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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR/A

Amendment No. 1

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number     811-09729                                                                                                                                                                  

iShares Trust

(Exact name of registrant as specified in charter)

45 Fremont Street, San Francisco, CA	94105
(Address of principal executive offices)	(Zip code)

CT Corporation

1209 Orange Street, Wilmington, New Castle County, Delaware 19801

(Name and address of agent for service)

Registrant’s telephone number, including area code:     1-800-474-2737                                             

Date of fiscal year end:     March 31, 2004                                             

Date of reporting period:     March 31, 2004                                             

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

         A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. Section 3507.

iShares^®

ITEM 1. Report to Stockholders

2004 ANNUAL REPORT TO SHAREHOLDERS

MARCH 31, 2004

iSHARES S&P 100 INDEX FUND

iSHARES S&P GLOBAL 100 INDEX FUND

iSHARES S&P GLOBAL ENERGY SECTOR INDEX FUND

iSHARES S&P GLOBAL FINANCIALS SECTOR INDEX FUND

iSHARES S&P GLOBAL HEALTHCARE SECTOR INDEX FUND

iSHARES S&P GLOBAL TECHNOLOGY SECTOR INDEX FUND

iSHARES S&P GLOBAL TELECOMMUNICATIONS SECTOR INDEX FUND

iSHARES S&P EUROPE 350 INDEX FUND

iSHARES S&P LATIN AMERICA 40 INDEX FUND

iSHARES S&P/TOPIX 150 INDEX FUND

iSHARES NASDAQ BIOTECHNOLOGY INDEX FUND

Table of Contents

Shareholder Letter	1
Managers’ Discussion & Analysis	4
Schedules of Investments	26
iShares S&P 100 Index Fund	26
iShares S&P Global 100 Index Fund	30
iShares S&P Global Energy Sector Index Fund	35
iShares S&P Global Financials Sector Index Fund	39
iShares S&P Global Healthcare Sector Index Fund	45
iShares S&P Global Technology Sector Index Fund	49
iShares S&P Global Telecommunications Sector Index Fund	54
iShares S&P Europe 350 Index Fund	58
iShares S&P Latin America 40 Index Fund	66
iShares S&P/TOPIX 150 Index Fund	67
iShares Nasdaq Biotechnology Index Fund	72
Financial Statements	76
Financial Highlights	84
Notes to the Financial Statements	92
Report of Independent Registered Public Accounting Firm	100
Tax Information (Unaudited)	101
Supplemental Information (Unaudited)	102
Trustee Information (Unaudited)	107
iShares Family of Funds	110

To Our Shareholders:

Stock markets around the world generally posted solid gains during the past twelve months, reversing the trend of the past several years. The uncertainty that characterized the first few months of the fiscal year, including war in Iraq and high unemployment levels, diminished as the year progressed. In the U.S., healthy gross domestic product (GDP) growth in the third and fourth quarters of 2003 contributed to the performance trend. The improving economic climate in the U.S. was echoed in countries around the world, in some part due to increased export demand from the U.S. While the performance of the past year has been a welcome relief, there is no guarantee that more challenging conditions will not return.

The iShares^® Funds continue to innovate and expand, offering more tools that help investors tailor their portfolios to achieve diversity and address volatility. For example, the iShares family of funds recently partnered with the New York Stock Exchange (the “NYSE”) and introduced two new funds based on NYSE indexes. The iShares NYSE Composite Index Fund provides broad-based exposure to common stocks, ADRs, real estate investment trusts and tracking stocks listed on the NYSE. The iShares NYSE 100 Index Fund offers exposure to the largest 100 U.S. companies, based on market capitalization, listed on the NYSE. Launched late in 2003, the iShares Dow Jones Select Dividend Index Fund provides investors with exposure to fifty of the highest dividend-yielding securities in the Dow Jones U.S. Total Market Index. The iShares family of funds has also added the iShares Lehman TIPS Bond Fund, which provides the opportunity to gain exposure to inflation-protected government securities.

With the addition of these iShares Funds, investors can achieve even more diversity in their portfolios – and at lower cost, since iShares Fund fees are, on average, about half those of actively managed funds.¹ With more than 85 different funds in the iShares family of funds to choose from, investors have the ability to build a diverse portfolio that covers a wide range of market segments with various capitalizations and sectors, as well as value and growth, international and fixed income securities. That is important because market segments do not tend to move in tandem, particularly in volatile markets. Economic factors, including inflation, interest rate levels, currency valuations or the price of oil, as well as the normal pace of the economic cycle, all may result in one market segment outperforming another.

As market conditions change, we encourage you to talk with your financial advisor about what blend of investments or asset allocation can best help you meet your financial goals. We will continue to work closely with the financial advisor community to introduce innovative strategies and structures for their clients’ portfolios. To learn more about the iShares Funds, please visit our web site, www.iShares.com.

Regardless of market conditions, a sound, disciplined investing plan is essential. Such a plan should be grounded in key concepts: such as keeping the costs associated with investing as low as possible, managing risk and maintaining a diversified portfolio. That is why we believe the iShares Funds are an indispensable tool for investors. And that is also why more and more investors have recognized the benefits of the iShares Funds. Assets under management for the iShares family of funds continue to grow, and, as of March 31, 2004, had reached $72.8 billion.

On behalf of the iShares family of funds, we thank you for making the iShares Funds a part of your portfolio. We look forward to meeting your investment needs in the year ahead.

/s/ Lee T. Kranefuss

Lee T. Kranefuss

President and Chairman of the Board of Trustees

iShares Trust

¹ Morningstar Principia, BGI analysis 3/04.

SHAREHOLDER LETTER 1

The iShares Funds are distributed by SEI Investments Distribution Co. (SEI). Barclays Global Fund Advisors (BGFA) serves as an advisor to the iShares Funds. Barclays Global Investors Services (BGIS) assists in the marketing of the iShares Funds. BGFA and BGIS are subsidiaries of Barclays Global Investors, N.A., none of which is affiliated with SEI.

To determine if the Fund(s) are an appropriate investment for you, carefully consider the Funds’ investment objectives, risk factors and charges and expenses before investing. This and other information can be found in the Funds’ prospectuses, which may be obtained by calling 1-800-iShares or by visiting www.iShares.com. Read the prospectus carefully before investing.

There are risks involved with investing, including possible loss of principal. Diversification may not protect against market risk. An investment in the Funds is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The annual management fees of the iShares Funds may be substantially less than those of most mutual funds. iShares transactions will result in brokerage commissions, but the savings from lower annual fees may help offset these costs.

iShares is a registered trademark of Barclays Global Investors, N.A. The iShares Funds are not sponsored, endorsed, or issued by Lehman Brothers, nor are they sponsored, endorsed, issued, sold or promoted by Dow Jones & Company, Inc. or the New York Stock Exchange, Inc. None of these companies make any representation regarding the advisability of investing in the iShares Funds. Neither SEI nor BGI, nor any of their affiliates, are affiliated with the companies listed above.

This advertising section does not constitute part of the 2004 Annual Report.

2 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

THIS PAGE INTENTIONALLY LEFT BLANK.

3

Managers’ Discussion & Analysis

iSHARES^® S&P 100 INDEX FUND

Performance as of 3/31/04

Average Annual Total Returns						Cumulative Total Returns
Year Ended 3/31/04			Inception to 3/31/04			Inception to 3/31/04
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
30.55%	30.64%	30.87%	(6.70)%	(6.70)%	(6.52)%	(21.21)%	(21.21)%	(20.69)%

Total returns for the periods since inception are calculated from the inception date of the Fund (10/23/00). “Average annual total returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative total returns” represent the total change in value of an investment over the periods indicated.

A fund’s per share net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which the shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since fund shares typically do not trade in the secondary market until several days after fund inception, for the period from inception to the first day of secondary market trading in fund shares (10/27/00), the NAV of the Fund is used as a proxy for secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the Index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. The returns shown in the tables above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. 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. The Fund’s past performance is no guarantee of future results.

GROWTH OF $10,000 INVESTMENT

SINCE INCEPTION AT NET ASSET VALUE

[GRAPHIC APPEARS HERE]

	iSHARES S&P 100 INDEX FUND		STANDARD & POOR’S 100 INDEX
Oct 23, 2000	$	10,000	$	10,000
Oct 31, 2000	$	10,226	$	10,227
Nov 30, 2000	$	9,507	$	9,509
Dec 31, 2000	$	9,370	$	9,368
Jan 31, 2001	$	9,765	$	9,767
Feb 28, 2001	$	8,758	$	8,760
Mar 31, 2001	$	8,093	$	8,096
Apr 30, 2001	$	8,835	$	8,840
May 31, 2001	$	8,855	$	8,863
Jun 30, 2001	$	8,664	$	8,672
Jul 31, 2001	$	8,534	$	8,545
Aug 31, 2001	$	7,933	$	7,942
Sep 30, 2001	$	7,331	$	7,340
Oct 31, 2001	$	7,493	$	7,503
Nov 30, 2001	$	8,057	$	8,070
Dec 31, 2001	$	8,059	$	8,074
Jan 31, 2002	$	7,917	$	7,934
Feb 28, 2002	$	7,777	$	7,793
Mar 31, 2002	$	7,994	$	8,013
Apr 30, 2002	$	7,371	$	7,389
May 31, 2002	$	7,336	$	7,356
Jun 30, 2002	$	6,805	$	6,823
Jul 31, 2002	$	6,377	$	6,395
Aug 31, 2002	$	6,413	$	6,432
Sep 30, 2002	$	5,678	$	5,695
Oct 31, 2002	$	6,298	$	6,319
Nov 30, 2002	$	6,693	$	6,716
Dec 31, 2002	$	6,228	$	6,250
Jan 31, 2003	$	6,066	$	6,088
Feb 28, 2003	$	5,975	$	5,998
Mar 31, 2003	$	6,036	$	6,060
Apr 30, 2003	$	6,554	$	6,582
May 31, 2003	$	6,815	$	6,844
Jun 30, 2003	$	6,925	$	6,957
Jul 31, 2003	$	7,059	$	7,093
Aug 31, 2003	$	7,126	$	7,162
Sep 30, 2003	$	7,070	$	7,104
Oct 31, 2003	$	7,385	$	7,423
Nov 30, 2003	$	7,406	$	7,446
Dec 31, 2003	$	7,846	$	7,891
Jan 31, 2004	$	7,989	$	8,036
Feb 29, 2004	$	8,063	$	8,111
Mar 31, 2004	$	7,881	$	7,930

Performance figures assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the Index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund’s past performance is no guarantee of future results.

4 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

FUND ALLOCATION BY SECTOR

(% of Net Assets)

[GRAPHIC APPEARS HERE]

Consumer Discretionary	7.93	%
Consumer Staples	15.56	%
Energy	5.88	%
Financials	20.58	%
Health Care	13.09	%
Industrials	10.86	%
Information Technology	17.97	%
Materials	2.54	%
Short-Term and Net Other Assets	0.15	%
Telecommunication Services	3.93	%
Utilities	1.51	%

The iShares S&P 100 Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Standard & Poor’s 100 Index (the “Index”). For the one-year period ended March 31, 2004 (the “reporting period”), the Fund returned 30.55%, compared to a return of 30.87% by the Index.

Equity markets rebounded during the reporting period. Positive economic news and corporate earnings growth provided signs of encouragement during the reporting period, and equities responded positively. While gross domestic product (GDP) figures revealed signs of economic growth during the reporting period, jobless claims remained high during much of the period, leading to concerns about the strength of the recovery. However, in January the unemployment rate fell to 5.6%, the lowest rate since the 5.4% recorded in October 2001. Jobless claims also began to drop, dipping to a three-year low by mid-March. Even so, at its March 16 meeting the Federal Reserve Board kept its benchmark interest rate at its 46-year low of 1.0%, citing low inflation, ample factory capacity and high unemployment levels.

Within the Index, every sector posted positive returns. Financial stocks led the way, as equity valuations rose and investor activity increased. Consumer discretionary stocks also enjoyed a resurgence during the reporting period. Performance was also strong for many information technology stocks. Within the information technology sector, some robust performance mixed with more lackluster returns for several bellwether stocks resulted in a healthy, but not top-performing, average for the group.

Among the Fund’s ten largest holdings, Cisco Systems Inc. (2.80% of the net assets of the Fund as of March 31, 2004) was the top performer with a gain of 81.59% during the reporting period. Intel Corp. (3.06% of the net assets of the Fund as of March 31, 2004) returned 67.08%. However, information technology giant Microsoft Corp. (4.67% of the net assets of the Fund as of March 31, 2004) rose a more modest 2.97%, the weakest performance among the ten largest holdings. Financial company Citigroup Inc. (4.61% of the net assets of the Fund as of March 31, 2004) climbed 50.07%, insurance carrier American International Group Inc. (3.22% of the net assets of the Fund as of March 31, 2004) rose 44.29%, and Bank of America Corp. (2.89% of the net assets of the Fund as of March 31, 2004) gained 21.15%. Wal-Mart Stores Inc. (4.48% of the Fund’s net assets as of March 31, 2004) returned 14.72% during the reporting period.

MANAGERS’ DISCUSSION & ANALYSIS 5

Managers’ Discussion & Analysis

iSHARES^® S&P GLOBAL 100 INDEX FUND

Performance as of 3/31/04

Average Annual Total Returns						Cumulative Total Returns
Year Ended 3/31/04			Inception to 3/31/04			Inception to 3/31/04
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
37.68%	38.46%	38.64%	(5.91)%	(5.69)%	(5.12)%	(18.32)%	(17.68)%	(16.02)%

Total returns for the periods since inception are calculated from the inception date of the Fund (12/05/00). “Average annual total returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative total returns” represent the total change in value of an investment over the periods indicated.

A fund’s per share net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which the shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since fund shares typically do not trade in the secondary market until several days after fund inception, for the period from inception to the first day of secondary market trading in fund shares (12/08/00), the NAV of the Fund is used as a proxy for secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the Index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. The returns shown in the tables above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. 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. The Fund’s past performance is no guarantee of future results.

GROWTH OF $10,000 INVESTMENT

SINCE INCEPTION AT NET ASSET VALUE

[GRAPHIC APPEARS HERE]

	iSHARES S&P GLOBAL 100 INDEX FUND		STANDARD & POOR’S GLOBAL 100 INDEX
Dec 5, 2000	$	10,000	$	10,000
Dec 31, 2000	$	9,612	$	9,670
Jan 31, 2001	$	9,939	$	10,028
Feb 28, 2001	$	8,962	$	9,049
Mar 31, 2001	$	8,406	$	8,462
Apr 30, 2001	$	9,175	$	9,249
May 31, 2001	$	8,974	$	9,044
Jun 30, 2001	$	8,706	$	8,811
Jul 31, 2001	$	8,503	$	8,604
Aug 31, 2001	$	8,013	$	8,116
Sep 30, 2001	$	7,443	$	7,537
Oct 31, 2001	$	7,684	$	7,789
Nov 30, 2001	$	8,150	$	8,264
Dec 31, 2001	$	8,180	$	8,313
Jan 31, 2002	$	7,832	$	7,937
Feb 28, 2002	$	7,707	$	7,850
Mar 31, 2002	$	7,959	$	8,100
Apr 30, 2002	$	7,463	$	7,610
May 31, 2002	$	7,414	$	7,561
Jun 30, 2002	$	6,980	$	7,136
Jul 31, 2002	$	6,430	$	6,560
Aug 31, 2002	$	6,439	$	6,583
Sep 30, 2002	$	5,685	$	5,804
Oct 31, 2002	$	6,265	$	6,406
Nov 30, 2002	$	6,611	$	6,758
Dec 31, 2002	$	6,220	$	6,354
Jan 31, 2003	$	5,994	$	6,119
Feb 28, 2003	$	5,895	$	6,023
Mar 31, 2003	$	5,933	$	6,059
Apr 30, 2003	$	6,465	$	6,608
May 31, 2003	$	6,753	$	6,900
Jun 30, 2003	$	6,858	$	7,019
Jul 31, 2003	$	6,985	$	7,150
Aug 31, 2003	$	7,051	$	7,218
Sep 30, 2003	$	7,120	$	7,288
Oct 31, 2003	$	7,465	$	7,635
Nov 30, 2003	$	7,595	$	7,780
Dec 31, 2003	$	8,118	$	8,319
Jan 31, 2004	$	8,270	$	8,492
Feb 29, 2004	$	8,397	$	8,636
Mar 31, 2004	$	8,168	$	8,400

Performance figures assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the Index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund’s past performance is no guarantee of future results.

6 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

FUND ALLOCATION BY SECTOR

(% of Net Assets)

[GRAPHIC APPEARS HERE]

Consumer Discretionary	8.06	%
Consumer Staples	13.74	%
Energy	11.62	%
Financials	20.32	%
Health Care	13.49	%
Industrials	7.78	%
Information Technology	16.61	%
Materials	2.68	%
Short-Term and Net Other Assets	0.30	%
Telecommunication Services	4.56	%
Utilities	0.84	%

The iShares S&P Global 100 Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Standard & Poor’s Global 100 Index (the “Index”). For the one-year period ended March 31, 2004 (the “reporting period”), the Fund returned 37.68%, compared to a return of 38.64% by the Index.

Global equity markets rebounded during the reporting period. In the U.S., the Federal Reserve Board cut short-term interest rates by 0.25% to 1.0%, the lowest level since the Eisenhower administration. Gross domestic product (“GDP”) levels grew throughout the year, and corporate earnings levels improved. Unemployment rates remained a problem for much of the reporting period, rising to a nine-year high before declining in the final few months.

Japan and other Asian markets enjoyed increased export levels, largely due to improving economic conditions in the U.S. and, to a lesser extent, burgeoning demand from China. For the fourth quarter of 2003, Japan delivered GDP annual growth of 7%, its highest level in 13 years.

In Europe, many markets also rebounded, thanks to increased export levels to both the U.S. and other European neighbors. A strong currency posed a concern about export growth, but did not appear to hinder demand during the reporting period. For U.S.-based investors, the strong local currency boosted investment returns.

All of the Fund’s ten largest holdings at March 31, 2004 logged gains during the reporting period. Intel Corp. (2.58% of the net assets of the Fund as of March 31, 2004) led the way as the information technology sector enjoyed a resurgence during the reporting period. Microsoft Corp. (3.47% of the net assets of the Fund as of March 31, 2004) posted more modest gains during the reporting period.

Financial companies generally performed well during the reporting period, benefiting from renewed investor interest, improved market valuations, and low interest rates. Citigroup Inc. (3.85% of the net assets of the Fund as of March 31, 2004), American International Group Inc. (2.71% of the net assets of the Fund as of March 31, 2004), and HSBC Holdings PLC (2.31% of the net assets of the Fund as of March 31, 2004) all logged gains during the reporting period.

MANAGERS’ DISCUSSION & ANALYSIS 7

Managers’ Discussion & Analysis

iSHARES^® S&P GLOBAL ENERGY SECTOR INDEX FUND

Performance as of 3/31/04

Average Annual Total Returns						Cumulative Total Returns
Year Ended 3/31/04			Inception to 3/31/04			Inception to 3/31/04
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
36.55%	38.66%	36.30%	9.79%	10.71%	9.22%	24.92%	27.45%	23.35%

Total returns for the periods since inception are calculated from the inception date of the Fund (11/12/01). “Average annual total returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative total returns” represent the total change in value of an investment over the periods indicated.

A fund’s per share net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which the shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since fund shares typically do not trade in the secondary market until several days after fund inception, for the period from inception to the first day of secondary market trading in fund shares (11/16/01), the NAV of the Fund is used as a proxy for secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the Index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. The returns shown in the tables above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. 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. The Fund’s past performance is no guarantee of future results.

GROWTH OF $10,000 INVESTMENT

SINCE INCEPTION AT NET ASSET VALUE

[GRAPHIC APPEARS HERE]

	iSHARES S&P GLOBAL ENERGY SECTOR INDEX FUND		STANDARD & POOR’S GLOBAL ENERGY SECTOR INDEX
Nov 12, 2001	$	10,000	$	10,000
Nov 30, 2001	$	9,472	$	9,460
Dec 31, 2001	$	9,995	$	9,999
Jan 31, 2002	$	9,815	$	9,797
Feb 28, 2002	$	10,307	$	10,324
Mar 31, 2002	$	11,009	$	11,009
Apr 30, 2002	$	10,676	$	10,610
May 31, 2002	$	10,808	$	10,776
Jun 30, 2002	$	10,779	$	10,796
Jul 31, 2002	$	9,644	$	9,591
Aug 31, 2002	$	9,710	$	9,648
Sep 30, 2002	$	8,867	$	8,730
Oct 31, 2002	$	8,954	$	8,908
Nov 30, 2002	$	9,149	$	9,099
Dec 31, 2002	$	9,436	$	9,360
Jan 31, 2003	$	9,064	$	8,982
Feb 28, 2003	$	9,136	$	9,019
Mar 31, 2003	$	9,148	$	9,050
Apr 30, 2003	$	9,234	$	9,136
May 31, 2003	$	10,138	$	10,033
Jun 30, 2003	$	10,203	$	10,119
Jul 31, 2003	$	9,938	$	9,860
Aug 31, 2003	$	10,358	$	10,253
Sep 30, 2003	$	10,230	$	10,125
Oct 31, 2003	$	10,426	$	10,296
Nov 30, 2003	$	10,609	$	10,487
Dec 31, 2003	$	12,115	$	11,985
Jan 31, 2004	$	11,845	$	11,748
Feb 29, 2004	$	12,438	$	12,316
Mar 31, 2004	$	12,492	$	12,335

Performance figures assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the Index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund’s past performance is no guarantee of future results.

8 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

FUND ALLOCATION BY COUNTRY

(% of Net Assets)

[GRAPHIC APPEARS HERE]

Argentina	0.38	%
Brazil	1.16	%
Canada	7.24	%
China	0.88	%
France	8.54	%
Italy	4.79	%
Japan	0.86	%
Netherlands	6.19	%
Norway	1.90	%
Spain	2.11	%
United Kingdom	20.15	%
United States	45.60	%
Short-Term and Net Other Assets	0.20	%

The iShares S&P Global Energy Sector Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Standard & Poor’s Global Energy Sector Index (the “Index”). For the one-year period ending March 31, 2004 (the “reporting period”), the Fund returned 36.55%, compared to a return of 36.30% by the Index.

Global equity markets generally posted healthy gains during the reporting period. In many regions, signs of economic growth began to emerge. The U.S. experienced healthier gross domestic product growth levels throughout the reporting period. The more optimistic economic outlook in the U.S., in turn, led to increased export demand, fueling growth in Europe and Asia.

Although oil prices finished the year at roughly the same level that they had begun, they experienced considerable volatility during the reporting period. Early in the reporting period, the war in Iraq elevated oil prices to nearly $40 a barrel as it created instability in the region. By summer, however, oil prices had begun to drift downward as a result of resumed production in Iraq and higher inventories in the U.S. and Europe, as well as increased production in Russia. By August, the price of crude oil dipped to just over $25 per barrel. Fearing further price erosion and rising inventories, the Organization of Petroleum Exporting Countries (“OPEC”) decided to cut production by 3%-5%, beginning in November. Driven up by output constraints and a cold winter in the Northeastern United States oil prices topped $38 per barrel in March.

Nine of the Fund’s ten largest holdings posted gains during the reporting period. Benefiting from higher oil prices, exploration and service company Schlumberger Ltd. (2.89% of the net assets of the Fund as of March 31, 2004) was the best performer among the Fund’s ten largest holdings. The large, diversified oil companies also performed well: ChevronTexaco Corp. (4.83% of the net assets of the Fund as of March 31, 2004) and BG Group PLC (2.96% of the net assets of the Fund as of March 31, 2004) both logged solid gains during the reporting period.

Italian gas company Eni SpA (4.79% of the Fund’s net assets as of March 31, 2004) received a boost from news that the government would combine it with the national electric company into a separately traded company that would be sold to investors.

The only holding among the Fund’s top ten to post a loss during the reporting period was Shell Transport & Trading Co. PLC (4.28% of the net assets of the Fund as of March 31, 2004).

MANAGERS’ DISCUSSION & ANALYSIS 9

Managers’ Discussion & Analysis

iSHARES^® S&P GLOBAL FINANCIALS SECTOR INDEX FUND

Performance as of 3/31/04

Average Annual Total Returns						Cumulative Total Returns
Year Ended 3/31/04			Inception to 3/31/04			Inception to 3/31/04
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
54.23%	54.90%	55.75%	8.92%	9.40%	9.85%	22.59%	23.89%	25.06%

Total returns for the periods since inception are calculated from the inception date of the Fund (11/12/01). “Average annual total returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative total returns” represent the total change in value of an investment over the periods indicated.

Certain sectors and markets performed exceptionally well based on market conditions during the one-year period. Investors should not expect that such exceptional returns will be repeated.

A fund’s per share net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which the shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since fund shares typically do not trade in the secondary market until several days after fund inception, for the period from inception to the first day of secondary market trading in fund shares (11/16/01), the NAV of the Fund is used as a proxy for secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the Index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. The returns shown in the tables above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. 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. The Fund’s past performance is no guarantee of future results.

GROWTH OF $10,000 INVESTMENT

SINCE INCEPTION AT NET ASSET VALUE

[GRAPHIC APPEARS HERE]

	iSHARES S&P GLOBAL FINANCIALS SECTOR INDEX FUND		STANDARD & POOR’S GLOBAL FINANCIALS SECTOR INDEX
Nov 12, 2001	$	10,000	$	10,000
Nov 30, 2001	$	10,124	$	10,135
Dec 31, 2001	$	10,273	$	10,291
Jan 31, 2002	$	9,971	$	9,989
Feb 28, 2002	$	9,789	$	9,849
Mar 31, 2002	$	10,464	$	10,505
Apr 30, 2002	$	10,497	$	10,554
May 31, 2002	$	10,575	$	10,631
Jun 30, 2002	$	9,998	$	10,087
Jul 31, 2002	$	9,041	$	9,089
Aug 31, 2002	$	9,149	$	9,216
Sep 30, 2002	$	7,881	$	7,921
Oct 31, 2002	$	8,644	$	8,709
Nov 30, 2002	$	9,080	$	9,156
Dec 31, 2002	$	8,555	$	8,631
Jan 31, 2003	$	8,267	$	8,355
Feb 28, 2003	$	8,102	$	8,187
Mar 31, 2003	$	7,948	$	8,030
Apr 30, 2003	$	9,016	$	9,126
May 31, 2003	$	9,533	$	9,653
Jun 30, 2003	$	9,694	$	9,830
Jul 31, 2003	$	10,133	$	10,264
Aug 31, 2003	$	10,028	$	10,163
Sep 30, 2003	$	10,229	$	10,382
Oct 31, 2003	$	11,036	$	11,197
Nov 30, 2003	$	11,114	$	11,292
Dec 31, 2003	$	11,791	$	11,976
Jan 31, 2004	$	12,076	$	12,307
Feb 29, 2004	$	12,358	$	12,622
Mar 31, 2004	$	12,259	$	12,507

Performance figures assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the Index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund’s past performance is no guarantee of future results.

10 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

FUND ALLOCATION BY SECTOR

(% of Net Assets)

[GRAPHIC APPEARS HERE]

Banks	49.29	%
Diversified Financials	27.02	%
Insurance	19.62	%
Real Estate	3.61	%
Short-Term and Net Other Assets	0.46	%

The iShares S&P Global Financials Sector Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Standard & Poor’s Global Financials Sector Index (the “Index”). For the one-year period ended March 31, 2004 (the “reporting period”), the Fund returned 54.23%, compared to a return of 55.75% by the Index.

Global markets rebounded during the reporting period. In the U.S., gross domestic product (“GDP”) growth figures for each successive quarter during the reporting period revealed a strengthening economy. Corporate earnings levels also improved over the course of the reporting period. In Japan, strong export levels continued to fuel economic growth. Fourth quarter GDP growth was reported at an annual rate of 7.0%, its highest level in 13 years. Europe also experienced growth, due to a large extent to improved conditions in the U.S. and a corresponding increase in export demand.

Financial companies around the world generally benefited from the improved economic conditions. Investment banks, in particular, were buoyed by increased equity valuations and renewed investor interest in financial markets. In addition, lower interest rates and corresponding high levels of refinance activity continued to be a boon to lenders.

All of the Fund’s ten largest holdings posted double-digit gains during the reporting period. J.P. Morgan Chase & Co. (1.93% of the net assets of the Fund as of March 31, 2004), which had suffered losses in prior reporting periods, rebounded strongly during the one-year period, as investor activity increased and valuations improved.

UBS AG (whose registered shares were 1.98% of the Fund’s net assets as of March 31, 2004) also posted healthy gains, buoyed by the improvement in the investment climate and the low interest-rate environment. The more positive conditions also helped to fuel gains for Citigroup Inc., the largest holding at 6.01% of the net assets of the Fund, and American Express Co. (1.51% of the net assets of the Fund as of March 31, 2004). Fannie Mae (1.63% of the net assets of the Fund as of March 31, 2004), with more moderate gains during the reporting period, was the weakest performer among the Fund’s ten largest holdings.

MANAGERS’ DISCUSSION & ANALYSIS 11

Managers’ Discussion & Analysis

iSHARES^® S&P GLOBAL HEALTHCARE SECTOR INDEX FUND

Performance as of 3/31/04

Average Annual Total Returns						Cumulative Total Returns
Year Ended 3/31/04			Inception to 3/31/04			Inception to 3/31/04
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
17.98%	18.13%	18.80%	(1.95)%	(1.85)%	(1.50)%	(4.57)%	(4.35)%	(3.52)%

Total returns for the periods since inception are calculated from the inception date of the Fund (11/13/01). “Average annual total returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative total returns” represent the total change in value of an investment over the periods indicated.

A fund’s per share net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which the shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since fund shares typically do not trade in the secondary market until several days after fund inception, for the period from inception to the first day of secondary market trading in fund shares (11/21/01), the NAV of the Fund is used as a proxy for secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the Index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. The returns shown in the tables above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. 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. The Fund’s past performance is no guarantee of future results.

GROWTH OF $10,000 INVESTMENT

SINCE INCEPTION AT NET ASSET VALUE

[GRAPHIC APPEARS HERE]

	iSHARES S&P GLOBAL HEALTHCARE SECTOR INDEX FUND		STANDARD & POOR’S GLOBAL HEALTHCARE SECTOR INDEX
Nov 13, 2001	$	10,000	$	10,000
Nov 30, 2001	$	10,176	$	10,179
Dec 31, 2001	$	9,964	$	9,972
Jan 31, 2002	$	9,736	$	9,735
Feb 28, 2002	$	9,894	$	9,906
Mar 31, 2002	$	9,908	$	9,924
Apr 30, 2002	$	9,506	$	9,521
May 31, 2002	$	9,274	$	9,286
Jun 30, 2002	$	8,670	$	8,695
Jul 31, 2002	$	8,312	$	8,314
Aug 31, 2002	$	8,300	$	8,315
Sep 30, 2002	$	7,862	$	7,866
Oct 31, 2002	$	8,282	$	8,293
Nov 30, 2002	$	8,413	$	8,430
Dec 31, 2002	$	8,182	$	8,203
Jan 31, 2003	$	8,058	$	8,091
Feb 28, 2003	$	7,861	$	7,894
Mar 31, 2003	$	8,089	$	8,121
Apr 30, 2003	$	8,501	$	8,539
May 31, 2003	$	8,706	$	8,752
Jun 30, 2003	$	8,977	$	9,036
Jul 31, 2003	$	8,822	$	8,878
Aug 31, 2003	$	8,530	$	8,585
Sep 30, 2003	$	8,725	$	8,789
Oct 31, 2003	$	8,832	$	8,894
Nov 30, 2003	$	9,080	$	9,155
Dec 31, 2003	$	9,633	$	9,710
Jan 31, 2004	$	9,811	$	9,907
Feb 29, 2004	$	9,882	$	9,994
Mar 31, 2004	$	9,543	$	9,647

Performance figures assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the Index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund’s past performance is no guarantee of future results.

12 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

FUND ALLOCATION BY SECTOR

(% of Net Assets)

[GRAPHIC APPEARS HERE]

Short-Term and Net Other Assets	0.22	%
Health Care Equipment & Services	23.24	%
Pharmaceuticals & Biotechnology	76.54	%

The iShares S&P Global Healthcare Sector Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Standard & Poor’s Global Healthcare Sector Index (the “Index”). For the one-year period ended March 31, 2004 (the “reporting period”), the Fund returned 17.98%, compared to a return of 18.80% by the Index.

Global equity markets rebounded during the reporting period. In the U.S., gross domestic product (“GDP”) levels grew throughout the year, and corporate earnings levels improved. Unemployment rates remained a problem for much of the reporting period, rising to a nine-year high before declining in the final few months.

Japan enjoyed increased export levels, largely due to improving economic conditions in the U.S. and, to a lesser extent, burgeoning demand from China. For the fourth quarter of 2003, Japan delivered GDP annual growth of 7%, its highest level in 13 years.

In Europe, markets also rebounded, thanks to increased export levels to both the U.S. and other European neighbors. For those countries in the European Monetary Union, a strong euro relative to the U.S. dollar posed a concern about export growth, but did not appear to hinder export demand during the reporting period. For U.S.-based investors, the strong euro boosted investment returns.

Health care companies posted mixed results for the reporting period. Several key pharmaceutical companies faced expirations on their patents and in turn, the threat of competition from generic drug makers. However, several pharmaceutical companies saw their share price rise during the reporting period on positive news related to drugs in their pipelines.

Swiss pharmaceutical company Roche Holding AG Genusschein (3.48% of the net assets of the Fund as of March 31, 2004) was the strongest performer among the Fund’s ten largest holdings. Switzerland’s largest pharmaceutical company, Novartis AG (5.41% of the net assets of the Fund as of March 31, 2004), however, finished the reporting period with a more modest gain, after losing ground on news that it was considering a merger with Aventis SA (2.72% of the Fund’s net assets as of March 31, 2004), France’s largest drugmaker.

On the heels of its success with its popular drug Nexium, AstraZeneca PLC (4.00% of the net assets of the Fund as of March 31, 2004) received favorable news from a study on its blood-thinning drug Exanta, and posted positive returns for the reporting period. GlaxoSmithKline PLC (6.00% of the net assets of the Fund as of March 31, 2004) lost ground for the reporting period, despite FDA approval of its antidepressant drug Paxil for treatment of premenstrual dysphoric disorder.

MANAGERS’ DISCUSSION & ANALYSIS 13

Managers’ Discussion & Analysis

iSHARES^® S&P GLOBAL TECHNOLOGY SECTOR INDEX FUND

Performance as of 3/31/04

Average Annual Total Returns						Cumulative Total Returns
Year Ended 3/31/04			Inception to 3/31/04			Inception to 3/31/04
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
52.39%	51.50%	52.95%	(1.76)%	(1.76)%	(0.94)%	(4.13)%	(4.15)%	(2.23)%

Total returns for the periods since inception are calculated from the inception date of the Fund (11/12/01). “Average annual total returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative total returns” represent the total change in value of an investment over the periods indicated.

Certain sectors and markets performed exceptionally well based on market conditions during the one-year period. Investors should not expect that such exceptional returns will be repeated.

A fund’s per share net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which the shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since fund shares typically do not trade in the secondary market until several days after fund inception, for the period from inception to the first day of secondary market trading in fund shares (11/16/01), the NAV of the Fund is used as a proxy for secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the Index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. The returns shown in the tables above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. 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. The Fund’s past performance is no guarantee of future results.

GROWTH OF $10,000 INVESTMENT

SINCE INCEPTION AT NET ASSET VALUE

[GRAPHIC APPEARS HERE]

	iSHARES S&P GLOBAL TECHNOLOGY SECTOR INDEX FUND		STANDARD & POOR’S GLOBAL INFORMATION TECHNOLOGY SECTOR INDEX
Nov 12, 2001	$	10,000	$	10,000
Nov 30, 2001	$	10,485	$	10,484
Dec 31, 2001	$	10,368	$	10,380
Jan 31, 2002	$	10,312	$	10,337
Feb 28, 2002	$	9,148	$	9,203
Mar 31, 2002	$	9,759	$	9,790
Apr 30, 2002	$	8,605	$	8,652
May 31, 2002	$	8,225	$	8,285
Jun 30, 2002	$	7,287	$	7,365
Jul 31, 2002	$	6,571	$	6,662
Aug 31, 2002	$	6,492	$	6,590
Sep 30, 2002	$	5,377	$	5,469
Oct 31, 2002	$	6,497	$	6,580
Nov 30, 2002	$	7,539	$	7,628
Dec 31, 2002	$	6,437	$	6,527
Jan 31, 2003	$	6,317	$	6,422
Feb 28, 2003	$	6,398	$	6,489
Mar 31, 2003	$	6,291	$	6,393
Apr 30, 2003	$	6,911	$	7,009
May 31, 2003	$	7,515	$	7,615
Jun 30, 2003	$	7,562	$	7,673
Jul 31, 2003	$	8,020	$	8,143
Aug 31, 2003	$	8,547	$	8,672
Sep 30, 2003	$	8,464	$	8,609
Oct 31, 2003	$	9,195	$	9,348
Nov 30, 2003	$	9,265	$	9,419
Dec 31, 2003	$	9,464	$	9,624
Jan 31, 2004	$	9,979	$	10,165
Feb 29, 2004	$	9,754	$	9,945
Mar 31, 2004	$	9,586	$	9,777

Performance figures assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the Index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund’s past performance is no guarantee of future results.

14 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

FUND ALLOCATION BY SECTOR

(% of Net Assets)

[GRAPHIC APPEARS HERE]

Semiconductors & Semiconductor Equipment	23.46	%
Short-Term and Net Other Assets	0.14	%
Software & Services	27.72	%
Technology Hardware & Equipment	48.68	%

The iShares S&P Global Technology Sector Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Standard & Poor’s Global Information Technology Sector Index (the “Index”). For the one-year period ended March 31, 2004 (the “reporting period”), the Fund returned 52.39%, compared to a return of 52.95% by the Index.

Global equity markets rebounded during the reporting period. In the U.S., gross domestic product (“GDP”) growth levels throughout the reporting period portrayed economic strength. Corporate earnings announcements provided additional encouragement in the form of increased earnings levels and stabilizing earnings expectations. An improving U.S. economy also translated into increased commerce for many European and Asian companies. In the fourth quarter, Japan enjoyed its highest GDP growth level in 13 years, in large part due to its exporters.

Information technology stocks were one of the market leaders during the reporting period. Both global PC sales and global chip sales levels climbed throughout the period, spurring a rally in the depressed technology sector. In the U.S., improving economic conditions and renewed investor interest fueled a resurgence in the technology sector. U.S. demand for technology-related exports, in turn, helped drive returns for some Asian and European-based technology and telecommunications companies.

All of the Fund’s ten largest holdings posted gains during the reporting period. Korea’s Samsung Electronics Co. Ltd. (2.68% of the net assets of the Fund as of March 31, 2004) led the way with strong gains. The company benefited from increased export demand, primarily from the U.S.

U.S.-based technology companies generally rebounded, buoyed by the improving economic environment. QUALCOMM Inc. (2.18% of the net assets of the Fund as of March 31, 2004), Cisco Systems Inc. (6.74% of the net assets of the Fund as of March 31, 2004), and Intel Corp. (7.35% of the net assets of the Fund as of March 31, 2004) all performed well during the reporting period. Finland’s Nokia OYJ (4.08% of the net assets of the Fund as of March 31, 2004) rebounded along with many other telecommunications-related companies worldwide. The largest holding at 11.27% of the net assets of the Fund, Microsoft Corp. posted only modest gains, making it the poorest performer among the ten largest holdings.

MANAGERS’ DISCUSSION & ANALYSIS 15

Managers’ Discussion & Analysis

iSHARES^® S&P GLOBAL TELECOMMUNICATIONS SECTOR INDEX FUND

Performance as of 3/31/04

Average Annual Total Returns						Cumulative Total Returns
Year Ended 3/31/04			Inception to 3/31/04			Inception to 3/31/04
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
40.06%	40.58%	40.88%	(2.60)%	(2.09)%	(2.03)%	(6.09)%	(4.90)%	(4.77)%

Total returns for the periods since inception are calculated from the inception date of the Fund (11/12/01). “Average annual total returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative total returns” represent the total change in value of an investment over the periods indicated.

A fund’s per share net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which the shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since fund shares typically do not trade in the secondary market until several days after fund inception, for the period from inception to the first day of secondary market trading in fund shares (11/16/01), the NAV of the Fund is used as a proxy for secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the Index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. The returns shown in the tables above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. 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. The Fund’s past performance is no guarantee of future results.

GROWTH OF $10,000 INVESTMENT

SINCE INCEPTION AT NET ASSET VALUE

[GRAPHIC APPEARS HERE]

	iSHARES S&P GLOBAL TELECOMMUNICATIONS SECTOR INDEX FUND		STANDARD & POOR’S GLOBAL TELECOMMUNICATIONS SECTOR INDEX
Nov 12, 2001	$	10,000	$	10,000
Nov 30, 2001	$	10,197	$	10,207
Dec 31, 2001	$	10,196	$	10,217
Jan 31, 2002	$	9,190	$	9,204
Feb 28, 2002	$	8,692	$	8,731
Mar 31, 2002	$	8,850	$	8,862
Apr 30, 2002	$	7,848	$	7,863
May 31, 2002	$	7,948	$	7,945
Jun 30, 2002	$	7,094	$	7,108
Jul 31, 2002	$	6,719	$	6,725
Aug 31, 2002	$	6,752	$	6,777
Sep 30, 2002	$	5,714	$	5,734
Oct 31, 2002	$	7,023	$	7,054
Nov 30, 2002	$	7,806	$	7,833
Dec 31, 2002	$	7,325	$	7,362
Jan 31, 2003	$	7,167	$	7,210
Feb 28, 2003	$	6,799	$	6,851
Mar 31, 2003	$	6,705	$	6,761
Apr 30, 2003	$	7,464	$	7,531
May 31, 2003	$	8,026	$	8,093
Jun 30, 2003	$	8,100	$	8,189
Jul 31, 2003	$	7,920	$	7,988
Aug 31, 2003	$	7,894	$	7,964
Sep 30, 2003	$	7,926	$	8,006
Oct 31, 2003	$	8,273	$	8,340
Nov 30, 2003	$	8,534	$	8,620
Dec 31, 2003	$	9,189	$	9,282
Jan 31, 2004	$	9,474	$	9,588
Feb 29, 2004	$	9,599	$	9,736
Mar 31, 2004	$	9,391	$	9,525

Performance figures assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the Index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund’s past performance is no guarantee of future results.

16 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

TOP FUND ALLOCATIONS BY COUNTRY

(% of Net Assets)

[GRAPHIC APPEARS HERE]

Australia	2.16	%
Canada	2.46	%
France	3.44	%
Germany	4.19	%
Hong Kong	1.67	%
Italy	4.64	%
Japan	8.85	%
Mexico	2.53	%
Netherlands	1.65	%
Other Countries	4.00	%
Portugal	1.25	%
Spain	6.77	%
United Kingdom	20.38	%
United States	35.76	%
Short-Term and Net Other Assets	0.25	%

The iShares S&P Global Telecommunications Sector Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Standard & Poor’s Global Telecommunications Sector Index (the “Index”). For the one-year period ended March 31, 2004 (the “reporting period”), the Fund returned 40.06%, compared to a return of 40.88% by the Index.

Markets around the world rebounded during the reporting period, driven by improving economic conditions. Throughout the period, the U.S. saw increases in gross domestic product (“GDP”) growth levels as well as corporate earnings levels. Japan also saw an unexpectedly strong rise in GDP growth, thanks largely to export growth. After struggling with recession for more than a decade, Japan’s fourth quarter GDP annual growth rate was the strongest in 13 years. Europe began to experience some economic growth, albeit more moderate, and benefited from export demand from the improved U.S. economy.

As countries around the world experienced an increase in economic activity, global telecommunications stocks generally responded to the improved conditions. In some cases, the growth came from a renewed interest in investment activity. Investors generally appeared more willing to return to more growth-oriented securities again, and, for many, the depressed share prices provided additional incentive.

All of the Fund’s ten largest holdings posted gains during the reporting period. AT&T Wireless Services Inc. (3.62% of the net assets of the Fund as of March 31, 2004) led the way with triple-digit gains for the reporting period. In February, Cingular Wireless, the United States’ second-largest wireless carrier, announced plans to acquire AT&T Wireless, currently the nation’s third-largest wireless carrier, which would transform the two companies into the largest wireless carrier in the U.S. with a subscriber base of 46 million.

Spain’s Telefonica, S.A. (6.77% of the net assets of the Fund as of March 31, 2004), Japan’s Nippon Telegraph & Telephone Corp. (4.92% of the net assets of the Fund as of March 31, 2004), and Germany’s Deutsche Telekom AG (4.19% of the net assets of the Fund as of March 31, 2004) all benefited from increased economic activity and higher demand in their respective countries. The largest holding at 15.53% of the Fund’s net assets as of March 31, 2004, UK-based Vodafone Group PLC posted more moderate gains.

MANAGERS’ DISCUSSION & ANALYSIS 17

Managers’ Discussion & Analysis

iSHARES^® S&P EUROPE 350 INDEX FUND

Performance as of 3/31/04

Average Annual Total Returns						Cumulative Total Returns
Year Ended 3/31/04			Inception to 3/31/04			Inception to 3/31/04
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
52.85%	53.94%	54.61%	(4.00)%	(3.80)%	(3.34)%	(13.98)%	(13.31)%	(11.75)%

Total returns for the periods since inception are calculated from the inception date of the Fund (7/25/00). “Average annual total returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative total returns” represent the total change in value of an investment over the periods indicated.

Certain sectors and markets performed exceptionally well based on market conditions during the one-year period. Investors should not expect that such exceptional returns will be repeated.

A fund’s per share net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which the shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since fund shares typically do not trade in the secondary market until several days after fund inception, for the period from inception to the first day of secondary market trading in fund shares (7/28/00), the NAV of the Fund is used as a proxy for secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the Index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. The returns shown in the tables above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. 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. The Fund’s past performance is no guarantee of future results.

GROWTH OF $10,000 INVESTMENT

SINCE INCEPTION AT NET ASSET VALUE

[GRAPHIC APPEARS HERE]

	iSHARES S&P EUROPE 350 INDEX FUND		STANDARD & POOR’S EUROPE 350 INDEX
Jul 25, 2000	$	10,000	$	10,000
Jul 31, 2000	$	9,764	$	9,772
Aug 31, 2000	$	9,732	$	9,759
Sep 30, 2000	$	9,269	$	9,289
Oct 31, 2000	$	9,206	$	9,266
Nov 30, 2000	$	8,849	$	8,929
Dec 31, 2000	$	9,491	$	9,542
Jan 31, 2001	$	9,460	$	9,545
Feb 28, 2001	$	8,660	$	8,736
Mar 31, 2001	$	7,990	$	8,026
Apr 30, 2001	$	8,595	$	8,712
May 31, 2001	$	8,225	$	8,346
Jun 30, 2001	$	7,917	$	8,017
Jul 31, 2001	$	7,889	$	7,970
Aug 31, 2001	$	7,697	$	7,801
Sep 30, 2001	$	6,937	$	6,999
Oct 31, 2001	$	7,139	$	7,211
Nov 30, 2001	$	7,390	$	7,471
Dec 31, 2001	$	7,588	$	7,674
Jan 31, 2002	$	7,198	$	7,257
Feb 28, 2002	$	7,186	$	7,269
Mar 31, 2002	$	7,578	$	7,648
Apr 30, 2002	$	7,524	$	7,605
May 31, 2002	$	7,533	$	7,592
Jun 30, 2002	$	7,264	$	7,368
Jul 31, 2002	$	6,464	$	6,530
Aug 31, 2002	$	6,464	$	6,549
Sep 30, 2002	$	5,601	$	5,650
Oct 31, 2002	$	6,152	$	6,229
Nov 30, 2002	$	6,463	$	6,559
Dec 31, 2002	$	6,213	$	6,300
Jan 31, 2003	$	5,911	$	5,996
Feb 28, 2003	$	5,720	$	5,815
Mar 31, 2003	$	5,628	$	5,708
Apr 30, 2003	$	6,388	$	6,503
May 31, 2003	$	6,811	$	6,942
Jun 30, 2003	$	6,871	$	7,010
Jul 31, 2003	$	7,009	$	7,143
Aug 31, 2003	$	6,982	$	7,121
Sep 30, 2003	$	7,112	$	7,272
Oct 31, 2003	$	7,598	$	7,741
Nov 30, 2003	$	7,912	$	8,097
Dec 31, 2003	$	8,556	$	8,739
Jan 31, 2004	$	8,650	$	8,872
Feb 29, 2004	$	8,903	$	9,135
Mar 31, 2004	$	8,602	$	8,825

Performance figures assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the Index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund’s past performance is no guarantee of future results.

18 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

FUND ALLOCATION BY SECTOR

(% of Net Assets)

[GRAPHIC APPEARS HERE]

Consumer Discretionary	9.95	%
Consumer Staples	9.99	%
Energy	11.15	%
Financials	27.96	%
Health Care	9.98	%
Industrials	6.18	%
Information Technology	4.82	%
Materials	5.83	%
Short-Term and Net Other Assets	0.62	%
Telecommunication Services	8.83	%
Utilities	4.69	%

The iShares S&P Europe 350 Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Standard & Poor’s Europe 350 Index (the “Index”). The Index measures the equity performance of leading companies in the United Kingdom and 15 countries in the Euro Zone (which includes the European Monetary Union countries plus Denmark, Norway, Sweden and Switzerland). For the one-year period ended March 31, 2004 (the “reporting period”), the Fund returned 52.85%, compared to a return of 54.61% by the Index.

The Fund’s underperformance for the reporting period, relative to the Index, was due in part to the negative effect of Fund expenses. Uninvested assets such as cash, held by the Fund in a rising market also had a negative impact on the Fund’s return. In addition, a difference in the methodology regarding the exchange rates used by the Fund and the Index, contributed to the Fund’s underperformance of the Index.

European markets saw signs of recovery during the reporting period. Higher gross domestic product (“GDP”) growth levels in the U.S. and Asia meant increased demand for many European markets, which also began to experience somewhat higher GDP growth and increased manufacturing levels. In some markets, business confidence levels were unexpectedly high.

The nagging problem for Europe, particularly those countries in the European Monetary Union, remained the strong euro, which continued to rise sharply against the U.S. dollar, making European exports more expensive and reducing the value of sales and earnings in U.S. dollar-denominated markets. So far, however, demand from the U.S has been sufficient to compensate for the increase in the value of the euro. For U.S.-based investors, the weaker U.S. dollar boosted investment returns in these countries.

Among the Fund’s ten largest holdings, performance was mostly positive. UBS AG (1.65% of the Fund’s net assets as of March 31, 2004) participated in a rebound for financial companies around the world, as market valuations improved and investor interest was renewed.

Nokia OYJ (1.88% of the net assets of the Fund as of March 31, 2004) rose along with telecommunications globally, which also experienced a rebound during the reporting period.

Other strong performers during the reporting period included Total SA (2.29% of the net assets of the Fund as of March 31, 2004), HSBC Holdings PLC (3.13% of the net assets of the Fund as of March 31, 2004), and Nestle SA (1.99% of the net assets of the Fund as of March 31, 2004).

The sole negative performance among the Fund’s ten largest holdings came from GlaxoSmithKline PLC (2.24% of the Fund’s net assets as of March 31, 2004), which declined, despite FDA approval of its antidepressant Paxil for treatment of premenstrual dysphoric disorder.

MANAGERS’ DISCUSSION & ANALYSIS 19

Managers’ Discussion & Analysis

iSHARES^® S&P LATIN AMERICA 40 INDEX FUND

Performance as of 3/31/04

Average Annual Total Returns						Cumulative Total Returns
Year Ended 3/31/04			Inception to 3/31/04			Inception to 3/31/04
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
77.07%	74.66%	80.07%	20.18%	20.29%	20.77%	56.40%	56.74%	58.18%

Total returns for the periods since inception are calculated from the inception date of the Fund (10/25/01). “Average annual total returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative total returns” represent the total change in value of an investment over the periods indicated.

Certain sectors and markets performed exceptionally well based on market conditions during the one-year period. Investors should not expect that such exceptional returns will be repeated.

A fund’s per share net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which the shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since fund shares typically do not trade in the secondary market until several days after fund inception, for the period from inception to the first day of secondary market trading in fund shares (10/26/01), the NAV of the Fund is used as a proxy for secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the Index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. The returns shown in the tables above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. 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. The Fund’s past performance is no guarantee of future results.

GROWTH OF $10,000 INVESTMENT

SINCE INCEPTION AT NET ASSET VALUE

[GRAPHIC APPEARS HERE]

	iSHARES S&P LATIN AMERICA 40 INDEX FUND		STANDARD & POOR’S LATIN AMERICA 40 INDEX
Oct 25, 2001	$	10,000	$	10,000
Oct 31, 2001	$	9,766	$	9,748
Nov 30, 2001	$	10,547	$	10,575
Dec 31, 2001	$	11,563	$	11,668
Jan 31, 2002	$	11,807	$	11,833
Feb 28, 2002	$	12,096	$	12,140
Mar 31, 2002	$	12,716	$	12,770
Apr 30, 2002	$	12,500	$	12,566
May 31, 2002	$	11,531	$	11,370
Jun 30, 2002	$	9,949	$	9,803
Jul 31, 2002	$	8,561	$	8,367
Aug 31, 2002	$	9,157	$	9,004
Sep 30, 2002	$	7,602	$	7,514
Oct 31, 2002	$	8,564	$	8,434
Nov 30, 2002	$	8,837	$	8,765
Dec 31, 2002	$	9,023	$	8,949
Jan 31, 2003	$	8,614	$	8,521
Feb 28, 2003	$	8,348	$	8,259
Mar 31, 2003	$	8,832	$	8,787
Apr 30, 2003	$	10,346	$	10,316
May 31, 2003	$	10,627	$	10,597
Jun 30, 2003	$	10,932	$	10,930
Jul 31, 2003	$	11,361	$	11,328
Aug 31, 2003	$	11,848	$	11,903
Sep 30, 2003	$	12,213	$	12,337
Oct 31, 2003	$	12,821	$	12,970
Nov 30, 2003	$	13,342	$	13,515
Dec 31, 2003	$	14,628	$	14,831
Jan 31, 2004	$	14,844	$	15,021
Feb 29, 2004	$	15,506	$	15,703
Mar 31, 2004	$	15,639	$	15,826

Performance figures assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the Index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund’s past performance is no guarantee of future results.

20 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

FUND ALLOCATION BY SECTOR

(% of Net Assets)

[GRAPHIC APPEARS HERE]

Consumer Discretionary	3.60	%
Consumer Staples	11.27	%
Energy	12.62	%
Financials	12.53	%
Industrials	4.86	%
Materials	22.97	%
Short-Term and Net Other Assets	0.58	%
Telecommunication Services	26.86	%
Utilities	4.71	%

The iShares S&P Latin America 40 Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Standard & Poor’s Latin America 40 Index (the “Index”). The Index is comprised of highly liquid securities from major economic sectors of the Mexican and South American equity markets. Companies from Mexico, Brazil, Argentina, and Chile are represented in the Index. For the one-year period ended March 31, 2004 (the “reporting period”), the Fund returned 77.07%, compared with a return of 80.07% by the Index.

The Fund generally invests in American Depositary Receipts (“ADRs”) instead of directly holding stocks of Argentinian and Chilean companies. The primary contributing factor to the Fund’s underperformance for the reporting period, relative to the Index, was due to three Chilean Index constituents that were not available as ADRs, and therefore, not held by the Fund. Combined, these three securities represented almost 6% of the Index and for the reporting period, they outperformed the benchmark. This had a significant negative impact on the Fund’s performance, relative to the Index. Also contributing to the Fund’s underperformance of the Index was the negative effect of Fund expenses.

The Index rebounded sharply during the reporting period. Like many global economies, Latin American countries depend on exports to the U.S. for much of their economic livelihood. But, because of their lower labor costs and raw materials, emerging markets, such as those represented by the Index, have tended to benefit more from U.S. economic recovery than have their more developed counterparts.

Mexico, which is more dependent on exports to the U.S. than are any of its neighbors, has seen its economic climate move in sync with that of the U.S., and probably benefited the most of all Latin American countries from improving U.S. economic conditions. With its export levels so heavily skewed toward the U.S., however, it began to face competition from other emerging market countries, such as China.

Brazil’s stock market gained amid prospects for accelerating economic expansion. During the course of the reporting period, the central bank cut its benchmark lending rate a full 5.5%, from 22.0% to 16.5%. President Luiz Inacio Lula da Silva continued with stimulus measures to spur economic growth: in September, he passed a bill aimed at overhauling the tax system, including tax breaks for investment. In November, he introduced a bill to revamp the power industry and to let supply and demand determine electricity prices.

Argentina, whose government focused on boosting domestic consumption at the expense of the demands of foreign creditors during the reporting period, has emerged from the depths of its economic problems to see reduced unemployment levels, lower inflation rates, and growing gross domestic product levels. And, after threatening that it might not, in March Argentina paid $3.1 billion in interest and principal it owed the International Monetary Fund (the “IMF”), sidestepping the largest default in the history of the IMF.

Because Chile’s economy is heavily dependent on commodity exports, it has benefited from improved conditions in the U.S, its leading export partner. The enactment of a Free Trades Agreement with the U.S., the first for a Latin American country, should help export levels continue to grow.

Among the ten largest Fund holdings, performance was generally strong. America Movil SA de CV Series L (12.33% of the net assets of the Fund as of March 31, 2004) delivered triple-digit gains during the reporting period. The Mexican company is the largest cellular phone operator in Latin America and the second largest operator in Brazil. However, its sister company and the largest telephone company in Mexico, Telefonos de Mexico SA de CV (its Series L ADR shares were 10.44% of the Fund’s net assets as of March 31, 2004) posted more moderate gains.

Brazilian oil company Petroleo Brasileiro SA (its ADR shares were 10.15% of the net assets of the Fund as of March 31, 2004) enjoyed strong gains during the reporting period, due largely to increased exports to the U.S. Mexican cement company Cemex SA de CV (its Series CPO shares were 8.11% of the net assets of the Fund as of March 31, 2004) also benefited from increased export levels.

MANAGERS’ DISCUSSION & ANALYSIS 21

Managers’ Discussion & Analysis

iSHARES^® S&P/TOPIX 150 INDEX FUND

Performance as of 3/31/04

Average Annual Total Returns						Cumulative Total Returns
Year Ended 3/31/04			Inception to 3/31/04			Inception to 3/31/04
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
65.79%	65.02%	67.63%	9.22%	9.24%	9.65%	23.99%	24.04%	25.21%

Total returns for the periods since inception are calculated from the inception date of the Fund (10/23/01). “Average annual total returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative total returns” represent the total change in value of an investment over the periods indicated.

Certain sectors and markets performed exceptionally well based on market conditions during the one-year period. Investors should not expect that such exceptional returns will be repeated.

A fund’s per share net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which the shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since fund shares typically do not trade in the secondary market until several days after fund inception, for the period from inception to the first day of secondary market trading in fund shares (10/26/01), the NAV of the Fund is used as a proxy for secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the Index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. The returns shown in the tables above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. 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. The Fund’s past performance is no guarantee of future results.

GROWTH OF $10,000 INVESTMENT

SINCE INCEPTION AT NET ASSET VALUE

[GRAPHIC APPEARS HERE]

	iSHARES S&P/TOPIX 150 INDEX FUND		STANDARD & POOR’S/TOKYO STOCK PRICE 150 INDEX
Oct 23, 2001	$	10,000	$	10,000
Oct 31, 2001	$	9,585	$	9,620
Nov 30, 2001	$	9,727	$	9,641
Dec 31, 2001	$	9,098	$	9,069
Jan 31, 2002	$	8,406	$	8,459
Feb 28, 2002	$	8,767	$	8,754
Mar 31, 2002	$	9,509	$	9,522
Apr 30, 2002	$	9,806	$	9,856
May 31, 2002	$	10,381	$	10,405
Jun 30, 2002	$	9,829	$	9,868
Jul 31, 2002	$	9,114	$	9,144
Aug 31, 2002	$	9,002	$	9,064
Sep 30, 2002	$	8,566	$	8,608
Oct 31, 2002	$	8,027	$	8,055
Nov 30, 2002	$	8,384	$	8,441
Dec 31, 2002	$	8,159	$	8,118
Jan 31, 2003	$	7,822	$	7,909
Feb 28, 2003	$	7,849	$	7,923
Mar 31, 2003	$	7,478	$	7,471
Apr 30, 2003	$	7,384	$	7,413
May 31, 2003	$	7,734	$	7,860
Jun 30, 2003	$	8,322	$	8,390
Jul 31, 2003	$	8,698	$	8,792
Aug 31, 2003	$	9,564	$	9,600
Sep 30, 2003	$	10,037	$	10,182
Oct 31, 2003	$	10,422	$	10,607
Nov 30, 2003	$	10,155	$	10,264
Dec 31, 2003	$	10,837	$	10,948
Jan 31, 2004	$	11,037	$	11,123
Feb 29, 2004	$	11,015	$	11,106
Mar 31, 2004	$	12,398	$	12,523

Performance figures assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the Index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund’s past performance is no guarantee of future results.

22 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

FUND ALLOCATION BY SECTOR

(% of Net Assets)

[GRAPHIC APPEARS HERE]

Consumer Discretionary	21.46	%
Consumer Staples	5.57	%
Energy	0.61	%
Financials	16.83	%
Health Care	5.17	%
Industrials	16.46	%
Information Technology	15.43	%
Materials	7.10	%
Short-Term and Net Other Assets	0.49	%
Telecommunication Services	6.01	%
Utilities	4.87	%

The iShares S&P/TOPIX 150 Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Standard & Poor’s/Tokyo Stock Price 150 Index (the “Index”). The Index includes 150 highly liquid securities selected from each major sector of the Tokyo market. For the one-year period ended March 31, 2004 (the “reporting period”), the Fund returned 65.79%, compared to a return of 67.63% by the Index.

Japan appeared to turn the corner toward recovery during the reporting period. After more than a decade of anemic economic activity, gross domestic product (“GDP”) annual growth for the fourth quarter of 2003 was a robust 7.00% – its highest growth level in 13 years.

The Fund’s underperformance for the reporting period, relative to the Index, was due primarily to a difference in the methodology regarding the exchange rates used by the Fund and the Index. Also contributing to the Fund’s underperformance of the Index was the negative effect of Fund expenses.

In addition to GDP growth that outpaced the U.S. and Europe, Japan saw export levels grow an annualized 17.9% during the fourth quarter, reassuring to a nation that has relied on an export-led recovery. Surprisingly, foreign trade accounted for less of the GDP growth than domestic consumer demand and firms’ capital investment. This seemed to indicate that, as increased foreign trade translated into higher levels of manufacturing activity, the benefits may have finally trickled through the economy, providing broad-based growth during the reporting period.

In March, a new round of economic data offered even more encouragement, including a greater-than-expected increase in trade surplus and the largest increase in Japanese household spending in 22 years.

All of the Fund’s ten largest holdings logged gains during the reporting period. As market valuations improved and investor interest returned, financial companies around the world rebounded. Mitsubishi Tokyo Financial Group Inc. (2.02% of the net assets of the Fund as of March 31, 2004) participated in this trend, delivering the strongest returns among the Fund’s ten largest holdings. Nomura Holdings Inc. (2.18% of the Index as of March 31, 2004) also benefited from the trend and logged solid gains.

As domestic consumer demand improved, both Matsushita Electric Industrial Co. Ltd. (2.07% of the net assets of the Fund as of March 31, 2004) and Nippon Telegraph & Telephone Corp. (3.32% of the net assets of the Fund as of March 31, 2004) gained.

Exporters also performed well. The Fund’s largest holding, Toyota Motor Corp. (6.73% of the Fund’s net assets as of March 31, 2004) and Sony Corp. (2.51% of the net assets of the Fund as of March 31, 2004) both delivered gains during the reporting period.

MANAGERS’ DISCUSSION & ANALYSIS 23

Managers’ Discussion & Analysis

iSHARES^® NASDAQ BIOTECHNOLOGY INDEX FUND

Performance as of 3/31/04

Average Annual Total Returns						Cumulative Total Returns
Year Ended 3/31/04			Inception to 3/31/04			Inception to 3/31/04
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
51.48%	51.44%	51.93%	(7.71)%	(7.71)%	(7.54)%	(22.35)%	(22.35)%	(21.89)%

Total returns for the periods since inception are calculated from the inception date of the Fund (2/5/01). “Average annual total returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative total returns” represent the total change in value of an investment over the periods indicated.

Certain sectors and markets performed exceptionally well based on market conditions during the one-year period. Investors should not expect that such exceptional returns will be repeated.

A fund’s per share net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which the shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since fund shares typically do not trade in the secondary market until several days after fund inception, for the period from inception to the first day of secondary market trading in fund shares (2/9/01), the NAV of the Fund is used as a proxy for secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the Index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. 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. The Fund’s past performance is no guarantee of future results.

GROWTH OF $10,000 INVESTMENT

SINCE INCEPTION AT NET ASSET VALUE

[GRAPHIC APPEARS HERE]

	iSHARES NASDAQ BIOTECHNOLOGY INDEX FUND		NASDAQ BIOTECHNOLOGY INDEX
Feb 5, 2001	$	10,000	$	10,000
Feb 28, 2001	$	9,681	$	9,661
Mar 31, 2001	$	7,707	$	7,696
Apr 30, 2001	$	9,169	$	9,156
May 31, 2001	$	9,929	$	9,916
Jun 30, 2001	$	10,182	$	10,174
Jul 31, 2001	$	8,734	$	8,725
Aug 31, 2001	$	8,821	$	8,815
Sep 30, 2001	$	7,458	$	7,456
Oct 31, 2001	$	8,673	$	8,671
Nov 30, 2001	$	9,504	$	9,499
Dec 31, 2001	$	9,125	$	9,123
Jan 31, 2002	$	7,833	$	7,830
Feb 28, 2002	$	7,479	$	7,480
Mar 31, 2002	$	7,754	$	7,759
Apr 30, 2002	$	6,532	$	6,539
May 31, 2002	$	5,815	$	5,822
Jun 30, 2002	$	5,113	$	5,120
Jul 31, 2002	$	5,154	$	5,153
Aug 31, 2002	$	4,911	$	4,912
Sep 30, 2002	$	4,662	$	4,668
Oct 31, 2002	$	5,127	$	5,134
Nov 30, 2002	$	5,593	$	5,601
Dec 31, 2002	$	4,979	$	4,988
Jan 31, 2003	$	4,870	$	4,881
Feb 28, 2003	$	4,800	$	4,813
Mar 31, 2003	$	5,126	$	5,142
Apr 30, 2003	$	5,745	$	5,764
May 31, 2003	$	6,833	$	6,856
Jun 30, 2003	$	6,724	$	6,749
Jul 31, 2003	$	7,329	$	7,357
Aug 31, 2003	$	7,404	$	7,438
Sep 30, 2003	$	7,199	$	7,233
Oct 31, 2003	$	7,145	$	7,180
Nov 30, 2003	$	6,954	$	6,980
Dec 31, 2003	$	7,249	$	7,270
Jan 31, 2004	$	7,729	$	7,777
Feb 29, 2004	$	7,780	$	7,829
Mar 31, 2004	$	7,765	$	7,811

Performance figures assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the Index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund’s past performance is no guarantee of future results.

24 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

FUND ALLOCATION BY SECTOR

(% of Net Assets)

[GRAPHIC APPEARS HERE]

Diagnostic Equipment	0.69	%
Diagnostic Kits	0.72	%
Drug Delivery Systems	1.79	%
Medical Instruments	0.11	%
Medical Products	0.28	%
Medical-Biomedical/Gene	49.96	%
Medical-Drugs	13.63	%
Medical-Generic Drugs	7.27	%
Research & Development	1.27	%
Therapeutics	24.28	%

The iShares Nasdaq Biotechnology Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Nasdaq Biotechnology Index (the “Index”). For the one-year period ended March 31, 2004 (the “reporting period”), the Fund returned 51.48%, compared to a return of 51.93% by the Index.

Equity markets rebounded during the reporting period. Positive economic news and corporate earnings growth provided signs of encouragement during the reporting period, and equities responded positively. While gross domestic product (GDP) figures revealed signs of economic growth during the reporting period, jobless claims remained high during much of the period, leading to concerns about the strength of the recovery. However, in January the unemployment rate fell to 5.6%, the lowest rate since the 5.4% recorded in October 2001. Jobless claims also began to drop, dipping to a three-year low by mid-March. Even so, at its March 16 meeting the Federal Reserve Board kept its benchmark interest rate at its 46-year low of 1.0%, citing low inflation, ample factory capacity and high unemployment levels.

Biotechnology stocks generally benefited from the improved economic landscape during the reporting period, as well as from a resurgence in investor activity. Because of their growth orientation and, in some cases, depressed prices, many biotechnology stocks were recipients of the renewed investor interest.

All of the ten largest Fund holdings at March 31, 2004 logged positive returns during the reporting period. Four of the ten posted triple-digit gains, although these returns tended to be a retracing of losses suffered in the past few years. MGI Pharma Inc. and Tularik Inc. (1.42% and 1.66%, respectively, of the Fund’s net assets as of March 31, 2004) led the way with gains of 386.19% and 386.14%, respectively. Millenium Pharmaceuticals Inc. (1.47% of the net assets of the Fund as of March 31, 2004) rose 115.01% and Biogen Idec Inc. (4.68% of the net assets of the Fund as of March 31, 2004) gained 62.48%. Amgen Inc., the largest holding at 16.59% of the Fund’s net assets as of March 31, 2004 returned 1.04% during the reporting period.

MANAGERS’ DISCUSSION & ANALYSIS 25

Schedule of Investments

iSHARES^® S&P 100 INDEX FUND

March 31, 2004

Security	Shares	Value
COMMON STOCKS – 99.85%
General Electric Co.	692,976	$	21,149,627
Exxon Mobil Corp.	445,594		18,532,254
Microsoft Corp.	733,496		18,315,395
Pfizer Inc.	518,134		18,160,597
Citigroup Inc.	350,008		18,095,414
Wal-Mart Stores Inc.	294,080		17,553,635
American International Group Inc.	177,281		12,648,999
Intel Corp.	440,599		11,984,293
Bank of America Corp.	139,930		11,331,531
Cisco Systems Inc.1	467,014		10,984,169
International Business Machines Corp.	115,477		10,605,408
Johnson & Johnson	201,669		10,228,652
Procter & Gamble Co.	87,818		9,210,352
Coca-Cola Co. (The)	166,158		8,357,747
Altria Group Inc.	139,076		7,572,688
Verizon Communications Inc.	187,652		6,856,804
Merck & Co. Inc.	151,146		6,679,142
Wells Fargo & Company	114,977		6,515,747
PepsiCo Inc.	116,214		6,258,124
JP Morgan Chase & Co.	139,855		5,866,917
Home Depot Inc.	154,602		5,775,931
SBC Communications Inc.	224,759		5,515,586
Time Warner Inc.1	309,375		5,216,062
Amgen Inc.1	87,655		5,098,891
Hewlett-Packard Co.	207,298		4,734,686
Viacom Inc. Class B	118,862		4,660,579
American Express Co.	87,403		4,531,846
3M Co.	53,248		4,359,414
Morgan Stanley	74,540		4,271,142
Oracle Corp.1	355,220		4,266,192
Bank One Corp.	76,077		4,147,718
Medtronic Inc.	82,369		3,933,120
Merrill Lynch & Co. Inc.	65,933		3,926,969
Tyco International Ltd.	135,895		3,893,392
U.S. Bancorp	130,460		3,607,219
Walt Disney Co. (The)	139,135		3,476,984
Texas Instruments Inc.	117,716		3,439,662
Goldman Sachs Group Inc. (The)	32,842		3,427,063
Bristol-Myers Squibb Co.	131,900		3,195,937
United Technologies Corp.	35,038		3,023,779
Du Pont (E.I.) de Nemours and Co.	67,805		2,862,727
Anheuser-Busch Companies Inc.	55,364		2,823,564
Gillette Co. (The)	68,425		2,675,417
Schlumberger Ltd.	40,000		2,554,000
Dow Chemical Co. (The)	63,318		2,550,449
McDonald’s Corp.	85,735		2,449,449
Boeing Co. (The)	57,246		2,351,093
EMC Corp.1	164,333		2,236,572
Allstate Corp. (The)	47,810		2,173,443
Alcoa Inc.	59,136		2,051,428
Colgate-Palmolive Co.	36,191		1,994,124
Honeywell International Inc.	58,356		1,975,351
Nextel Communications Inc. Class A1	74,714		1,847,677
General Motors Corp.	38,188		1,798,655
Clear Channel Communications Inc.	41,828		1,771,416
Ford Motor Company	124,444		1,688,705
Lehman Brothers Holdings Inc.	18,838		1,561,105
Exelon Corp.	22,371		1,540,691
FedEx Corp.	20,275		1,523,869
Southern Company	49,753		1,517,466
International Paper Co.	32,646		1,379,620
HCA Inc.	33,669		1,367,635
Baxter International Inc.	41,471		1,281,039
Hartford Financial Services Group Inc.	19,795		1,260,941
Avon Products Inc.	15,993		1,213,389
General Dynamics Corp.	13,466		1,202,918
Lucent Technologies Inc.1	289,444		1,189,615
Sara Lee Corp.	53,758		1,175,150
AT&T Corp.	53,918		1,055,175
Weyerhaeuser Co.	14,936		978,308
Entergy Corp.	15,548		925,106
Halliburton Co.	29,763		904,498
Heinz (H.J.) Co.	23,923		892,089
Raytheon Co.	28,281		886,327
American Electric Power Co. Inc.	26,838		883,507
Baker Hughes Inc.	22,750		829,920
Burlington Northern Santa Fe Corp.	25,278		796,257
Xerox Corp.1	54,201		789,709
Campbell Soup Co.	27,932		761,706

26 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® S&P 100 INDEX FUND

March 31, 2004

Security	Shares		Value
May Department Stores Co. (The)		19,609	$	678,079
Sears, Roebuck and Co.		15,145		650,629
Limited Brands Inc.		31,933		638,660
Norfolk Southern Corp.		26,565		586,821
CIGNA Corp.		9,578		565,294
National Semiconductor Corp.1		12,097		537,470
Computer Sciences Corp.1		12,743		513,925
Eastman Kodak Co.		19,472		509,582
Rockwell Automation Inc.		12,707		440,552
Harrah’s Entertainment Inc.		7,597		416,999
MedImmune Inc.1		16,820		388,206
RadioShack Corp.		11,151		369,767
AES Corp. (The)1		42,463		362,209
Williams Companies Inc.		35,205		336,912
Unisys Corp.1		22,630		323,156
El Paso Corp.		43,618		310,124
Black & Decker Corp.		5,334		303,718
Toys R Us Inc.1		14,499		243,583
Boise Cascade Corp.		5,925		205,301
Allegheny Technologies Inc.		5,561		67,288
Delta Air Lines Inc.		8,346		66,100
TOTAL COMMON STOCKS (Cost: $422,724,190)				391,644,152
SHORT-TERM INVESTMENTS – 7.06%
MONEY MARKET FUNDS – 2.89%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares2,3		8,252,354		8,252,354
Barclays Global Investors Funds Prime Money Market Fund, Institutional Shares2,3		2,419,658		2,419,658
BlackRock Temp Cash Money Market Fund2		113,259		113,259
Short-Term Investment Co. – Liquid Assets Money Market Portfolio2		564,014		564,014
				11,349,285
Security	Principal		Value
FLOATING RATE NOTES – 1.36%
Beta Finance Inc.
1.05%, 05/20/042,4	$	109,984	$	109,982
1.05%, 09/15/042,4		219,969		219,959
1.06%, 10/12/042,4		109,984		109,980
1.14%, 08/23/042,4		109,984		110,022
CC USA Inc.
1.05%, 04/19/042,4		96,786		96,786
1.06%, 05/24/042,4		219,969		219,966
1.09%, 07/15/042,4		109,984		109,996
1.51%, 02/15/052,4		142,980		143,179
Dorada Finance Inc.
1.04%, 07/01/042		76,989		76,787
1.05%, 05/20/042,4		219,969		219,965
1.24%, 08/09/042		54,992		54,989
1.48%, 01/18/052,4		164,977		164,970
Five Finance Inc.
1.06%, 04/15/042,4		109,984		109,984
HBOS Treasury Services PLC
1.10%, 04/22/052		219,969		219,969
Holmes Financing PLC
1.05%, 04/15/042		21,997		21,997
K2 USA LLC
1.05%, 08/16/042,4		54,992		54,989
1.05%, 09/27/042,4		237,566		237,549
1.06%, 04/13/042		109,984		109,985
1.06%, 05/17/042		109,984		109,984
1.46%, 01/12/052,4		109,984		109,976
Links Finance LLC
1.05%, 06/28/042		109,984		109,979
1.06%, 05/04/042		109,984		109,984
1.06%, 07/20/042		87,988		87,982
Nationwide Building Society
1.09%, 07/23/042,4		164,977		164,977
1.11%, 12/28/042,4		219,969		219,969
Northern Rock PLC
1.11%, 01/13/052,4		208,970		208,970
Permanent Financing PLC
1.04%, 03/10/052		219,969		219,969
1.05%, 12/10/042		109,984		109,984

SCHEDULES OF INVESTMENTS 27

Schedule of Investments (Continued)

iSHARES^® S&P 100 INDEX FUND

March 31, 2004

Security	Principal		Value
Sigma Finance Inc.
1.05%, 07/01/042	$	109,984	$	109,978
1.06%, 07/20/042		109,984		109,978
1.09%, 10/07/042		219,969		219,946
1.24%, 08/06/042		54,992		54,990
Tango Finance Corp.
1.05%, 01/18/052,4		96,786		96,779
1.06%, 07/15/042,4		65,991		65,985
1.07%, 02/25/052,4		123,183		123,160
1.10%, 07/06/042,4		65,991		65,989
WhistleJacket Capital LLC
1.05%, 09/15/042,4		109,984		109,974
1.32%, 02/04/052,4		54,992		54,983
White Pine Finance LLC
1.04%, 08/26/042,4		109,984		109,978
1.05%, 11/15/042,4		131,981		131,981
1.06%, 04/20/042,4		109,984		109,984
1.06%, 07/06/042,4		131,981		131,978
				5,338,511
COMMERCIAL PAPER – 1.26%
Alpine Securitization Corp.
1.03%, 04/14/042		103,385		103,347
1.03%, 04/20/042		109,984		109,925
1.03%, 04/23/042		129,782		129,700
1.03%, 04/26/042		109,984		109,906
Amsterdam Funding Corp.
1.03%, 05/05/042		89,087		89,001
Barton Capital Corp.
1.03%, 04/02/042		114,624		114,620
Blue Ridge Asset Funding Corp.
1.02%, 04/23/042		65,991		65,950
1.03%, 05/21/042		109,984		109,827
Corporate Asset Funding
1.05%, 05/21/042		114,384		114,218
Corporate Receivables Corp.
1.03%, 04/07/042		109,984		109,966
1.04%, 06/03/042		219,969		219,569
Delaware Funding Corp.
1.03%, 04/02/042		109,984		109,981
1.03%, 05/05/042		165,159		164,999
1.03%, 05/21/042		54,992		54,914
Edison Asset Securitization
1.07%, 09/21/042		109,984		109,419
Eureka Securitization Inc.
1.03%, 05/25/042		43,994		43,926
1.04%, 04/14/042		131,981		131,932
Falcon Asset Securitization
1.03%, 04/15/042		132,186		132,133
1.03%, 04/22/042		129,782		129,704
1.03%, 04/30/042		109,984		109,893
Galaxy Funding Inc.
1.05%, 05/17/042		109,984		109,838
Gemini Securitization Corp.
1.03%, 04/20/042		66,035		65,999
1.03%, 04/23/042		127,113		127,033
1.03%, 04/30/042		77,084		77,020
1.03%, 05/24/042		54,992		54,909
1.04%, 04/19/042		54,992		54,964
GIRO Funding US Corp.
1.05%, 05/19/042		54,992		54,915
Jupiter Securitization Corp.
1.03%, 04/16/042		219,969		219,875
1.03%, 04/19/042		296,958		296,805
1.03%, 04/28/042		131,981		131,879
1.03%, 04/30/042		187,359		187,203
Liberty Street Funding Corp.
1.04%, 04/08/042		77,068		77,053
1.05%, 04/05/042		89,087		89,077
Polonius Inc.
1.04%, 05/21/042		127,252		127,068
Preferred Receivables Funding Corp.
1.03%, 04/19/042		230,967		230,849
1.04%, 04/23/042		252,964		252,804
1.04%, 05/20/042		54,992		54,914
Receivables Capital Corp.
1.04%, 04/14/042		96,786		96,750
Scaldis Capital LLC
1.05%, 06/30/042		78,749		78,542
Thames Asset Global Securitization No. 1 Inc.
1.03%, 04/19/042		109,984		109,928

28 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® S&P 100 INDEX FUND

March 31, 2004

Security	Principal		Value
Thunder Bay Funding Inc.
1.03%, 04/19/042	$	69,961	$	69,925
1.04%, 04/29/042		99,074		98,994
				4,929,274
TIME DEPOSITS – 1.07%
Abbey National Treasury Services PLC
1.08%, 04/01/042		769,886		769,886
1.33%, 02/10/052		109,984		109,970
1.39%, 02/02/052		109,984		109,971
1.40%, 10/25/042		219,969		219,950
Bank of New York
1.39%, 11/01/042		219,969		219,956
Bank of Nova Scotia
1.24%, 10/07/042		164,977		164,968
1.42%, 10/29/042		164,977		164,984
Canadian Imperial Bank of Commerce
1.24%, 10/07/042		164,977		164,964
1.38%, 11/22/042		54,992		54,995
1.40%, 10/29/042		219,969		219,966
National City Bank (Cleveland, Ohio)
1.02%, 04/01/042		329,953		329,953
Toronto-Dominion Bank
1.04%, 06/22/042		54,992		54,992
1.22%, 03/23/052		384,946		384,880
1.34%, 02/10/052		87,988		87,976
1.41%, 11/01/042		164,977		164,967
UBS Finance (Delaware)
1.06%, 04/01/042		439,938		439,938
1.10%, 09/08/042		219,969		218,894
1.11%, 12/17/042		329,953		327,308
				4,208,518
REPURCHASE AGREEMENTS – 0.34%
Bank of America, NA
1.06%, 04/01/042		439,938		439,938
Goldman, Sachs & Co.
1.08%, 04/01/042		879,876		879,876
				1,319,814
U.S. GOVERNMENT AGENCY NOTES – 0.14%
Federal Home Loan Mortgage Corporation
1.15%, 05/12/042		164,977		164,761
1.28%, 08/19/042		87,988		87,550
Federal National Mortgage Association
1.28%, 08/20/042		285,960		284,526
				536,837
TOTAL SHORT-TERM INVESTMENTS (Cost: $27,682,239)				27,682,239
TOTAL INVESTMENTS IN SECURITIES – 106.91% (Cost: $450,406,429)				419,326,391
Other Assets, Less Liabilities – (6.91%)				(27,105,658	)
NET ASSETS – 100.00%			$	392,220,733

¹ Non-income earning securities.

² All or a portion of this security represents investments of securities lending collateral.

³ Issuer is an affiliate of the Fund’s investment advisor. See Note 2.

⁴ Security exempt from registration under Rule 144A of the Securities Act of 1933.

These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 29

Schedule of Investments

iSHARES^® S&P GLOBAL 100 INDEX FUND

March 31, 2004

Security	Shares	Value
COMMON STOCKS – 99.70%
AUSTRALIA – 0.76%
BHP Billiton Ltd.	96,406	$	902,350
News Corp. Ltd.	42,539		382,572
			1,284,922
BELGIUM – 0.37%
Fortis	29,382		624,660
			624,660
CANADA – 0.61%
Alcan Ltd.	10,042		449,781
Nortel Networks Corp.1	96,465		573,002
			1,022,783
FINLAND – 1.39%
Nokia OYJ ADR	115,876		2,349,965
			2,349,965
FRANCE – 5.83%
Alcatel SA1	31,565		498,067
Aventis SA	16,756		1,287,995
AXA	34,397		717,753
BNP Paribas SA	19,942		1,218,719
Carrefour SA	15,163		747,961
France Telecom SA1	25,376		649,263
L’Oreal SA	7,906		605,287
Suez SA	23,836		486,834
Total SA	16,166		2,968,040
Vivendi Universal SA1	25,075		664,672
			9,844,591
GERMANY – 4.58%
Allianz AG	7,931		863,629
BASF AG	13,806		701,213
Bayer AG	18,939		461,061
DaimlerChrysler AG Registered	18,644		778,537
Deutsche Bank AG	14,455		1,201,718
Deutsche Telekom AG1	57,761		1,037,764
E.ON AG	14,160		932,706
Siemens AG	20,945		1,546,160
Volkswagen AG	4,720		206,147
			7,728,935
ITALY – 0.48%
Assicurazioni Generali SpA	31,506		803,780
			803,780
JAPAN – 5.20%
Canon Inc.	23,600		1,222,704
Fuji Photo Film Co. Ltd.	11,800		375,431
Hitachi Ltd.	59,000		457,663
Honda Motor Co. Ltd.	17,700		816,648
Matsushita Electric Industrial Co. Ltd.	59,000		911,924
Mitsubishi Tokyo Financial Group Inc.	59		584,130
Nissan Motor Co. Ltd.	64,900		726,760
Sony Corp.	23,600		989,052
Toshiba Corp.	59,000		267,679
Toyota Motor Corp.	64,900		2,420,455
			8,772,446
NETHERLANDS – 3.84%
ABN AMRO Holding NV	35,223		785,633
Aegon NV	35,282		450,924
ING Groep NV	39,943		877,657
Koninklijke Philips Electronics NV NY	32,863		952,370
Royal Dutch Petroleum Co. NY Shares	51,625		2,456,318
Unilever NV NY Shares	13,806		958,689
			6,481,591
SOUTH KOREA – 0.90%
Samsung Electronics Co. Ltd. GDR	6,136		1,518,660
			1,518,660
SPAIN – 2.74%
Banco Bilbao Vizcaya Argentaria SA	83,367		1,103,383
Banco Santander Central Hispano SA	118,885		1,292,965
Repsol YPF SA	24,426		506,089
Telefonica SA	113,759		1,720,919
			4,623,356
SWEDEN – 0.64%
Telefonaktiebolaget LM Ericsson AB ADR1	38,899		1,079,447
			1,079,447

30 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® S&P GLOBAL 100 INDEX FUND

March 31, 2004

Security	Shares		Value
SWITZERLAND – 5.24%
Credit Suisse Group		28,910	$	1,001,815
Nestle SA		9,440		2,406,852
Novartis AG		63,661		2,703,526
Swiss Re		8,319		573,271
UBS AG Registered		28,969		2,151,780
				8,837,244
UNITED KINGDOM – 11.89%
AstraZeneca PLC		42,067		1,950,603
Barclays PLC2		165,731		1,459,741
BP PLC		551,650		4,623,156
Diageo PLC		79,060		1,030,180
GlaxoSmithKline PLC		148,104		2,907,021
HSBC Holdings PLC		262,609		3,904,525
Reuters Group PLC		39,766		282,835
Vodafone Group PLC		1,648,342		3,900,359
				20,058,420
UNITED STATES – 55.23%
Altria Group Inc.		49,973		2,721,030
American International Group Inc.		64,192		4,580,099
AT&T Corp.		19,541		382,417
Bristol-Myers Squibb Co.		48,144		1,166,529
ChevronTexaco Corp.		25,960		2,278,769
Citigroup Inc.		125,729		6,500,189
Coca-Cola Co. (The)		55,991		2,816,347
Colgate-Palmolive Co.		12,567		692,442
Dell Inc.1		55,755		1,874,483
Dow Chemical Co. (The)		23,305		938,725
Du Pont (E.I.) de Nemours and Co.		25,252		1,066,139
EMC Corp.1		58,882		801,384
Exxon Mobil Corp.		163,017		6,779,877
Ford Motor Company		46,020		624,491
General Electric Co.		246,620		7,526,842
General Motors Corp.		13,570		639,147
Gillette Co. (The)		22,774		890,463
Hewlett-Packard Co.		70,623		1,613,029
Intel Corp.		160,008		4,352,218
International Business Machines Corp.		42,303		3,885,108
Johnson & Johnson		73,514		3,728,630
JP Morgan Chase & Co.		49,678		2,083,992
Kimberly-Clark Corp.		12,272		774,363
Security	Shares or Principal		Value
Lucent Technologies Inc.1		106,849	$	439,149
McDonald’s Corp.		33,158		947,324
Merck & Co. Inc.		55,401		2,448,170
Microsoft Corp.		234,584		5,857,563
Morgan Stanley		26,255		1,504,412
PepsiCo Inc.		42,539		2,290,725
Pfizer Inc.		187,207		6,561,605
Procter & Gamble Co.		31,565		3,310,537
Texas Instruments Inc.		42,539		1,242,990
3M Co.		19,116		1,565,027
Time Warner Inc.1		111,274		1,876,080
Tyco International Ltd.		49,560		1,419,894
United Technologies Corp.		12,390		1,069,257
Wal-Mart Stores Inc.		66,080		3,944,315
				93,193,761
TOTAL COMMON STOCKS (Cost: $165,433,854)				168,224,561
SHORT-TERM INVESTMENTS – 10.69%
MONEY MARKET FUNDS – 4.01%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares2,3		4,636,455		4,636,455
Barclays Global Investors Funds Prime Money Market Fund, Institutional Shares2,3		1,668,927		1,668,927
BlackRock Temp Cash Money Market Fund3		78,119		78,119
Short-Term Investment Co. – Liquid Assets Money Market Portfolio3		389,022		389,022
				6,772,523
FLOATING RATE NOTES – 2.18%
Beta Finance Inc.
1.05%, 05/20/043,4	$	75,860		75,859
1.05%, 09/15/043,4		151,721		151,714
1.06%, 10/12/043,4		75,860		75,856
1.14%, 08/23/043,4		75,860		75,886
CC USA Inc.
1.05%, 04/19/043,4		66,757		66,757
1.06%, 05/24/043,4		151,721		151,718
1.09%, 07/15/043,4		75,860		75,868

SCHEDULES OF INVESTMENTS 31

Schedule of Investments (Continued)

iSHARES^® S&P GLOBAL 100 INDEX FUND

March 31, 2004

Security	Principal		Value
1.51%, 02/15/053,4	$	98,618	$	98,756
Dorada Finance Inc.
1.04%, 07/01/043		53,102		52,963
1.05%, 05/20/043,4		151,721		151,718
1.24%, 08/09/043		37,930		37,928
1.48%, 01/18/053,4		113,790		113,786
Five Finance Inc.
1.06%, 04/15/043,4		75,860		75,860
HBOS Treasury Services PLC
1.10%, 04/22/053		151,721		151,721
Holmes Financing PLC
1.05%, 04/15/043		15,172		15,172
K2 USA LLC
1.05%, 08/16/043,4		37,930		37,928
1.05%, 09/27/043,4		163,858		163,847
1.06%, 04/13/043		75,860		75,860
1.06%, 05/17/043		75,860		75,860
1.46%, 01/12/053,4		75,860		75,854
Links Finance LLC
1.05%, 06/28/043		75,860		75,857
1.06%, 05/04/043		75,860		75,860
1.06%, 07/20/043		60,688		60,685
Nationwide Building Society
1.09%, 07/23/043,4		113,790		113,790
1.11%, 12/28/043,4		151,721		151,721
Northern Rock PLC
1.11%, 01/13/053,4		144,135		144,135
Permanent Financing PLC
1.04%, 03/10/053		151,721		151,721
1.05%, 12/10/043		75,860		75,860
Sigma Finance Inc.
1.05%, 07/01/043		75,860		75,856
1.06%, 07/20/043		75,860		75,856
1.09%, 10/07/043		151,721		151,705
1.24%, 08/06/043		37,930		37,929
Tango Finance Corp.
1.05%, 01/18/053,4		66,757		66,752
1.06%, 07/15/043,4		45,516		45,512
1.07%, 02/25/053,4		84,964		84,949
1.10%, 07/06/043,4		45,516		45,515
WhistleJacket Capital LLC
1.05%, 09/15/043,4		75,860		75,853
1.32%, 02/04/053,4		37,930		37,924
White Pine Finance LLC
1.04%, 08/26/043,4		75,860		75,856
1.05%, 11/15/043,4		91,032		91,032
1.06%, 04/20/043,4		75,860		75,860
1.06%, 07/06/043,4		91,032		91,030
				3,682,169
COMMERCIAL PAPER – 2.02%
Alpine Securitization Corp.
1.03%, 04/14/043		71,309		71,282
1.03%, 04/20/043		75,860		75,819
1.03%, 04/23/043		89,515		89,459
1.03%, 04/26/043		75,860		75,806
Amsterdam Funding Corp.
1.03%, 05/05/043		61,447		61,387
Barton Capital Corp.
1.03%, 04/02/043		79,060		79,058
Blue Ridge Asset Funding Corp.
1.02%, 04/23/043		45,516		45,488
1.03%, 05/21/043		75,860		75,752
Corporate Asset Funding
1.05%, 05/21/043		78,895		78,780
Corporate Receivables Corp.
1.03%, 04/07/043		75,860		75,848
1.04%, 06/03/043		151,721		151,445
Delaware Funding Corp.
1.03%, 04/02/043		75,860		75,858
1.03%, 05/05/043		113,916		113,806
1.03%, 05/21/043		37,930		37,876
Edison Asset Securitization
1.07%, 09/21/043		75,860		75,470
Eureka Securitization Inc.
1.03%, 05/25/043		30,344		30,297
1.04%, 04/14/043		91,032		90,998
Falcon Asset Securitization
1.03%, 04/15/043		91,173		91,137
1.03%, 04/22/043		89,515		89,461
1.03%, 04/30/043		75,860		75,797
Galaxy Funding Inc.
1.05%, 05/17/043		75,860		75,759

32 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® S&P GLOBAL 100 INDEX FUND

March 31, 2004

Security	Principal		Value
Gemini Securitization Corp.
1.03%, 04/20/043	$	45,547	$	45,522
1.03%, 04/23/043		87,675		87,620
1.03%, 04/30/043		53,167		53,123
1.03%, 05/24/043		37,930		37,873
1.04%, 04/19/043		37,930		37,910
GIRO Funding US Corp.
1.05%, 05/19/043		37,930		37,877
Jupiter Securitization Corp.
1.03%, 04/16/043		151,721		151,656
1.03%, 04/19/043		204,823		204,718
1.03%, 04/28/043		91,032		90,962
1.03%, 04/30/043		129,228		129,121
Liberty Street Funding Corp.
1.04%, 04/08/043		53,157		53,146
1.05%, 04/05/043		61,447		61,440
Polonius Inc.
1.04%, 05/21/043		87,770		87,644
Preferred Receivables Funding Corp.
1.03%, 04/19/043		159,307		159,225
1.04%, 04/23/043		174,479		174,368
1.04%, 05/20/043		37,930		37,876
Receivables Capital Corp.
1.04%, 04/14/043		66,757		66,732
Scaldis Capital LLC
1.05%, 06/30/043		54,316		54,173
Thames Asset Global Securitization No. 1 Inc.
1.03%, 04/19/043		75,860		75,821
Thunder Bay Funding Inc.
1.03%, 04/19/043		48,255		48,230
1.04%, 04/29/043		68,335		68,280
				3,399,900
TIME DEPOSITS – 1.72%
Toronto-Dominion Bank
1.41%, 11/01/043		113,790		113,784
Abbey National Treasury Services PLC
1.08%, 04/01/043		531,016		531,016
1.33%, 02/10/053		75,860		75,850
1.39%, 02/02/053		75,860		75,851
1.40%, 10/25/043		151,721		151,708
Bank of New York
1.39%, 11/01/043		151,721		151,712
Bank of Nova Scotia
1.24%, 10/07/043		113,790		113,785
1.42%, 10/29/043		113,790		113,795
Canadian Imperial Bank of Commerce
1.24%, 10/07/043		113,790		113,782
1.38%, 11/22/043		37,930		37,932
1.40%, 10/29/043		151,721		151,718
National City Bank (Cleveland, Ohio)
1.02%, 04/01/043		227,581		227,581
Toronto-Dominion Bank
1.04%, 06/22/043		37,930		37,930
1.22%, 03/23/053		265,511		265,466
1.34%, 02/10/053		60,688		60,680
UBS Finance (Delaware)
1.06%, 04/01/043		303,441		303,441
1.10%, 09/08/043		151,721		150,979
1.11%, 12/17/043		227,581		225,757
				2,902,767
REPURCHASE AGREEMENTS – 0.54%
Bank of America, NA
1.06%, 04/01/043		303,441		303,441
Goldman, Sachs & Co.
1.08%, 04/01/043		606,883		606,883
				910,324
U.S. GOVERNMENT AGENCY NOTES – 0.22%
Federal Home Loan Mortgage Corporation
1.15%, 05/12/043		113,790		113,641
1.28%, 08/19/043		60,688		60,386
Federal National Mortgage Association
1.28%, 08/20/043		197,237		196,249
				370,276
TOTAL SHORT-TERM INVESTMENTS (Cost: $18,037,959)				18,037,959

SCHEDULES OF INVESTMENTS 33

Schedule of Investments (Continued)

iSHARES^® S&P GLOBAL 100 INDEX FUND

March 31, 2004

Security	Value
TOTAL INVESTMENTS IN SECURITIES – 110.39% (Cost: $183,471,813)	$	186,262,520
Other Assets, Less Liabilities – (10.39%)		(17,526,686	)
NET ASSETS – 100.00%	$	168,735,834

¹ Non-income earning securities.

² Issuer is an affiliate of the Fund’s investment advisor. See Note 2.

³ All or a portion of this security represents investments of securities lending collateral.

⁴ Security exempt from registration under Rule 144A of the Securities Act of 1933.

These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

See notes to financial statements.

34 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® S&P GLOBAL ENERGY SECTOR INDEX FUND

March 31, 2004

Security	Shares	Value
COMMON STOCKS – 98.64%
ARGENTINA – 0.38%
Petrobras Energia Participaciones SA ADR1	16,890	$	234,771
Tenaris SA ADR	3,330		109,191
			343,962
CANADA – 7.24%
Canadian Natural Resources Ltd.	10,170		562,571
EnCana Corp.	54,905		2,368,320
Husky Energy Inc.	11,040		220,086
Imperial Oil Ltd.	15,690		702,812
Nexen Inc.	8,700		338,269
Petro-Canada	10,612		465,257
Precision Drilling Corp.1	1,740		81,158
Suncor Energy Inc.	44,130		1,207,804
Talisman Energy Inc.	9,840		578,308
			6,524,585
CHINA – 0.88%
PetroChina Co. Ltd. ADR	15,540		794,094
			794,094
FRANCE – 8.54%
Total SA	41,910		7,694,578
			7,694,578
ITALY – 4.79%
Eni SpA	214,560		4,313,687
			4,313,687
JAPAN – 0.86%
Nippon Oil Corp.	90,000		515,596
TonenGeneral Sekiyu K.K.	30,000		262,123
			777,719
NETHERLANDS – 6.19%
Royal Dutch Petroleum Co.	117,480		5,579,946
			5,579,946
NORWAY – 1.90%
Norsk Hydro ASA ADR	17,040		1,200,809
Statoil ASA ADR	41,160		507,914
			1,708,723
SPAIN – 2.11%
Repsol YPF SA ADR	91,320		1,900,369
			1,900,369
UNITED KINGDOM – 20.15%
BG Group PLC	445,560		2,663,383
BP PLC	1,388,460		11,636,122
Shell Transport & Trading Co. PLC	590,190		3,856,040
			18,155,545
UNITED STATES – 45.60%
Amerada Hess Corp.	11,550		753,984
Anadarko Petroleum Corp.	15,920		825,611
Apache Corp.	24,614		1,062,586
Ashland Inc.	4,380		203,626
Baker Hughes Inc.	19,530		712,454
BJ Services Co.1	9,960		430,969
Burlington Resources Inc.	18,390		1,170,156
ChevronTexaco Corp.	49,620		4,355,644
ConocoPhillips	55,205		3,853,861
Devon Energy Corp.	13,620		792,003
EOG Resources Inc.	10,500		481,845
Exxon Mobil Corp.	411,930		17,132,169
Halliburton Co.	29,070		883,437
Kerr-McGee Corp.	1,740		89,610
Marathon Oil Corp.	30,570		1,029,292
Nabors Industries Ltd.1	9,750		446,062
Noble Corp.1	5,400		207,468
Occidental Petroleum Corp.	35,010		1,612,210
Rowan Companies Inc.1	6,060		127,805
Schlumberger Ltd.	40,830		2,606,996
Sunoco Inc.	11,700		729,846
Transocean Inc.1	19,230		536,325
Unocal Corp.	27,930		1,041,230
			41,085,189
TOTAL COMMON STOCKS (Cost: $80,654,323)			88,878,397
PREFERRED STOCKS – 1.16%
BRAZIL – 1.16%
Petroleo Brasileiro SA ADR	35,250		1,041,285
			1,041,285
TOTAL PREFERRED STOCKS (Cost: $826,925)			1,041,285

SCHEDULES OF INVESTMENTS 35

Schedule of Investments (Continued)

iSHARES^® S&P GLOBAL ENERGY SECTOR INDEX FUND

March 31, 2004

Security	Shares or Principal		Value
SHORT-TERM INVESTMENTS – 8.84%
MONEY MARKET FUNDS – 3.33%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares2,3		2,055,969	$	2,055,969
Barclays Global Investors Funds Prime Money Market Fund, Institutional Shares2,3		735,998		735,998
BlackRock Temp Cash Money Market Fund2		34,450		34,450
Short-Term Investment Co. – Liquid Assets Money Market Portfolio2		171,559		171,559
				2,997,976
FLOATING RATE NOTES – 1.80%
Beta Finance Inc.
1.05%, 05/20/042,4	$	33,454		33,454
1.05%, 09/15/042,4		66,909		66,906
1.06%, 10/12/042,4		33,454		33,453
1.14%, 08/23/042,4		33,454		33,466
CC USA Inc.
1.05%, 04/19/042,4		29,440		29,440
1.06%, 05/24/042,4		66,909		66,908
1.09%, 07/15/042,4		33,454		33,458
1.51%, 02/15/052,4		43,491		43,551
Dorada Finance Inc.
1.04%, 07/01/042		23,418		23,357
1.05%, 05/20/042,4		66,909		66,908
1.24%, 08/09/042		16,727		16,726
1.48%, 01/18/052,4		50,182		50,180
Five Finance Inc.
1.06%, 04/15/042,4		33,454		33,454
HBOS Treasury Services PLC
1.10%, 04/22/052		66,909		66,909
Holmes Financing PLC
1.05%, 04/15/042		6,691		6,691
K2 USA LLC
1.05%, 08/16/042,4		16,727		16,726
1.05%, 09/27/042,4		72,262		72,256
1.06%, 04/13/042		33,454		33,455
1.06%, 05/17/042		33,454		33,454
1.46%, 01/12/052,4		33,454		33,452
Security	Principal		Value
Links Finance LLC
1.05%, 06/28/042	$	33,454	$	33,453
1.06%, 05/04/042		33,454		33,455
1.06%, 07/20/042		26,764		26,762
Nationwide Building Society
1.09%, 07/23/042,4		50,182		50,182
1.11%, 12/28/042,4		66,909		66,909
Northern Rock PLC
1.11%, 01/13/052,4		63,563		63,563
Permanent Financing PLC
1.04%, 03/10/052		66,909		66,909
1.05%, 12/10/042		33,454		33,454
Sigma Finance Inc.
1.05%, 07/01/042		33,454		33,452
1.06%, 07/20/042		33,454		33,452
1.09%, 10/07/042		66,909		66,902
1.24%, 08/06/042		16,727		16,727
Tango Finance Corp.
1.05%, 01/18/052,4		29,440		29,438
1.06%, 07/15/042,4		20,073		20,071
1.07%, 02/25/052,4		37,469		37,462
1.10%, 07/06/042,4		20,073		20,072
WhistleJacket Capital LLC
1.05%, 09/15/042,4		33,454		33,452
1.32%, 02/04/052,4		16,727		16,725
White Pine Finance LLC
1.04%, 08/26/042,4		33,454		33,452
1.05%, 11/15/042,4		40,145		40,145
1.06%, 04/20/042,4		33,454		33,454
1.06%, 07/06/042,4		40,145		40,144
				1,623,839
COMMERCIAL PAPER – 1.66%
Alpine Securitization Corp.
1.03%, 04/14/042		31,447		31,435
1.03%, 04/20/042		33,454		33,436
1.03%, 04/23/042		39,476		39,452
1.03%, 04/26/042		33,454		33,431
Amsterdam Funding Corp.
1.03%, 05/05/042		27,098		27,072
Barton Capital Corp.
1.03%, 04/02/042		34,866		34,865

36 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® S&P GLOBAL ENERGY SECTOR INDEX FUND

March 31, 2004

Security	Principal		Value
Blue Ridge Asset Funding Corp.
1.02%, 04/23/042	$	20,073	$	20,060
1.03%, 05/21/042		33,454		33,407
Corporate Asset Funding
1.05%, 05/21/042		34,793		34,742
Corporate Receivables Corp.
1.03%, 04/07/042		33,454		33,449
1.04%, 06/03/042		66,909		66,787
Delaware Funding Corp.
1.03%, 04/02/042		33,454		33,453
1.03%, 05/05/042		50,237		50,188
1.03%, 05/21/042		16,727		16,703
Edison Asset Securitization
1.07%, 09/21/042		33,454		33,282
Eureka Securitization Inc.
1.03%, 05/25/042		13,382		13,362
1.04%, 04/14/042		40,145		40,130
Falcon Asset Securitization
1.03%, 04/15/042		40,208		40,191
1.03%, 04/22/042		39,476		39,453
1.03%, 04/30/042		33,454		33,427
Galaxy Funding Inc.
1.05%, 05/17/042		33,454		33,410
Gemini Securitization Corp.
1.03%, 04/20/042		20,086		20,075
1.03%, 04/23/042		38,665		38,640
1.03%, 04/30/042		23,447		23,427
1.03%, 05/24/042		16,727		16,702
1.04%, 04/19/042		16,727		16,719
GIRO Funding US Corp.
1.05%, 05/19/042		16,727		16,704
Jupiter Securitization Corp.
1.03%, 04/16/042		66,909		66,880
1.03%, 04/19/042		90,327		90,280
1.03%, 04/28/042		40,145		40,114
1.03%, 04/30/042		56,990		56,942
Liberty Street Funding Corp.
1.04%, 04/08/042		23,442		23,437
1.05%, 04/05/042		27,098		27,095
Polonius Inc.
1.04%, 05/21/042		38,707		38,651
Preferred Receivables Funding Corp.
1.03%, 04/19/042		70,254		70,218
1.04%, 04/23/042		76,945		76,896
1.04%, 05/20/042		16,727		16,704
Receivables Capital Corp.
1.04%, 04/14/042		29,440		29,429
Scaldis Capital LLC
1.05%, 06/30/042		23,953		23,891
Thames Asset Global Securitization No. 1 Inc.
1.03%, 04/19/042		33,454		33,437
Thunder Bay Funding Inc.
1.03%, 04/19/042		21,280		21,269
1.04%, 04/29/042		30,136		30,111
				1,499,356
TIME DEPOSITS – 1.42%
Toronto-Dominion Bank
1.41%, 11/01/042		50,182		50,179
Abbey National Treasury Services PLC
1.08%, 04/01/042		234,181		234,181
1.33%, 02/10/052		33,454		33,450
1.39%, 02/02/052		33,454		33,450
1.40%, 10/25/042		66,909		66,903
Bank of New York
1.39%, 11/01/042		66,909		66,905
Bank of Nova Scotia
1.24%, 10/07/042		50,182		50,179
1.42%, 10/29/042		50,182		50,184
Canadian Imperial Bank of Commerce
1.24%, 10/07/042		50,182		50,178
1.38%, 11/22/042		16,727		16,728
1.40%, 10/29/042		66,909		66,908
National City Bank (Cleveland, Ohio)
1.02%, 04/01/042		100,363		100,363
Toronto-Dominion Bank
1.04%, 06/22/042		16,727		16,727
1.22%, 03/23/052		117,091		117,071
1.34%, 02/10/052		26,764		26,760

SCHEDULES OF INVESTMENTS 37

Schedule of Investments (Continued)

iSHARES^® S&P GLOBAL ENERGY SECTOR INDEX FUND

March 31, 2004

Security	Principal		Value
UBS Finance (Delaware)
1.06%, 04/01/042	$	133,818	$	133,818
1.10%, 09/08/042		66,909		66,582
1.11%, 12/17/042		100,363		99,559
				1,280,125
REPURCHASE AGREEMENTS – 0.45%
Bank of America, NA
1.06%, 04/01/042		133,818		133,818
Goldman, Sachs & Co.
1.08%, 04/01/042		267,636		267,636
				401,454
U.S. GOVERNMENT AGENCY NOTES – 0.18%
Federal Home Loan Mortgage Corporation
1.15%, 05/12/042		50,182		50,115
1.28%, 08/19/042		26,764		26,630
Federal National Mortgage Association
1.28%, 08/20/042		86,982		86,546
				163,291
TOTAL SHORT-TERM INVESTMENTS (Cost: $7,966,041)				7,966,041
TOTAL INVESTMENTS IN SECURITIES – 108.64% (Cost: $89,447,289)				97,885,723
Other Assets, Less Liabilities – (8.64%)				(7,785,328	)
NET ASSETS – 100.00%			$	90,100,395

¹ Non-income earning securities.

² All or a portion of this security represents investments of securities lending collateral.

³ Issuer is an affiliate of the Fund’s investment advisor. See Note 2.

⁴ Security exempt from registration under Rule 144A of the Securities Act of 1933.

These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

See notes to financial statements.

38 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® S&P GLOBAL FINANCIALS SECTOR INDEX FUND

March 31, 2004

Security	Shares	Value
COMMON STOCKS – 99.54%
AUSTRALIA – 4.33%
AMP Ltd.	12,190	$	52,395
Australia and New Zealand Banking Group Ltd.	12,513		181,126
AXA Asia Pacific Holdings Ltd.	12,542		30,736
Commonwealth Bank of Australia	9,360		237,958
General Property Trust	11,383		26,766
Insurance Australia Group Ltd.	10,761		39,024
Lend Lease Corp. Ltd.	3,380		26,398
Macquarie Bank Ltd.	1,323		36,160
Mirvac Group	3,951		14,026
National Australia Bank Ltd.	11,030		261,046
QBE Insurance Group Ltd.	4,124		35,200
St. George Bank Ltd.	2,640		42,608
Stockland Trust Group	3,443		14,851
Suncorp-Metway Ltd.	3,300		35,725
Westfield America Trust	19,780		29,900
Westfield Holdings Ltd.	2,820		28,677
Westfield Trust	12,333		34,461
Westpac Banking Corp.	13,310		178,335
			1,305,392
BELGIUM – 1.23%
Algemene Maatschappij voor Nijverheidskredit NV	670		40,633
Dexia Group	5,420		94,115
Fortis	7,750		164,765
Groupe Bruxelles Lambert SA	440		26,576
KBC Bankverzekeringsholding NV	770		45,042
			371,131
BRAZIL – 0.27%
Banco Bradesco SA ADR	682		32,838
Banco Itau Holding Financiera SA ADR	700		32,739
Unibanco – Uniao de Bancos Brasileiros SA GDR	700		17,129
			82,706
CANADA – 3.87%
Bank of Montreal	3,380		139,469
Bank of Nova Scotia	3,650		196,629
Brascan Corp. Class A	880		35,019
Canadian Imperial Bank of Commerce	2,690		140,001
Manulife Financial Corp.	3,170		117,128
National Bank of Canada	1,150		40,085
Royal Bank of Canada	4,630		220,359
Sun Life Financial Inc.	4,270		114,365
Toronto-Dominion Bank	4,640		162,934
			1,165,989
CHILE – 0.11%
Banco de Chile ADR	625		17,813
Banco Santander Chile SA ADR	602		16,194
			34,007
DENMARK – 0.29%
Danske Bank A/S	3,840		86,837
			86,837
FRANCE – 3.12%
Assurances Generales de France	560		34,753
AXA	10,060		209,919
BNP Paribas SA	5,730		350,179
Credit Agricole SA	4,790		125,087
Societe Generale Class A	2,580		220,354
			940,292
GERMANY – 2.63%
Allianz AG	1,755		191,107
Bayerische Hypo-Und Vereinsbank AG1	3,752		73,497
Commerzbank AG	2,650		44,941
Deutsche Bank AG	4,110		341,685
Hypo Real Estate Holding AG1	774		21,715
MLP AG1	460		8,423
Muenchener Rueckversicherungs-Gesellschaft AG	990		109,945
			791,313
GREECE – 0.15%
National Bank of Greece SA ADR	8,151		44,423
			44,423
HONG KONG – 1.22%
BOC Hong Kong Holdings Ltd.	25,000		47,651
Cheung Kong (Holdings) Ltd.	10,000		84,070
Hang Seng Bank Ltd.	6,000		76,626

SCHEDULES OF INVESTMENTS 39

Schedule of Investments (Continued)

iSHARES^® S&P GLOBAL FINANCIALS SECTOR INDEX FUND

March 31, 2004

Security	Shares	Value
Sun Hung Kai Properties Ltd.	10,000	$	91,451
Swire Pacific Ltd. Class A	10,000		67,705
			367,503
IRELAND – 0.54%
Allied Irish Banks PLC	5,740		85,564
Bank of Ireland	6,235		77,771
			163,335
ITALY – 2.75%
Alleanza Assicurazioni SpA	3,670		41,538
Assicurazioni Generali SpA	7,540		192,360
Banca Fideuram SpA	3,060		16,922
Banca Intesa SpA	31,022		102,551
Banca Monte dei Paschi di Siena SpA	7,650		22,328
Banca Nazionale del Lavoro SpA	13,170		29,861
Banca Popolare di Verona e Novara SCRL	2,140		34,819
Capitalia SpA1	12,620		32,646
FinecoGroup SpA1	1,117		6,190
Mediobanca SpA	4,190		48,350
Mediolanum SpA	2,010		12,375
Riunione Adriatica di Sicurta SpA	2,320		41,483
Sanpaolo IMI SpA	7,980		90,907
Unicredito Italiano SpA	32,680		155,823
			828,153
JAPAN – 5.76%
Acom Co. Ltd.	500		36,526
Credit Saison Co. Ltd.	1,000		30,086
Daiwa Securities Group Inc.1	10,000		81,703
Millea Holdings Inc.	10		155,717
Mitsubishi Estate Co. Ltd.	10,000		135,627
Mitsubishi Tokyo Financial Group Inc.	20		198,010
Mitsui Fudosan Co. Ltd.	10,000		125,823
Mitsui Sumitomo Insurance Co. Ltd.	10,000		106,503
Mizuho Financial Group Inc.	40		172,250
Nikko Cordial Corp.	10,000		66,324
Nomura Holdings Inc.	10,000		182,150
Promise Co. Ltd.	500		34,363
Sompo Japan Insurance Inc.	10,000		107,272
Sumitomo Mitsui Financial Group Inc.	20		148,027
Takefuji Corp.	400		27,875
UFJ Holdings Inc.	20		127,265
			1,735,521
NETHERLANDS – 1.91%
ABN AMRO Holding NV	9,930		221,484
Aegon NV	6,831		87,304
ING Groep NV	12,090		265,650
			574,438
SINGAPORE – 0.79%
DBS Group Holdings Ltd.	10,000		85,906
Oversea-Chinese Banking Corp. Ltd.	10,000		73,378
United Overseas Bank Ltd.	10,000		79,940
			239,224
SOUTH KOREA – 0.31%
Kookmin Bank ADR	2,300		93,058
			93,058
SPAIN – 2.55%
Banco Bilbao Vizcaya Argentaria SA	23,330		308,778
Banco Popular Espanol SA	1,450		84,854
Banco Santander Central Hispano SA	32,150		349,656
Bankinter SA	640		25,223
			768,511
SWEDEN – 1.09%
ForeningsSparbanken AB	2,500		46,411
Nordea AB	17,010		116,162
Skandia Forsakrings AB	6,800		26,871
Skandinaviska Enskilda Banken AB Class A	3,950		57,878
Svenska Handelsbanken AB Class A	4,240		80,119
			327,441
SWITZERLAND – 4.15%
Baloise Holding (Registered)	500		20,958
Credit Suisse Group	8,190		283,807
Swiss Life Holding1	140		21,605
Swiss Re	2,450		168,832

40 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® S&P GLOBAL FINANCIALS SECTOR INDEX FUND

March 31, 2004

Security	Shares	Value
UBS AG Registered	8,030	$	596,458
Zurich Financial Services AG1	1,000		157,675
			1,249,335
UNITED KINGDOM – 12.24%
Abbey National PLC	6,550		54,773
Alliance & Leicester PLC	3,210		51,562
AMVESCAP PLC	4,740		34,889
Aviva PLC	14,700		142,647
Barclays PLC2	43,940		387,019
British Land Co. PLC	3,880		46,529
Hammerson PLC	2,090		26,120
HBOS PLC	26,250		356,037
HSBC Holdings PLC	73,484		1,092,575
Land Securities Group PLC	3,163		63,363
Legal & General Group PLC	46,140		80,346
Lloyds TSB Group PLC	40,110		304,816
Northern Rock PLC	3,130		44,668
Old Mutual PLC	25,010		46,424
Provident Financial PLC	1,570		21,092
Prudential Corp. PLC	14,300		117,609
Royal & Sun Alliance Insurance Group PLC	22,052		33,233
Royal Bank of Scotland Group PLC	19,030		579,874
Schroders PLC	1,150		14,583
Slough Estates PLC	3,020		24,838
Standard Chartered PLC	6,640		111,172
3i Group PLC	4,740		54,795
			3,688,964
UNITED STATES – 50.23%
ACE Ltd.	1,890		80,627
AFLAC Inc.	3,500		140,490
Allstate Corp. (The)	4,900		222,754
Ambac Financial Group Inc.	770		56,811
American Express Co.	8,780		455,243
American International Group Inc.	17,720		1,264,322
AmSouth Bancorp	2,190		51,487
AON Corp.	2,290		63,914
Apartment Investment & Management Co. Class A	500		15,545
Bank of America Corp.	10,090		817,088
Bank of New York Co. Inc. (The)	5,300		166,950
Bank One Corp.	7,620		415,442
BB&T Corp.	3,660		129,198
Bear Stearns Companies Inc. (The)	690		60,499
Capital One Financial Corp.	1,540		116,162
Charter One Financial Inc.	1,680		59,405
Chubb Corp.	1,240		86,230
Cincinnati Financial Corp.	1,180		51,271
Citigroup Inc.	35,020		1,810,534
Comerica Inc.	1,290		70,073
Countrywide Financial Corp.	1,160		111,244
E*TRADE Financial Corp.1	1,450		19,357
Equity Office Properties Trust	3,020		87,248
Equity Residential	2,000		59,700
Fannie Mae	6,610		491,453
Federated Investors Inc. Class B	780		24,515
Fifth Third Bancorp	3,910		216,497
First Tennessee National Corp.	750		35,775
FleetBoston Financial Corp.	7,140		320,586
Franklin Resources Inc.	1,660		92,429
Freddie Mac	4,740		279,944
Golden West Financial Corp.	1,060		118,667
Goldman Sachs Group Inc. (The)	3,180		331,833
Hancock (John) Financial Services Inc.	1,850		80,826
Hartford Financial Services Group Inc.	1,860		118,482
Huntington Bancshares Inc.	1,550		34,394
Janus Capital Group Inc.	1,620		26,536
Jefferson-Pilot Corp.	1,040		57,210
JP Morgan Chase & Co.	13,840		580,588
KeyCorp	2,890		87,538
Lehman Brothers Holdings Inc.	1,780		147,509
Lincoln National Corp.	1,100		52,052
Loews Corp.	1,380		81,503
M&T Bank Corp.	760		68,286
Marsh & McLennan Companies Inc.	3,510		162,513
Marshall & Ilsley Corp.	1,390		52,556
MBIA Inc.	900		56,430
MBNA Corp.	8,630		238,447
Mellon Financial Corp.	3,060		95,747
Merrill Lynch & Co. Inc.	6,500		387,140
MetLife Inc.	5,230		186,606

SCHEDULES OF INVESTMENTS 41

Schedule of Investments (Continued)

iSHARES^® S&P GLOBAL FINANCIALS SECTOR INDEX FUND

March 31, 2004

Security	Shares		Value
MGIC Investment Corp.		590	$	37,896
Moody’s Corp.		940		66,552
Morgan Stanley		7,390		423,447
National City Corp.		4,040		143,743
North Fork Bancorp Inc.		1,060		44,859
Northern Trust Corp.		1,670		77,805
Plum Creek Timber Co. Inc.		1,320		42,874
PNC Financial Services Group		1,890		104,744
Principal Financial Group Inc.		2,190		78,030
Progressive Corp. (The)		1,430		125,268
ProLogis		1,220		43,761
Providian Financial Corp.1		2,200		28,820
Prudential Financial Inc.		3,670		164,343
Regions Financial Corp.		1,500		54,780
SAFECO Corp.		940		40,580
Schwab (Charles) Corp. (The)		9,320		108,205
Simon Property Group Inc.		1,080		63,115
SLM Corp.		3,180		133,083
SouthTrust Corp.		2,200		72,952
St. Paul Travelers Companies		1,580		63,216
State Street Corp.		2,340		121,984
SunTrust Banks Inc.		1,920		133,843
Synovus Financial Corp.		2,180		53,301
T. Rowe Price Group Inc.		610		32,836
Torchmark Corp.		740		39,805
Travelers Property Casualty Corp. Class B		7,103		122,669
U.S. Bancorp		12,970		358,621
Union Planters Corp.		1,302		38,865
UNUMProvident Corp.		2,360		34,527
Wachovia Corp.		8,990		422,530
Washington Mutual Inc.		6,030		257,541
Wells Fargo & Company		11,460		649,438
XL Capital Ltd. Class A		930		70,717
Zions Bancorporation		700		40,040
				15,132,446
TOTAL COMMON STOCKS (Cost: $26,283,189)				29,990,019
Security	Shares or Principal		Value
SHORT-TERM INVESTMENTS – 13.94%
MONEY MARKET FUNDS – 5.24%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares2,3		1,080,869	$	1,080,869
Barclays Global Investors Funds Prime Money Market Fund, Institutional Shares2,3		388,464		388,464
BlackRock Temp Cash Money Market Fund3		18,183		18,183
Short-Term Investment Co. – Liquid Assets Money Market Portfolio3		90,550		90,550
				1,578,066
FLOATING RATE NOTES – 2.84%
Beta Finance Inc.
1.05%, 05/20/043,4	$	17,657		17,657
1.05%, 09/15/043,4		35,315		35,313
1.06%, 10/12/043,4		17,657		17,657
1.14%, 08/23/043,4		17,657		17,663
CC USA Inc.
1.05%, 04/19/043,4		15,539		15,539
1.06%, 05/24/043,4		35,315		35,314
1.09%, 07/15/043,4		17,657		17,659
1.51%, 02/15/053,4		22,955		22,987
Dorada Finance Inc.
1.04%, 07/01/043		12,360		12,328
1.05%, 05/20/043,4		35,315		35,314
1.24%, 08/09/043		8,829		8,828
1.48%, 01/18/053,4		26,486		26,485
Five Finance Inc.
1.06%, 04/15/043,4		17,657		17,657
HBOS Treasury Services PLC
1.10%, 04/22/053		35,315		35,315
Holmes Financing PLC
1.05%, 04/15/043		3,531		3,531
K2 USA LLC
1.05%, 08/16/043,4		8,829		8,828
1.05%, 09/27/043,4		38,140		38,137
1.06%, 04/13/043		17,657		17,657
1.06%, 05/17/043		17,657		17,657
1.46%, 01/12/053,4		17,657		17,656

42 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® S&P GLOBAL FINANCIALS SECTOR INDEX FUND

March 31, 2004

Security	Principal		Value
Links Finance LLC
1.05%, 06/28/043	$	17,657	$	17,657
1.06%, 05/04/043		17,657		17,657
1.06%, 07/20/043		14,126		14,125
Nationwide Building Society
1.09%, 07/23/043,4		26,486		26,486
1.11%, 12/28/043,4		35,315		35,315
Northern Rock PLC
1.11%, 01/13/053,4		33,549		33,549
Permanent Financing PLC
1.04%, 03/10/053		35,315		35,315
1.05%, 12/10/043		17,657		17,657
Sigma Finance Inc.
1.05%, 07/01/043		17,657		17,656
1.06%, 07/20/043		17,657		17,656
1.09%, 10/07/043		35,315		35,311
1.24%, 08/06/043		8,829		8,828
Tango Finance Corp.
1.05%, 01/18/053,4		15,539		15,537
1.06%, 07/15/043,4		10,594		10,593
1.07%, 02/25/053,4		19,776		19,773
1.10%, 07/06/043,4		10,594		10,594
WhistleJacket Capital LLC
1.05%, 09/15/043,4		17,657		17,656
1.32%, 02/04/053,4		8,829		8,827
White Pine Finance LLC
1.04%, 08/26/043,4		17,657		17,656
1.05%, 11/15/043,4		21,189		21,189
1.06%, 04/20/043,4		17,657		17,657
1.06%, 07/06/043,4		21,189		21,188
				857,064
COMMERCIAL PAPER – 2.63%
Alpine Securitization Corp.
1.03%, 04/14/043		16,598		16,592
1.03%, 04/20/043		17,657		17,648
1.03%, 04/23/043		20,836		20,823
1.03%, 04/26/043		17,657		17,645
Amsterdam Funding Corp.
1.03%, 05/05/043		14,303		14,289
Barton Capital Corp.
1.03%, 04/02/043		18,402		18,402
Blue Ridge Asset Funding Corp.
1.02%, 04/23/043		10,594		10,588
1.03%, 05/21/043		17,657		17,632
Corporate Asset Funding
1.05%, 05/21/043		18,364		18,337
Corporate Receivables Corp.
1.03%, 04/07/043		17,657		17,654
1.04%, 06/03/043		35,315		35,251
Delaware Funding Corp.
1.03%, 04/02/043		17,657		17,657
1.03%, 05/05/043		26,516		26,490
1.03%, 05/21/043		8,829		8,816
Edison Asset Securitization
1.07%, 09/21/043		17,657		17,567
Eureka Securitization Inc.
1.03%, 05/25/043		7,063		7,052
1.04%, 04/14/043		21,189		21,181
Falcon Asset Securitization
1.03%, 04/15/043		21,222		21,213
1.03%, 04/22/043		20,836		20,823
1.03%, 04/30/043		17,657		17,643
Galaxy Funding Inc.
1.05%, 05/17/043		17,657		17,634
Gemini Securitization Corp.
1.03%, 04/20/043		10,602		10,596
1.03%, 04/23/043		20,407		20,395
1.03%, 04/30/043		12,375		12,365
1.03%, 05/24/043		8,829		8,815
1.04%, 04/19/043		8,829		8,824
GIRO Funding US Corp.
1.05%, 05/19/043		8,829		8,816
Jupiter Securitization Corp.
1.03%, 04/16/043		35,315		35,300
1.03%, 04/19/043		47,675		47,651
1.03%, 04/28/043		21,189		21,173
1.03%, 04/30/043		30,079		30,055
Liberty Street Funding Corp.
1.04%, 04/08/043		12,373		12,370
1.05%, 04/05/043		14,303		14,301
Polonius Inc.
1.04%, 05/21/043		20,430		20,400

SCHEDULES OF INVESTMENTS 43

Schedule of Investments (Continued)

iSHARES^® S&P GLOBAL FINANCIALS SECTOR INDEX FUND

March 31, 2004

Security	Principal		Value
Preferred Receivables Funding Corp.
1.03%, 04/19/043	$	37,081	$	37,062
1.04%, 04/23/043		40,612		40,586
1.04%, 05/20/043		8,829		8,816
Receivables Capital Corp.
1.04%, 04/14/043		15,539		15,533
Scaldis Capital LLC
1.05%, 06/30/043		12,643		12,610
Thames Asset Global Securitization No. 1 Inc.
1.03%, 04/19/043		17,657		17,648
Thunder Bay Funding Inc.
1.03%, 04/19/043		11,232		11,226
1.04%, 04/29/043		15,906		15,893
				791,372
TIME DEPOSITS – 2.24%
Toronto-Dominion Bank
1.41%, 11/01/043		26,486		26,485
Abbey National Treasury Services PLC
1.08%, 04/01/043		123,602		123,602
1.33%, 02/10/053		17,657		17,655
1.39%, 02/02/053		17,657		17,655
1.40%, 10/25/043		35,315		35,317
Bank of New York
1.39%, 11/01/043		35,315		35,313
Bank of Nova Scotia
1.24%, 10/07/043		26,486		26,485
1.42%, 10/29/043		26,486		26,487
Canadian Imperial Bank of Commerce
1.24%, 10/07/043		26,486		26,484
1.38%, 11/22/043		8,829		8,829
1.40%, 10/29/043		35,315		35,314
National City Bank (Cleveland, Ohio)
1.02%, 04/01/043		52,972		52,972
Toronto-Dominion Bank
1.04%, 06/22/043		8,829		8,829
1.22%, 03/23/053		61,801		61,791
1.34%, 02/10/053		14,126		14,124
UBS Finance (Delaware)
1.06%, 04/01/043		70,630		70,630
1.10%, 09/08/043		35,315		35,142
1.11%, 12/17/043		52,972		52,548
				675,662
REPURCHASE AGREEMENTS – 0.70%
Bank of America, NA
1.06%, 04/01/043		70,630		70,630
Goldman, Sachs & Co.
1.08%, 04/01/043		141,260		141,260
				211,890
U.S. GOVERNMENT AGENCY NOTES – 0.29%
Federal Home Loan Mortgage Corporation
1.15%, 05/12/043		26,486		26,452
1.28%, 08/19/043		14,126		14,056
Federal National Mortgage Association
1.28%, 08/20/043		45,909		45,679
				86,187
TOTAL SHORT-TERM INVESTMENTS (Cost: $4,200,241)				4,200,241
TOTAL INVESTMENTS IN SECURITIES – 113.48% (Cost: $30,483,430)				34,190,260
Other Assets, Less Liabilities – (13.48%)				(4,061,164	)
NET ASSETS – 100.00%			$	30,129,096

¹ Non-income earning securities.

² Issuer is an affiliate of the Fund’s investment advisor. See Note 2.

³ All or a portion of this security represents investments of securities lending collateral.

⁴ Security exempt from registration under Rule 144A of the Securities Act of 1933.

These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

See notes to financial statements.

44 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® S&P GLOBAL HEALTHCARE SECTOR INDEX FUND

March 31, 2004

Security	Shares	Value
COMMON STOCKS – 99.78%
AUSTRALIA – 0.28%
CSL Ltd.	13,384	$	214,374
Mayne Group Ltd.	57,970		149,589
			363,963
CANADA – 0.14%
Biovail Corp.1	960		14,938
MDS Inc.	9,744		163,111
			178,049
DENMARK – 0.61%
Novo Nordisk A/S Class B	17,248		800,014
			800,014
FRANCE – 4.21%
Aventis SA	46,256		3,555,592
Essilor International SA	6,384		388,264
Sanofi-Synthelabo SA	23,912		1,561,837
			5,505,693
GERMANY – 0.82%
Altana AG	5,096		315,253
Fresenius Medical Care AG	2,576		169,869
Schering AG	12,432		588,344
			1,073,466
IRELAND – 0.42%
Elan Corp. PLC1	26,208		544,298
			544,298
JAPAN – 3.97%
Daiichi Pharmaceutical Co. Ltd.	16,800		326,198
Eisai Co. Ltd.	16,800		455,385
Fujisawa Pharmaceutical Co. Ltd.	22,400		538,280
Sankyo Co. Ltd.	28,000		609,603
Takeda Chemical Industries Ltd.	50,400		2,247,859
Terumo Corp.	11,200		243,303
Yamanouchi Pharmaceutical Co. Ltd.	22,400		770,818
			5,191,446
SWITZERLAND – 9.06%
Novartis AG	166,432		7,067,957
Roche Holding AG Bearer	1,680		225,109
Roche Holding AG Genusschein	46,536		4,545,787
			11,838,853
UNITED KINGDOM – 11.04%
Amersham PLC	30,184		444,344
AstraZeneca PLC	112,672		5,224,483
GlaxoSmithKline PLC	399,616		7,843,758
Shire Pharmaceuticals Group PLC1	33,656		328,448
Smith & Nephew PLC	58,632		577,038
			14,418,071
UNITED STATES – 69.23%
Abbott Laboratories	104,272		4,285,579
Aetna Inc.	10,416		934,523
Allergan Inc.	9,128		768,212
AmerisourceBergen Corp.	7,840		428,691
Amgen Inc.1	85,628		4,980,981
Anthem Inc.1	9,912		898,424
Applera Corp. – Applied Biosystems Group	5,750		113,735
Bard (C.R.) Inc.	3,864		377,281
Bausch & Lomb Inc.	3,584		214,932
Baxter International Inc.	41,328		1,276,622
Becton, Dickinson & Co.	17,192		833,468
Biogen Idec Inc.1	21,958		1,220,865
Biomet Inc.	17,696		678,819
Boston Scientific Corp.1	54,152		2,294,962
Bristol-Myers Squibb Co.	129,304		3,133,036
Cardinal Health Inc.	29,400		2,025,660
Caremark Rx Inc.1	20,776		690,802
Chiron Corp.1	12,600		554,526
CIGNA Corp.	2,781		164,135
Express Scripts Inc.1	5,488		409,350
Forest Laboratories Inc.1	24,696		1,768,728
Genzyme Corp. – General Division1	15,120		711,245
Guidant Corp.	20,832		1,320,124
HCA Inc.	33,488		1,360,283
Health Management Associates Inc. Class A	17,416		404,225
Humana Inc.1	11,424		217,284
IMS Health Inc.	16,688		388,163
Johnson & Johnson	197,232		10,003,607
King Pharmaceuticals Inc.1	17,528		295,172
Lilly (Eli) & Co.	74,536		4,986,458
Manor Care Inc.	5,936		209,481

SCHEDULES OF INVESTMENTS 45

Schedule of Investments (Continued)

iSHARES^® S&P GLOBAL HEALTHCARE SECTOR INDEX FUND

March 31, 2004

Security	Shares or Principal		Value
McKesson Corp.		20,272	$	609,984
Medco Health Solutions Inc.1		6,150		209,100
MedImmune Inc.1		7,604		175,500
Medtronic Inc.		80,920		3,863,930
Merck & Co. Inc.		147,672		6,525,626
Millipore Corp.1		3,584		184,146
Monsanto Co.		1,015		37,220
Pfizer Inc.		500,248		17,533,692
Quest Diagnostics Inc.		7,064		585,111
Schering-Plough Corp.		98,168		1,592,285
St. Jude Medical Inc.1		11,872		855,971
Stryker Corp.		13,552		1,199,759
Tenet Healthcare Corp.1		33,208		370,601
UnitedHealth Group Inc.		42,056		2,710,089
Watson Pharmaceuticals Inc.1		7,336		313,907
WellPoint Health Networks Inc.1		10,360		1,178,139
Wyeth		89,040		3,343,452
Zimmer Holdings Inc.1		16,464		1,214,714
				90,452,599
TOTAL COMMON STOCKS (Cost: $131,502,163)				130,366,452
SHORT-TERM INVESTMENTS – 10.15%
MONEY MARKET FUNDS – 3.80%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares2,3		3,394,800		3,394,800
Barclays Global Investors Funds Prime Money Market Fund, Institutional Shares2,3		1,229,093		1,229,093
BlackRock Temp Cash Money Market Fund2		57,531		57,531
Short-Term Investment Co. – Liquid Assets Money Market Portfolio2		286,497		286,497
				4,967,921
FLOATING RATE NOTES – 2.07%
Beta Finance Inc.
1.05%, 05/20/042,4		55,868		55,867
1.05%, 09/15/042,4		111,736		111,731
1.06%, 10/12/042,4		55,868		55,865
Security	Principal		Value
1.14%, 08/23/042,4	$	55,868	$	55,887
CC USA Inc.
1.05%, 04/19/042,4		49,164		49,164
1.06%, 05/24/042,4		111,736		111,734
1.09%, 07/15/042,4		55,868		55,874
1.51%, 02/15/052,4		72,628		72,729
Dorada Finance Inc.
1.04%, 07/01/042		39,108		39,005
1.05%, 05/20/042,4		111,736		111,734
1.24%, 08/09/042		27,934		27,932
1.48%, 01/18/052,4		83,802		83,799
Five Finance Inc.
1.06%, 04/15/042,4		55,868		55,868
HBOS Treasury Services PLC
1.10%, 04/22/052		111,736		111,736
Holmes Financing PLC
1.05%, 04/15/042		11,174		11,174
K2 USA LLC
1.05%, 08/16/042,4		27,934		27,932
1.05%, 09/27/042,4		120,675		120,666
1.06%, 04/13/042		55,868		55,868
1.06%, 05/17/042		55,868		55,868
1.46%, 01/12/052,4		55,868		55,864
Links Finance LLC
1.05%, 06/28/042		55,868		55,866
1.06%, 05/04/042		55,868		55,868
1.06%, 07/20/042		44,694		44,692
Nationwide Building Society
1.09%, 07/23/042,4		83,802		83,802
1.11%, 12/28/042,4		111,736		111,736
Northern Rock PLC
1.11%, 01/13/052,4		106,149		106,149
Permanent Financing PLC
1.04%, 03/10/052		111,736		111,736
1.05%, 12/10/042		55,868		55,868
Sigma Finance Inc.
1.05%, 07/01/042		55,868		55,864
1.06%, 07/20/042		55,868		55,865
1.09%, 10/07/042		111,736		111,724
1.24%, 08/06/042		27,934		27,933

46 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® S&P GLOBAL HEALTHCARE SECTOR INDEX FUND

March 31, 2004

Security	Principal		Value
Tango Finance Corp.
1.05%, 01/18/052,4	$	49,164	$	49,160
1.06%, 07/15/042,4		33,521		33,518
1.07%, 02/25/052,4		62,572		62,561
1.10%, 07/06/042,4		33,521		33,520
WhistleJacket Capital LLC
1.05%, 09/15/042,4		55,868		55,863
1.32%, 02/04/052,4		27,934		27,929
White Pine Finance LLC
1.04%, 08/26/042,4		55,868		55,864
1.05%, 11/15/042,4		67,041		67,041
1.06%, 04/20/042,4		55,868		55,868
1.06%, 07/06/042,4		67,041		67,040
				2,711,764
COMMERCIAL PAPER – 1.92%
Alpine Securitization Corp.
1.03%, 04/14/042		52,516		52,496
1.03%, 04/20/042		55,868		55,838
1.03%, 04/23/042		65,924		65,883
1.03%, 04/26/042		55,868		55,828
Amsterdam Funding Corp.
1.03%, 05/05/042		45,253		45,209
Barton Capital Corp.
1.03%, 04/02/042		58,224		58,223
Blue Ridge Asset Funding Corp.
1.02%, 04/23/042		33,521		33,500
1.03%, 05/21/042		55,868		55,788
Corporate Asset Funding
1.05%, 05/21/042		58,103		58,018
Corporate Receivables Corp.
1.03%, 04/07/042		55,868		55,858
1.04%, 06/03/042		111,736		111,532
Delaware Funding Corp.
1.03%, 04/02/042		55,868		55,866
1.03%, 05/05/042		83,895		83,813
1.03%, 05/21/042		27,934		27,894
Edison Asset Securitization
1.07%, 09/21/042		55,868		55,581
Eureka Securitization Inc.
1.03%, 05/25/042		22,347		22,313
1.04%, 04/14/042		67,041		67,016
Falcon Asset Securitization
1.03%, 04/15/042		67,145		67,118
1.03%, 04/22/042		65,924		65,884
1.03%, 04/30/042		55,868		55,822
Galaxy Funding Inc.
1.05%, 05/17/042		55,868		55,793
Gemini Securitization Corp.
1.03%, 04/20/042		33,543		33,525
1.03%, 04/23/042		64,569		64,529
1.03%, 04/30/042		39,156		39,123
1.03%, 05/24/042		27,934		27,892
1.04%, 04/19/042		27,934		27,919
GIRO Funding US Corp.
1.05%, 05/19/042		27,934		27,895
Jupiter Securitization Corp.
1.03%, 04/16/042		111,736		111,688
1.03%, 04/19/042		150,843		150,765
1.03%, 04/28/042		67,041		66,990
1.03%, 04/30/042		95,171		95,092
Liberty Street Funding Corp.
1.04%, 04/08/042		39,148		39,140
1.05%, 04/05/042		45,253		45,248
Polonius Inc.
1.04%, 05/21/042		64,639		64,546
Preferred Receivables Funding Corp.
1.03%, 04/19/042		117,323		117,262
1.04%, 04/23/042		128,496		128,414
1.04%, 05/20/042		27,934		27,895
Receivables Capital Corp.
1.04%, 04/14/042		49,164		49,145
Scaldis Capital LLC
1.05%, 06/30/042		40,001		39,897
Thames Asset Global Securitization No. 1 Inc.
1.03%, 04/19/042		55,868		55,839
Thunder Bay Funding Inc.
1.03%, 04/19/042		35,538		35,519
1.04%, 04/29/042		50,326		50,285
				2,503,881

SCHEDULES OF INVESTMENTS 47

Schedule of Investments (Continued)

iSHARES^® S&P GLOBAL HEALTHCARE SECTOR INDEX FUND

March 31, 2004

Security	Principal		Value
TIME DEPOSITS – 1.64%
Toronto-Dominion Bank
1.41%, 11/01/042	$	83,802	$	83,797
Abbey National Treasury Services PLC
1.08%, 04/01/042		391,075		391,075
1.33%, 02/10/052		55,868		55,861
1.39%, 02/02/052		55,868		55,861
1.40%, 10/25/042		111,736		111,726
Bank of New York
1.39%, 11/01/042		111,736		111,729
Bank of Nova Scotia
1.24%, 10/07/042		83,802		83,797
1.42%, 10/29/042		83,802		83,805
Canadian Imperial Bank of Commerce
1.24%, 10/07/042		83,802		83,795
1.38%, 11/22/042		27,934		27,936
1.40%, 10/29/042		111,736		111,734
National City Bank (Cleveland, Ohio)
1.02%, 04/01/042		167,604		167,604
Toronto-Dominion Bank
1.04%, 06/22/042		27,934		27,934
1.22%, 03/23/052		195,538		195,504
1.34%, 02/10/052		44,694		44,689
UBS Finance (Delaware)
1.06%, 04/01/042		223,472		223,472
1.10%, 09/08/042		111,736		111,190
1.11%, 12/17/042		167,604		166,252
				2,137,761
REPURCHASE AGREEMENTS – 0.51%
Bank of America, NA
1.06%, 04/01/042		223,472		223,472
Goldman, Sachs & Co.
1.08%, 04/01/042		446,943		446,943
				670,415
U.S. GOVERNMENT AGENCY NOTES – 0.21%
Federal Home Loan Mortgage Corporation
1.15%, 05/12/042		83,802		83,692
1.28%, 08/19/042		44,694		44,472
Federal National Mortgage Association
1.28%, 08/20/042		145,256		144,529
				272,693
TOTAL SHORT-TERM INVESTMENTS (Cost: $13,264,435)				13,264,435
TOTAL INVESTMENTS IN SECURITIES – 109.93% (Cost: $144,766,598)				143,630,887
Other Assets, Less Liabilities – (9.93%)				(12,974,932	)
NET ASSETS – 100.00%			$	130,655,955

¹ Non-income earning securities.

² All or a portion of this security represents investments of securities lending collateral.

³ Issuer is an affiliate of the Fund’s investment advisor. See Note 2.

⁴ Security exempt from registration under Rule 144A of the Securities Act of 1933.

These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

See notes to financial statements.

48 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® S&P GLOBAL TECHNOLOGY SECTOR INDEX FUND

March 31, 2004

Security	Shares	Value
COMMON STOCKS – 99.86%
CANADA – 1.44%
ATI Technologies Inc.1	3,069	$	49,809
Celestica Inc.1	2,420		39,313
Cognos Inc.1	990		30,862
Nortel Networks Corp.1	48,587		285,034
			405,018
FINLAND – 4.08%
Nokia OYJ	55,759		1,142,951
			1,142,951
FRANCE – 1.73%
Alcatel SA1	13,794		217,657
Cap Gemini SA1	1,298		49,496
Dassault Systemes SA	451		18,733
Sagem SA	280		31,177
STMicroelectronics NV	7,150		168,528
			485,591
GERMANY – 1.84%
Epcos AG1	693		15,704
Infineon Technologies AG1	6,754		98,770
SAP AG	2,530		399,988
			514,462
JAPAN – 10.25%
Advantest Corp.	1,100		90,191
Canon Inc.	11,000		569,904
Fujitsu Ltd.1	22,000		140,626
Hitachi Ltd.	33,000		255,981
Hoya Corp.	1,100		107,320
Konica Minolta Holdings Inc.	5,500		78,666
Kyocera Corp.	2,200		184,822
Murata Manufacturing Co. Ltd.	3,300		209,670
NEC Corp.	22,000		181,016
Nintendo Co. Ltd.	1,100		111,126
NTT Data Corp.	22		93,469
Ricoh Corp. Ltd.	11,000		226,270
Rohm Co. Ltd.	1,100		142,423
Softbank Corp.1	2,200		102,985
TDK Corp.	1,100		84,058
Tokyo Electron Ltd.	2,200		146,970
Toshiba Corp.	33,000		149,719
			2,875,216
NETHERLANDS – 0.37%
ASML Holding NV1	5,577		102,187
			102,187
SOUTH KOREA – 2.68%
Samsung Electronics Co. Ltd. GDR	3,037		751,657
			751,657
SWEDEN – 1.80%
Telefonaktiebolaget LM Ericsson Class B1	182,171		504,870
			504,870
TAIWAN – 1.39%
Taiwan Semiconductor Manufacturing Co. Ltd. ADR1	25,744		268,767
United Microelectronics Corp. ADR1	23,320		121,264
			390,031
UNITED KINGDOM – 0.62%
ARM Holdings PLC	11,572		25,308
Dimension Data Holdings PLC1	15,422		10,274
LogicaCMG PLC	10,087		47,505
Misys PLC	7,337		27,744
Sage Group PLC	14,432		47,809
Spirent PLC1	10,802		14,989
			173,629
UNITED STATES – 73.66%
ADC Telecommunications Inc.1	9,966		28,901
Adobe Systems Inc.	2,651		104,529
Advanced Micro Devices Inc.1	4,455		72,305
Agilent Technologies Inc.1	5,599		177,096
Altera Corp.1	4,092		83,681
Analog Devices Inc.	4,180		200,682
Andrew Corp.1	1,078		18,865
Apple Computer Inc.1	4,565		123,483
Applied Materials Inc.1	19,272		412,035
Applied Micro Circuits Corp.1	3,916		22,517
Autodesk Inc.	1,386		43,825
Automatic Data Processing Inc.	6,600		277,200
Avaya Inc.1	5,115		81,226
BMC Software Inc.1	2,442		47,741

SCHEDULES OF INVESTMENTS 49

Schedule of Investments (Continued)

iSHARES^® S&P GLOBAL TECHNOLOGY SECTOR INDEX FUND

March 31, 2004

Security	Shares	Value
Broadcom Corp. Class A1	3,333	$	130,554
CIENA Corp.1	5,104		25,367
Cisco Systems Inc.1	80,311		1,888,915
Citrix Systems Inc.1	1,826		39,478
Computer Associates International Inc.	6,699		179,935
Computer Sciences Corp.1	2,134		86,064
Compuware Corp.1	4,719		35,157
Comverse Technology Inc.1	2,365		42,901
Convergys Corp.1	1,650		25,080
Corning Inc.1	14,839		165,900
Dell Inc.1	30,239		1,016,635
Electronic Arts Inc.1	3,278		176,881
EMC Corp.1	27,918		379,964
First Data Corp.	10,527		443,818
Fiserv Inc.1	2,420		86,563
Gateway Inc.1	4,466		23,580
Hewlett-Packard Co.	35,904		820,047
Intel Corp.	75,790		2,061,488
International Business Machines Corp.	20,295		1,863,893
Intuit Inc.1	2,299		103,179
Jabil Circuit Inc.1	2,464		72,516
JDS Uniphase Corp.1	16,863		68,632
KLA-Tencor Corp.1	2,387		120,185
Lexmark International Inc.1	1,463		134,596
Linear Technology Corp.	3,641		134,790
LSI Logic Corp.1	4,554		42,534
Lucent Technologies Inc.1	47,344		194,584
Maxim Integrated Products Inc.	3,762		177,153
Mercury Interactive Corp.1	1,045		46,816
Micron Technology Inc.1	7,656		127,932
Microsoft Corp.	126,621		3,161,726
Molex Inc.	2,255		68,529
Motorola Inc.	26,675		469,480
National Semiconductor Corp.1	2,244		99,701
NCR Corp.1	1,199		52,828
Network Appliance Inc.1	4,213		90,369
Novell Inc.1	4,565		51,950
Novellus Systems Inc.1	1,837		58,398
NVIDIA Corp.1	1,727		45,748
Oracle Corp.1	60,401		725,416
Parametric Technology Corp.1	3,388		15,314
Paychex Inc.	4,532		161,339
PeopleSoft Inc.1	4,400		81,356
PerkinElmer Inc.	1,309		27,083
PMC-Sierra Inc.1	2,145		36,401
QLogic Corp.1	1,188		39,216
QUALCOMM Inc.	9,218		612,260
Sabre Holdings Corp.	2,057		51,034
Sanmina-SCI Corp.1	6,336		69,759
Scientific-Atlanta Inc.	1,573		50,871
Siebel Systems Inc.1	5,786		66,597
Solectron Corp.1	10,230		56,572
Sun Microsystems Inc.1	37,598		156,408
SunGard Data Systems Inc.1	3,322		91,023
Symantec Corp.1	3,630		168,069
Symbol Technologies Inc.	2,937		40,531
Tektronix Inc.	1,221		39,939
Tellabs Inc.1	5,225		45,092
Teradyne Inc.1	2,255		53,737
Texas Instruments Inc.	20,229		591,091
Thermo Electron Corp.1	2,343		66,260
Unisys Corp.1	4,059		57,962
Veritas Software Corp.1	5,071		136,461
Waters Corp.1	1,639		66,937
Xerox Corp.1	9,108		132,704
Xilinx Inc.1	3,740		142,120
Yahoo! Inc.1	7,601		369,334
			20,658,838
TOTAL COMMON STOCKS (Cost: $27,267,104)			28,004,450
SHORT-TERM INVESTMENTS – 14.64%
MONEY MARKET FUNDS – 5.48%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares2,3	1,050,541		1,050,541
Barclays Global Investors Funds Prime Money Market Fund, Institutional Shares2,3	380,664		380,664
BlackRock Temp Cash Money Market Fund2	17,818		17,818

50 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® S&P GLOBAL TECHNOLOGY SECTOR INDEX FUND

March 31, 2004

Security	Shares or Principal		Value
Short-Term Investment Co. – Liquid Assets Money Market Portfolio2		88,732	$	88,732
				1,537,755
FLOATING RATE NOTES – 2.99%
Beta Finance Inc.
1.05%, 05/20/042,4	$	17,303		17,303
1.05%, 09/15/042,4		34,606		34,604
1.06%, 10/12/042,4		17,303		17,302
1.14%, 08/23/042,4		17,303		17,309
CC USA Inc.
1.05%, 04/19/042,4		15,227		15,227
1.06%, 05/24/042,4		34,606		34,605
1.09%, 07/15/042,4		17,303		17,305
1.51%, 02/15/052,4		22,494		22,525
Dorada Finance Inc.
1.04%, 07/01/042		12,112		12,080
1.05%, 05/20/042,4		34,606		34,605
1.24%, 08/09/042		8,651		8,651
1.48%, 01/18/052,4		25,954		25,953
Five Finance Inc.
1.06%, 04/15/042,4		17,303		17,303
HBOS Treasury Services PLC
1.10%, 04/22/052		34,606		34,606
Holmes Financing PLC
1.05%, 04/15/042		3,461		3,461
K2 USA LLC
1.05%, 08/16/042,4		8,651		8,651
1.05%, 09/27/042,4		37,374		37,372
1.06%, 04/13/042		17,303		17,303
1.06%, 05/17/042		17,303		17,303
1.46%, 01/12/052,4		17,303		17,302
Links Finance LLC
1.05%, 06/28/042		17,303		17,302
1.06%, 05/04/042		17,303		17,303
1.06%, 07/20/042		13,842		13,842
Nationwide Building Society
1.09%, 07/23/042,4		25,954		25,954
1.11%, 12/28/042,4		34,606		34,606
Northern Rock PLC
1.11%, 01/13/052,4		32,876		32,876
Security	Principal		Value
Permanent Financing PLC
1.04%, 03/10/052	$	34,606	$	34,606
1.05%, 12/10/042		17,303		17,303
Sigma Finance Inc.
1.05%, 07/01/042		17,303		17,302
1.06%, 07/20/042		17,303		17,302
1.09%, 10/07/042		34,606		34,602
1.24%, 08/06/042		8,651		8,651
Tango Finance Corp.
1.05%, 01/18/052,4		15,227		15,225
1.06%, 07/15/042,4		10,382		10,381
1.07%, 02/25/052,4		19,379		19,376
1.10%, 07/06/042,4		10,382		10,381
WhistleJacket Capital LLC
1.05%, 09/15/042,4		17,303		17,301
1.32%, 02/04/052,4		8,651		8,650
White Pine Finance LLC
1.04%, 08/26/042,4		17,303		17,302
1.05%, 11/15/042,4		20,764		20,764
1.06%, 04/20/042,4		17,303		17,303
1.06%, 07/06/042,4		20,764		20,763
				839,865
COMMERCIAL PAPER – 2.77%
Alpine Securitization Corp.
1.03%, 04/14/042		16,265		16,259
1.03%, 04/20/042		17,303		17,294
1.03%, 04/23/042		20,417		20,405
1.03%, 04/26/042		17,303		17,291
Amsterdam Funding Corp.
1.03%, 05/05/042		14,015		14,002
Barton Capital Corp.
1.03%, 04/02/042		18,033		18,032
Blue Ridge Asset Funding Corp.
1.02%, 04/23/042		10,382		10,375
1.03%, 05/21/042		17,303		17,278
Corporate Asset Funding
1.05%, 05/21/042		17,995		17,969
Corporate Receivables Corp.
1.03%, 04/07/042		17,303		17,300
1.04%, 06/03/042		34,606		34,543

SCHEDULES OF INVESTMENTS 51

Schedule of Investments (Continued)

iSHARES^® S&P GLOBAL TECHNOLOGY SECTOR INDEX FUND

March 31, 2004

Security	Principal		Value
Delaware Funding Corp.
1.03%, 04/02/042	$	17,303	$	17,302
1.03%, 05/05/042		25,983		25,958
1.03%, 05/21/042		8,651		8,639
Edison Asset Securitization
1.07%, 09/21/042		17,303		17,214
Eureka Securitization Inc.
1.03%, 05/25/042		6,921		6,910
1.04%, 04/14/042		20,764		20,755
Falcon Asset Securitization
1.03%, 04/15/042		20,796		20,787
1.03%, 04/22/042		20,417		20,405
1.03%, 04/30/042		17,303		17,288
Galaxy Funding Inc.
1.05%, 05/17/042		17,303		17,280
Gemini Securitization Corp.
1.03%, 04/20/042		10,389		10,383
1.03%, 04/23/042		19,998		19,985
1.03%, 04/30/042		12,127		12,117
1.03%, 05/24/042		8,651		8,638
1.04%, 04/19/042		8,651		8,647
GIRO Funding US Corp.
1.05%, 05/19/042		8,651		8,639
Jupiter Securitization Corp.
1.03%, 04/16/042		34,606		34,592
1.03%, 04/19/042		46,718		46,694
1.03%, 04/28/042		20,764		20,747
1.03%, 04/30/042		29,476		29,451
Liberty Street Funding Corp.
1.04%, 04/08/042		12,125		12,122
1.05%, 04/05/042		14,015		14,014
Polonius Inc.
1.04%, 05/21/042		20,019		19,991
Preferred Receivables Funding Corp.
1.03%, 04/19/042		36,336		36,317
1.04%, 04/23/042		39,797		39,771
1.04%, 05/20/042		8,651		8,639
Receivables Capital Corp.
1.04%, 04/14/042		15,227		15,221
Scaldis Capital LLC
1.05%, 06/30/042		12,389		12,356
Thames Asset Global Securitization No. 1 Inc.
1.03%, 04/19/042		17,303		17,294
Thunder Bay Funding Inc.
1.03%, 04/19/042		11,006		11,001
1.04%, 04/29/042		15,586		15,574
				775,479
TIME DEPOSITS – 2.36%
Toronto-Dominion Bank
1.41%, 11/01/042		25,954		25,953
Abbey National Treasury Services PLC
1.08%, 04/01/042		121,120		121,120
1.33%, 02/10/052		17,303		17,301
1.39%, 02/02/052		17,303		17,301
1.40%, 10/25/042		34,606		34,603
Bank of New York
1.39%, 11/01/042		34,606		34,604
Bank of Nova Scotia
1.24%, 10/07/042		25,954		25,953
1.42%, 10/29/042		25,954		25,956
Canadian Imperial Bank of Commerce
1.24%, 10/07/042		25,954		25,952
1.38%, 11/22/042		8,651		8,652
1.40%, 10/29/042		34,606		34,605
National City Bank (Cleveland, Ohio)
1.02%, 04/01/042		51,909		51,909
Toronto-Dominion Bank
1.04%, 06/22/042		8,651		8,651
1.22%, 03/23/052		60,560		60,550
1.34%, 02/10/052		13,842		13,841
UBS Finance (Delaware)
1.06%, 04/01/042		69,212		69,212
1.10%, 09/08/042		34,606		34,437
1.11%, 12/17/042		51,909		51,493
				662,093

52 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® S&P GLOBAL TECHNOLOGY SECTOR INDEX FUND

March 31, 2004

Security	Principal		Value
REPURCHASE AGREEMENTS – 0.74%
Bank of America, NA
1.06%, 04/01/042	$	69,212	$	69,212
Goldman, Sachs & Co.
1.08%, 04/01/042		138,423		138,423
				207,635
U.S. GOVERNMENT AGENCY NOTES – 0.30%
Federal Home Loan Mortgage Corporation
1.15%, 05/12/042		25,954		25,920
1.28%, 08/19/042		13,842		13,773
Federal National Mortgage Association
1.28%, 08/20/042		44,988		44,761
				84,454
TOTAL SHORT-TERM INVESTMENTS (Cost: $4,107,281)				4,107,281
TOTAL INVESTMENTS IN SECURITIES – 114.50% (Cost: $31,374,385)				32,111,731
Other Assets, Less Liabilities – (14.50%)				(4,067,131	)
NET ASSETS – 100.00%			$	28,044,600

¹ Non-income earning securities.

² All or a portion of this security represents investments of securities lending collateral.

³ Issuer is an affiliate of the Fund’s investment advisor. See Note 2.

⁴ Security exempt from registration under Rule 144A of the Securities Act of 1933.

These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 53

Schedule of Investments

iSHARES^® S&P GLOBAL TELECOMMUNICATIONS SECTOR INDEX FUND

March 31, 2004

Security	Shares	Value
COMMON STOCKS – 99.75%
AUSTRALIA – 2.16%
Telstra Corp. Ltd.	129,474	$	448,765
			448,765
BRAZIL – 0.53%
Brasil Telecom Participacoes SA ADR	968		33,057
Embratel Participacoes SA ADR	1,154		17,148
Tele Norte Leste Participacoes SA ADR	4,680		60,746
			110,951
CANADA – 2.46%
BCE Inc.	19,026		399,412
TELUS Corp.	6,228		110,415
			509,827
DENMARK – 0.46%
TDC A/S ADR	5,175		95,220
			95,220
FRANCE – 3.44%
Bouygues SA	4,419		152,054
France Telecom SA1	21,942		561,401
			713,455
GERMANY – 4.19%
Deutsche Telekom AG1	48,411		869,777
			869,777
GREECE – 0.41%
Hellenic Telecommunications Organization SA	11,772		84,758
			84,758
HONG KONG – 1.67%
China Mobil Ltd.	99,000		293,527
China Unicom Ltd.	58,000		52,483
			346,010
ITALY – 4.64%
Telecom Italia Mobile SpA	74,718		422,376
Telecom Italia SpA1	172,224		539,698
			962,074
JAPAN – 8.85%
Nippon Telegraph & Telephone Corp.	180		1,020,810
NTT DoCoMo Inc.	369		815,783
			1,836,593
MEXICO – 2.53%
America Movil SA de CV ADR Series L	7,335		283,498
Telefonos de Mexico ADR	6,899		240,844
			524,342
NETHERLANDS – 1.65%
Equant NV1	3,006		28,999
Koninklijke KPN NV1	40,086		312,812
			341,811
NEW ZEALAND – 0.40%
Telecom Corp. of New Zealand Ltd.	21,263		82,303
			82,303
PORTUGAL – 1.25%
Portugal Telecom SGPS ADR	23,113		259,097
			259,097
SOUTH KOREA – 0.69%
SK Telecom Co. Ltd. ADR	6,705		142,817
			142,817
SPAIN – 6.77%
Telefonica SA	92,864		1,404,824
			1,404,824
SWEDEN – 0.69%
TeliaSonera AB ADR	6,615		142,223
			142,223
SWITZERLAND – 0.82%
Swisscom AG ADR	5,175		170,672
			170,672
UNITED KINGDOM – 20.38%
BT Group PLC	174,222		566,743
Cable & Wireless PLC1	48,555		115,785
mm02 PLC1	175,284		323,756
Vodafone Group PLC	1,361,970		3,222,737
			4,229,021
UNITED STATES – 35.76%
Alltel Corp.	6,237		311,164
AT&T Corp.	15,680		306,858
AT&T Wireless Services Inc.1	55,107		750,006
BellSouth Corp.	36,891		1,021,512
CenturyTel Inc.	2,925		80,408

54 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® S&P GLOBAL TELECOMMUNICATIONS SECTOR INDEX FUND

March 31, 2004

Security	Shares or Principal		Value
Citizens Communications Co.1		5,751	$	74,418
Nextel Communications Inc. Class A1		22,203		549,080
Qwest Communications International Inc.1		34,524		148,798
SBC Communications Inc.		66,258		1,625,971
Sprint Corp. (FON Group)		18,009		331,906
Sprint Corp. (PCS Group)1		20,583		189,364
Verizon Communications Inc.		55,557		2,030,053
				7,419,538
TOTAL COMMON STOCKS (Cost: $21,142,627)				20,694,078
SHORT-TERM INVESTMENTS – 16.42%
MONEY MARKET FUNDS – 6.12%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares2,3		864,249		864,249
Barclays Global Investors Funds Prime Money Market Fund, Institutional Shares2,3		316,636		316,636
BlackRock Temp Cash Money Market Fund2		14,821		14,821
Short-Term Investment Co. – Liquid Assets Money Market Portfolio2		73,807		73,807
				1,269,513
FLOATING RATE NOTES – 3.37%
Beta Finance Inc.
1.05%, 05/20/042,4	$	14,393		14,392
1.05%, 09/15/042,4		28,785		28,784
1.06%, 10/12/042,4		14,393		14,392
1.14%, 08/23/042,4		14,393		14,397
CC USA Inc.
1.05%, 04/19/042,4		12,665		12,665
1.06%, 05/24/042,4		28,785		28,785
1.09%, 07/15/042,4		14,393		14,394
1.51%, 02/15/052,4		18,710		18,736
Security	Principal		Value
Dorada Finance Inc.
1.04%, 07/01/042	$	10,075	$	10,048
1.05%, 05/20/042,4		28,785		28,785
1.24%, 08/09/042		7,196		7,196
1.48%, 01/18/052,4		21,589		21,588
Five Finance Inc.
1.06%, 04/15/042,4		14,393		14,393
HBOS Treasury Services PLC
1.10%, 04/22/052		28,785		28,785
Holmes Financing PLC
1.05%, 04/15/042		2,879		2,879
K2 USA LLC
1.05%, 08/16/042,4		7,196		7,196
1.05%, 09/27/042,4		31,088		31,086
1.06%, 04/13/042		14,393		14,393
1.06%, 05/17/042		14,393		14,392
1.46%, 01/12/052,4		14,393		14,391
Links Finance LLC
1.05%, 06/28/042		14,393		14,392
1.06%, 05/04/042		14,393		14,392
1.06%, 07/20/042		11,514		11,513
Nationwide Building Society
1.09%, 07/23/042,4		21,589		21,589
1.11%, 12/28/042,4		28,785		28,785
Northern Rock PLC
1.11%, 01/13/052,4		27,346		27,346
Permanent Financing PLC
1.04%, 03/10/052		28,785		28,785
1.05%, 12/10/042		14,393		14,393
Sigma Finance Inc.
1.05%, 07/01/042		14,393		14,392
1.06%, 07/20/042		14,393		14,392
1.09%, 10/07/042		28,785		28,782
1.24%, 08/06/042		7,196		7,196
Tango Finance Corp.
1.05%, 01/18/052,4		12,665		12,664
1.06%, 07/15/042,4		8,636		8,635
1.07%, 02/25/052,4		16,120		16,117
1.10%, 07/06/042,4		8,636		8,635

SCHEDULES OF INVESTMENTS 55

Schedule of Investments (Continued)

iSHARES^® S&P GLOBAL TELECOMMUNICATIONS SECTOR INDEX FUND

March 31, 2004

Security	Principal		Value
WhistleJacket Capital LLC
1.05%, 09/15/042,4	$	14,393	$	14,391
1.32%, 02/04/052,4		7,196		7,195
White Pine Finance LLC
1.04%, 08/26/042,4		14,393		14,392
1.05%, 11/15/042,4		17,271		17,271
1.06%, 04/20/042,4		14,393		14,393
1.06%, 07/06/042,4		17,271		17,271
				698,598
COMMERCIAL PAPER – 3.11%
Alpine Securitization Corp.
1.03%, 04/14/042		13,529		13,524
1.03%, 04/20/042		14,393		14,385
1.03%, 04/23/042		16,983		16,973
1.03%, 04/26/042		14,393		14,382
Amsterdam Funding Corp.
1.03%, 05/05/042		11,658		11,647
Barton Capital Corp.
1.03%, 04/02/042		15,000		14,999
Blue Ridge Asset Funding Corp.
1.02%, 04/23/042		8,636		8,630
1.03%, 05/21/042		14,393		14,372
Corporate Asset Funding
1.05%, 05/21/042		14,968		14,947
Corporate Receivables Corp.
1.03%, 04/07/042		14,393		14,390
1.04%, 06/03/042		28,785		28,733
Delaware Funding Corp.
1.03%, 04/02/042		14,393		14,392
1.03%, 05/05/042		21,613		21,592
1.03%, 05/21/042		7,196		7,186
Edison Asset Securitization
1.07%, 09/21/042		14,393		14,319
Eureka Securitization Inc.
1.03%, 05/25/042		5,757		5,748
1.04%, 04/14/042		17,271		17,265
Falcon Asset Securitization
1.03%, 04/15/042		17,298		17,291
1.03%, 04/22/042		16,983		16,973
1.03%, 04/30/042		14,393		14,381
Galaxy Funding Inc.
1.05%, 05/17/042		14,393		14,373
Gemini Securitization Corp.
1.03%, 04/20/042		8,641		8,637
1.03%, 04/23/042		16,634		16,624
1.03%, 04/30/042		10,087		10,079
1.03%, 05/24/042		7,196		7,185
1.04%, 04/19/042		7,196		7,193
GIRO Funding US Corp.
1.05%, 05/19/042		7,196		7,186
Jupiter Securitization Corp.
1.03%, 04/16/042		28,785		28,773
1.03%, 04/19/042		38,860		38,840
1.03%, 04/28/042		17,271		17,258
1.03%, 04/30/042		24,518		24,497
Liberty Street Funding Corp.
1.04%, 04/08/042		10,085		10,083
1.05%, 04/05/042		11,658		11,657
Polonius Inc.
1.04%, 05/21/042		16,652		16,628
Preferred Receivables Funding Corp.
1.03%, 04/19/042		30,224		30,209
1.04%, 04/23/042		33,103		33,082
1.04%, 05/20/042		7,196		7,186
Receivables Capital Corp.
1.04%, 04/14/042		12,665		12,661
Scaldis Capital LLC
1.05%, 06/30/042		10,305		10,278
Thames Asset Global Securitization No. 1 Inc.
1.03%, 04/19/042		14,393		14,385
Thunder Bay Funding Inc.
1.03%, 04/19/042		9,155		9,150
1.04%, 04/29/042		12,965		12,954
				645,047
TIME DEPOSITS – 2.65%
Toronto-Dominion Bank
1.41%, 11/01/042		21,589		21,588

56 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® S&P GLOBAL TELECOMMUNICATIONS SECTOR INDEX FUND

March 31, 2004

Security	Principal		Value
Abbey National Treasury Services PLC
1.08%, 04/01/042	$	100,748	$	100,748
1.33%, 02/10/052		14,393		14,391
1.39%, 02/02/052		14,393		14,391
1.40%, 10/25/042		28,785		28,775
Bank of New York
1.39%, 11/01/042		28,785		28,783
Bank of Nova Scotia
1.24%, 10/07/042		21,589		21,588
1.42%, 10/29/042		21,589		21,590
Canadian Imperial Bank of Commerce
1.24%, 10/07/042		21,589		21,587
1.38%, 11/22/042		7,196		7,197
1.40%, 10/29/042		28,785		28,785
National City Bank (Cleveland, Ohio)
1.02%, 04/01/042		43,178		43,178
Toronto-Dominion Bank
1.04%, 06/22/042		7,196		7,196
1.22%, 03/23/052		50,374		50,365
1.34%, 02/10/052		11,514		11,513
UBS Finance (Delaware)
1.06%, 04/01/042		57,570		57,570
1.10%, 09/08/042		28,785		28,644
1.11%, 12/17/042		43,178		42,832
				550,721
REPURCHASE AGREEMENTS – 0.83%
Bank of America, NA
1.06%, 04/01/042		57,570		57,570
Goldman, Sachs & Co.
1.08%, 04/01/042		115,140		115,140
				172,710
U.S. GOVERNMENT AGENCY NOTES – 0.34%
Federal Home Loan Mortgage Corporation
1.15%, 05/12/042	$	21,589	$	21,561
1.28%, 08/19/042		11,514		11,457
Federal National Mortgage Association
1.28%, 08/20/042		37,421		37,233
				70,251
TOTAL SHORT-TERM INVESTMENTS (Cost: $3,406,840)				3,406,840
TOTAL INVESTMENTS IN SECURITIES – 116.17% (Cost: $24,549,467)				24,100,918
Other Assets, Less Liabilities – (16.17%)				(3,354,218	)
NET ASSETS – 100.00%			$	20,746,700

¹ Non-income earning securities.

² All or a portion of this security represents investments of securities lending collateral.

³ Issuer is an affiliate of the Fund’s investment advisor. See Note 2.

⁴ Security exempt from registration under Rule 144A of the Securities Act of 1933.

These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 57

Schedule of Investments

iSHARES^® S&P EUROPE 350 INDEX FUND

March 31, 2004

Security	Shares	Value
COMMON STOCKS – 99.19%
AUSTRIA – 0.05%
OMV AG	1,920	$	363,361
VA Technologie AG1	1,440		64,856
			428,217
BELGIUM – 1.50%
AGFA Gevaert NV	13,680		335,050
Algemene Maatschappij voor Nijverheidskredit NV	14,880		902,416
Dexia Group	106,560		1,850,346
Electrabel SA	4,320		1,406,845
Fortis	178,800		3,801,283
Groupe Bruxelles Lambert SA	9,120		550,852
Interbrew SA	20,880		574,515
KBC Bankverzekeringsholding NV	14,880		870,415
Solvay SA	9,600		771,553
UCB SA	13,440		516,468
			11,579,743
DENMARK – 0.83%
AP Moller - Maersk A/S	240		1,711,385
Danske Bank A/S	77,280		1,747,594
Group 4 Falck A/S	4,320		110,884
ISS A/S	6,480		332,116
Novo Nordisk A/S Class B	39,120		1,814,504
TDC A/S	14,400		525,300
Vestas Wind Systems A/S	13,200		211,348
			6,453,131
FINLAND – 2.23%
Nokia OYJ	706,800		14,488,023
Stora Enso OYJ Class R	99,840		1,256,380
UPM-Kymmene OYJ	79,680		1,458,989
			17,203,392
FRANCE – 14.19%
Accor SA	28,800		1,166,885
Alcatel SA1	183,120		2,889,464
Alstom1	104,008		251,796
Arcelor	76,320		1,384,335
Assurances Generales de France	8,400		521,299
Aventis SA	102,960		7,914,298
AXA	216,240		4,512,220
BNP Paribas SA	127,440		7,788,266
Bouygues SA	34,800		1,197,440
Cap Gemini SA1	15,600		594,871
Carrefour SA	89,520		4,415,847
Christian Dior SA	9,840		650,570
Compagnie de Saint-Gobain SA	48,960		2,473,463
Compagnie Generale des Etablissements Michelin Class B	22,320		1,011,035
Credit Agricole SA	105,366		2,751,541
Dassault Systemes SA	9,600		398,754
Essilor International SA	15,120		919,572
Etablissements Economiques du Casino Guichard-Perrachon SA	6,720		644,553
European Aeronautic Defence and Space Co.	38,880		838,533
France Telecom SA1	158,184		4,047,248
Groupe Danone	18,720		3,068,868
Hermes International	3,120		636,472
Lafarge SA	23,663		1,914,882
Lagardere S.C.A.	21,120		1,202,466
L’Air Liquide SA	15,120		2,573,464
L’Oreal SA	46,800		3,583,030
LVMH Moet Hennessy Louis Vuitton SA	33,840		2,486,841
Pernod-Ricard SA	8,880		1,080,351
Pinault-Printemps-Redoute SA	10,320		1,078,625
PSA Peugeot Citroen	26,160		1,332,857
Publicis Groupe	19,680		596,638
Renault SA	28,560		1,977,738
Sagem SA	2,498		277,816
Sanofi-Synthelabo SA	54,720		3,574,093
Schneider Electric SA	31,680		2,063,372
Societe Generale Class A	57,360		4,899,034
Societe Television Francaise1	18,720		594,449
Sodexho Alliance SA	13,440		409,112
STMicroelectronics NV	89,280		2,104,357
Suez SA	142,800		2,916,593
Thales/Ex Thomson CSF	9,600		367,372
Thomson SA	38,160		703,891
Total SA	96,480		17,713,502
Valeo SA	9,594		398,033

58 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® S&P EUROPE 350 INDEX FUND

March 31, 2004

Security	Shares	Value
Veolia Environment	29,040	$	810,101
Vinci SA	11,040		1,059,587
Vivendi Universal SA1	144,960		3,842,509
			109,638,043
GERMANY – 9.63%
Adidas-Salomon AG	7,200		837,382
Allianz AG	49,626		5,403,916
Altana AG	10,320		638,424
BASF AG	85,680		4,351,725
Bayer AG	105,600		2,570,780
Bayerische Hypo-Und Vereinsbank AG1	75,594		1,480,786
Bayerische Motoren Werke AG	49,200		2,000,684
Commerzbank AG	70,320		1,192,544
Continental AG	20,160		793,283
DaimlerChrysler AG Registered	124,320		5,191,357
Deutsche Bank AG	86,880		7,222,776
Deutsche Lufthansa AG	51,360		836,922
Deutsche Post AG	48,000		1,073,567
Deutsche Telekom AG1	356,880		6,411,891
E.ON AG	94,560		6,228,576
Epcos AG1	7,920		179,474
Fresenius Medical Care AG	5,040		332,352
Hypo Real Estate Holding AG1	13,487		378,388
Infineon Technologies AG1	78,720		1,151,194
Linde AG	12,000		635,440
MAN AG	12,000		427,657
Metro AG	21,840		935,077
MLP AG1	8,160		149,415
Muenchener Rueckversicherungs – Gesellschaft AG	27,201		3,020,826
RWE AG	60,000		2,693,503
SAP AG	30,480		4,818,827
Schering AG	27,120		1,283,452
Siemens AG	124,080		9,159,588
ThyssenKrupp AG	60,000		1,114,858
TUI AG	16,560		377,503
Volkswagen AG	34,320		1,498,930
			74,391,097
GREECE – 0.21%
Hellenic Telecommunications Organization SA	86,880		625,536
National Bank of Greece SA ADR	179,454		978,024
			1,603,560
IRELAND – 0.83%
Allied Irish Banks PLC	125,040		1,865,453
Bank of Ireland	142,080		1,772,211
CRH PLC	78,979		1,606,298
Elan Corporation PLC1	58,320		1,196,880
			6,440,842
ITALY – 5.24%
Alitalia SpA1	305,520		90,860
Alleanza Assicurazioni SpA	76,800		869,235
Assicurazioni Generali SpA	165,360		4,218,658
Autostrade SpA1	9,360		167,246
Banca Fideuram SpA	36,000		199,082
Banca Intesa SpA	661,440		2,186,549
Banca Monte dei Paschi di Siena SpA	175,200		511,345
Banca Nazionale del Lavoro SpA1	240,000		544,157
Banca Popolare di Verona e Novara SCRL	49,680		808,325
Benetton Group SpA	6,720		71,434
Capitalia SpA1	256,320		663,057
Enel SpA	345,628		2,794,804
Eni SpA	417,600		8,395,766
Fiat SpA1	94,560		653,071
FinecoGroup SpA1	21,600		119,715
Finmeccanica SpA	933,840		722,986
Luxottica Group SpA	23,280		366,193
Mediaset SpA	94,800		1,051,992
Mediobanca SpA	76,320		880,685
Mediolanum SpA	36,000		221,644
Pirelli & Co. SpA	354,297		345,704
Riunione Adriatica di Sicurta SpA	46,560		832,516
Sanpaolo IMI SpA	182,640		2,080,617
Seat Pagine Gaille SpA1	536,905		524,543
Snam Rete Gas SpA	118,080		533,999
Telecom Italia Mobile SpA	553,680		3,129,920
Telecom Italia SpA1	1,275,900		3,998,281

SCHEDULES OF INVESTMENTS 59

Schedule of Investments (Continued)

iSHARES^® S&P EUROPE 350 INDEX FUND

March 31, 2004

Security	Shares	Value
Tiscali SpA1	34,080	$	196,003
Unicredito Italiano SpA	690,960		3,294,588
			40,472,975
NETHERLANDS – 6.90%
ABN AMRO Holding NV	217,200		4,844,545
Aegon NV	198,769		2,540,379
Akzo Nobel NV	41,040		1,506,465
ASML Holding NV1	66,960		1,226,901
Burhmann NV1	17,760		160,416
DSM NV	11,280		503,606
Equant NV1	21,840		210,688
Gucci Group NV	4,560		388,062
Heineken NV	28,344		1,135,521
ING Groep NV	255,360		5,610,957
Koninklijke Ahold NV1	223,273		1,827,372
Koninklijke KPN NV1	294,140		2,295,326
Koninklijke Numico NV1	21,365		630,131
Koninklijke Philips Electronics NV	188,883		5,461,744
Randstad Holding NV	11,520		307,205
Reed Elsevier NV	99,840		1,317,727
Royal Dutch Petroleum Co.	310,560		14,750,664
TNT Post Group NV	44,640		939,171
Unilever NV CVA	84,720		5,845,912
VNU NV	39,600		1,133,881
Wolters Kluwer NV CVA	40,800		697,435
			53,334,108
NORWAY – 0.38%
Norsk Hydro ASA	19,680		1,238,268
Orkla ASA	24,000		688,626
Statoil ASA	60,000		731,883
Tomra Systems ASA	24,480		124,078
Yara International ASA	19,188		139,176
			2,922,031
PORTUGAL – 0.62%
Banco Comercial Portugues SA Class R	469,920		1,160,744
Banco Espirito Santo e Comercial de Lisboa SA	21,996		379,784
Brisa-Auto Estradas de Portugal SA1	68,880		469,789
CIMPOR-Cimentos de Portugal SGPS SA	37,920		195,720
Electricidade de Portugal SA	238,914		675,283
Portugal Telecom SGPS SA	167,778		1,876,260
			4,757,580
SPAIN – 5.20%
Abertis Infraestructuras SA	45,060		743,122
Acerinox SA	7,680		375,914
Actividades de Construccion y Servicios SA	9,889		483,673
Altadis SA	46,800		1,417,684
Amadeus Global Travel Distribution SA Class A	39,120		221,624
Banco Bilbao Vizcaya Argentaria SA	483,600		6,400,568
Banco Popular Espanol SA	27,120		1,587,068
Banco Santander Central Hispano SA	723,600		7,869,704
Bankinter SA	10,800		425,637
Endesa SA	143,040		2,601,571
Gas Natural SDG SA	32,160		801,890
Grupo Ferrovial SA	3,120		126,719
Iberdrola SA	114,480		2,363,499
Industria de Diseno Textil SA	31,920		737,458
Repsol YPF SA	144,480		2,993,518
Telefonica SA	687,360		10,398,216
Union Fenosa SA	30,240		633,983
			40,181,848
SWEDEN – 3.15%
ASSA Abloy AB Class B1	48,000		585,575
Atlas Copco AB Class A	18,240		648,207
Electrolux AB Class B	48,000		980,202
ForeningsSparbanken AB	60,000		1,113,866
Hennes & Mauritz AB Class B	72,000		1,938,127
Holmen AB Class B	5,280		148,431
Nordea AB	365,520		2,496,158
Sandvik AB	34,560		1,102,155
Securitas AB Class B	48,000		693,780
Skandia Forsakrings AB	159,840		631,619
Skandinaviska Enskilda Banken AB Class A	72,000		1,054,991
Skanska AB Class B	45,365		384,995
SKF AB Class B	11,280		408,343
Svenska Cellulosa AB Class B	28,560		1,141,824

60 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® S&P EUROPE 350 INDEX FUND

March 31, 2004

Security	Shares	Value
Svenska Handelsbanken AB Class A	83,520	$	1,578,189
Swedish Match AB	46,560		475,398
Telefonaktiebolaget LM Ericsson Class B1	2,264,640		6,276,236
Telia AB	254,950		1,102,114
Volvo AB Class A	15,840		506,205
Volvo AB Class B	33,360		1,099,275
			24,365,690
SWITZERLAND – 10.15%
ABB Ltd.1	255,050		1,503,906
Adecco SA	18,720		1,034,377
Baloise Holding (Registered)	6,240		261,550
Ciba Specialty Chemicals AG1	10,320		704,238
Clariant AG Registered	23,400		330,631
Compagnie Financiere Richemont AG	76,252		2,049,478
Credit Suisse Group	177,840		6,162,668
Givaudan SA Registered	1,200		612,859
Holcim Ltd.	20,400		1,090,974
Nestle SA	60,240		15,358,977
Novartis AG	368,880		15,665,425
Roche Holding AG Bearer	4,212		564,382
Roche Holding AG Genusschein	104,640		10,221,573
Swatch Group (The) AG Class B	5,040		654,442
Swiss Life Holding1	2,880		444,441
Swiss Re	48,480		3,340,809
Swisscom AG	3,600		1,182,145
Syngenta AG	15,605		1,138,179
UBS AG Registered	171,756		12,757,816
Zurich Financial Services AG1	21,060		3,320,626
			78,399,496
UNITED KINGDOM – 38.08%
Abbey National PLC	220,320		1,842,364
Aegis Group PLC	180,000		320,889
Alliance & Leicester PLC	68,400		1,098,696
Allied Domecq PLC	156,960		1,303,158
Amersham PLC	105,600		1,554,556
AMVESCAP PLC	102,240		752,547
Anglo American PLC	216,960		5,171,657
ARM Holdings PLC	138,960		303,911
Associated British Foods PLC	57,360		652,017
AstraZeneca PLC	250,080		11,595,948
Aviva PLC	336,000		3,260,493
AWG PLC1	23,594		238,059
BAA PLC	160,560		1,519,689
BAE Systems PLC	441,600		1,631,305
Barclays PLC2	968,164		8,527,488
BBA Group PLC	73,440		343,840
BG Group PLC	504,240		3,014,149
BHP Billiton PLC	368,493		3,359,085
BOC Group PLC	77,760		1,286,916
Boots Group PLC	110,640		1,259,690
BP PLC	3,273,360		27,432,708
BPB PLC	76,320		498,641
Brambles Industries PLC	120,240		474,561
British Airways PLC1	78,960		401,248
British American Tobacco PLC	223,200		3,357,553
British Land Co. PLC	78,000		935,374
British Sky Broadcasting Group PLC	184,560		2,301,429
BT Group PLC	1,271,791		4,137,129
Bunzl PLC	76,320		633,646
Cable & Wireless PLC1	351,120		837,284
Cadbury Schweppes PLC	306,480		2,416,404
Capita Group PLC	108,720		623,411
Carnival PLC	31,320		1,467,242
Centrica PLC	641,520		2,691,108
Cobham PLC	15,360		383,637
Compass Group PLC	336,240		2,215,382
Cookson Group PLC1	262,800		219,759
Cookson Group PLC Deferred Shares1,3	108,864		—
Corus Group PLC1	578,400		438,493
Corus Group PLC Deferred Shares1,3	315,252		1,448
Daily Mail and General Trust PLC Class A	46,320		560,150
Diageo PLC	457,200		5,957,479
Dimension Data Holdings PLC1	179,520		119,600
Dixons Group PLC	256,080		724,780
Electrocomponents PLC	72,240		453,397
EMAP PLC	37,440		596,575

SCHEDULES OF INVESTMENTS 61

Schedule of Investments (Continued)

iSHARES^® S&P EUROPE 350 INDEX FUND

March 31, 2004

Security	Shares	Value
EMI Group PLC	131,280	$	669,532
Exel PLC	49,440		639,678
FirstGroup PLC	72,240		356,146
FKI PLC	95,760		195,352
Gallaher Group PLC	99,120		1,185,001
GKN PLC	120,240		532,017
GlaxoSmithKline PLC	881,040		17,293,263
GUS PLC	150,000		2,064,824
Hammerson PLC	47,520		593,875
Hanson PLC	100,560		772,523
Hays PLC	287,760		658,430
HBOS PLC	570,480		7,737,610
Hilton Group PLC	249,840		1,042,312
HSBC Holdings PLC	1,624,560		24,154,294
IMI PLC	58,560		382,874
Imperial Chemical Industries PLC	173,040		717,934
Imperial Tobacco Group PLC	108,960		2,374,990
InterContinental Hotels Group PLC	115,929		1,058,909
Invensys PLC1	365,333		130,928
Invensys PLC Deferred Shares1,3	526,662		—
ITV PLC	621,744		1,522,611
J Sainsbury PLC	211,200		1,012,111
Johnson Matthey PLC	36,960		597,417
Kesa Electricals PLC	76,941		380,382
Kingfisher PLC	336,812		1,785,844
Land Securities Group PLC	67,352		1,349,233
Legal & General Group PLC	949,920		1,654,155
Lloyds TSB Group PLC	827,760		6,290,570
LogicaCMG PLC	116,400		548,185
Lonmin PLC	17,040		357,640
Marks & Spencer Group PLC	337,928		1,729,655
Misys PLC	77,280		292,225
Mitchells & Butlers PLC	81,784		392,301
mm02 PLC1	1,299,391		2,400,026
National Grid Group PLC	466,454		3,686,272
Next PLC	36,240		952,433
Northern Rock PLC	65,280		931,605
Old Mutual PLC	524,400		973,406
Pearson PLC	114,969		1,306,864
Peninsular & Oriental Steam Navigation Co. PLC	104,880		431,768
Pilkington PLC	126,960		208,833
Provident Financial PLC	41,280		554,584
Prudential Corp. PLC	301,200		2,477,183
Rank Group PLC	90,960		560,022
Reckitt Benckiser PLC	88,800		2,195,055
Reed International PLC	191,040		1,690,560
Rentokil Initial PLC	283,920		950,985
Reuters Group PLC	209,520		1,490,207
Rio Tinto PLC	159,360		3,930,447
RMC Group PLC	43,680		505,346
Rolls-Royce Group PLC	239,040		988,469
Royal & Sun Alliance Insurance Group PLC	464,007		699,276
Royal Bank of Scotland Group PLC	417,360		12,717,607
SABMiller PLC	112,080		1,289,474
Sage Group PLC	178,800		592,315
Schroders PLC	22,560		286,087
Scottish & Newcastle PLC	133,440		1,018,983
Scottish & Southern Energy PLC	130,800		1,652,687
Scottish Power PLC	282,480		1,976,686
Severn Trent PLC	51,120		714,966
Shell Transport & Trading Co. PLC	1,440,000		9,408,322
Shire Pharmaceuticals Group PLC1	74,400		726,068
Slough Estates PLC	62,640		515,175
Smith & Nephew PLC	130,080		1,280,207
Smiths Group PLC	84,965		1,000,940
Spirent PLC1	103,680		143,864
Standard Chartered PLC	152,160		2,547,587
Tate & Lyle PLC	52,560		287,136
Tesco PLC	1,092,960		4,936,372
3i Group PLC	92,880		1,073,700
Tomkins PLC	117,600		568,425
Trinity Mirror PLC	48,240		504,907
Unilever PLC	408,000		4,037,903
United Business Media PLC	55,233		502,474
United Utilities PLC	85,920		819,543
Vodafone Group PLC	10,085,760		23,865,247
W.H. Smith Group PLC	41,760		191,104
Whitebread PLC	39,360		525,172
WM Morrison Supermarkets PLC	342,000		1,572,933

62 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® S&P EUROPE 350 INDEX FUND

March 31, 2004

Security	Shares or Principal		Value
Wolseley PLC		89,040	$	1,381,958
WPP Group PLC		174,000		1,760,421
				294,219,320
TOTAL COMMON STOCKS (Cost: $731,535,216)				766,391,073
PREFERRED STOCKS – 0.19%
GERMANY – 0.19%
Henkel KGaA		7,920		655,120
Porsche AG		1,440		868,917
				1,524,037
TOTAL PREFERRED STOCKS (Cost: $1,239,096)				1,524,037
SHORT-TERM INVESTMENTS – 27.92%
MONEY MARKET FUNDS – 10.33%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares2,4		54,003,561		54,003,561
Barclays Global Investors Funds Prime Money Market Fund, Institutional Shares2,4		20,139,415		20,139,415
BlackRock Temp Cash Money Market Fund4		942,683		942,683
Short-Term Investment Co. – Liquid Assets Money Market Portfolio4		4,694,429		4,694,429
				79,780,088
FLOATING RATE NOTES – 5.75%
Beta Finance Inc.
1.05%, 05/20/044,5	$	915,428		915,410
1.05%, 09/15/044,5		1,830,856		1,830,772
1.06%, 10/12/044,5		915,428		915,380
1.14%, 08/23/044,5		915,428		915,736
CC USA Inc.
1.05%, 04/19/044,5		805,577		805,575
1.06%, 05/24/044,5		1,830,856		1,830,830
1.09%, 07/15/044,5		915,428		915,523
1.51%, 02/15/054,5		1,190,057		1,191,712
Security	Principal		Value
Dorada Finance Inc.
1.04%, 07/01/044	$	640,799	$	639,115
1.05%, 05/20/044,5		1,830,856		1,830,819
1.24%, 08/09/044		457,714		457,689
1.48%, 01/18/054,5		1,373,142		1,373,088
Five Finance Inc.
1.06%, 04/15/044,5		915,428		915,428
HBOS Treasury Services PLC
1.10%, 04/22/054		1,830,856		1,830,856
Holmes Financing PLC
1.05%, 04/15/044		183,086		183,086
K2 USA LLC
1.05%, 08/16/044,5		457,714		457,688
1.05%, 09/27/044,5		1,977,324		1,977,180
1.06%, 04/13/044		915,428		915,427
1.06%, 05/17/044		915,428		915,422
1.46%, 01/12/054,5		915,428		915,356
Links Finance LLC
1.05%, 06/28/044		915,428		915,384
1.06%, 05/04/044		915,428		915,424
1.06%, 07/20/044		732,342		732,298
Nationwide Building Society
1.09%, 07/23/044,5		1,373,142		1,373,142
1.11%, 12/28/044,5		1,830,856		1,830,856
Northern Rock PLC
1.11%, 01/13/054,5		1,739,313		1,739,313
Permanent Financing PLC
1.04%, 03/10/054		1,830,856		1,830,856
1.05%, 12/10/044		915,428		915,428
Sigma Finance Inc.
1.05%, 07/01/044		915,428		915,371
1.06%, 07/20/044		915,428		915,373
1.09%, 10/07/044		1,830,856		1,830,667
1.24%, 08/06/044		457,714		457,698
Tango Finance Corp.
1.05%, 01/18/054,5		805,577		805,511
1.06%, 07/15/044,5		549,257		549,205
1.07%, 02/25/054,5		1,025,279		1,025,094
1.10%, 07/06/044,5		549,257		549,242

SCHEDULES OF INVESTMENTS 63

Schedule of Investments (Continued)

iSHARES^® S&P EUROPE 350 INDEX FUND

March 31, 2004

Security	Principal		Value
WhistleJacket Capital LLC
1.05%, 09/15/044,5	$	915,428	$	915,344
1.32%, 02/04/054,5		457,714		457,637
White Pine Finance LLC
1.04%, 08/26/044,5		915,428		915,371
1.05%, 11/15/044,5		1,098,514		1,098,514
1.06%, 04/20/044,5		915,428		915,428
1.06%, 07/06/044,5		1,098,514		1,098,486
				44,433,734
COMMERCIAL PAPER – 5.31%
Alpine Securitization Corp.
1.03%, 04/14/044		860,502		860,182
1.03%, 04/20/044		915,428		914,930
1.03%, 04/23/044		1,080,205		1,079,525
1.03%, 04/26/044		915,428		914,773
Amsterdam Funding Corp.
1.03%, 05/05/044		741,497		740,775
Barton Capital Corp.
1.03%, 04/02/044		954,041		954,013
Blue Ridge Asset Funding Corp.
1.02%, 04/23/044		549,257		548,914
1.03%, 05/21/044		915,428		914,118
Corporate Asset Funding
1.05%, 05/21/044		952,045		950,663
Corporate Receivables Corp.
1.03%, 04/07/044		915,428		915,271
1.04%, 06/03/044		1,830,856		1,827,524
Delaware Funding Corp.
1.03%, 04/02/044		915,428		915,402
1.03%, 05/05/044		1,374,661		1,373,324
1.03%, 05/21/044		457,714		457,059
Edison Asset Securitization
1.07%, 09/21/044		915,427		910,721
Eureka Securitization Inc.
1.03%, 05/25/044		366,171		365,605
1.04%, 04/14/044		1,098,513		1,098,101
Falcon Asset Securitization
1.03%, 04/15/044		1,100,216		1,099,776
1.03%, 04/22/044		1,080,205		1,079,556
1.03%, 04/30/044		915,428		914,668
Galaxy Funding Inc.
1.05%, 05/17/044		915,428		914,206
Gemini Securitization Corp.
1.03%, 04/20/044		549,623		549,324
1.03%, 04/23/044		1,057,997		1,057,331
1.03%, 04/30/044		641,587		641,054
1.03%, 05/24/044		457,714		457,020
1.04%, 04/19/044		457,714		457,476
GIRO Funding US Corp.
1.05%, 05/19/044		457,714		457,073
Jupiter Securitization Corp.
1.03%, 04/16/044		1,830,856		1,830,070
1.03%, 04/19/044		2,471,655		2,470,383
1.03%, 04/28/044		1,098,514		1,097,665
1.03%, 04/30/044		1,559,432		1,558,138
Liberty Street Funding Corp.
1.04%, 04/08/044		641,459		641,329
1.05%, 04/05/044		741,497		741,410
Polonius Inc.
1.04%, 05/21/044		1,059,150		1,057,620
Preferred Receivables Funding Corp.
1.03%, 04/19/044		1,922,399		1,921,409
1.04%, 04/23/044		2,105,484		2,104,146
1.04%, 05/20/044		457,714		457,066
Receivables Capital Corp.
1.04%, 04/14/044		805,577		805,274
Scaldis Capital LLC
1.05%, 06/30/044		655,446		653,726
Thames Asset Global Securitization No. 1 Inc.
1.03%, 04/19/044		915,428		914,957
Thunder Bay Funding Inc.
1.03%, 04/19/044		582,304		582,004
1.04%, 04/29/044		824,618		823,950
				41,027,531
TIME DEPOSITS – 4.53%
Toronto-Dominion Bank
1.41%, 11/01/044		1,373,142		1,373,061

64 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® S&P EUROPE 350 INDEX FUND

March 31, 2004

Security	Principal		Value
Abbey National Treasury Services PLC
1.08%, 04/01/044	$	6,407,996	$	6,407,996
1.33%, 02/10/054		915,428		915,309
1.39%, 02/02/054		915,428		915,312
1.40%, 10/25/044		1,830,856		1,830,702
Bank of New York
1.39%, 11/01/044		1,830,856		1,830,749
Bank of Nova Scotia
1.24%, 10/07/044		1,373,142		1,373,071
1.42%, 10/29/044		1,373,142		1,373,201
Canadian Imperial Bank of Commerce
1.24%, 10/07/044		1,373,142		1,373,035
1.38%, 11/22/044		457,714		457,736
1.40%, 10/29/044		1,830,856		1,830,829
National City Bank (Cleveland, Ohio)
1.02%, 04/01/044		2,746,284		2,746,284
Toronto-Dominion Bank
1.04%, 06/22/044		457,714		457,714
1.22%, 03/23/054		3,203,998		3,203,450
1.34%, 02/10/054		732,342		732,248
UBS Finance (Delaware)
1.06%, 04/01/044		3,661,712		3,661,712
1.10%, 09/08/044		1,830,856		1,821,905
1.11%, 12/17/044		2,746,284		2,724,268
				35,028,582
REPURCHASE AGREEMENTS – 1.42%
Bank of America, NA
1.06%, 04/01/044		3,661,712		3,661,712
Goldman, Sachs & Co.
1.08%, 04/01/044		7,323,424		7,323,424
				10,985,136
U.S. GOVERNMENT AGENCY NOTES – 0.58%
Federal Home Loan
Mortgage Corporation
1.15%, 05/12/044		1,373,142		1,371,343
1.28%, 08/19/044		732,342		728,697
Federal National
Mortgage Association
1.28%, 08/20/044		2,380,111		2,368,180
				4,468,220
TOTAL SHORT-TERM INVESTMENTS (Cost: $215,723,291)				215,723,291
TOTAL INVESTMENTS IN SECURITIES – 127.30% (Cost: $948,497,603)				983,638,401
Other Assets, Less Liabilities – (27.30%)				(210,974,565	)
NET ASSETS – 100.00%			$	772,663,836

¹ Non-income earning securities.

² Issuer is an affiliate of the Fund’s investment advisor. See Note 2.

³ Security valued at fair value in accordance with procedures approved by the Board of Trustees. See Note 1.

⁴ All or a portion of this security represents investments of securities lending collateral.

⁵ Security exempt from registration under Rule 144A of the Securities Act of 1933.

These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 65

Schedule of Investments

iSHARES^® S&P LATIN AMERICA 40 INDEX FUND

March 31, 2004

Security	Shares	Value
COMMON STOCKS – 98.52%
ARGENTINA – 2.78%
Grupo Financiero Galicia SA ADR1	30,926	$	262,871
Petrobras Energia
Participaciones SA ADR1	75,816		1,053,842
Tenaris SA ADR	31,068		1,018,720
			2,335,433
BRAZIL – 43.15%
Aracruz Celulose SA ADR	34,907		1,335,193
Banco Bradesco SA ADR	54,366		2,617,723
Banco Itau Holding Financiera SA ADR	81,452		3,809,510
Brasil Telecom Participacoes SA ADR	29,748		1,015,894
Centrais Eletricas Brasileiras SA ADR	158,613		1,001,197
Companhia Brasileira de Distribuicao Grupo Pao de Acucar ADR	8,280		174,294
Companhia de Bebidas das Americas ADR	164,473		3,289,460
Companhia Energetica de Minas Gerais ADR	58,237		1,016,236
Companhia Siderurgica Nacional SA ADR	26,888		1,833,762
Companhia Vale do Rio Doce ADR	103,181		4,834,030
Embratel Participacoes SA ADR	12,336		183,313
Empresa Brasileira de Aeronautica SA ADR	56,637		1,818,048
Gerdau SA ADR	56,076		1,306,571
Petroleo Brasileiro SA ADR	254,508		8,526,018
Tele Norte Leste Participacoes SA ADR	173,305		2,249,499
Unibanco – Uniao de Bancos Brasileiros SA GDR	49,964		1,222,619
			36,233,367
CHILE – 9.63%
Banco de Chile ADR	10,654		303,639
Banco Santander Chile SA ADR	85,517		2,300,407
Distribution y Servicio D&S SA ADR	64,639		1,131,182
Empresa Nacional de Electricidad SA ADR	154,548		1,891,668
Enersis SA ADR	183,402		1,179,275
Sociedad Quimica y Minera de Chile SA ADR	31,178		1,276,739
			8,082,910
MEXICO – 42.96%
Alfa SA Class A	263,561		1,000,210
America Movil SA de CV Series L	5,358,100		10,351,638
Cemex SA de CV Series CPO	1,148,006		6,806,843
Fomento Economico Mexicano SA de CV Class UBD	140,800		692,907
Grupo Carso SA de CV Series A1	300,011		1,259,402
Grupo Modelo SA de CV Series C	161,894		441,042
Grupo Televisa SA Series CPO	1,279,927		3,019,344
Kimberly-Clark de Mexico SA de CV Class A	288,499		781,814
Telefonos de Mexico SA de CV ADR Series L	5,024,492		8,762,498
Wal-Mart de Mexico SA de CV Series V	966,289		2,949,907
			36,065,605
TOTAL COMMON STOCKS (Cost: $68,037,930)			82,717,315
PREFERRED STOCKS – 0.90%
BRAZIL – 0.90%
Centrais Eletricas Brasileiras SA ADR	117,033		759,813
			759,813
TOTAL PREFERRED STOCKS (Cost: $722,475)			759,813
TOTAL INVESTMENTS IN SECURITIES – 99.42% (Cost: $68,760,405)			83,477,128
Other Assets, Less Liabilities – 0.58%			482,920
NET ASSETS – 100.00%		$	83,960,048

¹ Non-income earning securities.

See notes to financial statements.

66 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® S&P / TOPIX 150 INDEX FUND

March 31, 2004

Security	Shares	Value
COMMON STOCKS – 99.51%
Toyota Motor Corp.	102,400	$	3,819,022
Nippon Telegraph & Telephone Corp.	332		1,882,828
NTT DoCoMo Inc.	692		1,529,870
Canon Inc.	28,000		1,450,666
Sony Corp.	34,000		1,424,905
Honda Motor Co. Ltd.	28,800		1,328,784
Takeda Chemical Industries Ltd.	28,800		1,284,491
Nomura Holdings Inc.	68,000		1,238,622
Matsushita Electric Industrial Co. Ltd.	76,000		1,174,682
Mitsubishi Tokyo Financial Group Inc.	116		1,148,460
Nissan Motor Co. Ltd.	86,000		963,041
Tokyo Electric Power Co. Inc. (The)	42,000		950,738
Millea Holdings Inc.	60		934,301
Mizuho Financial Group Inc.	208		895,699
Hitachi Ltd.	112,000		868,785
Sumitomo Mitsui Financial Group Inc.	108		799,346
East Japan Railway Co.	128		673,004
UFJ Holdings Inc.	92		585,418
Sharp Corp.	32,000		571,808
Mitsui Sumitomo Insurance Co. Ltd.	52,000		553,814
Nippon Steel Corp.	236,000		551,238
Ito-Yokado Co. Ltd.	12,000		546,739
Mitsubishi Estate Co. Ltd.	40,000		542,510
Kyocera Corp.	6,400		537,665
Shin-Etsu Chemical Co. Ltd.	12,400		522,055
Mitsubishi Corp.	44,000		520,210
Rohm Co. Ltd.	4,000		517,903
Fuji Photo Film Co. Ltd.	16,000		509,059
Kansai Electric Power Co. Inc.	26,400		499,655
Chubu Electric Power Co. Inc.	22,400		494,141
NEC Corp.	60,000		493,680
Ricoh Corp. Ltd.	24,000		493,680
Toshiba Corp.	108,000		489,989
Murata Manufacturing Co. Ltd.	7,600		482,876
JFE Holdings Inc.	17,225		471,045
Kao Corp.	20,000		457,538
Seven-Eleven Japan Co. Ltd.	12,000		438,314
AEON Co. Ltd.	10,000		431,585
Mitsui & Co. Ltd.	48,000		430,932
Yamanouchi Pharmaceutical Co. Ltd.	12,000		412,938
Fujitsu Ltd.1	64,000		409,093
Mitsubishi Electric Corp.	72,000		408,324
Dai Nippon Printing Co. Ltd.	24,000		397,020
Daiwa Securities Group Inc.1	48,000		392,176
Mitsubishi Heavy Industries Ltd.	120,000		389,869
Bridgestone Corp.	24,000		376,719
Softbank Corp.1	8,000		374,489
Tokyo Electron Ltd.	5,600		374,105
Denso Corp.	16,400		373,605
Nintendo Co. Ltd.	3,600		363,685
ORIX Corp.	3,200		354,035
Mitsui Fudosan Co. Ltd.	28,000		352,304
Hoya Corp.	3,600		351,228
Secom Co. Ltd.	8,000		349,113
Tokyo Gas Co. Ltd.	92,000		348,421
Nikko Cordial Corp.	52,000		344,884
Sompo Japan Insurance Inc.	32,000		343,269
TDK Corp.	4,400		336,233
Fanuc Ltd.	5,200		326,390
Central Japan Railway Co.	36		320,431
Toppan Printing Co. Ltd.	24,000		309,357
Asahi Glass Co. Ltd.	28,000		302,514
Kirin Brewery Co. Ltd.	28,000		302,244
Sanyo Electric Co. Ltd.	60,000		298,746
Sankyo Co. Ltd.	13,600		296,093
Keyence Corp.	1,200		292,517
Sumitomo Corp.	32,000		288,211
Nippon Oil Corp.	48,000		274,984
Kyushu Electric Power Co. Inc.	14,400		265,480
Nitto Denko Corp.	4,800		263,911
Advantest Corp.	3,200		262,373
Asahi Kasei Corp.	44,000		258,413
Eisai Co. Ltd.	9,200		249,378
SMC Corp.	2,000		238,574
Fujisawa Pharmaceutical Co. Ltd.	9,600		230,692
Komatsu Ltd.	36,000		228,385
Sekisui House Ltd.	20,000		225,501
Oji Paper Co. Ltd.	32,000		222,387
Acom Co. Ltd.	3,000		219,157
Sumitomo Electric Industries Ltd.	24,000		218,465
Suzuki Motor Corp.	14,000		217,869

SCHEDULES OF INVESTMENTS 67

Schedule of Investments (Continued)

iSHARES^® S&P / TOPIX 150 INDEX FUND

March 31, 2004

Security	Shares	Value
Mitsubishi Chemical Corp.	68,000	$	207,853
Promise Co. Ltd.	3,000		206,181
Toray Industries Inc.	44,000		204,277
Daiwa House Industry Co. Ltd.	16,000		204,239
Japan Airlines System Corp.1	60,000		204,162
NTT Data Corp.	48		203,931
Osaka Gas Co. Ltd.	68,000		203,278
Yamato Transport Co. Ltd.	12,000		201,624
Daikin Industries Ltd.	8,000		201,471
Konica Minolta Holdings Inc.	14,000		200,240
Nippon Express Co. Ltd.	32,000		198,702
Itochu Corp.1	44,000		197,933
Ajinomoto Co. Inc.	16,000		190,705
Marui Co. Ltd.	12,000		188,821
Sumitomo Chemical Co. Ltd.	40,000		188,398
Mitsui O.S.K. Lines Ltd.	36,000		185,476
All Nippon Airways Co. Ltd.	52,000		178,940
Pioneer Corp.	6,000		177,632
Tostem Inax Holding Corp.	8,000		176,864
West Japan Railway Company	44		176,364
Japan Tobacco Inc.	24		175,556
Tokyu Corp.	28,000		175,479
Nippon Yusen Kabushiki Kaisha	36,000		171,981
Kubota Corp.	36,000		171,635
JSR Corp.	8,000		171,481
Nippon Unipac Holding	32		170,712
Asahi Breweries Ltd.	14,400		167,067
Takefuji Corp.	2,360		164,464
Nipponkoa Insurance Co. Ltd.	24,000		161,023
Sumitomo Trust & Banking Co. Ltd. (The)	24,000		159,869
Credit Saison Co. Ltd.	5,200		156,447
Shiseido Co. Ltd.	12,000		156,409
Daiichi Pharmaceutical Co. Ltd.	8,000		155,332
Taisho Pharmaceutical Co. Ltd.	8,000		154,563
Matsushita Electric Works Ltd.	16,000		153,025
Taisei Corp.	36,000		152,256
Mitsui Chemicals Inc.	24,000		147,873
Terumo Corp.	6,800		147,719
NOK Corp.	4,000		147,643
Kintetsu Corp.	40,000		146,105
Sumitomo Metal Mining Co. Ltd.	20,000		144,951
Oriental Land Co. Ltd.	2,000		142,260
Marubeni Corp.	52,000		141,452
Sumitomo Metal Industries Ltd.	104,000		138,953
Kajima Corp.	32,000		137,492
Hirose Electric Co. Ltd.	1,200		133,455
Obayashi Corp.	24,000		131,263
Shimizu Corp.	24,000		131,033
Alps Electric Co. Ltd.	8,000		117,653
Kuraray Co. Ltd.	12,000		103,119
NGK Insulators Ltd.	12,000		98,505
Mitsubishi Materials Corp.	40,000		97,659
Nissin Food Products Co. Ltd.	3,600		91,873
Kawasaki Heavy Industries Ltd.1	56,000		89,893
TOTO Ltd.	8,000		89,893
Odakyu Electric Railway Co. Ltd.	16,000		87,663
Mitsui Mining & Smelting Co. Ltd.	20,000		87,278
Toyo Seikan Kaisha Ltd.	4,000		79,589
NSK Ltd.	16,000		78,897
Nisshin Seifun Group Inc.	8,000		78,281
Furukawa Electric Co. Ltd.1	20,000		77,858
Uni-Charm Corp.	1,600		76,590
TonenGeneral Sekiyu K.K.	8,000		69,900
Nippon Sheet Glass Co. Ltd.	16,000		62,902
Fujikura Ltd.	12,000		62,056
Minebea Co. Ltd.	12,000		60,441
Nippon Meat Packers Inc.	4,000		47,023
Nippon Television Network Corp.	180		32,164
TOTAL COMMON STOCKS (Cost: $46,491,315)			56,466,506
SHORT-TERM INVESTMENTS – 4.07%
MONEY MARKET FUNDS – 1.53%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares2,3	591,993		591,993
Barclays Global Investors Funds Prime Money Market Fund, Institutional Shares2,3	213,621		213,621
BlackRock Temp Cash Money Market Fund2	9,999		9,999

68 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® S&P / TOPIX 150 INDEX FUND

March 31, 2004

Security	Shares or Principal		Value
Short-Term Investment Co. – Liquid Assets Money Market Portfolio2		49,794	$	49,794
				865,407
FLOATING RATE NOTES – 0.83%
Beta Finance Inc.
1.05%, 05/20/042,4	$	9,710		9,710
1.05%, 09/15/042,4		19,420		19,419
1.06%, 10/12/042,4		9,710		9,710
1.14%, 08/23/042,4		9,710		9,713
CC USA Inc.
1.05%, 04/19/042,4		8,545		8,545
1.06%, 05/24/042,4		19,420		19,420
1.09%, 07/15/042,4		9,710		9,711
1.51%, 02/15/052,4		12,623		12,641
Dorada Finance Inc.
1.04%, 07/01/042		6,797		6,779
1.05%, 05/20/042,4		19,420		19,420
1.24%, 08/09/042		4,855		4,855
1.48%, 01/18/052,4		14,565		14,565
Five Finance Inc.
1.06%, 04/15/042,4		9,710		9,710
HBOS Treasury Services PLC
1.10%, 04/22/052		19,420		19,420
Holmes Financing PLC
1.05%, 04/15/042		1,942		1,942
K2 USA LLC
1.05%, 08/16/042,4		4,855		4,855
1.05%, 09/27/042,4		20,974		20,972
1.06%, 04/13/042		9,710		9,710
1.06%, 05/17/042		9,710		9,710
1.46%, 01/12/052,4		9,710		9,709
Links Finance LLC
1.05%, 06/28/042		9,710		9,710
1.06%, 05/04/042		9,710		9,710
1.06%, 07/20/042		7,768		7,768
Nationwide Building Society
1.09%, 07/23/042,4		14,565		14,565
1.11%, 12/28/042,4		19,420		19,420
Northern Rock PLC
1.11%, 01/13/052,4		18,449		18,449
Security	Principal		Value
Permanent Financing PLC
1.04%, 03/10/052	$	19,420	$	19,420
1.05%, 12/10/042		9,710		9,710
Sigma Finance Inc.
1.05%, 07/01/042		9,710		9,709
1.06%, 07/20/042		9,710		9,709
1.09%, 10/07/042		19,420		19,418
1.24%, 08/06/042		4,855		4,855
Tango Finance Corp.
1.05%, 01/18/052,4		8,545		8,544
1.06%, 07/15/042,4		5,826		5,825
1.07%, 02/25/052,4		10,875		10,873
1.10%, 07/06/042,4		5,826		5,826
WhistleJacket Capital LLC
1.05%, 09/15/042,4		9,710		9,709
1.32%, 02/04/052,4		4,855		4,854
White Pine Finance LLC
1.04%, 08/26/042,4		9,710		9,709
1.05%, 11/15/042,4		11,652		11,652
1.06%, 04/20/042,4		9,710		9,710
1.06%, 07/06/042,4		11,652		11,652
				471,313
COMMERCIAL PAPER – 0.77%
Alpine Securitization Corp.
1.03%, 04/14/042		9,127		9,124
1.03%, 04/20/042		9,710		9,705
1.03%, 04/23/042		11,458		11,451
1.03%, 04/26/042		9,710		9,703
Amsterdam Funding Corp.
1.03%, 05/05/042		7,865		7,857
Barton Capital Corp.
1.03%, 04/02/042		10,120		10,119
Blue Ridge Asset Funding Corp.
1.02%, 04/23/042		5,826		5,822
1.03%, 05/21/042		9,710		9,696
Corporate Asset Funding
1.05%, 05/21/042		10,098		10,084
Corporate Receivables Corp.
1.03%, 04/07/042		9,710		9,708
1.04%, 06/03/042		19,420		19,385

SCHEDULES OF INVESTMENTS 69

Schedule of Investments (Continued)

iSHARES^® S&P/TOPIX 150 INDEX FUND

March 31, 2004

Security	Principal		Value
Delaware Funding Corp.
1.03%, 04/02/042	$	9,710	$	9,710
1.03%, 05/05/042		14,581		14,567
1.03%, 05/21/042		4,855		4,848
Edison Asset Securitization
1.07%, 09/21/042		9,710		9,660
Eureka Securitization Inc.
1.03%, 05/25/042		3,884		3,878
1.04%, 04/14/042		11,652		11,648
Falcon Asset Securitization
1.03%, 04/15/042		11,670		11,665
1.03%, 04/22/042		11,458		11,451
1.03%, 04/30/042		9,710		9,702
Galaxy Funding Inc.
1.05%, 05/17/042		9,710		9,697
Gemini Securitization Corp.
1.03%, 04/20/042		5,830		5,827
1.03%, 04/23/042		11,222		11,215
1.03%, 04/30/042		6,805		6,800
1.03%, 05/24/042		4,855		4,848
1.04%, 04/19/042		4,855		4,853
GIRO Funding US Corp.
1.05%, 05/19/042		4,855		4,848
Jupiter Securitization Corp.
1.03%, 04/16/042		19,420		19,412
1.03%, 04/19/042		26,217		26,204
1.03%, 04/28/042		11,652		11,643
1.03%, 04/30/042		16,541		16,527
Liberty Street Funding Corp.
1.04%, 04/08/042		6,804		6,803
1.05%, 04/05/042		7,865		7,864
Polonius Inc.
1.04%, 05/21/042		11,235		11,218
Preferred Receivables Funding Corp.
1.03%, 04/19/042		20,391		20,381
1.04%, 04/23/042		22,333		22,319
1.04%, 05/20/042		4,855		4,848
Receivables Capital Corp.
1.04%, 04/14/042		8,545		8,542
Scaldis Capital LLC
1.05%, 06/30/042		6,952		6,934
Thames Asset Global Securitization No. 1 Inc.
1.03%, 04/19/042		9,710		9,705
Thunder Bay Funding Inc.
1.03%, 04/19/042		6,177		6,173
1.04%, 04/29/042		8,747		8,740
				435,184
TIME DEPOSITS – 0.65%
Abbey National Treasury Services PLC
1.08%, 04/01/042		67,970		67,970
1.33%, 02/10/052		9,710		9,709
1.39%, 02/02/052		9,710		9,709
1.40%, 10/25/042		19,420		19,423
Bank of New York
1.39%, 11/01/042		19,420		19,419
Bank of Nova Scotia
1.24%, 10/07/042		14,565		14,564
1.42%, 10/29/042		14,565		14,566
Canadian Imperial Bank of Commerce
1.24%, 10/07/042		14,565		14,564
1.38%, 11/22/042		4,855		4,855
1.40%, 10/29/042		19,420		19,420
National City Bank (Cleveland, Ohio)
1.02%, 04/01/042		29,130		29,130
Toronto-Dominion Bank
1.04%, 06/22/042		4,855		4,855
1.22%, 03/23/052		33,985		33,979
1.34%, 02/10/052		7,768		7,767
1.41%, 11/01/042		14,565		14,564
UBS Finance (Delaware)
1.06%, 04/01/042		38,840		38,840
1.10%, 09/08/042		19,420		19,325
1.11%, 12/17/042		29,130		28,897
				371,556
REPURCHASE AGREEMENTS – 0.21%
Bank of America, NA
1.06%, 04/01/042		38,840		38,840

70 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® S&P/TOPIX 150 INDEX FUND

March 31, 2004

Security	Principal		Value
Goldman, Sachs & Co.
1.08%, 04/01/042	$	77,680	$	77,680
				116,520
U.S. GOVERNMENT AGENCY NOTES – 0.08%
Federal Home Loan Mortgage Corporation
1.15%, 05/12/042		14,565		14,546
1.28%, 08/19/042		7,768		7,729
Federal National Mortgage Association
1.28%, 08/20/042		25,246		25,120
				47,395
TOTAL SHORT-TERM INVESTMENTS (Cost: $2,307,375)				2,307,375
TOTAL INVESTMENTS IN SECURITIES – 103.58% (Cost: $48,798,690)				58,773,881
Other Assets, Less Liabilities – (3.58%)				(2,031,794	)
NET ASSETS – 100.00%			$	56,742,087

¹ Non-income earning securities.

² All or a portion of this security represents investments of securities lending collateral.

³ Issuer is an affiliate of the Fund’s investment advisor. See Note 2.

⁴ Security exempt from registration under Rule 144A of the Securities Act of 1933.

These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 71

Schedule of Investments

iSHARES^® NASDAQ BIOTECHNOLOGY INDEX FUND

March 31, 2004

Security	Shares	Value
COMMON STOCKS – 100.03%
Amgen Inc.1	2,956,678	$	171,989,959
Biogen Idec Inc.1	873,448		48,563,709
Teva Pharmaceutical Industries Ltd. ADR	489,013		31,008,314
Gilead Sciences Inc.1	457,835		25,533,458
Genzyme Corp. – General Division1	527,761		24,825,877
Chiron Corp.1	436,062		19,191,089
Tularik Inc.1	699,137		17,163,813
Millennium Pharmaceuticals Inc.1	899,170		15,195,973
MGI Pharma Inc.1	239,918		14,697,377
Protein Design Labs Inc.1	606,844		14,455,024
Celgene Corp.1	299,628		14,277,274
Ligand Pharmaceuticals Inc. Class B1	707,527		14,221,293
QLT Inc.1	535,710		13,682,033
ImClone Systems Inc.1	265,143		13,485,173
Eon Labs Inc.1	197,529		13,250,245
American Pharmaceutical Partners Inc.1	282,103		13,241,915
MedImmune Inc.1	567,669		13,101,801
Nektar Therapeutics1	579,046		12,495,813
Impax Laboratories Inc.1	556,123		12,440,472
Onyx Pharmaceuticals Inc.1	296,382		11,991,616
Axcan Pharma Inc.1	627,028		11,951,154
Perrigo Co.	592,536		11,880,347
Invitrogen Corp.1	163,707		11,736,155
Neurocrine Biosciences Inc.1	189,506		11,199,805
Endo Pharmaceuticals Holdings Inc.1	456,578		11,149,635
OSI Pharmaceuticals Inc.1	286,120		10,987,008
Alkermes Inc.1	678,266		10,845,473
Cephalon Inc.1	185,363		10,623,154
Affymetrix Inc.1	310,510		10,479,712
Medicines Co. (The)1	317,243		10,218,397
Telik Inc.1	379,561		10,187,417
Sepracor Inc.1	199,593		9,600,423
ILEX Oncology Inc.1	394,701		9,441,248
Qiagen NV1	674,251		8,879,886
Martek Biosciences Corp.1	153,493		8,749,101
ICOS Corp.1	227,964		8,446,066
Amylin Pharmaceuticals Inc.1	354,370		8,395,025
Genta Inc.1	793,774		8,334,627
Enzon Pharmaceuticals Inc.1	532,532		8,216,969
Medarex Inc.1	900,161		8,074,444
NPS Pharmaceuticals Inc.1	278,092		7,939,527
Atrix Laboratories Inc.1	300,669		7,667,059
AtheroGenics Inc.1	330,397		7,556,179
Albany Molecular Research Inc.1	475,269		7,552,024
IDEXX Laboratories Inc.1	131,884		7,500,243
United Therapeutics Inc.1	314,634		7,497,728
Angiotech Pharmaceuticals Inc.1	303,648		7,412,048
Abgenix Inc.1	552,524		7,343,044
Transkaryotic Therapies Inc.1	425,609		7,303,450
Shire Pharmaceuticals Group PLC ADR1	246,524		7,255,201
Priority Healthcare Corp. Class B1	336,511		7,164,319
Gen-Probe Inc.1	214,224		7,157,224
Tanox Inc.1	478,717		7,128,096
Nabi Biopharmaceuticals1	448,705		6,977,363
Digene Corp.1	202,895		6,971,472
Human Genome Sciences Inc.1	556,368		6,971,291
Regeneron Pharmaceuticals Inc.1	506,851		6,883,037
Taro Pharmaceutical Industries Ltd.1	118,111		6,849,257
InterMune Inc.1	342,183		6,665,725
Exelixis Inc.1	745,628		6,375,119
Salix Pharmaceuticals Ltd.1	209,481		6,079,139
Cell Genesys Inc.1	501,248		6,035,026
Vicuron Pharmaceuticals Inc.1	259,351		5,900,235
ID Biomedical Corp.1	518,820		5,774,467
PAREXEL International Corp.1	313,534		5,602,853
Alexion Pharmaceuticals Inc.1	235,590		5,597,618
Pharmacopeia Inc.1	275,714		5,547,366
BioMarin Pharmaceutical Inc.1	728,229		5,476,282
XOMA Ltd.1	1,052,470		5,409,696
Incyte Corp.1	636,563		5,289,839
Kos Pharmaceuticals Inc.1	128,999		5,255,419
Antigenics Inc.1	490,282		5,226,406
Vertex Pharmaceuticals Inc.1	535,507		5,044,476
Neurochem Inc.1	230,670		4,934,031
Myriad Genetics Inc.1	299,670		4,860,647
deCODE genetics Inc.1	440,074		4,664,784
NeoPharm Inc.1	241,903		4,538,100
Isis Pharmaceuticals Inc.1	581,859		4,515,226
Diversa Corp.1	502,062		4,448,269
CV Therapeutics Inc.1	286,993		4,342,204

72 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® NASDAQ BIOTECHNOLOGY INDEX FUND

March 31, 2004

Security	Shares		Value
SciClone Pharmaceuticals Inc.1		778,580	$	4,204,332
Cubist Pharmaceuticals Inc.1		450,500		4,144,600
Flamel Technologies SA ADR1		156,885		4,066,616
ARIAD Pharmaceuticals Inc.1		426,990		4,039,325
Inspire Pharmaceuticals Inc.1		312,045		4,019,140
Adolor Corp.1		260,019		3,908,086
Connetics Corp.1		174,739		3,873,964
Encysive Pharmaceuticals Inc.1		368,055		3,783,605
Praecis Pharmaceuticals Inc.1		627,668		3,709,518
Corixa Corp.1		552,975		3,540,588
Dendreon Corp.1		263,086		3,499,044
Geron Corp.1		359,645		3,380,663
Cell Therapeutics Inc.1		365,889		3,095,421
Luminex Corp.1		317,951		2,877,457
Trimeris Inc.1		192,582		2,840,584
First Horizon Pharmaceutical Corp.1		173,701		2,737,528
Immunogen Inc.1		358,372		2,408,260
Immunomedics Inc.1		538,954		2,182,764
aaiPharma Inc.1		327,165		2,169,104
Novavax Inc.1		349,528		2,048,234
POZEN Inc.1		147,592		2,039,721
VaxGen Inc.1		158,390		1,796,143
TECHNE Corp.1		36,138		1,474,792
Avigen Inc.1		245,466		1,342,454
ArQule Inc.1		194,875		1,157,557
TOTAL COMMON STOCKS (Cost: $985,633,555)				1,037,259,263
SHORT-TERM INVESTMENTS – 25.76%
MONEY MARKET FUNDS – 9.53%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares2,3		66,925,650		66,925,650
Barclays Global Investors Funds Prime Money Market Fund, Institutional Shares2,3		24,933,596		24,933,596
BlackRock Temp Cash Money Market Fund2		1,167,089		1,167,089
Security	Shares or Principal		Value
Short-Term Investment Co. -Liquid Assets Money Market Portfolio2		5,811,936	$	5,811,936
				98,838,271
FLOATING RATE NOTES – 5.31%
Beta Finance Inc.
1.05%, 05/20/042,4	$	1,133,345		1,133,322
1.05%, 09/15/042,4		2,266,691		2,266,588
1.06%, 10/12/042,4		1,133,345		1,133,286
1.14%, 08/23/042,4		1,133,345		1,133,727
CC USA Inc.
1.05%, 04/19/042,4		997,344		997,341
1.06%, 05/24/042,4		2,266,691		2,266,658
1.09%, 07/15/042,4		1,133,345		1,133,463
1.51%, 02/15/052,4		1,473,349		1,475,399
Dorada Finance Inc.
1.04%, 07/01/042		793,342		791,256
1.05%, 05/20/042,4		2,266,691		2,266,645
1.24%, 08/09/042		566,673		566,642
1.48%, 01/18/052,4		1,700,018		1,699,951
Five Finance Inc.
1.06%, 04/15/042,4		1,133,345		1,133,345
HBOS Treasury Services PLC
1.10%, 04/22/052		2,266,691		2,266,691
Holmes Financing PLC
1.05%, 04/15/042		226,669		226,669
K2 USA LLC
1.05%, 08/16/042,4		566,673		566,641
1.05%, 09/27/042,4		2,448,026		2,447,847
1.06%, 04/13/042		1,133,345		1,133,344
1.06%, 05/17/042		1,133,345		1,133,338
1.46%, 01/12/052,4		1,133,345		1,133,257
Links Finance LLC
1.05%, 06/28/042		1,133,345		1,133,291
1.06%, 05/04/042		1,133,345		1,133,340
1.06%, 07/20/042		906,676		906,622
Nationwide Building Society
1.09%, 07/23/042,4		1,700,018		1,700,018
1.11%, 12/28/042,4		2,266,691		2,266,691
Northern Rock PLC
1.11%, 01/13/052,4		2,153,356		2,153,357

SCHEDULES OF INVESTMENTS 73

Schedule of Investments (Continued)

iSHARES^® NASDAQ BIOTECHNOLOGY INDEX FUND

March 31, 2004

Security	Principal		Value
Permanent Financing PLC
1.04%, 03/10/052	$	2,266,691	$	2,266,691
1.05%, 12/10/042		1,133,345		1,133,345
Sigma Finance Inc.
1.05%, 07/01/042		1,133,345		1,133,275
1.06%, 07/20/042		1,133,345		1,133,277
1.09%, 10/07/042		2,266,691		2,266,456
1.24%, 08/06/042		566,673		566,653
Tango Finance Corp.
1.05%, 01/18/052,4		997,344		997,263
1.06%, 07/15/042,4		680,007		679,942
1.07%, 02/25/052,4		1,269,347		1,269,118
1.10%, 07/06/042,4		680,007		679,989
WhistleJacket Capital LLC
1.05%, 09/15/042,4		1,133,345		1,133,242
1.32%, 02/04/052,4		566,673		566,577
White Pine Finance LLC
1.04%, 08/26/042,4		1,133,345		1,133,275
1.05%, 11/15/042,4		1,360,014		1,360,014
1.06%, 04/20/042,4		1,133,345		1,133,345
1.06%, 07/06/042,4		1,360,014		1,359,980
				55,011,171
COMMERCIAL PAPER – 4.90%
Alpine Securitization Corp.
1.03%, 04/14/042		1,065,345		1,064,948
1.03%, 04/20/042		1,133,345		1,132,729
1.03%, 04/23/042		1,337,347		1,336,506
1.03%, 04/26/042		1,133,345		1,132,535
Amsterdam Funding Corp.
1.03%, 05/05/042		918,010		917,117
Barton Capital Corp.
1.03%, 04/02/042		1,181,150		1,181,116
Blue Ridge Asset Funding Corp.
1.02%, 04/23/042		680,007		679,583
1.03%, 05/21/042		1,133,345		1,131,724
Corporate Asset Funding
1.05%, 05/21/042		1,178,679		1,176,968
Corporate Receivables Corp.
1.03%, 04/07/042		1,133,345		1,133,151
1.04%, 06/03/042		2,266,691		2,262,565
Delaware Funding Corp.
1.03%, 04/02/042		1,133,345		1,133,313
1.03%, 05/05/042		1,701,899		1,700,244
1.03%, 05/21/042		566,673		565,862
Edison Asset Securitization
1.07%, 09/21/042		1,133,345		1,127,518
Eureka Securitization Inc.
1.03%, 05/25/042		453,338		452,638
1.04%, 04/14/042		1,360,014		1,359,504
Falcon Asset Securitization
1.03%, 04/15/042		1,362,122		1,361,577
1.03%, 04/22/042		1,337,347		1,336,544
1.03%, 04/30/042		1,133,345		1,132,405
Galaxy Funding Inc.
1.05%, 05/17/042		1,133,345		1,131,832
Gemini Securitization Corp.
1.03%, 04/20/042		680,460		680,091
1.03%, 04/23/042		1,309,852		1,309,028
1.03%, 04/30/042		794,316		793,657
1.03%, 05/24/042		566,673		565,813
1.04%, 04/19/042		566,673		566,378
GIRO Funding US Corp.
1.05%, 05/19/042		566,673		565,879
Jupiter Securitization Corp.
1.03%, 04/16/042		2,266,691		2,265,718
1.03%, 04/19/042		3,060,032		3,058,456
1.03%, 04/28/042		1,360,014		1,358,964
1.03%, 04/30/042		1,930,654		1,929,052
Liberty Street Funding Corp.
1.04%, 04/08/042		794,158		793,997
1.05%, 04/05/042		918,010		917,903
Polonius Inc.
1.04%, 05/21/042		1,311,280		1,309,387
Preferred Receivables Funding Corp.
1.03%, 04/19/042		2,380,025		2,378,799
1.04%, 04/23/042		2,606,694		2,605,037
1.04%, 05/20/042		566,673		565,870
Receivables Capital Corp.
1.04%, 04/14/042		997,344		996,969
Scaldis Capital LLC
1.05%, 06/30/042		811,475		809,345

74 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® NASDAQ BIOTECHNOLOGY INDEX FUND

March 31, 2004

Security	Principal		Value
Thames Asset Global Securitization No. 1 Inc.
1.03%, 04/19/042	$	1,133,345	$	1,132,762
Thunder Bay Funding Inc.
1.03%, 04/19/042		720,921		720,550
1.04%, 04/29/042		1,020,917		1,020,092
				50,794,126
TIME DEPOSITS – 4.18%
Abbey National Treasury Services PLC
1.08%, 04/01/042		7,933,408		7,933,408
1.33%, 02/10/052		1,133,345		1,133,199
1.39%, 02/02/052		1,133,345		1,133,202
1.40%, 10/25/042		2,266,691		2,266,498
Bank of New York
1.39%, 11/01/042		2,266,691		2,266,558
Bank of Nova Scotia
1.24%, 10/07/042		1,700,018		1,699,930
1.42%, 10/29/042		1,700,018		1,700,092
Canadian Imperial Bank of Commerce
1.24%, 10/07/042		1,700,018		1,699,886
1.38%, 11/22/042		566,673		566,700
1.40%, 10/29/042		2,266,691		2,266,658
National City Bank (Cleveland, Ohio)
1.02%, 04/01/042		3,400,036		3,400,036
Toronto-Dominion Bank
1.04%, 06/22/042		566,673		566,673
1.22%, 03/23/052		3,966,708		3,966,030
1.34%, 02/10/052		906,676		906,559
1.41%, 11/01/042		1,700,018		1,699,919
UBS Finance (Delaware)
1.06%, 04/01/042		4,533,381		4,533,381
1.10%, 09/08/042		2,266,691		2,255,609
1.11%, 12/17/042		3,400,036		3,372,779
				43,367,117
REPURCHASE AGREEMENTS – 1.31%
Bank of America, NA
1.06%, 04/01/042		4,533,381		4,533,381
Goldman, Sachs & Co.
1.08%, 04/01/042		9,066,762		9,066,762
				13,600,143
U.S. GOVERNMENT AGENCY NOTES – 0.53%
Federal Home Loan Mortgage Corporation
1.15%, 05/12/042		1,700,018		1,697,791
1.28%, 08/19/042		906,676		902,163
Federal National Mortgage Association
1.28%, 08/20/042		2,946,698		2,931,925
				5,531,879
TOTAL SHORT-TERM INVESTMENTS (Cost: $267,142,707)				267,142,707
TOTAL INVESTMENTS IN SECURITIES – 125.79% (Cost: $1,252,776,262)				1,304,401,970
Other Assets, Less Liabilities – (25.79%)				(267,428,954	)
NET ASSETS – 100.00%			$	1,036,973,016

¹ Non-income earning securities.

² All or a portion of this security represents investments of securities lending collateral.

³ Issuer is an affiliate of the Fund’s investment advisor. See Note 2.

⁴ Security exempt from registration under Rule 144A of the Securities Act of 1933.

These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 75

Statements of Assets and Liabilities

iSHARES^® TRUST

March 31, 2004

	iShares S&P
	100 Index Fund			Global 100 Index Fund			Global Energy Sector Index Fund			Global Financials Sector Index Fund			Global Healthcare Sector Index Fund			Global Technology Sector Index Fund
ASSETS
Investments, at cost:
Unaffiliated issuers	$	439,734,417		$	175,886,599		$	86,655,322		$	28,658,505		$	140,142,705		$	29,943,180
Affiliates of the investment advisor	$	10,672,012		$	7,585,214		$	2,791,967		$	1,824,925		$	4,623,893		$	1,431,205
Foreign currency, at cost	$	—		$	5,033		$	7,668		$	40,276		$	18,212		$	4,796
Investments in securities, at value (including securities on loana) (Note 1):
Unaffiliated issuers	$	408,654,379		$	178,497,397		$	95,093,756		$	32,333,908		$	139,006,994		$	30,680,526
Affiliates of the investment advisor		10,672,012			7,765,123			2,791,967			1,856,352			4,623,893			1,431,205
Foreign currency, at value		—			5,050			8,118			40,273			18,193			5,005
Receivables:
Investment securities sold		3,172,928			—			—			—			—			—
Dividends and interest		674,008			447,894			162,062			129,176			299,516			34,053
Capital shares sold		5,270			—			5,554			—			—			—
Total Assets		423,178,597			186,715,464			98,061,457			34,359,709			143,948,596			32,150,789
LIABILITIES
Payables:
Investment securities purchased		3,293,174			—			—			37,844			—			—
Collateral for securities on loan (Note 5)		25,915,565			17,874,915			7,882,850			4,160,616			13,164,111			4,077,077
Capital shares redeemed		26,351			—			—			—			—			—
Distribution to shareholders		1,573,638			—			—			—			—			—
Advisory fees (Note 2)		149,136			104,715			78,212			32,153			128,530			29,112
Total Liabilities		30,957,864			17,979,630			7,961,062			4,230,613			13,292,641			4,106,189
NET ASSETS	$	392,220,733		$	168,735,834		$	90,100,395		$	30,129,096		$	130,655,955		$	28,044,600
Net assets consist of:
Paid-in capital	$	435,049,257		$	170,543,687		$	81,678,186		$	26,608,966		$	132,235,285		$	27,776,139
Undistributed net investment income		115,680			619,786			271,953			164,845			412,590			628
Accumulated net realized loss		(11,864,166	)		(5,218,653	)		(289,043	)		(352,599	)		(854,013	)		(470,203	)
Net unrealized appreciation (depreciation) on investments and translation of assets and liabilities in foreign currencies		(31,080,038	)		2,791,014			8,439,299			3,707,884			(1,137,907	)		738,036
NET ASSETS	$	392,220,733		$	168,735,834		$	90,100,395		$	30,129,096		$	130,655,955		$	28,044,600
Shares outstanding		7,100,000			2,950,000			1,500,000			500,000			2,800,000			550,000
Net asset value per share	$	55.24		$	57.20		$	60.07		$	60.26		$	46.66		$	50.99

^a Securities on loan with market values of $25,098,896, $17,202,981, $7,567,253, $3,986,376, $12,680,772 and $3,902,403, respectively. See Note 5.

See notes to financial statements.

76 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities (Continued)

iSHARES^® TRUST

March 31, 2004

	iShares S&P												iShares Nasdaq
	Global Telecommunications Sector Index Fund			Europe 350 Index Fund			Latin America 40 Index Fund			/TOPIX 150 Index Fund			Biotechnology Index Fund
ASSETS
Investments, at cost:
Unaffiliated issuers	$	23,368,582		$	866,584,741		$	68,760,405		$	47,993,076		$	1,160,917,016
Affiliates of the investment advisor	$	1,180,885		$	81,912,862		$	—		$	805,614		$	91,859,246
Foreign currency, at cost	$	23,483		$	511,680		$	261,936		$	22,784		$	—
Investments in securities, at value (including securities on loana) (Note 1):
Unaffiliated issuers	$	22,920,033		$	900,967,937		$	83,477,128		$	57,968,267		$	1,212,542,724
Affiliates of the investment advisor		1,180,885			82,670,464			—			805,614			91,859,246
Foreign currency, at value		23,623			510,941			257,644			23,973			—
Receivables:
Investment securities sold		—			638,740			—			—			309,869
Dividends and interest		35,934			3,840,341			361,182			268,643			42,063
Capital shares sold		—			862,513			—			—			—
Total Assets		24,160,475			989,490,936			84,095,954			59,066,497			1,304,753,902
LIABILITIES
Payables:
Investment securities purchased		—			400,690			—			—			—
Collateral for securities on loan (Note 5)		3,391,306			215,701,652			—			2,287,974			267,049,357
Due to bank		—			—			68,482			—			—
Advisory fees (Note 2)		22,469			724,758			67,424			36,436			731,529
Total Liabilities		3,413,775			216,827,100			135,906			2,324,410			267,780,886
NET ASSETS	$	20,746,700		$	772,663,836		$	83,960,048		$	56,742,087		$	1,036,973,016
Net assets consist of:
Paid-in capital	$	22,008,400		$	758,241,370		$	69,563,509		$	46,956,059		$	1,093,674,593
Undistributed net investment income		48,246			3,445,132			412,708			189,879			—
Accumulated net realized loss		(861,843	)		(24,193,096	)		(728,164	)		(385,160	)		(108,327,285	)
Net unrealized appreciation (depreciation) on investments and translation of assets and liabilities in foreign currencies		(448,103	)		35,170,430			14,711,995			9,981,309			51,625,708
NET ASSETS	$	20,746,700		$	772,663,836		$	83,960,048		$	56,742,087		$	1,036,973,016
Shares outstanding		450,000			12,000,000			1,350,000			600,000			13,400,000
Net asset value per share	$	46.10		$	64.39		$	62.19		$	94.57		$	77.39

^a Securities on loan with market values of $3,230,091, $204,966,751, $—, $2,174,298 and $257,548,470, respectively. See Note 5.

See notes to financial statements.

FINANCIAL STATEMENTS 77

Statements of Operations

iSHARES^® TRUST

Year Ended March 31, 2004

	iSHARES S&P
	100 Index Fund			Global 100 Index Fund			Global Energy Sector Index Fund			Global Financials Sector Index Fund			Global Healthcare Sector Index Fund			Global Technology Sector Index Fund
NET INVESTMENT INCOME
Dividendsa	$	7,579,365		$	2,076,607b		$	945,472		$	584,934b		$	940,811		$	78,847
Interestb		2,930			2,053			661			271			600			113
Securities lending incomeb		19,848			16,356			8,688			4,857			4,385			1,491
Total investment income		7,602,143			2,095,016			954,821			590,062			945,796			80,451
EXPENSES (Note 2)
Advisory fees		807,961			412,967			241,568			137,379			322,900			102,307
Stock dividend tax expense		—			—			—			—			—			351
Total expenses		807,961			412,967			241,568			137,379			322,900			102,658
Net investment income (loss)		6,794,182			1,682,049			713,253			452,683			622,896			(22,207	)
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments		(8,794,047	)		(2,536,229	)		(187,986	)		(77,696	)		(591,162	)		(303,273	)
In-kind redemptions		58,358,948			—			—			1,517,619			—			—
Foreign currency transactions		—			23,156			5,771			7,325			5,459			1,198
Net realized gain (loss)c		49,564,901			(2,513,073	)		(182,215	)		1,447,248			(585,703	)		(302,075	)
Net change in unrealized appreciation (depreciation) on:
Investments		39,053,099			28,009,657			9,966,626			6,255,518			2,404,858			4,412,187
Translation of assets and liabilities in foreign currencies		—			(2,028	)		502			837			(2,141	)		529
Net change in unrealized appreciation (depreciation)		39,053,099			28,007,629			9,967,128			6,256,355			2,402,717			4,412,716
Net realized and unrealized gain		88,618,000			25,494,556			9,784,913			7,703,603			1,817,014			4,110,641
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	95,412,182		$	27,176,605		$	10,498,166		$	8,156,286		$	2,439,910		$	4,088,434

^a Net of foreign withholding tax of $—, $116,286, $71,014, $31,394, $36,013 and $1,770, respectively.

^b Includes income earned from affiliates of the Funds’ investment advisor. See Note 2.

^c Includes realized gain (loss) on sales of investments in affiliates of the Funds’ investment advisor. See Note 2.

See notes to financial statements.

78 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations (Continued)

iSHARES^® TRUST

Year Ended March 31, 2004

	iShares S&P												iShares Nasdaq
	Global Telecommunications Sector Index Fund			Europe 350 Index Fund			Latin America 40 Index Fund			/TOPIX 150 Index Fund			Biotechnology Index Fund
NET INVESTMENT INCOME
Dividendsa	$	326,989		$	14,795,550b		$	1,266,801		$	356,316		$	60,380
Interestb		158			2,787			847			134			1,020
Securities lending incomeb		3,266			416,213			—			2,614			424,867
Total investment income		330,413			15,214,550			1,267,648			359,064			486,267
EXPENSES (Note 2)
Advisory fees		98,156			3,299,161			203,852			119,832			3,555,679
Total expenses		98,156			3,299,161			203,852			119,832			3,555,679
Net investment income (loss)		232,257			11,915,389			1,063,796			239,232			(3,069,412	)
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments		(79,719	)		(9,060,160	)		(448,303	)		(76,932	)		(85,815,657	)
In-kind redemptions		—			—			610,899			—			213,280,707
Foreign currency transactions		5,757			219,148			(7,518	)		5,713			—
Net realized gain (loss)c		(73,962	)		(8,841,012	)		155,078			(71,219	)		127,465,050
Net change in unrealized appreciation (depreciation) on:
Investments		3,993,635			201,058,727			16,850,768			13,033,739			148,140,089
Translation of assets and liabilities in foreign currencies		(2,299	)		8,103			(4,562	)		5,389			—
Net change in unrealized appreciation (depreciation)		3,991,336			201,066,830			16,846,206			13,039,128			148,140,089
Net realized and unrealized gain		3,917,374			192,225,818			17,001,284			12,967,909			275,605,139
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	4,149,631		$	204,141,207		$	18,065,080		$	13,207,141		$	272,535,727

^a Net of foreign withholding tax of $12,531, $1,530,763, $131,018, $29,282 and $8,226, respectively.

^b Includes income earned from affiliates of the Funds’ investment advisor. See Note 2.

^c Includes realized gain (loss) on sales of investments in affiliates of the Funds’ investment advisor. See Note 2.

See notes to financial statements.

FINANCIAL STATEMENTS 79

Statements of Changes in Net Assets

iSHARES^® TRUST

	iShares S&P 100 Index Fund						iShares S&P Global 100 Index Fund						iShares S&P Global Energy Sector Index Fund
	For the year ended March 31, 2004			For the year ended March 31, 2003			For the year ended March 31, 2004			For the year ended March 31, 2003			For the year ended March 31, 2004			For the year ended March 31, 2003
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	6,794,182		$	2,759,541		$	1,682,049		$	752,946		$	713,253		$	274,873
Net realized gain (loss)		49,564,901			(1,393,438	)		(2,513,073	)		(1,023,689	)		(182,215	)		(90,561	)
Net change in unrealized appreciation (depreciation)		39,053,099			(41,964,818	)		28,007,629			(13,313,320	)		9,967,128			(2,972,584	)
Net increase (decrease) in net assets resulting from operations		95,412,182			(40,598,715	)		27,176,605			(13,584,063	)		10,498,166			(2,788,272	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(6,901,272	)		(2,612,939	)		(1,389,330	)		(579,587	)		(495,031	)		(273,069	)
Total distributions to shareholders		(6,901,272	)		(2,612,939	)		(1,389,330	)		(579,587	)		(495,031	)		(273,069	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		451,708,044			334,496,579			77,805,447			47,130,609			62,310,886			4,475,704
Cost of shares redeemed		(447,209,011	)		(107,777,106	)		—			(13,490,190	)		—			—
Net increase in net assets from capital share transactions		4,499,033			226,719,473			77,805,447			33,640,419			62,310,886			4,475,704
INCREASE IN NET ASSETS		93,009,943			183,507,819			103,592,722			19,476,769			72,314,021			1,414,363
NET ASSETS:
Beginning of year		299,210,790			115,702,971			65,143,112			45,666,343			17,786,374			16,372,011
End of year	$	392,220,733		$	299,210,790		$	168,735,834		$	65,143,112		$	90,100,395		$	17,786,374
Undistributed net investment income included in net assets at end of year	$	115,680		$	222,770		$	619,786		$	303,912		$	271,953		$	47,960
SHARES ISSUED AND REDEEMED:
Shares sold		8,550,000			7,350,000			1,400,000			1,050,000			1,100,000			100,000
Shares redeemed		(8,400,000	)		(2,400,000	)		—			(300,000	)		—			—
Net increase in shares outstanding		150,000			4,950,000			1,400,000			750,000			1,100,000			100,000

See notes to financial statements.

80 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^® TRUST

	iShares S&P Global Financials Sector Index Fund						iShares S&P Global Healthcare Sector Index Fund						iShares S&P Global Technology Sector Index Fund
	For the year ended March 31, 2004			For the year ended March 31, 2003			For the year ended March 31, 2004			For the year ended March 31, 2003			For the year ended March 31, 2004			For the year ended March 31, 2003
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss)	$	452,683		$	217,420		$	622,896		$	183,602		$	(22,207	)	$	(9,818	)
Net realized gain (loss)		1,447,248			(271,700	)		(585,703	)		(250,130	)		(302,075	)		(140,642	)
Net change in unrealized appreciation (depreciation)		6,256,355			(2,968,565	)		2,402,717			(3,211,239	)		4,412,716			(2,776,464	)
Net increase (decrease) in net assets resulting from operations		8,156,286			(3,022,845	)		2,439,910			(3,277,767	)		4,088,434			(2,926,924	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(393,331	)		(171,448	)		(302,106	)		(135,321	)		—			—
Total distributions to shareholders		(393,331	)		(171,448	)		(302,106	)		(135,321	)		—			—
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		11,925,413			8,524,646			102,644,475			12,114,681			17,264,306			1,832,339
Cost of shares redeemed		(5,552,978	)		—			—			—			—			—
Net increase in net assets from capital share transactions		6,372,435			8,524,646			102,644,475			12,114,681			17,264,306			1,832,339
INCREASE (DECREASE) IN NET ASSETS		14,135,390			5,330,353			104,782,279			8,701,593			21,352,740			(1,094,585	)
NET ASSETS:
Beginning of year		15,993,706			10,663,353			25,873,676			17,172,083			6,691,860			7,786,445
End of year	$	30,129,096		$	15,993,706		$	130,655,955		$	25,873,676		$	28,044,600		$	6,691,860
Undistributed net investment income (accumulated net investment loss) included in net assets at end of year	$	164,845		$	97,895		$	412,590		$	86,342		$	628		$	(86	)
SHARES ISSUED AND REDEEMED:
Shares sold		200,000			200,000			2,150,000			300,000			350,000			50,000
Shares redeemed		(100,000	)		—			—			—			—			—
Net increase in shares outstanding		100,000			200,000			2,150,000			300,000			350,000			50,000

See notes to financial statements.

FINANCIAL STATEMENTS 81

Statements of Changes in Net Assets (Continued)

iSHARES^® TRUST

	iShares S&P Global Telecommunications Sector Index Fund						iShares S&P Europe 350 Index Fund						iShares S&P Latin America 40 Index Fund
	For the year ended March 31, 2004			For the year ended March 31, 2003			For the year ended March 31, 2004			For the year ended March 31, 2003			For the year ended March 31, 2004			For the year ended March 31, 2003
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	232,257		$	193,589		$	11,915,389		$	10,622,285		$	1,063,796		$	209,588
Net realized gain (loss)		(73,962	)		(756,255	)		(8,841,012	)		(41,121,057	)		155,078			(118,511	)
Net change in unrealized appreciation (depreciation)		3,991,336			(2,676,886	)		201,066,830			(142,335,698	)		16,846,206			(3,750,062	)
Net increase (decrease) in net assets resulting from operations		4,149,631			(3,239,552	)		204,141,207			(172,834,470	)		18,065,080			(3,658,985	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(226,000	)		(191,936	)		(10,888,610	)		(9,608,612	)		(715,130	)		(184,159	)
Total distributions to shareholders		(226,000	)		(191,936	)		(10,888,610	)		(9,608,612	)		(715,130	)		(184,159	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		6,803,108			—			204,224,514			229,906,285			60,740,238			7,085,754
Cost of shares redeemed		—			—			—			(242,033,817	)		(3,025,252	)		(2,220,995	)
Net increase (decrease) in net assets from capital share transactions		6,803,108			—			204,224,514			(12,127,532	)		57,714,986			4,864,759
INCREASE (DECREASE) IN NET ASSETS		10,726,739			(3,431,488	)		397,477,111			(194,570,614	)		75,064,936			1,021,615
NET ASSETS:
Beginning of year		10,019,961			13,451,449			375,186,725			569,757,339			8,895,112			7,873,497
End of year	$	20,746,700		$	10,019,961		$	772,663,836		$	375,186,725		$	83,960,048		$	8,895,112
Undistributed net investment income included in net assets at end of year	$	48,246		$	36,232		$	3,445,132		$	2,199,205		$	412,708		$	71,560
SHARES ISSUED AND REDEEMED:
Shares sold		150,000			—			3,250,000			4,450,000			1,150,000			150,000
Shares redeemed		—			—			—			(5,350,000	)		(50,000	)		(50,000	)
Net increase (decrease) in shares outstanding		150,000			—			3,250,000			(900,000	)		1,100,000			100,000

See notes to financial statements.

82 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^® TRUST

	iShares S&P/TOPIX 150 Index Fund						iShares Nasdaq Biotechnology Index Fund
	For the year ended March 31, 2004			For the year ended March 31, 2003			For the year ended March 31, 2004			For the year ended March 31, 2003
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss)	$	239,232		$	60,188		$	(3,069,412	)	$	(1,787,219	)
Net realized gain (loss)		(71,219	)		(4,920,264	)		127,465,050			(101,461,787	)
Net change in unrealized appreciation (depreciation)		13,039,128			(1,373,166	)		148,140,089			(40,953,420	)
Net increase (decrease) in net assets resulting from operations		13,207,141			(6,233,242	)		272,535,727			(144,202,426	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(71,560	)		(104,906	)		—			—
Total distributions to shareholders		(71,560	)		(104,906	)		—			—
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		35,025,389			—			951,318,316			654,289,219
Cost of shares redeemed		—			(18,197,922	)		(720,812,825	)		(265,962,047	)
Net increase (decrease) in net assets from capital share transactions		35,025,389			(18,197,922	)		230,505,491			388,327,172
INCREASE (DECREASE) IN NET ASSETS		48,160,970			(24,536,070	)		503,041,218			244,124,746
NET ASSETS:
Beginning of year		8,581,117			33,117,187			533,931,798			289,807,052
End of year	$	56,742,087		$	8,581,117		$	1,036,973,016		$	533,931,798
Undistributed net investment income included in net assets at end of year	$	189,879		$	16,494		$	—		$	—
SHARES ISSUED AND REDEEMED:
Shares sold		450,000			—			12,950,000			12,100,000
Shares redeemed		—			(300,000	)		(10,000,000	)		(5,400,000	)
Net increase (decrease) in shares outstanding		450,000			(300,000	)		2,950,000			6,700,000

See notes to financial statements.

FINANCIAL STATEMENTS 83

Financial Highlights

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares S&P 100 Index Fund
	Year ended Mar. 31, 2004			Year ended Mar. 31, 2003			Year ended Mar. 31, 2002			Period from Oct. 23, 20001 to Mar. 31, 2001
Net asset value, beginning of period	$	43.05		$	57.85		$	59.17		$	73.44
Income from investment operations:
Net investment income		0.89			0.66			0.61			0.31
Net realized and unrealized gain (loss)		12.21			(14.79	)		(1.34	)		(14.28	)
Total from investment operations		13.10			(14.13	)		(0.73	)		(13.97	)
Less distributions from:
Net investment income		(0.91	)		(0.67	)		(0.59	)		(0.30	)
Total distributions		(0.91	)		(0.67	)		(0.59	)		(0.30	)
Net asset value, end of period	$	55.24		$	43.05		$	57.85		$	59.17
Total return		30.55	%		(24.49	)%		(1.23	)%		(19.07	)%2
Ratios/Supplemental data:
Net assets, end of period (000s)	$	392,221		$	299,211		$	115,703		$	88,762
Ratio of expenses to average net assets3		0.20	%		0.20	%		0.20	%		0.20	%
Ratio of net investment income to average net assets3		1.68	%		1.63	%		1.12	%		1.03	%
Portfolio turnover rate4		5	%		4	%		13	%		5	%

¹ Commencement of operations.

² Not annualized.

³ Annualized for periods of less than one year.

⁴ Excludes portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.

84 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares S&P Global 100 Index Fund
	Year ended Mar. 31, 2004			Year ended Mar. 31, 2003			Year ended Mar. 31, 2002			Period from Dec. 5, 20001 to Mar. 31, 2001
Net asset value, beginning of period	$	42.03		$	57.08		$	60.83		$	72.50
Income from investment operations:
Net investment income		0.66			0.59			0.65			0.18
Net realized and unrealized gain (loss)		15.16			(15.09	)		(3.87	)		(11.73	)
Total from investment operations		15.82			(14.50	)		(3.22	)		(11.55	)
Less distributions from:
Net investment income		(0.65	)		(0.55	)		(0.53	)		(0.12	)
Total distributions		(0.65	)		(0.55	)		(0.53	)		(0.12	)
Net asset value, end of period	$	57.20		$	42.03		$	57.08		$	60.83
Total return		37.68	%		(25.46	)%		(5.32	)%		(15.94	)%2
Ratios/Supplemental Data:
Net assets, end of period (000s)	$	168,736		$	65,143		$	45,666		$	103,407
Ratio of expenses to average net assets3		0.40	%		0.40	%		0.40	%		0.40	%
Ratio of net investment income to average net assets3		1.63	%		1.60	%		1.08	%		0.88	%
Portfolio turnover rate4		4	%		5	%		4	%		5	%

¹ Commencement of operations.

² Not annualized.

³ Annualized for periods of less than one year.

⁴ Excludes portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 85

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughtout each period)

	iShares S&P Global Energy Sector Index Fund									iShares S&P Global Financials Sector Index Fund
	Year ended Mar. 31, 2004			Year ended Mar. 31, 2003			Period from Nov. 12, 20011 to Mar. 31, 2002			Year ended Mar. 31, 2004			Year ended Mar. 31, 2003			Period from Nov. 12, 20011 to Mar. 31, 2002
Net asset value, beginning of period	$	44.47		$	54.57		$	49.64		$	39.98		$	53.32		$	51.00
Income from investment operations:
Net investment income		0.68			0.88			0.22			1.38			0.56			0.29
Net realized and unrealized gain (loss)		15.54			(10.07	)		4.78			20.21			(13.33	)		2.07
Total from investment operations		16.22			(9.19	)		5.00			21.59			(12.77	)		2.36
Less distributions from:
Net investment income		(0.62	)		(0.91	)		(0.07	)		(1.31	)		(0.57	)		(0.04	)
Total distributions		(0.62	)		(0.91	)		(0.07	)		(1.31	)		(0.57	)		(0.04	)
Net asset value, end of period	$	60.07		$	44.47		$	54.57		$	60.26		$	39.98		$	53.32
Total return		36.55	%		(16.91	)%		10.10	%2		54.23	%		(24.03	)%		4.64	%2
Ratios/Supplemental data:
Net assets, end of period (000s)	$	90,100		$	17,786		$	16,372		$	30,129		$	15,994		$	10,663
Ratio of expenses to average net assets3		0.65	%		0.65	%		0.65	%		0.65	%		0.65	%		0.65	%
Ratio of net investment income to average net assets3		1.92	%		1.89	%		1.17	%		2.14	%		2.04	%		1.44	%
Portfolio turnover rate4		4	%		9	%		5	%		8	%		8	%		2	%

¹ Commencement of operations.

² Not annualized.

³ Annualized for periods of less than one year.

⁴ Excludes portfolio securities received or delivered as a result of capital share transactions in Creation Units.

See notes to financial statements.

86 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares S&P Global Healthcare Sector Index Fund									iShares S&P Global Technology Sector Index Fund
	Year ended Mar. 31, 2004			Year ended Mar. 31, 2003			Period from Nov. 13, 20011 to Mar. 31, 2002			Year ended Mar. 31, 2004			Year ended Mar. 31, 2003			Period from Nov. 12, 20011 to Mar. 31, 2002
Net asset value, beginning of period	$	39.81		$	49.06		$	49.53		$	33.46		$	51.91		$	53.19
Income from investment operations:
Net investment income (loss)		0.31			0.28			0.11			(0.04	)		(0.05	)		(0.19	)
Net realized and unrealized gain (loss)		6.84			(9.28	)		(0.57	)		17.57			(18.40	)		(1.09	)
Total from investment operations		7.15			(9.00	)		(0.46	)		17.53			(18.45	)		(1.28	)
Less distributions from:
Net investment income		(0.30	)		(0.25	)		(0.01	)		—			—			—
Total distributions		(0.30	)		(0.25	)		(0.01	)		—			—			—
Net asset value, end of period	$	46.66		$	39.81		$	49.06		$	50.99		$	33.46		$	51.91
Total return		17.98	%		(18.36	)%		(0.92	)%2		52.39	%		(35.54	)%		(2.40	)%2
Ratios/Supplemental data:
Net assets, end of period (000s)	$	130,656		$	25,874		$	17,172		$	28,045		$	6,692		$	7,786
Ratio of expenses to average net assets3		0.65	%		0.65	%		0.65	%		0.65	%		0.66	%		0.65	%
Ratio of expenses to average net assets exclusive of foreign taxes on stock dividends3		0.65	%		0.65	%		0.65	%		0.65	%		0.65	%		0.65	%
Ratio of net investment income (loss) to average net assets3		1.25	%		0.96	%		0.62	%		(0.14	)%		(0.16	)%		(0.44	)%
Portfolio turnover rate4		6	%		4	%		1	%		5	%		4	%		2	%

¹ Commencement of operations.

² Not annualized.

³ Annualized for periods of less than one year.

⁴ Excludes portfolio securities received or delivered as a result of capital share transactions in Creation Units.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 87

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughtout each period)

	iShares S&P Global Telecommunications Sector Index Fund
	Year ended Mar. 31, 2004			Year ended Mar. 31, 2003			Period from Nov. 12, 20011 to Mar. 31, 2002
Net asset value, beginning of period	$	33.40		$	44.84		$	50.68
Income from investment operations:
Net investment income		0.62			0.65			0.11
Net realized and unrealized gain (loss)		12.73			(11.45	)		(5.93	)
Total from investment operations		13.35			(10.80	)		(5.82	)
Less distributions from:
Net investment income		(0.65	)		(0.64	)		(0.02	)
Total distributions		(0.65	)		(0.64	)		(0.02	)
Net asset value, end of period	$	46.10		$	33.40		$	44.84
Total return		40.06	%		(24.24	)%		(11.50	)%2
Ratios/Supplemental data:
Net assets, end of period (000s)	$	20,747		$	10,020		$	13,451
Ratio of expenses to average net assets3		0.65	%		0.65	%		0.65	%
Ratio of net investment income to average net assets3		1.54	%		1.78	%		0.61	%
Portfolio turnover rate4		7	%		9	%		2	%

¹ Commencement of operations.

² Not annualized.

³ Annualized for periods of less than one year.

⁴ Excludes portfolio securities received or delivered as a result of capital share transactions in Creation Units.

See notes to financial statements.

88 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughtout each period)

	iShares S&P Europe 350 Index Fund
	Year ended Mar. 31, 2004			Year ended Mar. 31, 2003			Year ended Mar. 31, 2002			Period from Jul. 25, 20001 to Mar. 31, 2001
Net asset value, beginning of period	$	42.88		$	59.04		$	63.13		$	79.32
Income from investment operations:
Net investment income		1.13			1.18			0.83			0.38
Net realized and unrealized gain (loss)		21.49			(16.28	)		(4.08	)		(16.30	)
Total from investment operations		22.62			(15.10	)		(3.25	)		(15.92	)
Less distributions from:
Net investment income		(1.11	)		(1.06	)		(0.84	)		(0.27	)
Total distributions		(1.11	)		(1.06	)		(0.84	)		(0.27	)
Net asset value, end of period	$	64.39		$	42.88		$	59.04		$	63.13
Total return		52.85	%		(25.73	)%		(5.16	)%		(20.10	)%2
Ratios/Supplemental data:
Net assets, end of period (000s)	$	772,664		$	375,187		$	569,757		$	154,656
Ratio of expenses to average net assets3		0.60	%		0.60	%		0.60	%		0.60	%
Ratio of net investment income to average net assets3		2.17	%		2.11	%		1.49	%		1.12	%
Portfolio turnover rate4		5	%		6	%		4	%		24	%

¹ Commencement of operations.

² Not annualized.

³ Annualized for periods of less than one year.

⁴ Excludes portfolio securities received or delivered as a result of capital share transactions in Creation Units.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 89

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughtout each period)

	iShares S&P Latin America 40 Index Fund									iShares S&P/TOPIX 150 Index Fund
	Year ended Mar. 31, 2004			Year ended Mar. 31, 2003			Period from Oct. 25, 20011 to Mar. 31, 2002			Year ended Mar. 31, 2004			Year ended Mar. 31, 2003			Period from Oct. 23, 20011 to Mar. 31, 2002
Net asset value, beginning of period	$	35.58		$	52.49		$	41.51		$	57.21		$	73.59		$	77.39
Income from investment operations:
Net investment income		0.77			0.89			0.61			0.44			0.60			0.10
Net realized and unrealized gain (loss)		26.58			(16.88	)		10.64			37.16			(16.28	)		(3.90	)
Total from investment operations		27.35			(15.99	)		11.25			37.60			(15.68	)		(3.80	)
Less distributions from:
Net investment income		(0.74	)		(0.92	)		(0.27	)		(0.24	)		(0.70	)		—
Total distributions		(0.74	)		(0.92	)		(0.27	)		(0.24	)		(0.70	)		—
Net asset value, end of period	$	62.19		$	35.58		$	52.49		$	94.57		$	57.21		$	73.59
Total Return		77.07	%		(30.54	)%		27.16	%2		65.79	%		(21.36	)%		(4.91	)%2
Ratios/Supplemental data:
Net assets, end of period (000s)	$	83,960		$	8,895		$	7,873		$	56,742		$	8,581		$	33,117
Ratio of expenses to average net assets3		0.50	%		0.50	%		0.50	%		0.50	%		0.50	%		0.50	%
Ratio of net investment income to average net assets3		2.61	%		2.42	%		2.94	%		1.00	%		0.26	%		0.32	%
Portfolio turnover rate4		13	%		9	%		2	%		4	%		4	%		5	%

¹ Commencement of operations.

² Not annualized.

³ Annualized for periods of less than one year.

⁴ Excludes portfolio securities received or delivered as a result of capital share transactions in Creation Units.

See notes to financial statements.

90 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughtout each period)

	iShares Nasdaq Biotechnology Index Fund
	Year ended Mar. 31, 2004			Year ended Mar. 31, 2003			Year ended Mar. 31, 2002			Period from Feb. 5, 20011 to Mar. 31, 2001
Net asset value, beginning of period	$	51.09		$	77.28		$	76.81		$	99.66
Income from investment operations:
Net investment loss		(0.23	)		(0.17	)		(0.17	)		(0.05	)
Net realized and unrealized gain (loss)		26.53			(26.02	)		0.64			(22.80	)
Total from investment operations		26.30			(26.19	)		0.47			(22.85	)
Net asset value, end of period	$	77.39		$	51.09		$	77.28		$	76.81
Total Return		51.48	%		(33.89	)%		0.61	%		(22.93	)%2
Ratios/Supplemental data:
Net assets, end of period (000s)	$	1,036,973		$	533,932		$	289,807		$	99,847
Ratio of expenses to average net assets3		0.50	%		0.50	%		0.50	%		0.50	%
Ratio of net investment loss to average net assets3		(0.43	)%		(0.43	)%		(0.46	)%		(0.50	)%
Portfolio turnover rate4		36	%		48	%		17	%		9	%

¹ Commencement of operations.

² Not annualized.

³ Annualized for periods of less than one year.

⁴ Excludes portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 91

Notes to the Financial Statements

iSHARES^® TRUST

1. SIGNIFICANT ACCOUNTING POLICIES

iShares Trust (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 statutory trust pursuant to an Agreement and Declaration of Trust dated December 16, 1999. As of March 31, 2004, the Trust offered 61 investment portfolios or funds.

These financial statements relate only to the iShares S&P 100, iShares S&P Global 100, iShares S&P Global Energy Sector, iShares S&P Global Financials Sector, iShares S&P Global Healthcare Sector, iShares S&P Global Technology Sector, iShares S&P Global Telecommunications Sector, iShares S&P Europe 350, iShares S&P Latin America 40, iShares S&P/TOPIX 150 and iShares Nasdaq Biotechnology Index Funds (each a “Fund”, collectively the “Funds”).

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 achieve each Fund’s investment objective. Each of the Funds is classified as a non-diversified fund under the 1940 Act, except for the iShares S&P Europe 350 Index Fund, which is classified as a diversified fund. Non-diversified funds generally hold stocks of fewer companies 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 affecting these companies.

The iShares S&P Global 100, iShares S&P Global Energy Sector, iShares S&P Global Financials Sector, iShares S&P Global Healthcare Sector, iShares S&P Global Technology Sector, iShares S&P Global Telecommunications Sector, iShares S&P Europe 350, iShares S&P Latin America 40 and iShares S&P/TOPIX 150 Index Funds invest in the securities of non-U.S. issuers, that may trade in non-U.S. markets, which may involve certain considerations and risks not typically associated with securities of U.S. issuers. Such risks include, but are not limited to: generally less liquid and less efficient securities markets; generally greater price volatility; exchange rate fluctuations and exchange controls; imposition of restrictions on the expatriation of funds or other assets of a Fund; less publicly available information about issuers; the imposition of withholding or other taxes; higher transaction and custody costs; settlement delays and risk of loss attendant in settlement procedures; difficulties in enforcing contractual obligations; less regulation of securities markets; different accounting, disclosure and reporting requirements; more substantial governmental involvement in the economy; higher inflation rates; greater social, economic and political uncertainties; the risk of nationalization or expropriation of assets; and the risk of war.

Under the Trust’s organizational documents, the Funds’ officers and trustees are indemnified against certain liabilities that may arise out of the performance of their duties to the Funds. Additionally, in the normal course of business, the Funds enter into contracts with service providers that contain general indemnification clauses. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred.

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 for which the primary market is the National Association of Securities Dealers Automated Quotations National Market System (“NASDAQ”) are valued at the NASDAQ Official Closing Price. Securities not listed on an exchange or national securities market, or securities for which there were no sales prices, are valued at the latest quoted bid prices. U.S. Government obligations are valued at the latest quoted bid price. Short-term investments are valued at amortized cost, which approximates market value. Mutual fund shares are valued at net

92 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to the Financial Statements (Continued)

iSHARES^® TRUST

asset value. Any securities, including restricted securities or other assets for which market quotations are not readily available, or for which a significant event has occurred since the time of the most recent market quotation, are valued in accordance with fair value pricing 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 at the end of each day. 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.

FOREIGN TAXES

Taiwan levies a tax at a rate of up to 20%, based on the par value of stock dividends received by the iShares S&P Global Technology Sector Index Fund. This tax was paid by the Fund and is disclosed in its Statement of Operations.

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.

At March 31, 2004, the tax year-end of the Funds, the components of distributable earnings (accumulated losses) on a tax basis were as follows:

iShares Index Fund	Undistributed Ordinary Income		Unrealized Appreciation (Depreciation)			Capital and Other Losses			Total Distributable Earnings (Accumulated Losses)
S&P 100	$	115,680	$	(36,841,486	)	$	(6,102,718	)	$	(42,828,524	)
S&P Global 100		619,786		133,916			(2,561,555	)		(1,807,853	)
S&P Global Energy Sector		271,953		8,394,627			(244,371	)		8,422,209
S&P Global Financials Sector		177,211		3,638,933			(296,014	)		3,520,130
S&P Global Healthcare Sector		412,590		(1,445,171	)		(546,749	)		(1,579,330	)
S&P Global Technology Sector		—		708,389			(439,928	)		268,461
S&P Global Telecommunications Sector		48,246		(558,714	)		(751,232	)		(1,261,700	)
S&P Europe 350		3,907,489		23,835,349			(13,320,372	)		14,422,466
S&P Latin America 40		412,708		14,323,405			(339,574	)		14,396,539
S&P/TOPIX 150		189,879		9,925,971			(329,822	)		9,786,028
Nasdaq Biotechnology		—		21,211,197			(77,912,774	)		(56,701,577	)

NOTES TO THE FINANCIAL STATEMENTS 93

Notes to the Financial Statements (Continued)

iSHARES^® TRUST

The differences between the components of distributable earnings (accumulated losses) on a tax basis and the amounts reflected in the Statements of Assets and Liabilities are primarily due to differing treatments of wash sales.

For the years ended March 31, 2004 and March 31, 2003, the tax characterization of distributions paid for each Fund was equal to the book characterization of distributions paid. The total distributions and distributions per share are disclosed in the accompanying Statements of Changes in Net Assets and the Financial Highlights for all the Funds.

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 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 year ended March 31, 2004.

From November 1, 2003 to March 31, 2004, the Funds incurred net realized capital losses or net foreign currency losses. As permitted by tax regulations, the Funds have elected to defer those losses and treat them as arising in the year ending March 31, 2005.

iShares Index Fund	Deferred Net Realized Capital/Net Foreign Currency Losses
S&P 100	$	23,666
S&P Global 100		9,028
S&P Global Energy Sector		93,487
S&P Global Financials Sector		42,294
S&P Global Healthcare Sector		163,396
S&P Global Technology Sector		80,888
S&P Global Telecommunications Sector		14,159
S&P Europe 350		1,452,762
S&P Latin America 40		122,503
S&P/TOPIX 150		36,486
Nasdaq Biotechnology		35,035,523

The Funds had tax basis net capital loss carryforwards at March 31, 2004, the tax year-end of the Funds, as follows:

iShares Index Fund	Expiring 2009		Expiring 2010		Expiring 2011		Expiring 2012		Total
S&P 100	$	—	$	2,240,710	$	3,096,882	$	741,460	$	6,079,052
S&P Global 100		—		329,587		1,022,865		1,200,075		2,552,527
S&P Global Energy Sector		—		—		37,853		113,031		150,884
S&P Global Financials Sector		—		—		148,034		105,686		253,720
S&P Global Healthcare Sector		—		—		147,652		235,701		383,353
S&P Global Technology Sector		—		—		114,472		244,568		359,040
S&P Global Telecommunications Sector		—		—		505,504		231,569		737,073
S&P Europe 350		3,295		904,300		2,116,359		8,843,656		11,867,610
S&P Latin America 40		—		—		29,834		187,237		217,071
S&P/TOPIX 150		—		—		276,198		17,138		293,336
Nasdaq Biotechnology		—		2,280,865		29,163,198		11,433,188		42,877,251

94 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to the Financial Statements (Continued)

iSHARES^® TRUST

Net capital loss carryforwards may be applied against any net realized taxable gains in each succeeding year, or until their respective expiration date, whichever occurs first.

For the year ended March 31, 2004, certain Funds realized net capital gains or losses resulting from in-kind redemptions of large blocks of 50,000 or more shares or multiples thereof (“Creation Units”). Because such gains or losses are not taxable to the Funds, and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gains or losses to paid-in-capital at the end of the Funds’ tax year. These reclassifications have no effect on net assets or net asset values per share. The in-kind gains or losses for the year ended March 31, 2004 are disclosed in the Funds’ Statements of Operations.

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 an investment by the Fund, collateralized by securities, which are delivered to the Funds’ custodian or to an agent bank under a tri-party agreement. 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 Funds did not enter into any repurchase agreements at March 31, 2004; however, cash collateral for securities on loan was invested in repurchase agreements at March 31, 2004. For further information, see Note 5, below.

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 the Investment Advisory 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 execution 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 advisory services to each Fund, BGFA is entitled to an annual advisory fee based on the average daily net assets of each Fund as follows:

iShares Index Fund	Advisory Fee
S&P 100	0.20	%
S&P Global 100	0.40
S&P Global Energy Sector	0.65
S&P Global Financials Sector	0.65
S&P Global Healthcare Sector	0.65
S&P Global Technology Sector	0.65
S&P Global Telecommunications Sector	0.65	%
S&P Europe 350	0.60
S&P Latin America 40	0.50
S&P/TOPIX 150	0.50
Nasdaq Biotechnology	0.50

Investors Bank & Trust Company (“Investors Bank”) serves as administrator, custodian and transfer agent for the Trust. As compensation for its services, Investors Bank 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.

NOTES TO THE FINANCIAL STATEMENTS 95

Notes to the Financial Statements (Continued)

iSHARES^® TRUST

Barclays Global Investors, N.A. (“BGI”) serves as securities lending agent for the Trust. BGI is an affiliate of BGFA, the Funds’ investment advisor. As securities lending agent, BGI receives as fees, a share of the income earned on investment of the cash collateral received for the loan of securities. For the year ended March 31, 2004, BGI earned securities lending agent fees as follows:

iShares Index Fund	Securities Lending Agent Fees
S&P 100	$	19,969
S&P Global 100		16,668
S&P Global Energy Sector		8,718
S&P Global Financials Sector		4,879
S&P Global Healthcare Sector		4,451
S&P Global Technology Sector		1,458
S&P Global Telecommunications Sector		3,258
S&P Europe 350		410,676
S&P/TOPIX 150		2,614
Nasdaq Biotechnology		427,402

SEI Investments Distribution Company (“SEI”) serves as each Fund’s underwriter and distributor of the shares of each Fund, pursuant to a Distribution Agreement with the Trust. SEI does not receive a fee from the Funds for its distribution services.

Barclays Global Investors Services (“BGIS”), a subsidiary of BGI, may serve as a broker-dealer for the Funds. For the year ended March 31, 2004, BGIS did not receive any brokerage commissions from the Funds.

Pursuant to Rule 17a-7 of the 1940 Act, certain Funds executed cross trades for the year ended March 31, 2004. Cross trading is the buying or selling of portfolio securities between funds to which BGFA (or an affiliate) serves as investment advisor. The Board reviewed all such transactions executed during the first three quarters of the fiscal year and concluded that they were in compliance with the requirements and restrictions set forth by Rule 17a-7. The Board is scheduled at its next meeting to review all such transactions executed during the fourth quarter of the fiscal year.

Pursuant to an exemptive order issued by the U.S. Securities and Exchange Commission, each Fund may invest in the Institutional Shares of the Institutional Money Market Fund (“IMMF”) and Prime Money Market Fund (“PMMF”) of Barclays Global Investors Funds. The IMMF and PMMF are feeder funds in a master/feeder fund structure that invest substantially all of their assets in the Money Market Master Portfolio and Prime Money Market Master Portfolio (collectively, the “Master Portfolios”), respectively, which are managed by BGFA, the Funds’ investment advisor. The IMMF and PMMF are open-end money market funds available only to institutional investors, including other investment companies managed by BGFA. The IMMF and PMMF seek a high level of income consistent with liquidity and the preservation of capital. While the IMMF and PMMF do not directly charge an advisory fee, the Master Portfolios in which they invest do charge an advisory fee. Income distributions from the IMMF and PMMF are declared daily and paid monthly from net investment income. Income distributions earned by the Funds from temporary cash investments or from investment of securities lending collateral are recorded as either interest income or securities lending income, respectively, in the accompanying Statements of Operations.

As a result of using an index approach to investing, the iShares S&P Global 100, iShares S&P Global Financials Sector and iShares S&P Europe 350 Index Funds held shares of Barclays PLC. Barclays PLC is an affiliate of BGFA, the Funds’ investment advisor.

96 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to the Financial Statements (Continued)

iSHARES^® TRUST

Transactions in shares of issuers affiliated with BGFA for the year ended March 31, 2004, including dividends, interest income, and net realized capital gains (losses) were as follows:

Name of Issuer	Number of Shares Held Beginning of Year (in 000s)	Gross Additions (in 000s)	Gross Reductions (in 000s)	Number of Shares Held End of Year (in 000s)	Value at End of Year		Dividend and Interest Income		Net Realized Gain (Loss)
iShares S&P 100 Index Fund
IMMF	151	69,613	67,997	1,767	$	1,766,673	$	2,930	$	—
iShares S&P Global 100 Index Fund
Barclays PLC	89	79	2	166		1,459,741		55,937		(264	)
IMMF	72	38,314	38,223	163		163,042		1,612		—
iShares S&P Global Energy Sector Index Fund
IMMF	59	12,913	12,889	83		83,192		661		—
iShares S&P Global Financials Sector Index Fund
Barclays PLC	37	18	11	44		387,019		17,025		24,884
IMMF	37	5,952	5,949	40		39,622		271		—
iShares S&P Global Healthcare Sector Index Fund
IMMF	37	12,680	12,617	100		100,325		600		—
iShares S&P Global Technology Sector Index Fund
IMMF	17	2,417	2,404	30		30,204		113		—
iShares S&P Global Telecommunications Sector
Index Fund
IMMF	13	3,646	3,643	16		15,533		158		—
iShares S&P Europe 350 Index Fund
Barclays PLC	719	271	22	968		8,527,488		333,147		(8,792	)
IMMF	372	64,147	64,497	22		21,639		2,787		—
iShares S&P Latin America 40 Index Fund
IMMF	20	19,036	19,056	—		—		847		—
iShares S&P/TOPIX 150 Index Fund
IMMF	3	2,947	2,931	19		19,400		134		—
iShares Nasdaq Biotechnology Index Fund
IMMF	18	23,809	23,734	93		93,349		1,020		—

Due to the nature of the structure of the joint account used for the investment of the collateral for securities lending, the transactions reported for the IMMF do not include activity related to the Funds’ holdings of this issuer for securities lending purposes. In addition to the transactions disclosed above, the Funds also invested in the PMMF for purposes of investing collateral from securities lending.

As of March 31, 2004, certain trustees and officers of the Trust are also officers of BGI.

NOTES TO THE FINANCIAL STATEMENTS 97

Notes to the Financial Statements (Continued)

iSHARES^® TRUST

3. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the year ended March 31, 2004 were as follows:

iShares Index Fund	Purchases		Sales
S&P 100	$	19,037,865	$	19,196,921
S&P Global 100		4,163,309		3,741,262
S&P Global Energy Sector		2,024,795		1,570,092
S&P Global Financials Sector		1,751,333		1,701,420
S&P Global Healthcare Sector		3,416,342		3,061,573
S&P Global Technology Sector		739,264		761,072
S&P Global Telecommunications Sector		1,214,135		1,085,723
S&P Europe 350		29,584,145		28,058,035
S&P Latin America 40		5,722,960		5,411,385
S&P/TOPIX 150		1,040,902		972,680
Nasdaq Biotechnology		256,314,967		259,918,987

In-kind transactions (see Note 4) for the year ended March 31, 2004 were as follows:

iShares Index Fund	In-kind Purchases		In-kind Sales
S&P 100	$	451,080,395	$	446,590,830
S&P Global 100		77,563,998		—
S&P Global Energy Sector		61,947,898		—
S&P Global Financials Sector		11,899,174		5,531,246
S&P Global Healthcare Sector		102,396,688		—
S&P Global Technology Sector		17,250,457		—
S&P Global Telecommunications Sector		6,768,836		—
S&P Europe 350		202,523,231		—
S&P Latin America 40		60,332,146		3,025,209
S&P/TOPIX 150		34,925,654		—
Nasdaq Biotechnology		968,487,294		737,317,876

98 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to the Financial Statements (Continued)

iSHARES^® TRUST

At March 31, 2004, the aggregate unrealized appreciation and depreciation based on cost for federal income tax purposes were as follows:

iShares Index Fund	Tax Cost		Unrealized Appreciation		Unrealized Depreciation			Net Unrealized Appreciation (Depreciation)
S&P 100	$	456,167,877	$	1,020,568	$	(37,862,054	)	$	(36,841,486	)
S&P Global 100		186,128,911		8,146,857		(8,013,248	)		133,609
S&P Global Energy Sector		89,491,961		8,745,524		(351,762	)		8,393,762
S&P Global Financials Sector		30,552,381		3,968,732		(330,853	)		3,637,879
S&P Global Healthcare Sector		145,073,862		4,716,489		(6,159,464	)		(1,442,975	)
S&P Global Technology Sector		31,404,032		2,204,688		(1,496,989	)		707,699
S&P Global Telecommunications Sector		24,660,078		1,497,632		(2,056,792	)		(559,160	)
S&P Europe 350		959,832,687		64,824,749		(41,019,035	)		23,805,714
S&P Latin America 40		69,148,995		14,721,938		(393,805	)		14,328,133
S&P/TOPIX 150		48,854,028		10,038,617		(118,764	)		9,919,853
Nasdaq Biotechnology		1,283,190,773		73,117,148		(51,905,951	)		21,211,197

4. CAPITAL SHARE TRANSACTIONS

At March 31, 2004, there were an unlimited number of no par value capital shares of beneficial interest authorized. Capital shares are issued and redeemed by each Fund only in Creation Units or multiples thereof. Except when aggregated in Creation Units, shares of each Fund are not redeemable. Transactions in capital shares for each Fund are disclosed in detail in the Statements of Changes in Net Assets.

The consideration for the 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.

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, which consists of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. Government. The initial collateral received is required to have a value of at least 102% of the market value of the loaned securities for securities denominated in U.S. dollars and a value of at least 105% for all other securities. The collateral is maintained thereafter, at a value equal to at least 100% of the current market value of the securities on loan. The risks to a Fund of securities lending are that the borrower may not provide additional collateral when required, or return the securities when due.

As of March 31, 2004, certain of the Funds had loaned securities which were collateralized by cash. The cash collateral received was invested in a joint account with other funds managed by BGFA, which invests in securities with remaining maturities of 397 days or less, repurchase agreements and money market mutual funds including money market funds managed by BGFA. Repurchase agreements held in the joint account are fully collateralized by U.S. Government securities. Income from the joint account is allocated daily to each Fund, based on each Fund’s portion of the total cash collateral received. The market value of the securities on loan at March 31, 2004 and the value of the related collateral are disclosed in the Statements of Assets and Liabilities. Securities lending income is presented net of broker rebates and fees paid to BGI.

NOTES TO THE FINANCIAL STATEMENTs 99

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Trustees of

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 and the iShares Nasdaq Series (the “Funds”), as listed on the table of contents, at March 31, 2004, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the periods presented, 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 the standards of the Public Company Accounting Oversight Board (United States), 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, 2004 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California

May 21, 2004

100 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Tax Information (Unaudited)

iSHARES^® TRUST

For the year ended March 31, 2004, certain of the Funds earned foreign source income and paid foreign taxes which they intend to pass through to their shareholders pursuant to Section 853 of the Internal Revenue Code as follows:

iShares Index Fund	Foreign Source Income Earned		Foreign Taxes Paid
S&P Global Telecommunications Sector	$	176,621	$	11,384
S&P Europe 350		16,326,313		592,245
S&P Latin America 40		1,384,344		115,892
S&P/TOPIX 150		385,598		28,617

For corporate shareholders, a portion of the income dividends paid by certain of the Funds during the year ended March 31, 2004 qualified for the dividends-received deduction:

iShares Index Fund	Dividends- Received Deduction
S&P 100	100.00	%
S&P Global 100	61.87
S&P Global Energy Sector	52.09
S&P Global Financials Sector	52.24
S&P Global Healthcare Sector	89.03
S&P Global Telecommunications Sector	72.84

Qualified dividend income received by the Funds through March 31, 2004 that qualified for a reduced tax rate pursuant to the Jobs and Growth Tax Relief Reconciliation Act of 2003 are as follows:

iShares Index Fund	Qualified Dividend Income
S&P 100	$	6,173,284
S&P Global 100		1,755,371
S&P Global Energy Sector		932,820
S&P Global Financials Sector		487,817
S&P Global Healthcare Sector		871,893
S&P Global Technology Sector		59,309
S&P Global Telecommunications Sector		313,598
S&P Europe 350		8,628,005
S&P Latin America 40		1,270,975
S&P/TOPIX 150		363,167
Nasdaq Biotechnology		41,878

TAX INFORMATION 101

Supplemental Information (Unaudited)

iSHARES^® TRUST

The tables that follow present information about the differences between the daily market price on secondary markets for shares of an 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. The “Market Price” of each iShares Fund generally is determined using the midpoint between the highest bid and the lowest offer on the stock exchange on which the shares of such Fund is listed for trading, as of the time that the Fund’s NAV is calculated. Each Fund’s Market Price may be at, above or below its NAV. The NAV of each Fund will fluctuate with changes in the market value of its portfolio holdings. The Market 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 (expressed as a percentage) between the NAV and Market Price of a Fund on a given day, generally at the time NAV is calculated. 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.

The following information shows the frequency distributions of premiums and discounts for each of the iShares Funds included in this report. The information shown for each Fund is for each full calendar quarter completed after the inception date of such Fund through March 31, 2004, the date of the most recent calendar quarter end. The specific periods covered for each Fund are disclosed in the table for such Fund.

Each line in the table shows the number of trading days in which the iShares Fund traded within the premium/discount range indicated. The number of trading days in each premium/discount range is also shown as a percentage of the total number of trading days in the period covered by each table. All data presented here represents past performance, which cannot be used to predict future results.

iShares S&P 100 Index Fund

Period Covered: January 1, 2001 through March 31, 2004

Premium/Discount Range	Number of Days	Percentage of Total Days
Greater than 1.0%	2	0.25	%
Greater than 0.5% and Less than 1.0%	16	1.96
Between 0.5% and – 0.5%	772	94.72
Less than – 0.5% and Greater than – 1.0%	20	2.46
Less than – 1.0%	5	0.61
	815	100.00	%

102 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^® TRUST

iShares S&P Global 100 Index Fund

Period Covered: January 1, 2001 through March 31, 2004

Premium/Discount Range	Number of Days	Percentage of Total Days
Greater than 1.5%	4	0.49	%
Greater than 1.0% and Less than 1.5%	14	1.72
Greater than 0.5% and Less than 1.0%	109	13.37
Between 0.5% and – 0.5%	635	77.91
Less than – 0.5% and Greater than – 1.0%	26	3.19
Less than – 1.0% and Greater than – 1.5%	10	1.23
Less than – 1.5% and Greater than – 2.0%	3	0.37
Less than – 2.0% and Greater than – 2.5%	1	0.12
Less than – 2.5% and Greater than – 3.0%	1	0.12
Less than – 3.0% and Greater than – 3.5%	2	0.25
Less than – 3.5% and Greater than – 4.0%	3	0.37
Less than – 4.0%	7	0.86
	815	100.00	%

iShares S&P Global Energy Sector Index Fund

Period Covered: January 1, 2002 through March 31, 2004

Premium/Discount Range	Number of Days	Percentage of Total Days
Greater than 2.0%	2	0.36	%
Greater than 1.5% and Less than 2.0%	6	1.07
Greater than 1.0% and Less than 1.5%	37	6.58
Greater than 0.5% and Less than 1.0%	112	19.93
Between 0.5% and – 0.5%	378	67.25
Less than 0.5% and Greater than – 1.0%	25	4.45
Less than – 1.0%	2	0.36
	562	100.00	%

iShares S&P Global Financials Sector Index Fund

Period Covered: January 1, 2002 through March 31, 2004

Premium/Discount Range	Number of Days	Percentage of Total Days
Greater than 1.5%	4	0.71	%
Greater than 1.0% and Less than 1.5%	32	5.69
Greater than 0.5% and Less than 1.0%	97	17.26
Between 0.5% and – 0.5%	403	71.72
Less than – 0.5% and Greater than – 1.0%	22	3.91
Less than – 1.0%	4	0.71
	562	100.00	%

SUPPLEMENTAL INFORMATION 103

Supplemental Information (Unaudited) (Continued)

iSHARES^® TRUST

iShares S&P Global Healthcare Sector Index Fund

Period Covered: January 1, 2002 through March 31, 2004

Premium/Discount Range	Number of Days	Percentage of Total Days
Greater than 1.5%	6	1.07	%
Greater than 1.0% and Less than 1.5%	37	6.58
Greater than 0.5% and Less than 1.0%	98	17.44
Between 0.5% and – 0.5%	413	73.48
Less than – 0.5% and Greater than – 1.0%	6	1.07
Less than – 1.0%	2	0.36
	562	100.00	%

iShares S&P Global Technology Sector Index Fund

Period Covered: January 1, 2002 through March 31, 2004

Premium/Discount Range	Number of Days	Percentage of Total Days
Greater than 1.5% and Less than 2.0%	11	1.96	%
Greater than 1.0% and Less than 1.5%	43	7.65
Greater than 0.5% and Less than 1.0%	129	22.95
Between 0.5% and – 0.5%	334	59.43
Less than – 0.5% and Greater than – 1.0%	36	6.41
Less than – 1.0% and Greater than – 1.5%	9	1.60
	562	100.00	%

iShares S&P Global Telecommunications Sector Index Fund

Period Covered: January 1, 2002 through March 31, 2004

Premium/Discount Range	Number of Days	Percentage of Total Days
Greater than 2.0%	4	0.71	%
Greater than 1.5% and Less than 2.0%	19	3.38
Greater than 1.0% and Less than 1.5%	52	9.25
Greater than 0.5% and Less than 1.0%	128	22.78
Between 0.5% and – 0.5%	309	54.98
Less than – 0.5% and Greater than – 1.0%	37	6.59
Less than – 1.0% and Greater than – 1.5%	10	1.78
Less than – 1.5%	3	0.53
	562	100.00	%

104 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^® TRUST

iShares S&P Europe 350 Index Fund

Period Covered: October 1, 2000 through March 31, 2004

Premium/Discount Range	Number of Days	Percentage of Total Days
Greater than 4.0%	3	0.34	%
Greater than 3.5% and Less than 4.0%	7	0.80
Greater than 3.0% and Less than 3.5%	18	2.06
Greater than 2.5% and Less than 3.0%	18	2.06
Greater than 2.0% and Less than 2.5%	31	3.55
Greater than 1.5% and Less than 2.0%	44	5.03
Greater than 1.0% and Less than 1.5%	94	10.76
Greater than 0.5% and Less than 1.0%	233	26.66
Between 0.5% and – 0.5%	353	40.39
Less than – 0.5% and Greater than – 1.0%	43	4.92
Less than – 1.0% and Greater than – 1.5%	19	2.17
Less than – 1.5% and Greater than – 2.0%	5	0.57
Less than – 2.0%	6	0.69
	874	100.00	%

iShares S&P Latin America 40 Index Fund

Period Covered: January 1, 2002 through March 31, 2004

Premium/Discount Range	Number of Days	Percentage of Total Days
Greater than 2.0%	4	0.71	%
Greater than 1.5% and Less than 2.0%	19	3.38
Greater than 1.0% and Less than 1.5%	106	18.86
Greater than 0.5% and Less than 1.0%	113	20.11
Between 0.5% and – 0.5%	262	46.62
Less than – 0.5% and Greater than – 1.0%	43	7.65
Less than – 1.0% and Greater than – 1.5%	13	2.31
Less than – 1.5%	2	0.36
	562	100.00	%

SUPPLEMENTAL INFORMATION 105

Supplemental Information (Unaudited) (Continued)

iSHARES^® TRUST

iShares S&P/TOPIX 150 Index Fund

Period Covered: January 1, 2002 through March 31, 2004

Premium/Discount Range	Number of Days	Percentage of Total Days
Greater than 2.5%	4	0.71	%
Greater than 2.0% and Less than 2.5%	10	1.78
Greater than 1.5% and Less than 2.0%	21	3.74
Greater than 1.0% and Less than 1.5%	53	9.43
Greater than 0.5% and Less than 1.0%	90	16.00
Between 0.5% and – 0.5%	252	44.85
Less than – 0.5% and Greater than – 1.0%	78	13.88
Less than – 1.0% and Greater than – 1.5%	39	6.94
Less than – 1.5% and Greater than – 2.0%	12	2.14
Less than – 2.0%	3	0.53
	562	100.00	%

iShares Nasdaq Biotechnology Index Fund

Period Covered: April 1, 2001 through March 31, 2004

Premium/Discount Range	Number of Days	Percentage of Total Days
Greater than 1.0%	4	0.53	%
Greater than 0.5% and Less than 1.0%	37	4.94
Between 0.5% and – 0.5%	675	90.13
Less than – 0.5% and Greater than – 1.0%	24	3.20
Less than – 1.0% and Greater than – 1.5%	2	0.27
Less than – 1.5% and Greater than – 2.0%	6	0.80
Less than – 2.0%	1	0.13
	749	100.00	%

106 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Trustee Information (Unaudited)

iSHARES^® TRUST

The Board of Trustees has responsibility for the overall management and operations of the Trust, including general supervision of the duties performed by BGFA and other service providers. Each Trustee serves until his or her successor is duly elected or appointed and qualified.

iShares Trust, iShares, Inc., Barclays Global Investors Funds and Master Investment Portfolio are considered to be members of the same fund complex, as defined in Form N-1A under the 1940 Act. Each Trustee of iShares Trust also serves as a Director for iShares, Inc. and oversees 87 portfolios within the fund complex. In addition, Lee T. Kranefuss and Richard K. Lyons each serves as a Trustee for Barclays Global Investors Funds and Master Investment Portfolio and oversees 114 portfolios within the fund complex.

Unless otherwise noted in the tables below, the address for each Trustee is 45 Fremont Street, San Francisco, California 94105. Additional information about the Funds’ Trustees may be found in the Funds’ Statement of Additional Information, which is available without charge upon request by calling toll-free 1-800-474-2737.

Interested Trustees

Name and Age	Position(s), Length of Service	Principal Occupation(s) During Past 5 Years	Other Directorships Held
*Lee T. Kranefuss (42)	Trustee, Chairman, and President (since June 18, 2003)	Chief Executive Officer of Intermediary Investor and Exchange Traded Products Business of BGI (since 2003) Chief Executive Officer of the individual Investor Business of BGI (1997-2003).	Director (since June 18, 2003) of iShares, Inc.; Board of Trustees for Barclays Global Investors Funds and Master Investment Portfolio (since 2001).
*Nathan Most (90)	Trustee (since December 16, 1999)	Consultant to BGI (1998-2002), American Stock Exchange (1996-2000) and the Hong Kong Stock Exchange (1998 to present); Consultant to the Amsterdam Stock Exchange (1997-1998); Consultant to the Pacific Stock Exchange (1997-1998).	Director (since 1996) and President (1996-2002) of iShares, Inc.
*John E. Martinez (42)	Trustee (since December 5, 2003)	Co-CEO of Global Index and Markets Group of BGI (2001-2003); Chairman of Barclays Global Investors Services (2000-2003); CEO of Capital Markets Group of BGI (1996-2001).	Director (since December 5, 2003) of iShares, Inc.; Director (since November 2003) of Barclays Global Investors UK Holdings.

* Lee T. Kranefuss, Nathan Most and John E. Martinez are deemed to be “interested persons” (as defined in the 1940 Act) of the Trust due to their affiliations with BGFA, the Funds’ investment advisor and BGI, the parent company of BGFA.

TRUSTEE INFORMATION 107

Trustee Information (Unaudited) (Continued)

iSHARES^® TRUST

Independent Trustees

Name and Age	Position(s), Length of Service	Principal Occupation(s) During Past 5 Years	Other Directorships Held
John B. Carroll (68)	Trustee (since January 1, 2002)	Retired Vice President of Investment Management (1984-2000) of Verizon Corporation; Advisory Board member of Ibbotson Associates (1992-1998); former Vice Chairman and Executive Committee Member (1994-1998) of the Committee on Investment of Employee Benefit Assets of the Financial Executive Institute.	Director (since 1996) of iShares, Inc.; Trustee and member of the Executive Committee (since 1991) of The Common Fund Institutional Funds, a non-profit organization; Member of the Board of Managers of JP Morgan Private Equity Funds.
Richard K. Lyons (43)	Trustee (since February 15, 2000)	Professor, University of California, Berkeley: Haas School of Business (since 1993); Consultant for IMF World Bank, Federal Reserve Bank, and Citibank N.A. (since 2000).	Director (since 2001) of iShares, Inc.; Trustee of Master Investment Portfolio and Barclays Global Investors Funds (since 2001); Board of Trustees: Trustee (Chairman) Matthews Asian Funds since 1995 (oversees 6 portfolios).
George C. Parker (65)	Trustee (since February 15, 2000)	Dean Witter Distinguished Professor of Finance (since 1994); Associate Dean for Academic Affairs, Director of MBA Program, and Professor, Stanford University: Graduate School of Business (1993-2001).	Director (since 2001) of iShares, Inc.; Bailard, Biehl and Kaiser, Inc. (since 1985); California Casualty Group of Insurance Companies (since 1978); Continental Airlines, Inc. (since 1996); Community First Financial Group (since 1995); Dresdner/RCM Mutual Funds (1994-2002); Tyon Ranch Company (since 1999).
W. Allen Reed (56)	Trustee (since January 1, 2002)	President and Chief Executive Officer (since 1994) of General Motors Investment Management Corporation.	Director (since 1996) of iShares, Inc.; Director (since 1994) of General Motors Investment Management Corporation; Director (1995-1998) of Taubman Centers, Inc. (a real estate investment trust); Director (since 1992) of FLIR Systems (an imaging technology company); Director (since 1994) of General Motors Acceptance Corporation; Director (since 1994) of GMAC Insurance Holdings, Inc.; Director (since 1995) of Global Emerging Markets Fund; Director (since 2000) of Temple Inland Industries; Chairman (since 1995) of the Investment Advisory Committee of Howard Hughs Medical Institute.

108 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Trustee Information (Unaudited) (Continued)

iSHARES^® TRUST

Officer

Name and Age	Position(s), Length of Service	Principal Occupation(s) During Past 5 Years	Other Directorships Held
Michael A. Latham (38)	Secretary, Treasurer and Principal Financial Officer (since February 28, 2002)	Chief Operating Officer of the Intermediary Investor and Exchange Traded Products Business of BGI (since 2003), Director of Mutual Fund Delivery in the U.S. Individual Investor Business of BGI (2000-2003); Head of Operations, BGI Europe (1997-2000).	None.

TRUSTEE INFORMATION 109

The iShares^® Family of Funds

The following is a list of iShares Funds being offered, along with their respective exchange trading symbols. Please call iShares at 1-800-iShares (1-800-474-2737) to obtain a prospectus for any iShares fund. The prospectus contains more complete information, including charges, expenses, investment objectives and risk factors which should be carefully considered to determine if the fund(s) are an appropriate investment for you. Read the prospectus(es) carefully before investing. Investing involves risk, including possible loss of principal.

iShares S&P Domestic Index Funds S&P 1500 (ISI) S&P 500 (IVV) S&P 500/BARRA Growth (IVW) S&P 500/BARRA Value (IVE) S&P MidCap 400 (IJH) S&P MidCap 400/BARRA Growth (IJK) S&P MidCap 400/BARRA Value (IJJ) S&P SmallCap 600 (IJR) S&P SmallCap 600/BARRA Growth (IJT) S&P SmallCap 600/BARRA Value (IJS) S&P 100 (OEF) iShares Sector and Specialty Index Funds Cohen & Steers Realty Majors (ICF) Dow Jones U.S. Basic Materials Sector (IYM) Dow Jones U.S. Consumer Cyclical Sector (IYC) Dow Jones U.S. Consumer Non-Cyclical Sector (IYK) Dow Jones U.S. Energy Sector (IYE) Dow Jones U.S. Financial Sector (IYF) Dow Jones U.S. Financial Services (IYG) Dow Jones U.S. Healthcare Sector (IYH) Dow Jones U.S. Industrial Sector (IYJ) Dow Jones U.S. Real Estate (IYR) Dow Jones Select Dividend (DVY) Dow Jones U.S. Technology Sector (IYW) Dow Jones U.S. Telecommunications Sector (IYZ) Dow Jones U.S. Total Market (IYY) Dow Jones Transportation Average (IYT) Dow Jones U.S. Utilities Sector (IDU) Goldman Sachs Natural Resources (IGE) Goldman Sachs Networking (IGN) Goldman Sachs Semiconductor (IGW) Goldman Sachs Software (IGV) Goldman Sachs Technology (IGM) Nasdaq Biotechnology (IBB) S&P Global Energy Sector (IXC) S&P Global Financials Sector (IXG) S&P Global Healthcare Sector (IXJ) S&P Global Technology Sector (IXN) S&P Global Telecommunications Sector (IXP) iShares Bond Funds Lehman Aggregate (AGG) Lehman TIPS (TIP) Lehman 1-3 Year Treasury (SHY) Lehman 7-10 Year Treasury (IEF) Lehman 20⁺ Year Treasury (TLT) GS $InvesTop^™ Corporate (LQD) iShares Russell Index Funds Russell 3000 (IWV) Russell 3000 Growth (IWZ) Russell 3000 Value (IWW) Russell 1000 (IWB) Russell 1000 Growth (IWF) Russell 1000 Value (IWD) Russell Midcap (IWR) Russell Midcap Growth (IWP) Russell Midcap Value (IWS) Russell 2000 (IWM) Russell 2000 Growth (IWO) Russell 2000 Value (IWN) iShares NYSE Index Funds NYSE 100 (NY) NYSE Composite (NYC) iShares International Index Funds MSCI Australia (EWA) MSCI Austria (EWO) MSCI Belgium (EWK) MSCI Brazil (EWZ) MSCI Canada (EWC) MSCI EAFE (EFA) MSCI Emerging Markets (EEM) MSCI EMU (EZU) MSCI France (EWQ) MSCI Germany (EWG) MSCI Hong Kong (EWH) MSCI Italy (EWI) MSCI Japan (EWJ) MSCI Malaysia (EWM) MSCI Mexico (EWW) MSCI Netherlands (EWN) MSCI Pacific ex-Japan (EPP) MSCI Singapore (EWS) MSCI South Africa (EZA) MSCI South Korea (EWY) MSCI Spain (EWP) MSCI Sweden (EWD) MSCI Switzerland (EWL) MSCI Taiwan (EWT) MSCI United Kingdom (EWU) S&P Europe 350 (IEV) S&P Global 100 (IOO) S&P Latin America 40 (ILF) S&P/TOPIX 150 (ITF)

An investment in the fund(s) is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.

iShares is a registered trademark of Barclays Global Investors, N.A. The iShares Funds are not sponsored, endorsed or issued by Goldman, Sachs & Co. or Lehman Brothers, nor are they sponsored, endorsed, issued, sold or promoted by Cohen & Steers Capital Management, Inc., Dow Jones & Company, Inc., Morgan Stanley Capital International, The Nasdaq Stock Market, Inc., New York Stock Exchange, Inc., Frank Russell Company, or Standard & Poor’s. None of these companies make any representation regarding the advisability of investing in the iShares Funds. Neither SEI nor BGI, nor any of their affiliates, are affiliated with Goldman, Sachs & Co. or Lehman Brothers. “GS $InvesTop^™” and “Goldman Sachs^®” are trademarks of Goldman, Sachs & Co.

This advertising section does not constitute part of the 2004 Annual Report.

110 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

The iShares Funds are distributed by SEI Investments Distribution Co. (SEI). Barclays Global Fund Advisors (BGFA) serves as an advisor to the iShares Funds. Barclays Global Investors Services (BGIS) assists in the marketing of the iShares Funds. BGFA and BGIS are subsidiaries of Barclays Global Investors, N.A., a wholly owned subsidiary of Barclays Bank PLC, none of which is affiliated with SEI.

The iShares Funds are not sponsored, endorsed, issued, sold or promoted by Standard and Poor’s or The Nasdaq Stock Market, Inc., nor do these companies make any representation regarding the advisability of investing in the iShares Funds.

Investing involves risk, including possible loss of principal.

©2004 Barclays Global Investors. All rights reserved. iShares is a registered trademark of Barclays Global Investors, N.A. All other trademarks, servicemarks or registered trademarks are the property of their respective owners.

A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling toll-free 1 800 474 2737; on the Funds’ website at www.iShares.com; and on the Securities and Exchange Commision’s website at www.sec.gov.

This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current prospectus.

iShares^® Industrial strength investment tools from BARCLAYS GLOBAL INVESTORS

1 800 iSHARES (1 800 474 2737) WWW.iSHARES.COM

[GRAPHIC APPEARS HERE]

iShares^®

ITEM 1.    Report to Stockholders

2004 ANNUAL REPORT TO SHAREHOLDERS

MARCH 31, 2004

iSHARES S&P 500 INDEX FUND

iSHARES S&P 500/BARRA GROWTH INDEX FUND

iSHARES S&P 500/BARRA VALUE INDEX FUND

iSHARES S&P MIDCAP 400 INDEX FUND

iSHARES S&P MIDCAP 400/BARRA GROWTH INDEX FUND

iSHARES S&P MIDCAP 400/BARRA VALUE INDEX FUND

iSHARES S&P SMALLCAP 600 INDEX FUND

iSHARES S&P SMALLCAP 600/BARRA GROWTH INDEX FUND

iSHARES S&P SMALLCAP 600/BARRA VALUE INDEX FUND

iSHARES S&P 1500 INDEX FUND

Table of Contents

Shareholder Letter	1
Managers’ Discussion & Analysis	4
Schedules of Investments	12
iShares S&P 500 Index Fund	12
iShares S&P 500/BARRA Growth Index Fund	21
iShares S&P 500/BARRA Value Index Fund	26
iShares S&P MidCap 400 Index Fund	33
iShares S&P MidCap 400/BARRA Growth Index Fund	41
iShares S&P MidCap 400/BARRA Value Index Fund	46
iShares S&P SmallCap 600 Index Fund	52
iShares S&P SmallCap 600/BARRA Growth Index Fund	63
iShares S&P SmallCap 600/BARRA Value Index Fund	69
iShares S&P 1500 Index Fund	77
Financial Statements	99
Financial Highlights	107
Notes to the Financial Statements	117
Report of Independent Registered Public Accounting Firm	125
Tax Information (Unaudited)	126
Supplemental Information (Unaudited)	127
Trustee Information (Unaudited)	130
iShares Family of Funds	134

To Our Shareholders:

Stock markets generally posted solid gains during the last twelve months, reversing the trend of the past several years. The uncertainty that characterized the first few months of the fiscal year, including war in Iraq and high unemployment levels, diminished as the year progressed. Healthy gross domestic product (GDP) growth in the third and fourth quarters of 2003 contributed to the performance trend, and lower unemployment rates in early 2004 provided additional encouragement. While the performance of the past year has been a welcome relief, there is no guarantee that more challenging conditions will not return.

The iShares^® Funds continue to innovate and expand, offering more tools that help investors tailor their portfolios to achieve diversity and address volatility. For example, the iShares family of funds recently partnered with the New York Stock Exchange (the “NYSE”) and introduced two new funds based on NYSE indexes. The iShares NYSE Composite Index Fund provides broad-based exposure to common stocks, ADRs, real estate investment trusts and tracking stocks listed on the NYSE. The iShares NYSE 100 Index Fund offers exposure to the largest 100 U.S. companies, based on market capitalization, listed on the NYSE. Launched late in 2003, the iShares Dow Jones Select Dividend Index Fund provides investors with exposure to fifty of the highest dividend-yielding securities in the Dow Jones U.S. Total Market Index. The iShares family of funds has also added the iShares Lehman TIPS Bond Fund, which provides the opportunity to gain exposure to inflation-protected government securities.

With the addition of these iShares Funds, investors can achieve even more diversity in their portfolios – and at lower cost, since iShares Fund fees are, on average, about half those of actively managed funds.¹ With more than 85 different funds in the iShares family of funds to choose from, investors have the ability to build a diverse portfolio that covers a wide range of market segments with various capitalizations and sectors, as well as value and growth, international and fixed income securities. That is important because market segments do not tend to move in tandem, particularly in volatile markets. Economic factors, including inflation, interest rate levels, currency valuations or the price of oil, as well as the normal pace of the economic cycle, all may result in one market segment outperforming another.

As market conditions change, we encourage you to talk with your financial advisor about what blend of investments or asset allocation can best help you meet your financial goals. We will continue to work closely with the financial advisor community to introduce innovative strategies and structures for their clients’ portfolios. To learn more about the iShares Funds, please visit our web site, www.iShares.com.

Regardless of market conditions, a sound, disciplined investing plan is essential. Such a plan should be grounded in key concepts: such as keeping the costs associated with investing as low as possible, managing risk and maintaining a diversified portfolio. That is why we believe the iShares Funds are an indispensable tool for investors. And that is also why more and more investors have recognized the benefits of the iShares Funds. Assets under management for the iShares family of funds continue to grow, and, as of March 31, 2004, had reached $72.8 billion.

On behalf of the iShares family of funds, we thank you for making the iShares Funds a part of your portfolio. We look forward to meeting your investment needs in the year ahead.

/s/ Lee T. Kranefuss

Lee T. Kranefuss

President and Chairman of the Board of Trustees

iShares Trust

¹ Morningstar Principia, BGI analysis 3/04.

SHAREHOLDER LETTER 1

The iShares Funds are distributed by SEI Investments Distribution Co. (SEI). Barclays Global Fund Advisors (BGFA) serves as an advisor to the iShares Funds. Barclays Global Investors Services (BGIS) assists in the marketing of the iShares Funds. BGFA and BGIS are subsidiaries of Barclays Global Investors, N.A., none of which is affiliated with SEI.

To determine if the Fund(s) are an appropriate investment for you, carefully consider the Funds’ investment objectives, risk factors and charges and expenses before investing. This and other information can be found in the funds’ prospectuses, which may be obtained by calling 1-800-ishares or by visiting www.iShares.com. Read the prospectus carefully before investing.

There are risks involved with investing, including possible loss of principal. Diversification may not protect against market risk. An investment in the Funds is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The annual management fees of the iShares Funds may be substantially less than those of most mutual funds. iShares transactions will result in brokerage commissions, but the savings from lower annual fees may help offset these costs.

iShares is a registered trademark of Barclays Global Investors, N.A. The iShares Funds are not sponsored, endorsed, or issued by Lehman Brothers, nor are they sponsored, endorsed, issued, sold or promoted by Dow Jones & Company, Inc. or the New York Stock Exchange, Inc. None of these companies make any representation regarding the advisability of investing in the iShares Funds. Neither SEI nor BGI, nor any of their affiliates, are affiliated with the companies listed above.

This advertising section does not constitute part of the 2004 Annual Report.

2 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

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3

Managers’ Discussion & Analysis

iSHARES^® S&P 500 INDEX FUNDS

Performance as of 3/31/04

	AVERAGE ANNUAL TOTAL RETURNS												CUMULATIVE TOTAL RETURNS
	YEAR ENDED 3/31/04						INCEPTION TO 3/31/04						INCEPTION TO 3/31/04
iSHARES INDEX FUND	NAV		MARKET		INDEX		NAV		MARKET		INDEX		NAV		MARKET		INDEX
S&P 500	34.93	%	35.13	%	35.12	%	(4.99	)%	(5.00	)%	(4.92	)%	(18.02	)%	(18.04	)%	(17.77	)%
S&P 500/BARRA Growth	26.46	%	26.63	%	26.74	%	(8.86	)%	(8.86	)%	(8.70	)%	(30.09	)%	(30.12	)%	(29.62	)%
S&P 500/BARRA Value	43.80	%	43.97	%	44.14	%	0.25	%	0.24	%	0.43	%	0.98	%	0.94	%	1.66	%

Total returns for the periods since inception are calculated from the inception date of each Fund (5/15/00, 5/22/00 and 5/22/00, respectively). “Average annual total returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative total returns” represent the total change in value of an investment over the periods indicated.

A fund’s per share net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of each Fund, and the market return is based on the market price per share of each Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which the shares of the Funds are listed for trading, as of the time that the Funds’ NAV is calculated. Since fund shares typically do not trade in the secondary market until several days after fund inception, for the period from inception to the first day of secondary market trading in fund shares (5/19/00, 5/26/00 and 5/26/00, respectively), the NAV of the Funds is used as a proxy for secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Funds at Market Price and NAV, respectively.

An index is a statistical composite that tracks a specified financial market or sector. Unlike the Funds, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Funds. These expenses negatively impact the performance of each Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. The returns shown in the tables above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Funds may be worth more or less than their original cost when they are redeemed or sold in the market. Each Fund’s past performance is no guarantee of future results.

GROWTH OF $10,000 INVESTMENT

SINCE INCEPTION AT NET ASSET VALUE

[GRAPHIC APPEARS HERE]

	iSHARES S&P 500 INDEX FUND		iSHARES S&P 500/BARRA GROWTH INDEX FUND		iSHARES S&P 500/BARRA VALUE INDEX FUND		STANDARD & POOR’S 500 INDEX		STANDARD & POOR’S 500/BARRA GROWTH INDEX		STANDARD & POOR’S 500/BARRA VALUE INDEX
May-2000	$	10000.00	$	10000.00	$	10000.00	$	10000.00	$	10000.00	$	10000.00
Jun-2000	$	10028.18	$	11052.16	$	9659.34	$	10029.76	$	11054.48	$	9658.79
Jul-2000	$	9871.76	$	10556.59	$	9850.60	$	9873.30	$	10562.56	$	9851.96
Aug-2000	$	10482.97	$	11165.39	$	10509.19	$	10486.43	$	11174.13	$	10513.03
Sep-2000	$	9929.88	$	10075.78	$	10504.12	$	9932.75	$	10083.53	$	10510.46
Oct-2000	$	9887.77	$	9812.58	$	10699.32	$	9891.03	$	9821.36	$	10707.01
Nov-2000	$	9109.01	$	8769.54	$	10152.09	$	9111.62	$	8777.35	$	10158.81
Dec-2000	$	9152.28	$	8387.56	$	10672.15	$	9156.21	$	8397.29	$	10681.99
Jan-2001	$	9475.73	$	8624.52	$	11119.97	$	9481.26	$	8636.61	$	11132.76
Feb-2001	$	8612.04	$	7610.73	$	10381.99	$	8616.57	$	7621.81	$	10394.66
Mar-2001	$	8067.64	$	6925.21	$	9973.33	$	8070.28	$	6935.09	$	9984.07
Apr-2001	$	8692.98	$	7541.77	$	10647.64	$	8697.34	$	7555.08	$	10660.99
May-2001	$	8750.58	$	7558.89	$	10756.94	$	8755.61	$	7573.22	$	10772.93
Jun-2001	$	8537.14	$	7455.86	$	10407.49	$	8542.85	$	7470.22	$	10423.89
Jul-2001	$	8452.22	$	7435.04	$	10225.23	$	8459.13	$	7450.80	$	10243.56
Aug-2001	$	7923.26	$	6935.45	$	9634.57	$	7929.59	$	6950.85	$	9651.48
Sep-2001	$	7283.64	$	6468.93	$	8718.19	$	7288.88	$	6484.45	$	8734.59
Oct-2001	$	7420.53	$	6706.03	$	8717.18	$	7428.09	$	6723.07	$	8734.59
Nov-2001	$	7989.19	$	7299.03	$	9268.26	$	7997.83	$	7318.74	$	9289.24
Dec-2001	$	8057.94	$	7307.85	$	9407.61	$	8068.21	$	7329.72	$	9430.43
Jan-2002	$	7939.52	$	7295.55	$	9148.93	$	7950.41	$	7318.72	$	9172.04
Feb-2002	$	7786.77	$	7079.05	$	9065.54	$	7796.97	$	7102.82	$	9090.41
Mar-2002	$	8078.06	$	7246.80	$	9526.49	$	8090.14	$	7271.87	$	9555.84
Apr-2002	$	7587.76	$	6726.88	$	9048.54	$	7599.87	$	6751.20	$	9077.09
May-2002	$	7531.56	$	6596.29	$	9084.39	$	7543.64	$	6620.23	$	9113.40
Jun-2002	$	6994.61	$	6066.48	$	8509.74	$	7006.53	$	6089.29	$	8538.34
Jul-2002	$	6450.38	$	5775.13	$	7591.25	$	6460.72	$	5797.00	$	7615.35
Aug-2002	$	6491.98	$	5810.93	$	7640.94	$	6503.36	$	5833.52	$	7667.89
Sep-2002	$	5787.14	$	5209.13	$	6769.93	$	5796.45	$	5229.75	$	6791.45
Oct-2002	$	6295.54	$	5689.43	$	7329.64	$	6306.53	$	5713.50	$	7355.82
Nov-2002	$	6663.74	$	5963.01	$	7842.85	$	6677.99	$	5990.61	$	7872.20
Dec-2002	$	6272.77	$	5575.20	$	7433.76	$	6285.99	$	5601.22	$	7462.85
Jan-2003	$	6107.74	$	5434.86	$	7229.43	$	6121.30	$	5461.19	$	7258.36
Feb-2003	$	6015.97	$	5418.72	$	7032.03	$	6029.48	$	5444.81	$	7060.94
Mar-2003	$	6074.49	$	5527.75	$	7021.75	$	6087.96	$	5555.33	$	7051.76
Apr-2003	$	6573.79	$	5896.43	$	7714.18	$	6589.61	$	5926.99	$	7749.18
May-2003	$	6918.81	$	6087.00	$	8281.35	$	6936.88	$	6120.21	$	8319.52
Jun-2003	$	7006.26	$	6195.99	$	8339.32	$	7025.68	$	6231.59	$	8380.25
Jul-2003	$	7128.85	$	6275.92	$	8522.73	$	7149.33	$	6313.23	$	8566.29
Aug-2003	$	7267.22	$	6384.58	$	8706.15	$	7288.74	$	6423.08	$	8751.32
Sep-2003	$	7189.34	$	6363.24	$	8546.75	$	7211.48	$	6403.17	$	8592.92
Oct-2003	$	7595.35	$	6648.78	$	9129.41	$	7619.65	$	6690.67	$	9180.68
Nov-2003	$	7661.58	$	6703.88	$	9210.14	$	7686.69	$	6748.24	$	9263.27
Dec-2003	$	8062.24	$	6992.21	$	9776.09	$	8089.81	$	7038.85	$	9835.40
Jan-2004	$	8209.07	$	7122.96	$	9947.20	$	8238.30	$	7172.80	$	10009.38
Feb-2004	$	8322.63	$	7159.41	$	10171.22	$	8352.82	$	7209.59	$	10235.60
Mar-2004	$	8196.07	$	6990.11	$	10097.96	$	8226.81	$	7040.56	$	10164.54

Performance figures assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Funds, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Funds. These expenses negatively impact the performance of each Fund. Each Fund’s past performance is no guarantee of future results.

4 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

FUND ALLOCATION BY SECTOR

(% of Net Assets)

[GRAPHIC APPEARS HERE]

S&P 500

Consumer Discretionary	11.19	%
Consumer Staples	11.33	%
Energy	5.96	%
Financials	21.26	%
Health Care	13.12	%
Industrials	10.67	%
Information Technology	16.95	%
Materials	2.93	%
Short-Term and Net Other Assets	0.14	%
Telecommunication Services	3.53	%
Utilities	2.92	%

S&P 500/BARRA GROWTH

Consumer Discretionary	6.93	%
Consumer Staples	20.46	%
Energy	0.73	%
Financials	4.85	%
Health Care	22.84	%
Industrials	12.43	%
Information Technology	28.26	%
Materials	2.41	%
Short-Term and Net Other Assets	0.12	%
Telecommunication Services	0.87	%
Utilities	0.10	%

S&P 500/BARRA VALUE

Consumer Discretionary	15.26	%
Consumer Staples	2.60	%
Energy	10.95	%
Financials	37.00	%
Health Care	3.83	%
Industrials	8.98	%
Information Technology	6.18	%
Materials	3.44	%
Short-Term and Net Other Assets	0.08	%
Telecommunication Services	6.07	%
Utilities	5.61	%

The iShares S&P 500 Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Standard & Poor’s 500 Index (the “Index”). For the one-year period ended March 31, 2004 (the “reporting period”), the Fund returned 34.93%, compared to a return of 35.12% by the Index.

The iShares S&P 500/BARRA Growth Index Fund (the “Growth Fund”) and iShares S&P 500/BARRA Value Index Fund (the “Value Fund”) seek investment results that correspond generally to the price and yield performance, before fees and expenses, of the growth and value components of the Index, as measured by the Standard & Poor’s 500/BARRA Growth Index (the “Growth Index”) and the Standard & Poor’s 500/BARRA Value Index (the “Value Index”), respectively. For the reporting period, the Growth Fund and the Value Fund returned 26.46% and 43.80%, respectively, while the Growth Index returned 26.74% and the Value Index returned 44.14%.

Equity markets rebounded during the reporting period. Positive economic news and corporate earnings growth provided signs of encouragement during the reporting period, and equities responded positively. While gross domestic product (GDP) figures revealed signs of economic growth during the reporting period, jobless claims remained high during much of the period, leading to concerns about the strength of the recovery. However, in January the unemployment rate fell to 5.6%, the lowest rate since the 5.4% recorded in October 2001. Jobless claims also began to drop, dipping to a three-year low by mid-March. Even so, at its March 16 meeting the Federal Reserve Board kept its benchmark interest rate at its 46-year low of 1.0%, citing low inflation, ample factory capacity and high unemployment levels.

During the reporting period, smaller capitalization stocks generally outperformed larger capitalization stocks, and value stocks within the Index outperformed growth stocks.

Within the Index, the top-performing sector was materials, followed closely by financials and information technology. All three sectors benefited from improving economic conditions. Financial stocks, in particular, were buoyed by increased valuations and a return of investor activity.

All of the ten largest holdings in the Fund delivered positive returns during the reporting period. Technology bellwethers Cisco Systems Inc. (1.54% of the net assets of the Fund as of March 31, 2004) and Intel Corp. (1.68% of the net assets of the Fund as of March 31, 2004) were the top performers, with gains of 81.59% and 67.08%, respectively. Technology giant Microsoft Corp. (2.57% of the net assets of the Fund as of March 31, 2004), however, delivered the poorest performance of the top ten, with a 2.97% gain. Among financial companies, Citigroup Inc. (2.54% of the net assets of the Fund as of March 31, 2004) climbed 50.07%, and American International Group Inc. (1.78% of the net assets of the Fund as of March 31, 2004) rose 44.29%, during the reporting period.

MANAGERS’ DISCUSSION & ANALYSIS 5

Managers’ Discussion & Analysis

iSHARES^® S&P MIDCAP 400 INDEX FUNDS

Performance as of 3/31/04

	AVERAGE ANNUAL TOTAL RETURNS												CUMULATIVE TOTAL RETURNS
	YEAR ENDED 3/31/04						INCEPTION TO 3/31/04						INCEPTION TO 3/31/04
iSHARES INDEX FUND	NAV		MARKET		INDEX		NAV		MARKET		INDEX		NAV		MARKET		INDEX
S&P MidCap 400	48.81	%	48.93	%	49.10	%	8.10	%	8.06	%	8.29	%	35.08	%	34.91	%	35.99	%
S&P MidCap 400/BARRA Growth	40.86	%	40.79	%	41.18	%	(2.08	)%	(2.12	)%	(1.80	)%	(7.47	)%	(7.61	)%	(6.47	)%
S&P MidCap 400/BARRA Value	56.59	%	56.64	%	57.05	%	15.14	%	15.12	%	15.39	%	68.16	%	68.07	%	69.62	%

Total returns for the periods since inception are calculated from the inception date of each Fund (5/22/00, 7/24/00 and 7/24/00, respectively). “Average annual total returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative total returns” represent the total change in value of an investment over the periods indicated.

Certain sectors and markets performed exceptionally well based on market conditions during the one-year period. Investors should not expect that such exceptional returns will be repeated.

A fund’s per share net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of each Fund, and the market return is based on the market price per share of each Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which the shares of the Funds are listed for trading, as of the time that the Funds’ NAV is calculated. Since fund shares typically do not trade in the secondary market until several days after fund inception, for the period from inception to the first day of secondary market trading in fund shares (5/26/00, 7/28/00 and 7/28/00, respectively), the NAV of the Funds is used as a proxy for secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Funds at Market Price and NAV, respectively.

An index is a statistical composite that tracks a specified financial market or sector. Unlike the Funds, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Funds. These expenses negatively impact the performance of each Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. The returns shown in the tables above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Funds will vary with changes in market conditions. Shares of the Funds may be worth more or less than their original cost when they are redeemed or sold in the market. Each Fund’s past performance is no guarantee of future results.

GROWTH OF $10,000 INVESTMENT

SINCE INCEPTION AT NET ASSET VALUE

[GRAPHIC APPEARS HERE]

	iSHARES S&P MIDCAP 400 INDEX FUND		iSHARES S&P MIDCAP 400/BARRA GROWTH INDEX FUND		iSHARES S&P MIDCAP 400/BARRA VALUE INDEX FUND		STANDARD & POOR’S MIDCAP 400 INDEX		STANDARD & POOR’S MIDCAP 400/BARRA GROWTH INDEX		STANDARD & POOR’S MIDCAP 400/BARRA VALUE INDEX
5/31/2000	$	10000.00			$	10000.00
6/30/2000	$	10418.32			$	10415.90
7/31/2000	$	10576.04	$	10000.00	$	10000.00	$	10580.47	$	10000.00	$	10000.00
8/31/2000	$	11752.47	$	11032.98	$	10726.55	$	11762.30	$	11041.70	$	10730.00
9/30/2000	$	11671.09	$	10758.17	$	10882.61	$	11682.32	$	10768.97	$	10888.81
10/31/2000	$	11280.36	$	10168.76	$	10777.29	$	11286.29	$	10184.22	$	10785.36
11/30/2000	$	10422.04	$	8725.45	$	10789.76	$	10434.18	$	8740.09	$	10799.38
12/31/2000	$	11216.26	$	9161.05	$	11888.97	$	11232.39	$	9183.22	$	11903.08
1/31/2001	$	11464.25	$	9159.57	$	12413.99	$	11482.87	$	9183.29	$	12433.96
2/28/2001	$	10808.38	$	8405.33	$	12000.38	$	10827.20	$	8429.34	$	12022.39
3/31/2001	$	10004.12	$	7492.38	$	11471.43	$	10022.74	$	7516.44	$	11493.41
4/30/2001	$	11107.33	$	8506.30	$	12507.68	$	11128.25	$	8532.67	$	12533.56
5/31/2001	$	11366.79	$	8736.30	$	12760.46	$	11387.54	$	8767.32	$	12781.73
6/30/2001	$	11319.00	$	8650.56	$	12779.66	$	11341.99	$	8684.90	$	12802.18
7/31/2001	$	11148.68	$	8390.93	$	12776.86	$	11172.99	$	8426.96	$	12803.46
8/31/2001	$	10781.82	$	8007.04	$	12515.05	$	10807.63	$	8042.69	$	12543.55
9/30/2001	$	9441.05	$	6901.95	$	11110.80	$	9463.16	$	6934.41	$	11136.16
10/31/2001	$	9859.15	$	7429.26	$	11289.38	$	9881.44	$	7465.58	$	11311.00
11/30/2001	$	10590.35	$	8087.90	$	11971.07	$	10616.61	$	8130.02	$	11998.71
12/31/2001	$	11140.50	$	8407.53	$	12726.87	$	11165.49	$	8451.16	$	12754.63
1/31/2002	$	11076.89	$	8317.96	$	12714.18	$	11107.43	$	8364.11	$	12752.07
2/28/2002	$	11088.95	$	8134.39	$	13013.14	$	11120.76	$	8180.10	$	13054.30
3/31/2002	$	11879.83	$	8692.22	$	13972.22	$	11915.90	$	8742.89	$	14020.32
4/30/2002	$	11822.70	$	8465.62	$	14180.02	$	11859.89	$	8517.32	$	14230.62
5/31/2002	$	11621.67	$	8326.41	$	13931.23	$	11659.46	$	8378.49	$	13983.01
6/30/2002	$	10768.22	$	7553.84	$	13146.05	$	10805.99	$	7606.00	$	13197.16
7/31/2002	$	9724.64	$	6873.79	$	11780.84	$	9758.89	$	6922.98	$	11828.62
8/31/2002	$	9771.98	$	6880.46	$	11881.49	$	9807.68	$	6930.59	$	11932.71
9/30/2002	$	8983.72	$	6450.05	$	10713.16	$	9017.18	$	6498.82	$	10758.53
10/31/2002	$	9371.01	$	6749.54	$	11138.62	$	9407.63	$	6801.01	$	11188.87
11/30/2002	$	9911.66	$	7097.95	$	11850.08	$	9952.33	$	7154.66	$	11907.20
12/31/2002	$	9502.34	$	6776.04	$	11408.07	$	9543.29	$	6831.27	$	11465.44
1/31/2003	$	9223.83	$	6615.02	$	11011.00	$	9264.62	$	6670.05	$	11068.74
2/28/2003	$	9002.80	$	6438.42	$	10776.75	$	9044.12	$	6492.63	$	10835.19
3/31/2003	$	9077.27	$	6567.96	$	10739.69	$	9120.10	$	6625.73	$	10800.51
4/30/2003	$	9736.49	$	6986.12	$	11611.48	$	9782.21	$	7048.45	$	11677.51
5/31/2003	$	10540.85	$	7456.27	$	12741.37	$	10593.16	$	7524.93	$	12818.41
6/30/2003	$	10672.73	$	7615.80	$	12791.69	$	10727.69	$	7686.71	$	12870.96
7/31/2003	$	11051.40	$	7927.30	$	13172.87	$	11108.53	$	8001.10	$	13258.38
8/31/2003	$	11547.78	$	8238.80	$	13837.41	$	11612.85	$	8319.54	$	13934.56
9/30/2003	$	11369.10	$	8066.60	$	13698.19	$	11435.18	$	8147.33	$	13798.00
10/31/2003	$	12226.18	$	8623.28	$	14818.06	$	12299.68	$	8711.12	$	14928.05
11/30/2003	$	12650.27	$	8882.27	$	15398.20	$	12728.18	$	8973.15	$	15517.41
12/31/2003	$	12862.16	$	8853.70	$	15947.51	$	12942.97	$	8946.11	$	16073.79
1/31/2004	$	13139.03	$	9001.96	$	16362.07	$	13223.46	$	9097.42	$	16495.45
2/29/2004	$	13452.74	$	9192.68	$	16791.12	$	13540.99	$	9291.80	$	16931.76
3/31/2004	$	13507.06	$	9251.90	$	16818.56	$	13598.49	$	9353.88	$	16962.64

Performance figures assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Funds, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Funds. These expenses negatively impact the performance of each Fund. Each Fund’s past performance is no guarantee of future results.

6 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

FUND ALLOCATION BY SECTOR

(% of Net Assets)

[GRAPHIC APPEARS HERE]

S&P MIDCAP 400

Consumer Discretionary	18.20	%
Consumer Staples	4.56	%
Energy	6.93	%
Financials	19.72	%
Health Care	11.79	%
Industrials	11.93	%
Information Technology	15.83	%
Materials	4.06	%
Short-Term and Net Other Assets	0.09	%
Telecommunication Services	0.58	%
Utilities	6.31	%

S&P MIDCAP 400/BARRA GROWTH

Consumer Discretionary	23.11	%
Consumer Staples	3.50	%
Energy	4.66	%
Financials	12.51	%
Health Care	19.58	%
Industrials	13.05	%
Information Technology	21.19	%
Materials	0.74	%
Short-Term and Net Other Assets	0.05	%
Telecommunication Services	0.20	%
Utilities	1.41	%

S&P MIDCAP 400/BARRA VALUE

Consumer Discretionary	13.44	%
Consumer Staples	5.60	%
Energy	9.15	%
Financials	26.79	%
Health Care	4.20	%
Industrials	10.82	%
Information Technology	10.56	%
Materials	7.30	%
Short-Term and Net Other Assets	0.09	%
Telecommunication Services	0.96	%
Utilities	11.09	%

The iShares S&P Midcap 400 Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Standard & Poor’s MidCap 400 Index (the “Index”). For the one-year period ended March 31, 2004 (the “reporting period”), the Fund returned 48.81%, compared to a return of 49.10% by the Index.

The iShares S&P Midcap 400/BARRA Growth Index Fund (the “Growth Fund”) and iShares S&P Midcap 400/BARRA Value Index Fund (the “Value Fund”) seek investment results that correspond generally to the price and yield performance, before fees and expenses, of the growth and value components of the Index, as measured by the Standard & Poor’s MidCap 400/BARRA Growth Index (the “Growth Index”) and the Standard & Poor’s MidCap 400/BARRA Value Index (the “Value Index”), respectively. For the reporting period, the Growth Fund and the Value Fund returned 40.86% and 56.59%, respectively, while the Growth Index returned 41.18% and the Value Index returned 57.05%.

Equity markets rebounded during the reporting period. Positive economic news and corporate earnings growth provided signs of encouragement during the reporting period, and equities responded positively. While gross domestic product (GDP) figures revealed signs of economic growth during the reporting period, jobless claims remained high during much of the period, leading to concerns about the strength of the recovery. However, in January the unemployment rate fell to 5.6%, the lowest rate since the 5.4% recorded in October 2001. Jobless claims also began to drop, dipping to a three-year low by mid-March. Even so, at its March 16 meeting the Federal Reserve Board kept its benchmark interest rate at its 46-year low of 1.0%, citing low inflation, ample factory capacity and high unemployment levels.

Mid-capitalization stocks, as represented by the Index, outperformed the broader market, as represented by the S&P 500 Index. Value stocks generally outperformed their growth counterparts by a wide margin during the reporting period.

Every sector within the Index posted healthy gains during the reporting period. Information technology stocks led the way, followed closely by consumer discretionary stocks, as both groups benefited from the improved economic conditions during the reporting period.

Among the Fund’s ten largest holdings, all delivered double-digit or triple-digit returns. The two strongest performers were both homebuilders, which have tended to perform well due to the increased demand for housing spurred by historically low interest rates. D.R. Horton Inc. and the Class A shares of Lennar Corp. (0.81% and 0.83%, respectively, of the net assets of the Fund as of March 31, 2004) gained 176.80% and 121.79%. Retailer Coach Inc. (0.75% of the net assets of the Fund as of March 31, 2004) climbed 113.88% along with other consumer discretionary stocks. Financial stocks New York Community Bancorp Inc. (0.91% of the net assets of the Fund as of March 31, 2004) rose 104.50%, Fidelity National Financial Inc. (0.64% of the net assets of the Fund as of March 31, 2004) returned 59.44%, and Sovereign Bancorp Inc. (0.64% of the net assets of the Fund as of March 31, 2004) gained 54.66%. Among the ten largest holdings, the weakest performer was Affiliated Computer Services Inc. Class A shares (0.70% of the net assets of the Fund as of March 31, 2004) which returned 17.26% during the reporting period.

MANAGERS’ DISCUSSION & ANALYSIS 7

Managers’ Discussion & Analysis

iSHARES^® S&P SMALLCAP 600 INDEX FUNDS

Performance as of 3/31/04

	AVERAGE ANNUAL TOTAL RETURNS												CUMULATIVE TOTAL RETURNS
	YEAR ENDED 3/31/04						INCEPTION TO 3/31/04						INCEPTION TO 3/31/04
iSHARES INDEX FUND	NAV		MARKET		INDEX		NAV		MARKET		INDEX		NAV		MARKET		INDEX
S&P SmallCap 600	56.27	%	56.23	%	56.49	%	11.10	%	11.09	%	11.26	%	50.12	%	50.06	%	50.97	%
S&P SmallCap 600/BARRA Growth	50.24	%	50.36	%	50.54	%	3.64	%	3.65	%	3.89	%	14.11	%	14.13	%	15.12	%
S&P SmallCap 600/BARRA Value	61.91	%	61.99	%	62.26	%	13.99	%	13.98	%	14.25	%	62.07	%	62.00	%	63.51	%

Total returns for the periods since inception are calculated from the inception date of each Fund (5/22/00, 7/24/00 and 7/24/00, respectively). “Average annual total returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative total returns” represent the total change in value of an investment over the periods indicated.

Certain sectors and markets performed exceptionally well based on market conditions during the one-year period. Investors should not expect that such exceptional returns will be repeated.

A fund’s per share net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of each Fund, and the market return is based on the market price per share of each Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which the shares of the Fundsare listed for trading, as of the time that the Funds’ NAV is calculated. Since fund shares typically do not trade in the secondary market until several days after fund inception, for the period from inception to the first day of secondary market trading in fund shares (5/26/00, 7/28/00 and 7/28/00, respectively), the NAV of the Funds is used as a proxy for secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Funds at Market Price and NAV, respectively.

An index is a statistical composite that tracks a specified financial market or sector. Unlike the Funds, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Funds. These expenses negatively impact the performance of each Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. The returns shown in the tables above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Funds will vary with changes in market conditions. Shares of the Funds may be worth more or less than their original cost when they are redeemed or sold in the market. Each Fund’s past performance is no guarantee of future results.

GROWTH OF $10,000 INVESTMENT

SINCE INCEPTION AT NET ASSET VALUE

[GRAPHIC APPEARS HERE]

	iSHARES S&P SMALL CAP 600 INDEX		iSHARES S&P SMALL CAP 600/BARRA GROWTH INDEX FUND		iSHARES S&P SMALL CAP 600/BARRA VALUE INDEX FUND		STANDARD & POOR’S SMALL CAP 600 INDEX		STANDARD & POOR’S SMALL CAP 600/BARRA GROWTH INDEX		STANDARD & POOR’S 600/BARRA SMALL CAP VALUE INDEX
5/31/2000	$	10000.00			$	10000.00
6/30/2000	$	10761.86			$	10764.69
7/31/2000	$	10493.25	$	10000.00	$	10000.00	$	10500.96	$	10000.00	$	10000.00
8/31/2000	$	11420.62	$	10695.91	$	10589.68	$	11431.34	$	10706.38	$	10589.46
9/30/2000	$	11107.60	$	10123.56	$	10565.87	$	11120.41	$	10136.80	$	10568.28
10/31/2000	$	11184.26	$	10202.75	$	10627.43	$	11190.47	$	10215.87	$	10619.68
11/30/2000	$	10019.02	$	8669.28	$	9925.38	$	10025.54	$	8683.49	$	9917.72
12/31/2000	$	11250.14	$	9461.33	$	11320.65	$	11260.69	$	9481.50	$	11318.10
1/31/2001	$	11733.02	$	9467.37	$	12217.80	$	11743.77	$	9489.08	$	12214.49
2/28/2001	$	11015.42	$	8662.00	$	11699.87	$	11027.40	$	8683.46	$	11699.04
3/31/2001	$	10508.42	$	8213.84	$	11212.60	$	10521.24	$	8234.52	$	11213.53
4/30/2001	$	11304.49	$	9004.75	$	11887.99	$	11322.96	$	9033.27	$	11888.59
5/31/2001	$	11519.82	$	9105.12	$	12186.52	$	11539.23	$	9136.25	$	12191.74
6/30/2001	$	11929.77	$	9378.46	$	12639.88	$	11961.57	$	9429.53	$	12657.47
7/31/2001	$	11739.11	$	9163.17	$	12524.44	$	11761.81	$	9201.33	$	12538.49
8/31/2001	$	11468.66	$	8886.20	$	12321.67	$	11493.64	$	8927.13	$	12336.62
9/30/2001	$	9918.51	$	7757.73	$	10551.49	$	9939.70	$	7794.28	$	10571.25
10/31/2001	$	10445.47	$	8237.75	$	11013.88	$	10469.48	$	8268.17	$	11054.36
11/30/2001	$	11207.67	$	8778.62	$	11892.38	$	11235.85	$	8813.87	$	11938.70
12/31/2001	$	11963.94	$	9330.67	$	12748.37	$	11996.52	$	9368.26	$	12800.68
1/31/2002	$	12067.92	$	9316.14	$	12983.26	$	12100.89	$	9355.15	$	13040.05
2/28/2002	$	11859.96	$	9026.86	$	12928.26	$	11892.75	$	9066.07	$	12983.98
3/31/2002	$	12793.69	$	9660.00	$	14047.58	$	12832.28	$	9704.33	$	14112.29
4/30/2002	$	13153.79	$	9798.04	$	14620.80	$	13195.43	$	9844.07	$	14689.48
5/31/2002	$	12608.44	$	9350.03	$	14063.96	$	12649.14	$	9395.18	$	14132.75
6/30/2002	$	11954.97	$	8791.11	$	13430.32	$	11995.18	$	8836.17	$	13501.01
7/31/2002	$	10265.73	$	7738.55	$	11244.89	$	10300.26	$	7779.36	$	11305.75
8/31/2002	$	10362.64	$	7891.16	$	11229.97	$	10398.12	$	7934.95	$	11291.05
9/30/2002	$	9728.38	$	7500.23	$	10403.08	$	9761.75	$	7542.96	$	10460.03
10/31/2002	$	10037.39	$	7823.85	$	10609.44	$	10074.13	$	7870.33	$	10670.28
11/30/2002	$	10558.31	$	8215.34	$	11179.16	$	10598.99	$	8265.42	$	11246.47
12/31/2002	$	10201.44	$	7880.04	$	10880.93	$	10241.80	$	7929.84	$	10948.44
1/31/2003	$	9848.95	$	7661.69	$	10429.62	$	9889.48	$	7712.56	$	10496.27
2/28/2003	$	9532.02	$	7453.04	$	10042.78	$	9573.02	$	7503.55	$	10107.91
3/31/2003	$	9606.64	$	7593.76	$	10009.62	$	9648.65	$	7646.87	$	10076.57
4/30/2003	$	10384.05	$	8136.43	$	10912.75	$	10432.12	$	8193.62	$	10987.50
5/31/2003	$	11220.14	$	8685.17	$	11927.09	$	11272.95	$	8747.51	$	12011.53
6/30/2003	$	11508.91	$	8873.12	$	12276.79	$	11566.04	$	8939.08	$	12368.27
7/31/2003	$	12107.24	$	9360.47	$	12876.40	$	12167.48	$	9431.62	$	12973.08
8/31/2003	$	12694.02	$	9819.87	$	13494.08	$	12760.03	$	9895.66	$	13597.09
9/30/2003	$	12319.96	$	9564.04	$	13049.72	$	12384.89	$	9638.37	$	13151.10
10/31/2003	$	13387.28	$	10368.14	$	14209.29	$	13458.66	$	10450.89	$	14322.86
11/30/2003	$	13893.08	$	10722.14	$	14793.61	$	13967.99	$	10809.73	$	14914.07
12/31/2003	$	14138.51	$	10799.74	$	15205.54	$	14215.36	$	10888.94	$	15331.10
1/31/2004	$	14543.07	$	11163.91	$	15565.67	$	14624.10	$	11257.94	$	15697.00
2/29/2004	$	14821.20	$	11322.25	$	15931.85	$	14905.52	$	11419.71	$	16069.31
3/31/2004	$	15011.62	$	11409.75	$	16205.87	$	15099.79	$	11511.48	$	16349.84

Performance figures assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Funds, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Funds. These expenses negatively impact the performance of each Fund. Each Fund’s past performance is no guarantee of future results.

8 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

FUND ALLOCATION BY SECTOR

(% of Net Assets)

[GRAPHIC APPEARS HERE]

S&P SMALLCAP 600

Consumer Discretionary	18.96	%
Consumer Staples	3.34	%
Energy	5.60	%
Financials	14.37	%
Health Care	12.94	%
Industrials	18.94	%
Information Technology	16.47	%
Materials	5.28	%
Short-Term and Net Other Assets	0.06	%
Telecommunication Services	0.38	%
Utilities	3.66	%

S&P SMALLCAP 600/BARRA GROWTH

Consumer Discretionary	22.58	%
Consumer Staples	2.31	%
Energy	3.63	%
Financials	9.99	%
Health Care	19.98	%
Industrials	15.19	%
Information Technology	22.80	%
Materials	2.52	%
Short-Term and Net Other Assets	0.06	%
Telecommunication Services	0.46	%
Utilities	0.48	%

S&P SMALLCAP 600/BARRA VALUE

Consumer Discretionary	15.75	%
Consumer Staples	4.25	%
Energy	7.35	%
Financials	18.26	%
Health Care	6.70	%
Industrials	22.27	%
Information Technology	10.84	%
Materials	7.73	%
Short-Term and Net Other Assets	0.07	%
Telecommunication Services	0.30	%
Utilities	6.48	%

The iShares S&P SmallCap 600 Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Standard & Poor’s SmallCap 600 Index (the “Index”). For the one-year period ended March 31, 2004 (the “reporting period”), the Fund returned 56.27%, compared to a return of 56.49% by the Index.

The iShares S&P SmallCap 600/BARRA Growth Index Fund (the “Growth Fund”) and iShares S&P SmallCap 600/BARRA Value Index Fund (the “Value Fund”) seek investment results that correspond generally to the price and yield performance, before fees and expenses, of the growth and value components of the Index, as measured by the Standard & Poor’s SmallCap 600/BARRA Growth Index (the “Growth Index”) and the Standard & Poor’s SmallCap 600/BARRA Value Index (the “Value Index”), respectively. For the reporting period, the Growth Fund and the Value Fund returned 50.24% and 61.91%, respectively, while the Growth Index returned 50.54% and the Value Index returned 62.26%.

Equity markets rebounded during the reporting period. Positive economic news and corporate earnings growth provided signs of encouragement during the reporting period, and equities responded positively. While gross domestic product (GDP) figures revealed signs of economic growth during the reporting period, jobless claims remained high during much of the period, leading to concerns about the strength of the recovery. However, in January the unemployment rate fell to 5.6%, the lowest rate since the 5.4% recorded in October 2001. Jobless claims also began to drop, dipping to a three-year low by mid-March. Even so, at its March 16 meeting the Federal Reserve Board kept its benchmark interest rate at its 46-year low of 1.0%, citing low inflation, ample factory capacity and high unemployment levels.

During the reporting period, small capitalization stocks, as represented by the Index, generally outperformed larger capitalization stocks, as represented by the S&P 500 Index, and value stocks generally outperformed growth stocks.

As economic conditions improved, sectors such as consumer discretionary and materials were some of the biggest beneficiaries. Information technology stocks and financials also performed well in the stronger economic environment than they had in previous reporting periods.

All of the ten largest Fund holdings delivered positive returns, although, combined, these holdings represented less than 5% of the Fund’s net assets as of March 31, 2004. Biopharmaceutical company MGI Pharma Inc. (0.47% of the net assets of the Fund as of March 31, 2004) led the way with a 386.19% gain, and financial company Fremont General Corp. (0.51% of the net assets of the Fund as of March 31, 2004) climbed 340.29%. Nutritional supplement maker NBTY Inc. (0.54% of the net assets of the Fund as of March 31, 2004) rose 96.10%, and Polaris Industries Inc., which produces high-performance motorized vehicles (0.43% of the net assets of the Fund as of March 31, 2004) rose 82.78%. The weakest performer among the ten largest holdings was Alliant Techsystems Inc. (0.46% of the net assets of the Fund as of March 31, 2004), which gained 0.72% during the reporting period.

MANAGERS’ DISCUSSION & ANALYSIS 9

Managers’ Discussion & Analysis

iSHARES^® S&P 1500 INDEX FUND

Performance as of 3/31/04

Total Returns
Inception to 3/31/04
NAV	MARKET		INDEX
(0.57)%	(0.66	)%	(0.53	)%

“Total returns” represent the total change in value of an investment over the period indicated and is calculated from the inception date of the Fund (1/20/04).

A fund’s per share net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which the shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since fund shares typically do not trade in the secondary market until several days after fund inception, for the period from inception to the first day of secondary market trading in fund shares (1/23/04), the NAV of the Fund is used as a proxy for secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the Index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. 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. The Fund’s past performance is no guarantee of future results.

As of the fiscal year ended 3/31/04, the Fund did not have six months of performance and therefore a line graph is not presented.

FUND ALLOCATION BY SECTOR

(% of Net Assets)

[GRAPHIC APPEARS HERE]

Consumer Discretionary	12.11	%
Consumer Staples	10.46	%
Energy	6.03	%
Financials	20.85	%
Health Care	12.99	%
Industrials	11.10	%
Information Technology	16.85	%
Materials	3.12	%
Short-Term and Net Other Assets	0.10	%
Telecommunication Services	3.16	%
Utilities	3.23	%

The iShares S&P 1500 Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Standard & Poor’s 1500 Index (the “Index”). From its inception on January 20, 2004 through March 31, 2004 (the “reporting period”), the Fund declined 0.57%, compared to a decline of 0.53% by the Index.

At the time of the Fund’s inception, the economy appeared to be in recovery. However, alternating positive and discouraging news made the outlook hazy. In February, two pieces of economic data offered encouragement: fourth quarter gross domestic product (GDP) figures were revealed to be a 4.1% annual rate, slightly above the government’s initial estimate of 4.0%. In addition, the unemployment rate fell to 5.6% in January, the lowest rate since the 5.4% recorded in October 2001. On the other hand, renewed conflict in Iraq and reports of outsourcing of U.S. jobs overseas fueled concerns and weighed on equity markets. Against this backdrop, markets followed a somewhat bumpy pattern, but ultimately finished the reporting period about where they had started.

Within the Index, sector performance was mixed during the reporting period. Some of the sectors that had delivered the strongest performance over the course of the past twelve months, such as information technology and telecommunications were the ones to suffer declines during the reporting period, as some investors realized gains. During the reporting period, the better performers included consumer staples, energy, and utilities.

10 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Among the Fund’s ten largest holdings, performance was also mixed during the reporting period. Technology bellwethers Cisco Systems Inc., Intel Corp. and Microsoft Corp. (respectively 1.35%, 1.48%, and 2.26% of the net assets of the Fund as of March 31, 2004) declined 18.33%, 16.59%, and 11.28%, respectively. The top holding at 2.60% of the Fund’s net assets as of March 31, 2004, General Electric Co. declined 8.51%. On the positive side, Wal-Mart Stores Inc. (2.16% of the net assets of the Fund as of March 31, 2004) was the top performer with a 12.73% gain, and American International Group Inc. (1.56% of the net assets of the Fund as of March 31, 2004) returned 3.26% during the reporting period.

MANAGERS’ DISCUSSION & ANALYSIS 11

Schedule of Investments

iSHARES^® S&P 500 INDEX FUND

March 31, 2004

Security	Shares	Value
COMMON STOCKS – 99.86%
General Electric Co.	8,264,162	$	252,222,224
Exxon Mobil Corp.	5,313,968		221,007,929
Microsoft Corp.	8,747,375		218,421,954
Pfizer Inc.	6,179,053		216,575,808
Citigroup Inc.	4,174,037		215,797,713
Wal-Mart Stores Inc.	3,507,063		209,336,590
American International Group Inc.	2,114,146		150,844,317
Intel Corp.	5,254,266		142,916,035
Cisco Systems Inc.1	5,569,255		130,988,878
International Business Machines Corp.	1,377,095		126,472,405
Johnson & Johnson	2,404,938		121,978,455
Procter & Gamble Co.	1,047,265		109,837,153
Coca-Cola Co. (The)	1,981,438		99,666,331
Bank of America Corp.	1,174,131		95,081,128
Altria Group Inc.	1,658,435		90,301,786
Verizon Communications Inc.	2,237,680		81,764,827
Merck & Co. Inc.	1,802,368		79,646,642
Wells Fargo & Company	1,371,040		77,696,837
ChevronTexaco Corp.	866,797		76,087,441
PepsiCo Inc.	1,385,790		74,624,792
JP Morgan Chase & Co.	1,667,694		69,959,763
Dell Inc.1	2,074,675		69,750,574
Home Depot Inc.	1,843,560		68,875,402
SBC Communications Inc.	2,680,115		65,770,022
United Parcel Service Inc. Class B	914,848		63,892,984
Time Warner Inc.1	3,689,050		62,197,383
Lilly (Eli) & Co.	910,517		60,913,587
Amgen Inc.1	1,045,202		60,799,400
Fannie Mae	787,306		58,536,201
Hewlett-Packard Co.	2,471,836		56,456,734
Viacom Inc. Class B	1,417,331		55,573,549
American Express Co.	1,042,201		54,038,122
Comcast Corp. Class A1	1,823,796		52,415,897
Abbott Laboratories	1,266,876		52,068,604
3M Co.	634,925		51,981,310
Morgan Stanley	888,790		50,927,667
Oracle Corp.1	4,235,592		50,869,460
Wachovia Corp.	1,065,356		50,071,732
Bank One Corp.	907,122		49,456,291
Medtronic Inc.	982,155		46,897,901
Merrill Lynch & Co. Inc.	786,152		46,823,213
Tyco International Ltd.	1,620,367		46,423,515
QUALCOMM Inc.	652,302		43,325,899
U.S. Bancorp	1,555,520		43,010,128
Walt Disney Co. (The)	1,658,971		41,457,685
BellSouth Corp.	1,483,883		41,088,720
Texas Instruments Inc.	1,403,573		41,012,403
Goldman Sachs Group Inc. (The)	391,582		40,861,582
Wyeth	1,079,024		40,517,351
FleetBoston Financial Corp.	866,803		38,919,455
ConocoPhillips	554,304		38,695,962
Bristol-Myers Squibb Co.	1,572,635		38,104,946
eBay Inc.1	523,355		36,284,202
United Technologies Corp.	417,768		36,053,378
Lowe’s Companies Inc.	637,070		35,758,739
Du Pont (E.I.) de Nemours and Co.	808,402		34,130,732
Anheuser-Busch Companies Inc.	660,077		33,663,927
Motorola Inc.	1,896,280		33,374,528
Target Corp.	738,417		33,258,302
Freddie Mac	557,764		32,941,542
UnitedHealth Group Inc.	506,990		32,670,436
Gillette Co. (The)	815,809		31,898,132
Washington Mutual Inc.	728,588		31,117,993
Schlumberger Ltd.	476,890		30,449,427
Dow Chemical Co. (The)	754,928		30,408,500
First Data Corp.	719,017		30,313,757
AT&T Wireless Services Inc.1	2,207,083		30,038,400
McDonald’s Corp.	1,022,160		29,203,111
Applied Materials Inc.1	1,362,201		29,123,857
MBNA Corp.	1,035,041		28,598,183
Boston Scientific Corp.1	663,605		28,123,580
Boeing Co. (The)	682,463		28,028,755
Walgreen Co.	830,273		27,357,495
EMC Corp.1	1,959,166		26,664,249
Yahoo! Inc.1	538,836		26,182,041
Allstate Corp. (The)	569,949		25,909,882
Kimberly-Clark Corp.	406,292		25,637,025
Fifth Third Bancorp	457,637		25,339,361
Alcoa Inc.	704,995		24,456,277
Cardinal Health Inc.	352,377		24,278,775

12 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® S&P 500 INDEX FUND

March 31, 2004

Security	Shares	Value
Colgate-Palmolive Co.	431,442	$	23,772,454
Honeywell International Inc.	695,654		23,547,888
Carnival Corp.	510,321		22,918,516
Caterpillar Inc.	281,272		22,240,177
Nextel Communications Inc. Class A1	890,652		22,025,824
MetLife Inc.	615,749		21,969,924
General Motors Corp.	455,218		21,440,768
Forest Laboratories Inc.1	297,918		21,336,887
Clear Channel Communications Inc.	498,611		21,116,176
Emerson Electric Co.	341,631		20,470,530
Sysco Corp.	522,214		20,392,457
Ford Motor Company	1,483,388		20,129,575
Automatic Data Processing Inc.	477,816		20,068,272
Cendant Corp.	816,174		19,906,484
Marsh & McLennan Companies Inc.	429,488		19,885,294
Illinois Tool Works Inc.	249,569		19,773,352
Bank of New York Co. Inc. (The)	626,797		19,744,105
Prudential Financial Inc.	437,790		19,604,236
Gannett Co. Inc.	219,552		19,351,313
Schering-Plough Corp.	1,191,630		19,328,239
Lehman Brothers Holdings Inc.	224,998		18,645,584
Exelon Corp.	267,173		18,400,205
FedEx Corp.	241,666		18,163,617
Southern Company	593,039		18,087,690
National City Corp.	490,815		17,463,198
Dominion Resources Inc.	262,738		16,894,053
AFLAC Inc.	415,344		16,671,908
Lockheed Martin Corp.	365,166		16,666,176
Duke Energy Corp.	734,999		16,610,977
Nike Inc. Class B	213,101		16,594,175
International Paper Co.	389,120		16,444,211
Newmont Mining Corp.	349,919		16,316,723
HCA Inc.	401,301		16,300,847
Guidant Corp.	252,267		15,986,160
SunTrust Banks Inc.	229,088		15,969,724
Gap Inc. (The)	725,501		15,902,982
BB&T Corp.	442,685		15,626,781
Progressive Corp. (The)	175,950		15,413,220
SLM Corp.	365,096		15,279,268
Baxter International Inc.	494,250		15,267,382
Hartford Financial Services Group Inc.	236,197		15,045,749
Northrop Grumman Corp.	151,298		14,890,749
Biogen Idec Inc.1	265,298		14,750,569
Analog Devices Inc.	303,018		14,547,894
Occidental Petroleum Corp.	314,736		14,493,593
Avon Products Inc.	190,630		14,463,098
Zimmer Holdings Inc.1	195,837		14,448,854
General Dynamics Corp.	160,504		14,337,822
Stryker Corp.	161,551		14,302,110
Countrywide Financial Corp.	149,100		14,298,690
WellPoint Health Networks Inc.1	125,713		14,296,082
State Street Corp.	272,465		14,203,600
General Mills Inc.	304,169		14,198,609
Lucent Technologies Inc.1	3,452,773		14,190,897
Capital One Financial Corp.	187,001		14,105,485
Waste Management Inc.	467,139		14,098,255
Travelers Property Casualty Corp. Class B	813,717		14,052,893
Sara Lee Corp.	640,709		14,005,899
Costco Wholesale Corp.1	370,950		13,932,882
Golden West Financial Corp.	123,028		13,772,985
Deere & Co.	197,336		13,677,358
Best Buy Co. Inc.	263,834		13,645,494
Sprint Corp. (FON Group)	731,979		13,490,373
Tribune Co.	267,360		13,485,638
Kohls Corp.1	275,341		13,307,231
Kellogg Co.	334,210		13,114,400
Electronic Arts Inc.1	242,924		13,108,179
Harley-Davidson Inc.	245,331		13,085,956
Schwab (Charles) Corp. (The)	1,098,468		12,753,213
Computer Associates International Inc.	472,153		12,682,030
International Game Technology Inc.	280,824		12,625,847
Alltel Corp.	252,697		12,607,053
AT&T Corp.	643,569		12,594,645
Union Pacific Corp.	209,758		12,547,724
Maxim Integrated Products Inc.	265,603		12,507,245
PNC Financial Services Group	224,515		12,442,621
Omnicom Group Inc.	153,850		12,346,463

SCHEDULES OF INVESTMENTS 13

Schedule of Investments (Continued)

iSHARES^® S&P 500 INDEX FUND

March 31, 2004

Security	Shares	Value
Apollo Group Inc. Class A1	142,614	$	12,280,492
Corning Inc.1	1,091,825		12,206,604
Agilent Technologies Inc.1	385,019		12,178,151
Starbucks Corp.1	320,907		12,114,239
Caremark Rx Inc.1	361,597		12,023,100
McGraw-Hill Companies Inc. (The)	154,972		11,799,568
ConAgra Foods Inc.	434,727		11,711,545
Symantec Corp.1	252,012		11,668,156
Danaher Corp.	124,885		11,660,512
Weyerhaeuser Co.	177,985		11,658,018
CVS Corp.	322,047		11,368,259
Apache Corp.	262,389		11,327,333
Franklin Resources Inc.	201,943		11,244,186
Masco Corp.	366,330		11,151,085
Aetna Inc.	124,136		11,137,482
Sun Microsystems Inc.1	2,663,347		11,079,524
Entergy Corp.	185,250		11,022,375
Devon Energy Corp.	188,282		10,948,598
Paychex Inc.	306,628		10,915,957
Mellon Financial Corp.	348,325		10,899,089
Halliburton Co.	354,643		10,777,601
Wrigley (William Jr.) Co.	182,053		10,762,973
Heinz (H.J.) Co.	286,102		10,668,744
Anadarko Petroleum Corp.	204,608		10,610,971
Xilinx Inc.1	279,178		10,608,764
Chubb Corp.	152,027		10,571,958
Raytheon Co.	336,978		10,560,891
American Electric Power Co. Inc.	319,803		10,527,915
FirstEnergy Corp.	267,032		10,435,611
KeyCorp	339,336		10,278,487
Staples Inc.1	403,781		10,252,000
Hancock (John) Financial Services Inc.	234,214		10,232,810
Burlington Resources Inc.	160,157		10,190,790
Anthem Inc.1	111,952		10,147,329
St. Jude Medical Inc.1	140,240		10,111,304
Bed Bath & Beyond Inc.1	241,712		10,093,893
Kroger Co.1	605,897		10,082,126
FPL Group Inc.	149,937		10,023,288
TJX Companies Inc.	407,432		10,006,530
Baker Hughes Inc.	272,439		9,938,575
Becton, Dickinson & Co.	204,581		9,918,087
PG&E Corp.1	339,071		9,822,887
Praxair Inc.	263,244		9,771,617
ACE Ltd.	225,927		9,638,046
Broadcom Corp. Class A1	245,157		9,602,800
Ingersoll-Rand Co. Class A	141,877		9,597,979
Lexmark International Inc.1	104,005		9,568,460
Burlington Northern Santa Fe Corp.	301,789		9,506,354
Xerox Corp.1	645,889		9,410,603
Linear Technology Corp.	252,795		9,358,471
Equity Office Properties Trust	323,633		9,349,757
Progress Energy Inc.	198,383		9,339,872
Marathon Oil Corp.	276,835		9,321,034
Veritas Software Corp.1	346,137		9,314,547
Principal Financial Group Inc.	259,666		9,251,900
Air Products & Chemicals Inc.	183,976		9,220,877
Southwest Airlines Co.	642,372		9,128,106
Campbell Soup Co.	334,198		9,113,579
Simon Property Group Inc.	154,857		9,049,843
Fortune Brands Inc.	118,073		9,047,934
Yum! Brands Inc.1	238,115		9,045,989
Public Service Enterprise Group Inc.	191,941		9,017,388
Johnson Controls Inc.	152,435		9,016,530
Coca-Cola Enterprises Inc.	371,266		8,973,499
Allergan Inc.	106,326		8,948,396
Loews Corp.	150,727		8,901,937
SouthTrust Corp.	267,388		8,866,586
Archer-Daniels-Midland Co.	525,386		8,863,262
Hershey Foods Corp.	105,326		8,726,259
M&T Bank Corp.	97,062		8,721,021
Univision Communications Inc. Class A1	261,041		8,616,963
Moody’s Corp.	120,904		8,560,003
Genzyme Corp.1	181,424		8,534,185
XL Capital Ltd. Class A	111,105		8,448,424
Northern Trust Corp.	179,164		8,347,251
Clorox Co.	170,099		8,319,542
Micron Technology Inc.1	493,158		8,240,670
May Department Stores Co. (The)	234,622		8,113,229
Consolidated Edison Inc.	183,711		8,101,655

14 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® S&P 500 INDEX FUND

March 31, 2004

Security	Shares	Value
PPG Industries Inc.	138,680	$	8,085,044
Apple Computer Inc.1	298,663		8,078,834
Pitney Bowes Inc.	189,060		8,055,847
KLA-Tencor Corp.1	158,824		7,996,788
Biomet Inc.	208,022		7,979,724
PACCAR Inc.	141,655		7,966,677
Marriott International Inc. Class A	186,187		7,922,257
Federated Department Stores Inc.	146,312		7,908,164
Monsanto Co.	214,452		7,863,955
Unocal Corp.	209,581		7,813,180
Sears, Roebuck and Co.	181,486		7,796,639
Comerica Inc.	141,923		7,709,257
Sprint Corp. (PCS Group)1	837,663		7,706,500
Penney (J.C.) Co. Inc. (Holding Co.)	220,960		7,684,989
Adobe Systems Inc.	192,309		7,582,744
Limited Brands Inc.	377,730		7,554,600
Electronic Data Systems Corp.	388,763		7,522,564
TXU Corp.	262,124		7,512,474
Medco Health Solutions Inc.1	219,488		7,462,592
Bear Stearns Companies Inc. (The)	84,481		7,407,294
St. Paul Companies Inc.	184,512		7,382,325
Safeway Inc.1	357,943		7,366,467
Block (H & R) Inc.	144,272		7,362,200
MBIA Inc.	116,635		7,313,015
Transocean Inc.1	260,033		7,252,320
Intuit Inc.1	160,625		7,208,850
Rohm & Haas Co.	180,182		7,178,451
McKesson Corp.	235,502		7,086,255
AON Corp.	253,778		7,082,944
Norfolk Southern Corp.	316,688		6,995,638
Quest Diagnostics Inc.	83,834		6,943,970
Marshall & Ilsley Corp.	183,234		6,928,078
Georgia-Pacific Corp.	205,285		6,916,052
Eaton Corp.	122,994		6,911,033
Lincoln National Corp.	144,015		6,814,790
Ameren Corp.	147,810		6,812,563
CIGNA Corp.	114,179		6,738,845
AmSouth Bancorp	285,659		6,715,843
Equity Residential	224,935		6,714,310
American Standard Companies Inc.1	58,811		6,689,751
Chiron Corp.1	151,740		6,678,077
Starwood Hotels & Resorts Worldwide Inc.	164,504		6,662,412
Albertson’s Inc.	298,358		6,608,630
PPL Corp.	144,408		6,585,005
Regions Financial Corp.	180,164		6,579,589
Mattel Inc.	350,544		6,464,031
National Semiconductor Corp.1	144,996		6,442,172
Edison International	263,609		6,403,063
Charter One Financial Inc.	180,828		6,394,078
Ambac Financial Group Inc.	86,460		6,379,019
SunGard Data Systems Inc.1	232,446		6,369,020
Dover Corp.	164,212		6,366,499
Altera Corp.1	307,709		6,292,649
Pepsi Bottling Group Inc.	211,452		6,290,697
Jefferson-Pilot Corp.	114,346		6,290,173
Kinder Morgan Inc.	99,703		6,283,283
Qwest Communications International Inc.1	1,428,847		6,158,331
Computer Sciences Corp.1	152,336		6,143,711
AutoZone Inc.1	71,062		6,109,200
Phelps Dodge Corp.1	74,773		6,105,963
Eastman Kodak Co.	233,114		6,100,593
Cintas Corp.	139,461		6,065,159
Synovus Financial Corp.	246,124		6,017,732
Network Appliance Inc.1	279,173		5,988,261
Ecolab Inc.	208,082		5,936,579
Textron Inc.	110,991		5,899,172
Cinergy Corp.	144,053		5,890,327
Sempra Energy	184,898		5,879,756
Xcel Energy Inc.	324,909		5,786,629
ITT Industries Inc.	74,987		5,723,758
Cincinnati Financial Corp.	130,602		5,674,657
Fiserv Inc.1	158,394		5,665,753
DTE Energy Co.	136,551		5,619,074
Pulte Homes Inc.	100,997		5,615,433
BJ Services Co.1	129,383		5,598,402
Avery Dennison Corp.	89,887		5,591,870
PeopleSoft Inc.1	296,400		5,480,436
Nabors Industries Ltd.1	119,430		5,463,923
T. Rowe Price Group Inc.	101,339		5,455,078

SCHEDULES OF INVESTMENTS 15

Schedule of Investments (Continued)

iSHARES^® S&P 500 INDEX FUND

March 31, 2004

Security	Shares	Value
Freeport-McMoRan Copper & Gold Inc.	139,380	$	5,448,364
Parker Hannifin Corp.	96,281		5,439,877
Avaya Inc.1	341,793		5,427,673
Constellation Energy Group Inc.	135,744		5,422,973
Centex Corp.	100,088		5,410,757
New York Times Co. Class A	120,690		5,334,498
Dollar General Corp.	274,862		5,277,350
CSX Corp.	173,936		5,268,521
Donnelley (R.R.) & Sons Co.	173,258		5,241,055
ProLogis	146,061		5,239,208
North Fork Bancorp Inc.	123,736		5,236,508
Rockwell Automation Inc.	150,851		5,230,004
Interpublic Group of Companies Inc.1	338,634		5,208,191
Newell Rubbermaid Inc.	223,666		5,189,051
MGIC Investment Corp.	80,138		5,147,264
Family Dollar Stores Inc.	139,954		5,031,346
AmerisourceBergen Corp.	91,531		5,004,915
Hilton Hotels Corp.	306,818		4,985,793
Harrah’s Entertainment Inc.	90,133		4,947,400
KeySpan Corp.	128,844		4,924,418
Torchmark Corp.	91,523		4,923,022
First Tennessee National Corp.	102,010		4,865,877
UST Inc.	134,638		4,860,432
SAFECO Corp.	112,312		4,848,509
Plum Creek Timber Co. Inc.	148,336		4,817,953
Jabil Circuit Inc.1	163,035		4,798,120
Amerada Hess Corp.	72,792		4,751,862
JDS Uniphase Corp.1	1,164,046		4,737,667
Knight Ridder Inc.	64,610		4,732,683
Office Depot Inc.1	251,087		4,725,457
Molex Inc.	155,282		4,719,020
Brown-Forman Corp. Class B	98,918		4,714,432
Express Scripts Inc.1	63,170		4,711,850
Siebel Systems Inc.1	404,222		4,652,595
Sanmina-SCI Corp.1	422,171		4,648,103
MedImmune Inc.1	200,458		4,626,571
Advanced Micro Devices Inc.1	284,519		4,617,743
Genuine Parts Co.	141,020		4,614,174
MeadWestvaco Corp.	162,874		4,607,705
Union Planters Corp.	153,806		4,591,109
Sherwin-Williams Co. (The)	119,156		4,579,165
Delphi Corp.	457,093		4,552,646
Rockwell Collins Inc.	143,608		4,539,449
Tiffany & Co.	118,847		4,536,390
NiSource Inc.	213,034		4,526,973
Health Management Associates Inc. Class A	195,030		4,526,646
IMS Health Inc.	194,446		4,522,814
Nordstrom Inc.	112,324		4,481,728
RadioShack Corp.	133,175		4,416,083
AES Corp. (The)1	507,106		4,325,614
Cooper Industries Ltd.	74,983		4,287,528
EOG Resources Inc.	93,099		4,272,313
Kerr-McGee Corp.	82,282		4,237,523
Tenet Healthcare Corp.1	378,703		4,226,325
Zions Bancorporation	73,317		4,193,732
R.J. Reynolds Tobacco Holdings Inc.	69,175		4,185,088
Noble Corp.1	108,278		4,160,041
Bard (C.R.) Inc.	42,204		4,120,799
Huntington Bancshares Inc.	185,277		4,111,297
VF Corp.	87,355		4,079,479
Waters Corp.1	99,074		4,046,182
Williams Companies Inc.	420,853		4,027,563
Scientific-Atlanta Inc.	124,139		4,014,655
Sunoco Inc.	63,075		3,934,619
Vulcan Materials Co.	82,822		3,929,076
Whirlpool Corp.	57,014		3,926,554
Novellus Systems Inc.1	123,189		3,916,178
Nucor Corp.	63,504		3,904,226
Unisys Corp.1	268,854		3,839,235
AutoNation Inc.1	223,831		3,816,319
Wendy’s International Inc.	93,278		3,795,482
Watson Pharmaceuticals Inc.1	88,355		3,780,710
Solectron Corp.1	681,594		3,769,215
Thermo Electron Corp.1	132,692		3,752,530
American Power Conversion Corp.	162,061		3,729,024
Teradyne Inc.1	156,236		3,723,104
McCormick & Co. Inc.	110,982		3,720,117
Jones Apparel Group Inc.	102,825		3,717,124
Leggett & Platt Inc.	156,581		3,712,536

16 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® S&P 500 INDEX FUND

March 31, 2004

Security	Shares	Value
El Paso Corp.	512,949	$	3,647,067
BMC Software Inc.1	183,382		3,585,118
Black & Decker Corp.	62,903		3,581,697
Grainger (W.W.) Inc.	74,230		3,563,040
UNUMProvident Corp.	242,538		3,548,331
NVIDIA Corp.1	132,962		3,522,163
Allied Waste Industries Inc.1	262,330		3,491,612
Novell Inc.1	305,430		3,475,793
Sealed Air Corp.1	69,347		3,448,626
NCR Corp.1	77,171		3,400,154
United States Steel Corp.	90,500		3,372,935
SUPERVALU Inc.	109,363		3,339,946
Darden Restaurants Inc.	133,661		3,313,456
Robert Half International Inc.1	140,115		3,309,516
Mercury Interactive Corp.1	73,758		3,304,358
Applera Corp. – Applied Biosystems Group	166,706		3,297,445
King Pharmaceuticals Inc.1	195,500		3,292,220
Liz Claiborne Inc.	89,117		3,269,703
CenturyTel Inc.	117,513		3,230,432
Janus Capital Group Inc.	197,120		3,228,826
Dow Jones & Co. Inc.	66,638		3,192,627
Alberto-Culver Co.	72,373		3,175,004
Sigma-Aldrich Corp.	56,594		3,131,912
Ball Corp.	45,621		3,092,191
Providian Financial Corp.1	234,920		3,077,452
Hasbro Inc.	141,154		3,070,100
Brunswick Corp.	74,928		3,059,310
KB Home	37,837		3,057,230
Engelhard Corp.	102,187		3,054,369
Citizens Communications Co.1	230,028		2,976,562
Pinnacle West Capital Corp.	74,943		2,949,007
Tellabs Inc.1	340,902		2,941,984
Toys R Us Inc.1	172,987		2,906,182
Equifax Inc.	112,246		2,898,192
Citrix Systems Inc.1	134,026		2,897,642
LSI Logic Corp.1	308,408		2,880,531
Comverse Technology Inc.1	158,010		2,866,301
Autodesk Inc.	90,327		2,856,140
CenterPoint Energy Inc.	247,943		2,833,988
Stanley Works (The)	66,175		2,824,349
Pactiv Corp.1	126,799		2,821,278
Temple-Inland Inc.	44,507		2,819,073
Sabre Holdings Corp.	113,040		2,804,522
Federated Investors Inc. Class B	87,774		2,758,737
Eastman Chemical Co.	63,120		2,693,962
International Flavors & Fragrances Inc.	75,533		2,681,422
Goodrich (B.F.) Co.	95,145		2,670,720
Ashland Inc.	56,268		2,615,899
Fluor Corp.	67,305		2,604,030
Symbol Technologies Inc.	186,726		2,576,819
Bausch & Lomb Inc.	42,796		2,566,476
Manor Care Inc.	72,027		2,541,833
Navistar International Corp.1	55,327		2,536,743
QLogic Corp.1	76,392		2,521,700
Humana Inc.1	131,788		2,506,608
Boise Cascade Corp.	70,986		2,459,665
Dana Corp.	120,273		2,388,622
PMC-Sierra Inc.1	139,985		2,375,545
Monster Worldwide Inc.1	90,645		2,374,899
E*TRADE Financial Corp.1	176,899		2,361,602
Apartment Investment & Management Co. Class A	75,496		2,347,171
Compuware Corp.1	314,411		2,342,362
Pall Corp.	102,203		2,318,986
Bemis Co.	86,724		2,254,824
TECO Energy Inc.	153,970		2,252,581
Tektronix Inc.	68,628		2,244,822
Louisiana-Pacific Corp.	85,412		2,203,630
Andrew Corp.1	125,808		2,201,640
PerkinElmer Inc.	102,358		2,117,787
Coors (Adolf) Company Class B	29,748		2,065,999
Meredith Corp.	40,545		2,049,955
Ryder System Inc.	52,500		2,033,325
Cummins Inc.	34,626		2,023,890
Millipore Corp.1	39,235		2,015,894
Reebok International Ltd.	48,432		2,002,663
Maytag Corp.	63,364		2,000,401
Circuit City Stores Inc.	171,238		1,934,989
CIENA Corp.1	382,488		1,900,965
ADC Telecommunications Inc.1	646,889		1,875,978

SCHEDULES OF INVESTMENTS 17

Schedule of Investments (Continued)

iSHARES^® S&P 500 INDEX FUND

March 31, 2004

Security	Shares		Value
Rowan Companies Inc.1		85,334	$	1,799,694
Convergys Corp.1		115,990		1,763,048
Deluxe Corp.		41,301		1,656,170
Crane Co.		48,387		1,596,771
Calpine Corp.1		338,726		1,581,850
Gateway Inc.1		293,331		1,548,788
Snap-On Inc.		47,795		1,545,690
Applied Micro Circuits Corp.1		251,352		1,445,274
Allegheny Energy Inc.1		102,240		1,401,710
Big Lots Inc.1		94,560		1,371,120
Peoples Energy Corp.		30,235		1,349,993
Worthington Industries Inc.		69,488		1,332,085
Dillards Inc. Class A		68,918		1,320,469
Nicor Inc.		36,032		1,269,407
Goodyear Tire & Rubber Co. (The)1		144,129		1,230,862
Dynegy Inc. Class A1		309,132		1,224,163
American Greetings Corp. Class A1		53,056		1,208,085
Cooper Tire & Rubber Co.		59,828		1,205,534
CMS Energy Corp.1		133,256		1,192,641
Thomas & Betts Corp.		47,809		1,043,192
Visteon Corp.		106,675		1,020,880
Hercules Inc.1		88,780		1,019,194
Great Lakes Chemical Corp.		40,708		970,886
Parametric Technology Corp.1		212,289		959,546
Winn-Dixie Stores Inc.		114,469		869,964
Allegheny Technologies Inc.		65,903		797,426
Delta Air Lines Inc.		100,549		796,348
Power-One Inc.1		68,594		758,650
TOTAL COMMON STOCKS (Cost: $8,566,909,427)				8,479,494,302
SHORT-TERM INVESTMENTS – 6.40%
MONEY MARKET FUNDS – 2.61%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares2,3		161,144,010		161,144,010
Barclays Global Investors Funds Prime Money Market Fund, Institutional Shares2,3		47,668,130		47,668,130
BlackRock Temp Cash Money Market Fund2		2,231,244		2,231,244
Short-Term Investment Co. - Liquid Assets Money Market Portfolio2		11,111,278	$	11,111,278
				222,154,662
Security	Shares or Principal		Value
FLOATING RATE NOTES – 1.24%
Beta Finance Inc.
1.05%, 05/20/042,4	$	2,166,733		2,166,690
1.05%, 09/15/042,4		4,333,466		4,333,269
1.06%, 10/12/042,4		2,166,733		2,166,619
1.14%, 08/23/042,4		2,166,733		2,167,463
CC USA Inc.
1.05%, 04/19/042,4		1,906,725		1,906,721
1.06%, 05/24/042,4		4,333,466		4,333,404
1.09%, 07/15/042,4		2,166,733		2,166,957
1.51%, 02/15/052,4		2,816,753		2,820,672
Dorada Finance Inc.
1.04%, 07/01/042		1,516,713		1,512,726
1.05%, 05/20/042,4		4,333,466		4,333,380
1.24%, 08/09/042		1,083,367		1,083,309
1.48%, 01/18/052,4		3,250,100		3,249,971
Five Finance Inc.
1.06%, 04/15/042,4		2,166,733		2,166,733
HBOS Treasury Services PLC
1.10%, 04/22/052		4,333,466		4,333,466
Holmes Financing PLC
1.05%, 04/15/042		433,347		433,347
K2 USA LLC
1.05%, 08/16/042,4		1,083,367		1,083,306
1.05%, 09/27/042,4		4,680,144		4,679,801
1.06%, 04/13/042		2,166,733		2,166,730
1.06%, 05/17/042		2,166,733		2,166,720
1.46%, 01/12/052,4		2,166,733		2,166,564
Links Finance LLC
1.05%, 06/28/042		2,166,733		2,166,629
1.06%, 05/04/042		2,166,733		2,166,724
1.06%, 07/20/042		1,733,387		1,733,282
Nationwide Building Society
1.09%, 07/23/042,4		3,250,100		3,250,100
1.11%, 12/28/042,4		4,333,466		4,333,466
Northern Rock PLC
1.11%, 01/13/052,4		4,116,793		4,116,793

18 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® S&P 500 INDEX FUND

March 31, 2004

Security	Principal		Value
Permanent Financing PLC
1.04%, 03/10/052	$	4,333,466	$	4,333,466
1.05%, 12/10/042		2,166,733		2,166,733
Sigma Finance Inc.
1.05%, 07/01/042		2,166,733		2,166,599
1.06%, 07/20/042		2,166,733		2,166,603
1.09%, 10/07/042		4,333,466		4,333,019
1.24%, 08/06/042		1,083,367		1,083,329
Tango Finance Corp.
1.05%, 01/18/052,4		1,906,725		1,906,571
1.06%, 07/15/042,4		1,300,040		1,299,916
1.07%, 02/25/052,4		2,426,741		2,426,304
1.10%, 07/06/042,4		1,300,040		1,300,005
WhistleJacket Capital LLC
1.05%, 09/15/042,4		2,166,733		2,166,535
1.32%, 02/04/052,4		1,083,367		1,083,184
White Pine Finance LLC
1.04%, 08/26/042,4		2,166,733		2,166,599
1.05%, 11/15/042,4		2,600,080		2,600,080
1.06%, 04/20/042,4		2,166,733		2,166,733
1.06%, 07/06/042,4		2,600,080		2,600,014
				105,170,532
COMMERCIAL PAPER – 1.14%
Alpine Securitization Corp.
1.03%, 04/14/042		2,036,729		2,035,972
1.03%, 04/20/042		2,166,733		2,165,555
1.03%, 04/23/042		2,556,745		2,555,136
1.03%, 04/26/042		2,166,733		2,165,183
Amsterdam Funding Corp.
1.03%, 05/05/042		1,755,054		1,753,347
Barton Capital Corp.
1.03%, 04/02/042		2,258,126		2,258,061
Blue Ridge Asset Funding Corp.
1.02%, 04/23/042		1,300,040		1,299,230
1.03%, 05/21/042		2,166,733		2,163,634
Corporate Asset Funding
1.05%, 05/21/042		2,253,403		2,250,132
Corporate Receivables Corp.
1.03%, 04/07/042		2,166,733		2,166,361
1.04%, 06/03/042		4,333,466		4,325,579
Delaware Funding Corp.
1.03%, 04/02/042		2,166,733		2,166,671
1.03%, 05/05/042		3,253,697		3,250,531
1.03%, 05/21/042		1,083,367		1,081,817
Edison Asset Securitization
1.07%, 09/21/042		2,166,733		2,155,592
Eureka Securitization Inc.
1.03%, 05/25/042		866,693		865,354
1.04%, 04/14/042		2,600,080		2,599,103
Falcon Asset Securitization
1.03%, 04/15/042		2,604,110		2,603,067
1.03%, 04/22/042		2,556,745		2,555,209
1.03%, 04/30/042		2,166,733		2,164,935
Galaxy Funding Inc.
1.05%, 05/17/042		2,166,733		2,163,841
Gemini Securitization Corp.
1.03%, 04/20/042		1,300,907		1,300,199
1.03%, 04/23/042		2,504,180		2,502,604
1.03%, 04/30/042		1,518,577		1,517,317
1.03%, 05/24/042		1,083,367		1,081,724
1.04%, 04/19/042		1,083,367		1,082,803
GIRO Funding US Corp.
1.05%, 05/19/042		1,083,367		1,081,850
Jupiter Securitization Corp.
1.03%, 04/16/042		4,333,466		4,331,607
1.03%, 04/19/042		5,850,180		5,847,167
1.03%, 04/28/042		2,600,080		2,598,071
1.03%, 04/30/042		3,691,030		3,687,967
Liberty Street Funding Corp.
1.04%, 04/08/042		1,518,273		1,517,966
1.05%, 04/05/042		1,755,054		1,754,849
Polonius Inc.
1.04%, 05/21/042		2,506,910		2,503,289
Preferred Receivables Funding Corp.
1.03%, 04/19/042		4,550,140		4,547,796
1.04%, 04/23/042		4,983,486		4,980,319
1.04%, 05/20/042		1,083,367		1,081,833
Receivables Capital Corp.
1.04%, 04/14/042		1,906,725		1,906,009

SCHEDULES OF INVESTMENTS 19

Schedule of Investments (Continued)

iSHARES^® S&P 500 INDEX FUND

March 31, 2004

Security	Principal		Value
Scaldis Capital LLC
1.05%, 06/30/042	$	1,551,381	$	1,547,309
Thames Asset Global Securitization No. 1 Inc.
1.03%, 04/19/042		2,166,733		2,165,617
Thunder Bay Funding Inc.
1.03%, 04/19/042		1,378,259		1,377,549
1.04%, 04/29/042		1,951,793		1,950,214
				97,108,369
TIME DEPOSITS – 0.98%
Abbey National Treasury Services PLC
1.08%, 04/01/042		15,167,132		15,167,132
1.33%, 02/10/052		2,166,733		2,166,453
1.39%, 02/02/052		2,166,733		2,166,460
1.40%, 10/25/042		4,333,466		4,333,098
Bank of New York
1.39%, 11/01/042		4,333,466		4,333,212
Bank of Nova Scotia
1.24%, 10/07/042		3,250,100		3,249,931
1.42%, 10/29/042		3,250,100		3,250,241
Canadian Imperial Bank of Commerce
1.24%, 10/07/042		3,250,100		3,249,847
1.38%, 11/22/042		1,083,367		1,083,419
1.40%, 10/29/042		4,333,466		4,333,404
National City Bank (Cleveland, Ohio)
1.02%, 04/01/042		6,500,200		6,500,200
Toronto-Dominion Bank
1.04%, 06/22/042		1,083,367		1,083,367
1.22%, 03/23/052		7,583,566		7,582,270
1.34%, 02/10/052		1,733,387		1,733,162
1.41%, 11/01/042		3,250,100		3,249,909
UBS Finance (Delaware)
1.06%, 04/01/042		8,666,933		8,666,933
1.10%, 09/08/042		4,333,466		4,312,281
1.11%, 12/17/042		6,500,200		6,448,090
				82,909,409
REPURCHASE AGREEMENTS – 0.31%
Bank of America, NA
1.06%, 04/01/042		8,666,933		8,666,933
Goldman, Sachs & Co.
1.08%, 04/01/042		17,333,865		17,333,865
				26,000,798
U.S. GOVERNMENT AGENCY NOTES – 0.12%
Federal Home Loan Mortgage Corporation
1.15%, 05/12/042		3,250,100		3,245,843
1.28%, 08/19/042		1,733,387		1,724,758
Federal National Mortgage Association 1.28%, 08/20/042		5,633,506		5,605,263
				10,575,864
TOTAL SHORT-TERM INVESTMENTS (Cost: $543,919,634)				543,919,634
TOTAL INVESTMENTS IN SECURITIES – 106.26% (Cost: $9,110,829,061)				9,023,413,936
Other Assets, Less Liabilities – (6.26%)				(531,734,778	)
NET ASSETS – 100.00%			$	8,491,679,158

¹ Non-income earning securities.

² All or a portion of this security represents investments of securities lending collateral.

³ Issuer is an affiliate of the Fund’s investment advisor. See Note 2.

⁴ Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

See notes to financial statements.

20 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® S&P 500/BARRA GROWTH INDEX FUND

March 31, 2004

Security	Shares	Value
COMMON STOCKS – 99.88%
General Electric Co.	2,929,248	$	89,400,649
Microsoft Corp.	3,100,551		77,420,758
Pfizer Inc.	2,190,201		76,766,545
Wal-Mart Stores Inc.	1,243,101		74,200,699
Intel Corp.	1,862,476		50,659,347
Cisco Systems Inc.1	1,974,152		46,432,055
International Business Machines Corp.	488,147		44,831,420
Johnson & Johnson	852,496		43,238,597
Procter & Gamble Co.	371,235		38,935,127
Coca-Cola Co. (The)	702,397		35,330,569
Altria Group Inc.	587,908		32,011,591
Merck & Co. Inc.	638,944		28,234,935
PepsiCo Inc.	491,276		26,455,213
Dell Inc.1	735,498		24,727,443
United Parcel Service Inc. Class B	324,333		22,651,417
Lilly (Eli) & Co.	322,803		21,595,521
Amgen Inc.1	370,551		21,554,952
Fannie Mae	279,122		20,752,721
American Express Co.	369,504		19,158,782
Abbott Laboratories	449,164		18,460,640
3M Co.	225,109		18,429,674
Oracle Corp.1	1,501,711		18,035,549
Medtronic Inc.	348,230		16,627,983
QUALCOMM Inc.	231,288		15,362,149
Texas Instruments Inc.	497,672		14,541,976
Wyeth	382,597		14,366,517
Bristol-Myers Squibb Co.	557,636		13,511,520
eBay Inc.1	185,580		12,866,261
United Technologies Corp.	148,139		12,784,396
Lowe’s Companies Inc.	225,906		12,680,104
Du Pont (E.I.) de Nemours and Co.	286,664		12,102,954
Anheuser-Busch Companies Inc.	234,069		11,937,519
UnitedHealth Group Inc.	179,787		11,585,474
Gillette Co. (The)	289,298		11,311,552
Schlumberger Ltd.	169,107		10,797,482
Dow Chemical Co. (The)	267,654		10,781,103
First Data Corp.	254,981		10,749,999
Applied Materials Inc.1	482,955		10,325,578
Boston Scientific Corp.1	235,341		9,973,752
Boeing Co. (The)	242,035		9,940,377
Walgreen Co.	294,452		9,702,193
EMC Corp.1	694,549		9,452,812
Yahoo! Inc.1	190,994		9,280,398
Kimberly-Clark Corp.	143,943		9,082,803
Fifth Third Bancorp	162,133		8,977,304
Cardinal Health Inc.	124,911		8,606,368
Colgate-Palmolive Co.	152,857		8,422,421
Nextel Communications Inc. Class A1	315,556		7,803,700
Forest Laboratories Inc.1	105,599		7,563,000
Emerson Electric Co.	121,041		7,252,777
Sysco Corp.	185,024		7,225,187
Automatic Data Processing Inc.	169,296		7,110,432
Marsh & McLennan Companies Inc.	152,173		7,045,610
Nike Inc. Class B	75,615		5,888,140
Guidant Corp.	89,420		5,666,545
Gap Inc. (The)	257,078		5,635,150
SLM Corp.	129,373		5,414,260
Baxter International Inc.	175,138		5,410,013
Biogen Idec Inc.1	94,009		5,226,900
Analog Devices Inc.	107,409		5,156,706
Avon Products Inc.	67,551		5,125,094
Zimmer Holdings Inc.1	69,395		5,119,963
Stryker Corp.	57,245		5,067,900
Lucent Technologies Inc.1	1,224,156		5,031,281
Sara Lee Corp.	227,398		4,970,920
Best Buy Co. Inc.	93,205		4,820,563
Kohls Corp.1	97,570		4,715,558
Kellogg Co.	118,509		4,650,293
Harley-Davidson Inc.	86,939		4,637,326
Electronic Arts Inc.1	85,841		4,631,980
International Game Technology Inc.	99,694		4,482,242
Maxim Integrated Products Inc.	94,126		4,432,393
Omnicom Group Inc.	54,521		4,375,310
Apollo Group Inc. Class A1	50,541		4,352,086
Agilent Technologies Inc.1	136,447		4,315,819
Starbucks Corp.1	113,846		4,297,687
McGraw-Hill Companies Inc. (The)	54,921		4,181,685
Symantec Corp.1	89,446		4,141,350
Paychex Inc.	108,328		3,856,477

SCHEDULES OF INVESTMENTS 21

Schedule of Investments (Continued)

iSHARES^® S&P 500/BARRA GROWTH INDEX FUND

March 31, 2004

Security	Shares	Value
Wrigley (William Jr.) Co.	64,522	$	3,814,541
Heinz (H.J.) Co.	101,031		3,767,446
Xilinx Inc.1	99,087		3,765,306
Staples Inc.1	143,519		3,643,947
Bed Bath & Beyond Inc.1	85,538		3,572,067
St. Jude Medical Inc.1	49,504		3,569,238
TJX Companies Inc.	144,788		3,555,993
Praxair Inc.	93,303		3,463,407
Broadcom Corp. Class A1	86,892		3,403,560
Lexmark International Inc.1	36,957		3,400,044
Linear Technology Corp.	89,600		3,316,992
Veritas Software Corp.1	123,022		3,310,522
Campbell Soup Co.	117,944		3,216,333
Yum! Brands Inc.1	84,590		3,213,574
Allergan Inc.	37,620		3,166,099
Hershey Foods Corp.	37,435		3,101,490
Moody’s Corp.	42,693		3,022,664
Clorox Co.	60,295		2,949,028
Pitney Bowes Inc.	67,020		2,855,722
KLA-Tencor Corp.1	56,306		2,835,007
Biomet Inc.	73,396		2,815,471
Sprint Corp. (PCS Group)1	298,063		2,742,180
Adobe Systems Inc.	68,507		2,701,231
Block (H & R) Inc.	51,147		2,610,031
Intuit Inc.1	56,946		2,555,736
Chiron Corp.1	53,979		2,375,616
American Standard Companies Inc.1	20,720		2,356,900
National Semiconductor Corp.1	51,076		2,269,307
Altera Corp.1	108,653		2,221,954
Qwest Communications International Inc.1	506,646		2,183,644
AutoZone Inc.1	25,033		2,152,087
Cintas Corp.	49,192		2,139,360
Synovus Financial Corp.	86,949		2,125,903
Network Appliance Inc.1	98,991		2,123,357
Ecolab Inc.	73,784		2,105,058
Avery Dennison Corp.	31,740		1,974,545
T. Rowe Price Group Inc.	36,195		1,948,377
Avaya Inc.1	122,109		1,939,091
Freeport-McMoRan Copper & Gold Inc.	49,419		1,931,789
New York Times Co. Class A	42,972		1,899,362
Dollar General Corp.	96,983		1,862,074
North Fork Bancorp Inc.	43,676		1,848,368
Family Dollar Stores Inc.	49,372		1,774,923
UST Inc.	47,755		1,723,956
Knight Ridder Inc.	22,915		1,678,524
Brown-Forman Corp. Class B	34,853		1,661,094
Express Scripts Inc.1	22,243		1,659,105
Rockwell Collins Inc.	51,074		1,614,449
Delphi Corp.	161,448		1,608,022
Tiffany & Co.	42,009		1,603,484
IMS Health Inc.	68,774		1,599,683
RadioShack Corp.	47,354		1,570,259
AES Corp. (The)1	179,323		1,529,625
Bard (C.R.) Inc.	14,962		1,460,890
Waters Corp.1	35,066		1,432,095
Whirlpool Corp.	20,064		1,381,808
Unisys Corp.1	94,812		1,353,915
McCormick & Co. Inc.	39,381		1,320,051
Teradyne Inc.1	55,124		1,313,605
Black & Decker Corp.	22,439		1,277,677
Novell Inc.1	107,573		1,224,181
Sealed Air Corp.1	24,462		1,216,495
Robert Half International Inc.1	49,345		1,165,529
Mercury Interactive Corp.1	25,940		1,162,112
Dow Jones & Co. Inc.	23,524		1,127,035
Sigma-Aldrich Corp.	20,045		1,109,290
Ball Corp.	16,157		1,095,121
Equifax Inc.	40,208		1,038,171
Autodesk Inc.	32,476		1,026,891
Citrix Systems Inc.1	47,254		1,021,632
Federated Investors Inc. Class B	31,293		983,539
International Flavors & Fragrances Inc.	27,069		960,950
Navistar International Corp.1	19,682		902,420
QLogic Corp.1	27,183		897,311
Monster Worldwide Inc.1	32,274		845,579
PMC-Sierra Inc.1	49,409		838,471
Meredith Corp.	14,382		727,154
Millipore Corp.1	13,934		715,929
Maytag Corp.	22,430		708,115

22 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® S&P 500/BARRA GROWTH INDEX FUND

March 31, 2004

Security	Shares or Principal		Value
Deluxe Corp.		14,667	$	588,147
Hercules Inc.1		32,366		371,562
Parametric Technology Corp.1		76,610		346,277
TOTAL COMMON STOCKS (Cost: $1,372,194,828)				1,468,119,043
SHORT-TERM INVESTMENTS – 7.58%
MONEY MARKET FUNDS – 2.99%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares2,3		31,092,821		31,092,821
Barclays Global Investors Funds Prime Money Market Fund, Institutional Shares2,3		10,016,002		10,016,002
BlackRock Temp Cash Money Market Fund2		468,828		468,828
Short-Term Investment Co. - Liquid Assets Money Market Portfolio2		2,334,696		2,334,696
				43,912,347
FLOATING RATE NOTES – 1.50%
Beta Finance Inc.
1.05%, 05/20/042,4	$	455,273		455,264
1.05%, 09/15/042,4		910,546		910,504
1.06%, 10/12/042,4		455,273		455,249
1.14%, 08/23/042,4		455,273		455,427
CC USA Inc.
1.05%, 04/19/042,4		400,640		400,640
1.06%, 05/24/042,4		910,546		910,533
1.09%, 07/15/042,4		455,273		455,320
1.51%, 02/15/052,4		591,855		592,678
Dorada Finance Inc.
1.04%, 07/01/042		318,691		317,853
1.05%, 05/20/042,4		910,546		910,527
1.24%, 08/09/042		227,636		227,624
1.48%, 01/18/052,4		682,909		682,883
Five Finance Inc.
1.06%, 04/15/042,4		455,273		455,273
HBOS Treasury Services PLC
1.10%, 04/22/052		910,546		910,546
Security	Principal		Value
Holmes Financing PLC
1.05%, 04/15/042	$	91,055	$	91,055
K2 USA LLC
1.05%, 08/16/042,4		227,636		227,624
1.05%, 09/27/042,4		983,389		983,317
1.06%, 04/13/042		455,273		455,272
1.06%, 05/17/042		455,273		455,270
1.46%, 01/12/052,4		455,273		455,237
Links Finance LLC
1.05%, 06/28/042		455,273		455,251
1.06%, 05/04/042		455,273		455,271
1.06%, 07/20/042		364,218		364,197
Nationwide Building Society
1.09%, 07/23/042,4		682,909		682,909
1.11%, 12/28/042,4		910,546		910,546
Northern Rock PLC
1.11%, 01/13/052,4		865,018		865,018
Permanent Financing PLC
1.04%, 03/10/052		910,546		910,546
1.05%, 12/10/042		455,273		455,273
Sigma Finance Inc.
1.05%, 07/01/042		455,273		455,245
1.06%, 07/20/042		455,273		455,245
1.09%, 10/07/042		910,546		910,452
1.24%, 08/06/042		227,636		227,628
Tango Finance Corp.
1.05%, 01/18/052,4		400,640		400,608
1.06%, 07/15/042,4		273,164		273,138
1.07%, 02/25/052,4		509,906		509,814
1.10%, 07/06/042,4		273,164		273,156
WhistleJacket Capital LLC
1.05%, 09/15/042,4		455,273		455,231
1.32%, 02/04/052,4		227,636		227,598
White Pine Finance LLC
1.04%, 08/26/042,4		455,273		455,245
1.05%, 11/15/042,4		546,327		546,327
1.06%, 04/20/042,4		455,273		455,273
1.06%, 07/06/042,4		546,327		546,314
				22,098,381

SCHEDULES OF INVESTMENTS 23

Schedule of Investments (Continued)

iSHARES^® S&P 500/BARRA GROWTH INDEX FUND

March 31, 2004

Security	Principal		Value
COMMERCIAL PAPER – 1.39%
Alpine Securitization Corp.
1.03%, 04/14/042	$	427,956	$	427,797
1.03%, 04/20/042		455,273		455,025
1.03%, 04/23/042		537,222		536,884
1.03%, 04/26/042		455,273		454,947
Amsterdam Funding Corp.
1.03%, 05/05/042		368,771		368,412
Barton Capital Corp.
1.03%, 04/02/042		474,476		474,463
Blue Ridge Asset Funding Corp.
1.02%, 04/23/042		273,164		272,993
1.03%, 05/21/042		455,273		454,622
Corporate Asset Funding
1.05%, 05/21/042		473,484		472,797
Corporate Receivables Corp.
1.03%, 04/07/042		455,273		455,195
1.04%, 06/03/042		910,546		908,888
Delaware Funding Corp.
1.03%, 04/02/042		455,273		455,260
1.03%, 05/05/042		683,665		683,000
1.03%, 05/21/042		227,636		227,311
Edison Asset Securitization
1.07%, 09/21/042		455,273		452,932
Eureka Securitization Inc.
1.03%, 05/25/042		182,109		181,828
1.04%, 04/14/042		546,327		546,123
Falcon Asset Securitization
1.03%, 04/15/042		547,174		546,955
1.03%, 04/22/042		537,222		536,899
1.03%, 04/30/042		455,273		454,895
Galaxy Funding Inc.
1.05%, 05/17/042		455,273		454,665
Gemini Securitization Corp.
1.03%, 04/20/042		273,346		273,198
1.03%, 04/23/042		526,177		525,846
1.03%, 04/30/042		319,083		318,818
1.03%, 05/24/042		227,636		227,291
1.04%, 04/19/042		227,636		227,518
GIRO Funding US Corp.
1.05%, 05/19/042		227,636		227,318
Jupiter Securitization Corp.
1.03%, 04/16/042		910,546		910,155
1.03%, 04/19/042		1,229,237		1,228,604
1.03%, 04/28/042		546,327		545,905
1.03%, 04/30/042		775,557		774,914
Liberty Street Funding Corp.
1.04%, 04/08/042		319,019		318,954
1.05%, 04/05/042		368,771		368,728
Polonius Inc.
1.04%, 05/21/042		526,751		525,990
Preferred Receivables Funding Corp.
1.03%, 04/19/042		956,073		955,581
1.04%, 04/23/042		1,047,127		1,046,462
1.04%, 05/20/042		227,636		227,314
Receivables Capital Corp.
1.04%, 04/14/042		400,640		400,490
Scaldis Capital LLC
1.05%, 06/30/042		325,975		325,120
Thames Asset Global Securitization No. 1 Inc.
1.03%, 04/19/042		455,273		455,038
Thunder Bay Funding Inc.
1.03%, 04/19/042		289,599		289,450
1.04%, 04/29/042		410,110		409,778
				20,404,363
TIME DEPOSITS – 1.18%
Abbey National Treasury Services PLC
1.08%, 04/01/042		3,186,910		3,186,910
1.33%, 02/10/052		455,273		455,214
1.39%, 02/02/052		455,273		455,215
1.40%, 10/25/042		910,546		910,468
Bank of New York
1.39%, 11/01/042		910,546		910,492
Bank of Nova Scotia
1.24%, 10/07/042		682,909		682,874
1.42%, 10/29/042		682,909		682,939

24 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® S&P 500/BARRA GROWTH INDEX FUND

March 31, 2004

Security	Principal		Value
Canadian Imperial Bank of Commerce
1.24%, 10/07/042	$	682,909	$	682,856
1.38%, 11/22/042		227,636		227,648
1.40%, 10/29/042		910,546		910,532
National City Bank (Cleveland, Ohio)
1.02%, 04/01/042		1,365,818		1,365,818
Toronto-Dominion Bank
1.04%, 06/22/042		227,636		227,637
1.22%, 03/23/052		1,593,455		1,593,183
1.34%, 02/10/052		364,218		364,171
1.41%, 11/01/042		682,909		682,869
UBS Finance (Delaware)
1.06%, 04/01/042		1,821,091		1,821,091
1.10%, 09/08/042		910,546		906,094
1.11%, 12/17/042		1,365,818		1,354,869
				17,420,880
REPURCHASE AGREEMENTS – 0.37%
Bank of America, NA
1.06%, 04/01/042		1,821,091		1,821,091
Goldman, Sachs & Co.
1.08%, 04/01/042		3,642,183		3,642,183
				5,463,274
U.S. GOVERNMENT AGENCY NOTES – 0.15%
Federal Home Loan Mortgage Corporation
1.15%, 05/12/042		682,909		682,015
1.28%, 08/19/042		364,218		362,405
Federal National Mortgage Association
1.28%, 08/20/042		1,183,709		1,177,766
				2,222,186
TOTAL SHORT-TERM INVESTMENTS (Cost: $111,521,431)				111,521,431
TOTAL INVESTMENTS IN SECURITIES – 107.46% (Cost: $1,483,716,259)				1,579,640,474
Other Assets, Less Liabilities – (7.46%)				(109,719,236	)
NET ASSETS – 100.00%			$	1,469,921,238

¹ Non-income earning securities.

² All or a portion of this security represents investments of securities lending collateral.

³ Issuer is an affiliate of the Fund’s investment advisor. See Note 2.

⁴ Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 25

Schedule of Investments

iSHARES^® S&P 500/BARRA VALUE INDEX FUND

March 31, 2004

Security	Shares	Value
COMMON STOCKS – 99.92%
Exxon Mobil Corp.	2,324,714	$	96,684,855
Citigroup Inc.	1,826,026		94,405,544
American International Group Inc.	924,894		65,991,187
Bank of America Corp.	513,673		41,597,240
Verizon Communications Inc.	978,975		35,771,747
Wells Fargo & Company	599,827		33,992,196
ChevronTexaco Corp.	379,222		33,288,107
JP Morgan Chase & Co.	729,619		30,607,517
Home Depot Inc.	806,562		30,133,156
SBC Communications Inc.	1,172,562		28,774,671
Time Warner Inc.1	1,613,981		27,211,720
Hewlett-Packard Co.	1,081,460		24,700,546
Viacom Inc. Class B	620,098		24,314,043
Comcast Corp. Class A1	797,941		22,932,824
Morgan Stanley	388,861		22,281,735
Wachovia Corp.	466,111		21,907,217
Bank One Corp.	396,883		21,638,061
Merrill Lynch & Co. Inc.	343,961		20,486,317
Tyco International Ltd.	708,948		20,311,360
U.S. Bancorp	680,583		18,818,120
Walt Disney Co. (The)	725,848		18,138,942
BellSouth Corp.	649,250		17,977,733
Goldman Sachs Group Inc. (The)	171,328		17,878,077
FleetBoston Financial Corp.	379,255		17,028,550
ConocoPhillips	242,532		16,931,159
Motorola Inc.	829,715		14,602,984
Target Corp.	323,095		14,552,199
Freddie Mac	244,049		14,413,534
Washington Mutual Inc.	318,796		13,615,777
AT&T Wireless Services Inc.1	965,723		13,143,490
McDonald’s Corp.	447,260		12,778,218
MBNA Corp.	452,901		12,513,655
Allstate Corp. (The)	249,396		11,337,542
Alcoa Inc.	308,492		10,701,587
Honeywell International Inc.	304,413		10,304,380
Carnival Corp.	223,312		10,028,942
Caterpillar Inc.	123,083		9,732,173
MetLife Inc.	269,449		9,613,940
General Motors Corp.	199,206		9,382,603
Clear Channel Communications Inc.	218,197		9,240,643
Ford Motor Company	649,147		8,808,925
Cendant Corp.	357,170		8,711,376
Illinois Tool Works Inc.	109,215		8,653,104
Bank of New York Co. Inc. (The)	274,293		8,640,230
Prudential Financial Inc.	191,583		8,579,087
Gannett Co. Inc.	96,079		8,468,403
Schering-Plough Corp.	521,472		8,458,276
Lehman Brothers Holdings Inc.	98,274		8,143,966
Exelon Corp.	116,698		8,036,991
FedEx Corp.	105,762		7,949,072
Southern Company	259,529		7,915,635
National City Corp.	214,794		7,642,371
Dominion Resources Inc.	114,987		7,393,664
AFLAC Inc.	181,770		7,296,248
Lockheed Martin Corp.	159,811		7,293,774
Duke Energy Corp.	321,669		7,269,719
International Paper Co.	170,298		7,196,793
Newmont Mining Corp.	153,143		7,141,058
HCA Inc.	175,628		7,134,009
SunTrust Banks Inc.	100,016		6,972,115
BB&T Corp.	193,740		6,839,022
Progressive Corp. (The)	76,894		6,735,914
Hartford Financial Services Group Inc.	103,263		6,577,853
Northrop Grumman Corp.	66,148		6,510,286
Occidental Petroleum Corp.	137,571		6,335,145
General Dynamics Corp.	70,249		6,275,343
Countrywide Financial Corp.	65,258		6,258,242
WellPoint Health Networks Inc.1	54,971		6,251,302
General Mills Inc.	132,853		6,201,578
State Street Corp.	118,873		6,196,849
Capital One Financial Corp.	81,845		6,173,568
Waste Management Inc.	204,460		6,170,603
Travelers Property Casualty Corp. Class B	356,142		6,150,572
Costco Wholesale Corp.1	162,357		6,098,129
Golden West Financial Corp.	53,847		6,028,172
Deere & Co.	86,303		5,981,661
Sprint Corp. (FON Group)	320,382		5,904,640

26 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® S&P 500/BARRA VALUE INDEX FUND

March 31, 2004

Security	Shares	Value
Tribune Co.	117,020	$	5,902,489
Schwab (Charles) Corp. (The)	480,803		5,582,123
Computer Associates International Inc.	206,262		5,540,197
Alltel Corp.	110,604		5,518,034
AT&T Corp.	281,243		5,503,925
Union Pacific Corp.	91,739		5,487,827
PNC Financial Services Group	98,268		5,446,013
Corning Inc.1	477,712		5,340,820
Caremark Rx Inc.1	158,272		5,262,544
ConAgra Foods Inc.	190,287		5,126,332
Weyerhaeuser Co.	77,905		5,102,778
Danaher Corp.	54,544		5,092,773
CVS Corp.	140,488		4,959,226
Apache Corp.	114,855		4,958,290
Franklin Resources Inc.	88,394		4,921,778
Masco Corp.	160,356		4,881,237
Aetna Inc.	54,339		4,875,295
Sun Microsystems Inc.1	1,164,907		4,846,013
Entergy Corp.	81,090		4,824,855
Devon Energy Corp.	82,419		4,792,665
Mellon Financial Corp.	152,477		4,771,005
Halliburton Co.	155,249		4,718,017
Chubb Corp.	66,549		4,627,817
Anadarko Petroleum Corp.	89,188		4,625,290
Raytheon Co.	147,512		4,623,026
American Electric Power Co. Inc.	139,992		4,608,537
FirstEnergy Corp.	116,895		4,568,257
KeyCorp	148,545		4,499,428
Hancock (John) Financial Services Inc.	102,531		4,479,579
Burlington Resources Inc.	70,110		4,461,099
Anthem Inc.1	49,006		4,441,904
Kroger Co.	264,037		4,393,576
FPL Group Inc.	65,337		4,367,778
Becton, Dickinson & Co.	89,558		4,341,772
Baker Hughes Inc.	118,667		4,328,972
PG&E Corp.1	148,484		4,301,581
ACE Ltd.	98,903		4,219,202
Ingersoll-Rand Co. Class A	62,152		4,204,583
Burlington Northern Santa Fe Corp.	131,833		4,152,740
Xerox Corp.1	282,698		4,118,910
Equity Office Properties Trust	141,674		4,092,962
Progress Energy Inc.	86,849		4,088,851
Marathon Oil Corp.	120,624		4,061,410
Principal Financial Group Inc.	113,681		4,050,454
Air Products & Chemicals Inc.	80,540		4,036,665
Southwest Airlines Co.	279,747		3,975,205
Simon Property Group Inc.	67,969		3,972,108
Fortune Brands Inc.	51,694		3,961,311
Johnson Controls Inc.	66,819		3,952,344
Public Service Enterprise Group Inc.	83,698		3,932,132
Coca-Cola Enterprises Inc.	162,637		3,930,936
SouthTrust Corp.	117,355		3,891,492
Loews Corp.	65,885		3,891,168
Archer-Daniels-Midland Co.	229,636		3,873,959
M&T Bank Corp.	42,361		3,806,136
Univision Communications Inc. Class A1	114,288		3,772,647
Genzyme Corp.1	79,431		3,736,434
XL Capital Ltd. Class A	48,762		3,707,862
Northern Trust Corp.	78,087		3,638,073
Micron Technology Inc.1	215,931		3,608,207
Apple Computer Inc.1	131,021		3,544,118
PPG Industries Inc.	60,678		3,537,527
May Department Stores Co. (The)	102,263		3,536,255
Consolidated Edison Inc.	80,088		3,531,881
PACCAR Inc.	62,159		3,495,822
Marriott International Inc. Class A	81,706		3,476,590
Federated Department Stores Inc.	64,064		3,462,659
Monsanto Co.	94,094		3,450,427
Unocal Corp.	91,762		3,420,887
Sears, Roebuck and Co.	79,174		3,401,315
Comerica Inc.	62,140		3,375,445
Penney (J.C.) Co. Inc. (Holding Co.)	96,749		3,364,930
Limited Brands Inc.	165,256		3,305,120
Electronic Data Systems Corp.	170,221		3,293,776
TXU Corp.	114,773		3,289,394
Medco Health Solutions Inc.1	95,784		3,256,656

SCHEDULES OF INVESTMENTS 27

Schedule of Investments (Continued)

iSHARES^® S&P 500/BARRA VALUE INDEX FUND

March 31, 2004

Security	Shares	Value
St. Paul Companies Inc.	80,793	$	3,232,528
Safeway Inc.1	156,731		3,225,524
Bear Stearns Companies Inc. (The)	36,748		3,222,065
MBIA Inc.	51,073		3,202,277
Transocean Inc.1	113,354		3,161,443
Rohm & Haas Co.	78,900		3,143,376
McKesson Corp.	103,130		3,103,182
AON Corp.	111,126		3,101,527
Norfolk Southern Corp.	138,548		3,060,525
Quest Diagnostics Inc.	36,712		3,040,855
Marshall & Ilsley Corp.	80,237		3,033,761
Georgia-Pacific Corp.	89,895		3,028,563
Eaton Corp.	53,860		3,026,393
Lincoln National Corp.	63,067		2,984,330
Ameren Corp.	64,464		2,971,146
CIGNA Corp.	50,043		2,953,538
Equity Residential	98,700		2,946,195
Starwood Hotels & Resorts Worldwide Inc.	72,338		2,929,689
AmSouth Bancorp	124,399		2,924,620
Albertson’s Inc.	130,015		2,879,832
Regions Financial Corp.	78,721		2,874,891
PPL Corp.	62,833		2,865,185
Mattel Inc.	152,321		2,808,799
Edison International	115,444		2,804,135
Dover Corp.	72,120		2,796,092
Ambac Financial Group Inc.	37,862		2,793,458
Charter One Financial Inc.	78,884		2,789,338
SunGard Data Systems Inc.1	101,797		2,789,238
Kinder Morgan Inc.	43,664		2,751,705
Jefferson-Pilot Corp.	49,979		2,749,345
Pepsi Bottling Group Inc.	92,167		2,741,968
Phelps Dodge Corp.1	32,987		2,693,718
Computer Sciences Corp.1	66,463		2,680,453
Eastman Kodak Co.	101,538		2,657,249
Textron Inc.	48,992		2,603,925
Cinergy Corp.	63,093		2,579,873
Sempra Energy	80,621		2,563,748
Xcel Energy Inc.	141,310		2,516,731
ITT Industries Inc.	32,692		2,495,380
Pulte Homes Inc.	44,598		2,479,649
Fiserv Inc.1	69,118		2,472,351
Cincinnati Financial Corp.	56,840		2,469,698
DTE Energy Co.	59,974		2,467,930
BJ Services Co.1	56,459		2,442,981
PeopleSoft Inc.1	129,116		2,387,355
Nabors Industries Ltd.1	51,934		2,375,981
Parker Hannifin Corp.	42,010		2,373,565
Centex Corp.	43,841		2,370,044
Constellation Energy Group Inc.	59,264		2,367,597
Rockwell Automation Inc.	66,480		2,304,862
ProLogis	64,084		2,298,693
Donnelley (R.R.) & Sons Co.	75,981		2,298,425
CSX Corp.	75,825		2,296,739
Interpublic Group of Companies Inc.1	146,970		2,260,399
Newell Rubbermaid Inc.	97,333		2,258,126
MGIC Investment Corp.	34,878		2,240,214
Hilton Hotels Corp.	134,408		2,184,130
AmerisourceBergen Corp.	39,899		2,181,677
Harrah’s Entertainment Inc.	39,558		2,171,339
Torchmark Corp.	40,095		2,156,710
KeySpan Corp.	56,350		2,153,697
First Tennessee National Corp.	44,463		2,120,885
SAFECO Corp.	49,089		2,119,172
Plum Creek Timber Co. Inc.	64,891		2,107,660
Jabil Circuit Inc.1	70,852		2,085,174
Amerada Hess Corp.	31,839		2,078,450
Office Depot Inc.1	110,086		2,071,819
JDS Uniphase Corp.1	508,736		2,070,556
Molex Inc.	67,451		2,049,836
Sanmina-SCI Corp.1	184,401		2,030,255
MedImmune Inc.1	87,693		2,023,954
Siebel Systems Inc.1	175,668		2,021,939
MeadWestvaco Corp.	71,434		2,020,868
Genuine Parts Co.	61,630		2,016,534
Advanced Micro Devices Inc.1	123,489		2,004,226
Health Management Associates Inc. Class A	86,299		2,003,000
Union Planters Corp.	66,798		1,993,920
Sherwin-Williams Co. (The)	51,640		1,984,525
NiSource Inc.	92,979		1,975,804

28 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® S&P 500/BARRA VALUE INDEX FUND

March 31, 2004

Security	Shares	Value
Nordstrom Inc.	48,685	$	1,942,532
EOG Resources Inc.	40,766		1,870,752
Cooper Industries Ltd.	32,621		1,865,269
Kerr-McGee Corp.	35,722		1,839,683
Tenet Healthcare Corp.1	164,633		1,837,304
Noble Corp.1	47,746		1,834,401
R.J. Reynolds Tobacco Holdings Inc.	30,120		1,822,260
Zions Bancorporation	31,831		1,820,733
Huntington Bancshares Inc.	81,250		1,802,938
VF Corp.	38,278		1,787,583
Williams Companies Inc.	183,548		1,756,554
Scientific-Atlanta Inc.	54,083		1,749,044
Novellus Systems Inc.1	54,366		1,728,295
Sunoco Inc.	27,482		1,714,327
Nucor Corp.	27,870		1,713,448
Vulcan Materials Co.	36,105		1,712,821
AutoNation Inc.1	98,011		1,671,088
Thermo Electron Corp.1	58,790		1,662,581
Solectron Corp.1	297,910		1,647,442
Wendy’s International Inc.	40,356		1,642,086
Watson Pharmaceuticals Inc.1	38,238		1,636,204
American Power Conversion Corp.	70,730		1,627,497
Jones Apparel Group Inc.	44,747		1,617,604
El Paso Corp.	227,434		1,617,056
Leggett & Platt Inc.	67,982		1,611,853
BMC Software Inc.1	79,739		1,558,897
Grainger (W.W.) Inc.	32,320		1,551,360
UNUMProvident Corp.	105,157		1,538,447
NVIDIA Corp.1	57,840		1,532,182
Allied Waste Industries Inc.1	114,080		1,518,405
United States Steel Corp.	40,145		1,496,204
NCR Corp.1	33,478		1,475,041
Darden Restaurants Inc.	58,731		1,455,941
SUPERVALU Inc.	47,596		1,453,582
King Pharmaceuticals Inc.1	85,874		1,446,118
Applera Corp. - Applied Biosystems Group	73,079		1,445,503
Liz Claiborne Inc.	38,647		1,417,958
CenturyTel Inc.	51,373		1,412,244
Janus Capital Group Inc.	85,817		1,405,682
Alberto-Culver Co.	31,934		1,400,945
Brunswick Corp.	33,201		1,355,597
Providian Financial Corp.1	103,406		1,354,619
Hasbro Inc.	61,789		1,343,911
KB Home	16,612		1,342,250
Engelhard Corp.	44,697		1,335,993
Citizens Communications Co.1	100,723		1,303,356
Toys R Us Inc.1	75,712		1,271,962
Pinnacle West Capital Corp.	32,320		1,271,792
Tellabs Inc.1	147,087		1,269,361
LSI Logic Corp.1	134,229		1,253,699
Comverse Technology Inc.1	68,706		1,246,327
Pactiv Corp.1	55,679		1,238,858
CenterPoint Energy Inc.	108,375		1,238,726
Sabre Holdings Corp.	49,478		1,227,549
Stanley Works (The)	28,700		1,224,916
Temple-Inland Inc.	19,259		1,219,865
Eastman Chemical Co.	27,449		1,171,523
Goodrich (B.F.) Co.	41,640		1,168,835
Ashland Inc.	24,587		1,143,050
Symbol Technologies Inc.	82,512		1,138,666
Fluor Corp.	29,259		1,132,031
Manor Care Inc.	31,635		1,116,399
Bausch & Lomb Inc.	18,563		1,113,223
Humana Inc.1	57,710		1,097,644
Boise Cascade Corp.	30,784		1,066,666
Dana Corp.	53,063		1,053,831
Apartment Investment & Management Co. Class A	33,121		1,029,732
E*TRADE Financial Corp.1	76,839		1,025,801
Pall Corp.	44,720		1,014,697
Compuware Corp.1	136,035		1,013,461
Tektronix Inc.	30,171		986,893
TECO Energy Inc.	66,688		975,645
Louisiana-Pacific Corp.	37,804		975,343
Bemis Co.	37,491		974,766
Andrew Corp.1	55,659		974,032
PerkinElmer Inc.	44,898		928,940
Coors (Adolf) Company Class B	12,883		894,724
Ryder System Inc.	23,074		893,656

SCHEDULES OF INVESTMENTS 29

Schedule of Investments (Continued)

iSHARES^® S&P 500/BARRA VALUE INDEX FUND

March 31, 2004

Security	Shares	Value
Cummins Inc.	15,135	$	884,641
Reebok International Ltd.	20,788		859,584
CIENA Corp.1	169,765		843,732
ADC Telecommunications Inc.1	288,820		837,578
Circuit City Stores Inc.	74,088		837,194
Convergys Corp.1	51,290		779,608
Rowan Companies Inc.1	36,844		777,040
Gateway Inc.1	131,927		696,575
Crane Co.	21,021		693,693
Calpine Corp.1	147,372		688,227
Snap-On Inc.	20,694		669,244
Applied Micro Circuits Corp.1	110,372		634,639
Allegheny Energy Inc.1	44,900		615,579
Big Lots Inc.1	41,206		597,487
Worthington Industries Inc.	31,044		595,113
Peoples Energy Corp.	13,257		591,925
Dillards Inc. Class A	29,899		572,865
American Greetings Corp. Class A1	23,940		545,114
Nicor Inc.	15,468		544,938
Goodyear Tire & Rubber Co. (The)1	62,742		535,817
Cooper Tire & Rubber Co.	26,579		535,567
Dynegy Inc. Class A1	134,398		532,216
CMS Energy Corp.1	57,532		514,911
Thomas & Betts Corp.	21,114		460,707
Visteon Corp.	45,949		439,732
Great Lakes Chemical Corp.	18,031		430,039
Winn-Dixie Stores Inc.	50,111		380,844
Allegheny Technologies Inc.	28,456		344,318
Delta Air Lines Inc.	43,388		343,633
Power-One Inc.1	29,260		323,616
TOTAL COMMON STOCKS (Cost: $1,785,600,564)			1,897,351,149
SHORT-TERM INVESTMENTS – 6.73%
MONEY MARKET FUNDS – 2.76%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares2,3	38,218,463		38,218,463

Security	Shares or Principal		Value
Barclays Global Investors Funds Prime Money Market Fund, Institutional Shares2,3		11,151,346	$	11,151,346
BlackRock Temp Cash Money Market Fund2		521,971		521,971
Short-Term Investment Co. –   Liquid Assets Money Market Portfolio2		2,599,341		2,599,341
				52,491,121
FLOATING RATE NOTES – 1.30%
Beta Finance Inc.
1.05%, 05/20/042,4	$	506,879		506,869
1.05%, 09/15/042,4		1,013,759		1,013,712
1.06%, 10/12/042,4		506,879		506,853
1.14%, 08/23/042,4		506,879		507,050
CC USA Inc.
1.05%, 04/19/042,4		446,054		446,053
1.06%, 05/24/042,4		1,013,759		1,013,745
1.09%, 07/15/042,4		506,879		506,932
1.51%, 02/15/052,4		658,943		659,860
Dorada Finance Inc.
1.04%, 07/01/042		354,816		353,883
1.05%, 05/20/042,4		1,013,759		1,013,738
1.24%, 08/09/042		253,440		253,427
1.48%, 01/18/052,4		760,319		760,289
Five Finance Inc.
1.06%, 04/15/042,4		506,879		506,879
HBOS Treasury Services PLC
1.10%, 04/22/052		1,013,759		1,013,759
Holmes Financing PLC
1.05%, 04/15/042		101,376		101,376
K2 USA LLC
1.05%, 08/16/042,4		253,440		253,425
1.05%, 09/27/042,4		1,094,859		1,094,780
1.06%, 04/13/042		506,879		506,879
1.06%, 05/17/042		506,879		506,876
1.46%, 01/12/052,4		506,879		506,840
Links Finance LLC
1.05%, 06/28/042		506,879		506,855
1.06%, 05/04/042		506,879		506,877
1.06%, 07/20/042		405,503		405,479

30 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® S&P 500/BARRA VALUE INDEX FUND

March 31, 2004

Security	Principal		Value
Nationwide Building Society
1.09%, 07/23/042,4	$	760,319	$	760,319
1.11%, 12/28/042,4		1,013,759		1,013,759
Northern Rock PLC
1.11%, 01/13/052,4		963,071		963,071
Permanent Financing PLC
1.04%, 03/10/052		1,013,759		1,013,759
1.05%, 12/10/042		506,879		506,879
Sigma Finance Inc.
1.05%, 07/01/042		506,879		506,848
1.06%, 07/20/042		506,879		506,849
1.09%, 10/07/042		1,013,759		1,013,655
1.24%, 08/06/042		253,440		253,431
Tango Finance Corp.
1.05%, 01/18/052,4		446,054		446,018
1.06%, 07/15/042,4		304,128		304,099
1.07%, 02/25/052,4		567,705		567,603
1.10%, 07/06/042,4		304,128		304,119
WhistleJacket Capital LLC
1.05%, 09/15/042,4		506,879		506,833
1.32%, 02/04/052,4		253,440		253,397
White Pine Finance LLC
1.04%, 08/26/042,4		506,879		506,848
1.05%, 11/15/042,4		608,255		608,255
1.06%, 04/20/042,4		506,879		506,879
1.06%, 07/06/042,4		608,255		608,240
				24,603,297
COMMERCIAL PAPER – 1.20%
Alpine Securitization Corp.
1.03%, 04/14/042		476,467		476,289
1.03%, 04/20/042		506,879		506,604
1.03%, 04/23/042		598,118		597,741
1.03%, 04/26/042		506,879		506,517
Amsterdam Funding Corp.
1.03%, 05/05/042		410,572		410,173
Barton Capital Corp.
1.03%, 04/02/042		528,260		528,244
Blue Ridge Asset Funding Corp.
1.02%, 04/23/042		304,128		303,938
1.03%, 05/21/042		506,879		506,154
Corporate Asset Funding
1.05%, 05/21/042		527,155		526,389
Corporate Receivables Corp.
1.03%, 04/07/042		506,879		506,792
1.04%, 06/03/042		1,013,759		1,011,914
Delaware Funding Corp.
1.03%, 04/02/042		506,879		506,865
1.03%, 05/05/042		761,160		760,420
1.03%, 05/21/042		253,440		253,077
Edison Asset Securitization
1.07%, 09/21/042		506,879		504,274
Eureka Securitization Inc.
1.03%, 05/25/042		202,752		202,438
1.04%, 04/14/042		608,255		608,027
Falcon Asset Securitization
1.03%, 04/15/042		609,198		608,955
1.03%, 04/22/042		598,118		597,758
1.03%, 04/30/042		506,879		506,459
Galaxy Funding Inc.
1.05%, 05/17/042		506,879		506,203
Gemini Securitization Corp.
1.03%, 04/20/042		304,330		304,165
1.03%, 04/23/042		585,821		585,453
1.03%, 04/30/042		355,251		354,957
1.03%, 05/24/042		253,440		253,055
1.04%, 04/19/042		253,440		253,308
GIRO Funding US Corp.
1.05%, 05/19/042		253,440		253,085
Jupiter Securitization Corp.
1.03%, 04/16/042		1,013,759		1,013,324
1.03%, 04/19/042		1,368,574		1,367,870
1.03%, 04/28/042		608,255		607,785
1.03%, 04/30/042		863,469		862,753
Liberty Street Funding Corp.
1.04%, 04/08/042		355,181		355,109
1.05%, 04/05/042		410,572		410,524
Polonius Inc.
1.04%, 05/21/042		586,459		585,613

SCHEDULES OF INVESTMENTS 31

Schedule of Investments (Continued)

iSHARES^® S&P 500/BARRA VALUE INDEX FUND

March 31, 2004

Security	Principal		Value
Preferred Receivables Funding Corp.
1.03%, 04/19/042	$	1,064,447	$	1,063,898
1.04%, 04/23/042		1,165,823		1,165,082
1.04%, 05/20/042		253,440		253,081
Receivables Capital Corp.
1.04%, 04/14/042		446,054		445,886
Scaldis Capital LLC
1.05%, 06/30/042		362,926		361,973
Thames Asset Global Securitization No. 1 Inc.
1.03%, 04/19/042		506,879		506,618
Thunder Bay Funding Inc.
1.03%, 04/19/042		322,426		322,260
1.04%, 04/29/042		456,597		456,228
				22,717,258
TIME DEPOSITS – 1.02%
Abbey National Treasury Services PLC
1.08%, 04/01/042		3,548,155		3,548,155
1.33%, 02/10/052		506,879		506,814
1.39%, 02/02/052		506,879		506,815
1.40%, 10/25/042		1,013,759		1,013,673
Bank of New York
1.39%, 11/01/042		1,013,759		1,013,700
Bank of Nova Scotia
1.24%, 10/07/042		760,319		760,280
1.42%, 10/29/042		760,319		760,352
Canadian Imperial Bank of Commerce
1.24%, 10/07/042		760,319		760,260
1.38%, 11/22/042		253,440		253,452
1.40%, 10/29/042		1,013,759		1,013,744
National City Bank (Cleveland, Ohio)
1.02%, 04/01/042		1,520,638		1,520,638
Toronto-Dominion Bank
1.04%, 06/22/042		253,440		253,440
1.22%, 03/23/052		1,774,078		1,773,775
1.34%, 02/10/052		405,503		405,451
1.41%, 11/01/042		760,319		760,274
UBS Finance (Delaware)
1.06%, 04/01/042		2,027,517		2,027,517
1.10%, 09/08/042		1,013,759		1,008,803
1.11%, 12/17/042		1,520,638		1,508,448
				19,395,591
REPURCHASE AGREEMENTS – 0.32%
Bank of America, NA
1.06%, 04/01/042		2,027,517		2,027,517
Goldman, Sachs & Co.
1.08%, 04/01/042		4,055,035		4,055,035
				6,082,552
U.S. GOVERNMENT AGENCY NOTES – 0.13%
Federal Home Loan Mortgage Corporation
1.15%, 05/12/042		760,319		759,323
1.28%, 08/19/042		405,503		403,485
Federal National Mortgage Association
1.28%, 08/20/042		1,317,886		1,311,269
				2,474,077
TOTAL SHORT-TERM INVESTMENTS (Cost: $127,763,896)				127,763,896
TOTAL INVESTMENTS IN SECURITIES – 106.65% (Cost: $1,913,364,460)				2,025,115,045
Other Assets, Less Liabilities – (6.65%)				(126,268,556	)
NET ASSETS – 100.00%			$	1,898,846,489

¹ Non-income earning securities.

² All or a portion of this security represents investments of securities lending collateral.

³ Issuer is an affiliate of the Fund’s investment advisor. See Note 2.

⁴ Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

See notes to financial statements.

32 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® S&P MIDCAP 400 INDEX FUND

March 31, 2004

Security	Shares	Value
COMMON STOCKS – 99.91%
Gilead Sciences Inc.1	326,342	$	18,200,093
New York Community Bancorp Inc.	435,323		14,922,872
Washington Post Company (The) Class B	15,360		13,584,538
Lennar Corp. Class A	250,598		13,539,810
D.R. Horton Inc.	374,960		13,284,833
Coach Inc.1	300,790		12,329,382
Valero Energy Corp.	204,754		12,277,050
Affiliated Computer Services Inc. Class A1	219,196		11,376,272
Sovereign Bancorp Inc.	491,793		10,534,206
Fidelity National Financial Inc.	262,766		10,405,534
Tyson Foods Inc. Class A	568,110		10,254,386
L-3 Communications Holdings Inc.	169,732		10,095,659
Legg Mason Inc.	107,030		9,930,243
Mylan Laboratories Inc.	432,099		9,821,610
Varian Medical Systems Inc.1	110,549		9,541,484
National Commerce Financial Corp.	330,628		9,459,267
GreenPoint Financial Corp.	215,080		9,401,147
XTO Energy Inc.	371,530		9,377,424
Murphy Oil Corp.	148,151		9,329,068
Career Education Corp.1	161,526		9,148,833
CDW Corp.	134,249		9,076,575
Banknorth Group Inc.	262,622		8,939,653
Microchip Technology Inc.	335,634		8,914,439
Weatherford International Ltd.1	211,766		8,900,525
Mohawk Industries Inc.1	107,478		8,850,813
Smith International Inc.1	161,471		8,640,313
Harman International Industries Inc.	106,274		8,459,410
Dean Foods Co.1	251,651		8,405,143
Millennium Pharmaceuticals Inc.1	485,926		8,212,149
Compass Bancshares Inc.	196,320		8,141,390
Commerce Bancorp Inc.	122,304		8,057,388
Everest Re Group Ltd.	89,440		7,641,754
Patterson Dental Co.1	110,047		7,550,325
Barr Pharmaceuticals Inc.1	162,879		7,476,146
Ross Stores Inc.	243,870		7,464,861
Whole Foods Market Inc.	98,268		7,365,187
Omnicare Inc.	165,203		7,323,449
Synopsys Inc.1	252,492		7,312,168
SanDisk Corp.1	256,649		7,281,132
IVAX Corp.1	316,786		7,213,217
Old Republic International Corp.	292,374		7,180,705
Republic Services Inc.	255,466		6,915,465
ENSCO International Inc.	243,425		6,857,282
Lear Corp.	110,364		6,838,153
Hillenbrand Industries Inc.	99,985		6,787,982
Expeditors International Washington Inc.	169,299		6,685,618
Manpower Inc.	142,877		6,643,781
Sepracor Inc.1	136,896		6,584,698
Fastenal Co.	122,357		6,569,347
Telephone & Data Systems Inc.	92,628		6,564,546
Hormel Foods Corp.	223,627		6,558,980
Oxford Health Plans Inc.	133,493		6,521,133
Chico’s FAS Inc.1	140,487		6,518,597
Williams-Sonoma Inc.1	189,358		6,476,044
Radian Group Inc.	151,420		6,450,492
Caesars Entertainment Inc.1	488,743		6,373,209
SCANA Corp.	178,564		6,312,237
PETsMART Inc.	230,649		6,287,492
Dun & Bradstreet Corp.1	117,247		6,272,715
Cadence Design Systems Inc.1	424,188		6,252,531
Pioneer Natural Resources Co.	192,452		6,216,200
Coventry Health Care Inc.1	145,306		6,150,803
Wisconsin Energy Corp.	191,155		6,145,633
Energizer Holdings Inc.1	131,349		6,132,685
DST Systems Inc.1	134,545		6,101,616
Liberty Property Trust	134,828		6,067,260
Mandalay Resort Group	104,640		5,991,686
Leucadia National Corp.	112,302		5,983,451
Energy East Corp.	235,501		5,972,305
Hibernia Corp. Class A	250,257		5,878,537
Outback Steakhouse Inc.	120,645		5,875,412
Brinker International Inc.1	154,409		5,856,733
TCF Financial Corp.	114,395		5,842,153
Dollar Tree Stores Inc.1	185,822		5,740,042

SCHEDULES OF INVESTMENTS 33

Schedule of Investments (Continued)

iSHARES^® S&P MIDCAP 400 INDEX FUND

March 31, 2004

Security	Shares	Value
DENTSPLY International Inc.	127,624	$	5,657,572
Diebold Inc.	117,561		5,657,035
PMI Group Inc. (The)	151,286		5,652,045
CH Robinson Worldwide Inc.	136,169		5,651,013
Pepco Holdings Inc.	276,355		5,648,696
GTECH Holdings Corp.	95,271		5,634,327
SEI Investment Co.	169,997		5,609,901
SPX Corp.	121,636		5,532,005
Vishay Intertechnology Inc.1	258,710		5,520,871
Mercantile Bankshares Corp.	128,379		5,516,446
Constellation Brands Inc.1	170,717		5,480,016
Beckman Coulter Inc.	99,428		5,422,803
Lam Research Corp.1	214,752		5,413,898
Gentex Corp.	124,221		5,388,707
Toll Brothers Inc.1	118,227		5,371,053
Berkley (W.R.) Corp.	134,450		5,361,866
ChoicePoint Inc.1	140,950		5,360,328
PacifiCare Health Systems Inc.1	134,719		5,328,136
Michaels Stores Inc.	109,371		5,317,618
Zebra Technologies Corp. Class A1	76,603		5,313,950
Associated Bancorp	118,180		5,293,282
Abercrombie & Fitch Co. Class A	155,544		5,263,609
Harris Corp.	107,606		5,209,206
Belo (A.H.) Corp.	186,571		5,179,211
Cephalon Inc.1	89,731		5,142,484
Edwards (A.G.) Inc.	129,144		5,052,113
Henry Schein Inc.1	70,372		5,025,968
Intersil Corp. Class A	224,020		4,993,406
Lincare Holdings Inc.1	158,582		4,982,646
Hospitality Properties Trust	107,360		4,981,504
Storage Technology Corp.1	178,366		4,963,926
Atmel Corp.1	760,126		4,940,819
ALLETE Inc.	140,156		4,918,074
AMB Property Corp.	131,803		4,899,118
CarMax Inc.1	167,265		4,884,138
Questar Corp.	133,888		4,878,879
International Rectifier Corp.1	106,022		4,875,952
Astoria Financial Corp.	128,012		4,868,296
Smithfield Foods Inc.1	178,480		4,840,378
PepsiAmericas Inc.	235,152		4,801,804
Corinthian Colleges Inc.1	144,656		4,782,327
Ceridian Corp.1	240,867		4,747,489
Westwood One Inc.1	161,154		4,745,985
Avnet Inc.1	193,712		4,744,007
City National Corp.	78,926		4,727,667
Gallagher (Arthur J.) & Co.	145,100		4,725,907
Patterson-UTI Energy Inc.1	133,321		4,720,897
Pogo Producing Co.	102,881		4,719,151
Pentair Inc.	79,529		4,692,211
Unitrin Inc.	109,372		4,692,059
Network Associates Inc.1	260,281		4,685,058
Cognizant Technology Solutions Corp.1	103,007		4,661,067
Alliant Energy Corp.	178,504		4,651,814
Arrow Electronics Inc.1	181,402		4,618,495
Peabody Energy Corp.	98,998		4,604,397
Precision Castparts Corp.	104,172		4,586,693
Health Net Inc.1	183,244		4,568,273
Fairchild Semiconductor International Inc. Class A1	189,641		4,557,073
MDU Resources Group Inc.	188,223		4,421,358
Community Health Systems Inc.1	158,785		4,418,987
Equitable Resources Inc.	99,316		4,411,617
Investors Financial Services Corp.	106,286		4,391,738
New Plan Excel Realty Trust	160,415		4,387,350
Apogent Technologies Inc.1	142,610		4,375,275
Silicon Laboratories Inc.1	82,614		4,368,628
3Com Corp.1	616,788		4,354,523
Mack-Cali Realty Corp.	96,866		4,350,252
NSTAR	85,498		4,336,459
Newfield Exploration Co.1	90,100		4,318,493
AmeriCredit Corp.1	253,249		4,312,830
Noble Energy Inc.	91,403		4,305,081
Universal Health Services Inc. Class B	93,378		4,301,924
Rent-A-Center Inc.1	130,287		4,298,168
Brown & Brown Inc.	110,560		4,285,306
Smucker (J.M.) Co. (The)	80,610		4,254,596
Neiman-Marcus Group Inc. Class A	78,869		4,254,194
Lyondell Chemical Co.	285,108		4,231,003

34 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® S&P MIDCAP 400 INDEX FUND

March 31, 2004

Security	Shares	Value
Hovnanian Enterprises Inc. Class A1	97,938	$	4,226,025
Eaton Vance Corp.	110,169		4,199,642
JetBlue Airways Corp.1	164,535		4,161,090
Protective Life Corp.	110,986		4,156,426
Fair Isaac Corp.	113,551		4,096,920
Bank of Hawaii Corp.	88,093		4,081,349
International Speedway Corp. Class A	85,706		4,028,182
Valspar Corp. (The)	81,702		4,022,189
Jacobs Engineering Group Inc.1	90,169		4,021,537
United Dominion Realty Trust Inc.	204,182		4,006,051
Wilmington Trust Corp.	106,279		3,971,646
National Instruments Corp.	126,171		3,969,340
Cypress Semiconductor Corp.1	193,860		3,968,314
Cytyc Corp.1	176,321		3,923,142
Bowater Inc.	89,216		3,892,494
National-Oilwell Inc.1	136,984		3,873,908
Saks Inc.1	219,915		3,870,504
Hubbell Inc. Class B	96,292		3,864,198
Cheesecake Factory (The)1	83,246		3,840,138
Packaging Corporation of America	169,958		3,834,252
First American Corp.	125,989		3,832,585
Cooper Cameron Corp.1	86,955		3,830,368
ADTRAN Inc.	127,432		3,826,783
Northeast Utilities	205,118		3,825,451
Sonoco Products Co.	157,337		3,820,142
DPL Inc.	203,721		3,819,769
CheckFree Corp.1	128,887		3,797,011
Colonial BancGroup Inc. (The)	204,788		3,788,578
Great Plains Energy Inc.	111,530		3,768,599
Tech Data Corp.1	91,833		3,759,643
Entercom Communications Corp.1	83,001		3,757,455
BorgWarner Inc.	44,210		3,750,334
Education Management Corp.1	117,563		3,742,030
Triad Hospitals Inc.1	121,305		3,738,620
Pride International Inc.1	218,431		3,726,433
Webster Financial Corp.	73,460		3,725,157
ONEOK Inc.	164,755		3,715,225
OGE Energy Corp.	140,102		3,704,297
Donaldson Co. Inc.	139,446		3,699,502
Applebee’s International Inc.	89,416		3,697,352
Hunt (J.B.) Transport Services Inc.1	129,129		3,637,564
Martin Marietta Materials Inc.	78,795		3,637,177
Certegy Inc.	103,628		3,629,053
Protein Design Labs Inc.1	151,068		3,598,440
Barnes & Noble Inc.1	109,816		3,580,002
Independence Community Bank Corp.	87,608		3,570,026
Cullen/Frost Bankers Inc.	83,376		3,565,158
FirstMerit Corp.	136,617		3,558,873
Ryland Group Inc.	39,669		3,510,707
American Financial Group Inc.	117,554		3,506,636
O’Reilly Automotive Inc.1	87,404		3,499,656
HON Industries Inc.	93,784		3,485,013
Covance Inc.1	101,103		3,481,987
Activision Inc.1	217,655		3,443,302
Rayonier Inc. REIT	78,681		3,439,147
Viad Corp.	142,278		3,438,859
Ruby Tuesday Inc.	106,240		3,415,616
DeVry Inc.1	112,874		3,403,151
Puget Energy Inc.	151,719		3,393,954
Polycom Inc.1	159,712		3,390,686
Pier 1 Imports Inc.	142,686		3,381,658
Krispy Kreme Doughnuts Inc.1	98,343		3,377,099
Scotts Co. (The) Class A1	52,202		3,348,758
Timberland Co. Class A1	56,142		3,337,642
First Health Group Corp.1	151,948		3,321,583
HCC Insurance Holdings Inc.	102,731		3,321,293
Hawaiian Electric Industries Inc.	64,052		3,320,456
Harte-Hanks Inc.	140,728		3,295,850
Claire’s Stores Inc.	158,067		3,294,116
Lee Enterprises Inc.	72,434		3,272,568
Sybase Inc.1	155,700		3,268,143
Cabot Corp.	99,505		3,263,764
Waddell & Reed Financial Inc. Class A	132,638		3,252,284
BISYS Group Inc. (The)1	193,982		3,251,138
IndyMac Bancorp Inc.	89,542		3,249,479
Stericycle Inc.1	67,748		3,242,419

SCHEDULES OF INVESTMENTS 35

Schedule of Investments (Continued)

iSHARES^® S&P MIDCAP 400 INDEX FUND

March 31, 2004

Security	Shares	Value
National Fuel Gas Co.	131,795	$	3,242,157
Washington Federal Inc.	126,424		3,227,605
Aqua America Inc.	148,823		3,226,488
Graco Inc.	109,930		3,200,062
Valeant Pharmaceuticals International	133,912		3,196,479
Regis Corp.	71,422		3,173,994
Provident Financial Group Inc.	78,729		3,161,757
Charles River Laboratories International Inc.1	73,764		3,160,787
CBRL Group Inc.	79,679		3,158,476
Teleflex Inc.	63,908		3,146,191
Jefferies Group Inc.	88,773		3,136,350
Tootsie Roll Industries Inc.	85,532		3,127,040
Herman Miller Inc.	117,234		3,121,941
AnnTaylor Stores Corp.1	72,942		3,121,918
Pharmaceutical Resources Inc.1	54,776		3,114,563
Copart Inc.1	143,250		3,112,822
Advanced Fibre Communications Inc.1	140,388		3,092,748
American Eagle Outfitters Inc.1	114,613		3,089,966
RPM International Inc.	186,425		3,083,470
StanCorp Financial Group Inc.	47,003		3,066,946
Reynolds & Reynolds Co. (The) Class A	107,643		3,058,138
Edwards Lifesciences Corp.1	95,413		3,048,445
Extended Stay America Inc.	156,478		3,030,979
Grant Prideco Inc.1	195,490		3,030,095
Acxiom Corp.	137,726		3,024,463
AGL Resources Inc.	104,085		3,020,547
Vectren Corp.	122,147		3,013,366
Harsco Corp.	65,773		2,992,672
Borders Group Inc.	125,992		2,991,050
Allmerica Financial Corp.1	85,389		2,950,190
Raymond James Financial Inc.	118,127		2,935,456
Integrated Circuit Systems Inc.1	116,502		2,916,045
Steris Corp.1	112,516		2,902,913
Furniture Brands International Inc.	89,887		2,894,361
FMC Technologies Inc.1	106,734		2,885,020
BJ’s Wholesale Club Inc.1	112,343		2,859,129
Church & Dwight Co. Inc.	66,009		2,858,850
99 Cents Only Stores1	116,058		2,834,136
Avocent Corp.1	76,956		2,831,211
Varco International Inc.1	157,122		2,829,767
Carlisle Companies Inc.	49,686		2,814,712
Westar Energy Inc.	133,871		2,805,936
Western Gas Resources Inc.	55,089		2,801,276
WPS Resources Corp.	58,260		2,784,828
Henry (Jack) & Associates Inc.	144,299		2,779,199
AMETEK Inc.	107,479		2,755,762
Tidewater Inc.	97,520		2,743,238
Semtech Corp.1	118,824		2,712,752
Plantronics Inc.1	73,946		2,707,163
CNF Inc.	80,120		2,692,032
Arch Coal Inc.	84,761		2,660,648
Titan Corp. (The)1	131,577		2,656,540
Westamerica Bancorp	52,565		2,652,430
IMC Global Inc.	185,285		2,649,576
Cree Inc.1	118,705		2,647,121
Lubrizol Corp.	83,137		2,617,984
Media General Inc. Class A	37,871		2,547,961
Valassis Communications Inc.1	83,795		2,547,368
Integrated Device Technology Inc.1	169,670		2,545,050
AmerUs Group Co.	63,064		2,544,632
York International Corp.	64,562		2,537,932
RF Micro Devices Inc.1	299,379		2,532,746
AGCO Corp.1	121,373		2,513,635
Airgas Inc.	117,945		2,512,228
Greater Bay Bancorp	85,128		2,489,994
Sylvan Learning Systems Inc.1	70,137		2,462,510
Apria Healthcare Group Inc.1	82,147		2,459,481
FMC Corp.1	56,803		2,432,304
Werner Enterprises Inc.	128,039		2,426,339
Gartner Inc. Class A1	208,064		2,423,946
Boyd Gaming Corp.	105,305		2,410,431
Brink’s Co. (The)	87,328		2,408,506
Kennametal Inc.	58,359		2,408,476
MONY Group Inc. (The)1	76,019		2,390,037
Blyth Inc.	73,144		2,389,614
Duquesne Light Holdings Inc.	121,203		2,363,459

36 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® S&P MIDCAP 400 INDEX FUND

March 31, 2004

Security	Shares	Value
WGL Holdings Inc.	78,290	$	2,356,529
Lancaster Colony Corp.	57,563		2,325,545
Helmerich & Payne Inc.	81,019		2,321,194
Swift Transportation Co. Inc.1	134,580		2,310,739
Callaway Golf Co.	121,611		2,308,177
Overseas Shipholding Group Inc.	63,180		2,306,070
ITT Educational Services Inc.1	73,501		2,293,231
Perrigo Co.	112,862		2,262,883
Varian Inc.1	56,032		2,250,805
Cytec Industries Inc.	63,273		2,250,621
Readers Digest Association Inc. (The)	159,578		2,246,858
Highwoods Properties Inc.	85,508		2,241,165
Alexander & Baldwin Inc.	67,298		2,226,218
ArvinMeritor Inc.	111,553		2,212,096
United Rentals Inc.1	124,002		2,203,516
Macromedia Inc.1	108,310		2,173,782
Forest Oil Corp.1	85,923		2,169,556
Imation Corp.	56,877		2,139,713
Emmis Communications Corp.1	89,082		2,121,042
Trinity Industries Inc.	75,404		2,096,231
Ascential Software Corp.1	95,593		2,095,399
Nordson Corp.	55,686		2,085,998
Dycom Industries Inc.1	77,717		2,061,055
Universal Corp.	40,457		2,056,025
KEMET Corp.1	139,210		1,996,271
Olin Corp.	111,193		1,984,795
Micrel Inc.1	148,417		1,981,367
LifePoint Hospitals Inc.1	60,702		1,963,103
Ohio Casualty Corp.1	98,050		1,960,020
Mentor Graphics Corp.1	109,820		1,956,992
PNM Resources Inc.	65,059		1,955,023
Albemarle Corp.	66,647		1,932,763
Banta Corp.	41,318		1,912,610
Potlatch Corp.	46,493		1,894,590
Rollins Inc.	72,954		1,880,025
MPS Group Inc.1	168,904		1,878,212
Minerals Technologies Inc.	32,862		1,876,420
Flowserve Corp.1	88,989		1,864,320
IDACORP Inc.	61,714		1,845,249
RSA Security Inc.1	97,349		1,829,188
Bob Evans Farms Inc.	56,052		1,818,327
Silicon Valley Bancshares1	55,925		1,814,207
GATX Corp.	79,156		1,754,889
Ferro Corp.	66,663		1,743,237
Scholastic Corp.1	63,751		1,737,215
Cabot Microelectronics Corp.1	39,878		1,684,447
Tupperware Corp.	94,521		1,683,419
Catalina Marketing Corp.1	86,437		1,676,013
Kelly Services Inc. Class A	56,197		1,663,993
Black Hills Corp.	51,778		1,650,165
Keane Inc.1	103,128		1,623,235
Cincinnati Bell Inc.1	395,029		1,607,768
Granite Construction Inc.	67,193		1,597,178
Lattice Semiconductor Corp.1	182,406		1,592,404
CommScope Inc.1	95,415		1,588,660
TriQuint Semiconductor Inc.1	216,102		1,577,545
Bandag Inc.	31,099		1,547,797
Federal Signal Corp.	77,237		1,533,154
Payless ShoeSource Inc.1	109,540		1,529,178
Superior Industries International Inc.	43,025		1,524,806
VISX Inc.1	77,785		1,518,363
Ruddick Corp.	74,971		1,517,413
Aquila Inc.1	315,265		1,484,898
Macrovision Corp.1	79,180		1,479,082
LTX Corp.1	96,132		1,451,593
CSG Systems International Inc.1	84,240		1,447,243
Modine Manufacturing Co.	55,512		1,446,643
Wind River Systems Inc.1	130,002		1,439,122
Hanover Compressor Co.1	118,928		1,437,840
Transaction Systems Architects Inc. Class A1	61,806		1,430,191
Internet Security Systems Inc.1	80,121		1,413,334
Sensient Technologies Corp.	75,108		1,402,266
Sierra Pacific Resources1	188,592		1,395,581
Price Communications Corp.1	87,547		1,373,612
McDATA Corp. Class A1	189,199		1,331,961
Quanta Services Inc.1	187,438		1,327,061
Sotheby’s Holdings Inc. Class A1	99,895		1,283,651
Tecumseh Products Co. Class A	29,845		1,256,475
Plexus Corp.1	69,505		1,236,494

SCHEDULES OF INVESTMENTS 37

Schedule of Investments (Continued)

iSHARES^® S&P MIDCAP 400 INDEX FUND

March 31, 2004

Security	Shares or Principal		Value
Credence Systems Corp.1		103,459	$	1,229,093
Vertex Pharmaceuticals Inc.1		125,558		1,182,756
Six Flags Inc.1		150,136		1,178,568
Crompton Corp.		179,724		1,146,639
Longs Drug Stores Corp.		60,521		1,139,610
Horace Mann Educators Corp.		68,968		1,084,177
LaBranche & Co. Inc.		96,144		1,077,774
Quantum Corp.1		290,100		1,073,370
Alaska Air Group Inc.1		42,911		1,058,185
Newport Corp.1		62,804		1,050,083
Advent Software Inc.1		52,656		984,667
Korn/Ferry International1		60,840		973,440
Longview Fibre Co.		82,745		923,434
Sequa Corp. Class A1		16,903		835,008
Interstate Bakeries Corp.		72,324		822,324
Glatfelter Co.		70,873		796,613
Powerwave Technologies Inc.1		101,544		792,043
Retek Inc.1		88,357		667,979
TOTAL COMMON STOCKS (Cost: $1,394,524,534)				1,634,560,718
SHORT-TERM INVESTMENTS – 21.10%
MONEY MARKET FUNDS – 8.13%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares2,3		92,777,655		92,777,655
Barclays Global Investors Funds Prime Money Market Fund, Institutional Shares2,3		31,432,807		31,432,807
BlackRock Temp Cash Money Market Fund2		1,471,303		1,471,303
Short-Term Investment Co. – Liquid Assets Money Market Portfolio2		7,326,880		7,326,880
				133,008,645
FLOATING RATE NOTES – 4.24%
Beta Finance Inc.
1.05%, 05/20/042,4	$	1,428,764		1,428,735
1.05%, 09/15/042,4		2,857,528		2,857,398
1.06%, 10/12/042,4		1,428,764		1,428,689
1.14%, 08/23/042,4		1,428,764		1,429,245
Security	Principal		Value
CC USA Inc.
1.05%, 04/19/042,4	$	1,257,312	$	1,257,309
1.06%, 05/24/042,4		2,857,528		2,857,487
1.09%, 07/15/042,4		1,428,764		1,428,912
1.51%, 02/15/052,4		1,857,393		1,859,977
Dorada Finance Inc.
1.04%, 07/01/042		1,000,135		997,506
1.05%, 05/20/042,4		2,857,528		2,857,471
1.24%, 08/09/042		714,382		714,344
1.48%, 01/18/052,4		2,143,146		2,143,061
Five Finance Inc.
1.06%, 04/15/042,4		1,428,764		1,428,764
HBOS Treasury Services PLC
1.10%, 04/22/052		2,857,528		2,857,528
Holmes Financing PLC
1.05%, 04/15/042		285,753		285,753
K2 USA LLC
1.05%, 08/16/042,4		714,382		714,342
1.05%, 09/27/042,4		3,086,130		3,085,904
1.06%, 04/13/042		1,428,764		1,428,762
1.06%, 05/17/042		1,428,764		1,428,755
1.46%, 01/12/052,4		1,428,764		1,428,652
Links Finance LLC
1.05%, 06/28/042		1,428,764		1,428,695
1.06%, 05/04/042		1,428,764		1,428,758
1.06%, 07/20/042		1,143,011		1,142,942
Nationwide Building Society
1.09%, 07/23/042,4		2,143,146		2,143,146
1.11%, 12/28/042,4		2,857,528		2,857,528
Northern Rock PLC
1.11%, 01/13/052,4		2,714,652		2,714,652
Permanent Financing PLC
1.04%, 03/10/052		2,857,528		2,857,528
1.05%, 12/10/042		1,428,764		1,428,764
Sigma Finance Inc.
1.05%, 07/01/042		1,428,764		1,428,675
1.06%, 07/20/042		1,428,764		1,428,678
1.09%, 10/07/042		2,857,528		2,857,233
1.24%, 08/06/042		714,382		714,357

38 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® S&P MIDCAP 400 INDEX FUND

March 31, 2004

Security	Principal		Value
Tango Finance Corp.
1.05%, 01/18/052,4	$	1,257,312	$	1,257,211
1.06%, 07/15/042,4		857,258		857,177
1.07%, 02/25/052,4		1,600,216		1,599,927
1.10%, 07/06/042,4		857,258		857,235
WhistleJacket Capital LLC
1.05%, 09/15/042,4		1,428,764		1,428,634
1.32%, 02/04/052,4		714,382		714,261
White Pine Finance LLC
1.04%, 08/26/042,4		1,428,764		1,428,675
1.05%, 11/15/042,4		1,714,517		1,714,517
1.06%, 04/20/042,4		1,428,764		1,428,764
1.06%, 07/06/042,4		1,714,517		1,714,474
				69,350,425
COMMERCIAL PAPER – 3.91%
Alpine Securitization Corp.
1.03%, 04/14/042		1,343,038		1,342,539
1.03%, 04/20/042		1,428,764		1,427,987
1.03%, 04/23/042		1,685,941		1,684,880
1.03%, 04/26/042		1,428,764		1,427,743
Amsterdam Funding Corp.
1.03%, 05/05/042		1,157,299		1,156,173
Barton Capital Corp.
1.03%, 04/02/042		1,489,029		1,488,987
Blue Ridge Asset Funding Corp.
1.02%, 04/23/042		857,258		856,724
1.03%, 05/21/042		1,428,764		1,426,720
Corporate Asset Funding
1.05%, 05/21/042		1,485,915		1,483,758
Corporate Receivables Corp.
1.03%, 04/07/042		1,428,764		1,428,519
1.04%, 06/03/042		2,857,528		2,852,327
Delaware Funding Corp.
1.03%, 04/02/042		1,428,764		1,428,723
1.03%, 05/05/042		2,145,518		2,143,431
1.03%, 05/21/042		714,382		713,360
Edison Asset Securitization
1.07%, 09/21/042		1,428,764		1,421,417
Eureka Securitization Inc.
1.03%, 05/25/042		571,506		570,623
1.04%, 04/14/042		1,714,517		1,713,873
Falcon Asset Securitization
1.03%, 04/15/042		1,717,174		1,716,486
1.03%, 04/22/042		1,685,941		1,684,929
1.03%, 04/30/042		1,428,764		1,427,578
Galaxy Funding Inc.
1.05%, 05/17/042		1,428,764		1,426,856
Gemini Securitization Corp.
1.03%, 04/20/042		857,830		857,364
1.03%, 04/23/02		1,651,280		1,650,240
1.03%, 04/30/042		1,001,364		1,000,533
1.03%, 05/24/042		714,382		713,299
1.04%, 04/19/042		714,382		714,011
GIRO Funding US Corp.
1.05%, 05/19/042		714,382		713,382
Jupiter Securitization Corp.
1.03%, 04/16/042		2,857,528		2,856,302
1.03%, 04/19/042		3,857,663		3,855,676
1.03%, 04/28/042		1,714,517		1,713,192
1.03%, 04/30/042		2,433,899		2,431,880
Liberty Street Funding Corp.
1.04%, 04/08/042		1,001,163		1,000,961
1.05%, 04/05/042		1,157,299		1,157,164
Polonius Inc.
1.04%, 05/21/042		1,653,080		1,650,692
Preferred Receivables Funding Corp.
1.03%, 04/19/042		3,000,404		2,998,859
1.04%, 04/23/042		3,286,157		3,284,069
1.04%, 05/20/042		714,382		713,371
Receivables Capital Corp.
1.04%, 04/14/042		1,257,312		1,256,840
Scaldis Capital LLC
1.05%, 06/30/042		1,022,995		1,020,310
Thames Asset Global Securitization No. 1 Inc.
1.03%, 04/19/042		1,428,764		1,428,028

SCHEDULES OF INVESTMENTS 39

Schedule of Investments (Continued)

iSHARES^® S&P MIDCAP 400 INDEX FUND

March 31, 2004

Security	Principal		Value
Thunder Bay Funding Inc.
1.03%, 04/19/042	$	908,837	$	908,369
1.04%, 04/29/042		1,287,031		1,285,990
				64,034,165
TIME DEPOSITS – 3.34%
Abbey National Treasury Services PLC
1.08%, 04/01/042		10,001,348		10,001,348
1.33%, 02/10/052		1,428,764		1,428,579
1.39%, 02/02/052		1,428,764		1,428,584
1.40%, 10/25/042		2,857,528		2,857,285
Bank of New York
1.39%, 11/01/042		2,857,528		2,857,360
Bank of Nova Scotia
1.24%, 10/07/042		2,143,146		2,143,035
1.42%, 10/29/042		2,143,146		2,143,239
Canadian Imperial Bank of Commerce
1.24%, 10/07/042		2,143,146		2,142,980
1.38%, 11/22/042		714,382		714,417
1.40%, 10/29/042		2,857,528		2,857,487
National City Bank (Cleveland, Ohio)
1.02%, 04/01/042		4,286,292		4,286,292
Toronto-Dominion Bank
1.04%, 06/22/042		714,382		714,382
1.22%, 03/23/052		5,000,674		4,999,819
1.34%, 02/10/052		1,143,011		1,142,863
1.41%, 11/01/042		2,143,146		2,143,020
UBS Finance (Delaware)
1.06%, 04/01/042		5,715,056		5,715,056
1.10%, 09/08/042		2,857,528		2,843,558
1.11%, 12/17/042		4,286,292		4,251,930
				54,671,234
REPURCHASE AGREEMENTS – 1.05%
Bank of America, NA
1.06%, 04/01/042		5,715,056		5,715,056
Goldman, Sachs & Co.
1.08%, 04/01/042		11,430,112		11,430,112
				17,145,168
U.S. GOVERNMENT AGENCY NOTES – 0.43%
Federal Home Loan Mortgage Corporation
1.15%, 05/12/042		2,143,146		2,140,340
1.28%, 08/19/042		1,143,011		1,137,322
Federal National Mortgage Association
1.28%, 08/20/042		3,714,786		3,696,154
				6,973,816
TOTAL SHORT-TERM INVESTMENTS (Cost: $345,183,453)				345,183,453
TOTAL INVESTMENTS IN SECURITIES – 121.01% (Cost: $1,739,707,987)				1,979,744,171
Other Assets, Less Liabilities – (21.01%)				(343,723,817	)
NET ASSETS – 100.00%			$	1,636,020,354

¹ Non-income earning securities.

² All or a portion of this security represents investments of securities lending collateral.

³ Issuer is an affiliate of the Fund’s investment advisor. See Note 2.

⁴ Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

See notes to financial statements.

40 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® S&P MIDCAP 400/BARRA GROWTH INDEX FUND

March 31, 2004

Security	Shares	Value
COMMON STOCKS – 99.95%
Gilead Sciences Inc.1	270,845	$	15,105,026
New York Community Bancorp Inc.	361,193		12,381,696
Washington Post Company (The) Class B	12,743		11,270,037
Lennar Corp. Class A	207,900		11,232,837
Coach Inc.1	249,507		10,227,292
Affiliated Computer Services Inc. Class A1	181,773		9,434,019
Legg Mason Inc.	88,643		8,224,298
Mylan Laboratories Inc.	358,271		8,143,500
Varian Medical Systems Inc.1	91,547		7,901,422
XTO Energy Inc.	307,646		7,764,979
Murphy Oil Corp.	122,681		7,725,223
Career Education Corp.1	133,752		7,575,713
CDW Corp.	111,163		7,515,730
Microchip Technology Inc.	277,913		7,381,369
Smith International Inc.1	133,684		7,153,431
Harman International Industries Inc.	87,974		7,002,730
Compass Bancshares Inc.	162,508		6,739,207
Commerce Bancorp Inc.	101,237		6,669,494
Patterson Dental Co.1	91,076		6,248,724
Barr Pharmaceuticals Inc.1	134,811		6,187,825
Ross Stores Inc.	201,812		6,177,465
Whole Foods Market Inc.	81,324		6,095,234
Synopsys Inc.1	208,945		6,051,047
SanDisk Corp.1	212,391		6,025,533
IVAX Corp.1	262,145		5,969,042
Hillenbrand Industries Inc.	82,721		5,615,929
Expeditors International Washington Inc.	140,049		5,530,535
Manpower Inc.	118,200		5,496,300
Sepracor Inc.1	113,237		5,446,700
Fastenal Co.	101,196		5,433,213
Hormel Foods Corp.	184,977		5,425,375
Oxford Health Plans Inc.	110,418		5,393,919
Chico’s FAS Inc1	116,206		5,391,958
Williams-Sonoma Inc.1	156,636		5,356,951
PETsMART Inc.	190,742		5,199,627
Dun & Bradstreet Corp.1	96,981		5,188,484
Cadence Design Systems Inc.1	350,847		5,171,485
Coventry Health Care Inc.1	120,157		5,086,246
Energizer Holdings Inc.1	108,621		5,071,514
DST Systems Inc.1	111,275		5,046,321
Mandalay Resort Group	86,533		4,954,880
Outback Steakhouse Inc.	99,766		4,858,604
Brinker International Inc.1	127,676		4,842,751
TCF Financial Corp.	94,577		4,830,047
Dollar Tree Stores Inc.1	153,618		4,745,260
DENTSPLY International Inc.	105,514		4,677,436
Diebold Inc.	97,198		4,677,168
CH Robinson Worldwide Inc.	112,577		4,671,946
GTECH Holdings Corp.	78,770		4,658,458
SEI Investment Co.	140,556		4,638,348
Beckman Coulter Inc.	82,175		4,481,825
Lam Research Corp.1	177,525		4,475,405
Gentex Corp.	102,676		4,454,085
ChoicePoint Inc.1	116,515		4,431,065
Michaels Stores Inc.	90,395		4,395,005
Zebra Technologies Corp. Class A1	63,319		4,392,439
Abercrombie & Fitch Co. Class A	128,565		4,350,640
Cephalon Inc.1	74,158		4,249,995
Henry Schein Inc.1	58,149		4,153,002
Lincare Holdings Inc.1	131,029		4,116,931
Atmel Corp.1	628,111		4,082,722
CarMax Inc.1	138,196		4,035,323
International Rectifier Corp.1	87,597		4,028,586
Corinthian Colleges Inc.1	119,484		3,950,141
Westwood One Inc.1	133,113		3,920,178
City National Corp.	65,198		3,905,360
Gallagher (Arthur J.) & Co.	119,854		3,903,645
Patterson-UTI Energy Inc.1	110,122		3,899,420
Network Associates Inc.1	215,008		3,870,144
Cognizant Technology Solutions Corp.1	85,088		3,850,232
Health Net Inc.1	151,316		3,772,308
Fairchild Semiconductor International Inc. Class A1	156,788		3,767,616
Equitable Resources Inc.	82,084		3,646,171
Investors Financial Services Corp.	87,776		3,626,904
Apogent Technologies Inc.1	117,870		3,616,252
Silicon Laboratories Inc.1	68,221		3,607,526

SCHEDULES OF INVESTMENTS 41

Schedule of Investments (Continued)

iSHARES^® S&P MIDCAP 400/BARRA GROWTH INDEX FUND

March 31, 2004

Security	Shares	Value
Universal Health Services Inc. Class B	77,172	$	3,555,314
Rent-A-Center Inc.1	107,674		3,552,165
Brown & Brown Inc.	91,390		3,542,276
Hovnanian Enterprises Inc. Class A1	80,867		3,489,411
Eaton Vance Corp.	91,036		3,470,292
JetBlue Airways Corp.1	135,800		3,434,382
Fair Isaac Corp.	93,835		3,385,567
Bank of Hawaii Corp.	72,794		3,372,546
International Speedway Corp. Class A	70,812		3,328,164
Valspar Corp. (The)	67,499		3,322,976
Jacobs Engineering Group Inc.1	74,420		3,319,132
United Dominion Realty Trust Inc.	168,673		3,309,364
Wilmington Trust Corp.	87,803		3,281,198
National Instruments Corp.	104,131		3,275,961
Cypress Semiconductor Corp.1	160,008		3,275,364
Cytyc Corp.1	145,564		3,238,799
Hubbell Inc. Class B	79,462		3,188,810
Cheesecake Factory (The)1	68,746		3,171,253
ADTRAN Inc.	105,256		3,160,838
DPL Inc.	168,299		3,155,606
Education Management Corp.1	96,985		3,087,033
Donaldson Co. Inc.	115,177		3,055,646
Applebee’s International Inc.	73,761		3,050,017
Hunt (J.B.) Transport Services Inc.1	106,614		3,003,316
Certegy Inc.	85,540		2,995,611
Cullen/Frost Bankers Inc.	68,831		2,943,214
O’Reilly Automotive Inc.1	72,134		2,888,245
HON Industries Inc.	77,403		2,876,295
Covance Inc.1	83,368		2,871,194
Ruby Tuesday Inc.	87,589		2,815,986
DeVry Inc.1	93,147		2,808,382
Pier 1 Imports Inc.	117,772		2,791,196
Krispy Kreme Doughnuts Inc.1	81,077		2,784,184
Timberland Co. Class A1	46,331		2,754,378
First Health Group Corp.1	125,372		2,740,632
Harte-Hanks Inc.	116,098		2,719,015
Claire’s Stores Inc.	130,438		2,718,328
Sybase Inc.1	128,456		2,696,291
Waddell & Reed Financial Inc. Class A	109,449		2,683,689
Stericycle Inc.1	55,891		2,674,943
Aqua America Inc.	122,737		2,660,938
Graco Inc.	90,662		2,639,156
Valeant Pharmaceuticals International	110,362		2,634,341
Regis Corp.	58,849		2,615,250
Charles River Laboratories International Inc.1	60,791		2,604,894
Jefferies Group Inc.	73,162		2,584,813
Tootsie Roll Industries Inc.	70,544		2,579,095
Herman Miller Inc.	96,676		2,574,482
Pharmaceutical Resources Inc.1	45,179		2,568,878
Reynolds & Reynolds Co. (The) Class A	88,768		2,521,899
Edwards Lifesciences Corp.1	78,669		2,513,475
Acxiom Corp.	113,317		2,488,441
Integrated Circuit Systems Inc.1	95,760		2,396,873
Steris Corp.1	92,484		2,386,087
FMC Technologies Inc.1	87,736		2,371,504
Church & Dwight Co. Inc.	54,258		2,349,914
99 Cents Only Stores1	95,488		2,331,817
Avocent Corp.1	63,254		2,327,115
Carlisle Companies Inc.	40,880		2,315,852
Western Gas Resources Inc.	45,326		2,304,827
Henry (Jack) & Associates Inc.	118,726		2,286,663
AMETEK Inc.	88,432		2,267,396
Semtech Corp.1	97,770		2,232,089
Plantronics Inc.1	60,844		2,227,499
Westamerica Bancorp	43,252		2,182,496
Titan Corp. (The)1	108,050		2,181,530
Valassis Communications Inc.1	68,953		2,096,171
Integrated Device Technology Inc.1	139,618		2,094,270
RF Micro Devices Inc.1	246,120		2,082,175
Apria Healthcare Group Inc.1	67,618		2,024,483
Gartner Inc. Class A1	171,223		1,994,748
Lancaster Colony Corp.	47,372		1,913,829
ITT Educational Services Inc.1	60,491		1,887,319
Varian Inc.1	46,114		1,852,399
Readers Digest Association Inc. (The)	131,215		1,847,507

42 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® S&P MIDCAP 400/BARRA GROWTH INDEX FUND

March 31, 2004

Security	Shares	Value
Macromedia Inc.1	89,144	$	1,789,120
Nordson Corp.	45,833		1,716,904
Dycom Industries Inc.1	63,917		1,695,079
Olin Corp.	91,645		1,635,863
Micrel Inc.1	122,056		1,629,448
LifePoint Hospitals Inc.1	49,924		1,614,542
Mentor Graphics Corp.1	90,324		1,609,574
Rollins Inc.	59,753		1,539,835
RSA Security Inc.1	79,832		1,500,043
Silicon Valley Bancshares1	46,000		1,492,240
Cabot Microelectronics Corp.1	32,875		1,388,640
Tupperware Corp.	77,503		1,380,328
Catalina Marketing Corp.1	70,866		1,374,092
Cincinnati Bell Inc.1	323,949		1,318,472
VISX Inc.1	64,109		1,251,408
Macrovision Corp.1	64,904		1,212,407
LTX Corp.1	78,802		1,189,910
Transaction Systems Architects Inc. Class A1	50,652		1,172,087
McDATA Corp. Class A1	155,124		1,092,073
Sotheby’s Holdings Inc. Class A1	81,836		1,051,593
Vertex Pharmaceuticals Inc.1	103,070		970,919
Retek Inc.1	72,496		548,070
TOTAL COMMON STOCKS (Cost: $560,285,577)			669,495,133
SHORT-TERM INVESTMENTS – 21.16%
MONEY MARKET FUNDS – 8.27%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares2,3	39,048,609		39,048,609
Barclays Global Investors Funds Prime Money Market Fund, Institutional Shares2,3	12,784,759		12,784,759
BlackRock Temp Cash Money Market Fund2	598,427		598,427
Short-Term Investment Co. – Liquid Assets Money Market Portfolio2	2,980,084		2,980,084
			55,411,879

Security	Principal		Value
FLOATING RATE NOTES – 4.21%
Beta Finance Inc.
1.05%, 05/20/042,4	$	581,125	$	581,114
1.05%, 09/15/042,4		1,162,251		1,162,198
1.06%, 10/12/042,4		581,125		581,095
1.14%, 08/23/042,4		581,125		581,321
CC USA Inc.
1.05%, 04/19/042,4		511,390		511,390
1.06%, 05/24/042,4		1,162,251		1,162,234
1.09%, 07/15/042,4		581,125		581,185
1.51%, 02/15/052,4		755,463		756,514
Dorada Finance Inc.
1.04%, 07/01/042		406,788		405,718
1.05%, 05/20/042,4		1,162,251		1,162,227
1.24%, 08/09/042		290,563		290,547
1.48%, 01/18/052,4		871,688		871,654
Five Finance Inc.
1.06%, 04/15/042,4		581,125		581,126
HBOS Treasury Services PLC
1.10%, 04/22/052		1,162,251		1,162,251
Holmes Financing PLC
1.05%, 04/15/042		116,225		116,225
K2 USA LLC
1.05%, 08/16/042,4		290,563		290,546
1.05%, 09/27/042,4		1,255,231		1,255,139
1.06%, 04/13/042		581,125		581,125
1.06%, 05/17/042		581,125		581,122
1.46%, 01/12/052,4		581,125		581,080
Links Finance LLC
1.05%, 06/28/042		581,125		581,098
1.06%, 05/04/042		581,125		581,123
1.06%, 07/20/042		464,900		464,873
Nationwide Building Society
1.09%, 07/23/042,4		871,688		871,689
1.11%, 12/28/042,4		1,162,251		1,162,251
Northern Rock PLC
1.11%, 01/13/052,4		1,104,138		1,104,138
Permanent Financing PLC
1.04%, 03/10/052		1,162,251		1,162,251
1.05%, 12/10/042		581,125		581,126

SCHEDULES OF INVESTMENTS 43

Schedule of Investments (Continued)

iSHARES^® S&P MIDCAP 400/BARRA GROWTH INDEX FUND

March 31, 2004

Security	Principal		Value
Sigma Finance Inc.
1.05%, 07/01/042	$	581,125	$	581,089
1.06%, 07/20/042		581,125		581,090
1.09%, 10/07/042		1,162,251		1,162,131
1.24%, 08/06/042		290,563		290,553
Tango Finance Corp.
1.05%, 01/18/052,4		511,390		511,349
1.06%, 07/15/042,4		348,675		348,642
1.07%, 02/25/052,4		650,860		650,743
1.10%, 07/06/042,4		348,675		348,666
WhistleJacket Capital LLC
1.05%, 09/15/042,4		581,125		581,072
1.32%, 02/04/052,4		290,563		290,514
White Pine Finance LLC
1.04%, 08/26/042,4		581,125		581,089
1.05%, 11/15/042,4		697,350		697,350
1.06%, 04/20/042,4		581,125		581,126
1.06%, 07/06/042,4		697,350		697,333
				28,207,107
COMMERCIAL PAPER – 3.89%
Alpine Securitization Corp.
1.03%, 04/14/042		546,258		546,055
1.03%, 04/20/042		581,125		580,809
1.03%, 04/23/042		685,728		685,296
1.03%, 04/26/042		581,125		580,710
Amsterdam Funding Corp.
1.03%, 05/05/042		470,712		470,254
Barton Capital Corp.
1.03%, 04/02/042		605,637		605,620
Blue Ridge Asset Funding Corp.
1.02%, 04/23/042		348,675		348,458
1.03%, 05/21/042		581,125		580,294
Corporate Asset Funding
1.05%, 05/21/042		604,370		603,493
Corporate Receivables Corp.
1.03%, 04/07/042		581,125		581,026
1.04%, 06/03/042		1,162,251		1,160,136
Delaware Funding Corp.
1.03%, 04/02/042		581,125		581,109
1.03%, 05/05/042		872,653		871,804
1.03%, 05/21/042		290,563		290,147
Edison Asset Securitization
1.07%, 09/21/042		581,125		578,137
Eureka Securitization Inc.
1.03%, 05/25/042		232,450		232,091
1.04%, 04/14/042		697,350		697,089
Falcon Asset Securitization
1.03%, 04/15/042		698,431		698,152
1.03%, 04/22/042		685,728		685,316
1.03%, 04/30/042		581,125		580,643
Galaxy Funding Inc.
1.05%, 05/17/042		581,125		580,349
Gemini Securitization Corp.
1.03%, 04/20/042		348,908		348,718
1.03%, 04/23/042		671,630		671,207
1.03%, 04/30/042		407,288		406,950
1.03%, 05/24/042		290,563		290,122
1.04%, 04/19/042		290,563		290,412
GIRO Funding US Corp.
1.05%, 05/19/042		290,563		290,156
Jupiter Securitization Corp.
1.03%, 04/16/042		1,162,251		1,161,753
1.03%, 04/19/042		1,569,039		1,568,230
1.03%, 04/28/042		697,350		696,812
1.03%, 04/30/042		989,947		989,126
Liberty Street Funding Corp.
1.04%, 04/08/042		407,206		407,124
1.05%, 04/05/042		470,712		470,657
Polonius Inc.
1.04%, 05/21/042		672,362		671,391
Preferred Receivables Funding Corp.
1.03%, 04/19/042		1,220,363		1,219,735
1.04%, 04/23/042		1,336,588		1,335,739
1.04%, 05/20/042		290,563		290,151
Receivables Capital Corp.
1.04%, 04/14/042		511,390		511,198
Scaldis Capital LLC
1.05%, 06/30/042		416,086		414,994
Thames Asset Global Securitization No. 1 Inc.
1.03%, 04/19/042		581,125		580,826

44 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® S&P MIDCAP 400/BARRA GROWTH INDEX FUND

March 31, 2004

Security	Principal		Value
Thunder Bay Funding Inc.
1.03%, 04/19/042	$	369,654	$	369,463
1.04%, 04/29/042		523,478		523,054
				26,044,806
TIME DEPOSITS – 3.32%
Abbey National Treasury Services PLC
1.08%, 04/01/042		4,067,878		4,067,878
1.33%, 02/10/052		581,125		581,050
1.39%, 02/02/052		581,125		581,053
1.40%, 10/25/042		1,162,251		1,162,152
Bank of New York
1.39%, 11/01/042		1,162,251		1,162,183
Bank of Nova Scotia
1.24%, 10/07/042		871,688		871,643
1.42%, 10/29/042		871,688		871,726
Canadian Imperial Bank of Commerce
1.24%, 10/07/042		871,688		871,620
1.38%, 11/22/042		290,563		290,577
1.40%, 10/29/042		1,162,251		1,162,234
National City Bank (Cleveland, Ohio)
1.02%, 04/01/042		1,743,376		1,743,377
Toronto-Dominion Bank
1.04%, 06/22/042		290,563		290,563
1.22%, 03/23/052		2,033,939		2,033,591
1.34%, 02/10/052		464,900		464,840
1.41%, 11/01/042		871,688		871,637
UBS Finance (Delaware)
1.06%, 04/01/042		2,324,502		2,324,502
1.10%, 09/08/042		1,162,251		1,156,569
1.11%, 12/17/042		1,743,376		1,729,400
				22,236,595
REPURCHASE AGREEMENTS – 1.04%
Bank of America, NA
1.06%, 04/01/042		2,324,502		2,324,502
Goldman, Sachs & Co.
1.08%, 04/01/042		4,649,003		4,649,003
				6,973,505
U.S. GOVERNMENT AGENCY NOTES – 0.43%
Federal Home Loan Mortgage Corporation
1.15%, 05/12/042		871,688		870,546
1.28%, 08/19/042		464,900		462,586
Federal National Mortgage Association
1.28%, 08/20/042		1,510,926		1,503,343
				2,836,475
TOTAL SHORT-TERM INVESTMENTS (Cost: $141,710,367)				141,710,367
TOTAL INVESTMENTS IN SECURITIES – 121.11% (Cost: $701,995,944)				811,205,500
Other Assets, Less Liabilities – (21.11%)				(141,383,748	)
NET ASSETS – 100.00%			$	669,821,752

¹ Non-income earning securities.

² All or a portion of this security represents investments of securities lending collateral.

³ Issuer is an affiliate of the Fund’s investment advisor. See Note 2.

⁴ Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

See notes to financial statements

SCHEDULES OF INVESTMENTS 45

Schedule of Investments

iSHARES^® S&P MIDCAP 400/BARRA VALUE INDEX FUND

March 31, 2004

Security	Shares	Value
COMMON STOCKS – 99.91%
D.R. Horton Inc.	515,360	$	18,259,205
Valero Energy Corp.	281,431		16,874,603
Sovereign Bancorp Inc.	675,986		14,479,620
Fidelity National Financial Inc.	361,183		14,302,847
Tyson Foods Inc. Class A	780,895		14,095,155
L-3 Communications Holdings Inc.	233,305		13,876,981
National Commerce Financial Corp.	454,012		12,989,283
GreenPoint Financial Corp.	295,346		12,909,574
Banknorth Group Inc.	360,638		12,276,118
Weatherford International Ltd.1	290,803		12,222,450
Mohawk Industries Inc.1	147,592		12,154,201
Dean Foods Co.1	345,567		11,541,938
Millennium Pharmaceuticals Inc.1	667,297		11,277,319
Everest Re Group Ltd.	122,828		10,494,424
Omnicare Inc.	226,882		10,057,679
Old Republic International Corp.	401,530		9,861,577
Republic Services Inc.	350,853		9,497,591
ENSCO International Inc.	334,322		9,417,851
Lear Corp.	151,574		9,391,525
Telephone & Data Systems Inc.	127,218		9,015,940
Radian Group Inc.	207,963		8,859,224
Caesars Entertainment Inc.1	671,244		8,753,022
SCANA Corp.	245,247		8,669,481
Pioneer Natural Resources Co.	264,325		8,537,697
Wisconsin Energy Corp.	262,544		8,440,790
Liberty Property Trust	185,182		8,333,190
Leucadia National Corp.	154,247		8,218,280
Energy East Corp.	323,458		8,202,895
Hibernia Corp. Class A	343,728		8,074,171
PMI Group Inc. (The)	207,797		7,763,296
Pepco Holdings Inc.	379,581		7,758,636
SPX Corp.	167,076		7,598,616
Vishay Intertechnology Inc.1	355,362		7,583,425
Mercantile Bankshares Corp.	176,336		7,577,158
Constellation Brands Inc.1	234,487		7,527,033
Toll Brothers Inc.1	162,393		7,377,514
Berkley (W.R.) Corp.	184,679		7,364,999
PacifiCare Health Systems Inc.1	185,051		7,318,767
Associated Bancorp	162,331		7,270,806
Harris Corp.	147,811		7,155,531
Belo (A.H.) Corp.	256,279		7,114,305
Edwards (A.G.) Inc.	177,403		6,940,005
Intersil Corp. Class A	307,717		6,859,012
Hospitality Properties Trust	147,477		6,842,933
Storage Technology Corp.1	245,012		6,818,684
ALLETE Inc.	192,532		6,755,948
AMB Property Corp.	181,053		6,729,740
Questar Corp.	183,926		6,702,263
Astoria Financial Corp.	175,848		6,687,499
Smithfield Foods Inc.1	245,180		6,649,282
PepsiAmericas Inc.	323,030		6,596,273
Ceridian Corp.1	330,880		6,521,645
Avnet Inc.1	266,108		6,516,985
Pogo Producing Co.	141,333		6,482,945
Pentair Inc.	109,358		6,452,122
Unitrin Inc.	150,250		6,445,725
Alliant Energy Corp.	245,216		6,390,329
Arrow Electronics Inc.1	249,202		6,344,683
Peabody Energy Corp.	136,002		6,325,453
Precision Castparts Corp.	143,107		6,301,001
MDU Resources Group Inc.	258,577		6,073,974
Community Health Systems Inc.1	218,140		6,070,836
New Plan Excel Realty Trust	220,374		6,027,229
3Com Corp.1	847,390		5,982,573
Mack-Cali Realty Corp.	133,074		5,976,353
NSTAR	117,457		5,957,419
Newfield Exploration Co.1	124,073		5,946,819
AmeriCredit Corp.1	347,918		5,925,044
Noble Energy Inc.	125,694		5,920,187
Smucker (J.M.) Co. (The)	110,853		5,850,821
Neiman-Marcus Group Inc. Class A	108,352		5,844,507
Lyondell Chemical Co.	391,667		5,812,338
Protective Life Corp.	152,628		5,715,919
Bowater Inc.	122,695		5,353,183
National-Oilwell Inc.1	188,390		5,327,669
Saks Inc.1	302,446		5,323,050
First American Corp.	173,270		5,270,873
Packaging Corporation of America	233,515		5,268,098
Cooper Cameron Corp.1	119,588		5,267,851
Northeast Utilities	282,096		5,261,090
Sonoco Products Co.	216,177		5,248,778

46 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® S&P MIDCAP 400/BARRA VALUE INDEX FUND

March 31, 2004

Security	Shares	Value
CheckFree Corp.1	177,093	$	5,217,160
Colonial BancGroup Inc. (The)	281,383		5,205,585
Great Plains Energy Inc.	153,388		5,182,981
Tech Data Corp.1	126,177		5,165,686
Entercom Communications Corp.1	114,042		5,162,681
BorgWarner Inc.	60,745		5,152,998
Triad Hospitals Inc.1	166,832		5,141,762
Pride International Inc.1	300,417		5,125,114
Webster Financial Corp.	101,032		5,123,333
ONEOK Inc.	226,374		5,104,734
OGE Energy Corp.	192,503		5,089,779
Martin Marietta Materials Inc.	108,370		5,002,359
Protein Design Labs Inc.1	207,579		4,944,532
Barnes & Noble Inc.1	150,896		4,919,210
Independence Community Bank Corp.	120,496		4,910,212
FirstMerit Corp.	187,719		4,890,080
Ryland Group Inc.	54,759		4,846,171
American Financial Group Inc.	161,682		4,822,974
Activision Inc.1	299,088		4,731,572
Rayonier Inc. REIT	108,219		4,730,253
Viad Corp.	195,697		4,729,996
Puget Energy Inc.	208,680		4,668,172
Polycom Inc.1	219,670		4,663,594
Scotts Co. (The) Class A1	71,733		4,601,672
HCC Insurance Holdings Inc.	141,304		4,568,358
Hawaiian Electric Industries Inc.	88,016		4,562,749
Lee Enterprises Inc.	99,515		4,496,088
Cabot Corp.	136,737		4,484,974
IndyMac Bancorp Inc.	123,137		4,468,642
BISYS Group Inc. (The)1	266,513		4,466,758
National Fuel Gas Co.	181,108		4,455,257
Washington Federal Inc.	173,731		4,435,352
Provident Financial Group Inc.	108,270		4,348,123
CBRL Group Inc.	109,576		4,343,593
Teleflex Inc.	87,908		4,327,711
AnnTaylor Stores Corp.1	100,214		4,289,159
Copart Inc.1	197,002		4,280,853
American Eagle Outfitters Inc.1	157,621		4,249,462
RPM International Inc.	256,386		4,240,624
Advanced Fibre Communications Inc.1	192,474		4,240,202
StanCorp Financial Group Inc.	64,657		4,218,869
Grant Prideco Inc.1	268,852		4,167,206
Extended Stay America Inc.	214,995		4,164,453
AGL Resources Inc.	143,013		4,150,237
Vectren Corp.	167,826		4,140,267
Harsco Corp.	90,457		4,115,793
Borders Group Inc.	173,112		4,109,679
Allmerica Financial Corp.1	117,436		4,057,414
Raymond James Financial Inc.	162,315		4,033,515
Furniture Brands International Inc.	123,510		3,977,022
BJ’s Wholesale Club Inc.1	154,511		3,932,305
Varco International Inc.1	216,101		3,891,979
Westar Energy Inc.	183,715		3,850,666
WPS Resources Corp.	80,130		3,830,214
Tidewater Inc.	134,131		3,773,105
CNF Inc.	110,101		3,699,394
Arch Coal Inc.	116,585		3,659,603
IMC Global Inc.	254,856		3,644,441
Cree Inc.1	163,275		3,641,032
Lubrizol Corp.	114,248		3,597,670
Media General Inc. Class A	52,094		3,504,884
AmerUs Group Co.	86,747		3,500,241
York International Corp.	88,729		3,487,937
AGCO Corp.1	166,953		3,457,597
Airgas Inc.	162,239		3,455,691
Greater Bay Bancorp	117,099		3,425,146
Sylvan Learning Systems Inc.1	96,480		3,387,413
FMC Corp.1	78,137		3,345,826
Werner Enterprises Inc.	176,132		3,337,701
Boyd Gaming Corp.	144,859		3,315,822
Kennametal Inc.	80,281		3,313,197
Brink’s Co. (The)	120,128		3,313,130
Blyth Inc.	100,619		3,287,223
MONY Group Inc. (The)1	104,476		3,284,725
Duquesne Light Holdings Inc.	166,737		3,251,371
WGL Holdings Inc.	107,704		3,241,890
Helmerich & Payne Inc.	111,164		3,184,849
Swift Transportation Co. Inc.1	185,137		3,178,802
Callaway Golf Co.	167,303		3,175,411

SCHEDULES OF INVESTMENTS 47

Schedule of Investments (Continued)

iSHARES^® S&P MIDCAP 400/BARRA VALUE INDEX FUND

March 31, 2004

Security	Shares	Value
Overseas Shipholding Group Inc.	86,917	$	3,172,470
Perrigo Co.	155,269		3,113,143
Cytec Industries Inc.	86,701		3,083,955
Highwoods Properties Inc.	117,639		3,083,318
Alexander & Baldwin Inc.	92,587		3,062,778
ArvinMeritor Inc.	153,470		3,043,310
United Rentals Inc.1	170,599		3,031,544
Forest Oil Corp.1	118,213		2,984,878
Imation Corp.	78,252		2,943,840
Emmis Communications Corp.1	122,562		2,918,201
Trinity Industries Inc.	103,746		2,884,139
Ascential Software Corp.1	131,524		2,883,006
Universal Corp.	55,667		2,828,997
KEMET Corp.1	191,394		2,744,590
Ohio Casualty Corp.1	134,916		2,696,971
PNM Resources Inc.	89,116		2,677,936
Albemarle Corp.	91,708		2,659,532
Banta Corp.	56,565		2,618,394
Potlatch Corp.	63,657		2,594,023
Minerals Technologies Inc.	45,109		2,575,724
MPS Group Inc.1	231,219		2,571,155
Flowserve Corp.1	122,354		2,563,316
IDACORP Inc.	84,494		2,526,371
Bob Evans Farms Inc.	76,738		2,489,381
GATX Corp.	108,853		2,413,271
Ferro Corp.	91,392		2,389,901
Scholastic Corp.1	87,270		2,378,107
Kelly Services Inc. Class A	76,991		2,279,704
Black Hills Corp.	71,210		2,269,463
Keane Inc.1	141,831		2,232,420
Granite Construction Inc.	91,958		2,185,842
CommScope Inc.1	131,223		2,184,863
Lattice Semiconductor Corp.1	249,690		2,179,794
TriQuint Semiconductor Inc.1	298,599		2,179,773
Bandag Inc.	42,889		2,134,586
Federal Signal Corp.	106,728		2,118,551
Payless ShoeSource Inc.1	151,369		2,113,111
Superior Industries International Inc.	59,504		2,108,822
Ruddick Corp.	103,099		2,086,724
Aquila Inc.1	432,103		2,035,205
CSG Systems International Inc.1	116,418		2,000,061
Modine Manufacturing Co.	75,984		1,980,143
Hanover Compressor Co.1	162,928		1,969,800
Wind River Systems Inc.1	177,812		1,968,379
Internet Security Systems Inc.1	110,231		1,944,475
Sensient Technologies Corp.	103,332		1,929,208
Sierra Pacific Resources1	259,444		1,919,886
Price Communications Corp.1	119,744		1,878,783
Quanta Services Inc.1	258,108		1,827,405
Tecumseh Products Co. Class A	40,915		1,722,521
Plexus Corp.1	95,325		1,695,832
Credence Systems Corp.1	142,224		1,689,621
Six Flags Inc.1	205,051		1,609,650
Crompton Corp.	246,324		1,571,547
Longs Drug Stores Corp.	83,339		1,569,273
Horace Mann Educators Corp.	94,583		1,486,845
LaBranche & Co. Inc.	132,372		1,483,890
Quantum Corp.1	399,308		1,477,440
Alaska Air Group Inc.1	59,129		1,458,121
Newport Corp.1	86,333		1,443,488
Advent Software Inc.1	72,881		1,362,875
Korn/Ferry International1	83,290		1,332,640
Longview Fibre Co.	113,075		1,261,917
Sequa Corp. Class A1	23,109		1,141,585
Interstate Bakeries Corp.	99,286		1,128,882
Powerwave Technologies Inc.1	140,032		1,092,250
Glatfelter Co.	96,887		1,089,010
TOTAL COMMON STOCKS (Cost: $970,268,418)			1,132,852,726
SHORT-TERM INVESTMENTS – 20.50%
MONEY MARKET FUNDS – 7.78%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares2,3	60,943,286		60,943,286
Barclays Global Investors Funds Prime Money Market Fund, Institutional Shares2,3	21,359,370		21,359,370
BlackRock Temp Cash Money Market Fund2	999,787		999,787

48 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® S&P MIDCAP 400/BARRA VALUE INDEX FUND

March 31, 2004

Security	Shares or Principal		Value
Short-Term Investment Co. – Liquid Assets Money Market Portfolio2		4,978,796	$	4,978,796
				88,281,239
FLOATING RATE NOTES – 4.15%
Beta Finance Inc.
1.05%, 05/20/042,4	$	970,880		970,861
1.05%, 09/15/042,4		1,941,761		1,941,672
1.06%, 10/12/042,4		970,880		970,830
1.14%, 08/23/042,4		970,880		971,208
CC USA Inc.
1.05%, 04/19/042,4		854,375		854,373
1.06%, 05/24/042,4		1,941,761		1,941,733
1.09%, 07/15/042,4		970,880		970,981
1.51%, 02/15/052,4		1,262,145		1,263,901
Dorada Finance Inc.
1.04%, 07/01/042		679,616		677,830
1.05%, 05/20/042,4		1,941,761		1,941,722
1.24%, 08/09/042		485,440		485,414
1.48%, 01/18/052,4		1,456,321		1,456,263
Five Finance Inc.
1.06%, 04/15/042,4		970,880		970,880
HBOS Treasury Services PLC
1.10%, 04/22/052		1,941,761		1,941,761
Holmes Financing PLC
1.05%, 04/15/042		194,176		194,176
K2 USA LLC
1.05%, 08/16/042,4		485,440		485,413
1.05%, 09/27/042,4		2,097,102		2,096,948
1.06%, 04/13/042		970,880		970,879
1.06%, 05/17/042		970,880		970,874
1.46%, 01/12/052,4		970,880		970,805
Links Finance LLC
1.05%, 06/28/042		970,880		970,834
1.06%, 05/04/042		970,880		970,877
1.06%, 07/20/042		776,704		776,658
Nationwide Building Society
1.09%, 07/23/042,4		1,456,321		1,456,321
1.11%, 12/28/042,4		1,941,761		1,941,761
Northern Rock PLC
1.11%, 01/13/052,4		1,844,673		1,844,673
Security	Principal		Value
Permanent Financing PLC
1.04%, 03/10/052	$	1,941,761	$	1,941,761
1.05%, 12/10/042		970,880		970,880
Sigma Finance Inc.
1.05%, 07/01/042		970,880		970,820
1.06%, 07/20/042		970,880		970,822
1.09%, 10/07/042		1,941,761		1,941,560
1.24%, 08/06/042		485,440		485,423
Tango Finance Corp.
1.05%, 01/18/052,4		854,375		854,306
1.06%, 07/15/042,4		582,528		582,473
1.07%, 02/25/052,4		11,087,386		1,087,190
1.10%, 07/06/042,4		582,528		582,513
WhistleJacket Capital LLC
1.05%, 09/15/042,4		970,880		970,792
1.32%, 02/04/052,4		485,440		485,358
White Pine Finance LLC
1.04%, 08/26/042,4		970,880		970,820
1.05%, 11/15/042,4		1,165,057		1,165,057
1.06%, 04/20/042,4		970,880		970,880
1.06%, 07/06/042,4		1,165,057		1,165,027
				47,125,330
COMMERCIAL PAPER – 3.84%
Alpine Securitization Corp.
1.03%, 04/14/042		912,628		912,288
1.03%, 04/20/042		970,880		970,353
1.03%, 04/23/042		1,145,639		1,144,918
1.03%, 04/26/042		970,880		970,186
Amsterdam Funding Corp.
1.03%, 05/05/042		786,413		785,648
Barton Capital Corp.
1.03%, 04/02/042		1,011,832		1,011,803
Blue Ridge Asset Funding Corp.
1.02%, 04/23/042		582,528		582,165
1.03%, 05/21/042		970,880		969,492
Corporate Asset Funding
1.05%, 05/21/042		1,009,716		1,008,250
Corporate Receivables Corp.
1.03%, 04/07/042		970,880		970,714
1.04%, 06/03/042		1,941,761		1,938,227

SCHEDULES OF INVESTMENTS 49

Schedule of Investments (Continued)

iSHARES^® S&P MIDCAP 400/BARRA VALUE INDEX FUND

March 31, 2004

Security	Principal		Value
Delaware Funding Corp.
1.03%, 04/02/042	$	970,880	$	970,853
1.03%, 05/05/042		1,457,932		1,456,514
1.03%, 05/21/042		485,440		484,746
Edison Asset Securitization
1.07%, 09/21/042		970,880		965,888
Eureka Securitization Inc.
1.03%, 05/25/042		388,352		387,752
1.04%, 04/14/042		1,165,057		1,164,619
Falcon Asset Securitization
1.03%, 04/15/042		1,166,862		1,166,395
1.03%, 04/22/042		1,145,639		1,144,951
1.03%, 04/30/042		970,880		970,075
Galaxy Funding Inc.
1.05%, 05/17/042		970,880		969,584
Gemini Securitization Corp.
1.03%, 04/20/042		582,917		582,600
1.03%, 04/23/042		1,122,085		1,121,379
1.03%, 04/30/042		680,451		679,887
1.03%, 05/24/042		485,440		484,705
1.04%, 04/19/042		485,440		485,188
GIRO Funding US Corp.
1.05%, 05/19/042		485,440		484,761
Jupiter Securitization Corp.
1.03%, 04/16/042		1,941,761		1,940,928
1.03%, 04/19/042		2,621,377		2,620,028
1.03%, 04/28/042		1,165,057		1,164,157
1.03%, 04/30/042		1,653,895		1,652,523
Liberty Street Funding Corp.
1.04%, 04/08/042		680,315		680,178
1.05%, 04/05/042		786,413		786,321
Polonius Inc.
1.04%, 05/21/042		1,123,309		1,121,686
Preferred Receivables Funding Corp.
1.03%, 04/19/042		2,038,849		2,037,799
1.04%, 04/23/042		2,233,025		2,231,606
1.04%, 05/20/042		485,440		484,753
Receivables Capital Corp.
1.04%, 04/14/042		854,375		854,054
Scaldis Capital LLC
1.05%, 06/30/042		695,150		693,326
Thames Asset Global Securitization No. 1 Inc.
1.03%, 04/19/042		970,880		970,380
Thunder Bay Funding Inc.
1.03%, 04/19/042		617,577		617,259
1.04%, 04/29/042		874,569		873,862
				43,512,801
TIME DEPOSITS – 3.28%
Abbey National Treasury Services PLC
1.08%, 04/01/042		6,796,163		6,796,163
1.33%, 02/10/052		970,880		970,755
1.39%, 02/02/052		970,880		970,758
1.40%, 10/25/042		1,941,761		1,941,596
Bank of New York
1.39%, 11/01/042		1,941,761		1,941,648
Bank of Nova Scotia
1.24%, 10/07/042		1,456,321		1,456,245
1.42%, 10/29/042		1,456,321		1,456,384
Canadian Imperial Bank of Commerce
1.24%, 10/07/042		1,456,321		1,456,207
1.38%, 11/22/042		485,440		485,464
1.40%, 10/29/042		1,941,761		1,941,733
National City Bank (Cleveland, Ohio)
1.02%, 04/01/042		2,912,641		2,912,641
Toronto-Dominion Bank
1.04%, 06/22/042		485,440		485,440
1.22%, 03/23/052		3,398,082		3,397,501
1.34%, 02/10/052		776,704		776,604
1.41%, 11/01/042		1,456,321		1,456,235
UBS Finance (Delaware)
1.06%, 04/01/042		3,883,522		3,883,522
1.10%, 09/08/042		1,941,761		1,932,268
1.11%, 12/17/042		2,912,641		2,889,292
				37,150,456

50 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® S&P MIDCAP 400/BARRA VALUE INDEX FUND

March 31,2004

Security	Principal		Value
REPURCHASE AGREEMENTS – 1.03%
Bank of America, NA
1.06%, 04/01/042	$	3,883,522	$	3,883,522
Goldman, Sachs & Co.
1.08%, 04/01/042		7,767,044		7,767,044
				11,650,566
U.S. GOVERNMENT AGENCY NOTES – 0.42%
Federal Home Loan Mortgage Corporation
1.15%, 05/12/042		1,456,321		1,454,413
1.28%, 08/19/042		776,704		772,838
Federal National Mortgage Association
1.28%, 08/20/042		2,524,289		2,511,625
				4,738,876
TOTAL SHORT-TERM INVESTMENTS (Cost: $232,459,268)				232,459,268
TOTAL INVESTMENTS IN SECURITIES – 120.41% (Cost: $1,202,727,686)				1,365,311,994
OTHER ASSETS, LESS LIABILITIES – (20.41%)				(231,405,375	)
NET ASSETS - 100.00%			$	1,133,906,619

¹ Non-income earning securities.

² All or a portion of this security represents investments of securities lending collateral.

³ Issuer is an affiliate of the Fund’s investment advisor. See Note 2.

⁴ Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 51

Schedule of Investments

iSHARES^® S&P SMALLCAP 600 INDEX FUND

March 31, 2004

Security	Shares	Value
COMMON STOCKS – 99.94%
NVR Inc.1	31,828	$	14,640,880
NBTY Inc.1	325,922		12,117,780
Fremont General Corp.	370,939		11,350,733
M.D.C. Holdings Inc.	158,783		11,178,302
Medicis Pharmaceutical Corp. Class A	271,677		10,867,080
MGI Pharma Inc.1	171,167		10,485,690
Alliant Techsystems Inc.1	189,090		10,286,496
Renal Care Group Inc.1	221,936		10,155,791
Timken Co. (The)	436,511		10,140,151
Polaris Industries Inc.	212,780		9,668,723
IDEXX Laboratories Inc.1	169,523		9,640,773
Standard-Pacific Corp.	160,359		9,621,540
Oshkosh Truck Corp.	171,223		9,537,121
Pacific Sunwear of California Inc.1	382,343		9,382,697
Urban Outfitters Inc.1	193,641		9,306,386
INAMED Corp.1	171,182		9,120,577
Respironics Inc.1	167,972		9,073,847
Accredo Health Inc.1	235,336		8,966,302
Shurgard Storage Centers Inc. Class A	222,944		8,895,466
Florida Rock Industries Inc.	210,560		8,875,104
UCBH Holdings Inc.	219,983		8,808,119
Patina Oil & Gas Corp.	333,367		8,750,884
South Financial Group Inc. (The)	288,221		8,528,459
Skyworks Solutions Inc.1	728,282		8,491,768
Roper Industries Inc.	175,942		8,489,202
Cooper Companies Inc.	156,729		8,463,366
Tom Brown Inc.1	222,737		8,374,911
New Century Financial Corp.	172,049		8,354,699
Hudson United Bancorp	218,878		8,328,308
Global Payments Inc.	184,111		8,299,724
Whitney Holding Corp.	197,301		8,235,344
TECHNE Corp.1	200,677		8,189,628
Pharmaceutical Product Development Inc.1	274,428		8,175,210
First Bancorp	195,460		8,131,136
Massey Energy Co.	368,073		8,123,371
UGI Corp.	246,242		8,106,287
Pep Boys-Manny, Moe & Jack Inc.	289,074		8,021,804
Take-Two Interactive Software Inc.1	217,775		8,009,765
Piedmont Natural Gas Co.	185,881		7,847,896
Yellow Roadway Corp.1	232,534		7,829,420
Zale Corp.1	127,088		7,822,266
Cerner Corp.1	173,067		7,820,898
First Midwest Bancorp Inc.	227,538		7,768,147
Linens ‘n Things Inc.1	218,685		7,743,636
Hyperion Solutions Corp.1	186,292		7,721,803
Performance Food Group Co.1	223,859		7,689,557
Hughes Supply Inc.	146,155		7,658,522
Fossil Inc.1	227,353		7,582,223
Flagstar Bancorp Inc.	295,332		7,575,266
Ethan Allen Interiors Inc.	182,155		7,515,715
Thor Industries Inc.	279,641		7,511,157
ResMed Inc.1	164,183		7,419,430
Varian Semiconductor Equipment Associates Inc.1	176,049		7,394,058
Toro Co.	119,147		7,387,114
Briggs & Stratton Corp.	109,121		7,362,394
Essex Property Trust Inc.	111,330		7,292,115
Energen Corp.	176,572		7,283,595
Pediatrix Medical Group Inc.1	114,902		7,238,826
Evergreen Resources Inc.1	210,165		7,219,168
Downey Financial Corp.	136,441		7,217,729
Staten Island Bancorp Inc.	287,080		7,142,550
Cognex Corp.	213,932		7,113,239
Tractor Supply Co.1	182,207		7,055,055
Corn Products International Inc.	176,360		7,054,400
FactSet Research Systems Inc.	165,324		7,036,189
MAF Bancorp Inc.	161,176		7,004,709
Idex Corp.	160,751		6,989,453
United Stationers Inc.1	164,977		6,945,532
Avid Technology Inc.1	150,106		6,924,390
Invacare Corp.	151,612		6,843,766
AptarGroup Inc.	178,061		6,837,542
Cymer Inc.1	176,209		6,803,429
Southern Union Co.1	357,056		6,766,211
Hilb, Rogal & Hamilton Co.	175,639		6,691,846
East West Bancorp Inc.	118,666		6,645,296
Sonic Corp.1	192,508		6,599,174
CEC Entertainment Inc.1	189,146		6,563,349

52 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® S&P SMALLCAP 600 INDEX FUND

March 31, 2004

Security	Shares	Value
United Bancshares Inc.	214,846	$	6,552,803
Atmos Energy Corp.	253,299		6,476,855
SCP Pool Corp.1	173,453		6,462,859
Mentor Corp.	213,874		6,437,607
Stone Energy Corp.1	128,936		6,377,175
Delphi Financial Group Inc. Class A	151,175		6,352,373
Southwest Bancorp of Texas Inc.	167,493		6,319,511
P.F. Chang’s China Bistro Inc.1	124,408		6,258,966
Benchmark Electronics Inc.1	198,681		6,254,478
Philadelphia Consolidated Holding Corp.1	107,397		6,229,026
WebEx Communications Inc.1	208,785		6,207,178
Hot Topic Inc.1	233,746		6,182,582
Flir Systems Inc.1	161,845		6,169,531
Engineered Support Systems Inc.	126,359		6,165,056
CACI International Inc. Class A1	142,270		6,117,610
Diagnostic Products Corp.	140,824		6,097,679
US Oncology Inc.1	411,261		6,078,438
Capital Automotive	171,901		6,069,824
Arbitron Inc.1	150,674		6,066,135
Quiksilver Inc.1	272,034		5,943,943
Landstar System Inc.1	145,017		5,936,996
Chittenden Corp.	179,407		5,920,431
Community First Bankshares Inc.	183,364		5,893,319
Cimarex Energy Co.1	203,426		5,879,011
Spinnaker Exploration Co.1	162,559		5,839,119
Unit Corporation1	212,888		5,837,389
Steel Dynamics Inc.1	235,028		5,823,994
Simpson Manufacturing Co. Inc.1	118,568		5,803,904
Mueller Industries Inc.	170,594		5,798,490
Flowers Foods Inc.	220,687		5,790,827
Tetra Tech Inc.1	266,955		5,728,854
Panera Bread Co. Class A1	147,125		5,726,105
Commercial Federal Corp.	205,996		5,685,490
La-Z-Boy Inc.	256,906		5,590,275
Heartland Express Inc.	244,281		5,564,721
Trimble Navigation Ltd.1	242,214		5,553,967
Waste Connections Inc.1	139,138		5,537,692
Reliance Steel & Aluminum Co.	156,525		5,501,854
Dionex Corp.1	104,016		5,492,045
Kroll Inc.1	204,178		5,482,179
CLARCOR Inc.	123,651		5,459,192
SkyWest Inc.	282,646		5,438,109
AMERIGROUP Corp.1	118,932		5,435,192
Axcelis Technologies Inc.1	483,406		5,375,475
Lennox International Inc.	287,382		5,330,936
Colonial Properties Trust	127,982		5,221,666
MacDermid Inc.	147,954		5,206,501
Winnebago Industries Inc.	165,549		5,160,162
Kellwood Co.	130,587		5,125,540
Sybron Dental Specialties Inc.1	187,678		5,114,226
Piper Jaffray Companies Inc.1	94,154		5,098,439
Argosy Gaming Co.1	143,217		5,091,364
New Jersey Resources Corp.	134,120		5,069,736
Gables Residential Trust	139,207		5,046,254
Lexington Corp. Properties Trust	230,576		5,024,251
Anixter International Inc.	177,057		5,001,860
Susquehanna Bancshares Inc.	194,597		4,987,521
Alpharma Inc. Class A	253,673		4,974,528
Sierra Health Services Inc.1	135,182		4,920,625
Kronos Inc.1	151,016		4,912,551
TrustCo Bank Corp. NY	363,771		4,896,358
Acuity Brands Inc.	204,981		4,894,946
FileNET Corp.1	183,502		4,890,328
CARBO Ceramics Inc.	77,588		4,884,165
Aeroflex Inc.1	362,308		4,876,666
Kilroy Realty Corp.	137,044		4,865,062
Cabot Oil & Gas Corp.	158,757		4,851,614
Owens & Minor Inc.	191,302		4,839,941
Maverick Tube Corp.1	205,001		4,827,774
Georgia Gulf Corp.	160,086		4,826,593
Commercial Net Lease Realty Inc.	244,305		4,825,024
Men’s Wearhouse Inc. (The)1	181,417		4,820,250
Commonwealth Telephone Enterprises Inc.1	117,095		4,802,066
CAL Dive International Inc.1	184,365		4,762,148
Meritage Corp.1	64,098		4,759,276
ADVO Inc.	147,407		4,749,454
RLI Corp.	123,012		4,748,263
Curtiss-Wright Corp.	101,197		4,743,103
NDCHealth Corp.	174,447		4,736,236

SCHEDULES OF INVESTMENTS 53

Schedule of Investments (Continued)

iSHARES^® S&P SMALLCAP 600 INDEX FUND

March 31, 2004

Security	Shares	Value
URS Corp.1	164,223	$	4,726,338
Black Box Corp.	88,054		4,718,814
Wintrust Financial Corp.	96,287		4,682,437
Selective Insurance Group Inc.	133,395		4,678,163
Adaptec Inc.1	533,011		4,669,176
Wolverine World Wide Inc.	192,545		4,646,111
Delta & Pine Land Co.	186,052		4,641,997
Fred’s Inc.	191,002		4,635,619
St. Mary Land & Exploration Co.	138,469		4,629,019
Vintage Petroleum Inc.	314,012		4,603,416
United Natural Foods Inc.1	95,505		4,592,835
USF Corp.	133,998		4,585,412
Brookline Bancorp Inc.	287,388		4,583,839
Rare Hospitality International Inc.1	164,467		4,563,959
Armor Holdings Inc.1	137,663		4,556,645
Brooks Automation Inc.1	217,159		4,555,996
United Surgical Partners International Inc.1	133,984		4,547,417
Select Comfort Corp.1	164,384		4,535,355
WMS Industries Inc.1	145,919		4,523,489
Priority Healthcare Corp. Class B1	212,269		4,519,207
Avista Corp.	236,064		4,466,331
Cost Plus Inc.1	106,579		4,449,673
Commercial Metals Co.	139,233		4,433,179
Jack in the Box Inc.1	177,294		4,427,031
Waypoint Financial Corp.	164,493		4,411,702
Knight Transportation Inc.1	183,290		4,395,294
Cleco Corp.	230,922		4,394,446
Insight Enterprises Inc.1	227,530		4,379,952
Albany International Corp. Class A	162,706		4,375,164
Brady Corp. Class A	114,745		4,369,490
Republic Bancorp Inc.	310,397		4,364,182
BankUnited Financial Corp. Class A1	146,109		4,339,437
Moog Inc. Class A1	127,019		4,333,888
Ralcorp Holdings Inc.1	142,112		4,324,468
Guitar Center Inc.1	116,359		4,321,573
Power Integrations Inc.1	147,262		4,319,194
Burlington Coat Factory Warehouse Corp.	217,786		4,312,163
American Medical Systems Holdings Inc.1	161,583		4,281,949
ABM Industries Inc.	237,128		4,256,448
K-Swiss Inc. Class A	173,212		4,238,498
Southwestern Energy Co.1	175,699		4,237,860
Rogers Corp.1	79,062		4,219,539
Kansas City Southern Industries Inc.1	303,307		4,215,967
Seacoast Financial Services Corp.	125,765		4,213,128
Harland (John H.) Co.	135,380		4,213,026
OM Group Inc.1	138,548		4,211,859
CONMED Corp.1	141,939		4,192,878
Headwaters Inc.1	162,231		4,156,358
EGL Inc.1	231,345		4,154,956
Smith (A.O.) Corp.	143,087		4,142,369
Progress Software Corp.1	172,184		4,130,694
LandAmerica Financial Group Inc.	90,995		4,118,434
InVision Technologies Inc.1	82,669		4,106,169
Aztar Corp.1	167,455		4,104,322
Manhattan Associates Inc.1	146,346		4,068,419
Integra LifeSciences Holdings Corp.1	132,656		4,061,927
MICROS Systems Inc.1	89,750		4,052,212
Casey’s General Store Inc.	243,653		4,044,640
Watson Wyatt & Co. Holdings1	160,179		4,042,918
UniSource Energy Corp.	164,544		4,042,846
Children’s Place Retail Stores Inc. (The)1	130,531		4,042,545
Veeco Instruments Inc.1	143,122		4,014,572
Landry’s Restaurants Inc.	134,581		4,014,551
Group 1 Automotive Inc.1	110,844		4,012,553
Kirby Corp.1	118,511		4,004,487
Aaron Rents Inc.	160,056		3,983,794
ATMI Inc.1	151,308		3,982,427
American Management Systems Inc.1	207,173		3,977,722
Fuller (H.B.) Co.	139,240		3,959,986
Microsemi Corp.1	288,932		3,952,590
Northwest Natural Gas Co.	126,354		3,948,563
SERENA Software Inc.1	191,822		3,903,578
Christopher & Banks Corp.	184,702		3,899,059

54 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® S&P SMALLCAP 600 INDEX FUND

March 31, 2004

Security	Shares	Value
Southwest Gas Corp.	166,311	$	3,891,677
Coherent Inc.1	146,956		3,863,473
Manitowoc Co. Inc. (The)	129,834		3,840,490
Wabash National Corp.1	162,660		3,838,776
FirstFed Financial Corp.1	83,132		3,834,879
Haemonetics Corp.1	121,651		3,825,924
Dime Community Bancshares	187,673		3,819,146
American Healthways Inc.1	156,377		3,818,726
Hain Celestial Group Inc.1	172,830		3,817,815
Monaco Coach Corp.	142,163		3,809,968
Kaydon Corp.	137,885		3,795,974
G&K Services Inc. Class A	101,876		3,791,825
Province Healthcare Co.1	238,113		3,785,997
CH Energy Group Inc.	77,019		3,780,863
eFunds Corp.1	230,122		3,774,001
THQ Inc.1	185,976		3,762,295
Provident Bankshares Corp.	119,849		3,760,862
Wilson Greatbatch Technologies Inc.1	103,489		3,754,581
Seacor Holdings Inc.1	91,332		3,751,919
MAXIMUS Inc.1	106,958		3,743,530
Shuffle Master Inc.1	80,513		3,743,049
Texas Industries Inc.	103,118		3,727,716
CUNO Inc.1	82,674		3,710,409
Technitrol Inc.1	196,820		3,700,216
Inter-Tel Inc.	123,088		3,700,025
Irwin Financial Corp.	137,078		3,698,364
Exar Corp.1	199,807		3,696,429
Watsco Inc.	127,301		3,691,729
DRS Technologies Inc.1	131,719		3,685,498
Baldor Electric Co.	160,216		3,681,764
Regeneron Pharmaceuticals Inc.1	270,227		3,669,683
Sterling Financial Corp. (Washington)1	99,172		3,658,455
Oxford Industries Inc.	79,117		3,654,414
Sola International Inc.1	156,192		3,631,464
Watts Industries Inc. Class A	154,727		3,619,065
Oceaneering International Inc.1	118,753		3,616,029
Imagistics International Inc.1	81,966		3,610,602
Carpenter Technology Corp.	109,687		3,606,509
Champion Enterprises Inc.1	340,130		3,605,378
DSP Group Inc.1	140,080		3,604,258
Zenith National Insurance Corp.	91,945		3,604,244
IHOP Corp.	104,165		3,587,443
Hutchinson Technology Inc.1	127,216		3,569,681
Electronics Boutique Holdings Corp.1	121,338		3,562,484
Global Imaging Systems Inc.1	107,176		3,560,387
Central Parking Corp.	177,123		3,556,630
Wausau-Mosinee Paper Corp.	251,928		3,549,666
Sunrise Senior Living Inc.1	98,893		3,545,314
FEI Co.1	161,930		3,538,170
Ryan’s Family Steak Houses Inc.1	206,601		3,534,943
Russ Berrie & Co. Inc.	100,912		3,531,920
Too Inc.1	167,845		3,516,353
American Italian Pasta Co. Class A	87,919		3,510,606
Advanced Medical Optics Inc.1	143,685		3,505,914
CIBER Inc.1	318,431		3,502,741
Investment Technology Group Inc.1	228,349		3,493,740
Woodward Governor Co.	54,470		3,471,918
Forward Air Corp.1	104,765		3,443,626
PolyMedica Corp.	128,333		3,441,891
Stewart Information Services Corp.	87,529		3,439,890
Glenborough Realty Trust Inc.	152,810		3,415,303
Veritas DGC Inc.1	164,815		3,411,671
UIL Holdings Corp.	70,686		3,404,945
Cubic Corp.	130,571		3,394,846
Cambrex Corp.	126,041		3,390,503
Quanex Corp.	79,282		3,368,692
Cleveland-Cliffs Inc.1	51,309		3,357,148
Odyssey Healthcare Inc.1	177,338		3,342,821
Viasys Healthcare Inc.1	147,740		3,341,879
UICI1	226,316		3,340,424
AmSurg Corp.1	146,990		3,338,132
Boston Private Financial Holdings Inc.	118,914		3,329,592
Harmonic Inc.1	341,233		3,292,898
School Specialty Inc.1	92,154		3,277,918
Arkansas Best Corp.	121,979		3,267,817
El Paso Electric Co.1	235,341		3,257,119
Advanced Energy Industries Inc.1	159,259		3,247,291
Websense Inc.1	109,342		3,237,617

SCHEDULES OF INVESTMENTS 55

Schedule of Investments (Continued)

iSHARES^® S&P SMALLCAP 600 INDEX FUND

March 31, 2004

Security	Shares	Value
BARRA Inc.	92,096	$	3,222,439
Shaw Group Inc. (The)1	297,067		3,220,206
Electro Scientific Industries Inc.1	136,615		3,215,917
ManTech International Corp. Class A1	156,637		3,209,492
Viasat Inc.1	128,817		3,204,967
Brown Shoe Co. Inc.	87,933		3,203,399
Cash America International Inc.	138,183		3,185,118
Dendrite International Inc.1	198,549		3,176,784
Triarc Companies Inc. Class B	289,530		3,173,249
NCO Group Inc.1	135,755		3,172,594
Gold Bancorp Inc.	192,767		3,142,102
Ionics Inc.1	110,320		3,133,088
Barnes Group Inc.	112,270		3,131,210
TBC Corp.1	106,574		3,130,078
Movie Gallery Inc.	159,625		3,127,054
Griffon Corp.1	144,534		3,121,934
Arch Chemicals Inc.	110,014		3,105,695
Nuevo Energy Co.1	95,382		3,105,638
Helix Technology Corp.	127,562		3,093,378
CDI Corp.	95,568		3,084,935
Financial Federal Corp.1	91,118		3,046,075
Checkpoint Systems Inc.1	160,727		3,037,740
JLG Industries Inc.	212,173		3,034,074
Lone Star Steakhouse & Saloon Inc.	103,295		3,015,181
Centene Corp.1	98,555		3,014,797
Spherion Corp.1	294,009		3,007,712
Analogic Corp.	66,057		3,004,933
Pinnacle Systems Inc.1	331,982		2,997,797
Jo-Ann Stores Inc.1	106,563		2,989,092
PolyOne Corp.1	448,377		2,981,707
Papa John’s International Inc.1	87,871		2,973,555
Teledyne Technologies Inc.1	158,588		2,965,596
ANSYS Inc.1	74,380		2,955,861
Century Aluminum Co.1	103,613		2,924,995
Hydril1	111,458		2,920,200
WD-40 Co.	83,070		2,907,450
Sterling Bancshares Inc.	216,996		2,905,576
Kulicke & Soffa Industries Inc.1	247,531		2,901,063
Russell Corp.	158,753		2,898,830
C-COR.net Corp.1	206,610		2,896,672
Schulman (A.) Inc.	147,034		2,889,218
Anchor BanCorp Wisconsin Inc.	112,076		2,863,542
Laclede Group Inc. (The)	93,584		2,835,595
Bowne & Co. Inc.	165,711		2,833,658
Paxar Corp.1	191,185		2,819,979
Photronics Inc.1	158,769		2,816,562
Stein Mart Inc.1	203,939		2,814,358
Actel Corp.1	123,924		2,804,400
Umpqua Holdings Corp.	138,758		2,801,524
Tetra Technologies Inc.1	107,049		2,797,190
ESS Technology Inc.1	189,245		2,774,332
Phillips-Van Heusen Corp.	149,046		2,757,351
First Republic Bank	71,065		2,740,266
Tredegar Corp.	186,970		2,735,371
Merit Medical Systems Inc.1	125,836		2,723,091
Labor Ready Inc.1	200,523		2,711,071
EMCOR Group Inc.1	73,481		2,696,753
Universal Forest Products Inc.	86,613		2,672,877
Ultratech Inc.1	114,172		2,661,349
Thomas Industries Inc.	84,365		2,657,498
Mercury Computer Systems Inc.1	103,133		2,629,891
Photon Dynamics Inc.1	80,400		2,623,452
Arctic Cat Inc.	102,352		2,608,952
K2 Inc.1	162,200		2,600,066
ElkCorp	95,603		2,589,885
Cross Country Healthcare Inc.1	155,430		2,587,909
Remington Oil & Gas Corp.1	130,900		2,585,275
Steak n Shake Company (The)1	133,813		2,575,900
Esterline Technologies Corp.1	102,945		2,558,183
Triumph Group Inc.1	77,210		2,551,791
Offshore Logistics Inc.1	110,390		2,544,490
Datascope Corp.	72,278		2,539,849
Consolidated Graphics Inc.1	65,943		2,535,508
j2 Global Communications Inc.1	112,310		2,533,714
StarTek Inc.	69,593		2,529,010
Verity Inc.1	184,273		2,519,012
Swift Energy Co.1	133,633		2,518,982
Gardner Denver Inc.1	92,994		2,518,278
Vicor Corp.1	204,612		2,510,589
Marcus Corp.	144,647		2,509,625
Dress Barn Inc.1	142,729		2,503,467

56 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® S&P SMALLCAP 600 INDEX FUND

March 31, 2004

Security	Shares	Value
Nautilus Group Inc. (The)	158,749	$	2,500,297
General Communication Inc. Class A1	274,312		2,496,239
Prime Hospitality Corp.1	217,781		2,478,348
Frontier Oil Corp.	127,395		2,468,915
Rock-Tenn Co. Class A	170,981		2,465,546
Lone Star Technologies Inc.1	139,428		2,463,693
Enzo Biochem Inc.1	146,255		2,461,472
Genesco Inc.1	105,721		2,450,613
Park Electrochemical Corp.	96,693		2,446,333
Gymboree Corp.1	145,665		2,442,802
Regal-Beloit Corp.	121,887		2,435,302
Possis Medical Inc.1	86,544		2,434,483
Roto-Rooter Inc.	48,117		2,432,314
Biosite Inc.1	75,801		2,423,358
Atwood Oceanics Inc.1	67,706		2,409,657
Riggs National Corp.	139,897		2,407,627
Belden Inc.	125,545		2,381,589
Pinnacle Entertainment Inc.1	172,505		2,380,569
Noven Pharmaceuticals Inc.1	109,668		2,354,572
GenCorp. Inc.	216,199		2,341,435
ArthroCare Corp.1	101,234		2,339,518
Lance Inc.	142,516		2,335,837
Standard Microsystems Corp.1	87,603		2,333,744
Schweitzer-Mauduit International Inc.	72,194		2,331,866
International Multifoods Corp.1	94,057		2,325,089
EDO Corp.	96,480		2,323,238
Valmont Industries Inc.	116,184		2,321,356
Fleetwood Enterprises Inc.1	188,402		2,313,577
Haverty Furniture Companies Inc.	108,420		2,307,178
CTS Corp.	176,310		2,299,082
Goody’s Family Clothing Inc.	159,785		2,280,132
PAREXEL International Corp.1	127,144		2,272,063
Administaff Inc.1	129,743		2,261,420
Methode Electronics Inc.	174,857		2,255,655
Audiovox Corp. Class A1	112,434		2,248,680
CIMA Labs Inc.1	70,988		2,231,153
Standard Register Co. (The)	138,665		2,222,800
Chesapeake Corp.	92,961		2,218,979
New England Business Service Inc.	65,002		2,200,318
Prima Energy Corp.1	62,902		2,173,264
Intermagnetics General Corp.1	81,720		2,165,580
Applied Industrial Technologies Inc.	94,793		2,153,697
Presidential Life Corp.	143,396		2,148,072
Heidrick & Struggles International Inc.1	89,468		2,140,969
Vital Sign Inc.	63,184		2,131,196
Information Holdings Inc.1	102,043		2,104,127
Plains Resource Inc.1	115,364		2,097,318
C&D Technologies Inc.	124,672		2,083,269
ShopKo Stores Inc.1	142,228		2,079,373
SOURCECORP Inc.1	78,414		2,077,971
Deltic Timber Corp.	58,502		2,075,651
Pre-Paid Legal Services Inc.1	84,648		2,072,183
DuPont Photomasks Inc.1	88,949		2,068,954
Daktronics Inc.1	91,506		2,065,290
JDA Software Group Inc.1	141,732		2,062,201
Stewart & Stevenson Services Inc.	139,874		2,044,958
Stride Rite Corp.	192,307		2,040,377
Insituform Technologies Inc. Class A1	129,329		2,021,412
ICU Medical Inc.1	66,514		2,020,030
Duane Reade Inc.1	118,864		2,013,556
Cato Corp. Class A	99,835		2,004,687
Hologic Inc.1	98,292		1,990,413
Jill (J.) Group Inc. (The)1	96,942		1,989,250
Interface Inc. Class A1	250,208		1,989,154
Zix Corp.1	136,235		1,986,306
Midway Games Inc.1	272,519		1,983,938
Kopin Corp.1	342,468		1,979,465
Hooper Holmes Inc.	316,738		1,976,445
Cohu Inc.	104,751		1,953,606
Cable Design Technologies Corp.1	205,247		1,945,742
J&J Snack Foods Corp.1	42,857		1,936,279
Input/Output Inc.1	249,792		1,935,888
Symmetricom Inc.1	215,699		1,934,820
Orthodontic Centers of America Inc.1	244,402		1,930,776
W-H Energy Services Inc.1	132,953		1,923,830
AAR Corp.1	156,663		1,923,822
Nelson (Thomas) Inc.	70,303		1,913,648

SCHEDULES OF INVESTMENTS 57

Schedule of Investments (Continued)

iSHARES^® S&P SMALLCAP 600 INDEX FUND

March 31, 2004

Security	Shares	Value
O’Charley’s Inc.1	103,056	$	1,880,772
Buckeye Technologies Inc.1	180,568		1,870,684
Itron Inc.1	100,158		1,863,940
Agilysys Inc.	156,525		1,862,647
RadiSys Corp.1	88,319		1,845,867
Jakks Pacific Inc.1	122,189		1,832,835
Volt Information Sciences Inc.1	74,186		1,813,106
American States Water Co.	74,094		1,807,894
Myers Industries Inc.	146,600		1,803,180
Frontier Airlines Inc.1	173,009		1,802,754
Artesyn Technologies Inc.1	188,358		1,793,168
Bel Fuse Inc. Class B	54,311		1,778,142
Sturm Ruger & Co. Inc.	131,176		1,772,188
MemberWorks Inc.1	50,375		1,759,095
Immucor Inc.1	95,925		1,738,161
Libbey Inc.	66,260		1,718,122
SurModics Inc.1	85,105		1,694,441
Apogee Enterprises Inc.	133,858		1,650,469
Brush Engineered Materials Inc.1	81,383		1,649,633
Coinstar Inc.1	103,505		1,642,624
Kaman Corp. Class A	109,957		1,641,658
Bei Technologies Inc.	71,851		1,613,773
Keithley Instruments Inc.	77,699		1,609,146
Standex International Corp.	59,552		1,607,904
Intrado Inc.1	82,908		1,604,270
RTI International Metals Inc.1	101,343		1,604,260
Atlantic Coast Airlines Holdings Inc.1	220,460		1,602,744
Caraustar Industries Inc.1	136,892		1,594,792
Ryerson Tull Inc.	121,173		1,586,155
Skyline Corp.	40,808		1,573,965
DIMON Inc.	219,856		1,560,978
Netegrity Inc.1	183,401		1,558,909
RehabCare Group Inc.1	78,392		1,558,433
Astec Industries Inc.1	96,317		1,551,667
SPSS Inc.1	84,553		1,547,320
Robbins & Myers Inc.	70,487		1,518,995
Lawson Products Inc.	46,339		1,511,115
Standard Motor Products Inc.	95,943		1,504,386
Rudolph Technologies Inc.1	80,255		1,503,176
SWS Group Inc.	83,534		1,496,094
X-Rite Inc.	100,267		1,492,976
4Kids Entertainment Inc.1	65,484		1,464,877
TALX Corp.	66,705		1,464,175
Hancock Fabrics Inc.	91,710		1,457,272
Great Atlantic & Pacific Tea Co.1	187,328		1,449,919
Midas Inc.1	74,253		1,444,221
Pegasus Solutions Inc.1	122,084		1,425,941
EPIQ Systems Inc.1	86,754		1,421,031
Pericom Semiconductor Corp.1	123,064		1,412,775
MRO Software Inc.1	120,710		1,402,650
Nash Finch Co.	59,069		1,398,754
Tower Automotive Inc.1	274,803		1,385,007
Dril-Quip Inc.1	84,105		1,382,686
Lindsay Manufacturing Co.	57,330		1,380,506
Action Performance Companies Inc.	89,237		1,362,649
OshKosh B’Gosh Inc. Class A	57,833		1,353,292
PRG-Schultz International Inc.1	300,557		1,322,451
NUI Corp.	78,201		1,322,379
Pope & Talbot Inc.	76,344		1,312,353
Central Vermont Public Service Corp.	58,285		1,311,412
Alliance Semiconductor Corp.1	171,534		1,305,374
Wellman Inc.	155,627		1,299,485
Applica Inc.1	115,462		1,297,793
National Presto Industries Inc.	33,261		1,289,196
Mesa Air Group Inc.1	155,267		1,282,505
Coachmen Industries Inc.	75,811		1,264,527
Concord Communications Inc.1	87,714		1,263,959
Mobile Mini Inc.1	70,035		1,211,605
MapInfo Corp.1	94,827		1,209,993
Wet Seal Inc. Class A1	146,567		1,209,178
Brooktrout Inc.1	60,762		1,205,518
Cascade Natural Gas Corp.	54,492		1,187,381
Quaker Chemical Corp.	46,730		1,186,942
Rewards Network Inc.1	117,953		1,179,530
Network Equipment Technologies Inc.1	116,796		1,165,624
Steel Technologies Inc.	59,767		1,154,698
Building Materials Holdings Corp.	65,036		1,141,382
SBS Technologies Inc.1	73,524		1,136,681
Catapult Communications Corp.1	63,010		1,123,405

58 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® S&P SMALLCAP 600 INDEX FUND

March 31, 2004

Security	Shares	Value
Bassett Furniture Industries Inc.	56,587	$	1,122,120
Savient Pharmaceuticals Inc.1	290,594		1,098,445
Boston Communications Group Inc.1	90,399		1,071,228
Tollgrade Communications Inc.1	66,264		1,057,573
Magnetek Inc.1	138,846		1,049,676
Supertex Inc.1	62,386		1,040,598
PC-Tel Inc.1	100,232		1,035,397
OMNOVA Solutions Inc.1	195,096		1,024,254
Planar Systems Inc.1	71,054		1,011,098
Nature’s Sunshine Products Inc.	68,027		1,009,521
Digi International Inc.1	101,687		1,003,651
Angelica Corp.	43,175		985,685
Bally Total Fitness Holding Corp.1	166,066		973,147
Department 56 Inc.1	64,225		949,245
Bell Microproducts Inc.1	129,626		933,307
Carreker Corp.1	116,504		922,712
Advanced Marketing Services Inc.	92,990		920,601
Concord Camera Corp.1	139,126		873,711
Captaris Inc.1	156,920		863,060
Fedders Corp.	148,389		847,301
Curative Health Services Inc.1	62,611		838,987
Insurance Auto Auctions Inc.1	56,227		816,978
ArQule Inc.1	137,054		814,101
Lydall Inc.1	79,304		808,901
NYFIX Inc.1	155,131		800,476
Theragenics Corp.1	146,114		786,093
Enesco Group Inc.1	67,964		781,586
Material Sciences Corp.	69,405		763,455
Radiant Systems Inc.1	125,617		755,247
CPI Corp.	39,424		750,239
Gerber Scientific Inc.1	108,355		736,814
Roxio Inc.1	162,950		728,387
Penford Corp.	42,785		712,798
IMCO Recycling Inc.1	75,156		707,970
Castle (A.M.) & Co.1	77,096		696,948
Butler Manufacturing Co.	30,895		693,593
On Assignment Inc.1	122,952		687,302
Three-Five Systems Inc.1	104,038		681,449
CryoLife Inc.1	113,081		672,832
Haggar Corp.	32,991		659,820

Security	Shares or Principal		Value
Phoenix Technologies Ltd.1		118,503	$	638,731
Green Mountain Power Corp.		24,404		631,331
Milacron Inc.		169,018		586,492
Ashworth Inc.1		65,215		567,370
Commonwealth Industries Inc.		77,276		564,888
Intermet Corp.		124,944		562,248
Osteotech Inc.1		83,473		538,401
Salton Inc.1		54,584		511,452
Wolverine Tube Inc.1		59,912		502,662
SCM Microsystems Inc.1		74,539		500,157
Cross (A.T.) Co. Class A1		72,858		475,034
Ultimate Electronics Inc.1		71,571		467,359
QRS Corp.1		77,655		437,974
SCPIE Holdings Inc.		48,152		394,846
Meade Instruments Corp.1		97,095		392,264
Huffy Corp.1		78,905		307,728
TOTAL COMMON STOCKS (Cost: $2,000,866,174)				2,225,213,552
SHORT-TERM INVESTMENTS – 22.83%
MONEY MARKET FUNDS – 8.57%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares2,3		130,550,734		130,550,734
Barclays Global Investors Funds Prime Money Market Fund, Institutional Shares2,3		47,045,048		47,045,048
BlackRock Temp Cash Money Market Fund2		2,202,079		2,202,079
Short-Term Investment Co. - Liquid Assets Money Market Portfolio2		10,966,040		10,966,040
				190,763,901
FLOATING RATE NOTES – 4.66%
Beta Finance Inc.
1.05%, 05/20/042,4	$	2,138,411		2,138,369
1.05%, 09/15/042,4		4,276,823		4,276,627
1.06%, 10/12/042,4		2,138,411		2,138,299
1.14%, 08/23/042,4		2,138,411		2,139,132

SCHEDULES OF INVESTMENTS 59

Schedule of Investments (Continued)

iSHARES^® S&P SMALLCAP 600 INDEX FUND

March 31, 2004

Security	Principal		Value
CC USA Inc.
1.05%, 04/19/042,4	$	1,881,802	$	1,881,797
1.06%, 05/24/042,4		4,276,823		4,276,761
1.09%, 07/15/042,4		2,138,411		2,138,632
1.51%, 02/15/052,4		2,779,935		2,783,802
Dorada Finance Inc.
1.04%, 07/01/042		1,496,888		1,492,953
1.05%, 05/20/042,4		4,276,823		4,276,737
1.24%, 08/09/042		1,069,206		1,069,148
1.48%, 01/18/052,4		3,207,617		3,207,490
Five Finance Inc.
1.06%, 04/15/042,4		2,138,411		2,138,411
HBOS Treasury Services PLC
1.10%, 04/22/052		4,276,823		4,276,823
Holmes Financing PLC
1.05%, 04/15/042		427,682		427,682
K2 USA LLC
1.05%, 08/16/042,4		1,069,206		1,069,146
1.05%, 09/27/042,4		4,618,968		4,618,630
1.06%, 04/13/042		2,138,411		2,138,408
1.06%, 05/17/042		2,138,411		2,138,398
1.46%, 01/12/052,4		2,138,411		2,138,244
Links Finance LLC
1.05%, 06/28/042		2,138,411		2,138,309
1.06%, 05/04/042		2,138,411		2,138,402
1.06%, 07/20/042		1,710,729		1,710,626
Nationwide Building Society
1.09%, 07/23/042,4		3,207,617		3,207,617
1.11%, 12/28/042,4		4,276,823		4,276,823
Northern Rock PLC
1.11%, 01/13/052,4		4,062,981		4,062,981
Permanent Financing PLC
1.04%, 03/10/052		4,276,823		4,276,823
1.05%, 12/10/042		2,138,411		2,138,411
Sigma Finance Inc.
1.05%, 07/01/042		2,138,411		2,138,278
1.06%, 07/20/042		2,138,411		2,138,282
1.09%, 10/07/042		4,276,823		4,276,381
1.24%, 08/06/042		1,069,206		1,069,168
Tango Finance Corp.
1.05%, 01/18/052,4		1,881,802		1,881,650
1.06%, 07/15/042,4		1,283,047		1,282,925
1.07%, 02/25/052,4		2,395,021		2,394,589
1.10%, 07/06/042,4		1,283,047		1,283,012
WhistleJacket Capital LLC
1.05%, 09/15/042,4		2,138,411		2,138,216
1.32%, 02/04/052,4		1,069,206		1,069,025
White Pine Finance LLC
1.04%, 08/26/042,4		2,138,411		2,138,279
1.05%, 11/15/042,4		2,566,094		2,566,094
1.06%, 04/20/042,4		2,138,411		2,138,411
1.06%, 07/06/042,4		2,566,094		2,566,029
				103,795,820
COMMERCIAL PAPER – 4.30%
Alpine Securitization Corp.
1.03%, 04/14/042		2,010,107		2,009,359
1.03%, 04/20/042		2,138,411		2,137,249
1.03%, 04/23/042		2,523,325		2,521,738
1.03%, 04/26/042		2,138,411		2,136,882
Amsterdam Funding Corp.
1.03%, 05/05/042		1,732,113		1,730,428
Barton Capital Corp.
1.03%, 04/02/042		2,228,609		2,228,546
Blue Ridge Asset Funding Corp.
1.02%, 04/23/042		1,283,047		1,282,248
1.03%, 05/21/042		2,138,411		2,135,352
Corporate Asset Funding
1.05%, 05/21/042		2,223,948		2,220,720
Corporate Receivables Corp.
1.03%, 04/07/042		2,138,411		2,138,044
1.04%, 06/03/042		4,276,823		4,269,039
Delaware Funding Corp.
1.03%, 04/02/042		2,138,411		2,138,350
1.03%, 05/05/042		3,211,167		3,208,043
1.03%, 05/21/042		1,069,206		1,067,676
Edison Asset Securitization
1.07%, 09/21/042		2,138,411		2,127,416
Eureka Securitization Inc.
1.03%, 05/25/042		855,365		854,043
1.04%, 04/14/042		2,566,094		2,565,130

60 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® S&P SMALLCAP 600 INDEX FUND

March 31, 2004

Security	Principal		Value
Falcon Asset Securitization
1.03%, 04/15/042	$	2,570,071	$	2,569,042
1.03%, 04/22/042		2,523,325		2,521,810
1.03%, 04/30/042		2,138,411		2,136,637
Galaxy Funding Inc.
1.05%, 05/17/042		2,138,411		2,135,556
Gemini Securitization Corp.
1.03%, 04/20/042		1,283,902		1,283,204
1.03%, 04/23/042		2,471,447		2,469,892
1.03%, 04/30/042		1,498,727		1,497,483
1.03%, 05/24/042		1,069,206		1,067,585
1.04%, 04/19/042		1,069,206		1,068,650
GIRO Funding US Corp.
1.05%, 05/19/042		1,069,206		1,067,709
Jupiter Securitization Corp.
1.03%, 04/16/042		4,276,823		4,274,987
1.03%, 04/19/042		5,773,710		5,770,737
1.03%, 04/28/042		2,566,094		2,564,111
1.03%, 04/30/042		3,642,784		3,639,761
Liberty Street Funding Corp.
1.04%, 04/08/042		1,498,428		1,498,125
1.05%, 04/05/042		1,732,113		1,731,911
Polonius Inc.
1.04%, 05/21/042		2,474,142		2,470,568
Preferred Receivables Funding Corp.
1.03%, 04/19/042		4,490,664		4,488,351
1.04%, 04/23/042		4,918,346		4,915,220
1.04%, 05/20/042		1,069,206		1,067,692
Receivables Capital Corp.
1.04%, 04/14/042		1,881,802		1,881,096
Scaldis Capital LLC
1.05%, 06/30/042		1,531,102		1,527,083
Thames Asset Global Securitization No. 1 Inc.
1.03%, 04/19/042		2,138,411		2,137,310
Thunder Bay Funding Inc.
1.03%, 04/19/042		1,360,243		1,359,543
1.04%, 04/29/042		1,926,281		1,924,723
				95,839,049
TIME DEPOSITS – 3.68%
Abbey National Treasury Services PLC
1.08%, 04/01/042		14,968,879		14,968,879
1.33%, 02/10/052		2,138,411		2,138,134
1.39%, 02/02/052		2,138,411		2,138,142
1.40%, 10/25/042		4,276,823		4,276,459
Bank of New York
1.39%, 11/01/042		4,276,823		4,276,572
Bank of Nova Scotia
1.24%, 10/07/042		3,207,617		3,207,451
1.42%, 10/29/042		3,207,617		3,207,756
Canadian Imperial Bank of Commerce
1.24%, 10/07/042		3,207,617		3,207,367
1.38%, 11/22/042		1,069,206		1,069,258
1.40%, 10/29/042		4,276,823		4,276,761
National City Bank (Cleveland, Ohio)
1.02%, 04/01/042		6,415,234		6,415,234
Toronto-Dominion Bank
1.04%, 06/22/042		1,069,206		1,069,206
1.22%, 03/23/052		7,484,439		7,483,160
1.34%, 02/10/052		1,710,729		1,710,508
1.41%, 11/01/042		3,207,617		3,207,429
UBS Finance (Delaware)
1.06%, 04/01/042		8,553,645		8,553,645
1.10%, 09/08/042		4,276,823		4,255,914
1.11%, 12/17/042		6,415,234		6,363,806
				81,825,681
REPURCHASE AGREEMENTS – 1.15%
Bank of America, NA
1.06%, 04/01/042		8,553,645		8,553,645
Goldman, Sachs & Co.
1.08%, 04/01/042		17,107,290		17,107,290
				25,660,935

SCHEDULES OF INVESTMENTS 61

Schedule of Investments (Continued)

iSHARES^® S&P SMALLCAP 600 INDEX FUND

March 31, 2004

Security	Principal		Value
U.S. GOVERNMENT AGENCY NOTES – 0.47%
Federal Home Loan Mortgage Corporation
1.15%, 05/12/042	$	3,207,617	$	3,203,416
1.28%, 08/19/042		1,710,729		1,702,213
Federal National Mortgage Association
1.28%, 08/20/042		5,559,869		5,531,986
				10,437,615
TOTAL SHORT-TERM INVESTMENTS (Cost: $508,323,001)				508,323,001
TOTAL INVESTMENTS IN SECURITIES – 122.77% (Cost: $2,509,189,175)				2,733,536,553
Other Assets, Less Liabilities – (22.77%)				(507,001,163	)
NET ASSETS – 100.00%			$	2,226,535,390

¹ Non-income earning securities.

² All or a portion of this security represents investments of securities lending collateral.

³ Issuer is an affiliate of the Fund’s investment advisor. See Note 2.

⁴ Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

See notes to financial statements.

62 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® S&P SMALLCAP 600/BARRA GROWTH INDEX FUND

March 31, 2004

Security	Shares	Value
COMMON STOCKS – 99.94%
NVR Inc.1	21,003	$	9,661,380
NBTY Inc.1	215,069		7,996,265
Medicis Pharmaceutical Corp. Class A	179,271		7,170,840
MGI Pharma Inc.1	112,947		6,919,133
Alliant Techsystems Inc.1	124,774		6,787,706
Renal Care Group Inc.1	146,448		6,701,460
Polaris Industries Inc.	140,404		6,379,958
IDEXX Laboratories Inc.1	111,861		6,361,535
Oshkosh Truck Corp.	112,983		6,293,153
Pacific Sunwear of California Inc.1	252,291		6,191,221
Urban Outfitters Inc.1	127,775		6,140,867
INAMED Corp.1	112,954		6,018,189
Respironics Inc.1	110,836		5,987,361
Accredo Health Inc.1	155,287		5,916,435
Florida Rock Industries Inc.	138,938		5,856,237
UCBH Holdings Inc.	145,156		5,812,046
Patina Oil & Gas Corp.	219,971		5,774,239
South Financial Group Inc. (The)	190,181		5,627,456
Roper Industries Inc.	116,094		5,601,536
Cooper Companies Inc.	103,416		5,584,464
New Century Financial Corp.	113,525		5,512,774
Hudson United Bancorp	144,425		5,495,371
Global Payments Inc.	121,484		5,476,499
TECHNE Corp.1	132,414		5,403,815
Pharmaceutical Product Development Inc.1	181,078		5,394,314
First Bancorp	128,972		5,365,235
Take-Two Interactive Software Inc.1	143,696		5,285,139
Zale Corp.1	83,857		5,161,398
Cerner Corp.1	114,196		5,160,517
First Midwest Bancorp Inc.	150,137		5,125,677
Hyperion Solutions Corp.1	122,922		5,095,117
Fossil Inc.1	150,015		5,003,000
Ethan Allen Interiors Inc.	120,192		4,959,122
Thor Industries Inc.	184,515		4,956,073
ResMed Inc.1	108,333		4,895,568
Varian Semiconductor Equipment Associates Inc.1	116,162		4,878,804
Toro Co.	78,616		4,874,192
Briggs & Stratton Corp.	72,001		4,857,907
Essex Property Trust Inc.	73,459		4,811,565
Evergreen Resources Inc.1	138,672		4,763,383
Cognex Corp.	141,157		4,693,470
Tractor Supply Co.1	120,224		4,655,073
FactSet Research Systems Inc.	109,084		4,642,615
Avid Technology Inc.1	99,043		4,568,854
Cymer Inc.1	116,266		4,489,030
East West Bancorp Inc.	78,297		4,384,632
Sonic Corp.1	127,020		4,354,246
CEC Entertainment Inc.1	124,802		4,330,629
United Bancshares Inc.	141,757		4,323,589
SCP Pool Corp.1	114,445		4,264,221
Mentor Corp.	141,116		4,247,592
Southwest Bancorp of Texas Inc.	110,513		4,169,655
P.F. Chang’s China Bistro Inc.1	82,085		4,129,696
WebEx Communications Inc.1	137,757		4,095,516
Hot Topic Inc.1	154,226		4,079,278
Flir Systems Inc.1	106,786		4,070,682
Engineered Support Systems Inc.	83,371		4,067,671
CACI International Inc. Class A1	93,870		4,036,410
Diagnostic Products Corp.	92,916		4,023,263
Arbitron Inc.1	99,414		4,002,408
Quiksilver Inc.1	179,488		3,921,813
Landstar System Inc.1	95,682		3,917,221
Community First Bankshares Inc.	120,983		3,888,394
Simpson Manufacturing Co. Inc.1	78,230		3,829,359
Tetra Tech Inc.1	176,133		3,779,814
Panera Bread Co. Class A1	97,071		3,778,003
Heartland Express Inc.	161,173		3,671,521
Trimble Navigation Ltd.1	159,810		3,664,443
Dionex Corp.1	68,628		3,623,558
CLARCOR Inc.	81,583		3,601,889
AMERIGROUP Corp.1	78,469		3,586,033
Axcelis Technologies Inc.1	318,940		3,546,613
MacDermid Inc.	97,617		3,435,142
Winnebago Industries Inc.	109,224		3,404,512
Sybron Dental Specialties Inc.1	123,824		3,374,204
Argosy Gaming Co.1	94,490		3,359,119
New Jersey Resources Corp.	88,488		3,344,846

SCHEDULES OF INVESTMENTS 63

Schedule of Investments (Continued)

iSHARES^® S&P SMALLCAP 600/BARRA GROWTH INDEX FUND

March 31, 2004

Security	Shares	Value
Sierra Health Services Inc.1	89,188	$	3,246,443
Kronos Inc.1	99,635		3,241,127
TrustCo Bank Corp. NY	240,002		3,230,427
Acuity Brands Inc.	135,238		3,229,483
FileNET Corp.1	121,068		3,226,462
CARBO Ceramics Inc.	51,189		3,222,348
Aeroflex Inc.1	239,038		3,217,451
Cabot Oil & Gas Corp.	104,741		3,200,885
Georgia Gulf Corp.	105,618		3,184,383
Men’s Wearhouse Inc. (The)1	119,691		3,180,190
Commonwealth Telephone Enterprises Inc.1	77,254		3,168,187
ADVO Inc.	97,253		3,133,492
NDCHealth Corp.	115,092		3,124,748
Wintrust Financial Corp.	63,525		3,089,221
Delta & Pine Land Co.	122,748		3,062,563
Fred’s Inc.	126,013		3,058,336
United Natural Foods Inc.1	63,010		3,030,151
Rare Hospitality International Inc.1	108,506		3,011,042
Brooks Automation Inc.1	143,269		3,005,784
United Surgical Partners International Inc.1	88,395		3,000,126
Select Comfort Corp.1	108,452		2,992,191
WMS Industries Inc.1	96,270		2,984,370
Priority Healthcare Corp. Class B1	140,042		2,981,494
Cost Plus Inc.1	70,314		2,935,609
Knight Transportation Inc.1	120,924		2,899,758
Brady Corp. Class A	75,701		2,882,694
Republic Bancorp Inc.	204,780		2,879,207
Guitar Center Inc.1	76,765		2,851,052
Power Integrations Inc.1	97,154		2,849,527
American Medical Systems Holdings Inc.1	106,602		2,824,953
K-Swiss Inc. Class A	114,274		2,796,285
Rogers Corp.1	52,160		2,783,779
Harland (John H.) Co.	89,314		2,779,452
Headwaters Inc.1	107,028		2,742,057
Progress Software Corp.1	113,594		2,725,120
Manhattan Associates Inc.1	96,548		2,684,034
Integra LifeSciences Holdings Corp.1	87,516		2,679,740
MICROS Systems Inc.1	59,210		2,673,332
Children’s Place Retail Stores Inc. (The)1	86,114		2,666,951
Watson Wyatt & Co. Holdings1	105,583		2,664,915
Veeco Instruments Inc.1	94,421		2,648,509
ATMI Inc.1	99,820		2,627,262
Microsemi Corp.1	190,614		2,607,600
SERENA Software Inc.1	126,547		2,575,231
Christopher & Banks Corp.	121,853		2,572,317
Wabash National Corp.1	107,308		2,532,469
Dime Community Bancshares	123,830		2,519,941
American Healthways Inc.1	103,163		2,519,240
Monaco Coach Corp.	93,793		2,513,652
Kaydon Corp.	90,962		2,504,184
Wilson Greatbatch Technologies Inc.1	68,296		2,477,779
MAXIMUS Inc.1	70,560		2,469,600
Shuffle Master Inc.1	53,115		2,469,316
CUNO Inc.1	54,556		2,448,473
Inter-Tel Inc.	81,201		2,440,902
Baldor Electric Co.	105,702		2,429,032
Regeneron Pharmaceuticals Inc.1	178,300		2,421,314
Sterling Financial Corp. (Washington)1	65,422		2,413,418
Oxford Industries Inc.	52,193		2,410,795
Champion Enterprises Inc.1	224,566		2,380,400
Global Imaging Systems Inc.1	70,703		2,348,754
FEI Co.1	106,822		2,334,061
Too Inc.1	110,724		2,319,668
Advanced Medical Optics Inc.1	94,786		2,312,778
Forward Air Corp.1	69,110		2,271,646
PolyMedica Corp.	84,658		2,270,528
Cubic Corp.	86,134		2,239,484
Cleveland-Cliffs Inc.1	33,848		2,214,675
Odyssey Healthcare Inc.1	116,984		2,205,148
AmSurg Corp.1	96,964		2,202,052
Boston Private Financial Holdings Inc.	78,443		2,196,404
Harmonic Inc.1	225,186		2,173,045
Advanced Energy Industries Inc.1	105,057		2,142,112
Websense Inc.1	72,128		2,135,710
BARRA Inc.	60,752		2,125,712

64 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® S&P SMALLCAP 600/BARRA GROWTH INDEX FUND

March 31, 2004

Security	Shares	Value
ManTech International Corp. Class A1	103,326	$	2,117,150
Viasat Inc.1	84,974		2,114,153
Dendrite International Inc.1	130,972		2,095,552
TBC Corp.1	70,301		2,064,740
Helix Technology Corp.	84,146		2,040,541
JLG Industries Inc.	139,957		2,001,385
Centene Corp.1	65,011		1,988,686
Papa John’s International Inc.1	57,964		1,961,502
Teledyne Technologies Inc.1	104,753		1,958,881
ANSYS Inc.1	49,064		1,949,803
Hydril1	73,522		1,926,276
WD-40 Co.	54,795		1,917,825
Kulicke & Soffa Industries Inc.1	163,410		1,915,165
C-COR.net Corp.1	136,286		1,910,730
Tetra Technologies Inc.1	70,611		1,845,065
Actel Corp.1	81,524		1,844,888
ESS Technology Inc.1	124,937		1,831,576
Merit Medical Systems Inc.1	83,003		1,796,185
Labor Ready Inc.1	132,757		1,794,875
Ultratech Inc.1	75,370		1,756,875
Photon Dynamics Inc.1	53,229		1,736,862
Mercury Computer Systems Inc.1	68,019		1,734,485
Arctic Cat Inc.	67,804		1,728,324
ElkCorp	63,067		1,708,485
Steak n Shake Company (The)1	88,261		1,699,024
j2 Global Communications Inc.1	74,083		1,671,312
StarTek Inc.	45,931		1,669,133
Enzo Biochem Inc.1	96,909		1,630,978
Frontier Oil Corp.	84,048		1,628,850
Gymboree Corp.1	96,437		1,617,248
Possis Medical Inc.1	57,083		1,605,745
Biosite Inc.1	49,994		1,598,308
Noven Pharmaceuticals Inc.1	72,373		1,553,848
ArthroCare Corp.1	66,558		1,538,155
Fleetwood Enterprises Inc.1	124,338		1,526,871
Administaff Inc.1	85,568		1,491,450
New England Business Service Inc.	42,738		1,446,681
Prima Energy Corp.1	41,434		1,431,545
Intermagnetics General Corp.1	53,969		1,430,179
Plains Resource Inc.1	76,202		1,385,352
Daktronics Inc.1	60,626		1,368,329
Pre-Paid Legal Services Inc.1	55,575		1,360,476
ICU Medical Inc.1	44,073		1,338,497
Zix Corp.1	90,257		1,315,947
Midway Games Inc.1	180,644		1,315,088
Kopin Corp.1	225,347		1,302,506
Nelson (Thomas) Inc.	46,542		1,266,873
Artesyn Technologies Inc.1	124,869		1,188,753
MemberWorks Inc.1	33,399		1,166,293
Immucor Inc.1	63,608		1,152,577
Libbey Inc.	43,822		1,136,304
SurModics Inc.1	56,342		1,121,769
Coinstar Inc.1	68,632		1,089,190
Keithley Instruments Inc.	51,471		1,065,964
Intrado Inc.1	54,910		1,062,509
Bei Technologies Inc.	47,207		1,060,269
Netegrity Inc.1	121,350		1,031,475
SPSS Inc.1	56,177		1,028,039
Rudolph Technologies Inc.1	53,074		994,076
X-Rite Inc.	66,294		987,118
4Kids Entertainment Inc.1	43,331		969,314
TALX Corp.	43,852		962,551
Midas Inc.1	49,115		955,287
EPIQ Systems Inc.1	57,391		940,065
Lindsay Manufacturing Co.	37,956		913,980
OshKosh B’Gosh Inc. Class A	38,261		895,307
Mesa Air Group Inc.1	101,812		840,967
Concord Communications Inc.1	58,090		837,077
Brooktrout Inc.1	40,252		798,600
Rewards Network Inc.1	78,126		781,260
Catapult Communications Corp.1	41,745		744,272
Carreker Corp.1	77,177		611,242
Fedders Corp.	98,294		561,259
Radiant Systems Inc.1	83,216		500,320
CPI Corp.	26,189		498,377
Milacron Inc.	112,567		390,607
QRS Corp.1	51,441		290,127
TOTAL COMMON STOCKS (Cost: $559,747,879)			687,731,897

SCHEDULES OF INVESTMENTS 65

Schedule of Investments (Continued)

iSHARES^® S&P SMALLCAP 600/BARRA GROWTH INDEX FUND

March 31, 2004

Security	Shares or Principal		Value
SHORT-TERM INVESTMENTS – 23.15%
MONEY MARKET FUNDS – 8.63%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares2,3		40,454,558	$	40,454,558
Barclays Global Investors Funds Prime Money Market Fund, Institutional Shares2,3		14,798,394		14,798,394
BlackRock Temp Cash Money Market Fund2		692,681		692,681
Short-Term Investment Co.– Liquid Assets Money Market Portfolio2		3,449,455		3,449,455
				59,395,088
FLOATING RATE NOTES – 4.75%
Beta Finance Inc.
1.05%, 05/20/042,4	$	672,654		672,641
1.05%, 09/15/042,4		1,345,309		1,345,247
1.06%, 10/12/042,4		672,654		672,619
1.14%, 08/23/042,4		672,654		672,881
CC USA Inc.
1.05%, 04/19/042,4		591,936		591,934
1.06%, 05/24/042,4		1,345,309		1,345,289
1.09%, 07/15/042,4		672,654		672,724
1.51%, 02/15/052,4		874,451		875,667
Dorada Finance Inc.
1.04%, 07/01/042		470,858		469,620
1.05%, 05/20/042,4		1,345,309		1,345,282
1.24%, 08/09/042		336,327		336,309
1.48%, 01/18/052,4		1,008,981		1,008,941
Five Finance Inc.
1.06%, 04/15/042,4		672,654		672,654
HBOS Treasury Services PLC
1.10%, 04/22/052		1,345,309		1,345,309
Holmes Financing PLC
1.05%, 04/15/042		134,531		134,531

Security	Principal		Value
K2 USA LLC
1.05%, 08/16/042,4	$	336,327	$	336,309
1.05%, 09/27/042,4		1,452,933		1,452,827
1.06%, 04/13/042		672,654		672,653
1.06%, 05/17/042		672,654		672,650
1.46%, 01/12/052,4		672,654		672,602
Links Finance LLC
1.05%, 06/28/042		672,654		672,622
1.06%, 05/04/042		672,654		672,651
1.06%, 07/20/042		538,123		538,091
Nationwide Building Society
1.09%, 07/23/042,4		1,008,981		1,008,981
1.11%, 12/28/042,4		1,345,309		1,345,309
Northern Rock PLC
1.11%, 01/13/052,4		1,278,043		1,278,043
Permanent Financing PLC
1.04%, 03/10/052		1,345,309		1,345,309
1.05%, 12/10/042		672,654		672,654
Sigma Finance Inc.
1.05%, 07/01/042		672,654		672,612
1.06%, 07/20/042		672,654		672,614
1.09%, 10/07/042		1,345,309		1,345,170
1.24%, 08/06/042		336,327		336,315
Tango Finance Corp.
1.05%, 01/18/052,4		591,936		591,888
1.06%, 07/15/042,4		403,593		403,554
1.07%, 02/25/052,4		753,373		753,237
1.10%, 07/06/042,4		403,593		403,582
WhistleJacket Capital LLC
1.05%, 09/15/042,4		672,654		672,593
1.32%, 02/04/052,4		336,327		336,270
White Pine Finance LLC
1.04%, 08/26/042,4		672,654		672,613
1.05%, 11/15/042,4		807,185		807,185
1.06%, 04/20/042,4		672,654		672,654
1.06%, 07/06/042,4		807,185		807,165
				32,649,801

66 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® S&P SMALLCAP 600/BARRA GROWTH INDEX FUND

March 31, 2004

Security	Principal		Value
COMMERCIAL PAPER – 4.38%
Alpine Securitization Corp.
1.03%, 04/14/042	$	632,295	$	632,060
1.03%, 04/20/042		672,654		672,289
1.03%, 04/23/042		793,732		793,232
1.03%, 04/26/042		672,654		672,173
Amsterdam Funding Corp.
1.03%, 05/05/042		544,850		544,320
Barton Capital Corp.
1.03%, 04/02/042		701,027		701,007
Blue Ridge Asset Funding Corp.
1.02%, 04/23/042		403,593		403,341
1.03%, 05/21/042		672,654		671,693
Corporate Asset Funding
1.05%, 05/21/042		699,560		698,545
Corporate Receivables Corp.
1.03%, 04/07/042		672,654		672,539
1.04%, 06/03/042		1,345,309		1,342,860
Delaware Funding Corp.
1.03%, 04/02/042		672,654		672,635
1.03%, 05/05/042		1,010,098		1,009,115
1.03%, 05/21/042		336,327		335,847
Edison Asset Securitization
1.07%, 09/21/042		672,654		669,196
Eureka Securitization Inc.
1.03%, 05/25/042		269,062		268,647
1.04%, 04/14/042		807,185		806,882
Falcon Asset Securitization
1.03%, 04/15/042		808,436		808,112
1.03%, 04/22/042		793,732		793,255
1.03%, 04/30/042		672,654		672,096
Galaxy Funding Inc.
1.05%, 05/17/042		672,654		671,756
Gemini Securitization Corp.
1.03%, 04/20/042		403,862		403,642
1.03%, 04/23/042		777,413		776,924
1.03%, 04/30/042		471,436		471,045
1.03%, 05/24/042		336,327		335,817
1.04%, 04/19/042		336,327		336,152
GIRO Funding US Corp.
1.05%, 05/19/042		336,327		335,856
Jupiter Securitization Corp.
1.03%, 04/16/042		1,345,309		1,344,731
1.03%, 04/19/042		1,816,167		1,815,231
1.03%, 04/28/042		807,185		806,562
1.03%, 04/30/042		1,145,867		1,144,916
Liberty Street Funding Corp.
1.04%, 04/08/042		471,342		471,247
1.05%, 04/05/042		544,850		544,786
Polonius Inc.
1.04%, 05/21/042		778,261		777,137
Preferred Receivables Funding Corp.
1.03%, 04/19/042		1,412,574		1,411,847
1.04%, 04/23/042		1,547,105		1,546,122
1.04%, 05/20/042		336,327		335,851
Receivables Capital Corp.
1.04%, 04/14/042		591,936		591,713
Scaldis Capital LLC
1.05%, 06/30/042		481,620		480,357
Thames Asset Global Securitization No. 1 Inc.
1.03%, 04/19/042		672,654		672,308
Thunder Bay Funding Inc.
1.03%, 04/19/042		427,875		427,655
1.04%, 04/29/042		605,927		605,437
				30,146,936
TIME DEPOSITS – 3.74%
Abbey National Treasury Services PLC
1.08%, 04/01/042		4,708,580		4,708,580
1.33%, 02/10/052		672,654		672,567
1.39%, 02/02/052		672,654		672,569
1.40%, 10/25/042		1,345,309		1,345,194
Bank of New York
1.39%, 11/01/042		1,345,309		1,345,230
Bank of Nova Scotia
1.24%, 10/07/042		1,008,981		1,008,930
1.42%, 10/29/042		1,008,981		1,009,025
Canadian Imperial Bank of Commerce
1.24%, 10/07/042		1,008,981		1,008,903
1.38%, 11/22/042		336,327		336,344
1.40%, 10/29/042		1,345,309		1,345,289

SCHEDULES OF INVESTMENTS 67

Schedule of Investments (Continued)

iSHARES^® S&P SMALLCAP 600/BARRA GROWTH INDEX FUND

March 31, 2004

Security	Principal		Value
National City Bank (Cleveland, Ohio)
1.02%, 04/01/042	$	2,017,963	$	2,017,963
Toronto-Dominion Bank
1.04%, 06/22/042		336,327		336,327
1.22%, 03/23/052		2,354,290		2,353,888
1.34%, 02/10/052		538,123		538,054
1.41%, 11/01/042		1,008,981		1,008,923
UBS Finance (Delaware)
1.06%, 04/01/042		2,690,617		2,690,617
1.10%, 09/08/042		1,345,309		1,338,731
1.11%, 12/17/042		2,017,963		2,001,785
				25,738,919
REPURCHASE AGREEMENTS – 1.17%
Bank of America, NA
1.06%, 04/01/042		2,690,617		2,690,617
Goldman, Sachs & Co.
1.08%, 04/01/042		5,381,234		5,381,234
				8,071,851
U.S. GOVERNMENT AGENCY NOTES – 0.48%
Federal Home Loan Mortgage Corporation
1.15%, 05/12/042		1,008,981		1,007,660
1.28%, 08/19/042		538,123		535,445
Federal National Mortgage Association 1.28%, 08/20/042		1,748,901		1,740,129
				3,283,234
TOTAL SHORT-TERM INVESTMENTS (Cost: $159,285,829)				159,285,829
TOTAL INVESTMENTS IN SECURITIES – 123.09% (Cost: $719,033,708)				847,017,726
Other Assets, Less Liabilities – (23.09%)				(158,880,744	)
NET ASSETS – 100.00%			$	688,136,982

¹ Non-income earning securities.

² All or a portion of this security represents investments of securities lending collateral.

³ Issuer is an affiliate of the Fund’s investment advisor. See Note 2.

⁴ Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

See notes to financial statements.

68 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® S&P SMALLCAP 600/BARRA VALUE INDEX FUND

March 31, 2004

Security	Shares	Value
COMMON STOCKS – 99.93%
Fremont General Corp.	319,762	$	9,784,717
M.D.C. Holdings Inc.	136,875		9,636,000
Timken Co. (The)	376,287		8,741,147
Standard-Pacific Corp.	138,235		8,294,100
Shurgard Storage Centers Inc. Class A	192,183		7,668,102
Skyworks Solutions Inc.1	627,796		7,320,101
Tom Brown Inc.1	192,004		7,219,350
Whitney Holding Corp.	170,077		7,099,014
Massey Energy Co.	317,288		7,002,546
UGI Corp.	212,264		6,987,731
Pep Boys-Manny, Moe & Jack Inc.	249,188		6,914,967
Piedmont Natural Gas Co.	160,233		6,765,037
Yellow Roadway Corp.1	200,448		6,749,084
Linens `n Things Inc.1	188,511		6,675,175
Performance Food Group Co.1	192,971		6,628,554
Hughes Supply Inc.	125,989		6,601,824
Flagstar Bancorp Inc.	254,579		6,529,951
Energen Corp.	152,209		6,278,621
Pediatrix Medical Group Inc.1	99,047		6,239,961
Downey Financial Corp.	117,614		6,221,781
Staten Island Bancorp Inc.	247,467		6,156,979
Corn Products International Inc.	152,025		6,081,000
MAF Bancorp Inc.	138,936		6,038,159
Idex Corp.	138,570		6,025,024
United Stationers Inc.1	142,213		5,987,167
Invacare Corp.	130,691		5,899,392
AptarGroup Inc.	153,491		5,894,054
Southern Union Co.1	307,787		5,832,564
Hilb, Rogal & Hamilton Co.	151,403		5,768,454
Atmos Energy Corp.	218,346		5,583,107
Stone Energy Corp.1	111,145		5,497,232
Delphi Financial Group Inc. Class A	130,315		5,475,836
Benchmark Electronics Inc.1	171,263		5,391,359
Philadelphia Consolidated Holding Corp.1	92,577		5,369,466
US Oncology Inc.1	354,508		5,239,628
Capital Automotive	148,180		5,232,236
Chittenden Corp.	154,650		5,103,450
Cimarex Energy Co.1	175,355		5,067,759
Spinnaker Exploration Co.1	140,127		5,033,362
Unit Corporation1	183,513		5,031,926
Steel Dynamics Inc.1	202,596		5,020,329
Mueller Industries Inc.	147,054		4,998,365
Flowers Foods Inc.	190,233		4,991,714
Commercial Federal Corp.	177,569		4,900,904
La-Z-Boy Inc.	221,454		4,818,839
Waste Connections Inc.1	119,937		4,773,493
Reliance Steel & Aluminum Co.	134,927		4,742,684
Kroll Inc.1	176,002		4,725,654
SkyWest Inc.	243,642		4,687,672
Lennox International Inc.	247,722		4,595,243
Colonial Properties Trust	110,320		4,501,056
Kellwood Co.	112,566		4,418,216
Piper Jaffray Companies Inc.1	81,160		4,394,814
Gables Residential Trust	119,995		4,349,819
Lexington Corp. Properties Trust	198,755		4,330,871
Anixter International Inc.	152,622		4,311,571
Susquehanna Bancshares Inc.	167,743		4,299,253
Alpharma Inc. Class A	218,664		4,288,001
Kilroy Realty Corp.	118,130		4,193,615
Owens & Minor Inc.	164,901		4,171,995
Maverick Tube Corp.1	176,710		4,161,521
Commercial Net Lease Realty Inc.	210,590		4,159,152
CAL Dive International Inc.1	158,922		4,104,955
Meritage Corp.1	55,252		4,102,461
RLI Corp.	106,036		4,092,990
Curtiss-Wright Corp.	87,231		4,088,517
URS Corp.1	141,558		4,074,039
Black Box Corp.	75,902		4,067,588
Selective Insurance Group Inc.	114,986		4,032,559
Adaptec Inc.1	459,456		4,024,835
Wolverine World Wide Inc.	165,974		4,004,953
St. Mary Land & Exploration Co.	119,358		3,990,138
Vintage Petroleum Inc.	270,677		3,968,125
USF Corp.	115,505		3,952,581
Brookline Bancorp Inc.	247,726		3,951,230
Armor Holdings Inc.1	118,668		3,927,911
Avista Corp.	203,485		3,849,936
Commercial Metals Co.	120,017		3,821,341

SCHEDULES OF INVESTMENTS 69

Schedule of Investments (Continued)

iSHARES^® S&P SMALLCAP 600/BARRA VALUE INDEX FUND

March 31, 2004

Security	Shares	Value
Jack in the Box Inc.1	152,827	$	3,816,090
Waypoint Financial Corp.	141,791		3,802,835
Cleco Corp.	199,051		3,787,941
Insight Enterprises Inc.1	196,127		3,775,445
Albany International Corp. Class A	140,250		3,771,322
BankUnited Financial Corp. Class A1	125,943		3,740,507
Moog Inc. Class A1	109,490		3,735,799
Ralcorp Holdings Inc.1	122,499		3,727,645
Burlington Coat Factory Warehouse Corp.	187,729		3,717,034
ABM Industries Inc.	204,401		3,668,998
Southwestern Energy Co.1	151,448		3,652,926
Kansas City Southern Industries Inc.1	261,445		3,634,085
Seacoast Financial Services Corp.	108,408		3,631,668
OM Group Inc.1	119,427		3,630,581
CONMED Corp.1	122,351		3,614,249
EGL Inc.1	199,415		3,581,493
Smith (A.O.) Corp.	123,337		3,570,606
LandAmerica Financial Group Inc.	78,437		3,550,059
InVision Technologies Inc.1	71,259		3,539,435
Aztar Corp.1	144,342		3,537,822
Casey’s General Store Inc.	210,025		3,486,415
UniSource Energy Corp.	141,833		3,484,837
Landry’s Restaurants Inc.	116,008		3,460,519
Group 1 Automotive Inc.1	95,545		3,458,729
Kirby Corp.1	102,155		3,451,817
Aaron Rents Inc.	137,963		3,433,899
American Management Systems Inc.1	178,577		3,428,678
Fuller (H.B.) Co.	120,023		3,413,454
Northwest Natural Gas Co.	108,914		3,403,563
Southwest Gas Corp.	143,356		3,354,530
Coherent Inc.1	126,672		3,330,207
Manitowoc Co. Inc. (The)	111,916		3,310,475
FirstFed Financial Corp.1	71,658		3,305,584
Haemonetics Corp.1	104,860		3,297,847
Hain Celestial Group Inc.1	148,975		3,290,858
G&K Services Inc. Class A	87,814		3,268,437
Province Healthcare Co.1	205,248		3,263,443
CH Energy Group Inc.	66,388		3,258,987
eFunds Corp.1	198,363		3,253,153
THQ Inc.1	160,308		3,243,031
Provident Bankshares Corp.	103,307		3,241,774
Seacor Holdings Inc.1	78,726		3,234,064
Texas Industries Inc.	88,889		3,213,337
Technitrol Inc.1	169,655		3,189,514
Irwin Financial Corp.	118,157		3,187,876
Exar Corp.1	172,230		3,186,255
Watsco Inc.	109,732		3,182,228
DRS Technologies Inc.1	113,538		3,176,793
Sola International Inc.1	134,633		3,130,217
Watts Industries Inc. Class A	133,371		3,119,548
Oceaneering International Inc.1	102,361		3,116,892
Imagistics International Inc.1	70,652		3,112,221
Carpenter Technology Corp.	94,548		3,108,738
DSP Group Inc.1	120,748		3,106,846
Zenith National Insurance Corp.	79,254		3,106,757
IHOP Corp.	89,788		3,092,299
Hutchinson Technology Inc.1	109,656		3,076,947
Electronics Boutique Holdings Corp.1	104,591		3,070,792
Central Parking Corp.	152,675		3,065,714
Wausau-Mosinee Paper Corp.	217,156		3,059,728
Sunrise Senior Living Inc.1	85,244		3,055,997
Ryan’s Family Steak Houses Inc.1	178,085		3,047,034
Russ Berrie & Co. Inc.	86,983		3,044,405
American Italian Pasta Co. Class A	75,783		3,026,015
CIBER Inc.1	274,482		3,019,302
Investment Technology Group Inc.1	196,831		3,011,514
Woodward Governor Co.	46,952		2,992,720
Stewart Information Services Corp.	75,447		2,965,067
Glenborough Realty Trust Inc.	131,716		2,943,853
Veritas DGC Inc.1	142,066		2,940,766

70 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® S&P SMALLCAP 600/BARRA VALUE INDEX FUND

March 31, 2004

Security	Shares	Value
UIL Holdings Corp.	60,929	$	2,934,950
Cambrex Corp.	108,645		2,922,550
Quanex Corp.	68,338		2,903,682
Viasys Healthcare Inc.1	127,348		2,880,612
UICI1	195,077		2,879,337
School Specialty Inc.1	79,434		2,825,467
Arkansas Best Corp.	105,140		2,816,701
El Paso Electric Co.1	202,856		2,807,527
Shaw Group Inc. (The)1	256,061		2,775,701
Electro Scientific Industries Inc.1	117,757		2,772,000
Brown Shoe Co. Inc.	75,795		2,761,212
Cash America International Inc.	119,111		2,745,509
Triarc Companies Inc. Class B	249,562		2,735,200
NCO Group Inc.1	117,017		2,734,687
Gold Bancorp Inc.	166,156		2,708,343
Ionics Inc.1	95,094		2,700,670
Barnes Group Inc.	96,772		2,698,971
Movie Gallery Inc.	137,590		2,695,388
Griffon Corp.1	124,582		2,690,971
Arch Chemicals Inc.	94,828		2,676,994
Nuevo Energy Co.1	82,217		2,676,986
CDI Corp.	82,378		2,659,162
Financial Federal Corp.1	78,540		2,625,592
Checkpoint Systems Inc.1	138,540		2,618,406
Lone Star Steakhouse & Saloon Inc.	89,037		2,598,990
Spherion Corp.1	253,423		2,592,517
Analogic Corp.	56,939		2,590,155
Pinnacle Systems Inc.1	286,150		2,583,935
Jo-Ann Stores Inc.1	91,852		2,576,449
PolyOne Corp.1	386,485		2,570,125
Century Aluminum Co.1	89,310		2,521,221
Sterling Bancshares Inc.	187,042		2,504,492
Russell Corp.	136,836		2,498,625
Schulman (A.) Inc.	126,740		2,490,441
Anchor BanCorp Wisconsin Inc.	96,604		2,468,232
Laclede Group Inc. (The)	80,665		2,444,150
Bowne & Co. Inc.	142,834		2,442,461
Paxar Corp.1	164,793		2,430,697
Photronics Inc.1	136,850		2,427,719
Stein Mart Inc.1	175,784		2,425,819
Umpqua Holdings Corp.	119,603		2,414,785
Phillips-Van Heusen Corp.	128,469		2,376,677
First Republic Bank	61,254		2,361,954
Tredegar Corp.	161,159		2,357,756
EMCOR Group Inc.1	63,336		2,324,431
Universal Forest Products Inc.	74,935		2,312,494
Thomas Industries Inc.	72,718		2,290,617
K2 Inc.1	139,807		2,241,106
Cross Country Healthcare Inc.1	134,474		2,238,992
Remington Oil & Gas Corp.1	113,251		2,236,707
Triumph Group Inc.1	66,800		2,207,740
Esterline Technologies Corp.1	88,733		2,205,015
Offshore Logistics Inc.1	95,150		2,193,208
Datascope Corp.	62,300		2,189,222
Consolidated Graphics Inc.1	56,838		2,185,421
Verity Inc.1	159,431		2,179,422
Swift Energy Co.1	115,618		2,179,399
Gardner Denver Inc.1	80,456		2,178,748
Marcus Corp.	125,146		2,171,283
Dress Barn Inc.1	123,487		2,165,962
Vicor Corp.1	176,372		2,164,084
Nautilus Group Inc. (The)	137,345		2,163,184
General Communication Inc. Class A1	237,328		2,159,685
Prime Hospitality Corp.1	188,417		2,144,185
Rock-Tenn Co. Class A	147,929		2,133,136
Lone Star Technologies Inc.1	120,630		2,131,532
Genesco Inc.1	91,469		2,120,251
Park Electrochemical Corp.	83,343		2,108,578
Regal-Beloit Corp.	105,450		2,106,891
Roto-Rooter Inc.	41,631		2,104,447
Atwood Oceanics Inc.1	58,358		2,076,961
Riggs National Corp.	120,583		2,075,233
Belden Inc.	108,619		2,060,502
Pinnacle Entertainment Inc.1	149,248		2,059,622
Standard Microsystems Corp.1	75,793		2,019,126
GenCorp. Inc.	186,352		2,018,192
Lance Inc.	122,841		2,013,364
International Multifoods Corp.1	81,376		2,011,615
Schweitzer-Mauduit International Inc.	62,226		2,009,900

SCHEDULES OF INVESTMENTS 71

Schedule of Investments (Continued)

iSHARES^® S&P SMALLCAP 600/BARRA VALUE INDEX FUND

March 31, 2004

Security	Shares	Value
EDO Corp.	83,159	$	2,002,469
Valmont Industries Inc.	100,141		2,000,817
Haverty Furniture Companies Inc.	93,452		1,988,659
CTS Corp.	151,969		1,981,676
Goody’s Family Clothing Inc.	138,246		1,972,770
PAREXEL International Corp.1	110,005		1,965,789
Methode Electronics Inc.	150,719		1,944,275
Audiovox Corp. Class A1	96,912		1,938,240
CIMA Labs Inc.1	61,185		1,923,045
Standard Register Co. (The)	119,931		1,922,494
Chesapeake Corp.	80,430		1,919,864
Applied Industrial Technologies Inc.	81,703		1,856,292
Presidential Life Corp.	123,599		1,851,513
Heidrick & Struggles International Inc.1	77,115		1,845,362
Vital Sign Inc.	54,461		1,836,970
Information Holdings Inc.1	87,951		1,813,550
ShopKo Stores Inc.1	123,093		1,799,620
SOURCECORP Inc.1	67,809		1,796,939
C&D Technologies Inc.	107,458		1,795,623
Deltic Timber Corp.	50,425		1,789,079
DuPont Photomasks Inc.1	76,665		1,783,228
JDA Software Group Inc.1	122,161		1,777,443
Stewart & Stevenson Services Inc.	120,558		1,762,558
Stride Rite Corp.	165,749		1,758,597
Insituform Technologies Inc. Class A1	111,473		1,742,323
Duane Reade Inc.1	102,847		1,742,228
Cato Corp. Class A	86,382		1,734,551
Hologic Inc.1	85,048		1,722,222
Jill (J.) Group Inc. (The)1	83,880		1,721,218
Interface Inc. Class A1	216,351		1,719,990
Hooper Holmes Inc.	272,993		1,703,476
Cohu Inc.	90,286		1,683,834
Cable Design Technologies Corp.1	176,898		1,676,993
J&J Snack Foods Corp.1	37,084		1,675,455
Symmetricom Inc.1	186,637		1,674,134
Orthodontic Centers of America Inc.1	211,247		1,668,851
W-H Energy Services Inc.1	114,972		1,663,645
Input/Output Inc.1	214,495		1,662,336
AAR Corp.1	135,032		1,658,193
O’Charley’s Inc.1	89,171		1,627,371
Buckeye Technologies Inc.1	156,186		1,618,087
Itron Inc.1	86,604		1,611,700
Agilysys Inc.	135,323		1,610,344
RadiSys Corp.1	76,347		1,595,652
Jakks Pacific Inc.1	105,626		1,584,390
Volt Information Sciences Inc.1	64,135		1,567,459
American States Water Co.	64,056		1,562,966
Myers Industries Inc.	127,036		1,562,543
Frontier Airlines Inc.1	149,704		1,559,916
Bel Fuse Inc. Class B	46,947		1,537,045
Sturm Ruger & Co. Inc.	113,399		1,532,020
Brush Engineered Materials Inc.1	70,422		1,427,454
Apogee Enterprises Inc.	115,254		1,421,082
Kaman Corp. Class A	94,622		1,412,706
Standex International Corp.	51,513		1,390,851
Atlantic Coast Airlines Holdings Inc.1	191,040		1,388,861
Caraustar Industries Inc.1	118,619		1,381,911
RTI International Metals Inc.1	87,283		1,381,690
Ryerson Tull Inc.	104,753		1,371,217
Skyline Corp.	35,123		1,354,694
RehabCare Group Inc.1	67,927		1,350,389
DIMON Inc.	190,139		1,349,987
Astec Industries Inc.1	82,538		1,329,687
Robbins & Myers Inc.	60,896		1,312,309
Lawson Products Inc.	39,738		1,295,856
Standard Motor Products Inc.	82,584		1,294,917
SWS Group Inc.	72,261		1,294,195
Hancock Fabrics Inc.	78,700		1,250,543
Great Atlantic & Pacific Tea Co.1	161,175		1,247,494
Pegasus Solutions Inc.1	104,726		1,223,200
MRO Software Inc.1	104,464		1,213,872
Pericom Semiconductor Corp.1	105,599		1,212,277
Nash Finch Co.	50,663		1,199,700
Dril-Quip Inc.1	72,373		1,189,812

72 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® S&P SMALLCAP 600/BARRA VALUE INDEX FUND

March 31, 2004

Security	Shares	Value
Tower Automotive Inc.1	235,867	$	1,188,770
Action Performance Companies Inc.	77,228		1,179,272
NUI Corp.	67,085		1,134,407
PRG-Schultz International Inc.1	257,641		1,133,620
Pope & Talbot Inc.	65,504		1,126,014
Central Vermont Public Service Corp.	49,956		1,124,010
Alliance Semiconductor Corp.1	147,049		1,119,043
Wellman Inc.	133,543		1,115,084
Applica Inc.1	99,079		1,113,648
National Presto Industries Inc.	28,545		1,106,404
Coachmen Industries Inc.	64,970		1,083,700
MapInfo Corp.1	81,855		1,044,470
Mobile Mini Inc.1	60,089		1,039,540
Wet Seal Inc. Class A1	125,752		1,037,454
Cascade Natural Gas Corp.	46,859		1,021,058
Quaker Chemical Corp.	40,114		1,018,896
Network Equipment Technologies Inc.1	101,077		1,008,748
Steel Technologies Inc.	51,368		992,430
SBS Technologies Inc.1	63,798		986,317
Building Materials Holdings Corp.	56,172		985,819
Bassett Furniture Industries Inc.	48,772		967,149
Savient Pharmaceuticals Inc.1	249,397		942,721
Boston Communications Group Inc.1	77,239		915,282
Tollgrade Communications Inc.1	56,907		908,236
Magnetek Inc.1	119,531		903,654
Supertex Inc.1	53,778		897,017
PC-Tel Inc.1	86,033		888,721
OMNOVA Solutions Inc.1	166,878		876,110
Planar Systems Inc.1	61,509		875,273
Digi International Inc.1	88,019		868,748
Nature’s Sunshine Products Inc.	58,312		865,350
Angelica Corp.	37,106		847,130
Bally Total Fitness Holding Corp.1	142,529		835,220
Department 56 Inc.1	55,153		815,161
Bell Microproducts Inc.1	111,299		801,353
Advanced Marketing Services Inc.	79,842		790,436
Concord Camera Corp.1	119,254		748,915
Captaris Inc.1	134,767		741,218
Curative Health Services Inc.1	53,828		721,295
ArQule Inc.1	117,756		699,471
Insurance Auto Auctions Inc.1	48,134		699,387
Lydall Inc.1	68,552		699,230
NYFIX Inc.1	133,249		687,565
Theragenics Corp.1	125,503		675,206
Enesco Group Inc.1	58,240		669,760
Material Sciences Corp.	59,748		657,228
Gerber Scientific Inc.1	92,799		631,033
Roxio Inc.1	140,605		628,504
IMCO Recycling Inc.1	64,486		607,458
Penford Corp.	36,291		604,608
Castle (A.M.) & Co.1	65,623		593,232
Butler Manufacturing Co.	26,375		592,119
On Assignment Inc.1	105,258		588,392
Three-Five Systems Inc.1	88,896		582,269
CryoLife Inc.1	97,290		578,875
Haggar Corp.	28,569		571,380
Phoenix Technologies Ltd.1	102,062		550,114
Green Mountain Power Corp.	20,857		539,571
Commonwealth Industries Inc.	67,384		492,577
Ashworth Inc.1	56,179		488,757
Intermet Corp.	107,726		484,767
Osteotech Inc.1	71,646		462,117
Salton Inc.1	47,120		441,514
SCM Microsystems Inc.1	64,280		431,319
Wolverine Tube Inc.1	50,683		425,230
Cross (A.T.) Co. Class A1	63,412		413,446
Ultimate Electronics Inc.1	61,973		404,684
SCPIE Holdings Inc.	41,484		340,169
Meade Instruments Corp.1	83,083		335,655
Huffy Corp.1	67,469		263,129
TOTAL COMMON STOCKS (Cost: $893,279,909)			1,019,916,123

SCHEDULES OF INVESTMENTS 73

Schedule of Investments (Continued)

iSHARES^® S&P SMALLCAP 600/BARRA VALUE INDEX FUND

March 31, 2004

Security	Shares or Principal		Value
SHORT-TERM INVESTMENTS – 22.78%
MONEY MARKET FUNDS – 8.59%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares2,3		60,193,691	$	60,193,691
Barclays Global Investors Funds Prime Money Market Fund, Institutional Shares2,3		21,458,664		21,458,664
BlackRock Temp Cash Money Market Fund2		1,004,434		1,004,434
Short-Term Investment Co.– Liquid Assets Money Market Portfolio2		5,001,941		5,001,941
				87,658,730
FLOATING RATE NOTES – 4.64%
Beta Finance Inc.
1.05%, 05/20/042,4	$	975,394		975,374
1.05%, 09/15/042,4		1,950,788		1,950,699
1.06%, 10/12/042,4		975,394		975,343
1.14%, 08/23/042,4		975,394		975,722
CC USA Inc.
1.05%, 04/19/042,4		858,347		858,344
1.06%, 05/24/042,4		1,950,788		1,950,760
1.09%, 07/15/042,4		975,394		975,495
1.51%, 02/15/052,4		1,268,012		1,269,776
Dorada Finance Inc.
1.04%, 07/01/042		682,776		680,981
1.05%, 05/20/042,4		1,950,788		1,950,748
1.24%, 08/09/042		487,697		487,671
1.48%, 01/18/052,4		1,463,091		1,463,033
Five Finance Inc.
1.06%, 04/15/042,4		975,394		975,394
HBOS Treasury Services PLC
1.10%, 04/22/052		1,950,788		1,950,788
Holmes Financing PLC
1.05%, 04/15/042		195,079		195,079

Security	Principal		Value
K2 USA LLC
1.05%, 08/16/042,4	$	487,697	$	487,670
1.05%, 09/27/042,4		2,106,851		2,106,696
1.06%, 04/13/042		975,394		975,392
1.06%, 05/17/042		975,394		975,388
1.46%, 01/12/052,4		975,394		975,318
Links Finance LLC
1.05%, 06/28/042		975,394		975,347
1.06%, 05/04/042		975,394		975,389
1.06%, 07/20/042		780,315		780,268
Nationwide Building Society
1.09%, 07/23/042,4		1,463,091		1,463,091
1.11%, 12/28/042,4		1,950,788		1,950,788
Northern Rock PLC
1.11%, 01/13/052,4		1,853,248		1,853,248
Permanent Financing PLC
1.04%, 03/10/052		1,950,788		1,950,788
1.05%, 12/10/042		975,394		975,394
Sigma Finance Inc.
1.05%, 07/01/042		975,394		975,333
1.06%, 07/20/042		975,394		975,335
1.09%, 10/07/042		1,950,788		1,950,586
1.24%, 08/06/042		487,697		487,680
Tango Finance Corp.
1.05%, 01/18/052,4		858,347		858,277
1.06%, 07/15/042,4		585,236		585,181
1.07%, 02/25/052,4		1,092,441		1,092,244
1.10%, 07/06/042,4		585,236		585,221
WhistleJacket Capital LLC
1.05%, 09/15/042,4		975,394		975,305
1.32%, 02/04/052,4		487,697		487,615
White Pine Finance LLC
1.04%, 08/26/042,4		975,394		975,333
1.05%, 11/15/042,4		1,170,473		1,170,473
1.06%, 04/20/042,4		975,394		975,394
1.06%, 07/06/042,4		1,170,473		1,170,443
				47,344,404

74 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® S&P SMALLCAP 600/BARRA VALUE INDEX FUND

March 31, 2004

Security	Principal		Value
COMMERCIAL PAPER – 4.28%
Alpine Securitization Corp.
1.03%, 04/14/042	$	916,870	$	916,529
1.03%, 04/20/042		975,394		974,864
1.03%, 04/23/042		1,150,965		1,150,240
1.03%, 04/26/042		975,394		974,696
Amsterdam Funding Corp.
1.03%, 05/05/042		790,069		789,300
Barton Capital Corp.
1.03%, 04/02/042		1,016,536		1,016,507
Blue Ridge Asset Funding Corp.
1.02%, 04/23/042		585,236		584,871
1.03%, 05/21/042		975,394		973,998
Corporate Asset Funding
1.05%, 05/21/042		1,014,410		1,012,937
Corporate Receivables Corp.
1.03%, 04/07/042		975,394		975,226
1.04%, 06/03/042		1,950,788		1,947,237
Delaware Funding Corp.
1.03%, 04/02/042		975,394		975,366
1.03%, 05/05/042		1,464,710		1,463,285
1.03%, 05/21/042		487,697		486,999
Edison Asset Securitization
1.07%, 09/21/042		975,394		970,378
Eureka Securitization Inc.
1.03%, 05/25/042		390,158		389,555
1.04%, 04/14/042		1,170,473		1,170,033
Falcon Asset Securitization
1.03%, 04/15/042		1,172,287		1,171,817
1.03%, 04/22/042		1,150,965		1,150,273
1.03%, 04/30/042		975,394		974,585
Galaxy Funding Inc.
1.05%, 05/17/042		975,394		974,091
Gemini Securitization Corp.
1.03%, 04/20/042		585,626		585,308
1.03%, 04/23/042		1,127,302		1,126,592
1.03%, 04/30/042		683,615		683,047
1.03%, 05/24/042		487,697		486,957
1.04%, 04/19/042		487,697		487,444
GIRO Funding US Corp.
1.05%, 05/19/042		487,697		487,014
Jupiter Securitization Corp.
1.03%, 04/16/042		1,950,788		1,949,950
1.03%, 04/19/042		2,633,563		2,632,207
1.03%, 04/28/042		1,170,473		1,169,568
1.03%, 04/30/042		1,661,583		1,660,205
Liberty Street Funding Corp.
1.04%, 04/08/042		683,478		683,340
1.05%, 04/05/042		790,069		789,977
Polonius Inc.
1.04%, 05/21/042		1,128,531		1,126,901
Preferred Receivables Funding Corp.
1.03%, 04/19/042		2,048,327		2,047,272
1.04%, 04/23/042		2,243,406		2,241,980
1.04%, 05/20/042		487,697		487,007
Receivables Capital Corp.
1.04%, 04/14/042		858,347		858,025
Scaldis Capital LLC
1.05%, 06/30/042		698,382		696,549
Thames Asset Global Securitization No. 1 Inc.
1.03%, 04/19/042		975,394		974,891
Thunder Bay Funding Inc.
1.03%, 04/19/042		620,448		620,128
1.04%, 04/29/042		878,635		877,924
				43,715,073
TIME DEPOSITS – 3.66%
Abbey National Treasury Services PLC
1.08%, 04/01/042		6,827,757		6,827,757
1.33%, 02/10/052		975,394		975,268
1.39%, 02/02/052		975,394		975,271
1.40%, 10/25/042		1,950,788		1,950,622
Bank of New York
1.39%, 11/01/042		1,950,788		1,950,673
Bank of Nova Scotia
1.24%, 10/07/042		1,463,091		1,463,015
1.42%, 10/29/042		1,463,091		1,463,154

SCHEDULES OF INVESTMENTS 75

Schedule of Investments (Continued)

iSHARES^® S&P SMALLCAP 600/BARRA VALUE INDEX FUND

March 31, 2004

Security	Principal		Value
Canadian Imperial Bank of Commerce
1.24%, 10/07/042	$	1,463,091	$	1,462,977
1.38%, 11/22/042		487,697		487,721
1.40%, 10/29/042		1,950,788		1,950,759
National City Bank (Cleveland, Ohio)
1.02%, 04/01/042		2,926,181		2,926,181
Toronto-Dominion Bank
1.04%, 06/22/042		487,697		487,697
1.22%, 03/23/052		3,413,878		3,413,295
1.34%, 02/10/052		780,315		780,214
1.41%, 11/01/042		1,463,091		1,463,006
UBS Finance (Delaware)
1.06%, 04/01/042		3,901,575		3,901,575
1.10%, 09/08/042		1,950,788		1,941,250
1.11%, 12/17/042		2,926,181		2,902,724
				37,323,159
REPURCHASE AGREEMENTS – 1.15%
Bank of America, NA
1.06%, 04/01/042		3,901,575		3,901,575
Goldman, Sachs & Co.
1.08%, 04/01/042		7,803,151		7,803,151
				11,704,726
U.S. GOVERNMENT AGENCY NOTES – 0.46%
Federal Home Loan Mortgage Corporation
1.15%, 05/12/042		1,463,091		1,461,174
1.28%, 08/19/042		780,315		776,431
Federal National Mortgage Association
1.28%, 08/20/042		2,536,024		2,523,307
				4,760,912
TOTAL SHORT-TERM INVESTMENTS (Cost: $232,507,004)				232,507,004
TOTAL INVESTMENTS IN SECURITIES – 122.71% (Cost: $1,125,786,913)				1,252,423,127
Other Assets, Less Liabilities – (22.71%)				(231,788,712	)
NET ASSETS – 100.00%				1,020,634,415

¹ Non-income earning securities.

² All or a portion of this security represents investments of securities lending collateral.

³ Issuer is an affiliate of the Fund’s investment advisor. See Note 2.

⁴ Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

See notes to financial statements.

76 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® S&P 1500 INDEX FUND

March 31, 2004

Security	Shares	Value
COMMON STOCKS – 99.90%
General Electric Co.	50,796	$	1,550,294
Exxon Mobil Corp.	32,660		1,358,329
Microsoft Corp.	53,762		1,342,437
Pfizer Inc.	37,976		1,331,059
Citigroup Inc.	25,654		1,326,312
Wal-Mart Stores Inc.	21,554		1,286,558
American International Group Inc.	12,990		926,836
Intel Corp.	32,283		878,098
Cisco Systems Inc.1	34,215		804,737
International Business Machines Corp.	8,460		776,966
Johnson & Johnson	14,813		751,315
Procter & Gamble Co.	6,451		676,581
Coca-Cola Co. (The)	12,207		614,012
Bank of America Corp.	7,234		585,809
Altria Group Inc.	10,219		556,425
Verizon Communications Inc.	13,789		503,850
Merck & Co. Inc.	11,107		490,818
Wells Fargo & Company	8,449		478,805
ChevronTexaco Corp.	5,342		468,921
PepsiCo Inc.	8,541		459,933
JP Morgan Chase & Co.	10,279		431,204
Dell Inc.1	12,788		429,933
Home Depot Inc.	11,364		424,559
SBC Communications Inc.	16,522		405,450
United Parcel Service Inc. Class B	5,616		392,221
Time Warner Inc.1	22,743		383,447
Lilly (Eli) & Co.	5,614		375,577
Amgen Inc.1	6,444		374,847
Fannie Mae	4,854		360,895
Hewlett-Packard Co.	15,240		348,082
Viacom Inc. Class B	8,740		342,695
American Express Co.	6,427		333,240
Comcast Corp. Class A1	11,248		323,268
Abbott Laboratories	7,812		321,073
3M Co.	3,916		320,603
Morgan Stanley	5,480		314,004
Oracle Corp.1	26,124		313,749
Wachovia Corp.	6,570		308,790
Bank One Corp.	5,592		304,876
Merrill Lynch & Co. Inc.	4,847		288,687
Medtronic Inc.	6,017		287,312
Tyco International Ltd.	9,996		286,385
QUALCOMM Inc.	3,995		265,348
U.S. Bancorp	9,529		263,477
Walt Disney Co. (The)	10,224		255,498
Texas Instruments Inc.	8,652		252,811
Goldman Sachs Group Inc. (The)	2,414		251,901
BellSouth Corp.	9,087		251,619
Wyeth	6,660		250,083
FleetBoston Financial Corp.	5,312		238,509
ConocoPhillips	3,408		237,912
Bristol-Myers Squibb Co.	9,696		234,934
eBay Inc.1	3,228		223,797
United Technologies Corp.	2,574		222,136
Lowe’s Companies Inc.	3,936		220,928
Du Pont (E.I.) de Nemours and Co.	4,980		210,256
Anheuser-Busch Companies Inc.	4,068		207,468
Target Corp.	4,560		205,382
Motorola Inc.	11,640		204,864
Freddie Mac	3,446		203,521
UnitedHealth Group Inc.	3,124		201,311
Gillette Co. (The)	4,992		195,187
Washington Mutual Inc.	4,500		192,195
Dow Chemical Co. (The)	4,655		187,503
Schlumberger Ltd.	2,928		186,953
First Data Corp.	4,399		185,462
AT&T Wireless Services Inc.1	13,572		184,715
Applied Materials Inc.1	8,416		179,934
McDonald’s Corp.	6,253		178,648
MBNA Corp.	6,384		176,390
Boston Scientific Corp.1	4,092		173,419
Boeing Co. (The)	4,200		172,494
Walgreen Co.	5,124		168,836
EMC Corp.1	12,012		163,483
Yahoo! Inc.1	3,331		161,853
Allstate Corp. (The)	3,516		159,837
Kimberly-Clark Corp.	2,483		156,677
Fifth Third Bancorp	2,798		154,925
Alcoa Inc.	4,332		150,277
Cardinal Health Inc.	2,160		148,824
Honeywell International Inc.	4,308		145,826

SCHEDULES OF INVESTMENTS 77

Schedule of Investments (Continued)

iSHARES^® S&P 1500 INDEX FUND

March 31, 2004

Security	Shares	Value
Colgate-Palmolive Co.	2,636	$	145,244
Carnival Corp.	3,144		141,197
Caterpillar Inc.	1,740		137,582
Nextel Communications Inc. Class A1	5,496		135,916
MetLife Inc.	3,804		135,727
General Motors Corp.	2,808		132,257
Forest Laboratories Inc.1	1,824		130,635
Clear Channel Communications Inc.	3,072		130,099
Emerson Electric Co.	2,100		125,832
Sysco Corp.	3,188		124,491
Ford Motor Company	9,156		124,247
Cendant Corp.	5,064		123,511
Marsh & McLennan Companies Inc.	2,652		122,788
Automatic Data Processing Inc.	2,917		122,514
Bank of New York Co. Inc. (The)	3,864		121,716
Illinois Tool Works Inc.	1,536		121,697
Prudential Financial Inc.	2,700		120,906
Gannett Co. Inc.	1,356		119,518
Schering-Plough Corp.	7,344		119,120
Lehman Brothers Holdings Inc.	1,385		114,775
Exelon Corp.	1,632		112,396
FedEx Corp.	1,488		111,838
Southern Company	3,660		111,630
National City Corp.	3,036		108,021
Dominion Resources Inc.	1,620		104,166
AFLAC Inc.	2,568		103,080
Lockheed Martin Corp.	2,256		102,964
Duke Energy Corp.	4,536		102,514
Nike Inc. Class B	1,308		101,854
International Paper Co.	2,400		101,424
Newmont Mining Corp.	2,160		100,721
HCA Inc.	2,472		100,413
Guidant Corp.	1,560		98,857
Gap Inc. (The)	4,476		98,114
SunTrust Banks Inc.	1,404		97,873
BB&T Corp.	2,736		96,581
Progressive Corp. (The)	1,080		94,608
SLM Corp.	2,256		94,414
Baxter International Inc.	3,048		94,153
Hartford Financial Services Group Inc.	1,455		92,683
Northrop Grumman Corp.	933		91,826
Biogen Idec Inc.1	1,632		90,739
Analog Devices Inc.	1,878		90,163
Zimmer Holdings Inc.1	1,212		89,421
Countrywide Financial Corp.	924		88,612
Occidental Petroleum Corp.	1,920		88,416
Stryker Corp.	996		88,176
WellPoint Health Networks Inc.1	775		88,133
Avon Products Inc.	1,161		88,085
General Dynamics Corp.	984		87,901
General Mills Inc.	1,872		87,385
State Street Corp.	1,668		86,953
Capital One Financial Corp.	1,152		86,895
Travelers Property Casualty Corp. Class B	5,016		86,626
Sara Lee Corp.	3,948		86,303
Lucent Technologies Inc.1	20,964		86,162
Costco Wholesale Corp.1	2,292		86,088
Waste Management Inc.	2,843		85,802
Golden West Financial Corp.	756		84,634
Best Buy Co. Inc.	1,620		83,786
Deere & Co.	1,200		83,172
Sprint Corp. (FON Group)	4,512		83,156
Tribune Co.	1,634		82,419
Kohls Corp.1	1,704		82,354
Harley-Davidson Inc.	1,512		80,650
Electronic Arts Inc.1	1,488		80,292
Kellogg Co.	2,040		80,050
Schwab (Charles) Corp. (The)	6,780		78,716
Alltel Corp.	1,560		77,828
International Game Technology Inc.	1,728		77,691
Computer Associates International Inc.	2,892		77,679
Maxim Integrated Products Inc.	1,644		77,416
AT&T Corp.	3,948		77,262
PNC Financial Services Group	1,392		77,145
Union Pacific Corp.	1,272		76,091
Omnicom Group Inc.	948		76,077
Apollo Group Inc. Class A1	876		75,432
Agilent Technologies Inc.1	2,376		75,153
Corning Inc.1	6,648		74,325
Caremark Rx Inc.1	2,230		74,134
Starbucks Corp.1	1,956		73,839

78 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® S&P 1500 INDEX FUND

March 31, 2004

Security	Shares	Value
McGraw-Hill Companies Inc. (The)	960	$	73,094
ConAgra Foods Inc.	2,688		72,415
Weyerhaeuser Co.	1,104		72,312
Danaher Corp.	768		71,708
Symantec Corp.1	1,536		71,117
Franklin Resources Inc.	1,260		70,157
Apache Corp.	1,620		69,935
CVS Corp.	1,968		69,470
Aetna Inc.	768		68,905
Sun Microsystems Inc.1	16,332		67,941
Entergy Corp.	1,140		67,830
Masco Corp.	2,225		67,729
Devon Energy Corp.	1,164		67,687
Mellon Financial Corp.	2,148		67,211
Paychex Inc.	1,884		67,070
Wrigley (William Jr.) Co.	1,128		66,687
Halliburton Co.	2,184		66,372
Heinz (H.J.) Co.	1,764		65,780
Anadarko Petroleum Corp.	1,260		65,344
Xilinx Inc.1	1,716		65,208
American Electric Power Co. Inc.	1,980		65,182
Chubb Corp.	936		65,089
Raytheon Co.	2,076		65,062
FirstEnergy Corp.	1,644		64,247
KeyCorp	2,100		63,609
Burlington Resources Inc.	996		63,375
Anthem Inc.1	696		63,085
Hancock (John) Financial Services Inc.	1,440		62,914
Staples Inc.1	2,472		62,764
St. Jude Medical Inc.1	864		62,294
Kroger Co.1	3,720		61,901
TJX Companies Inc.	2,520		61,891
FPL Group Inc.	924		61,769
Becton, Dickinson & Co.	1,272		61,667
Bed Bath & Beyond Inc.1	1,476		61,638
Baker Hughes Inc.	1,680		61,286
PG&E Corp.1	2,076		60,142
ACE Ltd.	1,392		59,383
Praxair Inc.	1,596		59,243
Broadcom Corp. Class A1	1,512		59,225
Burlington Northern Santa Fe Corp.	1,860		58,590
Lexmark International Inc.1	636		58,512
Ingersoll-Rand Co. Class A	860		58,179
Equity Office Properties Trust	2,004		57,896
Marathon Oil Corp.	1,718		57,845
Linear Technology Corp.	1,560		57,751
Principal Financial Group Inc.	1,620		57,721
Xerox Corp.1	3,960		57,697
Progress Energy Inc.	1,224		57,626
Veritas Software Corp.1	2,136		57,480
Air Products & Chemicals Inc.	1,140		57,137
Gilead Sciences Inc.1	1,008		56,216
Simon Property Group Inc.	960		56,102
Fortune Brands Inc.	732		56,093
Yum! Brands Inc.1	1,476		56,073
Campbell Soup Co.	2,052		55,958
Southwest Airlines Co.	3,936		55,931
Johnson Controls Inc.	942		55,719
Public Service Enterprise Group Inc.	1,176		55,248
Coca-Cola Enterprises Inc.	2,280		55,108
SouthTrust Corp.	1,656		54,913
Loews Corp.	924		54,571
Allergan Inc.	648		54,536
Archer-Daniels-Midland Co.	3,228		54,456
M&T Bank Corp.	600		53,910
Hershey Foods Corp.	648		53,687
Univision Communications Inc. Class A1	1,608		53,080
Moody’s Corp.	744		52,675
Genzyme Corp.1	1,116		52,497
XL Capital Ltd. Class A	684		52,011
Clorox Co.	1,056		51,649
Limited Brands Inc.	2,580		51,600
Northern Trust Corp.	1,104		51,435
Micron Technology Inc.1	3,048		50,932
May Department Stores Co. (The)	1,440		49,795
Consolidated Edison Inc.	1,128		49,745
PPG Industries Inc.	852		49,672
PACCAR Inc.	882		49,604
Pitney Bowes Inc.	1,164		49,598
Biomet Inc.	1,284		49,254
Marriott International Inc. Class A	1,152		49,018

SCHEDULES OF INVESTMENTS 79

Schedule of Investments (Continued)

iSHARES^® S&P 1500 INDEX FUND

March 31, 2004

Security	Shares	Value
Apple Computer Inc.1	1,812	$	49,015
KLA-Tencor Corp.1	972		48,940
Federated Department Stores Inc.	900		48,645
Unocal Corp.	1,296		48,315
Monsanto Co.	1,308		47,964
Comerica Inc.	876		47,584
Sprint Corp. (PCS Group)1	5,172		47,582
Penney (J.C.) Co. Inc. (Holding Co.)	1,368		47,579
Sears, Roebuck and Co.	1,090		46,826
Electronic Data Systems Corp.	2,400		46,440
TXU Corp.	1,620		46,429
New York Community Bancorp Inc.	1,350		46,278
Medco Health Solutions Inc.1	1,356		46,104
Adobe Systems Inc.	1,164		45,896
St. Paul Companies Inc.	1,140		45,611
Safeway Inc.1	2,208		45,441
Bear Stearns Companies Inc. (The)	518		45,418
Block (H & R) Inc.	888		45,315
MBIA Inc.	720		45,144
Intuit Inc.1	996		44,700
Rohm & Haas Co.	1,116		44,461
Transocean Inc.1	1,594		44,457
AON Corp.	1,572		43,874
McKesson Corp.	1,452		43,691
Norfolk Southern Corp.	1,956		43,208
Eaton Corp.	768		43,154
Georgia-Pacific Corp.	1,272		42,854
Lennar Corp. Class A	792		42,792
Quest Diagnostics Inc.	516		42,740
Marshall & Ilsley Corp.	1,128		42,650
Washington Post Company (The) Class B	48		42,452
Lincoln National Corp.	888		42,020
Ameren Corp.	909		41,896
CIGNA Corp.	708		41,786
D.R. Horton Inc.	1,176		41,666
Chiron Corp.1	936		41,193
Equity Residential	1,380		41,193
AmSouth Bancorp	1,752		41,189
American Standard Companies Inc.1	360		40,950
Regions Financial Corp.	1,116		40,756
Albertson’s Inc.	1,836		40,667
PPL Corp.	888		40,493
Starwood Hotels & Resorts Worldwide Inc.	995		40,297
Ambac Financial Group Inc.	540		39,841
Edison International	1,632		39,641
Mattel Inc.	2,148		39,609
Charter One Financial Inc.	1,116		39,462
SunGard Data Systems Inc.1	1,440		39,456
Pepsi Bottling Group Inc.	1,320		39,270
Dover Corp.	1,008		39,080
Jefferson-Pilot Corp.	708		38,947
Altera Corp.1	1,896		38,773
National Semiconductor Corp.1	867		38,521
Phelps Dodge Corp.1	471		38,462
AutoZone Inc.1	444		38,171
Valero Energy Corp.	636		38,135
Qwest Communications International Inc.1	8,844		38,118
Coach Inc.1	924		37,875
Kinder Morgan Inc.	600		37,812
Computer Sciences Corp.1	936		37,749
Eastman Kodak Co.	1,428		37,371
Network Appliance Inc.1	1,728		37,066
Cintas Corp.	852		37,053
Synovus Financial Corp.	1,512		36,968
Ecolab Inc.	1,284		36,632
Textron Inc.	684		36,355
Cinergy Corp.	888		36,310
Sempra Energy	1,128		35,870
Xcel Energy Inc.	1,992		35,477
Cincinnati Financial Corp.	804		34,934
ITT Industries Inc.	456		34,806
Fiserv Inc.1	972		34,768
Pulte Homes Inc.	624		34,694
PeopleSoft Inc.1	1,872		34,613
DTE Energy Co.	840		34,566
Avery Dennison Corp.	552		34,340
BJ Services Co.1	792		34,270
Affiliated Computer Services Inc. Class A1	660		34,254
Centex Corp.	624		33,733

80 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® S&P 1500 INDEX FUND

March 31, 2004

Security	Shares	Value
T. Rowe Price Group Inc.	624	$	33,590
Constellation Energy Group Inc.	840		33,558
Freeport-McMoRan Copper & Gold Inc.	858		33,539
Nabors Industries Ltd.1	732		33,489
Parker Hannifin Corp.	588		33,222
Avaya Inc.1	2,088		33,157
New York Times Co. Class A	744		32,885
Rockwell Automation Inc.	936		32,451
Fidelity National Financial Inc.	818		32,393
Donnelley (R.R.) & Sons Co.	1,070		32,367
CSX Corp.	1,068		32,350
ProLogis	900		32,283
Dollar General Corp.	1,680		32,256
North Fork Bancorp Inc.	756		31,994
Interpublic Group of Companies Inc.1	2,076		31,929
Newell Rubbermaid Inc.	1,368		31,738
Tyson Foods Inc. Class A	1,752		31,624
MGIC Investment Corp.	492		31,601
Sovereign Bancorp Inc.	1,464		31,359
L-3 Communications Holdings Inc.	526		31,286
Legg Mason Inc.	336		31,174
Family Dollar Stores Inc.	864		31,061
AmerisourceBergen Corp.	564		30,840
Hilton Hotels Corp.	1,896		30,810
Mylan Laboratories Inc.	1,344		30,549
Torchmark Corp.	564		30,338
Harrah’s Entertainment Inc.	552		30,299
KeySpan Corp.	792		30,270
SAFECO Corp.	696		30,046
UST Inc.	828		29,891
First Tennessee National Corp.	624		29,765
Plum Creek Timber Co. Inc.	912		29,622
Express Scripts Inc.1	396		29,538
GreenPoint Financial Corp.	672		29,373
Office Depot Inc.1	1,560		29,359
Jabil Circuit Inc.1	996		29,312
JDS Uniphase Corp.1	7,176		29,206
National Commerce Financial Corp.	1,020		29,182
XTO Energy Inc.	1,155		29,152
Knight Ridder Inc.	396		29,007
Varian Medical Systems Inc.1	336		29,000
Amerada Hess Corp.	444		28,984
Molex Inc.	948		28,810
Murphy Oil Corp.	456		28,714
Brown-Forman Corp. Class B	600		28,596
Siebel Systems Inc.1	2,484		28,591
Career Education Corp.1	504		28,547
MedImmune Inc.1	1,236		28,527
Sanmina-SCI Corp.1	2,580		28,406
CDW Corp.	420		28,396
Union Planters Corp.	948		28,298
Genuine Parts Co.	864		28,270
Advanced Micro Devices Inc.1	1,740		28,240
MeadWestvaco Corp.	996		28,177
Sherwin-Williams Co. (The)	732		28,131
Rockwell Collins Inc.	888		28,070
Delphi Corp.	2,808		27,968
Tiffany & Co.	732		27,940
IMS Health Inc.	1,200		27,912
Health Management Associates Inc. Class A	1,200		27,852
NiSource Inc.	1,308		27,795
Mohawk Industries Inc.1	336		27,670
Microchip Technology Inc.	1,032		27,410
Banknorth Group Inc.	804		27,368
Nordstrom Inc.	684		27,292
RadioShack Corp.	816		27,059
Smith International Inc.1	504		26,969
Cooper Industries Ltd.	468		26,760
Weatherford International Ltd.1	633		26,605
AES Corp. (The)1	3,108		26,511
EOG Resources Inc.	576		26,433
Dean Foods Co.1	780		26,052
Kerr-McGee Corp.	504		25,956
Noble Corp.1	672		25,818
Harman International Industries Inc.	324		25,790
Bard (C.R.) Inc.	264		25,777
R.J. Reynolds Tobacco Holdings Inc.	420		25,410
Zions Bancorporation	444		25,397
Compass Bancshares Inc.	612		25,380
Millennium Pharmaceuticals Inc.1	1,500		25,350
Commerce Bancorp Inc.	384		25,298

SCHEDULES OF INVESTMENTS 81

Schedule of Investments (Continued)

iSHARES^® S&P 1500 INDEX FUND

March 31, 2004

Security	Shares	Value
Huntington Bancshares Inc.	1,140	$	25,297
VF Corp.	540		25,218
Waters Corp.1	612		24,994
Williams Companies Inc.	2,592		24,805
Scientific-Atlanta Inc.	756		24,449
E*TRADE Financial Corp.1	1,824		24,350
Nucor Corp.	396		24,346
Novellus Systems Inc.1	756		24,033
Whirlpool Corp.	348		23,967
Sunoco Inc.	384		23,954
Vulcan Materials Co.	504		23,910
Unisys Corp.1	1,656		23,648
Everest Re Group Ltd.	276		23,581
AutoNation Inc.1	1,380		23,529
McCormick & Co. Inc.	696		23,330
Ross Stores Inc.	756		23,141
Barr Pharmaceuticals Inc.1	504		23,134
Watson Pharmaceuticals Inc.1	540		23,107
Thermo Electron Corp.1	816		23,076
Patterson Dental Co.1	336		23,053
Jones Apparel Group Inc.	636		22,991
Wendy’s International Inc.	564		22,949
American Power Conversion Corp.	996		22,918
Teradyne Inc.1	960		22,877
Omnicare Inc.	516		22,874
Leggett & Platt Inc.	960		22,762
Synopsys Inc.1	780		22,589
Whole Foods Market Inc.	300		22,485
SanDisk Corp.1	792		22,469
IVAX Corp.1	984		22,406
Old Republic International Corp.	912		22,399
BMC Software Inc.1	1,128		22,052
Grainger (W.W.) Inc.	456		21,888
Black & Decker Corp.	384		21,865
United States Steel Corp.	582		21,691
El Paso Corp.	3,048		21,671
NVIDIA Corp.1	816		21,616
UNUMProvident Corp.	1,476		21,594
Republic Services Inc.	792		21,439
Allied Waste Industries Inc.1	1,608		21,402
Novell Inc.1	1,872		21,303
Hillenbrand Industries Inc.	312		21,182
ENSCO International Inc.	744		20,958
Sealed Air Corp.1	420		20,887
Expeditors International Washington Inc.	528		20,851
Applera Corp. – Applied Biosystems Group	1,044		20,650
NCR Corp.1	468		20,620
Fastenal Co.	384		20,617
Manpower Inc.	443		20,599
Darden Restaurants Inc.	828		20,526
SUPERVALU Inc.	672		20,523
Mercury Interactive Corp.1	456		20,429
Hormel Foods Corp.	696		20,414
Telephone & Data Systems Inc.	287		20,340
Lear Corp.	327		20,261
King Pharmaceuticals Inc.1	1,200		20,208
Sepracor Inc.1	420		20,202
Robert Half International Inc.1	852		20,124
Williams-Sonoma Inc.1	588		20,110
Chico’s FAS Inc.1	432		20,045
Radian Group Inc.	468		19,937
Oxford Health Plans Inc.	408		19,931
Liz Claiborne Inc.	540		19,813
CenturyTel Inc.	720		19,793
Caesars Entertainment Inc.1	1,512		19,716
Janus Capital Group Inc.	1,200		19,656
PETsMART Inc.	720		19,627
Energizer Holdings Inc.1	420		19,610
Dow Jones & Co. Inc.	408		19,547
SCANA Corp.	552		19,513
Cadence Design Systems Inc.1	1,320		19,457
Dun & Bradstreet Corp.1	360		19,260
Sigma-Aldrich Corp.	348		19,258
Hasbro Inc.	876		19,053
Coventry Health Care Inc.1	450		19,048
DST Systems Inc.1	420		19,047
Providian Financial Corp.1	1,452		19,021
Pioneer Natural Resources Co.	588		18,992
Alberto-Culver Co.	432		18,952
Wisconsin Energy Corp.	588		18,904

82 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® S&P 1500 INDEX FUND

March 31, 2004

Security	Shares	Value
Ball Corp.	276	$	18,707
Engelhard Corp.	624		18,651
Brunswick Corp.	456		18,618
Energy East Corp.	732		18,564
Leucadia National Corp.	347		18,488
Citizens Communications Co.1	1,428		18,478
KB Home	228		18,422
TCF Financial Corp.	360		18,385
Hibernia Corp. Class A	780		18,322
Brinker International Inc.1	480		18,206
Outback Steakhouse Inc.	372		18,116
Tellabs Inc.1	2,088		18,019
Equifax Inc.	696		17,971
Pinnacle West Capital Corp.	456		17,944
Toys R Us Inc.1	1,068		17,942
PMI Group Inc. (The)	480		17,933
Mandalay Resort Group	312		17,865
Sabre Holdings Corp.	720		17,863
Autodesk Inc.	564		17,834
Liberty Property Trust	396		17,820
Dollar Tree Stores Inc.1	576		17,793
GTECH Holdings Corp.	300		17,742
LSI Logic Corp.1	1,896		17,709
Citrix Systems Inc.1	816		17,642
Pactiv Corp.1	792		17,622
CenterPoint Energy Inc.	1,536		17,556
DENTSPLY International Inc.	396		17,555
Temple-Inland Inc.	276		17,482
SPX Corp.	384		17,464
CH Robinson Worldwide Inc.	420		17,430
SEI Investment Co.	528		17,424
Pepco Holdings Inc.	852		17,415
Comverse Technology Inc.1	960		17,414
Stanley Works (The)	408		17,413
Diebold Inc.	360		17,323
Vishay Intertechnology Inc.1	804		17,157
Beckman Coulter Inc.	312		17,016
Mercantile Bankshares Corp.	396		17,016
Federated Investors Inc. Class B	540		16,972
Constellation Brands Inc.1	528		16,949
Berkley (W.R.) Corp.	420		16,750
Associated Bancorp	372		16,662
Gentex Corp.	384		16,658
Zebra Technologies Corp. Class A1	240		16,649
International Flavors & Fragrances Inc.	468		16,614
Goodrich (B.F.) Co.	588		16,505
ChoicePoint Inc.1	432		16,429
Eastman Chemical Co.	384		16,389
Toll Brothers Inc.1	360		16,355
Lam Research Corp.1	648		16,336
Michaels Stores Inc.	336		16,336
Harris Corp.	336		16,266
Abercrombie & Fitch Co. Class A	480		16,243
Ashland Inc.	348		16,179
PacifiCare Health Systems Inc.1	408		16,136
Belo (A.H.) Corp.	576		15,990
Navistar International Corp.1	348		15,956
Symbol Technologies Inc.	1,152		15,898
Bausch & Lomb Inc.	264		15,832
Cephalon Inc.1	276		15,818
Fluor Corp.	408		15,786
Manor Care Inc.	444		15,669
Intersil Corp. Class A	696		15,514
Edwards (A.G.) Inc.	396		15,492
Lincare Holdings Inc.1	492		15,459
QLogic Corp.1	468		15,449
Henry Schein Inc.1	216		15,427
Atmel Corp.1	2,364		15,366
Storage Technology Corp.1	552		15,362
Questar Corp.	420		15,305
Humana Inc.1	804		15,292
AMB Property Corp.	408		15,165
ALLETE Inc.	432		15,159
CarMax Inc.1	516		15,067
Astoria Financial Corp.	396		15,060
Arrow Electronics Inc.1	588		14,970
Smithfield Foods Inc.1	552		14,970
Boise Cascade Corp.	432		14,969
Peabody Energy Corp.	321		14,930
International Rectifier Corp.1	324		14,901
Pentair Inc.	252		14,868

SCHEDULES OF INVESTMENTS 83

Schedule of Investments (Continued)

iSHARES^® S&P 1500 INDEX FUND

March 31, 2004

Security	Shares	Value
Pogo Producing Co.	324	$	14,862
Gallagher (Arthur J.) & Co.	456		14,852
Westwood One Inc.1	504		14,843
Monster Worldwide Inc.1	564		14,777
Dana Corp.	744		14,776
PepsiAmericas Inc.	720		14,702
Avnet Inc.1	600		14,694
Ceridian Corp.1	744		14,664
PMC-Sierra Inc.1	864		14,662
Apartment Investment & Management Co. Class A	468		14,550
Hospitality Properties Trust	313		14,523
Network Associates Inc.1	804		14,472
Patterson-UTI Energy Inc.1	408		14,447
Cognizant Technology Solutions Corp.1	319		14,435
Unitrin Inc.	336		14,414
Alliant Energy Corp.	552		14,385
City National Corp.	240		14,376
Compuware Corp.1	1,920		14,304
Corinthian Colleges Inc.1	432		14,282
NVR Inc.1	31		14,260
Pall Corp.	624		14,159
Fairchild Semiconductor International Inc. Class A1	588		14,130
Health Net Inc.1	564		14,061
Apogent Technologies Inc.1	456		13,990
Equitable Resources Inc.	312		13,859
Tektronix Inc.	420		13,738
Precision Castparts Corp.	312		13,737
Bemis Co.	528		13,728
TECO Energy Inc.	936		13,694
Community Health Systems Inc.1	492		13,692
Louisiana-Pacific Corp.	528		13,622
Noble Energy Inc.	288		13,565
Brown & Brown Inc.	348		13,488
Rent-A-Center Inc.1	408		13,460
New Plan Excel Realty Trust	492		13,456
Andrew Corp.1	768		13,440
NSTAR	264		13,390
Investors Financial Services Corp.	324		13,388
Silicon Laboratories Inc.1	252		13,326
Smucker (J.M.) Co. (The)	252		13,301
AmeriCredit Corp.1	780		13,283
Universal Health Services Inc. Class B	288		13,268
Eaton Vance Corp.	348		13,266
MDU Resources Group Inc.	564		13,248
Newfield Exploration Co.1	276		13,229
3Com Corp.1	1,872		13,216
Lyondell Chemical Co.	888		13,178
PerkinElmer Inc.	636		13,159
Protective Life Corp.	348		13,033
Fair Isaac Corp.	360		12,989
Neiman-Marcus Group Inc. Class A	240		12,946
Mack-Cali Realty Corp.	288		12,934
Bank of Hawaii Corp.	276		12,787
JetBlue Airways Corp.1	504		12,746
Meredith Corp.	252		12,741
Cummins Inc.	216		12,625
Ryder System Inc.	324		12,549
Northeast Utilities	672		12,533
Maytag Corp.	396		12,502
Coors (Adolf) Company Class B	180		12,501
NBTY Inc.1	336		12,492
United Dominion Realty Trust Inc.	636		12,478
National Instruments Corp.	396		12,458
Hovnanian Enterprises Inc. Class A1	288		12,427
International Speedway Corp. Class A	264		12,408
Valspar Corp. (The)	252		12,406
Reebok International Ltd.	300		12,405
Millipore Corp.1	240		12,331
Jacobs Engineering Group Inc.1	276		12,310
Cypress Semiconductor Corp.1	600		12,282
Cytyc Corp.1	552		12,282
Wilmington Trust Corp.	324		12,108
First American Corp.	396		12,046
Bowater Inc.	276		12,042
Hubbell Inc. Class B	300		12,039
Saks Inc.1	684		12,038
DPL Inc.	636		11,925
Packaging Corporation of America	528		11,912
ADTRAN Inc.	396		11,892
National-Oilwell Inc.1	420		11,878

84 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® S&P 1500 INDEX FUND

March 31, 2004

Security	Shares	Value
Circuit City Stores Inc.	1,044	$	11,797
Tech Data Corp.1	288		11,791
Fremont General Corp.	384		11,750
CIENA Corp.1	2,364		11,749
Great Plains Energy Inc.	347		11,725
ADC Telecommunications Inc.1	4,032		11,693
CheckFree Corp.1	396		11,666
Sonoco Products Co.	480		11,654
Cooper Cameron Corp.1	264		11,629
Webster Financial Corp.	228		11,562
Colonial BancGroup Inc. (The)	624		11,544
Triad Hospitals Inc.1	372		11,465
Pride International Inc.1	672		11,464
Donaldson Co. Inc.	432		11,461
Education Management Corp.1	360		11,459
OGE Energy Corp.	432		11,422
Applebee’s International Inc.	276		11,413
Entercom Communications Corp.1	252		11,408
Certegy Inc.	324		11,346
Cullen/Frost Bankers Inc.	264		11,289
Independence Community Bank Corp.	276		11,247
BorgWarner Inc.	132		11,198
Hunt (J.B.) Transport Services Inc.1	396		11,155
M.D.C. Holdings Inc.	158		11,151
Protein Design Labs Inc.1	468		11,148
Martin Marietta Materials Inc.	240		11,078
O’Reilly Automotive Inc.1	276		11,051
Cheesecake Factory (The)1	239		11,025
Renal Care Group Inc.1	240		10,982
Barnes & Noble Inc.1	336		10,954
Convergys Corp.1	720		10,944
FirstMerit Corp.	420		10,941
Covance Inc.1	312		10,745
American Financial Group Inc.	360		10,739
Viad Corp.	444		10,731
HON Industries Inc.	288		10,702
Timberland Co. Class A1	180		10,701
Ryland Group Inc.	120		10,660
Medicis Pharmaceutical Corp. Class A	264		10,560
ONEOK Inc.	468		10,553
Activision Inc.1	666		10,536
Pier 1 Imports Inc.	444		10,523
DeVry Inc.1	348		10,492
Rayonier Inc. REIT	240		10,490
HCC Insurance Holdings Inc.	324		10,475
Puget Energy Inc.	468		10,469
Alliant Techsystems Inc.1	192		10,445
Polycom Inc.1	492		10,445
Ruby Tuesday Inc.	324		10,417
Stericycle Inc.1	216		10,338
Timken Co. (The)	444		10,314
Krispy Kreme Doughnuts Inc.1	300		10,302
Lee Enterprises Inc.	228		10,301
Claire’s Stores Inc.	492		10,253
IDEXX Laboratories Inc.1	180		10,237
Cabot Corp.	312		10,234
First Health Group Corp.1	468		10,230
Aqua America Inc.	468		10,146
Harte-Hanks Inc.	432		10,117
Deluxe Corp.	252		10,105
Standard-Pacific Corp.	168		10,080
Sybase Inc.1	480		10,075
Teleflex Inc.	204		10,043
National Fuel Gas Co.	408		10,037
Oshkosh Truck Corp.	180		10,026
Valeant Pharmaceuticals International	420		10,025
IndyMac Bancorp Inc.	276		10,016
Scotts Co. (The) Class A1	156		10,007
Waddell & Reed Financial Inc. Class A	408		10,004
CBRL Group Inc.	252		9,989
Graco Inc.	342		9,956
Hawaiian Electric Industries Inc.	192		9,953
Crane Co.	300		9,900
Rowan Companies Inc.1	468		9,870
BISYS Group Inc. (The)1	588		9,855
Polaris Industries Inc.	216		9,815
Charles River Laboratories International Inc.1	228		9,770
AnnTaylor Stores Corp.1	228		9,758
Washington Federal Inc.	382		9,752
Jefferies Group Inc.	276		9,751
Respironics Inc.1	180		9,724

SCHEDULES OF INVESTMENTS 85

Schedule of Investments (Continued)

iSHARES^® S&P 1500 INDEX FUND

March 31, 2004

Security	Shares	Value
Pacific Sunwear of California Inc.1	396	$	9,718
American Eagle Outfitters Inc.1	360		9,706
Copart Inc.1	444		9,648
Calpine Corp.1	2,064		9,639
Provident Financial Group Inc.	240		9,638
Regis Corp.	216		9,599
INAMED Corp.1	180		9,590
Herman Miller Inc.	360		9,587
Edwards Lifesciences Corp.1	300		9,585
MGI Pharma Inc.1	156		9,557
Pharmaceutical Resources Inc.1	168		9,552
Reynolds & Reynolds Co. (The) Class A	336		9,546
RPM International Inc.	576		9,527
Advanced Fibre Communications Inc.1	432		9,517
Tootsie Roll Industries Inc.	260		9,489
Vectren Corp.	384		9,473
AGL Resources Inc.	324		9,402
StanCorp Financial Group Inc.	144		9,396
Snap-On Inc.	288		9,314
Grant Prideco Inc.1	600		9,300
Extended Stay America Inc.	480		9,298
Harsco Corp.	204		9,282
Urban Outfitters Inc.1	192		9,228
Acxiom Corp.	420		9,223
Accredo Health Inc.1	240		9,144
UCBH Holdings Inc.	228		9,129
Allmerica Financial Corp.1	264		9,121
Borders Group Inc.	384		9,116
Shurgard Storage Centers Inc. Class A	228		9,097
FMC Technologies Inc.1	336		9,082
Florida Rock Industries Inc.	215		9,062
Integrated Circuit Systems Inc.1	360		9,011
Steris Corp.1	348		8,978
Raymond James Financial Inc.	360		8,946
Furniture Brands International Inc.	276		8,887
South Financial Group Inc. (The)	300		8,877
Varco International Inc.1	492		8,861
BJ’s Wholesale Club Inc.1	348		8,857
Carlisle Companies Inc.	156		8,837
Church & Dwight Co. Inc.	204		8,835
Applied Micro Circuits Corp.1	1,536		8,832
Avocent Corp.1	240		8,830
Patina Oil & Gas Corp.	336		8,820
99 Cents Only Stores1	360		8,791
New Century Financial Corp.	180		8,741
Allegheny Energy Inc.1	636		8,720
Roper Industries Inc.	180		8,685
Hudson United Bancorp	228		8,675
Skyworks Solutions Inc.1	744		8,675
Global Payments Inc.	192		8,655
AMETEK Inc.	336		8,615
WPS Resources Corp.	180		8,604
Tom Brown Inc.1	228		8,573
Gateway Inc.1	1,620		8,554
Henry (Jack) & Associates Inc.	444		8,551
Big Lots Inc.1	588		8,526
Whitney Holding Corp.	204		8,515
Semtech Corp.1	372		8,493
Hughes Supply Inc.	162		8,489
First Bancorp	204		8,486
Westamerica Bancorp	168		8,477
CNF Inc.	252		8,467
Hyperion Solutions Corp.1	204		8,456
Tidewater Inc.	300		8,439
Cooper Companies Inc.	156		8,424
Plantronics Inc.1	228		8,347
TECHNE Corp.1	204		8,325
Lubrizol Corp.	264		8,313
Cree Inc.1	372		8,296
Arch Coal Inc.	264		8,287
Worthington Industries Inc.	432		8,281
Titan Corp. (The)1	408		8,238
IMC Global Inc.	576		8,237
Pharmaceutical Product Development Inc.1	276		8,222
Massey Energy Co.	372		8,210
Cerner Corp.1	180		8,134
Zale Corp.1	132		8,125
Yellow Roadway Corp.1	240		8,081
Media General Inc. Class A	120		8,074
Linens `n Things Inc.1	228		8,073
Dillards Inc. Class A	420		8,047

86 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® S&P 1500 INDEX FUND

March 31, 2004

Security	Shares	Value
Peoples Energy Corp.	180	$	8,037
Valassis Communications Inc.1	264		8,026
York International Corp.	204		8,019
Take-Two Interactive Software Inc.1	216		7,944
Airgas Inc.	372		7,924
Integrated Device Technology Inc.1	528		7,920
Essex Property Trust Inc.	120		7,860
Performance Food Group Co.1	228		7,832
RF Micro Devices Inc.1	924		7,817
First Midwest Bancorp Inc.	228		7,784
Western Gas Resources Inc.	153		7,780
AmerUs Group Co.	192		7,747
Thor Industries Inc.	288		7,736
Greater Bay Bancorp	264		7,722
FMC Corp.1	180		7,708
AGCO Corp.1	372		7,704
Flagstar Bancorp Inc.	300		7,695
Pep Boys-Manny, Moe & Jack Inc.	276		7,659
American Greetings Corp. Class A1	336		7,651
Downey Financial Corp.	144		7,618
Brink’s Co. (The)	276		7,612
Nicor Inc.	216		7,610
Fossil Inc.1	228		7,604
ResMed Inc.1	168		7,592
Sylvan Learning Systems Inc.1	216		7,584
Pediatrix Medical Group Inc.1	120		7,560
Varian Semiconductor Equipment Associates Inc.1	180		7,560
Gartner Inc. Class A1	648		7,549
MONY Group Inc. (The)1	240		7,546
Westar Energy Inc.	360		7,546
Apria Healthcare Group Inc.1	252		7,545
Werner Enterprises Inc.	396		7,504
Cooper Tire & Rubber Co.	372		7,496
Goodyear Tire & Rubber Co. (The)1	876		7,481
Dynegy Inc. Class A1	1,884		7,461
Blyth Inc.	228		7,449
Toro Co.	120		7,440
Tractor Supply Co.1	192		7,434
Kennametal Inc.	180		7,429
Ethan Allen Interiors Inc.	180		7,427
Energen Corp.	180		7,425
Evergreen Resources Inc.1	216		7,420
Boyd Gaming Corp.	324		7,416
Idex Corp.	168		7,305
MAF Bancorp Inc.	168		7,301
Callaway Golf Co.	384		7,288
Lancaster Colony Corp.	180		7,272
Duquesne Light Holdings Inc.	372		7,254
WGL Holdings Inc.	240		7,224
Helmerich & Payne Inc.	252		7,220
Swift Transportation Co. Inc.1	420		7,211
Corn Products International Inc.	180		7,200
Avid Technology Inc.1	156		7,196
CMS Energy Corp.1	804		7,196
Cognex Corp.	216		7,182
Staten Island Bancorp Inc.	288		7,165
FactSet Research Systems Inc.	168		7,150
UGI Corp.	216		7,111
Piedmont Natural Gas Co.	168		7,093
United Stationers Inc.1	168		7,073
Invacare Corp.	156		7,042
Perrigo Co.	348		6,977
Cymer Inc.1	180		6,950
Readers Digest Association Inc. (The)	492		6,927
Highwoods Properties Inc.	264		6,919
AptarGroup Inc.	180		6,912
ArvinMeritor Inc.	348		6,901
CEC Entertainment Inc.1	198		6,871
Mentor Corp.	228		6,863
Hilb, Rogal & Hamilton Co.	180		6,858
Cytec Industries Inc.	192		6,829
United Rentals Inc.1	384		6,824
Southern Union Co.1	360		6,822
Imation Corp.	180		6,772
Varian Inc.1	168		6,749
Alexander & Baldwin Inc.	204		6,748
East West Bancorp Inc.	120		6,720
SCP Pool Corp.1	180		6,707
Briggs & Stratton Corp.	99		6,680
Forest Oil Corp.1	264		6,666
P.F. Chang’s China Bistro Inc.1	132		6,641

SCHEDULES OF INVESTMENTS 87

Schedule of Investments (Continued)

iSHARES^® S&P 1500 INDEX FUND

March 31, 2004

Security	Shares	Value
United Bancshares Inc.	216	$	6,588
Sonic Corp.1	192		6,582
Ascential Software Corp.1	300		6,576
Emmis Communications Corp.1	276		6,572
Overseas Shipholding Group Inc.	180		6,570
Delphi Financial Group Inc. Class A	156		6,555
Stone Energy Corp.1	132		6,529
Atmos Energy Corp.	252		6,444
Benchmark Electronics Inc.1	204		6,422
WebEx Communications Inc.1	216		6,422
Flir Systems Inc.1	168		6,404
Dycom Industries Inc.1	240		6,365
Hot Topic Inc.1	240		6,348
Southwest Bancorp of Texas Inc.	168		6,339
Trinity Industries Inc.	228		6,338
Hercules Inc.1	552		6,337
Visteon Corp.	660		6,316
Nordson Corp.	168		6,293
Thomas & Betts Corp.	288		6,284
Arbitron Inc.1	156		6,281
Philadelphia Consolidated Holding Corp.1	108		6,264
Macromedia Inc.1	312		6,262
Diagnostic Products Corp.	144		6,235
LifePoint Hospitals Inc.1	192		6,209
US Oncology Inc.1	420		6,208
Mentor Graphics Corp.1	348		6,201
KEMET Corp.1	432		6,195
CACI International Inc. Class A1	144		6,192
Community First Bankshares Inc.	192		6,171
Minerals Technologies Inc.	108		6,167
PNM Resources Inc.	204		6,130
Banta Corp.	132		6,110
Universal Corp.	120		6,098
Micrel Inc.1	456		6,088
Spinnaker Exploration Co.1	168		6,035
Quiksilver Inc.1	276		6,031
Parametric Technology Corp.1	1,332		6,021
Great Lakes Chemical Corp.	252		6,010
Ohio Casualty Corp.1	300		5,997
Flowers Foods Inc.	228		5,983
Commercial Federal Corp.	216		5,962
Steel Dynamics Inc.1	240		5,947
Chittenden Corp.	180		5,940
Capital Automotive	168		5,932
Tetra Tech Inc.1	276		5,923
Unit Corporation1	216		5,923
Albemarle Corp.	204		5,916
Cimarex Energy Co.1	204		5,896
Landstar System Inc.1	144		5,895
Rollins Inc.	228		5,876
Simpson Manufacturing Co. Inc.1	120		5,874
MPS Group Inc.1	528		5,871
Potlatch Corp.	144		5,868
Engineered Support Systems Inc.	120		5,855
Bob Evans Farms Inc.	180		5,839
CLARCOR Inc.	132		5,828
Flowserve Corp.1	276		5,782
Trimble Navigation Ltd.1	252		5,778
La-Z-Boy Inc.	264		5,745
Heartland Express Inc.	252		5,741
IDACORP Inc.	192		5,741
Waste Connections Inc.1	144		5,731
Mueller Industries Inc.	168		5,710
Dionex Corp.1	108		5,702
RSA Security Inc.1	300		5,637
Panera Bread Co. Class A1	144		5,604
SkyWest Inc.	288		5,541
MacDermid Inc.	156		5,490
AMERIGROUP Corp.1	120		5,484
Reliance Steel & Aluminum Co.	156		5,483
Kroll Inc.1	204		5,477
Axcelis Technologies Inc.1	492		5,471
Silicon Valley Bancshares1	168		5,450
Colonial Properties Trust	132		5,386
Winn-Dixie Stores Inc.	708		5,381
Olin Corp.	300		5,355
Lennox International Inc.	288		5,342
Ferro Corp.	204		5,335
GATX Corp.	240		5,321
Winnebago Industries Inc.	168		5,237
Scholastic Corp.1	192		5,232

88 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® S&P 1500 INDEX FUND

March 31, 2004

Security	Shares	Value
Sybron Dental Specialties Inc.1	192	$	5,232
Susquehanna Bancshares Inc.	204		5,229
Gables Residential Trust	144		5,220
Piper Jaffray Companies Inc.1	96		5,198
Kellwood Co.	132		5,181
Alpharma Inc. Class A	264		5,177
Black Box Corp.	96		5,145
Cabot Oil & Gas Corp.	168		5,134
Tupperware Corp.	288		5,129
Argosy Gaming Co.1	144		5,119
Catalina Marketing Corp.1	264		5,119
FileNET Corp.1	192		5,117
Kilroy Realty Corp.	144		5,112
Men’s Wearhouse Inc. (The)1	192		5,101
Keane Inc.1	324		5,100
Anixter International Inc.	180		5,085
Kronos Inc.1	156		5,075
Cabot Microelectronics Corp.1	120		5,069
Georgia Gulf Corp.	168		5,065
Curtiss-Wright Corp.	108		5,062
TrustCo Bank Corp. NY	372		5,007
CommScope Inc.1	300		4,995
New Jersey Resources Corp.	132		4,990
Cincinnati Bell Inc.1	1,224		4,982
Kelly Services Inc. Class A	168		4,974
Black Hills Corp.	156		4,972
CAL Dive International Inc.1	192		4,959
Allegheny Technologies Inc.	408		4,937
Lattice Semiconductor Corp.1	564		4,924
Wolverine World Wide Inc.	204		4,923
Commonwealth Telephone Enterprises Inc.1	120		4,921
TriQuint Semiconductor Inc.1	672		4,906
Meritage Corp.1	66		4,900
NDCHealth Corp.	180		4,887
Acuity Brands Inc.	204		4,872
Owens & Minor Inc.	192		4,858
Granite Construction Inc.	204		4,849
Delta Air Lines Inc.	612		4,847
URS Corp.1	168		4,835
St. Mary Land & Exploration Co.	144		4,814
Sierra Health Services Inc.1	132		4,805
Maverick Tube Corp.1	204		4,804
Delta & Pine Land Co.	192		4,790
Brookline Bancorp Inc.	300		4,785
Bandag Inc.	96		4,778
Armor Holdings Inc.1	144		4,766
Federal Signal Corp.	240		4,764
Vintage Petroleum Inc.	324		4,750
Adaptec Inc.1	540		4,730
Payless ShoeSource Inc.1	336		4,691
VISX Inc.1	240		4,685
Superior Industries International Inc.	132		4,678
Wintrust Financial Corp.	96		4,668
Rare Hospitality International Inc.1	168		4,662
Fred’s Inc.	192		4,660
Wind River Systems Inc.1	420		4,649
Power-One Inc.1	420		4,645
ADVO Inc.	144		4,640
Select Comfort Corp.1	168		4,635
RLI Corp.	120		4,632
Selective Insurance Group Inc.	132		4,629
United Natural Foods Inc.1	96		4,617
Ruddick Corp.	228		4,615
Knight Transportation Inc.1	192		4,604
Priority Healthcare Corp. Class B1	216		4,599
Commercial Metals Co.	144		4,585
Aquila Inc.1	972		4,578
Brady Corp. Class A	120		4,570
Cleco Corp.	240		4,567
Commercial Net Lease Realty Inc.	231		4,562
Avista Corp.	240		4,541
CSG Systems International Inc.1	264		4,536
Brooks Automation Inc.1	216		4,532
CARBO Ceramics Inc.	72		4,532
ABM Industries Inc.	252		4,523
Aeroflex Inc.1	336		4,523
Albany International Corp. Class A	168		4,518
USF Corp.	132		4,517
Burlington Coat Factory Warehouse Corp.	228		4,514
Cost Plus Inc.1	108		4,509

SCHEDULES OF INVESTMENTS 89

Schedule of Investments (Continued)

iSHARES^® S&P 1500 INDEX FUND

March 31, 2004

Security	Shares	Value
Waypoint Financial Corp.	168	$	4,506
Jack in the Box Inc.1	180		4,495
Macrovision Corp.1	240		4,483
Rogers Corp.1	84		4,483
Harland (John H.) Co.	144		4,481
United Surgical Partners International Inc.1	132		4,480
WMS Industries Inc.1	144		4,464
Guitar Center Inc.1	120		4,457
American Medical Systems Holdings Inc.1	168		4,452
Internet Security Systems Inc.1	252		4,445
Lexington Corp. Properties Trust	204		4,445
Seacoast Financial Services Corp.	132		4,422
K-Swiss Inc. Class A	180		4,405
Insight Enterprises Inc.1	228		4,389
Republic Bancorp Inc.	312		4,387
Ralcorp Holdings Inc.1	144		4,382
Modine Manufacturing Co.	168		4,378
OM Group Inc.1	144		4,378
Hanover Compressor Co.1	360		4,352
Sierra Pacific Resources1	588		4,351
LandAmerica Financial Group Inc.	96		4,345
Southwestern Energy Co.1	180		4,342
Kansas City Southern Industries Inc.1	312		4,337
Manhattan Associates Inc.1	156		4,337
MICROS Systems Inc.1	96		4,334
Progress Software Corp.1	180		4,318
EGL Inc.1	240		4,310
Moog Inc. Class A1	126		4,299
BankUnited Financial Corp. Class A1	144		4,277
Sensient Technologies Corp.	228		4,257
CONMED Corp.1	144		4,254
Watson Wyatt & Co. Holdings1	168		4,240
Power Integrations Inc.1	144		4,224
Casey’s General Store Inc.	252		4,183
Aaron Rents Inc.	168		4,182
InVision Technologies Inc.1	84		4,172
Smith (A.O.) Corp.	144		4,169
Transaction Systems Architects Inc. Class A1	180		4,165
Quanta Services Inc.1	588		4,163
American Management Systems Inc.1	216		4,147
Price Communications Corp.1	264		4,142
UniSource Energy Corp.	168		4,128
Northwest Natural Gas Co.	132		4,125
CH Energy Group Inc.	84		4,124
Aztar Corp.1	168		4,118
ATMI Inc.1	156		4,106
Fuller (H.B.) Co.	144		4,095
Children’s Place Retail Stores Inc. (The)1	132		4,088
Kirby Corp.1	120		4,055
McDATA Corp. Class A1	576		4,055
Christopher & Banks Corp.	192		4,053
Integra LifeSciences Holdings Corp.1	132		4,042
Tecumseh Products Co. Class A	96		4,042
Veeco Instruments Inc.1	144		4,039
Dime Community Bancshares	198		4,029
G&K Services Inc. Class A	108		4,020
Sotheby’s Holdings Inc. Class A1	312		4,009
LTX Corp.1	264		3,986
Wabash National Corp.1	168		3,965
Kaydon Corp.	144		3,964
Seacor Holdings Inc.1	96		3,944
Microsemi Corp.1	288		3,940
Landry’s Restaurants Inc.	132		3,938
eFunds Corp.1	240		3,936
Southwest Gas Corp.	168		3,931
Wilson Greatbatch Technologies Inc.1	108		3,918
Group 1 Automotive Inc.1	108		3,910
SERENA Software Inc.1	192		3,907
Manitowoc Co. Inc. (The)	132		3,905
Shuffle Master Inc.1	84		3,905
Texas Industries Inc.	108		3,904
Irwin Financial Corp.	144		3,885
THQ Inc.1	192		3,884
Oxford Industries Inc.	84		3,880
FirstFed Financial Corp.1	84		3,875
Baldor Electric Co.	168		3,861
Monaco Coach Corp.	144		3,859

90 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® S&P 1500 INDEX FUND

March 31, 2004

Security	Shares	Value
Headwaters Inc.1	150	$	3,843
Plexus Corp.1	216		3,843
Technitrol Inc.1	204		3,835
Watsco Inc.	132		3,828
Woodward Governor Co.	60		3,824
Province Healthcare Co.1	240		3,816
American Healthways Inc.1	156		3,810
Coherent Inc.1	144		3,786
MAXIMUS Inc.1	108		3,780
Russ Berrie & Co. Inc.	108		3,780
Exar Corp.1	204		3,774
Haemonetics Corp.1	120		3,774
CUNO Inc.1	84		3,770
Provident Bankshares Corp.	120		3,766
Zenith National Insurance Corp.	96		3,763
Regeneron Pharmaceuticals Inc.1	276		3,748
IHOP Corp.	108		3,720
Wausau-Mosinee Paper Corp.	264		3,720
Hain Celestial Group Inc.1	168		3,711
Credence Systems Corp.1	312		3,707
DSP Group Inc.1	144		3,705
Hutchinson Technology Inc.1	132		3,704
Imagistics International Inc.1	84		3,700
Ryan’s Family Steak Houses Inc.1	216		3,696
DRS Technologies Inc.1	132		3,693
Sterling Financial Corp. (Washington)1	100		3,689
FEI Co.1	168		3,671
Oceaneering International Inc.1	120		3,654
Watts Industries Inc. Class A	156		3,649
Sola International Inc.1	156		3,627
Vertex Pharmaceuticals Inc.1	384		3,617
Longs Drug Stores Corp.	192		3,615
Central Parking Corp.	180		3,614
Inter-Tel Inc.	120		3,607
Global Imaging Systems Inc.1	108		3,588
Six Flags Inc.1	456		3,580
Quanex Corp.	84		3,569
CIBER Inc.1	324		3,564
Cambrex Corp.	132		3,551
Carpenter Technology Corp.	108		3,551
Forward Air Corp.1	108		3,550
PolyMedica Corp.	132		3,540
Viasys Healthcare Inc.1	156		3,529
Electronics Boutique Holdings Corp.1	120		3,523
Crompton Corp.	552		3,522
Too Inc.1	168		3,520
Advanced Medical Optics Inc.1	144		3,514
Brown Shoe Co. Inc.	96		3,497
Investment Technology Group Inc.1	228		3,488
Veritas DGC Inc.1	168		3,478
UIL Holdings Corp.	72		3,468
Sunrise Senior Living Inc.1	96		3,442
Cubic Corp.	132		3,432
Advanced Energy Industries Inc.1	168		3,425
School Specialty Inc.1	96		3,415
Horace Mann Educators Corp.	216		3,396
Odyssey Healthcare Inc.1	180		3,393
Electro Scientific Industries Inc.1	144		3,390
UICI1	228		3,365
LaBranche & Co. Inc.	300		3,363
Boston Private Financial Holdings Inc.	120		3,360
BARRA Inc.	96		3,359
Harmonic Inc.1	348		3,358
American Italian Pasta Co. Class A	84		3,354
El Paso Electric Co.1	240		3,322
Cash America International Inc.	144		3,319
Stewart Information Services Corp.	84		3,301
Movie Gallery Inc.	168		3,291
Triarc Companies Inc. Class B	300		3,288
Quantum Corp.1	888		3,286
Viasat Inc.1	132		3,284
Analogic Corp.	72		3,275
AmSurg Corp.1	144		3,270
Dendrite International Inc.1	204		3,264
Alaska Air Group Inc.1	132		3,255
Glenborough Realty Trust Inc.	144		3,218
Arkansas Best Corp.	120		3,215
Newport Corp.1	192		3,210

SCHEDULES OF INVESTMENTS 91

Schedule of Investments (Continued)

iSHARES^® S&P 1500 INDEX FUND

March 31, 2004

Security	Shares	Value
Financial Federal Corp.1	96	$	3,209
Helix Technology Corp.	132		3,201
Websense Inc.1	108		3,198
ManTech International Corp. Class A1	156		3,196
Champion Enterprises Inc.1	300		3,180
Checkpoint Systems Inc.1	168		3,175
TBC Corp.1	108		3,172
Lone Star Steakhouse & Saloon Inc.	108		3,153
Advent Software Inc.1	168		3,142
Cleveland-Cliffs Inc.1	48		3,141
Gold Bancorp Inc.	192		3,130
Nuevo Energy Co.1	96		3,126
Shaw Group Inc. (The)1	288		3,122
Griffon Corp.1	144		3,110
CDI Corp.	96		3,099
JLG Industries Inc.	216		3,089
NCO Group Inc.1	132		3,085
Korn/Ferry International1	192		3,072
Spherion Corp.1	300		3,069
Russell Corp.	168		3,068
Anchor BanCorp Wisconsin Inc.	120		3,066
Schulman (A.) Inc.	156		3,065
Arch Chemicals Inc.	108		3,049
Century Aluminum Co.1	108		3,049
Pinnacle Systems Inc.1	336		3,034
PolyOne Corp.1	456		3,032
Jo-Ann Stores Inc.1	108		3,029
Barnes Group Inc.	108		3,012
Actel Corp.1	132		2,987
Kulicke & Soffa Industries Inc.1	252		2,953
WD-40 Co.	84		2,940
Centene Corp.1	96		2,937
Teledyne Technologies Inc.1	156		2,917
Laclede Group Inc. (The)	96		2,909
Umpqua Holdings Corp.	144		2,907
Sterling Bancshares Inc.	216		2,892
Phillips-Van Heusen Corp.	156		2,886
Bowne & Co. Inc.	168		2,873
ANSYS Inc.1	72		2,861
Papa John’s International Inc.1	84		2,843
Paxar Corp.1	192		2,832
Hydril1	108		2,830
Tetra Technologies Inc.1	108		2,822
ESS Technology Inc.1	192		2,815
Stein Mart Inc.1	204		2,815
Merit Medical Systems Inc.1	130		2,813
Longview Fibre Co.	252		2,812
Tredegar Corp.	192		2,809
Ultratech Inc.1	120		2,797
First Republic Bank	72		2,776
Triumph Group Inc.1	84		2,776
Consolidated Graphics Inc.1	72		2,768
Photronics Inc.1	156		2,767
Labor Ready Inc.1	204		2,758
Mercury Computer Systems Inc.1	108		2,754
Arctic Cat Inc.	108		2,753
Photon Dynamics Inc.1	84		2,741
Swift Energy Co.1	144		2,714
j2 Global Communications Inc.1	120		2,707
K2 Inc.1	168		2,693
Esterline Technologies Corp.1	108		2,684
Nautilus Group Inc. (The)	168		2,646
Thomas Industries Inc.	84		2,646
EMCOR Group Inc.1	72		2,642
Verity Inc.1	192		2,625
General Communication Inc. Class A1	288		2,621
StarTek Inc.	72		2,616
Remington Oil & Gas Corp.1	132		2,607
ElkCorp	96		2,601
Cross Country Healthcare Inc.1	156		2,597
Interstate Bakeries Corp.	228		2,592
Universal Forest Products Inc.	84		2,592
Atwood Oceanics Inc.1	72		2,562
Frontier Oil Corp.	132		2,558
Lone Star Technologies Inc.1	144		2,544
Steak n Shake Company (The)1	132		2,541
Datascope Corp.	72		2,530
Dress Barn Inc.1	144		2,526
C-COR.net Corp.1	180		2,524
Belden Inc.	132		2,504
Genesco Inc.1	108		2,503
Vicor Corp.1	204		2,503

92 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® S&P 1500 INDEX FUND

March 31, 2004

Security	Shares	Value
Marcus Corp.	144	$	2,498
ArthroCare Corp.1	108		2,496
Offshore Logistics Inc.1	108		2,489
Riggs National Corp.	144		2,478
Prime Hospitality Corp.1	216		2,458
New England Business Service Inc.	72		2,437
Powerwave Technologies Inc.1	312		2,434
Park Electrochemical Corp.	96		2,429
Glatfelter Co.	216		2,428
Roto-Rooter Inc.	48		2,426
Enzo Biochem Inc.1	144		2,424
Rock-Tenn Co. Class A	168		2,423
Gymboree Corp.1	144		2,415
Regal-Beloit Corp.	120		2,398
Valmont Industries Inc.	120		2,398
Ionics Inc.1	84		2,386
International Multifoods Corp.1	96		2,373
Sequa Corp. Class A1	48		2,371
Possis Medical Inc.1	84		2,363
Lance Inc.	144		2,360
PAREXEL International Corp.1	132		2,359
Fleetwood Enterprises Inc.1	192		2,358
CTS Corp.	180		2,347
GenCorp. Inc.	216		2,339
Schweitzer-Mauduit International Inc.	72		2,326
Methode Electronics Inc.	180		2,322
Noven Pharmaceuticals Inc.1	108		2,319
EDO Corp.	96		2,312
Standard Register Co. (The)	144		2,308
Biosite Inc.1	72		2,302
Administaff Inc.1	132		2,301
Haverty Furniture Companies Inc.	108		2,298
Heidrick & Struggles International Inc.1	96		2,297
Gardner Denver Inc.1	84		2,275
CIMA Labs Inc.1	72		2,263
Standard Microsystems Corp.1	84		2,238
DuPont Photomasks Inc.1	96		2,233
Information Holdings Inc.1	108		2,227
Goody’s Family Clothing Inc.	156		2,226
Intermagnetics General Corp.1	84		2,226
SOURCECORP Inc.1	84		2,226
C&D Technologies Inc.	132		2,206
ICU Medical Inc.1	72		2,187
Plains Resource Inc.1	120		2,182
Applied Industrial Technologies Inc.	96		2,181
Cato Corp. Class A	108		2,169
J&J Snack Foods Corp.1	48		2,169
Audiovox Corp. Class A1	108		2,160
Presidential Life Corp.	144		2,157
Deltic Timber Corp.	60		2,129
Daktronics Inc.1	94		2,122
ShopKo Stores Inc.1	144		2,105
Stewart & Stevenson Services Inc.	144		2,105
Zix Corp.1	144		2,100
JDA Software Group Inc.1	144		2,095
Retek Inc.1	276		2,087
Prima Energy Corp.1	60		2,073
Insituform Technologies Inc. Class A1	132		2,063
Pre-Paid Legal Services Inc.1	84		2,056
Stride Rite Corp.	192		2,037
Duane Reade Inc.1	120		2,033
Vital Sign Inc.	60		2,024
Hooper Holmes Inc.	324		2,022
Cohu Inc.	108		2,014
Kopin Corp.1	348		2,011
Midway Games Inc.1	276		2,009
RadiSys Corp.1	96		2,006
Interface Inc. Class A1	252		2,003
Agilysys Inc.	168		1,999
Orthodontic Centers of America Inc.1	252		1,991
Jakks Pacific Inc.1	132		1,980
O’Charley’s Inc.1	108		1,971
Jill (J.) Group Inc. (The)1	96		1,970
Bel Fuse Inc. Class B	60		1,964
Nelson (Thomas) Inc.	72		1,960
Input/Output Inc.1	252		1,953

SCHEDULES OF INVESTMENTS 93

Schedule of Investments (Continued)

iSHARES^® S&P 1500 INDEX FUND

March 31, 2004

Security	Shares	Value
Hologic Inc.1	96	$	1,944
Symmetricom Inc.1	216		1,938
Cable Design Technologies Corp.1	204		1,934
AAR Corp.1	156		1,916
W-H Energy Services Inc.1	132		1,910
Frontier Airlines Inc.1	180		1,876
Libbey Inc.	72		1,867
Buckeye Technologies Inc.1	180		1,865
Skyline Corp.	48		1,851
Artesyn Technologies Inc.1	192		1,828
Pinnacle Entertainment Inc.1	132		1,822
Immucor Inc.1	100		1,812
Itron Inc.1	96		1,787
Sturm Ruger & Co. Inc.	132		1,783
Myers Industries Inc.	144		1,771
Volt Information Sciences Inc.1	72		1,760
American States Water Co.	72		1,757
Chesapeake Corp.	72		1,719
Coinstar Inc.1	108		1,714
RTI International Metals Inc.1	108		1,710
Brush Engineered Materials Inc.1	84		1,703
Caraustar Industries Inc.1	144		1,678
MemberWorks Inc.1	48		1,676
SurModics Inc.1	84		1,672
RehabCare Group Inc.1	84		1,670
Atlantic Coast Airlines Holdings Inc.1	228		1,658
Apogee Enterprises Inc.	132		1,628
Intrado Inc.1	84		1,625
Standex International Corp.	60		1,620
DIMON Inc.	228		1,619
Bei Technologies Inc.	72		1,617
Kaman Corp. Class A	108		1,612
4Kids Entertainment Inc.1	72		1,611
X-Rite Inc.	108		1,608
TALX Corp.	72		1,580
Rudolph Technologies Inc.1	84		1,573
Ryerson Tull Inc.	120		1,571
Lawson Products Inc.	48		1,565
Robbins & Myers Inc.	72		1,552
Astec Industries Inc.1	96		1,547
SPSS Inc.1	84		1,537
Hancock Fabrics Inc.	96		1,525
Pericom Semiconductor Corp.1	132		1,515
Standard Motor Products Inc.	96		1,505
SWS Group Inc.	84		1,504
Keithley Instruments Inc.	72		1,491
Great Atlantic & Pacific Tea Co.1	192		1,486
Action Performance Companies Inc.	96		1,466
Lindsay Manufacturing Co.	60		1,445
Netegrity Inc.1	168		1,428
Nash Finch Co.	60		1,421
NUI Corp.	84		1,420
OshKosh B’Gosh Inc. Class A	60		1,404
Pegasus Solutions Inc.1	120		1,402
Midas Inc.1	72		1,400
National Presto Industries Inc.	36		1,395
MRO Software Inc.1	120		1,394
Tower Automotive Inc.1	276		1,391
Dril-Quip Inc.1	84		1,381
EPIQ Systems Inc.1	84		1,376
PRG-Schultz International Inc.1	312		1,373
Alliance Semiconductor Corp.1	180		1,370
Central Vermont Public Service Corp.	60		1,350
Applica Inc.1	120		1,349
Cascade Natural Gas Corp.	60		1,307
Wellman Inc.	156		1,303
Mesa Air Group Inc.1	156		1,289
Building Materials Holdings Corp.	72		1,264
Mobile Mini Inc.1	72		1,246
Pope & Talbot Inc.	72		1,238
Quaker Chemical Corp.	48		1,219
Concord Communications Inc.1	84		1,210
Coachmen Industries Inc.	72		1,201
Rewards Network Inc.1	120		1,200
Network Equipment Technologies Inc.1	120		1,198
Bassett Furniture Industries Inc.	60		1,190
Brooktrout Inc.1	60		1,190
Wet Seal Inc. Class A1	144		1,188
Tollgrade Communications Inc.1	72		1,149

94 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® S&P 1500 INDEX FUND

March 31, 2004

Security	Shares	Value
Boston Communications Group Inc.1	96	$	1,138
Savient Pharmaceuticals Inc.1	300		1,134
SBS Technologies Inc.1	72		1,113
Angelica Corp.	48		1,096
Magnetek Inc.1	144		1,089
MapInfo Corp.1	84		1,072
OMNOVA Solutions Inc.1	204		1,071
Catapult Communications Corp.1	60		1,070
Nature’s Sunshine Products Inc.	72		1,068
Planar Systems Inc.1	72		1,025
Supertex Inc.1	60		1,001
PC-Tel Inc.1	96		992
Bally Total Fitness Holding Corp.1	168		984
Advanced Marketing Services Inc.	96		950
Bell Microproducts Inc.1	132		950
Carreker Corp.1	120		950
Digi International Inc.1	96		948
Steel Technologies Inc.	48		927
Concord Camera Corp.1	144		904
Fedders Corp.	156		891
Department 56 Inc.1	60		887
Insurance Auto Auctions Inc.1	60		872
Radiant Systems Inc.1	144		866
Captaris Inc.1	156		858
Lydall Inc.1	84		857
ArQule Inc.1	144		855
Enesco Group Inc.1	72		828
Butler Manufacturing Co.	36		808
NYFIX Inc.1	156		805
Curative Health Services Inc.1	60		804
Penford Corp.	48		800
Material Sciences Corp.	72		792
Theragenics Corp.1	144		775
Castle (A.M.) & Co.1	84		759
On Assignment Inc.1	132		738
Gerber Scientific Inc.1	108		734
Haggar Corp.	36		720
Three-Five Systems Inc.1	108		707
CPI Corp.	36		685
IMCO Recycling Inc.1	72		678
Phoenix Technologies Ltd.1	120		647
Roxio Inc.1	144		644
Ashworth Inc.1	72		626
ITT Educational Services Inc.1	20		624
Green Mountain Power Corp.	24		621
Commonwealth Industries Inc.	84		614
Intermet Corp.	132		594
Milacron Inc.	168		583
CryoLife Inc.1	96		571
Salton Inc.1	60		562
Cross (A.T.) Co. Class A1	84		548
Osteotech Inc.1	84		542
Wolverine Tube Inc.1	60		503
SCM Microsystems Inc.1	72		483
Ultimate Electronics Inc.1	72		470
QRS Corp.1	72		406
SCPIE Holdings Inc.	48		394
Meade Instruments Corp.1	96		388
Huffy Corp.1	84		328
Tenet Healthcare Corp.1	20		223
Solectron Corp.1	20		111
TOTAL COMMON STOCKS (Cost: $59,938,346)			59,456,370
SHORT-TERM INVESTMENTS – 6.64%
MONEY MARKET FUNDS – 2.67%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares2,3	1,142,906		1,142,906
Barclays Global Investors Funds Prime Money Market Fund, Institutional Shares2,3	350,168		350,168
BlackRock Temp Cash Money Market Fund2	16,391		16,391
Short-Term Investment Co. – Liquid Assets Money Market Portfolio2	81,623		81,623
			1,591,088

SCHEDULES OF INVESTMENTS 95

Schedule of Investments (Continued)

iSHARES^® S&P 1500 INDEX FUND

March 31, 2004

Security	Principal		Value
FLOATING RATE NOTES – 1.30%
Beta Finance Inc.
1.05%, 05/20/042,4	$	15,917	$	15,916
1.05%, 09/15/042,4		31,833		31,832
1.06%, 10/12/042,4		15,917		15,916
1.14%, 08/23/042,4		15,917		15,922
CC USA Inc.
1.05%, 04/19/042,4		14,007		14,007
1.06%, 05/24/042,4		31,833		31,833
1.09%, 07/15/042,4		15,917		15,918
1.51%, 02/15/052,4		20,692		20,721
Dorada Finance Inc.
1.04%, 07/01/042		11,142		11,113
1.05%, 05/20/042,4		31,833		31,833
1.24%, 08/09/042		7,958		7,958
1.48%, 01/18/052,4		23,875		23,874
Five Finance Inc.
1.06%, 04/15/042,4		15,917		15,917
HBOS Treasury Services PLC
1.10%, 04/22/052		31,833		31,833
Holmes Financing PLC
1.05%, 04/15/042		3,183		3,183
K2 USA LLC
1.05%, 08/16/042,4		7,958		7,958
1.05%, 09/27/042,4		34,380		34,378
1.06%, 04/13/042		15,917		15,917
1.06%, 05/17/042		15,917		15,917
1.46%, 01/12/052,4		15,917		15,915
Links Finance LLC
1.05%, 06/28/042		15,917		15,916
1.06%, 05/04/042		15,917		15,917
1.06%, 07/20/042		12,733		12,733
Nationwide Building Society
1.09%, 07/23/042,4		23,875		23,875
1.11%, 12/28/042,4		31,833		31,833
Northern Rock PLC
1.11%, 01/13/052,4		30,242		30,242
Permanent Financing PLC
1.04%, 03/10/052		31,833		31,833
1.05%, 12/10/042		15,917		15,917
Sigma Finance Inc.
1.05%, 07/01/042		15,917		15,916
1.06%, 07/20/042		15,917		15,916
1.09%, 10/07/042		31,833		31,830
1.24%, 08/06/042		7,958		7,958
Tango Finance Corp.
1.05%, 01/18/052,4		14,007		14,006
1.06%, 07/15/042,4		9,550		9,549
1.07%, 02/25/052,4		17,827		17,823
1.10%, 07/06/042,4		9,550		9,550
WhistleJacket Capital LLC
1.05%, 09/15/042,4		15,917		15,915
1.32%, 02/04/052,4		7,958		7,957
White Pine Finance LLC
1.04%, 08/26/042,4		15,917		15,916
1.05%, 11/15/042,4		19,100		19,100
1.06%, 04/20/042,4		15,917		15,917
1.06%, 07/06/042,4		19,100		19,100
				772,580
COMMERCIAL PAPER – 1.20%
Alpine Securitization Corp.
1.03%, 04/14/042		14,962		14,956
1.03%, 04/20/042		15,917		15,908
1.03%, 04/23/042		18,782		18,770
1.03%, 04/26/042		15,917		15,905
Amsterdam Funding Corp.
1.03%, 05/05/042		12,893		12,880
Barton Capital Corp.
1.03%, 04/02/042		16,588		16,588
Blue Ridge Asset Funding Corp.
1.02%, 04/23/042		9,550		9,544
1.03%, 05/21/042		15,917		15,894
Corporate Asset Funding
1.05%, 05/21/042		16,553		16,529
Corporate Receivables Corp.
1.03%, 04/07/042		15,917		15,914
1.04%, 06/03/042		31,833		31,775
Delaware Funding Corp.
1.03%, 04/02/042		15,917		15,916
1.03%, 05/05/042		23,901		23,878
1.03%, 05/21/042		7,958		7,947

96 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® S&P 1500 INDEX FUND

March 31, 2004

Security	Principal		Value
Edison Asset Securitization
1.07%, 09/21/042	$	15,917	$	15,835
Eureka Securitization Inc.
1.03%, 05/25/042		6,367		6,357
1.04%, 04/14/042		19,100		19,093
Falcon Asset Securitization
1.03%, 04/15/042		19,130		19,122
1.03%, 04/22/042		18,782		18,770
1.03%, 04/30/042		15,917		15,904
Galaxy Funding Inc.
1.05%, 05/17/042		15,917		15,895
Gemini Securitization Corp.
1.03%, 04/20/042		9,556		9,551
1.03%, 04/23/042		18,396		18,384
1.03%, 04/30/042		11,155		11,146
1.03%, 05/24/042		7,958		7,946
1.04%, 04/19/042		7,958		7,954
GIRO Funding US Corp.
1.05%, 05/19/042		7,958		7,947
Jupiter Securitization Corp.
1.03%, 04/16/042		31,833		31,820
1.03%, 04/19/042		42,975		42,953
1.03%, 04/28/042		19,100		19,085
1.03%, 04/30/042		27,114		27,092
Liberty Street Funding Corp.
1.04%, 04/08/042		11,153		11,151
1.05%, 04/05/042		12,893		12,891
Polonius Inc.
1.04%, 05/21/042		18,416		18,389
Preferred Receivables Funding Corp.
1.03%, 04/19/042		33,425		33,409
1.04%, 04/23/042		36,608		36,585
1.04%, 05/20/042		7,958		7,947
Receivables Capital Corp.
1.04%, 04/14/042		14,007		14,001
Scaldis Capital LLC
1.05%, 06/30/042		11,396		11,366
Thames Asset Global Securitization No. 1 Inc.
1.03%, 04/19/042		15,917		15,909
Thunder Bay Funding Inc.
1.03%, 04/19/042		10,125		10,120
1.04%, 04/29/042		14,338		14,326
				713,352
TIME DEPOSITS – 1.02%
Abbey National Treasury Services PLC
1.08%, 04/01/042		111,417		111,417
1.33%, 02/10/052		15,917		15,915
1.39%, 02/02/052		15,917		15,915
1.40%, 10/25/042		31,833		31,831
Bank of New York
1.39%, 11/01/042		31,833		31,832
Bank of Nova Scotia
1.24%, 10/07/042		23,875		23,874
1.42%, 10/29/042		23,875		23,876
Canadian Imperial Bank of Commerce
1.24%, 10/07/042		23,875		23,874
1.38%, 11/22/042		7,958		7,959
1.40%, 10/29/042		31,833		31,833
National City Bank (Cleveland, Ohio)
1.02%, 04/01/042		47,750		47,750
Toronto-Dominion Bank
1.04%, 06/22/042		7,958		7,958
1.22%, 03/23/052		55,708		55,699
1.34%, 02/10/052		12,733		12,732
1.41%, 11/01/042		23,875		23,874
UBS Finance (Delaware)
1.06%, 04/01/042		63,667		63,667
1.10%, 09/08/042		31,833		31,678
1.11%, 12/17/042		47,750		47,367
				609,051
REPURCHASE AGREEMENTS – 0.32%
Bank of America, NA
1.06%, 04/01/042		63,667		63,667
Goldman, Sachs & Co.
1.08%, 04/01/042		127,334		127,334
				191,001

SCHEDULES OF INVESTMENTS 97

Schedule of Investments (Continued)

iSHARES^® S&P 1500 INDEX FUND

March 31, 2004

Security	Principal		Value
U.S. GOVERNMENT AGENCY NOTES – 0.13%
Federal Home Loan Mortgage Corporation
1.15%, 05/12/042	$	23,875	$	23,844
1.28%, 08/19/042		12,733		12,670
Federal National Mortgage Association
1.28%, 08/20/042		41,383		41,170
				77,684
TOTAL SHORT-TERM INVESTMENTS (Cost: $3,954,756)				3,954,756
TOTAL INVESTMENTS IN SECURITIES – 106.54% (Cost: $63,893,102)				63,411,126
Other Assets, Less Liabilities – (6.54%)				(3,895,017	)
NET ASSETS – 100.00%			$	59,516,109

¹ Non-income earning securities.

² All or a portion of this security represents investments of securities lending collateral.

³ Issuer is an affiliate of the Fund’s investment advisor. See Note 2.

⁴ Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

See notes to financial statements.

98 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities

iSHARES^® TRUST

March 31, 2004

	iShares S&P
	500 Index Fund			500/BARRA Growth Index Fund			500/BARRA Value Index Fund			Midcap 400 Index Fund			Midcap 400/BARRA Growth Index Fund
ASSETS
Investments, at cost:
Unaffiliated issuers	$	8,902,016,921		$	1,442,607,436		$	1,863,994,651		$	1,615,497,525		$	650,162,576
Affiliates of the investment advisor	$	208,812,140		$	41,108,823		$	49,369,809		$	124,210,462		$	51,833,368
Investments in securities, at value (including securities on loana) (Note 1):
Unaffiliated issuers	$	8,814,601,796		$	1,538,531,651		$	1,975,745,236		$	1,855,533,709		$	759,372,132
Affiliates of the investment advisor		208,812,140			41,108,823			49,369,809			124,210,462			51,833,368
Receivables:
Investment securities sold		1,640,540			263,810			387,678			—			—
Dividends and interest		10,383,313			2,201,424			1,783,474			1,000,596			242,709
Capital shares redeemed		—			—			—			1,714			—
Total Assets		9,035,437,789			1,582,105,708			2,027,286,197			1,980,746,481			811,448,209
LIABILITIES
Payables:
Investment securities purchased		2,362,575			957,797			1,026,223			4,234,249			3,652,993
Collateral for securities on loan (Note 5)		510,545,834			107,275,618			119,435,630			336,658,660			136,930,175
Capital shares redeemed		91,236			—			—			—			—
Distribution to shareholders		29,453,820			3,525,020			7,432,758			3,320,563			770,402
Advisory fees (Note 2)		1,305,166			426,035			545,097			512,655			272,887
Total Liabilities		543,758,631			112,184,470			128,439,708			344,726,127			141,626,457
NET ASSETS	$	8,491,679,158		$	1,469,921,238		$	1,898,846,489		$	1,636,020,354		$	669,821,752
Net assets consist of:
Paid-in capital	$	8,876,116,228		$	1,451,209,113		$	1,865,743,926		$	1,441,169,762		$	634,393,121
Undistributed net investment income		1,735,374			361,650			308,095			276,993			56,902
Accumulated net realized loss		(298,757,319	)		(77,573,740	)		(78,956,117	)		(45,462,585	)		(73,837,827	)
Net unrealized appreciation (depreciation)		(87,415,125	)		95,924,215			111,750,585			240,036,184			109,209,556
NET ASSETS	$	8,491,679,158		$	1,469,921,238		$	1,898,846,489		$	1,636,020,354		$	669,821,752
Shares outstanding		75,200,000			26,500,000			33,300,000			13,550,000			5,400,000
Net asset value per share	$	112.92		$	55.47		$	57.02		$	120.74		$	124.04

^a Securities on loan with market values of $494,195,466, $104,012,979, $115,710,472, $325,882,221 and $132,796,997, respectively. See Note 5.

See notes to financial statements.

FINANCIAL STATEMENTS 99

Statements of Assets and Liabilities (Continued)

iSHARES^® TRUST

March 31, 2004

	iShares S&P
	Midcap 400/BARRA Value Index Fund			SmallCap 600 Index Fund			SmallCap 600/BARRA Growth Index Fund			SmallCap 600/BARRA Value Index Fund			1500 Index Fund
ASSETS
Investments, at cost:
Unaffiliated issuers	$	1,120,425,030		$	2,331,593,393		$	663,780,756		$	1,044,134,558		$	62,400,028
Affiliates of the investment advisor	$	82,302,656		$	177,595,782		$	55,252,952		$	81,652,355		$	1,493,074
Investments in securities, at value (including securities on loana) (Note 1):
Unaffiliated issuers	$	1,283,009,338		$	2,555,940,771		$	791,764,774		$	1,170,770,772		$	61,918,052
Affiliates of the investment advisor		82,302,656			177,595,782			55,252,952			81,652,355			1,493,074
Receivables:
Investment securities sold		5,749,435			23,577,287			9,551,519			10,962,241			80,940
Dividends and interest		999,076			1,386,881			373,889			727,919			68,926
Capital shares redeemed		9,530			—			—			—			—
Total Assets		1,372,070,035			2,758,500,721			856,943,134			1,264,113,287			63,560,992
LIABILITIES
Payables:
Investment securities purchased		5,827,380			23,976,770			9,606,252			11,073,456			112,694
Collateral for securities on loan (Note 5)		228,767,885			503,872,361			158,497,059			229,831,366			3,750,443
Capital shares redeemed		—			17,560			—			—			—
Distribution to shareholders		3,110,951			3,400,795			426,650			2,181,335			162,126
Advisory fees (Note 2)		457,200			697,845			276,191			392,715			19,620
Total Liabilities		238,163,416			531,965,331			168,806,152			243,478,872			4,044,883
NET ASSETS	$	1,133,906,619		$	2,226,535,390		$	688,136,982		$	1,020,634,415		$	59,516,109
Net assets consist of:
Paid-in capital	$	1,007,858,978		$	2,058,125,528		$	602,166,027		$	938,681,774		$	60,020,488
Undistributed net investment income		391,616			452,464			52,595			417,072			14,464
Accumulated net realized loss		(36,928,283	)		(56,389,980	)		(42,065,658	)		(45,100,645	)		(36,867	)
Net unrealized appreciation (depreciation)		162,584,308			224,347,378			127,984,018			126,636,214			(481,976	)
NET ASSETS	$	1,133,906,619		$	2,226,535,390		$	688,136,982		$	1,020,634,415		$	59,516,109
Shares outstanding		9,800,000			15,650,000			7,350,000			9,550,000			600,000
Net asset value per share	$	115.70		$	142.27		$	93.62		$	106.87		$	99.19

^a Securities on loan with market values of $221,100,759, $487,373,899, $153,366,039, $222,092,891 and $3,637,444, respectively. See Note 5.

See notes to financial statements.

100 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations

iSHARES^® TRUST

Year Ended March 31, 2004

	iShares S&P
	500 Index Fund			500/BARRA Growth Index Fund			500/BARRA Value Index Fund			Midcap 400 Index Fund			Midcap 400/BARRA Growth Index Fund
NET INVESTMENT INCOME
Dividends	$	119,290,804		$	15,307,952		$	25,846,878		$	15,535,309		$	3,368,944
Interesta		47,287			7,251			9,555			6,686			2,241
Securities lending incomea		365,491			56,839			74,986			246,944			102,235
Total investment income		119,703,582			15,372,042			25,931,419			15,788,939			3,473,420
EXPENSES (Note 2)
Advisory fees		6,461,077			1,970,255			2,230,484			2,583,387			1,236,192
Total expenses		6,461,077			1,970,255			2,230,484			2,583,387			1,236,192
Net investment income		113,242,505			13,401,787			23,700,935			13,205,552			2,237,228
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments		(89,856,173	)		(10,995,925	)		(19,150,800	)		(12,868,084	)		(12,496,984	)
In-kind redemptions		219,400,387			4,501,846			42,211,083			112,264,933			4,802,285
Net realized gain (loss)		129,544,214			(6,494,079	)		23,060,283			99,396,849			(7,694,699	)
Net change in unrealized appreciation (depreciation) on investments		1,610,973,108			214,569,392			332,367,597			385,380,742			156,031,978
Net realized and unrealized gain		1,740,517,322			208,075,313			355,427,880			484,777,591			148,337,279
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	1,853,759,827		$	221,477,100		$	379,128,815		$	497,983,143		$	150,574,507

^a Includes income earned from affiliates of the Funds’ investment advisor. See Note 2.

See notes to financial statements.

FINANCIAL STATEMENTS 101

Statements of Operations (Continued)

iSHARES^® TRUST

Year Ended March 31, 2004

	iShares S&P
	Midcap 400/BARRA Value Index Fund			SmallCap 600 Index Fund			SmallCap 600/BARRA Growth Index Fund			SmallCap 600/BARRA Value Index Fund			1500 Index Fundb
NET INVESTMENT INCOME
Dividendsa	$	14,051,832		$	15,201,707		$	3,001,884		$	8,535,999		$	199,287
Interestc		5,243			6,347			2,037			3,828			44
Securities lending incomec		149,068			570,406			221,049			200,037			491
Total investment income		14,206,143			15,778,460			3,224,970			8,739,864			199,822
EXPENSES (Note 2)
Advisory fees		2,060,880			3,409,196			1,258,284			1,813,291			23,232
Total expenses		2,060,880			3,409,196			1,258,284			1,813,291			23,232
Net investment income		12,145,263			12,369,264			1,966,686			6,926,573			176,590
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments		(9,455,466	)		(11,728,362	)		(2,551,735	)		(7,609,172	)		(36,867	)
In-kind redemptions		57,058,118			155,189,659			18,608,647			46,240,411			—
Net realized gain (loss)		47,602,652			143,461,297			16,056,912			38,631,239			(36,867	)
Net change in unrealized appreciation (depreciation) on investments		275,043,850			531,526,283			163,368,783			273,238,816			(481,976	)
Net realized and unrealized gain (loss)		322,646,502			674,987,580			179,425,695			311,870,055			(518,843	)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	334,791,765		$	687,356,844		$	181,392,381		$	318,796,628		$	(342,253	)

a Net of foreign withholding tax of $-, $7,676, $4,782, $- and $2, respectively.

b For the period January 20, 2004 (commencement of operations) through March 31, 2004.

c Includes income earned from affiliates of the Funds’ investment advisor. See Note 2.

See notes to financial statements.

102 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets

iSHARES^® TRUST

	iShares S&P 500 Index Fund						iShares S&P 500/BARRA Growth Index Fund						iShares S&P 500/BARRA Value Index Fund
	For the year ended March 31, 2004			For the year ended March 31, 2003			For the year ended March 31, 2004			For the year ended March 31, 2003			For the year ended March 31, 2004			For the year ended March 31, 2003
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	113,242,505		$	67,878,629		$	13,401,787		$	6,464,963		$	23,700,935		$	12,961,375
Net realized gain (loss)		129,544,214			(95,968,100	)		(6,494,079	)		(48,991,696	)		23,060,283			(33,810,700	)
Net change in unrealized appreciation (depreciation)		1,610,973,108			(1,135,337,649	)		214,569,392			(99,683,967	)		332,367,597			(184,623,296	)
Net increase (decrease) in net assets resulting from operations		1,853,759,827			(1,163,427,120	)		221,477,100			(142,210,700	)		379,128,815			(205,472,621	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(114,236,145	)		(66,399,553	)		(13,455,529	)		(6,226,352	)		(23,739,453	)		(12,637,254	)
Total distributions to shareholders		(114,236,145	)		(66,399,553	)		(13,455,529	)		(6,226,352	)		(23,739,453	)		(12,637,254	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		3,200,614,124			3,434,257,041			577,526,712			511,069,171			956,447,190			435,565,285
Cost of shares redeemed		(1,129,781,843	)		(1,732,053,170	)		(21,208,248	)		(121,706,589	)		(83,028,673	)		(133,467,384	)
Net increase in net assets from capital share transactions		2,070,832,281			1,702,203,871			556,318,464			389,362,582			873,418,517			302,097,901
INCREASE IN NET ASSETS		3,810,355,963			472,377,198			764,340,035			240,925,530			1,228,807,879			83,988,026
NET ASSETS:
Beginning of year		4,681,323,195			4,208,945,997			705,581,203			464,655,673			670,038,610			586,050,584
End of year	$	8,491,679,158		$	4,681,323,195		$	1,469,921,238		$	705,581,203		$	1,898,846,489		$	670,038,610
Undistributed net investment income included in net assets at end of year	$	1,735,374		$	3,339,768		$	361,650		$	416,122		$	308,095		$	550,851
SHARES ISSUED AND REDEEMED:
Shares sold		31,050,000			37,700,000			11,000,000			10,750,000			18,200,000			9,000,000
Shares redeemed		(10,900,000	)		(19,250,000	)		(400,000	)		(2,750,000	)		(1,500,000	)		(2,900,000	)
Net increase in shares outstanding		20,150,000			18,450,000			10,600,000			8,000,000			16,700,000			6,100,000

See notes to financial statements.

FINANCIAL STATEMENTS 103

Statements of Changes in Net Assets (Continued)

iSHARES^® TRUST

	iShares S&P Midcap 400 Index Fund						iShares S&P Midcap 400/BARRA Growth Index Fund						iShares S&P Midcap 400/BARRA Value Index Fund
	For the year ended March 31, 2004			For the year ended March 31, 2003			For the year ended March 31, 2004			For the year ended March 31, 2003			For the year ended March 31, 2004			For the year ended March 31, 2003
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	13,205,552		$	7,757,992		$	2,237,228		$	995,131		$	12,145,263		$	8,481,134
Net realized gain (loss)		99,396,849			(24,473,839	)		(7,694,699	)		(35,915,123	)		47,602,652			(7,511,398	)
Net change in unrealized appreciation (depreciation)		385,380,742			(180,427,971	)		156,031,978			(61,617,995	)		275,043,850			(152,862,965	)
Net increase (decrease) in net assets resulting from operations		497,983,143			(197,143,818	)		150,574,507			(96,537,987	)		334,791,765			(151,893,229	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(13,211,338	)		(7,413,297	)		(2,217,254	)		(977,567	)		(11,924,665	)		(8,270,124	)
Total distributions to shareholders		(13,211,338	)		(7,413,297	)		(2,217,254	)		(977,567	)		(11,924,665	)		(8,270,124	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		507,547,511			786,121,958			217,891,145			303,430,190			329,803,313			287,277,766
Cost of shares redeemed		(511,548,964	)		(31,885,415	)		(5,942,872	)		(148,757,596	)		(65,546,541	)		(35,014,705	)
Net increase (decrease) in net assets from capital share transactions		(4,001,453	)		754,236,543			211,948,273			154,672,594			264,256,772			252,263,061
INCREASE IN NET ASSETS		480,770,352			549,679,428			360,305,526			57,157,040			587,123,872			92,099,708
NET ASSETS:
Beginning of year		1,155,250,002			605,570,574			309,516,226			252,359,186			546,782,747			454,683,039
End of year	$	1,636,020,354		$	1,155,250,002		$	669,821,752		$	309,516,226		$	1,133,906,619		$	546,782,747
Undistributed net investment income included in net assets at end of year	$	276,993		$	410,681		$	56,902		$	36,928		$	391,616		$	226,889
SHARES ISSUED AND REDEEMED:
Shares sold		4,700,000			8,850,000			1,950,000			2,900,000			3,150,000			3,150,000
Shares redeemed		(5,250,000	)		(350,000	)		(50,000	)		(1,550,000	)		(650,000	)		(450,000	)
Net increase (decrease) in shares outstanding		(550,000	)		8,500,000			1,900,000			1,350,000			2,500,000			2,700,000

See notes to financial statements.

104 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^® TRUST

	iShares S&P SmallCap 600 Index Fund						iShares S&P SmallCap 600/BARRA Growth Index Fund						iShares S&P SmallCAP 600/BARRA Value Index Fund
	For the year ended March 31, 2004			For the year ended March 31, 2003			For the year ended March 31, 2004			For the year ended March 31, 2003			For the year ended March 31, 2004			For the year ended March 31, 2003
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	12,369,264		$	8,003,825		$	1,966,686		$	1,026,693		$	6,926,573		$	5,565,636
Net realized gain (loss)		143,461,297			20,584,008			16,056,912			(6,942,192	)		38,631,239			(11,868,323	)
Net change in unrealized appreciation (depreciation)		531,526,283			(384,623,872	)		163,368,783			(48,776,742	)		273,238,816			(186,992,108	)
Net increase (decrease) in net assets resulting from operations		687,356,844			(356,036,039	)		181,392,381			(54,692,241	)		318,796,628			(193,294,795	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(12,521,833	)		(7,704,600	)		(1,998,876	)		(920,639	)		(7,010,435	)		(5,389,255	)
Total distributions to shareholders		(12,521,833	)		(7,704,600	)		(1,998,876	)		(920,639	)		(7,010,435	)		(5,389,255	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		954,769,647			846,248,846			216,843,389			394,436,900			248,986,618			499,925,865
Cost of shares redeemed		(425,365,225	)		(585,024,165	)		(20,872,305	)		(217,527,125	)		(23,086,473	)		(275,904,030	)
Net increase in net assets from capital share transactions		529,404,422			261,224,681			195,971,084			176,909,775			225,900,145			224,021,835
INCREASE (DECREASE) IN NET ASSETS		1,204,239,433			(102,515,958	)		375,364,589			121,296,895			537,686,338			25,337,785
NET ASSETS:
Beginning of year		1,022,295,957			1,124,811,915			312,772,393			191,475,498			482,948,077			457,610,292
End of year	$	2,226,535,390		$	1,022,295,957		$	688,136,982		$	312,772,393		$	1,020,634,415		$	482,948,077
Undistributed net investment income included in net assets at end of year	$	452,464		$	582,784		$	52,595		$	106,054		$	417,072		$	345,891
SHARES ISSUED AND REDEEMED:
Shares sold		7,700,000			7,700,000			2,600,000			5,900,000			2,550,000			6,150,000
Shares redeemed		(3,200,000	)		(5,700,000	)		(250,000	)		(3,300,000	)		(250,000	)		(3,750,000	)
Net increase in shares outstanding		4,500,000			2,000,000			2,350,000			2,600,000			2,300,000			2,400,000

See notes to financial statements.

FINANCIAL STATEMENTS 105

Statements of Changes in Net Assets (Continued)

iSHARES^® TRUST

	iShares S&P 1500 Index Fund
	For the period January 20, 20041 to March 31, 2004
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	176,590
Net realized loss		(36,867	)
Net change in unrealized appreciation (depreciation)		(481,976	)
Net decrease in net assets resulting from operations		(342,253	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(162,126	)
Total distributions to shareholders		(162,126	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		60,020,488
Net increase in net assets from capital share transactions		60,020,488
INCREASE IN NET ASSETS		59,516,109
NET ASSETS:
Beginning of period		—
End of period	$	59,516,109
Undistributed net investment income included in net assets at end of period	$	14,464
SHARES ISSUED AND REDEEMED:
Shares sold		600,000
Net increase in shares outstanding		600,000

¹ Commencement of operations

See notes to financial statements.

106 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares S&P 500 Index Fund
	Year ended Mar. 31, 2004			Year ended Mar. 31, 2003			Year ended Mar. 31, 2002			Period from May 15, 20001 to Mar. 31, 2001
Net asset value, beginning of period	$	85.04		$	115.00		$	116.24		$	145.24
Income from investment operations:
Net investment income		1.66			1.53			1.39			1.06
Net realized and unrealized gain (loss)		27.91			(29.97	)		(1.25	)		(28.98	)
Total from investment operations		29.57			(28.44	)		0.14			(27.92	)
Less distributions from:
Net investment income		(1.69	)		(1.52	)		(1.38	)		(1.01	)
Net realized gain		—			—			—			(0.07	)
Total distributions		(1.69	)		(1.52	)		(1.38	)		(1.08	)
Net asset value, end of period	$	112.92		$	85.04		$	115.00		$	116.24
Total return		34.93	%		(24.80	)%		0.13	%		(19.32	)%2
Ratios/supplemental data:
Net assets, end of period (000s)	$	8,491,679		$	4,681,323		$	4,208,946		$	2,876,839
Ratio of expenses to average net assets3		0.09	%		0.09	%		0.09	%		0.09	%
Ratio of net investment income to average net assets3		1.66	%		1.67	%		1.27	%		1.06	%
Portfolio turnover rate4		3	%		5	%		3	%		5	%

¹ Commencement of operations

² Not annualized

³ Annualized for periods of less than one year.

⁴ Excludes portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 107

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares S&P 500/BARRA Growth Index Fund
	Year ended Mar. 31, 2004			Year ended Mar. 31, 2003			Year ended Mar. 31, 2002			Period from May 22, 20001 to Mar. 31, 2001
Net asset value, beginning of period	$	44.38		$	58.82		$	56.61		$	82.15
Income from investment operations:
Net investment income		0.61			0.51			0.43			0.25
Net realized and unrealized gain (loss)		11.10			(14.44	)		2.19			(25.44	)
Total from investment operations		11.71			(13.93	)		2.62			(25.19	)
Less distributions from:
Net investment income		(0.62	)		(0.51	)		(0.41	)		(0.24	)
Net realized gain		—			—			—			(0.11	)
Total distributions		(0.62	)		(0.51	)		(0.41	)		(0.35	)
Net asset value, end of period	$	55.47		$	44.38		$	58.82		$	56.61
Total return		26.46	%		(23.72	)%		4.64	%		(30.75	)%2
Ratios/Supplemental data:
Net assets, end of period (000s)	$	1,469,921		$	705,581		$	464,656		$	141,520
Ratio of expenses to average net assets3		0.18	%		0.18	%		0.18	%		0.18	%
Ratio of net investment income to average net assets3		1.22	%		1.19	%		0.82	%		0.45	%
Portfolio turnover rate4		14	%		17	%		28	%		31	%

¹ Commencement of operations.

² Not annualized

³ Annualized for periods of less than one year

⁴ Excludes portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.

108 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares S&P 500/BARRA Value Index Fund
	Year ended Mar. 31, 2004			Year ended Mar. 31, 2003			Year ended Mar. 31, 2002			Period from May 22, 20001 to Mar. 31, 2001
Net asset value, beginning of period	$	40.36		$	55.81		$	59.31		$	60.20
Income from investment operations:
Net investment income		0.91			0.85			0.83			0.65
Net realized and unrealized gain (loss)		16.68			(15.46	)		(3.49	)		(0.78	)
Total from investment operations		17.59			(14.61	)		(2.66	)		(0.13	)
Less distributions from:
Net investment income		(0.93	)		(0.84	)		(0.84	)		(0.61	)
Net realized gain		—			—			—			(0.15	)
Total distributions		(0.93	)		(0.84	)		(0.84	)		(0.76	)
Net asset value, end of period	$	57.02		$	40.36		$	55.81		$	59.31
Total return		43.80	%		(26.29	)%		(4.48	)%		(0.27	)%2
Ratios/Supplemental data:
Net assets, end of period (000s)	$	1,898,846		$	670,039		$	586,051		$	367,704
Ratio of expenses to average net assets3		0.18	%		0.18	%		0.18	%		0.18	%
Ratio of net investment income to average net assets3		1.91	%		2.01	%		1.56	%		1.51	%
Portfolio turnover rate4		5	%		22	%		17	%		9	%

¹ Commencement of operations.

² Not annualized.

³ Annualized for periods of less than one year.

⁴ Excludes portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 109

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares S&P MidCap 400 Index Fund
	Year ended Mar. 31, 2004			Year ended Mar. 31, 2003			Year ended Mar. 31, 2002			Period from May 22, 20001 to Mar. 31, 2001
Net asset value, beginning of period	$	81.93		$	108.14		$	91.77		$	92.63
Income from investment operations:
Net investment income		1.05			0.76			0.75			0.72
Net realized and unrealized gain (loss)		38.81			(26.22	)		16.37			(0.59	)
Total from investment operations		39.86			(25.46	)		17.12			0.13
Less distributions from:
Net investment income		(1.05	)		(0.75	)		(0.75	)		(0.69	)
Net realized gain		—			—			—			(0.30	)
Total distributions		(1.05	)		(0.75	)		(0.75	)		(0.99	)
Net asset value, end of period	$	120.74		$	81.93		$	108.14		$	91.77
Total return		48.81	%		(23.59	)%		18.75	%		0.04	%2
Ratios/Supplemental data:
Net assets, end of period (000s)	$	1,636,020		$	1,155,250		$	605,571		$	156,005
Ratio of expenses to average net assets3		0.20	%		0.20	%		0.20	%		0.20	%
Ratio of net investment income to average net assets3		1.02	%		0.98	%		0.87	%		0.86	%
Portfolio turnover rate4		11	%		12	%		14	%		32	%

¹ Commencement of operations.

² Not annualized.

³ Annualized for periods of less than one year.

⁴ Excludes portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.

110 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares S&P MidCap 400/BARRA Growth Index Fund
	Year ended Mar. 31, 2004			Year ended Mar. 31, 2003			Year ended Mar. 31, 2002			Period from Jul. 24, 20001 to Mar. 31, 2001
Net asset value, beginning of period	$	88.43		$	117.38		$	101.31		$	135.73
Income from investment operations:
Net investment income		0.48			0.27			0.14			0.01
Net realized and unrealized gain (loss)		35.61			(28.95	)		16.07			(33.95	)
Total from investment operations		36.09			(28.68	)		16.21			(33.94	)
Less distributions from:
Net investment income		(0.48	)		(0.27	)		(0.14	)		(0.01	)
Net realized gain		—			—			—			(0.47	)
Total distributions		(0.48	)		(0.27	)		(0.14	)		(0.48	)
Net asset value, end of period	$	124.04		$	88.43		$	117.38		$	101.31
Total return		40.86	%		(24.45	)%		16.03	%		(25.08	)%2
Ratios/Supplemental data:
Net assets, end of period (000s)	$	669,822		$	309,516		$	252,359		$	162,092
Ratio of expenses to average net assets3		0.25	%		0.25	%		0.25	%		0.25	%
Ratio of net investment income to average net assets3		0.45	%		0.31	%		0.15	%		0.06	%
Portfolio turnover rate4		37	%		58	%		50	%		67	%

¹ Commencement of operations.

² Not annualized.

³ Annualized for periods of less than one year.

⁴ Excludes portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 111

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares S&P MidCap 400/BARRA Value Index Fund
	Year ended Mar. 31, 2004			Year ended Mar. 31, 2003			Year ended Mar. 31, 2002			Period from Jul. 24, 20001 to Mar. 31, 2001
Net asset value, beginning of period	$	74.90		$	98.84		$	82.15		$	72.40
Income from investment operations:
Net investment income		1.40			1.18			1.06			0.78
Net realized and unrealized gain (loss)		40.79			(23.96	)		16.69			9.86
Total from investment operations		42.19			(22.78	)		17.75			10.64
Less distributions from:
Net investment income		(1.39	)		(1.16	)		(1.06	)		(0.75	)
Net realized gain		—			—			—			(0.14	)
Total distributions		(1.39	)		(1.16	)		(1.06	)		(0.89	)
Net asset value, end of period	$	115.70		$	74.90		$	98.84		$	82.15
Total return		56.59	%		(23.13	)%		21.79	%		14.71	%2
Ratios/Supplemental data:
Net assets, end of period (000s)	$	1,133,907		$	546,783		$	454,683		$	78,044
Ratio of expenses to average net assets3		0.25	%		0.25	%		0.25	%		0.25	%
Ratio of net investment income to average net assets3		1.47	%		1.50	%		1.43	%		1.58	%
Portfolio turnover rate4		11	%		11	%		13	%		17	%

¹ Commencement of operations.

² Not annualized.

³ Annualized for periods of less than one year.

⁴ Excludes portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.

112 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares S&P SmallCap 600 Index Fund
	Year ended Mar. 31, 2004			Year ended Mar. 31, 2003			Year ended Mar. 31, 2002			Period from May 22, 20001 to Mar. 31, 2001
Net asset value, beginning of period	$	91.69		$	122.93		$	101.50		$	97.95
Income from investment operations:
Net investment income		0.86			0.69			0.57			0.38
Net realized and unrealized gain (loss)		50.60			(31.26	)		21.43			4.63
Total from investment operations		51.46			(30.57	)		22.00			5.01
Less distributions from:
Net investment income		(0.88	)		(0.67	)		(0.57	)		(0.34	)
Net realized gain		—			—			—			(1.12	)
Total distributions		(0.88	)		(0.67	)		(0.57	)		(1.46	)
Net asset value, end of period	$	142.27		$	91.69		$	122.93		$	101.50
Total return		56.27	%		(24.91	)%		21.74	%		5.08	%2
Ratios/Supplemental data:
Net assets, end of period (000s)	$	2,226,535		$	1,022,296		$	1,124,812		$	208,081
Ratio of expenses to average net assets3		0.20	%		0.20	%		0.20	%		0.20	%
Ratio of net investment income to average net assets3		0.73	%		0.70	%		0.60	%		0.61	%
Portfolio turnover rate4		11	%		17	%		16	%		28	%

¹ Commencement of operations.

² Not annualized.

³ Annualized for periods of less than one year.

⁴ Excludes portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 113

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares S&P SmallCap 600/BARRA Growth Index Fund
	Year ended Mar. 31, 2004			Year ended Mar. 31, 2003			Year ended Mar. 31, 2002			Period from Jul. 24, 20001 to Mar. 31, 2001
Net asset value, beginning of period	$	62.55		$	79.78		$	67.91		$	83.34
Income from investment operations:
Net investment income		0.31			0.19			0.09			0.005
Net realized and unrealized gain (loss)		31.08			(17.25	)		11.87			(14.81	)
Total from investment operations		31.39			(17.06	)		11.96			(14.81	)
Less distributions from:
Net investment income		(0.32	)		(0.17	)		(0.09	)		(0.00	)5
Net realized gain		—			—			—			(0.62	)
Total distributions		(0.32	)		(0.17	)		(0.09	)		(0.62	)
Net asset value, end of period	$	93.62		$	62.55		$	79.78		$	67.91
Total return		50.24	%		(21.39	)%		17.60	%		(17.86	)%2
Ratios/Supplemental data:
Net assets, end of period (000s)	$	688,137		$	312,772		$	191,475		$	27,162
Ratio of expenses to average net assets3		0.25	%		0.25	%		0.25	%		0.25	%
Ratio of net investment income to average net assets3		0.39	%		0.34	%		0.14	%		0.00	%6
Portfolio turnover rate4		37	%		57	%		49	%		77	%

¹ Commencement of operations.

² Not annualized.

³ Annualized for periods of less than one year.

⁴ Excludes portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

⁵ Rounds to less than $0.01.

⁶ Rounds to less than 0.01%.

See notes to financial statements.

114 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares S&P SmallCap 600/BARRA Value Index Fund
	Year ended Mar. 31, 2004			Year ended Mar. 31, 2003			Year ended Mar. 31, 2002			Period from Jul. 24, 20001 to Mar. 31, 2001
Net asset value, beginning of period	$	66.61		$	94.35		$	75.87		$	68.34
Income from investment operations:
Net investment income		0.83			0.71			0.60			0.43
Net realized and unrealized gain (loss)		40.28			(27.75	)		18.48			7.82
Total from investment operations		41.11			(27.04	)		19.08			8.25
Less distributions from:
Net investment income		(0.85	)		(0.70	)		(0.60	)		(0.38	)
Net realized gain		—			—			—			(0.34	)
Total distributions		(0.85	)		(0.70	)		(0.60	)		(0.72	)
Net asset value, end of period	$	106.87		$	66.61		$	94.35		$	75.87
Total return		61.91	%		(28.75	)%		25.29	%		12.13	%2
Ratios/Supplemental data:
Net assets, end of period (000s)	$	1,020,634		$	482,948		$	457,610		$	64,490
Ratio of expenses to average net assets3		0.25	%		0.25	%		0.25	%		0.25	%
Ratio of net investment income to average net assets3		0.95	%		0.99	%		0.92	%		0.98	%
Portfolio turnover rate4		12	%		14	%		14	%		17	%

¹ Commencement of operations.

² Not annualized.

³ Annualized for periods of less than one year.

⁴ Excludes portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 115

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares S&P 1500 Index Fund
	Period from Jan. 20, 20041 to Mar. 31, 2004
Net asset value, beginning of period	$	100.03
Income from investment operations:
Net investment income		0.29
Net realized and unrealized loss		(0.86	)
Total from investment operations		(0.57	)
Less distributions from:
Net investment income		(0.27	)
Total distributions		(0.27	)
Net asset value, end of period	$	99.19
Total return		(0.57	)%2
Ratios/Supplemental data:
Net assets, end of period (000s)	$	59,516
Ratio of expenses to average net assets3		0.20	%
Ratio of net investment income to average net assets3		1.52	%
Portfolio turnover rate4		1	%

¹ Commencement of operations.

² Not annualized.

³ Annualized for periods of less than one year.

⁴ Excludes portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.

116 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to the Financial Statements

iSHARES^® TRUST

1. SIGNIFICANT ACCOUNTING POLICIES

iShares Trust (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 statutory trust pursuant to an Agreement and Declaration of Trust dated December 16, 1999. As of March 31, 2004, the Trust offered 61 investment portfolios or funds.

These financial statements relate only to the iShares S&P 500, iShares S&P 500/BARRA Growth, iShares S&P 500/BARRA Value, iShares S&P MidCap 400, iShares S&P MidCap 400/BARRA Growth, iShares S&P MidCap 400/BARRA Value, iShares S&P SmallCap 600, iShares S&P SmallCap 600/BARRA Growth, iShares S&P SmallCap 600/BARRA Value and iShares S&P 1500 Index Funds (each a “Fund”, collectively the “Funds”).

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 achieve each Fund’s investment objective. Each of the Funds is classified as a diversified fund under the 1940 Act, except for the iShares S&P 500/BARRA Growth Index Fund, which is classified as a non-diversified fund. Non-diversified funds generally hold stocks of fewer companies 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 affecting these companies.

Under the Trust’s organizational documents, the Funds’ officers and trustees are indemnified against certain liabilities that may arise out of the performance of their duties to the Funds. Additionally, in the normal course of business, the Funds enter into contracts with service providers that contain general indemnification clauses. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred.

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 for which the primary market is the National Association of Securities Dealers Automated Quotations National Market System (“NASDAQ”) are valued at the NASDAQ Official Closing Price. Securities not listed on an exchange or national securities market, or securities for which there were no sales prices, are valued at the latest quoted bid prices. U.S. Government obligations are valued at the latest quoted bid price. Short-term investments are valued at amortized cost, which approximates market value. Mutual fund shares are valued at net asset value. Any securities, including restricted securities or other assets for which market quotations are not readily available, or for which a significant event has occurred since the time of the most recent market quotation, are valued in accordance with fair value pricing 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.

NOTES TO THE FINANCIAL STATEMENTS 117

Notes to the Financial Statements (Continued)

iSHARES^® TRUST

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.

At March 31, 2004, the tax year-end of the Funds, the components of distributable earnings (accumulated losses) on a tax basis were as follows:

iShares Index Fund	Undistributed Ordinary Income		Unrealized Appreciation (Depreciation)			Capital and Other Losses			Total Distributable Earnings (Accumulated Losses)
S&P 500	$	1,552,603	$	(232,635,891	)	$	(153,353,782	)	$	(384,437,070	)
S&P 500/BARRA Growth		336,391		75,881,726			(57,505,992	)		18,712,125
S&P 500/BARRA Value		263,472		82,587,521			(49,748,430	)		33,102,563
S&P MidCap 400		98,663		216,169,782			(21,417,853	)		194,850,592
S&P MidCap 400/BARRA Growth		56,902		98,100,756			(62,729,027	)		35,428,631
S&P MidCap 400/BARRA Value		93,065		152,912,051			(26,957,475	)		126,047,641
S&P SmallCap 600		—		200,038,235			(31,628,373	)		168,409,862
S&P SmallCap 600/BARRA Growth		52,595		120,031,724			(34,113,364	)		85,970,955
S&P SmallCap 600/BARRA Value		—		114,130,756			(32,178,115	)		81,952,641
S&P 1500		14,464		(487,577	)		(31,266	)		(504,379	)

The differences between the components of distributable earnings (accumulated losses) on a tax basis and the amounts reflected in the Statements of Assets and Liabilities are primarily due to differing treatments of wash sales and dividends from real estate investment trusts.

For the years ended March 31, 2004 and March 31, 2003, the tax characterization of distributions paid for each Fund was equal to the book characterization of distributions paid. The total distributions and distributions per share are disclosed in the accompanying Statements of Changes in Net Assets and the Financial Highlights for all the Funds.

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 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 year ended March 31,2004.

118 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to the Financial Statements (Continued)

iSHARES^® TRUST

From November 1, 2003 to March 31, 2004, certain Funds incurred net realized capital losses. As permitted by tax regulations, the Funds have elected to defer those losses and treat them as arising in the year ending March 31, 2005.

iShares Index Fund	Deferred Net Realized Capital Losses
S&P 500	$	39,118,432
S&P 500/BARRA Growth		1,173,134
S&P MidCap 400		633,448
S&P MidCap 400/BARRA Growth		1,243,548
S&P MidCap 400/BARRA Value		60,483
S&P 1500		31,266

The Funds had tax basis net capital loss carryforwards at March 31, 2004, the tax year-end of the Funds, as follows:

iShares Index Fund	Expiring 2010		Expiring 2011		Expiring 2012		Total
S&P 500	$	5,086,485	$	109,148,380	$	—	$	114,234,865
S&P 500/BARRA Growth		9,841,895		24,099,560		22,391,403		56,332,858
S&P 500/BARRA Value		5,134,741		23,315,922		21,297,767		49,748,430
S&P MidCap 400		4,458,220		4,020,152		12,306,033		20,784,405
S&P MidCap 400/BARRA Growth		11,111,322		22,971,325		27,402,832		61,485,479
S&P MidCap 400/BARRA Value		1,442,036		4,082,966		21,371,990		26,896,992
S&P SmallCap 600		3,199,196		22,944,237		5,484,940		31,628,373
S&P SmallCap 600/BARRA Growth		4,230,989		8,134,573		21,747,802		34,113,364
S&P SmallCap 600/BARRA Value		4,241,868		12,218,694		15,717,553		32,178,115

Net capital loss carryforwards may be applied against any net realized taxable gains in each succeeding year, or until their respective expiration date, whichever occurs first.

For the year ended March 31, 2004, certain Funds realized net capital gains or losses resulting from in-kind redemptions of large blocks of 50,000 or more shares or multiples thereof (“Creation Units”). Because such gains or losses are not taxable to the Funds, and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gains or losses to paid-in-capital at the end of the Funds’ tax year. These reclassifications have no effect on net assets or net asset values per share. The in-kind gains or losses for the year ended March 31, 2004 are disclosed in the Funds’ Statements of Operations.

NOTES TO THE FINANCIAL STATEMENTS 119

Notes to the Financial Statements (Continued)

iSHARES^® TRUST

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 an investment by the Fund, collateralized by securities, which are delivered to the Funds’ custodian or to an agent bank under a tri-party agreement. 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 Funds did not enter into any repurchase agreements at March 31, 2004; however, cash collateral for securities on loan was invested in repurchase agreements at March 31, 2004. For further information, see Note 5, below.

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 the Investment Advisory 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 execution 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 advisory services to each Fund, BGFA is entitled to an annual advisory fee based on the average daily net assets of each Fund as follows:

iShares Index Fund	Advisory Fee
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 1500	0.20

Investors Bank & Trust Company (“Investors Bank”) serves as administrator, custodian and transfer agent for the Trust. As compensation for its services, Investors Bank 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.

120 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to the Financial Statements (Continued)

iSHARES^® TRUST

Barclays Global Investors, N.A. (“BGI”) serves as securities lending agent for the Trust. BGI is an affiliate of BGFA, the Funds’ investment advisor. As securities lending agent, BGI receives as fees, a share of the income earned on investment of the cash collateral received for the loan of securities. For the year ended March 31, 2004, BGI earned securities lending agent fees as follows:

iShares Index Fund	Securities Lending Agent Fees
S&P 500	$	367,991
S&P 500/BARRA Growth		57,278
S&P 500/BARRA Value		75,581
S&P MidCap 400		248,363
S&P MidCap 400/BARRA Growth		102,677
S&P MidCap 400/BARRA Value		150,433
S&P SmallCap 600		572,571
S&P SmallCap 600/BARRA Growth		221,525
S&P SmallCap 600/BARRA Value		201,209
S&P 1500		509

SEI Investments Distribution Company (“SEI”) serves as each Fund’s underwriter and distributor of the shares of each Fund, pursuant to a Distribution Agreement with the Trust. SEI does not receive a fee from the Funds for its distribution services.

Barclays Global Investors Services (“BGIS”), a subsidiary of BGI, may serve as a broker-dealer for the Funds. For the year ended March 31, 2004, BGIS did not receive any brokerage commissions from the Funds.

As defined under the Section 2(a)(3) of the 1940 Act, certain broker-dealers may be deemed to be an “affiliated person” of a Fund by virtue of being a DTC Participant that owned of record 5% or more of the outstanding shares of such Fund. The broker-dealers identified to be an “affiliated person” of a Fund (other than BGIS) did not execute any investment transactions with such Fund during the year ended March 31, 2004.

Pursuant to Rule 17a-7 of the 1940 Act, certain Funds executed cross trades for the year ended March 31, 2004. Cross trading is the buying or selling of portfolio securities between funds to which BGFA (or an affiliate) serves as investment advisor. The Board reviewed all such transactions executed during the first three quarters of the fiscal year and concluded that they were in compliance with the requirements and restrictions set forth by Rule 17a-7. The Board is scheduled at its next meeting to review all such transactions executed during the fourth quarter of the fiscal year.

Pursuant to an exemptive order issued by the U.S. Securities and Exchange Commission, each Fund may invest in the Institutional Shares of the Institutional Money Market Fund (“IMMF”) and Prime Money Market Fund (“PMMF”) of Barclays Global Investors Funds. The IMMF and PMMF are feeder funds in a master/feeder fund structure that invest substantially all of their assets in the Money Market Master Portfolio and Prime Money Market Master Portfolio (collectively, the “Master Portfolios”), respectively, which are managed by BGFA, the Funds’ investment advisor. The IMMF and PMMF are open-end money market funds available only to institutional investors, including other investment companies managed by BGFA. The IMMF and PMMF seek a high level of income consistent with liquidity and the preservation of capital. While the IMMF and PMMF do not directly charge an advisory fee, the Master Portfolios in which they invest do charge an advisory fee. Income distributions from the IMMF and PMMF are declared daily and paid monthly from net investment income. Income distributions earned by the Funds from temporary cash investments or from investment of securities lending collateral are recorded as either interest income or securities lending income, respectively, in the accompanying Statements of Operations.

NOTES TO THE FINANCIAL STATEMENTS 121

Notes to the Financial Statements (Continued)

iSHARES^® TRUST

Transactions in shares of issuers affiliated with BGFA for the year ended March 31, 2004, including interest income were as follows:

Name of Issuer	Number of Shares Held Beginning of Year (in 000s)	Gross Additions (in 000s)	Gross Reductions (in 000s)	Number Of Shares Held End of Year (in 000s)	Value at End of Year		Interest Income
iShares S&P 500 Index Fund
IMMF	1,992	1,124,618	1,093,236	33,374	$	33,373,800	$	47,287
iShares S&P 500/BARRA Growth Index Fund
IMMF	135	167,826	163,715	4,246		4,245,812		7,251
iShares S&P 500/BARRA Value Index Fund
IMMF	427	225,373	217,472	8,328		8,328,266		9,555
iShares S&P MidCap 400 Index Fund
IMMF	45	157,242	148,762	8,525		8,524,793		6,686
iShares S&P MidCap 400/BARRA Growth Index Fund
IMMF	78	52,567	47,865	4,780		4,780,192		2,241
iShares S&P MidCap 400/BARRA Value Index Fund
IMMF	24	124,488	120,821	3,691		3,691,382		5,243
iShares S&P SmallCap 600 Index Fund
IMMF	80	144,177	139,806	4,451		4,450,642		6,347
iShares S&P SmallCap 600/BARRA Growth Index Fund
IMMF	188	47,603	47,002	789		788,769		2,037
iShares S&P SmallCap 600/BARRA Value Index Fund
IMMF	—	87,392	84,716	2,676		2,675,640		3,828
iShares S&P 1500 Index Fund
IMMF	—	872	668	204		204,314		44

Due to the nature of the structure of the joint account used for the investment of the collateral for securities lending, the transactions reported for the IMMF do not include activity related to the Funds’ holdings of this issuer for securities lending purposes. In addition to the transactions disclosed above, the Funds also invested in the PMMF for purposes of investing collateral from securities lending.

As of March 31, 2004, certain trustees and officers of the Trust are also officers of BGI.

122 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to the Financial Statements (Continued)

iSHARES^® TRUST

3. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the year ended March 31, 2004 were as follows:

iShares Index Fund	Purchases		Sales
S&P 500	$	185,322,959	$	190,937,505
S&P 500/BARRA Growth		150,836,422		151,308,273
S&P 500/BARRA Value		61,368,839		63,318,925
S&P MidCap 400		139,652,289		141,193,543
S&P MidCap 400/BARRA Growth		184,015,341		184,264,083
S&P MidCap 400/BARRA Value		93,460,281		95,191,622
S&P SmallCap 600		199,785,938		184,264,395
S&P SmallCap 600/BARRA Growth		187,141,367		187,548,235
S&P SmallCap 600/BARRA Value		86,551,814		89,276,853
S&P 1500		433,941		467,216

In-kind transactions (see Note 4) for the year ended March 31, 2004 were as follows:

iShares Index Fund	In-kind Purchases		In-kind Sales
S&P 500	$	3,196,142,303	$	1,127,956,101
S&P 500/BARRA Growth		576,875,508		21,191,090
S&P 500/BARRA Value		1,071,718,508		197,268,632
S&P MidCap 400		515,356,665		519,040,841
S&P MidCap 400/BARRA Growth		220,480,013		8,561,935
S&P MidCap 400/BARRA Value		485,547,291		220,176,450
S&P SmallCap 600		1,013,517,388		500,205,833
S&P SmallCap 600/BARRA Growth		261,844,106		65,778,854
S&P SmallCap 600/BARRA Value		417,509,962		189,417,276
S&P 1500		60,008,488		—

NOTES TO THE FINANCIAL STATEMENTS 123

Notes to the Financial Statements (Continued)

iSHARES^® TRUST

At March 31, 2004, the aggregate unrealized appreciation and depreciation based on cost for federal income tax purposes were as follows:

iShares Index Fund	Tax Cost		Unrealized Appreciation		Unrealized Depreciation			Net Unrealized Appreciation (Depreciation)
S&P 500	$	9,256,049,827	$	540,823,986	$	(773,459,877	)	$	(232,635,891	)
S&P 500/BARRA Growth		1,503,758,748		120,575,954		(44,694,228	)		75,881,726
S&P 500/BARRA Value		1,942,527,524		151,801,695		(69,214,174	)		82,587,521
S&P MidCap 400		1,763,574,389		261,021,080		(44,851,298	)		216,169,782
S&P MidCap 400/BARRA Growth		713,104,744		112,335,140		(14,234,384	)		98,100,756
S&P MidCap 400/BARRA Value		1,212,399,943		173,736,421		(20,824,370	)		152,912,051
S&P SmallCap 600		2,533,498,318		304,632,975		(104,594,740	)		200,038,235
S&P SmallCap 600/BARRA Growth		726,986,002		129,947,407		(9,915,683	)		120,031,724
S&P SmallCap 600/BARRA Value		1,138,292,371		146,977,658		(32,846,902	)		114,130,756
S&P 1500		63,898,703		2,029,135		(2,516,712	)		(487,577	)

4. CAPITAL SHARE TRANSACTIONS

At March 31, 2004, there were an unlimited number of no par value capital shares of beneficial interest authorized. Capital shares are issued and redeemed by each Fund only in Creation Units or multiples thereof. Except when aggregated in Creation Units, shares of each Fund are not redeemable. Transactions in capital shares for each Fund are disclosed in detail in the Statements of Changes in Net Assets.

The consideration for the 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.

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, which consists of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. Government. The initial collateral received is required to have a value of at least 102% of the market value of the loaned securities for securities denominated in U.S. dollars and a value of at least 105% for all other securities. The collateral is maintained thereafter, at a value equal to at least 100% of the current market value of the securities on loan. The risks to a Fund of securities lending are that the borrower may not provide additional collateral when required, or return the securities when due.

As of March 31, 2004, the Funds had loaned securities which were collateralized by cash. The cash collateral received was invested in a joint account with other funds managed by BGFA, which invests in securities with remaining maturities of 397 days or less, repurchase agreements and money market mutual funds including money market funds managed by BGFA. Repurchase agreements held in the joint account are fully collateralized by U.S. Government securities. Income from the joint account is allocated daily to each Fund, based on each Fund’s portion of the total cash collateral received. The market value of the securities on loan at March 31, 2004 and the value of the related collateral are disclosed in the Statements of Assets and Liabilities. Securities lending income is presented net of broker rebates and fees paid to BGI.

124 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Trustees of

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 (the “Funds”), as listed on the table of contents, at March 31, 2004, the results of each of their operations for the period then ended, and the changes in each of their net assets and the financial highlights for each of the periods presented, 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 the standards of the Public Company Accounting Oversight Board (United States), 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, 2004 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California

May 21, 2004

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM 125

Tax Information (Unaudited)

iSHARES^® TRUST

For corporate shareholders, a portion of the income dividends paid by the Funds during the year ended March 31, 2004 qualified for the dividends-received deduction:

iShares Index Fund	Dividends- Received Deduction
S&P 500	99.95	%
S&P 500/BARRA Growth	100.00
S&P 500/BARRA Value	100.00
S&P MidCap 400	100.00
S&P MidCap 400/BARRA Growth	100.00
S&P MidCap 400/BARRA Value	100.00
S&P SmallCap 600	100.00
S&P SmallCap 600/BARRA Growth	100.00
S&P SmallCap 600/BARRA Value	100.00
S&P 1500	100.00

Qualified dividend income received by the Funds through March 31, 2004 that qualified for a reduced tax rate pursuant to the Jobs and Growth Tax Relief Reconciliation Act of 2003 are as follows:

iShares Index Fund	Qualified Dividend Income
S&P 500	$	103,578,074
S&P 500/BARRA Growth		14,079,948
S&P 500/BARRA Value		22,489,348
S&P MidCap 400		10,164,829
S&P MidCap 400/BARRA Growth		2,462,225
S&P MidCap 400/BARRA Value		8,716,253
S&P SmallCap 600		10,007,637
S&P SmallCap 600/BARRA Growth		2,108,424
S&P SmallCap 600/BARRA Value		5,414,688
S&P 1500		184,727

126 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited)

iSHARES^® TRUST

The tables that follow present information about the differences between the daily market price on secondary markets for shares of an 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. The “Market Price” of each iShares Fund generally is determined using the midpoint between the highest bid and the lowest offer on the stock exchange on which the shares of such Fund is listed for trading, as of the time that the Fund’s NAV is calculated. Each Fund’s Market Price may be at, above or below its NAV. The NAV of each Fund will fluctuate with changes in the market value of its portfolio holdings. The Market 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 (expressed as a percentage) between the NAV and Market Price of a Fund on a given day, generally at the time NAV is calculated. 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.

The following information shows the frequency distributions of premiums and discounts for each of the iShares Funds included in this report, except for iShares S&P 1500 Index Fund. The information shown for each Fund is for each full calendar quarter completed after the inception date of such Fund through March 31, 2004, the date of the most recent calendar quarter end. Information for the iShares S&P 1500 Index Fund is not presented, as the Fund commenced operations on January 20, 2004, and did not have a full quarter of information as of March 31, 2004. The specific periods covered for each Fund are disclosed in the table for such Fund.

Each line in the table shows the number of trading days in which the ishares Fund traded within the premium/discount range indicated. The number of trading days in each premium/discount range is also shown as a percentage of the total number of trading days in the period covered by each table. All data presented here represents past performance, which cannot be used to predict future results.

iShares S&P 500 Index Fund

Period Covered: July 1, 2000 through March 31, 2004

Premium/Discount Range	Number of Days	Percentage of Total Days
Greater than 0.5%	6	0.64	%
Between 0.5% and – 0.5%	915	97.66
Less than – 0.5% and Greater than – 1.0%	11	1.17
Less than – 1.0%	5	0.53
	937	100.00	%

iShares S&P 500/BARRA Growth Index Fund

Period Covered: July 1, 2000 through March 31, 2004

Premium/Discount Range	Number of Days	Percentage of Total Days
Greater than 1.0%	1	0.11	%
Greater than 0.5% and Less than 1.0%	13	1.39
Between 0.5% and – 0.5%	902	96.26
Less than – 0.5% and Greater than – 1.0%	15	1.60
Less than – 1.0%	6	0.64
	937	100.00	%

SUPPLEMENTAL INFORMATION 127

Supplemental Information (Unaudited) (Continued)

iSHARES^® TRUST

iShares S&P 500/BARRA Value Index Fund

Period Covered: July 1, 2000 through March 31, 2004

Premium/Discount Range	Number of Days	Percentage of Total Days
Greater than 0.5%	6	0.64	%
Between 0.5% and – 0.5%	918	97.97
Less than – 0.5% and Greater than – 1.0%	9	0.96
Less than – 1.0%	4	0.43
	937	100.00	%

iShares S&P MidCap 400 Index Fund

Period Covered: July 1, 2000 through March 31, 2004

Premium/Discount Range	Number of Days	Percentage of Total Days
Greater than 0.5%	8	0.85	%
Between 0.5% and – 0.5%	912	97.34
Less than – 0.5% and Greater than – 1.0%	12	1.28
Less than – 1.0%	5	0.53
	937	100.00	%

iShares S&P MidCap 400/BARRA Growth Index Fund

Period Covered: October 1, 2000 through March 31, 2004

Premium/Discount Range	Number of Days	Percentage of Total Days
Greater than 0.5% and Less than 1.0%	9	1.03	%
Between 0.5% and – 0.5%	845	96.68
Less than – 0.5% and Greater than – 1.0%	12	1.37
Less than – 1.0%	8	0.92
	874	100.00	%

iShares S&P MidCap 400/BARRA Value Index Fund

Period Covered: October 1, 2000 through March 31, 2004

Premium/Discount Range	Number of Days	Percentage of Total Days
Greater than 0.5% and Less than 1.0%	9	1.03	%
Between 0.5% and – 0.5%	850	97.26
Less than – 0.5% and Greater than – 1.0%	10	1.14
Less than – 1.0%	5	0.57
	874	100.00	%

128 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^® TRUST

iShares S&P SmallCap 600 Index Fund

Period Covered: July 1, 2000 through March 31, 2004

Premium/Discount Range	Number of Days	Percentage Of Total Days
Greater than 0.5% and Less than 1.0%	10	1.07	%
Between 0.5% and – 0.5%	903	96.37
Less than – 0.5% and Greater than – 1.0%	19	2.03
Less than – 1.0%	5	0.53
	937	100.00	%

iShares S&P SmallCap 600/BARRA Growth Index Fund

Period Covered: October 1, 2000 through March 31, 2004

Premium/Discount Range	Number of Days	Percentage Of Total Days
Greater than 1.0%	1	0.11	%
Greater than 0.5% and Less than 1.0%	12	1.37
Between 0.5% and – 0.5%	837	95.78
Less than – 0.5% and Greater than – 1.0%	19	2.17
Less than – 1.0%	5	0.57
	874	100.00	%

iShares S&P SmallCap 600/BARRA Value Index Fund

Period Covered: October 1, 2000 through March 31, 2004

Premium/Discount Range	Number of Days	Percentage Of Total Days
Greater than 0.5% and Less than 1.0%	20	2.29	%
Between 0.5% and – 0.5%	823	94.16
Less than – 0.5% and Greater than – 1.0%	24	2.75
Less than – 1.0%	7	0.80
	874	100.00	%

SUPPLEMENTAL INFORMATION 129

Trustee Information (Unaudited)

iSHARES^® TRUST

The Board of Trustees has responsibility for the overall management and operations of the Trust, including general supervision of the duties performed by BGFA and other service providers. Each Trustee serves until his or her successor is duly elected or appointed and qualified.

iShares Trust, iShares, Inc., Barclays Global Investors Funds and Master Investment Portfolio are considered to be members of the same fund complex, as defined in Form N-1A under the 1940 Act. Each Trustee of iShares Trust also serves as a Director for iShares, Inc. and oversees 87 portfolios within the fund complex. In addition, Lee T. Kranefuss and Richard K. Lyons each serves as a Trustee for Barclays Global Investors Funds and Master Investment Portfolio and oversees 114 portfolios within the fund complex.

Unless otherwise noted in the tables below, the address for each Trustee is 45 Fremont Street, San Francisco, California 94105. Additional information about the Funds’ Trustees may be found in the Funds’ Statement of Additional Information, which is available without charge upon request by calling toll-free 1-800-474-2737.

Interested Trustees

Name and Age	Position(s), Length of Service	Principal Occupation(s) During Past 5 Years	Other Directorships Held
*Lee T. Kranefuss (42)	Trustee, Chairman, and President (since June 18, 2003)	Chief Executive Officer of Intermediary Investor and Exchange Traded Products Business of BGI (since 2003) Chief Executive Officer of the individual Investor Business of BGI (1997-2003).	Director (since June 18, 2003) of iShares, Inc.; Board of Trustees for Barclays Global Investors Funds and Master Investment Portfolio (since 2001).
*Nathan Most (90)	Trustee (since December 16, 1999)	Consultant to BGI (1998-2002), American Stock Exchange (1996-2000) and the Hong Kong Stock Exchange (1998 to present); Consultant to the Amsterdam Stock Exchange (1997-1998); Consultant to the Pacific Stock Exchange (1997-1998).	Director (since 1996) and President (1996-2002) of iShares, Inc.
*John E. Martinez (42)	Trustee (since December 5, 2003)	Co-CEO of Global Index and Markets Group of BGI (2001-2003): Chairman of Barclays Global Investors Services (2000-2003); CEO of Capital Markets Group of BGI (1996-2001).	Director (since December 5, 2003) of iShares, Inc.; Director (since November 2003) of Barclays Global Investors UK Holdings.

* Lee T. Kranefuss, Nathan Most and John E. Martinez are deemed to be “interested persons” (as defined in the 1940 Act) of the Trust due to their affiliations with BGFA, the Funds’ investment advisor and BGI, the parent company of BGFA.

130 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Trustee Information (Unaudited) (Continued)

iSHARES^® TRUST

Independent Trustees

Name and Age	Position(s), Length of Service	Principal Occupation(s) During Past 5 Years	Other Directorships Held
John B. Carroll (68)	Trustee (since January 1, 2002)	Retired Vice President of Investment Management (1984-2000) of Verizon Corporation; Advisory Board member of Ibbotson Associates (1992-1998); former Vice Chairman and Executive Committee Member (1994-1998) of the Committee on Investment of Employee Benefit Assets of the Financial Executive Institute.	Director (since 1996) of iShares, Inc.; Trustee and member of the Executive Committee (since 1991) of The Common Fund Institutional Funds, a non-profit organization; Member of the Board of Managers of JP Morgan Private Equity Funds.
Richard K. Lyons (43)	Trustee (since February 15, 2000)	Professor, University of California, Berkeley: Haas School of Business (since 1993); Consultant for IMF World Bank, Federal Reserve Bank, and Citibank N.A. (since 2000).	Director (since 2001) of iShares, Inc.; Trustee of Master Investment Portfolio and Barclays Global Investors Funds (since 2001); Board of Trustees: Trustee (Chairman) Matthews Asian Funds since 1995 (oversees 6 portfolios).
George C. Parker (65)	Trustee (since February 15, 2000)	Dean Witter Distinguished Professor of Finance (since 1994); Associate Dean for Academic Affairs, Director of MBA Program, and Professor, Stanford University: Graduate School of Business (1993-2001).	Director (since 2001) of iShares, Inc.; Bailard, Biehl and Kaiser, Inc. (since 1985); California Casualty Group of Insurance Companies (since 1978); Continental Airlines, Inc. (since 1996); Community First Financial Group (since 1995); Dresdner/RCM Mutual Funds (1994-2002); Tyon Ranch Company (since 1999).
W. Allen Reed (56)	Trustee (since January 1, 2002)	President and Chief Executive Officer (since 1994) of General Motors Investment Management Corporation.	Director (since 1996) of iShares, Inc.; Director (since 1994) of General Motors Investment Management Corporation; Director (1995-1998) of Taubman Centers, Inc. (a real estate investment trust); Director (since 1992) of FLIR Systems (an imaging technology company); Director (since 1994) of General Motors Acceptance Corporation; Director (since 1994) of GMAC Insurance Holdings, Inc.; Director (since 1995) of Global Emerging Markets Fund; Director (since 2000) of Temple Inland Industries; Chairman (since 1995) of the Investment Advisory Committee of Howard Hughs Medical Institute.

TRUSTEE INFORMATION 131

Trustee Information (Unaudited) (Continued)

iSHARES^® TRUST

Officer

Name and Age	Position(s), Length of Service	Principal Occupation(s) During Past 5 Years	Other Directorships Held
Michael A. Latham (38)	Secretary, Treasurer and Principal Financial Officer (since February 28, 2002)	Chief Operating Officer of the Intermediary Investor and Exchange Traded Products Business of BGI (since 2003), Director of Mutual Fund Delivery in the U.S. Individual Investor Business of BGI (2000-2003); Head of Operations, BGI Europe (1997-2000).	None.

132 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes:

NOTES 133

The iShares^® Family of Funds

The following is a list of iShares Funds being offered, along with their respective exchange trading symbols. Please call iShares at 1-800-iShares (1-800-474-2737) to obtain a prospectus for any iShares fund. The prospectus contains more complete information, including charges, expenses, investment objectives and risk factors which should be carefully considered to determine if the fund(s)are an appropriate investment for you. Read the prospectus(es) carefully before investing. Investing involves risk, including possible loss of principal.

iShares S&P Domestic Index Funds	iShares Russell Index Funds
S&P 1500 (ISI)	Russell 3000 (IWV)
S&P 500 (IVV)	Russell 3000 Growth (IWZ)
S&P 500/BARRA Growth (IVW)	Russell 3000 Value (IWW)
S&P 500/BARRA Value (IVE)	Russell 1000 (IWB)
S&P MidCap 400 (IJH)	Russell 1000 Growth (IWF)
S&P MidCap 400/BARRA Growth (IJK)	Russell 1000 Value (IWD)
S&P MidCap 400/BARRA Value (IJJ)	Russell Midcap (IWR)
S&P SmallCap 600 (IJR)	Russell Midcap Growth (IWP)
S&P SmallCap 600/BARRA Growth (IJT)	Russell Midcap Value (IWS)
S&P SmallCap 600/BARRA Value (IJS)	Russell 2000 (IWM)
S&P 100 (OEF)	Russell 2000 Growth (IWO)
	Russell 2000 Value (IWN)
iShares Sector And Specialty Index Funds
Cohen & Steers Realty Majors (ICF)	iShares NYSE Index Funds
Dow Jones U.S. Basic Materials Sector (IYM)	NYSE 100 (NY)
Dow Jones U.S. Consumer Cyclical Sector (IYC)	NYSE Composite (NYC)
Dow Jones U.S. Consumer Non-Cyclical Sector (IYK)
Dow Jones U.S. Energy Sector (IYE)	iShares International Index Funds
Dow Jones U.S. Financial Sector (IYF)	MSCI Australia (EWA)
Dow Jones U.S. Financial Services (IYG)	MSCI Austria (EWO)
Dow Jones U.S. Healthcare Sector (IYH)	MSCI Belgium (EWK)
Dow Jones U.S. Industrial Sector (IYJ)	MSCI Brazil (EWZ)
Dow Jones U.S. Real Estate (IYR)	MSCI Canada (EWC)
Dow Jones Select Dividend (DVY)	MSCI EAFE (EFA)
Dow Jones U.S. Technology Sector (IYW)	MSCI Emerging Markets (EEM)
Dow Jones U.S. Telecommunications Sector (IYZ)	MSCI EMU (EZU)
Dow Jones U.S. Total Market (IYY)	MSCI France (EWQ)
Dow Jones Transportation Average (IYT)	MSCI Germany (EWG)
Dow Jones U.S. Utilities Sector (IDU)	MSCI Hong Kong (EWH)
Goldman Sachs Natural Resources (IGE)	MSCI Italy (EWI)
Goldman Sachs Networking (IGN)	MSCI Japan (EWJ)
Goldman Sachs Semiconductor (IGW)	MSCI Malaysia (EWM)
Goldman Sachs Software (IGV)	MSCI Mexico (EWW)
Goldman Sachs Technology (IGM)	MSCI Netherlands (EWN)
Nasdaq Biotechnology (IBB)	MSCI Pacific ex-Japan (EPP)
S&P Global Energy Sector (IXC)	MSCI Singapore (EWS)
S&P Global Financials Sector (IXG)	MSCI South Africa (EZA)
S&P Global Healthcare Sector (IXJ)	MSCI South Korea (EWY)
S&P Global Technology Sector (IXN)	MSCI Spain (EWP)
S&P Global Telecommunications Sector (IXP)	MSCI Sweden (EWD)
	MSCI Switzerland (EWL)
iShares Bond Funds	MSCI Taiwan (EWT)
Lehman Aggregate (AGG)	MSCI United Kingdom (EWU)
Lehman TIPS (TIP)	S&P Europe 350 (IEV)
Lehman 1-3 Year Treasury (SHY)	S&P Global 100 (IOO)
Lehman 7-10 Year Treasury (IEF)	S&P Latin America 40 (ILF)
Lehman 20+ Year Treasury (TLT)	S&P/TOPIX 150 (ITF)
GS $ InvesTop™ Corporate (LQD)

An investment in the fund(s) is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.

iShares is a registered trademark of Barclays Global Investors, N.A. The iShares Funds are not sponsored, endorsed or issued by Goldman, Sachs & Co. or Lehman Brothers, nor are they sponsored, endorsed, issued, sold or promoted by Cohen & Steers Capital Management, Inc., Dow Jones & Company, Inc., Morgan Stanley Capital International, The Nasdaq Stock Market, Inc., New York Stock Exchange, Inc., Frank Russell Company, or Standard & Poor’s. None of these companies make any representation regarding the advisability of investing in the iShares Funds. Neither SEI nor BGI, nor any of their affiliates, are affiliated with Goldman, Sachs & Co. or Lehman Brothers. “GS $  InvesTop^™” and “Goldman Sachs^®” are trademarks of Goldman, Sachs & Co.

This advertising section does not constitute part of the 2004 Annual Report.

134 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

The iShares Funds are distributed by SEI Investments Distribution Co. (SEI). Barclays Global Fund Advisors (BGFA) serves as an advisor to the iShares Funds. Barclays Global Investors Services (BGIS) assists in the marketing of the iShares Funds. BGFA and BGIS are subsidiaries of Barclays Global Investors, N.A., a wholly owned subsidiary of Barclays Bank PLC, none of which is affiliated with SEI.

The iShares Funds are not sponsored, endorsed, issued, sold or promoted by Standard and Poor’s, nor does this company make any representation regarding the advisability of investing in the iShares Funds.

Investing involves risk, including possible loss of principal.

©2004 Barclays Global Investors. All rights reserved. iShares is a registered trademark of Barclays Global Investors, N.A. All other trademarks, service-marks or registered trademarks are the property of their respective owners.

A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling toll-free 1 800 474 2737; on the Funds’ website at www.iShares.com; and on the Securities and Exchange Commision’s website at www.sec.gov.

This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current prospectus.

iShares^® Industrial strength investment tools from BARCLAYS GLOBAL INVESTORS

1 800 iSHARES (1 800 474 2737) WWW. iSHARES.COM

[GRAPHIC APPEARS HERE]

iShares^®

ITEM 1. Report to Stockholders

2004 ANNUAL REPORT TO SHAREHOLDERS

MARCH 31, 2004

iSHARES RUSSELL 1000 INDEX FUND

iSHARES RUSSELL 1000 GROWTH INDEX FUND

iSHARES RUSSELL 1000 VALUE INDEX FUND

iSHARES RUSSELL 2000 INDEX FUND

iSHARES RUSSELL 2000 GROWTH INDEX FUND

iSHARES RUSSELL 2000 VALUE INDEX FUND

Table of Contents

Shareholder Letter	1
Managers’ Discussion & Analysis	4
Schedules of Investments	8
iShares Russell 1000 Index Fund	8
iShares Russell 1000 Growth Index Fund	23
iShares Russell 1000 Value Index Fund	33
iShares Russell 2000 Index Fund	45
iShares Russell 2000 Growth Index Fund	73
iShares Russell 2000 Value Index Fund	93
Financial Statements	112
Financial Highlights	116
Notes to the Financial Statements	122
Report of Independent Registered Public Accounting Firm	128
Tax Information (Unaudited)	129
Supplemental Information (Unaudited)	130
Trustee Information (Unaudited)	133
iShares Family of Funds	138

To Our Shareholders:

Stock markets generally posted solid gains during the last twelve months, reversing the trend of the past several years. The uncertainty that characterized the first few months of the fiscal year, including war in Iraq and high unemployment levels, diminished as the year progressed. Healthy gross domestic product (GDP) growth in the third and fourth quarters of 2003 contributed to the performance trend, and lower unemployment rates in early 2004 provided additional encouragement. While the performance of the past year has been a welcome relief, there is no guarantee that more challenging conditions will not return.

The iShares^® Funds continue to innovate and expand, offering more tools that help investors tailor their portfolios to achieve diversity and address volatility. For example, the iShares family of funds recently partnered with the New York Stock Exchange (the “NYSE”) and introduced two new funds based on NYSE indexes. The iShares NYSE Composite Index Fund provides broad-based exposure to common stocks, ADRs, real estate investment trusts and tracking stocks listed on the NYSE. The iShares NYSE 100 Index Fund offers exposure to the largest 100 U.S. companies, based on market capitalization, listed on the NYSE. Launched late in 2003, the iShares Dow Jones Select Dividend Index Fund provides investors with exposure to fifty of the highest dividend-yielding securities in the Dow Jones U.S. Total Market Index. The iShares family of funds has also added the iShares Lehman TIPS Bond Fund, which provides the opportunity to gain exposure to inflation-protected government securities.

With the addition of these iShares Funds, investors can achieve even more diversity in their portfolios – and at lower cost, since iShares Fund fees are, on average, about half those of actively managed funds.¹ With more than 85 different funds in the iShares family of funds to choose from, investors have the ability to build a diverse portfolio that covers a wide range of market segments with various capitalizations and sectors, as well as value and growth, international and fixed income securities. That is important because market segments do not tend to move in tandem, particularly in volatile markets. Economic factors, including inflation, interest rate levels, currency valuations or the price of oil, as well as the normal pace of the economic cycle, all may result in one market segment outperforming another.

As market conditions change, we encourage you to talk with your financial advisor about what blend of investments or asset allocation can best help you meet your financial goals. We will continue to work closely with the financial advisor community to introduce innovative strategies and structures for their clients’ portfolios. To learn more about the iShares Funds, please visit our web site, www.iShares.com.

Regardless of market conditions, a sound, disciplined investing plan is essential. Such a plan should be grounded in key concepts: such as keeping the costs associated with investing as low as possible, managing risk and maintaining a diversified portfolio. That is why we believe the iShares Funds are an indispensable tool for investors. And that is also why more and more investors have recognized the benefits of the iShares Funds. Assets under management for the iShares family of funds continue to grow, and, as of March 31, 2004, had reached $72.8 billion.

On behalf of the iShares family of funds, we thank you for making the iShares Funds a part of your portfolio. We look forward to meeting your investment needs in the year ahead.

[GRAPHIC APPEARS HERE]

Lee T. Kranefuss

President and Chairman of the Board of Trustees

iShares Trust

¹ Morningstar Principia, BGI analysis 3/04.

SHAREHOLDER LETTER 1

The iShares Funds are distributed by SEI Investments Distribution Co. (SEI). Barclays Global Fund Advisors (BGFA) serves as an advisor to the iShares Funds. Barclays Global Investors Services (BGIS) assists in the marketing of the iShares Funds. BGFA and BGIS are subsidiaries of Barclays Global Investors, N.A., none of which is affiliated with SEI.

To determine if the Fund(s) are an appropriate investment for you, carefully consider the Funds’ investment objectives, risk factors and charges and expenses before investing. This and other information can be found in the Funds’ prospectuses, which may be obtained by calling 1-800-iShares or by visiting www.iShares.com. Read the prospectus carefully before investing.

There are risks involved with investing, including possible loss of principal. Diversification may not protect against market risk. An investment in the Funds is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The annual management fees of the iShares Funds may be substantially less than those of most mutual funds. iShares transactions will result in brokerage commissions, but the savings from lower annual fees may help offset these costs.

iShares is a registered trademark of Barclays Global Investors, N.A. The iShares Funds are not sponsored, endorsed, or issued by Lehman Brothers, nor are they sponsored, endorsed, issued, sold or promoted by Dow Jones & Company, Inc. or the New York Stock Exchange, Inc. None of these companies make any representation regarding the advisability of investing in the iShares Funds. Neither SEI nor BGI, nor any of their affiliates, are affiliated with the companies listed above.

This advertising section does not constitute part of the 2004 Annual Report.

2 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

THIS PAGE INTENTIONALLY LEFT BLANK.

3

Managers’ Discussion & Analysis

iSHARES^® RUSSELL 1000 INDEX FUNDS

Performance as of 3/31/04

	Average Annual Total Returns												Cumulative Total Returns
	Year Ended 3/31/04						Inception to 3/31/04						Inception to 3/31/04
iSHARES INDEX FUND	NAV		MARKET		INDEX		NAV		MARKET		INDEX		NAV		MARKET		INDEX
Russell 1000	36.12	%	36.31	%	36.37	%	(4.71	)%	(4.72	)%	(4.56	)%	(17.08	)%	(17.10	)%	(16.57	)%
Russell 1000 Growth	31.88	%	32.03	%	32.18	%	(12.09	)%	(12.10	)%	(11.89	)%	(39.19	)%	(39.21	)%	(38.66	)%
Russell 1000 Value	40.48	%	40.51	%	40.82	%	3.50	%	3.50	%	3.69	%	14.19	%	14.21	%	15.03	%

Total returns for the periods since inception are calculated from the inception date of each Fund (5/15/00, 5/22/00 and 5/22/00, respectively). “Average annual total returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative total returns” represent the total change in value of an investment over the periods indicated.

A fund’s per share net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of each Fund, and the market return is based on the market price per share of each Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which the shares of the Funds are listed for trading, as of the time that the Funds’ NAV is calculated. Since fund shares typically do not trade in the secondary market until several days after fund inception, for the period from inception to the first day of secondary market trading in Fund shares (5/19/00, 5/26/00 and 5/26/00, respectively), the NAV of the Funds is used as a proxy for secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in each Fund at Market Price and NAV, respectively.

An index is a statistical composite that tracks a specified financial market or sector. Unlike the Funds, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Funds. These expenses negatively impact the performance of each Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. The returns shown in the tables above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Funds will vary with changes in market conditions. Shares of the Funds may be worth more or less than their original cost when they are redeemed or sold in the market. Each Fund’s past performance is no guarantee of future results.

GROWTH OF $10,000 INVESTMENT

SINCE INCEPTION AT NET ASSET VALUE

[GRAPHIC APPEARS HERE]

	iSHARES RUSSELL 1000 INDEX FUND		RUSSELL 1000 INDEX		iSHARES RUSSELL 1000 GROWTH INDEX FUND		RUSSELL 1000 GROWTH INDEX		iSHARES RUSSELL 1000 VALUE INDEX FUND		RUSSELL 1000 VALUE INDEX
5/15/2000	$	10,000.00	$	10,000	$	10,000.00	$	10,000.00	$	10,000.00	$	10,000.00
5/31/2000	$	9,787.69	$	9,793	$	10,211.82	$	10,209.63	$	10,092.68	$	10,095.49
6/30/2000	$	10,032.65	$	10,043	$	10,987.06	$	10,983.35	$	9,619.64	$	9,634.10
7/31/2000	$	9,861.90	$	9,876	$	10,502.67	$	10,525.40	$	9,753.49	$	9,754.75
8/31/2000	$	10,595.75	$	10,607	$	11,466.40	$	11,478.50	$	10,294.26	$	10,297.52
9/30/2000	$	10,099.48	$	10,115	$	10,374.00	$	10,392.65	$	10,382.36	$	10,391.81
10/31/2000	$	9,981.89	$	9,993	$	9,885.65	$	9,900.93	$	10,640.22	$	10,647.07
11/30/2000	$	9,069.93	$	9,079	$	8,429.43	$	8,441.47	$	10,244.48	$	10,251.87
12/31/2000	$	9,177.88	$	9,189	$	8,158.55	$	8,174.32	$	10,756.42	$	10,765.52
1/31/2001	$	9,477.91	$	9,491	$	8,721.26	$	8,739.10	$	10,794.15	$	10,806.89
2/28/2001	$	8,593.54	$	8,606	$	7,239.26	$	7,255.45	$	10,492.36	$	10,506.38
3/31/2001	$	8,024.81	$	8,034	$	6,452.99	$	6,465.92	$	10,122.01	$	10,135.12
4/30/2001	$	8,667.06	$	8,680	$	7,269.26	$	7,283.69	$	10,619.28	$	10,632.16
5/31/2001	$	8,724.85	$	8,739	$	7,162.96	$	7,176.62	$	10,853.50	$	10,871.38
6/30/2001	$	8,526.78	$	8,541	$	6,993.38	$	7,010.12	$	10,611.98	$	10,630.04
7/31/2001	$	8,408.29	$	8,424	$	6,817.41	$	6,834.87	$	10,586.69	$	10,607.72
8/31/2001	$	7,896.19	$	7,911	$	6,259.10	$	6,275.78	$	10,162.06	$	10,182.35
9/30/2001	$	7,227.42	$	7,240	$	5,633.70	$	5,649.45	$	9,448.33	$	9,465.51
10/31/2001	$	7,373.00	$	7,391	$	5,921.41	$	5,946.05	$	9,366.70	$	9,384.11
11/30/2001	$	7,938.73	$	7,960	$	6,488.32	$	6,517.47	$	9,908.06	$	9,929.32
12/31/2001	$	8,021.98	$	8,045	$	6,474.81	$	6,505.08	$	10,139.75	$	10,163.65
1/31/2002	$	7,919.93	$	7,943	$	6,359.26	$	6,389.94	$	10,059.46	$	10,085.39
2/28/2002	$	7,760.90	$	7,785	$	6,095.14	$	6,124.76	$	10,074.06	$	10,101.53
3/31/2002	$	8,079.34	$	8,105	$	6,304.72	$	6,336.68	$	10,549.70	$	10,579.33
4/30/2002	$	7,615.65	$	7,641	$	5,788.55	$	5,819.60	$	10,185.35	$	10,216.46
5/31/2002	$	7,549.22	$	7,573	$	5,648.70	$	5,678.77	$	10,236.62	$	10,267.54
6/30/2002	$	6,989.41	$	7,014	$	5,125.58	$	5,153.48	$	9,645.08	$	9,678.19
7/31/2002	$	6,474.94	$	6,495	$	4,844.22	$	4,870.04	$	8,753.21	$	8,778.12
8/31/2002	$	6,508.26	$	6,529	$	4,858.23	$	4,884.65	$	8,815.73	$	8,844.83
9/30/2002	$	5,808.84	$	5,828	$	4,353.04	$	4,378.11	$	7,835.85	$	7,861.28
10/31/2002	$	6,290.24	$	6,312	$	4,750.98	$	4,779.59	$	8,414.57	$	8,443.81
11/30/2002	$	6,655.29	$	6,681	$	5,008.61	$	5,039.12	$	8,937.82	$	8,975.77
12/31/2002	$	6,279.40	$	6,303	$	4,662.28	$	4,690.91	$	8,550.03	$	8,586.22
1/31/2003	$	6,126.18	$	6,151	$	4,548.44	$	4,576.93	$	8,341.58	$	8,378.43
2/28/2003	$	6,030.75	$	6,055	$	4,526.70	$	4,555.87	$	8,118.25	$	8,154.73
3/31/2003	$	6,092.71	$	6,118	$	4,610.56	$	4,640.61	$	8,129.36	$	8,168.59
4/30/2003	$	6,582.34	$	6,612	$	4,950.23	$	4,983.55	$	8,842.20	$	8,887.43
5/31/2003	$	6,955.97	$	6,989	$	5,196.34	$	5,232.23	$	9,410.98	$	9,461.55
6/30/2003	$	7,047.05	$	7,081	$	5,266.29	$	5,304.44	$	9,527.28	$	9,579.82
7/31/2003	$	7,186.47	$	7,222	$	5,397.30	$	5,436.52	$	9,668.30	$	9,722.56
8/31/2003	$	7,331.31	$	7,369	$	5,530.88	$	5,571.89	$	9,816.84	$	9,874.23
9/30/2003	$	7,255.67	$	7,294	$	5,469.63	$	5,512.27	$	9,718.79	$	9,777.47
10/31/2003	$	7,679.60	$	7,721	$	5,775.86	$	5,822.06	$	10,310.39	$	10,375.85
11/30/2003	$	7,770.63	$	7,814	$	5,835.05	$	5,883.01	$	10,450.25	$	10,516.61
12/31/2003	$	8,140.82	$	8,188	$	6,035.67	$	6,086.46	$	11,089.42	$	11,164.84
1/31/2004	$	8,293.77	$	8,343	$	6,158.27	$	6,210.76	$	11,283.44	$	11,361.17
2/29/2004	$	8,408.49	$	8,459	$	6,196.98	$	6,250.21	$	11,523.10	$	11,604.67
3/31/2004	$	8,293.00	$	8,344	$	6,080.27	$	6,134.27	$	11,420.08	$	11,503.09

Performance figures assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Funds, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Funds. These expenses negatively impact the performance of each Fund. Each Fund’s past performance is no guarantee of future results

4 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

FUND ALLOCATION BY SECTOR

(% of Net Assets)

[GRAPHIC APPEARS HERE]

RUSSELL 1000

Auto & Transportation	2.13	%
Consumer Discretionary	14.08	%
Consumer Staples	7.33	%
Financial Services	23.58	%
Health Care	13.70	%
Integrated Oils	4.27	%
Materials & Processing	3.50	%
Other Energy	1.62	%
Other Sectors	4.17	%
Producer Durables	3.96	%
Short-Term and Net Other Assets	0.09	%
Technology	14.47	%
Utilities	7.10	%

RUSSELL 1000 GROWTH

Auto & Transportation	1.62	%
Consumer Discretionary	17.66	%
Consumer Staples	8.81	%
Financial Services	10.83	%
Health Care	24.14	%
Materials & Processing	1.34	%
Other Energy	1.22	%
Other Sectors	6.81	%
Producer Durables	3.52	%
Short-Term and Net Other Assets	0.08	%
Technology	22.39	%
Utilities	1.58	%

RUSSELL 1000 VALUE

Auto & Transportation	2.63	%
Consumer Discretionary	10.55	%
Consumer Staples	5.86	%
Financial Services	36.15	%
Health Care	3.41	%
Integrated Oils	8.46	%
Materials & Processing	5.63	%
Other Energy	2.03	%
Other Sectors, Short-Term and Net Other Assets	1.66	%
Producer Durables	4.42	%
Technology	6.67	%
Utilities	12.53	%

The iShares Russell 1000 Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Russell 1000 Index (the “Index”). For the one-year period ended March 31, 2004 (the “reporting period”), the Fund returned 36.12%, while the Index returned 36.37%.

The iShares Russell 1000 Growth Index Fund (the “Growth Fund”) and iShares Russell 1000 Value Index Fund (the “Value Fund”) seek investment results that correspond generally to the price and yield performance, before fees and expenses, of the growth and value components of the Index, as measured by the Russell 1000 Growth Index (the “Growth Index”) and the Russell 1000 Value Index (the “Value Index”), respectively. For the reporting period, the Growth Fund and the Value Fund returned 31.88% and 40.48%, respectively, while the Growth Index returned 32.18% and the Value Index returned 40.82%.

The U.S. stock market staged an impressive rally during the reporting period. The main catalyst for the market’s strong performance was an emerging economic recovery fueled by low interest rates and federal tax cuts. By the third quarter of 2003, economic growth surged to an 8.2% annual rate – the economy’s strongest quarter in nearly 20 years. As a result, corporate profit growth accelerated and investor confidence soared, providing a healthy boost to stock prices.

Although the stock market rally cooled off somewhat in early 2004, all of the major stock indexes posted gains of 30% or more for the reporting period. Large-capitalization stocks produced healthy returns but lagged their mid- and small-capitalization counterparts, which often outperform in the early stages of an economic recovery. Within the large-capitalization segment of the market, value shares outperformed growth stocks by a wide margin.

Reflecting the broad-based stock market rally, every sector within the Index posted double-digit gains for the reporting period. Technology was the best-performing sector, rebounding sharply after three straight years of declines. Financials, which made up the largest sector weighting in the Index at the end of the reporting period, also posted very strong results. Other leading sectors in the Index included materials and consumer discretionary, both of which are cyclical areas of the market that typically benefit from an economic recovery. Some of the more defensive sectors, such as health care and consumer staples, lagged the overall market.

All but one of the Fund’s ten largest individual holdings posted gains during the reporting period. Leading technology firms Cisco Systems Inc. (1.51% of the net assets of the Fund as of March 31, 2004) and Intel Corp. (1.62% of the net assets of the Fund as of March 31, 2004) climbed 81.59% and 67.08%, respectively. Citigroup Inc. (2.43% of the net assets of the Fund as of March 31, 2004) soared by 50.07%. The sole negative return among the Fund’s top ten holdings came from Johnson & Johnson (1.38% of the net assets of the Fund as of March 31, 2004), which declined 12.36% during the reporting period as several of the company’s pharmaceutical and medical products faced increased competition.

MANAGERS’ DISCUSSION & ANALYSIS 5

Manager’s Discussion & Analysis

iSHARES^® RUSSELL 2000 INDEX FUNDS

Performance as of 3/31/04

	Average Annual Total Returns												Cumulative Total Returns
	Year Ended 3/31/04						Inception to 3/31/04						Inception to 3/31/04
iSHARES INDEX FUND	NAV		MARKET		INDEX		NAV		MARKET		INDEX		NAV		MARKET		INDEX
Russell 2000	63.44	%	63.71	%	63.83	%	7.08	%	7.04	%	7.41	%	30.22	%	30.04	%	31.79	%
Russell 2000 Growth	62.76	%	62.96	%	63.16	%	(6.60	)%	(6.61	)%	(6.33	)%	(22.26	)%	(22.29	)%	(21.45	)%
Russell 2000 Value	64.00	%	64.20	%	64.49	%	16.64	%	16.64	%	17.00	%	76.40	%	76.42	%	78.47	%

Total returns for the periods since inception are calculated from the inception date of each Fund (5/22/00, 7/24/00 and 7/24/00, respectively). “Average annual total returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative total returns” represent the total change in value of an investment over the periods indicated.

Certain sectors and markets performed exceptionally well based on market conditions during the one-year period. Investors should not expect that such exceptional returns will be repeated.

A fund’s per share net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of each Fund, and the market return is based on the market price per share of each Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which the shares of the Funds are listed for trading, as of the time that the Funds’ NAV is calculated. Since fund shares typically do not trade in the secondary market until several days after fund inception, for the period from inception to the first day of secondary market trading in fund shares (5/26/00, 7/28/00 and 7/28/00, respectively), the NAV of the Funds is used as a proxy for secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in each Fund at Market Price and NAV, respectively.

An index is a statistical composite that tracks a specified financial market or sector. Unlike the Funds, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Funds. These expenses negatively impact the performance of each Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. The returns shown in the tables above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Funds will vary with changes in market conditions. Shares of the Funds may be worth more or less than their original cost when they are redeemed or sold in the market. Each Fund’s past performance is no guarantee of future results.

GROWTH OF $10,000 INVESTMENT

SINCE INCEPTION AT NET ASSET VALUE

[GRAPHIC APPEARS HERE]

	iSHARES RUSSELL 2000 INDEX FUND		RUSSELL 2000 INDEX		iSHARES RUSSELL 2000 GROWTH INDEX FUND		RUSSELL 2000 GROWTH INDEX		iSHARES RUSSELL 2000 VALUE INDEX FUND		RUSSELL 2000 VALUE INDEX
5/22/2000	$ $ $	10,000 10,098 10,976	$ $ $	10,000 10,100 10,981
7/24/2000	$ $	10,619 11,425	$ $	10,627 11,438	$ $ $	10,000 9,441 10,431	$ $ $	10,000 9,440 10,433	$ $ $	10,000 10,079 10,523	$ $ $	10,000 10,078 10,529
9/30/2000	$ $ $ $ $ $	11,055 10,588 9,485 10,295 10,831 10,121	$ $ $ $ $ $	11,102 10,607 9,518 10,335 10,873 10,160	$ $ $ $ $ $	9,910 9,109 7,453 7,906 8,547 7,375	$ $ $ $ $ $	9,914 9,110 7,456 7,912 8,552 7,380	$ $ $ $ $ $	10,452 10,423 10,207 11,299 11,610 11,593	$ $ $ $ $ $	10,469 10,432 10,220 11,318 11,630 11,614
3/31/2001	$ $ $ $ $ $	9,623 10,371 10,622 10,984 10,382 10,044	$ $ $ $ $ $	9,663 10,419 10,675 11,043 10,446 10,108	$ $ $ $ $ $	6,704 7,524 7,696 7,895 7,222 6,766	$ $ $ $ $ $	6,709 7,530 7,705 7,915 7,240 6,788	$ $ $ $ $ $	11,405 11,928 12,230 12,723 12,427 12,381	$ $ $ $ $ $	11,428 11,957 12,264 12,757 12,471 12,428
9/30/2001	$ $ $ $ $ $	8,691 9,184 9,895 10,498 10,387 10,103	$ $ $ $ $ $	8,748 9,260 9,976 10,592 10,482 10,195	$ $ $ $ $ $	5,673 6,202 6,719 7,130 6,875 6,430	$ $ $ $ $ $	5,692 6,240 6,761 7,182 6,926 6,478	$ $ $ $ $ $	11,015 11,274 12,081 12,815 12,982 13,060	$ $ $ $ $ $	11,056 11,344 12,160 12,904 13,076 13,155
3/31/2002	$ $ $ $ $ $	10,912 11,010 10,520 9,998 8,496 8,472	$ $ $ $ $ $	11,013 11,113 10,620 10,093 8,569 8,548	$ $ $ $ $ $	6,988 6,835 6,436 5,891 4,990 4,986	$ $ $ $ $ $	7,041 6,889 6,486 5,936 5,024 5,021	$ $ $ $ $ $	14,033 14,522 14,039 13,725 11,703 11,647	$ $ $ $ $ $	14,140 14,637 14,153 13,840 11,783 11,731
9/30/2002	$ $ $ $ $ $	7,863 8,115 8,837 8,344 8,112 7,867	$ $ $ $ $ $	7,934 8,189 8,919 8,422 8,189 7,942	$ $ $ $ $ $	4,626 4,858 5,339 4,971 4,834 4,706	$ $ $ $ $ $	4,659 4,894 5,379 5,008 4,872 4,742	$ $ $ $ $ $	10,813 10,975 11,846 11,339 11,018 10,645	$ $ $ $ $ $	10,894 11,057 11,940 11,430 11,107 10,734
3/31/2003	$ $ $ $ $ $	7,967 8,721 9,653 9,827 10,439 10,916	$ $ $ $ $ $	8,044 8,807 9,752 9,928 10,550 11,033	$ $ $ $ $ $	4,776 5,227 5,814 5,925 6,372 6,713	$ $ $ $ $ $	4,813 5,269 5,863 5,976 6,427 6,773	$ $ $ $ $ $	10,757 11,775 12,973 13,190 13,843 14,367	$ $ $ $ $ $	10,849 11,880 13,093 13,314 13,978 14,510
9/30/2003	$ $ $ $ $ $	10,712 11,609 12,019 12,261 12,791 12,904	$ $ $ $ $ $	10,829 11,738 12,155 12,401 12,940 13,056	$ $ $ $ $ $	6,541 7,105 7,335 7,366 7,752 7,739	$ $ $ $ $ $	6,601 7,172 7,405 7,439 7,829 7,817	$ $ $ $ $ $	14,198 15,352 15,936 16,509 17,075 17,403	$ $ $ $ $ $	14,343 15,512 16,107 16,690 17,267 17,601
3/31/2004	$	13,022	$	13,178	$	7,774	$	7,854	$	17,640	$	17,844

Performance figures assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Funds, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Funds. These expenses negatively impact the performance of each Fund. Each Fund’s past performance is no guarantee of future results.

6 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

FUND ALLOCATION BY SECTOR

(% of net assets)

[GRAPHIC APPEARS HERE]

RUSSELL 2000

Auto & Transportation	3.99	%
Consumer Discretionary	18.93	%
Consumer Staples	1.91	%
Financial Services	22.52	%
Health Care	13.18	%
Integrated Oils	0.05	%
Materials & Processing	8.57	%
Other Energy	4.07	%
Other Sectors, Short-Term and Net Other Assets	0.56	%
Producer Durables	8.12	%
Technology	14.12	%
Utilities	3.98	%

RUSSELL 2000 GROWTH

Auto & Transportation	3.08	%
Consumer Discretionary	20.77	%
Consumer Staples	1.13	%
Financial Services	12.90	%
Health Care	22.22	%
Integrated Oils	0.05	%
Materials & Processing	4.93	%
Other Energy	3.33	%
Producer Durables	7.94	%
Other Sectors, Short-Term and Net Other Assets	0.08	%
Technology	21.57	%
Utilities	2.00	%

RUSSELL 2000 VALUE

Auto & Transportation	4.88	%
Consumer Discretionary	17.15	%
Consumer Staples	2.65	%
Financial Services	31.79	%
Health Care	4.48	%
Integrated Oils	0.05	%
Materials & Processing	12.08	%
Other Energy	4.78	%
Other Sectors, Short-Term and Net Other Assets	1.02	%
Producer Durables	8.31	%
Technology	6.95	%
Utilities	5.86	%

The iShares Russell 2000 Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Russell 2000 Index (the “Index”). For the one-year period ended March 31, 2004 (the “reporting period”), the Fund returned 63.44%, while the Index returned 63.83%.

The iShares Russell 2000 Growth Index Fund (the “Growth Fund”) and iShares Russell 2000 Value Index Fund (the “Value Fund”) seek investment results that correspond generally to the price and yield performance, before fees and expenses, of the growth and value components of the Index, as measured by the Russell 2000 Growth Index (the “Growth Index”) and the Russell 2000 Value Index (the “Value Index”), respectively. For the reporting period, the Growth Fund and the Value Fund returned 62.76% and 64.00%, respectively, while the Growth Index returned 63.16% and the Value Index returned 64.49%.

The U.S. stock market staged an impressive rally during the reporting period. The main catalyst for the market’s strong performance was an emerging economic recovery fueled by low interest rates and federal tax cuts. By the third quarter of 2003, economic growth surged to an 8.2% annual rate – the economy’s strongest quarter in nearly 20 years. As a result, corporate profit growth accelerated and investor confidence soared, providing a healthy boost to stock prices.

Although the stock market rally cooled off somewhat in early 2004, all of the major stock indexes posted gains of 30% or more for the reporting period. Small-capitalization stocks, which typically perform best in the early stages of an economic recovery, led the market’s advance, outperforming their mid- and large-capitalization counterparts. Within the small-capitalization segment of the market, value and growth stocks posted similar returns, but value came out slightly ahead.

Reflecting the broad-based stock market rally, every sector within the Index posted very strong gains for the reporting period. Technology was the best-performing sector, rebounding sharply after three straight years of declines. Other leading sectors in the Index included materials, a cyclical sector that typically benefits from an economic recovery, and health care, which got a boost from the outsized performance of biotechnology stocks. Lagging sectors included financials, the largest sector weighting in the Index at the end of the reporting period, and defensive areas of the market such as utilities and consumer staples.

Each of the Fund’s ten largest individual holdings posted gains during the reporting period, and seven of them rose by more than 100%. The top performer was semiconductor maker Conexant Systems Inc. (0.27% of the net assets of the Fund as of March 31, 2004), which surged 404.11% as the company spun off some of its businesses and increased profitability. Biotechnology firm MGI Pharma Inc. (0.23% of the net assets of the Fund as of March 31, 2004) gained 386.19%. The Fund’s largest holding, forest products company Louisiana Pacific Corp. (0.29% of the net assets of the Fund as of March 31, 2004), climbed by 225.35%. The lowest return among the top ten holdings came from Covance Inc. (0.22% of the Fund’s net assets as of March 31, 2004), another biotechnology concern, which gained 48.96%.

MANAGERS’ DISCUSSION & ANALYSIS 7

Schedule of Investments

iSHARES^® RUSSELL 1000 INDEX FUND

March 31, 2004

Security	Shares	Value
COMMON STOCKS – 99.91%
General Electric Co.	1,903,367	$	58,090,761
Exxon Mobil Corp.	1,272,045		52,904,352
Pfizer Inc.	1,503,449		52,695,887
Citigroup Inc.	980,407		50,687,042
Microsoft Corp.	1,703,170		42,528,155
Intel Corp.	1,244,318		33,845,450
Cisco Systems Inc.1	1,336,621		31,437,326
American International Group Inc.	437,125		31,188,869
Wal-Mart Stores Inc.	506,127		30,210,721
Johnson & Johnson	565,366		28,675,364
International Business Machines Corp.	308,340		28,317,946
Procter & Gamble Co.	246,554		25,858,584
Bank of America Corp.	285,147		23,091,204
Altria Group Inc.	385,586		20,995,158
Coca-Cola Co. (The)	408,092		20,527,028
Verizon Communications Inc.	523,717		19,136,619
Merck & Co. Inc.	426,994		18,868,865
Wells Fargo & Company	321,222		18,203,651
ChevronTexaco Corp.	203,436		17,857,612
PepsiCo Inc.	327,165		17,617,835
Home Depot Inc.	436,781		16,318,138
JP Morgan Chase & Co.	386,788		16,225,757
SBC Communications Inc.	632,646		15,525,133
Dell Inc.1	433,753		14,582,776
Amgen Inc.1	245,545		14,283,353
Time Warner Inc.1	823,775		13,888,847
Fannie Mae	186,573		13,871,703
Hewlett-Packard Co.	581,224		13,275,156
Lilly (Eli) & Co.	183,765		12,293,878
Abbott Laboratories	297,220		12,215,742
3M Co.	148,836		12,185,203
Bank One Corp.	217,513		11,858,809
Comcast Corp. Class A1	407,220		11,703,503
Morgan Stanley	201,851		11,566,062
Viacom Inc. Class B	294,890		11,562,637
Wachovia Corp.	243,835		11,460,245
American Express Co.	218,795		11,344,521
Medtronic Inc.	232,203		11,087,693
Merrill Lynch & Co. Inc.	176,492		10,511,864
U.S. Bancorp	365,516		10,106,517
QUALCOMM Inc.	150,300		9,982,926
BellSouth Corp.	351,632		9,736,690
Walt Disney Co. (The)	389,023		9,721,685
Texas Instruments Inc.	329,246		9,620,568
Wyeth	252,840		9,494,142
ConocoPhillips	129,227		9,021,337
FleetBoston Financial Corp.	200,917		9,021,173
Bristol-Myers Squibb Co.	369,044		8,941,936
Oracle Corp.1	737,683		8,859,573
United Technologies Corp.	98,121		8,467,842
Lowe’s Companies Inc.	144,749		8,124,761
Anheuser-Busch Companies Inc.	158,849		8,101,299
Du Pont (E.I.) de Nemours and Co.	189,621		8,005,799
Freddie Mac	132,411		7,820,194
Target Corp.	173,393		7,809,621
Motorola Inc.	440,870		7,759,312
Gillette Co. (The)	194,411		7,601,470
First Data Corp.	176,210		7,429,014
UnitedHealth Group Inc.	113,014		7,282,622
Washington Mutual Inc.	165,865		7,084,094
Dow Chemical Co. (The)	174,297		7,020,683
McDonald’s Corp.	242,215		6,920,083
United Parcel Service Inc. Class B	97,686		6,822,390
Applied Materials Inc.1	315,103		6,736,902
Walgreen Co.	195,111		6,428,907
EMC Corp.1	449,178		6,113,313
Kimberly-Clark Corp.	96,842		6,110,730
Allstate Corp. (The)	134,003		6,091,776
Cardinal Health Inc.	84,984		5,855,398
AT&T Wireless Services Inc.1	427,443		5,817,499
Liberty Media Corp. Class A1	522,843		5,725,131
Boeing Co. (The)	139,364		5,723,679
Goldman Sachs Group Inc. (The)	54,169		5,652,535
MBNA Corp.	204,296		5,644,699
Colgate-Palmolive Co.	102,417		5,643,177
Alcoa Inc.	160,895		5,581,448
eBay Inc.1	79,776		5,530,870
Honeywell International Inc.	158,074		5,350,805
Fifth Third Bancorp	95,428		5,283,848
Boston Scientific Corp.1	122,577		5,194,813

8 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 1000 INDEX FUND

March 31, 2004

Security	Shares	Value
Caterpillar Inc.	65,565	$	5,184,225
Yahoo! Inc.1	102,300		4,970,757
Sysco Corp.	123,652		4,828,611
Emerson Electric Co.	80,125		4,801,090
Automatic Data Processing Inc.	113,828		4,780,776
Cendant Corp.	193,859		4,728,221
Marsh & McLennan Companies Inc.	101,910		4,718,433
Prudential Financial Inc.	105,009		4,702,303
Forest Laboratories Inc.1	64,947		4,651,504
Bank of New York Co. Inc. (The)	147,052		4,632,138
Ford Motor Company	334,782		4,542,992
Schering – Plough Corp.	279,580		4,534,788
Gannett Co. Inc.	51,125		4,506,157
FedEx Corp.	56,780		4,267,585
Exelon Corp.	61,710		4,249,968
Clear Channel Communications Inc.	99,816		4,227,208
Lehman Brothers Holdings Inc.	50,878		4,216,260
Southern Company	137,364		4,189,602
General Motors Corp.	88,027		4,146,072
Genentech Inc.1	39,031		4,130,260
Nextel Communications Inc. Class A1	166,022		4,105,724
Dominion Resources Inc.	61,053		3,925,708
AFLAC Inc.	97,703		3,921,798
Illinois Tool Works Inc.	48,932		3,876,882
Duke Energy Corp.	171,499		3,875,877
International Paper Co.	91,145		3,851,788
HCA Inc.	93,370		3,792,689
BB&T Corp.	106,159		3,747,413
National City Corp.	105,116		3,740,027
Guidant Corp.	58,861		3,730,022
Baxter International Inc.	113,703		3,512,286
Newmont Mining Corp.	74,205		3,460,179
Hartford Financial Services Group Inc.	53,740		3,423,238
Waste Management Inc.	112,859		3,406,085
Avon Products Inc.	44,683		3,390,099
Zimmer Holdings Inc.1	45,946		3,389,896
Analog Devices Inc.	69,515		3,337,415
Occidental Petroleum Corp.	72,167		3,323,290
State Street Corp.	63,411		3,305,615
General Mills Inc.	70,537		3,292,667
SLM Corp.	78,392		3,280,705
SunTrust Banks Inc.	46,956		3,273,303
Costco Wholesale Corp.1	86,796		3,260,058
Progressive Corp. (The)	37,110		3,250,836
Northrop Grumman Corp.	33,030		3,250,813
Capital One Financial Corp.	43,078		3,249,374
Lucent Technologies Inc.1	787,191		3,235,355
Sara Lee Corp.	147,879		3,232,635
Lockheed Martin Corp.	70,060		3,197,538
WellPoint Health Networks Inc.1	28,093		3,194,736
Sprint Corp. (FON Group)	171,531		3,161,316
Deere & Co.	45,549		3,157,001
Biogen Idec Inc.1	55,732		3,098,699
Harley-Davidson Inc.	57,526		3,068,437
PNC Financial Services Group	55,306		3,065,059
General Dynamics Corp.	33,610		3,002,381
Countrywide Financial Corp.	31,201		2,992,176
Alltel Corp.	59,225		2,954,735
AT&T Corp.	150,066		2,936,792
International Game Technology Inc.	65,002		2,922,490
Maxim Integrated Products Inc.	61,773		2,908,891
Union Pacific Corp.	48,342		2,891,818
Omnicom Group Inc.	35,868		2,878,407
Agilent Technologies Inc.1	89,971		2,845,783
Corning Inc.1	254,145		2,841,341
Starbucks Corp.1	74,302		2,804,901
Travelers Property Casualty Corp. Class B	160,459		2,771,127
McGraw-Hill Companies Inc. (The)	36,282		2,762,511
ConAgra Foods Inc.	102,169		2,752,433
Symantec Corp.1	59,440		2,752,072
Gap Inc. (The)	125,496		2,750,872
Weyerhaeuser Co.	41,733		2,733,512
CVS Corp.	75,200		2,654,560
Apache Corp.	61,486		2,654,351
Golden West Financial Corp.	23,696		2,652,767
Masco Corp.	86,856		2,643,897
Kohls Corp.1	54,491		2,633,550
Best Buy Co. Inc.	49,760		2,573,587
Mellon Financial Corp.	82,083		2,568,377
Sun Microsystems Inc.1	616,896		2,566,287
Devon Energy Corp.	44,024		2,559,996

SCHEDULES OF INVESTMENTS 9

Schedule of Investments (Continued)

iSHARES^® RUSSELL 1000 INDEX FUND

March 31, 2004

Security	Shares	Value
Entergy Corp.	42,953	$	2,555,703
Caremark Rx Inc.1	76,420		2,540,955
Halliburton Co.	83,486		2,537,140
InterActiveCorp1	80,029		2,528,116
Heinz (H.J.) Co.	66,849		2,492,799
American Electric Power Co. Inc.	75,143		2,473,708
St. Jude Medical Inc.1	34,309		2,473,679
Anadarko Petroleum Corp.	47,629		2,470,040
Chubb Corp.	35,318		2,456,014
Raytheon Co.	78,348		2,455,426
Aetna Inc.	27,357		2,454,470
Xilinx Inc.1	64,183		2,438,954
KeyCorp	80,430		2,436,225
Nike Inc. Class B	31,236		2,432,347
Burlington Resources Inc.	38,192		2,430,157
Staples Inc.1	94,932		2,410,323
Hancock (John) Financial Services Inc.	54,970		2,401,639
TJX Companies Inc.	97,693		2,399,340
Kroger Co.	143,542		2,388,539
Anthem Inc.1	26,301		2,383,923
Computer Associates International Inc.	88,408		2,374,639
Becton, Dickinson & Co.	48,453		2,349,001
Bed Bath & Beyond Inc.1	56,240		2,348,582
FPL Group Inc.	34,972		2,337,878
Baker Hughes Inc.	64,034		2,335,960
Schwab (Charles) Corp. (The)	200,861		2,331,996
Stryker Corp.	26,321		2,330,198
MetLife Inc.	64,899		2,315,596
Electronic Arts Inc.1	42,733		2,305,873
Praxair Inc.	61,872		2,296,689
Gilead Sciences Inc.1	40,638		2,266,381
PG&E Corp.1	77,885		2,256,328
FirstEnergy Corp.	57,419		2,243,935
Paychex Inc.	62,810		2,236,036
Burlington Northern Santa Fe Corp.	70,941		2,234,641
Equity Office Properties Trust	76,601		2,213,003
Linear Technology Corp.	59,533		2,203,912
Air Products & Chemicals Inc.	43,277		2,169,043
SouthTrust Corp.	64,763		2,147,541
Johnson Controls Inc.	36,011		2,130,051
Veritas Software Corp.1	79,000		2,125,890
Fortune Brands Inc.	27,639		2,117,977
Apollo Group Inc. Class A1	24,544		2,113,484
Yum! Brands Inc.1	55,628		2,113,308
DIRECTV Group Inc. (The)1	137,141		2,109,229
Tribune Co.	41,417		2,089,073
Allergan Inc.	24,770		2,084,643
Lexmark International Inc.1	22,380		2,058,960
Xerox Corp.1	141,172		2,056,876
Southwest Airlines Co.	143,845		2,044,037
Danaher Corp.	21,836		2,038,827
Public Service Enterprise Group Inc.	42,960		2,018,261
Marathon Oil Corp.	58,929		1,984,139
Principal Financial Group Inc.	55,273		1,969,377
Federated Department Stores Inc.	35,619		1,925,207
Progress Energy Inc.	40,757		1,918,840
Pitney Bowes Inc.	44,540		1,897,849
May Department Stores Co. (The)	54,853		1,896,817
PPG Industries Inc.	32,399		1,888,862
Biomet Inc.	49,063		1,882,057
Apple Computer Inc.1	69,564		1,881,706
Consolidated Edison Inc.	42,460		1,872,486
Kellogg Co.	46,813		1,836,942
Unocal Corp.	49,088		1,830,001
Monsanto Co.	49,755		1,824,516
Wrigley (William Jr.) Co.	30,856		1,824,207
KLA-Tencor Corp.1	36,190		1,822,166
Amazon.com Inc.1	41,857		1,811,571
Comerica Inc.	33,307		1,809,236
Penney (J.C.) Co. Inc. (Holding Co.)	51,838		1,802,926
Sears, Roebuck and Co.	41,832		1,797,103
PACCAR Inc.	31,427		1,767,454
TXU Corp.	61,624		1,766,144
Micron Technology Inc.1	104,833		1,751,759
Medco Health Solutions Inc.1	51,492		1,750,728
Franklin Resources Inc.	31,230		1,738,886
Adobe Systems Inc.	44,085		1,738,272
Block (H & R) Inc.	34,056		1,737,878
Genzyme Corp. – General Division1	36,776		1,729,943
Safeway Inc.1	84,011		1,728,946
Northern Trust Corp.	36,879		1,718,193
MBIA Inc.	27,355		1,715,158

10 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 1000 INDEX FUND

March 31, 2004

Security	Shares	Value
Limited Brands Inc.	84,115	$	1,682,300
New York Community Bancorp Inc.	48,996		1,679,583
Kraft Foods Inc.	52,343		1,675,499
Moody’s Corp.	23,657		1,674,916
Archer-Daniels-Midland Co.	98,628		1,663,854
Electronic Data Systems Corp.	85,768		1,659,611
Juniper Networks Inc.1	63,523		1,652,233
Bear Stearns Companies Inc. (The)	18,834		1,651,365
Norfolk Southern Corp.	74,492		1,645,528
Marshall & Ilsley Corp.	43,151		1,631,539
Broadcom Corp. Class A1	41,442		1,623,283
Lincoln National Corp.	33,923		1,605,236
Georgia-Pacific Corp.	47,615		1,604,149
Ameren Corp.	34,748		1,601,535
St. Paul Companies Inc.	39,935		1,597,799
Marriott International Inc. Class A	37,468		1,594,263
Eaton Corp.	28,318		1,591,188
McKesson Corp.	52,351		1,575,242
CIGNA Corp.	26,680		1,574,654
AmSouth Bancorp	66,748		1,569,245
Intuit Inc.1	34,954		1,568,736
Simon Property Group Inc.	26,829		1,567,887
Mattel Inc.	84,132		1,551,394
Equity Residential	51,844		1,547,543
Regions Financial Corp.	42,222		1,541,947
National Semiconductor Corp.1	34,680		1,540,832
PPL Corp.	33,278		1,517,477
Charter One Financial Inc.	42,773		1,512,453
Dover Corp.	38,495		1,492,451
Altera Corp.1	72,887		1,490,539
Jefferson – Pilot Corp.	27,045		1,487,745
SunGard Data Systems Inc.1	54,273		1,487,080
Valero Energy Corp.	24,665		1,478,913
Starwood Hotels & Resorts Worldwide Inc.	36,152		1,464,156
Loews Corp.	24,745		1,461,440
Clorox Co.	29,579		1,446,709
CIT Group Inc.	37,872		1,441,030
General Growth Properties Inc.	40,835		1,435,350
Albertson’s Inc.	64,564		1,430,093
EchoStar Communications Corp.1	43,543		1,426,033
Eastman Kodak Co.	54,449		1,424,930
Coach Inc.1	34,740		1,423,993
Synovus Financial Corp.	57,754		1,412,085
Hershey Foods Corp.	16,831		1,394,448
Sprint Corp. (PCS Group)1	149,622		1,376,522
Cinergy Corp.	33,468		1,368,507
Cox Communications Inc. Class A1	43,216		1,365,626
Computer Sciences Corp.1	33,835		1,364,566
AON Corp.	48,412		1,351,179
Xcel Energy Inc.	75,781		1,349,660
ITT Industries Inc.	17,473		1,333,714
Avaya Inc.1	83,837		1,331,332
American Standard Companies Inc.1	11,646		1,324,732
DTE Energy Co.	31,925		1,313,714
Edison International	54,051		1,312,899
Avery Dennison Corp.	20,993		1,305,975
Phelps Dodge Corp.1	15,932		1,301,007
Centex Corp.	23,510		1,270,951
Parker Hannifin Corp.	22,447		1,268,256
Constellation Energy Group Inc.	31,634		1,263,778
Fiserv Inc.1	34,693		1,240,969
Network Appliance Inc.1	57,811		1,240,046
Sovereign Bancorp Inc.	57,706		1,236,063
CSX Corp.	40,737		1,233,924
BJ Services Co.1	28,404		1,229,041
Interpublic Group of Companies Inc.1	79,323		1,219,988
North Fork Bancorp Inc.	28,716		1,215,261
Sempra Energy	38,140		1,212,852
Newell Rubbermaid Inc.	52,209		1,211,249
Rohm & Haas Co.	30,218		1,203,885
D.R. Horton Inc.	33,861		1,199,695
New York Times Co. Class A	27,080		1,196,936
Lennar Corp. Class A	22,148		1,196,656
Torchmark Corp.	22,238		1,196,182
Mylan Laboratories Inc.	51,637		1,173,709
Campbell Soup Co.	42,913		1,170,238
Donnelley (R.R.) & Sons Co.	38,357		1,160,299
Textron Inc.	21,815		1,159,467
PeopleSoft Inc.1	62,553		1,156,605
Quest Diagnostics Inc.	13,944		1,154,982
Ambac Financial Group Inc.	15,629		1,153,108

SCHEDULES OF INVESTMENTS 11

Schedule of Investments (Continued)

iSHARES^® RUSSELL 1000 INDEX FUND

March 31, 2004

Security	Shares	Value
Legg Mason Inc.	12,410	$	1,151,400
UST Inc.	31,797		1,147,872
Freeport-McMoRan Copper & Gold Inc.	29,361		1,147,721
AmerisourceBergen Corp.	20,969		1,146,585
First Tennessee National Corp.	23,993		1,144,466
Harrah’s Entertainment Inc.	20,836		1,143,688
KeySpan Corp.	29,887		1,142,281
Knight Ridder Inc.	15,572		1,140,649
M&T Bank Corp.	12,663		1,137,771
Kinder Morgan Inc.	18,004		1,134,612
Fidelity National Financial Inc.	28,544		1,130,342
Plum Creek Timber Co. Inc.	34,756		1,128,875
Cincinnati Financial Corp.	25,951		1,127,571
Qwest Communications International Inc.1	261,149		1,125,552
Varian Medical Systems Inc.1	12,970		1,119,441
National Commerce Financial Corp.	38,867		1,111,985
MedImmune Inc.1	48,175		1,111,879
ProLogis	30,987		1,111,504
Laboratory Corp. of America Holdings1	28,148		1,104,809
Office Depot Inc.1	58,646		1,103,718
Affiliated Computer Services Inc. Class A1	21,157		1,098,048
Rockwell Automation Inc.	31,524		1,092,937
Archstone – Smith Trust	36,894		1,088,742
MeadWestvaco Corp.	38,418		1,086,845
Popular Inc.	25,199		1,086,077
Genuine Parts Co.	33,068		1,081,985
IMS Health Inc.	46,165		1,073,798
Advanced Micro Devices Inc.1	66,132		1,073,322
SAFECO Corp.	24,836		1,072,170
Union Planters Corp.	35,814		1,069,048
Rockwell Collins Inc.	33,816		1,068,924
Sanmina-SCI Corp.1	97,022		1,068,212
T. Rowe Price Group Inc.	19,778		1,064,650
RadioShack Corp.	31,986		1,060,656
NiSource Inc.	49,798		1,058,207
Banknorth Group Inc.	30,973		1,054,321
Health Management Associates Inc. Class A	45,406		1,053,873
Hilton Hotels Corp.	64,758		1,052,317
JDS Uniphase Corp.1	258,169		1,050,748
Dollar General Corp.	54,249		1,041,581
Career Education Corp.1	18,353		1,039,514
Ecolab Inc.	36,304		1,035,753
Family Dollar Stores Inc.	28,795		1,035,180
Microchip Technology Inc.	38,975		1,035,176
AutoZone Inc.1	11,983		1,030,179
Pulte Homes Inc.	18,513		1,029,323
XTO Energy Inc.	40,619		1,025,217
Coca-Cola Enterprises Inc.	42,156		1,018,911
Compass Bancshares Inc.	24,319		1,008,509
Cintas Corp.	23,039		1,001,966
EOG Resources Inc.	21,817		1,001,182
Tenet Healthcare Corp.1	88,790		990,896
Kerr-McGee Corp.	19,228		990,242
Dean Foods Co.1	29,611		989,007
Zions Bancorporation	17,276		988,187
Vornado Realty Trust	16,259		983,344
Agere Systems Inc. Class B1	311,626		972,273
R.J. Reynolds Tobacco Holdings Inc.	16,022		969,331
Huntington Bancshares Inc.	43,471		964,621
Bard (C.R.) Inc.	9,868		963,512
Waters Corp.1	23,541		961,414
GreenPoint Financial Corp.	21,771		951,610
Kimco Realty Corp.	18,542		945,271
Williams Companies Inc.	98,613		943,726
Pepsi Bottling Group Inc.	31,358		932,901
Public Storage Inc.	19,129		930,817
Univision Communications Inc. Class A1	28,107		927,812
L-3 Communications Holdings Inc.	15,516		922,892
Nucor Corp.	15,007		922,630
Murphy Oil Corp.	14,604		919,614
Delphi Corp.	92,127		917,585
Rouse Co. (The)	17,084		915,702
Sunoco Inc.	14,675		915,427
Millennium Pharmaceuticals Inc.1	53,954		911,823
Ross Stores Inc.	29,605		906,209
Novellus Systems Inc.1	28,489		905,665
Siebel Systems Inc.1	78,398		902,361
BEA Systems Inc.1	70,706		902,209

12 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 1000 INDEX FUND

March 31, 2004

Security	Shares	Value
Sherwin-Williams Co. (The)	23,469	$	901,914
Fox Entertainment Group Inc. Class A1	33,133		897,904
Whirlpool Corp.	13,013		896,205
Amerada Hess Corp.	13,696		894,075
Duke Realty Corp.	25,664		891,054
McCormick & Co. Inc.	26,419		885,565
Express Scripts Inc.1	11,854		884,190
MGIC Investment Corp.	13,738		882,392
Thermo Electron Corp.1	31,057		878,292
Wendy’s International Inc.	21,550		876,870
BMC Software Inc.1	44,797		875,781
Jabil Circuit Inc.1	29,692		873,836
El Paso Corp.	122,638		871,956
Leggett & Platt Inc.	36,650		868,971
Estee Lauder Companies Inc. Class A	19,579		868,133
Watson Pharmaceuticals Inc.1	20,272		867,439
Scientific-Atlanta Inc.	26,693		863,252
iStar Financial Inc.	20,352		860,890
Smith International Inc.1	16,083		860,601
Vulcan Materials Co.	18,044		856,007
NTL Inc.1	14,338		852,394
E*TRADE Financial Corp.1	63,635		849,527
Old Republic International Corp.	34,301		842,433
Teradyne Inc.1	35,225		839,412
Black & Decker Corp.	14,719		838,100
Unisys Corp.1	58,562		836,265
Commerce Bancorp Inc.	12,610		830,747
Washington Post Company (The) Class B	939		830,461
Smurfit-Stone Container Corp.	46,953		825,903
Jones Apparel Group Inc.	22,820		824,943
Solectron Corp.1	149,052		824,258
Novell Inc.1	70,681		804,350
UNUMProvident Corp.	54,918		803,450
Darden Restaurants Inc.	32,319		801,188
Tiffany & Co.	20,977		800,692
ENSCO International Inc.	28,390		799,746
United States Steel Corp.	21,442		799,143
Patterson Dental Co.1	11,617		797,042
Sealed Air Corp.1	15,985		794,934
Applera Corp. – Applied Biosystems Group	40,073		792,644
Republic Services Inc.	29,162		789,415
Mohawk Industries Inc.1	9,527		784,548
Boston Properties Inc.	14,370		780,435
SUPERVALU Inc.	25,470		777,854
Harman International Industries Inc.	9,742		775,463
Oxford Health Plans Inc.	15,855		774,517
King Pharmaceuticals Inc.1	45,713		769,807
CDW Corp.	11,312		764,804
Synopsys Inc.1	26,374		763,791
Chico’s FAS Inc.1	16,436		762,630
Dun & Bradstreet Corp.1	14,182		758,737
Radian Group Inc.	17,738		755,639
CenturyTel Inc.	27,441		754,353
Janus Capital Group Inc.	46,005		753,562
NVIDIA Corp.1	28,433		753,190
SCANA Corp.	21,291		752,637
Cadence Design Systems Inc.1	50,907		750,369
Chiron Corp.1	17,037		749,798
Liz Claiborne Inc.	20,367		747,265
Sigma-Aldrich Corp.	13,502		747,201
Manpower Inc.	16,021		744,976
Host Marriott Corp.1	58,211		743,937
SanDisk Corp.1	26,172		742,500
Molex Inc.	24,384		741,030
Ball Corp.	10,928		740,700
VF Corp.	15,797		737,720
Autoliv Inc.	17,987		737,467
Expeditors International Washington Inc.	18,663		737,002
Lear Corp.	11,884		736,333
PETsMART Inc.	26,984		735,584
Omnicare Inc.	16,566		734,371
Celgene Corp.1	15,335		730,713
Allied Capital Corp.	24,063		728,868
American Power Conversion Corp.	31,656		728,405
Pioneer Natural Resources Co.	22,537		727,945
Tyson Foods Inc. Class A	40,119		724,148
Whole Foods Market Inc.	9,654		723,567
Sepracor Inc.1	15,029		722,895
XM Satellite Radio Holdings Inc. Class A1	25,782		721,896

SCHEDULES OF INVESTMENTS 13

Schedule of Investments (Continued)

iSHARES^® RUSSELL 1000 INDEX FUND

March 31, 2004

Security	Shares	Value
Nordstrom Inc.	18,073	$	721,113
NCR Corp.1	16,348		720,293
Liberty Property Trust	15,886		714,870
Caesars Entertainment Inc.1	54,479		710,406
Wisconsin Energy Corp.	22,033		708,361
Brinker International Inc.1	18,671		708,191
Energizer Holdings Inc.1	15,154		707,540
TCF Financial Corp.	13,782		703,847
Sirius Satellite Radio Inc.1	206,861		703,327
Health Care Property Investors Inc.	24,832		702,746
Energy East Corp.	27,668		701,660
Hibernia Corp. Class A	29,812		700,284
Equifax Inc.	27,069		698,922
Citizens Communications Co.1	53,740		695,396
Foot Locker Inc.	26,928		694,742
Grainger (W.W.) Inc.	14,456		693,888
Invitrogen Corp.1	9,629		690,303
DST Systems Inc.1	15,191		688,912
Citrix Systems Inc.1	31,750		686,435
AES Corp. (The)1	80,468		686,392
Toys R Us Inc.1	40,845		686,196
Telephone & Data Systems Inc.	9,640		683,187
ServiceMaster Co. (The)	56,774		681,856
Ameritrade Holding Corp.1	44,242		681,327
Dollar Tree Stores Inc.1	22,008		679,827
Pactiv Corp.1	30,431		677,090
SPX Corp.	14,872		676,379
Tellabs Inc.1	78,341		676,083
PMI Group Inc. (The)	18,067		674,983
Autodesk Inc.	21,216		670,850
AvalonBay Communities Inc.	12,519		670,768
Allied Waste Industries Inc.1	50,274		669,147
Mercury Interactive Corp.1	14,856		665,549
Diebold Inc.	13,830		665,500
Providian Financial Corp.1	50,573		662,506
DENTSPLY International Inc.	14,887		659,941
Robert Half International Inc.1	27,857		657,982
Brunswick Corp.	16,038		654,832
Hillenbrand Industries Inc.	9,624		653,373
Engelhard Corp.	21,803		651,692
VeriSign Inc.1	39,022		647,375
Vishay Intertechnology Inc.1	30,312		646,858
Mercantile Bankshares Corp.	15,024		645,581
Lam Research Corp.1	25,493		642,679
Beckman Coulter Inc.	11,689		637,518
Sabre Holdings Corp.	25,486		632,308
LSI Logic Corp.1	67,559		631,001
Gentex Corp.	14,487		628,446
Eastman Chemical Co.	14,675		626,329
Pinnacle West Capital Corp.	15,868		624,406
Goodrich (B.F.) Co.	22,199		623,126
KB Home	7,693		621,594
Michaels Stores Inc.	12,782		621,461
Fastenal Co.	11,487		616,737
Harris Corp.	12,716		615,582
Brown-Forman Corp. Class B	12,806		610,334
Bausch & Lomb Inc.	10,131		607,556
Symbol Technologies Inc.	43,955		606,579
Pepco Holdings Inc.	29,570		604,411
Manor Care Inc.	17,109		603,777
Barr Pharmaceuticals Inc.1	13,122		602,300
Ashland Inc.	12,937		601,441
PacifiCare Health Systems Inc.1	15,148		599,103
Fluor Corp.	15,451		597,799
IVAX Corp.1	26,237		597,416
Macerich Co. (The)	11,073		596,835
GTECH Holdings Corp.	10,082		596,249
ChoicePoint Inc.1	15,675		596,120
Scripps (E.W.) Co. Class A	5,894		595,942
Associated Bancorp	13,218		592,034
CenterPoint Energy Inc.	51,646		590,314
Humana Inc.1	31,017		589,943
QLogic Corp.1	17,809		587,875
Abercrombie & Fitch Co. Class A	17,342		586,853
Hasbro Inc.	26,826		583,465
Doral Financial Corp.	16,561		582,947
CarMax Inc.1	19,871		580,233
Questar Corp.	15,840		577,210
Outback Steakhouse Inc.	11,844		576,803
Developers Diversified Realty Corp.	14,244		575,458
Storage Technology Corp.1	20,637		574,328
Intersil Corp. Class A	25,705		572,964

14 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 1000 INDEX FUND

March 31, 2004

Security	Shares	Value
ALLETE Inc.	16,262	$	570,634
Edwards (A.G.) Inc.	14,503		567,357
AutoNation Inc.1	33,078		563,980
Commerce Bancshares Inc.	11,763		561,213
Avnet Inc.1	22,901		560,845
CH Robinson Worldwide Inc.	13,485		559,627
International Rectifier Corp.1	12,156		559,054
Dana Corp.	28,146		558,980
Coventry Health Care Inc.1	13,205		558,968
Lincare Holdings Inc.1	17,773		558,428
Temple-Inland Inc.	8,815		558,342
Astoria Financial Corp.	14,643		556,873
Gallagher (Arthur J.) & Co.	17,083		556,393
Corinthian Colleges Inc.1	16,784		554,879
Cephalon Inc.1	9,681		554,818
Lamar Advertising Co.1	13,786		554,473
Iron Mountain Inc.1	12,413		553,992
Henry Schein Inc.1	7,753		553,719
Hospitality Properties Trust	11,928		553,459
MGM Mirage1	12,174		551,969
Apartment Investment & Management Co. Class A	17,749		551,816
Pentair Inc.	9,346		551,414
Red Hat Inc.1	24,106		551,063
PMC-Sierra Inc.1	32,381		549,506
Williams-Sonoma Inc.1	16,060		549,252
Mandalay Resort Group	9,461		541,737
Comverse Technology Inc.1	29,811		540,772
AMB Property Corp.	14,511		539,374
Patterson-UTI Energy Inc.1	15,212		538,657
Constellation Brands Inc.1	16,765		538,156
DaVita Inc.1	11,250		537,187
Pogo Producing Co.	11,682		535,853
Cognizant Technology Solutions Corp.1	11,787		533,362
Compuware Corp.1	71,581		533,278
Network Associates Inc.1	29,581		532,458
Equitable Resources Inc.	11,984		532,329
Alliant Energy Corp.	20,379		531,077
Chesapeake Energy Corp.	39,425		528,295
TECO Energy Inc.	35,988		526,504
Leucadia National Corp.	9,873		526,033
Arrow Electronics Inc.1	20,485		521,548
UnionBanCal Corp.	9,949		521,228
Noble Energy Inc.	11,029		519,466
3Com Corp.1	73,332		517,724
Alberto-Culver Co.	11,796		517,491
Precision Castparts Corp.	11,731		516,516
Investors Financial Services Corp.	12,410		512,781
Catellus Development Corp.	19,695		512,267
NSTAR	10,094		511,968
WebMD Corp.1	57,310		509,486
Stanley Works (The)	11,871		506,654
New Plan Excel Realty Trust	18,499		505,948
Eaton Vance Corp.	13,265		505,662
Atmel Corp.1	77,754		505,401
MDU Resources Group Inc.	21,343		501,347
Valley National Bancorp	17,830		498,705
Apogent Technologies Inc.1	16,255		498,703
Hudson City Bancorp Inc.	13,178		498,656
Belo (A.H.) Corp.	17,915		497,320
Smucker (J.M.) Co. (The)	9,383		495,235
Fisher Scientific International Inc.1	8,953		492,773
Monster Worldwide Inc.1	18,776		491,931
ImClone Systems Inc.1	9,671		491,867
Bank of Hawaii Corp.	10,584		490,357
Pall Corp.	21,593		489,945
Berkley (W.R.) Corp.	12,281		489,766
Ceridian Corp.1	24,805		488,907
Mack-Cali Realty Corp.	10,871		488,217
Zebra Technologies Corp. Class A1	7,007		486,076
Health Net Inc.1	19,282		480,700
Westwood One Inc.1	16,228		477,915
Maytag Corp.	15,132		477,717
Tektronix Inc.	14,581		476,945
Valspar Corp. (The)	9,651		475,119
Navistar International Corp.1	10,357		474,868
United Dominion Realty Trust Inc.	24,048		471,822
Bemis Co.	18,070		469,820
AmeriCredit Corp.1	27,560		469,347
Thornburg Mortgage Inc.	15,070		468,677
Cypress Semiconductor Corp.1	22,795		466,614
City National Corp.	7,761		464,884

SCHEDULES OF INVESTMENTS 15

Schedule of Investments (Continued)

iSHARES^® RUSSELL 1000 INDEX FUND

March 31, 2004

Security	Shares	Value
Wilmington Trust Corp.	12,433	$	464,621
International Flavors & Fragrances Inc.	13,074		464,127
SEI Investment Co.	14,064		464,112
Rambus Inc.1	16,451		461,122
Markel Corp.1	1,594		458,913
Sky Financial Group Inc.	17,677		458,718
Protective Life Corp.	12,240		458,388
Weingarten Realty Investors	13,232		457,810
American Tower Corp. Class A1	39,945		453,376
Rite Aid Corp.1	83,297		453,136
Millipore Corp.1	8,797		451,990
Federated Investors Inc. Class B	14,341		450,738
DPL Inc.	24,023		450,431
Fair Isaac Corp.	12,436		448,691
Northeast Utilities	24,046		448,458
Rent-A-Center Inc.1	13,535		446,520
Fulton Financial Corp.	20,029		446,046
Great Plains Energy Inc.	13,126		443,528
CIENA Corp.1	88,996		442,310
UTStarcom Inc.1	15,320		440,603
PerkinElmer Inc.	21,260		439,869
ADC Telecommunications Inc.1	151,613		439,678
Colonial BancGroup Inc. (The)	23,731		439,023
Triad Hospitals Inc.1	14,232		438,630
Webster Financial Corp.	8,629		437,577
NVR Inc.1	948		436,080
NetScreen Technologies Inc.1	11,959		435,666
Applebee’s International Inc.	10,505		434,382
Smithfield Foods Inc.1	15,981		433,405
Service Corp. International1	57,919		432,655
BorgWarner Inc.	5,099		432,548
Bowater Inc.	9,899		431,893
JetBlue Airways Corp.1	17,066		431,599
Chelsea Property Group Inc.	6,851		431,202
Universal Health Services Inc. Class B	9,351		430,801
Boise Cascade Corp.	12,430		430,699
Sonoco Products Co.	17,700		429,756
Convergys Corp.1	28,254		429,461
National-Oilwell Inc.1	15,178		429,234
Annaly Mortgage Management Inc.	21,915		428,438
Protein Design Labs Inc.1	17,930		427,093
Martin Marietta Materials Inc.	9,250		426,980
Fairchild Semiconductor International Inc. Class A1	17,765		426,893
Saks Inc.1	24,160		425,216
OGE Energy Corp.	16,078		425,102
Ryder System Inc.	10,916		422,777
Ryland Group Inc.	4,751		422,031
Puget Energy Inc.	18,711		418,565
Western Digital Corp.1	37,262		418,452
Reliant Resources Inc.1	50,966		418,431
Cullen/Frost Bankers Inc.	9,749		416,867
HON Industries Inc.	11,184		415,597
Cheesecake Factory (The)1	8,984		414,432
ONEOK Inc.	18,372		414,289
Viad Corp.	17,123		413,863
Tech Data Corp.1	10,107		413,781
Amylin Pharmaceuticals Inc.1	17,460		413,627
Jacobs Engineering Group Inc.1	9,251		412,595
Hormel Foods Corp.	14,056		412,262
American Capital Strategies Ltd.	12,397		412,076
Pier 1 Imports Inc.	17,323		410,555
Rayonier Inc. REIT	9,367		409,432
Renal Care Group Inc.1	8,911		407,767
Newfield Exploration Co.1	8,469		405,919
Toll Brothers Inc.1	8,865		402,737
Reebok International Ltd.	9,675		400,061
Del Monte Foods Co.1	35,434		398,632
Level 3 Communications Inc.1	99,160		398,623
Circuit City Stores Inc.	35,176		397,489
Krispy Kreme Doughnuts Inc.1	11,567		397,211
Polycom Inc.1	18,674		396,449
Lyondell Chemical Co.	26,693		396,124
Medicis Pharmaceutical Corp. Class A	9,898		395,920
Rowan Companies Inc.1	18,765		395,754
Alliant Techsystems Inc.1	7,273		395,651
First American Corp.	12,971		394,578
Cooper Cameron Corp.1	8,881		391,208
Deluxe Corp.	9,719		389,732
Pan Pacific Retail Properties Inc.	7,478		389,604
Friedman, Billings, Ramsey Group, Inc. Class A	14,416		389,088

16 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 1000 INDEX FUND

March 31, 2004

Security	Shares	Value
Federal Realty Investment Trust	8,400	$	388,080
Donaldson Co. Inc.	14,568		386,489
Hubbell Inc. Class B	9,627		386,332
Education Management Corp.1	12,128		386,034
Cummins Inc.	6,590		385,185
Dow Jones & Co. Inc.	8,019		384,190
Cabot Corp.	11,704		383,891
Independence Community Bank Corp.	9,419		383,824
HCC Insurance Holdings Inc.	11,872		383,822
Affymetrix Inc.1	11,294		381,172
Nationwide Financial Services Inc.	10,562		380,760
FirstMerit Corp.	14,610		380,590
Graco Inc.	13,028		379,231
Advance Auto Parts Inc.1	9,323		379,166
IndyMac Bancorp Inc.	10,444		379,013
Aqua America Inc.	17,391		377,037
Lee Enterprises Inc.	8,321		375,943
Andrx Group1	13,814		375,741
HRPT Properties Trust	33,213		375,307
Pharmaceutical Resources Inc.1	6,589		374,651
Charles River Laboratories International Inc.1	8,726		373,909
ICOS Corp.1	10,084		373,612
Edwards Lifesciences Corp.1	11,663		372,633
Polaris Industries Inc.	8,198		372,517
Mills Corp.	6,983		372,124
Neiman-Marcus Group Inc. Class A	6,896		371,970
First Health Group Corp.1	17,015		371,948
Washington Federal Inc.	14,506		370,338
Brown & Brown Inc.	9,551		370,197
Regis Corp.	8,328		370,096
Ruby Tuesday Inc.	11,477		368,986
Hawaiian Electric Industries Inc.	7,114		368,790
Ingram Micro Inc. Class A1	20,343		368,208
Herman Miller Inc.	13,795		367,361
Unitrin Inc.	8,555		367,010
CheckFree Corp.1	12,441		366,512
CenterPoint Properties Corp.	4,434		365,805
Cablevision Systems Corp.1	15,928		364,433
StanCorp Financial Group Inc.	5,579		364,030
RPM International Inc.	21,996		363,814
CBRL Group Inc.	9,157		362,983
ARAMARK Corp. Class B	13,194		361,648
Neurocrine Biosciences Inc.1	6,099		360,451
Advanced Fibre Communications Inc.1	16,349		360,168
Borders Group Inc.	15,169		360,112
Certegy Inc.	10,281		360,041
Snap-On Inc.	11,111		359,330
BISYS Group Inc. (The)1	21,382		358,362
Reynolds & Reynolds Co. (The) Class A	12,522		355,750
Harsco Corp.	7,793		354,581
Pride International Inc.1	20,781		354,524
Foundry Networks Inc.1	20,647		354,509
IKON Office Solutions Inc.	27,459		351,475
Waddell & Reed Financial Inc. Class A	14,304		350,734
Respironics Inc.1	6,478		349,942
Transatlantic Holdings Inc.	3,988		347,793
Calpine Corp.1	74,306		347,009
Arden Realty Inc.	10,722		346,642
Vectren Corp.	14,048		346,564
Getty Images Inc.1	6,409		345,958
Healthcare Realty Trust Inc.	8,099		345,827
AGL Resources Inc.	11,863		344,264
Coors (Adolf) Company Class B	4,879		338,847
Steris Corp.1	13,130		338,754
Emulex Corp.1	15,854		337,532
IDEXX Laboratories Inc.1	5,894		335,192
Applied Micro Circuits Corp.1	58,289		335,162
Carlisle Companies Inc.	5,909		334,745
Weight Watchers International Inc.1	7,874		332,834
DeVry Inc.1	11,038		332,796
Realty Income Corp.	7,448		332,553
WPS Resources Corp.	6,953		332,353
Teleflex Inc.	6,749		332,253
CarrAmerica Realty Corp.	9,794		332,017
Corporate Executive Board Co. (The)	7,063		331,961
Entercom Communications Corp.1	7,311		330,969
Shurgard Storage Centers Inc. Class A	8,265		329,774
Big Lots Inc.1	22,610		327,845
Brocade Communications Systems Inc.1	48,892		325,621
Station Casinos Inc.	7,372		325,621
BRE Properties Inc. Class A	9,478		325,285

SCHEDULES OF INVESTMENTS 17

Schedule of Investments (Continued)

iSHARES^® RUSSELL 1000 INDEX FUND

March 31, 2004

Security	Shares	Value
Valeant Pharmaceuticals International	13,592	$	324,441
Stericycle Inc.1	6,736		322,385
Crane Co.	9,759		322,047
BancorpSouth Inc.	14,659		320,739
Hudson United Bancorp	8,429		320,723
Claire’s Stores Inc.	15,371		320,332
Westamerica Bancorp	6,332		319,513
O’Reilly Automotive Inc.1	7,961		318,758
Provident Financial Group Inc.	7,860		315,658
Whitney Holding Corp.	7,532		314,386
National Fuel Gas Co.	12,647		311,116
UGI Corp.	9,446		310,962
Meredith Corp.	6,147		310,792
BearingPoint Inc.1	28,929		310,119
CNF Inc.	9,209		309,422
Lubrizol Corp.	9,770		307,657
First Midwest Bancorp Inc.	9,009		307,567
Maxtor Corp.1	37,681		307,100
Varco International Inc.1	17,024		306,602
Cree Inc.1	13,732		306,224
Human Genome Sciences Inc.1	24,333		304,892
Peoples Energy Corp.	6,789		303,129
Performance Food Group Co.1	8,736		300,082
Tidewater Inc.	10,590		297,897
FMC Technologies Inc.1	10,977		296,708
Church & Dwight Co. Inc.	6,835		296,024
Silicon Laboratories Inc.1	5,581		295,123
Nicor Inc.	8,342		293,889
Integrated Device Technology Inc.1	19,592		293,880
Hunt (J.B.) Transport Services Inc.1	10,424		293,644
Forest City Enterprises Inc. Class A	5,439		292,890
Mettler Toledo International Inc.1	6,578		292,063
Camden Property Trust	6,487		291,591
Piedmont Natural Gas Co.	6,885		290,685
Apria Healthcare Group Inc.1	9,660		289,220
Grant Prideco Inc.1	18,608		288,424
Jefferies Group Inc.	8,157		288,187
Avocent Corp.1	7,818		287,624
Integrated Circuit Systems Inc.1	11,486		287,495
Old National Bancorp	12,548		283,585
MONY Group Inc. (The)1	9,015		283,432
Radio One Inc. Class D1	15,308		283,198
Owens-Illinois Inc.1	20,196		283,148
National Instruments Corp.	8,914		280,434
Furniture Brands International Inc.	8,706		280,333
AMETEK Inc.	10,926		280,143
ResMed Inc.1	6,194		279,907
Polo Ralph Lauren Corp.	8,154		279,519
International Speedway Corp. Class A	5,943		279,321
Raymond James Financial Inc.	11,210		278,556
Pixar Inc.1	4,317		278,274
Helmerich & Payne Inc.	9,672		277,103
AGCO Corp.1	13,371		276,913
First Bancorp	6,596		274,394
WGL Holdings Inc.	9,104		274,030
Trustmark Corp.	9,375		272,813
Duquesne Light Holdings Inc.	13,968		272,376
Crescent Real Estate Equities Co.	15,084		271,059
Wiley (John) & Sons Inc. Class A	9,009		269,639
Barnes & Noble Inc.1	8,263		269,374
Pharmaceutical Product Development Inc.1	9,037		269,212
Hovnanian Enterprises Inc. Class A1	6,236		269,083
Peabody Energy Corp.	5,784		269,014
Community Health Systems Inc.1	9,607		267,363
Acxiom Corp.	12,168		267,209
Key Energy Services Inc.1	24,290		267,190
Gemstar-TV Guide International Inc.1	39,575		265,548
International Bancshares Corp.	5,018		265,101
Scotts Co. (The) Class A1	4,122		264,426
Amkor Technology Inc.1	18,037		263,881
Trizec Properties Inc.	15,381		263,784
Harte-Hanks Inc.	11,105		260,079
Metro-Goldwyn-Mayer Inc.1	14,947		260,078
Macromedia Inc.1	12,943		259,766
Ethan Allen Interiors Inc.	6,192		255,482
M.D.C. Holdings Inc.	3,627		255,348
Cytec Industries Inc.	7,169		255,001
University of Phoenix Online1	2,930		254,969
ITT Educational Services Inc.1	8,126		253,531
St. Joe Company (The)	6,229		253,458
AptarGroup Inc.	6,592		253,133

18 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 1000 INDEX FUND

March 31, 2004

Security	Shares	Value
Packaging Corporation of America	11,219	$	253,101
Henry (Jack) & Associates Inc.	13,066		251,651
Lafarge North America Inc.	6,185		251,420
Park National Corp.	2,215		250,959
Imation Corp.	6,645		249,985
Florida Rock Industries Inc.	5,903		248,811
Airgas Inc.	11,541		245,823
Mercury General Corp.	4,846		241,961
Global Payments Inc.	5,321		239,871
CBL & Associates Properties Inc.	3,882		238,122
Worthington Industries Inc.	12,420		238,091
McClatchy Co. (The) Class A	3,348		237,842
Erie Indemnity Co. Class A	4,851		234,109
ArvinMeritor Inc.	11,793		233,855
Diamond Offshore Drilling Inc.	9,621		232,732
Valassis Communications Inc.1	7,653		232,651
ADTRAN Inc.	7,740		232,432
Regency Centers Corp.	4,914		229,631
PepsiAmericas Inc.	11,030		225,233
Cousins Properties Inc.	6,852		224,677
People’s Bank	4,824		224,268
DoubleClick Inc.1	19,765		222,356
BlackRock Inc.	3,579		218,927
Readers Digest Association Inc. (The)	15,349		216,114
Downey Financial Corp.	4,077		215,673
La-Z-Boy Inc.	9,880		214,989
Amphenol Corp. Class A1	7,192		213,602
Timken Co. (The)	9,178		213,205
United Bancshares Inc.	6,940		211,670
Loews Corporation – Carolina Group	7,682		210,103
IDT Corp.1	10,495		208,536
Timberland Co. Class A1	3,498		207,956
Dynegy Inc. Class A1	52,428		207,615
Lancaster Colony Corp.	5,105		206,242
American Axle & Manufacturing Holdings Inc.1	5,556		204,739
Crown Castle International Corp.1	16,113		203,507
UnitedGlobalCom Inc. Class A1	23,811		202,155
Premcor Inc.1	6,451		199,787
Media General Inc. Class A	2,963		199,351
Blyth Inc.	6,045		197,490
Piper Jaffray Companies Inc.1	3,636		196,889
American Financial Group Inc.	6,584		196,401
FNB Corp. (Florida)	8,797		194,414
LNR Property Corp.	3,572		191,209
Reinsurance Group of America Inc.	4,640		190,101
Nextel Partners Inc. Class A1	14,918		188,862
Westport Resources Corp.1	5,719		188,670
InterDigital Communications Corp.1	10,745		187,823
Wynn Resorts Ltd.1	5,361		187,635
Tootsie Roll Industries Inc.	5,002		182,857
Bio-Rad Laboratories Inc. Class A1	3,224		181,737
Marvel Enterprises Inc.1	9,431		180,971
99 Cents Only Stores1	7,309		178,486
Werner Enterprises Inc.	9,241		175,117
American National Insurance Co.	1,931		172,805
AVX Corp.	10,335		170,424
Instinet Group Inc.1	24,027		169,390
American Pharmaceutical Partners Inc.1	3,557		166,966
Western Gas Resources Inc.	3,275		166,534
Alleghany Corp.1	673		166,483
Delta Air Lines Inc.	20,839		165,045
Swift Transportation Co. Inc.1	9,421		161,759
WellChoice Inc.1	4,328		159,703
Talbots Inc. (The)	4,442		158,935
First National Bankshares of Florida	8,797		154,563
Scholastic Corp.1	5,614		152,982
FactSet Research Systems Inc.	3,523		149,939
United Defense Industries Inc.1	4,696		149,286
Eon Labs Inc.1	2,212		148,381
Total System Services Inc.	7,041		148,354
Hearst-Argyle Television Inc.	5,513		148,245
Endo Pharmaceuticals Holdings Inc.1	5,980		146,032
Columbia Sportswear Co.1	2,613		144,865
Capitol Federal Financial	3,906		140,225
McDATA Corp. Class A1	19,802		139,406
PanAmSat Corp.1	5,528		135,325
Cox Radio Inc. Class A1	6,325		134,722
BOK Financial Corp.1	3,284		134,644
CONSOL Energy Inc.	4,677		125,344
Regal Entertainment Group Class A	5,695		125,176
Winn-Dixie Stores Inc.	15,995		121,562

SCHEDULES OF INVESTMENTS 19

Schedule of Investments (Continued)

iSHARES^® RUSSELL 1000 INDEX FUND

March 31, 2004

Security	Shares		Value
MSC Industrial Direct Co. Inc. Class A		4,018	$	120,339
Interactive Data Corp.1		6,748		119,979
Blockbuster Inc.		6,805		119,087
CNA Financial Corp.1		4,181		115,228
Southern Peru Copper Corp.		2,738		110,752
Student Loan Corp.		713		110,522
United States Cellular Corp.1		2,858		110,462
Hewitt Associates Inc. Class A1		3,418		109,410
Texas Genco Holdings Inc.		2,968		106,106
Steelcase Inc. Class A		8,141		105,833
LaBranche & Co. Inc.		9,406		105,441
Wesco Financial Corp.		262		101,394
Nuveen Investments Inc. Class A		3,563		99,265
Alliance Data Systems Corp.1		2,813		94,376
RealNetworks Inc.1		15,594		93,564
Chicago Mercantile Exchange Holdings Inc.		926		89,581
West Corp.1		3,460		86,154
Entravision Communications Corp.1		8,285		74,316
LeapFrog Enterprises Inc.1		3,381		65,422
Odyssey Re Holdings Corp.		2,108		56,916
MEMC Electronics Materials Inc.1		3,554		32,519
TOTAL COMMON STOCKS (Cost: $1,881,236,724)				2,082,784,700
SHORT-TERM INVESTMENTS – 7.83%
MONEY MARKET FUNDS – 3.15%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares 2,3		47,238,045		47,238,045
Barclays Global Investors Funds Prime Money Market Fund, Institutional Shares 2,3		14,454,023		14,454,023
BlackRock Temp Cash Money Market Fund2		676,562		676,562
Short-Term Investment Co. – Liquid Assets Money Market Portfolio2		3,369,183		3,369,183
				65,737,813
Security	Principal		Value
FLOATING RATE NOTES – 1.53%
Beta Finance Inc.
1.05%, 05/20/042,4	$	657,001	$	656,988
1.05%, 09/15/042,4		1,314,002		1,313,942
1.06%, 10/12/042,4		657,001		656,966
1.14%, 08/23/042,4		657,001		657,222
CC USA Inc.
1.05%, 04/19/042,4		578,161		578,159
1.06%, 05/24/042,4		1,314,002		1,313,983
1.09%, 07/15/042,4		657,001		657,069
1.51%, 02/15/052,4		854,101		855,290
Dorada Finance Inc.
1.04%, 07/01/042		459,901		458,692
1.05%, 05/20/042,4		1,314,002		1,313,976
1.24%, 08/09/042		328,501		328,483
1.48%, 01/18/052,4		985,502		985,463
Five Finance Inc.
1.06%, 04/15/042,4		657,001		657,001
HBOS Treasury Services PLC
1.10%, 04/22/052		1,314,002		1,314,002
Holmes Financing PLC
1.05%, 04/15/042		131,400		131,400
K2 USA LLC
1.05%, 08/16/042,4		328,501		328,482
1.05%, 09/27/042,4		1,419,122		1,419,018
1.06%, 04/13/042		657,001		657,000
1.06%, 05/17/042		657,001		656,997
1.46%, 01/12/052,4		657,001		656,950
Links Finance LLC
1.05%, 06/28/042		657,001		656,970
1.06%, 05/04/042		657,001		656,998
1.06%, 07/20/042		525,601		525,569
Nationwide Building Society
1.09%, 07/23/042,4		985,502		985,502
1.11%, 12/28/042,4		1,314,002		1,314,002
Northern Rock PLC
1.11%, 01/13/052,4		1,248,302		1,248,302
Permanent Financing PLC
1.04%, 03/10/052		1,314,002		1,314,002
1.05%, 12/10/042		657,001		657,001

20 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 1000 INDEX FUND

March 31, 2004

Security	Principal		Value
Sigma Finance Inc.
1.05%, 07/01/042	$	657,001	$	656,960
1.06%, 07/20/042		657,001		656,961
1.09%, 10/07/042		1,314,002		1,313,866
1.24%, 08/06/042		328,501		328,489
Tango Finance Corp.
1.05%, 01/18/052,4		578,161		578,114
1.06%, 07/15/042,4		394,201		394,163
1.07%, 02/25/052,4		735,841		735,708
1.10%, 07/06/042,4		394,201		394,190
WhistleJacket Capital LLC
1.05%, 09/15/042,4		657,001		656,941
1.32%, 02/04/052,4		328,501		328,445
White Pine Finance LLC
1.04%, 08/26/042,4		657,001		656,960
1.05%, 11/15/042,4		788,401		788,401
1.06%, 04/20/042,4		657,001		657,001
1.06%, 07/06/042,4		788,401		788,381
				31,890,009
COMMERCIAL PAPER – 1.41%
Alpine Securitization Corp.
1.03%, 04/14/042		617,581		617,351
1.03%, 04/20/042		657,001		656,644
1.03%, 04/23/042		775,261		774,773
1.03%, 04/26/042		657,001		656,531
Amsterdam Funding Corp.
1.03%, 05/05/042		532,171		531,653
Barton Capital Corp.
1.03%, 04/02/042		684,713		684,694
Blue Ridge Asset Funding Corp.
1.02%, 04/23/042		394,201		393,955
1.03%, 05/21/042		657,001		656,061
Corporate Asset Funding
1.05%, 05/21/042		683,281		682,289
Corporate Receivables Corp.
1.03%, 04/07/042		657,001		656,888
1.04%, 06/03/042		1,314,002		1,311,611
Delaware Funding Corp.
1.03%, 04/02/042		657,001		656,982
1.03%, 05/05/042		986,592		985,632
1.03%, 05/21/042		328,500		328,031
Edison Asset Securitization
1.07%, 09/21/042		657,001		653,623
Eureka Securitization Inc.
1.03%, 05/25/042		262,800		262,394
1.04%, 04/14/042		788,401		788,105
Falcon Asset Securitization
1.03%, 04/15/042		789,623		789,307
1.03%, 04/22/042		775,261		774,795
1.03%, 04/30/042		657,001		656,456
Galaxy Funding Inc.
1.05%, 05/17/042		657,001		656,124
Gemini Securitization Corp.
1.03%, 04/20/042		394,463		394,249
1.03%, 04/23/042		759,322		758,844
1.03%, 04/30/042		460,466		460,084
1.03%, 05/24/042		328,500		328,002
1.04%, 04/19/042		328,500		328,330
GIRO Funding US Corp.
1.05%, 05/19/042		328,500		328,041
Jupiter Securitization Corp.
1.03%, 04/16/042		1,314,002		1,313,438
1.03%, 04/19/042		1,773,903		1,772,989
1.03%, 04/28/042		788,401		787,792
1.03%, 04/30/042		1,119,201		1,118,273
Liberty Street Funding Corp.
1.04%, 04/08/042		460,374		460,281
1.05%, 04/05/042		532,171		532,109
Polonius Inc.
1.04%, 05/21/042		760,150		759,052
Preferred Receivables Funding Corp.
1.03%, 04/19/042		1,379,702		1,378,992
1.04%, 04/23/042		1,511,102		1,510,142
1.04%, 05/20/042		328,500		328,036
Receivables Capital Corp.
1.04%, 04/14/042		578,161		577,944
Scaldis Capital LLC
1.05%, 06/30/042		470,413		469,178
Thames Asset Global Securitization No. 1 Inc.
1.03%, 04/19/042		657,001		656,663

SCHEDULES OF INVESTMENTS 21

Schedule of Investments (Continued)

iSHARES^® RUSSELL 1000 INDEX FUND

March 31, 2004

Security	Principal		Value
Thunder Bay Funding Inc.
1.03%, 04/19/042	$	417,918	$	417,703
1.04%, 04/29/042		591,826		591,348
				29,445,389
TIME DEPOSITS – 1.21%
Abbey National Treasury Services PLC
1.08%, 04/01/042		4,599,007		4,599,006
1.33%, 02/10/052		657,001		656,916
1.39%, 02/02/052		657,001		656,918
1.40%, 10/25/042		1,314,002		1,313,893
Bank of New York
1.39%, 11/01/042		1,314,002		1,313,925
Bank of Nova Scotia
1.24%, 10/07/042		985,502		985,450
1.42%, 10/29/042		985,502		985,544
Canadian Imperial Bank of Commerce
1.24%, 10/07/042		985,502		985,425
1.38%, 11/22/042		328,501		328,517
1.40%, 10/29/042		1,314,002		1,313,983
National City Bank (Cleveland, Ohio)
1.02%, 04/01/042		1,971,003		1,971,003
Toronto-Dominion Bank
1.04%, 06/22/042		328,501		328,501
1.22%, 03/23/052		2,299,504		2,299,111
1.34%, 02/10/052		525,601		525,533
1.41%, 11/01/042		985,502		985,444
UBS Finance (Delaware)
1.06%, 04/01/042		2,628,004		2,628,004
1.10%, 09/08/042		1,314,001		1,307,578
1.11%, 12/17/042		1,971,001		1,955,202
				25,139,953
REPURCHASE AGREEMENTS – 0.38%
Bank of America, NA
1.06%, 04/01/042		2,628,004		2,628,004
Goldman, Sachs & Co.
1.08%, 04/01/042		5,256,008		5,256,008
				7,884,012
U.S. GOVERNMENT AGENCY NOTES – 0.15%
Federal Home Loan Mortgage Corporation
1.15%, 05/12/042		985,501		984,211
1.28%, 08/19/042		525,601		522,985
Federal National Mortgage Association
1.28%, 08/20/042		1,708,203		1,699,639
				3,206,835
TOTAL SHORT-TERM INVESTMENTS (Cost: $163,304,011)				163,304,011
TOTAL INVESTMENTS IN SECURITIES – 107.74% (Cost: $2,044,540,735)				2,246,088,711
Other Assets, Less Liabilities – (7.74%)				(161,303,237	)
NET ASSETS – 100.00%			$	2,084,785,474

¹ Non-income earning securities.

² All or a portion of this security represents investments of securities lending collateral.

³ Issuer is an affiliate of the Fund’s investment advisor. See Note 2.

⁴ Security exempt from registration under Rule 144A of the Securities Act of 1933.

These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

See notes to financial statements.

22 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® RUSSELL 1000 GROWTH INDEX FUND

March 31, 2004

Security	Shares	Value
COMMON STOCKS – 99.92%
General Electric Co.	3,026,292	$	92,362,432
Pfizer Inc.	2,390,444		83,785,062
Microsoft Corp.	2,708,403		67,628,823
Intel Corp.	1,978,749		53,821,973
Cisco Systems Inc.1	2,125,531		49,992,489
Wal-Mart Stores Inc.	804,861		48,042,153
Johnson & Johnson	899,061		45,600,374
Coca-Cola Co. (The)	553,569		27,844,521
Procter & Gamble Co.	250,532		26,275,796
Home Depot Inc.	694,605		25,950,443
American International Group Inc.	354,493		25,293,076
PepsiCo Inc.	460,972		24,823,342
Dell Inc.1	689,793		23,190,841
Amgen Inc.1	390,492		22,714,920
International Business Machines Corp.	244,668		22,470,309
Fannie Mae	296,710		22,060,388
Lilly (Eli) & Co.	292,241		19,550,923
Abbott Laboratories	472,676		19,426,984
Medtronic Inc.	369,288		17,633,502
3M Co.	209,716		17,169,449
QUALCOMM Inc.	239,028		15,876,240
Texas Instruments Inc.	523,626		15,300,352
Oracle Corp.1	1,173,205		14,090,192
American Express Co.	258,871		13,422,461
Wyeth	354,657		13,317,370
Merck & Co. Inc.	300,104		13,261,596
Lowe’s Companies Inc.	230,213		12,921,856
Anheuser-Busch Companies Inc.	252,636		12,884,436
Target Corp.	275,768		12,420,591
First Data Corp.	280,245		11,815,129
UnitedHealth Group Inc.	179,745		11,582,768
United Parcel Service Inc. Class B	155,366		10,850,761
Applied Materials Inc.1	501,160		10,714,801
Walgreen Co.	310,314		10,224,846
EMC Corp.1	714,425		9,723,324
Cardinal Health Inc.	135,167		9,313,006
eBay Inc.1	127,026		8,806,713
Fifth Third Bancorp	151,783		8,404,225
Boston Scientific Corp.1	194,970		8,262,829
Comcast Corp. Class A1	285,229		8,197,481
Boeing Co. (The)	198,823		8,165,661
Colgate-Palmolive Co.	145,305		8,006,305
Yahoo! Inc.1	162,712		7,906,176
Altria Group Inc.	144,063		7,844,230
Sysco Corp.	196,677		7,680,237
Marsh & McLennan Companies Inc.	162,101		7,505,276
Gillette Co. (The)	190,742		7,458,012
Forest Laboratories Inc.1	103,309		7,398,991
Viacom Inc. Class B	185,210		7,262,084
Automatic Data Processing Inc.	170,909		7,178,178
Bristol-Myers Squibb Co.	293,995		7,123,499
MBNA Corp.	241,725		6,678,862
Genentech Inc.1	62,088		6,570,152
Nextel Communications Inc. Class A1	264,079		6,530,674
Guidant Corp.	93,634		5,933,587
Baxter International Inc.	180,866		5,586,951
Zimmer Holdings Inc.1	73,219		5,402,098
United Technologies Corp.	62,509		5,394,527
Analog Devices Inc.	110,582		5,309,042
SLM Corp.	124,702		5,218,779
Progressive Corp. (The)	59,030		5,171,028
Motorola Inc.	286,695		5,045,832
Biogen Idec Inc.1	88,662		4,929,607
Harley-Davidson Inc.	91,575		4,884,610
WellPoint Health Networks Inc.1	42,051		4,782,040
HCA Inc.	117,470		4,771,631
International Game Technology Inc.	103,468		4,651,921
Maxim Integrated Products Inc.	98,267		4,627,393
Omnicom Group Inc.	57,129		4,584,602
Starbucks Corp.1	118,207		4,462,314
Symantec Corp.1	94,387		4,370,118
Gap Inc. (The)	199,276		4,368,130
Kohls Corp.1	86,691		4,189,776
AT&T Wireless Services Inc.1	303,238		4,127,069
Best Buy Co. Inc.	79,050		4,088,466
Caremark Rx Inc.1	121,261		4,031,913
Illinois Tool Works Inc.	50,810		4,025,676
AFLAC Inc.	98,709		3,962,179
St. Jude Medical Inc.1	54,504		3,929,738
Walt Disney Co. (The)	156,568		3,912,634

SCHEDULES OF INVESTMENTS 23

Schedule of Investments (Continued)

iSHARES^® RUSSELL 1000 GROWTH INDEX FUND

March 31, 2004

Security	Shares	Value
Xilinx Inc.1	102,171	$	3,882,498
Nike Inc. Class B	49,722		3,871,852
Staples Inc.1	150,432		3,819,468
McGraw-Hill Companies Inc. (The)	50,163		3,819,411
TJX Companies Inc.	155,428		3,817,312
Bed Bath & Beyond Inc.1	89,443		3,735,140
Schwab (Charles) Corp. (The)	319,587		3,710,405
Stryker Corp.	41,865		3,706,308
Electronic Arts Inc.1	67,992		3,668,848
Halliburton Co.	120,117		3,650,356
Gilead Sciences Inc.1	64,374		3,590,138
Paychex Inc.	99,889		3,556,048
Linear Technology Corp.	94,716		3,506,386
Newmont Mining Corp.	74,067		3,453,744
Capital One Financial Corp.	45,352		3,420,901
Veritas Software Corp.1	125,559		3,378,793
Yum! Brands Inc.1	88,617		3,366,560
Apollo Group Inc. Class A1	39,038		3,361,562
Allergan Inc.	39,521		3,326,087
Lexmark International Inc.1	35,721		3,286,332
Liberty Media Corp. Class A1	297,782		3,260,713
Clear Channel Communications Inc.	73,789		3,124,964
Danaher Corp.	32,444		3,029,296
Waste Management Inc.	99,241		2,995,093
Biomet Inc.	78,075		2,994,957
InterActiveCorp1	94,601		2,988,446
Becton, Dickinson & Co.	61,195		2,966,734
Kimberly-Clark Corp.	46,844		2,955,856
Computer Associates International Inc.	109,805		2,949,362
KLA-Tencor Corp.1	57,594		2,899,858
Amazon.com Inc.1	66,637		2,884,049
Baker Hughes Inc.	78,482		2,863,023
Freddie Mac	47,986		2,834,053
Adobe Systems Inc.	70,149		2,765,975
Block (H & R) Inc.	54,188		2,765,214
Genzyme Corp. – General Division1	58,202		2,737,822
General Mills Inc.	57,615		2,689,468
Moody’s Corp.	37,784		2,675,107
Juniper Networks Inc.1	101,076		2,628,987
FedEx Corp.	34,735		2,610,683
Broadcom Corp. Class A1	65,825		2,578,365
Intuit Inc.1	55,861		2,507,042
Mattel Inc.	133,131		2,454,936
Wrigley (William Jr.) Co.	40,749		2,409,081
Altera Corp.1	115,989		2,371,975
Corning Inc.1	206,578		2,309,542
Coach Inc.1	55,051		2,256,540
EchoStar Communications Corp.1	68,820		2,253,855
SunGard Data Systems Inc.1	80,058		2,193,589
Sprint Corp. (PCS Group)1	237,172		2,181,982
Southwest Airlines Co.	151,919		2,158,769
Sara Lee Corp.	96,607		2,111,829
American Standard Companies Inc.1	18,499		2,104,261
National Semiconductor Corp.1	46,797		2,079,191
Synovus Financial Corp.	84,033		2,054,607
Pitney Bowes Inc.	47,715		2,033,136
ITT Industries Inc.	26,167		1,997,327
Costco Wholesale Corp.1	52,949		1,988,764
Fiserv Inc.1	55,433		1,982,838
Network Appliance Inc.1	91,331		1,959,050
BJ Services Co.1	44,883		1,942,087
Mylan Laboratories Inc.	82,189		1,868,156
Quest Diagnostics Inc.	22,007		1,822,840
Freeport-McMoRan Copper & Gold Inc.	46,321		1,810,688
Avery Dennison Corp.	28,993		1,803,655
Varian Medical Systems Inc.1	20,716		1,787,998
Mellon Financial Corp.	56,558		1,769,700
Wells Fargo & Company	31,113		1,763,174
MedImmune Inc.1	76,232		1,759,435
IMS Health Inc.	73,949		1,720,054
Cendant Corp.	70,476		1,718,910
Anadarko Petroleum Corp.	33,132		1,718,226
RadioShack Corp.	51,165		1,696,631
DIRECTV Group Inc. (The)1	109,907		1,690,370
Health Management Associates Inc. Class A	72,598		1,685,000
JDS Uniphase Corp.1	408,144		1,661,146
Dollar General Corp.	86,334		1,657,613
Heinz (H.J.) Co.	44,305		1,652,133
Ecolab Inc.	57,495		1,640,332

24 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 1000 GROWTH INDEX FUND

March 31, 2004

Security	Shares	Value
AutoZone Inc.1	19,074	$	1,639,792
Family Dollar Stores Inc.	45,604		1,639,464
Career Education Corp.1	28,929		1,638,539
Microchip Technology Inc.	61,606		1,636,255
Laboratory Corp. of America Holdings1	41,389		1,624,518
EOG Resources Inc.	34,764		1,595,320
Cintas Corp.	36,379		1,582,123
Morgan Stanley	27,213		1,559,305
Agere Systems Inc. Class B1	495,502		1,545,966
Legg Mason Inc.	16,657		1,545,436
Waters Corp.1	37,689		1,539,219
Affiliated Computer Services Inc. Class A1	29,464		1,529,182
Aetna Inc.	17,043		1,529,098
Anthem Inc.1	16,504		1,495,923
Kinder Morgan Inc.	23,303		1,468,555
Marriott International Inc. Class A	33,896		1,442,275
Kellogg Co.	36,631		1,437,400
Ross Stores Inc.	46,809		1,432,823
McKesson Corp.	47,610		1,432,585
BEA Systems Inc.1	111,568		1,423,608
Express Scripts Inc.1	18,753		1,398,786
Univision Communications Inc. Class A1	42,002		1,386,486
Bard (C.R.) Inc.	14,148		1,381,411
Du Pont (E.I.) de Nemours and Co.	32,509		1,372,530
Masco Corp.	44,498		1,354,519
Black & Decker Corp.	23,544		1,340,595
Teradyne Inc.1	55,790		1,329,476
New York Community Bancorp Inc.	38,772		1,329,104
Clorox Co.	26,228		1,282,811
Estee Lauder Companies Inc. Class A	28,917		1,282,180
Tiffany & Co.	33,516		1,279,306
Lockheed Martin Corp.	27,925		1,274,497
Sealed Air Corp.1	25,503		1,268,264
Patterson Dental Co.1	18,405		1,262,767
Micron Technology Inc.1	74,891		1,251,429
BMC Software Inc.1	63,803		1,247,349
Oxford Health Plans Inc.	25,335		1,237,615
Hershey Foods Corp.	14,934		1,237,282
Jabil Circuit Inc.1	42,025		1,236,796
Medco Health Solutions Inc.1	36,331		1,235,254
Newell Rubbermaid Inc.	53,234		1,235,029
Emerson Electric Co.	20,604		1,234,592
New York Times Co. Class A	27,922		1,234,152
Harman International Industries Inc.	15,468		1,231,253
Pepsi Bottling Group Inc.	40,905		1,216,924
Synopsys Inc.1	41,845		1,211,831
Chico’s FAS Inc.1	26,104		1,211,226
CDW Corp.	17,899		1,210,151
Dun & Bradstreet Corp.1	22,613		1,209,795
NVIDIA Corp.1	45,359		1,201,560
Chiron Corp.1	27,221		1,197,996
T. Rowe Price Group Inc.	22,254		1,197,933
Commerce Bancorp Inc.	18,006		1,186,235
SanDisk Corp.1	41,588		1,179,852
Novellus Systems Inc.1	37,037		1,177,406
Bank of New York Co. Inc. (The)	37,169		1,170,823
Celgene Corp.1	24,394		1,162,374
PETsMART Inc.	42,626		1,161,985
Expeditors International Washington Inc.	29,374		1,159,979
Whole Foods Market Inc.	15,476		1,159,926
Harrah’s Entertainment Inc.	20,898		1,147,091
Sepracor Inc.1	23,680		1,139,008
Dow Chemical Co. (The)	27,876		1,122,845
Praxair Inc.	29,966		1,112,338
Brinker International Inc.1	29,305		1,111,539
Smith International Inc.1	20,479		1,095,831
AES Corp. (The)1	126,919		1,082,619
Citrix Systems Inc.1	49,783		1,076,308
Ameritrade Holding Corp.1	69,818		1,075,197
Applera Corp. – Applied Biosystems Group	53,877		1,065,687
Dollar Tree Stores Inc.1	34,473		1,064,871
Robert Half International Inc.1	44,735		1,056,641
Mercury Interactive Corp.1	23,585		1,056,608
DENTSPLY International Inc.	23,721		1,051,552
Molex Inc.	34,276		1,041,648
Darden Restaurants Inc.	41,904		1,038,800

SCHEDULES OF INVESTMENTS 25

Schedule of Investments (Continued)

iSHARES^® RUSSELL 1000 GROWTH INDEX FUND

March 31, 2004

Security	Shares	Value
Lam Research Corp.1	40,422	$	1,019,039
Beckman Coulter Inc.	18,484		1,008,117
Gentex Corp.	23,063		1,000,473
Ball Corp.	14,592		989,046
DST Systems Inc.1	21,803		988,766
Unisys Corp.1	68,364		976,238
Fastenal Co.	18,073		970,339
Barr Pharmaceuticals Inc.1	20,883		958,530
AmerisourceBergen Corp.	17,490		956,353
ChoicePoint Inc.1	24,997		950,636
Scripps (E.W.) Co. Class A	9,355		945,884
IVAX Corp.1	41,458		943,999
Abercrombie & Fitch Co. Class A	27,841		942,139
QLogic Corp.1	28,360		936,164
Phelps Dodge Corp.1	11,317		924,146
XTO Energy Inc.	36,536		922,175
CarMax Inc.1	31,481		919,245
Doral Financial Corp.	26,003		915,306
McCormick & Co. Inc.	27,250		913,420
Equifax Inc.	34,479		890,248
CH Robinson Worldwide Inc.	21,332		885,278
Gallagher (Arthur J.) & Co.	27,137		883,852
Lincare Holdings Inc.1	28,082		882,336
Coventry Health Care Inc.1	20,769		879,152
Red Hat Inc.1	38,349		876,658
Cephalon Inc.1	15,222		872,373
Corinthian Colleges Inc.1	26,370		871,792
DaVita Inc.1	18,244		871,151
Iron Mountain Inc.1	19,501		870,330
Williams-Sonoma Inc.1	25,383		868,099
PMC-Sierra Inc.1	51,013		865,691
Patterson-UTI Energy Inc.1	24,375		863,119
Rockwell Collins Inc.	27,155		858,370
Manpower Inc.	18,191		845,881
Avon Products Inc.	11,108		842,764
Cognizant Technology Solutions Corp.1	18,587		841,062
Symbol Technologies Inc.	60,806		839,123
GTECH Holdings Corp.	14,149		836,772
Campbell Soup Co.	30,619		834,980
Hilton Hotels Corp.	50,949		827,921
Siebel Systems Inc.1	71,839		826,867
Investors Financial Services Corp.	19,805		818,343
Michaels Stores Inc.	16,649		809,474
Eaton Vance Corp.	20,821		793,697
ImClone Systems Inc.1	15,602		793,518
Monster Worldwide Inc.1	29,944		784,533
Fisher Scientific International Inc.1	14,172		780,027
Zebra Technologies Corp. Class A1	11,122		771,533
Network Associates Inc.1	42,516		765,288
Westwood One Inc.1	25,751		758,367
Sanmina-SCI Corp.1	68,647		755,803
Maytag Corp.	23,897		754,428
SEI Investment Co.	22,405		739,365
VeriSign Inc.1	44,259		734,257
L-3 Communications Holdings Inc.	12,315		732,496
PeopleSoft Inc.1	39,208		724,956
Rambus Inc.1	25,802		723,230
Fair Isaac Corp.	19,930		719,074
Millipore Corp.1	13,894		713,874
Federated Investors Inc. Class B	22,570		709,375
Centex Corp.	12,986		702,023
Lamar Advertising Co.1	17,398		699,748
NVR Inc.1	1,510		694,600
WebMD Corp.1	77,886		692,407
Applebee’s International Inc.	16,740		692,199
UTStarcom Inc.1	23,990		689,952
Chesapeake Energy Corp.	51,386		688,572
NetScreen Technologies Inc.1	18,827		685,868
JetBlue Airways Corp.1	27,111		685,637
Millennium Pharmaceuticals Inc.1	40,520		684,788
Outback Steakhouse Inc.	13,987		681,167
E*TRADE Financial Corp.1	50,289		671,358
Western Digital Corp.1	59,461		667,747
Amylin Pharmaceuticals Inc.1	27,882		660,525
TCF Financial Corp.	12,791		653,236
Cheesecake Factory (The)1	14,132		651,909
Cox Communications Inc. Class A1	20,187		637,909
Pall Corp.	27,813		631,077
Krispy Kreme Doughnuts Inc.1	18,351		630,173
Medicis Pharmaceutical Corp. Class A	15,628		625,120

26 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 1000 GROWTH INDEX FUND

March 31, 2004

Security	Shares	Value
Universal Health Services Inc. Class B	13,552	$	624,341
Fox Entertainment Group Inc. Class A1	22,882		620,102
Omnicare Inc.	13,884		615,478
Education Management Corp.1	19,336		615,465
Rent-A-Center Inc.1	18,349		605,334
Graco Inc.	20,789		605,153
Advanced Micro Devices Inc.1	37,181		603,448
Affymetrix Inc.1	17,871		603,146
Starwood Hotels & Resorts Worldwide Inc.	14,788		598,914
Polaris Industries Inc.	13,140		597,082
Dow Jones & Co. Inc.	12,459		596,911
First Health Group Corp.1	27,174		594,024
Herman Miller Inc.	22,293		593,663
Advance Auto Parts Inc.1	14,593		593,497
Pactiv Corp.1	26,602		591,894
Charles River Laboratories International Inc.1	13,798		591,244
Ruby Tuesday Inc.	18,365		590,435
ARAMARK Corp. Class B	21,476		588,657
Pharmaceutical Resources Inc.1	10,294		585,317
Solectron Corp.1	105,433		583,044
Edwards Lifesciences Corp.1	18,245		582,928
Certegy Inc.	16,570		580,281
Brown & Brown Inc.	14,892		577,214
Cooper Cameron Corp.1	13,095		576,835
Reynolds & Reynolds Co. (The) Class A	20,277		576,070
Lehman Brothers Holdings Inc.	6,937		574,869
Novell Inc.1	49,517		563,503
Foundry Networks Inc.1	32,663		560,824
State Street Corp.	10,687		557,113
Henry Schein Inc.1	7,794		556,647
Jacobs Engineering Group Inc.1	12,478		556,519
Respironics Inc.1	10,251		553,759
Waddell & Reed Financial Inc. Class A	22,430		549,984
IDEXX Laboratories Inc.1	9,657		549,194
Rite Aid Corp.1	99,516		541,367
BISYS Group Inc. (The)1	32,236		540,275
Getty Images Inc.1	10,003		539,962
Corporate Executive Board Co. (The)	11,472		539,184
Sigma-Aldrich Corp.	9,664		534,806
Donaldson Co. Inc.	20,148		534,526
Weight Watchers International Inc.1	12,616		533,278
Tribune Co.	10,495		529,368
Autoliv Inc.	12,811		525,251
DeVry Inc.1	17,339		522,771
Xerox Corp.1	35,789		521,446
Health Net Inc.1	20,832		519,342
North Fork Bancorp Inc.	12,261		518,886
Leggett & Platt Inc.	21,458		508,769
Steris Corp.1	19,680		507,744
Station Casinos Inc.	11,494		507,690
Friedman, Billings, Ramsey Group, Inc. Class A	18,749		506,036
Stericycle Inc.1	10,565		505,641
Popular Inc.	11,718		505,046
Pier 1 Imports Inc.	21,017		498,103
Cree Inc.1	22,249		496,153
Alliant Techsystems Inc.1	9,079		493,898
Protein Design Labs Inc.1	20,705		493,193
Silicon Laboratories Inc.1	9,133		482,953
Cablevision Systems Corp.1	20,974		479,885
Entercom Communications Corp.1	10,410		471,261
FMC Technologies Inc.1	17,427		471,052
Mettler Toledo International Inc.1	10,609		471,040
Mandalay Resort Group	8,224		470,906
Claire’s Stores Inc.	22,482		468,525
ENSCO International Inc.	16,576		466,946
International Flavors & Fragrances Inc.	13,072		464,056
Apria Healthcare Group Inc.1	15,452		462,633
Andrx Group1	16,845		458,184
Dover Corp.	11,813		457,990
Integrated Circuit Systems Inc.1	18,289		457,774
ResMed Inc.1	10,093		456,103
Comverse Technology Inc.1	24,329		441,328
Navistar International Corp.1	9,560		438,326
Grant Prideco Inc.1	28,198		437,069
Pixar Inc.1	6,774		436,652

SCHEDULES OF INVESTMENTS 27

Schedule of Investments (Continued)

iSHARES^® RUSSELL 1000 GROWTH INDEX FUND

March 31, 2004

Security	Shares	Value
National Instruments Corp.	13,859	$	436,004
Wiley (John) & Sons Inc. Class A	14,559		435,751
Tellabs Inc.1	50,471		435,565
Pharmaceutical Product Development Inc.1	14,579		434,308
Providian Financial Corp.1	32,922		431,278
International Rectifier Corp.1	9,361		430,512
Cypress Semiconductor Corp.1	20,984		429,542
Ceridian Corp.1	21,785		429,382
Coca-Cola Enterprises Inc.	17,686		427,471
Allied Waste Industries Inc.1	31,699		421,914
Qwest Communications International Inc.1	95,850		413,113
Macromedia Inc.1	20,454		410,512
Intersil Corp. Class A	18,391		409,935
Amkor Technology Inc.1	28,008		409,757
Mohawk Industries Inc.1	4,933		406,233
University of Phoenix Online1	4,616		401,684
ITT Educational Services Inc.1	12,842		400,670
O’Reilly Automotive Inc.1	9,895		396,196
National-Oilwell Inc.1	13,986		395,524
Henry (Jack) & Associates Inc.	20,426		393,405
St. Joe Company (The)	9,656		392,903
Emulex Corp.1	18,047		384,221
Avocent Corp.1	10,309		379,268
Renal Care Group Inc.1	8,112		371,205
LSI Logic Corp.1	39,584		369,715
Storage Technology Corp.1	13,122		365,185
CIENA Corp.1	73,475		365,171
ADTRAN Inc.	12,086		362,943
Atmel Corp.1	55,477		360,600
Harte-Hanks Inc.	15,252		357,202
Whirlpool Corp.	5,171		356,127
Telephone & Data Systems Inc.	5,000		354,350
Global Payments Inc.	7,812		352,165
Washington Post Company (The) Class B	395		349,342
Amphenol Corp. Class A1	11,754		349,094
Hillenbrand Industries Inc.	5,101		346,307
SouthTrust Corp.	10,401		344,897
International Speedway Corp. Class A	7,311		343,617
King Pharmaceuticals Inc.1	20,375		343,115
Varco International Inc.1	18,870		339,849
BlackRock Inc.	5,530		338,270
Rowan Companies Inc.1	15,811		333,454
Noble Energy Inc.	7,018		330,548
CBRL Group Inc.	8,329		330,162
Church & Dwight Co. Inc.	7,473		323,656
Timberland Co. Class A1	5,440		323,408
Performance Food Group Co.1	9,312		319,867
Triad Hospitals Inc.1	10,355		319,141
Key Energy Services Inc.1	29,007		319,077
American Tower Corp. Class A1	28,106		319,003
Viad Corp.	13,043		315,249
ADC Telecommunications Inc.1	108,616		314,985
Brocade Communications Systems Inc.1	46,991		312,960
Hudson City Bancorp Inc.	8,163		308,888
Cadence Design Systems Inc.1	20,937		308,611
Harris Corp.	6,286		304,305
Regis Corp.	6,827		303,392
Newfield Exploration Co.1	6,260		300,042
Nextel Partners Inc. Class A1	23,699		300,029
Meredith Corp.	5,836		295,068
Acxiom Corp.	13,423		294,769
Del Monte Foods Co.1	26,200		294,750
Bio-Rad Laboratories Inc. Class A1	5,219		294,195
PerkinElmer Inc.	14,200		293,798
99 Cents Only Stores1	11,993		292,869
Thermo Electron Corp.1	10,350		292,698
InterDigital Communications Corp.1	16,643		290,920
MGM Mirage1	6,373		288,952
Tenet Healthcare Corp.1	25,671		286,488
Fairchild Semiconductor International Inc. Class A1	11,915		286,317
Marvel Enterprises Inc.1	14,783		283,676
Energizer Holdings Inc.1	6,075		283,642
HON Industries Inc.	7,588		281,970
CheckFree Corp.1	9,499		279,841
Markel Corp.1	959		276,096

28 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 1000 GROWTH INDEX FUND

March 31, 2004

Security	Shares	Value
Invitrogen Corp.1	3,822	$	273,999
American Pharmaceutical Partners Inc.1	5,647		265,070
DoubleClick Inc.1	23,090		259,762
Polycom Inc.1	12,067		256,182
ICOS Corp.1	6,865		254,348
Pride International Inc.1	14,808		252,624
First Bancorp	6,062		252,179
Neurocrine Biosciences Inc.1	4,189		247,570
Human Genome Sciences Inc.1	19,441		243,596
Knight Ridder Inc.	3,315		242,824
HCC Insurance Holdings Inc.	7,483		241,925
Agilent Technologies Inc.1	7,647		241,875
FactSet Research Systems Inc.	5,666		241,145
Big Lots Inc.1	16,595		240,627
Total System Services Inc.	11,261		237,269
AmeriCredit Corp.1	13,888		236,513
United Defense Industries Inc.1	7,389		234,896
Endo Pharmaceuticals Holdings Inc.1	9,588		234,139
Advanced Fibre Communications Inc.1	10,610		233,738
Applied Micro Circuits Corp.1	40,552		233,174
Lennar Corp. Class A	4,222		228,115
Columbia Sportswear Co.1	4,055		224,809
Eon Labs Inc.1	3,349		224,651
Edwards (A.G.) Inc.	5,629		220,206
Tidewater Inc.	7,759		218,261
Talbots Inc. (The)	6,094		218,043
McDATA Corp. Class A1	30,743		216,431
Chelsea Property Group Inc.	3,305		208,017
Hunt (J.B.) Transport Services Inc.1	7,205		202,965
Valeant Pharmaceuticals International	8,474		202,274
Northern Trust Corp.	4,341		202,247
Wendy’s International Inc.	4,945		201,212
Community Health Systems Inc.1	7,225		201,072
Constellation Brands Inc.1	6,213		199,437
Radio One Inc. Class D1	10,723		198,376
Integrated Device Technology Inc.1	12,769		191,535
SPX Corp.	4,187		190,425
Belo (A.H.) Corp.	6,828		189,545
AMETEK Inc.	7,371		188,992
CONSOL Energy Inc.	6,923		185,536
Maxtor Corp.1	22,393		182,503
Diamond Offshore Drilling Inc.	7,509		181,643
D.R. Horton Inc.	5,097		180,587
Swift Transportation Co. Inc.1	10,408		178,705
Valley National Bancorp	6,333		177,134
Watson Pharmaceuticals Inc.1	4,116		176,124
Worthington Industries Inc.	9,168		175,751
Mills Corp.	3,254		173,406
Manor Care Inc.	4,844		170,945
Hewitt Associates Inc. Class A1	5,320		170,293
Arrow Electronics Inc.1	6,633		168,876
MSC Industrial Direct Co. Inc. Class A	5,537		165,833
Hovnanian Enterprises Inc. Class A1	3,780		163,107
Nuveen Investments Inc. Class A	5,761		160,501
Alliance Data Systems Corp.1	4,759		159,664
Tektronix Inc.	4,696		153,606
Crown Castle International Corp.1	11,739		148,264
RealNetworks Inc.1	24,207		145,242
IDT Corp.1	7,032		139,726
West Corp.1	5,570		138,693
Pioneer Natural Resources Co.	4,194		135,466
Brown-Forman Corp. Class B	2,798		133,353
Fidelity National Financial Inc.	3,321		131,512
Chicago Mercantile Exchange Holdings Inc.	1,355		131,083
Timken Co. (The)	5,629		130,762
Westamerica Bancorp	2,590		130,691
Wynn Resorts Ltd.1	3,722		130,270
BearingPoint Inc.1	11,874		127,289
Cox Radio Inc. Class A1	5,842		124,435
Leucadia National Corp.	2,331		124,196
Borders Group Inc.	4,888		116,041
Ambac Financial Group Inc.	1,572		115,982
Werner Enterprises Inc.	6,079		115,197
Radian Group Inc.	2,682		114,253

SCHEDULES OF INVESTMENTS 29

Schedule of Investments (Continued)

iSHARES^® RUSSELL 1000 GROWTH INDEX FUND

March 31, 2004

Security	Shares		Value
Reebok International Ltd.		2,736	$	113,134
Cousins Properties Inc.		3,274		107,354
LeapFrog Enterprises Inc.1		5,403		104,548
Interpublic Group of Companies Inc.1		6,767		104,076
Pentair Inc.		1,708		100,772
First Tennessee National Corp.		2,093		99,836
Mercantile Bankshares Corp.		2,304		99,003
Convergys Corp.1		5,735		87,172
Interactive Data Corp.1		4,784		85,060
Southern Peru Copper Corp.		2,058		83,246
Delphi Corp.		8,224		81,911
Alberto-Culver Co.		1,804		79,142
Westport Resources Corp.1		2,319		76,504
Vulcan Materials Co.		1,505		71,397
Florida Rock Industries Inc.		1,690		71,234
United States Cellular Corp.1		1,811		69,995
Scotts Co. (The) Class A1		1,072		68,769
Barnes & Noble Inc.1		2,099		68,427
Autodesk Inc.		2,072		65,517
LNR Property Corp.		1,216		65,092
Fluor Corp.		1,499		57,996
Bausch & Lomb Inc.		929		55,712
MEMC Electronics Materials Inc.1		5,794		53,015
Blockbuster Inc.		2,932		51,310
Entravision Communications Corp.1		5,474		49,102
Hudson United Bancorp		1,290		49,084
Compuware Corp.1		6,545		48,760
Apogent Technologies Inc.1		1,562		47,922
Jefferies Group Inc.		1,281		45,258
LaBranche & Co. Inc.		4,036		45,244
IndyMac Bancorp Inc.		1,230		44,637
Transatlantic Holdings Inc.		505		44,041
Valspar Corp. (The)		886		43,618
Berkley (W.R.) Corp.		1,024		40,837
Gemstar-TV Guide International Inc.1		5,789		38,844
Cabot Corp.		1,148		37,654
UnitedGlobalCom Inc. Class A1		4,203		35,683
WellChoice Inc.1		945		34,871
Tootsie Roll Industries Inc.		928		33,921
Security	Shares or Principal		Value
La-Z-Boy Inc.		1,264	$	27,505
Erie Indemnity Co. Class A		536		25,867
Polo Ralph Lauren Corp.		600		20,568
Scholastic Corp.1		537		14,633
TOTAL COMMON STOCKS (Cost: $1,599,691,820)				1,644,798,789
SHORT-TERM INVESTMENTS – 7.37%
MONEY MARKET FUNDS – 2.88%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares2,3		33,499,363		33,499,363
Barclays Global Investors Funds Prime Money Market Fund, Institutional Shares2,3		10,936,013		10,936,013
BlackRock Temp Cash Money Market Fund2		511,891		511,891
Short-Term Investment Co. – Liquid Assets Money Market Portfolio2		2,549,147		2,549,147
				47,496,414
FLOATING RATE NOTES – 1.47%
Beta Finance Inc.
1.05%, 05/20/042,4	$	497,091		497,082
1.05%, 09/15/042,4		994,183		994,138
1.06%, 10/12/042,4		497,091		497,065
1.14%, 08/23/042,4		497,091		497,259
CC USA Inc.
1.05%, 04/19/042,4		437,441		437,439
1.06%, 05/24/042,4		994,183		994,169
1.09%, 07/15/042,4		497,092		497,143
1.51%, 02/15/052,4		646,219		647,118
Dorada Finance Inc.
1.04%, 07/01/042		347,964		347,049
1.05%, 05/20/042,4		994,183		994,163
1.24%, 08/09/042		248,546		248,532
1.48%, 01/18/052,4		745,637		745,608
Five Finance Inc.
1.06%, 04/15/042,4		497,091		497,091
HBOS Treasury Services PLC
1.10%, 04/22/052		994,183		994,183

30 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 1000 GROWTH INDEX FUND

March 31, 2004

Security	Principal		Value
Holmes Financing PLC
1.05%, 04/15/042	$	99,418	$	99,418
K2 USA LLC
1.05%, 08/16/042,4		248,546		248,532
1.05%, 09/27/042,4		1,073,718		1,073,639
1.06%, 04/13/042		497,091		497,091
1.06%, 05/17/042		497,091		497,088
1.46%, 01/12/052,4		497,091		497,053
Links Finance LLC
1.05%, 06/28/042		497,091		497,068
1.06%, 05/04/042		497,091		497,089
1.06%, 07/20/042		397,673		397,649
Nationwide Building Society
1.09%, 07/23/042,4		745,637		745,637
1.11%, 12/28/042,4		994,183		994,183
Northern Rock PLC
1.11%, 01/13/052,4		944,474		944,474
Permanent Financing PLC
1.04%, 03/10/052		994,183		994,183
1.05%, 12/10/042		497,091		497,091
Sigma Finance Inc.
1.05%, 07/01/042		497,091		497,061
1.06%, 07/20/042		497,091		497,062
1.09%, 10/07/042		994,183		994,080
1.24%, 08/06/042		248,546		248,537
Tango Finance Corp.
1.05%, 01/18/052,4		437,441		437,405
1.06%, 07/15/042,4		298,255		298,227
1.07%, 02/25/052,4		556,742		556,642
1.10%, 07/06/042,4		298,255		298,247
WhistleJacket Capital LLC
1.05%, 09/15/042,4		497,091		497,046
1.32%, 02/04/052,4		248,546		248,504
White Pine Finance LLC
1.04%, 08/26/042,4		497,091		497,061
1.05%, 11/15/042,4		596,510		596,510
1.06%, 04/20/042,4		497,091		497,091
1.06%, 07/06/042,4		596,510		596,495
				24,128,202
COMMERCIAL PAPER – 1.35%
Alpine Securitization Corp.
1.03%, 04/14/042		467,266		467,092
1.03%, 04/20/042		497,091		496,821
1.03%, 04/23/042		586,568		586,199
1.03%, 04/26/042		497,091		496,736
Amsterdam Funding Corp.
1.03%, 05/05/042		402,644		402,252
Barton Capital Corp.
1.03%, 04/02/042		518,059		518,044
Blue Ridge Asset Funding Corp.
1.02%, 04/23/042		298,255		298,069
1.03%, 05/21/042		497,091		496,380
Corporate Asset Funding
1.05%, 05/21/042		516,975		516,225
Corporate Receivables Corp.
1.03%, 04/07/042		497,091		497,006
1.04%, 06/03/042		994,183		992,374
Delaware Funding Corp.
1.03%, 04/02/042		497,091		497,077
1.03%, 05/05/042		746,462		745,736
1.03%, 05/21/042		248,546		248,190
Edison Asset Securitization
1.07%, 09/21/042		497,091		494,535
Eureka Securitization Inc.
1.03%, 05/25/042		198,837		198,529
1.04%, 04/14/042		596,510		596,286
Falcon Asset Securitization
1.03%, 04/15/042		597,434		597,195
1.03%, 04/22/042		586,568		586,216
1.03%, 04/30/042		497,091		496,679
Galaxy Funding Inc.
1.05%, 05/17/042		497,091		496,428
Gemini Securitization Corp.
1.03%, 04/20/042		298,454		298,291
1.03%, 04/23/042		574,508		574,147
1.03%, 04/30/042		348,392		348,102
1.03%, 05/24/042		248,546		248,169
1.04%, 04/19/042		248,546		248,417
GIRO Funding US Corp.
1.05%, 05/19/042		248,546		248,198

SCHEDULES OF INVESTMENTS 31

Schedule of Investments (Continued)

iSHARES^® RUSSELL 1000 GROWTH INDEX FUND

March 31, 2004

Security	Principal		Value
Jupiter Securitization Corp
1.03%, 04/16/042	$	994,183	$	993,756
1.03%, 04/19/042		1,342,147		1,341,456
1.03%, 04/28/042		596,510		596,049
1.03%, 04/30/042		846,795		846,093
Liberty Street Funding Corp.
1.04%, 04/08/042		348,322		348,252
1.05%, 04/05/042		402,644		402,597
Polonius Inc.
1.04%, 05/21/042		575,135		574,305
Preferred Receivables Funding Corp.
1.03%, 04/19/042		1,043,892		1,043,355
1.04%, 04/23/042		1,143,310		1,142,584
1.04%, 05/20/042		248,546		248,194
Receivables Capital Corp.
1.04%, 04/14/042		437,440		437,276
Scaldis Capital LLC
1.05%, 06/30/042		355,917		354,983
Thames Asset Global Securitization No. 1 Inc.
1.03%, 04/19/042		497,091		496,835
Thunder Bay Funding Inc.
1.03%, 04/19/042		316,200		316,037
1.04%, 04/29/042		447,780		447,418
				22,278,583
TIME DEPOSITS – 1.16%
Abbey National Treasury Services PLC
1.08%, 04/01/042		3,479,640		3,479,640
1.33%, 02/10/052		497,091		497,027
1.39%, 02/02/052		497,091		497,029
1.40%, 10/25/042		994,183		994,097
Bank of New York
1.39%, 11/01/042		994,183		994,125
Bank of Nova Scotia
1.24%, 10/07/042		745,637		745,599
1.42%, 10/29/042		745,637		745,670
Canadian Imperial Bank of Commerce
1.24%, 10/07/042		745,637		745,579
1.38%, 11/22/042		248,546		248,558
1.40%, 10/29/042		994,183		994,169
National City Bank (Cleveland, Ohio)
1.02%, 04/01/042		1,491,274		1,491,274
Toronto-Dominion Bank
1.04%, 06/22/042		248,546		248,546
1.22%, 03/23/052		1,739,820		1,739,523
1.34%, 02/10/052		397,673		397,622
1.41%, 11/01/042		745,637		745,594
UBS Finance (Delaware)
1.06%, 04/01/042		1,988,366		1,988,366
1.10%, 09/08/042		994,182		989,323
1.11%, 12/17/042		1,491,273		1,479,319
				19,021,060
REPURCHASE AGREEMENTS – 0.36%
Bank of America, NA
1.06%, 04/01/042		1,988,366		1,988,366
Goldman, Sachs & Co.
1.08%, 04/01/042		3,976,732		3,976,732
				5,965,098
U.S. GOVERNMENT AGENCY NOTES – 0.15%
Federal Home Loan Mortgage Corporation
1.15%, 05/12/042		745,637		744,661
1.28%, 08/19/042		397,673		395,694
Federal National Mortgage Association
1.28%, 08/20/042		1,292,437		1,285,958
				2,426,313
TOTAL SHORT-TERM INVESTMENTS (Cost: $121,315,670)				121,315,670
TOTAL INVESTMENTS IN SECURITIES – 107.29% (Cost: $1,721,007,490)				1,766,114,459
Other Assets, Less Liabilities – (7.29%)				(119,968,135	)
NET ASSETS – 100.00%			$	1,646,146,324

¹ Non-income earning securities.

² All or a portion of this security represents investments of securities lending collateral.

³ Issuer is an affiliate of the Fund’s investment advisor. See Note 2.

⁴ Security exempt from registration under Rule 144A of the Securities Act of 1933.

These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

See notes to financial statements.

32 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® RUSSELL 1000 VALUE INDEX FUND

March 31, 2004

Security	Shares	Value
COMMON STOCKS – 99.91%
Exxon Mobil Corp.	3,281,609	$	136,482,118
Citigroup Inc.	2,529,255		130,762,483
Bank of America Corp.	735,166		59,533,743
Verizon Communications Inc.	1,351,278		49,375,698
ChevronTexaco Corp.	524,908		46,076,424
Wells Fargo & Company	778,259		44,103,938
JP Morgan Chase & Co.	998,021		41,866,981
Altria Group Inc.	761,083		41,440,969
SBC Communications Inc.	1,632,427		40,059,759
American International Group Inc.	552,629		39,430,079
International Business Machines Corp.	398,571		36,604,761
Time Warner Inc.1	2,125,665		35,838,712
Hewlett-Packard Co.	1,499,818		34,255,843
Bank One Corp.	561,301		30,602,131
Wachovia Corp.	629,235		29,574,045
Morgan Stanley	476,621		27,310,383
Merck & Co. Inc.	614,800		27,168,012
Merrill Lynch & Co. Inc.	455,465		27,127,495
U.S. Bancorp	943,287		26,081,886
BellSouth Corp.	907,481		25,128,149
Procter & Gamble Co.	229,661		24,086,846
FleetBoston Financial Corp.	518,649		23,287,340
ConocoPhillips	333,517		23,282,822
Walt Disney Co. (The)	750,003		18,742,575
Du Pont (E.I.) de Nemours and Co.	436,565		18,431,774
Washington Mutual Inc.	427,259		18,248,232
Viacom Inc. Class B	460,436		18,053,696
McDonald’s Corp.	625,214		17,862,364
Comcast Corp. Class A1	588,538		16,914,582
Dow Chemical Co. (The)	404,466		16,291,890
Allstate Corp. (The)	345,924		15,725,705
Freddie Mac	263,849		15,582,922
Goldman Sachs Group Inc. (The)	139,844		14,592,721
Alcoa Inc.	415,376		14,409,393
Honeywell International Inc.	408,110		13,814,523
Caterpillar Inc.	169,276		13,384,653
United Technologies Corp.	151,964		13,114,493
Prudential Financial Inc.	270,908		12,131,260
Motorola Inc.	672,031		11,827,746
Ford Motor Company	863,714		11,720,599
Schering-Plough Corp.	721,289		11,699,308
Gannett Co. Inc.	131,896		11,625,313
Bristol-Myers Squibb Co.	474,947		11,507,966
Kimberly-Clark Corp.	173,860		10,970,566
Exelon Corp.	159,210		10,964,793
Southern Company	354,396		10,809,078
General Motors Corp.	227,110		10,696,881
Emerson Electric Co.	173,214		10,378,983
Dominion Resources Inc.	157,522		10,128,665
Bank of New York Co. Inc. (The)	319,419		10,061,698
Duke Energy Corp.	442,481		10,000,071
Lehman Brothers Holdings Inc.	120,105		9,953,101
International Paper Co.	235,164		9,938,031
BB&T Corp.	273,902		9,668,741
National City Corp.	271,211		9,649,687
Liberty Media Corp. Class A1	865,820		9,480,729
Cendant Corp.	385,577		9,404,223
Hartford Financial Services Group Inc.	138,663		8,832,833
Occidental Petroleum Corp.	186,214		8,575,155
SunTrust Banks Inc.	121,159		8,445,994
Northrop Grumman Corp.	85,227		8,388,041
Lucent Technologies Inc.1	2,031,231		8,348,359
AT&T Wireless Services Inc.1	610,782		8,312,743
Deere & Co.	117,532		8,146,143
Sprint Corp. (FON Group)	441,419		8,135,352
PNC Financial Services Group	142,258		7,883,938
Coca-Cola Co. (The)	154,670		7,779,901
General Dynamics Corp.	86,728		7,747,412
Countrywide Financial Corp.	80,512		7,721,101
Alltel Corp.	152,827		7,624,539
State Street Corp.	145,900		7,605,767
AT&T Corp.	386,033		7,554,666
Gillette Co. (The)	192,022		7,508,060
American Express Co.	144,429		7,488,644
Union Pacific Corp.	124,744		7,462,186
Avon Products Inc.	97,188		7,373,654
Travelers Property Casualty Corp. Class B	414,074		7,151,058
ConAgra Foods Inc.	263,656		7,102,893

SCHEDULES OF INVESTMENTS 33

Schedule of Investments (Continued)

iSHARES^® RUSSELL 1000 VALUE INDEX FUND

March 31, 2004

Security	Shares	Value
Weyerhaeuser Co.	107,535	$	7,043,543
Agilent Technologies Inc.1	219,325		6,937,250
Apache Corp.	158,676		6,850,043
Golden West Financial Corp.	61,149		6,845,631
CVS Corp.	193,438		6,828,361
FedEx Corp.	90,225		6,781,311
Sun Microsystems Inc.1	1,585,568		6,595,963
Entergy Corp.	110,850		6,595,575
Devon Energy Corp.	113,302		6,588,511
American Electric Power Co. Inc.	193,920		6,383,846
Chubb Corp.	90,974		6,326,332
Raytheon Co.	201,558		6,316,828
KeyCorp	207,569		6,287,265
Burlington Resources Inc.	98,568		6,271,882
Hancock (John) Financial Services Inc.	141,870		6,198,300
Lockheed Martin Corp.	135,384		6,178,926
Kroger Co.1	370,451		6,164,305
FPL Group Inc.	89,981		6,015,230
MetLife Inc.	166,807		5,951,674
Clear Channel Communications Inc.	137,744		5,833,458
PG&E Corp.1	200,881		5,819,523
FirstEnergy Corp.	148,192		5,791,343
Burlington Northern Santa Fe Corp.	182,939		5,762,578
Equity Office Properties Trust	197,695		5,711,409
Air Products & Chemicals Inc.	111,564		5,591,588
Johnson Controls Inc.	92,559		5,474,865
Fortune Brands Inc.	71,337		5,466,554
Public Service Enterprise Group Inc.	110,886		5,209,424
Costco Wholesale Corp.1	138,155		5,189,102
PepsiCo Inc.	96,145		5,177,408
Marathon Oil Corp.	152,109		5,121,510
Principal Financial Group Inc.	142,511		5,077,667
Federated Department Stores Inc.	91,950		4,969,897
SouthTrust Corp.	149,806		4,967,567
Progress Energy Inc.	105,202		4,952,910
Sara Lee Corp.	225,455		4,928,446
May Department Stores Co. (The)	141,596		4,896,390
PPG Industries Inc.	83,309		4,856,915
Apple Computer Inc.1	179,463		4,854,474
Consolidated Edison Inc.	109,601		4,833,404
Unocal Corp.	126,653		4,721,624
Monsanto Co.	128,317		4,705,384
Comerica Inc.	85,981		4,670,488
Penney (J.C.) Co. Inc. (Holding Co.)	133,175		4,631,827
Sears, Roebuck and Co.	107,296		4,609,436
Masco Corp.	151,157		4,601,219
PACCAR Inc.	80,880		4,548,691
TXU Corp.	158,184		4,533,553
Tribune Co.	89,579		4,518,365
Franklin Resources Inc.	80,620		4,488,922
Safeway Inc.1	216,657		4,458,801
Xerox Corp.1	305,581		4,452,315
MBIA Inc.	70,617		4,427,686
Limited Brands Inc.	217,995		4,359,900
Kraft Foods Inc.	135,129		4,325,479
Archer-Daniels-Midland Co.	254,625		4,295,524
Electronic Data Systems Corp.	221,420		4,284,477
Bear Stearns Companies Inc. (The)	48,623		4,263,265
Norfolk Southern Corp.	191,319		4,226,237
Marshall & Ilsley Corp.	111,259		4,206,703
Georgia-Pacific Corp.	122,840		4,138,480
St. Paul Companies Inc.	103,100		4,125,031
Lincoln National Corp.	87,115		4,122,282
Praxair Inc.	110,995		4,120,134
Ameren Corp.	89,293		4,115,514
General Mills Inc.	88,156		4,115,122
Northern Trust Corp.	88,156		4,107,188
Eaton Corp.	73,082		4,106,478
CIGNA Corp.	68,810		4,061,166
AmSouth Bancorp	172,325		4,051,361
Simon Property Group Inc.	68,898		4,026,399
Equity Residential	133,766		3,992,915
Regions Financial Corp.	109,010		3,981,045
PPL Corp.	85,920		3,917,952
Waste Management Inc.	129,445		3,906,650
Charter One Financial Inc.	110,433		3,904,911
Aetna Inc.	42,984		3,856,524
Jefferson-Pilot Corp.	69,744		3,836,617
Valero Energy Corp.	63,882		3,830,365
Loews Corp.	63,892		3,773,462
Mellon Financial Corp.	120,492		3,770,195

34 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 1000 VALUE INDEX FUND

March 31, 2004

Security	Shares	Value
Heinz (H.J.) Co.	100,547	$	3,749,398
Anthem Inc.1	41,189		3,733,371
MBNA Corp.	134,838		3,725,574
General Growth Properties Inc.	105,237		3,699,081
CIT Group Inc.	97,190		3,698,079
Albertson’s Inc.	166,701		3,692,427
AFLAC Inc.	91,963		3,691,395
Eastman Kodak Co.	140,597		3,679,423
3M Co.	43,732		3,580,339
Anadarko Petroleum Corp.	68,805		3,568,227
Corning Inc.1	318,153		3,556,951
Cinergy Corp.	86,419		3,533,673
Computer Sciences Corp.1	87,288		3,520,325
AON Corp.	125,012		3,489,085
Xcel Energy Inc.	195,677		3,485,007
Illinois Tool Works Inc.	43,911		3,479,069
Avaya Inc.1	215,241		3,418,027
DTE Energy Co.	82,432		3,392,077
Edison International	139,582		3,390,447
Newmont Mining Corp.	71,377		3,328,310
Parker Hannifin Corp.	57,968		3,275,192
Constellation Energy Group Inc.	81,135		3,241,343
CSX Corp.	104,874		3,176,633
Sovereign Bancorp Inc.	148,128		3,172,902
Dover Corp.	80,496		3,120,830
Sempra Energy	98,107		3,119,803
Rohm & Haas Co.	77,461		3,086,046
Torchmark Corp.	56,962		3,063,986
Donnelley (R.R.) & Sons Co.	99,456		3,008,544
Textron Inc.	56,345		2,994,737
UST Inc.	82,052		2,962,077
Interpublic Group of Companies Inc.1	192,357		2,958,451
KeySpan Corp.	77,194		2,950,355
M&T Bank Corp.	32,810		2,947,979
Plum Creek Timber Co. Inc.	89,772		2,915,795
Cincinnati Financial Corp.	66,878		2,905,849
Wyeth	76,888		2,887,144
ProLogis	80,099		2,873,151
National Commerce Financial Corp.	100,394		2,872,272
Office Depot Inc.1	151,500		2,851,230
Archstone-Smith Trust	95,684		2,823,635
Capital One Financial Corp.	37,329		2,815,726
Starwood Hotels & Resorts Worldwide Inc.	69,524		2,815,722
Rockwell Automation Inc.	81,200		2,815,204
D.R. Horton Inc.	78,961		2,797,588
Genuine Parts Co.	85,301		2,791,049
Ambac Financial Group Inc.	37,716		2,782,686
First Tennessee National Corp.	58,312		2,781,482
MeadWestvaco Corp.	98,314		2,781,303
Union Planters Corp.	92,812		2,770,438
SAFECO Corp.	63,552		2,743,540
NiSource Inc.	128,635		2,733,494
Banknorth Group Inc.	79,781		2,715,745
DIRECTV Group Inc. (The)1	176,006		2,706,972
Lennar Corp. Class A	50,016		2,702,364
Fidelity National Financial Inc.	67,467		2,671,693
Pulte Homes Inc.	47,771		2,656,068
Compass Bancshares Inc.	62,257		2,581,798
Vornado Realty Trust	42,192		2,551,772
Kerr-McGee Corp.	49,477		2,548,066
Knight Ridder Inc.	34,751		2,545,511
Dean Foods Co.1	75,952		2,536,797
Zions Bancorporation	44,223		2,529,556
Medco Health Solutions Inc.1	74,027		2,516,918
Micron Technology Inc.1	149,867		2,504,278
R.J. Reynolds Tobacco Holdings Inc.	41,364		2,502,522
Huntington Bancshares Inc.	112,162		2,488,875
Cox Communications Inc. Class A1	78,737		2,488,089
Williams Companies Inc.	253,972		2,430,512
GreenPoint Financial Corp.	55,555		2,428,309
Kimco Realty Corp.	47,468		2,419,919
Kellogg Co.	61,415		2,409,925
Public Storage Inc.	48,920		2,380,447
Rouse Co. (The)	44,354		2,377,374
Nucor Corp.	38,354		2,358,004
Murphy Oil Corp.	37,416		2,356,086
Sunoco Inc.	37,696		2,351,476
Sherwin-Williams Co. (The)	60,567		2,327,590
Duke Realty Corp.	66,388		2,304,991
Amerada Hess Corp.	35,158		2,295,114

SCHEDULES OF INVESTMENTS 35

Schedule of Investments (Continued)

iSHARES^® RUSSELL 1000 VALUE INDEX FUND

March 31, 2004

Security	Shares	Value
MGIC Investment Corp.	35,568	$	2,284,533
North Fork Bancorp Inc.	53,643		2,270,172
Qwest Communications International Inc.1	518,930		2,236,588
Scientific-Atlanta Inc.	69,145		2,236,149
iStar Financial Inc.	52,856		2,235,809
El Paso Corp.	314,402		2,235,398
Delphi Corp.	222,329		2,214,397
NTL Inc.1	36,742		2,184,312
Old Republic International Corp.	88,754		2,179,798
New York Community Bancorp Inc.	63,556		2,178,700
Centex Corp.	39,622		2,141,965
Jones Apparel Group Inc.	58,916		2,129,813
Smurfit-Stone Container Corp.	120,352		2,116,992
Tenet Healthcare Corp.1	188,117		2,099,386
Vulcan Materials Co.	44,007		2,087,692
United States Steel Corp.	55,716		2,076,535
UNUMProvident Corp.	141,114		2,064,498
HCA Inc.	50,408		2,047,573
Boston Properties Inc.	37,349		2,028,424
Republic Services Inc.	74,537		2,017,717
SUPERVALU Inc.	65,549		2,001,866
Popular Inc.	45,933		1,979,712
Watson Pharmaceuticals Inc.1	45,945		1,965,987
Wendy’s International Inc.	47,821		1,945,836
Coca-Cola Enterprises Inc.	80,343		1,941,890
Host Marriott Corp.1	151,363		1,934,419
CenturyTel Inc.	70,334		1,933,482
Liz Claiborne Inc.	52,650		1,931,729
SCANA Corp.	54,615		1,930,640
Janus Capital Group Inc.	117,356		1,922,291
Lear Corp.	30,716		1,903,163
VF Corp.	40,311		1,882,524
Allied Capital Corp.	61,782		1,871,377
American Power Conversion Corp.	81,167		1,867,653
Nordstrom Inc.	46,791		1,866,961
NCR Corp.1	42,318		1,864,531
Phelps Dodge Corp.1	22,816		1,863,155
XM Satellite Radio Holdings Inc. Class A1	66,372		1,858,416
Tyson Foods Inc. Class A	102,351		1,847,436
Wisconsin Energy Corp.	57,311		1,842,549
Liberty Property Trust	40,709		1,831,905
Sirius Satellite Radio Inc.1	538,149		1,829,707
Caesars Entertainment Inc.1	140,137		1,827,386
Energy East Corp.	71,353		1,809,512
Hibernia Corp. Class A	76,981		1,808,284
Citizens Communications Co.1	139,331		1,802,943
Health Care Property Investors Inc.	63,550		1,798,465
Grainger (W.W.) Inc.	37,433		1,796,784
Foot Locker Inc.	69,526		1,793,771
PeopleSoft Inc.1	96,820		1,790,202
Advanced Micro Devices Inc.1	110,191		1,788,400
Radian Group Inc.	41,823		1,781,660
Marriott International Inc. Class A	41,867		1,781,441
Southwest Airlines Co.	125,204		1,779,149
Thermo Electron Corp.1	62,813		1,776,352
ServiceMaster Co. (The)	146,582		1,760,450
PMI Group Inc. (The)	47,007		1,756,182
Toys R Us Inc.1	104,459		1,754,911
McKesson Corp.	57,884		1,741,730
Whirlpool Corp.	25,228		1,737,452
AvalonBay Communities Inc.	32,041		1,716,757
Diebold Inc.	35,420		1,704,410
Brunswick Corp.	41,474		1,693,383
Engelhard Corp.	56,471		1,687,918
Campbell Soup Co.	61,313		1,672,006
Vishay Intertechnology Inc.1	78,292		1,670,751
InterActiveCorp1	52,813		1,668,363
Clorox Co.	33,953		1,660,641
Pioneer Natural Resources Co.	50,992		1,647,042
Autodesk Inc.	51,675		1,633,963
Eastman Chemical Co.	38,177		1,629,394
Goodrich (B.F.) Co.	57,726		1,620,369
Sabre Holdings Corp.	65,171		1,616,893
Pinnacle West Capital Corp.	40,977		1,612,445
Hershey Foods Corp.	19,312		1,599,999
Pitney Bowes Inc.	37,549		1,599,963
Washington Post Company (The) Class B	1,801		1,592,822
KB Home	19,609		1,584,407
Pepco Holdings Inc.	77,133		1,576,599

36 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 1000 VALUE INDEX FUND

March 31, 2004

Security	Shares	Value
Colgate-Palmolive Co.	28,585	$	1,575,033
Ashland Inc.	33,668		1,565,225
PacifiCare Health Systems Inc.1	38,988		1,541,975
Macerich Co. (The)	28,447		1,533,293
Boeing Co. (The)	37,221		1,528,666
Sanmina-SCI Corp.1	138,511		1,525,006
CenterPoint Energy Inc.	132,973		1,519,881
Associated Bancorp	33,723		1,510,453
Humana Inc.1	79,194		1,506,270
Mercantile Bankshares Corp.	34,968		1,502,575
Developers Diversified Realty Corp.	37,006		1,495,042
Hasbro Inc.	68,351		1,486,634
ALLETE Inc.	42,294		1,484,096
Questar Corp.	40,581		1,478,772
Bausch & Lomb Inc.	24,357		1,460,689
AutoNation Inc.1	85,363		1,455,439
Dana Corp.	73,284		1,455,420
Fluor Corp.	37,561		1,453,235
Temple-Inland Inc.	22,899		1,450,423
Commerce Bancshares Inc.	30,373		1,449,096
King Pharmaceuticals Inc.1	85,811		1,445,057
Astoria Financial Corp.	37,979		1,444,341
Avnet Inc.1	58,875		1,441,849
Cadence Design Systems Inc.1	97,673		1,439,700
SPX Corp.	31,620		1,438,078
Apartment Investment & Management Co. Class A	46,066		1,432,192
Leggett & Platt Inc.	59,893		1,420,063
Hospitality Properties Trust	30,548		1,417,427
AmerisourceBergen Corp.	25,808		1,411,181
Pogo Producing Co.	30,531		1,400,457
Baker Hughes Inc.	37,977		1,385,401
Alliant Energy Corp.	52,971		1,380,424
AMB Property Corp.	36,941		1,373,097
Hilton Hotels Corp.	84,421		1,371,841
Mohawk Industries Inc.1	16,637		1,370,057
Equitable Resources Inc.	30,839		1,369,868
Rockwell Collins Inc.	43,018		1,359,799
Energizer Holdings Inc.1	29,076		1,357,558
TECO Energy Inc.	92,575		1,354,372
Brown-Forman Corp. Class B	28,246		1,346,204
UnionBanCal Corp.	25,650		1,343,804
3Com Corp.1	188,698		1,332,208
Precision Castparts Corp.	30,254		1,332,084
Computer Associates International Inc.	49,241		1,322,613
NSTAR	25,991		1,318,264
ENSCO International Inc.	46,755		1,317,088
Invitrogen Corp.1	18,361		1,316,300
Catellus Development Corp.	50,599		1,316,080
Compuware Corp.1	176,368		1,313,942
Stanley Works (The)	30,726		1,311,386
Fox Entertainment Group Inc. Class A1	48,343		1,310,095
New Plan Excel Realty Trust	47,817		1,307,795
Manor Care Inc.	36,598		1,291,543
MDU Resources Group Inc.	54,935		1,290,423
Smucker (J.M.) Co. (The)	24,388		1,287,199
Bank of Hawaii Corp.	27,608		1,279,079
Mack-Cali Realty Corp.	28,430		1,276,791
Pentair Inc.	21,422		1,263,898
Becton, Dickinson & Co.	25,795		1,250,542
Millennium Pharmaceuticals Inc.1	73,070		1,234,883
United Dominion Realty Trust Inc.	62,808		1,232,293
Apogent Technologies Inc.1	39,835		1,222,138
Alberto-Culver Co.	27,612		1,211,338
Thornburg Mortgage Inc.	38,831		1,207,644
Wilmington Trust Corp.	32,280		1,206,304
Berkley (W.R.) Corp.	30,235		1,205,772
Bemis Co.	46,153		1,199,978
City National Corp.	20,021		1,199,258
Solectron Corp.1	214,096		1,183,951
L-3 Communications Holdings Inc.	19,812		1,178,418
Telephone & Data Systems Inc.	16,566		1,174,032
Weingarten Realty Investors	33,825		1,170,345
Sky Financial Group Inc.	45,080		1,169,826
Northeast Utilities	62,563		1,166,800
Protective Life Corp.	31,154		1,166,717
DPL Inc.	61,977		1,162,069
Great Plains Energy Inc.	34,166		1,154,469
Fulton Financial Corp.	51,726		1,151,938
XTO Energy Inc.	45,596		1,150,849

SCHEDULES OF INVESTMENTS 37

Schedule of Investments (Continued)

iSHARES^® RUSSELL 1000 VALUE INDEX FUND

March 31, 2004

Security	Shares	Value
Novell Inc.1	100,820	$	1,147,332
Leucadia National Corp.	21,497		1,145,360
Valspar Corp. (The)	23,225		1,143,367
Webster Financial Corp.	22,343		1,133,014
Hillenbrand Industries Inc.	16,618		1,128,196
Colonial BancGroup Inc. (The)	60,876		1,126,206
Newell Rubbermaid Inc.	48,275		1,119,980
Martin Marietta Materials Inc.	24,150		1,114,764
E*TRADE Financial Corp.1	83,481		1,114,471
Bowater Inc.	25,449		1,110,340
BorgWarner Inc.	13,088		1,110,255
Harrah’s Entertainment Inc.	20,226		1,110,205
Smithfield Foods Inc.1	40,927		1,109,940
OGE Energy Corp.	41,889		1,107,545
Boise Cascade Corp.	31,913		1,105,785
Ryder System Inc.	28,464		1,102,411
Sonoco Products Co.	45,338		1,100,807
Annaly Mortgage Management Inc.	56,282		1,100,313
New York Times Co. Class A	24,831		1,097,530
Ryland Group Inc.	12,329		1,095,185
Puget Energy Inc.	48,939		1,094,765
Service Corp. International1	146,514		1,094,460
Harris Corp.	22,530		1,090,677
Saks Inc.1	61,737		1,086,571
Reliant Resources Inc.1	131,718		1,081,405
Tech Data Corp.1	26,407		1,081,103
Cullen/Frost Bankers Inc.	25,203		1,077,680
Edwards (A.G.) Inc.	27,484		1,075,174
Constellation Brands Inc.1	33,405		1,072,300
Arrow Electronics Inc.1	42,045		1,070,466
Hormel Foods Corp.	36,407		1,067,817
ONEOK Inc.	47,320		1,067,066
Rayonier Inc. REIT	24,302		1,062,240
American Capital Strategies Ltd.	31,871		1,059,392
Sigma-Aldrich Corp.	19,126		1,058,433
Autoliv Inc.	25,786		1,057,226
Tellabs Inc.1	120,740		1,041,986
Level 3 Communications Inc.1	258,115		1,037,622
Toll Brothers Inc.1	22,803		1,035,940
LSI Logic Corp.1	110,798		1,034,853
Circuit City Stores Inc.	90,828		1,026,356
Allied Waste Industries Inc.1	77,063		1,025,709
Pan Pacific Retail Properties Inc.	19,583		1,020,274
Lyondell Chemical Co.	68,081		1,010,322
Deluxe Corp.	25,172		1,009,397
First American Corp.	32,856		999,480
Siebel Systems Inc.1	86,789		998,941
Providian Financial Corp.1	75,936		994,762
Nationwide Financial Services Inc.	27,592		994,692
Cummins Inc.	16,990		993,065
FirstMerit Corp.	38,108		992,713
Lee Enterprises Inc.	21,969		992,559
Valley National Bancorp	35,486		992,543
Tektronix Inc.	30,250		989,478
Federal Realty Investment Trust	21,404		988,865
Aqua America Inc.	45,370		983,622
Hubbell Inc. Class B	24,505		983,386
Independence Community Bank Corp.	23,897		973,803
MGM Mirage1	21,470		973,450
Washington Federal Inc.	37,866		966,719
Belo (A.H.) Corp.	34,755		964,799
HRPT Properties Trust	85,273		963,585
Convergys Corp.1	63,324		962,525
Unitrin Inc.	22,382		960,188
Hawaiian Electric Industries Inc.	18,336		950,538
Neiman-Marcus Group Inc. Class A	17,509		944,435
CenterPoint Properties Corp.	11,447		944,377
McGraw-Hill Companies Inc. (The)	12,370		941,852
Ingram Micro Inc. Class A1	51,907		939,517
Cabot Corp.	28,563		936,866
RPM International Inc.	56,593		936,048
StanCorp Financial Group Inc.	14,282		931,901
Snap-On Inc.	28,757		930,001
Harsco Corp.	20,047		912,138
Vectren Corp.	36,833		908,670
IKON Office Solutions Inc.	70,777		905,946
Arden Realty Inc.	27,839		900,035
AGL Resources Inc.	31,010		899,910
IndyMac Bancorp Inc.	24,757		898,432
Storage Technology Corp.1	31,976		889,892

38 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 1000 VALUE INDEX FUND

March 31, 2004

Security	Shares	Value
Omnicare Inc.	20,002	$	886,689
Coors (Adolf) Company Class B	12,749		885,418
Calpine Corp.1	189,362		884,321
Healthcare Realty Trust Inc.	20,572		878,424
Realty Income Corp.	19,550		872,908
Shurgard Storage Centers Inc. Class A	21,854		871,975
CarrAmerica Realty Corp.	25,388		860,653
WPS Resources Corp.	17,888		855,046
Carlisle Companies Inc.	15,055		852,866
Teleflex Inc.	17,267		850,054
Crane Co.	25,460		840,180
Reebok International Ltd.	20,283		838,702
BancorpSouth Inc.	38,239		836,669
Transatlantic Holdings Inc.	9,537		831,722
BRE Properties Inc. Class A	24,124		827,936
Intersil Corp. Class A	37,075		826,402
AmeriCredit Corp.1	48,442		824,967
Whitney Holding Corp.	19,703		822,403
Provident Financial Group Inc.	20,383		818,581
UGI Corp.	24,824		817,206
CNF Inc.	24,027		807,307
Wrigley (William Jr.) Co.	13,564		801,904
Lubrizol Corp.	25,443		801,200
National Fuel Gas Co.	32,504		799,598
Hudson City Bancorp Inc.	21,119		799,143
T. Rowe Price Group Inc.	14,808		797,115
McCormick & Co. Inc.	23,768		796,703
Noble Energy Inc.	16,906		796,273
Peoples Energy Corp.	17,813		795,350
Pactiv Corp.1	35,587		791,811
First Midwest Bancorp Inc.	22,955		783,684
Chelsea Property Group Inc.	12,365		778,253
Nicor Inc.	21,773		767,063
Forest City Enterprises Inc. Class A	14,214		765,424
Hudson United Bancorp	20,107		765,071
TCF Financial Corp.	14,746		753,078
International Rectifier Corp.1	16,374		753,040
Camden Property Trust	16,574		745,001
Piedmont Natural Gas Co.	17,609		743,452
Markel Corp.1	2,579		742,494
Old National Bancorp	32,544		735,494
Borders Group Inc.	30,912		733,851
Owens-Illinois Inc.1	52,321		733,540
AGCO Corp.1	35,246		729,945
Furniture Brands International Inc.	22,630		728,686
MONY Group Inc. (The)1	23,142		727,584
Atmel Corp.1	111,682		725,933
Duquesne Light Holdings Inc.	36,960		720,720
WGL Holdings Inc.	23,745		714,725
Raymond James Financial Inc.	28,668		712,400
Peabody Energy Corp.	15,245		709,045
Helmerich & Payne Inc.	24,465		700,922
Trustmark Corp.	23,876		694,792
Automatic Data Processing Inc.	16,532		694,344
Crescent Real Estate Equities Co.	38,286		687,999
Trizec Properties Inc.	39,842		683,290
International Bancshares Corp.	12,879		680,398
Comverse Technology Inc.1	37,283		676,314
Mills Corp.	12,684		675,930
Polo Ralph Lauren Corp.	19,579		671,168
Cytec Industries Inc.	18,817		669,321
Metro-Goldwyn-Mayer Inc.1	38,298		666,385
Ethan Allen Interiors Inc.	15,996		659,995
Jefferies Group Inc.	18,651		658,940
Fairchild Semiconductor International Inc. Class A1	27,408		658,614
PerkinElmer Inc.	31,694		655,749
Imation Corp.	17,400		654,588
Packaging Corporation of America	28,915		652,322
M.D.C. Holdings Inc.	9,232		649,926
American Tower Corp. Class A1	57,027		647,256
Mercury General Corp.	12,837		640,951
Park National Corp.	5,655		640,712
ADC Telecommunications Inc.1	220,165		638,477
AptarGroup Inc.	16,617		638,093
Lafarge North America Inc.	15,622		635,034
Mandalay Resort Group	11,078		634,326
CBL & Associates Properties Inc.	10,269		629,900
Triad Hospitals Inc.1	20,314		626,077

SCHEDULES OF INVESTMENTS 39

Schedule of Investments (Continued)

iSHARES^® RUSSELL 1000 VALUE INDEX FUND

March 31, 2004

Security	Shares	Value
Airgas Inc.	29,211	$	622,194
Polycom Inc.1	29,134		618,515
McClatchy Co. (The) Class A	8,703		618,261
HON Industries Inc.	16,538		614,552
Gemstar-TV Guide International Inc.1	91,581		614,509
ArvinMeritor Inc.	30,882		612,390
Valassis Communications Inc.1	20,096		610,918
Halliburton Co.	20,102		610,900
National Semiconductor Corp.1	13,718		609,491
BearingPoint Inc.1	56,424		604,865
Westamerica Bancorp	11,930		601,988
Barnes & Noble Inc.1	18,342		597,949
HCC Insurance Holdings Inc.	18,387		594,452
PepsiAmericas Inc.	29,022		592,629
Regency Centers Corp.	12,545		586,228
People’s Bank	12,578		584,751
Ceridian Corp.1	29,255		576,616
Erie Indemnity Co. Class A	11,847		571,736
Kinder Morgan Inc.	9,008		567,684
Newfield Exploration Co.1	11,796		565,382
United Bancshares Inc.	18,522		564,921
CIENA Corp.1	112,446		558,857
Advanced Fibre Communications Inc.1	25,325		557,910
Scotts Co. (The) Class A1	8,693		557,656
Unisys Corp.1	38,802		554,093
Downey Financial Corp.	10,448		552,699
Readers Digest Association Inc. (The)	39,210		552,077
ICOS Corp.1	14,799		548,303
Del Monte Foods Co.1	48,611		546,874
Manpower Inc.	11,754		546,561
Lancaster Colony Corp.	13,502		545,481
Viad Corp.	22,514		544,163
Loews Corporation – Carolina Group	19,663		537,783
Dynegy Inc. Class A1	135,157		535,222
Media General Inc. Class A	7,900		531,512
La-Z-Boy Inc.	24,318		529,160
American Financial Group Inc.	17,619		525,575
American Axle & Manufacturing Holdings Inc.1	14,260		525,481
Neurocrine Biosciences Inc.1	8,867		524,040
Blyth Inc.	16,021		523,406
Henry Schein Inc.1	7,244		517,366
Florida Rock Industries Inc.	12,130		511,280
Premcor Inc.1	16,498		510,943
Piper Jaffray Companies Inc.1	9,393		508,631
Pride International Inc.1	29,776		507,979
Navistar International Corp.1	11,045		506,413
FNB Corp. (Florida)	22,876		505,560
Valeant Pharmaceuticals International	21,003		501,342
Maxtor Corp.1	61,421		500,581
Cypress Semiconductor Corp.1	24,193		495,231
CheckFree Corp.1	16,583		488,535
WellPoint Health Networks Inc.1	4,269		485,471
Applied Micro Circuits Corp.1	83,125		477,969
National-Oilwell Inc.1	16,814		475,500
Reinsurance Group of America Inc.	11,587		474,719
VeriSign Inc.1	28,250		468,668
Rowan Companies Inc.1	22,160		467,354
Integrated Device Technology Inc.1	30,909		463,635
UnitedGlobalCom Inc. Class A1	54,518		462,858
Smith International Inc.1	8,545		457,243
American National Insurance Co.	5,051		452,014
Avery Dennison Corp.	7,246		450,774
International Flavors & Fragrances Inc.	12,616		447,868
Legg Mason Inc.	4,825		447,664
Regis Corp.	10,065		447,289
Renal Care Group Inc.1	9,731		445,291
Big Lots Inc.1	30,542		442,859
Novellus Systems Inc.1	13,913		442,294
Western Gas Resources Inc.	8,623		438,480
AMETEK Inc.	16,961		434,880
Instinet Group Inc.1	61,634		434,520
Hunt (J.B.) Transport Services Inc.1	15,353		432,494
Tidewater Inc.	15,289		430,080

40 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 1000 VALUE INDEX FUND

March 31, 2004

Security	Shares	Value
Hovnanian Enterprises Inc. Class A1	9,880	$	426,322
AVX Corp.	25,799		425,426
Delta Air Lines Inc.	53,427		423,142
Alleghany Corp.1	1,673		413,684
Pepsi Bottling Group Inc.	13,775		409,806
Health Net Inc.1	16,181		403,392
First National Bankshares of Florida	22,876		401,931
Tootsie Roll Industries Inc.	10,971		401,088
CBRL Group Inc.	10,100		400,364
Radio One Inc. Class D1	21,576		399,156
Hearst-Argyle Television Inc.	14,703		395,364
Human Genome Sciences Inc.1	31,509		394,808
Cousins Properties Inc.	11,999		393,447
Outback Steakhouse Inc.	8,073		393,155
LNR Property Corp.	7,260		388,628
Darden Restaurants Inc.	15,336		380,179
Westport Resources Corp.1	11,515		379,880
Capitol Federal Financial	10,150		364,385
Community Health Systems Inc.1	13,003		361,873
Scholastic Corp.1	13,253		361,144
WellChoice Inc.1	9,601		354,277
Worthington Industries Inc.	18,410		352,920
Affiliated Computer Services Inc. Class A1	6,773		351,519
PanAmSat Corp.1	14,248		348,791
Equifax Inc.	13,282		342,941
BOK Financial Corp.1	8,166		334,806
Timken Co. (The)	14,384		334,140
Danaher Corp.	3,577		333,984
Meredith Corp.	6,577		332,533
Synovus Financial Corp.	13,510		330,320
Brocade Communications Systems Inc.1	49,162		327,419
Regal Entertainment Group Class A	14,706		323,238
Applera Corp. – Applied Biosystems Group	15,720		310,942
Diamond Offshore Drilling Inc.	12,821		310,140
Winn-Dixie Stores Inc.	40,621		308,720
IDT Corp.1	15,530		308,581
Student Loan Corp.	1,978		306,610
CNA Financial Corp.1	11,085		305,503
Protein Design Labs Inc.1	12,484		297,369
Crown Castle International Corp.1	23,404		295,593
Lamar Advertising Co.1	7,334		294,973
Rite Aid Corp.1	53,689		292,068
Michaels Stores Inc.	5,938		288,706
Ball Corp.	4,175		282,981
SunGard Data Systems Inc.1	10,255		280,987
First Bancorp	6,667		277,347
Texas Genco Holdings Inc.	7,511		268,518
Steelcase Inc. Class A	20,652		268,476
Wesco Financial Corp.	693		268,191
Bard (C.R.) Inc.	2,715		265,093
Wynn Resorts Ltd.1	7,557		264,495
Werner Enterprises Inc.	13,360		253,172
Emulex Corp.1	11,584		246,623
Pall Corp.	10,791		244,848
Jabil Circuit Inc.1	8,267		243,298
Varco International Inc.1	13,488		242,919
Performance Food Group Co.1	7,056		242,374
Chesapeake Energy Corp.	17,958		240,637
Church & Dwight Co. Inc.	5,460		236,473
Pier 1 Imports Inc.	9,763		231,383
Laboratory Corp. of America Holdings1	5,765		226,276
Alliant Techsystems Inc.1	4,144		225,434
Andrx Group1	8,182		222,550
Molex Inc.	7,305		221,999
Commerce Bancorp Inc.	3,348		220,566
Blockbuster Inc.	12,579		220,132
Acxiom Corp.	9,917		217,777
BMC Software Inc.1	10,815		211,433
ITT Industries Inc.	2,706		206,549
Symbol Technologies Inc.	14,569		201,052
LaBranche & Co. Inc.	17,894		200,592
WebMD Corp.1	21,150		188,024
GTECH Holdings Corp.	3,106		183,689
O’Reilly Automotive Inc.1	4,569		182,943
United States Cellular Corp.1	4,720		182,428

SCHEDULES OF INVESTMENTS 41

Schedule of Investments (Continued)

iSHARES^® RUSSELL 1000 VALUE INDEX FUND

March 31, 2004

Security	Shares		Value
Key Energy Services Inc.1		16,294	$	179,234
Friedman, Billings, Ramsey Group, Inc. Class A		6,252		168,741
Odyssey Re Holdings Corp.		6,106		164,862
Interactive Data Corp.1		9,238		164,252
Univision Communications Inc. Class A1		4,816		158,976
DST Systems Inc.1		3,504		158,906
Southern Peru Copper Corp.		3,911		158,200
Estee Lauder Companies Inc. Class A		3,546		157,230
DoubleClick Inc.1		13,914		156,532
Jacobs Engineering Group Inc.1		3,502		156,189
Network Associates Inc.1		8,520		153,360
International Speedway Corp. Class A		3,220		151,340
Rent-A-Center Inc.1		4,582		151,160
Cox Radio Inc. Class A1		6,936		147,737
Cablevision Systems Corp.1		6,255		143,114
Swift Transportation Co. Inc.1		7,977		136,965
Donaldson Co. Inc.		5,128		136,046
Avocent Corp.1		3,504		128,912
Entravision Communications Corp.1		12,678		113,722
Universal Health Services Inc. Class B		2,028		93,430
Cooper Cameron Corp.1		2,047		90,170
Harte-Hanks Inc.		3,718		87,076
Entercom Communications Corp.1		1,745		78,996
Claire’s Stores Inc.		2,939		61,249
Talbots Inc. (The)		1,625		58,143
BISYS Group Inc. (The)1		3,310		55,476
Grant Prideco Inc.1		3,471		53,800
MSC Industrial Direct Co. Inc. Class A		1,668		49,957
Steris Corp.1		1,807		46,621
Global Payments Inc.		716		32,277
West Corp.1		717		17,853
TOTAL COMMON STOCKS (Cost: $2,471,915,261)				2,704,165,805
Security	Shares or Principal		Value
SHORT-TERM INVESTMENTS – 7.89%
MONEY MARKET FUNDS – 3.27%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares2,3		64,659,109	$	64,659,109
Barclays Global Investors Funds Prime Money Market Fund, Institutional Shares2,3		18,539,514		18,539,514
BlackRock Temp Cash Money Market Fund2		867,795		867,795
Short-Term Investment Co. – Liquid Assets Money Market Portfolio2		4,321,497		4,321,497
				88,387,915
FLOATING RATE NOTES – 1.51%
Beta Finance Inc.
1.05%, 05/20/042,4	$	842,705		842,688
1.05%, 09/15/042,4		1,685,410		1,685,333
1.06%, 10/12/042,4		842,705		842,661
1.14%, 08/23/042,4		842,705		842,990
CC USA Inc.
1.05%, 04/19/042,4		741,581		741,579
1.06%, 05/24/042,4		1,685,410		1,685,386
1.09%, 07/15/042,4		842,705		842,792
1.51%, 02/15/052,4		1,095,517		1,097,041
Dorada Finance Inc.
1.04%, 07/01/042		589,894		588,343
1.05%, 05/20/042,4		1,685,410		1,685,376
1.24%, 08/09/042		421,353		421,330
1.48%, 01/18/052,4		1,264,058		1,264,008
Five Finance Inc.
1.06%, 04/15/042,4		842,705		842,705
HBOS Treasury Services PLC
1.10%, 04/22/052		1,685,410		1,685,410
Holmes Financing PLC
1.05%, 04/15/042		168,541		168,541
K2 USA LLC
1.05%, 08/16/042,4		421,353		421,329
1.05%, 09/27/042,4		1,820,243		1,820,110
1.06%, 04/13/042		842,705		842,704
1.06%, 05/17/042		842,705		842,700

42 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 1000 VALUE INDEX FUND

March 31, 2004

Security	Principal		Value
1.46%, 01/12/052,4	$	842,705	$	842,639
Links Finance LLC
1.05%, 06/28/042		842,705		842,665
1.06%, 05/04/042		842,705		842,701
1.06%, 07/20/042		674,164		674,124
Nationwide Building Society
1.09%, 07/23/042,4		1,264,058		1,264,058
1.11%, 12/28/042,4		1,685,410		1,685,410
Northern Rock PLC
1.11%, 01/13/052,4		1,601,140		1,601,140
Permanent Financing PLC
1.04%, 03/10/052		1,685,410		1,685,410
1.05%, 12/10/042		842,705		842,705
Sigma Finance Inc.
1.05%, 07/01/042		842,705		842,653
1.06%, 07/20/042		842,705		842,654
1.09%, 10/07/042		1,685,410		1,685,236
1.24%, 08/06/042		421,353		421,338
Tango Finance Corp.
1.05%, 01/18/052,4		741,581		741,521
1.06%, 07/15/042,4		505,623		505,575
1.07%, 02/25/052,4		943,830		943,660
1.10%, 07/06/042,4		505,623		505,610
WhistleJacket Capital LLC
1.05%, 09/15/042,4		842,705		842,628
1.32%, 02/04/052,4		421,353		421,281
White Pine Finance LLC
1.04%, 08/26/042,4		842,705		842,653
1.05%, 11/15/042,4		1,011,246		1,011,246
1.06%, 04/20/042,4		842,705		842,705
1.06%, 07/06/042,4		1,011,246		1,011,221
				40,903,859
COMMERCIAL PAPER – 1.40%
Alpine Securitization Corp.
1.03%, 04/14/042		792,143		791,848
1.03%, 04/20/042		842,705		842,247
1.03%, 04/23/042		994,392		993,766
1.03%, 04/26/042		842,705		842,102
Amsterdam Funding Corp.
1.03%, 05/05/042		682,591		681,927
Barton Capital Corp.
1.03%, 04/02/042		878,250		878,225
Blue Ridge Asset Funding Corp.
1.02%, 04/23/042		505,623		505,308
1.03%, 05/21/042		842,705		841,500
Corporate Asset Funding
1.05%, 05/21/042		876,413		875,141
Corporate Receivables Corp.
1.03%, 04/07/042		842,705		842,561
1.04%, 06/03/042		1,685,410		1,682,343
Delaware Funding Corp.
1.03%, 04/02/042		842,705		842,681
1.03%, 05/05/042		1,265,457		1,264,226
1.03%, 05/21/042		421,353		420,750
Edison Asset Securitization
1.07%, 09/21/042		842,705		838,372
Eureka Securitization Inc.
1.03%, 05/25/042		337,082		336,561
1.04%, 04/14/042		1,011,246		1,010,866
Falcon Asset Securitization
1.03%, 04/15/042		1,012,814		1,012,408
1.03%, 04/22/042		994,392		993,795
1.03%, 04/30/042		842,705		842,006
Galaxy Funding Inc.
1.05%, 05/17/042		842,705		841,580
Gemini Securitization Corp.
1.03%, 04/20/042		505,960		505,685
1.03%, 04/23/042		973,948		973,335
1.03%, 04/30/042		590,618		590,128
1.03%, 05/24/042		421,353		420,714
1.04%, 04/19/042		421,353		421,133
GIRO Funding US Corp.
1.05%, 05/19/042		421,353		420,763
Jupiter Securitization Corp.
1.03%, 04/16/042		1,685,410		1,684,687
1.03%, 04/19/042		2,275,304		2,274,132
1.03%, 04/28/042		1,011,246		1,010,465
1.03%, 04/30/042		1,435,548		1,434,357
Liberty Street Funding Corp.
1.04%, 04/08/042		590,500		590,381
1.05%, 04/05/042		682,591		682,512

SCHEDULES OF INVESTMENTS 43

Schedule of Investments (Continued)

iSHARES^® RUSSELL 1000 VALUE INDEX FUND

March 31, 2004

Security	Principal		Value
Polonius Inc.
1.04%, 05/21/042	$	975,010	$	973,602
Preferred Receivables Funding Corp.
1.03%, 04/19/042		1,769,681		1,768,770
1.04%, 04/23/042		1,938,222		1,936,990
1.04%, 05/20/042		421,353		420,756
Receivables Capital Corp.
1.04%, 04/14/042		741,581		741,302
Scaldis Capital LLC
1.05%, 06/30/042		603,377		601,793
Thames Asset Global Securitization No. 1 Inc.
1.03%, 04/19/042		842,705		842,271
Thunder Bay Funding Inc.
1.03%, 04/19/042		536,045		535,769
1.04%, 04/29/042		759,109		758,495
				37,768,253
TIME DEPOSITS – 1.19%
Abbey National Treasury Services PLC
1.08%, 04/01/042		5,898,936		5,898,936
1.33%, 02/10/052		842,705		842,596
1.39%, 02/02/052		842,705		842,599
1.40%, 10/25/042		1,685,410		1,685,267
Bank of New York
1.39%, 11/01/042		1,685,410		1,685,312
Bank of Nova Scotia
1.24%, 10/07/042		1,264,058		1,263,992
1.42%, 10/29/042		1,264,058		1,264,113
Canadian Imperial Bank of Commerce
1.24%, 10/07/042		1,264,058		1,263,959
1.38%, 11/22/042		421,353		421,373
1.40%, 10/29/042		1,685,410		1,685,386
National City Bank (Cleveland, Ohio)
1.02%, 04/01/042		2,528,116		2,528,116
Toronto-Dominion Bank
1.04%, 06/22/042		421,353		421,353
1.22%, 03/23/052		2,949,468		2,948,964
1.34%, 02/10/052		674,164		674,077
1.41%, 11/01/042		1,264,058		1,263,984
UBS Finance (Delaware)
1.06%, 04/01/042		3,370,821		3,370,821
1.10%, 09/08/042		1,685,409		1,677,171
1.11%, 12/17/042		2,528,113		2,507,848
				32,245,867
REPURCHASE AGREEMENTS – 0.37%
Bank of America, NA
1.06%, 04/01/042		3,370,821		3,370,821
Goldman, Sachs & Co.
1.08%, 04/01/042		6,741,641		6,741,641
				10,112,462
U.S. GOVERNMENT AGENCY NOTES – 0.15%
Federal Home Loan Mortgage Corporation
1.15%, 05/12/042		1,264,058		1,262,402
1.28%, 08/19/042		674,164		670,808
Federal National Mortgage Association
1.28%, 08/20/042		2,191,033		2,180,049
				4,113,259
TOTAL SHORT-TERM INVESTMENTS (Cost: $213,531,615)				213,531,615
TOTAL INVESTMENTS IN SECURITIES–107.80% (Cost: $2,685,446,876)				2,917,697,420
Other Assets, Less Liabilities – (7.80%)				(211,004,110	)
NET ASSETS – 100.00%			$	2,706,693,310

¹ Non-income earning securities.

² All or a portion of this security represents investments of securities lending collateral.

³ Issuer is an affiliate of the Fund’s investment advisor. See Note 2.

⁴ Security exempt from registration under Rule 144A of the Securities Act of 1933.

These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

See notes to financial statements.

44 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® RUSSELL 2000 INDEX FUND

March 31, 2004

Security	Shares	Value
COMMON STOCKS – 99.93%
Louisiana-Pacific Corp.	586,679	$	15,136,318
Andrew Corp.1	828,357		14,496,248
Conexant Systems Inc.1	2,314,548		14,257,616
Cytyc Corp.1	628,904		13,993,114
MGI Pharma Inc.1	196,555		12,040,959
Ventas Inc.	437,190		12,013,981
Covance Inc.1	344,722		11,872,226
Activision Inc.1	739,368		11,696,802
Standard-Pacific Corp.	189,801		11,388,060
Health Care REIT Inc.	276,205		11,213,923
AMR Corp.1	877,310		11,168,156
NBTY Inc.1	288,886		10,740,781
AnnTaylor Stores Corp.1	250,181		10,707,747
Fremont General Corp.	341,562		10,451,797
Allmerica Financial Corp.1	298,315		10,306,783
Sybase Inc.1	488,861		10,261,192
Accredo Health Inc.1	267,971		10,209,695
Dade Behring Holdings Inc.1	224,673		9,993,455
Cooper Companies Inc.	185,021		9,991,134
BJ’s Wholesale Club Inc.1	388,706		9,892,568
Allegheny Energy Inc.1	710,196		9,736,787
Pacific Sunwear of California Inc.1	396,427		9,728,319
Skyworks Solutions Inc.1	833,571		9,719,438
South Financial Group Inc. (The)	325,811		9,640,747
Oshkosh Truck Corp.	169,837		9,459,921
UCBH Holdings Inc.	234,890		9,404,996
Impac Mortgage Holdings Inc.	344,282		9,364,470
TECHNE Corp.1	228,653		9,331,329
Terex Corp.1	245,230		9,066,153
Titan Corp. (The)1	448,397		9,053,135
Zale Corp.1	145,848		8,976,944
SL Green Realty Corp.	187,748		8,955,580
Reckson Associates Realty Corp.	317,145		8,924,460
Gen-Probe Inc.1	267,069		8,922,775
Alliance Gaming Corp.1	276,853		8,895,287
Affiliated Managers Group Inc.1	162,973		8,895,066
Hyperion Solutions Corp.1	213,934		8,867,564
AmerUs Group Co.	219,205		8,844,922
Hughes Supply Inc.	167,836		8,794,606
Patina Oil & Gas Corp.	334,698		8,785,823
Linens ‘n Things Inc.1	247,441		8,761,886
York International Corp.	222,456		8,744,745
First Industrial Realty Trust Inc.	220,147		8,695,806
IMC Global Inc.	607,810		8,691,683
Crown Holdings Inc.1	925,005		8,621,047
Greater Bay Bancorp	291,260		8,519,355
Toro Co.	137,279		8,511,298
Take-Two Interactive Software Inc.1	230,923		8,493,348
FMC Corp.1	197,448		8,454,723
Brink’s Co. (The)	304,356		8,394,138
INAMED Corp.1	156,993		8,364,587
OSI Pharmaceuticals Inc.1	217,336		8,345,702
Pediatrix Medical Group Inc.1	132,235		8,330,805
Copart Inc.1	381,240		8,284,345
Evergreen Resources Inc.1	239,757		8,235,653
Plantronics Inc.1	224,931		8,234,724
Briggs & Stratton Corp.	121,322		8,185,595
Nationwide Health Properties Inc.	367,298		8,179,726
Vitesse Semiconductor Corp.1	1,153,172		8,175,989
Roper Industries Inc.	169,321		8,169,738
RF Micro Devices Inc.1	964,169		8,156,870
Arch Coal Inc.	258,561		8,116,230
Couer d’Alene Mines Corp.1	1,157,178		8,100,246
Energen Corp.	195,978		8,084,092
Corn Products International Inc.	202,009		8,080,360
Martek Biosciences Corp.1	141,374		8,058,318
Novastar Financial Inc.	121,225		7,994,789
Western Wireless Corp. Class A1	340,507		7,957,649
Joy Global Inc.	282,893		7,940,807
Citizens Banking Corp.	242,723		7,920,051
American Eagle Outfitters Inc.1	292,971		7,898,498
Cymer Inc.1	203,887		7,872,077
American Greetings Corp. Class A1	345,715		7,871,931
Westar Energy Inc.	375,349		7,867,315
Highwoods Properties Inc.	300,042		7,864,101
Pep Boys-Manny, Moe & Jack Inc.	283,118		7,856,525
NII Holdings Inc. Class B1	222,586		7,797,188
Beazer Homes USA Inc.	73,397		7,773,476
Onyx Pharmaceuticals Inc.1	191,989		7,767,875
Extended Stay America Inc.	399,835		7,744,804
Avid Technology Inc.1	167,298		7,717,457

SCHEDULES OF INVESTMENTS 45

Schedule of Investments (Continued)

iSHARES^® RUSSELL 2000 INDEX FUND

March 31, 2004

Security	Shares	Value
Kennametal Inc.	186,622	$	7,701,890
Tom Brown Inc.1	204,803		7,700,593
Alexander & Baldwin Inc.	232,202		7,681,242
Pacific Capital Bancorp	192,866		7,650,994
CMS Energy Corp.1	850,597		7,612,843
Massey Energy Co.	344,798		7,609,692
Akamai Technologies Inc.1	576,510		7,575,341
Medicines Co. (The)1	233,910		7,534,241
Yellow Roadway Corp.1	223,441		7,523,259
Semtech Corp.1	329,460		7,521,572
Sonic Corp.1	217,089		7,441,811
Ask Jeeves Inc.1	207,990		7,431,483
Staten Island Bancorp Inc.	297,525		7,402,422
Cooper Tire & Rubber Co.	366,863		7,392,289
Home Properties Inc.	180,670		7,362,303
Cathay General Bancorp	111,344		7,328,662
W Holding Co. Inc.	389,609		7,281,792
OmniVision Technologies Inc.1	265,430		7,248,893
New Century Financial Corp.	149,150		7,242,724
Prentiss Properties Trust	195,771		7,223,950
Goodyear Tire & Rubber Co. (The)1	845,797		7,223,106
United Stationers Inc.1	171,350		7,213,835
Benchmark Electronics Inc.1	228,137		7,181,753
Cerner Corp.1	158,702		7,171,743
Nektar Therapeutics1	332,287		7,170,753
Atmos Energy Corp.	279,954		7,158,424
P.F. Chang’s China Bistro Inc.1	141,865		7,137,228
Ascential Software Corp.1	325,340		7,131,453
Dycom Industries Inc.1	268,550		7,121,946
East West Bancorp Inc.	126,915		7,107,240
Phoenix Companies Inc.	528,092		7,081,714
Universal Corp.	139,320		7,080,242
Varian Semiconductor Equipment Associates Inc.1	168,003		7,056,126
GrafTech International Ltd.1	470,559		7,034,857
Visteon Corp.	733,287		7,017,557
Callaway Golf Co.	369,062		7,004,797
Washington Real Estate Investment Trust	215,556		6,994,792
Hot Topic Inc.1	264,402		6,993,433
Corrections Corp. of America1	196,384		6,991,270
Strayer Education Inc.	59,761		6,990,244
KEMET Corp.1	483,649		6,935,527
CACI International Inc. Class A1	161,125		6,928,375
Sylvan Learning Systems Inc.1	195,839		6,875,907
Perrigo Co.	342,750		6,872,138
Charter Communications Inc. Class A1	1,454,299		6,849,748
LifePoint Hospitals Inc.1	210,150		6,796,251
La Quinta Corp.1	901,303		6,795,825
Ligand Pharmaceuticals Inc. Class B1	337,466		6,783,067
Hilb, Rogal & Hamilton Co.	177,342		6,756,730
Mentor Graphics Corp.1	378,149		6,738,615
Cimarex Energy Co.1	232,900		6,730,810
Idex Corp.	154,767		6,729,269
Arbitron Inc.1	166,986		6,722,856
Alexandria Real Estate Equities Inc.	106,619		6,716,997
Tularik Inc.1	272,837		6,698,148
Flir Systems Inc.1	175,031		6,672,182
Quiksilver Inc.1	304,420		6,651,577
Invacare Corp.	147,175		6,643,480
Urban Outfitters Inc.1	137,759		6,620,698
MAF Bancorp Inc.	152,272		6,617,741
Essex Property Trust Inc.	100,987		6,614,648
Dillards Inc. Class A	345,211		6,614,243
Varian Inc.1	164,218		6,596,637
PNM Resources Inc.	219,464		6,594,893
Community First Bankshares Inc.	204,266		6,565,109
Abgenix Inc.1	493,206		6,554,708
Mueller Industries Inc.	192,217		6,533,456
Mentor Corp.	215,388		6,483,179
Trimble Navigation Ltd.1	280,843		6,439,730
Gateway Inc.1	1,216,287		6,421,995
CEC Entertainment Inc.1	184,726		6,409,992
Olin Corp.	358,987		6,407,918
IDACORP Inc.	214,288		6,407,211
Pennsylvania Real Estate Investment Trust	169,476		6,382,466
Bob Evans Farms Inc.	196,612		6,378,093
Commercial Federal Corp.	229,972		6,347,227
Landstar System Inc.1	154,620		6,330,143

46 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 2000 INDEX FUND

March 31, 2004

Security	Shares	Value
Tractor Supply Co.1	163,272	$	6,321,892
Cognex Corp.	190,111		6,321,191
Forest Oil Corp.1	250,076		6,314,419
Waste Connections Inc.1	158,392		6,304,002
Stone Energy Corp.1	126,831		6,273,061
SCP Pool Corp.1	167,707		6,248,763
Commerce Group Inc.	129,841		6,232,368
Ohio Casualty Corp.1	311,306		6,223,007
SkyWest Inc.	323,401		6,222,235
Taubman Centers Inc.	246,708		6,209,640
Chittenden Corp.	187,853		6,199,149
CLARCOR Inc.	139,830		6,173,494
Axcelis Technologies Inc.1	552,021		6,138,474
AMERIGROUP Corp.1	134,226		6,134,128
CharterMac	246,851		6,116,968
Banta Corp.	132,079		6,113,937
Eagle Materials Inc.	103,556		6,094,271
Tesoro Petroleum Corp.1	324,081		6,089,482
First Niagara Financial Group Inc.	446,085		6,089,060
Electronics For Imaging Inc.1	247,269		6,075,399
Panera Bread Co. Class A1	156,018		6,072,221
VCA Antech Inc.1	169,673		6,045,449
Tetra Tech Inc.1	281,245		6,035,518
Potlatch Corp.	146,873		5,985,075
Southwest Bancorp of Texas Inc.	158,557		5,982,356
Emmis Communications Corp.1	248,866		5,925,499
Southern Union Co.1	311,345		5,899,988
Vicuron Pharmaceuticals Inc.1	259,162		5,895,936
MPS Group Inc.1	528,967		5,882,113
Unit Corporation1	213,983		5,867,414
Applera Corp. – Celera Genomics Group1	404,107		5,863,593
EarthLink Inc.1	661,228		5,858,480
CNET Networks Inc.1	566,789		5,854,930
Gables Residential Trust	161,345		5,848,756
Sybron Dental Specialties Inc.1	214,070		5,833,408
Hercules Inc.1	507,505		5,826,157
Delphi Financial Group Inc. Class A	137,631		5,783,255
Kellwood Co.	147,274		5,780,505
Silicon Storage Technology Inc.1	446,083		5,772,314
Alkermes Inc.1	360,587		5,765,786
New Jersey Resources Corp.	152,185		5,752,593
Black Hills Corp.	179,899		5,733,381
Newcastle Investment Corp.	170,016		5,729,539
Telik Inc.1	213,325		5,725,643
Susquehanna Bancshares Inc.	222,588		5,704,930
PETCO Animal Supplies Inc.1	200,920		5,661,926
TrustCo Bank Corp. NY	417,874		5,624,584
Lexar Media Inc.1	338,379		5,603,556
Texas Regional Bancshares Inc. Class A	131,531		5,596,644
Unova Inc.1	258,145		5,578,513
Minerals Technologies Inc.	97,473		5,565,708
Acuity Brands Inc.	232,926		5,562,273
Maverick Tube Corp.1	235,028		5,534,909
InfoSpace Inc.1	142,276		5,530,268
Flowserve Corp.1	263,696		5,524,431
Hecla Mining Co.1	656,423		5,520,517
Allegheny Technologies Inc.	454,238		5,496,280
Trinity Industries Inc.	197,315		5,485,357
Capital Automotive	154,857		5,468,001
Perot Systems Corp. Class A1	410,990		5,466,167
TriQuint Semiconductor Inc.1	747,325		5,455,473
Kroll Inc.1	202,387		5,434,091
Parametric Technology Corp.1	1,200,316		5,425,428
Kronos Inc.1	166,639		5,420,767
ADVO Inc.	167,663		5,402,102
Wolverine World Wide Inc.	223,822		5,400,825
Senior Housing Properties Trust	276,965		5,400,818
F5 Networks Inc.1	159,426		5,396,570
Brandywine Realty Trust	176,316		5,386,454
Thor Industries Inc.	200,477		5,384,812
Nordson Corp.	143,587		5,378,769
Wintrust Financial Corp.	110,569		5,376,970
Silicon Valley Bancshares1	165,442		5,366,938
FileNET Corp.1	200,753		5,350,067
Post Properties Inc.	185,670		5,347,296
Federal Signal Corp.	269,197		5,343,560
R&G Financial Corp. Class B	154,136		5,323,857
Payless ShoeSource Inc.1	381,365		5,323,855
Millennium Chemicals Inc.	356,196		5,321,568

SCHEDULES OF INVESTMENTS 47

Schedule of Investments (Continued)

iSHARES^® RUSSELL 2000 INDEX FUND

March 31, 2004

Security	Shares	Value
NDCHealth Corp.	195,456	$	5,306,630
Matthews International Corp. Class A	159,784		5,304,829
United Rentals Inc.1	298,296		5,300,720
US Oncology Inc.1	358,484		5,298,394
Selective Insurance Group Inc.	150,873		5,291,116
Adaptec Inc.1	601,582		5,269,858
Fred’s Inc.	216,670		5,258,581
RSA Security Inc.1	279,511		5,252,012
Delta & Pine Land Co.	210,120		5,242,494
Thomas & Betts Corp.	239,455		5,224,908
Steel Dynamics Inc.1	210,605		5,218,792
Rayovac Corp.1	182,131		5,208,947
Ferro Corp.	199,147		5,207,694
Jarden Corp.1	146,508		5,202,499
Tupperware Corp.	291,779		5,196,584
Donnelley (R.H.) Corp.1	111,197		5,192,900
Albemarle Corp.	178,909		5,188,361
GATX Corp.	234,016		5,188,135
USF Corp.	151,580		5,187,068
Owens & Minor Inc.	204,834		5,182,300
Scientific Games Corp. Class A1	276,452		5,175,181
United Natural Foods Inc.1	107,442		5,166,886
Brookline Bancorp Inc.	323,237		5,155,630
Knight Trading Group Inc.1	407,041		5,153,139
ILEX Oncology Inc.1	215,085		5,144,833
Washington Group International Inc.1	140,263		5,135,028
Kilroy Realty Corp.	144,604		5,133,442
Avista Corp.	270,474		5,117,368
Gartner Inc. Class A1	438,132		5,104,238
Brooks Automation Inc.1	242,753		5,092,958
CAL Dive International Inc.1	196,779		5,082,802
Lincoln Electric Holding Inc.	180,551		5,082,511
Navigant Consulting Co.1	250,800		5,073,684
CMGI Inc.1	2,070,797		5,073,453
Philadelphia Consolidated Holding Corp.1	87,361		5,066,938
Airtran Holdings Inc.1	425,719		5,057,542
LTX Corp.1	333,846		5,041,075
CSG Systems International Inc.1	293,321		5,039,255
Engineered Support Systems Inc.	103,066		5,028,590
MacDermid Inc.	142,372		5,010,071
Cost Plus Inc.1	119,976		5,008,998
Spinnaker Exploration Co.1	138,774		4,984,762
Insight Enterprises Inc.1	258,861		4,983,074
NPS Pharmaceuticals Inc.1	174,459		4,980,804
Seacoast Financial Services Corp.	148,585		4,977,598
Provident Financial Services Inc.	265,860		4,968,923
Penn National Gaming Inc.1	172,681		4,968,032
Moog Inc. Class A1	145,191		4,953,917
Lattice Semiconductor Corp.1	567,407		4,953,463
Diagnostic Products Corp.	114,284		4,948,497
Dionex Corp.1	93,475		4,935,480
Ralcorp Holdings Inc.1	162,135		4,933,768
Anixter International Inc.	174,569		4,931,574
American Home Mortgage Investment Corp.	171,023		4,925,462
Choice Hotels International Inc.	110,054		4,923,816
Intergraph Corp.1	202,858		4,905,106
Commercial Net Lease Realty Inc.	248,087		4,899,718
First Commonwealth Financial Corp.	331,059		4,893,052
Resources Connection Inc.1	110,503		4,875,282
Sierra Pacific Resources1	657,211		4,863,361
Aquila Inc.1	1,031,786		4,859,712
Men’s Wearhouse Inc. (The)1	182,714		4,854,711
Harland (John H.) Co.	155,934		4,852,666
Nabi Biopharmaceuticals1	311,996		4,851,538
Great Lakes Chemical Corp.	203,194		4,846,177
OM Group Inc.1	159,090		4,836,336
Cumulus Media Inc. Class A1	241,152		4,820,628
Black Box Corp.	89,918		4,818,706
CommScope Inc.1	289,403		4,818,560
Southwestern Energy Co.1	199,358		4,808,515
Kansas City Southern Industries Inc.1	345,885		4,807,802
Aeroflex Inc.1	356,704		4,801,236
CONMED Corp.1	162,396		4,797,178
InVision Technologies Inc.1	96,294		4,782,923
Rogers Corp.1	89,454		4,774,160
Jack in the Box Inc.1	191,014		4,769,620

48 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 2000 INDEX FUND

March 31, 2004

Security	Shares	Value
Chemical Financial Corp.	132,917	$	4,767,733
Openwave Systems Inc.1	356,609		4,757,164
Sierra Health Services Inc.1	130,635		4,755,114
St. Mary Land & Exploration Co.	142,198		4,753,679
BankUnited Financial Corp. Class A1	159,938		4,750,159
Tekelec1	285,606		4,738,204
Reliance Steel & Aluminum Co.	134,569		4,730,100
Inveresk Research Group Inc.1	166,198		4,723,347
Cleco Corp.	247,937		4,718,241
Align Technology Inc.1	247,982		4,714,138
Georgia Gulf Corp.	156,298		4,712,385
LandAmerica Financial Group Inc.	104,003		4,707,176
Commonwealth Telephone Enterprises Inc.1	114,708		4,704,175
Transaction Systems Architects Inc. Class A1	203,153		4,700,960
Redwood Trust Inc.	75,591		4,699,492
Watson Wyatt & Co. Holdings1	186,004		4,694,741
Glimcher Realty Trust	172,685		4,679,763
AtheroGenics Inc.1	204,411		4,674,880
Hollinger International Inc.	235,364		4,660,207
UMB Financial Corp.	91,912		4,659,938
ProAssurance Corp.1	133,060		4,657,100
Actuant Corp. Class A1	118,616		4,653,306
Hancock Holding Co.	150,187		4,649,790
Flowers Foods Inc.	176,408		4,628,946
Continental Airlines Inc. Class B1	368,838		4,621,540
Entertainment Properties Trust	112,909		4,619,107
Rare Hospitality International Inc.1	165,560		4,594,290
Waypoint Financial Corp.	171,274		4,593,569
Select Medical Corp.	274,935		4,591,415
Lennox International Inc.	245,955		4,562,465
Keane Inc.1	289,780		4,561,137
American Management Systems Inc.1	236,823		4,547,002
Argosy Gaming Co.1	127,822		4,544,072
Sports Authority Inc. (The)1	113,122		4,533,930
Fuller (H.B.) Co.	159,241		4,528,814
Wind River Systems Inc.1	407,968		4,516,206
Fossil Inc.1	135,387		4,515,156
Yankee Candle Co. Inc. (The)1	163,487		4,508,971
Northwest Natural Gas Co.	143,986		4,499,563
Commercial Metals Co.	140,922		4,486,956
Sonus Networks Inc.1	1,206,998		4,477,963
Jones Lang LaSalle Inc.1	174,058		4,475,031
Republic Bancorp Inc.	317,425		4,462,996
KV Pharmaceuticals Co.1	181,402		4,455,233
Charming Shoppes Inc.1	571,793		4,454,267
Microsemi Corp.1	324,762		4,442,744
S&T Bancorp Inc.	147,729		4,440,734
Superior Industries International Inc.	125,268		4,439,498
Headwaters Inc.1	173,277		4,439,357
Lexington Corp. Properties Trust	203,400		4,432,086
PalmOne Inc.1	207,356		4,429,124
MICROS Systems Inc.1	97,799		4,415,625
Power Integrations Inc.1	150,479		4,413,549
FirstFed Financial Corp.1	95,252		4,393,975
Manitowoc Co. Inc. (The)	148,202		4,383,815
Cincinnati Bell Inc.1	1,075,724		4,378,197
Granite Construction Inc.	183,673		4,365,907
Dick’s Sporting Goods Inc.1	75,073		4,364,744
Cabot Microelectronics Corp.1	103,247		4,361,153
NetFlix Inc.1	127,294		4,343,271
Curtiss-Wright Corp.	92,653		4,342,646
Shuffle Master Inc.1	93,333		4,339,051
Coherent Inc.1	164,485		4,324,311
Saxon Capital Inc.1	151,958		4,317,127
Trust Co. of New Jersey (The)	103,945		4,314,757
THQ Inc.1	213,276		4,314,574
eFunds Corp.1	262,317		4,301,999
Cabot Oil & Gas Corp.	140,699		4,299,761
Macrovision Corp.1	229,946		4,295,391
Texas Industries Inc.	118,170		4,271,846
PSS World Medical Inc.1	380,828		4,261,465
Alpharma Inc. Class A	217,102		4,257,370
Corporate Office Properties Trust	170,219		4,255,475
Ariba Inc.1	1,506,069		4,247,115
Technitrol Inc.1	225,443		4,238,328
CVB Financial Corp.	203,441		4,223,435
eResearch Technology Inc.1	150,533		4,222,451

SCHEDULES OF INVESTMENTS 49

Schedule of Investments (Continued)

iSHARES^® RUSSELL 2000 INDEX FUND

March 31, 2004

Security	Shares	Value
Liberty Corp.	91,127	$	4,216,446
First Citizens BancShares Inc. Class A	34,242		4,211,766
Flagstar Bancorp Inc.	163,983		4,206,164
Credence Systems Corp.1	354,042		4,206,019
Micrel Inc.1	314,219		4,194,824
NetIQ Corp.1	299,508		4,181,132
ValueClick Inc.1	386,750		4,176,900
Catalina Marketing Corp.1	215,229		4,173,290
Plains Exploration & Production Co.1	223,501		4,166,059
Christopher & Banks Corp.	197,287		4,164,729
WebEx Communications Inc.1	140,016		4,162,676
VISX Inc.1	213,098		4,159,673
AMCORE Financial Inc.	139,426		4,153,501
Exar Corp.1	224,440		4,152,140
Sensient Technologies Corp.	222,353		4,151,331
Priority Healthcare Corp. Class B1	193,873		4,127,556
Casey’s General Store Inc.	248,519		4,125,415
SafeNet Inc.1	109,765		4,120,574
Kos Pharmaceuticals Inc.1	101,114		4,119,384
Boyd Gaming Corp.	179,655		4,112,303
DSP Group Inc.1	159,605		4,106,637
Impax Laboratories Inc.1	183,566		4,106,371
Crompton Corp.	641,698		4,094,033
NBT Bancorp Inc.	181,900		4,092,750
Province Healthcare Co.1	257,263		4,090,482
Six Flags Inc.1	519,662		4,079,347
Simpson Manufacturing Co. Inc.1	83,318		4,078,416
Aeropostale Inc.1	112,403		4,075,733
Vintage Petroleum Inc.	277,507		4,068,253
Winnebago Industries Inc.	130,303		4,061,545
Vertex Pharmaceuticals Inc.1	430,406		4,054,425
Wilson Greatbatch Technologies Inc.1	111,617		4,049,465
Ryan’s Family Steak Houses Inc.1	236,410		4,044,975
Provident Bankshares Corp.	128,854		4,043,439
Hollywood Entertainment Corp.1	298,159		4,043,036
Sterling Financial Corp. (Washington)1	109,341		4,033,589
Chiquita Brands International Inc.1	193,026		4,024,592
Too Inc.1	191,590		4,013,811
Silicon Image Inc.1	389,372		4,010,532
Littelfuse Inc.1	107,801		4,010,197
Albany International Corp. Class A	149,044		4,007,793
Colonial Properties Trust	98,140		4,004,112
Plexus Corp.1	224,895		4,000,882
BankAtlantic Bancorp Inc. Class A	235,873		4,000,406
Southwest Gas Corp.	170,880		3,998,592
United Online Inc.1	239,632		3,992,269
Kaydon Corp.	144,914		3,989,482
Advanced Medical Optics Inc.1	162,736		3,970,758
CH Energy Group Inc.	80,664		3,959,796
ATMI Inc.1	150,331		3,956,712
Advanced Digital Information Corp.1	347,491		3,954,448
Zoran Corp.1	227,487		3,949,174
Jacuzzi Brands Inc.1	420,420		3,943,540
Stewart Enterprises Inc. Class A1	541,698		3,938,144
Power-One Inc.1	355,748		3,934,573
Seacor Holdings Inc.1	95,651		3,929,343
UniSource Energy Corp.	159,642		3,922,404
RLI Corp.	101,616		3,922,378
Grey Wolf Inc.1	944,627		3,910,756
Extreme Networks Inc.1	541,412		3,903,581
Warnaco Group Inc. (The)1	194,170		3,900,875
USEC Inc.	460,733		3,893,194
ProQuest Co.1	133,353		3,889,907
Aztar Corp.1	158,252		3,878,757
Arrow International Inc.	129,530		3,871,652
Stillwater Mining Co.1	246,569		3,871,133
Quanex Corp.	91,054		3,868,884
Heartland Express Inc.	169,736		3,866,586
FTI Consulting Inc.1	231,136		3,850,726
National Penn Bancshares Inc.	122,095		3,849,655
TIBCO Software Inc.1	470,795		3,846,395
Oceaneering International Inc.1	126,203		3,842,881
National Health Investors Inc.	124,434		3,832,567
WMS Industries Inc.1	123,511		3,828,841
Monaco Coach Corp.	142,808		3,827,254
Sonic Automotive Inc.	152,783		3,827,214
Imagistics International Inc.1	86,840		3,825,302
DRS Technologies Inc.1	136,704		3,824,978

50 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 2000 INDEX FUND

March 31, 2004

Security	Shares	Value
Magnum Hunter Resources Inc.1	377,120	$	3,823,997
IHOP Corp.	111,033		3,823,977
Connetics Corp.1	172,381		3,821,687
Tecumseh Products Co. Class A	90,623		3,815,228
El Paso Electric Co.1	275,507		3,813,017
Otter Tail Corp.	144,105		3,807,254
Brady Corp. Class A	99,600		3,792,768
ABM Industries Inc.	211,169		3,790,484
Corvis Corp.1	1,973,138		3,788,425
Viasys Healthcare Inc.1	167,459		3,787,923
Genlyte Group Inc. (The)1	67,534		3,784,605
Armor Holdings Inc.1	114,276		3,782,536
Harmonic Inc.1	391,829		3,781,150
Sycamore Networks Inc.1	926,154		3,778,708
Sola International Inc.1	162,360		3,774,870
Baldor Electric Co.	164,204		3,773,408
Champion Enterprises Inc.1	355,761		3,771,067
Meritage Corp.1	50,779		3,770,341
MB Financial Inc.	96,672		3,769,241
Investment Technology Group Inc.1	246,211		3,767,028
Enzon Pharmaceuticals Inc.1	243,835		3,762,374
Entegris Inc.1	296,149		3,749,246
Progress Software Corp.1	155,523		3,730,997
CUNO Inc.1	83,070		3,728,182
Westcorp Inc.	84,454		3,721,888
Symyx Technologies Inc.1	129,949		3,721,739
Harleysville National Corp.	133,418		3,713,023
Medarex Inc.1	413,537		3,709,427
Ruddick Corp.	183,150		3,706,956
Shaw Group Inc. (The)1	341,112		3,697,654
Stewart Information Services Corp.	93,820		3,687,126
Alabama National Bancorp	66,335		3,682,919
Carpenter Technology Corp.	111,988		3,682,165
Electro Scientific Industries Inc.1	156,177		3,676,407
Internet Security Systems Inc.1	208,406		3,676,282
Advanced Neuromodulation Systems Inc.1	101,816		3,674,539
MFA Mortgage Investments Inc.	362,662		3,662,886
Checkpoint Systems Inc.1	193,595		3,658,945
Summit Properties Inc.	153,136		3,652,294
United Community Banks Inc.	102,386		3,649,037
Finish Line Inc. (The)1	98,626		3,647,189
Therasense Inc.1	135,071		3,641,514
RAIT Investment Trust	123,210		3,640,856
Boston Private Financial Holdings Inc.	129,940		3,638,320
Journal Register Co.1	174,028		3,637,185
Brown Shoe Co. Inc.	99,694		3,631,852
CARBO Ceramics Inc.	57,644		3,628,690
Newport Corp.1	216,975		3,627,822
Cash America International Inc.	157,075		3,620,579
Landry’s Restaurants Inc.	121,277		3,617,693
Grey Global Group Inc.	5,228		3,607,320
Borland Software Corp.1	397,058		3,605,289
Quest Software Inc.1	220,363		3,602,935
Hutchinson Technology Inc.1	128,263		3,599,060
USG Corp.1	205,275		3,590,260
EastGroup Properties Inc.	101,108		3,589,334
American Healthways Inc.1	146,917		3,587,713
Veeco Instruments Inc.1	127,840		3,585,912
Digital Insight Corp.1	173,044		3,585,472
Veritas DGC Inc.1	172,574		3,572,282
Digital River Inc.1	152,594		3,572,226
NeighborCare Inc.1	147,267		3,571,225
Lin TV Corp. Class A1	149,891		3,568,905
Range Resources Corp.	293,756		3,563,260
Price Communications Corp.1	226,661		3,556,311
Helix Technology Corp.	146,475		3,552,019
G&K Services Inc. Class A	95,414		3,551,309
Overseas Shipholding Group Inc.	97,242		3,549,333
Heritage Property Investment Trust Inc.	113,408		3,526,989
Ionics Inc.1	124,122		3,525,065
MKS Instruments Inc.1	146,755		3,523,588
Mid-America Apartment Communities Inc.	94,809		3,520,258
Hanover Compressor Co.1	290,811		3,515,905
First Charter Corp.	166,969		3,514,697
Hudson River Bancorp Inc.	170,260		3,507,356
Kirby Corp.1	103,439		3,495,204
Corus Bankshares Inc.	86,751		3,495,198
Dime Community Bancshares	171,093		3,481,743

SCHEDULES OF INVESTMENTS 51

Schedule of Investments (Continued)

iSHARES^® RUSSELL 2000 INDEX FUND

March 31, 2004

Security	Shares	Value
Mindspeed Technologies Inc.1	532,806	$	3,479,223
JLG Industries Inc.	241,330		3,451,019
Horace Mann Educators Corp.	219,498		3,450,509
Northwest Airlines Corp.1	341,000		3,447,510
Spartech Corp.	138,273		3,442,998
PolyOne Corp.1	514,622		3,422,236
Houston Exploration Co.1	76,473		3,420,637
Integrated Silicon Solution Inc.1	192,638		3,417,398
Anthracite Capital Inc.	268,300		3,415,459
Keystone Property Trust	140,147		3,406,974
Spherion Corp.1	332,696		3,403,480
Harbor Florida Bancshares Inc.	117,562		3,402,244
Manhattan Associates Inc.1	122,309		3,400,190
Wabash National Corp.1	144,000		3,398,400
Select Comfort Corp.1	123,048		3,394,894
Modine Manufacturing Co.	130,157		3,391,891
Sovran Self Storage Inc.	81,083		3,386,837
Odyssey Healthcare Inc.1	179,427		3,382,199
Anworth Mortgage Asset Corp.	242,255		3,381,880
CSK Auto Corp.1	186,458		3,376,754
Teledyne Technologies Inc.1	180,539		3,376,079
AmSurg Corp.1	148,335		3,368,677
First Financial Bancorp	181,744		3,362,264
Roto-Rooter Inc.	66,452		3,359,149
Advent Software Inc.1	179,449		3,355,696
IDX Systems Corp.1	96,786		3,348,796
PS Business Parks Inc.	72,224		3,347,582
Incyte Corp.1	402,181		3,342,124
Thoratec Corp.1	267,580		3,342,074
Comstock Resources Inc.1	168,173		3,341,598
American Italian Pasta Co. Class A	83,680		3,341,342
Cleveland-Cliffs Inc.1	51,029		3,338,827
Kindred Healthcare Inc.1	66,159		3,327,798
Aaron Rents Inc.	133,612		3,325,603
Nuevo Energy Co.1	102,075		3,323,562
Group 1 Automotive Inc.1	91,732		3,320,698
Pixelworks Inc.1	193,369		3,312,411
K-Swiss Inc. Class A	135,254		3,309,665
ANSYS Inc.1	83,118		3,303,109
Sun Communities Inc.	77,016		3,297,825
Net.B@nk Inc.	269,163		3,286,480
Integra LifeSciences Holdings Corp.1	107,129		3,280,290
United Surgical Partners International Inc.1	96,547		3,276,805
Beverly Enterprises Inc.1	511,787		3,275,437
Gray Television Inc.	223,832		3,272,424
Kulicke & Soffa Industries Inc.1	279,071		3,270,712
Websense Inc.1	110,270		3,265,095
Knight Transportation Inc.1	136,157		3,265,045
Arkansas Best Corp.	121,830		3,263,826
Alaska Air Group Inc.1	131,991		3,254,898
WD-40 Co.	92,988		3,254,580
MTS Systems Corp.	117,572		3,253,217
School Specialty Inc.1	91,423		3,251,916
Schulman (A.) Inc.	165,405		3,250,208
Dollar Thrifty Automotive Group Inc.1	128,570		3,248,964
Orbital Sciences Corp.1	258,572		3,239,907
Denbury Resources Inc.1	192,159		3,239,801
Laclede Group Inc. (The)	106,844		3,237,373
Connecticut Bankshares Inc.	62,209		3,232,380
InterVoice-Brite Inc.1	191,417		3,229,205
Glacier Bancorp Inc.	100,127		3,229,096
Bowne & Co. Inc.	188,656		3,226,018
Informatica Corp.1	375,231		3,223,234
Gold Bancorp Inc.	197,692		3,222,380
Sotheby’s Holdings Inc. Class A1	250,130		3,214,171
Community Bank System Inc.	69,401		3,211,878
Oxford Industries Inc.	69,455		3,208,126
Umpqua Holdings Corp.	158,472		3,199,550
City Holding Co.	93,274		3,199,298
Longview Fibre Co.	286,631		3,198,802
MicroStrategy Inc. Class A1	59,881		3,191,657
AK Steel Holding Corp.1	543,670		3,191,343
Central Garden & Pet Co.1	88,623		3,190,428
Bandag Inc.	64,080		3,189,262
Stage Stores Inc.1	82,320		3,184,961
MAXIMUS Inc.1	90,946		3,183,110
Adolor Corp.1	211,461		3,178,259
EGL Inc.1	176,754		3,174,502
Woodward Governor Co.	49,683		3,166,794

52 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 2000 INDEX FUND

March 31, 2004

Security	Shares	Value
UIL Holdings Corp.	65,739	$	3,166,648
Equity One Inc.	164,147		3,154,905
Harleysville Group Inc.	169,190		3,150,318
Empire District Electric Co. (The)	138,997		3,148,282
Primus Telecommunications Group Inc.1	374,054		3,145,794
Longs Drug Stores Corp.	166,868		3,142,124
Nu Skin Enterprises Inc. Class A	155,813		3,139,632
Inter-Tel Inc.	104,354		3,136,881
Bright Horizons Family Solutions Inc.1	66,425		3,132,603
FuelCell Energy Inc.1	230,905		3,131,072
Arch Chemicals Inc.	110,782		3,127,376
Universal Compression Holdings Inc.1	94,950		3,123,855
CIBER Inc.1	283,625		3,119,875
Secure Computing Corp.1	190,772		3,119,122
Priceline.com Inc.1	115,647		3,117,843
S1 Corp.1	409,773		3,114,275
Mid-State Bancshares	131,665		3,113,877
Arris Group Inc.1	338,394		3,113,225
Transmeta Corp.1	784,174		3,105,329
ESCO Technologies Inc.1	67,258		3,101,939
Brookfield Homes Corp.	88,256		3,096,903
Independent Bank Corp. (Michigan)	111,055		3,093,992
UICI1	209,563		3,093,150
MCG Capital Corp.	152,767		3,084,366
Pilgrim’s Pride Corp.	137,069		3,074,458
MGE Energy Inc.	99,653		3,074,295
Pinnacle Systems Inc.1	340,006		3,070,254
Koger Equity Inc.	130,653		3,066,426
WesBanco Inc.	100,912		3,062,679
American Medical Systems Holdings Inc.1	115,529		3,061,518
Sunrise Senior Living Inc.1	85,337		3,059,331
First Financial Bankshares Inc.	76,317		3,058,022
Watsco Inc.	105,335		3,054,715
CoStar Group Inc.1	82,797		3,054,381
Sterling Financial Corp. (Pennsylvania)	118,754		3,053,165
South Jersey Industries Inc.	74,595		3,051,681
Multimedia Games Inc.1	123,024		3,043,614
Ocular Sciences Inc.1	104,252		3,038,946
Atrix Laboratories Inc.1	119,083		3,036,616
Labor Ready Inc.1	224,549		3,035,902
Mercury Computer Systems Inc.1	118,637		3,025,244
Mine Safety Appliances Co.	106,628		3,023,970
Anteon International Corp.1	104,498		3,018,947
Cornerstone Realty Income Trust Inc.	322,768		3,017,881
Unizan Financial Corp.	121,310		3,012,127
Centene Corp.1	98,038		2,998,982
FEI Co.1	137,081		2,995,220
Tenneco Automotive Inc.1	235,040		2,982,658
Griffon Corp.1	138,012		2,981,059
Handleman Co.	124,432		2,978,902
Sterling Bancshares Inc.	222,313		2,976,771
ElkCorp	109,601		2,969,091
Frontier Financial Corp.	86,329		2,968,854
WFS Financial Inc.	68,338		2,960,402
Sandy Spring Bancorp Inc.	81,398		2,953,119
Encysive Pharmaceuticals Inc.1	286,681		2,947,081
Cirrus Logic Inc.1	388,478		2,944,663
Florida East Coast Industries Inc.	82,055		2,939,210
Quantum Corp.1	792,784		2,933,301
Genesis Microchip Inc.1	175,013		2,933,218
Tetra Technologies Inc.1	111,959		2,925,489
Photon Dynamics Inc.1	89,644		2,925,084
BARRA Inc.	83,474		2,920,755
Guitar Center Inc.1	78,556		2,917,570
Cambrex Corp.	108,378		2,915,368
Wausau-Mosinee Paper Corp.	206,851		2,914,531
Silicon Graphics Inc.1	1,146,730		2,912,694
Quanta Services Inc.1	410,755		2,908,145
Esterline Technologies Corp.1	116,884		2,904,567
Salix Pharmaceuticals Ltd.1	100,079		2,904,293
Viasat Inc.1	116,683		2,903,073
Powerwave Technologies Inc.1	370,211		2,887,646
Harvest Natural Resources Inc.1	197,633		2,887,418
Aspect Communications Corp.1	184,081		2,884,549
Enterasys Networks Inc.1	1,139,990		2,884,175

SCHEDULES OF INVESTMENTS 53

Schedule of Investments (Continued)

iSHARES^® RUSSELL 2000 INDEX FUND

March 31, 2004

Security	Shares	Value
ScanSource Inc.1	60,146	$	2,883,399
PolyMedica Corp.	107,436		2,881,434
Gardner Denver Inc.1	105,888		2,867,447
LaSalle Hotel Properties	121,302		2,862,727
FelCor Lodging Trust Inc.1	274,353		2,858,758
Interstate Bakeries Corp.	251,424		2,858,691
Quicksilver Resources Inc.1	73,535		2,850,217
Korn/Ferry International1	178,008		2,848,128
Genta Inc.1	271,175		2,847,337
Hawthorne Financial Corp.1	64,678		2,845,185
Frontier Oil Corp.	146,657		2,842,213
Photronics Inc.1	160,028		2,838,897
Transkaryotic Therapies Inc.1	165,132		2,833,665
Genesco Inc.1	122,018		2,828,377
Ventana Medical Systems Inc.1	69,000		2,826,240
AMLI Residential Properties Trust	99,884		2,821,723
Haemonetics Corp.1	89,635		2,819,021
C-COR.net Corp.1	201,024		2,818,356
Anchor BanCorp Wisconsin Inc.	110,266		2,817,296
Epicor Software Corp.1	212,246		2,816,504
Actel Corp.1	123,684		2,798,969
Kelly Services Inc. Class A	94,189		2,788,936
Identix Inc.1	481,586		2,783,086
Silgan Holdings Inc.1	60,701		2,775,857
Komag Inc.1	150,695		2,772,788
Manufactured Home Communities Inc.	78,539		2,772,427
TBC Corp.1	94,269		2,768,681
eSpeed, Inc.1	132,051		2,767,789
Gymboree Corp.1	164,996		2,766,983
Hain Celestial Group Inc.1	124,990		2,761,029
Global Imaging Systems Inc.1	83,098		2,760,516
Pacer International Inc.1	125,167		2,758,681
Rollins Inc.	107,021		2,757,931
InterMune Inc.1	140,459		2,736,141
M/I Schottenstein Homes Inc.	57,790		2,732,311
Financial Federal Corp.1	81,584		2,727,353
Fidelity Bankshares Inc.	74,285		2,722,545
Wright Medical Group Inc.1	88,674		2,722,292
Superior Energy Services Inc.1	269,703		2,718,606
URS Corp.1	94,293		2,713,753
Swift Energy Co.1	143,942		2,713,307
deCODE genetics Inc.1	255,830		2,711,798
Smith (A.O.) Corp.	93,403		2,704,017
EMCOR Group Inc.1	73,645		2,702,771
Russell Corp.	147,690		2,696,819
PFF Bancorp Inc.	70,722		2,696,630
Universal Forest Products Inc.	87,194		2,690,807
Schweitzer-Mauduit International Inc.	83,293		2,690,364
TierOne Corp.	114,447		2,688,360
Argonaut Group Inc.1	141,237		2,687,740
Cyberonics Inc.1	112,046		2,684,622
Aviall Inc.1	176,377		2,680,930
Dendrite International Inc.1	167,284		2,676,544
Merit Medical Systems Inc.1	123,645		2,675,678
BioMarin Pharmaceutical Inc.1	355,764		2,675,345
AMC Entertainment Inc.1	174,200		2,673,970
Pharmacopeia Inc.1	132,869		2,673,324
Getty Realty Corp.	100,581		2,672,437
Sinclair Broadcast Group Inc. Class A1	213,317		2,666,463
Cray Inc.1	402,024		2,665,419
Movie Gallery Inc.	135,826		2,660,831
Fleetwood Enterprises Inc.1	216,670		2,660,708
SonicWALL Inc.1	297,778		2,656,180
Triumph Group Inc.1	80,172		2,649,685
Intuitive Surgical Inc.1	155,843		2,649,331
CTS Corp.	203,159		2,649,193
Ultratech Inc.1	113,473		2,645,056
Tuesday Morning Corp.1	76,744		2,644,598
Vignette Corp.1	1,275,726		2,640,753
Eclipsys Corp.1	195,788		2,639,222
Schnitzer Steel Industries Inc. Class A	82,269		2,637,528
Regal-Beloit Corp.	131,891		2,635,182
K2 Inc.1	164,125		2,630,924
First Sentinel Bancorp Inc.	124,156		2,625,899
Magma Design Automation Inc.1	125,376		2,621,612
Sapient Corp.1	433,929		2,616,592
Alexion Pharmaceuticals Inc.1	110,054		2,614,883
CKE Restaurant Inc.1	264,049		2,614,085

54 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 2000 INDEX FUND

March 31, 2004

Security	Shares	Value
Parkway Properties Inc.	55,912	$	2,613,886
CV Therapeutics Inc.1	172,684		2,612,709
Regeneron Pharmaceuticals Inc.1	192,167		2,609,628
SERENA Software Inc.1	128,123		2,607,303
Mykrolis Corp.1	182,448		2,601,708
Phillips-Van Heusen Corp.	140,409		2,597,567
Serologicals Corp.1	127,170		2,594,268
First Community Bancorp	69,343		2,592,735
Digene Corp.1	75,079		2,579,714
Alfa Corp.	189,543		2,579,680
Jo-Ann Stores Inc.1	91,884		2,577,346
PAREXEL International Corp.1	143,927		2,571,975
Ditech Communications Corp.1	153,908		2,565,646
Oriental Financial Group Inc.	79,948		2,546,344
Genesee & Wyoming Inc. Class A1	102,897		2,541,556
Cell Genesys Inc.1	210,799		2,538,020
KCS Energy Inc.1	236,655		2,532,209
Petroleum Development Corp.1	88,376		2,531,972
Greif Inc. Class A	72,329		2,527,175
Wabtec Corp.	177,425		2,526,532
CIMA Labs Inc.1	80,343		2,525,180
ESS Technology Inc.1	172,030		2,521,960
Nautilus Group Inc. (The)	160,082		2,521,292
Golden Telecom Inc.	74,042		2,519,649
Discovery Laboratories Inc.1	206,453		2,516,662
Manugistics Group Inc.1	367,070		2,514,430
Tredegar Corp.	171,854		2,514,224
Lone Star Technologies Inc.1	141,903		2,507,426
Global Industries Ltd.1	427,314		2,499,787
Safeguard Scientifics Inc.1	671,983		2,499,777
Community Trust Bancorp Inc.	75,747		2,499,651
ScanSoft Inc.1	446,737		2,497,260
Insight Communications Co. Inc.1	249,282		2,492,820
California Water Service Group	88,103		2,492,434
First Merchants Corp.	103,606		2,491,724
FIRSTFED AMERICA BANCORP INC.	89,374		2,490,853
Lone Star Steakhouse & Saloon Inc.	85,273		2,489,119
Kyphon Inc.1	103,690		2,479,228
NCI Building Systems Inc.1	105,496		2,474,936
Myriad Genetics Inc.1	152,146		2,467,808
Possis Medical Inc.1	87,674		2,466,270
Penn Virginia Corp.	40,679		2,465,147
autobytel.com Inc.1	186,469		2,461,391
Intermagnetics General Corp.1	92,719		2,457,054
United Auto Group Inc.	89,571		2,450,663
Park Electrochemical Corp.	96,667		2,445,675
Noven Pharmaceuticals Inc.1	113,610		2,439,207
Boca Resorts Inc. Class A1	139,756		2,438,742
Gaylord Entertainment Co.1	78,887		2,437,608
REMEC Inc.1	320,699		2,437,312
International Multifoods Corp.1	98,567		2,436,576
Trammell Crow Co.1	173,052		2,427,920
Berry Petroleum Co. Class A	88,803		2,422,546
webMethods Inc.1	257,487		2,420,378
SuperGen Inc.1	189,065		2,420,032
Methode Electronics Inc.	187,047		2,412,906
Offshore Logistics Inc.1	104,602		2,411,076
Micromuse Inc.1	308,185		2,403,843
Town & Country Trust (The)	88,266		2,400,835
Meristar Hospitality Corp.1	345,291		2,399,772
Central Pacific Financial Corp.	80,534		2,399,108
Consolidated Graphics Inc.1	62,393		2,399,011
ARIAD Pharmaceuticals Inc.1	253,502		2,398,129
Speedway Motorsports Inc.	78,935		2,392,520
Steak n Shake Company (The)1	124,236		2,391,543
Belden Inc.	125,973		2,389,708
Glenborough Realty Trust Inc.	106,740		2,385,639
NCO Group Inc.1	101,935		2,382,221
Franklin Electric Co. Inc.	37,372		2,379,849
U.S. Restaurant Properties Inc.	126,746		2,375,220
WCI Communities Inc.1	94,865		2,374,471
Rofin-Sinar Technologies Inc.1	79,472		2,372,239
Irwin Financial Corp.	87,750		2,367,495
Exelixis Inc.1	276,710		2,365,870
Sohu.com Inc.1	94,856		2,360,966
Prime Hospitality Corp.1	206,888		2,354,385
Bank Mutual Corp.	210,265		2,352,862
Albany Molecular Research Inc.1	147,927		2,350,560
Hibbet Sporting Goods Inc.1	61,551		2,347,555
Stewart & Stevenson Services Inc.	160,532		2,346,978
United Therapeutics Inc.1	97,845		2,331,646

SCHEDULES OF INVESTMENTS 55

Schedule of Investments (Continued)

iSHARES^® RUSSELL 2000 INDEX FUND

March 31, 2004

Security	Shares	Value
JDA Software Group Inc.1	159,980	$	2,327,709
Chesapeake Corp.	97,445		2,326,012
PTEK Holdings Inc.1	252,974		2,324,831
Remington Oil & Gas Corp.1	117,629		2,323,173
Applied Films Corporation1	82,839		2,311,208
First Federal Capital Corp.	108,313		2,305,984
Paxar Corp.1	156,126		2,302,859
ArthroCare Corp.1	99,522		2,299,953
Retek Inc.1	302,216		2,284,753
Xicor Inc.1	149,651		2,277,688
SOURCECORP Inc.1	85,860		2,275,290
Tanger Factory Outlet Centers Inc.	50,193		2,274,747
Lance Inc.	138,665		2,272,719
West Pharmaceutical Services Inc.	60,628		2,267,487
Kramont Realty Trust	119,814		2,264,485
First Republic Bank	58,712		2,263,935
General Communication Inc. Class A1	248,446		2,260,859
Cubic Corp.	86,833		2,257,658
OraSure Technologies Inc.1	217,834		2,256,760
Triad Guaranty Inc.1	42,779		2,256,592
E.piphany Inc.1	312,287		2,254,712
Mediacom Communications Corp.1	280,990		2,253,540
Bedford Property Investors Inc.	73,904		2,251,855
Kopin Corp.1	389,544		2,251,564
Agile Software Corp.1	257,143		2,250,001
ShopKo Stores Inc.1	153,658		2,246,480
Hologic Inc.1	110,869		2,245,097
Primedia Inc.1	830,838		2,243,263
Interwoven Inc1	224,507		2,238,335
First Financial Corp.	76,280		2,235,767
Accredited Home Lenders Holding Co.1	56,638		2,231,537
Orthodontic Centers of America Inc.1	281,989		2,227,713
Newpark Resources Inc.1	427,859		2,224,867
United Community Financial Corp.	170,574		2,222,579
Vector Group Ltd.	130,692		2,221,764
CDI Corp.	68,657		2,216,248
Stratex Networks Inc.1	466,576		2,216,236
IBERIABANK Corp.	37,627		2,214,349
Investors Real Estate Trust	224,880		2,208,322
Tyler Technologies Inc.1	226,803		2,202,257
Heidrick & Struggles International Inc.1	91,816		2,197,157
West Marine Inc.1	68,982		2,197,077
SureWest Communications	81,961		2,195,735
AAR Corp.1	178,778		2,195,394
William Lyon Homes Inc.1	23,545		2,194,394
Electronics Boutique Holdings Corp.1	74,708		2,193,427
Cohu Inc.	117,589		2,193,035
Stride Rite Corp.	206,598		2,192,005
Artisan Components Inc.1	98,190		2,188,655
Simmons First National Corp. Class A	79,427		2,188,214
Pinnacle Entertainment Inc.1	158,344		2,185,147
Infinity Property & Casualty Corp.	69,447		2,182,719
Gentiva Health Services Inc.1	140,849		2,181,751
Children’s Place Retail Stores Inc. (The)1	70,338		2,178,368
EnPro Industries Inc.1	115,075		2,177,219
Cell Therapeutics Inc.1	257,300		2,176,758
Encore Wire Corp.1	58,355		2,173,724
Applied Industrial Technologies Inc.	95,471		2,169,101
Equity Inns Inc.	235,387		2,165,560
Alderwoods Group Inc.1	208,203		2,165,311
StarTek Inc.	58,863		2,139,081
Papa John’s International Inc.1	63,202		2,138,756
Isle of Capri Casinos Inc.1	84,894		2,134,235
Arctic Cat Inc.	83,642		2,132,035
Suffolk Bancorp	62,234		2,131,515
GameStop Corp.1	118,280		2,131,406
RadiSys Corp.1	101,923		2,130,191
Sterling Bancorp (New York)	73,068		2,129,932
Ocwen Financial Corp.1	220,210		2,129,431
NACCO Industries Inc.	25,834		2,128,722
Itron Inc.1	114,316		2,127,421
Asyst Technologies Inc.1	258,465		2,127,167
Weis Markets Inc.	63,017		2,126,824
Triarc Companies Inc. Class B	193,839		2,124,475
First Financial Holdings Inc.	71,069		2,124,252

56 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 2000 INDEX FUND

March 31, 2004

Security	Shares	Value
Enzo Biochem Inc.1	126,163	$	2,123,323
Allegiant Bancorp Inc.	72,073		2,119,667
ChipPAC Inc. Class A1	267,884		2,118,962
Local Financial Corp.1	97,075		2,116,235
aQuantive, Inc.1	220,227		2,114,179
O’Charley’s Inc.1	115,738		2,112,219
j2 Global Communications Inc.1	93,579		2,111,142
Columbia Banking System Inc.	75,352		2,109,856
Old Dominion Freight Line Inc.1	62,562		2,108,339
Cable Design Technologies Corp.1	222,237		2,106,807
EDO Corp.	87,246		2,100,884
ExpressJet Holdings Inc.1	168,846		2,100,444
Hanger Orthopedic Group Inc.1	116,110		2,095,786
American States Water Co.	85,303		2,081,393
7-Eleven Inc.1	137,137		2,080,368
Jakks Pacific Inc.1	138,613		2,079,195
Integra Bank Corp.	86,293		2,078,798
Tompkins Trustco Inc.	45,650		2,077,075
HomeStore Inc.1	490,359		2,074,219
RC2 Corp.1	75,346		2,072,015
Datascope Corp.	58,942		2,071,222
Universal Health Realty Income Trust	61,389		2,068,809
BioLase Technology Inc.1	117,962		2,065,515
Oakley Inc.	139,087		2,064,051
Geron Corp.1	219,553		2,063,798
Chattem Inc.1	79,496		2,060,536
Plains Resource Inc.1	113,217		2,058,285
Duane Reade Inc.1	121,308		2,054,958
Mattson Technology Inc.1	171,526		2,051,451
American Woodmark Corp.	30,857		2,050,756
Main Street Banks Inc.	74,958		2,049,352
SeaChange International Inc.1	133,729		2,046,054
Central Parking Corp.	101,837		2,044,887
Frontier Airlines Inc.1	196,085		2,043,206
Capital City Bank Group Inc.	49,520		2,042,700
Parker Drilling Co.1	488,289		2,036,165
Pre-Paid Legal Services Inc.1	83,159		2,035,732
Palm Harbor Homes Inc.1	96,969		2,032,470
Burlington Coat Factory Warehouse Corp.	102,515		2,029,797
Opsware Inc.1	268,451		2,029,490
Ameristar Casinos Inc.1	60,102		2,028,382
Hydril1	77,401		2,027,906
Inspire Pharmaceuticals Inc.1	157,370		2,026,926
Harris Interactive Inc.1	239,131		2,015,874
Wireless Facilities Inc.1	182,915		2,013,894
Analogic Corp.	44,266		2,013,660
Cubist Pharmaceuticals Inc.1	218,805		2,013,006
Century Business Services Inc.1	409,886		2,012,540
Lithia Motors Inc. Class A	72,760		2,011,814
Forward Air Corp.1	61,181		2,011,019
Independent Bank Corp. (Massachusetts)	66,055		2,002,127
Advisory Board Co. (The)1	54,767		2,001,734
Tanox Inc.1	134,426		2,001,603
RailAmerica Inc.1	166,000		2,000,300
Robert Mondavi Corp. (The) Class A1	52,884		1,999,544
Dot Hill Systems Corp.1	199,372		1,997,707
Integrated Electrical Services Inc.1	177,662		1,996,921
Hooper Holmes Inc.	319,529		1,993,861
CTI Molecular Imaging Inc.1	136,403		1,990,120
Symmetricom Inc.1	221,813		1,989,663
Gevity HR Inc.	67,872		1,981,862
Jill (J.) Group Inc. (The)1	96,480		1,979,770
Lawson Software Inc.1	238,443		1,979,077
Rock-Tenn Co. Class A	137,160		1,977,847
Insituform Technologies Inc. Class A1	126,443		1,976,304
At Road Inc.1	160,969		1,975,090
InFocus Corp.1	210,015		1,963,640
PrivateBancorp Inc.	38,029		1,961,536
MRV Communications Inc.1	588,384		1,959,319
Immucor Inc.1	107,918		1,955,474
Century Aluminum Co.1	69,202		1,953,572
World Fuel Services Corp.	53,076		1,949,481
West Coast Bancorp	85,652		1,948,583
Washington Trust Bancorp Inc.	73,758		1,947,211
Kimball International Inc. Class B	124,150		1,945,431
Urstadt Biddle Properties Inc. Class A	117,760		1,943,040

SCHEDULES OF INVESTMENTS 57

Schedule of Investments (Continued)

iSHARES^® RUSSELL 2000 INDEX FUND

March 31, 2004

Security	Shares	Value
Zenith National Insurance Corp.	49,562	$	1,942,830
Interface Inc. Class A1	244,251		1,941,795
Coinstar Inc.1	122,296		1,940,838
Isis Pharmaceuticals Inc.1	249,349		1,934,948
Old Second Bancorp Inc.	37,592		1,932,981
Advanced Energy Industries Inc.1	94,522		1,927,304
Administaff Inc.1	110,563		1,927,113
Standard Microsystems Corp.1	72,336		1,927,031
C&D Technologies Inc.	115,229		1,925,477
Barnes Group Inc.	69,006		1,924,577
Input/Output Inc.1	248,018		1,922,140
New England Business Service Inc.	56,720		1,919,972
Oil States International Inc.1	142,782		1,918,990
Deltic Timber Corp.	54,053		1,917,800
Epix Medical Inc.1	92,288		1,914,976
GenCorp. Inc.	176,652		1,913,141
AC Moore Arts & Crafts Inc.1	70,856		1,913,112
Zoll Medical Corp.1	47,815		1,911,644
Ramco-Gershenson Properties Trust	67,595		1,906,179
Valhi Inc.	150,892		1,904,257
Tennant Co.	47,835		1,897,614
Walter Industries Inc.	158,226		1,889,218
Haverty Furniture Companies Inc.	88,764		1,888,898
Landauer Inc.	44,869		1,884,498
Marcus Corp.	108,521		1,882,839
Advanta Corp. Class B	113,416		1,882,706
Saul Centers Inc.	61,582		1,881,330
Agilysys Inc.	157,994		1,880,129
Biosite Inc.1	58,583		1,872,899
AMCOL International Corp.	107,269		1,871,844
Dress Barn Inc.1	106,654		1,870,711
Audiovox Corp. Class A1	93,400		1,868,000
TiVo Inc.1	210,086		1,867,665
Spanish Broadcasting System Inc. Class A1	178,500		1,865,325
Presstek Inc.1	171,418		1,865,028
21st Century Insurance Group	129,497		1,864,757
California Pizza Kitchen Inc.1	93,177		1,863,540
U.S.I. Holdings Corp.1	125,866		1,861,558
State Auto Financial Corp.	72,124		1,861,520
Brookstone Inc.1	67,532		1,857,805
Portfolio Recovery Associates Inc.1	68,950		1,857,513
Cepheid Inc.1	199,225		1,854,785
Alaris Medical Systems Inc.1	99,423		1,854,239
Euronet Worldwide Inc.1	97,481		1,853,114
Finisar Corp.1	849,386		1,851,661
FBL Financial Group Inc. Class A	65,824		1,849,654
Kaman Corp. Class A	123,269		1,840,406
Prosperity Bancshares Inc.	77,773		1,832,332
LabOne Inc.1	60,171		1,829,198
SupportSoft Inc.1	166,052		1,828,233
Anaren Inc.1	115,747		1,826,488
Comtech Telecommunications Corp.1	78,325		1,817,140
Big 5 Sporting Goods Corp.1	71,941		1,816,510
Westell Technologies Inc. Class A1	248,582		1,814,649
W-H Energy Services Inc.1	125,245		1,812,295
Cross Country Healthcare Inc.1	108,668		1,809,322
ICU Medical Inc.1	59,465		1,805,952
Daktronics Inc.1	79,944		1,804,336
Southern Financial Bancorp Inc.	40,383		1,801,082
Libbey Inc.	69,397		1,799,464
Bel Fuse Inc. Class B	54,928		1,798,343
Correctional Properties Trust	58,304		1,795,763
Glatfelter Co.	159,749		1,795,579
First Horizon Pharmaceutical Corp.1	113,744		1,792,605
Able Laboratories Inc.1	91,740		1,791,682
National Western Life Insurance Co. Class A1	12,118		1,790,919
Echelon Corp.1	158,688		1,788,414
RehabCare Group Inc.1	89,701		1,783,259
Elizabeth Arden Inc.1	84,255		1,779,466
Alexander’s Inc.1	11,109		1,777,440
Holly Corp.	55,626		1,772,244
Keystone Automotive Industries Inc.1	64,758		1,771,779
SRA International Inc. Class A1	47,801		1,765,769
Russ Berrie & Co. Inc.	50,437		1,765,295
MatrixOne Inc.1	242,681		1,761,864
CCBT Financial Companies Inc.	47,699		1,760,093
Casual Male Retail Group Inc.1	169,580		1,753,457

58 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 2000 INDEX FUND

March 31, 2004

Security	Shares	Value
POZEN Inc.1	126,829	$	1,752,777
VistaCare Inc. Class A1	64,837		1,751,896
1st Source Corp.	71,107		1,750,654
Maxwell Shoe Co. Inc. Class A1	77,661		1,748,149
Packeteer Inc.1	132,418		1,747,918
BSB Bancorp Inc.	45,279		1,747,769
Presidential Life Corp.	116,433		1,744,166
infoUSA Inc.1	165,893		1,743,535
Prima Energy Corp.1	50,008		1,727,776
World Acceptance Corp.1	88,358		1,723,865
American Medical Security Group Inc.1	64,386		1,719,750
Ceradyne Inc.1	47,527		1,718,101
Sharper Image Corp.1	52,719		1,717,585
Lionbridge Technologies Inc.1	176,445		1,716,810
Caraustar Industries Inc.1	147,148		1,714,274
Omnicell Inc.1	86,427		1,712,119
Community Banks Inc.	54,930		1,711,619
FreeMarkets Inc.1	207,900		1,711,017
USB Holding Co. Inc.	69,713		1,710,757
SonoSite Inc.1	80,162		1,709,855
Watts Industries Inc. Class A	73,070		1,709,107
United Fire & Casualty Co.	40,416		1,708,344
Atlantic Coast Airlines Holdings Inc.1	234,456		1,704,495
North Pittsburgh Systems Inc.	84,588		1,702,756
Monolithic System Technology Inc.1	126,778		1,697,557
SCS Transportation Inc.1	77,840		1,696,912
CB Bancshares Inc.	24,237		1,693,924
X-Rite Inc.	113,736		1,693,529
Per-Se Technologies Inc.1	151,200		1,693,440
American West Holdings Corp. Class B1	177,575		1,692,290
Artesyn Technologies Inc.1	177,342		1,688,296
RTI International Metals Inc.1	106,577		1,687,114
ON Semiconductor Corp.1	223,396		1,684,406
Topps Co. (The)	175,957		1,680,389
Thomas Industries Inc.	53,310		1,679,265
TALX Corp.	76,332		1,675,487
Omega Financial Corp.	45,814		1,675,051
Octel Corp.	56,113		1,674,973
Peoples Bancorp Inc.	60,139		1,672,466
Laserscope1	84,505		1,671,509
eCollege.com Inc.1	79,684		1,663,802
Intrado Inc.1	85,922		1,662,591
DIMON Inc.	233,787		1,659,888
Standex International Corp.	61,403		1,657,881
Vail Resorts Inc.1	105,111		1,656,549
Genesis HealthCare Corp.1	68,027		1,656,457
Cascade Bancorp	72,103		1,656,206
NeoPharm Inc.1	88,277		1,656,077
First Community Bancshares Inc.	54,062		1,651,053
Wild Oats Markets Inc.1	139,113		1,645,707
Valmont Industries Inc.	82,241		1,643,175
Banner Corp.	55,908		1,637,545
Peregrine Pharmaceuticals Inc.1	667,542		1,635,478
Pegasus Solutions Inc.1	139,843		1,633,366
Ethyl Corp.1	82,290		1,630,165
Bradley Pharmaceuticals Inc.1	64,735		1,630,027
KFx Inc.1	156,880		1,629,983
Corixa Corp.1	253,872		1,625,492
Intertan Inc.1	116,085		1,621,707
Verity Inc.1	118,254		1,616,532
Excel Technology Inc.1	51,322		1,614,077
Sturm Ruger & Co. Inc.	119,375		1,612,756
Aspen Technology Inc.1	197,331		1,612,194
Iomega Corp.	288,203		1,611,055
Sanderson Farms Inc.	43,798		1,608,701
Synaptics Inc.1	91,628		1,607,155
Sonic Solutions Inc.1	84,702		1,605,950
Tower Automotive Inc.1	317,035		1,597,856
Ryerson Tull Inc.	121,783		1,594,139
Universal American Financial Corp.1	132,719		1,592,628
Royal Gold Inc.	89,920		1,592,483
Lindsay Manufacturing Co.	65,892		1,586,679
Northwest Bancorp Inc.	62,041		1,586,388
Peoples Holding Co.	47,023		1,584,675
Energy Partners Ltd.1	118,666		1,584,191
General Cable Corp.1	214,337		1,581,807
CompuCredit Corp.1	74,799		1,581,251
Atwood Oceanics Inc.1	44,404		1,580,338

SCHEDULES OF INVESTMENTS 59

Schedule of Investments (Continued)

iSHARES^® RUSSELL 2000 INDEX FUND

March 31, 2004

Security	Shares	Value
WSFS Financial Corp.	31,271	$	1,568,866
Stein Mart Inc.1	113,684		1,568,839
Gibraltar Steel Corp.	63,814		1,568,548
J&J Snack Foods Corp.1	34,674		1,566,571
CIRCOR International Inc.	69,272		1,565,547
DuPont Photomasks Inc.1	67,241		1,564,026
Great Southern Bancorp Inc.	31,821		1,563,366
SurModics Inc.1	78,429		1,561,521
4Kids Entertainment Inc.1	69,751		1,560,330
Quaker City Bancorp Inc.	28,592		1,555,405
Buckeye Technologies Inc.1	150,134		1,555,388
Apogee Enterprises Inc.	125,926		1,552,668
Nara Bancorp Inc.	52,409		1,552,355
City Bank	45,082		1,552,173
Altiris Inc.1	55,510		1,550,949
Ennis Business Forms Inc.	92,277		1,544,717
Siliconix Inc.1	33,086		1,542,800
Immunogen Inc.1	229,290		1,540,829
Bank of Granite Corp.	74,492		1,539,750
Midas Inc.1	78,967		1,535,908
Resource America Inc. Class A	83,010		1,535,685
West Bancorporation	90,591		1,530,988
Overstock.com Inc.1	49,568		1,530,660
SpectraLink Corp.	89,829		1,529,788
Interchange Financial Services Corp.	62,948		1,529,636
NUI Corp.	90,403		1,528,715
ManTech International Corp. Class A1	74,542		1,527,366
Brush Engineered Materials Inc.1	74,958		1,519,399
Cato Corp. Class A	75,634		1,518,731
Riggs National Corp.	87,957		1,513,740
II-VI Inc.1	61,768		1,510,228
Pope & Talbot Inc.	87,820		1,509,626
CuraGen Corp.1	241,855		1,509,175
Vans Inc.1	101,744		1,505,811
Bank of the Ozarks Inc.	54,551		1,502,880
SS&C Technologies Inc.	61,893		1,502,143
Wellman Inc.	179,776		1,501,130
Praecis Pharmaceuticals Inc.1	253,422		1,497,724
Central Vermont Public Service Corp.	66,488		1,495,980
Clark Inc.1	87,632		1,489,744
Nash Finch Co.	62,871		1,488,785
Cole National Corp.1	67,446		1,488,533
Bombay Co. Inc. (The)1	189,205		1,485,259
Forrester Research Inc.1	78,226		1,482,383
Regeneration Technologies Inc.1	130,572		1,481,992
Second Bancorp Inc.	45,815		1,479,825
Avanex Corp.1	342,481		1,479,518
FindWhat.com1	68,330		1,479,344
Calgon Carbon Corp.	191,410		1,473,857
Goody’s Family Clothing Inc.	103,269		1,473,649
Gabelli Asset Management Inc. Class A	36,579		1,473,402
Red Robin Gourmet Burgers1	51,875		1,473,250
Capitol Bancorp Ltd.	54,353		1,472,966
Time Warner Telecom Inc. Class A1	225,558		1,472,894
Information Holdings Inc.1	71,004		1,464,102
ValueVision Media Inc. Class A1	95,233		1,461,827
Levitt Corp. Class A1	59,282		1,452,409
Charles River Associates Inc.1	44,290		1,452,092
Perini Corp.1	92,146		1,451,300
Joseph A. Bank Clothiers Inc.1	40,309		1,451,124
Republic Bancshares Inc.	48,301		1,450,576
OSI Systems Inc.1	72,508		1,450,160
Flushing Financial Corp.	79,833		1,444,977
WatchGuard Technologies Inc.1	184,435		1,442,282
Concur Technologies Inc.1	128,632		1,440,678
Camden National Corp.	45,077		1,440,210
Tejon Ranch Co.1	38,857		1,436,155
Oplink Communications Inc.1	571,800		1,435,218
Orthologic Corp.1	184,708		1,431,487
Trex Co. Inc.1	41,917		1,429,789
Meridian Resource Corp. (The)1	237,398		1,429,136
Applied Signal Technology Inc.	52,198		1,426,049
Saga Communications Inc.1	76,463		1,426,035
Midwest Banc Holdings Inc.	60,269		1,424,156
FalconStor Software Inc.1	191,957		1,420,098
Keithley Instruments Inc.	68,513		1,418,904
Courier Corp.	31,698		1,418,486

60 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 2000 INDEX FUND

March 31, 2004

Security	Shares	Value
MBT Financial Corp.	82,234	$	1,414,425
Coldwater Creek Inc.1	66,204		1,411,469
SWS Group Inc.	78,570		1,407,189
Interpore International1	97,748		1,405,616
Virginia Financial Group Inc.	40,446		1,405,499
Arrow Financial Corp.	47,041		1,404,644
Kadant Inc.1	67,174		1,400,578
Ixia1	129,234		1,398,312
Zygo Corp.1	89,246		1,394,915
Nuvelo Inc.1	110,991		1,394,047
Bei Technologies Inc.	62,035		1,393,306
UniFirst Corp.	50,495		1,392,652
Union Bankshares Corp.	42,936		1,385,545
Hanmi Financial Corp.	51,992		1,382,467
Innkeepers USA Trust	150,748		1,377,837
Humboldt Bancorp	69,402		1,376,242
Encore Acquisition Co.1	49,503		1,371,233
Skechers U.S.A. Inc. Class A1	104,390		1,368,553
AMN Healthcare Services Inc.1	74,552		1,368,029
CT Communications Inc.	98,712		1,365,187
SCBT Financial Corp.	43,335		1,365,053
Cascade Natural Gas Corp.	62,625		1,364,599
Rewards Network Inc.1	135,713		1,357,130
Fisher Communications Inc.1	27,809		1,355,689
Molecular Devices Corp.1	71,880		1,354,219
SciClone Pharmaceuticals Inc.1	250,208		1,351,123
Astec Industries Inc.1	83,810		1,350,179
TriZetto Group Inc. (The)1	173,962		1,348,206
LTC Properties Inc.	74,336		1,346,225
Salem Communications Corp. Class A1	49,157		1,345,919
BioVeris Corp.1	113,470		1,344,619
Pericom Semiconductor Corp.1	117,118		1,344,515
Network Equipment Technologies Inc.1	134,657		1,343,877
First Busey Corp. Class A	49,555		1,343,436
TTM Technologies Inc.1	108,933		1,342,055
ActivCard Corp.1	207,403		1,341,897
Magna Entertainment Corp. Class A1	222,407		1,338,890
Concord Communications Inc.1	92,564		1,333,847
Penwest Pharmaceuticals Co.1	91,270		1,333,455
Myers Industries Inc.	108,372		1,332,976
Vicor Corp.1	108,587		1,332,362
WESCO International Inc.1	89,418		1,332,328
SY Bancorp Inc.	59,388		1,330,291
CorVel Corp.1	36,695		1,328,359
Matria Healthcare Inc.1	52,422		1,327,325
Monro Muffler Brake Inc.1	53,037		1,325,395
Valence Technology Inc.1	297,701		1,324,769
MemberWorks Inc.1	37,900		1,323,468
Seacoast Banking Corp. of Florida	63,934		1,323,434
First Bancorp (North Carolina)	41,983		1,322,045
Skyline Corp.	34,260		1,321,408
First Indiana Corp.	65,538		1,320,591
Seattle Genetics Inc.1	155,948		1,319,320
Lexicon Genetics Inc.1	210,347		1,318,876
Action Performance Companies Inc.	86,329		1,318,244
Allscripts Healthcare Solutions Inc.1	135,577		1,315,097
Robbins & Myers Inc.	60,778		1,309,766
Macatawa Bank Corp.	46,980		1,309,333
McGrath Rentcorp	42,942		1,309,302
Coachmen Industries Inc.	78,427		1,308,162
Healthcare Services Group Inc.	79,341		1,305,160
Churchill Downs Inc.	33,531		1,300,332
Hancock Fabrics Inc.	81,827		1,300,231
ITLA Capital Corp.1	26,241		1,297,880
VIVUS Inc.1	212,987		1,292,831
Antigenics Inc.1	121,174		1,291,715
Matrix Service Co.1	95,386		1,290,573
Metris Companies Inc.1	160,465		1,290,139
Mobile Mini Inc.1	74,537		1,289,490
Conceptus Inc.1	108,017		1,287,563
Credit Acceptance Corp.1	67,765		1,286,857
Midway Games Inc.1	176,674		1,286,187
Peet’s Coffee & Tea Inc.1	60,374		1,285,966
Commercial Capital Bancorp Inc.1	56,106		1,285,957
First State Bancorp	41,656		1,285,504
Central European Distribution Corp.1	39,704		1,284,027
Indevus Pharmaceuticals Inc.1	212,178		1,283,677
Winston Hotels Inc.	121,619		1,281,864

SCHEDULES OF INVESTMENTS 61

Schedule of Investments (Continued)

iSHARES^® RUSSELL 2000 INDEX FUND

March 31, 2004

Security	Shares	Value
Young Broadcasting Inc. Class A1	70,753	$	1,280,629
Netegrity Inc.1	150,634		1,280,389
MTR Gaming Group Inc.1	127,938		1,279,380
HEICO Corp.	81,529		1,279,190
Farmer Brothers Co.	3,552		1,278,720
Peapack-Gladstone Financial Corp.	37,748		1,278,147
Navigant International Inc.1	70,893		1,276,074
Regent Communications Inc.1	195,841		1,274,925
Cardiac Science Inc.1	291,164		1,272,387
Universal Display Corp.1	99,026		1,270,504
Ameron International Corp.	37,591		1,267,944
SBS Technologies Inc.1	82,012		1,267,906
Partners Trust Financial Group Inc.	37,057		1,267,720
SPSS Inc.1	69,154		1,265,518
Connecticut Water Service Inc.	44,706		1,265,180
Inverness Medical Innovations Inc.1	69,118		1,264,859
Terayon Communication Systems Inc.1	369,238		1,262,794
MRO Software Inc.1	108,674		1,262,792
MainSource Financial Group Inc.	35,249		1,262,619
Candela Corp.1	91,668		1,256,768
SJW Corp.	36,184		1,254,137
Aceto Corp.	79,714		1,252,307
Pulitzer Inc.	25,887		1,249,048
Zymogenetics Inc.1	80,742		1,247,464
TALK America Holdings Inc.1	147,030		1,245,344
Movado Group Inc.	41,510		1,242,809
Palatin Technologies Inc.1	298,022		1,242,752
CCC Information Services Group Inc.1	69,919		1,242,461
TRC Companies Inc.1	66,118		1,237,068
Great Lakes REIT Inc.	79,818		1,235,583
Baldwin & Lyons Inc. Class B	42,493		1,233,572
Avatar Holdings1	32,878		1,232,596
Rudolph Technologies Inc.1	65,783		1,232,116
Stamps.com Inc.	205,504		1,230,969
PennRock Financial Services Corp.	43,021		1,230,401
Mesa Air Group Inc.1	148,766		1,228,807
TeleTech Holdings Inc.1	196,031		1,227,154
InterCept Inc.1	100,511		1,225,229
Buckle Inc. (The)	42,134		1,220,201
Plug Power Inc.1	158,003		1,219,783
LSI Industries Inc.	100,285		1,219,466
Drew Industries Inc.1	34,751		1,219,065
Pathmark Stores Inc.1	152,714		1,218,658
Computer Network Technology Corp.1	152,322		1,218,576
Nelson (Thomas) Inc.	44,747		1,218,013
Proxim Corp. Class A1	687,574		1,217,006
First Place Financial Corp.	67,081		1,216,849
Tollgrade Communications Inc.1	76,221		1,216,487
Maxygen Inc.1	128,119		1,215,849
Middlesex Water Co.	58,707		1,215,235
Concurrent Computer Corp.1	351,310		1,212,019
Applica Inc.1	107,632		1,209,784
MarineMax Inc.1	45,522		1,209,520
Building Materials Holdings Corp.	68,866		1,208,598
GEO Group Inc. (The)1	52,423		1,205,729
SFBC International Inc.1	40,504		1,205,399
GulfMark Offshore Inc.1	76,601		1,203,402
Citizens Inc.1	161,355		1,202,095
Savient Pharmaceuticals Inc.1	317,688		1,200,861
Acadia Realty Trust	84,747		1,195,780
MSC.Software Corp.1	135,498		1,193,737
Entrust Inc.1	272,123		1,189,178
Verso Technologies Inc.1	711,296		1,187,864
Farmers Capital Bank Corp.	33,929		1,187,515
Lakeland Bancorp Inc.	72,112		1,186,964
PalmSource Inc.1	65,320		1,186,864
Kosan Biosciences Inc.1	112,079		1,184,675
Provident Bancorp Inc.	99,670		1,181,090
Asbury Automotive Group Inc.1	68,111		1,179,001
CardioDynamics International Corp.1	186,541		1,178,939
EPIQ Systems Inc.1	71,760		1,175,429
Mercantile Bank Corp.	33,000		1,171,500
Exult Inc.1	187,958		1,170,978
Global Power Equipment Group Inc.1	139,049		1,170,793
Consolidated-Tomoka Land Co.	31,514		1,169,800
Cascade Corp.	57,595		1,169,178
Citizens First Bancorp Inc.	48,371		1,168,643

62 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 2000 INDEX FUND

March 31, 2004

Security	Shares	Value
Semitool Inc.1	91,589	$	1,166,844
EMS Technologies Inc.1	60,354		1,165,436
Charlotte Russe Holding Inc.1	63,646		1,164,722
Playtex Products Inc.1	167,942		1,160,479
Hudson Highland Group Inc.1	41,608		1,160,031
Hypercom Corp.1	145,847		1,158,025
USANA Health Sciences Inc.1	49,627		1,157,798
Herley Industries Inc.1	61,255		1,156,494
Federal Agricultural Mortgage Corp.1	44,124		1,156,490
Grace (W.R.) & Co.1	369,310		1,152,247
Yardville National Bancorp	46,573		1,150,353
Dura Automotive Systems Inc.1	86,353		1,147,631
Playboy Enterprises Inc. Class B1	81,743		1,146,037
Strattec Security Corp.1	18,085		1,145,142
PC-Tel Inc.1	110,352		1,139,936
Renaissance Learning Inc.	43,226		1,139,005
Keynote Systems Inc.1	88,340		1,136,936
TriPath Imaging Inc.1	123,930		1,135,199
Raven Industries Inc.	37,027		1,133,026
Quaker Chemical Corp.	44,599		1,132,815
Omega Healthcare Investors Inc.	104,117		1,131,752
BancFirst Corp.	20,390		1,130,422
Mission West Properties Inc.	85,314		1,130,411
Angelica Corp.	49,416		1,128,167
A.S.V. Inc.1	37,093		1,127,627
Trimeris Inc.1	76,399		1,126,885
LodgeNet Entertainment Corp.1	59,301		1,126,719
Southwest Water Co.	82,151		1,123,004
DJ Orthopedics Inc.1	43,405		1,122,019
Bassett Furniture Industries Inc.	56,546		1,121,307
Planar Systems Inc.1	78,798		1,121,296
AmericanWest Bancorporation1	56,731		1,118,168
Steven Madden Ltd.1	56,011		1,117,980
FNB Corp. (Virginia)	40,581		1,117,195
Gladstone Capital Corp.	49,550		1,114,379
Progenics Pharmaceuticals Inc.1	58,411		1,109,809
Sanfilippo (John B.) & Son Inc.1	30,219		1,109,037
Horizon Financial Corp.	59,887		1,103,717
TriCo Bancshares	29,501		1,102,747
First Oak Brook Bancshares Class A	36,056		1,100,069
AsiaInfo Holdings Inc.1	168,508		1,098,672
Patriot Bank Corp.	37,480		1,097,414
Aksys Ltd.1	168,720		1,094,993
Vital Sign Inc.	32,454		1,094,673
Sound Federal Bancorp Inc.	74,340		1,092,798
Volt Information Sciences Inc.1	44,693		1,092,297
United Industrial Corp.	57,659		1,092,061
Southside Bancshares Inc.	58,668		1,091,811
SeeBeyond Technology Corp.1	269,486		1,091,418
Capital Corporation of the West	27,794		1,087,579
Portal Software Inc.1	161,182		1,086,367
Financial Institutions Inc.	47,305		1,084,231
Kenneth Cole Productions Class A	31,787		1,083,937
NS Group Inc.1	82,903		1,077,739
Luminex Corp.1	118,870		1,075,774
Verint Systems Inc.1	34,775		1,074,548
Gorman-Rupp Co. (The)	41,412		1,072,571
Darling International Inc.1	313,576		1,066,158
Kensey Nash Corp.1	43,203		1,064,954
Standard Register Co. (The)	66,411		1,064,568
Boston Communications Group Inc.1	89,779		1,063,881
Berkshire Hills Bancorp Inc.	30,466		1,063,263
Bone Care International Inc.1	53,018		1,060,360
Tweeter Home Entertainment Group Inc.1	112,151		1,058,705
Ciphergen Biosystems Inc.1	126,944		1,057,444
Avant Immunotherapeutics Inc.1	419,240		1,056,485
Midland Co. (The)	42,336		1,056,283
MasTec Inc.1	111,517		1,056,066
Dendreon Corp.1	79,311		1,054,836
Rent-Way Inc.1	119,682		1,053,202
ABC Bancorp	55,374		1,049,336
Energy Conversion Devices Inc.1	107,069		1,049,276
Coastal Financial Corp.	64,324		1,045,263
Casella Waste Systems Inc. Class A1	71,863		1,044,888
Blue Rhino Corp.1	61,610		1,043,673
OshKosh B’Gosh Inc. Class A	44,601		1,043,663
Integral Systems Inc.	54,869		1,042,511
Bally Total Fitness Holding Corp.1	177,786		1,041,826
Closure Medical Corp.1	37,858		1,041,095
Coca-Cola Bottling Co. Consolidated	20,393		1,041,063
Wet Seal Inc. Class A1	125,778		1,037,669

SCHEDULES OF INVESTMENTS 63

Schedule of Investments (Continued)

iSHARES^® RUSSELL 2000 INDEX FUND

March 31, 2004

Security	Shares	Value
Southwest Bancorp Inc.	59,957	$	1,037,256
Quidel Corp.1	157,355		1,036,969
Standard Commercial Corp.	55,869		1,036,370
Stoneridge Inc.1	71,811		1,035,515
PDF Solutions Inc.1	89,948		1,035,301
Capstead Mortgage Corp.	55,970		1,032,646
Drugstore.com Inc.1	191,794		1,031,852
DOV Pharmaceutical Inc.1	66,374		1,030,124
Willow Grove Bancorp Inc.	57,444		1,028,248
Department 56 Inc.1	69,343		1,024,890
iPayment Holdings Inc.1	30,810		1,024,741
Sun Bancorp Inc. (New Jersey)1	40,439		1,022,702
D&E Communications Inc.	72,969		1,020,836
National Presto Industries Inc.	26,328		1,020,473
American Physicians Capital Inc.1	48,821		1,020,359
Unifi Inc.1	230,057		1,019,153
Lufkin Industries Inc.	32,436		1,016,869
Aaon Inc.1	51,371		1,016,631
Universal Electronics Inc.1	76,974		1,016,057
Lifeline Systems Inc.1	53,681		1,014,034
KVH Industries Inc.1	70,164		1,011,063
Safety Insurance Group Inc.	53,161		1,010,059
1-800-FLOWERS.COM Inc.1	105,399		1,008,668
NIC Inc.1	166,994		1,008,644
SBA Communications Corp.1	259,395		1,006,453
Embarcadero Technologies Inc.1	77,800		998,952
Blair Corp.	37,481		998,869
HealthExtras Inc.1	86,820		996,694
Syntel Inc.	36,060		993,092
National Bankshares Inc.	19,729		992,566
Stanley Furniture Co. Inc.	25,474		989,155
Guilford Pharmaceuticals Inc.1	136,812		989,151
Sequa Corp. Class A1	20,020		988,988
Aftermarket Technology Corp.1	67,227		987,565
Shore Bancshares Inc.	30,257		986,378
Penn Engineering & Manufacturing Corp.	58,076		985,550
Kirkland’s Inc.1	60,338		985,320
NBC Capital Corp.	37,813		983,138
World Wrestling Entertainment Inc.	67,995		982,528
PDI Inc.1	38,816		981,657
McMoRan Exploration Co.1	66,327		981,640
MAPICS Inc.1	121,194		979,248
OMNOVA Solutions Inc.1	186,490		979,073
Collins & Aikman Corp.1	177,936		978,648
Lakeland Financial Corp.	28,938		977,236
Heartland Financial USA Inc.	52,370		976,701
Diversa Corp.1	109,675		971,720
Western Sierra Bancorp1	22,092		970,943
Bentley Pharmaceuticals Inc.1	80,640		968,486
Source Interlink Companies Inc.1	77,338		966,725
PRG-Schultz International Inc.1	219,396		965,342
MTC Technologies Inc.1	38,425		964,852
Digitas Inc.1	93,740		964,585
Metrologic Instruments Inc.1	41,151		962,933
CNA Surety Corp.1	87,007		961,427
Aether Systems Inc.1	206,487		960,165
First of Long Island Corp.	19,105		959,453
Columbia Bancorp	31,129		958,773
National Healthcare Corp.1	36,875		958,750
Intellisync Corp.1	290,970		957,291
Overland Storage Inc.1	56,423		956,370
MIM Corp.1	125,576		955,257
United Security Bancshares Inc.	36,089		954,554
CoBiz Inc.	46,625		952,549
Electro Rent Corp.	94,630		951,978
Immunomedics Inc.1	234,188		948,461
Dave & Buster’s Inc.1	62,724		943,996
Coastal Bancorp Inc.	22,772		941,622
Alliance Semiconductor Corp.1	123,291		938,245
Lightbridge Inc.1	158,755		936,654
Navigators Group Inc.1	32,453		933,997
Riviana Foods Inc.	33,433		932,781
Staar Surgical Co.1	103,841		931,454
Central Coast Bancorp1	50,357		925,058
OPNET Technologies Inc.1	61,948		923,645
Alloy Inc.1	191,869		920,971
IXYS Corp.1	97,887		920,138
Columbia Laboratories Inc.1	185,882		920,116
Bryn Mawr Bank Corp.	40,067		917,534
Hexcel Corp.1	125,956		916,960
Inet Technologies Inc.1	73,773		915,523

64 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 2000 INDEX FUND

March 31, 2004

Security	Shares	Value
State Bancorp Inc.	37,925	$	913,993
Theragenics Corp.1	169,814		913,599
Boykin Lodging Co.1	98,088		910,257
Neoware Systems Inc.1	88,628		910,210
Pain Therapeutics Inc.1	130,396		906,252
MedQuist Inc.1	57,349		902,673
Party City Corp.1	60,457		900,205
German American Bancorp	52,652		897,717
Net2Phone Inc.1	172,635		897,702
SEMCO Energy Inc.	158,386		896,465
La Jolla Pharmaceutical Co.1	323,603		893,144
CNB Financial Corp.	20,487		890,980
Medical Action Industries Inc.1	43,576		890,693
Del Laboratories Inc.1	26,812		890,158
Stratasys Inc.1	46,752		889,691
Lawson Products Inc.	27,232		888,036
OceanFirst Financial Corp.	35,618		887,957
Gene Logic Inc.1	175,715		887,361
GSI Commerce Inc.1	87,401		887,120
GB&T Bancshares Inc.	31,490		886,443
Summit Bancshares Inc.	29,411		885,271
Bebe Stores Inc.1	26,393		885,221
Medis Technologies Ltd.1	66,744		884,358
BroadVision Inc.1	144,226		884,105
White Electronic Designs Corp.1	115,560		884,034
Sipex Corp.1	140,302		883,903
Ducommun Inc.1	37,792		883,199
Charter Financial Corp.	22,259		876,337
Kansas City Life Insurance Co.	20,474		876,082
U.S. Physical Therapy Inc.1	63,425		875,265
Concord Camera Corp.1	138,619		870,527
CSS Industries Inc.	26,157		869,720
CPI Corp.	45,530		866,436
EnergySouth Inc.	24,795		865,569
Zhone Technologies Inc.1	220,985		859,632
Neose Technologies Inc.1	91,265		857,891
Exact Sciences Corp.1	110,122		855,648
Firstbank Corp.	31,995		851,067
Associated Estates Realty Corp.	92,576		848,922
LookSmart Ltd.1	430,772		848,621
Quality Systems Inc.1	18,649		847,224
Tier Technologies Inc. Class B1	79,231		846,979
DHB Industries Inc.1	114,904		846,842
Massbank Corp.	21,232		844,397
Hickory Tech Corp.	67,918		844,221
Penns Woods Bancorp Inc.	18,721		843,943
Wayne Bancorp Inc.	35,877		839,522
Shenandoah Telecommunications Co.	36,730		839,281
Lydall Inc.1	82,057		836,981
NetScout Systems Inc.1	108,533		834,619
Supertex Inc.1	50,025		834,417
Woodhead Industries Inc.	55,455		831,825
GA Financial Inc.	23,675		829,809
BancTrust Financial Group Inc.	47,269		827,207
Republic Bancorp Inc. Class A	42,332		824,205
National Processing Inc.1	43,374		824,106
Cherokee Inc.	35,057		822,402
LSB Bancshares Inc.	47,602		822,087
Group 1 Software Inc.1	50,490		821,977
Heritage Commerce Corp.1	62,962		818,506
Resource Bankshares Corp.	25,105		818,423
Option Care Inc.1	71,690		816,549
FloridaFirst Bancorp Inc.	30,235		815,740
American Mortgage Acceptance Corp.	45,189		815,661
Learning Tree International Inc.1	51,325		815,554
Center Financial Corp.	51,812		815,521
State Financial Services Corp. Class A	28,707		812,121
Advanced Marketing Services Inc.	81,991		811,711
Quixote Corp.	38,590		811,548
CEVA Inc.1	86,204		810,826
Summit America Television Inc.1	200,392		809,584
Aphton Corp.1	171,712		807,046
Cornell Companies Inc.1	69,748		806,984
QAD Inc.1	60,804		806,869
Synovis Life Technologies Inc.1	56,356		805,327
Sykes Enterprises Inc.1	135,305		805,065
Curative Health Services Inc.1	60,030		804,402
Smart & Final Inc.1	69,968		803,233
Virginia Commerce Bancorp Inc.1	26,848		802,755

SCHEDULES OF INVESTMENTS 65

Schedule of Investments (Continued)

iSHARES^® RUSSELL 2000 INDEX FUND

March 31, 2004

Security	Shares	Value
Chesapeake Utilities Corp.	31,299	$	801,880
Gulf Island Fabrication Inc.	39,406		801,518
iGATE Corp.1	114,760		799,877
Bay View Capital Corp.	358,357		799,136
CFS Bancorp Inc.	54,482		798,161
Chicago Pizza & Brewery Inc.1	61,023		797,571
Dominion Homes Inc.1	20,947		797,033
Gerber Scientific Inc.1	117,060		796,008
Young Innovations Inc.	22,661		795,174
VitalWorks Inc.1	211,629		793,609
Pomeroy IT Solutions Inc.	54,685		792,933
Hooker Furniture Corp.	34,114		792,809
Centillium Communications Inc.1	175,397		792,794
Roxio Inc.1	177,165		791,928
E-LOAN Inc.1	254,076		790,176
Three-Five Systems Inc.1	120,443		788,902
First United Corp.	34,144		786,678
IMPAC Medical Systems Inc.1	34,864		784,440
Enstar Group Inc.1	16,982		783,549
M&F Worldwide Corp.1	57,150		782,384
First Defiance Financial Corp.	27,917		777,768
Sauer-Danfoss Inc.	56,853		777,181
Greene County Bancshares Inc.	34,593		775,921
C&F Financial Corp.	19,032		775,744
Princeton Review Inc. (The)1	89,698		774,991
Warwick Valley Telephone Co.	30,326		774,829
Aspect Medical Systems Inc.1	51,939		773,891
Nature’s Sunshine Products Inc.	52,104		773,223
CRIIMI MAE Inc.1	69,267		772,327
Infonet Services Corp. Class B1	387,778		771,678
Diodes Inc.1	35,242		768,628
Penn-America Group Inc.	52,349		767,436
Guess ? Inc.1	42,450		765,374
Raindance Communications Inc.1	268,188		764,336
Mail-Well Inc.1	169,928		759,578
NYFIX Inc.1	147,114		759,108
Martha Stewart Living Omnimedia Inc. Class A1	68,931		758,241
PennFed Financial Services Inc.	21,350		754,936
Drexler Technology Corp.1	55,087		754,692
Provident Financial Holdings Inc.	29,020		753,940
Sizeler Property Investors Inc.	64,712		753,248
SM&A1	68,251		751,444
Santander BanCorp	27,232		748,880
Exchange National Bancshares Inc.	23,487		744,538
Compucom Systems Inc.1	134,996		741,128
Digimarc Corp.1	59,889		740,827
Covenant Transport Inc. Class A1	41,064		740,384
Fargo Electronics1	65,341		738,353
Computer Horizons Corp.1	171,533		737,592
Stellent Inc.1	98,616		736,662
Yadkin Valley Bank & Trust Co.	43,906		735,426
PMA Capital Corp. Class A	120,581		731,927
Ambassadors Group Inc.	29,489		729,263
D&K Healthcare Resources Inc.	71,059		728,355
Insurance Auto Auctions Inc.1	49,457		718,610
Boston Beer Co. Inc. Class A1	38,909		716,704
Sigma Designs Inc.1	99,871		716,075
Sanders Morris Harris Group Inc.	59,358		710,515
Kana Software Inc.1	157,427		709,996
IBT Bancorp Inc.	14,681		705,422
Pegasus Communications Corp.1	18,399		705,418
NN Inc.	60,328		704,028
CollaGenex Pharmaceuticals Inc.1	52,649		701,285
Innovex Inc.1	103,011		699,445
Steinway Musical Instruments Inc.1	21,772		697,793
Superconductor Technologies Inc.1	302,554		695,874
Datastream Systems Inc.1	96,890		693,732
Columbia Bancorp (Oregon)	42,282		693,425
Camco Financial Corp.	42,210		690,978
Cantel Medical Corp.1	38,598		690,518
Triton PCS Holdings Inc. Class A1	125,158		687,117
NASB Financial Inc.	17,255		686,404
Trans World Entertainment Corp.1	72,084		683,356
Duratek Inc.1	42,915		682,778
Cholestech Corp.1	77,331		680,513
Citizens South Banking Corp.	50,047		679,638
Parkvale Financial Corp.	23,651		677,838
Marine Products Corp.	48,355		676,486
Medallion Financial Corp.	78,100		675,565
Seaboard Corp.	2,005		671,675
Clayton Williams Energy Inc.1	19,343		671,202

66 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 2000 INDEX FUND

March 31, 2004

Security	Shares	Value
First South Bancorp Inc.	17,260	$	669,688
Westfield Financial Inc.	27,194		669,516
First Consulting Group Inc.1	106,737		668,174
Bankrate Inc.1	33,516		667,304
Center Bancorp Inc.	42,180		666,866
TradeStation Group Inc.1	98,557		663,289
Virage Logic Corp.1	71,545		661,648
Computer Programs & Systems Inc.	34,815		661,485
National Health Realty Inc.	35,307		659,535
America’s Car-Mart Inc.1	24,442		658,712
Stepan Co.	28,834		658,569
Milacron Inc.	189,725		658,346
Pacific Union Bank	22,377		656,765
Westmoreland Coal Co.1	35,657		654,306
BHA Group Inc.	21,796		653,662
Powell Industries Inc.1	36,783		653,266
Paxson Communications Corp.1	167,294		652,447
Friedman’s Inc.	111,964		649,391
Great Atlantic & Pacific Tea Co.1	83,672		647,621
First M&F Corp.	19,141		644,860
Merchants Bancshares Inc.	22,610		644,611
Genencor International Inc.1	48,418		644,444
Commercial Bankshares Inc.	23,637		641,035
Security Bank Corp.	21,249		637,470
Eastern Virginia Bankshares	27,609		635,835
Kronos Worldwide Inc.	20,981		635,529
NetRatings Inc.1	57,413		634,414
American National Bankshares Inc.	25,829		633,585
PEC Solutions Inc.1	47,912		633,397
Royal Bancshares of Pennsylvania Class A	24,838		633,369
Deb Shops Inc.	24,539		630,898
First Citizens Banc Corp.	23,689		630,364
Ulticom Inc.1	61,360		629,554
CyberGuard Corp.1	63,914		629,553
Shoe Carnival Inc.1	40,567		628,383
Foothill Independent Bancorp	28,474		626,428
Finlay Enterprises Inc.1	34,760		626,028
Alico Inc.	19,614		625,667
Exactech Inc.1	33,912		623,981
Mothers Work Inc.1	23,398		623,557
FFLC Bancorp Inc.	23,055		620,410
Maritrans Inc.	39,449		619,744
Third Wave Technologies Inc.1	134,423		619,690
Register.com1	104,387		617,971
Oak Hill Financial Inc.	18,772		612,906
EverTrust Financial Group Inc.	33,558		612,098
Rex Stores Corp.1	38,823		611,074
Arena Pharmaceuticals Inc.1	93,963		610,759
RPC Inc.	54,722		609,603
Vitria Technology Inc.1	103,377		607,960
Pemstar Inc.1	166,109		606,298
MutualFirst Financial Inc.	25,115		604,518
Heritage Financial Corp.	28,831		602,280
Maui Land & Pineapple Co. Inc.1	17,349		601,316
Century Bancorp Inc. Class A	18,073		598,036
TransMontaigne Inc.1	97,991		597,745
Great American Financial Resources Inc.	37,835		596,280
Pantry Inc. (The)1	29,865		594,911
Financial Industries Corp.1	44,752		593,412
Sun Bancorp Inc. (Pennsylvania)	30,410		592,995
Arden Group Inc. Class A	7,827		590,938
Seabulk International Inc.1	66,363		590,631
CryoLife Inc.1	99,260		590,597
FNB Corp. (North Carolina)	27,693		590,138
Restoration Hardware Inc.1	118,452		588,706
Vastera Inc.1	151,511		587,863
Standard Motor Products Inc.	37,447		587,169
Weyco Group Inc.	16,035		587,041
American Land Lease Inc.	28,678		585,892
Franklin Financial Corp.	18,558		585,690
Bruker BioSciences Corp.1	115,625		579,281
General Binding Corp.1	34,065		579,105
Dril-Quip Inc.1	35,146		577,800
NL Industries Inc.	41,540		577,406
Schawk Inc.	42,928		574,377
Radiant Systems Inc.1	95,469		573,988
Perry Ellis International Inc.1	20,875		573,854
Sypris Solutions Inc.	33,726		573,342
PICO Holdings Inc.1	34,842		572,454
Meridian Bioscience Inc.	56,013		570,829

SCHEDULES OF INVESTMENTS 67

Schedule of Investments (Continued)

iSHARES^® RUSSELL 2000 INDEX FUND

March 31, 2004

Security	Shares	Value
First Albany Companies Inc.	41,109	$	568,949
Crown Media Holdings Inc.1	70,184		567,789
Star Scientific Inc.1	136,768		564,852
Durect Corp.1	165,861		563,927
Catapult Communications Corp.1	31,597		563,343
Osteotech Inc.1	87,031		561,350
ESB Financial Corp.	40,082		561,148
Independence Holding Co.	18,198		560,680
Gundle/SLT Environmental Inc.1	30,193		556,155
Lannett Co. Inc.1	33,248		555,242
Chronimed Inc.1	71,283		553,869
Tarragon Realty Investors Inc.1	38,859		553,741
P.A.M. Transportation Services Inc.1	31,986		553,358
Warwick Community Bancorp	16,497		552,650
Whitehall Jewellers Inc.1	60,459		552,595
Hi-Tech Pharmacal Co.1	27,921		545,856
Research Frontiers Inc.1	55,871		543,066
LNB Bancorp Inc.	26,120		538,594
DigitalThink Inc.1	227,140		538,322
Hollis-Eden Pharmaceuticals1	55,444		535,035
Ansoft Corp.1	37,040		534,117
Alamo Group Inc.	30,660		533,177
1-800 CONTACTS INC.1	30,239		532,509
ACLARA BioSciences Inc.1	135,472		531,050
Reading International Inc. Class A1	77,230		529,026
Nassda Corp.1	75,649		525,004
aaiPharma Inc.1	78,833		522,663
Ingles Markets Inc. Class A	48,479		519,065
Greenbrier Companies Inc.1	30,609		516,986
McLeodUSA Inc. Class A1	346,638		516,491
Petroleum Helicopters Inc.1	20,788		513,464
Sanchez Computer Associates Inc.1	78,087		510,689
Dover Downs Gaming & Entertainment Inc.	47,616		509,967
Repligen Corp.1	168,625		507,561
Vital Images Inc.1	50,199		503,998
PAB Bankshares Inc.	39,481		501,409
United Mobile Homes Inc.	31,113		501,230
MAIR Holdings Inc.1	54,465		497,810
APAC Customer Services Inc.1	167,719		494,771
Synplicity Inc.1	68,490		493,128
Material Sciences Corp.	44,596		490,556
Taylor Capital Group Inc.	21,266		490,181
Medical Staffing Network Holdings Inc.1	62,170		489,278
Neoforma Inc.1	44,606		484,867
Cavalry Bancorp Inc.	28,643		483,207
First Federal Financial of Kentucky	18,100		476,030
United Security Bancshares	19,057		470,708
Flag Financial Corp.	36,702		470,153
Dobson Communications Corp. Class A1	162,281		468,992
BRT Realty Trust	19,502		465,318
Greater Community Bancorp	28,838		464,003
MarketWatch.com Inc.1	33,226		463,170
Price Legacy Corporation1	26,986		460,111
Technical Olympic USA Inc.1	14,232		455,424
Horizon Offshore Inc.1	150,280		455,348
Donegal Group Inc. Class A	22,506		451,020
U.S. Xpress Enterprises Inc. Class A1	31,651		449,761
SAFLINK Corp.1	145,366		447,727
Inter Parfums Inc.	19,474		447,707
Pegasystems Inc.1	53,791		442,162
Centennial Communications Corp.1	64,556		436,399
Ambassadors International Inc.	33,305		434,630
Northern States Financial Corp.	16,199		431,217
Sierra Bancorp	28,433		430,760
Richardson Electronics Ltd.	35,191		426,163
ICT Group Inc.1	31,448		421,403
Specialty Laboratories Inc.1	38,895		420,066
Value Line Inc.	7,780		410,239
Beasley Broadcast Group Inc. Class A1	23,275		409,640
Ultimate Electronics Inc.1	61,658		402,627
Green Mountain Coffee Roasters Inc.1	19,766		398,483
AVI BioPharma Inc.1	129,879		393,533
Community Bank of Northern Virginia	23,049		392,985
National Beverage Corp.	41,106		391,329
Alteon Inc.1	215,457		387,823

68 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 2000 INDEX FUND

March 31, 2004

Security	Shares	Value
Old Point Financial Corp.	12,815	$	384,450
Carmike Cinemas Inc.1	10,203		380,276
Galyan’s Trading Co.1	37,786		380,127
Acme Communications Inc.1	47,591		377,873
FMS Financial Corp.	21,258		372,015
Mobius Management Systems Inc.1	40,599		370,669
United PanAm Financial Corp.1	22,566		360,830
Emerson Radio Corp.1	92,420		353,044
InteliData Technologies Corp.1	279,424		346,486
GTC Biotherapeutics Inc.1	154,576		340,067
United Capital Corp.	15,475		338,593
Ampco-Pittsburgh Corp.	26,111		337,093
Modtech Holdings Inc.1	44,303		328,285
Clean Harbors Inc.1	43,739		324,106
TheStreet.com Inc.1	70,833		322,290
Fairchild Corp. (The) Class A1	64,535		321,384
Dover Motorsports Inc.	82,642		318,172
Interland Inc.1	76,430		315,656
Crawford & Co. Class B	61,199		310,891
Novoste Corp.1	91,492		310,158
NYMAGIC Inc.	12,221		309,191
Mestek Inc.1	17,178		308,860
Liquidmetal Technologies1	95,917		305,975
Optical Communication Products Inc.1	90,933		299,170
Biopure Corp.1	188,488		297,811
PC Connection Inc.1	37,697		297,429
Hampshire Group Ltd.1	9,700		295,656
Systemax Inc.1	52,297		276,128
Wilsons The Leather Experts Inc.1	98,450		274,676
Cerus Corp.1	82,010		273,093
EMC Insurance Group Inc.	12,765		268,831
Boyds Collection Ltd. (The)1	105,686		265,272
Convera Corp.1	73,909		262,377
Alliance Imaging Inc.1	67,098		261,682
Omega Protein Corp.1	34,818		253,127
SimpleTech Inc.1	52,225		248,069
Newtek Business Services Inc.1	46,990		244,348
Metro One Telecommunications Inc.1	105,220		242,006
Digital Generation Systems Inc.1	160,137		241,807
Micro Therapeutics Inc.1	57,520		241,584
Retractable Technologies Inc.1	37,499		235,494
Orleans Homebuilders Inc.1	9,597		230,808
Blount International Inc.1	22,668		226,680
Nuance Communications Inc.1	32,224		211,067
Oneida Ltd.	82,372		201,811
Oneida Financial Corp.	14,020		196,280
Noland Co.	3,609		171,716
Dynacq Healthcare Inc.1	32,406		171,104
Hungarian Telephone and Cable Corp.1	18,592		169,001
Sirna Therapeutics Inc.1	40,232		162,940
Revlon Inc. Class A1	56,388		156,195
Atari Inc.1	45,662		155,707
Transcontinental Realty Investments Inc.1	9,151		132,781
Raytech Corp.1	41,350		119,088
American Realty Investors Inc.1	11,741		112,831
RCN Corp.1	307,085		89,055
Redback Networks Inc.1	12,011		75,670
Sports Resorts International Inc.1	8,724		34,111
PetroCorp Inc.2	26,106		—
WilTel Communications Group Inc.2	122,818		—
TOTAL COMMON STOCKS (Cost: $5,240,612,228)			5,276,884,489
SHORT-TERM INVESTMENTS – 19.49%
MONEY MARKET FUNDS – 7.35%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares3,4	266,600,259		266,600,259
Barclays Global Investors Funds Prime Money Market Fund, Institutional Shares3,4	94,961,278		94,961,278
BlackRock Temp Cash Money Market Fund3	4,444,935		4,444,935
Short-Term Investment Co. – Liquid Assets Money Market Portfolio3	22,135,149		22,135,149
			388,141,621

SCHEDULES OF INVESTMENTS 69

Schedule of Investments (Continued)

iSHARES^® RUSSELL 2000 INDEX FUND

March 31, 2004

Security	Principal		Value
FLOATING RATE NOTES – 3.97%
Beta Finance Inc.
1.05%, 05/20/043,5	$	4,316,422	$	4,316,335
1.05%, 09/15/043,5		8,632,843		8,632,450
1.06%, 10/12/043,5		4,316,422		4,316,195
1.14%, 08/23/043,5		4,316,422		4,317,876
CC USA Inc.
1.05%, 04/19/043,5		3,798,451		3,798,442
1.06%, 05/24/043,5		8,632,843		8,632,719
1.09%, 07/15/043,5		4,316,422		4,316,868
1.51%, 02/15/053,5		5,611,349		5,619,155
Dorada Finance Inc.
1.04%, 07/01/043		3,021,494		3,013,552
1.05%, 05/20/043,5		8,632,843		8,632,670
1.24%, 08/09/043		2,158,211		2,158,095
1.48%, 01/18/053,5		6,474,633		6,474,376
Five Finance Inc.
1.06%, 04/15/043,5		4,316,422		4,316,422
HBOS Treasury Services PLC
1.10%, 04/22/053		8,632,843		8,632,843
Holmes Financing PLC
1.05%, 04/15/043		863,284		863,284
K2 USA LLC
1.05%, 08/16/043,5		2,158,211		2,158,090
1.05%, 09/27/043,5		9,323,471		9,322,789
1.06%, 04/13/043		4,316,422		4,316,415
1.06%, 05/17/043		4,316,422		4,316,395
1.46%, 01/12/053,5		4,316,422		4,316,084
Links Finance LLC
1.05%, 06/28/043		4,316,422		4,316,215
1.06%, 05/04/043		4,316,422		4,316,402
1.06%, 07/20/043		3,453,137		3,452,929
Nationwide Building Society
1.09%, 07/23/043,5		6,474,633		6,474,633
1.11%, 12/28/043,5		8,632,843		8,632,843
Northern Rock PLC
1.11%, 01/13/053,5		8,201,201		8,201,201
Permanent Financing PLC
1.04%, 03/10/053		8,632,843		8,632,843
1.05%, 12/10/043		4,316,422		4,316,422
Sigma Finance Inc.
1.05%, 07/01/043		4,316,422		4,316,154
1.06%, 07/20/043		4,316,422		4,316,163
1.09%, 10/07/043		8,632,843		8,631,952
1.24%, 08/06/043		2,158,211		2,158,136
Tango Finance Corp.
1.05%, 01/18/053,5		3,798,451		3,798,144
1.06%, 07/15/043,5		2,589,853		2,589,607
1.07%, 02/25/053,5		4,834,392		4,833,521
1.10%, 07/06/043,5		2,589,853		2,589,783
WhistleJacket Capital LLC
1.05%, 09/15/043,5		4,316,422		4,316,028
1.32%, 02/04/053,5		2,158,211		2,157,846
White Pine Finance LLC
1.04%, 08/26/043,5		4,316,422		4,316,154
1.05%, 11/15/043,5		5,179,706		5,179,706
1.06%, 04/20/043,5		4,316,422		4,316,422
1.06%, 07/06/043,5		5,179,706		5,179,575
				209,513,734
COMMERCIAL PAPER – 3.66%
Alpine Securitization Corp.
1.03%, 04/14/043		4,057,436		4,055,927
1.03%, 04/20/043		4,316,421		4,314,075
1.03%, 04/23/043		5,093,377		5,090,172
1.03%, 04/26/043		4,316,421		4,313,334
Amsterdam Funding Corp.
1.03%, 05/05/043		3,496,301		3,492,900
Barton Capital Corp.
1.03%, 04/02/043		4,498,488		4,498,360
Blue Ridge Asset Funding Corp.
1.02%, 04/23/043		2,589,853		2,588,239
1.03%, 05/21/043		4,316,422		4,310,247
Corporate Asset Funding
1.05%, 05/21/043		4,489,078		4,482,563
Corporate Receivables Corp.
1.03%, 04/07/043		4,316,422		4,315,681
1.04%, 06/03/043		8,632,842		8,617,132
Delaware Funding Corp.
1.03%, 04/02/043		4,316,422		4,316,298
1.03%, 05/05/043		6,481,797		6,475,492
1.03%, 05/21/043		2,158,210		2,155,123

70 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 2000 INDEX FUND

March 31, 2004

Security	Principal		Value
Edison Asset Securitization
1.07%, 09/21/043	$	4,316,419	$	4,294,227
Eureka Securitization Inc.
1.03%, 05/25/043		1,726,568		1,723,901
1.04%, 04/14/043		5,179,706		5,177,761
Falcon Asset Securitization
1.03%, 04/15/043		5,187,734		5,185,657
1.03%, 04/22/043		5,093,377		5,090,317
1.03%, 04/30/043		4,316,421		4,312,840
Galaxy Funding Inc.
1.05%, 05/17/043		4,316,421		4,310,658
Gemini Securitization Corp.
1.03%, 04/20/043		2,591,579		2,590,171
1.03%, 04/23/043		4,988,661		4,985,521
1.03%, 04/30/043		3,025,207		3,022,697
1.03%, 05/24/043		2,158,210		2,154,938
1.04%, 04/19/043		2,158,211		2,157,089
GIRO Funding US Corp.
1.05%, 05/19/043		2,158,210		2,155,189
Jupiter Securitization Corp.
1.03%, 04/16/043		8,632,843		8,629,139
1.03%, 04/19/043		11,654,338		11,648,337
1.03%, 04/28/043		5,179,706		5,175,705
1.03%, 04/30/043		7,353,024		7,346,923
Liberty Street Funding Corp.
1.04%, 04/08/043		3,024,603		3,023,991
1.05%, 04/05/043		3,496,302		3,495,894
Polonius Inc.
1.04%, 05/21/043		4,994,099		4,986,886
Preferred Receivables Funding Corp.
1.03%, 04/19/043		9,064,485		9,059,817
1.04%, 04/23/043		9,927,769		9,921,460
1.04%, 05/20/043		2,158,210		2,155,156
Receivables Capital Corp.
1.04%, 04/14/043		3,798,451		3,797,025
Scaldis Capital LLC
1.05%, 06/30/043		3,090,557		3,082,445
Thames Asset Global Securitization No. 1 Inc.
1.03%, 04/19/043		4,316,421		4,314,199
Thunder Bay Funding Inc.
1.03%, 04/19/043		2,745,676		2,744,262
1.04%, 04/29/043		3,888,232		3,885,088
				193,452,836
TIME DEPOSITS – 3.13%
Abbey National Treasury Services PLC
1.08%, 04/01/043		30,214,952		30,214,952
1.33%, 02/10/053		4,316,422		4,315,862
1.39%, 02/02/053		4,316,422		4,315,876
1.40%, 10/25/043		8,632,843		8,632,109
Bank of New York
1.39%, 11/01/043		8,632,843		8,632,338
Bank of Nova Scotia
1.24%, 10/07/043		6,474,633		6,474,297
1.42%, 10/29/043		6,474,633		6,474,913
Canadian Imperial Bank of Commerce
1.24%, 10/07/043		6,474,633		6,474,129
1.38%, 11/22/043		2,158,211		2,158,316
1.40%, 10/29/043		8,632,843		8,632,719
National City Bank (Cleveland, Ohio)
1.02%, 04/01/043		12,949,265		12,949,265
Toronto-Dominion Bank
1.04%, 06/22/043		2,158,211		2,158,211
1.22%, 03/23/053		15,107,476		15,104,894
1.34%, 02/10/053		3,453,137		3,452,690
1.41%, 11/01/043		6,474,633		6,474,253
UBS Finance (Delaware)
1.06%, 04/01/043		17,265,687		17,265,687
1.10%, 09/08/043		8,632,838		8,590,638
1.11%, 12/17/043		12,949,253		12,845,455
				165,166,604
REPURCHASE AGREEMENTS – 0.98%
Bank of America, NA
1.06%, 04/01/043		17,265,687		17,265,687
Goldman, Sachs & Co.
1.08%, 04/01/043		34,531,374		34,531,374
				51,797,061

SCHEDULES OF INVESTMENTS 71

Schedule of Investments (Continued)

iSHARES^® RUSSELL 2000 INDEX FUND

March 31, 2004

Security	Principal		Value
U.S. GOVERNMENT AGENCY NOTES – 0.40%
Federal Home Loan Mortgage Corporation
1.15%, 05/12/043	$	6,474,632	$	6,466,153
1.28%, 08/19/043		3,453,135		3,435,948
Federal National Mortgage Association
1.28%, 08/20/043		11,222,690		11,166,433
				21,068,534
TOTAL SHORT-TERM INVESTMENTS (Cost: $1,029,140,390)				1,029,140,390
TOTAL INVESTMENTS IN SECURITIES – 119.42% (Cost: $6,269,752,618)				6,306,024,879
Other Assets, Less Liabilities – (19.42%)				(1,025,622,584	)
NET ASSETS – 100.00%			$	5,280,402,295

¹ Non-income earning securities.

² Security valued at fair value in accordance with procedures approved by the Board of Trustees. See Note 1.

³ All or a portion of this security represents investments of securities lending collateral.

⁴ Issuer is an affiliate of the Fund’s investment advisor. See Note 2.

⁵ Security exempt from registration under Rule 144A of the Securities Act of 1933.

These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

See notes to financial statements

72 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® RUSSELL 2000 GROWTH INDEX FUND

March 31, 2004

Security	Shares	Value
COMMON STOCKS – 99.97%
Conexant Systems Inc.1	1,359,264	$	8,373,066
Cytyc Corp.1	369,325		8,217,481
MGI Pharma Inc.1	115,426		7,070,997
Covance Inc.1	202,430		6,971,689
NBTY Inc.1	169,642		6,307,290
Accredo Health Inc.1	157,353		5,995,149
Cooper Companies Inc.	108,645		5,866,830
Pacific Sunwear of California Inc.1	232,776		5,712,323
UCBH Holdings Inc.	137,922		5,522,397
TECHNE Corp.1	134,257		5,479,028
Titan Corp. (The)1	262,641		5,302,722
Gen-Probe Inc.1	156,814		5,239,156
Alliance Gaming Corp.1	162,560		5,223,053
Affiliated Managers Group Inc.1	95,559		5,215,610
Hyperion Solutions Corp.1	125,608		5,206,452
IMC Global Inc.	356,879		5,103,370
Dade Behring Holdings Inc.1	113,326		5,040,740
Oshkosh Truck Corp.	90,151		5,021,411
Take-Two Interactive Software Inc.1	135,593		4,987,111
INAMED Corp.1	92,611		4,934,314
Brink’s Co. (The)	178,697		4,928,463
OSI Pharmaceuticals Inc.1	127,612		4,900,301
Evergreen Resources Inc.1	140,777		4,835,690
Plantronics Inc.1	132,064		4,834,863
Vitesse Semiconductor Corp.1	677,076		4,800,469
Roper Industries Inc.	99,408		4,796,436
RF Micro Devices Inc.1	566,109		4,789,282
Couer d’Alene Mines Corp.1	679,420		4,755,940
Martek Biosciences Corp.1	83,011		4,731,627
Novastar Financial Inc.	71,171		4,693,727
Western Wireless Corp. Class A1	199,930		4,672,364
Cymer Inc.1	119,709		4,621,964
Sybase Inc.1	219,876		4,615,197
Pediatrix Medical Group Inc.1	72,747		4,583,061
NII Holdings Inc. Class B1	130,688		4,578,001
Onyx Pharmaceuticals Inc.1	112,722		4,560,732
Avid Technology Inc.1	98,229		4,531,304
Akamai Technologies Inc.1	338,490		4,447,759
Medicines Co. (The)1	137,331		4,423,432
Semtech Corp.1	193,429		4,415,984
Sonic Corp.1	127,454		4,369,123
Ask Jeeves Inc.1	122,107		4,362,883
Patina Oil & Gas Corp.	165,261		4,338,101
W Holding Co. Inc.	228,747		4,275,281
AMR Corp.1	334,317		4,255,855
OmniVision Technologies Inc.1	155,835		4,255,854
New Century Financial Corp.	87,469		4,247,495
Nektar Therapeutics1	196,610		4,242,844
P.F. Chang’s China Bistro Inc.1	83,286		4,190,119
East West Bancorp Inc.	74,511		4,172,616
Varian Semiconductor Equipment Associates Inc.1	98,634		4,142,628
Hot Topic Inc.1	155,229		4,105,807
Strayer Education Inc.	35,082		4,103,542
CACI International Inc. Class A1	94,597		4,067,671
Sylvan Learning Systems Inc.1	114,976		4,036,807
LifePoint Hospitals Inc.1	123,377		3,990,012
Cerner Corp.1	88,140		3,983,047
Ligand Pharmaceuticals Inc. Class B1	198,119		3,982,192
Hilb, Rogal & Hamilton Co.	104,119		3,966,934
Tularik Inc.1	160,173		3,932,247
Flir Systems Inc.1	102,755		3,917,021
Quiksilver Inc.1	178,715		3,904,923
Urban Outfitters Inc.1	80,875		3,886,853
Varian Inc.1	96,404		3,872,549
Mentor Corp.	126,447		3,806,055
Trimble Navigation Ltd.1	165,792		3,801,611
Landstar System Inc.1	90,774		3,716,288
Tractor Supply Co.1	95,848		3,711,235
Cognex Corp.	111,604		3,710,833
SCP Pool Corp.1	98,446		3,668,098
AMERIGROUP Corp.1	78,799		3,601,114
Mentor Graphics Corp.1	200,245		3,568,366
Panera Bread Co. Class A1	91,582		3,564,371
VCA Antech Inc.1	99,604		3,548,891
CEC Entertainment Inc.1	102,265		3,548,578
Tetra Tech Inc.1	165,103		3,543,110
Toro Co.	57,058		3,537,596
Southwest Bancorp of Texas Inc.	93,071		3,511,569
Waste Connections Inc.1	87,687		3,489,943

SCHEDULES OF INVESTMENTS 73

Schedule of Investments (Continued)

iSHARES^® RUSSELL 2000 GROWTH INDEX FUND

March 31, 2004

Security	Shares	Value
Unit Corporation1	126,358	$	3,464,736
Vicuron Pharmaceuticals Inc.1	152,133		3,461,026
CNET Networks Inc.1	332,707		3,436,863
Alkermes Inc.1	211,675		3,384,683
Telik Inc.1	125,226		3,361,066
Pennsylvania Real Estate Investment Trust	88,595		3,336,488
PETCO Animal Supplies Inc.1	117,943		3,323,634
TrustCo Bank Corp. NY	245,307		3,301,832
Lexar Media Inc.1	198,632		3,289,346
Skyworks Solutions Inc.1	281,888		3,286,814
Andrew Corp.1	186,756		3,268,230
Maverick Tube Corp.1	137,968		3,249,146
CLARCOR Inc.	73,308		3,236,548
Kroll Inc.1	118,791		3,189,538
F5 Networks Inc.1	94,182		3,188,061
Kronos Inc.1	97,814		3,181,889
FileNET Corp.1	118,608		3,160,903
Thor Industries Inc.	117,668		3,160,562
Wintrust Financial Corp.	64,901		3,156,136
NDCHealth Corp.	114,730		3,114,920
Matthews International Corp. Class A	93,789		3,113,795
RSA Security Inc.1	165,191		3,103,939
Fred’s Inc.	127,179		3,086,634
Scientific Games Corp. Class A1	162,266		3,037,620
United Natural Foods Inc.1	63,067		3,032,892
ILEX Oncology Inc.1	126,249		3,019,876
CAL Dive International Inc.1	115,492		2,983,158
EarthLink Inc.1	336,123		2,978,050
Navigant Consulting Co.1	147,206		2,977,977
CMGI Inc.1	1,215,440		2,977,828
Engineered Support Systems Inc.	60,925		2,972,531
Airtran Holdings Inc.1	249,877		2,968,539
LTX Corp.1	195,952		2,958,875
CSG Systems International Inc.1	172,170		2,957,881
MacDermid Inc.	83,572		2,940,899
Cost Plus Inc.1	70,426		2,940,285
NPS Pharmaceuticals Inc.1	102,400		2,923,520
American Eagle Outfitters Inc.1	108,179		2,916,506
Penn National Gaming Inc.1	101,360		2,916,127
Diagnostic Products Corp.	67,080		2,904,564
Dionex Corp.1	54,862		2,896,714
Resources Connection Inc.1	64,854		2,861,294
Parametric Technology Corp.1	632,675		2,859,691
Texas Regional Bancshares Inc. Class A	67,019		2,851,658
Emmis Communications Corp.1	119,504		2,845,390
Aeroflex Inc.1	211,048		2,840,706
Southwestern Energy Co.1	117,012		2,822,329
Cathay General Bancorp	42,746		2,813,542
Rogers Corp.1	52,507		2,802,299
Openwave Systems Inc.1	209,312		2,792,222
Sierra Health Services Inc.1	76,678		2,791,079
Tekelec1	167,630		2,780,982
Inveresk Research Group Inc.1	97,550		2,772,371
Align Technology Inc.1	145,550		2,766,905
Transaction Systems Architects Inc. Class A1	119,238		2,759,167
Commonwealth Telephone Enterprises Inc.1	67,251		2,757,964
Sybron Dental Specialties Inc.1	100,772		2,746,037
Owens & Minor Inc.	108,453		2,743,861
AtheroGenics Inc.1	119,967		2,743,645
Brooks Automation Inc.1	130,369		2,735,142
Hollinger International Inc.	138,136		2,735,093
Pacific Capital Bancorp	68,042		2,699,226
Rare Hospitality International Inc.1	97,161		2,696,218
Select Medical Corp.	161,358		2,694,679
Intergraph Corp.1	111,192		2,688,623
Fossil Inc.1	79,456		2,649,858
Yankee Candle Co. Inc. (The)1	95,954		2,646,411
Sonus Networks Inc.1	708,416		2,628,223
KV Pharmaceuticals Co.1	106,468		2,614,854
Power Integrations Inc.1	88,994		2,610,194
Headwaters Inc.1	101,691		2,605,323
MICROS Systems Inc.1	57,404		2,591,791
NetFlix Inc.1	75,326		2,570,123
Dick’s Sporting Goods Inc.1	44,059		2,561,590
Cabot Microelectronics Corp.1	60,594		2,559,491
Shuffle Master Inc.1	54,784		2,546,908
Trust Co. of New Jersey (The)	61,008		2,532,442
Watson Wyatt & Co. Holdings1	99,882		2,521,022

74 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 2000 GROWTH INDEX FUND

March 31, 2004

Security	Shares	Value
Macrovision Corp.1	134,945	$	2,520,773
Cumulus Media Inc. Class A1	125,119		2,501,129
Ariba Inc.1	883,865		2,492,499
eResearch Technology Inc.1	88,341		2,477,965
Washington Real Estate Investment Trust	76,296		2,475,805
WebEx Communications Inc.1	82,839		2,462,803
Micrel Inc.1	184,404		2,461,793
Catalina Marketing Corp.1	126,309		2,449,132
Kos Pharmaceuticals Inc.1	60,043		2,446,152
Christopher & Banks Corp.	115,785		2,444,221
VISX Inc.1	125,054		2,441,054
Olin Corp.	136,750		2,440,988
Lattice Semiconductor Corp.1	278,734		2,433,348
Impax Laboratories Inc.1	108,654		2,430,590
DSP Group Inc.1	94,418		2,429,375
Priority Healthcare Corp. Class B1	113,775		2,422,270
SafeNet Inc.1	64,416		2,418,175
Boyd Gaming Corp.	105,438		2,413,476
Nordson Corp.	64,218		2,405,606
Simpson Manufacturing Co. Inc.1	48,898		2,393,557
Aeropostale Inc.1	65,965		2,391,891
Winnebago Industries Inc.	76,468		2,383,508
Community First Bankshares Inc.	74,094		2,381,381
Vertex Pharmaceuticals Inc.1	252,590		2,379,398
Wilson Greatbatch Technologies Inc.1	65,502		2,376,413
ProAssurance Corp.1	67,863		2,375,205
Harland (John H.) Co.	76,322		2,375,141
Hollywood Entertainment Corp.1	174,988		2,372,837
Jarden Corp.1	66,725		2,369,405
Tupperware Corp.	132,887		2,366,717
Too Inc.1	112,434		2,355,492
Silicon Image Inc.1	228,501		2,353,560
CVB Financial Corp.	113,063		2,347,188
United Online Inc.1	140,632		2,342,929
Advanced Medical Optics Inc.1	95,501		2,330,224
ATMI Inc.1	88,226		2,322,108
Advanced Digital Information Corp.1	203,926		2,320,678
Zoran Corp.1	133,495		2,317,473
Power-One Inc.1	208,759		2,308,875
Grey Wolf Inc.1	554,325		2,294,906
ProQuest Co.1	78,260		2,282,844
Hercules Inc.1	198,679		2,280,835
Silicon Storage Technology Inc.1	175,400		2,269,676
Connetics Corp.1	102,123		2,264,067
FTI Consulting Inc.1	135,631		2,259,612
Champion Enterprises Inc.1	211,081		2,237,459
Applera Corp. – Celera Genomics Group1	153,922		2,233,408
ADVO Inc.	69,173		2,228,754
Harmonic Inc.1	229,932		2,218,844
Baldor Electric Co.	96,353		2,214,192
Enzon Pharmaceuticals Inc.1	143,087		2,207,832
Entegris Inc.1	173,790		2,200,181
Progress Software Corp.1	91,264		2,189,423
Symyx Technologies Inc.1	76,257		2,184,000
Harleysville National Corp.	78,292		2,178,866
Advanced Neuromodulation Systems Inc.1	59,747		2,156,269
Checkpoint Systems Inc.1	113,598		2,147,002
United Community Banks Inc.	60,076		2,141,109
Therasense Inc.1	79,260		2,136,850
Boston Private Financial Holdings Inc.	76,249		2,134,972
R&G Financial Corp. Class B	61,779		2,133,847
Grey Global Group Inc.	3,091		2,132,790
CARBO Ceramics Inc.	33,818		2,128,843
Digital Insight Corp.1	102,471		2,123,199
Ascential Software Corp.1	96,620		2,117,910
Borland Software Corp.1	232,994		2,115,587
Quest Software Inc.1	129,302		2,114,088
Littelfuse Inc.1	56,681		2,108,533
American Healthways Inc.1	86,201		2,105,028
Delta & Pine Land Co.	84,227		2,101,464
Digital River Inc.1	89,537		2,096,061
Brady Corp. Class A	55,003		2,094,514
Oceaneering International Inc.1	68,651		2,090,423
Helix Technology Corp.	85,946		2,084,191
InVision Technologies Inc.1	41,307		2,051,719
Dime Community Bancshares	100,396		2,043,059

SCHEDULES OF INVESTMENTS 75

Schedule of Investments (Continued)

iSHARES^® RUSSELL 2000 GROWTH INDEX FUND

March 31, 2004

Security	Shares	Value
InfoSpace Inc.1	52,324	$	2,033,834
CUNO Inc.1	45,089		2,023,594
Taubman Centers Inc.	79,778		2,008,012
Manhattan Associates Inc.1	71,764		1,995,039
Wabash National Corp.1	84,498		1,994,153
Select Comfort Corp.1	72,193		1,991,805
Odyssey Healthcare Inc.1	105,272		1,984,377
Heartland Express Inc.	87,053		1,983,067
Teledyne Technologies Inc.1	105,929		1,980,872
AmSurg Corp.1	87,035		1,976,565
IDX Systems Corp.1	56,793		1,965,038
Thoratec Corp.1	157,014		1,961,105
American Italian Pasta Co. Class A	49,095		1,960,363
Integra LifeSciences Holdings Corp.1	63,519		1,944,952
Pixelworks Inc.1	113,446		1,943,330
ANSYS Inc.1	48,767		1,938,001
TriQuint Semiconductor Inc.1	265,323		1,936,858
Idex Corp.	44,234		1,923,294
United Surgical Partners International Inc.1	56,644		1,922,497
Kulicke & Soffa Industries Inc.1	163,745		1,919,091
Websense Inc.1	64,702		1,915,826
Knight Transportation Inc.1	79,892		1,915,810
Internet Security Systems Inc.1	108,587		1,915,475
Informatica Corp.1	222,320		1,909,729
Perot Systems Corp. Class A1	143,499		1,908,537
Nabi Biopharmaceuticals1	121,927		1,895,965
InterVoice-Brite Inc.1	112,304		1,894,568
Sotheby’s Holdings Inc. Class A1	146,749		1,885,725
Hutchinson Technology Inc.1	67,062		1,881,760
Flagstar Bancorp Inc.	73,318		1,880,607
Choice Hotels International Inc.	41,915		1,875,277
MicroStrategy Inc. Class A1	35,133		1,872,589
Adolor Corp.1	124,057		1,864,577
Arrow International Inc.	62,092		1,855,930
Joy Global Inc.	65,759		1,845,855
Transmeta Corp.1	466,031		1,845,483
Inter-Tel Inc.	61,221		1,840,303
Bright Horizons Family Solutions Inc.1	38,974		1,838,014
Secure Computing Corp.1	111,927		1,830,006
Priceline.com Inc.1	67,839		1,828,939
Veeco Instruments Inc.1	65,184		1,828,411
Invacare Corp.	39,985		1,804,923
Multimedia Games Inc.1	72,925		1,804,165
MGE Energy Inc.	58,470		1,803,800
Pinnacle Systems Inc.1	199,472		1,801,232
Atrix Laboratories Inc.1	70,627		1,800,988
American Medical Systems Holdings Inc.1	67,782		1,796,223
Georgia Gulf Corp.	59,526		1,794,709
CoStar Group Inc.1	48,572		1,791,821
Labor Ready Inc.1	131,731		1,781,003
Mercury Computer Systems Inc.1	69,598		1,774,749
Anteon International Corp.1	61,305		1,771,101
K-Swiss Inc. Class A	72,293		1,769,010
Beverly Enterprises Inc.1	275,949		1,766,074
Centene Corp.1	57,511		1,759,261
FEI Co.1	80,428		1,757,352
Keane Inc.1	111,540		1,755,640
Benchmark Electronics Inc.1	55,695		1,753,279
Guitar Center Inc.1	46,602		1,730,798
Encysive Pharmaceuticals Inc.1	168,159		1,728,675
MKS Instruments Inc.1	71,981		1,728,264
EGL Inc.1	95,711		1,718,970
Tetra Technologies Inc.1	65,679		1,716,192
Photon Dynamics Inc.1	52,592		1,716,077
Federal Signal Corp.	86,402		1,715,080
BARRA Inc.	48,975		1,713,635
TIBCO Software Inc.1	209,385		1,710,675
Salix Pharmaceuticals Ltd.1	58,708		1,703,706
Wind River Systems Inc.1	152,960		1,693,267
Aspect Communications Corp.1	107,989		1,692,188
Enterasys Networks Inc.1	668,699		1,691,808
Genta Inc.1	160,995		1,690,447
PolyMedica Corp.	63,028		1,690,411
ScanSource Inc.1	35,172		1,686,146
Quicksilver Resources Inc.1	43,140		1,672,106
Epicor Software Corp.1	125,016		1,658,962

76 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 2000 GROWTH INDEX FUND

March 31, 2004

Security	Shares	Value
Ventana Medical Systems Inc.1	40,480	$	1,658,061
ElkCorp	60,755		1,645,853
Hecla Mining Co.1	194,892		1,639,042
Actel Corp.1	72,306		1,636,285
WFS Financial Inc.	37,748		1,635,243
Gymboree Corp.1	97,266		1,631,151
Pacer International Inc.1	73,726		1,624,921
eSpeed, Inc.1	77,459		1,623,541
Global Imaging Systems Inc.1	48,744		1,619,276
Rollins Inc.	62,775		1,617,712
InterMune Inc.1	82,390		1,604,957
M/I Schottenstein Homes Inc.	33,892		1,602,414
Superior Energy Services Inc.1	158,196		1,594,616
Wright Medical Group Inc.1	51,829		1,591,150
Cray Inc.1	238,727		1,582,760
Essex Property Trust Inc.	24,116		1,579,598
Corvis Corp.1	821,753		1,577,766
Cyberonics Inc.1	65,771		1,575,873
Merit Medical Systems Inc.1	72,533		1,569,614
BioMarin Pharmaceutical Inc.1	208,668		1,569,183
Vignette Corp.1	757,547		1,568,122
Dendrite International Inc.1	97,768		1,564,288
Sinclair Broadcast Group Inc. Class A1	125,118		1,563,975
Movie Gallery Inc.	79,671		1,560,755
CharterMac	62,927		1,559,331
Tuesday Morning Corp.1	45,234		1,558,764
CV Therapeutics Inc.1	102,629		1,552,777
Intuitive Surgical Inc.1	91,085		1,548,445
Ultratech Inc.1	66,312		1,545,733
WMS Industries Inc.1	49,838		1,544,978
Activision Inc.1	97,539		1,543,067
Eclipsys Corp.1	114,404		1,542,166
Sapient Corp.1	255,572		1,541,099
CKE Restaurant Inc.1	155,473		1,539,183
American Home Mortgage Investment Corp.	53,413		1,538,294
Ferro Corp.	58,669		1,534,194
Genesis Microchip Inc.1	91,528		1,534,009
Magma Design Automation Inc.1	73,280		1,532,285
Regeneron Pharmaceuticals Inc.1	112,718		1,530,710
SERENA Software Inc.1	75,208		1,530,483
Mykrolis Corp.1	107,055		1,526,604
Mindspeed Technologies Inc.1	233,474		1,524,585
Extreme Networks Inc.1	211,122		1,522,190
Wolverine World Wide Inc.	63,031		1,520,938
Digene Corp.1	43,869		1,507,339
FuelCell Energy Inc.1	110,933		1,504,251
Wausau-Mosinee Paper Corp.	106,713		1,503,586
Oriental Financial Group Inc.	47,103		1,500,231
Discovery Laboratories Inc.1	122,705		1,495,774
Crompton Corp.	234,163		1,493,960
CIMA Labs Inc.1	47,318		1,487,205
ScanSoft Inc.1	265,456		1,483,899
Wabtec Corp.	104,068		1,481,928
Golden Telecom Inc.	43,424		1,477,719
Kyphon Inc.1	61,592		1,472,665
Independent Bank Corp. (Michigan)	52,837		1,472,039
Lone Star Technologies Inc.1	82,903		1,464,896
Exar Corp.1	78,778		1,457,393
Rayovac Corp.1	50,938		1,456,827
Plexus Corp.1	81,871		1,456,485
Axcelis Technologies Inc.1	130,738		1,453,807
PalmOne Inc.1	68,061		1,453,783
Myriad Genetics Inc.1	89,309		1,448,592
C-COR.net Corp.1	103,290		1,448,126
Possis Medical Inc.1	51,417		1,446,360
autobytel.com Inc.1	109,360		1,443,552
Investment Technology Group Inc.1	94,345		1,443,479
Selective Insurance Group Inc.	41,070		1,440,325
Noven Pharmaceuticals Inc.1	67,026		1,439,048
SuperGen Inc.1	112,359		1,438,195
ARIAD Pharmaceuticals Inc.1	150,770		1,426,284
webMethods Inc.1	151,106		1,420,396
Advent Software Inc.1	75,949		1,420,246
Coherent Inc.1	53,849		1,415,690
Cabot Oil & Gas Corp.	46,238		1,413,033
Micromuse Inc.1	180,068		1,404,530
Sycamore Networks Inc.1	344,215		1,404,397
Perrigo Co.	69,654		1,396,563
Exelixis Inc.1	162,346		1,388,058

SCHEDULES OF INVESTMENTS 77

Schedule of Investments (Continued)

iSHARES^® RUSSELL 2000 GROWTH INDEX FUND

March 31, 2004

Security	Shares	Value
Identix Inc.1	239,717	$	1,385,325
Sohu.com Inc.1	55,629		1,384,606
Serologicals Corp.1	67,738		1,381,855
United Therapeutics Inc.1	57,604		1,372,703
Viasat Inc.1	55,164		1,372,480
Hibbet Sporting Goods Inc.1	35,953		1,371,247
Frontier Oil Corp.	70,614		1,368,499
Glimcher Realty Trust	50,348		1,364,431
Umpqua Holdings Corp.	67,547		1,363,774
Remington Oil & Gas Corp.1	68,975		1,362,256
PTEK Holdings Inc.1	147,841		1,358,659
ArthroCare Corp.1	58,613		1,354,546
Retek Inc.1	177,967		1,345,431
Xicor Inc.1	87,740		1,335,403
Powerwave Technologies Inc.1	171,182		1,335,220
Mediacom Communications Corp.1	165,584		1,327,984
Kopin Corp.1	229,614		1,327,169
OraSure Technologies Inc.1	127,934		1,325,396
CSK Auto Corp.1	73,026		1,322,501
Agile Software Corp.1	150,788		1,319,395
Vector Group Ltd.	77,022		1,309,374
Korn/Ferry International1	81,778		1,308,448
Cell Therapeutics Inc.1	153,825		1,301,359
Stratex Networks Inc.1	272,719		1,295,415
Electronics Boutique Holdings Corp.1	43,981		1,291,282
Artisan Components Inc.1	57,561		1,283,035
Steel Dynamics Inc.1	50,847		1,259,989
StarTek Inc.	34,657		1,259,435
Itron Inc.1	67,365		1,253,663
Asyst Technologies Inc.1	151,704		1,248,524
Harbor Florida Bancshares Inc.	43,106		1,247,488
ChipPAC Inc. Class A1	157,694		1,247,360
WD-40 Co.	35,630		1,247,050
Enzo Biochem Inc.1	73,977		1,245,033
Suffolk Bancorp	36,343		1,244,748
aQuantive, Inc.1	129,635		1,244,496
j2 Global Communications Inc.1	55,068		1,242,334
Old Dominion Freight Line Inc.1	36,859		1,242,148
Cleveland-Cliffs Inc.1	18,927		1,238,394
Penn Virginia Corp.	20,434		1,238,300
ExpressJet Holdings Inc.1	99,513		1,237,942
Orbital Sciences Corp.1	98,526		1,234,531
BioLase Technology Inc.1	70,368		1,232,144
Photronics Inc.1	69,160		1,226,898
Newpark Resources Inc.1	235,247		1,223,284
SureWest Communications	45,462		1,217,927
Oakley Inc.	81,934		1,215,901
Geron Corp.1	128,696		1,209,742
Plains Resource Inc.1	66,387		1,206,916
Kaydon Corp.	43,773		1,205,071
Mattson Technology Inc.1	100,550		1,202,578
SeaChange International Inc.1	78,451		1,200,300
S&T Bancorp Inc.	39,793		1,196,178
Opsware Inc.1	158,037		1,194,760
Inspire Pharmaceuticals Inc.1	92,745		1,194,556
Hydril1	45,590		1,194,458
Credence Systems Corp.1	100,387		1,192,598
Pre-Paid Legal Services Inc.1	48,702		1,192,225
Tyler Technologies Inc.1	122,581		1,190,262
Ameristar Casinos Inc.1	35,240		1,189,315
Wireless Facilities Inc.1	107,688		1,185,645
Forward Air Corp.1	36,034		1,184,438
Harris Interactive Inc.1	140,304		1,182,763
St. Mary Land & Exploration Co.	35,295		1,179,912
Dot Hill Systems Corp.1	117,406		1,176,408
Tanox Inc.1	78,826		1,173,719
Advisory Board Co. (The)1	31,956		1,167,992
Children’s Place Retail Stores Inc. (The)1	37,709		1,167,848
Jill (J.) Group Inc. (The)1	56,859		1,166,747
Sterling Bancshares Inc.	87,125		1,166,604
CTI Molecular Imaging Inc.1	79,915		1,165,960
Hooper Holmes Inc.	186,719		1,165,127
Gevity HR Inc.	39,846		1,163,503
Superior Industries International Inc.	32,614		1,155,840
PrivateBancorp Inc.	22,375		1,154,103
At Road Inc.1	93,950		1,152,766
Aaron Rents Inc.	46,141		1,148,449
Immucor Inc.1	63,307		1,147,123
ESCO Technologies Inc.1	24,853		1,146,220

78 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 2000 GROWTH INDEX FUND

March 31, 2004

Security	Shares	Value
Isis Pharmaceuticals Inc.1	146,764	$	1,138,889
Coinstar Inc.1	71,737		1,138,466
Papa John’s International Inc.1	33,613		1,137,464
Old Second Bancorp Inc.	22,040		1,133,297
Advanced Energy Industries Inc.1	55,460		1,130,829
Administaff Inc.1	64,838		1,130,126
Zoll Medical Corp.1	28,113		1,123,958
AC Moore Arts & Crafts Inc.1	41,608		1,123,416
Epix Medical Inc.1	54,088		1,122,326
Microsemi Corp.1	80,856		1,106,110
Euronet Worldwide Inc.1	58,157		1,105,565
City Holding Co.	32,188		1,104,048
Main Street Banks Inc.	40,319		1,102,321
Linens ‘n Things Inc.1	31,115		1,101,782
Gentiva Health Services Inc.1	71,069		1,100,859
Biosite Inc.1	34,334		1,097,658
California Pizza Kitchen Inc.1	54,873		1,097,460
TiVo Inc.1	123,141		1,094,723
LabOne Inc.1	35,999		1,094,370
Westcorp Inc.	24,820		1,093,817
Presstek Inc.1	100,482		1,093,244
Spanish Broadcasting System Inc. Class A1	104,587		1,092,934
Alaris Medical Systems Inc.1	58,512		1,091,249
Speedway Motorsports Inc.	35,964		1,090,069
GrafTech International Ltd.1	72,866		1,089,347
Independent Bank Corp. (Massachusetts)	35,925		1,088,887
U.S.I. Holdings Corp.1	73,552		1,087,834
Alabama National Bancorp	19,587		1,087,470
Cepheid Inc.1	116,768		1,087,110
Portfolio Recovery Associates Inc.1	40,308		1,085,898
Transkaryotic Therapies Inc.1	63,219		1,084,838
SupportSoft Inc.1	97,335		1,071,658
Comtech Telecommunications Corp.1	46,152		1,070,726
Sports Authority Inc. (The)1	26,665		1,068,733
Able Laboratories Inc.1	54,722		1,068,721
Westell Technologies Inc. Class A1	146,292		1,067,932
United Stationers Inc.1	25,243		1,062,730
ICU Medical Inc.1	34,973		1,062,130
Silgan Holdings Inc.1	23,202		1,061,027
W-H Energy Services Inc.1	73,227		1,059,595
Daktronics Inc.1	46,870		1,057,856
Arch Coal Inc.	33,523		1,052,287
Kelly Services Inc. Class A	35,516		1,051,629
7-Eleven Inc.1	69,204		1,049,825
Manufactured Home Communities Inc.	29,703		1,048,516
Echelon Corp.1	93,005		1,048,166
Alexander’s Inc.1	6,515		1,042,400
Packeteer Inc.1	78,957		1,042,232
Keystone Automotive Industries Inc.1	37,991		1,039,434
SRA International Inc. Class A1	28,048		1,036,093
MatrixOne Inc.1	142,276		1,032,924
Mueller Industries Inc.	30,361		1,031,970
Casual Male Retail Group Inc.1	99,742		1,031,332
VistaCare Inc. Class A1	38,045		1,027,976
POZEN Inc.1	74,343		1,027,420
Chattem Inc.1	39,636		1,027,365
Sandy Spring Bancorp Inc.	28,305		1,026,905
Ceradyne Inc.1	28,358		1,025,142
infoUSA Inc.1	97,224		1,021,824
Omnicell Inc.1	51,562		1,021,443
Prima Energy Corp.1	29,497		1,019,121
World Acceptance Corp.1	51,784		1,010,306
Lionbridge Technologies Inc.1	103,732		1,009,312
Sharper Image Corp.1	30,955		1,008,514
FreeMarkets Inc.1	122,336		1,006,825
Bowne & Co. Inc.	58,851		1,006,352
SonoSite Inc.1	47,035		1,003,257
Laserscope1	50,512		999,127
North Pittsburgh Systems Inc.	49,559		997,623
MB Financial Inc.	25,564		996,740
Monolithic System Technology Inc.1	74,299		994,864
Per-Se Technologies Inc.1	88,664		993,037
X-Rite Inc.	66,650		992,419
Intrado Inc.1	51,287		992,403
Manugistics Group Inc.1	144,626		990,688

SCHEDULES OF INVESTMENTS 79

Schedule of Investments (Continued)

iSHARES^® RUSSELL 2000 GROWTH INDEX FUND

March 31, 2004

Security	Shares	Value
Cascade Bancorp	43,042	$	988,675
ON Semiconductor Corp.1	130,932		987,227
Cirrus Logic Inc.1	128,885		976,948
Big 5 Sporting Goods Corp.1	38,677		976,594
Franklin Electric Co. Inc.	15,295		973,986
Bradley Pharmaceuticals Inc.1	38,658		973,408
eCollege.com Inc.1	46,603		973,071
CIBER Inc.1	88,275		971,025
Frontier Financial Corp.	28,232		970,898
NeoPharm Inc.1	51,431		964,846
Applied Films Corporation1	34,365		958,783
Peregrine Pharmaceuticals Inc.1	391,020		957,999
Corixa Corp.1	148,756		952,455
Excel Technology Inc.1	30,218		950,356
Synaptics Inc.1	53,923		945,809
Sonic Solutions Inc.1	49,835		944,872
Verity Inc.1	68,956		942,629
Royal Gold Inc.	52,578		931,156
Altiris Inc.1	33,191		927,357
Zenith National Insurance Corp.	23,601		925,159
Holly Corp.	28,868		919,734
National Penn Bancshares Inc.	29,134		918,595
World Fuel Services Corp.	24,962		916,854
SurModics Inc.1	45,949		914,845
Palm Harbor Homes Inc.1	42,990		901,070
SpectraLink Corp.	52,894		900,785
Overstock.com Inc.1	29,138		899,781
ManTech International Corp. Class A1	43,725		895,925
West Bancorporation	53,001		895,717
Aspen Technology Inc.1	109,216		892,295
Wild Oats Markets Inc.1	74,991		887,144
SS&C Technologies Inc.	36,519		886,316
FindWhat.com1	40,934		886,221
Bank of the Ozarks Inc.	32,040		882,702
Hanover Compressor Co.1	72,953		882,002
Komag Inc.1	47,878		880,955
II-VI Inc.1	35,985		879,833
AnnTaylor Stores Corp.1	20,507		877,700
Avanex Corp.1	202,866		876,381
O’Charley’s Inc.1	47,969		875,434
Getty Realty Corp.	32,902		874,206
Regeneration Technologies Inc.1	76,977		873,689
Bombay Co. Inc. (The)1	110,614		868,320
CTS Corp.	66,371		865,478
Red Robin Gourmet Burgers1	30,385		862,934
Nara Bancorp Inc.	29,079		861,320
New Jersey Resources Corp.	22,776		860,933
Republic Bancorp Inc.	61,036		858,166
ValueVision Media Inc. Class A1	55,825		856,914
Accredited Home Lenders Holding Co.1	21,737		856,438
West Marine Inc.1	26,882		856,192
Joseph A. Bank Clothiers Inc.1	23,696		853,056
Applied Signal Technology Inc.	30,945		845,417
Tejon Ranch Co.1	22,873		845,386
Charles River Associates Inc.1	25,767		844,797
Orthologic Corp.1	108,903		843,998
Concur Technologies Inc.1	75,350		843,920
Trex Co. Inc.1	24,723		843,302
Pegasus Solutions Inc.1	72,116		842,315
TALX Corp.	38,347		841,717
Nuvelo Inc.1	66,661		837,262
Saga Communications Inc.1	44,841		836,285
FalconStor Software Inc.1	112,343		831,113
Lindsay Manufacturing Co.	34,495		830,640
Coldwater Creek Inc.1	38,942		830,243
Intermagnetics General Corp.1	31,093		823,965
Sanderson Farms Inc.	22,413		823,230
Interpore International1	57,221		822,838
Arrow Financial Corp.	27,544		822,464
Ixia1	75,931		821,573
Bei Technologies Inc.	36,399		817,522
Landauer Inc.	19,351		812,742
Haemonetics Corp.1	25,730		809,209
American Woodmark Corp.	12,123		805,695
Tanger Factory Outlet Centers Inc.	17,679		801,212
Oil States International Inc.1	59,554		800,406
Concord Communications Inc.1	55,451		799,049
BioVeris Corp.1	67,250		796,912
Rewards Network Inc.1	79,490		794,900

80 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 2000 GROWTH INDEX FUND

March 31, 2004

Security	Shares	Value
SciClone Pharmaceuticals Inc.1	147,195	$	794,853
Sterling Bancorp (New York)	27,251		794,367
Forrester Research Inc.1	41,894		793,891
Nautilus Group Inc. (The)	50,393		793,690
Argosy Gaming Co.1	22,287		792,303
Molecular Devices Corp.1	42,049		792,203
TriZetto Group Inc. (The)1	102,194		792,004
Salem Communications Corp. Class A1	28,713		786,162
Penwest Pharmaceuticals Co.1	53,664		784,031
CorVel Corp.1	21,461		776,888
Antigenics Inc.1	72,754		775,558
Comstock Resources Inc.1	38,926		773,460
Conceptus Inc.1	64,882		773,393
Isle of Capri Casinos Inc.1	30,745		772,929
Allscripts Healthcare Solutions Inc.1	79,552		771,654
Standard Microsystems Corp. 1	28,959		771,468
Keithley Instruments Inc.	37,250		771,448
Peet’s Coffee & Tea Inc.1	36,217		771,422
Quantum Corp.1	208,178		770,259
Netegrity Inc.1	90,444		768,774
Seattle Genetics Inc.1	90,769		767,906
Cubist Pharmaceuticals Inc.1	83,386		767,151
Universal Display Corp.1	59,453		762,782
Hancock Fabrics Inc.	47,671		757,492
Commercial Capital Bancorp Inc.1	32,968		755,627
Peapack-Gladstone Financial Corp.	22,298		755,010
VIVUS Inc.1	124,352		754,817
MBT Financial Corp.	43,795		753,274
MTR Gaming Group Inc.1	75,292		752,920
KCS Energy Inc.1	70,236		751,525
Indevus Pharmaceuticals Inc.1	124,047		750,484
Finisar Corp.1	343,995		749,909
General Cable Corp.1	101,374		748,140
Integrated Electrical Services Inc.1	66,296		745,167
Midwest Banc Holdings Inc.	31,474		743,731
Aceto Corp.	47,297		743,036
Cardiac Science Inc.1	169,878		742,367
SPSS Inc.1	40,384		739,027
Symmetricom Inc.1	82,169		737,056
Candela Corp.1	53,670		735,816
Zymogenetics Inc.1	47,462		733,288
Palatin Technologies Inc.1	175,295		730,980
TALK America Holdings Inc.1	86,091		729,191
Sturm Ruger & Co. Inc.	53,627		724,501
KFx Inc.1	69,469		721,783
SY Bancorp Inc.	32,160		720,384
Mesa Air Group Inc.1	87,158		719,925
PennRock Financial Services Corp.	25,168		719,805
Proxim Corp. Class A1	404,770		716,443
Drew Industries Inc.1	20,417		716,228
Electronics For Imaging Inc.1	29,068		714,201
Plug Power Inc.1	92,501		714,108
REMEC Inc.1	93,957		714,073
Audiovox Corp. Class A1	35,605		712,100
Central Pacific Financial Corp.	23,901		712,011
Central European Distribution Corp.1	21,935		709,378
Concurrent Computer Corp.1	205,046		707,409
Citizens Inc.1	94,564		704,502
Plains Exploration & Production Co.1	37,758		703,809
PSS World Medical Inc.1	62,788		702,598
SFBC International Inc.1	23,562		701,205
Cubic Corp.	26,953		700,778
Provident Bancorp Inc.	59,128		700,667
Genesee & Wyoming Inc. Class A1	28,332		699,800
Cable Design Technologies Corp.1	73,723		698,894
Kosan Biosciences Inc.1	66,065		698,307
CardioDynamics International Corp.1	110,065		695,611
Encore Wire Corp.1	18,658		695,010
First Horizon Pharmaceutical Corp.1	43,781		689,989
EPIQ Systems Inc.1	42,077		689,221
Consolidated-Tomoka Land Co.	18,505		686,906
Exult Inc.1	110,238		686,783

SCHEDULES OF INVESTMENTS 81

Schedule of Investments (Continued)

iSHARES^® RUSSELL 2000 GROWTH INDEX FUND

March 31, 2004

Security	Shares	Value
Vicor Corp.1	55,659	$	682,936
USANA Health Sciences Inc.1	29,191		681,026
Federal Agricultural Mortgage Corp.1	25,850		677,528
Arris Group Inc.1	73,483		676,044
Rudolph Technologies Inc.1	36,079		675,760
21st Century Insurance Group	46,903		675,403
Alexandria Real Estate Equities Inc.	10,703		674,289
Prosperity Bancshares Inc.	28,524		672,025
PC-Tel Inc.1	64,842		669,818
TriPath Imaging Inc.1	72,999		668,671
Trimeris Inc.1	45,283		667,924
Raven Industries Inc.	21,798		667,019
Renaissance Learning Inc.	25,298		666,602
American West Holdings Corp. Class B1	69,931		666,442
Veritas DGC Inc.1	32,071		663,870
Planar Systems Inc.1	46,640		663,687
A.S.V. Inc.1	21,811		663,054
Impac Mortgage Holdings Inc.	24,174		657,533
Progenics Pharmaceuticals Inc.1	34,389		653,391
Tollgrade Communications Inc.1	40,762		650,562
Gladstone Capital Corp.	28,918		650,366
SeeBeyond Technology Corp.1	159,097		644,343
Aksys Ltd.1	99,245		644,100
MRO Software Inc.1	55,379		643,504
United Industrial Corp.	33,944		642,899
Sound Federal Bancorp Inc.	43,705		642,464
Portal Software Inc.1	95,189		641,574
American Medical Security Group Inc.1	23,993		640,853
GameStop Corp.1	35,539		640,413
Kenneth Cole Productions Class A	18,683		637,090
Nu Skin Enterprises Inc. Class A	31,495		634,624
Verint Systems Inc.1	20,446		631,781
PAREXEL International Corp.1	35,294		630,704
Luminex Corp.1	69,369		627,789
Ciphergen Biosystems Inc.1	75,349		627,657
Darling International Inc.1	184,476		627,218
Heidrick & Struggles International Inc.1	26,188		626,679
Kensey Nash Corp.1	25,355		625,001
Steak n Shake Company (The)1	32,466		624,971
Boston Communications Group Inc.1	52,736		624,922
Quidel Corp.1	94,682		623,954
Mercantile Bank Corp.	17,541		622,706
Drugstore.com Inc.1	115,717		622,557
Philadelphia Consolidated Holding Corp.1	10,720		621,760
Virginia Financial Group Inc.	17,891		621,712
Avant Immunotherapeutics Inc.1	246,671		621,611
Dendreon Corp.1	46,685		620,910
Bone Care International Inc.1	30,917		618,340
Libbey Inc.	23,775		616,486
Otter Tail Corp.	23,309		615,824
Blue Rhino Corp.1	36,080		611,195
Yellow Roadway Corp.1	18,145		610,942
Integral Systems Inc.	32,100		609,900
PDF Solutions Inc.1	52,958		609,547
Closure Medical Corp.1	22,097		607,667
Ryerson Tull Inc.	46,398		607,350
DOV Pharmaceutical Inc.1	39,122		607,173
Inverness Medical Innovations Inc.1	33,122		606,133
Entrust Inc.1	136,792		597,781
Lifeline Systems Inc.1	31,552		596,017
KVH Industries Inc.1	41,298		595,104
1-800-FLOWERS.COM Inc.1	62,071		594,019
GulfMark Offshore Inc.1	37,519		589,423
HealthExtras Inc.1	51,106		586,697
Western Sierra Bancorp1	13,346		586,557
Embarcadero Technologies Inc.1	45,679		586,518
Shore Bancshares Inc.	17,952		585,235
Source Interlink Companies Inc.1	46,797		584,963
Bentley Pharmaceuticals Inc.1	48,648		584,262
CuraGen Corp.1	93,555		583,783
Kirkland’s Inc.1	35,548		580,499
Gibraltar Steel Corp.	23,602		580,137
Syntel Inc.	20,957		577,156

82 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 2000 GROWTH INDEX FUND

March 31, 2004

Security	Shares	Value
MAPICS Inc.1	71,303	$	576,128
Gabelli Asset Management Inc. Class A	14,216		572,620
Armor Holdings Inc.1	17,206		569,519
Diversa Corp.1	64,264		569,379
Digitas Inc.1	55,249		568,512
CompuCredit Corp.1	26,847		567,546
MTC Technologies Inc.1	22,592		567,285
Warnaco Group Inc. (The)1	28,206		566,659
Playboy Enterprises Inc. Class B1	40,366		565,931
Fremont General Corp.	18,470		565,182
Intellisync Corp.1	171,491		564,205
Immunomedics Inc.1	139,212		563,809
Universal Electronics Inc.1	42,705		563,706
WatchGuard Technologies Inc.1	71,983		562,907
United Security Bancshares Inc.	21,274		562,697
Overland Storage Inc.1	33,189		562,554
National Healthcare Corp.1	21,490		558,740
Interwoven Inc1	55,931		557,632
Nelson (Thomas) Inc.	20,461		556,948
Courier Corp.	12,424		555,974
Energy Conversion Devices Inc.1	56,150		550,270
Staar Surgical Co.1	61,149		548,507
Net.B@nk Inc.	44,782		546,788
Macatawa Bank Corp.	19,544		544,691
Sun Communities Inc.	12,714		544,413
Tennant Co.	13,712		543,955
Columbia Laboratories Inc.1	109,668		542,857
CoBiz Inc.	26,501		541,415
La Jolla Pharmaceutical Co.1	195,918		540,734
Mobile Mini Inc.1	31,146		538,826
OPNET Technologies Inc.1	36,075		537,878
First Bancorp (North Carolina)	17,079		537,818
Pain Therapeutics Inc.1	77,231		536,755
Neoware Systems Inc.1	52,105		535,118
Hexcel Corp.1	73,100		532,168
Glacier Bancorp Inc.	16,459		530,803
Inet Technologies Inc.1	42,740		530,403
Computer Network Technology Corp.1	66,259		530,072
GSI Commerce Inc.1	52,136		529,180
TTM Technologies Inc.1	42,811		527,432
Capitol Bancorp Ltd.	19,459		527,339
Oplink Communications Inc.1	209,760		526,498
Lithia Motors Inc. Class A	19,040		526,456
Group 1 Automotive Inc.1	14,528		525,914
CNB Financial Corp.	12,058		524,402
Stratasys Inc.1	27,532		523,934
Medical Action Industries Inc.1	25,627		523,816
Del Laboratories Inc.1	15,767		523,464
German American Bancorp	30,668		522,889
Party City Corp.1	35,077		522,297
BroadVision Inc.1	84,677		519,070
Bebe Stores Inc.1	15,429		517,489
Medis Technologies Ltd.1	39,045		517,346
TRC Companies Inc.1	27,625		516,864
Charter Financial Corp.	13,090		515,353
Information Holdings Inc.1	24,966		514,799
Verso Technologies Inc.1	307,272		513,144
U.S. Physical Therapy Inc.1	37,083		511,745
CPI Corp.	26,744		508,938
CCC Information Services Group Inc.1	28,620		508,577
LookSmart Ltd.1	257,165		506,615
First Busey Corp. Class A	18,657		505,791
Anaren Inc.1	31,918		503,666
Exact Sciences Corp.1	64,802		503,512
Triarc Companies Inc. Class B	45,852		502,538
Cole National Corp.1	22,721		501,452
deCODE genetics Inc.1	47,223		500,564
Quality Systems Inc.1	11,007		500,048
Penns Woods Bancorp Inc.	11,047		497,999
Duane Reade Inc.1	29,381		497,714
Ocular Sciences Inc.1	17,006		495,725
Regent Communications Inc.1	75,759		493,191
DJ Orthopedics Inc.1	19,047		492,365
DHB Industries Inc.1	66,627		491,041
Supertex Inc.1	29,249		487,873
White Electronic Designs Corp.1	63,741		487,619
Young Broadcasting Inc. Class A1	26,830		485,623
Group 1 Software Inc.1	29,642		482,572
Strattec Security Corp.1	7,615		482,182

SCHEDULES OF INVESTMENTS 83

Schedule of Investments (Continued)

iSHARES^® RUSSELL 2000 GROWTH INDEX FUND

March 31, 2004

Security	Shares	Value
Quixote Corp.	22,788	$	479,232
Learning Tree International Inc.1	30,090		478,130
Cherokee Inc.	20,365		477,743
IXYS Corp.1	50,771		477,247
Cross Country Healthcare Inc.1	28,631		476,706
QAD Inc.1	35,887		476,220
Siliconix Inc.1	10,199		475,579
Summit America Television Inc.1	117,539		474,858
Synovis Life Technologies Inc.1	33,145		473,642
Gulf Island Fabrication Inc.	23,236		472,620
Young Innovations Inc.	13,449		471,925
Centillium Communications Inc.1	104,321		471,531
Greene County Bancshares Inc.	21,002		471,075
Virginia Commerce Bancorp Inc.1	15,746		470,805
McGrath Rentcorp	15,439		470,735
VitalWorks Inc.1	125,179		469,421
E-LOAN Inc.1	150,118		466,867
Chicago Pizza & Brewery Inc.1	35,662		466,102
Fisher Communications Inc.1	9,554		465,757
Kadant Inc.1	22,328		465,539
MIM Corp.1	60,883		463,137
NIC Inc.1	76,675		463,117
MTS Systems Corp.	16,728		462,864
Warwick Valley Telephone Co.	18,108		462,659
Insight Enterprises Inc.1	24,009		462,173
IMPAC Medical Systems Inc.1	20,506		461,385
Hickory Tech Corp.	36,972		459,562
GB&T Bancshares Inc.	16,303		458,929
Aspect Medical Systems Inc.1	30,563		455,389
Princeton Review Inc. (The)1	52,637		454,784
Playtex Products Inc.1	65,781		454,547
Charlotte Russe Holding Inc.1	24,816		454,133
Coastal Financial Corp.	27,563		447,902
Diodes Inc.1	20,461		446,254
Drexler Technology Corp.1	32,513		445,428
THQ Inc.1	22,014		445,343
SM&A1	40,064		441,105
AsiaInfo Holdings Inc.1	67,391		439,389
Option Care Inc.1	38,423		437,638
Fargo Electronics1	38,624		436,451
Digimarc Corp.1	35,236		435,869
Quaker Chemical Corp.	17,063		433,400
Keynote Systems Inc.1	33,627		432,779
Yadkin Valley Bank & Trust Co.	25,817		432,435
Lightbridge Inc.1	72,983		430,600
Quaker City Bancorp Inc.	7,898		429,651
Aphton Corp.1	91,397		429,566
Resource Bankshares Corp.	13,166		429,212
WESCO International Inc.1	28,633		426,632
LodgeNet Entertainment Corp.1	22,391		425,429
Ambassadors Group Inc.	17,174		424,713
Aaon Inc.1	21,426		424,021
Barnes Group Inc.	15,179		423,342
Sigma Designs Inc.1	58,927		422,507
RC2 Corp.1	15,244		419,210
Superconductor Technologies Inc.1	181,853		418,262
Coca-Cola Bottling Co. Consolidated	8,183		417,742
CollaGenex Pharmaceuticals Inc.1	31,244		416,170
Anixter International Inc.	14,723		415,925
Manitowoc Co. Inc. (The)	14,036		415,185
Lakeland Bancorp Inc.	25,194		414,693
IBT Bancorp Inc.	8,624		414,383
Innovex Inc.1	60,671		411,956
Kana Software Inc.1	91,283		411,686
Connecticut Bankshares Inc.	7,899		410,432
iPayment Holdings Inc.1	12,299		409,065
OshKosh B’Gosh Inc. Class A	17,457		408,494
Stoneridge Inc.1	28,244		407,278
Datastream Systems Inc.1	56,874		407,218
Cantel Medical Corp.1	22,456		401,738
Duratek Inc.1	25,163		400,343
Capital City Bank Group Inc.	9,686		399,547
Metrologic Instruments Inc.1	17,039		398,713
Triton PCS Holdings Inc. Class A1	72,611		398,634
Great Southern Bancorp Inc.	8,103		398,100
York International Corp.	10,094		396,795
Marine Products Corp.	28,257		395,315
First South Bancorp Inc.	10,182		395,062
Cholestech Corp.1	44,889		395,023
Standard Commercial Corp.	21,120		391,776
OSI Systems Inc.1	19,587		391,740

84 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 2000 GROWTH INDEX FUND

March 31, 2004

Security	Shares	Value
America’s Car-Mart Inc.1	14,449	$	389,401
Bankrate Inc.1	19,548		389,201
Computer Programs & Systems Inc.	20,478		389,082
Hudson Highland Group Inc.1	13,939		388,619
TradeStation Group Inc.1	57,256		385,333
E.piphany Inc.1	52,751		380,862
Westmoreland Coal Co.1	20,586		377,753
Genencor International Inc.1	28,315		376,873
CyberGuard Corp.1	38,001		374,310
PEC Solutions Inc.1	28,298		374,100
SBA Communications Corp.1	95,859		371,933
Network Equipment Technologies Inc.1	37,200		371,256
Gartner Inc. Class A1	31,631		368,501
First Financial Holdings Inc.	12,322		368,305
Ulticom Inc.1	35,873		368,057
Zhone Technologies Inc.1	94,573		367,889
Curative Health Services Inc.1	27,340		366,356
Third Wave Technologies Inc.1	79,074		364,531
Seacoast Banking Corp. of Florida	17,592		364,154
Covenant Transport Inc. Class A1	20,138		363,088
SkyWest Inc.	18,855		362,770
CryoLife Inc.1	60,963		362,730
Mothers Work Inc.1	13,574		361,747
Shenandoah Telecommunications Co.	15,802		361,076
Clayton Williams Energy Inc.1	10,374		359,978
Exactech Inc.1	19,538		359,499
Zale Corp.1	5,832		358,960
Newport Corp.1	21,413		358,025
Washington Trust Bancorp Inc.	13,520		356,928
RPC Inc.	32,022		356,725
Vitria Technology Inc.1	60,520		355,918
EDO Corp.	14,752		355,228
Heritage Financial Corp.	16,811		351,182
C&D Technologies Inc.	20,955		350,158
Net2Phone Inc.1	66,811		347,417
Tompkins Trustco Inc.	7,630		347,165
Raindance Communications Inc.1	121,644		346,685
FFLC Bancorp Inc.	12,788		344,125
New England Business Service Inc.	10,139		343,205
General Binding Corp.1	20,139		342,363
Franklin Financial Corp.	10,825		341,637
Connecticut Water Service Inc.	12,047		340,930
Weyco Group Inc.	9,312		340,912
PalmSource Inc.1	18,700		339,779
Radiant Systems Inc.1	55,526		333,839
Star Scientific Inc.1	80,731		333,419
Catapult Communications Corp.1	18,588		331,405
Maui Land & Pineapple Co. Inc.1	9,550		331,003
Hypercom Corp.1	41,576		330,113
Iomega Corp.	58,950		329,531
Durect Corp.1	96,548		328,263
Osteotech Inc.1	50,509		325,783
Briggs & Stratton Corp.	4,820		325,205
NetScout Systems Inc.1	42,208		324,580
Lannett Co. Inc.1	19,382		323,679
Park Electrochemical Corp.	12,776		323,233
Hi-Tech Pharmacal Co.1	16,526		323,083
Research Frontiers Inc.1	33,001		320,770
Bank Mutual Corp.	28,638		320,464
NYFIX Inc.1	61,902		319,414
Bryn Mawr Bank Corp.	13,944		319,318
Concord Camera Corp.1	50,816		319,124
DigitalThink Inc.1	134,631		319,075
LNB Bancorp Inc.	15,452		318,620
Columbia Bancorp	10,324		317,979
Hollis-Eden Pharmaceuticals1	32,787		316,395
Columbia Bancorp (Oregon)	19,186		314,650
First Financial Bankshares Inc.	7,840		314,149
JDA Software Group Inc.1	21,542		313,436
Reading International Inc. Class A1	45,640		312,634
Kirby Corp.1	9,239		312,186
Monro Muffler Brake Inc.1	12,475		311,750
1-800 CONTACTS INC.1	17,602		309,971
Nassda Corp.1	44,645		309,836
TeleTech Holdings Inc.1	49,367		309,037
P.A.M. Transportation Services Inc.1	17,852		308,840
CDI Corp.	9,564		308,726
Ansoft Corp.1	21,391		308,458

SCHEDULES OF INVESTMENTS 85

Schedule of Investments (Continued)

iSHARES^® RUSSELL 2000 GROWTH INDEX FUND

March 31, 2004

Security	Shares	Value
Vital Images Inc.1	30,557	$	306,792
Resource America Inc. Class A	16,548		306,138
aaiPharma Inc.1	46,174		306,134
California Water Service Group	10,819		306,070
United Mobile Homes Inc.	18,989		305,913
First Citizens Banc Corp.	11,496		305,909
Bay View Capital Corp.	136,277		303,898
Virage Logic Corp.1	32,659		302,030
Repligen Corp.1	99,936		300,807
First Community Bancshares Inc.	9,804		299,414
Boston Beer Co. Inc. Class A1	16,250		299,325
Sanchez Computer Associates Inc.1	45,744		299,166
Three-Five Systems Inc.1	45,594		298,641
Sensient Technologies Corp.	15,927		297,357
PDI Inc.1	11,609		293,592
Province Healthcare Co.1	18,451		293,371
APAC Customer Services Inc.1	98,923		291,823
Sonic Automotive Inc.	11,598		290,530
Martha Stewart Living Omnimedia Inc. Class A1	26,309		289,399
MedQuist Inc.1	18,353		288,876
Lincoln Electric Holding Inc.	10,254		288,650
SonicWALL Inc.1	32,233		287,518
Cavalry Bancorp Inc.	16,918		285,407
Register.com1	47,735		282,591
Vastera Inc.1	72,508		281,331
Valence Technology Inc.1	62,892		279,869
Tredegar Corp.	18,980		277,677
Savient Pharmaceuticals Inc.1	73,442		277,611
Heartland Financial USA Inc.	14,849		276,934
Community Banks Inc.	8,839		275,423
Northwest Bancorp Inc.	10,727		274,289
SAFLINK Corp.1	89,004		274,132
First Federal Financial of Kentucky	10,323		271,495
Arctic Cat Inc.	10,542		268,716
Men’s Wearhouse Inc. (The)1	10,051		267,055
RehabCare Group Inc.1	13,242		263,251
Centennial Communications Corp.1	38,862		262,707
MSC.Software Corp.1	29,761		262,194
Flag Financial Corp.	20,290		259,915
Paxson Communications Corp.1	66,531		259,471
Abgenix Inc.1	19,420		258,092
Sierra Bancorp	16,663		252,444
Middlesex Water Co.	12,180		252,126
State Bancorp Inc.	10,367		249,845
Aether Systems Inc.1	53,706		249,733
Capital Automotive	6,983		246,570
Great Atlantic & Pacific Tea Co.1	31,649		244,963
NASB Financial Inc.	6,143		244,369
Navigators Group Inc.1	8,430		242,615
ICT Group Inc.1	18,071		242,151
Pegasystems Inc.1	29,393		241,610
Interchange Financial Services Corp.	9,934		241,396
OceanFirst Financial Corp.	9,597		239,253
Beasley Broadcast Group Inc. Class A1	13,576		238,938
Value Line Inc.	4,482		236,336
Green Mountain Coffee Roasters Inc.1	11,677		235,408
Meridian Bioscience Inc.	23,045		234,852
Semitool Inc.1	18,364		233,957
Lydall Inc.1	22,902		233,600
AVI BioPharma Inc.1	76,873		232,925
Arena Pharmaceuticals Inc.1	35,579		231,263
Community Bank of Northern Virginia	13,561		231,215
Alteon Inc.1	128,039		230,470
MarketWatch.com Inc.1	16,523		230,331
CEVA Inc.1	24,474		230,200
NBT Bancorp Inc.	10,231		230,198
First State Bancorp	7,434		229,413
Old Point Financial Corp.	7,640		229,200
Medical Staffing Network Holdings Inc.1	29,031		228,474
Kronos Worldwide Inc.	7,493		226,960
Carmike Cinemas Inc.1	6,083		226,720
Mail-Well Inc.1	50,655		226,428
Enstar Group Inc.1	4,905		226,317

86 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 2000 GROWTH INDEX FUND

March 31, 2004

Security	Shares	Value
Bruker BioSciences Corp.1	44,792	$	224,408
Credit Acceptance Corp.1	11,566		219,638
Acme Communications Inc.1	27,577		218,961
United Security Bancshares	8,859		218,817
FMS Financial Corp.	12,490		218,575
Specialty Laboratories Inc.1	20,159		217,717
Pemstar Inc.1	59,457		217,018
Mobius Management Systems Inc.1	23,767		216,993
Southern Financial Bancorp Inc.	4,852		216,399
McMoRan Exploration Co.1	14,564		215,547
Analogic Corp.	4,736		215,441
Arden Group Inc. Class A	2,840		214,420
Midway Games Inc.1	29,286		213,202
C&F Financial Corp.	5,230		213,175
Atlantic Coast Airlines Holdings Inc.1	29,319		213,149
Neose Technologies Inc.1	22,641		212,825
Methode Electronics Inc.	16,480		212,592
ACLARA BioSciences Inc.1	53,488		209,673
School Specialty Inc.1	5,809		206,626
Ennis Business Forms Inc.	12,339		206,555
NL Industries Inc.	14,776		205,386
NBC Capital Corp.	7,887		205,062
Adaptec Inc.1	23,317		204,257
InteliData Technologies Corp.1	161,596		200,379
Skechers U.S.A. Inc. Class A1	15,276		200,268
Trans World Entertainment Corp.1	21,124		200,256
U.S. Restaurant Properties Inc.	10,684		200,218
Albemarle Corp.	6,738		195,402
Brookstone Inc.1	7,082		194,826
United PanAm Financial Corp.1	12,129		193,943
Gray Television Inc.	13,236		193,510
Stellent Inc.1	25,726		192,173
Clean Harbors Inc.1	25,777		191,008
TheStreet.com Inc.1	41,844		190,390
Maritrans Inc.	12,032		189,023
Synplicity Inc.1	26,180		188,496
Smith (A.O.) Corp.	6,483		187,683
Shoe Carnival Inc.1	12,105		187,506
Stewart & Stevenson Services Inc.	12,817		187,385
NN Inc.	16,056		187,374
Thomas & Betts Corp.	8,585		187,325
GTC Biotherapeutics Inc.1	84,865		186,703
MAXIMUS Inc.1	5,318		186,130
Center Financial Corp.	11,814		185,952
Spartech Corp.	7,449		185,480
Nash Finch Co.	7,830		185,414
Woodhead Industries Inc.	12,348		185,220
Center Bancorp Inc.	11,685		184,740
Pegasus Communications Corp.1	4,791		183,687
Novoste Corp.1	53,905		182,738
Neoforma Inc.1	16,668		181,181
Meritage Corp.1	2,440		181,170
Albany International Corp. Class A	6,731		180,997
ValueClick Inc.1	16,665		179,982
Commercial Bankshares Inc.	6,609		179,236
Standard Register Co. (The)	11,085		177,693
Dover Downs Gaming & Entertainment Inc.	16,574		177,508
Farmers Capital Bank Corp.	5,047		176,645
Hawthorne Financial Corp.1	4,006		176,224
S1 Corp.1	23,062		175,271
Alpharma Inc. Class A	8,888		174,294
Summit Bancshares Inc.	5,724		172,292
NetRatings Inc.1	15,460		170,833
Churchill Downs Inc.	4,366		169,313
Universal Health Realty Income Trust	5,000		168,500
Town & Country Trust (The)	6,132		166,790
Insituform Technologies Inc. Class A1	10,648		166,428
Inter Parfums Inc.	7,153		164,447
CT Communications Inc.	11,713		161,991
Technitrol Inc.1	8,610		161,868
American Management Systems Inc.1	8,412		161,510
Cerus Corp.1	48,309		160,869
NCI Building Systems Inc.1	6,830		160,232

SCHEDULES OF INVESTMENTS 87

Schedule of Investments (Continued)

iSHARES^® RUSSELL 2000 GROWTH INDEX FUND

March 31, 2004

Security	Shares	Value
Schawk Inc.	11,789	$	157,737
Sterling Financial Corp. (Pennsylvania)	6,114		157,191
Alfa Corp.	11,514		156,706
Convera Corp.1	44,141		156,701
Roto-Rooter Inc.	3,076		155,492
Advanced Marketing Services Inc.	15,663		155,064
AAR Corp.1	12,567		154,323
National Beverage Corp.	15,971		152,044
Standard Motor Products Inc.	9,633		151,045
Sun Bancorp Inc. (Pennsylvania)	7,693		150,014
USB Holding Co. Inc.	6,073		149,031
Micro Therapeutics Inc.1	35,297		148,247
Clark Inc.1	8,720		148,240
Saxon Capital Inc.1	5,202		147,789
Riviana Foods Inc.	5,297		147,786
Vans Inc.1	9,832		145,514
Newtek Business Services Inc.1	27,843		144,784
Security Bank Corp.	4,811		144,330
Chronimed Inc.1	18,564		144,242
Digital Generation Systems Inc.1	94,617		142,872
Berry Petroleum Co. Class A	5,220		142,402
Retractable Technologies Inc.1	22,471		141,118
Southwest Water Co.	10,202		139,461
IBERIABANK Corp.	2,353		138,474
Hain Celestial Group Inc.1	6,239		137,820
Emerson Radio Corp.1	35,685		136,317
IHOP Corp.	3,946		135,900
Cohu Inc.	7,278		135,735
Irwin Financial Corp.	5,030		135,709
Offshore Logistics Inc.1	5,875		135,419
SCS Transportation Inc.1	6,140		133,852
FNB Corp. (North Carolina)	6,260		133,401
Ultimate Electronics Inc.1	20,159		131,638
Rofin-Sinar Technologies Inc.1	4,379		130,713
HEICO Corp.	8,239		129,270
Liquidmetal Technologies1	40,289		128,522
Biopure Corp.1	81,304		128,460
Eastern Virginia Bankshares	5,510		126,895
Galyan’s Trading Co.1	12,516		125,911
United Capital Corp.	5,670		124,060
First Financial Bancorp	6,645		122,932
RAIT Investment Trust	4,145		122,485
Global Power Equipment Group Inc.1	14,528		122,326
Modine Manufacturing Co.	4,686		122,117
Nuance Communications Inc.1	18,624		121,987
Elizabeth Arden Inc.1	5,657		119,476
Brookfield Homes Corp.	3,392		119,025
United Auto Group Inc.	4,311		117,949
Financial Federal Corp.1	3,485		116,504
Whitehall Jewellers Inc.1	12,712		116,188
Oneida Financial Corp.	8,233		115,262
Genlyte Group Inc. (The)1	2,035		114,041
ESS Technology Inc.1	7,708		112,999
Optical Communication Products Inc.1	34,131		112,291
EMCOR Group Inc.1	2,952		108,338
Greater Community Bancorp	6,720		108,125
Artesyn Technologies Inc.1	11,333		107,890
Action Performance Companies Inc.	6,937		105,928
Gorman-Rupp Co. (The)	4,074		105,517
SBS Technologies Inc.1	6,787		104,927
Firstbank Corp.	3,935		104,671
Genesco Inc.1	4,434		102,780
Hungarian Telephone and Cable Corp.1	11,053		100,472
Dynacq Healthcare Inc.1	18,664		98,546
Fleetwood Enterprises Inc.1	7,970		97,872
Modtech Holdings Inc.1	13,014		96,434
Matria Healthcare Inc.1	3,799		96,191
ActivCard Corp.1	14,851		96,086
Herley Industries Inc.1	4,984		94,098
Casella Waste Systems Inc. Class A1	6,408		93,172
Bel Fuse Inc. Class B	2,821		92,360
SimpleTech Inc.1	19,197		91,186
First Sentinel Bancorp Inc.	4,266		90,226
Sykes Enterprises Inc.1	15,074		89,690
Schweitzer-Mauduit International Inc.	2,771		89,503

88 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 2000 GROWTH INDEX FUND

March 31, 2004

Security	Shares	Value
D&K Healthcare Resources Inc.	8,689	$	89,062
Immunogen Inc.1	12,820		86,150
Foothill Independent Bancorp	3,914		86,108
Sirna Therapeutics Inc.1	19,378		78,481
Maxygen Inc.1	8,260		78,387
4Kids Entertainment Inc.1	3,482		77,892
First of Long Island Corp.	1,539		77,289
Wayne Bancorp Inc.	3,145		73,593
First Albany Companies Inc.	5,036		69,698
Insurance Auto Auctions Inc.1	4,789		69,584
Farmer Brothers Co.	192		69,120
Atari Inc.1	20,258		69,080
PC Connection Inc.1	8,713		68,746
EMS Technologies Inc.1	3,454		66,697
World Wrestling Entertainment Inc.	4,451		64,317
Blount International Inc.1	6,399		63,990
American Realty Investors Inc.1	6,467		62,148
Intertan Inc.1	4,410		61,608
Stein Mart Inc.1	4,241		58,526
PRG-Schultz International Inc.1	13,008		57,235
LSI Industries Inc.	4,660		56,666
Northern States Financial Corp.	2,104		56,008
InterCept Inc.1	4,298		52,393
City Bank	1,513		52,093
Hanmi Financial Corp.	1,862		49,511
Steven Madden Ltd.1	2,470		49,301
Tweeter Home Entertainment Group Inc.1	5,193		49,022
Stanley Furniture Co. Inc.	1,229		47,722
Union Bankshares Corp.	1,477		47,663
Healthcare Services Group Inc.	2,794		45,961
Deb Shops Inc.	1,779		45,738
Independence Holding Co.	1,371		42,241
Mission West Properties Inc.	3,075		40,744
BancTrust Financial Group Inc.	2,319		40,582
Central Coast Bancorp1	2,178		40,010
NS Group Inc.1	3,046		39,598
Sypris Solutions Inc.	2,281		38,777
Sipex Corp.1	5,909		37,227
PAB Bankshares Inc.	2,929		37,198
Boyds Collection Ltd. (The)1	14,606		36,661
Technical Olympic USA Inc.1	1,085		34,720
RCN Corp.1	115,438		33,477
Exchange National Bancshares Inc.	1,003		31,795
National Processing Inc.1	1,569		29,811
Royal Bancshares of Pennsylvania Class A	1,029		26,239
Hooker Furniture Corp.	1,024		23,798
American National Bankshares Inc.	868		21,292
Oak Hill Financial Inc.	598		19,525
Sports Resorts International Inc.1	4,861		19,007
Rex Stores Corp.1	1,130		17,786
Crawford & Co. Class B	3,408		17,313
Orleans Homebuilders Inc.1	672		16,162
McLeodUSA Inc. Class A1	10,394		15,487
Horizon Offshore Inc.1	4,934		14,950
Raytech Corp.1	3,991		11,494
Wilsons The Leather Experts Inc.1	3,303		9,215
WilTel Communications Group Inc.2	61,543		—
TOTAL COMMON STOCKS (Cost: $1,295,471,946)			1,521,915,202
SHORT-TERM INVESTMENTS – 23.13%
MONEY MARKET FUNDS – 8.62%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares3,4	89,355,696		89,355,696
Barclays Global Investors Funds Prime Money Market Fund, Institutional Shares3,4	32,721,793		32,721,793
BlackRock Temp Cash Money Market Fund3	1,531,638		1,531,638
Short-Term Investment Co. – Liquid Assets Money Market Portfolio3	7,627,338		7,627,338
			131,236,465

SCHEDULES OF INVESTMENTS 89

Schedule of Investments (Continued)

iSHARES^® RUSSELL 2000 GROWTH INDEX FUND

March 31, 2004

Security	Principal		Value
FLOATING RATE NOTES – 4.74%
Beta Finance Inc.
1.05%, 05/20/043,5	$	1,487,354	$	1,487,324
1.05%, 09/15/043,5		2,974,708		2,974,573
1.06%, 10/12/043,5		1,487,354		1,487,276
1.14%, 08/23/043,5		1,487,354		1,487,855
CC USA Inc.
1.05%, 04/19/043,5		1,308,872		1,308,869
1.06%, 05/24/043,5		2,974,708		2,974,666
1.09%, 07/15/043,5		1,487,354		1,487,508
1.51%, 02/15/053,5		1,933,561		1,936,251
Dorada Finance Inc.
1.04%, 07/01/043		1,041,148		1,038,411
1.05%, 05/20/043,5		2,974,708		2,974,649
1.24%, 08/09/043		743,677		743,637
1.48%, 01/18/053,5		2,231,031		2,230,943
Five Finance Inc.
1.06%, 04/15/043,5		1,487,354		1,487,354
HBOS Treasury Services PLC
1.10%, 04/22/053		2,974,708		2,974,708
Holmes Financing PLC
1.05%, 04/15/043		297,471		297,471
K2 USA LLC
1.05%, 08/16/043,5		743,677		743,635
1.05%, 09/27/043,5		3,212,685		3,212,450
1.06%, 04/13/043		1,487,354		1,487,352
1.06%, 05/17/043		1,487,354		1,487,345
1.46%, 01/12/053,5		1,487,354		1,487,238
Links Finance LLC
1.05%, 06/28/043		1,487,354		1,487,283
1.06%, 05/04/043		1,487,354		1,487,348
1.06%, 07/20/043		1,189,883		1,189,812
Nationwide Building Society
1.09%, 07/23/043,5		2,231,031		2,231,031
1.11%, 12/28/043,5		2,974,708		2,974,708
Northern Rock PLC
1.11%, 01/13/053,5		2,825,973		2,825,973
Permanent Financing PLC
1.04%, 03/10/053		2,974,708		2,974,708
1.05%, 12/10/043		1,487,354		1,487,354
Sigma Finance Inc.
1.05%, 07/01/043		1,487,354		1,487,262
1.06%, 07/20/043		1,487,354		1,487,265
1.09%, 10/07/043		2,974,708		2,974,401
1.24%, 08/06/043		743,677		743,651
Tango Finance Corp.
1.05%, 01/18/053,5		1,308,872		1,308,766
1.06%, 07/15/043,5		892,413		892,328
1.07%, 02/25/053,5		1,665,837		1,665,536
1.10%, 07/06/043,5		892,413		892,389
WhistleJacket Capital LLC
1.05%, 09/15/043,5		1,487,354		1,487,219
1.32%, 02/04/053,5		743,677		743,552
White Pine Finance LLC
1.04%, 08/26/043,5		1,487,354		1,487,262
1.05%, 11/15/043,5		1,784,825		1,784,825
1.06%, 04/20/043,5		1,487,354		1,487,354
1.06%, 07/06/043,5		1,784,825		1,784,780
				72,194,322
COMMERCIAL PAPER – 4.38%
Alpine Securitization Corp.
1.03%, 04/14/043		1,398,113		1,397,593
1.03%, 04/20/043		1,487,354		1,486,546
1.03%, 04/23/043		1,755,078		1,753,973
1.03%, 04/26/043		1,487,354		1,486,290
Amsterdam Funding Corp.
1.03%, 05/05/043		1,204,757		1,203,585
Barton Capital Corp.
1.03%, 04/02/043		1,550,091		1,550,046
Blue Ridge Asset Funding Corp.
1.02%, 04/23/043		892,412		891,856
1.03%, 05/21/043		1,487,354		1,485,226
Corporate Asset Funding
1.05%, 05/21/043		1,546,848		1,544,603
Corporate Receivables Corp.
1.03%, 04/07/043		1,487,354		1,487,099
1.04%, 06/03/043		2,974,708		2,969,295

90 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 2000 GROWTH INDEX FUND

March 31, 2004

Security	Principal		Value
Delaware Funding Corp.
1.03%, 04/02/043	$	1,487,354	$	1,487,312
1.03%, 05/05/043		2,233,500		2,231,328
1.03%, 05/21/043		743,677		742,613
Edison Asset Securitization
1.07%, 09/21/043		1,487,353		1,479,706
Eureka Securitization Inc.
1.03%, 05/25/043		594,942		594,023
1.04%, 04/14/043		1,784,825		1,784,155
Falcon Asset Securitization
1.03%, 04/15/043		1,787,592		1,786,876
1.03%, 04/22/043		1,755,078		1,754,023
1.03%, 04/30/043		1,487,354		1,486,120
Galaxy Funding Inc.
1.05%, 05/17/043		1,487,354		1,485,368
Gemini Securitization Corp.
1.03%, 04/20/043		893,007		892,522
1.03%, 04/23/043		1,718,995		1,717,913
1.03%, 04/30/043		1,042,427		1,041,562
1.03%, 05/24/043		743,677		742,549
1.04%, 04/19/043		743,677		743,290
GIRO Funding US Corp.
1.05%, 05/19/043		743,677		742,636
Jupiter Securitization Corp.
1.03%, 04/16/043		2,974,708		2,973,432
1.03%, 04/19/043		4,015,856		4,013,788
1.03%, 04/28/043		1,784,825		1,783,446
1.03%, 04/30/043		2,533,708		2,531,606
Liberty Street Funding Corp.
1.04%, 04/08/043		1,042,219		1,042,008
1.05%, 04/05/043		1,204,757		1,204,616
Polonius Inc.
1.04%, 05/21/043		1,720,869		1,718,383
Preferred Receivables Funding Corp.
1.03%, 04/19/043		3,123,444		3,121,835
1.04%, 04/23/043		3,420,915		3,418,741
1.04%, 05/20/043		743,677		742,624
Receivables Capital Corp.
1.04%, 04/14/043		1,308,872		1,308,380
Scaldis Capital LLC
1.05%, 06/30/043		1,064,946		1,062,150
Thames Asset Global Securitization No. 1 Inc.
1.03%, 04/19/043		1,487,354		1,486,588
Thunder Bay Funding Inc.
1.03%, 04/19/043		946,106		945,619
1.04%, 04/29/043		1,339,809		1,338,725
				66,660,049
TIME DEPOSITS – 3.74%
Abbey National Treasury Services PLC
1.08%, 04/01/043		10,411,480		10,411,480
1.33%, 02/10/053		1,487,354		1,487,162
1.39%, 02/02/053		1,487,354		1,487,167
1.40%, 10/25/043		2,974,708		2,974,456
Bank of New York
1.39%, 11/01/043		2,974,708		2,974,534
Bank of Nova Scotia
1.24%, 10/07/043		2,231,031		2,230,916
1.42%, 10/29/043		2,231,031		2,231,128
Canadian Imperial Bank of Commerce
1.24%, 10/07/043		2,231,031		2,230,858
1.38%, 11/22/043		743,677		743,713
1.40%, 10/29/043		2,974,708		2,974,666
National City Bank (Cleveland, Ohio)
1.02%, 04/01/043		4,462,063		4,462,063
Toronto-Dominion Bank
1.04%, 06/22/043		743,677		743,677
1.22%, 03/23/053		5,205,740		5,204,850
1.34%, 02/10/053		1,189,883		1,189,729
1.41%, 11/01/043		2,231,031		2,230,901
UBS Finance (Delaware)
1.06%, 04/01/043		5,949,417		5,949,417
1.10%, 09/08/043		2,974,707		2,960,165
1.11%, 12/17/043		4,462,058		4,426,292
				56,913,174
REPURCHASE AGREEMENTS – 1.17%
Bank of America, NA
1.06%, 04/01/043		5,949,417		5,949,417
Goldman, Sachs & Co.
1.08%, 04/01/043		11,898,834		11,898,834
				17,848,251

SCHEDULES OF INVESTMENTS 91

Schedule of Investments (Continued)

iSHARES^® RUSSELL 2000 GROWTH INDEX FUND

March 31, 2004

Security	Principal		Value
U.S. GOVERNMENT AGENCY NOTES – 0.48%
Federal Home Loan Mortgage Corporation
1.15%, 05/12/043	$	2,231,031	$	2,228,109
1.28%, 08/19/043		1,189,883		1,183,960
Federal National Mortgage Association
1.28%, 08/20/043		3,867,119		3,847,734
				7,259,803
TOTAL SHORT TERM INSTRUMENTS (Cost: $352,112,064)				352,112,064
TOTAL INVESTMENTS IN SECURITIES – 123.10% (Cost: $1,647,584,010)				1,874,027,266
Other Assets, Less Liabilities – (23.10%)				(351,659,237	)
NET ASSETS – 100.00%			$	1,522,368,029

¹ Non-income earning securities.

² Security valued at fair value in accordance with procedures approved by the Board of Trustees. See Note 1.

³ All or a portion of this security represents investments of securities lending collateral.

⁴ Issuer is an affiliate of the Fund’s investment advisor. See Note 2.

⁵ Security exempt from registration under Rule 144A of the Securities Act of 1933.

These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

See notes to financial statements.

92 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® RUSSELL 2000 VALUE INDEX FUND

March 31, 2004

Security	Shares	Value
COMMON STOCKS – 99.90%
Louisiana-Pacific Corp.	373,382	$	9,633,256
Ventas Inc.	279,278		7,674,559
Standard-Pacific Corp.	120,785		7,247,100
Health Care REIT Inc.	175,765		7,136,059
Allmerica Financial Corp.1	189,825		6,558,454
BJ’s Wholesale Club Inc.1	247,343		6,294,879
Allegheny Energy Inc.1	451,899		6,195,535
South Financial Group Inc. (The)	207,310		6,134,303
Fremont General Corp.	197,349		6,038,879
AnnTaylor Stores Corp.1	137,064		5,866,339
Activision Inc.1	365,077		5,775,518
Terex Corp.1	156,042		5,768,873
SL Green Realty Corp.	120,026		5,725,240
Reckson Associates Realty Corp.	203,033		5,713,349
Andrew Corp.1	324,691		5,682,093
AmerUs Group Co.	139,478		5,627,937
Hughes Supply Inc.	106,787		5,595,639
First Industrial Realty Trust Inc.	140,076		5,533,002
Crown Holdings Inc.1	588,550		5,485,286
Greater Bay Bancorp	185,316		5,420,493
FMC Corp.1	125,626		5,379,305
Zale Corp.1	86,489		5,323,398
Copart Inc.1	242,553		5,270,677
Impac Mortgage Holdings Inc.	193,207		5,255,230
Nationwide Health Properties Inc.	233,685		5,204,165
Energen Corp.	124,693		5,143,586
Corn Products International Inc.	128,524		5,140,960
York International Corp.	130,637		5,135,340
Citizens Banking Corp.	154,422		5,038,790
Pep Boys-Manny, Moe & Jack Inc.	181,057		5,024,332
American Greetings Corp. Class A1	219,951		5,008,284
Westar Energy Inc.	238,806		5,005,374
Highwoods Properties Inc.	190,891		5,003,253
Beazer Homes USA Inc.	46,698		4,945,785
Extended Stay America Inc.	254,386		4,927,457
Kennametal Inc.	118,728		4,899,905
Tom Brown Inc.1	130,299		4,899,242
Alexander & Baldwin Inc.	147,728		4,886,842
Briggs & Stratton Corp.	72,017		4,858,994
CMS Energy Corp.1	541,154		4,843,328
Massey Energy Co.	219,350		4,841,055
Staten Island Bancorp Inc.	189,280		4,709,286
Home Properties Inc.	115,546		4,708,499
Cooper Tire & Rubber Co.	233,400		4,703,010
Prentiss Properties Trust	125,246		4,621,577
Goodyear Tire & Rubber Co. (The)1	538,053		4,594,973
Atmos Energy Corp.	178,104		4,554,119
Dycom Industries Inc.1	170,851		4,530,969
Phoenix Companies Inc.	335,955		4,505,157
Universal Corp.	88,631		4,504,227
Visteon Corp.	466,485		4,464,261
Callaway Golf Co.	234,780		4,456,124
Corrections Corp. of America1	124,927		4,447,401
KEMET Corp.1	307,674		4,412,045
Linens ‘n Things Inc.1	123,890		4,386,945
Charter Communications Inc. Class A1	925,110		4,357,268
La Quinta Corp.1	573,358		4,323,119
Cimarex Energy Co.1	148,148		4,281,477
Arbitron Inc.1	106,225		4,276,618
MAF Bancorp Inc.	96,870		4,209,970
Dillards Inc. Class A	219,603		4,207,593
PNM Resources Inc.	139,602		4,195,040
Yellow Roadway Corp.1	122,530		4,125,585
Gateway Inc.1	773,722		4,085,252
IDACORP Inc.	136,310		4,075,669
Bob Evans Farms Inc.	125,068		4,057,206
Commercial Federal Corp.	146,021		4,030,180
Arch Coal Inc.	128,300		4,027,337
Forest Oil Corp.1	159,072		4,016,568
Stone Energy Corp.1	80,675		3,990,186
Commerce Group Inc.	82,596		3,964,608
Ohio Casualty Corp.1	198,027		3,958,560
Chittenden Corp.	119,495		3,943,335
Abgenix Inc.1	292,711		3,890,129
Banta Corp.	84,012		3,888,915
Eagle Materials Inc.	65,868		3,876,332
Tesoro Petroleum Corp.1	206,137		3,873,314
First Niagara Financial Group Inc.	283,752		3,873,215
Potlatch Corp.	93,413		3,806,580
Southern Union Co.1	198,039		3,752,839
Gables Residential Trust	103,286		3,744,117

SCHEDULES OF INVESTMENTS 93

Schedule of Investments (Continued)

iSHARES^® RUSSELL 2000 VALUE INDEX FUND

March 31, 2004

Security	Shares	Value
MPS Group Inc.1	336,446	$	3,741,280
Delphi Financial Group Inc. Class A	87,541		3,678,473
Kellwood Co.	93,672		3,676,626
Black Hills Corp.	114,412		3,646,310
Newcastle Investment Corp.	108,140		3,644,318
Susquehanna Bancshares Inc.	141,576		3,628,593
SkyWest Inc.	185,336		3,565,865
Unova Inc.1	164,189		3,548,124
Alexandria Real Estate Equities Inc.	56,290		3,546,270
Minerals Technologies Inc.	61,996		3,539,972
Acuity Brands Inc.	148,144		3,537,679
Flowserve Corp.1	167,719		3,513,713
Allegheny Technologies Inc.	288,890		3,495,569
Trinity Industries Inc.	125,494		3,488,733
Brandywine Realty Trust	113,094		3,455,022
United Stationers Inc.1	81,742		3,441,338
Senior Housing Properties Trust	176,151		3,434,945
Post Properties Inc.	118,925		3,425,040
Silicon Valley Bancshares1	105,225		3,413,499
Payless ShoeSource Inc.1	242,540		3,385,858
Millennium Chemicals Inc.	226,539		3,384,493
United Rentals Inc.1	189,708		3,371,111
US Oncology Inc.1	227,985		3,369,618
Donnelley (R.H.) Corp.1	70,706		3,301,970
GATX Corp.	148,827		3,299,495
USF Corp.	96,397		3,298,705
GrafTech International Ltd.1	220,275		3,293,111
Brookline Bancorp Inc.	205,568		3,278,810
Knight Trading Group Inc.1	258,860		3,277,168
Washington Group International Inc.1	89,203		3,265,722
Kilroy Realty Corp.	91,961		3,264,615
Avista Corp.	172,005		3,254,335
Capital Automotive	91,104		3,216,882
Spinnaker Exploration Co.1	88,250		3,169,940
Seacoast Financial Services Corp.	94,495		3,165,583
Provident Financial Services Inc.	169,068		3,159,881
Moog Inc. Class A1	92,324		3,150,095
Ralcorp Holdings Inc.1	103,101		3,137,363
Adaptec Inc.1	357,306		3,130,001
Thomas & Betts Corp.	143,148		3,123,489
Commercial Net Lease Realty Inc.	157,760		3,115,760
First Commonwealth Financial Corp.	210,523		3,111,530
Sierra Pacific Resources1	417,930		3,092,682
Electronics For Imaging Inc.1	125,809		3,091,127
Aquila Inc.1	656,051		3,090,000
Albemarle Corp.	106,499		3,088,471
Great Lakes Chemical Corp.	129,212		3,081,706
OM Group Inc.1	101,166		3,075,446
CommScope Inc.1	184,040		3,064,266
Black Box Corp.	57,176		3,064,062
Joy Global Inc.	109,037		3,060,669
Kansas City Southern Industries Inc.1	219,946		3,057,249
CONMED Corp.1	103,263		3,050,389
Mueller Industries Inc.	89,486		3,041,629
Jack in the Box Inc.1	121,465		3,032,981
Chemical Financial Corp.	84,518		3,031,661
BankUnited Financial Corp. Class A1	101,706		3,020,668
Reliance Steel & Aluminum Co.	85,568		3,007,715
Cleco Corp.	157,654		3,000,156
LandAmerica Financial Group Inc.	66,140		2,993,496
Redwood Trust Inc.	48,061		2,987,952
UMB Financial Corp.	58,444		2,963,111
Actuant Corp. Class A1	75,423		2,958,844
Hancock Holding Co.	95,502		2,956,742
Flowers Foods Inc.	112,167		2,943,262
Continental Airlines Inc. Class B1	234,547		2,938,874
Entertainment Properties Trust	71,801		2,937,379
Lincoln Electric Holding Inc.	103,795		2,921,829
Waypoint Financial Corp.	108,907		2,920,886
Lennox International Inc.	156,391		2,901,053
Fuller (H.B.) Co.	101,258		2,879,778
Perrigo Co.	142,780		2,862,739
Northwest Natural Gas Co.	91,560		2,861,250
Commercial Metals Co.	89,601		2,852,896
Gartner Inc. Class A1	244,615		2,849,765
Jones Lang LaSalle Inc.1	110,671		2,845,351
Charming Shoppes Inc.1	363,579		2,832,280
Lexington Corp. Properties Trust	129,327		2,818,035
Men’s Wearhouse Inc. (The)1	105,257		2,796,678
FirstFed Financial Corp.1	60,560		2,793,633
Cincinnati Bell Inc.1	683,984		2,783,815
Granite Construction Inc.	116,784		2,775,956

94 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 2000 VALUE INDEX FUND

March 31, 2004

Security	Shares	Value
Curtiss-Wright Corp.	58,908	$	2,761,018
eFunds Corp.1	166,783		2,735,241
New Jersey Resources Corp.	72,197		2,729,047
Corporate Office Properties Trust	109,154		2,728,850
American Management Systems Inc.1	141,551		2,717,779
Texas Industries Inc.	75,130		2,715,950
Anixter International Inc.	95,011		2,684,061
Liberty Corp.	57,940		2,680,884
First Citizens BancShares Inc. Class A	21,776		2,678,448
Insight Enterprises Inc.1	138,753		2,670,995
Benchmark Electronics Inc.1	84,736		2,667,489
NetIQ Corp.1	190,431		2,658,417
AMCORE Financial Inc.	88,647		2,640,794
Casey’s General Store Inc.	157,990		2,622,634
Skyworks Solutions Inc.1	224,762		2,620,725
Six Flags Inc.1	330,400		2,593,640
Saxon Capital Inc.1	91,110		2,588,435
Vintage Petroleum Inc.	176,431		2,586,478
Ryan’s Family Steak Houses Inc.1	150,302		2,571,667
Provident Bankshares Corp.	81,922		2,570,712
Sterling Financial Corp. (Washington)1	69,519		2,564,556
Chiquita Brands International Inc.1	122,717		2,558,649
Philadelphia Consolidated Holding Corp.1	43,935		2,548,230
Colonial Properties Trust	62,393		2,545,634
BankAtlantic Bancorp Inc. Class A	149,958		2,543,288
Southwest Gas Corp.	108,642		2,542,223
Technitrol Inc.1	134,152		2,522,058
CH Energy Group Inc.	51,287		2,517,679
Alpharma Inc. Class A	128,370		2,517,336
Jacuzzi Brands Inc.1	267,282		2,507,105
Stewart Enterprises Inc. Class A1	344,392		2,503,730
Essex Property Trust Inc.	38,209		2,502,689
Seacor Holdings Inc.1	60,811		2,498,116
RLI Corp.	64,600		2,493,560
UniSource Energy Corp.	101,488		2,493,560
AMR Corp.1	195,816		2,492,737
USEC Inc.	292,925		2,475,216
ValueClick Inc.1	228,819		2,471,245
Aztar Corp.1	100,611		2,465,976
Stillwater Mining Co.1	156,755		2,461,054
Quanex Corp.	57,884		2,459,491
National Health Investors Inc.	79,107		2,436,496
Monaco Coach Corp.	90,782		2,432,958
Imagistics International Inc.1	55,209		2,431,956
DRS Technologies Inc.1	86,907		2,431,658
Magnum Hunter Resources Inc.1	239,741		2,430,974
Tecumseh Products Co. Class A	57,617		2,425,676
El Paso Electric Co.1	175,149		2,424,062
ABM Industries Inc.	134,250		2,409,787
Viasys Healthcare Inc.1	106,458		2,408,080
Sola International Inc.1	103,210		2,399,633
Medarex Inc.1	262,869		2,357,935
Ruddick Corp.	116,429		2,356,523
NBT Bancorp Inc.	104,650		2,354,625
Albany International Corp. Class A	87,549		2,354,193
Shaw Group Inc. (The)1	216,838		2,350,524
Stewart Information Services Corp.	59,640		2,343,852
Manitowoc Co. Inc. (The)	79,141		2,340,991
Carpenter Technology Corp.	71,194		2,340,859
Electro Scientific Industries Inc.1	99,275		2,336,933
Axcelis Technologies Inc.1	209,885		2,333,921
MFA Mortgage Investments Inc.	230,540		2,328,454
Summit Properties Inc.	97,348		2,321,750
Sensient Technologies Corp.	124,252		2,319,785
Finish Line Inc. (The)1	62,701		2,318,683
Journal Register Co.1	110,621		2,311,979
Brown Shoe Co. Inc.	63,366		2,308,423
Cash America International Inc.	99,846		2,301,450
Landry’s Restaurants Inc.	77,087		2,299,505
Province Healthcare Co.1	143,760		2,285,784
IHOP Corp.	66,352		2,285,163
Genlyte Group Inc. (The)1	40,737		2,282,901
USG Corp.1	130,477		2,282,043
EastGroup Properties Inc.	64,270		2,281,585
Ionics Inc.1	80,005		2,272,142
NeighborCare Inc.1	93,610		2,270,043
Lin TV Corp. Class A1	95,272		2,268,426
Invacare Corp.	50,250		2,268,285
Range Resources Corp.	186,717		2,264,877
THQ Inc.1	111,851		2,262,746
Price Communications Corp.1	144,070		2,260,458
Mid-America Apartment Communities Inc.	60,872		2,260,177

SCHEDULES OF INVESTMENTS 95

Schedule of Investments (Continued)

iSHARES^® RUSSELL 2000 VALUE INDEX FUND

March 31, 2004

Security	Shares	Value
G&K Services Inc. Class A	60,647	$	2,257,281
Overseas Shipholding Group Inc.	61,810		2,256,065
Heritage Property Investment Trust Inc.	72,085		2,241,843
Ascential Software Corp.1	102,179		2,239,764
First Charter Corp.	106,130		2,234,036
Hudson River Bancorp Inc.	108,232		2,229,579
Corus Bankshares Inc.	55,141		2,221,631
CharterMac	89,164		2,209,484
Meritage Corp.1	29,664		2,202,552
Idex Corp.	50,480		2,194,870
JLG Industries Inc.	153,391		2,193,491
Horace Mann Educators Corp.	139,513		2,193,144
Keystone Property Trust	90,157		2,191,717
Northwest Airlines Corp.1	216,752		2,191,363
RAIT Investment Trust	74,008		2,186,936
PolyOne Corp.1	327,096		2,175,188
Sovran Self Storage Inc.	52,073		2,175,089
Anworth Mortgage Asset Corp.	155,753		2,174,312
Houston Exploration Co.1	48,595		2,173,654
Integrated Silicon Solution Inc.1	122,443		2,172,139
Anthracite Capital Inc.	170,538		2,170,949
Spherion Corp.1	211,468		2,163,318
Nuevo Energy Co.1	65,565		2,134,796
PS Business Parks Inc.	45,901		2,127,511
Incyte Corp.1	255,620		2,124,202
Sonic Automotive Inc.	84,582		2,118,779
Kindred Healthcare Inc.1	42,050		2,115,115
Arkansas Best Corp.	77,437		2,074,537
Denbury Resources Inc.1	122,720		2,069,059
Alaska Air Group Inc.1	83,882		2,068,530
Schulman (A.) Inc.	105,124		2,065,687
Dollar Thrifty Automotive Group Inc.1	81,711		2,064,837
Laclede Group Inc. (The)	67,913		2,057,764
Community Bank System Inc.	44,322		2,051,222
Gold Bancorp Inc.	125,646		2,048,030
Oxford Industries Inc.	44,138		2,038,734
AK Steel Holding Corp.1	347,194		2,038,029
Central Garden & Pet Co.1	56,606		2,037,816
Bandag Inc.	40,923		2,036,738
Argosy Gaming Co.1	57,285		2,036,482
Longview Fibre Co.	182,160		2,032,906
Empire District Electric Co. (The)	89,393		2,024,751
Modine Manufacturing Co.	77,678		2,024,289
Stage Stores Inc.1	52,319		2,024,222
First Financial Bancorp	109,008		2,016,648
Woodward Governor Co.	31,569		2,012,208
UIL Holdings Corp.	41,771		2,012,109
Equity One Inc.	104,316		2,004,954
Spartech Corp.	80,453		2,003,280
Harleysville Group Inc.	107,530		2,002,209
Primus Telecommunications Group Inc.1	237,719		1,999,217
Longs Drug Stores Corp.	106,045		1,996,827
Universal Compression Holdings Inc.1	60,645		1,995,221
Mid-State Bancshares	84,098		1,988,918
Arch Chemicals Inc.	70,400		1,987,392
Roto-Rooter Inc.	39,137		1,978,375
Koger Equity Inc.	84,244		1,977,207
UICI1	133,851		1,975,641
MCG Capital Corp.	97,555		1,969,635
Pilgrim’s Pride Corp.	87,542		1,963,567
South Jersey Industries Inc.	47,969		1,962,412
Steel Dynamics Inc.1	79,119		1,960,569
Pacific Capital Bancorp	49,162		1,950,257
PSS World Medical Inc.1	174,281		1,950,204
WesBanco Inc.	64,127		1,946,254
Watsco Inc.	66,937		1,941,173
Sunrise Senior Living Inc.1	54,055		1,937,872
Newport Corp.1	114,865		1,920,543
Cornerstone Realty Income Trust Inc.	205,115		1,917,825
Mine Safety Appliances Co.	67,512		1,914,640
Unizan Financial Corp.	77,085		1,914,021
Republic Bancorp Inc.	135,566		1,906,058
Tenneco Automotive Inc.1	149,357		1,895,340
Griffon Corp.1	87,693		1,894,169
Plains Exploration & Production Co.1	101,491		1,891,792
Handleman Co.	78,932		1,889,632
Kirby Corp.1	55,809		1,885,786
Warnaco Group Inc. (The)1	93,377		1,875,944
Gray Television Inc.	127,877		1,869,562
Florida East Coast Industries Inc.	52,139		1,867,619

96 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 2000 VALUE INDEX FUND

March 31, 2004

Security	Shares	Value
American Eagle Outfitters Inc.1	69,091	$	1,862,693
Cambrex Corp.	68,868		1,852,549
Silicon Graphics Inc.1	728,698		1,850,893
Quanta Services Inc.1	261,003		1,847,901
Gardner Denver Inc.1	68,234		1,847,777
Esterline Technologies Corp.1	74,268		1,845,560
School Specialty Inc.1	51,884		1,845,514
Brookfield Homes Corp.	52,378		1,837,944
MAXIMUS Inc.1	52,448		1,835,680
Harvest Natural Resources Inc.1	125,567		1,834,534
LaSalle Hotel Properties	77,073		1,818,923
Interstate Bakeries Corp.	159,789		1,816,801
FelCor Lodging Trust Inc.1	174,323		1,816,446
AMLI Residential Properties Trust	64,240		1,814,781
Selective Insurance Group Inc.	51,399		1,802,563
S1 Corp.1	236,155		1,794,778
Wolverine World Wide Inc.	74,252		1,791,701
Armor Holdings Inc.1	54,097		1,790,611
Anchor BanCorp Wisconsin Inc.	70,054		1,789,880
Taubman Centers Inc.	70,399		1,771,943
Sterling Financial Corp. (Pennsylvania)	68,888		1,771,111
Otter Tail Corp.	66,820		1,765,384
Washington Real Estate Investment Trust	54,389		1,764,923
TBC Corp.1	59,898		1,759,204
Hecla Mining Co.1	207,108		1,741,778
Rayovac Corp.1	60,886		1,741,340
St. Mary Land & Exploration Co.	51,917		1,735,585
URS Corp.1	60,219		1,733,103
Fidelity Bankshares Inc.	47,199		1,729,843
Swift Energy Co.1	91,446		1,723,757
Sports Authority Inc. (The)1	42,986		1,722,879
Russell Corp.	93,834		1,713,409
Universal Forest Products Inc.	55,390		1,709,335
Argonaut Group Inc.1	89,727		1,707,505
PFF Bancorp Inc.	44,767		1,706,966
Aviall Inc.1	112,061		1,703,327
TierOne Corp.	72,439		1,701,592
AMC Entertainment Inc.1	110,668		1,698,754
Pharmacopeia Inc.1	84,411		1,698,349
Genesco Inc.1	73,161		1,695,872
Triumph Group Inc.1	50,928		1,683,170
Schnitzer Steel Industries Inc. Class A	52,256		1,675,311
Regal-Beloit Corp.	83,813		1,674,584
K2 Inc.1	104,265		1,671,368
Alexion Pharmaceuticals Inc.1	69,916		1,661,204
Parkway Properties Inc.	35,515		1,660,326
Ferro Corp.	63,277		1,654,694
First Community Bancorp	44,046		1,646,880
Phillips-Van Heusen Corp.	88,872		1,644,132
Jo-Ann Stores Inc.1	58,366		1,637,166
Cell Genesys Inc.1	135,833		1,635,429
Microsemi Corp.1	119,279		1,631,737
Ditech Communications Corp.1	97,775		1,629,909
Hawthorne Financial Corp.1	36,918		1,624,023
Cathay General Bancorp	24,600		1,619,172
Global Industries Ltd.1	275,518		1,611,780
Petroleum Development Corp.1	56,205		1,610,273
Schweitzer-Mauduit International Inc.	49,825		1,609,348
Financial Federal Corp.1	48,101		1,608,016
Greif Inc. Class A	45,943		1,605,248
First Financial Bankshares Inc.	40,055		1,605,004
Hain Celestial Group Inc.1	72,650		1,604,838
Connecticut Bankshares Inc.	30,852		1,603,070
EMCOR Group Inc.1	43,476		1,595,569
Community First Bankshares Inc.	49,584		1,593,630
Fleetwood Enterprises Inc.1	129,532		1,590,653
Community Trust Bancorp Inc.	48,108		1,587,564
Insight Communications Co. Inc.1	158,351		1,583,510
Safeguard Scientifics Inc.1	425,334		1,582,242
Lone Star Steakhouse & Saloon Inc.	54,171		1,581,251
Toro Co.	25,471		1,579,202
First Merchants Corp.	65,566		1,576,862
FIRSTFED AMERICA BANCORP INC.	56,552		1,576,104
Superior Industries International Inc.	44,417		1,574,138
First Sentinel Bancorp Inc.	74,374		1,573,010
Gaylord Entertainment Co.1	50,893		1,572,594
MTS Systems Corp.	56,540		1,564,462
International Multifoods Corp.1	62,928		1,555,580
Veritas DGC Inc.1	74,984		1,552,169
Boca Resorts Inc. Class A1	88,775		1,549,124
Meristar Hospitality Corp.1	222,554		1,546,750

SCHEDULES OF INVESTMENTS 97

Schedule of Investments (Continued)

iSHARES^® RUSSELL 2000 VALUE INDEX FUND

March 31, 2004

Security	Shares	Value
Group 1 Automotive Inc.1	42,659	$	1,544,256
Trammell Crow Co.1	109,917		1,542,136
Glenborough Realty Trust Inc.	68,821		1,538,149
Federal Signal Corp.	77,482		1,538,018
S&T Bancorp Inc.	50,964		1,531,978
Sybase Inc.1	72,695		1,525,868
Consolidated Graphics Inc.1	39,627		1,523,658
NCO Group Inc.1	65,067		1,520,616
Belden Inc.	80,017		1,517,922
Sun Communities Inc.	35,404		1,515,999
Smith (A.O.) Corp.	52,279		1,513,477
Glimcher Realty Trust	55,769		1,511,340
WCI Communities Inc.1	60,348		1,510,510
Net.B@nk Inc.	123,394		1,506,641
Chesapeake Corp.	62,971		1,503,118
Prime Hospitality Corp.1	131,406		1,495,400
Albany Molecular Research Inc.1	94,035		1,494,216
American Home Mortgage Investment Corp.	51,789		1,491,523
Alfa Corp.	108,839		1,481,299
Glacier Bancorp Inc.	45,923		1,481,017
ESS Technology Inc.1	100,651		1,475,544
Paxar Corp.1	99,802		1,472,080
First Federal Capital Corp.	68,788		1,464,497
National Penn Bancshares Inc.	46,149		1,455,078
SOURCECORP Inc.1	54,614		1,447,271
Lance Inc.	88,056		1,443,238
Kramont Realty Trust	76,351		1,443,034
Triad Guaranty Inc.1	27,348		1,442,607
General Communication Inc. Class A1	158,306		1,440,585
West Pharmaceutical Services Inc.	38,500		1,439,900
First Republic Bank	37,330		1,439,445
United Auto Group Inc.	52,587		1,438,780
Olin Corp.	80,449		1,436,015
Hologic Inc.1	70,636		1,430,379
Bedford Property Investors Inc.	46,931		1,429,988
ShopKo Stores Inc.1	97,583		1,426,663
Investors Real Estate Trust	145,164		1,425,510
Orthodontic Centers of America Inc.1	180,241		1,423,904
Primedia Inc.1	525,843		1,419,776
First Financial Corp.	48,435		1,419,630
United Community Financial Corp.	108,468		1,413,338
Perot Systems Corp. Class A1	105,737		1,406,302
William Lyon Homes Inc.1	15,044		1,402,101
Ocular Sciences Inc.1	47,940		1,397,451
Equity Inns Inc.	151,812		1,396,670
Berry Petroleum Co. Class A	51,182		1,396,245
Credence Systems Corp.1	117,293		1,393,441
NCI Building Systems Inc.1	59,351		1,392,374
Stride Rite Corp.	131,196		1,391,990
Pinnacle Entertainment Inc.1	100,742		1,390,240
Simmons First National Corp. Class A	50,434		1,389,457
EnPro Industries Inc.1	73,308		1,386,987
Infinity Property & Casualty Corp.	44,090		1,385,749
SonicWALL Inc.1	155,183		1,384,232
Offshore Logistics Inc.1	60,048		1,384,106
Applied Industrial Technologies Inc.	60,618		1,377,241
Alderwoods Group Inc.1	132,210		1,374,984
Rofin-Sinar Technologies Inc.1	46,058		1,374,831
RadiSys Corp.1	65,707		1,373,276
TriQuint Semiconductor Inc.1	187,525		1,368,933
Ocwen Financial Corp.1	140,178		1,355,521
Local Financial Corp.1	62,039		1,352,450
NACCO Industries Inc.	16,401		1,351,442
Weis Markets Inc.	40,036		1,351,215
Town & Country Trust (The)	49,657		1,350,670
Irwin Financial Corp.	50,040		1,350,079
Allegiant Bancorp Inc.	45,760		1,345,802
Columbia Banking System Inc.	47,977		1,343,356
Hanger Orthopedic Group Inc.1	74,266		1,340,501
American States Water Co.	54,430		1,328,092
InfoSpace Inc.1	34,137		1,326,905
Datascope Corp.	37,680		1,324,075
Jakks Pacific Inc.1	88,236		1,323,540
Integra Bank Corp.	54,934		1,323,360
MB Financial Inc.	33,931		1,322,970
Nu Skin Enterprises Inc. Class A	65,492		1,319,664
Applera Corp. – Celera Genomics Group1	90,753		1,316,826
Methode Electronics Inc.	101,685		1,311,737
HomeStore Inc.1	309,796		1,310,437
U.S. Restaurant Properties Inc.	69,416		1,300,856

98 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 2000 VALUE INDEX FUND

March 31, 2004

Security	Shares	Value
Central Parking Corp.	64,777	$	1,300,722
Tredegar Corp.	88,611		1,296,379
Parker Drilling Co.1	310,533		1,294,923
Frontier Airlines Inc.1	123,917		1,291,215
Stewart & Stevenson Services Inc.	88,215		1,289,703
Burlington Coat Factory Warehouse Corp.	65,083		1,288,643
Hanover Compressor Co.1	106,521		1,287,839
Comstock Resources Inc.1	64,607		1,283,741
Century Business Services Inc.1	261,246		1,282,718
RailAmerica Inc.1	106,165		1,279,288
IBERIABANK Corp.	21,527		1,266,864
Robert Mondavi Corp. (The) Class A1	33,488		1,266,181
Rock-Tenn Co. Class A	87,496		1,261,692
Lawson Software Inc.1	152,010		1,261,683
Arris Group Inc.1	136,346		1,254,383
Cohu Inc.	67,223		1,253,709
PalmOne Inc.1	58,611		1,251,931
InFocus Corp.1	133,639		1,249,525
California Water Service Group	44,132		1,248,494
West Coast Bancorp	54,612		1,242,423
Interface Inc. Class A1	156,224		1,241,981
Century Aluminum Co.1	43,926		1,240,031
Hercules Inc.1	107,878		1,238,439
Kimball International Inc. Class B	79,002		1,237,961
MRV Communications Inc.1	371,759		1,237,957
Kaydon Corp.	44,961		1,237,776
Urstadt Biddle Properties Inc. Class A	74,883		1,235,570
AAR Corp.1	100,596		1,235,319
Ramco-Gershenson Properties Trust	43,755		1,233,891
Input/Output Inc.1	158,590		1,229,072
Deltic Timber Corp.	34,475		1,223,173
Coherent Inc.1	46,516		1,222,906
Silicon Storage Technology Inc.1	94,210		1,219,077
GenCorp. Inc.	112,553		1,218,949
Cabot Oil & Gas Corp.	39,781		1,215,707
Park Electrochemical Corp.	47,976		1,213,793
Valhi Inc.	96,070		1,212,403
Haverty Furniture Companies Inc.	56,768		1,208,023
Advanta Corp. Class B	72,567		1,204,612
Walter Industries Inc.	100,724		1,202,645
Saul Centers Inc.	39,212		1,197,927
AMCOL International Corp.	68,638		1,197,733
Agilysys Inc.	100,579		1,196,890
Dress Barn Inc.1	68,194		1,196,123
Marcus Corp.	68,896		1,195,346
State Auto Financial Corp.	46,125		1,190,486
deCODE genetics Inc.1	112,091		1,188,165
Westcorp Inc.	26,763		1,179,445
FBL Financial Group Inc. Class A	41,881		1,176,856
Alabama National Bancorp	21,154		1,174,470
Kaman Corp. Class A	78,384		1,170,273
Bank Mutual Corp.	103,286		1,155,768
JDA Software Group Inc.1	78,943		1,148,621
Glatfelter Co.	102,077		1,147,345
National Western Life Insurance Co. Class A1	7,752		1,145,668
Universal Health Realty Income Trust	33,778		1,138,319
Correctional Properties Trust	36,794		1,133,255
Russ Berrie & Co. Inc.	32,162		1,125,670
1st Source Corp.	45,444		1,118,831
CCBT Financial Companies Inc.	30,310		1,118,439
Maxwell Shoe Co. Inc. Class A1	49,650		1,117,622
BSB Bancorp Inc.	28,924		1,116,466
Presidential Life Corp.	74,025		1,108,895
Choice Hotels International Inc.	24,750		1,107,315
Caraustar Industries Inc.1	94,065		1,095,857
United Fire & Casualty Co.	25,784		1,089,864
Watts Industries Inc. Class A	46,359		1,084,337
Insituform Technologies Inc. Class A1	69,325		1,083,550
R&G Financial Corp. Class B	31,249		1,079,340
RTI International Metals Inc.1	68,170		1,079,131
CB Bancshares Inc.	15,430		1,078,403
CDI Corp.	33,391		1,077,861
Thomas Industries Inc.	34,049		1,072,544
Exar Corp.1	57,961		1,072,278
Octel Corp.	35,840		1,069,824
Topps Co. (The)	111,810		1,067,786
Arctic Cat Inc.	41,865		1,067,139
Omega Financial Corp.	29,133		1,065,161
Delta & Pine Land Co.	42,617		1,063,294
Georgia Gulf Corp.	35,138		1,059,411

SCHEDULES OF INVESTMENTS 99

Schedule of Investments (Continued)

iSHARES^® RUSSELL 2000 VALUE INDEX FUND

March 31, 2004

Security	Shares	Value
Standex International Corp.	39,197	$	1,058,319
Peoples Bancorp Inc.	37,992		1,056,558
Vail Resorts Inc.1	67,030		1,056,393
DIMON Inc.	148,607		1,055,110
Genesis HealthCare Corp.1	43,316		1,054,745
Analogic Corp.	23,137		1,052,502
Bel Fuse Inc. Class B	32,118		1,051,543
Valmont Industries Inc.	52,591		1,050,768
Banner Corp.	35,767		1,047,615
Wind River Systems Inc.1	94,073		1,041,388
Quantum Corp.1	280,666		1,038,464
Ethyl Corp.1	52,363		1,037,311
E.piphany Inc.1	142,517		1,028,973
Nabi Biopharmaceuticals1	66,150		1,028,633
ADVO Inc.	31,804		1,024,725
Universal American Financial Corp.1	84,377		1,012,524
Tower Automotive Inc.1	200,226		1,009,139
Peoples Holding Co.	29,943		1,009,079
Energy Partners Ltd.1	75,570		1,008,859
Atwood Oceanics Inc.1	28,302		1,007,268
Elizabeth Arden Inc.1	47,563		1,004,531
Keane Inc.1	63,754		1,003,488
CIRCOR International Inc.	44,269		1,000,479
WSFS Financial Corp.	19,912		998,985
J&J Snack Foods Corp.1	22,030		995,315
DuPont Photomasks Inc.1	42,671		992,527
Buckeye Technologies Inc.1	95,759		992,063
Crompton Corp.	155,148		989,844
Apogee Enterprises Inc.	79,960		985,907
Bank of Granite Corp.	47,393		979,613
Brookstone Inc.1	35,603		979,439
Midas Inc.1	50,277		977,888
Plexus Corp.1	54,921		977,045
Brush Engineered Materials Inc.1	48,011		973,183
NUI Corp.	57,411		970,820
Bowne & Co. Inc.	56,754		970,493
Cato Corp. Class A	48,314		970,145
Riggs National Corp.	56,127		965,946
Pope & Talbot Inc.	56,180		965,734
Intertan Inc.1	68,964		963,427
Artesyn Technologies Inc.1	100,989		961,415
PAREXEL International Corp.1	53,620		958,189
First Financial Holdings Inc.	31,978		955,822
Wellman Inc.	114,442		955,591
Central Vermont Public Service Corp.	42,423		954,517
Tompkins Trustco Inc.	20,965		953,908
EDO Corp.	39,522		951,690
Praecis Pharmaceuticals Inc.1	160,988		951,439
SCS Transportation Inc.1	43,180		941,324
CIBER Inc.1	85,544		940,984
Calgon Carbon Corp.	122,177		940,763
Stein Mart Inc.1	68,143		940,373
Goody’s Family Clothing Inc.	65,829		939,380
Second Bancorp Inc.	29,063		938,735
Time Warner Telecom Inc. Class A1	143,633		937,923
City Bank	27,197		936,393
USB Holding Co. Inc.	38,036		933,403
Republic Bancshares Inc.	30,962		929,851
Meridian Resource Corp. (The)1	153,953		926,797
Levitt Corp. Class A1	37,765		925,243
Haemonetics Corp.1	29,411		924,976
Perini Corp.1	58,663		923,942
Flushing Financial Corp.	50,962		922,412
4Kids Entertainment Inc.1	41,124		919,944
Camden National Corp.	28,722		917,668
Southern Financial Bancorp Inc.	20,544		916,262
Dade Behring Holdings Inc.1	20,224		899,564
SWS Group Inc.	50,209		899,243
Patina Oil & Gas Corp.	34,026		893,183
Sycamore Networks Inc.1	218,307		890,693
UniFirst Corp.	32,204		888,186
Zygo Corp.1	56,653		885,486
Immunogen Inc.1	131,636		884,594
Humboldt Bancorp	44,344		879,342
Innkeepers USA Trust	96,173		879,021
Aaron Rents Inc.	35,311		878,891
AMN Healthcare Services Inc.1	47,616		873,754
Encore Acquisition Co.1	31,444		870,999
SCBT Financial Corp.	27,548		867,762
Capital City Bank Group Inc.	21,003		866,374
Cascade Natural Gas Corp.	39,747		866,087
RC2 Corp.1	31,431		864,353

100 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 2000 VALUE INDEX FUND

March 31, 2004

Security	Shares	Value
LTC Properties Inc.	47,584	$	861,746
Astec Industries Inc.1	53,354		859,533
Genesee & Wyoming Inc. Class A1	34,756		858,473
Pericom Semiconductor Corp.1	74,776		858,428
New England Business Service Inc.	25,260		855,051
Atlantic Coast Airlines Holdings Inc.1	117,449		853,854
Washington Trust Bancorp Inc.	32,337		853,697
Steak n Shake Company (The)1	44,200		850,850
Magna Entertainment Corp. Class A1	141,204		850,048
Myers Industries Inc.	68,993		848,614
City Holding Co.	24,738		848,513
RehabCare Group Inc.1	42,679		848,459
Frontier Financial Corp.	24,559		844,584
Extreme Networks Inc.1	116,916		842,964
Lexicon Genetics Inc.1	134,429		842,870
C&D Technologies Inc.	50,439		842,836
MemberWorks Inc.1	24,092		841,293
Skyline Corp.	21,793		840,556
First Indiana Corp.	41,635		838,945
Robbins & Myers Inc.	38,685		833,662
Coachmen Industries Inc.	49,846		831,431
ITLA Capital Corp.1	16,790		830,433
Union Bankshares Corp.	25,625		826,919
Hanmi Financial Corp.	31,046		825,513
Investment Technology Group Inc.1	53,950		825,435
Cirrus Logic Inc.1	108,773		824,499
Interwoven Inc1	82,590		823,422
Harbor Florida Bancshares Inc.	28,425		822,619
InVision Technologies Inc.1	16,542		821,641
Metris Companies Inc.1	101,858		818,938
Nordson Corp.	21,854		818,651
Matrix Service Co.1	60,359		816,657
Triarc Companies Inc. Class B	74,504		816,564
Winston Hotels Inc.	77,460		816,428
Navigant International Inc.1	45,214		813,852
Partners Trust Financial Group Inc.	23,558		805,919
Komag Inc.1	43,774		805,442
Ameron International Corp.	23,853		804,562
MainSource Financial Group Inc.	22,425		803,263
KCS Energy Inc.1	75,036		802,885
Terayon Communication Systems Inc.1	234,366		801,532
Vans Inc.1	53,864		797,187
SJW Corp.	22,927		794,650
Clark Inc.1	46,635		792,795
Pulitzer Inc.	16,423		792,410
Movado Group Inc.	26,398		790,356
Community Banks Inc.	25,318		788,909
Great Lakes REIT Inc.	50,790		786,229
Baldwin & Lyons Inc. Class B	27,073		785,929
Stamps.com Inc.	130,976		784,546
Cleveland-Cliffs Inc.1	11,973		783,393
Healthcare Services Group Inc.	47,409		779,878
REMEC Inc.1	102,595		779,722
Buckle Inc. (The)	26,821		776,736
Avatar Holdings1	20,675		775,106
Pathmark Stores Inc.1	97,047		774,435
WMS Industries Inc.1	24,958		773,698
First Place Financial Corp.	42,599		772,746
Building Materials Holdings Corp.	44,011		772,393
Duane Reade Inc.1	45,534		771,346
MarineMax Inc.1	28,998		770,477
Applica Inc.1	68,454		769,423
Sandy Spring Bancorp Inc.	21,200		769,136
Barnes Group Inc.	27,458		765,804
Acadia Realty Trust	54,176		764,423
GEO Group Inc. (The)1	33,104		761,392
Central Pacific Financial Corp.	25,529		760,509
Ennis Business Forms Inc.	45,098		754,941
ActivCard Corp.1	116,041		750,785
Nautilus Group Inc. (The)	47,585		749,464
Getty Realty Corp.	28,192		749,061
CTS Corp.	57,381		748,248
Cascade Corp.	36,778		746,593
Asbury Automotive Group Inc.1	43,116		746,338
Nash Finch Co.	31,471		745,233
Tupperware Corp.	41,827		744,939
Citizens First Bancorp Inc.	30,747		742,848
Sybron Dental Specialties Inc.1	27,153		739,919
Jarden Corp.1	20,811		738,999
Matria Healthcare Inc.1	29,185		738,964
ESCO Technologies Inc.1	15,947		735,476
Grace (W.R.) & Co.1	234,947		733,035

SCHEDULES OF INVESTMENTS 101

Schedule of Investments (Continued)

iSHARES^® RUSSELL 2000 VALUE INDEX FUND

March 31, 2004

Security	Shares	Value
Yardville National Bancorp	29,670	$	732,849
Dura Automotive Systems Inc.1	54,779		728,013
WD-40 Co.	20,772		727,020
InterCept Inc.1	59,593		726,439
Orbital Sciences Corp.1	57,868		725,086
Farmer Brothers Co.	2,010		723,600
CSK Auto Corp.1	39,871		722,064
Action Performance Companies Inc.	47,256		721,599
First Community Bancshares Inc.	23,587		720,347
Angelica Corp.	31,516		719,510
Heidrick & Struggles International Inc.1	30,035		718,738
LSI Industries Inc.	59,088		718,510
BancFirst Corp.	12,947		717,782
Omega Healthcare Investors Inc.	65,943		716,800
Bassett Furniture Industries Inc.	36,032		714,515
Lithia Motors Inc. Class A	25,841		714,504
AmericanWest Bancorporation1	36,233		714,152
Northwest Bancorp Inc.	27,870		712,636
FNB Corp. (Virginia)	25,713		707,879
Interchange Financial Services Corp.	29,038		705,623
Corvis Corp.1	366,572		703,818
Horizon Financial Corp.	38,145		703,012
TriCo Bancshares	18,794		702,520
First Oak Brook Bancshares Class A	23,003		701,822
Patriot Bank Corp.	23,881		699,236
Sanfilippo (John B.) & Son Inc.1	19,036		698,621
Vital Sign Inc.	20,704		698,346
SBS Technologies Inc.1	45,065		696,705
CT Communications Inc.	50,251		694,971
Capital Corporation of the West	17,728		693,697
Volt Information Sciences Inc.1	28,342		692,678
Emmis Communications Corp.1	28,934		688,919
Maxygen Inc.1	72,383		686,915
Financial Institutions Inc.	29,939		686,202
Southside Bancshares Inc.	36,852		685,816
Cubic Corp.	26,247		682,422
Mission West Properties Inc.	51,143		677,645
Berkshire Hills Bancorp Inc.	19,361		675,699
Iomega Corp.	120,190		671,862
HEICO Corp.	42,741		670,606
MasTec Inc.1	70,810		670,571
Midland Co. (The)	26,800		668,660
Rent-Way Inc.1	75,973		668,562
EMS Technologies Inc.1	34,562		667,392
Intermagnetics General Corp.1	25,163		666,819
GameStop Corp.1	36,871		664,415
ABC Bancorp	35,047		664,141
Bally Total Fitness Holding Corp.1	113,051		662,479
Steven Madden Ltd.1	33,165		661,973
Southwest Bancorp Inc.	38,155		660,082
Willow Grove Bancorp Inc.	36,781		658,380
Skechers U.S.A. Inc. Class A1	50,046		656,103
Capstead Mortgage Corp.	35,486		654,717
Wet Seal Inc. Class A1	79,334		654,506
National Presto Industries Inc.	16,849		653,067
Department 56 Inc.1	44,185		653,054
American Physicians Capital Inc.1	31,241		652,937
Resource America Inc. Class A	35,066		648,721
Guilford Pharmaceuticals Inc.1	89,448		646,709
Churchill Downs Inc.	16,652		645,765
Safety Insurance Group Inc.	33,942		644,898
Lufkin Industries Inc.	20,541		643,960
Sun Bancorp Inc. (New Jersey)1	25,446		643,529
Unifi Inc.1	145,089		642,744
Flagstar Bancorp Inc.	24,987		640,917
NS Group Inc.1	49,248		640,224
D&E Communications Inc.	45,749		640,029
Sterling Bancshares Inc.	47,643		637,940
Kelly Services Inc. Class A	21,543		637,888
Transkaryotic Therapies Inc.1	36,964		634,302
Cross Country Healthcare Inc.1	38,080		634,032
Blair Corp.	23,781		633,764
National Bankshares Inc.	12,582		633,000
Sequa Corp. Class A1	12,765		630,591
Herley Industries Inc.1	33,248		627,722
Tweeter Home Entertainment Group Inc.1	66,206		624,985
Penn Engineering & Manufacturing Corp.	36,780		624,157
Manufactured Home Communities Inc.	17,661		623,433
Silgan Holdings Inc.1	13,631		623,346
Aftermarket Technology Corp.1	42,383		622,606

102 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 2000 VALUE INDEX FUND

March 31, 2004

Security	Shares	Value
Encore Wire Corp.1	16,705	$	622,261
Lakeland Financial Corp.	18,394		621,165
OMNOVA Solutions Inc.1	118,256		620,844
Tennant Co.	15,552		616,948
Anaren Inc.1	38,913		614,047
Collins & Aikman Corp.1	111,503		613,266
CNA Surety Corp.1	55,475		612,999
Global Power Equipment Group Inc.1	72,360		609,271
Coastal Bancorp Inc.	14,557		601,932
Advent Software Inc.1	32,058		599,485
Electro Rent Corp.	59,378		597,343
TIBCO Software Inc.1	73,016		596,541
Dave & Buster’s Inc.1	39,592		595,860
Alliance Semiconductor Corp.1	78,247		595,460
Cable Design Technologies Corp.1	62,034		588,082
Alloy Inc.1	122,319		587,131
Oshkosh Truck Corp.	10,440		581,508
Theragenics Corp.1	107,055		575,956
Midway Games Inc.1	79,100		575,848
Credit Acceptance Corp.1	30,285		575,112
Boykin Lodging Co.1	61,967		575,054
Tanger Factory Outlet Centers Inc.	12,683		574,794
Stanley Furniture Co. Inc.	14,675		569,830
Great Southern Bancorp Inc.	11,586		569,220
Umpqua Holdings Corp.	28,138		568,106
First State Bancorp	18,374		567,022
Mindspeed Technologies Inc.1	86,827		566,980
Gorman-Rupp Co. (The)	21,834		565,501
SEMCO Energy Inc.	99,804		564,891
Southwest Water Co.	41,269		564,147
Gene Logic Inc.1	111,556		563,358
Lawson Products Inc.	17,275		563,338
Casella Waste Systems Inc. Class A1	38,579		560,939
Ducommun Inc.1	23,987		560,576
Farmers Capital Bank Corp.	15,994		559,790
Kansas City Life Insurance Co.	13,054		558,581
World Wrestling Entertainment Inc.	38,608		557,886
CSS Industries Inc.	16,653		553,712
PRG-Schultz International Inc.1	125,165		550,726
EnergySouth Inc.	15,742		549,537
Central Coast Bancorp1	29,870		548,712
Valence Technology Inc.1	122,032		543,042
Manugistics Group Inc.1	79,153		542,198
Associated Estates Realty Corp.	58,494		536,390
Tier Technologies Inc. Class B1	50,025		534,767
Roxio Inc.1	119,195		532,802
Massbank Corp.	13,370		531,725
GA Financial Inc.	14,985		525,224
LSB Bancshares Inc.	30,378		524,628
First of Long Island Corp.	10,445		524,548
Quaker City Bancorp Inc.	9,622		523,437
Heritage Commerce Corp.1	40,200		522,600
Republic Bancorp Inc. Class A	26,836		522,495
American Mortgage Acceptance Corp.	28,840		520,562
Sipex Corp.1	82,546		520,040
State Financial Services Corp. Class A	18,344		518,952
Isle of Capri Casinos Inc.1	20,627		518,563
Lattice Semiconductor Corp.1	59,226		517,043
Harland (John H.) Co.	16,588		516,219
FloridaFirst Bancorp Inc.	19,108		515,534
Cornell Companies Inc.1	44,230		511,741
Chesapeake Utilities Corp.	19,969		511,606
Smart & Final Inc.1	44,416		509,896
Monro Muffler Brake Inc.1	20,361		508,821
Dominion Homes Inc.1	13,345		507,777
Gerber Scientific Inc.1	74,665		507,722
CFS Bancorp Inc.	34,558		506,275
EarthLink Inc.1	56,775		503,026
Pomeroy IT Solutions Inc.	34,658		502,541
First United Corp.	21,788		501,996
iGATE Corp.1	72,013		501,931
Middlesex Water Co.	24,206		501,064
OSI Systems Inc.1	25,025		500,500
Nature’s Sunshine Products Inc.	33,460		496,546
M&F Worldwide Corp.1	36,180		495,304
Sauer-Danfoss Inc.	36,167		494,403
Accredited Home Lenders Holding Co.1	12,527		493,564
CRIIMI MAE Inc.1	44,224		493,098
Sterling Bancorp (New York)	16,816		490,186
First Defiance Financial Corp.	17,594		490,169
Semitool Inc.1	38,344		488,503
National Processing Inc.1	25,703		488,357

SCHEDULES OF INVESTMENTS 103

Schedule of Investments (Continued)

iSHARES^® RUSSELL 2000 VALUE INDEX FUND

March 31, 2004

Security	Shares	Value
BancTrust Financial Group Inc.	27,837	$	487,147
Guess ? Inc.1	26,953		485,963
Infonet Services Corp. Class B1	244,147		485,853
Standard Register Co. (The)	30,173		483,673
Penn-America Group Inc.	32,960		483,194
Provident Financial Holdings Inc.	18,568		482,397
Photronics Inc.1	27,162		481,854
Sizeler Property Investors Inc.	41,334		481,128
PennFed Financial Services Inc.	13,546		478,987
Santander BanCorp	17,400		478,500
Hooker Furniture Corp.	20,555		477,698
West Marine Inc.1	14,944		475,966
Libbey Inc.	18,348		475,764
Texas Regional Bancshares Inc. Class A	11,151		474,475
Symmetricom Inc.1	52,760		473,257
MSC.Software Corp.1	53,639		472,560
PMA Capital Corp. Class A	77,590		470,971
Compucom Systems Inc.1	85,427		468,994
Computer Horizons Corp.1	108,949		468,481
Integrated Electrical Services Inc.1	41,588		467,449
Savient Pharmaceuticals Inc.1	123,345		466,244
Siliconix Inc.1	9,964		464,621
Franklin Electric Co. Inc.	7,245		461,362
Wayne Bancorp Inc.	19,692		460,793
21st Century Insurance Group	31,665		455,976
Network Equipment Technologies Inc.1	45,683		455,916
Cubist Pharmaceuticals Inc.1	49,454		454,977
Arrow International Inc.	15,198		454,268
Pennsylvania Real Estate Investment Trust	12,048		453,728
Sanders Morris Harris Group Inc.	37,842		452,969
Seacoast Banking Corp. of Florida	21,764		450,515
TeleTech Holdings Inc.1	71,744		449,117
Prosperity Bancshares Inc.	18,837		443,800
Camco Financial Corp.	26,954		441,237
Steinway Musical Instruments Inc.1	13,698		439,021
Seaboard Corp.	1,307		437,845
Exchange National Bancshares Inc.	13,804		437,587
Connecticut Water Service Inc.	15,447		437,150
Riviana Foods Inc.	15,641		436,384
Applied Films Corporation1	15,631		436,105
American Woodmark Corp.	6,533		434,183
Citizens South Banking Corp.	31,947		433,840
Medallion Financial Corp.	49,829		431,021
Parkvale Financial Corp.	15,031		430,788
First Consulting Group Inc.1	68,155		426,650
Westfield Financial Inc.	17,252		424,744
Firstbank Corp.	15,929		423,711
CLARCOR Inc.	9,560		422,074
Stepan Co.	18,463		421,695
Pacific Union Bank	14,357		421,378
Mentor Graphics Corp.1	23,615		420,819
Audiovox Corp. Class A1	21,027		420,540
Milacron Inc.	121,059		420,075
BHA Group Inc.	13,979		419,230
Sykes Enterprises Inc.1	70,421		419,005
National Health Realty Inc.	22,363		417,741
Powell Industries Inc.1	23,443		416,348
Friedman’s Inc.	71,731		416,040
First M&F Corp.	12,221		411,725
Merchants Bancshares Inc.	14,369		409,660
Cole National Corp.1	18,350		404,984
Korn/Ferry International1	25,179		402,864
O’Charley’s Inc.1	21,975		401,044
Alico Inc.	12,568		400,907
NBC Capital Corp.	15,417		400,842
First Horizon Pharmaceutical Corp.1	25,402		400,336
Finlay Enterprises Inc.1	22,204		399,894
American Medical Security Group Inc.1	14,970		399,849
Standard Microsystems Corp.1	15,009		399,840
PalmSource Inc.1	21,938		398,613
CompuCredit Corp.1	18,751		396,396
Powerwave Technologies Inc.1	50,741		395,780
ProAssurance Corp.1	11,183		391,405
WESCO International Inc.1	26,147		389,590
McMoRan Exploration Co.1	26,223		388,100
EverTrust Financial Group Inc.	21,264		387,855
Gibraltar Steel Corp.	15,625		384,062
Kadant Inc.1	18,364		382,889
Hypercom Corp.1	48,040		381,438
Insurance Auto Auctions Inc.1	26,180		380,395
MutualFirst Financial Inc.	15,797		380,234

104 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 2000 VALUE INDEX FUND

March 31, 2004

Security	Shares	Value
TransMontaigne Inc.1	62,183	$	379,316
Great American Financial Resources Inc.	24,008		378,366
American National Bankshares Inc.	15,415		378,130
Summit Bancshares Inc.	12,561		378,086
Finisar Corp.1	173,070		377,293
Century Bancorp Inc. Class A	11,387		376,796
Financial Industries Corp.1	28,347		375,881
Capitol Bancorp Ltd.	13,851		375,362
Information Holdings Inc.1	18,182		374,913
American Land Lease Inc.	18,347		374,829
Pantry Inc. (The)1	18,809		374,675
Independent Bank Corp. (Michigan)	13,442		374,494
Seabulk International Inc.1	41,789		371,922
Royal Bancshares of Pennsylvania Class A	14,535		370,643
MKS Instruments Inc.1	15,354		368,650
Restoration Hardware Inc.1	74,048		368,019
Rex Stores Corp.1	23,348		367,498
American West Holdings Corp. Class B1	38,450		366,428
FuelCell Energy Inc.1	26,989		365,971
Crown Media Holdings Inc.1	45,230		365,911
D&K Healthcare Resources Inc.	35,659		365,505
Dril-Quip Inc.1	22,206		365,067
Viasat Inc.1	14,567		362,427
PICO Holdings Inc.1	22,042		362,150
Perry Ellis International Inc.1	13,137		361,136
Oak Hill Financial Inc.	11,040		360,456
Fisher Communications Inc.1	7,366		359,092
Ryerson Tull Inc.	27,428		359,033
ESB Financial Corp.	25,582		358,148
Cumulus Media Inc. Class A1	17,817		356,162
Parametric Technology Corp.1	78,626		355,390
Gundle/SLT Environmental Inc.1	19,231		354,235
Oil States International Inc.1	26,250		352,800
Deb Shops Inc.	13,661		351,224
Advanced Marketing Services Inc.	35,406		350,519
Warwick Community Bancorp	10,462		350,477
Tarragon Realty Investors Inc.1	24,317		346,517
Oplink Communications Inc.1	136,992		343,850
Navigators Group Inc.1	11,946		343,806
Speedway Motorsports Inc.	11,208		339,714
Pediatrix Medical Group Inc.1	5,373		338,499
Alamo Group Inc.	19,424		337,783
Aether Systems Inc.1	72,221		335,828
Sypris Solutions Inc.	19,658		334,186
Frontier Oil Corp.	17,061		330,642
Owens & Minor Inc.	13,059		330,393
Ingles Markets Inc. Class A	30,758		329,326
CuraGen Corp.1	52,263		326,121
Woodhead Industries Inc.	21,649		324,735
Greenbrier Companies Inc.1	19,175		323,866
Neose Technologies Inc.1	34,397		323,332
Petroleum Helicopters Inc.1	13,028		321,792
McGrath Rentcorp	10,554		321,791
Gabelli Asset Management Inc. Class A	7,959		320,589
Heartland Financial USA Inc.	17,163		320,090
Landauer Inc.	7,608		319,536
Lakeland Bancorp Inc.	19,406		319,423
Hudson Highland Group Inc.1	11,397		317,748
Center Financial Corp.	20,044		315,493
Independence Holding Co.	10,233		315,279
Heartland Express Inc.	13,744		313,088
Taylor Capital Group Inc.	13,575		312,904
Palm Harbor Homes Inc.1	14,841		311,067
Material Sciences Corp.	28,179		309,969
WatchGuard Technologies Inc.1	39,594		309,625
PDI Inc.1	12,233		309,373
MAIR Holdings Inc.1	33,847		309,362
State Bancorp Inc.	12,793		308,311
First Busey Corp. Class A	11,344		307,536
McLeodUSA Inc. Class A1	206,369		307,490
Donegal Group Inc. Class A	15,257		305,750
Courier Corp.	6,808		304,658
OceanFirst Financial Corp.	12,212		304,445
Dobson Communications Corp. Class A1	103,468		299,023
Veeco Instruments Inc.1	10,634		298,284
Foothill Independent Bancorp	13,523		297,506
BRT Realty Trust	12,426		296,484

SCHEDULES OF INVESTMENTS 105

Schedule of Investments (Continued)

iSHARES^® RUSSELL 2000 VALUE INDEX FUND

March 31, 2004

Security	Shares	Value
Price Legacy Corporation1	17,103	$	291,606
First Albany Companies Inc.	21,024		290,972
TTM Technologies Inc.1	23,305		287,118
Young Broadcasting Inc. Class A1	15,818		286,306
U.S. Xpress Enterprises Inc. Class A1	20,052		284,939
Lydall Inc.1	27,637		281,897
Brooks Automation Inc.1	13,400		281,132
PAB Bankshares Inc.	21,994		279,324
Ambassadors International Inc.	21,374		278,931
Regent Communications Inc.1	42,735		278,205
Horizon Offshore Inc.1	89,415		270,927
Richardson Electronics Ltd.	22,214		269,012
Littelfuse Inc.1	7,211		268,249
MedQuist Inc.1	16,777		264,070
Watson Wyatt & Co. Holdings1	10,428		263,203
Internet Security Systems Inc.1	14,835		261,689
Identix Inc.1	45,219		261,321
Eastern Virginia Bankshares	11,334		261,022
CEVA Inc.1	27,642		259,998
Columbia Bancorp	8,441		259,983
Stellent Inc.1	34,796		259,926
C&F Financial Corp.	6,357		259,111
First Bancorp (North Carolina)	8,185		257,746
Hutchinson Technology Inc.1	8,978		251,923
LodgeNet Entertainment Corp.1	13,259		251,921
Enstar Group Inc.1	5,457		251,786
Keynote Systems Inc.1	19,536		251,428
Pegasus Communications Corp.1	6,545		250,935
Charlotte Russe Holding Inc.1	13,563		248,203
Quaker Chemical Corp.	9,758		247,853
KFx Inc.1	23,832		247,614
Security Bank Corp.	8,238		247,140
Macatawa Bank Corp.	8,805		245,395
Cerner Corp.1	5,427		245,246
Sturm Ruger & Co. Inc.	18,039		243,707
SBA Communications Corp.1	62,796		243,648
NN Inc.	20,828		243,063
World Fuel Services Corp.	6,598		242,345
Playtex Products Inc.1	34,949		241,498
Mail-Well Inc.1	53,938		241,103
Technical Olympic USA Inc.1	7,461		238,752
CCC Information Services Group Inc.1	13,392		237,976
Zenith National Insurance Corp.	6,056		237,395
Mobile Mini Inc.1	13,610		235,453
Standard Commercial Corp.	12,544		232,691
Penn Virginia Corp.	3,831		232,159
Wausau-Mosinee Paper Corp.	16,460		231,921
FNB Corp. (North Carolina)	10,855		231,320
Waste Connections Inc.1	5,802		230,920
Bryn Mawr Bank Corp.	10,050		230,145
C-COR.net Corp.1	16,299		228,512
TRC Companies Inc.1	12,202		228,299
CEC Entertainment Inc.1	6,500		225,550
Whitehall Jewellers Inc.1	24,555		224,433
Center Bancorp Inc.	14,190		224,344
Virginia Financial Group Inc.	6,340		220,315
OshKosh B’Gosh Inc. Class A	9,335		218,439
Sun Bancorp Inc. (Pennsylvania)	11,187		218,147
AsiaInfo Holdings Inc.1	33,449		218,087
Trans World Entertainment Corp.1	22,898		217,073
Ampco-Pittsburgh Corp.	16,749		216,230
Commercial Bankshares Inc.	7,962		215,929
Stoneridge Inc.1	14,956		215,666
NetRatings Inc.1	19,453		214,956
Concord Camera Corp.1	34,212		214,851
Northern States Financial Corp.	8,019		213,466
General Cable Corp.1	28,419		209,732
Genesis Microchip Inc.1	12,441		208,511
iPayment Holdings Inc.1	6,231		207,243
Standard Motor Products Inc.	13,200		206,976
Coca-Cola Bottling Co. Consolidated	4,039		206,191
Strattec Security Corp.1	3,241		205,220
Intergraph Corp.1	8,431		203,862
Interland Inc.1	49,183		203,126
Verso Technologies Inc.1	121,623		203,110
Chattem Inc.1	7,820		202,694
Dover Motorsports Inc.	52,263		201,213
Computer Network Technology Corp.1	25,022		200,176
Net2Phone Inc.1	38,392		199,638
Fairchild Corp. (The) Class A1	39,991		199,155
Shoe Carnival Inc.1	12,850		199,047
NYMAGIC Inc.	7,746		195,974

106 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 2000 VALUE INDEX FUND

March 31, 2004

Security	Shares	Value
Mestek Inc.1	10,765	$	193,555
Schawk Inc.	14,377		192,364
Gentiva Health Services Inc.1	12,350		191,301
Chronimed Inc.1	24,559		190,823
7-Eleven Inc.1	12,468		189,140
K-Swiss Inc. Class A	7,706		188,566
Metrologic Instruments Inc.1	8,014		187,528
Hampshire Group Ltd.1	6,113		186,324
Aaon Inc.1	9,386		185,749
Maritrans Inc.	11,742		184,467
Oceaneering International Inc.1	5,955		181,330
CUNO Inc.1	4,009		179,924
DJ Orthopedics Inc.1	6,958		179,864
NetScout Systems Inc.1	23,384		179,823
Greater Community Bancorp	11,166		179,661
Coastal Financial Corp.	11,039		179,376
Bay View Capital Corp.	80,265		178,991
Crawford & Co. Class B	34,938		177,485
Three-Five Systems Inc.1	26,988		176,771
NASB Financial Inc.	4,391		174,674
Nelson (Thomas) Inc.	6,388		173,881
EMC Insurance Group Inc.	8,209		172,882
Systemax Inc.1	32,632		172,297
Beverly Enterprises Inc.1	26,815		171,616
Alliance Imaging Inc.1	42,564		166,000
Martha Stewart Living Omnimedia Inc. Class A1	14,962		164,582
Wilsons The Leather Experts Inc.1	58,167		162,286
Serologicals Corp.1	7,934		161,854
Inverness Medical Innovations Inc.1	8,744		160,015
Pemstar Inc.1	43,798		159,863
Kronos Worldwide Inc.	5,210		157,825
EGL Inc.1	8,783		157,743
TALX Corp.	7,139		156,701
Omega Protein Corp.1	21,541		156,603
Metro One Telecommunications Inc.1	66,847		153,748
Zhone Technologies Inc.1	39,476		153,562
Arden Group Inc. Class A	1,953		147,451
Great Atlantic & Pacific Tea Co.1	18,765		145,241
Shenandoah Telecommunications Co.	6,289		143,704
Brady Corp. Class A	3,753		142,914
NL Industries Inc.	10,259		142,600
CVB Financial Corp.	6,834		141,874
Sanderson Farms Inc.	3,806		139,794
NYFIX Inc.1	26,736		137,958
Orleans Homebuilders Inc.1	5,638		135,594
Arena Pharmaceuticals Inc.1	20,733		134,764
Lightbridge Inc.1	22,806		134,555
NIC Inc.1	22,150		133,786
Paxson Communications Corp.1	34,050		132,795
Boyds Collection Ltd. (The)1	52,037		130,613
Papa John’s International Inc.1	3,846		130,149
Dover Downs Gaming & Entertainment Inc.	12,044		128,991
Boston Beer Co. Inc. Class A1	6,974		128,461
Oneida Ltd.	52,034		127,483
Holly Corp.	3,980		126,803
Pegasus Solutions Inc.1	10,759		125,665
GulfMark Offshore Inc.1	7,991		125,539
Children’s Place Retail Stores Inc. (The)1	4,001		123,911
Bruker BioSciences Corp.1	23,774		119,108
Playboy Enterprises Inc. Class B1	8,388		117,600
PC Connection Inc.1	14,602		115,210
WFS Financial Inc.	2,632		114,018
Ultimate Electronics Inc.1	17,416		113,726
Main Street Banks Inc.	4,154		113,570
Raindance Communications Inc.1	39,574		112,786
Curative Health Services Inc.1	8,399		112,547
Noland Co.	2,356		112,098
ACLARA BioSciences Inc.1	28,594		112,088
Entrust Inc.1	25,418		111,077
Lindsay Manufacturing Co.	4,567		109,973
Neoforma Inc.1	9,960		108,265
Synplicity Inc.1	14,802		106,574
Vicor Corp.1	8,601		105,534
Inter Parfums Inc.	4,557		104,765
Galyan’s Trading Co.1	10,389		104,513
Modtech Holdings Inc.1	13,970		103,518
Tyler Technologies Inc.1	10,638		103,295
MIM Corp.1	13,572		103,242
ElkCorp	3,810		103,213

SCHEDULES OF INVESTMENTS 107

Schedule of Investments (Continued)

iSHARES^® RUSSELL 2000 VALUE INDEX FUND

March 31, 2004

Security	Shares	Value
Meridian Bioscience Inc.	10,016	$	102,073
MRO Software Inc.1	8,742		101,582
Revlon Inc. Class A1	36,333		100,642
Newpark Resources Inc.1	19,246		100,079
Midwest Banc Holdings Inc.	4,210		99,482
Columbia Bancorp (Oregon)	6,057		99,335
Independent Bank Corp. (Massachusetts)	3,265		98,962
Big 5 Sporting Goods Corp.1	3,759		94,915
MBT Financial Corp.	5,258		90,438
Virage Logic Corp.1	9,749		90,159
Transcontinental Realty Investments Inc.1	6,010		87,205
Register.com1	14,706		87,060
Wild Oats Markets Inc.1	7,023		83,082
GB&T Bancshares Inc.	2,927		82,395
United Capital Corp.	3,753		82,116
National Beverage Corp.	8,494		80,863
Energy Conversion Devices Inc.1	8,221		80,566
Forrester Research Inc.1	4,213		79,836
Covenant Transport Inc. Class A1	4,364		78,683
Emerson Radio Corp.1	20,179		77,084
Blount International Inc.1	7,601		76,010
SureWest Communications	2,790		74,744
Mercantile Bank Corp.	2,073		73,592
Tollgrade Communications Inc.1	4,423		70,591
Vastera Inc.1	17,789		69,021
Keithley Instruments Inc.	3,248		67,266
Optical Communication Products Inc.1	20,042		65,938
First Citizens Banc Corp.	2,466		65,620
Aspen Technology Inc.1	7,815		63,849
SimpleTech Inc.1	13,377		63,541
United Security Bancshares	2,564		63,331
SY Bancorp Inc.	2,812		62,989
Raytech Corp.1	21,406		61,649
IXYS Corp.1	6,542		61,495
Medical Staffing Network Holdings Inc.1	7,811		61,473
Liquidmetal Technologies1	17,839		56,906
Central European Distribution Corp.1	1,753		56,692
Aphton Corp.1	11,619		54,609
Resource Bankshares Corp.	1,665		54,279
Biopure Corp.1	33,264		52,557
Nara Bancorp Inc.	1,681		49,791
Rudolph Technologies Inc.1	2,646		49,560
Option Care Inc.1	4,194		47,770
Redback Networks Inc.1	7,445		46,904
MarketWatch.com Inc.1	3,341		46,574
White Electronic Designs Corp.1	5,349		40,920
Hickory Tech Corp.	2,830		35,177
Clayton Williams Energy Inc.1	971		33,694
Universal Electronics Inc.1	2,549		33,647
Specialty Laboratories Inc.1	3,022		32,638
Atari Inc.1	9,167		31,259
GTC Biotherapeutics Inc.1	13,329		29,324
CoBiz Inc.	1,434		29,297
Maui Land & Pineapple Co. Inc.1	806		27,936
FFLC Bancorp Inc.	754		20,290
P.A.M. Transportation Services Inc.1	1,155		19,982
RCN Corp.1	68,831		19,961
Pegasystems Inc.1	2,388		19,629
Flag Financial Corp.	1,447		18,536
Sirna Therapeutics Inc.1	4,376		17,723
United PanAm Financial Corp.1	941		15,047
American Realty Investors Inc.1	637		6,122
Burnham Pacific Properties Inc.	1,448		376
PetroCorp Inc.2	19,086		—
WilTel Communications Group Inc.2	23,913		—
TOTAL COMMON STOCKS (Cost: $1,450,027,184)			1,710,572,134
SHORT-TERM INVESTMENTS – 23.41%
MONEY MARKET FUNDS – 8.88%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares3,4	104,905,969		104,905,969
Barclays Global Investors Funds Prime Money Market Fund, Institutional Shares3,4	36,853,070		36,853,070
BlackRock Temp Cash Money Market Fund3	1,725,014		1,725,014

108 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 2000 VALUE INDEX FUND

March 31, 2004

Security	Shares or Principal		Value
Short-Term Investment Co.
Liquid Assets Money Market Portfolio3		8,590,325	$	8,590,325
				152,074,378
FLOATING RATE NOTES – 4.75%
Beta Finance Inc.
1.05%, 05/20/043,5	$	1,675,140		1,675,106
1.05%, 09/15/043,5		3,350,279		3,350,126
1.06%, 10/12/043,5		1,675,140		1,675,051
1.14%, 08/23/043,5		1,675,140		1,675,704
CC USA Inc.
1.05%, 04/19/043,5		1,474,123		1,474,119
1.06%, 05/24/043,5		3,350,279		3,350,231
1.09%, 07/15/043,5		1,675,140		1,675,313
1.51%, 02/15/053,5		2,177,682		2,180,711
Dorada Finance Inc.
1.04%, 07/01/043		1,172,597		1,169,515
1.05%, 05/20/043,5		3,350,279		3,350,212
1.24%, 08/09/043		837,570		837,525
1.48%, 01/18/053,5		2,512,709		2,512,610
Five Finance Inc.
1.06%, 04/15/043,5		1,675,140		1,675,140
HBOS Treasury Services PLC
1.10%, 04/22/053		3,350,279		3,350,279
Holmes Financing PLC
1.05%, 04/15/043		335,028		335,028
K2 USA LLC
1.05%, 08/16/043,5		837,570		837,523
1.05%, 09/27/043,5		3,618,301		3,618,037
1.06%, 04/13/043		1,675,140		1,675,137
1.06%, 05/17/043		1,675,140		1,675,129
1.46%, 01/12/053,5		1,675,140		1,675,009
Links Finance LLC
1.05%, 06/28/043		1,675,140		1,675,059
1.06%, 05/04/043		1,675,140		1,675,132
1.06%, 07/20/043		1,340,112		1,340,031
Nationwide Building Society
1.09%, 07/23/043,5		2,512,709		2,512,709
1.11%, 12/28/043,5		3,350,279		3,350,279
Northern Rock PLC
1.11%, 01/13/053,5		3,182,765		3,182,765
Security	Principal		Value
Permanent Financing PLC
1.04%, 03/10/053	$	3,350,279	$	3,350,279
1.05%, 12/10/043		1,675,140		1,675,140
Sigma Finance Inc.
1.05%, 07/01/043		1,675,140		1,675,035
1.06%, 07/20/043		1,675,140		1,675,039
1.09%, 10/07/043		3,350,279		3,349,933
1.24%, 08/06/043		837,570		837,541
Tango Finance Corp.
1.05%, 01/18/053,5		1,474,123		1,474,004
1.06%, 07/15/043,5		1,005,084		1,004,988
1.07%, 02/25/053,5		1,876,156		1,875,818
1.10%, 07/06/043,5		1,005,084		1,005,057
WhistleJacket Capital LLC
1.05%, 09/15/043,5		1,675,140		1,674,987
1.32%, 02/04/053,5		837,570		837,428
White Pine Finance LLC
1.04%, 08/26/043,5		1,675,140		1,675,036
1.05%, 11/15/043,5		2,010,167		2,010,167
1.06%, 04/20/043,5		1,675,140		1,675,140
1.06%, 07/06/043,5		2,010,167		2,010,117
				81,309,189
COMMERCIAL PAPER – 4.39%
Alpine Securitization Corp.
1.03%, 04/14/043		1,574,631		1,574,046
1.03%, 04/20/043		1,675,139		1,674,229
1.03%, 04/23/043		1,976,665		1,975,420
1.03%, 04/26/043		1,675,139		1,673,941
Amsterdam Funding Corp.
1.03%, 05/05/043		1,356,863		1,355,543
Barton Capital Corp.
1.03%, 04/02/043		1,745,797		1,745,747
Blue Ridge Asset Funding Corp.
1.02%, 04/23/043		1,005,084		1,004,457
1.03%, 05/21/043		1,675,140		1,672,743
Corporate Asset Funding
1.05%, 05/21/043		1,742,145		1,739,617
Corporate Receivables Corp.
1.03%, 04/07/043		1,675,140		1,674,852
1.04%, 06/03/043		3,350,278		3,344,182

SCHEDULES OF INVESTMENTS 109

Schedule of Investments (Continued)

iSHARES^® RUSSELL 2000 VALUE INDEX FUND

March 31, 2004

Security	Principal		Value
Delaware Funding Corp.
1.03%, 04/02/043	$	1,675,140	$	1,675,092
1.03%, 05/05/043		2,515,490		2,513,043
1.03%, 05/21/043		837,570		836,372
Edison Asset Securitization
1.07%, 09/21/043		1,675,139		1,666,526
Eureka Securitization Inc.
1.03%, 05/25/043		670,056		669,021
1.04%, 04/14/043		2,010,167		2,009,413
Falcon Asset Securitization
1.03%, 04/15/043		2,013,283		2,012,477
1.03%, 04/22/043		1,976,665		1,975,477
1.03%, 04/30/043		1,675,139		1,673,750
Galaxy Funding Inc.
1.05%, 05/17/043		1,675,139		1,672,903
Gemini Securitization Corp.
1.03%, 04/20/043		1,005,754		1,005,207
1.03%, 04/23/043		1,936,026		1,934,807
1.03%, 04/30/043		1,174,038		1,173,064
1.03%, 05/24/043		837,570		836,300
1.04%, 04/19/043		837,570		837,134
GIRO Funding US Corp.
1.05%, 05/19/043		837,570		836,397
Jupiter Securitization Corp.
1.03%, 04/16/043		3,350,279		3,348,841
1.03%, 04/19/043		4,522,877		4,520,548
1.03%, 04/28/043		2,010,167		2,008,615
1.03%, 04/30/043		2,853,600		2,851,233
Liberty Street Funding Corp.
1.04%, 04/08/043		1,173,804		1,173,566
1.05%, 04/05/043		1,356,863		1,356,705
Polonius Inc.
1.04%, 05/21/043		1,938,136		1,935,337
Preferred Receivables Funding Corp.
1.03%, 04/19/043		3,517,793		3,515,981
1.04%, 04/23/043		3,852,821		3,850,372
1.04%, 05/20/043		837,570		836,384
Receivables Capital Corp.
1.04%, 04/14/043		1,474,123		1,473,569
Scaldis Capital LLC
1.05%, 06/30/043		1,199,400		1,196,251
Thames Asset Global Securitization No. 1 Inc.
1.03%, 04/19/043		1,675,139		1,674,277
Thunder Bay Funding Inc.
1.03%, 04/19/043		1,065,556		1,065,008
1.04%, 04/29/043		1,508,966		1,507,745
				75,076,192
TIME DEPOSITS – 3.74%
Abbey National Treasury Services PLC
1.08%, 04/01/043		11,725,977		11,725,977
1.33%, 02/10/053		1,675,140		1,674,923
1.39%, 02/02/053		1,675,140		1,674,928
1.40%, 10/25/043		3,350,279		3,349,992
Bank of New York
1.39%, 11/01/043		3,350,279		3,350,083
Bank of Nova Scotia
1.24%, 10/07/043		2,512,709		2,512,579
1.42%, 10/29/043		2,512,709		2,512,818
Canadian Imperial Bank of Commerce
1.24%, 10/07/043		2,512,709		2,512,514
1.38%, 11/22/043		837,570		837,611
1.40%, 10/29/043		3,350,279		3,350,231
National City Bank (Cleveland, Ohio)
1.02%, 04/01/043		5,025,419		5,025,419
Toronto-Dominion Bank
1.04%, 06/22/043		837,570		837,570
1.22%, 03/23/053		5,862,988		5,861,986
1.34%, 02/10/053		1,340,112		1,339,938
1.41%, 11/01/043		2,512,709		2,512,562
UBS Finance (Delaware)
1.06%, 04/01/043		6,700,558		6,700,558
1.10%, 09/08/043		3,350,279		3,333,900
1.11%, 12/17/043		5,025,419		4,985,132
				64,098,721

110 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 2000 VALUE INDEX FUND

March 31, 2004

Security	Principal		Value
REPURCHASE AGREEMENTS – 1.17%
Bank of America, NA
1.06%, 04/01/043	$	6,700,558	$	6,700,558
Goldman, Sachs & Co.
1.08%, 04/01/043		13,401,116		13,401,116
				20,101,674
U.S. GOVERNMENT AGENCY NOTES – 0.48%
Federal Home Loan Mortgage Corporation
1.15%, 05/12/043		2,512,709		2,509,418
1.28%, 08/19/043		1,340,112		1,333,441
Federal National Mortgage Association
1.28%, 08/20/043		4,355,363		4,333,528
				8,176,387
TOTAL SHORT-TERM INVESTMENTS (Cost: $400,836,541)				400,836,541
TOTAL INVESTMENTS IN SECURITIES – 123.31% (Cost: $1,850,863,725)				2,111,408,675
Other Assets, Less Liabilities – (23.31%)				(399,135,807	)
NET ASSETS – 100.00%			$	1,712,272,868

¹ Non-income earning securities.

² Security valued at fair value in accordance with procedures approved by the Board of Trustees. See Note 1.

³ All or a portion of this security represents investments of securities lending collateral.

⁴ Issuer is an affiliate of the Fund’s investment advisor. See Note 2.

⁵ Security exempt from registration under Rule 144A of the Securities Act of 1933.

These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 111

Statements of Assets and Liabilities

iSHARES^® TRUST

March 31, 2004

	iShares Russell
	1000 Index Fund			1000  Growth Index Fund			1000  Value Index Fund			2000 Index Fund			2000 Growth Index Fund			2000 Value Index Fund
ASSETS
Investments, at cost:
Unaffiliated issuers	$	1,982,848,667		$	1,676,572,114		$	2,602,248,253		$	5,908,191,081		$	1,525,506,521		$	1,709,104,686
Affiliates of the investment advisor	$	61,692,068		$	44,435,376		$	83,198,623		$	361,561,537		$	122,077,489		$	141,759,039
Investments in securities, at value (including securities on loana) (Note 1):
Unaffiliated issuers	$	2,184,396,643		$	1,721,679,083		$	2,834,498,797		$	5,944,463,342		$	1,751,949,777		$	1,969,649,636
Affiliates of the investment advisor		61,692,068			44,435,376			83,198,623			361,561,537			122,077,489			141,759,039
Receivables:
Investment securities sold		1,027,212			206,235			2,551,128			26,263,299			10,118,988			8,106,381
Dividends and interest		2,471,699			1,562,669			3,974,693			4,302,425			557,944			2,372,320
Capital shares sold		—			31,993			—			110,521			2,668			—
Total Assets		2,249,587,622			1,767,915,356			2,924,223,241			6,336,701,124			1,884,706,866			2,121,887,376
LIABILITIES
Payables:
Investment securities purchased		2,570,565			1,217,440			5,263,492			28,532,885			10,195,664			9,208,932
Collateral for securities on loan (Note 5)		154,808,698			117,129,323			198,566,035			1,017,075,445			350,464,246			394,711,970
Distribution to shareholders		6,923,301			2,894,024			12,823,527			9,173,130			1,046,134			5,004,351
Advisory fees (Note 2)		499,584			528,245			876,877			1,517,369			632,793			689,255
Total Liabilities		164,802,148			121,769,032			217,529,931			1,056,298,829			362,338,837			409,614,508
NET ASSETS	$	2,084,785,474		$	1,646,146,324		$	2,706,693,310		$	5,280,402,295		$	1,522,368,029		$	1,712,272,868
Net assets consist of:
Paid-in capital	$	1,938,003,677		$	1,738,386,397		$	2,539,298,046		$	5,488,114,396		$	1,405,488,241		$	1,528,668,169
Undistributed net investment income		345,870			223,093			551,202			4,383,622			417,892			2,421,577
Accumulated net realized loss		(55,112,049	)		(137,570,135	)		(65,406,482	)		(248,367,984	)		(109,981,360	)		(79,361,828	)
Net unrealized appreciation on investments		201,547,976			45,106,969			232,250,544			36,272,261			226,443,256			260,544,950
NET ASSETS	$	2,084,785,474		$	1,646,146,324		$	2,706,693,310		$	5,280,402,295		$	1,522,368,029		$	1,712,272,868
Shares outstanding		34,450,000			35,000,000			45,300,000			44,900,000			24,350,000			10,000,000
Net asset value per share	$	60.52		$	47.03		$	59.75		$	117.60		$	62.52		$	171.23

^(a) Securities on loan with market values of $150,109,714, $113,624,799, $192,530,525, $977,625,196, $336,666,434 and $380,426,577, respectively. See Note 5.

See notes to financial statements.

112 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations

iSHARES^® TRUST

Year Ended March 31, 2004

	iShares Russell
	1000 Index Fund			1000 Growth Index Fund			1000 Value Index Fund			2000 Index Fund			2000 Growth Index Fund			2000 Value Index Fund
NET INVESTMENT INCOME
Dividendsa	$	28,825,237		$	13,051,054		$	45,911,353		$	44,574,492		$	7,120,843		$	22,666,725
Interestb		18,477			8,070			18,555			28,679			8,657			11,706
Securities lending incomeb		114,202			79,207			154,079			1,663,146			613,015			408,039
Total investment income		28,957,916			13,138,331			46,083,987			46,266,317			7,742,515			23,086,470
EXPENSES (Note 2)
Advisory fees		2,447,487			2,452,127			3,698,281			7,225,737			3,065,713			3,052,040
Total expenses		2,447,487			2,452,127			3,698,281			7,225,737			3,065,713			3,052,040
Net investment income		26,510,429			10,686,204			42,385,706			39,040,580			4,676,802			20,034,430
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments		(23,357,490	)		(31,406,377	)		(30,973,819	)		(114,662,656	)		(13,665,538	)		(54,487,793	)
In-kind redemptions		37,995,338			98,428,657			56,512,156			784,013,201			163,652,170			101,243,131
Net realized gain		14,637,848			67,022,280			25,538,337			669,350,545			149,986,632			46,755,338
Net change in unrealized appreciation (depreciation) on investments		379,621,704			213,647,513			467,387,566			829,503,380			347,740,328			465,072,429
Net realized and unrealized gain		394,259,552			280,669,793			492,925,903			1,498,853,925			497,726,960			511,827,767
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	420,769,981		$	291,355,997		$	535,311,609		$	1,537,894,505		$	502,403,762		$	531,862,197

^a Net of foreign withholding tax of $2,521, $1,578, $3,570, $16,416, $8,870 and $2,013, respectively.

^b Includes income earned from affiliates of the Funds’ investment advisor. See Note 2.

See notes to financial statements.

FINANCIAL STATEMENTS 113

Statements of Changes in Net Assets

iSHARES^® TRUST

	iShares Russell 1000 Index Fund						iShares Russell 1000 Growth Index Fund						iShares Russell 1000 Value Index Fund
	For the year ended March 31, 2004			For the year ended March 31, 2003			For the year ended March 31, 2004			For the year ended March 31, 2003			For the year ended March 31, 2004			For the year ended March 31, 2003
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	26,510,429		$	10,131,461		$	10,686,204		$	5,522,966		$	42,385,706		$	20,522,071
Net realized gain (loss)		14,637,848			(8,904,053	)		67,022,280			(52,737,393	)		5,538,337			(11,931,797	)
Net change in unrealized appreciation (depreciation)		379,621,704			(135,204,351	)		213,647,513			(118,280,472	)		467,387,566			(229,897,032	)
Net increase (decrease) in net assets resulting from operations		420,769,981			(133,976,943	)		291,355,997			(165,494,899	)		535,311,609			(221,306,758	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(26,538,768	)		(9,653,259	)		(10,946,081	)		(5,153,751	)		(42,169,628	)		(19,872,163	)
Total distributions to shareholders		(26,538,768	)		(9,653,259	)		(10,946,081	)		(5,153,751	)		(42,169,628	)		(19,872,163	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		941,843,037			689,592,834			1,078,457,091			714,075,496			1,514,282,555			811,052,416
Cost of shares redeemed		(170,428,560	)		(46,393,981	)		(628,071,088	)		(111,541,285	)		(284,863,915	)		(277,129,955	)
Net increase in net assets from capital share transactions		771,414,477			643,198,853			450,386,003			602,534,211			1,229,418,640			533,922,461
INCREASE IN NET ASSETS		1,165,645,690			499,568,651			730,795,919			431,885,561			1,722,560,621			292,743,540
NET ASSETS:
Beginning of year		919,139,784			419,571,133			915,350,405			483,464,844			984,132,689			691,389,149
End of year	$	2,084,785,474		$	919,139,784		$	1,646,146,324		$	915,350,405		$	2,706,693,310		$	984,132,689
Undistributed net investment income included in net assets at end of year	$	345,870		$	658,541		$	223,093		$	489,512		$	551,202		$	992,271
SHARES ISSUED AND REDEEMED:
Shares sold		17,300,000			14,450,000			24,200,000			18,650,000			27,850,000			16,450,000
Shares redeemed		(3,200,000	)		(1,000,000	)		(14,650,000	)		(2,950,000	)		(5,200,000	)		(5,800,000	)
Net increase in shares outstanding		14,100,000			13,450,000			9,550,000			15,700,000			22,650,000			10,650,000

See notes to financial statements.

114 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^® TRUST

	iShares Russell 2000 Index Fund						iShares Russell 2000 Growth Index Fund						iShares Russell 2000 Value Index Fund
	For the year ended March 31, 2004			For the year Ended March 31, 2003			For the year ended March 31, 2004			For the year ended March 31, 2003			For the year ended March 31, 2004			For the year ended March 31, 2003
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	39,040,580		$	31,519,359		$	4,676,802		$	2,766,819		$	20,034,430		$	15,284,000
Net realized gain (loss)		669,350,545			(96,668,304	)		149,986,632			(62,734,595	)		46,755,338			34,763,604
Net change in unrealized appreciation (depreciation)		829,503,380			(830,329,197	)		347,740,328			(111,451,892	)		465,072,429			(296,936,174	)
Net increase (decrease) in net assets resulting from operations		1,537,894,505			(895,478,142	)		502,403,762			(171,419,668	)		531,862,197			(246,888,570	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(34,114,306	)		(31,917,146	)		(4,824,638	)		(2,341,216	)		(17,500,341	)		(15,375,184	)
Return of capital		(2,762,127	)		—			—			—			(1,339,753	)		—
Total distributions to shareholders		(36,876,433	)		(31,917,146	)		(4,824,638	)		(2,341,216	)		(18,840,094	)		(15,375,184	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		6,040,001,177			3,038,486,032			840,342,923			455,490,755			790,847,829			688,091,765
Cost of shares redeemed		(3,967,162,112	)		(2,843,445,360	)		(453,739,731	)		(79,955,731	)		(227,044,459	)		(628,348,346	)
Net increase in net assets from capital share transactions		2,072,839,065			195,040,672			386,603,192			375,535,024			563,803,370			59,743,419
INCREASE (DECREASE) IN NET ASSETS		3,573,857,137			(732,354,616	)		884,182,316			201,774,140			1,076,825,473			(202,520,335	)
NET ASSETS:
Beginning of year		1,706,545,158			2,438,899,774			638,185,713			436,411,573			635,447,395			837,967,730
End of year	$	5,280,402,295		$	1,706,545,158		$	1,522,368,029		$	638,185,713		$	1,712,272,868		$	635,447,395
Undistributed net investment income included in net assets at end of year	$	4,383,622		$	1,094,597		$	417,892		$	455,874		$	2,421,577		$	805,421
SHARES ISSUED AND REDEEMED:
Shares sold		58,850,000			34,900,000			15,500,000			10,750,000			5,500,000			5,150,000
Shares redeemed		(37,450,000	)		(35,600,000	)		(7,700,000	)		(1,900,000	)		(1,500,000	)		(5,100,000	)
Net increase (decrease) in shares outstanding		21,400,000			(700,000	)		7,800,000			8,850,000			4,000,000			50,000

See notes to financial statements.

FINANCIAL STATEMENTS 115

Financial Highlights

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares Russell 1000 Index Fund
	Year ended Mar. 31, 2004			Year ended Mar. 31, 2003			Year ended Mar. 31, 2002			Period from May 15, 20001 to Mar. 31, 2001
Net asset value, beginning of period	$	45.17		$	60.81		$	61.10		$	76.78
Income from investment operations:
Net investment income		0.88			0.72			0.70			0.64
Net realized and unrealized gain (loss)		15.36			(15.64	)		(0.30	)		(15.71	)
Total from investment operations		16.24			(14.92	)		0.40			(15.07	)
Less distributions from:
Net investment income		(0.89	)		(0.72	)		(0.69	)		(0.61	)
Net realized gain		—			—			—			(0.00	)5
Total distributions		(0.89	)		(0.72	)		(0.69	)		(0.61	)
Net asset value, end of period	$	60.52		$	45.17		$	60.81		$	61.10
Total return		36.12	%		(24.59	)%		0.68	%		(19.75	)%2
Ratios/Supplemental data:
Net assets, end of period (000s)	$	2,084,785		$	919,140		$	419,571		$	207,723
Ratio of expenses to average net assets3		0.15	%		0.15	%		0.15	%		0.15	%
Ratio of net investment income to average net assets3		1.62	%		1.66	%		1.23	%		1.01	%
Portfolio turnover rate4		5	%		5	%		8	%		9	%

¹ Commencement of operations.

² Not annualized.

³ Annualized for periods of less than one year.

⁴ Excludes portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

⁵ Rounds to less than $0.01.

See notes to financial statements.

116 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares Russell 1000 Growth Index Fund
	Year ended Mar. 31, 2004			Year ended Mar. 31, 2003			Year ended Mar. 31, 2002			Period from May 22, 20001 to Mar. 31, 2001
Net asset value, beginning of period	$	35.97		$	49.59		$	50.99		$	79.30
Income from investment operations:
Net investment income		0.37			0.31			0.23			0.14
Net realized and unrealized gain (loss)		11.07			(13.63	)		(1.41	)		(28.20	)
Total from investment operations		11.44			(13.32	)		(1.18	)		(28.06	)
Less distributions from:
Net investment income		(0.38	)		(0.30	)		(0.22	)		(0.14	)
Net realized gain		—			—			—			(0.11	)
Total distributions		(0.38	)		(0.30	)		(0.22	)		(0.25	)
Net asset value, end of period	$	47.03		$	35.97		$	49.59		$	50.99
Total return		31.88	%		(26.87	)%		(2.30	)%		(35.47	)%2
Ratios/Supplemental data:
Net assets, end of period (000s)	$	1,646,146		$	915,350		$	483,465		$	209,078
Ratio of expenses to average net assets3		0.20	%		0.20	%		0.20	%		0.20	%
Ratio of net investment income to average net assets3		0.87	%		0.92	%		0.52	%		0.26	%
Portfolio turnover rate4		9	%		13	%		22	%		11	%

¹ Commencement of operations.

² Not annualized.

³ Annualized for periods of less than one year.

⁴ Excludes portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 117

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares Russell 1000 Value Index Fund
	Year ended Mar. 31, 2004			Year ended Mar. 31, 2003			Year ended Mar. 31, 2002			Period From May 22, 20001 to Mar. 31, 2001
Net asset value, beginning of period	$	43.45		$	57.62		$	56.18		$	56.10
Income from investment operations:
Net investment income		1.15			1.02			0.90			0.66
Net realized and unrealized gain (loss)		16.32			(14.18	)		1.43			0.04
Total from investment operations		17.47			(13.16	)		2.33			0.70
Less distributions from:
Net investment income		(1.17	)		(1.01	)		(0.89	)		(0.62	)
Total distributions		(1.17	)		(1.01	)		(0.89	)		(0.62	)
Net asset value, end of period	$	59.75		$	43.45		$	57.62		$	56.18
Total return		40.48	%		(22.95	)%		4.22	%		1.22	%2
Ratios/Supplemental data:
Net assets, end of period (000s)	$	2,706,693		$	984,133		$	691,389		$	191,005
Ratio of expenses to average net assets3		0.20	%		0.20	%		0.20	%		0.20	%
Ratio of net investment income to average net assets3		2.29	%		2.29	%		1.82	%		1.64	%
Portfolio turnover rate4		12	%		20	%		16	%		9	%

¹ Commencement of operations.

² Not annualized.

³ Annualized for periods of less than one year.

⁴ Excludes portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.

118 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares Russell 2000 Index Fund
	Year ended Mar. 31, 2004			Year ended Mar. 31, 2003			Year ended Mar. 31, 2002			Period from May 22, 20001 to Mar. 31, 2001
Net asset value, beginning of period	$	72.62		$	100.78		$	89.80		$	94.33
Income from investment operations:
Net investment income		1.00			1.02			1.04			0.98
Net realized and unrealized gain (loss)		44.95			(28.15	)		10.90			(4.47	)
Total from investment operations		45.95			(27.13	)		11.94			(3.49	)
Less distributions from:
Net investment income		(0.90	)		(1.03	)		(0.96	)		(0.88	)
Net realized gain		—			—			—			(0.16	)
Return of capital		(0.07	)		—			—			—
Total distributions		(0.97	)		(1.03	)		(0.96	)		(1.04	)
Net asset value, end of period	$	117.60		$	72.62		$	100.78		$	89.80
Total return		63.44	%		(26.99	)%		13.40	%		(3.77	)%2
Ratios/Supplemental data:
Net assets, end of period (000s)	$	5,280,402		$	1,706,545		$	2,438,900		$	713,939
Ratio of expenses to average net assets3		0.20	%		0.20	%		0.20	%		0.20	%
Ratio of net investment income to average net assets3		1.08	%		1.28	%		1.25	%		1.39	%
Portfolio turnover rate4		26	%		30	%		20	%		39	%

¹ Commencement of operations.

² Not annualized.

³ Annualized for periods of less than one year.

⁴ Excludes portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 119

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares Russell 2000 Growth Index Fund
	Year ended Mar. 31, 2004			Year ended Mar. 31, 2003			Year ended Mar. 31, 2002			Period from Jul. 24, 20001 To Mar. 31, 2001
Net asset value, beginning of period	$	38.56		$	56.68		$	54.48		$	81.36
Income from investment operations:
Net investment income		0.20			0.21			0.11			0.05
Net realized and unrealized gain (loss)		23.97			(18.14	)		2.19			(26.85	)
Total from investment operations		24.17			(17.93	)		2.30			(26.80	)
Less distributions from:
Net investment income		(0.21	)		(0.19	)		(0.10	)		(0.04	)
Net realized gain		—			—			—			(0.04	)
Total distributions		(0.21	)		(0.19	)		(0.10	)		(0.08	)
Net asset value, end of period	$	62.52		$	38.56		$	56.68		$	54.48
Total return		62.76	%		(31.65	)%		4.24	%		(32.96	)%2
Ratios/Supplemental data:
Net assets, end of period (000s)	$	1,522,368		$	638,186		$	436,412		$	155,258
Ratio of expenses to average net assets3		0.25	%		0.25	%		0.25	%		0.25	%
Ratio of net investment income to average net assets3		0.38	%		0.58	%		0.22	%		0.14	%
Portfolio turnover rate4		37	%		41	%		28	%		9	%

¹ Commencement of operations.

² Not annualized.

³ Annualized for periods of less than one year.

⁴ Excludes portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.

120 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares Russell 2000 Value Index Fund
	Year ended Mar. 31, 2004			Year ended Mar. 31, 2003			Year ended Mar. 31, 2002			Period From Jul. 24, 20001 to Mar. 31, 2001
Net asset value, beginning of period	$	105.91		$	140.83		$	116.50		$	103.35
Income from investment operations:
Net investment income		2.22			2.23			2.30			1.49
Net realized and unrealized gain (loss)		65.25			(34.90	)		24.16			12.97
Total from investment operations		67.47			(32.67	)		26.46			14.46
Less distributions from:
Net investment income		(2.00	)		(2.25	)		(2.13	)		(1.28	)
Net realized gain		—			—			—			(0.03	)
Return of capital		(0.15	)		—			—			—
Total distributions		(2.15	)		(2.25	)		(2.13	)		(1.31	)
Net asset value, end of period	$	171.23		$	105.91		$	140.83		$	116.50
Total return		64.00	%		(23.35	)%		23.05	%		14.05	%2
Ratios/Supplemental data:
Net assets, end of period (000s)	$	1,712,273		$	635,447		$	837,968		$	273,763
Ratio of expenses to average net assets3		0.25	%		0.25	%		0.25	%		0.25	%
Ratio of net investment income to average net assets3		1.64	%		1.85	%		2.07	%		2.40	%
Portfolio turnover rate4		16	%		45	%		26	%		9	%

¹ Commencement of operations.

² Not annualized.

³ Annualized for periods of less than one year.

⁴ Excludes portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 121

Notes to the Financial Statements

iSHARES^® TRUST

1. SIGNIFICANT ACCOUNTING POLICIES

iShares Trust (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 statutory trust pursuant to an Agreement and Declaration of Trust dated December 16, 1999. As of March 31, 2004, the Trust offered 61 investment portfolios or funds.

These financial statements relate only to the iShares Russell 1000, iShares Russell 1000 Growth, iShares Russell 1000 Value, iShares Russell 2000, iShares Russell 2000 Growth, and iShares Russell 2000 Value Index Funds (each a “Fund”, collectively the “Funds”).

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 achieve each Fund’s investment objective. Each of the Funds is classified as a diversified fund under the 1940 Act, except for the iShares Russell 1000 Growth Index Fund, which is classified as a non-diversified fund. Non-diversified funds generally hold stocks of fewer companies 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 affecting these companies.

Under the Trust’s organizational documents, the Funds’ officers and trustees are indemnified against certain liabilities that may arise out of the performance of their duties to the Funds. Additionally, in the normal course of business, the Funds enter into contracts with service providers that contain general indemnification clauses. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred.

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 for which the primary market is the National Association of Securities Dealers Automated Quotations National Market System (“NASDAQ”) are valued at the NASDAQ Official Closing Price. Securities not listed on an exchange or national securities market, or securities for which there were no sales prices, are valued at the latest quoted bid prices. U.S. Government obligations are valued at the latest quoted bid price. Short-term investments are valued at amortized cost, which approximates market value. Mutual fund shares are valued at net asset value. Any securities, including restricted securities or other assets for which market quotations are not readily available, or for which a significant event has occurred since the time of the most recent market quotation, are valued in accordance with fair value pricing 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.

122 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to the Financial Statements (Continued)

iSHARES^® TRUST

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.

At March 31, 2004, the tax year-end of the Funds, the components of distributable earnings (accumulated losses) on a tax basis were as follows:

iShares Index Fund	Undistributed Ordinary Income		Unrealized Appreciation		Capital and Other Losses			Distributable Earnings (Accumulated Losses)
Russell 1000	$	159,662	$	174,392,527	$	(27,770,392	)	$	146,781,797
Russell 1000 Growth		194,878		19,491,275		(111,926,226	)		(92,240,073	)
Russell 1000 Value		191,453		202,608,745		(35,404,934	)		167,395,264
Russell 2000		—		13,857,566		(221,569,667	)		(207,712,101	)
Russell 2000 Growth		—		207,816,473		(90,936,685	)		116,879,788
Russell 2000 Value		—		252,535,015		(68,930,316	)		183,604,699

The differences between the components of distributable earnings (accumulated losses) on a tax basis and the amounts reflected in the Statements of Assets and Liabilities are primarily due to differing treatments of wash sales.

For the years ended March 31, 2004 and March 31, 2003, the tax characterization of distributions paid for each Fund was equal to the book characterization of distributions paid. The total distributions and distributions per share are disclosed in the accompanying Statements of Changes in Net Assets and the Financial Highlights for all Funds.

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 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 year ended March 31, 2004.

From November 1, 2003 to March 31, 2004, the iShares Russell 1000 Growth and iShares Russell 2000 Index Funds incurred net realized capital losses totalling $191,796 and $2,930,373, respectively. As permitted by tax regulations, the Funds have elected to defer those losses and treat them as arising in the year ending March 31, 2005.

NOTES TO THE FINANCIAL STATEMENTS 123

Notes to the Financial Statements (Continued)

iSHARES^® TRUST

The Funds had tax basis net capital loss carryforwards at March 31, 2004, the tax year-end of the Funds, as follows:

iShares Index Fund	Expiring 2009		Expiring 2010		Expiring 2011		Expiring 2012		Total
Russell 1000	$	—	$	12,325,552	$	9,766,316	$	5,678,524	$	27,770,392
Russell 1000 Growth		—		20,107,067		68,492,707		23,134,656		111,734,430
Russell 1000 Value		99,151		5,765,240		15,563,290		13,977,221		35,404,902
Russell 2000		—		47,692,929		112,740,686		58,205,679		218,639,294
Russell 2000 Growth		—		14,797,300		71,115,684		5,023,701		90,936,685
Russell 2000 Value		—		6,847,139		18,124,608		43,958,569		68,930,316

Net capital loss carryforwards may be applied against any net realized taxable gains in each succeeding year, or until their respective expiration dates, whichever occurs first.

For the year ended March 31, 2004, the Funds realized net capital gains or losses resulting from in-kind redemptions of large blocks of 50,000 or more shares or multiples thereof (“Creation Units”). Because such gains or losses are not taxable to the Funds, and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gains or losses to paid-in-capital at the end of the Funds’ tax year. These reclassifications have no effect on net assets or net asset values per share. The in-kind gains or losses for the year ended March 31, 2004 are disclosed in the Funds’ Statements of Operations.

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 an investment by the Fund, collateralized by securities, which are delivered to the Funds’ custodian or to an agent bank under a tri-party agreement. 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 Funds did not enter into any repurchase agreements at March 31, 2004; however, cash collateral for securities on loan was invested in repurchase agreements at March 31, 2004. For further information, see Note 5, below.

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 the Investment Advisory 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 execution of portfolio transactions, distribution fees and extraordinary expenses. Expenses related to the organization and initial registration of the Trust were borne by BGFA.

124 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to the Financial Statements (Continued)

iSHARES^® TRUST

For its investment advisory services to each Fund, BGFA is entitled to an annual advisory fee based on the average daily net assets of each Fund as follows:

iShares Index Fund	Advisory Fee
Russell 1000	0.15	%
Russell 1000 Growth	0.20
Russell 1000 Value	0.20
Russell 2000	0.20
Russell 2000 Growth	0.25
Russell 2000 Value	0.25

Investors Bank & Trust Company (“Investors Bank”) serves as administrator, custodian and transfer agent for the Trust. As compensation for its services, Investors Bank 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.

Barclays Global Investors, N.A. (“BGI”) serves as securities lending agent for the Trust. BGI is an affiliate of BGFA, the Funds’ investment advisor. As securities lending agent, BGI receives as fees, a share of the income earned on investment of the cash collateral received for the loan of securities. For the year ended March 31, 2004, BGI earned securities lending agent fees as follows:

iShares Index Fund	Securities Lending Agent Fees
Russell 1000	$	117,771
Russell 1000 Growth		79,727
Russell 1000 Value		155,099
Russell 2000		1,669,978
Russell 2000 Growth		615,927
Russell 2000 Value		410,432

SEI Investments Distribution Company (“SEI”) serves as each Fund’s underwriter and distributor of the shares of each Fund, pursuant to a Distribution Agreement with the Trust. SEI does not receive a fee from the Funds for its distribution services.

Barclays Global Investors Services (“BGIS”), a subsidiary of BGI, may serve as a broker-dealer for the Funds. For the year ended March 31, 2004, BGIS did not receive any brokerage commissions from the Funds.

Pursuant to Rule 17a-7 of the 1940 Act, the Funds executed cross trades for the year ended March 31, 2004. Cross trading is the buying or selling of portfolio securities between funds to which BGFA (or an affiliate) serves as investment advisor. The Board reviewed all such transactions executed during the first three quarters of the fiscal year and concluded that they were in compliance with the requirements and restrictions set forth by Rule 17a-7. The Board is scheduled at its next meeting to review all such transactions executed during the fourth quarter of the fiscal year.

Pursuant to an exemptive order issued by the U.S. Securities and Exchange Commission, each Fund may invest in the Institutional Shares of the Institutional Money Market Fund (“IMMF”) and Prime Money Market Fund (“PMMF”) of Barclays Global Investors Funds. The IMMF and PMMF are feeder funds in a master/feeder fund structure that invest substantially all of their assets in the Money Market Master Portfolio and Prime Money Market Master Portfolio (collectively, the “Master Portfolios”), respectively, which are managed by BGFA, the Funds’ investment advisor. The IMMF and PMMF are open-end money market funds available only to institutional investors, including other investment

NOTES TO THE FINANCIAL STATEMENTS 125

Notes to the Financial Statements (Continued)

iSHARES^® TRUST

companies managed by BGFA. The IMMF and PMMF seek a high level of income consistent with liquidity and the preservation of capital. While the IMMF and PMMF do not directly charge an advisory fee, the Master Portfolios in which they invest do charge an advisory fee. Income distributions from the IMMF and PMMF are declared daily and paid monthly from net investment income. Income distributions earned by the Funds from temporary cash investments or from investment of securities lending collateral are recorded as either interest income or securities lending income, respectively, in the accompanying Statements of Operations.

Transactions in shares of issuers affiliated with BGFA for the year ended March 31, 2004, including interest income were as follows:

Name of Issuer	Number of Shares Held Beginning of Year (in 000s)	Gross Additions (in 000s)	Gross Reductions (in 000s)	Number of Shares Held End Of Year (in 000s)	Value at End of Year		Interest Income
iShares Russell 1000 Index Fund IMMF	932	335,617	328,054	8,495	$	8,495,314	$	14,762
iShares Russell 1000 Growth Index Fund IMMF	500	184,675	180,989	4,186		4,186,347		8,070
iShares Russell 1000 Value Index Fund IMMF	1,089	421,479	407,602	14,966		14,965,580		18,555
iShares Russell 2000 Index Fund IMMF	1,763	682,912	672,610	12,065		12,064,944		28,679
iShares Russell 2000 Growth Index Fund IMMF	523	198,746	197,621	1,648		1,647,821		8,657
iShares Russell 2000 Value Index Fund IMMF	300	272,815	266,990	6,125		6,124,573		11,706

Due to the nature of the structure of the joint account used for the investment of the collateral for securities lending, the transactions reported for the IMMF do not include activity related to the Funds’ holdings of this issuer for securities lending purposes. In addition to the transactions disclosed above, the Funds also invested in the PMMF for purposes of investing collateral from securities lending.

As of March 31, 2004, certain trustees and officers of the Trust are also officers of BGI.

3. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the year ended March 31, 2004 were as follows:

iShares Index Fund	Purchases		Sales
Russell 1000	$	82,833,829	$	82,966,703
Russell 1000 Growth		116,828,053		117,452,338
Russell 1000 Value		221,939,295		221,037,998
Russell 2000		932,976,222		930,571,509
Russell 2000 Growth		448,278,043		448,261,038
Russell 2000 Value		196,159,507		195,415,733

126 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to the Financial Statements (Continued)

iSHARES^® TRUST

In-kind transactions (see Note 4) for the year ended March 31, 2004 were as follows:

iShares Index Fund	In-kind Purchases		In-kind Sales
Russell 1000	$	940,696,015	$	170,161,740
Russell 1000 Growth		1,077,727,204		627,552,179
Russell 1000 Value		1,511,534,131		284,342,135
Russell 2000		6,033,139,059		3,962,414,021
Russell 2000 Growth		839,387,387		453,051,585
Russell 2000 Value		974,733,345		411,370,390

At March 31, 2004, the aggregate unrealized appreciation and depreciation based on cost for federal income tax purposes were as follows:

iShares Index Fund	Tax Cost		Unrealized Appreciation		Unrealized Depreciation			Net Unrealized Appreciation
Russell 1000	$	2,071,696,184	$	234,951,512	$	(60,558,985	)	$	174,392,527
Russell 1000 Growth		1,746,623,184		88,886,803		(69,395,528	)		19,491,275
Russell 1000 Value		2,715,088,675		259,724,886		(57,116,141	)		202,608,745
Russell 2000		6,292,167,311		345,842,407		(331,984,839	)		13,857,568
Russell 2000 Growth		1,666,210,793		266,509,141		(58,692,668	)		207,816,473
Russell 2000 Value		1,858,873,660		295,198,005		(42,662,990	)		252,535,015

4. CAPITAL SHARE TRANSACTIONS

At March 31, 2004, there were an unlimited number of no par value capital shares of beneficial interest authorized. Capital shares are issued and redeemed by each Fund only in Creation Units or multiples thereof. Except when aggregated in Creation Units, shares of each Fund are not redeemable. Transactions in capital shares for each Fund are disclosed in detail in the Statements of Changes in Net Assets.

The consideration for the 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.

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, which consists of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. Government. The initial collateral received is required to have a value of at least 102% of the market value of the loaned securities for securities denominated in U.S. dollars and a value of at least 105% for all other securities. The collateral is maintained thereafter, at a value equal to at least 100% of the current market value of the securities on loan. The risks to a Fund of securities lending are that the borrower may not provide additional collateral when required, or return the securities when due.

As of March 31, 2004, the Funds had loaned securities which were collateralized by cash. The cash collateral received was invested in a joint account with other funds managed by BGFA, which invests in securities with remaining maturities of 397 days or less, repurchase agreements and money market mutual funds including money market funds managed by BGFA. Repurchase agreements held in the joint account are fully collateralized by U.S. Government securities. Income from the joint account is allocated daily to each Fund, based on each Fund’s portion of the total cash collateral received. The market value of the securities on loan at March 31, 2004 and the value of the related collateral are disclosed in the Statements of Assets and Liabilities. Securities lending income is presented net of broker rebates and fees paid to BGI.

NOTES TO THE FINANCIAL STATEMENTS 127

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Trustees of

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 Russell Series Funds (the “Funds”), as listed on the table of contents, at March 31, 2004, the results of each of their operations for the year then ended, and the changes in each of their net assets for each of the two years in the period then ended and their financial highlights for each of the periods presented, 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 the standards of the Public Company Accounting Oversight Board (United States), 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, 2004 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California

May 21, 2004

128 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Tax Information (Unaudited)

iSHARES^® TRUST

For corporate shareholders, a portion of the income dividends paid by the Funds during the year ended March 31, 2004 qualified for the dividends-received deduction:

iShares Index Fund	Dividends- Received Deduction
Russell 1000	100.00	%
Russell 1000 Growth	100.00
Russell 1000 Value	99.98
Russell 2000	79.83
Russell 2000 Growth	99.55
Russell 2000 Value	76.17

Qualified dividend income received by the Funds through March 31, 2004 that qualified for a reduced tax rate pursuant to the Jobs and Growth Tax Relief Reconciliation Act of 2003 are as follows:

iShares Index Fund	Qualified Dividend Income
Russell 1000	$	25,449,196
Russell 1000 Growth		11,880,439
Russell 1000 Value		38,756,193
Russell 2000		23,415,760
Russell 2000 Growth		4,522,953
Russell 2000 Value		11,515,758

TAX INFORMATION 129

Supplemental Information (Unaudited)

iSHARES^® TRUST

The tables that follow present information about the differences between the daily market price on secondary markets for shares of an 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. The “Market Price” of each iShares Fund generally is determined using the midpoint between the highest bid and the lowest offer on the stock exchange on which the shares of such Fund is listed for trading, as of the time that the Fund’s NAV is calculated. Each Fund’s Market Price may be at, above or below its NAV. The NAV of each Fund will fluctuate with changes in the market value of its portfolio holdings. The Market 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 (expressed as a percentage) between the NAV and Market Price of a Fund on a given day, generally at the time NAV is calculated. 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.

The following information shows the frequency distributions of premiums and discounts for each of the iShares Funds included in this report. The information shown for each Fund is for each full calendar quarter completed after the inception date of such Fund through March 31, 2004, the date of the most recent calendar quarter end. The specific periods covered for each Fund are disclosed in the table for such Fund.

Each line in the table shows the number of trading days in which the iShares Fund traded within the premium/discount range indicated. The number of trading days in each premium/discount range is also shown as a percentage of the total number of trading days in the period covered by each table. All data presented here represents past performance, which cannot be used to predict future results.

iShares Russell 1000 Index Fund

Period Covered: July 1, 2000 through March 31, 2004

	Number of Days	Percentage of Total Days
Greater than 0.5% and Less than 1.0%	10	1.07	%
Between 0.5% and – 0.5%	908	96.90
Less than – 0.5% and Greater than – 1.0%	13	1.39
Less than – 1.0%	6	0.64
	937	100.00	%

iShares Russell 1000 Growth Index Fund

Period Covered: July 1, 2000 through March 31, 2004

	Number of Days	Percentage of Total Days
Greater than 0.5% and Less than 1.0%	12	1.28	%
Between 0.5% and – 0.5%	901	96.16
Less than – 0.5% and Greater than – 1.0%	17	1.81
Less than – 1.0%	7	0.75
	937	100.00	%

130 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^® TRUST

iShares Russell 1000 Value Index Fund

Period Covered: July 1, 2000 through March 31, 2004

	Number of Days	Percentage of Total Days
Greater than 0.5%	8	0.85	%
Between 0.5% and – 0.5%	916	97.77
Less than – 0.5% and Greater than – 1.0%	8	0.85
Less than – 1.0%	5	0.53
	937	100.00	%

iShares Russell 2000 Index Fund

Period Covered: July 1, 2000 through March 31, 2004

	Number of Days	Percentage of Total Days
Greater than 1.0%	1	0.11	%
Greater than 0.5% and Less than 1.0%	21	2.24
Between 0.5% and – 0.5%	878	93.70
Less than – 0.5% and Greater than – 1.0%	28	2.99
Less than – 1.0%	9	0.96
	937	100.00	%

iShares Russell 2000 Growth Index Fund

Period Covered: October 1, 2000 through March 31, 2004

	Number of Days	Percentage of Total Days
Greater than 1.5%	1	0.11	%
Greater than 1.0% and Less than 1.5%	3	0.34
Greater than 0.5% and Less than 1.0%	36	4.12
Between 0.5% and – 0.5%	793	90.75
Less than – 0.5% and Greater than – 1.0%	28	3.20
Less than – 1.0% and Greater than – 1.5%	10	1.14
Less than – 1.5%	3	0.34
	874	100.00	%

SUPPLEMENTAL INFORMATION 131

Supplemental Information (Unaudited) (Continued)

iSHARES^® TRUST

iShares Russell 2000 Value Index Fund

Period Covered: October 1, 2000 through March 31, 2004

	Number of Days	Percentage of Total Days
Greater than 0.5% and Less than 1.0%	13	1.49	%
Between 0.5% and – 0.5%	837	95.76
Less than – 0.5% and Greater than – 1.0%	17	1.95
Less than – 1.0%	7	0.80
	874	100.00	%

132 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Trustee Information (Unaudited)

iSHARES^® TRUST

The Board of Trustees has responsibility for the overall management and operations of the Trust, including general supervision of the duties performed by BGFA and other service providers. Each Trustee serves until his or her successor is duly elected or appointed and qualified.

iShares Trust, iShares, Inc., Barclays Global Investors Funds and Master Investment Portfolio are considered to be members of the same fund complex, as defined in Form N-1A under the 1940 Act. Each Trustee of iShares Trust also serves as a Director for iShares, Inc. and oversees 87 portfolios within the fund complex. In addition, Lee T. Kranefuss and Richard K. Lyons each serves as a Trustee for Barclays Global Investors Funds and Master Investment Portfolio and oversees 114 portfolios within the fund complex.

Unless otherwise noted in the tables below, the address for each Trustee is 45 Fremont Street, San Francisco, California 94105. Additional information about the Funds’ Trustees may be found in the Funds’ Statement of Additional Information, which is available without charge upon request by calling toll-free 1-800-474-2737.

Interested Trustees

Name and Age	Position(s), Length of Service	Principal Occupation(s) During Past 5 Years	Other Directorships Held
*Lee T. Kranefuss (42)	Trustee, chairman, and President (since June 18, 2003)	Chief Executive Officer of Intermediary Investor and Exchange Traded Products Business of BGI (since 2003) Chief Executive Officer of the individual Investor Business of BGI (1997-2003).	Director (since 18, 2003) of iShares, Inc.; Board of Trustees for Barclays Global Investors Funds and Master Investment Portfolio (since 2001)
*Nathan Most (90)	Trustee (since December 16, 1999)	Consultant to BGI (1998-2002), American Stock Exchange (1996-2000) and the Hong Kong Stock Exchange (1998 to present); Consultant to the Amsterdam Stock Exchange (1997-1998); Consultant to the Pacific Stock Exchange (1997-1998).	Director (since 1996) and President (1996-2002) of iShares, Inc.
*John E. Martinez (42)	Trustee (since December 5, 2003)	Co-CEO of Global Index and Markets Group of BGI (2001-2003); Chairman of Barclays Global Investors Services (2002-2003); CEO of Capital Markets Group of BGI (1996-2001)	Director (since December 5, 2003) of iShares, Inc.; Director (since November 2003) of Barclays Global Investors UK Holdings.

* Lee T. Kranefuss, Nathan Most and John E. Martinez are deemed to be “interested persons” (as defined in the 1940 Act) of the Trust due to their affiliations with BGFA, the Funds’ investment advisor and BGI, the parent company of BGFA.

TRUSTEE INFORMATION 133

Trustee Information (Unaudited) (Continued)

iSHARES^® TRUST

Independent Trustees

Name and Age	Position(s), Length of Service	Principal Occupation(s) During Past 5 Years	Other Directorships Held
John B. Carroll (68)	Trustee (since January 1, 2002)	Retired Vice President of Investment Management (1984-2000) of Verizon Corporation; Advisory Board member of Ibbotson Associates (1992-1998); former Vice Chairman and Executive Committee Member (1994-1998) of the Committee on Investment of Employee Benefit Assets of the Financial Executive Institute.	Director (since 1996) of iShares, Inc.; Trustee and member of the Executive Committee (since 1991) of The Common Fund Institutional Funds, a non-porfit organization; Member of the Board of Managers of JP Morgan Private Equity Funds.
Richard K. Lyons (43)	Trustee (since February 15, 2000)	Professor, University of California, Berkeley: Haas School of Business (since 1993); Consultant for IMF World Bank, Federal Reserve Bank , and Citibank N.A. (since 2000).	Director (since 2001) of iShares, Inc.; Trustee of Master Investment Portfolio and Barclays Global Investors Funds (since 2001); Board of Trustees: Director (Chairman) Matthews Asian Funds since 1995 (oversees 6 portfolios).
George C. Parker (65)	Trustee (since February 15, 2000)	Dean Witter Distinguished Professor of Finance (since 1994); Associate Dean for Academic Affairs, Director of MBA Program, and Professor, Stanford University; Graduate School of Business (1993-2001).	Director (since 2001) of iShares, Inc.; Bailard, Biehl and Kaiser, Inc. (since 1958); California Casualty Group of Insurance Companies (since 1978); Continental Airlines, Inc. (since 1996); Community First Financial Group (since 1995); Dresdner/RCM Mutual Funds (1994-2002); Tyon Ranch Company (since 1999).
W. Allen Reed (56)	Trustee (since January 1, 2002)	President and Chief Executive Officer (since 1994) of General Motors Investment Management Corporation.	Director (since 1996) of iShares, Inc.; Director (since 1994) of General Motors Investment Management Corporation; Director (1995-1998) of Taubman Centers, Inc. (a real estate investment trust); Director (since 1992) of FLIR Systems (an imaging technology company); Director (since 1994) of General Motors Acceptance Corporation; Director (since 1994) of GMAC Insurance Holdings, Inc.; Director (since 1995) of Global Emerging Markets Fund; Director (since 2000) of Temple Inland Industries; Chairman (since 1995) of the Investment Advisory Committee of Howard Hughes Medical Institute.

134 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Trustee Information (Unaudited) (Continued)

iSHARES^® TRUST

Officer

Name and Age	Position(s), Length of Service	Principal Occupation(s) During Past 5 Years	Other Directorships Held
Michael A. Latham (38)	Secretary, Treasurer and Principal Financial Officer (since February 28, 2002)	Chief Operating Officer of the Intermediary Investor and Exchange Traded Products Business of BGI (since 2003). Director of Mutual Fund Delivery in the U.S. Individual Investor Business of BGI (2000-2003); Head of Operations, BGI Europe (1997-2000).	None.

TRUSTEE INFORMATION 135

Notes:

136 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes:

NOTES 137

The iShares^® Family of Funds

The following is a list of iShares Funds being offered, along with their respective exchange trading symbols. Please call iShares at 1-800-iShares (1-800-474-2737) to obtain a prospectus for any iShares fund. The prospectus contains more complete information, including charges, expenses, investment objectives and risk factors which should be carefully considered to determine if the fund(s) are an appropriate investment for you. Read the prospectus(es) carefully before investing. Investing involves risk, including possible loss of principal.

iShares S&P Domestic Index Funds	iShares Russell Index Funds
S&P 1500 (ISI)	Russell 3000 (IWV)
S&P 500 (IVV)	Russell 3000 Growth (IWZ)
S&P 500/BARRA Growth (IVW)	Russell 3000 Value (IWW)
S&P 500/BARRA Value (IVE)	Russell 1000 (IWB)
S&P MidCap 400 (IJH)	Russell 1000 Growth (IWF)
S&P MidCap 400/BARRA Growth (IJK)	Russell 1000 Value (IWD)
S&P MidCap 400/BARRA Value (IJJ)	Russell Midcap (IWR)
S&P SmallCap 600 (IJR)	Russell Midcap Growth (IWP)
S&P SmallCap 600/BARRA Growth (IJT)	Russell Midcap Value (IWS)
S&P SmallCap 600/BARRA Value (IJS)	Russell 2000 (IWM)
S&P 100 (OEF)	Russell 2000 Growth (IWO)
	Russell 2000 Value (IWN)
iShares Sector and Specialty Index Funds
Cohen & Steers Realty Majors (ICF)	iShares NYSE Index Funds
Dow Jones U.S. Basic Materials Sector (IYM)	NYSE 100 (NY)
Dow Jones U.S. Consumer Cyclical Sector (IYC)	NYSE Composite (NYC)
Dow Jones U.S. Consumer Non-Cyclical Sector (IYK)
Dow Jones U.S. Energy Sector (IYE)	iShares International Index Funds
Dow Jones U.S. Financial Sector (IYF)	MSCI Australia (EWA)
Dow Jones U.S. Financial Services (IYG)	MSCI Austria (EWO)
Dow Jones U.S. Healthcare Sector (IYH)	MSCI Belgium (EWK)
Dow Jones U.S. Industrial Sector (IYJ)	MSCI Brazil (EWZ)
Dow Jones U.S. Real Estate (IYR)	MSCI Canada (EWC)
Dow Jones Select Dividend (DVY)	MSCI EAFE (EFA)
Dow Jones U.S. Technology Sector (IYW)	MSCI Emerging Markets (EEM)
Dow Jones U.S. Telecommunications Sector (IYZ)	MSCI EMU (EZU)
Dow Jones U.S. Total Market (IYY)	MSCI France (EWQ)
Dow Jones Transportation Average (IYT)	MSCI Germany (EWG)
Dow Jones U.S. Utilities Sector (IDU)	MSCI Hong Kong (EWH)
Goldman Sachs Natural Resources (IGE)	MSCI Italy (EWI)
Goldman Sachs Networking (IGN)	MSCI Japan (EWJ)
Goldman Sachs Semiconductor (IGW)	MSCI Malaysia (EWM)
Goldman Sachs Software (IGV)	MSCI Mexico (EWW)
Goldman Sachs Technology (IGM)	MSCI Netherlands (EWN)
Nasdaq Biotechnology (IBB)	MSCI Pacific ex-Japan (EPP)
S&P Global Energy Sector (IXC)	MSCI Singapore (EWS)
S&P Global Financials Sector (IXG)	MSCI South Africa (EZA)
S&P Global Healthcare Sector (IXJ)	MSCI South Korea (EWY)
S&P Global Technology Sector (IXN)	MSCI Spain (EWP)
S&P Global Telecommunications Sector (IXP)	MSCI Sweden (EWD)
	MSCI Switzerland (EWL)
iShares Bond Funds	MSCI Taiwan (EWT)
Lehman Aggregate (AGG)	MSCI United Kingdom (EWU)
Lehman TIPS (TIP)	S&P Europe 350 (IEV)
Lehman 1-3 Year Treasury (SHY)	S&P Global 100 (IOO)
Lehman 7-10 Year Treasury (IEF)	S&P Latin America 40 (ILF)
Lehman 20+ Year Treasury (TLT)	S&P/TOPIX 150 (ITF)
GS $ InvesTopTM Corporate (LQD)

An investment in the fund(s) is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.

iShares is a registered trademark of Barclays Global Investors, N.A. The iShares Funds are not sponsored, endorsed or issued by Goldman, Sachs & Co. or Lehman Brothers, nor are they sponsored, endorsed, issued, sold or promoted by Cohen & Steers Capital Management, Inc., Dow Jones & Company, Inc., Morgan Stanley Capital International, The Nasdaq Stock Market. Inc., New York Stock Exchange, Inc., Frank Russell Company, or Standard & Poor’s. None of these companies make any representation regarding the advisability of investing in the iShares Funds. Neither SEI nor BGI, nor any of their affiliates, are affiliated with Goldman, Sachs & Co. or Lehman Brothers. “GS $ InvesTop^™” and “Goldman Sachs^®” are trademarks of Goldman, Sachs & Co.

This advertising section does not constitute part of the 2004 Annual Report.

138 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

The iShares Funds are distributed by SEI Investments Distribution Co. (SEI). Barclays Global Fund Advisors (BGFA) serves as an advisor to the iShares Funds. Barclays Global Investors Services (BGIS) assists in the marketing of the iShares Funds. BGFA and BGIS are subsidiaries of Barclays Global Investors, N.A., a wholly owned subsidiary of Barclays Bank PLC, none of which is affiliated with SEI.

The iShares Funds are not sponsored, endorsed, issued, sold or promoted by Frank Russell Company, nor does this company make any representation regarding the advisability of investing in the iShares Funds.

Investing involves risk, including possible loss of principal.

^©2004 Barclays Global Investors. All rights reserved. iShares is a registered trademark of Barclays Global Investors, N.A. All other trademarks, service-marks or registered trademarks are the property of their respective owners.

A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling toll-free 1 800 474 2737; on the Funds’ website at www.iShares.com; and on the Securities and Exchange Commision’s website at www.sec.gov.

This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current prospectus.

iShares^®Industrial strength investment tools from BARCLAYS GLOBAL INVESTORS

1 800 iSHARES (1 800 474 2737) WWW.iSHARES.com

[GRAPHIC APPEARS HERE]

iShares^®

ITEM 1. Report to Stockholders

2004 ANNUAL REPORT TO SHAREHOLDERS

MARCH 31, 2004

iSHARES RUSSELL 3000 INDEX FUND

iSHARES RUSSELL 3000 GROWTH INDEX FUND

iSHARES RUSSELL 3000 VALUE INDEX FUND

iSHARES RUSSELL MIDCAP INDEX FUND

iSHARES RUSSELL MIDCAP GROWTH INDEX FUND

iSHARES RUSSELL MIDCAP VALUE INDEX FUND

Table of Contents

Shareholder Letter	1
Managers’ Discussion & Analysis	4
Schedules of Investments	8
iShares Russell 3000 Index Fund	8
iShares Russell 3000 Growth Index Fund	47
iShares Russell 3000 Value Index Fund	73
iShares Russell Midcap Index Fund	101
iShares Russell Midcap Growth Index Fund	114
iShares Russell Midcap Value Index Fund	123
Financial Statements	133
Financial Highlights	137
Notes to the Financial Statements	143
Report of Independent Registered Public Accounting Firm	150
Tax Information (Unaudited)	151
Supplemental Information (Unaudited)	152
Trustee Information (Unaudited)	154
iShares Family of Funds	158

To Our Shareholders:

Stock markets generally posted solid gains during the last twelve months, reversing the trend of the past several years. The uncertainty that characterized the first few months of the fiscal year, including war in Iraq and high unemployment levels, diminished as the year progressed. Healthy gross domestic product (GDP) growth in the third and fourth quarters of 2003 contributed to the performance trend, and lower unemployment rates in early 2004 provided additional encouragement. While the performance of the past year has been a welcome relief, there is no guarantee that more challenging conditions will not return.

The iShares^® Funds continue to innovate and expand, offering more tools that help investors tailor their portfolios to achieve diversity and address volatility. For example, the iShares family of funds recently partnered with the New York Stock Exchange (the “NYSE”) and introduced two new funds based on NYSE indexes. The iShares NYSE Composite Index Fund provides broad-based exposure to common stocks, ADRs, real estate investment trusts and tracking stocks listed on the NYSE. The iShares NYSE 100 Index Fund offers exposure to the largest 100 U.S. companies, based on market capitalization, listed on the NYSE. Launched late in 2003, the iShares Dow Jones Select Dividend Index Fund provides investors with exposure to fifty of the highest dividend-yielding securities in the Dow Jones U.S. Total Market Index. The iShares family of funds has also added the iShares Lehman TIPS Bond Fund, which provides the opportunity to gain exposure to inflation-protected government securities.

With the addition of these iShares Funds, investors can achieve even more diversity in their portfolios – and at lower cost, since iShares Fund fees are, on average, about half those of actively managed funds.¹ With more than 85 different funds in the iShares family of funds to choose from, investors have the ability to build a diverse portfolio that covers a wide range of market segments with various capitalizations and sectors, as well as value and growth, international and fixed income securities. That is important because market segments do not tend to move in tandem, particularly in volatile markets. Economic factors, including inflation, interest rate levels, currency valuations or the price of oil, as well as the normal pace of the economic cycle, all may result in one market segment outperforming another.

As market conditions change, we encourage you to talk with your financial advisor about what blend of investments or asset allocation can best help you meet your financial goals. We will continue to work closely with the financial advisor community to introduce innovative strategies and structures for their clients’ portfolios. To learn more about the iShares Funds, please visit our web site, www.iShares.com.

Regardless of market conditions, a sound, disciplined investing plan is essential. Such a plan should be grounded in key concepts: such as keeping the costs associated with investing as low as possible, managing risk and maintaining a diversified portfolio. That is why we believe the iShares Funds are an indispensable tool for investors. And that is also why more and more investors have recognized the benefits of the iShares Funds. Assets under management for the iShares family of funds continue to grow, and, as of March 31, 2004, had reached $72.8 billion.

On behalf of the iShares family of funds, we thank you for making the iShares Funds a part of your portfolio. We look forward to meeting your investment needs in the year ahead.

/s/ Lee T. Kranefuss

Lee T. Kranefuss

President and Chairman of the Board of Trustees

iShares Trust

¹ Morningstar Principia, BGI analysis 3/04.

SHAREHOLDER LETTER 1

The iShares Funds are distributed by SEI Investments Distribution Co. (SEI). Barclays Global Fund Advisors (BGFA) serves as an advisor to the iShares Funds. Barclays Global Investors Services (BGIS) assists in the marketing of the iShares Funds. BGFA and BGIS are subsidiaries of Barclays Global Investors, N.A., none of which is affiliated with SEI.

To determine if the fund(s) are an appropriate investment for you, carefully consider the funds’ investment objectives, risk factors and charges and expenses before investing. This and other information can be found in the funds’ prospectuses, which may be obtained by calling 1-800-ishares or by visiting www.iShares.com. Read the prospectus carefully before investing.

There are risks involved with investing, including possible loss of principal. Diversification may not protect against market risk. An investment in the Funds is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The annual management fees of the iShares Funds may be substantially less than those of most mutual funds. iShares transactions will result in brokerage commissions, but the savings from lower annual fees may help offset these costs.

iShares is a registered trademark of Barclays Global Investors, N.A. The iShares Funds are not sponsored, endorsed, or issued by Lehman Brothers, nor are they sponsored, endorsed, issued, sold or promoted by Dow Jones & Company, Inc. or the New York Stock Exchange, Inc. None of these companies make any representation regarding the advisability of investing in the iShares Funds. Neither SEI nor BGI, nor any of their affiliates, are affiliated with the companies listed above.

This advertising section does not constitute part of the 2004 Annual Report.

2 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

THIS PAGE INTENTIONALLY LEFT BLANK.

3

Managers’ Discussion & Analysis

iSHARES^® RUSSELL 3000 INDEX FUNDS

Performance as of 3/31/04

	Average Annual Total Returns												Cumulative Total Returns
	Year Ended 3/31/04						Inception to 3/31/04						Inception to 3/31/04
iSHARES INDEX FUND	NAV		MARKET		INDEX		NAV		MARKET		INDEX		NAV		MARKET		INDEX
Russell 3000	37.86	%	37.81	%	38.19	%	(3.13	)%	(3.14	)%	(2.91	)%	(11.55	)%	(11.58	)%	(10.77	)%
Russell 3000 Growth	33.84	%	33.70	%	34.15	%	(14.25	)%	(14.25	)%	(14.05	)%	(43.28	)%	(43.28	)%	(42.80	)%
Russell 3000 Value	42.04	%	41.87	%	42.45	%	4.94	%	4.94	%	5.20	%	19.48	%	19.45	%	20.56	%

Total returns for the periods since inception are calculated from the inception date of each Fund (5/22/00, 7/24/00 and 7/24/00, respectively). “Average annual total returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative total returns” represent the total change in value of an investment over the periods indicated.

A fund’s per share net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of each Fund, and the market return is based on the market price per share of each Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which the shares of the Funds are listed for trading, as of the time that the Funds’ NAV is calculated. Since fund shares typically do not trade in the secondary market until several days after fund inception, for the period from inception to the first day of secondary market trading in fund shares (5/26/00, 7/28/00 and 7/28/00, respectively), the NAV of the Funds is used as a proxy for secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in each Fund at Market Price and NAV, respectively.

An index is a statistical composite that tracks a specified financial market or sector. Unlike the Funds, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Funds. These expenses negatively impact the performance of each Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. The returns shown in the tables above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Funds will vary with changes in market conditions. Shares of the Funds may be worth more or less than their original cost when they are redeemed or sold in the market. Each Fund’s past performance is no guarantee of future results.

GROWTH OF $10,000 INVESTMENT

SINCE INCEPTION AT NET ASSET VALUE

[GRAPHIC APPEARS HERE]

	iSHARES RUSSELL 3000 INDEX FUND		RUSSELL 3000 INDEX		iSHARES RUSSELL 3000 GROWTH INDEX FUND		RUSSELL 3000 GROWTH INDEX		iSHARES RUSSELL 3000 VALUE INDEX FUND		RUSSELL 3000 VALUE INDEX
5/22/2000	$	10,000.00	$	10,000.00
5/31/2000	$	10,157.42	$	10,158.00
6/30/2000	$	10,451.28	$	10,458.00
7/22/2000					$	10,000.00	$	10,000.00	$	10,000.00	$	10,000.00
7/31/2000	$	10,260.92	$	10,274.00	$	9,564.34	$	9,561.80	$	9,937.06	$	9,924.74
8/31/2000	$	11,026.29	$	11,035.00	$	10,450.25	$	10,436.70	$	10,479.18	$	10,469.61
9/30/2000	$	10,520.52	$	10,536.00	$	9,486.76	$	9,480.83	$	10,557.70	$	10,555.28
10/31/2000	$	10,374.53	$	10,386.00	$	9,020.44	$	9,009.79	$	10,795.82	$	10,795.39
11/30/2000	$	9,419.68	$	9,429.00	$	7,671.02	$	7,661.09	$	10,402.78	$	10,406.07
12/31/2000	$	9,573.89	$	9,587.00	$	7,468.87	$	7,464.40	$	10,958.22	$	10,965.34
1/31/2001	$	9,900.71	$	9,915.00	$	7,990.80	$	7,986.24	$	11,014.49	$	11,024.92
2/28/2001	$	8,995.37	$	9,009.00	$	6,652.44	$	6,648.87	$	10,724.48	$	10,738.03
3/31/2001	$	8,410.39	$	8,422.00	$	5,938.29	$	5,934.01	$	10,360.15	$	10,372.79
4/30/2001	$	9,082.54	$	9,097.00	$	6,685.32	$	6,682.68	$	10,865.20	$	10,879.49
5/31/2001	$	9,153.84	$	9,170.00	$	6,606.53	$	6,603.16	$	11,106.88	$	11,126.46
6/30/2001	$	8,983.07	$	9,001.00	$	6,474.61	$	6,475.72	$	10,908.25	$	10,928.41
7/31/2001	$	8,833.55	$	8,853.00	$	6,284.87	$	6,286.62	$	10,869.03	$	10,890.16
8/31/2001	$	8,310.89	$	8,330.00	$	5,778.40	$	5,780.55	$	10,459.37	$	10,480.69
9/30/2001	$	7,579.18	$	7,596.00	$	5,177.06	$	5,179.95	$	9,693.80	$	9,713.50
10/31/2001	$	7,736.66	$	7,773.00	$	5,448.72	$	5,465.89	$	9,622.15	$	9,652.31
11/30/2001	$	8,329.95	$	8,371.00	$	5,966.26	$	5,986.24	$	10,189.01	$	10,222.76
12/31/2001	$	8,445.96	$	8,489.00	$	5,977.99	$	5,999.41	$	10,452.60	$	10,490.59
1/31/2002	$	8,339.47	$	8,383.00	$	5,865.31	$	5,886.02	$	10,385.09	$	10,425.55
2/28/2002	$	8,167.75	$	8,212.00	$	5,612.14	$	5,632.33	$	10,402.70	$	10,445.36
3/31/2002	$	8,523.56	$	8,572.00	$	5,822.75	$	5,846.36	$	10,913.73	$	10,961.36
4/30/2002	$	8,076.64	$	8,122.00	$	5,371.24	$	5,393.27	$	10,595.68	$	10,643.48
5/31/2002	$	7,983.25	$	8,027.00	$	5,227.58	$	5,249.27	$	10,616.29	$	10,663.70
6/30/2002	$	7,407.69	$	7,449.00	$	4,746.15	$	4,766.33	$	10,032.63	$	10,081.47
7/31/2002	$	6,822.63	$	6,857.00	$	4,452.64	$	4,471.77	$	9,064.25	$	9,102.56
8/31/2002	$	6,852.08	$	6,889.00	$	4,464.38	$	4,484.30	$	9,121.91	$	9,163.54
9/30/2002	$	6,132.41	$	6,165.00	$	4,009.18	$	4,027.79	$	8,133.63	$	8,170.21
10/31/2002	$	6,618.74	$	6,656.00	$	4,364.96	$	4,386.67	$	8,698.56	$	8,740.50
11/30/2002	$	7,016.17	$	7,059.00	$	4,613.42	$	4,637.15	$	9,248.64	$	9,300.76
12/31/2002	$	6,619.30	$	6,660.00	$	4,295.21	$	4,316.72	$	8,848.32	$	8,897.11
1/31/2003	$	6,456.96	$	6,497.00	$	4,189.08	$	4,210.96	$	8,629.96	$	8,679.13
2/28/2003	$	6,350.09	$	6,390.00	$	4,162.55	$	4,185.70	$	8,393.64	$	8,443.92
3/31/2003	$	6,415.75	$	6,457.00	$	4,238.22	$	4,262.71	$	8,411.32	$	8,463.35
4/30/2003	$	6,937.15	$	6,984.00	$	4,557.19	$	4,583.27	$	9,151.95	$	9,212.35
5/31/2003	$	7,354.01	$	7,406.00	$	4,800.85	$	4,830.31	$	9,763.38	$	9,831.42
6/30/2003	$	7,452.78	$	7,506.00	$	4,867.92	$	4,898.42	$	9,886.69	$	9,957.26
7/31/2003	$	7,621.85	$	7,678.00	$	5,007.00	$	5,037.53	$	10,058.86	$	10,130.52
8/31/2003	$	7,789.56	$	7,848.00	$	5,140.17	$	5,173.04	$	10,229.53	$	10,304.77
9/30/2003	$	7,703.94	$	7,763.00	$	5,078.68	$	5,112.00	$	10,126.58	$	10,202.75
10/31/2003	$	8,167.74	$	8,233.00	$	5,373.59	$	5,410.54	$	10,758.07	$	10,842.46
11/30/2003	$	8,278.55	$	8,346.00	$	5,438.79	$	5,476.15	$	10,923.53	$	11,010.27
12/31/2003	$	8,656.35	$	8,728.00	$	5,612.12	$	5,652.87	$	11,570.09	$	11,666.85
1/31/2004	$	8,835.03	$	8,910.00	$	5,738.35	$	5,781.88	$	11,785.54	$	11,887.26
2/29/2004	$	8,951.86	$	9,030.00	$	5,771.02	$	5,815.11	$	12,034.61	$	12,140.11
3/31/2004	$	8,844.23	$	8,923.00	$	5,672.41	$	5,717.54	$	11,947.24	$	12,055.25

Performance figures assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Funds, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Funds. These expenses negatively impact the performance of each Fund. Each Fund’s past performance is no guarantee of future results.

4 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

FUND ALLOCATION BY SECTOR

(% of Net Assets)

[GRAPHIC APPEARS HERE]

RUSSELL 3000

Auto & Transportation	2.28	%
Consumer Discretionary	14.46	%
Consumer Staples	6.89	%
Financial Services	23.50	%
Health Care	13.65	%
Integrated Oils	3.94	%
Material & Processing	3.89	%
Other Energy	1.82	%
Other Sectors	3.88	%
Producer Durables	4.32	%
Short-Term and Net Other Assets	0.08	%
Technology	14.44	%
Utilities	6.85	%

RUSSELL 3000 GROWTH

Auto & Transportation	1.75	%
Consumer Discretionary	17.89	%
Consumer Staples	8.19	%
Financial Services	11.05	%
Health Care	23.96	%
Materials & Processing	1.62	%
Other Energy	1.38	%
Other Sectors	6.28	%
Producer Durables	3.88	%
Short-Term and Net Other Assets	0.07	%
Technology	22.31	%
Utilities	1.62	%

RUSSELL 3000 VALUE

Auto & Transportation	2.81	%
Consumer Discretionary	11.09	%
Consumer Staples	5.62	%
Financial Services	35.80	%
Health Care	3.49	%
Integrated Oils	7.79	%
Materials & Processing	6.14	%
Other Energy	2.24	%
Other Sectors, Short-Term and Net Other Assets	1.60	%
Producer Durables	4.74	%
Technology	6.69	%
Utilities	11.99	%

The iShares Russell 3000 Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Russell 3000 Index (the “Index”). For the one-year period ended March 31, 2004 (the “reporting period”), the Fund returned 37.86%, while the Index returned 38.19%.

The iShares Russell 3000 Growth Index Fund (the “Growth Fund”) and iShares Russell 3000 Value Index Fund (the “Value Fund”) seek investment results that correspond generally to the price and yield performance, before fees and expenses, of the growth and value components of the Index, as measured by the Russell 3000 Growth Index (the “Growth Index”) and the Russell 3000 Value Index (the “Value Index”), respectively. For the reporting period, the Growth Fund and the Value Fund returned 33.84% and 42.04%, respectively, while the Growth Index returned 34.15% and the Value Index returned 42.45%.

The U.S. stock market staged an impressive rally during the reporting period. The main catalyst for the market’s strong performance was an emerging economic recovery fueled by low interest rates and federal tax cuts. By the third quarter of 2003, economic growth surged to an 8.2% annual rate — the economy’s strongest quarter in nearly 20 years. As a result, corporate profit growth accelerated and investor confidence soared, providing a healthy boost to stock prices.

Although the stock market rally cooled off somewhat in early 2004, all of the major stock indexes posted gains of 30% or more for the reporting period. Small-capitalization stocks, which typically perform best in the early stages of an economic recovery, led the market’s advance, outperforming their mid- and large-capitalization counterparts. Value shares outperformed growth across all market capitalizations during the reporting period. This was especially true among large-capitalization stocks, which make up a large portion of the Index and therefore have a significant impact on Index performance.

Reflecting the broad-based stock market rally, every sector within the Index posted double-digit gains for the reporting period. Technology was the best-performing sector, rebounding sharply after three straight years of declines. Financials, which made up the largest sector weighting in the Index at the end of the reporting period, also posted very strong results. Other leading sectors in the Index included materials and consumer discretionary, both of which are cyclical areas of the market that typically benefit from an economic recovery. Some of the more defensive sectors, such as health care and consumer staples, lagged the overall market.

Nine of the Fund’s ten largest individual holdings posted gains during the reporting period. Leading technology firms Cisco Systems Inc. (1.39% of the net assets of the Fund as of March 31, 2004) and Intel Corp. (1.50% of the net assets of the Fund as of March 31, 2004) climbed 81.59% and 67.08%, respectively. Citigroup Inc. (2.24% of the net assets of the Fund as of March 31, 2004) soared by 50.07%. The lone negative return among the Fund’s top ten holdings came from Johnson & Johnson (1.27% of the net assets of the Fund as of March 31, 2004), which declined 12.36% during the reporting period as several of the company’s pharmaceutical and medical products faced increased competition.

MANAGERS’ DISCUSSION & ANALYSIS 5

Managers’ Discussion & Analysis

iSHARES^® RUSSELL MIDCAP INDEX FUNDS

Performance as of 3/31/04

	Average Annual Total Returns												Cumulative Total Returns
	YEAR ENDED 3/31/04						INCEPTION TO 3/31/04						INCEPTION TO 3/31/04
iSHARES INDEX FUND	NAV		MARKET		INDEX		NAV		MARKET		INDEX		NAV		MARKET		INDEX
Russell Midcap	50.47	%	50.35	%	50.83	%	7.54	%	7.52	%	7.67	%	21.75	%	21.70	%	22.18	%
Russell Midcap Growth	49.25	%	49.15	%	49.63	%	2.16	%	2.14	%	2.40	%	5.95	%	5.90	%	6.64	%
Russell Midcap Value	51.17	%	51.05	%	51.60	%	10.20	%	10.19	%	10.37	%	30.07	%	30.03	%	30.66	%

Total returns for the periods since inception are calculated from the inception date of each Fund (7/17/01). “Average annual total returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative total returns” represent the total change in value of an investment over the periods indicated.

Certain sectors and markets performed exceptionally well based on market conditions during the one-year period. Investors should not expect that such exceptional returns will be repeated.

A fund’s per share net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of each Fund, and the market return is based on the market price per share of each Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which the shares of the Funds are listed for trading, as of the time that the Funds’ NAV is calculated. Since fund shares typically do not trade in the secondary market until several days after fund inception, for the period from inception to the first day of secondary market trading in fund shares (7/20/01), the NAV of each Fund is used as a proxy for secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Funds at Market Price and NAV, respectively.

An index is a statistical composite that tracks a specified financial market or sector. Unlike the Funds, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Funds. These expenses negatively impact the performance of each Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. The returns shown in the tables above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Funds will vary with changes in market conditions. Shares of the Funds may be worth more or less than their original cost when they are redeemed or sold in the market. Each Fund’s past performance is no guarantee of future results.

GROWTH OF $10,000 INVESTMENT

SINCE INCEPTION AT ASSET VALUE

[GRAPHIC APPEARS HERE]

	iSHARES RUSSELL MIDCAP INDEX FUND		RUSSELL MIDCAP INDEX		iSHARES RUSSELL MIDCAP GROWTH INDEX FUND		RUSSELL MIDCAP GROWTH INDEX		iSHARES RUSSELL MIDCAP VALUE INDEX FUND		RUSSELL MIDCAP VALUE INDEX
6/30/2001	$	10,000.00	$	10,000.00	$	10,000.00	$	10,000.00	$	10,000.00	$	10,000.00
7/31/2001	$	9,988.24	$	9,988.00	$	9,978.11	$	9,981.00	$	9,992.39	$	9,993.00
8/31/2001	$	9,602.01	$	9,603.00	$	9,252.68	$	9,257.38	$	9,807.25	$	9,810.13
9/30/2001	$	8,443.32	$	8,445.00	$	7,721.06	$	7,727.13	$	8,870.15	$	8,874.24
10/31/2001	$	8,778.55	$	8,780.00	$	8,530.36	$	8,539.25	$	8,919.16	$	8,921.28
11/30/2001	$	9,511.36	$	9,515.00	$	9,447.61	$	9,458.93	$	9,540.69	$	9,545.76
12/31/2001	$	9,890.06	$	9,898.00	$	9,804.84	$	9,818.37	$	9,934.43	$	9,941.91
1/31/2002	$	9,829.21	$	9,839.00	$	9,483.08	$	9,499.27	$	10,031.70	$	10,042.33
2/28/2002	$	9,722.72	$	9,734.00	$	8,944.98	$	8,960.67	$	10,191.68	$	10,205.01
3/31/2002	$	10,307.04	$	10,318.00	$	9,625.76	$	9,644.36	$	10,712.98	$	10,726.49
4/30/2002	$	10,105.74	$	10,118.00	$	9,116.40	$	9,134.18	$	10,703.99	$	10,718.98
5/31/2002	$	9,989.02	$	10,004.00	$	8,841.18	$	8,861.98	$	10,686.02	$	10,702.90
6/30/2002	$	9,321.50	$	9,334.00	$	7,865.27	$	7,883.62	$	10,205.80	$	10,225.55
7/31/2002	$	8,420.73	$	8,423.00	$	7,101.06	$	7,117.33	$	9,220.93	$	9,224.47
8/31/2002	$	8,466.53	$	8,469.00	$	7,075.04	$	7,092.42	$	9,327.93	$	9,331.47
9/30/2002	$	7,684.64	$	7,687.00	$	6,511.47	$	6,529.28	$	8,385.32	$	8,389.00
10/31/2002	$	8,072.53	$	8,075.00	$	7,014.25	$	7,035.30	$	8,649.42	$	8,655.77
11/30/2002	$	8,630.54	$	8,636.00	$	7,560.86	$	7,586.16	$	9,191.87	$	9,201.08
12/31/2002	$	8,290.74	$	8,296.00	$	7,103.74	$	7,127.96	$	8,972.11	$	8,982.09
1/31/2003	$	8,121.68	$	8,128.00	$	7,032.46	$	7,058.11	$	8,721.98	$	8,733.29
2/28/2003	$	8,014.10	$	8,021.00	$	6,970.77	$	6,996.70	$	8,576.07	$	8,588.32
3/31/2003	$	8,091.34	$	8,100.00	$	7,099.69	$	7,126.84	$	8,603.44	$	8,617.52
4/30/2003	$	8,676.87	$	8,688.00	$	7,581.04	$	7,612.18	$	9,254.88	$	9,272.45
5/31/2003	$	9,467.86	$	9,483.00	$	8,309.25	$	8,344.47	$	10,065.91	$	10,088.42
6/30/2003	$	9,563.37	$	9,579.00	$	8,426.39	$	8,463.79	$	10,134.25	$	10,159.04
7/31/2003	$	9,875.90	$	9,895.00	$	8,725.47	$	8,765.95	$	10,448.44	$	10,474.99
8/31/2003	$	10,303.50	$	10,325.00	$	9,204.28	$	9,248.95	$	10,816.53	$	10,846.85
9/30/2003	$	10,172.08	$	10,196.00	$	9,023.41	$	9,069.53	$	10,729.81	$	10,762.25
10/31/2003	$	10,945.41	$	10,973.00	$	9,748.13	$	9,800.53	$	11,513.76	$	11,552.19
11/30/2003	$	11,250.26	$	11,281.00	$	10,006.18	$	10,062.78	$	11,846.35	$	11,886.93
12/31/2003	$	11,585.24	$	11,620.00	$	10,114.70	$	10,172.62	$	12,354.11	$	12,400.07
1/31/2004	$	11,920.69	$	11,957.00	$	10,445.77	$	10,508.51	$	12,676.53	$	12,727.27
2/29/2004	$	12,174.87	$	12,215.00	$	10,618.86	$	10,684.80	$	12,988.34	$	13,042.00
3/31/2004	$	12,175.14	$	12,217.00	$	10,596.33	$	10,664.38	$	13,005.22	$	13,063.02

Performance figures assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Funds, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Funds. These expenses negatively impact the performance of each Fund. Each Fund’s past performance is no guarantee of future results.

6 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

FUND ALLOCATION BY SECTOR

(% of Net Assets)

[GRAPHIC APPEARS HERE]

RUSSELL MIDCAP

Auto & Transportation	2.58	%
Consumer Discretionary	18.81	%
Consumer Staples	3.50	%
Financial Services	24.30	%
Health Care	10.11	%
Integrated Oils	1.02	%
Materials & Processing	6.71	%
Other Energy	3.41	%
Other Sectors, Short-Term and Net Other Assets	2.10	%
Producer Durables	6.56	%
Technology	12.99	%
Utilities	7.91	%

RUSSELL MIDCAP GROWTH

Auto & Transportation	1.76	%
Consumer Discretionary	27.43	%
Consumer Staples	2.33	%
Financial Services	11.66	%
Health Care	20.37	%
Materials & Processing	4.19	%
Other Energy	3.40	%
Other Sectors, Short-Term and Net Other Assets	0.74	%
Producer Durables	6.84	%
Technology	19.39	%
Utilities	1.89	%

RUSSELL MIDCAP VALUE

Auto & Transportation	3.10	%
Consumer Discretionary	13.11	%
Consumer Staples	4.25	%
Financial Services	32.62	%
Health Care	3.35	%
Integrated Oils	1.69	%
Materials & Processing	8.44	%
Other Energy	3.45	%
Producer Durables	6.37	%
Other Sectors, Short-Term and Net Other Assets	2.98	%
Technology	8.79	%
Utilities	11.85	%

The iShares Russell Midcap Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Russell Midcap Index (the “Index”). For the one-year period ended March 31, 2004 (the “reporting period”), the Fund returned 50.47%, while the Index returned 50.83%.

The iShares Russell Midcap Growth Index Fund (the “Growth Fund”) and iShares Russell Midcap Value Index Fund (the “Value Fund”) seek investment results that correspond generally to the price and yield performance, before fees and expenses, of the growth and value components of the Index, as measured by the Russell Midcap Growth Index (the “Growth Index”) and the Russell Midcap Value Index (the “Value Index”), respectively. For the reporting period, the Growth Fund and the Value Fund returned 49.25% and 51.17%, respectively, while the Growth Index returned 49.63% and the Value Index returned 51.60%.

The U.S. stock market staged an impressive rally during the reporting period. The main catalyst for the market’s strong performance was an emerging economic recovery fueled by low interest rates and federal tax cuts. By the third quarter of 2003, economic growth surged to an 8.2% annual rate — the economy’s strongest quarter in nearly 20 years. As a result, corporate profit growth accelerated and investor confidence soared, providing a healthy boost to stock prices.

Although the stock market rally cooled off somewhat in early 2004, all of the major stock indexes posted gains of 30% or more for the reporting period. Mid-capitalization stocks outpaced the overall market, trailing only small-capitalization stocks, which typically perform best in the early stages of an economic recovery. Within the mid-capitalization segment of the market, value and growth stocks posted similar returns, but value came out slightly ahead.

Reflecting the broad-based stock market rally, every sector within the Index posted strong gains for the reporting period. Technology was the best-performing sector by a wide margin, rebounding sharply after three straight years of declines. Other leading sectors in the Index included materials and consumer discretionary, both of which are cyclical sectors that typically benefit from an economic recovery. Financials, which made up the largest sector weighting in the Index at the end of the reporting period, also posted very strong results. Lagging sectors included some of the more defensive areas of the market, such as energy, utilities, and consumer staples.

Each of the Fund’s ten largest individual holdings posted gains during the reporting period, and five of them rose by more than 100%. The best performers among the top ten holdings were all technology stocks, including communications networking firm Lucent Technologies Inc. (0.58% of the net assets of the Fund as of March 31, 2004), which soared 179.59%; testing equipment maker Agilent Technologies Inc. (0.51% of the net assets of the Fund as of March 31, 2004), which climbed 140.53%; and security software developer Symantec Corp. (0.50% of the net assets of the Fund as of March 31, 2004), which returned 136.35%. Zimmer Holdings Inc. (0.61% of the net assets of the Fund as of March 31, 2004), a medical products manufacturer and the Fund’s largest holding, and coffee retailer Starbucks Corp. (0.51% of the net assets of the Fund as of March 31, 2004), gained 51.72% and 47.01%, respectively.

MANAGERS’ DISCUSSION & ANALYSIS 7

Schedule of Investments

iSHARES^® RUSSELL 3000 INDEX FUND

March 31, 2004

Security	Shares	Value
COMMON STOCKS – 99.92%
General Electric Co.	1,192,015	$	36,380,298
Exxon Mobil Corp.	796,637		33,132,133
Pfizer Inc.	941,558		33,001,608
Citigroup Inc.	613,994		31,743,490
Microsoft Corp.	1,066,629		26,633,726
Intel Corp.	779,261		21,195,899
Cisco Systems Inc.1	837,063		19,687,722
American International Group Inc.	273,751		19,532,134
Wal-Mart Stores Inc.	316,963		18,919,521
Johnson & Johnson	354,061		17,957,974
International Business Machines Corp.	193,098		17,734,120
Procter & Gamble Co.	154,404		16,193,892
Bank of America Corp.	178,525		14,456,954
Altria Group Inc.	241,468		13,147,933
Coca-Cola Co. (The)	255,562		12,854,769
Verizon Communications Inc.	327,970		11,984,024
Merck & Co. Inc.	267,398		11,816,318
Wells Fargo & Company	201,159		11,399,681
ChevronTexaco Corp.	127,398		11,182,996
PepsiCo Inc.	204,880		11,032,788
Home Depot Inc.	273,523		10,218,819
JP Morgan Chase & Co.	242,216		10,160,961
SBC Communications Inc.	396,177		9,722,184
Dell Inc.1	271,624		9,131,999
Amgen Inc.1	153,765		8,944,510
Time Warner Inc.1	515,861		8,697,416
Fannie Mae	116,835		8,686,682
Hewlett-Packard Co.	363,968		8,313,029
Lilly (Eli) & Co.	115,075		7,698,517
Abbott Laboratories	186,121		7,649,573
3M Co.	93,202		7,630,448
Bank One Corp.	136,208		7,426,060
Comcast Corp. Class A1	255,002		7,328,757
Morgan Stanley	126,400		7,242,720
Viacom Inc. Class B	184,661		7,240,558
Wachovia Corp.	152,690		7,176,430
American Express Co.	137,009		7,103,917
Medtronic Inc.	145,405		6,943,089
Merrill Lynch & Co. Inc.	110,518		6,582,452
U.S. Bancorp	228,883		6,328,615
QUALCOMM Inc.	94,116		6,251,185
BellSouth Corp.	220,186		6,096,950
Walt Disney Co. (The)	243,602		6,087,614
Texas Instruments Inc.	206,168		6,024,229
Wyeth	158,324		5,945,066
ConocoPhillips	80,919		5,648,955
FleetBoston Financial Corp.	125,763		5,646,759
Bristol-Myers Squibb Co.	231,088		5,599,262
Oracle Corp.1	461,919		5,547,647
United Technologies Corp.	61,440		5,302,272
Lowe’s Companies Inc.	90,637		5,087,455
Anheuser-Busch Companies Inc.	99,466		5,072,766
Du Pont (E.I.) de Nemours and Co.	118,734		5,012,949
Freddie Mac	82,911		4,896,724
Target Corp.	108,572		4,890,083
Motorola Inc.	276,055		4,858,568
Gillette Co. (The)	121,732		4,759,721
First Data Corp.	110,336		4,651,766
UnitedHealth Group Inc.	70,764		4,560,032
Washington Mutual Inc.	103,872		4,436,373
Dow Chemical Co. (The)	109,136		4,395,998
McDonald’s Corp.	151,662		4,332,983
United Parcel Service Inc. Class B	61,166		4,271,833
Applied Materials Inc.1	197,299		4,218,253
Walgreen Co.	122,167		4,025,403
EMC Corp.1	281,241		3,827,690
Kimberly-Clark Corp.	60,635		3,826,068
Allstate Corp. (The)	83,903		3,814,230
Cardinal Health Inc.	53,210		3,666,169
AT&T Wireless Services Inc.1	267,632		3,642,472
Liberty Media Corp. Class A1	328,264		3,594,491
Boeing Co. (The)	87,258		3,583,686
Goldman Sachs Group Inc. (The)	33,916		3,539,135
MBNA Corp.	127,912		3,534,209
Colgate-Palmolive Co.	64,125		3,533,287
Alcoa Inc.	100,738		3,494,601
eBay Inc.1	49,949		3,462,964
Honeywell International Inc.	98,970		3,350,134
Fifth Third Bancorp	59,748		3,308,247
Boston Scientific Corp.1	76,746		3,252,502
Caterpillar Inc.	41,051		3,245,903

8 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 INDEX FUND

March 31, 2004

Security	Shares	Value
Yahoo! Inc.1	64,048	$	3,112,092
Sysco Corp.	77,418		3,023,173
Emerson Electric Co.	50,165		3,005,887
Automatic Data Processing Inc.	71,266		2,993,172
Cendant Corp.	121,371		2,960,239
Marsh & McLennan Companies Inc.	63,805		2,954,171
Prudential Financial Inc.	65,744		2,944,016
Forest Laboratories Inc.1	40,662		2,912,212
Bank of New York Co. Inc. (The)	92,067		2,900,110
Ford Motor Company	209,598		2,844,245
Schering-Plough Corp.	175,039		2,839,133
Gannett Co. Inc.	32,008		2,821,185
FedEx Corp.	35,597		2,675,471
Exelon Corp.	38,783		2,670,985
Clear Channel Communications Inc.	62,571		2,649,882
Lehman Brothers Holdings Inc.	31,853		2,639,658
Southern Company	85,998		2,622,939
General Motors Corp.	55,327		2,605,902
Genentech Inc.1	24,436		2,585,818
Nextel Communications Inc. Class A1	103,939		2,570,411
Dominion Resources Inc.	38,272		2,460,890
AFLAC Inc.	61,237		2,458,053
Illinois Tool Works Inc.	30,633		2,427,053
Duke Energy Corp.	107,365		2,426,449
International Paper Co.	57,059		2,411,313
HCA Inc.	58,453		2,374,361
BB&T Corp.	66,742		2,355,993
Guidant Corp.	36,965		2,342,472
National City Corp.	65,806		2,341,377
Baxter International Inc.	71,507		2,208,851
Newmont Mining Corp.	46,530		2,169,694
Hartford Financial Services Group Inc.	33,748		2,149,748
Zimmer Holdings Inc.1	28,875		2,130,398
Waste Management Inc.	70,444		2,126,000
Avon Products Inc.	27,990		2,123,601
Analog Devices Inc.	43,576		2,092,084
Occidental Petroleum Corp.	45,214		2,082,105
State Street Corp.	39,596		2,064,139
SunTrust Banks Inc.	29,538		2,059,094
SLM Corp.	49,120		2,055,672
General Mills Inc.	44,023		2,054,994
Costco Wholesale Corp.1	54,467		2,045,781
Capital One Financial Corp.	26,994		2,036,157
Progressive Corp. (The)	23,231		2,035,036
Northrop Grumman Corp.	20,677		2,035,030
Sara Lee Corp.	92,962		2,032,149
Lucent Technologies Inc.1	492,769		2,025,281
Lockheed Martin Corp.	44,073		2,011,492
WellPoint Health Networks Inc.1	17,586		1,999,880
Deere & Co.	28,605		1,982,613
Sprint Corp. (FON Group)	107,237		1,976,378
Biogen Idec Inc.1	34,887		1,939,717
Harley-Davidson Inc.	36,061		1,923,494
PNC Financial Services Group	34,687		1,922,354
General Dynamics Corp.	21,147		1,889,062
Countrywide Financial Corp.	19,638		1,883,284
Alltel Corp.	37,114		1,851,617
International Game Technology Inc.	40,776		1,833,289
AT&T Corp.	93,645		1,832,633
Maxim Integrated Products Inc.	38,668		1,820,876
Union Pacific Corp.	30,311		1,813,204
Omnicom Group Inc.	22,541		1,808,915
Agilent Technologies Inc.1	56,117		1,774,981
Corning Inc.1	158,528		1,772,343
Starbucks Corp.1	46,509		1,755,715
Travelers Property Casualty Corp. Class B	100,894		1,742,439
McGraw-Hill Companies Inc. (The)	22,723		1,730,129
Symantec Corp.1	37,284		1,726,249
ConAgra Foods Inc.	64,033		1,725,049
Gap Inc. (The)	78,352		1,717,476
Weyerhaeuser Co.	26,111		1,710,271
Apache Corp.	38,561		1,664,678
Golden West Financial Corp.	14,859		1,663,465
Kohls Corp.1	34,299		1,657,671
Masco Corp.	54,416		1,656,423
CVS Corp.	46,918		1,656,205
Mellon Financial Corp.	51,639		1,615,784
Best Buy Co. Inc.	31,076		1,607,251
Sun Microsystems Inc.1	385,055		1,601,829
Entergy Corp.	26,885		1,599,657
Devon Energy Corp.	27,479		1,597,904

SCHEDULES OF INVESTMENTS 9

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 INDEX FUND

March 31, 2004

Security	Shares	Value
Caremark Rx Inc.1	47,992	$	1,595,724
InterActiveCorp1	50,297		1,588,882
Halliburton Co.	52,048		1,581,739
Heinz (H.J.) Co.	41,842		1,560,288
American Electric Power Co. Inc.	47,276		1,556,326
St. Jude Medical Inc.1	21,555		1,554,116
Chubb Corp.	22,200		1,543,788
Raytheon Co.	49,194		1,541,740
Anadarko Petroleum Corp.	29,703		1,540,398
Aetna Inc.	17,144		1,538,160
Xilinx Inc.1	40,172		1,526,536
KeyCorp	50,341		1,524,829
Burlington Resources Inc.	23,929		1,522,602
Nike Inc. Class B	19,550		1,522,358
Staples Inc.1	59,505		1,510,832
Hancock (John) Financial Services Inc.	34,566		1,510,189
TJX Companies Inc.	61,451		1,509,237
Anthem Inc.1	16,517		1,497,101
Kroger Co.1	89,842		1,494,971
Computer Associates International Inc.	55,126		1,480,684
Bed Bath & Beyond Inc.1	35,407		1,478,596
Becton, Dickinson & Co.	30,482		1,477,767
Schwab (Charles) Corp. (The)	126,366		1,467,109
Stryker Corp.	16,540		1,464,286
Baker Hughes Inc.	40,130		1,463,942
FPL Group Inc.	21,822		1,458,801
Electronic Arts Inc.1	26,875		1,450,175
MetLife Inc.	40,590		1,448,251
Praxair Inc.	38,888		1,443,523
Gilead Sciences Inc.1	25,475		1,420,741
PG&E Corp.1	48,981		1,418,980
FirstEnergy Corp.	36,174		1,413,680
Paychex Inc.	39,495		1,406,022
Burlington Northern Santa Fe Corp.	44,598		1,404,837
Equity Office Properties Trust	48,184		1,392,036
Linear Technology Corp.	37,260		1,379,365
Air Products & Chemicals Inc.	27,083		1,357,400
SouthTrust Corp.	40,704		1,349,745
Johnson Controls Inc.	22,593		1,336,376
Veritas Software Corp.1	49,497		1,331,964
Fortune Brands Inc.	17,368		1,330,910
DIRECTV Group Inc. (The)1	86,195		1,325,679
Yum! Brands Inc.1	34,863		1,324,445
Apollo Group Inc. Class A1	15,330		1,320,066
Allergan Inc.	15,567		1,310,119
Tribune Co.	25,965		1,309,675
Lexmark International Inc.1	14,030		1,290,760
Xerox Corp.1	88,241		1,285,671
Southwest Airlines Co.	90,431		1,285,025
Danaher Corp.	13,715		1,280,570
Public Service Enterprise Group Inc.	26,952		1,266,205
Marathon Oil Corp.	36,941		1,243,803
Principal Financial Group Inc.	34,638		1,234,152
Federated Department Stores Inc.	22,436		1,212,666
Progress Energy Inc.	25,644		1,207,320
Pitney Bowes Inc.	28,001		1,193,123
May Department Stores Co. (The)	34,325		1,186,958
PPG Industries Inc.	20,324		1,184,889
Biomet Inc.	30,883		1,184,672
Apple Computer Inc.1	43,592		1,179,164
Consolidated Edison Inc.	26,686		1,176,853
Unocal Corp.	30,959		1,154,152
Kellogg Co.	29,300		1,149,732
Monsanto Co.	31,333		1,148,981
Amazon.com Inc.1	26,425		1,143,674
KLA-Tencor Corp.1	22,704		1,143,146
Wrigley (William Jr.) Co.	19,282		1,139,952
Comerica Inc.	20,869		1,133,604
Sears, Roebuck and Co.	26,216		1,126,239
Penney (J.C.) Co. Inc. (Holding Co.)	32,265		1,122,177
PACCAR Inc.	19,737		1,110,009
Medco Health Solutions Inc.1	32,394		1,101,396
Micron Technology Inc.1	65,868		1,100,654
TXU Corp.	38,345		1,098,968
Adobe Systems Inc.	27,759		1,094,537
Franklin Resources Inc.	19,626		1,092,776
Block (H & R) Inc.	21,337		1,088,827
Genzyme Corp.1	23,054		1,084,460
Safeway Inc.1	52,598		1,082,467
MBIA Inc.	17,219		1,079,631
Northern Trust Corp.	23,105		1,076,462
Limited Brands Inc.	53,048		1,060,960

10 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 INDEX FUND

March 31, 2004

Security	Shares	Value
New York Community Bancorp Inc.	30,686	$	1,051,916
Moody’s Corp.	14,834		1,050,247
Kraft Foods Inc.	32,799		1,049,896
Archer-Daniels-Midland Co.	62,052		1,046,817
Electronic Data Systems Corp.	53,972		1,044,358
Norfolk Southern Corp.	46,730		1,032,266
Juniper Networks Inc.1	39,678		1,032,025
Bear Stearns Companies Inc. (The)	11,765		1,031,555
Marshall & Ilsley Corp.	26,965		1,019,547
Broadcom Corp. Class A1	25,916		1,015,130
Georgia-Pacific Corp.	29,930		1,008,342
St. Paul Companies Inc.	25,145		1,006,051
Ameren Corp.	21,807		1,005,085
Lincoln National Corp.	21,222		1,004,225
Eaton Corp.	17,840		1,002,430
Marriott International Inc. Class A	23,500		999,925
CIGNA Corp.	16,834		993,543
Intuit Inc.1	22,018		988,168
McKesson Corp.	32,820		987,554
AmSouth Bancorp	41,844		983,752
Simon Property Group Inc.	16,829		983,487
Equity Residential	32,669		975,170
Regions Financial Corp.	26,570		970,336
Mattel Inc.	52,585		969,667
National Semiconductor Corp.1	21,723		965,153
PPL Corp.	20,917		953,815
Charter One Financial Inc.	26,931		952,280
Dover Corp.	24,139		935,869
SunGard Data Systems Inc.1	34,055		933,107
Jefferson-Pilot Corp.	16,948		932,309
Altera Corp.1	45,534		931,170
Valero Energy Corp.	15,473		927,761
Starwood Hotels & Resorts Worldwide Inc.	22,730		920,565
Loews Corp.	15,498		915,312
Clorox Co.	18,614		910,411
CIT Group Inc.	23,783		904,943
Albertson’s Inc.	40,648		900,353
Eastman Kodak Co.	34,310		897,893
General Growth Properties Inc.	25,488		895,903
EchoStar Communications Corp.1	27,249		892,405
Coach Inc.1	21,771		892,393
Synovus Financial Corp.	36,120		883,134
Hershey Foods Corp.	10,599		878,127
Sprint Corp. (PCS Group)1	93,831		863,245
Cox Communications Inc. Class A1	27,262		861,479
Cinergy Corp.	20,938		856,155
Computer Sciences Corp.1	21,190		854,593
Xcel Energy Inc.	47,904		853,170
AON Corp.	30,338		846,734
American Standard Companies Inc.1	7,353		836,404
Avaya Inc.1	52,598		835,256
ITT Industries Inc.	10,910		832,760
Edison International	34,138		829,212
DTE Energy Co.	20,142		828,843
Avery Dennison Corp.	13,258		824,780
Phelps Dodge Corp.1	10,013		817,662
Parker Hannifin Corp.	14,198		802,187
Centex Corp.	14,828		801,602
Constellation Energy Group Inc.	19,810		791,409
Fiserv Inc.1	21,821		780,537
CSX Corp.	25,645		776,787
Network Appliance Inc.1	35,884		769,712
Sovereign Bancorp Inc.	35,875		768,443
BJ Services Co.1	17,650		763,715
North Fork Bancorp Inc.	18,005		761,972
Interpublic Group of Companies Inc.1	49,398		759,741
Sempra Energy	23,834		757,921
New York Times Co. Class A	17,134		757,323
Newell Rubbermaid Inc.	32,581		755,879
Rohm & Haas Co.	18,837		750,466
Lennar Corp. Class A	13,861		748,910
D.R. Horton Inc.	21,132		748,707
Torchmark Corp.	13,866		745,852
Mylan Laboratories Inc.	32,543		739,702
Campbell Soup Co.	27,003		736,372
Ambac Financial Group Inc.	9,876		728,651
Donnelley (R.R.) & Sons Co.	24,075		728,269
AmerisourceBergen Corp.	13,291		726,752
Textron Inc.	13,644		725,179
Legg Mason Inc.	7,793		723,035
PeopleSoft Inc.1	39,034		721,739

SCHEDULES OF INVESTMENTS 11

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 INDEX FUND

March 31, 2004

Security	Shares	Value
Freeport-McMoRan Copper & Gold Inc.	18,428	$	720,351
Kinder Morgan Inc.	11,412		719,184
UST Inc.	19,909		718,715
Quest Diagnostics Inc.	8,674		718,467
Harrah’s Entertainment Inc.	13,068		717,303
Knight Ridder Inc.	9,791		717,191
First Tennessee National Corp.	15,034		717,122
KeySpan Corp.	18,726		715,708
M&T Bank Corp.	7,939		713,319
Fidelity National Financial Inc.	17,936		710,266
Cincinnati Financial Corp.	16,318		709,017
Plum Creek Timber Co. Inc.	21,738		706,050
Qwest Communications International Inc.1	163,706		705,573
Varian Medical Systems Inc.1	8,112		700,147
Office Depot Inc.1	37,043		697,149
National Commerce Financial Corp.	24,357		696,854
MedImmune Inc.1	30,160		696,093
ProLogis	19,391		695,555
Affiliated Computer Services Inc. Class A1	13,342		692,450
Laboratory Corp. of America Holdings1	17,616		691,428
Archstone-Smith Trust	23,159		683,422
Popular Inc.	15,803		681,109
MeadWestvaco Corp.	24,031		679,837
Rockwell Automation Inc.	19,585		679,012
Genuine Parts Co.	20,702		677,369
Sanmina SCI Corp.1	61,379		675,783
IMS Health Inc.	28,926		672,819
Advanced Micro Devices Inc.1	41,442		672,604
SAFECO Corp.	15,498		669,049
Union Planters Corp.	22,398		668,580
Rockwell Collins Inc.	21,148		668,488
T. Rowe Price Group Inc.	12,363		665,500
RadioShack Corp.	20,033		664,294
Health Management Associates Inc. Class A	28,589		663,551
NiSource Inc.	31,144		661,810
Dollar General Corp.	34,333		659,194
Banknorth Group Inc.	19,345		658,504
JDS Uniphase Corp.1	161,416		656,963
Pulte Homes Inc.	11,740		652,744
AutoZone Inc.1	7,573		651,051
Hilton Hotels Corp.	40,057		650,926
Career Education Corp.1	11,492		650,907
Microchip Technology Inc.	24,409		648,303
Family Dollar Stores Inc.	17,994		646,884
Ecolab Inc.	22,631		645,662
XTO Energy Inc.	25,551		644,914
Coca-Cola Enterprises Inc.	26,563		642,028
Compass Bancshares Inc.	15,098		626,114
EOG Resources Inc.	13,642		626,031
Tenet Healthcare Corp.1	56,040		625,406
Dean Foods Co.1	18,565		620,071
Kerr-McGee Corp.	12,036		619,854
Cintas Corp.	14,232		618,950
Vornado Realty Trust	10,209		617,440
Zions Bancorporation	10,759		615,415
Agere Systems Inc. Class B1	195,742		610,715
R.J. Reynolds Tobacco Holdings Inc.	10,091		610,506
Huntington Bancshares Inc.	27,223		604,078
Bard (C.R.) Inc.	6,179		603,318
Waters Corp.1	14,725		601,369
GreenPoint Financial Corp.	13,656		596,904
Williams Companies Inc.	62,248		595,713
Kimco Realty Corp.	11,548		588,717
Univision Communications Inc. Class A1	17,784		587,050
Pepsi Bottling Group Inc.	19,670		585,182
Public Storage Inc.	11,916		579,833
L-3 Communications Holdings Inc.	9,744		579,573
Murphy Oil Corp.	9,154		576,427
Sunoco Inc.	9,231		575,830
Nucor Corp.	9,354		575,084
Rouse Co. (The)	10,729		575,074
Novellus Systems Inc.1	18,061		574,159
Delphi Corp.	57,469		572,391
Siebel Systems Inc.1	49,557		570,401
Millennium Pharmaceuticals Inc.1	33,666		568,955
Whirlpool Corp.	8,260		568,866
Fox Entertainment Group Inc. Class A1	20,948		567,691

12 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 INDEX FUND

March 31, 2004

Security	Shares	Value
Sherwin-Williams Co. (The)	14,753	$	566,958
BEA Systems Inc.1	44,332		565,676
Ross Stores Inc.	18,476		565,550
Amerada Hess Corp.	8,603		561,604
MGIC Investment Corp.	8,706		559,186
Duke Realty Corp.	16,080		558,298
Jabil Circuit Inc.1	18,845		554,608
McCormick & Co. Inc.	16,517		553,650
Wendy’s International Inc.	13,599		553,343
Thermo Electron Corp.1	19,425		549,339
Watson Pharmaceuticals Inc.1	12,838		549,338
Express Scripts Inc.1	7,339		547,416
Leggett & Platt Inc.	23,072		547,037
Scientific-Atlanta Inc.	16,888		546,158
Estee Lauder Companies Inc. Class A	12,249		543,121
Smith International Inc.1	10,147		542,966
El Paso Corp.	76,244		542,095
BMC Software Inc.1	27,681		541,164
iStar Financial Inc.	12,784		540,763
E*TRADE Financial Corp.1	40,335		538,472
Old Republic International Corp.	21,832		536,194
Vulcan Materials Co.	11,291		535,645
NTL Inc.1	8,953		532,256
Teradyne Inc.1	22,188		528,740
Washington Post Company (The) Class B	597		527,993
Black & Decker Corp.	9,206		524,190
Solectron Corp.1	94,765		524,050
Jones Apparel Group Inc.	14,496		524,030
Unisys Corp.1	36,549		521,920
Smurfit-Stone Container Corp.	29,522		519,292
Commerce Bancorp Inc.	7,807		514,325
Sealed Air Corp.1	10,149		504,710
Darden Restaurants Inc.	20,326		503,882
ENSCO International Inc.	17,827		502,187
Tiffany & Co.	13,156		502,165
United States Steel Corp.	13,472		502,101
UNUMProvident Corp.	34,312		501,985
Patterson Dental Co.1	7,248		497,285
Novell Inc.1	43,662		496,874
Mohawk Industries Inc.1	6,021		495,829
Applera Corp. - Applied Biosystems Group	25,037		495,232
Harman International Industries Inc.	6,190		492,724
Republic Services Inc.	18,193		492,485
Boston Properties Inc.	9,030		490,419
SUPERVALU Inc.	15,956		487,296
King Pharmaceuticals Inc.1	28,860		486,002
Oxford Health Plans Inc.	9,872		482,247
NVIDIA Corp.1	18,070		478,674
Dun & Bradstreet Corp.1	8,931		477,808
Chico’s FAS Inc.1	10,289		477,410
Synopsys Inc.1	16,455		476,537
CDW Corp.	7,027		475,095
SCANA Corp.	13,420		474,397
Liz Claiborne Inc.	12,922		474,108
Radian Group Inc.	11,098		472,775
Sigma-Aldrich Corp.	8,540		472,604
Molex Inc.	15,473		470,224
Lear Corp.	7,581		469,719
CenturyTel Inc.	17,073		469,337
Cadence Design Systems Inc.1	31,808		468,850
Chiron Corp.1	10,647		468,574
Ball Corp.	6,912		468,495
Manpower Inc.	10,075		468,487
Host Marriott Corp.1	36,587		467,582
PETsMART Inc.	17,069		465,301
Janus Capital Group Inc.	28,378		464,832
Expeditors International Washington Inc.	11,764		464,560
Omnicare Inc.	10,448		463,160
Celgene Corp.1	9,712		462,777
SanDisk Corp.1	16,280		461,864
Autoliv Inc.	11,227		460,307
VF Corp.	9,847		459,855
American Power Conversion Corp.	19,976		459,648
Nordstrom Inc.	11,506		459,089
Allied Capital Corp.	15,038		455,501
NCR Corp.1	10,324		454,875
Whole Foods Market Inc.	6,049		453,373
Tyson Foods Inc. Class A	25,017		451,557
Wisconsin Energy Corp.	13,978		449,393

SCHEDULES OF INVESTMENTS 13

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 INDEX FUND

March 31, 2004

Security	Shares	Value
Liberty Property Trust	9,973	$	448,785
Pioneer Natural Resources Co.	13,866		447,872
XM Satellite Radio Holdings Inc. Class A1	15,982		447,496
Sepracor Inc.1	9,287		446,705
Caesars Entertainment Inc.1	34,132		445,081
TCF Financial Corp.	8,672		442,879
Sirius Satellite Radio Inc.1	130,047		442,160
Hibernia Corp. Class A	18,823		442,152
Citizens Communications Co.1	34,082		441,021
Health Care Property Investors Inc.	15,532		439,556
Grainger (W.W.) Inc.	9,139		438,672
Equifax Inc.	16,962		437,959
Energy East Corp.	17,259		437,688
Brinker International Inc.1	11,534		437,485
Energizer Holdings Inc.1	9,343		436,225
Foot Locker Inc.	16,799		433,414
Invitrogen Corp.1	6,002		430,283
Tellabs Inc.1	49,824		429,981
Toys R Us Inc.1	25,592		429,946
Telephone & Data Systems Inc.	6,056		429,189
Pactiv Corp.1	19,280		428,980
DST Systems Inc.1	9,440		428,104
Ameritrade Holding Corp.1	27,798		428,089
ServiceMaster Co. (The)	35,427		425,478
Citrix Systems Inc.1	19,641		424,638
AES Corp. (The)1	49,756		424,419
PMI Group Inc. (The)	11,359		424,372
Allied Waste Industries Inc.1	31,612		420,756
Dollar Tree Stores Inc.1	13,587		419,702
SPX Corp.	9,222		419,417
Providian Financial Corp.1	31,991		419,082
DENTSPLY International Inc.	9,433		418,165
Autodesk Inc.	13,224		418,143
Brunswick Corp.	10,201		416,507
Mercury Interactive Corp.1	9,243		414,086
Diebold Inc.	8,578		412,773
AvalonBay Communities Inc.	7,699		412,512
Robert Half International Inc.1	17,432		411,744
Engelhard Corp.	13,765		411,436
Hillenbrand Industries Inc.	6,001		407,408
Mercantile Bankshares Corp.	9,469		406,883
Vishay Intertechnology Inc.1	19,034		406,186
Lam Research Corp.1	16,011		403,637
VeriSign Inc.1	24,297		403,087
LSI Logic Corp.1	42,804		399,789
Eastman Chemical Co.	9,314		397,522
Goodrich (B.F.) Co.	14,145		397,050
Gentex Corp.	9,113		395,322
Pinnacle West Capital Corp.	10,004		393,657
Beckman Coulter Inc.	7,190		392,143
Sabre Holdings Corp.	15,761		391,030
KB Home	4,814		388,971
Michaels Stores Inc.	7,987		388,328
Symbol Technologies Inc.	27,912		385,186
Barr Pharmaceuticals Inc.1	8,370		384,183
Harris Corp.	7,912		383,020
Brown-Forman Corp. Class B	7,970		379,850
Fastenal Co.	7,072		379,696
Bausch & Lomb Inc.	6,318		378,890
Pepco Holdings Inc.	18,514		378,426
Manor Care Inc.	10,688		377,180
Ashland Inc.	8,095		376,337
ChoicePoint Inc.1	9,857		374,862
PacifiCare Health Systems Inc.1	9,471		374,578
Macerich Co. (The)	6,923		373,150
Abercrombie & Fitch Co. Class A	11,024		373,052
Fluor Corp.	9,623		372,314
Scripps (E.W.) Co. Class A	3,681		372,186
IVAX Corp.1	16,343		372,130
GTECH Holdings Corp.	6,280		371,399
QLogic Corp.1	11,231		370,735
Associated Bancorp	8,260		369,965
Doral Financial Corp.	10,486		369,107
CenterPoint Energy Inc.	32,223		368,309
Developers Diversified Realty Corp.	9,078		366,751
Humana Inc.1	19,192		365,032
ALLETE Inc.	10,341		362,866
Dana Corp.	18,134		360,141
Hasbro Inc.	16,545		359,854
CarMax Inc.1	12,310		359,452
Storage Technology Corp.1	12,886		358,617

14 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 INDEX FUND

March 31, 2004

Security	Shares	Value
Commerce Bancshares Inc.	7,508	$	358,207
Outback Steakhouse Inc.	7,353		358,091
Temple-Inland Inc.	5,630		356,604
Intersil Corp. Class A	15,914		354,723
Gallagher (Arthur J.) & Co.	10,889		354,655
Lamar Advertising Co.1	8,793		353,654
Edwards (A.G.) Inc.	9,004		352,236
Questar Corp.	9,666		352,229
AutoNation Inc.1	20,610		351,400
Astoria Financial Corp.	9,205		350,066
Iron Mountain Inc.1	7,833		349,587
Apartment Investment & Management Co. Class A	11,236		349,327
Coventry Health Care Inc.1	8,235		348,588
Corinthian Colleges Inc.1	10,542		348,519
International Rectifier Corp.1	7,563		347,822
Lincare Holdings Inc.1	11,065		347,662
Cephalon Inc.1	6,057		347,127
CH Robinson Worldwide Inc.	8,359		346,898
MGM Mirage1	7,604		344,765
Avnet Inc.1	14,057		344,256
Pentair Inc.	5,834		344,206
PMC-Sierra Inc.1	20,241		343,490
DaVita Inc.1	7,155		341,651
Patterson-UTI Energy Inc.1	9,624		340,786
Hospitality Properties Trust	7,325		339,880
Henry Schein Inc.1	4,747		339,031
Williams-Sonoma Inc.1	9,913		339,025
Alliant Energy Corp.	12,969		337,972
Comverse Technology Inc.1	18,566		336,787
Constellation Brands Inc.1	10,477		336,312
Red Hat Inc.1	14,684		335,676
Cognizant Technology Solutions Corp.1	7,408		335,212
Mandalay Resort Group	5,843		334,570
AMB Property Corp.	8,999		334,493
Compuware Corp.1	44,814		333,864
Network Associates Inc.1	18,516		333,288
Pogo Producing Co.	7,224		331,365
Equitable Resources Inc.	7,421		329,641
TECO Energy Inc.	22,494		329,087
Arrow Electronics Inc.1	12,863		327,492
Chesapeake Energy Corp.	24,357		326,384
Noble Energy Inc.	6,905		325,225
Alberto-Culver Co.	7,390		324,199
UnionBanCal Corp.	6,170		323,246
Atmel Corp.1	49,585		322,302
Investors Financial Services Corp.	7,790		321,883
Leucadia National Corp.	6,010		320,213
3Com Corp.1	45,351		320,178
Louisiana-Pacific Corp.	12,360		318,888
WebMD Corp.1	35,853		318,733
NSTAR	6,272		318,116
Eaton Vance Corp.	8,336		317,768
Catellus Development Corp.	12,209		317,556
Precision Castparts Corp.	7,211		317,500
Stanley Works (The)	7,436		317,368
Smucker (J.M.) Co. (The)	5,964		314,780
MDU Resources Group Inc.	13,398		314,719
New Plan Excel Realty Trust	11,505		314,662
Mack-Cali Realty Corp.	6,949		312,080
Apogent Technologies Inc.1	10,150		311,402
Hudson City Bancorp Inc.	8,214		310,818
Ceridian Corp.1	15,747		310,373
Valley National Bancorp	11,091		310,215
Monster Worldwide Inc.1	11,798		309,108
Pall Corp.	13,574		307,994
ImClone Systems Inc.1	6,055		307,957
Bank of Hawaii Corp.	6,634		307,353
Belo (A.H.) Corp.	11,063		307,109
Fisher Scientific International Inc.1	5,578		307,013
Berkley (W.R.) Corp.	7,694		306,837
Conexant Systems Inc.1	49,627		305,702
Andrew Corp.1	17,316		303,030
Navistar International Corp.1	6,609		303,023
Zebra Technologies Corp. Class A1	4,354		302,037
Maytag Corp.	9,557		301,714
Westwood One Inc.1	10,217		300,891
AmeriCredit Corp.1	17,624		300,137
Health Net Inc.1	12,022		299,708
Tektronix Inc.	9,130		298,642
International Flavors & Fragrances Inc.	8,399		298,164
United Dominion Realty Trust Inc.	15,148		297,204

SCHEDULES OF INVESTMENTS 15

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 INDEX FUND

March 31, 2004

Security	Shares	Value
Valspar Corp. (The)	6,026	$	296,660
Wilmington Trust Corp.	7,901		295,260
Cytyc Corp.1	13,235		294,479
Thornburg Mortgage Inc.	9,462		294,268
Markel Corp.1	1,005		289,339
DPL Inc.	15,400		288,750
Bemis Co.	11,090		288,340
City National Corp.	4,811		288,179
SEI Investment Co.	8,697		287,001
Fair Isaac Corp.	7,950		286,836
Cypress Semiconductor Corp.1	13,978		286,130
Sky Financial Group Inc.	10,975		284,801
Rite Aid Corp.1	52,295		284,485
American Tower Corp. Class A1	25,058		284,408
Weingarten Realty Investors	8,210		284,049
Northeast Utilities	15,155		282,641
Fulton Financial Corp.	12,668		282,116
Rambus Inc.1	10,062		282,038
ADC Telecommunications Inc.1	97,201		281,883
Protective Life Corp.	7,514		281,399
Federated Investors Inc. Class B	8,896		279,601
NVR Inc.1	605		278,300
UTStarcom Inc.1	9,648		277,476
Rent-A-Center Inc.1	8,398		277,050
Millipore Corp.1	5,382		276,527
CIENA Corp.1	55,434		275,507
Colonial BancGroup Inc. (The)	14,852		274,762
Fairchild Semiconductor International Inc. Class A1	11,422		274,471
Great Plains Energy Inc.	8,120		274,375
PerkinElmer Inc.	13,234		273,811
Webster Financial Corp.	5,386		273,124
Applebee’s International Inc.	6,601		272,951
Triad Hospitals Inc.1	8,851		272,788
NetScreen Technologies Inc.1	7,473		272,241
Universal Health Services Inc. Class B	5,908		272,182
Chelsea Property Group Inc.	4,321		271,964
Ryland Group Inc.	3,038		269,866
JetBlue Airways Corp.1	10,618		268,529
Convergys Corp.1	17,644		268,189
Cullen/Frost Bankers Inc.	6,256		267,507
National-Oilwell Inc.1	9,455		267,387
Martin Marietta Materials Inc.	5,792		267,359
Bowater Inc.	6,120		267,016
OGE Energy Corp.	10,091		266,806
BorgWarner Inc.	3,143		266,621
Service Corp. International1	35,686		266,574
Tech Data Corp.1	6,499		266,069
Smithfield Foods Inc.1	9,808		265,993
Reliant Resources Inc.1	32,319		265,339
Boise Cascade Corp.	7,641		264,761
Sonoco Products Co.	10,892		264,458
Hormel Foods Corp.	9,008		264,205
Puget Energy Inc.	11,794		263,832
Amylin Pharmaceuticals Inc.1	11,134		263,764
Annaly Mortgage Management Inc.	13,437		262,693
Western Digital Corp.1	23,381		262,569
Ryder System Inc.	6,761		261,854
Renal Care Group Inc.1	5,721		261,793
Protein Design Labs Inc.1	10,976		261,448
Viad Corp.	10,770		260,311
ONEOK Inc.	11,534		260,092
MGI Pharma Inc.1	4,226		258,885
Pier 1 Imports Inc.	10,899		258,306
Saks Inc.1	14,636		257,594
American Capital Strategies Ltd.	7,749		257,577
Rayonier Inc. REIT	5,892		257,539
HON Industries Inc.	6,913		256,887
Ventas Inc.	9,313		255,921
Polycom Inc.1	12,042		255,652
Jacobs Engineering Group Inc.1	5,730		255,558
Newfield Exploration Co.1	5,330		255,467
Cheesecake Factory (The)1	5,507		254,038
Covance Inc.1	7,366		253,685
Activision Inc.1	15,967		252,598
Circuit City Stores Inc.	22,196		250,815
Alliant Techsystems Inc.1	4,601		250,294
Pan Pacific Retail Properties Inc.	4,804		250,288
Rowan Companies Inc.1	11,833		249,558
Cummins Inc.	4,262		249,114
Donaldson Co. Inc.	9,386		249,011
Medicis Pharmaceutical Corp. Class A	6,212		248,480

16 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 INDEX FUND

March 31, 2004

Security	Shares	Value
Cabot Corp.	7,573	$	248,394
Level 3 Communications Inc.1	61,744		248,211
Krispy Kreme Doughnuts Inc.1	7,224		248,072
Federal Realty Investment Trust	5,367		247,955
Del Monte Foods Co.1	21,936		246,780
Cooper Cameron Corp.1	5,588		246,151
Toll Brothers Inc.1	5,414		245,958
Lyondell Chemical Co.	16,530		245,305
Reebok International Ltd.	5,909		244,337
Deluxe Corp.	6,086		244,049
Standard-Pacific Corp.	4,054		243,240
Nationwide Financial Services Inc.	6,731		242,653
Friedman, Billings, Ramsey Group, Inc. Class A	8,988		242,586
Hubbell Inc. Class B	6,045		242,586
Education Management Corp.1	7,617		242,449
First American Corp.	7,950		241,839
Lee Enterprises Inc.	5,344		241,442
HCC Insurance Holdings Inc.	7,466		241,376
AMR Corp.1	18,928		240,953
IndyMac Bancorp Inc.	6,604		239,659
Advance Auto Parts Inc.1	5,868		238,652
FirstMerit Corp.	9,149		238,331
First Health Group Corp.1	10,884		237,924
Affymetrix Inc.1	7,044		237,735
Health Care REIT Inc.	5,844		237,266
Dow Jones & Co. Inc.	4,947		237,011
Ruby Tuesday Inc.	7,369		236,913
Neiman-Marcus Group Inc. Class A	4,384		236,473
Graco Inc.	8,100		235,791
Aqua America Inc.	10,848		235,185
Edwards Lifesciences Corp.1	7,349		234,801
Washington Federal Inc.	9,158		233,804
Independence Community Bank Corp.	5,732		233,579
Andrx Group1	8,580		233,376
Polaris Industries Inc.	5,130		233,107
Herman Miller Inc.	8,733		232,560
ARAMARK Corp. Class B	8,477		232,355
Ingram Micro Inc. Class A1	12,779		231,300
Snap-On Inc.	7,144		231,037
Regis Corp.	5,198		230,999
NBTY Inc.1	6,204		230,665
HRPT Properties Trust	20,407		230,599
CheckFree Corp.1	7,813		230,171
Unitrin Inc.	5,361		229,987
Certegy Inc.	6,556		229,591
Hawaiian Electric Industries Inc.	4,422		229,236
Pride International Inc.1	13,428		229,082
RPM International Inc.	13,805		228,335
Mills Corp.	4,275		227,815
ICOS Corp.1	6,143		227,598
CBRL Group Inc.	5,737		227,415
Pharmaceutical Resources Inc.1	3,999		227,383
Reynolds & Reynolds Co. (The) Class A	8,000		227,280
Neurocrine Biosciences Inc.1	3,839		226,885
Cablevision Systems Corp.1	9,894		226,375
Allmerica Financial Corp.1	6,549		226,268
Charles River Laboratories International Inc.1	5,268		225,734
CenterPoint Properties Corp.	2,732		225,390
AnnTaylor Stores Corp.1	5,248		224,614
Brown & Brown Inc.	5,781		224,072
StanCorp Financial Group Inc.	3,426		223,547
BISYS Group Inc. (The)1	13,325		223,327
Harsco Corp.	4,903		223,086
Advanced Fibre Communications Inc.1	10,082		222,106
IKON Office Solutions Inc.	17,310		221,568
Sybase Inc.1	10,548		221,403
Borders Group Inc.	9,289		220,521
AGL Resources Inc.	7,559		219,362
Getty Images Inc.1	4,046		218,403
Accredo Health Inc.1	5,730		218,313
Foundry Networks Inc.1	12,689		217,870
Waddell & Reed Financial Inc. Class A	8,869		217,468
Arden Realty Inc.	6,712		216,999
Transatlantic Holdings Inc.	2,487		216,891
IDEXX Laboratories Inc.1	3,811		216,732
Vectren Corp.	8,759		216,085
Dade Behring Holdings Inc.1	4,848		215,639
Fremont General Corp.	7,045		215,577
Calpine Corp.1	45,820		213,979
CarrAmerica Realty Corp.	6,291		213,265

SCHEDULES OF INVESTMENTS 17

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 INDEX FUND

March 31, 2004

Security	Shares	Value
Steris Corp.1	8,257	$	213,031
Shurgard Storage Centers Inc. Class A	5,319		212,228
Coors (Adolf) Company Class B	3,053		212,031
DeVry Inc.1	7,030		211,954
Healthcare Realty Trust Inc.	4,961		211,835
Respironics Inc.1	3,918		211,650
Allegheny Energy Inc.1	15,381		210,874
Realty Income Corp.	4,703		209,989
Skyworks Solutions Inc.1	17,940		209,180
Corporate Executive Board Co. (The)	4,445		208,915
Pacific Sunwear of California Inc.1	8,509		208,811
Emulex Corp.1	9,764		207,876
Cooper Companies Inc.	3,847		207,738
WPS Resources Corp.	4,345		207,691
BJ’s Wholesale Club Inc.1	8,149		207,392
Carlisle Companies Inc.	3,657		207,169
Brocade Communications Systems Inc.1	31,080		206,993
South Financial Group Inc. (The)	6,973		206,331
Station Casinos Inc.	4,655		205,611
Crane Co.	6,229		205,557
Weight Watchers International Inc.1	4,839		204,545
Whitney Holding Corp.	4,894		204,276
Big Lots Inc.1	14,081		204,174
BRE Properties Inc. Class A	5,948		204,135
Applied Micro Circuits Corp.1	35,479		204,004
Teleflex Inc.	4,138		203,714
Hudson United Bancorp	5,344		203,339
Claire’s Stores Inc.	9,742		203,023
Entercom Communications Corp.1	4,480		202,810
Oshkosh Truck Corp.	3,638		202,637
Impac Mortgage Holdings Inc.	7,417		201,742
BancorpSouth Inc.	9,179		200,837
TECHNE Corp.1	4,911		200,418
Valeant Pharmaceuticals International	8,395		200,389
Westamerica Bancorp	3,963		199,973
Provident Financial Group Inc.	4,977		199,876
CNF Inc.	5,907		198,475
BearingPoint Inc.1	18,480		198,106
Cree Inc.1	8,878		197,979
Meredith Corp.	3,913		197,841
UGI Corp.	5,968		196,467
Stericycle Inc.1	4,102		196,322
Lubrizol Corp.	6,233		196,277
Peoples Energy Corp.	4,380		195,567
Human Genome Sciences Inc.1	15,565		195,029
Varco International Inc.1	10,811		194,706
Affiliated Managers Group Inc.1	3,550		193,732
Titan Corp. (The)1	9,593		193,683
Patina Oil & Gas Corp.	7,362		193,253
Maxtor Corp.1	23,706		193,204
UCBH Holdings Inc.	4,825		193,193
O’Reilly Automotive Inc.1	4,815		192,793
Church & Dwight Co. Inc.	4,438		192,210
Integrated Device Technology Inc.1	12,791		191,865
Terex Corp.1	5,189		191,837
Gen-Probe Inc.1	5,723		191,205
National Fuel Gas Co.	7,771		191,167
Reckson Associates Realty Corp.	6,768		190,452
IMC Global Inc.	13,267		189,718
Zale Corp.1	3,072		189,082
Mettler Toledo International Inc.1	4,257		189,011
Nicor Inc.	5,361		188,868
Forest City Enterprises Inc. Class A	3,499		188,421
First Industrial Realty Trust Inc.	4,762		188,099
York International Corp.	4,785		188,098
Linens ‘n Things Inc.1	5,297		187,567
First Midwest Bancorp Inc.	5,478		187,019
Old National Bancorp	8,223		185,840
Hyperion Solutions Corp.1	4,476		185,530
AmerUs Group Co.	4,592		185,287
Avocent Corp.1	5,025		184,870
Hunt (J.B.) Transport Services Inc.1	6,559		184,767
Silicon Laboratories Inc.1	3,493		184,710
Performance Food Group Co.1	5,371		184,494
Hughes Supply Inc.	3,516		184,238
FMC Technologies Inc.1	6,793		183,615
Tidewater Inc.	6,526		183,576
Brink’s Co. (The)	6,644		183,242
Furniture Brands International Inc.	5,670		182,574
Alliance Gaming Corp.1	5,679		182,466
Grant Prideco Inc.1	11,768		182,404
AGCO Corp.1	8,799		182,227

18 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 INDEX FUND

March 31, 2004

Security	Shares	Value
Toro Co.	2,929	$	181,598
SL Green Realty Corp.	3,801		181,308
Jefferies Group Inc.	5,128		181,172
Greater Bay Bancorp	6,188		180,999
Apria Healthcare Group Inc.1	6,042		180,897
Camden Property Trust	4,020		180,699
Briggs & Stratton Corp.	2,653		178,998
Take-Two Interactive Software Inc.1	4,824		177,427
Plantronics Inc.1	4,840		177,192
Owens-Illinois Inc.1	12,626		177,017
AMETEK Inc.	6,898		176,865
Evergreen Resources Inc.1	5,140		176,559
Peabody Energy Corp.	3,793		176,412
Polo Ralph Lauren Corp.	5,134		175,994
Integrated Circuit Systems Inc.1	7,023		175,786
Crown Holdings Inc.1	18,841		175,598
RF Micro Devices Inc.1	20,755		175,587
Pediatrix Medical Group Inc.1	2,784		175,392
Raymond James Financial Inc.	7,053		175,267
Piedmont Natural Gas Co.	4,146		175,044
Duquesne Light Holdings Inc.	8,974		174,993
Vitesse Semiconductor Corp.1	24,668		174,896
Helmerich & Payne Inc.	6,098		174,708
Roper Industries Inc.	3,618		174,569
Citizens Banking Corp.	5,345		174,407
WGL Holdings Inc.	5,787		174,189
Pixar Inc.1	2,699		173,978
Radio One Inc. Class D1	9,333		172,661
Nationwide Health Properties Inc.	7,749		172,570
ResMed Inc.1	3,816		172,445
FMC Corp.1	4,022		172,222
MONY Group Inc. (The)1	5,471		172,008
Beazer Homes USA Inc.	1,623		171,892
INAMED Corp.1	3,220		171,562
Key Energy Services Inc.1	15,534		170,874
Acxiom Corp.	7,779		170,827
OSI Pharmaceuticals Inc.1	4,443		170,611
Alexander & Baldwin Inc.	5,156		170,560
American Eagle Outfitters Inc.1	6,325		170,522
Copart Inc.1	7,844		170,450
Energen Corp.	4,128		170,280
Highwoods Properties Inc.	6,490		170,103
Trustmark Corp.	5,844		170,060
Couer d’Alene Mines Corp.1	24,254		169,778
American Greetings Corp. Class A1	7,441		169,432
International Speedway Corp. Class A	3,599		169,153
Kennametal Inc.	4,094		168,959
First Bancorp	4,055		168,688
Barnes & Noble Inc.1	5,167		168,444
Scotts Co. (The) Class A1	2,618		167,945
Pharmaceutical Product Development Inc.1	5,632		167,777
Community Health Systems Inc.1	6,026		167,704
Onyx Pharmaceuticals Inc.1	4,143		167,626
Western Wireless Corp. Class A1	7,148		167,049
National Instruments Corp.	5,302		166,801
NII Holdings Inc. Class B1	4,758		166,673
Martek Biosciences Corp.1	2,923		166,611
Arch Coal Inc.	5,299		166,336
Novastar Financial Inc.	2,516		165,930
Hovnanian Enterprises Inc. Class A1	3,844		165,869
International Bancshares Corp.	3,136		165,675
Tom Brown Inc.1	4,388		164,989
Trizec Properties Inc.	9,619		164,966
Corn Products International Inc.	4,122		164,880
Wiley (John) & Sons Inc. Class A	5,473		163,807
Extended Stay America Inc.	8,453		163,735
Macromedia Inc.1	8,142		163,410
ITT Educational Services Inc.1	5,236		163,363
Pacific Capital Bancorp	4,105		162,845
Metro-Goldwyn-Mayer Inc.1	9,345		162,603
Yellow Roadway Corp.1	4,826		162,491
Semtech Corp.1	7,114		162,413
Akamai Technologies Inc.1	12,330		162,016
Cytec Industries Inc.	4,542		161,559
Ethan Allen Interiors Inc.	3,915		161,533
Joy Global Inc.	5,745		161,262
Medicines Co. (The)1	5,003		161,147
Westar Energy Inc.	7,682		161,015
Gemstar-TV Guide International Inc.1	23,965		160,805
Avid Technology Inc.1	3,484		160,717
Crescent Real Estate Equities Co.	8,934		160,544

SCHEDULES OF INVESTMENTS 19

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 INDEX FUND

March 31, 2004

Security	Shares	Value
University of Phoenix Online1	1,841	$	160,204
Cymer Inc.1	4,143		159,961
Amkor Technology Inc.1	10,927		159,862
Cooper Tire & Rubber Co.	7,914		159,467
Sonic Corp.1	4,646		159,265
Massey Energy Co.	7,198		158,860
St. Joe Company (The)	3,900		158,691
New Century Financial Corp.	3,262		158,403
Harte-Hanks Inc.	6,749		158,062
Phoenix Companies Inc.	11,772		157,863
Worthington Industries Inc.	8,234		157,846
East West Bancorp Inc.	2,817		157,752
Pep Boys-Manny, Moe & Jack Inc.	5,671		157,370
W Holding Co. Inc.	8,395		156,903
Dycom Industries Inc.1	5,913		156,813
M.D.C. Holdings Inc.	2,225		156,661
Packaging Corporation of America	6,926		156,251
Mercury General Corp.	3,126		156,081
Imation Corp.	4,146		155,973
Staten Island Bancorp Inc.	6,250		155,500
McClatchy Co. (The) Class A	2,183		155,080
Lafarge North America Inc.	3,811		154,917
CMS Energy Corp.1	17,242		154,316
Florida Rock Industries Inc.	3,659		154,227
Henry (Jack) & Associates Inc.	8,007		154,215
United Stationers Inc.1	3,662		154,170
Goodyear Tire & Rubber Co. (The)1	18,008		153,788
Benchmark Electronics Inc.1	4,880		153,622
Nektar Therapeutics1	7,109		153,412
AptarGroup Inc.	3,995		153,408
Cathay General Bancorp	2,329		153,295
Cerner Corp.1	3,386		153,013
Visteon Corp.	15,987		152,996
Park National Corp.	1,348		152,728
CBL & Associates Properties Inc.	2,484		152,369
ArvinMeritor Inc.	7,660		151,898
KEMET Corp.1	10,577		151,674
P.F. Chang’s China Bistro Inc.1	3,007		151,282
Ascential Software Corp.1	6,865		150,481
Corrections Corp. of America1	4,222		150,303
Erie Indemnity Co. Class A	3,114		150,282
CACI International Inc. Class A1	3,491		150,113
Perrigo Co.	7,484		150,054
Home Properties Inc.	3,674		149,715
Valassis Communications Inc.1	4,907		149,173
Airgas Inc.	7,000		149,100
Atmos Energy Corp.	5,820		148,817
Ask Jeeves Inc.1	4,160		148,637
Sylvan Learning Systems Inc.1	4,233		148,621
Hot Topic Inc.1	5,611		148,411
OmniVision Technologies Inc.1	5,432		148,348
DoubleClick Inc.1	13,186		148,342
Diamond Offshore Drilling Inc.	6,130		148,285
Flir Systems Inc.1	3,889		148,249
Washington Real Estate Investment Trust	4,565		148,134
Strayer Education Inc.	1,265		147,967
GrafTech International Ltd.1	9,885		147,781
Callaway Golf Co.	7,761		147,304
Idex Corp.	3,387		147,267
Charter Communications Inc. Class A1	31,259		147,230
Regency Centers Corp.	3,144		146,919
Ligand Pharmaceuticals Inc. Class B1	7,292		146,569
Global Payments Inc.	3,244		146,240
CEC Entertainment Inc.1	4,211		146,104
Prentiss Properties Trust	3,957		146,013
Varian Semiconductor Equipment Associates Inc.1	3,454		145,068
Tularik Inc.1	5,909		145,066
PepsiAmericas Inc.	7,073		144,431
Urban Outfitters Inc.1	3,005		144,420
Alexandria Real Estate Equities Inc.	2,288		144,144
Cousins Properties Inc.	4,389		143,915
Varian Inc.1	3,577		143,688
MAF Bancorp Inc.	3,296		143,244
Arbitron Inc.1	3,556		143,165
Universal Corp.	2,813		142,957
Dillards Inc. Class A	7,456		142,857
LifePoint Hospitals Inc.1	4,415		142,781
Mentor Graphics Corp.1	7,996		142,489
People’s Bank	3,060		142,259
Cimarex Energy Co.1	4,920		142,188

20 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 INDEX FUND

March 31, 2004

Security	Shares	Value
La Quinta Corp.1	18,779	$	141,594
Commercial Federal Corp.	5,109		141,008
Abgenix Inc.1	10,601		140,887
Bob Evans Farms Inc.	4,342		140,854
La-Z-Boy Inc.	6,469		140,765
IDACORP Inc.	4,693		140,321
ADTRAN Inc.	4,657		139,850
Invacare Corp.	3,087		139,347
Essex Property Trust Inc.	2,121		138,925
Hilb, Rogal & Hamilton Co.	3,637		138,570
BlackRock Inc.	2,262		138,367
Olin Corp.	7,751		138,355
Community First Bankshares Inc.	4,294		138,009
United Bancshares Inc.	4,519		137,830
Downey Financial Corp.	2,605		137,804
Amphenol Corp. Class A1	4,616		137,095
Quiksilver Inc.1	6,251		136,584
Chittenden Corp.	4,127		136,191
PNM Resources Inc.	4,520		135,826
Gateway Inc.1	25,595		135,142
Mentor Corp.	4,489		135,119
SkyWest Inc.	7,010		134,872
Waste Connections Inc.1	3,369		134,086
Timberland Co. Class A1	2,250		133,763
Electronics For Imaging Inc.1	5,440		133,661
Taubman Centers Inc.	5,303		133,477
Forest Oil Corp.1	5,285		133,446
Mueller Industries Inc.	3,924		133,377
CLARCOR Inc.	3,017		133,201
Readers Digest Association Inc. (The)	9,458		133,169
Axcelis Technologies Inc.1	11,924		132,595
Landstar System Inc.1	3,237		132,523
IDT Corp.1	6,664		132,414
Crown Castle International Corp.1	10,461		132,122
Tetra Tech Inc.1	6,139		131,743
Timken Co. (The)	5,671		131,737
Panera Bread Co. Class A1	3,374		131,316
Loews Corporation - Carolina Group	4,800		131,280
Pennsylvania Real Estate Investment Trust	3,484		131,207
Cognex Corp.	3,939		130,972
Tractor Supply Co.1	3,382		130,951
Dynegy Inc. Class A1	33,051		130,882
Southwest Bancorp of Texas Inc.	3,465		130,734
Blyth Inc.	3,993		130,451
Stone Energy Corp.1	2,637		130,426
Commerce Group Inc.	2,717		130,416
Media General Inc. Class A	1,932		129,985
VCA Antech Inc.1	3,642		129,764
EarthLink Inc.1	14,624		129,569
Ohio Casualty Corp.1	6,462		129,175
Black Hills Corp.	4,049		129,042
Trimble Navigation Ltd.1	5,614		128,729
AMERIGROUP Corp.1	2,814		128,600
SCP Pool Corp.1	3,451		128,584
Lancaster Colony Corp.	3,172		128,149
CNET Networks Inc.1	12,381		127,896
Banta Corp.	2,761		127,807
New Jersey Resources Corp.	3,367		127,273
CharterMac	5,136		127,270
Emmis Communications Corp.1	5,328		126,860
First Niagara Financial Group Inc.	9,285		126,740
Tesoro Petroleum Corp.1	6,741		126,663
Vicuron Pharmaceuticals Inc.1	5,563		126,558
Southern Union Co.1	6,673		126,453
Eagle Materials Inc.	2,145		126,233
American Axle & Manufacturing Holdings Inc.1	3,407		125,548
Potlatch Corp.	3,075		125,306
Premcor Inc.1	4,043		125,212
Delphi Financial Group Inc. Class A	2,977		125,094
LNR Property Corp.	2,335		124,993
Westport Resources Corp.1	3,787		124,933
FNB Corp. (Florida)	5,644		124,732
Susquehanna Bancshares Inc.	4,862		124,613
Piper Jaffray Companies Inc.1	2,286		123,787
MPS Group Inc.1	11,131		123,777
Applera Corp. - Celera Genomics Group1	8,478		123,016
PETCO Animal Supplies Inc.1	4,353		122,668
Sybron Dental Specialties Inc.1	4,501		122,652
UnitedGlobalCom Inc. Class A1	14,415		122,383
Unit Corporation1	4,452		122,074

SCHEDULES OF INVESTMENTS 21

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 INDEX FUND

March 31, 2004

Security	Shares	Value
Maverick Tube Corp.1	5,144	$	121,141
Silicon Storage Technology Inc.1	9,326		120,678
Gables Residential Trust	3,329		120,676
Flowserve Corp.1	5,751		120,483
Lexar Media Inc.1	7,259		120,209
InfoSpace Inc.1	3,091		120,147
Nextel Partners Inc. Class A1	9,451		119,650
Telik Inc.1	4,434		119,009
99 Cents Only Stores1	4,873		118,999
Thomas & Betts Corp.	5,442		118,744
Hecla Mining Co.1	14,114		118,699
Wolverine World Wide Inc.	4,915		118,599
Newcastle Investment Corp.	3,513		118,388
Capital Automotive	3,352		118,359
Kellwood Co.	3,005		117,946
Wynn Resorts Ltd.1	3,369		117,915
TrustCo Bank Corp. NY	8,745		117,708
Kroll Inc.1	4,382		117,657
Millennium Chemicals Inc.	7,867		117,533
Reinsurance Group of America Inc.	2,860		117,174
Acuity Brands Inc.	4,904		117,108
Perot Systems Corp. Class A1	8,804		117,093
Kronos Inc.1	3,587		116,685
TriQuint Semiconductor Inc.1	15,955		116,472
Hercules Inc.1	10,142		116,430
Thor Industries Inc.	4,334		116,411
Unova Inc.1	5,381		116,283
Texas Regional Bancshares Inc. Class A	2,729		116,119
Bio-Rad Laboratories Inc. Class A1	2,057		115,953
Alkermes Inc.1	7,251		115,943
American Financial Group Inc.	3,879		115,711
American National Insurance Co.	1,291		115,532
Minerals Technologies Inc.	2,023		115,513
Tootsie Roll Industries Inc.	3,153		115,268
USF Corp.	3,368		115,253
Nordson Corp.	3,075		115,189
R&G Financial Corp. Class B	3,331		115,053
Brandywine Realty Trust	3,766		115,051
Trinity Industries Inc.	4,128		114,758
CAL Dive International Inc.1	4,427		114,349
InterDigital Communications Corp.1	6,536		114,249
Fred’s Inc.	4,688		113,778
Tupperware Corp.	6,348		113,058
Adaptec Inc.1	12,903		113,030
Matthews International Corp. Class A	3,403		112,980
Payless ShoeSource Inc.1	8,079		112,783
F5 Networks Inc.1	3,330		112,720
Silicon Valley Bancshares1	3,474		112,697
Federal Signal Corp.	5,677		112,688
Parametric Technology Corp.1	24,870		112,412
Steel Dynamics Inc.1	4,534		112,353
Gartner Inc. Class A1	9,638		112,283
Senior Housing Properties Trust	5,750		112,125
Philadelphia Consolidated Holding Corp.1	1,933		112,114
ILEX Oncology Inc.1	4,685		112,065
Wintrust Financial Corp.	2,304		112,044
Allegheny Technologies Inc.	9,233		111,719
GATX Corp.	5,024		111,382
Washington Group International Inc.1	3,042		111,368
Marvel Enterprises Inc.1	5,793		111,168
RSA Security Inc.1	5,914		111,124
CMGI Inc.1	45,355		111,120
Aquila Inc.1	23,547		110,906
Donnelley (R.H.) Corp.1	2,372		110,772
FileNET Corp.1	4,147		110,518
US Oncology Inc.1	7,466		110,347
Lincoln Electric Holding Inc.	3,919		110,320
Harland (John H.) Co.	3,536		110,040
ADVO Inc.	3,413		109,967
Jarden Corp.1	3,093		109,832
Avista Corp.	5,797		109,679
Ralcorp Holdings Inc.1	3,603		109,639
Brooks Automation Inc.1	5,209		109,285
Delta & Pine Land Co.	4,377		109,206
United Rentals Inc.1	6,131		108,948
Selective Insurance Group Inc.	3,095		108,542
Brookline Bancorp Inc.	6,795		108,380
Scientific Games Corp. Class A1	5,788		108,351
Kilroy Realty Corp.	3,045		108,097
AVX Corp.	6,549		107,993
Werner Enterprises Inc.	5,694		107,901

22 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 INDEX FUND

March 31, 2004

Security	Shares	Value
Intergraph Corp.1	4,453	$	107,674
Provident Financial Services Inc.	5,757		107,598
United Natural Foods Inc.1	2,234		107,433
Albemarle Corp.	3,695		107,155
MacDermid Inc.	3,045		107,154
NDCHealth Corp.	3,938		106,917
Airtran Holdings Inc.1	8,988		106,777
Moog Inc. Class A1	3,127		106,693
Rayovac Corp.1	3,701		105,849
American Home Mortgage Investment Corp.	3,675		105,840
Post Properties Inc.	3,670		105,696
Instinet Group Inc.1	14,992		105,694
Commercial Net Lease Realty Inc.	5,328		105,228
Sierra Pacific Resources1	14,218		105,213
Navigant Consulting Co.1	5,200		105,196
St. Mary Land & Exploration Co.	3,145		105,137
First Commonwealth Financial Corp.	7,113		105,130
Chemical Financial Corp.	2,928		105,027
Men’s Wearhouse Inc. (The)1	3,951		104,978
CSG Systems International Inc.1	6,108		104,935
Lattice Semiconductor Corp.1	12,002		104,777
Owens & Minor Inc.	4,141		104,767
Swift Transportation Co. Inc.1	6,098		104,703
Knight Trading Group Inc.1	8,254		104,496
LandAmerica Financial Group Inc.	2,308		104,460
Western Gas Resources Inc.	2,053		104,395
Nabi Biopharmaceuticals1	6,707		104,294
InVision Technologies Inc.1	2,097		104,158
UMB Financial Corp.	2,052		104,036
CommScope Inc.1	6,245		103,979
Cost Plus Inc.1	2,490		103,957
Southwestern Energy Co.1	4,305		103,837
Seacoast Financial Services Corp.	3,094		103,649
Cumulus Media Inc. Class A1	5,171		103,368
Waypoint Financial Corp.	3,849		103,230
Anixter International Inc.	3,650		103,112
Ferro Corp.	3,941		103,057
Commonwealth Telephone Enterprises Inc.1	2,505		102,730
Dionex Corp.1	1,942		102,538
Diagnostic Products Corp.	2,366		102,448
OM Group Inc.1	3,370		102,448
Align Technology Inc.1	5,388		102,426
Inveresk Research Group Inc.1	3,595		102,170
Transaction Systems Architects Inc. Class A1	4,406		101,955
Choice Hotels International Inc.	2,278		101,918
Great Lakes Chemical Corp.	4,267		101,768
Insight Enterprises Inc.1	5,282		101,678
AtheroGenics Inc.1	4,440		101,543
Jack in the Box Inc.1	4,063		101,453
Spinnaker Exploration Co.1	2,817		101,187
Entertainment Properties Trust	2,472		101,130
Republic Bancorp Inc.	7,190		101,091
Delta Air Lines Inc.	12,741		100,909
LTX Corp.1	6,673		100,762
Yankee Candle Co. Inc. (The)1	3,644		100,502
Watson Wyatt & Co. Holdings1	3,970		100,203
BankUnited Financial Corp. Class A1	3,369		100,059
Aeroflex Inc.1	7,430		100,008
Rare Hospitality International Inc.1	3,602		99,956
Engineered Support Systems Inc.	2,047		99,873
Penn National Gaming Inc.1	3,469		99,803
FirstFed Financial Corp.1	2,163		99,779
Actuant Corp. Class A1	2,543		99,762
Select Medical Corp.	5,971		99,716
WellChoice Inc.1	2,702		99,704
Sports Authority Inc. (The)1	2,486		99,639
Alleghany Corp.1	403		99,637
Black Box Corp.	1,859		99,624
Hancock Holding Co.	3,214		99,505
Total System Services Inc.	4,712		99,282
First National Bankshares of Florida	5,644		99,165
Shuffle Master Inc.1	2,133		99,163
Fuller (H.B.) Co.	3,476		98,857
Talbots Inc. (The)	2,762		98,824
Continental Airlines Inc. Class B1	7,881		98,749
Rogers Corp.1	1,850		98,735
Georgia Gulf Corp.	3,262		98,349
NPS Pharmaceuticals Inc.1	3,443		98,298
Reliance Steel & Aluminum Co.	2,796		98,279

SCHEDULES OF INVESTMENTS 23

3Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 INDEX FUND

March 31, 2004

Security	Shares	Value
Hearst-Argyle Television Inc.	3,654	$	98,256
Sierra Health Services Inc.1	2,698		98,207
Hollinger International Inc.	4,956		98,129
Scholastic Corp.1	3,599		98,073
Wind River Systems Inc.1	8,855		98,025
Lennox International Inc.	5,282		97,981
FactSet Research Systems Inc.	2,302		97,973
Jones Lang LaSalle Inc.1	3,810		97,955
Cleco Corp.	5,140		97,814
American Pharmaceutical Partners Inc.1	2,076		97,447
Endo Pharmaceuticals Holdings Inc.1	3,985		97,314
THQ Inc.1	4,805		97,205
Kansas City Southern Industries Inc.1	6,972		96,911
Northwest Natural Gas Co.	3,094		96,687
Flowers Foods Inc.	3,680		96,563
KV Pharmaceuticals Co.1	3,924		96,373
Macrovision Corp.1	5,140		96,015
Liberty Corp.	2,072		95,871
Headwaters Inc.1	3,721		95,332
ProAssurance Corp.1	2,722		95,270
MICROS Systems Inc.1	2,110		95,266
Microsemi Corp.1	6,960		95,213
Resources Connection Inc.1	2,157		95,165
Cabot Microelectronics Corp.1	2,251		95,082
American Management Systems Inc.1	4,945		94,944
S&T Bancorp Inc.	3,154		94,809
CONMED Corp.1	3,201		94,558
Openwave Systems Inc.1	7,075		94,381
Tekelec1	5,686		94,331
CVB Financial Corp.	4,541		94,271
Texas Industries Inc.	2,599		93,954
Argosy Gaming Co.1	2,640		93,852
eFunds Corp.1	5,718		93,775
Redwood Trust Inc.	1,502		93,379
Glimcher Realty Trust	3,443		93,305
Province Healthcare Co.1	5,855		93,095
Fossil Inc.1	2,791		93,080
Sterling Financial Corp. (Washington)1	2,523		93,074
Provident Bankshares Corp.	2,960		92,885
United Defense Industries Inc.1	2,921		92,859
Granite Construction Inc.	3,903		92,774
Manitowoc Co. Inc. (The)	3,134		92,704
Sonus Networks Inc.1	24,942		92,535
Trust Co. of New Jersey (The)	2,217		92,028
Charming Shoppes Inc.1	11,803		91,945
Keane Inc.1	5,827		91,717
SafeNet Inc.1	2,441		91,634
Eon Labs Inc.1	1,365		91,564
eResearch Technology Inc.1	3,259		91,415
First Citizens BancShares Inc. Class A	741		91,143
Coherent Inc.1	3,464		91,069
NetIQ Corp.1	6,514		90,935
Cox Radio Inc. Class A1	4,256		90,653
AMCORE Financial Inc.	3,040		90,562
Saxon Capital Inc.1	3,184		90,457
Investment Technology Group Inc.1	5,907		90,377
Micrel Inc.1	6,765		90,313
Flagstar Bancorp Inc.	3,520		90,288
Sensient Technologies Corp.	4,832		90,213
Cabot Oil & Gas Corp.	2,946		90,030
Southwest Gas Corp.	3,827		89,552
Vintage Petroleum Inc.	6,108		89,543
Curtiss-Wright Corp.	1,910		89,522
Superior Industries International Inc.	2,526		89,521
UniSource Energy Corp.	3,643		89,509
Cincinnati Bell Inc.1	21,988		89,491
Technitrol Inc.1	4,754		89,375
VISX Inc.1	4,568		89,167
Boyd Gaming Corp.	3,893		89,111
Too Inc.1	4,253		89,100
Exar Corp.1	4,810		88,985
WebEx Communications Inc.1	2,987		88,804
Chiquita Brands International Inc.1	4,255		88,717
Priority Healthcare Corp. Class B1	4,167		88,715
Corporate Office Properties Trust	3,540		88,500
Capitol Federal Financial	2,463		88,422
Kos Pharmaceuticals Inc.1	2,168		88,324
Seacor Holdings Inc.1	2,146		88,158
Crompton Corp.	13,789		87,974
Silicon Image Inc.1	8,539		87,952
PSS World Medical Inc.1	7,853		87,875
Plexus Corp.1	4,932		87,740

24 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 INDEX FUND

March 31, 2004

Security	Shares	Value
Dick’s Sporting Goods Inc.1	1,508	$	87,675
Simpson Manufacturing Co. Inc.1	1,790		87,621
Aztar Corp.1	3,571		87,525
Advanced Medical Optics Inc.1	3,587		87,523
Plains Exploration & Production Co.1	4,695		87,515
Winnebago Industries Inc.	2,806		87,463
Colonial Properties Trust	2,136		87,149
NetFlix Inc.1	2,548		86,938
Lexington Corp. Properties Trust	3,988		86,899
Ariba Inc.1	30,807		86,876
Commercial Metals Co.	2,728		86,860
PanAmSat Corp.1	3,536		86,561
Power Integrations Inc.1	2,948		86,465
Stewart Enterprises Inc. Class A1	11,885		86,404
Albany International Corp. Class A	3,213		86,398
United Online Inc.1	5,182		86,332
Advanced Digital Information Corp.1	7,553		85,953
ValueClick Inc.1	7,951		85,871
NBT Bancorp Inc.	3,815		85,837
Catalina Marketing Corp.1	4,417		85,646
BOK Financial Corp.1	2,085		85,485
Carpenter Technology Corp.	2,597		85,389
Christopher & Banks Corp.	4,033		85,137
Warnaco Group Inc. (The)1	4,233		85,041
Alpharma Inc. Class A	4,334		84,990
Credence Systems Corp.1	7,148		84,918
MB Financial Inc.	2,175		84,803
United Community Banks Inc.	2,369		84,431
RLI Corp.	2,181		84,187
Zoran Corp.1	4,849		84,179
Brady Corp. Class A	2,210		84,157
Littelfuse Inc.1	2,260		84,072
Harleysville National Corp.	3,013		83,852
Hollywood Entertainment Corp.1	6,176		83,747
Vertex Pharmaceuticals Inc.1	8,888		83,725
Aeropostale Inc.1	2,306		83,616
Wilson Greatbatch Technologies Inc.1	2,296		83,299
Kaydon Corp.	3,025		83,278
Ryan’s Family Steak Houses Inc.1	4,862		83,189
Genlyte Group Inc. (The)1	1,484		83,163
Six Flags Inc.1	10,590		83,132
ProQuest Co.1	2,849		83,105
National Health Investors Inc.	2,698		83,098
USEC Inc.	9,799		82,802
Columbia Sportswear Co.1	1,493		82,772
ATMI Inc.1	3,144		82,750
Veritas DGC Inc.1	3,986		82,510
Impax Laboratories Inc.1	3,682		82,366
Sycamore Networks Inc.1	20,167		82,281
PalmOne Inc.1	3,850		82,236
Magnum Hunter Resources Inc.1	8,106		82,195
Arrow International Inc.	2,740		81,899
Stillwater Mining Co.1	5,214		81,860
McDATA Corp. Class A1	11,622		81,819
El Paso Electric Co.1	5,909		81,781
Extreme Networks Inc.1	11,339		81,754
First Charter Corp.	3,878		81,632
FTI Consulting Inc.1	4,896		81,567
Baldor Electric Co.	3,547		81,510
CH Energy Group Inc.	1,660		81,489
Monaco Coach Corp.	3,033		81,284
CUNO Inc.1	1,811		81,278
Oceaneering International Inc.1	2,652		80,753
Champion Enterprises Inc.1	7,615		80,719
Grey Wolf Inc.1	19,495		80,709
Casey’s General Store Inc.	4,853		80,560
Enzon Pharmaceuticals Inc.1	5,220		80,545
BankAtlantic Bancorp Inc. Class A	4,748		80,526
Quanex Corp.	1,895		80,519
Jacuzzi Brands Inc.1	8,572		80,405
Finish Line Inc. (The)1	2,170		80,247
Otter Tail Corp.	3,037		80,238
Westcorp Inc.	1,819		80,163
Checkpoint Systems Inc.1	4,236		80,060
Harmonic Inc.1	8,265		79,757
National Penn Bancshares Inc.	2,529		79,739
MFA Mortgage Investments Inc.	7,891		79,699
Medarex Inc.1	8,879		79,645
Ruddick Corp.	3,935		79,644
DSP Group Inc.1	3,089		79,480
Boston Private Financial Holdings Inc.	2,835		79,380
Heartland Express Inc.	3,483		79,343

SCHEDULES OF INVESTMENTS 25

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 INDEX FUND

March 31, 2004

Security	Shares	Value
ABM Industries Inc.	4,420	$	79,339
Entegris Inc.1	6,264		79,302
Imagistics International Inc.1	1,800		79,290
Internet Security Systems Inc.1	4,491		79,221
Sola International Inc.1	3,399		79,027
Regal Entertainment Group Class A	3,593		78,974
Brown Shoe Co. Inc.	2,166		78,907
Power-One Inc.1	7,109		78,626
Dime Community Bancshares	3,856		78,470
Price Communications Corp.1	4,997		78,403
USG Corp.1	4,473		78,233
Therasense Inc.1	2,893		77,995
NeighborCare Inc.1	3,208		77,794
RAIT Investment Trust	2,632		77,776
Corvis Corp.1	40,464		77,691
Veeco Instruments Inc.1	2,761		77,446
Interactive Data Corp.1	4,355		77,432
IHOP Corp.	2,248		77,421
Sun Communities Inc.	1,808		77,419
Armor Holdings Inc.1	2,336		77,322
EastGroup Properties Inc.	2,178		77,319
MSC Industrial Direct Co. Inc. Class A	2,580		77,271
American Italian Pasta Co. Class A	1,935		77,265
Tecumseh Products Co. Class A	1,834		77,211
WMS Industries Inc.1	2,488		77,128
Symyx Technologies Inc.1	2,685		76,898
G&K Services Inc. Class A	2,065		76,859
Harbor Florida Bancshares Inc.	2,653		76,778
Hutchinson Technology Inc.1	2,729		76,576
Lin TV Corp. Class A1	3,216		76,573
Viasys Healthcare Inc.1	3,369		76,207
Beverly Enterprises Inc.1	11,884		76,058
TIBCO Software Inc.1	9,307		76,038
Borland Software Corp.1	8,372		76,018
Kirby Corp.1	2,248		75,960
Heritage Property Investment Trust Inc.	2,438		75,822
Landry’s Restaurants Inc.	2,541		75,798
Alaska Air Group Inc.1	3,071		75,731
Ionics Inc.1	2,660		75,544
Stewart Information Services Corp.	1,919		75,417
Blockbuster Inc.	4,305		75,337
Helix Technology Corp.	3,104		75,272
Grey Global Group Inc.	109		75,210
Mid-America Apartment Communities Inc.	2,024		75,151
Cash America International Inc.	3,260		75,143
Hudson River Bancorp Inc.	3,644		75,066
Hanover Compressor Co.1	6,202		74,982
Advanced Neuromodulation Systems Inc.1	2,072		74,778
Integrated Silicon Solution Inc.1	4,214		74,756
JLG Industries Inc.	5,221		74,660
Sonic Automotive Inc.	2,980		74,649
Electro Scientific Industries Inc.1	3,168		74,575
Meritage Corp.1	1,000		74,250
Handleman Co.	3,101		74,238
Range Resources Corp.	6,103		74,029
CNA Financial Corp.1	2,685		73,999
Oxford Industries Inc.	1,602		73,996
DRS Technologies Inc.1	2,644		73,979
Shaw Group Inc. (The)1	6,800		73,712
Websense Inc.1	2,487		73,640
K-Swiss Inc. Class A	3,007		73,581
IDX Systems Corp.1	2,123		73,456
Manhattan Associates Inc.1	2,642		73,448
City Holding Co.	2,139		73,368
CARBO Ceramics Inc.	1,161		73,085
Progress Software Corp.1	3,044		73,026
Modine Manufacturing Co.	2,797		72,890
Houston Exploration Co.1	1,629		72,865
Keystone Property Trust	2,997		72,857
Schulman (A.) Inc.	3,704		72,784
EGL Inc.1	4,051		72,756
Newport Corp.1	4,348		72,699
CSK Auto Corp.1	4,013		72,675
Teledyne Technologies Inc.1	3,871		72,388
Digital River Inc.1	3,091		72,360
Arch Chemicals Inc.	2,561		72,297
Anworth Mortgage Asset Corp.	5,178		72,285
American Healthways Inc.1	2,955		72,161
Northwest Airlines Corp.1	7,126		72,044
Kulicke & Soffa Industries Inc.1	6,146		72,031

26 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 INDEX FUND

March 31, 2004

Security	Shares	Value
Journal Register Co.1	3,442	$	71,938
Longs Drug Stores Corp.	3,817		71,874
MKS Instruments Inc.1	2,985		71,670
Student Loan Corp.	462		71,615
InterVoice-Brite Inc.1	4,245		71,613
MTS Systems Corp.	2,587		71,582
Corus Bankshares Inc.	1,775		71,515
Connetics Corp.1	3,224		71,476
Kindred Healthcare Inc.1	1,421		71,476
Digital Insight Corp.1	3,446		71,401
Advent Software Inc.1	3,814		71,322
First Financial Bankshares Inc.	1,775		71,124
Denbury Resources Inc.1	4,208		70,947
Dollar Thrifty Automotive Group Inc.1	2,804		70,857
Southern Peru Copper Corp.	1,747		70,666
Umpqua Holdings Corp.	3,500		70,665
UICI1	4,778		70,523
Thoratec Corp.1	5,645		70,506
Gray Television Inc.	4,822		70,498
AmSurg Corp.1	3,104		70,481
Pinnacle Systems Inc.1	7,805		70,479
Horace Mann Educators Corp.	4,470		70,268
Connecticut Bankshares Inc.	1,352		70,250
Stage Stores Inc.1	1,810		70,029
ANSYS Inc.1	1,760		69,942
Winn-Dixie Stores Inc.	9,196		69,890
Summit Properties Inc.	2,930		69,881
Central Garden & Pet Co.1	1,936		69,696
Longview Fibre Co.	6,238		69,616
Photon Dynamics Inc.1	2,132		69,567
Net.B@nk Inc.	5,693		69,512
CONSOL Energy Inc.	2,588		69,358
Overseas Shipholding Group Inc.	1,900		69,350
Spartech Corp.	2,784		69,322
Incyte Corp.1	8,319		69,131
LaBranche & Co. Inc.	6,144		68,874
Inter-Tel Inc.	2,286		68,717
First Financial Bancorp	3,713		68,690
Bowne & Co. Inc.	4,014		68,639
Laclede Group Inc. (The)	2,261		68,508
Wesco Financial Corp.	177		68,499
Mindspeed Technologies Inc.1	10,479		68,428
Alabama National Bancorp	1,232		68,401
Secure Computing Corp.1	4,178		68,310
Priceline.com Inc.1	2,529		68,182
Cleveland-Cliffs Inc.1	1,040		68,047
Bandag Inc.	1,367		68,036
United States Cellular Corp.1	1,757		67,908
MCG Capital Corp.	3,357		67,778
AK Steel Holding Corp.1	11,545		67,769
Group 1 Automotive Inc.1	1,872		67,766
WD-40 Co.	1,936		67,760
Anthracite Capital Inc.	5,322		67,749
Quest Software Inc.1	4,141		67,705
Primus Telecommunications Group Inc.1	8,040		67,616
CIBER Inc.1	6,144		67,584
Brookfield Homes Corp.	1,920		67,373
Spherion Corp.1	6,581		67,324
Adolor Corp.1	4,479		67,319
Arkansas Best Corp.	2,512		67,296
ElkCorp	2,484		67,292
School Specialty Inc.1	1,888		67,156
Woodward Governor Co.	1,053		67,118
Steelcase Inc. Class A	5,161		67,093
Sovran Self Storage Inc.	1,605		67,041
Comstock Resources Inc.1	3,371		66,982
Odyssey Healthcare Inc.1	3,545		66,823
Pilgrim’s Pride Corp.	2,976		66,752
American Medical Systems Holdings Inc.1	2,515		66,647
Tetra Technologies Inc.1	2,550		66,632
Arris Group Inc.1	7,240		66,608
Transmeta Corp.1	16,800		66,528
Labor Ready Inc.1	4,916		66,464
Wabash National Corp.1	2,816		66,458
Mid-State Bancshares	2,808		66,409
Salix Pharmaceuticals Ltd.1	2,285		66,311
Harleysville Group Inc.	3,558		66,250
Knight Transportation Inc.1	2,762		66,233
Wausau-Mosinee Paper Corp.	4,698		66,195
Equity One Inc.	3,441		66,136

SCHEDULES OF INVESTMENTS 27

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 INDEX FUND

March 31, 2004

Security	Shares	Value
MAXIMUS Inc.1	1,888	$	66,080
Mine Safety Appliances Co.	2,329		66,050
Ventana Medical Systems Inc.1	1,610		65,946
PS Business Parks Inc.	1,421		65,863
Anchor BanCorp Wisconsin Inc.	2,577		65,842
Independent Bank Corp. (Michigan)	2,362		65,805
Texas Genco Holdings Inc.	1,838		65,709
Hewitt Associates Inc. Class A1	2,051		65,653
ESCO Technologies Inc.1	1,422		65,583
Pixelworks Inc.1	3,812		65,300
Centene Corp.1	2,133		65,248
Unizan Financial Corp.	2,625		65,179
Select Comfort Corp.1	2,362		65,168
Cornerstone Realty Income Trust Inc.	6,969		65,160
Sandy Spring Bancorp Inc.	1,796		65,159
Mercury Computer Systems Inc.1	2,544		64,872
Florida East Coast Industries Inc.	1,808		64,763
Esterline Technologies Corp.1	2,606		64,759
Aaron Rents Inc.	2,601		64,739
Nu Skin Enterprises Inc. Class A	3,207		64,621
Sotheby’s Holdings Inc. Class A1	5,024		64,558
MicroStrategy Inc. Class A1	1,211		64,546
Ocular Sciences Inc.1	2,214		64,538
M/I Schottenstein Homes Inc.	1,365		64,537
Frontier Financial Corp.	1,876		64,516
UIL Holdings Corp.	1,339		64,500
PolyOne Corp.1	9,671		64,312
TierOne Corp.	2,727		64,057
S1 Corp.1	8,398		63,825
MGE Energy Inc.	2,065		63,705
Community Bank System Inc.	1,376		63,681
United Surgical Partners International Inc.1	1,874		63,604
Integra LifeSciences Holdings Corp.1	2,077		63,598
TBC Corp.1	2,164		63,557
WesBanco Inc.	2,092		63,492
Gold Bancorp Inc.	3,887		63,358
EMCOR Group Inc.1	1,724		63,271
FuelCell Energy Inc.1	4,665		63,257
CoStar Group Inc.1	1,714		63,229
Sunrise Senior Living Inc.1	1,762		63,168
Informatica Corp.1	7,346		63,102
Orbital Sciences Corp.1	5,031		63,038
Cirrus Logic Inc.1	8,312		63,005
Alliance Data Systems Corp.1	1,876		62,940
BARRA Inc.	1,797		62,877
Wright Medical Group Inc.1	2,043		62,720
Kelly Services Inc. Class A	2,118		62,714
Roto-Rooter Inc.	1,240		62,682
Viasat Inc.1	2,510		62,449
Glacier Bancorp Inc.	1,936		62,436
Anteon International Corp.1	2,152		62,171
Enterasys Networks Inc.1	24,571		62,165
Cyberonics Inc.1	2,593		62,128
Bright Horizons Family Solutions Inc.1	1,317		62,110
Watsco Inc.	2,141		62,089
PolyMedica Corp.	2,315		62,088
Epicor Software Corp.1	4,676		62,051
Cambrex Corp.	2,305		62,004
Sterling Financial Corp. (Pennsylvania)	2,408		61,910
PFF Bancorp Inc.	1,621		61,809
Frontier Oil Corp.	3,183		61,687
FEI Co.1	2,821		61,639
Nuevo Energy Co.1	1,888		61,473
Gardner Denver Inc.1	2,267		61,390
InterMune Inc.1	3,147		61,304
Griffon Corp.1	2,837		61,279
Photronics Inc.1	3,453		61,256
Multimedia Games Inc.1	2,474		61,207
Mykrolis Corp.1	4,287		61,133
Quantum Corp.1	16,521		61,128
Alfa Corp.	4,489		61,095
Actel Corp.1	2,699		61,078
Universal Compression Holdings Inc.1	1,856		61,062
Nuveen Investments Inc. Class A	2,182		60,791
C-COR.net Corp.1	4,334		60,763
Silicon Graphics Inc.1	23,918		60,752
Gymboree Corp.1	3,622		60,741
Haemonetics Corp.1	1,929		60,667
Global Imaging Systems Inc.1	1,822		60,527
deCODE genetics Inc.1	5,704		60,462
South Jersey Industries Inc.	1,474		60,301

28 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 INDEX FUND

March 31, 2004

Security	Shares	Value
Empire District Electric Co. (The)	2,659	$	60,226
Tenneco Automotive Inc.1	4,734		60,074
Possis Medical Inc.1	2,131		59,945
Pacer International Inc.1	2,718		59,905
Genta Inc.1	5,697		59,818
Financial Federal Corp.1	1,788		59,773
Interstate Bakeries Corp.	5,250		59,692
Transkaryotic Therapies Inc.1	3,475		59,631
Sterling Bancshares Inc.	4,428		59,291
Genesco Inc.1	2,552		59,155
Sapient Corp.1	9,809		59,148
AMLI Residential Properties Trust	2,092		59,099
Koger Equity Inc.	2,516		59,051
Ultratech Inc.1	2,532		59,021
WFS Financial Inc.	1,360		58,915
FelCor Lodging Trust Inc.1	5,652		58,894
Merit Medical Systems Inc.1	2,720		58,861
Genesis Microchip Inc.1	3,504		58,727
Quanta Services Inc.1	8,269		58,545
LaSalle Hotel Properties	2,478		58,481
Berry Petroleum Co. Class A	2,140		58,379
Oriental Financial Group Inc.	1,831		58,317
Triumph Group Inc.1	1,760		58,168
Atrix Laboratories Inc.1	2,273		57,961
Universal Forest Products Inc.	1,876		57,893
Manufactured Home Communities Inc.	1,640		57,892
Noven Pharmaceuticals Inc.1	2,692		57,797
Korn/Ferry International1	3,600		57,600
Lone Star Technologies Inc.1	3,257		57,551
Silgan Holdings Inc.1	1,257		57,483
Dendrite International Inc.1	3,575		57,200
Schweitzer-Mauduit International Inc.	1,768		57,106
Wabtec Corp.	4,010		57,102
Tuesday Morning Corp.1	1,657		57,100
Getty Realty Corp.	2,148		57,072
Swift Energy Co.1	3,025		57,021
Guitar Center Inc.1	1,532		56,898
Parkway Properties Inc.	1,216		56,848
Intuitive Surgical Inc.1	3,343		56,831
Nautilus Group Inc. (The)	3,602		56,731
Powerwave Technologies Inc.1	7,238		56,456
Penn Virginia Corp.	925		56,055
Belden Inc.	2,951		55,980
Identix Inc.1	9,686		55,975
Hain Celestial Group Inc.1	2,533		55,954
Phillips-Van Heusen Corp.	3,022		55,907
Tredegar Corp.	3,820		55,887
Rollins Inc.	2,168		55,869
First Community Bancorp	1,494		55,861
CIMA Labs Inc.1	1,775		55,788
Smith (A.O.) Corp.	1,927		55,787
Harvest Natural Resources Inc.1	3,813		55,708
KCS Energy Inc.1	5,202		55,661
Hawthorne Financial Corp.1	1,263		55,559
Ditech Communications Corp.1	3,332		55,544
West Corp.1	2,228		55,477
ScanSource Inc.1	1,157		55,467
Aspect Communications Corp.1	3,538		55,440
Sinclair Broadcast Group Inc. Class A1	4,432		55,400
Fidelity Bankshares Inc.	1,510		55,341
Bank Mutual Corp.	4,941		55,293
SERENA Software Inc.1	2,713		55,210
Superior Energy Services Inc.1	5,467		55,107
Pharmacopeia Inc.1	2,736		55,048
Encysive Pharmaceuticals Inc.1	5,337		54,864
Quicksilver Resources Inc.1	1,413		54,768
Jo-Ann Stores Inc.1	1,949		54,669
PAREXEL International Corp.1	3,056		54,611
Petroleum Development Corp.1	1,902		54,492
Chicago Mercantile Exchange Holdings Inc.	563		54,465
Regal-Beloit Corp.	2,724		54,426
West Pharmaceutical Services Inc.	1,454		54,380
E.piphany Inc.1	7,518		54,280
Magma Design Automation Inc.1	2,595		54,261
Eclipsys Corp.1	4,024		54,244
ArthroCare Corp.1	2,340		54,077
Park Electrochemical Corp.	2,119		53,611
RealNetworks Inc.1	8,935		53,610
First Merchants Corp.	2,229		53,607
Komag Inc.1	2,908		53,507
Discovery Laboratories Inc.1	4,373		53,307

SCHEDULES OF INVESTMENTS 29

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 INDEX FUND

March 31, 2004

Security	Shares	Value
Regeneron Pharmaceuticals Inc.1	3,922	$	53,261
Cray Inc.1	8,010		53,106
eSpeed, Inc.1	2,533		53,092
ESS Technology Inc.1	3,618		53,040
Community Trust Bancorp Inc.	1,607		53,031
Enzo Biochem Inc.1	3,144		52,913
URS Corp.1	1,836		52,840
Stride Rite Corp.	4,969		52,721
Central Pacific Financial Corp.	1,768		52,669
Safeguard Scientifics Inc.1	14,145		52,619
NCO Group Inc.1	2,251		52,606
CKE Restaurant Inc.1	5,308		52,549
Kyphon Inc.1	2,194		52,459
Methode Electronics Inc.	4,055		52,309
Sohu.com Inc.1	2,100		52,269
United Community Financial Corp.	4,007		52,211
U.S. Restaurant Properties Inc.	2,780		52,097
K2 Inc.1	3,246		52,033
Newpark Resources Inc.1	9,999		51,995
CTS Corp.	3,982		51,925
Aviall Inc.1	3,415		51,908
Schnitzer Steel Industries Inc. Class A	1,617		51,841
AMC Entertainment Inc.1	3,372		51,760
WCI Communities Inc.1	2,062		51,612
Steak n Shake Company (The)1	2,679		51,571
REMEC Inc.1	6,761		51,384
Speedway Motorsports Inc.	1,694		51,345
Vignette Corp.1	24,788		51,311
Movie Gallery Inc.	2,619		51,306
Russell Corp.	2,798		51,091
Applied Industrial Technologies Inc.	2,246		51,029
Manugistics Group Inc.1	7,441		50,971
Franklin Electric Co. Inc.	799		50,880
First Financial Holdings Inc.	1,702		50,873
NCI Building Systems Inc.1	2,166		50,814
Serologicals Corp.1	2,484		50,674
Alexion Pharmaceuticals Inc.1	2,131		50,633
First Republic Bank	1,313		50,629
Argonaut Group Inc.1	2,660		50,620
Cable Design Technologies Corp.1	5,338		50,604
Golden Telecom Inc.	1,487		50,603
SonicWALL Inc.1	5,650		50,398
First Sentinel Bancorp Inc.	2,378		50,295
Greif Inc. Class A	1,437		50,209
Lone Star Steakhouse & Saloon Inc.	1,715		50,061
California Water Service Group	1,768		50,017
IBERIABANK Corp.	849		49,964
First Financial Corp.	1,704		49,944
SuperGen Inc.1	3,895		49,856
Mediacom Communications Corp.1	6,213		49,828
Offshore Logistics Inc.1	2,159		49,765
BioMarin Pharmaceutical Inc.1	6,615		49,745
Suffolk Bancorp	1,449		49,628
Electronics Boutique Holdings Corp.1	1,684		49,442
Myriad Genetics Inc.1	3,047		49,422
Local Financial Corp.1	2,267		49,421
Fleetwood Enterprises Inc.1	4,020		49,366
United Auto Group Inc.	1,800		49,248
Arctic Cat Inc.	1,931		49,221
Lance Inc.	3,001		49,186
Consolidated Graphics Inc.1	1,277		49,101
Boca Resorts Inc. Class A1	2,813		49,087
Global Industries Ltd.1	8,384		49,046
Gaylord Entertainment Co.1	1,587		49,038
Simmons First National Corp. Class A	1,776		48,929
webMethods Inc.1	5,201		48,889
Tanger Factory Outlet Centers Inc.	1,078		48,855
Insight Communications Co. Inc.1	4,880		48,800
Cell Genesys Inc.1	4,050		48,762
Datascope Corp.	1,387		48,739
United Therapeutics Inc.1	2,042		48,661
Plains Resource Inc.1	2,676		48,650
Independent Bank Corp. (Massachusetts)	1,604		48,617
Digene Corp.1	1,409		48,413
Kopin Corp.1	8,367		48,361
Cubic Corp.	1,860		48,360
Prime Hospitality Corp.1	4,246		48,319
Interwoven Inc1	4,844		48,295
Tyler Technologies Inc.1	4,971		48,268
Micromuse Inc.1	6,183		48,227
Pinnacle Entertainment Inc.1	3,487		48,121

30 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 INDEX FUND

March 31, 2004

Security	Shares	Value
Applied Films Corporation1	1,723	$	48,072
Administaff Inc.1	2,757		48,055
autobytel.com Inc.1	3,637		48,008
Cohu Inc.	2,573		47,986
Hibbet Sporting Goods Inc.1	1,258		47,980
CDI Corp.	1,486		47,968
Genesee & Wyoming Inc. Class A1	1,932		47,720
Accredited Home Lenders Holding Co.1	1,211		47,713
Stewart & Stevenson Services Inc.	3,258		47,632
Century Business Services Inc.1	9,699		47,622
Town & Country Trust (The)	1,750		47,600
Universal Health Realty Income Trust	1,410		47,517
ShopKo Stores Inc.1	3,249		47,500
EnPro Industries Inc.1	2,510		47,489
ScanSoft Inc.1	8,489		47,454
AAR Corp.1	3,863		47,438
Primedia Inc.1	17,519		47,301
Allegiant Bancorp Inc.	1,606		47,232
Weis Markets Inc.	1,397		47,149
Standard Microsystems Corp.1	1,768		47,100
CV Therapeutics Inc.1	3,112		47,085
Infinity Property & Casualty Corp.	1,498		47,082
Isle of Capri Casinos Inc.1	1,872		47,062
Robert Mondavi Corp. (The) Class A1	1,242		46,960
Tennant Co.	1,183		46,930
Triad Guaranty Inc.1	889		46,895
FIRSTFED AMERICA BANCORP INC.	1,680		46,822
Remington Oil & Gas Corp.1	2,370		46,808
Columbia Banking System Inc.	1,669		46,732
ChipPAC Inc. Class A1	5,900		46,669
Integra Bank Corp.	1,937		46,662
American States Water Co.	1,908		46,555
j2 Global Communications Inc.1	2,061		46,496
Old Second Bancorp Inc.	903		46,432
Stratex Networks Inc.1	9,764		46,379
Oakley Inc.	3,125		46,375
Glenborough Realty Trust Inc.	2,071		46,287
Retek Inc.1	6,118		46,252
JDA Software Group Inc.1	3,177		46,225
Agile Software Corp.1	5,268		46,095
Paxar Corp.1	3,124		46,079
Dress Barn Inc.1	2,626		46,060
First Federal Capital Corp.	2,161		46,008
Irwin Financial Corp.	1,700		45,866
Insituform Technologies Inc. Class A1	2,934		45,858
Trammell Crow Co.1	3,259		45,724
O’Charley’s Inc.1	2,505		45,716
Old Dominion Freight Line Inc.1	1,356		45,697
Advanced Energy Industries Inc.1	2,237		45,612
7-Eleven Inc.1	3,003		45,556
PTEK Holdings Inc.1	4,957		45,555
Zenith National Insurance Corp.	1,161		45,511
AMCOL International Corp.	2,608		45,510
Main Street Banks Inc.	1,664		45,494
OraSure Technologies Inc.1	4,385		45,429
21st Century Insurance Group	3,151		45,374
New England Business Service Inc.	1,340		45,359
Intermagnetics General Corp.1	1,710		45,315
Tanox Inc.1	3,041		45,280
RC2 Corp.1	1,646		45,265
Palm Harbor Homes Inc.1	2,157		45,211
International Multifoods Corp.1	1,828		45,188
Bedford Property Investors Inc.	1,483		45,187
Entravision Communications Corp.1	5,031		45,128
Washington Trust Bancorp Inc.	1,709		45,118
Deltic Timber Corp.	1,271		45,095
RadiSys Corp.1	2,156		45,060
Investors Real Estate Trust	4,588		45,054
StarTek Inc.	1,239		45,025
Chattem Inc.1	1,737		45,023
Biosite Inc.1	1,408		45,014
InFocus Corp.1	4,810		44,973
Interface Inc. Class A1	5,656		44,965
SOURCECORP Inc.1	1,695		44,918
Kaman Corp. Class A	3,008		44,909
Equity Inns Inc.	4,880		44,896
Triarc Companies Inc. Class B	4,087		44,794
Inspire Pharmaceuticals Inc.1	3,456		44,513
Lithia Motors Inc. Class A	1,607		44,434
Opsware Inc.1	5,869		44,370
NACCO Industries Inc.	538		44,331
Alderwoods Group Inc.1	4,260		44,304

SCHEDULES OF INVESTMENTS 31

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 INDEX FUND

March 31, 2004

Security	Shares	Value
Itron Inc.1	2,379	$	44,273
Input/Output Inc.1	5,704		44,206
Jill (J.) Group Inc. (The)1	2,153		44,180
Parker Drilling Co.1	10,587		44,148
Cepheid Inc.1	4,732		44,055
Vector Group Ltd.	2,588		43,996
Exelixis Inc.1	5,143		43,973
Hooper Holmes Inc.	7,040		43,930
Burlington Coat Factory Warehouse Corp.	2,210		43,758
Haverty Furniture Companies Inc.	2,055		43,730
State Auto Financial Corp.	1,693		43,696
Integrated Electrical Services Inc.1	3,886		43,679
Papa John’s International Inc.1	1,290		43,654
American Woodmark Corp.	656		43,598
Hologic Inc.1	2,153		43,598
Heidrick & Struggles International Inc.1	1,820		43,553
Dot Hill Systems Corp.1	4,345		43,537
CCBT Financial Companies Inc.	1,179		43,505
Ocwen Financial Corp.1	4,499		43,505
Lawson Software Inc.1	5,234		43,442
Prima Energy Corp.1	1,257		43,429
Harris Interactive Inc.1	5,150		43,414
Kramont Realty Trust	2,296		43,394
Artisan Components Inc.1	1,944		43,332
Central Parking Corp.	2,156		43,292
Duane Reade Inc.1	2,549		43,180
Sterling Bancorp (New York)	1,481		43,171
Audiovox Corp. Class A1	2,158		43,160
Encore Wire Corp.1	1,158		43,135
Mattson Technology Inc.1	3,604		43,104
RailAmerica Inc.1	3,576		43,091
LeapFrog Enterprises Inc.1	2,220		42,957
Gevity HR Inc.	1,469		42,895
Rock-Tenn Co. Class A	2,974		42,885
PrivateBancorp Inc.	831		42,863
Walter Industries Inc.	3,587		42,829
Chesapeake Corp.	1,794		42,823
Meristar Hospitality Corp.1	6,160		42,812
General Communication Inc. Class A1	4,693		42,706
CTI Molecular Imaging Inc.1	2,927		42,705
William Lyon Homes Inc.1	458		42,686
C&D Technologies Inc.	2,551		42,627
Rofin-Sinar Technologies Inc.1	1,428		42,626
Immucor Inc.1	2,347		42,528
ARIAD Pharmaceuticals Inc.1	4,492		42,494
aQuantive, Inc.1	4,426		42,490
Thomas Industries Inc.	1,347		42,431
Orthodontic Centers of America Inc.1	5,366		42,391
Capital City Bank Group Inc.	1,024		42,240
GenCorp. Inc.	3,900		42,237
Symmetricom Inc.1	4,704		42,195
West Marine Inc.1	1,323		42,138
ExpressJet Holdings Inc.1	3,370		41,923
FBL Financial Group Inc. Class A	1,490		41,869
Sharper Image Corp.1	1,285		41,865
Zoll Medical Corp.1	1,041		41,619
Cubist Pharmaceuticals Inc.1	4,522		41,602
Omnicell Inc.1	2,100		41,601
Albany Molecular Research Inc.1	2,616		41,568
Tompkins Trustco Inc.	913		41,542
EDO Corp.	1,724		41,514
Kimball International Inc. Class B	2,649		41,510
West Coast Bancorp	1,822		41,451
Bel Fuse Inc. Class B	1,263		41,351
Anaren Inc.1	2,617		41,296
1st Source Corp.	1,676		41,263
RTI International Metals Inc.1	2,606		41,253
TiVo Inc.1	4,635		41,205
Artesyn Technologies Inc.1	4,328		41,203
Agilysys Inc.	3,455		41,114
Coinstar Inc.1	2,590		41,103
Genesis HealthCare Corp.1	1,688		41,103
Asyst Technologies Inc.1	4,980		40,985
Alaris Medical Systems Inc.1	2,193		40,899
U.S.I. Holdings Corp.1	2,752		40,702
RehabCare Group Inc.1	2,047		40,694
Children’s Place Retail Stores Inc. (The)1	1,311		40,602
Russ Berrie & Co. Inc.	1,160		40,600
Big 5 Sporting Goods Corp.1	1,607		40,577
Frontier Airlines Inc.1	3,893		40,565

32 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 INDEX FUND

March 31, 2004

Security	Shares	Value
Saul Centers Inc.	1,326	$	40,509
Jakks Pacific Inc.1	2,699		40,485
Per-Se Technologies Inc.1	3,614		40,477
Universal American Financial Corp.1	3,373		40,476
BioLase Technology Inc.1	2,301		40,291
Isis Pharmaceuticals Inc.1	5,190		40,274
Xicor Inc.1	2,644		40,242
Portfolio Recovery Associates Inc.1	1,490		40,141
Verity Inc.1	2,927		40,012
Holly Corp.	1,254		39,952
SureWest Communications	1,490		39,917
Forward Air Corp.1	1,212		39,838
Pre-Paid Legal Services Inc.1	1,627		39,829
USB Holding Co. Inc.	1,622		39,804
Correctional Properties Trust	1,288		39,670
At Road Inc.1	3,231		39,644
Barnes Group Inc.	1,420		39,604
Presidential Life Corp.	2,641		39,562
Presstek Inc.1	3,619		39,375
LabOne Inc.1	1,293		39,307
SeaChange International Inc.1	2,560		39,168
Advanta Corp. Class B	2,358		39,143
Landauer Inc.	931		39,102
HomeStore Inc.1	9,228		39,034
Century Aluminum Co.1	1,379		38,929
National Western Life Insurance Co. Class A1	263		38,869
Analogic Corp.	854		38,848
Hanger Orthopedic Group Inc.1	2,151		38,826
Gentiva Health Services Inc.1	2,487		38,524
Hydril1	1,469		38,488
Banner Corp.	1,313		38,458
W-H Energy Services Inc.1	2,655		38,418
ValueVision Media Inc. Class A1	2,499		38,360
Wireless Facilities Inc.1	3,481		38,326
Casual Male Retail Group Inc.1	3,703		38,289
Lionbridge Technologies Inc.1	3,928		38,219
Daktronics Inc.1	1,692		38,188
Geron Corp.1	4,048		38,051
Octel Corp.	1,273		37,999
Oil States International Inc.1	2,819		37,887
Monolithic System Technology Inc.1	2,823		37,800
Marcus Corp.	2,176		37,754
Omega Financial Corp.	1,032		37,732
Spanish Broadcasting System Inc. Class A1	3,607		37,693
VistaCare Inc. Class A1	1,394		37,666
SCS Transportation Inc.1	1,719		37,474
First Horizon Pharmaceutical Corp.1	2,372		37,383
World Acceptance Corp.1	1,914		37,342
Able Laboratories Inc.1	1,911		37,322
Siliconix Inc.1	800		37,304
GameStop Corp.1	2,058		37,085
ICU Medical Inc.1	1,217		36,960
First Community Bancshares Inc.	1,207		36,862
CompuCredit Corp.1	1,742		36,826
Odyssey Re Holdings Corp.	1,363		36,801
Cell Therapeutics Inc.1	4,347		36,776
Praecis Pharmaceuticals Inc.1	6,209		36,695
Ramco-Gershenson Properties Trust	1,300		36,660
North Pittsburgh Systems Inc.	1,820		36,637
Caraustar Industries Inc.1	3,136		36,534
Iomega Corp.	6,534		36,525
MatrixOne Inc.1	5,022		36,460
infoUSA Inc.1	3,455		36,312
Northwest Bancorp Inc.	1,408		36,003
J&J Snack Foods Corp.1	796		35,963
Pegasus Solutions Inc.1	3,079		35,963
NUI Corp.	2,126		35,951
California Pizza Kitchen Inc.1	1,795		35,900
AC Moore Arts & Crafts Inc.1	1,329		35,883
SonoSite Inc.1	1,682		35,877
Royal Gold Inc.	2,022		35,810
Standex International Corp.	1,326		35,802
American Medical Security Group Inc.1	1,339		35,765
Kadant Inc.1	1,713		35,716
Community Banks Inc.	1,146		35,709
Energy Partners Ltd.1	2,669		35,631
Ceradyne Inc.1	985		35,608
Flushing Financial Corp.	1,963		35,530
Cato Corp. Class A	1,768		35,501
Libbey Inc.	1,367		35,446

SCHEDULES OF INVESTMENTS 33

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 INDEX FUND

March 31, 2004

Security	Shares	Value
Cross Country Healthcare Inc.1	2,128	$	35,431
Peoples Holding Co.	1,051		35,419
Packeteer Inc.1	2,682		35,402
Synaptics Inc.1	2,017		35,378
Valhi Inc.	2,803		35,374
Ethyl Corp.1	1,782		35,301
Ryerson Tull Inc.	2,693		35,251
Tower Automotive Inc.1	6,986		35,209
FalconStor Software Inc.1	4,759		35,207
SRA International Inc. Class A1	953		35,204
Advisory Board Co. (The)1	963		35,198
Atlantic Coast Airlines Holdings Inc.1	4,833		35,136
Ameristar Casinos Inc.1	1,040		35,099
DIMON Inc.	4,942		35,088
United Fire & Casualty Co.	829		35,041
FreeMarkets Inc.1	4,255		35,019
Metris Companies Inc.1	4,349		34,966
American West Holdings Corp. Class B1	3,650		34,784
Bradley Pharmaceuticals Inc.1	1,381		34,774
Alexander’s Inc.1	217		34,720
Epix Medical Inc.1	1,673		34,715
eCollege.com Inc.1	1,660		34,661
Oplink Communications Inc.1	13,802		34,643
Sturm Ruger & Co. Inc.	2,561		34,599
Bank of Granite Corp.	1,669		34,498
Valmont Industries Inc.	1,725		34,466
BSB Bancorp Inc.	892		34,431
Midas Inc.1	1,770		34,426
Molecular Devices Corp.1	1,825		34,383
Euronet Worldwide Inc.1	1,803		34,275
World Fuel Services Corp.	933		34,269
Southern Financial Bancorp Inc.	768		34,253
MRV Communications Inc.1	10,275		34,216
Hancock Fabrics Inc.	2,150		34,163
West Bancorporation	2,020		34,138
Gibraltar Steel Corp.	1,388		34,117
First Busey Corp. Class A	1,258		34,104
Topps Co. (The)	3,555		33,950
Astec Industries Inc.1	2,104		33,895
Second Bancorp Inc.	1,049		33,883
Resource America Inc. Class A	1,827		33,800
Gabelli Asset Management Inc. Class A	837		33,714
Urstadt Biddle Properties Inc. Class A	2,043		33,710
Finisar Corp.1	15,459		33,701
Brookstone Inc.1	1,224		33,672
Young Broadcasting Inc. Class A1	1,859		33,648
Nara Bancorp Inc.	1,135		33,619
SupportSoft Inc.1	3,053		33,614
SurModics Inc.1	1,684		33,528
OSI Systems Inc.1	1,676		33,520
Maxwell Shoe Co. Inc. Class A1	1,487		33,472
MemberWorks Inc.1	954		33,314
Vicor Corp.1	2,714		33,301
City Bank	957		32,950
Aspen Technology Inc.1	4,031		32,933
ON Semiconductor Corp.1	4,357		32,852
Laserscope1	1,659		32,815
CB Bancshares Inc.	469		32,778
Prosperity Bancshares Inc.	1,391		32,772
Intrado Inc.1	1,693		32,760
ManTech International Corp. Class A1	1,596		32,702
Tejon Ranch Co.1	884		32,673
KFx Inc.1	3,141		32,635
Goody’s Family Clothing Inc.	2,285		32,607
Peregrine Pharmaceuticals Inc.1	13,280		32,536
WSFS Financial Corp.	648		32,510
SS&C Technologies Inc.	1,338		32,473
Comtech Telecommunications Corp.1	1,398		32,434
First Indiana Corp.	1,601		32,260
Corixa Corp.1	5,030		32,206
Immunogen Inc.1	4,792		32,202
Applied Signal Technology Inc.	1,178		32,183
Overstock.com Inc.1	1,041		32,146
Pope & Talbot Inc.	1,868		32,111
DuPont Photomasks Inc.1	1,378		32,052
FindWhat.com1	1,478		31,999
Peoples Bancorp Inc.	1,149		31,954
Forrester Research Inc.1	1,685		31,931
Coldwater Creek Inc.1	1,497		31,916
Regeneration Technologies Inc.1	2,812		31,916
Vans Inc.1	2,151		31,835
II-VI Inc.1	1,302		31,834

34 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 INDEX FUND

March 31, 2004

Security	Shares	Value
Wellman Inc.	3,812	$	31,830
Credit Acceptance Corp.1	1,676		31,827
Skyline Corp.	824		31,782
POZEN Inc.1	2,299		31,772
Keystone Automotive Industries Inc.1	1,161		31,765
Ennis Business Forms Inc.	1,893		31,689
Candela Corp.1	2,310		31,670
Cascade Bancorp	1,378		31,653
Joseph A. Bank Clothiers Inc.1	878		31,608
Concur Technologies Inc.1	2,820		31,584
NeoPharm Inc.1	1,681		31,536
Echelon Corp.1	2,797		31,522
CorVel Corp.1	868		31,422
Churchill Downs Inc.	810		31,412
4Kids Entertainment Inc.1	1,404		31,407
TALX Corp.	1,425		31,279
Nash Finch Co.	1,320		31,258
Saga Communications Inc.1	1,676		31,257
Renaissance Learning Inc.	1,185		31,225
Seattle Genetics Inc.1	3,687		31,192
X-Rite Inc.	2,094		31,180
Time Warner Telecom Inc. Class A1	4,772		31,161
Intertan Inc.1	2,227		31,111
Westell Technologies Inc. Class A1	4,260		31,098
Apogee Enterprises Inc.	2,519		31,059
Calgon Carbon Corp.	4,026		31,000
Avanex Corp.1	7,165		30,953
Central Vermont Public Service Corp.	1,371		30,847
Glatfelter Co.	2,744		30,843
SpectraLink Corp.	1,806		30,756
SWS Group Inc.	1,717		30,751
Matria Healthcare Inc.1	1,214		30,738
Lindsay Manufacturing Co.	1,276		30,726
Atwood Oceanics Inc.1	863		30,714
Keithley Instruments Inc.	1,483		30,713
SY Bancorp Inc.	1,371		30,710
CuraGen Corp.1	4,920		30,701
SPSS Inc.1	1,670		30,561
McGrath Rentcorp	1,002		30,551
Stein Mart Inc.1	2,209		30,484
Pericom Semiconductor Corp.1	2,652		30,445
Red Robin Gourmet Burgers1	1,068		30,331
MSC.Software Corp.1	3,436		30,271
Building Materials Holdings Corp.	1,723		30,239
Excel Technology Inc.1	960		30,192
Elizabeth Arden Inc.1	1,427		30,138
Quaker City Bancorp Inc.	554		30,138
Kenneth Cole Productions Class A	883		30,110
Seacoast Banking Corp. of Florida	1,448		29,974
Valence Technology Inc.1	6,731		29,953
Great Southern Bancorp Inc.	609		29,920
Ameron International Corp.	886		29,885
Aftermarket Technology Corp.1	2,034		29,879
Baldwin & Lyons Inc. Class B	1,028		29,843
Central European Distribution Corp.1	921		29,785
Bei Technologies Inc.	1,320		29,647
OshKosh B’Gosh Inc. Class A	1,265		29,601
Interchange Financial Services Corp.	1,218		29,597
Riggs National Corp.	1,714		29,498
Brush Engineered Materials Inc.1	1,455		29,493
Coachmen Industries Inc.	1,768		29,490
AMN Healthcare Services Inc.1	1,607		29,488
Mesa Air Group Inc.1	3,568		29,472
Wild Oats Markets Inc.1	2,491		29,469
General Cable Corp.1	3,993		29,468
SciClone Pharmaceuticals Inc.1	5,439		29,371
Arrow Financial Corp.	982		29,323
Information Holdings Inc.1	1,421		29,301
Watts Industries Inc. Class A	1,252		29,284
TTM Technologies Inc.1	2,373		29,235
SCBT Financial Corp.	928		29,232
Levitt Corp. Class A1	1,193		29,229
Indevus Pharmaceuticals Inc.1	4,827		29,203
Farmers Capital Bank Corp.	834		29,190
Acadia Realty Trust	2,058		29,038
Mobile Mini Inc.1	1,677		29,012
First State Bancorp	940		29,008
Vail Resorts Inc.1	1,835		28,920
Cascade Natural Gas Corp.	1,326		28,894
CIRCOR International Inc.	1,277		28,860
Pathmark Stores Inc.1	3,615		28,848
Salem Communications Corp. Class A1	1,051		28,776

SCHEDULES OF INVESTMENTS 35

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 INDEX FUND

March 31, 2004

Security	Shares	Value
Trex Co. Inc.1	843	$	28,755
Magna Entertainment Corp. Class A1	4,769		28,709
Zygo Corp.1	1,834		28,665
Sanfilippo (John B.) & Son Inc.1	781		28,663
NS Group Inc.1	2,201		28,613
Peet’s Coffee & Tea Inc.1	1,341		28,563
Bombay Co. Inc. (The)1	3,634		28,527
Sanderson Farms Inc.	771		28,319
Volt Information Sciences Inc.1	1,158		28,302
ActivCard Corp.1	4,369		28,267
Union Bankshares Corp.	875		28,236
Keynote Systems Inc.1	2,193		28,224
Stanley Furniture Co. Inc.	723		28,074
Network Equipment Technologies Inc.1	2,812		28,064
Asbury Automotive Group Inc.1	1,621		28,060
Myers Industries Inc.	2,281		28,056
Cole National Corp.1	1,264		27,896
Altiris Inc.1	997		27,856
Virginia Financial Group Inc.	801		27,835
Capitol Bancorp Ltd.	1,026		27,805
Action Performance Companies Inc.	1,820		27,791
Midwest Banc Holdings Inc.	1,164		27,505
Plug Power Inc.1	3,562		27,499
Clark Inc.1	1,617		27,489
TeleTech Holdings Inc.1	4,379		27,413
Unifi Inc.1	6,185		27,400
Nuvelo Inc.1	2,180		27,381
Farmer Brothers Co.	76		27,360
Diversa Corp.1	3,086		27,342
Hypercom Corp.1	3,441		27,322
Buckeye Technologies Inc.1	2,636		27,309
Semitool Inc.1	2,139		27,251
SJW Corp.	786		27,243
SBS Technologies Inc.1	1,756		27,148
Encore Acquisition Co.1	980		27,146
Camden National Corp.	848		27,094
Zymogenetics Inc.1	1,746		26,976
Computer Network Technology Corp.1	3,369		26,952
Bank of the Ozarks Inc.	978		26,944
Avatar Holdings1	718		26,918
Antigenics Inc.1	2,525		26,916
Ixia1	2,483		26,866
Vital Sign Inc.	795		26,815
TRC Companies Inc.1	1,433		26,811
LSI Industries Inc.	2,201		26,764
Rent-Way Inc.1	3,040		26,752
Savient Pharmaceuticals Inc.1	7,045		26,630
Fisher Communications Inc.1	546		26,617
First Bancorp (North Carolina)	843		26,546
Drew Industries Inc.1	756		26,520
Lakeland Bancorp Inc.	1,609		26,484
Pulitzer Inc.	548		26,441
MarineMax Inc.1	992		26,357
A.S.V. Inc.1	864		26,266
EPIQ Systems Inc.1	1,602		26,241
BancFirst Corp.	472		26,168
United Industrial Corp.	1,380		26,137
Meridian Resource Corp. (The)1	4,338		26,115
Connecticut Water Service Inc.	922		26,093
Sonic Solutions Inc.1	1,376		26,089
Midway Games Inc.1	3,583		26,084
Mercantile Bank Corp.	734		26,057
Federal Agricultural Mortgage Corp.1	994		26,053
Netegrity Inc.1	3,065		26,052
Trimeris Inc.1	1,761		25,975
MasTec Inc.1	2,739		25,938
Middlesex Water Co.	1,253		25,937
Terayon Communication Systems Inc.1	7,570		25,889
DJ Orthopedics Inc.1	999		25,824
Concurrent Computer Corp.1	7,470		25,771
BioVeris Corp.1	2,173		25,750
Aceto Corp.	1,638		25,733
UniFirst Corp.	933		25,732
Penwest Pharmaceuticals Co.1	1,760		25,714
Herley Industries Inc.1	1,361		25,696
Aksys Ltd.1	3,946		25,610
WESCO International Inc.1	1,712		25,509
OMNOVA Solutions Inc.1	4,858		25,504
Bassett Furniture Industries Inc.	1,286		25,501
Steven Madden Ltd.1	1,277		25,489
MTR Gaming Group Inc.1	2,547		25,470
CT Communications Inc.	1,839		25,433

36 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 INDEX FUND

March 31, 2004

Security	Shares	Value
First Place Financial Corp.	1,402	$	25,432
Perini Corp.1	1,614		25,421
Macatawa Bank Corp.	912		25,417
Lexicon Genetics Inc.1	4,048		25,381
Cardiac Science Inc.1	5,800		25,346
Inverness Medical Innovations Inc.1	1,378		25,217
Allscripts Healthcare Solutions Inc.1	2,599		25,210
MEMC Electronics Materials Inc.1	2,754		25,199
Proxim Corp. Class A1	14,230		25,187
Exult Inc.1	4,041		25,175
TALK America Holdings Inc.1	2,971		25,164
Horizon Financial Corp.	1,365		25,157
LTC Properties Inc.	1,389		25,155
Entrust Inc.1	5,747		25,114
Hanmi Financial Corp.	943		25,074
Innkeepers USA Trust	2,742		25,062
TriZetto Group Inc. (The)1	3,228		25,017
Interpore International1	1,737		24,978
Orthologic Corp.1	3,221		24,963
TriPath Imaging Inc.1	2,724		24,952
Robbins & Myers Inc.	1,157		24,933
Rewards Network Inc.1	2,491		24,910
Courier Corp.	556		24,881
MRO Software Inc.1	2,138		24,844
Bone Care International Inc.1	1,242		24,840
USANA Health Sciences Inc.1	1,064		24,823
CCC Information Services Group Inc.1	1,395		24,789
Wet Seal Inc. Class A1	3,004		24,783
Southside Bancshares Inc.	1,329		24,733
Movado Group Inc.	824		24,671
Partners Trust Financial Group Inc.	719		24,597
Navigant International Inc.1	1,366		24,588
American Physicians Capital Inc.1	1,176		24,578
Dendreon Corp.1	1,848		24,578
1-800-FLOWERS.COM Inc.1	2,564		24,537
National Healthcare Corp.1	942		24,492
Tweeter Home Entertainment Group Inc.1	2,591		24,459
Charles River Associates Inc.1	744		24,393
Applica Inc.1	2,169		24,380
PennRock Financial Services Corp.	852		24,367
Blair Corp.	913		24,331
Commercial Capital Bancorp Inc.1	1,061		24,318
Stamps.com Inc.	4,054		24,283
LodgeNet Entertainment Corp.1	1,277		24,263
Peapack-Gladstone Financial Corp.	716		24,244
CSS Industries Inc.	728		24,206
Playboy Enterprises Inc. Class B1	1,725		24,185
Stoneridge Inc.1	1,676		24,168
Mission West Properties Inc.	1,821		24,128
NBC Capital Corp.	928		24,128
Sound Federal Bancorp Inc.	1,641		24,123
Republic Bancshares Inc.	801		24,056
Alliance Semiconductor Corp.1	3,149		23,964
Universal Display Corp.1	1,867		23,954
CFS Bancorp Inc.	1,633		23,923
Standard Commercial Corp.	1,285		23,837
Penn Engineering & Manufacturing Corp.	1,404		23,826
WatchGuard Technologies Inc.1	3,042		23,788
Skechers U.S.A. Inc. Class A1	1,811		23,742
Buckle Inc. (The)	819		23,718
HEICO Corp.	1,509		23,676
Capstead Mortgage Corp.	1,282		23,653
Concord Communications Inc.1	1,638		23,604
MBT Financial Corp.	1,371		23,581
PDF Solutions Inc.1	2,047		23,561
Midland Co. (The)	944		23,553
National Presto Industries Inc.	605		23,450
Rudolph Technologies Inc.1	1,247		23,356
Lawson Products Inc.	716		23,349
Universal Electronics Inc.1	1,768		23,338
Quaker Chemical Corp.	915		23,241
Steinway Musical Instruments Inc.1	724		23,204
Portal Software Inc.1	3,442		23,199
Gorman-Rupp Co. (The)	893		23,129
PDI Inc.1	914		23,115
Healthcare Services Group Inc.	1,405		23,112
Metrologic Instruments Inc.1	986		23,072
ITLA Capital Corp.1	464		22,949
Dura Automotive Systems Inc.1	1,724		22,912
Maxygen Inc.1	2,409		22,861

SCHEDULES OF INVESTMENTS 37

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 INDEX FUND

March 31, 2004

Security	Shares	Value
Closure Medical Corp.1	830	$	22,825
AsiaInfo Holdings Inc.1	3,484		22,716
M&F Worldwide Corp.1	1,654		22,643
FNB Corp. (Virginia)	822		22,630
Shore Bancshares Inc.	694		22,624
GulfMark Offshore Inc.1	1,439		22,607
Verso Technologies Inc.1	13,513		22,567
MainSource Financial Group Inc.	629		22,531
CardioDynamics International Corp.1	3,546		22,411
EMS Technologies Inc.1	1,159		22,380
Monro Muffler Brake Inc.1	892		22,291
Guilford Pharmaceuticals Inc.1	3,079		22,261
Kansas City Life Insurance Co.	519		22,208
Riviana Foods Inc.	796		22,208
Omega Healthcare Investors Inc.	2,027		22,033
Playtex Products Inc.1	3,182		21,988
Learning Tree International Inc.1	1,383		21,976
MTC Technologies Inc.1	875		21,971
OceanFirst Financial Corp.	881		21,963
Quidel Corp.1	3,328		21,932
Gladstone Capital Corp.	974		21,905
Great Lakes REIT Inc.	1,414		21,889
Tollgrade Communications Inc.1	1,370		21,865
GEO Group Inc. (The)1	950		21,850
Strattec Security Corp.1	345		21,845
Financial Institutions Inc.	950		21,774
SFBC International Inc.1	730		21,725
Provident Bancorp Inc.	1,828		21,662
Patriot Bank Corp.	733		21,462
Clayton Williams Energy Inc.1	617		21,410
Citizens First Bancorp Inc.	886		21,406
Boston Communications Group Inc.1	1,805		21,389
Nelson (Thomas) Inc.	783		21,313
Collins & Aikman Corp.1	3,875		21,312
Planar Systems Inc.1	1,495		21,274
Drugstore.com Inc.1	3,954		21,273
Central Coast Bancorp1	1,156		21,236
Berkshire Hills Bancorp Inc.	608		21,219
Charlotte Russe Holding Inc.1	1,159		21,210
Sequa Corp. Class A1	429		21,193
PC-Tel Inc.1	2,050		21,176
SeeBeyond Technology Corp.1	5,213		21,113
Hooker Furniture Corp.	908		21,102
Party City Corp.1	1,413		21,040
Angelica Corp.	921		21,026
Citizens Inc.1	2,819		21,002
Bankrate Inc.1	1,054		20,985
Bally Total Fitness Holding Corp.1	3,579		20,973
Digitas Inc.1	2,035		20,940
Global Power Equipment Group Inc.1	2,485		20,924
Source Interlink Companies Inc.1	1,673		20,913
Kirkland’s Inc.1	1,277		20,853
Hickory Tech Corp.	1,675		20,820
Grace (W.R.) & Co.1	6,664		20,792
Humboldt Bancorp	1,048		20,782
German American Bancorp	1,218		20,767
Conceptus Inc.1	1,738		20,717
Willow Grove Bancorp Inc.	1,157		20,710
Supertex Inc.1	1,240		20,683
Boykin Lodging Co.1	2,210		20,509
InterCept Inc.1	1,676		20,430
Nature’s Sunshine Products Inc.	1,373		20,375
MedQuist Inc.1	1,292		20,336
Matrix Service Co.1	1,501		20,309
Woodhead Industries Inc.	1,345		20,175
PRG-Schultz International Inc.1	4,582		20,161
State Bancorp Inc.	836		20,148
CNA Surety Corp.1	1,823		20,144
Insurance Auto Auctions Inc.1	1,382		20,080
Sipex Corp.1	3,178		20,021
Great Atlantic & Pacific Tea Co.1	2,571		19,900
Diodes Inc.1	912		19,891
Columbia Laboratories Inc.1	4,015		19,874
Hexcel Corp.1	2,728		19,860
Regent Communications Inc.1	3,047		19,836
Exact Sciences Corp.1	2,550		19,813
VIVUS Inc.1	3,261		19,794
World Wrestling Entertainment Inc.	1,369		19,782
Hudson Highland Group Inc.1	708		19,739
ABC Bancorp	1,041		19,727
NIC Inc.1	3,266		19,727
Stratasys Inc.1	1,036		19,715

38 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 INDEX FUND

March 31, 2004

Security	Shares	Value
Cascade Corp.	970	$	19,691
Standard Register Co. (The)	1,228		19,685
Coastal Bancorp Inc.	476		19,683
Net2Phone Inc.1	3,776		19,635
Luminex Corp.1	2,168		19,620
Staar Surgical Co.1	2,179		19,546
Associated Estates Realty Corp.	2,130		19,532
Aaon Inc.1	984		19,473
Winston Hotels Inc.	1,845		19,446
PalmSource Inc.1	1,069		19,424
American National Bankshares Inc.	791		19,403
Immunomedics Inc.1	4,786		19,383
Quality Systems Inc.1	426		19,353
Theragenics Corp.1	3,584		19,282
America’s Car-Mart Inc.1	715		19,269
Casella Waste Systems Inc. Class A1	1,322		19,222
QAD Inc.1	1,445		19,175
MAPICS Inc.1	2,353		19,012
Integral Systems Inc.	999		18,981
Capital Corporation of the West	485		18,978
Darling International Inc.1	5,576		18,958
Register.com1	3,193		18,903
Southwest Water Co.	1,380		18,865
Concord Camera Corp.1	3,003		18,859
Independence Holding Co.	610		18,794
Zhone Technologies Inc.1	4,799		18,668
Lufkin Industries Inc.	595		18,653
Ducommun Inc.1	797		18,626
Aphton Corp.1	3,954		18,584
PMA Capital Corp. Class A	3,052		18,526
Kana Software Inc.1	4,106		18,518
Lightbridge Inc.1	3,126		18,443
Pomeroy IT Solutions Inc.	1,270		18,415
TriCo Bancshares	492		18,391
Coca-Cola Bottling Co. Consolidated	360		18,378
DOV Pharmaceutical Inc.1	1,184		18,376
Lydall Inc.1	1,798		18,340
Stepan Co.	800		18,272
Kosan Biosciences Inc.1	1,722		18,202
Kensey Nash Corp.1	737		18,167
Provident Financial Holdings Inc.	699		18,160
CoBiz Inc.	888		18,142
MIM Corp.1	2,376		18,074
GSI Commerce Inc.1	1,779		18,057
Consolidated-Tomoka Land Co.	486		18,040
Virginia Commerce Bancorp Inc.1	603		18,030
Gulf Island Fabrication Inc.	885		18,001
Raven Industries Inc.	587		17,962
Resource Bankshares Corp.	550		17,930
Columbia Bancorp	582		17,926
Neoware Systems Inc.1	1,740		17,870
Electro Rent Corp.	1,768		17,786
Republic Bancorp Inc. Class A	914		17,786
Southwest Bancorp Inc.	1,026		17,750
Aether Systems Inc.1	3,817		17,749
Yardville National Bancorp	718		17,735
Tier Technologies Inc. Class B1	1,657		17,713
Western Sierra Bancorp1	403		17,712
First Oak Brook Bancshares Class A	580		17,696
Progenics Pharmaceuticals Inc.1	931		17,689
Star Scientific Inc.1	4,283		17,689
Ciphergen Biosystems Inc.1	2,119		17,651
Stellent Inc.1	2,362		17,644
First of Long Island Corp.	350		17,577
Lakeland Financial Corp.	520		17,560
Sauer-Danfoss Inc.	1,284		17,552
PennFed Financial Services Inc.	496		17,539
KVH Industries Inc.1	1,214		17,494
Avant Immunotherapeutics Inc.1	6,940		17,489
Gene Logic Inc.1	3,453		17,438
Three-Five Systems Inc.1	2,652		17,371
Mail-Well Inc.1	3,885		17,366
Computer Programs & Systems Inc.	913		17,347
CyberGuard Corp.1	1,761		17,346
iPayment Holdings Inc.1	519		17,262
PICO Holdings Inc.1	1,050		17,252
Palatin Technologies Inc.1	4,128		17,214
Quixote Corp.	816		17,160
GA Financial Inc.	486		17,034
Schawk Inc.	1,273		17,033
SBA Communications Corp.1	4,379		16,991
Massbank Corp.	427		16,982

SCHEDULES OF INVESTMENTS 39

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 INDEX FUND

March 31, 2004

Security	Shares	Value
Coastal Financial Corp.	1,044	$	16,963
Young Innovations Inc.	483		16,948
Alloy Inc.1	3,526		16,925
Genencor International Inc.1	1,268		16,877
Blue Rhino Corp.1	996		16,872
Bay View Capital Corp.	7,555		16,848
Penn-America Group Inc.	1,149		16,844
CPI Corp.	884		16,823
Energy Conversion Devices Inc.1	1,716		16,817
NetScout Systems Inc.1	2,185		16,803
Syntel Inc.	609		16,772
Pegasystems Inc.1	2,038		16,752
Ansoft Corp.1	1,157		16,684
Guess ? Inc.1	924		16,660
Triton PCS Holdings Inc. Class A1	3,019		16,574
Medical Action Industries Inc.1	810		16,556
Inter Parfums Inc.	720		16,553
Pegasus Communications Corp.1	431		16,525
Embarcadero Technologies Inc.1	1,274		16,358
National Bankshares Inc.	325		16,351
Perry Ellis International Inc.1	590		16,219
D&E Communications Inc.	1,156		16,172
Kronos Worldwide Inc.	534		16,160
BHA Group Inc.	538		16,135
Sanders Morris Harris Group Inc.	1,347		16,124
AmericanWest Bancorporation1	818		16,123
Sykes Enterprises Inc.1	2,709		16,119
National Processing Inc.1	844		16,036
Bryn Mawr Bank Corp.	700		16,030
HealthExtras Inc.1	1,396		16,026
NN Inc.	1,366		15,941
Advanced Marketing Services Inc.	1,602		15,860
Gundle/SLT Environmental Inc.1	861		15,860
Beasley Broadcast Group Inc. Class A1	901		15,858
Covenant Transport Inc. Class A1	879		15,848
DHB Industries Inc.1	2,148		15,831
EnergySouth Inc.	453		15,814
Oak Hill Financial Inc.	484		15,803
Safety Insurance Group Inc.	831		15,789
Inet Technologies Inc.1	1,266		15,711
Digimarc Corp.1	1,269		15,698
Weyco Group Inc.	428		15,669
Smart & Final Inc.1	1,361		15,624
McMoRan Exploration Co.1	1,052		15,570
Curative Health Services Inc.1	1,160		15,544
Dave & Buster’s Inc.1	1,032		15,532
NYFIX Inc.1	3,010		15,532
American Land Lease Inc.	760		15,527
Department 56 Inc.1	1,050		15,519
First South Bancorp Inc.	399		15,481
Medallion Financial Corp.	1,787		15,458
State Financial Services Corp. Class A	546		15,446
CEVA Inc.1	1,642		15,444
Exactech Inc.1	837		15,401
Community Bank of Northern Virginia	901		15,362
Paxson Communications Corp.1	3,915		15,268
Datastream Systems Inc.1	2,130		15,251
Sun Bancorp Inc. (New Jersey)1	603		15,250
Milacron Inc.	4,389		15,230
Marine Products Corp.	1,086		15,193
Enstar Group Inc.1	329		15,180
Penns Woods Bancorp Inc.	335		15,102
LSB Bancshares Inc.	874		15,094
Summit Bancshares Inc.	500		15,050
Royal Bancshares of Pennsylvania Class A	588		14,994
Mobius Management Systems Inc.1	1,642		14,991
Shenandoah Telecommunications Co.	656		14,990
Foothill Independent Bancorp	681		14,982
Tarragon Realty Investors Inc.1	1,045		14,891
Dominion Homes Inc.1	391		14,878
Bebe Stores Inc.1	442		14,825
VitalWorks Inc.1	3,952		14,820
Pain Therapeutics Inc.1	2,118		14,720
Center Financial Corp.	934		14,701
RPC Inc.	1,318		14,683
LookSmart Ltd.1	7,450		14,676
Dover Downs Gaming & Entertainment Inc.	1,368		14,651
Charter Financial Corp.	372		14,646
Powell Industries Inc.1	824		14,634
NL Industries Inc.	1,052		14,623

40 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 INDEX FUND

March 31, 2004

Security	Shares	Value
Reading International Inc. Class A1	2,130	$	14,591
Option Care Inc.1	1,280		14,579
P.A.M. Transportation Services Inc.1	842		14,567
GB&T Bancshares Inc.	517		14,554
Synovis Life Technologies Inc.1	1,018		14,547
Fargo Electronics1	1,277		14,430
Columbia Bancorp (Oregon)	879		14,416
Del Laboratories Inc.1	433		14,376
Cornell Companies Inc.1	1,239		14,335
Bentley Pharmaceuticals Inc.1	1,182		14,196
U.S. Physical Therapy Inc.1	1,026		14,159
EverTrust Financial Group Inc.	776		14,154
Innovex Inc.1	2,079		14,116
OPNET Technologies Inc.1	945		14,090
Summit America Television Inc.1	3,484		14,075
Seaboard Corp.	42		14,070
Arena Pharmaceuticals Inc.1	2,158		14,027
Meridian Bioscience Inc.	1,373		13,992
Centillium Communications Inc.1	3,094		13,985
Center Bancorp Inc.	884		13,976
Santander BanCorp	506		13,915
BancTrust Financial Group Inc.	793		13,877
Standard Motor Products Inc.	884		13,861
IBT Bancorp Inc.	288		13,838
Alico Inc.	433		13,812
Computer Horizons Corp.1	3,210		13,803
Parkvale Financial Corp.	481		13,785
United Security Bancshares Inc.	521		13,780
FloridaFirst Bancorp Inc.	510		13,760
Verint Systems Inc.1	445		13,751
First Defiance Financial Corp.	493		13,735
Aspect Medical Systems Inc.1	919		13,693
White Electronic Designs Corp.1	1,785		13,655
American Mortgage Acceptance Corp.	754		13,610
Commercial Bankshares Inc.	500		13,560
First Albany Companies Inc.	976		13,508
Dril-Quip Inc.1	821		13,497
Lifeline Systems Inc.1	712		13,450
Heritage Commerce Corp.1	1,034		13,442
Overland Storage Inc.1	792		13,424
First Consulting Group Inc.1	2,144		13,421
FMS Financial Corp.	762		13,335
1-800 CONTACTS INC.1	757		13,329
Fairchild Corp. (The) Class A1	2,676		13,326
D&K Healthcare Resources Inc.	1,299		13,315
McLeodUSA Inc. Class A1	8,935		13,313
CNB Financial Corp.	306		13,308
Vastera Inc.1	3,422		13,277
Warwick Community Bancorp	396		13,266
Westmoreland Coal Co.1	722		13,249
Camco Financial Corp.	809		13,243
C&F Financial Corp.	324		13,206
CRIIMI MAE Inc.1	1,183		13,190
Chesapeake Utilities Corp.	514		13,169
Ulticom Inc.1	1,279		13,123
Navigators Group Inc.1	454		13,066
La Jolla Pharmaceutical Co.1	4,709		12,997
Neose Technologies Inc.1	1,376		12,934
Taylor Capital Group Inc.	561		12,931
Chicago Pizza & Brewery Inc.1	989		12,926
First M&F Corp.	382		12,870
Cantel Medical Corp.1	719		12,863
Maritrans Inc.	816		12,819
Citizens South Banking Corp.	943		12,806
IMPAC Medical Systems Inc.1	569		12,802
MutualFirst Financial Inc.	530		12,757
Ambassadors International Inc.	977		12,750
Material Sciences Corp.	1,159		12,749
Greater Community Bancorp	790		12,711
SM&A1	1,154		12,706
Seabulk International Inc.1	1,424		12,674
CryoLife Inc.1	2,129		12,668
United Security Bancshares	512		12,646
BroadVision Inc.1	2,062		12,640
United Mobile Homes Inc.	784		12,630
Great American Financial Resources Inc.	801		12,624
Heartland Financial USA Inc.	675		12,589
FFLC Bancorp Inc.	467		12,567
Vitria Technology Inc.1	2,131		12,532
SEMCO Energy Inc.	2,210		12,509
Greene County Bancshares Inc.	557		12,494

SCHEDULES OF INVESTMENTS 41

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 INDEX FUND

March 31, 2004

Security	Shares	Value
Nassda Corp.1	1,799	$	12,485
aaiPharma Inc.1	1,882		12,478
Medis Technologies Ltd.1	941		12,468
Compucom Systems Inc.1	2,270		12,462
Infonet Services Corp. Class B1	6,256		12,449
Trans World Entertainment Corp.1	1,313		12,447
Boston Beer Co. Inc. Class A1	674		12,415
Superconductor Technologies Inc.1	5,392		12,402
ESB Financial Corp.	883		12,362
CollaGenex Pharmaceuticals Inc.1	926		12,334
Old Point Financial Corp.	411		12,330
Donegal Group Inc. Class A	615		12,325
Cavalry Bancorp Inc.	730		12,315
TheStreet.com Inc.1	2,701		12,290
Research Frontiers Inc.1	1,260		12,247
Sizeler Property Investors Inc.	1,049		12,210
PEC Solutions Inc.1	922		12,189
Deb Shops Inc.	472		12,135
Maui Land & Pineapple Co. Inc.1	350		12,131
Intellisync Corp.1	3,682		12,114
Princeton Review Inc. (The)1	1,402		12,113
Yadkin Valley Bank & Trust Co.	723		12,110
First United Corp.	525		12,096
Sierra Bancorp	796		12,059
First Citizens Banc Corp.	453		12,054
PAB Bankshares Inc.	944		11,989
Century Bancorp Inc. Class A	362		11,979
IXYS Corp.1	1,271		11,947
Merchants Bancshares Inc.	417		11,889
Virage Logic Corp.1	1,277		11,810
Raindance Communications Inc.1	4,141		11,802
Bruker BioSciences Corp.1	2,355		11,799
Security Bank Corp.	393		11,790
NASB Financial Inc.	295		11,735
Galyan’s Trading Co.1	1,165		11,720
Duratek Inc.1	736		11,710
Eastern Virginia Bankshares	505		11,630
Systemax Inc.1	2,198		11,605
Group 1 Software Inc.1	712		11,591
MAIR Holdings Inc.1	1,268		11,590
Technical Olympic USA Inc.1	360		11,520
Drexler Technology Corp.1	840		11,508
Flag Financial Corp.	898		11,503
Ampco-Pittsburgh Corp.	888		11,464
Roxio Inc.1	2,558		11,434
Heritage Financial Corp.	543		11,343
E-LOAN Inc.1	3,644		11,333
Ambassadors Group Inc.	458		11,326
Rex Stores Corp.1	715		11,254
TransMontaigne Inc.1	1,841		11,230
iGATE Corp.1	1,611		11,229
Shoe Carnival Inc.1	722		11,184
LNB Bancorp Inc.	542		11,176
ACLARA BioSciences Inc.1	2,827		11,082
Gerber Scientific Inc.1	1,629		11,077
Firstbank Corp.	416		11,066
Sanchez Computer Associates Inc.1	1,687		11,033
Financial Industries Corp.1	829		10,993
Northern States Financial Corp.	411		10,941
National Health Realty Inc.	582		10,872
Radiant Systems Inc.1	1,808		10,870
Pantry Inc. (The)1	541		10,777
Warwick Valley Telephone Co.	419		10,705
Third Wave Technologies Inc.1	2,322		10,704
Friedman’s Inc.	1,835		10,643
Martha Stewart Living Omnimedia Inc. Class A1	961		10,571
Cherokee Inc.	447		10,486
Omega Protein Corp.1	1,422		10,338
Exchange National Bancshares Inc.	326		10,334
Ingles Markets Inc. Class A	963		10,311
Wayne Bancorp Inc.	435		10,179
Pemstar Inc.1	2,780		10,147
Chronimed Inc.1	1,305		10,140
FNB Corp. (North Carolina)	472		10,058
First Federal Financial of Kentucky	382		10,047
Franklin Financial Corp.	317		10,005
Green Mountain Coffee Roasters Inc.1	492		9,919
Westfield Financial Inc.	402		9,897
Micro Therapeutics Inc.1	2,350		9,870
Alamo Group Inc.	564		9,808
Richardson Electronics Ltd.	806		9,761

42 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 INDEX FUND

March 31, 2004

Security	Shares	Value
NetRatings Inc.1	883	$	9,757
SimpleTech Inc.1	2,039		9,685
Blount International Inc.1	967		9,670
Clean Harbors Inc.1	1,298		9,618
Hollis-Eden Pharmaceuticals1	994		9,592
Whitehall Jewellers Inc.1	1,049		9,588
Hampshire Group Ltd.1	310		9,449
Convera Corp.1	2,654		9,422
Arden Group Inc. Class A	124		9,362
Lannett Co. Inc.1	559		9,335
Synplicity Inc.1	1,294		9,317
Orleans Homebuilders Inc.1	384		9,235
Catapult Communications Corp.1	511		9,111
DigitalThink Inc.1	3,832		9,082
Specialty Laboratories Inc.1	837		9,040
APAC Customer Services Inc.1	3,020		8,909
Sigma Designs Inc.1	1,227		8,798
Finlay Enterprises Inc.1	484		8,717
Sun Bancorp Inc. (Pennsylvania)	447		8,717
Retractable Technologies Inc.1	1,383		8,685
United Capital Corp.	395		8,643
Ultimate Electronics Inc.1	1,317		8,600
Value Line Inc.	163		8,595
Digital Generation Systems Inc.1	5,656		8,541
TradeStation Group Inc.1	1,256		8,453
Petroleum Helicopters Inc.1	342		8,447
Liquidmetal Technologies1	2,643		8,431
Mothers Work Inc.1	316		8,421
National Beverage Corp.	882		8,397
Cholestech Corp.1	954		8,395
Centennial Communications Corp.1	1,239		8,376
Dover Motorsports Inc.	2,158		8,308
Greenbrier Companies Inc.1	489		8,259
Oneida Financial Corp.	586		8,204
Pacific Union Bank	279		8,189
Neoforma Inc.1	753		8,185
NYMAGIC Inc.	323		8,172
GTC Biotherapeutics Inc.1	3,537		7,781
Durect Corp.1	2,267		7,708
Sypris Solutions Inc.	449		7,633
Osteotech Inc.1	1,174		7,572
Repligen Corp.1	2,487		7,486
General Binding Corp.1	430		7,310
EMC Insurance Group Inc.	347		7,308
BRT Realty Trust	299		7,134
Restoration Hardware Inc.1	1,431		7,112
Price Legacy Corporation1	415		7,076
MarketWatch.com Inc.1	502		6,998
Acme Communications Inc.1	869		6,900
Mestek Inc.1	383		6,886
Dobson Communications Corp. Class A1	2,337		6,754
Modtech Holdings Inc.1	911		6,751
Crawford & Co. Class B	1,314		6,675
PC Connection Inc.1	835		6,588
Emerson Radio Corp.1	1,718		6,563
Hi-Tech Pharmacal Co.1	334		6,530
Boyds Collection Ltd. (The)1	2,599		6,523
Biopure Corp.1	4,125		6,517
AVI BioPharma Inc.1	2,122		6,430
Crown Media Holdings Inc.1	777		6,286
Carmike Cinemas Inc.1	168		6,262
Vital Images Inc.1	611		6,134
Medical Staffing Network Holdings Inc.1	775		6,099
Novoste Corp.1	1,781		6,038
Noland Co.	126		5,995
SAFLINK Corp.1	1,906		5,870
Horizon Offshore Inc.1	1,809		5,481
Sirna Therapeutics Inc.1	1,344		5,443
U.S. Xpress Enterprises Inc. Class A1	381		5,414
Interland Inc.1	1,285		5,307
InteliData Technologies Corp.1	4,272		5,297
ICT Group Inc.1	379		5,079
Metro One Telecommunications Inc.1	2,206		5,074
Cerus Corp.1	1,489		4,958
United PanAm Financial Corp.1	309		4,941
Optical Communication Products Inc.1	1,467		4,826
American Realty Investors Inc.1	497		4,776
Alteon Inc.1	2,503		4,505
Atari Inc.1	1,301		4,436
Oneida Ltd.	1,768		4,332
Nuance Communications Inc.1	615		4,028
Alliance Imaging Inc.1	1,000		3,900

SCHEDULES OF INVESTMENTS 43

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 INDEX FUND

March 31, 2004

Security	Shares or Principal		Value
Wilsons The Leather Experts Inc.1		1,366	$	3,811
Newtek Business Services Inc.1		503		2,616
Revlon Inc. Class A1		924		2,559
Dynacq Healthcare Inc.1		480		2,534
Hungarian Telephone and Cable Corp.1		255		2,318
Transcontinental Realty Investments Inc.1		127		1,843
Raytech Corp.1		525		1,512
RCN Corp.1		4,830		1,401
Redback Networks Inc.1		211		1,329
Sports Resorts International Inc.1		107		418
PetroCorp Inc.2		1,248		—
WilTel Communications Group Inc.2		2,213		—
TOTAL COMMON STOCKS (Cost: $1,492,749,783)				1,416,208,190
SHORT-TERM INVESTMENTS – 10.58%
MONEY MARKET FUNDS – 4.17%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares3,4		41,924,266		41,924,266
Barclays Global Investors Funds Prime Money Market Fund, Institutional Shares3,4		13,448,733		13,448,733
BlackRock Temp Cash Money Market Fund3		629,507		629,507
Short-Term Investment Co.- Liquid Assets Money Market Portfolio3		3,134,854		3,134,854
				59,137,360
FLOATING RATE NOTES – 2.10%
Beta Finance Inc.
1.05%, 05/20/043,5	$	611,306		611,294
1.05%, 09/15/043,5		1,222,612		1,222,556
1.06%, 10/12/043,5		611,306		611,274
1.14%, 08/23/043,5		611,306		611,512
CC USA Inc.
1.05%, 04/19/043,5		537,949		537,948
1.06%, 05/24/043,5		1,222,612		1,222,594
1.09%, 07/15/043,5		611,306		611,369
1.51%, 02/15/053,5		794,698		795,803
Security	Principal		Value
Dorada Finance Inc.
1.04%, 07/01/043	$	427,914	$	426,789
1.05%, 05/20/043,5		1,222,612		1,222,587
1.24%, 08/09/043		305,653		305,637
1.48%, 01/18/053,5		916,959		916,923
Five Finance Inc.
1.06%, 04/15/043,5		611,306		611,306
HBOS Treasury Services PLC
1.10%, 04/22/053		1,222,612		1,222,612
Holmes Financing PLC
1.05%, 04/15/043		122,261		122,262
K2 USA LLC
1.05%, 08/16/043,5		305,653		305,636
1.05%, 09/27/043,5		1,320,421		1,320,324
1.06%, 04/13/043		611,306		611,305
1.06%, 05/17/043		611,306		611,303
1.46%, 01/12/053,5		611,306		611,258
Links Finance LLC
1.05%, 06/28/043		611,306		611,277
1.06%, 05/04/043		611,306		611,303
1.06%, 07/20/043		489,045		489,015
Nationwide Building Society
1.09%, 07/23/043,5		916,959		916,959
1.11%, 12/28/043,5		1,222,612		1,222,612
Northern Rock PLC
1.11%, 01/13/053,5		1,161,481		1,161,481
Permanent Financing PLC
1.04%, 03/10/053		1,222,612		1,222,612
1.05%, 12/10/043		611,306		611,306
Sigma Finance Inc.
1.05%, 07/01/043		611,306		611,268
1.06%, 07/20/043		611,306		611,269
1.09%, 10/07/043		1,222,612		1,222,486
1.24%, 08/06/043		305,653		305,642
Tango Finance Corp.
1.05%, 01/18/053,5		537,949		537,906
1.06%, 07/15/043,5		366,784		366,749
1.07%, 02/25/053,5		684,663		684,539
1.10%, 07/06/043,5		366,784		366,774

44 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 INDEX FUND

March 31, 2004

Security	Principal		Value
WhistleJacket Capital LLC
1.05%, 09/15/043,5	$	611,306	$	611,250
1.32%, 02/04/053,5		305,653		305,602
White Pine Finance LLC
1.04%, 08/26/043,5		611,306		611,268
1.05%, 11/15/043,5		733,567		733,567
1.06%, 04/20/043,5		611,306		611,306
1.06%, 07/06/043,5		733,567		733,549
				29,672,032
COMMERCIAL PAPER – 1.93%
Alpine Securitization Corp.
1.03%, 04/14/043		574,628		574,414
1.03%, 04/20/043		611,306		610,974
1.03%, 04/23/043		721,341		720,887
1.03%, 04/26/043		611,306		610,869
Amsterdam Funding Corp.
1.03%, 05/05/043		495,158		494,677
Barton Capital Corp.
1.03%, 04/02/043		637,091		637,073
Blue Ridge Asset Funding Corp.
1.02%, 04/23/043		366,784		366,555
1.03%, 05/21/043		611,306		610,432
Corporate Asset Funding
1.05%, 05/21/043		635,758		634,836
Corporate Receivables Corp.
1.03%, 04/07/043		611,306		611,201
1.04%, 06/03/043		1,222,612		1,220,387
Delaware Funding Corp.
1.03%, 04/02/043		611,306		611,289
1.03%, 05/05/043		917,974		917,081
1.03%, 05/21/043		305,653		305,216
Edison Asset Securitization
1.07%, 09/21/043		611,306		608,163
Eureka Securitization Inc.
1.03%, 05/25/043		244,522		244,145
1.04%, 04/14/043		733,567		733,292
Falcon Asset Securitization
1.03%, 04/15/043		734,704		734,410
1.03%, 04/22/043		721,341		720,908
1.03%, 04/30/043		611,306		610,799
Galaxy Funding Inc.
1.05%, 05/17/043		611,306		610,490
Gemini Securitization Corp.
1.03%, 04/20/043		367,028		366,829
1.03%, 04/23/043		706,511		706,066
1.03%, 04/30/043		428,440		428,084
1.03%, 05/24/043		305,653		305,190
1.04%, 04/19/043		305,653		305,494
GIRO Funding US Corp.
1.05%, 05/19/043		305,653		305,226
Jupiter Securitization Corp.
1.03%, 04/16/043		1,222,612		1,222,087
1.03%, 04/19/043		1,650,526		1,649,677
1.03%, 04/28/043		733,567		733,001
1.03%, 04/30/043		1,041,360		1,040,496
Liberty Street Funding Corp.
1.04%, 04/08/043		428,354		428,268
1.05%, 04/05/043		495,158		495,100
Polonius Inc.
1.04%, 05/21/043		707,281		706,259
Preferred Receivables Funding Corp.
1.03%, 04/19/043		1,283,743		1,283,082
1.04%, 04/23/043		1,406,004		1,405,110
1.04%, 05/20/043		305,653		305,220
Receivables Capital Corp.
1.04%, 04/14/043		537,949		537,747
Scaldis Capital LLC
1.05%, 06/30/043		437,695		436,546
Thames Asset Global Securitization No. 1 Inc.
1.03%, 04/19/043		611,306		610,992
Thunder Bay Funding Inc.
1.03%, 04/19/043		388,852		388,652
1.04%, 04/29/043		550,664		550,219
				27,397,443
TIME DEPOSITS – 1.65%
Abbey National Treasury Services PLC
1.08%, 04/01/043		4,279,134		4,279,134
1.33%, 02/10/053		611,306		611,227
1.39%, 02/02/053		611,306		611,229
1.40%, 10/25/043		1,222,612		1,222,508

SCHEDULES OF INVESTMENTS 45

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 INDEX FUND

March 31, 2004

Security	Principal		Value
Bank of New York
1.39%, 11/01/043	$	1,222,612	$	1,222,540
Bank of Nova Scotia
1.24%, 10/07/043		916,959		916,912
1.42%, 10/29/043		916,959		916,999
Canadian Imperial Bank of Commerce
1.24%, 10/07/043		916,959		916,888
1.38%, 11/22/043		305,653		305,668
1.40%, 10/29/043		1,222,612		1,222,595
National City Bank (Cleveland, Ohio)
1.02%, 04/01/043		1,833,918		1,833,918
Toronto-Dominion Bank
1.04%, 06/22/043		305,653		305,653
1.22%, 03/23/053		2,139,571		2,139,205
1.34%, 02/10/053		489,045		488,982
1.41%, 11/01/043		916,959		916,905
UBS Finance (Delaware)
1.06%, 04/01/043		2,445,224		2,445,224
1.10%, 09/08/043		1,222,612		1,216,635
1.11%, 12/17/043		1,833,918		1,819,216
				23,391,438
REPURCHASE AGREEMENTS – 0.52%
Bank of America, NA
1.06%, 04/01/043		2,445,224		2,445,224
Goldman, Sachs & Co.
1.08%, 04/01/043		4,890,448		4,890,448
				7,335,672
U.S. GOVERNMENT AGENCY NOTES – 0.21%
Federal Home Loan Mortgage Corporation
1.15%, 05/12/043		916,959		915,758
1.28%, 08/19/043		489,045		486,610
Federal National Mortgage Association
1.28%, 08/20/043		1,589,396		1,581,428
				2,983,796
TOTAL SHORT-TERM INVESTMENTS (Cost: $149,917,741)				149,917,741
TOTAL INVESTMENTS IN SECURITIES – 110.50% (Cost $1,642,667,524)				1,566,125,931
Other Assets, Less Liabilities – (10.50%)				(148,778,199	)
NET ASSETS – 100.00%			$	1,417,347,732

¹ Non-income earning securities.

² Security valued at fair value in accordance with procedures approved by the Board of Trustees. See Note 1.

³ All or a portion of this security represents investments of securities lending collateral.

⁴ Issuer is an affiliate of the Fund’s investment advisor. See Note 2.

⁵ Security exempt from registration under Rule 144A of the Securities Act of 1933.

These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

See notes to financial statements.

46 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® RUSSELL 3000 GROWTH INDEX FUND

March 31, 2004

Security	Shares	Value
COMMON STOCKS – 99.93%
General Electric Co.	193,885	$	5,917,370
Pfizer Inc.	153,145		5,367,732
Microsoft Corp.	173,478		4,331,746
Intel Corp.	126,731		3,447,083
Cisco Systems Inc.1	136,127		3,201,707
Wal-Mart Stores Inc.	51,546		3,076,781
Johnson & Johnson	57,577		2,920,305
Coca-Cola Co. (The)	35,439		1,782,582
Procter & Gamble Co.	16,039		1,682,170
Home Depot Inc.	44,466		1,661,250
American International Group Inc.	22,693		1,619,146
PepsiCo Inc.	29,507		1,588,952
Dell Inc.1	44,154		1,484,457
Amgen Inc.1	24,983		1,453,261
International Business Machines Corp.	15,661		1,438,306
Fannie Mae	18,982		1,411,312
Lilly (Eli) & Co.	18,693		1,250,562
Abbott Laboratories	30,249		1,243,234
Medtronic Inc.	23,630		1,128,333
3M Co.	13,419		1,098,614
QUALCOMM Inc.	15,333		1,018,418
Texas Instruments Inc.	33,588		981,441
Oracle Corp.1	75,250		903,753
American Express Co.	16,604		860,917
Wyeth	22,731		853,549
Merck & Co. Inc.	19,195		848,227
Lowe’s Companies Inc.	14,753		828,086
Anheuser-Busch Companies Inc.	16,187		825,537
Target Corp.	17,636		794,325
First Data Corp.	17,922		755,592
UnitedHealth Group Inc.	11,521		742,413
United Parcel Service Inc. Class B	9,953		695,118
Applied Materials Inc.1	32,025		684,694
Walgreen Co.	19,838		653,662
EMC Corp.1	45,659		621,419
Cardinal Health Inc.	8,656		596,398
eBay Inc.1	8,104		561,850
Fifth Third Bancorp	9,717		538,030
Boston Scientific Corp.1	12,521		530,640
Comcast Corp. Class A1	18,242		524,275
Boeing Co. (The)	12,731		522,862
Colgate-Palmolive Co.	9,309		512,926
Yahoo! Inc.1	10,444		507,474
Altria Group Inc.	9,232		502,682
Sysco Corp.	12,596		491,874
Marsh & McLennan Companies Inc.	10,386		480,872
Gillette Co. (The)	12,177		476,121
Forest Laboratories Inc.1	6,643		475,772
Viacom Inc. Class B	11,873		465,540
Automatic Data Processing Inc.	10,991		461,622
Bristol-Myers Squibb Co.	18,840		456,493
MBNA Corp.	15,476		427,602
Genentech Inc.1	3,975		420,634
Nextel Communications Inc. Class A1	16,860		416,948
Guidant Corp.	5,972		378,446
Baxter International Inc.	11,589		357,984
Zimmer Holdings Inc.1	4,703		346,987
United Technologies Corp.	3,995		344,769
Analog Devices Inc.	7,054		338,663
SLM Corp.	7,983		334,089
Progressive Corp. (The)	3,779		331,040
Motorola Inc.	18,453		324,773
Biogen Idec Inc.1	5,706		317,254
Harley-Davidson Inc.	5,894		314,386
WellPoint Health Networks Inc.1	2,693		306,248
HCA Inc.	7,509		305,016
International Game Technology Inc.	6,593		296,421
Maxim Integrated Products Inc.	6,282		295,819
Omnicom Group Inc.	3,672		294,678
Starbucks Corp.1	7,534		284,409
Gap Inc. (The)	12,731		279,064
Symantec Corp.1	6,024		278,911
Kohls Corp.1	5,539		267,700
Best Buy Co. Inc.	5,097		263,617
AT&T Wireless Services Inc.1	19,339		263,204
Caremark Rx Inc.1	7,772		258,413
Illinois Tool Works Inc.	3,243		256,943
AFLAC Inc.	6,303		253,002
St. Jude Medical Inc.1	3,469		250,115
Walt Disney Co. (The)	10,005		250,025
Nike Inc. Class B	3,176		247,315

SCHEDULES OF INVESTMENTS 47

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 GROWTH INDEX FUND

March 31, 2004

Security	Shares	Value
Xilinx Inc.1	6,500	$	247,000
Staples Inc.1	9,618		244,201
TJX Companies Inc.	9,940		244,126
McGraw-Hill Companies Inc. (The)	3,189		242,810
Bed Bath & Beyond Inc.1	5,763		240,663
Stryker Corp.	2,699		238,942
Schwab (Charles) Corp. (The)	20,441		237,320
Electronic Arts Inc.1	4,336		233,971
Halliburton Co.	7,670		233,091
Gilead Sciences Inc.1	4,116		229,549
Paychex Inc.	6,435		229,086
Linear Technology Corp.	6,056		224,193
Newmont Mining Corp.	4,777		222,752
Capital One Financial Corp.	2,899		218,672
Veritas Software Corp.1	8,032		216,141
Apollo Group Inc. Class A1	2,493		214,672
Yum! Brands Inc.1	5,648		214,568
Allergan Inc.	2,520		212,083
Lexmark International Inc.1	2,276		209,392
Liberty Media Corp. Class A1	18,916		207,130
Clear Channel Communications Inc.	4,725		200,104
Danaher Corp.	2,081		194,303
InterActiveCorp1	6,095		192,541
Biomet Inc.	4,981		191,071
Waste Management Inc.	6,318		190,677
Becton, Dickinson & Co.	3,904		189,266
Kimberly-Clark Corp.	2,992		188,795
Computer Associates International Inc.	7,009		188,262
KLA-Tencor Corp.1	3,720		187,302
Amazon.com Inc.1	4,253		184,070
Baker Hughes Inc.	5,020		183,130
Freddie Mac	3,062		180,842
Block (H & R) Inc.	3,466		176,870
Adobe Systems Inc.	4,485		176,844
Genzyme Corp.1	3,717		174,848
General Mills Inc.	3,668		171,222
Moody’s Corp.	2,400		169,920
Juniper Networks Inc.1	6,416		166,880
FedEx Corp.	2,214		166,404
Broadcom Corp. Class A1	4,241		166,120
Intuit Inc.1	3,548		159,234
Mattel Inc.	8,504		156,814
Wrigley (William Jr.) Co.	2,594		153,357
Altera Corp.1	7,433		152,005
Corning Inc.1	13,332		149,052
Coach Inc.1	3,547		145,392
EchoStar Communications Corp.1	4,390		143,772
SunGard Data Systems Inc.1	5,091		139,493
Southwest Airlines Co.	9,704		137,894
Sprint Corp. (PCS Group)1	14,974		137,761
American Standard Companies Inc.1	1,185		134,794
Sara Lee Corp.	6,124		133,871
National Semiconductor Corp.1	2,962		131,602
Pitney Bowes Inc.	3,079		131,196
Synovus Financial Corp.	5,334		130,416
ITT Industries Inc.	1,668		127,318
Network Appliance Inc.1	5,934		127,284
Costco Wholesale Corp.1	3,366		126,427
Fiserv Inc.1	3,527		126,161
BJ Services Co.1	2,864		123,925
Mylan Laboratories Inc.	5,327		121,083
Freeport-McMoRan Copper & Gold Inc.	2,958		115,628
Quest Diagnostics Inc.	1,393		115,382
Avery Dennison Corp.	1,849		115,026
MedImmune Inc.1	4,924		113,646
Varian Medical Systems Inc.1	1,314		113,411
Mellon Financial Corp.	3,587		112,237
Wells Fargo & Company	1,973		111,810
Cendant Corp.	4,486		109,414
Anadarko Petroleum Corp.	2,102		109,010
IMS Health Inc.	4,673		108,694
Dollar General Corp.	5,596		107,443
RadioShack Corp.	3,238		107,372
DIRECTV Group Inc. (The)1	6,966		107,137
Health Management Associates Inc. Class A	4,578		106,255
JDS Uniphase Corp.1	25,989		105,775
Heinz (H.J.) Co.	2,819		105,121
Ecolab Inc.	3,647		104,049
Career Education Corp.1	1,837		104,048
Family Dollar Stores Inc.	2,889		103,860
AutoZone Inc.1	1,206		103,680

48 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 GROWTH INDEX FUND

March 31, 2004

Security	Shares	Value
Microchip Technology Inc.	3,899	$	103,557
Laboratory Corp. of America Holdings1	2,626		103,071
Cintas Corp.	2,369		103,028
EOG Resources Inc.	2,210		101,417
Affiliated Computer Services Inc. Class A1	1,917		99,492
Morgan Stanley	1,733		99,301
Legg Mason Inc.	1,064		98,718
Waters Corp.1	2,407		98,302
Agere Systems Inc. Class B1	31,427		98,052
Aetna Inc.	1,078		96,718
Anthem Inc.1	1,065		96,532
Marriott International Inc. Class A	2,210		94,036
Kinder Morgan Inc.	1,483		93,459
BEA Systems Inc.1	7,262		92,663
Kellogg Co.	2,326		91,272
Ross Stores Inc.	2,968		90,850
McKesson Corp.	3,012		90,631
Express Scripts Inc.1	1,192		88,911
Bard (C.R.) Inc.	896		87,485
Univision Communications Inc. Class A1	2,635		86,981
Du Pont (E.I.) de Nemours and Co.	2,059		86,931
Black & Decker Corp.	1,496		85,182
Masco Corp.	2,787		84,836
New York Community Bancorp Inc.	2,461		84,363
Teradyne Inc.1	3,539		84,334
Sealed Air Corp.1	1,667		82,900
Clorox Co.	1,694		82,854
Patterson Dental Co.1	1,197		82,126
Tiffany & Co.	2,150		82,066
Lockheed Martin Corp.	1,793		81,833
Estee Lauder Companies Inc. Class A	1,815		80,477
Hershey Foods Corp.	967		80,116
Oxford Health Plans Inc.	1,635		79,870
BMC Software Inc.1	4,066		79,490
Medco Health Solutions Inc.1	2,332		79,288
New York Times Co. Class A	1,791		79,162
Newell Rubbermaid Inc.	3,402		78,926
Emerson Electric Co.	1,311		78,555
Micron Technology Inc.1	4,692		78,403
NVIDIA Corp.1	2,957		78,331
Chico’s FAS Inc.1	1,682		78,045
Jabil Circuit Inc.1	2,649		77,960
Harman International Industries Inc.	974		77,530
CDW Corp.	1,135		76,737
Synopsys Inc.1	2,644		76,570
T. Rowe Price Group Inc.	1,421		76,492
Dun & Bradstreet Corp.1	1,429		76,451
Bank of New York Co. Inc. (The)	2,418		76,167
SanDisk Corp.1	2,682		76,088
Pepsi Bottling Group Inc.	2,557		76,071
Chiron Corp.1	1,725		75,917
Expeditors International Washington Inc.	1,922		75,900
Celgene Corp.1	1,586		75,573
Novellus Systems Inc.1	2,342		74,452
Commerce Bancorp Inc.	1,127		74,247
PETsMART Inc.	2,690		73,329
Brinker International Inc.1	1,916		72,674
Whole Foods Market Inc.	965		72,327
Harrah’s Entertainment Inc.	1,314		72,125
Sepracor Inc.1	1,485		71,429
Dow Chemical Co. (The)	1,757		70,772
Praxair Inc.	1,898		70,454
Citrix Systems Inc.1	3,254		70,351
DENTSPLY International Inc.	1,555		68,933
Smith International Inc.1	1,277		68,332
Dollar Tree Stores Inc.1	2,211		68,298
AES Corp. (The)1	7,981		68,078
Molex Inc.	2,238		68,013
Ameritrade Holding Corp.1	4,372		67,329
Applera Corp. - Applied Biosystems Group	3,402		67,292
Robert Half International Inc.1	2,808		66,325
Mercury Interactive Corp.1	1,470		65,856
Beckman Coulter Inc.	1,206		65,775
Darden Restaurants Inc.	2,628		65,148
Lam Research Corp.1	2,556		64,437
Fastenal Co.	1,177		63,193
Ball Corp.	931		63,103
Gentex Corp.	1,444		62,641

SCHEDULES OF INVESTMENTS 49

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 GROWTH INDEX FUND

March 31, 2004

Security	Shares	Value
Barr Pharmaceuticals Inc.1	1,360	$	62,424
DST Systems Inc.1	1,374		62,311
Unisys Corp.1	4,326		61,775
Scripps (E.W.) Co. Class A	607		61,374
Abercrombie & Fitch Co. Class A	1,811		61,284
QLogic Corp.1	1,849		61,035
McCormick & Co. Inc.	1,794		60,135
AmerisourceBergen Corp.	1,099		60,093
ChoicePoint Inc.1	1,569		59,669
IVAX Corp.1	2,593		59,043
Gallagher (Arthur J.) & Co.	1,790		58,300
Corinthian Colleges Inc.1	1,752		57,921
Lincare Holdings Inc.1	1,843		57,907
Cephalon Inc.1	1,010		57,883
CarMax Inc.1	1,977		57,728
Doral Financial Corp.	1,638		57,658
Phelps Dodge Corp.1	706		57,652
CH Robinson Worldwide Inc.	1,388		57,602
Red Hat Inc.1	2,509		57,356
XTO Energy Inc.	2,271		57,326
PMC-Sierra Inc.1	3,355		56,934
Patterson-UTI Energy Inc.1	1,601		56,691
Coventry Health Care Inc.1	1,325		56,087
Equifax Inc.	2,171		56,055
Cognizant Technology Solutions Corp.1	1,230		55,657
Iron Mountain Inc.1	1,242		55,430
GTECH Holdings Corp.	931		55,059
Williams-Sonoma Inc.1	1,601		54,754
Rockwell Collins Inc.	1,723		54,464
Manpower Inc.	1,167		54,266
Avon Products Inc.	708		53,716
DaVita Inc.1	1,122		53,575
Symbol Technologies Inc.	3,849		53,116
Eaton Vance Corp.	1,376		52,453
Campbell Soup Co.	1,918		52,304
Siebel Systems Inc.1	4,490		51,680
Investors Financial Services Corp.	1,250		51,650
Hilton Hotels Corp.	3,173		51,561
Zebra Technologies Corp. Class A1	730		50,640
Michaels Stores Inc.	1,031		50,127
Sanmina-SCI Corp.1	4,549		50,084
Conexant Systems Inc.1	8,119		50,013
Westwood One Inc.1	1,685		49,623
Fisher Scientific International Inc.1	896		49,316
Cytyc Corp.1	2,213		49,239
ImClone Systems Inc.1	966		49,131
Rambus Inc.1	1,751		49,081
Monster Worldwide Inc.1	1,856		48,627
VeriSign Inc.1	2,898		48,078
PeopleSoft Inc.1	2,577		47,649
L-3 Communications Holdings Inc.	801		47,643
Network Associates Inc.1	2,638		47,484
Maytag Corp.	1,494		47,166
NVR Inc.1	101		46,460
Lamar Advertising Co.1	1,148		46,173
SEI Investment Co.	1,389		45,837
Fair Isaac Corp.	1,251		45,136
Federated Investors Inc. Class B	1,420		44,631
E*TRADE Financial Corp.1	3,343		44,629
JetBlue Airways Corp.1	1,763		44,586
Applebee’s International Inc.	1,075		44,451
Centex Corp.	820		44,329
UTStarcom Inc.1	1,530		44,003
Millipore Corp.1	856		43,981
WebMD Corp.1	4,937		43,890
NetScreen Technologies Inc.1	1,197		43,607
Outback Steakhouse Inc.	889		43,294
Millennium Pharmaceuticals Inc.1	2,523		42,639
Western Digital Corp.1	3,766		42,292
Chesapeake Energy Corp.	3,150		42,210
TCF Financial Corp.	822		41,980
Amylin Pharmaceuticals Inc.1	1,753		41,529
Covance Inc.1	1,196		41,190
MGI Pharma Inc.1	668		40,922
Cheesecake Factory (The)1	886		40,871
Fox Entertainment Group Inc. Class A1	1,507		40,840
Cox Communications Inc. Class A1	1,262		39,879
Advanced Micro Devices Inc.1	2,454		39,828
Dow Jones & Co. Inc.	831		39,813
Pall Corp.	1,749		39,685
Omnicare Inc.	891		39,498
Medicis Pharmaceutical Corp. Class A	982		39,280

50 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 GROWTH INDEX FUND

March 31, 2004

Security	Shares	Value
Krispy Kreme Doughnuts Inc.1	1,136	$	39,010
Universal Health Services Inc. Class B	846		38,975
Solectron Corp.1	7,035		38,904
Brown & Brown Inc.	1,003		38,876
Charles River Laboratories International Inc.1	907		38,865
NBTY Inc.1	1,038		38,593
Advance Auto Parts Inc.1	936		38,067
Pharmaceutical Resources Inc.1	667		37,926
Rent-A-Center Inc.1	1,142		37,675
Polaris Industries Inc.	824		37,443
Education Management Corp.1	1,169		37,209
Jacobs Engineering Group Inc.1	834		37,196
Graco Inc.	1,277		37,159
First Health Group Corp.1	1,698		37,118
Novell Inc.1	3,252		37,008
Pactiv Corp.1	1,660		36,935
Accredo Health Inc.1	968		36,881
Affymetrix Inc.1	1,090		36,787
Edwards Lifesciences Corp.1	1,150		36,742
Cooper Cameron Corp.1	833		36,694
Starwood Hotels & Resorts Worldwide Inc.	906		36,693
Tribune Co.	727		36,670
Ruby Tuesday Inc.	1,137		36,555
Waddell & Reed Financial Inc. Class A	1,490		36,535
Herman Miller Inc.	1,370		36,483
ARAMARK Corp. Class B	1,325		36,318
Reynolds & Reynolds Co. (The) Class A	1,264		35,910
Certegy Inc.	1,019		35,685
Lehman Brothers Holdings Inc.	427		35,385
Respironics Inc.1	654		35,329
Donaldson Co. Inc.	1,330		35,285
Getty Images Inc.1	651		35,141
Henry Schein Inc.1	491		35,067
Foundry Networks Inc.1	2,042		35,061
Cooper Companies Inc.	645		34,830
Stericycle Inc.1	726		34,746
IDEXX Laboratories Inc.1	605		34,406
State Street Corp.	660		34,406
Leggett & Platt Inc.	1,439		34,119
Corporate Executive Board Co. (The)	716		33,652
Weight Watchers International Inc.1	792		33,478
Sigma-Aldrich Corp.	604		33,425
BISYS Group Inc. (The)1	1,989		33,336
Rite Aid Corp.1	6,127		33,331
Friedman, Billings, Ramsey Group, Inc. Class A	1,221		32,955
Health Net Inc.1	1,317		32,833
DeVry Inc.1	1,087		32,773
Steris Corp.1	1,260		32,508
Pacific Sunwear of California Inc.1	1,322		32,442
TECHNE Corp.1	788		32,158
Station Casinos Inc.	727		32,112
Autoliv Inc.	783		32,103
IMC Global Inc.	2,226		31,832
Entercom Communications Corp.1	702		31,780
Silicon Laboratories Inc.1	595		31,464
Popular Inc.	729		31,420
North Fork Bancorp Inc.	742		31,401
International Flavors & Fragrances Inc.	884		31,382
Xerox Corp.1	2,152		31,355
Pier 1 Imports Inc.	1,321		31,308
Oshkosh Truck Corp.	556		30,969
UCBH Holdings Inc.	773		30,951
Take-Two Interactive Software Inc.1	840		30,895
Claire’s Stores Inc.	1,472		30,676
Cree Inc.1	1,371		30,573
Hyperion Solutions Corp.1	737		30,549
Integrated Circuit Systems Inc.1	1,213		30,361
Alliant Techsystems Inc.1	556		30,246
Cablevision Systems Corp.1	1,319		30,179
ResMed Inc.1	667		30,142
Protein Design Labs Inc.1	1,259		29,989
Plantronics Inc.1	819		29,984
Titan Corp. (The)1	1,480		29,881
Brink’s Co. (The)	1,082		29,842
Vitesse Semiconductor Corp.1	4,198		29,764
Mettler Toledo International Inc.1	669		29,704
Gen-Probe Inc.1	886		29,601
Evergreen Resources Inc.1	857		29,438
Novastar Financial Inc.	446		29,414

SCHEDULES OF INVESTMENTS 51

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 GROWTH INDEX FUND

March 31, 2004

Security	Shares	Value
FMC Technologies Inc.1	1,087	$	29,382
Mandalay Resort Group	510		29,203
Alliance Gaming Corp.1	907		29,142
National Instruments Corp.	925		29,101
Providian Financial Corp.1	2,220		29,082
Affiliated Managers Group Inc.1	533		29,064
INAMED Corp.1	543		28,931
Cymer Inc.1	748		28,880
Pharmaceutical Product Development Inc.1	967		28,807
ENSCO International Inc.	1,019		28,705
Western Wireless Corp. Class A1	1,209		28,254
Roper Industries Inc.	585		28,226
Apria Healthcare Group Inc.1	938		28,084
Dade Behring Holdings Inc.1	627		27,889
Grant Prideco Inc.1	1,798		27,869
Andrx Group1	1,024		27,853
Dover Corp.	717		27,798
OSI Pharmaceuticals Inc.1	722		27,725
Pediatrix Medical Group Inc.1	440		27,720
Couer d’Alene Mines Corp.1	3,933		27,531
Medicines Co. (The)1	853		27,475
Cypress Semiconductor Corp.1	1,336		27,348
Navistar International Corp.1	593		27,189
Amkor Technology Inc.1	1,856		27,153
RF Micro Devices Inc.1	3,201		27,080
Martek Biosciences Corp.1	475		27,075
Comverse Technology Inc.1	1,490		27,029
Sonic Corp.1	787		26,978
Avid Technology Inc.1	584		26,940
Wiley (John) & Sons Inc. Class A	899		26,907
St. Joe Company (The)	660		26,855
W Holding Co. Inc.	1,436		26,839
International Rectifier Corp.1	580		26,674
Allied Waste Industries Inc.1	1,991		26,500
Tellabs Inc.1	3,069		26,485
Pixar Inc.1	410		26,429
NII Holdings Inc. Class B1	753		26,378
Ask Jeeves Inc.1	737		26,333
P.F. Chang’s China Bistro Inc.1	521		26,212
Ceridian Corp.1	1,328		26,175
Coca-Cola Enterprises Inc.	1,079		26,079
ITT Educational Services Inc.1	831		25,927
Onyx Pharmaceuticals Inc.1	640		25,894
Qwest Communications International Inc.1	5,990		25,817
ADTRAN Inc.	859		25,796
Sybase Inc.1	1,222		25,650
Strayer Education Inc.	219		25,616
Nektar Therapeutics1	1,184		25,551
University of Phoenix Online1	293		25,497
Intersil Corp. Class A	1,141		25,433
Henry (Jack) & Associates Inc.	1,315		25,327
Akamai Technologies Inc.1	1,926		25,308
Macromedia Inc.1	1,256		25,208
LSI Logic Corp.1	2,698		25,199
LifePoint Hospitals Inc.1	776		25,096
Cerner Corp.1	553		24,990
Tularik Inc.1	1,012		24,845
Varian Semiconductor Equipment Associates Inc.1	589		24,738
Semtech Corp.1	1,076		24,565
Mohawk Industries Inc.1	298		24,540
Quiksilver Inc.1	1,123		24,538
Patina Oil & Gas Corp.	930		24,413
Renal Care Group Inc.1	528		24,161
Hilb, Rogal & Hamilton Co.	633		24,117
Rowan Companies Inc.1	1,142		24,085
Varian Inc.1	598		24,022
National-Oilwell Inc.1	849		24,010
O’Reilly Automotive Inc.1	598		23,944
Harte-Hanks Inc.	1,022		23,935
AMR Corp.1	1,878		23,907
Ligand Pharmaceuticals Inc. Class B1	1,187		23,859
Hot Topic Inc.1	901		23,831
Sylvan Learning Systems Inc.1	678		23,805
Avocent Corp.1	647		23,803
OmniVision Technologies Inc.1	860		23,487
Emulex Corp.1	1,098		23,376
CACI International Inc. Class A1	541		23,263
New Century Financial Corp.	479		23,260
BlackRock Inc.	376		23,000

52 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 GROWTH INDEX FUND

March 31, 2004

Security	Shares	Value
International Speedway Corp. Class A	489	$	22,983
Varco International Inc.1	1,274		22,945
Storage Technology Corp.1	824		22,932
SCP Pool Corp.1	615		22,915
East West Bancorp Inc.	407		22,792
Church & Dwight Co. Inc.	525		22,738
AMERIGROUP Corp.1	496		22,667
Trimble Navigation Ltd.1	987		22,632
Toro Co.	360		22,320
Unit Corporation1	811		22,238
Mentor Corp.	736		22,154
Southwest Bancorp of Texas Inc.	586		22,110
CIENA Corp.1	4,430		22,017
Cognex Corp.	655		21,779
Panera Bread Co. Class A1	556		21,640
Amphenol Corp. Class A1	728		21,622
Waste Connections Inc.1	543		21,611
Atmel Corp.1	3,323		21,599
SouthTrust Corp.	650		21,554
Whirlpool Corp.	312		21,487
Telik Inc.1	800		21,472
Global Payments Inc.	476		21,458
Flir Systems Inc.1	562		21,423
ADC Telecommunications Inc.1	7,373		21,382
Telephone & Data Systems Inc.	301		21,332
CEC Entertainment Inc.1	614		21,288
Washington Post Company (The) Class B	24		21,226
Urban Outfitters Inc.1	439		21,098
King Pharmaceuticals Inc.1	1,244		20,949
CBRL Group Inc.	526		20,851
Newfield Exploration Co.1	434		20,802
Alkermes Inc.1	1,296		20,723
Hillenbrand Industries Inc.	305		20,706
PETCO Animal Supplies Inc.1	734		20,684
F5 Networks Inc.1	608		20,581
Tractor Supply Co.1	531		20,560
Pennsylvania Real Estate Investment Trust	544		20,487
Timberland Co. Class A1	343		20,391
American Tower Corp. Class A1	1,785		20,260
Landstar System Inc.1	494		20,224
Maverick Tube Corp.1	857		20,182
Andrew Corp.1	1,146		20,055
Mentor Graphics Corp.1	1,124		20,030
Performance Food Group Co.1	582		19,992
Bio-Rad Laboratories Inc. Class A1	354		19,955
Noble Energy Inc.	421		19,829
NDCHealth Corp.	727		19,738
Marvel Enterprises Inc.1	1,028		19,718
Thor Industries Inc.	734		19,715
Skyworks Solutions Inc.1	1,689		19,694
Kroll Inc.1	731		19,627
Tetra Tech Inc.1	912		19,572
Energizer Holdings Inc.1	419		19,563
CNET Networks Inc.1	1,891		19,534
Vicuron Pharmaceuticals Inc.1	856		19,474
Fairchild Semiconductor International Inc. Class A1	807		19,392
Key Energy Services Inc.1	1,757		19,327
VCA Antech Inc.1	537		19,133
RSA Security Inc.1	1,017		19,109
Fred’s Inc.	786		19,076
FileNET Corp.1	715		19,055
Viad Corp.	782		18,901
Brocade Communications Systems Inc.1	2,829		18,841
Triad Hospitals Inc.1	607		18,708
InterDigital Communications Corp.1	1,069		18,686
TrustCo Bank Corp. NY	1,385		18,642
Airtran Holdings Inc.1	1,568		18,628
Dionex Corp.1	352		18,586
Regis Corp.	417		18,531
Cadence Design Systems Inc.1	1,247		18,381
Parametric Technology Corp.1	4,066		18,378
MGM Mirage1	404		18,317
Meredith Corp.	360		18,202
CLARCOR Inc.	412		18,190
Cost Plus Inc.1	435		18,161
Lexar Media Inc.1	1,096		18,150
Hudson City Bancorp Inc.	478		18,088
Texas Regional Bancshares Inc. Class A	423		17,999
Kronos Inc.1	552		17,957

SCHEDULES OF INVESTMENTS 53

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 GROWTH INDEX FUND

March 31, 2004

Security	Shares	Value
Engineered Support Systems Inc.	367	$	17,906
Wintrust Financial Corp.	367		17,847
Commonwealth Telephone Enterprises Inc.1	435		17,839
Tekelec1	1,075		17,834
Matthews International Corp. Class A	535		17,762
AtheroGenics Inc.1	776		17,747
CheckFree Corp.1	601		17,705
NPS Pharmaceuticals Inc.1	620		17,701
HON Industries Inc.	476		17,688
Harris Corp.	364		17,621
99 Cents Only Stores1	721		17,607
PerkinElmer Inc.	851		17,607
Del Monte Foods Co.1	1,560		17,550
Sybron Dental Specialties Inc.1	644		17,549
Nextel Partners Inc. Class A1	1,385		17,534
CSG Systems International Inc.1	1,017		17,472
United Natural Foods Inc.1	361		17,360
Acxiom Corp.	788		17,304
Inveresk Research Group Inc.1	607		17,251
Tenet Healthcare Corp.1	1,540		17,186
Thermo Electron Corp.1	606		17,138
Endo Pharmaceuticals Holdings Inc.1	701		17,118
HCC Insurance Holdings Inc.	528		17,070
Penn National Gaming Inc.1	591		17,003
Align Technology Inc.1	894		16,995
Markel Corp.1	59		16,986
Headwaters Inc.1	652		16,704
MacDermid Inc.	474		16,680
Human Genome Sciences Inc.1	1,329		16,652
Fossil Inc.1	499		16,642
CAL Dive International Inc.1	644		16,635
Eon Labs Inc.1	247		16,569
Openwave Systems Inc.1	1,241		16,555
Aeroflex Inc.1	1,229		16,542
Trust Co. of New Jersey (The)	398		16,521
Agilent Technologies Inc.1	522		16,511
EarthLink Inc.1	1,862		16,497
Transaction Systems Architects Inc. Class A1	711		16,453
Invitrogen Corp.1	229		16,417
Brooks Automation Inc.1	782		16,406
WebEx Communications Inc.1	550		16,352
Dick’s Sporting Goods Inc.1	281		16,337
Cathay General Bancorp	248		16,323
LTX Corp.1	1,077		16,263
Select Medical Corp.	970		16,199
Scientific Games Corp. Class A1	865		16,193
KV Pharmaceuticals Co.1	659		16,185
ILEX Oncology Inc.1	675		16,146
Rogers Corp.1	302		16,118
Intergraph Corp.1	666		16,104
DoubleClick Inc.1	1,430		16,087
CMGI Inc.1	6,550		16,047
Columbia Sportswear Co.1	289		16,022
Diagnostic Products Corp.	369		15,978
AmeriCredit Corp.1	937		15,957
SafeNet Inc.1	424		15,928
Resources Connection Inc.1	361		15,927
American Eagle Outfitters Inc.1	590		15,906
Southwestern Energy Co.1	658		15,871
Navigant Consulting Co.1	780		15,779
Emmis Communications Corp.1	662		15,762
Cumulus Media Inc. Class A1	788		15,752
Nordson Corp.	419		15,696
Ariba Inc.1	5,537		15,614
Watson Wyatt & Co. Holdings1	617		15,573
NetFlix Inc.1	456		15,559
Boyd Gaming Corp.	673		15,405
Priority Healthcare Corp. Class B1	722		15,371
Pride International Inc.1	899		15,337
Lattice Semiconductor Corp.1	1,755		15,321
Community First Bankshares Inc.	475		15,266
ICOS Corp.1	412		15,265
Connetics Corp.1	684		15,164
FactSet Research Systems Inc.	356		15,151
Total System Services Inc.	719		15,149
Tupperware Corp.	849		15,121
Owens & Minor Inc.	597		15,104
Harland (John H.) Co.	485		15,093
DSP Group Inc.1	586		15,078
Power-One Inc.1	1,362		15,064

54 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 GROWTH INDEX FUND

March 31, 2004

Security	Shares	Value
First Bancorp	362	$	15,059
Aeropostale Inc.1	415		15,048
Kos Pharmaceuticals Inc.1	369		15,033
Champion Enterprises Inc.1	1,417		15,020
Polycom Inc.1	706		14,988
Rare Hospitality International Inc.1	540		14,985
Advanced Medical Optics Inc.1	614		14,982
Sonus Networks Inc.1	4,035		14,970
Silicon Storage Technology Inc.1	1,152		14,907
Sierra Health Services Inc.1	409		14,888
American Pharmaceutical Partners Inc.1	316		14,833
Christopher & Banks Corp.	702		14,819
Advanced Digital Information Corp.1	1,296		14,748
Hollywood Entertainment Corp.1	1,087		14,740
Winnebago Industries Inc.	472		14,712
Pacific Capital Bancorp	370		14,678
Applera Corp. - Celera Genomics Group1	1,008		14,626
Cabot Microelectronics Corp.1	346		14,615
Hollinger International Inc.	727		14,395
ProQuest Co.1	492		14,352
Yankee Candle Co. Inc. (The)1	518		14,286
Valeant Pharmaceuticals International	597		14,250
VISX Inc.1	730		14,250
Knight Ridder Inc.	194		14,211
Power Integrations Inc.1	483		14,166
Applied Micro Circuits Corp.1	2,461		14,151
Big Lots Inc.1	973		14,108
Simpson Manufacturing Co. Inc.1	287		14,049
ATMI Inc.1	533		14,029
Hunt (J.B.) Transport Services Inc.1	498		14,029
Neurocrine Biosciences Inc.1	237		14,007
FTI Consulting Inc.1	840		13,994
CVB Financial Corp.	672		13,951
Lennar Corp. Class A	258		13,940
Catalina Marketing Corp.1	717		13,903
Littelfuse Inc.1	373		13,876
Entegris Inc.1	1,094		13,850
McDATA Corp. Class A1	1,964		13,827
American Healthways Inc.1	566		13,822
MICROS Systems Inc.1	306		13,816
Macrovision Corp.1	739		13,805
Zoran Corp.1	794		13,784
Too Inc.1	657		13,764
Edwards (A.G.) Inc.	351		13,731
Impax Laboratories Inc.1	612		13,690
Grey Wolf Inc.1	3,305		13,683
Digital River Inc.1	584		13,671
Shuffle Master Inc.1	293		13,622
United Defense Industries Inc.1	428		13,606
Olin Corp.	759		13,548
Delta & Pine Land Co.	541		13,498
Vertex Pharmaceuticals Inc.1	1,431		13,480
eResearch Technology Inc.1	480		13,464
Advanced Neuromodulation Systems Inc.1	373		13,462
Checkpoint Systems Inc.1	710		13,419
Micrel Inc.1	1,003		13,390
Belo (A.H.) Corp.	479		13,297
Taubman Centers Inc.	528		13,290
Oceaneering International Inc.1	436		13,276
Advanced Fibre Communications Inc.1	602		13,262
Jarden Corp.1	373		13,245
CUNO Inc.1	295		13,240
Harmonic Inc.1	1,369		13,211
R&G Financial Corp. Class B	382		13,194
Teledyne Technologies Inc.1	704		13,165
Wabash National Corp.1	555		13,098
Wilson Greatbatch Technologies Inc.1	360		13,061
Tidewater Inc.	464		13,052
Washington Real Estate Investment Trust	401		13,012
Manhattan Associates Inc.1	468		13,010
Websense Inc.1	439		12,999
United Online Inc.1	778		12,961
Talbots Inc. (The)	362		12,952
InterVoice-Brite Inc.1	767		12,939
Harleysville National Corp.	463		12,885
Enzon Pharmaceuticals Inc.1	835		12,884
ProAssurance Corp.1	366		12,810
Worthington Industries Inc.	659		12,633
D.R. Horton Inc.	355		12,578
Heartland Express Inc.	551		12,552

SCHEDULES OF INVESTMENTS 55

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 GROWTH INDEX FUND

March 31, 2004

Security	Shares	Value
Boston Private Financial Holdings Inc.	447	$	12,516
Odyssey Healthcare Inc.1	661		12,460
Silicon Image Inc.1	1,209		12,453
Arrow International Inc.	414		12,374
Hercules Inc.1	1,077		12,364
Maxtor Corp.1	1,515		12,347
Symyx Technologies Inc.1	430		12,315
American Italian Pasta Co. Class A	308		12,298
Veeco Instruments Inc.1	436		12,230
Baldor Electric Co.	527		12,110
Borland Software Corp.1	1,331		12,085
Joy Global Inc.	429		12,042
Select Comfort Corp.1	434		11,974
Hewitt Associates Inc. Class A1	374		11,972
ADVO Inc.	370		11,921
Radio One Inc. Class D1	644		11,914
Flagstar Bancorp Inc.	464		11,902
Bright Horizons Family Solutions Inc.1	252		11,884
Helix Technology Corp.	490		11,883
CoStar Group Inc.1	320		11,805
K-Swiss Inc. Class A	482		11,795
Priceline.com Inc.1	435		11,728
MicroStrategy Inc. Class A1	220		11,726
ANSYS Inc.1	295		11,723
Quest Software Inc.1	717		11,723
Northern Trust Corp.	251		11,694
Wendy’s International Inc.	287		11,678
Anteon International Corp.1	404		11,672
InVision Technologies Inc.1	232		11,523
Community Health Systems Inc.1	414		11,522
Valley National Bancorp	411		11,496
IDT Corp.1	577		11,465
Constellation Brands Inc.1	357		11,460
MGE Energy Inc.	371		11,445
Ascential Software Corp.1	522		11,442
Arrow Electronics Inc.1	449		11,432
Swift Transportation Co. Inc.1	663		11,384
Chelsea Property Group Inc.	180		11,329
Therasense Inc.1	420		11,323
Brady Corp. Class A	297		11,310
AMETEK Inc.	440		11,282
InfoSpace Inc.1	290		11,272
Knight Transportation Inc.1	470		11,271
Digital Insight Corp.1	543		11,251
Tetra Technologies Inc.1	429		11,210
CARBO Ceramics Inc.	178		11,205
Progress Software Corp.1	467		11,203
Kulicke & Soffa Industries Inc.1	951		11,146
EGL Inc.1	618		11,099
United Community Banks Inc.	311		11,084
CONSOL Energy Inc.	412		11,042
Federal Signal Corp.	556		11,037
SPX Corp.	242		11,006
Integra LifeSciences Holdings Corp.1	357		10,931
Dime Community Bancshares	537		10,928
BARRA Inc.	311		10,882
Sotheby’s Holdings Inc. Class A1	846		10,871
Aspect Communications Corp.1	691		10,828
M/I Schottenstein Homes Inc.	229		10,827
Activision Inc.1	682		10,789
CKE Restaurant Inc.1	1,087		10,761
Pixelworks Inc.1	627		10,741
Integrated Device Technology Inc.1	716		10,740
Chicago Mercantile Exchange Holdings Inc.	111		10,738
Crown Castle International Corp.1	850		10,735
WFS Financial Inc.	247		10,700
WMS Industries Inc.1	345		10,695
IDX Systems Corp.1	308		10,657
Pacer International Inc.1	483		10,645
Thoratec Corp.1	852		10,641
Mercury Computer Systems Inc.1	417		10,634
Inter-Tel Inc.	353		10,611
Sapient Corp.1	1,754		10,577
Idex Corp.	242		10,522
Enterasys Networks Inc.1	4,140		10,474
Kyphon Inc.1	438		10,473
AmSurg Corp.1	461		10,458
Atrix Laboratories Inc.1	410		10,455
American Home Mortgage Investment Corp.	363		10,454
Transmeta Corp.1	2,636		10,439

56 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 GROWTH INDEX FUND

March 31, 2004

Security	Shares	Value
Labor Ready Inc.1	771	$	10,424
Tuesday Morning Corp.1	302		10,407
Gymboree Corp.1	619		10,381
Movie Gallery Inc.	529		10,363
Sinclair Broadcast Group Inc. Class A1	829		10,363
Grey Global Group Inc.	15		10,350
Choice Hotels International Inc.	231		10,335
FEI Co.1	472		10,313
Mills Corp.	193		10,285
Diamond Offshore Drilling Inc.	425		10,281
Global Imaging Systems Inc.1	309		10,265
Internet Security Systems Inc.1	581		10,249
Hutchinson Technology Inc.1	365		10,242
Extreme Networks Inc.1	1,419		10,231
Perot Systems Corp. Class A1	769		10,228
SuperGen Inc.1	799		10,227
Salix Pharmaceuticals Ltd.1	351		10,186
Watson Pharmaceuticals Inc.1	238		10,184
Nabi Biopharmaceuticals1	654		10,170
Ultratech Inc.1	436		10,163
Wolverine World Wide Inc.	421		10,159
Hecla Mining Co.1	1,207		10,151
Photon Dynamics Inc.1	311		10,148
Selective Insurance Group Inc.	287		10,065
CharterMac	406		10,061
Wausau-Mosinee Paper Corp.	714		10,060
MKS Instruments Inc.1	418		10,036
United Surgical Partners International Inc.1	295		10,012
BioMarin Pharmaceutical Inc.1	1,331		10,009
TriQuint Semiconductor Inc.1	1,370		10,001
Ventana Medical Systems Inc.1	242		9,912
Golden Telecom Inc.	291		9,903
SERENA Software Inc.1	485		9,870
ElkCorp	364		9,861
Independent Bank Corp. (Michigan)	353		9,835
Magma Design Automation Inc.1	468		9,786
Quicksilver Resources Inc.1	252		9,768
American Medical Systems Holdings Inc.1	367		9,725
Adolor Corp.1	647		9,724
Tektronix Inc.	297		9,715
CIMA Labs Inc.1	309		9,712
Informatica Corp.1	1,128		9,690
Timken Co. (The)	417		9,687
PolyMedica Corp.	360		9,655
Crompton Corp.	1,513		9,653
Wabtec Corp.	677		9,640
Secure Computing Corp.1	589		9,630
Centene Corp.1	314		9,605
Superior Energy Services Inc.1	952		9,596
Nuveen Investments Inc. Class A	343		9,556
ScanSource Inc.1	198		9,492
Lone Star Technologies Inc.1	537		9,489
Corvis Corp.1	4,936		9,477
webMethods Inc.1	1,006		9,456
Coherent Inc.1	359		9,438
Korn/Ferry International1	587		9,392
Actel Corp.1	415		9,391
autobytel.com Inc.1	709		9,359
InterMune Inc.1	480		9,350
ScanSoft Inc.1	1,669		9,330
Rayovac Corp.1	326		9,324
Sycamore Networks Inc.1	2,284		9,319
Keane Inc.1	592		9,318
TIBCO Software Inc.1	1,139		9,306
Exelixis Inc.1	1,088		9,302
Vignette Corp.1	4,490		9,294
Cabot Oil & Gas Corp.	304		9,290
Guitar Center Inc.1	250		9,285
Pinnacle Systems Inc.1	1,026		9,265
PTEK Holdings Inc.1	1,008		9,264
Possis Medical Inc.1	329		9,255
Hovnanian Enterprises Inc. Class A1	214		9,234
Remington Oil & Gas Corp.1	467		9,223
Cray Inc.1	1,389		9,209
Wright Medical Group Inc.1	299		9,179
Multimedia Games Inc.1	370		9,154
Beverly Enterprises Inc.1	1,420		9,088
Manor Care Inc.	256		9,034
Benchmark Electronics Inc.1	285		8,972
United Therapeutics Inc.1	376		8,960

SCHEDULES OF INVESTMENTS 57

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 GROWTH INDEX FUND

March 31, 2004

Security	Shares	Value
Eclipsys Corp.1	664	$	8,951
Leucadia National Corp.	168		8,951
Werner Enterprises Inc.	472		8,944
Invacare Corp.	198		8,938
Genta Inc.1	847		8,894
Noven Pharmaceuticals Inc.1	412		8,846
eSpeed, Inc.1	422		8,845
Electronics Boutique Holdings Corp.1	301		8,837
Georgia Gulf Corp.	293		8,834
Regeneron Pharmaceuticals Inc.1	650		8,827
C-COR.net Corp.1	627		8,791
MSC Industrial Direct Co. Inc. Class A	293		8,775
Merit Medical Systems Inc.1	405		8,764
Sohu.com Inc.1	351		8,736
Discovery Laboratories Inc.1	713		8,691
RealNetworks Inc.1	1,442		8,652
Borders Group Inc.	364		8,642
Viasat Inc.1	347		8,633
PalmOne Inc.1	404		8,629
St. Mary Land & Exploration Co.	258		8,625
Old Dominion Freight Line Inc.1	255		8,594
Pre-Paid Legal Services Inc.1	350		8,568
Harbor Florida Bancshares Inc.	296		8,566
Gevity HR Inc.	293		8,556
Encysive Pharmaceuticals Inc.1	832		8,553
Westamerica Bancorp	169		8,528
Serologicals Corp.1	416		8,486
Geron Corp.1	899		8,451
Intuitive Surgical Inc.1	497		8,449
Mykrolis Corp.1	590		8,413
Epicor Software Corp.1	631		8,373
Investment Technology Group Inc.1	545		8,339
Cyberonics Inc.1	348		8,338
Alliance Data Systems Corp.1	248		8,320
Euronet Worldwide Inc.1	437		8,307
LabOne Inc.1	273		8,299
Agile Software Corp.1	948		8,295
Wind River Systems Inc.1	742		8,214
Penn Virginia Corp.	135		8,181
Harris Interactive Inc.1	969		8,169
j2 Global Communications Inc.1	362		8,167
First Tennessee National Corp.	171		8,157
OraSure Technologies Inc.1	787		8,153
aQuantive, Inc.1	848		8,141
ExpressJet Holdings Inc.1	653		8,123
Advisory Board Co. (The)1	222		8,114
Rollins Inc.	313		8,066
Ferro Corp.	308		8,054
Asyst Technologies Inc.1	978		8,049
Digene Corp.1	234		8,040
Reebok International Ltd.	193		7,981
Radian Group Inc.	187		7,966
CV Therapeutics Inc.1	525		7,943
Hydril1	303		7,939
Cousins Properties Inc.	242		7,935
Microsemi Corp.1	580		7,934
ESCO Technologies Inc.1	172		7,933
Oriental Financial Group Inc.	249		7,931
Sterling Bancshares Inc.	592		7,927
BioLase Technology Inc.1	452		7,915
Genesis Microchip Inc.1	472		7,911
Mercantile Bankshares Corp.	184		7,906
Dendrite International Inc.1	494		7,904
Mattson Technology Inc.1	660		7,894
Tanox Inc.1	530		7,892
Dot Hill Systems Corp.1	786		7,876
Mindspeed Technologies Inc.1	1,203		7,856
Alexander’s Inc.1	49		7,840
Silgan Holdings Inc.1	171		7,820
Casual Male Retail Group Inc.1	754		7,796
U.S.I. Holdings Corp.1	526		7,780
Main Street Banks Inc.	284		7,765
Wynn Resorts Ltd.1	220		7,700
CTI Molecular Imaging Inc.1	527		7,689
Kopin Corp.1	1,329		7,682
Retek Inc.1	1,014		7,666
Pentair Inc.	129		7,611
Essex Property Trust Inc.	116		7,598
Mueller Industries Inc.	223		7,580
West Corp.1	303		7,545
Steel Dynamics Inc.1	304		7,533
Exar Corp.1	407		7,529

58 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 GROWTH INDEX FUND

March 31, 2004

Security	Shares	Value
Myriad Genetics Inc.1	464	$	7,526
Pioneer Natural Resources Co.	232		7,494
Chattem Inc.1	289		7,491
Advent Software Inc.1	400		7,480
Umpqua Holdings Corp.	368		7,430
CSK Auto Corp.1	410		7,425
Cox Radio Inc. Class A1	347		7,391
Micromuse Inc.1	946		7,379
POZEN Inc.1	533		7,366
Sharper Image Corp.1	225		7,331
At Road Inc.1	596		7,313
Identix Inc.1	1,264		7,305
Fidelity National Financial Inc.	184		7,286
CIBER Inc.1	662		7,282
Epix Medical Inc.1	350		7,262
Kelly Services Inc. Class A	245		7,254
7-Eleven Inc.1	478		7,251
X-Rite Inc.	486		7,237
Children’s Place Retail Stores Inc. (The)1	233		7,216
Oakley Inc.	486		7,212
Hibbet Sporting Goods Inc.1	189		7,208
Bowne & Co. Inc.	421		7,199
Vector Group Ltd.	423		7,191
Plexus Corp.1	404		7,187
ChipPAC Inc. Class A1	907		7,174
MB Financial Inc.	184		7,174
Brown-Forman Corp. Class B	150		7,149
Interactive Data Corp.1	400		7,112
FuelCell Energy Inc.1	524		7,105
Westell Technologies Inc. Class A1	970		7,081
Mediacom Communications Corp.1	881		7,066
BearingPoint Inc.1	659		7,064
Perrigo Co.	352		7,058
Tyler Technologies Inc.1	723		7,020
SRA International Inc. Class A1	190		7,019
Synaptics Inc.1	400		7,016
ARIAD Pharmaceuticals Inc.1	739		6,991
GrafTech International Ltd.1	466		6,967
Sandy Spring Bancorp Inc.	192		6,966
Cascade Bancorp	302		6,937
Isis Pharmaceuticals Inc.1	894		6,937
World Acceptance Corp.1	354		6,907
Axcelis Technologies Inc.1	620		6,894
VistaCare Inc. Class A1	255		6,890
Frontier Oil Corp.	354		6,861
Zenith National Insurance Corp.	175		6,860
Zoll Medical Corp.1	171		6,837
Alaris Medical Systems Inc.1	366		6,826
Ceradyne Inc.1	188		6,796
World Fuel Services Corp.	185		6,795
Ambac Financial Group Inc.	92		6,788
Getty Realty Corp.	255		6,775
LeapFrog Enterprises Inc.1	350		6,773
ON Semiconductor Corp.1	898		6,771
Enzo Biochem Inc.1	402		6,766
StarTek Inc.	186		6,759
Glimcher Realty Trust	249		6,748
SupportSoft Inc.1	609		6,705
ArthroCare Corp.1	289		6,679
Coinstar Inc.1	420		6,665
Sonic Solutions Inc.1	351		6,655
Wireless Facilities Inc.1	602		6,628
Bank of the Ozarks Inc.	240		6,612
Newpark Resources Inc.1	1,271		6,609
Cleveland-Cliffs Inc.1	101		6,608
Powerwave Technologies Inc.1	845		6,591
SureWest Communications	246		6,590
Verity Inc.1	482		6,589
Presstek Inc.1	604		6,572
Itron Inc.1	353		6,569
Portfolio Recovery Associates Inc.1	243		6,546
Orthologic Corp.1	844		6,541
Comtech Telecommunications Corp.1	281		6,519
Accredited Home Lenders Holding Co.1	165		6,501
Alabama National Bancorp	117		6,496
Sanderson Farms Inc.	176		6,464
Red Robin Gourmet Burgers1	226		6,418
Delphi Corp.	644		6,414
Hooper Holmes Inc.	1,027		6,408
Artisan Components Inc.1	287		6,397
Administaff Inc.1	366		6,379

SCHEDULES OF INVESTMENTS 59

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 GROWTH INDEX FUND

March 31, 2004

Security	Shares	Value
AC Moore Arts & Crafts Inc.1	236	$	6,372
West Marine Inc.1	199		6,338
Hanover Compressor Co.1	524		6,335
infoUSA Inc.1	601		6,317
New Jersey Resources Corp.	167		6,313
Applied Signal Technology Inc.	231		6,311
City Holding Co.	184		6,311
Suffolk Bancorp	184		6,302
ManTech International Corp. Class A1	307		6,290
Advanced Energy Industries Inc.1	308		6,280
Photronics Inc.1	354		6,280
Holly Corp.	197		6,276
Xicor Inc.1	412		6,271
Joseph A. Bank Clothiers Inc.1	174		6,264
Altiris Inc.1	224		6,259
Komag Inc.1	340		6,256
TiVo Inc.1	702		6,241
Lionbridge Technologies Inc.1	640		6,227
eCollege.com Inc.1	298		6,222
WD-40 Co.	177		6,195
W-H Energy Services Inc.1	428		6,193
Southern Peru Copper Corp.	153		6,189
West Bancorporation	366		6,185
Westport Resources Corp.1	187		6,169
Republic Bancorp Inc.	438		6,158
Stratex Networks Inc.1	1,292		6,137
Superior Industries International Inc.	173		6,131
II-VI Inc.1	249		6,088
Candela Corp.1	444		6,087
Westcorp Inc.	138		6,082
Corixa Corp.1	949		6,076
Concur Technologies Inc.1	542		6,070
Regeneration Technologies Inc.1	531		6,027
FreeMarkets Inc.1	731		6,016
Ameristar Casinos Inc.1	178		6,007
Cell Therapeutics Inc.1	710		6,007
Inspire Pharmaceuticals Inc.1	465		5,989
Keithley Instruments Inc.	289		5,985
Integrated Electrical Services Inc.1	532		5,980
Bombay Co. Inc. (The)1	761		5,974
KFx Inc.1	574		5,964
Audiovox Corp. Class A1	298		5,960
MBT Financial Corp.	345		5,934
Able Laboratories Inc.1	303		5,918
United States Cellular Corp.1	153		5,913
Trex Co. Inc.1	173		5,901
North Pittsburgh Systems Inc.	293		5,898
NeoPharm Inc.1	313		5,872
Comstock Resources Inc.1	295		5,862
Barnes & Noble Inc.1	179		5,835
Jill (J.) Group Inc. (The)1	284		5,828
Biosite Inc.1	182		5,819
Immucor Inc.1	321		5,817
Credence Systems Corp.1	489		5,809
Genesee & Wyoming Inc. Class A1	235		5,805
S&T Bancorp Inc.	193		5,802
California Pizza Kitchen Inc.1	290		5,800
SeaChange International Inc.1	379		5,799
Forward Air Corp.1	176		5,785
Charles River Associates Inc.1	176		5,770
Autodesk Inc.	182		5,755
General Cable Corp.1	779		5,749
Sterling Bancorp (New York)	197		5,743
Oil States International Inc.1	427		5,739
Veritas DGC Inc.1	277		5,734
Electronics For Imaging Inc.1	233		5,725
Papa John’s International Inc.1	169		5,719
PSS World Medical Inc.1	511		5,718
ICU Medical Inc.1	188		5,710
Plains Resource Inc.1	314		5,709
Intrado Inc.1	295		5,708
Orbital Sciences Corp.1	453		5,676
Standard Microsystems Corp.1	212		5,648
Pegasus Solutions Inc.1	483		5,641
Packeteer Inc.1	425		5,610
Cable Design Technologies Corp.1	591		5,603
Daktronics Inc.1	248		5,597
KCS Energy Inc.1	522		5,585
Royal Gold Inc.	315		5,579
Aaron Rents Inc.	224		5,575
Opsware Inc.1	736		5,564
FindWhat.com1	256		5,542

60 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 GROWTH INDEX FUND

March 31, 2004

Security	Shares	Value
Cubist Pharmaceuticals Inc.1	602	$	5,538
Excel Technology Inc.1	176		5,535
Hancock Fabrics Inc.	348		5,530
Raven Industries Inc.	179		5,477
SPSS Inc.1	298		5,453
Kaydon Corp.	198		5,451
Penwest Pharmaceuticals Co.1	373		5,450
Echelon Corp.1	480		5,410
Argosy Gaming Co.1	152		5,404
Quantum Corp.1	1,458		5,395
Speedway Motorsports Inc.	178		5,395
Heidrick & Struggles International Inc.1	225		5,384
Aceto Corp.	342		5,373
PrivateBancorp Inc.	104		5,364
Interpublic Group of Companies Inc.1	348		5,352
TriPath Imaging Inc.1	584		5,349
Old Second Bancorp Inc.	104		5,348
United Stationers Inc.1	127		5,347
SonoSite Inc.1	250		5,333
Vulcan Materials Co.	112		5,313
Ryerson Tull Inc.	403		5,275
O’Charley’s Inc.1	288		5,256
Per-Se Technologies Inc.1	469		5,253
Darling International Inc.1	1,544		5,250
Sports Authority Inc. (The)1	131		5,250
Independent Bank Corp. (Massachusetts)	173		5,244
Vicor Corp.1	427		5,239
Commercial Capital Bancorp Inc.1	228		5,233
A.S.V. Inc.1	172		5,229
Applied Films Corporation1	187		5,217
MatrixOne Inc.1	718		5,213
SpectraLink Corp.	306		5,211
Rewards Network Inc.1	520		5,200
Bei Technologies Inc.	231		5,188
USANA Health Sciences Inc.1	222		5,179
Consolidated-Tomoka Land Co.	139		5,160
Verint Systems Inc.1	166		5,129
Arch Coal Inc.	163		5,117
Spanish Broadcasting System Inc. Class A1	488		5,100
TALK America Holdings Inc.1	602		5,099
PAREXEL International Corp.1	285		5,093
SeeBeyond Technology Corp.1	1,254		5,079
American Medical Security Group Inc.1	190		5,075
Palm Harbor Homes Inc.1	242		5,072
Gladstone Capital Corp.	225		5,060
Cepheid Inc.1	543		5,055
Big 5 Sporting Goods Corp.1	200		5,050
VIVUS Inc.1	829		5,032
Sound Federal Bancorp Inc.	341		5,013
Blue Rhino Corp.1	295		4,997
EPIQ Systems Inc.1	305		4,996
21st Century Insurance Group	346		4,982
Transkaryotic Therapies Inc.1	288		4,942
Zymogenetics Inc.1	319		4,929
FalconStor Software Inc.1	666		4,927
Finisar Corp.1	2,258		4,922
SurModics Inc.1	247		4,918
Entrust Inc.1	1,123		4,908
Manufactured Home Communities Inc.	139		4,907
SFBC International Inc.1	164		4,881
Symmetricom Inc.1	544		4,880
PC-Tel Inc.1	472		4,876
Arrow Financial Corp.	163		4,867
Omnicell Inc.1	245		4,853
HealthExtras Inc.1	422		4,845
Gentiva Health Services Inc.1	312		4,833
Warnaco Group Inc. (The)1	240		4,822
Salem Communications Corp. Class A1	176		4,819
Digitas Inc.1	468		4,816
Lithia Motors Inc. Class A	174		4,811
Seattle Genetics Inc.1	568		4,805
Plains Exploration & Production Co.1	257		4,790
Impac Mortgage Holdings Inc.	175		4,760
Nu Skin Enterprises Inc. Class A	236		4,755
Linens ‘n Things Inc.1	134		4,745
SS&C Technologies Inc.	195		4,733
Inverness Medical Innovations Inc.1	258		4,721
American Woodmark Corp.	71		4,719
Palatin Technologies Inc.1	1,131		4,716

SCHEDULES OF INVESTMENTS 61

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 GROWTH INDEX FUND

March 31, 2004

Security	Shares	Value
Coldwater Creek Inc.1	221	$	4,712
Isle of Capri Casinos Inc.1	187		4,701
Monolithic System Technology Inc.1	351		4,700
American West Holdings Corp. Class B1	492		4,689
DHB Industries Inc.1	635		4,680
Yellow Roadway Corp.1	139		4,680
Tollgrade Communications Inc.1	293		4,676
Overstock.com Inc.1	151		4,663
Western Sierra Bancorp1	106		4,659
Tejon Ranch Co.1	126		4,657
IndyMac Bancorp Inc.	128		4,645
First Horizon Pharmaceutical Corp.1	294		4,633
Bausch & Lomb Inc.	77		4,618
1-800-FLOWERS.COM Inc.1	482		4,613
Molecular Devices Corp.1	244		4,597
National Healthcare Corp.1	176		4,576
Convergys Corp.1	301		4,575
Macatawa Bank Corp.	164		4,571
Ixia1	422		4,566
DOV Pharmaceutical Inc.1	294		4,563
United Security Bancshares Inc.	172		4,549
SciClone Pharmaceuticals Inc.1	842		4,547
AnnTaylor Stores Corp.1	106		4,537
Transatlantic Holdings Inc.	52		4,535
Nuvelo Inc.1	361		4,534
Philadelphia Consolidated Holding Corp.1	78		4,524
Medical Action Industries Inc.1	221		4,517
Pain Therapeutics Inc.1	647		4,497
Charter Financial Corp.	114		4,488
Lindsay Manufacturing Co.	185		4,455
Manugistics Group Inc.1	650		4,453
Source Interlink Companies Inc.1	356		4,450
Interpore International1	309		4,443
BioVeris Corp.1	373		4,420
CorVel Corp.1	122		4,416
Laserscope1	223		4,411
Keystone Automotive Industries Inc.1	161		4,405
Frontier Financial Corp.	128		4,402
Franklin Electric Co. Inc.	69		4,394
CNB Financial Corp.	101		4,392
Cole National Corp.1	199		4,392
DJ Orthopedics Inc.1	169		4,369
Ciphergen Biosystems Inc.1	524		4,365
Entravision Communications Corp.1	483		4,333
Concord Communications Inc.1	300		4,323
Prima Energy Corp.1	125		4,319
GSI Commerce Inc.1	425		4,314
Boston Communications Group Inc.1	364		4,313
Bradley Pharmaceuticals Inc.1	169		4,255
Coastal Financial Corp.	262		4,254
Shore Bancshares Inc.	130		4,238
Drugstore.com Inc.1	787		4,234
Peapack-Gladstone Financial Corp.	125		4,233
Mercantile Bank Corp.	119		4,225
Cirrus Logic Inc.1	557		4,222
Mobile Mini Inc.1	244		4,221
Kirkland’s Inc.1	258		4,213
Wild Oats Markets Inc.1	356		4,211
Sturm Ruger & Co. Inc.	311		4,202
Landauer Inc.	100		4,200
Cardiac Science Inc.1	959		4,191
Midwest Banc Holdings Inc.	177		4,183
QAD Inc.1	315		4,180
Concurrent Computer Corp.1	1,202		4,147
Diodes Inc.1	190		4,144
Saga Communications Inc.1	222		4,140
Quality Systems Inc.1	91		4,134
Gibraltar Steel Corp.	168		4,129
First Bancorp (North Carolina)	131		4,125
Peregrine Pharmaceuticals Inc.1	1,683		4,123
CardioDynamics International Corp.1	651		4,114
German American Bancorp	241		4,109
Conceptus Inc.1	344		4,100
National Penn Bancshares Inc.	130		4,099
BroadVision Inc.1	665		4,076
MRO Software Inc.1	348		4,044
Virginia Commerce Bancorp Inc.1	135		4,037
Allscripts Healthcare Solutions Inc.1	416		4,035
Cherokee Inc.	172		4,035
Dendreon Corp.1	303		4,030
Berkley (W.R.) Corp.	101		4,028

62 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 GROWTH INDEX FUND

March 31, 2004

Security	Shares	Value
MTC Technologies Inc.1	160	$	4,018
Lakeland Bancorp Inc.	244		4,016
Great Southern Bancorp Inc.	81		3,980
TALX Corp.	181		3,973
Resource Bankshares Corp.	121		3,945
Tanger Factory Outlet Centers Inc.	87		3,943
Aspen Technology Inc.1	482		3,938
Universal Display Corp.1	306		3,926
Florida Rock Industries Inc.	93		3,920
Avant Immunotherapeutics Inc.1	1,554		3,916
Gulf Island Fabrication Inc.	190		3,865
iPayment Holdings Inc.1	116		3,858
Nara Bancorp Inc.	130		3,851
Kadant Inc.1	184		3,836
Drew Industries Inc.1	109		3,824
ValueVision Media Inc. Class A1	248		3,807
IMPAC Medical Systems Inc.1	169		3,803
Bankrate Inc.1	190		3,783
PennRock Financial Services Corp.	132		3,775
WellChoice Inc.1	102		3,764
Group 1 Software Inc.1	231		3,761
Greene County Bancshares Inc.	167		3,746
Staar Surgical Co.1	417		3,740
Playtex Products Inc.1	539		3,724
Kosan Biosciences Inc.1	352		3,721
Clayton Williams Energy Inc.1	107		3,713
Avanex Corp.1	857		3,702
Yadkin Valley Bank & Trust Co.	221		3,702
Peet’s Coffee & Tea Inc.1	173		3,685
CTS Corp.	282		3,677
MTR Gaming Group Inc.1	367		3,670
Shenandoah Telecommunications Co.	160		3,656
Hudson Highland Group Inc.1	130		3,624
Aspect Medical Systems Inc.1	243		3,621
Quaker City Bancorp Inc.	66		3,590
Trimeris Inc.1	242		3,570
Penns Woods Bancorp Inc.	79		3,561
Anixter International Inc.	126		3,559
Alberto-Culver Co.	81		3,553
REMEC Inc.1	467		3,549
Fargo Electronics1	314		3,548
Nautilus Group Inc. (The)	225		3,544
LaBranche & Co. Inc.	316		3,542
Connecticut Bankshares Inc.	68		3,533
Indevus Pharmaceuticals Inc.1	584		3,533
Neoware Systems Inc.1	344		3,533
Young Broadcasting Inc. Class A1	195		3,530
Scotts Co. (The) Class A1	55		3,528
Kana Software Inc.1	778		3,509
America’s Car-Mart Inc.1	130		3,503
Resource America Inc. Class A	189		3,497
Playboy Enterprises Inc. Class B1	249		3,491
SM&A1	317		3,490
Warwick Valley Telephone Co.	136		3,475
Metrologic Instruments Inc.1	148		3,463
Forrester Research Inc.1	182		3,449
Stoneridge Inc.1	239		3,446
Citizens Inc.1	459		3,420
Integral Systems Inc.	180		3,420
Intermagnetics General Corp.1	129		3,419
Fisher Communications Inc.1	70		3,412
United Industrial Corp.	180		3,409
CyberGuard Corp.1	345		3,398
Rudolph Technologies Inc.1	180		3,371
Stratasys Inc.1	177		3,368
Standard Commercial Corp.	181		3,358
Exult Inc.1	537		3,346
Verso Technologies Inc.1	2,003		3,345
Zhone Technologies Inc.1	860		3,345
KVH Industries Inc.1	231		3,329
Tompkins Trustco Inc.	73		3,322
Exactech Inc.1	180		3,312
TriZetto Group Inc. (The)1	427		3,309
Central Pacific Financial Corp.	111		3,307
Columbia Laboratories Inc.1	668		3,307
Intellisync Corp.1	1,005		3,306
Haemonetics Corp.1	105		3,302
SBA Communications Corp.1	850		3,298
GB&T Bancshares Inc.	117		3,294
CDI Corp.	102		3,293
TRC Companies Inc.1	176		3,293
Computer Programs & Systems Inc.	172		3,268

SCHEDULES OF INVESTMENTS 63

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 GROWTH INDEX FUND

March 31, 2004

Security	Shares	Value
Progenics Pharmaceuticals Inc.1	172	$	3,268
Ansoft Corp.1	226		3,259
NIC Inc.1	539		3,256
Syntel Inc.	118		3,250
Planar Systems Inc.1	228		3,244
Star Scientific Inc.1	784		3,238
First Community Bancshares Inc.	106		3,237
Westmoreland Coal Co.1	176		3,230
Antigenics Inc.1	302		3,219
E-LOAN Inc.1	1,035		3,219
IBT Bancorp Inc.	67		3,219
Coca-Cola Bottling Co. Consolidated	63		3,216
Immunomedics Inc.1	790		3,200
Luminex Corp.1	353		3,195
Raindance Communications Inc.1	1,121		3,195
Covenant Transport Inc. Class A1	177		3,191
Portal Software Inc.1	471		3,175
Synovis Life Technologies Inc.1	222		3,172
Keynote Systems Inc.1	246		3,166
Closure Medical Corp.1	115		3,162
C&D Technologies Inc.	189		3,158
Capital City Bank Group Inc.	76		3,135
First Financial Bankshares Inc.	78		3,125
Network Equipment Technologies Inc.1	313		3,124
Mesa Air Group Inc.1	378		3,122
Bank Mutual Corp.	278		3,108
Kensey Nash Corp.1	126		3,106
Lightbridge Inc.1	526		3,103
FFLC Bancorp Inc.	115		3,095
Hickory Tech Corp.	249		3,095
Netegrity Inc.1	364		3,094
Interwoven Inc1	309		3,081
Third Wave Technologies Inc.1	666		3,070
Aksys Ltd.1	472		3,063
CollaGenex Pharmaceuticals Inc.1	229		3,050
Valence Technology Inc.1	684		3,044
Erie Indemnity Co. Class A	63		3,040
Alexandria Real Estate Equities Inc.	48		3,024
Medis Technologies Ltd.1	228		3,021
Cubic Corp.	116		3,016
Columbia Bancorp (Oregon)	183		3,001
MSC.Software Corp.1	338		2,978
Monro Muffler Brake Inc.1	119		2,974
Inet Technologies Inc.1	239		2,966
Reading International Inc. Class A1	432		2,959
VitalWorks Inc.1	788		2,955
CuraGen Corp.1	473		2,952
Federal Agricultural Mortgage Corp.1	112		2,936
Proxim Corp. Class A1	1,657		2,933
Sigma Designs Inc.1	407		2,918
Superconductor Technologies Inc.1	1,266		2,912
SY Bancorp Inc.	130		2,912
Energy Conversion Devices Inc.1	297		2,911
MEMC Electronics Materials Inc.1	318		2,910
Heritage Financial Corp.	139		2,904
First Citizens Banc Corp.	109		2,900
Renaissance Learning Inc.	110		2,899
TradeStation Group Inc.1	428		2,880
Provident Bancorp Inc.	242		2,868
California Water Service Group	101		2,857
Weyco Group Inc.	78		2,856
Otter Tail Corp.	108		2,853
IXYS Corp.1	300		2,820
Courier Corp.	63		2,819
Plug Power Inc.1	365		2,818
Middlesex Water Co.	136		2,815
Bentley Pharmaceuticals Inc.1	234		2,810
Heartland Financial USA Inc.	150		2,798
Ambassadors Group Inc.	113		2,794
United Mobile Homes Inc.	173		2,787
Cavalry Bancorp Inc.	165		2,784
Arris Group Inc.1	302		2,778
Community Banks Inc.	89		2,773
Net2Phone Inc.1	533		2,772
State Bancorp Inc.	115		2,772
Three-Five Systems Inc.1	422		2,764
Triarc Companies Inc. Class B	250		2,740
Diversa Corp.1	308		2,729
LookSmart Ltd.1	1,385		2,728
Libbey Inc.	105		2,723
Innovex Inc.1	400		2,716
OPNET Technologies Inc.1	182		2,714

64 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 GROWTH INDEX FUND

March 31, 2004

Security	Shares	Value
Community Bank of Northern Virginia	159	$	2,711
GulfMark Offshore Inc.1	171		2,686
LNB Bancorp Inc.	130		2,681
Mail-Well Inc.1	599		2,678
Option Care Inc.1	234		2,665
MarketWatch.com Inc.1	190		2,649
CEVA Inc.1	280		2,634
First Federal Financial of Kentucky	100		2,630
Concord Camera Corp.1	418		2,625
Nassda Corp.1	378		2,623
Bone Care International Inc.1	131		2,620
Prosperity Bancshares Inc.	111		2,615
Hexcel Corp.1	358		2,606
Abgenix Inc.1	196		2,605
Tredegar Corp.	178		2,604
CoBiz Inc.	127		2,595
Princeton Review Inc. (The)1	300		2,592
Enstar Group Inc.1	56		2,584
Quidel Corp.1	391		2,577
Carmike Cinemas Inc.1	69		2,572
Sierra Bancorp	169		2,560
Central European Distribution Corp.1	79		2,555
Midway Games Inc.1	350		2,548
Quixote Corp.	121		2,545
Polo Ralph Lauren Corp.	74		2,537
McMoRan Exploration Co.1	171		2,531
Marine Products Corp.	180		2,518
Fluor Corp.	65		2,515
La Jolla Pharmaceutical Co.1	910		2,512
First State Bancorp	81		2,500
Lifeline Systems Inc.1	132		2,493
Mobius Management Systems Inc.1	273		2,492
Meridian Bioscience Inc.	242		2,466
U.S. Physical Therapy Inc.1	178		2,456
Centillium Communications Inc.1	541		2,445
OSI Systems Inc.1	122		2,440
Chicago Pizza & Brewery Inc.1	186		2,431
Steak n Shake Company (The)1	126		2,426
Arena Pharmaceuticals Inc.1	373		2,424
Savient Pharmaceuticals Inc.1	640		2,419
Iomega Corp.	432		2,415
LNR Property Corp.	45		2,409
Computer Network Technology Corp.1	301		2,408
Charlotte Russe Holding Inc.1	131		2,397
Genencor International Inc.1	180		2,396
Flag Financial Corp.	187		2,395
Medical Staffing Network Holdings Inc.1	304		2,392
Methode Electronics Inc.	185		2,387
White Electronic Designs Corp.1	312		2,387
Young Innovations Inc.	68		2,386
Adaptec Inc.1	271		2,374
Capital Automotive	67		2,366
Analogic Corp.	52		2,365
Osteotech Inc.1	366		2,361
Kenneth Cole Productions Class A	69		2,353
P.A.M. Transportation Services Inc.1	136		2,353
School Specialty Inc.1	66		2,348
Encore Wire Corp.1	63		2,347
Drexler Technology Corp.1	171		2,343
Gabelli Asset Management Inc. Class A	58		2,336
Virginia Financial Group Inc.	67		2,328
C&F Financial Corp.	57		2,323
Universal Electronics Inc.1	176		2,323
Blockbuster Inc.	132		2,310
Vital Images Inc.1	230		2,309
DigitalThink Inc.1	974		2,308
GameStop Corp.1	128		2,307
Great Atlantic & Pacific Tea Co.1	297		2,299
Del Laboratories Inc.1	69		2,291
CompuCredit Corp.1	108		2,283
Net.B@nk Inc.	187		2,283
Bebe Stores Inc.1	68		2,281
Sun Communities Inc.	53		2,269
PEC Solutions Inc.1	171		2,261
Stellent Inc.1	302		2,256
Triton PCS Holdings Inc. Class A1	410		2,251
PDF Solutions Inc.1	195		2,244
FMS Financial Corp.	127		2,222
Tennant Co.	56		2,222
First South Bancorp Inc.	57		2,212
Hi-Tech Pharmacal Co.1	112		2,190
Arden Group Inc. Class A	29		2,189

SCHEDULES OF INVESTMENTS 65

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 GROWTH INDEX FUND

March 31, 2004

Security	Shares	Value
Cantel Medical Corp.1	122	$	2,183
Repligen Corp.1	725		2,182
Overland Storage Inc.1	128		2,170
Bay View Capital Corp.	969		2,161
ACLARA BioSciences Inc.1	551		2,160
Old Point Financial Corp.	72		2,160
United PanAm Financial Corp.1	135		2,159
Insight Enterprises Inc.1	112		2,156
Strattec Security Corp.1	34		2,153
Synplicity Inc.1	298		2,146
Southern Financial Bancorp Inc.	48		2,141
Hollis-Eden Pharmaceuticals1	221		2,133
Digimarc Corp.1	172		2,128
TheStreet.com Inc.1	467		2,125
Information Holdings Inc.1	103		2,124
Valspar Corp. (The)	43		2,117
Commercial Bankshares Inc.	78		2,115
Beasley Broadcast Group Inc. Class A1	120		2,112
Radiant Systems Inc.1	351		2,110
Farmers Capital Bank Corp.	60		2,100
U.S. Restaurant Properties Inc.	112		2,099
CPI Corp.	110		2,093
Kronos Worldwide Inc.	69		2,089
Center Financial Corp.	132		2,078
NASB Financial Inc.	52		2,069
Neose Technologies Inc.1	220		2,068
Group 1 Automotive Inc.1	57		2,063
ValueClick Inc.1	191		2,063
Center Bancorp Inc.	130		2,055
Embarcadero Technologies Inc.1	160		2,054
Catapult Communications Corp.1	115		2,050
Cholestech Corp.1	232		2,042
Brookstone Inc.1	74		2,036
SAFLINK Corp.1	660		2,033
Durect Corp.1	597		2,030
MAXIMUS Inc.1	58		2,030
NBC Capital Corp.	78		2,028
Maritrans Inc.	129		2,027
1-800 CONTACTS INC.1	115		2,025
Neoforma Inc.1	185		2,011
Martha Stewart Living Omnimedia Inc. Class A1	182		2,002
Albemarle Corp.	69		2,001
NetRatings Inc.1	181		2,000
Albany International Corp. Class A	74		1,990
Hawthorne Financial Corp.1	45		1,980
Hudson United Bancorp	52		1,979
General Binding Corp.1	116		1,972
Smith (A.O.) Corp.	68		1,969
MAPICS Inc.1	243		1,963
S1 Corp.1	258		1,961
Siliconix Inc.1	42		1,958
WatchGuard Technologies Inc.1	250		1,955
Supertex Inc.1	117		1,952
PalmSource Inc.1	107		1,944
TTM Technologies Inc.1	157		1,934
Stewart & Stevenson Services Inc.	132		1,930
Regent Communications Inc.1	296		1,927
Summit Bancshares Inc.	64		1,926
Pemstar Inc.1	526		1,920
Aether Systems Inc.1	411		1,911
Sanchez Computer Associates Inc.1	292		1,910
Anaren Inc.1	121		1,909
NL Industries Inc.	137		1,904
CCC Information Services Group Inc.1	106		1,884
Duane Reade Inc.1	111		1,880
Glacier Bancorp Inc.	58		1,871
Spartech Corp.	75		1,868
AsiaInfo Holdings Inc.1	284		1,852
Learning Tree International Inc.1	116		1,843
Navigators Group Inc.1	64		1,842
Clean Harbors Inc.1	248		1,838
CryoLife Inc.1	307		1,827
CT Communications Inc.	132		1,826
Sterling Financial Corp. (Pennsylvania)	71		1,825
First Busey Corp. Class A	67		1,816
Compuware Corp.1	241		1,795
Armor Holdings Inc.1	54		1,787
Exact Sciences Corp.1	230		1,787
APAC Customer Services Inc.1	603		1,779
Franklin Financial Corp.	56		1,767

66 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 GROWTH INDEX FUND

March 31, 2004

Security	Shares	Value
Bruker BioSciences Corp.1	350	$	1,753
Research Frontiers Inc.1	180		1,750
Virage Logic Corp.1	188		1,739
Cross Country Healthcare Inc.1	104		1,732
Vans Inc.1	117		1,732
Party City Corp.1	116		1,727
Datastream Systems Inc.1	241		1,726
Lannett Co. Inc.1	103		1,720
Scholastic Corp.1	63		1,717
Town & Country Trust (The)	63		1,714
NCI Building Systems Inc.1	73		1,713
Security Bank Corp.	57		1,710
AAR Corp.1	139		1,707
Capitol Bancorp Ltd.	63		1,707
McGrath Rentcorp	56		1,707
Riviana Foods Inc.	61		1,702
Jefferies Group Inc.	48		1,696
Park Electrochemical Corp.	67		1,695
AVI BioPharma Inc.1	558		1,691
Apogent Technologies Inc.1	55		1,687
Fremont General Corp.	55		1,683
Sun Bancorp Inc. (Pennsylvania)	86		1,677
USB Holding Co. Inc.	68		1,669
Aphton Corp.1	355		1,668
Clark Inc.1	98		1,666
Nelson (Thomas) Inc.	61		1,660
Newtek Business Services Inc.1	319		1,659
Southwest Water Co.	121		1,654
PDI Inc.1	65		1,644
Berry Petroleum Co. Class A	60		1,637
Universal Health Realty Income Trust	48		1,618
Oplink Communications Inc.1	641		1,609
Irwin Financial Corp.	59		1,592
Micro Therapeutics Inc.1	378		1,588
InteliData Technologies Corp.1	1,278		1,585
First Financial Holdings Inc.	53		1,584
Novoste Corp.1	467		1,583
Ocular Sciences Inc.1	54		1,574
Inter Parfums Inc.	68		1,563
GTC Biotherapeutics Inc.1	709		1,560
Quaker Chemical Corp.	61		1,549
Digital Generation Systems Inc.1	1,022		1,543
Alteon Inc.1	847		1,525
Hain Celestial Group Inc.1	69		1,524
Offshore Logistics Inc.1	66		1,521
Convera Corp.1	427		1,516
aaiPharma Inc.1	228		1,512
Saxon Capital Inc.1	53		1,506
Tootsie Roll Industries Inc.	41		1,506
MIM Corp.1	196		1,491
deCODE genetics Inc.1	140		1,484
Summit America Television Inc.1	366		1,479
OshKosh B’Gosh Inc. Class A	63		1,474
Cohu Inc.	79		1,473
FNB Corp. (North Carolina)	69		1,470
Retractable Technologies Inc.1	234		1,470
York International Corp.	37		1,454
Eastern Virginia Bankshares	63		1,451
Curative Health Services Inc.1	108		1,447
La-Z-Boy Inc.	66		1,436
THQ Inc.1	71		1,436
Manitowoc Co. Inc. (The)	48		1,420
SCS Transportation Inc.1	65		1,417
Zale Corp.1	23		1,416
Roto-Rooter Inc.	28		1,415
United Capital Corp.	64		1,400
Cabot Corp.	42		1,378
RC2 Corp.1	50		1,375
Barnes Group Inc.	49		1,367
Aaon Inc.1	69		1,366
Paxson Communications Corp.1	350		1,365
Mothers Work Inc.1	51		1,359
MTS Systems Corp.	49		1,356
New England Business Service Inc.	40		1,354
Emerson Radio Corp.1	353		1,348
Liquidmetal Technologies1	418		1,333
Elizabeth Arden Inc.1	63		1,331
Oneida Financial Corp.	94		1,316
Brookfield Homes Corp.	37		1,298
Vitria Technology Inc.1	220		1,294
Thomas & Betts Corp.	59		1,287
Rofin-Sinar Technologies Inc.1	43		1,284

SCHEDULES OF INVESTMENTS 67

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 GROWTH INDEX FUND

March 31, 2004

Security	Shares	Value
LodgeNet Entertainment Corp.1	67	$	1,273
Ulticom Inc.1	124		1,272
Financial Federal Corp.1	38		1,270
Columbia Bancorp	41		1,263
WESCO International Inc.1	84		1,252
Connecticut Water Service Inc.	44		1,245
Washington Trust Bancorp Inc.	47		1,241
Artesyn Technologies Inc.1	130		1,238
Green Mountain Coffee Roasters Inc.1	61		1,230
Dover Downs Gaming & Entertainment Inc.	114		1,221
Duratek Inc.1	76		1,209
ESS Technology Inc.1	82		1,202
Gemstar-TV Guide International Inc.1	179		1,201
HEICO Corp.	76		1,192
Gartner Inc. Class A1	102		1,188
E.piphany Inc.1	164		1,184
EDO Corp.	49		1,180
Firstbank Corp.	44		1,170
Action Performance Companies Inc.	76		1,161
Greater Community Bancorp	72		1,158
Lincoln Electric Holding Inc.	41		1,154
Lydall Inc.1	113		1,153
RPC Inc.	103		1,147
Hungarian Telephone and Cable Corp.1	126		1,145
EMCOR Group Inc.1	31		1,138
SkyWest Inc.	59		1,135
Seacoast Banking Corp. of Florida	54		1,118
Men’s Wearhouse Inc. (The)1	42		1,116
Maui Land & Pineapple Co. Inc.1	32		1,109
Herley Industries Inc.1	58		1,095
UnitedGlobalCom Inc. Class A1	129		1,095
National Beverage Corp.	114		1,085
Briggs & Stratton Corp.	16		1,080
Sonic Automotive Inc.	43		1,077
ActivCard Corp.1	166		1,074
Newport Corp.1	64		1,070
IBERIABANK Corp.	18		1,059
Northwest Bancorp Inc.	41		1,048
Kirby Corp.1	31		1,047
Arctic Cat Inc.	41		1,045
Matria Healthcare Inc.1	41		1,038
Bryn Mawr Bank Corp.	45		1,030
NYFIX Inc.1	199		1,027
Casella Waste Systems Inc. Class A1	70		1,018
First Sentinel Bancorp Inc.	48		1,015
Boston Beer Co. Inc. Class A1	55		1,013
Sensient Technologies Corp.	54		1,008
Foothill Independent Bancorp	45		990
Vastera Inc.1	252		978
Hypercom Corp.1	123		977
Interchange Financial Services Corp.	40		972
First Financial Bancorp	52		962
NetScout Systems Inc.1	124		954
Pegasystems Inc.1	116		954
MedQuist Inc.1	59		929
SBS Technologies Inc.1	60		928
TeleTech Holdings Inc.1	148		926
SonicWALL Inc.1	103		919
Bel Fuse Inc. Class B	28		917
JDA Software Group Inc.1	63		917
RehabCare Group Inc.1	46		914
Fleetwood Enterprises Inc.1	74		909
NBT Bancorp Inc.	40		900
Woodhead Industries Inc.	60		900
Acme Communications Inc.1	113		897
Maxygen Inc.1	94		892
Province Healthcare Co.1	56		890
4Kids Entertainment Inc.1	39		872
Schweitzer-Mauduit International Inc.	27		872
Credit Acceptance Corp.1	45		855
Register.com1	144		852
Value Line Inc.	16		844
First Albany Companies Inc.	60		830
Insurance Auto Auctions Inc.1	57		828
Cerus Corp.1	247		823
Shoe Carnival Inc.1	53		821
Centennial Communications Corp.1	120		811
OceanFirst Financial Corp.	32		798
Sirna Therapeutics Inc.1	194		786
Sykes Enterprises Inc.1	131		779
ICT Group Inc.1	58		777

68 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 GROWTH INDEX FUND

March 31, 2004

Security	Shares	Value
Atlantic Coast Airlines Holdings Inc.1	104	$	756
Ennis Business Forms Inc.	45		753
United Security Bancshares	30		741
EMS Technologies Inc.1	37		714
Semitool Inc.1	56		713
Blount International Inc.1	71		710
American Realty Investors Inc.1	71		682
Standard Register Co. (The)	42		673
Intertan Inc.1	48		671
Skechers U.S.A. Inc. Class A1	50		656
Specialty Laboratories Inc.1	60		648
Gray Television Inc.	44		643
Insituform Technologies Inc. Class A1	41		641
LSI Industries Inc.	51		620
Optical Communication Products Inc.1	188		619
Nash Finch Co.	26		616
Pegasus Communications Corp.1	16		613
NN Inc.	52		607
Trans World Entertainment Corp.1	63		597
Meritage Corp.1	8		594
Alpharma Inc. Class A	30		588
Dynacq Healthcare Inc.1	111		586
Alfa Corp.	43		585
Churchill Downs Inc.	15		582
Schawk Inc.	43		575
InterCept Inc.1	47		573
Biopure Corp.1	360		569
Technitrol Inc.1	29		545
American Management Systems Inc.1	28		538
Standard Motor Products Inc.	33		517
Tweeter Home Entertainment Group Inc.1	54		510
Advanced Marketing Services Inc.	51		505
IHOP Corp.	14		482
Galyan’s Trading Co.1	45		453
NS Group Inc.1	33		429
Chronimed Inc.1	55		427
Northern States Financial Corp.	16		426
Mission West Properties Inc.	32		424
Sipex Corp.1	67		422
Modine Manufacturing Co.	16		417
RAIT Investment Trust	14		414
Whitehall Jewellers Inc.1	45		411
United Auto Group Inc.	15		410
Global Power Equipment Group Inc.1	48		404
Wayne Bancorp Inc.	17		398
PAB Bankshares Inc.	31		394
Atari Inc.1	115		392
Ultimate Electronics Inc.1	60		392
Nuance Communications Inc.1	57		373
Gorman-Rupp Co. (The)	14		363
Union Bankshares Corp.	11		355
Genesco Inc.1	15		348
Healthcare Services Group Inc.	21		345
Genlyte Group Inc. (The)1	6		336
Modtech Holdings Inc.1	44		326
Independence Holding Co.	10		308
Royal Bancshares of Pennsylvania Class A	12		306
D&K Healthcare Resources Inc.	29		297
Immunogen Inc.1	43		289
SimpleTech Inc.1	55		261
Technical Olympic USA Inc.1	8		256
First of Long Island Corp.	5		251
PC Connection Inc.1	30		237
BancTrust Financial Group Inc.	13		227
Exchange National Bancshares Inc.	7		222
World Wrestling Entertainment Inc.	15		217
RCN Corp.1	713		207
Sports Resorts International Inc.1	53		207
PRG-Schultz International Inc.1	46		202
Stein Mart Inc.1	14		193
Hooker Furniture Corp.	8		186
McLeodUSA Inc. Class A1	125		186
Crawford & Co. Class B	34		173
City Bank	5		172
Horizon Offshore Inc.1	54		164
Oak Hill Financial Inc.	5		163
Hanmi Financial Corp.	6		160
Steven Madden Ltd.1	8		160
Stanley Furniture Co. Inc.	4		155
Rex Stores Corp.1	9		142
Central Coast Bancorp1	7		129

SCHEDULES OF INVESTMENTS 69

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 GROWTH INDEX FUND

March 31, 2004

Security	Shares or Principal		Value
Deb Shops Inc.		5	$	129
Boyds Collection Ltd. (The)1		49		123
Sypris Solutions Inc.		7		119
Orleans Homebuilders Inc.1		4		96
National Processing Inc.1		5		95
American National Bankshares Inc.		2		49
Raytech Corp.1		14		40
Wilsons The Leather Experts Inc.1		8		22
WilTel Communications Group Inc.2		308		—
TOTAL COMMON STOCKS (Cost: $109,723,042)				114,325,117
SHORT – TERM INVESTMENTS – 10.44%
MONEY MARKET FUNDS – 4.03%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares3,4		3,222,906		3,222,906
Barclays Global Investors Funds Prime Money Market Fund, Institutional Shares3,4		1,085,893		1,085,893
BlackRock Temp Cash Money Market Fund3		50,828		50,828
Short-Term Investment Co. - Liquid Assets Money Market Portfolio3		253,118		253,118
				4,612,745
FLOATING RATE NOTES – 2.10%
Beta Finance Inc.
1.05%, 05/20/043,5	$	49,359		49,358
1.05%, 09/15/043,5		98,718		98,713
1.06%, 10/12/043,5		49,359		49,356
1.14%, 08/23/043,5		49,359		49,375
CC USA Inc.
1.05%, 04/19/043,5		43,436		43,436
1.06%, 05/24/043,5		98,718		98,716
1.09%, 07/15/043,5		49,359		49,364
1.51%, 02/15/053,5		64,166		64,256
Dorada Finance Inc.
1.04%, 07/01/043		34,551		34,460
1.05%, 05/20/043,5		98,718		98,716
1.24%, 08/09/043		24,679		24,678
Security	Principal		Value
1.48%, 01/18/053,5	$	74,038	$	74,035
Five Finance Inc.
1.06%, 04/15/043,5		49,359		49,359
HBOS Treasury Services PLC
1.10%, 04/22/053		98,718		98,718
Holmes Financing PLC
1.05%, 04/15/043		9,872		9,872
K2 USA LLC
1.05%, 08/16/043,5		24,679		24,678
1.05%, 09/27/043,5		106,615		106,607
1.06%, 04/13/043		49,359		49,359
1.06%, 05/17/043		49,359		49,358
1.46%, 01/12/053,5		49,359		49,355
Links Finance LLC
1.05%, 06/28/043		49,359		49,356
1.06%, 05/04/043		49,359		49,359
1.06%, 07/20/043		39,487		39,485
Nationwide Building Society
1.09%, 07/23/043,5		74,038		74,038
1.11%, 12/28/043,5		98,718		98,718
Northern Rock PLC
1.11%, 01/13/053,5		93,782		93,782
Permanent Financing PLC
1.04%, 03/10/053		98,718		98,718
1.05%, 12/10/043		49,359		49,359
Sigma Finance Inc.
1.05%, 07/01/043		49,359		49,356
1.06%, 07/20/043		49,359		49,356
1.09%, 10/07/043		98,718		98,707
1.24%, 08/06/043		24,679		24,679
Tango Finance Corp.
1.05%, 01/18/053,5		43,436		43,432
1.06%, 07/15/043,5		29,615		29,612
1.07%, 02/25/053,5		55,282		55,272
1.10%, 07/06/043,5		29,615		29,614
WhistleJacket Capital LLC
1.05%, 09/15/043,5		49,359		49,354
1.32%, 02/04/053,5		24,679		24,675
White Pine Finance LLC
1.04%, 08/26/043,5		49,359		49,356
1.05%, 11/15/043,5		59,231		59,231

70 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 GROWTH INDEX FUND

March 31, 2004

Security	Principal		Value
1.06%, 04/20/043,5	$	49,359	$	49,359
1.06%, 07/06/043,5		59,231		59,229
				2,395,816
COMMERCIAL PAPER – 1.93%
Alpine Securitization Corp.
1.03%, 04/14/043		46,397		46,380
1.03%, 04/20/043		49,359		49,332
1.03%, 04/23/043		58,243		58,207
1.03%, 04/26/043		49,359		49,323
Amsterdam Funding Corp.
1.03%, 05/05/043		39,981		39,942
Barton Capital Corp.
1.03%, 04/02/043		51,441		51,439
Blue Ridge Asset Funding Corp.
1.02%, 04/23/043		29,615		29,597
1.03%, 05/21/043		49,359		49,288
Corporate Asset Funding
1.05%, 05/21/043		51,333		51,259
Corporate Receivables Corp.
1.03%, 04/07/043		49,359		49,350
1.04%, 06/03/043		98,718		98,538
Delaware Funding Corp.
1.03%, 04/02/043		49,359		49,357
1.03%, 05/05/043		74,120		74,048
1.03%, 05/21/043		24,679		24,644
Edison Asset Securitization
1.07%, 09/21/043		49,359		49,105
Eureka Securitization Inc.
1.03%, 05/25/043		19,744		19,713
1.04%, 04/14/043		59,231		59,208
Falcon Asset Securitization
1.03%, 04/15/043		59,322		59,299
1.03%, 04/22/043		58,243		58,208
1.03%, 04/30/043		49,359		49,318
Galaxy Funding Inc.
1.05%, 05/17/043		49,359		49,293
Gemini Securitization Corp.
1.03%, 04/20/043		29,635		29,619
1.03%, 04/23/043		57,046		57,010
1.03%, 04/30/043		34,594		34,565
1.03%, 05/24/043		24,679		24,642
1.04%, 04/19/043		24,679		24,667
GIRO Funding US Corp.
1.05%, 05/19/043		24,679		24,645
Jupiter Securitization Corp.
1.03%, 04/16/043		98,718		98,675
1.03%, 04/19/043		133,269		133,200
1.03%, 04/28/043		59,231		59,185
1.03%, 04/30/043		84,083		84,013
Liberty Street Funding Corp.
1.04%, 04/08/043		34,587		34,580
1.05%, 04/05/043		39,981		39,976
Polonius Inc.
1.04%, 05/21/043		57,108		57,026
Preferred Receivables Funding Corp.
1.03%, 04/19/043		103,653		103,600
1.04%, 04/23/043		113,525		113,453
1.04%, 05/20/043		24,679		24,644
Receivables Capital Corp.
1.04%, 04/14/043		43,436		43,419
Scaldis Capital LLC
1.05%, 06/30/043		35,341		35,248
Thames Asset Global Securitization No. 1 Inc.
1.03%, 04/19/043		49,359		49,333
Thunder Bay Funding Inc.
1.03%, 04/19/043		31,397		31,381
1.04%, 04/29/043		44,462		44,426
				2,212,155
TIME DEPOSITS – 1.65%
Abbey National Treasury Services PLC
1.08%, 04/01/043		345,511		345,511
1.33%, 02/10/053		49,359		49,352
1.39%, 02/02/053		49,359		49,353
1.40%, 10/25/043		98,718		98,709
Bank of New York
1.39%, 11/01/043		98,718		98,712
Bank of Nova Scotia
1.24%, 10/07/043		74,038		74,034
1.42%, 10/29/043		74,038		74,041

SCHEDULES OF INVESTMENTS 71

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 GROWTH INDEX FUND

March 31, 2004

Security	Principal		Value
Canadian Imperial Bank of Commerce
1.24%, 10/07/043	$	74,038	$	74,032
1.38%, 11/22/043		24,679		24,681
1.40%, 10/29/043		98,718		98,716
National City Bank (Cleveland, Ohio)
1.02%, 04/01/043		148,076		148,076
Toronto-Dominion Bank
1.04%, 06/22/043		24,679		24,679
1.22%, 03/23/053		172,756		172,727
1.34%, 02/10/053		39,487		39,482
1.41%, 11/01/043		74,038		74,034
UBS Finance (Delaware)
1.06%, 04/01/043		197,435		197,435
1.10%, 09/08/043		98,718		98,235
1.11%, 12/17/043		148,076		146,889
				1,888,698
REPURCHASE AGREEMENTS – 0.52%
Bank of America, NA
1.06%, 04/01/043		197,435		197,435
Goldman, Sachs & Co.
1.08%, 04/01/043		394,870		394,870
				592,305
U.S. GOVERNMENT AGENCY NOTES – 0.21%
Federal Home Loan Mortgage Corporation
1.15%, 05/12/043		74,038		73,942
1.28%, 08/19/043		39,487		39,290
Federal National Mortgage Association
1.28%, 08/20/043		128,333		127,690
				240,922
TOTAL SHORT-TERM INVESTMENTS (Cost: $11,942,641)				11,942,641
TOTAL INVESTMENTS IN SECURITIES – 110.37% (Cost $121,665,683)			$	126,267,758
Other Assets, Less Liabilities – (10.37%)				(11,864,046	)
NET ASSETS – 100.00%			$	114,403,712

¹ Non-income earning securities.

² Security valued at fair value in accordance with procedures approved by the Board of Trustees. See Note 1.

³ All or a portion of this security represents investments of securities lending collateral.

⁴ Issuer is an affiliate of the Fund’s investment advisor. See Note 2.

⁵ Security exempt from registration under Rule 144A of the Securities Act of 1933.

These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

See notes to financial statements.

72 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® RUSSELL 3000 VALUE INDEX FUND

March 31, 2004

Security	Shares	Value
COMMON STOCKS – 99.92%
Exxon Mobil Corp.	251,940	$	10,478,185
Citigroup Inc.	194,177		10,038,951
Bank of America Corp.	56,458		4,571,969
Verizon Communications Inc.	103,698		3,789,125
ChevronTexaco Corp.	40,280		3,535,778
Wells Fargo & Company	59,720		3,384,332
JP Morgan Chase & Co.	76,579		3,212,489
Altria Group Inc.	58,398		3,179,771
SBC Communications Inc.	125,252		3,073,684
American International Group Inc.	42,402		3,025,383
International Business Machines Corp.	30,580		2,808,467
Time Warner Inc.1	163,083		2,749,579
Hewlett-Packard Co.	115,060		2,627,970
Bank One Corp.	43,057		2,347,468
Wachovia Corp.	48,266		2,268,502
Morgan Stanley	36,556		2,094,659
Merck & Co. Inc.	47,154		2,083,735
Merrill Lynch & Co. Inc.	34,933		2,080,609
U.S. Bancorp	72,345		2,000,339
BellSouth Corp.	69,593		1,927,030
Procter & Gamble Co.	17,612		1,847,147
FleetBoston Financial Corp.	39,794		1,786,751
ConocoPhillips	25,574		1,785,321
Walt Disney Co. (The)	57,494		1,436,775
Du Pont (E.I.) de Nemours and Co.	33,464		1,412,850
Washington Mutual Inc.	32,834		1,402,340
Viacom Inc. Class B	35,293		1,383,839
McDonald’s Corp.	47,922		1,369,132
Comcast Corp. Class A1	45,106		1,296,346
Dow Chemical Co. (The)	30,996		1,248,519
Allstate Corp. (The)	26,507		1,205,008
Freddie Mac	20,219		1,194,134
Goldman Sachs Group Inc. (The)	10,714		1,118,006
Alcoa Inc.	31,822		1,103,905
Honeywell International Inc.	31,262		1,058,219
Caterpillar Inc.	12,966		1,025,222
United Technologies Corp.	11,640		1,004,532
Prudential Financial Inc.	20,764		929,812
Motorola Inc.	51,503		906,453
Ford Motor Company	66,191		898,212
Schering-Plough Corp.	55,280		896,642
Gannett Co. Inc.	10,109		891,007
Bristol-Myers Squibb Co.	36,399		881,948
Kimberly-Clark Corp.	13,322		840,618
Exelon Corp.	12,200		840,214
Southern Company	27,156		828,258
General Motors Corp.	17,401		819,587
Emerson Electric Co.	13,272		795,258
Dominion Resources Inc.	12,068		775,972
Bank of New York Co. Inc. (The)	24,472		770,868
Duke Energy Corp.	33,898		766,095
Lehman Brothers Holdings Inc.	9,201		762,487
International Paper Co.	18,014		761,272
BB&T Corp.	20,982		740,665
National City Corp.	20,775		739,174
Liberty Media Corp. Class A1	66,656		729,883
Cendant Corp.	29,531		720,261
Hartford Financial Services Group Inc.	10,619		676,430
Occidental Petroleum Corp.	14,258		656,581
SunTrust Banks Inc.	9,278		646,769
Northrop Grumman Corp.	6,526		642,289
Lucent Technologies Inc.1	155,514		639,163
AT&T Wireless Services Inc.1	46,768		636,512
Deere & Co.	8,998		623,651
Sprint Corp. (FON Group)	33,789		622,731
PNC Financial Services Group	10,891		603,579
Coca-Cola Co. (The)	11,840		595,552
Countrywide Financial Corp.	6,203		594,868
General Dynamics Corp.	6,639		593,062
Alltel Corp.	11,788		588,103
State Street Corp.	11,168		582,188
AT&T Corp.	29,550		578,293
American Express Co.	11,146		577,920
Gillette Co. (The)	14,697		574,653
Union Pacific Corp.	9,549		571,221
Avon Products Inc.	7,496		568,722
Travelers Property Casualty Corp. Class B	31,963		552,001
Weyerhaeuser Co.	8,300		543,650

SCHEDULES OF INVESTMENTS 73

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 VALUE INDEX FUND

March 31, 2004

Security	Shares	Value
ConAgra Foods Inc.	20,175	$	543,514
Agilent Technologies Inc.1	16,779		530,720
Golden West Financial Corp.	4,713		527,620
Apache Corp.	12,139		524,041
FedEx Corp.	6,965		523,489
CVS Corp.	14,801		522,475
Devon Energy Corp.	8,742		508,347
Sun Microsystems Inc.1	121,293		504,579
Entergy Corp.	8,480		504,560
American Electric Power Co. Inc.	14,963		492,582
KeyCorp	16,023		485,337
Chubb Corp.	6,959		483,929
Raytheon Co.	15,417		483,169
Burlington Resources Inc.	7,538		479,643
Hancock (John) Financial Services Inc.	10,962		478,930
Lockheed Martin Corp.	10,448		476,847
Kroger Co.1	28,334		471,478
FPL Group Inc.	6,892		460,730
MetLife Inc.	12,755		455,098
PG&E Corp.1	15,478		448,398
Clear Channel Communications Inc.	10,549		446,750
Burlington Northern Santa Fe Corp.	14,139		445,378
FirstEnergy Corp.	11,332		442,855
Equity Office Properties Trust	15,264		440,977
Air Products & Chemicals Inc.	8,528		427,423
Fortune Brands Inc.	5,513		422,461
Johnson Controls Inc.	7,075		418,486
Public Service Enterprise Group Inc.	8,537		401,068
PepsiCo Inc.	7,410		399,029
Costco Wholesale Corp.1	10,557		396,521
Marathon Oil Corp.	11,716		394,478
Principal Financial Group Inc.	10,889		387,975
Federated Department Stores Inc.	7,120		384,836
SouthTrust Corp.	11,587		384,225
Progress Energy Inc.	8,125		382,525
Sara Lee Corp.	17,356		379,402
May Department Stores Co. (The)	10,901		376,957
PPG Industries Inc.	6,427		374,694
Apple Computer Inc.1	13,844		374,480
Consolidated Edison Inc.	8,454		372,821
Unocal Corp.	9,750		363,480
Monsanto Co.	9,870		361,933
Comerica Inc.	6,655		361,500
Sears, Roebuck and Co.	8,268		355,193
Masco Corp.	11,648		354,565
Penney (J.C.) Co. Inc. (Holding Co.)	10,170		353,713
PACCAR Inc.	6,185		347,844
Franklin Resources Inc.	6,247		347,833
TXU Corp.	12,081		346,241
Tribune Co.	6,856		345,817
MBIA Inc.	5,457		342,154
Safeway Inc.1	16,543		340,455
Xerox Corp.1	23,329		339,904
Limited Brands Inc.	16,700		334,000
Kraft Foods Inc.	10,426		333,736
Archer-Daniels-Midland Co.	19,703		332,390
Electronic Data Systems Corp.	17,055		330,014
Bear Stearns Companies Inc. (The)	3,761		329,764
Norfolk Southern Corp.	14,738		325,562
Marshall & Ilsley Corp.	8,510		321,763
Praxair Inc.	8,584		318,638
St. Paul Companies Inc.	7,961		318,520
Eaton Corp.	5,667		318,429
Georgia-Pacific Corp.	9,450		318,370
Lincoln National Corp.	6,714		317,706
General Mills Inc.	6,792		317,051
Northern Trust Corp.	6,786		316,160
Ameren Corp.	6,816		314,149
AmSouth Bancorp	13,329		313,365
CIGNA Corp.	5,296		312,570
Equity Residential	10,308		307,694
Regions Financial Corp.	8,421		307,535
Simon Property Group Inc.	5,258		307,278
Waste Management Inc.	10,022		302,464
PPL Corp.	6,620		301,872
Charter One Financial Inc.	8,534		301,762
Aetna Inc.	3,319		297,781
Jefferson-Pilot Corp.	5,378		295,844
Valero Energy Corp.	4,886		292,965
Loews Corp.	4,938		291,638
Mellon Financial Corp.	9,278		290,309

74 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 VALUE INDEX FUND

March 31, 2004

Security	Shares	Value
Heinz (H.J.) Co.	7,753	$	289,109
Anthem Inc.1	3,177		287,963
General Growth Properties Inc.	8,168		287,105
MBNA Corp.	10,379		286,772
AFLAC Inc.	7,123		285,917
Albertson’s Inc.	12,887		285,447
CIT Group Inc.	7,477		284,500
Eastman Kodak Co.	10,861		284,232
3M Co.	3,376		276,393
Corning Inc.1	24,578		274,782
Anadarko Petroleum Corp.	5,259		272,732
Cinergy Corp.	6,663		272,450
Computer Sciences Corp.1	6,723		271,139
AON Corp.	9,677		270,085
Illinois Tool Works Inc.	3,407		269,937
Xcel Energy Inc.	15,075		268,486
DTE Energy Co.	6,386		262,784
Edison International	10,802		262,381
Avaya Inc.1	16,396		260,368
Newmont Mining Corp.	5,496		256,278
Parker Hannifin Corp.	4,461		252,047
Constellation Energy Group Inc.	6,255		249,887
CSX Corp.	8,131		246,288
Sovereign Bancorp Inc.	11,292		241,875
Dover Corp.	6,222		241,227
Rohm & Haas Co.	5,963		237,566
Sempra Energy	7,470		237,546
Torchmark Corp.	4,411		237,268
Textron Inc.	4,348		231,096
Donnelley (R.R.) & Sons Co.	7,599		229,870
UST Inc.	6,322		228,224
M&T Bank Corp.	2,540		228,219
KeySpan Corp.	5,957		227,677
Interpublic Group of Companies Inc.1	14,643		225,209
Plum Creek Timber Co. Inc.	6,907		224,339
Cincinnati Financial Corp.	5,156		224,028
ProLogis	6,213		222,860
Wyeth	5,923		222,409
National Commerce Financial Corp.	7,720		220,869
Office Depot Inc.1	11,653		219,309
Starwood Hotels & Resorts Worldwide Inc.	5,341		216,311
Archstone-Smith Trust	7,309		215,689
First Tennessee National Corp.	4,519		215,556
Union Planters Corp.	7,211		215,248
Capital One Financial Corp.	2,851		215,051
Genuine Parts Co.	6,564		214,774
Rockwell Automation Inc.	6,193		214,711
Ambac Financial Group Inc.	2,906		214,405
MeadWestvaco Corp.	7,559		213,844
D.R. Horton Inc.	6,026		213,501
SAFECO Corp.	4,926		212,655
NiSource Inc.	9,907		210,524
Banknorth Group Inc.	6,157		209,584
DIRECTV Group Inc. (The)1	13,624		209,537
Fidelity National Financial Inc.	5,227		206,989
Lennar Corp. Class A	3,826		206,719
Pulte Homes Inc.	3,675		204,330
Compass Bancshares Inc.	4,802		199,139
Kerr-McGee Corp.	3,816		196,524
Knight Ridder Inc.	2,679		196,237
Zions Bancorporation	3,418		195,510
Medco Health Solutions Inc.1	5,734		194,956
Vornado Realty Trust	3,221		194,806
Dean Foods Co.1	5,786		193,252
R.J. Reynolds Tobacco Holdings Inc.	3,185		192,693
Cox Communications Inc. Class A1	6,095		192,602
Micron Technology Inc.1	11,500		192,165
Huntington Bancshares Inc.	8,659		192,143
GreenPoint Financial Corp.	4,295		187,734
Williams Companies Inc.	19,586		187,438
Kimco Realty Corp.	3,655		186,332
Public Storage Inc.	3,764		183,156
Kellogg Co.	4,659		182,819
Murphy Oil Corp.	2,888		181,857
Nucor Corp.	2,953		181,550
Rouse Co. (The)	3,385		181,436
Sherwin-Williams Co. (The)	4,700		180,621
Sunoco Inc.	2,894		180,528
Duke Realty Corp.	5,105		177,246
Amerada Hess Corp.	2,712		177,039

SCHEDULES OF INVESTMENTS 75

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 VALUE INDEX FUND

March 31, 2004

Security	Shares	Value
MGIC Investment Corp.	2,740	$	175,990
North Fork Bancorp Inc.	4,149		175,586
Scientific-Atlanta Inc.	5,340		172,696
Qwest Communications International Inc.1	39,863		171,810
Delphi Corp.	17,234		171,651
iStar Financial Inc.	4,032		170,554
El Paso Corp.	23,850		169,574
New York Community Bancorp Inc.	4,931		169,035
Old Republic International Corp.	6,839		167,966
NTL Inc.1	2,783		165,449
Centex Corp.	3,059		165,370
Jones Apparel Group Inc.	4,570		165,205
Smurfit-Stone Container Corp.	9,262		162,919
Tenet Healthcare Corp.1	14,460		161,374
UNUMProvident Corp.	10,968		160,462
Vulcan Materials Co.	3,379		160,300
United States Steel Corp.	4,248		158,323
HCA Inc.	3,872		157,281
Republic Services Inc.	5,737		155,301
Boston Properties Inc.	2,847		154,621
SUPERVALU Inc.	5,046		154,105
Popular Inc.	3,553		153,134
Watson Pharmaceuticals Inc.1	3,536		151,305
Coca-Cola Enterprises Inc.	6,192		149,661
Wendy’s International Inc.	3,665		149,129
Liz Claiborne Inc.	4,056		148,815
CenturyTel Inc.	5,403		148,528
Janus Capital Group Inc.	9,036		148,010
SCANA Corp.	4,182		147,834
Host Marriott Corp.1	11,533		147,392
Lear Corp.	2,361		146,288
Nordstrom Inc.	3,651		145,675
Phelps Dodge Corp.1	1,782		145,518
VF Corp.	3,090		144,303
American Power Conversion Corp.	6,245		143,697
NCR Corp.1	3,254		143,371
Tyson Foods Inc. Class A	7,941		143,335
Liberty Property Trust	3,180		143,100
Energy East Corp.	5,566		141,154
Allied Capital Corp.	4,649		140,818
XM Satellite Radio Holdings Inc. Class A1	4,993		139,804
Sirius Satellite Radio Inc.1	40,985		139,349
Wisconsin Energy Corp.	4,333		139,306
Hibernia Corp. Class A	5,917		138,990
Citizens Communications Co.1	10,720		138,717
Grainger (W.W.) Inc.	2,882		138,336
Thermo Electron Corp.1	4,888		138,233
Radian Group Inc.	3,238		137,939
Marriott International Inc. Class A	3,240		137,862
Foot Locker Inc.	5,332		137,566
Caesars Entertainment Inc.1	10,541		137,455
Southwest Airlines Co.	9,641		136,999
Advanced Micro Devices Inc.1	8,403		136,381
PeopleSoft Inc.1	7,357		136,031
Health Care Property Investors Inc.	4,801		135,868
ServiceMaster Co. (The)	11,295		135,653
Whirlpool Corp.	1,964		135,261
McKesson Corp.	4,453		133,991
PMI Group Inc. (The)	3,580		133,749
Toys R Us Inc.1	7,894		132,619
Diebold Inc.	2,723		131,031
AvalonBay Communities Inc.	2,441		130,789
Engelhard Corp.	4,360		130,320
Campbell Soup Co.	4,760		129,805
InterActiveCorp1	4,068		128,508
Clorox Co.	2,627		128,487
Vishay Intertechnology Inc.1	6,015		128,360
Brunswick Corp.	3,143		128,329
Pinnacle West Capital Corp.	3,194		125,684
Autodesk Inc.	3,960		125,215
Hershey Foods Corp.	1,502		124,441
Pioneer Natural Resources Co.	3,846		124,226
Sabre Holdings Corp.	5,004		124,149
Pitney Bowes Inc.	2,911		124,038
Eastman Chemical Co.	2,906		124,028
Goodrich (B.F.) Co.	4,358		122,329
Colgate-Palmolive Co.	2,209		121,716
Washington Post Company (The) Class B	137		121,164
Pepco Holdings Inc.	5,925		121,107

76 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 VALUE INDEX FUND

March 31, 2004

Security	Shares	Value
KB Home	1,494	$	120,715
CenterPoint Energy Inc.	10,431		119,226
Ashland Inc.	2,562		119,107
Boeing Co. (The)	2,885		118,487
Sanmina-SCI Corp.1	10,675		117,532
Associated Bancorp	2,618		117,260
Developers Diversified Realty Corp.	2,886		116,594
Mercantile Bankshares Corp.	2,708		116,363
Questar Corp.	3,186		116,098
Macerich Co. (The)	2,150		115,885
Humana Inc.1	6,079		115,623
PacifiCare Health Systems Inc.1	2,923		115,605
ALLETE Inc.	3,264		114,534
Hasbro Inc.	5,259		114,383
Fluor Corp.	2,905		112,394
Avnet Inc.1	4,571		111,944
AutoNation Inc.1	6,560		111,848
Commerce Bancshares Inc.	2,329		111,117
Temple-Inland Inc.	1,749		110,782
Astoria Financial Corp.	2,907		110,553
SPX Corp.	2,430		110,516
Bausch & Lomb Inc.	1,841		110,405
King Pharmaceuticals Inc.1	6,553		110,353
Cadence Design Systems Inc.1	7,484		110,314
Apartment Investment & Management Co. Class A	3,537		109,965
Leggett & Platt Inc.	4,632		109,825
Dana Corp.	5,505		109,329
Hospitality Properties Trust	2,343		108,715
AmerisourceBergen Corp.	1,985		108,540
AMB Property Corp.	2,887		107,310
Pogo Producing Co.	2,330		106,877
Baker Hughes Inc.	2,919		106,485
Hilton Hotels Corp.	6,539		106,259
Alliant Energy Corp.	4,076		106,221
Rockwell Collins Inc.	3,357		106,115
Energizer Holdings Inc.1	2,256		105,333
Mohawk Industries Inc.1	1,278		105,243
TECO Energy Inc.	7,184		105,102
Equitable Resources Inc.	2,364		105,009
Brown-Forman Corp. Class B	2,196		104,661
Louisiana-Pacific Corp.	4,009		103,432
NSTAR	2,039		103,418
UnionBanCal Corp.	1,970		103,208
Computer Associates International Inc.	3,832		102,928
Catellus Development Corp.	3,945		102,609
3Com Corp.1	14,500		102,370
Precision Castparts Corp.	2,318		102,062
ENSCO International Inc.	3,598		101,356
MDU Resources Group Inc.	4,293		100,843
Fox Entertainment Group Inc. Class A1	3,716		100,704
Compuware Corp.1	13,466		100,322
New Plan Excel Realty Trust	3,657		100,019
Invitrogen Corp.1	1,395		100,008
Pentair Inc.	1,677		98,943
Smucker (J.M.) Co. (The)	1,872		98,804
Stanley Works (The)	2,311		98,633
Manor Care Inc.	2,789		98,424
Becton, Dickinson & Co.	2,015		97,687
Mack-Cali Realty Corp.	2,165		97,230
Apogent Technologies Inc.1	3,144		96,458
Bank of Hawaii Corp.	2,075		96,135
Millennium Pharmaceuticals Inc.1	5,632		95,181
Alberto-Culver Co.	2,169		95,154
Wilmington Trust Corp.	2,546		95,144
Berkley (W.R.) Corp.	2,366		94,356
United Dominion Realty Trust Inc.	4,765		93,489
City National Corp.	1,558		93,324
Bemis Co.	3,559		92,534
Thornburg Mortgage Inc.	2,957		91,963
Telephone & Data Systems Inc.	1,284		90,997
Weingarten Realty Investors	2,624		90,773
Leucadia National Corp.	1,691		90,096
Solectron Corp.1	16,190		89,531
XTO Energy Inc.	3,544		89,444
DPL Inc.	4,770		89,437
L-3 Communications Holdings Inc.1	1,502		89,339
Northeast Utilities	4,766		88,886
Fulton Financial Corp.	3,985		88,746
Protective Life Corp.	2,361		88,419

SCHEDULES OF INVESTMENTS 77

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 VALUE INDEX FUND

March 31, 2004

Security	Shares	Value
Great Plains Energy Inc.	2,616	$	88,395
Sky Financial Group Inc.	3,403		88,308
E*TRADE Financial Corp.1	6,614		88,297
Valspar Corp. (The)	1,790		88,122
BorgWarner Inc.	1,036		87,884
OGE Energy Corp.	3,311		87,543
Hillenbrand Industries Inc.	1,287		87,374
Ryland Group Inc.	976		86,698
Newell Rubbermaid Inc.	3,723		86,374
Smithfield Foods Inc.1	3,176		86,133
Martin Marietta Materials Inc.	1,865		86,088
Colonial BancGroup Inc. (The)	4,640		85,840
Ryder System Inc.	2,202		85,283
Bowater Inc.	1,953		85,209
Harrah’s Entertainment Inc.	1,550		85,079
Webster Financial Corp.	1,676		84,990
Novell Inc.1	7,459		84,883
Hormel Foods Corp.	2,893		84,852
Service Corp. International1	11,315		84,523
Cullen/Frost Bankers Inc.	1,974		84,408
Sonoco Products Co.	3,471		84,276
ONEOK Inc.	3,733		84,179
Constellation Brands Inc.1	2,621		84,134
New York Times Co. Class A	1,902		84,068
Edwards (A.G.) Inc.	2,145		83,912
Harris Corp.	1,732		83,846
Puget Energy Inc.	3,708		82,948
Tellabs Inc.1	9,611		82,943
American Capital Strategies Ltd.	2,492		82,834
Autoliv Inc.	2,019		82,779
Sigma-Aldrich Corp.	1,491		82,512
Tech Data Corp.1	2,012		82,371
Boise Cascade Corp.	2,375		82,294
Annaly Mortgage Management Inc.	4,195		82,012
Rayonier Inc. REIT	1,875		81,956
Saks Inc.1	4,646		81,770
Arrow Electronics Inc.1	3,203		81,548
Pan Pacific Retail Properties Inc.	1,557		81,120
Level 3 Communications Inc.1	20,173		81,095
Reliant Resources Inc.1	9,866		81,000
Circuit City Stores Inc.	7,130		80,569
Ventas Inc.	2,927		80,434
LSI Logic Corp.1	8,456		78,979
First American Corp.	2,561		77,906
Aqua America Inc.	3,592		77,875
Cummins Inc.	1,331		77,797
Allied Waste Industries Inc.1	5,832		77,624
Siebel Systems Inc.1	6,682		76,910
Toll Brothers Inc.1	1,690		76,777
Nationwide Financial Services Inc.	2,128		76,714
FirstMerit Corp.	2,944		76,691
Valley National Bancorp	2,739		76,610
Lee Enterprises Inc.	1,692		76,445
Hubbell Inc. Class B	1,903		76,367
Deluxe Corp.	1,901		76,230
Providian Financial Corp.1	5,812		76,137
Tektronix Inc.	2,324		76,018
Lyondell Chemical Co.	5,113		75,877
Federal Realty Investment Trust	1,637		75,629
Belo (A.H.) Corp.	2,721		75,535
Washington Federal Inc.	2,952		75,365
McGraw-Hill Companies Inc. (The)	973		74,084
Convergys Corp.1	4,867		73,978
Independence Community Bank Corp.	1,815		73,961
Standard-Pacific Corp.	1,225		73,500
Health Care REIT Inc.	1,804		73,242
RPM International Inc.	4,414		73,008
Snap-On Inc.	2,255		72,927
Unitrin Inc.	1,691		72,544
MGM Mirage1	1,599		72,499
CenterPoint Properties Corp.	877		72,352
Hawaiian Electric Industries Inc.	1,393		72,213
Vectren Corp.	2,905		71,666
Ingram Micro Inc. Class A1	3,951		71,513
HRPT Properties Trust	6,321		71,427
StanCorp Financial Group Inc.	1,094		71,384
Harsco Corp.	1,558		70,889
IKON Office Solutions Inc.	5,521		70,669
Allmerica Financial Corp.1	2,039		70,447
Cabot Corp.	2,143		70,290
Omnicare Inc.	1,579		69,997
Neiman-Marcus Group Inc. Class A	1,294		69,798

78 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 VALUE INDEX FUND

March 31, 2004

Security	Shares	Value
Storage Technology Corp.1	2,487	$	69,213
Healthcare Realty Trust Inc.	1,620		69,174
Arden Realty Inc.	2,136		69,057
AGL Resources Inc.	2,379		69,039
IndyMac Bancorp Inc.	1,899		68,915
Coors (Adolf) Company Class B	973		67,575
Allegheny Energy Inc.1	4,869		66,754
CarrAmerica Realty Corp.	1,958		66,376
WPS Resources Corp.	1,384		66,155
BJ’s Wholesale Club Inc.1	2,593		65,992
BRE Properties Inc. Class A	1,921		65,929
Calpine Corp.1	14,105		65,870
Realty Income Corp.	1,466		65,457
Carlisle Companies Inc.	1,154		65,374
Reebok International Ltd.	1,577		65,209
Teleflex Inc.	1,319		64,934
Crane Co.	1,965		64,845
Shurgard Storage Centers Inc. Class A	1,623		64,758
AnnTaylor Stores Corp.1	1,511		64,671
CNF Inc.	1,918		64,445
Transatlantic Holdings Inc.	736		64,187
BancorpSouth Inc.	2,908		63,627
Fremont General Corp.	2,071		63,373
Intersil Corp. Class A	2,843		63,370
Whitney Holding Corp.	1,518		63,361
Hudson City Bancorp Inc.	1,666		63,041
South Financial Group Inc. (The)	2,127		62,938
Provident Financial Group Inc.	1,563		62,770
T. Rowe Price Group Inc.	1,160		62,443
McCormick & Co. Inc.	1,862		62,414
Lubrizol Corp.	1,977		62,256
Wrigley (William Jr.) Co.	1,047		61,899
Pactiv Corp.1	2,772		61,677
Peoples Energy Corp.	1,381		61,662
UGI Corp.	1,872		61,626
AmeriCredit Corp.1	3,602		61,342
Hughes Supply Inc.	1,163		60,941
Noble Energy Inc.	1,290		60,759
Terex Corp.1	1,638		60,557
National Fuel Gas Co.	2,430		59,778
Reckson Associates Realty Corp.	2,123		59,741
First Industrial Realty Trust Inc.	1,512		59,724
TCF Financial Corp.	1,169		59,701
First Midwest Bancorp Inc.	1,745		59,574
Chelsea Property Group Inc.	939		59,101
AmerUs Group Co.	1,457		58,790
Activision Inc.1	3,697		58,487
Andrew Corp.1	3,313		57,977
Hudson United Bancorp	1,523		57,950
MONY Group Inc. (The)1	1,834		57,661
SL Green Realty Corp.	1,204		57,431
Greater Bay Bancorp	1,955		57,184
Zale Corp.1	928		57,118
Nicor Inc.	1,619		57,037
Camden Property Trust	1,266		56,907
Crown Holdings Inc.1	6,089		56,749
Forest City Enterprises Inc. Class A	1,052		56,650
FMC Corp.1	1,321		56,565
Old National Bancorp	2,499		56,477
International Rectifier Corp.1	1,228		56,476
WGL Holdings Inc.	1,862		56,046
Raymond James Financial Inc.	2,255		56,024
Piedmont Natural Gas Co.	1,324		55,899
Nationwide Health Properties Inc.	2,498		55,630
AGCO Corp.1	2,673		55,358
Westar Energy Inc.	2,629		55,104
Markel Corp.1	191		54,989
Borders Group Inc.	2,316		54,982
Helmerich & Payne Inc.	1,919		54,979
Beazer Homes USA Inc.	518		54,861
Energen Corp.	1,328		54,780
Owens-Illinois Inc.1	3,902		54,706
Crescent Real Estate Equities Co.	3,021		54,287
Duquesne Light Holdings Inc.	2,776		54,132
Impac Mortgage Holdings Inc.	1,989		54,101
Extended Stay America Inc.	2,792		54,081
Furniture Brands International Inc.	1,675		53,935
Briggs & Stratton Corp.	795		53,639
Atmel Corp.1	8,250		53,625
Highwoods Properties Inc.	2,034		53,311
York International Corp.	1,353		53,186

SCHEDULES OF INVESTMENTS 79

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 VALUE INDEX FUND

March 31, 2004

Security	Shares	Value
Citizens Banking Corp.	1,626	$	53,056
Automatic Data Processing Inc.	1,261		52,962
PerkinElmer Inc.	2,556		52,884
Copart Inc.1	2,422		52,630
Comverse Technology Inc.1	2,900		52,606
Trizec Properties Inc.	3,031		51,982
Peabody Energy Corp.	1,115		51,859
Alexander & Baldwin Inc.	1,567		51,836
American Tower Corp. Class A1	4,564		51,801
Trustmark Corp.	1,780		51,798
Corn Products International Inc.	1,294		51,760
International Bancshares Corp.	979		51,721
Cytec Industries Inc.	1,444		51,363
Pep Boys-Manny, Moe & Jack Inc.	1,848		51,282
Polo Ralph Lauren Corp.	1,493		51,180
American Greetings Corp. Class A1	2,247		51,164
Packaging Corporation of America	2,267		51,144
Kennametal Inc.	1,236		51,010
CBL & Associates Properties Inc.	825		50,605
Goodyear Tire & Rubber Co. (The)1	5,922		50,574
Jefferies Group Inc.	1,431		50,557
Ethan Allen Interiors Inc.	1,222		50,420
Imation Corp.	1,339		50,373
Metro-Goldwyn-Mayer Inc.1	2,895		50,373
Cooper Tire & Rubber Co.	2,485		50,073
M.D.C. Holdings Inc.	711		50,026
Fairchild Semiconductor International Inc. Class A1	2,074		49,838
Tom Brown Inc.1	1,317		49,519
Lafarge North America Inc.	1,217		49,471
Callaway Golf Co.	2,606		49,462
Corrections Corp. of America1	1,389		49,448
Mercury General Corp.	990		49,431
Staten Island Bancorp Inc.	1,980		49,262
Mills Corp.	923		49,187
Home Properties Inc.	1,205		49,104
Prentiss Properties Trust	1,326		48,929
National Semiconductor Corp.1	1,101		48,917
CMS Energy Corp.1	5,454		48,813
Triad Hospitals Inc.1	1,583		48,788
AptarGroup Inc.	1,270		48,768
Massey Energy Co.	2,195		48,444
Phoenix Companies Inc.	3,610		48,410
Visteon Corp.	5,048		48,309
ArvinMeritor Inc.	2,433		48,246
Dycom Industries Inc.1	1,806		47,895
HON Industries Inc.	1,287		47,825
Park National Corp.	421		47,699
Halliburton Co.	1,568		47,652
Valassis Communications Inc.1	1,567		47,637
KEMET Corp.1	3,308		47,437
Airgas Inc.	2,222		47,329
HCC Insurance Holdings Inc.	1,449		46,846
Polycom Inc.1	2,204		46,791
Barnes & Noble Inc.1	1,432		46,683
ADC Telecommunications Inc.1	16,061		46,577
McClatchy Co. (The) Class A	655		46,531
Gemstar-TV Guide International Inc.1	6,921		46,440
La Quinta Corp.1	6,153		46,394
PepsiAmericas Inc.	2,266		46,272
Westamerica Bancorp	915		46,171
Atmos Energy Corp.	1,805		46,154
Mandalay Resort Group	804		46,037
BearingPoint Inc.1	4,278		45,860
Commercial Federal Corp.	1,652		45,595
Linens ‘n Things Inc.1	1,285		45,502
Bob Evans Farms Inc.	1,392		45,156
Charter Communications Inc. Class A1	9,574		45,094
Universal Corp.	887		45,077
Yellow Roadway Corp.1	1,336		44,983
Advanced Fibre Communications Inc.1	2,018		44,457
Forest Oil Corp.1	1,754		44,288
Readers Digest Association Inc. (The)	3,138		44,183
Gateway Inc.1	8,333		43,998
Kinder Morgan Inc.	698		43,988
Erie Indemnity Co. Class A	909		43,868
Arbitron Inc.1	1,086		43,722
Dillards Inc. Class A	2,279		43,666
Ceridian Corp.1	2,211		43,579
People’s Bank	935		43,468

80 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 VALUE INDEX FUND

March 31, 2004

Security	Shares	Value
Cimarex Energy Co.1	1,499	$	43,321
IDACORP Inc.	1,447		43,265
Regency Centers Corp.	924		43,179
Downey Financial Corp.	816		43,166
Unisys Corp.1	3,018		43,097
MAF Bancorp Inc.	990		43,025
ICOS Corp.1	1,159		42,941
Media General Inc. Class A	631		42,454
Neurocrine Biosciences Inc.1	715		42,256
PNM Resources Inc.	1,406		42,250
Viad Corp.	1,730		41,814
Chittenden Corp.	1,261		41,613
Commerce Group Inc.	866		41,568
CIENA Corp.1	8,363		41,564
Manpower Inc.	893		41,524
Lancaster Colony Corp.	1,027		41,491
Newfield Exploration Co.1	865		41,459
Dynegy Inc. Class A1	10,430		41,303
Pride International Inc.1	2,391		40,790
Scotts Co. (The) Class A1	635		40,735
Southern Union Co.1	2,148		40,705
United Bancshares Inc.	1,334		40,687
Ohio Casualty Corp.1	2,031		40,600
Banta Corp.	874		40,457
Newcastle Investment Corp.	1,197		40,339
Arch Coal Inc.	1,284		40,305
Navistar International Corp.1	877		40,210
Stone Energy Corp.1	812		40,162
Cypress Semiconductor Corp.1	1,961		40,142
Gables Residential Trust	1,104		40,020
Potlatch Corp.	981		39,976
MPS Group Inc.1	3,593		39,954
Reinsurance Group of America Inc.	969		39,700
Loews Corporation - Carolina Group	1,446		39,548
Abgenix Inc.1	2,969		39,458
Florida Rock Industries Inc.	935		39,410
Del Monte Foods Co.1	3,494		39,307
American Financial Group Inc.	1,316		39,256
Valeant Pharmaceuticals International	1,637		39,075
National-Oilwell Inc.1	1,380		39,026
Maxtor Corp.1	4,771		38,884
Kellwood Co.	989		38,818
FNB Corp. (Florida)	1,756		38,808
Piper Jaffray Companies Inc.1	714		38,663
Unova Inc.1	1,785		38,574
Black Hills Corp.	1,209		38,531
Applied Micro Circuits Corp.1	6,686		38,444
American Axle & Manufacturing Holdings Inc.1	1,038		38,250
WellPoint Health Networks Inc.1	336		38,210
Tesoro Petroleum Corp.1	2,028		38,106
First Niagara Financial Group Inc.	2,784		38,002
Henry Schein Inc.1	531		37,924
Silicon Valley Bancshares1	1,169		37,922
Blyth Inc.	1,158		37,832
La-Z-Boy Inc.	1,737		37,797
Allegheny Technologies Inc.	3,120		37,752
Eagle Materials Inc.	639		37,605
Trinity Industries Inc.	1,345		37,391
Integrated Device Technology Inc.1	2,490		37,350
Acuity Brands Inc.	1,560		37,253
Alexandria Real Estate Equities Inc.	587		36,981
United Stationers Inc.1	877		36,922
Susquehanna Bancshares Inc.	1,436		36,805
Flowserve Corp.1	1,754		36,746
VeriSign Inc.1	2,207		36,614
Capital Automotive	1,035		36,546
Premcor Inc.1	1,179		36,514
Delphi Financial Group Inc. Class A	868		36,473
Millennium Chemicals Inc.	2,425		36,229
Payless ShoeSource Inc.1	2,594		36,212
Legg Mason Inc.	390		36,184
CheckFree Corp.1	1,225		36,088
Knight Trading Group Inc.1	2,849		36,068
Western Gas Resources Inc.	709		36,053
American National Insurance Co.	402		35,975
Brandywine Realty Trust	1,174		35,866
Minerals Technologies Inc.	628		35,859
Regis Corp.	806		35,831
Moog Inc. Class A1	1,050		35,826
SkyWest Inc.	1,862		35,825

SCHEDULES OF INVESTMENTS 81

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 VALUE INDEX FUND

March 31, 2004

Security	Shares	Value
GATX Corp.	1,613	$	35,760
Commercial Net Lease Realty Inc.	1,809		35,728
Avery Dennison Corp.	572		35,584
USF Corp.	1,039		35,555
Adaptec Inc.1	4,020		35,215
Donnelley (R.H.) Corp.1	754		35,212
Hovnanian Enterprises Inc. Class A1	816		35,210
Ralcorp Holdings Inc.1	1,155		35,147
International Flavors & Fragrances Inc.	984		34,932
Rowan Companies Inc.1	1,649		34,777
Tidewater Inc.	1,234		34,712
Electronics For Imaging Inc.1	1,405		34,521
Great Lakes Chemical Corp.	1,444		34,439
Smith International Inc.1	643		34,407
Sierra Pacific Resources1	4,636		34,306
Brookline Bancorp Inc.	2,146		34,229
Avista Corp.	1,807		34,188
Thomas & Betts Corp.	1,556		33,952
Hunt (J.B.) Transport Services Inc.1	1,205		33,945
Washington Group International Inc.1	927		33,937
Black Box Corp.	633		33,922
Senior Housing Properties Trust	1,738		33,891
United Rentals Inc.1	1,906		33,870
Post Properties Inc.	1,173		33,782
Entertainment Properties Trust	821		33,587
AVX Corp.	2,029		33,458
First Commonwealth Financial Corp.	2,255		33,329
Novellus Systems Inc.1	1,048		33,316
Radio One Inc. Class D1	1,787		33,060
Big Lots Inc.1	2,274		32,973
Kilroy Realty Corp.	927		32,908
Provident Financial Services Inc.	1,759		32,876
AMETEK Inc.	1,280		32,819
CommScope Inc.1	1,969		32,784
Delta Air Lines Inc.	4,127		32,686
US Oncology Inc.1	2,206		32,605
UnitedGlobalCom Inc. Class A1	3,838		32,585
Instinet Group Inc.1	4,592		32,374
Reliance Steel & Aluminum Co.	919		32,303
Joy Global Inc.	1,148		32,224
Flowers Foods Inc.	1,228		32,223
Renal Care Group Inc.1	704		32,215
Kansas City Southern Industries Inc.1	2,315		32,178
UMB Financial Corp.	634		32,144
GrafTech International Ltd.1	2,148		32,113
Actuant Corp. Class A1	818		32,090
Aquila Inc.1	6,785		31,957
Hancock Holding Co.	1,032		31,951
Lexington Corp. Properties Trust	1,458		31,770
CBRL Group Inc.	800		31,712
LandAmerica Financial Group Inc.	700		31,682
Mueller Industries Inc.	931		31,645
Alleghany Corp.1	128		31,531
Health Net Inc.1	1,262		31,462
Seacoast Financial Services Corp.	937		31,390
CONMED Corp.1	1,061		31,342
BankUnited Financial Corp. Class A1	1,053		31,274
Fuller (H.B.) Co.	1,095		31,142
Spinnaker Exploration Co.1	866		31,107
Chemical Financial Corp.	867		31,099
Men’s Wearhouse Inc. (The)1	1,170		31,087
Tootsie Roll Industries Inc.	849		31,037
Gartner Inc. Class A1	2,658		30,966
LNR Property Corp.	578		30,940
First National Bankshares of Florida	1,756		30,853
Outback Steakhouse Inc.	633		30,827
Cousins Properties Inc.	939		30,790
Benchmark Electronics Inc.1	977		30,756
Northwest Natural Gas Co.	980		30,625
Albemarle Corp.	1,055		30,595
Continental Airlines Inc. Class B1	2,439		30,561
Pepsi Bottling Group Inc.	1,027		30,553
Lincoln Electric Holding Inc.	1,085		30,543
Jack in the Box Inc.1	1,210		30,214
Lennox International Inc.	1,628		30,199
Waypoint Financial Corp.	1,121		30,065
Perrigo Co.	1,495		29,975
Casey’s General Store Inc.	1,804		29,946
OM Group Inc.1	984		29,914
Vintage Petroleum Inc.	2,035		29,833
FirstFed Financial Corp.1	644		29,708

82 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 VALUE INDEX FUND

March 31, 2004

Security	Shares	Value
Cleco Corp.	1,559	$	29,668
PanAmSat Corp.1	1,210		29,621
Liberty Corp.	640		29,613
Commercial Metals Co.	924		29,420
Jacuzzi Brands Inc.1	3,128		29,341
Essex Property Trust Inc.	447		29,278
Charming Shoppes Inc.1	3,751		29,220
Hearst-Argyle Television Inc.	1,085		29,176
Texas Industries Inc.	807		29,173
Redwood Trust Inc.	468		29,096
Human Genome Sciences Inc.1	2,314		28,994
eFunds Corp.1	1,740		28,536
First Citizens BancShares Inc. Class A	232		28,536
Darden Restaurants Inc.	1,149		28,484
Alpharma Inc. Class A	1,449		28,415
Sterling Financial Corp. (Washington)1	767		28,295
New Jersey Resources Corp.	744		28,123
Monaco Coach Corp.	1,048		28,086
Sola International Inc.1	1,208		28,086
Corporate Office Properties Trust	1,119		27,975
Worthington Industries Inc.	1,458		27,950
Cincinnati Bell Inc.1	6,842		27,847
AMCORE Financial Inc.	932		27,764
Saxon Capital Inc.1	977		27,757
Granite Construction Inc.	1,151		27,359
Jones Lang LaSalle Inc.1	1,062		27,304
AMR Corp.1	2,143		27,280
Summit Properties Inc.	1,138		27,141
Scholastic Corp.1	994		27,087
Provident Bankshares Corp.	863		27,081
UniSource Energy Corp.	1,101		27,052
Curtiss-Wright Corp.	574		26,903
Cash America International Inc.	1,165		26,853
Regal Entertainment Group Class A	1,221		26,838
Affiliated Computer Services Inc. Class A1	517		26,832
Quanex Corp.	631		26,811
Ryan’s Family Steak Houses Inc.1	1,566		26,794
Southwest Gas Corp.	1,145		26,793
Seacor Holdings Inc.1	649		26,661
Westport Resources Corp.1	808		26,656
Insight Enterprises Inc.1	1,384		26,642
BankAtlantic Bancorp Inc. Class A	1,570		26,627
Stewart Enterprises Inc. Class A1	3,661		26,615
National Health Investors Inc.	864		26,611
NetIQ Corp.1	1,905		26,594
Diamond Offshore Drilling Inc.	1,099		26,585
Skyworks Solutions Inc.1	2,277		26,550
American Management Systems Inc.1	1,381		26,515
Capitol Federal Financial	738		26,494
Chiquita Brands International Inc.1	1,270		26,479
Meredith Corp.	523		26,443
USEC Inc.	3,120		26,364
Community Health Systems Inc.1	945		26,299
Anixter International Inc.	930		26,272
Viasys Healthcare Inc.1	1,155		26,126
WellChoice Inc.1	707		26,088
Timken Co. (The)	1,119		25,994
Six Flags Inc.1	3,311		25,991
Colonial Properties Trust	636		25,949
Danaher Corp.	277		25,863
Finish Line Inc. (The)1	698		25,812
Brown Shoe Co. Inc.	707		25,756
El Paso Electric Co.1	1,855		25,673
Ascential Software Corp.1	1,170		25,646
Stillwater Mining Co.1	1,633		25,638
DRS Technologies Inc.1	911		25,490
ValueClick Inc.1	2,359		25,477
Student Loan Corp.	164		25,422
Technitrol Inc.1	1,349		25,361
Idex Corp.	582		25,305
USG Corp.1	1,445		25,273
Aztar Corp.1	1,028		25,196
Imagistics International Inc.1	570		25,108
CH Energy Group Inc.	510		25,036
ABM Industries Inc.	1,394		25,022
Stewart Information Services Corp.	636		24,995
Sensient Technologies Corp.	1,337		24,962
Albany International Corp. Class A	921		24,766
MFA Mortgage Investments Inc.	2,432		24,563
Integrated Silicon Solution Inc.1	1,384		24,552

SCHEDULES OF INVESTMENTS 83

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 VALUE INDEX FUND

March 31, 2004

Security	Shares	Value
Philadelphia Consolidated Holding Corp.1	423	$	24,534
NBT Bancorp Inc.	1,090		24,525
First Charter Corp.	1,165		24,523
Michaels Stores Inc.	504		24,504
Landry’s Restaurants Inc.	821		24,490
Carpenter Technology Corp.	744		24,463
Ruddick Corp.	1,206		24,409
Tecumseh Products Co. Class A	579		24,376
RLI Corp.	631		24,357
Equifax Inc.	943		24,348
Synovus Financial Corp.	994		24,303
Denbury Resources Inc.1	1,441		24,295
Manitowoc Co. Inc. (The)	821		24,285
Winn-Dixie Stores Inc.	3,182		24,183
Electro Scientific Industries Inc.1	1,027		24,176
BOK Financial Corp.1	584		23,944
Medarex Inc.1	2,656		23,824
IHOP Corp.	691		23,798
Hudson River Bancorp Inc.	1,154		23,772
Protein Design Labs Inc.1	994		23,677
Brocade Communications Systems Inc.1	3,536		23,550
Magnum Hunter Resources Inc.1	2,316		23,484
Dollar Thrifty Automotive Group Inc.1	929		23,476
Invacare Corp.	520		23,473
Crown Castle International Corp.1	1,855		23,429
Ionics Inc.1	823		23,373
Lamar Advertising Co.1	579		23,287
Mid-America Apartment Communities Inc.	627		23,281
Woodward Governor Co.	365		23,265
Ball Corp.	343		23,249
Axcelis Technologies Inc.1	2,084		23,174
Pilgrim’s Pride Corp.	1,033		23,170
Range Resources Corp.	1,910		23,168
Province Healthcare Co.1	1,457		23,166
Genlyte Group Inc. (The)1	413		23,145
Applera Corp. - Applied Biosystems Group	1,170		23,143
JLG Industries Inc.	1,616		23,109
Spherion Corp.1	2,255		23,069
Rite Aid Corp.1	4,239		23,060
Alaska Air Group Inc.1	932		22,983
Texas Genco Holdings Inc.	642		22,952
CharterMac	924		22,897
Corus Bankshares Inc.	568		22,885
Houston Exploration Co.1	511		22,857
Schulman (A.) Inc.	1,163		22,853
Overseas Shipholding Group Inc.	625		22,812
Keystone Property Trust	927		22,535
IDT Corp.1	1,134		22,533
RAIT Investment Trust	759		22,428
Sovran Self Storage Inc.	535		22,347
Nuevo Energy Co.1	685		22,304
UIL Holdings Corp.	462		22,255
Stage Stores Inc.1	575		22,247
Handleman Co.	929		22,240
Anthracite Capital Inc.	1,744		22,201
Journal Register Co.1	1,062		22,196
Lin TV Corp. Class A1	930		22,143
Equity One Inc.	1,151		22,122
LaSalle Hotel Properties	937		22,113
Shaw Group Inc. (The)1	2,039		22,103
THQ Inc.1	1,092		22,091
Wesco Financial Corp.	57		22,059
Longs Drug Stores Corp.	1,169		22,012
Horace Mann Educators Corp.	1,393		21,898
Sonic Automotive Inc.	872		21,844
Plains Exploration & Production Co.1	1,171		21,827
Northwest Airlines Corp.1	2,158		21,817
Oxford Industries Inc.	472		21,802
Arkansas Best Corp.	813		21,780
G&K Services Inc. Class A	585		21,774
Price Communications Corp.1	1,386		21,746
Bard (C.R.) Inc.	222		21,676
Steel Dynamics Inc.1	871		21,583
UICI1	1,460		21,550
AK Steel Holding Corp.1	3,661		21,490
Heritage Property Investment Trust Inc.	690		21,459
Longview Fibre Co.	1,922		21,450

84 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 VALUE INDEX FUND

March 31, 2004

Security	Shares	Value
Harleysville Group Inc.	1,149	$	21,394
Armor Holdings Inc.1	646		21,383
St. Mary Land & Exploration Co.	639		21,362
Arch Chemicals Inc.	756		21,342
Kirby Corp.1	631		21,321
Laclede Group Inc. (The)	703		21,301
NeighborCare Inc.1	878		21,291
Anworth Mortgage Asset Corp.	1,524		21,275
First Bancorp	510		21,216
Community Bank System Inc.	458		21,196
Incyte Corp.1	2,549		21,182
Meritage Corp.1	285		21,161
CNA Financial Corp.1	765		21,083
SunGard Data Systems Inc.1	767		21,016
Modine Manufacturing Co.	806		21,004
Central Garden & Pet Co.1	583		20,988
Kindred Healthcare Inc.1	415		20,874
PolyOne Corp.1	3,128		20,801
EastGroup Properties Inc.	585		20,767
Universal Compression Holdings Inc.1	630		20,727
PS Business Parks Inc.	446		20,672
Sports Authority Inc. (The)1	515		20,641
Newport Corp.1	1,234		20,632
S1 Corp.1	2,711		20,604
Mid-State Bancshares	870		20,575
Argosy Gaming Co.1	578		20,548
Bandag Inc.	412		20,505
Harvest Natural Resources Inc.1	1,398		20,425
Unizan Financial Corp.	821		20,385
Selective Insurance Group Inc.	576		20,200
Aviall Inc.1	1,328		20,186
Emulex Corp.1	944		20,098
Universal Forest Products Inc.	651		20,090
Griffon Corp.1	930		20,088
Jabil Circuit Inc.1	678		19,954
FelCor Lodging Trust Inc.1	1,911		19,913
Esterline Technologies Corp.1	801		19,905
WesBanco Inc.	655		19,879
Wolverine World Wide Inc.	820		19,787
MCG Capital Corp.	979		19,766
Werner Enterprises Inc.	1,043		19,765
Gold Bancorp Inc.	1,212		19,756
Republic Bancorp Inc.	1,398		19,656
Anchor BanCorp Wisconsin Inc.	763		19,495
Mine Safety Appliances Co.	687		19,483
PSS World Medical Inc.1	1,738		19,448
Pall Corp.	857		19,445
Empire District Electric Co. (The)	858		19,434
Gray Television Inc.	1,324		19,357
AMLI Residential Properties Trust	684		19,323
TierOne Corp.	819		19,238
First Financial Bancorp	1,035		19,147
Spartech Corp.	767		19,098
Fidelity Bankshares Inc.	521		19,095
Florida East Coast Industries Inc.	531		19,020
Acxiom Corp.	866		19,017
Koger Equity Inc.	809		18,987
Primus Telecommunications Group Inc.1	2,256		18,973
American Eagle Outfitters Inc.1	703		18,953
Gardner Denver Inc.1	699		18,929
School Specialty Inc.1	531		18,888
Warnaco Group Inc. (The)1	938		18,844
Cambrex Corp.	699		18,803
Cornerstone Realty Income Trust Inc.	2,011		18,803
South Jersey Industries Inc.	459		18,778
TBC Corp.1	637		18,709
Hawthorne Financial Corp.1	425		18,696
WCI Communities Inc.1	740		18,522
Sunrise Senior Living Inc.1	516		18,499
Watsco Inc.	637		18,473
Pacific Capital Bancorp	465		18,447
Phillips-Van Heusen Corp.	996		18,426
Boca Resorts Inc. Class A1	1,055		18,410
First Sentinel Bancorp Inc.	869		18,379
Petroleum Development Corp.1	640		18,336
Brookfield Homes Corp.	522		18,317
Silicon Graphics Inc.1	7,203		18,296
Steelcase Inc. Class A	1,407		18,291
Quanta Services Inc.1	2,563		18,146
Insight Communications Co. Inc.1	1,813		18,130
MAXIMUS Inc.1	518		18,130

SCHEDULES OF INVESTMENTS 85

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 VALUE INDEX FUND

March 31, 2004

Security	Shares	Value
Community First Bankshares Inc.	564	$	18,127
Pier 1 Imports Inc.	761		18,036
Roto-Rooter Inc.	356		17,996
Greif Inc. Class A	513		17,924
Toro Co.	289		17,918
Interstate Bakeries Corp.	1,574		17,896
Consolidated Graphics Inc.1	463		17,802
Wynn Resorts Ltd.1	505		17,675
Tenneco Automotive Inc.1	1,391		17,652
Rayovac Corp.1	616		17,618
Performance Food Group Co.1	511		17,553
PFF Bancorp Inc.	460		17,540
Schnitzer Steel Industries Inc. Class A	546		17,505
Ditech Communications Corp.1	1,049		17,487
Hecla Mining Co.1	2,078		17,476
Church & Dwight Co. Inc.	403		17,454
Regal-Beloit Corp.	873		17,443
Alfa Corp.	1,281		17,434
Pharmacopeia Inc.1	864		17,384
Triumph Group Inc.1	526		17,384
ITT Industries Inc.	227		17,327
FIRSTFED AMERICA BANCORP INC.	621		17,307
United Auto Group Inc.	632		17,292
Genesco Inc.1	745		17,269
Glacier Bancorp Inc.	534		17,222
Sybase Inc.1	819		17,191
First Community Bancorp	459		17,162
Washington Real Estate Investment Trust	528		17,134
International Multifoods Corp.1	688		17,007
Community Trust Bancorp Inc.	514		16,962
AMC Entertainment Inc.1	1,103		16,931
Superior Industries International Inc.	476		16,869
Orthodontic Centers of America Inc.1	2,135		16,866
Otter Tail Corp.	638		16,856
Russell Corp.	922		16,836
BMC Software Inc.1	861		16,833
URS Corp.1	584		16,808
Ferro Corp.	642		16,788
Varco International Inc.1	925		16,659
Schweitzer-Mauduit International Inc.	515		16,635
Sterling Financial Corp. (Pennsylvania)	643		16,532
First Financial Corp.	562		16,472
Belden Inc.	868		16,466
Taubman Centers Inc.	652		16,411
Lone Star Steakhouse & Saloon Inc.	562		16,405
Safeguard Scientifics Inc.1	4,410		16,405
Swift Energy Co.1	867		16,343
NCO Group Inc.1	699		16,336
Fleetwood Enterprises Inc.1	1,330		16,332
First Financial Bankshares Inc.	407		16,308
Alexion Pharmaceuticals Inc.1	686		16,299
Chesapeake Energy Corp.	1,216		16,294
NCI Building Systems Inc.1	691		16,211
Bedford Property Investors Inc.	532		16,210
Group 1 Automotive Inc.1	447		16,181
GTECH Holdings Corp.	273		16,145
Glimcher Realty Trust	594		16,097
Applera Corp. - Celera Genomics Group1	1,108		16,077
Datascope Corp.	457		16,059
ShopKo Stores Inc.1	1,098		16,053
Meristar Hospitality Corp.1	2,308		16,041
Gaylord Entertainment Co.1	518		16,006
Symbol Technologies Inc.	1,158		15,980
Financial Federal Corp.1	477		15,946
MTS Systems Corp.	575		15,910
Parkway Properties Inc.	340		15,895
Federal Signal Corp.	798		15,840
West Pharmaceutical Services Inc.	423		15,820
United Community Financial Corp.	1,209		15,753
Alliant Techsystems Inc.1	289		15,722
S&T Bancorp Inc.	523		15,721
Simmons First National Corp. Class A	570		15,704
Connecticut Bankshares Inc.	302		15,692
American States Water Co.	642		15,665
William Lyon Homes Inc.1	168		15,658
Glenborough Realty Trust Inc.	700		15,645
Molex Inc.	514		15,620
Triad Guaranty Inc.1	296		15,614
Trammell Crow Co.1	1,105		15,503

86 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 VALUE INDEX FUND

March 31, 2004

Security	Shares	Value
Argonaut Group Inc.1	814	$	15,490
Integra Bank Corp.	642		15,466
Net.B@nk Inc.	1,264		15,433
Hologic Inc.1	762		15,430
WebMD Corp.1	1,734		15,415
InfoSpace Inc.1	395		15,354
Laboratory Corp. of America Holdings1	391		15,347
Smith (A.O.) Corp.	530		15,344
NACCO Industries Inc.	186		15,326
EMCOR Group Inc.1	417		15,304
TriQuint Semiconductor Inc.1	2,092		15,272
Alderwoods Group Inc.1	1,467		15,257
MRV Communications Inc.1	4,568		15,211
First Merchants Corp.	632		15,200
Lance Inc.	925		15,161
American Home Mortgage Investment Corp.	525		15,120
Local Financial Corp.1	693		15,107
Blockbuster Inc.	862		15,085
Kramont Realty Trust	798		15,082
Hain Celestial Group Inc.1	682		15,065
Allegiant Bancorp Inc.	512		15,058
SonicWALL Inc.1	1,673		14,923
Nu Skin Enterprises Inc. Class A	740		14,911
Century Business Services Inc.1	3,020		14,828
Commerce Bancorp Inc.	225		14,823
K2 Inc.1	924		14,812
LaBranche & Co. Inc.	1,321		14,808
Cell Genesys Inc.1	1,228		14,785
General Communication Inc. Class A1	1,624		14,778
Hanger Orthopedic Group Inc.1	817		14,747
Cathay General Bancorp	223		14,678
Prime Hospitality Corp.1	1,287		14,646
RadiSys Corp.1	700		14,630
Stride Rite Corp.	1,376		14,599
Paxar Corp.1	988		14,573
Primedia Inc.1	5,378		14,521
Investors Real Estate Trust	1,472		14,455
Microsemi Corp.1	1,056		14,446
Equity Inns Inc.	1,570		14,444
Andrx Group1	528		14,362
Infinity Property & Casualty Corp.	455		14,301
Irwin Financial Corp.	530		14,299
HomeStore Inc.1	3,371		14,259
Sun Communities Inc.	333		14,259
Jo-Ann Stores Inc.1	508		14,249
Applied Industrial Technologies Inc.	627		14,245
EnPro Industries Inc.1	752		14,228
Maxwell Shoe Co. Inc. Class A1	631		14,204
O’Reilly Automotive Inc.1	354		14,174
Arris Group Inc.1	1,530		14,076
PalmOne Inc.1	655		13,991
Watts Industries Inc. Class A	597		13,964
U.S. Restaurant Properties Inc.	744		13,943
Hercules Inc.1	1,214		13,937
Rofin-Sinar Technologies Inc.1	466		13,910
Credence Systems Corp.1	1,168		13,876
Cabot Oil & Gas Corp.	453		13,844
Albany Molecular Research Inc.1	871		13,840
Deltic Timber Corp.	388		13,766
Chesapeake Corp.	576		13,749
Silicon Storage Technology Inc.1	1,060		13,716
Coherent Inc.1	521		13,697
Exar Corp.1	740		13,690
Global Industries Ltd.1	2,335		13,660
ESS Technology Inc.1	930		13,634
Burlington Coat Factory Warehouse Corp.	686		13,583
Tredegar Corp.	926		13,547
SOURCECORP Inc.1	511		13,542
Advanta Corp. Class B	815		13,529
First Republic Bank	350		13,496
First Federal Capital Corp.	633		13,477
Ocwen Financial Corp.1	1,389		13,432
MB Financial Inc.	344		13,413
Rock-Tenn Co. Class A	928		13,382
Interface Inc. Class A1	1,683		13,380
Cox Radio Inc. Class A1	626		13,334
Stewart & Stevenson Services Inc.	912		13,333
CDI Corp.	412		13,299
Bel Fuse Inc. Class B	406		13,292

SCHEDULES OF INVESTMENTS 87

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 VALUE INDEX FUND

March 31, 2004

Security	Shares	Value
Park Electrochemical Corp.	525	$	13,283
Interactive Data Corp.1	747		13,282
Methode Electronics Inc.	1,028		13,261
AMCOL International Corp.	758		13,227
Agilysys Inc.	1,111		13,221
West Coast Bancorp	581		13,218
Columbia Banking System Inc.	472		13,216
National Penn Bancshares Inc.	417		13,148
Kaydon Corp.	477		13,132
Robert Mondavi Corp. (The) Class A1	347		13,120
International Speedway Corp. Class A	279		13,113
1st Source Corp.	531		13,073
Parker Drilling Co.1	3,135		13,073
Veritas DGC Inc.1	631		13,062
Input/Output Inc.1	1,685		13,059
E.piphany Inc.1	1,805		13,032
Ocular Sciences Inc.1	447		13,030
IBERIABANK Corp.	221		13,006
Jakks Pacific Inc.1	866		12,990
Offshore Logistics Inc.1	563		12,977
InFocus Corp.1	1,386		12,959
Nabi Biopharmaceuticals1	833		12,953
Marcus Corp.	746		12,943
CB Bancshares Inc.	185		12,930
Choice Hotels International Inc.	289		12,930
Perot Systems Corp. Class A1	970		12,901
Kaman Corp. Class A	862		12,870
Berry Petroleum Co. Class A	471		12,849
RTI International Metals Inc.1	811		12,838
Peoples Bancorp Inc.	461		12,820
Pinnacle Entertainment Inc.1	928		12,806
United States Cellular Corp.1	331		12,793
Estee Lauder Companies Inc. Class A	286		12,681
RailAmerica Inc.1	1,051		12,665
Cohu Inc.	679		12,663
GenCorp. Inc.	1,166		12,628
Frontier Airlines Inc.1	1,207		12,577
Jacobs Engineering Group Inc.1	282		12,577
Lawson Software Inc.1	1,509		12,525
Friedman, Billings, Ramsey Group, Inc. Class A	464		12,523
Comstock Resources Inc.1	628		12,478
Avocent Corp.1	338		12,435
Plexus Corp.1	696		12,382
Brookstone Inc.1	450		12,380
Olin Corp.	689		12,299
R&G Financial Corp. Class B	354		12,227
Key Energy Services Inc.1	1,110		12,210
Weis Markets Inc.	361		12,184
Apogee Enterprises Inc.	987		12,170
Presidential Life Corp.	812		12,164
Saul Centers Inc.	398		12,159
Patina Oil & Gas Corp.	460		12,075
Dress Barn Inc.1	687		12,050
Brush Engineered Materials Inc.1	591		11,980
State Auto Financial Corp.	463		11,950
Cato Corp. Class A	595		11,948
Tower Automotive Inc.1	2,368		11,935
Universal Health Realty Income Trust	353		11,896
Univision Communications Inc. Class A1	360		11,884
Walter Industries Inc.	995		11,880
United Fire & Casualty Co.	281		11,878
Kimball International Inc. Class B	750		11,752
Hanover Compressor Co.1	972		11,751
Banner Corp.	401		11,745
Universal American Financial Corp.1	974		11,688
Century Aluminum Co.1	414		11,687
Ethyl Corp.1	589		11,668
Cablevision Systems Corp.1	509		11,646
WSFS Financial Corp.	232		11,639
Network Associates Inc.1	646		11,628
Quantum Corp.1	3,134		11,596
Bank Mutual Corp.	1,035		11,586
FBL Financial Group Inc. Class A	412		11,577
Central Parking Corp.	576		11,566
Peoples Holding Co.	343		11,559
RC2 Corp.1	420		11,550
Valmont Industries Inc.	578		11,548
Caraustar Industries Inc.1	991		11,545
AAR Corp.1	934		11,470
Donaldson Co. Inc.	430		11,408

88 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 VALUE INDEX FUND

March 31, 2004

Security	Shares	Value
BSB Bancorp Inc.	295	$	11,387
Urstadt Biddle Properties Inc. Class A	689		11,369
Humboldt Bancorp	572		11,343
4Kids Entertainment Inc.1	507		11,342
California Water Service Group	398		11,259
ADVO Inc.	349		11,245
Steak n Shake Company (The)1	583		11,223
DIMON Inc.	1,575		11,182
Crompton Corp.	1,738		11,088
Southern Peru Copper Corp.	274		11,083
Intertan Inc.1	793		11,078
Midas Inc.1	569		11,067
Correctional Properties Trust	359		11,057
Keane Inc.1	701		11,034
Haverty Furniture Companies Inc.	514		10,938
J&J Snack Foods Corp.1	242		10,934
Town & Country Trust (The)	402		10,934
Cleveland-Cliffs Inc.1	167		10,927
Genesee & Wyoming Inc. Class A1	442		10,917
CIRCOR International Inc.	483		10,916
Genesis HealthCare Corp.1	448		10,909
Valhi Inc.	862		10,878
Omega Financial Corp.	297		10,859
JDA Software Group Inc.1	745		10,840
Thomas Industries Inc.	344		10,836
Bowne & Co. Inc.	633		10,824
EDO Corp.	448		10,788
Flushing Financial Corp.	595		10,769
Perini Corp.1	679		10,694
Standex International Corp.	395		10,665
SJW Corp.	307		10,641
Republic Bancshares Inc.	353		10,601
Haemonetics Corp.1	337		10,599
Glatfelter Co.	942		10,588
Immunogen Inc.1	1,575		10,584
Atwood Oceanics Inc.1	297		10,570
Octel Corp.	354		10,567
Tompkins Trustco Inc.	232		10,556
Arctic Cat Inc.	414		10,553
Extreme Networks Inc.1	1,460		10,527
Delta & Pine Land Co.	421		10,504
Odyssey Re Holdings Corp.	389		10,503
CCBT Financial Companies Inc.	284		10,480
DST Systems Inc.1	229		10,385
Georgia Gulf Corp.	344		10,372
Russ Berrie & Co. Inc.	296		10,360
Triarc Companies Inc. Class B	945		10,357
Southern Financial Bancorp Inc.	232		10,347
Buckeye Technologies Inc.1	996		10,319
Dade Behring Holdings Inc.1	232		10,319
MemberWorks Inc.1	295		10,301
Time Warner Telecom Inc. Class A1	1,576		10,291
InVision Technologies Inc.1	207		10,282
Analogic Corp.	226		10,281
Movado Group Inc.	343		10,269
City Bank	298		10,260
Westcorp Inc.	232		10,224
Central Pacific Financial Corp.	341		10,158
Northwest Bancorp Inc.	397		10,151
Wellman Inc.	1,215		10,145
Nautilus Group Inc. (The)	639		10,064
Ramco-Gershenson Properties Trust	356		10,039
Artesyn Technologies Inc.1	1,053		10,025
Zygo Corp.1	641		10,019
Ameron International Corp.	297		10,018
Sycamore Networks Inc.1	2,447		9,984
Pope & Talbot Inc.	580		9,970
Rent-A-Center Inc.1	302		9,963
Aaron Rents Inc.	400		9,956
Swift Transportation Co. Inc.1	578		9,924
NUI Corp.	586		9,909
First Financial Holdings Inc.	330		9,864
Encore Acquisition Co.1	356		9,861
DoubleClick Inc.1	876		9,855
Magna Entertainment Corp. Class A1	1,633		9,831
Calgon Carbon Corp.	1,269		9,771
Insituform Technologies Inc. Class A1	625		9,769
Frontier Financial Corp.	284		9,767
Metris Companies Inc.1	1,214		9,761
National Western Life Insurance Co. Class A1	66		9,754
New England Business Service Inc.	288		9,749

SCHEDULES OF INVESTMENTS 89

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 VALUE INDEX FUND

March 31, 2004

Security	Shares	Value
deCODE genetics Inc.1	919	$	9,741
Levitt Corp. Class A1	397		9,727
Barnes Group Inc.	346		9,650
City Holding Co.	280		9,604
Topps Co. (The)	1,001		9,560
Alabama National Bancorp	172		9,549
Ennis Business Forms Inc.	570		9,542
Vans Inc.1	644		9,531
KCS Energy Inc.1	889		9,512
Second Bancorp Inc.	294		9,496
SCBT Financial Corp.	301		9,482
Coachmen Industries Inc.	568		9,474
First Place Financial Corp.	522		9,469
Bank of Granite Corp.	457		9,446
Innkeepers USA Trust	1,033		9,442
CIBER Inc.1	856		9,416
RehabCare Group Inc.1	473		9,403
Horizon Financial Corp.	508		9,362
UniFirst Corp.	339		9,350
Central Vermont Public Service Corp.	414		9,315
Washington Trust Bancorp Inc.	352		9,293
Navigant International Inc.1	515		9,270
Astec Industries Inc.1	572		9,215
BancFirst Corp.	166		9,203
SWS Group Inc.	513		9,188
Skyline Corp.	237		9,141
NS Group Inc.1	703		9,139
Union Bankshares Corp.	283		9,132
Vail Resorts Inc.1	579		9,125
Stein Mart Inc.1	659		9,094
Investment Technology Group Inc.1	592		9,058
Grace (W.R.) & Co.1	2,901		9,051
Stamps.com Inc.	1,509		9,039
Capital City Bank Group Inc.	218		8,993
Collins & Aikman Corp.1	1,630		8,965
Patriot Bank Corp.	306		8,960
SCS Transportation Inc.1	411		8,960
Robbins & Myers Inc.	415		8,943
Midway Games Inc.1	1,227		8,933
Riggs National Corp.	517		8,898
Community Banks Inc.	285		8,881
Elizabeth Arden Inc.1	420		8,870
Action Performance Companies Inc.	580		8,857
Matrix Service Co.1	649		8,781
MainSource Financial Group Inc.	244		8,740
CT Communications Inc.	631		8,727
Duane Reade Inc.1	514		8,707
Baldwin & Lyons Inc. Class B	298		8,651
LTC Properties Inc.	474		8,584
Terayon Communication Systems Inc.1	2,499		8,547
Orbital Sciences Corp.1	677		8,483
Harbor Florida Bancshares Inc.	293		8,479
Myers Industries Inc.	689		8,475
GEO Group Inc. (The)1	367		8,441
C&D Technologies Inc.	505		8,439
Energy Partners Ltd.1	632		8,437
Aftermarket Technology Corp.1	574		8,432
Wind River Systems Inc.1	761		8,424
DuPont Photomasks Inc.1	362		8,420
Healthcare Services Group Inc.	510		8,389
Pathmark Stores Inc.1	1,051		8,387
First Indiana Corp.	416		8,382
World Wrestling Entertainment Inc.	580		8,381
ITLA Capital Corp.1	169		8,359
Asbury Automotive Group Inc.1	481		8,326
Lexicon Genetics Inc.1	1,326		8,314
First Community Bancshares Inc.	272		8,307
ESCO Technologies Inc.1	180		8,302
Pulitzer Inc.	172		8,299
InterCept Inc.1	680		8,289
Rent-Way Inc.1	939		8,263
Komag Inc.1	449		8,262
Praecis Pharmaceuticals Inc.1	1,398		8,262
TriCo Bancshares	221		8,261
Citizens First Bancorp Inc.	341		8,239
Cooper Cameron Corp.1	187		8,237
HEICO Corp.	525		8,237
Goody’s Family Clothing Inc.	577		8,234
PAREXEL International Corp.1	457		8,167
Interchange Financial Services Corp.	336		8,165
Emmis Communications Corp.1	342		8,143
CTS Corp.	624		8,137

90 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 VALUE INDEX FUND

March 31, 2004

Security	Shares	Value
Building Materials Holdings Corp.	463	$	8,126
Bassett Furniture Industries Inc.	407		8,071
Acadia Realty Trust	569		8,029
Berkshire Hills Bancorp Inc.	229		7,992
Angelica Corp.	350		7,990
Atlantic Coast Airlines Holdings Inc.1	1,097		7,975
AmericanWest Bancorporation1	404		7,963
Sandy Spring Bancorp Inc.	218		7,909
Sybron Dental Specialties Inc.1	290		7,903
Vital Sign Inc.	234		7,893
OMNOVA Solutions Inc.1	1,502		7,885
Pericom Semiconductor Corp.1	686		7,875
Applica Inc.1	700		7,868
Financial Institutions Inc.	343		7,862
Entravision Communications Corp.1	875		7,849
Clark Inc.1	461		7,837
Gorman-Rupp Co. (The)	302		7,822
Universal Health Services Inc. Class B	168		7,740
Blair Corp.	290		7,728
Southwest Water Co.	564		7,710
Mission West Properties Inc.	580		7,685
Cubic Corp.	294		7,644
Intermagnetics General Corp.1	288		7,632
EMS Technologies Inc.1	395		7,627
Jarden Corp.1	214		7,599
FloridaFirst Bancorp Inc.	280		7,554
Dura Automotive Systems Inc.1	568		7,549
Wet Seal Inc. Class A1	912		7,524
Getty Realty Corp.	283		7,519
Capital Corporation of the West	192		7,513
Camden National Corp.	235		7,508
GameStop Corp.1	416		7,496
Flagstar Bancorp Inc.	292		7,490
Cirrus Logic Inc.1	987		7,481
REMEC Inc.1	983		7,471
Iomega Corp.	1,329		7,429
American Mortgage Acceptance Corp.	411		7,419
Gene Logic Inc.1	1,463		7,388
Yardville National Bancorp	299		7,385
Herley Industries Inc.1	388		7,325
Great Lakes REIT Inc.	472		7,307
Meridian Resource Corp. (The)1	1,210		7,284
D&E Communications Inc.	520		7,275
Steinway Musical Instruments Inc.1	227		7,275
FuelCell Energy Inc.1	536		7,268
CSK Auto Corp.1	400		7,244
Transkaryotic Therapies Inc.1	421		7,224
Tupperware Corp.	404		7,195
Guess ? Inc.1	399		7,194
Cascade Natural Gas Corp.	330		7,191
Midland Co. (The)	288		7,186
Global Power Equipment Group Inc.1	852		7,174
TIBCO Software Inc.1	878		7,173
USB Holding Co. Inc.	292		7,166
Gibraltar Steel Corp.	291		7,153
Sanders Morris Harris Group Inc.	596		7,134
Oshkosh Truck Corp.	128		7,130
Corvis Corp.1	3,708		7,119
Standard Microsystems Corp.1	267		7,113
Coastal Bancorp Inc.	172		7,112
Lufkin Industries Inc.	226		7,085
Alliance Semiconductor Corp.1	930		7,077
Volt Information Sciences Inc.1	289		7,063
Cross Country Healthcare Inc.1	424		7,060
Penn Engineering & Manufacturing Corp.	414		7,026
Umpqua Holdings Corp.	347		7,006
Kansas City Life Insurance Co.	163		6,975
WMS Industries Inc.1	225		6,975
Cascade Corp.	342		6,943
Tennant Co.	175		6,942
First Oak Brook Bancshares Class A	227		6,926
Interwoven Inc1	694		6,919
Avatar Holdings1	182		6,823
Winston Hotels Inc.	647		6,819
Manufactured Home Communities Inc.	192		6,778
Buckle Inc. (The)	234		6,777
First State Bancorp	219		6,758
Manugistics Group Inc.1	979		6,706
AMN Healthcare Services Inc.1	364		6,679
MasTec Inc.1	704		6,667
National Presto Industries Inc.	171		6,628

SCHEDULES OF INVESTMENTS 91

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 VALUE INDEX FUND

March 31, 2004

Security	Shares	Value
ABC Bancorp	349	$	6,614
Maxygen Inc.1	694		6,586
Heidrick & Struggles International Inc.1	272		6,509
Farmer Brothers Co.	18		6,480
Capstead Mortgage Corp.	350		6,457
Applied Films Corporation1	230		6,417
Unifi Inc.1	1,441		6,384
Network Equipment Technologies Inc.1	639		6,377
Boykin Lodging Co.1	686		6,366
SBS Technologies Inc.1	411		6,354
CNA Surety Corp.1	574		6,343
Lithia Motors Inc. Class A	229		6,332
MarineMax Inc.1	238		6,324
ActivCard Corp.1	974		6,302
Hanmi Financial Corp.	237		6,302
American Physicians Capital Inc.1	301		6,291
Great Southern Bancorp Inc.	128		6,289
Central Coast Bancorp1	342		6,283
Claire’s Stores Inc.	301		6,273
Guilford Pharmaceuticals Inc.1	867		6,268
Farmers Capital Bank Corp.	179		6,265
Resource America Inc. Class A	338		6,253
Omega Healthcare Investors Inc.	572		6,218
Anaren Inc.1	394		6,217
EnergySouth Inc.	178		6,214
Dominion Homes Inc.1	163		6,202
Tier Technologies Inc. Class B1	577		6,168
State Financial Services Corp. Class A	218		6,167
Savient Pharmaceuticals Inc.1	1,631		6,165
Grant Prideco Inc.1	396		6,138
GA Financial Inc.	175		6,134
EarthLink Inc.1	692		6,131
BancTrust Financial Group Inc.	350		6,125
Southwest Bancorp Inc.	354		6,124
Bally Total Fitness Holding Corp.1	1,044		6,118
Semitool Inc.1	480		6,115
M&F Worldwide Corp.1	446		6,106
Alloy Inc.1	1,270		6,096
Nordson Corp.	162		6,069
American Medical Security Group Inc.1	227		6,063
PRG-Schultz International Inc.1	1,378		6,063
Republic Bancorp Inc. Class A	310		6,031
Tweeter Home Entertainment Group Inc.1	638		6,023
Cable Design Technologies Corp.1	635		6,020
Heritage Commerce Corp.1	462		6,006
Dave & Buster’s Inc.1	398		5,990
Valence Technology Inc.1	1,342		5,972
Santander BanCorp	217		5,968
Steven Madden Ltd.1	299		5,968
Department 56 Inc.1	403		5,956
Harland (John H.) Co.	191		5,944
Insurance Auto Auctions Inc.1	407		5,914
Information Holdings Inc.1	286		5,897
CFS Bancorp Inc.	402		5,889
CSS Industries Inc.	177		5,885
Partners Trust Financial Group Inc.	172		5,884
Sequa Corp. Class A1	119		5,879
Pomeroy IT Solutions Inc.	403		5,844
Exchange National Bancshares Inc.	184		5,833
Middlesex Water Co.	281		5,817
Sun Bancorp Inc. (New Jersey)1	230		5,817
Seabulk International Inc.1	653		5,812
Gerber Scientific Inc.1	853		5,800
Milacron Inc.	1,671		5,798
Mindspeed Technologies Inc.1	885		5,779
Frontier Oil Corp.	298		5,775
NBC Capital Corp.	222		5,772
Computer Horizons Corp.1	1,342		5,771
Penn-America Group Inc.	392		5,747
Harte-Hanks Inc.	245		5,738
WD-40 Co.	163		5,705
Prosperity Bancshares Inc.	242		5,702
CRIIMI MAE Inc.1	511		5,698
Matria Healthcare Inc.1	223		5,646
Sauer-Danfoss Inc.	413		5,646
LSI Industries Inc.	464		5,642
Credit Acceptance Corp.1	297		5,640
Dril-Quip Inc.1	343		5,639
Symmetricom Inc.1	628		5,633
Korn/Ferry International1	352		5,632

92 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 VALUE INDEX FUND

March 31, 2004

Security	Shares	Value
21st Century Insurance Group	391	$	5,630
Libbey Inc.	217		5,627
Silgan Holdings Inc.1	123		5,625
Hooker Furniture Corp.	242		5,624
Entercom Communications Corp.1	124		5,613
National Processing Inc.1	295		5,605
O’Charley’s Inc.1	307		5,603
Ducommun Inc.1	239		5,585
Lawson Products Inc.	171		5,576
MSC.Software Corp.1	631		5,559
Sipex Corp.1	875		5,513
Texas Regional Bancshares Inc. Class A	129		5,489
Courier Corp.	122		5,460
McGrath Rentcorp	179		5,458
Siliconix Inc.1	116		5,409
Photronics Inc.1	304		5,393
Cornell Companies Inc.1	465		5,380
Wayne Bancorp Inc.	229		5,359
Associated Estates Realty Corp.	582		5,337
Theragenics Corp.1	991		5,332
First of Long Island Corp.	106		5,323
Nature’s Sunshine Products Inc.	357		5,298
Navigators Group Inc.1	184		5,296
McLeodUSA Inc. Class A1	3,546		5,284
Nash Finch Co.	223		5,281
Stepan Co.	230		5,253
Alico Inc.	164		5,231
Accredited Home Lenders Holding Co.1	132		5,201
Cerner Corp.1	115		5,197
Electro Rent Corp.	515		5,181
Heartland Financial USA Inc.	277		5,157
Gabelli Asset Management Inc. Class A	128		5,156
Advanced Marketing Services Inc.	519		5,138
Lattice Semiconductor Corp.1	588		5,133
Landauer Inc.	122		5,124
Tanger Factory Outlet Centers Inc.	112		5,076
WatchGuard Technologies Inc.1	649		5,075
First Busey Corp. Class A	187		5,070
BISYS Group Inc. (The)1	300		5,028
CuraGen Corp.1	804		5,017
CLARCOR Inc.	113		4,989
Enstar Group Inc.1	108		4,983
Mentor Graphics Corp.1	279		4,972
Lakeland Bancorp Inc.	302		4,971
Camco Financial Corp.	303		4,960
Willow Grove Bancorp Inc.	277		4,958
Mobile Mini Inc.1	286		4,948
West Marine Inc.1	155		4,937
Pennsylvania Real Estate Investment Trust	131		4,933
Arrow International Inc.	165		4,932
First Defiance Financial Corp.	177		4,931
National Bankshares Inc.	98		4,930
Parkvale Financial Corp.	172		4,930
Casella Waste Systems Inc. Class A1	339		4,929
FNB Corp. (Virginia)	179		4,928
EverTrust Financial Group Inc.	269		4,907
Massbank Corp.	123		4,892
Merchants Bancshares Inc.	170		4,847
Sanfilippo (John B.) & Son Inc.1	132		4,844
Franklin Electric Co. Inc.	76		4,840
LSB Bancshares Inc.	279		4,818
KFx Inc.1	461		4,790
Compucom Systems Inc.1	872		4,787
iGATE Corp.1	685		4,774
Parametric Technology Corp.1	1,054		4,764
Firstbank Corp.	179		4,761
Sterling Bancshares Inc.	354		4,740
Churchill Downs Inc.	122		4,731
American Woodmark Corp.	71		4,719
Smart & Final Inc.1	408		4,684
Kelly Services Inc. Class A	158		4,678
Sterling Bancorp (New York)	160		4,664
First Horizon Pharmaceutical Corp.1	295		4,649
Roxio Inc.1	1,040		4,649
Global Payments Inc.	103		4,643
Infonet Services Corp. Class B1	2,330		4,637
Powerwave Technologies Inc.1	592		4,618
LodgeNet Entertainment Corp.1	243		4,617

SCHEDULES OF INVESTMENTS 93

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 VALUE INDEX FUND

March 31, 2004

Security	Shares	Value
C&F Financial Corp.	113	$	4,606
ProAssurance Corp.1	131		4,585
Rex Stores Corp.1	291		4,580
McMoRan Exploration Co.1	308		4,558
Isle of Capri Casinos Inc.1	181		4,550
Monro Muffler Brake Inc.1	181		4,523
Watson Wyatt & Co. Holdings1	178		4,493
Perry Ellis International Inc.1	163		4,481
Safety Insurance Group Inc.	234		4,446
Stoneridge Inc.1	308		4,441
Seacoast Banking Corp. of Florida	214		4,430
Lakeland Financial Corp.	131		4,424
C-COR.net Corp.1	313		4,388
MedQuist Inc.1	278		4,376
MutualFirst Financial Inc.	181		4,357
Viasat Inc.1	175		4,354
PennFed Financial Services Inc.	122		4,314
General Cable Corp.1	583		4,303
MKS Instruments Inc.1	179		4,298
Commercial Bankshares Inc.	158		4,285
Woodhead Industries Inc.	285		4,275
Gundle/SLT Environmental Inc.1	232		4,273
Advent Software Inc.1	228		4,264
Capitol Bancorp Ltd.	157		4,255
iPayment Holdings Inc.1	126		4,191
Northern States Financial Corp.	157		4,179
ESB Financial Corp.	298		4,172
Lydall Inc.1	409		4,172
Southside Bancshares Inc.	224		4,169
Westfield Financial Inc.	169		4,161
Regent Communications Inc.1	638		4,153
PDI Inc.1	164		4,148
Oak Hill Financial Inc.	127		4,147
Tarragon Realty Investors Inc.1	291		4,147
D&K Healthcare Resources Inc.	404		4,141
OceanFirst Financial Corp.	165		4,113
National Health Realty Inc.	220		4,110
BRT Realty Trust	171		4,080
Talbots Inc. (The)	114		4,079
Strattec Security Corp.1	64		4,052
American West Holdings Corp. Class B1	425		4,050
Foothill Independent Bancorp	184		4,048
Horizon Offshore Inc.1	1,331		4,033
Friedman’s Inc.	695		4,031
Restoration Hardware Inc.1	810		4,026
OshKosh B’Gosh Inc. Class A	172		4,025
Owens & Minor Inc.	159		4,023
Schawk Inc.	299		4,001
Security Bank Corp.	133		3,990
Ryerson Tull Inc.	302		3,953
Greenbrier Companies Inc.1	234		3,952
PMA Capital Corp. Class A	651		3,952
SEMCO Energy Inc.	697		3,945
TransMontaigne Inc.1	644		3,928
Ampco-Pittsburgh Corp.	303		3,912
Material Sciences Corp.	355		3,905
PalmSource Inc.1	214		3,888
State Bancorp Inc.	161		3,880
Alamo Group Inc.	223		3,878
Cubist Pharmaceuticals Inc.1	421		3,873
Warwick Community Bancorp	115		3,853
Taylor Capital Group Inc.	167		3,849
Stanley Furniture Co. Inc.	99		3,844
Great American Financial Resources Inc.	243		3,830
PICO Holdings Inc.1	233		3,828
Sykes Enterprises Inc.1	639		3,802
Palm Harbor Homes Inc.1	181		3,794
Coastal Financial Corp.	233		3,790
Pediatrix Medical Group Inc.1	60		3,780
Maritrans Inc.	240		3,770
Financial Industries Corp.1	284		3,766
Summit Bancshares Inc.	125		3,763
7-Eleven Inc.1	248		3,762
Greater Community Bancorp	233		3,749
Aaon Inc.1	189		3,740
Sypris Solutions Inc.	220		3,740
Brooks Automation Inc.1	178		3,734
Ingles Markets Inc. Class A	347		3,715
Three-Five Systems Inc.1	567		3,714
Hudson Highland Group Inc.1	133		3,708
Oil States International Inc.1	275		3,696

94 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 VALUE INDEX FUND

March 31, 2004

Security	Shares	Value
Standard Motor Products Inc.	234	$	3,669
Computer Network Technology Corp.1	458		3,664
Encore Wire Corp.1	98		3,650
Skechers U.S.A. Inc. Class A1	278		3,645
Standard Register Co. (The)	226		3,623
Price Legacy Corporation1	211		3,598
First United Corp.	156		3,594
Ambassadors International Inc.	271		3,537
Technical Olympic USA Inc.1	110		3,520
Gentiva Health Services Inc.1	227		3,516
Cumulus Media Inc. Class A1	175		3,498
Pacific Union Bank	119		3,493
Coca-Cola Bottling Co. Consolidated	68		3,471
Sizeler Property Investors Inc.	297		3,457
Penn Virginia Corp.	57		3,454
Independence Holding Co.	111		3,420
Martha Stewart Living Omnimedia Inc. Class A1	306		3,366
Columbia Bancorp	109		3,357
Steris Corp.1	129		3,328
Kronos Worldwide Inc.	109		3,311
Wausau-Mosinee Paper Corp.	233		3,283
First Albany Companies Inc.	237		3,280
Hutchinson Technology Inc.1	116		3,255
CEVA Inc.1	345		3,245
Sun Bancorp Inc. (Pennsylvania)	165		3,218
OSI Systems Inc.1	160		3,200
Donegal Group Inc. Class A	159		3,186
NetScout Systems Inc.1	412		3,168
Dobson Communications Corp. Class A1	1,093		3,159
Finlay Enterprises Inc.1	175		3,152
Stellent Inc.1	422		3,152
Chesapeake Utilities Corp.	123		3,151
Quaker City Bancorp Inc.	57		3,101
Lightbridge Inc.1	525		3,097
Identix Inc.1	535		3,092
Royal Bancshares of Pennsylvania Class A	120		3,060
Powell Industries Inc.1	171		3,037
Quaker Chemical Corp.	119		3,023
Arden Group Inc. Class A	40		3,020
TRC Companies Inc.1	160		2,994
Independent Bank Corp. (Michigan)	107		2,981
American National Bankshares Inc.	121		2,968
Metrologic Instruments Inc.1	126		2,948
Connecticut Water Service Inc.	104		2,943
Citizens South Banking Corp.	214		2,906
NN Inc.	249		2,906
Riviana Foods Inc.	104		2,902
Inverness Medical Innovations Inc.1	158		2,891
TeleTech Holdings Inc.1	459		2,873
SBA Communications Corp.1	738		2,863
Young Broadcasting Inc. Class A1	158		2,860
Charlotte Russe Holding Inc.1	156		2,855
Bryn Mawr Bank Corp.	124		2,840
NIC Inc.1	469		2,833
Shenandoah Telecommunications Co.	124		2,833
Deb Shops Inc.	110		2,828
Sanderson Farms Inc.	77		2,828
Center Bancorp Inc.	177		2,798
Petroleum Helicopters Inc.1	113		2,791
Heartland Express Inc.	122		2,779
CVB Financial Corp.	133		2,761
Pemstar Inc.1	755		2,756
Aether Systems Inc.1	589		2,739
Pegasus Communications Corp.1	71		2,722
Orleans Homebuilders Inc.1	113		2,718
Whitehall Jewellers Inc.1	296		2,705
CUNO Inc.1	60		2,693
MAIR Holdings Inc.1	294		2,687
FNB Corp. (North Carolina)	126		2,685
Brady Corp. Class A	70		2,666
Richardson Electronics Ltd.	220		2,664
AsiaInfo Holdings Inc.1	408		2,660
Provident Financial Holdings Inc.	101		2,624
NetRatings Inc.1	237		2,619
Shoe Carnival Inc.1	169		2,618
Integrated Electrical Services Inc.1	224		2,518
U.S. Xpress Enterprises Inc. Class A1	176		2,501
Medallion Financial Corp.	288		2,491

SCHEDULES OF INVESTMENTS 95

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 VALUE INDEX FUND

March 31, 2004

Security	Shares	Value
Playboy Enterprises Inc. Class B1	176	$	2,468
Standard Commercial Corp.	132		2,449
NASB Financial Inc.	61		2,427
Metro One Telecommunications Inc.1	1,049		2,413
WFS Financial Inc.	55		2,383
Curative Health Services Inc.1	176		2,358
First M&F Corp.	70		2,358
ACLARA BioSciences Inc.1	596		2,336
Boyds Collection Ltd. (The)1	930		2,334
Noland Co.	49		2,331
Cole National Corp.1	105		2,317
EGL Inc.1	129		2,317
Crawford & Co. Class B	452		2,296
Children’s Place Retail Stores Inc. (The)1	74		2,292
Chronimed Inc.1	295		2,292
Fisher Communications Inc.1	47		2,291
Audiovox Corp. Class A1	113		2,260
Finisar Corp.1	1,033		2,252
CompuCredit Corp.1	106		2,241
First Consulting Group Inc.1	357		2,235
Tyler Technologies Inc.1	229		2,224
BHA Group Inc.	74		2,219
Systemax Inc.1	417		2,202
MIM Corp.1	289		2,198
Synplicity Inc.1	305		2,196
TALX Corp.	100		2,195
Kadant Inc.1	105		2,189
Modtech Holdings Inc.1	291		2,156
Century Bancorp Inc. Class A	65		2,151
American Land Lease Inc.	104		2,125
Pantry Inc. (The)1	106		2,112
MRO Software Inc.1	181		2,103
Bay View Capital Corp.	933		2,081
WESCO International Inc.1	139		2,071
Mestek Inc.1	115		2,068
MSC Industrial Direct Co. Inc. Class A	69		2,067
Holly Corp.	64		2,039
Columbia Bancorp (Oregon)	124		2,034
Dover Motorsports Inc.	526		2,025
Seaboard Corp.	6		2,010
CCC Information Services Group Inc.1	113		2,008
Hypercom Corp.1	252		2,001
Oplink Communications Inc.1	797		2,000
Papa John’s International Inc.1	59		1,997
Oneida Ltd.	809		1,982
Virginia Financial Group Inc.	57		1,981
Wilsons The Leather Experts Inc.1	707		1,973
Independent Bank Corp. (Massachusetts)	65		1,970
ElkCorp	72		1,950
Bruker BioSciences Corp.1	387		1,939
Crown Media Holdings Inc.1	237		1,917
Interland Inc.1	461		1,904
Pegasus Solutions Inc.1	163		1,904
Dover Downs Gaming & Entertainment Inc.	174		1,864
Internet Security Systems Inc.1	105		1,852
Verso Technologies Inc.1	1,109		1,852
PC Connection Inc.1	234		1,846
Veeco Instruments Inc.1	65		1,823
Paxson Communications Corp.1	462		1,802
Big 5 Sporting Goods Corp.1	71		1,793
Speedway Motorsports Inc.	59		1,788
Transcontinental Realty Investments Inc.1	122		1,770
Center Financial Corp.	110		1,731
Littelfuse Inc.1	46		1,711
Zenith National Insurance Corp.	43		1,686
Neose Technologies Inc.1	179		1,683
Waste Connections Inc.1	42		1,672
West Corp.1	66		1,643
United Capital Corp.	75		1,641
Net2Phone Inc.1	314		1,633
World Fuel Services Corp.	44		1,616
Covenant Transport Inc. Class A1	89		1,605
Emerson Radio Corp.1	419		1,601
Keynote Systems Inc.1	123		1,583
SureWest Communications	58		1,554
Newpark Resources Inc.1	298		1,550
First Bancorp (North Carolina)	49		1,543

96 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 VALUE INDEX FUND

March 31, 2004

Security	Shares	Value
Sturm Ruger & Co. Inc.	113	$	1,527
K-Swiss Inc. Class A	61		1,493
PAB Bankshares Inc.	117		1,486
TTM Technologies Inc.1	120		1,478
CEC Entertainment Inc.1	43		1,475
Macatawa Bank Corp.	51		1,421
GB&T Bancshares Inc.	50		1,407
Intergraph Corp.1	58		1,402
Alliance Imaging Inc.1	356		1,388
Eastern Virginia Bankshares	60		1,382
United Security Bancshares	55		1,359
Keithley Instruments Inc.	65		1,346
SY Bancorp Inc.	60		1,344
Resource Bankshares Corp.	40		1,304
Energy Conversion Devices Inc.1	133		1,303
EMC Insurance Group Inc.	61		1,285
Oceaneering International Inc.1	42		1,279
Mail-Well Inc.1	286		1,278
Hampshire Group Ltd.1	41		1,250
Chattem Inc.1	48		1,244
Playtex Products Inc.1	180		1,244
Nara Bancorp Inc.	41		1,214
NYMAGIC Inc.	47		1,189
Trans World Entertainment Corp.1	124		1,176
Nelson (Thomas) Inc.	43		1,170
Concord Camera Corp.1	186		1,168
DJ Orthopedics Inc.1	43		1,112
Fairchild Corp. (The) Class A1	219		1,091
Genesis Microchip Inc.1	65		1,089
Vastera Inc.1	278		1,079
SimpleTech Inc.1	227		1,078
Beverly Enterprises Inc.1	168		1,075
Rudolph Technologies Inc.1	57		1,068
Main Street Banks Inc.	39		1,066
Medical Staffing Network Holdings Inc.1	123		968
MarketWatch.com Inc.1	66		920
Serologicals Corp.1	45		918
Aphton Corp.1	187		879
Zhone Technologies Inc.1	220		856
Boston Beer Co. Inc. Class A1	45		829
Omega Protein Corp.1	114		829
Great Atlantic & Pacific Tea Co.1	106		820
Entrust Inc.1	184		804
Tollgrade Communications Inc.1	50		798
White Electronic Designs Corp.1	103		788
Arena Pharmaceuticals Inc.1	121		786
NL Industries Inc.	56		778
Register.com1	129		764
NYFIX Inc.1	142		733
Universal Electronics Inc.1	55		726
Redback Networks Inc.1	109		687
GulfMark Offshore Inc.1	43		676
Galyan’s Trading Co.1	66		664
Ultimate Electronics Inc.1	101		660
Revlon Inc. Class A1	237		656
Specialty Laboratories Inc.1	60		648
Raindance Communications Inc.1	217		618
Vicor Corp.1	50		614
Option Care Inc.1	53		604
Lindsay Manufacturing Co.	25		602
Neoforma Inc.1	55		598
Liquidmetal Technologies1	181		577
Inter Parfums Inc.	25		575
Meridian Bioscience Inc.	55		561
Midwest Banc Holdings Inc.	23		543
Virage Logic Corp.1	54		499
IXYS Corp.1	53		498
Wild Oats Markets Inc.1	42		497
GTC Biotherapeutics Inc.1	223		491
MBT Financial Corp.	26		447
Pegasystems Inc.1	54		444
National Beverage Corp.	46		438
Forrester Research Inc.1	23		436
Clayton Williams Energy Inc.1	12		416
Sirna Therapeutics Inc.1	102		413
Blount International Inc.1	41		410
Aspen Technology Inc.1	48		392
Mercantile Bank Corp.	11		390
First Citizens Banc Corp.	14		373
Optical Communication Products Inc.1	108		355

SCHEDULES OF INVESTMENTS 97

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 VALUE INDEX FUND

March 31, 2004

Security	Shares or Principal		Value
Raytech Corp.1		114	$	328
Biopure Corp.1		173		273
Central European Distribution Corp.1		8		259
RCN Corp.1		871		253
FFLC Bancorp Inc.		9		242
United PanAm Financial Corp.1		11		176
Atari Inc.1		44		150
Hickory Tech Corp.		12		149
CoBiz Inc.		6		123
Maui Land & Pineapple Co. Inc.1		3		104
Flag Financial Corp.		6		77
P.A.M. Transportation Services Inc.1		4		69
American Realty Investors Inc.1		6		58
PetroCorp Inc.2		190		—
WilTel Communications Group Inc.2		290		—
TOTAL COMMON STOCKS (Cost: $198,236,689)				225,685,660
SHORT-TERM INVESTMENTS – 10.43%
MONEY MARKET FUNDS – 4.14%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares3,4		6,668,704		6,668,704
Barclays Global Investors Funds Prime Money Market Fund, Institutional Shares3,4		2,103,852		2,103,852
BlackRock Temp Cash Money Market Fund3		98,477		98,477
Short-Term Investment Co. – Liquid Assets Money Market Portfolio3		490,401		490,401
				9,361,434
FLOATING RATE NOTES – 2.05%
Beta Finance Inc.
1.05%, 05/20/043,5	$	95,630		95,628
1.05%, 09/15/043,5		191,259		191,251
1.06%, 10/12/043,5		95,630		95,625
1.14%, 08/23/043,5		95,630		95,662
Security	Principal		Value
CC USA Inc.
1.05%, 04/19/043,5	$	84,154	$	84,154
1.06%, 05/24/043,5		191,259		191,257
1.09%, 07/15/043,5		95,630		95,640
1.51%, 02/15/053,5		124,319		124,492
Dorada Finance Inc.
1.04%, 07/01/043		66,941		66,765
1.05%, 05/20/043,5		191,259		191,255
1.24%, 08/09/043		47,815		47,812
1.48%, 01/18/053,5		143,444		143,439
Five Finance Inc.
1.06%, 04/15/043,5		95,630		95,630
HBOS Treasury Services PLC
1.10%, 04/22/053		191,259		191,259
Holmes Financing PLC
1.05%, 04/15/043		19,126		19,126
K2 USA LLC
1.05%, 08/16/043,5		47,815		47,812
1.05%, 09/27/043,5		206,560		206,545
1.06%, 04/13/043		95,630		95,630
1.06%, 05/17/043		95,630		95,629
1.46%, 01/12/053,5		95,630		95,622
Links Finance LLC
1.05%, 06/28/043		95,630		95,625
1.06%, 05/04/043		95,630		95,629
1.06%, 07/20/043		76,504		76,500
Nationwide Building Society
1.09%, 07/23/043,5		143,444		143,444
1.11%, 12/28/043,5		191,259		191,259
Northern Rock PLC
1.11%, 01/13/053,5		181,696		181,696
Permanent Financing PLC
1.04%, 03/10/053		191,259		191,259
1.05%, 12/10/043		95,630		95,630
Sigma Finance Inc.
1.05%, 07/01/043		95,630		95,624
1.06%, 07/20/043		95,630		95,624
1.09%, 10/07/043		191,259		191,240
1.24%, 08/06/043		47,815		47,813
Tango Finance Corp.
1.05%, 01/18/053,5		84,154		84,147

98 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 VALUE INDEX FUND

March 31, 2004

Security	Principal		Value
1.06%, 07/15/043,5	$	57,378	$	57,372
1.07%, 02/25/053,5		107,105		107,086
1.10%, 07/06/043,5		57,378		57,376
WhistleJacket Capital LLC
1.05%, 09/15/043,5		95,630		95,621
1.32%, 02/04/053,5		47,815		47,807
White Pine Finance LLC
1.04%, 08/26/043,5		95,630		95,624
1.05%, 11/15/043,5		114,756		114,756
1.06%, 04/20/043,5		95,630		95,630
1.06%, 07/06/043,5		114,756		114,753
				4,641,748
COMMERCIAL PAPER – 1.90%
Alpine Securitization Corp.
1.03%, 04/14/043		89,892		89,858
1.03%, 04/20/043		95,630		95,578
1.03%, 04/23/043		112,843		112,772
1.03%, 04/26/043		95,630		95,561
Amsterdam Funding Corp.
1.03%, 05/05/043		77,460		77,385
Barton Capital Corp.
1.03%, 04/02/043		99,663		99,660
Blue Ridge Asset Funding Corp.
1.02%, 04/23/043		57,378		57,342
1.03%, 05/21/043		95,630		95,493
Corporate Asset Funding
1.05%, 05/21/043		99,455		99,310
Corporate Receivables Corp.
1.03%, 04/07/043		95,630		95,613
1.04%, 06/03/043		191,259		190,912
Delaware Funding Corp.
1.03%, 04/02/043		95,630		95,627
1.03%, 05/05/043		143,603		143,464
1.03%, 05/21/043		47,815		47,746
Edison Asset Securitization
1.07%, 09/21/043		95,630		95,138
Eureka Securitization Inc.
1.03%, 05/25/043		38,252		38,193
1.04%, 04/14/043		114,756		114,712
Falcon Asset Securitization
1.03%, 04/15/043		114,933		114,887
1.03%, 04/22/043		112,843		112,775
1.03%, 04/30/043		95,630		95,550
Galaxy Funding Inc.
1.05%, 05/17/043		95,630		95,502
Gemini Securitization Corp.
1.03%, 04/20/043		57,416		57,385
1.03%, 04/23/043		110,523		110,453
1.03%, 04/30/043		67,023		66,967
1.03%, 05/24/043		47,815		47,742
1.04%, 04/19/043		47,815		47,790
GIRO Funding US Corp.
1.05%, 05/19/043		47,815		47,748
Jupiter Securitization Corp.
1.03%, 04/16/043		191,259		191,177
1.03%, 04/19/043		258,200		258,067
1.03%, 04/28/043		114,756		114,667
1.03%, 04/30/043		162,905		162,770
Liberty Street Funding Corp.
1.04%, 04/08/043		67,010		66,996
1.05%, 04/05/043		77,460		77,451
Polonius Inc.
1.04%, 05/21/043		110,644		110,484
Preferred Receivables Funding Corp.
1.03%, 04/19/043		200,822		200,719
1.04%, 04/23/043		219,948		219,808
1.04%, 05/20/043		47,815		47,747
Receivables Capital Corp.
1.04%, 04/14/043		84,154		84,122
Scaldis Capital LLC
1.05%, 06/30/043		68,471		68,291
Thames Asset Global Securitization No. 1 Inc.
1.03%, 04/19/043		95,630		95,580
Thunder Bay Funding Inc.
1.03%, 04/19/043		60,830		60,799
1.04%, 04/29/043		86,143		86,074
				4,285,915

SCHEDULES OF INVESTMENTS 99

Schedule of Investments (Continued)

iSHARES^® RUSSELL 3000 VALUE INDEX FUND

March 31, 2004

Security	Principal		Value
TIME DEPOSITS – 1.62%
Abbey National Treasury Services PLC
1.08%, 04/01/043	$	669,408	$	669,408
1.33%, 02/10/053		95,630		95,617
1.39%, 02/02/053		95,630		95,618
1.40%, 10/25/043		191,259		191,243
Bank of New York
1.39%, 11/01/043		191,259		191,248
Bank of Nova Scotia
1.24%, 10/07/043		143,444		143,437
1.42%, 10/29/043		143,444		143,451
Canadian Imperial Bank of Commerce
1.24%, 10/07/043		143,444		143,433
1.38%, 11/22/043		47,815		47,817
1.40%, 10/29/043		191,259		191,257
National City Bank (Cleveland, Ohio)
1.02%, 04/01/043		286,889		286,889
Toronto-Dominion Bank
1.04%, 06/22/043		47,815		47,815
1.22%, 03/23/053		334,704		334,647
1.34%, 02/10/053		76,504		76,494
1.41%, 11/01/043		143,444		143,436
UBS Finance (Delaware)
1.06%, 04/01/043		382,519		382,519
1.10%, 09/08/043		191,259		190,324
1.11%, 12/17/043		286,889		284,589
				3,659,242
REPURCHASE AGREEMENTS – 0.51%
Bank of America, NA
1.06%, 04/01/043		382,519		382,519
Goldman, Sachs & Co.
1.08%, 04/01/043		765,037		765,037
				1,147,556
U.S. GOVERNMENT AGENCY NOTES – 0.21%
Federal Home Loan Mortgage Corporation
1.15%, 05/12/043		143,444		143,257
1.28%, 08/19/043		76,504		76,123
Federal National Mortgage Association
1.28%, 08/20/043		248,637		247,384
				466,764
TOTAL SHORT-TERM INVESTMENTS (Cost: $23,562,659)				23,562,659
TOTAL INVESTMENTS IN SECURITIES – 110.35% (Cost $221,799,348)				249,248,319
Other Assets, Less Liabilities – (10.35%)				(23,376,012	)
NET ASSETS – 100.00%			$	225,872,307

¹ Non-income earning securities.

² Security valued at fair value in accordance with procedures approved by the Board of Trustees. See Note 1.

³ All or a portion of this security represents investments of securities lending collateral.

⁴ Issuer is an affiliate of the Fund’s investment advisor. See Note 2.

⁵ Security exempt from registration under Rule 144A of the Securities Act of 1933.

These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

See notes to financial statements.

100 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® RUSSELL MIDCAP INDEX FUND

March 31, 2004

Security	Shares	Value
COMMON STOCKS – 99.94%
Zimmer Holdings Inc.1	49,231	$	3,632,263
Lucent Technologies Inc.1	843,503		3,466,797
Biogen Idec Inc.1	59,717		3,320,265
Countrywide Financial Corp.	33,433		3,206,225
International Game Technology Inc.	69,651		3,131,509
Agilent Technologies Inc.1	96,063		3,038,473
Corning Inc.1	271,379		3,034,017
Starbucks Corp.1	79,616		3,005,504
Symantec Corp.1	63,442		2,937,365
Caremark Rx Inc.1	81,670		2,715,514
Aetna Inc.	29,310		2,629,693
Staples Inc.1	101,512		2,577,390
Hancock (John) Financial Services Inc.	58,902		2,573,428
TJX Companies Inc.	104,674		2,570,793
Electronic Arts Inc.1	45,787		2,470,667
Praxair Inc.	66,220		2,458,086
PG&E Corp.1	83,395		2,415,953
SouthTrust Corp.	69,333		2,299,082
Johnson Controls Inc.	38,421		2,272,602
Fortune Brands Inc.	29,589		2,267,405
Yum! Brands Inc.1	59,554		2,262,456
Allergan Inc.	26,540		2,233,606
Lexmark International Inc.1	23,980		2,206,160
Xerox Corp.1	151,062		2,200,973
Public Service Enterprise Group Inc.	46,028		2,162,395
Marathon Oil Corp.	63,140		2,125,924
Federated Department Stores Inc.	38,164		2,062,764
May Department Stores Co. (The)	58,925		2,037,627
Pitney Bowes Inc.	47,720		2,033,349
Biomet Inc.	52,567		2,016,470
PPG Industries Inc.	34,580		2,016,014
Apple Computer Inc.1	74,488		2,014,900
Consolidated Edison Inc.	45,492		2,006,197
Unocal Corp.	52,567		1,959,698
Monsanto Co.	53,255		1,952,861
KLA-Tencor Corp.1	38,773		1,952,221
Comerica Inc.	35,685		1,938,409
Penney (J.C.) Co. Inc. (Holding Co.)	55,272		1,922,360
Sears, Roebuck and Co.	44,293		1,902,827
PACCAR Inc.	33,569		1,887,921
Micron Technology Inc.1	112,656		1,882,482
TXU Corp.	65,651	$	1,881,558
Franklin Resources Inc.	33,460		1,863,053
Adobe Systems Inc.	47,230		1,862,279
Block (H & R) Inc.	36,488		1,861,983
Safeway Inc.1	89,918		1,850,512
Northern Trust Corp.	39,513		1,840,911
MBIA Inc.	29,306		1,837,486
Limited Brands Inc.	90,460		1,809,200
New York Community Bancorp Inc.	52,478		1,798,946
Moody’s Corp.	25,327		1,793,152
Archer-Daniels-Midland Co.	105,667		1,782,602
Electronic Data Systems Corp.	91,893		1,778,130
Juniper Networks Inc.1	68,230		1,774,662
Bear Stearns Companies Inc. (The)	20,229		1,773,679
Norfolk Southern Corp.	79,395		1,753,836
Marshall & Ilsley Corp.	46,171		1,745,726
Broadcom Corp. Class A1	44,401		1,739,187
Georgia-Pacific Corp.	51,112		1,721,963
St. Paul Companies Inc.	42,903		1,716,549
Lincoln National Corp.	36,126		1,709,482
Marriott International Inc. Class A	40,145		1,708,170
Ameren Corp.	37,055		1,707,865
Eaton Corp.	30,324		1,703,906
CIGNA Corp.	28,554		1,685,257
AmSouth Bancorp	71,512		1,681,247
McKesson Corp.	55,864		1,680,948
Intuit Inc.1	37,451		1,680,801
Simon Property Group Inc.	28,590		1,670,800
Equity Residential	55,507		1,656,884
Regions Financial Corp.	45,237		1,652,055
Mattel Inc.	89,551		1,651,320
National Semiconductor Corp.1	37,133		1,649,819
Charter One Financial Inc.	45,957		1,625,040
PPL Corp.	35,627		1,624,591
Dover Corp.	41,347		1,603,023
Altera Corp.1	78,218		1,599,558
Jefferson-Pilot Corp.	29,021		1,596,445
SunGard Data Systems Inc.1	57,920		1,587,008
Valero Energy Corp.	26,358		1,580,426
Starwood Hotels & Resorts Worldwide Inc.	38,731		1,568,606

SCHEDULES OF INVESTMENTS 101

Schedule of Investments (Continued)

iSHARES^® RUSSELL MIDCAP INDEX FUND

March 31, 2004

Security	Shares	Value
Loews Corp.	26,493	$	1,564,677
Clorox Co.	31,785		1,554,604
Albertson’s Inc.	69,363		1,536,390
General Growth Properties Inc.	43,662		1,534,719
CIT Group Inc.	40,328		1,534,480
Eastman Kodak Co.	58,332		1,526,548
Coach Inc.1	36,989		1,516,179
Synovus Financial Corp.	61,817		1,511,426
Hershey Foods Corp.	18,034		1,494,117
Sprint Corp. (PCS Group)1	159,847		1,470,592
Computer Sciences Corp.1	36,332		1,465,270
Cinergy Corp.	35,830		1,465,089
AON Corp.	51,865		1,447,552
Xcel Energy Inc.	81,130		1,444,925
ITT Industries Inc.	18,707		1,427,905
American Standard Companies Inc.1	12,526		1,424,832
Avaya Inc.1	89,282		1,417,798
Edison International	57,907		1,406,561
DTE Energy Co.	34,175		1,406,301
Avery Dennison Corp.	22,490		1,399,103
Phelps Dodge Corp.1	17,011		1,389,118
Centex Corp.	25,133		1,358,690
Parker Hannifin Corp.	24,032		1,357,808
Constellation Energy Group Inc.	33,636		1,343,758
Fiserv Inc.1	37,141		1,328,534
Network Appliance Inc.1	61,709		1,323,658
CSX Corp.	43,628		1,321,492
Sovereign Bancorp Inc.	61,410		1,315,402
BJ Services Co.1	30,158		1,304,937
Interpublic Group of Companies Inc.1	84,386		1,297,857
Sempra Energy	40,748		1,295,786
Newell Rubbermaid Inc.	55,811		1,294,815
Rohm & Haas Co.	32,283		1,286,155
D.R. Horton Inc.	36,230		1,283,629
New York Times Co. Class A	29,003		1,281,933
North Fork Bancorp Inc.	30,167		1,276,667
Lennar Corp. Class A	23,549		1,272,352
Torchmark Corp.	23,627		1,270,896
Mylan Laboratories Inc.	55,317		1,257,355
Textron Inc.	23,367		1,241,956
Ambac Financial Group Inc.	16,775		1,237,659
Donnelley (R.R.) & Sons Co.	40,782		1,233,655
PeopleSoft Inc.1	66,645		1,232,266
UST Inc.	34,030		1,228,483
AmerisourceBergen Corp.	22,464		1,228,332
Quest Diagnostics Inc.	14,815		1,227,126
First Tennessee National Corp.	25,689		1,225,365
Freeport-McMoRan Copper & Gold Inc.	31,340		1,225,081
Harrah’s Entertainment Inc.	22,309		1,224,541
KeySpan Corp.	32,014		1,223,575
Legg Mason Inc.	13,174		1,222,284
Knight Ridder Inc.	16,625		1,217,781
Kinder Morgan Inc.	19,304		1,216,538
Plum Creek Timber Co. Inc.	37,213		1,208,678
Fidelity National Financial Inc.	30,445		1,205,622
Cincinnati Financial Corp.	27,721		1,204,477
Qwest Communications International Inc.1	279,314		1,203,843
Varian Medical Systems Inc.1	13,892		1,199,019
National Commerce Financial Corp.	41,730		1,193,895
ProLogis	33,222		1,191,673
MedImmune Inc.1	51,300		1,184,004
Office Depot Inc.1	62,823		1,182,329
Laboratory Corp. of America Holdings1	30,120		1,182,210
Affiliated Computer Services Inc. Class A1	22,651		1,175,587
Rockwell Automation Inc.	33,770		1,170,806
Popular Inc.	26,995		1,163,485
Archstone-Smith Trust	39,423		1,163,373
Genuine Parts Co.	35,375		1,157,470
MeadWestvaco Corp.	40,766		1,153,270
IMS Health Inc.	49,455		1,150,323
Union Planters Corp.	38,365		1,145,195
Rockwell Collins Inc.	36,222		1,144,977
SAFECO Corp.	26,515		1,144,653
T. Rowe Price Group Inc.	21,255		1,144,157
Sanmina-SCI Corp.1	103,766		1,142,464
Advanced Micro Devices Inc.1	70,355		1,141,862
RadioShack Corp.	34,265		1,136,227
Health Management Associates Inc. Class A	48,852		1,133,855
NiSource Inc.	53,316		1,132,965

102 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL MIDCAP INDEX FUND

March 31, 2004

Security	Shares	Value
Banknorth Group Inc.	33,252	$	1,131,898
JDS Uniphase Corp.1	275,974		1,123,214
Dollar General Corp.	58,440		1,122,048
Hilton Hotels Corp.	68,759		1,117,334
AutoZone Inc.1	12,883		1,107,552
Microchip Technology Inc.	41,620		1,105,427
Career Education Corp.1	19,461		1,102,271
Pulte Homes Inc.	19,807		1,101,269
Ecolab Inc.	38,489		1,098,091
Family Dollar Stores Inc.	30,538		1,097,841
XTO Energy Inc.	43,288		1,092,595
Coca-Cola Enterprises Inc.	45,156		1,091,421
Cintas Corp.	24,672		1,072,985
Compass Bancshares Inc.	25,803		1,070,050
EOG Resources Inc.	23,306		1,069,512
Kerr-McGee Corp.	20,635		1,062,703
Tenet Healthcare Corp.1	95,177		1,062,175
Dean Foods Co.1	31,577		1,054,672
Vornado Realty Trust	17,371		1,050,598
Zions Bancorporation	18,339		1,048,991
Agere Systems Inc. Class B1	335,516		1,046,810
R.J. Reynolds Tobacco Holdings Inc.	17,267		1,044,654
Bard (C.R.) Inc.	10,648		1,039,671
Huntington Bancshares Inc.	46,813		1,038,780
Waters Corp.1	25,396		1,037,173
Williams Companies Inc.	105,284		1,007,568
Kimco Realty Corp.	19,669		1,002,726
Univision Communications Inc. Class A1	30,209		997,199
GreenPoint Financial Corp.	22,749		994,359
Public Storage Inc.	20,281		986,873
L-3 Communications Holdings Inc.	16,568		985,465
Sunoco Inc.	15,701		979,428
Rouse Co. (The)	18,248		978,093
Nucor Corp.	15,899		977,471
Murphy Oil Corp.	15,511		976,728
Pepsi Bottling Group Inc.	32,749		974,283
Delphi Corp.	97,634		972,435
Siebel Systems Inc.1	84,289		970,166
Novellus Systems Inc.1	30,480		968,959
Millennium Pharmaceuticals Inc.1	57,223		967,069
Sherwin-Williams Co. (The)	25,105		964,785
BEA Systems Inc.1	75,552		964,044
Whirlpool Corp.	13,977		962,596
Ross Stores Inc.	31,360		959,930
Duke Realty Corp.	27,507		955,043
Amerada Hess Corp.	14,567		950,934
McCormick & Co. Inc.	28,295		948,448
Express Scripts Inc.1	12,666		944,757
MGIC Investment Corp.	14,686		943,282
Wendy’s International Inc.	23,075		938,922
Leggett & Platt Inc.	39,522		937,067
Jabil Circuit Inc.1	31,768		934,932
El Paso Corp.	131,343		933,849
Watson Pharmaceuticals Inc.1	21,772		931,624
Thermo Electron Corp.1	32,883		929,931
BMC Software Inc.1	47,427		927,198
Scientific-Atlanta Inc.	28,532		922,725
Smith International Inc.1	17,226		921,763
Estee Lauder Companies Inc. Class A	20,765		920,720
Vulcan Materials Co.	19,400		920,336
iStar Financial Inc.	21,734		919,348
E*TRADE Financial Corp.1	68,327		912,165
NTL Inc.1	15,339		911,904
Old Republic International Corp.	36,788		903,513
Black & Decker Corp.	15,772		898,058
Teradyne Inc.1	37,585		895,651
Washington Post Company (The) Class B	1,010		893,254
Commerce Bancorp Inc.	13,516		890,434
Unisys Corp.1	62,029		885,774
Jones Apparel Group Inc.	24,416		882,638
Solectron Corp.1	159,379		881,366
Smurfit-Stone Container Corp.	50,001		879,518
ENSCO International Inc.	30,619		862,537
Sealed Air Corp.1	17,239		857,295
Tiffany & Co.	22,457		857,184
UNUMProvident Corp.	58,461		855,284
Novell Inc.1	75,080		854,410
United States Steel Corp.	22,895		853,297
Darden Restaurants Inc.	34,209		848,041

SCHEDULES OF INVESTMENTS 103

Schedule of Investments (Continued)

iSHARES^® RUSSELL MIDCAP INDEX FUND

March 31, 2004

Security	Shares	Value
Applera Corp. - Applied Biosystems Group	42,797	$	846,525
Patterson Dental Co.1	12,314		844,864
Mohawk Industries Inc.1	10,257		844,664
Republic Services Inc.	31,134		842,797
SUPERVALU Inc.	27,355		835,422
Oxford Health Plans Inc.	17,076		834,163
Boston Properties Inc.	15,344		833,333
Harman International Industries Inc.	10,446		831,502
King Pharmaceuticals Inc.1	48,910		823,644
CDW Corp.	12,132		820,245
Radian Group Inc.	19,121		814,555
Chico’s FAS Inc.1	17,544		814,042
Dun & Bradstreet Corp.1	15,205		813,467
Synopsys Inc.1	27,961		809,751
NVIDIA Corp.1	30,534		808,846
Cadence Design Systems Inc.1	54,758		807,133
Liz Claiborne Inc.	21,994		806,960
Janus Capital Group Inc.	48,985		802,374
SCANA Corp.	22,693		802,198
Chiron Corp.1	18,187		800,410
CenturyTel Inc.	29,076		799,299
Sigma-Aldrich Corp.	14,398		796,785
Molex Inc.	26,141		794,425
Host Marriott Corp.1	62,140		794,149
Manpower Inc.	17,078		794,127
Ball Corp.	11,660		790,315
Autoliv Inc.	19,237		788,717
Lear Corp.	12,723		788,317
Celgene Corp.1	16,536		787,940
SanDisk Corp.1	27,755		787,409
Expeditors International Washington Inc.	19,927		786,917
PETsMART Inc.	28,746		783,616
Omnicare Inc.	17,614		780,829
VF Corp.	16,701		779,937
Allied Capital Corp.	25,724		779,180
Whole Foods Market Inc.	10,323		773,709
American Power Conversion Corp.	33,621		773,619
Pioneer Natural Resources Co.	23,901		772,002
Nordstrom Inc.	19,340		771,666
NCR Corp.1	17,500		771,050
Sepracor Inc.1	16,027		770,899
XM Satellite Radio Holdings Inc. Class A1	27,338		765,464
Tyson Foods Inc. Class A	42,404		765,392
Wisconsin Energy Corp.	23,801		765,202
Liberty Property Trust	16,862		758,790
Caesars Entertainment Inc.1	58,113		757,794
TCF Financial Corp.	14,831		757,419
Hibernia Corp. Class A	32,102		754,076
Energy East Corp.	29,715		753,572
Citizens Communications Co.1	58,120		752,073
Sirius Satellite Radio Inc.1	220,716		750,434
Foot Locker Inc.	29,022		748,768
Brinker International Inc.1	19,726		748,207
Grainger (W.W.) Inc.	15,587		748,176
Energizer Holdings Inc.1	16,012		747,600
Equifax Inc.	28,925		746,843
Health Care Property Investors Inc.	26,321		744,884
Invitrogen Corp.1	10,183		730,019
ServiceMaster Co. (The)	60,713		729,163
Telephone & Data Systems Inc.	10,278		728,402
DST Systems Inc.1	16,060		728,321
Tellabs Inc.1	84,308		727,578
Ameritrade Holding Corp.1	47,195		726,803
AES Corp. (The)1	85,204		726,790
Toys R Us Inc.1	43,256		726,701
Citrix Systems Inc.1	33,609		726,627
Pactiv Corp.1	32,596		725,261
Dollar Tree Stores Inc.1	23,459		724,649
SPX Corp.	15,898		723,041
Autodesk Inc.	22,817		721,474
PMI Group Inc. (The)	19,291		720,712
AvalonBay Communities Inc.	13,398		717,865
Allied Waste Industries Inc.1	53,494		712,005
Mercury Interactive Corp.1	15,878		711,334
DENTSPLY International Inc.	16,008		709,635
Diebold Inc.	14,708		707,749
Robert Half International Inc.1	29,816		704,254
Hillenbrand Industries Inc.	10,339		701,915
Providian Financial Corp.1	53,554		701,557

104 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL MIDCAP INDEX FUND

March 31, 2004

Security	Shares	Value
Brunswick Corp.	17,176	$	701,296
Engelhard Corp.	23,299		696,407
Vishay Intertechnology Inc.1	32,631		696,346
Mercantile Bankshares Corp.	16,201		696,157
VeriSign Inc.1	41,661		691,156
Lam Research Corp.1	27,041		681,704
Beckman Coulter Inc.	12,480		680,659
Eastman Chemical Co.	15,873		677,460
LSI Logic Corp.1	72,376		675,992
Sabre Holdings Corp.	27,234		675,676
Goodrich (B.F.) Co.	24,020		674,241
Gentex Corp.	15,427		669,223
Pinnacle West Capital Corp.	16,875		664,031
Michaels Stores Inc.	13,530		657,829
Pepco Holdings Inc.	32,117		656,471
KB Home	8,118		655,934
Fastenal Co.	12,199		654,964
Harris Corp.	13,521		654,552
Symbol Technologies Inc.	47,188		651,194
Ashland Inc.	14,005		651,092
Barr Pharmaceuticals Inc.1	14,124		648,292
Bausch & Lomb Inc.	10,801		647,736
Fluor Corp.	16,695		645,930
Manor Care Inc.	18,270		644,748
Brown-Forman Corp. Class B	13,514		644,077
PacifiCare Health Systems Inc.1	16,210		641,106
Macerich Co. (The)	11,839		638,122
GTECH Holdings Corp.	10,772		637,056
ChoicePoint Inc.1	16,730		636,242
Abercrombie & Fitch Co. Class A	18,758		634,771
Scripps (E.W.) Co. Class A	6,278		634,769
CenterPoint Energy Inc.	55,430		633,565
IVAX Corp.1	27,706		630,866
Humana Inc.1	33,160		630,703
QLogic Corp.1	19,067		629,402
Associated Bancorp	13,989		626,567
Outback Steakhouse Inc.	12,842		625,405
Hasbro Inc.	28,607		622,202
Intersil Corp. Class A	27,910		622,114
ALLETE Inc.	17,692		620,812
Storage Technology Corp.1	22,307		620,804
Doral Financial Corp.	17,586		619,027
CarMax Inc.1	21,199		619,011
Developers Diversified Realty Corp.	15,320		618,928
Questar Corp.	16,980		618,751
Commerce Bancshares Inc.	12,708		606,299
Temple-Inland Inc.	9,555		605,214
Dana Corp.	30,449		604,717
Astoria Financial Corp.	15,885		604,107
AutoNation Inc.1	35,338		602,513
Gallagher (Arthur J.) & Co.	18,422		600,005
Edwards (A.G.) Inc.	15,336		599,944
International Rectifier Corp.1	13,034		599,434
Lamar Advertising Co.1	14,882		598,554
Pentair Inc.	10,126		597,434
CH Robinson Worldwide Inc.	14,361		595,981
Corinthian Colleges Inc.1	18,005		595,245
Avnet Inc.1	24,283		594,691
Hospitality Properties Trust	12,804		594,106
Apartment Investment & Management Co. Class A	19,074		593,011
Coventry Health Care Inc.1	13,983		591,900
Cephalon Inc.1	10,319		591,382
Henry Schein Inc.1	8,280		591,358
MGM Mirage1	13,035		591,007
Lincare Holdings Inc.1	18,801		590,727
Iron Mountain Inc.1	13,220		590,009
Red Hat Inc.1	25,730		588,188
Williams-Sonoma Inc.1	17,173		587,317
PMC-Sierra Inc.1	34,430		584,277
Patterson-UTI Energy Inc.1	16,496		584,123
Pogo Producing Co.	12,676		581,448
DaVita Inc.1	12,129		579,160
Compuware Corp.1	77,724		579,044
Network Associates Inc.1	32,063		577,134
Constellation Brands Inc.1	17,965		576,676
Alliant Energy Corp.	22,107		576,108
Comverse Technology Inc.1	31,561		572,517
Mandalay Resort Group	9,973		571,054
AMB Property Corp.	15,323		569,556
Cognizant Technology Solutions Corp.1	12,547		567,752
Chesapeake Energy Corp.	42,174		565,132

SCHEDULES OF INVESTMENTS 105

Schedule of Investments (Continued)

iSHARES^® RUSSELL MIDCAP INDEX FUND

March 31, 2004

Security	Shares	Value
Leucadia National Corp.	10,596	$	564,555
TECO Energy Inc.	38,522		563,577
Equitable Resources Inc.	12,678		563,157
Arrow Electronics Inc.1	21,966		559,254
UnionBanCal Corp.	10,606		555,648
3Com Corp.1	78,617		555,036
Precision Castparts Corp.	12,593		554,470
WebMD Corp.1	62,022		551,376
Investors Financial Services Corp.	13,337		551,085
NSTAR	10,850		550,312
Noble Energy Inc.	11,652		548,809
Alberto-Culver Co.	12,475		547,278
Catellus Development Corp.	21,037		547,172
Atmel Corp.1	84,170		547,105
Stanley Works (The)	12,708		542,377
Eaton Vance Corp.	14,210		541,685
Hudson City Bancorp Inc.	14,277		540,242
New Plan Excel Realty Trust	19,720		539,342
Apogent Technologies Inc.1	17,553		538,526
Smucker (J.M.) Co. (The)	10,157		536,086
MDU Resources Group Inc.	22,795		535,455
Valley National Bancorp	19,119		534,758
ImClone Systems Inc.1	10,484		533,216
Bank of Hawaii Corp.	11,495		532,563
Mack-Cali Realty Corp.	11,856		532,453
Belo (A.H.) Corp.	19,086		529,827
Pall Corp.	23,324		529,222
Berkley (W.R.) Corp.	13,221		527,253
Zebra Technologies Corp. Class A1	7,597		527,004
Ceridian Corp.1	26,523		522,768
Monster Worldwide Inc.1	19,930		522,166
Fisher Scientific International Inc.1	9,457		520,513
Tektronix Inc.	15,751		515,215
Health Net Inc.1	20,656		514,954
Westwood One Inc.1	17,365		511,399
Valspar Corp. (The)	10,357		509,875
Navistar International Corp.1	11,117		509,714
AmeriCredit Corp.1	29,861		508,533
Maytag Corp.	16,030		506,067
Wilmington Trust Corp.	13,489		504,084
United Dominion Realty Trust Inc.	25,660		503,449
Thornburg Mortgage Inc.	16,161		502,607
Bemis Co.	19,316		502,216
SEI Investment Co.	15,071		497,343
International Flavors & Fragrances Inc.	13,992		496,716
City National Corp.	8,291		496,631
Markel Corp.1	1,710		492,309
Rambus Inc.1	17,555		492,067
Cypress Semiconductor Corp.1	24,012		491,526
Protective Life Corp.	13,031		488,011
Fair Isaac Corp.	13,475		486,178
DPL Inc.	25,903		485,681
American Tower Corp. Class A1	42,738		485,076
Sky Financial Group Inc.	18,650		483,968
Weingarten Realty Investors	13,971		483,379
Rite Aid Corp.1	88,589		481,924
Northeast Utilities	25,830		481,730
Fulton Financial Corp.	21,623		481,544
Federated Investors Inc. Class B	15,298		480,816
ADC Telecommunications Inc.1	164,126		475,964
Millipore Corp.1	9,258		475,676
PerkinElmer Inc.	22,983		475,518
Great Plains Energy Inc.	14,070		475,425
CIENA Corp.1	95,289		473,586
Webster Financial Corp.	9,331		473,175
Rent-A-Center Inc.1	14,316		472,285
Applebee’s International Inc.	11,362		469,819
UTStarcom Inc.1	16,330		469,651
Triad Hospitals Inc.1	15,215		468,926
NVR Inc.1	1,015		466,900
Colonial BancGroup Inc. (The)	25,144		465,164
National-Oilwell Inc.1	16,414		464,188
OGE Energy Corp.	17,535		463,625
BorgWarner Inc.	5,450		462,323
JetBlue Airways Corp.1	18,277		462,225
Convergys Corp.1	30,399		462,065
Boise Cascade Corp.	13,314		461,330
Universal Health Services Inc. Class B	10,011		461,207
Martin Marietta Materials Inc.	9,982		460,769
NetScreen Technologies Inc.1	12,616		459,601
Service Corp. International1	61,327		458,113
Chelsea Property Group Inc.	7,276		457,951

106 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL MIDCAP INDEX FUND

March 31, 2004

Security	Shares	Value
Annaly Mortgage Management Inc.	23,422	$	457,900
Bowater Inc.	10,446		455,759
Fairchild Semiconductor International Inc. Class A1	18,955		455,489
Protein Design Labs Inc.1	19,120		455,438
Smithfield Foods Inc.1	16,773		454,884
Western Digital Corp.1	40,437		454,108
Ryland Group Inc.	5,101		453,122
Ryder System Inc.	11,660		451,592
Sonoco Products Co.	18,574		450,977
Tech Data Corp.1	10,990		449,931
Cullen/Frost Bankers Inc.	10,510		449,408
Amylin Pharmaceuticals Inc.1	18,947		448,854
Saks Inc.1	25,464		448,166
Reliant Resources Inc.1	54,452		447,051
Puget Energy Inc.	19,959		446,483
Hormel Foods Corp.	15,198		445,757
ONEOK Inc.	19,699		444,212
Rayonier Inc. REIT	10,151		443,700
American Capital Strategies Ltd.	13,241		440,131
HON Industries Inc.	11,813		438,971
Jacobs Engineering Group Inc.1	9,815		437,749
Viad Corp.	18,067		436,679
Cheesecake Factory (The)1	9,437		435,329
Newfield Exploration Co.1	9,082		435,300
Pier 1 Imports Inc.	18,218		431,767
Circuit City Stores Inc.	38,158		431,185
Toll Brothers Inc.1	9,490		431,131
Polycom Inc.1	20,301		430,990
Alliant Techsystems Inc.1	7,916		430,630
Cooper Cameron Corp.1	9,758		429,840
Level 3 Communications Inc.1	106,274		427,221
Krispy Kreme Doughnuts Inc.1	12,402		425,885
Reebok International Ltd.	10,276		424,913
Del Monte Foods Co.1	37,661		423,686
Pan Pacific Retail Properties Inc.	8,127		423,417
Deluxe Corp.	10,557		423,336
Rowan Companies Inc.1	19,998		421,758
Renal Care Group Inc.1	9,206		421,267
First American Corp.	13,797		419,705
HCC Insurance Holdings Inc.	12,925		417,865
Lyondell Chemical Co.	28,134		417,509
Medicis Pharmaceutical Corp. Class A	10,418		416,720
Friedman, Billings, Ramsey Group, Inc. Class A	15,406		415,808
Cabot Corp.	12,664		415,379
Donaldson Co. Inc.	15,618		414,346
Nationwide Financial Services Inc.	11,476		413,710
FirstMerit Corp.	15,868		413,361
Federal Realty Investment Trust	8,935		412,797
Cummins Inc.	7,058		412,540
Hubbell Inc. Class B	10,264		411,894
Lee Enterprises Inc.	9,114		411,771
Education Management Corp.1	12,866		409,525
Independence Community Bank Corp.	10,014		408,071
Aqua America Inc.	18,720		405,850
IndyMac Bancorp Inc.	11,177		405,613
Affymetrix Inc.1	11,959		403,616
Polaris Industries Inc.	8,875		403,280
Dow Jones & Co. Inc.	8,417		403,258
Graco Inc.	13,850		403,174
First Health Group Corp.1	18,441		403,120
HRPT Properties Trust	35,517		401,342
Edwards Lifesciences Corp.1	12,547		400,877
Advance Auto Parts Inc.1	9,850		400,599
Unitrin Inc.	9,331		400,300
Ruby Tuesday Inc.	12,434		399,753
Herman Miller Inc.	15,010		399,716
Pharmaceutical Resources Inc.1	7,026		399,498
Washington Federal Inc.	15,611		398,549
Mills Corp.	7,464		397,757
Charles River Laboratories International Inc.1	9,260		396,791
Hawaiian Electric Industries Inc.	7,652		396,680
Andrx Group1	14,564		396,141
ICOS Corp.1	10,690		396,065
ARAMARK Corp. Class B	14,384		394,265
Brown & Brown Inc.	10,170		394,189
Neiman-Marcus Group Inc. Class A	7,307		394,140
CheckFree Corp.1	13,333		392,790
Regis Corp.	8,821		392,005
RPM International Inc.	23,694		391,899

SCHEDULES OF INVESTMENTS 107

Schedule of Investments (Continued)

iSHARES^® RUSSELL MIDCAP INDEX FUND

March 31, 2004

Security	Shares	Value
CenterPoint Properties Corp.	4,748	$	391,710
Ingram Micro Inc. Class A1	21,628		391,467
CBRL Group Inc.	9,842		390,137
StanCorp Financial Group Inc.	5,892		384,453
Reynolds & Reynolds Co. (The) Class A	13,527		384,302
Certegy Inc.	10,972		384,239
Pride International Inc.1	22,501		383,867
Advanced Fibre Communications Inc.1	17,422		383,807
Snap-On Inc.	11,818		382,194
BISYS Group Inc. (The)1	22,796		382,061
Borders Group Inc.	16,089		381,953
Cablevision Systems Corp.1	16,684		381,730
IKON Office Solutions Inc.	29,706		380,237
Transatlantic Holdings Inc.	4,353		379,625
Neurocrine Biosciences Inc.1	6,422		379,540
Foundry Networks Inc.1	22,104		379,526
Vectren Corp.	15,363		379,005
Harsco Corp.	8,279		376,694
AGL Resources Inc.	12,891		374,097
Waddell & Reed Financial Inc. Class A	15,210		372,949
Respironics Inc.1	6,899		372,684
Calpine Corp.1	79,466		371,106
Arden Realty Inc.	11,476		371,019
Getty Images Inc.1	6,833		368,845
Healthcare Realty Trust Inc.	8,591		366,836
Steris Corp.1	14,154		365,173
IDEXX Laboratories Inc.1	6,413		364,707
Weight Watchers International Inc.1	8,611		363,987
Corporate Executive Board Co. (The)	7,736		363,592
Coors (Adolf) Company Class B	5,219		362,460
CarrAmerica Realty Corp.	10,611		359,713
Emulex Corp.1	16,882		359,418
Shurgard Storage Centers Inc. Class A	8,995		358,901
Applied Micro Circuits Corp.1	62,046		356,764
WPS Resources Corp.	7,442		355,728
Carlisle Companies Inc.	6,271		355,252
Realty Income Corp.	7,938		354,432
DeVry Inc.1	11,706		352,936
Entercom Communications Corp.1	7,753		350,978
Crane Co.	10,612		350,196
BRE Properties Inc. Class A	10,177		349,275
Hudson United Bancorp	9,170		348,918
Teleflex Inc.	7,064		347,761
Station Casinos Inc.	7,853		346,867
Brocade Communications Systems Inc.1	52,081		346,859
Provident Financial Group Inc.	8,587		344,854
Whitney Holding Corp.	8,234		343,687
Stericycle Inc.1	7,179		343,587
BancorpSouth Inc.	15,677		343,013
Big Lots Inc.1	23,641		342,794
Westamerica Bancorp	6,792		342,724
Claire’s Stores Inc.	16,367		341,088
CNF Inc.	10,095		339,192
O’Reilly Automotive Inc.1	8,460		338,738
Valeant Pharmaceuticals International	14,147		337,689
National Fuel Gas Co.	13,545		333,207
Meredith Corp.	6,585		332,938
Varco International Inc.1	18,465		332,555
BearingPoint Inc.1	30,952		331,805
Lubrizol Corp.	10,525		331,432
UGI Corp.	10,053		330,945
Human Genome Sciences Inc.1	26,391		330,679
Cree Inc.1	14,792		329,862
First Midwest Bancorp Inc.	9,594		327,539
Maxtor Corp.1	40,100		326,815
Tidewater Inc.	11,615		326,730
Peoples Energy Corp.	7,312		326,481
FMC Technologies Inc.1	11,992		324,144
Silicon Laboratories Inc.1	6,120		323,626
Performance Food Group Co.1	9,335		320,657
Forest City Enterprises Inc. Class A	5,930		319,330
Integrated Device Technology Inc.1	21,153		317,295
Nicor Inc.	8,989		316,682
Church & Dwight Co. Inc.	7,302		316,250
Avocent Corp.1	8,593		316,136
Grant Prideco Inc.1	20,267		314,138
Mettler Toledo International Inc.1	7,040		312,576
Camden Property Trust	6,943		312,088
Hunt (J.B.) Transport Services Inc.1	11,032		310,771
Piedmont Natural Gas Co.	7,356		310,570
AMETEK Inc.	12,098		310,193
Integrated Circuit Systems Inc.1	12,373		309,696

108 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL MIDCAP INDEX FUND

March 31, 2004

Security	Shares	Value
Old National Bancorp	13,678	$	309,123
Apria Healthcare Group Inc.1	10,318		308,921
Owens-Illinois Inc.1	22,010		308,580
ResMed Inc.1	6,791		306,885
Furniture Brands International Inc.	9,529		306,834
Jefferies Group Inc.	8,620		304,545
AGCO Corp.1	14,666		303,733
Radio One Inc. Class D1	16,354		302,549
WGL Holdings Inc.	9,964		299,916
Duquesne Light Holdings Inc.	15,352		299,364
Raymond James Financial Inc.	11,983		297,778
Peabody Energy Corp.	6,402		297,757
MONY Group Inc. (The)1	9,440		296,794
Polo Ralph Lauren Corp.	8,642		296,248
International Speedway Corp. Class A	6,283		295,301
Pixar Inc.1	4,572		294,711
Helmerich & Payne Inc.	10,277		294,436
National Instruments Corp.	9,346		294,025
Acxiom Corp.	13,336		292,859
Wiley (John) & Sons Inc. Class A	9,783		292,805
Key Energy Services Inc.1	26,538		291,918
Pharmaceutical Product Development Inc.1	9,784		291,465
First Bancorp	6,969		289,910
Trustmark Corp.	9,954		289,661
Trizec Properties Inc.	16,787		287,897
Barnes & Noble Inc.1	8,796		286,750
International Bancshares Corp.	5,371		283,750
Community Health Systems Inc.1	10,187		283,504
Crescent Real Estate Equities Co.	15,773		283,441
Hovnanian Enterprises Inc. Class A1	6,514		281,079
Amkor Technology Inc.1	19,207		280,998
Cytec Industries Inc.	7,899		280,967
Macromedia Inc.1	13,891		278,792
Scotts Co. (The) Class A1	4,345		278,732
Gemstar-TV Guide International Inc.1	41,508		278,519
Harte-Hanks Inc.	11,863		277,831
Imation Corp.	7,291		274,287
Metro-Goldwyn-Mayer Inc.1	15,741		273,893
Ethan Allen Interiors Inc.	6,615		272,935
M.D.C. Holdings Inc.	3,871		272,511
Packaging Corporation of America	11,998		270,675
St. Joe Company (The)	6,624		269,531
ITT Educational Services Inc.1	8,625		269,100
University of Phoenix Online1	3,088		268,718
Lafarge North America Inc.	6,579		267,436
Park National Corp.	2,352		266,482
AptarGroup Inc.	6,938		266,419
Henry (Jack) & Associates Inc.	13,829		266,347
Worthington Industries Inc.	13,828		265,083
Florida Rock Industries Inc.	6,250		263,438
Mercury General Corp.	5,262		262,732
CBL & Associates Properties Inc.	4,262		261,431
Airgas Inc.	12,174		259,306
Erie Indemnity Co. Class A	5,370		259,156
McClatchy Co. (The) Class A	3,576		254,039
Global Payments Inc.	5,611		252,944
ArvinMeritor Inc.	12,686		251,563
Valassis Communications Inc.1	8,237		250,405
Regency Centers Corp.	5,356		250,286
ADTRAN Inc.	8,333		250,240
Diamond Offshore Drilling Inc.	10,254		248,044
PepsiAmericas Inc.	12,112		247,327
DoubleClick Inc.1	21,663		243,709
People’s Bank	5,211		242,259
Cousins Properties Inc.	7,110		233,137
Amphenol Corp. Class A1	7,816		232,135
United Bancshares Inc.	7,571		230,916
La-Z-Boy Inc.	10,567		229,938
BlackRock Inc.	3,751		229,449
Loews Corporation - Carolina Group	8,234		225,200
Media General Inc. Class A	3,340		224,715
Lancaster Colony Corp.	5,560		224,624
Downey Financial Corp.	4,241		224,349
Readers Digest Association Inc. (The)	15,898		223,844
Dynegy Inc. Class A1	56,244		222,726
IDT Corp.1	11,153		221,610
Timberland Co. Class A1	3,724		221,392
Timken Co. (The)	9,445		219,407
American Financial Group Inc.	7,306		217,938
Blyth Inc.	6,622		216,341
UnitedGlobalCom Inc. Class A1	25,448		216,054

SCHEDULES OF INVESTMENTS 109

Schedule of Investments (Continued)

iSHARES^® RUSSELL MIDCAP INDEX FUND

March 31, 2004

Security	Shares	Value
Crown Castle International Corp.1	17,067	$	215,556
American Axle & Manufacturing Holdings Inc.1	5,783		213,104
Premcor Inc.1	6,806		210,782
Westport Resources Corp.1	6,389		210,773
LNR Property Corp.	3,864		206,840
FNB Corp. (Florida)	9,338		206,370
Reinsurance Group of America Inc.	4,932		202,064
InterDigital Communications Corp.1	11,473		200,548
Bio-Rad Laboratories Inc. Class A1	3,537		199,381
Nextel Partners Inc. Class A1	15,706		198,838
Wynn Resorts Ltd.1	5,617		196,595
99 Cents Only Stores1	7,977		194,798
Marvel Enterprises Inc.1	10,113		194,068
American National Insurance Co.	2,130		190,614
Tootsie Roll Industries Inc.	5,197		189,987
Werner Enterprises Inc.	9,679		183,417
Western Gas Resources Inc.	3,594		182,755
Instinet Group Inc.1	25,356		178,760
AVX Corp.	10,771		177,614
Delta Air Lines Inc.	22,323		176,798
American Pharmaceutical Partners Inc.1	3,713		174,288
Talbots Inc. (The)	4,858		173,819
Alleghany Corp.1	700		173,001
Swift Transportation Co. Inc.1	9,989		171,511
WellChoice Inc.1	4,577		168,891
Hearst-Argyle Television Inc.	6,234		167,632
FactSet Research Systems Inc.	3,933		167,388
Endo Pharmaceuticals Holdings Inc.1	6,777		165,494
First National Bankshares of Florida	9,338		164,069
Eon Labs Inc.1	2,390		160,321
Scholastic Corp.1	5,876		160,121
Total System Services Inc.	7,482		157,646
United Defense Industries Inc.1	4,926		156,598
Capitol Federal Financial	4,262		153,006
Columbia Sportswear Co.1	2,715		150,520
McDATA Corp. Class A1	21,108		148,600
Cox Radio Inc. Class A1	6,896		146,885
PanAmSat Corp.1	5,939		145,387
BOK Financial Corp.1	3,518		144,238
MSC Industrial Direct Co. Inc. Class A	4,441		133,008
Interactive Data Corp.1	7,477		132,941
CONSOL Energy Inc.	4,923		131,936
Winn-Dixie Stores Inc.	17,046		129,550
Blockbuster Inc.	7,391		129,342
Regal Entertainment Group Class A	5,875		129,133
Student Loan Corp.	830		128,658
CNA Financial Corp.1	4,434		122,201
United States Cellular Corp.1	3,068		118,578
LaBranche & Co. Inc.	10,524		117,974
Southern Peru Copper Corp.	2,880		116,496
Wesco Financial Corp.	300		116,100
Hewitt Associates Inc. Class A1	3,564		114,084
Steelcase Inc. Class A	8,575		111,475
Texas Genco Holdings Inc.	3,022		108,037
Nuveen Investments Inc. Class A	3,746		104,364
Alliance Data Systems Corp.1	2,996		100,516
RealNetworks Inc.1	16,570		99,420
West Corp.1	3,883		96,687
Chicago Mercantile Exchange Holdings Inc.	990		95,773
Entravision Communications Corp.1	9,281		83,251
LeapFrog Enterprises Inc.1	3,740		72,369
Odyssey Re Holdings Corp.	2,524		68,148
MEMC Electronics Materials Inc.1	4,441		40,635
TOTAL COMMON STOCKS (Cost: $536,637,021)			592,824,040
SHORT-TERM INVESTMENTS – 14.97%
MONEY MARKET FUNDS – 5.83%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares2,3	24,336,030		24,336,030
Barclays Global Investors Funds Prime Money Market Fund, Institutional Shares2,3	8,028,164		8,028,164
BlackRock Temp Cash Money Market Fund2	375,781		375,781
Short-Term Investment Co. - Liquid Assets Money Market Portfolio2	1,871,338		1,871,338
			34,611,313

110 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL MIDCAP INDEX FUND

March 31, 2004

Security	Principal		Value
FLOATING RATE NOTES – 2.99%
Beta Finance Inc.
1.05%, 05/20/042,4	$	364,917	$	364,909
1.05%, 09/15/042,4		729,833		729,800
1.06%, 10/12/042,4		364,917		364,897
1.14%, 08/23/042,4		364,917		365,039
CC USA Inc.
1.05%, 04/19/042,4		321,127		321,126
1.06%, 05/24/042,4		729,833		729,823
1.09%, 07/15/042,4		364,917		364,954
1.51%, 02/15/052,4		474,392		475,052
Dorada Finance Inc.
1.04%, 07/01/042		255,442		254,770
1.05%, 05/20/042,4		729,833		729,818
1.24%, 08/09/042		182,458		182,449
1.48%, 01/18/052,4		547,375		547,353
Five Finance Inc.
1.06%, 04/15/042,4		364,917		364,917
HBOS Treasury Services PLC
1.10%, 04/22/052		729,833		729,834
Holmes Financing PLC
1.05%, 04/15/042		72,983		72,983
K2 USA LLC
1.05%, 08/16/042,4		182,458		182,448
1.05%, 09/27/042,4		788,220		788,162
1.06%, 04/13/042		364,917		364,916
1.06%, 05/17/042		364,917		364,914
1.46%, 01/12/052,4		364,917		364,888
Links Finance LLC
1.05%, 06/28/042		364,917		364,899
1.06%, 05/04/042		364,917		364,915
1.06%, 07/20/042		291,933		291,916
Nationwide Building Society
1.09%, 07/23/042,4		547,375		547,375
1.11%, 12/28/042,4		729,833		729,834
Northern Rock PLC
1.11%, 01/13/052,4		693,341		693,341
Permanent Financing PLC
1.04%, 03/10/052		729,833		729,834
1.05%, 12/10/042		364,917		364,917
Sigma Finance Inc.
1.05%, 07/01/042		364,917		364,894
1.06%, 07/20/042		364,917		364,895
1.09%, 10/07/042		729,833		729,758
1.24%, 08/06/042		182,458		182,452
Tango Finance Corp.
1.05%, 01/18/052,4		321,127		321,101
1.06%, 07/15/042,4		218,950		218,929
1.07%, 02/25/052,4		408,707		408,633
1.10%, 07/06/042,4		218,950		218,944
WhistleJacket Capital LLC
1.05%, 09/15/042,4		364,917		364,883
1.32%, 02/04/052,4		182,458		182,427
White Pine Finance LLC
1.04%, 08/26/042,4		364,917		364,894
1.05%, 11/15/042,4		437,900		437,900
1.06%, 04/20/042,4		364,917		364,917
1.06%, 07/06/042,4		437,900		437,889
				17,712,599
COMMERCIAL PAPER – 2.76%
Alpine Securitization Corp.
1.03%, 04/14/042		343,022		342,894
1.03%, 04/20/042		364,917		364,718
1.03%, 04/23/042		430,602		430,330
1.03%, 04/26/042		364,917		364,656
Amsterdam Funding Corp.
1.03%, 05/05/042		295,582		295,295
Barton Capital Corp.
1.03%, 04/02/042		380,309		380,298
Blue Ridge Asset Funding Corp.
1.02%, 04/23/042		218,950		218,813
1.03%, 05/21/042		364,917		364,395
Corporate Asset Funding
1.05%, 05/21/042		379,513		378,962
Corporate Receivables Corp.
1.03%, 04/07/042		364,917		364,854
1.04%, 06/03/042		729,833		728,505
Delaware Funding Corp.
1.03%, 04/02/042		364,917		364,906
1.03%, 05/05/042		547,981		547,448
1.03%, 05/21/042		182,458		182,197

SCHEDULES OF INVESTMENTS 111

Schedule of Investments (Continued)

iSHARES^® RUSSELL MIDCAP INDEX FUND

March 31, 2004

Security	Principal		Value
Edison Asset Securitization
1.07%, 09/21/042	$	364,917	$	363,040
Eureka Securitization Inc.
1.03%, 05/25/042		145,967		145,742
1.04%, 04/14/042		437,900		437,736
Falcon Asset Securitization
1.03%, 04/15/042		438,579		438,403
1.03%, 04/22/042		430,602		430,343
1.03%, 04/30/042		364,917		364,614
Galaxy Funding Inc.
1.05%, 05/17/042		364,917		364,429
Gemini Securitization Corp.
1.03%, 04/20/042		219,096		218,977
1.03%, 04/23/042		421,749		421,483
1.03%, 04/30/042		255,755		255,544
1.03%, 05/24/042		182,458		182,182
1.04%, 04/19/042		182,458		182,363
GIRO Funding US Corp.
1.05%, 05/19/042		182,458		182,203
Jupiter Securitization Corp.
1.03%, 04/16/042		729,833		729,520
1.03%, 04/19/042		985,275		984,767
1.03%, 04/28/042		437,900		437,562
1.03%, 04/30/042		621,635		621,120
Liberty Street Funding Corp.
1.04%, 04/08/042		255,704		255,653
1.05%, 04/05/042		295,582		295,548
Polonius Inc.
1.04%, 05/21/042		422,208		421,599
Preferred Receivables Funding Corp.
1.03%, 04/19/042		766,325		765,930
1.04%, 04/23/042		839,308		838,775
1.04%, 05/20/042		182,458		182,200
Receivables Capital Corp.
1.04%, 04/14/042		321,127		321,006
Scaldis Capital LLC
1.05%, 06/30/042		261,280		260,594
Thames Asset Global Securitization No. 1 Inc.
1.03%, 04/19/042		364,917		364,729
Thunder Bay Funding Inc.
1.03%, 04/19/042		232,123		232,004
1.04%, 04/29/042		328,717		328,451
				16,354,788
TIME DEPOSITS – 2.35%
Abbey National Treasury Services PLC
1.08%, 04/01/042		2,554,416		2,554,416
1.33%, 02/10/052		364,917		364,869
1.39%, 02/02/052		364,917		364,871
1.40%, 10/25/042		729,760		729,760
Bank of New York
1.39%, 11/01/042		729,833		729,790
Bank of Nova Scotia
1.24%, 10/07/042		547,375		547,346
1.42%, 10/29/042		547,375		547,399
Canadian Imperial Bank of Commerce
1.24%, 10/07/042		547,375		547,332
1.38%, 11/22/042		182,458		182,467
1.40%, 10/29/042		729,833		729,823
National City Bank (Cleveland, Ohio)
1.02%, 04/01/042		1,094,750		1,094,750
Toronto-Dominion Bank
1.04%, 06/22/042		182,458		182,458
1.22%, 03/23/052		1,277,208		1,276,990
1.34%, 02/10/052		291,933		291,895
1.41%, 11/01/042		547,375		547,343
UBS Finance (Delaware)
1.06%, 04/01/042		1,459,666		1,459,667
1.10%, 09/08/042		729,833		726,265
1.11%, 12/17/042		1,094,750		1,085,974
				13,963,415
REPURCHASE AGREEMENTS – 0.74%
Bank of America, NA
1.06%, 04/01/042		1,459,666		1,459,667
Goldman, Sachs & Co.
1.08%, 04/01/042		2,919,332		2,919,332
				4,378,999

112 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL MIDCAP INDEX FUND

March 31, 2004

Security	Principal		Value
U.S. GOVERNMENT AGENCY NOTES – 0.30%
Federal Home Loan Mortgage Corporation
1.15%, 05/12/042	$	547,375	$	546,658
1.28%, 08/19/042		291,933		290,480
Federal National Mortgage Association
1.28%, 08/20/042		948,783		944,026
				1,781,164
TOTAL SHORT-TERM INVESTMENTS (Cost: $88,802,278)				88,802,278
TOTAL INVESTMENTS IN SECURITIES – 114.91% (Cost $625,439,299)				681,626,318
Other Assets, Less Liabilities – (14.91%)				(88,427,437	)
NET ASSETS – 100.00%			$	593,198,881

¹ Non-income earning securities.

² All or a portion of this security represents investments of securities lending collateral.

³ Issuer is an affiliate of the Fund’s investment advisor. See Note 2.

⁴ Security exempt from registration under Rule 144A of the Securities Act of 1933.

These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 113

Schedule of Investments

iSHARES^® RUSSELL MIDCAP GROWTH INDEX FUND

March 31, 2004

Security	Shares	Value
COMMON STOCKS – 99.98%
Zimmer Holdings Inc.1	103,081	$	7,605,316
Biogen Idec Inc.1	124,926		6,945,886
International Game Technology Inc.	145,710		6,551,122
Starbucks Corp.1	166,560		6,287,640
Symantec Corp.1	132,739		6,145,816
Caremark Rx Inc.1	171,074		5,688,206
Staples Inc.1	212,811		5,403,271
TJX Companies Inc.	219,011		5,378,910
Electronic Arts Inc.1	95,815		5,170,177
Yum! Brands Inc.1	124,717		4,737,999
Allergan Inc.	55,532		4,673,573
Lexmark International Inc.1	50,177		4,616,284
Biomet Inc.	110,002		4,219,677
KLA-Tencor Corp.1	81,141		4,085,449
Adobe Systems Inc.	98,848		3,897,577
Block (H & R) Inc.	76,361		3,896,702
Moody’s Corp.	53,044		3,755,515
Juniper Networks Inc.1	142,440		3,704,864
Broadcom Corp. Class A1	92,678		3,630,197
Intuit Inc.1	78,553		3,525,459
Mattel Inc.	187,832		3,463,622
Altera Corp.1	163,567		3,344,945
Corning Inc.1	291,736		3,261,608
Coach Inc.1	77,599		3,180,783
SunGard Data Systems Inc.1	112,625		3,085,925
Sprint Corp. (PCS Group)1	334,028		3,073,058
American Standard Companies Inc.1	26,170		2,976,837
National Semiconductor Corp.1	66,100		2,936,823
Synovus Financial Corp.	118,160		2,889,012
Pitney Bowes Inc.	67,342		2,869,443
ITT Industries Inc.	36,857		2,813,295
Fiserv Inc.1	77,993		2,789,810
Network Appliance Inc.1	129,020		2,767,479
BJ Services Co.1	63,339		2,740,679
Mylan Laboratories Inc.	116,100		2,638,953
Quest Diagnostics Inc.	31,096		2,575,682
Freeport-McMoRan Copper & Gold Inc.	65,848		2,573,998
Avery Dennison Corp.	40,965		2,548,433
Varian Medical Systems Inc.1	29,169		2,517,576
MedImmune Inc.1	107,690		2,485,485
IMS Health Inc.	103,837		2,415,249
RadioShack Corp.	71,949		2,385,829
Health Management Associates Inc. Class A	101,974		2,366,817
JDS Uniphase Corp.1	577,480		2,350,344
Dollar General Corp.	121,984		2,342,093
AutoZone Inc.1	26,956		2,317,407
Career Education Corp.1	40,887		2,315,840
Microchip Technology Inc.	86,918		2,308,542
Family Dollar Stores Inc.	64,160		2,306,552
Ecolab Inc.	80,840		2,306,365
Laboratory Corp. of America Holdings1	58,246		2,286,156
EOG Resources Inc.	48,952		2,246,407
Cintas Corp.	51,489		2,239,257
Agere Systems Inc. Class B1	700,242		2,184,755
Legg Mason Inc.	23,525		2,182,650
Waters Corp.1	53,089		2,168,155
Affiliated Computer Services Inc. Class A1	41,621		2,160,130
Aetna Inc.	24,026		2,155,613
Kinder Morgan Inc.	32,785		2,066,111
Marriott International Inc. Class A	47,912		2,038,656
Ross Stores Inc.	65,893		2,016,985
McKesson Corp.	66,924		2,013,743
BEA Systems Inc.1	157,696		2,012,201
Express Scripts Inc.1	26,419		1,970,593
Bard (C.R.) Inc.	19,926		1,945,575
Univision Communications Inc. Class A1	58,935		1,945,444
Black & Decker Corp.	33,155		1,887,846
Teradyne Inc.1	79,016		1,882,951
New York Community Bancorp Inc.	54,818		1,879,161
Clorox Co.	36,901		1,804,828
Estee Lauder Companies Inc. Class A	40,677		1,803,618
Tiffany & Co.	47,217		1,802,273
Sealed Air Corp.1	36,064		1,793,463
Patterson Dental Co.1	25,891		1,776,382
BMC Software Inc.1	90,510		1,769,470
Micron Technology Inc.1	105,087		1,756,004
Newell Rubbermaid Inc.	75,332		1,747,702
Harman International Industries Inc.	21,927		1,745,389

114 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL MIDCAP GROWTH INDEX FUND

March 31, 2004

Security	Shares	Value
Jabil Circuit Inc.1	59,296	$	1,745,081
Hershey Foods Corp.	21,037		1,742,915
New York Times Co. Class A	39,389		1,740,994
Oxford Health Plans Inc.	35,600		1,739,060
CDW Corp.	25,302		1,710,668
Pepsi Bottling Group Inc.	57,379		1,707,025
Synopsys Inc.1	58,798		1,702,790
Dun & Bradstreet Corp.1	31,813		1,701,996
NVIDIA Corp.1	64,241		1,701,744
Chico’s FAS Inc.1	36,639		1,700,050
T. Rowe Price Group Inc.	31,520		1,696,722
Chiron Corp.1	38,234		1,682,678
Commerce Bancorp Inc.	25,373		1,671,573
SanDisk Corp.1	58,386		1,656,411
Novellus Systems Inc.1	52,077		1,655,528
Celgene Corp.1	34,516		1,644,687
Expeditors International Washington Inc.	41,645		1,644,561
PETsMART Inc.	60,303		1,643,860
Whole Foods Market Inc.	21,716		1,627,614
Harrah’s Entertainment Inc.	29,339		1,610,418
Sepracor Inc.1	33,447		1,608,801
Brinker International Inc.1	41,491		1,573,754
Praxair Inc.	42,208		1,566,761
Smith International Inc.1	28,822		1,542,265
Citrix Systems Inc.1	70,642		1,527,280
AES Corp. (The)1	178,835		1,525,463
Ameritrade Holding Corp.1	98,764		1,520,966
Dollar Tree Stores Inc.1	48,852		1,509,038
Applera Corp. - Applied Biosystems Group	75,717		1,497,682
DENTSPLY International Inc.	33,610		1,489,931
Robert Half International Inc.1	62,745		1,482,037
Mercury Interactive Corp.1	33,058		1,480,998
Molex Inc.	48,623		1,477,653
Darden Restaurants Inc.	58,765		1,456,784
Lam Research Corp.1	56,913		1,434,777
Beckman Coulter Inc.	26,059		1,421,258
Gentex Corp.	32,487		1,409,286
Ball Corp.	20,646		1,399,386
DST Systems Inc.1	30,684		1,391,519
Unisys Corp.1	96,718		1,381,133
Fastenal Co.	25,553		1,371,941
Barr Pharmaceuticals Inc.1	29,569		1,357,217
AmerisourceBergen Corp.	24,671		1,349,010
ChoicePoint Inc.1	35,110		1,335,233
Scripps (E.W.) Co. Class A	13,158		1,330,405
IVAX Corp.1	58,327		1,328,106
QLogic Corp.1	40,091		1,323,404
Abercrombie & Fitch Co. Class A	39,064		1,321,926
Phelps Dodge Corp.1	15,872		1,296,108
XTO Energy Inc.	51,351		1,296,106
Doral Financial Corp.	36,796		1,295,219
McCormick & Co. Inc.	38,610		1,294,207
CarMax Inc.1	44,124		1,288,421
Equifax Inc.	48,684		1,257,021
Gallagher (Arthur J.) & Co.	38,359		1,249,353
CH Robinson Worldwide Inc.	30,000		1,245,000
Coventry Health Care Inc.1	29,385		1,243,867
Lincare Holdings Inc.1	39,510		1,241,404
Corinthian Colleges Inc.1	37,436		1,237,634
Cephalon Inc.1	21,584		1,236,979
Iron Mountain Inc.1	27,679		1,235,314
PMC-Sierra Inc.1	72,198		1,225,200
Red Hat Inc.1	53,579		1,224,816
Williams-Sonoma Inc.1	35,717		1,221,521
DaVita Inc.1	25,520		1,218,580
Rockwell Collins Inc.	38,439		1,215,057
Patterson-UTI Energy Inc.1	34,258		1,213,076
Symbol Technologies Inc.	86,349		1,191,616
Manpower Inc.	25,626		1,191,609
Cognizant Technology Solutions Corp.1	26,306		1,190,346
GTECH Holdings Corp.	19,846		1,173,692
Siebel Systems Inc.1	100,819		1,160,427
Hilton Hotels Corp.	71,166		1,156,448
Investors Financial Services Corp.	27,789		1,148,241
Michaels Stores Inc.	23,325		1,134,062
Eaton Vance Corp.	29,545		1,126,255
ImClone Systems Inc.1	21,935		1,115,614
Fisher Scientific International Inc.1	19,939		1,097,443
Monster Worldwide Inc.1	41,691		1,092,304
Zebra Technologies Corp. Class A1	15,726		1,090,913

SCHEDULES OF INVESTMENTS 115

Schedule of Investments (Continued)

iSHARES^® RUSSELL MIDCAP GROWTH INDEX FUND

March 31, 2004

Security	Shares	Value
Westwood One Inc.1	36,481	$	1,074,365
Network Associates Inc.1	59,638		1,073,484
Sanmina-SCI Corp.1	96,984		1,067,794
Maytag Corp.	33,338		1,052,481
L-3 Communications Holdings Inc.	17,654		1,050,060
Rambus Inc.1	36,939		1,035,400
VeriSign Inc.1	62,161		1,031,251
SEI Investment Co.	31,247		1,031,151
PeopleSoft Inc.1	55,090		1,018,614
Fair Isaac Corp.	28,027		1,011,214
Millipore Corp.1	19,477		1,000,728
Federated Investors Inc. Class B	31,782		998,908
Lamar Advertising Co.1	24,661		991,865
Centex Corp.	18,312		989,947
UTStarcom Inc.1	34,397		989,258
WebMD Corp.1	110,774		984,781
NVR Inc.1	2,132		980,720
Applebee’s International Inc.	23,690		979,581
Chesapeake Energy Corp.	72,392		970,053
NetScreen Technologies Inc.1	26,611		969,439
Outback Steakhouse Inc.	19,881		968,205
Millennium Pharmaceuticals Inc.1	56,883		961,323
JetBlue Airways Corp.1	37,965		960,135
Western Digital Corp.1	84,584		949,878
E*TRADE Financial Corp.1	70,833		945,621
Amylin Pharmaceuticals Inc.1	39,538		936,655
TCF Financial Corp.	18,119		925,337
Cheesecake Factory (The)1	19,908		918,356
Pall Corp.	39,435		894,780
Universal Health Services Inc. Class B	19,213		885,143
Krispy Kreme Doughnuts Inc.1	25,764		884,736
Medicis Pharmaceutical Corp. Class A	21,967		878,680
Omnicare Inc.	19,695		873,079
Education Management Corp.1	26,920		856,864
Graco Inc.	29,339		854,044
Rent-A-Center Inc.1	25,844		852,594
Affymetrix Inc.1	25,146		848,677
Dow Jones & Co. Inc.	17,704		848,199
Polaris Industries Inc.	18,656		847,729
Advanced Micro Devices Inc.1	51,872		841,883
Pharmaceutical Resources Inc.1	14,802		841,642
Advance Auto Parts Inc.1	20,689		841,422
First Health Group Corp.1	38,316		837,588
Starwood Hotels & Resorts Worldwide Inc.	20,626		835,353
Edwards Lifesciences Corp.1	26,052		832,361
Pactiv Corp.1	37,225		828,256
Herman Miller Inc.	31,097		828,113
Charles River Laboratories International Inc.1	19,309		827,391
Ruby Tuesday Inc.	25,732		827,284
ARAMARK Corp. Class B	30,123		825,671
Solectron Corp.1	149,235		825,270
Brown & Brown Inc.	21,205		821,906
Cooper Cameron Corp.1	18,463		813,295
Certegy Inc.	23,046		807,071
Reynolds & Reynolds Co. (The) Class A	28,348		805,367
Novell Inc.1	70,232		799,240
Jacobs Engineering Group Inc.1	17,759		792,051
Foundry Networks Inc.1	46,060		790,850
Henry Schein Inc.1	10,987		784,692
Waddell & Reed Financial Inc. Class A	31,827		780,398
Respironics Inc.1	14,414		778,644
Getty Images Inc.1	14,402		777,420
IDEXX Laboratories Inc.1	13,436		764,105
Sigma-Aldrich Corp.	13,724		759,486
Corporate Executive Board Co. (The)	16,149		759,003
Weight Watchers International Inc.1	17,941		758,366
Rite Aid Corp.1	139,126		756,845
Donaldson Co. Inc.	28,422		754,036
BISYS Group Inc. (The)1	44,883		752,239
DeVry Inc.1	24,561		740,514
Autoliv Inc.	18,042		739,722
Health Net Inc.1	29,516		735,834
Station Casinos Inc.	16,567		731,764
Xerox Corp.1	49,946		727,713
Leggett & Platt Inc.	30,592		725,336
Stericycle Inc.1	15,140		724,600
North Fork Bancorp Inc.	17,111		724,138
Steris Corp.1	28,059		723,922
Popular Inc.	16,672		718,563
Pier 1 Imports Inc.	30,132		714,128

116 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL MIDCAP GROWTH INDEX FUND

March 31, 2004

Security	Shares	Value
Friedman, Billings, Ramsey Group, Inc. Class A	26,443	$	713,697
Cree Inc.1	31,306		698,124
Alliant Techsystems Inc.1	12,801		696,374
Protein Design Labs Inc.1	29,199		695,520
Cablevision Systems Corp.1	30,005		686,514
Silicon Laboratories Inc.1	12,909		682,628
FMC Technologies Inc.1	25,004		675,858
Entercom Communications Corp.1	14,768		668,547
Mettler Toledo International Inc.1	14,895		661,338
International Flavors & Fragrances Inc.	18,609		660,620
Integrated Circuit Systems Inc.1	26,152		654,585
Claire’s Stores Inc.	31,396		654,293
Apria Healthcare Group Inc.1	21,819		653,261
Mandalay Resort Group	11,363		650,645
ENSCO International Inc.	23,009		648,164
ResMed Inc.1	14,201		641,743
Andrx Group1	23,564		640,941
Dover Corp.	16,501		639,744
Navistar International Corp.1	13,596		623,377
National Instruments Corp.	19,779		622,247
Pixar Inc.1	9,591		618,236
Comverse Technology Inc.1	33,927		615,436
Grant Prideco Inc.1	39,641		614,436
Wiley (John) & Sons Inc. Class A	20,526		614,343
Allied Waste Industries Inc.1	46,146		614,203
Pharmaceutical Product Development Inc.1	20,609		613,942
International Rectifier Corp.1	13,308		612,035
Tellabs Inc.1	70,641		609,632
Providian Financial Corp.1	46,380		607,578
Cypress Semiconductor Corp.1	29,489		603,640
Ceridian Corp.1	30,446		600,091
Coca-Cola Enterprises Inc.	24,812		599,706
Amkor Technology Inc.1	40,562		593,422
Qwest Communications International Inc.1	135,433		583,716
Macromedia Inc.1	28,780		577,615
Intersil Corp. Class A	25,742		573,789
University of Phoenix Online1	6,580		572,592
Mohawk Industries Inc.1	6,898		568,050
St. Joe Company (The)	13,857		563,841
ITT Educational Services Inc.1	18,071		563,815
National-Oilwell Inc.1	19,696		557,003
Henry (Jack) & Associates Inc.	28,562		550,104
O’Reilly Automotive Inc.1	13,700		548,548
Avocent Corp.1	14,744		542,432
Emulex Corp.1	25,189		536,274
LSI Logic Corp.1	56,182		524,740
Storage Technology Corp.1	18,799		523,176
ADTRAN Inc.	17,413		522,912
Renal Care Group Inc.1	11,276		515,990
CIENA Corp.1	102,623		510,036
Atmel Corp.1	78,328		509,132
Whirlpool Corp.	7,351		506,263
Telephone & Data Systems Inc.	7,070		501,051
Harte-Hanks Inc.	21,378		500,673
SouthTrust Corp.	14,969		496,372
Global Payments Inc.	10,999		495,835
Amphenol Corp. Class A1	16,574		492,248
Hillenbrand Industries Inc.	7,221		490,234
Washington Post Company (The) Class B	554		489,963
Varco International Inc.1	27,103		488,125
International Speedway Corp. Class A	10,356		486,732
Rowan Companies Inc.1	23,067		486,483
BlackRock Inc.	7,928		484,956
King Pharmaceuticals Inc.1	28,543		480,664
CBRL Group Inc.	11,966		474,332
Church & Dwight Co. Inc.	10,717		464,153
Noble Energy Inc.	9,833		463,134
Timberland Co. Class A1	7,780		462,521
Performance Food Group Co.1	13,080		449,298
Key Energy Services Inc.1	40,812		448,932
American Tower Corp. Class A1	39,258		445,578
ADC Telecommunications Inc.1	153,011		443,732
Triad Hospitals Inc.1	14,307		440,942
Regis Corp.	9,884		439,245
Viad Corp.	18,162		438,976
Brocade Communications Systems Inc.1	65,802		438,241
Cadence Design Systems Inc.1	29,080		428,639
Hudson City Bancorp Inc.	11,323		428,462

SCHEDULES OF INVESTMENTS 117

Schedule of Investments (Continued)

iSHARES^® RUSSELL MIDCAP GROWTH INDEX FUND

March 31, 2004

Security	Shares	Value
Harris Corp.	8,809	$	426,444
Nextel Partners Inc. Class A1	33,094		418,970
Newfield Exploration Co.1	8,719		417,902
PerkinElmer Inc.	20,194		417,814
Acxiom Corp.	18,921		415,505
InterDigital Communications Corp.1	23,758		415,290
Meredith Corp.	8,209		415,047
Del Monte Foods Co.1	36,845		414,506
Bio-Rad Laboratories Inc. Class A1	7,291		410,994
Thermo Electron Corp.1	14,362		406,157
99 Cents Only Stores1	16,405		400,610
Marvel Enterprises Inc.1	20,685		396,945
Tenet Healthcare Corp.1	35,534		396,559
MGM Mirage1	8,703		394,594
Energizer Holdings Inc.1	8,439		394,017
CheckFree Corp.1	13,359		393,556
Fairchild Semiconductor International Inc. Class A1	16,371		393,395
Invitrogen Corp.1	5,462		391,571
Markel Corp.1	1,360		391,544
HON Industries Inc.	10,526		391,146
DoubleClick Inc.1	33,641		378,461
American Pharmaceutical Partners Inc.1	7,844		368,197
First Bancorp	8,760		364,416
Polycom Inc.1	16,910		358,999
Pride International Inc.1	20,867		355,991
ICOS Corp.1	9,429		349,344
HCC Insurance Holdings Inc.	10,777		348,420
FactSet Research Systems Inc.	8,169		347,673
Knight Ridder Inc.	4,727		346,253
Human Genome Sciences Inc.1	27,264		341,618
Endo Pharmaceuticals Holdings Inc.1	13,988		341,587
Neurocrine Biosciences Inc.1	5,758		340,298
Total System Services Inc.	15,990		336,909
Big Lots Inc.1	23,015		333,717
Agilent Technologies Inc.1	10,545		333,538
AmeriCredit Corp.1	19,559		333,090
Applied Micro Circuits Corp.1	57,231		329,078
United Defense Industries Inc.1	10,322		328,136
Eon Labs Inc.1	4,852		325,472
Edwards (A.G.) Inc.	8,268		323,444
Advanced Fibre Communications Inc.1	14,616		321,990
Columbia Sportswear Co.1	5,761		319,390
Lennar Corp. Class A	5,803		313,536
Talbots Inc. (The)	8,716		311,858
McDATA Corp. Class A1	43,378		305,381
Tidewater Inc.	10,760		302,679
Northern Trust Corp.	6,145		286,296
Constellation Brands Inc.1	8,862		284,470
Community Health Systems Inc.1	10,221		284,450
Chelsea Property Group Inc.	4,510		283,859
Hunt (J.B.) Transport Services Inc.1	10,072		283,728
Radio One Inc. Class D1	15,248		282,088
Wendy’s International Inc.	6,925		281,778
Valeant Pharmaceuticals International	11,644		277,942
CONSOL Energy Inc.	10,016		268,429
SPX Corp.	5,876		267,240
Integrated Device Technology Inc.1	17,804		267,060
Belo (A.H.) Corp.	9,449		262,304
AMETEK Inc.	10,202		261,579
D.R. Horton Inc.	7,267		257,470
Valley National Bancorp	9,203		257,408
Diamond Offshore Drilling Inc.	10,488		253,705
Maxtor Corp.1	31,117		253,604
Swift Transportation Co. Inc.1	14,456		248,210
Watson Pharmaceuticals Inc.1	5,756		246,299
Worthington Industries Inc.	12,671		242,903
Mills Corp.	4,514		240,551
Hewitt Associates Inc. Class A1	7,468		239,051
Arrow Electronics Inc.1	9,343		237,873
MSC Industrial Direct Co. Inc. Class A	7,701		230,645
Manor Care Inc.	6,535		230,620
Nuveen Investments Inc. Class A	8,173		227,700
Alliance Data Systems Corp.1	6,538		219,350
Hovnanian Enterprises Inc. Class A1	5,078		219,116
RealNetworks Inc.1	34,777		208,662
Tektronix Inc.	6,379		208,657
IDT Corp.1	10,323		205,118
Crown Castle International Corp.1	15,658		197,761
Chicago Mercantile Exchange Holdings Inc.	2,025		195,898
Pioneer Natural Resources Co.	5,899		190,538

118 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL MIDCAP GROWTH INDEX FUND

March 31, 2004

Security	Shares	Value
Fidelity National Financial Inc.	4,810	$	190,476
West Corp.1	7,552		188,045
Westamerica Bancorp	3,713		187,358
Cox Radio Inc. Class A1	8,549		182,094
Brown-Forman Corp. Class B	3,820		182,061
BearingPoint Inc.1	16,910		181,275
Wynn Resorts Ltd.1	5,147		180,145
Timken Co. (The)	7,690		178,639
Leucadia National Corp.	3,293		175,451
Werner Enterprises Inc.	8,936		169,337
Ambac Financial Group Inc.	2,173		160,324
Borders Group Inc.	6,671		158,370
Reebok International Ltd.	3,693		152,706
Radian Group Inc.	3,573		152,210
Interpublic Group of Companies Inc.1	9,727		149,601
LeapFrog Enterprises Inc.1	7,689		148,782
First Tennessee National Corp.	3,097		147,727
Cousins Properties Inc.	4,473		146,670
Pentair Inc.	2,336		137,824
Mercantile Bankshares Corp.	3,178		136,559
Interactive Data Corp.1	7,157		127,251
Convergys Corp.1	8,089		122,953
Delphi Corp.	11,248		112,030
Vulcan Materials Co.	2,280		108,163
Florida Rock Industries Inc.	2,519		106,176
Westport Resources Corp.1	3,174		104,710
Southern Peru Copper Corp.	2,581		104,401
Alberto-Culver Co.	2,281		100,067
Scotts Co. (The) Class A1	1,531		98,214
United States Cellular Corp.1	2,428		93,842
Barnes & Noble Inc.1	2,702		88,085
Fluor Corp.	2,177		84,228
Autodesk Inc.	2,642		83,540
MEMC Electronics Materials Inc.1	9,095		83,219
LNR Property Corp.	1,523		81,526
Bausch & Lomb Inc.	1,281		76,822
Blockbuster Inc.	4,365		76,387
Entravision Communications Corp.1	8,435		75,662
IndyMac Bancorp Inc.	2,021		73,342
LaBranche & Co. Inc.	5,995		67,204
Transatlantic Holdings Inc.	749		65,320

Security	Shares or Principal		Value
Apogent Technologies Inc.1		2,128	$	65,287
Compuware Corp.1		8,556		63,742
Valspar Corp. (The)		1,247		61,390
Hudson United Bancorp		1,580		60,119
Jefferies Group Inc.		1,683		59,460
Berkley (W.R.) Corp.		1,383		55,154
Cabot Corp.		1,551		50,873
Gemstar-TV Guide International Inc.1		7,306		49,023
UnitedGlobalCom Inc. Class A1		5,587		47,434
WellChoice Inc.1		1,273		46,974
Tootsie Roll Industries Inc.		1,237		45,238
Erie Indemnity Co. Class A		887		42,807
La-Z-Boy Inc.		1,434		31,204
Polo Ralph Lauren Corp.		890		30,509
Scholastic Corp.1		793		21,609
TOTAL COMMON STOCKS (Cost: $424,488,145)				493,266,986
SHORT-TERM INVESTMENTS – 18.19%
MONEY MARKET FUNDS – 6.90%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares2,3		23,497,860		23,497,860
Barclays Global Investors Funds Prime Money Market Fund, Institutional Shares2,3		8,253,484		8,253,484
BlackRock Temp Cash Money Market Fund2		386,328		386,328
Short-Term Investment Co. – Liquid Assets Money Market Portfolio2		1,923,859		1,923,859
				34,061,531
FLOATING RATE NOTES – 3.69%
Beta Finance Inc.
1.05%, 05/20/042,4	$	375,158		375,151
1.05%, 09/15/042,4		750,317		750,283
1.06%, 10/12/042,4		375,158		375,139
1.14%, 08/23/042,4		375,158		375,285
CC USA Inc.
1.05%, 04/19/042,4		330,139		330,139
1.06%, 05/24/042,4		750,317		750,306

SCHEDULES OF INVESTMENTS 119

Schedule of Investments (Continued)

iSHARES^® RUSSELL MIDCAP GROWTH INDEX FUND

March 31, 2004

Security	Principal		Value
1.09%, 07/15/042,4	$	375,158	$	375,197
1.51%, 02/15/052,4		487,706		488,384
Dorada Finance Inc.
1.04%, 07/01/042		262,611		261,920
1.05%, 05/20/042,4		750,317		750,302
1.24%, 08/09/042		187,579		187,569
1.48%, 01/18/052,4		562,738		562,715
Five Finance Inc.
1.06%, 04/15/042,4		375,158		375,158
HBOS Treasury Services PLC
1.10%, 04/22/052		750,317		750,317
Holmes Financing PLC
1.05%, 04/15/042		75,032		75,032
K2 USA LLC
1.05%, 08/16/042,4		187,579		187,569
1.05%, 09/27/042,4		810,342		810,283
1.06%, 04/13/042		375,158		375,158
1.06%, 05/17/042		375,158		375,156
1.46%, 01/12/052,4		375,158		375,129
Links Finance LLC
1.05%, 06/28/042		375,158		375,140
1.06%, 05/04/042		375,158		375,157
1.06%, 07/20/042		300,127		300,109
Nationwide Building Society
1.09%, 07/23/042,4		562,738		562,738
1.11%, 12/28/042,4		750,317		750,317
Northern Rock PLC
1.11%, 01/13/052,4		712,801		712,801
Permanent Financing PLC
1.04%, 03/10/052		750,317		750,317
1.05%, 12/10/042		375,158		375,158
Sigma Finance Inc.
1.05%, 07/01/042		375,158		375,135
1.06%, 07/20/042		375,158		375,136
1.09%, 10/07/042		750,317		750,239
1.24%, 08/06/042		187,579		187,573
Tango Finance Corp.
1.05%, 01/18/052,4		330,139		330,113
1.06%, 07/15/042,4		225,095		225,074
1.07%, 02/25/052,4		420,177		420,102
1.10%, 07/06/042,4		225,095		225,089
WhistleJacket Capital LLC
1.05%, 09/15/042,4		375,158		375,124
1.32%, 02/04/052,4		187,579		187,548
White Pine Finance LLC
1.04%, 08/26/042,4		375,158		375,135
1.05%, 11/15/042,4		450,190		450,190
1.06%, 04/20/042,4		375,158		375,158
1.06%, 07/06/042,4		450,190		450,179
				18,209,724
COMMERCIAL PAPER – 3.41%
Alpine Securitization Corp.
1.03%, 04/14/042		352,649		352,518
1.03%, 04/20/042		375,158		374,954
1.03%, 04/23/042		442,687		442,408
1.03%, 04/26/042		375,158		374,890
Amsterdam Funding Corp.
1.03%, 05/05/042		303,878		303,583
Barton Capital Corp.
1.03%, 04/02/042		390,983		390,971
Blue Ridge Asset Funding Corp.
1.02%, 04/23/042		225,095		224,955
1.03%, 05/21/042		375,158		374,622
Corporate Asset Funding
1.05%, 05/21/042		390,165		389,598
Corporate Receivables Corp.
1.03%, 04/07/042		375,158		375,094
1.04%, 06/03/042		750,317		748,951
Delaware Funding Corp.
1.03%, 04/02/042		375,158		375,148
1.03%, 05/05/042		563,360		562,813
1.03%, 05/21/042		187,579		187,311
Edison Asset Securitization
1.07%, 09/21/042		375,158		373,229
Eureka Securitization Inc.
1.03%, 05/25/042		150,063		149,832
1.04%, 04/14/042		450,190		450,021
Falcon Asset Securitization
1.03%, 04/15/042		450,888		450,707
1.03%, 04/22/042		442,687		442,421
1.03%, 04/30/042		375,158		374,847

120 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL MIDCAP GROWTH INDEX FUND

March 31, 2004

Security	Principal		Value
Galaxy Funding Inc.
1.05%, 05/17/042	$	375,158	$	374,657
Gemini Securitization Corp.
1.03%, 04/20/042		225,245		225,123
1.03%, 04/23/042		433,586		433,313
1.03%, 04/30/042		262,933		262,715
1.03%, 05/24/042		187,579		187,295
1.04%, 04/19/042		187,579		187,482
GIRO Funding US Corp.
1.05%, 05/19/042		187,579		187,317
Jupiter Securitization Corp.
1.03%, 04/16/042		750,317		749,995
1.03%, 04/19/042		1,012,928		1,012,406
1.03%, 04/28/042		450,190		449,842
1.03%, 04/30/042		639,082		638,552
Liberty Street Funding Corp.
1.04%, 04/08/042		262,881		262,828
1.05%, 04/05/042		303,878		303,843
Polonius Inc.
1.04%, 05/21/042		434,058		433,431
Preferred Receivables
Funding Corp.
1.03%, 04/19/042		787,833		787,428
1.04%, 04/23/042		862,864		862,316
1.04%, 05/20/042		187,579		187,314
Receivables Capital Corp.
1.04%, 04/14/042		330,139		330,015
Scaldis Capital LLC
1.05%, 06/30/042		268,613		267,908
Thames Asset Global
Securitization No. 1 Inc.
1.03%, 04/19/042		375,158		374,965
Thunder Bay Funding Inc.
1.03%, 04/19/042		238,638		238,515
1.04%, 04/29/042		337,943		337,670
				16,813,803
TIME DEPOSITS - 2.91%
Abbey National Treasury Services PLC
1.08%, 04/01/042		2,626,109		2,626,109
1.33%, 02/10/052		375,158		375,110
1.39%, 02/02/052		375,158		375,111
1.40%, 10/25/042		750,317		750,244
Bank of New York
1.39%, 11/01/042		750,317		750,273
Bank of Nova Scotia
1.24%, 10/07/042		562,738		562,708
1.42%, 10/29/042		562,738		562,762
Canadian Imperial Bank of Commerce
1.24%, 10/07/042		562,738		562,694
1.38%, 11/22/042		187,579		187,588
1.40%, 10/29/042		750,317		750,306
National City Bank (Cleveland, Ohio)
1.02%, 04/01/042		1,125,475		1,125,475
Toronto-Dominion Bank
1.04%, 06/22/042		187,579		187,579
1.22%, 03/23/052		1,313,054		1,312,830
1.34%, 02/10/052		300,127		300,088
1.41%, 11/01/042		562,738		562,705
UBS Finance (Delaware)
1.06%, 04/01/042		1,500,633		1,500,633
1.10%, 09/08/042		750,317		746,649
1.11%, 12/17/042		1,125,475		1,116,453
				14,355,317
REPURCHASE AGREEMENTS – 0.91%
Bank of America, NA
1.06%, 04/01/042		1,500,633		1,500,633
Goldman, Sachs & Co.
1.08%, 04/01/042		3,001,267		3,001,267
				4,501,900
U.S. GOVERNMENT AGENCY NOTES – 0.37%
Federal Home Loan Mortgage Corporation
1.15%, 05/12/042		562,738		562,001
1.28%, 08/19/042		300,127		298,633
Federal National Mortgage Association
1.28%, 08/20/042		975,412		970,523
				1,831,157

SCHEDULES OF INVESTMENTS 121

Schedule of Investments (Continued)

iSHARES^® RUSSELL MIDCAP GROWTH INDEX FUND

March 31, 2004

	Value
TOTAL SHORT-TERM INVESTMENTS (Cost: $89,773,432)	$	89,773,432
TOTAL INVESTMENTS IN SECURITIES – 118.17% (Cost $514,261,577)		583,040,418
Other Assets, Less Liabilities – (18.17%)		(89,660,142	)
NET ASSETS – 100.00%	$	493,380,276

¹ Non-income earning securities.

² All or a portion of this security represents investments of securities lending collateral.

³ Issuer is an affiliate of the Fund’s investment advisor. See Note 2.

⁴ Security exempt from registration under Rule 144A of the Securities Act of 1933.

These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

See notes to financial statements.

122 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® RUSSELL MIDCAP VALUE INDEX FUND

March 31, 2004

Security	Shares	Value
COMMON STOCKS – 99.93%
Lucent Technologies Inc.1	945,463	$	3,885,853
Countrywide Financial Corp.	37,474		3,593,757
Agilent Technologies Inc.1	102,074		3,228,601
Hancock (John) Financial Services Inc.	66,021		2,884,457
PG&E Corp.1	93,482		2,708,174
Johnson Controls Inc.	43,070		2,547,590
Fortune Brands Inc.	33,195		2,543,733
Public Service Enterprise Group Inc.	51,596		2,423,980
Marathon Oil Corp.	70,775		2,382,994
Federated Department Stores Inc.	42,780		2,312,259
SouthTrust Corp.	69,704		2,311,385
May Department Stores Co. (The)	65,879		2,278,096
PPG Industries Inc.	38,761		2,259,766
Apple Computer Inc.1	83,497		2,258,594
Consolidated Edison Inc.	50,996		2,248,924
Unocal Corp.	58,927		2,196,799
Monsanto Co.	59,698		2,189,126
Comerica Inc.	40,003		2,172,963
Penney (J.C.) Co. Inc. (Holding Co.)	61,959		2,154,934
Sears, Roebuck and Co.	49,622		2,131,761
PACCAR Inc.	37,628		2,116,199
TXU Corp.	73,597		2,109,290
Franklin Resources Inc.	37,508		2,088,445
Safeway Inc.1	100,796		2,074,382
Xerox Corp.1	141,966		2,068,445
MBIA Inc.	32,854		2,059,946
Limited Brands Inc.	101,350		2,027,000
Archer-Daniels-Midland Co.	118,293		1,995,603
Electronic Data Systems Corp.	103,009		1,993,224
Bear Stearns Companies Inc. (The)	22,588		1,980,516
Norfolk Southern Corp.	88,879		1,963,337
Marshall & Ilsley Corp.	51,758		1,956,970
Georgia-Pacific Corp.	57,065		1,922,520
Lincoln National Corp.	40,524		1,917,596
St. Paul Companies Inc.	47,895		1,916,279
Ameren Corp.	41,540		1,914,579
Praxair Inc.	51,564		1,914,056
Northern Trust Corp.	40,952		1,907,954
Eaton Corp.	33,950		1,907,650
CIGNA Corp.	31,964		1,886,515
AmSouth Bancorp	80,166		1,884,703
Simon Property Group Inc.	32,050		1,873,002
Equity Residential	62,137		1,854,789
Regions Financial Corp.	50,639		1,849,336
PPL Corp.	39,911		1,819,942
Charter One Financial Inc.	51,298		1,813,897
Aetna Inc.	19,967		1,791,439
Jefferson-Pilot Corp.	32,397		1,782,159
Valero Energy Corp.	29,535		1,770,919
Loews Corp.	29,679		1,752,842
General Growth Properties Inc.	48,880		1,718,132
CIT Group Inc.	45,146		1,717,805
Albertson’s Inc.	77,427		1,715,008
Eastman Kodak Co.	65,307		1,709,084
Corning Inc.1	147,786		1,652,247
Cinergy Corp.	40,139		1,641,284
Computer Sciences Corp.1	40,599		1,637,358
AON Corp.	58,066		1,620,622
Xcel Energy Inc.	90,886		1,618,680
Avaya Inc.1	100,095		1,589,509
DTE Energy Co.	38,287		1,575,510
Edison International	64,830		1,574,721
Parker Hannifin Corp.	26,923		1,521,150
Constellation Energy Group Inc.	37,682		1,505,396
Sovereign Bancorp Inc.	68,882		1,475,452
CSX Corp.	48,708		1,475,365
Dover Corp.	37,385		1,449,416
Sempra Energy	45,421		1,444,388
Rohm & Haas Co.	35,975		1,433,244
Torchmark Corp.	26,453		1,422,907
Textron Inc.	26,168		1,390,829
Donnelley (R.R.) & Sons Co.	45,695		1,382,274
UST Inc.	38,104		1,375,554
Interpublic Group of Companies Inc.1	89,328		1,373,865
KeySpan Corp.	35,848		1,370,111
Plum Creek Timber Co. Inc.	41,918		1,361,497
Cincinnati Financial Corp.	31,056		1,349,383
National Commerce Financial Corp.	46,887		1,341,437
ProLogis	37,243		1,335,906
Office Depot Inc.1	70,749		1,331,496
Starwood Hotels & Resorts Worldwide Inc.	32,466		1,314,873

SCHEDULES OF INVESTMENTS 123

Schedule of Investments (Continued)

iSHARES^® RUSSELL MIDCAP VALUE INDEX FUND

March 31, 2004

Security	Shares	Value
Rockwell Automation Inc.	37,706	$	1,307,267
D.R. Horton Inc.	36,877		1,306,552
Archstone-Smith Trust	44,177		1,303,663
Genuine Parts Co.	39,838		1,303,499
MeadWestvaco Corp.	45,917		1,298,992
First Tennessee National Corp.	27,229		1,298,823
Ambac Financial Group Inc.	17,513		1,292,109
Union Planters Corp.	42,960		1,282,356
SAFECO Corp.	29,679		1,281,242
NiSource Inc.	60,074		1,276,573
Banknorth Group Inc.	37,252		1,268,058
Lennar Corp. Class A	23,355		1,261,871
Fidelity National Financial Inc.	31,503		1,247,519
Pulte Homes Inc.	22,304		1,240,102
Compass Bancshares Inc.	28,907		1,198,773
Kerr-McGee Corp.	22,998		1,184,397
Zions Bancorporation	20,653		1,181,352
Knight Ridder Inc.	16,118		1,180,643
Dean Foods Co.1	35,266		1,177,884
Vornado Realty Trust	19,467		1,177,364
R.J. Reynolds Tobacco Holdings Inc.	19,322		1,168,981
Micron Technology Inc.1	69,661		1,164,035
Huntington Bancshares Inc.	52,382		1,162,357
Williams Companies Inc.	118,650		1,135,481
Kimco Realty Corp.	22,159		1,129,666
GreenPoint Financial Corp.	25,490		1,114,168
Public Storage Inc.	22,849		1,111,832
Nucor Corp.	17,906		1,100,861
Murphy Oil Corp.	17,475		1,100,401
Rouse Co. (The)	20,451		1,096,174
Sunoco Inc.	17,476		1,090,153
Sherwin-Williams Co. (The)	28,283		1,086,916
Duke Realty Corp.	30,854		1,071,251
Amerada Hess Corp.	16,340		1,066,675
MGIC Investment Corp.	16,552		1,063,135
Qwest Communications International Inc.1	241,713		1,041,783
North Fork Bancorp Inc.	24,584		1,040,395
Scientific-Atlanta Inc.	32,166		1,040,248
El Paso Corp.	146,099		1,038,764
Delphi Corp.	103,830		1,034,147
iStar Financial Inc.	24,361		1,030,470
Old Republic International Corp.	41,438		1,017,717
NTL Inc.1	17,071		1,014,871
New York Community Bancorp Inc.	29,475		1,010,403
Jones Apparel Group Inc.	27,530		995,209
Centex Corp.	18,375		993,352
Smurfit-Stone Container Corp.	56,231		989,103
Tenet Healthcare Corp.1	87,921		981,198
Vulcan Materials Co.	20,448		970,053
UNUMProvident Corp.	65,567		959,245
United States Steel Corp.	25,661		956,385
Republic Services Inc.	34,629		937,407
SUPERVALU Inc.	30,605		934,677
Boston Properties Inc.	17,198		934,023
Popular Inc.	21,342		919,840
Watson Pharmaceuticals Inc.1	21,466		918,530
Wendy’s International Inc.	22,297		907,265
Coca-Cola Enterprises Inc.	37,500		906,375
Liz Claiborne Inc.	24,589		902,170
Janus Capital Group Inc.	54,836		898,214
SCANA Corp.	25,388		897,466
CenturyTel Inc.	32,610		896,449
Host Marriott Corp.1	69,648		890,101
Lear Corp.	14,268		884,045
VF Corp.	18,726		874,504
American Power Conversion Corp.	37,898		872,033
Nordstrom Inc.	21,815		870,419
Allied Capital Corp.	28,625		867,051
Phelps Dodge Corp.1	10,598		865,433
NCR Corp.1	19,620		864,457
XM Satellite Radio Holdings Inc.
Class A1	30,654		858,312
Tyson Foods Inc. Class A	47,548		858,241
Wisconsin Energy Corp.	26,627		856,058
Liberty Property Trust	18,911		850,995
Caesars Entertainment Inc.1	65,045		848,187
Sirius Satellite Radio Inc.1	247,377		841,082
Energy East Corp.	33,143		840,506
Citizens Communications Co.1	64,929		840,181
Hibernia Corp. Class A	35,757		839,932
PeopleSoft Inc.1	45,239		836,469

124 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL MIDCAP VALUE INDEX FUND

March 31, 2004

Security	Shares	Value
Health Care Property Investors Inc.	29,520	$	835,416
Advanced Micro Devices Inc.1	51,387		834,011
Foot Locker Inc.	32,288		833,030
Grainger (W.W.) Inc.	17,320		831,360
Thermo Electron Corp.1	29,348		829,961
Marriott International Inc. Class A	19,450		827,597
Radian Group Inc.	19,326		823,288
Toys R Us Inc.1	48,777		819,454
ServiceMaster Co. (The)	68,082		817,665
Whirlpool Corp.	11,785		811,633
McKesson Corp.	26,946		810,805
PMI Group Inc. (The)	21,622		807,798
AvalonBay Communities Inc.	14,881		797,324
Diebold Inc.	16,545		796,145
Brunswick Corp.	19,364		790,632
Vishay Intertechnology Inc.1	36,559		780,169
Engelhard Corp.	26,092		779,890
Clorox Co.	15,851		775,272
Pioneer Natural Resources Co.	23,795		768,579
Autodesk Inc.	24,166		764,129
Goodrich (B.F.) Co.	26,988		757,553
Eastman Chemical Co.	17,717		756,162
Sabre Holdings Corp.	30,364		753,331
Hershey Foods Corp.	9,004		745,981
Pinnacle West Capital Corp.	18,925		744,699
Pitney Bowes Inc.	17,436		742,948
Washington Post Company (The) Class B	839		742,020
KB Home	9,160		740,128
Pepco Holdings Inc.	35,656		728,809
Ashland Inc.	15,535		722,222
Sanmina-SCI Corp.1	64,673		712,050
PacifiCare Health Systems Inc.1	17,982		711,188
Macerich Co. (The)	13,137		708,084
CenterPoint Energy Inc.	61,729		705,562
Mercantile Bankshares Corp.	16,325		701,485
Associated Bancorp	15,655		701,187
Humana Inc.1	36,770		699,365
Developers Diversified Realty Corp.	17,247		696,779
Hasbro Inc.	31,915		694,151
ALLETE Inc.	19,708		691,554
Questar Corp.	18,922		689,518
Bausch & Lomb Inc.	11,364		681,499
Dana Corp.	34,037		675,975
AutoNation Inc.1	39,624		675,589
Temple-Inland Inc.	10,652		674,698
Fluor Corp.	17,423		674,096
Astoria Financial Corp.	17,718		673,816
Commerce Bancshares Inc.	14,099		672,663
Cadence Design Systems Inc.1	45,564		671,613
SPX Corp.	14,749		670,785
Avnet Inc.1	27,368		670,242
King Pharmaceuticals Inc.1	39,793		670,114
Apartment Investment & Management Co. Class A	21,479		667,782
Hospitality Properties Trust	14,178		657,859
AmerisourceBergen Corp.	11,978		654,957
Leggett & Platt Inc.	27,599		654,372
Pogo Producing Co.	14,156		649,336
Alliant Energy Corp.	24,585		640,685
Mohawk Industries Inc.1	7,768		639,695
AMB Property Corp.	17,144		637,242
Equitable Resources Inc.	14,288		634,673
Hilton Hotels Corp.	38,895		632,044
Rockwell Collins Inc.	19,962		630,999
Energizer Holdings Inc.1	13,474		629,101
UnionBanCal Corp.	11,970		627,108
Brown-Forman Corp. Class B	13,136		626,062
TECO Energy Inc.	42,719		624,979
3Com Corp.1	86,960		613,938
ENSCO International Inc.	21,784		613,655
Precision Castparts Corp.	13,929		613,294
Invitrogen Corp.1	8,553		613,165
NSTAR	12,062		611,785
New Plan Excel Realty Trust	22,304		610,014
Compuware Corp.1	81,764		609,142
Stanley Works (The)	14,241		607,806
Catellus Development Corp.	23,322		606,605
Manor Care Inc.	17,031		601,024
Smucker (J.M.) Co. (The)	11,381		600,689
MDU Resources Group Inc.	25,483		598,596
Bank of Hawaii Corp.	12,851		595,387

SCHEDULES OF INVESTMENTS 125

Schedule of Investments (Continued)

iSHARES^® RUSSELL MIDCAP VALUE INDEX FUND

March 31, 2004

Security	Shares	Value
Mack-Cali Realty Corp.	13,189	$	592,318
Weingarten Realty Investors	17,048		589,844
Pentair Inc.	9,936		586,224
Millennium Pharmaceuticals Inc.1	33,890		572,741
Apogent Technologies Inc.1	18,533		568,592
United Dominion Realty Trust Inc.	28,772		564,507
Alberto-Culver Co.	12,811		562,019
Wilmington Trust Corp.	14,933		558,046
Berkley (W.R.) Corp.	13,978		557,443
Thornburg Mortgage Inc.	17,865		555,602
Bemis Co.	21,334		554,684
City National Corp.	9,221		552,338
Solectron Corp.1	99,309		549,179
Sky Financial Group Inc.	21,047		546,170
Protective Life Corp.	14,502		543,100
Telephone & Data Systems Inc.	7,656		542,581
L-3 Communications Holdings Inc.	9,066		539,246
DPL Inc.	28,746		538,987
Northeast Utilities	28,778		536,710
Fulton Financial Corp.	23,991		534,280
Valspar Corp. (The)	10,832		533,259
Leucadia National Corp.	10,000		532,800
Novell Inc.1	46,799		532,573
Great Plains Energy Inc.	15,723		531,280
XTO Energy Inc.	20,980		529,542
Webster Financial Corp.	10,356		525,153
Colonial BancGroup Inc. (The)	28,296		523,476
Hillenbrand Industries Inc.	7,684		521,667
E*TRADE Financial Corp.1	38,981		520,396
Newell Rubbermaid Inc.	22,228		515,690
OGE Energy Corp.	19,488		515,263
BorgWarner Inc.	6,068		514,748
Harrah’s Entertainment Inc.	9,362		513,880
Boise Cascade Corp.	14,814		513,305
Martin Marietta Materials Inc.	11,107		512,699
Ryder System Inc.	13,213		511,739
Bowater Inc.	11,708		510,820
Smithfield Foods Inc.1	18,816		510,290
Service Corp. International1	68,308		510,261
New York Times Co. Class A	11,501		508,344
Harris Corp.	10,496		508,111
Ryland Group Inc.	5,720		508,108
Saks Inc.1	28,855		507,848
Annaly Mortgage Management Inc.	25,921		506,756
Sonoco Products Co.	20,833		505,825
Reliant Resources Inc.1	61,069		501,376
Puget Energy Inc.	22,385		500,752
Tech Data Corp.1	12,203		499,591
Rayonier Inc. REIT	11,410		498,736
Cullen/Frost Bankers Inc.	11,663		498,710
Edwards (A.G.) Inc.	12,740		498,389
ONEOK Inc.	22,078		497,859
Constellation Brands Inc.1	15,488		497,165
Hormel Foods Corp.	16,873		494,885
Arrow Electronics Inc.1	19,314		491,734
Autoliv Inc.	11,993		491,713
Sigma-Aldrich Corp.	8,804		487,213
American Capital Strategies Ltd.	14,657		487,199
Tellabs Inc.1	56,344		486,249
Level 3 Communications Inc.1	119,715		481,254
Toll Brothers Inc.1	10,573		480,331
LSI Logic Corp.1	51,166		477,890
Circuit City Stores Inc.	42,087		475,583
Pan Pacific Retail Properties Inc.	9,099		474,058
Deluxe Corp.	11,781		472,418
Lyondell Chemical Co.	31,756		471,259
Allied Waste Industries Inc.1	35,072		466,808
Siebel Systems Inc.1	40,514		466,316
Cummins Inc.	7,955		464,970
Providian Financial Corp.1	35,444		464,316
Valley National Bancorp	16,578		463,687
First American Corp.	15,231		463,327
Nationwide Financial Services Inc.	12,810		461,800
Federal Realty Investment Trust	9,983		461,215
Tektronix Inc.	14,016		458,463
Hubbell Inc. Class B	11,407		457,763
Aqua America Inc.	21,072		456,841
FirstMerit Corp.	17,495		455,745
Lee Enterprises Inc.	10,083		455,550
MGM Mirage1	9,985		452,720
Independence Community Bank Corp.	11,036		449,717
Convergys Corp.1	29,578		449,586

126 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL MIDCAP VALUE INDEX FUND

March 31, 2004

Security	Shares	Value
Belo (A.H.) Corp.	16,105	$	447,075
Washington Federal Inc.	17,368		443,405
Neiman-Marcus Group Inc. Class A	8,215		443,117
HRPT Properties Trust	39,197		442,926
Unitrin Inc.	10,277		440,883
RPM International Inc.	26,582		439,666
CenterPoint Properties Corp.	5,326		439,395
Hawaiian Electric Industries Inc.	8,464		438,774
Cabot Corp.	13,375		438,700
Ingram Micro Inc. Class A1	24,183		437,712
StanCorp Financial Group Inc.	6,594		430,259
Snap-On Inc.	13,200		426,888
IKON Office Solutions Inc.	33,031		422,797
Harsco Corp.	9,279		422,194
Vectren Corp.	17,039		420,352
AGL Resources Inc.	14,452		419,397
IndyMac Bancorp Inc.	11,504		417,480
Arden Realty Inc.	12,874		416,216
Calpine Corp.1	87,685		409,489
Omnicare Inc.	9,237		409,476
Storage Technology Corp.1	14,705		409,240
Healthcare Realty Trust Inc.	9,583		409,194
Shurgard Storage Centers Inc. Class A	10,185		406,382
Coors (Adolf) Company Class B	5,850		406,282
CarrAmerica Realty Corp.	11,981		406,156
Realty Income Corp.	8,906		397,653
Carlisle Companies Inc.	6,988		395,870
WPS Resources Corp.	8,203		392,103
Teleflex Inc.	7,952		391,477
BancorpSouth Inc.	17,883		391,280
Reebok International Ltd.	9,438		390,261
AmeriCredit Corp.1	22,845		389,050
Crane Co.	11,739		387,387
Provident Financial Group Inc.	9,614		386,098
Transatlantic Holdings Inc.	4,424		385,817
BRE Properties Inc. Class A	11,241		385,791
Intersil Corp. Class A	17,213		383,678
Whitney Holding Corp.	9,176		383,006
CNF Inc.	11,231		377,362
Lubrizol Corp.	11,893		374,511
Hudson City Bancorp Inc.	9,826		371,816
UGI Corp.	11,278		371,272
Pactiv Corp.1	16,654		370,552
T. Rowe Price Group Inc.	6,876		370,135
Noble Energy Inc.	7,855		369,971
Peoples Energy Corp.	8,272		369,345
McCormick & Co. Inc.	11,001		368,754
First Midwest Bancorp Inc.	10,757		367,244
National Fuel Gas Co.	14,863		365,630
Chelsea Property Group Inc.	5,738		361,150
Nicor Inc.	10,169		358,254
Forest City Enterprises Inc. Class A	6,587		354,710
Hudson United Bancorp	9,268		352,647
TCF Financial Corp.	6,870		350,851
Piedmont Natural Gas Co.	8,258		348,653
Old National Bancorp	15,400		348,040
Owens-Illinois Inc.1	24,748		346,967
Markel Corp.1	1,205		346,919
International Rectifier Corp.1	7,540		346,765
Borders Group Inc.	14,447		342,972
Camden Property Trust	7,623		342,654
MONY Group Inc. (The)1	10,812		339,929
Furniture Brands International Inc.	10,510		338,422
Atmel Corp.1	52,049		338,318
AGCO Corp.1	16,155		334,570
WGL Holdings Inc.	11,063		332,996
Raymond James Financial Inc.	13,399		332,965
Duquesne Light Holdings Inc.	17,040		332,280
Helmerich & Payne Inc.	11,563		331,280
Peabody Energy Corp.	7,054		328,082
Trizec Properties Inc.	18,876		323,723
Trustmark Corp.	11,105		323,156
Crescent Real Estate Equities Co.	17,877		321,250
Polo Ralph Lauren Corp.	9,176		314,553
International Bancshares Corp.	5,926		313,071
Comverse Technology Inc.1	17,211		312,208
Cytec Industries Inc.	8,766		311,807
Mills Corp.	5,805		309,348
Ethan Allen Interiors Inc.	7,458		307,717
Jefferies Group Inc.	8,682		306,735
Metro-Goldwyn-Mayer Inc.1	17,612		306,449
Imation Corp.	8,113		305,211

SCHEDULES OF INVESTMENTS 127

Schedule of Investments (Continued)

iSHARES^® RUSSELL MIDCAP VALUE INDEX FUND

March 31, 2004

Security	Shares	Value
Packaging Corporation of America	13,463	$	303,725
PerkinElmer Inc.	14,668		303,481
American Tower Corp. Class A1	26,736		303,454
M.D.C. Holdings Inc.	4,294		302,284
Fairchild Semiconductor International Inc. Class A1	12,573		302,129
Park National Corp.	2,636		298,659
ADC Telecommunications Inc.1	102,922		298,473
Lafarge North America Inc.	7,296		296,582
Mercury General Corp.	5,913		295,236
Airgas Inc.	13,825		294,472
AptarGroup Inc.	7,652		293,837
Triad Hospitals Inc.1	9,489		292,451
Mandalay Resort Group	5,089		291,396
CBL & Associates Properties Inc.	4,750		291,365
Gemstar-TV Guide International Inc.1	42,851		287,530
Polycom Inc.1	13,521		287,051
Valassis Communications Inc.1	9,428		286,611
ArvinMeritor Inc.	14,433		286,206
McClatchy Co. (The) Class A	3,987		283,236
HON Industries Inc.	7,577		281,561
National Semiconductor Corp.1	6,325		281,020
BearingPoint Inc.1	26,058		279,342
Regency Centers Corp.	5,974		279,165
Westamerica Bancorp	5,515		278,287
Barnes & Noble Inc.1	8,435		274,981
HCC Insurance Holdings Inc.	8,495		274,643
People’s Bank	5,869		272,850
PepsiAmericas Inc.	13,191		269,360
Ceridian Corp.1	13,463		265,356
Kinder Morgan Inc.	4,197		264,495
Scotts Co. (The) Class A1	4,115		263,977
Newfield Exploration Co.1	5,493		263,279
United Bancshares Inc.	8,618		262,849
Erie Indemnity Co. Class A	5,400		260,604
CIENA Corp.1	52,140		259,136
Unisys Corp.1	18,123		258,796
ICOS Corp.1	6,981		258,646
Manpower Inc.	5,506		256,029
Advanced Fibre Communications Inc.1	11,617		255,923
Del Monte Foods Co.1	22,745		255,881
Downey Financial Corp.	4,822		255,084
Lancaster Colony Corp.	6,306		254,762
Viad Corp.	10,427		252,021
Readers Digest Association Inc. (The)	17,852		251,356
Loews Corporation—Carolina Group	9,088		248,557
Dynegy Inc. Class A1	62,593		247,868
La-Z-Boy Inc.	11,310		246,106
American Axle & Manufacturing Holdings Inc.1	6,659		245,384
Media General Inc. Class A	3,645		245,236
Blyth Inc.	7,495		244,862
Neurocrine Biosciences Inc.1	4,114		243,137
Navistar International Corp.1	5,261		241,217
Henry Schein Inc.1	3,376		241,114
Premcor Inc.1	7,709		238,748
American Financial Group Inc.	7,961		237,477
Pride International Inc.1	13,871		236,639
Valeant Pharmaceuticals International	9,847		235,048
Florida Rock Industries Inc.	5,555		234,143
FNB Corp. (Florida)	10,582		233,862
Cypress Semiconductor Corp.1	11,254		230,369
Maxtor Corp.1	28,204		229,863
Reinsurance Group of America Inc.	5,556		227,629
CheckFree Corp.1	7,695		226,695
National-Oilwell Inc.1	7,737		218,802
Applied Micro Circuits Corp.1	37,924		218,063
UnitedGlobalCom Inc. Class A1	25,566		217,055
VeriSign Inc.1	13,040		216,334
Smith International Inc.1	4,010		214,575
American National Insurance Co.	2,387		213,613
Big Lots Inc.1	14,670		212,715
Integrated Device Technology Inc.1	14,126		211,890
Avery Dennison Corp.	3,374		209,897
International Flavors & Fragrances Inc.	5,897		209,343
Rowan Companies Inc.1	9,915		209,107
Legg Mason Inc.	2,208		204,858
Regis Corp.	4,587		203,846
Western Gas Resources Inc.	4,003		203,553
Novellus Systems Inc.1	6,401		203,488
AMETEK Inc.	7,840		201,018
Instinet Group Inc.1	28,058		197,809

128 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL MIDCAP VALUE INDEX FUND

March 31, 2004

Security	Shares	Value
AVX Corp.	11,978	$	197,517
Delta Air Lines Inc.	24,933		197,469
Tidewater Inc.	7,015		197,332
Hovnanian Enterprises Inc. Class A1	4,572		197,282
Hunt (J.B.) Transport Services Inc.1	6,964		196,176
Alleghany Corp.1	790		195,441
Renal Care Group Inc.1	4,234		193,748
Tootsie Roll Industries Inc.	5,266		192,520
CBRL Group Inc.	4,762		188,766
Health Net Inc.1	7,554		188,321
First National Bankshares of Florida	10,582		185,926
Hearst-Argyle Television Inc.	6,873		184,815
LNR Property Corp.	3,441		184,197
Outback Steakhouse Inc.	3,779		184,037
Human Genome Sciences Inc.1	14,679		183,928
Radio One Inc. Class D1	9,907		183,280
Westport Resources Corp.1	5,490		181,115
Cousins Properties Inc.	5,497		180,247
Darden Restaurants Inc.	7,154		177,348
Pepsi Bottling Group Inc.	5,899		175,495
Capitol Federal Financial	4,824		173,182
Affiliated Computer Services Inc. Class A1	3,233		167,793
PanAmSat Corp.1	6,808		166,660
Worthington Industries Inc.	8,677		166,338
WellChoice Inc.1	4,488		165,607
Scholastic Corp.1	6,058		165,081
Community Health Systems Inc.1	5,921		164,781
Equifax Inc.	6,296		162,563
Meredith Corp.	3,119		157,697
Brocade Communications Systems Inc.1	23,614		157,269
Timken Co. (The)	6,722		156,152
BOK Financial Corp.1	3,775		154,775
Diamond Offshore Drilling Inc.	6,244		151,042
Synovus Financial Corp.	6,028		147,385
Regal Entertainment Group Class A	6,667		146,541
Applera Corp. – Applied Biosystems Group	7,387		146,115
Winn-Dixie Stores Inc.	19,111		145,244
CNA Financial Corp.1	5,235		144,277
Protein Design Labs Inc.1	5,872		139,871
Student Loan Corp.	899		139,354
Lamar Advertising Co.1	3,444		138,518
Rite Aid Corp.1	25,102		136,555
IDT Corp.1	6,801		135,136
First Bancorp	3,200		133,120
Crown Castle International Corp.1	10,470		132,236
Ball Corp.	1,943		131,697
Michaels Stores Inc.	2,692		130,885
SunGard Data Systems Inc.1	4,664		127,794
Wynn Resorts Ltd.1	3,600		126,000
Wesco Financial Corp.	323		125,001
Texas Genco Holdings Inc.	3,432		122,694
Steelcase Inc. Class A	9,254		120,302
Bard (C.R.) Inc.	1,221		119,218
Performance Food Group Co.1	3,444		118,301
Emulex Corp.1	5,485		116,776
Pall Corp.	5,018		113,858
Jabil Circuit Inc.1	3,862		113,659
Varco International Inc.1	6,282		113,139
Werner Enterprises Inc.	5,908		111,957
Chesapeake Energy Corp.	8,193		109,786
Alliant Techsystems Inc.1	1,997		108,637
Pier 1 Imports Inc.	4,520		107,124
Church & Dwight Co. Inc.	2,451		106,153
Acxiom Corp.	4,816		105,759
Andrx Group1	3,858		104,938
Molex Inc.	3,441		104,572
Laboratory Corp. of America Holdings1	2,608		102,364
Commerce Bancorp Inc.	1,549		102,048
ITT Industries Inc.	1,315		100,374
BMC Software Inc.1	5,071		99,138
Blockbuster Inc.	5,525		96,687
LaBranche & Co. Inc.	8,607		96,484
WebMD Corp.1	10,404		92,492
Symbol Technologies Inc.	6,564		90,583
United States Cellular Corp.1	2,279		88,083
Key Energy Services Inc.1	7,974		87,714
GTECH Holdings Corp.	1,425		84,274
Friedman, Billings, Ramsey Group, Inc. Class A	3,043		82,131
O’Reilly Automotive Inc.1	2,034		81,441

SCHEDULES OF INVESTMENTS 129

Schedule of Investments (Continued)

iSHARES^® RUSSELL MIDCAP VALUE INDEX FUND

March 31, 2004

Security	Shares		Value
Interactive Data Corp.1		4,430	$	78,765
Odyssey Re Holdings Corp.		2,897		78,219
DST Systems Inc.1		1,713		77,685
Rent-A-Center Inc.1		2,308		76,141
DoubleClick Inc.1		6,568		73,890
International Speedway Corp. Class A		1,570		73,790
Jacobs Engineering Group Inc.1		1,646		73,412
Estee Lauder Companies Inc. Class A		1,646		72,984
Network Associates Inc.1		3,989		71,802
Univision Communications Inc. Class A1		2,141		70,674
Southern Peru Copper Corp.		1,722		69,655
Cox Radio Inc. Class A1		3,205		68,266
Cablevision Systems Corp.1		2,939		67,244
Swift Transportation Co. Inc.1		3,755		64,473
Avocent Corp.1		1,750		64,382
Donaldson Co. Inc.		2,181		57,862
Entravision Communications Corp.1		5,969		53,542
Universal Health Services Inc. Class B		984		45,333
Harte-Hanks Inc.		1,793		41,992
Cooper Cameron Corp.1		908		39,997
Entercom Communications Corp.1		797		36,080
BISYS Group Inc. (The)1		1,884		31,576
Claire’s Stores Inc.		1,375		28,655
Talbots Inc. (The)		748		26,763
Grant Prideco Inc.1		1,652		25,606
MSC Industrial Direct Co. Inc. Class A		803		24,050
Steris Corp.1		905		23,349
Global Payments Inc.		405		18,257
West Corp.1		250		6,225
TOTAL COMMON STOCKS (Cost: $351,170,222)				400,092,978
SHORT-TERM INVESTMENTS – 13.32%
MONEY MARKET FUNDS – 5.24%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares2,3		14,869,892		14,869,892
Barclays Global Investors Funds Prime Money Market Fund, Institutional Shares2,3		4,789,316		4,789,316
Security	Shares or Principal		Value
BlackRock Temp Cash Money Market Fund2		224,178	$	224,178
Short-Term Investment Co.-Liquid Assets Money Market Portfolio2		1,116,373		1,116,373
				20,999,759
FLOATING RATE NOTES – 2.64%
Beta Finance Inc.
1.05%, 05/20/042,4	$	217,696		217,692
1.05%, 09/15/042,4		435,392		435,373
1.06%, 10/12/042,4		217,696		217,685
1.14%, 08/23/042,4		217,696		217,770
CC USA Inc.
1.05%, 04/19/042,4		191,573		191,572
1.06%, 05/24/042,4		435,392		435,387
1.09%, 07/15/042,4		217,696		217,719
1.51%, 02/15/052,4		283,005		283,399
Dorada Finance Inc.
1.04%, 07/01/042		152,387		151,987
1.05%, 05/20/042,4		435,392		435,384
1.24%, 08/09/042		108,848		108,842
1.48%, 01/18/052,4		326,544		326,531
Five Finance Inc.
1.06%, 04/15/042,4		217,696		217,696
HBOS Treasury Services PLC
1.10%, 04/22/052		435,392		435,392
Holmes Financing PLC
1.05%, 04/15/042		43,539		43,539
K2 USA LLC
1.05%, 08/16/042,4		108,848		108,842
1.05%, 09/27/042,4		470,224		470,189
1.06%, 04/13/042		217,696		217,696
1.06%, 05/17/042		217,696		217,695
1.46%, 01/12/052,4		217,696		217,679
Links Finance LLC
1.05%, 06/28/042		217,696		217,686
1.06%, 05/04/042		217,696		217,695
1.06%, 07/20/042		174,157		174,146
Nationwide Building Society
1.09%, 07/23/042,4		326,544		326,544
1.11%, 12/28/042,4		435,392		435,392

130 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® RUSSELL MIDCAP VALUE INDEX FUND

March 31, 2004

Security	Principal		Value
Northern Rock PLC
1.11%, 01/13/052,4	$	413,623	$	413,623
Permanent Financing PLC
1.04%, 03/10/052		435,392		435,392
1.05%, 12/10/042		217,696		217,696
Sigma Finance Inc.
1.05%, 07/01/042		217,696		217,683
1.06%, 07/20/042		217,696		217,683
1.09%, 10/07/042		435,392		435,348
1.24%, 08/06/042		108,848		108,845
Tango Finance Corp.
1.05%, 01/18/052,4		191,573		191,557
1.06%, 07/15/042,4		130,618		130,605
1.07%, 02/25/052,4		243,820		243,776
1.10%, 07/06/042,4		130,618		130,614
WhistleJacket Capital LLC
1.05%, 09/15/042,4		217,696		217,676
1.32%, 02/04/052,4		108,848		108,830
White Pine Finance LLC
1.04%, 08/26/042,4		217,696		217,683
1.05%, 11/15/042,4		261,235		261,235
1.06%, 04/20/042,4		217,696		217,696
1.06%, 07/06/042,4		261,235		261,229
				10,566,703
COMMERCIAL PAPER – 2.44%
Alpine Securitization Corp.
1.03%, 04/14/042		204,634		204,559
1.03%, 04/20/042		217,696		217,578
1.03%, 04/23/042		256,882		256,720
1.03%, 04/26/042		217,696		217,540
Amsterdam Funding Corp.
1.03%, 05/05/042		176,334		176,162
Barton Capital Corp.
1.03%, 04/02/042		226,879		226,872
Blue Ridge Asset Funding Corp.
1.02%, 04/23/042		130,618		130,536
1.03%, 05/21/042		217,696		217,385
Corporate Asset Funding
1.05%, 05/21/042		226,404		226,075
Corporate Receivables Corp.
1.03%, 04/07/042		217,696		217,659
1.04%, 06/03/042		435,392		434,600
Delaware Funding Corp.
1.03%, 04/02/042		217,696		217,690
1.03%, 05/05/042		326,906		326,588
1.03%, 05/21/042		108,848		108,692
Edison Asset Securitization
1.07%, 09/21/042		217,696		216,577
Eureka Securitization Inc.
1.03%, 05/25/042		87,078		86,944
1.04%, 04/14/042		261,235		261,137
Falcon Asset Securitization
1.03%, 04/15/042		261,640		261,536
1.03%, 04/22/042		256,882		256,727
1.03%, 04/30/042		217,696		217,516
Galaxy Funding Inc.
1.05%, 05/17/042		217,696		217,406
Gemini Securitization Corp.
1.03%, 04/20/042		130,705		130,634
1.03%, 04/23/042		251,600		251,442
1.03%, 04/30/042		152,575		152,448
1.03%, 05/24/042		108,848		108,683
1.04%, 04/19/042		108,848		108,791
GIRO Funding US Corp.
1.05%, 05/19/042		108,848		108,696
Jupiter Securitization Corp.
1.03%, 04/16/042		435,392		435,206
1.03%, 04/19/042		587,780		587,477
1.03%, 04/28/042		261,235		261,034
1.03%, 04/30/042		370,845		370,538
Liberty Street Funding Corp.
1.04%, 04/08/042		152,544		152,513
1.05%, 04/05/042		176,334		176,313
Polonius Inc.
1.04%, 05/21/042		251,874		251,511
Preferred Receivables
Funding Corp.
1.03%, 04/19/042		457,162		456,926
1.04%, 04/23/042		500,701		500,384
1.04%, 05/20/042		108,848		108,694
Receivables Capital Corp.
1.04%, 04/14/042		191,573		191,501

SCHEDULES OF INVESTMENTS 131

Schedule of Investments (Continued)

iSHARES^® RUSSELL MIDCAP VALUE INDEX FUND

March 31, 2004

Security	Principal		Value
Scaldis Capital LLC
1.05%, 06/30/042	$	155,870	$	155,462
Thames Asset Global Securitization No. 1 Inc.
1.03%, 04/19/042		217,696		217,584
Thunder Bay Funding Inc.
1.03%, 04/19/042		138,477		138,405
1.04%, 04/29/042		196,101		195,943
				9,756,684
TIME DEPOSITS – 2.08%
Abbey National Treasury Services PLC
1.08%, 04/01/042		1,523,873		1,523,873
1.33%, 02/10/052		217,696		217,668
1.39%, 02/02/052		217,696		217,669
1.40%, 10/25/042		435,392		435,350
Bank of New York
1.39%, 11/01/042		435,392		435,367
Bank of Nova Scotia
1.24%, 10/07/042		326,544		326,527
1.42%, 10/29/042		326,544		326,558
Canadian Imperial Bank of Commerce
1.24%, 10/07/042		326,544		326,519
1.38%, 11/22/042		108,848		108,854
1.40%, 10/29/042		435,392		435,386
National City Bank (Cleveland, Ohio)
1.02%, 04/01/042		653,089		653,089
Toronto-Dominion Bank
1.04%, 06/22/042		108,848		108,848
1.22%, 03/23/052		761,937		761,806
1.34%, 02/10/052		174,157		174,135
1.41%, 11/01/042		326,544		326,525
UBS Finance (Delaware)
1.06%, 04/01/042		870,785		870,785
1.10%, 09/08/042		435,392		433,264
1.11%, 12/17/042		653,089		647,853
				8,330,076
REPURCHASE AGREEMENTS – 0.65%
Bank of America, NA
1.06%, 04/01/042		870,785		870,785
Goldman, Sachs & Co.
1.08%, 04/01/042		1,741,569		1,741,569
				2,612,354
U.S. GOVERNMENT AGENCY NOTES – 0.27%
Federal Home Loan Mortgage Corporation
1.15%, 05/12/042		326,544		326,117
1.28%, 08/19/042		174,157		173,290
Federal National Mortgage Association
1.28%, 08/20/042		566,010		563,172
				1,062,579
TOTAL SHORT-TERM INVESTMENTS (Cost: $53,328,155)				53,328,155
TOTAL INVESTMENTS IN SECURITIES – 113.25% (Cost $404,498,377)				453,421,133
Other Assets, Less Liabilities – (13.25%)				(53,038,065	)
NET ASSETS – 100.00%			$	400,383,068

¹ Non-income earning securities.

² All or a portion of this security represents investments of securities lending collateral.

³ Issuer is an affiliate of the Fund’s investment advisor. See Note 2.

⁴ Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

See notes to financial statements.

132 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities

iSHARES^® TRUST

March 31, 2004

	iShares Russell
	3000 Index Fund			3000 Growth Index Fund			3000 Value Index Fund			Midcap Index Fund			Midcap Growth Index Fund			Midcap Value Index Fund
ASSETS
Investments, at cost:
Unaffiliated issuers	$	1,587,294,525		$	117,356,884		$	213,026,792		$	593,077,105		$	482,510,233		$	384,839,169
Affiliates of the investment advisor	$	55,372,999		$	4,308,799		$	8,772,556		$	32,362,194		$	31,751,344		$	19,659,208
Investments in securities, at value (including securities on loana) (Note 1):
Unaffiliated issuers	$	1,510,752,932		$	121,958,959		$	240,475,763		$	649,264,124		$	551,289,074		$	433,761,925
Affiliates of the investment advisor		55,372,999			4,308,799			8,772,556			32,362,194			31,751,344			19,659,208
Receivables:
Investment securities sold		680,162			113,195			227,833			1,005,377			459,898			1,063,707
Dividends and interest		1,693,226			105,629			290,533			667,671			174,200			590,749
Capital shares sold		—			—			—			18,108			—			12,782
Total Assets		1,568,499,319			126,486,582			249,766,685			683,317,474			583,674,516			455,088,371
LIABILITIES
Payables:
Investment securities purchased		1,919,522			209,357			433,685			2,240,512			1,411,091			1,810,816
Collateral for securities on loan (Note 5)		144,041,614			11,630,375			22,533,147			85,985,033			88,398,307			51,295,601
Distribution to shareholders		4,714,788			194,746			848,726			1,697,288			289,087			1,455,154
Advisory fees (Note 2)		475,663			48,392			78,820			195,760			195,755			143,732
Total Liabilities		151,151,587			12,082,870			23,894,378			90,118,593			90,294,240			54,705,303
NET ASSETS	$	1,417,347,732		$	114,403,712		$	225,872,307		$	593,198,881		$	493,380,276		$	400,383,068
Net assets consist of:
Paid-in capital	$	1,554,981,720		$	123,347,538		$	203,172,423		$	541,747,864		$	438,741,959		$	356,565,870
Undistributed net investment income		225,521			12,333			70,330			82,406			22,940			119,182
Accumulated net realized loss		(61,317,916	)		(13,558,234	)		(4,819,417	)		(4,818,408	)		(14,163,464	)		(5,224,740	)
Net unrealized appreciation (depreciation)		(76,541,593	)		4,602,075			27,448,971			56,187,019			68,778,841			48,922,756
NET ASSETS	$	1,417,347,732		$	114,403,712		$	225,872,307		$	593,198,881		$	493,380,276		$	400,383,068
Shares outstanding		22,100,000			3,000,000			2,900,000			8,450,000			6,400,000			4,100,000
Net asset value per share	$	64.13		$	38.13		$	77.89		$	70.20		$	77.09		$	97.65

^a Securities on loan with market values of $139,099,030, $11,242,708, $21,769,832, $83,364,289, $85,789,456 and $49,628,808, respectively. See Note 5.

See notes to financial statements.

FINANCIAL STATEMENTS 133

Statements of Operations

iSHARES^® TRUST

Year Ended March 31, 2004

	iShares Russell
	3000 Index Fund			3000 Growth Index Fund			3000 Value Index Fund			Midcap Index Fund			Midcap Growth Index Fund			Midcap Value Index Fund
NET INVESTMENT INCOME
Dividendsa	$	20,460,723		$	890,123		$	3,429,182		$	5,589,000		$	1,416,357		$	4,726,463
Interestb		12,319			609			1,534			3,195			1,637			2,058
Securities lending incomeb		106,514			7,332			12,700			54,104			42,599			34,115
Total investment income		20,579,556			898,064			3,443,416			5,646,299			1,460,593			4,762,636
EXPENSES (Note 2)
Advisory fees		2,365,642			217,413			352,437			711,664			698,777			518,082
Total expenses		2,365,642			217,413			352,437			711,664			698,777			518,082
Net investment income		18,213,914			680,651			3,090,979			4,934,635			761,816			4,244,554
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments		(18,377,792	)		(2,464,419	)		(1,454,467	)		(3,460,226	)		(4,351,808	)		(4,295,374	)
In-kind redemptions		103,899,765			6,592,579			—			49,327,888			11,054,120			9,102,976
Net realized gain (loss)		85,521,973			4,128,160			(1,454,467	)		45,867,662			6,702,312			4,807,602
Net change in unrealized appreciation (depreciation) on investments		258,685,697			17,813,397			43,169,689			73,047,299			82,017,349			64,476,707
Net realized and unrealized gain		344,207,670			21,941,557		$	41,715,222			118,914,961			88,719,661			69,284,309
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	362,421,584		$	22,622,208		$	44,806,201		$	123,849,596		$	89,481,477		$	73,528,863

^a Net of foreign withholding tax of $2,088, $145, $264, $2,392, $1,860 and $1,297, respectively.

^b Includes income earned from affiliates of the Funds’ investment advisor. See Note 2.

See notes to financial statements.

134 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets

iSHARES^® TRUST

	iShares Russell 3000 Index Fund						iShares Russell 3000 Growth Index Fund						iShares Russell 3000 Value Index Fund
	For the year ended March 31, 2004			For the year ended March 31, 2003			For the year ended March 31, 2004			For the year ended March 31, 2003			For the year ended March 31, 2004			For the year ended March 31, 2003
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	18,213,914		$	16,552,383		$	680,651		$	403,493		$	3,090,979		$	1,759,769
Net realized gain (loss)		85,521,973			(65,574,448	)		4,128,160			(6,539,314	)		(1,454,467	)		(1,686,892	)
Net change in unrealized appreciation (depreciation)		258,685,697			(256,539,549	)		17,813,397			(7,131,915	)		43,169,689			(20,709,017	)
Net increase (decrease) in net assets resulting from operations		362,421,584			(305,561,614	)		22,622,208			(13,267,736	)		44,806,201			(20,636,140	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(18,369,578	)		(16,410,948	)		(695,739	)		(377,724	)		(3,080,793	)		(1,695,779	)
Return of capital		(55,483	)		—			—			—			—			—
Total distributions to shareholders		(18,425,061	)		(16,410,948	)		(695,739	)		(377,724	)		(3,080,793	)		(1,695,779	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		688,771,737			1,912,763,393			58,216,397			43,245,935			86,169,516			56,990,205
Cost of shares redeemed		(600,560,974	)		(1,966,586,993	)		(23,145,440	)		—			—			(3,392,837	)
Net increase (decrease) in net assets from capital share transactions		88,210,763			(53,823,600	)		35,070,957			43,245,935			86,169,516			53,597,368
INCREASE (DECREASE) IN NET ASSETS		432,207,286			(375,796,162	)		56,997,426			29,600,475			127,894,924			31,265,449
NET ASSETS:
Beginning of year		985,140,446			1,360,936,608			57,406,286			27,805,811			97,977,383			66,711,934
End of year	$	1,417,347,732		$	985,140,446		$	114,403,712		$	57,406,286		$	225,872,307		$	97,977,383
Undistributed net investment income included in net assets at end of year	$	225,521		$	696,614		$	12,333		$	30,846		$	70,330		$	105,311
SHARES ISSUED AND REDEEMED:
Shares sold		11,150,000			38,700,000			1,600,000			1,300,000			1,150,000			900,000
Shares redeemed		(9,900,000	)		(39,150,000	)		(600,000	)		—			—			(50,000	)
Net increase (decrease) in shares outstanding		1,250,000			(450,000	)		1,000,000			1,300,000			1,150,000			850,000

See notes to financial statements.

FINANCIAL STATEMENTS 135

Statements of Changes in Net Assets (Continued)

iSHARES^® TRUST

	iShares Russell Midcap Index Fund						iShares Russell Midcap Growth Index Fund						iShares Russell Midcap Value Index Fund
	For the year ended March 31, 2004			For the year ended March 31, 2003			For the year ended March 31, 2004			For the year ended March 31, 2003			For the year ended March 31, 2004			For the year ended March 31, 2003
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	4,934,635		$	1,543,348		$	761,816		$	161,251		$	4,244,554		$	1,798,490
Net realized gain (loss)		45,867,662			123,128			6,702,312			(9,721,862	)		4,807,602			340,781
Net change in unrealized appreciation (depreciation)		73,047,299			(18,187,418	)		82,017,349			(12,736,378	)		64,476,707			(18,943,733	)
Net increase (decrease) in net assets resulting from operations		123,849,596			(16,520,942	)		89,481,477			(22,296,989	)		73,528,863			(16,804,462	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(4,817,304	)		(1,368,806	)		(755,204	)		(140,691	)		(4,095,678	)		(1,668,357	)
Return of capital		(120,633	)		—			—			—			(114,083	)		—
Total distributions to shareholders		(4,937,937	)		(1,368,806	)		(755,204	)		(140,691	)		(4,209,761	)		(1,668,357	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		451,799,487			180,731,023			306,637,115			61,393,587			247,878,835			86,530,245
Cost of shares redeemed		(171,266,083	)		(17,828,437	)		(18,456,546	)		(3,329,049	)		(22,040,761	)		(17,074,388	)
Net increase in net assets from capital share transactions		280,533,404			162,902,586			288,180,569			58,064,538			225,838,074			69,455,857
INCREASE IN NET ASSETS		399,445,063			145,012,838			376,906,842			35,626,858			295,157,176			50,983,038
NET ASSETS:
Beginning of year		193,753,818			48,740,980			116,473,434			80,846,576			105,225,892			54,242,854
End of year	$	593,198,881		$	193,753,818		$	493,380,276		$	116,473,434		$	400,383,068		$	105,225,892
Undistributed net investment income included in net assets at end of year	$	82,406		$	180,468		$	22,940		$	22,347		$	119,182		$	147,882
SHARES ISSUED AND REDEEMED:
Shares sold		7,050,000			3,650,000			4,450,000			1,150,000			2,750,000			1,200,000
Shares redeemed		(2,700,000	)		(350,000	)		(300,000	)		(50,000	)		(250,000	)		(250,000	)
Net increase in shares outstanding		4,350,000			3,300,000			4,150,000			1,100,000			2,500,000			950,000

See notes to financial statements.

136 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares Russell 3000 Index Fund
	Year ended Mar. 31, 2004			Year ended Mar. 31, 2003			Year ended Mar. 31, 2002			Period from May 22, 20001 to Mar. 31, 2001
Net asset value, beginning of period	$	47.25		$	63.89		$	63.69		$	76.23
Income from investment operations:
Net investment income		0.90			0.90			0.65			0.51
Net realized and unrealized gain (loss)		16.90			(16.65	)		0.19			(12.56	)
Total from investment operations		17.80			(15.75	)		0.84			(12.05	)
Less distributions from:
Net investment income		(0.92	)		(0.89	)		(0.64	)		(0.48	)
Net realized gain		—			—			—			(0.01	)
Return of capital		(0.00	)5		—			—			—
Total distributions		(0.92	)		(0.89	)		(0.64	)		(0.49	)
Net asset value, end of period	$	64.13		$	47.25		$	63.89		$	63.69
Total return		37.86	%		(24.73	)%		1.35	%		(15.90	)%2
Ratios/Supplemental data:
Net assets, end of period (000s)	$	1,417,348		$	985,140		$	1,360,937		$	388,509
Ratio of expenses to average net assets3		0.20	%		0.20	%		0.20	%		0.20	%
Ratio of net investment income to average net assets3		1.54	%		1.53	%		1.20	%		1.09	%
Portfolio turnover rate4		4	%		5	%		6	%		3	%

¹ Commencement of operations.

² Not annualized.

³ Annualized for periods of less than one year.

⁴ Excludes portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

⁵ Rounds to less than $(0.01).

See notes to financial statements.

FINANCIAL HIGHLIGHTS 137

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares Russell 3000 Growth Index Fund
	Year ended Mar. 31, 2004			Year ended Mar. 31, 2003			Year ended Mar. 31, 2002			Period from Jul. 24, 20001 to Mar. 31, 2001
Net asset value, beginning of period	$	28.70		$	39.72		$	40.70		$	68.63
Income from investment operations:
Net investment income		0.25			0.23			0.20			0.06
Net realized and unrealized gain (loss)		9.44			(11.03	)		(0.99	)		(27.93	)
Total from investment operations		9.69			(10.80	)		(0.79	)		(27.87	)
Less distributions from:
Net investment income		(0.26	)		(0.22	)		(0.19	)		(0.06	)
Net realized gain		—			—			—			(0.00	)5
Total distributions		(0.26	)		(0.22	)		(0.19	)		(0.06	)
Net asset value, end of period	$	38.13		$	28.70		$	39.72		$	40.70
Total return		33.84	%		(27.21	)%		(1.95	)%		(40.62	)%2
Ratios/Supplemental data:
Net assets, end of period (000s)	$	114,404		$	57,406		$	27,806		$	20,351
Ratio of expenses to average net assets3		0.25	%		0.25	%		0.25	%		0.25	%
Ratio of net investment income to average net assets3		0.78	%		0.83	%		0.47	%		0.20	%
Portfolio turnover rate4		11	%		15	%		18	%		3	%

¹ Commencement of operations.

² Not annualized.

³ Annualized for periods of less than one year.

⁴ Excludes portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

⁵ Rounds to less than $0.01.

See notes to financial statements.

138 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares Russell 3000 Value Index Fund
	Year ended Mar. 31, 2004			Year ended Mar. 31, 2003			Year ended Mar. 31, 2002			Period from Jul. 24, 20001 to Mar. 31, 2001
Net asset value, beginning of period	$	55.99		$	74.12		$	71.59		$	69.91
Income from investment operations:
Net investment income		1.43			1.21			1.25			0.83
Net realized and unrealized gain (loss)		21.94			(18.13	)		2.50			1.71
Total from investment operations		23.37			(16.92	)		3.75			2.54
Less distributions from:
Net investment income		(1.47	)		(1.21	)		(1.22	)		(0.77	)
Net realized gain		—			—			—			(0.09	)
Total distributions		(1.47	)		(1.21	)		(1.22	)		(0.86	)
Net asset value, end of period	$	77.89		$	55.99		$	74.12		$	71.59
Total return		42.04	%		(22.92	)%		5.34	%		3.60	%2
Ratios/Supplemental data:
Net assets, end of period (000s)	$	225,872		$	97,977		$	66,712		$	32,216
Ratio of expenses to average net assets3		0.25	%		0.25	%		0.25	%		0.25	%
Ratio of net investment income to average net assets3		2.19	%		2.20	%		1.79	%		1.67	%
Portfolio turnover rate4		13	%		16	%		15	%		4	%

¹ Commencement of operations.

² Not annualized.

³ Annualized for periods of less than one year.

⁴ Excludes portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 139

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares Russell Midcap Index Fund
	Year ended Mar. 31, 2004			Year ended Mar. 31, 2003			Period from Jul. 17, 20011 to Mar. 31, 2002
Net asset value, beginning of period	$	47.26		$	60.93		$	59.55
Income from investment operations:
Net investment income		0.77			0.60			0.46
Net realized and unrealized gain (loss)		22.98			(13.67	)		1.32
Total from investment operations		23.75			(13.07	)		1.78
Less distributions from:
Net investment income		(0.79	)		(0.60	)		(0.40	)
Return of capital		(0.02	)		—			—
Total distributions		(0.81	)		(0.60	)		(0.40	)
Net asset value, end of period	$	70.20		$	47.26		$	60.93
Total return		50.47	%		(21.50	)%		3.08	%2
Ratios/Supplemental data:
Net assets, end of period (000s)	$	593,199		$	193,754		$	48,741
Ratio of expenses to average net assets3		0.20	%		0.20	%		0.20	%
Ratio of net investment income to average net assets3		1.39	%		1.50	%		1.40	%
Portfolio turnover rate4		7	%		15	%		7	%

¹ Commencement of operations.

² Not annualized.

³ Annualized for periods of less than one year.

⁴ Excludes portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.

140 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares Russell Midcap Growth Index Fund
	Year ended Mar. 31, 2004			Year ended Mar. 31, 2003			Period from Jul. 17, 20011 to Mar. 31, 2002
Net asset value, beginning of period	$	51.77		$	70.30		$	73.06
Income from investment operations:
Net investment income		0.15			0.09			0.03
Net realized and unrealized gain (loss)		25.33			(18.54	)		(2.77	)
Total from investment operations		25.48			(18.45	)		(2.74	)
Less distributions from:
Net investment income		(0.16	)		(0.08	)		(0.02	)
Total distributions		(0.16	)		(0.08	)		(0.02	)
Net asset value, end of period	$	77.09		$	51.77		$	70.30
Total return		49.25	%		(26.24	)%		(3.75	)%2
Ratios/Supplemental data:
Net assets, end of period (000s)	$	493,380		$	116,473		$	80,847
Ratio of expenses to average net assets3		0.25	%		0.25	%		0.25	%
Ratio of net investment income to average net assets3		0.27	%		0.20	%		0.08	%
Portfolio turnover rate4		10	%		31	%		5	%

¹ Commencement of operations.

² Not annualized.

³ Annualized for periods of less than one year.

⁴ Excludes portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 141

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares Russell Midcap Value Index Fund
	Year ended Mar. 31, 2004			Year ended Mar. 31, 2003			Period from Jul. 17, 20011 to Mar. 31, 2002
Net asset value, beginning of period	$	65.77		$	83.45		$	78.86
Income from investment operations:
Net investment income		1.49			1.35			1.02
Net realized and unrealized gain (loss)		31.94			(17.70	)		4.49
Total from investment operations		33.43			(16.35	)		5.51
Less distributions from:
Net investment income		(1.51	)		(1.33	)		(0.92	)
Return of capital		(0.04	)		—			—
Total distributions		(1.55	)		(1.33	)		(0.92	)
Net asset value, end of period	$	97.65		$	65.77		$	83.45
Total return		51.17	%		(19.69	)%		7.14	%2
Ratios/Supplemental data:
Net assets, end of period (000s)	$	400,383		$	105,226		$	54,243
Ratio of expenses to average net assets3		0.25	%		0.25	%		0.25	%
Ratio of net investment income to average net assets3		2.05	%		2.24	%		1.91	%
Portfolio turnover rate4		10	%		24	%		6	%

¹ Commencement of operations.

² Not annualized.

³ Annualized for the periods of less than one year.

⁴ Excludes portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.

142 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to the Financial Statements

iSHARES^® TRUST

1. SIGNIFICANT ACCOUNTING POLICIES

iShares Trust (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 statutory trust pursuant to an Agreement and Declaration of Trust dated December 16, 1999. As of March 31, 2004, the Trust offered 61 investment portfolios or funds.

These financial statements relate only to the iShares Russell 3000, iShares Russell 3000 Growth, iShares Russell 3000 Value, iShares Russell Midcap, iShares Russell Midcap Growth, and iShares Russell Midcap Value Index Funds (each a “Fund”, collectively the “Funds”).

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 achieve each Fund’s investment objective. Each of the Funds is classified as a diversified fund under the 1940 Act.

Under the Trust’s organizational documents, the Funds’ officers and trustees are indemnified against certain liabilities that may arise out of the performance of their duties to the Funds. Additionally, in the normal course of business, the Funds enter into contracts with service providers that contain general indemnification clauses. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred.

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 for which the primary market is the National Association of Securities Dealers Automated Quotations National Market System (“NASDAQ”) are valued at the NASDAQ Official Closing Price. Securities not listed on an exchange or national securities market, or securities for which there were no sales prices, are valued at the latest quoted bid prices. U.S. Government obligations are valued at the latest quoted bid price. Short-term investments are valued at amortized cost, which approximates market value. Mutual fund shares are valued at net asset value. Any securities, including restricted securities or other assets for which market quotations are not readily available, or for which a significant event has occurred since the time of the most recent market quotation, are valued in accordance with fair value pricing 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.

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.

NOTES TO THE FINANCIAL STATEMENTS 143

Notes to the Financial Statements (Continued)

iSHARES^® TRUST

At March 31, 2004, the tax year-end of the Funds, the components of distributable earnings (accumulated losses) on a tax basis were as follows:

iShares Index Fund	Undistributed Ordinary Income		Unrealized Appreciation (Depreciation)			Capital and Other Losses			Total Distributable Earnings (Accumulated Losses)
Russell 3000	$	—	$	(91,746,025	)	$	(45,887,963	)	$	(137,633,988	)
Russell 3000 Growth		9,075		4,166,511			(13,119,412	)		(8,943,826	)
Russell 3000 Value		4,078		24,990,857			(2,295,051	)		22,699,884
Russell Midcap		—		54,383,381			(2,932,364	)		51,451,017
Russell Midcap Growth		21,910		66,842,963			(12,226,556	)		54,638,317
Russell Midcap Value		—		47,099,885			(3,282,687	)		43,817,198

The differences between the components of distributable earnings (accumulated losses) on a tax basis and the amounts reflected in the Statements of Assets and Liabilities are primarily due to differing treatments of wash sales.

For the year ended March 31, 2004 and March 31, 2003, the tax characterization of distributions paid for each Fund was equal to the book characterization of distributions paid. The total distributions and distributions per share are disclosed in the accompanying Statements of Changes in Net Assets and the Financial Highlights for all Funds.

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 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 year ended March 31, 2004.

From November 1, 2003 to March 31, 2004, certain of the Funds incurred net realized capital losses. As permitted by tax regulations, these Funds have elected to defer those losses and treat them as arising in the year ending March 31, 2005.

iShares Index Fund	Deferred Net Realized Capital Losses
Russell 3000	$	924,941
Russell 3000 Growth		3,458

144 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to the Financial Statements (Continued)

iSHARES^® TRUST

The Funds had tax basis net capital loss carryforwards at March 31, 2004, the tax year-end of the Funds, as follows:

iShares Index Fund	Expiring 2010		Expiring 2011		Expiring 2012		Total
Russell 3000	$	21,789,321	$	14,801,082	$	8,372,619	$	44,963,022
Russell 3000 Growth		4,176,050		6,607,675		2,332,229		13,115,954
Russell 3000 Value		605,073		1,545,605		144,373		2,295,051
Russell Midcap		66,369		1,282,837		1,583,158		2,932,364
Russell Midcap Growth		40,231		10,035,874		2,150,451		12,226,556
Russell Midcap Value		30,986		477,717		2,773,984		3,282,687

Net capital loss carryforwards may be applied against any net realized taxable gains in each succeeding year, or until their respective expiration dates, whichever occurs first.

For the year ended March 31, 2004, the Funds realized net capital gains or losses resulting from in-kind redemptions of large blocks of 50,000 or more shares or multiples thereof (“Creation Units”). Because such gains or losses are not taxable to the Funds, and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gains or losses to paid-in-capital at the end of the Funds’ tax year. These reclassifications have no effect on net assets or net asset values per share. The in-kind gains or losses for the year ended March 31, 2004 are disclosed in the Funds’ Statements of Operations.

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 an investment by the Fund, collateralized by securities, which are delivered to the Funds’ custodian or to an agent bank under a tri-party agreement. 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 Funds did not enter into any repurchase agreements at March 31, 2004; however, cash collateral for securities on loan was invested in repurchase agreements at March 31, 2004. For further information, see Note 5, below.

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 the Investment Advisory 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 execution of portfolio transactions, distribution fees and extraordinary expenses. Expenses related to the organization and initial registration of the Trust were borne by BGFA.

NOTES TO THE FINANCIAL STATEMENTS 145

Notes to the Financial Statements (Continued)

iSHARES^® TRUST

For its investment advisory services to each Fund, BGFA is entitled to an annual advisory fee based on the average daily net assets of each Fund as follows:

iShares Index Fund	Advisory Fee
Russell 3000	0.20	%
Russell 3000 Growth	0.25
Russell 3000 Value	0.25
Russell Midcap	0.20	%
Russell Midcap Growth	0.25
Russell Midcap Value	0.25

Investors Bank & Trust Company (“Investors Bank”) serves as administrator, custodian and transfer agent for the Trust. As compensation for its services, Investors Bank 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.

Barclays Global Investors, N.A. (“BGI”) serves as securities lending agent for the Trust. BGI is an affiliate of BGFA, the Funds’ investment advisor. As securities lending agent, BGI receives as fees, a share of the income earned on investment of the cash collateral received for the loan of securities. For the year ended March 31, 2004, BGI earned securities lending agent fees as follows:

iShares Index Fund	Securities Lending Agent Fees
Russell 3000	$	107,273
Russell 3000 Growth		7,394
Russell 3000 Value		12,820
Russell Midcap		54,580
Russell Midcap Growth		43,009
Russell Midcap Value		34,418

SEI Investments Distribution Company (“SEI”) serves as each Fund’s underwriter and distributor of the shares of each Fund, pursuant to a Distribution Agreement with the Trust. SEI does not receive a fee from the Funds for its distribution services.

Barclays Global Investors Services (“BGIS”), a subsidiary of BGI, may serve as a broker-dealer for the Funds. For the year ended March 31, 2004, BGIS did not receive any brokerage commissions from the Funds.

Pursuant to Rule 17a-7 of the 1940 Act, the Funds executed cross trades for the year ended March 31, 2004. Cross trading is the buying or selling of portfolio securities between funds to which BGFA (or an affiliate) serves as investment advisor. The Board reviewed all such transactions executed during the first three quarters of the fiscal year and concluded that they were in compliance with the requirements and restrictions set forth by Rule 17a-7. The Board is scheduled at its next meeting to review all such transactions executed during the fourth quarter of the fiscal year.

Pursuant to an exemptive order issued by the U.S. Securities and Exchange Commission, each Fund may invest in the Institutional Shares of the Institutional Money Market Fund (“IMMF”) and Prime Money Market Fund (“PMMF”) of Barclays Global Investors Funds. The IMMF and PMMF are feeder funds in a master/feeder fund structure that invest substantially all of their assets in the Money Market Master Portfolio and Prime Money Market Master Portfolio (collectively, the “Master Portfolios”), respectively, which are managed by BGFA, the Funds’ investment advisor. The IMMF and PMMF are open-end money market funds available only to institutional investors, including other investment

146 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to the Financial Statements (Continued)

iSHARES^® TRUST

companies managed by BGFA. The IMMF and PMMF seek a high level of income consistent with liquidity and the preservation of capital. While the IMMF and PMMF do not directly charge an advisory fee, the Master Portfolios in which they invest do charge an advisory fee. Income distributions from the IMMF and PMMF are declared daily and paid monthly from net investment income. Income distributions earned by the Funds from temporary cash investments or from investment of securities lending collateral are recorded as either interest income or securities lending income, respectively, in the accompanying Statements of Operations.

Transactions in shares of issuers affiliated with BGFA for the year ended March 31, 2004, including interest income were as follows:

Name of Issuer	Number of Shares Held Beginning of Year (in 000s)	Gross Additions (in 000s)	Gross Reductions (in 000s)	Number of Shares Held End of Year (in 000s)	Value at End of Year		Interest Income
iShares Russell 3000 Index Fund
IMMF	894	234,240	229,258	5,876	$	5,876,126	$	10,120
iShares Russell 3000 Growth Index Fund
IMMF	35	13,749	13,472	312		312,265		609
iShares Russell 3000 Value Index Fund
IMMF	128	31,800	30,898	1,030		1,029,602		1,404
iShares Russell Midcap Index Fund
IMMF	154	70,768	68,105	2,817		2,817,245		3,078
iShares Russell Midcap Growth Index Fund
IMMF	51	32,501	31,177	1,375		1,375,125		1,448
iShares Russell Midcap Value Index Fund
IMMF	134	41,284	39,385	2,033		2,032,553		1,840

Due to the nature of the structure of the joint account used for the investment of the collateral for securities lending, the transactions reported for the IMMF do not include activity related to the Funds’ holdings of this issuer for securities lending purposes. In addition to the transactions disclosed above, the Funds also invested in the PMMF for purposes of investing collateral from securities lending.

As of March 31, 2004, certain trustees and officers of the Trust are also officers of BGI.

3. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the year ended March 31, 2004 were as follows:

Ishares Index Fund	Purchases		Sales
Russell 3000	$	43,760,170	$	43,718,213
Russell 3000 Growth		9,584,211		9,595,846
Russell 3000 Value		17,967,002		17,873,509
Russell Midcap		26,224,453		25,428,853
Russell Midcap Growth		28,632,943		28,519,296
Russell Midcap Value		22,019,138		21,361,054

NOTES TO THE FINANCIAL STATEMENTS 147

Notes to the Financial Statements (Continued)

iSHARES^® TRUST

In-kind transactions (see Note 4) for the year ended March 31, 2004 were as follows:

Ishares Index Fund	In-kind Purchases		In-kind Sales
Russell 3000	$	688,030,815	$	600,025,353
Russell 3000 Growth		58,172,732		23,126,544
Russell 3000 Value		86,032,652		—
Russell Midcap		479,576,699		200,089,201
Russell Midcap Growth		334,627,946		46,660,967
Russell Midcap Value		262,245,501		37,239,088

At March 31, 2004, the aggregate unrealized appreciation and depreciation based on cost for federal income tax purposes were as follows:

Ishares Index Fund	Tax Cost		Unrealized Appreciation		Unrealized Depreciation			Net Unrealized Appreciation (Depreciation)
Russell 3000	$	1,657,871,956	$	78,848,023	$	(170,594,048	)	$	(91,746,025	)
Russell 3000 Growth		122,101,247		9,127,409		(4,960,898	)		4,166,511
Russell 3000 Value		224,257,462		29,330,923		(4,340,066	)		24,990,857
Russell Midcap		627,242,937		62,673,953		(8,290,572	)		54,383,381
Russell Midcap Growth		516,197,455		73,775,229		(6,932,266	)		66,842,963
Russell Midcap Value		406,321,248		50,120,152		(3,020,267	)		47,099,885

4. CAPITAL SHARE TRANSACTIONS

At March 31, 2004, there were an unlimited number of no par value capital shares of beneficial interest authorized. Capital shares are issued and redeemed by each Fund only in Creation Units or multiples thereof. Except when aggregated in Creation Units, shares of each Fund are not redeemable. Transactions in capital shares for each Fund are disclosed in detail in the Statements of Changes in Net Assets.

The consideration for the 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.

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, which consists of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. Government. The initial collateral received is required to have a value of at least 102% of the market value of the loaned securities for securities denominated in U.S. dollars and a value of at least 105% for all other securities. The collateral is maintained thereafter, at a value equal to at least 100% of the current market value of the securities on loan. The risks to a Fund of securities lending are that the borrower may not provide additional collateral when required, or return the securities when due.

148 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to the Financial Statements (Continued)

iSHARES^® TRUST

As of March 31, 2004, the Funds had loaned securities which were collateralized by cash. The cash collateral received was invested in a joint account with other funds managed by BGFA, which invests in securities with remaining maturities of 397 days or less, repurchase agreements and money market mutual funds including money market funds managed by BGFA. Repurchase agreements held in the joint account are fully collateralized by U.S. Government securities. Income from the joint account is allocated daily to each Fund, based on each Fund’s portion of the total cash collateral received. The market value of the securities on loan at March 31, 2004 and the value of the related collateral are disclosed in the Statements of Assets and Liabilities. Securities lending income is presented net of broker rebates and fees paid to BGI.

NOTES TO THE FINANCIAL STATEMENTS 149

Report Of Independent Registered Public Accounting Firm

To the Shareholders and Board of Trustees of

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 Russell Series (the “Funds”), as listed on the table of contents, at March 31, 2004, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended and their financial highlights for each of the periods presented, 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 the standards of the Public Company Accounting Oversight Board (United States), 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, 2004 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California

May 21, 2004

150 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Tax Information (Unaudited)

iSHARES^® TRUST

For corporate shareholders, a portion of the income dividends paid by the Funds during the year ended March 31, 2004 qualified for the dividends-received deduction:

iShares Index Fund	Dividends- Received Deduction
Russell 3000	100.00	%
Russell 3000 Growth	100.00
Russell 3000 Value	99.99
Russell Midcap	95.62
Russell Midcap Growth	100.00
Russell Midcap Value	90.74

Qualified dividend income received by the Funds through March 31, 2004 that qualified for a reduced tax rate pursuant to the Jobs and Growth Tax Relief Reconciliation Act of 2003 are as follows:

iShares Index Fund	Qualified Dividend Income
Russell 3000	$	18,014,635
Russell 3000 Growth		826,341
Russell 3000 Value		2,876,816
Russell Midcap		4,062,504
Russell Midcap Growth		1,387,769
Russell Midcap Value		3,298,449

TAX INFORMATION 151

Supplemental Information (Unaudited)

iSHARES^® TRUST

The tables that follow present information about the differences between the daily market price on secondary markets for shares of an 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. The “Market Price” of each iShares Fund generally is determined using the midpoint between the highest bid and the lowest offer on the stock exchange on which the shares of such Fund is listed for trading, as of the time that the Fund’s NAV is calculated. Each Fund’s Market Price may be at, above or below its NAV. The NAV of each Fund will fluctuate with changes in the market value of its portfolio holdings. The Market 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 (expressed as a percentage) between the NAV and Market Price of a Fund on a given day, generally at the time NAV is calculated. 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.

The following information shows the frequency distributions of premiums and discounts for each of the iShares Funds included in this report. The information shown for each Fund is for each full calendar quarter completed after the inception date of such Fund through March 31, 2004, the date of the most recent calendar quarter end. The specific periods covered for each Fund are disclosed in the table for such Fund.

Each line in the table shows the number of trading days in which the ishares fund traded within the premium/discount range indicated. The number of trading days in each premium/discount range is also shown as a percentage of the total number of trading days in the period covered by each table. All data presented here represents past performance, which cannot be used to predict future results.

iShares Russell 3000 Index Fund

Period Covered: July 1, 2000 through March 31, 2004

	Number of Days	Percentage of Total Days
Greater than 0.5%	9	0.96	%
Between 0.5% and – 0.5%	914	97.54
Less than – 0.5% and Greater than – 1.0%	10	1.07
Less than – 1.0%	4	0.43
	937	100.00	%

iShares Russell 3000 Growth Index Fund

Period Covered: October 1, 2000 through March 31, 2004

	Number of Days	Percentage of Total Days
Greater than 0.5% and Less than 1.0%	15	1.72	%
Between 0.5% and – 0.5%	839	95.99
Less than – 0.5% and Greater than – 1.0%	15	1.72
Less than – 1.0%	5	0.57
	874	100.00	%

152 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^® TRUST

iShares Russell 3000 Value Index Fund

Period Covered: October 1, 2000 through March 31, 2004

	Number of Days	Percentage of Total Days
Greater than 0.5%	4	0.46	%
Between 0.5% and – 0.5%	856	97.94
Less than – 0.5% and Greater than – 1.0%	9	1.03
Less than – 1.0%	5	0.57
	874	100.00	%

iShares Russell Midcap Index Fund

Period Covered: October 1, 2001 through March 31, 2004

	Number of days	Percentage of Total Days
Greater than 0.5%	6	0.96	%
Between 0.5% and – 0.5%	613	97.92
Less than – 0.5% and Greater than – 1.0%	5	0.80
Less than – 1.0%	2	0.32
	626	100.00	%

iShares Russell Midcap Growth Index Fund

Period Covered: October 1, 2001 through March 31, 2004

	Number of Days	Percentage of Total Days
Greater than 1.0%	1	0.16	%
Greater than 0.5% and Less than 1.0%	11	1.76
Between 0.5% and – 0.5%	606	96.80
Less than – 0.5% and Greater than – 1.0%	7	1.12
Less than – 1.0%	1	0.16
	626	100.00	%

iShares Russell Midcap Value Index Fund

Period Covered: October 1, 2001 through March 31, 2004

	Number of Days	Percentage of Total Days
Greater than 0.5%	3	0.48	%
Between 0.5% and – 0.5%	619	98.87
Less than – 0.5%	4	0.65
	626	100.00	%

SUPPLEMENTAL INFORMATION 153

Trustee Information (Unaudited)

iSHARES^® TRUST

The Board of Trustees has responsibility for the overall management and operations of the Trust, including general supervision of the duties performed by BGFA and other service providers. Each Trustee serves until his or her successor is duly elected or appointed and qualified.

iShares Trust, iShares, Inc., Barclays Global Investors Funds and Master Investment Portfolio are considered to be members of the same fund complex, as defined in Form N-1A under the 1940 Act. Each Trustee of iShares Trust also serves as a Director for iShares, Inc. and oversees 87 portfolios within the fund complex. In addition, Lee T. Kranefuss and Richard K. Lyons each serves as a Trustee for Barclays Global Investors Funds and Master Investment Portfolio and oversees 114 portfolios within the fund complex.

Unless otherwise noted in the tables below, the address for each Trustee is 45 Fremont Street, San Francisco, California 94105. Additional information about the Funds’ Trustees may be found in the Funds’ Statement of Additional Information, which is available without charge upon request by calling toll-free 1-800-474-2737.

Interested Trustees

Name and Age	Position(s), Length of Service	Principal Occupation(s) During Past 5 Years	Other Directorships Held
*Lee T. Kranefuss (42)	Trustee, Chairman, and President (since June 18, 2003)	Chief Executive Officer of Intermediary Investor and Exchange Traded Products Business of BGI (since 2003) Chief Executive Officer of the individual Investor Business of BGI (1997-2003).	Director (since June 18, 2003) of iShares, Inc.; Board of Trustees for Barclays Global Investors Funds and Master Investment Portfolio (since 2001).
*Nathan Most (90)	Trustee (since December 16, 1999)	Consultant to BGI (1998-2002), American Stock Exchange (1996-2000) and the Hong Kong Stock Exchange (1998 to present); Consultant to the Amsterdam Stock Exchange (1997-1998); Consultant to the Pacific Stock Exchange (1997-1998).	Director (since 1996) and President (1996-2002) of iShares, Inc.
*John E. Martinez (42)	Trustee (since December 5, 2003)	Co-CEO of Global Index and Markets Group of BGI (2001-2003): Chairman of Barclays Global Investors Services (2000-2003); CEO of Capital Markets Group of BGI (1996-2001).	Director (since December 5, 2003) of iShares, Inc.; Director (since November 2003) of Barclays Global Investors UK Holdings.

* Lee T. Kranefuss, Nathan Most and John E. Martinez are deemed to be “interested persons” (as defined in the 1940 Act) of the Trust due to their affiliations with BGFA, the Funds’ investment advisor and BGI, the parent company of BGFA.

154 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Trustee Information (Unaudited) (Continued)

iSHARES^® TRUST

Independent Trustees

Name and Age	Position(s), Length of Service	Principal Occupation(s) During Past 5 Years	Other Directorships Held
John B. Carroll (68)	Trustee (since January 1, 2002)	Retired Vice President of Investment Management (1984-2000) of Verizon Corporation; Advisory Board member of Ibbotson Associates (1992-1998); former Vice Chairman and Executive Committee Member (1994-1998) of the Committee on Investment of Employee Benefit Assets of the Financial Executive Institute.	Director (since 1996) of iShares, Inc.; Trustee and member of the Executive Committee (since 1991) of The Common Fund Institutional Funds, a non-profit organization; Member of the Board of Managers of JP Morgan Private Equity Funds.
Richard K. Lyons (43)	Trustee (since February 15, 2000)	Professor, University of California, Berkeley: Haas School of Business (since 1993); Consultant for IMF World Bank, Federal Reserve Bank, and Citibank N.A. (since 2000).	Director (since 2001) of iShares, Inc.; Trustee of Master Investment Portfolio and Barclays Global Investors Funds (since 2001); Board of Trustees: Trustee (Chairman) Matthews Asian Funds since 1995 (oversees 6 portfolios).
George C. Parker(65)	Trustee (since February 15, 2000)	Dean Witter Distinguished Professor of Finance (since 1994); Associate Dean for Academic Affairs, Director of MBA Program, and Professor, Stanford University: Graduate School of Business (1993-2001).	Director (since 2001) of iShares, Inc.; Bailard, Biehl and Kaiser, Inc. (since 1985); California Casualty Group of Insurance Companies (since 1978); Continental Airlines, Inc. (since 1996); Community First Financial Group (since 1995); Dresdner/RCM Mutual Funds (1994-2002); Tyon Ranch Company (since 1999).
W. Allen Reed (56)	Trustee (since January 1, 2002)	President and Chief Executive Officer (since 1994) of General Motors Investment Management Corporation.	Director (since 1996) of iShares, Inc.; Director (since 1994) of General Motors Investment Management Corporation; Director (1995-1998) of Taubman Centers, Inc. (a real estate investment trust); Director (since 1992) of FLIR Systems (an imaging technology company); Director (since 1994) of General Motors Acceptance Corporation; Director (since 1994) of GMAC Insurance Holdings, Inc.; Director (since 1995) of Global Emerging Markets Fund; Director (since 2000) of Temple Inland Industries; Chairman (since 1995) of the Investment Advisory Committee of Howard Hughs Medical Institute.

TRUSTEE INFORMATION 155

Trustee Information (Unaudited) (Continued)

iSHARES^® TRUST

Officer

Name and Age	Position(s), Length of Service	Principal Occupation(s) During Past 5 Years	Other Directorships Held
Michael A. Latham (38)	Secretary, Treasurer and Principal Financial Officer (since February 28, 2002)	Chief Operating Officer of the Intermediary Investor and Exchange Traded Products Business of BGI (since 2003), Director of Mutual Fund Delivery in the U.S. Individual Investor Business of BGI (2000-2003); Head of Operations, BGI Europe(1997-2000).	None.

156 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes:

NOTES 157

The iShares^® Family of Funds

The following is a list of iShares Funds being offered, along with their respective exchange trading symbols. Please call iShares at 1-800-iShares (1-800-474-2737) to obtain a prospectus for any iShares fund. The prospectus contains more complete information, including charges, expenses, investment objectives and risk factors which should be carefully considered to determine if the fund(s) are an appropriate investment for you. Read the prospectus(es) carefully before investing. Investing involves risk, including possible loss of principal.

iShares S&P Domestic Index Funds	iShares Russell Index Funds
S&P 1500 (ISI)	Russell 3000 (IWV)
S&P 500 (IVV)	Russell 3000 Growth (IWZ)
S&P 500/BARRA Growth (IVW)	Russell 3000 Value (IWW)
S&P 500/BARRA Value (IVE)	Russell 1000 (IWB)
S&P MidCap 400 (IJH)	Russell 1000 Growth (IWF)
S&P MidCap 400/BARRA Growth (IJK)	Russell 1000 Value (IWD)
S&P MidCap 400/BARRA Value (IJJ)	Russell Midcap (IWR)
S&P SmallCap 600 (IJR)	Russell Midcap Growth (IWP)
S&P SmallCap 600/BARRA Growth (IJT)	Russell Midcap Value (IWS)
S&P SmallCap 600/BARRA Value (IJS)	Russell 2000 (IWM)
S&P 100 (OEF)	Russell 2000 Growth (IWO)
	Russell 2000 Value (IWN)
iShares Sector and Specialty Index Funds
Cohen & Steers Realty Majors (ICF)	iShares Nyse Index Funds
Dow Jones U.S. Basic Materials Sector (IYM)	NYSE 100 (NY)
Dow Jones U.S. Consumer Cyclical Sector (IYC)	NYSE Composite (NYC)
Dow Jones U.S. Consumer Non-Cyclical Sector (IYK)
Dow Jones U.S. Energy Sector (IYE)	iShares International Index Funds
Dow Jones U.S. Financial Sector (IYF)	MSCI Australia (EWA)
Dow Jones U.S. Financial Services (IYG)	MSCI Austria (EWO)
Dow Jones U.S. Healthcare Sector (IYH)	MSCI Belgium (EWK)
Dow Jones U.S. Industrial Sector (IYJ)	MSCI Brazil (EWZ)
Dow Jones U.S. Real Estate (IYR)	MSCI Canada (EWC)
Dow Jones Select Dividend (DVY)	MSCI EAFE (EFA)
Dow Jones U.S. Technology Sector (IYW)	MSCI Emerging Markets (EEM)
Dow Jones U.S. Telecommunications Sector (IYZ)	MSCI EMU (EZU)
Dow Jones U.S. Total Market (IYY)	MSCI France (EWQ)
Dow Jones Transportation Average (IYT)	MSCI Germany (EWG)
Dow Jones U.S. Utilities Sector (IDU)	MSCI Hong Kong (EWH)
Goldman Sachs Natural Resources (IGE)	MSCI Italy (EWI)
Goldman Sachs Networking (IGN)	MSCI Japan (EWJ)
Goldman Sachs Semiconductor (IGW)	MSCI Malaysia (EWM)
Goldman Sachs Software (IGV)	MSCI Mexico (EWW)
Goldman Sachs Technology (IGM)	MSCI Netherlands (EWN)
Nasdaq Biotechnology (IBB)	MSCI Pacific ex-Japan (EPP)
S&P Global Energy Sector (IXC)	MSCI Singapore (EWS)
S&P Global Financials Sector (IXG)	MSCI South Africa (EZA)
S&P Global Healthcare Sector (IXJ)	MSCI South Korea (EWY)
S&P Global Technology Sector (IXN)	MSCI Spain (EWP)
S&P Global Telecommunications Sector (IXP)	MSCI Sweden (EWD)
	MSCI Switzerland (EWL)
iShares Bond Funds	MSCI Taiwan (EWT)
Lehman Aggregate (AGG)	MSCI United Kingdom (EWU)
Lehman TIPS (TIP)	S&P Europe 350 (IEV)
Lehman 1-3 Year Treasury (SHY)	S&P Global 100 (IOO)
Lehman 7-10 Year Treasury (IEF)	S&P Latin America 40 (ILF)
Lehman 20+ Year Treasury (TLT)	S&P/TOPIX 150 (ITF)
GS $ InvesTop™ Corporate (LQD)

An investment in the fund(s) is not insured or guaranteed by the federal Deposit Insurance Corporation or any other government agency.

iShares is a registered trademark of Barclays Global Investors, N.A. The iShares Funds are not sponsored, endorsed or issued by Goldman, Sachs & Co. or Lehman Brothers, nor are they sponsored, endorsed, issued, sold or promoted by Cohen & Steers Capital Management, Inc., Dow Jones & Company, Inc., Morgan Stanley Capital International, The Nasdaq Stock Market, Inc., New York Stock Exchange, Inc., Frank Russell Company, or Standard & Poor’s. None of these companies make any representation regarding the advisability of investing in the iShares Funds. Neither SEI nor BGI, nor any of their affiliates, are affiliated with Goldman, Sachs & Co. or Lehman Brothers. “GS $ InvesTop^™” and “Goldman Sachs^®” are trademarks of Goldman, Sachs & Co.

This advertising section does not constitute part of the 2004 Annual Report.

158 2004 iSHARES ANNUAL REPORT TO SHAREHOLDERS

The iShares Funds are distributed by SEI Investments Distributions Co. (SEI). Barclays Global Fund Advisors (BGFA) serves as an advisor to the iShares Funds. Barclays Global Investors Services (BGIS) assists in the marketing of the iShares Funds. BGFA and BGIS are subsidiaries of Barclays Global Investors, N.A., a wholly owned subsidiary of Barclays Bank PLC, none of which is affiliated with SEI.

The iShares Funds are not sponsored, endorsed, issued, sold or promoted by Frank Russell Company, nor does this company make any representation regarding the advisability of investing in the iShares Funds.

Investing involves risk, including possible loss of principal.

© 2004 Barclays Global Investors. All rights reserved. iShares is a registered trademark of Barclays Global Investors, N.A. All other trademarks, service marks or registered trademarks are the property of their respective owners.

A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling toll-free 1 800 474 2737; on the Funds’ website at www.iShares.com; and on the Securities and Exchange Commission’s website at www.sec.gov.

This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current prospectus.

iShares^® Industrial strength investment tools from BARCLAYS GLOBAL INVESTORS

1 800 iSHARES (1 800 474 2737) WWW.iSHARES.COM

[GRAPHIC APPEARS HERE]

Item 1. Reports to Stockholders.

Copies of the annual reports transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940 are attached.

Item 2. Code of Ethics.

As of March 31, 2004, iShares Trust (the “Registrant”) had adopted a code of ethics that applies to persons appointed by the Registrant’s Board of Trustees as the Chief Executive Officer, President, Chief Financial Officer, Treasurer and/or Chief Accounting Officer, and any persons performing similar functions. For the year ended March 31, 2004, there were no amendments to any provision of this code of ethics, nor were there any waivers granted from any provision of this code of ethics. A copy of this code of ethics is filed with this Form N-CSR under Item 11(a)(1).

Item 3. Audit Committee Financial Expert.

The Registrant’s Board of Trustees has determined that the Registrant has more than one audit committee financial expert, as that term is defined under Item 3(b) and 3(c), serving on its audit committee. The audit committee financial experts serving on the Registrant’s audit committee are John B. Carroll, Richard K. Lyons, George C. Parker and W. Allen Reed, all of whom are independent, as that term is defined under Item 3(a)(2). Richard K. Lyons holds a PhD in Economics and qualifies as an audit committee financial expert through his many years of university-level (graduate) teaching of accounting and finance-related subjects, his many years of research in the same subjects (including mutual funds), and his extensive experience serving as independent director and as a member of various mutual fund audit committees.

Item 4. Principal Accountant Fees and Services.

The principal accountant fees disclosed in items 4(a), 4(b), 4(c), and 4(d) relate to the thirty-three series of the Registrant for which the fiscal year-end is March 31, 2004 (the “Funds”), and whose annual financial statements are reported in Item 1.

(a) Audit Fees – The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the Funds’ annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years, were $301,500 and $376,500 for the fiscal years ended March 31, 2003 and March 31, 2004, respectively.

(b) Audit-Related Fees – There were no fees billed for the fiscal years ended March 31, 2003 and March 31, 2004 for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the Funds’ financial statements and are not reported under (a) of this Item.

(c) Tax Fees – The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for the review of the Funds’ tax returns and excise tax calculations, were $174,118 and $178,200 for the fiscal years ended March 31, 2003 and March 31, 2004, respectively. A small portion of the aggregate fees billed for the fiscal year ended March 31, 2003 were for services rendered in relation to the closing of the iShares S&P/TSE 60 Index Fund, a series of the Registrant, which was closed in December 2002.

(d) All Other Fees – There were no other fees billed for the fiscal years ended March 31, 2003 and March 31, 2004 for products and services provided by the principal accountant, other than the services reported in (a) through (c) of this Item.

(e) (1) The Registrant’s audit committee charter, as amended in September 2003, provides that the audit committee is responsible for the approval, prior to appointment, of the engagement of the principal accountant to annually audit and provide their opinion on the Registrant’s financial statements. The audit committee must also approve, prior to appointment, the engagement of the principal accountant to provide non-audit services to the Registrant or to any entity controlling, controlled by or under common control with the Registrant’s investment adviser (“Adviser Affiliate”) that provides services to the Registrant, if the engagement relates directly to the operations and financial reporting of the Registrant.

(2) There were no services described in (b) through (d) above (including services required by the audit committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X) that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

(f) None of the hours expended on the principal accountant’s engagement to audit the Funds’ financial statements for the fiscal year ended March 31, 2004 were attributable to work performed by persons other than the principal accountant’s full-time, permanent employees.

(g) The aggregate non-audit fees billed by the Registrant’s principal accountant for services rendered to the Funds, and rendered to the Registrant’s investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the Registrant for the fiscal years ended March 31, 2003 and March 31, 2004 were $1,913,482, and $589,470, respectively.

(h) The Registrant’s audit committee has considered whether the provision of non-audit services rendered to the Registrant’s investment adviser and any Adviser Affiliate that were not pre-approved pursuant to paragraph

(c)(7)(ii) of Rule 2-01 of Regulation S-X, if any, are compatible with maintaining the principal accountant’s independence, and has determined that the provision of these services do not compromise the principal accountant’s independence.

Item 5. Audit Committee of Listed Registrants.

Not applicable to this filing.

Item 6. Schedule of Investments.

Not applicable to this filing.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable to the Registrant.

Item 8. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable to the Registrant.

Item 9. Submission of Matters to a Vote of Security Holders.

Not applicable.

Item 10. Controls and Procedures.

(a) The President and Principal Financial Officer have concluded that, based on their evaluation as of a date within 90 days of the filing date of this report, the disclosure controls and procedures of the Registrant (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) are reasonably designed to achieve the purposes described in the attached certification, Section 4 (a).

(b) Not applicable.

Item 11. Exhibits.

(a) (1) Code of Ethics for Senior Officers that is the subject of Item 2 is attached.

(a) (2) Section 302 Certifications are attached.

(b) Section 906 Certifications are attached.

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

iShares Trust
By:	/s/    Lee T. Kranefuss
Lee T. Kranefuss, President Date: July 16, 2004

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

By:	/s/    Lee T. Kranefuss
Lee T. Kranefuss, President Date: July 16, 2004

By:	/s/     Michael A. Latham
Michael A. Latham, Principal Financial Officer Date: July 16, 2004