,061 43,019 eLoyalty Corp.+ 17,260 42,071 Kroll-O'Gara Co. (The)+ 7,730 41,549 Department 56 Inc.+ 4,647 41,358 Analysts International Corp. 7,825 40,592 ZixIt Corp.+* 5,747 40,409 Natures Sunshine Products Inc. 5,737 39,800 Material Sciences Corp.+ 4,942 39,783 Visual Networks Inc.+ 10,755 38,315 ePresence Inc.+ 8,197 37,399 Spacelabs Medical Inc.+ 3,304 37,170 E.W. Blanch Holdings Inc. 4,495 35,735 Tenneco Automotive Inc. 12,357 34,600 Angelica Corp. 2,980 34,568 - -------------------------------------------------------------------------------- PAGE 62 iSHARES iSHARES S&P SMALLCAP 600/BARRA VALUE INDEX FUND SCHEDULE OF INVESTMENTS (CONTINUED) MARCH 31, 2001 SECURITY SHARES VALUE - --------------------------------------------------------------- COMMON STOCKS (CONTINUED) - --------------------------------------------------------------- Computer Task Group Inc. 7,230 $ 33,619 Hartmarx Corp.+ 10,308 32,779 Green Mountain Power Corp. 1,932 32,322 Network Equipment Technologies Inc.+ 7,577 32,202 Nelson (Thomas) Inc. 4,971 32,162 Enesco Group Inc.+ 4,669 31,096 Mississippi Chemical Corp. 9,057 30,432 Digi International Inc.+ 5,259 30,404 AVT Corp.+ 10,636 29,914 Robotic Vision Systems Inc.+ 12,227 29,803 Ashworth Inc.+ 4,534 29,188 Haggar Corp. 2,246 28,777 Cone Mills Corp.+ 8,840 27,846 Jo-Ann Stores Inc.+ 6,299 27,716 Amcast Industrial Corp. 2,911 26,927 Mayor's Jewelers Inc.+ 6,613 26,452 Brooktrout Inc.+ 4,268 26,408 Hall Kinion & Associates Inc.+ 4,558 26,351 Osteotech Inc.+ 4,847 26,053 Innovex Inc.+ 5,190 25,626 Titan International Inc. 7,184 25,503 Commonwealth Industries 5,732 25,078 Intermet Corp. 8,799 24,197 IMCO Recycling Inc. 5,311 23,953 Huffy Corp.+ 3,538 23,209 Penford Corp. 2,584 22,772 Steel Technologies Inc. 3,548 22,508 Lillian Vernon Corporation 3,005 21,936 Hologic Inc.+ 5,355 21,420 Gottschalks Inc.+ 4,160 21,008 Edgewater Technology Inc.+ 4,307 17,699 Curative Health Services Inc.+ 2,608 14,866 Casual Male Corp. 4,640 13,920 Exabyte Corp.+ 8,411 12,091 Cyrk Inc.+ 5,282 10,564 - --------------------------------------------------------------- TOTAL COMMON STOCKS (Cost: $65,828,326) 64,390,148 - --------------------------------------------------------------- SHORT TERM INSTRUMENTS - 2.20% - ---------------------------------------------------------------- Dreyfus Money Market Fund++ $547,190 $ 547,190 Federal National Mortgage Association Discount Note 4.77%, 04/05/01++ 117,007 117,007 Goldman Sachs Financial Square Prime Obligation Fund++ 262,531 262,531 Providian Temp Cash Money Market Fund++ 495,077 495,077 - ---------------------------------------------------------------- TOTAL SHORT TERM INSTRUMENTS (Cost: $1,421,805) 1,421,805 - ---------------------------------------------------------------- REPURCHASE AGREEMENT - 0.01% - ---------------------------------------------------------------- Investors Bank & Trust Tri-Party Repurchase Agreement, dated 03/30/01, due 04/02/01, with a maturity value of $3,506 and an effective yield of 4.90%. 3,504 3,504 - ---------------------------------------------------------------- TOTAL REPURCHASE AGREEMENT (Cost: $3,504) 3,504 - ---------------------------------------------------------------- TOTAL INVESTMENTS IN SECURITIES -- 102.06% (Cost $67,253,635) 65,815,457 - ---------------------------------------------------------------- Other Assets, Less Liabilities -- (2.06%) (1,325,788) - ---------------------------------------------------------------- NET ASSETS -- 100.00% $64,489,669 ================================================================ * Denotes all or part of security on loan. See Note 5. + Non-income earning securities. ++ Represents investment of collateral received from securities lending transactions. See Note 5. SEE NOTES TO FINANCIAL STATEMENTS. - -------------------------------------------------------------------------------- iSHARES SCHEDULES OF INVESTMENTS PAGE 63 iSHARES S&P GLOBAL 100 INDEX FUND SCHEDULE OF INVESTMENTS MARCH 31, 2001 SECURITY SHARES VALUE - ---------------------------------------------------------------- COMMON STOCKS - 99.73% - ---------------------------------------------------------------- AUSTRALIA - 0.37% - ---------------------------------------------------------------- Broken Hill Proprietary Co. Ltd. 25,228 $ 240,905 News Corp. Ltd. 18,530 140,202 - ---------------------------------------------------------------- 381,107 - ---------------------------------------------------------------- BELGIUM - 0.21% - ---------------------------------------------------------------- Fortis "B" 8,364 218,695 - ---------------------------------------------------------------- 218,695 - ---------------------------------------------------------------- CANADA - 0.77% - ---------------------------------------------------------------- Alcan Aluminium Ltd. 3,400 122,400 Nortel Networks Corp+ 47,600 668,780 - ---------------------------------------------------------------- 791,180 - ---------------------------------------------------------------- FINLAND - 1.58% - ---------------------------------------------------------------- Nokia OYJ 68,000 1,632,000 - ---------------------------------------------------------------- 1,632,000 - ---------------------------------------------------------------- FRANCE - 5.45% - ---------------------------------------------------------------- Alcatel SA "A" 18,734 563,935 Aventis SA 10,370 801,134 AXA UAP 4,760 526,709 Carrefour Supermarche SA 9,078 493,079 France Telecom SA 6,664 388,610 L'Oreal SA 4,760 321,715 Total SA "B" 11,220 1,513,698 Vivendi Universal SA 17,000 1,028,704 - ---------------------------------------------------------------- 5,637,584 - ---------------------------------------------------------------- GERMANY - 4.29% - ---------------------------------------------------------------- Allianz AG 1,700 488,579 BASF AG 10,200 405,745 Bayer AG* 10,200 431,563 DaimlerChrysler AG 10,200 454,064 Deutsche Bank AG 10,200 774,554 Deutsche Telekom AG* 44,200 1,039,164 Siemens AG 6,800 690,883 Volkswagen AG* 3,400 155,180 - ---------------------------------------------------------------- 4,439,732 - ---------------------------------------------------------------- ITALY - 0.59% - ---------------------------------------------------------------- Assicurazioni Generali SpA 17,000 $ 534,897 Fiat SpA 3,400 71,868 - ---------------------------------------------------------------- 606,765 - ---------------------------------------------------------------- JAPAN - 5.25% - ---------------------------------------------------------------- Bank of Tokyo-Mitsubishi Ltd. 30,600 273,396 Bridgestone Corp. 10,200 103,316 Canon Inc. 13,600 492,754 Fuji Photo Film Co. 6,800 251,250 Hitachi Ltd. 47,600 406,713 Honda Motor Co. Ltd. 10,200 415,862 Ito-Yokado Co. Ltd. 3,400 164,612 Matsushita Electric Industrial Co. Ltd. 23,800 429,264 NEC Corp. 23,800 378,663 Sony Corp. 13,600 963,848 Toshiba Corp. 44,200 257,642 Toyota Motor Corp. 37,400 1,295,510 - ---------------------------------------------------------------- 5,432,830 - ---------------------------------------------------------------- MEXICO - 0.10% - ---------------------------------------------------------------- America Movil SA LIC CV ADR+ 6,800 99,620 - ---------------------------------------------------------------- 99,620 - ---------------------------------------------------------------- NETHERLANDS - 2.51% - ---------------------------------------------------------------- Koninklijke (Royal) Philips Electronics NV 20,400 544,680 Royal Dutch Petroleum Co. -- NY Shares 30,600 1,696,464 Unilever NV -- NY Shares 6,800 357,952 - ---------------------------------------------------------------- 2,599,096 - ---------------------------------------------------------------- SPAIN - 2.32% - ---------------------------------------------------------------- Banco Bilbao Vizcaya SA 47,192 640,820 Banco Santander Central Hispano SA 66,980 609,290 Repsol YPF SA 13,362 235,699 Telefonica SA+ 56,250 899,769 Telefonica SA Rights+ 56,250 17,995 - ---------------------------------------------------------------- 2,403,573 - ---------------------------------------------------------------- SWEDEN - 0.61% - ---------------------------------------------------------------- Telefonaktiebolaget LM Ericsson AB 112,200 627,624 - ---------------------------------------------------------------- 627,624 - ---------------------------------------------------------------- - -------------------------------------------------------------------------------- PAGE 64 iSHARES iSHARES S&P GLOBAL 100 INDEX FUND SCHEDULE OF INVESTMENTS (CONTINUED) MARCH 31, 2001 SECURITY SHARES VALUE - ---------------------------------------------------------------- COMMON STOCKS (CONTINUED) - ---------------------------------------------------------------- SWITZERLAND - 3.99% - ---------------------------------------------------------------- ABB Ltd. 3,400 $ 246,874 Nestle SA 510 1,063,027 Novartis AG 1,020 1,592,336 Schweizerische Rueckversicherungs- Gesellschaft 170 341,901 UBS AG 6,120 879,929 - ---------------------------------------------------------------- 4,124,067 - ---------------------------------------------------------------- UNITED KINGDOM - 12.86% - ---------------------------------------------------------------- AstraZeneca PLC 27,574 1,315,340 Barclays PLC 25,976 809,480 BP Amoco PLC 336,702 2,782,068 British Telecommunications PLC 103,394 748,624 Diageo PLC 47,906 480,847 Glaxo Smithkline PLC+ 92,751 2,424,214 HSBC Holdings PLC 136,680 1,637,741 Marconi PLC 43,656 210,728 Reuters Group PLC 21,658 262,896 Vodafone Group PLC ADR 958,596 2,626,553 - ---------------------------------------------------------------- 13,298,491 - ---------------------------------------------------------------- UNITED STATES - 58.83% - ---------------------------------------------------------------- American International Group Inc. 34,000 2,737,000 AOL Time Warner Inc.+ 61,200 2,457,180 AT&T Corp. 57,800 1,231,140 Bristol-Myers Squibb Co. 29,308 1,740,895 Chevron Corp. 10,200 895,560 Citigroup Inc. 71,400 3,211,572 Coca-Cola Co. 34,000 1,535,440 Colgate-Palmolive Co. 8,602 475,347 Compaq Computer Corp. 27,200 495,040 Dell Computer Corp.+ 34,000 873,375 Dow Chemical Co. 13,600 429,352 Du Pont (E.I.) de Nemours 14,892 606,104 EMC Corp.+ 32,776 963,614 Exxon Mobil Corp. 51,000 4,131,000 Ford Motor Company 27,200 764,864 General Electric Co. 142,800 5,977,608 UNITED STATES (CONTINUED) - ----------------------------------------------------------------- General Motors Corp. "A" 6,800 $ 352,580 Gillette Co. 13,600 423,912 Hewlett-Packard Co. 27,200 850,544 Intel Corp. 95,744 2,519,264 International Business Machines Corp. 26,282 2,527,803 Johnson & Johnson 20,400 1,784,388 JP Morgan Chase & Co. 27,200 1,221,280 Kimberly-Clark Corp. 8,092 548,880 Lucent Technologies Inc. 50,184 500,334 McDonald's Corp. 20,400 541,620 Merck & Co. Inc. 34,000 2,580,600 Microsoft Corp.+ 75,650 4,137,109 Minnesota Mining & Manufacturing Co. 5,916 614,672 Morgan Stanley Dean Witter & Co. 17,000 909,500 PepsiCo Inc. 20,400 896,580 Pfizer Inc. 94,180 3,856,671 Philip Morris Companies Inc. 30,600 1,451,970 Procter & Gamble Co. 20,400 1,277,040 Texas Instruments Inc. 27,200 842,656 Tyco International Ltd. 25,160 1,087,667 United Technologies Corp. 6,800 498,440 Wal-Mart Stores Inc. 40,800 2,060,400 WorldCom Inc.+ 44,200 825,987 - ----------------------------------------------------------------- 60,834,988 - ----------------------------------------------------------------- TOTAL COMMON STOCKS (Cost: $121,733,276) 103,127,352 - ----------------------------------------------------------------- SHORT TERM INSTRUMENTS - 1.01% - ----------------------------------------------------------------- Dreyfus Money Market Fund++ $402,021 402,021 Federal National Mortgage Association Discount Note 4.77%, 04/05/01++ 85,965 85,965 Goldman Sachs Financial Square Prime Obligation Fund++ 192,881 192,881 Providian Temp Cash Money Market Fund++ 363,733 363,733 - ----------------------------------------------------------------- TOTAL SHORT TERM INSTRUMENTS (Cost: $1,044,600) 1,044,600 - ----------------------------------------------------------------- - -------------------------------------------------------------------------------- iSHARES SCHEDULES OF INVESTMENTS PAGE 65 iSHARES S&P GLOBAL 100 INDEX FUND SCHEDULE OF INVESTMENTS (CONTINUED) MARCH 31, 2001 SECURITY PRINCIPAL VALUE - ----------------------------------------------------------------- REPURCHASE AGREEMENT - 0.07% - ----------------------------------------------------------------- Investors Bank & Trust Tri-Party Repurchase Agreement, dated 03/30/01, due 04/02/01, with a maturity value of $70,071 and an effective yield of 4.90%. $ 70,042 $ 70,042 - ----------------------------------------------------------------- TOTAL REPURCHASE AGREEMENT (Cost: $70,042) 70,042 - ----------------------------------------------------------------- TOTAL INVESTMENTS IN SECURITIES -- 100.81% (Cost $122,847,918) 104,241,994 - ----------------------------------------------------------------- Other Assets, Less Liabilities -- (0.81%) (835,199) - ----------------------------------------------------------------- NET ASSETS -- 100.00% $103,406,795 ================================================================= * Denotes all or part of security on loan. See Note 5. + Non-income earning securities. ++ Represents investment of collateral received from securities lending transactions. See Note 5. SEE NOTES TO FINANCIAL STATEMENTS. - -------------------------------------------------------------------------------- PAGE 66 iSHARES iSHARES S&P EUROPE 350 INDEX FUND SCHEDULE OF INVESTMENTS MARCH 31, 2001 SECURITY SHARES VALUE - ------------------------------------------------------------------ COMMON STOCKS - 99.11% - ------------------------------------------------------------------ AUSTRIA - 0.03% - ------------------------------------------------------------------ OMV AG 392 $ 30,662 VA Technologie AG 294 10,969 - ------------------------------------------------------------------ 41,631 - ------------------------------------------------------------------ BELGIUM - 1.12% - ------------------------------------------------------------------ Algemene Maatschappij voor Nijverheidskredit NV 3,038 106,804 Credit Communal de Belgique SA 2,303 338,227 Electrabel SA 1,127 242,677 Fortis "B" 18,228 476,611 Groupe Bruxelles Lambert SA 490 131,308 KBC Bankverzekerings Holding NV 8,526 331,736 UCB SA 3,136 101,264 - ------------------------------------------------------------------ 1,728,627 - ------------------------------------------------------------------ DENMARK - 0.44% - ------------------------------------------------------------------ Danske Bank A/S* 19,600 309,116 Tele Danmark A/S* 4,900 170,994 Vestas Wind Systems A/S 4,900 207,615 - ------------------------------------------------------------------ 687,725 - ------------------------------------------------------------------ FINLAND - 2.42% - ------------------------------------------------------------------ Nokia OYJ 142,100 3,398,293 Sonera Group OYJ 9,800 70,629 Stora Enso OYJ* 14,700 138,759 UPM-Kymmene OYJ 4,900 137,811 - ------------------------------------------------------------------ 3,745,492 - ------------------------------------------------------------------ FRANCE - 14.30% - ------------------------------------------------------------------ Accor SA 6,713 251,047 Air Liquide 3,087 432,477 Alcatel SA "A" 34,447 1,036,930 Alstom 3,773 103,296 Assurances Generales de France 3,087 181,239 Aventis SA 22,834 1,764,041 AXA UAP 12,201 1,350,078 BNP Parisbas SA 12,887 1,079,401 Bouygues SA 5,390 180,016 Cap Gemini SA 2,940 335,914 Carrefour Supermarche SA 19,453 1,056,605 Castorama Dubois Investissement SA 539 117,105 Christian Dior SA 2,891 102,144 Compagnie de Saint Gobain 2,842 408,394 Compagnie Generale des Etablissements Michelin "B" 4,606 149,338 Credit Lyonnais SA 7,350 270,540 Dassault Systemes SA 1,225 52,756 Essilor International SA 196 55,986 Etablissements Economiques du Casino Guichard-Perrachon SA 1,176 102,170 European Aeronautic Defence and Space Co.+ 5,537 102,244 France Telecom SA 12,446 725,786 Groupe Danone 4,459 563,552 Lafarge SA 3,577 314,381 Lagardere S.C.A. 4,655 234,634 Legrand SA 441 86,472 L'Oreal SA 8,869 599,431 LVMH 13,916 697,151 Pechiney SA "A" 2,205 94,844 Pinault-Printemps-Redoute SA 3,381 579,452 PSA Peugeot Citroen 1,176 296,638 Renault SA 4,557 229,494 Sagem SA 490 37,898 Sanofi-Synthelabo SA 10,633 590,624 Schneider SA* 4,606 267,181 Societe Generale "A" 11,172 687,333 Societe Television Francaise 1* 4,312 147,234 Sodexho Alliance SA 2,744 134,934 STMicroelectronics NV 13,279 460,999 Suez Lyonnaise des Eaux SA 5,831 855,850 Thales/Ex Thomson CSF 1,960 82,084 Total SA "B" 23,961 3,232,595 Usinor SA* 8,281 101,166 Valeo SA 2,009 90,581 Vivendi Universal SA 30,870 1,868,005 - ------------------------------------------------------------------ 22,110,040 - ------------------------------------------------------------------ GERMANY - 10.37% - ------------------------------------------------------------------ Adidas AG 2,450 128,143 Allianz AG 4,900 1,408,257 BASF AG* 19,600 779,666 Bayer AG 19,600 829,278 Bayerische Hypo-und Vereinsbank AG* 14,700 790,691 Bayerische Motoren Werke AG* 19,600 595,517 Commerzbank AG* 14,700 405,810 Continental AG 4,900 73,126 DaimlerChrysler AG* 26,950 1,199,709 - ------------------------------------------------------------------ - -------------------------------------------------------------------------------- iSHARES SCHEDULES OF INVESTMENTS PAGE 67 iSHARES S&P EUROPE 350 INDEX FUND SCHEDULE OF INVESTMENTS (CONTINUED) MARCH 31, 2001 SECURITY SHARES VALUE - ------------------------------------------------------------------ COMMON STOCKS (CONTINUED) - ------------------------------------------------------------------ GERMANY (CONTINUED) - ------------------------------------------------------------------ Degussa AG+ 2,450 $ 70,650 Deutsche Bank AG 19,600 1,488,359 Deutsche Lufthansa AG* 12,250 226,096 Deutsche Post AG+ 9,800 167,096 Deutsche Telekom AG* 41,650 979,212 Dresdner Bank AG 14,700 663,948 EM TV & Merchandising AG+ 2,450 12,166 Epcos AG+ 2,450 140,503 Infineon Technologies AG+ 4,900 183,030 Linde AG 2,450 101,205 MAN AG 2,450 58,893 Metro AG 9,800 416,189 Muenchener Rueckversicherungs- Gesellschaft AG 2,450 722,001 Preussag AG* 7,350 236,497 RWE AG 12,250 438,196 SAP AG 2,450 277,237 Schering AG 4,900 237,078 Siemens AG 17,150 1,742,449 Thyssen Krupp AG 12,250 177,539 Veba AG* 22,050 1,041,657 Volkswagen AG 9,800 447,283 - ------------------------------------------------------------------ 16,037,481 - ------------------------------------------------------------------ IRELAND - 0.79% - ------------------------------------------------------------------ Allied Irish Bank PLC+ 27,930 281,805 Bank of Ireland 31,066 256,928 CRH PLC+ 12,544 191,833 CRH PLC Rights+ 64 321 Elan Corporation PLC+ 9,163 491,253 - ------------------------------------------------------------------ 1,222,140 - ------------------------------------------------------------------ ITALY - 6.03% - ------------------------------------------------------------------ Alitalia SpA+ 49,000 69,335 Alleanza Assicurazioni SpA 24,500 305,983 Assicurazioni Generali SpA 34,300 1,079,232 Banca di Roma SpA* 122,500 129,091 Banca Fideuram SpA 24,500 242,031 Banca Intesa SpA* 147,000 560,717 Bipop Carire SpA 49,000 229,972 Enel SpA* 119,805 389,594 ENI SpA* 166,600 1,083,533 Fiat SpA 9,800 207,148 Finmeccanica SpA+ 245,000 244,192 Mediaset SpA* 24,500 225,449 Mediobanca Banca SpA 12,250 112,079 Mediolanum SpA+ 24,500 253,443 Olivetti SpA* 220,500 420,538 Pirelli SpA 49,000 161,068 Riunione Adriatica di Sicurta SpA* 12,250 149,655 Rolo Banca SpA 4,900 83,290 San Paolo - IMI SpA* 36,750 493,858 Seat-Paginne Gialle Spa+ 302,232 360,986 Telecom Italia Mobile SpA* 110,250 740,307 Telecom Italia SpA* 73,500 395,342 Telecom Italia SpA "A" 75,950 760,973 Unicredito Italiano SpA* 147,000 633,070 - ------------------------------------------------------------------ 9,330,886 - ------------------------------------------------------------------ NETHERLANDS - 8.21% - ------------------------------------------------------------------ ABN AMRO Holding NV 41,650 758,842 Aegon NV 27,881 817,471 Akzo Nobel NV 9,751 402,453 ASM Lithography Holding NV+ 10,780 238,758 Burhmann NV 1,960 50,301 DSM NV 2,303 80,154 Elsevier NV 20,923 269,584 Equant NV+ 4,802 116,696 Fortis Amev NV 16,758 436,997 Getronics NV 11,515 48,882 Gucci Group NV 931 79,411 Hagemeyer NV 3,087 65,034 Heineken NV 8,918 464,794 ING Groep NV* 27,832 1,810,149 Koninklijke Ahold NV 18,228 563,602 Numico NV* 4,606 187,634 Philips Electronics NV* 37,439 1,023,346 Randstad Holding NV 2,352 28,423 Royal Dutch Petroleum Co. 60,760 3,363,777 Royal KPN NV 34,253 332,960 TNT Post Group NV 9,114 189,844 Unilever NV - CVA 16,268 859,303 United Pan-Europe Communications NV+ 5,635 34,866 VNU NV 6,468 237,905 Wolters Kluwer NV - CVA 9,457 236,801 - ------------------------------------------------------------------ 12,697,987 - ------------------------------------------------------------------ NORWAY - 0.21% - ------------------------------------------------------------------ Norsk Hydro ASA 4,900 200,227 - -------------------------------------------------------------------------------- PAGE 68 iSHARES iSHARES S&P EUROPE 350 INDEX FUND SCHEDULE OF INVESTMENTS (CONTINUED) MARCH 31, 2001 SECURITY SHARES VALUE - ------------------------------------------------------------------ COMMON STOCKS (CONTINUED) - ------------------------------------------------------------------ NORWAY (CONTINUED) - ------------------------------------------------------------------ Orkla ASA Foreign 4,900 $ 85,926 Petroleum Geo-Services+ 4,900 42,026 - ------------------------------------------------------------------ 328,179 - ------------------------------------------------------------------ PORTUGAL - 0.59% - ------------------------------------------------------------------ Banco Comercial Portugues SA "R" 55,615 252,220 Banco Espirito Santo e Comercial de Lisboa SA 2,940 43,411 Brisa-Auto Estradas de Portugal SA 9,702 90,131 Cimentos De Portugal SA 3,038 93,453 Electricidade de Portugal SA 50,029 131,911 Portugal Telecom 31,752 270,695 Telecel-Comunicacoes Pessoais SA+ 3,577 36,311 - ------------------------------------------------------------------ 918,132 - ------------------------------------------------------------------ SPAIN - 4.35% - ------------------------------------------------------------------ Acerinox SA 1,568 48,096 Altadis SA 10,045 123,600 Autopistas Concesionaria Espanola SA 4,557 44,857 Banco Bilbao Vizcaya SA 90,944 1,234,929 Banco Popular Espanol SA 7,007 230,017 Banco Santander Central Hispano SA 129,801 1,180,748 Bankinter SA 2,205 73,255 Endesa SA 30,135 495,808 Gas Natural SDG SA 4,410 69,767 Iberdrola SA 26,705 377,414 Repsol YPF SA 28,322 499,586 Telefonica SA+ 124,723 1,995,057 Telefonica SA Rights+ 101,000 32,312 Terra Networks SA+ 17,689 163,397 Union Electrica Fenosa SA 8,281 150,949 - ------------------------------------------------------------------ 6,719,792 - ------------------------------------------------------------------ SWEDEN - 2.21% - ------------------------------------------------------------------ Atlas Copco AB "B" 4,900 82,422 Electrolux AB "B"* 9,800 129,420 Hennes & Mauritz AB "B"* 14,700 206,882 Nordea AB* 73,500 446,358 Sandvik AB 4,900 89,271 Securitas AB "B"* 9,800 163,428 Skandia Forsakrings AB 29,400 262,145 Skandinaviska Enskilda Banken (SEB) "A" 14,700 130,364 Skanska AB "A" 2,450 87,618 Svenska Cellulosa AB "B" 4,900 100,135 Svenska Handelsbanken AB "B"* 19,600 280,566 Telefonakfiebolaget Ericsson AB "B"* 205,800 1,120,849 Telia AB+ 29,400 162,955 Volvo AB "B" 9,800 152,564 - ------------------------------------------------------------------ 3,414,977 - ------------------------------------------------------------------ SWITZERLAND - 9.13% - ------------------------------------------------------------------ ABB Ltd. 9,800 711,577 Adecco SA 490 256,394 Cie de Financement Foncier 245 550,484 Clariant AG 490 133,562 Credit Suisse Group 6,860 1,207,705 Nestle SA 1,225 2,553,348 Novartis AG 2,450 3,824,728 Roche Holding AG 98 705,930 SAirGroup 490 50,121 Schweizerische Rueckversicherungs- Gesellschaft 490 985,478 Swisscom AG 490 110,125 Syngenta AG+ 3,925 201,305 UBS AG 14,210 2,043,102 Zurich Financial Services AG 2,401 788,665 - ------------------------------------------------------------------ 14,122,524 - ------------------------------------------------------------------ UNITED KINGDOM - 38.91% - ------------------------------------------------------------------ Abbey National PLC 40,621 648,210 Aegis Group PLC 36,750 65,478 Alliance & Leicester PLC 18,179 187,631 Allied Domecq PLC 36,358 215,247 AMVESCAP PLC 20,237 294,489 Anglo American PLC 7,938 451,913 Arm Holdings PLC+ 28,371 132,515 Associated British Foods PLC 13,230 83,583 AstraZeneca PLC 57,330 2,734,767 AWG PLC 9,261 75,929 BAA PLC 36,358 321,321 BAE Systems PLC 101,871 454,131 Bank of Scotland 42,581 423,170 Barclays PLC 47,139 1,468,974 Bass PLC 29,890 292,802 BBA Group PLC 14,994 54,283 BG Group PLC 119,266 465,638 Billiton PLC 55,321 250,151 Blue Circle Industries PLC 21,467 146,594 BOC Group PLC 16,758 227,922 - ------------------------------------------------------------------ - -------------------------------------------------------------------------------- iSHARES SCHEDULES OF INVESTMENTS PAGE 69 iSHARES S&P EUROPE 350 INDEX FUND SCHEDULE OF INVESTMENTS (CONTINUED) MARCH 31, 2001 SECURITY SHARES VALUE - ------------------------------------------------------------------ COMMON STOCK (CONTINUED) - ------------------------------------------------------------------ UNITED KINGDOM (CONTINUED) - ------------------------------------------------------------------ Boots Co. PLC 30,625 $ 272,612 BP Amoco PLC 732,697 6,054,056 BPB Industries PLC 15,582 53,314 British Airways PLC 36,799 164,569 British American Tobacco PLC 61,985 456,724 British Land Co. PLC 17,640 124,967 British Sky Broadcasting Group PLC+ 22,393 263,870 British Telecommunications PLC 186,494 1,350,310 Bunzl PLC 15,582 92,738 Cable & Wireless PLC 79,429 535,637 Cadbury Schweppes PLC 69,139 441,708 Capita Group PLC 22,197 150,633 Carlton Communications PLC 21,805 121,351 Centrica PLC 136,073 457,845 CGU PLC 63,994 880,820 Chub PLC+ 24,892 50,359 CMG PLC+ 20,335 173,075 Cobham PLC 3,136 50,374 Colt Telecom PLC+ 17,248 179,981 Compass Group PLC+ 73,794 525,922 Cookson Group PLC 24,696 51,365 Corus Group PLC 106,134 94,173 Daily Mail and General Trust "A" 9,457 97,340 Diageo PLC 90,650 909,881 Dimension Data Holdings PLC+ 36,652 147,781 Dixons Group PLC 65,023 256,860 Electrocomponents PLC 14,749 114,747 EMAP PLC 8,624 88,521 EMI Group PLC 26,803 172,949 Energis PLC+ 28,567 113,154 Enterprise Oil PLC 16,954 136,234 Exel PLC 10,094 120,377 FirstGroup PLC 14,749 63,918 FKI PLC 19,551 53,085 Gallaher Group PLC 21,413 130,720 GKN PLC "B" 24,549 251,809 Glaxo Smithkline PLC+ 201,792 5,274,197 Granada Compass PLC 73,794 181,504 Great Universal Stores PLC 34,251 240,702 Halifax Group PLC 63,945 651,823 Hammerson PLC 9,702 69,145 Hanson PLC 24,990 144,310 Hays PLC 58,751 236,255 Hilton Group PLC 51,009 147,732 HSBC Holdings PLC 299,341 3,586,794 IMI PLC 11,956 44,132 Imperial Chemical Industries PLC* 24,794 151,008 Imperial Tobacco Group PLC 17,738 170,739 Innogy Holdings PLC 13,870 37,413 Invensys PLC 119,070 226,519 J Sainsbury PLC 39,935 218,281 Johnson Matthey PLC 7,546 102,310 Kingfisher PLC 46,844 302,598 Land Securities PLC 17,787 222,220 Lattice Group PLC+ 119,266 231,555 Legal & General Group PLC 174,930 402,322 Lloyds TSB Group PLC 168,805 1,657,209 Logica PLC 13,671 192,147 Lonrho PLC 6,027 74,442 Marconi PLC 92,806 447,975 Marks & Spencer PLC 97,853 369,532 Misys PLC 19,551 139,893 National Grid Group PLC 50,519 390,168 Next PLC 11,662 146,692 Northern Rock PLC 14,357 103,340 Nycomed Amersham PLC "A" 21,560 150,290 Old Mutual PLC 117,257 246,380 P&O Princess Cruises PLC+ 22,785 88,957 Pearson PLC 22,157 386,914 Peninsular & Oriental Steam Navigation Co. PLC 22,785 85,398 Pilkington PLC 37,436 56,337 Powergen PLC 22,148 224,822 Provident Financial PLC 8,428 95,723 Prudential Corp. PLC 56,350 602,004 Psion PLC 10,878 16,756 Railtrack Group PLC 17,493 170,616 Rank Group PLC 23,863 62,082 Reckitt Benckiser PLC 17,885 228,016 Reed International PLC 39,004 361,594 Rentokil Initial PLC 77,665 207,296 Reuters Group PLC 40,621 493,078 Rio Tinto PLC 30,870 536,873 RMC Group PLC 8,918 82,929 Rolls Royce PLC 48,804 151,395 Royal Bank of Scotland Group PLC 80,458 1,826,485 Royal Sun Alliance Industries Group PLC 48,657 330,542 Safeway PLC 35,672 166,239 Sage Group PLC 43,120 151,209 - -------------------------------------------------------------------------------- PAGE 70 iSHARES iSHARES S&P EUROPE 350 INDEX FUND SCHEDULE OF INVESTMENTS (CONTINUED) MARCH 31, 2001 SECURITY SHARES VALUE - ------------------------------------------------------------------ COMMON STOCKS (CONTINUED) - ------------------------------------------------------------------ UNITED KINGDOM (CONTINUED) - ------------------------------------------------------------------ Schroders PLC 4,606 $ 68,988 Scottish & Southern Energy PLC 29,155 257,249 Scottish Newcastle Breweries PLC 21,217 156,333 Scottish Power PLC 62,916 418,026 Sema Group PLC 9,504 75,021 Severn Trent PLC 11,662 114,986 Shell Transport & Trading Co. PLC 322,959 2,494,277 Slough Estates PLC 12,789 68,667 Smith W.H. Group PLC 8,526 64,154 Smiths Group PLC 14,558 159,557 South African Breweries PLC 19,208 124,623 Spirent PLC 21,168 106,687 Standard Chartered PLC 31,066 375,771 Tate & Lyle PLC 14,651 47,581 Telewest Communications PLC+ 48,167 78,300 Tesco PLC 197,225 702,811 3i Group PLC 20,580 327,821 Tomkins PLC 32,340 67,723 Trinity Mirror PLC 9,849 67,397 Unilever PLC 82,810 596,646 United News & Media PLC 17,150 156,557 United Utilities PLC 18,718 162,633 Vodafone Group PLC ADR 2,089,556 5,725,383 Whitbread Holdings PLC 16,905 138,361 WM Morrison Supermarkets PLC 49,294 138,565 Wolseley PLC 19,551 115,191 WPP Group PLC 26,362 279,574 - ------------------------------------------------------------------ 60,172,301 - ------------------------------------------------------------------ TOTAL COMMON STOCKS (Cost: $170,680,635) 153,277,914 - ------------------------------------------------------------------ PREFERRED STOCKS - 0.36% - ------------------------------------------------------------------ GERMANY - 0.36% - ------------------------------------------------------------------ SAP AG - Vorzug 4,900 555,120 - ------------------------------------------------------------------ 555,120 - ------------------------------------------------------------------ TOTAL PREFERRED STOCKS (Cost: $815,806) 555,120 - ------------------------------------------------------------------ Security Principal Value - ------------------------------------------------------------------ SHORT TERM INSTRUMENTS - 7.27% - ------------------------------------------------------------------ Dreyfus Money Market Fund++ $4,327,815 $ 4,327,815 Federal National Mortgage Association Discount Note 4.77%, 04/05/01++ 873,548 873,548 Goldman Sachs Financial Square Prime Obligation Fund+++ 2,128,268 2,128,268 Providian Temp Cash Money Market Fund++ 3,915,637 3,915,637 - ------------------------------------------------------------------ TOTAL SHORT TERM INSTRUMENTS (Cost: $11,245,268) 11,245,268 - ------------------------------------------------------------------ REPURCHASE AGREEMENT - 0.24% - ------------------------------------------------------------------ Investors Bank & Trust Tri-Party Repurchase Agreement, dated 03/30/01, due 04/02/01, with a maturity value of $371,786 and an effective yield of 4.90%. 371,634 371,634 - ------------------------------------------------------------------ TOTAL REPURCHASE AGREEMENT (Cost: $371,634) 371,634 - ------------------------------------------------------------------ TOTAL INVESTMENTS IN SECURITIES -- 106.98% (Cost $183,113,343) 165,449,936 - ------------------------------------------------------------------ Other Assets, Less Liabilities -- (6.98%) (10,793,492) - ------------------------------------------------------------------ NET ASSETS -- 100.00% $154,656,444 ================================================================== * Denotes all or part of security on loan. See Note 5. + Non-income earning securities. ++ Represents investment of collateral received from securities lending transactions. See Note 5. SEE NOTES TO FINANCIAL STATEMENTS. - -------------------------------------------------------------------------------- iSHARES SCHEDULES OF INVESTMENTS PAGE 71 iSHARES S&P/TSE 60 INDEX FUND SCHEDULE OF INVESTMENTS MARCH 31, 2001 SECURITY SHARES VALUE - ------------------------------------------------------------- COMMON STOCKS - 99.67% - ------------------------------------------------------------- Nortel Networks Corp. 55,599 $ 783,056 Toronto Dominion Bank 18,300 457,760 BCE Inc. 16,500 370,313 Candian National Railway Company 8,505 320,143 Canadian Pacific Ltd. 8,700 315,968 Bank of Nova Scotia 12,000 307,010 Canadian Imperial Bank of Commerce 8,700 274,372 Bombardier Inc. "B" 19,800 273,345 Manulife Financial Corp. 10,180 267,861 Magna International Inc. "A" 4,500 206,833 Precision Drilling Corp.+ 5,616 201,295 Thomson Corp. 6,000 199,670 Edperbrascan Corp. "A" 11,700 190,790 Royal Bank of Canada 6,300 188,230 Inco Ltd.+ 12,192 180,282 Bank of Montreal 6,252 156,548 Placer Dome Inc. 17,025 146,088 Celestica Inc.+ 5,100 139,296 Sun Life Financial Services of Canada 6,900 133,272 Shaw Communications Inc. "B" 6,000 115,319 Transcanada Pipelines Ltd. 8,262 100,666 Quebecor World Inc. 4,500 99,171 Anderson Exploration Ltd.+ 4,250 96,083 Dofasco Inc. 6,300 93,956 Potash Corp. of Saskatchewan Inc. 1,500 87,230 Suncor Energy Inc. 3,300 84,721 Gulf Canada Resources Ltd.+ 15,300 83,714 Rogers Communications "B" 5,100 75,575 Alcan Aluminum Ltd. 2,100 75,204 Domtar Inc. 7,416 67,627 Canadian Natural Resources Ltd. 2,300 66,490 Noranda Corp. 6,000 60,224 Hudson Bay Company 5,100 54,582 Enbridge Inc. 2,034 54,550 United Dominion Industries Ltd. 2,577 54,066 Nova Chemicals Corp. 2,400 47,769 Mitel Corp.+ 6,000 47,572 Biovail Corporation+ 800 29,384 Alberta Energy Co. Ltd. 650 28,773 National Bank of Canada 1,200 21,141 Abitibi-Consolidated Inc. 2,400 18,710 Canadian Tire Corp. Ltd. "A" 1,200 17,098 ATI Technologies Inc.+ 3,900 16,795 SHARES OR SECURITY PRINCIPAL VALUE - --------------------------------------------------------------- Petro-Canada 690 15,486 Barrick Gold Corp. 420 5,921 - --------------------------------------------------------------- TOTAL COMMON STOCKS (Cost: $8,800,358) 6,629,959 - --------------------------------------------------------------- REPURCHASE AGREEMENT - 0.13% - --------------------------------------------------------------- Investors Bank & Trust Tri-Party Repurchase Agreement, dated 03/30/01, due 04/02/01, with a maturity value of $8,792 and an effective yield of 4.90%. $ 8,788 8,788 - ------------------------------------------------------------- TOTAL REPURCHASE AGREEMENT (Cost: $8,788) 8,788 - ------------------------------------------------------------- TOTAL INVESTMENTS IN SECURITIES -- 99.80% (Cost $8,809,146) 6,638,747 - ------------------------------------------------------------- Other Assets, Less Liabilities -- 0.20% 13,004 - ------------------------------------------------------------- NET ASSETS -- 100.00% $6,651,751 ============================================================= +Non-income earning securities. SEE NOTES TO FINANCIAL STATEMENTS. - -------------------------------------------------------------------------------- PAGE 72 iSHARES iSHARES NASDAQ BIOTECHNOLOGY INDEX FUND SCHEDULE OF INVESTMENTS MARCH 31, 2001 SECURITY SHARES VALUE - --------------------------------------------------------------- COMMON STOCKS - 100.01% - --------------------------------------------------------------- Amgen Inc.+ 322,481 $19,409,325 Biogen Inc.+ 56,014 3,546,386 Chiron Corp.+ 74,134 3,252,629 Genzyme Corp. - General Division+ 35,048 3,165,886 MedImmune Inc.+ 83,677 3,001,912 Immunex Corp.+ 190,195 2,722,166 Millennium Pharmaceuticals Inc.+ 83,238 2,535,429 Human Genome Sciences Inc.+ 50,224 2,310,304 IDEC Pharmaceuticals Corp.+ 56,636 2,265,440 Aviron+ 40,478 1,682,367 Gilead Sciences Inc.+ 51,682 1,679,665 ATSI Communications Inc.+ 68,436 1,621,078 BioChem Pharma Inc.+ 53,334 1,620,020 ICOS Corp.+ 32,920 1,563,700 Celgene Corp.+ 62,134 1,553,350 Imclone Systems Inc.+ 45,652 1,515,076 Incyte Genomics Inc.+ 96,878 1,487,077 Praecis Pharmaceuticals Inc.+ 73,432 1,464,051 Vertex Pharmaceuticals Inc.+ 39,286 1,438,850 Protein Design Labs Inc.+ 32,240 1,434,680 CuraGen Corp.+ 60,706 1,422,797 Alkermes Inc.+ 64,626 1,417,733 Inhale Therapeutic Systems Inc.+ 66,263 1,416,372 Cephalon Inc.+ 29,087 1,397,994 OSI Pharmaceuticals Inc.+ 35,044 1,388,619 Scios Inc.+ 58,989 1,356,747 Enzon Inc.+ 28,250 1,341,875 Medarex Inc.+ 78,579 1,311,287 Myriad Genetics Inc.+ 31,630 1,282,992 QLT Inc.+ 62,821 1,272,125 Tularik Inc.+ 64,135 1,218,565 COR Therapeutics Inc.+ 53,764 1,209,690 Cell Therapeutics Inc.+ 66,926 1,200,485 NPS Pharmaceuticals Inc.+ 57,028 1,197,588 Regeneron Pharmaceuticals Inc.+ 53,110 1,178,378 Cubist Pharmaceuticals Inc.+ 45,974 1,126,363 CV Therapeutics Inc.+ 32,757 1,080,981 Tanox Inc.+ 55,518 1,079,131 Intermune Pharmaceuticals Inc.+ 48,252 1,013,292 Ligand Pharmaceuticals Inc. "B"+ 101,094 988,826 Immunogen Inc.+ 73,312 980,548 Affymetrix Inc.+ 34,532 960,421 Neurocrine Biosciences Inc.+ 46,478 958,609 Luminex Corp.+ 48,268 889,941 Alexion Pharmaceuticals Inc.+ 37,895 864,480 Trimeris Inc.+ 28,376 851,280 Corixa Corp.+ 92,722 741,776 Cell Genesys Inc.+ 51,748 737,409 Exelixis Inc.+ 69,648 605,067 Gene Logic Inc.+ 36,070 604,172 Guilford Pharmaceuticals Inc.+ 32,540 601,990 Aurora Biosciences Corp.+ 29,656 530,101 Lexicon Genetics Inc.+ 69,736 457,643 Antigenics Inc.+ 30,056 450,840 Transkaryotic Therapies Inc.+ 24,455 429,491 Viropharma Inc.+ 14,583 421,084 Isis Pharmaceuticals Inc.+ 45,466 420,560 Supergen Inc.+ 35,446 365,537 Kos Pharmaceuticals Inc.+ 19,518 342,785 United Therapeutics Inc.+ 18,466 322,001 EntreMed Inc.+ 19,236 319,798 NeoPharm Inc.+ 13,752 293,089 Emisphere Technologies Inc.+ 19,544 279,724 Sangamo BioSciences Inc.+ 24,332 261,569 Arqule Inc.+ 19,058 252,518 Matrix Pharmaceutical Inc.+ 25,528 229,752 Geron Corp.+ 21,376 223,112 Corvas International Inc.+ 23,992 215,928 Avigen Inc.+ 17,440 212,550 Vical Inc.+ 18,573 177,604 DUSA Pharmaceuticals Inc.+ 10,598 141,086 Onyx Pharmaceuticals Inc.+ 13,797 134,521 Dendreon Corp+ 18,246 126,582 Progenics Pharmaceuticals Inc.+ 10,212 116,800 Generex Biotechnology Corp.+ 14,046 93,055 Ribozyme Pharmaceuticals Inc.+ 10,868 67,273 - ---------------------------------------------------------------- TOTAL COMMON STOCKS (Cost: $127,576,600) 99,851,927 - ---------------------------------------------------------------- REPURCHASE AGREEMENT - 0.06% - ---------------------------------------------------------------- Investors Bank & Trust Tri-Party Repurchase Agreement, dated 03/30/01, due 04/02/01, with a maturity value of $64,320 and an effective yield of 4.90%. $ 64,294 64,294 - ---------------------------------------------------------------- TOTAL REPURCHASE AGREEMENT (Cost: $64,294) 64,294 - ---------------------------------------------------------------- TOTAL INVESTMENTS IN SECURITIES -- 100.07% (Cost $127,640,894) 99,916,221 - ---------------------------------------------------------------- Other Assets, Less Liabilities -- (0.07%) (69,059) - ---------------------------------------------------------------- NET ASSETS -- 100.00% $99,847,162 ================================================================ + Non-income earning securities. SEE NOTES TO FINANCIAL STATEMENTS. - -------------------------------------------------------------------------------- iSHARES SCHEDULES OF INVESTMENTS PAGE 73 iSHARES TRUST STATEMENTS OF ASSETS AND LIABILITIES MARCH 31, 2001
iSHARES S&P -------------------------------------------------------- 500/BARRA 500/BARRA 100 500 GROWTH VALUE INDEX FUND INDEX FUND INDEX FUND INDEX FUND - -------------------------------------------------------------------------------------------------- ASSETS Investments at cost $110,056,565 $3,473,134,642 $186,351,955 $421,561,271 -------------------------------------------------------- Investments in securities, at market value (Note 1)+ $ 88,888,699 $2,946,239,697 $152,463,132 $394,838,071 Receivables: Investment securities sold 24,244 5,330,836 473,098 176,512 Dividends and interest 92,462 2,439,171 114,568 458,225 -------------------------------------------------------- Total Assets 89,005,405 2,954,009,704 153,050,798 395,472,808 -------------------------------------------------------- LIABILITIES Payables: Investment securities purchased - 4,967,347 423,423 204,348 Collateral for securities on loan (Note 5) 207,129 71,643,776 11,066,458 27,393,319 iShares redeemed - 198,225 - 65,460 Due to bank 1,838 - - - Advisory fees (Note 2) 34,710 361,560 40,812 105,852 -------------------------------------------------------- Total Liabilities 243,677 77,170,908 11,530,693 27,768,979 -------------------------------------------------------- NET ASSETS $ 88,761,728 $2,876,838,796 $141,520,105 $367,703,829 ======================================================== NET ASSETS CONSIST OF: Paid-in capital $110,662,948 $3,418,283,618 $184,633,405 $395,636,395 Undistributed net investment income 22,497 1,235,065 18,145 248,953 Undistributed net realized loss (755,851) (15,784,942) (9,242,622) (1,458,319) Net unrealized depreciation (21,167,866) (526,894,945) (33,888,823) (26,723,200) -------------------------------------------------------- NET ASSETS $ 88,761,728 $2,876,838,796 $141,520,105 $367,703,829 ======================================================== iShares outstanding 1,500,000 24,750,000 2,500,000 6,200,000 ======================================================== Net asset value per iShare $ 59.17 $ 116.24 $ 56.61 $ 59.31 ========================================================
- -------------------------------------------------------------------------------- + Includes securities on loan with market values of $201,620, $69,183,533, $10,746,838 and $26,533,747, respectively. See Note 5. SEE NOTES TO FINANCIAL STATEMENTS. - -------------------------------------------------------------------------------- PAGE 74 iSHARES iSHARES TRUST STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED) MARCH 31, 2001
iSHARES S&P ------------------------------------------------------------------ MIDCAP MIDCAP SMALLCAP MIDCAP 400/BARRA 400/BARRA SMALLCAP 600/BARRA 400 GROWTH VALUE 600 GROWTH INDEX FUND INDEX FUND INDEX FUND INDEX FUND INDEX FUND - ------------------------------------------------------------------------------------------------------------ ASSETS Investments at cost $201,414,764 $203,850,871 $85,164,771 $230,884,133 $33,014,506 ------------------------------------------------------------------ Investments in securities, at market value (Note 1)+ $173,097,330 $178,655,051 $84,478,472 $219,587,439 $28,704,804 Receivables: Investment securities sold - 6,540,891 759,220 857,040 364,761 Dividends and interest 149,574 46,303 103,583 144,464 6,744 iShares sold - - - 55,261 - ------------------------------------------------------------------ Total Assets 173,246,904 185,242,245 85,341,275 220,644,204 29,076,309 ------------------------------------------------------------------ LIABILITIES Payables: Investment securities purchased 22,161 7,110,860 843,523 1,097,660 452,208 Collateral for securities on loan (Note 5) 16,395,025 15,993,047 6,424,040 11,403,706 1,449,621 iShares redeemed 767,291 - - - - Advisory fees (Note 2) 57,559 45,877 30,176 61,373 12,266 ------------------------------------------------------------------ Total Liabilities 17,242,036 23,149,784 7,297,739 12,562,739 1,914,095 ------------------------------------------------------------------ NET ASSETS $156,004,868 $162,092,461 $78,043,536 $208,081,465 $27,162,214 ================================================================== NET ASSETS CONSIST OF: Paid-in capital $187,565,311 $194,155,534 $79,215,973 $221,731,108 $34,697,724 Undistributed net investment income 43,810 5,811 32,131 79,441 - Undistributed net realized loss (3,286,819) (6,873,064) (518,269) (2,432,390) (3,225,808) Net unrealized depreciation (28,317,434) (25,195,820) (686,299) (11,296,694) (4,309,702) ------------------------------------------------------------------ NET ASSETS $156,004,868 $162,092,461 $78,043,536 $208,081,465 $27,162,214 ================================================================== iShares outstanding 1,700,000 1,600,000 950,000 2,050,000 400,000 ================================================================== Net asset value per iShare $ 91.77 $ 101.31 $ 82.15 $ 101.50 $ 67.91 ==================================================================
- -------------------------------------------------------------------------------- + Includes securities on loan with market values of $15,843,126, $15,519,010, $6,180,234, $10,920,434 and $1,403,011, respectively. See Note 5. SEE NOTES TO FINANCIAL STATEMENTS. - -------------------------------------------------------------------------------- iSHARES FINANCIAL STATEMENTS PAGE 75 iSHARES TRUST STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED) MARCH 31, 2001
iSHARES S&P iSHARES NASDAQ ---------------------------------------------------- -------------- SMALLCAP 600/BARRA BIO- VALUE GLOBAL 100 EUROPE 350 /TSE 60 TECHNOLOGY INDEX FUND INDEX FUND INDEX FUND INDEX FUND INDEX FUND - -------------------------------------------------------------------------------------------------------------- ASSETS Investments at cost $67,253,635 $122,847,918 $183,113,343 $8,809,146 $127,640,894 -------------------------------------------------------------------- Foreign currency, at cost $ - $ 70,599 $ 63,683 $ 5,107 $ - -------------------------------------------------------------------- Investments in securities, at market value (Note 1)+ $65,815,457 $104,241,994 $165,449,936 $6,638,747 $ 99,916,221 Foreign currency, at value - 69,261 62,731 5,010 - Cash - - - 842 - Receivables: Investment securities sold 13,235 - - - - Dividends and interest 64,624 210,919 513,977 13,079 9 iShares sold 41,002 - - - - -------------------------------------------------------------------- Total Assets 65,934,318 104,522,174 166,026,644 6,657,678 99,916,230 -------------------------------------------------------------------- LIABILITIES Payables: Collateral for securities on loan (Note 5) 1,421,805 1,044,600 11,245,268 - - Advisory fees (Note 2) 22,844 70,779 124,932 5,927 69,068 -------------------------------------------------------------------- Total Liabilities 1,444,649 1,115,379 11,370,200 5,927 69,068 -------------------------------------------------------------------- NET ASSETS $64,489,669 $103,406,795 $154,656,444 $6,651,751 $ 99,847,162 ==================================================================== NET ASSETS CONSIST OF: Paid-in capital $66,187,423 $122,234,830 $175,722,618 $8,847,179 $130,086,009 Undistributed net investment income (loss) 40,531 96,157 192,538 7,344 (68,930) Undistributed net realized loss (300,107) (314,928) (3,586,127) (32,083) (2,445,244) Net unrealized depreciation (1,438,178) (18,609,264) (17,672,585) (2,170,689) (27,724,673) -------------------------------------------------------------------- NET ASSETS $64,489,669 $103,406,795 $154,656,444 $6,651,751 $ 99,847,162 ==================================================================== iShares outstanding 850,000 1,700,000 2,450,000 150,000 1,300,000 ==================================================================== Net asset value per iShare $ 75.87 $ 60.83 $ 63.13 $ 44.35 $ 76.81 ====================================================================
- -------------------------------------------------------------------------------- + Includes securities on loan with market values of $1,341,838, $989,899, $10,648,006, $ - and $ -, respectively. See Note 5. SEE NOTES TO FINANCIAL STATEMENTS. - -------------------------------------------------------------------------------- PAGE 76 iSHARES iSHARES TRUST STATEMENTS OF OPERATIONS FOR THE PERIOD ENDED MARCH 31, 2001
iSHARES S&P ------------------------------------------------------------------------------ 500/BARRA 500/BARRA 100 500 GROWTH VALUE INDEX FUND (3) INDEX FUND (1) INDEX FUND (2) INDEX FUND (2) - ------------------------------------------------------------------------------------------------------------------------ NET INVESTMENT INCOME Dividends+ $ 799,983 $ 16,937,374 $ 562,403 $ 2,319,175 Interest 1,926 58,567 4,554 9,101 Securities lending income 15 28,725 1,189 5,207 ------------------------------------------------------------------------------ Total investment income 801,924 17,024,666 568,146 2,333,483 ------------------------------------------------------------------------------ EXPENSES (NOTE 2) Advisory fees 129,813 1,383,992 161,066 246,793 ------------------------------------------------------------------------------ Total expenses 129,813 1,383,992 161,066 246,793 ------------------------------------------------------------------------------ Net investment income 672,111 15,640,674 407,080 2,086,690 ------------------------------------------------------------------------------ NET REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) from investments (7,703,309) 29,660,250 (9,062,793) 9,252,905 Net change in unrealized depreciation on investments (21,167,866) (526,894,945) (33,888,823) (26,723,200) ------------------------------------------------------------------------------ Net realized and unrealized loss (28,871,175) (497,234,695) (42,951,616) (17,470,295) ------------------------------------------------------------------------------ NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $(28,199,064) $(481,594,021) $(42,544,536) $(15,383,605) ============================================================================== - ------------------------------------------------------------------------------------------------------------------------ +Net of foreign withholding tax of: $ 411 $ 35,541 $ 373 $ 4,301 - ------------------------------------------------------------------------------------------------------------------------
(1) For the period from May 15, 2000 (commencement of operations) to March 31, 2001. (2) For the period from May 22, 2000 (commencement of operations) to March 31, 2001. (3) For the period from October 23, 2000 (commencement of operations) to March 31, 2001. SEE NOTES TO FINANCIAL STATEMENTS. - -------------------------------------------------------------------------------- iSHARES FINANCIAL STATEMENTS PAGE 77 iSHARES TRUST STATEMENTS OF OPERATIONS (CONTINUED) FOR THE PERIOD ENDED MARCH 31, 2001
ISHARES S&P -------------------------------------------------------------------------------------------------- MIDCAP MIDCAP SMALLCAP MIDCAP 400/BARRA 400/BARRA SMALLCAP 600/BARRA 400 GROWTH VALUE 600 GROWTH INDEX FUND (1) INDEX FUND (2) INDEX FUND (2) INDEX FUND (1) INDEX FUND (2) - --------------------------------------------------------------------------------------------------------------------------------- NET INVESTMENT INCOME Dividends $ 1,845,682 $ 129,126 $ 529,889 $ 643,810 $ 35,034 Interest 7,977 3,509 2,192 5,068 865 Securities lending income 14,258 3,838 1,155 25,260 2,844 -------------------------------------------------------------------------------------------------- Total investment income 1,867,917 136,473 533,236 674,138 38,743 -------------------------------------------------------------------------------------------------- EXPENSES (NOTE 2) Advisory fees 350,529 111,350 72,013 166,136 38,901 -------------------------------------------------------------------------------------------------- Total expenses 350,529 111,350 72,013 166,136 38,901 -------------------------------------------------------------------------------------------------- Net investment income (loss) 1,517,388 25,123 461,223 508,002 (158) -------------------------------------------------------------------------------------------------- NET REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) from investments 26,831,230 (4,917,468) 3,306,517 5,066,964 (870,412) Net change in unrealized depreciation on investments (28,317,434) (25,195,820) (686,299) (11,296,694) (4,309,702) -------------------------------------------------------------------------------------------------- Net realized and unrealized gain (loss) (1,486,204) (30,113,288) 2,620,218 (6,229,730) (5,180,114) -------------------------------------------------------------------------------------------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 31,184 $(30,088,165) $3,081,441 $ (5,721,728) $(5,180,272) ================================================================================================== - ---------------------------------------------------------------------------------------------------------------------------------
(1) For the period from May 22, 2000 (commencement of operations) to March 31, 2001. (2) For the period from July 24, 2000 (commencement of operations) to March 31, 2001. SEE NOTES TO FINANCIAL STATEMENTS. - -------------------------------------------------------------------------------- PAGE 78 iSHARES iSHARES TRUST STATEMENTS OF OPERATIONS (CONTINUED) FOR THE PERIOD ENDED MARCH 31, 2001
iSHARES S&P iSHARES NASDAQ ------------------------------------------------------------------------------ -------------- SMALLCAP 600/BARRA BIO- VALUE GLOBAL 100 EUROPE 350 /TSE 60 TECHNOLOGY INDEX FUND (2) INDEX FUND (4) INDEX FUND (3) INDEX FUND (1) INDEX FUND (5) - --------------------------------------------------------------------------------------------------------------------------------- NET INVESTMENT INCOME Dividends+ $ 243,087 $ 440,796 $ 764,476 $ 85,334 $ - Interest 948 3,491 4,598 1,010 138 Securities lending income 1,699 2,197 16,031 - - ---------------------------------------------------------------------------------------------- Total investment income 245,734 446,484 785,105 86,344 138 ---------------------------------------------------------------------------------------------- EXPENSES (NOTE 2) Advisory fees 49,623 138,080 272,425 34,330 69,068 ---------------------------------------------------------------------------------------------- Total expenses 49,623 138,080 272,425 34,330 69,068 ---------------------------------------------------------------------------------------------- Net investment income (loss) 196,111 308,404 512,680 52,014 (68,930) ---------------------------------------------------------------------------------------------- NET REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) from: Investments 2,212,842 (314,928) (3,586,126) 39,223 (2,445,244) Foreign currency transactions - (9,246) (80,783) (3,019) - ---------------------------------------------------------------------------------------------- Net realized gain (loss) 2,212,842 (324,174) (3,666,909) 36,204 (2,445,244) ---------------------------------------------------------------------------------------------- Net change in unrealized depreciation on: Investments (1,438,178) (18,605,924) (17,663,407) (2,170,399) (27,724,673) Translation of assets and liabilities in foreign currencies - (3,340) (9,178) (290) - ---------------------------------------------------------------------------------------------- Net change in unrealized depreciation (1,438,178) (18,609,264) (17,672,585) (2,170,689) (27,724,673) ---------------------------------------------------------------------------------------------- Net realized and unrealized gain (loss) 774,664 (18,933,438) (21,339,494) (2,134,485) (30,169,917) ---------------------------------------------------------------------------------------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 970,775 $(18,625,034) $(20,826,814) $(2,082,471) $(30,238,847) ============================================================================================== - --------------------------------------------------------------------------------------------------------------------------------- +Net of foreign withholding tax of: $ - $ 26,320 $ 96,879 $ 14,676 $ - - ---------------------------------------------------------------------------------------------------------------------------------
(1) For the period from June 12, 2000 (commencement of operations) to March 31, 2001. (2) For the period from July 24, 2000 (commencement of operations) to March 31, 2001. (3) For the period from July 25, 2000 (commencement of operations) to March 31, 2001. (4) For the period from December 5, 2000 (commencement of operations) to March 31, 2001. (5) For the period from February 5, 2001 (commencement of operations) to March 31, 2001. SEE NOTES TO FINANCIAL STATEMENTS. - -------------------------------------------------------------------------------- iSHARES FINANCIAL STATEMENTS PAGE 79 iSHARES TRUST STATEMENTS OF CHANGES IN NET ASSETS FOR THE PERIOD ENDED MARCH 31, 2001
iSHARES S&P ------------------------------------------------------------------------------ 500/BARRA 500/BARRA 100 500 GROWTH VALUE INDEX FUND (3) INDEX FUND (1) INDEX FUND (2) INDEX FUND (2) - ------------------------------------------------------------------------------------------------------------------------ INCREASE (DECREASE) IN NET ASSETS OPERATIONS: Net investment income $ 672,111 $ 15,640,674 $ 407,080 $ 2,086,690 Net realized gain (loss) (7,703,309) 29,660,250 (9,062,793) 9,252,905 Net change in unrealized depreciation (21,167,866) (526,894,945) (33,888,823) (26,723,200) ------------------------------------------------------------------------------ Net decrease in net assets resulting from operations (28,199,064) (481,594,021) (42,544,536) (15,383,605) ------------------------------------------------------------------------------ DISTRIBUTIONS TO iSHAREHOLDERS: From net investment income (649,614) (14,405,609) (388,935) (1,837,737) From net realized gain - (978,894) (179,829) (485,753) ------------------------------------------------------------------------------ Total distributions to iShareholders (649,614) (15,384,503) (568,764) (2,323,490) ------------------------------------------------------------------------------ iSHARES TRANSACTIONS: iShares sold 255,638,224 3,970,896,590 184,633,405 450,615,485 iShares redeemed (138,027,818) (597,079,270) - (65,204,561) ------------------------------------------------------------------------------ Net increase in net assets from iShares transactions 117,610,406 3,373,817,320 184,633,405 385,410,924 ------------------------------------------------------------------------------ Increase in net assets 88,761,728 2,876,838,796 141,520,105 367,703,829 NET ASSETS: Beginning of period - - - - ------------------------------------------------------------------------------ End of period $ 88,761,728 $2,876,838,796 $141,520,105 $367,703,829 ============================================================================== Undistributed net investment income included in net assets at end of period $ 22,497 $ 1,235,065 $ 18,145 $ 248,953 ============================================================================== iSHARES ISSUED AND REDEEMED: iShares sold 3,510,000 29,500,000 2,500,000 7,300,000 iShares redeemed (2,010,000) (4,750,000) - (1,100,000) ------------------------------------------------------------------------------ Net increase in iShares outstanding 1,500,000 24,750,000 2,500,000 6,200,000 ============================================================================== - ------------------------------------------------------------------------------------------------------------------------
(1) For the period from May 15, 2000 (commencement of operations) to March 31, 2001. (2) For the period from May 22, 2000 (commencement of operations) to March 31, 2001. (3) For the period from October 23, 2000 (commencement of operations) to March 31, 2001. SEE NOTES TO FINANCIAL STATEMENTS. - -------------------------------------------------------------------------------- PAGE 80 iSHARES iSHARES TRUST STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED) FOR THE PERIOD ENDED MARCH 31, 2001
iSHARES S&P -------------------------------------------------------------------------------------------------- MIDCAP MIDCAP SMALLCAP MIDCAP 400/BARRA 400/BARRA SMALLCAP 600/BARRA 400 GROWTH VALUE 600 GROWTH INDEX FUND (1) INDEX FUND (2) INDEX FUND (2) INDEX FUND (1) INDEX FUND (2) - --------------------------------------------------------------------------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS OPERATIONS: Net investment income (loss) $ 1,517,388 $ 25,123 $ 461,223 $ 508,002 $ (158) Net realized gain (loss) 26,831,230 (4,917,468) 3,306,517 5,066,964 (870,412) Net change in unrealized depreciation (28,317,434) (25,195,820) (686,299) (11,296,694) (4,309,702) -------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 31,184 (30,088,165) 3,081,441 (5,721,728) (5,180,272) -------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO ISHAREHOLDERS: From net investment income (1,473,578) (19,312) (429,092) (428,561) (1,515) From net realized gain (701,610) (351,372) (79,322) (1,403,931) (154,251) -------------------------------------------------------------------------------------------------- Total distributions to iShareholders (2,175,188) (370,684) (508,414) (1,832,492) (155,766) -------------------------------------------------------------------------------------------------- iSHARES TRANSACTIONS: iShares sold 359,352,127 265,907,708 88,151,375 236,569,338 47,626,303 iShares redeemed (201,203,255) (73,356,398) (12,680,866) (20,933,653) (15,128,051) -------------------------------------------------------------------------------------------------- Net increase in net assets from iShares transactions 158,148,872 192,551,310 75,470,509 215,635,685 32,498,252 -------------------------------------------------------------------------------------------------- Increase in net assets 156,004,868 162,092,461 78,043,536 208,081,465 27,162,214 NET ASSETS: Beginning of period - - - - - -------------------------------------------------------------------------------------------------- End of period $ 156,004,868 $162,092,461 $ 78,043,536 $208,081,465 $ 27,162,214 ================================================================================================== Undistributed net investment income included in net assets at end of period $ 43,810 $ 5,811 $ 32,131 $ 79,441 $ - ================================================================================================== iSHARES ISSUED AND REDEEMED: iShares sold 3,650,000 2,200,000 1,100,000 2,250,000 600,000 iShares redeemed (1,950,000) (600,000) (150,000) (200,000) (200,000) -------------------------------------------------------------------------------------------------- Net increase in iShares outstanding 1,700,000 1,600,000 950,000 2,050,000 400,000 ================================================================================================== - ---------------------------------------------------------------------------------------------------------------------------------
(1) For the period from May 22, 2000 (commencement of operations) to March 31, 2001. (2) For the period from July 24, 2000 (commencement of operations) to March 31, 2001. SEE NOTES TO FINANCIAL STATEMENTS. - -------------------------------------------------------------------------------- iSHARES FINANCIAL STATEMENTS PAGE 81 iSHARES TRUST STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED) FOR THE PERIOD ENDED MARCH 31, 2001
iSHARES S&P iSHARES NASDAQ ------------------------------------------------------------------------------ -------------- SMALLCAP 600/BARRA BIO- VALUE GLOBAL 100 EUROPE 350 /TSE 60 TECHNOLOGY INDEX FUND (2) INDEX FUND (4) INDEX FUND (3) INDEX FUND (1) INDEX FUND (5) - --------------------------------------------------------------------------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS OPERATIONS: Net investment income (loss) $ 196,111 $ 308,404 $ 512,680 $ 52,014 $ (68,930) Net realized gain (loss) 2,212,842 (324,174) (3,666,909) 36,204 (2,445,244) Net change in unrealized depreciation (1,438,178) (18,609,264) (17,672,585) (2,170,689) (27,724,673) ---------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 970,775 (18,625,034) (20,826,814) (2,082,471) (30,238,847) ---------------------------------------------------------------------------------------------- DISTRIBUTIONS TO iSHAREHOLDERS: From net investment income (155,580) (203,001) (239,360) (41,650) - From net realized gain (85,751) - - (71,307) - ---------------------------------------------------------------------------------------------- Total distributions to iShareholders (241,331) (203,001) (239,360) (112,957) - ---------------------------------------------------------------------------------------------- iSHARES TRANSACTIONS: iShares sold 71,163,205 122,234,830 175,722,618 8,847,179 130,086,009 iShares redeemed (7,402,980) - - - - ---------------------------------------------------------------------------------------------- Net increase in net assets from iShares transactions 63,760,225 122,234,830 175,722,618 8,847,179 130,086,009 ---------------------------------------------------------------------------------------------- Increase in net assets 64,489,669 103,406,795 154,656,444 6,651,751 99,847,162 NET ASSETS: Beginning of period - - - - - ---------------------------------------------------------------------------------------------- End of period $64,489,669 $103,406,795 $154,656,444 $ 6,651,751 $ 99,847,162 ============================================================================================== Undistributed net investment income (loss) included in net assets at end of period $ 40,531 $ 96,157 $ 192,538 $ 7,344 $ (68,930) ============================================================================================== iSHARES ISSUED AND REDEEMED: iShares sold 950,000 1,700,000 2,450,000 150,000 1,300,000 iShares redeemed (100,000) - - - - ---------------------------------------------------------------------------------------------- Net increase in iShares outstanding 850,000 1,700,000 2,450,000 150,000 1,300,000 ============================================================================================== - ---------------------------------------------------------------------------------------------------------------------------------
(1) For the period from June 12, 2000 (commencement of operations) to March 31, 2001. (2) For the period from July 24, 2000 (commencement of operations) to March 31, 2001. (3) For the period from July 25, 2000 (commencement of operations) to March 31, 2001. (4) For the period from December 5, 2000 (commencement of operations) to March 31, 2001. (5) For the period from February 5, 2001 (commencement of operations) to March 31, 2001. SEE NOTES TO FINANCIAL STATEMENTS. - -------------------------------------------------------------------------------- PAGE 82 iSHARES iSHARES TRUST FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD) FOR THE PERIOD ENDED MARCH 31, 2001
iSHARES S&P ------------------------------------------------------------------------------------ 500/BARRA 500/BARRA 100 500 GROWTH VALUE INDEX FUND (3) INDEX FUND (1) INDEX FUND (2) INDEX FUND (2) - -------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 73.44 $ 145.24 $ 82.15 $ 60.20 ------------------------------------------------------------------------------------ INCOME FROM INVESTMENT OPERATIONS: Net investment income 0.31 1.06 0.25 0.65 Net realized and unrealized loss (14.28) (28.98) (25.44) (0.78) ------------------------------------------------------------------------------------ Total from investment operations (13.97) (27.92) (25.19) (0.13) ------------------------------------------------------------------------------------ LESS DISTRIBUTIONS FROM: Net investment income (0.30) (1.01) (0.24) (0.61) Net realized gain - (0.07) (0.11) (0.15) ------------------------------------------------------------------------------------ Total distributions (0.30) (1.08) (0.35) (0.76) ------------------------------------------------------------------------------------ NET ASSET VALUE, END OF PERIOD $ 59.17 $ 116.24 $ 56.61 $ 59.31 ==================================================================================== TOTAL RETURN (NOT ANNUALIZED) (19.07)% (19.32)% (30.75)% (0.27)% ==================================================================================== RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (000s) $88,762 $2,876,839 $141,520 $367,704 Ratio of expenses to average net assets+ 0.20% 0.09% 0.18% 0.18% Ratio of net investment income to average net assets+ 1.03% 1.06% 0.45% 1.51% Portfolio turnover rate++ 5% 5% 31% 9% - --------------------------------------------------------------------------------------------------------------------------------
(1) For the period from May 15, 2000 (commencement of operations) to March 31, 2001. (2) For the period from May 22, 2000 (commencement of operations) to March 31, 2001. (3) For the period from October 23, 2000 (commencement of operations) to March 31, 2001. + Annualized for periods of less than one year. ++ Excludes portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. SEE NOTES TO FINANCIAL STATEMENTS. - -------------------------------------------------------------------------------- iSHARES FINANCIAL HIGHLIGHTS PAGE 83 iSHARES TRUST FINANCIAL HIGHLIGHTS (CONTINUED) (FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD) FOR THE PERIOD ENDED MARCH 31, 2001
iSHARES S&P -------------------------------------------------------------------------------------- MIDCAP MIDCAP SMALLCAP MIDCAP 400/BARRA 400/BARRA SMALLCAP 600/BARRA 400 GROWTH VALUE 600 GROWTH INDEX FUND (1) INDEX FUND (2) INDEX FUND (2) INDEX FUND (1) INDEX FUND (2) - ----------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 92.63 $ 135.73 $ 72.40 $ 97.95 $ 83.34 -------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income 0.72 0.01 0.78 0.38 0.00* Net realized and unrealized gain (loss) (0.59) (33.95) 9.86 4.63 (14.81) -------------------------------------------------------------------------------------- Total from investment operations 0.13 (33.94) 10.64 5.01 (14.81) -------------------------------------------------------------------------------------- LESS DISTRIBUTIONS FROM: Net investment income (0.69) (0.01) (0.75) (0.34) (0.00)* Net realized gain (0.30) (0.47) (0.14) (1.12) (0.62) -------------------------------------------------------------------------------------- Total distributions (0.99) (0.48) (0.89) (1.46) (0.62) -------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $ 91.77 $ 101.31 $ 82.15 $ 101.50 $ 67.91 ====================================================================================== TOTAL RETURN (NOT ANNUALIZED) 0.04% (25.08)% 14.71% 5.08% (17.86)% ====================================================================================== RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (000s) $156,005 $162,092 $78,044 $208,081 $ 27,162 Ratio of expenses to average net assets+ 0.20% 0.25% 0.25% 0.20% 0.25% Ratio of net investment income to average net assets+ 0.86% 0.06% 1.58% 0.61% 0.00%** Portfolio turnover rate++ 32% 67% 17% 28% 77% - -----------------------------------------------------------------------------------------------------------------------------
(1) For the period from May 22, 2000 (commencement of operations) to March 31, 2001. (2) For the period from July 24, 2000 (commencement of operations) to March 31, 2001. + Annualized for periods of less than one year. ++ Excludes portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. * Rounds to less than $0.01. ** Rounds to less than 0.01%. SEE NOTES TO FINANCIAL STATEMENTS. - -------------------------------------------------------------------------------- PAGE 84 iSHARES iSHARES TRUST FINANCIAL HIGHLIGHTS (CONTINUED) (FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD) FOR THE PERIOD ENDED MARCH 31, 2001
iSHARES S&P iSHARES NASDAQ -------------------------------------------------------------- -------------- SMALLCAP 600/BARRA BIO- VALUE GLOBAL 100 EUROPE 350 /TSE 60 TECHNOLOGY INDEX FUND (2) INDEX FUND (4) INDEX FUND (3) INDEX FUND (1) INDEX FUND (5) - -------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 68.34 $ 72.50 $ 79.32 $ 59.00 $ 99.66 ------------------------------------------------------------------------------ INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss) 0.43 0.18 0.38 0.35 (0.05) Net realized and unrealized gain (loss) 7.82 (11.73) (16.30) (14.24) (22.80) ------------------------------------------------------------------------------ Total from investment operations 8.25 (11.55) (15.92) (13.89) (22.85) ------------------------------------------------------------------------------ LESS DISTRIBUTIONS FROM: Net investment income (0.38) (0.12) (0.27) (0.28) - Net realized gain (0.34) - - (0.48) - ------------------------------------------------------------------------------ Total distributions (0.72) (0.12) (0.27) (0.76) - ------------------------------------------------------------------------------ NET ASSET VALUE, END OF PERIOD $ 75.87 $ 60.83 $ 63.13 $ 44.35 $ 76.81 ============================================================================== TOTAL RETURN (NOT ANNUALIZED) 12.13% (15.94)% (20.10)% (23.80)% (22.93)% ============================================================================== RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (000s) $ 64,490 $103,407 $154,656 $ 6,652 $ 99,847 Ratio of expenses to average net assets+ 0.25% 0.40% 0.60% 0.50% 0.50% Ratio of net investment income (loss) to average net assets+ 0.98% 0.88% 1.12% 0.76% (0.50)% Portfolio turnover rate++ 17% 5% 24% 50% 9% - -------------------------------------------------------------------------------------------------------------
(1) For the period from June 12, 2000 (commencement of operations) to March 31, 2001. (2) For the period from July 24, 2000 (commencement of operations) to March 31, 2001. (3) For the period from July 25, 2000 (commencement of operations) to March 31, 2001. (4) For the period from December 5, 2000 (commencement of operations) to March 31, 2001. (5) For the period from February 5, 2001 (commencement of operations) to March 31, 2001. + Annualized for periods of less than one year. ++ Excludes portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. SEE NOTES TO FINANCIAL STATEMENTS. - -------------------------------------------------------------------------------- iSHARES FINANCIAL HIGHLIGHTS PAGE 85 iSHARES TRUST NOTES TO THE FINANCIAL STATEMENTS 1. SIGNIFICANT ACCOUNTING POLICIES As of March 31, 2001, the iShares Trust (the "Trust") offers 40 investment portfolios or funds. The Trust is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end management investment company. The Trust was established as a Delaware business trust pursuant to an Agreement and Declaration of Trust dated December 16, 1999. The funds offered by the Trust, along with their respective Exchange trading symbols are:
iSHARES S&P SERIES iSHARES DOW JONES SERIES iSHARES RUSSELL SERIES - ------------------ ------------------------ ---------------------- - - iSHARES S&P 100 INDEX FUND - iSHARES DOW JONES U.S. TOTAL - iSHARES RUSSELL 3000 INDEX (OEF) MARKET INDEX FUND (IYY) FUND (IWV) - - iSHARES S&P 500 INDEX FUND - iSHARES DOW JONES U.S. BASIC - iSHARES RUSSELL 3000 GROWTH (IVV) MATERIALS SECTOR INDEX FUND INDEX FUND (IWZ) - - iSHARES S&P 500/BARRA GROWTH (IYM) - iSHARES RUSSELL 3000 VALUE INDEX FUND (IVW) - iSHARES DOW JONES U.S. INDEX FUND (IWW) - - iSHARES S&P 500/BARRA VALUE CONSUMER CYCLICAL SECTOR INDEX - iSHARES RUSSELL 2000 INDEX INDEX FUND (IVE) FUND (IYC) FUND (IWM) - - iSHARES S&P MIDCAP 400 INDEX - iSHARES DOW JONES U.S. - iSHARES RUSSELL 2000 GROWTH FUND (IJH) CONSUMER NON-CYCLICAL SECTOR INDEX FUND (IWO) - - iSHARES S&P MIDCAP 400/BARRA INDEX FUND (IYK) - iSHARES RUSSELL 2000 VALUE GROWTH INDEX FUND (IJK) - iSHARES DOW JONES U.S. ENERGY INDEX FUND (IWN) - - iSHARES S&P MIDCAP 400/BARRA SECTOR INDEX FUND (IYE) - iSHARES RUSSELL 1000 INDEX VALUE INDEX FUND (IJJ) - iSHARES DOW JONES U.S. FUND (IWB) - - iSHARES S&P SMALLCAP 600 INDEX FINANCIAL SECTOR INDEX FUND - iSHARES RUSSELL 1000 GROWTH FUND (IJR) (IYF) INDEX FUND (IWF) - - iSHARES S&P SMALLCAP 600/BARRA - iSHARES DOW JONES U.S. - iSHARES RUSSELL 1000 VALUE GROWTH INDEX FUND (IJT) HEALTHCARE SECTOR INDEX FUND INDEX FUND (IWD) - - iSHARES S&P SMALLCAP 600/BARRA (IYH) VALUE INDEX FUND (IJS) - iSHARES DOW JONES U.S. iSHARES COHEN & STEERS SERIES - - iSHARES S&P GLOBAL 100 INDEX INDUSTRIAL SECTOR INDEX FUND ----------------------------- FUND (IOO) (IYJ) - iSHARES COHEN & STEERS REALTY - - iSHARES S&P EUROPE 350 INDEX - iSHARES DOW JONES U.S. MAJORS INDEX FUND (ICF) FUND (IEV) TECHNOLOGY SECTOR INDEX FUND - - iSHARES S&P/TSE 60 INDEX FUND (IYW) iSHARES NASDAQ SERIES (IKC) - iSHARES DOW JONES U.S. --------------------- TELECOMMUNICATIONS SECTOR INDEX - iSHARES NASDAQ BIOTECHNOLOGY FUND (IYZ) INDEX FUND (IBB) - iSHARES DOW JONES U.S. UTILITIES SECTOR INDEX FUND iSHARES GOLDMAN SACHS SERIES (IDU) ---------------------------- - iSHARES DOW JONES U.S. - iSHARES GOLDMAN SACHS CHEMICALS INDEX FUND (IYD) TECHNOLOGY INDEX FUND (IGM) - iSHARES DOW JONES U.S. FINANCIAL SERVICES INDEX FUND (IYG) - iSHARES DOW JONES U.S. INTERNET INDEX FUND (IYV) - iSHARES DOW JONES U.S. REAL ESTATE INDEX FUND (IYR)
The investment objective of each fund is to seek investment results that correspond generally to the price and yield performance, before fees and expenses, of its underlying index, as indicated in the name of each fund. The investment advisor uses a "passive" or index approach to try to achieve each fund's investment objective. These financial statements relate to the iShares S&P Series and iShares Nasdaq Series of investment portfolios (each a "Fund", collectively the "Funds"). The iShares S&P 100, iShares S&P 500/BARRA Growth, iShares S&P Global 100, iShares S&P/TSE 60 and - -------------------------------------------------------------------------------- PAGE 86 iSHARES iSHARES TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) iShares Nasdaq Biotechnology Index Funds are classified as non-diversified funds under the 1940 Act. Each of the other iShares S&P Index Funds is classified as a diversified fund. Non-diversified funds generally hold fewer stocks than diversified funds and may be more susceptible to the risks associated with these particular companies, or to a single economic, political or regulatory occurrence. The iShares S&P Global 100, Europe 350 and TSE 60 Index Funds invest in the securities of foreign issuers, which may subject them to investment risks not normally associated with investing in the securities of United States corporations. The following significant accounting policies are consistently followed by the Trust in the preparation of its financial statements in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP") for investment companies. The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions. Actual results could differ from those estimates. SECURITY VALUATION Equity securities are valued at the last sales price on the primary securities exchange or national securities market on which such securities are traded. Securities not listed on an exchange or national securities market, or securities for which there was no sale price, are valued at the latest quoted bid prices. U.S. Government obligations are valued at the latest quoted bid price. Debt securities maturing in 60 days or less are valued at amortized cost, which approximates market value. Mutual Funds are valued at net asset value. Any securities, including restricted securities or other assets for which market quotations are not readily available, are valued at fair value as determined in good faith in accordance with policies approved by the Board of Trustees of the Trust. SECURITY TRANSACTIONS AND INCOME RECOGNITION Security transactions are accounted for on trade date. Dividend income is recognized on the ex-dividend date, and interest income is accrued daily. Realized gains and losses on investment transactions are determined using the specific identification method. FOREIGN CURRENCY TRANSLATION The accounting records of the Funds are maintained in U.S. dollars. Investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the prevailing rates of exchange on the valuation date. Purchases and sales of securities, income receipts and expense payments are translated into U.S. dollars at the prevailing exchange rate on the respective dates of such transactions. Each Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of securities. Such fluctuations are reflected by the Funds as a component of realized and unrealized gains and losses from investments for financial reporting purposes. DISTRIBUTIONS TO SHAREHOLDERS Distributions to shareholders from net investment income, if any, are declared and distributed at least annually by each Fund. Distributions of net realized capital gains, if any, generally are declared and distributed once a year. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. FEDERAL INCOME TAXES Each Fund is treated as a separate entity for federal income tax purposes. It is the policy of each Fund to qualify as a regulated investment company by complying with the provisions applicable to regulated investment companies, as defined under Subchapter M of - -------------------------------------------------------------------------------- iSHARES NOTES TO THE FINANCIAL STATEMENTS PAGE 87 iSHARES TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) the Internal Revenue Code of 1986, as amended, and to annually distribute substantially all of its net income and any net gains (taking into account any capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income and excise taxes. Accordingly, no provision for federal income taxes was required for the period ended March 31, 2001. From November 1, 2000 to March 31, 2001, certain of the Funds incurred net realized capital losses or net foreign currency losses. As permitted by tax regulations, these Funds have elected to defer these losses and treat them as arising in the year ending March 31, 2002. ---------------------------------- DEFERRED NET REALIZED iSHARES INDEX FUND CAPITAL LOSSES ---------------------------------- S&P 100 $ 590,611 S&P 500 1,979,090 S&P 500/BARRA Growth 6,965,766 S&P 500/BARRA Value 252,295 S&P MidCap 400 2,094,131 S&P MidCap 400/BARRA Growth 6,000,545 S&P MidCap 400/BARRA Value 100,547 S&P SmallCap 600 790,808 S&P SmallCap 600/BARRA Growth 2,017,526 S&P SmallCap 600/BARRA Value 115,155 S&P Global 100 291,639 S&P Europe 350 299,474 S&P/TSE 60 20,970 ---------------------------------- At March 31, 2001, the iShares S&P Europe 350 Index Fund and the iShares Nasdaq Biotechnology Index Fund had tax basis net capital loss carryforwards of $3,295 and $2,285,057, respectively. Such losses may be applied against any net realized taxable gains in each succeeding year or until their respective expiration date (March 31, 2009), whichever occurs first. - -------------------------------------------------------------------------------- PAGE 88 iSHARES iSHARES TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) For the period ended March 31, 2001, certain Funds realized net capital gains or losses resulting from in-kind redemptions of large blocks of 50,000 iShares ("Creation Units"). Because such gains or losses are not taxable to the Funds, and are not distributed to existing Fund shareholders, the following gains and (losses) have been reclassified from accumulated net realized gains or losses to paid-in-capital: -------------------------------- iSHARES INDEX FUND AMOUNT -------------------------------- S&P 100 $ (6,523,490) S&P 500 46,390,921 S&P 500/BARRA Value 10,445,807 S&P MidCap 400 32,153,632 S&P MidCap 400/BARRA Growth 2,484,124 S&P MidCap 400/BARRA Value 3,767,050 S&P SmallCap 600 6,272,738 S&P SmallCap 600/BARRA Growth 2,354,459 S&P SmallCap 600/BARRA Value 2,459,428 -------------------------------- REPURCHASE AGREEMENTS Each Fund may enter into repurchase agreements with banks and securities dealers. These transactions involve the purchase of securities with a simultaneous commitment to resell the securities to the bank or the dealer at an agreed-upon date and price. A repurchase agreement is accounted for as a loan by the Fund to the seller, collateralized by securities, which are delivered to the Funds' custodian or to an agent bank under a tri-party agreement, that involves a counterparty and IBT (see Note 2). The securities are marked-to-market daily and additional securities are acquired as needed, to ensure that their value equals or exceeds the repurchase price plus accrued interest. The repurchase agreements held by the Funds at March 31, 2001 were fully collateralized by U.S. Government obligations with an interest rate of 6.25%, a maturity date of 10/30/01 and aggregate market values as follows: ----------------------------- AGGREGATE MARKET iSHARES INDEX FUND VALUE ----------------------------- S&P 500 $ 902,285 S&P 500/BARRA Growth 20,742 S&P 500/BARRA Value 103,711 S&P MidCap 400 72,598 S&P MidCap 400/BARRA Growth 31,113 S&P MidCap 400/BARRA Value 41,484 S&P SmallCap 600 20,742 S&P SmallCap 600/BARRA Growth 10,371 S&P SmallCap 600/BARRA Value 10,371 S&P Global 100 72,598 S&P Europe 350 383,731 S&P/TSE 60 10,371 Nasdaq Biotechnology 72,598 ----------------------------- - -------------------------------------------------------------------------------- iSHARES NOTES TO THE FINANCIAL STATEMENTS PAGE 89 iSHARES TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) 2. AGREEMENTS AND OTHER TRANSACTIONS WITH AFFILIATES Pursuant to an Investment Advisory Agreement with the Trust, Barclays Global Fund Advisors ("BGFA") manages the investment of each Fund's assets. BGFA is a California corporation indirectly owned by Barclays Bank PLC. Under this agreement, BGFA is responsible for all expenses ("Covered Expenses") of the Trust, including the cost of transfer agency, custody, fund administration, legal, audit and other services, except interest, taxes, brokerage commissions and other expenses connected with the executions of portfolio transactions, distribution fees and extraordinary expenses. Expenses related to the organization and initial registration of the Trust were borne by BGFA. For its investment management services to each Fund, BGFA is entitled to an annual advisory fee based on the average daily net assets of each Fund as follows: ---------------------------- ADVISORY iSHARES INDEX FUND FEE ---------------------------- S&P 100 0.20% S&P 500 0.09 S&P 500/BARRA Growth 0.18 S&P 500/BARRA Value 0.18 S&P MidCap 400 0.20 S&P MidCap 400/BARRA Growth 0.25 S&P MidCap 400/BARRA Value 0.25 S&P SmallCap 600 0.20 S&P SmallCap 600/BARRA Growth 0.25 S&P SmallCap 600/BARRA Value 0.25 S&P Global 100 0.40 S&P Europe 350 0.60 S&P/TSE 60 0.50 Nasdaq Biotechnology 0.50 ---------------------------- Investors Bank & Trust Company ("IBT") serves as administrator, custodian, transfer agent and securities lending agent for the Funds. As compensation for its services, IBT receives certain out-of-pocket costs, transaction fees, and asset-based fees, which are accrued daily and paid monthly. These fees are Covered Expenses as defined above. SEI Investments Distribution Company serves as each Fund's underwriter and distributor of the shares of each Fund, pursuant to a Distribution Agreement with the Trust. The distributor will deliver the Prospectus and Statement of Additional Information, if so requested, to persons purchasing Creation Units and will maintain records of both orders placed with it and confirmations of acceptance furnished by it. - -------------------------------------------------------------------------------- PAGE 90 iSHARES iSHARES TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) Barclays Global Investors Services ("BGIS"), a subsidiary of Barclays Global Investors, N.A., served as a broker-dealer for certain of the Funds. For the period ended March 31, 2001, BGIS received the following amounts in brokerage commissions from these funds, related to the purchases and sales of portfolio investments: ------------------------------- COMMISSIONS PAID TO iSHARES INDEX FUND BGIS ------------------------------- S&P MidCap 400 $ 1,662 S&P MidCap 400/BARRA Growth 1,474 ------------------------------- Certain of the officers of the Trust are also employees of IBT. 3. INVESTMENT PORTFOLIO TRANSACTIONS Purchases and sales of investments (excluding in-kind transactions and short-term securities) for the period ended March 31, 2001, were as follows: ---------------------------------------------- iSHARES INDEX FUND PURCHASES SALES ---------------------------------------------- S&P 100 $ 8,469,407 $ 8,727,123 S&P 500 93,113,331 88,337,832 S&P 500/BARRA Growth 33,981,070 34,199,281 S&P 500/BARRA Value 14,875,313 14,955,452 S&P MidCap 400 65,444,817 65,847,626 S&P MidCap 400/BARRA Growth 42,792,212 42,607,460 S&P MidCap 400/BARRA Value 8,239,236 7,344,920 S&P SmallCap 600 27,704,965 28,064,944 S&P SmallCap 600/BARRA Growth 18,135,252 17,820,473 S&P SmallCap 600/BARRA Value 5,786,553 5,307,869 S&P Global 100 5,595,464 5,460,390 S&P Europe 350 16,216,160 16,027,926 S&P/TSE 60 4,512,655 4,197,708 Nasdaq Biotechnology 9,662,232 9,700,224 ---------------------------------------------- - -------------------------------------------------------------------------------- iSHARES NOTES TO THE FINANCIAL STATEMENTS PAGE 91 iSHARES TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) In-kind transactions for the period ended March 31, 2001 were as follows: ------------------------------------------------ IN-KIND IN-KIND iSHARES INDEX FUND PURCHASES SALES ------------------------------------------------ S&P 100 $ 265,114,366 $147,303,905 S&P 500 3,962,792,180 596,616,076 S&P 500/BARRA Growth 184,549,321 -- S&P 500/BARRA Value 480,330,541 95,428,413 S&P MidCap 400 386,587,360 228,058,218 S&P MidCap 400/BARRA Growth 271,802,477 79,234,809 S&P MidCap 400/BARRA Value 95,806,257 21,297,287 S&P SmallCap 600 244,081,270 29,325,015 S&P SmallCap 600/BARRA Growth 50,996,449 18,879,277 S&P SmallCap 600/BARRA Value 79,077,051 15,940,251 S&P Global 100 121,922,376 -- S&P Europe 350 174,975,116 -- S&P/TSE 60 8,449,207 -- Nasdaq Biotechnology 130,059,836 -- ------------------------------------------------ At March 31, 2001 the aggregate unrealized appreciation and depreciation based on cost for federal income tax purposes were as follows: - ------------------------------------------------------------------------------ NET TAX UNREALIZED UNREALIZED UNREALIZED iSHARES INDEX FUND COST APPRECIATION DEPRECIATION DEPRECIATION - ------------------------------------------------------------------------------ S&P 100 $ 110,221,805 $ 1,520,594 $ (22,853,700) $ (21,333,106) S&P 500 3,486,940,494 46,763,568 (587,464,365) (540,700,797) S&P 500/BARRA Growth 188,628,811 1,231,270 (37,396,949) (36,165,679) S&P 500/BARRA Value 422,767,295 7,772,621 (35,701,845) (27,929,224) S&P MidCap 400 202,607,452 8,609,350 (38,119,472) (29,510,122) S&P MidCap 400/BARRA Growth 204,731,314 828,217 (26,904,480) (26,076,263) S&P MidCap 400/BARRA Value 85,582,493 3,811,221 (4,915,242) (1,104,021) S&P SmallCap 600 232,525,715 11,835,232 (24,773,508) (12,938,276) S&P SmallCap 600/BARRA Growth 34,224,991 1,290,854 (6,811,041) (5,520,187) S&P SmallCap 600/BARRA Value 67,438,587 3,375,467 (4,998,597) (1,623,130) S&P Global 100 122,871,207 1,382,156 (20,011,369) (18,629,213) S&P Europe 350 186,409,480 1,319,686 (22,279,230) (20,959,544) S&P/TSE 60 8,820,259 357,979 (2,539,491) (2,181,512) Nasdaq Biotechnology 127,801,081 397,503 (28,282,363) (27,884,860) - ------------------------------------------------------------------------------ 4. iSHARES TRANSACTIONS At March 31, 2001, there were an unlimited number of no par value shares of beneficial interest ("iShares") authorized. iShares are issued and redeemed by each Fund only in Creation Units or multiples thereof. Except when aggregated in Creation Units, iShares are not redeemable. Transactions in iShares for each Fund are disclosed in detail in the Statements of Changes in Net Assets. - -------------------------------------------------------------------------------- PAGE 92 iSHARES iSHARES TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) The consideration for purchase of Creation Units of a Fund generally consists of the in-kind contribution of a designated portfolio of equity securities constituting a substantial replication, or a portfolio sampling representation, of the stocks involved in the relevant Fund's underlying index and an amount of cash. A purchase transaction fee and a redemption transaction fee are charged to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units of iShares. 5. LOANS OF PORTFOLIO SECURITIES Each Fund may lend its investment securities to approved borrowers such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. Government. The collateral is maintained at a value equal to at least 100% of the current market value of the loaned securities. The risks to the Funds of securities lending are that the borrower may not provide additional collateral when required or return the securities when due. As of March 31, 2001, certain of the Funds had loaned securities which were collateralized by cash. The cash collateral received was invested in U.S. Government Agency obligations and money market mutual funds. The market value of the securities on loan at March 31, 2001 and the value of the related collateral were as follows: -------------------------------------------- VALUE OF VALUE OF iSHARES INDEX FUND SECURITIES COLLATERAL -------------------------------------------- S&P 100 $ 201,620 $ 207,129 S&P 500 69,183,533 71,643,776 S&P 500/BARRA Growth 10,746,838 11,066,458 S&P 500/BARRA Value 26,533,747 27,393,319 S&P MidCap 400 15,843,126 16,395,025 S&P MidCap 400/BARRA Growth 15,519,010 15,993,047 S&P MidCap 400/BARRA Value 6,180,234 6,424,040 S&P SmallCap 600 10,920,434 11,403,706 S&P SmallCap 600/BARRA Growth 1,403,011 1,449,621 S&P SmallCap 600/BARRA Value 1,341,838 1,421,805 S&P Global 100 989,899 1,044,600 S&P Europe 350 10,648,006 11,245,268 -------------------------------------------- 6. NEW ACCOUNTING PRONOUNCEMENT In November 2000, the American Institute of Certified Public Accountants issued a revised Audit and Accounting Guide, Audits of Investment Companies, which is effective for fiscal years beginning after December 15, 2000. The requirements of the new audit guide are not expected to have a material impact on the net assets of the Funds, or on the presentation of the Funds' financial statements. - -------------------------------------------------------------------------------- iSHARES NOTES TO THE FINANCIAL STATEMENTS PAGE 93 REPORT OF INDEPENDENT ACCOUNTANTS The Board of Trustees and Shareholders iShares Trust: In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of the funds comprising the iShares S&P Series Funds and the iShares Nasdaq Biotechnology Index Fund as listed on the table of contents, (the "Funds"), at March 31, 2001, and the results of their operations, the changes in their net assets and their financial highlights for the periods then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Funds' management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with auditing standards generally accepted in the United States of America, which require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at March 31, 2001 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion. PricewaterhouseCoopers LLP San Francisco, California May 4, 2001 - -------------------------------------------------------------------------------- PAGE 94 iSHARES TAX INFORMATION (UNAUDITED) For the period ended March 31, 2001, the iShares S&P Europe 350 Index Fund and the iShares S&P/TSE 60 Index Fund earned foreign source income of $861,356 and $98,517, respectively. In addition, the iShares S&P Europe 350 Index Fund and the iShares S&P/TSE 60 Index Fund paid foreign taxes of $90,285 and $13,997, respectively, which they intend to pass through to their shareholders pursuant to Section 853 of the Internal Revenue Code. For corporate shareholders, a portion of the income dividends paid by certain of the Funds during the period ended March 31, 2001 qualified for the dividends-received deduction. ------------------------------ DIVIDENDS- RECEIVED iSHARES INDEX FUND DEDUCTION ------------------------------ S&P 100 100.00% S&P 500 96.90 S&P 500/BARRA Growth 94.00 S&P 500/BARRA Value 79.51 S&P MidCap 400 80.55 S&P MidCap 400/BARRA Growth 27.05 S&P MidCap 400/BARRA Value 85.58 S&P SmallCap 600 32.10 S&P SmallCap 600/BARRA Growth 21.16 S&P SmallCap 600/BARRA Value 71.86 S&P Global 100 82.09 ------------------------------ - -------------------------------------------------------------------------------- iSHARES TAX INFORMATION PAGE 95 iSHARES TRUST SUPPLEMENTAL INFORMATION (UNAUDITED) The charts below present information about the differences between the daily closing price on secondary markets for shares of each iShares Fund and that Fund's net asset value. Net asset value, or "NAV", is the price per share at which each Fund issues and redeems shares. It is calculated in accordance with the standard formula for valuing mutual fund shares at the close of regular trading (normally 4:00 p.m. Eastern time) every day the New York Stock Exchange is open. The "Closing Price" of each iShares Fund is the price of the last reported trade for shares of such Fund on any major market. Each Fund's Closing Price may be below, at, or above its NAV. The NAV of each Fund will fluctuate with changes in the market value of its portfolio holdings. The trading price of each Fund will fluctuate in accordance with changes in its NAV, as well as market supply and demand. Premiums or discounts are the differences (generally expressed as a percentage) between the NAV and Closing Price of a Fund on a given day. A premium is the amount that a Fund is trading above the reported NAV, expressed as a percentage of the NAV. A discount is the amount that a Fund is trading below the reported NAV, expressed as a percentage of the NAV. A major reason for differences is that timing discrepancies can exist between the NAV and Closing Price of a Fund. Trading activity varies and it is important to note that the date/time of the last trade (which is recorded as the Closing Price) may not take place at exactly 4:00 p.m. EST when the iShares Funds normally calculate NAV. Each Fund normally trades on one or more exchanges until 4:15 p.m. EST. "Price discovery" is a term for the constant flows of information among investors, corporations and financial institutions, and can cause market prices to change and evolve throughout the trading day, even after markets are closed. Price discovery between 4:00 p.m. and 4:15 p.m. EST may result in a difference between the NAV and Closing Price of each Fund. The following information shows the frequency distributions of premiums and discounts for each of the iShares Funds included in this report. These iShares Funds commenced on various dates throughout the period, the earliest in May of 2000. The information shown for each Fund is for each full calendar quarter completed after the inception date of such Fund through the date of this report (March 31, 2001). A chart for the iShares Nasdaq Biotechnology Index Fund is not presented as the Fund only commenced operations on February 5, 2001 and did not have a full quarter of performance as of the date of this report. THE VERTICAL COLUMN OF EACH CHART SHOWS THE PREMIUM OR DISCOUNT EXPRESSED AS A PERCENTAGE OF NAV. THE HORIZONTAL COLUMN INDICATES THE NUMBER OF TRADING DAYS IN THE PERIOD COVERED BY EACH CHART. EACH BAR IN THE CHART SHOWS THE NUMBER OF TRADING DAYS IN WHICH THE ISHARES FUND TRADED WITHIN THE PREMIUM/DISCOUNT RANGE INDICATED. ALL DATA PRESENTED HERE REPRESENTS PAST PERFORMANCE, WHICH CANNOT BE USED TO PREDICT FUTURE RESULTS. - -------------------------------------------------------------------------------- PAGE 96 iSHARES iSHARES TRUST SUPPLEMENTAL INFORMATION (UNAUDITED) (CONTINUED) iSHARES S&P 100 INDEX FUND PERIOD COVERED: JANUARY 1, 2001 THROUGH MARCH 31, 2001 [GRAPH] PREMIUMS/DISCOUNTS NUMBER OF DAYS GT 6.00% 0 GT 5.50%_LT 6.00% 0 GT 5.00%_LT 5.50% 0 GT 4.50%_LT 5.00% 0 GT 4.00%_LT 4.50% 0 GT 3.50%_LT 4.00% 0 GT 3.00%_LT 3.50% 0 GT 2.50%_LT 3.00% 0 GT 2.00%_LT 2.50% 0 GT 1.50%_LT 2.00% 0 GT 1.00%_LT 1.50% 3 GT 0.50%_LT 1.00% 4 LT 0.50%_GT (0.50)% 47 LT (0.50)%_GT (1.00)% 7 LT (1.00)%_GT (1.50)% 0 LT (1.50)%_GT (2.00)% 1 LT (2.00)%_GT (2.50)% 0 LT (2.50)%_GT (3.00)% 0 LT (3.00)%_GT (3.50)% 0 LT (3.50)%_GT (4.00)% 0 LT (4.00)%_GT (4.50)% 0 LT (4.50)%_GT (5.00)% 0 LT (5.00)%_GT (5.50)% 0 LT (5.50)%_GT (6.00)% 0 LT (6.00)% 0 iSHARES S&P 500 INDEX FUND PERIOD COVERED: JULY 1, 2000 THROUGH MARCH 31, 2001 [GRAPH] PREMIUMS/DISCOUNTS NUMBER OF DAYS GT 6.00% 0 GT 5.50%_LT 6.00% 0 GT 5.00%_LT 5.50% 0 GT 4.50%_LT 5.00% 0 GT 4.00%_LT 4.50% 0 GT 3.50%_LT 4.00% 0 GT 3.00%_LT 3.50% 0 GT 2.50%_LT 3.00% 0 GT 2.00%_LT 2.50% 0 GT 1.50%_LT 2.00% 0 GT 1.00%_LT 1.50% 1 GT 0.50%_LT 1.00% 2 LT 0.50%_GT (0.50)% 178 LT (0.50)%_GT (1.00)% 6 LT (1.00)%_GT (1.50)% 0 LT (1.50)%_GT (2.00)% 0 LT (2.00)%_GT (2.50)% 1 LT (2.50)%_GT (3.00)% 0 LT (3.00)%_GT (3.50)% 0 LT (3.50)%_GT (4.00)% 0 LT (4.00)%_GT (4.50)% 0 LT (4.50)%_GT (5.00)% 0 LT (5.00)%_GT (5.50)% 0 LT (5.50)%_GT (6.00)% 0 LT (6.00)% 0 - -------------------------------------------------------------------------------- iSHARES SUPPLEMENTAL INFORMATION PAGE 97 iSHARES TRUST SUPPLEMENTAL INFORMATION (UNAUDITED) (CONTINUED) iSHARES S&P 500/BARRA GROWTH INDEX FUND PERIOD COVERED: JULY 1, 2000 THROUGH MARCH 31, 2001 [GRAPH] PREMIUMS/DISCOUNTS NUMBER OF DAYS GT 6.00% 0 GT 5.50%_LT 6.00% 0 GT 5.00%_LT 5.50% 0 GT 4.50%_LT 5.00% 0 GT 4.00%_LT 4.50% 0 GT 3.50%_LT 4.00% 0 GT 3.00%_LT 3.50% 0 GT 2.50%_LT 3.00% 0 GT 2.00%_LT 2.50% 0 GT 1.50%_LT 2.00% 0 GT 1.00%_LT 1.50% 2 GT 0.50%_LT 1.00% 11 LT 0.50%_GT (0.50)% 165 LT (0.50)%_GT (1.00)% 8 LT (1.00)%_GT (1.50)% 1 LT (1.50)%_GT (2.00)% 1 LT (2.00)%_GT (2.50)% 0 LT (2.50)%_GT (3.00)% 0 LT (3.00)%_GT (3.50)% 0 LT (3.50)%_GT (4.00)% 0 LT (4.00)%_GT (4.50)% 0 LT (4.50)%_GT (5.00)% 0 LT (5.00)%_GT (5.50)% 0 LT (5.50)%_GT (6.00)% 0 LT (6.00)% 0 iSHARES S&P 500/BARRA VALUE INDEX FUND PERIOD COVERED: JULY 1, 2000 THROUGH MARCH 31, 2001 [GRAPH] PREMIUMS/DISCOUNTS NUMBER OF DAYS GT 6.00% 0 GT 5.50%_LT 6.00% 0 GT 5.00%_LT 5.50% 0 GT 4.50%_LT 5.00% 0 GT 4.00%_LT 4.50% 0 GT 3.50%_LT 4.00% 0 GT 3.00%_LT 3.50% 0 GT 2.50%_LT 3.00% 0 GT 2.00%_LT 2.50% 0 GT 1.50%_LT 2.00% 1 GT 1.00%_LT 1.50% 0 GT 0.50%_LT 1.00% 4 LT 0.50%_GT (0.50)% 180 LT (0.50)%_GT (1.00)% 3 LT (1.00)%_GT (1.50)% 0 LT (1.50)%_GT (2.00)% 0 LT (2.00)%_GT (2.50)% 0 LT (2.50)%_GT (3.00)% 0 LT (3.00)%_GT (3.50)% 0 LT (3.50)%_GT (4.00)% 0 LT (4.00)%_GT (4.50)% 0 LT (4.50)%_GT (5.00)% 0 LT (5.00)%_GT (5.50)% 0 LT (5.50)%_GT (6.00)% 0 LT (6.00)% 0 - -------------------------------------------------------------------------------- PAGE 98 iSHARES iSHARES TRUST SUPPLEMENTAL INFORMATION (UNAUDITED) (CONTINUED) iSHARES S&P MIDCAP 400 INDEX FUND PERIOD COVERED: JULY 1, 2000 THROUGH MARCH 31, 2001 [GRAPH] PREMIUMS/DISCOUNTS NUMBER OF DAYS GT 6.00% 0 GT 5.50%_LT 6.00% 0 GT 5.00%_LT 5.50% 0 GT 4.50%_LT 5.00% 0 GT 4.00%_LT 4.50% 0 GT 3.50%_LT 4.00% 0 GT 3.00%_LT 3.50% 0 GT 2.50%_LT 3.00% 0 GT 2.00%_LT 2.50% 0 GT 1.50%_LT 2.00% 0 GT 1.00%_LT 1.50% 4 GT 0.50%_LT 1.00% 181 LT 0.50%_GT (0.50)% 0 LT (0.50)%_GT (1.00)% 2 LT (1.00)%_GT (1.50)% 1 LT (1.50)%_GT (2.00)% 0 LT (2.00)%_GT (2.50)% 0 LT (2.50)%_GT (3.00)% 0 LT (3.00)%_GT (3.50)% 0 LT (3.50)%_GT (4.00)% 0 LT (4.00)%_GT (4.50)% 0 LT (4.50)%_GT (5.00)% 0 LT (5.00)%_GT (5.50)% 0 LT (5.50)%_GT (6.00)% 0 LT (6.00)% 0 iSHARES S&P MIDCAP 400/BARRA GROWTH INDEX FUND PERIOD COVERED: OCTOBER 1, 2000 THROUGH MARCH 31, 2001 [GRAPH] PREMIUMS/DISCOUNTS NUMBER OF DAYS GT 6.00% 0 GT 5.50%_LT 6.00% 0 GT 5.00%_LT 5.50% 0 GT 4.50%_LT 5.00% 0 GT 4.00%_LT 4.50% 0 GT 3.50%_LT 4.00% 0 GT 3.00%_LT 3.50% 0 GT 2.50%_LT 3.00% 0 GT 2.00%_LT 2.50% 2 GT 1.50%_LT 2.00% 3 GT 1.00%_LT 1.50% 8 GT 0.50%_LT 1.00% 104 LT 0.50%_GT (0.50)% 0 LT (0.50)%_GT (1.00)% 5 LT (1.00)%_GT (1.50)% 1 LT (1.50)%_GT (2.00)% 1 LT (2.00)%_GT (2.50)% 1 LT (2.50)%_GT (3.00)% 0 LT (3.00)%_GT (3.50)% 0 LT (3.50)%_GT (4.00)% 0 LT (4.00)%_GT (4.50)% 0 LT (4.50)%_GT (5.00)% 0 LT (5.00)%_GT (5.50)% 0 LT (5.50)%_GT (6.00)% 0 LT (6.00)% 0 - -------------------------------------------------------------------------------- iSHARES SUPPLEMENTAL INFORMATION PAGE 99 iSHARES TRUST SUPPLEMENTAL INFORMATION (UNAUDITED) (CONTINUED) iSHARES S&P MIDCAP 400/BARRA VALUE INDEX FUND PERIOD COVERED: OCTOBER 1, 2000 THROUGH MARCH 31, 2001 [GRAPH] PREMIUMS/DISCOUNTS NUMBER OF DAYS GT 6.00% 0 GT 5.50%_LT 6.00% 0 GT 5.00%_LT 5.50% 0 GT 4.50%_LT 5.00% 0 GT 4.00%_LT 4.50% 0 GT 3.50%_LT 4.00% 0 GT 3.00%_LT 3.50% 0 GT 2.50%_LT 3.00% 0 GT 2.00%_LT 2.50% 0 GT 1.50%_LT 2.00% 1 GT 1.00%_LT 1.50% 1 GT 0.50%_LT 1.00% 120 LT 0.50%_GT (0.50)% 0 LT (0.50)%_GT (1.00)% 2 LT (1.00)%_GT (1.50)% 1 LT (1.50)%_GT (2.00)% 0 LT (2.00)%_GT (2.50)% 0 LT (2.50)%_GT (3.00)% 0 LT (3.00)%_GT (3.50)% 0 LT (3.50)%_GT (4.00)% 0 LT (4.00)%_GT (4.50)% 0 LT (4.50)%_GT (5.00)% 0 LT (5.00)%_GT (5.50)% 0 LT (5.50)%_GT (6.00)% 0 LT (6.00)% 0 iSHARES S&P SMALLCAP 600 INDEX FUND PERIOD COVERED: JULY 1, 2000 THROUGH MARCH 31, 2001 [GRAPH] PREMIUMS/DISCOUNTS NUMBER OF DAYS GT 6.00% 0 GT 5.50%_LT 6.00% 0 GT 5.00%_LT 5.50% 0 GT 4.50%_LT 5.00% 0 GT 4.00%_LT 4.50% 0 GT 3.50%_LT 4.00% 0 GT 3.00%_LT 3.50% 0 GT 2.50%_LT 3.00% 0 GT 2.00%_LT 2.50% 0 GT 1.50%_LT 2.00% 1 GT 1.00%_LT 1.50% 7 GT 0.50%_LT 1.00% 169 LT 0.50%_GT (0.50)% 0 LT (0.50)%_GT (1.00)% 8 LT (1.00)%_GT (1.50)% 3 LT (1.50)%_GT (2.00)% 0 LT (2.00)%_GT (2.50)% 0 LT (2.50)%_GT (3.00)% 0 LT (3.00)%_GT (3.50)% 0 LT (3.50)%_GT (4.00)% 0 LT (4.00)%_GT (4.50)% 0 LT (4.50)%_GT (5.00)% 0 LT (5.00)%_GT (5.50)% 0 LT (5.50)%_GT (6.00)% 0 LT (6.00)% 0 - -------------------------------------------------------------------------------- PAGE 100 iSHARES iSHARES TRUST SUPPLEMENTAL INFORMATION (UNAUDITED) (CONTINUED) iSHARES S&P SMALLCAP 600/BARRA GROWTH INDEX FUND PERIOD COVERED: OCTOBER 1, 2000 THROUGH MARCH 31, 2001 [GRAPH] PREMIUMS/DISCOUNTS NUMBER OF DAYS GT 6.00% 0 GT 5.50%_LT 6.00% 0 GT 5.00%_LT 5.50% 0 GT 4.50%_LT 5.00% 0 GT 4.00%_LT 4.50% 0 GT 3.50%_LT 4.00% 0 GT 3.00%_LT 3.50% 0 GT 2.50%_LT 3.00% 0 GT 2.00%_LT 2.50% 2 GT 1.50%_LT 2.00% 5 GT 1.00%_LT 1.50% 12 GT 0.50%_LT 1.00% 92 LT 0.50%_GT (0.50)% 0 LT (0.50)%_GT (1.00)% 10 LT (1.00)%_GT (1.50)% 1 LT (1.50)%_GT (2.00)% 0 LT (2.00)%_GT (2.50)% 1 LT (2.50)%_GT (3.00)% 1 LT (3.00)%_GT (3.50)% 1 LT (3.50)%_GT (4.00)% 0 LT (4.00)%_GT (4.50)% 0 LT (4.50)%_GT (5.00)% 0 LT (5.00)%_GT (5.50)% 0 LT (5.50)%_GT (6.00)% 0 LT (6.00)% 0 iSHARES S&P SMALLCAP 600/BARRA VALUE INDEX FUND PERIOD COVERED: OCTOBER 1, 2000 THROUGH MARCH 31, 2001 [GRAPH] PREMIUMS/DISCOUNTS NUMBER OF DAYS GT 6.00% 0 GT 5.50%_LT 6.00% 0 GT 5.00%_LT 5.50% 0 GT 4.50%_LT 5.00% 0 GT 4.00%_LT 4.50% 0 GT 3.50%_LT 4.00% 0 GT 3.00%_LT 3.50% 0 GT 2.50%_LT 3.00% 0 GT 2.00%_LT 2.50% 0 GT 1.50%_LT 2.00% 2 GT 1.00%_LT 1.50% 11 GT 0.50%_LT 1.00% 97 LT 0.50%_GT (0.50)% 0 LT (0.50)%_GT (1.00)% 9 LT (1.00)%_GT (1.50)% 6 LT (1.50)%_GT (2.00)% 0 LT (2.00)%_GT (2.50)% 0 LT (2.50)%_GT (3.00)% 0 LT (3.00)%_GT (3.50)% 0 LT (3.50)%_GT (4.00)% 0 LT (4.00)%_GT (4.50)% 0 LT (4.50)%_GT (5.00)% 0 LT (5.00)%_GT (5.50)% 0 LT (5.50)%_GT (6.00)% 0 LT (6.00)% 0 - -------------------------------------------------------------------------------- iSHARES SUPPLEMENTAL INFORMATION PAGE 101 iSHARES TRUST SUPPLEMENTAL INFORMATION (UNAUDITED) (CONTINUED) iSHARES S&P GLOBAL 100 INDEX FUND PERIOD COVERED: JANUARY 1, 2001 THROUGH MARCH 31, 2001 [GRAPH] PREMIUMS/DISCOUNTS NUMBER OF DAYS GT 6.00% 0 GT 5.50%_LT 6.00% 0 GT 5.00%_LT 5.50% 0 GT 4.50%_LT 5.00% 0 GT 4.00%_LT 4.50% 0 GT 3.50%_LT 4.00% 0 GT 3.00%_LT 3.50% 0 GT 2.50%_LT 3.00% 2 GT 2.00%_LT 2.50% 0 GT 1.50%_LT 2.00% 5 GT 1.00%_LT 1.50% 14 GT 0.50%_LT 1.00% 32 LT 0.50%_GT (0.50)% 0 LT (0.50)%_GT (1.00)% 3 LT (1.00)%_GT (1.50)% 5 LT (1.50)%_GT (2.00)% 0 LT (2.00)%_GT (2.50)% 0 LT (2.50)%_GT (3.00)% 0 LT (3.00)%_GT (3.50)% 0 LT (3.50)%_GT (4.00)% 0 LT (4.00)%_GT (4.50)% 0 LT (4.50)%_GT (5.00)% 0 LT (5.00)%_GT (5.50)% 0 LT (5.50)%_GT (6.00)% 0 LT (6.00)% 0 iSHARES S&P EUROPE 350 INDEX FUND PERIOD COVERED: OCTOBER 1, 2000 THROUGH MARCH 31, 2001 [GRAPH] PREMIUMS/DISCOUNTS NUMBER OF DAYS GT 6.00% 1 GT 5.50%_LT 6.00% 0 GT 5.00%_LT 5.50% 1 GT 4.50%_LT 5.00% 1 GT 4.00%_LT 4.50% 2 GT 3.50%_LT 4.00% 11 GT 3.00%_LT 3.50% 19 GT 2.50%_LT 3.00% 12 GT 2.00%_LT 2.50% 22 GT 1.50%_LT 2.00% 16 GT 1.00%_LT 1.50% 10 GT 0.50%_LT 1.00% 16 LT 0.50%_GT (0.50)% 0 LT (0.50)%_GT (1.00)% 13 LT (1.00)%_GT (1.50)% 1 LT (1.50)%_GT (2.00)% 0 LT (2.00)%_GT (2.50)% 0 LT (2.50)%_GT (3.00)% 0 LT (3.00)%_GT (3.50)% 0 LT (3.50)%_GT (4.00)% 0 LT (4.00)%_GT (4.50)% 0 LT (4.50)%_GT (5.00)% 0 LT (5.00)%_GT (5.50)% 0 LT (5.50)%_GT (6.00)% 0 LT (6.00)% 0 - -------------------------------------------------------------------------------- PAGE 102 iSHARES iSHARES TRUST SUPPLEMENTAL INFORMATION (UNAUDITED) (CONTINUED) iSHARES S&P/TSE 60 INDEX FUND PERIOD COVERED: JULY 1, 2000 THROUGH MARCH 31, 2001 [GRAPH] PREMIUMS/DISCOUNTS NUMBER OF DAYS GT 6.00% 1 GT 5.50%_LT 6.00% 0 GT 5.00%_LT 5.50% 0 GT 4.50%_LT 5.00% 1 GT 4.00%_LT 4.50% 2 GT 3.50%_LT 4.00% 3 GT 3.00%_LT 3.50% 2 GT 2.50%_LT 3.00% 6 GT 2.00%_LT 2.50% 4 GT 1.50%_LT 2.00% 8 GT 1.00%_LT 1.50% 18 GT 0.50%_LT 1.00% 71 LT 0.50%_GT (0.50)% 0 LT (0.50)%_GT (1.00)% 27 LT (1.00)%_GT (1.50)% 14 LT (1.50)%_GT (2.00)% 8 LT (2.00)%_GT (2.50)% 5 LT (2.50)%_GT (3.00)% 2 LT (3.00)%_GT (3.50)% 6 LT (3.50)%_GT (4.00)% 4 LT (4.00)%_GT (4.50)% 1 LT (4.50)%_GT (5.00)% 3 LT (5.00)%_GT (5.50)% 2 LT (5.50)%_GT (6.00)% 0 LT (6.00)% 0 - -------------------------------------------------------------------------------- iSHARES SUPPLEMENTAL INFORMATION PAGE 103 i Shares BARCLAYS GLOBAL INVESTORS 45 Fremont Street San Francisco, CA 94105 www.ishares.com 1-800-iSHARES 1-800-474-2737 iShares are distributed by SEI Investments Distribution Co. Barclays Global Fund Advisors serves as an adviser to iShares and is a subsidiary of Barclays Global Investors, N.A., neither of which is affiliated with SEI. IBT serves as administrator, custodian, securities lending agent and transfer agent for the iShares S&P Series and the iShares Nasdaq Series. iShares are not sponsored, endorsed, sold or promoted by Standard & Poor's or Nasdaq Stock Market, Inc. Nor do these companies make any representation regarding the advisability of investing in iShares. (C)2000 Barclays Global Investors. All rights reserved. iShares is a servicemark of Barclays Global Investors, N.A. All other trademarks, servicemarks or registered trademarks are the property of their respective owners. BGI-F01101000 Not FDIC insured Have no bank guarantee May lose value -----END PRIVACY-ENHANCED MESSAGE-----