N-Q 1 dnq.htm FORM N-Q FOR ISHARES TRUST Form N-Q for iShares Trust

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM N-Q

 

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

 

Investment Company Act file number 811-09729

 

 

iShares Trust

(Exact name of Registrant as specified in charter)

 

 

c/o Investors Bank & Trust Company

200 Clarendon Street, Boston, MA

(Address of principal executive offices)
02116-5021
(Zip code)

 

The Corporation Trust Company

1209 Orange Street, Wilmington, DE 19801

(Name and address of agent for service)

 

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

 

Date of fiscal year end: April 30, 2005

 

Date of reporting period: July 31, 2004

 

Item 1. Schedule of Investments

 

Schedule of Investments (Unaudited)

iSHARES® COHEN & STEERS REALTY MAJORS INDEX FUND

July 31, 2004

 

Security

    Shares
    Value

COMMON STOCKS—99.94%

            

REAL ESTATE INVESTMENT TRUSTS—99.94%

            

AMB Property Corp.

    575,377    $ 20,218,748

Archstone-Smith Trust

    1,363,751      40,135,192

Arden Realty Group Inc. (1)

    454,991      13,831,726

AvalonBay Communities Inc. (1)

    497,849      28,974,812

Boston Properties Inc. (1)

    746,691      39,499,954

CarrAmerica Realty Corp. (1)

    373,245      11,380,240

Catellus Development Corp. (1)

    715,589      17,889,725

CenterPoint Properties Trust (1)

    323,398      12,412,015

Chelsea Property Group Inc.

    306,765      19,976,537

Cousins Properties Inc. (1)

    341,105      10,959,704

Developers Diversified Realty Corp. (1)

    708,841      25,433,215

Duke Realty Corp. (1)

    951,534      29,269,186

Equity Office Properties Trust

    2,509,652      65,125,469

Equity Residential (1)

    1,940,382      57,338,288

Essex Property Trust Inc. (1)

    159,391      10,503,867

General Growth Properties Inc.

    1,516,938      45,629,495

Health Care Property Investors Inc. (1)

    916,174      22,867,703

Host Marriott Corp. (1) (2)

    2,433,304      31,511,287

Kimco Realty Corp. (1)

    773,610      37,210,641

Liberty Property Trust

    586,708      22,529,587

Macerich Co. (The)

    410,407      19,658,495

Pan Pacific Retail Properties Inc.

    281,119      14,224,621

ProLogis

    1,255,176      42,726,191

Public Storage Inc. (1)

    890,963      41,991,086

Reckson Associates Realty Corp. (1)

    404,407      11,206,118

Rouse Co. (The) (1)

    715,068      34,895,318

Simon Property Group Inc.

    1,348,019      69,571,261

SL Green Realty Corp.

    268,550      13,185,805

Vornado Realty Trust (1)

    842,175      48,921,946

Weingarten Realty Investors (1)

    596,152      18,361,482
         
            877,439,714

TOTAL COMMON STOCKS
(Cost: $795,040,119)

           877,439,714
         

Security

    Shares or Principal
    Value

SHORT-TERM INVESTMENTS—9.50%

            

MONEY MARKET FUNDS—2.38%

            

Barclays Global Investors Funds Institutional

Money Market Fund, Institutional Shares (3) (5)

    13,020,204      13,020,204

Barclays Global Investors Funds Prime Money Market Fund, Institutional Shares (3) (5)

    7,029,145    7,029,145

BlackRock Temp Cash Money Market Fund (3)

    322,584    322,584

Short-Term Investment Co. - Prime Money Market Portfolio (3)

    549,781    549,781
         
          20,921,714

FLOATING RATE NOTES—2.30%

          

Beta Finance Inc.

          

1.30%, 05/04/05 (3) (4)

    383,408    383,350

1.31%, 10/12/04 (3) (4)

    319,507    319,500

1.34%, 09/15/04 (3) (4)

    639,013    639,006

1.42%, 03/15/05 (3) (4)

    319,507    319,665

1.48%, 08/23/04 (3) (4)

    319,507    319,522

Canadian Imperial Bank of Commerce

          

1.24%, 10/07/04 (3)

    479,260    479,247

1.38%, 11/22/04 (3)

    159,753    159,757

1.40%, 10/29/04 (3)

    639,013    639,009

CC USA Inc.

          

1.30%, 05/04/05 (3) (4)

    639,013    638,917

1.61%, 07/29/05 (3) (4)

    639,013    638,823

Depfa Bank PLC

          

1.27%, 06/15/05 (3)

    639,013    639,013

Dorada Finance Inc.

          

1.61%, 07/29/05 (3) (4)

    530,381    530,223

Five Finance Inc.

          

1.42%, 04/29/05 (3) (4)

    511,211    511,173

HBOS Treasury Services PLC

          

1.24%, 04/01/05 (3)

    408,968    408,941

1.58%, 04/22/05 (3)

    639,013    639,013

K2 USA LLC

          

1.34%, 08/16/04 (3) (4)

    159,753    159,752

1.41%, 09/27/04 (3) (4)

    690,134    690,118

1.49%, 06/10/05 (3) (4)

    639,013    638,946

1.61%, 07/25/05 (3) (4)

    319,507    319,444

Links Finance LLC

          

1.33%, 04/15/05 (3)

    639,013    638,924

1.68%, 04/25/05 (3)

    639,013    639,316

Nationwide Building Society

          

1.59%, 07/28/05 (3) (4)

    639,013    639,013

1.63%, 12/09/04 (3)

    530,381    527,283

Northern Rock PLC

          

1.56%, 01/13/05 (3) (4)

    607,063    607,063

Permanent Financing PLC

          

1.31%, 03/10/05 (3)

    639,013    639,013

1.32%, 12/10/04 (3)

    319,507    319,507

1.34%, 06/10/05 (3)

    287,556    287,556

Sigma Finance Inc.

          

1.35%, 11/15/04 (3)

    639,013    638,999

1.52%, 10/07/04 (3)

    639,013    638,990

Tango Finance Corp.

          

1.20%, 05/17/05 (3) (4)

    530,381    530,360

1.23%, 02/25/05 (3) (4)

    357,847    357,807

1.32%, 04/07/05 (3) (4)

    234,518    234,502

1.34%, 01/18/05 (3) (4)

    281,166    281,153

1.42%, 07/25/05 (3) (4)

    639,013    638,951

WhistleJacket Capital LLC

          

1.26%, 10/20/04 (3) (4)

    158,284    157,846

1.34%, 09/15/04 (3) (4)

    319,507    319,499

1.38%, 07/15/05 (3) (4)

    479,260    479,167

1.48%, 06/15/05 (3) (4)

    319,507    319,443

White Pine Finance LLC

          

1.21%, 05/20/05 (3) (4)

    287,556    287,533

1.33%, 04/15/05 (3) (4)

    479,260    479,193

1.33%, 07/05/05 (3) (4)

    319,507    319,442

1.34%, 11/15/04 (3) (4)

    383,408    383,408

1.35%, 06/15/05 (3) (4)

    261,995    261,996

1.40%, 08/26/04 (3) (4)

    319,507    319,503

1.55%, 07/11/05 (3) (4)

    159,753    159,736
         
          20,178,622

COMMERCIAL PAPER—1.73%

          

Alpine Securitization Corp.

          

1.31%, 08/12/04 (3)

    319,507    319,390

Amsterdam Funding Corp.

          

1.30%, 08/13/04 (3)

    479,260    479,070

1.33%, 08/16/04 (3)

    639,013    638,683

1.35%, 08/20/04 (3)

    191,704    191,575

1.37%, 08/24/04 (3)

    223,655    223,467

Barton Capital Corp.

          

1.29%, 08/10/04 (3)

    319,507    319,416

1.30%, 08/13/04 (3)

    262,647    262,543

1.35%, 08/18/04 (3)

    159,753    159,657

Blue Ridge Asset Funding Corp.

          

1.29%, 08/06/04 (3)

    319,507    319,461

Corporate Asset Funding

          

1.42%, 09/03/04 (3)

    191,704    191,462

CRC Funding LLC

          

1.42%, 09/03/04 (3)

    319,507    319,104

Edison Asset Securitization

          

1.07%, 09/21/04 (3)

    319,507    319,032

1.45%, 11/09/04 (3)

    639,013    636,465

1.59%, 12/02/04 (3)

    639,013    635,570

Falcon Asset Securitization Corp.

          

1.29%, 08/09/04 (3)

    607,063    606,910

1.30%, 08/03/04 (3)

    319,507    319,496

1.34%, 08/19/04 (3)

    319,507    319,304

1.37%, 08/24/04 (3)

    255,605    255,391

Ford Credit Auto Receivables

          

1.85%, 01/14/05 (3)

    319,507    316,797

GIRO Funding US Corp.

          

1.55%, 10/15/04 (3)

    419,033    417,698

Grampian Funding LLC

          

1.26%, 10/22/04 (3)

    639,013    637,209

1.44%, 10/27/04 (3)

    639,013    636,815

1.59%, 11/30/04 (3)

    319,507    317,814

Jupiter Securitization Corp.

          

1.30%, 08/12/04 (3)

    319,507    319,391

1.37%, 08/20/04 (3)

    427,506    427,213

Park Avenue Receivables Corp.

          

1.35%, 08/19/04 (3)

    319,507    319,303

Preferred Receivables Funding Corp.

          

1.29%, 08/05/04 (3)

    295,147    295,116

1.36%, 08/23/04 (3)

    319,507    319,253

Receivables Capital Corp.

          

1.30%, 08/12/04 (3)

    223,655    223,574

1.34%, 08/16/04 (3)

    38,213    38,193

1.35%, 08/18/04 (3)

    287,556    287,384

 

1.35%, 08/19/04 (3)

    108,632    108,563

Scaldis Capital LLC

          

1.34%, 08/16/04 (3)

    639,013    638,680

1.37%, 08/20/04 (3)

    95,852    95,786

1.40%, 08/25/04 (3)

    798,766    798,052

Sydney Capital Corp.

          

1.25%, 10/22/04 (3)

    212,664    212,065

1.31%, 08/12/04 (3)

    255,605    255,512

Thames Asset Global Securitization No. 1 Inc.

          

1.30%, 08/12/04 (3)

    337,233    337,111

1.34%, 08/16/04 (3)

    178,924    178,830

1.36%, 08/20/04 (3)

    479,260    478,934

1.37%, 08/19/04 (3)

    178,496    178,380

1.37%, 08/20/04 (3)

    83,072    83,015

Windmill Funding Corp.

          

1.29%, 08/06/04 (3)

    798,766    798,652
         
          15,235,336

TIME DEPOSITS—1.52%

          

Abbey National Treasury Services PLC

          

1.25%, 01/06/05 (3)

    639,013    639,013

1.33%, 02/10/05 (3)

    319,507    319,481

1.39%, 02/02/05 (3)

    319,507    319,482

1.39%, 04/08/05 (3)

    447,309    447,263

1.40%, 10/25/04 (3)

    639,013    638,991

Bank of New York

          

1.39%, 11/01/04 (3)

    639,013    638,997

1.60%, 12/03/04 (3)

    159,753    159,726

Bank of Nova Scotia

          

1.13%, 10/06/04 (3)

    639,013    639,013

1.24%, 10/07/04 (3)

    479,260    479,251

1.42%, 10/29/04 (3)

    479,260    479,269

National City Bank (Cleveland, Ohio)

          

1.25%, 01/06/05 (3)

    639,013    639,027

1.35%, 06/10/05 (3)

    319,507    319,592

1.36%, 06/23/05 (3)

    639,013    638,842

Norddeutsche Landesbank

          

1.59%, 07/27/05 (3)

    639,013    638,792

Nordea Bank PLC

          

2.11%, 06/07/05 (3)

    639,013    638,906

Prudential Funding LLC

          

1.60%, 12/01/04 (3)

    319,507    317,788

Toronto-Dominion Bank

          

1.22%, 03/23/05 (3)

    1,118,273    1,118,148

1.34%, 02/10/05 (3)

    255,605    255,586

1.41%, 11/01/04 (3)

    479,260    479,248

1.77%, 05/10/05 (3)

    319,507    319,482

1.90%, 05/11/05 (3)

    319,507    319,482

UBS Finance (Delaware)

          

1.10%, 09/08/04 (3)

    639,013    638,291

1.11%, 12/17/04 (3)

    958,520    954,471

1.13%, 08/09/04 (3)

    639,013    638,873

1.14%, 09/29/04 (3)

    639,013    637,845
         
          13,314,859

REPURCHASE AGREEMENTS—0.92%

          

Banc of America Securities LLC

          

1.34%, 08/02/04 (3) (6)

    1,661,435    1,661,435

Bank of America, N.A.

              

1.37%, 08/02/04 (3) (6)

    3,195,066      3,195,066  

Goldman Sachs & Co.

              

1.37%, 08/02/04 (3) (6)

    3,195,066      3,195,066  
         
            8,051,567  

U.S. GOVERNMENT AGENCY NOTES—0.39%

              

Federal Home Loan Mortgage Corp.

              

1.28%, 08/19/04 (3)

    255,605      255,451  

1.63%, 04/15/05 (3)

    447,309      448,311  

1.80%, 01/18/05 (3)

    297,141      294,630  

1.80%, 01/19/05 (3)

    319,507      316,791  

2.06%, 05/31/05 (3)

    318,567      313,062  

Federal National Mortgage Association

              

1.28%, 08/20/04 (3)

    830,717      830,185  

2.33%, 07/22/05 (3)

    958,520      936,606  
         
            3,395,036  

MEDIUM-TERM NOTES—0.26%

              

CC USA Inc.

              

1.29%, 04/15/05 (3) (4)

    639,013      638,968  

1.51%, 02/15/05 (3) (4)

    415,359      415,708  

Dorada Finance Inc.

              

1.24%, 08/09/04 (3) (4)

    159,753      159,753  

1.48%, 01/18/05 (3) (4)

    479,260      479,249  

K2 USA LLC

              

1.46%, 01/12/05 (3) (4)

    319,507      319,492  

Sigma Finance Inc.

              

1.24%, 08/06/04 (3)

    159,753      159,753  

WhistleJacket Capital LLC

              

1.32%, 02/04/05 (3) (4)

    159,753      159,737  
         
            2,332,660  

TOTAL SHORT-TERM INVESTMENTS
(Cost: $83,429,794)

           83,429,794  
         

TOTAL INVESTMENTS IN SECURITIES — 109.44%
(Cost: $878,469,913) (7)

           960,869,508  

Other Assets, Less Liabilities — (9.44%)

           (82,909,592 )
         

NET ASSETS — 100.00%

         $ 877,959,916  
         
(1) All or a portion of this security represents a security on loan.
(2) Non-income earning security.
(3) All or a portion of this security represents an investment of securities lending collateral.
(4) Security exempt from registration pursuant to Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.
(5) Issuer is an affiliate of the Fund’s investment adviser.

(6) Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 3.61% to 7.00% and maturity dates ranging from 7/1/13 to 7/1/34.
(7) The cost of investments for federal income tax purposes was $884,590,801. Net unrealized appreciation aggregated $76,278,707, of which $81,166,511 represented gross unrealized appreciation on securities and $4,887,804 represented gross unrealized depreciation on securities.

Schedule of Investments (Unaudited)

iSHARES® DOW JONES U.S. TOTAL MARKET INDEX FUND

July 31, 2004

 

Security

    Shares
    Value

COMMON STOCKS—99.88%

            

ADVERTISING—0.26%

            

ADVO Inc.

    1,056    $ 32,725

Catalina Marketing Corp. (1) (2)

    1,419      28,337

Donnelley (R.H.) Corp. (1)

    1,015      46,061

Getty Images Inc. (1) (2)

    1,478      80,728

Harte-Hanks Inc.

    1,773      42,836

Interpublic Group of Companies Inc. (1)

    13,993      178,970

Lamar Advertising Co. (1) (2)

    2,717      109,251

Omnicom Group Inc.

    6,145      442,563

ValueVision Media Inc. Class A (1) (2)

    995      11,502
         
            972,973

AEROSPACE & DEFENSE—1.52%

            

AAR Corp. (1) (2)

    1,012      10,523

Alliant Techsystems Inc. (1)

    1,159      72,971

Boeing Co. (The)

    24,592      1,248,044

Curtiss-Wright Corp. Class B

    128      6,579

Engineered Support Systems Inc. (2)

    776      43,510

Esterline Technologies Corp. (1)

    727      22,821

General Dynamics Corp.

    5,455      539,063

Goodrich (B.F.) Co.

    3,891      125,796

Kaman Corp. Class A

    735      9,143

L-3 Communications Holdings Inc.

    3,413      208,705

Lockheed Martin Corp.

    11,704      620,195

Northrop Grumman Corp.

    11,190      588,594

Raytheon Co.

    13,748      461,245

Rockwell Collins Inc.

    5,324      182,187

Titan Corp. (The) (1)

    2,682      32,104

United Defense Industries Inc. (1)

    821      28,448

United Technologies Corp.

    16,845      1,575,007
         
            5,774,935

AGRICULTURE—1.10%

            

Altria Group Inc.

    67,092      3,193,579

Bunge Ltd.

    3,633      145,792

Delta & Pine Land Co. (2)

    1,156      25,952

Loews Corp - Carolina Group

    1,890      44,906

Monsanto Co.

    8,704      315,607

R.J. Reynolds Tobacco Holdings Inc. (2)

    2,727      196,208

Universal Corp.

    853      41,140

UST Inc.

    5,478      207,890
         
            4,171,074
             

AIRLINES—0.15%

            

AirTran Holdings Inc. (1) (2)

    2,937      32,748

Alaska Air Group Inc. (1) (2)

    868      18,080

AMR Corp. (1) (2)

    5,086      42,875

Atlantic Coast Airlines Holdings Inc. (1) (2)

    1,303      4,782

Continental Airlines Inc. Class B (1) (2)

    2,024      18,196

Delta Air Lines Inc. (1) (2)

    3,623      18,803

JetBlue Airways Corp. (1) (2)

    2,772      66,001

Northwest Airlines Corp. (1) (2)

    1,853      15,991

SkyWest Inc. (2)

    2,000      28,260

Southwest Airlines Co.

    23,506      340,132
         
            585,868

APPAREL—0.39%

            

Coach Inc. (1)

    6,060      259,307

Jones Apparel Group Inc.

    4,150      155,002

Kellwood Co.

    843      33,846

Liz Claiborne Inc.

    3,748      135,640

Nike Inc. Class B

    6,045      439,532

Phillips-Van Heusen Corp. (2)

    856      16,238

Polo Ralph Lauren Corp.

    1,719      56,658

Quiksilver Inc. (1)

    1,986      42,818

Reebok International Ltd.

    1,601      54,530

Russell Corp.

    854    15,107

Stride Rite Corp.

    1,465    15,236

Timberland Co. Class A (1)

    760    44,110

Tommy Hilfiger Corp. (1)

    2,765    38,710

Unifi Inc. (1)

    1,896    5,423

VF Corp.

    2,779    138,978

Wolverine World Wide Inc.

    1,282    29,973
         
          1,481,108

AUTO MANUFACTURERS—0.53%

          

Ford Motor Co.

    57,418    845,193

General Motors Corp.

    15,034    648,567

Navistar International Corp. (1)

    2,049    73,662

Oshkosh Truck Corp. (2)

    1,160    61,445

PACCAR Inc.

    5,679    340,513

Wabash National Corp. (1) (2)

    871    25,154
         
          1,994,534

AUTO PARTS & EQUIPMENT—0.29%

          

American Axle & Manufacturing Holdings Inc.

    900    30,915

ArvinMeritor Inc. (2)

    2,193    43,575

BorgWarner Inc.

    1,750    82,582

Cooper Tire & Rubber Co.

    2,474    58,015

Dana Corp.

    4,932    95,138

Delphi Corp.

    16,053    152,664

Goodyear Tire & Rubber Co. (The) (1) (2)

    5,503    60,258

Johnson Controls Inc.

    6,214    350,780

Lear Corp.

    2,324    128,122

Modine Manufacturing Co. (2)

    996    29,541

Superior Industries International Inc. (2)

    713    23,308

Tower Automotive Inc. (1) (2)

    2,030    6,394

Visteon Corp. (2)

    4,359    44,811
         
          1,106,103

BANKS—6.61%

          

AMCORE Financial Inc.

    872    24,634

AmSouth Bancorp

    11,551    283,346

Associated Bancorp

    3,475    104,632

BancorpSouth Inc.

    2,420    51,110

Bank of America Corp.

    66,668    5,667,447

Bank of Hawaii Corp.

    1,714    77,010

Bank of New York Co. Inc. (The)

    25,270    726,007

Banknorth Group Inc. (2)

    5,763    183,897

BB&T Corp.

    18,125    701,981

Cathay General Bancorp

    816    54,680

Charter One Financial Inc.

    7,344    326,147

Chittenden Corp. (2)

    1,136    38,590

Citizens Banking Corp. (2)

    1,314    41,260

City National Corp.

    1,326    85,527

Colonial BancGroup Inc. (The)

    4,040    77,932

Comerica Inc.

    5,186    303,225

Commerce Bancorp Inc. (2)

    2,593    130,532

Commerce Bancshares Inc.

    2,137    99,606

Community First Bankshares Inc.

    1,288    41,474

Compass Bancshares Inc.

    4,033    177,815

Cullen/Frost Bankers Inc. (2)

    1,717    73,865

East West Bancorp Inc.

    1,688    56,919

Fifth Third Bancorp

    15,533    766,709

First Bancorp

    1,137    48,266

First Horizon National Corp.

    3,974    172,273

First Midwest Bancorp Inc.

    1,597    53,931

First National Bankshares of Florida (2)

    1,597    28,411

FirstMerit Corp. (2)

    2,483    64,409

FNB Corp. (2)

    1,551    31,222

Fremont General Corp. (2)

    2,167    40,696

Fulton Financial Corp. (2)

    4,384    89,916

Greater Bay Bancorp (2)

    1,678    44,215

Hibernia Corp. Class A

    5,117    129,460

Hudson United Bancorp

    1,457    49,902

Huntington Bancshares Inc.

    6,938    169,703

Investors Financial Services Corp. (2)

    2,076    94,832

KeyCorp

    13,315    401,847

M&T Bank Corp.

    2,978    277,639

Marshall & Ilsley Corp.

    6,737    258,768

Mellon Financial Corp.

    13,868    381,093

Mercantile Bankshares Corp.

    2,650    120,336

National City Corp.

    19,829    723,759

National Commerce Financial Corp.

    6,679    217,067

North Fork Bancorp Inc. (2)

    5,688    222,116

Northern Trust Corp.

    6,797    272,764

 

Old National Bancorp

    2,171    51,670

Pacific Capital Bancorp

    1,281    35,509

Park National Corp. (2)

    389    45,793

PNC Financial Services Group

    9,238    467,443

Popular Inc.

    8,150    185,331

Provident Bankshares Corp.

    1,203    35,958

Regions Financial Corp.

    15,163    450,189

Republic Bancorp Inc. (2)

    2,334    34,193

Silicon Valley Bancshares (1) (2)

    1,188    43,493

Sky Financial Group Inc.

    3,588    83,780

South Financial Group Inc. (The) (2)

    2,252    61,007

SouthTrust Corp.

    10,869    421,609

Southwest Bancorp of Texas Inc. (2)

    2,028    41,270

State Street Corp.

    11,057    473,350

Sterling Bancshares Inc. (2)

    1,462    19,064

SunTrust Banks Inc.

    8,794    579,964

Susquehanna Bancshares Inc.

    1,609    37,441

Synovus Financial Corp.

    8,325    212,038

TCF Financial Corp.

    2,183    131,853

Texas Regional Bancshares Inc. Class A

    984    43,778

TrustCo Bank Corp. NY (2)

    2,277    28,781

Trustmark Corp.

    1,729    49,709

U.S. Bancorp

    62,101    1,757,458

UCBH Holdings Inc. (2)

    1,414    55,273

UnionBanCal Corp.

    1,603    93,054

United Bancshares Inc.

    1,303    41,071

Valley National Bancorp (2)

    3,349    83,323

W Holding Co. Inc.

    2,707    44,665

Wachovia Corp.

    43,070    1,908,432

Wells Fargo & Co.

    55,240    3,171,328

Westamerica Bancorp (2)

    1,049    53,216

Whitney Holding Corp. (2)

    1,297    52,995

Wilmington Trust Corp.

    2,195    76,605

Zions Bancorporation

    2,944    178,112
         
          25,035,725

BEVERAGES—2.10%

          

Anheuser-Busch Companies Inc.

    26,203    1,359,936

Brown-Forman Corp. Class B

    1,283    59,672

Coca-Cola Co. (The)

    73,260    3,213,184

Coca-Cola Enterprises Inc.

    8,262    168,545

Constellation Brands Inc. (1)

    3,135    118,754

Coors (Adolph) Co. Class B (2)

    877    60,303

Pepsi Bottling Group Inc.

    5,091    141,784

PepsiAmericas Inc. (2)

    2,605    48,896

PepsiCo Inc.

    55,882    2,794,100

Robert Mondavi Corp. (The) Class A (1) (2)

    288    9,991
         
          7,975,165

BIOTECHNOLOGY—1.46%

          

Affymetrix Inc. (1) (2)

    1,870    50,509

Alexion Pharmaceuticals Inc. (1)

    586    9,329

Amgen Inc. (1)

    41,646    2,368,824

Applera Corp. - Celera Genomics Group (1) (2)

    2,307    27,084

Biogen Idec Inc. (1)

    11,068    664,080

Bio-Rad Laboratories Inc. Class A (1)

    474    24,838

Cambrex Corp.

    861    18,985

Celgene Corp. (1)

    2,739    146,071

Cell Genesys Inc. (1)

    1,163    8,385

Charles River Laboratories International Inc. (1)

    1,460    65,802

Chiron Corp. (1)

    3,636    166,638

CuraGen Corp. (1) (2)

    1,303    6,932

Enzo Biochem Inc. (1) (2)

    761    10,380

Enzon Pharmaceuticals Inc. (1)

    1,441    17,883

Gene Logic Inc. (1)

    874    3,400

Genentech Inc. (1)

    14,384    700,213

Genzyme Corp. (1)

    7,398    379,369

Human Genome Sciences Inc. (1) (2)

    4,220    42,306

ICOS Corp. (1) (2)

    1,891    45,497

Immunomedics Inc. (1) (2)

    1,316    5,264

Incyte Corp. (1) (2)

    2,175    13,376

InterMune Inc. (1)

    1,011    12,122

Invitrogen Corp. (1)

    1,714    89,951

Lexicon Genetics Inc. (1) (2)

    1,850    11,211

Martek Biosciences Corp. (1)

    932    44,102

Maxygen Inc. (1) (2)

    1,004    9,950

MedImmune Inc. (1)

    8,256    190,218

Millennium Pharmaceuticals Inc. (1)

    9,095    101,136

Millipore Corp. (1)

    1,592    83,882

Myriad Genetics Inc. (1) (2)

    724    9,919

 

Nektar Therapeutics (1) (2)

    2,865    50,252

Praecis Pharmaceuticals Inc. (1) (2)

    1,883    4,576

Protein Design Labs Inc. (1) (2)

    3,183    51,565

Regeneron Pharmaceuticals Inc. (1) (2)

    1,139    9,750

Savient Pharmaceuticals Inc. (1) (2)

    1,875    3,919

Telik Inc. (1)

    1,252    24,740

Transkaryotic Therapies Inc. (1)

    1,002    14,940

Vertex Pharmaceuticals Inc. (1)

    2,467    22,770

XOMA Ltd. (1) (2)

    2,329    8,478
         
          5,518,646

BUILDING MATERIALS—0.29%

          

American Standard Companies Inc. (1)

    5,817    220,406

Eagle Materials Inc. (2)

    257    16,957

Eagle Materials Inc. Class B

    303    19,695

ElkCorp.

    581    12,683

Florida Rock Industries Inc.

    1,320    56,668

Lafarge North America Inc.

    1,007    42,183

Martin Marietta Materials Inc. (2)

    1,596    69,825

Masco Corp.

    14,180    428,803

Texas Industries Inc.

    720    30,838

USG Corp. (1) (2)

    889    15,326

Vulcan Materials Co.

    2,725    129,764

York International Corp.

    1,296    46,112
         
          1,089,260

CHEMICALS—1.55%

          

Air Products & Chemicals Inc.

    6,997    362,095

Airgas Inc.

    2,174    47,284

Albemarle Corp.

    1,160    35,728

Ashland Inc.

    2,342    122,416

Cabot Corp.

    2,008    76,465

Cabot Microelectronics Corp. (1) (2)

    864    30,663

Crompton Corp.

    3,906    23,319

Cytec Industries Inc.

    1,145    53,357

Dow Chemical Co. (The)

    30,576    1,219,677

Du Pont (E.I.) de Nemours and Co.

    32,592    1,397,219

Eastman Chemical Co.

    2,481    110,851

Ecolab Inc.

    6,081    185,470

Engelhard Corp.

    4,185    123,039

Ferro Corp.

    1,422    28,312

FMC Corp. (1) (2)

    1,217    53,487

Fuller (H.B.) Co. (2)

    886    23,683

Georgia Gulf Corp. (2)

    1,144    40,669

Great Lakes Chemical Corp. (2)

    1,504    36,066

Hercules Inc. (1)

    3,336    39,398

IMC Global Inc. (2)

    3,488    47,611

International Flavors & Fragrances Inc.

    2,748    100,412

Lubrizol Corp.

    1,700    58,871

Lyondell Chemical Co. (2)

    4,882    88,755

MacDermid Inc.

    707    20,687

Millennium Chemicals Inc. (1) (2)

    2,028    35,794

Minerals Technologies Inc. (2)

    700    39,109

Olin Corp.

    2,492    43,062

OM Group Inc. (1)

    881    28,210

PPG Industries Inc.

    5,654    333,303

Praxair Inc.

    10,544    415,961

Rohm & Haas Co.

    4,734    185,573

RPM International Inc.

    3,782    56,919

Schulman (A.) Inc.

    1,042    21,694

Sensient Technologies Corp.

    1,450    29,928

Sherwin-Williams Co. (The)

    3,919    158,249

Sigma-Aldrich Corp.

    1,874    107,643

Valspar Corp. (The) (2)

    1,591    77,959

Wellman Inc.

    1,154    8,124
         
          5,867,062

COAL—0.09%

          

Arch Coal Inc.

    1,758    59,368

CONSOL Energy Inc.

    2,827    101,320

Massey Energy Co. (2)

    2,468    68,240

Peabody Energy Corp.

    2,068    116,180
         
          345,108

COMMERCIAL SERVICES—1.42%

          

Accenture Ltd. (1)

    14,198    349,697

Albany Molecular Research Inc. (1) (2)

    724    8,601

Alliance Data Systems Corp. (1)

    1,465    58,175

Apollo Group Inc. Class A (1)

    4,593    383,745

ARAMARK Corp. Class B

    2,114    56,697

Arbitron Inc. (1)

    1,010    34,774

Banta Corp.

    864    34,309

BearingPoint Inc. (1)

    4,891    40,400

Block (H & R) Inc.

    5,277    259,259

Bowne & Co. Inc. (2)

    1,167    17,377

Career Education Corp. (1)

    3,199    108,158

Cendant Corp.

    33,163    758,769

Chemed Corp.

    288    13,478

ChoicePoint Inc. (1)

    2,873    120,666

Convergys Corp. (1)

    4,657    61,659

Corinthian Colleges Inc. (1) (2)

    2,930    54,850

Corporate Executive Board Co. (The)

    1,191    67,530

Corrections Corp. of America (1)

    1,054    39,736

Deluxe Corp.

    1,712    75,414

DeVry Inc. (1) (2)

    2,017    46,895

Donnelley (R.R.) & Sons Co.

    7,840    248,842

Education Management Corp. (1)

    1,980    54,965

Equifax Inc.

    4,629    111,651

First Health Group Corp. (1) (2)

    3,199    44,850

Forrester Research Inc. (1)

    561    10,014

FTI Consulting Inc. (1) (2)

    1,433    24,734

Hewitt Associates Inc. Class A (1) (2)

    1,001    26,727

Hudson Highland Group Inc. (1) (2)

    268    8,131

Interactive Data Corp. (1) (2)

    1,162    20,347

Iron Mountain Inc. (1)

    3,961    127,821

ITT Educational Services Inc. (1) (2)

    1,445    46,023

Laureate Education Inc. (1) (2)

    1,429    50,444

Manpower Inc. (2)

    2,946    128,298

McKesson Corp.

    8,910    286,635

MoneyGram International Inc. (1)

    3,032    56,698

Moody’s Corp.

    4,229    287,995

MPS Group Inc. (1)

    3,346    30,047

Navigant Consulting Inc. (1) (2)

    1,322    27,696

NCO Group Inc. (1) (2)

    1,109    27,692

PAREXEL International Corp. (1) (2)

    876    16,828

Paychex Inc.

    10,925    335,507

Pharmaceutical Product Development Inc. (1) (2)

    1,603    56,201

Pre-Paid Legal Services Inc. (1) (2)

    463    10,718

PRG-Schultz International Inc. (1) (2)

    2,034    10,353

Quanta Services Inc. (1) (2)

    2,152    13,515

Rent-A-Center Inc. (1)

    2,652    77,810

Robert Half International Inc. (2)

    5,491    152,760

Service Corp. International (1) (2)

    9,717    61,703

ServiceMaster Co. (The) (2)

    9,696    113,249

Sotheby’s Holdings Inc. Class A (1)

    1,449    23,155

Spherion Corp. (1) (2)

    1,875    16,219

Stewart Enterprises Inc. Class A (1)

    3,050    21,228

Strayer Education Inc.

    442    43,060

TeleTech Holdings Inc. (1) (2)

    1,177    10,299

United Rentals Inc. (1)

    2,320    46,029

University of Phoenix Online (1)

    536    46,187

Valassis Communications Inc. (1) (2)

    1,602    46,842

Viad Corp.

    758    18,124

Weight Watchers International Inc. (1) (2)

    1,450    56,173
         
          5,385,759

COMPUTERS—3.84%

          

Advanced Digital Information Corp. (1) (2)

    2,045    18,241

Affiliated Computer Services Inc. Class A (1) (2)

    4,074    211,441

Agilysys Inc.

    1,145    17,060

Apple Computer Inc. (1)

    11,605    375,306

BISYS Group Inc. (The) (1) (2)

    3,926    53,590

Brocade Communications Systems Inc. (1)

    8,570    41,307

CACI International Inc. Class A (1)

    1,016    41,768

Cadence Design Systems Inc. (1) (2)

    8,868    119,452

Ceridian Corp. (1)

    5,035    90,630

CIBER Inc. (1) (2)

    1,871    14,032

Cognizant Technology Solutions Corp. (1)

    4,302    118,520

Computer Sciences Corp. (1)

    6,130    289,642

Dell Inc. (1)

    73,017    2,589,913

Diebold Inc.

    2,334    107,597

DST Systems Inc. (1) (2)

    2,619    119,322

Echelon Corp. (1) (2)

    1,164    8,672

Electronic Data Systems Corp.

    15,954    294,830

Electronics For Imaging Inc. (1) (2)

    1,741    34,942

EMC Corp. (1)

    79,344    870,404

FactSet Research Systems Inc. (2)

    693    29,903

Gateway Inc. (1)

    7,636    34,362

Henry (Jack) & Associates Inc.

    2,454    47,239

Hewlett-Packard Co.

    89,615    1,805,742

Hutchinson Technology Inc. (1) (2)

    866    19,286

Imation Corp. (2)

    1,180    39,117

InFocus Corp. (1)

    1,303    11,545

Intergraph Corp. (1)

    1,192    31,457

International Business Machines Corp.

    55,118    4,799,124

Iomega Corp.

    1,584    6,954

Kronos Inc. (1) (2)

    1,056    46,380

Lexar Media Inc. (1) (2)

    2,229    12,014

Lexmark International Inc. (1)

    4,238    375,063

Maxtor Corp. (1) (2)

    8,296    38,825

McDATA Corp. Class A (1) (2)

    2,758    14,204

McDATA Corp. Class B (1) (2)

    708    3,427

Mentor Graphics Corp. (1) (2)

    2,178    25,700

Mercury Computer Systems Inc. (1) (2)

    718    17,096

MICROS Systems Inc. (1)

    589    28,637

M-Systems Flash Disk Pioneers Ltd. (1) (2)

    999    13,885

National Instruments Corp. (2)

    1,681    48,833

NCR Corp. (1)

    3,127    145,187

Network Appliance Inc. (1)

    11,429    220,694

Perot Systems Corp. Class A (1)

    2,311    29,165

Quantum Corp. (1) (2)

    5,359    13,076

RadiSys Corp. (1) (2)

    566    7,024

Reynolds & Reynolds Co. (The) Class A

    2,140    47,294

SanDisk Corp. (1) (2)

    5,228    127,145

Seagate Technology (2)

    5,043    57,843

Silicon Graphics Inc. (1) (2)

    5,959    9,117

Silicon Storage Technology Inc. (1) (2)

    2,752    18,273

Storage Technology Corp. (1)

    3,821    95,334

Sun Microsystems Inc. (1)

    108,874    430,052

SunGard Data Systems Inc. (1)

    9,424    219,673

Synopsys Inc. (1)

    5,118    129,434

Unisys Corp. (1)

    10,716    109,732

Western Digital Corp. (1)

    6,626    46,448
         
          14,570,953

COSMETICS & PERSONAL CARE—2.22%

          

Alberto-Culver Co.

    2,329    108,578

Avon Products Inc.

    15,369    661,021

Colgate-Palmolive Co.

    16,179    860,723

Estee Lauder Companies Inc. Class A

    3,638    159,708

Gillette Co. (The)

    29,896    1,165,346

Kimberly-Clark Corp.

    16,368    1,048,698

Procter & Gamble Co.

    84,535    4,408,500
         
          8,412,574

DISTRIBUTION & WHOLESALE—0.24%

          

CDW Corp.

    2,089    134,323

Fastenal Co. (2)

    2,195    136,924

Genuine Parts Co.

    5,800    218,834

Grainger (W.W.) Inc.

    2,652    140,423

Hughes Supply Inc.

    1,050    63,966

Ingram Micro Inc. Class A (1)

    4,161    59,294

SCP Pool Corp. (2)

    1,253    51,661

Tech Data Corp. (1)

    1,866    69,900

United Stationers Inc. (1)

    1,154    45,491
         
          920,816

DIVERSIFIED FINANCIAL SERVICES—7.30%

          

Affiliated Managers Group Inc. (1) (2)

    911    41,824

American Express Co.

    37,106    1,864,576

AmeriCredit Corp. (1) (2)

    4,952    94,583

Ameritrade Holding Corp. (1)

    9,310    103,248

Bear Stearns Companies Inc. (The)

    3,390    282,794

Capital One Financial Corp.

    7,829    542,706

CapitalSource Inc. (1) (2)

    2,202    47,607

Chicago Mercantile Exchange Holdings Inc. (2)

    863    108,306

CIT Group Inc.

    6,956    241,791

Citigroup Inc.

    169,074    7,454,473

Countrywide Financial Corp.

    9,073    654,163

Doral Financial Corp.

    3,018    118,457

E*TRADE Financial Corp. (1)

    12,036    133,239

Eaton Vance Corp. (2)

    1,933    73,338

Edwards (A.G.) Inc.

    2,625    85,312

Federal Home Loan Mortgage Corp.

    22,568    1,451,348

Federal National Mortgage Association

    28,623    2,031,088

Federated Investors Inc. Class B

    3,087    86,776

Franklin Resources Inc.

    4,649    224,314

Friedman, Billings, Ramsey Group Inc. Class A

    4,733    77,858

Goldman Sachs Group Inc. (The)

    13,458    1,186,861

IndyMac Bancorp Inc. (2)

    1,924    63,915

Investment Technology Group Inc. (1) (2)

    1,614    21,208

Janus Capital Group Inc.

    7,676    101,784

Jefferies Group Inc.

    1,623    50,865

JP Morgan Chase & Co.

    116,408    4,345,511

Knight Trading Group Inc. (1) (2)

    3,519    29,947

LaBranche & Co. Inc. (1) (2)

    1,135    9,296

Legg Mason Inc. (2)

    2,149    168,782

Lehman Brothers Holdings Inc.

    9,097    637,700

MBNA Corp.

    36,982    913,086

Merrill Lynch & Co. Inc.

    28,790    1,431,439

Morgan Stanley

    32,773    1,616,692

New Century Financial Corp. (2)

    1,077    50,673

Piper Jaffray Companies Inc. (1) (2)

    628    25,591

Providian Financial Corp. (1)

    9,706    134,331

Raymond James Financial Inc.

    1,969    46,016

Schwab (Charles) Corp. (The)

    34,187    300,162

SLM Corp.

    14,244    540,132

SWS Group Inc.

    583    7,987

T. Rowe Price Group Inc.

    4,231    195,557

W.P. Stewart & Co. Ltd. (2)

    880    17,169

Waddell & Reed Financial Inc. Class A (2)

    2,597    50,434
         
          27,662,939

ELECTRIC—2.76%

          

AES Corp. (The) (1)

    19,985    192,855

Allegheny Energy Inc. (1) (2)

    4,206    62,417

ALLETE Inc.

    2,603    72,155

Alliant Energy Corp.

    3,513    91,022

Ameren Corp.

    5,895    263,448

American Electric Power Co. Inc.

    12,803    398,301

Aquila Inc. (1)

    5,922    19,424

Avista Corp.

    1,604    27,990

Black Hills Corp. (2)

    1,011    27,924

Calpine Corp. (1) (2)

    13,636    52,635

CenterPoint Energy Inc. (2)

    8,996    104,444

Cinergy Corp.

    5,391    206,206

Cleco Corp. (2)

    1,583    27,307

CMS Energy Corp. (1) (2)

    5,382    48,599

Consolidated Edison Inc. (2)

    7,795    319,361

Constellation Energy Group Inc.

    5,514    212,565

Dominion Resources Inc.

    10,693    678,578

DPL Inc.

    3,069    61,227

DTE Energy Co.

    5,683    228,286

Duke Energy Corp.

    29,689    638,313

Duquesne Light Holdings Inc. (2)

    2,595    49,227

Edison International

    9,944    266,499

El Paso Electric Co. (1)

    1,741    26,202

Energy East Corp.

    4,799    116,904

Entergy Corp.

    7,518    432,285

Exelon Corp.

    21,546    751,955

FirstEnergy Corp.

    10,884    425,564

FPL Group Inc.

    5,513    371,190

Great Plains Energy Inc. (2)

    2,541    72,901

Hawaiian Electric Industries Inc. (2)

    2,751    70,233

IDACORP Inc. (2)

    1,301    35,777

MDU Resources Group Inc.

    3,374    82,494

NiSource Inc.

    8,689    179,862

Northeast Utilities

    4,320    80,784

NRG Energy Inc. (1)

    2,585    68,735

NSTAR

    1,741    81,479

OGE Energy Corp. (2)

    2,872    71,484

Pepco Holdings Inc. (2)

    5,813    104,634

PG&E Corp. (1)

    12,398    353,839

Pinnacle West Capital Corp.

    3,046    123,363

PNM Resources Inc. (2)

    1,950    40,638

PPL Corp.

    5,789    268,320

Progress Energy Inc.

    7,967    335,729

Public Service Enterprise Group Inc. (2)

    7,688    299,832

Puget Energy Inc.

    3,434    74,174

Reliant Energy Inc. (1)

    9,540    94,255

SCANA Corp.

    3,345    122,494

Sierra Pacific Resources Corp. (1) (2)

    3,462    28,458

Southern Co. (The)

    24,038    703,833

TECO Energy Inc.

    6,082    78,458

Texas Genco Holdings Inc.

    442    20,504

TXU Corp.

    10,509    416,787

UniSource Energy Corp. (2)

    1,152    28,443

Westar Energy Inc.

    2,922    58,937

Wisconsin Energy Corp.

    3,915    125,867

WPS Resources Corp. (2)

    1,141    52,360

Xcel Energy Inc.

    13,042    223,018
         
          10,470,575

ELECTRICAL COMPONENTS & EQUIPMENT—0.39%

          

American Power Conversion Corp.

    6,481    97,863

AMETEK Inc.

    2,304    71,055

Artesyn Technologies Inc. (1) (2)

    1,310    9,773

Belden CDT Inc. (1) (2)

    1,480    28,786

C&D Technologies Inc.

    878    13,785

Emerson Electric Co.

    13,760    835,232

Energizer Holdings Inc. (1)

    2,645    100,774

General Cable Corp. (1) (2)

    1,022    9,729

GrafTech International Ltd. (1) (2)

    3,201    35,307

Hubbell Inc. Class B (2)

    1,605    72,546

Littelfuse Inc. (1)

    719    27,897

Molex Inc.

    2,508    72,632

Molex Inc. Class A

    2,790    69,248

Power-One Inc. (1)

    2,321    20,355
         
          1,464,982

ELECTRONICS—0.82%

          

Agilent Technologies Inc. (1)

    14,321    340,983

Amphenol Corp. Class A (1)

    2,497    78,481

Applera Corp. - Applied Biosystems Group

    6,799    140,671

Arrow Electronics Inc. (1)

    3,731    88,275

Avnet Inc. (1)

    4,038    78,418

AVX Corp. (2)

    1,882    23,469

Benchmark Electronics Inc. (1) (2)

    1,288    36,811

Checkpoint Systems Inc. (1) (2)

    1,149    19,774

Coherent Inc. (1) (2)

    1,009    26,552

CTS Corp. (2)

    1,010    11,585

Cymer Inc. (1) (2)

    1,161    33,251

Dionex Corp. (1) (2)

    733    34,590

Electro Scientific Industries Inc. (1)

    880    22,660

Fisher Scientific International Inc. (1) (2)

    2,162    125,828

Flextronics International Ltd. (1)

    17,384    218,517

Flir Systems Inc. (1) (2)

    1,178    74,956

Garmin Ltd. (2)

    1,884    70,650

Gentex Corp. (2)

    2,466    88,283

Jabil Circuit Inc. (1)

    5,369    116,776

KEMET Corp. (1) (2)

    2,908    29,342

Methode Electronics Inc. (2)

    1,181    15,388

Mettler Toledo International Inc. (1)

    1,298    54,127

Molecular Devices Corp. (1)

    578    11,797

Orbotech Ltd. (1)

    1,020    17,359

Park Electrochemical Corp.

    581    13,351

Parker Hannifin Corp.

    3,912    224,471

PerkinElmer Inc.

    4,056    71,304

Photon Dynamics Inc. (1) (2)

    580    15,944

Plexus Corp. (1) (2)

    1,439    16,131

Sanmina-SCI Corp. (1)

    17,481    128,311

Solectron Corp. (1)

    30,314    166,727

Symbol Technologies Inc.

    7,011    91,774

Technitrol Inc. (1) (2)

    1,161    21,478

Tektronix Inc.

    2,728    82,931

Thermo Electron Corp. (1)

    5,563    143,080

Thomas & Betts Corp.

    1,886    49,602

Trimble Navigation Ltd. (1)

    1,569    43,571

Varian Inc. (1)

    1,157    43,850

Vishay Intertechnology Inc. (1) (2)

    4,793    74,291

Waters Corp. (1)

    3,828    167,973
         
          3,113,332

ENERGY - ALTERNATE SOURCES—0.00%

          

FuelCell Energy Inc. (1) (2)

    1,156    11,491
         
          11,491

ENGINEERING & CONSTRUCTION—0.09%

          

Dycom Industries Inc. (1) (2)

    1,599    43,077

EMCOR Group Inc. (1) (2)

    561    24,274

Fluor Corp. (2)

    2,741    124,853

Granite Construction Inc. (2)

    1,170    20,814

Insituform Technologies Inc. Class A (1) (2)

    869    15,616

Jacobs Engineering Group Inc. (1)

    1,732    69,245

McDermott International Inc. (1) (2)

    2,036    21,724

Shaw Group Inc. (The) (1) (2)

    2,132    21,149
         
          340,752

ENTERTAINMENT—0.17%

          

Alliance Gaming Corp. (1)

    1,396    19,865

GTECH Holdings Corp.

    1,871    79,274

International Game Technology Inc.

    11,455    370,455

International Speedway Corp. Class A

    857    44,598

Macrovision Corp. (1)

    1,448    31,335

Metro-Goldwyn-Mayer Inc. (2)

    2,503    30,361

Pinnacle Entertainment Inc. (1)

    889    10,037

Scientific Games Corp. Class A (1) (2)

    2,025    36,065

Six Flags Inc. (1) (2)

    3,182    15,019
         
          637,009

ENVIRONMENTAL CONTROL—0.24%

          

Allied Waste Industries Inc. (1)

    8,118    75,010

Casella Waste Systems Inc. Class A (1) (2)

    744    9,077

Ionics Inc. (1) (2)

    586    15,845

Republic Services Inc.

    4,916    140,598

Stericycle Inc. (1)

    1,454    71,246

Tetra Tech Inc. (1) (2)

    1,918    30,957

Waste Connections Inc. (1) (2)

    1,294    37,345

Waste Management Inc.

    19,007    534,857
         
          914,935

FOOD—1.74%

          

Albertson’s Inc. (2)

    10,464    255,217

American Italian Pasta Co. Class A (2)

    587    17,264

Archer-Daniels-Midland Co.

    19,393    299,234

Campbell Soup Co.

    8,349    213,651

Chiquita Brands International Inc. (1)

    1,312    25,636

ConAgra Foods Inc.

    17,367    451,542

Corn Products International Inc.

    1,150    49,588

Dean Foods Co. (1)

    5,056    186,971

Del Monte Foods Co. (1) (2)

    6,811    71,788

Dreyer’s Grand Ice Cream Holdings Inc. (2)

    688    54,668

Flowers Foods Inc. (2)

    1,492    38,941

General Mills Inc.

    9,697    435,395

Hain Celestial Group Inc. (1) (2)

    999    16,513

Heinz (H.J.) Co.

    11,588    427,481

Hershey Foods Corp.

    5,702    276,205

Hormel Foods Corp.

    2,476    73,488

Interstate Bakeries Corp. (2)

    1,459    14,342

Kellogg Co.

    7,822    325,865

Kraft Foods Inc. (2)

    8,809    269,115

Kroger Co. (1)

    21,809    344,582

McCormick & Co. Inc. NVS

    3,970    142,007

Performance Food Group Co. (1) (2)

    1,468    36,377

Ralcorp Holdings Inc. (1)

    1,013    36,944

Safeway Inc. (1)

    14,751    311,689

Sara Lee Corp.

    25,860    567,886

Smithfield Foods Inc. (1)

    2,930    83,036

Smucker (J.M.) Co. (The)

    1,872    78,268

SUPERVALU Inc.

    4,494    128,349

Sysco Corp.

    20,906    720,212

Tootsie Roll Industries Inc.

    760    22,268

Tyson Foods Inc. Class A

    7,839    149,411

Whole Foods Market Inc. (2)

    2,019    166,204

Wild Oats Markets Inc. (1) (2)

    731    9,211

Winn-Dixie Stores Inc. (2)

    2,645    16,716

Wrigley (William Jr.) Co.

    4,527    273,431
         
          6,589,495

FOREST PRODUCTS & PAPER—0.53%

          

Boise Cascade Corp.

    2,898    93,460

Bowater Inc. (2)

    1,882    70,199

Caraustar Industries Inc. (1) (2)

    1,015    14,159

Georgia-Pacific Corp.

    7,300    245,280

International Paper Co.

    15,818    683,812

Louisiana-Pacific Corp.

    3,514    83,212

MeadWestvaco Corp.

    6,667    199,077

Pope & Talbot Inc. (2)

    427    8,378

Potlatch Corp. (2)

    1,005    40,290

Temple-Inland Inc.

    1,746    119,165

Wausau-Mosinee Paper Corp. (2)

    1,411    21,927

Weyerhaeuser Co.

    7,245    449,190
         
          2,028,149

GAS—0.28%

          

AGL Resources Inc.

    1,898    56,086

Atmos Energy Corp. (2)

    1,990    50,088

Energen Corp.

    1,016    48,108

KeySpan Corp.

    5,208    187,436

New Jersey Resources Corp.

    838    34,065

Nicor Inc. (2)

    1,445    47,844

Northwest Natural Gas Co. (2)

    872    25,619

NUI Corp.

    427    5,666

ONEOK Inc. (2)

    3,138    65,898

Peoples Energy Corp.

    1,161    45,279

Piedmont Natural Gas Co. (2)

    1,263    52,099

Sempra Energy

    6,733    240,705

Southern Union Co. (1)

    1,597    31,796

UGI Corp. (2)

    1,760    57,006

Vectren Corp. (2)

    2,602    64,400

WGL Holdings Inc.

    1,591    43,657
         
          1,055,752

HAND & MACHINE TOOLS—0.11%

          

Black & Decker Corp.

    2,654    185,541

Kennametal Inc.

    1,197    52,668

Regal-Beloit Corp. (2)

    697    14,637

Snap-On Inc.

    1,718    55,165

Stanley Works (The)

    2,742    116,261
         
          424,272

HEALTH CARE-PRODUCTS—3.64%

          

Advanced Medical Optics Inc. (1) (2)

    1,007    38,316

Alcon Inc.

    2,628    201,305

Apogent Technologies Inc. (1) (2)

    3,015    97,988

ArthroCare Corp. (1) (2)

    595    15,845

Bard (C.R.) Inc.

    3,462    191,102

Bausch & Lomb Inc.

    1,724    106,181

Baxter International Inc.

    19,978    600,738

Beckman Coulter Inc.

    2,041    112,602

Becton, Dickinson & Co.

    8,200    387,286

Biomet Inc.

    7,699    338,679

Biosite Inc. (1) (2)

    439    19,399

Bioveris Corp. (1)

    709    5,318

Boston Scientific Corp. (1)

    19,501    746,108

Cooper Companies Inc.

    992    58,974

Cyberonics Inc. (1) (2)

    587    16,424

Cytyc Corp. (1) (2)

    3,476    84,015

Dade Behring Holdings Inc. (1)

    1,370    68,075

Datascope Corp. (2)

    443    15,377

DENTSPLY International Inc.

    2,326    113,113

Diagnostic Products Corp. (2)

    774    31,076

Edwards Lifesciences Corp. (1) (2)

    2,023    71,149

Gen-Probe Inc. (1) (2)

    1,521    56,916

Guidant Corp.

    10,179    563,102

Haemonetics Corp. (1)

    870    26,100

Henry Schein Inc. (1)

    1,451    97,362

Hillenbrand Industries Inc. (2)

    1,877    106,595

IDEXX Laboratories Inc. (1)

    1,154    58,150

INAMED Corp. (1)

    1,158    62,740

Invacare Corp. (2)

    1,007    40,834

Johnson & Johnson

    97,075    5,365,335

Medtronic Inc.

    39,642    1,969,018

Mentor Corp. (2)

    1,135    35,741

Oakley Inc. (2)

    864    9,331

Patterson Cos. Inc. (1) (2)

    1,890    138,764

PolyMedica Corp.

    886    26,988

PSS World Medical Inc. (1) (2)

    2,315    22,664

ResMed Inc. (1) (2)

    1,054    51,646

Respironics Inc. (1)

    1,184    65,972

St. Jude Medical Inc. (1)

    5,749    391,679

Steris Corp. (1) (2)

    2,325    47,802

Stryker Corp.

    8,989    428,596

Sybron Dental Specialties Inc. (1)

    1,309    35,212

TECHNE Corp. (1) (2)

    1,442    57,392

Varian Medical Systems Inc. (1)

    2,222    153,340

Viasys Healthcare Inc. (1) (2)

    873    13,226

VISX Inc. (1) (2)

    1,461    31,280

Zimmer Holdings Inc. (1)

    7,971    608,267
         
          13,783,122

HEALTH CARE-SERVICES—1.42%

          

Aetna Inc.

    4,964    425,911

AMERIGROUP Corp. (1)

    731    35,059

Anthem Inc. (1)

    4,534    373,919

Apria Healthcare Group Inc. (1) (2)

    1,752    51,421

Beverly Enterprises Inc. (1) (2)

    3,339    26,311

Community Health Systems Inc. (1)

    2,621    64,503

Covance Inc. (1)

    2,160    79,250

Coventry Health Care Inc. (1)

    2,394    122,357

DaVita Inc. (1)

    3,336    101,314

HCA Inc. (2)

    14,173    547,786

Health Management Associates Inc. Class A (2)

    7,786    156,187

Health Net Inc. (1)

    3,793    91,525

Humana Inc. (1)

    5,361    97,088

Laboratory Corp. of America Holdings (1) (2)

    4,540    177,786

LifePoint Hospitals Inc. (1)

    1,078    36,016

Lincare Holdings Inc. (1) (2)

    3,213    102,623

Manor Care Inc.

    2,817    88,031

Odyssey Healthcare Inc. (1) (2)

    1,127    19,362

Orthodontic Centers of America Inc. (1) (2)

    1,444    9,761

PacifiCare Health Systems Inc. (1) (2)

    2,715    82,998

Pediatrix Medical Group Inc. (1)

    858    54,260

Province Healthcare Co. (1) (2)

    1,577    22,914

Quest Diagnostics Inc.

    2,635    216,281

Renal Care Group Inc. (1) (2)

    2,088    66,524

Select Medical Corp.

    3,268    41,961

Sunrise Senior Living Inc. (1) (2)

    579    20,439

Tenet Healthcare Corp. (1)

    15,353    171,647

Triad Hospitals Inc. (1) (2)

    2,597    88,454

UnitedHealth Group Inc.

    21,699    1,364,885

Universal Health Services Inc. Class B

    1,614    73,453

US Oncology Inc. (1)

    2,782    41,368

WellPoint Health Networks Inc. (1)

    5,066    512,173
         
          5,363,567

HOLDING COMPANIES - DIVERSIFIED—0.02%

          

Leucadia National Corp.

    1,435    73,888
         
          73,888

HOME BUILDERS—0.35%

          

Beazer Homes USA Inc. (2)

    413    38,574

Centex Corp.

    4,076    172,904

Champion Enterprises Inc. (1) (2)

    2,304    22,418

D.R. Horton Inc.

    6,625    183,049

Fleetwood Enterprises Inc. (1) (2)

    1,159    15,577

Hovnanian Enterprises Inc. Class A (1) (2)

    1,144    35,498

KB Home

    1,278    81,856

Lennar Corp. Class A

    4,066    173,537

Lennar Corp. Class B

    310    12,304

M.D.C. Holdings Inc.

    831    55,802

Monaco Coach Corp.

    1,011    24,547

NVR Inc. (1)

    168    78,288

Pulte Homes Inc.

    3,508    191,642

Ryland Group Inc.

    807    62,478

Standard-Pacific Corp. (2)

    1,029    47,756

Thor Industries Inc. (2)

    1,180    36,946

Toll Brothers Inc. (1) (2)

    1,549    61,557

Winnebago Industries Inc.

    1,142    42,083
         
          1,336,816

HOME FURNISHINGS—0.17%

          

Ethan Allen Interiors Inc.

    1,171    43,503

Furniture Brands International Inc. (2)

    1,732    39,801

Harman International Industries Inc.

    2,156    184,834

La-Z-Boy Inc. (2)

    1,710    29,549

Leggett & Platt Inc.

    6,278    169,820

Maytag Corp.

    2,502    51,291

Whirlpool Corp.

    1,898    118,511
         
          637,309

HOUSEHOLD PRODUCTS & WARES—0.29%

          

American Greetings Corp. Class A (1) (2)

    2,035    47,456

Avery Dennison Corp.

    3,182    192,734

Blyth Inc.

    1,150    40,043

Church & Dwight Co. Inc. (2)

    1,306    57,699

Clorox Co.

    5,008    249,248

Fortune Brands Inc.

    4,792    345,887

Fossil Inc. (1)

    1,320    31,931

Scotts Co. (The) Class A (1)

    696    42,456

Tupperware Corp. (2)

    1,748    30,013

WD-40 Co. (2)

    566    14,931

Yankee Candle Co. Inc. (The) (1)

    1,498    43,472
         
          1,095,870

HOUSEWARES—0.06%

          

Newell Rubbermaid Inc.

    9,034    195,134

Toro Co. (2)

    739    48,405
         
          243,539

 

INSURANCE—4.74%

          

ACE Ltd.

    9,159    371,764

AFLAC Inc.

    16,724    662,939

Allmerica Financial Corp. (1)

    1,743    51,959

Allstate Corp. (The)

    23,041    1,084,770

Ambac Financial Group Inc.

    3,602    256,138

American Financial Group Inc. (2)

    1,163    34,529

American International Group Inc.

    74,919    5,293,027

American National Insurance Co. (2)

    448    40,992

AmerUs Group Co. (2)

    1,354    52,129

AON Corp.

    8,639    228,415

Axis Capital Holdings Ltd.

    3,803    97,737

Berkley (W.R.) Corp.

    2,315    94,776

Brown & Brown Inc. (2)

    1,869    79,470

Chubb Corp.

    6,196    426,161

CIGNA Corp.

    4,649    288,284

Cincinnati Financial Corp.

    4,865    194,016

CNA Financial Corp. (1) (2)

    999    26,354

Commerce Group Inc. (2)

    1,018    49,281

Conseco Inc. (1)

    4,516    81,198

Delphi Financial Group Inc. Class A (2)

    879    35,643

Endurance Specialty Holdings Ltd.

    1,385    45,774

Erie Indemnity Co. Class A (2)

    886    40,154

Everest Re Group Ltd.

    1,843    135,424

Fidelity National Financial Inc.

    5,176    187,630

First American Corp.

    2,670    71,716

Gallagher (Arthur J.) & Co. (2)

    3,046    94,335

Hartford Financial Services Group Inc.

    9,571    623,072

HCC Insurance Holdings Inc. (2)

    1,930    58,479

Hilb, Rogal & Hobbs Co. (2)

    973    32,683

Horace Mann Educators Corp. (2)

    1,304    21,855

IPC Holdings Ltd.

    1,180    44,250

Jefferson-Pilot Corp.

    4,504    217,003

Lincoln National Corp.

    5,781    252,630

Loews Corp.

    4,102    232,296

Markel Corp. (1) (2)

    280    79,100

Marsh & McLennan Cos. Inc.

    16,203    719,089

MBIA Inc.

    4,738    255,757

Mercury General Corp.

    872    41,097

MetLife Inc.

    10,329    368,435

MGIC Investment Corp.

    3,227    229,117

Montpelier Re Holdings Ltd.

    1,617    57,209

Nationwide Financial Services Inc.

    1,907    67,641

Ohio Casualty Corp. (1) (2)

    1,885    35,250

Old Republic International Corp.

    5,643    131,425

PartnerRe Ltd. (2)

    1,726    90,287

Philadelphia Consolidated Holding Corp. (1)

    607    33,185

Phoenix Companies Inc.

    2,708    28,082

Platinum Underwriters Holdings Ltd.

    986    27,440

PMI Group Inc. (The)

    3,222    132,843

Presidential Life Corp. (2)

    726    12,741

Principal Financial Group Inc.

    10,395    353,326

Progressive Corp. (The)

    6,264    479,948

Protective Life Corp. (2)

    2,160    78,300

Prudential Financial Inc.

    17,100    796,176

Radian Group Inc.

    3,036    139,717

Reinsurance Group of America Inc. (2)

    875    34,869

RenaissanceRe Holdings Ltd. (2)

    2,166    114,798

SAFECO Corp.

    4,460    209,888

Selective Insurance Group Inc. (2)

    864    31,113

St. Paul Travelers Companies Inc.

    21,861    810,387

StanCorp Financial Group Inc.

    887    62,356

Torchmark Corp.

    3,574    186,849

Transatlantic Holdings Inc. (2)

    893    50,571

Unitrin Inc.

    1,458    60,726

UNUMProvident Corp. (2)

    8,817    140,631

White Mountains Insurance Group Ltd.

    210    106,155

Willis Group Holdings Ltd.

    4,625    160,950

XL Capital Ltd. Class A

    4,522    319,615
         
          17,951,956

INTERNET—1.30%

          

Agile Software Corp. (1)

    1,456    10,833

Akamai Technologies Inc. (1) (2)

    3,799    56,719

Amazon.com Inc. (1)

    9,666    376,201

Ariba Inc. (1)

    1,791    15,564

Ask Jeeves Inc. (1)

    1,943    56,502

Avocent Corp. (1)

    1,609    48,173

Check Point Software Technologies Ltd. (1) (2)

    5,825    115,859

CheckFree Corp. (1) (2)

    2,209    66,358

CNET Networks Inc. (1) (2)

    4,047    36,949

Digital River Inc. (1) (2)

    1,041    29,252

DoubleClick Inc. (1)

    4,334    22,407

E.piphany Inc. (1)

    2,462    9,848

EarthLink Inc. (1)

    5,109    50,426

eBay Inc. (1)

    14,348    1,123,879

Entrust Inc. (1)

    1,611    4,495

eResearch Technology Inc. (1) (2)

    1,510    37,614

F5 Networks Inc. (1)

    906    23,728

IAC/InterActiveCorp (1) (2)

    16,346    446,246

Internet Security Systems Inc. (1) (2)

    1,582    24,236

Interwoven Inc. (1)

    1,340    10,077

Keynote Systems Inc. (1)

    266    3,503

Macromedia Inc. (1)

    2,366    47,793

MatrixOne Inc. (1)

    1,449    9,216

McAfee Inc. (1)

    5,389    96,894

Monster Worldwide Inc. (1) (2)

    3,529    77,956

NetBank Inc. (2)

    1,592    17,098

NetFlix Inc. (1) (2)

    857    17,569

Openwave Systems Inc. (1)

    2,087    23,729

PC-Tel Inc. (1)

    579    5,842

Priceline.com Inc. (1) (2)

    688    16,292

RealNetworks Inc. (1)

    3,635    20,501

RSA Security Inc. (1) (2)

    1,867    34,764

S1 Corp. (1)

    2,168    17,929

Safeguard Scientifics Inc. (1) (2)

    3,777    7,176

SonicWALL Inc. (1)

    1,751    11,609

Stamps.com Inc.

    739    7,745

Symantec Corp. (1)

    10,166    475,362

TIBCO Software Inc. (1)

    5,778    40,850

United Online Inc. (1) (2)

    1,611    25,132

VeriSign Inc. (1)

    8,155    142,794

Verity Inc. (1)

    1,156    12,866

Vignette Corp. (1)

    8,409    12,025

WatchGuard Technologies Inc. (1)

    733    3,863

WebMD Corp. (1) (2)

    10,256    83,484

webMethods Inc. (1)

    1,602    7,642

Yahoo! Inc. (1)

    37,350    1,150,380
         
          4,935,380

IRON & STEEL—0.13%

          

AK Steel Holding Corp. (1)

    3,487    23,119

Allegheny Technologies Inc.

    2,319    46,496

Carpenter Technology Corp.

    599    25,757

Cleveland-Cliffs Inc. (1) (2)

    291    19,072

Nucor Corp.

    2,342    195,908

Ryerson Tull Inc. (2)

    876    13,438

Steel Dynamics Inc. (2)

    1,263    41,363

United States Steel Corp. (2)

    3,672    140,050
         
          505,203

LEISURE TIME—0.44%

          

Bally Total Fitness Holding Corp. (1)

    1,022    5,274

Brunswick Corp.

    2,918    113,890

Callaway Golf Co. (2)

    2,291    25,201

Carnival Corp.

    12,653    589,756

Harley-Davidson Inc.

    9,579    573,495

Multimedia Games Inc. (1)

    734    13,895

Nautilus Group Inc. (The) (2)

    1,154    21,372

Polaris Industries Inc. (2)

    1,482    70,840

Royal Caribbean Cruises Ltd. (2)

    3,166    135,347

Sabre Holdings Corp.

    4,415    112,715

WMS Industries Inc. (1) (2)

    548    14,928
         
          1,676,713

LODGING—0.40%

          

Aztar Corp. (1) (2)

    1,140    27,668

Caesars Entertainment Inc. (1)

    9,026    132,953

Harrah’s Entertainment Inc.

    3,660    170,153

Hilton Hotels Corp.

    12,371    220,575

La Quinta Corp. (1)

    6,156    47,155

Mandalay Resort Group

    2,002    135,135

Marriott International Inc. Class A

    5,895    287,676

MGM Mirage (1) (2)

    2,000    88,300

Prime Hospitality Corp. (1)

    1,025    9,410

Starwood Hotels & Resorts Worldwide Inc.

    6,673    300,285

Station Casinos Inc.

    1,164    50,285

Wynn Resorts Ltd. (1)

    1,790    64,046
         
          1,533,641

MACHINERY—0.61%

          

AGCO Corp. (1) (2)

    3,078    64,392

Albany International Corp. Class A

    852    25,492

Astec Industries Inc. (1)

    435    7,408

Briggs & Stratton Corp.

    723    60,371

Caterpillar Inc.

    11,120    817,209

Cognex Corp.

    1,304    39,224

Cummins Inc. (2)

    1,161    80,608

Deere & Co.

    8,112    509,515

Flowserve Corp. (1)

    1,748    41,865

Graco Inc.

    2,214    69,697

Idex Corp. (2)

    1,464    46,980

Joy Global Inc. (2)

    1,385    41,121

Kadant Inc. (1)

    445    8,945

Manitowoc Co. Inc. (The)

    862    29,230

Nordson Corp.

    860    36,008

Presstek Inc. (1) (2)

    1,032    8,813

Rockwell Automation Inc.

    5,451    203,922

Stewart & Stevenson Services Inc.

    875    13,781

Terex Corp. (1) (2)

    1,635    63,618

Unova Inc. (1)

    1,403    23,725

Zebra Technologies Corp. Class A (1)

    1,545    127,663
         
          2,319,587

MANUFACTURING—5.36%

          

Actuant Corp. Class A (1) (2)

    848    30,918

Acuity Brands Inc.

    1,306    31,148

AptarGroup Inc.

    1,167    49,376

Brink’s Co. (The)

    1,752    56,677

Carlisle Companies Inc.

    1,007    63,934

CLARCOR Inc. (2)

    754    33,176

Cooper Industries Ltd.

    3,026    172,089

Crane Co. (2)

    2,025    56,336

Danaher Corp.

    7,496    379,672

Donaldson Co. Inc. (2)

    2,562    68,226

Dover Corp.

    6,648    263,793

Eastman Kodak Co.

    9,405    249,138

Eaton Corp.

    4,986    322,295

General Electric Co.

    340,701    11,328,308

Harsco Corp.

    1,311    58,838

Honeywell International Inc.

    25,640    964,320

Illinois Tool Works Inc.

    8,703    787,796

Ingersoll-Rand Co. Class A

    5,622    386,175

ITT Industries Inc.

    3,052    244,007

Jacuzzi Brands Inc. (1) (2)

    2,587    19,972

Lancaster Colony Corp.

    1,014    40,844

Matthews International Corp. Class A

    1,056    36,200

Pall Corp.

    4,190    97,082

Pentair Inc.

    3,218    100,788

Roper Industries Inc. (2)

    1,279    71,624

SPX Corp. (2)

    2,487    101,843

Teleflex Inc.

    1,141    50,717

Textron Inc.

    3,800    232,940

3M Co.

    23,480    1,933,813

Tredegar Corp. (2)

    865    14,255

Trinity Industries Inc. (2)

    1,280    38,490

Tyco International Ltd.

    65,687    2,036,297
         
          20,321,087

MEDIA—3.59%

          

Belo (A.H.) Corp.

    3,188    74,535

Cablevision Systems Corp. (1) (2)

    6,083    106,270

Charter Communications Inc. Class A (1) (2)

    8,288    25,610

Clear Channel Communications Inc.

    18,337    654,631

Comcast Corp. Class A (1)

    41,168    1,128,003

Comcast Corp. Special Class A (1) (2)

    28,749    770,473

Cox Communications Inc. Class A (1)

    6,670    183,959

Cox Radio Inc. Class A (1) (2)

    1,151    19,947

Cumulus Media Inc. Class A (1)

    1,741    25,558

DIRECTV Group Inc. (The) (1)

    21,204    343,717

Dow Jones & Co. Inc. (2)

    1,533    64,969

EchoStar Communications Corp. (1)

    7,651    212,086

Emmis Communications Corp. (1)

    1,583    31,217

Entercom Communications Corp. (1)

    1,331    51,177

Fox Entertainment Group Inc. Class A (1)

    5,661    153,017

Gannett Co. Inc.

    8,857    736,371

Gemstar-TV Guide International Inc. (1)

    7,400    34,336

Hearst-Argyle Television Inc.

    851    19,258

Hollinger International Inc.

    1,263    20,903

Insight Communications Co. Inc. (1) (2)

    1,732    15,242

Knight Ridder Inc.

    2,526    166,186

Lee Enterprises Inc. (2)

    1,154    53,719

Liberty Media Corp. Class A

    83,727    710,005

Liberty Media International Inc. Class A (1)

    4,414    137,629

Liberty Media International Inc. Class A Rights (1) (2)

    1    5

McClatchy Co. (The) Class A (2)

    688    47,438

McGraw-Hill Companies Inc. (The)

    6,246    468,825

Media General Inc. Class A

    717    42,848

Meredith Corp.

    1,275    67,422

New York Times Co. Class A

    4,915    204,464

Radio One Inc. Class D (1) (2)

    2,316    35,226

Readers Digest Association Inc. (The)

    3,074    43,897

Scholastic Corp. (1)

    1,164    32,022

Scripps (E.W.) Co. Class A

    1,296    132,736

Sinclair Broadcast Group Inc. Class A (2)

    1,316    13,042

Sirius Satellite Radio Inc. (1) (2)

    39,247    99,295

Time Warner Inc. (1)

    143,618    2,391,240

Tribune Co.

    7,181    304,833

UnitedGlobalCom Inc. Class A (1) (2)

    12,496    79,225

Univision Communications Inc. Class A (1)

    7,745    224,373

Viacom Inc. Class A

    1,198    40,792

Viacom Inc. Class B

    49,042    1,647,321

Walt Disney Co. (The)

    67,171    1,550,978

Washington Post Co. (The) Class B

    195    169,241

Westwood One Inc. (1)

    2,555    60,809

Wiley, John & Sons Inc. Class A

    1,254    40,579

XM Satellite Radio Holdings Inc. Class A (1) (2)

    5,892    155,490

Young Broadcasting Inc. Class A (1) (2)

    571    6,104
         
          13,597,023

METAL FABRICATE & HARDWARE—0.08%

          

Kaydon Corp. (2)

    1,015    29,567

Mueller Industries Inc.

    1,056    40,255

Precision Castparts Corp. (2)

    2,039    114,857

Timken Co. (The) (2)

    2,339    58,101

Worthington Industries Inc.

    2,449    50,156
         
          292,936

MINING—0.54%

          

Alcoa Inc.

    28,420    910,293

Coeur d’Alene Mines Corp. (1) (2)

    7,037    24,348

Freeport-McMoRan Copper & Gold Inc.

    4,956    172,717

Meridian Gold Inc. (1)

    3,457    45,840

Newmont Mining Corp.

    13,079    529,307

Owens & Minor Inc. (2)

    1,157    29,700

Owens-Illinois Inc. (1)

    3,916    57,565

Phelps Dodge Corp. (1)

    3,003    234,054

RTI International Metals Inc. (1)

    579    8,679

Stillwater Mining Co. (1)

    1,309    19,046
         
          2,031,549

OFFICE & BUSINESS EQUIPMENT—0.20%

          

IKON Office Solutions Inc. (2)

    5,046    59,896

Imagistics International Inc. (1)

    462    15,015

Pitney Bowes Inc.

    7,485    315,867

Xerox Corp. (1) (2)

    25,973    359,986
         
          750,764

OFFICE FURNISHINGS—0.04%

          

Herman Miller Inc.

    2,299    61,613

HNI Corp.

    1,623    65,650

Interface Inc. Class A (1) (2)

    1,602    13,329

Steelcase Inc. Class A (2)

    1,554    20,280
         
          160,872

OIL & GAS—5.90%

          

Amerada Hess Corp.

    2,611    217,627

Anadarko Petroleum Corp.

    8,290    495,659

Apache Corp.

    10,670    496,475

Atwood Oceanics Inc. (1) (2)

    301    11,637

Burlington Resources Inc.

    12,870    491,248

Cabot Oil & Gas Corp. (2)

    1,018    44,761

Chesapeake Energy Corp. (2)

    8,180    125,563

ChevronTexaco Corp.

    35,007    3,348,420

Cimarex Energy Co. (1)

    1,357    44,143

ConocoPhillips

    20,466    1,612,107

Devon Energy Corp.

    7,377    512,628

Diamond Offshore Drilling Inc. (2)

    1,864    45,556

ENSCO International Inc.

    4,909    147,810

EOG Resources Inc.

    3,759    238,884

Evergreen Resources Inc. (1)

    1,419    58,065

Exxon Mobil Corp.

    213,796    9,898,755

Forest Oil Corp. (1) (2)

    1,884    53,298

GlobalSantaFe Corp.

    6,404    175,470

Grey Wolf Inc. (1) (2)

    6,222    27,937

Helmerich & Payne Inc.

    1,466    37,119

Kerr-McGee Corp.

    4,087    214,568

Marathon Oil Corp.

    11,209    422,243

Murphy Oil Corp.

    2,880    222,739

Nabors Industries Ltd. (1)

    4,954    230,361

Newfield Exploration Co. (1) (2)

    1,750    103,373

Noble Corp. (1)

    4,255    164,754

Noble Energy Inc. (2)

    1,741    96,295

Occidental Petroleum Corp.

    12,776    629,474

Parker Drilling Co. (1)

    3,333    12,865

Patina Oil & Gas Corp. (2)

    2,288    67,473

Patterson-UTI Energy Inc.

    5,148    93,848

Pioneer Natural Resources Co.

    3,853    138,901

Pogo Producing Co.

    1,981    87,917

Premcor Inc. (1)

    2,620    94,058

Pride International Inc. (1)

    3,905    70,290

Rowan Companies Inc. (1)

    3,630    88,645

Stone Energy Corp. (1) (2)

    867    39,223

Sunoco Inc.

    2,473    168,584

Tesoro Petroleum Corp. (1) (2)

    2,017    58,493

Transocean Inc. (1)

    10,481    297,660

Unit Corp. (1) (2)

    1,307    42,151

Unocal Corp.

    8,509    329,809

Valero Energy Corp.

    4,161    311,742

Vintage Petroleum Inc.

    1,727    29,532

XTO Energy Inc.

    8,239    246,346
         
          22,344,506

OIL & GAS SERVICES—0.93%

          

Baker Hughes Inc.

    10,807    435,522

BJ Services Co. (1)

    5,223    259,374

Cooper Cameron Corp. (1)

    1,836    93,801

Core Laboratories NV (1)

    1,025    22,550

FMC Technologies Inc. (1) (2)

    2,203    66,090

Global Industries Ltd. (1)

    2,175    10,984

Grant Prideco Inc. (1)

    3,581    67,645

Halliburton Co.

    14,252    452,501

Hanover Compressor Co. (1) (2)

    2,548    29,914

Input/Output Inc. (1)

    1,602    15,427

Key Energy Services Inc. (1)

    4,046    40,784

Lone Star Technologies Inc. (1) (2)

    870    28,988

Maverick Tube Corp. (1)

    1,313    37,867

National-Oilwell Inc. (1)

    2,752    92,054

Newpark Resources Inc. (1) (2)

    2,328    14,201

Oceaneering International Inc. (1)

    730    24,141

Schlumberger Ltd.

    19,249    1,238,096

Seacor Holdings Inc. (1) (2)

    542    22,927

Smith International Inc. (1) (2)

    3,353    195,413

Superior Energy Services Inc. (1)

    2,163    24,182

Tidewater Inc.

    1,856    56,330

Varco International Inc. (1)

    3,327    80,414

Veritas DGC Inc. (1)

    1,019    25,098

Weatherford International Ltd. (1) (2)

    4,303    201,294
         
          3,535,597

PACKAGING & CONTAINERS—0.22%

          

Ball Corp.

    1,712    123,572

Bemis Co. Inc.

    3,424    90,668

Chesapeake Corp. (2)

    808    18,754

Crown Holdings Inc. (1)

    5,772    58,528

Packaging Corp. of America

    2,028    47,374

Pactiv Corp. (1)

    4,917    115,943

Sealed Air Corp. (1)

    2,773    131,551

Smurfit-Stone Container Corp.

    8,488    157,962

Sonoco Products Co.

    3,174    82,238
         
          826,590

PHARMACEUTICALS—6.48%

          

Abbott Laboratories

    51,088    2,010,313

Abgenix Inc. (1)

    2,474    24,183

Accelrys Inc. (1)

    721    5,480

Accredo Health Inc. (1) (2)

    1,618    52,423

Alkermes Inc. (1) (2)

    2,754    29,716

Allergan Inc.

    4,341    328,353

Alpharma Inc. Class A

    1,446    23,772

American Pharmaceutical Partners Inc. (1) (2)

    1,439    42,738

AmerisourceBergen Corp.

    3,663    198,022

Amylin Pharmaceuticals Inc. (1) (2)

    2,626    54,096

Andrx Group (1)

    2,435    63,164

Barr Pharmaceuticals Inc. (1)

    2,889    99,237

Bristol-Myers Squibb Co.

    63,369    1,451,150

Cardinal Health Inc.

    14,006    623,267

Caremark Rx Inc. (1)

    15,073    459,727

Cell Therapeutics Inc. (1) (2)

    2,069    11,276

Cephalon Inc. (1) (2)

    1,871    94,523

Cubist Pharmaceuticals Inc. (1) (2)

    1,481    15,373

CV Therapeutics Inc. (1) (2)

    887    11,877

Express Scripts Inc. (1)

    2,046    134,218

Forest Laboratories Inc. (1)

    12,064    606,699

Gilead Sciences Inc. (1)

    6,962    450,024

Hospira Inc. (1)

    5,112    132,452

ImClone Systems Inc. (1) (2)

    2,025    119,313

Impax Laboratories Inc. (1)

    1,404    19,867

IVAX Corp. (1)

    5,524    131,747

King Pharmaceuticals Inc. (1)

    7,836    88,468

Ligand Pharmaceuticals Inc. Class B (1) (2)

    2,284    31,542

Lilly (Eli) & Co.

    31,611    2,014,253

Medarex Inc. (1) (2)

    2,311    14,190

Medco Health Solutions Inc. (1)

    8,928    270,518

Medicines Co. (The) (1) (2)

    1,430    37,838

Medicis Pharmaceutical Corp. Class A (2)

    1,928    68,965

Merck & Co. Inc.

    72,735    3,298,532

MGI Pharma Inc. (1) (2)

    2,362    66,160

Mylan Laboratories Inc.

    8,890    131,750

Nabi Biopharmaceuticals (1)

    1,635    18,884

NBTY Inc. (1)

    2,081    45,283

Neurocrine Biosciences Inc. (1)

    1,119    52,112

Noven Pharmaceuticals Inc. (1) (2)

    739    14,935

NPS Pharmaceuticals Inc. (1) (2)

    1,283    23,928

Omnicare Inc.

    3,324    93,969

Onyx Pharmaceuticals Inc. (1)

    1,024    34,949

OSI Pharmaceuticals Inc. (1) (2)

    1,261    75,786

Par Pharmaceutical Companies Inc. (1)

    1,132    42,608

Perrigo Co.

    2,041    34,003

Pfizer Inc.

    249,459    7,972,710

Pharmacopeia Drug Discovery (1)

    360    1,991

Priority Healthcare Corp. Class B (1) (2)

    1,153    25,827

Schering-Plough Corp.

    47,872    931,589

Sepracor Inc. (1) (2)

    2,879    132,348

Taro Pharmaceutical Industries Ltd. (1) (2)

    862    19,248

Trimeris Inc. (1) (2)

    553    6,343

Tularik Inc. (1) (2)

    1,651    41,176

United Therapeutics Inc. (1) (2)

    598    14,806

Valeant Pharmaceuticals International

    2,751    48,170

VCA Antech Inc. (1) (2)

    1,131    47,536

Vicuron Pharmaceuticals Inc. (1) (2)

    1,935    19,466

Watson Pharmaceuticals Inc. (1)

    3,612    91,059

Wyeth

    43,461    1,538,519
         
          24,542,471

PIPELINES—0.25%

          

Dynegy Inc. Class A (1) (2)

    9,024    37,901

El Paso Corp. (2)

    21,414    168,956

Equitable Resources Inc.

    2,126    109,021

Kinder Morgan Inc.

    3,201    192,092

National Fuel Gas Co. (2)

    2,612    66,710

Questar Corp.

    2,748    112,613

Western Gas Resources Inc.

    1,452    48,918

Williams Companies Inc.

    16,742    203,415
         
          939,626

REAL ESTATE—0.02%

          

LNR Property Corp. (2)

    715    38,617

St. Joe Company (The) (2)

    1,304    56,098
         
          94,715

REAL ESTATE INVESTMENT TRUSTS—1.72%

          

Alexandria Real Estate Equities Inc.

    579    34,792

AMB Property Corp.

    2,766    97,197

American Financial Realty Trust

    3,432    45,474

Annaly Mortgage Management Inc.

    3,858    63,657

Apartment Investment & Management Co. Class A

    3,090    98,787

Archstone-Smith Trust

    5,981    176,021

Arden Realty Group Inc.

    2,035    61,864

AvalonBay Communities Inc.

    2,290    133,278

Boston Properties Inc.

    3,462    183,140

Brandywine Realty Trust

    1,558    42,533

BRE Properties Inc. Class A

    1,557    53,950

Camden Property Trust

    1,114    50,130

Capital Automotive (2)

    1,141    33,078

CarrAmerica Realty Corp.

    1,723    52,534

Catellus Development Corp.

    3,043    76,075

CBL & Associates Properties Inc.

    977    53,833

CenterPoint Properties Trust (2)

    1,480    56,802

Chelsea Property Group Inc.

    1,458    94,945

Colonial Properties Trust (2)

    822    31,236

Cousins Properties Inc.

    1,309    42,058

Crescent Real Estate Equities Co.

    3,151    49,502

CRT Properties Inc.

    854    18,446

Developers Diversified Realty Corp.

    3,223    115,641

Duke Realty Corp.

    4,489    138,082

Equity Inns Inc.

    1,299    11,782

Equity Office Properties Trust

    13,044    338,492

Equity Residential

    9,076    268,196

Essex Property Trust Inc. (2)

    678    44,680

Federal Realty Investment Trust (2)

    1,640    69,208

FelCor Lodging Trust Inc. (1) (2)

    1,434    16,348

First Industrial Realty Trust Inc. (2)

    1,342    49,171

Gables Residential Trust (2)

    950    31,398

General Growth Properties Inc.

    7,272    218,742

Glenborough Realty Trust Inc.

    994    18,170

Health Care Property Investors Inc.

    4,418    110,273

Health Care REIT Inc. (2)

    1,803    58,183

Healthcare Realty Trust Inc.

    1,324    47,823

Highwoods Properties Inc. (2)

    1,746    40,507

Home Properties Inc.

    913    34,329

Hospitality Properties Trust

    2,107    84,027

Host Marriott Corp. (1)

    8,934    115,695

HRPT Properties Trust (2)

    5,675    57,147

Impac Mortgage Holdings Inc.

    2,016    46,267

iStar Financial Inc. (2)

    3,590    136,420

Kilroy Realty Corp. (2)

    836    29,594

Kimco Realty Corp.

    3,073    147,811

Liberty Property Trust

    2,653    101,875

Macerich Co. (The)

    1,843    88,280

Mack-Cali Realty Corp.

    1,887    77,178

Manufactured Home Communities Inc. (2)

    599    18,982

Meristar Hospitality Corp. (1)

    2,928    16,982

Mills Corp.

    1,496    68,218

Nationwide Health Properties Inc. (2)

    2,020    38,582

New Plan Excel Realty Trust Inc. (2)

    3,339    79,301

Novastar Financial Inc. (2)

    816    32,730

Pan Pacific Retail Properties Inc. (2)

    1,277    64,616

Pennsylvania Real Estate Investment Trust

    1,268    44,215

Plum Creek Timber Co. Inc.

    6,099    191,387

Post Properties Inc. (2)

    1,186    33,196

Prentiss Properties Trust

    1,163    39,844

ProLogis

    5,454    185,654

Public Storage Inc.

    2,890    136,206

Rayonier Inc.

    1,713    75,338

Realty Income Corp.

    1,394    56,485

Reckson Associates Realty Corp.

    2,175    60,269

Redwood Trust Inc.

    618    35,084

Regency Centers Corp.

    1,780    75,650

Rouse Co. (The)

    3,183    155,330

Shurgard Storage Centers Inc. Class A

    1,483    54,871

Simon Property Group Inc.

    6,036    311,518

SL Green Realty Corp.

    1,194    58,625

Taubman Centers Inc. (2)

    1,640    37,884

Thornburg Mortgage Inc. (2)

    2,613    72,458

Trizec Properties Inc.

    3,170    50,879

United Dominion Realty Trust Inc.

    4,017    77,890

Ventas Inc.

    2,727    69,593

Vornado Realty Trust

    3,474    201,805

Washington Real Estate Investment Trust

    1,401    39,144

Weingarten Realty Investors (2)

    2,672    82,298
         
          6,509,685

RETAIL—6.14%

          

Abercrombie & Fitch Co. Class A

    3,155    116,356

Advance Auto Parts Inc. (1)

    2,342    86,935

Aeropostale Inc. (1)

    1,749    53,310

American Eagle Outfitters Inc. (1)

    1,832    60,035

AnnTaylor Stores Corp. (1)

    2,199    59,021

Applebee’s International Inc. (2)

    2,800    74,592

AutoNation Inc. (1)

    6,208    100,073

AutoZone Inc. (1)

    2,115    163,278

Barnes & Noble Inc. (1)

    1,758    60,440

Bed Bath & Beyond Inc. (1)

    9,752    345,123

Best Buy Co. Inc.

    8,688    418,414

Big Lots Inc. (1) (2)

    3,899    47,724

BJ’s Wholesale Club Inc. (1) (2)

    2,170    50,583

Bob Evans Farms Inc. (2)

    1,171    31,172

Borders Group Inc.

    2,623    59,988

Brinker International Inc. (1)

    3,266    116,955

CarMax Inc. (1) (2)

    3,496    72,717

Casey’s General Store Inc. (2)

    1,599    25,872

Cato Corp. Class A

    574    11,979

CBRL Group Inc.

    1,557    51,724

CEC Entertainment Inc. (1)

    1,320    47,982

Charming Shoppes Inc. (1) (2)

    3,642    26,732

Cheesecake Factory (The) (1) (2)

    1,572    65,662

Chico’s FAS Inc. (1) (2)

    2,892    121,088

Children’s Place Retail Stores Inc. (The) (1)

    476    9,758

Christopher & Banks Corp. (2)

    1,151    18,842

Circuit City Stores Inc.

    6,188    87,251

Claire’s Stores Inc.

    2,600    59,930

Copart Inc. (1)

    2,092    46,547

Cost Plus Inc. (1)

    715    23,924

Costco Wholesale Corp.

    15,035    611,323

CVS Corp.

    12,887    539,579

Darden Restaurants Inc.

    4,810    102,597

Dillard’s Inc. Class A (2)

    2,128    48,497

Dollar General Corp.

    9,646    186,168

Dollar Tree Stores Inc. (1)

    3,773    101,531

Dress Barn Inc. (1)

    568    9,514

Duane Reade Inc. (1)

    592    9,750

Family Dollar Stores Inc.

    5,330    148,494

Federated Department Stores Inc.

    5,877    281,626

Foot Locker Inc.

    4,644    104,490

Fred’s Inc. (2)

    998    18,014

Gap Inc. (The)

    21,598    490,275

Genesco Inc. (1) (2)

    713    15,301

Guitar Center Inc. (1)

    752    33,802

Hollywood Entertainment Corp. (1) (2)

    1,861    24,026

Home Depot Inc.

    73,408    2,475,318

Hot Topic Inc. (1)

    1,455    23,164

IHOP Corp.

    710    26,263

Insight Enterprises Inc. (1)

    1,452    23,290

Jack in the Box Inc. (1)

    1,308    41,725

Kenneth Cole Productions Inc. Class A

    295    9,467

Kmart Holding Corp. (1) (2)

    1,277    98,878

Kohl’s Corp. (1)

    9,860    451,194

Krispy Kreme Doughnuts Inc. (1) (2)

    1,981    31,181

Limited Brands Inc.

    13,358    273,038

Linens ‘n Things Inc. (1)

    1,358    36,150

Lone Star Steakhouse & Saloon Inc.

    590    14,302

Longs Drug Stores Corp. (2)

    1,115    23,415

Lowe’s Companies Inc.

    23,221    1,131,327

May Department Stores Co. (The)

    9,362    248,374

McDonald’s Corp.

    41,224    1,133,660

Men’s Wearhouse Inc. (The) (1) (2)

    958    25,377

Michaels Stores Inc.

    2,181    117,839

MSC Industrial Direct Co. Inc. Class A (2)

    1,287    40,283

Neiman-Marcus Group Inc. Class A (2)

    972    53,023

99 Cents Only Stores (1) (2)

    1,617    23,172

Nordstrom Inc.

    3,336    146,450

Nu Skin Enterprises Inc. Class A (2)

    1,755    47,929

Office Depot Inc. (1)

    10,308    169,051

O’Reilly Automotive Inc. (1) (2)

    1,724    69,805

Outback Steakhouse Inc. (2)

    2,174    88,286

P.F. Chang’s China Bistro Inc. (1)

    730    32,434

Pacific Sunwear of California Inc. (1)

    2,598    52,999

Panera Bread Co. Class A (1) (2)

    912    33,644

Papa John’s International Inc. (1) (2)

    312    9,475

Payless ShoeSource Inc. (1) (2)

    2,190    28,339

Penney (J.C.) Co. Inc. (Holding Co.)

    8,997    359,880

Pep Boys-Manny, Moe & Jack Inc. (2)

    2,049    42,414

PETCO Animal Supplies Inc. (1)

    1,263    37,726

PETsMART Inc.

    4,803    148,941

Pier 1 Imports Inc.

    2,935    52,625

RadioShack Corp.

    5,272    147,352

Regis Corp.

    1,470    60,505

Rite Aid Corp. (1)

    14,310    70,262

Ross Stores Inc.

    5,022    116,259

 

Ruby Tuesday Inc.

    2,176    62,865

Ryan’s Restaurant Group Inc. (1)

    1,593    23,083

Saks Inc. (2)

    4,041    52,735

Sears, Roebuck and Co.

    6,556    240,474

ShopKo Stores Inc. (1) (2)

    873    13,575

Sonic Corp. (1)

    1,963    45,149

Sports Authority Inc. (The) (1)

    720    18,360

Staples Inc.

    16,115    465,401

Starbucks Corp. (1)

    12,941    607,709

Stein Mart Inc. (1)

    877    15,909

Talbots Inc. (The)

    703    21,652

Target Corp.

    26,953    1,175,151

Tiffany & Co.

    4,888    174,746

TJX Companies Inc.

    16,288    382,279

Toys R Us Inc. (1)

    6,966    114,660

Tractor Supply Co. (1) (2)

    1,229    44,564

Triarc Companies Inc. Class B (2)

    900    8,784

Tuesday Morning Corp. (1)

    826    26,564

Urban Outfitters Inc. (1) (2)

    1,860    55,316

Walgreen Co.

    33,585    1,222,494

Wal-Mart Stores Inc.

    86,627    4,592,097

Wendy’s International Inc.

    3,617    129,380

Williams-Sonoma Inc. (1) (2)

    3,065    99,582

Yum! Brands Inc.

    9,562    367,085

Zale Corp. (1)

    1,774    48,146
         
          23,261,570

SAVINGS & LOANS—0.76%

          

Anchor BanCorp Wisconsin Inc.

    723    18,393

Astoria Financial Corp.

    2,352    80,344

Commercial Federal Corp.

    1,396    36,757

Dime Community Bancshares

    1,051    17,468

Downey Financial Corp.

    723    38,861

First Niagara Financial Group Inc. (2)

    2,840    34,620

FirstFed Financial Corp. (1)

    571    25,872

Golden West Financial Corp.

    4,220    451,160

GreenPoint Financial Corp.

    3,569    145,009

Harbor Florida Bancshares Inc. (2)

    709    20,412

Hudson City Bancorp Inc. (2)

    2,317    80,307

Independence Community Bank Corp.

    2,565    95,777

MAF Bancorp Inc. (2)

    965    38,745

New York Community Bancorp Inc. (2)

    7,664    147,455

OceanFirst Financial Corp. (2)

    436    10,093

People’s Bank (2)

    3,036    95,664

PFF Bancorp Inc.

    405    14,872

Provident Financial Services Inc.

    2,534    44,725

Sovereign Bancorp Inc. (2)

    11,195    243,715

Washington Federal Inc.

    2,667    66,808

Washington Mutual Inc.

    28,161    1,092,647

Webster Financial Corp.

    1,820    85,394
         
          2,885,098

SEMICONDUCTORS—3.37%

          

Actel Corp. (1)

    858    12,887

Advanced Micro Devices Inc. (1) (2)

    11,470    143,260

Agere Systems Inc. Class A (1) (2)

    27,525    34,131

Agere Systems Inc. Class B (1)

    30,324    34,266

Altera Corp. (1)

    12,121    252,359

Amkor Technology Inc. (1)

    2,771    11,223

Analog Devices Inc.

    12,357    490,573

Applied Materials Inc. (1)

    54,872    931,178

Applied Micro Circuits Corp. (1)

    10,140    36,504

Asyst Technologies Inc. (1)

    1,178    6,821

Atmel Corp. (1)

    14,642    62,668

ATMI Inc. (1) (2)

    1,010    20,564

Axcelis Technologies Inc. (1) (2)

    3,327    31,041

Broadcom Corp. Class A (1)

    8,202    290,023

Brooks Automation Inc. (1) (2)

    1,444    20,808

Cirrus Logic Inc. (1)

    2,467    14,999

Cohu Inc.

    579    10,963

Conexant Systems Inc. (1)

    15,427    24,529

Credence Systems Corp. (1) (2)

    2,780    24,909

Cree Inc. (1) (2)

    2,467    55,211

Cypress Semiconductor Corp. (1)

    3,905    44,283

DSP Group Inc. (1)

    871    17,167

DuPont Photomasks Inc. (1) (2)

    450    7,353

Emulex Corp. (1)

    2,756    29,737

ESS Technology Inc. (1) (2)

    1,002    6,864

Exar Corp. (1)

    1,308    17,619

Fairchild Semiconductor International Inc. Class A (1)

    3,119    45,818

Helix Technology Corp.

    883    12,751

Integrated Circuit Systems Inc. (1)

    2,431    58,150

Integrated Device Technology Inc. (1)

    3,495    39,948

Intel Corp.

    211,504    5,156,468

International Rectifier Corp. (1)

    2,243    87,926

Intersil Corp. Class A

    4,512    82,885

KLA-Tencor Corp. (1)

    6,386    263,167

Kopin Corp. (1)

    2,187    8,376

Kulicke & Soffa Industries Inc. (1) (2)

    1,584    12,371

Lam Research Corp. (1) (2)

    4,551    108,541

Lattice Semiconductor Corp. (1) (2)

    3,336    16,346

Linear Technology Corp.

    10,036    392,408

LSI Logic Corp. (1)

    12,314    62,678

LTX Corp. (1)

    2,213    17,992

Marvell Technology Group Ltd. (1)

    6,218    144,382

Maxim Integrated Products Inc.

    10,453    502,789

Micrel Inc. (1) (2)

    2,308    23,703

Microchip Technology Inc.

    6,848    198,387

Micron Technology Inc. (1)

    19,778    267,596

Mindspeed Technologies Inc. (1)

    2,866    9,257

Mykrolis Corp. (1)

    1,324    13,240

National Semiconductor Corp. (1)

    11,768    201,821

Novellus Systems Inc. (1)

    4,957    133,839

NVIDIA Corp. (1)

    5,067    78,032

OmniVision Technologies Inc. (1) (2)

    1,688    19,885

Photronics Inc. (1) (2)

    880    12,734

PMC-Sierra Inc. (1)

    5,879    69,843

Power Integrations Inc. (1) (2)

    999    20,160

QLogic Corp. (1) (2)

    3,086    75,453

Rambus Inc. (1)

    3,243    54,385

Semtech Corp. (1)

    2,361    46,866

Silicon Image Inc. (1) (2)

    2,160    25,898

Silicon Laboratories Inc. (1) (2)

    1,153    40,689

Siliconix Inc. (1) (2)

    149    6,350

Skyworks Solutions Inc. (1)

    4,480    37,542

Teradyne Inc. (1)

    6,387    109,218

Texas Instruments Inc.

    56,577    1,206,787

Three-Five Systems Inc. (1)

    710    2,499

Transmeta Corp. (1) (2)

    3,737    4,223

TriQuint Semiconductor Inc. (1) (2)

    4,055    16,423

Ultratech Inc. (1) (2)

    829    10,329

Varian Semiconductor Equipment Associates Inc. (1) (2)

    1,148    34,291

Veeco Instruments Inc. (1) (2)

    870    19,793

Vitesse Semiconductor Corp. (1)

    6,654    18,631

Xilinx Inc.

    11,291    332,294

Zoran Corp. (1)

    1,289    22,802
         
          12,757,906

SOFTWARE—4.58%

          

Activision Inc. (1)

    4,362    63,903

Actuate Corp. (1)

    2,027    7,297

Acxiom Corp. (2)

    2,716    59,752

Adobe Systems Inc.

    7,736    326,304

Advent Software Inc. (1) (2)

    1,023    16,225

Ascential Software Corp. (1)

    1,919    23,565

Autodesk Inc.

    3,649    146,690

Automatic Data Processing Inc.

    19,203    806,142

Avid Technology Inc. (1) (2)

    1,012    47,301

BEA Systems Inc. (1)

    12,770    82,877

BMC Software Inc. (1)

    7,359    115,389

Borland Software Corp. (1)

    2,616    21,634

Cerner Corp. (1) (2)

    880    39,600

Certegy Inc.

    1,984    75,213

Citrix Systems Inc. (1)

    5,381    94,813

Computer Associates International Inc.

    15,215    384,027

Compuware Corp. (1)

    10,905    53,871

Concurrent Computer Corp. (1)

    2,013    3,301

CSG Systems International Inc. (1) (2)

    1,727    28,323

Dendrite International Inc. (1) (2)

    1,292    19,264

Dun & Bradstreet Corp. (1)

    2,318    130,133

eFunds Corp. (1)

    1,590    26,012

Electronic Arts Inc. (1)

    9,690    485,760

Fair Isaac Corp.

    2,213    63,248

FileNET Corp. (1)

    1,168    22,192

First Data Corp.

    28,417    1,267,682

Fiserv Inc. (1)

    6,373    218,339

Global Payments Inc.

    1,158    52,863

Hyperion Solutions Corp. (1)

    1,374    56,361

IDX Systems Corp. (1)

    597    17,928

IMS Health Inc.

    7,558    183,206

Informatica Corp. (1)

    2,886    17,518

Inter-Tel Inc. (2)

    706    15,313

Intuit Inc. (1)

    5,891    220,559

JDA Software Group Inc. (1) (2)

    1,056    11,246

Keane Inc. (1)

    1,887    27,871

Manugistics Group Inc. (1)

    1,902    5,231

Mercury Interactive Corp. (1)

    3,008    109,972

Micromuse Inc. (1)

    2,297    10,337

Microsoft Corp.

    332,763    9,470,435

MRO Software Inc. (1)

    579    6,143

NDCHealth Corp. (2)

    1,150    24,162

NetIQ Corp. (1) (2)

    1,749    16,668

Novell Inc. (1)

    12,314    84,228

Oracle Corp. (1)

    129,202    1,357,913

Packeteer Inc. (1)

    1,012    9,493

Parametric Technology Corp. (1)

    8,986    40,796

PeopleSoft Inc. (1)

    10,738    193,499

Pixar Inc. (1) (2)

    749    51,112

Quest Software Inc. (1) (2)

    1,727    20,828

Red Hat Inc. (1)

    4,768    81,628

Retek Inc. (1)

    1,613    6,549

SEI Investments Co.

    2,312    70,909

SERENA Software Inc. (1) (2)

    1,167    17,972

Siebel Systems Inc. (1)

    14,749    118,877

Sybase Inc. (1)

    3,301    48,096

Take-Two Interactive Software Inc. (1) (2)

    1,411    44,193

THQ Inc. (1) (2)

    1,304    24,841

Total System Services Inc.

    1,297    29,494

Veritas Software Corp. (1)

    14,103    268,803

Wind River Systems Inc. (1)

    2,334    22,873
         
          17,366,774

TELECOMMUNICATIONS—6.24%

          

Adaptec Inc. (1)

    3,495    26,178

ADC Telecommunications Inc. (1) (2)

    26,408    63,379

ADTRAN Inc.

    1,450    38,730

Advanced Fibre Communications Inc. (1)

    2,755    46,174

Aeroflex Inc. (1)

    2,168    24,043

Alltel Corp.

    10,074    523,848

Amdocs Ltd. (1)

    5,623    122,019

American Tower Corp. Class A (1) (2)

    7,591    109,766

Anaren Inc. (1) (2)

    742    8,897

Andrew Corp. (1)

    5,098    55,313

Arris Group Inc. (1) (2)

    1,750    7,691

Aspect Communications Corp. (1)

    1,060    8,978

AT&T Corp.

    26,127    394,518

AT&T Wireless Services Inc. (1)

    73,661    1,063,665

Audiovox Corp. Class A (1) (2)

    579    10,028

Avaya Inc. (1)

    14,408    211,077

BellSouth Corp.

    60,122    1,628,705

Black Box Corp. (2)

    595    22,610

C-COR Inc. (1)

    1,652    13,414

CenturyTel Inc.

    4,148    128,547

CIENA Corp. (1)

    18,338    51,713

Cincinnati Bell Inc. (1)

    8,118    32,797

Cisco Systems Inc. (1)

    221,119    4,612,542

Citizens Communications Co. (1)

    9,564    137,722

CommScope Inc. (1) (2)

    1,756    36,174

Computer Network Technology Corp. (1) (2)

    1,008    5,111

Comverse Technology Inc. (1)

    6,617    112,886

Corning Inc. (1)

    44,739    552,974

Crown Castle International Corp. (1) (2)

    7,339    103,627

Extreme Networks Inc. (1)

    3,901    21,143

Finisar Corp. (1) (2)

    4,787    7,252

Foundry Networks Inc. (1)

    3,644    37,387

Harmonic Inc. (1) (2)

    2,019    13,144

Harris Corp.

    2,205    104,693

IDT Corp. (1)

    302    4,681

IDT Corp. Class B (1)

    1,577    24,838

InterDigital Communications Corp. (1) (2)

    1,743    33,535

JDS Uniphase Corp. (1)

    46,119    159,111

Juniper Networks Inc. (1)

    15,995    367,245

Level 3 Communications Inc. (1) (2)

    20,308    61,533

Lucent Technologies Inc. (1) (2)

    139,943    426,826

Motorola Inc.

    76,795    1,223,344

MRV Communications Inc. (1) (2)

    2,746    8,279

Newport Corp. (1)

    1,300    18,642

Nextel Communications Inc. Class A (1)

    34,934    795,098

Nextel Partners Inc. Class A (1) (2)

    1,072    17,227

NII Holdings Inc. Class B (1) (2)

    1,822    69,272

NTL Inc. (1) (2)

    2,450    127,694

PanAmSat Corp. (1) (2)

    711    16,517

Plantronics Inc. (1)

    1,472    56,937

Polycom Inc. (1)

    3,307    63,759

Powerwave Technologies Inc. (1)

    4,157    23,030

QUALCOMM Inc.

    26,528    1,832,554

Qwest Communications International Inc. (1)

    48,831    189,953

REMEC Inc. (1) (2)

    2,050    9,594

RF Micro Devices Inc. (1) (2)

    6,407    37,929

SBC Communications Inc.

    108,382    2,746,400

Scientific-Atlanta Inc.

    5,057    155,503

Sonus Networks Inc. (1)

    7,879    40,104

SpectraSite Inc. (1)

    1,462    62,866

Sprint Corp. (FON Group)

    38,325    715,911

Stratex Networks Inc. (1)

    2,606    6,463

Sycamore Networks Inc. (1)

    6,382    23,869

Tekelec (1)

    2,000    38,860

Telephone & Data Systems Inc.

    1,698    128,878

Tellabs Inc. (1) (2)

    12,600    112,266

3Com Corp. (1)

    12,490    61,576

Tollgrade Communications Inc. (1)

    436    3,628

United States Cellular Corp. (1) (2)

    406    15,936

UTStarcom Inc. (1) (2)

    3,393    61,956

Verizon Communications Inc.

    90,633    3,492,996

Western Wireless Corp. Class A (1) (2)

    2,303    60,776

Wireless Facilities Inc. (1)

    1,773    13,262
         
          23,645,593

TEXTILES—0.09%

          

Cintas Corp.

    4,478    187,897

G&K Services Inc. Class A

    710    27,349

Mohawk Industries Inc. (1)

    1,732    127,371
         
          342,617

TOYS, GAMES & HOBBIES—0.10%

          

Hasbro Inc.

    5,182    94,157

Jakks Pacific Inc. (1) (2)

    733    14,711

Marvel Enterprises Inc. (1)

    2,602    33,956

Mattel Inc.

    13,756    241,005
         
          383,829

TRANSPORTATION—1.18%

          

Alexander & Baldwin Inc.

    1,305    42,908

Arkansas Best Corp. (2)

    730    25,528

Burlington Northern Santa Fe Corp.

    12,039    427,144

CH Robinson Worldwide Inc. (2)

    2,586    113,086

CNF Inc.

    1,600    66,016

CSX Corp.

    6,976    218,349

EGL Inc. (1)

    1,170    29,730

Expeditors International Washington Inc. (2)

    3,486    161,785

FedEx Corp.

    9,064    742,160

Hunt (J.B.) Transport Services Inc.

    1,935    74,323

Kansas City Southern Industries Inc. (1) (2)

    2,155    31,506

Landstar System Inc. (1)

    912    45,427

Norfolk Southern Corp.

    12,691    338,723

Offshore Logistics Inc. (1)

    746    21,597

Overseas Shipholding Group Inc.

    729    32,739

Ryder System Inc.

    2,055    88,160

SCS Transportation Inc. (1)

    445    11,459

Swift Transportation Co. Inc. (1)

    1,889    37,733

Union Pacific Corp.

    8,424    474,608

United Parcel Service Inc. Class B

    18,821    1,354,359

USF Corp.

    879    31,205

Werner Enterprises Inc.

    1,978    39,422

Yellow Roadway Corp. (1)

    1,322    57,520
         
          4,465,487

TRUCKING & LEASING—0.01%

          

GATX Corp. (2)

    1,161    29,582
         
          29,582

WATER—0.02%

          

Aqua America Inc. (2)

    3,136    60,995
         
          60,995

TOTAL COMMON STOCKS
(Cost: $352,079,896)

         378,524,809
         

Security

    Shares or Principal
    Value

SHORT-TERM INVESTMENTS—5.70%

          

MONEY MARKET FUNDS—1.43%

          

Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares (3) (5)

    3,368,145    3,368,145

Barclays Global Investors Funds Prime Money Market Fund, Institutional Shares (3) (5)

    1,820,716    1,820,716

BlackRock Temp Cash Money Market Fund (3)

    83,557    83,557

Short-Term Investment Co.—Prime Money Market Portfolio (3)

    142,406    142,406
         
          5,414,824

FLOATING RATE NOTES—1.38%

          

Beta Finance Inc.

          

1.30%, 05/04/05 (3) (4)

    99,312    99,297

1.31%, 10/12/04 (3) (4)

    82,760    82,758

1.34%, 09/15/04 (3) (4)

    165,520    165,518

1.42%, 03/15/05 (3) (4)

    82,760    82,801

1.48%, 08/23/04 (3) (4)

    82,760    82,764

Canadian Imperial Bank of Commerce

          

1.24%, 10/07/04 (3)

    124,140    124,136

1.38%, 11/22/04 (3)

    41,380    41,381

1.40%, 10/29/04 (3)

    165,520    165,519

CC USA Inc.

          

1.30%, 05/04/05 (3) (4)

    165,520    165,495

1.61%, 07/29/05 (3) (4)

    165,520    165,470

Depfa Bank PLC

          

1.27%, 06/15/05 (3)

    165,520    165,520

Dorada Finance Inc.

          

1.61%, 07/29/05 (3) (4)

    137,381    137,340

Five Finance Inc.

          

1.42%, 04/29/05 (3) (4)

    132,416    132,406

HBOS Treasury Services PLC

          

1.24%, 04/01/05 (3)

    105,933    105,926

1.58%, 04/22/05 (3)

    165,520    165,520

K2 USA LLC

          

1.34%, 08/16/04 (3) (4)

    41,380    41,380

1.41%, 09/27/04 (3) (4)

    178,761    178,757

1.49%, 06/10/05 (3) (4)

    165,520    165,503

1.61%, 07/25/05 (3) (4)

    82,760    82,744

Links Finance LLC

          

1.33%, 04/15/05 (3)

    165,520    165,496

1.68%, 04/25/05 (3)

    165,520    165,598

Nationwide Building Society

          

1.59%, 07/28/05 (3) (4)

    165,520    165,520

1.63%, 12/09/04 (3)

    137,381    136,579

Northern Rock PLC

          

1.56%, 01/13/05 (3) (4)

    157,244    157,244

Permanent Financing PLC

          

1.31%, 03/10/05 (3)

    165,520    165,520

1.32%, 12/10/04 (3)

    82,760    82,760

1.34%, 06/10/05 (3)

    74,484    74,484

Sigma Finance Inc.

          

1.35%, 11/15/04 (3)

    165,520    165,516

1.52%, 10/07/04 (3)

    165,520    165,514

Tango Finance Corp.

          

1.20%, 05/17/05 (3) (4)

    137,381    137,376

1.23%, 02/25/05 (3) (4)

    92,691    92,681

1.32%, 04/07/05 (3) (4)

    60,746    60,742

1.34%, 01/18/05 (3) (4)

    72,829    72,825

1.42%, 07/25/05 (3) (4)

    165,520    165,503

WhistleJacket Capital LLC

          

1.26%, 10/20/04 (3) (4)

    40,999    40,886

1.34%, 09/15/04 (3) (4)

    82,760    82,758

1.38%, 07/15/05 (3) (4)

    124,140    124,116

1.48%, 06/15/05 (3) (4)

    82,760    82,743

White Pine Finance LLC

          

1.21%, 05/20/05 (3) (4)

    74,484    74,478

1.33%, 04/15/05 (3) (4)

    124,140    124,122

1.33%, 07/05/05 (3) (4)

    82,760    82,743

1.34%, 11/15/04 (3) (4)

    99,312    99,312

1.35%, 06/15/05 (3) (4)

    67,863    67,863

1.40%, 08/26/04 (3) (4)

    82,760    82,759

1.55%, 07/11/05 (3) (4)

    41,380    41,376
         
          5,226,749

COMMERCIAL PAPER—1.04%

          

Alpine Securitization Corp.

          

1.31%, 08/12/04 (3)

    82,760    82,730

Amsterdam Funding Corp.

          

1.30%, 08/13/04 (3)

    124,140    124,090

1.33%, 08/16/04 (3)

    165,520    165,434

1.35%, 08/20/04 (3)

    49,656    49,622

1.37%, 08/24/04 (3)

    57,932    57,883

Barton Capital Corp.

          

1.29%, 08/10/04 (3)

    82,760    82,736

1.30%, 08/13/04 (3)

    68,032    68,005

1.35%, 08/18/04 (3)

    41,380    41,355

Blue Ridge Asset Funding Corp.

          

1.29%, 08/06/04 (3)

    82,760    82,748

Corporate Asset Funding

          

1.42%, 09/03/04 (3)

    49,656    49,593

CRC Funding LLC

          

1.42%, 09/03/04 (3)

    82,760    82,655

Edison Asset Securitization

          

1.07%, 09/21/04 (3)

    82,760    82,637

1.45%, 11/09/04 (3)

    165,520    164,860

1.59%, 12/02/04 (3)

    165,520    164,628

Falcon Asset Securitization Corp.

          

1.29%, 08/09/04 (3)

    157,244    157,205

1.30%, 08/03/04 (3)

    82,760    82,757

1.34%, 08/19/04 (3)

    82,760    82,707

1.37%, 08/24/04 (3)

    66,208    66,152

Ford Credit Auto Receivables

          

1.85%, 01/14/05 (3)

    82,760    82,058

GIRO Funding US Corp.

          

1.55%, 10/15/04 (3)

    108,539    108,194

Grampian Funding LLC

          

1.26%, 10/22/04 (3)

    165,520    165,052

1.44%, 10/27/04 (3)

    165,520    164,950

1.59%, 11/30/04 (3)

    82,760    82,321

Jupiter Securitization Corp.

          

1.30%, 08/12/04 (3)

    82,760    82,730

1.37%, 08/20/04 (3)

    110,734    110,658

Park Avenue Receivables Corp.

          

1.35%, 08/19/04 (3)

    82,760    82,707

Preferred Receivables Funding Corp.

          

1.29%, 08/05/04 (3)

    76,450    76,442

1.36%, 08/23/04 (3)

    82,760    82,694

Receivables Capital Corp.

          

1.30%, 08/12/04 (3)

    57,932    57,911

1.34%, 08/16/04 (3)

    9,898    9,893

1.35%, 08/18/04 (3)

    74,484    74,439

1.35%, 08/19/04 (3)

    28,138    28,120

Scaldis Capital LLC

          

1.34%, 08/16/04 (3)

    165,520    165,433

1.37%, 08/20/04 (3)

    24,828    24,811

1.40%, 08/25/04 (3)

    206,900    206,714

Sydney Capital Corp.

          

1.25%, 10/22/04 (3)

    55,085    54,931

1.31%, 08/12/04 (3)

    66,208    66,184

Thames Asset Global Securitization No. 1 Inc.

          

1.30%, 08/12/04 (3)

    87,351    87,320

1.34%, 08/16/04 (3)

    46,345    46,321

1.36%, 08/20/04 (3)

    124,140    124,056

1.37%, 08/19/04 (3)

    46,235    46,205

1.37%, 08/20/04 (3)

    21,518    21,503

Windmill Funding Corp.

          

1.29%, 08/06/04 (3)

    206,864    206,864
         
          3,946,308

TIME DEPOSITS—0.91%

          

Abbey National Treasury Services PLC

          

1.25%, 01/06/05 (3)

    165,520    165,520

1.33%, 02/10/05 (3)

    82,760    82,753

1.39%, 02/02/05 (3)

    82,760    82,754

1.39%, 04/08/05 (3)

    115,864    115,852

1.40%, 10/25/04 (3)

    165,520    165,514

Bank of New York

          

1.39%, 11/01/04 (3)

    165,520    165,516

1.60%, 12/03/04 (3)

    41,380    41,373

Bank of Nova Scotia

          

1.13%, 10/06/04 (3)

    165,520    165,520

1.24%, 10/07/04 (3)

    124,140    124,137

1.42%, 10/29/04 (3)

    124,140      124,142  

National City Bank (Cleveland, Ohio)

              

1.25%, 01/06/05 (3)

    165,520      165,523  

1.35%, 06/10/05 (3)

    82,760      82,782  

1.36%, 06/23/05 (3)

    165,520      165,475  

Norddeutsche Landesbank

              

1.59%, 07/27/05 (3)

    165,520      165,462  

Nordea Bank PLC

              

2.11%, 06/07/05 (3)

    165,520      165,492  

Prudential Funding LLC

              

1.60%, 12/01/04 (3)

    82,760      82,315  

Toronto-Dominion Bank

              

1.22%, 03/23/05 (3)

    289,659      289,627  

1.34%, 02/10/05 (3)

    66,208      66,203  

1.41%, 11/01/04 (3)

    124,140      124,137  

1.77%, 05/10/05 (3)

    82,760      82,753  

1.90%, 05/11/05 (3)

    82,760      82,753  

UBS Finance (Delaware)

              

1.10%, 09/08/04 (3)

    165,520      165,333  

1.11%, 12/17/04 (3)

    248,279      247,231  

1.13%, 08/09/04 (3)

    165,520      165,483  

1.14%, 09/29/04 (3)

    165,520      165,217  
         
            3,448,867  

REPURCHASE AGREEMENTS—0.55%

              

Banc of America Securities LLC

              

1.34%, 08/02/04 (3) (6)

    430,351      430,351  

Bank of America, N.A.

              

1.37%, 08/02/04 (3) (6)

    827,598      827,598  

Goldman Sachs & Co.

              

1.37%, 08/02/04 (3) (6)

    827,598      827,598  
         
            2,085,547  

U.S. GOVERNMENT AGENCY NOTES—0.23%

              

Federal Home Loan Mortgage Corp.

              

1.28%, 08/19/04 (3)

    66,208      66,168  

1.63%, 04/15/05 (3)

    115,864      116,123  

1.80%, 01/18/05 (3)

    76,967      76,316  

1.80%, 01/19/05 (3)

    82,760      82,056  

2.06%, 05/31/05 (3)

    82,517      81,091  

Federal National Mortgage Association

              

1.28%, 08/20/04 (3)

    215,176      215,038  

2.33%, 07/22/05 (3)

    248,279      242,603  
         
            879,395  

MEDIUM-TERM NOTES—0.16%

              

CC USA Inc.

              

1.29%, 04/15/05 (3) (4)

    165,520      165,508  

1.51%, 02/15/05 (3) (4)

    107,588      107,678  

Dorada Finance Inc.

              

1.24%, 08/09/04 (3) (4)

    41,380      41,380  

1.48%, 01/18/05 (3) (4)

    124,140      124,137  

K2 USA LLC

              

1.46%, 01/12/05 (3) (4)

    82,760      82,756  

Sigma Finance Inc.

              

1.24%, 08/06/04 (3)

    41,380      41,380  

WhistleJacket Capital LLC

              

1.32%, 02/04/05 (3) (4)

    41,380      41,376  
         
            604,215  

TOTAL SHORT-TERM INVESTMENTS
(Cost: $21,605,905)

           21,605,905  
         

TOTAL INVESTMENTS IN SECURITIES —105.58%
(Cost: $373,685,801) (7)

           400,130,714  

Other Assets, Less Liabilities —(5.58%)

           (21,132,062 )
         

NET ASSETS —100.00%

         $ 378,998,652  
         

NVS - Non-Voting Shares

 

(1) Non-income earning security.
(2) All or a portion of this security represents a security on loan.
(3) All or a portion of this security represents an investment of securities lending collateral.

(4) Security exempt from registration pursuant to Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.
(5) Issuer is an affiliate of the Fund’s investment adviser.
(6) Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 3.61% to 7.00% and maturity dates ranging from 7/1/13 to 7/1/34.
(7) The cost of investments for federal income tax purposes was $381,523,104. Net unrealized appreciation aggregated $18,607,610, of which $45,759,558 represented gross unrealized appreciation on securities and $27,151,948 represented gross unrealized depreciation on securities.

Schedule of Investments (Unaudited)

iSHARES® DOW JONES U.S. BASIC MATERIALS SECTOR INDEX FUND

July 31, 2004

 

Security

    Shares
    Value

COMMON STOCKS—99.98%

            

BIOTECHNOLOGY—0.17%

            

Cambrex Corp. (1)

    24,050    $ 530,302
         
            530,302

CHEMICALS—54.41%

            

Air Products & Chemicals Inc.

    207,617      10,744,180

Airgas Inc. (1)

    61,547      1,338,647

Albemarle Corp. (1)

    32,120      989,296

Cabot Corp.

    60,678      2,310,618

Cabot Microelectronics Corp. (1) (2)

    24,155      857,261

Crompton Corp.

    111,677      666,712

Cytec Industries Inc. (1)

    34,924      1,627,458

Dow Chemical Co. (The)

    912,722      36,408,481

Du Pont (E.I.) de Nemours and Co.

    975,195      41,806,610

Eastman Chemical Co. (1)

    75,467      3,371,866

Ecolab Inc.

    180,274      5,498,357

Engelhard Corp.

    121,120      3,560,928

Ferro Corp. (1)

    40,747      811,273

FMC Corp. (1) (2)

    33,497      1,472,193

Fuller (H.B.) Co. (1)

    27,739      741,463

Georgia Gulf Corp. (1)

    32,143      1,142,684

Great Lakes Chemical Corp. (1)

    42,795      1,026,224

Hercules Inc. (2)

    96,505      1,139,724

IMC Global Inc. (1)

    102,219      1,395,289

International Flavors & Fragrances Inc.

    78,625      2,872,957

Lubrizol Corp.

    50,281      1,741,231

Lyondell Chemical Co. (1)

    138,687      2,521,330

MacDermid Inc.

    21,883      640,297

Millennium Chemicals Inc. (1) (2)

    63,450      1,119,892

Minerals Technologies Inc. (1)

    19,980      1,116,283

Olin Corp. (1)

    67,658      1,169,130

OM Group Inc. (1) (2)

    27,733      888,011

PPG Industries Inc.

    167,273      9,860,743

Praxair Inc.

    316,826      12,498,786

Rohm & Haas Co.

    141,605      5,550,916

RPM International Inc.

    112,997      1,700,605

Schulman (A.) Inc.

    29,546      615,148

Sensient Technologies Corp. (1)

    42,647      880,234

Sigma-Aldrich Corp.

    57,829      3,321,698

Valspar Corp. (The)

    46,346      2,270,954

Wellman Inc. (1)

    31,011      218,317
         
            165,895,796

FOREST PRODUCTS & PAPER—18.65%

            

Boise Cascade Corp.

    85,429      2,755,085

Bowater Inc. (1)

    54,187      2,021,175

Caraustar Industries Inc. (1) (2)

    27,859      388,633

Georgia-Pacific Corp.

    219,325    7,369,320

International Paper Co.

    473,317    20,461,494

Louisiana-Pacific Corp.

    99,451    2,355,000

MeadWestvaco Corp.

    196,474    5,866,714

Pope & Talbot Inc. (1)

    14,670    287,825

Potlatch Corp. (1)

    28,791    1,154,231

Wausau-Mosinee Paper Corp. (1)

    47,186    733,270

Weyerhaeuser Co.

    217,130    13,462,060
         
          56,854,807

HOUSEHOLD PRODUCTS & WARES—2.03%

          

Avery Dennison Corp.

    95,204    5,766,506

WD-40 Co. (1)

    15,711    414,456
         
          6,180,962

IRON & STEEL—5.09%

          

AK Steel Holding Corp. (2)

    100,981    669,504

Allegheny Technologies Inc.

    75,730    1,518,386

Carpenter Technology Corp.

    19,998    859,914

Cleveland-Cliffs Inc. (1) (2)

    10,378    680,174

Nucor Corp.

    69,924    5,849,143

Ryerson Tull Inc. (1)

    22,105    339,091

Steel Dynamics Inc. (1)

    42,054    1,377,269

United States Steel Corp. (1)

    110,573    4,217,254
         
          15,510,735

MANUFACTURING—0.12%

          

Tredegar Corp. (1)

    22,034    363,120
         
          363,120

METAL FABRICATE & HARDWARE—0.46%

          

Worthington Industries Inc.

    68,493    1,402,737
         
          1,402,737

MINING—19.05%

          

Alcoa Inc.

    847,627    27,149,493

Coeur d’Alene Mines Corp. (1) (2)

    208,637    721,884

Freeport-McMoRan Copper & Gold Inc.

    144,334    5,030,040

Meridian Gold Inc. (1) (2)

    96,607    1,281,009

Newmont Mining Corp.

    392,214    15,872,901

Phelps Dodge Corp. (2)

    91,151    7,104,309

RTI International Metals Inc. (1) (2)

    20,664    309,753

Stillwater Mining Co. (1) (2)

    42,909    624,326
         
          58,093,715

TOTAL COMMON STOCKS
(Cost: $301,326,877)

         304,832,174
         

Security

    Shares or Principal
    Value

SHORT-TERM INVESTMENTS—8.24%

          

MONEY MARKET FUNDS—2.08%

          

Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares (3) (5)

    3,966,318    3,966,318

Barclays Global Investors Funds Prime Money Market Fund, Institutional Shares (3) (5)

    2,111,050    2,111,050

BlackRock Temp Cash Money Market Fund (3)

    96,882    96,882

Short-Term Investment Co. - Prime Money Market Portfolio (3)

    165,115    165,115
         
          6,339,365

FLOATING RATE NOTES—1.99%

          

Beta Finance Inc.

          

1.30%, 05/04/05 (3) (4)

    115,148    115,131

1.31%, 10/12/04 (3) (4)

    95,957    95,955

1.34%, 09/15/04 (3) (4)

    191,914    191,911

1.42%, 03/15/05 (3) (4)

    95,957    96,004

1.48%, 08/23/04 (3) (4)

    95,957    95,961

Canadian Imperial Bank of Commerce

          

1.24%, 10/07/04 (3)

    143,935    143,931

1.38%, 11/22/04 (3)

    47,978    47,980

1.40%, 10/29/04 (3)

    191,914    191,912

CC USA Inc.

          

1.30%, 05/04/05 (3) (4)

    191,914    191,885

1.61%, 07/29/05 (3) (4)

    191,914    191,857

Depfa Bank PLC

          

1.27%, 06/15/05 (3)

    191,914    191,914

Dorada Finance Inc.

          

1.61%, 07/29/05 (3) (4)

    159,288    159,241

Five Finance Inc.

          

1.42%, 04/29/05 (3) (4)

    153,531    153,520

HBOS Treasury Services PLC

          

1.24%, 04/01/05 (3)

    122,825    122,817

1.58%, 04/22/05 (3)

    191,914    191,914

K2 USA LLC

          

1.34%, 08/16/04 (3) (4)

    47,978    47,978

1.41%, 09/27/04 (3) (4)

    207,267    207,262

1.49%, 06/10/05 (3) (4)

    191,914    191,894

1.61%, 07/25/05 (3) (4)

    95,957    95,938

Links Finance LLC

          

1.33%, 04/15/05 (3)

    191,914    191,887

1.68%, 04/25/05 (3)

    191,914    192,005

Nationwide Building Society

          

1.59%, 07/28/05 (3) (4)

    191,914    191,914

1.63%, 12/09/04 (3)

    159,288    158,358

Northern Rock PLC

          

1.56%, 01/13/05 (3) (4)

    182,318    182,318

Permanent Financing PLC

          

1.31%, 03/10/05 (3)

    191,914    191,914

1.32%, 12/10/04 (3)

    95,957    95,957

1.34%, 06/10/05 (3)

    86,361    86,361

Sigma Finance Inc.

          

1.35%, 11/15/04 (3)

    191,914    191,909

1.52%, 10/07/04 (3)

    191,914    191,907

Tango Finance Corp.

          

1.20%, 05/17/05 (3) (4)

    159,288    159,282

1.23%, 02/25/05 (3) (4)

    107,472    107,459

1.32%, 04/07/05 (3) (4)

    70,432    70,428

1.34%, 01/18/05 (3) (4)

    84,442    84,438

1.42%, 07/25/05 (3) (4)

    191,914    191,895

WhistleJacket Capital LLC

          

1.26%, 10/20/04 (3) (4)

    47,537    47,406

1.34%, 09/15/04 (3) (4)

    95,957    95,955

1.38%, 07/15/05 (3) (4)

    143,935    143,908

1.48%, 06/15/05 (3) (4)

    95,957    95,938

 

White Pine Finance LLC

          

1.21%, 05/20/05 (3) (4)

    86,361    86,354

1.33%, 04/15/05 (3) (4)

    143,935    143,915

1.33%, 07/05/05 (3) (4)

    95,957    95,937

1.34%, 11/15/04 (3) (4)

    115,148    115,148

1.35%, 06/15/05 (3) (4)

    78,685    78,685

1.40%, 08/26/04 (3) (4)

    95,957    95,956

1.55%, 07/11/05 (3) (4)

    47,978    47,973
         
          6,060,212

COMMERCIAL PAPER—1.50%

          

Alpine Securitization Corp.

          

1.31%, 08/12/04 (3)

    95,957    95,922

Amsterdam Funding Corp.

          

1.30%, 08/13/04 (3)

    143,935    143,878

1.33%, 08/16/04 (3)

    191,914    191,814

1.35%, 08/20/04 (3)

    57,574    57,535

1.37%, 08/24/04 (3)

    67,170    67,114

Barton Capital Corp.

          

1.29%, 08/10/04 (3)

    95,957    95,929

1.30%, 08/13/04 (3)

    78,880    78,849

1.35%, 08/18/04 (3)

    47,978    47,950

Blue Ridge Asset Funding Corp.

          

1.29%, 08/06/04 (3)

    95,957    95,943

Corporate Asset Funding

          

1.42%, 09/03/04 (3)

    57,574    57,501

CRC Funding LLC

          

1.42%, 09/03/04 (3)

    95,957    95,836

Edison Asset Securitization

          

1.07%, 09/21/04 (3)

    95,957    95,814

1.45%, 11/09/04 (3)

    191,914    191,148

1.59%, 12/02/04 (3)

    191,914    190,880

Falcon Asset Securitization Corp.

          

1.29%, 08/09/04 (3)

    182,318    182,272

1.30%, 08/03/04 (3)

    95,957    95,953

1.34%, 08/19/04 (3)

    95,957    95,896

1.37%, 08/24/04 (3)

    76,765    76,701

Ford Credit Auto Receivables

          

1.85%, 01/14/05 (3)

    95,957    95,143

GIRO Funding US Corp.

          

1.55%, 10/15/04 (3)

    125,847    125,447

Grampian Funding LLC

          

1.26%, 10/22/04 (3)

    191,914    191,372

1.44%, 10/27/04 (3)

    191,914    191,253

1.59%, 11/30/04 (3)

    95,957    95,448

Jupiter Securitization Corp.

          

1.30%, 08/12/04 (3)

    95,957    95,922

1.37%, 08/20/04 (3)

    128,392    128,304

Park Avenue Receivables Corp.

          

1.35%, 08/19/04 (3)

    95,957    95,896

Preferred Receivables Funding Corp.

          

1.29%, 08/05/04 (3)

    88,641    88,632

1.36%, 08/23/04 (3)

    95,957    95,881

Receivables Capital Corp.

          

1.30%, 08/12/04 (3)

    67,170    67,146

1.34%, 08/16/04 (3)

    11,476    11,470

1.35%, 08/18/04 (3)

    86,361    86,310

1.35%, 08/19/04 (3)

    32,625    32,605

Scaldis Capital LLC

          

1.34%, 08/16/04 (3)

    191,914    191,814

1.37%, 08/20/04 (3)

    28,787    28,767

1.40%, 08/25/04 (3)

    239,892    239,677

Sydney Capital Corp.

          

1.25%, 10/22/04 (3)

    63,869    63,689

1.31%, 08/12/04 (3)

    76,765    76,738

Thames Asset Global Securitization No. 1 Inc.

          

1.30%, 08/12/04 (3)

    101,281    101,244

1.34%, 08/16/04 (3)

    53,736    53,708

1.36%, 08/20/04 (3)

    143,935    143,837

1.37%, 08/19/04 (3)

    53,607    53,573

1.37%, 08/20/04 (3)

    24,949    24,932

Windmill Funding Corp.

          

1.29%, 08/06/04 (3)

    239,892    239,858
         
          4,575,601

TIME DEPOSITS—1.31%

          

Abbey National Treasury Services PLC

          

1.25%, 01/06/05 (3)

    191,914    191,914

1.33%, 02/10/05 (3)

    95,957    95,949

1.39%, 02/02/05 (3)

    95,957    95,946

1.39%, 04/08/05 (3)

    134,340    134,326

1.40%, 10/25/04 (3)

    191,914    191,907

Bank of New York

          

1.39%, 11/01/04 (3)

    191,914    191,909

1.60%, 12/03/04 (3)

    47,978    47,970

Bank of Nova Scotia

          

1.13%, 10/06/04 (3)

    191,914    191,914

1.24%, 10/07/04 (3)

    143,935    143,933

1.42%, 10/29/04 (3)

    143,935    143,938

National City Bank (Cleveland, Ohio)

          

1.25%, 01/06/05 (3)

    191,914    191,918

1.35%, 06/10/05 (3)

    95,957    95,982

1.36%, 06/23/05 (3)

    191,914    191,862

Norddeutsche Landesbank

          

1.59%, 07/27/05 (3)

    191,914    191,847

Nordea Bank PLC

          

2.11%, 06/07/05 (3)

    191,914    191,881

Prudential Funding LLC

          

1.60%, 12/01/04 (3)

    95,957    95,441

Toronto-Dominion Bank

          

1.22%, 03/23/05 (3)

    335,849    335,811

1.34%, 02/10/05 (3)

    76,765    76,759

1.41%, 11/01/04 (3)

    143,935    143,932

1.77%, 05/10/05 (3)

    95,957    95,949

1.90%, 05/11/05 (3)

    95,957    95,949

UBS Finance (Delaware)

          

1.10%, 09/08/04 (3)

    191,914    191,697

1.11%, 12/17/04 (3)

    287,870    286,654

1.13%, 08/09/04 (3)

    191,914    191,871

1.14%, 09/29/04 (3)

    191,914    191,563
         
          3,998,822

REPURCHASE AGREEMENTS—0.79%

          

Banc of America Securities LLC

          

1.34%, 08/02/04 (3) (6)

    498,975    498,975

Bank of America, N.A.

          

1.37%, 08/02/04 (3) (6)

    959,568    959,568

Goldman Sachs & Co.

              

1.37%, 08/02/04 (3) (6)

    959,568      959,568  
         
            2,418,111  

U.S. GOVERNMENT AGENCY NOTES—0.34%

              

Federal Home Loan Mortgage Corp.

              

1.28%, 08/19/04 (3)

    76,765      76,719  

1.63%, 04/15/05 (3)

    134,340      134,640  

1.80%, 01/18/05 (3)

    89,240      88,486  

1.80%, 01/19/05 (3)

    95,957      95,141  

2.06%, 05/31/05 (3)

    95,675      94,021  

Federal National Mortgage Association

              

1.28%, 08/20/04 (3)

    249,488      249,328  

2.33%, 07/22/05 (3)

    287,870      281,289  
         
            1,019,624  

MEDIUM-TERM NOTES—0.23%

              

CC USA Inc.

              

1.29%, 04/15/05 (3) (4)

    191,914      191,900  

1.51%, 02/15/05 (3) (4)

    124,744      124,849  

Dorada Finance Inc.

              

1.24%, 08/09/04 (3) (4)

    47,978      47,978  

1.48%, 01/18/05 (3) (4)

    143,935      143,932  

K2 USA LLC

              

1.46%, 01/12/05 (3) (4)

    95,957      95,953  

Sigma Finance Inc.

              

1.24%, 08/06/04 (3)

    47,978      47,978  

WhistleJacket Capital LLC

              

1.32%, 02/04/05 (3) (4)

    47,978      47,974  
         
            700,564  

TOTAL SHORT-TERM INVESTMENTS
(Cost: $25,112,299)

           25,112,299  
         

TOTAL INVESTMENTS IN SECURITIES — 108.22%
(Cost: $326,439,176) (7)

           329,944,473  

Other Assets, Less Liabilities — (8.22%)

           (25,065,574 )
         

NET ASSETS — 100.00%

         $ 304,878,899  
         
(1) All or a portion of this security represents a security on loan.
(2) Non-income earning security.
(3) All or a portion of this security represents an investment of securities lending collateral.
(4) Security exempt from registration pursuant to Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.
(5) Issuer is an affiliate of the Fund’s investment adviser.
(6) Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 3.61% to 7.00% and maturity dates ranging from 7/1/13 to 7/1/34.
(7) The cost of investments for federal income tax purposes was $327,805,748. Net unrealized appreciation aggregated $2,138,725, of which $12,487,525 represented gross unrealized appreciation on securities and $10,348,800 represented gross unrealized depreciation on securities.

Schedule of Investments (Unaudited)

iSHARES® DOW JONES U.S. CONSUMER CYCLICAL SECTOR INDEX FUND

July 31, 2004

 

Security

    Shares
    Value

COMMON STOCKS—100.02%

            

ADVERTISING—1.71%

            

ADVO Inc.

    3,773    $ 116,925

Catalina Marketing Corp. (1) (2)

    5,523      110,294

Donnelley (R.H.) Corp. (1)

    3,809      172,852

Harte-Hanks Inc.

    6,154      148,681

Interpublic Group of Companies Inc. (1)

    51,319      656,370

Lamar Advertising Co. (1) (2)

    10,191      409,780

Omnicom Group Inc.

    23,079      1,662,150

ValueVision Media Inc. Class A (1) (2)

    3,134      36,229
         
            3,313,281

AIRLINES—1.12%

            

AirTran Holdings Inc. (1) (2)

    10,288      114,711

Alaska Air Group Inc. (1) (2)

    2,980      62,073

AMR Corp. (1) (2)

    19,680      165,902

Atlantic Coast Airlines Holdings Inc. (1) (2)

    5,784      21,227

Continental Airlines Inc. Class B (1) (2)

    8,022      72,118

Delta Air Lines Inc. (1) (2)

    13,867      71,970

JetBlue Airways Corp. (1) (2)

    10,593      252,219

Northwest Airlines Corp. (1) (2)

    7,019      60,574

SkyWest Inc. (2)

    7,089      100,168

Southwest Airlines Co.

    86,923      1,257,776
         
            2,178,738

APPAREL—2.85%

            

Coach Inc. (1)

    22,944      981,774

Jones Apparel Group Inc.

    15,347      573,210

Kellwood Co.

    3,283      131,812

Liz Claiborne Inc.

    13,525      489,470

Nike Inc. Class B

    22,714      1,651,535

Phillips-Van Heusen Corp. (2)

    3,199      60,685

Polo Ralph Lauren Corp.

    6,494      214,042

Quiksilver Inc. (1)

    6,844      147,557

Reebok International Ltd.

    5,780      196,867

Russell Corp.

    3,594      63,578

Stride Rite Corp.

    4,673      48,599

Timberland Co. Class A (1)

    2,699      156,650

Tommy Hilfiger Corp. (1)

    11,077      155,078

Unifi Inc. (1) (2)

    6,051      17,306

VF Corp.

    10,594      529,806

Wolverine World Wide Inc.

    4,828      112,879
         
            5,530,848

AUTO MANUFACTURERS—2.88%

            

Ford Motor Co.

    214,916      3,163,564

General Motors Corp. (2)

    56,489      2,436,935
         
            5,600,499

AUTO PARTS & EQUIPMENT—2.13%

          

American Axle & Manufacturing Holdings Inc.

    3,808    130,805

ArvinMeritor Inc.

    8,509    169,074

BorgWarner Inc. (2)

    6,818    321,741

Cooper Tire & Rubber Co.

    8,981    210,604

Dana Corp.

    18,107    349,284

Delphi Corp.

    60,634    576,629

Goodyear Tire & Rubber Co. (The) (1) (2)

    21,215    232,304

Johnson Controls Inc.

    23,185    1,308,793

Lear Corp.

    8,393    462,706

Modine Manufacturing Co. (2)

    3,810    113,005

Superior Industries International Inc. (2)

    2,450    80,090

Tower Automotive Inc. (1) (2)

    5,888    18,547

Visteon Corp.

    15,053    154,745
         
          4,128,327

COMMERCIAL SERVICES—0.79%

          

ARAMARK Corp. Class B

    7,393    198,280

Interactive Data Corp. (1)

    4,244    74,312

McKesson Corp.

    33,566    1,079,818

Valassis Communications Inc. (1)

    6,296    184,095
         
          1,536,505

COMPUTERS—0.08%

          

FactSet Research Systems Inc. (2)

    2,554    110,205

Lexar Media Inc. (1) (2)

    8,996    48,488
         
          158,693

DISTRIBUTION & WHOLESALE—0.67%

          

Fastenal Co. (2)

    8,079    503,968

Genuine Parts Co.

    21,291    803,309
         
          1,307,277

ELECTRONICS—0.17%

          

Gentex Corp. (2)

    9,386    336,019
         
          336,019

ENTERTAINMENT—1.18%

          

Alliance Gaming Corp. (1)

    5,594    79,603

GTECH Holdings Corp.

    7,290    308,877

International Game Technology Inc.

    42,573    1,376,811

International Speedway Corp. Class A

    3,231    168,141

Metro-Goldwyn-Mayer Inc. (2)

    9,390    113,901

Pinnacle Entertainment Inc. (1)

    4,392    49,586

Scientific Games Corp. Class A (1)

    7,826    139,381

Six Flags Inc. (1)

    11,456    54,072
         
          2,290,372

HEALTH CARE-PRODUCTS—0.25%

          

Henry Schein Inc. (1)

    5,413    363,212

Oakley Inc. (2)

    3,356    36,245

PSS World Medical Inc. (1) (2)

    8,086    79,162
         
          478,619

HOME BUILDERS—2.52%

          

Beazer Homes USA Inc. (2)

    1,671    156,071

Centex Corp.

    15,029    637,530

Champion Enterprises Inc. (1) (2)

    8,391    81,644

D.R. Horton Inc.

    25,014    691,137

 

Fleetwood Enterprises Inc. (1) (2)

    4,940    66,394

Hovnanian Enterprises Inc. Class A (1)

    4,217    130,854

KB Home

    4,548    291,299

Lennar Corp. Class A (2)

    15,036    641,736

Lennar Corp. Class B

    1,326    52,629

M.D.C. Holdings Inc.

    2,889    193,996

NVR Inc. (1)

    656    305,696

Pulte Homes Inc.

    12,786    698,499

Ryland Group Inc.

    2,916    225,757

Standard-Pacific Corp.

    3,802    176,451

Thor Industries Inc. (2)

    4,769    149,317

Toll Brothers Inc. (1) (2)

    5,843    232,201

Winnebago Industries Inc.

    4,113    151,564
         
          4,882,775

HOME FURNISHINGS—1.23%

          

Ethan Allen Interiors Inc.

    4,552    169,107

Furniture Brands International Inc. (2)

    6,427    147,692

Harman International Industries Inc.

    8,042    689,441

La-Z-Boy Inc. (2)

    6,433    111,162

Leggett & Platt Inc.

    23,488    635,350

Maytag Corp.

    9,064    185,812

Whirlpool Corp.

    7,240    452,066
         
          2,390,630

HOUSEHOLD PRODUCTS & WARES—0.15%

          

American Greetings Corp. Class A (1)

    7,839    182,805

Fossil Inc. (1)

    4,685    113,330
         
          296,135

INTERNET—0.79%

          

Amazon.com Inc. (1)

    35,814    1,393,881

DoubleClick Inc. (1)

    15,707    81,205

NetFlix Inc. (1) (2)

    3,166    64,903
         
          1,539,989

LEISURE TIME—3.01%

          

Bally Total Fitness Holding Corp. (1) (2)

    4,098    21,146

Brunswick Corp.

    10,944    427,144

Callaway Golf Co. (2)

    7,873    86,603

Carnival Corp.

    47,106    2,195,611

Harley-Davidson Inc.

    36,048    2,158,194

Multimedia Games Inc. (1)

    3,237    61,276

Nautilus Group Inc. (The) (2)

    3,651    67,617

Polaris Industries Inc. (2)

    5,225    249,755

Royal Caribbean Cruises Ltd. (2)

    12,121    518,173

WMS Industries Inc. (1) (2)

    2,484    67,664
         
          5,853,183

LODGING—2.95%

          

Aztar Corp. (1)

    4,297    104,288

Caesars Entertainment Inc. (1)

    32,652    480,964

Harrah’s Entertainment Inc.

    13,744    638,959

Hilton Hotels Corp.

    46,843    835,211

La Quinta Corp. (1)

    20,973    160,653

Mandalay Resort Group

    7,341    495,518

Marriott International Inc. Class A

    22,142    1,080,530

MGM Mirage (1)

    7,398    326,622

Prime Hospitality Corp. (1)

    5,181    47,562

Starwood Hotels & Resorts Worldwide Inc.

    25,247    1,136,115

Station Casinos Inc.

    4,180    180,576

Wynn Resorts Ltd. (1)

    6,997    250,353
         
          5,737,351

MANUFACTURING—0.48%

          

Eastman Kodak Co. (2)

    34,922    925,084
         
          925,084

MEDIA—26.14%

          

Belo (A.H.) Corp.

    12,215    285,587

Cablevision Systems Corp. (1)

    22,985    401,548

Charter Communications Inc. Class A (1) (2)

    32,093    99,167

Clear Channel Communications Inc.

    68,329    2,439,345

Comcast Corp. Class A (1)

    153,570    4,207,818

Comcast Corp. Special Class A (1) (2)

    108,015    2,894,802

Cox Communications Inc. Class A (1)

    24,473    674,965

Cox Radio Inc. Class A (1) (2)

    4,579    79,354

Cumulus Media Inc. Class A (1)

    6,432    94,422

DIRECTV Group Inc. (The) (1)

    78,259    1,268,578

Dow Jones & Co. Inc.

    5,474    231,988

EchoStar Communications Corp. (1)

    28,828    799,112

Emmis Communications Corp. (1)

    6,308    124,394

Entercom Communications Corp. (1)

    5,024    193,173

Fox Entertainment Group Inc. Class A (1)

    21,380    577,901

Gannett Co. Inc.

    33,274    2,766,400

Gemstar-TV Guide International Inc. (1)

    27,435    127,298

Hearst-Argyle Television Inc.

    3,295    74,566

Hollinger International Inc.

    5,547    91,803

Insight Communications Co. Inc. (1) (2)

    5,471    48,145

Knight Ridder Inc.

    9,605    631,913

Lee Enterprises Inc. (2)

    4,410    205,286

Liberty Media Corp. Class A

    314,633    2,668,088

Liberty Media International Inc. Class A (1)

    16,500    514,470

Liberty Media International Inc. Class A Rights (1) (2)

    —      1

McClatchy Co. (The) Class A (2)

    2,481    171,065

McGraw-Hill Companies Inc. (The)

    23,245    1,744,770

Media General Inc. Class A

    2,561    153,045

Meredith Corp.

    4,989    263,818

New York Times Co. Class A

    18,023    749,757

Radio One Inc. Class D (1) (2)

    8,054    122,501

Readers Digest Association Inc. (The)

    10,668    152,339

Scholastic Corp. (1)

    4,141    113,919

Scripps (E.W.) Co. Class A

    4,933    505,238

Sinclair Broadcast Group Inc. Class A

    5,723    56,715

Sirius Satellite Radio Inc. (1) (2)

    150,335    380,348

Time Warner Inc. (1)

    535,692    8,919,272

Tribune Co.

    26,523    1,125,901

UnitedGlobalCom Inc. Class A (1)

    44,684    283,297

Univision Communications Inc. Class A (1)

    28,919    837,783

Viacom Inc. Class A

    4,676    159,218

Viacom Inc. Class B

    182,687    6,136,456

Walt Disney Co. (The)

    250,487    5,783,745

Washington Post Co. (The) Class B

    745    646,586

Westwood One Inc. (1)

    9,344    222,387

Wiley, John & Sons Inc. Class A

    4,886    158,111

XM Satellite Radio Holdings Inc. Class A (1) (2)

    21,469    566,567

Young Broadcasting Inc. Class A (1) (2)

    2,096    22,406
         
          50,775,368

MINING—0.06%

          

Owens & Minor Inc. (2)

    4,763    122,266
         
          122,266

OFFICE FURNISHINGS—0.30%

          

Herman Miller Inc.

    8,713    233,508

HNI Corp.

    5,752    232,668

Interface Inc. Class A (1)

    5,699    47,416

Steelcase Inc. Class A (2)

    5,675    74,059
         
          587,651

PHARMACEUTICALS—1.64%

          

AmerisourceBergen Corp.

    13,678    739,433

Cardinal Health Inc.

    52,572    2,339,454

Priority Healthcare Corp. Class B (1) (2)

    4,473    100,195
         
          3,179,082

RETAIL—44.27%

          

Abercrombie & Fitch Co. Class A

    11,503    424,231

Advance Auto Parts Inc. (1)

    9,010    334,451

Aeropostale Inc. (1)

    6,775    206,502

American Eagle Outfitters Inc. (1)

    6,404    209,859

AnnTaylor Stores Corp. (1)

    8,494    227,979

Applebee’s International Inc. (2)

    10,050    267,732

AutoNation Inc. (1)

    23,922    385,623

AutoZone Inc. (1)

    7,969    615,207

Barnes & Noble Inc. (1)

    6,806    233,990

Bed Bath & Beyond Inc. (1)

    36,659    1,297,362

Best Buy Co. Inc.

    32,257    1,553,497

Big Lots Inc. (1) (2)

    14,236    174,249

BJ’s Wholesale Club Inc. (1) (2)

    8,539    199,044

Bob Evans Farms Inc. (2)

    4,378    116,542

Borders Group Inc.

    9,396    214,887

Brinker International Inc. (1)

    11,748    420,696

CarMax Inc. (1) (2)

    12,794    266,115

Cato Corp. Class A

    2,552    53,260

CBRL Group Inc.

    5,990    198,988

CEC Entertainment Inc. (1)

    4,503    163,684

Charming Shoppes Inc. (1)

    14,302    104,977

Cheesecake Factory (The) (1)

    5,940    248,114

Chico’s FAS Inc. (1) (2)

    10,883    455,671

Children’s Place Retail Stores Inc. (The) (1)

    1,764    36,162

Christopher & Banks Corp. (2)

    4,599    75,286

Circuit City Stores Inc.

    21,995    310,130

Claire’s Stores Inc.

    10,198    235,064

Cost Plus Inc. (1)

    2,629    87,966

Costco Wholesale Corp.

    56,037    2,278,464

CVS Corp.

    48,494    2,030,444

Darden Restaurants Inc.

    17,946    382,788

Dillard’s Inc. Class A (2)

    8,511    193,966

Dollar General Corp.

    36,406    702,636

Dollar Tree Stores Inc. (1) (2)

    13,816    371,789

Dress Barn Inc. (1)

    2,508    42,009

Duane Reade Inc. (1)

    3,125    51,469

Family Dollar Stores Inc.

    19,707    549,037

Federated Department Stores Inc.

    22,025    1,055,438

Foot Locker Inc.

    17,649    397,103

Fred’s Inc. (2)

    4,140    74,727

Gap Inc. (The)

    80,102    1,818,315

Genesco Inc. (1) (2)

    2,748    58,972

Guitar Center Inc. (1)

    2,707    121,680

 

Hollywood Entertainment Corp. (1) (2)

    7,039    90,873

Home Depot Inc.

    273,748    9,230,783

Hot Topic Inc. (1) (2)

    5,788    92,145

IHOP Corp. (2)

    2,608    96,470

Jack in the Box Inc. (1)

    4,446    141,827

Kenneth Cole Productions Inc. Class A

    1,229    39,439

Kmart Holding Corp. (1) (2)

    4,605    356,565

Kohl’s Corp. (1)

    37,035    1,694,722

Krispy Kreme Doughnuts Inc. (1) (2)

    6,928    109,047

Limited Brands Inc.

    49,098    1,003,563

Linens ‘n Things Inc. (1)

    5,486    146,037

Lone Star Steakhouse & Saloon Inc.

    2,379    57,667

Longs Drug Stores Corp. (2)

    3,569    74,949

Lowe’s Companies Inc.

    86,714    4,224,706

May Department Stores Co. (The)

    35,547    943,062

McDonald’s Corp.

    153,840    4,230,600

Men’s Wearhouse Inc. (The) (1) (2)

    3,996    105,854

Michaels Stores Inc.

    8,336    450,394

Neiman-Marcus Group Inc. Class A (2)

    3,621    197,526

99 Cents Only Stores (1) (2)

    6,186    88,645

Nordstrom Inc.

    12,712    558,057

Office Depot Inc. (1)

    38,306    628,218

O’Reilly Automotive Inc. (1) (2)

    6,724    272,255

Outback Steakhouse Inc. (2)

    8,183    332,312

P.F. Chang’s China Bistro Inc. (1) (2)

    2,925    129,958

Pacific Sunwear of California Inc. (1)

    9,268    189,067

Panera Bread Co. Class A (1) (2)

    3,554    131,107

Papa John’s International Inc. (1) (2)

    1,604    48,713

Payless ShoeSource Inc. (1) (2)

    8,402    108,722

Penney (J.C.) Co. Inc. (Holding Co.)

    33,964    1,358,560

Pep Boys-Manny, Moe & Jack Inc. (2)

    6,966    144,196

PETCO Animal Supplies Inc. (1)

    5,031    150,276

PETsMART Inc.

    17,575    545,001

Pier 1 Imports Inc.

    10,668    191,277

RadioShack Corp.

    19,620    548,379

Rite Aid Corp. (1)

    54,008    265,179

Ross Stores Inc.

    18,422    426,469

Ruby Tuesday Inc.

    8,059    232,825

Ryan’s Restaurant Group Inc. (1)

    5,240    75,928

Saks Inc. (2)

    15,332    200,083

Sears, Roebuck and Co.

    24,093    883,731

ShopKo Stores Inc. (1) (2)

    3,640    56,602

Sonic Corp. (1) (2)

    7,346    168,958

Sports Authority Inc. (The) (1)

    2,794    71,247

Staples Inc.

    60,711    1,753,334

Starbucks Corp. (1)

    48,422    2,273,897

Stein Mart Inc. (1)

    3,359    60,932

Talbots Inc. (The)

    2,910    89,628

Target Corp.

    101,079    4,407,044

Tiffany & Co.

    17,889    639,532

TJX Companies Inc.

    60,653    1,423,526

Toys R Us Inc. (1)

    26,198    431,219

Tractor Supply Co. (1)

    4,235    153,561

Triarc Companies Inc. Class B (2)

    2,232    21,784

Tuesday Morning Corp. (1)

    3,200    102,912

Urban Outfitters Inc. (1) (2)

    7,091    210,886

Walgreen Co.

    125,129    4,554,696

Wal-Mart Stores Inc.

    323,455    17,146,350

Wendy’s International Inc.

    13,239    473,559

Williams-Sonoma Inc. (1)

    11,466    372,530

Yum! Brands Inc.

    35,334    1,356,472

Zale Corp. (1)

    6,431    174,537
         
          85,984,498

SOFTWARE—1.40%

          

Activision Inc. (1)

    16,487    241,535

Avid Technology Inc. (1) (2)

    3,898    182,193

Electronic Arts Inc. (1)

    36,471    1,828,291

Pixar Inc. (1) (2)

    3,053    208,337

Take-Two Interactive Software Inc. (1) (2)

    5,470    171,320

THQ Inc. (1) (2)

    4,744    90,373
         
          2,722,049

TELECOMMUNICATIONS—0.25%

          

NTL Inc. (1)

    9,281    483,726
         
          483,726

TEXTILES—0.25%

          

Mohawk Industries Inc. (1)

    6,557    482,202
         
          482,202

TOYS, GAMES & HOBBIES—0.75%

          

Hasbro Inc.

    19,406    352,607

Jakks Pacific Inc. (1) (2)

    2,996    60,130

Marvel Enterprises Inc. (1)

    9,958    129,952

Mattel Inc.

    51,552    903,191
         
          1,445,880

TOTAL COMMON STOCKS
(Cost: $214,696,534)

         194,267,047
         

Security

    Shares or Principal
    Value

SHORT-TERM INVESTMENTS—7.58%

          

MONEY MARKET FUNDS—1.91%

          

Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares (3) (5)

    2,309,767    2,309,767

Barclays Global Investors Funds Prime Money Market Fund, Institutional Shares (3) (5)

    1,239,989    1,239,989

BlackRock Temp Cash Money Market Fund (3)

    56,906    56,906

Short-Term Investment Co. - Prime Money Market Portfolio (3)

    96,985    96,985
         
          3,703,647

FLOATING RATE NOTES—1.83%

          

Beta Finance Inc.

          

1.30%, 05/04/05 (3) (4)

    67,636    67,626

1.31%, 10/12/04 (3) (4)

    56,363    56,362

1.34%, 09/15/04 (3) (4)

    112,726    112,725

1.42%, 03/15/05 (3) (4)

    56,363    56,391

1.48%, 08/23/04 (3) (4)

    56,363    56,366

Canadian Imperial Bank of Commerce

          

1.24%, 10/07/04 (3)

    84,545    84,542

1.38%, 11/22/04 (3)

    28,182    28,182

1.40%, 10/29/04 (3)

    112,726    112,726

CC USA Inc.

          

1.30%, 05/04/05 (3) (4)

    112,726    112,709

1.61%, 07/29/05 (3) (4)

    112,726    112,693

Depfa Bank PLC

          

1.27%, 06/15/05 (3)

    112,726    112,726

Dorada Finance Inc.

          

1.61%, 07/29/05 (3) (4)

    93,563    93,535

Five Finance Inc.

          

1.42%, 04/29/05 (3) (4)

    90,181    90,174

HBOS Treasury Services PLC

          

1.24%, 04/01/05 (3)

    72,145    72,141

1.58%, 04/22/05 (3)

    112,726    112,726

K2 USA LLC

          

1.34%, 08/16/04 (3) (4)

    28,182    28,182

1.41%, 09/27/04 (3) (4)

    121,744    121,742

1.49%, 06/10/05 (3) (4)

    112,726    112,714

1.61%, 07/25/05 (3) (4)

    56,363    56,352

Links Finance LLC

          

1.33%, 04/15/05 (3)

    112,726    112,710

1.68%, 04/25/05 (3)

    112,726    112,780

Nationwide Building Society

          

1.59%, 07/28/05 (3) (4)

    112,726    112,726

1.63%, 12/09/04 (3)

    93,563    93,017

Northern Rock PLC

          

1.56%, 01/13/05 (3) (4)

    107,090    107,090

Permanent Financing PLC

          

1.31%, 03/10/05 (3)

    112,726    112,726

1.32%, 12/10/04 (3)

    56,363    56,363

1.34%, 06/10/05 (3)

    50,727    50,727

Sigma Finance Inc.

          

1.35%, 11/15/04 (3)

    112,726    112,724

1.52%, 10/07/04 (3)

    112,726    112,722

Tango Finance Corp.

          

1.20%, 05/17/05 (3) (4)

    93,563    93,559

1.23%, 02/25/05 (3) (4)

    63,127    63,120

1.32%, 04/07/05 (3) (4)

    41,371    41,368

1.34%, 01/18/05 (3) (4)

    49,600    49,597

1.42%, 07/25/05 (3) (4)

    112,726    112,715

WhistleJacket Capital LLC

          

1.26%, 10/20/04 (3) (4)

    27,922    27,845

1.34%, 09/15/04 (3) (4)

    56,363    56,362

1.38%, 07/15/05 (3) (4)

    84,545    84,528

1.48%, 06/15/05 (3) (4)

    56,363    56,352

White Pine Finance LLC

          

1.21%, 05/20/05 (3) (4)

    50,727    50,723

1.33%, 04/15/05 (3) (4)

    84,545    84,533

1.33%, 07/05/05 (3) (4)

    56,363    56,352

1.34%, 11/15/04 (3) (4)

    67,636    67,636

1.35%, 06/15/05 (3) (4)

    46,218    46,218

1.40%, 08/26/04 (3) (4)

    56,363    56,363

1.55%, 07/11/05 (3) (4)

    28,182    28,179
         
          3,559,649

COMMERCIAL PAPER—1.38%

          

Alpine Securitization Corp.

          

1.31%, 08/12/04 (3)

    56,363    56,343

Amsterdam Funding Corp.

          

1.30%, 08/13/04 (3)

    84,545    84,512

1.33%, 08/16/04 (3)

    112,726    112,668

1.35%, 08/20/04 (3)

    33,818    33,795

1.37%, 08/24/04 (3)

    39,454    39,421

Barton Capital Corp.

          

1.29%, 08/10/04 (3)

    56,363    56,347

1.30%, 08/13/04 (3)

    46,333    46,314

1.35%, 08/18/04 (3)

    28,182    28,165

Blue Ridge Asset Funding Corp.

          

1.29%, 08/06/04 (3)

    56,363    56,355

Corporate Asset Funding

          

1.42%, 09/03/04 (3)

    33,818    33,775

CRC Funding LLC

          

1.42%, 09/03/04 (3)

    56,363    56,292

Edison Asset Securitization

          

1.07%, 09/21/04 (3)

    56,363    56,279

1.45%, 11/09/04 (3)

    112,726    112,277

1.59%, 12/02/04 (3)

    112,726    112,119

Falcon Asset Securitization Corp.

          

1.29%, 08/09/04 (3)

    107,090    107,063

1.30%, 08/03/04 (3)

    56,363    56,361

1.34%, 08/19/04 (3)

    56,363    56,327

1.37%, 08/24/04 (3)

    45,090    45,053

Ford Credit Auto Receivables

          

1.85%, 01/14/05 (3)

    56,363    55,885

GIRO Funding US Corp.

          

1.55%, 10/15/04 (3)

    73,920    73,685

Grampian Funding LLC

          

1.26%, 10/22/04 (3)

    112,726    112,408

1.44%, 10/27/04 (3)

    112,726    112,338

1.59%, 11/30/04 (3)

    56,363    56,064

Jupiter Securitization Corp.

          

1.30%, 08/12/04 (3)

    56,363    56,343

1.37%, 08/20/04 (3)

    75,415    75,363

Park Avenue Receivables Corp.

          

1.35%, 08/19/04 (3)

    56,363    56,327

Preferred Receivables Funding Corp.

          

1.29%, 08/05/04 (3)

    52,066    52,060

1.36%, 08/23/04 (3)

    56,363    56,319

Receivables Capital Corp.

          

1.30%, 08/12/04 (3)

    39,454    39,440

1.34%, 08/16/04 (3)

    6,741    6,738

1.35%, 08/18/04 (3)

    50,727    50,696

1.35%, 08/19/04 (3)

    19,163    19,151

Scaldis Capital LLC

          

1.34%, 08/16/04 (3)

    112,726    112,668

1.37%, 08/20/04 (3)

    16,909    16,897

1.40%, 08/25/04 (3)

    140,908    140,782

Sydney Capital Corp.

          

1.25%, 10/22/04 (3)

    37,515    37,410

1.31%, 08/12/04 (3)

    45,090    45,074

Thames Asset Global Securitization No. 1 Inc.

          

1.30%, 08/12/04 (3)

    59,490    59,469

1.34%, 08/16/04 (3)

    31,563    31,547

1.36%, 08/20/04 (3)

    84,545    84,487

1.37%, 08/19/04 (3)

    31,488    31,467

1.37%, 08/20/04 (3)

    14,654    14,644

Windmill Funding Corp.

          

1.29%, 08/06/04 (3)

    140,908    140,888
         
          2,687,616

TIME DEPOSITS—1.21%

          

Abbey National Treasury Services PLC

          

1.25%, 01/06/05 (3)

    112,722    112,722

1.33%, 02/10/05 (3)

    56,363    56,359

1.39%, 02/02/05 (3)

    56,363    56,359

1.39%, 04/08/05 (3)

    78,908    78,900

1.40%, 10/25/04 (3)

    112,726    112,722

Bank of New York

          

1.39%, 11/01/04 (3)

    112,726    112,723

1.60%, 12/03/04 (3)

    28,182    28,177

Bank of Nova Scotia

          

1.13%, 10/06/04 (3)

    112,726    112,726

1.24%, 10/07/04 (3)

    84,545    84,543

1.42%, 10/29/04 (3)

    84,545    84,546

National City Bank (Cleveland, Ohio)

          

1.25%, 01/06/05 (3)

    112,726    112,729

1.35%, 06/10/05 (3)

    56,363    56,378

1.36%, 06/23/05 (3)

    112,726    112,696

Norddeutsche Landesbank

          

1.59%, 07/27/05 (3)

    112,726    112,687

Nordea Bank PLC

          

2.11%, 06/07/05 (3)

    112,726    112,708

Prudential Funding LLC

          

1.60%, 12/01/04 (3)

    56,363    56,060

Toronto-Dominion Bank

          

1.22%, 03/23/05 (3)

    197,271    197,249

1.34%, 02/10/05 (3)

    45,090    45,087

1.41%, 11/01/04 (3)

    84,545    84,543

1.77%, 05/10/05 (3)

    56,363    56,359

1.90%, 05/11/05 (3)

    56,363    56,359

UBS Finance (Delaware)

          

1.10%, 09/08/04 (3)

    112,726    112,599

1.11%, 12/17/04 (3)

    169,089    168,376

1.13%, 08/09/04 (3)

    112,726    112,701

1.14%, 09/29/04 (3)

    112,726    112,520
         
          2,348,828

REPURCHASE AGREEMENTS—0.73%

          

Banc of America Securities LLC

          

1.34%, 08/02/04 (3) (6)

    293,088    293,088

Bank of America, N.A.

          

1.37%, 08/02/04 (3) (6)

    563,631    563,631

Goldman Sachs & Co.

          

1.37%, 08/02/04 (3) (6)

    563,631    563,631
         
          1,420,350

U.S. GOVERNMENT AGENCY NOTES—0.31%

          

Federal Home Loan Mortgage Corp.

          

1.28%, 08/19/04 (3)

    45,090    45,063

1.63%, 04/15/05 (3)

    78,908    79,085

1.80%, 01/18/05 (3)

    52,418    51,975

1.80%, 01/19/05 (3)

    56,363    55,884

2.06%, 05/31/05 (3)

    56,197    55,226

Federal National Mortgage Association

          

1.28%, 08/20/04 (3)

    146,544    146,450

2.33%, 07/22/05 (3)

    169,089    165,224
         
          598,907

MEDIUM-TERM NOTES—0.21%

              

CC USA Inc.

              

1.29%, 04/15/05 (3) (4)

    112,726      112,718  

1.51%, 02/15/05 (3) (4)

    73,272      73,334  

Dorada Finance Inc.

              

1.24%, 08/09/04 (3) (4)

    28,182      28,181  

1.48%, 01/18/05 (3) (4)

    84,545      84,543  

K2 USA LLC

              

1.46%, 01/12/05 (3) (4)

    56,363      56,361  

Sigma Finance Inc.

              

1.24%, 08/06/04 (3)

    28,182      28,182  

WhistleJacket Capital LLC

              

1.32%, 02/04/05 (3) (4)

    28,182      28,179  
         
            411,498  

TOTAL SHORT-TERM INVESTMENTS
(Cost: $14,730,495)

           14,730,495  
         

TOTAL INVESTMENTS IN SECURITIES — 107.60%
(Cost: $229,427,029) (7)

           208,997,542  

Other Assets, Less Liabilities — (7.60%)

           (14,764,910 )
         

NET ASSETS — 100.00%

         $ 194,232,632  
         
(1) Non-income earning security.
(2) All or a portion of this security represents a security on loan.
(3) All or a portion of this security represents an investment of securities lending collateral.
(4) Security exempt from registration pursuant to Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.
(5) Issuer is an affiliate of the Fund’s investment adviser.
(6) Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 3.61% to 7.00% and maturity dates ranging from 7/1/13 to 7/1/34.
(7) The cost of investments for federal income tax purposes was $230,686,437. Net unrealized depreciation aggregated $21,688,895, of which $5,675,467 represented gross unrealized appreciation on securities and $27,364,362 represented gross unrealized depreciation on securities.

Schedule of Investments (Unaudited)

iSHARES® DOW JONES U.S. CONSUMER NON-CYCLICAL SECTOR INDEX FUND

July 31, 2004

 

Security

    Shares
    Value

COMMON STOCKS—99.91%

            

AGRICULTURE—11.78%

            

Altria Group Inc.

    691,591    $ 32,919,732

Bunge Ltd. (1)

    36,684      1,472,129

Loews Corp - Carolina Group

    17,976      427,110

R.J. Reynolds Tobacco Holdings Inc. (1)

    28,726      2,066,836

Universal Corp. (1)

    8,455      407,785

UST Inc.

    55,845      2,119,318
         
            39,412,910

BEVERAGES—24.58%

            

Anheuser-Busch Companies Inc.

    271,219      14,076,266

Brown-Forman Corp. Class B

    13,444      625,280

Coca-Cola Co. (The)

    755,262      33,125,791

Coca-Cola Enterprises Inc.

    83,556      1,704,542

Constellation Brands Inc. (1) (2)

    31,982      1,211,478

Coors (Adolph) Co. Class B

    8,925      613,683

Pepsi Bottling Group Inc.

    53,759      1,497,188

PepsiAmericas Inc. (1)

    25,487      478,391

PepsiCo Inc.

    575,663      28,783,150

Robert Mondavi Corp. (The) Class A (1) (2)

    3,572      123,913
         
            82,239,682

COMMERCIAL SERVICES—7.00%

            

Apollo Group Inc. Class A (2)

    47,858      3,998,536

Block (H & R) Inc.

    53,988      2,652,430

Career Education Corp. (2)

    32,336      1,093,280

Cendant Corp.

    343,997      7,870,651

Chemed Corp.

    3,510      164,268

Corinthian Colleges Inc. (2)

    30,414      569,350

DeVry Inc. (1) (2)

    20,677      480,740

Education Management Corp. (2)

    20,163      559,725

ITT Educational Services Inc. (1) (2)

    15,372      489,598

Laureate Education Inc. (1) (2)

    14,098      497,659

Pre-Paid Legal Services Inc. (1) (2)

    5,158      119,408

Rent-A-Center Inc. (2)

    27,048      793,588

Service Corp. International (2)

    102,846      653,072

ServiceMaster Co. (The)

    98,033      1,145,025

Sotheby’s Holdings Inc. Class A (2)

    15,160      242,257

Stewart Enterprises Inc. Class A (2)

    30,710      213,742

Strayer Education Inc.

    4,700      457,874

United Rentals Inc. (1) (2)

    22,022      436,917

University of Phoenix Online (2)

    5,096      439,122

Weight Watchers International Inc. (1) (2)

    14,072      545,149
         
            23,422,391

COSMETICS & PERSONAL CARE—25.93%

            

Alberto-Culver Co.

    23,400      1,090,908

Avon Products Inc.

    159,528    6,861,299

Colgate-Palmolive Co.

    166,726    8,869,823

Estee Lauder Companies Inc. Class A

    37,546    1,648,269

Gillette Co. (The)

    307,615    11,990,833

Kimberly-Clark Corp.

    169,071    10,832,379

Procter & Gamble Co.

    871,668    45,457,486
         
          86,750,997

ELECTRICAL COMPONENTS & EQUIPMENT—0.31%

          

Energizer Holdings Inc. (1) (2)

    27,677    1,054,494
         
          1,054,494

FOOD—20.26%

          

Albertson’s Inc. (1)

    107,563    2,623,462

American Italian Pasta Co. Class A (1)

    6,107    179,607

Archer-Daniels-Midland Co.

    200,111    3,087,713

Campbell Soup Co.

    85,817    2,196,057

Chiquita Brands International Inc. (1) (2)

    13,692    267,542

ConAgra Foods Inc.

    178,228    4,633,928

Corn Products International Inc. (1)

    11,623    501,184

Dean Foods Co. (2)

    52,931    1,957,388

Del Monte Foods Co. (2)

    67,087    707,097

Dreyer’s Grand Ice Cream Holdings Inc. (1)

    7,611    604,770

Flowers Foods Inc. (1)

    14,816    386,698

General Mills Inc.

    100,449    4,510,160

Hain Celestial Group Inc. (1) (2)

    10,062    166,325

Heinz (H.J.) Co.

    118,760    4,381,056

Hershey Foods Corp.

    58,577    2,837,470

Hormel Foods Corp.

    25,033    742,979

Interstate Bakeries Corp. (1)

    15,202    149,436

Kellogg Co.

    79,923    3,329,592

Kraft Foods Inc. (1)

    89,523    2,734,928

Kroger Co. (2)

    226,829    3,583,898

McCormick & Co. Inc. NVS

    41,274    1,476,371

Performance Food Group Co. (1) (2)

    15,573    385,899

Ralcorp Holdings Inc. (1) (2)

    9,893    360,798

Safeway Inc. (2)

    150,542    3,180,952

Sara Lee Corp.

    266,562    5,853,702

Smithfield Foods Inc. (2)

    29,367    832,261

Smucker (J.M.) Co. (The)

    19,496    815,128

SUPERVALU Inc.

    45,574    1,301,593

Sysco Corp.

    215,654    7,429,280

Tootsie Roll Industries Inc.

    7,525    220,483

Tyson Foods Inc. Class A

    79,520    1,515,651

Whole Foods Market Inc. (1)

    20,829    1,714,643

Wild Oats Markets Inc. (1) (2)

    9,192    115,819

Winn-Dixie Stores Inc. (1)

    28,377    179,343

Wrigley (William Jr.) Co.

    46,482    2,807,513
         
          67,770,726
           

HAND & MACHINE TOOLS—1.08%

          

Black & Decker Corp.

    26,670    1,864,500

Snap-On Inc.

    17,719    568,957

Stanley Works (The)

    27,557    1,168,417
         
          3,601,874

HOUSEHOLD PRODUCTS & WARES—2.51%

          

Blyth Inc. (1)

    11,202    390,054

Church & Dwight Co. Inc. (1)

    13,860    612,335

Clorox Co.

    52,414    2,608,645

Fortune Brands Inc.

    49,330    3,560,639

Scotts Co. (The) Class A (2)

    7,412    452,132

Tupperware Corp. (1)

    17,674    303,463

Yankee Candle Co. Inc. (The) (1) (2)

    16,766    486,549
         
          8,413,817

HOUSEWARES—0.60%

          

Newell Rubbermaid Inc. (1)

    92,604    2,000,246
         
          2,000,246

INTERNET—4.93%

          

eBay Inc. (2)

    148,132    11,603,180

IAC/InterActiveCorp (1) (2)

    170,046    4,642,256

Priceline.com Inc. (1) (2)

    7,110    168,365

Stamps.com Inc.

    6,431    67,397
         
          16,481,198

MANUFACTURING—0.23%

          

Lancaster Colony Corp. (1)

    9,464    381,210

Matthews International Corp. Class A

    10,860    372,281
         
          753,491

PHARMACEUTICALS—0.29%

          

NBTY Inc. (2)

    20,448    444,948

VCA Antech Inc. (1) (2)

    12,581    528,779
         
          973,727

RETAIL—0.41%

          

Casey’s General Store Inc. (1)

    15,907    257,375

Nu Skin Enterprises Inc. Class A (1)

    18,338    500,811

Regis Corp.

    14,953    615,465
         
          1,373,651

TOTAL COMMON STOCKS
(Cost: $338,376,101)

         334,249,204
         

Security

    Shares or Principal
    Value

SHORT-TERM INVESTMENTS—5.84%

          

MONEY MARKET FUNDS—1.48%

          

Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares (3) (5)

    3,124,153    3,124,153

Barclays Global Investors Funds Prime Money Market Fund, Institutional Shares (3) (5)

    1,640,121    1,640,121

BlackRock Temp Cash Money Market Fund (3)

    75,269    75,269

Short-Term Investment Co. - Prime Money Market Portfolio (3)

    128,281    128,281
         
          4,967,824

FLOATING RATE NOTES—1.41%

          

Beta Finance Inc.

          

1.30%, 05/04/05 (3) (4)

    89,461    89,448

1.31%, 10/12/04 (3) (4)

    74,551    74,550

1.34%, 09/15/04 (3) (4)

    149,102    149,100

1.42%, 03/15/05 (3) (4)

    74,551    74,588

1.48%, 08/23/04 (3) (4)

    74,551    74,555

Canadian Imperial Bank of Commerce

          

1.24%, 10/07/04 (3)

    111,826    111,823

1.38%, 11/22/04 (3)

    37,275    37,276

1.40%, 10/29/04 (3)

    149,102    149,101

CC USA Inc.

          

1.30%, 05/04/05 (3) (4)

    149,102    149,079

1.61%, 07/29/05 (3) (4)

    149,102    149,058

Depfa Bank PLC

          

1.27%, 06/15/05 (3)

    149,102    149,102

Dorada Finance Inc.

          

1.61%, 07/29/05 (3) (4)

    123,755    123,718

Five Finance Inc.

          

1.42%, 04/29/05 (3) (4)

    119,282    119,273

HBOS Treasury Services PLC

          

1.24%, 04/01/05 (3)

    95,425    95,419

1.58%, 04/22/05 (3)

    149,102    149,102

K2 USA LLC

          

1.34%, 08/16/04 (3) (4)

    37,275    37,275

1.41%, 09/27/04 (3) (4)

    161,030    161,026

1.49%, 06/10/05 (3) (4)

    149,102    149,086

1.61%, 07/25/05 (3) (4)

    74,551    74,536

Links Finance LLC

          

1.33%, 04/15/05 (3)

    149,102    149,081

1.68%, 04/25/05 (3)

    149,102    149,173

Nationwide Building Society

          

1.59%, 07/28/05 (3) (4)

    149,102    149,102

1.63%, 12/09/04 (3)

    123,755    123,032

Northern Rock PLC

          

1.56%, 01/13/05 (3) (4)

    141,647    141,647

Permanent Financing PLC

          

1.31%, 03/10/05 (3)

    149,102    149,102

1.32%, 12/10/04 (3)

    74,551    74,551

1.34%, 06/10/05 (3)

    67,096    67,096

Sigma Finance Inc.

          

1.35%, 11/15/04 (3)

    149,102    149,099

1.52%, 10/07/04 (3)

    149,102    149,097

Tango Finance Corp.

          

1.20%, 05/17/05 (3) (4)

    123,755    123,750

1.23%, 02/25/05 (3) (4)

    83,497    83,488

1.32%, 04/07/05 (3) (4)

    54,720    54,717

1.34%, 01/18/05 (3) (4)

    65,605    65,602

1.42%, 07/25/05 (3) (4)

    149,102    149,087

WhistleJacket Capital LLC

          

1.26%, 10/20/04 (3) (4)

    36,933    36,830

1.34%, 09/15/04 (3) (4)

    74,551    74,549

1.38%, 07/15/05 (3) (4)

    111,826    111,805

1.48%, 06/15/05 (3) (4)

    74,551    74,536

White Pine Finance LLC

          

1.21%, 05/20/05 (3) (4)

    67,096    67,090

1.33%, 04/15/05 (3) (4)

    111,826    111,811

1.33%, 07/05/05 (3) (4)

    74,551    74,536

1.34%, 11/15/04 (3) (4)

    89,461    89,461

1.35%, 06/15/05 (3) (4)

    61,132    61,132

1.40%, 08/26/04 (3) (4)

    74,551    74,550

1.55%, 07/11/05 (3) (4)

    37,275    37,272
         
          4,708,311

COMMERCIAL PAPER—1.06%

          

Alpine Securitization Corp.

          

1.31%, 08/12/04 (3)

    74,551    74,524

Amsterdam Funding Corp.

          

1.30%, 08/13/04 (3)

    111,826    111,782

1.33%, 08/16/04 (3)

    149,102    149,025

1.35%, 08/20/04 (3)

    44,731    44,700

1.37%, 08/24/04 (3)

    52,186    52,142

Barton Capital Corp.

          

1.29%, 08/10/04 (3)

    74,551    74,530

1.30%, 08/13/04 (3)

    61,284    61,260

1.35%, 08/18/04 (3)

    37,275    37,254

Blue Ridge Asset Funding Corp.

          

1.29%, 08/06/04 (3)

    74,551    74,540

Corporate Asset Funding

          

1.42%, 09/03/04 (3)

    44,731    44,674

CRC Funding LLC

          

1.42%, 09/03/04 (3)

    74,551    74,457

Edison Asset Securitization

          

1.07%, 09/21/04 (3)

    74,551    74,440

1.45%, 11/09/04 (3)

    149,102    148,507

1.59%, 12/02/04 (3)

    149,102    148,298

Falcon Asset Securitization Corp.

          

1.29%, 08/09/04 (3)

    141,647    141,611

1.30%, 08/03/04 (3)

    74,551    74,548

1.34%, 08/19/04 (3)

    74,551    74,504

1.37%, 08/24/04 (3)

    59,641    59,591

Ford Credit Auto Receivables

          

1.85%, 01/14/05 (3)

    74,551    73,919

GIRO Funding US Corp.

          

1.55%, 10/15/04 (3)

    97,774    97,462

Grampian Funding LLC

          

1.26%, 10/22/04 (3)

    149,102    148,681

1.44%, 10/27/04 (3)

    149,102    148,589

1.59%, 11/30/04 (3)

    74,551    74,156

Jupiter Securitization Corp.

          

1.30%, 08/12/04 (3)

    74,551    74,524

1.37%, 08/20/04 (3)

    99,751    99,682

Park Avenue Receivables Corp.

          

1.35%, 08/19/04 (3)

    74,551    74,503

Preferred Receivables Funding Corp.

          

1.29%, 08/05/04 (3)

    68,867    68,860

1.36%, 08/23/04 (3)

    74,551    74,492

Receivables Capital Corp.

          

1.30%, 08/12/04 (3)

    52,186    52,167

1.34%, 08/16/04 (3)

    8,916    8,912

1.35%, 08/18/04 (3)

    67,096    67,056

1.35%, 08/19/04 (3)

    25,347    25,331

Scaldis Capital LLC

          

1.34%, 08/16/04 (3)

    149,102    149,024

1.37%, 08/20/04 (3)

    22,365    22,350

1.40%, 08/25/04 (3)

    186,377    186,211

Sydney Capital Corp.

          

1.25%, 10/22/04 (3)

    49,621    49,482

1.31%, 08/12/04 (3)

    59,641    59,619

Thames Asset Global Securitization No. 1 Inc.

          

1.30%, 08/12/04 (3)

    78,687    78,659

1.34%, 08/16/04 (3)

    41,749    41,727

1.36%, 08/20/04 (3)

    111,826    111,750

1.37%, 08/19/04 (3)

    41,649    41,622

1.37%, 08/20/04 (3)

    19,383    19,370

Windmill Funding Corp.

          

1.29%, 08/06/04 (3)

    186,377    186,351
         
          3,554,886

TIME DEPOSITS—0.93%

          

Abbey National Treasury Services PLC

          

1.25%, 01/06/05 (3)

    149,102    149,102

1.33%, 02/10/05 (3)

    74,551    74,545

1.39%, 02/02/05 (3)

    74,551    74,546

1.39%, 04/08/05 (3)

    104,371    104,361

1.40%, 10/25/04 (3)

    149,102    149,090

Bank of New York

          

1.39%, 11/01/04 (3)

    149,102    149,098

1.60%, 12/03/04 (3)

    37,275    37,270

Bank of Nova Scotia

          

1.13%, 10/06/04 (3)

    149,102    149,102

1.24%, 10/07/04 (3)

    111,826    111,824

1.42%, 10/29/04 (3)

    111,826    111,828

National City Bank (Cleveland, Ohio)

          

1.25%, 01/06/05 (3)

    149,102    149,105

1.35%, 06/10/05 (3)

    74,551    74,571

1.36%, 06/23/05 (3)

    149,102    149,062

Norddeutsche Landesbank

          

1.59%, 07/27/05 (3)

    149,102    149,050

Nordea Bank PLC

          

2.11%, 06/07/05 (3)

    149,102    149,077

Prudential Funding LLC

          

1.60%, 12/01/04 (3)

    74,551    74,150

Toronto-Dominion Bank

          

1.22%, 03/23/05 (3)

    260,928    260,900

1.34%, 02/10/05 (3)

    59,641    59,636

1.41%, 11/01/04 (3)

    111,826    111,824

1.77%, 05/10/05 (3)

    74,551    74,545

1.90%, 05/11/05 (3)

    74,551    74,545

UBS Finance (Delaware)

          

1.10%, 09/08/04 (3)

    149,102    148,933

1.11%, 12/17/04 (3)

    223,653    222,708

1.13%, 08/09/04 (3)

    149,102    149,069

1.14%, 09/29/04 (3)

    149,102    148,829
         
          3,106,770

REPURCHASE AGREEMENTS—0.56%

          

Banc of America Securities LLC

          

1.34%, 08/02/04 (3) (6)

    387,665    387,665

Bank of America, N.A.

          

1.37%, 08/02/04 (3) (6)

    745,509    745,509

Goldman Sachs & Co.

          

1.37%, 08/02/04 (3) (6)

    745,509    745,509
         
          1,878,683

U.S. GOVERNMENT AGENCY NOTES—0.24%

          

Federal Home Loan Mortgage Corp.

          

1.28%, 08/19/04 (3)

    59,641    59,605

1.63%, 04/15/05 (3)

    104,371    104,605

1.80%, 01/18/05 (3)

    69,332    68,747

1.80%, 01/19/05 (3)

    74,551    73,917

2.06%, 05/31/05 (3)

    74,332      73,047  

Federal National Mortgage Association

              

1.28%, 08/20/04 (3)

    193,832      193,708  

2.33%, 07/22/05 (3)

    223,653      218,540  
         
            792,169  

MEDIUM-TERM NOTES—0.16%

              

CC USA Inc.

              

1.29%, 04/15/05 (3) (4)

    149,102      149,091  

1.51%, 02/15/05 (3) (4)

    96,916      96,998  

Dorada Finance Inc.

              

1.24%, 08/09/04 (3) (4)

    37,275      37,275  

1.48%, 01/18/05 (3) (4)

    111,826      111,824  

K2 USA LLC

              

1.46%, 01/12/05 (3) (4)

    74,551      74,548  

Sigma Finance Inc.

              

1.24%, 08/06/04 (3)

    37,275      37,275  

WhistleJacket Capital LLC

              

1.32%, 02/04/05 (3) (4)

    37,275      37,272  
         
            544,283  

TOTAL SHORT-TERM INVESTMENTS
(Cost: $19,552,926)

           19,552,926  
         

TOTAL INVESTMENTS IN SECURITIES — 105.75%
(Cost: $357,929,027) (7)

           353,802,130  

Other Assets, Less Liabilities — (5.75%)

           (19,250,317 )
         

NET ASSETS — 100.00%

         $ 334,551,813  
         

NVS - Non-Voting Shares

 

(1) All or a portion of this security represents a security on loan.
(2) Non-income earning security.
(3) All or a portion of this security represents an investment of securities lending collateral.
(4) Security exempt from registration pursuant to Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.
(5) Issuer is an affiliate of the Fund’s investment adviser.
(6) Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 3.61% to 7.00% and maturity dates ranging from 7/1/13 to 7/1/34.
(7) The cost of investments for federal income tax purposes was $358,880,213. Net unrealized depreciation aggregated $5,078,083, of which $12,502,701 represented gross unrealized appreciation on securities and $17,580,784 represented gross unrealized depreciation on securities.

Schedule of Investments (Unaudited)

iSHARES® DOW JONES U.S. ENERGY SECTOR INDEX FUND

July 31, 2004

 

Security

    Shares
    Value

COMMON STOCKS—99.96%

            

COAL—0.52%

            

Arch Coal Inc.

    14,280    $ 482,236

Massey Energy Co. (1)

    55,347      1,530,345

Peabody Energy Corp.

    2,276      127,866
         
            2,140,447

OIL & GAS—84.29%

            

Amerada Hess Corp.

    63,637      5,304,144

Anadarko Petroleum Corp.

    165,136      9,873,481

Apache Corp.

    214,524      9,981,802

Burlington Resources Inc.

    331,060      12,636,560

Cabot Oil & Gas Corp. (1)

    23,583      1,036,945

Chesapeake Energy Corp. (1)

    31,897      489,619

ChevronTexaco Corp.

    923,107      88,295,185

Cimarex Energy Co. (1) (2)

    19,583      637,035

ConocoPhillips

    261,875      20,627,894

Devon Energy Corp.

    142,133      9,876,822

Diamond Offshore Drilling Inc. (1)

    52,065      1,272,469

ENSCO International Inc. (1)

    60,328      1,816,476

EOG Resources Inc.

    90,208      5,732,718

Evergreen Resources Inc. (2)

    25,872      1,058,682

Exxon Mobil Corp.

    2,140,024      99,083,111

Forest Oil Corp. (1) (2)

    12,143      343,525

GlobalSantaFe Corp.

    87,645      2,401,473

Helmerich & Payne Inc. (1)

    36,773      931,092

Kerr-McGee Corp.

    91,679      4,813,147

Marathon Oil Corp.

    196,903      7,417,336

Murphy Oil Corp. (1)

    121,802      9,420,167

Nabors Industries Ltd. (1) (2)

    92,358      4,294,647

Newfield Exploration Co. (1) (2)

    32,470      1,918,003

Noble Corp. (1) (2)

    72,082      2,791,015

Noble Energy Inc.

    44,497      2,461,129

Occidental Petroleum Corp.

    365,624      18,014,294

Patterson-UTI Energy Inc.

    3,740      68,180

Pioneer Natural Resources Co. (1)

    66,079      2,382,148

Rowan Companies Inc. (2)

    3,734      91,184

Stone Energy Corp. (1) (2)

    14,740      666,838

Sunoco Inc.

    38,468      2,622,364

Transocean Inc. (2)

    183,758      5,218,727

Unocal Corp.

    220,616      8,551,076

Valero Energy Corp.

    44,612      3,342,331

Vintage Petroleum Inc.

    25,475      435,622

XTO Energy Inc.

    78,663      2,352,024
         
            348,259,265

OIL & GAS SERVICES—12.81%

          

Baker Hughes Inc.

    260,263    10,488,599

BJ Services Co. (2)

    90,247    4,481,666

Cooper Cameron Corp. (1) (2)

    24,293    1,241,129

Grant Prideco Inc. (2)

    48,018    907,060

Halliburton Co.

    233,650    7,418,388

Hanover Compressor Co. (1) (2)

    32,755    384,544

Key Energy Services Inc. (1) (2)

    49,617    500,139

Lone Star Technologies Inc. (1) (2)

    14,741    491,170

National-Oilwell Inc. (1) (2)

    34,195    1,143,823

Schlumberger Ltd.

    286,760    18,444,403

Seacor Holdings Inc. (1) (2)

    4,433    187,516

Smith International Inc. (1) (2)

    50,621    2,950,192

Tidewater Inc. (1)

    22,752    690,523

Varco International Inc. (2)

    25,154    607,972

Veritas DGC Inc. (1) (2)

    13,456    331,421

Weatherford International Ltd. (2)

    56,624    2,648,871
         
          52,917,416

PIPELINES—2.34%

          

El Paso Corp. (1)

    94,929    748,990

Kinder Morgan Inc.

    78,918    4,735,869

Williams Companies Inc. (1)

    344,746    4,188,664
         
          9,673,523

TOTAL COMMON STOCKS
(Cost: $349,220,234)

         412,990,651
         

Security

    Shares or Principal
    Value

SHORT-TERM INVESTMENTS—5.49%

          

MONEY MARKET FUNDS—1.42%

          

Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares (3) (5)

    3,721,016    3,721,016

Barclays Global Investors Funds Prime Money Market Fund, Institutional Shares (3) (5)

    1,892,486    1,892,486

BlackRock Temp Cash Money Market Fund (3)

    86,851    86,851

Short-Term Investment Co. - Prime Money Market Portfolio (3)

    148,020    148,020
         
          5,848,373

FLOATING RATE NOTES—1.32%

          

Beta Finance Inc.

          

1.30%, 05/04/05 (3) (4)

    103,227    103,211

1.31%, 10/12/04 (3) (4)

    86,022    86,020

1.34%, 09/15/04 (3) (4)

    172,044    172,042

1.42%, 03/15/05 (3) (4)

    86,022    86,065

1.48%, 08/23/04 (3) (4)

    86,022    86,027

Canadian Imperial Bank of Commerce

          

1.24%, 10/07/04 (3)

    129,033    129,030

1.38%, 11/22/04 (3)

    43,011    43,012

1.40%, 10/29/04 (3)

    172,044    172,043

CC USA Inc.

          

1.30%, 05/04/05 (3) (4)

    172,044    172,018

1.61%, 07/29/05 (3) (4)

    172,044    171,993

Depfa Bank PLC

          

1.27%, 06/15/05 (3)

    172,044    172,044

Dorada Finance Inc.

          

1.61%, 07/29/05 (3) (4)

    142,797    142,754

Five Finance Inc.

          

1.42%, 04/29/05 (3) (4)

    137,635    137,625

HBOS Treasury Services PLC

          

1.24%, 04/01/05 (3)

    110,108    110,101

1.58%, 04/22/05 (3)

    172,044    172,044

K2 USA LLC

          

1.34%, 08/16/04 (3) (4)

    43,011    43,011

1.41%, 09/27/04 (3) (4)

    185,808    185,803

1.49%, 06/10/05 (3) (4)

    172,044    172,026

1.61%, 07/25/05 (3) (4)

    86,022    86,005

Links Finance LLC

          

1.33%, 04/15/05 (3)

    172,044    172,020

1.68%, 04/25/05 (3)

    172,044    172,126

Nationwide Building Society

          

1.59%, 07/28/05 (3) (4)

    172,044    172,044

1.63%, 12/09/04 (3)

    142,797    141,963

Northern Rock PLC

          

1.56%, 01/13/05 (3) (4)

    163,442    163,442

Permanent Financing PLC

          

1.31%, 03/10/05 (3)

    172,044    172,044

1.32%, 12/10/04 (3)

    86,022    86,022

1.34%, 06/10/05 (3)

    77,420    77,420

Sigma Finance Inc.

          

1.35%, 11/15/04 (3)

    172,044    172,040

1.52%, 10/07/04 (3)

    172,044    172,038

Tango Finance Corp.

          

1.20%, 05/17/05 (3) (4)

    142,797    142,791

1.23%, 02/25/05 (3) (4)

    96,345    96,334

1.32%, 04/07/05 (3) (4)

    63,140    63,136

1.34%, 01/18/05 (3) (4)

    75,699    75,696

1.42%, 07/25/05 (3) (4)

    172,044    172,027

WhistleJacket Capital LLC

          

1.26%, 10/20/04 (3) (4)

    42,615    42,498

1.34%, 09/15/04 (3) (4)

    86,022    86,020

1.38%, 07/15/05 (3) (4)

    129,033    129,008

1.48%, 06/15/05 (3) (4)

    86,022    86,005

White Pine Finance LLC

          

1.21%, 05/20/05 (3) (4)

    77,420    77,414

1.33%, 04/15/05 (3) (4)

    129,033    129,015

1.33%, 07/05/05 (3) (4)

    86,022    86,005

1.34%, 11/15/04 (3) (4)

    103,227    103,227

1.35%, 06/15/05 (3) (4)

    70,538    70,539

1.40%, 08/26/04 (3) (4)

    86,022    86,021

1.55%, 07/11/05 (3) (4)

    43,011    43,006
         
          5,432,775

COMMERCIAL PAPER—0.99%

          

Alpine Securitization Corp.

          

1.31%, 08/12/04 (3)

    86,022    85,991

Amsterdam Funding Corp.

          

1.30%, 08/13/04 (3)

    129,033    128,982

1.33%, 08/16/04 (3)

    172,044    171,955

1.35%, 08/20/04 (3)

    51,613    51,578

1.37%, 08/24/04 (3)

    60,215    60,165

Barton Capital Corp.

          

1.29%, 08/10/04 (3)

    86,022    85,997

1.30%, 08/13/04 (3)

    70,714    70,686

1.35%, 08/18/04 (3)

    43,011    42,985

Blue Ridge Asset Funding Corp.

          

1.29%, 08/06/04 (3)

    86,022    86,010

Corporate Asset Funding

          

1.42%, 09/03/04 (3)

    51,613    51,549

CRC Funding LLC

          

1.42%, 09/03/04 (3)

    86,022    85,914

Edison Asset Securitization

          

1.07%, 09/21/04 (3)

    86,022    85,894

1.45%, 11/09/04 (3)

    172,044    171,358

1.59%, 12/02/04 (3)

    172,044    171,117

Falcon Asset Securitization Corp.

          

1.29%, 08/09/04 (3)

    163,442    163,401

1.30%, 08/03/04 (3)

    86,022    86,019

1.34%, 08/19/04 (3)

    86,022    85,968

1.37%, 08/24/04 (3)

    68,818    68,760

Ford Credit Auto Receivables

          

1.85%, 01/14/05 (3)

    86,022    85,293

GIRO Funding US Corp.

          

1.55%, 10/15/04 (3)

    112,818    112,459

Grampian Funding LLC

          

1.26%, 10/22/04 (3)

    172,044    171,558

1.44%, 10/27/04 (3)

    172,044    171,452

1.59%, 11/30/04 (3)

    86,022    85,566

Jupiter Securitization Corp.

          

1.30%, 08/12/04 (3)

    86,022    85,991

1.37%, 08/20/04 (3)

    115,099    115,020

Park Avenue Receivables Corp.

          

1.35%, 08/19/04 (3)

    86,022    85,967

Preferred Receivables Funding Corp.

          

1.29%, 08/05/04 (3)

    79,464    79,455

1.36%, 08/23/04 (3)

    86,022    85,954

Receivables Capital Corp.

          

1.30%, 08/12/04 (3)

    60,215    60,194

1.34%, 08/16/04 (3)

    10,288    10,283

1.35%, 08/18/04 (3)

    77,420    77,374

1.35%, 08/19/04 (3)

    29,248    29,229

Scaldis Capital LLC

          

1.34%, 08/16/04 (3)

    172,044    171,955

1.37%, 08/20/04 (3)

    25,807    25,789

1.40%, 08/25/04 (3)

    215,055    214,863

Sydney Capital Corp.

          

1.25%, 10/22/04 (3)

    57,256    57,095

1.31%, 08/12/04 (3)

    68,818    68,793

Thames Asset Global Securitization No. 1 Inc.

          

1.30%, 08/12/04 (3)

    90,795    90,762

1.34%, 08/16/04 (3)

    48,172    48,147

1.36%, 08/20/04 (3)

    129,033    128,945

1.37%, 08/19/04 (3)

    48,057    48,027

1.37%, 08/20/04 (3)

    22,366    22,350

Windmill Funding Corp.

          

1.29%, 08/06/04 (3)

    215,055    215,024
         
          4,101,874

TIME DEPOSITS—0.87%

          

Abbey National Treasury Services PLC

          

1.25%, 01/06/05 (3)

    172,044    172,044

1.33%, 02/10/05 (3)

    86,022    86,015

1.39%, 02/02/05 (3)

    86,022    86,016

1.39%, 04/08/05 (3)

    120,431    120,419

1.40%, 10/25/04 (3)

    172,044    172,034

Bank of New York

          

1.39%, 11/01/04 (3)

    172,044    172,040

1.60%, 12/03/04 (3)

    43,011    43,004

Bank of Nova Scotia

          

1.13%, 10/06/04 (3)

    172,044    172,044

1.24%, 10/07/04 (3)

    129,033    129,031

1.42%, 10/29/04 (3)

    129,033    129,035

National City Bank (Cleveland, Ohio)

          

1.25%, 01/06/05 (3)

    172,044    172,048

1.35%, 06/10/05 (3)

    86,022    86,045

1.36%, 06/23/05 (3)

    172,044    171,998

Norddeutsche Landesbank

          

1.59%, 07/27/05 (3)

    172,044    171,985

Nordea Bank PLC

          

2.11%, 06/07/05 (3)

    172,044    172,015

Prudential Funding LLC

          

1.60%, 12/01/04 (3)

    86,022    85,559

Toronto-Dominion Bank

          

1.22%, 03/23/05 (3)

    301,077    301,044

1.34%, 02/10/05 (3)

    68,818    68,812

1.41%, 11/01/04 (3)

    129,033    129,030

1.77%, 05/10/05 (3)

    86,022    86,015

1.90%, 05/11/05 (3)

    86,022    86,015

UBS Finance (Delaware)

          

1.10%, 09/08/04 (3)

    172,044    171,850

1.11%, 12/17/04 (3)

    258,066    256,976

1.13%, 08/09/04 (3)

    172,044    172,006

1.14%, 09/29/04 (3)

    172,044    171,730
         
          3,584,810

REPURCHASE AGREEMENTS—0.52%

          

Banc of America Securities LLC

          

1.34%, 08/02/04 (3) (6)

    447,315    447,315

Bank of America, N.A.

          

1.37%, 08/02/04 (3) (6)

    860,221    860,221

Goldman Sachs & Co.

          

1.37%, 08/02/04 (3) (6)

    860,221    860,221
         
          2,167,757

U.S. GOVERNMENT AGENCY NOTES—0.22%

          

Federal Home Loan Mortgage Corp.

          

1.28%, 08/19/04 (3)

    68,818    68,776

1.63%, 04/15/05 (3)

    120,431    120,701

1.80%, 01/18/05 (3)

    80,001    79,325

1.80%, 01/19/05 (3)

    86,022    85,291

2.06%, 05/31/05 (3)

    85,769    84,287

Federal National Mortgage Association

          

1.28%, 08/20/04 (3)

    223,657    223,514

2.33%, 07/22/05 (3)

    258,066    252,166
         
          914,060

MEDIUM-TERM NOTES—0.15%

              

CC USA Inc.

              

1.29%, 04/15/05 (3) (4)

    172,044      172,033  

1.51%, 02/15/05 (3) (4)

    111,829      111,923  

Dorada Finance Inc.

              

1.24%, 08/09/04 (3) (4)

    43,011      43,011  

1.48%, 01/18/05 (3) (4)

    129,033      129,030  

K2 USA LLC

              

1.46%, 01/12/05 (3) (4)

    86,022      86,018  

Sigma Finance Inc.

              

1.24%, 08/06/04 (3)

    43,011      43,011  

WhistleJacket Capital LLC

              

1.32%, 02/04/05 (3) (4)

    43,011      43,007  
         
            628,033  

TOTAL SHORT-TERM INVESTMENTS
(Cost: $22,677,682)

           22,677,682  
         

TOTAL INVESTMENTS IN SECURITIES — 105.45%
(Cost: $371,897,916) (7)

           435,668,333  

Other Assets, Less Liabilities — (5.45%)

           (22,514,292 )
         

NET ASSETS — 100.00%

         $ 413,154,041  
         
(1) All or a portion of this security represents a security on loan.
(2) Non-income earning security.
(3) All or a portion of this security represents an investment of securities lending collateral.
(4) Security exempt from registration pursuant to Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.
(5) Issuer is an affiliate of the Fund’s investment adviser.
(6) Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 3.61% to 7.00% and maturity dates ranging from 7/1/13 to 7/1/34.
(7) The cost of investments for federal income tax purposes was $373,527,103. Net unrealized appreciation aggregated $62,141,230, of which $65,109,218 represented gross unrealized appreciation on securities and $2,967,988 represented gross unrealized depreciation on securities.

Schedule of Investments (Unaudited)

iSHARES® DOW JONES U.S. FINANCIAL SECTOR INDEX FUND

July 31, 2004

 

Security

    Shares
    Value

COMMON STOCKS—99.79%

            

BANKS—31.09%

            

AMCORE Financial Inc.

    2,270    $ 64,127

AmSouth Bancorp (1)

    33,470      821,019

Associated Bancorp (1)

    9,696      291,947

BancorpSouth Inc. (1)

    6,936      146,488

Bank of America Corp.

    193,412      16,441,954

Bank of Hawaii Corp.

    5,024      225,728

Bank of New York Co. Inc. (The)

    73,801      2,120,303

Banknorth Group Inc.

    16,293      519,910

BB&T Corp.

    52,625      2,038,166

Cathay General Bancorp

    2,263      151,644

Charter One Financial Inc.

    21,274      944,778

Chittenden Corp. (1)

    3,501      118,929

Citizens Banking Corp. (1)

    3,484      109,398

City National Corp. (1)

    3,945      254,452

Colonial BancGroup Inc. (The)

    12,085      233,120

Comerica Inc.

    15,194      888,393

Commerce Bancorp Inc. (1)

    7,350      369,999

Commerce Bancshares Inc.

    6,025      280,825

Community First Bankshares Inc.

    3,444      110,897

Compass Bancshares Inc.

    11,553      509,372

Cullen/Frost Bankers Inc. (1)

    4,838      208,131

East West Bancorp Inc.

    4,864      164,014

Fifth Third Bancorp

    45,083      2,225,297

First Bancorp (1)

    3,595      152,608

First Horizon National Corp.

    11,703      507,325

First Midwest Bancorp Inc. (1)

    4,448      150,209

First National Bankshares of Florida (1)

    4,533      80,642

FirstMerit Corp. (1)

    6,842      177,481

FNB Corp. (1)

    4,403      88,632

Fremont General Corp. (1)

    6,481      121,713

Fulton Financial Corp. (1)

    12,053      247,207

Greater Bay Bancorp (1)

    4,808      126,691

Hibernia Corp. Class A

    14,685      371,530

Hudson United Bancorp

    4,242      145,288

Huntington Bancshares Inc.

    20,564      502,995

Investors Financial Services Corp. (1)

    6,334      289,337

KeyCorp (1)

    38,899      1,173,972

M&T Bank Corp.

    8,713      812,313

Marshall & Ilsley Corp.

    19,509      749,341

Mellon Financial Corp.

    40,244      1,105,905

Mercantile Bankshares Corp. (1)

    7,477      339,531

National City Corp.

    57,333      2,092,670

National Commerce Financial Corp.

    19,371      629,558

North Fork Bancorp Inc. (1)

    16,296      636,359

Northern Trust Corp.

    19,625      787,551

Old National Bancorp (1)

    6,319      150,392

Pacific Capital Bancorp (1)

    4,119      114,179

Park National Corp. (1)

    1,062      125,019

PNC Financial Services Group

    26,745      1,353,297

Popular Inc.

    23,147      526,363

Provident Bankshares Corp. (1)

    3,226      96,425

Regions Financial Corp.

    43,823    1,301,105

Republic Bancorp Inc. (1)

    6,111    89,526

Silicon Valley Bancshares (1) (2)

    3,386    123,961

Sky Financial Group Inc.

    9,950    232,333

South Financial Group Inc. (The) (1)

    6,538    177,114

SouthTrust Corp.

    31,547    1,223,708

Southwest Bancorp of Texas Inc. (1)

    6,156    125,275

State Street Corp.

    31,861    1,363,969

Sterling Bancshares Inc. (1)

    4,281    55,824

SunTrust Banks Inc.

    25,479    1,680,340

Susquehanna Bancshares Inc. (1)

    4,451    103,575

Synovus Financial Corp.

    24,043    612,375

TCF Financial Corp.

    6,306    380,882

Texas Regional Bancshares Inc. Class A

    2,831    125,951

TrustCo Bank Corp. NY (1)

    7,027    88,821

Trustmark Corp. (1)

    4,807    138,201

U.S. Bancorp

    179,682    5,085,001

UCBH Holdings Inc. (1)

    4,280    167,305

UnionBanCal Corp.

    4,691    272,313

United Bancshares Inc.

    3,864    121,793

Valley National Bancorp (1)

    9,422    234,419

W Holding Co. Inc.

    7,632    125,928

Wachovia Corp.

    124,647    5,523,109

Wells Fargo & Co.

    160,020    9,186,748

Westamerica Bancorp (1)

    2,980    151,175

Whitney Holding Corp.

    3,833    156,616

Wilmington Trust Corp. (1)

    6,355    221,790

Zions Bancorporation

    8,493    513,827
         
          72,476,408

COMMERCIAL SERVICES—0.14%

          

Alliance Data Systems Corp. (2)

    4,205    166,981

MoneyGram International Inc. (2)

    8,391    156,912
         
          323,893

COMPUTERS—0.07%

          

BISYS Group Inc. (The) (1) (2)

    11,460    156,429
         
          156,429

DIVERSIFIED FINANCIAL SERVICES—34.42%

          

Affiliated Managers Group Inc. (1) (2)

    2,809    128,961

American Express Co.

    107,372    5,395,443

AmeriCredit Corp. (1) (2)

    14,883    284,265

Ameritrade Holding Corp. (2)

    26,642    295,460

Bear Stearns Companies Inc. (The)

    9,977    832,281

Capital One Financial Corp.

    22,787    1,579,595

CapitalSource Inc. (1) (2)

    6,218    134,433

Chicago Mercantile Exchange Holdings Inc. (1)

    2,583    324,167

CIT Group Inc.

    20,049    696,903

Citigroup Inc.

    490,610    21,630,995

Countrywide Financial Corp.

    26,505    1,911,010

Doral Financial Corp.

    8,795    345,204

E*TRADE Financial Corp. (2)

    34,603    383,055

Eaton Vance Corp. (1)

    5,647    214,247

Edwards (A.G.) Inc.

    7,623    247,748

Federal Home Loan Mortgage Corp.

    65,263    4,197,064

Federal National Mortgage Association

    82,848    5,878,894

Federated Investors Inc. Class B

    9,029    253,805

Franklin Resources Inc.

    13,341    643,703

Friedman, Billings, Ramsey Group Inc. Class A

    13,392    220,298

Goldman Sachs Group Inc. (The)

    39,130    3,450,875

IndyMac Bancorp Inc. (1)

    5,404    179,521

Investment Technology Group Inc. (1) (2)

    3,993    52,468

Janus Capital Group Inc.

    22,661    300,485

Jefferies Group Inc.

    4,793    150,213

JP Morgan Chase & Co.

    338,020    12,618,287

Knight Trading Group Inc. (1) (2)

    10,460    89,015

LaBranche & Co. Inc. (1) (2)

    2,816    23,063

Legg Mason Inc. (1)

    6,325    496,766

Lehman Brothers Holdings Inc.

    26,270    1,841,527

MBNA Corp.

    107,189    2,646,496

Merrill Lynch & Co. Inc.

    83,491    4,151,173

Morgan Stanley

    95,031    4,687,879

New Century Financial Corp. (1)

    3,178    149,525

Piper Jaffray Companies Inc. (1) (2)

    1,855    75,591

Providian Financial Corp. (2)

    27,585    381,776

Raymond James Financial Inc.

    5,748    134,331

Schwab (Charles) Corp. (The)

    98,406    864,005

SLM Corp.

    41,635    1,578,799

SWS Group Inc.

    1,305    17,879

T. Rowe Price Group Inc.

    12,031    556,073

W.P. Stewart & Co. Ltd. (1)

    1,994    38,903

Waddell & Reed Financial Inc. Class A (1)

    7,962    154,622
         
          80,236,803

HOLDING COMPANIES—DIVERSIFIED—0.10%

          

Leucadia National Corp.

    4,375    225,269
         
          225,269

INSURANCE—22.00%

          

ACE Ltd.

    26,841    1,089,476

AFLAC Inc.

    48,253    1,912,749

Allmerica Financial Corp. (2)

    5,065    150,988

Allstate Corp. (The)

    66,726    3,141,460

Ambac Financial Group Inc.

    10,318    733,713

American Financial Group Inc.

    3,548    105,340

American International Group Inc.

    217,338    15,354,930

American National Insurance Co. (1)

    1,323    121,055

AmerUs Group Co. (1)

    3,685    141,873

AON Corp.

    24,608    650,636

Axis Capital Holdings Ltd.

    11,400    292,980

Berkley (W.R.) Corp.

    6,846    280,275

Brown & Brown Inc. (1)

    5,273    224,208

Chubb Corp.

    18,039    1,240,722

Cincinnati Financial Corp.

    14,145    564,103

CNA Financial Corp. (1) (2)

    3,130    82,569

Commerce Group Inc. (1)

    2,754    133,321

Conseco Inc. (2)

    13,810    248,304

Delphi Financial Group Inc. Class A (1)

    2,658    107,782

Endurance Specialty Holdings Ltd.

    4,310    142,446

Erie Indemnity Co. Class A (1)

    2,782    126,080

Everest Re Group Ltd.

    5,274    387,534

Fidelity National Financial Inc.

    15,153    549,296

First American Corp.

    7,424    199,409

Gallagher (Arthur J.) & Co. (1)

    8,683    268,913

Hartford Financial Services Group Inc.

    27,674    1,801,577

HCC Insurance Holdings Inc. (1)

    5,677    172,013

Hilb, Rogal & Hobbs Co. (1)

    3,067    103,021

Horace Mann Educators Corp. (1)

    3,973    66,587

IPC Holdings Ltd.

    3,416    128,100

Jefferson-Pilot Corp.

    13,276    639,638

Lincoln National Corp.

    16,958    741,065

Loews Corp.

    11,847    670,896

Markel Corp. (1) (2)

    818    231,085

Marsh & McLennan Cos. Inc.

    47,056    2,088,345

MBIA Inc.

    13,730    741,145

Mercury General Corp.

    2,534    119,427

MetLife Inc.

    30,194    1,077,020

MGIC Investment Corp.

    9,383    666,193

Montpelier Re Holdings Ltd.

    4,584    162,182

Nationwide Financial Services Inc.

    5,418    192,176

Ohio Casualty Corp. (1) (2)

    5,599    104,701

Old Republic International Corp.

    16,184    376,925

PartnerRe Ltd. (1)

    5,084    265,944

Philadelphia Consolidated Holding Corp. (1) (2)

    1,723    94,196

Phoenix Companies Inc.

    8,469    87,824

Platinum Underwriters Holdings Ltd.

    2,663    74,111

PMI Group Inc. (The)

    9,076    374,203

Presidential Life Corp. (1)

    1,914    33,591

Principal Financial Group Inc.

    30,252    1,028,265

Progressive Corp. (The)

    18,117    1,388,125

Protective Life Corp.

    6,136    222,430

Prudential Financial Inc.

    49,921    2,324,322

Radian Group Inc.

    8,967    412,661

Reinsurance Group of America Inc. (1)

    2,448    97,553

RenaissanceRe Holdings Ltd. (1)

    6,324    335,172

SAFECO Corp.

    13,177    620,110

Selective Insurance Group Inc. (1)

    2,665    95,967

St. Paul Travelers Companies Inc.

    63,309    2,346,865

StanCorp Financial Group Inc.

    2,717    191,005

Torchmark Corp.

    10,605    554,429

Transatlantic Holdings Inc. (1)

    2,516    142,481

Unitrin Inc.

    4,198    174,847

UNUMProvident Corp. (1)

    25,249    402,722

White Mountains Insurance Group Ltd.

    586    296,223

Willis Group Holdings Ltd.

    13,713    477,212

XL Capital Ltd. Class A (1)

    13,089    925,131
         
          51,297,647

INTERNET—0.03%

          

NetBank Inc. (1)

    4,429    47,567

Safeguard Scientifics Inc. (2)

    11,592    22,025
         
          69,592

REAL ESTATE—0.11%

          

LNR Property Corp. (1)

    1,921    103,753

St. Joe Company (The) (1)

    3,770    162,185
         
          265,938

REAL ESTATE INVESTMENT TRUSTS—8.13%

          

Alexandria Real Estate Equities Inc. (1)

    1,881    113,029

AMB Property Corp.

    7,767    272,932

American Financial Realty Trust

    10,614    140,636

Annaly Mortgage Management Inc.

    11,312    186,648

Apartment Investment & Management Co. Class A

    8,910    284,853

Archstone-Smith Trust

    17,428    512,906

Arden Realty Group Inc.

    6,123    186,139

AvalonBay Communities Inc. (1)

    6,839    398,030

Boston Properties Inc. (1)

    10,148    536,829

Brandywine Realty Trust

    4,284    116,953

BRE Properties Inc. Class A (1)

    4,496    155,786

Camden Property Trust

    3,428    154,260

Capital Automotive (1)

    3,062    88,767

CarrAmerica Realty Corp.

    5,121    156,139

Catellus Development Corp.

    8,257    206,425

CBL & Associates Properties Inc.

    2,872    158,247

CenterPoint Properties Trust (1)

    4,417    169,524

Chelsea Property Group Inc.

    4,150    270,248

Colonial Properties Trust (1)

    2,259    85,842

Cousins Properties Inc. (1)

    3,656    117,467

Crescent Real Estate Equities Co.

    8,829    138,704

CRT Properties Inc.

    2,452    52,963

Developers Diversified Realty Corp.

    9,583    343,838

Duke Realty Corp.

    12,637    388,714

Equity Inns Inc.

    4,192    38,021

Equity Office Properties Trust

    38,249    992,562

Equity Residential

    26,637    787,123

Essex Property Trust Inc. (1)

    1,985    130,812

Federal Realty Investment Trust (1)

    4,915    207,413

FelCor Lodging Trust Inc. (1) (2)

    4,253    48,484

First Industrial Realty Trust Inc. (1)

    3,982    145,900

Gables Residential Trust (1)

    2,834    93,664

General Growth Properties Inc.

    20,752    624,220

Glenborough Realty Trust Inc.

    3,099    56,650

Health Care Property Investors Inc.

    12,504    312,100

Health Care REIT Inc. (1)

    4,790    154,573

Healthcare Realty Trust Inc.

    4,040    145,925

Highwoods Properties Inc. (1)

    5,077    117,786

Home Properties Inc.

    2,937    110,431

Hospitality Properties Trust

    5,977    238,363

Host Marriott Corp. (2)

    25,470    329,837

HRPT Properties Trust

    16,739    168,562

Impac Mortgage Holdings Inc.

    5,978    137,195

iStar Financial Inc.

    10,439    396,682

Kilroy Realty Corp. (1)

    2,683    94,978

Kimco Realty Corp.

    8,901    428,138

Liberty Property Trust

    7,500    288,000

Macerich Co. (The)

    5,508    263,833

Mack-Cali Realty Corp.

    5,809    237,588

Manufactured Home Communities Inc. (1)

    1,955    61,954

Meristar Hospitality Corp. (1) (2)

    7,304    42,363

Mills Corp.

    4,056    184,954

Nationwide Health Properties Inc.

    6,455    123,291

New Plan Excel Realty Trust Inc. (1)

    9,451    224,461

Novastar Financial Inc. (1)

    2,412    96,745

Pan Pacific Retail Properties Inc.

    3,850    194,810

Pennsylvania Real Estate Investment Trust

    3,473    121,104

Plum Creek Timber Co. Inc.

    17,429    546,922

Post Properties Inc. (1)

    3,871    108,349

Prentiss Properties Trust (1)

    3,754    128,612

ProLogis

    16,242    552,878

Public Storage Inc.

    8,272    389,859

Rayonier Inc.

    4,640    204,067

Realty Income Corp. (1)

    3,700    149,924

Reckson Associates Realty Corp.

    6,296    174,462

Redwood Trust Inc. (1)

    2,026    115,016

Regency Centers Corp.

    5,305    225,463

Rouse Co. (The)

    9,000    439,200

Shurgard Storage Centers Inc. Class A

    4,428    163,836

Simon Property Group Inc.

    17,410    898,530

SL Green Realty Corp.

    3,653    179,362

Taubman Centers Inc. (1)

    4,444    102,656

Thornburg Mortgage Inc. (1)

    7,698    213,466

Trizec Properties Inc. (1)

    8,788    141,047

United Dominion Realty Trust Inc. (1)

    12,096    234,541

Ventas Inc. (1)

    7,889    201,327

Vornado Realty Trust

    10,255    595,713

Washington Real Estate Investment Trust

    4,004    111,872

Weingarten Realty Investors

    7,512    231,370
         
          18,942,873

SAVINGS & LOANS—3.58%

          

Anchor BanCorp Wisconsin Inc.

    1,994    50,727

Astoria Financial Corp.

    6,705    229,043

Commercial Federal Corp.

    3,794    99,896

Dime Community Bancshares

    3,265    54,264

Downey Financial Corp.

    1,957    105,189

First Niagara Financial Group Inc. (1)

    7,529    91,779

FirstFed Financial Corp. (2)

    1,546    70,049

Golden West Financial Corp.

    12,382    1,323,760

GreenPoint Financial Corp.

    10,652    432,791

Harbor Florida Bancshares Inc. (1)

    1,988    57,235

Hudson City Bancorp Inc. (1)

    6,485    224,770

Independence Community Bank Corp.

    7,343    274,188

MAF Bancorp Inc. (1)

    2,867    115,110

New York Community Bancorp Inc. (1)

    22,869    440,000

OceanFirst Financial Corp.

    913    21,136

People’s Bank (1)

    8,888    280,061

PFF Bancorp Inc.

    1,274    46,781

Provident Financial Services Inc.

    7,351    129,743

Sovereign Bancorp Inc. (1)

    32,493    707,373

Washington Federal Inc. (1)

    7,404    185,470

Washington Mutual Inc.

    81,969    3,180,397

Webster Financial Corp.

    5,041    236,524
         
          8,356,286

SOFTWARE—0.12%

          

SEI Investments Co.

    6,526    200,152

Total System Services Inc.

    3,556    80,863
         
          281,015

TOTAL COMMON STOCKS
(Cost: $215,299,685)

         232,632,153
         

Security

    Shares or Principal
    Value

SHORT-TERM INVESTMENTS—6.92%

          

MONEY MARKET FUNDS—1.76%

          

Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares (3) (5)

    2,572,749    2,572,749

Barclays Global Investors Funds Prime Money Market Fund, Institutional Shares (3) (5)

    1,353,590    1,353,590

BlackRock Temp Cash Money Market Fund (3)

    62,120    62,120

Short-Term Investment Co. — Prime Money Market Portfolio (3)

    105,870    105,870
         
          4,094,329

FLOATING RATE NOTES—1.67%

          

Beta Finance Inc.

          

1.30%, 05/04/05 (3) (4)

    73,832    73,821

1.31%, 10/12/04 (3) (4)

    61,527    61,526

1.34%, 09/15/04 (3) (4)

    123,054    123,052

1.42%, 03/15/05 (3) (4)

    61,527    61,557

1.48%, 08/23/04 (3) (4)

    61,527    61,530

Canadian Imperial Bank of Commerce

          

1.24%, 10/07/04 (3)

    92,290    92,288

1.38%, 11/22/04 (3)

    30,763    30,764

1.40%, 10/29/04 (3)

    123,054    123,053

CC USA Inc.

          

1.30%, 05/04/05 (3) (4)

    123,054    123,035

1.61%, 07/29/05 (3) (4)

    123,054    123,017

Depfa Bank PLC

          

1.27%, 06/15/05 (3)

    123,054    123,054

Dorada Finance Inc.

          

1.61%, 07/29/05 (3) (4)

    102,135    102,104

Five Finance Inc.

          

1.42%, 04/29/05 (3) (4)

    98,443    98,436

HBOS Treasury Services PLC

          

1.24%, 04/01/05 (3)

    78,754    78,750

1.58%, 04/22/05 (3)

    123,054    123,054

K2 USA LLC

          

1.34%, 08/16/04 (3) (4)

    30,763    30,763

1.41%, 09/27/04 (3) (4)

    132,898    132,895

1.49%, 06/10/05 (3) (4)

    123,054    123,041

1.61%, 07/25/05 (3) (4)

    61,527    61,515

Links Finance LLC

          

1.33%, 04/15/05 (3)

    123,054    123,036

1.68%, 04/25/05 (3)

    123,054    123,113

Nationwide Building Society

          

1.59%, 07/28/05 (3) (4)

    123,054    123,054

1.63%, 12/09/04 (3)

    102,135    101,538

Northern Rock PLC

          

1.56%, 01/13/05 (3) (4)

    116,901    116,901

Permanent Financing PLC

          

1.31%, 03/10/05 (3)

    123,054    123,054

1.32%, 12/10/04 (3)

    61,527    61,527

1.34%, 06/10/05 (3)

    55,374    55,374

Sigma Finance Inc.

          

1.35%, 11/15/04 (3)

    123,054    123,051

1.52%, 10/07/04 (3)

    123,054    123,050

Tango Finance Corp.

          

1.20%, 05/17/05 (3) (4)

    102,135    102,130

1.23%, 02/25/05 (3) (4)

    68,910    68,902

1.32%, 04/07/05 (3) (4)

    45,161    45,158

1.34%, 01/18/05 (3) (4)

    54,144    54,141

1.42%, 07/25/05 (3) (4)

    123,054    123,042

WhistleJacket Capital LLC

          

1.26%, 10/20/04 (3) (4)

    30,480    30,397

1.34%, 09/15/04 (3) (4)

    61,527    61,525

1.38%, 07/15/05 (3) (4)

    92,290    92,272

1.48%, 06/15/05 (3) (4)

    61,527    61,515

White Pine Finance LLC

          

1.21%, 05/20/05 (3) (4)

    55,374    55,370

1.33%, 04/15/05 (3) (4)

    92,290    92,277

1.33%, 07/05/05 (3) (4)

    61,527    61,514

1.34%, 11/15/04 (3) (4)

    73,832    73,832

1.35%, 06/15/05 (3) (4)

    50,452    50,452

1.40%, 08/26/04 (3) (4)

    61,527    61,526

1.55%, 07/11/05 (3) (4)

    30,763    30,760
         
          3,885,766

COMMERCIAL PAPER—1.26%

          

Alpine Securitization Corp.

          

1.31%, 08/12/04 (3)

    61,527    61,504

Amsterdam Funding Corp.

          

1.30%, 08/13/04 (3)

    92,290    92,254

1.33%, 08/16/04 (3)

    123,054    122,990

1.35%, 08/20/04 (3)

    36,916    36,891

1.37%, 08/24/04 (3)

    43,069    43,033

Barton Capital Corp.

          

1.29%, 08/10/04 (3)

    61,527    61,509

1.30%, 08/13/04 (3)

    50,578    50,557

1.35%, 08/18/04 (3)

    30,763    30,745

Blue Ridge Asset Funding Corp.

          

1.29%, 08/06/04 (3)

    61,527    61,519

Corporate Asset Funding

          

1.42%, 09/03/04 (3)

    36,916    36,870

CRC Funding LLC

          

1.42%, 09/03/04 (3)

    61,527    61,449

Edison Asset Securitization

          

1.07%, 09/21/04 (3)

    61,527    61,435

1.45%, 11/09/04 (3)

    123,054    122,563

1.59%, 12/02/04 (3)

    123,054    122,391

Falcon Asset Securitization Corp.

          

1.29%, 08/09/04 (3)

    116,901    116,872

1.30%, 08/03/04 (3)

    61,527    61,525

1.34%, 08/19/04 (3)

    61,527    61,488

1.37%, 08/24/04 (3)

    49,221    49,180

Ford Credit Auto Receivables

          

1.85%, 01/14/05 (3)

    61,527    61,005

GIRO Funding US Corp.

          

1.55%, 10/15/04 (3)

    80,692    80,435

Grampian Funding LLC

          

1.26%, 10/22/04 (3)

    123,054    122,706

1.44%, 10/27/04 (3)

    123,054    122,630

1.59%, 11/30/04 (3)

    61,527    61,201

Jupiter Securitization Corp.

          

1.30%, 08/12/04 (3)

    61,527    61,505

1.37%, 08/20/04 (3)

    82,324    82,268

Park Avenue Receivables Corp.

          

1.35%, 08/19/04 (3)

    61,527    61,488

Preferred Receivables Funding Corp.

          

1.29%, 08/05/04 (3)

    56,836    56,830

1.36%, 08/23/04 (3)

    61,527    61,479

Receivables Capital Corp.

          

1.30%, 08/12/04 (3)

    43,069    43,053

1.34%, 08/16/04 (3)

    7,359    7,355

1.35%, 08/18/04 (3)

    55,374    55,341

1.35%, 08/19/04 (3)

    20,919    20,906

Scaldis Capital LLC

          

1.34%, 08/16/04 (3)

    123,054    122,990

1.37%, 08/20/04 (3)

    18,458    18,446

1.40%, 08/25/04 (3)

    153,817    153,679

Sydney Capital Corp.

          

1.25%, 10/22/04 (3)

    40,952    40,837

1.31%, 08/12/04 (3)

    49,221    49,204

Thames Asset Global Securitization No. 1 Inc.

          

1.30%, 08/12/04 (3)

    64,940    64,917

1.34%, 08/16/04 (3)

    34,455    34,437

1.36%, 08/20/04 (3)

    92,290    92,227

1.37%, 08/19/04 (3)

    34,373    34,350

1.37%, 08/20/04 (3)

    15,997    15,986

Windmill Funding Corp.

          

1.29%, 08/06/04 (3)

    153,817    153,796
         
          2,933,846

TIME DEPOSITS—1.10%

          

Abbey National Treasury Services PLC

          

1.25%, 01/06/05 (3)

    123,054    123,040

1.33%, 02/10/05 (3)

    61,527    61,522

1.39%, 02/02/05 (3)

    61,527    61,522

1.39%, 04/08/05 (3)

    86,138    86,129

1.40%, 10/25/04 (3)

    123,054    123,049

Bank of New York

          

1.39%, 11/01/04 (3)

    123,054    123,051

1.60%, 12/03/04 (3)

    30,763    30,758

Bank of Nova Scotia

          

1.13%, 10/06/04 (3)

    123,054    123,054

1.24%, 10/07/04 (3)

    92,290    92,289

1.42%, 10/29/04 (3)

    92,290    92,292

National City Bank (Cleveland, Ohio)

          

1.25%, 01/06/05 (3)

    123,054    123,056

1.35%, 06/10/05 (3)

    61,527      61,543  

1.36%, 06/23/05 (3)

    123,054      123,021  

Norddeutsche Landesbank

              

1.59%, 07/27/05 (3)

    123,054      123,011  

Nordea Bank PLC

              

2.11%, 06/07/05 (3)

    123,054      123,033  

Prudential Funding LLC

              

1.60%, 12/01/04 (3)

    61,527      61,196  

Toronto-Dominion Bank

              

1.22%, 03/23/05 (3)

    215,344      215,320  

1.34%, 02/10/05 (3)

    49,221      49,218  

1.41%, 11/01/04 (3)

    92,290      92,288  

1.77%, 05/10/05 (3)

    61,527      61,523  

1.90%, 05/11/05 (3)

    61,527      61,522  

UBS Finance (Delaware)

              

1.10%, 09/08/04 (3)

    123,054      122,915  

1.11%, 12/17/04 (3)

    184,580      183,801  

1.13%, 08/09/04 (3)

    123,054      123,027  

1.14%, 09/29/04 (3)

    123,054      122,829  
         
            2,564,009  

REPURCHASE AGREEMENTS—0.66%

              

Banc of America Securities LLC

              

1.34%, 08/02/04 (3) (6)

    319,939      319,939  

Bank of America, N.A.

              

1.37%, 08/02/04 (3) (6)

    615,268      615,269  

Goldman Sachs & Co.

              

1.37%, 08/02/04 (3) (6)

    615,268      615,269  
         
            1,550,477  

U.S. GOVERNMENT AGENCY NOTES—0.28%

              

Federal Home Loan Mortgage Corp.

              

1.28%, 08/19/04 (3)

    49,221      49,192  

1.63%, 04/15/05 (3)

    86,138      86,331  

1.80%, 01/18/05 (3)

    57,220      56,736  

1.80%, 01/19/05 (3)

    61,527      61,004  

2.06%, 05/31/05 (3)

    61,346      60,286  

Federal National Mortgage Association

              

1.28%, 08/20/04 (3)

    159,970      159,868  

2.33%, 07/22/05 (3)

    184,580      180,360  
         
            653,777  

MEDIUM-TERM NOTES—0.19%

              

CC USA Inc.

              

1.29%, 04/15/05 (3) (4)

    123,054      123,045  

1.51%, 02/15/05 (3) (4)

    79,985      80,052  

Dorada Finance Inc.

              

1.24%, 08/09/04 (3) (4)

    30,763      30,763  

1.48%, 01/18/05 (3) (4)

    92,290      92,288  

K2 USA LLC

              

1.46%, 01/12/05 (3) (4)

    61,527      61,524  

Sigma Finance Inc.

              

1.24%, 08/06/04 (3)

    30,763      30,763  

WhistleJacket Capital LLC

              

1.32%, 02/04/05 (3) (4)

    30,763      30,760  
         
            449,195  

TOTAL SHORT-TERM INVESTMENTS
(Cost: $16,131,399)

           16,131,399  
         

TOTAL INVESTMENTS IN SECURITIES — 106.71%
(Cost: $231,431,084) (7)

           248,763,552  

Other Assets, Less Liabilities — (6.71%)

           (15,647,092 )
         

NET ASSETS — 100.00%

         $ 233,116,460  
         
(1) All or a portion of this security represents a security on loan.

(2) Non-income earning security.
(3) All or a portion of this security represents an investment of securities lending collateral.
(4) Security exempt from registration pursuant to Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.
(5) Issuer is an affiliate of the Fund’s investment adviser.
(6) Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 3.61% to 7.00% and maturity dates ranging from 7/1/13 to 7/1/34.
(7) The cost of investments for federal income tax purposes was $233,010,367. Net unrealized appreciation aggregated $15,753,185, of which $23,455,100 represented gross unrealized appreciation on securities and $7,701,915 represented gross unrealized depreciation on securities.

Schedule of Investments (Unaudited)

iSHARES® DOW JONES U.S. HEALTHCARE SECTOR INDEX FUND

July 31, 2004

 

Security

    Shares
    Value

COMMON STOCKS—99.89%

            

AGRICULTURE—0.69%

            

Delta & Pine Land Co. (1)

    15,938    $ 357,808

Monsanto Co.

    118,835      4,308,957
         
            4,666,765

BIOTECHNOLOGY—11.06%

            

Affymetrix Inc. (1) (2)

    26,928      727,325

Alexion Pharmaceuticals Inc. (2)

    12,067      192,107

Amgen Inc. (2)

    568,789      32,352,718

Applera Corp. - Celera Genomics Group (1) (2)

    32,668      383,522

Biogen Idec Inc. (2)

    152,012      9,120,720

Bio-Rad Laboratories Inc. Class A (1) (2)

    7,196      377,070

Celgene Corp. (1) (2)

    36,646      1,954,331

Cell Genesys Inc. (2)

    19,845      143,082

Charles River Laboratories International Inc. (1) (2)

    20,726      934,121

Chiron Corp. (2)

    49,204      2,255,019

CuraGen Corp. (1) (2)

    17,948      95,483

Enzo Biochem Inc. (1) (2)

    12,781      174,333

Enzon Pharmaceuticals Inc. (2)

    19,543      242,529

Gene Logic Inc. (2)

    13,740      53,449

Genentech Inc. (2)

    197,956      9,636,498

Genzyme Corp. (2)

    101,358      5,197,638

Human Genome Sciences Inc. (1) (2)

    57,889      580,337

ICOS Corp. (1) (2)

    26,064      627,100

Immunomedics Inc. (1) (2)

    17,582      70,328

Incyte Corp. (1) (2)

    32,155      197,753

InterMune Inc. (1) (2)

    12,591      150,966

Invitrogen Corp. (2)

    23,380      1,226,982

Lexicon Genetics Inc. (1) (2)

    19,190      116,291

Martek Biosciences Corp. (1) (2)

    13,082      619,040

Maxygen Inc. (1) (2)

    12,350      122,388

MedImmune Inc. (2)

    111,317      2,564,744

Millennium Pharmaceuticals Inc. (2)

    126,224      1,403,611

Myriad Genetics Inc. (1) (2)

    12,098      165,743

Nektar Therapeutics (2)

    37,189      652,295

Praecis Pharmaceuticals Inc. (1) (2)

    23,024      55,948

Protein Design Labs Inc. (2)

    42,127      682,457

Regeneron Pharmaceuticals Inc. (1) (2)

    16,884      144,527

Savient Pharmaceuticals Inc. (1) (2)

    25,909      54,150

Telik Inc. (2)

    19,371      382,771

Transkaryotic Therapies Inc. (1) (2)

    12,578      187,538

Vertex Pharmaceuticals Inc. (2)

    34,794      321,149

XOMA Ltd. (1) (2)

    37,538      136,638
         
            74,302,701

COMMERCIAL SERVICES—0.26%

            

Albany Molecular Research Inc. (1) (2)

    11,148      132,438

First Health Group Corp. (1) (2)

    41,191      577,498

PAREXEL International Corp. (1) (2)

    11,768      226,063

Pharmaceutical Product Development Inc. (1) (2)

    22,268      780,716
         
            1,716,715

ELECTRONICS—0.55%

            

Applera Corp. - Applied Biosystems Group

    90,328      1,868,886

Fisher Scientific International Inc. (1) (2)

    28,618      1,665,568

Molecular Devices Corp. (1) (2)

    6,591      134,522
         
            3,668,976

HEALTH CARE-PRODUCTS—27.80%

            

Advanced Medical Optics Inc. (1) (2)

    13,275      505,114

Alcon Inc. (1)

    35,219      2,697,775

Apogent Technologies Inc. (2)

    40,029    1,300,943

ArthroCare Corp. (1) (2)

    9,453    251,733

Bard (C.R.) Inc.

    46,416    2,562,163

Bausch & Lomb Inc. (1)

    23,508    1,447,858

Baxter International Inc.

    274,227    8,246,006

Beckman Coulter Inc.

    27,546    1,519,713

Becton, Dickinson & Co.

    113,323    5,352,245

Biomet Inc.

    105,628    4,646,576

Biosite Inc. (1) (2)

    7,013    309,904

Boston Scientific Corp. (2)

    267,592    10,238,070

Cooper Companies Inc.

    14,557    865,414

Cyberonics Inc. (1) (2)

    8,203    229,520

Cytyc Corp. (1) (2)

    49,303    1,191,654

Dade Behring Holdings Inc. (2)

    19,013    944,756

Datascope Corp. (1)

    5,598    194,307

DENTSPLY International Inc.

    31,900    1,551,297

Diagnostic Products Corp. (1)

    10,102    405,595

Edwards Lifesciences Corp. (1) (2)

    26,678    938,265

Gen-Probe Inc. (2)

    21,946    821,219

Guidant Corp.

    140,338    7,763,498

Haemonetics Corp. (2)

    11,109    333,270

Hillenbrand Industries Inc.

    26,243    1,490,340

IDEXX Laboratories Inc. (2)

    15,619    787,041

INAMED Corp. (2)

    15,814    856,803

Invacare Corp. (1)

    13,381    542,600

Johnson & Johnson

    1,327,824    73,388,832

Medtronic Inc.

    542,195    26,930,826

Mentor Corp. (1)

    16,609    523,017

Patterson Cos. Inc. (1) (2)

    25,983    1,907,672

PolyMedica Corp. (1)

    11,775    358,667

ResMed Inc. (1) (2)

    15,178    743,722

Respironics Inc. (2)

    15,632    871,015

St. Jude Medical Inc. (2)

    78,823    5,370,211

Steris Corp. (1) (2)

    31,264    642,788

Stryker Corp.

    124,087    5,916,468

Sybron Dental Specialties Inc. (2)

    17,202    462,734

TECHNE Corp. (1) (2)

    18,441    733,952

Varian Medical Systems Inc. (2)

    30,602    2,111,844

Viasys Healthcare Inc. (2)

    11,789    178,603

VISX Inc. (1) (2)

    19,311    413,449

Zimmer Holdings Inc. (2)

    109,178    8,331,373
         
          186,878,852

HEALTH CARE-SERVICES—10.92%

          

Aetna Inc.

    68,187    5,850,445

AMERIGROUP Corp. (1) (2)

    10,944    524,874

Anthem Inc. (1) (2)

    62,025    5,115,202

Apria Healthcare Group Inc. (1) (2)

    22,443    658,702

Beverly Enterprises Inc. (1) (2)

    47,745    376,231

Community Health Systems Inc. (2)

    33,871    833,565

Covance Inc. (2)

    28,022    1,028,127

Coventry Health Care Inc. (2)

    32,816    1,677,226

DaVita Inc. (2)

    43,974    1,335,490

HCA Inc. (1)

    193,543    7,480,437

Health Management Associates Inc. Class A (1)

    108,769    2,181,906

Health Net Inc. (1) (2)

    50,431    1,216,900

Humana Inc. (2)

    72,401    1,311,182

Laboratory Corp. of America Holdings (2)

    63,259    2,477,222

LifePoint Hospitals Inc. (1) (2)

    15,752    526,274

Lincare Holdings Inc. (1) (2)

    44,486    1,420,883

Manor Care Inc.

    39,786    1,243,313

Odyssey Healthcare Inc. (1) (2)

    16,231    278,849

Orthodontic Centers of America Inc. (1) (2)

    20,547    138,898

PacifiCare Health Systems Inc. (1) (2)

    38,490    1,176,639

Pediatrix Medical Group Inc. (1) (2)

    10,909    689,885

Province Healthcare Co. (1) (2)

    19,432    282,347

Quest Diagnostics Inc.

    35,701    2,930,338

Renal Care Group Inc. (1) (2)

    30,005    955,959

Select Medical Corp. (1)

    45,785    587,879

Sunrise Senior Living Inc. (1) (2)

    8,082    285,295

Tenet Healthcare Corp. (2)

    208,300    2,328,794

Triad Hospitals Inc. (1) (2)

    34,011    1,158,415

UnitedHealth Group Inc.

    297,282    18,699,068

Universal Health Services Inc. Class B

    22,231    1,011,733

US Oncology Inc. (2)

    38,501    572,510

WellPoint Health Networks Inc. (2)

    69,642    7,040,806
         
          73,395,394

INSURANCE—0.58%

          

CIGNA Corp.

    63,268    3,923,249
         
          3,923,249

PHARMACEUTICALS—48.03%

          

Abbott Laboratories

    697,613    27,451,071

Abgenix Inc. (2)

    34,903    341,177

Accredo Health Inc. (2)

    21,792    706,061

Alkermes Inc. (1) (2)

    39,897    430,489

Allergan Inc.

    58,772    4,445,514

Alpharma Inc. Class A (1)

    17,847    293,405

American Pharmaceutical Partners Inc. (1) (2)

    18,123    538,253

Amylin Pharmaceuticals Inc. (1) (2)

    36,958    761,335

Andrx Group (2)

    32,650    846,941

Barr Pharmaceuticals Inc. (2)

    40,146    1,379,015

Bristol-Myers Squibb Co.

    869,670    19,915,443

Caremark Rx Inc. (2)

    207,438    6,326,859

Cell Therapeutics Inc. (1) (2)

    20,568    112,096

Cephalon Inc. (1) (2)

    25,024    1,264,212

Cubist Pharmaceuticals Inc. (1) (2)

    17,749    184,235

CV Therapeutics Inc. (1) (2)

    13,808    184,889

Express Scripts Inc. (2)

    28,294    1,856,086

Forest Laboratories Inc. (2)

    164,557    8,275,572

Gilead Sciences Inc. (2)

    95,892    6,198,459

Hospira Inc. (2)

    70,016    1,814,115

ImClone Systems Inc. (1) (2)

    27,445    1,617,059

Impax Laboratories Inc. (2)

    21,572    305,244

IVAX Corp. (2)

    74,609    1,779,425

King Pharmaceuticals Inc. (2)

    107,914    1,218,349

Ligand Pharmaceuticals Inc. Class B (1) (2)

    30,504    421,260

Lilly (Eli) & Co.

    431,691    27,507,351

Medarex Inc. (1) (2)

    35,561    218,345

Medco Health Solutions Inc. (2)

    121,287    3,674,996

Medicines Co. (The) (1) (2)

    19,844    525,072

Medicis Pharmaceutical Corp. Class A (1)

    24,983    893,642

Merck & Co. Inc.

    993,919    45,074,227

MGI Pharma Inc. (1) (2)

    31,658    886,741

Mylan Laboratories Inc.

    120,009    1,778,533

Nabi Biopharmaceuticals (1) (2)

    25,967    299,919

Neurocrine Biosciences Inc. (2)

    16,202    754,527

Noven Pharmaceuticals Inc. (1) (2)

    10,179    205,718

NPS Pharmaceuticals Inc. (1) (2)

    16,753    312,443

Omnicare Inc.

    46,448    1,313,085

Onyx Pharmaceuticals Inc. (2)

    15,221    519,493

OSI Pharmaceuticals Inc. (1) (2)

    17,764    1,067,616

Par Pharmaceutical Companies Inc. (1) (2)

    15,239    573,596

Perrigo Co.

    27,412    456,684

Pfizer Inc.

    3,413,069    109,081,685

Pharmacopeia Drug Discovery (2)

    5,415    29,945

Schering-Plough Corp.

    658,518    12,814,760

Sepracor Inc. (1) (2)

    38,327    1,761,892

Taro Pharmaceutical Industries Ltd. (1) (2)

    12,114    270,506

Trimeris Inc. (1) (2)

    7,215    82,756

Tularik Inc. (2)

    23,899    596,041

United Therapeutics Inc. (1) (2)

    9,521    235,740

Valeant Pharmaceuticals International (1)

    37,321    653,491

Vicuron Pharmaceuticals Inc. (1) (2)

    24,230    243,754

Watson Pharmaceuticals Inc. (2)

    48,720    1,228,231

Wyeth

    596,440    21,113,976
         
          322,841,329

TOTAL COMMON STOCKS
(Cost: $699,767,076)

         671,393,981
         

Security

    Shares or Principal
    Value

SHORT-TERM INVESTMENTS—6.95%

          

MONEY MARKET FUNDS—1.76%

          

Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares (3) (5)

    7,452,726    7,452,726

Barclays Global Investors Funds Prime Money Market Fund, Institutional Shares (3) (5)

    3,923,353    3,923,353

BlackRock Temp Cash Money Market Fund (3)

    180,052    180,052

Short-Term Investment Co. - Prime Money Market Portfolio (3)

    306,863    306,863
         
          11,862,994

FLOATING RATE NOTES—1.68%

          

Beta Finance Inc.

          

1.30%, 05/04/05 (3) (4)

    214,001    213,969

1.31%, 10/12/04 (3) (4)

    178,334    178,331

1.34%, 09/15/04 (3) (4)

    356,668    356,664

1.42%, 03/15/05 (3) (4)

    178,334    178,423

1.48%, 08/23/04 (3) (4)

    178,334    178,343

Canadian Imperial Bank of Commerce

          

1.24%, 10/07/04 (3)

    267,501    267,494

1.38%, 11/22/04 (3)

    89,167    89,169

1.40%, 10/29/04 (3)

    356,668    356,666

CC USA Inc.

          

1.30%, 05/04/05 (3) (4)

    356,668    356,615

1.61%, 07/29/05 (3) (4)

    356,668    356,562

Depfa Bank PLC

          

1.27%, 06/15/05 (3)

    356,668    356,668

Dorada Finance Inc.

          

1.61%, 07/29/05 (3) (4)

    296,035    295,947

Five Finance Inc.

          

1.42%, 04/29/05 (3) (4)

    285,335    285,314

HBOS Treasury Services PLC

          

1.24%, 04/01/05 (3)

    228,268    228,253

1.58%, 04/22/05 (3)

    356,668    356,668

K2 USA LLC

          

1.34%, 08/16/04 (3) (4)

    89,167    89,167

1.41%, 09/27/04 (3) (4)

    385,202    385,193

1.49%, 06/10/05 (3) (4)

    356,668    356,631

1.61%, 07/25/05 (3) (4)

    178,334    178,299

Links Finance LLC

          

1.33%, 04/15/05 (3)

    356,668    356,618

1.68%, 04/25/05 (3)

    356,668    356,838

Nationwide Building Society

          

1.59%, 07/28/05 (3) (4)

    356,668    356,668

1.63%, 12/09/04 (3)

    296,035    294,306

Northern Rock PLC

          

1.56%, 01/13/05 (3) (4)

    338,835    338,835

Permanent Financing PLC

          

1.31%, 03/10/05 (3)

    356,668    356,668

1.32%, 12/10/04 (3)

    178,334    178,334

1.34%, 06/10/05 (3)

    160,501    160,501

Sigma Finance Inc.

          

1.35%, 11/15/04 (3)

    356,668    356,661

1.52%, 10/07/04 (3)

    356,668    356,656

Tango Finance Corp.

          

1.20%, 05/17/05 (3) (4)

    296,035    296,023

1.23%, 02/25/05 (3) (4)

    199,734    199,712

1.32%, 04/07/05 (3) (4)

    130,897    130,889

1.34%, 01/18/05 (3) (4)

    156,934    156,927

1.42%, 07/25/05 (3) (4)

    356,668    356,634

WhistleJacket Capital LLC

          

1.26%, 10/20/04 (3) (4)

    88,347    88,102

1.34%, 09/15/04 (3) (4)

    178,334    178,330

1.38%, 07/15/05 (3) (4)

    267,501    267,450

1.48%, 06/15/05 (3) (4)

    178,334    178,299

White Pine Finance LLC

          

1.21%, 05/20/05 (3) (4)

    160,501    160,488

1.33%, 04/15/05 (3) (4)

    267,501    267,464

1.33%, 07/05/05 (3) (4)

    178,334    178,298

1.34%, 11/15/04 (3) (4)

    214,001    214,001

1.35%, 06/15/05 (3) (4)

    146,234    146,234

1.40%, 08/26/04 (3) (4)

    178,334    178,332

1.55%, 07/11/05 (3) (4)

    89,167    89,158
         
          11,262,802

COMMERCIAL PAPER—1.26%

          

Alpine Securitization Corp.

          

1.31%, 08/12/04 (3)

    178,334    178,269

Amsterdam Funding Corp.

          

1.30%, 08/13/04 (3)

    267,501    267,395

1.33%, 08/16/04 (3)

    356,668    356,484

1.35%, 08/20/04 (3)

    107,001    106,928

1.37%, 08/24/04 (3)

    124,834    124,729

Barton Capital Corp.

          

1.29%, 08/10/04 (3)

    178,334    178,283

1.30%, 08/13/04 (3)

    146,598    146,540

1.35%, 08/18/04 (3)

    89,167    89,114

Blue Ridge Asset Funding Corp.

          

1.29%, 08/06/04 (3)

    178,334    178,309

Corporate Asset Funding

          

1.42%, 09/03/04 (3)

    107,001    106,866

CRC Funding LLC

          

1.42%, 09/03/04 (3)

    178,334    178,109

Edison Asset Securitization

          

1.07%, 09/21/04 (3)

    178,334    178,069

1.45%, 11/09/04 (3)

    356,668    355,246

1.59%, 12/02/04 (3)

    356,668    354,747

Falcon Asset Securitization Corp.

          

1.29%, 08/09/04 (3)

    338,835    338,750

1.30%, 08/03/04 (3)

    178,334    178,328

1.34%, 08/19/04 (3)

    178,334    178,221

1.37%, 08/24/04 (3)

    142,667    142,548

Ford Credit Auto Receivables

          

1.85%, 01/14/05 (3)

    178,334    176,822

GIRO Funding US Corp.

          

1.55%, 10/15/04 (3)

    233,885    233,140

Grampian Funding LLC

          

1.26%, 10/22/04 (3)

    356,668    355,661

1.44%, 10/27/04 (3)

    356,668    355,441

1.59%, 11/30/04 (3)

    178,334    177,389

Jupiter Securitization Corp.

          

1.30%, 08/12/04 (3)

    178,334    178,270

1.37%, 08/20/04 (3)

    238,615    238,451

Park Avenue Receivables Corp.

          

1.35%, 08/19/04 (3)

    178,334    178,221

Preferred Receivables Funding Corp.

          

1.29%, 08/05/04 (3)

    164,738    164,720

1.36%, 08/23/04 (3)

    178,334    178,193

Receivables Capital Corp.

          

1.30%, 08/12/04 (3)

    124,834    124,789

1.34%, 08/16/04 (3)

    21,329    21,318

1.35%, 08/18/04 (3)

    160,501    160,405

1.35%, 08/19/04 (3)

    60,634    60,595

Scaldis Capital LLC

          

1.34%, 08/16/04 (3)

    356,668    356,483

1.37%, 08/20/04 (3)

    53,500    53,464

1.40%, 08/25/04 (3)

    445,835    445,437

Sydney Capital Corp.

          

1.25%, 10/22/04 (3)

    118,699    118,365

1.31%, 08/12/04 (3)

    142,667    142,615

Thames Asset Global Securitization No. 1 Inc.

          

1.30%, 08/12/04 (3)

    188,228    188,160

1.34%, 08/16/04 (3)

    99,867    99,816

1.36%, 08/20/04 (3)

    267,501    267,319

1.37%, 08/19/04 (3)

    99,628    99,564

1.37%, 08/20/04 (3)

    46,367    46,335

Windmill Funding Corp.

          

1.29%, 08/06/04 (3)

    445,835    445,772
         
          8,503,680

TIME DEPOSITS—1.11%

          

Abbey National Treasury Services PLC

          

1.25%, 01/06/05 (3)

    356,668    356,668

1.33%, 02/10/05 (3)

    178,334    178,320

1.39%, 02/02/05 (3)

    178,334    178,321

1.39%, 04/08/05 (3)

    249,668    249,642

1.40%, 10/25/04 (3)

    356,668    356,651

Bank of New York

          

1.39%, 11/01/04 (3)

    356,668    356,659

1.60%, 12/03/04 (3)

    89,167    89,152

Bank of Nova Scotia

          

1.13%, 10/06/04 (3)

    356,668    356,668

1.24%, 10/07/04 (3)

    267,501    267,496

1.42%, 10/29/04 (3)

    267,501    267,506

National City Bank (Cleveland, Ohio)

          

1.25%, 01/06/05 (3)

    356,668    356,676

1.35%, 06/10/05 (3)

    178,334    178,382

1.36%, 06/23/05 (3)

    356,668    356,574

Norddeutsche Landesbank

          

1.59%, 07/27/05 (3)

    356,668    356,545

Nordea Bank PLC

          

2.11%, 06/07/05 (3)

    356,668    356,608

Prudential Funding LLC

          

1.60%, 12/01/04 (3)

    178,334    177,375

Toronto-Dominion Bank

          

1.22%, 03/23/05 (3)

    624,170    624,100

1.34%, 02/10/05 (3)

    142,667    142,656

1.41%, 11/01/04 (3)

    267,501    267,495

1.77%, 05/10/05 (3)

    178,334    178,321

1.90%, 05/11/05 (3)

    178,334    178,320

UBS Finance (Delaware)

          

1.10%, 09/08/04 (3)

    356,668    356,265

1.11%, 12/17/04 (3)

    535,003    532,743

1.13%, 08/09/04 (3)

    356,668    356,590

1.14%, 09/29/04 (3)

    356,668    356,016
         
          7,431,749

REPURCHASE AGREEMENTS—0.67%

          

Banc of America Securities LLC

          

1.34%, 08/02/04 (3) (6)

    927,338    927,338

Bank of America, N.A.

          

1.37%, 08/02/04 (3) (6)

    1,783,342    1,783,342

Goldman Sachs & Co.

          

1.37%, 08/02/04 (3) (6)

    1,783,342    1,783,342
         
          4,494,022

U.S. GOVERNMENT AGENCY NOTES—0.28%

          

Federal Home Loan Mortgage Corp.

          

1.28%, 08/19/04 (3)

    142,667    142,581

1.63%, 04/15/05 (3)

    249,668    250,227

1.80%, 01/18/05 (3)

    165,851    164,449

1.80%, 01/19/05 (3)

    178,334    176,818

2.06%, 05/31/05 (3)

    177,810    174,737

Federal National Mortgage Association

          

1.28%, 08/20/04 (3)

    463,669    463,372

2.33%, 07/22/05 (3)

    535,003    522,771
         
          1,894,955

MEDIUM-TERM NOTES—0.19%

          

CC USA Inc.

          

1.29%, 04/15/05 (3) (4)

    356,668    356,643

1.51%, 02/15/05 (3) (4)

    231,834    232,030

Dorada Finance Inc.

          

1.24%, 08/09/04 (3) (4)

    89,167    89,167

1.48%, 01/18/05 (3) (4)

    267,501    267,495

K2 USA LLC

          

1.46%, 01/12/05 (3) (4)

    178,334    178,326

Sigma Finance Inc.

          

1.24%, 08/06/04 (3)

    89,167    89,167

WhistleJacket Capital LLC

          

1.32%, 02/04/05 (3) (4)

    89,167    89,158
         
          1,301,986

TOTAL SHORT-TERM INVESTMENTS
(Cost: $46,752,188)

           46,752,188  
         

TOTAL INVESTMENTS IN SECURITIES — 106.84%
(Cost: $746,519,264) (7)

           718,146,169  

Other Assets, Less Liabilities — (6.84%)

           (46,006,957 )
         

NET ASSETS — 100.00%

         $ 672,139,212  
         
(1) All or a portion of this security represents a security on loan.
(2) Non-income earning security.
(3) All or a portion of this security represents an investment of securities lending collateral.
(4) Security exempt from registration pursuant to Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.
(5) Issuer is an affiliate of the Fund’s investment adviser.
(6) Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 3.61% to 7.00% and maturity dates ranging from 7/1/13 to 7/1/34.
(7) The cost of investments for federal income tax purposes was $755,970,061. Net unrealized depreciation aggregated $37,823,892, of which $35,867,980 represented gross unrealized appreciation on securities and $73,691,872 represented gross unrealized depreciation on securities.

Schedule of Investments (Unaudited)

iSHARES® DOW JONES U.S. INDUSTRIAL SECTOR INDEX FUND

July 31, 2004

 

Security

    Shares
    Value

COMMON STOCKS—99.99%

            

ADVERTISING—0.17%

            

Getty Images Inc. (1) (2)

    6,632    $ 362,240
         
            362,240

AEROSPACE & DEFENSE—11.97%

            

AAR Corp. (1) (2)

    4,915      51,116

Alliant Techsystems Inc. (1) (2)

    6,029      379,586

Boeing Co. (The)

    112,730      5,721,047

Curtiss-Wright Corp. Class B

    99      5,089

Engineered Support Systems Inc.

    2,673      149,875

Esterline Technologies Corp. (1) (2)

    3,222      101,139

General Dynamics Corp.

    26,334      2,602,326

Goodrich (B.F.) Co.

    14,444      466,975

L-3 Communications Holdings Inc.

    13,927      851,636

Lockheed Martin Corp.

    54,838      2,905,866

Northrop Grumman Corp.

    50,314      2,646,516

Raytheon Co.

    62,236      2,088,018

Rockwell Collins Inc.

    16,271      556,794

Titan Corp. (The) (1)

    13,276      158,914

United Technologies Corp.

    76,005      7,106,467
         
            25,791,364

AUTO MANUFACTURERS—0.99%

            

Navistar International Corp. (1)

    9,356      336,348

Oshkosh Truck Corp. (2)

    3,897      206,424

PACCAR Inc.

    25,151      1,508,054

Wabash National Corp. (1) (2)

    3,086      89,124
         
            2,139,950

BIOTECHNOLOGY—0.19%

            

Millipore Corp. (1)

    7,637      402,394
         
            402,394

BUILDING MATERIALS—2.31%

            

American Standard Companies Inc. (1)

    28,103      1,064,823

Eagle Materials Inc. Class B

    442      28,730

ElkCorp. (2)

    2,223      48,528

Florida Rock Industries Inc.

    2,432      104,406

Lafarge North America Inc.

    4,495      188,296

Martin Marietta Materials Inc. (2)

    7,657      334,994

Masco Corp.

    70,439      2,130,075

Texas Industries Inc. (2)

    3,150      134,914

USG Corp. (1) (2)

    2,186      37,687

Vulcan Materials Co.

    14,213      676,823

York International Corp. (2)

    6,212      221,023
         
            4,970,299

CHEMICALS—0.51%

          

Ashland Inc.

    5,246    274,208

Sherwin-Williams Co. (The)

    20,418    824,479
         
          1,098,687

COMMERCIAL SERVICES—4.94%

          

Accenture Ltd. (1)

    57,434    1,414,599

Arbitron Inc. (1) (2)

    4,499    154,901

Banta Corp.

    3,750    148,912

Bowne & Co. Inc.

    4,851    72,231

ChoicePoint Inc. (1) (2)

    13,162    552,804

Convergys Corp. (1)

    25,771    341,208

Corporate Executive Board Co. (The)

    5,877    333,226

Corrections Corp. of America (1)

    4,113    155,060

Deluxe Corp.

    10,013    441,073

Donnelley (R.R.) & Sons Co.

    24,420    775,091

Equifax Inc.

    22,770    549,212

Forrester Research Inc. (1)

    2,372    42,340

FTI Consulting Inc. (1) (2)

    1,615    27,875

Hewitt Associates Inc. Class A (1)

    1,698    45,337

Hudson Highland Group Inc. (1) (2)

    1,476    44,782

Iron Mountain Inc. (1) (2)

    19,528    630,169

Manpower Inc. (2)

    11,887    517,679

Moody’s Corp.

    20,578    1,401,362

MPS Group Inc. (1)

    15,397    138,265

Navigant Consulting Inc. (1) (2)

    5,832    122,180

NCO Group Inc. (1) (2)

    3,658    91,340

Paychex Inc.

    51,758    1,589,488

PRG-Schultz International Inc. (1) (2)

    6,372    32,433

Quanta Services Inc. (1) (2)

    8,233    51,703

Robert Half International Inc.

    27,371    761,461

Spherion Corp. (1) (2)

    8,808    76,189

TeleTech Holdings Inc. (1) (2)

    6,218    54,407

Viad Corp.

    3,468    82,920
         
          10,648,247

COMPUTERS—0.57%

          

Agilysys Inc.

    4,923    73,353

Ceridian Corp. (1)

    22,944    412,992

Diebold Inc.

    11,294    520,653

National Instruments Corp.

    7,763    225,515
         
          1,232,513

DISTRIBUTION & WHOLESALE—1.06%

          

CDW Corp.

    8,328    535,490

Grainger (W.W.) Inc.

    11,826    626,187

Hughes Supply Inc.

    3,400    207,128

Ingram Micro Inc. Class A (1)

    15,820    225,435

SCP Pool Corp. (2)

    4,151    171,146

Tech Data Corp. (1)

    8,320    311,667

United Stationers Inc. (1) (2)

    5,191    204,629
         
          2,281,682

ELECTRIC—0.15%

          

ALLETE Inc.

    11,742    325,488
         
          325,488

ELECTRICAL COMPONENTS & EQUIPMENT—2.72%

          

American Power Conversion Corp.

    27,776    419,418

AMETEK Inc. (2)

    10,200    314,568

Artesyn Technologies Inc. (1) (2)

    6,936    51,743

C&D Technologies Inc.

    4,093    64,260

Emerson Electric Co.

    62,271    3,779,850

GrafTech International Ltd. (1) (2)

    10,530    116,146

Hubbell Inc. Class B (2)

    7,728    349,306

Littelfuse Inc. (1) (2)

    3,473    134,752

Molex Inc.

    8,575    248,332

Molex Inc. Class A

    11,480    284,934

Power-One Inc. (1) (2)

    9,947    87,235
         
          5,850,544

ELECTRONICS—5.55%

          

Agilent Technologies Inc. (1)

    66,180    1,575,746

Amphenol Corp. Class A (1)

    7,641    240,157

Arrow Electronics Inc. (1)

    15,565    368,268

Avnet Inc. (1)

    18,709    363,329

AVX Corp. (2)

    8,487    105,833

Benchmark Electronics Inc. (1)

    5,595    159,905

Checkpoint Systems Inc. (1) (2)

    4,918    84,639

Coherent Inc. (1) (2)

    4,348    114,418

CTS Corp. (2)

    5,184    59,460

Dionex Corp. (1) (2)

    3,313    156,340

Electro Scientific Industries Inc. (1) (2)

    4,263    109,772

Flextronics International Ltd. (1)

    72,556    912,029

Flir Systems Inc. (1) (2)

    4,056    258,083

Garmin Ltd. (2)

    7,150    268,125

Jabil Circuit Inc. (1)

    25,314    550,579

KEMET Corp. (1) (2)

    13,850    139,746

Methode Electronics Inc. (2)

    4,323    56,329

Mettler Toledo International Inc. (1)

    940    39,198

Orbotech Ltd. (1)

    4,858    82,678

Park Electrochemical Corp. (2)

    2,644    60,759

Parker Hannifin Corp.

    18,357    1,053,325

PerkinElmer Inc.

    20,072    352,866

Photon Dynamics Inc. (1)

    2,647    72,766

Plexus Corp. (1) (2)

    6,723    75,365

Sanmina-SCI Corp. (1)

    82,207    603,399

Solectron Corp. (1)

    129,276    711,018

Symbol Technologies Inc.

    35,160    460,244

Technitrol Inc. (1) (2)

    5,871    108,613

Tektronix Inc.

    14,442    439,037

Thermo Electron Corp. (1)

    27,021    694,980

Thomas & Betts Corp.

    9,180    241,434

Varian Inc. (1)

    5,111    193,707

Vishay Intertechnology Inc. (1) (2)

    22,683    351,586

Waters Corp. (1)

    20,483    898,794
         
          11,962,527

ENERGY - ALTERNATE SOURCES—0.04%

          

FuelCell Energy Inc. (1) (2)

    9,740    96,816
         
          96,816

ENGINEERING & CONSTRUCTION—0.65%

          

Dycom Industries Inc. (1) (2)

    7,641    205,849

EMCOR Group Inc. (1) (2)

    2,284    98,829

Fluor Corp. (2)

    12,508    569,739

Granite Construction Inc. (2)

    5,276    93,860

Insituform Technologies Inc. Class A (1) (2)

    3,984    71,592

Jacobs Engineering Group Inc. (1)

    7,476    298,890

Shaw Group Inc. (The) (1) (2)

    6,113    60,641
         
          1,399,400

ENVIRONMENTAL CONTROL—1.90%

          

Allied Waste Industries Inc. (1)

    31,786    293,703

Ionics Inc. (1) (2)

    2,392    64,680

Republic Services Inc.

    25,933    741,684

Stericycle Inc. (1) (2)

    5,606    274,694

Tetra Tech Inc. (1) (2)

    8,334    134,511

Waste Connections Inc. (1) (2)

    5,760    166,234

Waste Management Inc.

    86,134    2,423,811
         
          4,099,317

FOREST PRODUCTS & PAPER—0.25%

          

Temple-Inland Inc.

    7,835    534,739
         
          534,739

HAND & MACHINE TOOLS—0.13%

          

Kennametal Inc.

    4,766    209,704

Regal-Beloit Corp. (2)

    3,823    80,283
         
          289,987

HEALTH CARE-PRODUCTS—0.01%

          

Bioveris Corp. (1)

    2,271    17,032
         
          17,032

HOME BUILDERS—0.05%

          

Monaco Coach Corp.

    4,074    98,917
         
          98,917

HOUSEWARES—0.08%

          

Toro Co. (2)

    2,519    164,994
         
          164,994

INTERNET—0.29%

          

CheckFree Corp. (1) (2)

    10,465    314,369

Monster Worldwide Inc. (1) (2)

    14,061    310,607
         
          624,976

LEISURE TIME—0.27%

          

Sabre Holdings Corp.

    22,708    579,735
         
          579,735

MACHINERY—4.56%

          

AGCO Corp. (1) (2)

    11,802    246,898

Albany International Corp. Class A (2)

    4,005    119,830

Astec Industries Inc. (1)

    1,104    18,801

Briggs & Stratton Corp.

    3,306    276,051

Caterpillar Inc.

    51,544    3,787,969

Cognex Corp. (2)

    6,110    183,789

Cummins Inc. (2)

    5,258    365,063

Deere & Co.

    37,301    2,342,876

Flowserve Corp. (1) (2)

    8,681    207,910

Graco Inc.

    10,725    337,623

Joy Global Inc.

    4,847    143,907

Manitowoc Co. Inc. (The)

    3,750    127,162

Nordson Corp. (2)

    4,092    171,332

Presstek Inc. (1) (2)

    3,037    25,936

Rockwell Automation Inc.

    27,718    1,036,930

Stewart & Stevenson Services Inc.

    4,152    65,394

Terex Corp. (1) (2)

    7,058    274,627

Unova Inc. (1) (2)

    5,157    87,205
         
          9,819,303

MANUFACTURING—41.75%

          

Actuant Corp. Class A (1)

    1,493    54,435

Acuity Brands Inc.

    6,704    159,890

AptarGroup Inc.

    5,449    230,547

Brink’s Co. (The) (2)

    8,582    277,628

Carlisle Companies Inc.

    4,348    276,055

Cooper Industries Ltd.

    14,602    830,416

Crane Co.

    8,258    229,738

Danaher Corp.

    34,903    1,767,837

Donaldson Co. Inc. (2)

    12,574    334,846

Dover Corp.

    32,027    1,270,831

Eaton Corp.

    21,778    1,407,730

General Electric Co.

    1,518,213    50,480,582

Harsco Corp.

    6,302    282,834

Honeywell International Inc.

    117,457    4,417,558

Illinois Tool Works Inc.

    40,434    3,660,086

Ingersoll-Rand Co. Class A

    26,352    1,810,119

ITT Industries Inc.

    14,180    1,133,691

Jacuzzi Brands Inc. (1)

    11,904    91,899

Pall Corp.

    19,367    448,733

Pentair Inc.

    15,326    480,010

Roper Industries Inc. (2)

    4,834    270,704

SPX Corp. (2)

    12,646    517,854

Teleflex Inc.

    5,429    241,319

Textron Inc.

    20,171    1,236,482

3M Co.

    105,544    8,692,604

Trinity Industries Inc. (2)

    6,962    209,347

Tyco International Ltd.

    295,062    9,146,922
         
          89,960,697

METAL FABRICATE & HARDWARE—0.45%

          

Kaydon Corp. (2)

    4,600    133,998

Mueller Industries Inc. (2)

    5,186    197,690

Precision Castparts Corp.

    7,736    435,769

Timken Co. (The) (2)

    8,333    206,992
         
          974,449

MINING—0.14%

          

Owens-Illinois Inc. (1) (2)

    21,066    309,670
         
          309,670

PACKAGING & CONTAINERS—1.75%

          

Ball Corp.

    8,939    645,217

Bemis Co. Inc.

    16,658    441,104

Crown Holdings Inc. (1)

    19,986    202,658

Packaging Corp. of America

    16,500    385,440

Pactiv Corp. (1)

    24,813    585,091

Sealed Air Corp. (1)

    13,096    621,274

Smurfit-Stone Container Corp.

    26,852    499,716

Sonoco Products Co.

    14,949    387,329
         
          3,767,829

RETAIL—0.26%

          

Copart Inc. (1)

    11,465    255,096

Insight Enterprises Inc. (1)

    7,077    113,515

MSC Industrial Direct Co. Inc. Class A

    5,949    186,204
         
          554,815

SEMICONDUCTORS—0.19%

          

Helix Technology Corp.

    4,076    58,857

Integrated Circuit Systems Inc. (1)

    8,850    211,692

Three-Five Systems Inc. (1)

    14,381    50,621

Veeco Instruments Inc. (1) (2)

    3,824    86,996
         
          408,166

SOFTWARE—6.12%

          

Acxiom Corp.

    13,672    300,784

Automatic Data Processing Inc.

    89,114    3,741,006

Certegy Inc. (2)

    10,102    382,967

CSG Systems International Inc. (1) (2)

    8,002    131,233

Dun & Bradstreet Corp. (1)

    10,705    600,979

eFunds Corp. (1) (2)

    7,552    123,551

Fair Isaac Corp.

    7,413    211,864

First Data Corp.

    128,334    5,724,980

Fiserv Inc. (1)

    29,921    1,025,093

Global Payments Inc. (2)

    4,091    186,754

IMS Health Inc.

    27,026    655,110

NDCHealth Corp. (2)

    5,366    112,740
         
          13,197,061

TELECOMMUNICATIONS—0.13%

          

Aeroflex Inc. (1)

    9,511    105,477

Anaren Inc. (1)

    2,707    32,457

Audiovox Corp. Class A (1)

    2,645    45,811

Newport Corp. (1)

    6,031    86,485
         
          270,230

TEXTILES—0.43%

          

Cintas Corp.

    19,389    813,562

G&K Services Inc. Class A (2)

    2,968    114,327
         
          927,889

TRANSPORTATION—9.35%

          

Alexander & Baldwin Inc.

    6,024    198,069

Arkansas Best Corp. (2)

    2,198    76,864

Burlington Northern Santa Fe Corp.

    56,409    2,001,391

CH Robinson Worldwide Inc. (2)

    12,257    535,999

CNF Inc.

    7,661    316,093

CSX Corp.

    33,045    1,034,308

EGL Inc. (1)

    5,872    149,207

Expeditors International Washington Inc. (2)

    16,247    754,023

FedEx Corp.

    43,064    3,526,080

Hunt (J.B.) Transport Services Inc.

    6,996    268,716

Kansas City Southern Industries Inc. (1) (2)

    8,925    130,483

Landstar System Inc. (1)

    4,928    245,464

Norfolk Southern Corp.

    59,771    1,595,288

Overseas Shipholding Group Inc.

    3,813    171,242

Ryder System Inc.

    9,092    390,047

SCS Transportation Inc. (1) (2)

    5,076    130,707

Swift Transportation Co. Inc. (1)

    9,422    188,204

Union Pacific Corp.

    37,411    2,107,736

United Parcel Service Inc. Class B

    79,572    5,726,001

USF Corp.

    4,160    147,680

Werner Enterprises Inc.

    9,063    180,626

Yellow Roadway Corp. (1)

    6,369    277,115
         
          20,151,343

TRUCKING & LEASING—0.06%

          

GATX Corp. (2)

    5,430    138,356
         
          138,356

TOTAL COMMON STOCKS
(Cost: $211,166,929)

         215,451,656
         

Security

    Shares or Principal
    Value

SHORT-TERM INVESTMENTS—5.14%

          

MONEY MARKET FUNDS—1.31%

          

Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares (3) (5)

    1,788,021    1,788,021

Barclays Global Investors Funds Prime Money Market Fund, Institutional Shares (3) (5)

    926,609    926,609

BlackRock Temp Cash Money Market Fund (3)

    42,524    42,524

Short-Term Investment Co. - Prime Money Market Portfolio (3)

    72,474    72,474
         
          2,829,628

FLOATING RATE NOTES—1.24%

          

Beta Finance Inc.

          

1.30%, 05/04/05 (3) (4)

    50,542    50,535

1.31%, 10/12/04 (3) (4)

    42,119    42,118

1.34%, 09/15/04 (3) (4)

    84,237    84,236

1.42%, 03/15/05 (3) (4)

    42,119    42,139

1.48%, 08/23/04 (3) (4)

    42,119    42,121

Canadian Imperial Bank of Commerce

          

1.24%, 10/07/04 (3)

    63,178    63,176

1.38%, 11/22/04 (3)

    21,059    21,060

1.40%, 10/29/04 (3)

    84,237    84,237

CC USA Inc.

          

1.30%, 05/04/05 (3) (4)

    84,237    84,224

1.61%, 07/29/05 (3) (4)

    84,237    84,213

Depfa Bank PLC

          

1.27%, 06/15/05 (3)

    84,237    84,237

Dorada Finance Inc.

          

1.61%, 07/29/05 (3) (4)

    69,917    69,896

Five Finance Inc.

          

1.42%, 04/29/05 (3) (4)

    67,390    67,385

HBOS Treasury Services PLC

          

1.24%, 04/01/05 (3)

    53,912    53,908

1.58%, 04/22/05 (3)

    84,237    84,237

K2 USA LLC

          

1.34%, 08/16/04 (3) (4)

    21,059    21,059

1.41%, 09/27/04 (3) (4)

    90,976    90,974

1.49%, 06/10/05 (3) (4)

    84,237    84,228

1.61%, 07/25/05 (3) (4)

    42,119    42,110

Links Finance LLC

          

1.33%, 04/15/05 (3)

    84,237    84,225

1.68%, 04/25/05 (3)

    84,237    84,277

Nationwide Building Society

          

1.59%, 07/28/05 (3) (4)

    84,237    84,237

1.63%, 12/09/04 (3)

    69,917    69,508

Northern Rock PLC

          

1.56%, 01/13/05 (3) (4)

    80,025    80,025

Permanent Financing PLC

          

1.31%, 03/10/05 (3)

    84,237    84,237

1.32%, 12/10/04 (3)

    42,119    42,119

1.34%, 06/10/05 (3)

    37,907    37,907

Sigma Finance Inc.

          

1.35%, 11/15/04 (3)

    84,237    84,235

1.52%, 10/07/04 (3)

    84,237    84,234

Tango Finance Corp.

          

1.20%, 05/17/05 (3) (4)

    69,917    69,914

1.23%, 02/25/05 (3) (4)

    47,173    47,167

1.32%, 04/07/05 (3) (4)

    30,915    30,913

1.34%, 01/18/05 (3) (4)

    37,064    37,063

1.42%, 07/25/05 (3) (4)

    84,237    84,229

WhistleJacket Capital LLC

          

1.26%, 10/20/04 (3) (4)

    20,866    20,808

1.34%, 09/15/04 (3) (4)

    42,119    42,118

1.38%, 07/15/05 (3) (4)

    63,178    63,166

1.48%, 06/15/05 (3) (4)

    42,119    42,110

White Pine Finance LLC

          

1.21%, 05/20/05 (3) (4)

    37,907    37,904

1.33%, 04/15/05 (3) (4)

    63,178    63,169

1.33%, 07/05/05 (3) (4)

    42,119    42,110

1.34%, 11/15/04 (3) (4)

    50,542    50,543

1.35%, 06/15/05 (3) (4)

    34,537    34,537

1.40%, 08/26/04 (3) (4)

    42,119    42,118

1.55%, 07/11/05 (3) (4)

    21,059    21,057
         
          2,660,023

COMMERCIAL PAPER—0.93%

          

Alpine Securitization Corp.

          

1.31%, 08/12/04 (3)

    42,119    42,103

Amsterdam Funding Corp.

          

1.30%, 08/13/04 (3)

    63,178    63,153

1.33%, 08/16/04 (3)

    84,237    84,194

1.35%, 08/20/04 (3)

    25,271    25,254

1.37%, 08/24/04 (3)

    29,483    29,458

Barton Capital Corp.

          

1.29%, 08/10/04 (3)

    42,119    42,107

1.30%, 08/13/04 (3)

    34,623    34,610

1.35%, 08/18/04 (3)

    21,059    21,047

Blue Ridge Asset Funding Corp.

          

1.29%, 08/06/04 (3)

    42,119    42,113

Corporate Asset Funding

          

1.42%, 09/03/04 (3)

    25,271    25,239

CRC Funding LLC

          

1.42%, 09/03/04 (3)

    42,119    42,065

Edison Asset Securitization

          

1.07%, 09/21/04 (3)

    42,119    42,056

1.45%, 11/09/04 (3)

    84,237    83,901

1.59%, 12/02/04 (3)

    84,237    83,783

Falcon Asset Securitization Corp.

          

1.29%, 08/09/04 (3)

    80,025    80,005

1.30%, 08/03/04 (3)

    42,119    42,117

1.34%, 08/19/04 (3)

    42,119    42,092

1.37%, 08/24/04 (3)

    33,695    33,667

Ford Credit Auto Receivables

          

1.85%, 01/14/05 (3)

    42,119    41,761

GIRO Funding US Corp.

          

1.55%, 10/15/04 (3)

    55,239    55,063

Grampian Funding LLC

          

1.26%, 10/22/04 (3)

    84,237    84,000

1.44%, 10/27/04 (3)

    84,237    83,947

1.59%, 11/30/04 (3)

    42,119    41,895

Jupiter Securitization Corp.

          

1.30%, 08/12/04 (3)

    42,119    42,103

1.37%, 08/20/04 (3)

    56,356    56,317

Park Avenue Receivables Corp.

          

1.35%, 08/19/04 (3)

    42,119    42,092

Preferred Receivables Funding Corp.

          

1.29%, 08/05/04 (3)

    38,907    38,903

1.36%, 08/23/04 (3)

    42,119    42,085

Receivables Capital Corp.

          

1.30%, 08/12/04 (3)

    29,483    29,472

1.34%, 08/16/04 (3)

    5,037    5,035

1.35%, 08/18/04 (3)

    37,907    37,884

1.35%, 08/19/04 (3)

    14,320    14,311

Scaldis Capital LLC

          

1.34%, 08/16/04 (3)

    84,237    84,193

1.37%, 08/20/04 (3)

    12,636    12,627

1.40%, 08/25/04 (3)

    105,296    105,202

Sydney Capital Corp.

          

1.25%, 10/22/04 (3)

    28,034    27,955

1.31%, 08/12/04 (3)

    33,695    33,683

Thames Asset Global Securitization No. 1 Inc.

          

1.30%, 08/12/04 (3)

    44,455    44,439

1.34%, 08/16/04 (3)

    23,586    23,574

1.36%, 08/20/04 (3)

    63,178    63,135

1.37%, 08/19/04 (3)

    23,530    23,515

1.37%, 08/20/04 (3)

    10,951    10,943

Windmill Funding Corp.

          

1.29%, 08/06/04 (3)

    105,296    105,281
         
          2,008,379

TIME DEPOSITS—0.82%

          

Abbey National Treasury Services PLC

          

1.25%, 01/06/05 (3)

    84,237    84,237

1.33%, 02/10/05 (3)

    42,119    42,115

1.39%, 02/02/05 (3)

    42,119    42,116

1.39%, 04/08/05 (3)

    58,966    58,960

1.40%, 10/25/04 (3)

    84,237    84,234

Bank of New York

          

1.39%, 11/01/04 (3)

    84,237    84,235

1.60%, 12/03/04 (3)

    21,059    21,056

Bank of Nova Scotia

          

1.13%, 10/06/04 (3)

    84,237    84,237

1.24%, 10/07/04 (3)

    63,178    63,177

1.42%, 10/29/04 (3)

    63,178    63,179

National City Bank (Cleveland, Ohio)

          

1.25%, 01/06/05 (3)

    84,237    84,239

1.35%, 06/10/05 (3)

    42,119    42,130

1.36%, 06/23/05 (3)

    84,237    84,215

Norddeutsche Landesbank

          

1.59%, 07/27/05 (3)

    84,237    84,209

Nordea Bank PLC

          

2.11%, 06/07/05 (3)

    84,237    84,223

Prudential Funding LLC

              

1.60%, 12/01/04 (3)

    42,119      41,892  

Toronto-Dominion Bank

              

1.22%, 03/23/05 (3)

    147,415      147,399  

1.34%, 02/10/05 (3)

    33,695      33,693  

1.41%, 11/01/04 (3)

    63,178      63,177  

1.77%, 05/10/05 (3)

    42,119      42,115  

1.90%, 05/11/05 (3)

    42,119      42,115  

UBS Finance (Delaware)

              

1.10%, 09/08/04 (3)

    84,237      84,142  

1.11%, 12/17/04 (3)

    126,356      125,823  

1.13%, 08/09/04 (3)

    84,237      84,219  

1.14%, 09/29/04 (3)

    84,237      84,083  
         
            1,755,220  

REPURCHASE AGREEMENTS—0.49%

              

Banc of America Securities LLC

              

1.34%, 08/02/04 (3) (6)

    219,014      219,014  

Bank of America, N.A.

              

1.37%, 08/02/04 (3) (6)

    421,186      421,186  

Goldman Sachs & Co.

              

1.37%, 08/02/04 (3) (6)

    421,186      421,186  
         
            1,061,386  

U.S. GOVERNMENT AGENCY NOTES—0.21%

              

Federal Home Loan Mortgage Corp.

              

1.28%, 08/19/04 (3)

    33,695      33,675  

1.63%, 04/15/05 (3)

    58,966      59,099  

1.80%, 01/18/05 (3)

    39,170      38,839  

1.80%, 01/19/05 (3)

    42,119      41,761  

2.06%, 05/31/05 (3)

    41,995      41,269  

Federal National Mortgage Association

              

1.28%, 08/20/04 (3)

    109,508      109,438  

2.33%, 07/22/05 (3)

    126,356      123,467  
         
            447,548  

MEDIUM-TERM NOTES—0.14%

              

CC USA Inc.

              

1.29%, 04/15/05 (3) (4)

    84,237      84,231  

1.51%, 02/15/05 (3) (4)

    54,754      54,800  

Dorada Finance Inc.

              

1.24%, 08/09/04 (3) (4)

    21,059      21,059  

1.48%, 01/18/05 (3) (4)

    63,178      63,176  

K2 USA LLC

              

1.46%, 01/12/05 (3) (4)

    42,119      42,117  

Sigma Finance Inc.

              

1.24%, 08/06/04 (3)

    21,059      21,059  

WhistleJacket Capital LLC

              

1.32%, 02/04/05 (3) (4)

    21,059      21,057  
         
            307,499  

TOTAL SHORT-TERM INVESTMENTS
(Cost: $11,069,683)

           11,069,683  
         

TOTAL INVESTMENTS IN SECURITIES — 105.13%
(Cost: $222,236,612) (7)

           226,521,339  

Other Assets, Less Liabilities — (5.13%)

           (11,053,504 )
         

NET ASSETS — 100.00%

         $ 215,467,835  
         
(1) Non-income earning security.

(2) All or a portion of this security represents a security on loan.
(3) All or a portion of this security represents an investment of securities lending collateral.
(4) Security exempt from registration pursuant to Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.
(5) Issuer is an affiliate of the Fund’s investment adviser.
(6) Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 3.61% to 7.00% and maturity dates ranging from 7/1/13 to 7/1/34.
(7) The cost of investments for federal income tax purposes was $225,034,143. Net unrealized appreciation aggregated $1,487,196, of which $12,405,916 represented gross unrealized appreciation on securities and $10,918,720 represented gross unrealized depreciation on securities.

Schedule of Investments (Unaudited)

iSHARES® DOW JONES U.S. TECHNOLOGY SECTOR INDEX FUND

July 31, 2004

 

Security

    Shares
    Value

COMMON STOCKS—100.03%

            

COMMERCIAL SERVICES—0.08%

            

BearingPoint Inc. (1) (2)

    30,190    $ 249,369
         
            249,369

COMPUTERS—25.57%

            

Advanced Digital Information Corp. (1) (2)

    12,104      107,968

Affiliated Computer Services Inc. Class A (1) (2)

    23,773      1,233,819

Apple Computer Inc. (1)

    69,243      2,239,319

Brocade Communications Systems Inc. (1)

    49,903      240,532

CACI International Inc. Class A (1)

    5,635      231,655

Cadence Design Systems Inc. (1) (2)

    52,956      713,317

CIBER Inc. (1) (2)

    10,178      76,335

Cognizant Technology Solutions Corp. (1)

    24,624      678,391

Computer Sciences Corp. (1)

    36,290      1,714,702

Dell Inc. (1)

    430,892      15,283,739

DST Systems Inc. (1)

    15,048      685,587

Echelon Corp. (1) (2)

    6,324      47,114

Electronic Data Systems Corp.

    93,749      1,732,482

Electronics For Imaging Inc. (1) (2)

    10,473      210,193

EMC Corp. (1)

    467,517      5,128,661

Gateway Inc. (1)

    45,531      204,889

Henry (Jack) & Associates Inc.

    14,638      281,781

Hewlett-Packard Co.

    529,463      10,668,679

Hutchinson Technology Inc. (1) (2)

    5,081      113,154

Imation Corp. (2)

    6,879      228,039

InFocus Corp. (1)

    6,954      61,612

Intergraph Corp. (1) (2)

    6,994      184,572

International Business Machines Corp.

    325,669      28,356,000

Iomega Corp.

    10,159      44,598

Kronos Inc. (1) (2)

    5,943      261,017

Lexmark International Inc. (1)

    25,144      2,225,244

Maxtor Corp. (1) (2)

    47,718      223,320

McDATA Corp. Class A (1) (2)

    15,938      82,081

McDATA Corp. Class B (1) (2)

    4,774      23,106

Mentor Graphics Corp. (1) (2)

    13,605      160,539

Mercury Computer Systems Inc. (1) (2)

    4,195      99,883

MICROS Systems Inc. (1) (2)

    3,537      171,969

M-Systems Flash Disk Pioneers Ltd. (1) (2)

    6,107      84,881

NCR Corp. (1)

    18,248      847,255

Network Appliance Inc. (1)

    67,269      1,298,964

Perot Systems Corp. Class A (1)

    14,412      181,879

Quantum Corp. (1) (2)

    30,415      74,213

RadiSys Corp. (1) (2)

    3,426      42,517

Reynolds & Reynolds Co. (The) Class A (2)

    12,517      276,626

SanDisk Corp. (1) (2)

    31,281      760,754

Seagate Technology (2)

    29,832      342,173

Silicon Graphics Inc. (1) (2)

    47,689      72,964

Silicon Storage Technology Inc. (1) (2)

    16,116      107,010

Storage Technology Corp. (1)

    21,754      542,762

Sun Microsystems Inc. (1)

    643,624      2,542,315

SunGard Data Systems Inc. (1)

    56,155      1,308,973

Synopsys Inc. (1)

    30,061    760,243

Unisys Corp. (1)

    64,303    658,463

Western Digital Corp. (1) (2)

    40,004    280,428
         
          83,896,717

ELECTRICAL COMPONENTS & EQUIPMENT—0.07%

          

Belden CDT Inc. (1) (2)

    8,694    169,098

General Cable Corp. (1) (2)

    7,280    69,306
         
          238,404

ELECTRONICS—0.15%

          

Cymer Inc. (1) (2)

    7,154    204,891

Trimble Navigation Ltd. (1)

    9,832    273,035
         
          477,926

ENTERTAINMENT—0.05%

          

Macrovision Corp. (1)

    8,088    175,024
         
          175,024

INTERNET—4.97%

          

Agile Software Corp. (1)

    8,993    66,908

Akamai Technologies Inc. (1) (2)

    20,993    313,425

Ariba Inc. (1)

    11,288    98,088

Ask Jeeves Inc. (1) (2)

    10,901    317,001

Avocent Corp. (1)

    9,512    284,789

Check Point Software Technologies Ltd. (1) (2)

    34,840    692,968

CNET Networks Inc. (1) (2)

    25,389    231,802

Digital River Inc. (1) (2)

    5,779    162,390

E.piphany Inc. (1)

    14,544    58,176

EarthLink Inc. (1)

    28,275    279,074

Entrust Inc. (1)

    10,792    30,110

eResearch Technology Inc. (1) (2)

    9,106    226,830

F5 Networks Inc. (1)

    5,626    147,345

Internet Security Systems Inc. (1) (2)

    8,279    126,834

Interwoven Inc. (1)

    7,015    52,753

Keynote Systems Inc. (1)

    3,234    42,592

Macromedia Inc. (1)

    13,404    270,761

MatrixOne Inc. (1)

    9,207    58,557

McAfee Inc. (1)

    32,035    575,989

Openwave Systems Inc. (1) (2)

    12,254    139,328

PC-Tel Inc. (1)

    3,992    40,279

RealNetworks Inc. (1) (2)

    21,443    120,939

RSA Security Inc. (1) (2)

    11,798    219,679

S1 Corp. (1)

    13,211    109,255

SonicWALL Inc. (1)

    10,745    71,239

Symantec Corp. (1)

    60,164    2,813,269

TIBCO Software Inc. (1)

    31,542    223,002

United Online Inc. (1) (2)

    9,041    141,040

VeriSign Inc. (1)

    48,019    840,813

Verity Inc. (1)

    7,280    81,026

Vignette Corp. (1)

    56,447    80,719

WatchGuard Technologies Inc. (1)

    5,517    29,075

WebMD Corp. (1) (2)

    60,465    492,185

webMethods Inc. (1)

    10,196    48,635

Yahoo! Inc. (1)

    220,954    6,805,383
         
          16,292,258

MACHINERY—0.23%

          

Zebra Technologies Corp. Class A (1)

    9,191    759,452
         
          759,452

OFFICE & BUSINESS EQUIPMENT—1.36%

          

IKON Office Solutions Inc. (2)

    28,539    338,758

Imagistics International Inc. (1)

    3,170    103,025

Pitney Bowes Inc.

    44,625    1,883,175

Xerox Corp. (1)

    154,864    2,146,415
         
          4,471,373

PHARMACEUTICALS—0.01%

          

Accelrys Inc. (1)

    4,618    35,097
         
          35,097

SEMICONDUCTORS—22.84%

          

Actel Corp. (1) (2)

    4,903    73,643

Advanced Micro Devices Inc. (1) (2)

    68,457    855,028

Agere Systems Inc. Class A (1) (2)

    155,007    192,209

Agere Systems Inc. Class B (1)

    176,092    198,984

Altera Corp. (1)

    72,353    1,506,389

Amkor Technology Inc. (1)

    17,542    71,045

Analog Devices Inc.

    72,591    2,881,863

Applied Materials Inc. (1)

    325,675    5,526,705

Applied Micro Circuits Corp. (1)

    59,569    214,448

Asyst Technologies Inc. (1)

    8,168    47,293

Atmel Corp. (1)

    84,902    363,381

ATMI Inc. (1) (2)

    5,976    121,671

Axcelis Technologies Inc. (1) (2)

    19,085    178,063

Broadcom Corp. Class A (1)

    48,966    1,731,438

Brooks Automation Inc. (1) (2)

    8,447    121,721

Cirrus Logic Inc. (1) (2)

    16,523    100,460

Cohu Inc.

    3,815    72,237

Conexant Systems Inc. (1)

    89,932    142,992

Credence Systems Corp. (1) (2)

    14,717    131,864

Cree Inc. (1) (2)

    14,308    320,213

Cypress Semiconductor Corp. (1)

    23,932    271,389

DSP Group Inc. (1)

    5,546    109,312

DuPont Photomasks Inc. (1) (2)

    2,813    45,964

Emulex Corp. (1)

    15,710    169,511

ESS Technology Inc. (1) (2)

    5,879    40,271

Exar Corp. (1) (2)

    7,884    106,197

Fairchild Semiconductor International Inc. Class A (1)

    19,485    286,235

Integrated Device Technology Inc. (1) (2)

    20,517    234,509

Intel Corp.

    1,249,832    30,470,904

International Rectifier Corp. (1) (2)

    12,808    502,074

Intersil Corp. Class A (2)

    27,025    496,449

KLA-Tencor Corp. (1)

    37,981    1,565,197

Kopin Corp. (1)

    13,862    53,091

Kulicke & Soffa Industries Inc. (1) (2)

    9,849    76,921

Lam Research Corp. (1) (2)

    25,801    615,354

Lattice Semiconductor Corp. (1) (2)

    20,841    102,121

Linear Technology Corp.

    59,810    2,338,571

LSI Logic Corp. (1)

    73,561    374,425

LTX Corp. (1)

    11,470    93,251

Marvell Technology Group Ltd. (1)

    36,784    854,124

Maxim Integrated Products Inc.

    62,295    2,996,389

Micrel Inc. (1) (2)

    12,932    132,812

Microchip Technology Inc. (2)

    40,033    1,159,756

Micron Technology Inc. (1)

    117,919    1,595,444

Mindspeed Technologies Inc. (1)

    19,519    63,046

Mykrolis Corp. (1)

    8,066    80,660

National Semiconductor Corp. (1)

    69,445    1,190,982

Novellus Systems Inc. (1)

    28,510    769,770

NVIDIA Corp. (1)

    30,296    466,558

OmniVision Technologies Inc. (1) (2)

    10,540    124,161

Photronics Inc. (1) (2)

    5,446    78,804

PMC-Sierra Inc. (1)

    34,235    406,712

Power Integrations Inc. (1) (2)

    5,849    118,033

QLogic Corp. (1) (2)

    17,947    438,804

Rambus Inc. (1)

    18,673    313,146

Semtech Corp. (1)

    14,621    290,227

Silicon Image Inc. (1) (2)

    13,651    163,675

Silicon Laboratories Inc. (1) (2)

    6,528    230,373

Siliconix Inc. (1) (2)

    1,195    50,931

Skyworks Solutions Inc. (1)

    27,555    230,911

Teradyne Inc. (1)

    37,567    642,396

Texas Instruments Inc.

    334,447    7,133,755

Transmeta Corp. (1) (2)

    27,774    31,385

TriQuint Semiconductor Inc. (1) (2)

    24,322    98,504

Ultratech Inc. (1) (2)

    4,160    51,834

Varian Semiconductor Equipment Associates Inc. (1) (2)

    6,963    207,985

Vitesse Semiconductor Corp. (1)

    41,317    115,688

Xilinx Inc.

    67,153    1,976,313

Zoran Corp. (1) (2)

    8,261    146,137
         
          74,962,708

SOFTWARE—24.54%

          

Actuate Corp. (1)

    11,183    40,259

Adobe Systems Inc.

    46,188    1,948,210

Advent Software Inc. (1) (2)

    5,978    94,811

Ascential Software Corp. (1)

    11,445    140,545

Autodesk Inc.

    21,895    880,179

BEA Systems Inc. (1) (2)

    74,840    485,712

BMC Software Inc. (1)

    43,445    681,218

Borland Software Corp. (1)

    15,407    127,416

Cerner Corp. (1) (2)

    5,520    248,400

Citrix Systems Inc. (1)

    32,970    580,931

Computer Associates International Inc.

    90,027    2,272,281

Compuware Corp. (1)

    67,078    331,365

Concurrent Computer Corp. (1)

    12,193    19,997

Dendrite International Inc. (1) (2)

    7,313    109,037

FileNET Corp. (1)

    7,563    143,697

Hyperion Solutions Corp. (1) (2)

    7,566    310,357

IDX Systems Corp. (1) (2)

    4,087    122,733

Informatica Corp. (1) (2)

    16,277    98,801

Inter-Tel Inc. (2)

    3,848    83,463

Intuit Inc. (1)

    34,849    1,304,747

JDA Software Group Inc. (1) (2)

    5,612    59,768

Keane Inc. (1) (2)

    10,855    160,328

Manugistics Group Inc. (1)

    14,001    38,503

Mercury Interactive Corp. (1)

    17,854    652,742

Micromuse Inc. (1)

    15,107    67,982

Microsoft Corp.

    1,966,996    55,980,706

MRO Software Inc. (1)

    3,868    41,039

NetIQ Corp. (1) (2)

    11,104    105,821

Novell Inc. (1)

    74,241    507,808

Oracle Corp. (1)

    766,116    8,051,879

Packeteer Inc. (1)

    5,991    56,196

Parametric Technology Corp. (1)

    52,107    236,566

PeopleSoft Inc. (1)

    63,914    1,151,730

Quest Software Inc. (1) (2)

    8,661    104,452

Red Hat Inc. (1) (2)

    28,409    486,362

Retek Inc. (1)

    10,440    42,386

SERENA Software Inc. (1) (2)

    5,705    87,857

Siebel Systems Inc. (1)

    87,192    702,768

Sybase Inc. (1) (2)

    18,791    273,785

Veritas Software Corp. (1)

    82,743    1,577,082

Wind River Systems Inc. (1) (2)

    13,856    135,789
         
          80,545,708

TELECOMMUNICATIONS—20.16%

          

Adaptec Inc. (1)

    20,880    156,391

ADC Telecommunications Inc. (1) (2)

    155,044    372,106

ADTRAN Inc.

    8,341    222,788

Advanced Fibre Communications Inc. (1)

    16,953    284,132

Amdocs Ltd. (1)

    33,744    732,245

American Tower Corp. Class A (1) (2)

    43,288    625,944

Andrew Corp. (1)

    28,936    313,956

Arris Group Inc. (1) (2)

    12,119    53,263

Aspect Communications Corp. (1)

    8,286    70,182

Avaya Inc. (1)

    85,886    1,258,230

Black Box Corp. (2)

    3,471    131,898

C-COR Inc. (1)

    8,127    65,991

CIENA Corp. (1)

    110,092    310,459

Cisco Systems Inc. (1)

    1,306,539    27,254,404

CommScope Inc. (1) (2)

    9,983    205,650

Computer Network Technology Corp. (1) (2)

    5,148    26,100

Comverse Technology Inc. (1)

    37,878    646,199

Corning Inc. (1)

    265,034    3,275,820

Crown Castle International Corp. (1) (2)

    43,268    610,944

Extreme Networks Inc. (1) (2)

    21,628    117,224

Finisar Corp. (1) (2)

    33,179    50,266

Foundry Networks Inc. (1)

    22,969    235,662

Harmonic Inc. (1) (2)

    12,492    81,323

Harris Corp.

    12,823    608,836

InterDigital Communications Corp. (1) (2)

    10,670    205,291

JDS Uniphase Corp. (1) (2)

    278,067    959,331

Juniper Networks Inc. (1)

    95,565    2,194,172

Lucent Technologies Inc. (1) (2)

    827,652    2,524,339

Motorola Inc.

    452,895    7,214,617

MRV Communications Inc. (1) (2)

    19,827    59,778

PanAmSat Corp. (1) (2)

    3,539    82,211

Plantronics Inc. (1)

    9,243    357,519

Polycom Inc. (1)

    19,163    369,463

Powerwave Technologies Inc. (1)

    21,594    119,631

QUALCOMM Inc.

    156,542    10,813,921

REMEC Inc. (1) (2)

    10,482    49,056

RF Micro Devices Inc. (1) (2)

    35,971    212,948

Scientific-Atlanta Inc.

    29,548    908,601

Sonus Networks Inc. (1)

    47,473    241,638

SpectraSite Inc. (1)

    8,603    369,929

Stratex Networks Inc. (1)

    13,064    32,399

Sycamore Networks Inc. (1)

    36,095    134,995

Tekelec (1)

    12,131    235,705

Tellabs Inc. (1) (2)

    72,986    650,305

3Com Corp. (1)

    75,644    372,925

UTStarcom Inc. (1) (2)

    19,280    352,053
         
          66,170,840

TOTAL COMMON STOCKS
(Cost: $365,977,164)

         328,274,876
         

Security

    Shares or Principal
    Value

SHORT-TERM INVESTMENTS—6.46%

          

MONEY MARKET FUNDS—1.65%

          
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares (3) (5)    3,415,747    3,415,747
Barclays Global Investors Funds Prime Money Market Fund, Institutional Shares (3) (5)    1,775,884    1,775,884
BlackRock Temp Cash Money Market Fund (3)    81,499    81,499
Short-Term Investment Co. - Prime Money Market Portfolio (3)    138,900    138,900
         
          5,412,030

FLOATING RATE NOTES—1.55%

          

Beta Finance Inc.

          

1.30%, 05/04/05 (3) (4)

    96,866    96,852

1.31%, 10/12/04 (3) (4)

    80,722    80,720

1.34%, 09/15/04 (3) (4)

    161,444    161,442

1.42%, 03/15/05 (3) (4)

    80,722    80,762

1.48%, 08/23/04 (3) (4)

    80,722    80,726

Canadian Imperial Bank of Commerce

          

1.24%, 10/07/04 (3)

    121,083    121,080

1.38%, 11/22/04 (3)

    40,361    40,362

1.40%, 10/29/04 (3)

    161,444    161,444

CC USA Inc.

          

1.30%, 05/04/05 (3) (4)

    161,444    161,420

1.61%, 07/29/05 (3) (4)

    161,444    161,396

Depfa Bank PLC

          

1.27%, 06/15/05 (3)

    161,444    161,444

Dorada Finance Inc.

          

1.61%, 07/29/05 (3) (4)

    133,998    133,959

Five Finance Inc.

          

1.42%, 04/29/05 (3) (4)

    129,155    129,146

HBOS Treasury Services PLC

          

1.24%, 04/01/05 (3)

    103,324    103,317

1.58%, 04/22/05 (3)

    161,444    161,444

K2 USA LLC

          

1.34%, 08/16/04 (3) (4)

    40,361    40,361

1.41%, 09/27/04 (3) (4)

    174,359    174,356

1.49%, 06/10/05 (3) (4)

    161,444    161,427

1.61%, 07/25/05 (3) (4)

    80,722    80,706

Links Finance LLC

          

1.33%, 04/15/05 (3)

    161,444    161,421

1.68%, 04/25/05 (3)

    161,444    161,521

Nationwide Building Society

          

1.59%, 07/28/05 (3) (4)

    161,444    161,444

1.63%, 12/09/04 (3)

    133,998    133,216

Northern Rock PLC

          

1.56%, 01/13/05 (3) (4)

    153,372    153,372

Permanent Financing PLC

          

1.31%, 03/10/05 (3)

    161,444    161,444

1.32%, 12/10/04 (3)

    80,722    80,722

1.34%, 06/10/05 (3)

    72,650    72,650

Sigma Finance Inc.

          

1.35%, 11/15/04 (3)

    161,444    161,440

1.52%, 10/07/04 (3)

    161,444    161,438

Tango Finance Corp.

          

1.20%, 05/17/05 (3) (4)

    133,998    133,993

1.23%, 02/25/05 (3) (4)

    90,409    90,398

1.32%, 04/07/05 (3) (4)

    59,250    59,246

1.34%, 01/18/05 (3) (4)

    71,035    71,032

1.42%, 07/25/05 (3) (4)

    161,444    161,428

WhistleJacket Capital LLC

          

1.26%, 10/20/04 (3) (4)

    39,990    39,880

1.34%, 09/15/04 (3) (4)

    80,722    80,720

1.38%, 07/15/05 (3) (4)

    121,083    121,060

1.48%, 06/15/05 (3) (4)

    80,722    80,706

White Pine Finance LLC

          

1.21%, 05/20/05 (3) (4)

    72,650    72,644

1.33%, 04/15/05 (3) (4)

    121,083    121,066

1.33%, 07/05/05 (3) (4)

    80,722    80,706

1.34%, 11/15/04 (3) (4)

    96,866    96,866

1.35%, 06/15/05 (3) (4)

    66,192    66,192

1.40%, 08/26/04 (3) (4)

    80,722    80,721

1.55%, 07/11/05 (3) (4)

    40,361    40,357
         
          5,098,047

COMMERCIAL PAPER—1.17%

          

Alpine Securitization Corp.

          

1.31%, 08/12/04 (3)

    80,722    80,693

Amsterdam Funding Corp.

          

1.30%, 08/13/04 (3)

    121,083    121,035

1.33%, 08/16/04 (3)

    161,444    161,360

1.35%, 08/20/04 (3)

    48,433    48,400

1.37%, 08/24/04 (3)

    56,505    56,458

Barton Capital Corp.

          

1.29%, 08/10/04 (3)

    80,722    80,699

1.30%, 08/13/04 (3)

    66,357    66,330

1.35%, 08/18/04 (3)

    40,361    40,337

Blue Ridge Asset Funding Corp.

          

1.29%, 08/06/04 (3)

    80,722    80,710

Corporate Asset Funding

          

1.42%, 09/03/04 (3)

    48,433    48,372

CRC Funding LLC

          

1.42%, 09/03/04 (3)

    80,722    80,620

Edison Asset Securitization

          

1.07%, 09/21/04 (3)

    80,722    80,602

1.45%, 11/09/04 (3)

    161,444    160,800

1.59%, 12/02/04 (3)

    161,444    160,574

Falcon Asset Securitization Corp.

          

1.29%, 08/09/04 (3)

    153,372    153,334

1.30%, 08/03/04 (3)

    80,722    80,719

1.34%, 08/19/04 (3)

    80,722    80,671

1.37%, 08/24/04 (3)

    64,578    64,524

Ford Credit Auto Receivables

          

1.85%, 01/14/05 (3)

    80,722    80,038

GIRO Funding US Corp.

          

1.55%, 10/15/04 (3)

    105,867    105,530

Grampian Funding LLC

          

1.26%, 10/22/04 (3)

    161,444    160,988

1.44%, 10/27/04 (3)

    161,444    160,889

1.59%, 11/30/04 (3)

    80,722    80,294

Jupiter Securitization Corp.

          

1.30%, 08/12/04 (3)

    80,722    80,693

1.37%, 08/20/04 (3)

    108,008    107,934

Park Avenue Receivables Corp.

          

1.35%, 08/19/04 (3)

    80,722    80,671

Preferred Receivables Funding Corp.

          

1.29%, 08/05/04 (3)

    74,568    74,560

1.36%, 08/23/04 (3)

    80,722    80,658

Receivables Capital Corp.

          

1.30%, 08/12/04 (3)

    56,505    56,485

1.34%, 08/16/04 (3)

    9,654    9,649

1.35%, 08/18/04 (3)

    72,650    72,606

1.35%, 08/19/04 (3)

    27,445    27,428

Scaldis Capital LLC

          

1.34%, 08/16/04 (3)

    161,444    161,360

1.37%, 08/20/04 (3)

    24,217    24,201

1.40%, 08/25/04 (3)

    201,805    201,624

Sydney Capital Corp.

          

1.25%, 10/22/04 (3)

    53,729    53,577

1.31%, 08/12/04 (3)

    64,578    64,554

Thames Asset Global Securitization No. 1 Inc.

          

1.30%, 08/12/04 (3)

    85,200    85,170

1.34%, 08/16/04 (3)

    45,204    45,181

1.36%, 08/20/04 (3)

    121,083    121,001

1.37%, 08/19/04 (3)

    45,096    45,067

1.37%, 08/20/04 (3)

    20,988    20,973

Windmill Funding Corp.

          

1.29%, 08/06/04 (3)

    201,805    201,776
         
          3,849,145

TIME DEPOSITS—1.03%

          

Abbey National Treasury Services PLC

          

1.25%, 01/06/05 (3)

    161,444    161,444

1.33%, 02/10/05 (3)

    80,722    80,716

1.39%, 02/02/05 (3)

    80,722    80,716

1.39%, 04/08/05 (3)

    113,011    112,999

1.40%, 10/25/04 (3)

    161,444    161,430

Bank of New York

          

1.39%, 11/01/04 (3)

    161,444    161,440

1.60%, 12/03/04 (3)

    40,361    40,355

Bank of Nova Scotia

          

1.13%, 10/06/04 (3)

    161,444    161,444

1.24%, 10/07/04 (3)

    121,083    121,081

1.42%, 10/29/04 (3)

    121,083    121,085

National City Bank (Cleveland, Ohio)

          

1.25%, 01/06/05 (3)

    161,444    161,447

1.35%, 06/10/05 (3)

    80,722    80,744

1.36%, 06/23/05 (3)

    161,444    161,401

Norddeutsche Landesbank

          

1.59%, 07/27/05 (3)

    161,444    161,388

Nordea Bank PLC

          

2.11%, 06/07/05 (3)

    161,444    161,417

Prudential Funding LLC

          

1.60%, 12/01/04 (3)

    80,722    80,288

Toronto-Dominion Bank

          

1.22%, 03/23/05 (3)

    282,527    282,495

1.34%, 02/10/05 (3)

    64,578    64,572

1.41%, 11/01/04 (3)

    121,083    121,080

1.77%, 05/10/05 (3)

    80,722    80,716

1.90%, 05/11/05 (3)

    80,722    80,716

UBS Finance (Delaware)

          

1.10%, 09/08/04 (3)

    161,444    161,261

1.11%, 12/17/04 (3)

    242,166    241,144

1.13%, 08/09/04 (3)

    161,444    161,408

1.14%, 09/29/04 (3)

    161,444    161,149
         
          3,363,936

REPURCHASE AGREEMENTS—0.62%

          

Banc of America Securities LLC

          

1.34%, 08/02/04 (3) (6)

    419,754    419,754

Bank of America, N.A.

          

1.37%, 08/02/04 (3) (6)

    807,220    807,220

Goldman Sachs & Co.

          

1.37%, 08/02/04 (3) (6)

    807,220    807,220
         
          2,034,194

U.S. GOVERNMENT AGENCY NOTES—0.26%

          

Federal Home Loan Mortgage Corp.

          

1.28%, 08/19/04 (3)

    64,578    64,539

1.63%, 04/15/05 (3)

    113,011    113,264

1.80%, 01/18/05 (3)

    75,071    74,437

1.80%, 01/19/05 (3)

    80,722    80,036

2.06%, 05/31/05 (3)

    80,485    79,094

Federal National Mortgage Association

          

1.28%, 08/20/04 (3)

    209,877    209,743

2.33%, 07/22/05 (3)

    242,166    236,629
         
          857,742

MEDIUM-TERM NOTES—0.18%

              

CC USA Inc.

              

1.29%, 04/15/05 (3) (4)

    161,444      161,433  

1.51%, 02/15/05 (3) (4)

    104,939      105,027  

Dorada Finance Inc.

              

1.24%, 08/09/04 (3) (4)

    40,361      40,361  

1.48%, 01/18/05 (3) (4)

    121,083      121,080  

K2 USA LLC

              

1.46%, 01/12/05 (3) (4)

    80,722      80,718  

Sigma Finance Inc.

              

1.24%, 08/06/04 (3)

    40,361      40,361  

WhistleJacket Capital LLC

              

1.32%, 02/04/05 (3) (4)

    40,361      40,357  
         
            589,337  

TOTAL SHORT-TERM INVESTMENTS
(Cost: $21,204,431)

           21,204,431  
         

TOTAL INVESTMENTS IN SECURITIES — 106.49%
(Cost: $387,181,595) (7)

           349,479,307  

Other Assets, Less Liabilities — (6.49%)

           (21,298,843 )
         

NET ASSETS — 100.00%

         $ 328,180,464  
         
(1) Non-income earning security.
(2) All or a portion of this security represents a security on loan.
(3) All or a portion of this security represents an investment of securities lending collateral.
(4) Security exempt from registration pursuant to Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.
(5) Issuer is an affiliate of the Fund’s investment adviser.
(6) Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 3.61% to 7.00% and maturity dates ranging from 7/1/13 to 7/1/34.
(7) The cost of investments for federal income tax purposes was $416,580,186. Net unrealized depreciation aggregated $67,100,879, of which $19,768,851 represented gross unrealized appreciation on securities and $86,869,730 represented gross unrealized depreciation on securities.

Schedule of Investments (Unaudited)

iSHARES® DOW JONES U.S. TELECOMMUNICATIONS SECTOR INDEX FUND

July 31, 2004

 

Security

    Shares
    Value

COMMON STOCKS—99.73%

            

TELECOMMUNICATIONS—99.73%

            

Alltel Corp.

    252,171    $ 13,112,892

AT&T Corp.

    720,549      10,880,290

AT&T Wireless Services Inc. (1)

    942,437      13,608,790

BCE Inc. (Canada)

    654,215      13,718,889

BellSouth Corp.

    821,691      22,259,609

CenturyTel Inc.

    321,610      9,966,694

Cincinnati Bell Inc. (1) (2)

    501,958      2,027,910

Citizens Communications Co. (1)

    535,724      7,714,426

IDT Corp. (1)

    49,992      774,876

IDT Corp. Class B (1) (2)

    92,454      1,456,150

Level 3 Communications Inc. (1)

    10,000      30,300

Nextel Communications Inc. Class A (1)

    533,671      12,146,352

Nextel Partners Inc. Class A (1) (2)

    136,752      2,197,605

NII Holdings Inc. Class B (1) (2)

    81,255      3,089,315

Qwest Communications International Inc. (1)

    1,439,945      5,601,386

SBC Communications Inc.

    2,137,295      54,159,055

Sprint Corp. (FON Group)

    709,474      13,252,974

Telephone & Data Systems Inc. (2)

    160,152      12,155,537

United States Cellular Corp. (1) (2)

    144,743      5,681,163

Verizon Communications Inc.

    1,674,557      64,537,427

Vodafone Group PLC ADR

    440,966      9,582,191

Western Wireless Corp. Class A (1) (2)

    130,387      3,440,913

Wireless Facilities Inc. (1) (2)

    116,763      873,387
         
            282,268,131

TOTAL COMMON STOCKS
(Cost: $292,800,679)

           282,268,131
         

Security

    Shares or Principal
    Value

SHORT-TERM INVESTMENTS—4.45%

            

MONEY MARKET FUNDS—1.15%

            
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares (3) (5)    2,073,190      2,073,190
Barclays Global Investors Funds Prime Money Market Fund, Institutional Shares (3) (5)    1,051,321      1,051,321
BlackRock Temp Cash Money Market Fund (3)    48,248      48,248
Short-Term Investment Co.—Prime Money Market Portfolio (3)    82,229      82,229
         
            3,254,988

FLOATING RATE NOTES—1.07%

          

Beta Finance Inc.

          

1.30%, 05/04/05 (3) (4)

    57,345    57,336

1.31%, 10/12/04 (3) (4)

    47,787    47,787

1.34%, 09/15/04 (3) (4)

    95,575    95,574

1.42%, 03/15/05 (3) (4)

    47,787    47,811

1.48%, 08/23/04 (3) (4)

    47,787    47,790

Canadian Imperial Bank of Commerce

          

1.24%, 10/07/04 (3)

    71,681    71,670

1.38%, 11/22/04 (3)

    23,894    23,894

1.40%, 10/29/04 (3)

    95,575    95,574

CC USA Inc.

          

1.30%, 05/04/05 (3) (4)

    95,575    95,560

1.61%, 07/29/05 (3) (4)

    95,575    95,546

Depfa Bank PLC

          

1.27%, 06/15/05 (3)

    95,575    95,575

Dorada Finance Inc.

          

1.61%, 07/29/05 (3) (4)

    79,327    79,303

Five Finance Inc.

          

1.42%, 04/29/05 (3) (4)

    76,460    76,454

HBOS Treasury Services PLC

          

1.24%, 04/01/05 (3)

    61,168    61,164

1.58%, 04/22/05 (3)

    95,575    95,575

K2 USA LLC

          

1.34%, 08/16/04 (3) (4)

    23,894    23,894

1.41%, 09/27/04 (3) (4)

    103,221    103,218

1.49%, 06/10/05 (3) (4)

    95,575    95,565

1.61%, 07/25/05 (3) (4)

    47,787    47,778

Links Finance LLC

          

1.33%, 04/15/05 (3)

    95,575    95,561

1.68%, 04/25/05 (3)

    95,575    95,620

Nationwide Building Society

          

1.59%, 07/28/05 (3) (4)

    95,575    95,575

1.63%, 12/09/04 (3)

    79,327    78,864

Northern Rock PLC

          

1.56%, 01/13/05 (3) (4)

    90,796    90,796

Permanent Financing PLC

          

1.31%, 03/10/05 (3)

    95,575    95,575

1.32%, 12/10/04 (3)

    47,787    47,787

1.34%, 06/10/05 (3)

    43,009    43,009

Sigma Finance Inc.

          

1.35%, 11/15/04 (3)

    95,575    95,573

1.52%, 10/07/04 (3)

    95,575    95,572

Tango Finance Corp.

          

1.20%, 05/17/05 (3) (4)

    79,327    79,324

1.23%, 02/25/05 (3) (4)

    53,522    53,516

1.32%, 04/07/05 (3) (4)

    35,076    35,074

1.34%, 01/18/05 (3) (4)

    42,053    42,051

1.42%, 07/25/05 (3) (4)

    95,575    95,565

WhistleJacket Capital LLC

          

1.26%, 10/20/04 (3) (4)

    23,674    23,608

1.34%, 09/15/04 (3) (4)

    47,787    47,786

1.38%, 07/15/05 (3) (4)

    71,681    71,667

1.48%, 06/15/05 (3) (4)

    47,787    47,778

White Pine Finance LLC

          

1.21%, 05/20/05 (3) (4)

    43,009    43,005

1.33%, 04/15/05 (3) (4)

    71,681    71,671

1.33%, 07/05/05 (3) (4)

    47,787    47,778

1.34%, 11/15/04 (3) (4)

    57,345    57,345

1.35%, 06/15/05 (3) (4)

    39,186    39,186

1.40%, 08/26/04 (3) (4)

    47,787    47,787

1.55%, 07/11/05 (3) (4)

    23,894    23,891
         
          3,018,032

COMMERCIAL PAPER—0.80%

          

Alpine Securitization Corp.

          

1.31%, 08/12/04 (3)

    47,787    47,770

Amsterdam Funding Corp.

          

1.30%, 08/13/04 (3)

    71,681    71,653

1.33%, 08/16/04 (3)

    95,575    95,525

1.35%, 08/20/04 (3)

    28,672    28,653

1.37%, 08/24/04 (3)

    33,451    33,423

Barton Capital Corp.

          

1.29%, 08/10/04 (3)

    47,787    47,774

1.30%, 08/13/04 (3)

    39,283    39,267

1.35%, 08/18/04 (3)

    23,894    23,879

Blue Ridge Asset Funding Corp.

          

1.29%, 08/06/04 (3)

    47,787    47,780

Corporate Asset Funding

          

1.42%, 09/03/04 (3)

    28,672    28,637

CRC Funding LLC

          

1.42%, 09/03/04 (3)

    47,787    47,728

Edison Asset Securitization

          

1.07%, 09/21/04 (3)

    47,787    47,717

1.45%, 11/09/04 (3)

    95,575    95,194

1.59%, 12/02/04 (3)

    95,575    95,060

Falcon Asset Securitization Corp.

          

1.29%, 08/09/04 (3)

    90,796    90,773

1.30%, 08/03/04 (3)

    47,787    47,786

1.34%, 08/19/04 (3)

    47,787    47,757

1.37%, 08/24/04 (3)

    38,230    38,198

Ford Credit Auto Receivables

          

1.85%, 01/14/05 (3)

    47,787    47,382

GIRO Funding US Corp.

          

1.55%, 10/15/04 (3)

    62,673    62,473

Grampian Funding LLC

          

1.26%, 10/22/04 (3)

    95,575    95,305

1.44%, 10/27/04 (3)

    95,575    95,246

1.59%, 11/30/04 (3)

    47,787    47,534

Jupiter Securitization Corp.

          

1.30%, 08/12/04 (3)

    47,787    47,770

1.37%, 08/20/04 (3)

    63,940    63,897

Park Avenue Receivables Corp.

          

1.35%, 08/19/04 (3)

    47,787    47,757

Preferred Receivables Funding Corp.

          

1.29%, 08/05/04 (3)

    44,144    44,139

1.36%, 08/23/04 (3)

    47,787    47,749

Receivables Capital Corp.

          

1.30%, 08/12/04 (3)

    33,451    33,439

1.34%, 08/16/04 (3)

    5,715    5,712

1.35%, 08/18/04 (3)

    43,009    42,983

1.35%, 08/19/04 (3)

    16,248    16,237

Scaldis Capital LLC

          

1.34%, 08/16/04 (3)

    95,575    95,525

1.37%, 08/20/04 (3)

    14,336    14,326

1.40%, 08/25/04 (3)

    119,468    119,361

Sydney Capital Corp.

          

1.25%, 10/22/04 (3)

    31,807    31,718

1.31%, 08/12/04 (3)

    38,230    38,216

Thames Asset Global Securitization No. 1 Inc.

          

1.30%, 08/12/04 (3)

    50,439    50,420

1.34%, 08/16/04 (3)

    26,761    26,747

1.36%, 08/20/04 (3)

    71,681    71,632

1.37%, 08/19/04 (3)

    26,697    26,680

1.37%, 08/20/04 (3)

    12,425    12,416

Windmill Funding Corp.

          

1.29%, 08/06/04 (3)

    119,468    119,451
         
          2,278,689

TIME DEPOSITS—0.70%

          

Abbey National Treasury Services PLC

          

1.25%, 01/06/05 (3)

    95,575    95,575

1.33%, 02/10/05 (3)

    47,787    47,784

1.39%, 02/02/05 (3)

    47,787    47,784

1.39%, 04/08/05 (3)

    66,902    66,895

1.40%, 10/25/04 (3)

    95,575    95,571

Bank of New York

          

1.39%, 11/01/04 (3)

    95,575    95,572

1.60%, 12/03/04 (3)

    23,894    23,890

Bank of Nova Scotia

          

1.13%, 10/06/04 (3)

    95,575    95,575

1.24%, 10/07/04 (3)

    71,681    71,680

1.42%, 10/29/04 (3)

    71,681    71,682

National City Bank (Cleveland, Ohio)

          

1.25%, 01/06/05 (3)

    95,575    95,577

1.35%, 06/10/05 (3)

    47,787    47,800

1.36%, 06/23/05 (3)

    95,575    95,549

Norddeutsche Landesbank

          

1.59%, 07/27/05 (3)

    95,575    95,542

Nordea Bank PLC

          

2.11%, 06/07/05 (3)

    95,575    95,559

Prudential Funding LLC

          

1.60%, 12/01/04 (3)

    47,787    47,530

Toronto-Dominion Bank

          

1.22%, 03/23/05 (3)

    167,256    167,237

1.34%, 02/10/05 (3)

    38,230    38,227

1.41%, 11/01/04 (3)

    71,681    71,680

1.77%, 05/10/05 (3)

    47,787    47,784

1.90%, 05/11/05 (3)

    47,787    47,784

UBS Finance (Delaware)

          

1.10%, 09/08/04 (3)

    95,575    95,467

1.11%, 12/17/04 (3)

    143,362    142,756

1.13%, 08/09/04 (3)

    95,575    95,554

1.14%, 09/29/04 (3)

    95,575    95,400
         
          1,991,454

REPURCHASE AGREEMENTS—0.43%

          

Banc of America Securities LLC

          

1.34%, 08/02/04 (3) (6)

    248,494    248,494

Bank of America, N.A.

          

1.37%, 08/02/04 (3) (6)

    477,873    477,873

Goldman Sachs & Co.

          

1.37%, 08/02/04 (3) (6)

    477,873    477,873
         
          1,204,240

U.S. GOVERNMENT AGENCY NOTES—0.18%

              

Federal Home Loan Mortgage Corp.

              

1.28%, 08/19/04 (3)

    38,230      38,207  

1.63%, 04/15/05 (3)

    66,902      67,052  

1.80%, 01/18/05 (3)

    44,442      44,067  

1.80%, 01/19/05 (3)

    47,787      47,381  

2.06%, 05/31/05 (3)

    47,647      46,823  

Federal National Mortgage Association

              

1.28%, 08/20/04 (3)

    124,247      124,168  

2.33%, 07/22/05 (3)

    143,362      140,084  
         
            507,782  

MEDIUM-TERM NOTES—0.12%

              

CC USA Inc.

              

1.29%, 04/15/05 (3) (4)

    95,575      95,568  

1.51%, 02/15/05 (3) (4)

    62,124      62,176  

Dorada Finance Inc.

              

1.24%, 08/09/04 (3) (4)

    23,894      23,894  

1.48%, 01/18/05 (3) (4)

    71,681      71,679  

K2 USA LLC

              

1.46%, 01/12/05 (3) (4)

    47,787      47,785  

Sigma Finance Inc.

              

1.24%, 08/06/04 (3)

    23,894      23,894  

WhistleJacket Capital LLC

              

1.32%, 02/04/05 (3) (4)

    23,894      23,891  
         
            348,887  

TOTAL SHORT-TERM INVESTMENTS
(Cost: $12,604,072)

           12,604,072  
         

TOTAL INVESTMENTS IN SECURITIES —104.18%
(Cost: $305,404,751) (7)

           294,872,203  

Other Assets, Less Liabilities — (4.18%)

           (11,826,605 )
         

NET ASSETS — 100.00%

         $ 283,045,598  
         
(1) Non-income earning security.
(2) All or a portion of this security represents a security on loan.
(3) All or a portion of this security represents an investment of securities lending collateral.
(4) Security exempt from registration pursuant to Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.
(5) Issuer is an affiliate of the Fund’s investment adviser.
(6) Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 3.61% to 7.00% and maturity dates ranging from 7/1/13 to 7/1/34.
(7) The cost of investments for federal income tax purposes was $309,626,759. Net unrealized depreciation aggregated $14,754,556, of which $3,834,809 represented gross unrealized appreciation on securities and $18,589,365 represented gross unrealized depreciation on securities.

Schedule of Investments (Unaudited)

iSHARES® DOW JONES U.S. UTILITIES SECTOR INDEX FUND

July 31, 2004

 

Security

    Shares
    Value

COMMON STOCKS—99.87%

            

ELECTRIC—87.76%

            

AES Corp. (The) (1)

    767,015    $ 7,401,695

Allegheny Energy Inc. (1) (2)

    160,946      2,388,439

Alliant Energy Corp.

    141,557      3,667,742

Ameren Corp.

    232,066      10,371,029

American Electric Power Co. Inc. (2)

    502,642      15,637,193

Aquila Inc. (1)

    248,665      815,621

Avista Corp.

    57,755      1,007,825

Black Hills Corp.

    41,083      1,134,712

Calpine Corp. (1) (2)

    527,353      2,035,583

CenterPoint Energy Inc. (2)

    344,535      4,000,051

Cinergy Corp.

    213,056      8,149,392

Cleco Corp. (2)

    60,262      1,039,519

CMS Energy Corp. (1) (2)

    207,289      1,871,820

Consolidated Edison Inc. (2)

    306,122      12,541,818

Constellation Energy Group Inc.

    214,103      8,253,671

Dominion Resources Inc.

    414,791      26,322,637

DPL Inc. (2)

    120,417      2,402,319

DTE Energy Co. (2)

    220,388      8,852,986

Duke Energy Corp.

    1,162,188      24,987,042

Duquesne Light Holdings Inc. (2)

    96,559      1,831,724

Edison International

    380,240      10,190,432

El Paso Electric Co. (1)

    60,307      907,620

Energy East Corp.

    186,142      4,534,419

Entergy Corp.

    292,541      16,821,107

Exelon Corp.

    839,630      29,303,087

FirstEnergy Corp.

    419,029      16,384,034

FPL Group Inc.

    215,917      14,537,692

Great Plains Energy Inc. (2)

    94,124      2,700,418

Hawaiian Electric Industries Inc. (2)

    101,878      2,600,945

IDACORP Inc. (2)

    48,370      1,330,175

MDU Resources Group Inc.

    137,351      3,358,232

NiSource Inc.

    334,737      6,929,056

Northeast Utilities

    162,228      3,033,664

NRG Energy Inc. (1)

    106,908      2,842,684

NSTAR

    67,226      3,146,177

OGE Energy Corp. (2)

    111,063      2,764,358

Pepco Holdings Inc.

    218,807      3,938,526

PG&E Corp. (1)

    476,007      13,585,240

Pinnacle West Capital Corp.

    116,088      4,701,564

PNM Resources Inc. (2)

    76,859      1,601,742

PPL Corp.

    225,937      10,472,180

Progress Energy Inc. (2)

    313,274      13,201,366

Public Service Enterprise Group Inc.

    300,609      11,723,751

Puget Energy Inc.

    125,825      2,717,820

Reliant Energy Inc. (1) (2)

    355,069      3,508,082

SCANA Corp.

    127,639      4,674,140

Sierra Pacific Resources Corp. (1) (2)

    148,486    1,220,555

Southern Co. (The)

    937,013    27,435,741

TECO Energy Inc. (2)

    239,575    3,090,517

Texas Genco Holdings Inc.

    19,339    897,136

TXU Corp.

    411,419    16,316,877

UniSource Energy Corp. (2)

    40,542    1,000,982

Westar Energy Inc.

    108,397    2,186,367

Wisconsin Energy Corp.

    150,238    4,830,152

WPS Resources Corp. (2)

    47,037    2,158,528

Xcel Energy Inc. (2)

    507,373    8,676,078
         
          404,034,262

GAS—8.91%

          

AGL Resources Inc.

    75,431    2,228,986

Atmos Energy Corp. (2)

    77,288    1,945,339

Energen Corp.

    41,494    1,964,741

KeySpan Corp.

    203,533    7,325,153

New Jersey Resources Corp. (2)

    34,921    1,419,539

Nicor Inc. (2)

    55,843    1,848,962

Northwest Natural Gas Co. (2)

    34,724    1,020,191

NUI Corp. (2)

    20,176    267,735

ONEOK Inc. (2)

    121,574    2,553,054

Peoples Energy Corp. (2)

    47,584    1,855,776

Piedmont Natural Gas Co. (2)

    45,286    1,868,047

Sempra Energy

    256,705    9,177,204

Southern Union Co. (1) (2)

    68,969    1,373,173

UGI Corp.

    64,352    2,084,361

Vectren Corp.

    96,164    2,380,059

WGL Holdings Inc.

    61,652    1,691,731
         
          41,004,051

PIPELINES—2.70%

          

Dynegy Inc. Class A (1) (2)

    357,505    1,501,521

Equitable Resources Inc.

    79,420    4,072,658

National Fuel Gas Co. (2)

    98,478    2,515,128

Questar Corp.

    106,469    4,363,100
         
          12,452,407

WATER—0.50%

          

Aqua America Inc.

    117,685    2,288,973
         
          2,288,973

TOTAL COMMON STOCKS
(Cost: $423,866,429)

         459,779,693
         

Security

    Shares or Principal
    Value

SHORT-TERM INVESTMENTS—13.06%

          

MONEY MARKET FUNDS—3.27%

          
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares (3) (5)    9,360,093    9,360,093
Barclays Global Investors Funds Prime Money Market Fund, Institutional Shares (3) (5)    5,068,498    5,068,498
BlackRock Temp Cash Money Market Fund (3)    232,605    232,605
Short-Term Investment Co. - Prime Money Market Portfolio (3)    396,430    396,430
         
          15,057,626

FLOATING RATE NOTES—3.16%

          

Beta Finance Inc.

          

1.30%, 05/04/05 (3) (4)

    276,464    276,422

1.31%, 10/12/04 (3) (4)

    230,386    230,382

1.34%, 09/15/04 (3) (4)

    460,773    460,767

1.42%, 03/15/05 (3) (4)

    230,386    230,501

1.48%, 08/23/04 (3) (4)

    230,386    230,397

Canadian Imperial Bank of Commerce

          

1.24%, 10/07/04 (3)

    345,579    345,570

1.38%, 11/22/04 (3)

    115,193    115,196

1.40%, 10/29/04 (3)

    460,773    460,770

CC USA Inc.

          

1.30%, 05/04/05 (3) (4)

    460,773    460,704

1.61%, 07/29/05 (3) (4)

    460,773    460,635

Depfa Bank PLC

          

1.27%, 06/15/05 (3)

    460,773    460,773

Dorada Finance Inc.

          

1.61%, 07/29/05 (3) (4)

    382,441    382,327

Five Finance Inc.

          

1.42%, 04/29/05 (3) (4)

    368,618    368,591

HBOS Treasury Services PLC

          

1.24%, 04/01/05 (3)

    294,894    294,875

1.58%, 04/22/05 (3)

    460,773    460,773

K2 USA LLC

          

1.34%, 08/16/04 (3) (4)

    115,193    115,192

1.41%, 09/27/04 (3) (4)

    497,634    497,623

1.49%, 06/10/05 (3) (4)

    460,773    460,724

1.61%, 07/25/05 (3) (4)

    230,386    230,341

Links Finance LLC

          

1.33%, 04/15/05 (3)

    460,773    460,708

1.68%, 04/25/05 (3)

    460,773    460,991

Nationwide Building Society

          

1.59%, 07/28/05 (3) (4)

    460,773    460,773

1.63%, 12/09/04 (3)

    382,441    380,207

Northern Rock PLC

          

1.56%, 01/13/05 (3) (4)

    437,734    437,734

Permanent Financing PLC

          

1.31%, 03/10/05 (3)

    460,773    460,773

1.32%, 12/10/04 (3)

    230,386    230,386

1.34%, 06/10/05 (3)

    207,348    207,348

Sigma Finance Inc.

          

1.35%, 11/15/04 (3)

    460,773    460,762

1.52%, 10/07/04 (3)

    460,773    460,756

Tango Finance Corp.

          

1.20%, 05/17/05 (3) (4)

    382,441    382,426

1.23%, 02/25/05 (3) (4)

    258,033    258,003

1.32%, 04/07/05 (3) (4)

    169,104    169,092

1.34%, 01/18/05 (3) (4)

    202,740    202,730

1.42%, 07/25/05 (3) (4)

    460,773    460,727

WhistleJacket Capital LLC

          

1.26%, 10/20/04 (3) (4)

    114,133    113,818

1.34%, 09/15/04 (3) (4)

    230,386    230,381

1.38%, 07/15/05 (3) (4)

    345,579    345,513

1.48%, 06/15/05 (3) (4)

    230,386    230,340

White Pine Finance LLC

          

1.21%, 05/20/05 (3) (4)

    207,348    207,332

1.33%, 04/15/05 (3) (4)

    345,579    345,531

1.33%, 07/05/05 (3) (4)

    230,386    230,340

1.34%, 11/15/04 (3) (4)

    276,464    276,464

1.35%, 06/15/05 (3) (4)

    188,917    188,917

1.40%, 08/26/04 (3) (4)

    230,386    230,384

1.55%, 07/11/05 (3) (4)

    115,193    115,181
         
          14,550,180

COMMERCIAL PAPER—2.39%

          

Alpine Securitization Corp.

          

1.31%, 08/12/04 (3)

    230,386    230,302

Amsterdam Funding Corp.

          

1.30%, 08/13/04 (3)

    345,579    345,442

1.33%, 08/16/04 (3)

    460,773    460,534

1.35%, 08/20/04 (3)

    138,232    138,138

1.37%, 08/24/04 (3)

    161,270    161,135

Barton Capital Corp.

          

1.29%, 08/10/04 (3)

    230,386    230,320

1.30%, 08/13/04 (3)

    189,387    189,311

1.35%, 08/18/04 (3)

    115,193    115,124

Blue Ridge Asset Funding Corp.

          

1.29%, 08/06/04 (3)

    230,386    230,353

Corporate Asset Funding

          

1.42%, 09/03/04 (3)

    138,232    138,057

CRC Funding LLC

          

1.42%, 09/03/04 (3)

    230,386    230,095

Edison Asset Securitization

          

1.07%, 09/21/04 (3)

    230,386    230,044

1.45%, 11/09/04 (3)

    460,773    458,936

1.59%, 12/02/04 (3)

    460,773    458,290

Falcon Asset Securitization Corp.

          

1.29%, 08/09/04 (3)

    437,734    437,625

1.30%, 08/03/04 (3)

    230,386    230,378

1.34%, 08/19/04 (3)

    230,386    230,240

1.37%, 08/24/04 (3)

    184,309    184,155

Ford Credit Auto Receivables

          

1.85%, 01/14/05 (3)

    230,386    228,433

GIRO Funding US Corp.

          

1.55%, 10/15/04 (3)

    302,152    301,189

Grampian Funding LLC

          

1.26%, 10/22/04 (3)

    460,773    459,471

1.44%, 10/27/04 (3)

    460,773    459,187

1.59%, 11/30/04 (3)

    230,386    229,165

Jupiter Securitization Corp.

          

1.30%, 08/12/04 (3)

    230,386    230,303

1.37%, 08/20/04 (3)

    308,261    308,050

Park Avenue Receivables Corp.

          

1.35%, 08/19/04 (3)

    230,386    230,239

Preferred Receivables Funding Corp.

          

1.29%, 08/05/04 (3)

    212,822    212,799

1.36%, 08/23/04 (3)

    230,386    230,203

Receivables Capital Corp.

          

1.30%, 08/12/04 (3)

    161,270    161,212

1.34%, 08/16/04 (3)

    27,554    27,540

1.35%, 08/18/04 (3)

    207,348    207,224

1.35%, 08/19/04 (3)

    78,331    78,281

Scaldis Capital LLC

          

1.34%, 08/16/04 (3)

    460,773    460,532

1.37%, 08/20/04 (3)

    69,116    69,069

1.40%, 08/25/04 (3)

    575,966    575,450

Sydney Capital Corp.

          

1.25%, 10/22/04 (3)

    153,345    152,914

1.31%, 08/12/04 (3)

    184,309    184,242

Thames Asset Global Securitization No. 1 Inc.

          

1.30%, 08/12/04 (3)

    243,168    243,080

1.34%, 08/16/04 (3)

    129,016    128,949

1.36%, 08/20/04 (3)

    345,579    345,345

1.37%, 08/19/04 (3)

    128,708    128,624

1.37%, 08/20/04 (3)

    59,900    59,859

Windmill Funding Corp.

          

1.29%, 08/06/04 (3)

    575,966    575,883
         
          10,985,722

TIME DEPOSITS—2.09%

          

Abbey National Treasury Services PLC

          

1.25%, 01/06/05 (3)

    460,773    460,773

1.33%, 02/10/05 (3)

    230,386    230,368

1.39%, 02/02/05 (3)

    230,386    230,369

1.39%, 04/08/05 (3)

    322,541    322,508

1.40%, 10/25/04 (3)

    460,773    460,750

Bank of New York

          

1.39%, 11/01/04 (3)

    460,773    460,761

1.60%, 12/03/04 (3)

    115,193    115,173

Bank of Nova Scotia

          

1.13%, 10/06/04 (3)

    460,773    460,773

1.24%, 10/07/04 (3)

    345,579    345,573

1.42%, 10/29/04 (3)

    345,579    345,586

National City Bank (Cleveland, Ohio)

          

1.25%, 01/06/05 (3)

    460,773    460,783

1.35%, 06/10/05 (3)

    230,386    230,448

1.36%, 06/23/05 (3)

    460,773    460,649

Norddeutsche Landesbank

          

1.59%, 07/27/05 (3)

    460,773    460,614

Nordea Bank PLC

          

2.11%, 06/07/05 (3)

    460,773    460,696

Prudential Funding LLC

          

1.60%, 12/01/04 (3)

    230,386    229,148

Toronto-Dominion Bank

          

1.22%, 03/23/05 (3)

    806,352    806,262

1.34%, 02/10/05 (3)

    184,309    184,294

1.41%, 11/01/04 (3)

    345,579    345,571

1.77%, 05/10/05 (3)

    230,386    230,369

1.90%, 05/11/05 (3)

    230,386    230,369

UBS Finance (Delaware)

          

1.10%, 09/08/04 (3)

    460,773    460,252

1.11%, 12/17/04 (3)

    691,159    688,239

1.13%, 08/09/04 (3)

    460,773    460,671

1.14%, 09/29/04 (3)

    460,773    459,930
         
          9,600,929

REPURCHASE AGREEMENTS—1.26%

          

Banc of America Securities LLC

          

1.34%, 08/02/04 (3) (6)

    1,198,009    1,198,009

Bank of America, N.A.

          

1.37%, 08/02/04 (3) (6)

    2,303,863    2,303,863

Goldman Sachs & Co.

          

1.37%, 08/02/04 (3) (6)

    2,303,863    2,303,863
         
          5,805,735

U.S. GOVERNMENT AGENCY NOTES—0.53%

              

Federal Home Loan Mortgage Corp.

              

1.28%, 08/19/04 (3)

    184,309      184,198  

1.63%, 04/15/05 (3)

    322,541      323,264  

1.80%, 01/18/05 (3)

    214,259      212,449  

1.80%, 01/19/05 (3)

    230,386      228,428  

2.06%, 05/31/05 (3)

    229,709      225,740  

Federal National Mortgage Association

              

1.28%, 08/20/04 (3)

    599,004      598,621  

2.33%, 07/22/05 (3)

    691,159      675,357  
         
            2,448,057  

MEDIUM-TERM NOTES—0.36%

              

CC USA Inc.

              

1.29%, 04/15/05 (3) (4)

    460,773      460,740  

1.51%, 02/15/05 (3) (4)

    299,502      299,754  

Dorada Finance Inc.

              

1.24%, 08/09/04 (3) (4)

    115,193      115,193  

1.48%, 01/18/05 (3) (4)

    345,579      345,571  

K2 USA LLC

              

1.46%, 01/12/05 (3) (4)

    230,386      230,377  

Sigma Finance Inc.

              

1.24%, 08/06/04 (3)

    115,193      115,194  

WhistleJacket Capital LLC

              

1.32%, 02/04/05 (3) (4)

    115,193      115,181  
         
            1,682,010  

TOTAL SHORT-TERM INVESTMENTS
(Cost: $60,130,259)

           60,130,259  
         

TOTAL INVESTMENTS IN SECURITIES — 112.93%
(Cost: $483,996,688) (7)

           519,909,952  

Other Assets, Less Liabilities — (12.93%)

           (59,524,911 )
         

NET ASSETS — 100.00%

         $ 460,385,041  
         
(1) Non-income earning security.
(2) All or a portion of this security represents a security on loan.
(3) All or a portion of this security represents an investment of securities lending collateral.
(4) Security exempt from registration pursuant to Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.
(5) Issuer is an affiliate of the Fund’s investment adviser.
(6) Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 3.61% to 7.00% and maturity dates ranging from 7/1/13 to 7/1/34.
(7) The cost of investments for federal income tax purposes was $494,526,909. Net unrealized appreciation aggregated $25,383,043, of which $46,750,593 represented gross unrealized appreciation on securities and $21,367,550 represented gross unrealized depreciation on securities.

Schedule of Investments (Unaudited)

iSHARES® DOW JONES U.S. FINANCIAL SERVICES INDEX FUND

July 31, 2004

 

Security

    Shares
    Value

COMMON STOCKS—99.81%

            

BANKS—44.44%

            

AMCORE Financial Inc. (1)

    1,537    $ 43,420

AmSouth Bancorp

    22,757      558,229

Associated Bancorp (1)

    6,604      198,846

BancorpSouth Inc. (1)

    4,688      99,011

Bank of America Corp.

    131,629      11,189,781

Bank of Hawaii Corp.

    3,439      154,514

Bank of New York Co. Inc. (The)

    50,179      1,441,643

Banknorth Group Inc.

    11,081      353,595

BB&T Corp. (1)

    35,794      1,386,302

Cathay General Bancorp

    1,512      101,319

Charter One Financial Inc.

    14,462      642,257

Chittenden Corp. (1)

    2,390      81,188

Citizens Banking Corp.

    2,352      73,853

City National Corp.

    2,699      174,085

Colonial BancGroup Inc. (The)

    8,147      157,156

Comerica Inc.

    10,340      604,580

Commerce Bancorp Inc. (1)

    5,027      253,059

Commerce Bancshares Inc.

    4,065      189,470

Community First Bankshares Inc.

    2,365      76,153

Compass Bancshares Inc.

    7,899      348,267

Cullen/Frost Bankers Inc.

    3,312      142,482

East West Bancorp Inc.

    3,208      108,174

Fifth Third Bancorp

    30,660      1,513,378

First Bancorp (1)

    2,379      100,989

First Horizon National Corp.

    7,972      345,586

First Midwest Bancorp Inc. (1)

    3,043      102,762

First National Bankshares of Florida (1)

    3,072      54,651

FirstMerit Corp. (1)

    4,670      121,140

FNB Corp. (1)

    2,983      60,048

Fremont General Corp. (1)

    4,398      82,594

Fulton Financial Corp. (1)

    8,247      169,146

Greater Bay Bancorp (1)

    3,299      86,929

Hibernia Corp. Class A

    9,997      252,924

Hudson United Bancorp

    2,910      99,667

Huntington Bancshares Inc.

    13,962      341,511

Investors Financial Services Corp. (1)

    4,301      196,470

KeyCorp (1)

    26,429      797,627

M&T Bank Corp.

    5,929      552,761

Marshall & Ilsley Corp.

    13,277      509,970

Mellon Financial Corp.

    27,339      751,276

Mercantile Bankshares Corp.

    5,112      232,136

National City Corp.

    38,988      1,423,075

National Commerce Financial Corp.

    13,127      426,627

North Fork Bancorp Inc. (1)

    11,073      432,401

Northern Trust Corp.

    13,339      535,294

Old National Bancorp

    4,318    102,768

Pacific Capital Bancorp

    2,819    78,143

Park National Corp. (1)

    726    85,465

PNC Financial Services Group

    18,171    919,453

Popular Inc.

    15,710    357,245

Provident Bankshares Corp. (1)

    2,122    63,427

Regions Financial Corp.

    29,705    881,941

Republic Bancorp Inc. (1)

    4,166    61,032

Silicon Valley Bancshares (1) (2)

    2,266    82,958

Sky Financial Group Inc.

    6,824    159,340

South Financial Group Inc. (The) (1)

    4,446    120,442

SouthTrust Corp.

    21,452    832,123

Southwest Bancorp of Texas Inc. (1)

    4,146    84,371

State Street Corp.

    21,645    926,622

Sterling Bancshares Inc. (1)

    2,912    37,972

SunTrust Banks Inc.

    17,326    1,142,650

Susquehanna Bancshares Inc.

    3,041    70,764

Synovus Financial Corp.

    16,405    417,835

TCF Financial Corp. (1)

    4,317    260,747

Texas Regional Bancshares Inc. Class A (1)

    1,922    85,510

TrustCo Bank Corp. NY (1)

    4,903    61,974

Trustmark Corp. (1)

    3,299    94,846

U.S. Bancorp

    122,394    3,463,750

UCBH Holdings Inc. (1)

    2,931    114,573

UnionBanCal Corp.

    3,177    184,425

United Bancshares Inc. (1)

    2,652    83,591

Valley National Bancorp (1)

    6,331    157,515

W Holding Co. Inc.

    5,137    84,760

Wachovia Corp.

    84,899    3,761,875

Wells Fargo & Co.

    108,960    6,255,394

Westamerica Bancorp (1)

    2,042    103,591

Whitney Holding Corp. (1)

    2,598    106,154

Wilmington Trust Corp. (1)

    4,305    150,244

Zions Bancorporation

    5,756    348,238
         
          49,308,084

COMMERCIAL SERVICES—0.20%

          

Alliance Data Systems Corp. (2)

    2,876    114,206

MoneyGram International Inc. (2)

    5,713    106,833
         
          221,039

COMPUTERS—0.10%

          

BISYS Group Inc. (The) (1) (2)

    7,694    105,023
         
          105,023

DIVERSIFIED FINANCIAL SERVICES—49.09%

          

Affiliated Managers Group Inc. (1) (2)

    1,897    87,091

American Express Co.

    73,136    3,675,084

AmeriCredit Corp. (1) (2)

    10,183    194,495

Ameritrade Holding Corp. (2)

    18,192    201,749

Bear Stearns Companies Inc. (The)

    6,764    564,253

Capital One Financial Corp.

    15,493    1,073,975

CapitalSource Inc. (1) (2)

    4,294    92,836

Chicago Mercantile Exchange Holdings Inc. (1)

    1,764    221,382

CIT Group Inc.

    13,644    474,265

Citigroup Inc.

    333,875    14,720,549

Countrywide Financial Corp.

    18,029    1,299,891

Doral Financial Corp.

    6,028    236,599

E*TRADE Financial Corp. (2)

    23,501    260,156

Eaton Vance Corp. (1)

    3,867    146,714

Edwards (A.G.) Inc.

    5,132    166,790

Federal Home Loan Mortgage Corp.

    44,462    2,859,351

Federal National Mortgage Association

    56,427    4,004,060

Federated Investors Inc. Class B

    6,176    173,607

Franklin Resources Inc.

    9,037    436,035

Goldman Sachs Group Inc. (The)

    26,614    2,347,089

IndyMac Bancorp Inc. (1)

    3,700    122,914

Investment Technology Group Inc. (1) (2)

    2,762    36,293

Janus Capital Group Inc.

    15,493    205,437

Jefferies Group Inc.

    3,200    100,288

JP Morgan Chase & Co.

    230,064    8,588,289

Knight Trading Group Inc. (1) (2)

    7,167    60,991

LaBranche & Co. Inc. (1) (2)

    1,783    14,603

Legg Mason Inc.

    4,283    336,387

Lehman Brothers Holdings Inc.

    17,869    1,252,617

MBNA Corp.

    72,911    1,800,173

Merrill Lynch & Co. Inc.

    56,882    2,828,173

Morgan Stanley

    64,738    3,193,526

New Century Financial Corp. (1)

    2,179    102,522

Piper Jaffray Companies Inc. (1) (2)

    1,313    53,505

Providian Financial Corp. (2)

    18,895    261,507

Raymond James Financial Inc. (1)

    3,799    88,783

Schwab (Charles) Corp. (The)

    67,114    589,261

SLM Corp.

    28,287    1,072,643

SWS Group Inc.

    837    11,467

T. Rowe Price Group Inc.

    8,178    377,987

W.P. Stewart & Co. Ltd. (1)

    1,485    28,972

Waddell & Reed Financial Inc. Class A (1)

    5,277    102,479
         
          54,464,788

INSURANCE—0.63%

          

Principal Financial Group Inc.

    20,630    701,214
         
          701,214

INTERNET—0.04%

          

NetBank Inc. (1)

    2,905    31,200

Safeguard Scientifics Inc. (1) (2)

    7,979    15,160
         
          46,360

SAVINGS & LOANS—5.14%

          

Anchor BanCorp Wisconsin Inc.

    1,435    36,506

Astoria Financial Corp.

    4,549    155,394

Commercial Federal Corp.

    2,608    68,669

Dime Community Bancshares

    2,170    36,065

Downey Financial Corp.

    1,343    72,186

First Niagara Financial Group Inc. (1)

    5,079    61,913

FirstFed Financial Corp. (2)

    1,068    48,391

Golden West Financial Corp.

    8,419    900,075

GreenPoint Financial Corp.

    7,251    294,608

Harbor Florida Bancshares Inc. (1)

    1,457    41,947

Hudson City Bancorp Inc. (1)

    4,462    154,653

Independence Community Bank Corp.

    5,014    187,223

MAF Bancorp Inc. (1)

    2,001    80,340

New York Community Bancorp Inc. (1)

    15,538    298,951

OceanFirst Financial Corp. (1)

    595    13,774

People’s Bank (1)

    6,016    189,564

PFF Bancorp Inc.

    851    31,249

Provident Financial Services Inc.

    5,000    88,253

Sovereign Bancorp Inc. (1)

    22,095    481,008

Washington Federal Inc. (1)

    5,115    128,131

Washington Mutual Inc.

    55,862    2,167,446

Webster Financial Corp.

    3,444    161,592
         
          5,697,938

SOFTWARE—0.17%

          

SEI Investments Co. (1)

    4,464    136,911

Total System Services Inc. (1)

    2,471    56,191
         
          193,102

TOTAL COMMON STOCKS
(Cost: $105,805,786)

         110,737,548
         

Security

    Shares or Principal
    Value

SHORT-TERM INVESTMENTS—5.93%

          

MONEY MARKET FUNDS—1.51%

          

Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares (3) (5)

    1,057,276    1,057,276

Barclays Global Investors Funds Prime Money Market Fund, Institutional Shares (3) (5)

    551,779    551,779

BlackRock Temp Cash Money Market Fund (3)

    25,322    25,322

Short-Term Investment Co. — Prime Money Market Portfolio (3)

    43,157    43,157
         
          1,677,534

FLOATING RATE NOTES—1.43%

          

Beta Finance Inc.

          

1.30%, 05/04/05 (3) (4)

    30,097    30,093

1.31%, 10/12/04 (3) (4)

    25,081    25,080

1.34%, 09/15/04 (3) (4)

    50,162    50,161

1.42%, 03/15/05 (3) (4)

    25,081    25,094

1.48%, 08/23/04 (3) (4)

    25,081    25,082

Canadian Imperial Bank of Commerce

          

1.24%, 10/07/04 (3)

    37,621    37,620

1.38%, 11/22/04 (3)

    12,540    12,541

1.40%, 10/29/04 (3)

    50,162    50,161

CC USA Inc.

          

1.30%, 05/04/05 (3) (4)

    50,162    50,154

1.61%, 07/29/05 (3) (4)

    50,162    50,147

Depfa Bank PLC

          

1.27%, 06/15/05 (3)

    50,162    50,162

Dorada Finance Inc.

          

1.61%, 07/29/05 (3) (4)

    41,634    41,622

Five Finance Inc.

          

1.42%, 04/29/05 (3) (4)

    40,129    40,126

HBOS Treasury Services PLC

          

1.24%, 04/01/05 (3)

    32,104    32,101

1.58%, 04/22/05 (3)

    50,162    50,162

K2 USA LLC

          

1.34%, 08/16/04 (3) (4)

    12,540    12,540

1.41%, 09/27/04 (3) (4)

    54,175    54,173

1.49%, 06/10/05 (3) (4)

    50,162    50,156

1.61%, 07/25/05 (3) (4)

    25,081    25,076

Links Finance LLC

          

1.33%, 04/15/05 (3)

    50,162    50,155

1.68%, 04/25/05 (3)

    50,162    50,186

Nationwide Building Society

          

1.59%, 07/28/05 (3) (4)

    50,162    50,162

1.63%, 12/09/04 (3)

    41,634    41,391

Northern Rock PLC

          

1.56%, 01/13/05 (3) (4)

    47,654    47,654

Permanent Financing PLC

          

1.31%, 03/10/05 (3)

    50,162    50,162

1.32%, 12/10/04 (3)

    25,081    25,081

1.34%, 06/10/05 (3)

    22,573    22,573

Sigma Finance Inc.

          

1.35%, 11/15/04 (3)

    50,162    50,161

1.52%, 10/07/04 (3)

    50,162    50,160

Tango Finance Corp.

          

1.20%, 05/17/05 (3) (4)

    41,634    41,633

1.23%, 02/25/05 (3) (4)

    28,091    28,087

1.32%, 04/07/05 (3) (4)

    18,409    18,409

1.34%, 01/18/05 (3) (4)

    22,071    22,070

1.42%, 07/25/05 (3) (4)

    50,162    50,157

WhistleJacket Capital LLC

          

1.26%, 10/20/04 (3) (4)

    12,425    12,391

1.34%, 09/15/04 (3) (4)

    25,081    25,080

1.38%, 07/15/05 (3) (4)

    37,621    37,614

1.48%, 06/15/05 (3) (4)

    25,081    25,076

White Pine Finance LLC

          

1.21%, 05/20/05 (3) (4)

    22,573    22,571

1.33%, 04/15/05 (3) (4)

    37,621    37,616

1.33%, 07/05/05 (3) (4)

    25,081    25,076

1.34%, 11/15/04 (3) (4)

    30,097    30,097

1.35%, 06/15/05 (3) (4)

    20,566    20,567

1.40%, 08/26/04 (3) (4)

    25,081    25,081

1.55%, 07/11/05 (3) (4)

    12,540    12,540
         
          1,584,001

COMMERCIAL PAPER—1.08%

          

Alpine Securitization Corp.

          

1.31%, 08/12/04 (3)

    25,081    25,072

Amsterdam Funding Corp.

          

1.30%, 08/13/04 (3)

    37,621    37,606

1.33%, 08/16/04 (3)

    50,162    50,136

1.35%, 08/20/04 (3)

    15,049    15,038

1.37%, 08/24/04 (3)

    17,557    17,542

Barton Capital Corp.

          

1.29%, 08/10/04 (3)

    25,081    25,074

1.30%, 08/13/04 (3)

    20,617    20,609

1.35%, 08/18/04 (3)

    12,540    12,533

Blue Ridge Asset Funding Corp.

          

1.29%, 08/06/04 (3)

    25,081    25,077

Corporate Asset Funding

          

1.42%, 09/03/04 (3)

    15,049    15,030

CRC Funding LLC

          

1.42%, 09/03/04 (3)

    25,081    25,050

Edison Asset Securitization

          

1.07%, 09/21/04 (3)

    25,081    25,044

1.45%, 11/09/04 (3)

    50,162    49,962

1.59%, 12/02/04 (3)

    50,162    49,891

Falcon Asset Securitization Corp.

          

1.29%, 08/09/04 (3)

    47,654    47,642

1.30%, 08/03/04 (3)

    25,081    25,080

1.34%, 08/19/04 (3)

    25,081    25,065

1.37%, 08/24/04 (3)

    20,065    20,048

Ford Credit Auto Receivables

          

1.85%, 01/14/05 (3)

    25,081    24,869

GIRO Funding US Corp.

          

1.55%, 10/15/04 (3)

    32,894    32,789

Grampian Funding LLC

          

1.26%, 10/22/04 (3)

    50,162    50,020

1.44%, 10/27/04 (3)

    50,162    49,989

1.59%, 11/30/04 (3)

    25,081    24,948

Jupiter Securitization Corp.

          

1.30%, 08/12/04 (3)

    25,081    25,072

1.37%, 08/20/04 (3)

    33,559    33,536

Park Avenue Receivables Corp.

          

1.35%, 08/19/04 (3)

    25,081    25,065

Preferred Receivables Funding Corp.

          

1.29%, 08/05/04 (3)

    23,169    23,167

1.36%, 08/23/04 (3)

    25,081    25,061

Receivables Capital Corp.

          

1.30%, 08/12/04 (3)

    17,557    17,550

1.34%, 08/16/04 (3)

    3,000    2,999

1.35%, 08/18/04 (3)

    22,573    22,559

1.35%, 08/19/04 (3)

    8,527    8,522

Scaldis Capital LLC

          

1.34%, 08/16/04 (3)

    50,162    50,136

1.37%, 08/20/04 (3)

    7,524    7,520

1.40%, 08/25/04 (3)

    62,702    62,646

Sydney Capital Corp.

          

1.25%, 10/22/04 (3)

    16,694    16,647

1.31%, 08/12/04 (3)

    20,065    20,057

Thames Asset Global Securitization No. 1 Inc.

          

1.30%, 08/12/04 (3)

    26,472    26,463

1.34%, 08/16/04 (3)

    14,045    14,038

1.36%, 08/20/04 (3)

    37,621    37,596

1.37%, 08/19/04 (3)

    14,012    14,003

1.37%, 08/20/04 (3)

    6,521    6,517

Windmill Funding Corp.

          

1.29%, 08/06/04 (3)

    62,702    62,693
         
          1,195,961

TIME DEPOSITS—0.94%

          

Abbey National Treasury Services PLC

          

1.25%, 01/06/05 (3)

    50,162    50,162

1.33%, 02/10/05 (3)

    25,081    25,079

1.39%, 02/02/05 (3)

    25,081    25,079

1.39%, 04/08/05 (3)

    35,113    35,110

1.40%, 10/25/04 (3)

    50,162    50,160

Bank of New York

          

1.39%, 11/01/04 (3)

    50,162    50,160

1.60%, 12/03/04 (3)

    12,540    12,538

Bank of Nova Scotia

          

1.13%, 10/06/04 (3)

    50,162    50,162

1.24%, 10/07/04 (3)

    37,621    37,621

1.42%, 10/29/04 (3)

    37,621    37,622

National City Bank (Cleveland, Ohio)

          

1.25%, 01/06/05 (3)

    50,162    50,163

1.35%, 06/10/05 (3)

    25,081    25,088

1.36%, 06/23/05 (3)

    50,162    50,148

Norddeutsche Landesbank

          

1.59%, 07/27/05 (3)

    50,162    50,144

Nordea Bank PLC

          

2.11%, 06/07/05 (3)

    50,162    50,154

Prudential Funding LLC

          

1.60%, 12/01/04 (3)

    25,081    24,946

Toronto-Dominion Bank

          

1.22%, 03/23/05 (3)

    87,783    87,774

1.34%, 02/10/05 (3)

    20,065    20,064

1.41%, 11/01/04 (3)

    37,621    37,620

1.77%, 05/10/05 (3)

    25,081    25,079

1.90%, 05/11/05 (3)

    25,081    25,079

UBS Finance (Delaware)

          

1.10%, 09/08/04 (3)

    50,162    50,105

1.11%, 12/17/04 (3)

    75,243    74,925

1.13%, 08/09/04 (3)

    50,162    50,151

1.14%, 09/29/04 (3)

    50,162    50,071
         
          1,045,204

REPURCHASE AGREEMENTS—0.57%

          

Banc of America Securities LLC

          

1.34%, 08/02/04 (3) (6)

    130,405    130,405

Bank of America, N.A.

          

1.37%, 08/02/04 (3) (6)

    250,809    250,809

Goldman Sachs & Co.

          

1.37%, 08/02/04 (3) (6)

    250,809    250,809
         
          632,023

U.S. GOVERNMENT AGENCY NOTES—0.24%

          

Federal Home Loan Mortgage Corp.

          

1.28%, 08/19/04 (3)

    20,065    20,053

1.63%, 04/15/05 (3)

    35,113    35,192

1.80%, 01/18/05 (3)

    23,325    23,129

1.80%, 01/19/05 (3)

    25,081    24,868

2.06%, 05/31/05 (3)

    25,007    24,575

Federal National Mortgage Association

          

1.28%, 08/20/04 (3)

    65,210    65,168

2.33%, 07/22/05 (3)

    75,243    73,522
         
          266,507

MEDIUM-TERM NOTES—0.16%

          

CC USA Inc.

          

1.29%, 04/15/05 (3) (4)

    50,162    50,158

1.51%, 02/15/05 (3) (4)

    32,605    32,633

Dorada Finance Inc.

          

1.24%, 08/09/04 (3) (4)

    12,540    12,540

1.48%, 01/18/05 (3) (4)

    37,621    37,620

K2 USA LLC

          

1.46%, 01/12/05 (3) (4)

    25,081    25,080

Sigma Finance Inc.

          

1.24%, 08/06/04 (3)

    12,540    12,540

WhistleJacket Capital LLC

          

1.32%, 02/04/05 (3) (4)

    12,540    12,539
         
          183,110

TOTAL SHORT-TERM INVESTMENTS
(Cost: $6,584,340)

      6,584,340  
    

TOTAL INVESTMENTS IN SECURITIES — 105.74%
(Cost: $112,390,126) (7)

      117,321,888  

Other Assets, Less Liabilities — (5.74%)

      (6,373,929 )
    

NET ASSETS — 100.00%

    $ 110,947,959  
    
(1) All or a portion of this security represents a security on loan.
(2) Non-income earning security.
(3) All or a portion of this security represents an investment of securities lending collateral.
(4) Security exempt from registration pursuant to Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.
(5) Issuer is an affiliate of the Fund’s investment adviser.
(6) Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 3.61% to 7.00% and maturity dates ranging from 7/1/13 to 7/1/34.
(7) The cost of investments for federal income tax purposes was $113,544,792. Net unrealized appreciation aggregated $3,777,096, of which $7,453,665 represented gross unrealized appreciation on securities and $3,676,569 represented gross unrealized depreciation on securities.

Schedule of Investments (Unaudited)

iSHARES® DOW JONES U.S. REAL ESTATE INDEX FUND

July 31, 2004

 

Security

    Shares
    Value

COMMON STOCKS—99.91%

            

DIVERSIFIED FINANCIAL SERVICES—1.14%

            

Friedman, Billings, Ramsey Group Inc. Class A (1)

    436,802    $ 7,185,393
         
            7,185,393

REAL ESTATE—1.37%

            

LNR Property Corp. (1)

    61,161      3,303,306

St. Joe Company (The)

    123,250      5,302,215
         
            8,605,521

REAL ESTATE INVESTMENT TRUSTS—97.40%

            

Alexandria Real Estate Equities Inc. (1)

    59,401      3,569,406

AMB Property Corp.

    253,225      8,898,326

American Financial Realty Trust (1)

    336,100      4,453,325

Annaly Mortgage Management Inc. (1)

    361,376      5,962,704

Apartment Investment & Management Co. Class A

    288,512      9,223,729

Archstone-Smith Trust

    566,031      16,658,292

Arden Realty Group Inc.

    200,788      6,103,955

AvalonBay Communities Inc.

    219,465      12,772,863

Boston Properties Inc.

    326,383      17,265,661

Brandywine Realty Trust

    139,977      3,821,372

BRE Properties Inc. Class A (1)

    145,447      5,039,739

Camden Property Trust

    109,038      4,906,710

Capital Automotive (1)

    99,122      2,873,547

CarrAmerica Realty Corp.

    166,586      5,079,207

Catellus Development Corp. (1)

    270,327      6,758,175

CBL & Associates Properties Inc.

    94,176      5,189,098

CenterPoint Properties Trust

    143,036      5,489,722

Chelsea Property Group Inc.

    135,309      8,811,322

Colonial Properties Trust (1)

    70,701      2,686,638

Cousins Properties Inc.

    119,977      3,854,861

Crescent Real Estate Equities Co.

    284,860      4,475,151

CRT Properties Inc.

    82,268      1,776,989

Developers Diversified Realty Corp.

    311,958      11,193,053

Duke Realty Corp.

    408,307      12,559,523

Equity Inns Inc.

    139,303      1,263,478

Equity Office Properties Trust

    1,237,110      32,103,005

Equity Residential (1)

    858,836      25,378,604

Essex Property Trust Inc. (1)

    64,042      4,220,368

Federal Realty Investment Trust

    158,065      6,670,343

FelCor Lodging Trust Inc. (1) (2)

    143,353      1,634,224

First Industrial Realty Trust Inc. (1)

    126,337      4,628,988

Gables Residential Trust (1)

    89,680      2,963,924

General Growth Properties Inc. (1)

    667,871      20,089,560

Glenborough Realty Trust Inc.

    97,836      1,788,442

Health Care Property Investors Inc.

    404,672      10,100,613

Health Care REIT Inc. (1)

    157,348      5,077,620

Healthcare Realty Trust Inc.

    131,952    4,766,106

Highwoods Properties Inc.

    164,388    3,813,802

Home Properties Inc.

    94,354    3,547,710

Hospitality Properties Trust

    191,363    7,631,556

Host Marriott Corp. (2)

    823,984    10,670,593

HRPT Properties Trust

    543,386    5,471,897

Impac Mortgage Holdings Inc. (1)

    196,699    4,514,242

iStar Financial Inc.

    337,255    12,815,690

Kilroy Realty Corp. (1)

    87,028    3,080,791

Kimco Realty Corp.

    289,408    13,920,525

Liberty Property Trust

    244,250    9,379,200

Macerich Co. (The)

    179,635    8,604,517

Mack-Cali Realty Corp.

    185,637    7,592,553

Manufactured Home Communities Inc. (1)

    64,641    2,048,473

Meristar Hospitality Corp. (1) (2)

    243,394    1,411,685

Mills Corp.

    131,792    6,009,715

Nationwide Health Properties Inc. (1)

    203,768    3,891,969

New Plan Excel Realty Trust Inc. (1)

    306,995    7,291,131

Novastar Financial Inc. (1)

    76,609    3,072,787

Pan Pacific Retail Properties Inc.

    123,495    6,248,847

Pennsylvania Real Estate Investment Trust

    109,757    3,827,227

Plum Creek Timber Co. Inc.

    561,670    17,625,205

Post Properties Inc. (1)

    121,892    3,411,757

Prentiss Properties Trust

    118,450    4,058,097

ProLogis

    522,834    17,797,269

Public Storage Inc.

    269,031    12,679,431

Rayonier Inc. (1)

    151,781    6,675,328

Realty Income Corp. (1)

    121,426    4,920,182

Reckson Associates Realty Corp. (1)

    204,778    5,674,398

Redwood Trust Inc. (1)

    64,200    3,644,634

Regency Centers Corp.

    173,257    7,363,423

Rouse Co. (The)

    290,748    14,188,502

Shurgard Storage Centers Inc. Class A (1)

    140,670    5,204,790

Simon Property Group Inc.

    561,476    28,977,776

SL Green Realty Corp.

    118,376    5,812,262

Taubman Centers Inc. (1)

    142,792    3,298,495

Thornburg Mortgage Inc. (1)

    248,695    6,896,312

Trizec Properties Inc. (1)

    279,075    4,479,154

United Dominion Realty Trust Inc.

    391,973    7,600,356

Ventas Inc.

    257,146    6,562,366

Vornado Realty Trust

    330,959    19,225,408

Washington Real Estate Investment Trust (1)

    128,016    3,576,767

Weingarten Realty Investors

    243,498    7,499,738
         
          612,125,203

TOTAL COMMON STOCKS
(Cost: $642,023,838)

         627,916,117
         

Security

    Shares or Principal
    Value

SHORT-TERM INVESTMENTS—14.38%

          

MONEY MARKET FUNDS—3.65%

          

Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares (3) (5)

    14,386,215    14,386,215

Barclays Global Investors Funds Prime Money Market Fund, Institutional Shares (3) (5)

    7,585,386    7,585,386

BlackRock Temp Cash Money Market Fund (3)

    348,111    348,111

Short-Term Investment Co. - Prime Money Market Portfolio (3)

    593,287    593,287
         
          22,912,999

FLOATING RATE NOTES—3.46%

          

Beta Finance Inc.

          

1.30%, 05/04/05 (3) (4)

    413,748    413,686

1.31%, 10/12/04 (3) (4)

    344,790    344,784

1.34%, 09/15/04 (3) (4)

    689,581    689,572

1.42%, 03/15/05 (3) (4)

    344,790    344,961

1.48%, 08/23/04 (3) (4)

    344,790    344,807

Canadian Imperial Bank of Commerce

          

1.24%, 10/07/04 (3)

    517,185    517,171

1.38%, 11/22/04 (3)

    172,395    172,399

1.40%, 10/29/04 (3)

    689,581    689,576

CC USA Inc.

          

1.30%, 05/04/05 (3) (4)

    689,581    689,477

1.61%, 07/29/05 (3) (4)

    689,581    689,375

Depfa Bank PLC

          

1.27%, 06/15/05 (3)

    689,581    689,581

Dorada Finance Inc.

          

1.61%, 07/29/05 (3) (4)

    572,352    572,182

Five Finance Inc.

          

1.42%, 04/29/05 (3) (4)

    551,664    551,624

HBOS Treasury Services PLC

          

1.24%, 04/01/05 (3)

    441,332    441,302

1.58%, 04/22/05 (3)

    689,581    689,581

K2 USA LLC

          

1.34%, 08/16/04 (3) (4)

    172,395    172,394

1.41%, 09/27/04 (3) (4)

    744,747    744,730

1.49%, 06/10/05 (3) (4)

    689,581    689,508

1.61%, 07/25/05 (3) (4)

    344,790    344,723

Links Finance LLC

          

1.33%, 04/15/05 (3)

    689,581    689,484

1.68%, 04/25/05 (3)

    689,581    689,908

Nationwide Building Society

          

1.59%, 07/28/05 (3) (4)

    689,581    689,581

1.63%, 12/09/04 (3)

    572,352    569,009

Northern Rock PLC

          

1.56%, 01/13/05 (3) (4)

    655,101    655,101

Permanent Financing PLC

          

1.31%, 03/10/05 (3)

    689,581    689,581

1.32%, 12/10/04 (3)

    344,790    344,790

1.34%, 06/10/05 (3)

    310,311    310,311

Sigma Finance Inc.

          

1.35%, 11/15/04 (3)

    689,581    689,565

1.52%, 10/07/04 (3)

    689,581    689,556

Tango Finance Corp.

          

1.20%, 05/17/05 (3) (4)

    572,352    572,329

1.23%, 02/25/05 (3) (4)

    386,165    386,122

1.32%, 04/07/05 (3) (4)

    253,076    253,059

1.34%, 01/18/05 (3) (4)

    303,415    303,401

1.42%, 07/25/05 (3) (4)

    689,581    689,513

WhistleJacket Capital LLC

          

1.26%, 10/20/04 (3) (4)

    170,809    170,337

1.34%, 09/15/04 (3) (4)

    344,790    344,782

1.38%, 07/15/05 (3) (4)

    517,185    517,086

1.48%, 06/15/05 (3) (4)

    344,790    344,722

White Pine Finance LLC

          

1.21%, 05/20/05 (3) (4)

    310,311    310,286

1.33%, 04/15/05 (3) (4)

    517,185    517,113

1.33%, 07/05/05 (3) (4)

    344,790    344,721

1.34%, 11/15/04 (3) (4)

    413,748    413,749

1.35%, 06/15/05 (3) (4)

    282,728    282,728

1.40%, 08/26/04 (3) (4)

    344,790    344,787

1.55%, 07/11/05 (3) (4)

    172,395    172,377
         
          21,775,431

COMMERCIAL PAPER—2.62%

          

Alpine Securitization Corp.

          

1.31%, 08/12/04 (3)

    344,790    344,665

Amsterdam Funding Corp.

          

1.30%, 08/13/04 (3)

    517,185    516,980

1.33%, 08/16/04 (3)

    689,581    689,224

1.35%, 08/20/04 (3)

    206,874    206,735

1.37%, 08/24/04 (3)

    241,353    241,151

Barton Capital Corp.

          

1.29%, 08/10/04 (3)

    344,790    344,691

1.30%, 08/13/04 (3)

    283,431    283,319

1.35%, 08/18/04 (3)

    172,395    172,292

Blue Ridge Asset Funding Corp.

          

1.29%, 08/06/04 (3)

    344,790    344,741

Corporate Asset Funding

          

1.42%, 09/03/04 (3)

    206,874    206,613

CRC Funding LLC

          

1.42%, 09/03/04 (3)

    344,790    344,355

Edison Asset Securitization

          

1.07%, 09/21/04 (3)

    344,790    344,278

1.45%, 11/09/04 (3)

    689,581    686,831

1.59%, 12/02/04 (3)

    689,581    685,865

Falcon Asset Securitization Corp.

          

1.29%, 08/09/04 (3)

    655,101    654,937

1.30%, 08/03/04 (3)

    344,790    344,778

1.34%, 08/19/04 (3)

    344,790    344,572

1.37%, 08/24/04 (3)

    275,832    275,601

Ford Credit Auto Receivables

          

1.85%, 01/14/05 (3)

    344,790    341,867

GIRO Funding US Corp.

          

1.55%, 10/15/04 (3)

    452,192    450,752

Grampian Funding LLC

          

1.26%, 10/22/04 (3)

    689,581    687,633

1.44%, 10/27/04 (3)

    689,581    687,208

1.59%, 11/30/04 (3)

    344,790    342,963

Jupiter Securitization Corp.

          

1.30%, 08/12/04 (3)

    344,790    344,666

1.37%, 08/20/04 (3)

    461,336    461,020

Park Avenue Receivables Corp.

          

1.35%, 08/19/04 (3)

    344,790    344,570

Preferred Receivables Funding Corp.

          

1.29%, 08/05/04 (3)

    318,503    318,470

1.36%, 08/23/04 (3)

    344,790    344,517

Receivables Capital Corp.

          

1.30%, 08/12/04 (3)

    241,353    241,266

1.34%, 08/16/04 (3)

    41,237    41,215

1.35%, 08/18/04 (3)

    310,311    310,126

1.35%, 08/19/04 (3)

    117,229    117,154

Scaldis Capital LLC

          

1.34%, 08/16/04 (3)

    689,581    689,221

1.37%, 08/20/04 (3)

    103,437    103,366

1.40%, 08/25/04 (3)

    861,976    861,205

Sydney Capital Corp.

          

1.25%, 10/22/04 (3)

    229,492    228,847

1.31%, 08/12/04 (3)

    275,832    275,732

Thames Asset Global Securitization No. 1 Inc.

          

1.30%, 08/12/04 (3)

    363,919    363,788

1.34%, 08/16/04 (3)

    193,083    192,982

1.36%, 08/20/04 (3)

    517,185    516,834

1.37%, 08/19/04 (3)

    192,621    192,496

1.37%, 08/20/04 (3)

    89,645    89,584

Windmill Funding Corp.

          

1.29%, 08/06/04 (3)

    861,976    861,852
         
          16,440,962

TIME DEPOSITS—2.29%

          

Abbey National Treasury Services PLC

          

1.25%, 01/06/05 (3)

    689,581    689,581

1.33%, 02/10/05 (3)

    344,790    344,763

1.39%, 02/02/05 (3)

    344,790    344,764

1.39%, 04/08/05 (3)

    482,706    482,657

1.40%, 10/25/04 (3)

    689,581    689,557

Bank of New York

          

1.39%, 11/01/04 (3)

    689,581    689,563

1.60%, 12/03/04 (3)

    172,395    172,366

Bank of Nova Scotia

          

1.13%, 10/06/04 (3)

    689,581    689,581

1.24%, 10/07/04 (3)

    517,185    517,176

1.42%, 10/29/04 (3)

    517,185    517,195

National City Bank (Cleveland, Ohio)

          

1.25%, 01/06/05 (3)

    689,581    689,595

1.35%, 06/10/05 (3)

    344,790    344,882

1.36%, 06/23/05 (3)

    689,581    689,396

Norddeutsche Landesbank

          

1.59%, 07/27/05 (3)

    689,581    689,342

Nordea Bank PLC

          

2.11%, 06/07/05 (3)

    689,581    689,465

Prudential Funding LLC

          

1.60%, 12/01/04 (3)

    344,790    342,936

Toronto-Dominion Bank

          

1.22%, 03/23/05 (3)

    1,206,766    1,206,631

1.34%, 02/10/05 (3)

    275,832    275,810

1.41%, 11/01/04 (3)

    517,185    517,173

1.77%, 05/10/05 (3)

    344,790    344,764

1.90%, 05/11/05 (3)

    344,790    344,764

UBS Finance (Delaware)

          

1.10%, 09/08/04 (3)

    689,581    688,801

1.11%, 12/17/04 (3)

    1,034,371    1,030,001

1.13%, 08/09/04 (3)

    689,581    689,429

1.14%, 09/29/04 (3)

    689,581    688,320
         
          14,368,512

REPURCHASE AGREEMENTS—1.38%

          

Banc of America Securities LLC

          

1.34%, 08/02/04 (3) (6)

    1,792,898    1,792,898

Bank of America, N.A.

          

1.37%, 08/02/04 (3) (6)

    3,447,903    3,447,903

Goldman Sachs & Co.

              

1.37%, 08/02/04 (3) (6)

    3,447,903      3,447,903  
         
            8,688,704  

U.S. GOVERNMENT AGENCY NOTES—0.58%

              

Federal Home Loan Mortgage Corp.

              

1.28%, 08/19/04 (3)

    275,832      275,665  

1.63%, 04/15/05 (3)

    482,706      483,788  

1.80%, 01/18/05 (3)

    320,655      317,946  

1.80%, 01/19/05 (3)

    344,790      341,860  

2.06%, 05/31/05 (3)

    343,777      337,836  

Federal National Mortgage Association

              

1.28%, 08/20/04 (3)

    896,455      895,881  

2.33%, 07/22/05 (3)

    1,034,371      1,010,722  
         
            3,663,698  

MEDIUM-TERM NOTES—0.40%

              

CC USA Inc.

              

1.29%, 04/15/05 (3) (4)

    689,581      689,532  

1.51%, 02/15/05 (3) (4)

    448,227      448,605  

Dorada Finance Inc.

              

1.24%, 08/09/04 (3) (4)

    172,395      172,395  

1.48%, 01/18/05 (3) (4)

    517,185      517,174  

K2 USA LLC

              

1.46%, 01/12/05 (3) (4)

    344,790      344,775  

Sigma Finance Inc.

              

1.24%, 08/06/04 (3)

    172,395      172,395  

WhistleJacket Capital LLC

              

1.32%, 02/04/05 (3) (4)

    172,395      172,378  
         
            2,517,254  

TOTAL SHORT-TERM INVESTMENTS
(Cost: $90,367,560)

           90,367,560  
         

TOTAL INVESTMENTS IN SECURITIES — 114.29%
(Cost: $732,391,398) (7)

           718,283,677  

Other Assets, Less Liabilities — (14.29%)

           (89,804,005 )
         

NET ASSETS — 100.00%

         $ 628,479,672  
         
(1) All or a portion of this security represents a security on loan.
(2) Non-income earning security.
(3) All or a portion of this security represents an investment of securities lending collateral.
(4) Security exempt from registration pursuant to Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.
(5) Issuer is an affiliate of the Fund’s investment adviser.
(6) Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 3.61% to 7.00% and maturity dates ranging from 7/1/13 to 7/1/34.
(7) The cost of investments for federal income tax purposes was $732,594,533. Net unrealized depreciation aggregated $14,310,856, of which $5,374,089 represented gross unrealized appreciation on securities and $19,684,945 represented gross unrealized depreciation on securities.

Schedule of Investments (Unaudited)

iSHARES® DOW JONES SELECT DIVIDEND INDEX FUND

July 31, 2004

 

Security

    Shares
    Value

COMMON STOCKS—99.86%

            

AGRICULTURE—5.75%

            

Altria Group Inc.

    1,899,671    $ 90,424,340

Universal Corp.

    1,263,200      60,924,136
         
            151,348,476

AUTO MANUFACTURERS—2.49%

            

General Motors Corp.

    1,515,877      65,394,934
         
            65,394,934

BANKS—32.43%

            

AmSouth Bancorp

    1,521,764      37,328,871

Associated Bancorp

    1,815,701      54,670,757

Bank of America Corp.

    1,552,777      132,001,573

Citizens Banking Corp.

    1,323,542      41,559,219

Colonial BancGroup Inc. (The)

    1,237,579      23,872,899

Comerica Inc.

    1,424,167      83,271,045

FirstMerit Corp.

    1,515,731      39,318,062

FNB Corp.

    1,444,883      29,085,495

Hibernia Corp. Class A

    1,179,943      29,852,558

Hudson United Bancorp

    1,253,765      42,941,451

Huntington Bancshares Inc.

    1,201,900      29,398,474

KeyCorp

    1,629,167      49,168,260

National City Corp.

    1,918,180      70,013,570

PNC Financial Services Group

    1,417,487      71,724,842

Provident Bankshares Corp.

    1,247,589      37,290,435

Sky Financial Group Inc.

    1,250,767      29,205,409

Whitney Holding Corp.

    1,276,769      52,168,781
         
            852,871,701

CHEMICALS—11.23%

            

Dow Chemical Co. (The)

    1,264,390      50,436,517

Eastman Chemical Co.

    1,748,936      78,142,460

Lubrizol Corp.

    1,291,594      44,727,900

Lyondell Chemical Co.

    2,171,911      39,485,342

PPG Industries Inc.

    1,051,875      62,008,031

RPM International Inc.

    1,359,233      20,456,457
         
            295,256,707

COMMERCIAL SERVICES—1.69%

            

Donnelley (R.R.) & Sons Co.

    1,403,134      44,535,473
         
            44,535,473

DISTRIBUTION & WHOLESALE—1.95%

            

Genuine Parts Co.

    1,359,580      51,296,953
         
            51,296,953

DIVERSIFIED FINANCIAL SERVICES—2.05%

          

JP Morgan Chase & Co.

    1,441,259    53,802,198
         
          53,802,198

ELECTRIC—19.62%

          

Black Hills Corp.

    1,607,572    44,401,139

DTE Energy Co.

    1,999,733    80,329,275

Duquesne Light Holdings Inc.

    2,155,785    40,895,241

Energy East Corp.

    1,659,707    40,430,463

FirstEnergy Corp.

    1,612,261    63,039,405

FPL Group Inc.

    1,422,944    95,806,820

NiSource Inc.

    1,670,733    34,584,173

Pinnacle West Capital Corp.

    1,745,995    70,712,798

PPL Corp.

    989,265    45,852,433
         
          516,051,747

FOREST PRODUCTS & PAPER—1.36%

          

MeadWestvaco Corp.

    1,198,898    35,799,094
         
          35,799,094

GAS—2.62%

          

Nicor Inc.

    2,083,338    68,979,321
         
          68,979,321

INSURANCE—4.86%

          

Lincoln National Corp.

    1,333,321    58,266,128

Unitrin Inc.

    1,672,426    69,656,543
         
          127,922,671

OIL & GAS—3.55%

          

Marathon Oil Corp.

    1,216,748    45,834,897

Occidental Petroleum Corp.

    963,535    47,473,369
         
          93,308,266

PACKAGING & CONTAINERS—1.33%

          

Sonoco Products Co.

    1,345,140    34,852,577
         
          34,852,577

PHARMACEUTICALS—1.37%

          

Bristol-Myers Squibb Co.

    1,569,952    35,951,901
         
          35,951,901

SAVINGS & LOANS—4.50%

          

People’s Bank

    2,708,465    85,343,732

Washington Federal Inc.

    1,321,151    33,094,833
         
          118,438,565

TELECOMMUNICATIONS—3.06%

          

BellSouth Corp.

    1,378,203    37,335,519

SBC Communications Inc.

    1,703,390    43,163,903
         
          80,499,422

TOTAL COMMON STOCKS
(Cost: $2,592,334,923)

         2,626,310,006
         

 

Security

    Shares or Principal
    Value

SHORT-TERM INVESTMENTS—0.09%

            

MONEY MARKET FUNDS—0.09%

            

Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares (1)

    2,513,072      2,513,072
         
            2,513,072

TOTAL SHORT-TERM INVESTMENTS
(Cost: $2,513,072)

           2,513,072
         

TOTAL INVESTMENTS IN SECURITIES — 99.95%
(Cost: $2,594,847,995) (2)

           2,628,823,078

Other Assets, Less Liabilities — 0.05%

           1,252,602
         

NET ASSETS — 100.00%

         $ 2,630,075,680
         
(1) Issuer is an affiliate of the Fund’s investment adviser.
(2) The cost of investments for federal income tax purposes was $2,597,446,199. Net unrealized appreciation aggregated $31,376,879, of which $83,826,599 represented gross unrealized appreciation on securities and $52,449,720 represented gross unrealized depreciation on securities.

Schedule of Investments (Unaudited)

iSHARES® DOW JONES TRANSPORTATION AVERAGE INDEX FUND

July 31, 2004

 

Security

    Shares
    Value

COMMON STOCKS—100.04%

            

AIRLINES—7.82%

            

Alaska Air Group Inc. (1)

    12,500    $ 260,375

AMR Corp. (1)

    52,113      439,313

Continental Airlines Inc. Class B (1)

    53,582      481,702

Delta Air Lines Inc. (1)

    51,119      265,308

JetBlue Airways Corp. (1)

    11,000      261,910

SkyWest Inc.

    18,000      254,340

Southwest Airlines Co.

    60,954      882,004
         
            2,844,952

TRANSPORTATION—88.14%

            

Alexander & Baldwin Inc.

    48,749      1,602,867

Burlington Northern Santa Fe Corp.

    50,416      1,788,760

CH Robinson Worldwide Inc.

    40,504      1,771,240

CNF Inc.

    55,806      2,302,556

CSX Corp.

    53,805      1,684,096

Expeditors International Washington Inc.

    57,769      2,681,059

FedEx Corp.

    52,587      4,305,824

Hunt (J.B.) Transport Services Inc.

    46,650      1,791,826

Norfolk Southern Corp.

    66,143      1,765,357

Ryder System Inc.

    53,816      2,308,706

Union Pacific Corp.

    45,603      2,569,273

United Parcel Service Inc. Class B

    55,559      3,998,026

USF Corp.

    47,062      1,670,701

Yellow Roadway Corp. (1)

    41,882      1,822,286
         
            32,062,577

TRUCKING & LEASING—4.08%
GATX Corp.

    58,255      1,484,337
         
            1,484,337

TOTAL COMMON STOCKS
(Cost: $35,740,656)

           36,391,866
         

Security

    Shares or Principal
    Value

SHORT-TERM INVESTMENTS—0.04%

            

MONEY MARKET FUNDS—0.04%

            

Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares (2)

    15,429      15,429
         
            15,429

TOTAL SHORT-TERM INVESTMENTS
(Cost: $15,429)

      15,429  
    

TOTAL INVESTMENTS IN SECURITIES — 100.08%
(Cost: $35,756,085) (3)

      36,407,295  

Other Assets, Less Liabilities — (0.08%)

      (30,153 )
    

NET ASSETS — 100.00%

    $ 36,377,142  
    
(1) Non-income earning security.
(2) Issuer is an affiliate of the Fund’s investment adviser.
(3) The cost of investments for federal income tax purposes was $35,773,522. Net unrealized appreciation aggregated $633,773, of which $1,930,173 represented gross unrealized appreciation on securities and $1,296,400 represented gross unrealized depreciation on securities.

Schedule of Investments (Unaudited)

iSHARES® MORNINGSTAR LARGE CORE INDEX FUND

July 31, 2004

 

Security

    Shares
    Value

COMMON STOCKS—99.87%

            

ADVERTISING—0.45%

            

Omnicom Group Inc.

    1,448    $ 104,285
         
            104,285

AEROSPACE & DEFENSE—3.98%

            

Boeing Co. (The)

    5,751      291,863

General Dynamics Corp.

    1,272      125,699

Lockheed Martin Corp.

    2,736      144,981

United Technologies Corp.

    3,927      367,174
         
            929,717

APPAREL—0.44%

            

Nike Inc. Class B

    1,424      103,539
         
            103,539

AUTO MANUFACTURERS—0.35%

            

PACCAR Inc.

    1,344      80,586
         
            80,586

BANKS—5.35%

            

Fifth Third Bancorp

    3,640      179,670

M&T Bank Corp.

    704      65,634

Mellon Financial Corp.

    3,256      89,475

Northern Trust Corp.

    1,584      63,566

State Street Corp.

    2,576      110,279

Wells Fargo & Co.

    12,905      740,876
         
            1,249,500

BEVERAGES—4.33%

            

Anheuser-Busch Companies Inc.

    6,145      318,925

Coca-Cola Enterprises Inc.

    1,904      38,842

PepsiCo Inc.

    13,053      652,650
         
            1,010,417

BUILDING MATERIALS—0.44%

            

Masco Corp.

    3,360      101,606
         
            101,606

CHEMICALS—0.42%

            

Praxair Inc.

    2,488      98,152
         
            98,152

COMMERCIAL SERVICES—1.41%

            

Accenture Ltd. (1)

    3,360      82,757

Cendant Corp.

    7,824      179,013

McKesson Corp.

    2,112      67,943
         
            329,713

COMPUTERS—5.10%

            

Electronic Data Systems Corp.

    3,712      68,598

International Business Machines Corp.

    12,891      1,122,419
         
            1,191,017

COSMETICS & PERSONAL CARE—7.50%

            

Colgate-Palmolive Co.

    3,774      200,777

Gillette Co. (The)

    6,968    271,613

Kimberly-Clark Corp.

    3,840    246,029

Procter & Gamble Co.

    19,771    1,031,058
         
          1,749,477

DIVERSIFIED FINANCIAL SERVICES—5.40%

          

American Express Co.

    8,657    435,014

Capital One Financial Corp.

    1,840    127,549

Countrywide Financial Corp.

    2,144    154,582

Franklin Resources Inc.

    1,072    51,724

Goldman Sachs Group Inc. (The)

    3,153    278,063

MBNA Corp.

    8,624    212,927
         
          1,259,859

ELECTRONICS—0.34%

          

Agilent Technologies Inc. (1)

    3,376    80,383
         
          80,383

ENVIRONMENTAL CONTROL—0.54%

          

Waste Management Inc.

    4,448    125,167
         
          125,167

FOOD—1.04%

          

General Mills Inc.

    2,280    102,372

Hershey Foods Corp.

    1,336    64,716

Kellogg Co.

    1,816    75,655
         
          242,743

HEALTH CARE-PRODUCTS—6.38%

          

Baxter International Inc.

    4,696    141,209

Becton, Dickinson & Co.

    1,944    91,815

Johnson & Johnson

    22,708    1,255,071
         
          1,488,095

HEALTH CARE-SERVICES—1.87%

          

Aetna Inc.

    1,168    100,214

Anthem Inc. (1)(2)

    1,064    87,748

HCA Inc. (2)

    3,320    128,318

WellPoint Health Networks Inc. (1)

    1,192    120,511
         
          436,791

HOUSEHOLD PRODUCTS & WARES—0.60%

          

Clorox Co.

    1,192    59,326

Fortune Brands Inc.

    1,120    80,842
         
          140,168

INSURANCE—7.17%

          

AFLAC Inc.

    3,896    154,437

American International Group Inc.

    17,525    1,238,141

Marsh & McLennan Cos. Inc.

    3,800    168,644

Progressive Corp. (The)

    1,464    112,172
         
          1,673,394

LEISURE TIME—0.59%

          

Carnival Corp.

    2,960    137,966
         
          137,966

LODGING—0.29%

          

Marriott International Inc. Class A

    1,392    67,930
         
          67,930

MACHINERY—1.34%

          

Caterpillar Inc.

    2,610    191,809

Deere & Co.

    1,912    120,093
         
          311,902

MANUFACTURING—16.51%

          

General Electric Co.

    79,742    2,651,421

Illinois Tool Works Inc.

    2,040    184,661

Ingersoll-Rand Co. Class A

    1,328    91,220

3M Co.

    5,483    451,580

Tyco International Ltd.

    15,331    475,261
         
          3,854,143

MEDIA—5.11%

          

Comcast Corp. Class A (1)

    9,603    263,122

Comcast Corp. Special Class A (1) (2)

    6,776    181,597

Gannett Co. Inc.

    2,088    173,596

McGraw-Hill Companies Inc. (The)

    1,464    109,888

Tribune Co.

    1,664    70,637

Viacom Inc. Class A

    296    10,079

Viacom Inc. Class B

    11,439    384,236
         
          1,193,155

MINING—0.91%

          

Alcoa Inc.

    6,664    213,448
         
          213,448

OFFICE & BUSINESS EQUIPMENT—0.36%

          

Xerox Corp. (1) (2)

    6,136    85,045
         
          85,045

OIL & GAS—0.99%

          

Apache Corp.

    2,496    116,139

Burlington Resources Inc.

    3,032    115,731
         
          231,870

OIL & GAS SERVICES—0.46%

          

Halliburton Co.

    3,376    107,188
         
          107,188

PHARMACEUTICALS—3.83%

          

Abbott Laboratories

    11,923    469,170

Medco Health Solutions Inc. (1)

    2,080    63,024

Wyeth

    10,190    360,726
         
          892,920

REAL ESTATE INVESTMENT TRUSTS—0.31%

          

Simon Property Group Inc.

    1,408    72,667
         
          72,667

RETAIL—7.19%

          

Costco Wholesale Corp.

    3,520    143,123

CVS Corp.

    3,048    127,620

Gap Inc. (The)

    5,032    114,226

Home Depot Inc.

    17,142    578,028

McDonald’s Corp.

    9,618    264,495

Target Corp.

    6,344    276,598

TJX Companies Inc.

    3,808    89,374

Yum! Brands Inc.

    2,216    85,072
         
          1,678,536

SAVINGS & LOANS—0.46%

          

Golden West Financial Corp.

    1,000    106,910
         
          106,910

SOFTWARE—2.57%

          

Automatic Data Processing Inc.

    4,528    190,085

Computer Associates International Inc.

    3,568    90,056

Oracle Corp. (1)

    30,300    318,453
         
          598,594

TELECOMMUNICATIONS—3.74%

          

Corning Inc. (1)

    10,520    130,027

Lucent Technologies Inc. (1) (2)

    32,856    100,211

Motorola Inc.

    17,910    285,306

Nextel Communications Inc. Class A (1)

    8,232    187,360

Sprint Corp. (FON Group)

    9,048    169,017
         
          871,921

TRANSPORTATION—2.10%

          

FedEx Corp.

    2,128    174,241

United Parcel Service Inc. Class B

    4,401    316,696
         
          490,937

TOTAL COMMON STOCKS (Cost: $23,950,829)

         23,309,741
         

Security

    Shares or Principal
    Value

SHORT-TERM INVESTMENTS—1.01%

          

MONEY MARKET FUNDS—0.30%

          

Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares (3) (5)

    49,241    49,241

Barclays Global Investors Funds Prime Money Market Fund, Institutional Shares (3) (5)

    18,548    18,548

BlackRock Temp Cash Money Market Fund (3)

    851    851

Short-Term Investment Co. - Prime Money Market Portfolio (3)

    1,451    1,451
         
          70,091

FLOATING RATE NOTES—0.23%

          

Beta Finance Inc.

          

1.30%, 05/04/05 (3) (4)

    1,012    1,012

1.31%, 10/12/04 (3) (4)

    843    843

1.34%, 09/15/04 (3) (4)

    1,686    1,686

1.42%, 03/15/05 (3) (4)

    843    843

1.48%, 08/23/04 (3) (4)

    843    843

Canadian Imperial Bank of Commerce

          

1.24%, 10/07/04 (3)

    1,265    1,265

1.38%, 11/22/04 (3)

    422    422

1.40%, 10/29/04 (3)

    1,686    1,686

CC USA Inc.

          

1.30%, 05/04/05 (3) (4)

    1,686    1,686

1.61%, 07/29/05 (3) (4)

    1,686    1,686

Depfa Bank PLC

          

1.27%, 06/15/05 (3)

    1,686    1,687

Dorada Finance Inc.

          

1.61%, 07/29/05 (3) (4)

    1,399    1,399

Five Finance Inc.

          

1.42%, 04/29/05 (3) (4)

    1,349    1,349

HBOS Treasury Services PLC

          

1.24%, 04/01/05 (3)

    1,079    1,079

1.58%, 04/22/05 (3)

    1,686    1,687

K2 USA LLC

          

1.34%, 08/16/04 (3) (4)

    422    422

1.41%, 09/27/04 (3) (4)

    1,821    1,821

1.49%, 06/10/05 (3) (4)

    1,686    1,686

1.61%, 07/25/05 (3) (4)

    843    843

Links Finance LLC

          

1.33%, 04/15/05 (3)

    1,686    1,686

1.68%, 04/25/05 (3)

    1,686    1,687

Nationwide Building Society

          

1.59%, 07/28/05 (3) (4)

    1,686    1,687

1.63%, 12/09/04 (3)

    1,399    1,391

Northern Rock PLC

          

1.56%, 01/13/05 (3) (4)

    1,602    1,602

Permanent Financing PLC

          

1.31%, 03/10/05 (3)

    1,686    1,687

1.32%, 12/10/04 (3)

    843    843

1.34%, 06/10/05 (3)

    759    759

Sigma Finance Inc.

          

1.35%, 11/15/04 (3)

    1,686    1,686

1.52%, 10/07/04 (3)

    1,686    1,686

Tango Finance Corp.

          

1.20%, 05/17/05 (3) (4)

    1,399    1,399

1.23%, 02/25/05 (3) (4)

    944    944

1.32%, 04/07/05 (3) (4)

    619    619

1.34%, 01/18/05 (3) (4)

    742    742

1.42%, 07/25/05 (3) (4)

    1,686    1,686

WhistleJacket Capital LLC

          

1.26%, 10/20/04 (3) (4)

    418    416

1.34%, 09/15/04 (3) (4)

    843    843

1.38%, 07/15/05 (3) (4)

    1,265    1,264

1.48%, 06/15/05 (3) (4)

    843    843

White Pine Finance LLC

          

1.21%, 05/20/05 (3) (4)

    759    759

1.33%, 04/15/05 (3) (4)

    1,265    1,265

1.33%, 07/05/05 (3) (4)

    843    843

1.34%, 11/15/04 (3) (4)

    1,012    1,012

1.35%, 06/15/05 (3) (4)

    691    692

1.40%, 08/26/04 (3) (4)

    843    843

1.55%, 07/11/05 (3) (4)

    422    421
         
          53,250

COMMERCIAL PAPER—0.17%

          

Alpine Securitization Corp.

          

1.31%, 08/12/04 (3)

    843    843

Amsterdam Funding Corp.

          

1.30%, 08/13/04 (3)

    1,265    1,264

1.33%, 08/16/04 (3)

    1,686    1,685

1.35%, 08/20/04 (3)

    506    505

1.37%, 08/24/04 (3)

    590    590

Barton Capital Corp.

          

1.29%, 08/10/04 (3)

    843    843

1.30%, 08/13/04 (3)

    693    693

1.35%, 08/18/04 (3)

    422    421

Blue Ridge Asset Funding Corp.

          

1.29%, 08/06/04 (3)

    843    843

Corporate Asset Funding

          

1.42%, 09/03/04 (3)

    506    505

CRC Funding LLC

          

1.42%, 09/03/04 (3)

    843    842

Edison Asset Securitization

          

1.07%, 09/21/04 (3)

    843    842

1.45%, 11/09/04 (3)

    1,686    1,679

1.59%, 12/02/04 (3)

    1,686    1,677

Falcon Asset Securitization Corp.

          

1.29%, 08/09/04 (3)

    1,602    1,602

1.30%, 08/03/04 (3)

    843    843

1.34%, 08/19/04 (3)

    843    843

1.37%, 08/24/04 (3)

    674    674

Ford Credit Auto Receivables

          

1.85%, 01/14/05 (3)

    843    836

GIRO Funding US Corp.

          

1.55%, 10/15/04 (3)

    1,106    1,102

Grampian Funding LLC

          

1.26%, 10/22/04 (3)

    1,686    1,681

1.44%, 10/27/04 (3)

    1,686    1,680

1.59%, 11/30/04 (3)

    843    839

Jupiter Securitization Corp.

          

1.30%, 08/12/04 (3)

    843    843

1.37%, 08/20/04 (3)

    1,128    1,127

Park Avenue Receivables Corp.

          

1.35%, 08/19/04 (3)

    843    843

Preferred Receivables Funding Corp.

          

1.29%, 08/05/04 (3)

    779    779

1.36%, 08/23/04 (3)

    843    842

Receivables Capital Corp.

          

1.30%, 08/12/04 (3)

    590    590

1.34%, 08/16/04 (3)

    101    101

1.35%, 08/18/04 (3)

    759    758

1.35%, 08/19/04 (3)

    287    286

Scaldis Capital LLC

          

1.34%, 08/16/04 (3)

    1,686    1,685

1.37%, 08/20/04 (3)

    253    253

1.40%, 08/25/04 (3)

    2,108    2,106

Sydney Capital Corp.

          

1.25%, 10/22/04 (3)

    561    560

1.31%, 08/12/04 (3)

    674    674

Thames Asset Global Securitization No. 1 Inc.

          

1.30%, 08/12/04 (3)

    890    890

1.34%, 08/16/04 (3)

    472    472

1.36%, 08/20/04 (3)

    1,265    1,264

1.37%, 08/19/04 (3)

    471    471

1.37%, 08/20/04 (3)

    219    219

Windmill Funding Corp.

          

1.29%, 08/06/04 (3)

    2,108    2,107
         
          40,202

TIME DEPOSITS—0.15%

          

Abbey National Treasury Services PLC

          

1.25%, 01/06/05 (3)

    1,686    1,687

1.33%, 02/10/05 (3)

    829    829

1.39%, 02/02/05 (3)

    843    843

1.39%, 04/08/05 (3)

    1,180    1,180

1.40%, 10/25/04 (3)

    1,686    1,686

Bank of New York

          

1.39%, 11/01/04 (3)

    1,686    1,686

1.60%, 12/03/04 (3)

    422    421

Bank of Nova Scotia

          

1.13%, 10/06/04 (3)

    1,686    1,687

1.24%, 10/07/04 (3)

    1,265    1,265

1.42%, 10/29/04 (3)

    1,265    1,265

National City Bank (Cleveland, Ohio)

          

1.25%, 01/06/05 (3)

    1,686    1,686

1.35%, 06/10/05 (3)

    843    843

1.36%, 06/23/05 (3)

    1,686    1,686

Norddeutsche Landesbank

          

1.59%, 07/27/05 (3)

    1,686    1,686

Nordea Bank PLC

          

2.11%, 06/07/05 (3)

    1,686    1,686

Prudential Funding LLC

          

1.60%, 12/01/04 (3)

    843    839

Toronto-Dominion Bank

          

1.22%, 03/23/05 (3)

    2,951    2,950

1.34%, 02/10/05 (3)

    674    674

1.41%, 11/01/04 (3)

    1,265    1,265

1.77%, 05/10/05 (3)

    843    843

1.90%, 05/11/05 (3)

    843    843

UBS Finance (Delaware)

          

1.10%, 09/08/04 (3)

    1,686    1,685

1.11%, 12/17/04 (3)

    2,529    2,518

1.13%, 08/09/04 (3)

    1,686    1,686

1.14%, 09/29/04 (3)

    1,686    1,683
         
          35,122

REPURCHASE AGREEMENTS—0.09%

          

Banc of America Securities LLC

          

1.34%, 08/02/04 (3) (6)

    4,384    4,384

Bank of America, N.A.

          

1.37%, 08/02/04 (3) (6)

    8,431    8,431

Goldman Sachs & Co.

          

1.37%, 08/02/04 (3) (6)

    8,431      8,431  
         
            21,246  

U.S. GOVERNMENT AGENCY NOTES—0.04%

              

Federal Home Loan Mortgage Corp.

              

1.28%, 08/19/04 (3)

    674      674  

1.63%, 04/15/05 (3)

    1,180      1,183  

1.80%, 01/18/05 (3)

    784      777  

1.80%, 01/19/05 (3)

    843      836  

2.06%, 05/31/05 (3)

    841      826  

Federal National Mortgage Association

              

1.28%, 08/20/04 (3)

    2,192      2,191  

2.33%, 07/22/05 (3)

    2,529      2,471  
         
            8,958  

MEDIUM-TERM NOTES—0.03%

              

CC USA Inc.

              

1.29%, 04/15/05 (3) (4)

    1,686      1,686  

1.51%, 02/15/05 (3) (4)

    1,096      1,097  

Dorada Finance Inc.

              

1.24%, 08/09/04 (3) (4)

    422      422  

1.48%, 01/18/05 (3) (4)

    1,265      1,265  

K2 USA LLC

              

1.46%, 01/12/05 (3) (4)

    843      843  

Sigma Finance Inc.

              

1.24%, 08/06/04 (3)

    422      422  

WhistleJacket Capital LLC

              

1.32%, 02/04/05 (3) (4)

    422      421  
         
            6,156  

TOTAL SHORT-TERM INVESTMENTS
(Cost: $235,025)

           235,025  
         

TOTAL INVESTMENTS IN SECURITIES — 100.88%
(Cost: $24,185,854) (7)

           23,544,766  

Other Assets, Less Liabilities — (0.88%)

           (205,031 )
         

NET ASSETS — 100.00%

         $ 23,339,735  
         
(1) Non-income earning security.
(2) All or a portion of this security represents a security on loan.
(3) All or a portion of this security represents an investment of securities lending collateral.
(4) Security exempt from registration pursuant to Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.
(5) Issuer is an affiliate of the Fund’s investment adviser.
(6) Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 3.61% to 7.00% and maturity dates ranging from 7/1/13 to 7/1/34.
(7) The cost of investments for federal income tax purposes was $24,185,854. Net unrealized depreciation aggregated $641,088, of which $176,129 represented gross unrealized appreciation on securities and $817,217 represented gross unrealized depreciation on securities.

Schedule of Investments (Unaudited)

iSHARES® MORNINGSTAR LARGE GROWTH INDEX FUND

July 31, 2004

 

Security

    Shares
    Value

COMMON STOCKS—99.99%

            

AIRLINES—0.40%

            

Southwest Airlines Co.

    6,208    $ 89,830
         
            89,830

BEVERAGES—3.76%

            

Coca-Cola Co. (The)

    19,479      854,349
         
            854,349

BIOTECHNOLOGY—5.02%

            

Amgen Inc. (1)

    11,080      630,230

Biogen Idec Inc. (1)

    2,960      177,600

Chiron Corp. (1)

    960      43,997

Genentech Inc. (1)

    3,856      187,710

Genzyme Corp. (1)

    1,976      101,329
         
            1,140,866

COMMERCIAL SERVICES—0.85%

            

Apollo Group Inc. Class A (1)

    1,240      103,602

Paychex Inc.

    2,936      90,165
         
            193,767

COMPUTERS—4.49%

            

Dell Inc. (1)

    19,390      687,763

EMC Corp. (1)

    21,096      231,423

Lexmark International Inc. (1)

    1,136      100,536
         
            1,019,722

COSMETICS & PERSONAL CARE—0.97%

            

Avon Products Inc.

    4,120      177,201

Estee Lauder Companies Inc. Class A

    968      42,495
         
            219,696

DIVERSIFIED FINANCIAL SERVICES—0.99%

            

Schwab (Charles) Corp. (The)

    9,048      79,441

SLM Corp.

    3,824      145,006
         
            224,447

ENTERTAINMENT—0.43%

            

International Game Technology Inc.

    3,040      98,314
         
            98,314

FOOD—1.17%

            

Sysco Corp. (2)

    5,576      192,093

Wrigley (William Jr.) Co.

    1,200      72,480
         
            264,573

HEALTH CARE-PRODUCTS—6.16%

            

Alcon Inc.

    688      52,701

Biomet Inc.

    2,056      90,443

Boston Scientific Corp. (1)

    5,216      199,564

Guidant Corp.

    2,736      151,356

Medtronic Inc.

    10,536      523,323

St. Jude Medical Inc. (1)

    1,536      104,648

Stryker Corp.

    2,416      115,195

Zimmer Holdings Inc. (1)

    2,128      162,388
         
            1,399,618

HEALTH CARE-SERVICES—1.60%

          

UnitedHealth Group Inc.

    5,787    364,002
         
          364,002

INTERNET—4.20%

          

Amazon.com Inc. (1)

    2,560    99,635

eBay Inc. (1)

    3,832    300,161

IAC/InterActiveCorp (1) (2)

    4,392    119,902

Symantec Corp. (1)

    2,712    126,813

Yahoo! Inc. (1)

    9,960    306,768
         
          953,279

LEISURE TIME—0.68%

          

Harley-Davidson Inc.

    2,576    154,225
         
          154,225

MANUFACTURING—0.44%

          

Danaher Corp.

    1,984    100,490
         
          100,490

MEDIA—7.52%

          

Clear Channel Communications Inc.

    4,880    174,216

Cox Communications Inc. Class A (1)

    1,744    48,100

DIRECTV Group Inc. (The) (1)

    5,584    90,517

EchoStar Communications Corp. (1)

    2,056    56,992

Fox Entertainment Group Inc. Class A (1)

    1,520    41,086

Liberty Media Corp. Class A

    22,448    190,359

Time Warner Inc. (1)

    38,153    635,247

Univision Communications Inc. Class A (1)

    2,064    59,794

Walt Disney Co. (The)

    17,888    413,034
         
          1,709,345

MINING—0.62%

          

Newmont Mining Corp.

    3,504    141,807
         
          141,807

OIL & GAS SERVICES—1.97%

          

Baker Hughes Inc.

    2,904    117,031

Schlumberger Ltd.

    5,136    330,348
         
          447,379

PHARMACEUTICALS—14.05%

          

Allergan Inc.

    1,144    86,532

Cardinal Health Inc.

    3,752    166,964

Forest Laboratories Inc. (1)

    3,208    161,330

Gilead Sciences Inc. (1)

    1,864    120,489

Lilly (Eli) & Co.

    8,389    534,547

Pfizer Inc.

    66,407    2,122,368
         
          3,192,230

RETAIL—10.83%

          

Bed Bath & Beyond Inc. (1)

    2,616    92,580

Best Buy Co. Inc.

    2,304    110,961

Kohl’s Corp. (1)

    2,648    121,172

Lowe’s Companies Inc.

    6,192    301,674

Staples Inc.

    4,336    125,224

Starbucks Corp. (1)

    3,456    162,294

Walgreen Co.

    8,928    324,979

Wal-Mart Stores Inc.

    23,045    1,221,615
         
          2,460,499

SEMICONDUCTORS—10.92%

          

Analog Devices Inc.

    3,272    129,898

Applied Materials Inc. (1)

    14,696    249,391

Broadcom Corp. Class A (1)

    2,208    78,075

Intel Corp.

    56,275    1,371,985

Linear Technology Corp.

    2,696    105,414

Maxim Integrated Products Inc.

    2,808    135,065

Texas Instruments Inc.

    15,088    321,827

Xilinx Inc.

    3,024    88,996
         
          2,480,651

SOFTWARE—14.13%

          

Adobe Systems Inc.

    2,080    87,734

Electronic Arts Inc. (1)

    2,608    130,739

First Data Corp.

    7,608    339,393

Intuit Inc. (1)

    1,576    59,005

Microsoft Corp.

    88,592    2,521,328

Veritas Software Corp. (1)

    3,728    71,056
         
          3,209,255

TELECOMMUNICATIONS—8.79%

          

AT&T Wireless Services Inc. (1)

    19,664    283,948

Cisco Systems Inc. (1)

    58,825    1,227,090

QUALCOMM Inc.

    7,042    486,461
         
          1,997,499

TOTAL COMMON STOCKS
(Cost: $23,977,709)

         22,715,843

Security

    Shares or Principal
    Value

SHORT-TERM INVESTMENTS—1.32%

          

MONEY MARKET FUNDS—0.36%

          

Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares (3) (5)

    54,091    54,091

Barclays Global Investors Funds Prime Money Market Fund, Institutional Shares (3) (5)

    24,600    24,600

BlackRock Temp Cash Money Market Fund (3)

    1,129    1,129

Short-Term Investment Co. - Prime Money Market Portfolio (3)

    1,924    1,924
         
          81,744

FLOATING RATE NOTES—0.31%

          

Beta Finance Inc.

          

1.30%, 05/04/05 (3) (4)

    1,342    1,342

1.31%, 10/12/04 (3) (4)

    1,118    1,118

1.34%, 09/15/04 (3) (4)

    2,236    2,236

1.42%, 03/15/05 (3) (4)

    1,118    1,119

1.48%, 08/23/04 (3) (4)

    1,118    1,118

Canadian Imperial Bank of Commerce

          

1.24%, 10/07/04 (3)

    1,677    1,677

1.38%, 11/22/04 (3)

    559    560

1.40%, 10/29/04 (3)

    2,236    2,236

CC USA Inc.

          

1.30%, 05/04/05 (3) (4)

    2,236    2,236

1.61%, 07/29/05 (3) (4)

    2,236    2,236

Depfa Bank PLC

          

1.27%, 06/15/05 (3)

    2,236    2,236

Dorada Finance Inc.

          

1.61%, 07/29/05 (3) (4)

    1,856    1,856

Five Finance Inc.

          

1.42%, 04/29/05 (3) (4)

    1,789    1,789

HBOS Treasury Services PLC

          

1.24%, 04/01/05 (3)

    1,431    1,431

1.58%, 04/22/05 (3)

    2,236    2,236

K2 USA LLC

          

1.34%, 08/16/04 (3) (4)

    559    559

1.41%, 09/27/04 (3) (4)

    2,415    2,415

1.49%, 06/10/05 (3) (4)

    2,236    2,236

1.61%, 07/25/05 (3) (4)

    1,118    1,118

Links Finance LLC

          

1.33%, 04/15/05 (3)

    2,236    2,236

1.68%, 04/25/05 (3)

    2,236    2,237

Nationwide Building Society

          

1.59%, 07/28/05 (3) (4)

    2,236    2,236

1.63%, 12/09/04 (3)

    1,856    1,845

Northern Rock PLC

          

1.56%, 01/13/05 (3) (4)

    2,125    2,125

Permanent Financing PLC

          

1.31%, 03/10/05 (3)

    2,236    2,236

1.32%, 12/10/04 (3)

    1,118    1,118

1.34%, 06/10/05 (3)

    1,006    1,006

Sigma Finance Inc.

          

1.35%, 11/15/04 (3)

    2,236    2,236

1.52%, 10/07/04 (3)

    2,236    2,237

Tango Finance Corp.

          

1.20%, 05/17/05 (3) (4)

    1,856    1,856

1.23%, 02/25/05 (3) (4)

    1,252    1,252

1.32%, 04/07/05 (3) (4)

    821    821

1.34%, 01/18/05 (3) (4)

    984    984

1.42%, 07/25/05 (3) (4)

    2,236    2,236

WhistleJacket Capital LLC

          

1.26%, 10/20/04 (3) (4)

    554    552

1.34%, 09/15/04 (3) (4)

    1,118    1,118

1.38%, 07/15/05 (3) (4)

    1,677    1,677

1.48%, 06/15/05 (3) (4)

    1,118    1,118

White Pine Finance LLC

          

1.21%, 05/20/05 (3) (4)

    1,006    1,006

1.33%, 04/15/05 (3) (4)

    1,677    1,677

1.33%, 07/05/05 (3) (4)

    1,118    1,118

1.34%, 11/15/04 (3) (4)

    1,342    1,342

1.35%, 06/15/05 (3) (4)

    917    917

1.40%, 08/26/04 (3) (4)

    1,118    1,118

1.55%, 07/11/05 (3) (4)

    559    559
         
          70,617

COMMERCIAL PAPER—0.23%

          

Alpine Securitization Corp.

          

1.31%, 08/12/04 (3)

    1,118    1,118

Amsterdam Funding Corp.

          

1.30%, 08/13/04 (3)

    1,677    1,677

1.33%, 08/16/04 (3)

    2,236    2,235

1.35%, 08/20/04 (3)

    671    670

1.37%, 08/24/04 (3)

    783    782

Barton Capital Corp.

          

1.29%, 08/10/04 (3)

    1,118    1,118

1.30%, 08/13/04 (3)

    919    919

1.35%, 08/18/04 (3)

    559    559

Blue Ridge Asset Funding Corp.

          

1.29%, 08/06/04 (3)

    1,118    1,118

Corporate Asset Funding

          

1.42%, 09/03/04 (3)

    671    670

CRC Funding LLC

          

1.42%, 09/03/04 (3)

    1,118    1,117

Edison Asset Securitization

          

1.07%, 09/21/04 (3)

    1,118    1,117

1.45%, 11/09/04 (3)

    2,236    2,227

1.59%, 12/02/04 (3)

    2,236    2,224

Falcon Asset Securitization Corp.

          

1.29%, 08/09/04 (3)

    2,125    2,124

1.30%, 08/03/04 (3)

    1,118    1,118

1.34%, 08/19/04 (3)

    1,118    1,117

1.37%, 08/24/04 (3)

    895    894

Ford Credit Auto Receivables

          

1.85%, 01/14/05 (3)

    1,118    1,109

GIRO Funding US Corp.

          

1.55%, 10/15/04 (3)

    1,467    1,462

Grampian Funding LLC

          

1.26%, 10/22/04 (3)

    2,236    2,230

1.44%, 10/27/04 (3)

    2,236    2,229

1.59%, 11/30/04 (3)

    1,118    1,112

Jupiter Securitization Corp.

          

1.30%, 08/12/04 (3)

    1,118    1,118

1.37%, 08/20/04 (3)

    1,496    1,495

Park Avenue Receivables Corp.

          

1.35%, 08/19/04 (3)

    1,118    1,117

Preferred Receivables Funding Corp.

          

1.29%, 08/05/04 (3)

    1,033    1,033

1.36%, 08/23/04 (3)

    1,118    1,118

Receivables Capital Corp.

          

1.30%, 08/12/04 (3)

    783    782

1.34%, 08/16/04 (3)

    134    134

1.35%, 08/18/04 (3)

    1,006    1,006

1.35%, 08/19/04 (3)

    380    380

Scaldis Capital LLC

          

1.34%, 08/16/04 (3)

    2,236    2,235

1.37%, 08/20/04 (3)

    335    335

1.40%, 08/25/04 (3)

    2,795    2,793

Sydney Capital Corp.

          

1.25%, 10/22/04 (3)

    744    742

1.31%, 08/12/04 (3)

    895    894

Thames Asset Global Securitization No. 1 Inc.

          

1.30%, 08/12/04 (3)

    1,180    1,180

1.34%, 08/16/04 (3)

    626    626

1.36%, 08/20/04 (3)

    1,677    1,676

1.37%, 08/19/04 (3)

    625    624

1.37%, 08/20/04 (3)

    291    291

Windmill Funding Corp.

          

1.29%, 08/06/04 (3)

    2,795    2,795
         
          53,320

TIME DEPOSITS—0.21%

          

Abbey National Treasury Services PLC

          

1.25%, 01/06/05 (3)

    2,236    2,236

1.33%, 02/10/05 (3)

    1,118    1,120

1.39%, 02/02/05 (3)

    1,118    1,119

1.39%, 04/08/05 (3)

    1,565    1,565

1.40%, 10/25/04 (3)

    2,236    2,237

Bank of New York

          

1.39%, 11/01/04 (3)

    2,236    2,236

1.60%, 12/03/04 (3)

    559    560

Bank of Nova Scotia

          

1.13%, 10/06/04 (3)

    2,236    2,236

1.24%, 10/07/04 (3)

    1,677    1,677

1.42%, 10/29/04 (3)

    1,677    1,677

National City Bank (Cleveland, Ohio)

          

1.25%, 01/06/05 (3)

    2,236    2,236

1.35%, 06/10/05 (3)

    1,118    1,118

1.36%, 06/23/05 (3)

    2,236    2,236

Norddeutsche Landesbank

          

1.59%, 07/27/05 (3)

    2,236    2,236

Nordea Bank PLC

          

2.11%, 06/07/05 (3)

    2,236    2,236

Prudential Funding LLC

          

1.60%, 12/01/04 (3)

    1,118    1,112

Toronto-Dominion Bank

          

1.22%, 03/23/05 (3)

    3,914    3,913

1.34%, 02/10/05 (3)

    895    894

1.41%, 11/01/04 (3)

    1,677    1,677

1.77%, 05/10/05 (3)

    1,118    1,119

1.90%, 05/11/05 (3)

    1,118    1,119

UBS Finance (Delaware)

          

1.10%, 09/08/04 (3)

    2,236      2,234  

1.11%, 12/17/04 (3)

    3,355      3,340  

1.13%, 08/09/04 (3)

    2,236      2,236  

1.14%, 09/29/04 (3)

    2,236      2,232  
         
            46,601  

REPURCHASE AGREEMENTS—0.12%

              

Banc of America Securities LLC

              

1.34%, 08/02/04 (3) (6)

    5,815      5,815  

Bank of America, N.A.

              

1.37%, 08/02/04 (3) (6)

    11,182      11,182  

Goldman Sachs & Co.

              

1.37%, 08/02/04 (3) (6)

    11,182      11,182  
         
            28,179  

U.S. GOVERNMENT AGENCY NOTES—0.05%

              

Federal Home Loan Mortgage Corp.

              

1.28%, 08/19/04 (3)

    895      894  

1.63%, 04/15/05 (3)

    1,565      1,569  

1.80%, 01/18/05 (3)

    1,040      1,031  

1.80%, 01/19/05 (3)

    1,118      1,109  

2.06%, 05/31/05 (3)

    1,115      1,096  

Federal National Mortgage Association

              

1.28%, 08/20/04 (3)

    2,907      2,906  

2.33%, 07/22/05 (3)

    3,355      3,278  
         
            11,883  

MEDIUM-TERM NOTES—0.04%

              

CC USA Inc.

              

1.29%, 04/15/05 (3) (4)

    2,236      2,236  

1.51%, 02/15/05 (3) (4)

    1,454      1,455  

Dorada Finance Inc.

              

1.24%, 08/09/04 (3) (4)

    559      559  

1.48%, 01/18/05 (3) (4)

    1,677      1,677  

K2 USA LLC

              

1.46%, 01/12/05 (3) (4)

    1,118      1,118  

Sigma Finance Inc.

              

1.24%, 08/06/04 (3)

    559      559  

WhistleJacket Capital LLC

              

1.32%, 02/04/05 (3) (4)

    559      559  
         
            8,163  

TOTAL SHORT-TERM INVESTMENTS
(Cost: $300,507)

           300,507  
         

TOTAL INVESTMENTS IN SECURITIES — 101.31%
(Cost: $24,278,216) (7)

           23,016,350  

Other Assets, Less Liabilities — (1.31%)

           (297,398 )
         

NET ASSETS — 100.00%

         $ 22,718,952  
         
(1) Non-income earning security.
(2) All or a portion of this security represents a security on loan.
(3) All or a portion of this security represents an investment of securities lending collateral.
(4) Security exempt from registration pursuant to Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.
(5) Issuer is an affiliate of the Fund’s investment adviser.

(6) Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 3.61% to 7.00% and maturity dates ranging from 7/1/13 to 7/1/34.
(7) The cost of investments for federal income tax purposes was $24,278,216. Net unrealized depreciation aggregated $1,261,866, of which $176,142 represented gross unrealized appreciation on securities and $1,438,008 represented gross unrealized depreciation on securities.

Schedule of Investments (Unaudited)

iSHARES® MORNINGSTAR LARGE VALUE INDEX FUND

July 31, 2004

 

Security

    Shares
    Value

COMMON STOCKS—99.82%

            

AEROSPACE & DEFENSE—1.10%

            

Northrop Grumman Corp.

    2,808    $ 147,701

Raytheon Co.

    3,472      116,486
         
            264,187

AGRICULTURE—3.35%

            

Altria Group Inc.

    16,933      806,011
         
            806,011

AUTO MANUFACTURERS—1.58%

            

Ford Motor Co. (1)

    14,532      213,911

General Motors Corp.

    3,820      164,795
         
            378,706

AUTO PARTS & EQUIPMENT—0.37%

            

Johnson Controls Inc.

    1,568      88,514
         
            88,514

BANKS—14.34%

            

Bank of America Corp.

    16,834      1,431,058

Bank of New York Co. Inc. (The)

    6,416      184,332

BB&T Corp.

    4,576      177,228

Comerica Inc.

    1,325      77,473

KeyCorp

    3,384      102,129

National City Corp.

    4,983      181,879

PNC Financial Services Group

    2,328      117,797

SouthTrust Corp.

    2,745      106,479

SunTrust Banks Inc.

    2,214      146,013

U.S. Bancorp

    15,650      442,895

Wachovia Corp.

    10,856      481,029
         
            3,448,312

CHEMICALS—3.48%

            

Air Products & Chemicals Inc.

    1,756      90,873

Dow Chemical Co. (The)

    7,730      308,350

Du Pont (E.I.) de Nemours and Co.

    8,259      354,063

PPG Industries Inc.

    1,416      83,473
         
            836,759

COMPUTERS—2.35%

            

Hewlett-Packard Co.

    22,626      455,914

Sun Microsystems Inc. (2)

    27,432      108,356
         
            564,270

DIVERSIFIED FINANCIAL SERVICES—19.92%

            

Citigroup Inc.

    42,700      1,882,643

Federal Home Loan Mortgage Corp.

    5,685      365,602

Federal National Mortgage Association

    7,215      511,976

JP Morgan Chase & Co.

    29,422      1,098,323

Lehman Brothers Holdings Inc.

    2,286      160,249

Merrill Lynch & Co. Inc.

    7,273      361,614

Morgan Stanley

    8,277      408,304
         
            4,788,711

ELECTRIC—6.11%

          

American Electric Power Co. Inc.

    3,264    101,543

Dominion Resources Inc.

    2,696    171,088

Duke Energy Corp.

    7,554    162,411

Entergy Corp.

    1,901    109,307

Exelon Corp.

    5,458    190,484

FirstEnergy Corp.

    2,720    106,352

FPL Group Inc.

    1,403    94,464

PG&E Corp. (2)

    3,088    88,132

Progress Energy Inc. (1)

    2,032    85,628

Public Service Enterprise Group Inc. (1)

    1,952    76,128

Southern Co. (The)

    6,088    178,257

TXU Corp.

    2,672    105,972
         
          1,469,766

ELECTRICAL COMPONENTS & EQUIPMENT—0.88%

          

Emerson Electric Co.

    3,483    211,418
         
          211,418

FOOD—3.02%

          

Archer-Daniels-Midland Co.

    4,896    75,545

Campbell Soup Co. (1)

    2,104    53,841

ConAgra Foods Inc.

    4,360    113,360

Heinz (H.J.) Co.

    2,904    107,129

Kraft Foods Inc.

    2,192    66,966

Kroger Co. (2)

    5,544    87,595

Safeway Inc. (2)

    3,680    77,758

Sara Lee Corp.

    6,520    143,179
         
          725,373

FOREST PRODUCTS & PAPER—1.20%

          

International Paper Co.

    4,009    173,309

Weyerhaeuser Co.

    1,839    114,018
         
          287,327

INSURANCE—4.81%

          

ACE Ltd.

    2,336    94,818

Allstate Corp. (The)

    5,801    273,111

Chubb Corp.

    1,566    107,709

Hartford Financial Services Group Inc.

    2,408    156,761

Loews Corp.

    1,035    58,612

MetLife Inc.

    2,631    93,848

Principal Financial Group Inc.

    2,632    89,462

Prudential Financial Inc.

    4,343    202,210

XL Capital Ltd. Class A

    1,140    80,575
         
          1,157,106

MANUFACTURING—1.02%

          

Honeywell International Inc.

    6,488    244,014
         
          244,014

OFFICE & BUSINESS EQUIPMENT—0.34%

          

Pitney Bowes Inc.

    1,908    80,518
         
          80,518

OIL & GAS—17.77%

          

Anadarko Petroleum Corp.

    2,080    124,363

ChevronTexaco Corp.

    8,835    845,068

ConocoPhillips

    5,159    406,374

Devon Energy Corp.

    1,861    129,321

Exxon Mobil Corp.

    54,000    2,500,200

Marathon Oil Corp.

    2,848    107,284

Occidental Petroleum Corp.

    3,230    159,142
         
          4,271,752

PHARMACEUTICALS—5.97%

          

Bristol-Myers Squibb Co.

    16,054    367,637

Merck & Co. Inc.

    18,348    832,082

Schering-Plough Corp.

    12,153    236,497
         
          1,436,216

REAL ESTATE INVESTMENT TRUSTS—0.36%

          

Equity Office Properties Trust

    3,328    86,362
         
          86,362

RETAIL—0.53%

          

Limited Brands Inc.

    3,320    67,861

Sears, Roebuck and Co.

    1,632    59,862
         
          127,723

SAVINGS & LOANS—1.15%

          

Washington Mutual Inc.

    7,141    277,071
         
          277,071

TELECOMMUNICATIONS—9.22%

          

Alltel Corp.

    2,544    132,288

AT&T Corp.

    6,552    98,935

BellSouth Corp.

    15,146    410,305

SBC Communications Inc.

    27,346    692,948

Verizon Communications Inc.

    22,874    881,564
         
          2,216,040

TRANSPORTATION—0.95%

          

Burlington Northern Santa Fe Corp.

    3,062    108,640

Union Pacific Corp.

    2,140    120,568
         
          229,208

TOTAL COMMON STOCKS
(Cost: $24,079,337)

         23,995,364
         

Security

    Shares or Principal
    Value

SHORT-TERM INVESTMENTS—0.30%

          

MONEY MARKET FUNDS—0.10%

          

Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares (3) (5)

    16,970    16,970

Barclays Global Investors Funds Prime Money Market Fund, Institutional Shares (3) (5)

    5,555    5,555

BlackRock Temp Cash Money Market Fund (3)

    255    255

Short-Term Investment Co. - Prime Money Market Portfolio (3)

    435    435
         
          23,215

FLOATING RATE NOTES—0.06%

          

Beta Finance Inc.

          

1.30%, 05/04/05 (3) (4)

    303    303

1.31%, 10/12/04 (3) (4)

    253    253

1.34%, 09/15/04 (3) (4)

    505    505

1.42%, 03/15/05 (3) (4)

    253    253

1.48%, 08/23/04 (3) (4)

    253    253

Canadian Imperial Bank of Commerce

          

1.24%, 10/07/04 (3)

    379    379

1.38%, 11/22/04 (3)

    126    126

1.40%, 10/29/04 (3)

    505    505

CC USA Inc.

          

1.30%, 05/04/05 (3) (4)

    505    505

1.61%, 07/29/05 (3) (4)

    505    505

Depfa Bank PLC

          

1.27%, 06/15/05 (3)

    505    505

Dorada Finance Inc.

          

1.61%, 07/29/05 (3) (4)

    419    419

Five Finance Inc.

          

1.42%, 04/29/05 (3) (4)

    404    404

HBOS Treasury Services PLC

          

1.24%, 04/01/05 (3)

    323    323

1.58%, 04/22/05 (3)

    505    505

K2 USA LLC

          

1.34%, 08/16/04 (3) (4)

    126    126

1.41%, 09/27/04 (3) (4)

    545    545

1.49%, 06/10/05 (3) (4)

    505    505

1.61%, 07/25/05 (3) (4)

    253    252

Links Finance LLC

          

1.33%, 04/15/05 (3)

    505    505

1.68%, 04/25/05 (3)

    505    505

Nationwide Building Society

          

1.59%, 07/28/05 (3) (4)

    505    505

1.63%, 12/09/04 (3)

    419    417

Northern Rock PLC

          

1.56%, 01/13/05 (3) (4)

    480    480

Permanent Financing PLC

          

1.31%, 03/10/05 (3)

    505    505

1.32%, 12/10/04 (3)

    253    253

1.34%, 06/10/05 (3)

    227    227

Sigma Finance Inc.

          

1.35%, 11/15/04 (3)

    505    505

1.52%, 10/07/04 (3)

    505    506

Tango Finance Corp.

          

1.20%, 05/17/05 (3) (4)

    419    419

1.23%, 02/25/05 (3) (4)

    283    283

1.32%, 04/07/05 (3) (4)

    185    185

1.34%, 01/18/05 (3) (4)

    222    222

1.42%, 07/25/05 (3) (4)

    505    505

WhistleJacket Capital LLC

          

1.26%, 10/20/04 (3) (4)

    125    125

1.34%, 09/15/04 (3) (4)

    253    253

1.38%, 07/15/05 (3) (4)

    379    379

1.48%, 06/15/05 (3) (4)

    253    252

White Pine Finance LLC

          

1.21%, 05/20/05 (3) (4)

    227    227

1.33%, 04/15/05 (3) (4)

    379    379

1.33%, 07/05/05 (3) (4)

    253    252

1.34%, 11/15/04 (3) (4)

    303    303

1.35%, 06/15/05 (3) (4)

    207    207

1.40%, 08/26/04 (3) (4)

    253    253

1.55%, 07/11/05 (3) (4)

    126    126
         
          15,949

COMMERCIAL PAPER—0.05%

          

Alpine Securitization Corp.

          

1.31%, 08/12/04 (3)

    253    252

Amsterdam Funding Corp.

          

1.30%, 08/13/04 (3)

    379    379

1.33%, 08/16/04 (3)

    505    505

1.35%, 08/20/04 (3)

    152    152

1.37%, 08/24/04 (3)

    177    177

Barton Capital Corp.

          

1.29%, 08/10/04 (3)

    253    252

1.30%, 08/13/04 (3)

    208    207

1.35%, 08/18/04 (3)

    126    126

Blue Ridge Asset Funding Corp.

          

1.29%, 08/06/04 (3)

    253    252

Corporate Asset Funding

          

1.42%, 09/03/04 (3)

    152    151

CRC Funding LLC

          

1.42%, 09/03/04 (3)

    253    252

Edison Asset Securitization

          

1.07%, 09/21/04 (3)

    253    252

1.45%, 11/09/04 (3)

    505    504

1.59%, 12/02/04 (3)

    505    503

Falcon Asset Securitization Corp.

          

1.29%, 08/09/04 (3)

    480    480

1.30%, 08/03/04 (3)

    253    253

1.34%, 08/19/04 (3)

    253    252

1.37%, 08/24/04 (3)

    202    202

Ford Credit Auto Receivables

          

1.85%, 01/14/05 (3)

    253    250

GIRO Funding US Corp.

          

1.55%, 10/15/04 (3)

    331    330

Grampian Funding LLC

          

1.26%, 10/22/04 (3)

    505    504

1.44%, 10/27/04 (3)

    505    503

1.59%, 11/30/04 (3)

    253    251

Jupiter Securitization Corp.

          

1.30%, 08/12/04 (3)

    253    252

1.37%, 08/20/04 (3)

    338    338

Park Avenue Receivables Corp.

          

1.35%, 08/19/04 (3)

    253    252

Preferred Receivables Funding Corp.

          

1.29%, 08/05/04 (3)

    233    233

1.36%, 08/23/04 (3)

    253    252

Receivables Capital Corp.

          

1.30%, 08/12/04 (3)

    177    177

1.34%, 08/16/04 (3)

    30    30

1.35%, 08/18/04 (3)

    227    227

1.35%, 08/19/04 (3)

    86    86

Scaldis Capital LLC

          

1.34%, 08/16/04 (3)

    505    505

1.37%, 08/20/04 (3)

    76    76

1.40%, 08/25/04 (3)

    631    631

Sydney Capital Corp.

          

1.25%, 10/22/04 (3)

    168    168

1.31%, 08/12/04 (3)

    202    202

Thames Asset Global Securitization No. 1 Inc.

          

1.30%, 08/12/04 (3)

    267    266

1.34%, 08/16/04 (3)

    141    141

1.36%, 08/20/04 (3)

    379    379

1.37%, 08/19/04 (3)

    141    141

1.37%, 08/20/04 (3)

    66    66

Windmill Funding Corp.

          

1.29%, 08/06/04 (3)

    631    631
         
          12,042

TIME DEPOSITS—0.04%

          

Abbey National Treasury Services PLC

          

1.25%, 01/06/05 (3)

    505    503

1.33%, 02/10/05 (3)

    253    252

1.39%, 02/02/05 (3)

    253    252

1.39%, 04/08/05 (3)

    354    353

1.40%, 10/25/04 (3)

    505    506

Bank of New York

          

1.39%, 11/01/04 (3)

    505    505

1.60%, 12/03/04 (3)

    126    126

Bank of Nova Scotia

          

1.13%, 10/06/04 (3)

    505    505

1.24%, 10/07/04 (3)

    379    379

1.42%, 10/29/04 (3)

    379    379

National City Bank (Cleveland, Ohio)

          

1.25%, 01/06/05 (3)

    505    505

1.35%, 06/10/05 (3)

    253    253

1.36%, 06/23/05 (3)

    505    505

Norddeutsche Landesbank

          

1.59%, 07/27/05 (3)

    505    505

Nordea Bank PLC

          

2.11%, 06/07/05 (3)

    505    505

Prudential Funding LLC

          

1.60%, 12/01/04 (3)

    253      251  

Toronto-Dominion Bank

              

1.22%, 03/23/05 (3)

    884      884  

1.34%, 02/10/05 (3)

    202      202  

1.41%, 11/01/04 (3)

    379      379  

1.77%, 05/10/05 (3)

    253      252  

1.90%, 05/11/05 (3)

    253      252  

UBS Finance (Delaware)

              

1.10%, 09/08/04 (3)

    505      504  

1.11%, 12/17/04 (3)

    758      754  

1.13%, 08/09/04 (3)

    505      505  

1.14%, 09/29/04 (3)

    505      504  
         
            10,520  

REPURCHASE AGREEMENTS—0.03%

              

Banc of America Securities LLC

              

1.34%, 08/02/04 (3) (6)

    1,313      1,313  

Bank of America, N.A.

              

1.37%, 08/02/04 (3) (6)

    2,525      2,525  

Goldman Sachs & Co.

              

1.37%, 08/02/04 (3) (6)

    2,525      2,525  
         
            6,363  

U.S. GOVERNMENT AGENCY NOTES—0.01%

              

Federal Home Loan Mortgage Corp.

              

1.28%, 08/19/04 (3)

    202      202  

1.63%, 04/15/05 (3)

    354      355  

1.80%, 01/18/05 (3)

    235      233  

1.80%, 01/19/05 (3)

    253      250  

2.06%, 05/31/05 (3)

    252      247  

Federal National Mortgage Association

              

1.28%, 08/20/04 (3)

    657      656  

2.33%, 07/22/05 (3)

    758      740  
         
            2,683  

MEDIUM-TERM NOTES—0.01%

              

CC USA Inc.

              

1.29%, 04/15/05 (3) (4)

    505      505  

1.51%, 02/15/05 (3) (4)

    328      329  

Dorada Finance Inc.

              

1.24%, 08/09/04 (3) (4)

    126      126  

1.48%, 01/18/05 (3) (4)

    379      379  

K2 USA LLC

              

1.46%, 01/12/05 (3) (4)

    253      253  

Sigma Finance Inc.

              

1.24%, 08/06/04 (3)

    126      126  

WhistleJacket Capital LLC

              

1.32%, 02/04/05 (3) (4)

    126      126  
         
            1,844  

TOTAL SHORT-TERM INVESTMENTS
(Cost: $72,616)

           72,616  
         

TOTAL INVESTMENTS IN SECURITIES — 100.12%
(Cost: $24,151,953) (7)

           24,067,980  

Other Assets, Less Liabilities — (0.12%)

           (28,398 )
         

NET ASSETS — 100.00%

         $  24,039,582  
         
(1) All or a portion of this security represents a security on loan.
(2) Non-income earning security.
(3) All or a portion of this security represents an investment of securities lending collateral.

(4) Security exempt from registration pursuant to Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.
(5) Issuer is an affiliate of the Fund’s investment adviser.
(6) Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 3.61% to 7.00% and maturity dates ranging from 7/1/13 to 7/1/34.
(7) The cost of investments for federal income tax purposes was $24,151,984. Net unrealized depreciation aggregated $84,004, of which $416,906 represented gross unrealized appreciation on securities and $500,910 represented gross unrealized depreciation on securities.

Schedule of Investments (Unaudited)

iSHARES® MORNINGSTAR MID CORE INDEX FUND

July 31, 2004

 

Security

    Shares
    Value

COMMON STOCKS—99.99%

            

ADVERTISING—0.82%

            

Harte-Hanks Inc.

    543    $ 13,119

Interpublic Group of Companies Inc. (1)

    4,484      57,350
         
            70,469

AEROSPACE & DEFENSE—1.56%

            

Alliant Techsystems Inc. (1)

    401      25,247

Goodrich (B.F.) Co.

    1,260      40,736

Rockwell Collins Inc.

    1,734      59,337

United Defense Industries Inc. (1)

    267      9,252
         
            134,572

AGRICULTURE—1.19%

            

Monsanto Co.

    2,837      102,870
         
            102,870

APPAREL—1.07%

            

Liz Claiborne Inc.

    1,183      42,813

Polo Ralph Lauren Corp.

    561      18,491

Reebok International Ltd.

    498      16,962

Timberland Co. Class A (1)

    237      13,755
         
            92,021

AUTO PARTS & EQUIPMENT—0.32%

            

BorgWarner Inc.

    594      28,031
         
            28,031

BANKS—5.21%

            

Bank of Hawaii Corp.

    575      25,835

BOK Financial Corp. (1)

    225      9,232

City National Corp.

    448      28,896

Cullen/Frost Bankers Inc.

    554      23,833

International Bancshares Corp.

    432      16,654

Marshall & Ilsley Corp.

    2,200      84,502

Popular Inc.

    2,612      59,397

Synovus Financial Corp.

    2,713      69,100

TCF Financial Corp.

    714      43,126

W Holding Co. Inc.

    849      14,008

Westamerica Bancorp

    339      17,197

Zions Bancorporation

    956      57,838
         
            449,618

BEVERAGES—1.22%

            

Brown-Forman Corp. Class B

    426      19,813

Constellation Brands Inc. (1)

    1,016      38,486

Pepsi Bottling Group Inc.

    1,699      47,317
         
            105,616

BUILDING MATERIALS—1.55%

            

American Standard Companies Inc. (1)

    1,910      72,370

Florida Rock Industries Inc.

    402      17,258

Vulcan Materials Co.

    918      43,715
         
            133,343

CHEMICALS—2.25%

            

Airgas Inc.

    672    14,616

Cabot Corp.

    672    25,590

International Flavors & Fragrances Inc.

    865    31,607

Rohm & Haas Co.

    1,553    60,878

Sigma-Aldrich Corp. (2)

    635    36,474

Valspar Corp. (The)

    507    24,843
         
          194,008

COAL—1.11%

          

CONSOL Energy Inc.

    969    34,729

Massey Energy Co.

    820    22,673

Peabody Energy Corp.

    689    38,708
         
          96,110

COMMERCIAL SERVICES—2.11%

          

ARAMARK Corp. Class B

    648    17,379

BearingPoint Inc. (1)

    1,674    13,827

Block (H & R) Inc.

    1,711    84,061

Equifax Inc.

    1,476    35,601

Rent-A-Center Inc. (1)

    868    25,467

Viad Corp.

    235    5,619
         
          181,954

COMPUTERS—2.63%

          

Cadence Design Systems Inc. (1)

    2,913    39,238

Diebold Inc.

    782    36,050

DST Systems Inc. (1)

    837    38,134

Maxtor Corp. (1) (2)

    2,634    12,327

Reynolds & Reynolds Co. (The) Class A

    690    15,249

Seagate Technology

    1,638    18,788

Storage Technology Corp. (1)

    1,211    30,214

Unisys Corp. (1)

    3,571    36,567
         
          226,567

COSMETICS & PERSONAL CARE—0.40%

          

Alberto-Culver Co.

    744    34,685
         
          34,685

DISTRIBUTION & WHOLESALE—1.25%

          

Grainger (W.W.) Inc.

    867    45,908

Hughes Supply Inc.

    327    19,921

Ingram Micro Inc. Class A (1)

    1,335    19,024

Tech Data Corp. (1)

    618    23,150
         
          108,003

DIVERSIFIED FINANCIAL SERVICES—3.74%

          

AmeriCredit Corp. (1) (2)

    1,699    32,451

E*TRADE Financial Corp. (1)

    3,895    43,118

Federated Investors Inc. Class B

    1,031    28,981

Friedman, Billings, Ramsey Group Inc. Class A (2)

    1,518    24,971

IndyMac Bancorp Inc.

    615    20,430

Instinet Group Inc. (1)

    1,128    5,042

Janus Capital Group Inc.

    2,580    34,211

Jefferies Group Inc.

    531    16,642

Nuveen Investments Inc. Class A

    186    4,724

Raymond James Financial Inc.

    633    14,793

T. Rowe Price Group Inc.

    1,352    62,489

Waddell & Reed Financial Inc. Class A

    879    17,070

Westcorp Inc.

    255    10,603

WFS Financial Inc.

    150    6,862
         
          322,387

ELECTRIC—0.58%

          

Allegheny Energy Inc. (1) (2)

    1,353    20,079

Reliant Energy Inc. (1)

    3,014    29,778
         
          49,857

ELECTRICAL COMPONENTS & EQUIPMENT—1.31%

          

American Power Conversion Corp.

    2,157    32,571

AMETEK Inc.

    717    22,112

Energizer Holdings Inc. (1)

    884    33,680

Hubbell Inc. Class B

    546    24,679
         
          113,042

ELECTRONICS—3.95%

          

Applera Corp. - Applied Biosystems Group

    2,162    44,732

Avnet Inc. (1)

    1,284    24,935

AVX Corp. (2)

    552    6,883

Fisher Scientific International Inc. (1)

    1,222    71,120

Mettler Toledo International Inc. (1)

    447    18,640

Parker Hannifin Corp.

    1,277    73,274

PerkinElmer Inc.

    1,254    22,045

Solectron Corp. (1)

    10,010    55,055

Vishay Intertechnology Inc. (1) (2)

    1,551    24,040
         
          340,724

ENTERTAINMENT—0.37%

          

International Speedway Corp. Class A

    282    14,675

Metro-Goldwyn-Mayer Inc.

    834    10,116

Regal Entertainment Group Class A (2)

    387    7,287
         
          32,078

ENVIRONMENTAL CONTROL—0.84%

          

Allied Waste Industries Inc. (1)

    2,720    25,133

Republic Services Inc.

    1,651    47,219
         
          72,352

FOOD—2.23%

          

Dean Foods Co. (1)

    1,677    62,015

Hormel Foods Corp.

    804    23,863

McCormick & Co. Inc. NVS

    1,310    46,859

Smithfield Foods Inc. (1)

    943    26,725

Smucker (J.M.) Co. (The)

    618    25,839

Tootsie Roll Industries Inc.

    237    6,944
         
          192,245

FOREST PRODUCTS & PAPER—0.75%

          

MeadWestvaco Corp.

    2,157    64,408
         
          64,408

HEALTH CARE-PRODUCTS—1.50%

          

Bausch & Lomb Inc. (2)

    567    34,922

Beckman Coulter Inc.

    664    36,633

Edwards Lifesciences Corp. (1)

    633    22,263

Hillenbrand Industries Inc.

    629    35,721
         
          129,539

HEALTH CARE-SERVICES—1.88%

          

Coventry Health Care Inc. (1)

    790    40,377

Humana Inc. (1)

    1,742    31,548

Manor Care Inc.

    948    29,625

Triad Hospitals Inc. (1)

    820    27,929

Universal Health Services Inc. Class B

    531    24,166

WellChoice Inc. (1)

    240    8,784
         
          162,429

HOME BUILDERS—4.05%

          

Centex Corp.

    1,320    55,994

D.R. Horton Inc.

    2,198    60,731

Hovnanian Enterprises Inc. Class A (1)

    363    11,264

Lennar Corp. Class A

    1,321    56,380

Lennar Corp. Class B

    120    4,763

M.D.C. Holdings Inc.

    252    16,922

NVR Inc. (1)

    57    26,562

Pulte Homes Inc.

    1,118    61,076

Ryland Group Inc.

    259    20,052

Standard-Pacific Corp.

    327    15,176

Toll Brothers Inc. (1) (2)

    513    20,387
         
          349,307

HOME FURNISHINGS—0.64%

          

Leggett & Platt Inc.

    2,055    55,588
         
          55,588

HOUSEHOLD PRODUCTS & WARES—0.90%

          

Avery Dennison Corp.

    1,043    63,175

Scotts Co. (The) Class A (1)

    234    14,274
         
          77,449

INSURANCE—7.80%

          

Alleghany Corp. (1)

    53    14,336

Ambac Financial Group Inc.

    1,158    82,345

Axis Capital Holdings Ltd.

    1,297    33,333

Cincinnati Financial Corp.

    1,596    63,648

Endurance Specialty Holdings Ltd.

    486    16,062

Erie Indemnity Co. Class A

    315    14,276

Everest Re Group Ltd.

    602    44,235

Gallagher (Arthur J.) & Co.

    979    30,320

HCC Insurance Holdings Inc.

    645    19,543

Markel Corp. (1)

    93    26,272

MBIA Inc.

    1,542    83,237

Mercury General Corp.

    279    13,149

MGIC Investment Corp.

    1,055    74,905

PMI Group Inc. (The)

    1,030    42,467

Radian Group Inc.

    1,002    46,112

Transatlantic Holdings Inc.

    281    15,913

Unitrin Inc.

    474    19,742

White Mountains Insurance Group Ltd.

    66    33,363
         
          673,258

INTERNET—0.44%

          

Check Point Software Technologies Ltd. (1)

    1,917    38,129
         
          38,129

LEISURE TIME—1.67%

          

Brunswick Corp.

    964    37,625

Polaris Industries Inc. (2)

    462    22,084

Royal Caribbean Cruises Ltd.

    1,072    45,828

Sabre Holdings Corp.

    1,498    38,244
         
          143,781

LODGING—3.13%

          

Caesars Entertainment Inc. (1)

    2,847    41,936

Harrah’s Entertainment Inc.

    1,207    56,113

Mandalay Resort Group

    645    43,537

MGM Mirage (1)

    650    28,697

Starwood Hotels & Resorts Worldwide Inc.

    2,211    99,495
         
          269,778

MACHINERY—1.04%

          

Graco Inc.

    750    23,610

Rockwell Automation Inc.

    1,773    66,328
         
          89,938

MANUFACTURING—3.12%

          

Carlisle Companies Inc.

    336    21,333

Crane Co.

    633    17,610

Dover Corp.

    2,171    86,145

ITT Industries Inc.

    989    79,071

Pall Corp.

    1,357    31,442

SPX Corp. (2)

    819    33,538
         
          269,139

MEDIA—3.32%

          

Belo (A.H.) Corp.

    1,065    24,900

Cablevision Systems Corp. (1) (2)

    1,995    34,853

Gemstar-TV Guide International Inc. (1)

    2,352    10,913

Hearst-Argyle Television Inc.

    285    6,450

Hollinger International Inc.

    489    8,093

Knight Ridder Inc.

    842    55,395

Lee Enterprises Inc.

    387    18,015

McClatchy Co. (The) Class A

    213    14,686

Meredith Corp.

    432    22,844

New York Times Co. Class A

    1,578    65,645

UnitedGlobalCom Inc. Class A (1)

    3,885    24,631
         
          286,425

METAL FABRICATE & HARDWARE—0.66%

          

Precision Castparts Corp.

    693    39,037

Timken Co. (The)

    738    18,332
         
          57,369

MINING—0.07%

          

Southern Peru Copper Corp.

    150    5,869
         
          5,869

OFFICE FURNISHINGS—0.47%

          

Herman Miller Inc.

    768    20,582

HNI Corp.

    504    20,387
         
          40,969

OIL & GAS—1.97%

          

Newfield Exploration Co. (1)

    552    32,607

Noble Energy Inc.

    591    32,688

Pioneer Natural Resources Co.

    1,286    46,360

Pogo Producing Co.

    623    27,649

Premcor Inc. (1)

    844    30,300
         
          169,604

OIL & GAS SERVICES—0.43%

          

FMC Technologies Inc. (1)

    672    20,160

Tidewater Inc.

    564    17,117
         
          37,277

PACKAGING & CONTAINERS—2.17%

          

Ball Corp.

    564    40,710

Packaging Corp. of America

    654    15,277

Pactiv Corp. (1)

    1,632    38,483

Sealed Air Corp. (1)

    903    42,838

Smurfit-Stone Container Corp.

    2,695    50,154
         
          187,462

PHARMACEUTICALS—1.62%

          

AmerisourceBergen Corp.

    1,199    64,818

King Pharmaceuticals Inc. (1)

    2,604    29,399

Valeant Pharmaceuticals International (2)

    891    15,601

Watson Pharmaceuticals Inc. (1)

    1,175    29,622
         
          139,440

PIPELINES—2.10%

          

Equitable Resources Inc.

    673    34,511

Kinder Morgan Inc.

    1,047    62,830

Western Gas Resources Inc.

    471    15,868

Williams Companies Inc. (2)

    5,560    67,554
         
          180,763

REAL ESTATE INVESTMENT TRUSTS—5.14%

          

Archstone-Smith Trust

    1,970    57,977

Catellus Development Corp.

    939    23,475

Chelsea Property Group Inc.

    471    30,672

Federal Realty Investment Trust

    549    23,168

General Growth Properties Inc.

    2,326    69,966

Mills Corp.

    459    20,930

Pan Pacific Retail Properties Inc.

    429    21,707

Public Storage Inc.

    936    44,114

Regency Centers Corp.

    603    25,627

Rouse Co. (The)

    1,012    49,386

United Dominion Realty Trust Inc.

    1,381    26,778

Ventas Inc.

    894    22,815

Weingarten Realty Investors

    857    26,396
         
          443,011

RETAIL—7.49%

          

Abercrombie & Fitch Co. Class A

    1,012    37,323

American Eagle Outfitters Inc. (1)

    552    18,089

AnnTaylor Stores Corp. (1)

    735    19,727

Barnes & Noble Inc. (1)

    588    20,215

Big Lots Inc. (1)

    1,251    15,312

BJ’s Wholesale Club Inc. (1) (2)

    744    17,343

Brinker International Inc. (1)

    1,038    37,171

CBRL Group Inc.

    519    17,241

Circuit City Stores Inc.

    1,951    27,509

Darden Restaurants Inc.

    1,592    33,957

Foot Locker Inc.

    1,555    34,987

Kmart Holding Corp. (1) (2)

    402    31,127

Nordstrom Inc.

    1,114    48,905

Outback Steakhouse Inc. (2)

    720    29,239

Penney (J.C.) Co. Inc. (Holding Co.)

    2,975    119,000

Pier 1 Imports Inc.

    936    16,782

RadioShack Corp.

    1,715    47,934

Regis Corp.

    471    19,386

7-Eleven Inc. (1)

    327    5,608

Talbots Inc. (The)

    252    7,762

Wendy’s International Inc.

    1,150    41,136
         
          645,753

SAVINGS & LOANS—1.38%

          

Capitol Federal Financial

    225    7,115

Independence Community Bank Corp.

    832    31,067

New York Community Bancorp Inc. (2)

    2,569    49,428

People’s Bank

    1,011    31,857
         
          119,467

SEMICONDUCTORS—2.65%

          

Advanced Micro Devices Inc. (1) (2)

    3,785    47,275

Agere Systems Inc. Class A (1)

    8,589    10,650

Agere Systems Inc. Class B (1)

    9,669    10,926

Cypress Semiconductor Corp. (1)

    1,314    14,901

LSI Logic Corp. (1)

    4,068    20,706

Micron Technology Inc. (1)

    6,520    88,216

Teradyne Inc. (1)

    2,091    35,756
         
          228,430

SOFTWARE—1.32%

          

BMC Software Inc. (1)

    2,426    38,040

Compuware Corp. (1)

    3,687    18,214

Dun & Bradstreet Corp. (1)

    762    42,779

Sybase Inc. (1)

    1,032    15,036
         
          114,069

TELECOMMUNICATIONS—4.68%

          

ADC Telecommunications Inc. (1)

    8,598    20,635

American Tower Corp. Class A (1) (2)

    2,409    34,834

Avaya Inc. (1)

    4,736    69,382

CIENA Corp. (1)

    6,045    17,047

Citizens Communications Co. (1)

    3,064    44,122

NII Holdings Inc. Class B (1) (2)

    631    23,991

NTL Inc. (1)

    807    42,061

PanAmSat Corp. (1)

    198    4,600

Scientific-Atlanta Inc.

    1,634    50,246

Telephone & Data Systems Inc.

    544    41,290

Tellabs Inc. (1) (2)

    4,015    35,774

Western Wireless Corp. Class A (1)

    744    19,634
         
          403,616

TEXTILES—0.49%

          

Mohawk Industries Inc. (1)

    577    42,433
         
          42,433

TOYS, GAMES & HOBBIES—0.92%

          

Mattel Inc.

    4,510    79,015
         
          79,015

TRANSPORTATION—0.26%

          

CNF Inc.

    537    22,157
         
          22,157

WATER—0.22%

          

Aqua America Inc.

    990    19,256
         
          19,256

TOTAL COMMON STOCKS
(Cost: $8,945,630)

         8,625,680
         

Security

    Shares or Principal
    Value

SHORT-TERM INVESTMENTS—3.09%

          

MONEY MARKET FUNDS—0.80%

          

Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares (3) (5)

    43,855    43,855

Barclays Global Investors Funds Prime Money Market Fund, Institutional Shares (3) (5)

    22,210    22,210

BlackRock Temp Cash Money Market Fund (3)

    1,019    1,019

Short-Term Investment Co. - Prime Money Market Portfolio (3)

    1,737    1,737
         
          68,821

FLOATING RATE NOTES—0.74%

          

Beta Finance Inc.

          

1.30%, 05/04/05 (3) (4)

    1,211    1,211

1.31%, 10/12/04 (3) (4)

    1,010    1,010

1.34%, 09/15/04 (3) (4)

    2,019    2,019

1.42%, 03/15/05 (3) (4)

    1,010    1,010

1.48%, 08/23/04 (3) (4)

    1,010    1,010

Canadian Imperial Bank of Commerce

          

1.24%, 10/07/04 (3)

    1,514    1,514

1.38%, 11/22/04 (3)

    505    505

1.40%, 10/29/04 (3)

    2,019    2,019

CC USA Inc.

          

1.30%, 05/04/05 (3) (4)

    2,019    2,019

1.61%, 07/29/05 (3) (4)

    2,019    2,018

Depfa Bank PLC

          

1.27%, 06/15/05 (3)

    2,019    2,019

Dorada Finance Inc.

          

1.61%, 07/29/05 (3) (4)

    1,676    1,675

Five Finance Inc.

          

1.42%, 04/29/05 (3) (4)

    1,615    1,615

HBOS Treasury Services PLC

          

1.24%, 04/01/05 (3)

    1,292    1,292

1.58%, 04/22/05 (3)

    2,019    2,019

K2 USA LLC

          

1.34%, 08/16/04 (3) (4)

    505    505

1.41%, 09/27/04 (3) (4)

    2,181    2,181

1.49%, 06/10/05 (3) (4)

    2,019    2,019

1.61%, 07/25/05 (3) (4)

    1,010    1,009

Links Finance LLC

          

1.33%, 04/15/05 (3)

    2,019    2,019

1.68%, 04/25/05 (3)

    2,019    2,020

Nationwide Building Society

          

1.59%, 07/28/05 (3) (4)

    2,019    2,019

1.63%, 12/09/04 (3)

    1,676    1,666

Northern Rock PLC

          

1.56%, 01/13/05 (3) (4)

    1,918    1,919

Permanent Financing PLC

          

1.31%, 03/10/05 (3)

    2,019    2,019

1.32%, 12/10/04 (3)

    1,010    1,010

1.34%, 06/10/05 (3)

    909    909

Sigma Finance Inc.

          

1.35%, 11/15/04 (3)

    2,019    2,019

1.52%, 10/07/04 (3)

    2,019    2,019

Tango Finance Corp.

          

1.20%, 05/17/05 (3) (4)

    1,676    1,676

1.23%, 02/25/05 (3) (4)

    1,131    1,131

1.32%, 04/07/05 (3) (4)

    741    741

1.34%, 01/18/05 (3) (4)

    888    888

1.42%, 07/25/05 (3) (4)

    2,019    2,019

WhistleJacket Capital LLC

          

1.26%, 10/20/04 (3) (4)

    500    499

1.34%, 09/15/04 (3) (4)

    1,010    1,010

1.38%, 07/15/05 (3) (4)

    1,514    1,515

1.48%, 06/15/05 (3) (4)

    1,010    1,009

White Pine Finance LLC

          

1.21%, 05/20/05 (3) (4)

    909    909

1.33%, 04/15/05 (3) (4)

    1,514    1,514

1.33%, 07/05/05 (3) (4)

    1,010    1,009

1.34%, 11/15/04 (3) (4)

    1,211    1,211

1.35%, 06/15/05 (3) (4)

    828    828

1.40%, 08/26/04 (3) (4)

    1,010    1,010

1.55%, 07/11/05 (3) (4)

    505    505
         
          63,762

COMMERCIAL PAPER—0.56%

          

Alpine Securitization Corp.

          

1.31%, 08/12/04 (3)

    1,010    1,009

Amsterdam Funding Corp.

          

1.30%, 08/13/04 (3)

    1,514    1,514

1.33%, 08/16/04 (3)

    2,019    2,018

1.35%, 08/20/04 (3)

    606    606

1.37%, 08/24/04 (3)

    707    706

Barton Capital Corp.

          

1.29%, 08/10/04 (3)

    1,010    1,009

1.30%, 08/13/04 (3)

    830    830

1.35%, 08/18/04 (3)

    505    504

Blue Ridge Asset Funding Corp.

          

1.29%, 08/06/04 (3)

    1,010    1,009

Corporate Asset Funding

          

1.42%, 09/03/04 (3)

    606    606

CRC Funding LLC

          

1.42%, 09/03/04 (3)

    1,010    1,008

Edison Asset Securitization

          

1.07%, 09/21/04 (3)

    1,010    1,008

1.45%, 11/09/04 (3)

    2,019    2,011

1.59%, 12/02/04 (3)

    2,019    2,008

Falcon Asset Securitization Corp.

          

1.29%, 08/09/04 (3)

    1,918    1,918

1.30%, 08/03/04 (3)

    1,010    1,009

1.34%, 08/19/04 (3)

    1,010    1,009

1.37%, 08/24/04 (3)

    808    807

Ford Credit Auto Receivables

          

1.85%, 01/14/05 (3)

    1,010    1,001

GIRO Funding US Corp.

          

1.55%, 10/15/04 (3)

    1,324    1,320

Grampian Funding LLC

          

1.26%, 10/22/04 (3)

    2,019    2,013

1.44%, 10/27/04 (3)

    2,019    2,012

1.59%, 11/30/04 (3)

    1,010    1,004

Jupiter Securitization Corp.

          

1.30%, 08/12/04 (3)

    1,010    1,009

1.37%, 08/20/04 (3)

    1,351    1,350

Park Avenue Receivables Corp.

          

1.35%, 08/19/04 (3)

    1,010    1,009

Preferred Receivables Funding Corp.

          

1.29%, 08/05/04 (3)

    933    932

1.36%, 08/23/04 (3)

    1,010    1,009

Receivables Capital Corp.

          

1.30%, 08/12/04 (3)

    707    706

1.34%, 08/16/04 (3)

    121    121

1.35%, 08/18/04 (3)

    909    908

1.35%, 08/19/04 (3)

    343    343

Scaldis Capital LLC

          

1.34%, 08/16/04 (3)

    2,019    2,019

1.37%, 08/20/04 (3)

    303    303

1.40%, 08/25/04 (3)

    2,524    2,522

Sydney Capital Corp.

          

1.25%, 10/22/04 (3)

    672    670

1.31%, 08/12/04 (3)

    808    807

Thames Asset Global Securitization No. 1 Inc.

          

1.30%, 08/12/04 (3)

    1,066    1,065

1.34%, 08/16/04 (3)

    565    565

1.36%, 08/20/04 (3)

    1,514    1,513

1.37%, 08/19/04 (3)

    564    564

1.37%, 08/20/04 (3)

    262    262

Windmill Funding Corp.

          

1.29%, 08/06/04 (3)

    2,524    2,523
         
          48,139

TIME DEPOSITS—0.49%

          

Abbey National Treasury Services PLC

          

1.25%, 01/06/05 (3)

    2,019    2,019

1.33%, 02/10/05 (3)

    1,010    1,009

1.39%, 02/02/05 (3)

    1,010    1,009

1.39%, 04/08/05 (3)

    1,413    1,413

1.40%, 10/25/04 (3)

    2,019    2,019

Bank of New York

          

1.39%, 11/01/04 (3)

    2,019    2,019

1.60%, 12/03/04 (3)

    505    505

Bank of Nova Scotia

          

1.13%, 10/06/04 (3)

    2,019    2,019

1.24%, 10/07/04 (3)

    1,514    1,514

1.42%, 10/29/04 (3)

    1,514    1,514

National City Bank (Cleveland, Ohio)

          

1.25%, 01/06/05 (3)

    2,019    2,020

1.35%, 06/10/05 (3)

    1,010    1,010

1.36%, 06/23/05 (3)

    2,019    2,019

Norddeutsche Landesbank

          

1.59%, 07/27/05 (3)

    2,019    2,018

Nordea Bank PLC

          

2.11%, 06/07/05 (3)

    2,019    2,019

Prudential Funding LLC

          

1.60%, 12/01/04 (3)

    1,010    1,005

Toronto-Dominion Bank

          

1.22%, 03/23/05 (3)

    3,533    3,533

1.34%, 02/10/05 (3)

    808    808

1.41%, 11/01/04 (3)

    1,514    1,514

1.77%, 05/10/05 (3)

    1,010    1,009

1.90%, 05/11/05 (3)

    1,010      1,009  

UBS Finance (Delaware)

              

1.10%, 09/08/04 (3)

    2,019      2,017  

1.11%, 12/17/04 (3)

    3,029      3,016  

1.13%, 08/09/04 (3)

    2,019      2,019  

1.14%, 09/29/04 (3)

    2,019      2,015  
         
            42,071  

REPURCHASE AGREEMENTS—0.29%

              

Banc of America Securities LLC

              

1.34%, 08/02/04 (3) (6)

    5,245      5,245  

Bank of America, N.A.

              

1.37%, 08/02/04 (3) (6)

    10,095      10,095  

Goldman Sachs & Co.

              

1.37%, 08/02/04 (3) (6)

    10,095      10,095  
         
            25,435  

U.S. GOVERNMENT AGENCY NOTES—0.12%

              

Federal Home Loan Mortgage Corp.

              

1.28%, 08/19/04 (3)

    808      807  

1.63%, 04/15/05 (3)

    1,413      1,417  

1.80%, 01/18/05 (3)

    939      931  

1.80%, 01/19/05 (3)

    1,010      1,001  

2.06%, 05/31/05 (3)

    1,007      989  

Federal National Mortgage Association

              

1.28%, 08/20/04 (3)

    2,625      2,623  

2.33%, 07/22/05 (3)

    3,029      2,959  
         
            10,727  

MEDIUM-TERM NOTES—0.09%

              

CC USA Inc.

              

1.29%, 04/15/05 (3) (4)

    2,019      2,019  

1.51%, 02/15/05 (3) (4)

    1,312      1,313  

Dorada Finance Inc.

              

1.24%, 08/09/04 (3) (4)

    505      505  

1.48%, 01/18/05 (3) (4)

    1,514      1,514  

K2 USA LLC

              

1.46%, 01/12/05 (3) (4)

    1,010      1,009  

Sigma Finance Inc.

              

1.24%, 08/06/04 (3)

    505      505  

WhistleJacket Capital LLC

              

1.32%, 02/04/05 (3) (4)

    505      505  
         
            7,370  

TOTAL SHORT-TERM INVESTMENTS
(Cost: $266,325)

           266,325  
         

TOTAL INVESTMENTS IN SECURITIES — 103.08%
(Cost: $9,211,955) (7)

           8,892,005  

Other Assets, Less Liabilities — (3.08%)

           (265,876 )
         

NET ASSETS — 100.00%

         $  8,626,129  
         

NVS    - Non-Voting Shares

(1) Non-income earning security.
(2) All or a portion of this security represents a security on loan.
(3) All or a portion of this security represents an investment of securities lending collateral.

(4) Security exempt from registration pursuant to Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.
(5) Issuer is an affiliate of the Fund’s investment adviser.
(6) Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 3.61% to 7.00% and maturity dates ranging from 7/1/13 to 7/1/34.
(7) The cost of investments for federal income tax purposes was $9,212,840. Net unrealized depreciation aggregated $320,835, of which $104,955 represented gross unrealized appreciation on securities and $425,790 represented gross unrealized depreciation on securities.

Schedule of Investments (Unaudited)

iSHARES® MORNINGSTAR MID GROWTH INDEX FUND

July 31, 2004

 

Security

    Shares
    Value

COMMON STOCKS—99.93%

            

ADVERTISING—0.81%

            

Getty Images Inc. (1)

    486    $ 26,545

Lamar Advertising Co. (1)

    882      35,465

West Corp. (1) (2)

    225      5,641
         
            67,651

AEROSPACE & DEFENSE—0.96%

            

L-3 Communications Holdings Inc.

    1,131      69,161

Titan Corp. (The) (1)

    891      10,665
         
            79,826

AIRLINES—0.26%

            

JetBlue Airways Corp. (1)

    927      22,072
         
            22,072

APPAREL—1.13%

            

Coach Inc. (1)

    2,007      85,880

Columbia Sportswear Co. (1)

    159      8,705
         
            94,585

AUTO MANUFACTURERS—0.23%

            

Oshkosh Truck Corp.

    366      19,387
         
            19,387

BANKS—1.02%

            

Commerce Bancorp Inc.

    833      41,933

First Marblehead Corp. (The) (1)

    258      10,826

Investors Financial Services Corp. (2)

    702      32,067
         
            84,826

BIOTECHNOLOGY—3.55%

            

Affymetrix Inc. (1)

    642      17,340

Celgene Corp. (1)

    875      46,664

Charles River Laboratories International Inc. (1)

    489      22,039

Human Genome Sciences Inc. (1)

    1,377      13,804

ICOS Corp. (1) (2)

    615      14,797

Invitrogen Corp. (1)

    555      29,126

Martek Biosciences Corp. (1)

    309      14,622

MedImmune Inc. (1)

    2,656      61,194

Millennium Pharmaceuticals Inc. (1)

    2,994      33,293

Millipore Corp. (1)

    529      27,873

Protein Design Labs Inc. (1)

    1,002      16,232
         
            296,984

CHEMICALS—0.72%

            

Ecolab Inc.

    1,973      60,176
         
            60,176

COMMERCIAL SERVICES—5.47%

            

Alliance Data Systems Corp. (1)

    477      18,942

Career Education Corp. (1)

    1,017      34,385

ChoicePoint Inc. (1)

    946      39,732

Corinthian Colleges Inc. (1)

    957      17,915

Corporate Executive Board Co. (The)

    390      22,113

DeVry Inc. (1)

    648      15,066

Education Management Corp. (1)

    636    17,655

Hewitt Associates Inc. Class A (1)

    333    8,891

Interactive Data Corp. (1)

    378    6,619

Iron Mountain Inc. (1)

    1,242    40,079

ITT Educational Services Inc. (1)

    486    15,479

Manpower Inc.

    954    41,547

Moody’s Corp.

    1,357    92,412

Pharmaceutical Product Development Inc. (1)

    525    18,407

Robert Half International Inc.

    1,821    50,660

Weight Watchers International Inc. (1)

    444    17,201
         
          457,103

COMPUTERS—6.94%

          

Affiliated Computer Services Inc. Class A (1)

    1,310    67,989

Apple Computer Inc. (1)

    3,813    123,312

BISYS Group Inc. (The) (1)

    1,275    17,404

Ceridian Corp. (1)

    1,575    28,350

Cognizant Technology Solutions Corp. (1)

    1,356    37,358

Henry (Jack) & Associates Inc.

    810    15,593

National Instruments Corp.

    555    16,123

NCR Corp. (1)

    1,011    46,941

Network Appliance Inc. (1)

    3,709    71,621

SanDisk Corp. (1) (2)

    1,713    41,660

SunGard Data Systems Inc. (1)

    3,096    72,168

Synopsys Inc. (1)

    1,647    41,653
         
          580,172

DISTRIBUTION & WHOLESALE—1.06%

          

CDW Corp.

    693    44,560

Fastenal Co.

    699    43,604
         
          88,164

DIVERSIFIED FINANCIAL SERVICES—2.54%

          

Ameritrade Holding Corp. (1)

    3,003    33,303

BlackRock Inc.

    144    8,921

CapitalSource Inc. (1)

    705    15,242

Chicago Mercantile Exchange Holdings Inc.

    291    36,521

Doral Financial Corp.

    987    38,740

Eaton Vance Corp.

    636    24,130

Legg Mason Inc.

    705    55,371
         
          212,228

ELECTRIC—0.28%

          

NRG Energy Inc. (1)

    891    23,692
         
          23,692

ELECTRICAL COMPONENTS & EQUIPMENT—0.55%

          

Molex Inc.

    837    24,240

Molex Inc. Class A

    876    21,742
         
          45,982

ELECTRONICS—3.76%

          

Amphenol Corp. Class A (1)

    843    26,495

Garmin Ltd. (2)

    615    23,063

Gentex Corp.

    819    29,320

Jabil Circuit Inc. (1)

    1,743    37,910

Sanmina-SCI Corp. (1)

    5,523    40,539

Symbol Technologies Inc.

    2,187    28,628

Tektronix Inc.

    897    27,269

Thermo Electron Corp. (1)

    1,758    45,216

Waters Corp. (1)

    1,277    56,035
         
          314,475

ENGINEERING & CONSTRUCTION—0.26%

          

Jacobs Engineering Group Inc. (1)

    552    22,069
         
          22,069

ENTERTAINMENT—0.32%

          

GTECH Holdings Corp.

    630    26,693
         
          26,693

ENVIRONMENTAL CONTROL—0.27%

          

Stericycle Inc. (1)

    462    22,638
         
          22,638

FOOD—1.02%

          

Dreyer’s Grand Ice Cream Holdings Inc.

    240    19,070

Performance Food Group Co. (1)

    492    12,192

Whole Foods Market Inc. (2)

    657    54,084
         
          85,346

HEALTH CARE-PRODUCTS—4.25%

          

Bard (C.R.) Inc.

    1,101    60,775

Cooper Companies Inc.

    345    20,510

Cytyc Corp. (1)

    1,173    28,351

Dade Behring Holdings Inc. (1)

    450    22,361

DENTSPLY International Inc.

    764    37,153

Henry Schein Inc. (1)

    468    31,403

IDEXX Laboratories Inc. (1)

    369    18,594

INAMED Corp. (1)

    375    20,318

Patterson Cos. Inc. (1)

    621    45,594

Respironics Inc. (1)

    369    20,561

Varian Medical Systems Inc. (1)

    726    50,101
         
          355,721

HEALTH CARE-SERVICES—3.91%

          

Community Health Systems Inc. (1)

    801    19,713

Covance Inc. (1)

    666    24,436

DaVita Inc. (1)

    1,041    31,615

Health Management Associates Inc. Class A

    2,598    52,116

Laboratory Corp. of America Holdings (1)

    1,510    59,132

Lincare Holdings Inc. (1)

    1,056    33,729

Quest Diagnostics Inc.

    851    69,850

Renal Care Group Inc. (1)

    708    22,557

Select Medical Corp.

    1,092    14,021
         
          327,169

HOLDING COMPANIES - DIVERSIFIED—0.30%

          

Leucadia National Corp.

    489    25,179
         
          25,179

HOME BUILDERS—0.16%

          

Thor Industries Inc.

    414    12,962
         
          12,962

HOME FURNISHINGS—0.72%

          

Harman International Industries Inc.

    705    60,440
         
          60,440

HOUSEHOLD PRODUCTS & WARES—0.35%

          

Church & Dwight Co. Inc.

    435    19,218

Fossil Inc. (1)

    411    9,942
         
          29,160

INSURANCE—0.30%

          

Brown & Brown Inc.

    594    25,257
         
          25,257

INTERNET—1.82%

          

CheckFree Corp. (1)

    699    20,998

McAfee Inc. (1)

    1,752    31,501

Monster Worldwide Inc. (1) (2)

    1,191    26,309

VeriSign Inc. (1)

    2,631    46,069

WebMD Corp. (1)

    3,309    26,935
         
          151,812

LODGING—1.32%

          

Hilton Hotels Corp.

    4,092    72,960

Station Casinos Inc.

    366    15,811

Wynn Resorts Ltd. (1)

    612    21,897
         
          110,668

MACHINERY—0.50%

          

Zebra Technologies Corp. Class A (1)

    510    42,141
         
          42,141

MANUFACTURING—0.52%

          

Donaldson Co. Inc.

    804    21,411

Roper Industries Inc.

    390    21,840
         
          43,251

MEDIA—3.38%

          

Citadel Broadcasting Corp. (1)

    597    8,412

Cox Radio Inc. Class A (1)

    405    7,019

Dow Jones & Co. Inc.

    480    20,342

Entercom Communications Corp. (1)

    432    16,610

Radio One Inc. (1)

    237    3,662

Radio One Inc. Class D (1)

    687    10,449

Scripps (E.W.) Co. Class A

    433    44,348

Sirius Satellite Radio Inc. (1)

    13,104    33,153

Washington Post Co. (The) Class B

    65    56,414

Westwood One Inc. (1)

    819    19,492

Wiley, John & Sons Inc. Class A

    417    13,494

XM Satellite Radio Holdings Inc. Class A (1)

    1,872    49,402
         
          282,797

MINING—0.66%

          

Freeport-McMoRan Copper & Gold Inc.

    1,580    55,063
         
          55,063

OIL & GAS—8.33%

          

Diamond Offshore Drilling Inc.

    648    15,837

ENSCO International Inc.

    1,602    48,236

EOG Resources Inc.

    1,243    78,993

Evergreen Resources Inc. (1)

    456    18,660

GlobalSantaFe Corp.

    2,025    55,485

Murphy Oil Corp.

    930    71,926

Nabors Industries Ltd. (1)

    1,585    73,703

Noble Corp. (1)

    1,413    54,711

Patina Oil & Gas Corp.

    699    20,614

Patterson-UTI Energy Inc.

    1,650    30,080

Pride International Inc. (1)

    1,227    22,086

Rowan Companies Inc. (1)

    1,122    27,399

Transocean Inc. (1)

    3,421    97,156

XTO Energy Inc.

    2,728    81,567
         
          696,453

OIL & GAS SERVICES—3.86%

          

BJ Services Co. (1)

    1,716    85,217

Cooper Cameron Corp. (1)

    570    29,121

Grant Prideco Inc. (1)

    1,182    22,328

National-Oilwell Inc. (1)

    909    30,406

Smith International Inc. (1)

    1,114    64,924

Varco International Inc. (1)

    1,029    24,871

Weatherford International Ltd. (1)

    1,415    66,194
         
          323,061

PHARMACEUTICALS—7.36%

          

Accredo Health Inc. (1)

    513    16,621

American Pharmaceutical Partners Inc. (1)

    426    12,652

Amylin Pharmaceuticals Inc. (1) (2)

    876    18,046

Barr Pharmaceuticals Inc. (1)

    954    32,770

Caremark Rx Inc. (1)

    4,940    150,670

Cephalon Inc. (1) (2)

    594    30,009

Endo Pharmaceuticals Holdings Inc. (1)

    348    6,682

Eon Labs Inc. (1)

    279    8,124

Express Scripts Inc. (1)

    672    44,083

ImClone Systems Inc. (1)

    651    38,357

IVAX Corp. (1)

    1,784    42,548

Medicis Pharmaceutical Corp. Class A

    594    21,247

MGI Pharma Inc. (1)

    747    20,923

Mylan Laboratories Inc.

    2,844    42,148

NBTY Inc. (1)

    642    13,970

Neurocrine Biosciences Inc. (1)

    384    17,883

Omnicare Inc.

    1,101    31,125

OSI Pharmaceuticals Inc. (1)

    423    25,422

Sepracor Inc. (1)

    909    41,787
         
          615,067

REAL ESTATE—0.22%

          

St. Joe Company (The)

    426    18,327
         
          18,327

RETAIL—8.14%

          

Advance Auto Parts Inc. (1)

    786    29,176

Applebee’s International Inc.

    876    23,337

AutoZone Inc. (1)

    698    53,886

CarMax Inc. (1)

    1,101    22,901

Cheesecake Factory (The) (1)

    513    21,428

Chico’s FAS Inc. (1) (2)

    945    39,567

Claire’s Stores Inc.

    876    20,192

Dollar General Corp.

    3,186    61,490

Dollar Tree Stores Inc. (1)

    1,206    32,453

Family Dollar Stores Inc.

    1,716    47,808

Krispy Kreme Doughnuts Inc. (1)

    606    9,538

Michaels Stores Inc.

    734    39,658

MSC Industrial Direct Co. Inc. Class A

    444    13,897

O’Reilly Automotive Inc. (1)

    582    23,565

Pacific Sunwear of California Inc. (1)

    813    16,585

PETCO Animal Supplies Inc. (1)

    438    13,083

PETsMART Inc.

    1,544    47,879

Ross Stores Inc.

    1,613    37,341

Ruby Tuesday Inc.

    705    20,367

Tiffany & Co.

    1,569    56,092

Urban Outfitters Inc. (1)

    612    18,201

Williams-Sonoma Inc. (1)

    993    32,263
         
          680,707

SAVINGS & LOANS—0.30%

          

Hudson City Bancorp Inc.

    729    25,267
         
          25,267

SEMICONDUCTORS—7.57%

          

Altera Corp. (1)

    3,994    83,155

Atmel Corp. (1)

    4,677    20,018

Fairchild Semiconductor International Inc. Class A (1)

    1,074    15,777

Integrated Circuit Systems Inc. (1)

    771    18,442

International Rectifier Corp. (1)

    702    27,518

Intersil Corp. Class A

    1,485    27,279

KLA-Tencor Corp. (1)

    2,097    86,417

Lam Research Corp. (1)

    1,422    33,915

Marvell Technology Group Ltd. (1)

    2,016    46,812

Microchip Technology Inc.

    2,208    63,966

National Semiconductor Corp. (1)

    3,831    65,702

Novellus Systems Inc. (1)

    1,569    42,363

NVIDIA Corp. (1)

    1,659    25,549

PMC-Sierra Inc. (1)

    1,872    22,239

QLogic Corp. (1)

    990    24,206

Rambus Inc. (1)

    1,020    17,105

Silicon Laboratories Inc. (1)

    360    12,704
         
          633,167

SOFTWARE—7.02%

          

Activision Inc. (1)

    1,431    20,964

Acxiom Corp. (2)

    906    19,932

Autodesk Inc.

    1,200    48,240

BEA Systems Inc. (1)

    4,098    26,596

Certegy Inc.

    675    25,589

Citrix Systems Inc. (1)

    1,806    31,822

Fair Isaac Corp.

    747    21,349

Fiserv Inc. (1)

    2,081    71,295

Global Payments Inc.

    402    18,351

IMS Health Inc.

    2,509    60,818

Mercury Interactive Corp. (1)

    978    35,756

Novell Inc. (1)

    4,071    27,846

PeopleSoft Inc. (1)

    3,537    63,737

Pixar Inc. (1)

    261    17,811

Red Hat Inc. (1)

    1,554    26,604

SEI Investments Co.

    741    22,726

Siebel Systems Inc. (1)

    4,776    38,495

Total System Services Inc.

    399    9,073
         
          587,004

TELECOMMUNICATIONS—5.49%

          

ADTRAN Inc.

    456    12,180

Amdocs Ltd. (1)

    1,866    40,492

Andrew Corp. (1)

    1,584    17,186

Comverse Technology Inc. (1)

    2,073    35,365

Crown Castle International Corp. (1)

    2,370    33,464

Harris Corp.

    705    33,473

JDS Uniphase Corp. (1)

    15,392    53,102

Juniper Networks Inc. (1)

    5,263    120,838

Level 3 Communications Inc. (1)

    6,549    19,843

Nextel Partners Inc. Class A (1)

    417    6,701

Plantronics Inc. (1)

    507    19,611

Polycom Inc. (1)

    1,059    20,418

SpectraSite Inc. (1)

    477    20,511

United States Cellular Corp. (1)

    162    6,359

UTStarcom Inc. (1)

    1,056    19,283
         
          458,826

TEXTILES—0.74%

          

Cintas Corp.

    1,466    61,513
         
          61,513

TOYS, GAMES & HOBBIES—0.14%

          

Marvel Enterprises Inc. (1)

    873    11,393
         
          11,393

TRANSPORTATION—1.42%

          

CH Robinson Worldwide Inc.

    858    37,520

Expeditors International Washington Inc.

    1,124    52,165

Hunt (J.B.) Transport Services Inc.

    603    23,161

SIRVA Inc. (1)

    264    6,172
         
          119,018

TOTAL COMMON STOCKS
(Cost: $8,892,950)

         8,355,492
         

Security

    Shares or Principal
    Value

SHORT-TERM INVESTMENTS—2.25%

          

MONEY MARKET FUNDS—0.56%

          

Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares (3) (5)

    29,349    29,349

Barclays Global Investors Funds Prime Money Market Fund, Institutional Shares (3) (5)

    15,875    15,875

BlackRock Temp Cash Money Market Fund (3)

    729    729

Short-Term Investment Co.- Prime Money Market Portfolio (3)

    1,242    1,242
         
          47,195

FLOATING RATE NOTES—0.55%

          

Beta Finance Inc.

          

1.30%, 05/04/05 (3) (4)

    866    866

1.31%, 10/12/04 (3) (4)

    722    722

1.34%, 09/15/04 (3) (4)

    1,443    1,443

1.42%, 03/15/05 (3) (4)

    722    722

1.48%, 08/23/04 (3) (4)

    722    722

Canadian Imperial Bank of Commerce

          

1.24%, 10/07/04 (3)

    1,082    1,082

1.38%, 11/22/04 (3)

    361    361

1.40%, 10/29/04 (3)

    1,443    1,443

CC USA Inc.

          

1.30%, 05/04/05 (3) (4)

    1,443    1,443

1.61%, 07/29/05 (3) (4)

    1,443    1,443

Depfa Bank PLC

          

1.27%, 06/15/05 (3)

    1,443    1,443

Dorada Finance Inc.

          

1.61%, 07/29/05 (3) (4)

    1,198    1,197

Five Finance Inc.

          

1.42%, 04/29/05 (3) (4)

    1,155    1,154

HBOS Treasury Services PLC

          

1.24%, 04/01/05 (3)

    924    924

1.58%, 04/22/05 (3)

    1,443    1,443

K2 USA LLC

          

1.34%, 08/16/04 (3) (4)

    361    361

1.41%, 09/27/04 (3) (4)

    1,559    1,559

1.49%, 06/10/05 (3) (4)

    1,443    1,443

1.61%, 07/25/05 (3) (4)

    722    721

Links Finance LLC

          

1.33%, 04/15/05 (3)

    1,443    1,443

1.68%, 04/25/05 (3)

    1,443    1,444

Nationwide Building Society

          

1.59%, 07/28/05 (3) (4)

    1,443    1,443

1.63%, 12/09/04 (3)

    1,198    1,191

Northern Rock PLC

          

1.56%, 01/13/05 (3) (4)

    1,371    1,372

Permanent Financing PLC

          

1.31%, 03/10/05 (3)

    1,443    1,443

1.32%, 12/10/04 (3)

    722    722

1.34%, 06/10/05 (3)

    649    649

Sigma Finance Inc.

          

1.35%, 11/15/04 (3)

    1,443    1,443

1.52%, 10/07/04 (3)

    1,443    1,443

Tango Finance Corp.

          

1.20%, 05/17/05 (3) (4)

    1,198    1,198

1.23%, 02/25/05 (3) (4)

    808    808

1.32%, 04/07/05 (3) (4)

    530    530

1.34%, 01/18/05 (3) (4)

    635    635

1.42%, 07/25/05 (3) (4)

    1,443    1,443

WhistleJacket Capital LLC

          

1.26%, 10/20/04 (3) (4)

    357    356

1.34%, 09/15/04 (3) (4)

    722    722

1.38%, 07/15/05 (3) (4)

    1,082    1,082

1.48%, 06/15/05 (3) (4)

    722    721

White Pine Finance LLC

          

1.21%, 05/20/05 (3) (4)

    649    649

1.33%, 04/15/05 (3) (4)

    1,082    1,082

1.33%, 07/05/05 (3) (4)

    722    721

1.34%, 11/15/04 (3) (4)

    866    866

1.35%, 06/15/05 (3) (4)

    592    592

1.40%, 08/26/04 (3) (4)

    722    722

1.55%, 07/11/05 (3) (4)

    361    361
         
          45,573

COMMERCIAL PAPER—0.41%

          

Alpine Securitization Corp.

          

1.31%, 08/12/04 (3)

    722    721

Amsterdam Funding Corp.

          

1.30%, 08/13/04 (3)

    1,082    1,082

1.33%, 08/16/04 (3)

    1,443    1,442

1.35%, 08/20/04 (3)

    433    433

1.37%, 08/24/04 (3)

    505    505

Barton Capital Corp.

          

1.29%, 08/10/04 (3)

    722    721

1.30%, 08/13/04 (3)

    593    593

1.35%, 08/18/04 (3)

    361    361

Blue Ridge Asset Funding Corp.

          

1.29%, 08/06/04 (3)

    722    721

Corporate Asset Funding

          

1.42%, 09/03/04 (3)

    433    432

CRC Funding LLC

          

1.42%, 09/03/04 (3)

    722    721

Edison Asset Securitization

          

1.07%, 09/21/04 (3)

    722    721

1.45%, 11/09/04 (3)

    1,443    1,437

1.59%, 12/02/04 (3)

    1,443    1,435

Falcon Asset Securitization Corp.

          

1.29%, 08/09/04 (3)

    1,371    1,371

1.30%, 08/03/04 (3)

    722    722

1.34%, 08/19/04 (3)

    722    721

1.37%, 08/24/04 (3)

    577    577

Ford Credit Auto Receivables

          

1.85%, 01/14/05 (3)

    722    715

GIRO Funding US Corp.

          

1.55%, 10/15/04 (3)

    946    943

Grampian Funding LLC

          

1.26%, 10/22/04 (3)

    1,443    1,439

1.44%, 10/27/04 (3)

    1,443    1,439

1.59%, 11/30/04 (3)

    722    718

Jupiter Securitization Corp.

          

1.30%, 08/12/04 (3)

    722    721

1.37%, 08/20/04 (3)

    965    965

Park Avenue Receivables Corp.

          

1.35%, 08/19/04 (3)

    722    721

Preferred Receivables Funding Corp.

          

1.29%, 08/05/04 (3)

    667    666

1.36%, 08/23/04 (3)

    722    722

Receivables Capital Corp.

          

1.30%, 08/12/04 (3)

    505    505

1.34%, 08/16/04 (3)

    86    86

1.35%, 08/18/04 (3)

    649    649

1.35%, 08/19/04 (3)

    245    245

Scaldis Capital LLC

          

1.34%, 08/16/04 (3)

    1,443    1,442

1.37%, 08/20/04 (3)

    216    216

1.40%, 08/25/04 (3)

    1,804    1,802

Sydney Capital Corp.

          

1.25%, 10/22/04 (3)

    480    479

1.31%, 08/12/04 (3)

    577    577

Thames Asset Global Securitization No. 1 Inc.

          

1.30%, 08/12/04 (3)

    762    761

1.34%, 08/16/04 (3)

    404    404

1.36%, 08/20/04 (3)

    1,082    1,082

1.37%, 08/19/04 (3)

    403    403

1.37%, 08/20/04 (3)

    188    187

Windmill Funding Corp.

          

1.29%, 08/06/04 (3)

    1,804    1,804
         
          34,407

TIME DEPOSITS—0.36%

          

Abbey National Treasury Services PLC

          

1.25%, 01/06/05 (3)

    1,443    1,443

1.33%, 02/10/05 (3)

    722    722

1.39%, 02/02/05 (3)

    722    722

1.39%, 04/08/05 (3)

    1,010    1,010

1.40%, 10/25/04 (3)

    1,443    1,443

Bank of New York

          

1.39%, 11/01/04 (3)

    1,443    1,443

1.60%, 12/03/04 (3)

    361    361

Bank of Nova Scotia

          

1.13%, 10/06/04 (3)

    1,443    1,443

1.24%, 10/07/04 (3)

    1,082    1,082

1.42%, 10/29/04 (3)

    1,082    1,082

National City Bank (Cleveland, Ohio)

          

1.25%, 01/06/05 (3)

    1,443    1,443

1.35%, 06/10/05 (3)

    722    722

1.36%, 06/23/05 (3)

    1,443    1,443

Norddeutsche Landesbank

          

1.59%, 07/27/05 (3)

    1,443    1,443

Nordea Bank PLC

          

2.11%, 06/07/05 (3)

    1,443    1,443

Prudential Funding LLC

          

1.60%, 12/01/04 (3)

    722    718

Toronto-Dominion Bank

          

1.22%, 03/23/05 (3)

    2,526    2,525

1.34%, 02/10/05 (3)

    577    577

1.41%, 11/01/04 (3)

    1,082    1,082

1.77%, 05/10/05 (3)

    722    722

1.90%, 05/11/05 (3)

    722    722

UBS Finance (Delaware)

          

1.10%, 09/08/04 (3)

    1,443    1,442

1.11%, 12/17/04 (3)

    2,165    2,156

1.13%, 08/09/04 (3)

    1,443    1,443

1.14%, 09/29/04 (3)

    1,443    1,441
         
          30,073

REPURCHASE AGREEMENTS—0.22%

          

Banc of America Securities LLC

          

1.34%, 08/02/04 (3) (6)

    3,747    3,747

Bank of America, N.A.

          

1.37%, 08/02/04 (3) (6)

    7,216    7,216

Goldman Sachs & Co.

          

1.37%, 08/02/04 (3) (6)

    7,216    7,216
         
          18,179

U.S. GOVERNMENT AGENCY NOTES—0.09%

          

Federal Home Loan Mortgage Corp.

          

1.28%, 08/19/04 (3)

    577    577

1.63%, 04/15/05 (3)

    1,010    1,012

1.80%, 01/18/05 (3)

    671    666

1.80%, 01/19/05 (3)

    722    715

2.06%, 05/31/05 (3)

    719    707

Federal National Mortgage Association

          

1.28%, 08/20/04 (3)

    1,876    1,875

2.33%, 07/22/05 (3)

    2,165    2,115
         
          7,667

MEDIUM-TERM NOTES—0.06%

          

CC USA Inc.

          

1.29%, 04/15/05 (3) (4)

    1,443      1,443  

1.51%, 02/15/05 (3) (4)

    938      939  

Dorada Finance Inc.

              

1.24%, 08/09/04 (3) (4)

    361      361  

1.48%, 01/18/05 (3) (4)

    1,082      1,082  

K2 USA LLC

              

1.46%, 01/12/05 (3) (4)

    722      722  

Sigma Finance Inc.

              

1.24%, 08/06/04 (3)

    361      361  

WhistleJacket Capital LLC

              

1.32%, 02/04/05 (3) (4)

    361      361  
         
            5,269  

TOTAL SHORT-TERM INVESTMENTS
(Cost: $188,363)

           188,363  
         

TOTAL INVESTMENTS IN SECURITIES — 102.18%
(Cost: $9,081,313) (7)

           8,543,855  

Other Assets, Less Liabilities — (2.18%)

           (182,049 )
         

NET ASSETS — 100.00%

         $ 8,361,806  
         
(1) Non-income earning security.
(2) All or a portion of this security represents a security on loan.
(3) All or a portion of this security represents an investment of securities lending collateral.
(4) Security exempt from registration pursuant to Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.
(5) Issuer is an affiliate of the Fund’s investment adviser.
(6) Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 3.61% to 7.00% and maturity dates ranging from 7/1/13 to 7/1/34.
(7) The cost of investments for federal income tax purposes was $9,081,313. Net unrealized depreciation aggregated $537,458, of which $118,046 represented gross unrealized appreciation on securities and $655,504 represented gross unrealized depreciation on securities.

Schedule of Investments (Unaudited)

iSHARES® MORNINGSTAR MID VALUE INDEX FUND

July 31, 2004

 

Security

    Shares
    Value

COMMON STOCKS—99.78%

            

AGRICULTURE—1.96%

            

Bunge Ltd.

    1,125    $ 45,146

R.J. Reynolds Tobacco Holdings Inc. (1)

    888      63,892

UST Inc.

    1,708      64,819
         
            173,857

AIRLINES—0.16%

            

AMR Corp. (1) (2)

    1,653      13,935
         
            13,935

APPAREL—1.06%

            

Jones Apparel Group Inc. (1)

    1,314      49,078

VF Corp.

    908      45,409
         
            94,487

AUTO MANUFACTURERS—0.26%

            

Navistar International Corp. (2)

    636      22,864
         
            22,864

AUTO PARTS & EQUIPMENT—1.51%

            

American Axle & Manufacturing Holdings Inc.

    318      10,923

Dana Corp.

    1,542      29,745

Delphi Corp.

    5,136      48,843

Lear Corp.

    714      39,363

TRW Automotive Holdings Corp. (2)

    249      5,179
         
            134,053

BANKS—12.19%

            

AmSouth Bancorp

    3,638      89,240

Associated Bancorp

    1,062      31,977

Assurant Inc

    951      23,204

BancorpSouth Inc.

    750      15,840

Banknorth Group Inc.

    1,785      56,959

Charter One Financial Inc.

    2,319      102,987

Colonial BancGroup Inc. (The)

    1,317      25,405

Commerce Bancshares Inc.

    651      30,343

Compass Bancshares Inc.

    1,269      55,950

First Horizon National Corp. (1)

    1,284      55,661

FirstMerit Corp.

    750      19,455

Fulton Financial Corp.

    1,323      27,135

Hibernia Corp. Class A

    1,608      40,682

Hudson United Bancorp

    465      15,926

Huntington Bancshares Inc.

    2,247      54,962

Mercantile Bankshares Corp.

    819      37,191

National Commerce Financial Corp.

    2,106      68,445

North Fork Bancorp Inc. (1)

    1,776      69,353

Regions Financial Corp.

    4,775      141,770

Sky Financial Group Inc.

    1,068      24,938

Trustmark Corp.

    531      15,266

UnionBanCal Corp.

    513      29,780

Valley National Bancorp

    1,023      25,452

Wilmington Trust Corp.

    687      23,976
         
            1,081,897

BEVERAGES—0.38%

            

Coors (Adolph) Co. Class B

    273      18,771

PepsiAmericas Inc.

    786      14,753
         
            33,524

BUILDING MATERIALS—0.39%

          

Lafarge North America Inc.

    309    12,944

Martin Marietta Materials Inc.

    498    21,787
         
          34,731

CHEMICALS—2.54%

          

Ashland Inc.

    729    38,105

Eastman Chemical Co.

    801    35,789

Engelhard Corp.

    1,287    37,838

Lubrizol Corp.

    534    18,492

Lyondell Chemical Co. (1)

    1,473    26,779

RPM International Inc.

    1,200    18,060

Sherwin-Williams Co. (The)

    1,248    50,394
         
          225,457

COMMERCIAL SERVICES—2.00%

          

Convergys Corp. (2)

    1,485    19,661

Deluxe Corp.

    516    22,730

Donnelley (R.R.) & Sons Co.

    2,517    79,890

Service Corp. International (2)

    3,153    20,022

ServiceMaster Co. (The)

    3,009    35,145
         
          177,448

COMPUTERS—1.20%

          

Computer Sciences Corp. (2)

    1,938    91,570

Western Digital Corp. (2)

    2,160    15,142
         
          106,712

DISTRIBUTION & WHOLESALE—0.77%

          

Genuine Parts Co.

    1,815    68,480
         
          68,480

DIVERSIFIED FINANCIAL SERVICES—2.72%

          

Bear Stearns Companies Inc. (The)

    1,091    91,011

CIT Group Inc.

    2,193    76,229

Edwards (A.G.) Inc.

    828    26,910

Providian Financial Corp. (2)

    3,015    41,728

Student Loan Corp.

    42    5,890
         
          241,768

ELECTRIC—14.11%

          

AES Corp. (The) (2)

    6,252    60,332

ALLETE Inc.

    816    22,620

Alliant Energy Corp.

    1,152    29,848

Ameren Corp.

    1,886    84,285

Calpine Corp. (1) (2)

    4,308    16,629

CenterPoint Energy Inc.

    2,808    32,601

Cinergy Corp.

    1,737    66,440

Consolidated Edison Inc. (1)

    2,496    102,261

Constellation Energy Group Inc.

    1,746    67,308

DPL Inc.

    984    19,631

DTE Energy Co. (1)

    1,797    72,185

Edison International

    3,099    83,053

Energy East Corp.

    1,518    36,978

Great Plains Energy Inc.

    768    22,034

Hawaiian Electric Industries Inc. (1)

    831    21,215

MDU Resources Group Inc.

    1,119    27,360

NiSource Inc.

    2,727    56,449

Northeast Utilities (1)

    1,326    24,796

NSTAR

    549    25,693

OGE Energy Corp. (1)

    906    22,550

Pepco Holdings Inc.

    1,782    32,076

Pinnacle West Capital Corp.

    945    38,272

PPL Corp.

    1,842    85,377

Puget Energy Inc.

    1,029    22,226

SCANA Corp.

    1,041    38,121

TECO Energy Inc.

    1,950    25,155

Texas Genco Holdings Inc.

    156    7,237

Wisconsin Energy Corp.

    1,224    39,352

Xcel Energy Inc.

    4,121    70,469
         
          1,252,553

ELECTRONICS—0.32%

          

Arrow Electronics Inc. (2)

    1,194    28,250
         
          28,250

ENGINEERING & CONSTRUCTION—0.44%

          

Fluor Corp. (1)

    861    39,219
         
          39,219

FOOD—2.12%

          

Albertson’s Inc. (1)

    3,296    80,389

Del Monte Foods Co. (2)

    2,055    21,660

SUPERVALU Inc.

    1,401    40,013

Tyson Foods Inc. Class A

    2,442    46,545
         
          188,607

FOREST PRODUCTS & PAPER—2.15%

          

Boise Cascade Corp.

    909    29,315

Bowater Inc. (1)

    576    21,485

Georgia-Pacific Corp.

    2,331    78,322

Louisiana-Pacific Corp.

    1,056    25,006

Temple-Inland Inc.

    543    37,060
         
          191,188

GAS—2.17%

          

AGL Resources Inc.

    615    18,173

KeySpan Corp.

    1,659    59,707

ONEOK Inc.

    993    20,853

Sempra Energy

    2,086    74,574

Vectren Corp.

    786    19,453
         
          192,760

HAND & MACHINE TOOLS—1.25%

          

Black & Decker Corp.

    825    57,676

Snap-On Inc.

    546    17,532

Stanley Works (The)

    846    35,870
         
          111,078

HEALTH CARE-SERVICES—1.23%

          

Health Net Inc. (2)

    1,167    28,160

PacifiCare Health Systems Inc. (2)

    891    27,238

Tenet Healthcare Corp. (2)

    4,821    53,899
         
          109,297

HOME BUILDERS—0.28%

          

KB Home

    387    24,787
         
          24,787

HOME FURNISHINGS—0.61%

          

Maytag Corp.

    762    15,621

Whirlpool Corp.

    618    38,588
         
          54,209

HOUSEWARES—0.69%

          

Newell Rubbermaid Inc.

    2,847    61,495
         
          61,495

INSURANCE—12.56%

          

Allmerica Financial Corp. (2)

    552    16,455

American Financial Group Inc.

    393    11,668

AON Corp.

    2,683    70,939

Berkley (W.R.) Corp.

    753    30,828

CIGNA Corp.

    1,461    90,597

CNA Financial Corp. (2)

    345    9,101

Conseco Inc. (2)

    1,491    26,808

Fidelity National Financial Inc.

    1,653    59,921

First American Corp.

    813    21,837

IPC Holdings Ltd.

    378    14,175

Jefferson-Pilot Corp.

    1,449    69,813

Lincoln National Corp.

    1,854    81,020

Nationwide Financial Services Inc.

    585    20,750

Old Republic International Corp.

    1,770    41,223

PartnerRe Ltd.

    558    29,189

Protective Life Corp.

    663    24,034

Reinsurance Group of America Inc.

    267    10,640

RenaissanceRe Holdings Ltd.

    693    36,729

SAFECO Corp.

    1,443    67,908

St. Paul Travelers Companies Inc.

    6,904    255,931

StanCorp Financial Group Inc.

    300    21,090

Torchmark Corp.

    1,159    60,593

UNUMProvident Corp. (1)

    2,760    44,022
         
          1,115,271

IRON & STEEL—1.28%

          

International Steel Group Inc. (2)

    198    6,481

Nucor Corp.

    744    62,236

United States Steel Corp.

    1,173    44,738
         
          113,455

MACHINERY—0.29%

          

Cummins Inc. (1)

    366    25,411
         
          25,411

MANUFACTURING—4.24%

          

Cooper Industries Ltd.

    963    54,766

Eastman Kodak Co.

    2,960    78,410

Eaton Corp.

    1,560    100,838

Harsco Corp.

    426    19,119

Pentair Inc.

    1,038    32,510

Teleflex Inc.

    375    16,669

Textron Inc.

    1,209    74,112
         
          376,424

MINING—1.04%

          

Owens-Illinois Inc. (2)

    1,167    17,155

Phelps Dodge Corp. (2)

    969    75,524
         
          92,679

OFFICE FURNISHINGS—0.07%

          

Steelcase Inc. Class A

    468    6,107
         
          6,107

OIL & GAS—4.91%

          

Amerada Hess Corp.

    848    70,681

Chesapeake Energy Corp.

    2,508    38,498

Kerr-McGee Corp.

    1,284    67,410

Sunoco Inc.

    783    53,377

Unocal Corp.

    2,724    105,582

Valero Energy Corp.

    1,338    100,243
         
          435,791

PACKAGING & CONTAINERS—0.63%

          

Bemis Co. Inc.

    1,107    29,313

Sonoco Products Co.

    1,014    26,273
         
          55,586

PIPELINES—1.22%

          

El Paso Corp.

    6,639    52,382

National Fuel Gas Co.

    804    20,534

Questar Corp.

    867    35,530
         
          108,446

REAL ESTATE—0.17%

          

Forest City Enterprises Inc. Class A

    288    15,091
         
          15,091

REAL ESTATE INVESTMENT TRUSTS—10.27%

          

AMB Property Corp.

    855    30,045

Annaly Mortgage Management Inc.

    1,221    20,147

Apartment Investment & Management Co. Class A

    975    31,171

Arden Realty Group Inc.

    678    20,611

AvalonBay Communities Inc. (1)

    741    43,126

Boston Properties Inc.

    1,104    58,402

Developers Diversified Realty Corp.

    1,053    37,782

Duke Realty Corp.

    1,380    42,449

Equity Residential

    2,894    85,518

Health Care Property Investors Inc.

    1,368    34,145

Hospitality Properties Trust

    645    25,723

Host Marriott Corp. (2)

    2,784    36,053

iStar Financial Inc.

    1,140    43,320

Kimco Realty Corp.

    978    47,042

Liberty Property Trust

    825    31,680

Macerich Co. (The)

    606    29,027

Mack-Cali Realty Corp.

    627    25,644

New Plan Excel Realty Trust Inc.

    1,038    24,653

Plum Creek Timber Co. Inc.

    1,899    59,591

ProLogis

    1,767    60,149

Rayonier Inc.

    513    22,562

Thornburg Mortgage Inc. (1)

    840    23,293

Trizec Properties Inc.

    942    15,119

Vornado Realty Trust

    1,119    65,003
         
          912,255

RETAIL—4.26%

          

AutoNation Inc. (2)

    2,031    32,740

Blockbuster Inc. (1)

    381    5,056

Borders Group Inc.

    804    18,387

Federated Department Stores Inc.

    1,872    89,706

May Department Stores Co. (The)

    3,003    79,670

Neiman-Marcus Group Inc. Class A (1)

    303    16,529

Neiman-Marcus Group Inc. Class B

    144    7,409

Office Depot Inc. (2)

    3,240    53,136

Rite Aid Corp. (2)

    4,611    22,640

Saks Inc.

    1,302    16,991

Toys R Us Inc. (2)

    2,214    36,442
         
          378,706

SAVINGS & LOANS—2.21%

          

Astoria Financial Corp.

    735    25,108

GreenPoint Financial Corp.

    1,161    47,171

Sovereign Bancorp Inc.

    3,547    77,218

Washington Federal Inc.

    813    20,366

Webster Financial Corp.

    555    26,041
         
          195,904

SEMICONDUCTORS—0.09%

          

MEMC Electronic Materials Inc. (2)

    843    7,663
         
          7,663

TELECOMMUNICATIONS—1.36%

          

CenturyTel Inc.

    1,353    41,929

Qwest Communications International Inc. (2)

    15,105    58,758

3Com Corp. (2)

    4,041    19,922
         
          120,609

TOYS, GAMES & HOBBIES—0.34%

          

Hasbro Inc.

    1,641    29,817
         
          29,817

TRANSPORTATION—2.33%

          

CSX Corp.

    2,223    69,580

Norfolk Southern Corp.

    4,052    108,148

Ryder System Inc.

    678    29,086
         
          206,814

TOTAL COMMON STOCKS
(Cost: $8,983,102)

         8,858,685
         

Security

    Shares or Principal
    Value

SHORT-TERM INVESTMENTS—5.56%

          

MONEY MARKET FUNDS—1.45%

          

Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares (3) (5)

    82,953    82,953

Barclays Global Investors Funds Prime Money Market Fund, Institutional Shares (3) (5)

    40,958    40,958

BlackRock Temp Cash Money Market Fund (3)

    1,880    1,880

Short-Term Investment Co. - Prime Money Market Portfolio (3)

    3,204    3,204
         
          128,995

FLOATING RATE NOTES—1.33%

          

Beta Finance Inc.

          

1.30%, 05/04/05 (3) (4)

    2,234    2,234

1.31%, 10/12/04 (3) (4)

    1,862    1,862

1.34%, 09/15/04 (3) (4)

    3,723    3,723

1.42%, 03/15/05 (3) (4)

    1,862    1,863

1.48%, 08/23/04 (3) (4)

    1,862    1,862

Canadian Imperial Bank of Commerce

          

1.24%, 10/07/04 (3)

    2,793    2,793

1.38%, 11/22/04 (3)

    931    931

1.40%, 10/29/04 (3)

    3,723    3,723

CC USA Inc.

          

1.30%, 05/04/05 (3) (4)

    3,723    3,723

1.61%, 07/29/05 (3) (4)

    3,723    3,722

Depfa Bank PLC

          

1.27%, 06/15/05 (3)

    3,723    3,723

Dorada Finance Inc.

          

1.61%, 07/29/05 (3) (4)

    3,090    3,090

Five Finance Inc.

          

1.42%, 04/29/05 (3) (4)

    2,979    2,979

HBOS Treasury Services PLC

          

1.24%, 04/01/05 (3)

    2,383    2,383

1.58%, 04/22/05 (3)

    3,723    3,723

K2 USA LLC

          

1.34%, 08/16/04 (3) (4)

    931    931

1.41%, 09/27/04 (3) (4)

    4,021    4,021

1.49%, 06/10/05 (3) (4)

    3,723    3,723

1.61%, 07/25/05 (3) (4)

    1,862    1,861

Links Finance LLC

          

1.33%, 04/15/05 (3)

    3,723    3,723

1.68%, 04/25/05 (3)

    3,723    3,725

Nationwide Building Society

          

1.59%, 07/28/05 (3) (4)

    3,723    3,723

1.63%, 12/09/04 (3)

    3,090    3,072

Northern Rock PLC

          

1.56%, 01/13/05 (3) (4)

    3,537    3,537

Permanent Financing PLC

          

1.31%, 03/10/05 (3)

    3,723    3,723

1.32%, 12/10/04 (3)

    1,862    1,862

1.34%, 06/10/05 (3)

    1,676    1,676

Sigma Finance Inc.

          

1.35%, 11/15/04 (3)

    3,723    3,723

1.52%, 10/07/04 (3)

    3,723    3,723

Tango Finance Corp.

          

1.20%, 05/17/05 (3) (4)

    3,090    3,090

1.23%, 02/25/05 (3) (4)

    2,085    2,085

1.32%, 04/07/05 (3) (4)

    1,367    1,366

1.34%, 01/18/05 (3) (4)

    1,638    1,638

1.42%, 07/25/05 (3) (4)

    3,723    3,723

WhistleJacket Capital LLC

          

1.26%, 10/20/04 (3) (4)

    922    920

1.34%, 09/15/04 (3) (4)

    1,862    1,862

1.38%, 07/15/05 (3) (4)

    2,793    2,792

1.48%, 06/15/05 (3) (4)

    1,862    1,861

White Pine Finance LLC

          

1.21%, 05/20/05 (3) (4)

    1,676    1,675

1.33%, 04/15/05 (3) (4)

    2,793    2,793

1.33%, 07/05/05 (3) (4)

    1,862    1,861

1.34%, 11/15/04 (3) (4)

    2,234    2,234

1.35%, 06/15/05 (3) (4)

    1,527    1,527

1.40%, 08/26/04 (3) (4)

    1,862    1,862

1.55%, 07/11/05 (3) (4)

    931    931
         
          117,577

COMMERCIAL PAPER—1.00%

          

Alpine Securitization Corp.

          

1.31%, 08/12/04 (3)

    1,862    1,861

Amsterdam Funding Corp.

          

1.30%, 08/13/04 (3)

    2,793    2,791

1.33%, 08/16/04 (3)

    3,723    3,722

1.35%, 08/20/04 (3)

    1,117    1,116

1.37%, 08/24/04 (3)

    1,303    1,302

Barton Capital Corp.

          

1.29%, 08/10/04 (3)

    1,862    1,861

1.30%, 08/13/04 (3)

    1,530    1,530

1.35%, 08/18/04 (3)

    931    930

Blue Ridge Asset Funding Corp.

          

1.29%, 08/06/04 (3)

    1,862    1,861

Corporate Asset Funding

          

1.42%, 09/03/04 (3)

    1,117    1,116

CRC Funding LLC

          

1.42%, 09/03/04 (3)

    1,862    1,859

Edison Asset Securitization

          

1.07%, 09/21/04 (3)

    1,862    1,859

1.45%, 11/09/04 (3)

    3,723    3,709

1.59%, 12/02/04 (3)

    3,723    3,703

Falcon Asset Securitization Corp.

          

1.29%, 08/09/04 (3)

    3,537    3,536

1.30%, 08/03/04 (3)

    1,862    1,862

1.34%, 08/19/04 (3)

    1,862    1,861

1.37%, 08/24/04 (3)

    1,489    1,488

Ford Credit Auto Receivables

          

1.85%, 01/14/05 (3)

    1,862    1,846

GIRO Funding US Corp.

          

1.55%, 10/15/04 (3)

    2,442    2,434

Grampian Funding LLC

          

1.26%, 10/22/04 (3)

    3,723    3,713

1.44%, 10/27/04 (3)

    3,723    3,711

1.59%, 11/30/04 (3)

    1,862    1,852

Jupiter Securitization Corp.

          

1.30%, 08/12/04 (3)

    1,862    1,861

1.37%, 08/20/04 (3)

    2,491    2,489

Park Avenue Receivables Corp.

          

1.35%, 08/19/04 (3)

    1,862    1,861

Preferred Receivables Funding Corp.

          

1.29%, 08/05/04 (3)

    1,720    1,720

1.36%, 08/23/04 (3)

    1,862    1,860

Receivables Capital Corp.

          

1.30%, 08/12/04 (3)

    1,303    1,303

1.34%, 08/16/04 (3)

    223    223

1.35%, 08/18/04 (3)

    1,676    1,675

1.35%, 08/19/04 (3)

    633    633

Scaldis Capital LLC

          

1.34%, 08/16/04 (3)

    3,723    3,722

1.37%, 08/20/04 (3)

    559    558

1.40%, 08/25/04 (3)

    4,654    4,650

Sydney Capital Corp.

          

1.25%, 10/22/04 (3)

    1,239    1,236

1.31%, 08/12/04 (3)

    1,489    1,489

Thames Asset Global Securitization No. 1 Inc.

          

1.30%, 08/12/04 (3)

    1,965    1,965

1.34%, 08/16/04 (3)

    1,043    1,042

1.36%, 08/20/04 (3)

    2,793    2,791

1.37%, 08/19/04 (3)

    1,040    1,040

1.37%, 08/20/04 (3)

    484    484

Windmill Funding Corp.

          

1.29%, 08/06/04 (3)

    4,654    4,654
         
          88,779

TIME DEPOSITS—0.88%

          

Abbey National Treasury Services PLC

          

1.25%, 01/06/05 (3)

    3,723    3,723

1.33%, 02/10/05 (3)

    1,862    1,862

1.39%, 02/02/05 (3)

    1,862    1,862

1.39%, 04/08/05 (3)

    2,606    2,606

1.40%, 10/25/04 (3)

    3,723    3,723

Bank of New York

          

1.39%, 11/01/04 (3)

    3,723    3,723

1.60%, 12/03/04 (3)

    931    931

Bank of Nova Scotia

          

1.13%, 10/06/04 (3)

    3,723    3,723

1.24%, 10/07/04 (3)

    2,793    2,793

1.42%, 10/29/04 (3)

    2,793    2,793

National City Bank (Cleveland, Ohio)

          

1.25%, 01/06/05 (3)

    3,723    3,724

1.35%, 06/10/05 (3)

    1,862    1,862

1.36%, 06/23/05 (3)

    3,723    3,722

Norddeutsche Landesbank

          

1.59%, 07/27/05 (3)

    3,723    3,722

Nordea Bank PLC

          

2.11%, 06/07/05 (3)

    3,723    3,723

Prudential Funding LLC

          

1.60%, 12/01/04 (3)

    1,862    1,852

Toronto-Dominion Bank

          

1.22%, 03/23/05 (3)

    6,516    6,515

1.34%, 02/10/05 (3)

    1,489    1,489

1.41%, 11/01/04 (3)

    2,793    2,793

1.77%, 05/10/05 (3)

    1,862    1,862

1.90%, 05/11/05 (3)

    1,862    1,862

UBS Finance (Delaware)

          

1.10%, 09/08/04 (3)

    3,723    3,719

1.11%, 12/17/04 (3)

    5,585    5,562

1.13%, 08/09/04 (3)

    3,723    3,723

1.14%, 09/29/04 (3)

    3,723    3,717
         
          77,586

REPURCHASE AGREEMENTS—0.53%

          

Banc of America Securities LLC

          

1.34%, 08/02/04 (3) (6)

    9,676    9,676

Bank of America, N.A.

          

1.37%, 08/02/04 (3) (6)

    18,617    18,617

Goldman Sachs & Co.

          

1.37%, 08/02/04 (3) (6)

    18,617    18,617
         
          46,910

U.S. GOVERNMENT AGENCY NOTES—0.22%

          

Federal Home Loan Mortgage Corp.

          

1.28%, 08/19/04 (3)

    1,489    1,488

1.63%, 04/15/05 (3)

    2,606    2,612

1.80%, 01/18/05 (3)

    1,731    1,717

1.80%, 01/19/05 (3)

    1,862    1,846

2.06%, 05/31/05 (3)

    1,856    1,824

Federal National Mortgage Association

          

1.28%, 08/20/04 (3)

    4,840    4,837

2.33%, 07/22/05 (3)

    5,585    5,457
         
          19,781

MEDIUM-TERM NOTES—0.15%

          

CC USA Inc.

          

1.29%, 04/15/05 (3) (4)

    3,723    3,723

1.51%, 02/15/05 (3) (4)

    2,420    2,422

Dorada Finance Inc.

          

1.24%, 08/09/04 (3) (4)

    931    931

1.48%, 01/18/05 (3) (4)

    2,793    2,793

K2 USA LLC

          

1.46%, 01/12/05 (3) (4)

    1,862    1,862

Sigma Finance Inc.

              

1.24%, 08/06/04 (3)

    931      931  

WhistleJacket Capital LLC

              

1.32%, 02/04/05 (3) (4)

    931      931  
         
            13,593  

TOTAL SHORT-TERM INVESTMENTS
(Cost: $493,221)

           493,221  
         

TOTAL INVESTMENTS IN SECURITIES — 105.34%
(Cost: $9,476,323) (7)

           9,351,906  

Other Assets, Less Liabilities — (5.34%)

           (474,180 )
         

NET ASSETS — 100.00%

         $ 8,877,726  
         
(1) All or a portion of this security represents a security on loan.
(2) Non-income earning security.
(3) All or a portion of this security represents an investment of securities lending collateral.
(4) Security exempt from registration pursuant to Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.
(5) Issuer is an affiliate of the Fund’s investment adviser.
(6) Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 3.61% to 7.00% and maturity dates ranging from 7/1/13 to 7/1/34.
(7) The cost of investments for federal income tax purposes was $9,476,625. Net unrealized depreciation aggregated $124,719, of which $145,024 represented gross unrealized appreciation on securities and $269,743 represented gross unrealized depreciation on securities.

Schedule of Investments (Unaudited)

iSHARES® MORNINGSTAR SMALL CORE INDEX FUND

July 31, 2004

 

Security

    Shares
    Value

COMMON STOCKS—99.95%

            

ADVERTISING—1.18%

            

ADVO Inc.

    3,173    $ 98,331

Catalina Marketing Corp. (1)

    4,824      96,335

Donnelley (R.H.) Corp. (1)

    3,253      147,621
         
            342,287

AEROSPACE & DEFENSE—1.41%

            

Curtiss-Wright Corp.

    1,083      58,211

DRS Technologies Inc. (1)

    2,602      92,943

EDO Corp.

    1,610      38,125

Esterline Technologies Corp. (1)

    2,190      68,744

Moog Inc. Class A (1)

    2,370      86,197

Teledyne Technologies Inc. (1)

    2,950      63,897
         
            408,117

AGRICULTURE—0.38%

            

Delta & Pine Land Co.

    3,738      83,918

Vector Group Ltd.

    1,710      27,001
         
            110,919

AIRLINES—0.30%

            

SkyWest Inc.

    6,077      85,868
         
            85,868

APPAREL—1.06%

            

Gymboree Corp. (1)

    3,170      50,181

K-Swiss Inc. Class A (2)

    1,960      35,280

Oxford Industries Inc.

    1,460      57,772

Warnaco Group Inc. (The) (1)

    3,420      64,638

Wolverine World Wide Inc.

    4,160      97,261
         
            305,132

AUTO MANUFACTURERS—0.26%

            

Wabash National Corp. (1)

    2,600      75,088
         
            75,088

AUTO PARTS & EQUIPMENT—0.04%

            

Collins & Aikman Corp. (1)

    2,350      11,985
         
            11,985

BANKS—9.45%

            

Alabama National Bancorp

    1,460      83,556

Arch Capital Group Ltd. (1)

    3,291      126,703

Boston Private Financial Holdings Inc.

    2,830      65,684

Cathay General Bancorp

    2,456      164,577

CVB Financial Corp.

    3,990      82,433

First Bancorp

    3,890      165,130

First Community Bancorp

    1,350      53,662

First National Bankshares of Florida

    5,005      89,039

First Republic Bank

    1,480      64,084

Fremont General Corp.

    6,983      131,141

Frontier Financial Corp.

    1,920      64,512

Gold Bancorp Inc.

    4,150      64,532

Greater Bay Bancorp

    5,364      141,341

Harleysville National Corp.

    2,580    60,553

Independent Bank Corp. (Michigan)

    1,920    49,114

Main Street Banks Inc. (2)

    1,520    41,602

MB Financial Inc.

    2,690    98,024

Mid-State Bancshares

    2,440    59,463

Oriental Financial Group Inc.

    1,970    50,136

Pacific Capital Bancorp

    4,476    124,075

Prosperity Bancshares Inc.

    1,790    43,372

R&G Financial Corp. Class B

    3,086    108,257

Riggs National Corp.

    2,120    47,255

Sandy Spring Bancorp Inc.

    1,500    46,740

Santander BanCorp

    550    12,650

Silicon Valley Bancshares (1)

    3,690    135,091

Southwest Bancorp of Texas Inc.

    6,788    138,136

Sterling Bancshares Inc.

    4,630    60,375

Sterling Financial Corp. (Pennsylvania)

    1,940    47,142

Texas Regional Bancshares Inc. Class A

    3,141    139,743

Umpqua Holdings Corp.

    4,570    103,328

United Community Banks Inc.

    3,080    70,932
         
          2,732,382

BEVERAGES—0.21%

          

Coca-Cola Bottling Co. Consolidated

    410    23,243

Robert Mondavi Corp. (The) Class A (1)

    1,100    38,159
         
          61,402

BIOTECHNOLOGY—0.81%

          

Applera Corp. - Celera Genomics Group (1)

    7,550    88,637

Bio-Rad Laboratories Inc. Class A (1)

    1,701    89,132

Cambrex Corp.

    2,560    56,448
         
          234,217

BUILDING MATERIALS—0.35%

          

ElkCorp.

    1,750    38,202

NCI Building Systems Inc. (1)

    2,010    61,928
         
          100,130

CHEMICALS—2.20%

          

Arch Chemicals Inc.

    2,410    68,637

IMC Global Inc.

    10,961    149,618

Kronos Worldwide Inc.

    320    9,936

MacDermid Inc.

    2,330    68,176

Minerals Technologies Inc.

    2,143    119,729

Olin Corp.

    7,260    125,453

OM Group Inc. (1)

    2,967    95,003
         
          636,552

COAL—0.67%

          

Arch Coal Inc.

    5,701    192,523
         
          192,523

COMMERCIAL SERVICES—4.66%

          

Albany Molecular Research Inc. (1)

    2,520    29,938

Alderwoods Group Inc. (1)

    4,140    36,784

AMN Healthcare Services Inc. (1)

    1,580    20,382

Bowne & Co. Inc.

    3,620    53,902

CDI Corp.

    1,300    37,076

Chemed Corp.

    1,070    50,076

Consolidated Graphics Inc. (1)

    1,230    53,517

Corrections Corp. of America (1)

    3,366    126,898

Cross Country Healthcare Inc. (1)

    2,590    38,643

First Health Group Corp. (1)

    9,565    134,101

FTI Consulting Inc. (1)

    4,400    75,944

Kelly Services Inc. Class A

    1,910    51,818

Magellan Health Services, Inc. (1)

    3,359    114,307

MAXIMUS Inc. (1)

    1,980    63,301

MPS Group Inc. (1)

    10,970    98,511

National Processing Inc. (1)

    830    21,812

Pre-Paid Legal Services Inc. (1) (2)

    1,590    36,808

Quanta Services Inc. (1)

    8,060    50,617

Sotheby’s Holdings Inc. Class A (1)

    4,670    74,627

Spherion Corp. (1)

    6,250    54,062

TeleTech Holdings Inc. (1)

    3,960    34,650

Watson Wyatt & Co. Holdings

    3,443    90,000
         
          1,347,774

COMPUTERS—2.00%

          

CIBER Inc. (1)

    5,440    40,800

Hutchinson Technology Inc. (1) (2)

    2,700    60,129

Intergraph Corp. (1)

    3,819    100,783

MTS Systems Corp.

    2,050    44,013

PalmOne Inc. (1) (2)

    4,814    193,619

Perot Systems Corp. Class A (1)

    7,795    98,373

Quantum Corp. (1)

    16,170    39,455
         
          577,172

COSMETICS & PERSONAL CARE—0.32%

          

Chattem Inc. (1) (2)

    1,590    45,808

Elizabeth Arden Inc. (1)

    2,380    46,815
         
          92,623

DISTRIBUTION & WHOLESALE—0.76%

          

Aviall Inc. (1)

    2,450    49,122

United Stationers Inc. (1)

    3,536    139,389

WESCO International Inc. (1)

    1,460    30,003
         
          218,514

DIVERSIFIED FINANCIAL SERVICES—2.72%

          

Affiliated Managers Group Inc. (1) (2)

    3,023    138,786

CompuCredit Corp. (1)

    1,820    28,629

Credit Acceptance Corp. (1)

    600    8,040

Financial Federal Corp. (1)

    1,930    62,069

Gabelli Asset Management Inc. Class A

    720    27,878

Investment Technology Group Inc. (1)

    4,540    59,656

Knight Trading Group Inc. (1)

    11,349    96,580

New Century Financial Corp. (2)

    3,538    166,463

Piper Jaffray Companies Inc. (1)

    2,077    84,638

Saxon Capital Inc. (1)

    2,970    69,854

W.P. Stewart & Co. Ltd.

    2,280    44,483
         
          787,076

ELECTRICAL COMPONENTS & EQUIPMENT—0.64%

          

Advanced Energy Industries Inc. (1)

    2,190    21,593

Power-One Inc. (1)

    7,540    66,126

Rayovac Corp. (1)

    3,602    96,281
         
          184,000

ELECTRONICS—3.63%

          

Benchmark Electronics Inc. (1)

    4,285    122,465

Brady Corp. Class A

    2,037    92,072

Checkpoint Systems Inc. (1)

    3,890    66,947

Coherent Inc. (1)

    3,160    83,155

Cubic Corp.

    1,660    33,615

Electro Scientific Industries Inc. (1)

    2,910    74,932

Itron Inc. (1)

    2,160    41,234

KEMET Corp. (1)

    8,467    85,432

Methode Electronics Inc.

    3,680    47,950

Orbotech Ltd. (1)

    3,330    56,673

Paxar Corp. (1)

    3,700    71,336

Plexus Corp. (1)

    4,460    49,997

Thomas & Betts Corp.

    6,135    161,350

Woodward Governor Co.

    1,008    61,861
         
          1,049,019

ENGINEERING & CONSTRUCTION—0.93%

          

Dycom Industries Inc. (1)

    5,059    136,289

EMCOR Group Inc. (1) (2)

    1,589    68,756

McDermott International Inc. (1)

    6,070    64,767
         
          269,812

ENTERTAINMENT—0.85%

          

Isle of Capri Casinos Inc. (1)

    1,720    27,812

Penn National Gaming Inc. (1)

    3,547    127,692

Speedway Motorsports Inc.

    1,400    48,370

Vail Resorts Inc. (1)

    2,100    40,971
         
          244,845

ENVIRONMENTAL CONTROL—1.36%

          

Ionics Inc. (1)

    1,880    50,835

Mine Safety Appliances Co.

    3,173    117,877

Tetra Tech Inc. (1)

    5,849    94,403

Waste Connections Inc. (1)

    4,552    131,371
         
          394,486

FOOD—1.51%

          

American Italian Pasta Co. Class A (2)

    1,870    54,997

Flowers Foods Inc.

    4,605    120,190

Hain Celestial Group Inc. (1)

    3,080    50,912

Ralcorp Holdings Inc. (1)

    3,056    111,452

Sanderson Farms Inc.

    2,075    100,077
         
          437,628

FOREST PRODUCTS & PAPER—0.27%

          

Wausau-Mosinee Paper Corp.

    5,020    78,011
         
          78,011

HAND & MACHINE TOOLS—0.87%

          

Baldor Electric Co.

    3,040    69,555

Franklin Electric Co. Inc.

    1,450    54,926

Lincoln Electric Holding Inc.

    3,718    126,449
         
          250,930

HEALTH CARE-PRODUCTS—3.30%

          

Advanced Medical Optics Inc. (1) (2)

    3,077    117,080

CONMED Corp. (1)

    3,114    69,006

Datascope Corp.

    1,290    44,776

Invacare Corp.

    3,145    127,530

Oakley Inc.

    2,710    29,268

Ocular Sciences Inc. (1)

    1,980    87,377

PSS World Medical Inc. (1)

    6,710    65,691

Sola International Inc. (1)

    3,310    53,821

Steris Corp. (1)

    7,289    149,862

Sybron Dental Specialties Inc. (1)

    4,025    108,272

Viasys Healthcare Inc. (1)

    2,770    41,965

West Pharmaceutical Services Inc.

    1,530    58,278
         
          952,926

HEALTH CARE-SERVICES—2.00%

          

AMERIGROUP Corp. (1)

    2,582    123,833

Apria Healthcare Group Inc. (1)

    5,211    152,943

Molina Healthcare Inc. (1)

    1,640    54,415

Province Healthcare Co. (1)

    4,520    65,676

Sierra Health Services Inc. (1)

    2,620    115,804

Sunrise Senior Living Inc. (1)

    1,869    65,976
         
          578,647

HOME BUILDERS—1.72%

          

Brookfield Homes Corp.

    1,600    43,296

Champion Enterprises Inc. (1) (2)

    7,290    70,932

Fleetwood Enterprises Inc. (1) (2)

    4,050    54,432

Meritage Corp. (1)

    1,078    66,728

Monaco Coach Corp.

    2,820    68,470

Palm Harbor Homes Inc. (1)

    1,110    17,782

Technical Olympic USA Inc.

    440    9,535

William Lyon Homes Inc. (1)

    467    35,711

Winnebago Industries Inc.

    3,550    130,818
         
          497,704

HOME FURNISHINGS—0.62%

          

American Woodmark Corp.

    610    34,715

Ethan Allen Interiors Inc.

    3,888    144,439
         
          179,154

HOUSEHOLD PRODUCTS & WARES—1.04%

          

Central Garden & Pet Co. (1)

    1,630    46,259

Helen of Troy Ltd. (1)

    2,464    77,197

Jarden Corp. (1)

    2,640    95,410

Russ Berrie & Co. Inc.

    1,090    20,754

Standard Register Co. (The)

    1,590    17,426

WD-40 Co.

    1,670    44,055
         
          301,101

HOUSEWARES—0.57%

          

Toro Co.

    2,521    165,126
         
          165,126

INSURANCE—2.41%

          

Bristol West Holdings Inc.

    1,570    27,397

Hilb, Rogal & Hobbs Co.

    3,336    112,056

Philadelphia Consolidated Holding Corp. (1)

    1,935    105,786

ProAssurance Corp. (1)

    2,803    88,827

RLI Corp.

    2,340    86,112

Scottish Re Group Ltd.

    3,640    74,256

State Auto Financial Corp.

    1,140    35,260

Triad Guaranty Inc. (1)

    960    52,224

21st Century Insurance Group

    2,680    34,170

U.S.I. Holdings Corp. (1)

    3,850    53,900

Universal American Financial Corp. (1)

    2,380    25,823
         
          695,811

INTERNET—1.55%

          

Ariba Inc. (1)

    6,027    52,372

CMGI Inc. (1)

    35,320    48,742

EarthLink Inc. (1)

    15,138    149,412

HomeStore Inc. (1)

    10,370    36,554

Priceline.com Inc. (1) (2)

    2,180    51,622

ProQuest Co. (1)

    2,660    66,500

Vignette Corp. (1)

    29,910    42,771
         
          447,973

IRON & STEEL—0.91%

          

Reliance Steel & Aluminum Co.

    2,939    117,031

Steel Dynamics Inc.

    4,496    147,244
         
          264,275

LEISURE TIME—0.21%

          

K2 Inc. (1) (2)

    4,362    62,159
         
          62,159

LODGING—0.70%

          

Ameristar Casinos Inc.

    1,140    30,643

Boyd Gaming Corp.

    4,055    106,606

Kerzner International Ltd. (1)

    1,400    65,674
         
          202,923

MACHINERY—3.68%

          

Applied Industrial Technologies Inc.

    1,830    58,505

Briggs & Stratton Corp.

    2,336    195,056

Flowserve Corp. (1)

    5,659    135,533

Idex Corp.

    4,860    155,957

JLG Industries Inc.

    4,490    62,860

Joy Global Inc.

    4,857    144,204

Manitowoc Co. Inc. (The)

    2,795    94,778

Nordson Corp.

    2,993    125,317

Stewart & Stevenson Services Inc.

    2,730    42,998

Thomas Industries Inc.

    1,600    49,600
         
          1,064,808

MANUFACTURING—2.35%

          

Actuant Corp. Class A (1)

    2,481    90,457

AptarGroup Inc.

    3,539    149,735

Brink’s Co. (The)

    5,922    191,577

CLARCOR Inc.

    2,649    116,556

ESCO Technologies Inc. (1)

    1,330    70,025

Jacuzzi Brands Inc. (1)

    7,800    60,216
         
          678,566

MEDIA—1.21%

          

Insight Communications Co. Inc. (1)

    4,750    41,800

Liberty Corp.

    1,757    77,132

Martha Stewart Living Omnimedia Inc. Class A (1) (2)

    1,180    13,322

Media General Inc. Class A

    2,161    129,141

Mediacom Communications Corp. (1)

    6,370    41,851

Pulitzer Inc.

    1,020    47,175
         
          350,421

METAL FABRICATE & HARDWARE—1.25%

          

Kaydon Corp.

    2,920    85,060

Mueller Industries Inc.

    3,305    125,987

Worthington Industries Inc.

    7,344    150,405
         
          361,452

MINING—0.92%

          

AMCOL International Corp.

    2,560    51,456

Coeur d’Alene Mines Corp. (1) (2)

    22,170    76,708

Meridian Gold Inc. (1)

    10,361    137,387
         
          265,551

OFFICE & BUSINESS EQUIPMENT—0.24%

          

Global Imaging Systems Inc. (1)

    2,270    68,849
         
          68,849

OIL & GAS—3.59%

          

Cimarex Energy Co. (1)

    4,093    133,145

Comstock Resources Inc. (1)

    3,480    73,219

Denbury Resources Inc. (1)

    5,691    124,348

Encore Acquisition Co. (1)

    1,250    36,838

Frontier Oil Corp.

    2,710    58,130

KCS Energy Inc. (1)

    5,060    74,787

Magnum Hunter Resources Inc. (1)

    5,790    62,069

Range Resources Corp. (2)

    7,067    118,372

Remington Oil & Gas Corp. (1)

    2,210    52,267

Southwestern Energy Co. (1)

    3,759    121,002

Stone Energy Corp. (1)

    2,627    118,845

Swift Energy Co. (1)

    2,840    64,440
         
          1,037,462

OIL & GAS SERVICES—3.11%

          

Core Laboratories NV (1)

    2,820    62,040

Hanover Compressor Co. (1)

    6,940    81,476

Hydril Company LP (1)

    1,660    59,179

Key Energy Services Inc. (1)

    13,637    137,461

Lone Star Technologies Inc. (1)

    2,980    99,294

Maverick Tube Corp. (1)

    4,425    127,617

Oceaneering International Inc. (1)

    2,611    86,346

Oil States International Inc. (1)

    2,740    45,100

Universal Compression Holdings Inc. (1)

    1,780    58,402

Veritas DGC Inc. (1)

    3,520    86,698

W-H Energy Services Inc. (1)

    2,830    56,883
         
          900,496

PHARMACEUTICALS—2.33%

          

Alpharma Inc. Class A

    4,190    68,884

Andrx Group (1)

    7,585    196,755

Nabi Biopharmaceuticals (1)

    5,960    68,838

NeighborCare Inc. (1)

    3,771    96,688

Par Pharmaceutical Companies Inc. (1)

    3,578    134,676

Perrigo Co.

    6,412    106,824
         
          672,665

REAL ESTATE—0.45%

          

Jones Lang LaSalle Inc. (1)

    2,880    83,520

Trammell Crow Co. (1)

    3,490    46,801
         
          130,321

REAL ESTATE INVESTMENT TRUSTS—5.77%

          

CarrAmerica Realty Corp.

    5,673    172,970

CBL & Associates Properties Inc.

    3,207    176,706

CenterPoint Properties Trust

    4,870    186,911

Corporate Office Properties Trust

    3,554    90,023

Cousins Properties Inc.

    4,089    131,380

Entertainment Properties Trust

    2,569    90,840

Equity One Inc.

    3,730    67,327

Essex Property Trust Inc.

    2,178    143,530

Heritage Property Investment Trust Inc.

    2,750    75,515

LaSalle Hotel Properties

    2,870    73,874

Maguire Properties Inc.

    3,883    96,104

Manufactured Home Communities Inc.

    2,180    69,084

Post Properties Inc.

    4,156    116,326

Shurgard Storage Centers Inc. Class A

    4,790    177,230
         
          1,667,820

RETAIL—6.29%

          

Big 5 Sporting Goods Corp. (1)

    1,580    33,765

Casey’s General Store Inc. (2)

    4,850    78,473

Cash America International Inc.

    2,930    65,779

CKE Restaurants Inc. (1)

    4,960    71,523

CSK Auto Corp. (1)

    4,380    60,663

Dress Barn Inc. (1)

    2,190    36,683

Electronics Boutique Holdings Corp. (1)

    1,320    33,145

Finish Line Inc. (The) (1)

    2,030    57,794

GameStop Corp. (1)

    2,180    33,572

IHOP Corp.

    2,243    82,969

Insight Enterprises Inc. (1)

    5,066    81,259

Landry’s Restaurants Inc.

    2,404    72,673

Linens ‘n Things Inc. (1)

    4,704    125,220

Men’s Wearhouse Inc. (The) (1)

    3,420    90,596

Movie Gallery Inc.

    2,660    46,257

Nu Skin Enterprises Inc. Class A

    5,668    154,793

Papa John’s International Inc. (1)

    1,310    39,785

Pep Boys-Manny, Moe & Jack Inc.

    6,018    124,573

School Specialty Inc. (1) (2)

    1,910    65,723

Sharper Image Corp. (1)

    1,140    30,438

Sports Authority Inc. (The) (1)

    2,346    59,823

Steak n Shake Co. (The) (1)

    2,660    45,539

Stein Mart Inc. (1)

    2,730    49,522

TBC Corp. (1)

    2,070    49,535

Too Inc. (1)

    3,560    53,329

West Marine Inc. (1) (2)

    1,340    27,684

Zale Corp. (1)

    5,426    147,262
         
          1,818,377

SAVINGS & LOANS—2.31%

          

Bank Mutual Corp.

    3,890    43,879

BankAtlantic Bancorp Inc. Class A

    4,839    88,263

BankUnited Financial Corp. Class A (1)

    2,850    76,494

Brookline Bancorp Inc. (2)

    6,090    86,661

First Niagara Financial Group Inc.

    8,205    100,019

Flagstar Bancorp Inc.

    3,180    62,551

Harbor Florida Bancshares Inc.

    2,260    65,065

Northwest Bancorp Inc.

    1,280    26,803

Sterling Financial Corp. (Washington) (1)

    2,280    72,139

TierOne Corp.

    2,150    45,129
         
          667,003

SEMICONDUCTORS—2.23%

          

AMIS Holdings Inc. (1)

    3,430    50,524

Amkor Technology Inc. (1)

    9,400    38,070

Brooks Automation Inc. (1)

    4,610    66,430

ChipPAC Inc. Class A (1)

    6,170    30,727

ESS Technology Inc. (1)

    3,240    22,194

Helix Technology Corp.

    2,700    38,988

Integrated Device Technology Inc. (1)

    10,998    125,707

Mattson Technology Inc. (1)

    4,170    37,071

MKS Instruments Inc. (1)

    3,700    54,464

Mykrolis Corp. (1)

    4,270    42,700

ON Semiconductor Corp. (1)

    10,510    42,040

Photronics Inc. (1) (2)

    2,900    41,963

TriQuint Semiconductor Inc. (1)

    12,960    52,488
         
          643,366

SOFTWARE—3.20%

          

CCC Information Services Group Inc. (1)

    1,310    23,541

CSG Systems International Inc. (1)

    5,297    86,871

eFunds Corp. (1)

    4,950    80,982

Epicor Software Corp. (1)

    3,520    43,578

infoUSA Inc. (1)

    3,570    32,094

Inter-Tel Inc.

    2,080    45,115

Keane Inc. (1)

    5,802    85,696

ManTech International Corp. Class A (1)

    1,770    25,311

MicroStrategy Inc. Class A (1)

    1,290    51,935

NetIQ Corp. (1)

    5,900    56,227

Parametric Technology Corp. (1)

    27,978    127,020

SERENA Software Inc. (1)

    3,030    46,662

Take-Two Interactive Software Inc. (1) (2)

    4,688    146,828

Wind River Systems Inc. (1)

    7,460    73,108
         
          924,968

TELECOMMUNICATIONS—3.90%

          

Adaptec Inc. (1)

    11,290    84,562

Advanced Fibre Communications Inc. (1)

    9,185    153,941

Anixter International Inc.

    3,300    110,484

Arch Wireless, Inc. Class A (1)

    2,020    56,984

Aspect Communications Corp. (1)

    4,290    36,336

Black Box Corp.

    1,887    71,706

Centennial Communications Corp. (1)

    2,480    13,938

Commonwealth Telephone Enterprises Inc. (1)

    2,254    100,979

CommScope Inc. (1)

    5,372    110,663

Dobson Communications Corp. Class A (1)

    12,440    33,215

Enterasys Networks Inc. (1)

    20,150    33,852

General Communication Inc. Class A (1)

    4,450    35,645

Golden Telecom Inc.

    970    24,483

Infonet Services Corp. Class B (1)

    6,540    10,268

Price Communications Corp. (1)

    4,380    65,262

PTEK Holdings Inc. (1)

    6,010    69,055

Sycamore Networks Inc. (1)

    19,050    71,247

Time Warner Telecom Inc. Class A (1)

    5,160    22,394

Westell Technologies Inc. Class A (1)

    5,470    22,154
         
          1,127,168

TEXTILES—0.27%

          

G&K Services Inc. Class A

    2,032    78,273
         
          78,273

TRANSPORTATION—2.98%

          

EGL Inc. (1)

    3,605    91,603

Florida East Coast Industries Inc.

    2,403    89,320

Genesee & Wyoming Inc. Class A (1)

    2,110    48,952

Kansas City Southern Industries Inc. (1) (2)

    6,554    95,819

Kirby Corp. (1)

    2,040    78,744

Old Dominion Freight Line Inc. (1)

    1,920    55,718

OMI Corp.

    9,621    139,986

Pacer International Inc. (1)

    2,020    31,886

Swift Transportation Co. Inc. (1)

    5,575    111,361

Werner Enterprises Inc.

    5,924    118,065
         
          861,454

TOTAL COMMON STOCKS
(Cost: $29,913,956)

         28,895,311
         

Security

    Shares or Principal
    Value

SHORT-TERM INVESTMENTS—6.15%

          

MONEY MARKET FUNDS—1.55%

          

Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares (3) (5)

    281,232    281,232

Barclays Global Investors Funds Prime Money Market Fund, Institutional Shares (3) (5)

    149,470    149,470

BlackRock Temp Cash Money Market Fund (3)

    6,860    6,860

Short-Term Investment Co. - Prime Money Market Portfolio (3)

    11,691    11,691
         
          449,253

FLOATING RATE NOTES—1.49%

          

Beta Finance Inc.

          

1.30%, 05/04/05 (3) (4)

    8,153    8,152

1.31%, 10/12/04 (3) (4)

    6,794    6,794

1.34%, 09/15/04 (3) (4)

    13,588    13,588

1.42%, 03/15/05 (3) (4)

    6,794    6,797

1.48%, 08/23/04 (3) (4)

    6,794    6,795

Canadian Imperial Bank of Commerce

          

1.24%, 10/07/04 (3)

    10,191    10,191

1.38%, 11/22/04 (3)

    3,397    3,397

1.40%, 10/29/04 (3)

    13,588    13,588

CC USA Inc.

          

1.30%, 05/04/05 (3) (4)

    13,588    13,587

1.61%, 07/29/05 (3) (4)

    13,588    13,585

Depfa Bank PLC

          

1.27%, 06/15/05 (3)

    13,588    13,588

Dorada Finance Inc.

          

1.61%, 07/29/05 (3) (4)

    11,278    11,275

Five Finance Inc.

          

1.42%, 04/29/05 (3) (4)

    10,871    10,870

HBOS Treasury Services PLC

          

1.24%, 04/01/05 (3)

    8,696    8,696

1.58%, 04/22/05 (3)

    13,588    13,588

K2 USA LLC

          

1.34%, 08/16/04 (3) (4)

    3,397    3,397

1.41%, 09/27/04 (3) (4)

    14,675    14,675

1.49%, 06/10/05 (3) (4)

    13,588    13,587

1.61%, 07/25/05 (3) (4)

    6,794    6,793

Links Finance LLC

          

1.33%, 04/15/05 (3)

    13,588    13,586

1.68%, 04/25/05 (3)

    13,588    13,595

Nationwide Building Society

          

1.59%, 07/28/05 (3) (4)

    13,588    13,588

1.63%, 12/09/04 (3)

    11,278    11,212

Northern Rock PLC

          

1.56%, 01/13/05 (3) (4)

    12,909    12,909

Permanent Financing PLC

          

1.31%, 03/10/05 (3)

    13,588    13,588

1.32%, 12/10/04 (3)

    6,794    6,794

1.34%, 06/10/05 (3)

    6,115    6,115

Sigma Finance Inc.

          

1.35%, 11/15/04 (3)

    13,588    13,588

1.52%, 10/07/04 (3)

    13,588    13,588

Tango Finance Corp.

          

1.20%, 05/17/05 (3) (4)

    11,278    11,278

1.23%, 02/25/05 (3) (4)

    7,609    7,609

1.32%, 04/07/05 (3) (4)

    4,987    4,987

1.34%, 01/18/05 (3) (4)

    5,979    5,979

1.42%, 07/25/05 (3) (4)

    13,588    13,587

WhistleJacket Capital LLC

          

1.26%, 10/20/04 (3) (4)

    3,366    3,356

1.34%, 09/15/04 (3) (4)

    6,794    6,794

1.38%, 07/15/05 (3) (4)

    10,191    10,189

1.48%, 06/15/05 (3) (4)

    6,794    6,793

White Pine Finance LLC

          

1.21%, 05/20/05 (3) (4)

    6,115    6,114

1.33%, 04/15/05 (3) (4)

    10,191    10,190

1.33%, 07/05/05 (3) (4)

    6,794    6,793

1.34%, 11/15/04 (3) (4)

    8,153    8,153

1.35%, 06/15/05 (3) (4)

    5,571    5,571

1.40%, 08/26/04 (3) (4)

    6,794    6,795

1.55%, 07/11/05 (3) (4)

    3,397    3,397
         
          429,091

COMMERCIAL PAPER—1.12%

          

Alpine Securitization Corp.

          

1.31%, 08/12/04 (3)

    6,794    6,792

Amsterdam Funding Corp.

          

1.30%, 08/13/04 (3)

    10,191    10,187

1.33%, 08/16/04 (3)

    13,588    13,581

1.35%, 08/20/04 (3)

    4,076    4,074

1.37%, 08/24/04 (3)

    4,756    4,752

Barton Capital Corp.

          

1.29%, 08/10/04 (3)

    6,794    6,792

1.30%, 08/13/04 (3)

    5,585    5,583

1.35%, 08/18/04 (3)

    3,397    3,395

Blue Ridge Asset Funding Corp.

          

1.29%, 08/06/04 (3)

    6,794    6,794

Corporate Asset Funding

          

1.42%, 09/03/04 (3)

    4,076    4,073

CRC Funding LLC

          

1.42%, 09/03/04 (3)

    6,794    6,786

Edison Asset Securitization

          

1.07%, 09/21/04 (3)

    6,794    6,784

1.45%, 11/09/04 (3)

    13,588    13,534

1.59%, 12/02/04 (3)

    13,588    13,515

Falcon Asset Securitization Corp.

          

1.29%, 08/09/04 (3)

    12,909    12,906

1.30%, 08/03/04 (3)

    6,794    6,794

1.34%, 08/19/04 (3)

    6,794    6,790

1.37%, 08/24/04 (3)

    5,435    5,431

Ford Credit Auto Receivables

          

1.85%, 01/14/05 (3)

    6,794    6,736

GIRO Funding US Corp.

          

1.55%, 10/15/04 (3)

    8,910    8,882

Grampian Funding LLC

          

1.26%, 10/22/04 (3)

    13,588    13,550

1.44%, 10/27/04 (3)

    13,588    13,542

1.59%, 11/30/04 (3)

    6,794    6,758

Jupiter Securitization Corp.

          

1.30%, 08/12/04 (3)

    6,794    6,792

1.37%, 08/20/04 (3)

    9,091    9,084

Park Avenue Receivables Corp.

          

1.35%, 08/19/04 (3)

    6,794    6,790

Preferred Receivables Funding Corp.

          

1.29%, 08/05/04 (3)

    6,276    6,275

1.36%, 08/23/04 (3)

    6,794    6,789

Receivables Capital Corp.

          

1.30%, 08/12/04 (3)

    4,756    4,754

1.34%, 08/16/04 (3)

    813    812

1.35%, 08/18/04 (3)

    6,115    6,111

1.35%, 08/19/04 (3)

    2,310    2,309

Scaldis Capital LLC

          

1.34%, 08/16/04 (3)

    13,588    13,581

1.37%, 08/20/04 (3)

    2,038    2,037

1.40%, 08/25/04 (3)

    16,985    16,970

Sydney Capital Corp.

          

1.25%, 10/22/04 (3)

    4,522    4,509

1.31%, 08/12/04 (3)

    5,435    5,433

Thames Asset Global Securitization No. 1 Inc.

          

1.30%, 08/12/04 (3)

    7,171    7,168

1.34%, 08/16/04 (3)

    3,805    3,803

1.36%, 08/20/04 (3)

    10,191    10,184

1.37%, 08/19/04 (3)

    3,796    3,793

1.37%, 08/20/04 (3)

    1,766    1,765

Windmill Funding Corp.

          

1.29%, 08/06/04 (3)

    16,985    16,983
         
          323,973

TIME DEPOSITS—0.98%

          

Abbey National Treasury Services PLC

          

1.25%, 01/06/05 (3)

    13,588    13,588

1.33%, 02/10/05 (3)

    6,794    6,794

1.39%, 02/02/05 (3)

    6,794    6,794

1.39%, 04/08/05 (3)

    9,495    9,495

1.40%, 10/25/04 (3)

    13,588    13,588

Bank of New York

          

1.39%, 11/01/04 (3)

    13,588    13,588

1.60%, 12/03/04 (3)

    3,397    3,396

Bank of Nova Scotia

          

1.13%, 10/06/04 (3)

    13,588    13,588

1.24%, 10/07/04 (3)

    10,191    10,191

1.42%, 10/29/04 (3)

    10,191    10,191

National City Bank (Cleveland, Ohio)

          

1.25%, 01/06/05 (3)

    13,588    13,588

1.35%, 06/10/05 (3)

    6,794    6,796

1.36%, 06/23/05 (3)

    13,588    13,585

Norddeutsche Landesbank

          

1.59%, 07/27/05 (3)

    13,588    13,583

Nordea Bank PLC

          

2.11%, 06/07/05 (3)

    13,588    13,586

Prudential Funding LLC

          

1.60%, 12/01/04 (3)

    6,794    6,758

Toronto-Dominion Bank

          

1.22%, 03/23/05 (3)

    23,779    23,777

1.34%, 02/10/05 (3)

    5,435    5,435

1.41%, 11/01/04 (3)

    10,191    10,191

1.77%, 05/10/05 (3)

    6,794    6,794

1.90%, 05/11/05 (3)

    6,794    6,794

UBS Finance (Delaware)

          

1.10%, 09/08/04 (3)

    13,588    13,573

1.11%, 12/17/04 (3)

    20,382    20,296

1.13%, 08/09/04 (3)

    13,588    13,585

1.14%, 09/29/04 (3)

    13,588    13,564
         
          283,118

REPURCHASE AGREEMENTS—0.59%

              

Banc of America Securities LLC

              

1.34%, 08/02/04 (3) (6)

    35,329      35,329  

Bank of America, N.A.

              

1.37%, 08/02/04 (3) (6)

    67,941      67,941  

Goldman Sachs & Co.

              

1.37%, 08/02/04 (3) (6)

    67,941      67,941  
         
            171,211  

U.S. GOVERNMENT AGENCY NOTES—0.25%

              

Federal Home Loan Mortgage Corp.

              

1.28%, 08/19/04 (3)

    5,435      5,432  

1.63%, 04/15/05 (3)

    9,512      9,533  

1.80%, 01/18/05 (3)

    6,318      6,265  

1.80%, 01/19/05 (3)

    6,794      6,736  

2.06%, 05/31/05 (3)

    6,774      6,657  

Federal National Mortgage Association

              

1.28%, 08/20/04 (3)

    17,665      17,653  

2.33%, 07/22/05 (3)

    20,382      19,916  
         
            72,192  

MEDIUM-TERM NOTES—0.17%

              

CC USA Inc.

              

1.29%, 04/15/05 (3) (4)

    13,588      13,587  

1.51%, 02/15/05 (3) (4)

    8,832      8,840  

Dorada Finance Inc.

              

1.24%, 08/09/04 (3) (4)

    3,397      3,397  

1.48%, 01/18/05 (3) (4)

    10,191      10,191  

K2 USA LLC

              

1.46%, 01/12/05 (3) (4)

    6,794      6,794  

Sigma Finance Inc.

              

1.24%, 08/06/04 (3)

    3,397      3,397  

WhistleJacket Capital LLC

              

1.32%, 02/04/05 (3) (4)

    3,397      3,397  
         
            49,603  

TOTAL SHORT-TERM INVESTMENTS
(Cost: $1,778,441)

           1,778,441  
         

TOTAL INVESTMENTS IN SECURITIES — 106.10%
(Cost: $31,692,397) (7)

           30,673,752  

Other Assets, Less Liabilities — (6.10%)

           (1,762,843 )
         

NET ASSETS — 100.00%

         $ 28,910,909  
         
(1) Non-income earning security.
(2) All or a portion of this security represents a security on loan.
(3) All or a portion of this security represents an investment of securities lending collateral.
(4) Security exempt from registration pursuant to Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.
(5) Issuer is an affiliate of the Fund’s investment adviser.
(6) Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 3.61% to 7.00% and maturity dates ranging from 7/1/13 to 7/1/34.
(7) The cost of investments for federal income tax purposes was $31,694,131. Net unrealized depreciation aggregated $1,020,379, of which $628,784 represented gross unrealized appreciation on securities and $1,649,163 represented gross unrealized depreciation on securities.

Schedule of Investments (Unaudited)

iSHARES® MORNINGSTAR SMALL GROWTH INDEX FUND

July 31, 2004

 

Security

    Shares
    Value

COMMON STOCKS—99.87%

            

ADVERTISING—0.12%

            

ValueVision Media Inc. Class A (1)

    1,092    $ 12,624
         
            12,624

AEROSPACE & DEFENSE—1.24%

            

Armor Holdings Inc. (1)

    1,306      47,669

Engineered Support Systems Inc.

    1,107      62,070

Orbital Sciences Corp. (1)

    2,087      23,896
         
            133,635

AIRLINES—0.37%

            

AirTran Holdings Inc. (1)

    3,616      40,318
         
            40,318

APPAREL—0.63%

            

Carter’s Inc. (1)

    400      10,916

Guess? Inc. (1)

    372      6,026

Quiksilver Inc. (1)

    2,371      51,119
         
            68,061

BANKS—2.01%

            

East West Bancorp Inc.

    2,141      72,195

PrivateBancorp Inc. (2)

    852      23,856

UCBH Holdings Inc. (2)

    1,925      75,248

Wintrust Financial Corp.

    855      45,341
         
            216,640

BIOTECHNOLOGY—3.31%

            

Alexion Pharmaceuticals Inc. (1)

    1,153      18,356

ARIAD Pharmaceuticals Inc. (1)

    2,224      12,277

Digene Corp. (1) (2)

    664      22,669

Encysive Pharmaceuticals Inc. (1)

    2,236      13,796

Enzo Biochem Inc. (1)

    1,212      16,532

Enzon Pharmaceuticals Inc. (1)

    1,860      23,083

Exelixis Inc. (1)

    3,032      24,013

Genencor International Inc. (1)

    372      6,116

Integra LifeSciences Holdings Corp. (1)

    760      24,012

InterMune Inc. (1)

    1,192      14,292

Nektar Therapeutics (1)

    3,560      62,442

Regeneron Pharmaceuticals Inc. (1)

    1,616      13,833

Serologicals Corp. (1)

    1,040      20,384

Telik Inc. (1)

    1,870      36,951

Transkaryotic Therapies Inc. (1)

    1,168      17,415

Vertex Pharmaceuticals Inc. (1)

    3,375      31,151
         
            357,322

BUILDING MATERIALS—0.52%

            

Simpson Manufacturing Co. Inc.

    742      41,559

Trex Co. Inc. (1)

    324      14,450
         
            56,009

CHEMICALS—0.59%

            

Cabot Microelectronics Corp. (1) (2)

    1,063      37,726

Symyx Technologies Inc. (1)

    1,370      26,427
         
            64,153

COMMERCIAL SERVICES—5.53%

          

Aaron Rents Inc.

    1,116    35,846

Advisory Board Co. (The) (1)

    472    15,066

Arbitron Inc. (1)

    1,323    45,551

Bright Horizons Family Solutions Inc. (1)

    560    28,420

CoStar Group Inc. (1)

    612    25,979

Euronet Worldwide Inc. (1)

    1,008    18,144

Exult Inc. (1)

    2,228    11,675

Gartner Inc. Class A (1)

    2,364    29,668

Gartner Inc. Class B (1)

    1,196    14,926

Korn/Ferry International (1)

    1,485    26,478

Labor Ready Inc. (1) (2)

    1,608    22,544

Laureate Education Inc. (1)

    1,779    62,799

Navigant Consulting Inc. (1)

    1,954    40,936

PAREXEL International Corp. (1)

    1,108    21,285

Resources Connection Inc. (1)

    990    38,392

Rollins Inc.

    976    22,594

StarTek Inc.

    376    11,555

Strayer Education Inc.

    595    57,965

Universal Technical Institute Inc. (1)

    320    10,464

University of Phoenix Online (1)

    645    55,580
         
          595,867

COMPUTERS—5.33%

          

Advanced Digital Information Corp. (1)

    2,724    24,298

Anteon International Corp. (1)

    1,209    37,648

Brocade Communications Systems Inc. (1)

    11,051    53,266

CACI International Inc. Class A (1)

    1,246    51,223

Cray Inc. (1)

    3,636    11,599

Echelon Corp. (1)

    1,376    10,251

Electronics For Imaging Inc. (1)

    2,292    46,000

FactSet Research Systems Inc. (2)

    904    39,008

Kronos Inc. (1)

    1,328    58,326

Lexar Media Inc. (1)

    3,176    17,119

Magma Design Automation Inc. (1)

    1,148    20,377

Manhattan Associates Inc. (1)

    1,272    33,021

McDATA Corp. Class A (1) (2)

    3,440    17,716

McDATA Corp. Class B (1)

    1,064    5,150

Mentor Graphics Corp. (1) (2)

    2,999    35,388

Mercury Computer Systems Inc. (1)

    900    21,429

MICROS Systems Inc. (1)

    793    38,556

Silicon Storage Technology Inc. (1)

    3,610    23,970

SRA International Inc. Class A (1)

    632    26,866

Syntel Inc.

    284    4,007
         
          575,218

DISTRIBUTION & WHOLESALE—0.87%

          

ScanSource Inc. (1)

    528    30,941

SCP Pool Corp.

    1,520    62,670
         
          93,611

DIVERSIFIED FINANCIAL SERVICES—0.88%

          

Asset Acceptance Capital Corp. (1)

    60    1,033

eSpeed, Inc. (1)

    1,120    12,062

National Financial Partners Corp.

    1,149    38,698

Nelnet Inc. Class A (1)

    344    7,647

Ritchie Bros. Auctioneers Inc.

    1,181    34,934
         
          94,374

ELECTRICAL COMPONENTS & EQUIPMENT—0.57%

          

Littelfuse Inc. (1)

    945    36,666

Vicor Corp. (1)

    400    5,360

Wilson Greatbatch Technologies Inc. (1)

    900    19,710
         
          61,736

ELECTRONICS—4.80%

          

Analogic Corp.

    468    19,441

Cymer Inc. (1)

    1,566    44,850

Dionex Corp. (1)

    898    42,377

FEI Co. (1)

    1,048    21,075

Flir Systems Inc. (1)

    1,434    91,245

Identix Inc. (1)

    3,304    17,809

InVision Technologies Inc. (1)

    670    33,272

Photon Dynamics Inc. (1)

    708    19,463

Rogers Corp. (1)

    692    34,219

Taser International Inc. (1) (2)

    1,204    37,745

Technitrol Inc. (1)

    1,564    28,934

Trimble Navigation Ltd. (1)

    2,167    60,178

TTM Technologies Inc. (1)

    920    10,562

Varian Inc. (1)

    1,483    56,206
         
          517,376

ENERGY - ALTERNATE SOURCES—0.82%

          

FuelCell Energy Inc. (1) (2)

    1,848    18,369

Headwaters Inc. (1)

    1,429    39,640

KFx Inc. (1) (2)

    2,048    16,241

Plug Power Inc. (1)

    2,260    14,091
         
          88,341

ENTERTAINMENT—1.85%

          

Alliance Gaming Corp. (1)

    2,005    28,531

Gaylord Entertainment Co. (1)

    1,690    49,280

Macrovision Corp. (1)

    1,811    39,190

Scientific Games Corp. Class A (1)

    2,703    48,140

Shuffle Master Inc. (1)

    1,067    34,133
         
          199,274

FOOD—0.28%

          

United Natural Foods Inc. (1)

    1,405    30,446
         
          30,446

HEALTH CARE-PRODUCTS—7.81%

          

Advanced Neuromodulation Systems Inc. (1)

    858    27,499

Align Technology Inc. (1)

    1,340    23,021

American Medical Systems Holdings Inc. (1)

    990    31,502

Arrow International Inc.

    946    26,223

ArthroCare Corp. (1)

    904    24,074

Biosite Inc. (1) (2)

    671    29,652

CTI Molecular Imaging Inc. (1)

    1,136    11,894

Cyberonics Inc. (1)

    788    22,048

Diagnostic Products Corp.

    971    38,986

Epix Medical Inc. (1)

    824    14,873

Gen-Probe Inc. (1)

    2,098    78,507

Haemonetics Corp. (1)

    1,067    32,010

ICU Medical Inc. (1)

    532    14,790

Immucor Inc. (1)

    1,266    25,649

Intuitive Surgical Inc. (1)

    1,400    32,032

Kyphon Inc. (1)

    1,153    31,166

Laserscope (1)

    704    13,425

Mentor Corp.

    1,579    49,723

Merit Medical Systems Inc. (1)

    1,116    18,838

PolyMedica Corp.

    1,116    33,993

ResMed Inc. (1)

    1,445    70,805

TECHNE Corp. (1)

    1,751    69,690

Thoratec Corp. (1)

    2,052    20,930

Ventana Medical Systems Inc. (1)

    600    29,958

VISX Inc. (1)

    1,856    39,737

Wright Medical Group Inc. (1)

    1,122    31,001
         
          842,026

HEALTH CARE-SERVICES—3.15%

          

American Healthways Inc. (1)

    1,319    35,916

AmSurg Corp. (1)

    1,290    30,638

Centene Corp. (1)

    864    33,696

Inveresk Research Group Inc. (1)

    893    32,416

LabOne Inc. (1) (2)

    724    21,365

LifePoint Hospitals Inc. (1)

    1,520    50,783

Odyssey Healthcare Inc. (1) (2)

    1,569    26,955

Pediatrix Medical Group Inc. (1)

    1,047    66,212

United Surgical Partners International Inc. (1)

    1,000    35,240

VistaCare Inc. Class A (1) (2)

    320    5,907
         
          339,128

HOME FURNISHINGS—0.31%

          

Tempur-Pedic International Inc. (1)

    1,436    18,051

TiVo Inc. (1) (2)

    2,656    15,006
         
          33,057

HOUSEHOLD PRODUCTS & WARES—0.57%

          

Yankee Candle Co. Inc. (The) (1)

    2,126    61,697
         
          61,697

INSURANCE—0.19%

          

Direct General Corp.

    700    20,818
         
          20,818

INTERNET—9.86%

          

Akamai Technologies Inc. (1) (2)

    4,610    68,827

aQuantive, Inc. (1)

    2,584    22,067

Ask Jeeves Inc. (1)

    2,416    70,257

@Road Inc. (1)

    1,488    5,878

Avocent Corp. (1)

    2,097    62,784

CNET Networks Inc. (1)

    5,653    51,612

Digital Insight Corp. (1) (2)

    1,284    19,042

Digital River Inc. (1)

    1,285    36,109

Digitas Inc. (1)

    2,160    14,450

DoubleClick Inc. (1)

    5,449    28,171

eResearch Technology Inc. (1)

    2,006    49,969

F5 Networks Inc. (1)

    1,253    32,816

InfoSpace Inc. (1)

    1,078    40,382

Internet Security Systems Inc. (1)

    1,828    28,005

Ipass, Inc. (1)

    2,028    10,748

j2 Global Communications Inc. (1)

    980    25,000

Macromedia Inc. (1)

    2,945    59,489

NetFlix Inc. (1) (2)

    1,124    23,042

1-800-FLOWERS.COM Inc. (1)

    1,060    7,992

Openwave Systems Inc. (1)

    2,754    31,313

Opsware Inc. (1)

    2,576    15,868

Overstock.com Inc. (1)

    444    15,571

RealNetworks Inc. (1)

    4,756    26,824

RSA Security Inc. (1) (2)

    2,643    49,213

S1 Corp. (1)

    2,820    23,321

Sapient Corp. (1)

    3,376    23,598

SonicWALL Inc. (1)

    2,452    16,257

TIBCO Software Inc. (1)

    6,955    49,172

United Online Inc. (1) (2)

    1,977    30,841

ValueClick Inc. (1)

    3,386    35,147

Verity Inc. (1)

    1,564    17,407

WebEx Communications Inc. (1)

    1,144    23,475

webMethods Inc. (1)

    2,236    10,666

Websense Inc. (1)

    982    37,503
         
          1,062,816

LEISURE TIME—0.42%

          

Multimedia Games Inc. (1)

    1,165    22,053

WMS Industries Inc. (1) (2)

    864    23,535
         
          45,588

LODGING—0.66%

          

Boca Resorts Inc. Class A (1)

    1,407    27,437

Choice Hotels International Inc.

    827    43,500
         
          70,937

MACHINERY—1.08%

          

Cognex Corp.

    1,668    50,173

Unova Inc. (1)

    2,027    34,277

Wabtec Corp.

    1,771    32,232
         
          116,682

MANUFACTURING—0.79%

          

CUNO Inc. (1)

    724    38,126

Matthews International Corp. Class A

    1,371    46,998
         
          85,124

MEDIA—1.86%

          

Central European Media Enterprises Ltd. (1)

    640    14,739

Crown Media Holdings Inc. (1)

    412    2,872

Cumulus Media Inc. Class A (1)

    2,253    33,074

Emmis Communications Corp. (1)

    2,178    42,950

Entravision Communications Corp. (1)

    2,020    14,281

Information Holdings Inc. (1)

    540    14,742

Lin TV Corp. Class A (1) (2)

    1,128    20,473

Saga Communications Inc. (1)

    784    13,955

Salem Communications Corp. Class A (1)

    388    9,855

Sinclair Broadcast Group Inc. Class A

    1,972    19,543

Spanish Broadcasting System Inc. Class A (1)

    1,576    13,538
         
          200,022

MINING—0.55%

          

Apex Silver Mines Ltd. (1)

    1,787    32,041

Hecla Mining Co. (1)

    5,020    27,108
         
          59,149

OFFICE & BUSINESS EQUIPMENT—0.21%

          

Imagistics International Inc. (1)

    708    23,010
         
          23,010

OIL & GAS—2.41%

          

Atwood Oceanics Inc. (1)

    460    17,784

Grey Wolf Inc. (1)

    7,983    35,844

Helmerich & Payne Inc.

    1,978    50,083

Penn Virginia Corp.

    696    26,232

Quicksilver Resources Inc. (1)

    1,117    35,375

Spinnaker Exploration Co. (1)

    1,148    41,064

Unit Corp. (1)

    1,649    53,180
         
          259,562

OIL & GAS SERVICES—1.64%

          

Cal Dive International Inc. (1) (2)

    1,526    47,306

CARBO Ceramics Inc.

    416    29,465

Global Industries Ltd. (1)

    3,272    16,524

Seacor Holdings Inc. (1)

    753    31,852

Superior Energy Services Inc. (1)

    2,396    26,787

Tetra Technologies Inc. (1)

    928    24,453
         
          176,387

PHARMACEUTICALS—8.43%

          

Abgenix Inc. (1)

    3,342    32,668

Adolor Corp. (1)

    1,352    14,399

Alkermes Inc. (1)

    3,820    41,218

AtheroGenics Inc. (1)

    1,556    22,375

Atrix Laboratories Inc. (1)

    938    30,213

CIMA Labs Inc. (1)

    608    20,581

Connetics Corp. (1) (2)

    1,496    41,185

CV Therapeutics Inc. (1)

    1,336    17,889

Dendreon Corp. (1) (2)

    2,348    21,625

Discovery Laboratories Inc. (1)

    1,880    14,457

First Horizon Pharmaceutical Corp. (1)

    1,028    17,959

Genta Inc. (1)

    1,980    3,406

ILEX Oncology Inc. (1)

    1,571    39,574

Impax Laboratories Inc. (1)

    2,083    29,474

Inspire Pharmaceuticals Inc. (1)

    1,448    18,954

Kos Pharmaceuticals Inc. (1)

    488    14,430

K-V Pharmaceuticals Co. Class A (1)

    1,412    24,583

Ligand Pharmaceuticals Inc. Class B (1)

    2,897    40,008

Medarex Inc. (1) (2)

    3,356    20,606

Medicines Co. (The) (1)

    1,910    50,539

NPS Pharmaceuticals Inc. (1) (2)

    1,595    29,747

Onyx Pharmaceuticals Inc. (1)

    1,464    49,966

Priority Healthcare Corp. Class B (1)

    1,574    35,258

Salix Pharmaceuticals Ltd. (1)

    1,530    32,620

Tanox Inc. (1) (2)

    1,020    15,983

Taro Pharmaceutical Industries Ltd. (1) (2)

    1,154    25,769

Tularik Inc. (1)

    2,289    57,088

United Therapeutics Inc. (1)

    908    22,482

USANA Health Sciences Inc. (1)

    408    12,138

VCA Antech Inc. (1)

    1,590    66,828

Vicuron Pharmaceuticals Inc. (1)

    2,316    23,299

Zymogenetics Inc. (1)

    1,304    21,151
         
          908,472

REAL ESTATE INVESTMENT TRUSTS—0.72%

          

Affordable Residential Communities Inc.

    1,040    15,912

American Financial Realty Trust (2)

    4,673    61,917
         
          77,829

RETAIL—7.67%

          

AC Moore Arts & Crafts Inc. (1)

    556    13,983

Aeropostale Inc. (1)

    2,362    71,994

Bebe Stores Inc. (1)

    316    6,140

CEC Entertainment Inc. (1)

    1,591    57,833

Children’s Place Retail Stores Inc. (The) (1)

    596    12,218

Christopher & Banks Corp.

    1,596    26,127

Coldwater Creek Inc. (1)

    810    15,244

Copart Inc. (1)

    2,852    63,457

Cost Plus Inc. (1)

    932    31,185

Dick’s Sporting Goods Inc. (1)

    1,189    38,643

Fred’s Inc.

    1,408    25,414

Guitar Center Inc. (1)

    956    42,972

Hibbet Sporting Goods Inc. (1)

    868    16,544

Hot Topic Inc. (1)

    2,000    31,840

Kenneth Cole Productions Inc. Class A

    404    12,964

99 Cents Only Stores (1) (2)

    2,169    31,082

P.F. Chang’s China Bistro Inc. (1) (2)

    1,032    45,852

Panera Bread Co. Class A (1) (2)

    1,224    45,153

Rare Hospitality International Inc. (1)

    1,433    40,425

Red Robin Gourmet Burgers Inc. (1)

    616    21,006

Select Comfort Corp. (1)

    1,372    28,030

Sonic Corp. (1)

    2,529    58,167

Tractor Supply Co. (1)

    1,501    54,426

Tuesday Morning Corp. (1)

    1,124    36,148
         
          826,847

SAVINGS & LOANS—1.21%

          

Commercial Capital Bancorp Inc. (1)

    1,692    37,173

Fidelity Bankshares Inc.

    596    20,377

Ocwen Financial Corp. (1)

    1,680    14,885

Provident Financial Services Inc.

    3,307    58,369
         
          130,804

SEMICONDUCTORS—8.31%

          

Actel Corp. (1)

    1,092    16,402

Applied Micro Circuits Corp. (1)

    13,296    47,866

Artisan Components Inc. (1) (2)

    864    21,021

ATMI Inc. (1)

    1,337    27,221

Cirrus Logic Inc. (1)

    3,580    21,766

Conexant Systems Inc. (1)

    19,728    31,368

Credence Systems Corp. (1) (2)

    3,242    29,048

Cree Inc. (1) (2)

    3,161    70,743

DSP Group Inc. (1)

    1,249    24,618

Emulex Corp. (1)

    3,519    37,970

Entegris Inc. (1)

    1,996    17,764

Exar Corp. (1)

    1,736    23,384

Genesis Microchip Inc. (1)

    1,364    15,672

Lattice Semiconductor Corp. (1)

    4,516    22,128

LTX Corp. (1)

    2,584    21,008

Micrel Inc. (1)

    2,874    29,516

Microsemi Corp. (1)

    2,546    31,189

OmniVision Technologies Inc. (1) (2)

    2,383    28,072

Pixelworks Inc. (1)

    1,680    16,447

Power Integrations Inc. (1)

    1,318    26,597

Semtech Corp. (1)

    3,211    63,738

SigmaTel Inc. (1)

    1,137    17,362

Silicon Image Inc. (1)

    3,002    35,994

Siliconix Inc. (1)

    248    10,570

Skyworks Solutions Inc. (1)

    6,038    50,598

Standard Microsystems Corp. (1)

    696    11,978

Tessera Technologies Inc. (1)

    532    9,257

Transmeta Corp. (1)

    6,380    7,209

Varian Semiconductor Equipment Associates Inc. (1)

    1,553    46,388

Veeco Instruments Inc. (1)

    1,105    25,139

Vitesse Semiconductor Corp. (1)

    9,297    26,032

Zoran Corp. (1)

    1,831    32,390
         
          896,455

SOFTWARE—6.19%

          

Advent Software Inc. (1)

    1,324    20,999

Altiris Inc. (1)

    836    20,992

ANSYS Inc. (1)

    652    30,931

Ascential Software Corp. (1)

    2,541    31,204

Avid Technology Inc. (1) (2)

    1,347    62,959

Borland Software Corp. (1)

    3,428    28,350

Cerner Corp. (1) (2)

    1,216    54,720

Dendrite International Inc. (1)

    1,612    24,035

Eclipsys Corp. (1) (2)

    1,600    24,016

FileNET Corp. (1)

    1,667    31,673

Hyperion Solutions Corp. (1)

    1,662    68,175

IDX Systems Corp. (1)

    900    27,027

Informatica Corp. (1)

    3,640    22,095

Lawson Software Inc. (1)

    2,520    17,892

Manugistics Group Inc. (1)

    3,032    8,338

Micromuse Inc. (1)

    3,324    14,958

NDCHealth Corp.

    1,384    29,078

Pinnacle Systems Inc. (1)

    2,924    11,550

Progress Software Corp. (1)

    1,529    31,543

Quest Software Inc. (1)

    1,932    23,300

Renaissance Learning Inc.

    224    4,771

ScanSoft Inc. (1)

    2,856    11,653

THQ Inc. (1)

    1,630    31,052

Transaction Systems Architects Inc. Class A (1)

    1,593    27,240

Verint Systems Inc. (1)

    288    9,133
         
          667,684

TELECOMMUNICATIONS—4.36%

          

Aeroflex Inc. (1)

    3,177    35,233

Alamosa Holdings Inc. (1)

    2,936    22,548

Arris Group Inc. (1)

    2,628    11,550

Atheros Communications, Inc. (1)

    388    2,817

Extreme Networks Inc. (1)

    4,816    26,103

Foundry Networks Inc. (1)

    5,065    51,967

Harmonic Inc. (1)

    2,796    18,202

IDT Corp. (1)

    492    7,626

IDT Corp. Class B (1)

    1,792    28,224

InterDigital Communications Corp. (1)

    2,364    45,483

Ixia (1)

    1,112    8,674

Newport Corp. (1)

    1,672    23,976

RF Micro Devices Inc. (1)

    7,952    47,076

Sonus Networks Inc. (1)

    10,452    53,201

Tekelec (1)

    2,654    51,567

Viasat Inc. (1)

    1,036    18,772

Wireless Facilities Inc. (1)

    2,348    17,563
         
          470,582

TOYS, GAMES & HOBBIES—0.21%

          

LeapFrog Enterprises Inc. (1) (2)

    1,160    22,968
         
          22,968

TRANSPORTATION—1.48%

          

Forward Air Corp. (1)

    740    29,385

Heartland Express Inc.

    1,308    35,329

Knight Transportation Inc. (1)

    1,576    31,221

Landstar System Inc. (1)

    1,274    63,458
         
          159,393

TRUCKING & LEASING—0.06%

          

AMERCO (1)

    280    6,350
         
          6,350

TOTAL COMMON STOCKS
(Cost: $11,901,881)

         10,768,392
         

Security

    Shares or Principal
    Value

SHORT-TERM INVESTMENTS—9.20%

          

MONEY MARKET FUNDS—2.29%

          

Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares (3) (5)

    152,845    152,845

Barclays Global Investors Funds Prime Money Market Fund, Institutional Shares (3) (5)

    83,773    83,773

BlackRock Temp Cash Money Market Fund (3)

    3,845    3,845

Short-Term Investment Co. - Prime Money Market Portfolio (3)

    6,552    6,552
         
          247,015

FLOATING RATE NOTES—2.23%

          

Beta Finance Inc.

          

1.30%, 05/04/05 (3) (4)

    4,569    4,569

1.31%, 10/12/04 (3) (4)

    3,808    3,808

1.34%, 09/15/04 (3) (4)

    7,616    7,616

1.42%, 03/15/05 (3) (4)

    3,808    3,810

1.48%, 08/23/04 (3) (4)

    3,808    3,808

Canadian Imperial Bank of Commerce

          

1.24%, 10/07/04 (3)

    5,712    5,712

1.38%, 11/22/04 (3)

    1,904    1,904

1.40%, 10/29/04 (3)

    7,616    7,616

CC USA Inc.

          

1.30%, 05/04/05 (3) (4)

    7,616    7,615

1.61%, 07/29/05 (3) (4)

    7,616    7,613

Depfa Bank PLC

          

1.27%, 06/15/05 (3)

    7,616    7,616

Dorada Finance Inc.

          

1.61%, 07/29/05 (3) (4)

    6,321    6,319

Five Finance Inc.

          

1.42%, 04/29/05 (3) (4)

    6,093    6,092

HBOS Treasury Services PLC

          

1.24%, 04/01/05 (3)

    4,874    4,874

1.58%, 04/22/05 (3)

    7,616    7,616

K2 USA LLC

          

1.34%, 08/16/04 (3) (4)

    1,904    1,904

1.41%, 09/27/04 (3) (4)

    8,225    8,225

1.49%, 06/10/05 (3) (4)

    7,616    7,615

1.61%, 07/25/05 (3) (4)

    3,808    3,807

Links Finance LLC

          

1.33%, 04/15/05 (3)

    7,616    7,615

1.68%, 04/25/05 (3)

    7,616    7,619

Nationwide Building Society

          

1.59%, 07/28/05 (3) (4)

    7,616    7,616

1.63%, 12/09/04 (3)

    6,321    6,284

Northern Rock PLC

          

1.56%, 01/13/05 (3) (4)

    7,235    7,235

Permanent Financing PLC

          

1.31%, 03/10/05 (3)

    7,616    7,616

1.32%, 12/10/04 (3)

    3,808    3,808

1.34%, 06/10/05 (3)

    3,427    3,427

Sigma Finance Inc.

          

1.35%, 11/15/04 (3)

    7,616    7,616

1.52%, 10/07/04 (3)

    7,616    7,615

Tango Finance Corp.

          

1.20%, 05/17/05 (3) (4)

    6,321    6,321

1.23%, 02/25/05 (3) (4)

    4,265    4,264

1.32%, 04/07/05 (3) (4)

    2,795    2,795

1.34%, 01/18/05 (3) (4)

    3,351    3,351

1.42%, 07/25/05 (3) (4)

    7,616    7,615

WhistleJacket Capital LLC

          

1.26%, 10/20/04 (3) (4)

    1,886    1,881

1.34%, 09/15/04 (3) (4)

    3,808    3,808

1.38%, 07/15/05 (3) (4)

    5,712    5,711

1.48%, 06/15/05 (3) (4)

    3,808    3,807

White Pine Finance LLC

          

1.21%, 05/20/05 (3) (4)

    3,427    3,427

1.33%, 04/15/05 (3) (4)

    5,712    5,711

1.33%, 07/05/05 (3) (4)

    3,808    3,807

1.34%, 11/15/04 (3) (4)

    4,569    4,569

1.35%, 06/15/05 (3) (4)

    3,122    3,122

1.40%, 08/26/04 (3) (4)

    3,808    3,808

1.55%, 07/11/05 (3) (4)

    1,904    1,904
         
          240,491

COMMERCIAL PAPER—1.68%

          

Alpine Securitization Corp.

          

1.31%, 08/12/04 (3)

    3,808    3,806

Amsterdam Funding Corp.

          

1.30%, 08/13/04 (3)

    5,712    5,710

1.33%, 08/16/04 (3)

    7,616    7,612

1.35%, 08/20/04 (3)

    2,285    2,283

1.37%, 08/24/04 (3)

    2,666    2,663

Barton Capital Corp.

          

1.29%, 08/10/04 (3)

    3,808    3,807

1.30%, 08/13/04 (3)

    3,130    3,129

1.35%, 08/18/04 (3)

    1,904    1,903

Blue Ridge Asset Funding Corp.

          

1.29%, 08/06/04 (3)

    3,808    3,807

Corporate Asset Funding

          

1.42%, 09/03/04 (3)

    2,285    2,282

CRC Funding LLC

          

1.42%, 09/03/04 (3)

    3,808    3,803

Edison Asset Securitization

          

1.07%, 09/21/04 (3)

    3,808    3,802

1.45%, 11/09/04 (3)

    7,616    7,585

1.59%, 12/02/04 (3)

    7,616    7,575

Falcon Asset Securitization Corp.

          

1.29%, 08/09/04 (3)

    7,235    7,233

1.30%, 08/03/04 (3)

    3,808    3,808

1.34%, 08/19/04 (3)

    3,808    3,805

1.37%, 08/24/04 (3)

    3,046    3,044

Ford Credit Auto Receivables

          

1.85%, 01/14/05 (3)

    3,808    3,776

GIRO Funding US Corp.

          

1.55%, 10/15/04 (3)

    4,994    4,978

Grampian Funding LLC

          

1.26%, 10/22/04 (3)

    7,616    7,595

1.44%, 10/27/04 (3)

    7,616    7,590

1.59%, 11/30/04 (3)

    3,808    3,788

Jupiter Securitization Corp.

          

1.30%, 08/12/04 (3)

    3,808    3,806

1.37%, 08/20/04 (3)

    5,095    5,091

Park Avenue Receivables Corp.

          

1.35%, 08/19/04 (3)

    3,808    3,805

Preferred Receivables Funding Corp.

          

1.29%, 08/05/04 (3)

    3,518    3,517

1.36%, 08/23/04 (3)

    3,808    3,805

Receivables Capital Corp.

          

1.30%, 08/12/04 (3)

    2,666    2,665

1.34%, 08/16/04 (3)

    455    455

1.35%, 08/18/04 (3)

    3,427    3,425

1.35%, 08/19/04 (3)

    1,295    1,294

Scaldis Capital LLC

          

1.34%, 08/16/04 (3)

    7,616    7,612

1.37%, 08/20/04 (3)

    1,142    1,142

1.40%, 08/25/04 (3)

    9,520    9,511

Sydney Capital Corp.

          

1.25%, 10/22/04 (3)

    2,535    2,527

1.31%, 08/12/04 (3)

    3,046    3,045

Thames Asset Global Securitization No. 1 Inc.

          

1.30%, 08/12/04 (3)

    4,019    4,018

1.34%, 08/16/04 (3)

    2,132    2,131

1.36%, 08/20/04 (3)

    5,712    5,708

1.37%, 08/19/04 (3)

    2,127    2,126

1.37%, 08/20/04 (3)

    990    989

Windmill Funding Corp.

          

1.29%, 08/06/04 (3)

    9,520    9,518
         
          181,574

TIME DEPOSITS—1.47%

          

Abbey National Treasury Services PLC

          

1.25%, 01/06/05 (3)

    7,616    7,616

1.33%, 02/10/05 (3)

    3,808    3,808

1.39%, 02/02/05 (3)

    3,808    3,808

1.39%, 04/08/05 (3)

    5,331    5,320

1.40%, 10/25/04 (3)

    7,616    7,615

Bank of New York

          

1.39%, 11/01/04 (3)

    7,616    7,616

1.60%, 12/03/04 (3)

    1,904    1,904

Bank of Nova Scotia

          

1.13%, 10/06/04 (3)

    7,616    7,616

1.24%, 10/07/04 (3)

    5,712    5,712

1.42%, 10/29/04 (3)

    5,712    5,712

National City Bank (Cleveland, Ohio)

          

1.25%, 01/06/05 (3)

    7,616    7,616

1.35%, 06/10/05 (3)

    3,808    3,809

1.36%, 06/23/05 (3)

    7,616    7,614

Norddeutsche Landesbank

          

1.59%, 07/27/05 (3)

    7,616    7,613

Nordea Bank PLC

          

2.11%, 06/07/05 (3)

    7,616    7,614

Prudential Funding LLC

          

1.60%, 12/01/04 (3)

    3,808    3,787

Toronto-Dominion Bank

          

1.22%, 03/23/05 (3)

    13,328    13,327

1.34%, 02/10/05 (3)

    3,046    3,046

1.41%, 11/01/04 (3)

    5,712    5,712

1.77%, 05/10/05 (3)

    3,808      3,808  

1.90%, 05/11/05 (3)

    3,808      3,808  

UBS Finance (Delaware)

              

1.10%, 09/08/04 (3)

    7,616      7,608  

1.11%, 12/17/04 (3)

    11,424      11,375  

1.13%, 08/09/04 (3)

    7,616      7,614  

1.14%, 09/29/04 (3)

    7,616      7,602  
         
            158,680  

REPURCHASE AGREEMENTS—0.89%

              

Banc of America Securities LLC

              

1.34%, 08/02/04 (3) (6)

    19,801      19,801  

Bank of America, N.A.

              

1.37%, 08/02/04 (3) (6)

    38,079      38,079  

Goldman Sachs & Co.

              

1.37%, 08/02/04 (3) (6)

    38,079      38,079  
         
            95,959  

U.S. GOVERNMENT AGENCY NOTES—0.38%

              

Federal Home Loan Mortgage Corp.

              

1.28%, 08/19/04 (3)

    3,046      3,044  

1.63%, 04/15/05 (3)

    5,331      5,343  

1.80%, 01/18/05 (3)

    3,541      3,511  

1.80%, 01/19/05 (3)

    3,808      3,775  

2.06%, 05/31/05 (3)

    3,797      3,731  

Federal National Mortgage Association

              

1.28%, 08/20/04 (3)

    9,900      9,894  

2.33%, 07/22/05 (3)

    11,424      11,163  
         
            40,461  

MEDIUM-TERM NOTES—0.26%

              

CC USA Inc.

              

1.29%, 04/15/05 (3) (4)

    7,616      7,615  

1.51%, 02/15/05 (3) (4)

    4,950      4,954  

Dorada Finance Inc.

              

1.24%, 08/09/04 (3) (4)

    1,904      1,904  

1.48%, 01/18/05 (3) (4)

    5,712      5,712  

K2 USA LLC

              

1.46%, 01/12/05 (3) (4)

    3,808      3,808  

Sigma Finance Inc.

              

1.24%, 08/06/04 (3)

    1,904      1,904  

WhistleJacket Capital LLC

              

1.32%, 02/04/05 (3) (4)

    1,904      1,904  
         
            27,801  

TOTAL SHORT-TERM INVESTMENTS
(Cost: $991,981)

           991,981  
         

TOTAL INVESTMENTS IN SECURITIES — 109.07%
(Cost: $12,893,862) (7)

           11,760,373  

Other Assets, Less Liabilities — (9.07%)

           (977,742 )
         

NET ASSETS — 100.00%

         $ 10,782,631  
         
(1) Non-income earning security.
(2) All or a portion of this security represents a security on loan.
(3) All or a portion of this security represents an investment of securities lending collateral.
(4) Security exempt from registration pursuant to Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

(5) Issuer is an affiliate of the Fund’s investment adviser.
(6) Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 3.61% to 7.00% and maturity dates ranging from 7/1/13 to 7/1/34.
(7) The cost of investments for federal income tax purposes was $12,894,564. Net unrealized depreciation aggregated $1,134,191, of which $195,734 represented gross unrealized appreciation on securities and $1,329,925 represented gross unrealized depreciation on securities.

Schedule of Investments (Unaudited)

iSHARES® MORNINGSTAR SMALL VALUE INDEX FUND

July 31, 2004

 

Security

    Shares
    Value

COMMON STOCKS—99.92%

            

AEROSPACE & DEFENSE—0.17%

            

Triumph Group Inc. (1) (2)

    596    $ 19,656
         
            19,656

AGRICULTURE—0.86%

            

Loews Corp—Carolina Group

    2,176      51,702

Universal Corp.

    1,024      49,388
         
            101,090

AIRLINES—0.91%

            

Alaska Air Group Inc. (1)

    1,024      21,330

Continental Airlines Inc. Class B (1)

    2,700      24,273

Delta Air Lines Inc. (1) (2)

    4,640      24,082

ExpressJet Holdings Inc. (1)

    1,544      16,830

Northwest Airlines Corp. (1)

    2,316      19,987
         
            106,502

APPAREL—1.30%

            

Kellwood Co.

    1,108      44,486

Phillips-Van Heusen Corp.

    1,032      19,577

Russell Corp.

    1,160      20,520

Stride Rite Corp.

    1,592      16,557

Tommy Hilfiger Corp. (1)

    3,696      51,744
         
            152,884

AUTO PARTS & EQUIPMENT—3.03%

            

ArvinMeritor Inc.

    2,828      56,192

Bandag Inc.

    264      11,788

Cooper Tire & Rubber Co.

    3,024      70,913

Goodyear Tire & Rubber Co. (The) (1)

    7,148      78,271

Modine Manufacturing Co.

    1,248      37,016

Superior Industries International Inc. (2)

    828      27,067

Tenneco Automotive Inc. (1)

    1,708      23,758

Visteon Corp.

    5,012      51,523
         
            356,528

BANKS—10.19%

            

AMCORE Financial Inc.

    948      26,781

Central Pacific Financial Corp.

    560      15,170

Chemical Financial Corp.

    904      31,224

Chittenden Corp.

    1,500      50,955

Citizens Banking Corp.

    1,508      47,351

City Holding Co.

    680      20,720

Community Bank System Inc.

    1,168      26,292

Community First Bankshares Inc.

    1,504      48,429

Corus Bankshares Inc.

    628      25,214

First Charter Corp.

    1,208      27,240

First Commonwealth Financial Corp.

    2,564      32,794

First Financial Bancorp

    1,792      31,181

First Merchants Corp.

    716      17,800

First Midwest Bancorp Inc.

    1,914      64,636

1st Source Corp.

    424      10,210

FNB Corp.

    1,888      38,005

Glacier Bancorp Inc.

    1,000      26,480

Hancock Holding Co.

    1,184    35,556

Irwin Financial Corp. (2)

    716    19,139

National Penn Bancshares Inc.

    900    26,217

NBT Bancorp Inc.

    1,340    29,145

Old National Bancorp

    2,693    64,093

Provident Bankshares Corp.

    1,344    40,172

Republic Bancorp Inc. (2)

    2,608    38,207

S&T Bancorp Inc.

    976    32,472

South Financial Group Inc. (The)

    2,810    76,123

Sterling Bancorp

    584    15,745

Susquehanna Bancshares Inc.

    1,936    45,051

TrustCo Bank Corp. NY

    3,032    38,325

UMB Financial Corp.

    627    31,425

United Bancshares Inc.

    1,676    52,828

Unizan Financial Corp.

    884    24,222

WesBanco Inc.

    716    20,163

Whitney Holding Corp.

    1,656    67,664
         
          1,197,029

BIOTECHNOLOGY—0.27%

          

Cell Genesys Inc. (1)

    1,820    13,122

Incyte Corp. (1) (2)

    2,968    18,253
         
          31,375

BUILDING MATERIALS—2.20%

          

Eagle Materials Inc.

    392    25,864

Eagle Materials Inc. Class B

    381    24,765

Genlyte Group Inc. (The) (1)

    492    30,652

Lennox International Inc.

    2,068    36,438

Texas Industries Inc.

    864    37,005

Universal Forest Products Inc.

    684    20,773

USG Corp. (1) (2)

    1,316    22,688

York International Corp.

    1,700    60,486
         
          258,671

CHEMICALS—4.90%

          

Albemarle Corp.

    1,344    41,395

Crompton Corp.

    4,668    27,868

Cytec Industries Inc.

    1,473    68,642

Ferro Corp.

    1,708    34,006

FMC Corp. (1)

    1,411    62,013

Fuller (H.B.) Co.

    1,160    31,007

Georgia Gulf Corp.

    1,361    48,384

Great Lakes Chemical Corp. (2)

    1,792    42,972

Hercules Inc. (1)

    4,040    47,712

Millennium Chemicals Inc. (1)

    2,648    46,737

NL Industries Inc.

    304    3,970

PolyOne Corp. (1)

    3,740    27,040

Schulman (A.) Inc.

    1,228    25,567

Sensient Technologies Corp.

    1,784    36,822

Spartech Corp.

    1,308    31,261
         
          575,396

COMMERCIAL SERVICES—2.36%

          

ABM Industries Inc.

    1,604    28,856

Banta Corp.

    1,016    40,345

Central Parking Corp. (2)

    908    14,464

Dollar Thrifty Automotive Group Inc. (1)

    956    23,030

NCO Group Inc. (1)

    1,192    29,764

Stewart Enterprises Inc. Class A (1)

    3,680    25,613

United Rentals Inc. (1)

    2,668    52,933

Valassis Communications Inc. (1)

    2,124    62,106
         
          277,111

COMPUTERS—0.77%

          

Gateway Inc. (1)

    9,428    42,426

Imation Corp.

    1,444    47,869
         
          90,295

DISTRIBUTION & WHOLESALE—0.39%

          

Handleman Co.

    1,000    21,470

Watsco Inc.

    840    24,562
         
          46,032

DIVERSIFIED FINANCIAL SERVICES—0.08%

          

LaBranche & Co. Inc. (1)

    1,148    9,402
         
          9,402

ELECTRIC—5.96%

          

Aquila Inc. (1)

    7,976    26,161

Avista Corp.

    1,848    32,248

Black Hills Corp.

    1,320    36,458

CH Energy Group Inc.

    644    28,336

Cleco Corp.

    1,940    33,465

CMS Energy Corp. (1) (2)

    6,668    60,212

Duquesne Light Holdings Inc.

    3,090    58,617

El Paso Electric Co. (1)

    1,940    29,197

Empire District Electric Co. (The)

    1,036    20,627

IDACORP Inc. (2)

    1,556    42,790

MGE Energy Inc.

    752    23,711

Otter Tail Corp.

    916    22,753

PNM Resources Inc.

    2,472    51,517

Sierra Pacific Resources Corp. (1)

    4,780    39,292

UIL Holdings Corp.

    496    22,806

UniSource Energy Corp.

    1,304    32,196

Westar Energy Inc.

    3,488    70,353

WPS Resources Corp.

    1,507    69,156
         
          699,895

ELECTRICAL COMPONENTS & EQUIPMENT—0.37%

          

GrafTech International Ltd. (1) (2)

    3,964    43,723
         
          43,723

ELECTRONICS—0.35%

          

Park Electrochemical Corp.

    736    16,913

Watts Water Technologies Inc. Class A

    932    23,580
         
          40,493

ENGINEERING & CONSTRUCTION—0.98%

          

Granite Construction Inc.

    1,316    23,412

Shaw Group Inc. (The) (1)

    2,576    25,554

URS Corp. (1)

    1,440    34,776

Washington Group International Inc. (1)

    928    31,014
         
          114,756

ENTERTAINMENT—0.82%

          

AMC Entertainment Inc. (1)

    1,104    21,075

Argosy Gaming Co. (1)

    1,132    36,937

Churchill Downs Inc.

    360    13,871

Magna Entertainment Corp. Class A (1)

    932    6,086

Six Flags Inc. (1)

    3,792    17,898
         
          95,867

FOOD—2.03%

          

Chiquita Brands International Inc. (1)

    1,660    32,436

Corn Products International Inc.

    1,421    61,274

Fresh Del Monte Produce Inc.

    1,012    26,869

Interstate Bakeries Corp.

    1,852    18,205

Pilgrim’s Pride Corp.

    1,296    36,340

Ruddick Corp.

    1,640    32,078

Weis Markets Inc.

    316    10,077

Winn-Dixie Stores Inc. (2)

    3,424    21,640
         
          238,919

FOREST PRODUCTS & PAPER—0.91%

          

Glatfelter Co. (2)

    1,276    17,009

Longview Fibre Co. (1)

    2,084    26,904

Potlatch Corp.

    1,214    48,669

Rock-Tenn Co. Class A

    1,028    14,567
         
          107,149

GAS—5.34%

          

Atmos Energy Corp.

    2,484    62,522

Energen Corp.

    1,336    63,260

Laclede Group Inc. (The)

    736    19,806

New Jersey Resources Corp.

    1,124    45,691

Nicor Inc. (2)

    1,796    59,466

Northwest Natural Gas Co.

    1,112    32,671

Peoples Energy Corp.

    1,532    59,748

Piedmont Natural Gas Co.

    1,456    60,060

South Jersey Industries Inc.

    560    25,430

Southern Union Co. (1)

    2,220    44,200

Southwest Gas Corp.

    1,412    33,422

UGI Corp.

    2,061    66,756

WGL Holdings Inc.

    1,984    54,441
         
          627,473

HAND & MACHINE TOOLS—0.72%

          

Kennametal Inc.

    1,488    65,472

Regal-Beloit Corp.

    936    19,656
         
          85,128

HEALTH CARE-SERVICES—0.89%

          

Beverly Enterprises Inc. (1)

    4,372    34,451

Kindred Healthcare Inc. (1)

    748    18,139

US Oncology Inc. (1)

    3,520    52,342
         
          104,932

HOLDING COMPANIES - DIVERSIFIED—0.11%

          

Walter Industries Inc.

    916    12,778
         
          12,778

HOME BUILDERS—0.87%

          

Beazer Homes USA Inc.

    564    52,678

M/I Homes Inc.

    420    15,956

WCI Communities Inc. (1)

    1,576    33,931
         
          102,565

HOME FURNISHINGS—0.85%

          

Furniture Brands International Inc.

    2,116    48,626

Kimball International Inc. Class B

    996    13,705

La-Z-Boy Inc.

    2,144    37,048
         
          99,379

HOUSEHOLD PRODUCTS & WARES—1.51%

          

American Greetings Corp. Class A (1)

    2,610    60,865

Blyth Inc.

    1,360    47,355

Harland (John H.) Co.

    1,144    32,387

Tupperware Corp.

    2,124    36,469
         
          177,076

INSURANCE—5.12%

          

Alfa Corp.

    1,516    20,496

AmerUs Group Co.

    1,604    61,754

Argonaut Group Inc. (1)

    1,104    20,711

CNA Surety Corp. (1)

    632    6,453

Commerce Group Inc.

    1,200    58,092

Delphi Financial Group Inc. Class A

    1,112    45,092

FBL Financial Group Inc. Class A

    1,088    28,919

Harleysville Group Inc.

    548    10,357

Horace Mann Educators Corp.

    1,740    29,162

Infinity Property & Casualty Corp.

    836    24,060

LandAmerica Financial Group Inc.

    696    27,492

Max Reinsurance Capital Ltd.

    796    14,264

Odyssey Re Holdings Corp. (2)

    520    12,142

Ohio Casualty Corp. (1)

    2,348    43,908

Phoenix Companies Inc.

    3,664    37,996

Platinum Underwriters Holdings Ltd.

    1,108    30,836

Presidential Life Corp.

    876    15,374

Selective Insurance Group Inc.

    1,143    41,159

Stewart Information Services Corp.

    688    24,390

UICI (1)

    1,344    32,148

Zenith National Insurance Corp. (2)

    404    17,319
         
          602,124

INTERNET—0.17%

          

NetBank Inc.

    1,888    20,277
         
          20,277

INVESTMENT COMPANIES—0.19%

          

MCG Capital Corp.

    1,376    22,360
         
          22,360

IRON & STEEL—1.46%

          

AK Steel Holding Corp. (1)

    4,204    27,873

Allegheny Technologies Inc.

    3,167    63,498

Carpenter Technology Corp.

    832    35,776

Cleveland-Cliffs Inc. (1) (2)

    436    28,575

Schnitzer Steel Industries Inc. Class A (2)

    508    15,712
         
          171,434

LEISURE TIME—0.58%

          

Arctic Cat Inc.

    584    15,844

Callaway Golf Co.

    2,652    29,172

Nautilus Group Inc. (The)

    1,256    23,261
         
          68,277

LODGING—0.87%

          

Aztar Corp. (1)

    1,408    34,172

La Quinta Corp. (1)

    7,020    53,773

Marcus Corp.

    832    14,635
         
          102,580

MACHINERY—1.93%

          

AGCO Corp. (1)

    3,676    76,902

Albany International Corp. Class A

    960    28,723

NACCO Industries Inc.

    220    20,106

Tecumseh Products Co. Class A

    548    22,375

Terex Corp. (1)

    2,027    78,871
         
          226,977

MANUFACTURING—2.11%

          

Acuity Brands Inc.

    1,736    41,404

Barnes Group Inc.

    700    18,165

Federal Signal Corp.

    1,956    33,272

Griffon Corp. (1)

    1,092    22,899

Lancaster Colony Corp.

    1,148    46,241

Smith (A.O.) Corp.

    784    22,516

Tredegar Corp.

    928    15,293

Trinity Industries Inc.

    1,604    48,232
         
          248,022

MEDIA—1.37%

          

Charter Communications Inc. Class A (1) (2)

    10,524    32,519

Journal Register Co. (1)

    1,560    30,264

Primedia Inc. (1)

    4,212    10,109

Readers Digest Association Inc. (The)

    3,516    50,209

Scholastic Corp. (1)

    1,388    38,184
         
          161,285

METAL FABRICATE & HARDWARE—0.74%

          

Commercial Metals Co.

    1,184    41,002

Quanex Corp.

    672    30,576

Valmont Industries Inc.

    680    14,844
         
          86,422

MINING—0.79%

          

Compass Minerals International Inc.

    1,240    25,321

Owens & Minor Inc.

    1,600    41,072

Stillwater Mining Co. (1)

    1,788    26,015
         
          92,408

OFFICE & BUSINESS EQUIPMENT—0.61%

          

IKON Office Solutions Inc.

    6,036    71,647
         
          71,647

OIL & GAS—3.72%

          

Berry Petroleum Co. Class A

    740    22,392

Cabot Oil & Gas Corp.

    1,334    58,656

Forest Oil Corp. (1)

    2,370    67,047

Harvest Natural Resources Inc. (1)

    1,444    19,898

Holly Corp.

    496    19,547

Houston Exploration Co. (1)

    844    45,576

Plains Exploration & Production Co. (1)

    2,564    53,459

St. Mary Land & Exploration Co.

    1,040    35,682

Tesoro Petroleum Corp. (1)

    2,672    77,488

Vintage Petroleum Inc.

    2,200    37,620
         
          437,365

PACKAGING & CONTAINERS—0.91%

          

Crown Holdings Inc. (1)

    6,732    68,262

Greif Inc. Class A

    440    16,350

Silgan Holdings Inc.

    456    21,938
         
          106,550

PIPELINES—0.41%

          

Dynegy Inc. Class A (1) (2)

    11,500    48,300
         
          48,300

REAL ESTATE—0.38%

          

LNR Property Corp. (2)

    823    44,450
         
          44,450

REAL ESTATE INVESTMENT TRUSTS—17.59%

          

Alexandria Real Estate Equities Inc.

    799    48,012

AMLI Residential Properties Trust

    1,032    29,794

Anthracite Capital Inc.

    1,936    21,238

Bedford Property Investors Inc.

    624    17,466

Brandywine Realty Trust

    1,850    50,505

BRE Properties Inc. Class A

    1,936    67,082

Camden Property Trust

    1,452    65,340

Capital Automotive

    1,320    38,267

Colonial Properties Trust

    940    35,720

Commercial Net Lease Realty Inc.

    1,976    33,592

Cornerstone Realty Income Trust Inc.

    2,152    18,873

Crescent Real Estate Equities Co.

    3,788    59,510

EastGroup Properties Inc.

    852    27,630

FelCor Lodging Trust Inc. (1)

    1,908    21,751

First Industrial Realty Trust Inc. (2)

    1,680    61,555

Gables Residential Trust

    1,192    39,396

Getty Realty Corp.

    788    18,408

Glenborough Realty Trust Inc.

    1,300    23,764

Glimcher Realty Trust

    1,376    29,804

Health Care REIT Inc. (2)

    2,084    67,251

Healthcare Realty Trust Inc.

    1,756    63,427

Highwoods Properties Inc.

    2,188    50,762

Home Properties Inc.

    1,256    47,226

HRPT Properties Trust

    7,228    72,786

Impac Mortgage Holdings Inc.

    2,616    60,037

Keystone Property Trust

    1,260    29,938

Kilroy Realty Corp.

    1,156    40,922

Lexington Corporate Properties Trust

    1,964    38,416

MFA Mortgage Investments Inc.

    3,100    25,141

Mid-America Apartment Communities Inc.

    832    29,827

National Health Investors Inc.

    1,016    27,869

Nationwide Health Properties Inc.

    2,695    51,475

Newcastle Investment Corp.

    1,232    34,853

Novastar Financial Inc. (2)

    1,020    40,912

Parkway Properties Inc.

    448    19,667

Pennsylvania Real Estate Investment Trust

    1,460    50,910

Prentiss Properties Trust

    1,576    53,994

PS Business Parks Inc.

    668    26,854

RAIT Investment Trust

    1,028    24,919

Realty Income Corp.

    1,616    65,480

Reckson Associates Realty Corp.

    2,724    75,482

Redwood Trust Inc.

    863    48,993

Senior Housing Properties Trust

    2,144    35,805

SL Green Realty Corp.

    1,576    77,382

Sovran Self Storage Inc.

    608    23,584

Summit Properties Inc.

    1,284    33,127

Sun Communities Inc.

    772    29,035

Tanger Factory Outlet Centers Inc.

    556    22,045

Taubman Centers Inc.

    1,900    43,890

Washington Real Estate Investment Trust

    1,704    47,610
         
          2,067,326

RETAIL—4.67%

          

Asbury Automotive Group Inc. (1)

    648    8,832

Bob Evans Farms Inc.

    1,436    38,226

Brown Shoe Co. Inc.

    700    22,561

Burlington Coat Factory Warehouse Corp.

    808    14,657

Cato Corp. Class A

    820    17,113

Charming Shoppes Inc. (1)

    4,688    34,410

Dillard’s Inc. Class A

    2,808    63,994

Genesco Inc. (1)

    888    19,056

Group 1 Automotive Inc. (1)

    820    24,387

Haverty Furniture Companies Inc.

    744    13,831

Hollywood Entertainment Corp. (1)

    2,300    29,693

Jack in the Box Inc. (1)

    1,488    47,467

Jo-Ann Stores Inc. (1)

    856    22,701

Lone Star Steakhouse & Saloon Inc.

    768    18,616

Longs Drug Stores Corp.

    1,216    25,536

Payless ShoeSource Inc. (1) (2)

    2,772    35,870

Ryan’s Restaurant Group Inc. (1)

    1,716    24,865

Sonic Automotive Inc.

    1,184    26,462

Stage Stores Inc. (1)

    744    26,382

Triarc Companies Inc.

    468    4,572

Triarc Companies Inc. Class B

    776    7,574

United Auto Group Inc.

    816    22,391
         
          549,196

SAVINGS & LOANS—2.68%

          

Anchor BanCorp Wisconsin Inc.

    876    22,285

Commercial Federal Corp.

    1,660    43,708

Dime Community Bancshares

    1,376    22,869

Downey Financial Corp.

    848    45,580

First Federal Capital Corp.

    856    24,225

FirstFed Financial Corp. (1)

    656    29,723

Hudson River Bancorp Inc.

    1,124    19,423

MAF Bancorp Inc.

    1,252    50,268

PFF Bancorp Inc.

    544    19,976

Waypoint Financial Corp.

    1,356    37,222
         
          315,279

SEMICONDUCTORS—0.46%

          

Axcelis Technologies Inc. (1)

    4,052    37,805

Kulicke & Soffa Industries Inc. (1)

    2,072    16,182
         
          53,987

TELECOMMUNICATIONS—0.53%

          

Cincinnati Bell Inc. (1)

    9,988    40,352

Corvis Corp. (1) (2)

    14,964    16,760

Primus Telecommunications Group Inc. (1)

    3,112    5,041
         
          62,153

TEXTILES—0.09%

          

UniFirst Corp.

    368    10,937
         
          10,937

TRANSPORTATION—2.90%

          

Alexander & Baldwin Inc.

    1,562    51,359

Arkansas Best Corp.

    916    32,033

General Maritime Corp. (1)

    1,420    42,117

Offshore Logistics Inc. (1)

    872    25,244

Overnite Corp.

    1,140    34,075

Overseas Shipholding Group Inc. (2)

    944    42,395

USF Corp.

    1,145    40,648

Yellow Roadway Corp. (1)

    1,686    73,358
         
          341,229

TRUCKING & LEASING—0.35%

          

GATX Corp.

    1,592    40,564
         
          40,564

WATER—0.15%

          

California Water Service Group

    640    17,466
         
          17,466

TOTAL COMMON STOCKS
(Cost: $12,007,166)

         11,740,719
         

Security

    Shares or Principal
    Value

SHORT-TERM INVESTMENTS—5.70%

          

MONEY MARKET FUNDS—1.44%

          

Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares (3) (5)

    106,162    106,162

Barclays Global Investors Funds Prime Money Market Fund, Institutional Shares (3) (5)

    56,271    56,271

BlackRock Temp Cash Money Market Fund (3)

    2,582    2,582

Short-Term Investment Co.—Prime Money Market Portfolio (3)

    4,401    4,401
         
          169,416

FLOATING RATE NOTES—1.37%

          

Beta Finance Inc.

          

1.30%, 05/04/05 (3) (4)

    3,069    3,069

1.31%, 10/12/04 (3) (4)

    2,558    2,558

1.34%, 09/15/04 (3) (4)

    5,116    5,116

1.42%, 03/15/05 (3) (4)

    2,558    2,559

1.48%, 08/23/04 (3) (4)

    2,558    2,558

Canadian Imperial Bank of Commerce

          

1.24%, 10/07/04 (3)

    3,837    3,837

1.38%, 11/22/04 (3)

    1,279    1,279

1.40%, 10/29/04 (3)

    5,116    5,116

CC USA Inc.

          

1.30%, 05/04/05 (3) (4)

    5,116    5,115

1.61%, 07/29/05 (3) (4)

    5,116    5,114

Depfa Bank PLC

          

1.27%, 06/15/05 (3)

    5,116    5,116

Dorada Finance Inc.

          

1.61%, 07/29/05 (3) (4)

    4,246    4,245

Five Finance Inc.

          

1.42%, 04/29/05 (3) (4)

    4,092    4,092

HBOS Treasury Services PLC

          

1.24%, 04/01/05 (3)

    3,274    3,274

1.58%, 04/22/05 (3)

    5,116    5,116

K2 USA LLC

          

1.34%, 08/16/04 (3) (4)

    1,279    1,279

1.41%, 09/27/04 (3) (4)

    5,525    5,525

1.49%, 06/10/05 (3) (4)

    5,116    5,115

1.61%, 07/25/05 (3) (4)

    2,558    2,557

Links Finance LLC

          

1.33%, 04/15/05 (3)

    5,116    5,115

1.68%, 04/25/05 (3)

    5,116    5,118

Nationwide Building Society

          

1.59%, 07/28/05 (3) (4)

    5,116    5,116

1.63%, 12/09/04 (3)

    4,246    4,221

Northern Rock PLC

          

1.56%, 01/13/05 (3) (4)

    4,860    4,860

Permanent Financing PLC

          

1.31%, 03/10/05 (3)

    5,116    5,116

1.32%, 12/10/04 (3)

    2,558    2,558

1.34%, 06/10/05 (3)

    2,302    2,303

Sigma Finance Inc.

          

1.35%, 11/15/04 (3)

    5,116    5,115

1.52%, 10/07/04 (3)

    5,116    5,115

Tango Finance Corp.

          

1.20%, 05/17/05 (3) (4)

    4,246    4,246

1.23%, 02/25/05 (3) (4)

    2,865    2,864

1.32%, 04/07/05 (3) (4)

    1,877    1,877

1.34%, 01/18/05 (3) (4)

    2,251    2,251

1.42%, 07/25/05 (3) (4)

    5,116    5,115

WhistleJacket Capital LLC

          

1.26%, 10/20/04 (3) (4)

    1,267    1,264

1.34%, 09/15/04 (3) (4)

    2,558    2,558

1.38%, 07/15/05 (3) (4)

    3,837    3,836

1.48%, 06/15/05 (3) (4)

    2,558    2,557

White Pine Finance LLC

          

1.21%, 05/20/05 (3) (4)

    2,302    2,302

1.33%, 04/15/05 (3) (4)

    3,837    3,836

1.33%, 07/05/05 (3) (4)

    2,558    2,557

1.34%, 11/15/04 (3) (4)

    3,069    3,069

1.35%, 06/15/05 (3) (4)

    2,097    2,097

1.40%, 08/26/04 (3) (4)

    2,558    2,558

1.55%, 07/11/05 (3) (4)

    1,279    1,279
         
          161,543

COMMERCIAL PAPER—1.04%

          

Alpine Securitization Corp.

          

1.31%, 08/12/04 (3)

    2,558    2,557

Amsterdam Funding Corp.

          

1.30%, 08/13/04 (3)

    3,837    3,835

1.33%, 08/16/04 (3)

    5,116    5,113

1.35%, 08/20/04 (3)

    1,535    1,534

1.37%, 08/24/04 (3)

    1,790    1,789

Barton Capital Corp.

          

1.29%, 08/10/04 (3)

    2,558    2,557

1.30%, 08/13/04 (3)

    2,103    2,102

1.35%, 08/18/04 (3)

    1,279    1,278

Blue Ridge Asset Funding Corp.

          

1.29%, 08/06/04 (3)

    2,558    2,557

Corporate Asset Funding

          

1.42%, 09/03/04 (3)

    1,535    1,533

CRC Funding LLC

          

1.42%, 09/03/04 (3)

    2,558    2,555

Edison Asset Securitization

          

1.07%, 09/21/04 (3)

    2,558    2,554

1.45%, 11/09/04 (3)

    5,116    5,095

1.59%, 12/02/04 (3)

    5,116    5,089

Falcon Asset Securitization Corp.

          

1.29%, 08/09/04 (3)

    4,860    4,859

1.30%, 08/03/04 (3)

    2,558    2,558

1.34%, 08/19/04 (3)

    2,558    2,556

1.37%, 08/24/04 (3)

    2,046    2,045

Ford Credit Auto Receivables

          

1.85%, 01/14/05 (3)

    2,558    2,536

GIRO Funding US Corp.

          

1.55%, 10/15/04 (3)

    3,355    3,344

Grampian Funding LLC

          

1.26%, 10/22/04 (3)

    5,116    5,101

1.44%, 10/27/04 (3)

    5,116    5,098

1.59%, 11/30/04 (3)

    2,558    2,544

Jupiter Securitization Corp.

          

1.30%, 08/12/04 (3)

    2,558    2,557

1.37%, 08/20/04 (3)

    3,422    3,420

Park Avenue Receivables Corp.

          

1.35%, 08/19/04 (3)

    2,558    2,556

Preferred Receivables Funding Corp.

          

1.29%, 08/05/04 (3)

    2,363    2,363

1.36%, 08/23/04 (3)

    2,558    2,556

Receivables Capital Corp.

          

1.30%, 08/12/04 (3)

    1,790    1,790

1.34%, 08/16/04 (3)

    306    306

1.35%, 08/18/04 (3)

    2,302    2,301

1.35%, 08/19/04 (3)

    870    869

Scaldis Capital LLC

          

1.34%, 08/16/04 (3)

    5,116    5,113

1.37%, 08/20/04 (3)

    767    767

1.40%, 08/25/04 (3)

    6,394    6,389

Sydney Capital Corp.

          

1.25%, 10/22/04 (3)

    1,702    1,698

1.31%, 08/12/04 (3)

    2,046    2,045

Thames Asset Global Securitization No. 1 Inc.

          

1.30%, 08/12/04 (3)

    2,700    2,699

1.34%, 08/16/04 (3)

    1,432    1,432

1.36%, 08/20/04 (3)

    3,837    3,834

1.37%, 08/19/04 (3)

    1,429    1,429

1.37%, 08/20/04 (3)

    665    665

Windmill Funding Corp.

          

1.29%, 08/06/04 (3)

    6,394    6,394
         
          121,972

TIME DEPOSITS—0.91%

          

Abbey National Treasury Services PLC

          

1.25%, 01/06/05 (3)

    5,116    5,116

1.33%, 02/10/05 (3)

    2,558    2,558

1.39%, 02/02/05 (3)

    2,558    2,558

1.39%, 04/08/05 (3)

    3,581    3,581

1.40%, 10/25/04 (3)

    5,098    5,098

Bank of New York

          

1.39%, 11/01/04 (3)

    5,116    5,115

1.60%, 12/03/04 (3)

    1,279    1,279

Bank of Nova Scotia

          

1.13%, 10/06/04 (3)

    5,116    5,116

1.24%, 10/07/04 (3)

    3,837    3,837

1.42%, 10/29/04 (3)

    3,837    3,837

National City Bank (Cleveland, Ohio)

          

1.25%, 01/06/05 (3)

    5,116    5,116

1.35%, 06/10/05 (3)

    2,558    2,558

1.36%, 06/23/05 (3)

    5,116    5,115

Norddeutsche Landesbank

          

1.59%, 07/27/05 (3)

    5,116    5,114

Nordea Bank PLC

          

2.11%, 06/07/05 (3)

    5,116    5,115

Prudential Funding LLC

              

1.60%, 12/01/04 (3)

    2,558      2,544  

Toronto-Dominion Bank

              

1.22%, 03/23/05 (3)

    8,952      8,951  

1.34%, 02/10/05 (3)

    2,046      2,046  

1.41%, 11/01/04 (3)

    3,837      3,837  

1.77%, 05/10/05 (3)

    2,558      2,558  

1.90%, 05/11/05 (3)

    2,558      2,558  

UBS Finance (Delaware)

              

1.10%, 09/08/04 (3)

    5,116      5,110  

1.11%, 12/17/04 (3)

    7,673      7,641  

1.13%, 08/09/04 (3)

    5,116      5,114  

1.14%, 09/29/04 (3)

    5,116      5,106  
         
            106,578  

REPURCHASE AGREEMENTS—0.55%

              

Banc of America Securities LLC

              

1.34%, 08/02/04 (3) (6)

    13,300      13,300  

Bank of America, N.A.

              

1.37%, 08/02/04 (3) (6)

    25,578      25,578  

Goldman Sachs & Co.

              

1.37%, 08/02/04 (3) (6)

    25,578      25,578  
         
            64,456  

U.S. GOVERNMENT AGENCY NOTES—0.23%

              

Federal Home Loan Mortgage Corp.

              

1.28%, 08/19/04 (3)

    2,046      2,045  

1.63%, 04/15/05 (3)

    3,581      3,589  

1.80%, 01/18/05 (3)

    2,379      2,359  

1.80%, 01/19/05 (3)

    2,558      2,536  

2.06%, 05/31/05 (3)

    2,550      2,506  

Federal National Mortgage Association

              

1.28%, 08/20/04 (3)

    6,650      6,647  

2.33%, 07/22/05 (3)

    7,673      7,498  
         
            27,180  

MEDIUM-TERM NOTES—0.16%

              

CC USA Inc.

              

1.29%, 04/15/05 (3) (4)

    5,116      5,115  

1.51%, 02/15/05 (3) (4)

    3,325      3,328  

Dorada Finance Inc.

              

1.24%, 08/09/04 (3) (4)

    1,279      1,279  

1.48%, 01/18/05 (3) (4)

    3,837      3,837  

K2 USA LLC

              

1.46%, 01/12/05 (3) (4)

    2,558      2,558  

Sigma Finance Inc.

              

1.24%, 08/06/04 (3)

    1,279      1,279  

WhistleJacket Capital LLC

              

1.32%, 02/04/05 (3) (4)

    1,279      1,279  
         
            18,675  

TOTAL SHORT-TERM INVESTMENTS
(Cost: $669,820)

           669,820  
         

TOTAL INVESTMENTS IN SECURITIES — 105.62%
(Cost: $12,676,986) (7)

           12,410,539  

Other Assets, Less Liabilities — (5.62%)

           (660,151 )
         

NET ASSETS — 100.00%

         $ 11,750,388  
         
(1) Non-income earning security.
(2) All or a portion of this security represents a security on loan.

(3) All or a portion of this security represents an investment of securities lending collateral.
(4) Security exempt from registration pursuant to Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.
(5) Issuer is an affiliate of the Fund’s investment adviser.
(6) Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 3.61% to 7.00% and maturity dates ranging from 7/1/13 to 7/1/34.
(7) The cost of investments for federal income tax purposes was $12,677,015. Net unrealized depreciation aggregated $266,476, of which $202,015 represented gross unrealized appreciation on securities and $468,491 represented gross unrealized depreciation on securities.

Item 2. 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) There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the Registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

 

Item 3. Exhibits.

 

(a) Section 302 Certifications are attached.

SIGNATURES

 

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:   September 17, 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:   September 17, 2004
By:  

/s/ Michael A. Latham

    Michael A. Latham, Principal Financial Officer
Date:   September 17, 2004