Form N-CSR

Cumulative Total Returns

Inception to 4/30/05

MARKET

INDEX

N-CSR 1 dncsr.htm FORM N-CSR Form N-CSR

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-09729

iShares Trust

(Exact name of registrant as specified in charter)

c/o: Investors Bank & Trust Company

200 Clarendon Street; Boston, MA 02116



(Address of principal executive offices) (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: April 30, 2005

Item 1.

Reports to Stockholders

LOGO

iShares^®

Dear iShares Shareholder:

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Table of Contents


Management’s Discussion of Fund Performance		1
Shareholder Expenses		21
Schedules of Investments		23
iShares Dow Jones U.S. Basic Materials Sector Index Fund		23
iShares Dow Jones U.S. Consumer Goods Sector Index Fund		28
iShares Dow Jones U.S. Consumer Services Sector Index Fund		35
iShares Dow Jones U.S. Financial Sector Index Fund		43
iShares Dow Jones U.S. Industrial Sector Index Fund		51
iShares Dow Jones U.S. Financial Services Index Fund		59
iShares Dow Jones U.S. Real Estate Index Fund		65
iShares KLD Select Social^SM Index Fund		70
iShares Cohen & Steers Realty Majors Index Fund		76
Financial Statements		81
Financial Highlights		88
Notes to the Financial Statements		97
Report of Independent Registered Public Accounting Firm		105
Tax Information (Unaudited)		106
Supplemental Information (Unaudited)		107
Trustee Information (Unaudited)		110
iShares Family of Funds		114

Management’s Discussion of Fund Performance

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

Performance as of 4/30/05


Average Annual Total Returns											Cumulative Total Returns
*Year Ended 4/30/05*					*Inception to 4/30/05*						*Inception to 4/30/05*
*NAV*	*MARKET*		*INDEX*		*NAV*		*MARKET*		*INDEX*		*NAV*		*MARKET*		*INDEX*
13.41%	13.31	%	14.14	%	7.48	%	7.46	%	8.07	%	42.23	%	42.14	%	46.07	%

Total returns for the periods since inception are calculated from the inception date of the Fund (6/12/00). “Average annual total returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative total returns” represent the total change in value of an investment over the periods indicated.

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until several days after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (6/19/00), the NAV of the Fund is used as a proxy for the secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

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

GROWTH OF $10,000 INVESTMENT

SINCE INCEPTION AT NET ASSET VALUE

LOGO

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


MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE		1

PORTFOLIO ALLOCATION

As of 4/30/05


*Industry*	*% of* *Net Assets*
Chemicals	54.86	%
Mining	16.18
Forest Products & Paper	12.26
Iron & Steel	5.22
Agriculture	4.38
Coal	4.19
Household Products & Wares	1.87
Metal Fabricate & Hardware	0.74
Biotechnology	0.13
Manufacturing	0.12
Short-Term and Other Net Assets	0.05

TOTAL	100.00	%

TOP TEN FUND HOLDINGS

As of 4/30/05


*Security*	*% of* *Net Assets*
Du Pont (E.I.) de Nemours and Co.	13.09	%
Dow Chemical Co. (The)	12.25
Alcoa Inc.	7.07
International Paper Co.	4.66
Weyerhaeuser Co.	4.60
Monsanto Co.	4.38
Newmont Mining Corp.	4.31
Praxair Inc.	4.26
Air Products & Chemicals Inc.	3.50
PPG Industries Inc.	3.25

TOTAL	61.37	%

The iShares Dow Jones U.S. Basic Materials Sector Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Dow Jones U.S. Basic Materials Index (the “Index”). The Index measures the performance of the basic materials sector of the U.S. equity market, and includes companies in the following sectors: chemicals, forestry and paper, industrial materials (such as steel, metals and coal) and mining. The Fund invests in a representative sample of securities in the Index, which have a similar investment profile as the Index. For the one-year period ended April 30, 2005 (the “reporting period”), the Fund returned 13.41%, while the Index returned 14.14%.

Although broad equity markets, as measured by the Dow Jones U.S. Total Market Index, experienced some volatility during the reporting period, they generally delivered gains. On the economic front, news was generally positive. Gross domestic product data showed signs of moderate economic growth for each of the four quarters in the reporting period, although growth levels tended to fall below many economists’ forecasts. Employment figures also strengthened during the course of the reporting period. Oil prices soared during the reporting period, topping $57 per barrel in early April, leading to concerns about inflation. The Federal Reserve Board raised short-term interest rates seven times during the reporting period, overall from 1.00% to 2.75%. In the final months of the reporting period, the concerns about high oil prices and the prospect of further increases in interest rates appeared to dampen investor enthusiasm, and markets generally retraced a portion of the gains made earlier in the reporting period.

Basic materials stocks generally performed well during the reporting period, benefiting from improving economic conditions. Because economic recovery tends to result in higher demand for commodities products, such as forest products and metals, companies related to the production or delivery of these products generally performed well. On the other hand, those companies that depend on oil and natural gas were hindered by the rise in energy prices during the reporting period.

Among the Fund’s ten largest holdings as of April 30, 2005, performance was mostly positive for the reporting period. Agricultural products provider Monsanto Co. was the strongest performer for the reporting period, followed by chemical company Praxair Inc. Forest products company Weyerhaeuser Co. also performed well as did chemical companies The Dow Chemical Co. and Air Products & Chemicals Inc. International Paper Co. and Alcoa Inc. each posted a loss for the reporting period.


2		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance

iSHARES^® DOW JONES U.S. CONSUMER GOODS SECTOR INDEX FUND

Performance as of 4/30/05


Average Annual Total Returns											Cumulative Total Returns
*Year Ended 4/30/05*					*Inception to 4/30/05*						*Inception to 4/30/05*
*NAV*	*MARKET*		*INDEX*		*NAV*		*MARKET*		*INDEX*		*NAV*		*MARKET*		*INDEX*
(0.09)%	(0.15	)%	0.48	%	6.23	%	6.23	%	6.95	%	34.32	%	34.32	%	38.78	%

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until several days after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (6/16/00), the NAV of the Fund is used as a proxy for the secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

GROWTH OF $10,000 INVESTMENT

SINCE INCEPTION AT NET ASSET VALUE

LOGO


MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE		3

PORTFOLIO ALLOCATION

As of 4/30/05


*Industry*	% of Net Assets
Cosmetics & Personal Care	23.39	%
Beverages	21.84
Agriculture	13.69
Food	13.17
Home Builders	5.04
Apparel	4.15
Auto Manufacturers	2.47
Auto Parts & Equipment	2.22
Software	1.85
Household Products & Wares	1.77
Leisure Time	1.55
Home Furnishings	1.55
Manufacturing	1.17
Toys, Games & Hobbies	1.10
Hand & Machine Tools	1.04
Distribution & Wholesale	0.80
Housewares	0.52
Office Furnishings	0.47
Electrical Components & Equipment	0.46
Textiles	0.43
Electronics	0.42
Retail	0.18
Commercial Services	0.15
Machinery	0.15
Pharmaceuticals	0.11
Biotechnology	0.10
Health Care - Products	0.03
Computers	0.03
Short-Term and Other Net Assets	0.15

TOTAL	100.00	%

TOP TEN FUND HOLDINGS

As of 4/30/05


*Security*	*% of* *Net Assets*
Procter & Gamble Co.	11.90	%
Altria Group Inc.	11.62
Coca-Cola Co. (The)	8.42
PepsiCo Inc.	8.17
Gillette Co. (The)	4.10
Anheuser-Busch Companies Inc.	3.27
Kimberly-Clark Corp.	2.65
Colgate-Palmolive Co.	2.30
Avon Products Inc.	1.65
General Mills Inc.	1.53

TOTAL	55.61	%

The iShares Dow Jones U.S. Consumer Goods Sector Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Dow Jones U.S. Consumer Goods Index (the “Index”)*. The Index measures the performance of the consumer goods sector of the U.S. equity market and includes companies in the following sectors: automobiles and parts, home construction, beverages, food producers, household goods, leisure goods, personal goods and tobacco. The Fund invests in a representative sample of securities in the Index, which have a similar investment profile as the Index. For the one-year period ended April 30, 2005 (the “reporting period”), the Fund declined 0.09%, while the Index returned 0.48%.

Although broad equity markets, as measured by the Dow Jones U.S. Total Market Index (the “Total Market Index”), experienced some volatility during the reporting period, they generally delivered gains. On the economic front, news was generally positive. Gross domestic product data


4		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

showed signs of moderate economic growth for each of the four quarters in the reporting period, although growth levels tended to fall below many economists’ forecasts. Employment figures also strengthened during the course of the reporting period. Oil prices soared during the reporting period, topping $57 per barrel in early April, leading to concerns about inflation. The Federal Reserve Board raised short-term interest rates seven times during the reporting period, overall from 1.00% to 2.75%. In the final months of the reporting period, the concerns about high oil prices and the prospect of further increases in interest rates appeared to dampen investor enthusiasm, and markets generally retraced a portion of the gains made earlier in the reporting period.

The consumer goods sector lagged the Total Market Index, delivering slight gains for the reporting period. Underlying the relatively flat performance of the overall Index, however, was a wide range of performance returns for individual companies. Even some companies in similar areas posted varying returns for the reporting period.

Among the Fund’s ten largest holdings as of April 30, 2005, the strongest performer for the reporting period was consumer products company The Gillette Co. Tobacco company Altria Group Inc. also performed well. The largest Fund holding as of April 30, 2005, Procter & Gamble Co., posted a slight gain for the reporting period, as did beverage company PepsiCo Inc. Beverage giant The Coca-Cola Co. suffered the sharpest decline for the reporting period among the Fund’s ten largest holdings, followed by consumer products company Colgate Palmolive Co. and Anheuser-Busch Companies Inc.

*	Prior to December 20, 2004, the Fund was known as the iShares Dow Jones U.S. Consumer Non-Cyclical Sector Index Fund and the Index was known as the Dow Jones U.S. Consumer Non-Cyclical Sector Index.


MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE		5

Management’s Discussion of Fund Performance

iSHARES^® DOW JONES U.S. CONSUMER SERVICES SECTOR INDEX FUND

Performance as of 4/30/05


Average Annual Total Returns											Cumulative Total Returns
*Year Ended 4/30/05*					*Inception to 4/30/05*						*Inception to 4/30/05*
*NAV*	*MARKET*		*INDEX*		*NAV*		*MARKET*		*INDEX*		*NAV*		*MARKET*		*INDEX*
0.79%	0.46	%	1.28	%	(1.09	)%	(1.12	)%	(0.57	)%	(5.21	)%	(5.33	)%	(2.73	)%

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until several days after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (6/20/00), the NAV of the Fund is used as a proxy for the secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

GROWTH OF $10,000 INVESTMENT

SINCE INCEPTION AT NET ASSET VALUE

LOGO


6		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

PORTFOLIO ALLOCATION

As of 4/30/05


*Industry*	*% of* *Net Assets*
Retail	45.24	%
Media	28.78
Commercial Services	5.03
Food	3.71
Lodging	3.53
Internet	3.38
Pharmaceuticals	2.50
Advertising	2.02
Leisure Time	1.74
Entertainment	1.38
Airlines	1.11
Software	0.64
Distribution & Wholesale	0.43
Telecommunications	0.28
Household Products & Wares	0.09
Manufacturing	0.07
Computers	0.06
Short-Term and Other Net Assets	0.01

TOTAL	100.00	%

TOP TEN FUND HOLDINGS

As of 4/30/05


*Security*	*% of* *Net Assets*
Wal-Mart Stores Inc.	7.55	%
Home Depot Inc.	4.76
Time Warner Inc.	4.54
Walt Disney Co. (The)	3.31
Viacom Inc. Class B	3.11
Walgreen Co.	2.70
Comcast Corp. Class A	2.48
Target Corp.	2.35
Lowe’s Companies Inc.	2.27
McDonald’s Corp.	2.26

TOTAL	35.33	%

The iShares Dow Jones U.S. Consumer Services Sector Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Dow Jones U.S. Consumer Services Index (the “Index”)*. The Index measures the performance of the consumer services sector of the U.S. equity market, and includes companies in the following sectors: food and drug retailers, general retailers, airlines, gambling, media and travel and leisure. The Fund invests in a representative sample of securities in the Index, which have a similar investment profile as the Index. For the one-year period ended April 30, 2005 (the “reporting period”), the Fund returned 0.79%, while the Index returned 1.28%.

Consumer services stocks delivered mixed results for the reporting period. Home improvement stores, which had benefited in previous reporting periods from low interest rates and a corresponding real estate boom, generally posted more modest gains for the reporting period. The discount retailers tended to post mixed results, as did those in the entertainment areas.

Among the Fund’s ten largest holdings as of April 30, 2005, drugstore chain Walgreen Co. logged the strongest gains for the reporting period. Entertainment company The Walt Disney Co. also performed well. Discount retailer Target Corp. and entertainment-related company Comcast Corp.’s Class A shares both contributed positively to the Fund’s performance for the reporting period, while home improvement companies Home Depot Inc. and Lowe’s Companies Inc. both logged slight gains. The Fund’s largest holding as of April 30, 2005, discount retail giant Wal-Mart Stores Inc., suffered the largest decline among the Fund’s ten largest holdings.

*	Prior to December 20, 2004, the Fund was formerly known as the iShares Dow Jones U.S. Consumer Cyclical Sector Index Fund and the Index was known as the Dow Jones U.S. Consumer Cyclical Sector Index.


MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE		7

Management’s Discussion of Fund Performance

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

Performance as of 4/30/05


Average Annual Total Returns											Cumulative Total Returns
*Year Ended 4/30/05*					*Inception to 4/30/05*						*Inception to 4/30/05*
*NAV*	*MARKET*		*INDEX*		*NAV*		*MARKET*		*INDEX*		*NAV*		*MARKET*		*INDEX*
5.89%	5.85	%	6.49	%	6.90	%	6.89	%	7.55	%	39.04	%	39.01	%	43.24	%

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

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until several days after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (5/31/00), the NAV of the Fund is used as a proxy for the secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

GROWTH OF $10,000 INVESTMENT

SINCE INCEPTION AT NET ASSET VALUE

LOGO


8		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

PORTFOLIO ALLOCATION

As of 4/30/05


*Industry*	*% of* *Net Assets*
Diversified Financial Services	34.33	%
Banks	31.21
Insurance	20.26
Real Estate Investment Trusts	9.33
Savings & Loans	3.68
Commercial Services	0.65
Real Estate	0.19
Software	0.09
Lodging	0.06
Internet	0.01
Short-Term and Other Net Assets	0.19

TOTAL	100.00	%

TOP TEN FUND HOLDINGS

As of 4/30/05


*Security*	*% of* *Net Assets*
Citigroup Inc.	9.56	%
Bank of America Corp.	7.14
JP Morgan Chase & Co.	4.96
American International Group Inc.	4.57
Wells Fargo & Co.	3.98
Wachovia Corp.	3.19
American Express Co.	2.30
Federal National Mortgage Association	2.05
Morgan Stanley	2.05
U.S. Bancorp	2.04

TOTAL	41.84	%

The iShares Dow Jones U.S. Financial Sector Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Dow Jones U.S. Financials Index (the “Index”). The Index measures the performance of the financial sector of the U.S. equity market and includes companies in the following sectors: asset managers, banks, non-life insurance, life insurance, real estate, real estate investment trusts, consumer finance, investment services, mortgage finance and general finance. The Fund invests in a representative sample of securities in the Index, which have a similar investment profile as the Index. For the one-year period ended April 30, 2005 (the “reporting period”), the Fund returned 5.89%, while the Index returned 6.49%.

Financial companies generally performed well as economic conditions continued to show signs of improvement during the reporting period. Consumer banks responded positively to the signs of economic recovery, and high levels of refinance activity continued to be a benefit to lenders. Performance among investment banks was mixed for the reporting period, as some appeared to struggle with market volatility and shifting levels of investor interest.

Among the Fund’s ten largest holdings as of April 30, 2005, performance was mixed for the reporting period. Bank of America Corp. and Wachovia Corp. both posted gains for the reporting period. U.S. Bancorp also performed well, as did American Express Co. and Wells Fargo & Co. Insurance company American International Group Inc. suffered the steepest declines among the Fund’s ten largest holdings, followed by the Federal National Mortgage Association (Fannie Mae). Investment bank JP Morgan Chase & Co. also posted a decline for the reporting period.


MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE		9

Management’s Discussion of Fund Performance

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

Performance as of 4/30/05


Average Annual Total Returns											Cumulative Total Returns
*Year Ended 4/30/05*					*Inception to 4/30/05*						*Inception to 4/30/05*
*NAV*	*MARKET*		*INDEX*		*NAV*		*MARKET*		*INDEX*		*NAV*		*MARKET*		*INDEX*
10.90%	10.75	%	11.73	%	(0.95	)%	(0.98	)%	(1.17	)%	(4.56	)%	(4.70	)%	(5.57	)%

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until several days after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (6/20/00), the NAV of the Fund is used as a proxy for the secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

GROWTH OF $10,000 INVESTMENT

SINCE INCEPTION AT NET ASSET VALUE

LOGO


10		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

PORTFOLIO ALLOCATION

As of 4/30/05


*Industry*	*% of* *Net Assets*
Manufacturing	41.63	%
Aerospace & Defense	13.01
Transportation	10.03
Software	5.22
Electronics	4.94
Machinery	4.72
Commercial Services	4.12
Building Materials	2.59
Electrical Components & Equipment	2.42
Environmental Control	1.85
Packaging & Containers	1.59
Auto Manufacturers	1.10
Forest Products & Paper	0.91
Household Products & Wares	0.87
Engineering & Construction	0.66
Computers	0.66
Metal Fabricate & Hardware	0.63
Internet	0.53
Distribution & Wholesale	0.41
Chemicals	0.35
Textiles	0.34
Leisure Time	0.26
Telecommunications	0.22
Mining	0.22
Electric	0.19
Hand & Machine Tools	0.15
Housewares	0.13
Trucking & Leasing	0.09
Retail	0.08
Semiconductors	0.02
Energy - Alternate Sources	0.02
Health Care - Products	0.01
Short-Term and Other Net Assets	0.03

TOTAL	100.00	%

TOP TEN FUND HOLDINGS

As of 4/30/05


*Security*	*% of* *Net Assets*
General Electric Co.	24.81	%
Tyco International Ltd.	4.08
3M Co.	3.54
United Technologies Corp.	3.11
Boeing Co. (The)	2.87
United Parcel Service Inc. Class B	2.66
First Data Corp.	2.12
Caterpillar Inc.	1.95
Honeywell International Inc.	1.80
Emerson Electric Co.	1.71

TOTAL	48.65	%

The iShares Dow Jones U.S. Industrial Sector Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Dow Jones U.S. Industrials Index (the “Index”). The Index measures the performance of the industrials sector of the U.S. equity market and includes companies in the following sectors: construction and materials, aerospace and defense, general industrials, electronic and electrical equipment, industrial engineering, and industrial transportation and support services. The Fund invests in a representative sample of securities in the Index, which have a similar investment profile as the Index. For the one-year period ended April 30, 2005 (the “reporting period”), the Fund returned 10.90%, while the Index returned 11.73%.


MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE		11

Industrial stocks tend to perform in tandem with economic cycles, as economic recovery generally translates into increased demand for manufacturing, construction, and transportation, as well as related commodities and machinery. During the reporting period, the economic climate strengthened, helping to lift stock prices in the industrial sector overall, and in particular benefiting some aerospace companies, machinery companies, and manufacturing companies. Improving economic conditions outside of the U.S. also contributed to the demand for industrial goods and services during the reporting period.

Among the Fund’s ten largest holdings as of April 30, 2005, performance was largely positive for the reporting period. Aerospace giant The Boeing Co. delivered strong gains. The Fund’s largest holding, General Electric Co., also performed well for the reporting period, as did United Technologies Corp. and Tyco International Ltd., a diversified manufacturing and services company. Machinery company Caterpillar Inc. also contributed positively to the Fund’s performance. United Parcel Service Inc.’s Class B shares also posted gains for the reporting period. First Data Corp. and 3M Co. were the Fund’s only top ten holdings to decline for the reporting period.


12		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance

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

Performance as of 4/30/05


Average Annual Total Returns											Cumulative Total Returns
*Year Ended 4/30/05*					*Inception to 4/30/05*						*Inception to 4/30/05*
*NAV*	*MARKET*		*INDEX*		*NAV*		*MARKET*		*INDEX*		*NAV*		*MARKET*		*INDEX*
6.44%	6.35	%	7.04	%	6.11	%	6.11	%	6.76	%	33.63	%	33.60	%	37.61	%

GROWTH OF $10 ,000 INVESTMENT

SINCE INCEPTION AT NET ASSET VALUE

LOGO


MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE		13

PORTFOLIO ALLOCATION

As of 4/30/05


*Industry*	*% of* *Net Assets*
Diversified Financial Services	48.84	%
Banks	43.90
Savings & Loans	5.25
Commercial Services	0.93
Insurance	0.68
Software	0.14
Internet	0.02
Short-Term and Other Net Assets	0.24

TOTAL	100.00	%

TOP TEN FUND HOLDINGS

As of 4/30/05



*Security*	% of Net Assets
Citigroup Inc.	13.63	%
Bank of America Corp.	10.17
JP Morgan Chase & Co.	7.07
Wells Fargo & Co.	5.67
Wachovia Corp.	4.55
American Express Co.	3.28
Federal National Mortgage Association	2.92
Morgan Stanley	2.92
U.S. Bancorp	2.91
Merrill Lynch & Co. Inc.	2.58

TOTAL	55.70	%

The iShares Dow Jones U.S. Financial Services Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Dow Jones U.S. Financial Services Index (the “Index”). The Index measures the performance of the financial services sector of the U.S. equity market and includes companies in the following sectors: asset managers, banks, consumer finance, investment services, mortgage finance, specialty finance and general finance. The Fund invests in a representative sample of the securities in the Index, which have a similar investment profile as the Index. For the one-year period ended April 30, 2005 (the “reporting period”), the Fund returned 6.44%, while the Index returned 7.04%.

Financial services companies generally benefited from the strengthening economic environment during the reporting period. Consumer banks responded positively to the signs of economic recovery, and lenders appeared to continue to benefit from high levels of refinance activity. Performance among investment banks was mixed for the reporting period, as some appeared to struggle with market volatility and shifting levels of investor interest.

Performance among the Fund’s ten largest holdings as of April 30, 2005 was mostly positive for the reporting period. Bank of America Corp., the Fund’s second largest holding, and Wachovia Corp. both posted gains for the reporting period. U.S. Bancorp and American Express Co. contributed positively to the Fund’s performance. The Federal National Mortgage Association (Fannie Mae) suffered the steepest decline among the Fund’s ten largest holdings. Investment bank JP Morgan Chase & Co. declined for the reporting period, as did Citigroup Inc., the Fund’s largest holding as of April 30, 2005.


14		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance

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

Performance as of 4/30/05


Average Annual Total Returns											Cumulative Total Returns
*Year Ended 4/30/05*					*Inception to 4/30/05*						*Inception to 4/30/05*
*NAV*	*MARKET*		*INDEX*		*NAV*		*MARKET*		*INDEX*		*NAV*		*MARKET*		*INDEX*
33.62%	32.52	%	34.17	%	17.98	%	17.78	%	18.60	%	124.26	%	122.44	%	129.93	%

GROWTH OF $10 ,000 INVESTMENT

SINCE INCEPTION AT NET ASSET VALUE

LOGO


MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE		15

PORTFOLIO ALLOCATION

As of 4/30/05


*Industry*	*% of* *Net Assets*
Real Estate Investment Trusts	97.08	%
Real Estate	2.02
Diversified Financial Services	0.42
Lodging	0.29
Short-Term and Other Net Assets	0.19

TOTAL	100.00	%

TOP TEN FUND HOLDINGS

As of 4/30/05


*Security*	% of Net Assets
Simon Property Group Inc.	5.83	%
Equity Office Properties Trust	5.11
Equity Residential	3.92
General Growth Properties Inc.	3.77
Vornado Realty Trust	3.63
ProLogis	2.99
Archstone-Smith Trust	2.94
Boston Properties Inc.	2.81
Plum Creek Timber Co. Inc.	2.60
Host Marriott Corp.	2.25

TOTAL	35.85	%

The iShares Dow Jones U.S. Real Estate Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Dow Jones U.S. Real Estate Index (the “Index”). The Index measures the performance of the real estate sector of the U.S. equity market and includes companies in the following sub-sectors: real estate holding and development and real estate investment trusts. The Fund invests in a representative sample of securities in the Index, which have a similar investment profile as the Index. For the one-year period ended April 30, 2005 (the “reporting period”), the Fund returned 33.62%, while the Index returned 34.17%.

The real estate sector was one of the strongest performers during the reporting period, continuing to benefit from a real estate boom. Although interest rates began to rise during the reporting period, they remained attractive enough to generate continued demand for home purchases and refinancing. In addition, the overall improving economic environment benefited companies involved with properties such as shopping centers and public storage units. As the economic economy strengthened, business activity grew, in turn creating more demand for retail space and storage.

All of the Fund’s ten largest holdings as of April 30, 2005 posted double-digit gains for the reporting period. Real estate investment trusts Vornado Realty Trust, General Growth Properties Inc. and Boston Properties Inc. all delivered strong gains for the reporting period, as did Host Marriott Corp. Simon Property Group Inc., the Fund’s largest holding as of April 30, 2005 and ProLogis also performed well. Plum Creek Timber Co. Inc. was the weakest performer among the Fund’s ten largest holdings, although it also posted double-digit gains for the reporting period.


16		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance

iSHARES^® KLD SELECT SOCIAL^SMINDEX FUND

Performance as of 4/30/05

“Cumulative total returns” represent the total change in value of an investment over the period indicated and is calculated from the inception date of the Fund (1/24/05).

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until several days after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (1/28/05), the NAV of the Fund is used as a proxy for the secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

As of the fiscal year ended 4/30/05, the Fund did not have six months of performance and therefore a line graph is not presented.

PORTFOLIO ALLOCATION

As of 4/30/05


*Sector*	% of Net Assets
Financial	28.08	%
Consumer Non-Cyclical	21.36
Technology	14.58
Communications	10.27
Industrial	8.70
Consumer Cyclical	7.04
Energy	6.46
Basic Materials	3.04
Utilities	0.37
Short-Term and Other Net Assets	0.10

TOTAL	100.00	%

TOP TEN FUND HOLDINGS

As of 4/30/05


*Security*	% of Net Assets
Wells Fargo & Co.	5.07	%
Microsoft Corp.	3.68
Procter & Gamble Co.	3.34
Bank of America Corp.	2.75
Intel Corp.	2.74
General Mills Inc.	2.60
Federal National Mortgage Association	2.48
Johnson & Johnson	2.34
Exxon Mobil Corp.	2.33
General Electric Co.	2.21

TOTAL	29.54	%

The iShares KLD Select Social^SMIndex Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the KLD Select Social^SMIndex (the “Index”). The Index is designed to maximize exposure to large capitalization companies that KLD determines have positive social and environmental characteristics, while maintaining risk and return characteristics similar to the Russell 1000 Index. The Fund invests in a representative sample of securities in the Index, which have a similar investment profile as the Index. From its inception on January 24, 2005 through April 30, 2005, the Fund declined 1.07%, while the Index declined 0.93%.

Broad equity markets, as measured by the Dow Jones U.S. Total Market Index, generally struggled during the reporting period. On the economic front, news was generally positive. Gross domestic product data showed signs of moderate economic growth in the reporting period, and employment figures released during the reporting period reflected job growth. However, oil prices escalated during the reporting period, topping $57 per barrel in early April, leading to concerns about inflation. The Federal Reserve Board raised short-term interest rates two times during the reporting period, from 2.25% to 2.75%. The concerns about high oil prices and the prospect of further increases in interest rates appeared to dampen investor enthusiasm, causing markets to languish.


MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE		17

Sector performance in the Index during the reporting period was mostly negative. Financials, the largest sector in the Index, declined, in part due to declining asset values and waning investor interest during the reporting period. Industrials and information technology stocks also generally lost ground, as did materials. Healthcare stocks overall were the strongest performing sector within the Index. Energy stocks also performed well, benefiting largely from rising oil prices during the reporting period.

Among the Fund’s ten largest holdings as of April 30, 2005, performance was mixed for the reporting period. Healthcare company Johnson & Johnson logged the strongest gains, followed closely by diversified oil company Exxon Mobil Corp. Intel Corp. also performed well for the reporting period. Wells Fargo & Co., the Fund’s largest holding as of April 30, 2005, posted a slight gain. The Federal National Mortgage Association (Fannie Mae) experienced the steepest decline among the Fund’s ten largest holdings. Packaged foods producer General Mills Inc. and consumer products company Procter & Gamble Co. also declined for the reporting period.


18		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance

iSHARES^® COHEN & STEERS REALTY MAJORS INDEX FUND

Performance as of 4/30/05


Average Annual Total Returns											Cumulative Total Returns
*Year Ended 4/30/05*					*Inception to 4/30/05*						*Inception to 4/30/05*
*NAV*	*MARKET*		*INDEX*		*NAV*		*MARKET*		*INDEX*		*NAV*		*MARKET*		*INDEX*
38.61%	38.45	%	39.83	%	18.94	%	18.88	%	19.51	%	109.07	%	108.61	%	113.31	%

Total returns for the periods since inception are calculated from the inception date of the Fund (1/29/01). “Average annual total returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative total returns” represent the total change in value of an investment over the periods indicated.

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

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

GROWTH OF $10,000 INVESTMENT

SINCE INCEPTION AT NET ASSET VALUE

LOGO


MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE		19

PORTFOLIO ALLOCATION

As of 4/30/05


*Industry*	% of Net Assets
Real Estate Investment Trusts	98.51	%
Exchange-Traded Funds	0.86
Short-Term and Other Net Assets	0.63

TOTAL	100.00	%

TOP TEN FUND HOLDINGS

As of 4/30/05


*Security*	% of Net Assets
Equity Office Properties Trust	8.91	%
Simon Property Group Inc.	8.80
Vornado Realty Trust	6.95
Boston Properties Inc.	5.30
Public Storage Inc.	5.24
Equity Residential	4.74
Kimco Realty Corp.	4.58
Host Marriott Corp.	4.17
Archstone-Smith Trust	3.85
AvalonBay Communities Inc.	3.83

TOTAL	56.37	%

The iShares Cohen & Steers Realty Majors Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Cohen & Steers Realty Majors Index (the “Index”). The Index consists of selected real estate investment trusts (“REITs”). The objective of the Index is to represent relatively large and liquid REITs that may benefit from future consolidation and securitization of the U.S. real estate industry. The Fund invests in a representative sample of the securities in the Index, which have a similar investment profile as the Index. For the one-year period ended April 30, 2005 (the “reporting period”), the Fund returned 38.61%, while the Index returned 39.83%.

Real estate stocks were generally some of the strongest performers for the reporting period, benefiting largely from high demand in a low-interest rate environment. In particular, the improving economic conditions translated into increased business for shopping malls, public storage facilities, and office complexes, in which REITs invest. Strong performance in these areas benefited individual constituents of the Fund, all of which are REITs.

Among the Fund’s ten largest holdings as of April 30, 2005, all posted double-digit gains for the reporting period. Vornado Realty Trust was the strongest performer for the reporting period. Host Marriott Corp., Boston Properties Inc., and AvalonBay Communities Inc. all performed well. Simon Property Group Inc., the Fund’s second largest holding, was a positive contributor to the Fund’s performance, as was Public Storage Inc. Equity Office Properties Trust, the Fund’s largest holding as of April 30, 2005, was the weakest performer among the Fund’s ten largest holdings, but delivered double-digit gains for the reporting period.


20		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Shareholder Expenses

iSHARES^® TRUST

As a shareholder of an iShares Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares; and (2) ongoing costs, including management fees and other fund expenses. The following Example is intended to help you understand your ongoing costs (in dollars and cents) of investing in a Fund and to compare these costs with the ongoing costs of investing in other funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from November 1, 2004 to April 30, 2005.

Actual Expenses

The first line under each Fund in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line for your Fund under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line under each Fund in the table below provides information about hypothetical account values and hypothetical expenses based on each Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions paid on purchases and sales of fund shares. Therefore, the second line under each Fund in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.


iShares Index Fund	Beginning Account Value (November 1, 2004)†		Ending Account Value (April 30, 2005)†		Annualized Expense Ratio		Expenses Paid During Period* (November 1, 2004 to April 30, 2005)
Dow Jones U.S. Basic Materials Sector
Actual	$	1,000.00	$	1,026.90	0.60	%	$	3.02
Hypothetical (5% return before expenses)		1,000.00		1,021.82	0.60			3.01
Dow Jones U.S. Consumer Goods Sector
Actual		1,000.00		1,074.20	0.60			3.09
Hypothetical (5% return before expenses)		1,000.00		1,021.82	0.60			3.01
Dow Jones U.S. Consumer Services Sector
Actual		1,000.00		996.20	0.60			2.97
Hypothetical (5% return before expenses)		1,000.00		1,021.82	0.60			3.01
Dow Jones U.S. Financial Sector
Actual		1,000.00		1,006.70	0.60			2.99
Hypothetical (5% return before expenses)		1,000.00		1,021.82	0.60			3.01


SHAREHOLDER EXPENSES		21

Shareholder Expenses (Continued)

iSHARES^® TRUST


iShares Index Fund	Beginning Account Value (November 1, 2004)†		Ending Account Value (April 30, 2005)†		Annualized Expense Ratio		Expenses Paid During Period* (November 1, 2004 to April 30, 2005)
Dow Jones U.S. Industrial Sector
Actual	$	1,000.00	$	1,025.90	0.60	%	$	3.01
Hypothetical (5% return before expenses)		1,000.00		1,021.82	0.60			3.01
Dow Jones U.S. Financial Services
Actual		1,000.00		996.00	0.60			2.97
Hypothetical (5% return before expenses)		1,000.00		1,021.82	0.60			3.01
Dow Jones U.S. Real Estate
Actual		1,000.00		1,070.30	0.60			3.08
Hypothetical (5% return before expenses)		1,000.00		1,021.82	0.60			3.01
KLD Select Social
Actual		1,000.00		989.30	0.50			1.32
Hypothetical (5% return before expenses)		1,000.00		1,011.96	0.50			1.34
Cohen & Steers Realty Majors
Actual		1,000.00		1,081.60	0.35			1.81
Hypothetical (5% return before expenses)		1,000.00		1,023.06	0.35			1.76

^†	Account values are based on a start date of January 24, 2005 (commencement of operations) for the iShares KLD Select Social Index Fund.

Except for the iShares KLD Select Social Index Fund, expenses are calculated using each Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days), and divided by the number of days in the year (365 days). Expenses for the iShares KLD Select Social Index Fund, which commenced operations on January 24, 2005, are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (97 days), and divided by the number of days in the year (365 days).


22		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

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

April 30, 2005


*Security*	*Shares*	*Value*
COMMON STOCKS – 99.95%

AGRICULTURE – 4.38%
Monsanto Co.	308,423	$	18,079,756

			18,079,756

BIOTECHNOLOGY – 0.13%
Cambrex Corp.¹	28,580		543,020

			543,020

CHEMICALS – 54.86%
Air Products & Chemicals Inc.	245,994		14,447,228
Airgas Inc.¹	74,132		1,624,973
Albemarle Corp.¹	42,713		1,563,723
Ashland Inc.	81,298		5,466,478
Cabot Corp.	71,351		2,179,773
Crompton Corp.	132,460		1,861,063
Cytec Industries Inc.¹	41,715		1,923,896
Dow Chemical Co. (The)	1,101,340		50,584,546
Du Pont (E.I.) de Nemours and Co.	1,147,100		54,039,881
Eastman ChemicalCo.	90,032		4,861,728
Ecolab Inc.	213,823		6,994,150
Engelhard Corp.	143,531		4,396,355
Ferro Corp.¹	48,406		877,117
FMC Corp.^1,2	39,739		1,947,211
Fuller (H.B.) Co.¹	33,043		1,001,864
Georgia Gulf Corp.	38,157		1,408,375
Great Lakes Chemical Corp.	58,706		1,822,234
Hercules Inc.²	116,108		1,536,109
International Flavors & Fragrances Inc.	100,089		3,793,373
Lubrizol Corp.	75,536		2,928,531
Lyondell Chemical Co.	236,172		5,925,555
MacDermid Inc.¹	29,288		888,891
Minerals Technologies Inc.¹	23,719		1,549,325
Mosaic Co. (The)^1,2	145,844		1,874,095
Olin Corp.¹	80,478		1,427,680
OM Group Inc.²	32,758		718,711
PPG Industries Inc.	198,398		13,401,785
Praxair Inc.	375,589		17,588,833
Rohm & Haas Co.	166,545		7,271,355
RPM International Inc.¹	134,036		2,312,121
Schulman (A.) Inc.¹	34,775		580,742
Sensient Technologies Corp.¹	50,689		1,014,287
Sigma-Aldrich Corp.	68,341		3,993,165
Valspar Corp. (The)	55,031		2,274,431
Wellman Inc.	36,914		397,195

			226,476,779

COAL – 4.19%
Arch Coal Inc.¹	70,959		3,146,322
CONSOL Energy Inc.¹	103,817		4,489,047
Massey Energy Co.¹	87,577		3,162,405
Peabody Energy Corp.	148,356		6,493,542

			17,291,316

FOREST PRODUCTS & PAPER – 12.26%
Bowater Inc.¹	64,262		2,087,872
Caraustar Industries Inc.²	32,589		291,346
International Paper Co.	561,653		19,259,081
MeadWestvaco Corp.	233,129		6,865,649
Neenah Paper Inc.	17,323		521,249
Pope & Talbot Inc.¹	18,110		236,335
Potlatch Corp.¹	34,029		1,607,190
Wausau-Mosinee Paper Corp.¹	56,034		743,571
Weyerhaeuser Co.	277,053		19,008,606

			50,620,899

HOUSEHOLD PRODUCTS & WARES – 1.87%
Avery Dennison Corp.¹	112,806		5,905,394
Scotts Miracle-Gro Co. (The) Class A^1,2	25,194		1,824,046

			7,729,440

IRON & STEEL – 5.22%
AK Steel Holding Corp.^1,2	119,165		863,946
Allegheny Technologies Inc.¹	89,769		2,010,826
Carpenter Technology Corp.¹	25,150		1,390,795
Cleveland-Cliffs Inc.	24,890		1,443,869
Nucor Corp.	166,409		8,503,500
Ryerson Tull Inc.¹	26,360		275,462
Steel Dynamics Inc.	53,976		1,467,068
United States Steel Corp.¹	131,339		5,616,056

			21,571,522

MANUFACTURING – 0.12%
Tredegar Corp.¹	29,262		475,800

			475,800

METAL FABRICATE & HARDWARE – 0.74%
Commercial Metals Co.¹	68,169		1,738,991
Worthington Industries Inc.¹	81,883		1,331,418

			3,070,409


SCHEDULES OF INVESTMENTS		23

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	*Shares or* *Principal*		*Value*
MINING – 16.18%
Alcoa Inc.		1,006,256	$	29,201,549
Coeur d’Alene Mines Corp.^1,2		275,183		850,315
Freeport-McMoRan Copper & Gold Inc.		200,734		6,957,440
Meridian Gold Inc.²		114,638		1,747,083
Newmont Mining Corp.		469,015		17,808,500
Phelps Dodge Corp.		108,580		9,321,593
RTI International Metals Inc.^1,2		24,527		551,612
Stillwater Mining Co.²		50,030		365,219

				66,803,311

TOTAL COMMON STOCKS (Cost: $419,696,572)				412,662,252

SHORT-TERM INVESTMENTS – 8.34%

COMMERCIAL PAPER³ – 2.19%
Alpine Securitization Corp.
2.80%, 05/04/05	$	435,479		435,398
Amstel Funding Corp.
2.95%, 08/19/05		63,291		62,727
Amsterdam Funding Corp.
2.80% - 3.02%, 05/04/05 - 05/27/05		172,060		171,886
ANZ National Bank Ltd.
2.94%, 08/15/05		76,133		75,481
Blue Ridge Asset Funding Corp.
3.02%, 06/02/05		228,398		227,804
Bryant Park Funding LLC
2.75%, 05/03/05		30,453		30,451
Cancara Asset Securitisation LLC
2.80% - 2.97%, 05/03/05 - 05/23/05		504,986		504,859
Cantabric Finance LLC
3.04% - 3.12%, 06/28/05 - 07/25/05		190,332		189,090
Chariot Funding LLC
2.99%, 05/20/05		36,203		36,148
Charta LLC
2.99%, 06/16/05 - 06/21/05		319,757		318,494
Chesham Finance LLC
2.89% - 3.01%, 05/10/05 - 06/21/05		540,542		539,884

*Security*	*Principal*		*Value*
Corporate Asset Funding
2.75% - 2.99%, 05/05/05 - 06/16/05	$	281,691	$	281,014
CRC Funding LLC
2.95% - 3.00%, 05/02/05 - 06/29/05		266,464		266,033
DEPFA Bank PLC
2.28%, 05/03/05		76,133		76,128
Deutsche Bank Financial LLC
2.80%, 05/03/05		456,796		456,761
Edison Asset Securitization
2.26% - 3.12%, 05/03/05 - 09/06/05		517,702		516,405
Fairway Finance LLC
3.15%, 09/15/05		135,448		133,836
Falcon Asset Securitization Corp.
2.79% - 3.02%, 05/03/05 - 06/01/05		305,059		304,694
Ford Credit Auto Receivables
2.74%, 05/04/05		74,610		74,599
Fortis Funding LLC
2.35%, 05/09/05		213,171		213,074
Gemini Securitization Corp.
3.02%, 06/27/05		15,227		15,156
General Electric Capital Corp.
2.74%, 07/07/05		76,133		75,750
Georgetown Funding Co. LLC
2.81% - 3.05%, 05/03/05 - 06/16/05		334,984		334,528
Grampian Funding LLC
3.00% - 3.13%, 08/22/05 - 09/09/05		456,796		452,367
Jupiter Securization Corp.
2.99% - 3.02%, 05/19/05 - 06/03/05		614,665		613,437
Kitty Hawk Funding Corp.
2.88%, 05/04/05		114,983		114,965
Moat Funding LLC
2.74%, 05/02/05		106,586		106,586
Mortgage Interest Networking Trust
2.82% - 3.05%, 05/02/05 - 05/24/05		197,945		197,919


24		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	*Principal*		*Value*
Nordea North America Inc.
2.74%, 07/11/05	$	76,133	$	75,727
Park Granada LLC
3.04%, 05/25/05 - 05/31/05		98,972		98,769
Ranger Funding Co. LLC
2.89% - 3.02%, 05/04/05 - 05/27/05		246,138		245,889
Santander Central Hispano
2.75%, 07/08/05		190,332		189,359
Scaldis Capital LLC
2.75% - 2.99%, 05/16/05 - 07/08/05		449,225		448,482
Societe Generale
2.75% - 2.79%, 05/02/05 - 05/03/05		525,315		525,287
Sydney Capital Corp.
2.81%, 05/04/05		50,248		50,240
Tulip Funding Corp.
2.80% - 3.02%, 05/03/05 - 07/01/05		418,730		418,546
UBS Finance (Delaware)
2.79%, 05/04/05		121,812		121,793
Windmill Funding Corp.
2.80%, 05/04/05		47,050		47,043

				9,046,609

FLOATING RATE NOTES³ – 2.97%
Allstate Life Global Funding II
2.91%, 03/08/06⁴		70,042		70,044
American Express Centurion Bank
2.98% - 3.04%, 10/26/05 - 01/24/06		532,929		533,002
Bank of Nova Scotia
2.80% - 2.94%, 09/26/05 - 01/03/06		98,972		98,953
Beta Finance Inc.
2.81% - 3.16%, 05/04/05 - 04/25/06⁴		584,699		584,727
BMW US Capital LLC
2.92%, 04/18/06⁴		152,265		152,265
Canadian Imperial Bank of Commerce
2.86% - 3.00%, 09/13/05 - 12/14/05		517,702		517,628
CC USA Inc.
2.81% - 3.12%, 05/04/05 - 03/23/06⁴		395,890		395,876
Commodore CDO Ltd.
3.08%, 12/12/05		38,066		38,066
Den Danske Bank NY
2.85% - 2.96%, 08/12/05 - 10/17/05		456,796		456,748
DEPFA Bank PLC
2.99%, 03/15/06		152,265		152,265
Dorada Finance Inc.
3.00% - 3.12%, 07/29/05 - 03/27/06⁴		330,416		330,431
Fairway Finance LLC
2.94%, 06/20/05		76,133		76,132
Fifth Third Bancorp
2.98%, 02/23/06⁴		304,531		304,531
Five Finance Inc.
3.01%, 02/27/06⁴		76,133		76,141
General Electric Capital Corp.
3.01%, 05/09/06		68,519		68,602
General Electric Commercial Equipment Financing LLC
2.95%, 11/20/05		43,806		43,806
Greenwich Capital Holdings Inc.
2.83%, 09/02/05		98,972		98,972
Hartford Life Global Funding Trust
2.94%, 04/15/06		152,265		152,265
HBOS Treasury Services PLC
2.87% - 3.08%, 01/10/06 - 04/24/06		456,796		456,795
K2 USA LLC
2.87% - 3.11%, 06/10/05 - 02/15/06⁴		685,194		685,207
Leafs LLC
2.99%, 01/20/06 - 02/21/06⁴		159,879		159,880
Links Finance LLC
2.92% - 3.15%, 11/16/05 - 02/06/06⁴		319,757		319,878
Lothian Mortgages PLC
3.01%, 01/24/06⁴		228,398		228,398


SCHEDULES OF INVESTMENTS		25

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	*Principal*		*Value*
Marshall & Ilsley Corp.
3.09% , 02/20/06	$	152,265	$	152,412
MetLife Global Funding I
2.86%, 05/05/06⁴		228,398		228,398
National City Bank (Ohio)
2.84% - 2.95%, 06/10/05 - 08/09/05		380,663		380,647
Nationwide Building Society
2.89% - 3.12%, 01/13/06 - 04/28/06⁴		563,382		563,480
Norddeutsche Landesbank
3.11%, 07/27/05		152,265		152,253
Northern Rock PLC
2.88% - 2.99%, 10/25/05 - 02/03/06⁴		456,796		456,796
Permanent Financing PLC
2.87% - 2.89%, 06/10/05 - 03/10/06		540,542		540,543
Royal Bank of Scotland
2.79% - 2.91%, 06/20/05 - 04/05/06		206,700		206,636
Sedna Finance Inc.
2.92%, 01/10/06 - 01/17/06⁴		83,746		83,730
Sigma Finance Inc.
2.82% - 3.16%, 08/17/05 - 01/09/06⁴		776,553		776,577
Societe Generale
2.99%, 03/30/06		129,426		129,386
SunTrust Bank
3.17%, 04/28/06		228,398		228,398
Tango Finance Corp.
2.74% - 2.99%, 05/17/05 - 09/15/05⁴		412,639		412,628
Wachovia Asset Securitization Inc.
3.00% - 3.01%, 05/25/05		414,760		414,761
Wells Fargo & Co.
2.92%, 05/15/06⁴		76,133		76,142
WhistleJacket Capital LLC
2.86% - 2.97%, 06/15/05 - 01/17/06⁴		532,929		532,894

*Security*	*Shares or* *Principal*		*Value*
White Pine Finance LLC
2.80% - 3.09%, 05/20/05 - 01/13/06⁴	$	653,218	$	653,176
Windmill Funding Corp.
2.78%, 05/03/05		106,586		106,578
Winston Funding Ltd.
3.22%, 07/23/05⁴		108,717		108,717
World Savings Bank
2.86%, 09/09/05		53,293		53,291

				12,258,055

MONEY MARKET FUNDS – 0.32%
Barclays Global Investors Funds Government Money Market Fund, Institutional Shares^3,5		609,061		609,061
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares⁵		628,549		628,549
BlackRock Temp Cash Money Market Fund³		22,057		22,057
Short-Term Investment Co. - Prime Money Market Portfolio, Institutional Shares³		61,692		61,692

				1,321,359

REPURCHASE AGREEMENTS³ – 1.69%
Bank of America N.A. Repurchase Agreement, dated 4/29/05, due 5/2/05, with a maturity value of $3,807,575 and an effective yield of 2.97%.⁶	$	3,806,633		3,806,633
Goldman Sachs & Co. Repurchase Agreements, dated 4/29/05, due 5/2/05, with a total maturity value of $1,851,502 and effective yields of 2.96% - 3.00%.⁶		1,851,044		1,851,044
Merrill Lynch Government Securities Inc. Repurchase Agreements, dated 4/29/05, due 5/2/05, with a total maturity value of $1,292,818 and effective yields of 2.96% - 3.00%.⁶		1,292,499		1,292,499

				6,950,176


26		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	*Principal*		*Value*
TIME DEPOSITS³ – 1.10%
American Express Centurion Bank
3.00%, 05/25/05	$	380,663	$	380,663
Banco Bilbao Vizcaya Argentaria SA
3.03% - 3.18%, 06/27/05 - 09/14/05		220,785		220,785
BNP Paribas (New York)
2.78% - 3.03%, 07/11/05 - 08/23/05		213,171		213,171
Credit Suisse First Boston
2.75% - 2.81%, 05/03/05		197,945		197,945
Dexia Credit Local SA
2.81% - 3.01%, 05/04/05 - 06/21/05		296,917		296,918
First Tennessee Bank
3.00% - 3.04%, 06/14/05 - 06/27/05		266,464		266,465
HBOS Treasury Services PLC
3.39%, 12/14/05		91,359		91,360
Natexis Banques
2.98%, 08/18/05		152,265		152,265
Norddeutsche Landesbank
2.11%, 06/07/05		152,265		152,262
Societe Generale
2.81%, 05/03/05		106,586		106,586
SunTrust Bank
2.68%, 05/03/05		152,265		152,265
Svenska Handelsbanken AB
3.00%, 06/20/05		76,133		76,133
Toronto-Dominion Bank
1.77% - 3.18%, 05/10/05 - 11/09/05		464,409		464,400
UBS AG
2.67% - 3.40%, 11/09/05 - 12/15/05		121,812		121,812
Washington Mutual Bank
2.81% - 3.15%, 05/02/05 - 07/28/05		982,111		982,111
Wells Fargo Bank N.A.
3.04%, 06/29/05		456,796		456,796
World Savings Bank
2.75%, 05/03/05		213,171		213,171

				4,545,108

U.S. GOVERNMENT AGENCY NOTES³ – 0.07%
Federal Home Loan Mortgage Corp.
2.06%, 05/31/05		75,909		75,783
Federal National Mortgage Association
2.33%, 07/22/05		228,398		227,204

				302,987

TOTAL SHORT-TERM INVESTMENTS (Cost: $34,424,294)				34,424,294

TOTAL INVESTMENTS IN SECURITIES – 108.29% (Cost: $454,120,866)				447,086,546
Other Assets, Less Liabilities – (8.29%)				(34,232,276	)

NET ASSETS – 100.00%			$	412,854,270

¹	All or a portion of this security represents a security on loan. See Note 5.

²	Non-income earning security.

³	All or a portion of this security (these securities) represent(s) an investment of securities lending collateral. See Note 5.

⁴	All or a portion of this security is 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	The Fund’s investment adviser is an affiliate of the issuer. See Note 2.

⁶	Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 3.12% to 7.13% and maturity dates ranging from 5/25/05 to 8/1/42.

See notes to financial statements.


SCHEDULES OF INVESTMENTS		27

Schedule of Investments

iSHARES^® DOW JONES U.S. CONSUMER GOODS SECTOR INDEX FUND

April 30, 2005


*Security*	*Shares*	*Value*
COMMON STOCKS – 99.85%

AGRICULTURE – 13.69%
Altria Group Inc.	753,205	$	48,950,793
Bunge Ltd.	40,451		2,297,617
Loews Corp. - Carolina Group	22,920		721,980
Reynolds American Inc.¹	31,609		2,464,554
Universal Corp.¹	9,367		427,604
UST Inc.	60,704		2,780,243

			57,642,791

APPAREL – 4.15%
Coach Inc.²	138,062		3,700,062
Jones Apparel Group Inc.	45,627		1,389,342
Kellwood Co.	10,141		259,001
Liz Claiborne Inc.	39,410		1,396,296
Nike Inc. Class B	63,451		4,873,671
Phillips-Van Heusen Corp.	9,302		240,736
Polo Ralph Lauren Corp.	20,980		736,398
Quiksilver Inc.²	21,335		587,779
Reebok International Ltd.¹	18,030		732,198
Russell Corp.¹	10,443		182,857
Stride Rite Corp.	13,251		161,662
Timberland Co. Class A²	7,865		543,078
Tommy Hilfiger Corp.²	33,941		371,315
Unifi Inc.²	18,532		56,893
VF Corp.	32,119		1,817,614
Wolverine World Wide Inc.	20,967		425,420

			17,474,322

AUTO MANUFACTURERS – 2.47%
Ford Motor Co.	645,783		5,883,083
General Motors Corp.¹	169,738		4,528,610

			10,411,693

AUTO PARTS & EQUIPMENT – 2.22%
American Axle & Manufacturing Holdings Inc.	16,365		326,645
ArvinMeritor Inc.¹	25,361		301,289
BorgWarner Inc.¹	20,424		933,785
Cooper Tire & Rubber Co.	27,354		477,327
Dana Corp.¹	54,613		623,680
Delphi Corp.	181,662		599,485
Goodyear Tire & Rubber Co. (The)²	64,135		761,282
Johnson Controls Inc.	69,705		3,824,713
Lear Corp.¹	25,102		850,707
Modine Manufacturing Co.¹	11,356		307,521
Superior Industries International Inc.¹	7,962		161,867
Visteon Corp.	47,983		167,941

			9,336,242

BEVERAGES – 21.84%
Anheuser-Busch Companies Inc.	293,998		13,779,686
Brown-Forman Corp. Class B	14,595		810,023
Coca-Cola Co. (The)	816,383		35,463,678
Coca-Cola Enterprises Inc.	90,988		1,847,056
Constellation Brands Inc.^1,2	35,023		1,846,062
Molson Coors Brewing Co. Class B	25,899		1,599,263
Pepsi Bottling Group Inc.	56,612		1,623,066
PepsiAmericas Inc.	25,275		624,040
PepsiCo Inc.	618,150		34,393,866

			91,986,740

BIOTECHNOLOGY – 0.10%
Martek Biosciences Corp.^1,2	11,440		437,809

			437,809

COMMERCIAL SERVICES – 0.15%
Weight Watchers International Inc.^1,2	15,293		638,483

			638,483

COMPUTERS – 0.03%
Lexar Media Inc.^1,2	27,575		124,915

			124,915

COSMETICS & PERSONAL CARE – 23.39%
Alberto-Culver Co.	29,987		1,334,422
Avon Products Inc.	173,610		6,958,289
Colgate-Palmolive Co.	194,943		9,706,212
Estee Lauder Companies Inc. Class A	49,337		1,895,034
Gillette Co. (The)	334,567		17,277,040
Kimberly-Clark Corp.	179,027		11,180,236
Procter & Gamble Co.	925,665		50,124,760

			98,475,993

DISTRIBUTION & WHOLESALE – 0.80%
Genuine Parts Co.	64,305		2,758,685
SCP Pool Corp.¹	19,318		629,380

			3,388,065


28		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® DOW JONES U.S. CONSUMER GOODS SECTOR INDEX FUND

April 30, 2005


*Security*	*Shares*		*Value*
ELECTRICAL COMPONENTS & EQUIPMENT – 0.46%
Energizer Holdings Inc.²	25,875		$	1,474,099
Rayovac Corp.²	12,966			472,481

				1,946,580

ELECTRONICS – 0.42%
Garmin Ltd.¹	21,197			837,282
Gentex Corp.¹	28,335			919,754

				1,757,036

FOOD – 13.17%
American Italian Pasta Co. Class A¹	6,735			159,350
Archer-Daniels-Midland Co.	217,555			3,913,814
Campbell Soup Co.	93,487			2,780,303
Chiquita Brands International Inc.¹	14,157			354,633
ConAgra Foods Inc.	193,789			5,183,856
Corn Products International Inc.¹	27,068			596,037
Dean Foods Co.²	54,804			1,883,065
Del Monte Foods Co.²	72,706			758,324
Dreyer’s Grand Ice Cream Holdings Inc.¹	10,360			838,228
Flowers Foods Inc.¹	14,850			428,274
General Mills Inc.¹	130,480			6,445,712
Hain Celestial Group Inc.^1,2	11,038			195,925
Heinz (H.J.) Co.	129,128			4,758,367
Hershey Co. (The)	63,091			4,031,515
Hormel Foods Corp.	27,265			849,032
Kellogg Co.	86,723			3,898,199
Kraft Foods Inc.	95,678			3,100,924
McCormick & Co. Inc. NVS	41,336			1,429,812
Ralcorp Holdings Inc.¹	10,735			425,321
Sara Lee Corp.	289,792			6,198,651
Smithfield Foods Inc.²	31,867			964,295
Smucker (J.M.) Co. (The)¹	21,301			1,056,956
Tootsie Roll Industries Inc.¹	8,500			262,480
Tyson Foods Inc. Class A	86,420			1,459,634
Wrigley (William Jr.) Co.	50,631			3,500,121

				55,472,828

HAND & MACHINE TOOLS – 1.04%
Black & Decker Corp.	29,466			2,464,242
Snap-On Inc.	19,279			639,484
Stanley Works (The)	29,875			1,285,521

				4,389,247

HEALTH CARE - PRODUCTS – 0.03%
Oakley Inc.		9,477		126,518

				126,518

HOME BUILDERS – 5.04%
Beazer Homes USA Inc.		13,970		637,032
Centex Corp.		45,473		2,624,702
Champion Enterprises Inc.²		26,595		251,057
D.R. Horton Inc.		107,574		3,281,007
Fleetwood Enterprises Inc.^1,2		20,409		155,925
Hovnanian Enterprises Inc. Class A^1,2		12,447		631,934
KB Home		27,124		1,546,068
Lennar Corp. Class A		45,206		2,326,753
Lennar Corp. Class B		4,090		195,952
M.D.C. Holdings Inc.		11,108		726,241
Meritage Homes Corp.^1,2		7,922		501,383
Monaco Coach Corp.¹		10,034		142,282
NVR Inc.²		2,127		1,527,930
Pulte Homes Inc.		38,525		2,752,611
Ryland Group Inc.		17,353		1,065,474
Standard-Pacific Corp.		11,122		796,446
Thor Industries Inc.¹		14,242		383,822
Toll Brothers Inc.²		17,336		1,314,069
Winnebago Industries Inc.¹		12,194		355,333

				21,216,021

HOME FURNISHINGS – 1.55%
Ethan Allen Interiors Inc.¹		12,264		369,514
Furniture Brands International Inc.¹		18,527		359,053
Harman International Industries Inc.		24,230		1,903,993
La-Z-Boy Inc.¹		19,407		229,779
Leggett & Platt Inc.		70,192		1,892,376
Maytag Corp.¹		26,855		260,225
Whirlpool Corp.		24,290		1,507,437

				6,522,377

HOUSEHOLD PRODUCTS & WARES – 1.77%
Blyth Inc.		10,929		299,564
Church & Dwight Co. Inc.¹		22,609		814,376
Clorox Co.		78,252		4,953,352
Fossil Inc.²		14,261		331,711
Tupperware Corp.¹		19,092		402,841
WD-40 Co.¹		5,851		164,062
Yankee Candle Co. Inc. (The)^1,2		18,265		507,584

				7,473,490


SCHEDULES OF INVESTMENTS		29

Schedule of Investments (Continued)

iSHARES^® DOW JONES U.S. CONSUMER GOODS SECTOR INDEX FUND

April 30, 2005


*Security*	*Shares*		*Value*
HOUSEWARES – 0.52%
Newell Rubbermaid Inc.¹		101,059	$	2,196,012

				2,196,012

LEISURE TIME – 1.55%
Callaway Golf Co.¹		23,986		258,569
Harley-Davidson Inc.		108,201		5,087,611
Nautilus Inc.¹		11,338		281,863
Polaris Industries Inc.¹		15,867		913,305

				6,541,348

MACHINERY – 0.15%
Briggs & Stratton Corp.¹		18,847		610,077

				610,077

MANUFACTURING – 1.17%
Actuant Corp. Class A^1,2		9,649		410,951
Eastman Kodak Co.¹		105,295		2,632,375
Lancaster Colony Corp.¹		10,353		430,271
Pentair Inc.		36,700		1,459,926

				4,933,523

OFFICE FURNISHINGS – 0.47%
Herman Miller Inc.¹		26,062		745,373
HNI Corp.		17,115		867,046
Interface Inc. Class A²		16,495		98,970
Steelcase Inc. Class A		19,769		259,765

				1,971,154

PHARMACEUTICALS – 0.11%
NBTY Inc.^1,2		22,264		474,669

				474,669

RETAIL – 0.18%
Genesco Inc.^1,2		8,104		208,516
Kenneth Cole Productions Inc. Class A		3,401		101,962
Nu Skin Enterprises Inc. Class A¹		19,358		425,876

				736,354

SOFTWARE – 1.85%
Activision Inc.²		67,511		976,209
Electronic Arts Inc.²		109,601		5,851,597
Take-Two Interactive Software Inc.²		24,625		579,426
THQ Inc.^1,2		14,459		364,656

				7,771,888

TEXTILES – 0.43%
G&K Services Inc. Class A¹		7,143		274,148

*Security*	*Shares or* *Principal*		*Value*
Mohawk Industries Inc.^1,2		19,707	$	1,533,402

				1,807,550

TOYS, GAMES & HOBBIES – 1.10%
Hasbro Inc.		57,943		1,096,282
Jakks Pacific Inc.^1,2		9,581		180,027
Marvel Enterprises Inc.^1,2		30,130		590,548
Mattel Inc.		152,153		2,746,362

				4,613,219

TOTAL COMMON STOCKS (Cost: $423,263,163)				420,476,944

SHORT-TERM INVESTMENTS – 7.11%

COMMERCIAL PAPER³ – 1.89%
Alpine Securitization Corp.
2.80%, 05/04/05	$	383,125		383,056
Amstel Funding Corp.
2.95%, 08/19/05		55,682		55,184
Amsterdam Funding Corp.
2.80% - 3.02%, 05/04/05 - 05/27/05		151,375		151,221
ANZ National Bank Ltd.
2.94%, 08/15/05		66,980		66,407
Blue Ridge Asset Funding Corp.
3.02%, 06/02/05		200,940		200,417
Bryant Park Funding LLC
2.75%, 05/03/05		26,792		26,790
Cancara Asset Securitisation LLC
2.80% - 2.97%, 05/03/05 - 05/23/05		444,277		444,164
Cantabric Finance LLC
3.04% - 3.12%, 06/28/05 - 07/25/05		167,450		166,357
Chariot Funding LLC
2.99%, 05/20/05		31,850		31,803
Charta LLC
2.99%, 06/16/05 - 06/21/05		281,316		280,205
Chesham Finance LLC
2.89% - 3.01%, 05/10/05 - 06/21/05		475,558		474,979
Corporate Asset Funding
2.75% - 2.99%, 05/05/05 - 06/16/05		247,826		247,229


30		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® DOW JONES U.S. CONSUMER GOODS SECTOR INDEX FUND

April 30, 2005


*Security*	*Principal*		*Value*
CRC Funding LLC
2.95% - 3.00%, 05/02/05 - 06/29/05	$	234,430	$	234,051
DEPFA Bank PLC
2.28%, 05/03/05		66,980		66,976
Deutsche Bank Financial LLC
2.80%, 05/03/05		401,880		401,849
Edison Asset Securitization
2.26% - 3.12%, 05/03/05 - 09/06/05		455,464		454,323
Fairway Finance LLC
3.15%, 09/15/05		119,164		117,746
Falcon Asset Securitization Corp.
2.79% - 3.02%, 05/03/05 - 06/01/05		268,385		268,065
Ford Credit Auto Receivables
2.74%, 05/04/05		65,640		65,630
Fortis Funding LLC
2.35%, 05/09/05		187,544		187,458
Gemini Securitization Corp.
3.02%, 06/27/05		13,396		13,333
General Electric Capital Corp.
2.74%, 07/07/05		66,980		66,644
Georgetown Funding Co. LLC
2.81% - 3.05%, 05/03/05 - 06/16/05		294,712		294,311
Grampian Funding LLC
3.00% - 3.13%, 08/22/05 - 09/09/05		401,880		397,985
Jupiter Securization Corp.
2.99% - 3.02%, 05/19/05 - 06/03/05		540,769		539,690
Kitty Hawk Funding Corp.
2.88%, 05/04/05		101,160		101,144
Moat Funding LLC
2.74%, 05/02/05		93,772		93,772
Mortgage Interest Networking Trust
2.82% - 3.05%, 05/02/05 - 05/24/05		174,148		174,124
Nordea North America Inc.
2.74%, 07/11/05		66,980		66,623
Park Granada LLC
3.04%, 05/25/05 - 05/31/05		87,074		86,895
Ranger Funding Co. LLC
2.89% - 3.02%, 05/04/05 - 05/27/05		216,548		216,328
Santander Central Hispano
2.75%, 07/08/05		167,450		166,594
Scaldis Capital LLC
2.75% - 2.99%, 05/16/05 - 07/08/05		395,219		394,566
Societe Generale
2.75% - 2.79%, 05/02/05 - 05/03/05		462,162		462,137
Sydney Capital Corp.
2.81%, 05/04/05		44,207		44,200
Tulip Funding Corp.
2.80% - 3.02%, 05/03/05 - 07/01/05		368,390		368,228
UBS Finance (Delaware)
2.79%, 05/04/05		107,168		107,151
Windmill Funding Corp.
2.80%, 05/04/05		41,394		41,387

				7,959,022

FLOATING RATE NOTES³ – 2.56%
Allstate Life Global Funding II
2.91%, 03/08/06⁴		61,622		61,623
American Express Centurion Bank
2.98% - 3.04%, 10/26/05 - 01/24/06		468,860		468,925
Bank of Nova Scotia
2.80% - 2.94%, 09/26/05 - 01/03/06		87,074		87,057
Beta Finance Inc.
2.81% - 3.16%, 05/04/05 - 04/25/06⁴		514,406		514,430
BMW US Capital LLC
2.92%, 04/18/06⁴		133,960		133,960
Canadian Imperial Bank of Commerce
2.86% - 3.00%, 09/13/05 - 12/14/05		455,464		455,399


SCHEDULES OF INVESTMENTS		31

Schedule of Investments (Continued)

iSHARES^® DOW JONES U.S. CONSUMER GOODS SECTOR INDEX FUND

April 30, 2005


*Security*	*Principal*		*Value*
CC USA Inc.
2.81% - 3.12%, 05/04/05 - 03/23/06⁴	$	348,296	$	348,282
Commodore CDO Ltd.
3.08%, 12/12/05		33,490		33,490
Den Danske Bank NY
2.85% - 2.96%, 08/12/05 - 10/17/05		401,880		401,838
DEPFA Bank PLC
2.99%, 03/15/06		133,960		133,960
Dorada Finance Inc.
3.00% - 3.12%, 07/29/05 - 03/27/06⁴		290,693		290,708
Fairway Finance LLC
2.94%, 06/20/05		66,980		66,979
Fifth Third Bancorp
2.98%, 02/23/06⁴		267,920		267,920
Five Finance Inc.
3.01%, 02/27/06⁴		66,980		66,987
General Electric Capital Corp.
3.01%, 05/09/06		60,282		60,355
General Electric Commercial Equipment Financing LLC
2.95%, 11/20/05		38,539		38,539
Greenwich Capital Holdings Inc.
2.83%, 09/02/05		87,074		87,074
Hartford Life Global Funding Trust
2.94%, 04/15/06		133,960		133,960
HBOS Treasury Services PLC
2.87% - 3.08%, 01/10/06 - 04/24/06		401,880		401,880
K2 USA LLC
2.87% - 3.11%, 06/10/05 - 02/15/06⁴		602,820		602,830
Leafs LLC
2.99%, 01/20/06 - 02/21/06⁴		140,658		140,658
Links Finance LLC
2.92% - 3.15%, 11/16/05 - 02/06/06⁴		281,316		281,423
Lothian Mortgages PLC
3.01%, 01/24/06⁴		200,940		200,940
Marshall & Ilsley Corp.
3.09%, 02/20/06		133,960		134,089
MetLife Global Funding I
2.86%, 05/05/06⁴		200,940		200,940
National City Bank (Ohio)
2.84% - 2.95%, 06/10/05 - 08/09/05		334,900		334,885
Nationwide Building Society
2.89% - 3.12%, 01/13/06 - 04/28/06⁴		495,652		495,738
Norddeutsche Landesbank
3.11%, 07/27/05		133,960		133,949
Northern Rock PLC
2.88% - 2.99%, 10/25/05 - 02/03/06⁴		401,880		401,880
Permanent Financing PLC
2.87% - 2.89%, 06/10/05 - 03/10/06		475,558		475,558
Royal Bank of Scotland
2.79% - 2.91%, 06/20/05 - 04/05/06		181,851		181,794
Sedna Finance Inc.
2.92%, 01/10/06 - 01/17/06⁴		73,678		73,665
Sigma Finance Inc.
2.82% - 3.16%, 08/17/05 - 01/09/06⁴		683,196		683,217
Societe Generale
2.99%, 03/30/06		113,866		113,831
SunTrust Bank
3.17%, 04/28/06		200,940		200,940
Tango Finance Corp.
2.74% - 2.99%, 05/17/05 - 09/15/05⁴		363,031		363,022
Wachovia Asset Securitization Inc.
3.00% - 3.01%, 05/25/05		364,898		364,898
Wells Fargo & Co.
2.92%, 05/15/06⁴		66,980		66,988
WhistleJacket Capital LLC
2.86% - 2.97%, 06/15/05 - 01/17/06⁴		468,860		468,830


32		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® DOW JONES U.S. CONSUMER GOODS SECTOR INDEX FUND

April 30, 2005


*Security*	Shares or Principal		*Value*
White Pine Finance LLC
2.80% - 3.09%, 05/20/05 - 01/13/06⁴	$	574,688	$	574,651
Windmill Funding Corp.
2.78%, 05/03/05		93,772		93,765
Winston Funding Ltd.
3.22%, 07/23/05⁴		95,647		95,647
World Savings Bank
2.86%, 09/09/05		46,886		46,884

				10,784,388

MONEY MARKET FUNDS – 0.19%
Barclays Global Investors Funds Government Money Market Fund, Institutional Shares^3,5		535,840		535,840
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares⁵		202,524		202,524
BlackRock Temp Cash Money Market Fund³		19,405		19,405
Short-Term Investment Co. - Prime Money Market Portfolio, Institutional Shares³		54,275		54,275

				812,044

REPURCHASE AGREEMENTS³ – 1.45%
Bank of America N.A. Repurchase Agreement, dated 4/29/05, due 5/2/05, with a maturity value of $3,349,827 and an effective yield of 2.97%.⁶	$	3,348,998		3,348,998
Goldman Sachs & Co. Repurchase Agreements, dated 4/29/05, due 5/2/05, with a total maturity value of $1,628,913 and effective yields of 2.96% - 3.00%.⁶		1,628,510		1,628,510
Merrill Lynch Government Securities Inc. Repurchase Agreements, dated 4/29/05, due 5/2/05, with a total maturity value of $1,137,397 and effective yields of 2.96% - 3.00%.⁶		1,137,115		1,137,115

				6,114,623

*Security*	*Principal*		*Value*
TIME DEPOSITS³ – 0.95%
American Express Centurion Bank
3.00%, 05/25/05	$	334,900	$	334,900
Banco Bilbao Vizcaya Argentaria SA
3.03% - 3.18%, 06/27/05 - 09/14/05		194,242		194,242
BNP Paribas (New York)
2.78% - 3.03%, 07/11/05 - 08/23/05		187,544		187,544
Credit Suisse First Boston
2.75% - 2.81%, 05/03/05		174,148		174,148
Dexia Credit Local SA
2.81% - 3.01%, 05/04/05 - 06/21/05		261,222		261,223
First Tennessee Bank
3.00% - 3.04%, 06/14/05 - 06/27/05		234,430		234,430
HBOS Treasury Services PLC
3.39%, 12/14/05		80,376		80,376
Natexis Banques
2.98%, 08/18/05		133,960		133,960
Norddeutsche Landesbank
2.11%, 06/07/05		133,960		133,957
Societe Generale
2.81%, 05/03/05		93,772		93,772
SunTrust Bank
2.68%, 05/03/05		133,960		133,960
Svenska Handelsbanken AB
3.00%, 06/20/05		66,980		66,980
Toronto-Dominion Bank
1.77% - 3.18%, 05/10/05 - 11/09/05		408,578		408,569
UBS AG
2.67% - 3.40%, 11/09/05 - 12/15/05		107,168		107,167
Washington Mutual Bank
2.81% - 3.15%, 05/02/05 - 07/28/05		864,042		864,042
Wells Fargo Bank N.A.
3.04%, 06/29/05		401,880		401,880


SCHEDULES OF INVESTMENTS		33

Schedule of Investments (Continued)

iSHARES^® DOW JONES U.S. CONSUMER GOODS SECTOR INDEX FUND

April 30, 2005


*Security*	*Principal*		*Value*
World Savings Bank
2.75%, 05/03/05	$	187,544	$	187,544

				3,998,694

U.S. GOVERNMENT AGENCY NOTES³ – 0.07%
Federal Home Loan Mortgage Corp.
2.06%, 05/31/05		66,783		66,672
Federal National Mortgage Association
2.33%, 07/22/05		200,940		199,889

				266,561

TOTAL SHORT-TERM INVESTMENTS (Cost: $29,935,332)				29,935,332

TOTAL INVESTMENTS IN SECURITIES – 106.96% (Cost: $453,198,495)				450,412,276
Other Assets, Less Liabilities – (6.96%)				(29,308,227	)

NET ASSETS – 100.00%			$	421,104,049

NVS - Non-Voting Shares

¹	All or a portion of this security represents a security on loan. See Note 5.

²	Non-income earning security.

³	All or a portion of this security (these securities) represent(s) an investment of securities lending collateral. See Note 5.

⁴	All or a portion of this security is 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	The Fund’s investment adviser is an affiliate of the issuer. See Note 2.

⁶	Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 3.12% to 7.13% and maturity dates ranging from 5/25/05 to 8/1/42.

See notes to financial statements.


34		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® DOW JONES U.S. CONSUMER SERVICES SECTOR INDEX FUND

April 30, 2005


*Security*	*Shares*	*Value*
COMMON STOCKS – 99.99%

ADVERTISING – 2.02%
ADVO Inc.	4,653	$	134,053
Catalina Marketing Corp.¹	7,447		173,143
Donnelley (R.H.) Corp.²	4,837		275,467
Getty Images Inc.^1,2	7,186		514,158
Harte-Hanks Inc.	7,923		225,805
Interpublic Group of Companies Inc.^1,2	65,108		837,289
Lamar Advertising Co.²	13,116		490,276
Omnicom Group Inc.	28,793		2,386,940
ValueVision Media Inc. Class A^1,2	3,933		38,937

			5,076,068

AIRLINES – 1.11%
AirTran Holdings Inc.^1,2	12,989		107,809
Alaska Air Group Inc.²	3,929		104,786
AMR Corp.^1,2	22,951		240,297
Continental Airlines Inc. Class B^1,2	10,403		123,172
Delta Air Lines Inc.^1,2	19,478		64,083
JetBlue Airways Corp.^1,2	14,880		298,344
Northwest Airlines Corp.^1,2	12,318		63,807
SkyWest Inc.	8,850		160,008
Southwest Airlines Co.	108,766		1,618,438

			2,780,744

COMMERCIAL SERVICES – 5.03%
ADESA Inc.	14,067		340,281
Apollo Group Inc. Class A²	23,260		1,677,511
ARAMARK Corp. Class B	16,735		410,175
Arbitron Inc.	4,815		203,771
Block (H & R) Inc.	23,721		1,181,543
Career Education Corp.²	15,745		495,023
Cendant Corp.	161,849		3,222,414
Chemed Corp.	1,890		133,888
Corinthian Colleges Inc.^1,2	13,750		195,387
DeVry Inc.^1,2	9,520		217,056
Education Management Corp.²	9,266		259,448
Interactive Data Corp.²	5,381		107,889
ITT Educational Services Inc.²	7,009		322,274
Laureate Education Inc.²	6,878		305,521
McKesson Corp.	42,359		1,567,283
Pre-Paid Legal Services Inc.¹	2,221		79,312
Rent-A-Center Inc.²	10,644		255,882
Service Corp. International	51,751		364,327
ServiceMaster Co. (The)	44,716		573,706
Sotheby’s Holdings Inc. Class A^1,2	6,929		113,497
Stewart Enterprises Inc. Class A	14,583		78,748
Strayer Education Inc.¹	2,267		243,204
Valassis Communications Inc.^1,2	8,032		283,128

			12,631,268

COMPUTERS – 0.06%
FactSet Research Systems Inc.¹	5,638		156,511

			156,511

DISTRIBUTION & WHOLESALE – 0.43%
CDW Corp.¹	9,996		546,681
Fastenal Co.¹	10,097		540,795

			1,087,476

ENTERTAINMENT – 1.38%
Alliance Gaming Corp.^1,2	7,106		81,008
Argosy Gaming Co.²	4,271		196,210
DreamWorks Animation SKG Inc. Class A²	4,499		168,712
Gaylord Entertainment Co.²	6,052		242,080
GTECH Holdings Corp.	18,081		442,442
International Game Technology Inc.	53,749		1,445,311
International Speedway Corp. Class A	4,444		236,421
Penn National Gaming Inc.²	9,641		303,691
Pinnacle Entertainment Inc.²	6,209		94,128
Scientific Games Corp. Class A^1,2	10,146		217,835
Six Flags Inc.²	11,814		46,075

			3,473,913

FOOD – 3.71%
Albertson’s Inc.¹	49,102		971,729
Kroger Co.²	104,531		1,648,454
Performance Food Group Co.^1,2	7,232		194,468
Safeway Inc.²	68,675		1,462,091
SUPERVALU Inc.	20,853		658,121
Sysco Corp.	98,291		3,400,869
Whole Foods Market Inc.	9,486		945,944
Wild Oats Markets Inc.^1,2	3,848		38,865

			9,320,541


SCHEDULES OF INVESTMENTS		35

Schedule of Investments (Continued)

iSHARES^® DOW JONES U.S. CONSUMER SERVICES SECTOR INDEX FUND

April 30, 2005


*Security*	*Shares*	*Value*
HOUSEHOLD PRODUCTS & WARES – 0.09%
American Greetings Corp. Class A	9,891	$	224,031

			224,031

INTERNET – 3.38%
Amazon.com Inc.²	45,402		1,469,209
CNET Networks Inc.²	20,225		200,531
DoubleClick Inc.²	18,065		145,243
eBay Inc.²	152,745		4,846,599
IAC/InterActiveCorp^1,2	77,558		1,686,111
NetFlix Inc.^1,2	4,028		46,564
Priceline.com Inc.^1,2	3,664		92,919

			8,487,176

LEISURE TIME – 1.74%
Bally Total Fitness Holding Corp.^1,2	5,134		16,326
Carnival Corp.	65,524		3,202,813
Multimedia Games Inc.^1,2	4,231		33,467
Royal Caribbean Cruises Ltd.	15,037		631,855
Sabre Holdings Corp.	21,030		411,347
WMS Industries Inc.^1,2	3,080		78,232

			4,374,040

LODGING – 3.53%
Aztar Corp.²	5,249		143,350
Boyd Gaming Corp.¹	7,100		374,738
Caesars Entertainment Inc.²	41,518		828,284
Harrah’s Entertainment Inc.	17,231		1,130,698
Hilton Hotels Corp.	55,704		1,216,018
Marriott International Inc. Class A	28,237		1,771,872
MGM Mirage²	9,086		634,294
Starwood Hotels & Resorts Worldwide Inc.	32,020		1,739,967
Station Casinos Inc.	7,393		477,070
Wynn Resorts Ltd.^1,2	10,567		559,417

			8,875,708

MANUFACTURING – 0.07%
Matthews International Corp. Class A	4,881		173,812

			173,812

MEDIA – 28.78%
Belo (A.H.) Corp.	14,996		351,356
Cablevision Systems Corp.²	28,948		751,201
Charter Communications Inc. Class A^1,2	39,881		46,262
Clear Channel Communications Inc.	82,687		2,641,023
Comcast Corp. Class A²	193,652		6,218,166
Comcast Corp. Class A Special²	129,560		4,110,939
Cox Radio Inc. Class A²	5,828		91,616
Cumulus Media Inc. Class A²	8,274		107,397
Dex Media Inc.	17,119		374,906
DIRECTV Group Inc. (The)²	140,574		1,984,905
Dow Jones & Co. Inc.¹	7,021		234,782
EchoStar Communications Corp.	33,241		962,327
Emmis Communications Corp.^1,2	7,648		118,009
Entercom Communications Corp.²	7,565		243,820
Gannett Co. Inc.	39,241		3,021,557
Gemstar-TV Guide International Inc.²	37,787		145,480
Hearst-Argyle Television Inc.	4,056		101,806
Hollinger International Inc.	7,301		68,994
Insight Communications Co. Inc.^1,2	7,727		86,620
Knight Ridder Inc.¹	11,824		765,013
Lee Enterprises Inc.	5,474		227,226
Liberty Media Corp. Class A	395,923		3,975,067
Liberty Media International Inc. Class A²	23,579		977,821
McClatchy Co. (The) Class A	3,089		218,392
McGraw-Hill Companies Inc. (The)	29,429		2,562,677
Media General Inc. Class A	3,152		193,155
Meredith Corp.	6,174		290,178
New York Times Co. Class A¹	22,525		751,434
News Corp. Class A	302,781		4,626,494
News Corp. Class B¹	85,259		1,357,323
Radio One Inc. Class D²	9,835		128,543
Readers Digest Association Inc. (The)	13,419		228,123
Scholastic Corp.^1,2	4,259		148,426
Scripps (E.W.) Co. Class A	12,457		634,435
Sinclair Broadcast Group Inc. Class A	7,187		55,052
Sirius Satellite Radio Inc.^1,2	176,697		841,078
Time Warner Inc.²	678,178		11,400,172
Tribune Co.	32,427		1,251,682
UnitedGlobalCom Inc. Class A²	56,121		502,283
Univision Communications Inc. Class A^1,2	39,269		1,032,382
Viacom Inc. Class A	5,924		206,037
Viacom Inc. Class B	225,637		7,811,553


36		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® DOW JONES U.S. CONSUMER SERVICES SECTOR INDEX FUND

April 30, 2005


*Security*	*Shares*	*Value*
Walt Disney Co. (The)	314,934	$	8,314,258
Washington Post Co. (The) Class B	937		809,802
Westwood One Inc.²	11,860		217,038
Wiley (John) & Sons Inc. Class A	6,016		217,539
XM Satellite Radio Holdings Inc. Class A^1,2	31,528		874,587
Young Broadcasting Inc. Class A²	2,699		20,296

			72,299,232

PHARMACEUTICALS – 2.50%
Accredo Health Inc.²	7,487		339,161
AmerisourceBergen Corp.	17,313		1,060,941
Andrx Corp.^1,2	11,319		225,361
Cardinal Health Inc.	66,156		3,676,289
Omnicare Inc.	16,011		555,101
Priority Healthcare Corp. Class B²	5,610		127,796
VCA Antech Inc.^1,2	12,549		292,141

			6,276,790

RETAIL – 45.24%
Abercrombie & Fitch Co. Class A	13,358		720,664
Advance Auto Parts Inc.²	11,380		607,123
Aeropostale Inc.²	8,648		241,539
American Eagle Outfitters Inc.	18,373		481,740
AnnTaylor Stores Corp.²	10,721		262,557
Applebee’s International Inc.	12,619		312,699
AutoNation Inc.²	30,207		551,882
AutoZone Inc.^1,2	9,943		825,269
Barnes & Noble Inc.²	8,677		308,901
Bed Bath & Beyond Inc.²	46,292		1,722,525
Best Buy Co. Inc.	40,713		2,049,492
Big Lots Inc.^1,2	17,523		178,384
BJ’s Wholesale Club Inc.^1,2	10,674		284,462
Bob Evans Farms Inc.¹	5,372		109,589
Borders Group Inc.	11,886		287,522
Brinker International Inc.²	13,558		458,260
CarMax Inc.²	16,005		436,616
Casey’s General Store Inc.¹	7,125		120,270
Cato Corp. Class A	3,070		78,899
CBRL Group Inc.	7,466		287,665
CEC Entertainment Inc.^1,2	5,573		201,743
Charming Shoppes Inc.²	16,530		122,983
Cheesecake Factory (The)^1,2	11,982		367,728
Chico’s FAS Inc.^1,2	27,380		701,749
Children’s Place Retail Stores Inc. (The)^1,2	2,132		79,332
Christopher & Banks Corp.¹	5,698		89,003
Circuit City Stores Inc.	29,307		463,051
Claire’s Stores Inc.	12,562		274,103
Copart Inc.^1,2	10,396		225,385
Cost Plus Inc.^1,2	3,311		76,782
Costco Wholesale Corp.	70,900		2,877,122
CVS Corp.	61,077		3,150,352
Darden Restaurants Inc.	22,655		679,650
Dillard’s Inc. Class A¹	10,762		250,432
Dollar General Corp.	46,894		954,293
Dollar Tree Stores Inc.^1,2	17,733		434,281
Dress Barn Inc.²	3,301		56,777
Family Dollar Stores Inc.	24,335		656,558
Federated Department Stores Inc.	26,568		1,527,660
Foot Locker Inc.	23,958		638,720
Fred’s Inc.¹	5,575		80,503
GameStop Corp. Class B²	4,438		103,583
Gap Inc. (The)	98,293		2,098,556
Guitar Center Inc.^1,2	3,841		189,553
Home Depot Inc.	337,757		11,946,465
Hot Topic Inc.^1,2	6,953		138,990
IHOP Corp.¹	3,068		125,481
Jack in the Box Inc.²	5,556		203,127
Kohl’s Corp.²	46,638		2,219,969
Krispy Kreme Doughnuts Inc.^1,2	8,741		51,747
Limited Brands Inc.	52,612		1,141,154
Linens ‘n Things Inc.^1,2	6,855		159,927
Lone Star Steakhouse & Saloon Inc.	2,767		78,444
Longs Drug Stores Corp.¹	4,604		167,355
Lowe’s Companies Inc.¹	109,580		5,710,214
May Department Stores Co. (The)	44,835		1,572,812
McDonald’s Corp.	193,413		5,668,935
Men’s Wearhouse Inc. (The)^1,2	5,086		209,899
Michaels Stores Inc.	20,794		690,361
Neiman-Marcus Group Inc. Class A	4,505		442,932
99 Cents Only Stores^1,2	7,405		82,047
Nordstrom Inc.	18,268		928,562
Office Depot Inc.²	47,942		938,704


SCHEDULES OF INVESTMENTS		37

Schedule of Investments (Continued)

iSHARES^® DOW JONES U.S. CONSUMER SERVICES SECTOR INDEX FUND

April 30, 2005


*Security*	*Shares*		*Value*
OfficeMax Inc.		13,489	$	438,123
O’Reilly Automotive Inc.^1,2		8,444		433,346
Outback Steakhouse Inc.¹		11,315		457,126
P.F. Chang’s China Bistro Inc.^1,2		3,677		204,147
Pacific Sunwear of California Inc.²		11,749		265,645
Panera Bread Co. Class A²		4,392		219,688
Papa John’s International Inc.^1,2		1,827		62,630
Payless ShoeSource Inc.²		10,346		141,326
Penney (J.C.) Co. Inc. (Holding Co.)		38,987		1,848,374
Pep Boys-Manny, Moe & Jack Inc.¹		8,797		124,741
PETCO Animal Supplies Inc.²		6,320		197,816
PETsMART Inc.		22,168		590,777
Pier 1 Imports Inc.¹		12,070		175,256
RadioShack Corp.		24,666		615,910
Regis Corp.		6,876		245,679
Rite Aid Corp.²		69,057		250,677
Ross Stores Inc.		23,240		620,973
Ruby Tuesday Inc.¹		9,749		219,352
Ryan’s Restaurant Group Inc.²		6,319		80,125
Saks Inc.²		19,274		328,429
Sears Holdings Corp.²		14,112		1,908,507
ShopKo Stores Inc.²		4,428		106,095
Sonic Corp.^1,2		9,059		290,250
Sports Authority Inc. (The)^1,2		3,405		90,573
Staples Inc.		114,733		2,187,958
Starbucks Corp.²		61,107		3,026,019
Stein Mart Inc.²		4,038		81,810
Talbots Inc. (The)		3,586		91,622
Target Corp.		127,317		5,908,782
Tiffany & Co.		22,406		675,541
TJX Companies Inc.		77,416		1,753,472
Toys R Us Inc.²		32,986		836,195
Tractor Supply Co.²		5,463		219,722
Triarc Companies Inc. Class B¹		2,885		37,043
Tuesday Morning Corp.^1,2		4,028		105,775
Urban Outfitters Inc.^1,2		8,816		390,549
Walgreen Co.		157,613		6,786,816
Wal-Mart Stores Inc.		402,250		18,962,065
Wendy’s International Inc.¹		17,420		747,841
Williams-Sonoma Inc.²		14,376		481,452
Yum! Brands Inc.		45,048		2,115,454

*Security*	Shares or Principal		*Value*
Zale Corp. ²		7,892	$	213,321

				113,640,084

SOFTWARE – 0.64%
Avid Technology Inc.²		5,205		257,700
Dun & Bradstreet Corp.²		10,789		673,665
NAVTEQ Corp.²		8,808		320,787
Pixar Inc.²		7,574		346,435

				1,598,587

TELECOMMUNICATIONS – 0.28%
Telewest Global Inc.²		37,589		696,900

				696,900

TOTAL COMMON STOCKS (Cost: $281,228,899)				251,172,881

SHORT-TERM INVESTMENTS – 8.46%

COMMERCIAL PAPER³ – 2.22%
Alpine Securitization Corp.
2.80%, 05/04/05	$	268,543		268,502
Amstel Funding Corp.
2.95%, 08/19/05		39,029		38,680
Amsterdam Funding Corp.
2.80% - 3.02%, 05/04/05 - 05/27/05		106,103		105,995
ANZ National Bank Ltd.
2.94%, 08/15/05		46,948		46,546
Blue Ridge Asset Funding Corp.
3.02%, 06/02/05		140,844		140,479
Bryant Park Funding LLC
2.75%, 05/03/05		18,779		18,778
Cancara Asset Securitisation LLC
2.80% - 2.97%, 05/03/05 - 05/23/05		311,406		311,328
Cantabric Finance LLC
3.04% - 3.12%, 06/28/05 - 07/25/05		117,370		116,604
Chariot Funding LLC
2.99%, 05/20/05		22,325		22,291
Charta LLC
2.99%, 06/16/05 - 06/21/05		197,182		196,403
Chesham Finance LLC
2.89% - 3.01%, 05/10/05 - 06/21/05		333,332		332,926


38		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^{^®}DOW JONES U.S. CONSUMER SERVICES SECTOR INDEX FUND

April 30, 2005


*Security*	*Principal*		*Value*
Corporate Asset Funding
2.75% - 2.99%, 05/05/05 - 06/16/05	$	173,708	$	173,290
CRC Funding LLC
2.95% - 3.00%, 05/02/05 - 06/29/05		164,319		164,053
DEPFA Bank PLC
2.28%, 05/03/05		46,948		46,945
Deutsche Bank Financial LLC
2.80%, 05/03/05		281,689		281,667
Edison Asset Securitization
2.26% - 3.12%, 05/03/05 - 09/06/05		319,247		318,448
Fairway Finance LLC
3.15%, 09/15/05		83,525		82,532
Falcon Asset Securitization Corp.
2.79% - 3.02%, 05/03/05 - 06/01/05		188,118		187,895
Ford Credit Auto Receivables
2.74%, 05/04/05		46,009		46,002
Fortis Funding LLC
2.35%, 05/09/05		131,455		131,395
Gemini Securitization Corp.
3.02%, 06/27/05		9,390		9,346
General Electric Capital Corp.
2.74%, 07/07/05		46,948		46,712
Georgetown Funding Co. LLC
2.81% - 3.05%, 05/03/05 - 06/16/05		206,572		206,291
Grampian Funding LLC
3.00% - 3.13%, 08/22/05 - 09/09/05		281,689		278,958
Jupiter Securization Corp.
2.99% - 3.02%, 05/19/05 - 06/03/05		379,041		378,291
Kitty Hawk Funding Corp.
2.88%, 05/04/05		70,906		70,894
Moat Funding LLC
2.74%, 05/02/05		65,727		65,727
Mortgage Interest Networking Trust
2.82% - 3.05%, 05/02/05 - 05/24/05		122,065		122,048
Nordea North America Inc.
2.74%, 07/11/05		46,948		46,698
Park Granada LLC
3.04%, 05/25/05 - 05/31/05		61,033		60,907
Ranger Funding Co. LLC
2.89% - 3.02%, 05/04/05 - 05/27/05		151,784		151,630
Santander Central Hispano
2.75%, 07/08/05		117,370		116,771
Scaldis Capital LLC
2.75% - 2.99%, 05/16/05 - 07/08/05		277,020		276,562
Societe Generale
2.75% - 2.79%, 05/02/05 - 05/03/05		323,942		323,925
Sydney Capital Corp.
2.81%, 05/04/05		30,986		30,981
Tulip Funding Corp.
2.80% - 3.02%, 05/03/05 - 07/01/05		258,215		258,102
UBS Finance (Delaware)
2.79%, 05/04/05		75,117		75,105
Windmill Funding Corp.
2.80%, 05/04/05		29,014		29,009

				5,578,716

FLOATING RATE NOTES³ – 3.01%
Allstate Life Global Funding II
2.91%, 03/08/06⁴		43,192		43,194
American Express Centurion Bank
2.98% - 3.04%, 10/26/05 - 01/24/06		328,637		328,682
Bank of Nova Scotia
2.80% - 2.94%, 09/26/05 - 01/03/06		61,033		61,021
Beta Finance Inc.
2.81% - 3.16%, 05/04/05 - 04/25/06⁴		360,562		360,578
BMW US Capital LLC
2.92%, 04/18/06⁴		93,896		93,896
Canadian Imperial Bank of Commerce
2.86% - 3.00%, 09/13/05 - 12/14/05		319,247		319,202


SCHEDULES OF INVESTMENTS		39

Schedule of Investments (Continued)

iSHARES^{^®}DOW JONES U.S. CONSUMER SERVICES SECTOR INDEX FUND

April 30, 2005


*Security*	*Principal*		*Value*
CC USA Inc.
2.81% - 3.12%, 05/04/05 - 03/23/06⁴	$	244,130	$	244,121
Commodore CDO Ltd.
3.08%, 12/12/05		23,474		23,474
Den Danske Bank NY
2.85% - 2.96%, 08/12/05 - 10/17/05		281,689		281,658
DEPFA Bank PLC
2.99%, 03/15/06		93,896		93,896
Dorada Finance Inc.
3.00% - 3.12%, 07/29/05 - 03/27/06⁴		203,755		203,764
Fairway Finance LLC
2.94%, 06/20/05		46,948		46,948
Fifth Third Bancorp
2.98%, 02/23/06⁴		187,793		187,793
Five Finance Inc.
3.01%, 02/27/06⁴		46,948		46,953
General Electric Capital Corp.
3.01%, 05/09/06		42,253		42,304
General Electric Commercial Equipment Financing LLC
2.95%, 11/20/05		27,013		27,013
Greenwich Capital Holdings Inc.
2.83%, 09/02/05		61,033		61,033
Hartford Life Global Funding Trust
2.94%, 04/15/06		93,896		93,896
HBOS Treasury Services PLC
2.87% - 3.08%, 01/10/06 - 04/24/06		281,689		281,688
K2 USA LLC
2.87% - 3.11%, 06/10/05 - 02/15/06⁴		422,533		422,542
Leafs LLC
2.99%, 01/20/06 - 02/21/06⁴		98,591		98,591
Links Finance LLC
2.92% - 3.15%, 11/16/05 - 02/06/06⁴		197,182		197,257
Lothian Mortgages PLC
3.01%, 01/24/06⁴		140,844		140,844
Marshall & Ilsley Corp.
3.09%, 02/20/06		93,896		93,987
MetLife Global Funding I
2.86%, 05/05/06⁴		140,844		140,844
National City Bank (Ohio)
2.84% - 2.95%, 06/10/05 - 08/09/05		234,741		234,732
Nationwide Building Society
2.89% - 3.12%, 01/13/06 - 04/28/06⁴		347,416		347,477
Norddeutsche Landesbank
3.11%, 07/27/05		93,896		93,889
Northern Rock PLC
2.88% - 2.99%, 10/25/05 - 02/03/06⁴		281,689		281,689
Permanent Financing PLC
2.87% - 2.89%, 06/10/05 - 03/10/06		333,332		333,331
Royal Bank of Scotland
2.79% - 2.91%, 06/20/05 - 04/05/06		127,464		127,425
Sedna Finance Inc.
2.92%, 01/10/06 - 01/17/06⁴		51,643		51,633
Sigma Finance Inc.
2.82% - 3.16%, 08/17/05 - 01/09/06⁴		478,871		478,885
Societe Generale
2.99%, 03/30/06		79,812		79,787
SunTrust Bank
3.17%, 04/28/06		140,844		140,844
Tango Finance Corp.
2.74% - 2.99%, 05/17/05 - 09/15/05⁴		254,459		254,452
Wachovia Asset Securitization Inc.
3.00% - 3.01%, 05/25/05		255,767		255,768
Wells Fargo & Co.
2.92%, 05/15/06⁴		46,948		46,954
WhistleJacket Capital LLC
2.86% - 2.97%, 06/15/05 - 01/17/06⁴		328,637		328,615


40		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® DOW JONES U.S. CONSUMER SERVICES SECTOR INDEX FUND

April 30, 2005


*Security*	Shares or Principal		*Value*
White Pine Finance LLC
2.80% - 3.09%,05/20/05 - 01/13/06⁴	$	402,815	$	402,787
Windmill Funding Corp.
2.78%, 05/03/05		65,727		65,722
Winston Funding Ltd.
3.22%, 07/23/05⁴		67,042		67,042
World Savings Bank
2.86%, 09/09/05		32,864		32,863

				7,559,074

MONEY MARKET FUNDS – 0.34%
Barclays Global Investors Funds Government Money Market Fund, Institutional Shares^3,5		375,585		375,585
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares⁵		422,727		422,727
BlackRock Temp Cash Money Market Fund³		13,602		13,602
Short-Term Investment Co. - Prime Money Market Portfolio, Institutional Shares³		38,043		38,043

				849,957

REPURCHASE AGREEMENTS³ – 1.71%
Bank of America N.A. Repurchase Agreement, dated 4/29/05, due 5/2/05, with a maturity value of $2,347,989 and an effective yield of 2.97%.⁶	$	2,347,408		2,347,408
Goldman Sachs & Co. Repurchase Agreements, dated 4/29/05, due 5/2/05, with a total maturity value of $1,141,751 and effective yields of 2.96% - 3.00%.⁶		1,141,469		1,141,469
Merrill Lynch Government Securities Inc. Repurchase Agreements, dated 4/29/05, due 5/2/05, with a total maturity value of $ 797,234 and effective yields of 2.96% - 3.00%.⁶		797,036		797,036

				4,285,913

*Security*	*Principal*		*Value*
TIME DEPOSITS³ – 1.11%
American Express Centurion Bank
3.00%, 05/25/05	$	234,741	$	234,741
Banco Bilbao Vizcaya Argentaria SA
3.03% - 3.18%, 06/27/05 - 09/14/05		136,150		136,149
BNP Paribas (New York)
2.78% - 3.03%, 07/11/05 - 08/23/05		131,455		131,455
Credit Suisse First Boston
2.75% - 2.81%, 05/03/05		122,065		122,065
Dexia Credit Local SA
2.81% - 3.01%, 05/04/05 - 06/21/05		183,098		183,098
First Tennessee Bank
3.00% - 3.04%, 06/14/05 - 06/27/05		164,319		164,318
HBOS Treasury Services PLC
3.39%, 12/14/05		56,338		56,338
Natexis Banques
2.98%, 08/18/05		93,896		93,896
Norddeutsche Landesbank
2.11%, 06/07/05		93,896		93,894
Societe Generale
2.81%, 05/03/05		65,727		65,727
SunTrust Bank
2.68%, 05/03/05		93,896		93,896
Svenska Handelsbanken AB
3.00%, 06/20/05		46,948		46,948
Toronto-Dominion Bank
1.77% - 3.18%, 05/10/05 - 11/09/05		286,384		286,377
UBS AG
2.67% - 3.40%, 11/09/05 - 12/15/05		75,117		75,117
Washington Mutual Bank
2.81% - 3.15%, 05/02/05 - 07/28/05		605,631		605,631
Wells Fargo Bank N.A.
3.04%, 06/29/05		281,689		281,689


SCHEDULES OF INVESTMENTS		41

Schedule of Investments (Continued)

iSHARES^® DOW JONES U.S. CONSUMER SERVICES SECTOR INDEX FUND

April 30, 2005


*Security*	*Principal*		*Value*
World Savings Bank
2.75%, 05/03/05	$	131,455	$	131,455

				2,802,794

U.S. GOVERNMENT AGENCY NOTES³ – 0.07%
Federal Home Loan Mortgage Corp.
2.06%, 05/31/05		46,810		46,732
Federal National Mortgage Association
2.33%, 07/22/05		140,844		140,108

				186,840

TOTAL SHORT-TERM INVESTMENTS (Cost: $21,263,294)				21,263,294

TOTAL INVESTMENTS IN SECURITIES – 108.45% (Cost: $302,492,193)				272,436,175
Other Assets, Less Liabilities – (8.45%)				(21,224,292	)

NET ASSETS – 100.00%			$	251,211,883

¹	All or a portion of this security represents a security on loan. See Note 5.

²	Non-income earning security.

³	All or a portion of this security (these securities) represent(s) an investment of securities lending collateral. See Note 5.

⁴	All or a portion of this security is 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	The Fund’s investment adviser is an affiliate of the issuer. See Note 2.

⁶	Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 3.12% to 7.13% and maturity dates ranging from 5/25/05 to 8/1/42.

See notes to financial statements.


42		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

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

April 30, 2005


*Security*	*Shares*	*Value*
COMMON STOCKS – 99.81%

BANKS – 31.21%
AMCORE Financial Inc.	2,804	$	72,231
AmSouth Bancorp	41,505		1,092,412
Associated Bancorp¹	14,120		436,590
Assurant Inc.	13,688		452,936
BancorpSouth Inc.	8,416		178,167
Bank of America Corp.	475,224		21,404,089
Bank of Hawaii Corp.	6,156		291,487
Bank of New York Co. Inc. (The)	91,442		2,554,889
BB&T Corp.¹	65,260		2,558,845
Cathay General Bancorp	5,068		166,585
Chittenden Corp.¹	5,538		139,059
Citizens Banking Corp.¹	4,408		118,178
City National Corp.	5,328		375,624
Colonial BancGroup Inc. (The)	15,643		345,085
Comerica Inc.	20,111		1,151,556
Commerce Bancorp Inc.¹	18,604		520,726
Commerce Bancshares Inc.¹	7,998		385,424
Compass Bancshares Inc.	14,410		619,918
Cullen/Frost Bankers Inc.	6,144		266,158
East West Bancorp Inc.	5,887		189,090
Fifth Third Bancorp	59,200		2,575,200
First BanCorp (Puerto Rico)	4,357		157,985
First Horizon National Corp.	14,481		601,396
First Marblehead Corp. (The)^1,2	3,847		148,225
First Midwest Bancorp Inc.	5,432		177,409
FirstMerit Corp.¹	8,648		212,135
FNB Corp. (Pennsylvania)¹	6,038		114,420
Fremont General Corp.	7,945		172,327
Fulton Financial Corp.¹	15,015		313,063
Genworth Financial Inc. Class A	26,488		740,340
Greater Bay Bancorp¹	6,082		153,023
Hibernia Corp. Class A	18,218		568,948
Hudson United Bancorp	5,362		183,702
Huntington Bancshares Inc.	25,625		602,444
Investors Financial Services Corp.¹	7,766		325,784
KeyCorp¹	47,945		1,589,856
M&T Bank Corp.	9,816		1,015,465
Marshall & Ilsley Corp.	22,546		961,361
Mellon Financial Corp.¹	49,986		1,384,112
Mercantile Bankshares Corp.	9,271		471,060
National City Corp.	66,766		2,267,373
North Fork Bancorp Inc.	51,445		1,448,177
Northern Trust Corp.	22,827		1,027,900
Old National Bancorp¹	8,077		154,190
Pacific Capital Bancorp	5,211		150,233
Park National Corp.¹	1,352		135,876
PNC Financial Services Group	33,272		1,771,069
Popular Inc.	28,655		663,077
Provident Bankshares Corp.	3,899		114,163
Regions Financial Corp.	54,448		1,823,464
Republic Bancorp Inc.¹	8,496		107,729
Silicon Valley Bancshares^1,2	4,166		197,468
Sky Financial Group Inc.	12,452		324,997
South Financial Group Inc. (The)	8,432		222,520
Southwest Bancorp of Texas Inc.	7,780		129,148
State Street Corp.	39,621		1,831,679
Sterling Bancshares Inc.	5,415		72,723
SunTrust Banks Inc.¹	42,185		3,072,334
Susquehanna Bancshares Inc.	5,419		113,962
Synovus Financial Corp.	30,263		848,272
TCF Financial Corp.¹	15,364		388,556
TD Banknorth Inc.²	10,886		335,289
Texas Regional Bancshares Inc. Class A¹	5,366		149,550
TrustCo Bank Corp. NY¹	8,889		97,868
Trustmark Corp.	6,081		167,349
U.S. Bancorp	219,574		6,126,115
UCBH Holdings Inc.	10,828		170,324
UnionBanCal Corp.	6,770		416,761
United Bancshares Inc.	4,886		149,609
Valley National Bancorp¹	11,552		286,374
W Holding Co. Inc.	15,703		127,037
Wachovia Corp.	186,866		9,563,802
Wells Fargo & Co.	199,077		11,932,675
Westamerica Bancorp¹	3,764		187,974
Whitney Holding Corp.	4,841		219,152
Wilmington Trust Corp.¹	7,770		274,669
Zions Bancorporation	10,517		736,506

			93,593,268


SCHEDULES OF INVESTMENTS		43

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	*Shares*	*Value*
COMMERCIAL SERVICES – 0.65%
Equifax Inc.	15,969	$	537,357
MoneyGram International Inc.¹	10,603		205,698
Moody’s Corp.	14,746		1,211,236

			1,954,291

DIVERSIFIED FINANCIAL SERVICES – 34.33%
Affiliated Managers Group Inc.^1,2	3,503		219,043
American Express Co.	130,819		6,894,161
AmeriCredit Corp.^1,2	18,411		430,817
Ameritrade Holding Corp.²	33,471		350,776
Bear Stearns Companies Inc. (The)	12,095		1,144,913
Capital One Financial Corp.	28,748		2,037,946
CapitalSource Inc.^1,2	7,856		164,976
Chicago Mercantile Exchange Holdings Inc.¹	3,197		625,077
CIT Group Inc.	24,733		996,245
Citigroup Inc.	610,572		28,672,461
Countrywide Financial Corp.	66,328		2,400,410
Doral Financial Corp.	11,012		154,719
E*TRADE Financial Corp.²	42,984		477,552
Eaton Vance Corp.	15,813		370,499
Edwards (A.G.) Inc.¹	9,285		368,707
Federal Home Loan Mortgage Corp.	80,983		4,982,074
Federal National Mortgage Association	113,823		6,140,751
Federated Investors Inc. Class B	11,221		319,237
Franklin Resources Inc.¹	16,460		1,130,473
Friedman, Billings, Ramsey Group Inc. Class A¹	16,710		202,024
Goldman Sachs Group Inc. (The)	48,463		5,175,364
IndyMac Bancorp Inc.¹	7,150		275,132
Investment Technology Group Inc.²	4,883		92,826
Janus Capital Group Inc.	28,048		364,344
Jefferies Group Inc.¹	5,757		208,403
JP Morgan Chase & Co.	419,163		14,876,095
Knight Trading Group Inc.²	13,750		115,912
LaBranche & Co. Inc.²	6,529		43,418
Legg Mason Inc.	12,352		875,263
Lehman Brothers Holdings Inc.	32,523		2,983,010
MBNA Corp.	133,038		2,627,501
Merrill Lynch & Co. Inc.	100,397		5,414,410
Morgan Stanley	116,631		6,137,123
Piper Jaffray Companies Inc.²	2,345		64,839
Providian Financial Corp.²	34,324		572,181
Raymond James Financial Inc.	6,976		188,143
Schwab (Charles) Corp. (The)	131,173		1,357,641
SLM Corp.	50,522		2,406,868
SWS Group Inc.	1,902		27,769
T. Rowe Price Group Inc.	15,206		838,915
W.P. Stewart & Co. Ltd.¹	2,526		55,774
Waddell & Reed Financial Inc. Class A¹	9,825		171,053

			102,954,845

INSURANCE – 20.26%
ACE Ltd.	33,506		1,439,418
AFLAC Inc.	59,741		2,428,472
Allmerica Financial Corp.²	6,226		209,007
Allstate Corp. (The)	81,507		4,577,433
Ambac Financial Group Inc.	12,725		850,666
American Financial Group Inc.	4,486		139,470
American International Group Inc.	269,280		13,692,888
American National Insurance Co.	1,839		188,681
AmerUs Group Co.¹	4,665		219,302
AON Corp.	30,558		637,134
Axis Capital Holdings Ltd.	9,998		265,947
Berkley (W.R.) Corp.	12,829		416,943
Brown & Brown Inc.	6,659		291,331
Chubb Corp.	22,506		1,840,541
Cincinnati Financial Corp.	19,341		778,282
CNA Financial Corp.^1,2	3,956		108,592
Commerce Group Inc.	3,496		206,544
Conseco Inc.²	17,656		339,701
Delphi Financial Group Inc. Class A	3,225		133,902
Endurance Specialty Holdings Ltd.	4,763		172,421
Erie Indemnity Co. Class A	3,510		180,344
Everest Re Group Ltd.	6,581		540,958
Fidelity National Financial Inc.	18,025		578,783
First American Corp.	9,169		328,250
Gallagher (Arthur J.) & Co.¹	10,760		299,558
Hartford Financial Services Group Inc.	34,296		2,482,002
HCC Insurance Holdings Inc.	8,052		286,410
Hilb, Rogal & Hobbs Co.¹	3,704		129,677
Horace Mann Educators Corp.	5,023		82,277
IPC Holdings Ltd.¹	4,312		162,261


44		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	*Shares*	*Value*
Jefferson-Pilot Corp.¹	16,008	$	803,762
Lincoln National Corp.¹	20,647		928,496
Loews Corp.	14,711		1,042,716
Markel Corp.^1,2	1,072		367,803
Marsh & McLennan Companies Inc.	58,127		1,629,300
MBIA Inc.	16,807		880,351
Mercury General Corp.	3,074		162,492
MetLife Inc.¹	49,335		1,919,131
MGIC Investment Corp.	11,555		681,745
Montpelier Re Holdings Ltd.	6,740		223,701
Nationwide Financial Services Inc.	6,724		238,231
Ohio Casualty Corp.^1,2	7,217		169,239
Old Republic International Corp.	20,049		473,156
PartnerRe Ltd.	6,294		366,814
Philadelphia Consolidated Holding Corp.²	2,196		164,700
Phoenix Companies Inc.¹	10,709		121,333
Platinum Underwriters Holdings Ltd.¹	4,573		135,361
PMI Group Inc. (The)	11,259		395,866
Presidential Life Corp.	2,418		35,085
Principal Financial Group Inc.	36,947		1,443,889
Progressive Corp. (The)¹	20,682		1,887,646
Protective Life Corp.	7,503		286,915
Prudential Financial Inc.	61,055		3,489,293
Radian Group Inc.	10,875		483,176
Reinsurance Group of America Inc.	3,972		177,628
RenaissanceRe Holdings Ltd.	8,323		372,621
SAFECO Corp.	14,876		783,519
Selective Insurance Group Inc.	3,247		143,355
St. Paul Travelers Companies Inc.	78,708		2,817,746
StanCorp Financial Group Inc.	3,325		254,429
Torchmark Corp.¹	12,861		687,163
Transatlantic Holdings Inc.¹	3,077		176,804
Unitrin Inc.¹	5,304		241,332
UNUMProvident Corp.¹	34,758		581,154
White Mountains Insurance Group Ltd.¹	929		582,492
Willis Group Holdings Ltd.	14,110		471,979
XL Capital Ltd. Class A	16,028		1,126,768

			60,754,386

INTERNET – 0.01%
NetBank Inc.	5,605		46,017

			46,017

LODGING – 0.06%
La Quinta Corp.²	19,246		167,440

			167,440

REAL ESTATE – 0.19%
St. Joe Co. (The)	8,262		574,953

			574,953

REAL ESTATE INVESTMENT TRUSTS – 9.33%
Alexandria Real Estate Equities Inc.¹	2,302		158,424
AMB Property Corp.¹	9,685		377,618
American Financial Realty Trust¹	13,127		201,237
Annaly Mortgage Management Inc.¹	14,294		273,301
Apartment Investment & Management Co. Class A	11,091		422,789
Archstone-Smith Trust	23,435		842,957
Arden Realty Group Inc.	7,668		273,671
AvalonBay Communities Inc.	8,436		607,392
Boston Properties Inc.¹	12,696		843,903
Brandywine Realty Trust	6,433		182,054
BRE Properties Inc. Class A¹	5,860		218,109
Camden Property Trust	6,128		312,528
Capital Automotive REIT¹	5,072		172,347
CarrAmerica Realty Corp.	6,479		214,066
Catellus Development Corp.	10,280		284,756
CBL & Associates Properties Inc.	3,472		268,629
CenterPoint Properties Trust¹	5,647		232,713
Colonial Properties Trust	4,463		172,495
Cousins Properties Inc.¹	4,622		124,794
Crescent Real Estate Equities Co.	11,620		195,216
CRT Properties Inc.¹	3,627		83,747
Developers Diversified Realty Corp.	11,989		508,813
Duke Realty Corp.	16,672		510,163
Equity Inns Inc.	6,015		67,729
Equity Lifestyle Properties Inc.¹	2,473		90,512
Equity Office Properties Trust	47,494		1,494,636
Equity Residential	32,874		1,129,222
Essex Property Trust Inc.	2,503		190,103
Federal Realty Investment Trust¹	6,063		324,371
FelCor Lodging Trust Inc.^1,2	5,373		65,766
First Industrial Realty Trust Inc.¹	4,901		187,218
Gables Residential Trust¹	3,413		125,086
General Growth Properties Inc.¹	25,656		1,003,406


SCHEDULES OF INVESTMENTS		45

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	*Shares*	*Value*
Glenborough Realty Trust Inc.¹	4,177	$	85,796
Health Care Property Investors Inc.	15,548		398,651
Health Care REIT Inc.	6,148		205,958
Healthcare Realty Trust Inc.¹	5,503		212,471
Highwoods Properties Inc.	6,421		180,623
Home Properties Inc.	4,003		167,526
Hospitality Properties Trust	7,311		305,454
Host Marriott Corp.	37,589		632,247
HRPT Properties Trust	23,741		278,957
Impac Mortgage Holdings Inc.¹	8,772		160,703
iStar Financial Inc.	13,035		519,314
Kilroy Realty Corp.¹	3,397		148,211
Kimco Realty Corp.	11,088		614,164
Liberty Property Trust	9,923		395,233
Macerich Co. (The)	6,930		417,879
Mack-Cali Realty Corp.	7,089		311,845
Meristar Hospitality Corp.²	10,278		70,404
Mills Corp.	6,282		358,953
Nationwide Health Properties Inc.	7,767		166,447
New Century Financial Corp.¹	5,678		258,065
New Plan Excel Realty Trust Inc.¹	11,975		309,075
Novastar Financial Inc.¹	3,165		112,991
Pan Pacific Retail Properties Inc.	4,736		286,149
Pennsylvania Real Estate Investment Trust¹	3,929		165,607
Plum Creek Timber Co. Inc.	21,503		742,714
Post Properties Inc.¹	4,715		153,615
Prentiss Properties Trust	4,574		151,948
ProLogis	21,573		854,075
Public Storage Inc.	10,303		604,786
Rayonier Inc.¹	5,812		292,111
Realty Income Corp.¹	9,276		223,644
Reckson Associates Realty Corp.	9,590		309,278
Redwood Trust Inc.	2,699		135,274
Regency Centers Corp.	7,131		375,447
Saxon Capital Inc.¹	5,781		99,433
Shurgard Storage Centers Inc. Class A	5,476		229,061
Simon Property Group Inc.	26,049		1,721,057
SL Green Realty Corp.	4,806		293,166
Taubman Centers Inc.¹	5,465		161,764
Thornburg Mortgage Inc.¹	11,059		331,328
Trizec Properties Inc.	10,843		216,752
United Dominion Realty Trust Inc.¹	15,733		348,486
Ventas Inc.	9,849		265,726
Vornado Realty Trust	13,815		1,056,157
Washington Real Estate Investment Trust¹	4,875		145,324
Weingarten Realty Investors	9,304		335,037

			27,968,677

SAVINGS & LOANS – 3.68%
Anchor BanCorp Wisconsin Inc.	2,526		66,737
Astoria Financial Corp.	12,216		323,846
Commercial Capital Bancorp Inc.	5,745		90,714
Commercial Federal Corp.	4,802		125,380
Dime Community Bancshares¹	4,133		61,334
Downey Financial Corp.	2,475		160,207
First Niagara Financial Group Inc.¹	13,884		174,105
FirstFed Financial Corp.²	1,910		96,703
Golden West Financial Corp.¹	36,068		2,248,118
Harbor Florida Bancshares Inc.¹	2,520		87,192
Hudson City Bancorp Inc.	7,954		263,834
Independence Community Bank Corp.	9,202		328,327
MAF Bancorp Inc.	3,914		158,047
New York Community Bancorp Inc.¹	28,159		498,414
OceanFirst Financial Corp.¹	1,151		24,574
People’s Bank	10,985		456,207
PFF Bancorp Inc.	2,623		73,234
Provident Financial Services Inc.¹	8,268		140,473
Sovereign Bancorp Inc.	43,972		904,504
Washington Federal Inc.	10,300		229,587
Washington Mutual Inc.	102,635		4,240,878
Webster Financial Corp.	6,271		285,017

			11,037,432

SOFTWARE – 0.09%
Safeguard Scientifics Inc.²	14,658		19,055
SEI Investments Co.	8,133		266,844

			285,899

TOTAL COMMON STOCKS (Cost: $288,342,225)			299,337,208


46		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	*Principal*		*Value*
SHORT-TERM INVESTMENTS – 8.01%

COMMERCIAL PAPER³ – 2.12%
Alpine Securitization Corp.
2.80%, 05/04/05	$	306,381	$	306,327
Amstel Funding Corp.
2.95%, 08/19/05		44,528		44,130
Amsterdam Funding Corp.
2.80% - 3.02%, 05/04/05 - 05/27/05		121,053		120,930
ANZ National Bank Ltd.
2.94%, 08/15/05		53,563		53,105
Blue Ridge Asset Funding Corp.
3.02%, 06/02/05		160,689		160,272
Bryant Park Funding LLC
2.75%, 05/03/05		21,425		21,424
Cancara Asset Securitisation LLC
2.80% - 2.97%, 05/03/05 - 05/23/05		355,283		355,194
Cantabric Finance LLC
3.04% - 3.12%, 06/28/05 - 07/25/05		133,908		133,034
Chariot Funding LLC
2.99%, 05/20/05		25,470		25,432
Charta LLC
2.99%, 06/16/05 - 06/21/05		224,965		224,077
Chesham Finance LLC
2.89% - 3.01%, 05/10/05 - 06/21/05		380,298		379,835
Corporate Asset Funding
2.75% - 2.99%, 05/05/05 - 06/16/05		198,184		197,708
CRC Funding LLC
2.95% - 3.00%, 5/02/05 - 06/29/05		187,471		187,168
DEPFA Bank PLC
2.28%, 05/03/05		53,563		53,560
Deutsche Bank Financial LLC
2.80%, 05/03/05		321,379		321,354
Edison Asset Securitization
2.26% - 3.12%, 05/03/05 - 09/06/05		364,229		363,316
Fairway Finance LLC
3.15%, 09/15/05		95,294		94,160
Falcon Asset Securitization Corp.
2.79% - 3.02%, 05/03/05 - 06/01/05		214,624		214,368
Ford Credit Auto Receivables
2.74%, 05/04/05		52,492		52,484
Fortis Funding LLC
2.35%, 05/09/05		149,977		149,908
Gemini Securitization Corp.
3.02%, 06/27/05		10,713		10,663
General Electric Capital Corp.
2.74%, 07/07/05		53,563		53,294
Georgetown Funding Co. LLC
2.81% - 3.05%, 05/03/05 - 06/16/05		235,678		235,357
Grampian Funding LLC
3.00% - 3.13%, 08/22/05 - 09/09/05		321,379		318,263
Jupiter Securization Corp.
2.99% - 3.02%, 05/19/05 - 06/03/05		432,447		431,585
Kitty Hawk Funding Corp.
2.88%, 05/04/05		80,896		80,883
Moat Funding LLC
2.74%, 05/02/05		74,988		74,988
Mortgage Interest Networking Trust
2.82% - 3.05%, 05/02/05 - 05/24/05		139,264		139,245
Nordea North America Inc.
2.74%, 07/11/05		53,563		53,278
Park Granada LLC
3.04%, 05/25/05 - 05/31/05		69,632		69,490
Ranger Funding Co. LLC
2.89% - 3.02%, 05/04/05 - 05/27/05		173,171		172,996
Santander Central Hispano
2.75%, 07/08/05		133,908		133,224
Scaldis Capital LLC
2.75% - 2.99%, 05/16/05 - 07/08/05		316,052		315,529


SCHEDULES OF INVESTMENTS		47

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	*Principal*		*Value*
Societe Generale
2.75% - 2.79%, 05/02/05 - 05/03/05	$	369,586	$	369,566
Sydney Capital Corp.
2.81%, 05/04/05		35,352		35,346
Tulip Funding Corp.
2.80% - 3.02%, 05/03/05 - 07/01/05		294,597		294,468
UBS Finance (Delaware)
2.79%, 05/04/05		85,701		85,688
Windmill Funding Corp.
2.80%, 05/04/05		33,102		33,097

				6,364,746

FLOATING RATE NOTES³ – 2.88%
Allstate Life Global Funding II
2.91%, 03/08/06⁴		49,278		49,279
American Express Centurion Bank
2.98% - 3.04%, 10/26/05 - 01/24/06		374,942		374,993
Bank of Nova Scotia
2.80% - 2.94%, 09/26/05 - 01/03/06		69,632		69,619
Beta Finance Inc.
2.81% - 3.16%, 05/04/05 - 04/25/06⁴		411,365		411,383
BMW US Capital LLC
2.92%, 04/18/06⁴		107,126		107,126
Canadian Imperial Bank of Commerce
2.86% - 3.00%, 09/13/05 - 12/14/05		364,229		364,176
CC USA Inc.
2.81% - 3.12%, 05/04/05 - 03/23/06⁴		278,528		278,517
Commodore CDO Ltd.
3.08%, 12/12/05		26,782		26,782
Den Danske Bank NY
2.85% - 2.96%, 08/12/05 - 10/17/05		321,379		321,345
DEPFA Bank PLC
2.99%, 03/15/06		107,126		107,126
Dorada Finance Inc.
3.00% - 3.12%, 07/29/05 - 03/27/06⁴		232,464		232,475
Fairway Finance LLC
2.94%, 06/20/05		53,563		53,562
Fifth Third Bancorp
2.98%, 02/23/06⁴		214,253		214,253
Five Finance Inc.
3.01%, 02/27/06⁴		53,563		53,569
General Electric Capital Corp.
3.01%, 05/09/06		48,207		48,265
General Electric Commercial Equipment Financing LLC
2.95%, 11/20/05		30,819		30,819
Greenwich Capital Holdings Inc.
2.83%, 09/02/05		69,632		69,632
Hartford Life Global Funding Trust
2.94%, 04/15/06		107,126		107,126
HBOS Treasury Services PLC
2.87% - 3.08%, 01/10/06 - 04/24/06		321,379		321,378
K2 USA LLC
2.87% - 3.11%, 06/10/05 - 02/15/06⁴		482,068		482,078
Leafs LLC
2.99%, 01/20/06 - 02/21/06⁴		112,483		112,483
Links Finance LLC
2.92% - 3.15%, 11/16/05 - 02/06/06⁴		224,965		225,050
Lothian Mortgages PLC
3.01%, 01/24/06⁴		160,689		160,689
Marshall & Ilsley Corp.
3.09%, 02/20/06		107,126		107,229
MetLife Global Funding I
2.86%, 05/05/06⁴		160,689		160,689
National City Bank (Ohio)
2.84% - 2.95%, 06/10/05 - 08/09/05		267,816		267,805
Nationwide Building Society
2.89% - 3.12%, 01/13/06 - 04/28/06⁴		396,367		396,436


48		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	*Principal*		*Value*
Norddeutsche Landesbank
3.11%, 07/27/05	$	107,126	$	107,117
Northern Rock PLC
2.88% - 2.99%, 10/25/05 - 02/03/06⁴		321,379		321,379
Permanent Financing PLC
2.87% - 2.89%, 06/10/05 - 03/10/06		380,298		380,299
Royal Bank of Scotland
2.79% - 2.91%, 06/20/05 - 04/05/06		145,424		145,378
Sedna Finance Inc.
2.92%, 01/10/06 - 01/17/06⁴		58,919		58,909
Sigma Finance Inc.
2.82% - 3.16%, 08/17/05 - 01/09/06⁴		546,344		546,360
Societe Generale
2.99%, 03/30/06		91,057		91,029
SunTrust Bank
3.17%, 04/28/06		160,689		160,689
Tango Finance Corp.
2.74% - 2.99%, 05/17/05 - 09/15/05⁴		290,312		290,305
Wachovia Asset Securitization Inc.
3.00% - 3.01%, 05/25/05		291,805		291,804
Wells Fargo & Co.
2.92%, 05/15/06⁴		53,563		53,570
WhistleJacket Capital LLC
2.86% - 2.97%, 06/15/05 - 01/17/06⁴		374,942		374,919
White Pine Finance LLC
2.80% - 3.09%, 05/20/05 - 01/13/06⁴		459,572		459,542
Windmill Funding Corp.
2.78%, 05/03/05		74,988		74,983
Winston Funding Ltd.
3.22%, 07/23/05⁴		76,488		76,488
World Savings Bank
2.86%, 09/09/05		37,494		37,493

				8,624,148

*Security*	Shares or Principal		*Value*
MONEY MARKET FUNDS – 0.24%
Barclays Global Investors Funds Government Money Market Fund, Institutional Shares^3,5		428,505	$	428,505
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares⁵		238,964		238,964
BlackRock Temp Cash Money Market Fund³		15,518		15,518
Short-Term Investment Co. - Prime Money Market Portfolio, Institutional Shares³		43,403		43,403

				726,390

REPURCHASE AGREEMENTS³ – 1.63%
Bank of America N.A. Repurchase Agreement, dated 4/29/05, due 5/2/05, with a maturity value of $2,678,820 and an effective yield of 2.97%.⁶	$	2,678,157		2,678,157
Goldman Sachs & Co. Repurchase Agreements, dated 4/29/05, due 5/2/05, with a total maturity value of $1,302,624 and effective yields of 2.96% - 3.00%.⁶		1,302,302		1,302,302
Merrill Lynch Government Securities Inc. Repurchase Agreements, dated 4/29/05, due 5/2/05, with a total maturity value of $909,563 and effective yields of 2.96% - 3.00%.⁶		909,338		909,338

				4,889,797

TIME DEPOSITS³ – 1.07%
American Express Centurion Bank
3.00%, 05/25/05		267,816		267,816
Banco Bilbao Vizcaya Argentaria SA
3.03% - 3.18%, 06/27/05 - 09/14/05		155,333		155,333
BNP Paribas (New York)
2.78% - 3.03%, 07/11/05 - 08/23/05		149,977		149,977


SCHEDULES OF INVESTMENTS		49

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	*Principal*		*Value*
Credit Suisse First Boston
2.75% - 2.81%, 05/03/05	$	139,264	$	139,264
Dexia Credit Local SA
2.81% - 3.01%, 05/04/05 - 06/21/05		208,896		208,897
First Tennessee Bank
3.00% - 3.04%, 06/14/05 - 06/27/05		187,471		187,471
HBOS Treasury Services PLC
3.39%, 12/14/05		64,276		64,276
Natexis Banques
2.98%, 08/18/05		107,126		107,126
Norddeutsche Landesbank
2.11%, 06/07/05		107,126		107,124
Societe Generale
2.81%, 05/03/05		74,988		74,988
SunTrust Bank
2.68%, 05/03/05		107,126		107,126
Svenska Handelsbanken AB
3.00%, 06/20/05		53,563		53,563
Toronto-Dominion Bank
1.77% - 3.18%, 05/10/05 - 11/09/05		326,735		326,728
UBS AG
2.67% - 3.40%, 11/09/05 - 12/15/05		85,701		85,700
Washington Mutual Bank
2.81% - 3.15%, 05/02/05 - 07/28/05		690,964		690,964
Wells Fargo Bank N.A.
3.04%, 06/29/05		321,379		321,379
World Savings Bank
2.75%, 05/03/05		149,977		149,977

				3,197,709

U.S. GOVERNMENT AGENCY NOTES³ – 0.07%
Federal Home Loan Mortgage Corp.
2.06%, 05/31/05		53,406		53,317
Federal National Mortgage Association
2.33%, 07/22/05		160,689		159,849

				213,166


TOTAL SHORT-TERM INVESTMENTS (Cost: $24,015,956)				24,015,956

TOTAL INVESTMENTS IN SECURITIES – 107.82% (Cost: $312,358,181)				323,353,164
Other Assets, Less Liabilities – (7.82%)				(23,446,555	)

NET ASSETS – 100.00%			$	299,906,609

¹	All or a portion of this security represents a security on loan. See Note 5.

²	Non-income earning security.

³	All or a portion of this security (these securities) represent(s) an investment of securities lending collateral. See Note 5.

⁴	All or a portion of this security is 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	The Fund’s investment adviser is an affiliate of the issuer. See Note 2.

⁶	Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 3.12% to 7.13% and maturity dates ranging from 5/25/05 to 8/1/42.

See notes to financial statements.


50		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

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

April 30, 2005


*Security*	*Shares*	*Value*
COMMON STOCKS – 99.97%

AEROSPACE & DEFENSE – 13.01%
AAR Corp.¹	4,535	$	66,801
Alliant Techsystems Inc.^1,2	5,758		398,338
Armor Holdings Inc.¹	4,657		163,042
Boeing Co. (The)	114,183		6,796,172
Curtiss-Wright Corp. Class B	1,392		75,474
Engineered Support Systems Inc.²	6,085		214,922
Esterline Technologies Corp.¹	3,928		126,953
General Dynamics Corp.	25,676		2,697,264
Goodrich (B.F.) Co.	18,247		735,354
Kaman Corp. Class A²	3,575		46,046
L-3 Communications Holdings Inc.	17,675		1,254,395
Lockheed Martin Corp.	54,410		3,316,289
Northrop Grumman Corp.	55,087		3,020,971
Raytheon Co.	69,317		2,607,012
Rockwell Collins Inc.	24,876		1,141,311
Titan Corp. (The)¹	12,883		231,250
United Defense Industries Inc.	7,422		549,080
United Technologies Corp.	72,510		7,375,717

			30,816,391

AUTO MANUFACTURERS – 1.10%
Navistar International Corp.¹	9,486		280,122
Oshkosh Truck Corp.	5,247		394,312
PACCAR Inc.	26,678		1,811,436
Wabash National Corp.²	4,840		123,420

			2,609,290

BUILDING MATERIALS – 2.59%
American Standard Companies Inc.	27,721		1,239,406
Eagle Materials Inc.²	1,518		114,229
Eagle Materials Inc. Class B	1,257		92,063
ElkCorp	2,920		80,300
Florida Rock Industries Inc.²	5,739		333,321
Lafarge North America Inc.	4,591		254,846
Martin Marietta Materials Inc.	7,390		406,376
Masco Corp.	68,251		2,149,224
Simpson Manufacturing Co. Inc.²	5,756		155,412
Texas Industries Inc.	3,255		150,316
USG Corp.^1,2	4,912		206,255
Vulcan Materials Co.	13,162		698,112
York International Corp.²	6,323		247,419

			6,127,279

CHEMICALS – 0.35%
Sherwin-Williams Co. (The)	18,398		819,999

			819,999

COMMERCIAL SERVICES – 4.12%
Accenture Ltd.¹	69,002		1,497,343
Alliance Data Systems Corp.¹	6,935		280,174
Banta Corp.²	3,780		157,399
Bowne & Co. Inc.²	5,281		68,759
ChoicePoint Inc.¹	13,604		536,950
Convergys Corp.¹	21,681		280,986
Corporate Executive Board Co. (The)²	5,982		393,197
Corrections Corp. of America¹	4,916		186,071
Deluxe Corp.²	7,781		310,695
Donnelley (R.R.) & Sons Co.	33,696		1,108,935
Forrester Research Inc.^1,2	2,297		34,317
FTI Consulting Inc.^1,2	6,461		142,659
Hewitt Associates Inc. Class A^1,2	7,002		186,323
Hudson Highland Group Inc.^1,2	3,118		42,997
Iron Mountain Inc.¹	16,906		502,108
Manpower Inc.	13,856		534,149
MPS Group Inc.¹	16,300		130,237
Navigant Consulting Inc.^1,2	7,155		167,928
NCO Group Inc.^1,2	4,437		82,661
Paychex Inc.²	51,806		1,585,264
PHH Corp.¹	8,206		183,404
PRG-Schultz International Inc.^1,2	8,691		41,456
Quanta Services Inc.^1,2	15,860		126,563
Resources Connection Inc.^1,2	7,379		141,013
Robert Half International Inc.²	26,448		656,439
Spherion Corp.¹	9,327		52,324
TeleTech Holdings Inc.^1,2	5,800		60,900
United Rentals Inc.^1,2	10,053		184,875
Viad Corp.²	3,316		85,387

			9,761,513

COMPUTERS – 0.66%
Affiliated Computer Services Inc. Class A^1,2	18,697		891,286
BISYS Group Inc. (The)¹	18,385		259,596
Ceridian Corp.^1,2	22,784		384,366
Echelon Corp.¹	4,798		30,179

			1,565,427


SCHEDULES OF INVESTMENTS		51

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	*Shares*	*Value*
DISTRIBUTION & WHOLESALE – 0.41%
Grainger (W.W.) Inc.	12,528	$	692,673
Hughes Supply Inc.	10,232		267,055

			959,728

ELECTRIC – 0.19%
MDU Resources Group Inc.²	16,681		450,887

			450,887

ELECTRICAL COMPONENTS & EQUIPMENT – 2.42%
AMETEK Inc.²	10,468		396,423
Artesyn Technologies Inc.¹	5,764		40,636
Belden CDT Inc.²	7,124		130,654
C&D Technologies Inc.	4,051		28,479
Emerson Electric Co.	64,811		4,061,705
General Cable Corp.^1,2	5,865		71,260
GrafTech International Ltd.¹	14,753		56,209
Hubbell Inc. Class B	7,682		333,783
Littelfuse Inc.^1,2	3,498		94,236
Molex Inc.	8,805		223,735
Molex Inc. Class A²	11,255		257,627
Power-One Inc.¹	11,008		46,013

			5,740,760

ELECTRONICS – 4.94%
Agilent Technologies Inc.¹	68,296		1,417,142
Amphenol Corp. Class A	13,451		530,507
Arrow Electronics Inc.¹	17,661		429,869
Avnet Inc.¹	18,456		348,634
AVX Corp.²	7,790		84,833
Benchmark Electronics Inc.¹	6,015		162,646
Checkpoint Systems Inc.^1,2	5,913		93,603
Coherent Inc.^1,2	4,602		147,632
CTS Corp.	5,488		57,898
Dionex Corp.¹	3,190		137,011
Electro Scientific Industries Inc.¹	4,218		69,724
Flextronics International Ltd.¹	85,648		954,975
FLIR Systems Inc.^1,2	10,587		281,614
Jabil Circuit Inc.¹	25,239		696,596
KEMET Corp.¹	13,607		85,044
Methode Electronics Inc.	5,289		59,607
Mettler Toledo International Inc.¹	6,698		307,103
Orbotech Ltd.¹	4,854		98,682
Park Electrochemical Corp.	2,799		61,998
Parker Hannifin Corp.	18,307		1,097,322
PerkinElmer Inc.	18,472		341,732
Photon Dynamics Inc.^1,2	2,691		52,071
Plexus Corp.^1,2	6,839		82,820
Sanmina-SCI Corp.¹	80,003		320,812
Solectron Corp.¹	148,015		488,450
Symbol Technologies Inc.	36,731		491,093
Taser International Inc.^1,2	9,122		78,814
Technitrol Inc.	5,822		75,570
Tektronix Inc.	14,154		306,576
Thermo Electron Corp.¹	25,073		626,324
Thomas & Betts Corp.¹	9,019		280,671
Trimble Navigation Ltd.¹	7,819		269,130
Varian Inc.¹	5,410		179,450
Vishay Intertechnology Inc.¹	22,214		237,468
Waters Corp.¹	18,560		735,533

			11,688,954

ENERGY - ALTERNATE SOURCES – 0.02%
FuelCell Energy Inc.^1,2	6,541		52,328

			52,328

ENGINEERING & CONSTRUCTION – 0.66%
EMCOR Group Inc.^1,2	2,265		101,200
Fluor Corp.²	12,809		660,432
Granite Construction Inc.	4,885		110,303
Insituform Technologies Inc. Class A^1,2	4,219		62,905
Jacobs Engineering Group Inc.^1,2	8,633		420,513
Shaw Group Inc. (The)^1,2	11,747		212,268

			1,567,621

ENVIRONMENTAL CONTROL – 1.85%
Allied Waste Industries Inc.^1,2	31,144		248,841
Casella Waste Systems Inc. Class A¹	2,526		29,782
Mine Safety Appliances Co.²	4,323		154,331
Republic Services Inc.	20,574		711,860
Stericycle Inc.^1,2	6,919		336,748
Tetra Tech Inc.^1,2	8,509		90,110
Waste Connections Inc.^1,2	7,335		258,339
Waste Management Inc.	89,108		2,538,687

			4,368,698

FOREST PRODUCTS & PAPER – 0.91%
Georgia-Pacific Corp.	34,961		1,198,113


52		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	*Shares*	*Value*
Louisiana-Pacific Corp.	15,726	$	386,860
Temple-Inland Inc.	17,124		577,935

			2,162,908

HAND & MACHINE TOOLS – 0.15%
Kennametal Inc.	5,579		252,729
Regal-Beloit Corp.²	3,457		91,438

			344,167

HEALTH CARE - PRODUCTS – 0.01%
Bioveris Corp.^1,2	3,931		18,790

			18,790

HOUSEHOLD PRODUCTS & WARES – 0.87%
Fortune Brands Inc.	22,138		1,872,432
Jarden Corp.^1,2	4,240		189,401

			2,061,833

HOUSEWARES – 0.13%
Toro Co.	7,438		307,338

			307,338

INTERNET – 0.53%
CheckFree Corp.^1,2	10,035		368,084
Monster Worldwide Inc.^1,2	16,267		374,304
Stamps.com Inc.^1,2	2,975		57,507
WebMD Corp.^1,2	47,856		454,632

			1,254,527

LEISURE TIME – 0.26%
Brunswick Corp.²	14,701		617,442

			617,442

MACHINERY – 4.72%
AGCO Corp.¹	13,818		237,670
Albany International Corp. Class A	4,277		134,127
Astec Industries Inc.^1,2	2,451		57,108
Caterpillar Inc.	52,421		4,615,669
Cognex Corp.²	6,010		131,258
Cummins Inc.²	6,088		413,984
Deere & Co.	38,254		2,392,405
Flowserve Corp.¹	8,427		233,934
Graco Inc.	10,618		358,570
IDEX Corp.	7,556		281,461
Joy Global Inc.²	11,925		403,900
Kadant Inc.¹	2,290		39,388
Manitowoc Co. Inc. (The)	4,596		183,840
Nordson Corp.	3,960		127,591
Rockwell Automation Inc.	25,690		1,187,649
Stewart & Stevenson Services Inc.²	3,940		94,560
Terex Corp.¹	7,571		283,004

			11,176,118

MANUFACTURING – 41.63%
Acuity Brands Inc.²	6,469		154,674
AptarGroup Inc.²	5,165		249,108
Brink’s Co. (The)	8,673		279,791
Carlisle Companies Inc.²	4,772		342,725
CLARCOR Inc.	3,876		196,164
Cooper Industries Ltd.	14,089		896,906
Crane Co.	7,814		200,038
Danaher Corp.	39,339		1,991,734
Donaldson Co. Inc.²	11,196		333,081
Dover Corp.	31,265		1,136,795
Eaton Corp.	23,292		1,366,076
General Electric Co.	1,623,395		58,766,899
Harsco Corp.	6,307		338,371
Honeywell International Inc.	119,539		4,274,715
Illinois Tool Works Inc.	39,892		3,343,747
Ingersoll-Rand Co. Class A	26,952		2,071,800
ITT Industries Inc.²	14,190		1,283,627
Jacuzzi Brands Inc.¹	11,401		103,179
Pall Corp.²	19,197		515,056
Roper Industries Inc.²	6,462		437,284
SPX Corp.²	11,674		451,667
Teleflex Inc.	5,556		297,079
Textron Inc.²	17,998		1,356,149
3M Co.	109,656		8,385,394
Trinity Industries Inc.²	6,744		157,472
Tyco International Ltd.	308,969		9,673,819

			98,603,350

METAL FABRICATE & HARDWARE – 0.63%
Kaydon Corp.²	4,269		117,141
Mueller Industries Inc.	4,787		123,983
Precision Castparts Corp.	9,985		735,495
Quanex Corp.	3,876		195,583
Timken Co. (The)	12,514		310,848

			1,483,050


SCHEDULES OF INVESTMENTS		53

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	*Shares*	*Value*
MINING – 0.22%
Owens-Illinois Inc.^1,2	21,406	$	524,875

			524,875

PACKAGING & CONTAINERS – 1.59%
Ball Corp.	16,035		633,383
Bemis Co. Inc.	16,404		452,094
Chesapeake Corp.	2,918		56,668
Crown Holdings Inc.¹	25,327		381,171
Packaging Corp. of America	9,409		210,668
Pactiv Corp.¹	23,064		494,492
Sealed Air Corp.^1,2	12,892		624,488
Smurfit-Stone Container Corp.²	39,021		511,565
Sonoco Products Co.	15,028		407,109

			3,771,638

RETAIL – 0.08%
MSC Industrial Direct Co. Inc. Class A	7,288		195,829

			195,829

SEMICONDUCTORS – 0.02%
Veeco Instruments Inc.^1,2	4,051		53,919

			53,919

SOFTWARE – 5.22%
Acxiom Corp.	13,127		249,413
Automatic Data Processing Inc.²	90,714		3,940,616
Certegy Inc.²	9,709		353,699
eFunds Corp.¹	7,308		159,753
First Data Corp.²	131,722		5,009,388
Fiserv Inc.^1,2	30,014		1,269,592
Global Payments Inc.²	5,798		375,478
IMS Health Inc.	35,990		863,040
Total System Services Inc.	5,703		140,180

			12,361,159

TELECOMMUNICATIONS – 0.22%
Aeroflex Inc.^1,2	11,254		89,244
Anaren Inc.^1,2	3,359		32,683
Black Box Corp.²	2,651		86,211
CommScope Inc.¹	8,213		115,968
Newport Corp.¹	6,764		93,005
Powerwave Technologies Inc.¹	14,012		101,167
Tollgrade Communications Inc.¹	1,817		12,828

			531,106

TEXTILES – 0.34%
Cintas Corp.	21,015		810,969

			810,969

TRANSPORTATION – 10.03%
Alexander & Baldwin Inc.	6,771		275,783
Arkansas Best Corp.²	3,409		107,486
Burlington Northern Santa Fe Corp.	58,070		2,801,878
CH Robinson Worldwide Inc.²	13,052		673,483
CNF Inc.	7,993		341,701
CSX Corp.	33,031		1,325,534
EGL Inc.¹	5,341		104,203
Expeditors International Washington Inc.²	16,365		803,685
FedEx Corp.	43,261		3,675,022
General Maritime Corp.^1,2	5,438		238,456
Hunt (J.B.) Transport Services Inc.	9,856		385,271
Kansas City Southern Industries Inc.^1,2	9,525		180,213
Landstar System Inc.¹	9,274		284,248
Norfolk Southern Corp.	61,519		1,931,697
OMI Corp.²	14,075		256,024
Overseas Shipholding Group Inc.	4,159		234,692
Ryder System Inc.	9,893		365,348
SCS Transportation Inc.¹	2,412		36,879
Swift Transportation Co. Inc.^1,2	7,550		161,042
Union Pacific Corp.²	40,106		2,563,977
United Parcel Service Inc. Class B²	88,481		6,309,580
USF Corp.²	4,348		185,355
Werner Enterprises Inc.	8,605		159,881
Yellow Roadway Corp.¹	6,977		341,873

			23,743,311

TRUCKING & LEASING – 0.09%
GATX Corp.²	6,768		221,449

			221,449


TOTAL COMMON STOCKS (Cost: $230,770,685)			236,772,653


54		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	*Principal*		*Value*
SHORT-TERM INVESTMENTS – 7.32%

COMMERCIAL PAPER³ – 1.95%
Alpine Securitization Corp.
2.80%, 05/04/05	$	222,697	$	222,660
Amstel Funding Corp.
2.95%, 08/19/05		32,366		32,077
Amsterdam Funding Corp.
2.80% - 3.02%, 05/04/05 - 05/27/05		87,989		87,899
ANZ National Bank Ltd.
2.94%, 08/15/05		38,933		38,600
Blue Ridge Asset Funding Corp.
3.02%, 06/02/05		116,799		116,495
Bryant Park Funding LLC
2.75%, 05/03/05		15,573		15,572
Cancara Asset Securitisation LLC
2.80% - 2.97%, 05/03/05 - 05/23/05		258,242		258,177
Cantabric Finance LLC
3.04% - 3.12%, 06/28/05 - 07/25/05		97,333		96,697
Chariot Funding LLC
2.99%, 05/20/05		18,513		18,486
Charta LLC
2.99%, 06/16/05 - 06/21/05		163,519		162,873
Chesham Finance LLC
2.89% - 3.01%, 05/10/05 - 06/21/05		276,425		276,088
Corporate Asset Funding
2.75% - 2.99%, 05/05/05 - 06/16/05		144,052		143,706
CRC Funding LLC
2.95% - 3.00%, 5/02/05 - 06/29/05		136,266		136,045
DEPFA Bank PLC
2.28%, 05/03/05		38,933		38,931
Deutsche Bank Financial LLC
2.80%, 05/03/05		233,598		233,580
Edison Asset Securitization
2.26% - 3.12%, 05/03/05 - 09/06/05		264,745		264,081
Fairway Finance LLC
3.15%, 09/15/05		69,266		68,442
Falcon Asset Securitization Corp.
2.79% - 3.02%, 05/03/05 - 06/01/05		156,002		155,817
Ford Credit Auto Receivables
2.74%, 05/04/05		38,154		38,149
Fortis Funding LLC
2.35%, 05/09/05		109,013		108,963
Gemini Securitization Corp.
3.02%, 06/27/05		7,787		7,750
General Electric Capital Corp.
2.74%, 07/07/05		38,933		38,737
Georgetown Funding Co. LLC
2.81% - 3.05%, 05/03/05 - 06/16/05		171,305		171,073
Grampian Funding LLC
3.00% - 3.13%, 08/22/05 - 09/09/05		233,598		231,333
Jupiter Securization Corp.
2.99% - 3.02%, 05/19/05 - 06/03/05		314,330		313,702
Kitty Hawk Funding Corp.
2.88%, 05/04/05		58,801		58,791
Moat Funding LLC
2.74%, 05/02/05		54,506		54,506
Mortgage Interest Networking Trust
2.82% - 3.05%, 05/02/05 - 05/24/05		101,226		101,212
Nordea North America Inc.
2.74%, 07/11/05		38,933		38,726
Park Granada LLC
3.04%, 05/25/05 - 05/31/05		50,613		50,509
Ranger Funding Co. LLC
2.89% - 3.02%, 05/04/05 - 05/27/05		125,871		125,743
Santander Central Hispano
2.75%, 07/08/05		97,333		96,835
Scaldis Capital LLC
2.75% - 2.99%, 05/16/05 - 07/08/05		229,727		229,347


SCHEDULES OF INVESTMENTS		55

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	*Principal*		*Value*
Societe Generale
2.75% - 2.79%, 05/02/05 - 05/03/05	$	268,638	$	268,623
Sydney Capital Corp.
2.81%, 05/04/05		25,696		25,692
Tulip Funding Corp.
2.80% - 3.02%, 05/03/05 - 07/01/05		214,132		214,038
UBS Finance (Delaware)
2.79%, 05/04/05		62,293		62,284
Windmill Funding Corp.
2.80%, 05/04/05		24,061		24,057

				4,626,296

FLOATING RATE NOTES³ – 2.65%
Allstate Life Global Funding II
2.91%, 03/08/06⁴		35,818		35,819
American Express Centurion Bank
2.98% - 3.04%, 10/26/05 - 01/24/06		272,531		272,569
Bank of Nova Scotia
2.80% - 2.94%, 09/26/05 - 01/03/06		50,613		50,603
Beta Finance Inc.
2.81% - 3.16%, 05/04/05 - 04/25/06⁴		299,006		299,019
BMW US Capital LLC
2.92%, 04/18/06⁴		77,866		77,866
Canadian Imperial Bank of Commerce
2.86% - 3.00%, 09/13/05 - 12/14/05		264,745		264,706
CC USA Inc.
2.81% - 3.12%, 05/04/05 - 03/23/06⁴		202,452		202,444
Commodore CDO Ltd.
3.08%, 12/12/05		19,467		19,467
Den Danske Bank NY
2.85% - 2.96%, 08/12/05 - 10/17/05		233,598		233,574
DEPFA Bank PLC
2.99%, 03/15/06		77,866		77,866
Dorada Finance Inc.
3.00% - 3.12%, 07/29/05 - 03/27/06⁴		168,969		168,978
Fairway Finance LLC
2.94%, 06/20/05		38,933		38,933
Fifth Third Bancorp
2.98%, 02/23/06⁴		155,732		155,732
Five Finance Inc.
3.01%, 02/27/06⁴		38,933		38,937
General Electric Capital Corp.
3.01%, 05/09/06		35,040		35,082
General Electric Commercial Equipment Financing LLC
2.95%, 11/20/05		22,401		22,401
Greenwich Capital Holdings Inc.
2.83%, 09/02/05		50,613		50,613
Hartford Life Global Funding Trust
2.94%, 04/15/06		77,866		77,866
HBOS Treasury Services PLC
2.87% - 3.08%, 01/10/06 - 04/24/06		233,598		233,598
K2 USA LLC
2.87% - 3.11%, 06/10/05 - 02/15/06⁴		350,397		350,403
Leafs LLC
2.99%, 01/20/06 - 02/21/06⁴		81,759		81,760
Links Finance LLC
2.92% - 3.15%, 11/16/05 - 02/06/06⁴		163,519		163,581
Lothian Mortgages PLC
3.01%, 01/24/06⁴		116,799		116,799
Marshall & Ilsley Corp.
3.09%, 02/20/06		77,866		77,941
MetLife Global Funding I
2.86%, 05/05/06⁴		116,799		116,799
National City Bank (Ohio)
2.84% - 2.95%, 06/10/05 - 08/09/05		194,665		194,657
Nationwide Building Society
2.89% - 3.12%, 01/13/06 - 04/28/06⁴		288,104		288,156
Norddeutsche Landesbank
3.11%, 07/27/05		77,866		77,860
Northern Rock PLC
2.88% - 2.99%, 10/25/05 - 02/03/06⁴		233,598		233,598


56		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	Shares or Principal		*Value*
Permanent Financing PLC
2.87% - 2.89%, 06/10/05 - 03/10/06	$	276,425	$	276,425
Royal Bank of Scotland
2.79% - 2.91%, 06/20/05 - 04/05/06		105,703		105,670
Sedna Finance Inc.
2.92%, 01/10/06 - 01/17/06⁴		42,826		42,818
Sigma Finance Inc.
2.82% - 3.16%, 08/17/05 - 01/09/06⁴		397,117		397,129
Societe Generale
2.99%, 03/30/06		66,186		66,166
SunTrust Bank
3.17%, 04/28/06		116,799		116,799
Tango Finance Corp.
2.74% - 2.99%, 05/17/05 - 09/15/05⁴		211,017		211,011
Wachovia Asset Securitization Inc.
3.00% - 3.01%, 05/25/05		212,102		212,102
Wells Fargo & Co.
2.92%, 05/15/06⁴		38,933		38,938
WhistleJacket Capital LLC
2.86% - 2.97%, 06/15/05 - 01/17/06⁴		272,531		272,514
White Pine Finance LLC
2.80% - 3.09%, 05/20/05 - 01/13/06⁴		334,045		334,024
Windmill Funding Corp.
2.78%, 05/03/05		54,506		54,502
Winston Funding Ltd.
3.22%, 07/23/05⁴		55,596		55,596
World Savings Bank
2.86%, 09/09/05		27,253		27,252

				6,268,573

MONEY MARKET FUNDS – 0.17%
Barclays Global Investors Funds Government Money Market Fund, Institutional Shares^3,5		311,464		311,464
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares⁵		58,163		58,163
BlackRock Temp Cash Money Market Fund³		11,279		11,279
Short-Term Investment Co. - Prime Money Market Portfolio, Institutional Shares³		31,548		31,548

				412,454

REPURCHASE AGREEMENTS³ – 1.50%
Bank of America N.A. Repurchase Agreement, dated 4/29/05, due 5/2/05, with a maturity value of $1,947,134 and an effective yield of 2.97%.⁶	$	1,946,652		1,946,652
Goldman Sachs & Co. Repurchase Agreements, dated 4/29/05, due 5/2/05, with a total maturity value of $946,801 and effective yields of 2.96% - 3.00%.⁶		946,595		946,595
Merrill Lynch Government Securities Inc. Repurchase Agreements, dated 4/29/05, due 5/2/05, with a total maturity value of $661,127 and effective yields of 2.96% - 3.00%.⁶		660,963		660,963

				3,554,210

TIME DEPOSITS³ – 0.98%
American Express Centurion Bank
3.00%, 05/25/05		194,665		194,665
Banco Bilbao Vizcaya Argentaria SA
3.03% - 3.18%, 06/27/05 - 09/14/05		112,906		112,906
BNP Paribas (New York)
2.78% - 3.03%, 07/11/05 - 08/23/05		109,013		109,012
Credit Suisse First Boston
2.75% - 2.81%, 05/03/05		101,226		101,226
Dexia Credit Local SA
2.81% - 3.01%, 05/04/05 - 06/21/05		151,839		151,840
First Tennessee Bank
3.00% - 3.04%, 06/14/05 - 06/27/05		136,266		136,266


SCHEDULES OF INVESTMENTS		57

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	*Principal*		*Value*
HBOS Treasury Services PLC
3.39%, 12/14/05	$	46,720	$	46,720
Natexis Banques
2.98%, 08/18/05		77,866		77,866
Norddeutsche Landesbank
2.11%, 06/07/05		77,866		77,865
Societe Generale
2.81%, 05/03/05		54,506		54,506
SunTrust Bank
2.68%, 05/03/05		77,866		77,866
Svenska Handelsbanken AB
3.00%, 06/20/05		38,933		38,933
Toronto-Dominion Bank
1.77% - 3.18%, 05/10/05 - 11/09/05		237,492		237,486
UBS AG
2.67% - 3.40%, 11/09/05 - 12/15/05		62,293		62,292
Washington Mutual Bank
2.81% - 3.15%, 05/02/05 - 07/28/05		502,236		502,236
Wells Fargo Bank N.A.
3.04%, 06/29/05		233,598		233,598
World Savings Bank
2.75%, 05/03/05		109,013		109,013

				2,324,296

U.S. GOVERNMENT AGENCY NOTES³ – 0.07%
Federal Home Loan Mortgage Corp.
2.06%, 05/31/05		38,819		38,754
Federal National Mortgage Association
2.33%, 07/22/05		116,799		116,188

				154,942

TOTAL SHORT-TERM INVESTMENTS (Cost: $17,340,771)				17,340,771

TOTAL INVESTMENTS IN SECURITIES – 107.29% (Cost: $248,111,456)				254,113,424
Other Assets, Less Liabilities – (7.29%)				(17,275,291	)

NET ASSETS – 100.00%			$	236,838,133

¹	Non-income earning security.

²	All or a portion of this security represents a security on loan. See Note 5.

³	All or a portion of this security (these securities) represent(s) an investment of securities lending collateral. See Note 5.

⁴	All or a portion of this security is 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	The Fund’s investment adviser is an affiliate of the issuer. See Note 2.

⁶	Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 3.12% to 7.13% and maturity dates ranging from 5/25/05 to 8/1/42.

See notes to financial statements.


58		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

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

April 30, 2005


*Security*	*Shares*	*Value*
COMMON STOCKS – 99.76%

BANKS – 43.90%
AMCORE Financial Inc.	1,842	$	47,450
AmSouth Bancorp¹	27,927		735,039
Associated Bancorp¹	9,499		293,709
BancorpSouth Inc.¹	5,658		119,780
Bank of America Corp.	319,921		14,409,242
Bank of Hawaii Corp.	4,141		196,076
Bank of New York Co. Inc. (The)	61,502		1,718,366
BB&T Corp.¹	43,892		1,721,005
Cathay General Bancorp	3,519		115,669
Chittenden Corp.¹	3,803		95,493
Citizens Banking Corp.	2,897		77,669
City National Corp.	3,584		252,672
Colonial BancGroup Inc. (The)	10,522		232,115
Comerica Inc.¹	13,533		774,900
Commerce Bancorp Inc.¹	12,516		350,323
Commerce Bancshares Inc.¹	5,380		259,262
Compass Bancshares Inc.	9,695		417,079
Cullen/Frost Bankers Inc.	4,058		175,793
East West Bancorp Inc.	3,958		127,131
Fifth Third Bancorp	39,864		1,734,084
First BanCorp (Puerto Rico)	2,929		106,205
First Horizon National Corp.¹	9,743		404,627
First Marblehead Corp. (The)^1,2	2,544		98,020
First Midwest Bancorp Inc.	3,652		119,274
FirstMerit Corp.¹	5,690		139,576
FNB Corp. (Pennsylvania)¹	4,276		81,030
Fremont General Corp.	5,440		117,994
Fulton Financial Corp.¹	9,982		208,125
Greater Bay Bancorp¹	4,199		105,647
Hibernia Corp. Class A	12,256		382,755
Hudson United Bancorp	3,533		121,041
Huntington Bancshares Inc.¹	17,240		405,312
Investors Financial Services Corp.¹	5,224		219,147
KeyCorp	32,260		1,069,742
M&T Bank Corp.¹	6,605		683,287
Marshall & Ilsley Corp.	15,170		646,849
Mellon Financial Corp.¹	33,630		931,215
Mercantile Bankshares Corp.	6,237		316,902
National City Corp.¹	44,957		1,526,740
North Fork Bancorp Inc.	34,612		974,328
Northern Trust Corp.	15,359		691,616
Old National Bancorp¹	5,623		107,343
Pacific Capital Bancorp	3,390		97,734
Park National Corp.¹	943		94,771
PNC Financial Services Group	22,388		1,191,713
Popular Inc.	19,279		446,116
Provident Bankshares Corp.¹	2,698		78,997
Regions Financial Corp.¹	36,638		1,227,007
Republic Bancorp Inc.¹	5,830		73,924
Silicon Valley Bancshares^1,2	2,801		132,767
Sky Financial Group Inc.	8,375		218,587
South Financial Group Inc. (The)	5,561		146,755
Southwest Bancorp of Texas Inc.	5,139		85,307
State Street Corp.¹	26,661		1,232,538
Sterling Bancshares Inc.	3,704		49,745
SunTrust Banks Inc.	28,357		2,065,240
Susquehanna Bancshares Inc.¹	3,642		76,591
Synovus Financial Corp.	20,362		570,747
TCF Financial Corp.¹	10,336		261,397
TD Banknorth Inc.²	7,235		222,838
Texas Regional Bancshares Inc. Class A	3,552		98,994
TrustCo Bank Corp. NY¹	6,014		66,214
Trustmark Corp.	4,003		110,163
U.S. Bancorp	147,923		4,127,052
UCBH Holdings Inc.¹	7,122		112,029
UnionBanCal Corp.	4,554		280,344
United Bancshares Inc.	3,378		103,434
Valley National Bancorp¹	7,770		192,618
W Holding Co. Inc.	10,753		86,992
Wachovia Corp.	125,792		6,438,035
Wells Fargo & Co.	134,014		8,032,799
Westamerica Bancorp¹	2,498		124,750
Whitney Holding Corp.	3,213		145,452
Wilmington Trust Corp.¹	5,226		184,739
Zions Bancorporation¹	7,076		495,532

			62,181,553

COMMERCIAL SERVICES – 0.93%
Equifax Inc.	10,743		361,502
MoneyGram International Inc.	6,965		135,121
Moody’s Corp.	9,968		818,771

			1,315,394


SCHEDULES OF INVESTMENTS		59

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	*Shares*	*Value*
DIVERSIFIED FINANCIAL SERVICES – 48.84%
Affiliated Managers Group Inc.^1,2	2,332	$	145,820
American Express Co.	88,131		4,644,504
AmeriCredit Corp.²	12,385		289,809
Ameritrade Holding Corp.²	22,514		235,947
Bear Stearns Companies Inc. (The)	8,138		770,343
Capital One Financial Corp.	19,345		1,371,367
CapitalSource Inc.²	5,216		109,536
Chicago Mercantile Exchange Holdings Inc.	2,151		420,563
CIT Group Inc.	16,642		670,340
Citigroup Inc.	411,041		19,302,485
Countrywide Financial Corp.¹	44,636		1,615,377
Doral Financial Corp.	7,321		102,860
E*TRADE Financial Corp.²	28,918		321,279
Eaton Vance Corp.	10,503		246,085
Edwards (A.G.) Inc.	6,246		248,029
Federal Home Loan Mortgage Corp.	54,555		3,356,224
Federal National Mortgage Association	76,681		4,136,940
Federated Investors Inc. Class B	7,548		214,741
Franklin Resources Inc.¹	11,075		760,631
Goldman Sachs Group Inc. (The)	32,648		3,486,480
IndyMac Bancorp Inc.	4,808		185,012
Investment Technology Group Inc.²	3,363		63,931
Janus Capital Group Inc.	18,867		245,082
Jefferies Group Inc.¹	3,871		140,130
JP Morgan Chase & Co.	282,175		10,014,391
Knight Trading Group Inc.²	9,118		76,865
LaBranche & Co. Inc.²	4,616		30,696
Legg Mason Inc.	8,311		588,917
Lehman Brothers Holdings Inc.	21,862		2,005,183
MBNA Corp.	89,409		1,765,828
Merrill Lynch & Co. Inc.	67,635		3,647,556
Morgan Stanley	78,572		4,134,459
Piper Jaffray Companies Inc.²	1,561		43,162
Providian Financial Corp.²	23,093		384,960
Raymond James Financial Inc.	4,691		126,516
Schwab (Charles) Corp. (The)	88,251		913,398
SLM Corp.	34,022		1,620,808
SWS Group Inc.	1,404		20,498
T. Rowe Price Group Inc.	10,231		564,444
W.P. Stewart & Co. Ltd.¹	1,885		41,621
Waddell & Reed Financial Inc. Class A¹	6,486		112,921

			69,175,738

INSURANCE – 0.68%
Principal Financial Group Inc.	24,858		971,451

			971,451

INTERNET – 0.02%
NetBank Inc.¹	3,689		30,287

			30,287

SAVINGS & LOANS – 5.25%
Anchor BanCorp Wisconsin Inc.	1,825		48,216
Astoria Financial Corp.	8,217		217,833
Commercial Capital Bancorp Inc.	4,027		63,586
Commercial Federal Corp.	3,114		81,306
Dime Community Bancshares¹	2,764		41,018
Downey Financial Corp.	1,709		110,624
First Niagara Financial Group Inc.	9,594		120,309
FirstFed Financial Corp.²	1,371		69,414
Golden West Financial Corp.¹	24,272		1,512,874
Harbor Florida Bancshares Inc.¹	1,834		63,456
Hudson City Bancorp Inc.	5,350		177,459
Independence Community Bank Corp.	6,190		220,859
MAF Bancorp Inc.	2,561		103,413
New York Community Bancorp Inc.¹	18,944		335,309
OceanFirst Financial Corp.	757		16,162
People’s Bank¹	7,390		306,907
PFF Bancorp Inc.	1,863		52,015
Provident Financial Services Inc.¹	5,691		96,690
Sovereign Bancorp Inc.	29,587		608,605
Washington Federal Inc.	6,814		151,884
Washington Mutual Inc.	69,055		2,853,353
Webster Financial Corp.¹	4,218		191,708

			7,443,000

SOFTWARE – 0.14%
Safeguard Scientifics Inc.²	10,157		13,204
SEI Investments Co.	5,470		179,471

			192,675

TOTAL COMMON STOCKS (Cost: $137,233,568)			141,310,098


60		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	*Principal*		*Value*
SHORT-TERM INVESTMENTS – 7.55%

COMMERCIAL PAPER³ – 2.00%
Alpine Securitization Corp.
2.80%, 05/04/05	$	136,049	$	136,014
Amstel Funding Corp.
2.95%, 08/19/05		19,773		19,596
Amsterdam Funding Corp.
2.80% - 3.02%, 05/04/05 - 05/27/05		53,754		53,699
ANZ National Bank Ltd.
2.94%, 08/15/05		23,785		23,581
Blue Ridge Asset Funding Corp.
3.02%, 06/02/05		71,355		71,169
Bryant Park Funding LLC
2.75%, 05/03/05		9,514		9,513
Cancara Asset Securitisation LLC
2.80% - 2.97%, 05/03/05 - 05/23/05		157,764		157,724
Cantabric Finance LLC
3.04% - 3.12%, 06/28/05 - 07/25/05		59,462		59,075
Chariot Funding LLC
2.99%, 05/20/05		11,310		11,293
Charta LLC
2.99%, 06/16/05 - 06/21/05		99,896		99,501
Chesham Finance LLC
2.89% - 3.01%, 05/10/05 - 06/21/05		168,872		168,668
Corporate Asset Funding
2.75% - 2.99%, 05/05/05 - 06/16/05		88,004		87,792
CRC Funding LLC
2.95% - 3.00%, 05/02/05 - 06/29/05		83,247		83,113
DEPFA Bank PLC
2.28%, 05/03/05		23,785		23,783
Deutsche Bank Financial LLC
2.80%, 05/03/05		142,709		142,698
Edison Asset Securitization
2.26% - 3.12%, 05/03/05 - 09/06/05		161,737		161,333
Fairway Finance LLC
3.15%, 09/15/05		42,316		41,812
Falcon Asset Securitization Corp.
2.79% - 3.02%, 05/03/05 - 06/01/05		95,304		95,190
Ford Credit Auto Receivables
2.74%, 05/04/05		23,309		23,306
Fortis Funding LLC
2.35%, 05/09/05		66,598		66,567
Gemini Securitization Corp.
3.02%, 06/27/05		4,757		4,735
General Electric Capital Corp.
2.74%, 07/07/05		23,785		23,665
Georgetown Funding Co. LLC
2.81% - 3.05%, 05/03/05 - 06/16/05		104,653		104,511
Grampian Funding LLC
3.00% - 3.13%, 08/22/05 - 09/09/05		142,709		141,326
Jupiter Securization Corp.
2.99% - 3.02%, 05/19/05 - 06/03/05		192,029		191,647
Kitty Hawk Funding Corp.
2.88%, 05/04/05		35,922		35,917
Moat Funding LLC
2.74%, 05/02/05		33,299		33,299
Mortgage Interest Networking Trust
2.82% - 3.05%, 05/02/05 - 05/24/05		61,841		61,832
Nordea North America Inc.
2.74%, 07/11/05		23,785		23,658
Park Granada LLC
3.04%, 05/25/05 - 05/31/05		30,920		30,857
Ranger Funding Co. LLC
2.89% - 3.02%, 05/04/05 - 05/27/05		76,897		76,820
Santander Central Hispano
2.75%, 07/08/05		59,462		59,158
Scaldis Capital LLC
2.75% - 2.99%, 05/16/05 - 07/08/05		140,344		140,112


SCHEDULES OF INVESTMENTS		61

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	*Principal*		*Value*
Societe Generale
2.75% - 2.79%, 05/02/05 - 05/03/05	$	164,116	$	164,107
Sydney Capital Corp.
2.81%, 05/04/05		15,698		15,696
Tulip Funding Corp.
2.80% - 3.02%, 05/03/05 - 07/01/05		130,817		130,760
UBS Finance (Delaware)
2.79%, 05/04/05		38,056		38,050
Windmill Funding Corp.
2.80%, 05/04/05		14,699		14,697

				2,826,274

FLOATING RATE NOTES³ – 2.70%
Allstate Life Global Funding II
2.91%, 03/08/06⁴		21,882		21,883
American Express Centurion Bank
2.98% - 3.04%, 10/26/05 - 01/24/06		166,494		166,517
Bank of Nova Scotia
2.80% - 2.94%, 09/26/05 - 01/03/06		30,920		30,914
Beta Finance Inc.
2.81% - 3.16%, 05/04/05 - 04/25/06⁴		182,668		182,676
BMW US Capital LLC
2.92%, 04/18/06⁴		47,570		47,570
Canadian Imperial Bank of Commerce
2.86% - 3.00%, 09/13/05 - 12/14/05		161,737		161,714
CC USA Inc.
2.81% - 3.12%, 05/04/05 - 03/23/06⁴		123,681		123,677
Commodore CDO Ltd.
3.08%, 12/12/05		11,892		11,892
Den Danske Bank NY
2.85% - 2.96%, 08/12/05 - 10/17/05		142,709		142,694
DEPFA Bank PLC
2.99%, 03/15/06		47,570		47,570
Dorada Finance Inc.
3.00% - 3.12%, 07/29/05 - 03/27/06⁴		103,226		103,232
Fairway Finance LLC
2.94%, 06/20/05		23,785		23,785
Fifth Third Bancorp
2.98%, 02/23/06⁴		95,139		95,139
Five Finance Inc.
3.01%, 02/27/06⁴		23,785		23,787
General Electric Capital Corp.
3.01%, 05/09/06		21,406		21,432
General Electric Commercial Equipment Financing LLC
2.95%, 11/20/05		13,685		13,685
Greenwich Capital Holdings Inc.
2.83%, 09/02/05		30,920		30,920
Hartford Life Global Funding Trust
2.94%, 04/15/06		47,570		47,570
HBOS Treasury Services PLC
2.87% - 3.08%, 01/10/06 - 04/24/06		142,709		142,710
K2 USA LLC
2.87% - 3.11%, 06/10/05 - 02/15/06⁴		214,064		214,067
Leafs LLC
2.99%, 01/20/06 - 02/21/06⁴		49,948		49,948
Links Finance LLC
2.92% - 3.15%, 11/16/05 - 02/06/06⁴		99,896		99,934
Lothian Mortgages PLC
3.01%, 01/24/06⁴		71,355		71,355
Marshall & Ilsley Corp.
3.09%, 02/20/06		47,570		47,616
MetLife Global Funding I
2.86%, 05/05/06⁴		71,355		71,355
National City Bank (Ohio)
2.84% - 2.95%, 06/10/05 - 08/09/05		118,924		118,920
Nationwide Building Society
2.89% - 3.12%, 01/13/06 - 04/28/06⁴		176,008		176,039


62		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	*Principal*		*Value*
Norddeutsche Landesbank
3.11%, 07/27/05	$	47,570	$	47,566
Northern Rock PLC
2.88% - 2.99%, 10/25/05 - 02/03/06⁴		142,709		142,709
Permanent Financing PLC
2.87% - 2.89%, 06/10/05 - 03/10/06		168,872		168,872
Royal Bank of Scotland
2.79% - 2.91%, 06/20/05 - 04/05/06		64,576		64,556
Sedna Finance Inc.
2.92%, 01/10/06 - 01/17/06⁴		26,163		26,158
Sigma Finance Inc.
2.82% - 3.16%, 08/17/05 - 01/09/06⁴		242,606		242,612
Societe Generale
2.99%, 03/30/06		40,434		40,422
SunTrust Bank
3.17%, 04/28/06		71,355		71,355
Tango Finance Corp.
2.74% - 2.99%, 05/17/05 - 09/15/05⁴		128,914		128,911
Wachovia Asset Securitization Inc.
3.00% - 3.01%, 05/25/05		129,577		129,577
Wells Fargo & Co.
2.92%, 05/15/06⁴		23,785		23,788
WhistleJacket Capital LLC
2.86% - 2.97%, 06/15/05 - 01/17/06⁴		166,494		166,485
White Pine Finance LLC
2.80% - 3.09%, 05/20/05 - 01/13/06⁴		204,074		204,060
Windmill Funding Corp.
2.78%, 05/03/05		33,299		33,296
Winston Funding Ltd.
3.22%, 07/23/05⁴		33,965		33,965
World Savings Bank
2.86%, 09/09/05		16,649		16,649

				3,829,582

*Security*	Shares or Principal		*Value*
MONEY MARKET FUNDS – 0.25%
Barclays Global Investors Funds Government Money Market Fund, Institutional Shares^3,5		190,279	$	190,279
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares⁵		134,288		134,288
BlackRock Temp Cash Money Market Fund³		6,891		6,891
Short-Term Investment Co. - Prime Money Market Portfolio, Institutional Shares³		19,274		19,274

				350,732

REPURCHASE AGREEMENTS³ – 1.53%
Bank of America N.A. Repurchase Agreement, dated 4/29/05, due 5/2/05, with a maturity value of $1,189,537 and an effective yield of 2.97%.⁶	$	1,189,243		1,189,243
Goldman Sachs & Co. Repurchase Agreements, dated 4/29/05, due 5/2/05, with a total maturity value of $578,434 and effective yields of 2.96% - 3.00%.⁶		578,291		578,291
Merrill Lynch Government Securities Inc. Repurchase Agreements, dated 4/29/05, due 5/2/05, with a total maturity value of $403,894 and effective yields of 2.96% - 3.00%.⁶		403,794		403,794

				2,171,328

TIME DEPOSITS³ – 1.00%
American Express Centurion Bank
3.00%, 05/25/05		118,924		118,924
Banco Bilbao Vizcaya Argentaria SA
3.03% - 3.18%,06/27/05 - 09/14/05		68,976		68,976
BNP Paribas (New York)
2.78% - 3.03%,07/11/05 - 08/23/05		66,598		66,598


SCHEDULES OF INVESTMENTS		63

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	*Principal*		*Value*
Credit Suisse First Boston
2.75% - 2.81%, 05/03/05	$	61,841	$	61,841
Dexia Credit Local SA
2.81% - 3.01%, 05/04/05 - 06/21/05		92,761		92,762
First Tennessee Bank
3.00% - 3.04%, 06/14/05 - 06/27/05		83,247		83,247
HBOS Treasury Services PLC
3.39%, 12/14/05		28,542		28,542
Natexis Banques
2.98%, 08/18/05		47,570		47,570
Norddeutsche Landesbank
2.11%, 06/07/05		47,570		47,569
Societe Generale
2.81%, 05/03/05		33,299		33,299
SunTrust Bank
2.68%, 05/03/05		47,570		47,570
Svenska Handelsbanken AB
3.00%, 06/20/05		23,785		23,785
Toronto-Dominion Bank
1.77% - 3.18%, 05/10/05 - 11/09/05		145,088		145,084
UBS AG
2.67% - 3.40%, 11/09/05 - 12/15/05		38,056		38,055
Washington Mutual Bank
2.81% - 3.15%, 05/02/05 - 07/28/05		306,825		306,825
Wells Fargo Bank N.A.
3.04%, 06/29/05		142,709		142,709
World Savings Bank
2.75%, 05/03/05		66,598		66,598

				1,419,954

U.S. GOVERNMENT AGENCY NOTES³ – 0.07%
Federal Home Loan Mortgage Corp.
2.06%, 05/31/05		23,715		23,676
Federal National Mortgage Association
2.33%, 07/22/05		71,355		70,982

				94,658

TOTAL SHORT-TERM INVESTMENTS (Cost: $10,692,528)				10,692,528

TOTAL INVESTMENTS IN SECURITIES – 107.31% (Cost: $147,926,096)				152,002,626
Other Assets, Less Liabilities – (7.31%)				(10,357,879	)

NET ASSETS – 100.00%			$	141,644,747

¹	All or a portion of this security represents a security on loan. See Note 5.

²	Non-income earning security.

³	All or a portion of this security (these securities) represent(s) an investment of securities lending collateral. See Note 5.

⁴	All or a portion of this security is 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	The Fund’s investment adviser is an affiliate of the issuer. See Note 2.

⁶	Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 3.12% to 7.13% and maturity dates ranging from 5/25/05 to 8/1/42.

See notes to financial statements.


64		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

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

April 30, 2005


*Security*	*Shares*	*Value*
COMMON STOCKS – 99.81%

DIVERSIFIED FINANCIAL SERVICES – 0.42%
Friedman, Billings, Ramsey Group Inc. Class A	253,465	$	3,064,392

			3,064,392

LODGING – 0.29%
La Quinta Corp.¹	248,346		2,160,610

			2,160,610

REAL ESTATE – 2.02%
St. Joe Co. (The)²	214,078		14,897,688

			14,897,688

REAL ESTATE INVESTMENT TRUSTS – 97.08%
Alexandria Real Estate Equities Inc.²	57,552		3,960,729
AMB Property Corp.²	249,976		9,746,564
American Financial Realty Trust²	414,544		6,354,960
Annaly Mortgage Management Inc.²	475,011		9,082,210
Apartment Investment & Management Co. Class A	296,819		11,314,740
Archstone-Smith Trust	602,305		21,664,911
Arden Realty Group Inc.²	191,758		6,843,843
AvalonBay Communities Inc.	216,409		15,581,448
Boston Properties Inc.²	311,099		20,678,751
Brandywine Realty Trust²	163,197		4,618,475
BRE Properties Inc. Class A²	154,705		5,758,120
Camden Property Trust²	152,186		7,761,486
Capital Automotive REIT²	129,601		4,403,842
CarrAmerica Realty Corp.²	158,752		5,245,166
Catellus Development Corp.	269,488		7,464,818
CBL & Associates Properties Inc.²	87,244		6,750,068
CenterPoint Properties Trust²	147,101		6,062,032
Colonial Properties Trust	79,040		3,054,896
Cousins Properties Inc.²	120,091		3,242,457
Crescent Real Estate Equities Co.²	305,019		5,124,319
CRT Properties Inc.²	95,585		2,207,058
Developers Diversified Realty Corp.²	311,397		13,215,689
Duke Realty Corp.	428,930		13,125,258
Equity Inns Inc.²	157,197		1,770,038
Equity Lifestyle Properties Inc.²	65,682		2,403,961
Equity Office Properties Trust	1,195,636		37,626,665
Equity Residential	839,857		28,849,088
Essex Property Trust Inc.²	65,579		4,980,725
Federal Realty Investment Trust²	160,566		8,590,281
FelCor Lodging Trust Inc.^1,2	161,399		1,975,524
First Industrial Realty Trust Inc.²	125,289		4,786,040
Gables Residential Trust²	88,607		3,247,447
General Growth Properties Inc.²	709,294		27,740,488
Glenborough Realty Trust Inc.²	110,085		2,261,146
Health Care Property Investors Inc.	402,267		10,314,126
Health Care REIT Inc.²	158,472		5,308,812
Healthcare Realty Trust Inc.²	138,540		5,349,029
Highwoods Properties Inc.²	164,605		4,630,339
Home Properties Inc.	97,275		4,070,959
Hospitality Properties Trust	181,009		7,562,556
Host Marriott Corp.	983,725		16,546,254
HRPT Properties Trust²	576,198		6,770,326
Impac Mortgage Holdings Inc.	111,283		2,038,705
iStar Financial Inc.	338,001		13,465,960
Kilroy Realty Corp.²	85,609		3,735,121
Kimco Realty Corp.	270,743		14,996,455
Liberty Property Trust	257,795		10,267,975
Macerich Co. (The)	179,600		10,829,880
Mack-Cali Realty Corp.	171,992		7,565,928
Meristar Hospitality Corp.¹	332,959		2,280,769
Mills Corp.²	182,058		10,402,794
Nationwide Health Properties Inc.	204,072		4,373,263
New Century Financial Corp.	110,482		5,021,407
New Plan Excel Realty Trust Inc.²	304,471		7,858,397
Novastar Financial Inc.²	55,897		1,995,523
Pan Pacific Retail Properties Inc.	125,695		7,594,492
Pennsylvania Real Estate Investment Trust²	113,535		4,785,500
Plum Creek Timber Co. Inc.	555,218		19,177,230
Post Properties Inc.²	119,830		3,904,061
Prentiss Properties Trust²	119,578		3,972,381
ProLogis	556,519		22,032,587
Public Storage Inc.²	237,147		13,920,529
Rayonier Inc.²	147,358		7,406,213
Realty Income Corp.²	243,134		5,861,961
Reckson Associates Realty Corp.	240,984		7,771,734
Redwood Trust Inc.²	104,642		5,244,657
Regency Centers Corp.²	176,882		9,312,837


SCHEDULES OF INVESTMENTS		65

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	Shares or Principal		*Value*
Saxon Capital Inc.²		73,165	$	1,258,438
Shurgard Storage Centers Inc. Class A		141,066		5,900,791
Simon Property Group Inc.		649,639		42,921,649
SL Green Realty Corp.		118,336		7,218,496
Taubman Centers Inc.²		154,973		4,587,201
Thornburg Mortgage Inc.²		291,316		8,727,827
Trizec Properties Inc.		279,760		5,592,402
United Dominion Realty Trust Inc.		406,759		9,009,712
Ventas Inc.		254,945		6,878,416
Vornado Realty Trust²		349,643		26,730,207
Washington Real Estate Investment Trust²		126,077		3,758,355
Weingarten Realty Investors		243,816		8,779,814

				715,225,311

TOTAL COMMON STOCKS (Cost: $757,100,746)				735,348,001

SHORT-TERM INVESTMENTS – 21.13%

COMMERCIAL PAPER³ – 5.61%
Alpine Securitization Corp.
2.80%, 05/04/05	$	1,989,946		1,989,636
Amstel Funding Corp.
2.95%, 08/19/05		289,210		286,627
Amsterdam Funding Corp.
2.80% - 3.02%, 05/04/05 - 05/27/05		786,237		785,433
ANZ National Bank Ltd.
2.94%, 08/15/05		347,893		344,915
Blue Ridge Asset Funding Corp.
3.02%, 06/02/05		1,043,678		1,040,964
Bryant Park Funding LLC
2.75%, 05/03/05		139,157		139,146
Cancara Asset Securitisation LLC
2.80% - 2.97%, 05/03/05 - 05/23/05		2,307,565		2,306,981
Cantabric Finance LLC
3.04% - 3.12%, 06/28/05 - 07/25/05		869,732		864,054
Chariot Funding LLC
2.99%, 05/20/05		165,430		165,183

*Security*	*Principal*		*Value*
Charta LLC
2.99%, 06/16/05 - 06/21/05	$	1,461,149	$	1,455,374
Chesham Finance LLC
2.89% - 3.01%, 05/10/05 - 06/21/05		2,470,038		2,467,031
Corporate Asset Funding
2.75% - 2.99%, 05/05/05 - 06/16/05		1,287,203		1,284,105
CRC Funding LLC
2.95% - 3.00%, 05/02/05 - 06/29/05		1,217,624		1,215,657
DEPFA Bank PLC
2.28%, 05/03/05		347,893		347,871
Deutsche Bank Financial LLC
2.80%, 05/03/05		2,087,356		2,087,193
Edison Asset Securitization
2.26% - 3.12%, 05/03/05 - 09/06/05		2,365,670		2,359,742
Fairway Finance LLC
3.15%, 09/15/05		618,936		611,570
Falcon Asset Securitization Corp.
2.79% - 3.02%, 05/03/05 - 06/01/05		1,393,985		1,392,320
Ford Credit Auto Receivables
2.74%, 05/04/05		340,935		340,883
Fortis Funding LLC
2.35%, 05/09/05		974,099		973,654
Gemini Securitization Corp.
3.02%, 06/27/05		69,579		69,252
General Electric Capital Corp.
2.74%, 07/07/05		347,893		346,145
Georgetown Funding Co. LLC
2.81% - 3.05%, 05/03/05 - 06/16/05		1,530,727		1,528,644
Grampian Funding LLC
3.00% - 3.13%, 08/22/05 - 09/09/05		2,087,356		2,067,121
Jupiter Securization Corp.
2.99% - 3.02%, 05/19/05 - 06/03/05		2,808,746		2,803,137


66		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	*Principal*		*Value*
Kitty Hawk Funding Corp.
2.88%, 05/04/05	$	525,422	$	525,338
Moat Funding LLC
2.74%, 05/02/05		487,050		487,050
Mortgage Interest Networking Trust
2.82% - 3.05%, 05/02/05 - 05/24/05		904,521		904,397
Nordea North America Inc.
2.74%, 07/11/05		347,893		346,039
Park Granada LLC
3.04%, 05/25/05 - 05/31/05		452,260		451,329
Ranger Funding Co. LLC
2.89% - 3.02%, 05/04/05 - 05/27/05		1,124,744		1,123,602
Santander Central Hispano
2.75%, 07/08/05		869,732		865,289
Scaldis Capital LLC
2.75% - 2.99%, 05/16/05 - 07/08/05		2,052,761		2,049,365
Societe Generale
2.75% - 2.79%, 05/02/05 - 05/03/05		2,400,459		2,400,330
Sydney Capital Corp.
2.81%, 05/04/05		229,609		229,573
Tulip Funding Corp.
2.80% - 3.02%, 05/03/05 - 07/01/05		1,913,409		1,912,570
UBS Finance (Delaware)
2.79%, 05/04/05		556,628		556,542
Windmill Funding Corp.
2.80%, 05/04/05		214,998		214,964

				41,339,026

FLOATING RATE NOTES³ – 7.60%
Allstate Life Global Funding II
2.91%, 03/08/06⁴		320,061		320,070
American Express Centurion Bank
2.98% - 3.04%, 10/26/05 - 01/24/06		2,435,248		2,435,586
Bank of Nova Scotia
2.80% - 2.94%, 09/26/05 - 01/03/06		452,260		452,171
Beta Finance Inc.
2.81% - 3.16%, 05/04/05 - 04/25/06⁴		2,671,815		2,671,939
BMW US Capital LLC
2.92%, 04/18/06⁴		695,785		695,785
Canadian Imperial Bank of Commerce
2.86% - 3.00%, 09/13/05 - 12/14/05		2,365,670		2,365,330
CC USA Inc.
2.81% - 3.12%, 05/04/05 - 03/23/06⁴		1,809,042		1,808,973
Commodore CDO Ltd.
3.08%, 12/12/05		173,946		173,947
Den Danske Bank NY
2.85% - 2.96%, 08/12/05 - 10/17/05		2,087,356		2,087,136
DEPFA Bank PLC
2.99%, 03/15/06		695,785		695,785
Dorada Finance Inc.
3.00% - 3.12%, 07/29/05 - 03/27/06⁴		1,509,854		1,509,925
Fairway Finance LLC
2.94%, 06/20/05		347,893		347,888
Fifth Third Bancorp
2.98%, 02/23/06⁴		1,391,570		1,391,570
Five Finance Inc.
3.01%, 02/27/06⁴		347,893		347,930
General Electric Capital Corp.
3.01%, 05/09/06		313,103		313,482
General Electric Commercial Equipment Financing LLC
2.95%, 11/20/05		200,172		200,172
Greenwich Capital Holdings Inc.
2.83%, 09/02/05		452,260		452,260
Hartford Life Global Funding Trust
2.94%, 04/15/06		695,785		695,785
HBOS Treasury Services PLC
2.87% - 3.08%, 01/10/06 - 04/24/06		2,087,356		2,087,355


SCHEDULES OF INVESTMENTS		67

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	*Principal*		*Value*
K2 USA LLC
2.87% - 3.11%, 06/10/05 - 02/15/06⁴	$	3,131,034	$	3,131,090
Leafs LLC
2.99%, 01/20/06 - 02/21/06⁴		730,574		730,575
Links Finance LLC
2.92% - 3.15%, 11/16/05 - 02/06/06⁴		1,461,149		1,461,702
Lothian Mortgages PLC
3.01%, 01/24/06⁴		1,043,678		1,043,678
Marshall & Ilsley Corp.
3.09%, 02/20/06		695,785		696,455
MetLife Global Funding I
2.86%, 05/05/06⁴		1,043,678		1,043,678
National City Bank (Ohio)
2.84% - 2.95%, 06/10/05 - 08/09/05		1,739,463		1,739,388
Nationwide Building Society
2.89% - 3.12%, 01/13/06 - 04/28/06⁴		2,574,405		2,574,854
Norddeutsche Landesbank
3.11%, 07/27/05		695,785		695,728
Northern Rock PLC
2.88% - 2.99%, 10/25/05 - 02/03/06⁴		2,087,356		2,087,355
Permanent Financing PLC
2.87% - 2.89%, 06/10/05 - 03/10/06		2,470,038		2,470,038
Royal Bank of Scotland
2.79% - 2.91%, 06/20/05 - 04/05/06		944,528		944,234
Sedna Finance Inc.
2.92%, 01/10/06 - 01/17/06⁴		382,682		382,609
Sigma Finance Inc.
2.82% - 3.16%, 08/17/05 - 01/09/06⁴		3,548,505		3,548,612
Societe Generale
2.99%, 03/30/06		591,417		591,236
SunTrust Bank
3.17%, 04/28/06		1,043,678		1,043,678

*Security*	Shares or Principal		*Value*
Tango Finance Corp.
2.74% - 2.99%, 05/17/05 - 09/15/05⁴	$	1,885,578	$	1,885,525
Wachovia Asset Securitization Inc.
3.00% - 3.01%, 05/25/05		1,895,271		1,895,272
Wells Fargo & Co.
2.92%, 05/15/06⁴		347,893		347,936
WhistleJacket Capital LLC
2.86% - 2.97%, 06/15/05 - 01/17/06⁴		2,435,248		2,435,093
White Pine Finance LLC
2.80% - 3.09%, 05/20/05 - 01/13/06⁴		2,984,919		2,984,721
Windmill Funding Corp.
2.78%, 05/03/05		487,050		487,012
Winston Funding Ltd.
3.22%, 07/23/05⁴		496,791		496,791
World Savings Bank
2.86%, 09/09/05		243,525		243,516

				56,013,865

MONEY MARKET FUNDS – 0.60%
Barclays Global Investors Funds Government Money Market Fund, Institutional Shares^3,5		2,783,141		2,783,141
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares⁵		1,287,290		1,287,290
BlackRock Temp Cash Money Market Fund³		100,790		100,790
Short-Term Investment Co. - Prime Money Market Portfolio, Institutional Shares³		281,904		281,904

				4,453,125

REPURCHASE AGREEMENTS³ – 4.31%
Bank of America N.A. Repurchase Agreement, dated 4/29/05, due 5/2/05, with a maturity value of $17,398,935 and an effective yield of 2.97%.⁶	$	17,394,630		17,394,630


68		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	*Principal*		*Value*
Goldman Sachs & Co. Repurchase Agreements, dated 4/29/05, due 5/2/05, with a total maturity value of $8,460,543 and effective yields of 2.96% - 3.00%.⁶	$	8,458,452	$	8,458,452
Merrill Lynch Government Securities Inc. Repurchase Agreements, dated 4/29/05, due 5/2/05, with a total maturity value of $5,907,616 and effective yields of 2.96% - 3.00%.⁶		5,906,152		5,906,152

				31,759,234

TIME DEPOSITS³ – 2.82%
American Express Centurion Bank
3.00%, 05/25/05		1,739,463		1,739,463
Banco Bilbao Vizcaya Argentaria SA
3.03% - 3.18%, 06/27/05 - 09/14/05		1,008,889		1,008,888
BNP Paribas (New York)
2.78% - 3.03%, 07/11/05 - 08/23/05		974,099		974,099
Credit Suisse First Boston
2.75% - 2.81%, 05/03/05		904,521		904,521
Dexia Credit Local SA
2.81% - 3.01%, 05/04/05 - 06/21/05		1,356,781		1,356,785
First Tennessee Bank
3.00% - 3.04%, 06/14/05 - 06/27/05		1,217,624		1,217,624
HBOS Treasury Services PLC
3.39%, 12/14/05		417,471		417,471
Natexis Banques
2.98%, 08/18/05		695,785		695,785
Norddeutsche Landesbank
2.11%, 06/07/05		695,785		695,772
Societe Generale
2.81%, 05/03/05		487,050		487,050
SunTrust Bank
2.68%, 05/03/05		695,785		695,783
Svenska Handelsbanken AB
3.00%, 06/20/05		347,893		347,893
Toronto-Dominion Bank
1.77% - 3.18%, 05/10/05 - 11/09/05		2,122,145		2,122,096
UBS AG
2.67% - 3.40%, 11/09/05 - 12/15/05		556,628		556,623
Washington Mutual Bank
2.81% - 3.15%, 05/02/05 - 07/28/05		4,487,815		4,487,816
Wells Fargo Bank N.A.
3.04%, 06/29/05		2,087,356		2,087,356
World Savings Bank
2.75%, 05/03/05		974,099		974,099

				20,769,124

U.S. GOVERNMENT AGENCY NOTES³ – 0.19%
Federal Home Loan Mortgage Corp.
2.06%, 05/31/05		346,870		346,295
Federal National Mortgage Association
2.33%, 07/22/05		1,043,678		1,038,219

				1,384,514

TOTAL SHORT-TERM INVESTMENTS (Cost: $155,718,888)				155,718,888

TOTAL INVESTMENTS IN SECURITIES – 120.94% (Cost: $912,819,634)				891,066,889
Other Assets, Less Liabilities – (20.94%)				(154,283,500	)

NET ASSETS – 100.00%			$	736,783,389

¹	Non-income earning security.

²	All or a portion of this security represents a security on loan. See Note 5.

³	All or a portion of this security (these securities) represent(s) an investment of securities lending collateral. See Note 5.

⁴	All or a portion of this security is 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	The Fund’s investment adviser is an affiliate of the issuer. See Note 2.

⁶	Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 3.12% to 7.13% and maturity dates ranging from 5/25/05 to 8/1/42.

See notes to financial statements.


SCHEDULES OF INVESTMENTS		69

Schedule of Investments

iSHARES^® KLD SELECT SOCIAL^SM INDEX FUND

April 30, 2005


*Security*	*Shares*	*Value*
COMMON STOCKS – 99.90%

ADVERTISING – 0.21%
Getty Images Inc.¹	1,018	$	72,838
Lamar Advertising Co.¹	337		12,597

			85,435

AEROSPACE & DEFENSE – 1.24%
Boeing Co. (The)	527		31,367
Raytheon Co.	1,020		38,362
Rockwell Collins Inc.	631		28,950
United Technologies Corp.	4,092		416,238

			514,917

AIRLINES – 0.47%
JetBlue Airways Corp.¹	236		4,732
Southwest Airlines Co.	12,772		190,047

			194,779

APPAREL – 0.12%
Nike Inc. Class B	393		30,186
Reebok International Ltd.	219		8,894
Timberland Co. Class A¹	158		10,910

			49,990

AUTO MANUFACTURERS – 0.11%
Ford Motor Co.	5,122		46,661

			46,661

AUTO PARTS & EQUIPMENT – 0.11%
Cooper Tire & Rubber Co.	236		4,118
Delphi Corp.	12,562		41,455

			45,573

BANKS – 12.87%
Bank of America Corp.	25,427		1,145,232
Bank of Hawaii Corp.	202		9,565
Comerica Inc.	2,719		155,690
First Horizon National Corp.	11,339		470,909
M&T Bank Corp.	4,038		417,731
Northern Trust Corp.	3,055		137,567
PNC Financial Services Group	4,782		254,546
Regions Financial Corp.	1,842		61,689
State Street Corp.	1,572		72,674
TD Banknorth Inc.¹	13,681		421,375
U.S. Bancorp	3,745		104,486
Wells Fargo & Co.	35,211		2,110,547

			5,362,011

BEVERAGES – 0.01%
Coca-Cola Enterprises Inc.	298		6,049

			6,049

BIOTECHNOLOGY – 2.83%
Amgen Inc.¹	11,394		663,245
Biogen Idec Inc.¹	1,138		41,241
Genentech Inc.¹	4,650		329,871
Genzyme Corp.¹	698		40,910
Millipore Corp.¹	2,047		98,706
Nektar Therapeutics¹	272		3,879

			1,177,852

BUILDING MATERIALS – 0.16%
Florida Rock Industries Inc.	1,140		66,211

			66,211

CHEMICALS – 2.66%
Ecolab Inc.	18,115		592,542
Praxair Inc.	5,651		264,636
Rohm & Haas Co.	5,764		251,656

			1,108,834

COMMERCIAL SERVICES – 0.24%
BearingPoint Inc.¹	852		5,274
Convergys Corp.¹	562		7,284
Deluxe Corp.	906		36,177
Laureate Education Inc.¹	219		9,728
Paychex Inc.	680		20,808
Service Corp. International	1,077		7,582
ServiceMaster Co. (The)	951		12,201

			99,054

COMPUTERS – 2.45%
Apple Computer Inc.¹	2,687		96,893
Cadence Design Systems Inc.¹	918		12,852
Electronic Data Systems Corp.	2,456		47,524
EMC Corp.¹	2,802		36,762
Hewlett-Packard Co.	29,141		596,516
Lexmark International Inc.¹	785		54,518
Maxtor Corp.¹	1,034		5,015
National Instruments Corp.	3,107		66,925
Network Appliance Inc.¹	1,088		28,973
Sun Microsystems Inc.¹	11,305		41,037
SunGard Data Systems Inc.¹	1,071		35,771

			1,022,786


70		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® KLD SELECT SOCIAL^SMINDEX FUND

April 30, 2005


*Security*	*Shares*	*Value*
COSMETICS & PERSONAL CARE – 4.58%
Avon Products Inc.	7,452	$	298,676
Gillette Co. (The)	4,219		217,869
Procter & Gamble Co.	25,737		1,393,659

			1,910,204

DISTRIBUTION & WHOLESALE – 0.37%
Fastenal Co.	2,848		152,539

			152,539

DIVERSIFIED FINANCIAL SERVICES – 7.10%
Chicago Mercantile Exchange Holdings Inc.	32		6,257
Doral Financial Corp.	2,347		32,975
Federal Home Loan Mortgage Corp.	9,344		574,843
Federal National Mortgage Association	19,134		1,032,279
Instinet Group Inc.¹	1,306		6,857
MBNA Corp.	16,538		326,626
Nuveen Investments Inc. Class A	24,893		846,113
Schwab (Charles) Corp. (The)	5,291		54,762
SLM Corp.	1,623		77,320

			2,958,032

ELECTRIC – 0.37%
Calpine Corp.¹	2,058		3,684
Northeast Utilities	459		8,404
Pinnacle West Capital Corp.	1,218		51,034
Reliant Energy Inc.¹	873		8,878
TXU Corp.	938		80,471

			152,471

ELECTRONICS – 0.96%
Agilent Technologies Inc.¹	1,989		41,272
Applera Corp. - Applied Biosystems Group	1,306		27,687
Arrow Electronics Inc.¹	5,289		128,734
Avnet Inc.¹	729		13,771
PerkinElmer Inc.	443		8,196
Sanmina-SCI Corp.¹	1,718		6,889
Thermo Electron Corp.¹	6,898		172,312

			398,861

FOOD – 3.41%
General Mills Inc.	21,928		1,083,243
SUPERVALU Inc.	1,072		33,832
Whole Foods Market Inc.	3,044		303,548

			1,420,623

FOREST PRODUCTS & PAPER – 0.17%
International Paper Co.	984		33,741
Temple-Inland Inc.	1,150		38,813

			72,554

HEALTH CARE - PRODUCTS – 5.61%
Baxter International Inc.	18,141		673,031
Edwards Lifesciences Corp.¹	290		12,772
Guidant Corp.	3,320		245,946
Johnson & Johnson	14,195		974,203
Medtronic Inc.	5,862		308,927
Zimmer Holdings Inc.¹	1,522		123,921

			2,338,800

HEALTH CARE - SERVICES – 0.75%
Aetna Inc.	374		27,440
PacifiCare Health Systems Inc.¹	937		55,995
UnitedHealth Group Inc.	1,026		96,967
WellPoint Inc.¹	1,029		131,455

			311,857

HOME BUILDERS – 0.14%
Centex Corp.	96		5,541
D.R. Horton Inc.	1,373		41,877
Pulte Homes Inc.	156		11,146

			58,564

HOME FURNISHINGS – 1.14%
Harman International Industries Inc.	151		11,866
Whirlpool Corp.	7,479		464,147

			476,013

HOUSEHOLD PRODUCTS & WARES – 0.17%
Avery Dennison Corp.	1,384		72,452

			72,452

INSURANCE – 5.58%
CIGNA Corp.	995		91,520
Cincinnati Financial Corp.	9,076		365,218
Hartford Financial Services Group Inc.	2,765		200,103
MBIA Inc.	1,464		76,684
Nationwide Financial Services Inc.	6,742		238,869
Principal Financial Group Inc.	1,074		41,972
Prudential Financial Inc.	4,072		232,715
SAFECO Corp.	3,410		179,605
St. Paul Travelers Companies Inc.	24,243		867,899


SCHEDULES OF INVESTMENTS		71

Schedule of Investments (Continued)

iSHARES^® KLD SELECT SOCIAL^SMINDEX FUND

April 30, 2005


*Security*	*Shares*	*Value*
UNUMProvident Corp.	1,069	$	17,874
Wesco Financial Corp.	28		10,584

			2,323,043

INTERNET – 1.76%
Amazon.com Inc.¹	3,321		107,468
eBay Inc.¹	4,185		132,790
Google Inc. Class A¹	536		117,920
IAC/InterActiveCorp¹	1,753		38,110
Symantec Corp.¹	7,522		141,263
Yahoo! Inc.¹	5,718		197,328

			734,879

INVESTMENT COMPANIES – 0.09%
Allied Capital Corp.	1,374		37,785

			37,785

IRON & STEEL – 0.20%
Allegheny Technologies Inc.	394		8,826
Nucor Corp.	814		41,595
United States Steel Corp.	749		32,027

			82,448

LEISURE TIME – 0.02%
Sabre Holdings Corp.	440		8,606

			8,606

LODGING – 0.88%
Caesars Entertainment Inc.¹	1,034		20,628
Marriott International Inc. Class A	5,516		346,129

			366,757

MACHINERY – 0.87%
Cummins Inc.	2,880		195,840
Deere & Co.	954		59,663
Graco Inc.	3,157		106,612

			362,115

MANUFACTURING – 4.50%
Donaldson Co. Inc.	2,921		86,900
Eastman Kodak Co.	935		23,375
General Electric Co.	25,385		918,937
SPX Corp.	1,023		39,580
3M Co.	10,548		806,606

			1,875,398

MEDIA – 3.87%
Comcast Corp. Class A¹	10,938		351,219
Liberty Media Corp. Class A	8,912		89,477
Liberty Media International Inc. Class A¹	66		2,737
New York Times Co. Class A	12,184		406,458
Radio One Inc. Class D¹	290		3,790
Sirius Satellite Radio Inc.¹	5,881		27,994
UnitedGlobalCom Inc. Class A¹	965		8,637
Univision Communications Inc. Class A¹	13,827		363,512
Washington Post Co. (The) Class B	416		359,528

			1,613,352

METAL FABRICATE & HARDWARE – 0.22%
Worthington Industries Inc.	5,615		91,300

			91,300

MINING – 0.01%
Alcoa Inc.	195		5,659

			5,659

OFFICE & BUSINESS EQUIPMENT – 1.55%
IKON Office Solutions Inc.	562		4,861
Pitney Bowes Inc.	8,447		377,750
Xerox Corp.¹	19,783		262,125

			644,736

OFFICE FURNISHINGS – 0.15%
Herman Miller Inc.	2,172		62,119

			62,119

OIL & GAS – 5.75%
Apache Corp.	3,938		221,670
Chesapeake Energy Corp.	883		16,989
ChevronTexaco Corp.	5,594		290,888
Devon Energy Corp.	1,463		66,084
EOG Resources Inc.	1,376		65,429
Exxon Mobil Corp.	17,052		972,476
Newfield Exploration Co.¹	1,149		81,613
Noble Corp.	1,136		57,822
Noble Energy Inc.	1,241		79,573
Patina Oil & Gas Corp.	1,504		57,754
Pioneer Natural Resources Co.	6,080		247,213
Pride International Inc.¹	473		10,548
Transocean Inc.¹	825		38,255
Valero Energy Corp.	2,287		156,728
XTO Energy Inc.	1,155		34,846

			2,397,888


72		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® KLD SELECT SOCIAL^SMINDEX FUND

April 30, 2005


*Security*	*Shares*	*Value*
OIL & GAS SERVICES – 0.35%
Schlumberger Ltd.	443	$	30,306
Smith International Inc.	1,885		109,669
Tidewater Inc.	190		6,549

			146,524

PHARMACEUTICALS – 3.76%
American Pharmaceutical Partners Inc.¹	231		12,040
Bristol-Myers Squibb Co.	25,058		651,508
Caremark Rx Inc.¹	341		13,657
Eon Labs Inc.¹	172		5,139
Forest Laboratories Inc.¹	1,904		67,935
Lilly (Eli) & Co.	82		4,795
Medco Health Solutions Inc.¹	938		47,810
Merck & Co. Inc.	6,431		218,011
OSI Pharmaceuticals Inc.¹	154		7,290
Pfizer Inc.	19,660		534,162
VCA Antech Inc.¹	118		2,747

			1,565,094

PIPELINES – 0.36%
Kinder Morgan Inc.	1,950		149,097

			149,097

REAL ESTATE INVESTMENT TRUSTS – 0.78%
Duke Realty Corp.	444		13,586
General Growth Properties Inc.	6,264		244,985
HRPT Properties Trust	698		8,202
Mills Corp.	151		8,628
Trizec Properties Inc.	36		720
Weingarten Realty Investors	1,410		50,774

			326,895

RETAIL – 3.53%
Barnes & Noble Inc.¹	237		8,437
Bed Bath & Beyond Inc.¹	1,040		38,698
Borders Group Inc.	282		6,822
CVS Corp.	1,193		61,535
Darden Restaurants Inc.	983		29,490
Dollar General Corp.	6,848		139,357
Family Dollar Stores Inc.	3,366		90,815
Gap Inc. (The)	6,279		134,057
Lowe’s Companies Inc.	271		14,122
McDonald’s Corp.	1,188		34,820
Nordstrom Inc.	1,088		55,303
Office Depot Inc.¹	1,104		21,616
PETsMART Inc.	2,048		54,579
Ruby Tuesday Inc.	290		6,525
Staples Inc.	19,435		370,625
Starbucks Corp.¹	5,710		282,759
Target Corp.	18		835
TJX Companies Inc.	1,841		41,699
Toys R Us Inc.¹	747		18,936
Wendy’s International Inc.	1,379		59,200

			1,470,230

SAVINGS & LOANS – 1.66%
Golden West Financial Corp.	1,234		76,915
Sovereign Bancorp Inc.	2,023		41,613
Washington Mutual Inc.	13,874		573,274

			691,802

SEMICONDUCTORS – 4.06%
Advanced Micro Devices Inc.¹	326		4,639
Agere Systems Inc. Class B¹	3,128		3,691
Altera Corp.¹	54		1,119
Applied Materials Inc.¹	9,320		138,588
Atmel Corp.¹	1,650		3,812
Intel Corp.	48,481		1,140,273
Lam Research Corp.¹	379		9,721
LSI Logic Corp.¹	1,260		6,754
Microchip Technology Inc.	1,770		50,410
Micron Technology Inc.¹	1,732		16,818
Rambus Inc.¹	354		5,034
Texas Instruments Inc.	9,639		240,589
Xilinx Inc.	2,635		70,987

			1,692,435

SOFTWARE – 6.52%
Acxiom Corp.	326		6,194
Adobe Systems Inc.	1,931		114,837
Autodesk Inc.	3,211		102,206
Automatic Data Processing Inc.	20		869
BEA Systems Inc.¹	20,537		141,705
BMC Software Inc.¹	806		13,057
Citrix Systems Inc.¹	458		10,305
Compuware Corp.¹	1,550		9,223
Electronic Arts Inc.¹	2,996		159,956


SCHEDULES OF INVESTMENTS		73

Schedule of Investments (Continued)

iSHARES^® KLD SELECT SOCIAL^SMINDEX FUND

April 30, 2005


*Security*	*Shares*		*Value*
Microsoft Corp^.		60,646	$	1,534,344
NAVTEQ Corp.¹		1,312		47,783
Novell Inc.¹		5,035		29,757
Oracle Corp.¹		17,844		206,277
Pixar Inc.¹		6,664		304,811
Red Hat Inc.¹		508		5,461
Siebel Systems Inc.¹		1,667		15,003
Total System Services Inc.		680		16,714

				2,718,502

TELECOMMUNICATIONS – 4.43%
ADC Telecommunications Inc.¹		3,092		7,019
American Tower Corp. Class A¹		728		12,543
AT&T Corp.		3,491		66,783
Avaya Inc.¹		1,225		10,633
BellSouth Corp.		972		25,748
CIENA Corp.¹		2,602		5,985
Cisco Systems Inc.¹		33,786		583,822
Corning Inc.¹		3,963		54,491
Crown Castle International Corp.¹		819		13,210
JDS Uniphase Corp.¹		5,132		7,595
Juniper Networks Inc.¹		1,800		40,662
Level 3 Communications Inc.^1,2		1,940		3,511
Lucent Technologies Inc.¹		21,264		51,672
Motorola Inc.		10,978		168,403
Nextel Communications Inc. Class A¹		4,151		116,187
Nextel Partners Inc. Class A¹		1,055		24,814
Plantronics Inc.		631		19,870
QUALCOMM Inc.		1,871		65,279
Tellabs Inc.¹		17,949		139,284
3Com Corp.¹		1,714		5,399
United States Cellular Corp.¹		238		10,996
Verizon Communications Inc.		11,553		413,597

				1,847,503

TRANSPORTATION – 0.75%
FedEx Corp.		3,676		312,276

				312,276

TOTAL COMMON STOCKS (Cost: $42,252,533)				41,629,565

*Security*	Shares or Principal		*Value*
SHORT-TERM INVESTMENTS – 0.04%

COMMERCIAL PAPER³ – 0.00%
Miscellaneous securities
2.26% - 3.15%, 05/02/05 - 09/15/05	$	94	$	96

				96

FLOATING RATE NOTES³ – 0.00%
Miscellaneous securities
2.74% - 3.22%, 05/03/05 - 05/15/06		150		158

				158

MONEY MARKET FUNDS – 0.04%
Barclays Global Investors Funds Government Money Market Fund, Institutional Shares^3,4		7		7
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares⁴		15,407		15,407
Short-Term Investment Co. - Prime Money Market Portfolio, Institutional Shares³		1		1

				15,415

REPURCHASE AGREEMENTS³ – 0.00%
Bank of America N.A. Repurchase Agreement, dated 4/29/05, due 5/2/05, with a maturity value of $47 and an effective yield of 2.97%.⁵	$	47		47
Goldman Sachs & Co. Repurchase Agreements, dated 4/29/05, due 5/2/05, with a total maturity value of $24 and effective yields of 2.96% - 3.00%.⁵		24		24
Merrill Lynch Government Securities Inc. Repurchase Agreements, dated 4/29/05, due 5/2/05, with a total maturity value of $16 and effective yields of 2.96% - 3.00%.⁵		16		16

				87


74		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® KLD SELECT SOCIAL^SMINDEX FUND

April 30, 2005


*Security*	*Principal*		*Value*
TIME DEPOSITS³ – 0.00%
Miscellaneous securities
1.77% - 3.40%, 05/02/05 - 12/15/05	$	56	$	59

				59

U.S. GOVERNMENT AGENCY NOTES³ – 0.00%
Miscellaneous securities
2.06% - 2.33%, 05/31/05 - 07/22/05		4		4

				4

TOTAL SHORT-TERM INVESTMENTS (Cost: $15,819)				15,819

TOTAL INVESTMENTS IN SECURITIES – 99.94% (Cost: $42,268,352)				41,645,384
Other Assets, Less Liabilities – 0.06%				23,385

NET ASSETS – 100.00%			$	41,668,769

¹	Non-income earning security.

²	All or a portion of this security represents a security on loan. See Note 5.

³	All or a portion of this security (these securities) represent(s) an investment of securities lending collateral. See Note 5.

⁴	The Fund’s investment adviser is an affiliate of the issuer. See Note 2.

⁵	Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 3.12% to 7.13% and maturity dates ranging from 5/25/05 to 8/1/42.

See notes to financial statements.


SCHEDULES OF INVESTMENTS		75

Schedule of Investments

iSHARES^® COHEN & STEERS REALTY MAJORS INDEX FUND

April 30, 2005


*Security*	*Shares*		*Value*
COMMON STOCKS – 98.51%

REAL ESTATE INVESTMENT TRUSTS – 98.51%
AMB Property Corp.¹		912,379	$	35,573,657
Archstone-Smith Trust		1,390,311		50,009,487
Arden Realty Group Inc.¹		719,159		25,666,785
AvalonBay Communities Inc.¹		690,703		49,730,616
Boston Properties Inc.¹		1,035,966		68,860,660
Camden Property Trust		112,038		5,713,938
CarrAmerica Realty Corp.¹		654,233		21,615,858
Catellus Development Corp.¹		708,991		19,639,051
CenterPoint Properties Trust¹		292,768		12,064,969
Cousins Properties Inc.¹		541,488		14,620,176
Developers Diversified Realty Corp.¹		614,305		26,071,104
Duke Realty Corp.¹		277,093		8,479,046
Equity Office Properties Trust		3,673,807		115,614,706
Equity Residential		1,790,901		61,517,449
Essex Property Trust Inc.¹		163,689		12,432,180
Federal Realty Investment Trust¹		102,163		5,465,720
General Growth Properties Inc.¹		1,230,750		48,134,632
Health Care Property Investors Inc.		289,554		7,424,165
Healthcare Realty Trust Inc.¹		158,079		6,103,430
Hospitality Properties Trust		156,934		6,556,703
Host Marriott Corp.¹		3,216,493		54,101,412
Kimco Realty Corp.¹		1,072,335		59,396,636
Liberty Property Trust		951,596		37,902,069
Macerich Co. (The)¹		330,371		19,921,371
Mack-Cali Realty Corp.		299,510		13,175,445
Mills Corp.¹		570,866		32,619,283
New Plan Excel Realty Trust Inc.¹		245,374		6,333,103
Pan Pacific Retail Properties Inc.		409,705		24,754,376
Prentiss Properties Trust¹		166,513		5,531,562
ProLogis		984,752		38,986,332
Public Storage Inc.¹		1,159,286		68,050,088
Realty Income Corp.¹		280,529		6,763,554
Reckson Associates Realty Corp.¹		890,318		28,712,755
Regency Centers Corp.		632,911		33,322,764
Simon Property Group Inc.		1,729,294		114,254,455
SL Green Realty Corp.		422,344		25,762,984
Vornado Realty Trust¹		1,180,826		90,274,148
Weingarten Realty Investors¹		487,148		17,542,200

TOTAL COMMON STOCKS (Cost: $1,129,344,959)				1,278,698,869

*Security*	*Shares or* *Principal*		*Value*
EXCHANGE-TRADED FUNDS – 0.86%
streetTRACKS Wilshire REIT Index Fund¹		61,000	$	11,169,100

TOTAL EXCHANGE-TRADED FUNDS (Cost: $15,229,412)				11,169,100

SHORT-TERM INVESTMENTS – 15.99%

COMMERCIAL PAPER²– 4.28%
Alpine Securitization Corp.
2.80%, 05/04/05	$	2,673,073		2,672,657
Amstel Funding Corp.
2.95%, 08/19/05		388,493		385,015
Amsterdam Funding Corp.
2.80% - 3.02%, 05/04/05 - 05/27/05		1,056,144		1,055,073
ANZ National Bank Ltd.
2.94%, 08/15/05		467,320		463,320
Blue Ridge Asset Funding Corp.
3.02%, 06/02/05		1,401,961		1,398,316
Bryant Park Funding LLC
2.75%, 05/03/05		186,928		186,914
Cancara Asset Securitisation LLC
2.80% - 2.97%, 05/03/05 - 05/23/05		3,099,727		3,098,944
Cantabric Finance LLC
3.04% - 3.12%, 06/28/05 - 07/25/05		1,168,301		1,160,675
Chariot Funding LLC
2.99%, 05/20/05		222,220		221,888
Charta LLC
2.99%, 06/16/05 - 06/21/05		1,962,746		1,954,990
Chesham Finance LLC
2.89% - 3.01%, 05/10/05 - 06/21/05		3,317,975		3,313,937
Corporate Asset Funding
2.75% - 2.99%, 05/05/05 - 06/16/05		1,729,086		1,724,926
CRC Funding LLC
2.95% - 3.00%, 05/02/05 - 06/29/05		1,635,622		1,632,979


76		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® COHEN & STEERS REALTY MAJORS INDEX FUND

April 30, 2005


*Security*	*Principal*		*Value*
DEPFA Bank PLC
2.28%, 05/03/05	$	467,320	$	467,291
Deutsche Bank Financial LLC
2.80%, 05/03/05		2,803,923		2,803,705
Edison Asset Securitization
2.26% - 3.12%, 05/03/05 - 09/06/05		3,177,779		3,169,818
Fairway Finance LLC
3.15%, 09/15/05		831,410		821,516
Falcon Asset Securitization Corp.
2.79% - 3.02%, 05/03/05 - 06/01/05		1,872,525		1,870,289
Ford Credit Auto Receivables
2.74%, 05/04/05		457,974		457,904
Fortis Funding LLC
2.35%, 05/09/05		1,308,497		1,307,899
Gemini Securitization Corp.
3.02%, 06/27/05		93,464		93,025
General Electric Capital Corp.
2.74%, 07/07/05		467,320		464,973
Georgetown Funding Co. LLC
2.81% - 3.05%, 05/03/05 - 06/16/05		2,056,210		2,053,410
Grampian Funding LLC
3.00% - 3.13%, 08/22/05 - 09/09/05		2,803,923		2,776,741
Jupiter Securization Corp.
2.99% - 3.02%, 05/19/05 - 06/03/05		3,772,959		3,765,425
Kitty Hawk Funding Corp.
2.88%, 05/04/05		705,794		705,681
Moat Funding LLC
2.74%, 05/02/05		654,249		654,249
Mortgage Interest Networking Trust
2.82% - 3.05%, 05/02/05 - 05/24/05		1,215,033		1,214,866
Nordea North America Inc.
2.74%, 07/11/05		467,320		464,831
Park Granada LLC
3.04%, 05/25/05 - 05/31/05		607,517		606,266
Ranger Funding Co. LLC
2.89% - 3.02%, 05/04/05 - 05/27/05		1,510,856		1,509,324
Santander Central Hispano
2.75%, 07/08/05		1,168,301		1,162,333
Scaldis Capital LLC
2.75% - 2.99%, 05/16/05 - 07/08/05		2,757,452		2,752,891
Societe Generale
2.75% - 2.79%, 05/02/05 - 05/03/05		3,224,511		3,224,340
Sydney Capital Corp.
2.81%, 05/04/05		308,432		308,383
Tulip Funding Corp.
2.80% - 3.02%, 05/03/05 - 07/01/05		2,570,263		2,569,135
UBS Finance (Delaware)
2.79%, 05/04/05		747,713		747,597
Windmill Funding Corp.
2.80%, 05/04/05		288,804		288,759

				55,530,285

FLOATING RATE NOTES² – 5.79%
Allstate Life Global Funding II
2.91%, 03/08/06³		429,935		429,947
American Express Centurion Bank
2.98% - 3.04%, 10/26/05 - 01/24/06		3,271,243		3,271,696
Bank of Nova Scotia
2.80% - 2.94%, 09/26/05 - 01/03/06		607,517		607,398
Beta Finance Inc.
2.81% - 3.16%, 05/04/05 - 04/25/06³		3,589,021		3,589,186
BMW US Capital LLC
2.92%, 04/18/06³		934,641		934,641
Canadian Imperial Bank of Commerce
2.86% - 3.00%, 09/13/05 - 12/14/05		3,177,779		3,177,321


SCHEDULES OF INVESTMENTS		77

Schedule of Investments (Continued)

iSHARES^® COHEN & STEERS REALTY MAJORS INDEX FUND

April 30, 2005


*Security*	*Principal*		*Value*
CC USA Inc.
2.81% - 3.12%, 05/04/05 - 03/23/06³	$	2,430,066	$	2,429,974
Commodore CDO Ltd.
3.08%, 12/12/05		233,660		233,660
Den Danske Bank NY
2.85% - 2.96%, 08/12/05 - 10/17/05		2,803,923		2,803,628
DEPFA Bank PLC
2.99%, 03/15/06		934,641		934,641
Dorada Finance Inc.
3.00% - 3.12%, 07/29/05 - 03/27/06³		2,028,171		2,028,267
Fairway Finance LLC
2.94%, 06/20/05		467,320		467,314
Fifth Third Bancorp
2.98%, 02/23/06³		1,869,282		1,869,282
Five Finance Inc.
3.01%, 02/27/06³		467,320		467,371
General Electric Capital Corp.
3.01%, 05/09/06		420,588		421,098
General Electric Commercial Equipment Financing LLC
2.95%, 11/20/05		268,889		268,889
Greenwich Capital Holdings Inc.
2.83%, 09/02/05		607,517		607,517
Hartford Life Global Funding Trust
2.94%, 04/15/06		934,641		934,641
HBOS Treasury Services PLC
2.87% - 3.08%, 01/10/06 - 04/24/06		2,803,923		2,803,923
K2 USA LLC
2.87% - 3.11%, 06/10/05 - 02/15/06³		4,205,884		4,205,961
Leafs LLC
2.99%, 01/20/06 - 02/21/06³		981,373		981,373
Links Finance LLC
2.92% - 3.15%, 11/16/05 - 02/06/06³		1,962,746		1,963,489
Lothian Mortgages PLC
3.01%, 01/24/06³		1,401,961		1,401,961
Marshall & Ilsley Corp.
3.09%, 02/20/06		934,641		935,541
MetLife Global Funding I
2.86%, 05/05/06³		1,401,961		1,401,961
National City Bank (Ohio)
2.84% - 2.95%, 06/10/05 - 08/09/05		2,336,602		2,336,503
Nationwide Building Society
2.89% - 3.12%, 01/13/06 - 04/28/06³		3,458,172		3,458,775
Norddeutsche Landesbank
3.11%, 07/27/05		934,641		934,563
Northern Rock PLC
2.88% - 2.99%, 10/25/05 - 02/03/06³		2,803,923		2,803,923
Permanent Financing PLC
2.87% - 2.89%, 06/10/05 - 03/10/06		3,317,975		3,317,975
Royal Bank of Scotland
2.79% - 2.91%, 06/20/05 - 04/05/06		1,268,775		1,268,379
Sedna Finance Inc.
2.92%, 01/10/06 - 01/17/06³		514,053		513,955
Sigma Finance Inc.
2.82% - 3.16%, 08/17/05 - 01/09/06³		4,766,669		4,766,811
Societe Generale
2.99%, 03/30/06		794,445		794,201
SunTrust Bank
3.17%, 04/28/06		1,401,961		1,401,961
Tango Finance Corp.
2.74% - 2.99%, 05/17/05 - 09/15/05³		2,532,877		2,532,805
Wachovia Asset Securitization Inc.
3.00% - 3.01%, 05/25/05		2,545,898		2,545,898
Wells Fargo & Co.
2.92%, 05/15/06³		467,320		467,379
WhistleJacket Capital LLC
2.86% - 2.97%, 06/15/05 - 01/17/06³		3,271,243		3,271,034


78		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® COHEN & STEERS REALTY MAJORS INDEX FUND

April 30, 2005


*Security*	Shares or Principal		*Value*
White Pine Finance LLC
2.80% - 3.09%, 05/20/05 - 01/13/06³	$	4,009,610	$	4,009,343
Windmill Funding Corp.
2.78%, 05/03/05		654,249		654,198
Winston Funding Ltd.
3.22%, 07/23/05³		667,334		667,334
World Savings Bank
2.86%, 09/09/05		327,124		327,113

				75,242,830

MONEY MARKET FUNDS – 0.34%
Barclays Global Investors Funds Government Money Market Fund, Institutional Shares^2,4		3,738,564		3,738,564
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares⁴		194,603		194,603
BlackRock Temp Cash Money Market Fund²		135,390		135,390
Short-Term Investment Co. - Prime Money Market Portfolio, Institutional Shares²		378,678		378,678

				4,447,235

REPURCHASE AGREEMENTS² – 3.29%
Bank of America N.A. Repurchase Agreement, dated 4/29/05, due 5/2/05, with a maturity value of $23,371,808 and an effective yield of 2.97%.⁵	$	23,366,025		23,366,025
Goldman Sachs & Co. Repurchase Agreements, dated 4/29/05, due 5/2/05, with a total maturity value of $11,364,959 and effective yields of 2.96% - 3.00%.⁵		11,362,150		11,362,150
Merrill Lynch Government Securities Inc. Repurchase Agreements, dated 4/29/05, due 5/2/05, with a total maturity value of $7,935,637 and effective yields of 2.96% - 3.00%.⁵		7,933,671		7,933,671

				42,661,846

*Security*	*Principal*		*Value*
TIME DEPOSITS² – 2.15%
American Express Centurion Bank
3.00%, 05/25/05	$	2,336,602	$	2,336,602
Banco Bilbao Vizcaya Argentaria SA
3.03% - 3.18%, 06/27/05 - 09/14/05		1,355,229		1,355,229
BNP Paribas (New York)
2.78% - 3.03%, 07/11/05 - 08/23/05		1,308,497		1,308,497
Credit Suisse First Boston
2.75% - 2.81%, 05/03/05		1,215,033		1,215,033
Dexia Credit Local SA
2.81% - 3.01%, 05/04/05 - 06/21/05		1,822,550		1,822,554
First Tennessee Bank
3.00% - 3.04%, 06/14/05 - 06/27/05		1,635,622		1,635,622
HBOS Treasury Services PLC
3.39%, 12/14/05		560,785		560,785
Natexis Banques
2.98%, 08/18/05		934,641		934,641
Norddeutsche Landesbank
2.11%, 06/07/05		934,641		934,623
Societe Generale
2.81%, 05/03/05		654,249		654,249
SunTrust Bank
2.68%, 05/03/05		934,641		934,638
Svenska Handelsbanken AB
3.00%, 06/20/05		467,320		467,320
Toronto-Dominion Bank
1.77% - 3.18%, 05/10/05 - 11/09/05		2,850,655		2,850,590
UBS AG
2.67% - 3.40%, 11/09/05 - 12/15/05		747,713		747,705
Washington Mutual Bank
2.81% - 3.15%, 05/02/05 - 07/28/05		6,028,434		6,028,433
Wells Fargo Bank N.A.
3.04%, 06/29/05		2,803,923		2,803,923


SCHEDULES OF INVESTMENTS		79

Schedule of Investments (Continued)

iSHARES^® COHEN & STEERS REALTY MAJORS INDEX FUND

April 30, 2005


*Security*	*Principal*		*Value*
World Savings Bank
2.75%, 05/03/05	$	1,308,497	$	1,308,497

				27,898,941

U.S. GOVERNMENT AGENCY NOTES² – 0.14%
Federal Home Loan Mortgage Corp.
2.06%, 05/31/05		465,947		465,173
Federal National Mortgage Association
2.33%, 07/22/05		1,401,961		1,394,627

				1,859,800

TOTAL SHORT-TERM INVESTMENTS (Cost: $207,640,937)				207,640,937

TOTAL INVESTMENTS IN SECURITIES – 115.36% (Cost: $1,352,215,308)				1,497,508,906
Other Assets, Less Liabilities – (15.36%)				(199,428,667	)

NET ASSETS – 100.00%			$	1,298,080,239

¹	All or a portion of this security represents a security on loan. See Note 5.

²	All or a portion of this security (these securities) represent(s) an investment of securities lending collateral. See Note 5.

³	All or a portion of this security is 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.

⁴	The Fund’s investment adviser is an affiliate of the issuer. See Note 2.

⁵	Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 3.12% to 7.13% and maturity dates ranging from 5/25/05 to 8/1/42.

See notes to financial statements.


80		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities

iSHARES^® TRUST

April 30, 2005


	*iShares Dow Jones U.S.*
	Basic Materials Sector Index Fund			Consumer Goods Sector Index Fund			Consumer Services Sector Index Fund			Financial Sector Index Fund			Industrial Sector Index Fund
ASSETS
Investments, at cost:
Unaffiliated issuers	$	452,883,256		$	452,460,131		$	301,693,881		$	311,690,712		$	247,741,829

Affiliated issuers^a	$	1,237,610		$	738,364		$	798,312		$	667,469		$	369,627

Investments in securities, at value (including securities on loan^b) (Note 1):
Unaffiliated issuers	$	445,848,936		$	449,673,912		$	271,637,863		$	322,685,695		$	253,743,797
Affiliated issuers^a		1,237,610			738,364			798,312			667,469			369,627
Receivables:
Dividends and interest		224,566			585,604			43,420			717,277			125,696
Capital shares sold		—			35,086			—			—			—

Total Assets		447,311,112			451,032,966			272,479,595			324,070,441			254,239,120

LIABILITIES
Payables:
Investment securities purchased		441,619			—			298,988			240,754			—
Collateral for securities on loan (Note 5)		33,795,745			29,732,807			20,840,567			23,776,992			17,282,607
Investment advisory fees (Note 2)		219,478			196,110			128,157			146,086			118,380

Total Liabilities		34,456,842			29,928,917			21,267,712			24,163,832			17,400,987

NET ASSETS	$	412,854,270		$	421,104,049		$	251,211,883		$	299,906,609		$	236,838,133

Net assets consist of:
Paid-in capital	$	421,618,967		$	431,507,948		$	286,226,011		$	291,616,296		$	240,940,071
Undistributed net investment income		429,693			351,487			—			912,636			3,482
Accumulated net realized loss		(2,160,070	)		(7,969,167	)		(4,958,110	)		(3,617,306	)		(10,107,388	)
Net unrealized appreciation (depreciation)		(7,034,320	)		(2,786,219	)		(30,056,018	)		10,994,983			6,001,968

NET ASSETS	$	412,854,270		$	421,104,049		$	251,211,883		$	299,906,609		$	236,838,133

Shares outstanding		8,750,000			8,200,000			4,500,000			3,300,000			4,450,000

Net asset value per share	$	47.18		$	51.35		$	55.82		$	90.88		$	53.22

^a	The Funds’ investment adviser is an affiliate of the issuers. See Note 2.

^b	Securities on loan with market values of $32,684,878, $28,837,770, $20,155,906, $23,119,696 and $16,814,094, respectively. See Note 5.

See notes to financial statements.


FINANCIAL STATEMENTS		81

Statements of Assets and Liabilities (Continued)

iSHARES^® TRUST

April 30, 2005


	*iShares Dow Jones U.S.*						*iShares KLD*			*iShares* *Cohen & Steers*
	Financial Services Index Fund			Real Estate Index Fund			Select Social Index Fund			Realty Majors Index Fund
ASSETS
Investments, at cost:
Unaffiliated issuers	$	147,601,529		$	908,749,203		$	42,252,938		$	1,348,282,141

Affiliated issuers^a	$	324,567		$	4,070,431		$	15,414		$	3,933,167

Investments in securities, at value (including securities on loan^b) (Note 1):
Unaffiliated issuers	$	151,678,059		$	886,996,458		$	41,629,970		$	1,493,575,739
Affiliated issuers^a		324,567			4,070,431			15,414			3,933,167
Receivables:
Dividends and interest		442,253			964,993			40,635			507,078
Capital shares sold		—			59,017			—			17,829,472

Total Assets		152,444,879			892,090,899			41,686,019			1,515,845,456

LIABILITIES
Payables:
Investment securities purchased		172,761			—			—			9,975,107
Collateral for securities on loan (Note 5)		10,558,240			154,431,598			412			207,446,334
Capital shares redeemed		—			477,857			—			—
Investment advisory fees (Note 2)		69,131			398,055			16,838			343,776

Total Liabilities		10,800,132			155,307,510			17,250			217,765,217

NET ASSETS	$	141,644,747		$	736,783,389		$	41,668,769		$	1,298,080,239

Net assets consist of:
Paid-in capital	$	139,624,910		$	760,509,284		$	42,371,329		$	1,160,625,256
Undistributed net investment income		478,440			770,250			32,043			2,402,646
Accumulated net realized loss		(2,535,133	)		(2,743,400	)		(111,635	)		(10,241,261	)
Net unrealized appreciation (depreciation)		4,076,530			(21,752,745	)		(622,968	)		145,293,598

NET ASSETS	$	141,644,747		$	736,783,389		$	41,668,769		$	1,298,080,239

Shares outstanding		1,350,000			6,200,000			850,000			9,750,000

Net asset value per share	$	104.92		$	118.84		$	49.02		$	133.14

^a	The Funds’ investment adviser is an affiliate of the issuers. See Note 2.

^b	Securities on loan with market values of $10,254,152, $150,178,759, $369 and $202,158,396, respectively. See Note 5.

See notes to financial statements.


82		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations

iSHARES^® TRUST

Year Ended April 30, 2005


	*iShares Dow Jones U.S.*
	Basic Materials Sector Index Fund			Consumer Goods Sector Index Fund			Consumer Services Sector Index Fund			Financial Sector Index Fund			Industrial Sector Index Fund
NET INVESTMENT INCOME
Dividends^a	$	7,638,957		$	7,452,174		$	1,694,126		$	7,700,954		$	3,489,614
Interest		—			—			—			—			140
Interest from affiliated issuers^b		4,563			4,439			2,571			4,274			2,603
Securities lending income^c		27,235			39,177			29,929			27,347			16,496

Total investment income		7,670,755			7,495,790			1,726,626			7,732,575			3,508,853

EXPENSES (Note 2)
Investment advisory fees		2,162,553			2,101,520			1,223,613			1,636,988			1,344,384

Total expenses		2,162,553			2,101,520			1,223,613			1,636,988			1,344,384

Net investment income		5,508,202			5,394,270			503,013			6,095,587			2,164,469

NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments		(1,348,427	)		(6,307,428	)		(4,787,044	)		(94,376	)		(1,522,486	)
In-kind redemptions		35,302,892			21,513,407			28,873,907			19,377,115			10,175,811

Net realized gain		33,954,465			15,205,979			24,086,863			19,282,739			8,653,325

Net change in unrealized appreciation (depreciation)		(9,314,312	)		(24,167,411	)		(26,690,705	)		(11,947,039	)		9,839,568

Net realized and unrealized gain (loss)		24,640,153			(8,961,432	)		(2,603,842	)		7,335,700			18,492,893

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	30,148,355		$	(3,567,162	)	$	(2,100,829	)	$	13,431,287		$	20,657,362

^a	Net of foreign withholding tax of $—, $—, $—, $2,314 and $—, respectively.

^b	The Funds’ investment adviser is an affiliate of the issuers. See Note 2.

^c	Includes income earned from issuers of which the Funds’ investment adviser is an affiliate. See Note 2.

See notes to financial statements.


FINANCIAL STATEMENTS		83

Statements of Operations (Continued)

iSHARES^® TRUST

Year Ended April 30, 2005


	*iShares Dow Jones U.S.*						*iShares KLD*			*iShares* *Cohen & Steers*
	Financial Services Index Fund			Real Estate Index Fund			Select Social Index Fund^a			Realty Majors Index Fund
NET INVESTMENT INCOME
Dividends^b	$	3,445,456		$	46,786,525		$	115,444		$	56,324,707
Interest from affiliated issuers^c		1,826			17,549			139			36,135
Securities lending income^d		7,299			441,938			20			98,940

Total investment income		3,454,581			47,246,012			115,603			56,459,782

EXPENSES (Note 2)
Investment advisory fees		741,206			4,764,324			34,773			3,715,531

Total expenses		741,206			4,764,324			34,773			3,715,531

Net investment income		2,713,375			42,481,688			80,830			52,744,251

NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments		(118,785	)		(16,010,910	)		(111,645	)		(23,087,827	)
In-kind redemptions		4,269,897			143,333,876			95,982			145,549,867

Net realized gain (loss)		4,151,112			127,322,966			(15,663	)		122,462,040

Net change in unrealized appreciation (depreciation)		(398,240	)		17,799,022			(622,968	)		134,162,314

Net realized and unrealized gain (loss)		3,752,872			145,121,988			(638,631	)		256,624,354

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	6,466,247		$	187,603,676		$	(557,801	)	$	309,368,605

^a	For the period from January 24, 2005 (commencement of operations) to April 30, 2005.

^b	Net of foreign withholding tax of $1,514, $–, $16 and $–, respectively.

^c	The Funds’ investment adviser is an affiliate of the issuers. See Note 2.

^d	Includes income earned from issuers of which the Funds’ investment adviser is an affiliate. See Note 2.

See notes to financial statements.


84		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets

iSHARES^® TRUST


	*iShares Dow Jones U.S.* *Basic Materials Sector* *Index Fund*						*iShares Dow Jones U.S.* *Consumer Goods Sector* *Index Fund*						*iShares Dow Jones U.S.* *Consumer Services Sector* *Index Fund*
	For the year ended April 30, 2005			For the year ended April 30, 2004			For the year ended April 30, 2005			For the year ended April 30, 2004			For the year ended April 30, 2005			For the year ended April 30, 2004
INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	5,508,202		$	4,057,186		$	5,394,270		$	2,258,812		$	503,013		$	296,106
Net realized gain (loss)		33,954,465			18,339,983			15,205,979			(112,901	)		24,086,863			699,258
Net change in unrealized appreciation (depreciation)		(9,314,312	)		12,741,111			(24,167,411	)		38,413,496			(26,690,705	)		27,215,745

Net increase (decrease) in net assets resulting from operations		30,148,355			35,138,280			(3,567,162	)		40,559,407			(2,100,829	)		28,211,109

DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(5,489,061	)		(3,869,236	)		(5,260,253	)		(2,371,901	)		(502,432	)		(296,106	)
Return of capital		—			—			—			—			(49,826	)		(8,787	)

Total distributions to shareholders		(5,489,061	)		(3,869,236	)		(5,260,253	)		(2,371,901	)		(552,258	)		(304,893	)

CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		275,800,923			275,384,412			195,746,764			170,050,256			256,671,730			132,602,989
Cost of shares redeemed		(204,444,705	)		(89,594,002	)		(55,384,758	)		(6,586,545	)		(222,193,546	)		(70,898,261	)

Net increase in net assets from capital share transactions		71,356,218			185,790,410			140,362,006			163,463,711			34,478,184			61,704,728

INCREASE IN NET ASSETS		96,015,512			217,059,454			131,534,591			201,651,217			31,825,097			89,610,944

NET ASSETS:
Beginning of year		316,838,758			99,779,304			289,569,458			87,918,241			219,386,786			129,775,842

End of year	$	412,854,270		$	316,838,758		$	421,104,049		$	289,569,458		$	251,211,883		$	219,386,786

Undistributed net investment income included in net assets at end of year	$	429,693		$	410,552		$	351,487		$	230,289		$	—		$	—

SHARES ISSUED AND REDEEMED:
Shares sold		5,700,000			6,650,000			3,750,000			3,500,000			4,400,000			2,500,000
Shares redeemed		(4,450,000	)		(2,050,000	)		(1,100,000	)		(150,000	)		(3,850,000	)		(1,400,000	)

Net increase in shares outstanding		1,250,000			4,600,000			2,650,000			3,350,000			550,000			1,100,000

See notes to financial statements.


FINANCIAL STATEMENTS		85

Statements of Changes in Net Assets (Continued)

iSHARES^® TRUST


	*iShares Dow Jones U.S.* *Financial Sector* *Index Fund*						*iShares Dow Jones U.S.* *Industrial Sector* *Index Fund*						*iShares Dow Jones U.S.* *Financial Services* *Index Fund*
	For the year ended April 30, 2005			For the year ended April 30, 2004			For the year ended April 30, 2005			For the year ended April 30, 2004			For the year ended April 30, 2005			For the year ended April 30, 2004
INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	6,095,587		$	4,332,816		$	2,164,469		$	1,277,272		$	2,713,375		$	2,175,468
Net realized gain (loss)		19,282,739			(148,655	)		8,653,325			10,965,150			4,151,112			10,113,638
Net change in unrealized appreciation (depreciation)		(11,947,039	)		32,124,797			9,839,568			15,562,180			(398,240	)		5,539,065

Net increase in net assets resulting from operations		13,431,287			36,308,958			20,657,362			27,804,602			6,466,247			17,828,171

DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(5,424,584	)		(3,894,471	)		(2,160,204	)		(1,283,480	)		(2,559,210	)		(2,073,172	)
Return of capital		—			—			—			(11,324	)		—			—

Total distributions to shareholders		(5,424,584	)		(3,894,471	)		(2,160,204	)		(1,294,804	)		(2,559,210	)		(2,073,172	)

CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		103,238,620			81,532,850			98,118,818			111,708,255			43,577,016			45,865,363
Cost of shares redeemed		(69,419,431	)		(4,069,289	)		(37,162,015	)		(61,884,407	)		(16,510,174	)		(67,906,919	)

Net increase (decrease) in net assets from capital share transactions		33,819,189			77,463,561			60,956,803			49,823,848			27,066,842			(22,041,556	)

INCREASE (DECREASE) IN NET ASSETS		41,825,892			109,878,048			79,453,961			76,333,646			30,973,879			(6,286,557	)

NET ASSETS:
Beginning of year		258,080,717			148,202,669			157,384,172			81,050,526			110,670,868			116,957,425

End of year	$	299,906,609		$	258,080,717		$	236,838,133		$	157,384,172		$	141,644,747		$	110,670,868

Undistributed net investment income included in net assets at end of year	$	912,636		$	597,453		$	3,482			—		$	478,440		$	324,275

SHARES ISSUED AND REDEEMED:
Shares sold		1,100,000			950,000			1,900,000			2,450,000			400,000			450,000
Shares redeemed		(750,000	)		(50,000	)		(700,000	)		(1,300,000	)		(150,000	)		(750,000	)

Net increase (decrease) in shares outstanding		350,000			900,000			1,200,000			1,150,000			250,000			(300,000	)

See notes to financial statements.


86		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^® TRUST


	*iShares Dow Jones U.S.* *Real Estate* *Index Fund*						*iShares KLD* *Select Social* *Index Fund*			*iShares Cohen & Steers* *Realty Majors* *Index Fund*
	For the year ended April 30, 2005			For the year ended April 30, 2004			For the period January 24, 2005^a to April 30, 2005			For the year ended April 30, 2005			For the year ended April 30, 2004
INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	42,481,688		$	19,345,350		$	80,830		$	52,744,251		$	28,273,224
Net realized gain (loss)		127,322,966			54,520,373			(15,663	)		122,462,040			25,127,626
Net change in unrealized appreciation (depreciation)		17,799,022			(35,483,332	)		(622,968	)		134,162,314			14,250,762

Net increase (decrease) in net assets resulting from operations		187,603,676			38,382,391			(557,801	)		309,368,605			67,651,612

Undistributed net investment income included in the price of capital shares issued or redeemed		2,961,500			2,549,000			—			1,896,000			4,088,000

DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(29,207,583	)		(13,871,295	)		(48,787	)		(36,087,408	)		(20,735,219	)
Return of capital		(12,976,261	)		(6,619,829	)		—			(15,124,608	)		(8,685,946	)

Total distributions to shareholders		(42,183,844	)		(20,491,124	)		(48,787	)		(51,212,016	)		(29,421,165	)

CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		4,511,485,079			697,487,703			44,782,472			855,953,443			537,632,626
Cost of shares redeemed		(4,342,172,184	)		(494,041,553	)		(2,507,115	)		(542,372,029	)		(123,236,692	)

Net increase in net assets from capital share transactions		169,312,895			203,446,150			42,275,357			313,581,414			414,395,934

INCREASE IN NET ASSETS		317,694,227			223,886,417			41,668,769			573,634,003			456,714,381

NET ASSETS:
Beginning of period		419,089,162			195,202,745			—			724,446,236			267,731,855

End of period	$	736,783,389		$	419,089,162		$	41,668,769		$	1,298,080,239		$	724,446,236

Undistributed net investment income included in net assets at end of period	$	770,250		$	290,001		$	32,043		$	2,402,646		$	1,629,733

SHARES ISSUED AND REDEEMED:
Shares sold		40,500,000			7,150,000			900,000			6,950,000			5,250,000
Shares redeemed		(38,800,000	)		(5,100,000	)		(50,000	)		(4,400,000	)		(1,200,000	)

Net increase in shares outstanding		1,700,000			2,050,000			850,000			2,550,000			4,050,000

^a	Commencement of operations.

See notes to financial statements.


FINANCIAL STATEMENTS		87

Financial Highlights

iSHARES^® TRUST

(For a share outstanding throughout each period)


	*iShares Dow Jones U.S. Basic Materials Sector Index Fund*
	Year ended Apr. 30, 2005			Year ended Apr. 30, 2004			Year ended Apr. 30, 2003			Year ended Apr. 30, 2002			Period from Jun. 12, 2000^a to Apr. 30, 2001
Net asset value, beginning of period	$	42.25		$	34.41		$	39.99		$	39.24		$	36.04

Income from investment operations:
Net investment income		0.72			0.66			0.70			0.55			0.55
Net realized and unrealized gain (loss)		4.94			7.86			(5.62	)		0.73			3.25

Total from investment operations		5.66			8.52			(4.92	)		1.28			3.80

Less distributions from:
Net investment income		(0.73	)		(0.68	)		(0.66	)		(0.53	)		(0.53	)
Net realized gain		—			—			—			—			(0.07	)

Total distributions		(0.73	)		(0.68	)		(0.66	)		(0.53	)		(0.60	)

Net asset value, end of period	$	47.18		$	42.25		$	34.41		$	39.99		$	39.24

Total return		13.41	%		24.85	%		(12.30	)%		3.38	%		10.80	%^b

Ratios/Supplemental data:
Net assets, end of period (000s)	$	412,854		$	316,839		$	99,779		$	57,989		$	9,811
Ratio of expenses to average net assets^c		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%
Ratio of net investment income to average net assets^c		1.53	%		1.70	%		2.10	%		1.42	%		1.77	%
Portfolio turnover rate^d		6	%		7	%		6	%		9	%		16	%

^a	Commencement of operations.

^b	Not annualized.

^c	Annualized for periods of less than one year.

^d	Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.


88		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)


	*iShares Dow Jones U.S. Consumer Goods Sector Index Fund*
	Year ended Apr. 30, 2005			Year ended Apr. 30, 2004			Year ended Apr. 30, 2003			Year ended Apr. 30, 2002			Period from Jun. 12, 2000^a to Apr. 30, 2001
Net asset value, beginning of period	$	52.17		$	39.96		$	47.91		$	40.55		$	40.83

Income from investment operations:
Net investment income		0.76			0.65			0.69			0.49			0.42
Net realized and unrealized gain (loss)		(0.82	)		12.32			(8.04	)		7.41			(0.39	)

Total from investment operations		(0.06	)		12.97			(7.35	)		7.90			0.03

Less distributions from:
Net investment income		(0.76	)		(0.76	)		(0.60	)		(0.54	)		(0.31	)

Total distributions		(0.76	)		(0.76	)		(0.60	)		(0.54	)		(0.31	)

Net asset value, end of period	$	51.35		$	52.17		$	39.96		$	47.91		$	40.55

Total return		(0.09	)%		32.73	%		(15.40	)%		19.65	%		0.06	%^b

Ratios/Supplemental data:
Net assets, end of period (000s)	$	421,104		$	289,569		$	87,918		$	114,974		$	14,192
Ratio of expenses to average net assets^c		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%
Ratio of net investment income to average net assets^c		1.54	%		1.53	%		1.57	%		1.46	%		1.21	%
Portfolio turnover rate^d		9	%		5	%		28	%		8	%		38	%

^a	Commencement of operations.

^b	Not annualized.

^c	Annualized for periods of less than one year.

^d	Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.


FINANCIAL STATEMENTS		89

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)


	*iShares Dow Jones U.S. Consumer Services Sector Index Fund*
	Year ended Apr. 30, 2005			Year ended Apr. 30, 2004			Year ended Apr. 30, 2003			Year ended Apr. 30, 2002			Period from Jun. 12, 2000^a to Apr. 30, 2001
Net asset value, beginning of period	$	55.54		$	45.54		$	55.05		$	59.88		$	59.63

Income from investment operations:
Net investment income		0.15			0.10			0.05			0.02			0.09
Net realized and unrealized gain (loss)		0.29			10.00			(9.50	)		(4.80	)		0.45

Total from investment operations		0.44			10.10			(9.45	)		(4.78	)		0.54

Less distributions from:
Net investment income		(0.15	)		(0.10	)		(0.05	)		—			(0.10	)
Net realized gain		—			—			—			—			(0.19	)
Return of capital		(0.01	)		(0.00	)^e		(0.01	)		(0.05	)		—

Total distributions		(0.16	)		(0.10	)		(0.06	)		(0.05	)		(0.29	)

Net asset value, end of period	$	55.82		$	55.54		$	45.54		$	55.05		$	59.88

Total return		0.79	%		22.21	%		(17.17	)%		(7.98	)%		0.98	%^b

Ratios/Supplemental data:
Net assets, end of period (000s)	$	251,212		$	219,387		$	129,776		$	129,362		$	29,940
Ratio of expenses to average net assets^c		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%
Ratio of net investment income (loss) to average net assets^c		0.25	%		0.19	%		0.11	%		(0.05	)%		0.16	%
Portfolio turnover rate^d		13	%		6	%		10	%		4	%		25	%

^a	Commencement of operations.

^b	Not annualized.

^c	Annualized for periods of less than one year.

^d	Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

^e	Rounds to less than $0.01.

See notes to financial statements.


90		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)


	*iShares Dow Jones U.S. Financial Sector Index Fund*
	Year ended Apr. 30, 2005			Year ended Apr. 30, 2004			Year ended Apr. 30, 2003			Year ended Apr. 30, 2002			Period from May 22, 2000^a to Apr. 30, 2001
Net asset value, beginning of period	$	87.48		$	72.29		$	81.20		$	81.78		$	71.80

Income from investment operations:
Net investment income		1.95			1.65			1.31			1.11			1.77
Net realized and unrealized gain (loss)		3.22			15.09			(8.94	)		(0.61	)		10.17

Total from investment operations		5.17			16.74			(7.63	)		0.50			11.94

Less distributions from:
Net investment income		(1.77	)		(1.55	)		(1.28	)		(1.08	)		(1.57	)
Net realized gain		—			—			—			—			(0.39	)

Total distributions		(1.77	)		(1.55	)		(1.28	)		(1.08	)		(1.96	)

Net asset value, end of period	$	90.88		$	87.48		$	72.29		$	81.20		$	81.78

Total return		5.89	%		23.29	%		(9.33	)%		0.66	%		16.69	%^b

Ratios/Supplemental data:
Net assets, end of period (000s)	$	299,907		$	258,081		$	148,203		$	121,796		$	57,249
Ratio of expenses to average net assets^c		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%
Ratio of net investment income to average net assets^c		2.23	%		2.08	%		1.94	%		1.49	%		1.46	%
Portfolio turnover rate^d		7	%		7	%		28	%		4	%		11	%

^a	Commencement of operations.

^b	Not annualized.

^c	Annualized for periods of less than one year.

^d	Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.


FINANCIAL HIGHLIGHTS		91

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)


	*iShares Dow Jones U.S. Industrial Sector Index Fund*
	Year ended Apr. 30, 2005			Year ended Apr. 30, 2004			Year ended Apr. 30, 2003			Year ended Apr. 30, 2002			Period from Jun. 12, 2000^a to Apr. 30, 2001
Net asset value, beginning of period	$	48.43		$	38.60		$	45.75		$	53.99		$	58.11

Income from investment operations:
Net investment income		0.49			0.39			0.38			0.29			0.22
Net realized and unrealized gain (loss)		4.79			9.84			(7.15	)		(8.23	)		(3.98	)

Total from investment operations		5.28			10.23			(6.77	)		(7.94	)		(3.76	)

Less distributions from:
Net investment income		(0.49	)		(0.40	)		(0.38	)		(0.30	)		(0.23	)
Net realized gain		—			—			—			—			(0.13	)
Return of capital		—			(0.00	)^e		—			—			—

Total distributions		(0.49	)		(0.40	)		(0.38	)		(0.30	)		(0.36	)

Net asset value, end of period	$	53.22		$	48.43		$	38.60		$	45.75		$	53.99

Total return		10.90	%		26.56	%		(14.75	)%		(14.72	)%		(6.46	)%^b

Ratios/Supplemental data:
Net assets, end of period (000s)	$	236,838		$	157,384		$	81,051		$	84,634		$	45,891
Ratio of expenses to average net assets^c		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%
Ratio of net investment income to average net assets^c		0.97	%		0.94	%		1.03	%		0.56	%		0.44	%
Portfolio turnover rate^d		5	%		3	%		12	%		27	%		23	%

^a	Commencement of operations.

^b	Not annualized.

^c	Annualized for periods of less than one year.

^d	Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

^e	Rounds to less than $0.01.

See notes to financial statements.


92		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)


	*iShares Dow Jones U.S. Financial Services Index Fund*
	Year ended Apr. 30, 2005			Year ended Apr. 30, 2004			Year ended Apr. 30, 2003			Year ended Apr. 30, 2002			Period from Jun. 12, 2000^a to Apr. 30, 2001
Net asset value, beginning of period	$	100.61		$	83.54		$	92.45		$	93.67		$	85.58

Income from investment operations:
Net investment income		2.22			2.12			1.41			1.22			1.29
Net realized and unrealized gain (loss)		4.25			16.93			(8.90	)		(1.26	)		8.10

Total from investment operations		6.47			19.05			(7.49	)		(0.04	)		9.39

Less distributions from:
Net investment income		(2.16	)		(1.98	)		(1.42	)		(1.18	)		(1.17	)
Net realized gain		—			—			—			—			(0.13	)

Total distributions		(2.16	)		(1.98	)		(1.42	)		(1.18	)		(1.30	)

Net asset value, end of period	$	104.92		$	100.61		$	83.54		$	92.45		$	93.67

Total return		6.44	%		22.91	%		(8.02	)%		0.00	%^e		11.03	%^b

Ratios/Supplemental data:
Net assets, end of period (000s)	$	141,645		$	110,671		$	116,957		$	60,092		$	37,467
Ratio of expenses to average net assets^c		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%
Ratio of net investment income to average net assets^c		2.20	%		2.08	%		1.90	%		1.46	%		1.33	%
Portfolio turnover rate^d		7	%		7	%		41	%		3	%		5	%

^a	Commencement of operations.

^b	Not annualized.

^c	Annualized for periods of less than one year.

^d	Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

^e	Rounds to less than 0.01%.

See notes to financial statements.


FINANCIAL HIGHLIGHTS		93

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)


	*iShares Dow Jones U.S. Real Estate Index Fund*
	Year ended Apr. 30, 2005			Year ended Apr. 30, 2004			Year ended Apr. 30, 2003			Year ended Apr. 30, 2002			Period from Jun. 12, 2000^a to Apr. 30, 2001
Net asset value, beginning of period	$	93.13		$	79.67		$	85.52		$	77.21		$	68.97

Income from investment operations:
Net investment income		5.14			4.98			5.04			4.56			3.51
Net realized and unrealized gain (loss)		25.68			13.84			(6.01	)		8.71			7.51

Total from investment operations		30.82			18.82			(0.97	)		13.27			11.02

Less distributions from:
Net investment income		(3.54	)		(3.63	)		(3.98	)		(4.54	)		(2.64	)
Net realized gain		—			—			—			—			(0.14	)
Return of capital		(1.57	)		(1.73	)		(0.90	)		(0.42	)		—

Total distributions		(5.11	)		(5.36	)		(4.88	)		(4.96	)		(2.78	)

Net asset value, end of period	$	118.84		$	93.13		$	79.67		$	85.52		$	77.21

Total return		33.62	%		23.66	%		(0.98	)%		17.83	%		16.32	%^b

Ratios/Supplemental data:
Net assets, end of period (000s)	$	736,783		$	419,089		$	195,203		$	106,905		$	54,049
Ratio of expenses to average net assets^c		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%
Ratio of net investment income to average net assets^c		5.35	%		5.58	%		6.40	%		5.97	%		6.37	%
Portfolio turnover rate^d		16	%		20	%		21	%		10	%		30	%

^a	Commencement of operations.

^b	Not annualized.

^c	Annualized for periods of less than one year.

^d	Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.


94		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout the period)


	iShares KLD Select Social Index Fund
	Period from Jan. 24, 2005^a to Apr. 30, 2005
Net asset value, beginning of period	$	49.69

Income from investment operations:
Net investment income		0.18
Net realized and unrealized loss		(0.71	)

Total from investment operations		(0.53	)

Less distributions from:
Net investment income		(0.14	)

Total distributions		(0.14	)

Net asset value, end of period	$	49.02

Total return		(1.07	)%^b

Ratios/Supplemental data:
Net assets, end of period (000s)	$	41,669
Ratio of expenses to average net assets^c		0.50	%
Ratio of net investment income to average net assets^c		1.16	%
Portfolio turnover rate^d		3	%

^a	Commencement of operations.

^b	Not annualized.

^c	Annualized for periods of less than one year.

^d	Portfolio turnover rate excludes portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.


FINANCIAL HIGHLIGHTS		95

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)


	*iShares Cohen & Steers Realty Majors Index Fund*
	Year ended Apr. 30, 2005			Year ended Apr. 30, 2004			Year ended Apr. 30, 2003			Year ended Apr. 30, 2002			Period from Jan. 29, 2001^a to Apr. 30, 2001
Net asset value, beginning of period	$	100.62		$	84.99		$	89.68		$	80.09		$	79.86

Income from investment operations:
Net investment income		5.81			5.26			4.59			4.79			1.11
Net realized and unrealized gain (loss)		32.42			15.87			(4.32	)		9.98			(0.39	)

Total from investment operations		38.23			21.13			0.27			14.77			0.72

Less distributions from:
Net investment income		(4.02	)		(3.88	)		(3.76	)		(4.77	)		(0.49	)
Return of capital		(1.69	)		(1.62	)		(1.20	)		(0.41	)		—

Total distributions		(5.71	)		(5.50	)		(4.96	)		(5.18	)		(0.49	)

Net asset value, end of period	$	133.14		$	100.62		$	84.99		$	89.68		$	80.09

Total return		38.61	%		24.97	%		0.46	%		19.05	%		0.91	%^b

Ratios/Supplemental data:
Net assets, end of period (000s)	$	1,298,080		$	724,446		$	267,732		$	89,684		$	40,047
Ratio of expenses to average net assets^c		0.35	%		0.35	%		0.35	%^e		0.35	%		0.35	%
Ratio of net investment income to average net assets^c		4.97	%		5.28	%		6.17	%^e		5.80	%		6.01	%
Portfolio turnover rate^d		28	%		15	%		13	%		15	%		2	%

^a	Commencement of operations.

^b	Not annualized.

^c	Annualized for periods of less than one year.

^d	Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

^e	Includes voluntary reimbursement from the investment adviser. If such reimbursement had not been made, the ratios of expenses to average net assets and net investment income to average net assets would have been 0.36% and 6.16%, respectively.

See notes to financial statements.


96		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to the Financial Statements

iSHARES^® TRUST

1. SIGNIFICANT ACCOUNTING POLICIES

iShares Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust was established as a Delaware statutory trust pursuant to an Agreement and Declaration of Trust dated December 16, 1999. As of April 30, 2005, the Trust offered 74 investment portfolios or funds.

These financial statements relate only to the iShares Dow Jones U.S. Basic Materials Sector, iShares Dow Jones U.S. Consumer Goods Sector (formerly the iShares Dow Jones U.S. Consumer Non-Cyclical Sector Index Fund), iShares Dow Jones U.S. Consumer Services Sector (formerly the iShares Dow Jones U.S. Consumer Cyclical Sector Index Fund), iShares Dow Jones U.S. Financial Sector, iShares Dow Jones U.S. Industrial Sector, iShares Dow Jones U.S. Financial Services, iShares Dow Jones U.S. Real Estate, iShares KLD Select Social and the iShares Cohen & Steers Realty Majors Index Funds (each a “Fund,” collectively the “Funds”).

The investment objective of each Fund is to seek investment results that correspond generally to the price and yield performance, before fees and expenses, of its underlying index, as indicated in the name of each Fund. The investment adviser uses a “passive” or index approach to achieve each Fund’s investment objective. Each of the Funds is classified as a non-diversified fund under the 1940 Act except for the iShares KLD Select Social Index Fund, which is classified as a diversified fund. Non-diversified funds generally hold stocks of fewer companies than diversified funds and may be more susceptible to the risks associated with these particular companies, or to a single economic, political or regulatory occurrence affecting these companies.

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

The following significant accounting policies are consistently followed by the Trust in the preparation of its financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for investment companies. The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

SECURITY VALUATION

The securities and other assets of each Fund are generally valued using market valuations. A market valuation generally means a valuation (i) obtained from an exchange, a pricing service, or a major market maker (or dealer), (ii) based on a price quotation or other equivalent indication of value supplied by an exchange, a pricing service, or a major market maker (or dealer), or (iii) based on amortized cost. In the case of shares of other funds that are not traded on an exchange, a market valuation means such fund’s published net asset value per share. The investment adviser may use various pricing services or discontinue the use of any pricing service. A price obtained from a pricing service based on such pricing service’s valuation matrix may be considered a market valuation. In the event that current market valuations are not readily available or such valuations do not reflect current market values, the affected investments will be valued using fair value pricing pursuant to the pricing policy and procedures approved by the Board of Trustees of the Trust (the “Board”).


NOTES TO THE FINANCIAL STATEMENTS		97

Notes to the Financial Statements (Continued)

iSHARES^® TRUST

SECURITY TRANSACTIONS AND INCOME RECOGNITION

Security transactions are accounted for on trade date. Dividend income is recognized on the ex-dividend date, net of any foreign taxes withheld at source, and interest income is accrued daily. Realized gains and losses on investment transactions are determined using the specific identification method.

EQUALIZATION

The iShares Dow Jones U.S. Real Estate Index Fund and the iShares Cohen & Steers Realty Majors Index Fund use the accounting practice of equalization. This accounting method is used to keep the continuing shareholders’ per share equity in undistributed net investment income from being affected by the continuous sales and redemptions of capital stock. Equalization is calculated on a per share basis whereby a portion of the proceeds from sales and costs of repurchases of capital stock is applied to undistributed net investment income. The amounts of equalization are disclosed in the Statements of Changes in Net Assets as undistributed net investment income included in the price of capital shares issued or redeemed.

DISTRIBUTIONS TO SHAREHOLDERS

Distributions to shareholders from net investment income, if any, are declared and distributed at least annually by each Fund. Distributions of net realized capital gains, if any, generally are declared and distributed once a year. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividends and distributions cannot be automatically reinvested in additional shares of the Funds.

As of April 30, 2005, the tax year-end of the Funds, the components of distributable earnings (accumulated losses) on a tax basis were as follows:


*iShares Index Fund*	Undistributed Ordinary Income		Unrealized Appreciation (Depreciation)			Capital and Other Losses			Net Distributable Earnings (Accumulated Losses)
Dow Jones U.S. Basic Materials Sector	$	429,693	$	(8,458,285	)	$	(736,105	)	$	(8,764,697	)
Dow Jones U.S. Consumer Goods Sector		351,487		(3,774,021	)		(6,981,365	)		(10,403,899	)
Dow Jones U.S. Consumer Services Sector		—		(31,044,368	)		(3,969,760	)		(35,014,128	)
Dow Jones U.S. Financial Sector		649,107		9,435,300			(1,794,094	)		8,290,313
Dow Jones U.S. Industrial Sector		3,482		2,850,588			(6,956,008	)		(4,101,938	)
Dow Jones U.S. Financial Services		478,440		2,774,269			(1,232,872	)		2,019,837
Dow Jones U.S. Real Estate		—		(21,563,141	)		(2,162,754	)		(23,725,895	)
KLD Select Social		32,043		(731,931	)		(2,672	)		(702,560	)
Cohen & Steers Realty Majors		—		141,146,462			(3,691,479	)		137,454,983

For the years ended April 30, 2005 and April 30, 2004, the tax characterization of distributions paid for each Fund was equal to the book characterization of distributions paid. The total distributions and distributions per share are disclosed in the accompanying Statements of Changes in Net Assets and the Financial Highlights for all Funds.


98		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to the Financial Statements (Continued)

iSHARES^® TRUST

FEDERAL INCOME TAXES

Each Fund is treated as a separate entity for federal income tax purposes. It is the policy of each Fund to qualify as a regulated investment company by complying with the provisions applicable to regulated investment companies, as defined under Subchapter M of the Internal Revenue Code of 1986, as amended, and to annually distribute substantially all of its net income and any net gains (taking into account any capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income and excise taxes. Accordingly, no provision for federal income taxes was required for the year ended April 30, 2005.

From November 1, 2004 to April 30, 2005, certain Funds incurred net realized capital losses. As permitted by tax regulations, these Funds have elected to defer those losses and treat them as arising in the year ending April 30, 2006, as follows:


*iShares Index Fund*	*Deferred* Net Realized Capital Losses
Dow Jones U.S. Consumer Goods Sector	$	5,000,801
Dow Jones U.S. Consumer Services Sector		2,090,429
Dow Jones U.S. Industrial Sector		10,582
Dow Jones U.S. Financial Services		22,964
Dow Jones U.S. Real Estate		766,002
KLD Select Social		2,672
Cohen & Steers Realty Majors		3,172,411

The Funds had tax basis net capital loss carryforwards as of April 30, 2005, the tax year-end of the Funds, as follows:


*iShares Index Fund*	Expiring 2009		Expiring 2010		Expiring 2011		Expiring 2012		Expiring 2013		*Total*
Dow Jones U.S. Basic Materials Sector	$	—	$	47,909	$	474,468	$	213,728	$	—	$	736,105
Dow Jones U.S. Consumer Goods Sector		12,169		410,794		786,981		439,017		331,603		1,980,564
Dow Jones U.S. Consumer Services Sector		—		214,348		640,467		434,021		590,495		1,879,331
Dow Jones U.S. Financial Sector		—		—		399,360		1,394,734		—		1,794,094
Dow Jones U.S. Industrial Sector		—		1,834,072		1,969,601		—		3,141,753		6,945,426
Dow Jones U.S. Financial Services		—		—		373,238		836,670		—		1,209,908
Dow Jones U.S. Real Estate		—		—		818,229		205,504		373,019		1,396,752
Cohen & Steers Realty Majors		—		—		—		—		519,068		519,068

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

For the year ended April 30, 2005, the Funds realized net capital gains or losses resulting from in-kind redemptions of large blocks of shares or multiples thereof (“Creation Units”). Because such gains or losses are not taxable to the Funds, and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gains or losses to paid-in-capital at the end of the Funds’ tax year. These reclassifications have no effect on net assets or net asset values per share. The net realized in-kind gains or losses for the year ended April 30, 2005 are disclosed in the Funds’ Statements of Operations.


NOTES TO THE FINANCIAL STATEMENTS		99

Notes to the Financial Statements (Continued)

iSHARES^® TRUST

As of April 30, 2005, the aggregate unrealized appreciation and depreciation based on cost for federal income tax purposes were as follows:


*iShares Index Fund*	*Tax Cost*		Unrealized Appreciation		Unrealized Depreciation			Net Unrealized Appreciation (Depreciation)
Dow Jones U.S. Basic Materials Sector	$	455,544,831	$	13,709,019	$	(22,167,304	)	$	(8,458,285	)
Dow Jones U.S. Consumer Goods Sector		454,186,297		22,415,447		(26,189,468	)		(3,774,021	)
Dow Jones U.S. Consumer Services Sector		303,480,543		1,985,447		(33,029,815	)		(31,044,368	)
Dow Jones U.S. Financial Sector		313,917,864		24,449,022		(15,013,722	)		9,435,300
Dow Jones U.S. Industrial Sector		251,262,836		12,678,489		(9,827,901	)		2,850,588
Dow Jones U.S. Financial Services		149,228,357		7,932,392		(5,158,123	)		2,774,269
Dow Jones U.S. Real Estate		912,630,030		8,720,102		(30,283,243	)		(21,563,141	)
KLD Select Social		42,377,315		—		(731,931	)		(731,931	)
Cohen & Steers Realty Majors		1,356,362,444		141,351,351		(204,889	)		141,146,462

REPURCHASE AGREEMENTS

Each Fund may enter into repurchase agreements with banks and securities dealers. These transactions involve the purchase of securities with a simultaneous commitment to resell the securities to the bank or the dealer at an agreed-upon date and price. A repurchase agreement is accounted for as an investment by the Fund, collateralized by securities, which are delivered to the Fund’s custodian or to an agent bank under a tri-party agreement. The securities are marked-to-market daily and additional securities are acquired as needed, to ensure that their value equals or exceeds the repurchase price plus accrued interest. As of April 30, 2005, a portion of the cash collateral for securities on loan for the Funds was invested in repurchase agreements as disclosed in each Fund’s Schedule of Investments. For further information, see Note 5, below.

2. AGREEMENTS AND OTHER TRANSACTIONS WITH AFFILIATES

Pursuant to an Investment Advisory Agreement with the Trust, Barclays Global Fund Advisors (“BGFA”) manages the investment of each Fund’s assets. BGFA is a California corporation indirectly owned by Barclays Bank PLC. Under the Investment Advisory Agreement, BGFA is responsible for all expenses (“Covered Expenses”) of the Trust, including the cost of transfer agency, custody, fund administration, legal, audit and other services, except interest, taxes, brokerage commissions and other expenses connected with the execution of portfolio transactions, distribution fees and extraordinary expenses. Expenses related to the organization and initial registration of the Trust were borne by BGFA.

For its investment advisory services to each Fund, BGFA is entitled to an annual investment advisory fee based on the average daily net assets of each Fund as follows:


*iShares Index Fund*	Investment Advisory Fee
Dow Jones U.S. Basic Materials Sector	0.60	%
Dow Jones U.S. Consumer Goods Sector	0.60
Dow Jones U.S. Consumer Services Sector	0.60
Dow Jones U.S. Financial Sector	0.60
Dow Jones U.S. Industrial Sector	0.60
Dow Jones U.S. Financial Services	0.60
Dow Jones U.S. Real Estate	0.60
KLD Select Social	0.50
Cohen & Steers Realty Majors	0.35


100		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to the Financial Statements (Continued)

iSHARES^® TRUST

Investors Bank & Trust Company (“Investors Bank”) serves as administrator, custodian, and transfer agent for the Trust. As compensation for its services, Investors Bank receives certain out-of-pocket costs, transaction fees, and asset-based fees, which are accrued daily and paid monthly. These fees are Covered Expenses as defined above.

Pursuant to an exemptive order issued by the U.S. Securities and Exchange Commission (“SEC”), the Funds are permitted to lend portfolio securities to Barclays Capital, Inc. (“BarCap”). Pursuant to the same exemptive order, Barclays Global Investors, N.A. (“BGI”) serves as securities lending agent for the Trust. BarCap and BGI are affiliates of BGFA, the Funds’ investment adviser. As securities lending agent, BGI receives, as fees, a share of the income earned on investment of the cash collateral received for the loan of securities. For the year ended April 30, 2005, BGI earned securities lending agent fees as follows:


*iShares Index Fund*	Securities Lending Agent Fees
Dow Jones U.S. Basic Materials Sector	$	27,235
Dow Jones U.S. Consumer Goods Sector		39,177
Dow Jones U.S. Consumer Services Sector		29,929
Dow Jones U.S. Financial Sector		27,347
Dow Jones U.S. Industrial Sector		16,496
Dow Jones U.S. Financial Services		7,299
Dow Jones U.S. Real Estate		441,938
KLD Select Social		20
Cohen & Steers Realty Majors		98,940

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

Barclays Global Investors Services (“BGIS”), a subsidiary of BGI, may serve as a broker-dealer for the Funds. For the year ended April 30, 2005, BGIS did not receive any brokerage commissions from the Funds.

Pursuant to Rule 17a-7 under the 1940 Act, certain Funds executed cross trades for the year ended April 30, 2005. Cross trading is the buying or selling of portfolio securities between funds to which BGFA (or an affiliate) serves as investment adviser. The Board reviewed all such transactions executed during the first eleven months of the fiscal year ended April 30, 2005 and concluded that they were in compliance with the requirements and restrictions set forth by Rule 17a-7. The Board is scheduled at its next meeting to review all such transactions executed during the last month of the fiscal year.

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


NOTES TO THE FINANCIAL STATEMENTS		101

Notes to the Financial Statements (Continued)

iSHARES^® TRUST

The following table provides information about the investment by each Fund in shares of issuers of which BGFA is an affiliate for the year ended April 30, 2005, including income earned from these affiliated issuers.


*iShares Index Fund and* *Name of Affiliated Issuer*	Number of Shares Held Beginning of Year *(in 000s)*	Gross Additions (in 000s)	Gross Reductions (in 000s)	Number of Shares *Held End* *of Year* *(in 000s)*	*Value at* *End of Year*		Interest Income
Dow Jones U.S. Basic Materials Sector
IMMF	259	23,728	23,358	629	$	628,549	$	4,563

Dow Jones U.S. Consumer Goods Sector
IMMF	68	23,369	23,234	203		202,524		4,439

Dow Jones U.S. Consumer Services Sector
IMMF	143	13,605	13,325	423		422,727		2,571

Dow Jones U.S. Financial Sector
IMMF	277	25,920	25,958	239		238,964		4,274

Dow Jones U.S. Industrial Sector
IMMF	51	13,818	13,811	58		58,163		2,603

Dow Jones U.S. Financial Services
IMMF	80	11,366	11,312	134		134,288		1,826

Dow Jones U.S. Real Estate
IMMF	498	144,261	143,472	1,287		1,287,290		17,549

KLD Select Social ^a
IMMF	—	1,263	1,248	15		15,407		139

Cohen & Steers Realty Majors
IMMF	593	304,314	304,712	195		194,603		36,135

^a	The beginning of the period is January 24, 2005, the inception date of the Fund.

During the year ended April 30, 2005, the Funds invested cash collateral from securities on loan in the GMMF, IMMF and PMMF. Due to the nature of the structure of the joint account used for the investment of the collateral for securities on loan, the information reported above for each Fund does not include the Fund’s holdings of the GMMF, IMMF and PMMF in connection with the investment of collateral for securities on loan.

As of April 30, 2005, certain trustees and officers of the Trust are also officers of BGI.


102		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to the Financial Statements (Continued)

iSHARES^® TRUST

3. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the year ended April 30, 2005 were as follows:


*iShares Index Fund*	*Purchases*		*Sales*
Dow Jones U.S. Basic Materials Sector	$	20,306,762	$	20,342,238
Dow Jones U.S. Consumer Goods Sector		32,875,345		32,098,351
Dow Jones U.S. Consumer Services Sector		26,305,532		26,490,154
Dow Jones U.S. Financial Sector		19,105,466		18,548,566
Dow Jones U.S. Industrial Sector		10,197,913		10,163,871
Dow Jones U.S. Financial Services		8,660,018		8,248,465
Dow Jones U.S. Real Estate		143,666,489		126,557,722
KLD Select Social		746,767		2,375,305
Cohen & Steers Realty Majors		327,620,281		292,450,152

In-kind transactions (see Note 4) for the year ended April 30, 2005 were as follows:


*iShares Index Fund*	*In-kind Purchases*		*In-kind Sales*
Dow Jones U.S. Basic Materials Sector	$	313,184,879	$	241,837,923
Dow Jones U.S. Consumer Goods Sector		271,696,867		132,425,206
Dow Jones U.S. Consumer Services Sector		275,373,532		240,766,681
Dow Jones U.S. Financial Sector		103,080,820		69,233,772
Dow Jones U.S. Industrial Sector		113,956,488		53,090,686
Dow Jones U.S. Financial Services		43,533,507		16,836,423
Dow Jones U.S. Real Estate		4,556,806,846		4,402,137,442
KLD Select Social		45,698,177		1,801,443
Cohen & Steers Realty Majors		863,529,037		589,161,401

4. CAPITAL SHARE TRANSACTIONS

As of April 30, 2005, there were an unlimited number of no par value capital shares of beneficial interest authorized by the Trust. Capital shares are issued and redeemed by each Fund only in Creation Units or multiples thereof. Except when aggregated in Creation Units, shares of each Fund are not redeemable. Transactions in capital shares for each Fund are disclosed in detail in the Statements of Changes in Net Assets.

The consideration for the purchase of Creation Units of a Fund generally consists of the in-kind contribution of a designated portfolio of equity securities constituting a portfolio sampling representation of the securities involved in the relevant Fund’s underlying index and an amount of cash. A purchase transaction fee and a redemption transaction fee are charged to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units.


NOTES TO THE FINANCIAL STATEMENTS		103

Notes to the Financial Statements (Continued)

iSHARES^® TRUST

5. LOANS OF PORTFOLIO SECURITIES

Each Fund may lend its investment securities to approved borrowers, such as brokers, dealers, and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. Government. The initial collateral received by each Fund is required to have a value of at least 102% of the market value of the loaned securities. The collateral is maintained thereafter, at a value equal to at least 100% of the current market value of the securities on loan. The risks to the Funds of securities lending are that the borrower may not provide additional collateral when required or may not return the securities when due.

As of April 30, 2005, the Funds had loaned securities which were collateralized by cash. The cash collateral received was invested in a joint account with other investment funds managed by BGFA. The joint account invests in securities with remaining maturities of 397 days or less, repurchase agreements and money market mutual funds, including money market funds managed by BGFA. Repurchase agreements held in the joint account are fully collateralized by U.S. Government securities. Income from the joint account is allocated daily to each Fund, based on each Fund’s portion of the total cash collateral received. The market value of the securities on loan as of April 30, 2005 and the value of the related collateral are disclosed in the Statements of Assets and Liabilities. Securities lending income, which is disclosed in the Funds’ Statements of Operations, is presented net of rebates paid to, or fees paid by, borrowers.

6. SUBSEQUENT EVENT

The Board authorized a two-for-one stock split of the iShares Dow Jones U.S. Real Estate Index Fund and iShares Cohen & Steers Realty Majors Index Fund effective June 9, 2005.


104		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Trustees of

iShares Trust:

In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of the funds comprising the iShares Dow Jones Index Funds, iShares KLD Select Social Index Fund and the iShares Cohen & Steers Realty Majors Index Fund (the “Funds”), as listed on the table of contents, at April 30, 2005, the results of each of their operations for the period then ended, and the changes in each of their net assets and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards which require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at April 30, 2005 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California

June 20, 2005


REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM		105

Tax Information (Unaudited)

iSHARES^® TRUST

For corporate shareholders, a portion of the income dividends paid by certain Funds during the year ended April 30, 2005 qualified for the dividends-received deduction, as follows:


*iShares Index Fund*	Dividends Received Deduction
Dow Jones U.S. Basic Materials Sector	100.00	%
Dow Jones U.S. Consumer Goods Sector	100.00
Dow Jones U.S. Consumer Services Sector	100.00
Dow Jones U.S. Financial Sector	99.88
Dow Jones U.S. Industrial Sector	100.00
Dow Jones U.S. Financial Services	100.00
KLD Select Social	100.00

Under Section 854(b)(2) of the Internal Revenue Code (the “Code”), certain Funds hereby designate the following maximum amounts as qualified dividends for purposes of the maximum rate under Section 1(h)(11) of the Code for the year ended April 30, 2005:


*iShares Index Fund*	Qualified Dividend Income
Dow Jones U.S. Basic Materials Sector	$	5,508,202
Dow Jones U.S. Consumer Goods Sector		5,394,256
Dow Jones U.S. Consumer Services Sector		502,432
Dow Jones U.S. Financial Sector		5,651,996
Dow Jones U.S. Industrial Sector		2,163,686
Dow Jones U.S. Financial Services		2,713,375
KLD Select Social		80,829


106		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited)

iSHARES^® TRUST

The tables that follow present information about the differences between the daily market price on secondary markets for shares of an iShares Fund and that Fund’s net asset value. Net asset value, or “NAV,” is the price per share at which each Fund issues and redeems shares. It is calculated in accordance with the standard formula for valuing mutual fund shares. The “Market Price” of each iShares Fund generally is determined using the midpoint between the highest bid and the lowest offer on the stock exchange on which the shares of such Fund is listed for trading, as of the time that the Fund’s NAV is calculated. Each Fund’s Market Price may be at, above or below its NAV. The NAV of each Fund will fluctuate with changes in the market value of its portfolio holdings. The Market Price of each Fund will fluctuate in accordance with changes in its NAV, as well as market supply and demand.

Premiums or discounts are the differences (expressed as a percentage) between the NAV and Market Price of a Fund on a given day, generally at the time NAV is calculated. A premium is the amount that a Fund is trading above the reported NAV, expressed as a percentage of the NAV. A discount is the amount that a Fund is trading below the reported NAV, expressed as a percentage of the NAV.

The following information shows the frequency distributions of premiums and discounts for each of the iShares Funds included in this report, except for iShares KLD Select Social Index Fund. The information shown for each Fund is for each full calendar quarter completed after the inception date of such Fund through March 31, 2005, the date of the most recent calendar quarter-end. Information for the iShares KLD Select Social Index Fund is not presented, as the Fund commenced operations on January 24, 2005, and did not have a full quarter of information as of March 31, 2005. The specific periods covered for each Fund are disclosed in the chart for such Fund.

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

iShares Dow Jones U.S. Basic Materials Sector Index Fund

Period Covered: July 1, 2000 through March 31, 2005


*Premium/Discount Range*	Number of Days	Percentage of Total Days
Greater than 1.0%	2	0.17	%
Greater than 0.5% and Less than 1.0%	19	1.60
Between 0.5% and –0.5%	1,156	97.30
Less than –0.5%	11	0.93

	1,188	100.00	%

iShares Dow Jones U.S. Consumer Goods Sector Index Fund

Period Covered: July 1, 2000 through March 31, 2005


*Premium/Discount Range*	Number of Days	Percentage of Total Days
Greater than 1.0%	2	0.17	%
Greater than 0.5% and Less than 1.0%	10	0.84
Between 0.5% and – 0.5%	1,161	97.72
Less than –0.5% and Greater than –1.0%	6	0.51
Less than –1.0%	9	0.76

	1,188	100.00	%


SUPPLEMENTAL INFORMATION		107

Supplemental Information (Unaudited) (Continued)

iSHARES^® TRUST

iShares Dow Jones U.S. Consumer Services Sector Index Fund

Period Covered: July 1, 2000 through March 31, 2005


*Premium/Discount Range*	*Number* *of Days*	Percentage of Total Days
Greater than 0.5%	9	0.76	%
Between 0.5% and –0.5%	1,174	98.82
Less than –0.5%	5	0.42

	1,188	100.00	%

iShares Dow Jones U.S. Financial Sector Index Fund

Period Covered: July 1, 2000 through March 31, 2005


*Premium/Discount Range*	*Number* *of Days*	Percentage of Total Days
Greater than 0.5%	6	0.51	%
Between 0.5% and –0.5%	1,169	98.39
Less than –0.5% and Greater than –1.0%	9	0.76
Less than –1.0%	4	0.34

	1,188	100.00	%

iShares Dow Jones U.S. Industrial Sector Index Fund

Period Covered: July 1, 2000 through March 31, 2005


*Premium/Discount Range*	Number of Days	*Percentage of* *Total Days*
Greater than 0.5%	6	0.51	%
Between 0.5% and –0.5%	1,171	98.56
Less than –0.5% and Greater than –1.0%	7	0.59
Less than –1.0%	4	0.34

	1,188	100.00	%

iShares Dow Jones U.S. Financial Services Index Fund

Period Covered: July 1, 2000 through March 31, 2005


*Premium/Discount Range*	Number of Days	*Percentage of* *Total Days*
Greater than 0.5%	6	0.51	%
Between 0.5% and –0.5%	1,169	98.40
Less than –0.5%	13	1.09

	1,188	100.00	%


108		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^® TRUST

iShares Dow Jones U.S. Real Estate Index Fund

Period Covered: July 1, 2000 through March 31, 2005


*Premium/Discount Range*	*Number* *of Days*	*Percentage of* *Total Days*
Greater than 0.5%	5	0.42	%
Between 0.5% and –0.5%	1,173	98.74
Less than –0.5%	10	0.84

	1,188	100.00	%

iShares Cohen & Steers Realty Majors Index Fund

Period Covered: April 1, 2001 through March 31, 2005


*Premium/Discount Range*	Number of Days	*Percentage of* *Total Days*
Greater than 0.5%	6	0.60	%
Between 0.5% and –0.5%	988	98.80
Less than –0.5%	6	0.60

	1,000	100.00	%


SUPPLEMENTAL INFORMATION		109

Trustee Information (Unaudited)

iSHARES^® TRUST

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

iShares Trust, iShares, Inc., Barclays Global Investors Funds and Master Investment Portfolio are considered to be members of the same fund complex, as defined in Form N-1A under the 1940 Act. Each Trustee of iShares Trust also serves as a Director for iShares, Inc. and oversees 98 portfolios within the fund complex. In addition, Lee T. Kranefuss and Richard K. Lyons each serves as a Trustee for Barclays Global Investors Funds and Master Investment Portfolio and oversees 125 portfolios within the fund complex.

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

Interested Trustees


Name, Year of Birth	Position(s), Length of Service	Principal Occupation(s) During Past 5 Years	Other Directorships Held
*Lee T. Kranefuss, 1961	Trustee, Chairman, and President (since June 18, 2003).	Chief Executive Officer of Intermediary Investor and Exchange Traded Products Business of BGI (since 2003); Chief Executive Officer of the Individual Investor Business of BGI (1997-2003).	Director (since 2003) of iShares, Inc.; Trustee (since 2001) of Barclays Global Investors Funds and Master Investment Portfolio; Trustee (since 2003) of BGI Cayman Prime Money Market Fund; Director (since 2003) of iShares PLC and EETF PLC (Dublin).

*John E. Martinez, 1962	Trustee (since December 5, 2003).	Co-CEO of Global Index and Markets Group of BGI (2001-2003); Chairman of Barclays Global Investors Services (2000-2003); CEO of Capital Markets Group of BGI (1996-2001).	Director (since 2005) of Real Estate Equity Exchange; Director (since 2003) of Larkin Street Youth Services; Director (2000-2002) of Barclays Global Investors UK Holdings.

*	Lee T. Kranefuss and John E. Martinez are considered to be “interested persons” (as defined in the 1940 Act) of the Trust due to their affiliations with BGFA, the Funds’ investment adviser, and BGFA’s affiliates.

Independent Trustees

Name, Year of Birth

Position(s),

Length of Service

Principal Occupation(s)

During Past 5 Years

Other Directorships Held

Richard K. Lyons, 1961

Trustee (since February 15, 2000).

Acting Dean (since 2004) and Sylvan Coleman Professor of Finance (since 1993) University of California, Berkeley: Haas School of Business; Consultant for IMF World Bank, Federal Reserve Bank, and Citibank N.A. (since 2000).

Director (since 2003) of the BGI Cayman Prime Money Market Fund, Ltd.; Trustee (since 2001) of Master Investment Portfolio and Barclays Global Investors Funds; Director (since 2002) of iShares, Inc.; Trustee and Chairman (since 1995) of Matthews Asian Funds (oversees 6 portfolios).


110		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Trustee Information (Unaudited) (Continued)

iSHARES^® TRUST


Name, Year of Birth	Position(s), Length of Service	Principal Occupation(s) During Past 5 Years	Other Directorships Held
George G. C. Parker, 1939	Trustee (since February 15, 2000).	Dean Witter Distinguished Professor of Finance (since 1994); Senior Associate Dean for Academic Affairs, Director of MBA Program, Stanford University: Graduate School of Business (1993-2001).	Director (since 2002) of iShares, Inc.; Director (since 1998) of Affinity Group Holdings; Director (since 1985) of Bailard, Biehl and Kaiser, Inc.; Director (since 1978) of California Casualty Group of Insurance Companies; Director (since 1996) of Continental Airlines, Inc.; Director (since 1996) of Community First Financial Group; Director (since 1999) of Tejon Ranch Company; Director (since 2003) of First Republic Bank; Director (since 2000) of Converium Re-Insurance; Director (since 2004) of Threshold Pharmaceuticals.

W. Allen Reed, 1947	Trustee (since January 1, 2002).	President and Chief Executive Officer of General Motors Investment Management Corporation (since 1994); Chief Executive Officer of General Motors Trust Bank (since 2003); Chief Executive Officer of General Motors Trust Company (since 1999).	Director (since 1996) of iShares, Inc.; Director (since 1994) of General Motors Investment Management Corporation; Director and Chairman (since 2003) of General Motors Trust Bank; Director and Chairman (since 1999) of General Motors Trust Company; Director (since 2002) of GMAM ARS Fund I; Director (since 1994) of General Motors Acceptance Corporation; Director (since 1994) of GMAC Insurance Holdings, Inc.; Director (since 1995) of Global Emerging Markets Fund; Director (since 2000) of Temple Inland Industries; Member (since 2004) of Board of Executives of New York Stock Exchange; Member (since 1995) of New York State Retirement System Advisory Board; Member (since 2004) of the Auburn University Foundation Fund Investment Committee.


TRUSTEE INFORMATION		111

Trustee Information (Unaudited) (Continued)

iSHARES^® TRUST

Officer

Name, Year of Birth

Position(s),

Length of Service

Principal Occupation(s)

During Past 5 Years

Other Directorships Held

Michael A. Latham, 1965

Secretary, Treasurer and Principal Financial Officer (since February 28, 2002).

Chief Operating Officer of Intermediary Investor and Exchange Traded Products Business of BGI (since 2003); Director of Mutual Fund Delivery in the U.S. Individual Investor Business of BGI (2000-2003); Head of Operations, BGI Europe (1997-2000).

None.


112		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes:


NOTES		113

The iShares^® Family of Funds

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

iShares S&P Domestic Index Funds

iShares S&P 1500 (ISI)

iShares S&P 500 (IVV)

iShares S&P 500/BARRA Growth (IVW)

iShares S&P 500/BARRA Value (IVE)

iShares S&P MidCap 400 (IJH)

iShares S&P MidCap 400/BARRA Growth (IJK)

iShares S&P MidCap 400/BARRA Value (IJJ)

iShares S&P SmallCap 600 (IJR)

iShares S&P SmallCap 600/BARRA Growth (IJT)

iShares S&P SmallCap 600/BARRA Value (IJS)

iShares S&P 100 (OEF)

iShares Sector and Specialty Index Funds

iShares Cohen & Steers Realty Majors (ICF)

iShares Dow Jones Select Dividend (DVY)

iShares Dow Jones Transportation Average (IYT)

iShares Dow Jones U.S. Basic Materials Sector (IYM)

iShares Dow Jones U.S. Consumer Goods Sector (IYK)

iShares Dow Jones U.S. Consumer Services Sector (IYC)

iShares Dow Jones U.S. Energy Sector (IYE)

iShares Dow Jones U.S. Financial Sector (IYF)

iShares Dow Jones U.S. Financial Services (IYG)

iShares Dow Jones U.S. Healthcare Sector (IYH)

iShares Dow Jones U.S. Industrial Sector (IYJ)

iShares Dow Jones U.S. Real Estate (IYR)

iShares Dow Jones U.S. Technology Sector (IYW)

iShares Dow Jones U.S. Telecommunications Sector (IYZ)

iShares Dow Jones U.S. Total Market (IYY)

iShares Dow Jones U.S. Utilities Sector (IDU)

iShares Goldman Sachs Natural Resources (IGE)

iShares Goldman Sachs Networking (IGN)

iShares Goldman Sachs Semiconductor (IGW)

iShares Goldman Sachs Software (IGV)

iShares Goldman Sachs Technology (IGM)

iShares KLD Select Social^SM (KLD)

iShares Nasdaq Biotechnology (IBB)

iShares S&P Global Energy Sector (IXC)

iShares S&P Global Financials Sector (IXG)

iShares S&P Global Healthcare Sector (IXJ)

iShares S&P Global Technology Sector (IXN)

iShares S&P Global Telecommunications Sector (IXP)

iShares Russell Index Funds

iShares Russell 3000 (IWV)

iShares Russell 3000 Growth (IWZ)

iShares Russell 3000 Value (IWW)

iShares Russell 1000 (IWB)

iShares Russell 1000 Growth (IWF)

iShares Russell 1000 Value (IWD)

iShares Russell Midcap (IWR)

iShares Russell Midcap Growth (IWP)

iShares Russell Midcap Value (IWS)

iShares Russell 2000 (IWM)

iShares Russell 2000 Growth (IWO)

iShares Russell 2000 Value (IWN)

iShares International Index Funds

iShares FTSE/Xinhua China 25 (FXI)

iShares MSCI Australia (EWA)

iShares MSCI Austria (EWO)

iShares MSCI Belgium (EWK)

iShares MSCI Brazil (EWZ)

iShares MSCI Canada (EWC)

iShares MSCI EAFE (EFA)

iShares MSCI Emerging Markets (EEM)

iShares MSCI EMU (EZU)

iShares MSCI France (EWQ)

iShares MSCI Germany (EWG)

iShares MSCI Hong Kong (EWH)

iShares MSCI Italy (EWI)

iShares MSCI Japan (EWJ)

iShares MSCI Malaysia (EWM)

iShares MSCI Mexico (EWW)

iShares MSCI Netherlands (EWN)

iShares MSCI Pacific ex-Japan (EPP)

iShares MSCI Singapore (EWS)

iShares MSCI South Africa (EZA)

iShares MSCI South Korea (EWY)

iShares MSCI Spain (EWP)

iShares MSCI Sweden (EWD)

iShares MSCI Switzerland (EWL)

iShares MSCI Taiwan (EWT)

iShares MSCI United Kingdom (EWU)

iShares S&P Europe 350 (IEV)

iShares S&P Global 100 (IOO)

iShares S&P Latin America 40 (ILF)

iShares S&P/TOPIX 150 (ITF)

iShares Bond Funds

iShares GS $ InvesTop^™ Corporate (LQD)

iShares Lehman Aggregate (AGG)

iShares Lehman TIPS (TIP)

iShares Lehman 1-3 Year Treasury (SHY)

iShares Lehman 7-10 Year Treasury (IEF)

iShares Lehman 20+ Year Treasury (TLT)

iShares NYSE Index Funds

iShares NYSE 100 (NY)

iShares NYSE Composite (NYC)

iShares Morningstar Index Funds

iShares Morningstar Large Core (JKD)

iShares Morningstar Large Growth (JKE)

iShares Morningstar Large Value (JKF)

iShares Morningstar Mid Core (JKG)

iShares Morningstar Mid Growth (JKH)

iShares Morningstar Mid Value (JKI)

iShares Morningstar Small Core (JKJ)

iShares Morningstar Small Growth (JKK)

iShares Morningstar Small Value (JKL)

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

An investment in the Fund(s) is not a deposit of a bank and it is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.

This advertising section does not constitute part of the 2005 Annual Report.

1667-iS-0505


114		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

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

The iShares Funds are not sponsored, endorsed, issued, sold or promoted by DOW Jones & Company, Inc., KLD Research & Analytics, Inc. or Cohen & Steers Capital Management, Inc., nor do these companies make any representation regarding the advisability of investing in the iShares Funds.

©2005 Barclays Global Investors. All rights reserved. iShares^® is a registered trademark of Barclays Global Investors, N.A. All other trademarks, servicemarks or registered trademarks are the property of their respective owners.

Investing involves risk, including possible loss of principal.

A description of the policies that the Funds use to determine how to vote proxies relating to portfolio securities and information about how the Funds voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30, 2004 is available without charge, upon request, by calling toll-free 1 800 474 2737; on the Funds’ website at www.iShares.com; and on the Securities and Exchange Commission’s website at www.sec.gov.

The Funds file their complete schedules of portfolio holdings with the Securities and Exchange Commission for the first and third quarter of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the Commission’s website at www.sec.gov. When filed, the Funds’ Forms N-Q may be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1 800 SEC 0330. The Funds also disclose their complete schedules of portfolio holdings on a daily and monthly basis on the Funds’ website at www.iShares.com.

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

BGI-F-015-06005

Item 1.

Reports to Stockholders

LOGO

iShares^®

Dear iShares Shareholder:

To sign up for electronic delivery, please follow these simple steps:

1.	Go to www.icsdelivery.com.

2.	From the main page, select the first letter of your brokerage firm’s name.

3.	Select your brokerage institution from the list that follows. If your brokerage firm is not listed, electronic delivery may not be available. Please contact your brokerage firm or financial adviser.

4.	Fill out the appropriate information and provide the e-mail address where you would like your information sent.

Table of Contents


Management’s Discussion of Fund Performance		1
Shareholder Expenses		17
Schedules of Investments		19
iShares Dow Jones U.S. Total Market Index Fund		19
iShares Dow Jones U.S. Energy Sector Index Fund		45
iShares Dow Jones U.S. Healthcare Sector Index Fund		50
iShares Dow Jones U.S. Technology Sector Index Fund		57
iShares Dow Jones U.S. Telecommunications Sector Index Fund		65
iShares Dow Jones U.S. Utilities Sector Index Fund		70
iShares Dow Jones Select Dividend Index Fund		75
iShares Dow Jones Transportation Average Index Fund		78
Financial Statements		83
Financial Highlights		90
Notes to the Financial Statements		98
Report of Independent Registered Public Accounting Firm		105
Tax Information (Unaudited)		106
Supplemental Information (Unaudited)		107
Trustee Information (Unaudited)		110
iShares Family of Funds		114

Management’s Discussion of Fund Performance

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

Performance as of 4/30/05


Average Annual Total Returns											Cumulative Total Returns
*Year Ended 4/30/05*					*Inception to 4/30/05*						*Inception to 4/30/05*
*NAV*	*MARKET*		*INDEX*		*NAV*		*MARKET*		*INDEX*		*NAV*		*MARKET*		*INDEX*
7.05%	7.01	%	7.24	%	(2.64	)%	(2.65	)%	(2.46	)%	(12.27	)%	(12.28	)%	(11.45	)%

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until several days after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (6/16/00), the NAV of the Fund is used as a proxy for the secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

GROWTH OF $10,000 INVESTMENT

SINCE INCEPTION AT NET ASSET VALUE

LOGO


MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE		1

PORTFOLIO ALLOCATION

As of 4/30/05


*Sector*	*% of* *Net Assets*
Consumer Non-Cyclical	22.29	%
Financial	20.55
Industrial	11.05
Technology	11.02
Communications	10.94
Consumer Cyclical	9.36
Energy	8.35
Utilities	3.56
Basic Materials	2.75
Diversified	0.02
Short-Term and Other Net Assets	0.11

TOTAL	100.00	%

TOP TEN FUND HOLDINGS

As of 4/30/05


*Security*	*% of* *Net* *Assets*
General Electric Co.	3.10	%
Exxon Mobil Corp.	2.98
Microsoft Corp.	1.98
Citigroup Inc.	1.98
Pfizer Inc.	1.66
Johnson & Johnson	1.65
Bank of America Corp.	1.47
Intel Corp.	1.20
Procter & Gamble Co.	1.11
Altria Group Inc.	1.08

TOTAL	18.21	%

The iShares Dow Jones U.S. Total Market Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Dow Jones U.S. Total Market Index (the “Index”). The Index measures the performance of the U.S. equity broad market. The Fund invests in a representative sample of securities in the Index, which have a similar investment profile as the Index. For the one-year period ended April 30, 2005 (the “reporting period”), the Fund returned 7.05%, while the Index returned 7.24%.

Although broad equity markets, as measured by the Index, experienced some volatility during the reporting period, they generally delivered gains. On the economic front, news was generally positive. Gross domestic product data showed signs of moderate economic growth for each of the four quarters in the reporting period, although growth levels tended to fall below many economists’ forecasts. Employment figures also strengthened during the course of the reporting period. Oil prices soared during the reporting period, topping $57 per barrel in early April, leading to concerns about inflation. The Federal Reserve Board raised short-term interest rates seven times during the reporting period, overall from 1.00% to 2.75%. In the final months of the reporting period, the concerns about high oil prices and the prospect of further increases in interest rates appeared to dampen investor enthusiasm, and markets generally retraced a portion of the gains made earlier in the reporting period.

Within the Index, sector performance was mostly positive. In general, energy-related companies and utilities were the strongest performers, benefiting largely from higher oil and gas prices. Increased economic activity tended to help the materials and industrials sectors. The financial sector, the largest sector in the Index, also delivered gains overall, although returns within the sector were mixed. The sole industry sector in the Index to decline was information technology.

Performance for the reporting period was mixed among the Fund’s ten largest holdings as of April 30, 2005. Diversified oil company Exxon Mobil Corp. was the top performer for the reporting period, followed by healthcare company Johnson & Johnson. General Electric Co., the Fund’s largest holding, also performed well, as did Altria Group Inc. Pharmaceutical giant Pfizer Inc. suffered the largest decline among the Fund’s ten largest holdings. Intel Corp. and Citigroup Inc. also declined for the reporting period.


2		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance

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

Performance as of 4/30/05


Average Annual Total Returns											Cumulative Total Returns
*Year Ended 4/30/05*					*Inception to 4/30/05*						*Inception to 4/30/05*
*NAV*	*MARKET*		*INDEX*		*NAV*		*MARKET*		*INDEX*		*NAV*		*MARKET*		*INDEX*
34.26%	33.83	%	36.83	%	8.42	%	8.40	%	9.13	%	48.44	%	48.28	%	53.16	%

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

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until several days after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (6/16/00), the NAV of the Fund is used as a proxy for the secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

GROWTH OF $10,000 INVESTMENT

SINCE INCEPTION AT NET ASSET VALUE

LOGO


MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE		3

PORTFOLIO ALLOCATION

As of 4/30/05


*Industry*	% of Net Assets
Oil & Gas	85.23	%
Oil & Gas Services	12.23
Pipelines	2.53
Short-Term and Other Net Assets	0.01

TOTAL	100.00	%

TOP TEN FUND HOLDINGS

As of 4/30/05


*Security*	% of Net Assets
Exxon Mobil Corp.	24.40	%
ChevronTexaco Corp.	18.69
ConocoPhillips	5.80
Occidental Petroleum Corp.	4.94
Schlumberger Ltd.	4.57
Burlington Resources Inc.	3.15
Devon Energy Corp.	2.51
Apache Corp.	2.36
Anadarko Petroleum Corp.	2.36
Unocal Corp.	2.36

TOTAL	71.14	%

The iShares Dow Jones U.S. Energy Sector Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Dow Jones U.S. Oil & Gas Index (the “Index”)*. The Index measures the performance of the oil and gas sector of the U.S. equity market and includes companies in the following sectors: oil and gas producers, oil equipment services and distribution. The Fund invests in a representative sample of securities in the Index, which have a similar investment profile as the Index. For the one-year period ended April 30, 2005 (the “reporting period”), the Fund returned 34.26%, while the Index returned 36.83%.

The upswing in oil prices during the reporting period translated into gains for the energy sector, which was one of the best performers of all the Dow Jones sectors for the reporting period. During the course of the reporting period, the price of oil escalated from around $38 per barrel to more than $57 in early April. The higher prices helped fuel revenues for virtually all types of companies held by the Fund, from the smaller exploration companies to the large, diversified oil companies.

All of the Fund’s ten largest holdings as of April 30, 2005, which comprised about 71% of the Fund’s net assets, posted double-digit gains for the reporting period. Oil exploration and production company Unocal Corp. delivered the strongest performance, followed by Devon Energy Corp. and diversified oil company ConocoPhilips. Occidental Petroleum Corp. and Burlington Resources Inc. also logged strong gains for the reporting period. Among the Fund’s ten largest holdings as of April 30, 2005, diversified oil company ChevronTexaco Corp. was the weakest performer for the reporting period, although it posted double-digit gains.

*	Prior to December 20, 2004, the Index was known as the Dow Jones U.S. Energy Sector Index.


4		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance

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

Performance as of 4/30/05


Average Annual Total Returns											Cumulative Total Returns
*Year Ended 4/30/05*					*Inception to 4/30/05*						*Inception to 4/30/05*
*NAV*	*MARKET*		*INDEX*		*NAV*		*MARKET*		*INDEX*		*NAV*		*MARKET*		*INDEX*
3.18%	2.82	%	3.82	%	0.92	%	0.91	%	1.55	%	4.57	%	4.51	%	7.81	%

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until several days after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (6/16/00), the NAV of the Fund is used as a proxy for the secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

GROWTH OF $10,000 INVESTMENT

SINCE INCEPTION AT NET ASSET VALUE

LOGO


MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE		5

PORTFOLIO ALLOCATION

As of 4/30/05


*Industry*	% of Net Assets
Pharmaceuticals	42.73	%
Health Care - Products	30.07
Health Care - Services	14.39
Biotechnology	10.90
Insurance	0.78
Electronics	0.70
Commercial Services	0.18
Distribution & Wholesale	0.07
Agriculture	0.06
Internet	0.03
Short-Term and Other Net Assets	0.09

TOTAL	100.00	%

TOP TEN FUND HOLDINGS

As of 4/30/05


*Security*	% of Net Assets
Pfizer Inc.	12.61	%
Johnson & Johnson	12.55
Abbott Laboratories	4.72
Merck & Co. Inc.	4.63
Amgen Inc.	4.56
Medtronic Inc.	3.93
UnitedHealth Group Inc.	3.81
Wyeth	3.69
Lilly (Eli) & Co.	3.48
Bristol-Myers Squibb Co.	3.12

TOTAL	57.10	%

The iShares Dow Jones U.S. Healthcare Sector Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Dow Jones U.S. Healthcare Index (the “Index”). The Index measures the performance of the healthcare sector of the U.S. equity market and includes companies in the following sectors: healthcare providers, medical equipment and supplies, pharmaceuticals and biotechnology. The Fund invests in a representative sample of securities in the Index, which have a similar investment profile as the Index. For the one-year period ended April 30, 2005 (the “reporting period”), the Fund returned 3.18%, while the Index returned 3.82%.

Within the healthcare sector, performance was divided for the reporting period. In general, large pharmaceutical companies posted double-digit losses, due in part to FDA concerns about the potential side effects of several high profile drugs. Generic drug makers, biotechnology and medical technology companies, on the other hand, generally posted modest gains, appearing to benefit from renewed investor interest in growth-related stocks.

Among the Fund’s ten largest holdings as of April 30, 2005, performance was mixed for the reporting period. Healthcare company UnitedHealth Group Inc. posted the strongest gains. Johnson & Johnson also performed well for the reporting period. Generic drug companies Wyeth and Abbott Laboratories both gained. Pharmaceutical giants Merck & Co. Inc., Pfizer Inc. (the Fund’s largest holding as of April 30, 2005), and Eli Lilly & Co. all declined for the reporting period.


6		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance

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

Performance as of 4/30/05


Average Annual Total Returns											Cumulative Total Returns
*Year Ended 4/30/05*					*Inception to 4/30/05*						*Inception to 4/30/05*
*NAV*	*MARKET*		*INDEX*		*NAV*		*MARKET*		*INDEX*		*NAV*		*MARKET*		*INDEX*
(2.01)%	(2.52	)%	(1.44	)%	(17.98	)%	(18.01	)%	(17.49	)%	(62.60	)%	(62.66	)%	(61.45	)%

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

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

GROWTH OF $10,000 INVESTMENT

SINCE INCEPTION AT NET ASSET VALUE

LOGO


MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE		7


PORTFOLIO ALLOCATION As of 4/30/05
*Industry*	% of Net Assets
Computers	26.57	%
Software	23.02
Semiconductors	22.68
Telecommunications	18.21
Internet	6.79
Office & Business Equipment	1.46
Distribution & Wholesale	0.34
Electrical Components & Equipment	0.27
Machinery	0.27
Engineering & Construction	0.07
Commercial Services	0.06
Entertainment	0.06
Electronics	0.05
Retail	0.05
Chemicals	0.04
Pharmaceuticals	0.01
Short-Term and Other Net Assets	0.05

TOTAL	100.00	%

TOP TEN FUND HOLDINGS

As of 4/30/05


*Security*	% of Net Assets
Microsoft Corp.	14.62	%
Intel Corp.	8.88
International Business Machines Corp.	7.60
Cisco Systems Inc.	6.80
Dell Inc.	4.55
Hewlett-Packard Co.	3.56
QUALCOMM Inc.	3.43
Oracle Corp.	2.75
Texas Instruments Inc.	2.58
Yahoo! Inc.	2.38

TOTAL	57.15	%

The iShares Dow Jones U.S. Technology Sector Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Dow Jones U.S. Technology Index (the “Index”). The Index measures the performance of the technology sector of the U.S. equity market and includes companies in the following sectors: software, computer hardware and services, semiconductors, internet, and telecommunications equipment. The Fund invests in a representative sample of securities in the Index, which have a similar investment profile as the Index. For the one-year period ended April 30, 2005 (the “reporting period”), the Fund declined 2.01%, while the Index declined 1.44%.

Performance within the technology sector was divided for the reporting period. Many of the traditional chip makers and computer companies declined, suffering from low spending levels on computers and equipment by businesses. On the other hand, many internet-related companies, which do not rely on business spending for their revenues, delivered robust gains for the reporting period. Some experienced increases in their subscriber levels, which in turn led to higher advertising revenues.

Among the Fund’s ten largest holdings as of April 30, 2005, performance was divided for the reporting period. Internet services company Yahoo! Inc. led the way with the strongest gains. Wireless communications company QUALCOMM Inc. also contributed positively to the Fund’s performance for the reporting period. Cisco Systems Inc. logged the largest decline among the Fund’s ten largest holdings, followed by International Business Machines Corp. and Intel Corp. The Fund’s largest holding as of April 30, 2005, Microsoft Corp. also posted a decline for the reporting period.


8		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance

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

Performance as of 4/30/05


Average Annual Total Returns											Cumulative Total Returns
*Year Ended 4/30/05*					*Inception to 4/30/05*						*Inception to 4/30/05*
*NAV*	*MARKET*		*INDEX*		*NAV*		*MARKET*		*INDEX*		*NAV*		*MARKET*		*INDEX*
9.26%	9.00	%	6.82	%	(15.12	)%	(15.13	)%	(12.78	)%	(55.52	)%	(55.56	)%	(49.11	)%

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

GROWTH OF $10,000 INVESTMENT

SINCE INCEPTION AT NET ASSET VALUE

LOGO


MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE		9

PORTFOLIO ALLOCATION

As of 4/30/05


*Industry*	% of Net Assets
Telecommunications	98.56	%
Holding Companies - Diversified	1.20
Short-Term and Other Net Assets	0.24

TOTAL	100.00	%

TOP TEN FUND HOLDINGS

As of 4/30/05


*Security*	*% of* *Net* *Assets*
Verizon Communications Inc.	21.99	%
SBC Communications Inc.	18.26
BellSouth Corp.	6.51
Alltel Corp.	4.87
AT&T Corp.	4.73
Sprint Corp. (FON Group)	4.71
Nextel Communications Inc. Class A	4.69
BCE Inc.	4.40
Vodafone Group PLC ADR	3.91
Telephone & Data Systems Inc.	3.65

TOTAL	77.72	%

The iShares Dow Jones U.S. Telecommunications Sector Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Dow Jones U.S. Telecommunications Index (the “Index”). The Index measures the performance of the telecommunications sector of the U.S. equity market and includes companies in the following sectors: fixed-line telecommunications and mobile telecommunications. The Fund invests in a representative sample of the securities in the Index, which have a similar investment profile as the Index. For the one-year period ended April 30, 2005 (the “reporting period”), the Fund returned 9.26%, while the Index returned 6.82%.

The telecommunications sector generally benefited from the improving economic environment. Many wireless telecommunications companies that had suffered from overcapacity issues in the face of declining demand in recent years benefited from renewed demand during the reporting period. Increased interest in investment activity also may have helped the sector, as investors generally appeared more willing to return to more growth-oriented securities.

Among the Fund’s ten largest holdings as of April 30, 2005, performance for the reporting period was mostly positive. Wireless carrier Sprint Corp. (FON Group) logged healthy gains, as did BCE Inc. and Telephone & Data Systems Inc. Wireless services company Nextel Communications Inc.’s Class A shares and Alltel Corp. also contributed positively to the Fund’s performance for the reporting period. Verizon Communications Inc., the Fund’s largest holding, and SBC Communications Inc., the Fund’s second largest holding, were the only top ten Fund holdings to post losses for the reporting period.


10		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance

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

Performance as of 4/30/05


Average Annual Total Returns											Cumulative Total Returns
*Year Ended 4/30/05*					*Inception to 4/30/05*						*Inception to 4/30/05*
*NAV*	*MARKET*		*INDEX*		*NAV*		*MARKET*		*INDEX*		*NAV*		*MARKET*		*INDEX*
30.71%	30.71	%	31.53	%	4.18	%	4.18	%	4.75	%	22.15	%	22.15	%	25.39	%

GROWTH OF $10,000 INVESTMENT

SINCE INCEPTION AT NET ASSET VALUE

LOGO


MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE		11

PORTFOLIO ALLOCATION

As of 4/30/05


*Industry*	*% of* *Net Assets*
Electric	88.18	%
Gas	8.76
Pipelines	2.34
Water	0.57
Short-Term and Other Net Assets	0.15

TOTAL	100.00	%

TOP TEN FUND HOLDINGS

As of 4/30/05


*Security*	% of Net Assets
Exelon Corp.	7.37	%
Duke Energy Corp.	5.81
Dominion Resources Inc.	5.77
TXU Corp.	5.61
Southern Co. (The)	5.50
Entergy Corp.	3.74
FirstEnergy Corp.	3.23
American Electric Power Co. Inc.	3.13
FPL Group Inc.	3.12
Public Service Enterprise Group Inc.	3.11

TOTAL	46.39	%

The iShares Dow Jones U.S. Utilities Sector Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Dow Jones U.S. Utilities Index (the “Index”). The Index measures the performance of the utilities sector of the U.S. equity market and includes companies in the following sectors: electricity and gas, water and multi-utilities. The Fund invests in a representative sample of the securities in the Index, which have a similar investment profile as the Index. For the one-year period ended April 30, 2005 (the “reporting period”), the Fund returned 30.71%, while the Index returned 31.53%.

The utilities sector generally performed well for the reporting period, responding positively to the signs of economic recovery. As economic conditions improved, so did the demand for industrial production, which in turn caused higher demand for power. Some utilities companies benefited from higher oil and natural gas prices, which escalated during the reporting period.

All of the Fund’s ten largest holdings as of April 30, 2005 delivered double-digit gains or better for the reporting period. Power producer TXU Corp. was the top performer among the Fund’s ten largest holdings, posting triple-digit returns for the reporting period. Exelon Corp., the Fund’s largest holding as of April 30, 2005, also performed well, as did Duke Energy Corp., the Fund’s second largest holding. Public Service Enterprise Group Inc. and Entergy Corp. both contributed positively to the Fund’s performance. FirstEnergy Corp. was the weakest performer among the Fund’s ten largest holdings, posting a double-digit gain for the reporting period.


12		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance

iSHARES^® DOW JONES SELECT DIVIDEND INDEX FUND

Performance as of 4/30/05


Average Annual Total Returns											Cumulative Total Returns
*Year Ended 4/30/05*					*Inception to 4/30/05*						*Inception to 4/30/05*
*NAV*	*MARKET*		*INDEX*		*NAV*		*MARKET*		*INDEX*		*NAV*		*MARKET*		*INDEX*
14.81%	14.51	%	14.86	%	15.28	%	15.15	%	15.50	%	23.65	%	23.44	%	23.95	%

Total returns for the periods since inception are calculated from the inception date of the Fund (11/3/03). “Average annual total returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative total returns” represent the total change in value of an investment over the periods indicated.

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until several days after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (11/7/03), the NAV of the Fund is used as a proxy for the secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

GROWTH OF $10,000 INVESTMENT

SINCE INCEPTION AT NET ASSET VALUE

LOGO


MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE		13

PORTFOLIO ALLOCATION

As of 4/30/05


*Sector*	*% of* *Net Assets*
Financial	38.93	%
Utilities	21.07
Consumer Non-Cyclical	15.20
Basic Materials	7.32
Energy	6.15
Consumer Cyclical	4.74
Communications	3.61
Industrial	1.80
Technology	0.73
Short-Term and Other Net Assets	0.45

TOTAL	100.00	%

TOP TEN FUND HOLDINGS

As of 4/30/05


*Security*	*% of* *Net Assets*
Altria Group Inc.	4.11	%
FPL Group Inc.	2.86
Bank of America Corp.	2.84
DTE Energy Co.	2.75
PNC Financial Services Group	2.27
Pinnacle West Capital Corp.	2.15
Unitrin Inc.	2.13
Comerica Inc.	2.11
FirstEnergy Corp.	1.95
Bristol-Myers Squibb Co.	1.93

TOTAL	25.10	%

The iShares Dow Jones Select Dividend Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Dow Jones Select Dividend Index (the “Index”). The Index measures the performance of a selected group of equity securities issued by companies that have provided relatively high dividend yields on a consistent basis over time. The Index is comprised of one hundred of the highest dividend-yielding securities (excluding real estate investment trusts) in the Dow Jones U.S. Total Market Index (the “Total Market Index”), a broad-based index representative of the total market for U.S. equity securities. The Fund invests in a representative sample of securities in the Index, which have a similar profile as the Index. For the one-year period ended April 30, 2005 (the “reporting period”), the Fund returned 14.81%, while the Index returned 14.86%.

Although broad equity markets, as measured by the Total Market Index, experienced some volatility during the reporting period, they generally delivered gains. On the economic front, news was generally positive. Gross domestic product data showed signs of moderate economic growth for each of the four quarters in the reporting period, although growth levels tended to fall below many economists’ forecasts. Employment figures also strengthened during the course of the reporting period. Oil prices soared during the reporting period, topping $57 per barrel in early April, leading to concerns about inflation. The Federal Reserve Board raised short-term interest rates seven times during the reporting period, overall from 1.00% to 2.75%. In the final months of the reporting period, the concerns about high oil prices and the prospect of further increases in interest rates appeared to dampen investor enthusiasm, and markets generally retraced a portion of the gains made earlier in the reporting period.

Performance was mostly positive among the major sectors in the Index,. Energy-related stocks were the strongest performers, benefiting from the rise in oil prices during the reporting period. The improving economic environment helped the materials sector to deliver gains. Utilities performed well, largely due to the rise in oil and gas prices. Financials, by far the largest weighting in the Index, also contributed positively to Index performance. Consumer discretionary was the only sector among the ten major sectors to decline for the reporting period.

All of the Fund’s ten largest holdings as of April 30, 2005 posted gains for the reporting period. Utilities FPL Group Inc. and DTE Energy Co. were the two strongest performers, benefiting from rising energy prices during the reporting period. Tobacco company Altria Group Inc., the largest Fund holding as of April 30, 2005, also performed well. Financial companies Unitrin Inc., Bank of America Corp., and Comerica Inc. all contributed positively to Fund performance. Among the Fund’s ten largest holdings as of April 30, 2005, the weakest performer was financial company PNC Financial Services Group, which posted a slight gain for the reporting period.


14		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance

iSHARES^® DOW JONES TRANSPORTATION AVERAGE INDEX FUND

Performance as of 4/30/05


Average Annual Total Returns											Cumulative Total Returns
*Year Ended 4/30/05*					*Inception to 4/30/05*						*Inception to 4/30/05*
*NAV*	*MARKET*		*INDEX*		*NAV*		*MARKET*		*INDEX*		*NAV*		*MARKET*		*INDEX*
19.42%	19.20	%	20.03	%	14.93	%	14.91	%	15.15	%	24.42	%	24.38	%	24.61	%

Total returns for the periods since inception are calculated from the inception date of the Fund (10/6/03). “Average annual total returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative total returns” represent the total change in value of an investment over the periods indicated.

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until several days after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (10/10/03), the NAV of the Fund is used as a proxy for the secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

GROWTH OF $10,000 INVESTMENT

SINCE INCEPTION AT NET ASSET VALUE

LOGO


MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE		15

PORTFOLIO ALLOCATION

As of 4/30/05


*Industry*	*% of* *Net Assets*
Transportation	85.67	%
Airlines	9.76
Trucking & Leasing	4.50
Short-Term and Other Net Assets	0.07

TOTAL	100.00	%

TOP TEN FUND HOLDINGS

As of 4/30/05


*Security*	*% of* *Net Assets*
FedEx Corp.	11.29	%
United Parcel Service Inc. Class B	10.01
Union Pacific Corp.	7.74
Expeditors International Washington Inc.	7.14
Burlington Northern Santa Fe Corp.	5.55
CH Robinson Worldwide Inc.	5.35
Yellow Roadway Corp.	4.98
USF Corp.	4.97
CNF Inc.	4.92
CSX Corp.	4.90

TOTAL	66.85	%

The iShares Dow Jones Transportation Average Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Dow Jones Transportation Average Index (the “Index”). The Index measures the performance of the transportation sector of the U.S. equity market, and includes companies in the following primary groups: airlines, trucking, railroads, air freight, transportation services and industrial services. The Fund invests in a representative sample of the securities in the Index, which have a similar investment profile as the Index. For the one-year period ended April 30, 2005 (the “reporting period”), the Fund returned 19.42%, while the Index returned 20.03%.

Transportation-related companies generally performed well for the reporting period, benefiting largely from the improving economic environment. As the economic climate improved, overall business activity grew, which translated into more goods being sold, and led to increased demand for goods to be shipped. Within the sector, freight transportation shipping companies in particular performed well, benefiting from higher business activity levels.

Among the Fund’s ten largest holdings as of April 30, 2005, performance was positive for the reporting period. Railroad company Burlington Northern Santa Fe Corp. was the top performer among the Fund’s ten largest holdings. Yellow Roadway Corp. and rail transportation company CSX Corp. were also strong performers. CH Robinson Worldwide Inc., a freight transportation and logistics company, also performed well for the reporting period, as did USF Corp. United Parcel Service Inc. Class B, the second largest Fund holding as of April 30, 2005, was the weakest performer among the Fund’s top ten holdings, posting a slight gain for the reporting period.


16		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Shareholder Expenses

iSHARES^® TRUST

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from November 1, 2004 to April 30, 2005.

Actual Expenses

Hypothetical Example for Comparison Purposes


iShares Index Fund	Beginning Account Value (November 1, 2004)		Ending Account Value (April 30, 2005)		Annualized Expense Ratio		Expenses Paid During Period* (November 1, 2004 to April 30, 2005)
Dow Jones U.S. Total Market
Actual	$	1,000.00	$	1,037.40	0.20	%	$	1.01
Hypothetical (5% return before expenses)		1,000.00		1,023.80	0.20			1.00
Dow Jones U.S. Energy Sector
Actual		1,000.00		1,140.10	0.60			3.18
Hypothetical (5% return before expenses)		1,000.00		1,021.82	0.60			3.01
Dow Jones U.S. Healthcare Sector
Actual		1,000.00		1,110.20	0.60			3.14
Hypothetical (5% return before expenses)		1,000.00		1,021.82	0.60			3.01
Dow Jones U.S. Technology Sector
Actual		1,000.00		958.80	0.60			2.91
Hypothetical (5% return before expenses)		1,000.00		1,021.82	0.60			3.01


SHAREHOLDER EXPENSES		17

Shareholder Expenses (Continued)

iSHARES^® TRUST


iShares Index Fund	Beginning Account Value (November 1, 2004)		Ending Account Value (April 30, 2005)		Annualized Expense Ratio		Expenses Paid During Period* (November 1, 2004 to April 30, 2005)
Dow Jones U.S. Telecommunications Sector
Actual	$	1,000.00	$	1,016.00	0.60	%	$	3.00
Hypothetical (5% return before expenses)		1,000.00		1,021.82	0.60			3.01
Dow Jones U.S. Utilities Sector
Actual		1,000.00		1,147.50	0.60			3.19
Hypothetical (5% return before expenses)		1,000.00		1,021.82	0.60			3.01
Dow Jones Select Dividend
Actual		1,000.00		1,039.00	0.40			2.02
Hypothetical (5% return before expenses)		1,000.00		1,022.81	0.40			2.01
Dow Jones Transportation Average
Actual		1,000.00		980.70	0.60			2.95
Hypothetical (5% return before expenses)		1,000.00		1,021.82	0.60			3.01

*	Expenses are calculated using each Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days), and divided by the number of days in the year (365 days).


18		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

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

April 30, 2005


*Security*	*Shares*	*Value*
COMMON STOCKS – 99.89%

ADVERTISING – 0.27%
ADVO Inc.	1,091	$	31,432
Catalina Marketing Corp.	1,793		41,687
Donnelley (R.H.) Corp.¹	1,050		59,797
Getty Images Inc.¹	1,528		109,328
Harte-Hanks Inc.	1,833		52,240
Interpublic Group of Companies Inc.¹	14,478		186,187
Lamar Advertising Co.¹	2,812		105,113
Omnicom Group Inc.²	6,293		521,690
ValueVision Media Inc. Class A^1,2	1,030		10,197

			1,117,671

AEROSPACE & DEFENSE – 1.63%
AAR Corp.^1,2	1,047		15,422
Alliant Techsystems Inc.¹	1,272		87,997
Armor Holdings Inc.¹	938		32,839
Boeing Co. (The)	24,916		1,483,000
Curtiss-Wright Corp. Class B	287		15,561
Engineered Support Systems Inc.	1,327		46,870
Esterline Technologies Corp.¹	752		24,305
General Dynamics Corp.	5,656		594,163
Goodrich (B.F.) Co.	4,026		162,248
Kaman Corp. Class A	760		9,789
L-3 Communications Holdings Inc.	3,833		272,028
Lockheed Martin Corp.	11,913		726,097
Northrop Grumman Corp.	12,100		663,564
Raytheon Co.	15,222		572,499
Rockwell Collins Inc.	5,509		252,753
Titan Corp. (The)¹	2,772		49,757
United Defense Industries Inc.	1,635		120,957
United Technologies Corp.	15,870		1,614,296

			6,744,145

AGRICULTURE – 1.41%
Altria Group Inc.	68,949		4,480,996
Bunge Ltd.	3,758		213,454
Delta & Pine Land Co.	1,196		30,139
Loews Corp. - Carolina Group	1,977		62,275
Monsanto Co.	9,004		527,814
Reynolds American Inc.²	2,908		226,737
Universal Corp.	883		40,309
UST Inc.	5,552		254,282

			5,836,006

AIRLINES – 0.15%
AirTran Holdings Inc.^1,2	3,037		25,207
Alaska Air Group Inc.¹	898		23,950
AMR Corp.^1,2	5,261		55,083
Continental Airlines Inc. Class B^1,2	2,094		24,793
Delta Air Lines Inc.^1,2	3,748		12,331
JetBlue Airways Corp.^1,2	3,082		61,794
Northwest Airlines Corp.^1,2	2,397		12,416
SkyWest Inc.	2,070		37,426
Southwest Airlines Co.	23,711		352,820

			605,820

APPAREL – 0.39%
Coach Inc.¹	12,690		340,092
Jones Apparel Group Inc.	4,295		130,783
Kellwood Co.	873		22,296
Liz Claiborne Inc.	3,607		127,796
Nike Inc. Class B	5,821		447,111
Phillips-Van Heusen Corp.	886		22,930
Polo Ralph Lauren Corp.	1,837		64,479
Quiksilver Inc.¹	2,056		56,643
Reebok International Ltd.	1,656		67,250
Russell Corp.²	884		15,479
Stride Rite Corp.	1,515		18,483
Timberland Co. Class A¹	716		49,440
Tommy Hilfiger Corp.¹	2,860		31,288
Unifi Inc.¹	1,961		6,020
VF Corp.	2,874		162,640
Wolverine World Wide Inc.	1,990		40,377

			1,603,107

AUTO MANUFACTURERS – 0.36%
Ford Motor Co.	58,765		535,349
General Motors Corp.²	15,539		414,581
Navistar International Corp.¹	2,119		62,574
Oshkosh Truck Corp.	1,098		82,515
PACCAR Inc.	5,848		397,079
Wabash National Corp.²	901		22,975

			1,515,073

AUTO PARTS & EQUIPMENT – 0.21%
American Axle & Manufacturing Holdings Inc.	1,406		28,064
ArvinMeritor Inc.²	2,268		26,944


SCHEDULES OF INVESTMENTS		19

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	*Shares*	*Value*
BorgWarner Inc.	1,810	$	82,753
Cooper Tire & Rubber Co.	2,559		44,655
Dana Corp.	5,102		58,265
Delphi Corp.	16,608		54,806
Goodyear Tire & Rubber Co. (The)^1,2	5,693		67,576
Johnson Controls Inc.²	6,429		352,759
Lear Corp.	2,326		78,828
Modine Manufacturing Co.	1,031		27,919
Superior Industries International Inc.²	738		15,004
Visteon Corp.	4,509		15,781

			853,354

BANKS – 6.45%
AMCORE Financial Inc.	902		23,236
AmSouth Bancorp	11,951		314,550
Associated Bancorp	4,172		128,998
Assurant Inc.	4,036		133,551
BancorpSouth Inc.²	2,505		53,031
Bank of America Corp.	135,860		6,119,134
Bank of Hawaii Corp.	1,774		83,999
Bank of New York Co. Inc. (The)	26,113		729,597
BB&T Corp.²	18,643		730,992
Cathay General Bancorp	1,415		46,511
Chittenden Corp.²	1,470		36,912
Citizens Banking Corp.	1,359		36,435
City National Corp.	1,523		107,371
Colonial BancGroup Inc. (The)	4,541		100,174
Comerica Inc.	5,719		327,470
Commerce Bancorp Inc.²	5,366		150,194
Commerce Bancshares Inc.	2,321		111,849
Compass Bancshares Inc.	4,173		179,522
Cullen/Frost Bankers Inc.	1,777		76,980
East West Bancorp Inc.	1,748		56,146
Fifth Third Bancorp	16,810		731,235
First BanCorp (Puerto Rico)	1,247		45,216
First Horizon National Corp.	4,109		170,647
First Marblehead Corp. (The)^1,2	1,144		44,078
First Midwest Bancorp Inc.	1,652		53,954
FirstMerit Corp.²	2,568		62,993
FNB Corp. (Pennsylvania)²	1,606		30,434
Fremont General Corp.	2,242		48,629
Fulton Financial Corp.	4,285		89,342
Genworth Financial Inc. Class A	7,568		211,526
Greater Bay Bancorp	1,738		43,728
Hibernia Corp. Class A	5,292		165,269
Hudson United Bancorp	1,507		51,630
Huntington Bancshares Inc.	7,389		173,715
Investors Financial Services Corp.	2,137		89,647
KeyCorp	13,800		457,608
M&T Bank Corp.	2,820		291,729
Marshall & Ilsley Corp.	6,458		275,369
Mellon Financial Corp.	14,348		397,296
Mercantile Bankshares Corp.	2,569		130,531
National City Corp.	19,067		647,515
North Fork Bancorp Inc.	14,763		415,578
Northern Trust Corp.	6,558		295,307
Old National Bancorp	2,358		45,014
Pacific Capital Bancorp	1,582		45,609
Park National Corp.²	386		38,793
PNC Financial Services Group	9,569		509,358
Popular Inc.	8,228		190,396
Provident Bankshares Corp.	1,225		35,868
Regions Financial Corp.²	15,545		520,602
Republic Bancorp Inc.²	2,103		26,666
Silicon Valley Bancshares^1,2	1,228		58,207
Sky Financial Group Inc.²	3,581		93,464
South Financial Group Inc. (The)	2,332		61,541
Southwest Bancorp of Texas Inc.	2,098		34,827
State Street Corp.²	11,313		523,000
Sterling Bancshares Inc.²	1,512		20,306
SunTrust Banks Inc.	12,045		877,237
Susquehanna Bancshares Inc.	1,664		34,994
Synovus Financial Corp.	8,610		241,338
TCF Financial Corp.²	4,516		114,210
TD Banknorth Inc.¹	3,048		93,878
Texas Regional Bancshares Inc. Class A	1,526		42,530
TrustCo Bank Corp. NY²	2,357		25,951
Trustmark Corp.	1,789		49,233
U.S. Bancorp	62,910		1,755,189
UCBH Holdings Inc.	2,928		46,057
UnionBanCal Corp.	1,883		115,917
United Bancshares Inc.	1,348		41,276


20		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	*Shares*	*Value*
Valley National Bancorp²	3,464	$	85,873
W Holding Co. Inc.	4,287		34,682
Wachovia Corp.²	53,373		2,731,630
Wells Fargo & Co.	56,848		3,407,469
Westamerica Bancorp²	1,084		54,135
Whitney Holding Corp.	1,342		60,752
Wilmington Trust Corp.	2,270		80,244
Zions Bancorporation	3,044		213,171

			26,779,045

BEVERAGES – 2.03%
Anheuser-Busch Companies Inc.	27,012		1,266,052
Brown-Forman Corp. Class B	1,328		73,704
Coca-Cola Co. (The)	74,758		3,247,488
Coca-Cola Enterprises Inc.	8,383		170,175
Constellation Brands Inc.¹	3,245		171,044
Molson Coors Brewing Co. Class B	2,311		142,704
Pepsi Bottling Group Inc.	5,329		152,782
PepsiAmericas Inc.	2,161		53,355
PepsiCo Inc.	56,608		3,149,669

			8,426,973

BIOTECHNOLOGY – 1.45%
Affymetrix Inc.^1,2	1,935		89,223
Alexion Pharmaceuticals Inc.¹	883		18,313
Amgen Inc.^1,2	42,694		2,485,218
Applera Corp. - Celera Genomics Group^1,2	2,387		21,960
Biogen Idec Inc.¹	11,297		409,403
Bio-Rad Laboratories Inc. Class A¹	489		23,638
Cambrex Corp.²	891		16,929
Celgene Corp.¹	5,566		211,007
Cell Genesys Inc.^1,2	1,203		5,606
Charles River Laboratories International Inc.¹	1,954		92,561
Chiron Corp.¹	3,761		128,438
CuraGen Corp.^1,2	1,348		4,179
Enzo Biochem Inc.^1,2	829		11,291
Enzon Pharmaceuticals Inc.¹	1,491		11,555
Genentech Inc.¹	15,689		1,112,978
Genzyme Corp.¹	7,653		448,542
Human Genome Sciences Inc.^1,2	4,365		45,134
ICOS Corp.^1,2	1,956		44,127
Immunomedics Inc.^1,2	1,361		2,940
Incyte Corp.^1,2	3,186		20,836
InterMune Inc.^1,2	1,046		11,297
Invitrogen Corp.¹	1,774		129,981
Lexicon Genetics Inc.¹	1,915		8,388
Martek Biosciences Corp.^1,2	1,052		40,260
Maxygen Inc.¹	1,039		7,803
MedImmune Inc.¹	8,378		212,550
Millennium Pharmaceuticals Inc.¹	10,202		89,370
Millipore Corp.¹	1,647		79,418
Myriad Genetics Inc.^1,2	1,003		16,208
Nektar Therapeutics¹	2,965		42,281
Protein Design Labs Inc.¹	3,293		58,879
Regeneron Pharmaceuticals Inc.^1,2	1,179		6,555
Savient Pharmaceuticals Inc.^1,2	1,940		5,354
Telik Inc.^1,2	1,920		31,104
Transkaryotic Therapies Inc.^1,2	816		27,646
Vertex Pharmaceuticals Inc.^1,2	2,552		24,346
XOMA Ltd.^1,2	2,409		2,891

			5,998,209

BUILDING MATERIALS – 0.32%
American Standard Companies Inc.	6,017		269,020
Eagle Materials Inc.²	316		23,779
Eagle Materials Inc. Class B	313		22,924
ElkCorp	601		16,527
Florida Rock Industries Inc.	1,257		73,007
Lafarge North America Inc.	1,042		57,841
Martin Marietta Materials Inc.	1,651		90,788
Masco Corp.	14,956		470,964
Simpson Manufacturing Co. Inc.	1,117		30,159
Texas Industries Inc.	745		34,404
USG Corp.^1,2	1,070		44,929
Vulcan Materials Co.	2,820		149,573
York International Corp.²	1,341		52,473

			1,336,388

CHEMICALS – 1.64%
Air Products & Chemicals Inc.	7,157		420,331
Airgas Inc.	2,249		49,298
Albemarle Corp.	1,200		43,932
Ashland Inc.	2,297		154,450
Cabot Corp.	2,078		63,483
Cabot Microelectronics Corp.^1,2	894		25,738


SCHEDULES OF INVESTMENTS		21

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	*Shares*	*Value*
Crompton Corp.	4,041	$	56,776
Cytec Industries Inc.	1,185		54,652
Dow Chemical Co. (The)	31,977		1,468,704
Du Pont (E.I.) de Nemours and Co.²	33,471		1,576,819
Eastman Chemical Co.	2,566		138,564
Ecolab Inc.	6,291		205,779
Engelhard Corp.	4,217		129,167
Ferro Corp.	1,472		26,673
FMC Corp.¹	1,169		57,281
Fuller (H.B.) Co.	916		27,773
Georgia Gulf Corp.	1,184		43,701
Great Lakes Chemical Corp.	1,728		53,637
Hercules Inc.¹	3,451		45,657
International Flavors & Fragrances Inc.	2,934		111,199
Lubrizol Corp.	2,096		81,262
Lyondell Chemical Co.	6,882		172,669
MacDermid Inc.	875		26,556
Minerals Technologies Inc.	725		47,357
Mosaic Co. (The)^1,2	4,223		54,266
Olin Corp.	2,358		41,831
OM Group Inc.¹	911		19,987
PPG Industries Inc.	5,774		390,034
Praxair Inc.²	10,926		511,665
Rohm & Haas Co.	4,899		213,890
RPM International Inc.²	3,912		67,482
Schulman (A.) Inc.	1,077		17,986
Sensient Technologies Corp.	1,500		30,015
Sherwin-Williams Co. (The)	4,054		180,687
Sigma-Aldrich Corp.	1,939		113,296
Valspar Corp. (The)	1,646		68,029
Wellman Inc.	1,194		12,847

			6,803,473

COAL – 0.12%
Arch Coal Inc.	2,073		91,917
CONSOL Energy Inc.	3,048		131,796
Massey Energy Co.²	2,553		92,189
Peabody Energy Corp.	4,276		187,161

			503,063

COMMERCIAL SERVICES – 1.36%
Accenture Ltd.¹	15,079		327,214
ADESA Inc.	2,990		72,328
Albany Molecular Research Inc.¹	749		7,067
Alliance Data Systems Corp.¹	1,515		61,206
Apollo Group Inc. Class A¹	5,099		367,740
ARAMARK Corp. Class B	3,743		91,741
Arbitron Inc.	1,045		44,224
Banta Corp.	894		37,226
BearingPoint Inc.¹	5,207		32,231
Block (H & R) Inc.	5,242		261,104
Bowne & Co. Inc.	1,207		15,715
Career Education Corp.¹	3,325		104,538
Cendant Corp.	35,192		700,673
Chemed Corp.	418		29,611
ChoicePoint Inc.¹	2,973		117,344
Convergys Corp.¹	4,817		62,428
Corinthian Colleges Inc.^1,2	3,030		43,056
Corporate Executive Board Co. (The)	1,325		87,092
Corrections Corp. of America¹	1,089		41,219
Deluxe Corp.²	1,772		70,756
DeVry Inc.^1,2	2,087		47,584
Donnelley (R.R.) & Sons Co.	7,233		238,038
Education Management Corp.¹	2,050		57,400
Equifax Inc.	4,576		153,982
Forrester Research Inc.^1,2	581		8,680
FTI Consulting Inc.^1,2	1,483		32,745
Hewitt Associates Inc. Class A^1,2	1,433		38,132
Hudson Highland Group Inc.^1,2	556		7,667
Interactive Data Corp.^1,2	1,202		24,100
Iron Mountain Inc.^1,2	3,787		112,474
ITT Educational Services Inc.^1,2	1,495		68,740
Laureate Education Inc.¹	1,479		65,697
Manpower Inc.	3,046		117,423
McKesson Corp.	9,215		340,955
MoneyGram International Inc.	3,137		60,858
Moody’s Corp.	4,228		347,288
MPS Group Inc.¹	3,461		27,653
Navigant Consulting Inc.^1,2	1,418		33,280
NCO Group Inc.^1,2	1,149		21,406
PAREXEL International Corp.¹	906		16,516
Paychex Inc.²	11,300		345,780
Pharmaceutical Product Development Inc.¹	1,658		75,240


22		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	*Shares*	*Value*
PHH Corp.¹	1,712	$	38,263
Pre-Paid Legal Services Inc.²	478		17,069
PRG-Schultz International Inc.^1,2	2,104		10,036
Quanta Services Inc.^1,2	3,225		25,735
Rent-A-Center Inc.¹	2,288		55,004
Resources Connection Inc.^1,2	1,412		26,983
Robert Half International Inc.	5,681		141,002
Service Corp. International²	11,690		82,298
ServiceMaster Co. (The)²	10,031		128,698
Sotheby’s Holdings Inc. Class A¹	1,499		24,554
Spherion Corp.¹	1,940		10,883
Stewart Enterprises Inc. Class A	3,155		17,037
Strayer Education Inc.²	457		49,027
TeleTech Holdings Inc.^1,2	1,217		12,778
United Rentals Inc.^1,2	2,400		44,136
Valassis Communications Inc.¹	1,657		58,409
Viad Corp.	783		20,162
Weight Watchers International Inc.^1,2	1,500		62,625

			5,640,850

COMPUTERS – 3.69%
Advanced Digital Information Corp.¹	2,115		14,615
Affiliated Computer Services Inc. Class A^1,2	4,114		196,114
Agilysys Inc.	1,185		15,666
Apple Computer Inc.¹	27,372		987,034
BISYS Group Inc. (The)¹	4,061		57,341
Brocade Communications Systems Inc.¹	8,865		38,651
CACI International Inc. Class A¹	987		61,312
Cadence Design Systems Inc.¹	9,173		128,422
Ceridian Corp.¹	5,210		87,893
CIBER Inc.^1,2	1,936		15,062
Cognizant Technology Solutions Corp.¹	4,452		187,029
Computer Sciences Corp.¹	6,340		275,663
Dell Inc.¹	73,574		2,562,582
Diebold Inc.	2,414		116,765
DST Systems Inc.¹	2,167		98,382
Echelon Corp.¹	1,204		7,573
Electronic Data Systems Corp.	17,029		329,511
Electronics For Imaging Inc.^1,2	1,801		29,572
EMC Corp.¹	81,365		1,067,509
FactSet Research Systems Inc.²	1,234		34,256
Gateway Inc.¹	7,901		26,942
Henry (Jack) & Associates Inc.	2,539		43,645
Hewlett-Packard Co.	97,552		1,996,889
Hutchinson Technology Inc.^1,2	896		33,188
Imation Corp.	1,220		42,541
InFocus Corp.¹	1,348		4,853
Intergraph Corp.¹	1,232		36,430
International Business Machines Corp.	55,914		4,270,711
Iomega Corp.¹	1,639		4,786
Kronos Inc.^1,2	1,091		42,604
Lexar Media Inc.¹	2,304		10,437
Lexmark International Inc.¹	4,387		304,677
Maxtor Corp.¹	8,581		41,618
McDATA Corp. Class A¹	2,853		8,787
Mentor Graphics Corp.¹	2,591		23,164
Mercury Computer Systems Inc.^1,2	743		19,563
MICROS Systems Inc.¹	1,218		48,294
M-Systems Flash Disk Pioneers Ltd.¹	1,034		19,594
National Instruments Corp.²	1,741		37,501
NCR Corp.¹	6,202		204,666
Network Appliance Inc.¹	12,069		321,397
PalmOne Inc.^1,2	1,334		28,588
Perot Systems Corp. Class A¹	2,391		30,198
Quantum Corp.¹	5,544		13,306
RadiSys Corp.^1,2	586		8,204
Reynolds & Reynolds Co. (The) Class A	2,215		58,410
SanDisk Corp.¹	5,408		128,170
Seagate Technology	7,072		124,326
Silicon Graphics Inc.^1,²	6,164		4,808
Silicon Storage Technology Inc.^1,2	2,847		7,459
Storage Technology Corp.¹	3,748		104,194
Sun Microsystems Inc.¹	110,856		402,407
SunGard Data Systems Inc.¹	9,749		325,617
Synopsys Inc.¹	4,909		80,704
Unisys Corp.¹	11,086		71,948
Western Digital Corp.¹	6,856		87,003

			15,328,581


SCHEDULES OF INVESTMENTS		23

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	*Shares*	*Value*
COSMETICS & PERSONAL CARE – 2.17%
Alberto-Culver Co.	2,699	$	120,105
Avon Products Inc.	15,957		639,557
Colgate-Palmolive Co.	17,931		892,784
Estee Lauder Companies Inc. Class A	4,415		169,580
Gillette Co. (The)	30,651		1,582,818
Kimberly-Clark Corp.	16,386		1,023,306
Procter & Gamble Co.	84,737		4,588,509

			9,016,659

DISTRIBUTION & WHOLESALE – 0.24%
CDW Corp.	2,159		118,076
Fastenal Co.²	2,270		121,581
Genuine Parts Co.	5,964		255,856
Grainger (W.W.) Inc.	2,742		151,605
Hughes Supply Inc.	2,170		56,637
Ingram Micro Inc. Class A¹	4,306		71,738
Owens & Minor Inc.	1,197		34,725
SCP Pool Corp.²	1,761		57,373
Tech Data Corp.¹	1,931		70,539
United Stationers Inc.¹	1,194		50,363

			988,493

DIVERSIFIED FINANCIAL SERVICES – 7.09%
Affiliated Managers Group Inc.^1,2	941		58,841
American Express Co.	37,473		1,974,827
AmeriCredit Corp.¹	5,122		119,855
Ameritrade Holding Corp.¹	9,630		100,922
Bear Stearns Companies Inc. (The)²	3,507		331,973
Capital One Financial Corp.	8,164		578,746
CapitalSource Inc.^1,2	2,277		47,817
Chicago Mercantile Exchange Holdings Inc.	918		179,487
CIT Group Inc.	7,106		286,230
Citigroup Inc.	174,530		8,195,929
Countrywide Financial Corp.	19,049		689,383
Doral Financial Corp.	3,123		43,878
E*TRADE Financial Corp.¹	12,451		138,331
Eaton Vance Corp.	4,305		100,866
Edwards (A.G.) Inc.²	2,715		107,813
Federal Home Loan Mortgage Corp.	23,212		1,428,002
Federal National Mortgage Association	32,612		1,759,417
Federated Investors Inc. Class B	3,192		90,812
Franklin Resources Inc.	4,719		324,101
Friedman, Billings, Ramsey Group Inc. Class A²	4,898		59,217
Goldman Sachs Group Inc. (The)	13,856		1,479,682
IndyMac Bancorp Inc.	1,989		76,537
Investment Technology Group Inc.¹	1,387		26,367
Janus Capital Group Inc.	7,941		103,154
Jefferies Group Inc.	1,678		60,744
JP Morgan Chase & Co.	119,675		4,247,266
Knight Trading Group Inc.¹	3,639		30,677
LaBranche & Co. Inc.¹	1,789		11,897
Legg Mason Inc.	3,489		247,231
Lehman Brothers Holdings Inc.	9,241		847,585
MBNA Corp.	37,976		750,026
Merrill Lynch & Co. Inc.	28,772		1,551,674
Morgan Stanley	33,417		1,758,403
Piper Jaffray Companies Inc.¹	648		17,917
Providian Financial Corp.¹	10,041		167,383
Raymond James Financial Inc.	2,039		54,992
Schwab (Charles) Corp. (The)	37,642		389,595
SLM Corp.	14,430		687,445
SWS Group Inc.	603		8,804
T. Rowe Price Group Inc.	4,288		236,569
W.P. Stewart & Co. Ltd.²	910		20,093
Waddell & Reed Financial Inc. Class A²	2,687		46,781

			29,437,269

ELECTRIC – 3.22%
AES Corp. (The)¹	21,781		350,238
Allegheny Energy Inc.^1,2	4,594		112,277
ALLETE Inc.	897		37,378
Alliant Energy Corp.	3,831		100,909
Ameren Corp.²	6,490		335,533
American Electric Power Co. Inc.²	13,310		468,778
Aquila Inc.¹	7,924		27,259
Avista Corp.	1,659		27,855
Black Hills Corp.²	1,046		35,857
Calpine Corp.^1,2	14,106		25,250
CenterPoint Energy Inc.	9,306		110,183
Cinergy Corp.	5,822		230,551
Cleco Corp.	1,638		33,448


24		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	*Shares*	*Value*
CMS Energy Corp.¹	7,294	$	94,238
Consolidated Edison Inc.²	8,065		349,053
Constellation Energy Group Inc.	5,975		314,046
Dominion Resources Inc.	11,432		861,973
DPL Inc.	3,920		99,725
DTE Energy Co.	5,878		270,094
Duke Energy Corp.	29,799		869,833
Duquesne Light Holdings Inc.²	2,685		47,229
Edison International	10,062		365,251
El Paso Electric Co.¹	1,801		35,138
Energy East Corp.	4,964		129,163
Entergy Corp.	7,608		557,666
Exelon Corp.	22,239		1,100,830
FirstEnergy Corp.	11,087		482,506
FPL Group Inc.²	11,406		465,593
Great Plains Energy Inc.²	2,351		71,894
Hawaiian Electric Industries Inc.²	2,846		72,004
IDACORP Inc.²	1,346		36,315
MDU Resources Group Inc.²	3,686		99,633
NiSource Inc.	8,989		208,904
Northeast Utilities	4,470		81,846
NRG Energy Inc.^1,2	2,818		87,640
NSTAR	1,801		97,506
OGE Energy Corp.²	2,972		82,027
Pepco Holdings Inc.	6,068		131,494
PG&E Corp.	13,414		465,734
Pinnacle West Capital Corp.	3,151		132,027
PNM Resources Inc.	1,836		50,765
PPL Corp.²	6,311		342,435
Progress Energy Inc.	8,322		349,441
Public Service Enterprise Group Inc.²	7,953		462,069
Puget Energy Inc.	3,518		75,426
Reliant Energy Inc.¹	9,870		100,378
SCANA Corp.	3,460		134,386
Sierra Pacific Resources Corp.^1,2	3,582		38,757
Southern Co. (The)²	24,868		819,401
TECO Energy Inc.²	6,605		109,709
TXU Corp.	9,790		839,884
UniSource Energy Corp.	1,192		37,250
Westar Energy Inc.	3,022		69,204
Wisconsin Energy Corp.	4,050		142,803
WPS Resources Corp.²	1,181		62,274
Xcel Energy Inc.²	13,492		231,793

			13,370,853

ELECTRICAL COMPONENTS & EQUIPMENT – 0.38%
American Power Conversion Corp.	6,304		152,935
AMETEK Inc.	2,384		90,282
Artesyn Technologies Inc.¹	1,355		9,553
Belden CDT Inc.²	1,530		28,060
C&D Technologies Inc.	908		6,383
Emerson Electric Co.	14,180		888,661
Energizer Holdings Inc.¹	2,377		135,418
General Cable Corp.¹	1,057		12,843
GrafTech International Ltd.¹	3,311		12,615
Hubbell Inc. Class B	1,660		72,127
Littelfuse Inc.¹	744		20,043
Molex Inc.²	1,928		48,990
Molex Inc. Class A²	2,463		56,378
Power-One Inc.¹	2,401		10,036
Rayovac Corp.¹	1,087		39,610

			1,583,934

ELECTRONICS – 0.75%
Agilent Technologies Inc.¹	15,028		311,831
Amphenol Corp. Class A	2,843		112,128
Applera Corp. - Applied Biosystems Group	6,756		143,227
Arrow Electronics Inc.¹	3,861		93,977
Avnet Inc.¹	4,178		78,922
AVX Corp.²	1,947		21,203
Benchmark Electronics Inc.¹	1,333		36,044
Checkpoint Systems Inc.¹	1,189		18,822
Coherent Inc.^1,2	1,044		33,492
CTS Corp.	1,045		11,025
Cymer Inc.¹	1,201		29,773
Dionex Corp.¹	758		32,556
Electro Scientific Industries Inc.^1,2	910		15,042
Fisher Scientific International Inc.¹	3,887		230,810
Flextronics International Ltd.¹	18,799		209,609
FLIR Systems Inc.^1,2	2,298		61,127
Garmin Ltd.²	1,949		76,985
Gentex Corp.²	2,551		82,805
Jabil Circuit Inc.¹	5,554		153,290


SCHEDULES OF INVESTMENTS		25

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	*Shares*	*Value*
KEMET Corp.¹	3,008	$	18,800
Methode Electronics Inc.	1,221		13,761
Mettler Toledo International Inc.¹	1,440		66,024
Molecular Devices Corp.¹	598		11,302
Orbotech Ltd.¹	1,055		21,448
Park Electrochemical Corp.	601		13,312
Parker Hannifin Corp.	4,047		242,577
PerkinElmer Inc.	4,196		77,626
Photon Dynamics Inc.^1,2	600		11,610
Plexus Corp.^1,2	1,489		18,032
Sanmina-SCI Corp.¹	16,977		68,078
Solectron Corp.¹	31,574		104,194
Symbol Technologies Inc.	8,040		107,495
Taser International Inc.^1,2	1,772		15,310
Technitrol Inc.	1,201		15,589
Tektronix Inc.	3,035		65,738
Thermo Electron Corp.¹	5,379		134,367
Thomas & Betts Corp.¹	1,951		60,715
Trimble Navigation Ltd.¹	1,624		55,898
Varian Inc.¹	1,197		39,704
Vishay Intertechnology Inc.¹	4,958		53,001
Waters Corp.¹	4,067		161,175

			3,128,424

ENERGY - ALTERNATE SOURCES – 0.00%
FuelCell Energy Inc.^1,2	1,196		9,568

			9,568

ENGINEERING & CONSTRUCTION – 0.10%
Dycom Industries Inc.¹	1,654		38,472
EMCOR Group Inc.^1,2	581		25,959
Fluor Corp.²	2,836		146,224
Granite Construction Inc.	1,210		27,322
Insituform Technologies Inc. Class A^1,2	899		13,404
Jacobs Engineering Group Inc.¹	1,885		91,818
McDermott International Inc.¹	2,106		42,773
Shaw Group Inc. (The)^1,2	2,789		50,397

			436,369

ENTERTAINMENT – 0.19%
Alliance Gaming Corp.^1,2	1,446		16,484
Argosy Gaming Co.¹	845		38,819
DreamWorks Animation SKG Inc. Class A¹	864		32,400
Gaylord Entertainment Co.¹	1,227		49,080
GTECH Holdings Corp.	3,872		94,748
International Game Technology Inc.	11,850		318,646
International Speedway Corp. Class A	887		47,188
Macrovision Corp.¹	1,827		37,362
Penn National Gaming Inc.¹	2,109		66,433
Pinnacle Entertainment Inc.¹	1,164		17,646
Scientific Games Corp. Class A¹	2,095		44,980
Six Flags Inc.¹	3,292		12,839

			776,625

ENVIRONMENTAL CONTROL – 0.23%
Allied Waste Industries Inc.^1,2	6,828		54,556
Casella Waste Systems Inc. Class A¹	769		9,067
Mine Safety Appliances Co.²	821		29,310
Republic Services Inc.	4,522		156,461
Stericycle Inc.¹	1,504		73,200
Tetra Tech Inc.¹	1,983		21,000
Waste Connections Inc.^1,2	1,681		59,205
Waste Management Inc.	19,497		555,470

			958,269

FOOD – 1.72%
Albertson’s Inc.²	10,824		214,207
American Italian Pasta Co. Class A²	607		14,362
Archer-Daniels-Midland Co.	20,063		360,933
Campbell Soup Co.	8,639		256,924
Chiquita Brands International Inc.²	1,357		33,993
ConAgra Foods Inc.	17,768		475,294
Corn Products International Inc.	2,380		52,408
Dean Foods Co.¹	5,010		172,144
Del Monte Foods Co.¹	7,012		73,135
Dreyer’s Grand Ice Cream Holdings Inc.	951		76,945
Flowers Foods Inc.	1,343		38,732
General Mills Inc.	11,934		589,540
Hain Celestial Group Inc.^1,2	1,034		18,353
Heinz (H.J.) Co.	11,848		436,599
Hershey Co. (The)	5,782		369,470
Hormel Foods Corp.	2,561		79,750
Kellogg Co.	7,959		357,757
Kraft Foods Inc.²	8,790		284,884
Kroger Co.¹	22,879		360,802
McCormick & Co. Inc. NVS	3,798		131,373


26		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	*Shares*	*Value*
Performance Food Group Co.^1,2	1,518	$	40,819
Ralcorp Holdings Inc.	1,048		41,522
Safeway Inc.¹	15,101		321,500
Sara Lee Corp.²	26,595		568,867
Smithfield Foods Inc.¹	3,030		91,688
Smucker (J.M.) Co. (The)²	1,937		96,114
SUPERVALU Inc.	4,649		146,722
Sysco Corp.²	21,508		744,177
Tootsie Roll Industries Inc.	808		24,951
Tyson Foods Inc. Class A	8,109		136,961
Whole Foods Market Inc.	2,089		208,315
Wild Oats Markets Inc.¹	756		7,636
Wrigley (William Jr.) Co.	4,645		321,109

			7,147,986

FOREST PRODUCTS & PAPER – 0.47%
Bowater Inc.	1,947		63,258
Caraustar Industries Inc.¹	1,050		9,387
Georgia-Pacific Corp.	7,670		262,851
International Paper Co.	16,363		561,087
Louisiana-Pacific Corp.	3,299		81,155
MeadWestvaco Corp.	6,640		195,548
Neenah Paper Inc.	507		15,256
Pope & Talbot Inc.	442		5,768
Potlatch Corp.	1,040		49,119
Temple-Inland Inc.	3,770		127,237
Wausau-Mosinee Paper Corp.²	1,461		19,387
Weyerhaeuser Co.	8,001		548,949

			1,939,002

GAS – 0.32%
AGL Resources Inc.	2,520		87,192
Atmos Energy Corp.	2,550		67,065
Energen Corp.	1,051		65,109
KeySpan Corp.²	5,388		204,367
New Jersey Resources Corp.	868		37,636
Nicor Inc.	1,495		55,270
Northwest Natural Gas Co.²	902		32,021
ONEOK Inc.²	3,248		93,737
Peoples Energy Corp.	1,201		47,560
Piedmont Natural Gas Co.²	2,589		59,418
Sempra Energy	6,840		276,199
Southern Union Co.^1,2	3,156		75,555
UGI Corp.	1,731		86,948
Vectren Corp.	2,692		72,711
WGL Holdings Inc.²	1,646		49,890

			1,310,678

HAND & MACHINE TOOLS – 0.11%
Black & Decker Corp.	2,744		229,481
Kennametal Inc.	1,237		56,036
Regal-Beloit Corp.²	722		19,097
Snap-On Inc.	1,778		58,976
Stanley Works (The)	2,647		113,900

			477,490

HEALTH CARE - PRODUCTS – 3.96%
Advanced Medical Optics Inc.¹	1,305		48,259
Alcon Inc.¹	2,644		256,468
American Medical Systems Holdings Inc.¹	1,924		33,593
ArthroCare Corp.^1,2	615		18,069
Bard (C.R.) Inc.	3,493		248,597
Bausch & Lomb Inc.	1,784		133,800
Baxter International Inc.	20,668		766,783
Beckman Coulter Inc.	2,111		140,825
Becton, Dickinson & Co.	7,921		463,537
Biomet Inc.	7,964		308,127
Biosite Inc.^1,2	525		29,925
Bioveris Corp.^1,2	734		3,509
Boston Scientific Corp.¹	20,298		600,415
Cooper Companies Inc.²	1,468		99,163
Cyberonics Inc.¹	607		22,878
Cytyc Corp.^1,2	3,771		80,360
Dade Behring Holdings Inc.¹	1,415		87,263
Datascope Corp.	458		13,154
DENTSPLY International Inc.	2,406		131,512
Diagnostic Products Corp.	799		38,751
Edwards Lifesciences Corp.^1,2	2,093		92,176
Gen-Probe Inc.¹	1,689		84,771
Guidant Corp.	10,571		783,100
Haemonetics Corp.¹	900		38,493
Henry Schein Inc.¹	3,002		112,605
Hillenbrand Industries Inc.	1,942		107,237
IDEXX Laboratories Inc.^1,2	1,194		67,748
Immucor Inc.¹	1,364		40,702


SCHEDULES OF INVESTMENTS		27

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	*Shares*	*Value*
INAMED Corp.¹	1,198	$	72,886
Intuitive Surgical Inc.¹	1,037		44,529
Invacare Corp.	1,042		42,680
Johnson & Johnson	99,814		6,850,235
Medtronic Inc.	40,732		2,146,576
Mentor Corp.	1,175		43,122
Oakley Inc.	894		11,935
Patterson Companies Inc.¹	3,910		197,650
PolyMedica Corp.	916		28,387
PSS World Medical Inc.^1,2	2,395		26,728
ResMed Inc.^1,2	1,089		67,627
Respironics Inc.¹	1,224		77,345
St. Jude Medical Inc.¹	12,019		469,102
Steris Corp.¹	2,405		56,950
Stryker Corp.	9,354		454,137
Sybron Dental Specialties Inc.^1,2	1,354		50,437
TECHNE Corp.¹	1,234		51,557
Varian Medical Systems Inc.¹	4,599		155,170
Viasys Healthcare Inc.¹	903		19,180
VISX Inc.¹	1,511		36,022
Zimmer Holdings Inc.¹	8,254		672,041

			16,426,116

HEALTH CARE - SERVICES – 1.89%
Aetna Inc.	10,317		756,958
AMERIGROUP Corp.¹	1,662		58,369
Apria Healthcare Group Inc.¹	1,812		54,541
Beverly Enterprises Inc.¹	3,454		40,481
Centene Corp.^1,2	1,237		34,450
Community Health Systems Inc.¹	2,924		106,580
Covance Inc.¹	2,095		95,616
Coventry Health Care Inc.¹	3,496		239,231
DaVita Inc.¹	3,331		134,239
HCA Inc.²	13,475		752,444
Health Management Associates Inc. Class A²	7,763		191,979
Health Net Inc.^1,2	3,764		128,089
Humana Inc.¹	5,360		185,724
Laboratory Corp. of America Holdings¹	4,540		224,730
LifePoint Hospitals Inc.¹	1,589		70,631
Lincare Holdings Inc.¹	3,323		141,826
Manor Care Inc.	2,912		97,115
OCA Inc.^1,2	1,494		6,066
Odyssey Healthcare Inc.^1,2	1,167		13,339
PacifiCare Health Systems Inc.¹	2,893		172,886
Pediatrix Medical Group Inc.¹	752		51,204
Quest Diagnostics Inc.	2,646		279,947
Renal Care Group Inc.¹	2,158		82,328
Sierra Health Services Inc.^1,2	817		52,852
Sunrise Senior Living Inc.¹	599		30,693
Tenet Healthcare Corp.¹	15,883		190,120
Triad Hospitals Inc.^1,2	2,576		132,020
UnitedHealth Group Inc.	22,016		2,080,732
Universal Health Services Inc. Class B	1,909		108,317
WellChoice Inc.¹	986		55,413
WellPoint Inc.¹	9,969		1,273,540

			7,842,460

HOLDING COMPANIES - DIVERSIFIED – 0.02%
Leucadia National Corp.²	2,548		88,619

			88,619

HOME BUILDERS – 0.47%
Beazer Homes USA Inc.²	1,284		58,550
Centex Corp.	4,216		243,348
Champion Enterprises Inc.¹	2,384		22,505
D.R. Horton Inc.	9,763		297,772
Fleetwood Enterprises Inc.^1,2	1,921		14,676
Hovnanian Enterprises Inc. Class A¹	1,184		60,112
KB Home	2,490		141,930
Lennar Corp. Class A	4,049		208,402
Lennar Corp. Class B	320		15,331
M.D.C. Holdings Inc.	974		63,680
Meritage Homes Corp.¹	786		49,746
Monaco Coach Corp.²	1,046		14,832
NVR Inc.¹	192		137,923
Pulte Homes Inc.	3,545		253,290
Ryland Group Inc.	1,528		93,819
Standard-Pacific Corp.	1,064		76,193
Thor Industries Inc.²	1,220		32,879
Toll Brothers Inc.^1,2	1,604		121,583
Winnebago Industries Inc.²	1,182		34,443

			1,941,014


28		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	*Shares*	*Value*
HOME FURNISHINGS – 0.15%
Ethan Allen Interiors Inc.²	1,211	$	36,487
Furniture Brands International Inc.²	1,792		34,729
Harman International Industries Inc.	2,231		175,312
La-Z-Boy Inc.²	1,770		20,957
Leggett & Platt Inc.	6,493		175,051
Maytag Corp.²	2,587		25,068
Whirlpool Corp.	2,179		135,229

			602,833

HOUSEHOLD PRODUCTS & WARES – 0.34%
American Greetings Corp. Class A	2,105		47,678
Avery Dennison Corp.	3,292		172,336
Blyth Inc.	1,005		27,547
Church & Dwight Co. Inc.²	2,029		73,085
Clorox Co.	7,236		458,039
Fortune Brands Inc.	4,816		407,337
Fossil Inc.¹	1,365		31,750
Jarden Corp.^1,2	818		36,540
Scotts Miracle-Gro Co. (The) Class A¹	721		52,200
Tupperware Corp.²	1,808		38,149
WD-40 Co.	586		16,431
Yankee Candle Co. Inc. (The)¹	1,697		47,160

			1,408,252

HOUSEWARES – 0.07%
Newell Rubbermaid Inc.²	9,344		203,045
Toro Co.	1,658		68,509

			271,554

INSURANCE – 4.28%
ACE Ltd.	9,554		410,440
AFLAC Inc.	17,044		692,839
Allmerica Financial Corp.¹	1,803		60,527
Allstate Corp. (The)	23,288		1,307,854
Ambac Financial Group Inc.	3,655		244,337
American Financial Group Inc.	1,203		37,401
American International Group Inc.	76,878		3,909,246
American National Insurance Co.	490		50,274
AmerUs Group Co.²	1,399		65,767
AON Corp.	8,635		180,040
Axis Capital Holdings Ltd.	2,834		75,384
Berkley (W.R.) Corp.	3,592		116,740
Brown & Brown Inc.	1,934		84,612
Chubb Corp.	6,411		524,292
CIGNA Corp.	4,659		428,535
Cincinnati Financial Corp.	5,551		223,372
CNA Financial Corp.^1,2	1,034		28,383
Commerce Group Inc.	1,053		62,211
Conseco Inc.¹	5,256		101,125
Delphi Financial Group Inc. Class A	909		37,742
Endurance Specialty Holdings Ltd.	1,341		48,544
Erie Indemnity Co. Class A	916		47,064
Everest Re Group Ltd.	1,908		156,838
Fidelity National Financial Inc.	5,166		165,880
First American Corp.	2,615		93,617
Gallagher (Arthur J.) & Co.²	3,151		87,724
Hartford Financial Services Group Inc.	9,791		708,575
HCC Insurance Holdings Inc.	2,198		78,183
Hilb, Rogal & Hobbs Co.²	1,008		35,290
Horace Mann Educators Corp.	1,349		22,097
IPC Holdings Ltd.²	1,220		45,909
Jefferson-Pilot Corp.²	4,597		230,815
Lincoln National Corp.	5,981		268,966
Loews Corp.	4,242		300,673
Markel Corp.^1,2	295		101,214
Marsh & McLennan Companies Inc.	16,533		463,420
MBIA Inc.	4,828		252,891
Mercury General Corp.²	902		47,680
MetLife Inc.	14,044		546,312
MGIC Investment Corp.	3,337		196,883
Montpelier Re Holdings Ltd.	1,815		60,240
Nationwide Financial Services Inc.	1,972		69,868
Ohio Casualty Corp.¹	1,950		45,727
Old Republic International Corp.	5,838		137,777
PartnerRe Ltd.	1,786		104,088
Philadelphia Consolidated Holding Corp.¹	627		47,025
Phoenix Companies Inc.²	2,803		31,758
Platinum Underwriters Holdings Ltd.²	1,182		34,987
PMI Group Inc. (The)	3,256		114,481
Presidential Life Corp.	751		10,897
Principal Financial Group Inc.	10,571		413,115
Progressive Corp. (The)²	5,922		540,501
Protective Life Corp.	2,235		85,466


SCHEDULES OF INVESTMENTS		29

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	*Shares*	*Value*
Prudential Financial Inc.	17,439	$	996,639
Radian Group Inc.	3,141		139,555
Reinsurance Group of America Inc.	1,163		52,009
RenaissanceRe Holdings Ltd.	2,341		104,807
SAFECO Corp.	4,264		224,585
Selective Insurance Group Inc.²	894		39,470
St. Paul Travelers Companies Inc.²	22,471		804,462
StanCorp Financial Group Inc.	917		70,169
Torchmark Corp.	3,699		197,638
Transatlantic Holdings Inc.²	923		53,036
Unitrin Inc.	1,508		68,614
UNUMProvident Corp.²	9,759		163,170
White Mountains Insurance Group Ltd.²	261		163,650
Willis Group Holdings Ltd.	4,046		135,339
XL Capital Ltd. Class A	4,592		322,818

			17,771,587

INTERNET – 1.44%
Agile Software Corp.¹	1,506		9,894
Akamai Technologies Inc.^1,2	3,929		46,401
Amazon.com Inc.¹	10,001		323,632
Ariba Inc.¹	1,851		11,180
Ask Jeeves Inc.¹	2,008		54,598
Avocent Corp.¹	1,664		41,833
Check Point Software Technologies Ltd.^1,2	6,025		126,224
CheckFree Corp.^1,2	2,284		83,777
CNET Networks Inc.^1,2	4,187		41,514
Digital River Inc.^1,2	1,076		28,622
DoubleClick Inc.¹	4,484		36,051
E.piphany Inc.¹	2,547		7,819
EarthLink Inc.¹	4,836		44,394
eBay Inc.¹	33,334		1,057,688
Entrust Inc.¹	1,666		6,297
eResearch Technology Inc.^1,2	1,560		17,722
F5 Networks Inc.¹	1,042		44,608
Google Inc. Class A¹	3,850		847,000
IAC/InterActiveCorp^1,2	16,911		367,645
InfoSpace Inc.^1,2	888		27,519
Internet Security Systems Inc.¹	1,476		28,708
Interwoven Inc.¹	1,385		10,692
Keynote Systems Inc.¹	843		9,231
Macromedia Inc.¹	2,446		96,886
MatrixOne Inc.¹	1,499		6,401
McAfee Inc.¹	5,412		113,165
Monster Worldwide Inc.¹	3,649		83,963
NetBank Inc.	1,647		13,522
NetFlix Inc.^1,2	887		10,254
Openwave Systems Inc.^1,2	2,157		28,882
PC-Tel Inc.¹	599		4,337
Priceline.com Inc.^1,2	713		18,082
RealNetworks Inc.¹	3,760		23,162
RSA Security Inc.^1,2	2,249		24,154
S1 Corp.¹	2,243		11,843
SonicWALL Inc.¹	1,811		9,309
Stamps.com Inc.^1,2	764		14,768
Symantec Corp.¹	23,863		448,147
TIBCO Software Inc.¹	5,978		42,683
United Online Inc.¹	2,123		18,661
VeriSign Inc.¹	8,449		223,561
Verity Inc.¹	1,196		9,807
Vignette Corp.¹	8,699		10,178
WatchGuard Technologies Inc.¹	758		2,456
WebMD Corp.^1,2	10,611		100,805
webMethods Inc.¹	1,657		7,738
Websense Inc.¹	707		37,506
Yahoo! Inc.¹	38,899		1,342,404

			5,975,723

IRON & STEEL – 0.15%
AK Steel Holding Corp.^1,2	3,607		26,151
Allegheny Technologies Inc.	2,591		58,038
Carpenter Technology Corp.	698		38,599
Cleveland-Cliffs Inc.	708		41,071
Nucor Corp.	4,844		247,528
Ryerson Tull Inc.²	906		9,468
Steel Dynamics Inc.	1,579		42,917
United States Steel Corp.²	3,797		162,360

			626,132

LEISURE TIME – 0.41%
Bally Total Fitness Holding Corp.^1,2	1,057		3,361
Brunswick Corp.	3,269		137,298
Callaway Golf Co.²	2,371		25,559


30		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	*Shares*	*Value*
Carnival Corp.	14,328	$	700,353
Harley-Davidson Inc.	9,957		468,178
Multimedia Games Inc.^1,2	759		6,004
Nautilus Inc.²	1,194		29,683
Polaris Industries Inc.	1,461		84,095
Royal Caribbean Cruises Ltd.²	3,276		137,658
Sabre Holdings Corp.	4,565		89,291
WMS Industries Inc.^1,2	568		14,427

			1,695,907

LODGING – 0.48%
Aztar Corp.^1,2	1,180		32,226
Boyd Gaming Corp.²	1,520		80,226
Caesars Entertainment Inc.¹	8,840		176,358
Harrah’s Entertainment Inc.	3,785		248,372
Hilton Hotels Corp.	12,181		265,911
La Quinta Corp.¹	5,089		44,274
Marriott International Inc. Class A	6,190		388,423
MGM Mirage¹	1,991		138,992
Starwood Hotels & Resorts Worldwide Inc.	7,003		380,543
Station Casinos Inc.	1,625		104,861
Wynn Resorts Ltd.^1,2	2,255		119,380

			1,979,566

MACHINERY – 0.64%
AGCO Corp.¹	3,183		54,748
Albany International Corp. Class A	882		27,660
Astec Industries Inc.¹	450		10,485
Briggs & Stratton Corp.²	1,636		52,957
Caterpillar Inc.	11,472		1,010,110
Cognex Corp.²	1,349		29,462
Cummins Inc.²	1,287		87,516
Deere & Co.	8,392		524,836
Flowserve Corp.¹	1,808		50,190
Graco Inc.	2,289		77,300
IDEX Corp.	1,675		62,394
Joy Global Inc.	2,508		84,946
Kadant Inc.¹	460		7,912
Manitowoc Co. Inc. (The)	892		35,680
Nordson Corp.	890		28,676
Presstek Inc.¹	1,067		7,949
Rockwell Automation Inc.	5,641		260,783
Stewart & Stevenson Services Inc.	905		21,720
Terex Corp.¹	1,690		63,172
Unova Inc.^1,2	1,453		25,805
Zebra Technologies Corp. Class A¹	2,397		114,481

			2,638,782

MANUFACTURING – 5.32%
Actuant Corp. Class A^1,2	878		37,394
Acuity Brands Inc.	1,351		32,302
AptarGroup Inc.	1,207		58,214
Brink’s Co. (The)	1,812		58,455
Carlisle Companies Inc.	1,042		74,836
CLARCOR Inc.	779		39,425
Cooper Industries Ltd.	3,131		199,319
Crane Co.	1,705		43,648
Danaher Corp.	8,574		434,102
Donaldson Co. Inc.²	2,446		72,769
Dover Corp.	6,878		250,084
Eastman Kodak Co.²	9,730		243,250
Eaton Corp.	5,100		299,115
General Electric Co.	355,473		12,868,123
Harsco Corp.	1,356		72,749
Honeywell International Inc.	26,160		935,482
Illinois Tool Works Inc.	8,726		731,413
Ingersoll-Rand Co. Class A²	5,896		453,226
ITT Industries Inc.	3,103		280,697
Jacuzzi Brands Inc.¹	2,677		24,227
Lancaster Colony Corp.	849		35,284
Matthews International Corp. Class A	1,091		38,851
Pall Corp.	4,335		116,308
Pentair Inc.	3,328		132,388
Roper Industries Inc.²	1,390		94,061
SPX Corp.²	2,572		99,511
Teleflex Inc.	1,181		63,148
Textron Inc.	3,930		296,126
3M Co.	24,051		1,839,180
Tredegar Corp.	895		14,553
Trinity Industries Inc.²	1,325		30,939
Tyco International Ltd.	67,747		2,121,159

			22,090,338


SCHEDULES OF INVESTMENTS		31

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	*Shares*	*Value*
MEDIA – 3.81%
Belo (A.H.) Corp.	3,298	$	77,272
Cablevision Systems Corp.¹	6,313		163,822
Charter Communications Inc. Class A^1,2	8,573		9,945
Clear Channel Communications Inc.²	18,076		577,347
Comcast Corp. Class A¹	42,442		1,362,813
Comcast Corp. Class A Special¹	28,339		899,196
Cox Radio Inc. Class A¹	1,191		18,723
Cumulus Media Inc. Class A¹	1,801		23,377
Dex Media Inc.²	3,585		78,512
DIRECTV Group Inc. (The)¹	30,643		432,679
Dow Jones & Co. Inc.²	1,588		53,103
EchoStar Communications Corp.	7,120		206,124
Emmis Communications Corp.^1,2	1,638		25,274
Entercom Communications Corp.¹	1,660		53,502
Gannett Co. Inc.²	8,581		660,737
Gemstar-TV Guide International Inc.¹	9,070		34,920
Hearst-Argyle Television Inc.	881		22,113
Hollinger International Inc.	1,321		12,483
Insight Communications Co. Inc.^1,2	1,792		20,088
Knight Ridder Inc.	2,631		170,226
Lee Enterprises Inc.	1,194		49,563
Liberty Media Corp. Class A	86,634		869,805
Liberty Media International Inc. Class A¹	5,161		214,027
McClatchy Co. (The) Class A	713		50,409
McGraw-Hill Companies Inc. (The)	6,461		562,624
Media General Inc. Class A	742		45,470
Meredith Corp.	1,320		62,040
New York Times Co. Class A²	4,829		161,095
News Corp. Class A	66,116		1,010,252
News Corp. Class B²	18,627		296,542
Radio One Inc. Class D^1,2	2,396		31,316
Readers Digest Association Inc. (The)	2,940		49,980
Scholastic Corp.^1,2	845		29,448
Scripps (E.W.) Co. Class A²	2,682		136,594
Sinclair Broadcast Group Inc. Class A	1,361		10,425
Sirius Satellite Radio Inc.^1,2	38,511		183,312
Time Warner Inc.¹	148,199		2,491,225
Tribune Co.	7,189		277,495
UnitedGlobalCom Inc. Class A¹	12,244		109,584
Univision Communications Inc. Class A^1,2	8,488		223,150
Viacom Inc. Class A	1,238		43,058
Viacom Inc. Class B	49,423		1,711,024
Walt Disney Co. (The)²	68,972		1,820,861
Washington Post Co. (The) Class B	200		172,850
Westwood One Inc.¹	2,645		48,404
Wiley (John) & Sons Inc. Class A	1,299		46,972
XM Satellite Radio Holdings Inc. Class A^1,2	6,802		188,687
Young Broadcasting Inc. Class A¹	591		4,444

			15,802,912

METAL FABRICATE & HARDWARE – 0.10%
Commercial Metals Co.	1,849		47,168
Kaydon Corp.²	1,050		28,812
Mueller Industries Inc.	1,091		28,257
Precision Castparts Corp.	2,191		161,389
Quanex Corp.	763		38,501
Timken Co. (The)	2,853		70,869
Worthington Industries Inc.	2,534		41,203

			416,199

MINING – 0.49%
Alcoa Inc.	29,227		848,168
Coeur d’Alene Mines Corp.^1,2	7,282		22,501
Freeport-McMoRan Copper & Gold Inc.	5,789		200,647
Meridian Gold Inc.¹	3,133		47,747
Newmont Mining Corp.	13,751		522,125
Owens-Illinois Inc.¹	4,538		111,272
Phelps Dodge Corp.	3,161		271,372
RTI International Metals Inc.¹	599		13,472
Stillwater Mining Co.^1,2	1,354		9,884

			2,047,188

OFFICE & BUSINESS EQUIPMENT – 0.20%
IKON Office Solutions Inc.	4,352		37,645
Imagistics International Inc.¹	477		12,807
Pitney Bowes Inc.	7,793		348,503
Xerox Corp.¹	32,361		428,783

			827,738


32		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	*Shares*	*Value*
OFFICE FURNISHINGS – 0.04%
Herman Miller Inc.²	2,379	$	68,039
HNI Corp.	1,567		79,384
Interface Inc. Class A^1,2	1,657		9,942
Steelcase Inc. Class A²	1,609		21,142

			178,507

OIL & GAS – 6.93%
Amerada Hess Corp.	2,817		263,812
Anadarko Petroleum Corp.	8,408		614,120
Apache Corp.	11,027		620,710
Atwood Oceanics Inc.¹	375		21,401
Burlington Resources Inc.	13,315		647,242
Cabot Oil & Gas Corp.²	1,579		46,486
Cheniere Energy Inc.¹	1,490		41,273
Chesapeake Energy Corp.	9,159		176,219
ChevronTexaco Corp.	67,446		3,507,192
Cimarex Energy Co.^1,2	1,402		49,771
ConocoPhillips	21,101		2,212,440
Denbury Resources Inc.¹	1,730		54,910
Devon Energy Corp.	15,501		700,180
Diamond Offshore Drilling Inc.²	2,071		91,352
ENSCO International Inc.	5,079		165,575
EOG Resources Inc.	7,924		376,786
Exxon Mobil Corp.	216,915		12,370,662
Forest Oil Corp.¹	1,725		66,464
GlobalSantaFe Corp.	7,195		241,752
Grey Wolf Inc.¹	5,667		34,002
Helmerich & Payne Inc.	1,516		58,275
Houston Exploration Co.¹	943		48,036
Kerr-McGee Corp.	4,227		328,015
Marathon Oil Corp.	11,594		539,933
Murphy Oil Corp.	2,931		261,123
Nabors Industries Ltd.¹	5,003		269,512
Newfield Exploration Co.¹	2,022		143,623
Noble Corp.	4,357		221,771
Noble Energy Inc.	1,991		127,663
Occidental Petroleum Corp.	13,223		912,387
Parker Drilling Co.¹	3,448		18,412
Patina Oil & Gas Corp.	2,214		85,018
Patterson-UTI Energy Inc.	5,642		135,239
Pioneer Natural Resources Co.	4,895		199,031
Plains Exploration & Production Co.¹	2,482		79,871
Pogo Producing Co.	1,970		88,670
Premcor Inc.	2,623		173,511
Pride International Inc.¹	4,040		90,092
Quicksilver Resources Inc.^1,2	1,107		56,822
Range Resources Corp.	2,331		52,797
Rowan Companies Inc.	3,453		91,608
Southwestern Energy Co.^1,2	1,226		72,028
Stone Energy Corp.¹	897		40,311
Sunoco Inc.	2,558		253,907
Tesoro Corp.¹	2,218		84,151
Transocean Inc.¹	10,841		502,697
Unit Corp.¹	1,352		51,863
Unocal Corp.	8,897		485,331
Valero Energy Corp.	8,607		589,838
Vintage Petroleum Inc.	1,787		51,626
XTO Energy Inc.	11,657		351,692

			28,767,202

OIL & GAS SERVICES – 1.00%
Baker Hughes Inc.	11,223		495,159
BJ Services Co.	5,403		263,396
Cal Dive International Inc.^1,2	1,204		53,554
Cooper Cameron Corp.¹	1,901		104,441
Core Laboratories NV^1,2	866		20,438
FMC Technologies Inc.¹	2,006		60,842
Global Industries Ltd.¹	2,250		21,690
Grant Prideco Inc.¹	3,950		87,493
Halliburton Co.	16,841		700,417
Hanover Compressor Co.^1,2	2,219		23,011
Input/Output Inc.^1,2	2,571		15,529
Lone Star Technologies Inc.¹	900		35,046
Maverick Tube Corp.¹	1,358		39,504
National Oilwell Varco Inc.¹	5,609		222,902
Newpark Resources Inc.¹	2,408		14,472
Oceaneering International Inc.¹	755		24,772
Schlumberger Ltd.	19,857		1,358,417
Seacor Holdings Inc.^1,2	562		32,040
Smith International Inc.	3,468		201,768
Superior Energy Services Inc.¹	2,571		38,256
Tidewater Inc.²	1,801		62,080
Veritas DGC Inc.¹	1,054		26,982
Weatherford International Ltd.¹	4,453		232,224

			4,134,433


SCHEDULES OF INVESTMENTS		33

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	*Shares*	*Value*
PACKAGING & CONTAINERS – 0.20%
Ball Corp.	3,544	$	139,988
Bemis Co. Inc.	3,544		97,673
Chesapeake Corp.	632		12,273
Crown Holdings Inc.¹	5,530		83,227
Packaging Corp. of America	2,098		46,974
Pactiv Corp.¹	5,048		108,229
Sealed Air Corp.^1,2	2,868		138,926
Smurfit-Stone Container Corp.	8,603		112,785
Sonoco Products Co.	3,284		88,964

			829,039

PHARMACEUTICALS – 5.96%
Abbott Laboratories	52,354		2,573,723
Abgenix Inc.¹	2,559		17,836
Accelrys Inc.¹	746		3,857
Accredo Health Inc.¹	1,673		75,787
Alkermes Inc.^1,2	2,849		32,051
Allergan Inc.	4,370		307,604
Alpharma Inc. Class A	1,496		14,122
American Pharmaceutical Partners Inc.¹	1,361		70,935
AmerisourceBergen Corp.	3,788		232,129
Amylin Pharmaceuticals Inc.^1,2	3,370		57,290
Andrx Corp.¹	2,520		50,173
Barr Pharmaceuticals Inc.¹	2,989		155,010
Bristol-Myers Squibb Co.	65,543		1,704,118
Cardinal Health Inc.	14,543		808,155
Caremark Rx Inc.¹	15,339		614,327
Cell Therapeutics Inc.^1,2	2,139		8,235
Cephalon Inc.^1,2	1,936		84,990
Cubist Pharmaceuticals Inc.¹	1,531		13,856
CV Therapeutics Inc.^1,2	917		18,175
Express Scripts Inc.¹	2,182		195,594
Forest Laboratories Inc.¹	12,479		445,251
Gilead Sciences Inc.¹	14,476		537,060
Hospira Inc.¹	5,287		177,379
ImClone Systems Inc.¹	2,287		72,841
Impax Laboratories Inc.^1,2	1,454		23,657
IVAX Corp.¹	7,145		135,041
Kinetic Concepts Inc.¹	1,640		100,778
King Pharmaceuticals Inc.¹	8,106		64,848
Ligand Pharmaceuticals Inc. Class B¹	2,364		12,482
Lilly (Eli) & Co.	32,454		1,897,585
Medarex Inc.¹	2,391		16,928
Medco Health Solutions Inc.¹	9,077		462,655
Medicines Co. (The)^1,2	1,480		31,598
Medicis Pharmaceutical Corp. Class A²	1,985		55,779
Merck & Co. Inc.	74,662		2,531,042
MGI Pharma Inc.¹	2,442		53,846
Mylan Laboratories Inc.	8,163		134,690
Nabi Biopharmaceuticals¹	1,690		18,421
NBTY Inc.¹	2,151		45,859
Neurocrine Biosciences Inc.¹	1,159		40,519
Noven Pharmaceuticals Inc.^1,2	764		12,705
NPS Pharmaceuticals Inc.^1,2	1,328		16,135
Omnicare Inc.	3,439		119,230
Onyx Pharmaceuticals Inc.¹	1,059		32,713
OSI Pharmaceuticals Inc.^1,2	1,501		71,050
Par Pharmaceutical Companies Inc.^1,2	1,172		35,195
Perrigo Co.	2,642		48,401
Pfizer Inc.	253,291		6,881,915
Priority Healthcare Corp. Class B^1,2	1,193		27,177
Schering-Plough Corp.	49,499		1,033,044
Sepracor Inc.^1,2	3,459		207,263
Taro Pharmaceutical Industries Ltd.¹	892		25,922
Trimeris Inc.¹	573		5,701
United Therapeutics Inc.^1,2	731		35,081
Valeant Pharmaceuticals International	3,059		63,474
VCA Antech Inc.^1,2	2,853		66,418
Vicuron Pharmaceuticals Inc.¹	2,000		32,700
Watson Pharmaceuticals Inc.¹	3,737		112,110
Wyeth	44,941		2,019,649

			24,742,109

PIPELINES – 0.30%
Dynegy Inc. Class A¹	9,334		31,269
El Paso Corp.	20,893		208,721
Equitable Resources Inc.	2,001		115,338
Kinder Morgan Inc.	3,311		253,159
National Fuel Gas Co.²	2,702		73,575
Questar Corp.	2,843		166,031
Western Gas Resources Inc.	1,903		63,579
Williams Companies Inc.	18,481		314,547

			1,226,219


34		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	*Shares*	*Value*
REAL ESTATE – 0.04%
St. Joe Co. (The)	2,368	$	164,789

			164,789

REAL ESTATE INVESTMENT TRUSTS – 1.93%
Alexandria Real Estate Equities Inc.	599		41,223
AMB Property Corp.²	2,861		111,550
American Financial Realty Trust²	3,552		54,452
Annaly Mortgage Management Inc.²	3,993		76,346
Apartment Investment & Management Co. Class A	3,195		121,793
Archstone-Smith Trust	6,675		240,100
Arden Realty Group Inc.	2,105		75,127
AvalonBay Communities Inc.	2,439		175,608
Boston Properties Inc.	3,662		243,413
Brandywine Realty Trust	1,665		47,120
BRE Properties Inc. Class A²	1,612		59,999
Camden Property Trust²	1,824		93,024
Capital Automotive REIT	1,557		52,907
CarrAmerica Realty Corp.²	1,783		58,910
Catellus Development Corp.	3,096		85,759
CBL & Associates Properties Inc.	1,012		78,298
CenterPoint Properties Trust	1,709		70,428
Colonial Properties Trust	1,355		52,371
Cousins Properties Inc.	1,354		36,558
Crescent Real Estate Equities Co.	3,261		54,785
CRT Properties Inc.	884		20,412
Developers Diversified Realty Corp.	3,439		145,951
Duke Realty Corp.	4,651		142,321
Equity Inns Inc.	1,794		20,200
Equity Lifestyle Properties Inc.	619		22,655
Equity Office Properties Trust	13,587		427,583
Equity Residential	9,391		322,581
Essex Property Trust Inc.²	703		53,393
Federal Realty Investment Trust²	1,695		90,683
FelCor Lodging Trust Inc.^1,2	1,484		18,164
First Industrial Realty Trust Inc.²	1,387		52,983
Gables Residential Trust	985		36,100
General Growth Properties Inc.²	7,460		291,761
Glenborough Realty Trust Inc.	1,029		21,136
Health Care Property Investors Inc.	4,568		117,124
Health Care REIT Inc.	1,849		61,942
Healthcare Realty Trust Inc.²	1,641		63,359
Highwoods Properties Inc.	1,806		50,803
Home Properties Inc.	1,204		50,387
Hospitality Properties Trust	2,182		91,164
Host Marriott Corp.	10,615		178,544
HRPT Properties Trust	7,025		82,544
Impac Mortgage Holdings Inc.²	2,328		42,649
iStar Financial Inc.	3,715		148,006
Kilroy Realty Corp.	866		37,784
Kimco Realty Corp.²	3,178		176,029
Liberty Property Trust	2,743		109,254
Macerich Co. (The)	2,004		120,841
Mack-Cali Realty Corp.	1,952		85,868
Meristar Hospitality Corp.¹	3,028		20,742
Mills Corp.	1,759		100,509
Nationwide Health Properties Inc.	2,090		44,789
New Century Financial Corp.	1,669		75,856
New Plan Excel Realty Trust Inc.²	3,454		89,148
Novastar Financial Inc.²	846		30,202
Pan Pacific Retail Properties Inc.	1,322		79,875
Pennsylvania Real Estate Investment Trust	1,230		51,845
Plum Creek Timber Co. Inc.	6,265		216,393
Post Properties Inc.²	1,226		39,943
Prentiss Properties Trust	1,421		47,206
ProLogis	6,188		244,983
Public Storage Inc.²	2,990		175,513
Rayonier Inc.²	1,657		83,281
Realty Income Corp.²	2,828		68,183
Reckson Associates Realty Corp.	2,812		90,687
Redwood Trust Inc.²	796		39,896
Regency Centers Corp.	2,073		109,143
Saxon Capital Inc.²	1,424		24,493
Shurgard Storage Centers Inc. Class A	1,533		64,125
Simon Property Group Inc.	7,438		491,429
SL Green Realty Corp.	1,375		83,875
Taubman Centers Inc.²	1,695		50,172
Thornburg Mortgage Inc.²	2,990		89,580
Trizec Properties Inc.	3,280		65,567
United Dominion Realty Trust Inc.	4,369		96,773
Ventas Inc.	2,822		76,138


SCHEDULES OF INVESTMENTS		35

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	*Shares*	*Value*
Vornado Realty Trust	3,927	$	300,219
Washington Real Estate Investment Trust²	1,451		43,254
Weingarten Realty Investors	2,762		99,460

			8,005,271

RETAIL – 6.02%
Abercrombie & Fitch Co. Class A	2,930		158,074
Advance Auto Parts Inc.¹	2,422		129,214
Aeropostale Inc.¹	1,809		50,525
American Eagle Outfitters Inc.	3,879		101,707
AnnTaylor Stores Corp.¹	2,274		55,690
Applebee’s International Inc.	2,895		71,738
AutoNation Inc.¹	6,423		117,348
AutoZone Inc.¹	2,190		181,770
Barnes & Noble Inc.¹	1,818		64,721
Bed Bath & Beyond Inc.¹	10,087		375,337
Best Buy Co. Inc.	8,912		448,630
Big Lots Inc.^1,2	4,034		41,066
BJ’s Wholesale Club Inc.^1,2	2,245		59,829
Bob Evans Farms Inc.	1,211		24,704
Borders Group Inc.	2,713		65,627
Brinker International Inc.¹	2,967		100,285
CarMax Inc.¹	3,361		91,688
Casey’s General Store Inc.²	1,654		27,920
Cato Corp. Class A	594		15,266
CBRL Group Inc.	1,612		62,110
CEC Entertainment Inc.^1,2	1,339		48,472
Charming Shoppes Inc.¹	3,767		28,026
Cheesecake Factory (The)^1,2	2,636		80,899
Chico’s FAS Inc.^1,2	5,984		153,370
Children’s Place Retail Stores Inc. (The)^1,2	491		18,270
Christopher & Banks Corp.²	1,191		18,603
Circuit City Stores Inc.	6,403		101,167
Claire’s Stores Inc.	2,690		58,696
Copart Inc.¹	2,162		46,872
Cost Plus Inc.¹	740		17,161
Costco Wholesale Corp.	15,555		631,222
CVS Corp.	13,339		688,026
Darden Restaurants Inc.	4,975		149,250
Dillard’s Inc. Class A²	2,203		51,264
Dollar General Corp.	10,239		208,364
Dollar Tree Stores Inc.¹	3,903		95,584
Dress Barn Inc.¹	588		10,114
Family Dollar Stores Inc.	5,188		139,972
Federated Department Stores Inc.	5,821		334,708
Foot Locker Inc.	5,096		135,859
Fred’s Inc.²	1,033		14,917
GameStop Corp. Class B¹	1,006		23,480
Gap Inc. (The)	21,487		458,747
Genesco Inc.^1,2	738		18,989
Guitar Center Inc.¹	777		38,345
Home Depot Inc.	73,800		2,610,306
Hot Topic Inc.¹	1,505		30,085
IHOP Corp.	735		30,062
Insight Enterprises Inc.¹	1,502		27,186
Jack in the Box Inc.¹	1,235		45,152
Kenneth Cole Productions Inc. Class A	305		9,144
Kohl’s Corp.¹	10,200		485,520
Krispy Kreme Doughnuts Inc.^1,2	2,051		12,142
Limited Brands Inc.	11,542		250,346
Linens ‘n Things Inc.^1,2	1,403		32,732
Lone Star Steakhouse & Saloon Inc.	610		17,294
Longs Drug Stores Corp.²	1,004		36,495
Lowe’s Companies Inc.	23,952		1,248,139
May Department Stores Co. (The)	9,866		346,099
McDonald’s Corp.	42,266		1,238,816
Men’s Wearhouse Inc. (The)^1,2	1,001		41,311
Michaels Stores Inc.	4,512		149,798
MSC Industrial Direct Co. Inc. Class A	1,488		39,983
Neiman-Marcus Group Inc. Class A	1,007		99,008
99 Cents Only Stores^1,2	1,672		18,526
Nordstrom Inc.	3,967		201,643
Nu Skin Enterprises Inc. Class A²	1,815		39,930
Office Depot Inc.¹	10,293		201,537
OfficeMax Inc.	2,998		97,375
O’Reilly Automotive Inc.^1,2	1,784		91,555
Outback Steakhouse Inc.²	2,507		101,283
P.F. Chang’s China Bistro Inc.^1,2	755		41,918
Pacific Sunwear of California Inc.¹	2,688		60,776
Panera Bread Co. Class A¹	942		47,119
Papa John’s International Inc.^1,2	322		11,038


36		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	*Shares*	*Value*
Payless ShoeSource Inc.¹	2,265	$	30,940
Penney (J.C.) Co. Inc. (Holding Co.)	8,545		405,118
Pep Boys-Manny, Moe & Jack Inc.²	2,119		30,047
PETCO Animal Supplies Inc.¹	1,308		40,940
PETsMART Inc.²	4,968		132,397
Pier 1 Imports Inc.²	2,493		36,198
RadioShack Corp.	5,452		136,136
Regis Corp.	1,520		54,310
Rite Aid Corp.¹	14,805		53,742
Ross Stores Inc.	5,197		138,864
Ruby Tuesday Inc.²	2,251		50,648
Ryan’s Restaurant Group Inc.¹	1,648		20,897
Saks Inc.¹	4,181		71,244
Sears Holdings Corp.¹	3,079		416,404
ShopKo Stores Inc.¹	903		21,636
Sonic Corp.^1,2	2,033		65,137
Sports Authority Inc. (The)^1,2	745		19,817
Staples Inc.	25,108		478,810
Starbucks Corp.¹	13,386		662,875
Stein Mart Inc.¹	907		18,376
Talbots Inc. (The)	728		18,600
Target Corp.	27,810		1,290,662
Tiffany & Co.²	4,900		147,735
TJX Companies Inc.²	16,848		381,607
Toys R Us Inc.¹	7,206		182,672
Tractor Supply Co.¹	1,269		51,039
Triarc Companies Inc. Class B²	930		11,941
Tuesday Morning Corp.¹	856		22,479
Urban Outfitters Inc.¹	1,925		85,278
Walgreen Co.	34,446		1,483,245
Wal-Mart Stores Inc.	87,856		4,141,532
Wendy’s International Inc.	3,725		159,914
Williams-Sonoma Inc.¹	3,170		106,163
Yum! Brands Inc.²	9,892		464,528
Zale Corp.^1,2	1,834		49,573

			24,957,448

SAVINGS & LOANS – 0.76%
Anchor BanCorp Wisconsin Inc.	748		19,762
Astoria Financial Corp.	3,648		96,709
Commercial Capital Bancorp Inc.	1,474		23,274
Commercial Federal Corp.	1,446		37,755
Dime Community Bancshares²	1,086		16,116
Downey Financial Corp.	748		48,418
First Niagara Financial Group Inc.	3,937		49,370
FirstFed Financial Corp.¹	591		29,922
Golden West Financial Corp.²	10,312		642,747
Harbor Florida Bancshares Inc.²	734		25,396
Hudson City Bancorp Inc.	2,304		76,424
Independence Community Bank Corp.	2,655		94,730
MAF Bancorp Inc.	1,190		48,052
New York Community Bancorp Inc.²	7,929		140,343
OceanFirst Financial Corp.	451		9,629
People’s Bank	3,141		130,446
PFF Bancorp Inc.	630		17,590
Provident Financial Services Inc.²	2,337		39,706
Sovereign Bancorp Inc.	12,411		255,294
Washington Federal Inc.	3,032		67,583
Washington Mutual Inc.²	29,321		1,211,544
Webster Financial Corp.	1,804		81,992

			3,162,802

SEMICONDUCTORS – 3.08%
Actel Corp.¹	888		12,459
Advanced Micro Devices Inc.¹	11,865		168,839
Agere Systems Inc. Class A¹	28,475		33,316
Agere Systems Inc. Class B¹	31,369		37,015
Altera Corp.¹	12,523		259,602
Amkor Technology Inc.¹	2,866		9,257
Analog Devices Inc.	12,571		428,797
Applied Materials Inc.¹	57,232		851,040
Applied Micro Circuits Corp.¹	10,490		28,008
Asyst Technologies Inc.¹	1,218		3,995
Atmel Corp.¹	15,147		34,990
ATMI Inc.¹	1,045		23,946
Axcelis Technologies Inc.^1,2	3,442		21,375
Broadcom Corp. Class A¹	8,851		264,733
Brooks Automation Inc.^1,2	1,494		19,213
Cirrus Logic Inc.¹	2,552		10,769
Cohu Inc.	599		10,692
Conexant Systems Inc.¹	15,957		17,872
Credence Systems Corp.¹	2,875		18,084
Cree Inc.^1,2	2,552		61,733
Cypress Semiconductor Corp.^1,2	4,040		48,440


SCHEDULES OF INVESTMENTS		37

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	*Shares*	*Value*
DSP Group Inc.¹	901	$	21,714
Emulex Corp.¹	2,851		44,276
ESS Technology Inc.¹	1,037		3,982
Exar Corp.¹	1,353		17,170
Fairchild Semiconductor International Inc. Class A¹	3,997		53,760
Freescale Semiconductor Inc. Class A^1,2	4,142		77,538
Freescale Semiconductor Inc. Class B¹	9,046		170,608
Helix Technology Corp.²	913		10,997
Integrated Circuit Systems Inc.¹	2,516		45,967
Integrated Device Technology Inc.¹	3,615		38,681
Intel Corp.	212,381		4,995,201
International Rectifier Corp.^1,2	2,318		98,608
Intersil Corp. Class A	4,974		86,846
KLA-Tencor Corp.	6,606		257,766
Kopin Corp.¹	2,262		6,944
Kulicke & Soffa Industries Inc.¹	1,639		8,375
Lam Research Corp.¹	4,343		111,398
Lattice Semiconductor Corp.¹	3,451		15,737
Linear Technology Corp.	10,381		371,017
LSI Logic Corp.¹	12,739		68,281
LTX Corp.¹	2,288		8,786
Marvell Technology Group Ltd.¹	6,573		220,064
Maxim Integrated Products Inc.	11,004		411,550
Micrel Inc.¹	2,388		22,447
Microchip Technology Inc.	7,060		201,069
Micron Technology Inc.¹	20,458		198,647
Mindspeed Technologies Inc.^1,2	2,966		4,034
Mykrolis Corp.¹	1,369		17,455
National Semiconductor Corp.	12,173		232,261
Novellus Systems Inc.	4,797		112,394
NVIDIA Corp.¹	5,242		115,009
OmniVision Technologies Inc.^1,2	1,748		24,472
Photronics Inc.^1,2	910		14,469
PMC-Sierra Inc.¹	6,084		49,037
Power Integrations Inc.¹	1,034		22,490
QLogic Corp.¹	3,191		106,069
Rambus Inc.¹	3,353		47,680
Semtech Corp.¹	2,441		41,228
Silicon Image Inc.¹	2,533		25,507
Silicon Laboratories Inc.^1,2	1,457		37,008
Siliconix Inc.¹	154		5,077
Skyworks Solutions Inc.¹	5,184		27,164
Teradyne Inc.¹	6,607		72,809
Texas Instruments Inc.	58,206		1,452,822
Transmeta Corp.^1,2	3,867		2,668
TriQuint Semiconductor Inc.^1,2	4,195		12,417
Ultratech Inc.^1,2	859		13,675
Varian Semiconductor Equipment Associates Inc.¹	1,188		44,301
Veeco Instruments Inc.^1,2	900		11,979
Vitesse Semiconductor Corp.¹	6,884		14,319
Xilinx Inc.	11,681		314,686
Zoran Corp.¹	1,334		14,114

			12,766,748

SOFTWARE – 4.05%
Activision Inc.¹	6,015		86,977
Actuate Corp.¹	2,097		3,984
Acxiom Corp.	2,811		53,409
Adobe Systems Inc.	8,050		478,734
Advent Software Inc.¹	1,058		18,875
Ascential Software Corp.¹	1,984		36,645
Autodesk Inc.	7,717		245,632
Automatic Data Processing Inc.²	19,942		866,280
Avid Technology Inc.¹	1,127		55,798
BEA Systems Inc.¹	13,210		91,149
BMC Software Inc.¹	7,614		123,347
Borland Software Corp.¹	2,706		15,722
Cerner Corp.^1,2	910		52,835
Certegy Inc.	2,054		74,827
Citrix Systems Inc.¹	5,566		125,235
Computer Associates International Inc.²	15,757		423,863
Compuware Corp.¹	11,280		67,116
CSG Systems International Inc.¹	1,787		30,719
Dendrite International Inc.¹	1,337		20,617
Dun & Bradstreet Corp.¹	2,398		149,731
eFunds Corp.¹	1,645		35,960
Electronic Arts Inc.¹	10,086		538,492
Fair Isaac Corp.	2,288		75,229
FileNET Corp.^1,2	1,208		32,012


38		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	*Shares*	*Value*
First Data Corp.	28,813	$	1,095,758
Fiserv Inc.¹	6,593		278,884
Global Payments Inc.²	1,202		77,842
Hyperion Solutions Corp.^1,2	1,297		52,749
IDX Systems Corp.^1,2	617		19,108
IMS Health Inc.	7,870		188,723
Informatica Corp.¹	2,986		23,082
Inter-Tel Inc.	731		13,918
Intuit Inc.¹	5,860		236,158
JDA Software Group Inc.¹	1,091		11,172
Keane Inc.¹	1,952		23,229
Manugistics Group Inc.¹	1,967		3,226
Mercury Interactive Corp.¹	2,838		117,295
Micromuse Inc.¹	2,377		12,289
Microsoft Corp.	325,433		8,233,455
MRO Software Inc.¹	599		7,661
NAVTEQ Corp.¹	1,829		66,612
NDCHealth Corp.²	1,190		18,171
NetIQ Corp.¹	1,809		19,392
Novell Inc.¹	12,739		75,287
Oracle Corp.¹	133,753		1,546,185
Packeteer Inc.¹	1,047		12,229
Parametric Technology Corp.¹	9,296		49,455
Pixar Inc.¹	1,654		75,654
Quest Software Inc.¹	1,787		21,194
Red Hat Inc.^1,2	5,691		61,178
Safeguard Scientifics Inc.¹	3,907		5,079
SEI Investments Co.²	2,392		78,482
SERENA Software Inc.^1,2	954		18,155
Siebel Systems Inc.¹	15,259		137,331
Sybase Inc.¹	3,416		64,665
Take-Two Interactive Software Inc.¹	2,191		51,554
THQ Inc.^1,2	1,349		34,022
Total System Services Inc.	1,342		32,986
Veritas Software Corp.¹	14,588		300,367
Wind River Systems Inc.¹	2,414		31,334

			16,797,069

TELECOMMUNICATIONS – 5.42%
Adaptec Inc.¹	3,615		13,231
ADC Telecommunications Inc.¹	27,318		62,012
ADTRAN Inc.	1,500		31,095
Aeroflex Inc.¹	2,243		17,787
Alltel Corp.	10,433		594,264
Amdocs Ltd.¹	6,314		168,647
American Tower Corp. Class A¹	7,511		129,415
Anaren Inc.^1,2	767		7,463
Andrew Corp.¹	5,273		64,700
Arris Group Inc.^1,2	2,602		19,749
Aspect Communications Corp.¹	1,095		9,318
AT&T Corp.	26,565		508,188
Audiovox Corp. Class A^1,2	599		8,182
Avaya Inc.¹	14,117		122,536
BellSouth Corp.²	61,556		1,630,618
Black Box Corp.	615		20,000
C-COR Inc.^1,2	1,707		11,283
CenturyTel Inc.²	4,293		131,752
CIENA Corp.¹	18,968		43,626
Cincinnati Bell Inc.^1,2	8,398		33,592
Cisco Systems Inc.¹	221,214		3,822,578
Citizens Communications Co.	10,937		139,447
CommScope Inc.¹	1,608		22,705
Computer Network Technology Corp.¹	1,043		4,162
Comverse Technology Inc.¹	6,280		143,121
Corning Inc.¹	46,870		644,463
Crown Castle International Corp.¹	7,594		122,491
Extreme Networks Inc.¹	4,036		17,960
Finisar Corp.^1,2	4,952		6,240
Foundry Networks Inc.¹	3,769		31,660
Harmonic Inc.¹	2,089		11,510
Harris Corp.	4,560		128,592
IDT Corp.¹	895		12,047
IDT Corp. Class B^1,2	1,632		22,946
InterDigital Communications Corp.¹	1,803		29,497
JDS Uniphase Corp.¹	45,272		67,003
Juniper Networks Inc.¹	16,545		373,752
Level 3 Communications Inc.^1,2	21,008		38,024
Lucent Technologies Inc.¹	144,768		351,786
MCI Inc.	8,392		222,640
Motorola Inc.	79,230		1,215,388
MRV Communications Inc.^1,2	2,841		5,426
Newport Corp.¹	1,345		18,494
Nextel Communications Inc. Class A¹	36,374		1,018,108


SCHEDULES OF INVESTMENTS		39

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	*Shares*	*Value*
Nextel Partners Inc. Class A¹	1,295	$	30,458
NII Holdings Inc. Class B¹	1,975		98,888
NTL Inc.¹	2,361		151,057
Plantronics Inc.²	1,703		53,627
Polycom Inc.¹	3,422		52,220
Powerwave Technologies Inc.¹	3,045		21,985
QUALCOMM Inc.	55,214		1,926,416
Qwest Communications International Inc.¹	48,030		164,263
REMEC Inc.^1,2	2,120		10,494
RF Micro Devices Inc.^1,2	6,627		25,978
SBC Communications Inc.	111,435		2,652,153
Scientific-Atlanta Inc.	5,232		159,995
Sonus Networks Inc.¹	7,304		25,126
SpectraSite Inc.¹	1,512		84,869
Sprint Corp. (FON Group)	42,365		943,045
Stratex Networks Inc.¹	2,696		3,505
Sycamore Networks Inc.¹	6,602		22,183
Tekelec^1,2	2,070		28,173
Telephone & Data Systems Inc.	1,698		131,069
Telewest Global Inc.¹	8,009		148,487
Tellabs Inc.¹	14,471		112,295
3Com Corp.¹	12,920		40,698
Tollgrade Communications Inc.¹	451		3,184
United States Cellular Corp.¹	426		19,681
UTStarcom Inc.^1,2	3,508		33,361
Verizon Communications Inc.	93,043		3,330,939
Western Wireless Corp. Class A¹	2,607		102,168
Wireless Facilities Inc.¹	1,833		9,697

			22,483,512

TEXTILES – 0.08%
Cintas Corp.	4,633		178,787
G&K Services Inc. Class A	735		28,209
Mohawk Industries Inc.¹	1,792		139,436

			346,432

TOYS, GAMES & HOBBIES – 0.10%
Hasbro Inc.²	5,362		101,449
Jakks Pacific Inc.^1,2	758		14,243
Marvel Enterprises Inc.^1,2	2,692		52,763
Mattel Inc.	13,953		251,852

			420,307

TRANSPORTATION – 1.26%
Alexander & Baldwin Inc.	1,467		59,751
Arkansas Best Corp.	755		23,805
Burlington Northern Santa Fe Corp.	12,628		609,301
CH Robinson Worldwide Inc.	2,788		143,861
CNF Inc.	1,655		70,751
CSX Corp.	7,216		289,578
EGL Inc.¹	1,210		23,607
Expeditors International Washington Inc.	3,606		177,091
FedEx Corp.	9,466		804,137
General Maritime Corp.^1,2	1,210		53,059
Hunt (J.B.) Transport Services Inc.	2,176		85,060
Kansas City Southern Industries Inc.^1,2	2,230		42,192
Landstar System Inc.¹	2,056		63,016
Norfolk Southern Corp.	13,465		422,801
Offshore Logistics Inc.¹	771		22,336
OMI Corp.²	3,131		56,953
Overseas Shipholding Group Inc.	966		54,511
Ryder System Inc.	2,125		78,476
SCS Transportation Inc.¹	460		7,033
Swift Transportation Co. Inc.^1,2	1,630		34,768
Union Pacific Corp.	8,714		557,086
United Parcel Service Inc. Class B	19,357		1,380,348
USF Corp.²	909		38,751
Werner Enterprises Inc.²	2,048		38,052
Yellow Roadway Corp.¹	1,513		74,137

			5,210,461

TRUCKING & LEASING – 0.01%
GATX Corp.²	1,328		43,452

			43,452

WATER – 0.02%
Aqua America Inc.²	3,246		86,668

			86,668

TOTAL COMMON STOCKS (Cost: $364,085,587)			414,448,765


40		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	*Principal*		*Value*
SHORT-TERM INVESTMENTS – 7.29%

COMMERCIAL PAPER³ – 1.91%
Alpine Securitization Corp.
2.80%, 05/04/05	$	381,322	$	381,262
Amstel Funding Corp.
2.95%, 08/19/05		55,420		54,925
Amsterdam Funding Corp.
2.80% - 3.02%, 05/04/05 - 05/27/05		150,662		150,509
ANZ National Bank Ltd.
2.94%, 08/15/05		66,665		66,094
Blue Ridge Asset Funding Corp.
3.02%, 06/02/05		199,994		199,474
Bryant Park Funding LLC
2.75%, 05/03/05		26,666		26,664
Cancara Asset Securitisation LLC
2.80% - 2.97%, 05/03/05 - 05/23/05		442,185		442,073
Cantabric Finance LLC
3.04% - 3.12%, 06/28/05 - 07/25/05		166,662		165,574
Chariot Funding LLC
2.99%, 05/20/05		31,700		31,653
Charta LLC
2.99%, 06/16/05 - 06/21/05		279,991		278,885
Chesham Finance LLC
2.89% - 3.01%, 05/10/05 - 06/21/05		473,319		472,742
Corporate Asset Funding
2.75% - 2.99%, 05/05/05 - 06/16/05		246,659		246,066
CRC Funding LLC
2.95% - 3.00%, 05/02/05 - 06/29/05		233,326		232,950
DEPFA Bank PLC
2.28%, 05/03/05		66,665		66,660
Deutsche Bank Financial LLC
2.80%, 05/03/05		399,988		399,957
Edison Asset Securitization
2.26% - 3.12%, 05/03/05 - 09/06/05		453,319		452,184
Fairway Finance LLC
3.15%, 09/15/05		118,603		117,192
Falcon Asset Securitization Corp.
2.79% - 3.02%, 05/03/05 - 06/01/05		267,121		266,803
Ford Credit Auto Receivables
2.74%, 05/04/05		65,331		65,321
Fortis Funding LLC
2.35%, 05/09/05		186,661		186,576
Gemini Securitization Corp.
3.02%, 06/27/05		13,333		13,270
General Electric Capital Corp.
2.74%, 07/07/05		66,665		66,330
Georgetown Funding Co. LLC
2.81% - 3.05%, 05/03/05 - 06/16/05		293,324		292,925
Grampian Funding LLC
3.00% - 3.13%, 08/22/05 - 09/09/05		399,988		396,110
Jupiter Securization Corp.
2.99% - 3.02%, 05/19/05 - 06/03/05		538,223		537,149
Kitty Hawk Funding Corp.
2.88%, 05/04/05		100,684		100,667
Moat Funding LLC
2.74%, 05/02/05		93,330		93,330
Mortgage Interest Networking Trust
2.82% - 3.05%, 05/02/05 - 05/24/05		173,328		173,304
Nordea North America Inc.
2.74%, 07/11/05		66,665		66,309
Park Granada LLC
3.04%, 05/25/05 - 05/31/05		86,664		86,485
Ranger Funding Co. LLC
2.89% - 3.02%, 05/04/05 - 05/27/05		215,528		215,309
Santander Central Hispano
2.75%, 07/08/05		166,662		165,810
Scaldis Capital LLC
2.75% - 2.99%, 05/16/05 - 07/08/05		393,358		392,708


SCHEDULES OF INVESTMENTS		41

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	*Principal*		*Value*
Societe Generale
2.75% - 2.79%, 05/02/05 - 05/03/05	$	459,986	$	459,961
Sydney Capital Corp.
2.81%, 05/04/05		43,999		43,992
Tulip Funding Corp.
2.80% - 3.02%, 05/03/05 - 07/01/05		366,655		366,495
UBS Finance (Delaware)
2.79%, 05/04/05		106,663		106,647
Windmill Funding Corp.
2.80%, 05/04/05		41,199		41,192

				7,921,557

FLOATING RATE NOTES³ – 2.59%
Allstate Life Global Funding II
2.91%, 03/08/06⁴		61,331		61,333
American Express Centurion Bank
2.98% - 3.04%, 10/26/05 - 01/24/06		466,652		466,717
Bank of Nova Scotia
2.80% - 2.94%, 09/26/05 - 01/03/06		86,664		86,647
Beta Finance Inc.
2.81% - 3.16%, 05/04/05 - 04/25/06⁴		511,984		512,007
BMW US Capital LLC
2.92%, 04/18/06⁴		133,329		133,330
Canadian Imperial Bank of Commerce
2.86% - 3.00%, 09/13/05 - 12/14/05		453,319		453,254
CC USA Inc.
2.81% - 3.12%, 05/04/05 - 03/23/06⁴		346,656		346,644
Commodore CDO Ltd.
3.08%, 12/12/05		33,332		33,333
Den Danske Bank NY
2.85% - 2.96%, 08/12/05 - 10/17/05		399,988		399,945
DEPFA Bank PLC
2.99%, 03/15/06		133,329		133,330
Dorada Finance Inc.
3.00% - 3.12%, 07/29/05 - 03/27/06⁴		289,324		289,338
Fairway Finance LLC
2.94%, 06/20/05		66,665		66,664
Fifth Third Bancorp
2.98%, 02/23/06⁴		266,658		266,658
Five Finance Inc.
3.01%, 02/27/06⁴		66,665		66,672
General Electric Capital Corp.
3.01%, 05/09/06		59,998		60,071
General Electric Commercial Equipment Financing LLC
2.95%, 11/20/05		38,358		38,358
Greenwich Capital Holdings Inc.
2.83%, 09/02/05		86,664		86,664
Hartford Life Global Funding Trust
2.94%, 04/15/06		133,329		133,330
HBOS Treasury Services PLC
2.87% - 3.08%, 01/10/06 - 04/24/06		399,988		399,990
K2 USA LLC
2.87% - 3.11%, 06/10/05 - 02/15/06⁴		599,981		599,992
Leafs LLC
2.99%, 01/20/06 - 02/21/06⁴		139,996		139,996
Links Finance LLC
2.92% - 3.15%, 11/16/05 - 02/06/06⁴		279,991		280,097
Lothian Mortgages PLC
3.01%, 01/24/06⁴		199,994		199,994
Marshall & Ilsley Corp.
3.09%, 02/20/06		133,329		133,458
MetLife Global Funding I
2.86%, 05/05/06⁴		199,994		199,994
National City Bank (Ohio)
2.84% - 2.95%, 06/10/05 - 08/09/05		333,323		333,309
Nationwide Building Society
2.89% - 3.12%, 01/13/06 - 04/28/06⁴		493,318		493,405


42		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	*Principal*		*Value*
Norddeutsche Landesbank
3.11%, 07/27/05	$	133,329	$	133,318
Northern Rock PLC
2.88% - 2.99%, 10/25/05 - 02/03/06⁴		399,988		399,988
Permanent Financing PLC
2.87% - 2.89%, 06/10/05 - 03/10/06		473,319		473,319
Royal Bank of Scotland
2.79% - 2.91%, 06/20/05 - 04/05/06		180,994		180,938
Sedna Finance Inc.
2.92%, 01/10/06 - 01/17/06⁴		73,331		73,317
Sigma Finance Inc.
2.82% - 3.16%, 08/17/05 - 01/09/06⁴		679,979		679,998
Societe Generale
2.99%, 03/30/06		113,330		113,295
SunTrust Bank
3.17%, 04/28/06		199,994		199,994
Tango Finance Corp.
2.74% - 2.99%, 05/17/05 - 09/15/05⁴		361,322		361,312
Wachovia Asset Securitization Inc.
3.00% - 3.01%, 05/25/05		363,180		363,180
Wells Fargo & Co.
2.92%, 05/15/06⁴		66,665		66,673
WhistleJacket Capital LLC
2.86% - 2.97%, 06/15/05 - 01/17/06⁴		466,652		466,623
White Pine Finance LLC
2.80% - 3.09%, 05/20/05 - 01/13/06⁴		571,982		571,923
Windmill Funding Corp.
2.78%, 05/03/05		93,330		93,323
Winston Funding Ltd.
3.22%, 07/23/05⁴		95,197		95,197
World Savings Bank
2.86%, 09/09/05		46,665		46,664

				10,733,592

*Security*	Shares or Principal		*Value*
MONEY MARKET FUNDS – 0.30%
Barclays Global Investors Funds Government Money Market Fund, Institutional Shares^3,5		533,317	$	533,317
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares⁵		637,127		637,127
BlackRock Temp Cash Money Market Fund³		19,314		19,314
Short-Term Investment Co. - Prime Money Market Portfolio, Institutional Shares³		54,020		54,020

				1,243,778

REPURCHASE AGREEMENTS³ – 1.47%
Bank of America N.A. Repurchase Agreement, dated 4/29/05, due 5/2/05, with a maturity value of $3,334,055 and an effective yield of 2.97%.⁶	$	3,333,230		3,333,230
Goldman Sachs & Co. Repurchase Agreements, dated 4/29/05, due 5/2/05, with a total maturity value of $1,621,245 and effective yields of 2.96% - 3.00%.⁶		1,620,844		1,620,844
Merrill Lynch Government Securities Inc. Repurchase Agreements, dated 4/29/05, due 5/2/05, with a total maturity value of $1,132,041 and effective yields of 2.96% - 3.00%.⁶		1,131,761		1,131,761

				6,085,835

TIME DEPOSITS³ – 0.96%
American Express Centurion Bank
3.00%, 05/25/05		333,323		333,323
Banco Bilbao Vizcaya Argentaria SA
3.03% - 3.18%, 06/27/05 - 09/14/05		193,327		193,328
BNP Paribas (New York)
2.78% - 3.03%, 07/11/05 - 08/23/05		186,661		186,662


SCHEDULES OF INVESTMENTS		43

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	*Principal*		*Value*
Credit Suisse First Boston
2.75% - 2.81%, 05/03/05	$	173,328	$	173,329
Dexia Credit Local SA
2.81% - 3.01%, 05/04/05 - 06/21/05		259,992		259,994
First Tennessee Bank
3.00% - 3.04%, 06/14/05 - 06/27/05		233,326		233,327
HBOS Treasury Services PLC
3.39%, 12/14/05		79,998		79,998
Natexis Banques
2.98%, 08/18/05		133,329		133,330
Norddeutsche Landesbank
2.11%, 06/07/05		133,329		133,327
Societe Generale
2.81%, 05/03/05		93,330		93,330
SunTrust Bank
2.68%, 05/03/05		133,329		133,329
Svenska Handelsbanken AB
3.00%, 06/20/05		66,665		66,665
Toronto-Dominion Bank
1.77% - 3.18%, 05/10/05 - 11/09/05		406,654		406,644
UBS AG
2.67% - 3.40%, 11/09/05 - 12/15/05		106,663		106,662
Washington Mutual Bank
2.81% - 3.15%, 05/02/05 - 07/28/05		859,973		859,974
Wells Fargo Bank N.A.
3.04%, 06/29/05		399,988		399,988
World Savings Bank
2.75%, 05/03/05		186,661		186,661

				3,979,871

U.S. GOVERNMENT AGENCY NOTES³ – 0.06%
Federal Home Loan Mortgage Corp.
2.06%, 05/31/05		66,469		66,359
Federal National Mortgage Association
2.33%, 07/22/05		199,994		198,948

				265,307

TOTAL SHORT-TERM INVESTMENTS (Cost: $30,229,940)				30,229,940

TOTAL INVESTMENTS IN SECURITIES – 107.18% (Cost: $394,315,527)				444,678,705
Other Assets, Less Liabilities – (7.18%)				(29,776,829	)

NET ASSETS – 100.00%			$	414,901,876

NVS - Non-Voting Shares

¹	Non-income earning security.

²	All or a portion of this security represents a security on loan. See Note 5.

³	All or a portion of this security (these securities) represent(s) an investment of securities lending collateral. See Note 5.

⁴	All or a portion of this security is 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	The Fund’s investment adviser is an affiliate of the issuer. See Note 2.

⁶	Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 3.12% to 7.13% and maturity dates ranging from 5/25/05 to 8/1/42.

See notes to financial statements.


44		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

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

April 30, 2005


*Security*	*Shares*		*Value*
COMMON STOCKS – 99.99%

OIL & GAS – 85.23%
Amerada Hess Corp.¹		79,589	$	7,453,510
Anadarko Petroleum Corp.¹		206,509		15,083,417
Apache Corp.		268,282		15,101,594
Burlington Resources Inc.		413,986		20,123,860
Cabot Oil & Gas Corp.¹		44,313		1,304,575
Chesapeake Energy Corp.		41,919		806,522
ChevronTexaco Corp.		2,296,009		119,392,468
Cimarex Energy Co.^1,2		25,352		899,996
ConocoPhillips		353,119		37,024,527
Devon Energy Corp.¹		355,490		16,057,483
Diamond Offshore Drilling Inc.¹		65,101		2,871,605
ENSCO International Inc.		79,318		2,585,767
EOG Resources Inc.¹		225,629		10,728,659
Exxon Mobil Corp.		2,732,607		155,840,577
Forest Oil Corp.²		15,941		614,207
GlobalSantaFe Corp.¹		115,215		3,871,224
Helmerich & Payne Inc.¹		46,066		1,770,777
Kerr-McGee Corp.¹		114,654		8,897,150
Marathon Oil Corp.¹		246,237		11,467,257
Murphy Oil Corp.		152,303		13,568,674
Nabors Industries Ltd.²		115,506		6,222,308
Newfield Exploration Co.²		40,628		2,885,807
Noble Corp.		90,159		4,589,093
Noble Energy Inc.¹		55,655		3,568,599
Occidental Petroleum Corp.		457,229		31,548,801
Patterson-UTI Energy Inc.		4,910		117,693
Pioneer Natural Resources Co.		109,168		4,438,771
Rowan Companies Inc.		4,904		130,103
Stone Energy Corp.^1,2		18,478		830,401
Sunoco Inc.¹		49,220		4,885,577
Transocean Inc.²		229,781		10,654,945
Unocal Corp.		275,893		15,049,963
Valero Energy Corp.		117,311		8,039,323
Vintage Petroleum Inc.¹		32,965		952,359
XTO Energy Inc.		167,161		5,043,247

				544,420,839

OIL & GAS SERVICES – 12.23%
Baker Hughes Inc.		325,477		14,360,045
BJ Services Co.¹		112,863		5,502,071

*Security*	*Shares* or *Principal*		*Value*
Cooper Cameron Corp.^1,2		31,952	$	1,755,443
Global Industries Ltd.²		1,308		12,609
Grant Prideco Inc.^1,2		63,133		1,398,396
Halliburton Co.		295,837		12,303,861
Hanover Compressor Co.^1,2		42,572		441,472
Lone Star Technologies Inc.^1,2		19,035		741,223
National Oilwell Varco Inc.²		72,619		2,885,879
Schlumberger Ltd.		427,145		29,220,989
Seacor Holdings Inc.^1,2		5,818		331,684
Smith International Inc.¹		65,476		3,809,394
Tidewater Inc.¹		29,900		1,030,653
Veritas DGC Inc.^1,2		17,444		446,566
Weatherford International Ltd.^1,2		74,439		3,881,994

				78,122,279

PIPELINES – 2.53%
El Paso Corp.		124,804		1,246,792
Kinder Morgan Inc.¹		98,683		7,545,302
Williams Companies Inc.		431,130		7,337,833

				16,129,927

TOTAL COMMON STOCKS (Cost: $497,601,356)				638,673,045

SHORT-TERM INVESTMENTS – 7.88%

COMMERCIAL PAPER³ – 2.10%
Alpine Securitization Corp
2.80%, 05/04/05	$	645,148		645,048
Amstel Funding Corp.
2.95%, 08/19/05		93,763		92,926
Amsterdam Funding Corp.
2.80% - 3.02%, 05/04/05 - 05/27/05		254,901		254,643
ANZ National Bank Ltd.
2.94%, 08/15/05		112,788		111,823
Blue Ridge Asset Funding Corp.
3.02%, 06/02/05		338,364		337,484
Bryant Park Funding LLC
2.75%, 05/03/05		45,115		45,112


SCHEDULES OF INVESTMENTS		45

Schedule of Investments (Continued)

iSHARES^{^®}DOW JONES U.S. ENERGY SECTOR INDEX FUND

April 30, 2005


*Security*	*Principal*		*Value*
Cancara Asset Securitisation LLC
2.80% - 2.97%, 05/03/05 - 05/23/05	$	748,122	$	747,933
Cantabric Finance LLC
3.04% - 3.12%, 06/28/05 - 07/25/05		281,970		280,130
Chariot Funding LLC
2.99%, 05/20/05		53,633		53,553
Charta LLC
2.99%, 06/16/05 - 06/21/05		473,710		471,838
Chesham Finance LLC
2.89% - 3.01%, 05/10/05 - 06/21/05		800,796		799,821
Corporate Asset Funding
2.75% - 2.99%, 05/05/05 - 06/16/05		417,316		416,312
CRC Funding LLC
2.95% - 3.00%, 05/02/05 - 06/29/05		394,758		394,121
DEPFA Bank PLC
2.28%, 05/03/05		112,788		112,781
Deutsche Bank Financial LLC
2.80%, 05/03/05		676,729		676,676
Edison Asset Securitization
2.26% - 3.12%, 05/03/05 - 09/06/05		766,959		765,038
Fairway Finance LLC
3.15%, 09/15/05		200,661		198,274
Falcon Asset Securitization Corp.
2.79% - 3.02%, 05/03/05 - 06/01/05		451,935		451,396
Ford Credit Auto Receivables
2.74%, 05/04/05		110,532		110,516
Fortis Funding LLC
2.35%, 05/09/05		315,807		315,662
Gemini Securitization Corp.
3.02%, 06/27/05		22,558		22,452
General Electric Capital Corp.
2.74%, 07/07/05		112,788		112,222
Georgetown Funding Co. LLC
2.81% - 3.05%, 05/03/05 - 06/16/05		496,268		495,592
Grampian Funding LLC
3.00% - 3.13%, 08/22/05 - 09/09/05		676,729		670,169
Jupiter Securization Corp.
2.99% - 3.02%, 05/19/05 - 06/03/05		910,606		908,788
Kitty Hawk Funding Corp.
2.88%, 05/04/05		170,344		170,317
Moat Funding LLC
2.74%, 05/02/05		157,903		157,904
Mortgage Interest Networking Trust
2.82% - 3.05%, 05/02/05 - 05/24/05		293,249		293,208
Nordea North America Inc.
2.74%, 07/11/05		112,788		112,187
Park Granada LLC
3.04%, 05/25/05 - 05/31/05		146,625		146,323
Ranger Funding Co. LLC
2.89% - 3.02%, 05/04/05 - 05/27/05		364,646		364,277
Santander Central Hispano
2.75%, 07/08/05		281,970		280,530
Scaldis Capital LLC
2.75% - 2.99%, 05/16/05 - 07/08/05		665,513		664,412
Societe Generale
2.75% - 2.79%, 05/02/05 - 05/03/05		778,238		778,198
Sydney Capital Corp.
2.81%, 05/04/05		74,440		74,429
Tulip Funding Corp.
2.80% - 3.02%, 05/03/05 - 07/01/05		620,335		620,063
UBS Finance (Delaware)
2.79%, 05/04/05		180,461		180,433
Windmill Funding Corp.
2.80%, 05/04/05		69,703		69,692

				13,402,283

FLOATING RATE NOTES³ – 2.84%
Allstate Life Global Funding II
2.91%, 03/08/06⁴		103,765		103,768


46		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	*Principal*		*Value*
American Express Centurion Bank
2.98% - 3.04%, 10/26/05 - 01/24/06	$	789,517	$	789,626
Bank of Nova Scotia
2.80% - 2.94%, 09/26/05 - 01/03/06		146,625		146,596
Beta Finance Inc.
2.81% - 3.16%, 05/04/05 - 04/25/06⁴		866,213		866,254
BMW US Capital LLC
2.92%, 04/18/06⁴		225,576		225,576
Canadian Imperial Bank of Commerce
2.86% - 3.00%, 09/13/05 - 12/14/05		766,959		766,849
CC USA Inc.
2.81% - 3.12%, 05/04/05 - 03/23/06⁴		586,498		586,476
Commodore CDO Ltd.
3.08%, 12/12/05		56,394		56,394
Den Danske Bank NY
2.85% - 2.96%, 08/12/05 - 10/17/05		676,729		676,658
DEPFA Bank PLC
2.99%, 03/15/06		225,576		225,576
Dorada Finance Inc.
3.00% - 3.12%, 07/29/05 - 03/27/06⁴		489,501		489,524
Fairway Finance LLC
2.94%, 06/20/05		112,788		112,787
Fifth Third Bancorp
2.98%, 02/23/06⁴		451,153		451,153
Five Finance Inc.
3.01%, 02/27/06⁴		112,788		112,800
General Electric Capital Corp.
3.01%, 05/09/06		101,509		101,632
General Electric Commercial Equipment Financing LLC
2.95%, 11/20/05		64,897		64,897
Greenwich Capital Holdings Inc.
2.83%, 09/02/05		146,625		146,625
Hartford Life Global Funding Trust
2.94%, 04/15/06		225,576		225,576
HBOS Treasury Services PLC
2.87% - 3.08%, 01/10/06 - 04/24/06		676,729		676,728
K2 USA LLC
2.87% - 3.11%, 06/10/05 - 02/15/06⁴		1,015,093		1,015,105
Leafs LLC
2.99%, 01/20/06 - 02/21/06⁴		236,855		236,855
Links Finance LLC
2.92% - 3.15%, 11/16/05 - 02/06/06⁴		473,710		473,890
Lothian Mortgages PLC
3.01%, 01/24/06⁴		338,364		338,364
Marshall & Ilsley Corp.
3.09%, 02/20/06		225,576		225,794
MetLife Global Funding I
2.86%, 05/05/06⁴		338,364		338,364
National City Bank (Ohio)
2.84% - 2.95%, 06/10/05 - 08/09/05		563,941		563,917
Nationwide Building Society
2.89% - 3.12%, 01/13/06 - 04/28/06⁴		834,632		834,777
Norddeutsche Landesbank
3.11%, 07/27/05		225,576		225,558
Northern Rock PLC
2.88% - 2.99%, 10/25/05 - 02/03/06⁴		676,729		676,729
Permanent Financing PLC
2.87% - 2.89%, 06/10/05 - 03/10/06		800,796		800,795
Royal Bank of Scotland
2.79% - 2.91%, 06/20/05 - 04/05/06		306,220		306,124
Sedna Finance Inc.
2.92%, 01/10/06 - 01/17/06⁴		124,067		124,043
Sigma Finance Inc.
2.82% - 3.16%, 08/17/05 - 01/09/06⁴		1,150,439		1,150,474


SCHEDULES OF INVESTMENTS		47

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	*Shares or* *Principal*		*Value*
Societe Generale
2.99%, 03/30/06	$	191,740	$	191,681
SunTrust Bank
3.17%, 04/28/06		338,364		338,364
Tango Finance Corp.
2.74% - 2.99%, 05/17/05 - 09/15/05⁴		611,312		611,294
Wachovia Asset Securitization Inc.
3.00% - 3.01%, 05/25/05		614,454		614,454
Wells Fargo & Co.
2.92%, 05/15/06⁴		112,788		112,802
WhistleJacket Capital LLC
2.86% - 2.97%, 06/15/05 - 01/17/06⁴		789,517		789,468
White Pine Finance LLC
2.80% - 3.09%, 05/20/05 - 01/13/06⁴		967,722		967,658
Windmill Funding Corp.
2.78%, 05/03/05		157,903		157,892
Winston Funding Ltd.
3.22%, 07/23/05⁴		161,060		161,060
World Savings Bank
2.86%, 09/09/05		78,952		78,949

				18,159,906

MONEY MARKET FUNDS – 0.20%
Barclays Global Investors Funds Government Money Market Fund, Institutional Shares^3,5		902,305		902,305
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares⁵		272,286		272,286
BlackRock Temp Cash Money Market Fund³		32,676		32,676
Short-Term Investment Co. - Prime Money Market Portfolio, Institutional Shares³		91,394		91,394

				1,298,661

*Security*	*Principal*		*Value*
REPURCHASE AGREEMENTS³ – 1.61%
Bank of America N.A. Repurchase Agreement, dated 4/29/05, due 5/2/05, with a maturity value of $5,640,803 and an effective yield of 2.97%.⁶	$	5,639,407	$	5,639,407
Goldman Sachs & Co. Repurchase Agreements, dated 4/29/05, due 5/2/05, with a total maturity value of $2,742,941 and effective yields of 2.96% - 3.00%.⁶		2,742,263		2,742,263
Merrill Lynch Government Securities Inc. Repurchase Agreements, dated 4/29/05, due 5/2/05, with a total maturity value of $1,915,273 and effective yields of 2.96% - 3.00%.⁶		1,914,798		1,914,798

				10,296,468

TIME DEPOSITS³ – 1.06%
American Express Centurion Bank
3.00%, 05/25/05		563,941		563,941
Banco Bilbao Vizcaya Argentaria SA
3.03% - 3.18%, 06/27/05 - 09/14/05		327,086		327,085
BNP Paribas (New York)
2.78% - 3.03%, 07/11/05 - 08/23/05		315,807		315,807
Credit Suisse First Boston
2.75% - 2.81%, 05/03/05		293,249		293,249
Dexia Credit Local SA
2.81% - 3.01%, 05/04/05 - 06/21/05		439,874		439,875
First Tennessee Bank
3.00% - 3.04%, 06/14/05 - 06/27/05		394,758		394,758
HBOS Treasury Services PLC
3.39%, 12/14/05		135,346		135,346
Natexis Banques
2.98%, 08/18/05		225,576		225,576


48		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	*Principal*		*Value*
Norddeutsche Landesbank
2.11%, 06/07/05	$	225,576	$	225,572
Societe Generale
2.81%, 05/03/05		157,903		157,904
SunTrust Bank
2.68%, 05/03/05		225,576		225,576
Svenska Handelsbanken AB
3.00%, 06/20/05		112,788		112,788
Toronto-Dominion Bank
1.77% - 3.18%, 05/10/05 - 11/09/05		688,008		687,992
UBS AG
2.67% - 3.40%, 11/09/05 - 12/15/05		180,461		180,459
Washington Mutual Bank
2.81% - 3.15%, 05/02/05 - 07/28/05		1,454,967		1,454,967
Wells Fargo Bank N.A.
3.04%, 06/29/05		676,729		676,729
World Savings Bank
2.75%, 05/03/05		315,807		315,807

				6,733,431

U.S. GOVERNMENT AGENCY NOTES³ – 0.07%
Federal Home Loan Mortgage Corp.
2.06%, 05/31/05		112,457		112,270
Federal National Mortgage Association
2.33%, 07/22/05		338,364		336,594

				448,864

TOTAL SHORT-TERM INVESTMENTS (Cost: $50,339,613)				50,339,613

TOTAL INVESTMENTS IN SECURITIES – 107.87% (Cost: $547,940,969)				689,012,658
Other Assets, Less Liabilities – (7.87%)				(50,239,794	)

NET ASSETS – 100.00%			$	638,772,864

¹	All or a portion of this security represents a security on loan. See Note 5.

²	Non-income earning security.

³	All or a portion of this security (these securities) represent(s) an investment of securities lending collateral. See Note 5.

⁴	All or a portion of this security is 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	The Fund’s investment adviser is an affiliate of the issuer. See Note 2.

⁶	Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 3.12% to 7.13% and maturity dates ranging from 5/25/05 to 8/1/42.

See notes to financial statements.


SCHEDULES OF INVESTMENTS		49

Schedule of Investments

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

April 30, 2005


*Security*	*Shares*	*Value*
COMMON STOCKS – 99.91%

AGRICULTURE – 0.06%
Delta & Pine Land Co.¹	27,740	$	699,048

			699,048

BIOTECHNOLOGY – 10.90%
Affymetrix Inc.^1,2	43,572		2,009,105
Alexion Pharmaceuticals Inc.²	19,666		407,873
Amgen Inc.²	915,193		53,273,384
Applera Corp. - Celera Genomics Group^1,2	53,110		488,612
Biogen Idec Inc.²	243,832		8,836,472
Bio-Rad Laboratories Inc. Class A²	11,725		566,786
Celgene Corp.^1,2	118,198		4,480,886
Cell Genesys Inc.^1,2	32,455		151,240
Charles River Laboratories International Inc.^1,2	43,844		2,076,890
Chiron Corp.^1,2	78,795		2,690,849
CuraGen Corp.^1,2	29,470		91,357
Enzo Biochem Inc.^1,2	22,392		304,979
Enzon Pharmaceuticals Inc.²	31,834		246,713
Genentech Inc.²	335,122		23,773,555
Genzyme Corp.^1,2	164,307		9,630,033
Human Genome Sciences Inc.^1,2	93,881		970,730
ICOS Corp.^1,2	41,818		943,414
Immunomedics Inc.^1,2	28,313		61,156
Incyte Corp.^1,2	60,036		392,635
InterMune Inc.^1,2	20,235		218,538
Invitrogen Corp.^1,2	37,956		2,781,036
Lexicon Genetics Inc.^1,2	30,852		135,132
Maxygen Inc.²	19,286		144,838
MedImmune Inc.^1,2	179,245		4,547,446
Millennium Pharmaceuticals Inc.²	219,878		1,926,131
Millipore Corp.²	35,719		1,722,370
Myriad Genetics Inc.^1,2	22,226		359,172
Nektar Therapeutics²	60,241		859,037
Protein Design Labs Inc.^1,2	68,149		1,218,504
Regeneron Pharmaceuticals Inc.^1,2	27,593		153,417
Savient Pharmaceuticals Inc.^1,2	43,718		120,662
Telik Inc.^1,2	36,985		599,157
Transkaryotic Therapies Inc.^1,2	18,150		614,922
Vertex Pharmaceuticals Inc.^1,2	58,161		554,856
XOMA Ltd.^1,2	62,006		74,407

			127,426,294

COMMERCIAL SERVICES – 0.18%
Albany Molecular Research Inc.²	15,113		142,591
PAREXEL International Corp.^1,2	18,973		345,878
Pharmaceutical Product Development Inc.²	36,102		1,638,309

			2,126,778

DISTRIBUTION & WHOLESALE – 0.07%
Owens & Minor Inc.¹	28,345		822,288

			822,288

ELECTRONICS – 0.70%
Applera Corp. - Applied Biosystems Group	145,458		3,083,710
Fisher Scientific International Inc.²	82,818		4,917,733
Molecular Devices Corp.²	12,017		227,121

			8,228,564

HEALTH CARE - PRODUCTS – 30.07%
Advanced Medical Optics Inc.^1,2	25,682		949,720
Alcon Inc.^1,2	56,803		5,509,891
American Medical Systems Holdings Inc.²	45,612		796,386
ArthroCare Corp.^1,2	15,711		461,589
Bard (C.R.) Inc.	74,734		5,318,819
Bausch & Lomb Inc.¹	38,067		2,855,025
Baxter International Inc.	443,006		16,435,523
Beckman Coulter Inc.	44,165		2,946,247
Becton, Dickinson & Co.	171,340		10,026,817
Biomet Inc.	170,134		6,582,484
Biosite Inc.²	11,479		654,303
Boston Scientific Corp.²	434,611		12,855,793
Cooper Companies Inc.	31,653		2,138,160
Cyberonics Inc.²	15,190		572,511
Cytyc Corp.^1,2	80,058		1,706,036
Dade Behring Holdings Inc.²	31,282		1,929,161
Datascope Corp.	9,003		258,566
DENTSPLY International Inc.¹	51,413		2,810,235
Diagnostic Products Corp.¹	16,373		794,090
Edwards Lifesciences Corp.^1,2	43,019		1,894,557


50		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	*Shares*	*Value*
Gen-Probe Inc.²	35,732	$	1,793,389
Guidant Corp.¹	226,684		16,792,751
Haemonetics Corp.²	18,179		777,516
Henry Schein Inc.^1,2	62,352		2,338,824
Hillenbrand Industries Inc.¹	42,035		2,321,173
IDEXX Laboratories Inc.^1,2	24,271		1,377,137
Immucor Inc.^1,2	32,111		958,192
INAMED Corp.²	25,633		1,559,512
Intuitive Surgical Inc.²	24,102		1,034,940
Invacare Corp.¹	21,669		887,562
Johnson & Johnson	2,138,331		146,753,657
Medtronic Inc.	871,447		45,925,257
Mentor Corp.¹	26,766		982,312
Patterson Companies Inc.^1,2	83,940		4,243,167
PolyMedica Corp.¹	19,825		614,377
PSS World Medical Inc.^1,2	47,095		525,580
ResMed Inc.^1,2	24,400		1,515,240
Respironics Inc.^1,2	25,377		1,603,573
St. Jude Medical Inc.²	257,645		10,055,884
Steris Corp.^1,2	49,975		1,183,408
Stryker Corp.	199,817		9,701,115
Sybron Dental Specialties Inc.^1,2	28,031		1,044,155
TECHNE Corp.^1,2	28,194		1,177,945
Varian Medical Systems Inc.^1,2	98,584		3,326,224
Viasys Healthcare Inc.²	19,462		413,373
VISX Inc.²	35,666		850,277
Zimmer Holdings Inc.^1,2	175,815		14,314,857

			351,567,310

HEALTH CARE - SERVICES – 14.39%
Aetna Inc.	221,312		16,237,661
AMERIGROUP Corp.²	36,020		1,265,022
Apria Healthcare Group Inc.²	36,154		1,088,235
Beverly Enterprises Inc.²	72,109		845,117
Centene Corp.^1,2	29,347		817,314
Community Health Systems Inc.^1,2	62,793		2,288,805
Covance Inc.^1,2	45,156		2,060,920
Coventry Health Care Inc.²	76,348		5,224,494
DaVita Inc.²	71,564		2,884,029
HCA Inc.	287,956		16,079,463
Health Management Associates Inc. Class A¹	166,280		4,112,104
Health Net Inc.^1,2	80,714		2,746,697
Humana Inc.²	114,868		3,980,176
Laboratory Corp. of America Holdings²	97,292		4,815,954
LifePoint Hospitals Inc.²	35,878		1,594,793
Lincare Holdings Inc.²	72,015		3,073,600
Manor Care Inc.¹	63,031		2,102,084
OCA Inc.^1,2	34,378		139,575
Odyssey Healthcare Inc.^1,2	26,644		304,541
PacifiCare Health Systems Inc.^1,2	61,982		3,704,044
Pediatrix Medical Group Inc.^1,2	16,191		1,102,445
Quest Diagnostics Inc.	56,591		5,987,328
Renal Care Group Inc.^1,2	48,343		1,844,285
Sierra Health Services Inc.^1,2	17,337		1,121,531
Sunrise Senior Living Inc.²	12,930		662,533
Tenet Healthcare Corp.^1,2	334,910		4,008,873
Triad Hospitals Inc.^1,2	55,344		2,836,380
UnitedHealth Group Inc.	470,968		44,511,186
Universal Health Services Inc. Class B	39,249		2,226,988
WellChoice Inc.²	22,769		1,279,618
WellPoint Inc.²	213,749		27,306,435

			168,252,230

INSURANCE – 0.78%
CIGNA Corp.	99,094		9,114,666

			9,114,666

INTERNET – 0.03%
eResearch Technology Inc.^1,2	34,509		392,022

			392,022

PHARMACEUTICALS – 42.73%
Abbott Laboratories	1,122,181		55,166,418
Abgenix Inc.^1,2	56,803		395,917
Alkermes Inc.^1,2	64,652		727,335
Allergan Inc.¹	94,904		6,680,293
Alpharma Inc. Class A¹	29,676		280,141
American Pharmaceutical Partners Inc.^1,2	29,048		1,513,982
Amylin Pharmaceuticals Inc.^1,2	68,219		1,159,723
Barr Pharmaceuticals Inc.²	64,722		3,356,483
Bristol-Myers Squibb Co.¹	1,401,603		36,441,678
Caremark Rx Inc.²	327,527		13,117,456
Cell Therapeutics Inc.^1,2	41,925		161,411
Cephalon Inc.^1,2	40,869		1,794,149


SCHEDULES OF INVESTMENTS		51

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	*Shares*		*Value*
Cubist Pharmaceuticals Inc.^1,2		36,115	$	326,841
CV Therapeutics Inc.^1,2		22,942		454,710
Express Scripts Inc.²		47,255		4,235,938
Forest Laboratories Inc.²		266,787		9,518,960
Gilead Sciences Inc.²		310,266		11,510,869
Hospira Inc.²		112,470		3,773,369
ImClone Systems Inc.²		47,730		1,520,201
Impax Laboratories Inc.^1,2		35,676		580,449
IVAX Corp.^1,2		152,201		2,876,599
Kinetic Concepts Inc.^1,2		36,619		2,250,238
King Pharmaceuticals Inc.²		174,107		1,392,856
Ligand Pharmaceuticals Inc. Class B¹^,²		53,542		282,702
Lilly (Eli) & Co.		696,735		40,738,095
Medarex Inc.²		60,376		427,462
Medco Health Solutions Inc.^1,2		194,760		9,926,917
Medicines Co. (The)^1,2		32,282		689,221
Medicis Pharmaceutical Corp. Class A¹		40,545		1,139,315
Merck & Co. Inc.		1,597,867		54,167,691
MGI Pharma Inc.²		50,947		1,123,381
Mylan Laboratories Inc.		174,972		2,887,038
Nabi Biopharmaceuticals^1,2		42,434		462,531
Neurocrine Biosciences Inc.^1,2		26,255		917,875
Noven Pharmaceuticals Inc.^1,2		17,011		282,893
NPS Pharmaceuticals Inc.^1,2		28,113		341,573
Onyx Pharmaceuticals Inc.^1,2		23,914		738,703
OSI Pharmaceuticals Inc.^1,2		33,511		1,586,243
Par Pharmaceutical Companies Inc.^1,2		24,460		734,534
Perrigo Co.¹		44,796		820,663
Pfizer Inc.		5,426,375		147,434,608
Schering-Plough Corp.		1,060,903		22,141,046
Sepracor Inc.^1,2		75,742		4,538,461
Taro Pharmaceutical Industries Ltd.²		17,543		509,800
Trimeris Inc.^1,2		11,729		116,704
United Therapeutics Inc.^1,2		15,582		747,780
Valeant Pharmaceuticals International¹		65,715		1,363,586
Vicuron Pharmaceuticals Inc.^1,2		43,105		704,767
Watson Pharmaceuticals Inc.²		78,887		2,366,610

*Security*	Shares or Principal		*Value*
Wyeth		961,340	$	43,202,620

				499,628,835

TOTAL COMMON STOCKS (Cost: $1,142,417,936)				1,168,258,035

SHORT-TERM INVESTMENTS – 7.43%

COMMERCIAL PAPER³ – 1.97%
Alpine Securitization Corp.
2.80%, 05/04/05	$	1,108,386		1,108,213
Amstel Funding Corp.
2.95%, 08/19/05		161,088		159,649
Amsterdam Funding Corp.
2.80% - 3.02%, 05/04/05 - 05/27/05		437,929		437,484
ANZ National Bank Ltd.
2.94%, 08/15/05		193,774		192,115
Blue Ridge Asset Funding Corp.
3.02%, 06/02/05		581,321		579,809
Bryant Park Funding LLC
2.75%, 05/03/05		77,509		77,504
Cancara Asset Securitisation LLC
2.80% - 2.97%, 05/03/05 - 05/23/05		1,285,297		1,284,972
Cantabric Finance LLC
3.04% - 3.12%, 06/28/05 - 07/25/05		484,434		481,273
Chariot Funding LLC
2.99%, 05/20/05		92,143		92,006
Charta LLC
2.99%, 06/16/05 - 06/21/05		813,850		810,633
Chesham Finance LLC
2.89% - 3.01%, 05/10/05 - 06/21/05		1,375,793		1,374,119
Corporate Asset Funding
2.75% - 2.99%, 05/05/05 - 06/16/05		716,963		715,237
CRC Funding LLC
2.95% - 3.00%, 05/02/05 - 06/29/05		678,208		677,112
DEPFA Bank PLC
2.28%, 05/03/05		193,774		193,761


52		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	*Principal*		*Value*
Deutsche Bank Financial LLC
2.80%, 05/03/05	$	1,162,642	$	1,162,552
Edison Asset Securitization
2.26% - 3.12%, 05/03/05 - 09/06/05		1,317,661		1,314,360
Fairway Finance LLC
3.15%, 09/15/05		344,743		340,640
Falcon Asset Securitization Corp.
2.79% - 3.02%, 05/03/05 - 06/01/05		776,440		775,512
Ford Credit Auto Receivables
2.74%, 05/04/05		189,898		189,869
Fortis Funding LLC
2.35%, 05/09/05		542,566		542,319
Gemini Securitization Corp.
3.02%, 06/27/05		38,755		38,573
General Electric Capital Corp.
2.74%, 07/07/05		193,774		192,800
Georgetown Funding Co. LLC
2.81% - 3.05%, 05/03/05 - 06/16/05		852,604		851,444
Grampian Funding LLC
3.00% - 3.13%, 08/22/05 - 09/09/05		1,162,642		1,151,371
Jupiter Securization Corp.
2.99% - 3.02%, 05/19/05 - 06/03/05		1,564,452		1,561,327
Kitty Hawk Funding Corp.
2.88%, 05/04/05		292,656		292,610
Moat Funding LLC
2.74%, 05/02/05		271,283		271,283
Mortgage Interest Networking Trust
2.82% - 3.05%, 05/02/05 - 05/24/05		503,812		503,742
Nordea North America Inc.
2.74%, 07/11/05		193,774		192,741
Park Granada LLC
3.04%, 05/25/05 - 05/31/05		251,906		251,387
Ranger Funding Co. LLC
2.89% - 3.02%, 05/04/05 - 05/27/05		626,474		625,839
Santander Central Hispano
2.75%, 07/08/05		484,434		481,959
Scaldis Capital LLC
2.75% - 2.99%, 05/16/05 - 07/08/05		1,143,374		1,141,483
Societe Generale
2.75% - 2.79%, 05/02/05 - 05/03/05		1,337,039		1,336,967
Sydney Capital Corp.
2.81%, 05/04/05		127,891		127,871
Tulip Funding Corp.
2.80% - 3.02%, 05/03/05 - 07/01/05		1,065,756		1,065,288
UBS Finance (Delaware)
2.79%, 05/04/05		310,038		309,990
Windmill Funding Corp.
2.80%, 05/04/05		119,752		119,734

				23,025,548

FLOATING RATE NOTES³ – 2.67%
Allstate Life Global Funding II
2.91%, 03/08/06⁴		178,272		178,277
American Express Centurion Bank
2.98% - 3.04%, 10/26/05 - 01/24/06		1,356,416		1,356,605
Bank of Nova Scotia
2.80% - 2.94%, 09/26/05 - 01/03/06		251,906		251,857
Beta Finance Inc.
2.81% - 3.16%, 05/04/05 - 04/25/06⁴		1,488,182		1,488,251
BMW US Capital LLC
2.92%, 04/18/06⁴		387,547		387,547
Canadian Imperial Bank of Commerce
2.86% - 3.00%, 09/13/05 - 12/14/05		1,317,661		1,317,472
CC USA Inc.
2.81% - 3.12%, 05/04/05 - 03/23/06⁴		1,007,623		1,007,585
Commodore CDO Ltd.
3.08%, 12/12/05		96,887		96,887


SCHEDULES OF INVESTMENTS		53

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	*Principal*		*Value*
Den Danske Bank NY
2.85% - 2.96%, 08/12/05 - 10/17/05	$	1,162,642	$	1,162,520
DEPFA Bank PLC
2.99%, 03/15/06		387,547		387,547
Dorada Finance Inc.
3.00% - 3.12%, 07/29/05 - 03/27/06⁴		840,978		841,018
Fairway Finance LLC
2.94%, 06/20/05		193,774		193,771
Fifth Third Bancorp
2.98%, 02/23/06⁴		775,095		775,095
Five Finance Inc.
3.01%, 02/27/06⁴		193,774		193,795
General Electric Capital Corp.
3.01%, 05/09/06		174,396		174,607
General Electric Commercial Equipment Financing LLC
2.95%, 11/20/05		111,495		111,495
Greenwich Capital Holdings Inc.
2.83%, 09/02/05		251,906		251,906
Hartford Life Global Funding Trust
2.94%, 04/15/06		387,547		387,547
HBOS Treasury Services PLC
2.87% - 3.08%, 01/10/06 - 04/24/06		1,162,642		1,162,641
K2 USA LLC
2.87% - 3.11%, 06/10/05 - 02/15/06⁴		1,743,964		1,743,995
Leafs LLC
2.99%, 01/20/06 - 02/21/06⁴		406,925		406,925
Links Finance LLC
2.92% - 3.15%, 11/16/05 - 02/06/06⁴		813,850		814,158
Lothian Mortgages PLC
3.01%, 01/24/06⁴		581,321		581,322
Marshall & Ilsley Corp.
3.09%, 02/20/06		387,547		387,921
MetLife Global Funding I
2.86%, 05/05/06⁴		581,321		581,322
National City Bank (Ohio)
2.84% - 2.95%, 06/10/05 - 08/09/05		968,869		968,827
Nationwide Building Society
2.89% - 3.12%, 01/13/06 - 04/28/06⁴		1,433,926		1,434,175
Norddeutsche Landesbank
3.11%, 07/27/05		387,547		387,515
Northern Rock PLC
2.88% - 2.99%, 10/25/05 - 02/03/06⁴		1,162,642		1,162,642
Permanent Financing PLC
2.87% - 2.89%, 06/10/05 - 03/10/06		1,375,794		1,375,793
Royal Bank of Scotland
2.79% - 2.91%, 06/20/05 - 04/05/06		526,096		525,932
Sedna Finance Inc.
2.92%, 01/10/06 - 01/17/06⁴		213,151		213,110
Sigma Finance Inc.
2.82% - 3.16%, 08/17/05 - 01/09/06⁴		1,976,492		1,976,547
Societe Generale
2.99%, 03/30/06		329,415		329,315
SunTrust Bank
3.17%, 04/28/06		581,321		581,322
Tango Finance Corp.
2.74% - 2.99%, 05/17/05 - 09/15/05⁴		1,050,254		1,050,225
Wachovia Asset Securitization Inc.
3.00% - 3.01%, 05/25/05		1,055,653		1,055,654
Wells Fargo & Co.
2.92%, 05/15/06⁴		193,774		193,798
WhistleJacket Capital LLC
2.86% - 2.97%, 06/15/05 - 01/17/06⁴		1,356,416		1,356,330
White Pine Finance LLC
2.80% - 3.09%, 05/20/05 - 01/13/06⁴		1,662,579		1,662,468
Windmill Funding Corp.
2.78%, 05/03/05		271,283		271,262


54		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	*Shares or* *Principal*		*Value*
Winston Funding Ltd.
3.22%, 07/23/05⁴	$	276,709	$	276,709
World Savings Bank
2.86%, 09/09/05		135,642		135,638

				31,199,328

MONEY MARKET FUNDS – 0.22%
Barclays Global Investors Funds Government Money Market Fund, Institutional Shares^3,5		1,550,190		1,550,190
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares⁵		831,058		831,058
BlackRock Temp Cash Money Market Fund³		56,139		56,139
Short-Term Investment Co. - Prime Money Market Portfolio, Institutional Shares³		157,018		157,018

				2,594,405

REPURCHASE AGREEMENTS³ – 1.51%
Bank of America N.A. Repurchase Agreement, dated 4/29/05, due 5/2/05, with a maturity value of $9,691,085 and an effective yield of 2.97%.⁶	$	9,688,687		9,688,687
Goldman Sachs & Co. Repurchase Agreements, dated 4/29/05, due 5/2/05, with a total maturity value of $4,712,464 and effective yields of 2.96% - 3.00%.⁶		4,711,299		4,711,299
Merrill Lynch Government Securities Inc. Repurchase Agreements, dated 4/29/05, due 5/2/05, with a total maturity value of $3,290,500 and effective yields of 2.96% - 3.00%.⁶		3,289,685		3,289,685

				17,689,671

TIME DEPOSITS³ – 0.99%
American Express Centurion Bank
3.00%, 05/25/05		968,869		968,869
Banco Bilbao Vizcaya Argentaria SA
3.03% - 3.18%, 06/27/05 - 09/14/05		561,944		561,943

*Security*	*Principal*		*Value*
BNP Paribas (New York)
2.78% - 3.03%, 07/11/05 - 08/23/05	$	542,566	$	542,566
Credit Suisse First Boston
2.75% - 2.81%, 05/03/05		503,812		503,811
Dexia Credit Local SA
2.81% - 3.01%, 05/04/05 - 06/21/05		755,718		755,719
First Tennessee Bank
3.00% - 3.04%, 06/14/05 - 06/27/05		678,208		678,208
HBOS Treasury Services PLC
3.39%, 12/14/05		232,528		232,528
Natexis Banques
2.98%, 08/18/05		387,547		387,547
Norddeutsche Landesbank
2.11%, 06/07/05		387,547		387,540
Societe Generale
2.81%, 05/03/05		271,283		271,283
SunTrust Bank
2.68%, 05/03/05		387,547		387,546
Svenska Handelsbanken AB
3.00%, 06/20/05		193,774		193,774
Toronto-Dominion Bank
1.77% - 3.18%, 05/10/05 - 11/09/05		1,182,020		1,181,993
UBS AG
2.67% - 3.40%, 11/09/05 - 12/15/05		310,038		310,035
Washington Mutual Bank
2.81% - 3.15%, 05/02/05 - 07/28/05		2,499,681		2,499,683
Wells Fargo Bank N.A.
3.04%, 06/29/05		1,162,642		1,162,643
World Savings Bank
2.75%, 05/03/05		542,566		542,566

				11,568,254

U.S. GOVERNMENT AGENCY NOTES³ – 0.07%
Federal Home Loan Mortgage Corp.
2.06%, 05/31/05		193,204		192,883


SCHEDULES OF INVESTMENTS		55

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	*Principal*		*Value*
Federal National Mortgage Association
2.33%, 07/22/05	$	581,321	$	578,280

				771,163

TOTAL SHORT-TERM INVESTMENTS (Cost: $86,848,369)				86,848,369

TOTAL INVESTMENTS IN SECURITIES – 107.34% (Cost: $1,229,266,305)				1,255,106,404
Other Assets, Less Liabilities – (7.34%)				(85,823,623	)

NET ASSETS – 100.00%			$	1,169,282,781

¹	All or a portion of this security represents a security on loan. See Note 5.

²	Non-income earning security.

³	All or a portion of this security (these securities) represent(s) an investment of securities lending collateral. See Note 5.

⁴	All or a portion of this security is 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	The Fund’s investment adviser is an affiliate of the issuer. See Note 2.

⁶	Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 3.12% to 7.13% and maturity dates ranging from 5/25/05 to 8/1/42.

See notes to financial statements.


56		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

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

April 30, 2005


*Security*	*Shares*	*Value*
COMMON STOCKS – 99.95%

CHEMICALS – 0.04%
Cabot Microelectronics Corp.^1,2	5,854	$	168,537

			168,537

COMMERCIAL SERVICES – 0.06%
BearingPoint Inc.^1,2	40,119		248,337

			248,337

COMPUTERS – 26.57%
Advanced Digital Information Corp.¹	14,993		103,602
Agilysys Inc.	7,490		99,018
Apple Computer Inc.¹	192,741		6,950,240
Brocade Communications Systems Inc.¹	62,013		270,377
CACI International Inc. Class A¹	6,853		425,708
Cadence Design Systems Inc.¹	64,611		904,554
CIBER Inc.^1,2	13,397		104,229
Cognizant Technology Solutions Corp.¹	31,442		1,320,878
Computer Sciences Corp.¹	44,178		1,920,859
Dell Inc.¹	516,485		17,989,173
Diebold Inc.²	16,948		819,775
DST Systems Inc.^1,2	15,836		718,954
Electronic Data Systems Corp.	119,918		2,320,413
Electronics For Imaging Inc.¹	12,655		207,795
EMC Corp.¹	570,761		7,488,384
Gateway Inc.^1,2	54,771		186,769
Henry (Jack) & Associates Inc.²	18,045		310,194
Hewlett-Packard Co.	686,013		14,042,686
Hutchinson Technology Inc.^1,2	6,108		226,240
Imation Corp.	8,348		291,095
InFocus Corp.¹	9,199		33,116
Intergraph Corp.^1,2	7,762		229,522
International Business Machines Corp.	392,782		30,000,689
Iomega Corp.^1,2	12,539		36,614
Kronos Inc.^1,2	7,314		285,612
Lexmark International Inc.^1,2	30,512		2,119,058
Maxtor Corp.¹	58,918		285,752
McDATA Corp. Class A^1,2	19,683		60,624
Mentor Graphics Corp.^1,2	17,927		160,267
Mercury Computer Systems Inc.^1,2	4,966		130,755
MICROS Systems Inc.^1,2	8,987		356,335
M-Systems Flash Disk Pioneers Ltd.¹	7,652		145,005
National Instruments Corp.²	12,419		267,505
NCR Corp.¹	44,047		1,453,551
Network Appliance Inc.^1,2	84,302		2,244,962
PalmOne Inc.^1,2	9,897		212,093
Perot Systems Corp. Class A¹	17,737		224,018
Quantum Corp.^1,2	42,003		100,807
RadiSys Corp.^1,2	4,643		65,002
Reynolds & Reynolds Co. (The) Class A²	15,250		402,142
SanDisk Corp.^1,2	38,284		907,331
Seagate Technology	49,779		875,115
Silicon Graphics Inc.^1,2	58,889		45,933
Silicon Storage Technology Inc.^1,2	19,896		52,128
Storage Technology Corp.^1,2	26,403		734,003
Sun Microsystems Inc.¹	783,866		2,845,434
SunGard Data Systems Inc.¹	67,938		2,269,129
Synopsys Inc.¹	34,458		566,489
Unisys Corp.¹	78,375		508,654
Western Digital Corp.¹	48,452		614,856

			104,933,444

DISTRIBUTION & WHOLESALE – 0.34%
Ingram Micro Inc. Class A^1,2	29,617		493,419
Tech Data Corp.^1,2	13,705		500,644
United Stationers Inc.¹	7,905		333,433

			1,327,496

ELECTRICAL COMPONENTS & EQUIPMENT – 0.27%
American Power Conversion Corp.	44,372		1,076,465

			1,076,465

ELECTRONICS – 0.05%
Cymer Inc.^1,2	8,632		213,987

			213,987

ENGINEERING & CONSTRUCTION – 0.07%
Dycom Industries Inc.^1,2	11,475		266,908

			266,908

ENTERTAINMENT – 0.06%
Macrovision Corp.^1,2	11,690		239,060

			239,060


SCHEDULES OF INVESTMENTS		57

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	*Shares*	*Value*
INTERNET – 6.79%
Agile Software Corp.¹	11,709	$	76,928
Akamai Technologies Inc.^1,2	27,975		330,385
Ariba Inc.¹	15,761		95,196
Ask Jeeves Inc.¹	13,466		366,141
Avocent Corp.¹	11,665		293,258
Check Point Software Technologies Ltd.¹	42,546		891,339
Digital River Inc.^1,2	7,700		204,820
E.piphany Inc.^1,2	17,974		55,180
EarthLink Inc.^1,2	34,329		315,140
Entrust Inc.¹	12,015		45,417
F5 Networks Inc.¹	7,718		330,408
Google Inc. Class A¹	27,080		5,957,600
InfoSpace Inc.^1,2	6,873		212,994
Internet Security Systems Inc.¹	10,239		199,149
Interwoven Inc.¹	8,660		66,855
Keynote Systems Inc.¹	4,004		43,844
Macromedia Inc.¹	17,447		691,076
MatrixOne Inc.¹	12,131		51,799
McAfee Inc.¹	36,925		772,102
Openwave Systems Inc.^1,2	15,193		203,434
PC-Tel Inc.^1,2	4,937		35,744
RealNetworks Inc.^1,2	26,483		163,135
RSA Security Inc.¹	16,519		177,414
S1 Corp.¹	15,491		81,792
SonicWALL Inc.¹	16,507		84,846
Symantec Corp.¹	167,239		3,140,748
TIBCO Software Inc.¹	40,585		289,777
United Online Inc.¹	14,708		129,283
VeriSign Inc.¹	60,422		1,598,766
Verity Inc.¹	8,548		70,094
Vignette Corp.¹	69,712		81,563
WatchGuard Technologies Inc.¹	7,989		25,884
webMethods Inc.¹	12,576		58,730
Websense Inc.^1,2	5,526		293,154
Yahoo! Inc.¹	272,144		9,391,689

			26,825,684

MACHINERY – 0.27%
Presstek Inc.^1,2	6,717		50,042
Unova Inc.^1,2	11,281		200,351
Zebra Technologies Corp. Class A^1,2	16,961		810,057

			1,060,450

OFFICE & BUSINESS EQUIPMENT – 1.46%
IKON Office Solutions Inc.	27,720		239,778
Imagistics International Inc.^1,2	3,908		104,930
Pitney Bowes Inc.	54,451		2,435,049
Xerox Corp.¹	224,746		2,977,885

			5,757,642

PHARMACEUTICALS – 0.01%
Accelrys Inc.^1,2	5,703		29,485

			29,485

RETAIL – 0.05%
Insight Enterprises Inc.^1,2	11,474		207,679

			207,679

SEMICONDUCTORS – 22.68%
Actel Corp.¹	6,058		84,994
Advanced Micro Devices Inc.¹	83,935		1,194,395
Agere Systems Inc. Class A¹	189,450		221,657
Agere Systems Inc. Class B¹	214,204		252,761
Altera Corp.^1,2	87,924		1,822,665
Amkor Technology Inc.¹	21,672		70,001
Analog Devices Inc.	88,084		3,004,545
Applied Materials Inc.¹	399,599		5,942,037
Applied Micro Circuits Corp.^1,2	73,504		196,256
Asyst Technologies Inc.¹	11,141		36,542
Atmel Corp.¹	104,504		241,404
ATMI Inc.^1,2	7,416		169,938
Axcelis Technologies Inc.^1,2	23,565		146,339
Broadcom Corp. Class A¹	61,683		1,844,939
Brooks Automation Inc.¹	10,498		135,004
Cirrus Logic Inc.¹	18,015		76,023
Cohu Inc.	4,725		84,341
Conexant Systems Inc.¹	111,072		124,401
Credence Systems Corp.^1,2	21,349		134,285
Cree Inc.^1,2	17,297		418,414
Cypress Semiconductor Corp.^1,2	29,653		355,539
DSP Group Inc.^1,2	6,649		160,241
Emulex Corp.^1,2	19,573		303,969
ESS Technology Inc.¹	8,138		31,250
Exar Corp.¹	9,739		123,588


58		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	*Shares*	*Value*
Fairchild Semiconductor International Inc. Class A^1,2	28,267	$	380,191
Freescale Semiconductor Inc. Class A^1,2	30,710		574,891
Freescale Semiconductor Inc. Class B¹	63,945		1,206,003
Helix Technology Corp.²	6,304		75,932
Integrated Circuit Systems Inc.¹	17,273		315,578
Integrated Device Technology Inc.¹	24,928		266,730
Intel Corp.	1,491,908		35,089,676
International Rectifier Corp.^1,2	15,729		669,112
Intersil Corp. Class A	35,682		623,008
KLA-Tencor Corp.²	46,296		1,806,470
Kopin Corp.^1,2	17,117		52,549
Kulicke & Soffa Industries Inc.^1,2	12,159		62,132
Lam Research Corp.^1,2	31,680		812,592
Lattice Semiconductor Corp.¹	24,832		113,234
Linear Technology Corp.	72,911		2,605,839
LSI Logic Corp.^1,2	91,151		488,569
LTX Corp.¹	14,165		54,394
Marvell Technology Group Ltd.^1,2	46,106		1,543,629
Maxim Integrated Products Inc.	76,840		2,873,816
Micrel Inc.¹	15,977		150,184
Microchip Technology Inc.	48,678		1,386,349
Micron Technology Inc.¹	144,842		1,406,416
Mindspeed Technologies Inc.^1,2	24,104		32,781
Mykrolis Corp.¹	9,956		126,939
National Semiconductor Corp.	84,851		1,618,957
Novellus Systems Inc.²	33,753		790,833
NVIDIA Corp.^1,2	36,973		811,188
OmniVision Technologies Inc.^1,2	13,285		185,990
Photronics Inc.^1,2	7,049		112,079
PMC-Sierra Inc.^1,2	42,204		340,164
Power Integrations Inc.^1,2	7,263		157,970
QLogic Corp.^1,2	22,402		744,642
Rambus Inc.^1,2	22,740		323,363
Semtech Corp.^1,2	17,596		297,196
Silicon Image Inc.¹	17,854		179,790
Silicon Laboratories Inc.^1,2	9,593		243,662
Siliconix Inc.¹	1,475		48,631
Skyworks Solutions Inc.¹	36,826		192,968
Teradyne Inc.^1,2	45,871		505,498
Texas Instruments Inc.	408,326		10,191,817
Transmeta Corp.^1,2	42,763		29,506
TriQuint Semiconductor Inc.^1,2	32,018		94,773
Ultratech Inc.^1,2	5,140		81,829
Varian Semiconductor Equipment Associates Inc.¹	8,609		321,030
Vitesse Semiconductor Corp.¹	51,849		107,846
Xilinx Inc.²	81,767		2,202,803
Zoran Corp.¹	10,186		107,768

			89,582,845

SOFTWARE – 23.02%
Actuate Corp.¹	13,808		26,235
Adobe Systems Inc.	56,248		3,345,069
Advent Software Inc.^1,2	6,318		112,713
Ascential Software Corp.¹	13,814		255,145
Autodesk Inc.	54,437		1,732,730
BEA Systems Inc.¹	91,194		629,239
BMC Software Inc.¹	52,721		854,080
Borland Software Corp.^1,2	19,009		110,442
Cerner Corp.^1,2	6,689		388,363
Citrix Systems Inc.¹	39,979		899,528
Computer Associates International Inc.²	110,168		2,963,519
Compuware Corp.¹	81,548		485,211
CSG Systems International Inc.¹	11,514		197,926
Dendrite International Inc.^1,2	9,028		139,212
Fair Isaac Corp.²	15,878		522,069
FileNET Corp.¹	9,320		246,980
Hyperion Solutions Corp.¹	9,235		375,587
IDX Systems Corp.^1,2	5,029		155,748
Informatica Corp.^1,2	20,334		157,182
Inter-Tel Inc.	4,758		90,592
Intuit Inc.¹	41,552		1,674,546
JDA Software Group Inc.¹	6,942		71,086
Keane Inc.¹	12,928		153,843
Manugistics Group Inc.¹	15,402		25,259
Mercury Interactive Corp.¹	19,936		823,955
Micromuse Inc.¹	18,642		96,379
Microsoft Corp.	2,283,356		57,768,907
MRO Software Inc.¹	4,778		61,111


SCHEDULES OF INVESTMENTS		59

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	*Shares*		*Value*
NDCHealth Corp.²		8,591	$	131,185
NetIQ Corp.¹		12,835		137,591
Novell Inc.¹		88,778		524,678
Oracle Corp.¹		940,781		10,875,428
Packeteer Inc.¹		7,750		90,520
Parametric Technology Corp.¹		63,479		337,708
Quest Software Inc.^1,2		12,149		144,087
Red Hat Inc.^1,2		41,180		442,685
SERENA Software Inc.^1,2		7,035		133,876
Siebel Systems Inc.¹		107,060		963,540
Sybase Inc.^1,2		22,722		430,127
Veritas Software Corp.¹		101,960		2,099,356
Wind River Systems Inc.¹		18,421		239,105

				90,912,542

TELECOMMUNICATIONS – 18.21%
Adaptec Inc.^1,2		25,980		95,087
ADC Telecommunications Inc.¹		190,958		433,475
ADTRAN Inc.		10,032		207,963
Amdocs Ltd.¹		44,040		1,176,308
American Tower Corp. Class A^1,2		53,053		914,103
Andrew Corp.^1,2		35,367		433,953
Arris Group Inc.^1,2		19,794		150,236
Aspect Communications Corp.¹		9,739		82,879
Audiovox Corp. Class A¹		4,454		60,842
Avaya Inc.¹		98,413		854,225
C-COR Inc.^1,2		11,432		75,566
CIENA Corp.¹		133,843		307,839
Cisco Systems Inc.¹		1,553,621		26,846,571
Computer Network Technology Corp.¹		6,373		25,428
Comverse Technology Inc.¹		43,260		985,895
Corning Inc.^1,2		328,523		4,517,191
Crown Castle International Corp.¹		53,271		859,261
Extreme Networks Inc.¹		25,925		115,366
Finisar Corp.^1,2		42,575		53,645
Foundry Networks Inc.¹		27,875		234,150
Harmonic Inc.^1,2		16,909		93,169
Harris Corp.		31,453		886,975
InterDigital Communications Corp.^1,2		12,892		210,913
JDS Uniphase Corp.¹		325,511		481,756
Juniper Networks Inc.^1,2		116,338		2,628,075

*Security*	*Shares or* *Principal*		*Value*
Lucent Technologies Inc.^1,2		1,015,360	$	2,467,325
Motorola Inc.		557,834		8,557,174
MRV Communications Inc.^1,2		24,482		46,761
Plantronics Inc.²		11,350		357,412
Polycom Inc.¹		23,457		357,954
QUALCOMM Inc.		388,250		13,546,043
REMEC Inc.^1,2		14,932		73,913
RF Micro Devices Inc.^1,2		44,406		174,072
Scientific-Atlanta Inc.		36,061		1,102,745
Sonus Networks Inc.¹		58,560		201,446
SpectraSite Inc.^1,2		10,766		604,296
Stratex Networks Inc.¹		19,805		25,747
Sycamore Networks Inc.^1,2		43,125		144,900
Tekelec^1,2		14,871		202,394
Tellabs Inc.^1,2		100,085		776,660
3Com Corp.¹		93,149		293,419
UTStarcom Inc.^1,2		23,396		222,496
Wireless Facilities Inc.¹		11,386		60,232

				71,945,860

TOTAL COMMON STOCKS (Cost: $445,023,436)				394,796,421

SHORT-TERM INVESTMENTS – 7.46%

COMMERCIAL PAPER³ – 1.97%
Alpine Securitization Corp.
2.80%, 05/04/05	$	374,973		374,915
Amstel Funding Corp.
2.95%, 08/19/05		54,497		54,010
Amsterdam Funding Corp.
2.80% - 3.02%, 05/04/05 - 05/27/05		148,154		148,003
ANZ National Bank Ltd.
2.94%, 08/15/05		65,555		64,994
Blue Ridge Asset Funding Corp.
3.02%, 06/02/05		196,664		196,153
Bryant Park Funding LLC
2.75%, 05/03/05		26,222		26,220
Cancara Asset Securitisation LLC
2.80% - 2.97%, 05/03/05 - 05/23/05		434,823		434,714


60		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	*Principal*		*Value*
Cantabric Finance LLC
3.04% - 3.12%, 06/28/05 - 07/25/05	$	163,887	$	162,817
Chariot Funding LLC
2.99%, 05/20/05		31,173		31,127
Charta LLC
2.99%, 06/16/05 - 06/21/05		275,330		274,242
Chesham Finance LLC
2.89% - 3.01%, 05/10/05 - 06/21/05		465,439		464,873
Corporate Asset Funding
2.75% - 2.99%, 05/05/05 - 06/16/05		242,553		241,969
CRC Funding LLC
2.95% - 3.00%, 05/02/05 - 06/29/05		229,442		229,071
DEPFA Bank PLC
2.28%, 05/03/05		65,555		65,551
Deutsche Bank Financial LLC
2.80%, 05/03/05		393,329		393,298
Edison Asset Securitization
2.26% - 3.12%, 05/03/05 - 09/06/05		445,772		444,655
Fairway Finance LLC
3.15%, 09/15/05		116,628		115,241
Falcon Asset Securitization Corp.
2.79% - 3.02%, 05/03/05 - 06/01/05		262,674		262,360
Ford Credit Auto Receivables
2.74%, 05/04/05		64,244		64,234
Fortis Funding LLC
2.35%, 05/09/05		183,553		183,469
Gemini Securitization Corp.
3.02%, 06/27/05		13,111		13,049
General Electric Capital Corp.
2.74%, 07/07/05		65,555		65,225
Georgetown Funding Co. LLC
2.81% - 3.05%, 05/03/05 - 06/16/05		288,441		288,048
Grampian Funding LLC
3.00% - 3.13%, 08/22/05 - 09/09/05		393,329		389,515
Jupiter Securization Corp.
2.99% - 3.02%, 05/19/05 - 06/03/05		529,263		528,207
Kitty Hawk Funding Corp.
2.88%, 05/04/05		99,007		98,992
Moat Funding LLC
2.74%, 05/02/05		91,777		91,777
Mortgage Interest Networking Trust
2.82% - 3.05%, 05/02/05 - 05/24/05		170,442		170,418
Nordea North America Inc.
2.74%, 07/11/05		65,555		65,206
Park Granada LLC
3.04%, 05/25/05 - 05/31/05		85,221		85,045
Ranger Funding Co. LLC
2.89% - 3.02%, 05/04/05 - 05/27/05		211,940		211,725
Santander Central Hispano
2.75%, 07/08/05		163,887		163,050
Scaldis Capital LLC
2.75% - 2.99%, 05/16/05 - 07/08/05		386,810		386,169
Societe Generale
2.75% - 2.79%, 05/02/05 - 05/03/05		452,328		452,304
Sydney Capital Corp.
2.81%, 05/04/05		43,266		43,259
Tulip Funding Corp.
2.80% - 3.02%, 05/03/05 - 07/01/05		360,551		360,394
UBS Finance (Delaware)
2.79%, 05/04/05		104,888		104,871
Windmill Funding Corp.
2.80%, 05/04/05		40,513		40,507

				7,789,677

FLOATING RATE NOTES³ – 2.67%
Allstate Life Global Funding II
2.91%, 03/08/06⁴		60,310		60,312
American Express Centurion Bank
2.98% - 3.04%, 10/26/05 - 01/24/06		458,883		458,948


SCHEDULES OF INVESTMENTS		61

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	*Principal*		*Value*
Bank of Nova Scotia
2.80% - 2.94%, 09/26/05 - 01/03/06	$	85,221	$	85,205
Beta Finance Inc.
2.81% - 3.16%, 05/04/05 - 04/25/06⁴		503,461		503,485
BMW US Capital LLC
2.92%, 04/18/06⁴		131,110		131,110
Canadian Imperial Bank of Commerce
2.86% - 3.00%, 09/13/05 - 12/14/05		445,772		445,709
CC USA Inc.
2.81% - 3.12%, 05/04/05 - 03/23/06⁴		340,885		340,872
Commodore CDO Ltd.
3.08%, 12/12/05		32,777		32,777
Den Danske Bank NY
2.85% - 2.96%, 08/12/05 - 10/17/05		393,329		393,288
DEPFA Bank PLC
2.99%, 03/15/06		131,110		131,110
Dorada Finance Inc.
3.00% - 3.12%, 07/29/05 - 03/27/06⁴		284,508		284,521
Fairway Finance LLC
2.94%, 06/20/05		65,555		65,554
Fifth Third Bancorp
2.98%, 02/23/06⁴		262,219		262,219
Five Finance Inc.
3.01%, 02/27/06⁴		65,555		65,562
General Electric Capital Corp.
3.01%, 05/09/06		58,999		59,071
General Electric Commercial Equipment Financing LLC
2.95%, 11/20/05		37,719		37,719
Greenwich Capital Holdings Inc.
2.83%, 09/02/05		85,221		85,221
Hartford Life Global Funding Trust
2.94%, 04/15/06		131,110		131,110
HBOS Treasury Services PLC
2.87% - 3.08%, 01/10/06 - 04/24/06		393,329		393,330
K2 USA LLC
2.87% - 3.11%, 06/10/05 - 02/15/06⁴		589,993		590,004
Leafs LLC
2.99%, 01/20/06 - 02/21/06⁴		137,665		137,665
Links Finance LLC
2.92% - 3.15%, 11/16/05 - 02/06/06⁴		275,330		275,435
Lothian Mortgages PLC
3.01%, 01/24/06⁴		196,664		196,665
Marshall & Ilsley Corp.
3.09%, 02/20/06		131,110		131,236
MetLife Global Funding I
2.86%, 05/05/06⁴		196,664		196,665
National City Bank (Ohio)
2.84% - 2.95%, 06/10/05 - 08/09/05		327,774		327,760
Nationwide Building Society
2.89% - 3.12%, 01/13/06 - 04/28/06⁴		485,105		485,190
Norddeutsche Landesbank
3.11%, 07/27/05		131,110		131,099
Northern Rock PLC
2.88% - 2.99%, 10/25/05 - 02/03/06⁴		393,329		393,329
Permanent Financing PLC
2.87% - 2.89%, 06/10/05 - 03/10/06		465,439		465,439
Royal Bank of Scotland
2.79% - 2.91%, 06/20/05 - 04/05/06		177,981		177,926
Sedna Finance Inc.
2.92%, 01/10/06 - 01/17/06⁴		72,110		72,096
Sigma Finance Inc.
2.82% - 3.16%, 08/17/05 - 01/09/06⁴		668,659		668,654
Societe Generale
2.99%, 03/30/06		111,443		111,409


62		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	Shares or Principal		*Value*
SunTrust Bank
3.17%, 04/28/06	$	196,664	$	196,665
Tango Finance Corp.
2.74% - 2.99%, 05/17/05 - 09/15/05⁴		355,307		355,298
Wachovia Asset Securitization Inc.
3.00% - 3.01%, 05/25/05		357,133		357,134
Wells Fargo & Co.
2.92%, 05/15/06⁴		65,555		65,563
WhistleJacket Capital LLC
2.86% - 2.97%, 06/15/05 - 01/17/06⁴		458,883		458,854
White Pine Finance LLC
2.80% - 3.09%, 05/20/05 - 01/13/06⁴		562,460		562,424
Windmill Funding Corp.
2.78%, 05/03/05		91,777		91,770
Winston Funding Ltd.
3.22%, 07/23/05⁴		93,612		93,613
World Savings Bank
2.86%, 09/09/05		45,888		45,888

				10,554,904

MONEY MARKET FUNDS – 0.25%
Barclays Global Investors Funds Government Money Market Fund, Institutional Shares^3,5		524,438		524,438
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares⁵		382,793		382,793
BlackRock Temp Cash Money Market Fund³		18,992		18,992
Short-Term Investment Co. - Prime Money Market Portfolio, Institutional Shares³		53,120		53,120

				979,343

REPURCHASE AGREEMENTS³ – 1.51%
Bank of America N.A. Repurchase Agreement, dated 4/29/05, due 5/2/05, with a maturity value of $3,278,549 and an effective yield of 2.97%.⁶	$	3,277,738		3,277,738

*Security*	*Principal*		*Value*
Goldman Sachs & Co. Repurchase Agreements, dated 4/29/05, due 5/2/05, with a total maturity value of $1,594,253 and effective yields of 2.96% - 3.00%.⁶	$	1,593,859	$	1,593,859
Merrill Lynch Government Securities Inc. Repurchase Agreements, dated 4/29/05, due 5/2/05, with a total maturity value of $1,113,195 and effective yields of 2.96% - 3.00%.⁶		1,112,919		1,112,919

				5,984,516

TIME DEPOSITS³ – 0.99%
American Express Centurion Bank
3.00%, 05/25/05		327,774		327,774
Banco Bilbao Vizcaya Argentaria SA
3.03% - 3.18%, 06/27/05 - 09/14/05		190,109		190,109
BNP Paribas (New York)
2.78% - 3.03%, 07/11/05 - 08/23/05		183,553		183,554
Credit Suisse First Boston
2.75% - 2.81%, 05/03/05		170,442		170,443
Dexia Credit Local SA
2.81% - 3.01%, 05/04/05 - 06/21/05		255,664		255,665
First Tennessee Bank
3.00% - 3.04%, 06/14/05 - 06/27/05		229,442		229,442
HBOS Treasury Services PLC
3.39%, 12/14/05		78,666		78,666
Natexis Banques
2.98%, 08/18/05		131,110		131,110
Norddeutsche Landesbank
2.11%, 06/07/05		131,110		131,107
Societe Generale
2.81%, 05/03/05		91,777		91,777
SunTrust Bank
2.68%, 05/03/05		131,110		131,109
Svenska Handelsbanken AB
3.00%, 06/20/05		65,555		65,555


SCHEDULES OF INVESTMENTS		63

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	*Principal*		*Value*
Toronto-Dominion Bank
1.77% - 3.18%, 05/10/05 - 11/09/05	$	399,884	$	399,876
UBS AG
2.67% - 3.40%, 11/09/05 - 12/15/05		104,888		104,887
Washington Mutual Bank
2.81% - 3.15%, 05/02/05 - 07/28/05		845,656		845,658
Wells Fargo Bank N.A.
3.04%, 06/29/05		393,329		393,329
World Savings Bank
2.75%, 05/03/05		183,553		183,553

				3,913,614

U.S. GOVERNMENT AGENCY NOTES³ – 0.07%
Federal Home Loan Mortgage Corp.
2.06%, 05/31/05		65,362		65,254
Federal National Mortgage Association
2.33%, 07/22/05		196,664		195,636

				260,890

TOTAL SHORT-TERM INVESTMENTS (Cost: $29,482,944)				29,482,944

TOTAL INVESTMENTS IN SECURITIES – 107.41% (Cost: $474,506,380)				424,279,365
Other Assets, Less Liabilities – (7.41%)				(29,274,442	)

NET ASSETS – 100.00%			$	395,004,923

¹	Non-income earning security.

²	All or a portion of this security represents a security on loan. See Note 5.

³	All or a portion of this security (these securities) represent(s) an investment of securities lending collateral. See Note 5.

⁴	All or a portion of this security is 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	The Fund’s investment adviser is an affiliate of the issuer. See Note 2.

⁶	Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 3.12% to 7.13% and maturity dates ranging from 5/25/05 to 8/1/42.

See notes to financial statements.


64		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

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

April 30, 2005


*Security*	Shares or Principal		*Value*
COMMON STOCKS – 99.76%

HOLDING COMPANIES-DIVERSIFIED – 1.20%
Leucadia National Corp.¹		107,963	$	3,754,953

				3,754,953

TELECOMMUNICATIONS – 98.56%
Alltel Corp. ¹		268,089		15,270,349
AT&T Corp.		774,095		14,808,437
BCE Inc.¹		573,546		13,799,517
BellSouth Corp.		770,695		20,415,711
CenturyTel Inc.¹		357,088		10,959,031
Cincinnati Bell Inc.^1,2		569,187		2,276,748
Citizens Communications Co.¹		550,611		7,020,290
IDT Corp.²		51,450		692,517
IDT Corp. Class B^1,2		184,833		2,598,752
Level 3 Communications Inc.^1,2		343,962		622,571
MCI Inc.		333,919		8,858,871
Nextel Communications Inc. Class A²		525,310		14,703,427
Nextel Partners Inc. Class A^1,2		140,542		3,305,548
NII Holdings Inc. Class B^1,2		83,510		4,181,346
NTL Inc.²		63,444		4,059,147
Qwest Communications International Inc.^1,2		1,479,944		5,061,408
SBC Communications Inc.		2,404,859		57,235,644
Sprint Corp. (FON Group)		663,095		14,760,495
Telephone & Data Systems Inc.		148,217		11,440,870
United States Cellular Corp.^1,2		148,770		6,873,174
Verizon Communications Inc.		1,924,902		68,911,492
Vodafone Group PLC ADR		469,185		12,264,496
Western Wireless Corp. Class A²		214,817		8,418,678
Wireless Facilities Inc.^1,2		62,348		329,821

				308,868,340

TOTAL COMMON STOCKS (Cost: $321,770,246)				312,623,293

SHORT-TERM INVESTMENTS – 8.01%

COMMERCIAL PAPER³ – 2.12%
Alpine Securitization Corp.
2.80%, 05/04/05	$	319,412		319,363
Amstel Funding Corp.
2.95%, 08/19/05		46,422		46,007

*Security*	*Principal*		*Value*
Amsterdam Funding Corp.
2.80% - 3.02%, 05/04/05 - 05/27/05	$	126,201	$	126,074
ANZ National Bank Ltd.
2.94%, 08/15/05		55,841		55,363
Blue Ridge Asset Funding Corp.
3.02%, 06/02/05		167,524		167,088
Bryant Park Funding LLC
2.75%, 05/03/05		22,337		22,335
Cancara Asset Securitisation LLC
2.80% - 2.97%, 05/03/05 - 05/23/05		370,394		370,301
Cantabric Finance LLC
3.04% - 3.12%, 06/28/05 - 07/25/05		139,603		138,691
Chariot Funding LLC
2.99%, 05/20/05		26,554		26,514
Charta LLC
2.99%, 06/16/05 - 06/21/05		234,534		233,607
Chesham Finance LLC
2.89% - 3.01%, 05/10/05 - 06/21/05		396,473		395,991
Corporate Asset Funding
2.75% - 2.99%, 05/05/05 - 06/16/05		206,613		206,116
CRC Funding LLC
2.95% - 3.00%, 05/02/05 - 06/29/05		195,445		195,129
DEPFA Bank PLC
2.28%, 05/03/05		55,841		55,838
Deutsche Bank Financial LLC
2.80%, 05/03/05		335,048		335,022
Edison Asset Securitization
2.26% - 3.12%, 05/03/05 - 09/06/05		379,721		378,770
Fairway Finance LLC
3.15%, 09/15/05		99,347		98,165
Falcon Asset Securitization Corp.
2.79% - 3.02%, 05/03/05 - 06/01/05		223,753		223,486


SCHEDULES OF INVESTMENTS		65

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	*Principal*		*Value*
Ford Credit Auto Receivables
2.74%, 05/04/05	$	54,724	$	54,716
Fortis Funding LLC
2.35%, 05/09/05		156,356		156,284
Gemini Securitization Corp.
3.02%, 06/27/05		11,168		11,116
General Electric Capital Corp.
2.74%, 07/07/05		55,841		55,561
Georgetown Funding Co. LLC
2.81% - 3.05%, 05/03/05 - 06/16/05		245,702		245,367
Grampian Funding LLC
3.00% - 3.13%, 08/22/05 - 09/09/05		335,048		331,800
Jupiter Securization Corp.
2.99% - 3.02%, 05/19/05 - 06/03/05		450,840		449,940
Kitty Hawk Funding Corp.
2.88%, 05/04/05		84,337		84,324
Moat Funding LLC
2.74%, 05/02/05		78,178		78,178
Mortgage Interest Networking Trust
2.82% - 3.05%, 05/02/05 - 05/24/05		145,187		145,167
Nordea North America Inc.
2.74%, 07/11/05		55,841		55,544
Park Granada LLC
3.04%, 05/25/05 - 05/31/05		72,594		72,444
Ranger Funding Co. LLC
2.89% - 3.02%, 05/04/05 - 05/27/05		180,536		180,353
Santander Central Hispano
2.75%, 07/08/05		139,603		138,890
Scaldis Capital LLC
2.75% - 2.99%, 05/16/05 - 07/08/05		329,495		328,949
Societe Generale
2.75% - 2.79%, 05/02/05 - 05/03/05		385,305		385,285
Sydney Capital Corp.
2.81%, 05/04/05		36,855		36,850
Tulip Funding Corp.
2.80% - 3.02%, 05/03/05 - 07/01/05		307,127		306,993
UBS Finance (Delaware)
2.79%, 05/04/05		89,346		89,332
Windmill Funding Corp.
2.80%, 05/04/05		34,510		34,505

				6,635,458

FLOATING RATE NOTES³ – 2.87%
Allstate Life Global Funding II
2.91%, 03/08/06⁴		51,374		51,375
American Express Centurion Bank
2.98% - 3.04%, 10/26/05 - 01/24/06		390,889		390,943
Bank of Nova Scotia
2.80% - 2.94%, 09/26/05 - 01/03/06		72,594		72,580
Beta Finance Inc.
2.81% - 3.16%, 05/04/05 - 04/25/06⁴		428,861		428,882
BMW US Capital LLC
2.92%, 04/18/06⁴		111,683		111,683
Canadian Imperial Bank of Commerce
2.86% - 3.00%, 09/13/05 - 12/14/05		379,721		379,667
CC USA Inc.
2.81% - 3.12%, 05/04/05 - 03/23/06⁴		290,375		290,365
Commodore CDO Ltd.
3.08%, 12/12/05		27,921		27,921
Den Danske Bank NY
2.85% - 2.96%, 08/12/05 - 10/17/05		335,048		335,012
DEPFA Bank PLC
2.99%, 03/15/06		111,683		111,683
Dorada Finance Inc.
3.00% - 3.12%, 07/29/05 - 03/27/06⁴		242,351		242,363
Fairway Finance LLC
2.94%, 06/20/05		55,841		55,841


66		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	*Principal*		*Value*
Fifth Third Bancorp
2.98%, 02/23/06⁴	$	223,365	$	223,365
Five Finance Inc.
3.01%, 02/27/06⁴		55,841		55,847
General Electric Capital Corp.
3.01%, 05/09/06		50,257		50,318
General Electric Commercial Equipment Financing LLC
2.95%, 11/20/05		32,130		32,130
Greenwich Capital Holdings Inc.
2.83%, 09/02/05		72,594		72,594
Hartford Life Global Funding Trust
2.94%, 04/15/06		111,683		111,683
HBOS Treasury Services PLC
2.87% - 3.08%, 01/10/06 - 04/24/06		335,048		335,049
K2 USA LLC
2.87% - 3.11%, 06/10/05 - 02/15/06⁴		502,572		502,582
Leafs LLC
2.99%, 01/20/06 - 02/21/06⁴		117,267		117,267
Links Finance LLC
2.92% - 3.15%, 11/16/05 - 02/06/06⁴		234,534		234,622
Lothian Mortgages PLC
3.01%, 01/24/06⁴		167,524		167,524
Marshall & Ilsley Corp.
3.09%, 02/20/06		111,683		111,790
MetLife Global Funding I
2.86%, 05/05/06⁴		167,524		167,524
National City Bank (Ohio)
2.84% - 2.95%, 06/10/05 - 08/09/05		279,207		279,195
Nationwide Building Society
2.89% - 3.12%, 01/13/06 - 04/28/06⁴		413,226		413,299
Norddeutsche Landesbank
3.11%, 07/27/05		111,683		111,673
Northern Rock PLC
2.88% - 2.99%, 10/25/05 - 02/03/06⁴		335,048		335,048

*Security*	Shares or Principal		*Value*
Permanent Financing PLC
2.87% - 2.89%, 06/10/05 - 03/10/06	$	396,473	$	396,473
Royal Bank of Scotland
2.79% - 2.91%, 06/20/05 - 04/05/06		151,609		151,562
Sedna Finance Inc.
2.92%, 01/10/06 - 01/17/06⁴		61,425		61,415
Sigma Finance Inc.
2.82% - 3.16%, 08/17/05 - 01/09/06⁴		569,581		569,583
Societe Generale
2.99%, 03/30/06		94,930		94,901
SunTrust Bank
3.17%, 04/28/06		167,524		167,524
Tango Finance Corp.
2.74% - 2.99%, 05/17/05 - 09/15/05⁴		302,660		302,651
Wachovia Asset Securitization Inc.
3.00% - 3.01%, 05/25/05		304,216		304,216
Wells Fargo & Co.
2.92%, 05/15/06⁴		55,841		55,848
WhistleJacket Capital LLC
2.86% - 2.97%, 06/15/05 - 01/17/06⁴		390,889		390,866
White Pine Finance LLC
2.80% - 3.09%, 05/20/05 - 01/13/06⁴		479,118		479,087
Windmill Funding Corp.
2.78%, 05/03/05		78,178		78,172
Winston Funding Ltd.
3.22%, 07/23/05⁴		79,741		79,741
World Savings Bank
2.86%, 09/09/05		39,089		39,088

				8,990,952

MONEY MARKET FUNDS – 0.27%
Barclays Global Investors Funds Government Money Market Fund, Institutional Shares^3,5		446,731		446,731


SCHEDULES OF INVESTMENTS		67

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	Shares or Principal		*Value*
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares⁵		330,162	$	330,162
BlackRock Temp Cash Money Market Fund³		16,178		16,178
Short-Term Investment Co. - Prime Money Market Portfolio, Institutional Shares³		45,249		45,249

				838,320

REPURCHASE AGREEMENTS³ – 1.62%
Bank of America N.A. Repurchase Agreement, dated 4/29/05, due 5/2/05, with a maturity value of $2,792,756 and an effective yield of 2.97%.⁶	$	2,792,065		2,792,065
Goldman Sachs & Co. Repurchase Agreements, dated 4/29/05, due 5/2/05, with a total maturity value of $1,358,028 and effective yields of 2.96% - 3.00%.⁶		1,357,692		1,357,692
Merrill Lynch Government Securities Inc. Repurchase Agreements, dated 4/29/05, due 5/2/05, with a total maturity value of $948,249 and effective yields of 2.96% - 3.00%.⁶		948,014		948,014

				5,097,771

TIME DEPOSITS³ – 1.06%
American Express Centurion Bank
3.00%, 05/25/05		279,207		279,207
Banco Bilbao Vizcaya Argentaria SA
3.03% - 3.18%, 06/27/05 - 09/14/05		161,940		161,940
BNP Paribas (New York)
2.78% - 3.03%, 07/11/05 - 08/23/05		156,356		156,356
Credit Suisse First Boston
2.75% - 2.81%, 05/03/05		145,187		145,188
Dexia Credit Local SA
2.81% - 3.01%, 05/04/05 - 06/21/05		217,781		217,783

*Security*	*Principal*		*Value*
First Tennessee Bank
3.00% - 3.04%, 06/14/05 - 06/27/05	$	195,445	$	195,445
HBOS Treasury Services PLC
3.39%, 12/14/05		67,010		67,010
Natexis Banques
2.98%, 08/18/05		111,683		111,683
Norddeutsche Landesbank
2.11%, 06/07/05		111,683		111,680
Societe Generale
2.81%, 05/03/05		78,178		78,178
SunTrust Bank
2.68%, 05/03/05		111,683		111,682
Svenska Handelsbanken AB
3.00%, 06/20/05		55,841		55,841
Toronto-Dominion Bank
1.77% - 3.18%, 05/10/05 - 11/09/05		340,632		340,624
UBS AG
2.67% - 3.40%, 11/09/05 - 12/15/05		89,346		89,345
Washington Mutual Bank
2.81% - 3.15%, 05/02/05 - 07/28/05		720,353		720,353
Wells Fargo Bank N.A.
3.04%, 06/29/05		335,048		335,048
World Savings Bank
2.75%, 05/03/05		156,356		156,356

				3,333,719

U.S. GOVERNMENT AGENCY NOTES³ – 0.07%
Federal Home Loan Mortgage Corp.
2.06%, 05/31/05		55,677		55,585
Federal National Mortgage Association
2.33%, 07/22/05		167,524		166,648

				222,233

TOTAL SHORT-TERM INVESTMENTS (Cost: $25,118,453)				25,118,453

TOTAL INVESTMENTS IN SECURITIES – 107.77% (Cost: $346,888,699)				337,741,746
Other Assets, Less Liabilities – (7.77%)				(24,363,691	)

NET ASSETS – 100.00%			$	313,378,055


68		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

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

April 30, 2005

ADR - American Depositary Receipts

¹	All or a portion of this security represents a security on loan. See Note 5.

²	Non-income earning security.

³	All or a portion of this security (these securities) represent(s) an investment of securities lending collateral. See Note 5.

⁴	All or a portion of this security is 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	The Fund’s investment adviser is an affiliate of the issuer. See Note 2.

⁶	Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 3.12% to 7.13% and maturity dates ranging from 5/25/05 to 8/1/42.

See notes to financial statements.


SCHEDULES OF INVESTMENTS		69

Schedule of Investments

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

April 30, 2005


*Security*	*Shares*	*Value*
COMMON STOCKS – 99.85%

ELECTRIC – 88.18%
AES Corp. (The)¹	941,507	$	15,139,433
Allegheny Energy Inc.^1,2	199,248		4,869,621
ALLETE Inc.	38,203		1,591,919
Alliant Energy Corp.	168,556		4,439,765
Ameren Corp.	281,926		14,575,574
American Electric Power Co. Inc.²	574,431		20,231,460
Aquila Inc.^1,2	343,143		1,180,412
Avista Corp.	70,479		1,183,342
Black Hills Corp.²	47,257		1,619,970
Calpine Corp.^1,2	647,362		1,158,778
CenterPoint Energy Inc.²	394,105		4,666,203
Cinergy Corp.²	253,243		10,028,423
Cleco Corp.²	71,894		1,468,075
CMS Energy Corp.¹	304,950		3,939,954
Consolidated Edison Inc.²	352,003		15,234,690
Constellation Energy Group Inc.	254,630		13,383,353
Dominion Resources Inc.	494,209		37,263,359
DPL Inc.	174,154		4,430,478
DTE Energy Co.	251,966		11,577,838
Duke Energy Corp.²	1,286,147		37,542,631
Duquesne Light Holdings Inc.²	110,803		1,949,025
Edison International	434,268		15,763,928
El Paso Electric Co.¹	69,282		1,351,692
Energy East Corp.	212,818		5,537,524
Entergy Corp.	329,262		24,134,905
Exelon Corp.	961,368		47,587,716
FirstEnergy Corp.	478,626		20,829,804
FPL Group Inc.	494,430		20,182,633
Great Plains Energy Inc.²	107,826		3,297,319
Hawaiian Electric Industries Inc.²	116,705		2,952,636
IDACORP Inc.²	60,669		1,636,850
NiSource Inc.	392,520		9,122,165
Northeast Utilities²	186,179		3,408,937
NRG Energy Inc.^1,2	121,944		3,792,458
NSTAR	76,945		4,165,802
Pepco Holdings Inc.	269,335		5,836,489
PG&E Corp.²	575,345		19,975,978
Pinnacle West Capital Corp.	132,467		5,550,367
PNM Resources Inc.²	79,378		2,194,802
PPL Corp.	274,137		14,874,674
Progress Energy Inc.	358,136		15,038,131
Public Service Enterprise Group Inc.	345,873		20,095,221
Puget Energy Inc.	144,455		3,097,115
Reliant Energy Inc.^1,2	432,807		4,401,647
SCANA Corp.	146,360		5,684,622
Sierra Pacific Resources Corp.^1,2	169,742		1,836,608
Southern Co. (The)	1,077,874		35,515,948
TECO Energy Inc.²	289,684		4,811,651
TXU Corp.	422,541		36,249,792
UniSource Energy Corp.	46,742		1,460,688
Westar Energy Inc.	123,746		2,833,783
Wisconsin Energy Corp.	170,605		6,015,532
WPS Resources Corp.²	53,909		2,842,622
Xcel Energy Inc.	579,887		9,962,459

			569,516,801

GAS – 8.76%
AGL Resources Inc.	105,957		3,666,112
Atmos Energy Corp.²	110,730		2,912,199
Energen Corp.	47,589		2,948,139
KeySpan Corp.	232,323		8,812,011
New Jersey Resources Corp.²	40,023		1,735,397
Nicor Inc.²	63,757		2,357,096
Northwest Natural Gas Co.²	39,749		1,411,090
ONEOK Inc.²	139,667		4,030,790
Peoples Energy Corp.	54,450		2,156,220
Piedmont Natural Gas Co.²	104,149		2,390,220
Sempra Energy	295,599		11,936,288
Southern Union Co.¹	143,857		3,443,937
UGI Corp.	73,711		3,702,504
Vectren Corp.²	110,313		2,979,554
WGL Holdings Inc.²	70,389		2,133,491

			56,615,048

PIPELINES – 2.34%
Equitable Resources Inc.	85,100		4,905,164
National Fuel Gas Co.²	113,479		3,090,033
Questar Corp.	121,831		7,114,930

			15,110,127


70		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	*Shares or* *Principal*		*Value*
WATER – 0.57%
Aqua America Inc.		137,864	$	3,680,969

				3,680,969

TOTAL COMMON STOCKS (Cost: $517,651,718)				644,922,945

SHORT-TERM INVESTMENTS – 12.00%

COMMERCIAL PAPER³ – 3.18%
Alpine Securitization Corp.
2.80%, 05/04/05	$	990,549		990,395
Amstel Funding Corp.
2.95%, 08/19/05		143,962		142,676
Amsterdam Funding Corp.
2.80% - 3.02%, 05/04/05 - 05/27/05		391,371		390,974
ANZ National Bank Ltd.
2.94%, 08/15/05		173,173		171,690
Blue Ridge Asset Funding Corp.
3.02%, 06/02/05		519,519		518,168
Bryant Park Funding LLC
2.75%, 05/03/05		69,269		69,264
Cancara Asset Securitisation LLC
2.80% - 2.97%, 05/03/05 - 05/23/05		1,148,652		1,148,362
Cantabric Finance LLC
3.04% - 3.12%, 06/28/05 - 07/25/05		432,932		430,106
Chariot Funding LLC
2.99%, 05/20/05		82,347		82,224
Charta LLC
2.99%, 06/16/05 - 06/21/05		727,326		724,451
Chesham Finance LLC
2.89% - 3.01%, 05/10/05 - 06/21/05		1,229,527		1,228,031
Corporate Asset Funding
2.75% - 2.99%, 05/05/05 - 06/16/05		640,740		639,198
CRC Funding LLC
2.95% - 3.00%, 05/02/05 - 06/29/05		606,105		605,126

*Security*	*Principal*		*Value*
DEPFA Bank PLC
2.28%, 05/03/05	$	173,173	$	173,162
Deutsche Bank Financial LLC
2.80%, 05/03/05		1,039,037		1,038,956
Edison Asset Securitization
2.26% - 3.12%, 05/03/05 - 09/06/05		1,177,575		1,174,625
Fairway Finance LLC
3.15%, 09/15/05		308,092		304,426
Falcon Asset Securitization Corp.
2.79% - 3.02%, 05/03/05 - 06/01/05		693,893		693,065
Ford Credit Auto Receivables
2.74%, 05/04/05		169,709		169,684
Fortis Funding LLC
2.35%, 05/09/05		484,884		484,663
Gemini Securitization Corp.
3.02%, 06/27/05		34,635		34,472
General Electric Capital Corp.
2.74%, 07/07/05		173,173		172,303
Georgetown Funding Co. LLC
2.81% - 3.05%, 05/03/05 - 06/16/05		761,961		760,923
Grampian Funding LLC
3.00% - 3.13%, 08/22/05 - 09/09/05		1,039,037		1,028,964
Jupiter Securization Corp.
2.99% - 3.02%, 05/19/05 - 06/03/05		1,398,128		1,395,335
Kitty Hawk Funding Corp.
2.88%, 05/04/05		261,543		261,502
Moat Funding LLC
2.74%, 05/02/05		242,442		242,442
Mortgage Interest Networking Trust
2.82% - 3.05%, 05/02/05 - 05/24/05		450,249		450,187
Nordea North America Inc.
2.74%, 07/11/05		173,173		172,250
Park Granada LLC
3.04%, 05/25/05 - 05/31/05		225,125		224,662


SCHEDULES OF INVESTMENTS		71

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	*Principal*		*Value*
Ranger Funding Co. LLC
2.89% - 3.02%, 05/04/05 - 05/27/05	$	559,871	$	559,304
Santander Central Hispano
2.75%, 07/08/05		432,932		430,720
Scaldis Capital LLC
2.75% - 2.99%, 05/16/05 - 07/08/05		1,021,817		1,020,126
Societe Generale
2.75% - 2.79%, 05/02/05 - 05/03/05		1,194,893		1,194,828
Sydney Capital Corp.
2.81%, 05/04/05		114,294		114,276
Tulip Funding Corp.
2.80% - 3.02%, 05/03/05 - 07/01/05		952,451		952,032
UBS Finance (Delaware)
2.79%, 05/04/05		277,077		277,034
Windmill Funding Corp.
2.80%, 05/04/05		107,021		107,004

				20,577,610

FLOATING RATE NOTES³ – 4.32%
Allstate Life Global Funding II
2.91%, 03/08/06⁴		159,319		159,324
American Express Centurion Bank
2.98% - 3.04%, 10/26/05 - 01/24/06		1,212,210		1,212,378
Bank of Nova Scotia
2.80% - 2.94%, 09/26/05 - 01/03/06		225,125		225,080
Beta Finance Inc.
2.81% - 3.16%, 05/04/05 - 04/25/06⁴		1,329,967		1,330,030
BMW US Capital LLC
2.92%, 04/18/06⁴		346,346		346,346
Canadian Imperial Bank of Commerce
2.86% - 3.00%, 09/13/05 - 12/14/05		1,177,575		1,177,406
CC USA Inc.
2.81% - 3.12%, 05/04/05 - 03/23/06⁴		900,499		900,464
Commodore CDO Ltd.
3.08%, 12/12/05		86,586		86,586
Den Danske Bank NY
2.85% - 2.96%, 08/12/05 - 10/17/05		1,039,037		1,038,928
DEPFA Bank PLC
2.99%, 03/15/06		346,346		346,346
Dorada Finance Inc.
3.00% - 3.12%, 07/29/05 - 03/27/06⁴		751,570		751,606
Fairway Finance LLC
2.94%, 06/20/05		173,173		173,170
Fifth Third Bancorp
2.98%, 02/23/06⁴		692,691		692,691
Five Finance Inc.
3.01%, 02/27/06⁴		173,173		173,192
General Electric Capital Corp.
3.01%, 05/09/06		155,856		156,044
General Electric Commercial Equipment Financing LLC
2.95%, 11/20/05		99,641		99,642
Greenwich Capital Holdings Inc.
2.83%, 09/02/05		225,125		225,125
Hartford Life Global Funding Trust
2.94%, 04/15/06		346,346		346,346
HBOS Treasury Services PLC
2.87% - 3.08%, 01/10/06 - 04/24/06		1,039,037		1,039,038
K2 USA LLC
2.87% - 3.11%, 06/10/05 - 02/15/06⁴		1,558,556		1,558,584
Leafs LLC
2.99%, 01/20/06 - 02/21/06⁴		363,663		363,663
Links Finance LLC
2.92% - 3.15%, 11/16/05 - 02/06/06⁴		727,326		727,602
Lothian Mortgages PLC
3.01%, 01/24/06⁴		519,519		519,519


72		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	*Principal*		*Value*
Marshall & Ilsley Corp.
3.09%, 02/20/06	$	346,346	$	346,679
MetLife Global Funding I
2.86%, 05/05/06⁴		519,519		519,519
National City Bank (Ohio)
2.84% - 2.95%, 06/10/05 - 08/09/05		865,864		865,828
Nationwide Building Society
2.89% - 3.12%, 01/13/06 - 04/28/06⁴		1,281,479		1,281,703
Norddeutsche Landesbank
3.11%, 07/27/05		346,346		346,317
Northern Rock PLC
2.88% - 2.99%, 10/25/05 - 02/03/06⁴		1,039,037		1,039,037
Permanent Financing PLC
2.87% - 2.89%, 06/10/05 - 03/10/06		1,229,527		1,229,528
Royal Bank of Scotland
2.79% - 2.91%, 06/20/05 - 04/05/06		470,164		470,017
Sedna Finance Inc.
2.92%, 01/10/06 - 01/17/06⁴		190,490		190,454
Sigma Finance Inc.
2.82% - 3.16%, 08/17/05 - 01/09/06⁴		1,766,363		1,766,399
Societe Generale
2.99%, 03/30/06		294,394		294,304
SunTrust Bank
3.17%, 04/28/06		519,519		519,519
Tango Finance Corp.
2.74% - 2.99%, 05/17/05 - 09/15/05⁴		938,597		938,571
Wachovia Asset Securitization Inc.
3.00% - 3.01%, 05/25/05		943,422		943,422
Wells Fargo & Co.
2.92%, 05/15/06⁴		173,173		173,194
WhistleJacket Capital LLC
2.86% - 2.97%, 06/15/05 - 01/17/06⁴		1,212,210		1,212,133

*Security*	*Shares or* *Principal*		*Value*
White Pine Finance LLC
2.80% - 3.09%, 05/20/05 - 01/13/06⁴	$	1,485,823	$	1,485,726
Windmill Funding Corp.
2.78%, 05/03/05		242,442		242,423
Winston Funding Ltd.
3.22%, 07/23/05⁴		247,291		247,291
World Savings Bank
2.86%, 09/09/05		121,221		121,217

				27,882,391

MONEY MARKET FUNDS – 0.34%
Barclays Global Investors Funds Government Money Market Fund, Institutional Shares^3,5		1,385,383		1,385,383
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares⁵		634,153		634,153
BlackRock Temp Cash Money Market Fund³		50,171		50,171
Short-Term Investment Co. - Prime Money Market Portfolio, Institutional Shares³		140,325		140,325

				2,210,032

REPURCHASE AGREEMENTS³ – 2.45%
Bank of America N.A. Repurchase Agreement, dated 4/29/05, due 5/2/05, with a maturity value of $8,660,785 and an effective yield of 2.97%.⁶	$	8,658,642		8,658,642
Goldman Sachs & Co. Repurchase Agreements, dated 4/29/05, due 5/2/05, with a total maturity value of $4,211,462 and effective yields of 2.96% - 3.00%.⁶		4,210,421		4,210,421
Merrill Lynch Government Securities Inc. Repurchase Agreements, dated 4/29/05, due 5/2/05, with a total maturity value of $2,940,674 and effective yields of 2.96% - 3.00%.⁶		2,939,945		2,939,945

				15,809,008


SCHEDULES OF INVESTMENTS		73

Schedule of Investments (Continued)

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

April 30, 2005


*Security*	*Principal*		*Value*
TIME DEPOSITS³ – 1.60%
American Express Centurion Bank
3.00%, 05/25/05	$	865,864	$	865,864
Banco Bilbao Vizcaya Argentaria SA
3.03% - 3.18%, 06/27/05 - 09/14/05		502,201		502,202
BNP Paribas (New York)
2.78% - 3.03%, 07/11/05 - 08/23/05		484,884		484,884
Credit Suisse First Boston
2.75% - 2.81%, 05/03/05		450,249		450,250
Dexia Credit Local SA
2.81% - 3.01%, 05/04/05 - 06/21/05		675,374		675,376
First Tennessee Bank
3.00% - 3.04%, 06/14/05 - 06/27/05		606,105		606,105
HBOS Treasury Services PLC
3.39%, 12/14/05		207,807		207,807
Natexis Banques
2.98%, 08/18/05		346,346		346,346
Norddeutsche Landesbank
2.11%, 06/07/05		346,346		346,339
Societe Generale
2.81%, 05/03/05		242,442		242,442
SunTrust Bank
2.68%, 05/03/05		346,346		346,345
Svenska Handelsbanken AB
3.00%, 06/20/05		173,173		173,173
Toronto-Dominion Bank
1.77% - 3.18%, 05/10/05 - 11/09/05		1,056,354		1,056,330
UBS AG
2.67% - 3.40%, 11/09/05 - 12/15/05		277,077		277,074
Washington Mutual Bank
2.81% - 3.15%, 05/02/05 - 07/28/05		2,233,930		2,233,931
Wells Fargo Bank N.A.
3.04%, 06/29/05		1,039,037		1,039,037
World Savings Bank
2.75%, 05/03/05		484,884		484,884

				10,338,389

U.S. GOVERNMENT AGENCY NOTES³ – 0.11%
Federal Home Loan Mortgage Corp.
2.06%, 05/31/05		172,664		172,377
Federal National Mortgage Association
2.33%, 07/22/05		519,519		516,801

				689,178

TOTAL SHORT-TERM INVESTMENTS (Cost: $77,506,608)				77,506,608

TOTAL INVESTMENTS IN SECURITIES – 111.85% (Cost: $595,158,326)				722,429,553
Other Assets, Less Liabilities – (11.85%)				(76,561,510	)

NET ASSETS – 100.00%			$	645,868,043

¹	Non-income earning security.

²	All or a portion of this security represents a security on loan. See Note 5.

³	All or a portion of this security (these securities) represent(s) an investment of securities lending collateral. See Note 5.

⁴	All or a portion of this security is 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	The Fund’s investment adviser is an affiliate of the issuer. See Note 2.

⁶	Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 3.12% to 7.13% and maturity dates ranging from 5/25/05 to 8/1/42.

See notes to financial statements.


74		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® DOW JONES SELECT DIVIDEND INDEX FUND

April 30, 2005


*Security*	*Shares*	*Value*
COMMON STOCKS – 99.55%

AGRICULTURE – 5.13%
Altria Group Inc.	4,027,157	$	261,724,933
Universal Corp.	1,427,305		65,156,473

			326,881,406

AUTO MANUFACTURERS – 1.40%
General Motors Corp.	3,330,166		88,848,829

			88,848,829

BANKS – 27.17%
AmSouth Bancorp	3,360,126		88,438,516
Associated Bancorp	2,265,365		70,045,086
Bank of America Corp.	4,016,956		180,923,698
Bank of Hawaii Corp.	292,864		13,867,110
BB&T Corp.	825,652		32,373,815
Citizens Banking Corp.	2,299,274		61,643,536
Colonial BancGroup Inc. (The)	1,386,646		30,589,411
Comerica Inc.	2,349,484		134,531,454
Compass Bancshares Inc.	160,078		6,886,556
Fifth Third Bancorp	14,997		652,369
First Horizon National Corp.	1,972,103		81,901,438
FirstMerit Corp.	3,367,747		82,610,834
FNB Corp. (Pennsylvania)	4,501,315		85,299,919
Hibernia Corp. Class A	1,567,937		48,966,673
Hudson United Bancorp	2,505,177		85,827,364
Huntington Bancshares Inc.	2,301,442		54,106,901
KeyCorp	3,296,688		109,318,174
National City Corp.	2,967,870		100,788,865
North Fork Bancorp Inc.	658,027		18,523,460
PNC Financial Services Group	2,721,895		144,886,471
Provident Bankshares Corp.	1,445,700		42,330,096
Regions Financial Corp.	2,026,068		67,853,017
Sky Financial Group Inc.	2,105,369		54,950,131
SunTrust Banks Inc.	239,200		17,420,936
U.S. Bancorp	535,105		14,929,429
Wells Fargo & Co.	672,076		40,284,235
Whitney Holding Corp.	1,346,421		60,952,479

			1,730,901,973

BEVERAGES – 0.31%
Coca-Cola Co. (The)	452,962		19,676,669

			19,676,669

CHEMICALS – 6.67%
Dow Chemical Co. (The)	1,485,006		68,206,326
Eastman Chemical Co.	1,936,476		104,569,704
Lubrizol Corp.	1,634,816		63,381,816
Lyondell Chemical Co.	1,853,325		46,499,924
PPG Industries Inc.	1,609,136		108,697,137
RPM International Inc.	1,952,914		33,687,766

			425,042,673

COMMERCIAL SERVICES – 2.34%
Deluxe Corp.	2,192,209		87,534,905
Donnelley (R.R.) & Sons Co.	1,865,064		61,379,256

			148,914,161

COSMETICS & PERSONAL CARE – 0.84%
Kimberly-Clark Corp.	859,491		53,675,213

			53,675,213

DISTRIBUTION & WHOLESALE – 1.49%
Genuine Parts Co.	2,218,593		95,177,640

			95,177,640

DIVERSIFIED FINANCIAL SERVICES – 2.28%
Citigroup Inc.	1,218,995		57,244,005
JP Morgan Chase & Co.	2,231,588		79,199,058
Waddell & Reed Financial Inc. Class A	504,172		8,777,635

			145,220,698

ELECTRIC – 19.27%
Black Hills Corp.	2,782,363		95,379,404
DTE Energy Co.	3,807,889		174,972,500
Duquesne Light Holdings Inc.	6,263,384		110,172,925
Energy East Corp.	3,459,859		90,025,531
Entergy Corp.	631,634		46,298,772
Exelon Corp.	996,683		49,335,808
FirstEnergy Corp.	2,853,784		124,196,680
FPL Group Inc.	4,462,396		182,155,005
MDU Resources Group Inc.	247,938		6,701,764
NiSource Inc.	3,742,044		86,965,103
Pinnacle West Capital Corp.	3,268,149		136,935,443
PPL Corp.	1,375,497		74,634,467
SCANA Corp.	764,764		29,703,434
UniSource Energy Corp.	653,650		20,426,563

			1,227,903,399


SCHEDULES OF INVESTMENTS		75

Schedule of Investments (Continued)

iSHARES^® DOW JONES SELECT DIVIDEND INDEX FUND

April 30, 2005


*Security*	*Shares*	*Value*
ELECTRICAL COMPONENTS & EQUIPMENT – 0.67%
Emerson Electric Co.	679,944	$	42,612,090

			42,612,090

ENVIRONMENTAL CONTROL – 0.34%
Waste Management Inc.	768,230		21,886,873

			21,886,873

FOOD – 1.47%
Albertson’s Inc.	1,410,380		27,911,420
General Mills Inc.	730,823		36,102,656
Sara Lee Corp.	1,389,277		29,716,635

			93,730,711

FOREST PRODUCTS & PAPER – 0.65%
MeadWestvaco Corp.	1,406,932		41,434,147

			41,434,147

GAS – 1.80%
Nicor Inc.	2,495,328		92,252,276
ONEOK Inc.	780,634		22,529,097

			114,781,373

HOME FURNISHINGS – 1.06%
La-Z-Boy Inc.	606,008		7,175,135
Maytag Corp.	13,008		126,048
Whirlpool Corp.	973,047		60,387,297

			67,688,480

HOUSEHOLD PRODUCTS & WARES – 0.47%
Avery Dennison Corp.	566,396		29,650,831

			29,650,831

INSURANCE – 4.83%
Cincinnati Financial Corp.	23,299		937,552
Gallagher (Arthur J.) & Co.	1,153,961		32,126,274
Jefferson-Pilot Corp.	771,837		38,753,936
Lincoln National Corp.	2,227,062		100,150,978
Unitrin Inc.	2,986,818		135,900,219

			307,868,959

OFFICE & BUSINESS EQUIPMENT – 0.73%
Pitney Bowes Inc.	1,045,112		46,737,409

			46,737,409

OIL & GAS – 3.69%
ChevronTexaco Corp.	1,423,611		74,027,772
Marathon Oil Corp.	2,002,517		93,257,217
Occidental Petroleum Corp.	978,292		67,502,148

			234,787,137

PACKAGING & CONTAINERS – 0.79%
Sonoco Products Co.	1,859,851		50,383,364

			50,383,364

PHARMACEUTICALS – 4.64%
Abbott Laboratories	656,275		32,262,479
Bristol-Myers Squibb Co.	4,723,792		122,818,592
Lilly (Eli) & Co.	209,825		12,268,468
Merck & Co. Inc.	3,409,327		115,576,185
Pfizer Inc.	459,484		12,484,180

			295,409,904

PIPELINES – 2.46%
Equitable Resources Inc.	1,068,428		61,584,190
Kinder Morgan Inc.	1,246,041		95,272,295

			156,856,485

RETAIL – 0.79%
May Department Stores Co. (The)	1,434,546		50,323,874

			50,323,874

SAVINGS & LOANS – 4.65%
Astoria Financial Corp.	225,505		5,978,138
New York Community Bancorp Inc.	2,643,206		46,784,746
People’s Bank	2,800,263		116,294,922
Washington Federal Inc.	1,865,271		41,576,891
Washington Mutual Inc.	2,071,689		85,602,189

			296,236,886

TELECOMMUNICATIONS – 3.61%
Alltel Corp.	963,118		54,859,201
BellSouth Corp.	2,869,993		76,026,115
SBC Communications Inc.	4,169,779		99,240,740

			230,126,056

TOTAL COMMON STOCKS (Cost: $6,214,754,048)			6,342,757,240


76		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® DOW JONES SELECT DIVIDEND INDEX FUND

April 30, 2005


*Security*	*Shares*	*Value*
SHORT-TERM INVESTMENTS – 0.19%

MONEY MARKET FUNDS – 0.19%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares¹	12,243,162	$	12,243,162

			12,243,162

TOTAL SHORT-TERM INVESTMENTS (Cost: $12,243,162)			12,243,162

TOTAL INVESTMENTS IN SECURITIES – 99.74% (Cost: $6,226,997,210)			6,355,000,402
Other Assets, Less Liabilities – 0.26%			16,479,358

NET ASSETS – 100.00%		$	6,371,479,760

¹	The Fund’s investment adviser is an affiliate of the issuer. See Note 2.

See notes to financial statements.


SCHEDULES OF INVESTMENTS		77

Schedule of Investments

iSHARES^® DOW JONES TRANSPORTATION AVERAGE INDEX FUND

April 30, 2005


*Security*	*Shares or* *Principal*		*Value*
COMMON STOCKS – 99.93%

AIRLINES – 9.76%
Alaska Air Group Inc.¹		24,568	$	655,229
AMR Corp.^1,2		142,299		1,489,871
Continental Airlines Inc. Class B^1,2		167,973		1,988,800
Delta Air Lines Inc.^1,2		138,876		456,902
JetBlue Airways Corp.^1,2		126,026		2,526,821
Northwest Airlines Corp.^1,2		82,434		427,008
SkyWest Inc.		39,038		705,807
Southwest Airlines Co.		153,103		2,278,173

				10,528,611

TRANSPORTATION – 85.67%
Alexander & Baldwin Inc.²		129,511		5,274,983
Burlington Northern Santa Fe Corp.		124,073		5,986,522
CH Robinson Worldwide Inc.		111,872		5,772,595
CNF Inc.		124,071		5,304,035
CSX Corp.		131,569		5,279,864
Expeditors International Washington Inc.		156,873		7,704,033
FedEx Corp.		143,349		12,177,498
Hunt (J.B.) Transport Services Inc.		130,799		5,112,933
Norfolk Southern Corp.		150,146		4,714,584
Ryder System Inc.		140,679		5,195,276
Union Pacific Corp.		130,510		8,343,504
United Parcel Service Inc. Class B		151,436		10,798,901
USF Corp.²		125,678		5,357,653
Yellow Roadway Corp.¹		109,518		5,366,382

				92,388,763

TRUCKING & LEASING – 4.50%
GATX Corp.²		148,187		4,848,679

				4,848,679

TOTAL COMMON STOCKS (Cost: $116,549,791)				107,766,053

SHORT-TERM INVESTMENTS – 12.08%

COMMERCIAL PAPER³ – 3.20%
Alpine Securitization Corp.
2.80%, 05/04/05	$	166,218		166,188
Amstel Funding Corp.
2.95%, 08/19/05		24,157		23,942

*Security*	*Principal*		*Value*
Amsterdam Funding Corp.
2.80% - 3.02%, 05/04/05 - 05/27/05	$	65,673	$	65,607
ANZ National Bank Ltd.
2.94%, 08/15/05		29,059		28,810
Blue Ridge Asset Funding Corp.
3.02%, 06/02/05		87,177		86,950
Bryant Park Funding LLC
2.75%, 05/03/05		11,624		11,623
Cancara Asset Securitisation LLC
2.80% - 2.97%, 05/03/05 - 05/23/05		192,748		192,700
Cantabric Finance LLC
3.04% - 3.12%, 06/28/05 - 07/25/05		72,648		72,174
Chariot Funding LLC
2.99%, 05/20/05		13,818		13,797
Charta LLC
2.99%, 06/16/05 - 06/21/05		122,048		121,565
Chesham Finance LLC
2.89% - 3.01%, 05/10/05 - 06/21/05		206,319		206,068
Corporate Asset Funding
2.75% - 2.99%, 05/05/05 - 06/16/05		107,518		107,260
CRC Funding LLC
2.95% - 3.00%, 05/02/05 - 06/29/05		101,707		101,542
DEPFA Bank PLC
2.28%, 05/03/05		29,059		29,057
Deutsche Bank Financial LLC
2.80%, 05/03/05		174,354		174,341
Edison Asset Securitization
2.26% - 3.12%, 05/03/05 - 09/06/05		197,601		197,106
Fairway Finance LLC
3.15%, 09/15/05		51,699		51,084
Falcon Asset Securitization Corp.
2.79% - 3.02%, 05/03/05 - 06/01/05		116,438		116,299


78		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® DOW JONES TRANSPORTATION AVERAGE INDEX FUND

April 30, 2005


*Security*	*Principal*		*Value*
Ford Credit Auto Receivables
2.74%, 05/04/05	$	28,478	$	28,474
Fortis Funding LLC
2.35%, 05/09/05		81,365		81,328
Gemini Securitization Corp.
3.02%, 06/27/05		5,812		5,785
General Electric Capital Corp.
2.74%, 07/07/05		29,059		28,913
Georgetown Funding Co. LLC
2.81% - 3.05%, 05/03/05 - 06/16/05		127,860		127,685
Grampian Funding LLC
3.00% - 3.13%, 08/22/05 - 09/09/05		174,354		172,664
Jupiter Securization Corp.
2.99% - 3.02%, 05/19/05 - 06/03/05		234,611		234,143
Kitty Hawk Funding Corp.
2.88%, 05/04/05		43,888		43,881
Moat Funding LLC
2.74%, 05/02/05		40,683		40,683
Mortgage Interest Networking Trust
2.82% - 3.05%, 05/02/05 - 05/24/05		75,553		75,543
Nordea North America Inc.
2.74%, 07/11/05		29,059		28,905
Park Granada LLC
3.04%, 05/25/05 - 05/31/05		37,777		37,699
Ranger Funding Co. LLC
2.89% - 3.02%, 05/04/05 - 05/27/05		93,948		93,853
Santander Central Hispano
2.75%, 07/08/05		72,648		72,276
Scaldis Capital LLC
2.75% - 2.99%, 05/16/05 - 07/08/05		171,464		171,181
Societe Generale
2.75% - 2.79%, 05/02/05 - 05/03/05		200,507		200,496
Sydney Capital Corp.
2.81%, 05/04/05		19,179		19,176
Tulip Funding Corp.
2.80% - 3.02%, 05/03/05 - 07/01/05		159,825		159,755
UBS Finance (Delaware)
2.79%, 05/04/05		46,494		46,487
Windmill Funding Corp.
2.80%, 05/04/05		17,958		17,956

				3,452,996

FLOATING RATE NOTES³ – 4.34%
Allstate Life Global Funding II
2.91%, 03/08/06⁴		26,734		26,735
American Express Centurion Bank
2.98% - 3.04%, 10/26/05 - 01/24/06		203,413		203,441
Bank of Nova Scotia
2.80% - 2.94%, 09/26/05 - 01/03/06		37,777		37,769
Beta Finance Inc.
2.81% - 3.16%, 05/04/05 - 04/25/06⁴		223,173		223,184
BMW US Capital LLC
2.92%, 04/18/06⁴		58,118		58,118
Canadian Imperial Bank of Commerce
2.86% - 3.00%, 09/13/05 - 12/14/05		197,601		197,574
CC USA Inc.
2.81% - 3.12%, 05/04/05 - 03/23/06⁴		151,107		151,102
Commodore CDO Ltd.
3.08%, 12/12/05		14,530		14,530
Den Danske Bank NY
2.85% - 2.96%, 08/12/05 - 10/17/05		174,354		174,336
DEPFA Bank PLC
2.99%, 03/15/06		58,118		58,118
Dorada Finance Inc.
3.00% - 3.12%, 07/29/05 - 03/27/06⁴		126,116		126,122
Fairway Finance LLC
2.94%, 06/20/05		29,059		29,059


SCHEDULES OF INVESTMENTS		79

Schedule of Investments (Continued)

iSHARES^® DOW JONES TRANSPORTATION AVERAGE INDEX FUND

April 30, 2005


*Security*	*Principal*		*Value*
Fifth Third Bancorp
2.98%, 02/23/06⁴	$	116,236	$	116,236
Five Finance Inc.
3.01%, 02/27/06⁴		29,059		29,062
General Electric Capital Corp.
3.01%, 05/09/06		26,153		26,185
General Electric Commercial Equipment Financing LLC
2.95%, 11/20/05		16,720		16,720
Greenwich Capital Holdings Inc.
2.83%, 09/02/05		37,777		37,777
Hartford Life Global Funding Trust
2.94%, 04/15/06		58,118		58,118
HBOS Treasury Services PLC
2.87% - 3.08%, 01/10/06 - 04/24/06		174,354		174,354
K2 USA LLC
2.87% - 3.11%, 06/10/05 - 02/15/06⁴		261,531		261,536
Leafs LLC
2.99%, 01/20/06 - 02/21/06⁴		61,024		61,024
Links Finance LLC
2.92% - 3.15%, 11/16/05 - 02/06/06⁴		122,048		122,094
Lothian Mortgages PLC
3.01%, 01/24/06⁴		87,177		87,177
Marshall & Ilsley Corp.
3.09%, 02/20/06		58,118		58,174
MetLife Global Funding I
2.86%, 05/05/06⁴		87,177		87,177
National City Bank (Ohio)
2.84% - 2.95%, 06/10/05 - 08/09/05		145,295		145,289
Nationwide Building Society
2.89% - 3.12%, 01/13/06 - 04/28/06⁴		215,037		215,074
Norddeutsche Landesbank
3.11%, 07/27/05		58,118		58,113
Northern Rock PLC
2.88% - 2.99%, 10/25/05 - 02/03/06⁴		174,354		174,354

*Security*	Shares or Principal		*Value*
Permanent Financing PLC
2.87% - 2.89%, 06/10/05 - 03/10/06	$	206,319	$	206,319
Royal Bank of Scotland
2.79% - 2.91%, 06/20/05 - 04/05/06		78,895		78,870
Sedna Finance Inc.
2.92%, 01/10/06 - 01/17/06⁴		31,965		31,959
Sigma Finance Inc.
2.82% - 3.16%, 08/17/05 - 01/09/06⁴		296,402		296,411
Societe Generale
2.99%, 03/30/06		49,400		49,385
SunTrust Bank
3.17%, 04/28/06		87,177		87,177
Tango Finance Corp.
2.74% - 2.99%, 05/17/05 - 09/15/05⁴		157,500		157,496
Wachovia Asset Securitization Inc.
3.00% - 3.01%, 05/25/05		158,310		158,309
Wells Fargo & Co.
2.92%, 05/15/06⁴		29,059		29,063
WhistleJacket Capital LLC
2.86% - 2.97%, 06/15/05 - 01/17/06⁴		203,413		203,400
White Pine Finance LLC
2.80% - 3.09%, 05/20/05 - 01/13/06⁴		249,326		249,309
Windmill Funding Corp.
2.78%, 05/03/05		40,683		40,679
Winston Funding Ltd.
3.22%, 07/23/05⁴		41,496		41,496
World Savings Bank
2.86%, 09/09/05		20,341		20,341

				4,678,766

MONEY MARKET FUNDS – 0.36%
Barclays Global Investors Funds Government Money Market Fund, Institutional Shares^3,5		232,472		232,472
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares⁵		121,616		121,616


80		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® DOW JONES TRANSPORTATION AVERAGE INDEX FUND

April 30, 2005


*Security*	*Shares or* *Principal*		*Value*
BlackRock Temp Cash Money Market Fund³		8,419	$	8,419
Short-Term Investment Co. - Prime Money Market Portfolio, Institutional Shares³		23,547		23,547

				386,054

REPURCHASE AGREEMENTS³ – 2.46%
Bank of America N.A. Repurchase Agreement, dated 4/29/05, due 5/2/05, with a maturity value of $1,453,310 and an effective yield of 2.97%.⁶	$	1,452,950		1,452,950
Goldman Sachs & Co. Repurchase Agreements, dated 4/29/05, due 5/2/05, with a total maturity value of $706,697 and effective yields of 2.96% - 3.00%.⁶		706,523		706,523
Merrill Lynch Government Securities Inc. Repurchase Agreements, dated 4/29/05. due 5/2/05, with a total maturity value of $493,455 and effective yields of 2.96% - 3.00%.⁶		493,333		493,333

				2,652,806

TIME DEPOSITS³ – 1.61%
American Express Centurion Bank
3.00%, 05/25/05		145,295		145,296
Banco Bilbao Vizcaya Argentaria SA
3.03% - 3.18%, 06/27/05 - 09/14/05		84,271		84,271
BNP Paribas (New York)
2.78% - 3.03%, 07/11/05 - 08/23/05		81,365		81,365
Credit Suisse First Boston
2.75% - 2.81%, 05/03/05		75,553		75,553
Dexia Credit Local SA
2.81% - 3.01%, 05/04/05 - 06/21/05		113,330		113,330
First Tennessee Bank
3.00% - 3.04%, 06/14/05 - 06/27/05		101,707		101,707

*Security*	*Principal*		*Value*
HBOS Treasury Services PLC
3.39%, 12/14/05	$	34,871	$	34,871
Natexis Banques
2.98%, 08/18/05		58,118		58,118
Norddeutsche Landesbank
2.11%, 06/07/05		58,118		58,117
Societe Generale
2.81%, 05/03/05		40,683		40,683
SunTrust Bank
2.68%, 05/03/05		58,118		58,118
Svenska Handelsbanken AB
3.00%, 06/20/05		29,059		29,059
Toronto-Dominion Bank
1.77% - 3.18%, 05/10/05 - 11/09/05		177,260		177,256
UBS AG
2.67% - 3.40%, 11/09/05 - 12/15/05		46,494		46,494
Washington Mutual Bank
2.81% - 3.15%, 05/02/05 - 07/28/05		374,861		374,862
Wells Fargo Bank N.A.
3.04%, 06/29/05		174,354		174,354
World Savings Bank
2.75%, 05/03/05		81,365		81,365

				1,734,819

U.S. GOVERNMENT AGENCY NOTES³ – 0.11%
Federal Home Loan Mortgage Corp.
2.06%, 05/31/05		28,974		28,926
Federal National Mortgage Association
2.33%, 07/22/05		87,177		86,721

				115,647

TOTAL SHORT-TERM INVESTMENTS (Cost: $13,021,088)				13,021,088

TOTAL INVESTMENTS IN SECURITIES – 112.01% (Cost: $129,570,879)				120,787,141
Other Assets, Less Liabilities – (12.01%)				(12,947,400	)

NET ASSETS – 100.00%			$	107,839,741


SCHEDULES OF INVESTMENTS		81

Schedule of Investments (Continued)

iSHARES^® DOW JONES TRANSPORTATION AVERAGE INDEX FUND

April 30, 2005

¹	Non-income earning security.

²	All or a portion of this security represents a security on loan. See Note 5.

³	All or a portion of this security (these securities) represent(s) an investment of securities lending collateral. See Note 5.

⁴	All or a portion of this security is 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	The Fund’s investment adviser is an affiliate of the issuer. See Note 2.

⁶	Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 3.12% to 7.13% and maturity dates ranging from 5/25/05 to 8/1/42.

See notes to financial statements.


82		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities

iSHARES^® TRUST

April 30, 2005


	*iShares Dow Jones U.S.*
	Total Market Index Fund			Energy Sector Index Fund			Healthcare Sector Index Fund			Technology Sector Index Fund
ASSETS
Investments, at cost:
Unaffiliated issuers	$	393,145,083		$	546,766,378		$	1,226,885,057		$	473,599,149

Affiliated issuers^a	$	1,170,444		$	1,174,591		$	2,381,248		$	907,231

Investments in securities, at value (including securities on loan^b) (Note 1):
Unaffiliated issuers	$	443,508,261		$	687,838,067		$	1,252,725,156		$	423,372,134
Affiliated issuers^a		1,170,444			1,174,591			2,381,248			907,231
Receivables:
Investment securities sold		17			—			—			175
Dividends and interest		479,812			155,237			686,894			27,623
Capital shares sold		—			—			27,633			—

Total Assets		445,158,534			689,167,895			1,255,820,931			424,307,163

LIABILITIES
Payables:
Investment securities purchased		595,151			—			—			—
Collateral for securities on loan (Note 5)		29,592,813			50,067,327			86,017,311			29,100,151
Investment advisory fees (Note 2)		68,694			327,704			520,839			202,089

Total Liabilities		30,256,658			50,395,031			86,538,150			29,302,240

NET ASSETS	$	414,901,876		$	638,772,864		$	1,169,282,781		$	395,004,923

Net assets consist of:
Paid-in capital	$	380,359,464		$	502,681,843		$	1,156,812,683		$	507,546,555
Undistributed net investment income		578,624			—			122,203			28,343
Accumulated net realized loss		(16,399,390	)		(4,980,668	)		(13,492,204	)		(62,342,960	)
Net unrealized appreciation (depreciation)		50,363,178			141,071,689			25,840,099			(50,227,015	)

NET ASSETS	$	414,901,876		$	638,772,864		$	1,169,282,781		$	395,004,923

Shares outstanding		7,500,000			9,050,000			19,350,000			9,200,000

Net asset value per share	$	55.32		$	70.58		$	60.43		$	42.94

^a	The Funds’ investment adviser is an affiliate of the issuers. See Note 2.

^b	Securities on loan with market values of $28,722,821, $48,960,816, $83,705,349 and $28,056,895, respectively. See Note 5.

See notes to financial statements.


FINANCIAL STATEMENTS		83

Statements of Assets and Liabilities (Continued)

iSHARES^® TRUST

April 30, 2005


	*iShares Dow Jones U.S.*						*iShares Dow Jones*
	Telecommunications Sector Index Fund			Utilities Sector Index Fund			Select Dividend Index Fund			Transportation Average Index Fund
ASSETS
Investments, at cost:
Unaffiliated issuers	$	346,111,806		$	593,138,790		$	6,214,754,048		$	129,216,791

Affiliated issuers^a	$	776,893		$	2,019,536		$	12,243,162		$	354,088

Investments in securities, at value (including securities on loan^b) (Note 1):
Unaffiliated issuers	$	336,964,853		$	720,410,017		$	6,342,757,240		$	120,433,053
Affiliated issuers^a		776,893			2,019,536			12,243,162			354,088
Receivables:
Investment securities sold		—			—			—			1,294,744
Dividends and interest		2,020,176			1,407,819			18,372,237			25,624
Capital shares sold		—			—			134,447			—

Total Assets		339,761,922			723,837,372			6,373,507,086			122,107,509

LIABILITIES
Payables:
Investment securities purchased		1,437,048			789,639			—			1,317,382
Collateral for securities on loan (Note 5)		24,788,291			76,872,455			—			12,899,472
Investment advisory fees (Note 2)		158,528			307,235			2,027,326			50,914

Total Liabilities		26,383,867			77,969,329			2,027,326			14,267,768

NET ASSETS	$	313,378,055		$	645,868,043		$	6,371,479,760		$	107,839,741

Net assets consist of:
Paid-in capital	$	349,729,811		$	543,810,949		$	6,288,801,560		$	117,155,172
Undistributed net investment income		1,826,072			759,317			3,467,935			—
Accumulated net realized loss		(29,030,875	)		(25,973,450	)		(48,792,927	)		(531,693	)
Net unrealized appreciation (depreciation)		(9,146,953	)		127,271,227			128,003,192			(8,783,738	)

NET ASSETS	$	313,378,055		$	645,868,043		$	6,371,479,760		$	107,839,741

Shares outstanding		13,650,000			8,850,000			106,900,000			1,750,000

Net asset value per share	$	22.96		$	72.98		$	59.60		$	61.62

^a	The Funds’ investment adviser is an affiliate of the issuers. See Note 2.

^b	Securities on loan with market values of $23,996,562, $74,129,253, $- and $12,450,505, respectively. See Note 5.

See notes to financial statements.


84		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations

iSHARES^® TRUST

Year Ended April 30, 2005


	*iShares Dow Jones U.S.*
	Total Market Index Fund			Energy Sector Index Fund		Healthcare Sector Index Fund			Technology Sector Index Fund
NET INVESTMENT INCOME
Dividends^a	$	8,058,368		$	8,512,317	$	10,630,945		$	8,966,169
Interest		26			—		—			—
Interest from affiliated issuers^b		5,744			5,424		8,921			4,377
Securities lending income^c		35,827			30,080		78,494			28,974

Total investment income		8,099,965			8,547,821		10,718,360			8,999,520

EXPENSES (Note 2)
Investment advisory fees		806,782			2,915,019		4,805,393			2,273,897

Total expenses		806,782			2,915,019		4,805,393			2,273,897

Net investment income		7,293,183			5,632,802		5,912,967			6,725,623

NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments		(2,889,321	)		1,583,690		(4,212,462	)		(21,879,464	)
In-kind redemptions		—			17,018,358		24,821,627			16,253,724

Net realized gain (loss)		(2,889,321	)		18,602,048		20,609,165			(5,625,740	)

Net change in unrealized appreciation (depreciation)		22,448,857			102,972,489		13,762,481			(12,766,375	)

Net realized and unrealized gain (loss)		19,559,536			121,574,537		34,371,646			(18,392,115	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	26,852,719		$	127,207,339	$	40,284,613		$	(11,666,492	)

^a	Net of foreign withholding tax of $722, $-, $45 and $-, respectively.

^b	The Funds’ investment adviser is an affiliate of the issuers. See Note 2.

^c	Includes income earned from issuers of which the Funds’ investment adviser is an affiliate. See Note 2.

See notes to financial statements.


FINANCIAL STATEMENTS		85

Statements of Operations (Continued)

iSHARES^® TRUST

Year Ended April 30, 2005


	*iShares Dow Jones U.S.*						*iShares Dow Jones*
	Telecommunications Sector Index Fund			Utilities Sector Index Fund			Select Dividend Index Fund			Transportation Average Index Fund
NET INVESTMENT INCOME
Dividends^a	$	11,003,064		$	19,520,738		$	152,375,618		$	914,020
Interest from affiliated issuers^b		4,310			9,210			135,174			1,321
Securities lending income^c		37,589			75,155			140			30,974

Total investment income		11,044,963			19,605,103			152,510,932			946,315

EXPENSES (Note 2)
Investment advisory fees		1,858,698			3,178,855			16,102,974			496,584

Total expenses		1,858,698			3,178,855			16,102,974			496,584

Net investment income		9,186,265			16,426,248			136,407,958			449,731

NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments		(5,367,361	)		(2,519,386	)		(48,072,192	)		(437,055	)
In-kind redemptions		16,955,878			27,249,051			176,511,565			18,741,829

Net realized gain		11,588,517			24,729,665			128,439,373			18,304,774

Net change in unrealized appreciation (depreciation)		4,810,617			101,862,520			153,745,411			(8,198,623	)

Net realized and unrealized gain		16,399,134			126,592,185			282,184,784			10,106,151

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	25,585,399		$	143,018,433		$	418,592,742		$	10,555,882

^a	Net of foreign withholding tax of $127,721, $-, $- and $-, respectively.

^b	The Funds’ investment adviser is an affiliate of the issuers. See Note 2.

^c	Includes income earned from issuers of which the Funds’ investment adviser is an affiliate. See Note 2.

See notes to financial statements.


86		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets

iSHARES^® TRUST


	*iShares Dow Jones U.S.* *Total Market* *Index Fund*						*iShares Dow Jones U.S.* *Energy Sector* *Index Fund*						*iShares Dow Jones U.S.* *Healthcare Sector* *Index Fund*
	For the year ended April 30, 2005			For the year ended April 30, 2004			For the year ended April 30, 2005			For the year ended April 30, 2004			For the year ended April 30, 2005			For the year ended April 30, 2004
INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	7,293,183		$	4,345,347		$	5,632,802		$	2,744,411		$	5,912,967		$	3,383,432
Net realized gain (loss)		(2,889,321	)		(4,843,350	)		18,602,048			(637,683	)		20,609,165			8,044,713
Net change in unrealized appreciation (depreciation)		22,448,857			54,403,071			102,972,489			57,339,569			13,762,481			58,562,480

Net increase in net assets resulting from operations		26,852,719			53,905,068			127,207,339			59,446,297			40,284,613			69,990,625

DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(7,083,570	)		(4,143,218	)		(5,866,486	)		(2,776,640	)		(5,905,508	)		(3,327,668	)
Return of capital		—			—			—			(83,630	)		—			—

Total distributions to shareholders		(7,083,570	)		(4,143,218	)		(5,866,486	)		(2,860,270	)		(5,905,508	)		(3,327,668	)

CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		13,975,774			155,798,668			207,799,707			180,253,831			567,027,374			264,504,795
Cost of shares redeemed		—			—			(38,891,252	)		—			(83,921,079	)		(57,859,030	)

Net increase in net assets from capital share transactions		13,975,774			155,798,668			168,908,455			180,253,831			483,106,295			206,645,765

INCREASE IN NET ASSETS		33,744,923			205,560,518			290,249,308			236,839,858			517,485,400			273,308,722
NET ASSETS:
Beginning of year		381,156,953			175,596,435			348,523,556			111,683,698			651,797,381			378,488,659

End of year	$	414,901,876		$	381,156,953		$	638,772,864		$	348,523,556		$	1,169,282,781		$	651,797,381

Undistributed net investment income included in net assets at end of year	$	578,624		$	449,543		$	—		$	—		$	122,203		$	114,869

SHARES ISSUED AND REDEEMED:
Shares sold		250,000			3,150,000			3,100,000			3,700,000			9,750,000			4,650,000
Shares redeemed		—			—			(600,000	)		—			(1,450,000	)		(1,050,000	)

Net increase in shares outstanding		250,000			3,150,000			2,500,000			3,700,000			8,300,000			3,600,000

See notes to financial statements.


FINANCIAL STATEMENTS		87

Statements of Changes in Net Assets (Continued)

iSHARES^® TRUST


	*iShares Dow Jones U.S.* *Technology Sector* *Index Fund*						iShares Dow Jones U.S. Telecommunications Sector *Index Fund*						*iShares Dow Jones U.S.* *Utilities* *Index Fund*
	For the year ended April 30, 2005			For the year ended April 30, 2004			For the year ended April 30, 2005			For the year ended April 30, 2004			For the year ended April 30, 2005			For the year ended April 30, 2004
INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income (loss)	$	6,725,623		$	(752,929	)	$	9,186,265		$	3,616,438		$	16,426,248		$	15,193,934
Net realized gain (loss)		(5,625,740	)		8,610,955			11,588,517			10,902,867			24,729,665			15,019,265
Net change in unrealized appreciation (depreciation)		(12,766,375	)		59,914,428			4,810,617			8,420,637			101,862,520			48,099,210

Net increase (decrease) in net assets resulting from operations		(11,666,492	)		67,772,454			25,585,399			22,939,942			143,018,433			78,312,409

Undistributed net investment income included in the price of capital shares issued or redeemed		—			—			—			—			144,000			324,500

DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(6,667,027	)		—			(8,413,928	)		(3,301,807	)		(16,405,928	)		(15,072,614	)
Return of capital		(287,033	)		—			—			—			—			—

Total distributions to shareholders		(6,954,060	)		—			(8,413,928	)		(3,301,807	)		(16,405,928	)		(15,072,614	)

CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		163,275,616			108,361,174			218,640,027			165,926,674			181,124,965			171,615,651
Cost of shares redeemed		(72,186,245	)		(85,098,863	)		(138,190,301	)		(96,052,816	)		(102,503,159	)		(123,745,313	)

Net increase in net assets from capital share transactions		91,089,371			23,262,311			80,449,726			69,873,858			78,621,806			47,870,338

INCREASE IN NET ASSETS		72,468,819			91,034,765			97,621,197			89,511,993			205,378,311			111,434,633
NET ASSETS:
Beginning of year		322,536,104			231,501,339			215,756,858			126,244,865			440,489,732			329,055,099

End of year	$	395,004,923		$	322,536,104		$	313,378,055		$	215,756,858		$	645,868,043		$	440,489,732

Undistributed net investment income included in net assets at end of year	$	28,343		$	1,226		$	1,826,072		$	1,053,830		$	759,317		$	842,879

SHARES ISSUED AND REDEEMED:
Shares sold		3,600,000			2,550,000			9,800,000			7,700,000			2,800,000			3,200,000
Shares redeemed		(1,650,000	)		(1,850,000	)		(6,150,000	)		(4,550,000	)		(1,600,000	)		(2,250,000	)

Net increase in shares outstanding		1,950,000			700,000			3,650,000			3,150,000			1,200,000			950,000

See notes to financial statements.


88		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^® TRUST


	*iShares Dow Jones* *Select Dividend* *Index Fund*						*iShares Dow Jones* *Transportation Average* *Index Fund*
	For the year ended April 30, 2005			For the period November 3, 2003^a to April 30, 2004			For the year ended April 30, 2005			For the period October 6, 2003^a to April 30, 2004
INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	136,407,958		$	15,828,660		$	449,731		$	49,356
Net realized gain		128,439,373			1,731,928			18,304,774			1,181,479
Net change in unrealized appreciation (depreciation)		153,745,411			(25,742,219	)		(8,198,623	)		(585,115	)

Net increase (decrease) in net assets resulting from operations		418,592,742			(8,181,631	)		10,555,882			645,720

Undistributed net investment income included in the price of capital shares issued or redeemed		17,815,500			6,399,500			—			—

DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(133,385,049	)		(15,383,634	)		(449,731	)		(49,356	)
Return of capital		—			—			(41,538	)		(15,848	)

Total distributions to shareholders		(133,385,049	)		(15,383,634	)		(491,269	)		(65,204	)

CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		4,285,049,615			1,958,966,883			291,533,609			46,511,904
Cost of shares redeemed		(155,770,032	)		(2,624,134	)		(217,112,532	)		(23,738,369	)

Net increase in net assets from capital share transactions		4,129,279,583			1,956,342,749			74,421,077			22,773,535

INCREASE IN NET ASSETS		4,432,302,776			1,939,176,984			84,485,690			23,354,051
NET ASSETS:
Beginning of period		1,939,176,984			—			23,354,051			—

End of period	$	6,371,479,760		$	1,939,176,984		$	107,839,741		$	23,354,051

Undistributed net investment income included in net assets at end of period	$	3,467,935		$	445,026		$	—		$	—

SHARES ISSUED AND REDEEMED:
Shares sold		73,400,000			36,200,000			4,650,000			900,000
Shares redeemed		(2,650,000	)		(50,000	)		(3,350,000	)		(450,000	)

Net increase in shares outstanding		70,750,000			36,150,000			1,300,000			450,000

^a	Commencement of operations.

See notes to financial statements.


FINANCIAL STATEMENTS		89

Financial Highlights

iSHARES^® TRUST

(For a share outstanding throughout each period)


	*iShares Dow Jones U.S. Total Market Index Fund*
	Year ended Apr. 30, 2005			Year ended Apr. 30, 2004			Year ended Apr. 30, 2003			Year ended Apr. 30, 2002			Period from Jun. 12, 2000^a to Apr. 30, 2001
Net asset value, beginning of period	$	52.57		$	42.83		$	50.47		$	57.93		$	67.15

Income from investment operations:
Net investment income		0.99			0.70			0.63			0.57			0.42
Net realized and unrealized gain (loss)		2.72			9.74			(7.66	)		(7.46	)		(9.27	)

Total from investment operations		3.71			10.44			(7.03	)		(6.89	)		(8.85	)

Less distributions from:
Net investment income		(0.96	)		(0.70	)		(0.61	)		(0.57	)		(0.36	)
Net realized gain		—			—			—			—			(0.01	)

Total distributions		(0.96	)		(0.70	)		(0.61	)		(0.57	)		(0.37	)

Net asset value, end of period	$	55.32		$	52.57		$	42.83		$	50.47		$	57.93

Total return		7.05	%		24.50	%		(13.89	)%		(11.93	)%		(13.20	)%^b

Ratios/Supplemental data:
Net assets, end of period (000s)	$	414,902		$	381,157		$	175,596		$	121,140		$	66,625
Ratio of expenses to average net assets^c		0.20	%		0.20	%		0.20	%		0.20	%		0.20	%
Ratio of net investment income to average net assets^c		1.81	%		1.49	%		1.57	%		1.15	%		0.98	%
Portfolio turnover rate^d		6	%		5	%		14	%		5	%		5	%

^a	Commencement of operations.

^b	Not annualized.

^c	Annualized for periods of less than one year.

^d	Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.


90		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)


	*iShares Dow Jones U.S. Energy Sector Index Fund*
	Year ended Apr. 30, 2005			Year ended Apr. 30, 2004			Year ended Apr. 30, 2003			Year ended Apr. 30, 2002			Period from Jun. 12, 2000^a to Apr. 30, 2001
Net asset value, beginning of period	$	53.21		$	39.19		$	48.74		$	57.01		$	50.79

Income from investment operations:
Net investment income		0.73			0.70			0.71			0.63			0.40
Net realized and unrealized gain (loss)		17.40			14.04			(9.56	)		(8.26	)		6.24

Total from investment operations		18.13			14.74			(8.85	)		(7.63	)		6.64

Less distributions from:
Net investment income		(0.76	)		(0.70	)		(0.70	)		(0.64	)		(0.42	)
Return of capital		—			(0.02	)		—			—			—

Total distributions		(0.76	)		(0.72	)		(0.70	)		(0.64	)		(0.42	)

Net asset value, end of period	$	70.58		$	53.21		$	39.19		$	48.74		$	57.01

Total return		34.26	%		37.90	%		(18.22	)%		(13.34	)%		13.13	%^b

Ratios/Supplemental data:
Net assets, end of period (000s)	$	638,773		$	348,524		$	111,684		$	104,797		$	54,156
Ratio of expenses to average net assets^c		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%
Ratio of net investment income to average net assets^c		1.16	%		1.42	%		1.79	%		1.32	%		0.94	%
Portfolio turnover rate^d		3	%		2	%		9	%		18	%		20	%

^a	Commencement of operations.

^b	Not annualized.

^c	Annualized for periods of less than one year.

^d	Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.


FINANCIAL HIGHLIGHTS		91

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)


	*iShares Dow Jones U.S. Healthcare Sector Index Fund*
	Year ended Apr. 30, 2005			Year ended Apr. 30, 2004			Year ended Apr. 30, 2003			Year ended Apr. 30, 2002			Period from Jun. 12, 2000^a to Apr. 30, 2001
Net asset value, beginning of period	$	58.99		$	50.80		$	56.92		$	61.87		$	59.53

Income from investment operations:
Net investment income		0.42			0.40			0.39			0.26			0.13
Net realized and unrealized gain (loss)		1.44			8.19			(6.13	)		(4.94	)		2.44

Total from investment operations		1.86			8.59			(5.74	)		(4.68	)		2.57

Less distributions from:
Net investment income		(0.42	)		(0.40	)		(0.38	)		(0.27	)		(0.14	)
Net realized gain		—			—			—			—			(0.09	)

Total distributions		(0.42	)		(0.40	)		(0.38	)		(0.27	)		(0.23	)

Net asset value, end of period	$	60.43		$	58.99		$	50.80		$	56.92		$	61.87

Total return		3.18	%		16.96	%		(10.06	)%		(7.60	)%		4.29	%^b

Ratios/Supplemental data:
Net assets, end of period (000s)	$	1,169,283		$	651,797		$	378,489		$	236,233		$	108,269
Ratio of expenses to average net assets^c		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%
Ratio of net investment income to average net assets^c		0.74	%		0.71	%		0.80	%		0.45	%		0.29	%
Portfolio turnover rate^d		4	%		4	%		9	%		3	%		5	%

^a	Commencement of operations.

^b	Not annualized.

^c	Annualized for periods of less than one year.

^d	Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.


92		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)


	*iShares Dow Jones U.S. Technology Sector Index Fund*
	Year ended Apr. 30, 2005			Year ended Apr. 30, 2004			Year ended Apr. 30, 2003			Year ended Apr. 30, 2002			Period from May 15, 2000^a to Apr. 30, 2001
Net asset value, beginning of period	$	44.49		$	35.34		$	43.41		$	63.42		$	116.57

Income from investment operations:
Net investment income (loss)		0.72			(0.10	)		(0.05	)		(0.16	)		(0.29	)
Net realized and unrealized gain (loss)		(1.53	)		9.25			(8.02	)		(19.85	)		(52.86	)

Total from investment operations		(0.81	)		9.15			(8.07	)		(20.01	)		(53.15	)

Less distributions from:
Net investment income		(0.71	)		—			—			—			—
Return of capital		(0.03	)		—			—			—			—

Total distributions		(0.74	)		—			—			—			—

Net asset value, end of period	$	42.94		$	44.49		$	35.34		$	43.41		$	63.42

Total return		(2.01	)%		25.89	%		(18.59	)%		(31.55	)%		(45.60	)%^b

Ratios/Supplemental data:
Net assets, end of period (000s)	$	395,005		$	322,536		$	231,501		$	141,073		$	110,990
Ratio of expenses to average net assets^c		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%
Ratio of net investment income (loss) to average net assets^c		1.78	%		(0.22	)%		(0.22	)%		(0.41	)%		(0.47	)%
Portfolio turnover rate^d		9	%		5	%		15	%		8	%		11	%

^a	Commencement of operations.

^b	Not annualized.

^c	Annualized for periods of less than one year.

^d	Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.


FINANCIAL HIGHLIGHTS		93

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)


	*iShares Dow Jones U.S. Telecommunications Sector Index Fund*
	Year ended Apr. 30, 2005			Year ended Apr. 30, 2004			Year ended Apr. 30, 2003			Year ended Apr. 30, 2002			Period from May 22, 2000^a to Apr. 30, 2001
Net asset value, beginning of period	$	21.58		$	18.43		$	22.38		$	38.35		$	56.81

Income from investment operations:
Net investment income		0.64			0.45			0.34			0.29			0.35
Net realized and unrealized gain (loss)		1.35			3.15			(3.98	)		(15.98	)		(17.95	)

Total from investment operations		1.99			3.60			(3.64	)		(15.69	)		(17.60	)

Less distributions from:
Net investment income		(0.61	)		(0.45	)		(0.31	)		(0.28	)		(0.27	)
Net realized gain		—			—			—			—			(0.59	)

Total distributions		(0.61	)		(0.45	)		(0.31	)		(0.28	)		(0.86	)

Net asset value, end of period	$	22.96		$	21.58		$	18.43		$	22.38		$	38.35

Total return		9.26	%		19.71	%		(16.22	)%		(41.12	)%		(31.06	)%^b

Ratios/Supplemental data:
Net assets, end of period (000s)	$	313,378		$	215,757		$	126,245		$	51,463		$	55,603
Ratio of expenses to average net assets^c		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%
Ratio of net investment income to average net assets^c		2.97	%		2.27	%		2.27	%		1.05	%		0.80	%
Portfolio turnover rate^d		10	%		22	%		23	%		43	%		43	%

^a	Commencement of operations.

^b	Not annualized.

^c	Annualized for periods of less than one year.

^d	Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.


94		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)


	*iShares Dow Jones U.S. Utilities Sector Index Fund*
	Year ended Apr. 30, 2005			Year ended Apr. 30, 2004			Year ended Apr. 30, 2003			Year ended Apr. 30, 2002			Period from Jun. 12, 2000^a to Apr. 30, 2001
Net asset value, beginning of period	$	57.58		$	49.11		$	65.75		$	85.95		$	69.81

Income from investment operations:
Net investment income		1.99			1.87			2.04			1.89			1.82
Net realized and unrealized gain (loss)		15.41			8.47			(16.61	)		(20.25	)		16.19

Total from investment operations		17.40			10.34			(14.57	)		(18.36	)		18.01

Less distributions from:
Net investment income		(2.00	)		(1.87	)		(2.07	)		(1.84	)		(1.73	)
Net realized gain		—			—			—			—			(0.14	)

Total distributions		(2.00	)		(1.87	)		(2.07	)		(1.84	)		(1.87	)

Net asset value, end of period	$	72.98		$	57.58		$	49.11		$	65.75		$	85.95

Total return		30.71	%		21.28	%		(22.16	)%		(21.38	)%		25.90	%^b

Ratios/Supplemental data:
Net assets, end of period (000s)	$	645,868		$	440,490		$	329,055		$	180,818		$	42,976
Ratio of expenses to average net assets^c		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%
Ratio of net investment income to average net assets^c		3.10	%		3.41	%		4.15	%		2.89	%		2.59	%
Portfolio turnover rate^d		7	%		7	%		15	%		8	%		11	%

^a	Commencement of operations.

^b	Not annualized.

^c	Annualized for periods of less than one year.

^d	Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.


FINANCIAL HIGHLIGHTS		95

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)


	*iShares Dow Jones* *Select Dividend* *Index Fund*
	Year ended Apr. 30, 2005			Period from Nov. 3, 2003^a to Apr. 30, 2004
Net asset value, beginning of period	$	53.64		$	50.51

Income from investment operations:
Net investment income		1.92			0.76
Net realized and unrealized gain		5.94			3.12

Total from investment operations		7.86			3.88

Less distributions from:
Net investment income		(1.90	)		(0.75	)

Total distributions		(1.90	)		(0.75	)

Net asset value, end of period	$	59.60		$	53.64

Total return		14.81	%		7.70	%^b

Ratios/Supplemental data:
Net assets, end of period (000s)	$	6,371,480		$	1,939,177
Ratio of expenses to average net assets^c		0.40	%		0.40	%
Ratio of net investment income to average net assets^c		3.39	%		3.43	%
Portfolio turnover rate^d		20	%		2	%

^a	Commencement of operations.

^b	Not annualized.

^c	Annualized for periods of less than one year.

^d	Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.


96		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)


	*iShares Dow Jones* *Transportation Average* *Index Fund*
	Year ended Apr. 30, 2005			Period from Oct. 6, 2003^a to Apr. 30, 2004
Net asset value, beginning of period	$	51.90		$	50.22

Income from investment operations:
Net investment income		0.34			0.39
Net realized and unrealized gain		9.74			1.72

Total from investment operations		10.08			2.11

Less distributions from:
Net investment income		(0.33	)		(0.32	)
Return of capital		(0.03	)		(0.11	)

Total distributions		(0.36	)		(0.43	)

Net asset value, end of period	$	61.62		$	51.90

Total return		19.42	%		4.19	%^b

Ratios/Supplemental data:
Net assets, end of period (000s)	$	107,840		$	23,354
Ratio of expenses to average net assets^c		0.60	%		0.60	%
Ratio of net investment income to average net assets^c		0.54	%		0.43	%
Portfolio turnover rate^d		5	%		4	%

^a	Commencement of operations.

^b	Not annualized.

^c	Annualized for periods of less than one year.

^d	Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.


FINANCIAL HIGHLIGHTS		97

Notes to the Financial Statements

iSHARES^® TRUST

1. SIGNIFICANT ACCOUNTING POLICIES

These financial statements relate only to the iShares Dow Jones U.S. Total Market, iShares Dow Jones U.S. Energy Sector, iShares Dow Jones U.S. Healthcare Sector, iShares Dow Jones U.S. Technology Sector, iShares Dow Jones U.S. Telecommunications Sector, iShares Dow Jones U.S. Utilities Sector, iShares Dow Jones Select Dividend and the iShares Dow Jones Transportation Average Index Funds (each a “Fund,” collectively the “Funds”).

The investment objective of each Fund is to seek investment results that correspond generally to the price and yield performance, before fees and expenses, of its underlying index, as indicated in the name of each Fund. The investment adviser uses a “passive” or index approach to achieve each Fund’s investment objective. Each of the Funds is classified as a non-diversified fund under the 1940 Act, except for the iShares Dow Jones U.S. Total Market and iShares Dow Jones Select Dividend Index Funds, which are classified as diversified funds. Non-diversified funds generally hold securities of fewer companies than diversified funds and may be more susceptible to the risks associated with these particular companies, or to a single economic, political or regulatory occurrence affecting these companies.

SECURITY VALUATION

SECURITY TRANSACTIONS AND INCOME RECOGNITION


98		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to the Financial Statements (Continued)

iSHARES^® TRUST

EQUALIZATION

The iShares Dow Jones U.S. Utilities Sector and iShares Dow Jones Select Dividend Index Funds use the accounting practice of equalization. This accounting method is used to keep the continuing shareholders’ per share equity in undistributed net investment income from being affected by the continuous sales and redemptions of capital stock. Equalization is calculated on a per share basis whereby a portion of the proceeds from sales and costs of repurchases of capital stock is applied to undistributed net investment income. The amount of equalization is disclosed in the Statements of Changes in Net Assets as undistributed net investment income (loss) included in the price of capital shares issued or redeemed.

DISTRIBUTIONS TO SHAREHOLDERS

As of April 30, 2005, the tax year-end of the Funds, the components of distributable earnings (accumulated losses) on a tax basis were as follows:


*iShares Index Fund*	Undistributed Ordinary Income		Unrealized Appreciation (Depreciation)			Capital and Other Losses			*Net* Distributable Earnings (Accumulated Losses)
Dow Jones U.S. Total Market	$	481,241	$	41,031,923		$	(6,970,752	)	$	34,542,412
Dow Jones U.S. Energy Sector		—		139,536,370			(3,445,349	)		136,091,021
Dow Jones U.S. Healthcare Sector		122,203		13,147,779			(799,884	)		12,470,098
Dow Jones U.S. Technology Sector		—		(90,432,199	)		(22,109,433	)		(112,541,632	)
Dow Jones U.S. Telecommunications Sector		1,826,072		(13,736,553	)		(24,441,275	)		(36,351,756	)
Dow Jones U.S. Utilities Sector		730,138		117,787,238			(16,460,282	)		102,057,094
Dow Jones Select Dividend		3,467,935		108,142,933			(28,932,668	)		82,678,200
Dow Jones Transportation Average		—		(9,108,830	)		(206,601	)		(9,315,431	)

FEDERAL INCOME TAXES


NOTES TO THE FINANCIAL STATEMENTS		99

Notes to the Financial Statements (Continued)

iSHARES^® TRUST


*iShares Index Fund*	*Deferred* *Net Realized* *Capital Losses*
Dow Jones U.S. Total Market	$	233,145
Dow Jones U.S. Technology Sector		3,690,064
Dow Jones U.S. Telecommunications Sector		404,555
Dow Jones U.S. Utilities Sector		805,652
Dow Jones Select Dividend		28,089,675

The Funds had tax basis net capital loss carryforwards as of April 30, 2005, the tax year-end of the Funds, as follows:


*iShares Index Fund*	*Expiring* *2010*		*Expiring* *2011*		Expiring 2012		Expiring 2013		*Total*
Dow Jones U.S. Total Market	$	2,220,191	$	2,507,100	$	728,202	$	1,282,114	$	6,737,607
Dow Jones U.S. Energy Sector		—		3,320,390		124,959		—		3,445,349
Dow Jones U.S. Healthcare Sector		—		—		799,884		—		799,884
Dow Jones U.S. Technology Sector		3,803,426		10,610,555		1,952,962		2,052,426		18,419,369
Dow Jones U.S. Telecommunications Sector		10,297,961		12,363,187		998,718		376,854		24,036,720
Dow Jones U.S. Utilities Sector		165,391		5,246,921		8,539,740		1,702,578		15,654,630
Dow Jones Select Dividend		—		—		—		842,993		842,993
Dow Jones Transportation Average		—		—		—		206,601		206,601

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

For the year ended April 30, 2005, certain Funds realized net capital gains or losses resulting from in-kind redemptions of large blocks of shares or multiples thereof (“Creation Units”). Because such gains or losses are not taxable to the Funds, and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gains or losses to paid-in-capital at the end of the Funds’ tax year. These reclassifications have no effect on net assets or net asset values per share. The net realized in-kind gains or losses for the year ended April 30, 2005 are disclosed in the Funds’ Statements of Operations.


100		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to the Financial Statements (Continued)

iSHARES^® TRUST

As of April 30, 2005, the aggregate unrealized appreciation and depreciation based on cost for federal income tax purposes were as follows:


*iShares Index Fund*	*Tax Cost*		Unrealized Appreciation		Unrealized Depreciation			Net Unrealized Appreciation (Depreciation)
Dow Jones U.S. Total Market	$	403,646,782	$	65,415,847	$	(24,383,924	)	$	41,031,923
Dow Jones U.S. Energy Sector		549,476,288		139,751,465		(215,095	)		139,536,370
Dow Jones U.S. Healthcare Sector		1,241,958,625		107,681,411		(94,533,632	)		13,147,779
Dow Jones U.S. Technology Sector		514,711,564		—		(90,432,199	)		(90,432,199	)
Dow Jones U.S. Telecommunications Sector		351,478,299		11,214,941		(24,951,494	)		(13,736,553	)
Dow Jones U.S. Utilities Sector		604,642,315		122,400,240		(4,613,002	)		117,787,238
Dow Jones Select Dividend		6,246,857,469		285,387,429		(177,244,496	)		108,142,933
Dow Jones Transportation Average		129,895,971		598,401		(9,707,231	)		(9,108,830	)

REPURCHASE AGREEMENTS

Each Fund may enter into repurchase agreements with banks and securities dealers. These transactions involve the purchase of securities with a simultaneous commitment to resell the securities to the bank or the dealer at an agreed-upon date and price. A repurchase agreement is accounted for as an investment by the Fund, collateralized by securities, which are delivered to the Fund’s custodian or to an agent bank under a tri-party agreement. The securities are marked-to-market daily and additional securities are acquired as needed, to ensure that their value equals or exceeds the repurchase price plus accrued interest. As of April 30, 2005, a portion of the cash collateral for securities on loan for certain Funds was invested in repurchase agreements as disclosed in each Fund’s Schedule of Investments. For further information, see Note 5, below.

2. AGREEMENTS AND OTHER TRANSACTIONS WITH AFFILIATES

For its investment advisory services to each Fund, BGFA is entitled to an annual investment advisory fee based on the average daily net assets of each Fund as follows:


*iShares Index Fund*	Investment Advisory Fee
Dow Jones U.S. Total Market	0.20	%
Dow Jones U.S. Energy Sector	0.60
Dow Jones U.S. Healthcare Sector	0.60
Dow Jones U.S. Technology Sector	0.60
Dow Jones U.S. Telecommunications Sector	0.60
Dow Jones U.S. Utilities Sector	0.60
Dow Jones Select Dividend	0.40
Dow Jones Transportation Average	0.60


NOTES TO THE FINANCIAL STATEMENTS		101

Notes to the Financial Statements (Continued)

iSHARES^® TRUST


*iShares Index Fund*	Securities Lending Agent Fees
Dow Jones U.S. Total Market	$	35,827
Dow Jones U.S. Energy Sector		30,080
Dow Jones U.S. Healthcare Sector		78,494
Dow Jones U.S. Technology Sector		28,974
Dow Jones U.S. Telecommunications Sector		37,589
Dow Jones U.S. Utilities Sector		75,155
Dow Jones Select Dividend		140
Dow Jones Transportation Average		30,974

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


102		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to the Financial Statements (Continued)

iSHARES^® TRUST


*iShares Index Fund and* *Name of Affiliated Issuer*	Number of Shares Held Beginning of Year *(in 000s)*	Gross Additions (in 000s)	Gross Reductions (in 000s)	Number of Shares Held End of Year (in 000s)	*Value at* *End of Year*		Interest Income
Dow Jones U.S. Total Market
IMMF	314	34,414	34,091	637	$	637,127	$	5,744
Dow Jones U.S. Energy Sector
IMMF	336	32,714	32,778	272		272,286		5,424
Dow Jones U.S. Healthcare Sector
IMMF	268	53,151	52,588	831		831,058		8,921
Dow Jones U.S. Technology Sector
IMMF	44	25,125	24,786	383		382,793		4,377
Dow Jones U.S. Telecommunications Sector
IMMF	258	32,180	32,108	330		330,162		4,310
Dow Jones U.S. Utilities Sector
IMMF	182	60,117	59,665	634		634,153		9,210
Dow Jones Select Dividend
IMMF	1,715	1,004,133	993,605	12,243		12,243,162		135,174
Dow Jones Transportation Average
IMMF	20	8,252	8,150	122		121,616		1,321

3. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the year ended April 30, 2005 were as follows:


*iShares Index Fund*	*Purchases*		*Sales*
Dow Jones U.S. Total Market	$	23,672,981	$	23,265,262
Dow Jones U.S. Energy Sector		15,070,370		13,662,319
Dow Jones U.S. Healthcare Sector		33,043,089		31,855,255
Dow Jones U.S. Technology Sector		34,508,136		34,866,313
Dow Jones U.S. Telecommunications Sector		31,266,622		30,252,759
Dow Jones U.S. Utilities Sector		35,711,623		35,763,548
Dow Jones Select Dividend		840,581,386		808,573,374
Dow Jones Transportation Average		4,135,399		4,154,638


NOTES TO THE FINANCIAL STATEMENTS		103

Notes to the Financial Statements (Continued)

iSHARES^® TRUST

In-kind transactions (see Note 4) for the year ended April 30, 2005 were as follows:


*iShares Index Fund*	*In-kind Purchases*		*In-kind Sales*
Dow Jones U.S. Total Market	$	13,943,749	$	—
Dow Jones U.S. Energy Sector		207,541,910		40,262,452
Dow Jones U.S. Healthcare Sector		576,877,331		95,893,736
Dow Jones U.S. Technology Sector		163,243,912		72,170,679
Dow Jones U.S. Telecommunications Sector		233,611,686		152,992,863
Dow Jones U.S. Utilities Sector		181,278,598		102,574,254
Dow Jones Select Dividend		5,099,230,640		1,006,655,459
Dow Jones Transportation Average		291,385,117		217,066,284

4. CAPITAL SHARE TRANSACTIONS

5. LOANS OF PORTFOLIO SECURITIES

As of April 30, 2005, certain Funds had loaned securities which were collateralized by cash. The cash collateral received was invested in a joint account with other investment funds managed by BGFA. The joint account invests in securities with remaining maturities of 397 days or less, repurchase agreements and money market mutual funds, including money market funds managed by BGFA. Repurchase agreements held in the joint account are fully collateralized by U.S. Government securities. Income from the joint account is allocated daily to each Fund, based on each Fund’s portion of the total cash collateral received. The market value of the securities on loan as of April 30, 2005 and the value of the related collateral are disclosed in the Statements of Assets and Liabilities. Securities lending income, which is disclosed in the Funds’ Statements of Operations, is presented net of rebates paid to, or fees paid by, borrowers.


104		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Trustees of iShares Trust:

In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of the funds comprising the iShares Dow Jones Index Funds (the “Funds”), as listed on the table of contents, at April 30, 2005, the results of each of their operations for the year then ended, and the changes in each of their net assets and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards which require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at April 30, 2005 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California

June 20, 2005


REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM		105

Tax Information (Unaudited)

iSHARES^® TRUST

For corporate shareholders, a portion of the income dividends paid by the Funds during the year ended April 30, 2005 qualified for the dividends-received deduction, as follows:


*iShares Index Fund*	*Dividends-* Received Deduction
Dow Jones U.S. Total Market	100.00	%
Dow Jones U.S. Energy Sector	100.00
Dow Jones U.S. Healthcare Sector	100.00
Dow Jones U.S. Technology Sector	100.00
Dow Jones U.S. Telecommunications Sector	100.00
Dow Jones U.S. Utilities Sector	100.00
Dow Jones Select Dividend	100.00
Dow Jones Transportation Average	100.00

Under Section 854(b)(2) of the Internal Revenue Code (the “Code”), the Funds hereby designate the following maximum amounts as qualified dividends for purposes of the maximum rate under Section 1(h)(11) of the Code for the year ended April 30, 2005:


*iShares Index Fund*	Qualified Dividend Income
Dow Jones U.S. Total Market	$	6,955,435
Dow Jones U.S. Energy Sector		5,632,802
Dow Jones U.S. Healthcare Sector		5,912,842
Dow Jones U.S. Technology Sector		6,667,026
Dow Jones U.S. Telecommunications Sector		8,624,666
Dow Jones U.S. Utilities Sector		15,627,273
Dow Jones Select Dividend		136,407,958
Dow Jones Transportation Average		449,731


106		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited)

iSHARES^® TRUST

The following information shows the frequency distributions of premiums and discounts for each of the iShares Funds included in this report. The information shown for each Fund is for each full calendar quarter completed after the inception date of such Fund through March 31, 2005, the date of the most recent calendar quarter-end. The specific periods covered for each Fund are disclosed in the table for such Fund.

iShares Dow Jones U.S. Total Market Index Fund

Period Covered: July 1, 2000 through March 31, 2005


*Premium/Discount Range*	Number of Days	*Percentage of* *Total Days*
Greater than 0.5%	12	1.01	%
Between 0.5% and –0.5%	1,155	97.21
Less than –0.5% and Greater than –1.0%	17	1.44
Less than –1.0%	4	0.34

	1,188	100.00	%

iShares Dow Jones U.S. Energy Sector Index Fund

Period Covered: July 1, 2000 through March 31, 2005


*Premium/Discount Range*	Number of Days	Percentage of Total Days
Greater than 1.0%	1	0.08	%
Greater than 0.5% and Less than 1.0%	10	0.84
Between 0.5% and –0.5%	1,167	98.24
Less than –0.5%	10	0.84

	1,188	100.00	%


SUPPLEMENTAL INFORMATION		107

Supplemental Information (Unaudited) (Continued)

iSHARES^® TRUST

iShares Dow Jones U.S. Healthcare Sector Index Fund

Period Covered: July 1, 2000 through March 31, 2005


*Premium/Discount Range*	Number of Days	*Percentage of* *Total Days*
Greater than 0.5%	9	0.76	%
Between 0.5% and –0.5%	1,166	98.14
Less than –0.5% and Greater than –1.0%	7	0.59
Less than –1.0%	6	0.51

	1,188	100.00	%

iShares Dow Jones U.S. Technology Sector Index Fund

Period Covered: July 1, 2000 through March 31, 2005


*Premium/Discount Range*	Number of Days	*Percentage of* *Total Days*
Greater than 1.0%	6	0.51	%
Greater than 0.5% and Less than 1.0%	37	3.11
Between 0.5% and –0.5%	1,100	92.60
Less than –0.5% and Greater than –1.0%	27	2.26
Less than –1.0% and Greater than –1.5%	8	0.67
Less than –1.5% and Greater than –2.0%	4	0.34
Less than –2.0%	6	0.51

	1,188	100.00	%

iShares Dow Jones U.S. Telecommunications Sector Index Fund

Period Covered: July 1, 2000 through March 31, 2005


*Premium/Discount Range*	Number of Days	*Percentage of* *Total Days*
Greater than 1.0%	1	0.08	%
Greater than 0.5% and Less than 1.0%	49	4.12
Between 0.5% and –0.5%	1,101	92.69
Less than –0.5% and Greater than –1.0%	27	2.27
Less than –1.0%	10	0.84

	1,188	100.00	%


108		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^® TRUST

iShares Dow Jones U.S. Utilities Sector Index Fund

Period Covered: July 1, 2000 through March 31, 2005


*Premium/Discount Range*	Number of Days	*Percentage of* *Total Days*
Greater than 0.5%	15	1.26	%
Between 0.5% and –0.5%	1,164	97.98
Less than –0.5%	9	0.76

	1,188	100.00	%

iShares Dow Jones Select Dividend Index Fund

Period Covered: January 1, 2004 through March 31, 2005


*Premium/Discount Range*	Number of Days	*Percentage of* *Total Days*
Greater than 0.5%	5	1.60	%
Between 0.5% and –0.5%	308	98.40

	313	100.00	%

iShares Dow Jones Transportation Average Index Fund

Period Covered: January 1, 2004 through March 31, 2005


*Premium/Discount Range*	Number of Days	*Percentage of* *Total Days*
Between 0.5% and –0.5%	312	99.68	%
Less than –0.5%	1	0.32

	313	100.00	%


SUPPLEMENTAL INFORMATION		109

Trustee Information (Unaudited)

iSHARES^® TRUST

Interested Trustees


Name, Year of Birth	Position(s), Length of Service	Principal Occupation(s) During Past 5 Years	Other Directorships Held
*Lee T. Kranefuss, 1961	Trustee, Chairman, and President (since June 18, 2003).	Chief Executive Officer of Intermediary Investor and Exchange Traded Products Business of BGI (since 2003); Chief Executive Officer of the Individual Investor Business of BGI (1997-2003).	Director (since 2003) of iShares, Inc.; Trustee (since 2001) of Barclays Global Investors Funds and Master Investment Portfolio; Trustee (since 2003) of BGI Cayman Prime Money Market Fund; Director (since 2003) of iShares PLC and EETF PLC (Dublin).

*John E. Martinez, 1962	Trustee (since December 5, 2003).	Co-CEO of Global Index and Markets Group of BGI (2001-2003); Chairman of Barclays Global Investors Services (2000-2003); CEO of Capital Markets Group of BGI (1996-2001).	Director (since 2005) of Real Estate Equity Exchange; Director (since 2003) of Larkin Street Youth Services; Director (2000-2002) of Barclays Global Investors UK Holdings.

*	Lee T. Kranefuss and John E. Martinez are considered to be “interested persons” (as defined in the 1940 Act) of the Trust due to their affiliations with BGFA, the Funds’ investment adviser, and BGFA’s affiliates.


110		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Trustee Information (Unaudited) (Continued)

iSHARES^® TRUST

Independent Trustees


Name, Year of Birth	Position(s), Length of Service	Principal Occupation(s) During Past 5 Years	Other Directorships Held
Richard K. Lyons, 1961	Trustee (since February 15, 2000).	Acting Dean (since 2004) and Sylvan Coleman Professor of Finance (since 1993) University of California, Berkeley: Haas School of Business; Consultant for IMF World Bank, Federal Reserve Bank, and Citibank N.A. (since 2000).	Director (since 2003) of the BGI Cayman Prime Money Market Fund, Ltd.; Trustee (since 2001) of Master Investment Portfolio and Barclays Global Investors Funds; Director (since 2002) of iShares, Inc.; Trustee and Chairman (since 1995) of Matthews Asian Funds (oversees 6 portfolios).

George G. C. Parker, 1939	Trustee (since February 15, 2000).	Dean Witter Distinguished Professor of Finance (since 1994); Senior Associate Dean for Academic Affairs, Director of MBA Program, Stanford University: Graduate School of Business (1993-2001).	Director (since 2002) of iShares, Inc.; Director (since 1998) of Affinity Group Holdings; Director (since 1985) of Bailard, Biehl and Kaiser, Inc.; Director (since 1978) of California Casualty Group of Insurance Companies; Director (since 1996) of Continental Airlines, Inc.; Director (since 1996) of Community First Financial Group; Director (since 1999) of Tejon Ranch Company; Director (since 2003) of First Republic Bank; Director (since 2000) of Converium Re-Insurance; Director (since 2004) of Threshold Pharmaceuticals.


TRUSTEE INFORMATION		111

Trustee Information (Unaudited) (Continued)

iSHARES^® TRUST

Independent Trustees (continued)

Name, Year of Birth

Position(s),

Length of
Service

Principal Occupation(s)

During Past 5 Years

Other Directorships Held

W. Allen Reed, 1947

Trustee (since January 1, 2002).

President and Chief Executive Officer of General Motors Investment Management Corporation (since 1994); Chief Executive Officer of General Motors Trust Bank (since 2003); Chief Executive Officer of General Motors Trust Company (since 1999).

Director (since 1996) of iShares, Inc.; Director (since 1994) of General Motors Investment Management Corporation; Director and Chairman (since 2003) of General Motors Trust Bank; Director and Chairman (since 1999) of General Motors Trust Company; Director (since 2002) of GMAM ARS Fund I; Director (since 1994) of General Motors Acceptance Corporation; Director (since 1994) of GMAC Insurance Holdings, Inc.; Director (since 1995) of Global Emerging Markets Fund; Director (since 2000) of Temple Inland Industries; Member (since 2004) of Board of Executives of New York Stock Exchange; Member (since 1995) of New York State Retirement System Advisory Board; Member (since 2004) of the Auburn University Foundation Fund Investment Committee.

Officer

Name, Year of Birth

Position(s),
Length of Service

Principal Occupation(s)

During Past 5 Years

Other Directorships Held

Michael A. Latham, 1965

Secretary, Treasurer and Principal Financial Officer (since February 28, 2002).

None.


112		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes:


NOTES		113

The iShares^® Family of Funds

iShares S&P Domestic Index Funds

iShares S&P 1500 (ISI)

iShares S&P 500 (IVV)

iShares S&P 500/BARRA Growth (IVW)

iShares S&P 500/BARRA Value (IVE)

iShares S&P MidCap 400 (IJH)

iShares S&P MidCap 400/BARRA Growth (IJK)

iShares S&P MidCap 400/BARRA Value (IJJ)

iShares S&P SmallCap 600 (IJR)

iShares S&P SmallCap 600/BARRA Growth (IJT)

iShares S&P SmallCap 600/BARRA Value (IJS)

iShares S&P 100 (OEF)

iShares Sector and Specialty Index Funds

iShares Cohen & Steers Realty Majors (ICF)

iShares Dow Jones Select Dividend (DVY)

iShares Dow Jones Transportation Average (IYT)

iShares Dow Jones U.S. Basic Materials Sector (IYM)

iShares Dow Jones U.S. Consumer Goods Sector (IYK)

iShares Dow Jones U.S. Consumer Services Sector (IYC)

iShares Dow Jones U.S. Energy Sector (IYE)

iShares Dow Jones U.S. Financial Sector (IYF)

iShares Dow Jones U.S. Financial Services (IYG)

iShares Dow Jones U.S. Healthcare Sector (IYH)

iShares Dow Jones U.S. Industrial Sector (IYJ)

iShares Dow Jones U.S. Real Estate (IYR)

iShares Dow Jones U.S. Technology Sector (IYW)

iShares Dow Jones U.S. Telecommunications Sector (IYZ)

iShares Dow Jones U.S. Total Market (IYY)

iShares Dow Jones U.S. Utilities Sector (IDU)

iShares Goldman Sachs Natural Resources (IGE)

iShares Goldman Sachs Networking (IGN)

iShares Goldman Sachs Semiconductor (IGW)

iShares Goldman Sachs Software (IGV)

iShares Goldman Sachs Technology (IGM)

iShares KLD Select Social^SM(KLD)

iShares Nasdaq Biotechnology (IBB)

iShares S&P Global Energy Sector (IXC)

iShares S&P Global Financials Sector (IXG)

iShares S&P Global Healthcare Sector (IXJ)

iShares S&P Global Technology Sector (IXN)

iShares S&P Global Telecommunications Sector (IXP)

iShares Russell Index Funds

iShares Russell 3000 (IWV)

iShares Russell 3000 Growth (IWZ)

iShares Russell 3000 Value (IWW)

iShares Russell 1000 (IWB)

iShares Russell 1000 Growth (IWF)

iShares Russell 1000 Value (IWD)

iShares Russell Midcap (IWR)

iShares Russell Midcap Growth (IWP)

iShares Russell Midcap Value (IWS)

iShares Russell 2000 (IWM)

iShares Russell 2000 Growth (IWO)

iShares Russell 2000 Value (IWN)

iShares International Index Funds

iShares FTSE/Xinhua China 25 (FXI)

iShares MSCI Australia (EWA)

iShares MSCI Austria (EWO)

iShares MSCI Belgium (EWK)

iShares MSCI Brazil (EWZ)

iShares MSCI Canada (EWC)

iShares MSCI EAFE (EFA)

iShares MSCI Emerging Markets (EEM)

iShares MSCI EMU (EZU)

iShares MSCI France (EWQ)

iShares MSCI Germany (EWG)

iShares MSCI Hong Kong (EWH)

iShares MSCI Italy (EWI)

iShares MSCI Japan (EWJ)

iShares MSCI Malaysia (EWM)

iShares MSCI Mexico (EWW)

iShares MSCI Netherlands (EWN)

iShares MSCI Pacific ex-Japan (EPP)

iShares MSCI Singapore (EWS)

iShares MSCI South Africa (EZA)

iShares MSCI South Korea (EWY)

iShares MSCI Spain (EWP)

iShares MSCI Sweden (EWD)

iShares MSCI Switzerland (EWL)

iShares MSCI Taiwan (EWT)

iShares MSCI United Kingdom (EWU)

iShares S&P Europe 350 (IEV)

iShares S&P Global 100 (IOO)

iShares S&P Latin America 40 (ILF)

iShares S&P/TOPIX 150 (ITF)

iShares Bond Funds

iShares GS $ InvesTop^™ Corporate (LQD)

iShares Lehman Aggregate (AGG)

iShares Lehman TIPS (TIP)

iShares Lehman 1-3 Year Treasury (SHY)

iShares Lehman 7-10 Year Treasury (IEF)

iShares Lehman 20+ Year Treasury (TLT)

iShares NYSE Index Funds

iShares NYSE 100 (NY)

iShares NYSE Composite (NYC)

iShares Morningstar Index Funds

iShares Morningstar Large Core (JKD)

iShares Morningstar Large Growth (JKE)

iShares Morningstar Large Value (JKF)

iShares Morningstar Mid Core (JKG)

iShares Morningstar Mid Growth (JKH)

iShares Morningstar Mid Value (JKI)

iShares Morningstar Small Core (JKJ)

iShares Morningstar Small Growth (JKK)

iShares Morningstar Small Value (JKL)

An investment in the Fund(s) is not a deposit of a bank and it is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.

This advertising section does not constitute part of the 2005 Annual Report.

1667-iS-0505


114		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

The iShares Funds are not sponsored, endorsed, issued, sold or promoted by Dow Jones & Company, Inc., nor does this company make any representation regarding the advisability of investing in the iShares Funds.

Investing involves risk, including possible loss of principal.

The Funds file their complete schedules of portfolio holdings with the Securities and Exchange Commission for the first and third quarter of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the Commission’s website www.sec.gov. When filed, the Funds’ Forms N-Q may be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1 800 SEC 0330. The Funds also disclose their complete schedules of portfolio holdings on a daily and monthly basis on the Funds’ website at www.iShares.com.

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

BGI-F-015-26005

Item 1.

Reports to Stockholders

LOGO

iShares^®

Dear iShares Shareholder:

To sign up for electronic delivery, please follow these simple steps:

1.	Go to www.icsdelivery.com.

2.	From the main page, select the first letter of your brokerage firm’s name.

3.	Select your brokerage institution from the list that follows. If your brokerage firm is not listed, electronic delivery may not be available. Please contact your brokerage firm or financial adviser.

4.	Fill out the appropriate information and provide the e-mail address where you would like your information sent.

Table of Contents


Management’s Discussion of Fund Performance		1
Shareholder Expenses		13
Schedules of Investments		15
iShares Morningstar Large Core Index Fund		15
iShares Morningstar Large Growth Index Fund		21
iShares Morningstar Large Value Index Fund		27
iShares Morningstar Mid Core Index Fund		33
iShares Morningstar Mid Growth Index Fund		42
iShares Morningstar Mid Value Index Fund		50
iShares Morningstar Small Core Index Fund		58
iShares Morningstar Small Growth Index Fund		68
iShares Morningstar Small Value Index Fund		77
Financial Statements		87
Financial Highlights		93
Notes to the Financial Statements		95
Report of Independent Registered Public Accounting Firm		103
Tax Information (Unaudited)		104
Supplemental Information (Unaudited)		105
Trustee Information (Unaudited)		107
iShares Family of Funds		110

Management’s Discussion of Fund Performance

iSHARES^® MORNINGSTAR LARGE CORE INDEX FUND

iSHARES^® MORNINGSTAR LARGE GROWTH INDEX FUND

iSHARES^® MORNINGSTAR LARGE VALUE INDEX FUND

Performance as of 4/30/05


	Cumulative Total Returns
	*Inception to 4/30/05*
*iSHARES INDEX FUND*	*NAV*		*MARKET*		*INDEX*
Morningstar Large Core	5.62	%	5.49	%	5.81	%
Morningstar Large Growth	(7.04	)%	(7.12	)%	(6.89	)%
Morningstar Large Value	10.33	%	10.18	%	10.54	%

“Cumulative total returns” represent the total change in value of an investment over the period indicated and is calculated from the inception date of each Fund (6/28/04).

Each Fund’s per share net asset value or “NAV” is the value of one share of such Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of each Fund, and the market return is based on the market price per share of each Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which shares of the Funds are listed for trading, as of the time that the Funds’ NAV is calculated. Since shares of each Fund did not trade in the secondary market until several days after each Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (7/2/04), the NAV of each Fund is used as a proxy for the secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in each Fund at Market Price and NAV, respectively.

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

GROWTH OF $10,000 INVESTMENT

SINCE INCEPTION AT NET ASSET VALUE

LOGO

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


MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE		1

The iShares Morningstar Large Core Index Fund (the “Core Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Morningstar Large Core Index (the “Core Index”). The Core Index measures the performance of large-capitalization companies that have exhibited both “growth” and “value” characteristics without a pronounced bias toward either, as determined by Morningstar’s proprietary index methodology. The Core Fund invests in a representative sample of securities in the Core Index, which have a similar investment profile as the Core Index. From its inception on June 28, 2004 through April 30, 2005 (the “reporting period”), the Core Fund returned 5.62%, while the Core Index returned 5.81%.


PORTFOLIO ALLOCATION As of 4/30/05
*Sector*	% of Net Assets
Consumer Non-Cyclical	36.14	%
Industrial	23.13
Financial	14.84
Consumer Cyclical	6.84
Communications	6.71
Technology	6.67
Basic Materials	3.06
Energy	1.78
Utilities	0.75
Short-Term and Other Net Assets	0.08

TOTAL	100.00	%


TOP TEN FUND HOLDINGS As of 4/30/05
*Security*	% of Net Assets
General Electric Co.	11.40	%
Pfizer Inc.	6.10
Johnson & Johnson	6.07
Procter & Gamble Co.	4.07
International Business Machines Corp.	3.79
American International Group Inc.	3.47
Wells Fargo & Co.	3.02
Coca-Cola Co. (The)	2.88
PepsiCo Inc.	2.79
Home Depot Inc.	2.31

TOTAL	45.90	%

The iShares Morningstar Large Growth Index Fund (the “Growth Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Morningstar Large Growth Index (the “Growth Index”). The Growth Index measures the performance of large-capitalization companies that have exhibited above-average “growth” characteristics as determined by Morningstar’s proprietary index methodology. The Growth Fund invests in a representative sample of securities in the Growth Index, which have a similar investment profile as the Growth Index. For the reporting period, the Growth Fund declined 7.04%, while the Growth Index declined 6.89%.


PORTFOLIO ALLOCATION As of 4/30/05
*Sector*	% of Net Assets
Technology	30.26	%
Consumer Non-Cyclical	23.88
Communications	22.71
Consumer Cyclical	16.25
Energy	2.84
Industrial	2.74
Financial	1.30
Short-Term and Other Net Assets	0.02

TOTAL	100.00	%


TOP TEN FUND HOLDINGS As of 4/30/05
*Security*	% of Net Assets
Microsoft Corp.	9.93	%
Intel Corp.	6.03
Wal-Mart Stores Inc.	5.00
Cisco Systems Inc.	4.62
Dell Inc.	3.09
Time Warner Inc.	3.01
Amgen Inc.	3.00
Medtronic Inc.	2.58
UnitedHealth Group Inc.	2.50
QUALCOMM Inc.	2.33

TOTAL	42.09	%


2		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

The iShares Morningstar Large Value Index Fund (the “Value Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Morningstar Large Value Index (the “Value Index”). The Value Index measures the performance of large-capitalization companies that have exhibited “value” characteristics as determined by Morningstar’s proprietary index methodology. The Value Fund invests in a representative sample of securities in the Value Index, which have a similar investment profile as the Value Index. For the reporting period, the Value Fund returned 10.33%, while the Value Index returned 10.54%.


PORTFOLIO ALLOCATION As of 4/30/05
*Sector*	% of Net Assets
Financial	40.87	%
Energy	19.83
Consumer Non-Cyclical	12.76
Communications	8.75
Utilities	6.91
Industrial	4.06
Basic Materials	3.08
Technology	2.42
Consumer Cyclical	1.18
Short-Term and Other Net Assets	0.14

TOTAL	100.00	%


TOP TEN FUND HOLDINGS As of 4/30/05
*Security*	% of Net Assets
Exxon Mobil Corp.	11.21	%
Citigroup Inc.	7.42
Bank of America Corp.	5.54
Altria Group Inc.	4.06
JP Morgan Chase & Co.	3.85
ChevronTexaco Corp.	3.18
Verizon Communications Inc.	3.02
Wachovia Corp.	2.48
SBC Communications Inc.	2.40
Merck & Co. Inc.	2.29

TOTAL	45.45	%

Despite some periodic volatility, the U.S. stock market posted positive results for the reporting period. Stocks fluctuated in a narrow range during the first few months of the reporting period as strong corporate earnings growth appeared to offset concerns about record-high oil prices and rising interest rates. However, the market enjoyed a post-election rally in November and December, rising sharply as oil prices fell and many investors appeared to grow confident that the Federal Reserve Board’s gradual series of short-term interest rate increases were keeping inflation in check and the economy on a moderate growth track.

The stock market grew choppy in early 2005, surrendering some of its late-2004 gains amid mixed economic data and evidence of rising inflation. Nonetheless, stocks gained ground overall for the reporting period. As represented by the Morningstar Indexes, mid-capitalization stocks produced the best results, followed by large-capitalization stocks and small-capitalization stocks. Value-oriented stocks significantly outperformed growth across all market capitalizations.

Among the Core Fund’s ten largest holdings as of April 30, 2005, four posted positive returns and six declined for the reporting period. The best performers were diversified health care giant Johnson & Johnson, which rallied on better-than-expected earnings and a well-received acquisition, and conglomerate General Electric Co., which improved earnings through successful cost management. The other positive performers were money center bank Wells Fargo & Co. and snack and beverage maker PepsiCo Inc. The biggest decliners included insurance firm American International Group Inc., which was under investigation for several improper insurance transactions, and pharmaceutical company Pfizer Inc., which pulled one of its most successful drugs off the market due to health concerns.


MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE		3

Six of the Value Fund’s top ten holdings as of April 30, 2005 produced gains for the reporting period. Tobacco maker Altria Group Inc. was the top performer due to increased market share and higher cigarette prices. Soaring oil prices lifted energy stocks Exxon Mobil Corp. and ChevronTexaco Corp., while bank Wachovia Corp. benefited from prudent acquisitions and cutting costs. The most noteworthy decliner among the top ten holdings was pharmaceutical giant Merck & Co. Inc., which recalled its top-selling pain-relief medication after it was linked to increased risk of heart attacks.

In the Growth Fund, just four of the ten largest holdings as of April 30, 2005 gained ground for the reporting period. Health services provider UnitedHealth Group Inc. posted the best results as a larger customer base and reduced operating costs boosted earnings. The other positive performers were biotechnology firm Amgen Inc., medical devices maker Medtronic Inc., and wireless chipmaker QUALCOMM Inc. The leading decliners were mostly technology stocks, including network equipment maker Cisco Systems Inc., semiconductor manufacturer Intel Corp., and software giant Microsoft Corp. Retailer Wal-Mart Stores Inc. was also among the weakest performers.


4		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance

iSHARES^® MORNINGSTAR MID CORE INDEX FUND

iSHARES^® MORNINGSTAR MID GROWTH INDEX FUND

iSHARES^® MORNINGSTAR MID VALUE INDEX FUND

Performance as of 4/30/05


	Cumulative Total Returns
	*Inception to 4/30/05*
*iSHARES INDEX FUND*	*NAV*		*MARKET*		*INDEX*
Morningstar Mid Core	6.46	%	6.31	%	6.73	%
Morningstar Mid Growth	5.52	%	5.37	%	5.76	%
Morningstar Mid Value	13.33	%	13.16	%	13.28	%

“Cumulative total returns” represent the total change in value of an investment over the period indicated and is calculated from the inception date of each Fund (6/28/04).

GROWTH OF $10,000 INVESTMENT

SINCE INCEPTION AT NET ASSET VALUE

LOGO

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


MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE		5

The iShares Morningstar Mid Core Index Fund (the “Core Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Morningstar Mid Core Index (the “Core Index”). The Core Index measures the performance of mid-capitalization companies that have exhibited both “growth” and “value” characteristics without a pronounced bias toward either, as determined by Morningstar’s proprietary index methodology. The Core Fund invests in a representative sample of securities in the Core Index, which have a similar investment profile as the Core Index. From its inception on June 28, 2004 through April 30, 2005 (the “reporting period”), the Core Fund returned 6.46%, while the Core Index returned 6.73%.


PORTFOLIO ALLOCATION As of 4/30/05
*Sector*	% of Net Assets
Financial	25.02	%
Consumer Cyclical	20.82
Industrial	19.45
Consumer Non-Cyclical	12.29
Technology	6.77
Communications	5.91
Energy	5.88
Basic Materials	3.11
Utilities	0.65
Short-Term and Other Net Assets	0.10

TOTAL	100.00	%


TOP TEN FUND HOLDINGS As of 4/30/05
*Security*	% of Net Assets
Sears Holdings Corp.	1.44	%
North Fork Bancorp Inc.	1.42
Williams Companies Inc.	1.10
D.R. Horton Inc.	1.03
Textron Inc.	1.02
General Growth Properties Inc.	0.99
ITT Industries Inc.	0.97
Marshall & Ilsley Corp.	0.95
Computer Sciences Corp.	0.95
American Standard Companies Inc.	0.93

TOTAL	10.80	%

The iShares Morningstar Mid Growth Index Fund (the “Growth Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Morningstar Mid Growth Index (the “Growth Index”). The Growth Index measures the performance of mid-capitalization companies that have exhibited above-average “growth” characteristics as determined by Morningstar’s proprietary index methodology. The Growth Fund invests in a representative sample of securities in the Growth Index, which have a similar investment profile as the Growth Index. For the reporting period, the Growth Fund returned 5.52%, while the Growth Index returned 5.76%.


PORTFOLIO ALLOCATION As of 4/30/05
*Sector*	% of Net Assets
Consumer Non-Cyclical	23.37	%
Technology	20.43
Consumer Cyclical	13.48
Energy	13.15
Communications	12.74
Industrial	8.36
Financial	6.21
Basic Materials	1.60
Diversified	0.32
Utilities	0.30
Short-Term and Other Net Assets	0.04

TOTAL	100.00	%


TOP TEN FUND HOLDINGS As of 4/30/05
*Security*	% of Net Assets
EOG Resources Inc.	1.33	%
XTO Energy Inc.	1.23
Coach Inc.	1.18
SunGard Data Systems Inc.	1.13
Network Appliance Inc.	1.12
Quest Diagnostics Inc.	0.97
Fiserv Inc.	0.97
L-3 Communications Holdings Inc.	0.96
Nabors Industries Ltd.	0.94
Hilton Hotels Corp.	0.92

TOTAL	10.75	%


6		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

The iShares Morningstar Mid Value Index Fund (the “Value Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Morningstar Mid Value Index (the “Value Index”). The Value Index measures the performance of mid-capitalization companies that have exhibited “value” characteristics as determined by Morningstar’s proprietary index methodology. The Value Fund invests in a representative sample of securities in the Value Index, which have a similar investment profile as the Value Index. For the reporting period, the Value Fund returned 13.33%, while the Value Index returned 13.28%.


PORTFOLIO ALLOCATION As of 4/30/05
*Sector*	% of Net Assets
Financial	35.18	%
Utilities	16.84
Consumer Non-Cyclical	13.12
Consumer Cyclical	11.12
Basic Materials	7.33
Industrial	6.18
Energy	6.12
Communications	2.78
Technology	0.91
Short-Term and Other Net Assets	0.42

TOTAL	100.00	%


TOP TEN FUND HOLDINGS As of 4/30/05
*Security*	% of Net Assets
CIGNA Corp.	1.41	%
AES Corp. (The)	1.16
PPL Corp.	1.14
May Department Stores Co. (The)	1.14
McKesson Corp.	1.13
Ameren Corp.	1.12
Federated Department Stores Inc.	1.10
Kerr-McGee Corp.	1.08
Equity Residential	1.07
Safeway Inc.	1.06

TOTAL	11.41	%

Nine of the Core Fund’s ten largest holdings as of April 30, 2005 posted positive results for the reporting period. The best performer was Sears Holdings Corp., which was acquired at a premium by Kmart. Other top performers were homebuilder D.R. Horton Inc., which continued to benefit from a robust housing market, and real estate investment trust General Growth Properties Inc., the largest owner and operator of regional shopping malls. The only decliner among the Core Fund’s ten biggest holdings was technology services provider Computer Sciences Corp., which reported lower than expected revenues.


MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE		7

The Value Fund also saw nine of its top ten holdings as of April 30, 2005 gain ground for the reporting period. The top performers were energy-related companies – independent power producer The AES Corp. and oil exploration company Kerr-McGee Corp. – that benefited from rising oil and gas prices. Health insurer CIGNA Corp. and retailer The May Department Stores Co. also posted strong gains for the reporting period. Grocery chain Safeway Inc., which faced labor struggles and reported lower-than-expected earnings in three consecutive quarters, was the only top ten holding to decline.

In the Growth Fund, all of its ten largest holdings as of April 30, 2005 produced gains for the reporting period. The two best performers were oil and gas exploration companies EOG Resources Inc. and XTO Energy Inc. Both stocks gained as they increased production to meet strong demand and take advantage of sharply higher energy prices. A couple of technology stocks also performed well, including data storage company Network Appliance Inc. and financial services software provider SunGard Data Systems Inc. The only two stocks among the Growth Fund’s ten largest holdings to post single-digit gains for the reporting period were financial services outsourcing company Fiserv Inc. and communications equipment maker L-3 Communications Holdings Inc.


8		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance

iSHARES^® MORNINGSTAR SMALL CORE INDEX FUND

iSHARES^® MORNINGSTAR SMALL GROWTH INDEX FUND

iSHARES^® MORNINGSTAR SMALL VALUE INDEX FUND

Performance as of 4/30/05


	Cumulative Total Returns
	*Inception to 4/30/05*
*iSHARES INDEX FUND*	*NAV*		*MARKET*		*INDEX*
Morningstar Small Core	4.56	%	4.38	%	4.70	%
Morningstar Small Growth	(5.36	)%	(5.66	)%	(5.18	)%
Morningstar Small Value	5.72	%	5.51	%	6.00	%

“Cumulative total returns” represent the total change in value of an investment over the period indicated and is calculated from the inception date of each Fund (6/28/04).

GROWTH OF $10,000 INVESTMENT

SINCE INCEPTION AT NET ASSET VALUE

LOGO

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


MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE		9

The iShares Morningstar Small Core Index Fund (the “Core Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Morningstar Small Core Index (the “Core Index”). The Core Index measures the performance of small-capitalization companies that have exhibited both “growth” and “value” characteristics without a pronounced bias toward either, as determined by Morningstar’s proprietary index methodology. The Core Fund invests in a representative sample of securities in the Core Index, which have a similar investment profile as the Core Index. From its inception on June 28, 2004 through April 30, 2005 (the “reporting period”), the Core Fund returned 4.56%, while the Core Index returned 4.70%.


PORTFOLIO ALLOCATION As of 4/30/05
*Sector*	% of Net Assets
Financial	20.54	%
Industrial	19.03
Consumer Non-Cyclical	18.32
Consumer Cyclical	16.16
Technology	8.86
Communications	6.83
Energy	6.61
Basic Materials	3.57
Short-Term and Other Net Assets	0.08

TOTAL	100.00	%


TOP TEN FUND HOLDINGS As of 4/30/05
*Security*	% of Net Assets
Joy Global Inc.	0.89	%
Accredo Health Inc.	0.75
Toro Co.	0.69
Affiliated Managers Group Inc.	0.63
Thomas & Betts Corp.	0.62
Donnelley (R.H.) Corp.	0.60
AMERIGROUP Corp.	0.60
Denbury Resources Inc.	0.59
Range Resources Corp.	0.57
OMI Corp.	0.57

TOTAL	6.51	%

The iShares Morningstar Small Growth Index Fund (the “Growth Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Morningstar Small Growth Index (the “Growth Index”). The Growth Index measures the performance of small-capitalization companies that have exhibited above-average “growth” characteristics as determined by Morningstar’s proprietary index methodology. The Growth Fund invests in a representative sample of securities in the Growth Index, which have a similar investment profile as the Growth Index. For the reporting period, the Growth Fund declined 5.36%, while the Growth Index declined 5.18%.


PORTFOLIO ALLOCATION As of 4/30/05
*Sector*	% of Net Assets
Consumer Non-Cyclical	27.38	%
Technology	18.98
Consumer Cyclical	15.63
Communications	13.98
Industrial	11.15
Energy	8.28
Financial	3.91
Basic Materials	1.09
Short-Term and Other Net Assets	(0.40	)

TOTAL	100.00	%


TOP TEN FUND HOLDINGS As of 4/30/05
*Security*	% of Net Assets
LifePoint Hospitals Inc.	0.88	%
Southwestern Energy Co.	0.84
ResMed Inc.	0.83
Penn National Gaming Inc.	0.78
Sonic Corp.	0.75
CACI International Inc. Class A	0.72
Helmerich & Payne Inc.	0.71
Trimble Navigation Ltd.	0.70
SCP Pool Corp.	0.68
Waste Connections Inc.	0.67

TOTAL	7.56	%


10		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

The iShares Morningstar Small Value Index Fund (the “Value Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Morningstar Small Value Index (the “Value Index”). The Value Index measures the performance of small-capitalization companies that have exhibited “value” characteristics as determined by Morningstar’s proprietary index methodology. The Value Fund invests in a representative sample of securities in the Value Index, which have a similar investment profile as the Value Index. For the reporting period, the Value Fund returned 5.72%, while the Value Index returned 6.00%.


PORTFOLIO ALLOCATION As of 4/30/05
*Sector*	% of Net Assets
Financial	33.37	%
Consumer Cyclical	15.07
Industrial	12.25
Utilities	11.87
Basic Materials	9.22
Consumer Non-Cyclical	7.79
Communications	4.13
Energy	3.37
Technology	2.39
Diversified	0.43
Short-Term and Other Net Assets	0.11

TOTAL	100.00	%


TOP TEN FUND HOLDINGS As of 4/30/05
*Security*	% of Net Assets
CMS Energy Corp.	0.94	%
Southern Union Co.	0.82
Goodyear Tire & Rubber Co. (The)	0.72
Atmos Energy Corp.	0.70
Loews Corp. - Carolina Group	0.68
AmerUs Group Co.	0.64
Healthcare Realty Trust Inc.	0.63
Sybase Inc.	0.63
CarrAmerica Realty Corp.	0.62
Allmerica Financial Corp.	0.62

TOTAL	7.00	%

Every one of the Core Fund’s ten largest holdings as of April 30, 2005, posted positive results for the reporting period. The best performer was also the Core Fund’s largest holding – mining equipment manufacturer Joy Global Inc., which benefited from increased coal mining activity. Soaring oil prices boosted two other top performers: oil exploration companies Range Resources Corp. and Denbury Resources Inc. Weaker performers included electrical component maker Thomas & Betts Corp. and lawn mower manufacturer Toro Co., though these stocks posted gains of more than 10% for the reporting period.


MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE		11

Nine of the Value Fund’s top ten holdings as of April 30, 2005 gained ground for the reporting period. The best performer was electric & gas utility CMS Energy Corp., which benefited from higher natural gas prices. Other top performers included tire manufacturer The Goodyear Tire & Rubber Co. and tobacco company Loews Corp. - Carolina Group. The only decliner among the Value Fund’s ten largest holdings was insurer Allmerica Financial Corp., which struggled amid a difficult hurricane season.

Despite an overall decline, the Growth Fund saw each of its ten largest holdings as of April 30, 2005 produce gains for the reporting period. The top performers for the reporting period were oil and gas exploration company Southwestern Energy Co. and gaming operator Penn National Gaming Inc. Technology outsourcing company CACI International Inc.’s Class A shares and oil driller Helmerich & Payne Inc. also posted strong returns for the reporting period. The weakest performer in the top ten holdings was swimming pool equipment maker SCP Pool Corp, which still returned a double-digit gain for the reporting period.


12		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Shareholder Expenses

iSHARES^® TRUST

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from November 1, 2004 to April 30, 2005.

Actual Expenses

Hypothetical Example for Comparison Purposes


iShares Index Fund	Beginning Account Value (November 1, 2004)		Ending Account Value (April 30, 2005)		Annualized Expense Ratio		Expenses Paid During Period* (November 1, 2004 to April 30, 2005)
Morningstar Large Core
Actual	$	1,000.00	$	1,047.60	0.20	%	$	1.02
Hypothetical (5% return before expenses)		1,000.00		1,023.80	0.20			1.00
Morningstar Large Growth
Actual		1,000.00		979.40	0.25			1.23
Hypothetical (5% return before expenses)		1,000.00		1,023.55	0.25			1.25
Morningstar Large Value
Actual		1,000.00		1,065.90	0.25			1.28
Hypothetical (5% return before expenses)		1,000.00		1,023.55	0.25			1.25
Morningstar Mid Core
Actual		1,000.00		1,051.60	0.25			1.27
Hypothetical (5% return before expenses)		1,000.00		1,023.55	0.25			1.25


SHAREHOLDER EXPENSES		13

Shareholder Expenses (Continued)

iSHARES^® TRUST


iShares Index Fund	Beginning Account Value (November 1, 2004)		Ending Account Value (April 30, 2005)		Annualized Expense Ratio		Expenses Paid During Period* (November 1, 2004 to April 30, 2005)
Morningstar Mid Growth
Actual	$	1,000.00	$	1,038.40	0.30	%	$	1.52
Hypothetical (5% return before expenses)		1,000.00		1,023.31	0.30			1.51
Morningstar Mid Value
Actual		1,000.00		1,084.30	0.30			1.55
Hypothetical (5% return before expenses)		1,000.00		1,023.31	0.30			1.51
Morningstar Small Core
Actual		1,000.00		1,011.00	0.25			1.25
Hypothetical (5% return before expenses)		1,000.00		1,023.55	0.25			1.25
Morningstar Small Growth
Actual		1,000.00		986.20	0.30			1.48
Hypothetical (5% return before expenses)		1,000.00		1023.31	0.30			1.51
Morningstar Small Value
Actual		1,000.00		1,016.20	0.30			1.50
Hypothetical (5% return before expenses)		1,000.00		1,023.31	0.30			1.51

*	Expenses are calculated using each Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days), and divided by the number of days in the year (365 days).


14		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MORNINGSTAR LARGE CORE INDEX FUND

April 30, 2005


*Security*	*Shares*	*Value*
COMMON STOCKS – 99.92%

ADVERTISING – 0.46%
Omnicom Group Inc.	2,964	$	245,716

			245,716

AEROSPACE & DEFENSE – 4.42%
Boeing Co. (The)¹	11,816		703,288
General Dynamics Corp.	2,647		278,067
Lockheed Martin Corp.¹	5,608		341,808
Raytheon Co.	7,143		268,648
United Technologies Corp.	7,503		763,205

			2,355,016

AGRICULTURE – 0.47%
Monsanto Co.	4,229		247,904

			247,904

APPAREL – 0.40%
Nike Inc. Class B	2,739		210,383

			210,383

AUTO MANUFACTURERS – 0.35%
PACCAR Inc.	2,749		186,657

			186,657

BANKS – 5.46%
Fifth Third Bancorp	7,963		346,391
M&T Bank Corp.	1,325		137,071
Mellon Financial Corp.	6,714		185,911
Northern Trust Corp.	3,080		138,692
Regions Financial Corp.¹	7,316		245,013
State Street Corp.	5,324		246,129
Wells Fargo & Co.	26,838		1,608,670

			2,907,877

BEVERAGES – 6.94%
Anheuser-Busch Companies Inc.¹	12,736		596,936
Coca-Cola Co. (The)	35,292		1,533,084
Coca-Cola Enterprises Inc.	3,917		79,515
PepsiCo Inc.	26,724		1,486,923

			3,696,458

BUILDING MATERIALS – 0.42%
Masco Corp.	7,033		221,469

			221,469

CHEMICALS – 1.85%
Du Pont (E.I.) de Nemours and Co.¹	15,784		743,584
Praxair Inc.	5,149		241,128

			984,712

COMMERCIAL SERVICES – 0.91%
Accenture Ltd.²	7,107		154,222
Cendant Corp.	16,672		331,940

			486,162

COMPUTERS – 4.15%
International Business Machines Corp.	26,430		2,018,723
Sun Microsystems Inc.²	52,667		191,181

			2,209,904

COSMETICS & PERSONAL CARE – 4.86%
Colgate-Palmolive Co.	8,450		420,726
Procter & Gamble Co.¹	40,049		2,168,653

			2,589,379

DIVERSIFIED FINANCIAL SERVICES – 3.82%
American Express Co.	17,659		930,629
Capital One Financial Corp.	3,864		273,919
Countrywide Financial Corp.¹	8,918		322,742
Franklin Resources Inc.	2,222		152,607
MBNA Corp.	17,976		355,026

			2,034,923

ELECTRIC – 0.75%
TXU Corp.	4,623		396,607

			396,607

ELECTRONICS – 0.27%
Agilent Technologies Inc.²	7,035		145,976

			145,976

ENVIRONMENTAL CONTROL – 0.49%
Waste Management Inc.	9,182		261,595

			261,595

FOOD – 1.30%
Hershey Co. (The)	2,723		174,000
Kellogg Co.	3,743		168,248
Sysco Corp.¹	10,126		350,360

			692,608

HEALTH CARE - PRODUCTS – 7.16%
Baxter International Inc.	9,736		361,206


SCHEDULES OF INVESTMENTS		15

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR LARGE CORE INDEX FUND

April 30, 2005


*Security*	*Shares*	*Value*
Becton, Dickinson & Co.	3,764	$	220,269
Johnson & Johnson	47,107		3,232,953

			3,814,428

HEALTH CARE - SERVICES – 2.46%
Aetna Inc.	4,863		356,798
HCA Inc.¹	6,328		353,356
WellPoint Inc.^1,2	4,717		602,597

			1,312,751

HOUSEHOLD PRODUCTS & WARES – 0.76%
Clorox Co.	3,379		213,891
Fortune Brands Inc.	2,280		192,842

			406,733

INSURANCE – 4.56%
AFLAC Inc.	8,030		326,420
American International Group Inc.	36,337		1,847,736
Progressive Corp. (The)	2,781		253,822

			2,427,978

LODGING – 0.34%
Marriott International Inc. Class A	2,907		182,414

			182,414

MACHINERY – 0.90%
Caterpillar Inc.	5,429		478,023

			478,023

MANUFACTURING – 14.32%
General Electric Co.	167,785		6,073,817
Illinois Tool Works Inc.	4,112		344,668
Ingersoll-Rand Co. Class A	2,776		213,391
Tyco International Ltd.	31,923		999,509

			7,631,385

MEDIA – 3.38%
Clear Channel Communications Inc.	8,516		272,001
Gannett Co. Inc.	4,042		311,234
McGraw-Hill Companies Inc. (The)	3,030		263,852
Tribune Co.	3,335		128,731
Viacom Inc. Class A	601		20,903
Viacom Inc. Class B	23,287		806,196

			1,802,917

MINING – 1.21%
Alcoa Inc.	13,866		402,391
Newmont Mining Corp.	6,429		244,109

			646,500

OFFICE & BUSINESS EQUIPMENT – 0.38%
Xerox Corp.²	15,099		200,062

			200,062

OIL & GAS – 1.16%
Apache Corp.	5,163		290,625
Devon Energy Corp.	7,261		327,979

			618,604

OIL & GAS SERVICES – 0.62%
Halliburton Co.	7,973		331,597

			331,597

PHARMACEUTICALS – 11.28%
Abbott Laboratories	24,714		1,214,940
Cardinal Health Inc.	6,815		378,710
Medco Health Solutions Inc.²	4,281		218,203
Pfizer Inc.	119,541		3,247,929
Wyeth	21,179		951,784

			6,011,566

REAL ESTATE INVESTMENT TRUSTS – 0.43%
Simon Property Group Inc.	3,500		231,245

			231,245

RETAIL – 5.75%
CVS Corp.	6,291		324,490
Gap Inc. (The)	10,120		216,062
Home Depot Inc.	34,839		1,232,255
Limited Brands Inc.	5,411		117,365
McDonald’s Corp.	19,989		585,878
Penney (J.C.) Co. Inc. (Holding Co.)	4,013		190,256
TJX Companies Inc.	7,970		180,521
Yum! Brands Inc.	4,639		217,847

			3,064,674

SAVINGS & LOANS – 0.57%
Golden West Financial Corp.¹	4,848		302,176

			302,176

SOFTWARE – 2.14%
Automatic Data Processing Inc.	9,397		408,206
Oracle Corp.²	63,383		732,707

			1,140,913


16		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR LARGE CORE INDEX FUND

April 30, 2005


*Security*	Shares or Principal		*Value*
TELECOMMUNICATIONS – 2.87%
Corning Inc.²		22,068	$	303,435
Lucent Technologies Inc.^1,2		68,239		165,821
Motorola Inc.		37,610		576,937
Nextel Communications Inc. Class A²		17,146		479,917

				1,526,110

TRANSPORTATION – 2.31%
FedEx Corp.		4,470		379,727
Norfolk Southern Corp.		6,339		199,045
United Parcel Service Inc. Class B		9,158		653,057

				1,231,829

TOTAL COMMON STOCKS (Cost: $53,398,514)				53,235,251

SHORT-TERM INVESTMENTS – 6.90%

COMMERCIAL PAPER³ – 1.84%
Alpine Securitization Corp.
2.80%, 05/04/05	$	47,199		47,188
Amstel Funding Corp.
2.95%, 08/19/05		6,860		6,798
Amsterdam Funding Corp.
2.80% - 3.02%, 05/04/05 - 05/27/05		18,649		18,629
ANZ National Bank Ltd.
2.94%, 08/15/05		8,252		8,181
Blue Ridge Asset Funding Corp.
3.02%, 06/02/05		24,755		24,690
Bryant Park Funding LLC
2.75%, 05/03/05		3,301		3,300
Cancara Asset Securitisation LLC
2.80% - 2.97%, 05/03/05 - 05/23/05		54,733		54,719
Cantabric Finance LLC
3.04% - 3.12%, 06/28/05 - 07/25/05		20,629		20,494
Chariot Funding LLC
2.99%, 05/20/05		3,924		3,918
Charta LLC
2.99%, 06/16/05 - 06/21/05		34,657		34,521
Chesham Finance LLC
2.89% - 3.01%, 05/10/05 - 06/21/05		58,586		58,515

*Security*	*Principal*		*Value*
Corporate Asset Funding
2.75% - 2.99%, 05/05/05 - 06/16/05	$	30,531	$	30,458
CRC Funding LLC
2.95% - 3.00%, 05/02/05 - 06/29/05		28,881		28,834
DEPFA Bank PLC
2.28%, 05/03/05		8,252		8,251
Deutsche Bank Financial LLC
2.80%, 05/03/05		49,510		49,506
Edison Asset Securitization
2.26% - 3.12%, 05/03/05 - 09/06/05		56,111		55,970
Fairway Finance LLC
3.15%, 09/15/05		14,680		14,506
Falcon Asset Securitization Corp.
2.79% - 3.02%, 05/03/05 - 06/01/05		33,064		33,024
Ford Credit Auto Receivables
2.74%, 05/04/05		8,087		8,085
Fortis Funding LLC
2.35%, 05/09/05		23,104		23,094
Gemini Securitization Corp.
3.02%, 06/27/05		1,650		1,643
General Electric Capital Corp.
2.74%, 07/07/05		8,252		8,210
Georgetown Funding Co. LLC
2.81% - 3.05%, 05/03/05 - 06/16/05		36,307		36,258
Grampian Funding LLC
3.00% - 3.13%, 08/22/05 - 09/09/05		49,510		49,029
Jupiter Securization Corp.
2.99% - 3.02%, 05/19/05 - 06/03/05		66,620		66,488
Kitty Hawk Funding Corp.
2.88%, 05/04/05		12,462		12,460
Moat Funding LLC
2.74%, 05/02/05		11,552		11,552
Mortgage Interest Networking Trust
2.82% - 3.05%, 05/02/05 - 05/24/05		21,454		21,451


SCHEDULES OF INVESTMENTS		17

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR LARGE CORE INDEX FUND

April 30, 2005


*Security*	*Principal*		*Value*
Nordea North America Inc.
2.74%, 07/11/05	$	8,252	$	8,208
Park Granada LLC
3.04%, 05/25/05 - 05/31/05		10,727		10,705
Ranger Funding Co. LLC
2.89% - 3.02%, 05/04/05 - 05/27/05		26,678		26,650
Santander Central Hispano
2.75%, 07/08/05		20,629		20,524
Scaldis Capital LLC
2.75% - 2.99%, 05/16/05 - 07/08/05		48,689		48,609
Societe Generale
2.75% - 2.79%, 05/02/05 - 05/03/05		56,936		56,933
Sydney Capital Corp.
2.81%, 05/04/05		5,446		5,445
Tulip Funding Corp.
2.80% - 3.02%, 05/03/05 - 07/01/05		45,384		45,364
UBS Finance (Delaware)
2.79%, 05/04/05		13,203		13,200
Windmill Funding Corp.
2.80%, 05/04/05		5,099		5,099

				980,509

FLOATING RATE NOTES³ – 2.49%
Allstate Life Global Funding II
2.91%, 03/08/06⁴		7,591		7,592
American Express Centurion Bank
2.98% - 3.04%, 10/26/05 - 01/24/06		57,761		57,769
Bank of Nova Scotia
2.80% - 2.94%, 09/26/05 - 01/03/06		10,727		10,725
Beta Finance Inc.
2.81% - 3.16%, 05/04/05 - 04/25/06⁴		63,372		63,375
BMW US Capital LLC
2.92%, 04/18/06⁴		16,503		16,503
Canadian Imperial Bank of Commerce
2.86% - 3.00%, 09/13/05 - 12/14/05		56,111		56,103
CC USA Inc.
2.81% - 3.12%, 05/04/05 - 03/23/06⁴		42,908		42,907
Commodore CDO Ltd.
3.08%, 12/12/05		4,126		4,126
Den Danske Bank NY
2.85% - 2.96%, 08/12/05 - 10/17/05		49,510		49,505
DEPFA Bank PLC
2.99%, 03/15/06		16,503		16,503
Dorada Finance Inc.
3.00% - 3.12%, 07/29/05 - 03/27/06⁴		35,812		35,814
Fairway Finance LLC
2.94%, 06/20/05		8,252		8,251
Fifth Third Bancorp
2.98%, 02/23/06⁴		33,006		33,006
Five Finance Inc.
3.01%, 02/27/06⁴		8,252		8,252
General Electric Capital Corp.
3.01%, 05/09/06		7,426		7,435
General Electric Commercial Equipment Financing LLC
2.95%, 11/20/05		4,748		4,748
Greenwich Capital Holdings Inc.
2.83%, 09/02/05		10,727		10,727
Hartford Life Global Funding Trust
2.94%, 04/15/06		16,503		16,503
HBOS Treasury Services PLC
2.87% - 3.08%, 01/10/06 - 04/24/06		49,510		49,509
K2 USA LLC
2.87% - 3.11%, 06/10/05 - 02/15/06⁴		74,264		74,266
Leafs LLC
2.99%, 01/20/06 - 02/21/06⁴		17,328		17,328
Links Finance LLC
2.92% - 3.15%, 11/16/05 - 02/06/06⁴		34,657		34,670
Lothian Mortgages PLC
3.01%, 01/24/06⁴		24,755		24,755


18		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR LARGE CORE INDEX FUND

April 30, 2005


*Security*	*Principal*		*Value*
Marshall & Ilsley Corp.
3.09%, 02/20/06	$	16,503	$	16,519
MetLife Global Funding I
2.86%, 05/05/06⁴		24,755		24,755
National City Bank (Ohio)
2.84% - 2.95%, 06/10/05 - 08/09/05		41,258		41,256
Nationwide Building Society
2.89% - 3.12%, 01/13/06 - 04/28/06⁴		61,062		61,072
Norddeutsche Landesbank
3.11%, 07/27/05		16,503		16,502
Northern Rock PLC
2.88% - 2.99%, 10/25/05 - 02/03/06⁴		49,510		49,509
Permanent Financing PLC
2.87% - 2.89%, 06/10/05 - 03/10/06		58,586		58,586
Royal Bank of Scotland
2.79% - 2.91%, 06/20/05 - 04/05/06		22,403		22,396
Sedna Finance Inc.
2.92%, 01/10/06 - 01/17/06⁴		9,077		9,075
Sigma Finance Inc.
2.82% - 3.16%, 08/17/05 - 01/09/06⁴		84,166		84,170
Societe Generale
2.99%, 03/30/06		14,028		14,024
SunTrust Bank
3.17%, 04/28/06		24,755		24,755
Tango Finance Corp.
2.74% - 2.99%, 05/17/05 - 09/15/05⁴		44,724		44,723
Wachovia Asset Securitization Inc.
3.00% - 3.01%, 05/25/05		44,954		44,955
Wells Fargo & Co.
2.92%, 05/15/06⁴		8,252		8,253
WhistleJacket Capital LLC
2.86% - 2.97%, 06/15/05 - 01/17/06⁴		57,761		57,756

*Security*	Shares or Principal		*Value*
White Pine Finance LLC
2.80% - 3.09%, 05/20/05 - 01/13/06⁴	$	70,799	$	70,794
Windmill Funding Corp.
2.78%, 05/03/05		11,552		11,551
Winston Funding Ltd.
3.22%, 07/23/05⁴		11,783		11,783
World Savings Bank
2.86%, 09/09/05		5,776		5,776

				1,328,582

MONEY MARKET FUNDS – 0.17%
Barclays Global Investors Funds Government Money Market Fund, Institutional Shares^3,5		66,013		66,013
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares⁵		14,069		14,069
BlackRock Temp Cash Money Market Fund³		2,391		2,391
Short-Term Investment Co. - Prime Money Market Portfolio, Institutional Shares³		6,686		6,686

				89,159

REPURCHASE AGREEMENTS³ – 1.41%
Bank of America N.A. Repurchase Agreement, dated 4/29/05, due 5/2/05, with a maturity value of $412,682 and an effective yield of 2.97%.⁶	$	412,580		412,580
Goldman Sachs & Co.Repurchase Agreements, dated 4/29/05, due 5/2/05, with a total maturity value of $200,675 and effective yields of 2.96% - 3.00%.⁶		200,625		200,625
Merrill Lynch Government Securities Inc. Repurchase Agreements, dated 4/29/05, due 5/2/05, with a total maturity value of $140,121 and effective yields of 2.96% - 3.00%.⁶		140,086		140,086

				753,291


SCHEDULES OF INVESTMENTS		19

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR LARGE CORE INDEX FUND

April 30, 2005


*Security*	*Principal*		*Value*
TIME DEPOSITS³ – 0.93%
American Express Centurion Bank
3.00%, 05/25/05	$	41,258	$	41,258
Banco Bilbao Vizcaya Argentaria SA
3.03% - 3.18%, 06/27/05 - 09/14/05		23,930		23,929
BNP Paribas (New York)
2.78% - 3.03%, 07/11/05 - 08/23/05		23,104		23,104
Credit Suisse First Boston
2.75% - 2.81%, 05/03/05		21,454		21,454
Dexia Credit Local SA
2.81% - 3.01%, 05/04/05 - 06/21/05		32,181		32,181
First Tennessee Bank
3.00% - 3.04%, 06/14/05 - 06/27/05		28,881		28,880
HBOS Treasury Services PLC
3.39%, 12/14/05		9,902		9,902
Natexis Banques
2.98%, 08/18/05		16,503		16,503
Norddeutsche Landesbank
2.11%, 06/07/05		16,503		16,503
Societe Generale
2.81%, 05/03/05		11,552		11,552
SunTrust Bank
2.68%, 05/03/05		16,503		16,503
Svenska Handelsbanken AB
3.00%, 06/20/05		8,252		8,252
Toronto-Dominion Bank
1.77% - 3.18%, 05/10/05 - 11/09/05		50,335		50,335
UBS AG
2.67% - 3.40%, 11/09/05 - 12/15/05		13,203		13,202
Washington Mutual Bank
2.81% - 3.15%, 05/02/05 - 07/28/05		106,445		106,446
Wells Fargo Bank N.A.
3.04%, 06/29/05		49,510		49,510
World Savings Bank
2.75%, 05/03/05		23,104		23,104

				492,618

U.S. GOVERNMENT AGENCY NOTES³ – 0.06%
Federal Home Loan Mortgage Corp.
2.06%, 05/31/05		8,227		8,214
Federal National Mortgage Association
2.33%, 07/22/05		24,755		24,625

				32,839

TOTAL SHORT-TERM INVESTMENTS (Cost: $3,676,998)				3,676,998

TOTAL INVESTMENTS IN SECURITIES – 106.82% (Cost: $57,075,512)				56,912,249
Other Assets, Less Liabilities – (6.82%)				(3,632,397	)

NET ASSETS – 100.00%			$	53,279,852

¹	All or a portion of this security represents a security on loan. See Note 5.

²	Non-income earning security.

³	All or a portion of this security (these securities) represent(s) an investment of securities lending collateral. See Note 5.

⁴	All or a portion of this security is 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	The Fund’s investment adviser is an affiliate of the issuer. See Note 2.

⁶	Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 3.12% to 7.13% and maturity dates ranging from 5/25/05 to 8/1/42.

See notes to financial statements.


20		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MORNINGSTAR LARGE GROWTH INDEX FUND

April 30, 2005


*Security*	*Shares*	*Value*
COMMON STOCKS – 99.98%

AIRLINES – 0.43%
Southwest Airlines Co.	14,165	$	210,775

			210,775

BIOTECHNOLOGY – 5.38%
Amgen Inc.^1,2	25,489		1,483,715
Biogen Idec Inc.¹	6,768		245,272
Genentech Inc.¹	9,353		663,502
Genzyme Corp.¹	4,591		269,079

			2,661,568

COMMERCIAL SERVICES – 1.28%
Apollo Group Inc. Class A^1,2	3,044		219,533
Moody’s Corp.	2,535		208,225
Paychex Inc.	6,787		207,682

			635,440

COMPUTERS – 5.94%
Apple Computer Inc.¹	16,366		590,158
Dell Inc.¹	43,933		1,530,186
EMC Corp.¹	48,667		638,511
Lexmark International Inc.¹	2,609		181,195

			2,940,050

COSMETICS & PERSONAL CARE – 2.89%
Avon Products Inc.²	9,507		381,041
Estee Lauder Companies Inc. Class A	2,683		103,054
Gillette Co. (The)	18,288		944,392

			1,428,487

DIVERSIFIED FINANCIAL SERVICES – 1.30%
Schwab (Charles) Corp. (The)	22,411		231,954
SLM Corp.	8,603		409,847

			641,801

ENTERTAINMENT – 0.38%
International Game Technology Inc.	7,024		188,875

			188,875

FOOD – 0.39%
Wrigley (William Jr.) Co.	2,774		191,767

			191,767

HEALTH CARE - PRODUCTS – 6.85%
Alcon Inc.¹	1,570		152,290
Biomet Inc.	4,754		183,932
Boston Scientific Corp.¹	12,060		356,735
Guidant Corp.	6,325		468,556
Medtronic Inc.	24,268		1,278,924
St. Jude Medical Inc.¹	7,201		281,055
Stryker Corp.	5,583		271,055
Zimmer Holdings Inc.¹	4,907		399,528

			3,392,075

HEALTH CARE - SERVICES – 2.50%
UnitedHealth Group Inc.	13,115		1,239,499

			1,239,499

INTERNET – 5.29%
Amazon.com Inc.¹	5,938		192,154
eBay Inc.¹	19,961		633,363
Google Inc. Class A^1,2	2,304		506,880
IAC/InterActiveCorp^1,2	10,154		220,748
Symantec Corp.¹	14,178		266,263
Yahoo! Inc.¹	23,143		798,665

			2,618,073

LEISURE TIME – 1.41%
Carnival Corp.	8,571		418,950
Harley-Davidson Inc.	5,900		277,418

			696,368

LODGING – 0.46%
Starwood Hotels & Resorts Worldwide Inc.	4,194		227,902

			227,902

MANUFACTURING – 2.74%
Danaher Corp.	5,152		260,846
3M Co.	14,325		1,095,433

			1,356,279

MEDIA – 10.02%
Comcast Corp. Class A¹	25,251		810,810
Comcast Corp. Class A Special¹	16,902		536,300
DIRECTV Group Inc. (The)¹	18,412		259,977
EchoStar Communications Corp.	4,352		125,990
Liberty Media Corp. Class A	51,798		520,052
Time Warner Inc.¹	88,483		1,487,399
Univision Communications Inc. Class A^1,2	5,133		134,947
Walt Disney Co. (The)²	41,079		1,084,486

			4,959,961


SCHEDULES OF INVESTMENTS		21

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR LARGE GROWTH INDEX FUND

April 30, 2005


*Security*	*Shares*		*Value*
OIL & GAS – 0.60%
Transocean Inc.¹		6,410	$	297,232

				297,232

OIL & GAS SERVICES – 2.24%
Baker Hughes Inc.		6,718		296,398
Schlumberger Ltd.		11,845		810,316

				1,106,714

PHARMACEUTICALS – 4.59%
Allergan Inc.		2,650		186,533
Caremark Rx Inc.¹		9,087		363,934
Forest Laboratories Inc.¹		7,455		265,994
Gilead Sciences Inc.¹		8,602		319,134
Lilly (Eli) & Co.²		19,401		1,134,376

				2,269,971

RETAIL – 13.57%
Bed Bath & Beyond Inc.¹		6,011		223,669
Best Buy Co. Inc.		5,330		268,312
Costco Wholesale Corp.		9,272		376,258
Kohl’s Corp.¹		6,106		290,646
Lowe’s Companies Inc.		14,287		744,496
Staples Inc.		14,908		284,296
Starbucks Corp.¹		7,992		395,764
Target Corp.		16,601		770,452
Walgreen Co.²		20,554		885,055
Wal-Mart Stores Inc.		52,496		2,474,661

				6,713,609

SEMICONDUCTORS – 10.97%
Analog Devices Inc.		7,527		256,746
Applied Materials Inc.¹		34,074		506,680
Broadcom Corp. Class A¹		5,275		157,775
Intel Corp.		126,916		2,985,064
Linear Technology Corp.		6,230		222,660
Maxim Integrated Products Inc.		6,569		245,681
Texas Instruments Inc.²		34,725		866,736
Xilinx Inc.		6,988		188,257

				5,429,599

SOFTWARE – 13.35%
Adobe Systems Inc.²		4,806		285,813
Computer Associates International Inc.		9,415		253,264
Electronic Arts Inc.¹		5,976		319,059

*Security*	Shares or Principal		*Value*
First Data Corp.²		17,243	$	655,751
Microsoft Corp.		194,254		4,914,626
Veritas Software Corp.¹		8,715		179,442

				6,607,955

TELECOMMUNICATIONS – 7.40%
Cisco Systems Inc.¹		132,162		2,283,759
Juniper Networks Inc.¹		9,950		224,771
QUALCOMM Inc.		33,079		1,154,126

				3,662,656

TOTAL COMMON STOCKS (Cost: $51,943,783)				49,476,656

SHORT-TERM INVESTMENTS – 6.25%

COMMERCIAL PAPER³ – 1.66%
Alpine Securitization Corp.
2.80%, 05/04/05	$	39,660		39,653
Amstel Funding Corp.
2.95%, 08/19/05		5,764		5,713
Amsterdam Funding Corp.
2.80% - 3.02%, 05/04/05 - 05/27/05		15,670		15,655
ANZ National Bank Ltd.
2.94%, 08/15/05		6,934		6,874
Blue Ridge Asset Funding Corp.
3.02%, 06/02/05		20,801		20,747
Bryant Park Funding LLC
2.75%, 05/03/05		2,773		2,773
Cancara Asset Securitisation LLC
2.80% - 2.97%, 05/03/05 - 05/23/05		45,991		45,979
Cantabric Finance LLC
3.04% - 3.12%, 06/28/05 - 07/25/05		17,334		17,221
Chariot Funding LLC
2.99%, 05/20/05		3,297		3,292
Charta LLC
2.99%, 06/16/05 - 06/21/05		29,121		29,006
Chesham Finance LLC
2.89% - 3.01%, 05/10/05 - 06/21/05		49,229		49,168


22		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR LARGE GROWTH INDEX FUND

April 30, 2005


*Security*	*Principal*		*Value*
Corporate Asset Funding
2.75% - 2.99%, 05/05/05 - 06/16/05	$	25,654	$	25,592
CRC Funding LLC
2.95% - 3.00%, 05/02/05 - 06/29/05		24,268		24,228
DEPFA Bank PLC
2.28%, 05/03/05		6,934		6,933
Deutsche Bank Financial LLC
2.80%, 05/03/05		41,602		41,598
Edison Asset Securitization
2.26% - 3.12%, 05/03/05 - 09/06/05		47,149		47,031
Fairway Finance LLC
3.15%, 09/15/05		12,336		12,189
Falcon Asset Securitization Corp.
2.79% - 3.02%, 05/03/05 - 06/01/05		27,783		27,749
Ford Credit Auto Receivables
2.74%, 05/04/05		6,795		6,794
Fortis Funding LLC
2.35%, 05/09/05		19,414		19,405
Gemini Securitization Corp.
3.02%, 06/27/05		1,387		1,380
General Electric Capital Corp.
2.74%, 07/07/05		6,934		6,899
Georgetown Funding Co. LLC
2.81% - 3.05%, 05/03/05 - 06/16/05		30,508		30,467
Grampian Funding LLC
3.00% - 3.13%, 08/22/05 - 09/09/05		41,602		41,199
Jupiter Securization Corp.
2.99% - 3.02%, 05/19/05 - 06/03/05		55,979		55,870
Kitty Hawk Funding Corp.
2.88%, 05/04/05		10,472		10,470
Moat Funding LLC
2.74%, 05/02/05		9,707		9,707
Mortgage Interest Networking Trust
2.82% - 3.05%, 05/02/05 - 05/24/05		18,027		18,025
Nordea North America Inc.
2.74%, 07/11/05		6,934		6,897
Park Granada LLC
3.04%, 05/25/05 - 05/31/05		9,014		8,995
Ranger Funding Co. LLC
2.89% - 3.02%, 05/04/05 - 05/27/05		22,417		22,394
Santander Central Hispano
2.75%, 07/08/05		17,334		17,245
Scaldis Capital LLC
2.75% - 2.99%, 05/16/05 - 07/08/05		40,912		40,845
Societe Generale
2.75% - 2.79%, 05/02/05 - 05/03/05		47,842		47,840
Sydney Capital Corp.
2.81%, 05/04/05		4,576		4,575
Tulip Funding Corp.
2.80% - 3.02%, 05/03/05 - 07/01/05		38,135		38,118
UBS Finance (Delaware)
2.79%, 05/04/05		11,094		11,092
Windmill Funding Corp.
2.80%, 05/04/05		4,285		4,284

				823,902

FLOATING RATE NOTES³ – 2.26%
Allstate Life Global Funding II
2.91%, 03/08/06⁴		6,379		6,379
American Express Centurion Bank
2.98% - 3.04%, 10/26/05 - 01/24/06		48,535		48,543
Bank of Nova Scotia
2.80% - 2.94%, 09/26/05 - 01/03/06		9,014		9,012
Beta Finance Inc.
2.81% - 3.16%, 05/04/05 - 04/25/06⁴		53,250		53,253
BMW US Capital LLC
2.92%, 04/18/06⁴		13,867		13,867


SCHEDULES OF INVESTMENTS		23

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR LARGE GROWTH INDEX FUND

April 30, 2005


*Security*	*Principal*		*Value*
Canadian Imperial Bank of Commerce
2.86% - 3.00%, 09/13/05 - 12/14/05	$	47,149	$	47,142
CC USA Inc.
2.81% - 3.12%, 05/04/05 - 03/23/06⁴		36,055		36,053
Commodore CDO Ltd.
3.08%, 12/12/05		3,467		3,467
Den Danske Bank NY
2.85% - 2.96%, 08/12/05 - 10/17/05		41,602		41,597
DEPFA Bank PLC
2.99%, 03/15/06		13,867		13,867
Dorada Finance Inc.
3.00% - 3.12%, 07/29/05 - 03/27/06⁴		30,092		30,093
Fairway Finance LLC
2.94%, 06/20/05		6,934		6,934
Fifth Third Bancorp
2.98%, 02/23/06⁴		27,734		27,734
Five Finance Inc.
3.01%, 02/27/06⁴		6,934		6,934
General Electric Capital Corp.
3.01%, 05/09/06		6,240		6,248
General Electric Commercial Equipment Financing LLC
2.95%, 11/20/05		3,990		3,990
Greenwich Capital Holdings Inc.
2.83%, 09/02/05		9,014		9,014
Hartford Life Global Funding Trust
2.94%, 04/15/06		13,867		13,867
HBOS Treasury Services PLC
2.87% - 3.08%, 01/10/06 - 04/24/06		41,602		41,601
K2 USA LLC
2.87% - 3.11%, 06/10/05 - 02/15/06⁴		62,403		62,403
Leafs LLC
2.99%, 01/20/06 - 02/21/06⁴		14,561		14,560
Links Finance LLC
2.92% - 3.15%, 11/16/05 - 02/06/06⁴		29,121		29,132
Lothian Mortgages PLC
3.01%, 01/24/06⁴		20,801		20,801
Marshall & Ilsley Corp.
3.09%, 02/20/06		13,867		13,881
MetLife Global Funding I
2.86%, 05/05/06⁴		20,801		20,801
National City Bank (Ohio)
2.84% - 2.95%, 06/10/05 - 08/09/05		34,668		34,667
Nationwide Building Society
2.89% - 3.12%, 01/13/06 - 04/28/06⁴		51,309		51,318
Norddeutsche Landesbank
3.11%, 07/27/05		13,867		13,866
Northern Rock PLC
2.88% - 2.99%, 10/25/05 - 02/03/06⁴		41,602		41,601
Permanent Financing PLC
2.87% - 2.89%, 06/10/05 - 03/10/06		49,229		49,228
Royal Bank of Scotland
2.79% - 2.91%, 06/20/05 - 04/05/06		18,825		18,819
Sedna Finance Inc.
2.92%, 01/10/06 - 01/17/06⁴		7,627		7,626
Sigma Finance Inc.
2.82% - 3.16%, 08/17/05 - 01/09/06⁴		70,723		70,726
Societe Generale
2.99%, 03/30/06		11,787		11,784
SunTrust Bank
3.17%, 04/28/06		20,801		20,801
Tango Finance Corp.
2.74% - 2.99%, 05/17/05 - 09/15/05⁴		37,580		37,579
Wachovia Asset Securitization Inc.
3.00% - 3.01%, 05/25/05		37,773		37,774


24		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR LARGE GROWTH INDEX FUND

April 30, 2005


*Security*	*Shares or* *Principal*		*Value*
Wells Fargo & Co.
2.92%, 05/15/06⁴	$	6,934	$	6,934
WhistleJacket Capital LLC
2.86% - 2.97%, 06/15/05 - 01/17/06⁴		48,535		48,533
White Pine Finance LLC
2.80% - 3.09%, 05/20/05 - 01/13/06⁴		59,490		59,486
Windmill Funding Corp.
2.78%, 05/03/05		9,707		9,706
Winston Funding Ltd.
3.22%, 07/23/05⁴		9,901		9,902
World Savings Bank
2.86%, 09/09/05		4,854		4,853

				1,116,376

MONEY MARKET FUNDS – 0.15%
Barclays Global Investors Funds Government Money Market Fund, Institutional Shares^3,5		55,469		55,469
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares⁵		11,760		11,760
BlackRock Temp Cash Money Market Fund³		2,009		2,009
Short-Term Investment Co. - Prime Money Market Portfolio, Institutional Shares³		5,618		5,618

				74,856

REPURCHASE AGREEMENTS³ – 1.28%
Bank of America N.A. Repurchase Agreement, dated 4/29/05, due 5/2/05, with a maturity value of $346,766 and an effective yield of 2.97%.⁶	$	346,680		346,680
Goldman Sachs & Co. Repurchase Agreements, dated 4/29/05, due 5/2/05, with a total maturity value of $168,621 and effective yields of 2.96% - 3.00%.⁶		168,579		168,579

*Security*	*Principal*		*Value*
Merrill Lynch Government Securities Inc. Repurchase Agreements, dated 4/29/05, due 5/2/05, with a total maturity value of $ 117,741 and effective yields of 2.96% - 3.00%.⁶	$	117,712	$	117,712

				632,971

TIME DEPOSITS³ – 0.84%
American Express Centurion Bank
3.00%, 05/25/05		34,668		34,668
Banco Bilbao Vizcaya Argentaria SA
3.03% - 3.18%, 06/27/05 - 09/14/05		20,107		20,107
BNP Paribas (New York)
2.78% - 3.03%, 07/11/05 - 08/23/05		19,414		19,414
Credit Suisse First Boston
2.75% - 2.81%, 05/03/05		18,027		18,027
Dexia Credit Local SA
2.81% - 3.01%, 05/04/05 - 06/21/05		27,041		27,041
First Tennessee Bank
3.00% - 3.04%, 06/14/05 - 06/27/05		24,268		24,267
HBOS Treasury Services PLC
3.39%, 12/14/05		8,320		8,320
Natexis Banques
2.98%, 08/18/05		13,867		13,867
Norddeutsche Landesbank
2.11%, 06/07/05		13,867		13,867
Societe Generale
2.81%, 05/03/05		9,707		9,707
SunTrust Bank
2.68%, 05/03/05		13,867		13,868
Svenska Handelsbanken AB
3.00%, 06/20/05		6,934		6,934
Toronto-Dominion Bank
1.77% - 3.18%, 05/10/05 - 11/09/05		42,295		42,295
UBS AG
2.67% - 3.40%,11/09/05 - 12/15/05		11,094		11,094


SCHEDULES OF INVESTMENTS		25

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR LARGE GROWTH INDEX FUND

April 30, 2005


*Security*	*Principal*		*Value*
Washington Mutual Bank
2.81% - 3.15%, 05/02/05 - 07/28/05	$	89,444	$	89,444
Wells Fargo Bank N.A.
3.04%, 06/29/05		41,602		41,602
World Savings Bank
2.75%, 05/03/05		19,414		19,414

				413,936

U.S. GOVERNMENT AGENCY NOTES³ – 0.06%
Federal Home Loan Mortgage Corp.
2.06%, 05/31/05		6,913		6,902
Federal National Mortgage Association
2.33%, 07/22/05		20,801		20,692

				27,594

TOTAL SHORT-TERM INVESTMENTS (Cost: $3,089,635)				3,089,635

TOTAL INVESTMENTS IN SECURITIES – 106.23% (Cost: $55,033,418)				52,566,291
Other Assets, Less Liabilities – (6.23%)				(3,080,899	)

NET ASSETS – 100.00%			$	49,485,392

¹	Non-income earning security.

²	All or a portion of this security represents a security on loan. See Note 5.

³	All or a portion of this security (these securities) represent(s) an investment of securities lending collateral. See Note 5.

⁴	All or a portion of this security is 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	The Fund’s investment adviser is an affiliate of the issuer. See Note 2.

⁶	Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 3.12% to 7.13% and maturity dates ranging from 5/25/05 to 8/1/42.

See notes to financial statements.


26		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MORNINGSTAR LARGE VALUE INDEX FUND

April 30, 2005


*Security*	*Shares*	*Value*
COMMON STOCKS – 99.86%

AEROSPACE & DEFENSE – 0.60%
Northrop Grumman Corp.	6,054	$	332,001

			332,001

AGRICULTURE – 4.06%
Altria Group Inc.	34,595		2,248,329

			2,248,329

AUTO MANUFACTURERS – 0.86%
Ford Motor Co.	29,510		268,836
General Motors Corp.¹	7,758		206,983

			475,819

AUTO PARTS & EQUIPMENT – 0.32%
Johnson Controls Inc.	3,225		176,956

			176,956

BANKS – 13.67%
Bank of America Corp.	68,071		3,065,918
Bank of New York Co. Inc. (The)	13,117		366,489
BB&T Corp.¹	9,361		367,045
Comerica Inc.	2,871		164,393
Genworth Financial Inc. Class A	3,789		105,903
KeyCorp	6,819		226,118
National City Corp.	9,578		325,269
PNC Financial Services Group	4,772		254,014
SunTrust Banks Inc.	6,046		440,330
U.S. Bancorp	31,438		877,120
Wachovia Corp.¹	26,770		1,370,089

			7,562,688

CHEMICALS – 2.07%
Air Products & Chemicals Inc.	3,606		211,780
Dow Chemical Co. (The)	16,060		737,636
PPG Industries Inc.	2,878		194,409

			1,143,825

COMPUTERS – 2.11%
Electronic Data Systems Corp.	8,528		165,017
Hewlett-Packard Co.	48,960		1,002,211

			1,167,228

COSMETICS & PERSONAL CARE – 0.93%
Kimberly-Clark Corp.	8,229		513,901

			513,901

DIVERSIFIED FINANCIAL SERVICES – 19.56%
Bear Stearns Companies Inc. (The)	1,750		165,655
Citigroup Inc.	87,456		4,106,934
Federal Home Loan Mortgage Corp.	11,599		713,570
Federal National Mortgage Association	16,298		879,277
Goldman Sachs Group Inc. (The)	6,950		742,190
JP Morgan Chase & Co.	60,044		2,130,962
Lehman Brothers Holdings Inc.	4,662		427,599
Merrill Lynch & Co. Inc.	14,379		775,459
Morgan Stanley	16,698		878,649

			10,820,295

ELECTRIC – 6.91%
American Electric Power Co. Inc.¹	6,635		233,685
Consolidated Edison Inc.¹	4,117		178,184
Dominion Resources Inc.	5,748		433,399
Duke Energy Corp.¹	14,960		436,682
Edison International^l	5,079		184,368
Entergy Corp.	3,806		278,980
Exelon Corp.	11,168		552,816
FirstEnergy Corp.	5,529		240,622
FPL Group Inc.	5,712		233,164
PG&E Corp.	6,647		230,784
Progress Energy Inc.	4,134		173,587
Public Service Enterprise Group Inc.¹	3,995		232,110
Southern Co. (The)	12,538		413,127

			3,821,508

ELECTRICAL COMPONENTS & EQUIPMENT – 0.81%
Emerson Electric Co.	7,120		446,210

			446,210

FOOD – 3.01%
Archer-Daniels-Midland Co.	9,947		178,947
Campbell Soup Co.	4,337		128,982
ConAgra Foods Inc.	8,860		237,005
General Mills Inc.	6,011		296,943
Heinz (H.J.) Co.	5,902		217,489
Kraft Foods Inc.	4,359		141,275
Kroger Co.²	11,385		179,541
Sara Lee Corp.¹	13,351		285,578

			1,665,760


SCHEDULES OF INVESTMENTS		27

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR LARGE VALUE INDEX FUND

April 30, 2005


*Security*	*Shares*		*Value*
FOREST PRODUCTS & PAPER – 1.01%
International Paper Co.		8,158	$	279,738
Weyerhaeuser Co.		4,057		278,351

				558,089

INSURANCE – 6.15%
ACE Ltd.		4,763		204,618
Allstate Corp. (The)		11,676		655,724
Chubb Corp.		3,202		261,860
Hartford Financial Services Group Inc.		4,920		356,060
Loews Corp.		2,130		150,974
Marsh & McLennan Companies Inc.		8,272		231,864
MetLife Inc.		7,022		273,156
Principal Financial Group Inc.¹		5,253		205,287
Prudential Financial Inc.		8,749		500,005
St. Paul Travelers Companies Inc.		11,289		404,146
XL Capital Ltd. Class A		2,289		160,917

				3,404,611

MACHINERY – 0.47%
Deere & Co.		4,176		261,167

				261,167

MANUFACTURING – 1.12%
Eaton Corp.		2,571		150,789
Honeywell International Inc.		13,131		469,565

				620,354

OFFICE & BUSINESS EQUIPMENT – 0.31%
Pitney Bowes Inc.		3,873		173,201

				173,201

OIL & GAS – 19.83%
Anadarko Petroleum Corp.		4,226		308,667
Burlington Resources Inc.		6,666		324,034
ChevronTexaco Corp.		33,839		1,759,628
ConocoPhillips		10,586		1,109,942
Exxon Mobil Corp.		108,708		6,199,617
Marathon Oil Corp.		5,846		272,248
Occidental Petroleum Corp.		6,610		456,090
Unocal Corp.		4,440		242,202
Valero Energy Corp.		4,318		295,913

				10,968,341

PHARMACEUTICALS – 4.76%
Bristol-Myers Squibb Co.¹		32,761		851,786

*Security*	Shares or Principal		*Value*
Merck & Co. Inc.		37,331	$	1,265,521
Schering-Plough Corp.		24,843		518,473

				2,635,780

REAL ESTATE INVESTMENT TRUSTS – 0.39%
Equity Office Properties Trust		6,829		214,909

				214,909

SAVINGS & LOANS – 1.10%
Washington Mutual Inc.¹		14,704		607,569

				607,569

TELECOMMUNICATIONS – 8.75%
Alltel Corp.		5,207		296,591
AT&T Corp.		13,245		253,377
BellSouth Corp.¹		30,850		817,217
SBC Communications Inc.		55,808		1,328,230
Sprint Corp. (FON Group)		21,269		473,448
Verizon Communications Inc.¹		46,675		1,670,965

				4,839,828

TRANSPORTATION – 1.06%
Burlington Northern Santa Fe Corp.		6,383		307,980
Union Pacific Corp.		4,379		279,949

				587,929

TOTAL COMMON STOCKS (Cost: $54,591,290)				55,246,298

SHORT-TERM INVESTMENTS – 7.13%

COMMERCIAL PAPER³– 1.89%
Alpine Securitization Corp.
2.80%, 05/04/05	$	50,347		50,325
Amstel Funding Corp.
2.95%, 08/19/05		7,317		7,252
Amsterdam Funding Corp.
2.80% - 3.02%, 05/04/05 - 05/27/05		19,892		19,872
ANZ National Bank Ltd.
2.94%, 08/15/05		8,802		8,727
Blue Ridge Asset Funding Corp.
3.02%, 06/02/05		26,406		26,338
Bryant Park Funding LLC
2.75%, 05/03/05		3,521		3,521


28		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR LARGE VALUE INDEX FUND

April 30, 2005


*Security*	*Principal*		*Value*
Cancara Asset Securitisation LLC
2.80% - 2.97%, 05/03/05 - 05/23/05	$	58,383	$	58,368
Cantabric Finance LLC
3.04% - 3.12%, 06/28/05 - 07/25/05		22,005		21,862
Chariot Funding LLC
2.99%, 05/20/05		4,185		4,179
Charta LLC
2.99%, 06/16/05 - 06/21/05		36,968		36,822
Chesham Finance LLC
2.89% - 3.01%, 05/10/05 - 06/21/05		62,494		62,418
Corporate Asset Funding
2.75% - 2.99%, 05/05/05 - 06/16/05		32,567		32,489
CRC Funding LLC
2.95% - 3.00%, 05/02/05 - 06/29/05		30,807		30,757
DEPFA Bank PLC
2.28%, 05/03/05		8,802		8,801
Deutsche Bank Financial LLC
2.80%, 05/03/05		52,812		52,807
Edison Asset Securitization
2.26% - 3.12%, 05/03/05 - 09/06/05		59,853		59,704
Fairway Finance LLC
3.15%, 09/15/05		15,660		15,473
Falcon Asset Securitization Corp.
2.79% - 3.02%, 05/03/05 - 06/01/05		35,269		35,227
Ford Credit Auto Receivables
2.74%, 05/04/05		8,626		8,625
Fortis Funding LLC
2.35%, 05/09/05		24,645		24,634
Gemini Securitization Corp.
3.02%, 06/27/05		1,760		1,752
General Electric Capital Corp.
2.74%, 07/07/05		8,802		8,758
Georgetown Funding Co. LLC
2.81% - 3.05%, 05/03/05 - 06/16/05		38,728		38,676
Grampian Funding LLC
3.00% - 3.13%, 08/22/05 - 09/09/05		52,812		52,300
Jupiter Securization Corp.
2.99% - 3.02%, 05/19/05 - 06/03/05		71,063		70,922
Kitty Hawk Funding Corp.
2.88%, 05/04/05		13,294		13,291
Moat Funding LLC
2.74%, 05/02/05		12,323		12,323
Mortgage Interest Networking Trust
2.82% - 3.05%, 05/02/05 - 05/24/05		22,885		22,883
Nordea North America Inc.
2.74%, 07/11/05		8,802		8,755
Park Granada LLC
3.04%, 05/25/05 - 05/31/05		11,442		11,419
Ranger Funding Co. LLC
2.89% - 3.02%, 05/04/05 - 05/27/05		28,457		28,428
Santander Central Hispano
2.75%, 07/08/05		22,005		21,892
Scaldis Capital LLC
2.75% - 2.99%, 05/16/05 - 07/08/05		51,936		51,850
Societe Generale
2.75% - 2.79%, 05/02/05 - 05/03/05		60,733		60,730
Sydney Capital Corp.
2.81%, 05/04/05		5,809		5,808
Tulip Funding Corp.
2.80% - 3.02%, 05/03/05 - 07/01/05		48,411		48,389
UBS Finance (Delaware)
2.79%, 05/04/05		14,083		14,081
Windmill Funding Corp.
2.80%, 05/04/05		5,440		5,439

				1,045,897

FLOATING RATE NOTES³ – 2.56%
Allstate Life Global Funding II
2.91%, 03/08/06⁴		8,098		8,099


SCHEDULES OF INVESTMENTS		29

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR LARGE VALUE INDEX FUND

April 30, 2005


*Security*	*Principal*		*Value*
American Express Centurion Bank
2.98% - 3.04%, 10/26/05 - 01/24/06	$	61,613	$	61,622
Bank of Nova Scotia
2.80% - 2.94%, 09/26/05 - 01/03/06		11,442		11,440
Beta Finance Inc.
2.81% - 3.16%, 05/04/05 - 04/25/06⁴		67,599		67,602
BMW US Capital LLC
2.92%, 04/18/06⁴		17,604		17,604
Canadian Imperial Bank of Commerce
2.86% - 3.00%, 09/13/05 - 12/14/05		59,853		59,845
CC USA Inc.
2.81% - 3.12%, 05/04/05 - 03/23/06⁴		45,770		45,769
Commodore CDO Ltd.
3.08%, 12/12/05		4,401		4,401
Den Danske Bank NY
2.85% - 2.96%, 08/12/05 - 10/17/05		52,812		52,805
DEPFA Bank PLC
2.99%, 03/15/06		17,604		17,604
Dorada Finance Inc.
3.00% - 3.12%, 07/29/05 - 03/27/06⁴		38,200		38,202
Fairway Finance LLC
2.94%, 06/20/05		8,802		8,802
Fifth Third Bancorp
2.98%, 02/23/06⁴		35,208		35,208
Five Finance Inc.
3.01%, 02/27/06⁴		8,802		8,803
General Electric Capital Corp.
3.01%, 05/09/06		7,922		7,931
General Electric Commercial Equipment Financing LLC
2.95%, 11/20/05		5,064		5,064
Greenwich Capital Holdings Inc.
2.83%, 09/02/05		11,443		11,443
Hartford Life Global Funding Trust
2.94%, 04/15/06		17,604		17,604
HBOS Treasury Services PLC
2.87% - 3.08%, 01/10/06 - 04/24/06		52,812		52,812
K2 USA LLC
2.87% - 3.11%, 06/10/05 - 02/15/06⁴		79,217		79,220
Leafs LLC
2.99%, 01/20/06 - 02/21/06⁴		18,484		18,484
Links Finance LLC
2.92% - 3.15%, 11/16/05 - 02/06/06⁴		36,968		36,983
Lothian Mortgages PLC
3.01%, 01/24/06⁴		26,406		26,406
Marshall & Ilsley Corp.
3.09%, 02/20/06		17,604		17,621
MetLife Global Funding I
2.86%, 05/05/06⁴		26,406		26,406
National City Bank (Ohio)
2.84% - 2.95%, 06/10/05 - 08/09/05		44,010		44,007
Nationwide Building Society
2.89% - 3.12%, 01/13/06 - 04/28/06⁴		65,134		65,146
Norddeutsche Landesbank
3.11%, 07/27/05		17,604		17,602
Northern Rock PLC
2.88% - 2.99%, 10/25/05 - 02/03/06⁴		52,812		52,812
Permanent Financing PLC
2.87% - 2.89%, 06/10/05 - 03/10/06		62,494		62,494
Royal Bank of Scotland
2.79% - 2.91%, 06/20/05 - 04/05/06		23,897		23,890
Sedna Finance Inc.
2.92%, 01/10/06 - 01/17/06⁴		9,682		9,680
Sigma Finance Inc.
2.82% - 3.16%, 08/17/05 - 01/09/06⁴		89,780		89,783


30		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR LARGE VALUE INDEX FUND

April 30, 2005


*Security*	Shares or Principal		*Value*
Societe Generale
2.99%, 03/30/06	$	14,963	$	14,959
SunTrust Bank
3.17%, 04/28/06		26,406		26,406
Tango Finance Corp.
2.74% - 2.99%, 05/17/05 - 09/15/05⁴		47,706		47,704
Wachovia Asset Securitization Inc.
3.00% - 3.01%, 05/25/05		47,952		47,951
Wells Fargo & Co.
2.92%, 05/15/06⁴		8,802		8,803
WhistleJacket Capital LLC
2.86% - 2.97%, 06/15/05 - 01/17/06⁴		61,613		61,611
White Pine Finance LLC
2.80% - 3.09%, 05/20/05 - 01/13/06⁴		75,520		75,517
Windmill Funding Corp.
2.78%, 05/03/05		12,323		12,322
Winston Funding Ltd.
3.22%, 07/23/05⁴		12,569		12,569
World Savings Bank
2.86%, 09/09/05		6,161		6,161

				1,417,197

MONEY MARKET FUNDS – 0.21%
Barclays Global Investors Funds Government Money Market Fund, Institutional Shares^3,5		70,415		70,415
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares⁵		36,045		36,045
BlackRock Temp Cash Money Market Fund³		2,550		2,550
Short-Term Investment Co. - Prime Money Market Portfolio, Institutional Shares³		7,132		7,132

				116,142

REPURCHASE AGREEMENTS³ – 1.45%
Bank of America N.A. Repurchase Agreement, dated 4/29/05, due 5/2/05, with a maturity value of $440,204 and an effective yield of 2.97%.⁶	$	440,095		440,095

*Security*	*Principal*		*Value*
Goldman Sachs & Co. Repurchase Agreements, dated 4/29/05, due 5/2/05, with a total maturity value of $214,057 and effective yields of 2.96% - 3.00%.⁶	$	214,004	$	214,004
Merrill Lynch Government Securities Inc. Repurchase Agreements, dated 4/29/05, due 5/2/05, with a total maturity value of $149,467 and effective yields of 2.96% - 3.00%.⁶		149,430		149,430

				803,529

TIME DEPOSITS³ – 0.95%
American Express Centurion Bank
3.00%, 05/25/05		44,010		44,010
Banco Bilbao Vizcaya Argentaria SA
3.03% - 3.18%, 06/27/05 - 09/14/05		25,526		25,526
BNP Paribas (New York)
2.78% - 3.03%, 07/11/05 - 08/23/05		24,645		24,646
Credit Suisse First Boston
2.75% - 2.81%, 05/03/05		22,885		22,885
Dexia Credit Local SA
2.81% - 3.01%, 05/04/05 - 06/21/05		34,327		34,328
First Tennessee Bank
3.00% - 3.04%, 06/14/05 - 06/27/05		30,807		30,807
HBOS Treasury Services PLC
3.39%, 12/14/05		10,562		10,563
Natexis Banques
2.98%, 08/18/05		17,604		17,604
Norddeutsche Landesbank
2.11%, 06/07/05		17,604		17,604
Societe Generale
2.81%, 05/03/05		12,323		12,323
SunTrust Bank
2.68%, 05/03/05		17,604		17,604


SCHEDULES OF INVESTMENTS		31

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR LARGE VALUE INDEX FUND

April 30, 2005


*Security*	*Principal*		*Value*
Svenska Handelsbanken AB
3.00%, 06/20/05	$	8,802	$	8,802
Toronto-Dominion Bank
1.77% - 3.18%, 05/10/05 - 11/09/05		53,692		53,690
UBS AG
2.67% - 3.40%, 11/09/05 - 12/15/05		14,083		14,083
Washington Mutual Bank
2.81% - 3.15%, 05/02/05 - 07/28/05		113,545		113,546
Wells Fargo Bank N.A.
3.04%, 06/29/05		52,812		52,812
World Savings Bank
2.75%, 05/03/05		24,645		24,645

				525,478

U.S. GOVERNMENT AGENCY NOTES³ – 0.07%
Federal Home Loan Mortgage Corp.
2.06%, 05/31/05		8,776		8,761
Federal National Mortgage Association
2.33%, 07/22/05		26,406		26,268

				35,029

TOTAL SHORT-TERM INVESTMENTS (Cost: $3,943,272)				3,943,272

TOTAL INVESTMENTS IN SECURITIES – 106.99% (Cost: $58,534,562)				59,189,570
Other Assets, Less Liabilities – (6.99%)				(3,866,449	)

NET ASSETS – 100.00%			$	55,323,121

¹	All or a portion of this security represents a security on loan. See Note 5.

²	Non-income earning security.

³	All or a portion of this security (these securities) represent(s) an investment of securities lending collateral. See Note 5.

⁴	All or a portion of this security is 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	The Fund’s investment adviser is an affiliate of the issuer. See Note 2.

⁶	Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 3.12% to 7.13% and maturity dates ranging from 5/25/05 to 8/1/42.

See notes to financial statements.


32		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MORNINGSTAR MID CORE INDEX FUND

April 30, 2005


*Security*	*Shares*	*Value*
COMMON STOCKS – 99.90%

ADVERTISING – 0.80%
Harte-Hanks Inc.	3,784	$	107,844
Interpublic Group of Companies Inc.¹	30,900		397,374

			505,218

AEROSPACE & DEFENSE – 2.14%
Alliant Techsystems Inc.¹	2,753		190,453
Goodrich (B.F.) Co.²	8,693		350,328
Rockwell Collins Inc.	11,865		544,366
United Defense Industries Inc.	3,563		263,591

			1,348,738

APPAREL – 1.09%
Liz Claiborne Inc.	7,867		278,728
Polo Ralph Lauren Corp.	4,237		148,719
Reebok International Ltd.²	3,641		147,861
Timberland Co. Class A¹	1,597		110,273

			685,581

BANKS – 7.05%
Bank of Hawaii Corp.	3,881		183,765
BOK Financial Corp.¹	1,581		66,165
Cathay General Bancorp	3,206		105,381
City National Corp.	3,353		236,387
Cullen/Frost Bankers Inc.	3,804		164,789
First BanCorp (Puerto Rico)	2,763		100,186
International Bancshares Corp.	2,940		105,693
Marshall & Ilsley Corp.	14,041		598,708
North Fork Bancorp Inc.	31,888		897,647
Park National Corp.²	861		86,531
Popular Inc.	17,847		412,980
South Financial Group Inc. (The)	5,220		137,756
Synovus Financial Corp.	18,847		528,281
TCF Financial Corp.²	9,597		242,708
Westamerica Bancorp	2,356		117,659
Zions Bancorporation	6,563		459,607

			4,444,243

BEVERAGES – 1.36%
Brown-Forman Corp. Class B	2,946		163,503
Constellation Brands Inc.¹	6,972		367,494
Pepsi Bottling Group Inc.	11,325		324,688

			855,685

BUILDING MATERIALS – 1.72%
American Standard Companies Inc.	13,172		588,920
Florida Rock Industries Inc.	2,767		160,707
Vulcan Materials Co.	6,276		332,879

			1,082,506

CHEMICALS – 2.33%
Airgas Inc.	4,774		104,646
Cabot Corp.	4,563		139,400
Cytec Industries Inc.	2,672		123,233
International Flavors & Fragrances Inc.	6,388		242,105
Rohm & Haas Co.	10,555		460,831
Sigma-Aldrich Corp.	4,336		253,353
Valspar Corp. (The)	3,518		145,399

			1,468,967

COAL – 1.29%
Arch Coal Inc.	4,501		199,574
Massey Energy Co.²	5,556		200,627
Peabody Energy Corp.	9,382		410,650

			810,851

COMMERCIAL SERVICES – 2.73%
ADESA Inc.	6,775		163,887
ARAMARK Corp. Class B	7,919		194,095
BearingPoint Inc.¹	12,586		77,907
Block (H & R) Inc.	11,259		560,811
Equifax Inc.	9,973		335,591
Manpower Inc.	6,597		254,314
Valassis Communications Inc.¹	3,835		135,184

			1,721,789

COMPUTERS – 3.63%
BISYS Group Inc. (The)¹	8,887		125,484
Cadence Design Systems Inc.¹	19,965		279,510
Ceridian Corp.¹	10,963		184,946
Computer Sciences Corp.¹	13,705		595,893
Diebold Inc.	5,237		253,314
DST Systems Inc.¹	4,940		224,276
Gateway Inc.¹	17,337		59,119
Perot Systems Corp. Class A¹	5,596		70,678
Seagate Technology	15,417		271,031
Storage Technology Corp.¹	8,177		227,321

			2,291,572


SCHEDULES OF INVESTMENTS		33

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR MID CORE INDEX FUND

April 30, 2005


*Security*	*Shares*	*Value*
COSMETICS & PERSONAL CARE – 0.42%
Alberto-Culver Co.	5,999	$	266,956

			266,956

DISTRIBUTION & WHOLESALE – 1.22%
Grainger (W.W.) Inc.	5,946		328,754
Hughes Supply Inc.	4,883		127,446
Ingram Micro Inc. Class A¹	9,272		154,472
Tech Data Corp.¹	4,286		156,568

			767,240

DIVERSIFIED FINANCIAL SERVICES – 3.53%
AmeriCredit Corp.¹	11,499		269,077
E*TRADE Financial Corp.¹	26,838		298,170
Federated Investors Inc. Class B	7,015		199,577
Friedman, Billings, Ramsey Group Inc. Class A²	10,542		127,453
IndyMac Bancorp Inc.	4,517		173,814
Janus Capital Group Inc.	17,521		227,598
Jefferies Group Inc.	3,642		131,840
Nuveen Investments Inc. Class A	4,292		145,885
T. Rowe Price Group Inc.	9,506		524,446
Waddell & Reed Financial Inc. Class A	6,118		106,514
WFS Financial Inc.	517		23,239

			2,227,613

ELECTRIC – 0.35%
Reliant Energy Inc.^1,2	21,838		222,092

			222,092

ELECTRICAL COMPONENTS & EQUIPMENT – 1.55%
American Power Conversion Corp.²	13,740		333,332
AMETEK Inc.	5,027		190,373
Energizer Holdings Inc.¹	5,177		294,934
Hubbell Inc. Class B	3,698		160,678

			979,317

ELECTRONICS – 2.06%
Applera Corp. - Applied Biosystems Group	14,775		313,230
AVX Corp.²	3,932		42,820
Mettler Toledo International Inc.¹	3,232		148,187
Parker Hannifin Corp.	8,735		523,576
Sanmina-SCI Corp.¹	38,433		154,116
Vishay Intertechnology Inc.¹	10,777		115,206

			1,297,135

ENGINEERING & CONSTRUCTION – 0.32%
Jacobs Engineering Group Inc.^1,2	4,145		201,903

			201,903

ENTERTAINMENT – 0.61%
GTECH Holdings Corp.	8,639		211,396
International Speedway Corp. Class A	2,121		112,837
Regal Entertainment Group Class A	2,952		59,896

			384,129

ENVIRONMENTAL CONTROL – 0.73%
Allied Waste Industries Inc.^1,2	15,183		121,312
Republic Services Inc.	9,812		339,495

			460,807

FOOD – 1.37%
Hormel Foods Corp.	5,504		171,395
McCormick & Co. Inc. NVS	8,272		286,128
Smithfield Foods Inc.¹	6,378		192,998
Smucker (J.M.) Co. (The)²	4,292		212,969

			863,490

FOREST PRODUCTS & PAPER – 0.69%
MeadWestvaco Corp.	14,774		435,094

			435,094

HAND & MACHINE TOOLS – 1.18%
Black & Decker Corp.	5,856		489,737
Stanley Works (The)	5,978		257,233

			746,970

HEALTH CARE - PRODUCTS – 0.93%
Bausch & Lomb Inc.	3,860		289,500
Beckman Coulter Inc.	4,477		298,661

			588,161

HEALTH CARE - SERVICES – 2.87%
Coventry Health Care Inc.¹	7,742		529,785
Health Management Associates Inc. Class A	16,856		416,849
Manor Care Inc.	6,401		213,473
Triad Hospitals Inc.¹	5,621		288,076
Universal Health Services Inc. Class B	4,019		228,038
WellChoice Inc.¹	2,353		132,239

			1,808,460

HOME BUILDERS – 5.46%
Centex Corp.²	9,058		522,828


34		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR MID CORE INDEX FUND

April 30, 2005


*Security*	*Shares*	*Value*
D.R. Horton Inc.	21,393	$	652,487
Hovnanian Enterprises Inc. Class A¹	2,521		127,991
Lennar Corp. Class A	8,985		462,458
Lennar Corp. Class B	843		40,388
M.D.C. Holdings Inc.	2,243		146,647
NVR Inc.^1,2	425		305,299
Pulte Homes Inc.	7,675		548,379
Ryland Group Inc.	3,496		214,654
Standard-Pacific Corp.	2,245		160,764
Toll Brothers Inc.¹	3,487		264,315

			3,446,210

HOME FURNISHINGS – 0.60%
Leggett & Platt Inc.	13,975		376,766

			376,766

HOUSEHOLD PRODUCTS & WARES – 0.78%
Avery Dennison Corp.	7,134		373,465
Scotts Miracle-Gro Co. (The) Class A¹	1,621		117,360

			490,825

INSURANCE – 6.25%
Alleghany Corp.¹	373		100,710
Ambac Financial Group Inc.	7,924		529,719
Axis Capital Holdings Ltd.	6,224		165,558
Berkley (W.R.) Corp.	7,995		259,838
Endurance Specialty Holdings Ltd.	3,006		108,817
Erie Indemnity Co. Class A	2,176		111,803
Everest Re Group Ltd.	4,100		337,020
Gallagher (Arthur J.) & Co.²	6,777		188,672
HCC Insurance Holdings Inc.	5,016		178,419
MGIC Investment Corp.²	7,213		425,567
PMI Group Inc. (The)	7,033		247,280
RenaissanceRe Holdings Ltd.	5,199		232,759
Torchmark Corp.	8,012		428,081
Transatlantic Holdings Inc.	1,947		111,875
Unitrin Inc.	3,299		150,105
White Mountains Insurance Group Ltd.²	581		364,293

			3,940,516

INTERNET – 0.44%
Check Point Software Technologies Ltd.¹	13,175		276,016

			276,016

LEISURE TIME – 1.55%
Brunswick Corp.	6,997		293,874
Polaris Industries Inc.²	3,195		183,904
Royal Caribbean Cruises Ltd.	7,179		301,662
Sabre Holdings Corp.	10,115		197,849

			977,289

LODGING – 1.95%
Caesars Entertainment Inc.¹	19,663		392,277
Harrah’s Entertainment Inc.	8,178		536,640
MGM Mirage¹	4,338		302,836

			1,231,753

MACHINERY – 1.60%
Graco Inc.	5,106		172,430
IDEX Corp.	3,652		136,037
Rockwell Automation Inc.	12,208		564,376
Terex Corp.¹	3,652		136,512

			1,009,355

MANUFACTURING – 4.77%
Brink’s Co. (The)	4,198		135,428
Donaldson Co. Inc.	5,397		160,561
Dover Corp.	14,858		540,237
Harsco Corp.	3,037		162,935
ITT Industries Inc.	6,766		612,052
Pall Corp.	9,158		245,709
Pentair Inc.	7,325		291,389
SPX Corp.	5,573		215,619
Textron Inc.	8,554		644,544

			3,008,474

MEDIA – 2.59%
Belo (A.H.) Corp.	7,224		169,258
Cablevision Systems Corp.¹	13,752		356,864
Gemstar-TV Guide International Inc.¹	18,555		71,437
Hearst-Argyle Television Inc.	2,018		50,652
Hollinger International Inc.	3,534		33,396
Lee Enterprises Inc.	2,666		110,666
McClatchy Co. (The) Class A²	1,498		105,909
Meredith Corp.	2,980		140,060
New York Times Co. Class A²	10,685		356,452
UnitedGlobalCom Inc. Class A¹	26,702		238,983

			1,633,677


SCHEDULES OF INVESTMENTS		35

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR MID CORE INDEX FUND

April 30, 2005


*Security*	*Shares*	*Value*
METAL FABRICATE & HARDWARE – 0.79%
Precision Castparts Corp.	4,754	$	350,180
Timken Co. (The)	6,035		149,909

			500,089

MINING – 0.09%
Southern Peru Copper Corp.²	1,061		54,260

			54,260

OFFICE FURNISHINGS – 0.60%
Herman Miller Inc.	5,264		150,550
HNI Corp.	3,460		175,284
Steelcase Inc. Class A	4,058		53,322

			379,156

OIL & GAS – 1.79%
Chesapeake Energy Corp.	19,547		376,084
Newfield Exploration Co.¹	4,494		319,209
Pioneer Natural Resources Co.	10,607		431,281

			1,126,574

OIL & GAS SERVICES – 0.21%
Tidewater Inc.	3,924		135,260

			135,260

PACKAGING & CONTAINERS – 1.87%
Ball Corp.	7,644		301,938
Packaging Corp. of America	4,575		102,434
Pactiv Corp.¹	11,001		235,861
Sealed Air Corp.¹	6,134		297,131
Smurfit-Stone Container Corp.	18,567		243,413

			1,180,777

PHARMACEUTICALS – 1.83%
AmerisourceBergen Corp.	8,232		504,457
King Pharmaceuticals Inc.¹	17,864		142,912
Omnicare Inc.	7,603		263,596
Watson Pharmaceuticals Inc.¹	8,013		240,390

			1,151,355

PIPELINES – 2.59%
Equitable Resources Inc.	4,295		247,564
Kinder Morgan Inc.	7,134		545,466
Western Gas Resources Inc.	4,364		145,801
Williams Companies Inc.	40,659		692,016

			1,630,847

REAL ESTATE – 0.21%
Forest City Enterprises Inc. Class A²	2,092		132,110

			132,110

REAL ESTATE INVESTMENT TRUSTS – 6.95%
AMB Property Corp.²	6,053		236,006
Catellus Development Corp.	6,482		179,551
CenterPoint Properties Trust	3,572		147,202
Cousins Properties Inc.	2,924		78,948
Developers Diversified Realty Corp.	7,471		317,069
Essex Property Trust Inc.²	1,556		118,178
Federal Realty Investment Trust²	3,821		204,424
General Growth Properties Inc.²	15,979		624,939
Host Marriott Corp.²	23,462		394,631
New Century Financial Corp.²	3,515		159,757
Pan Pacific Retail Properties Inc.	2,986		180,414
ProLogis	13,461		532,921
Public Storage Inc.²	6,433		377,617
Regency Centers Corp.²	4,485		236,135
United Dominion Realty Trust Inc.²	9,773		216,472
Ventas Inc.	6,220		167,816
Weingarten Realty Investors	5,858		210,947

			4,383,027

RETAIL – 7.25%
AnnTaylor Stores Corp.^1,2	5,114		125,242
AutoZone Inc.¹	4,719		391,677
Barnes & Noble Inc.¹	4,144		147,526
BJ’s Wholesale Club Inc.^1,2	5,145		137,114
Brinker International Inc.¹	6,460		218,348
Circuit City Stores Inc.	14,001		221,216
Darden Restaurants Inc.	10,806		324,180
Family Dollar Stores Inc.	11,620		313,508
Foot Locker Inc.	11,415		304,324
Nordstrom Inc.	8,713		442,882
Outback Steakhouse Inc.²	5,395		217,958
RadioShack Corp.	11,774		293,997
Regis Corp.	3,278		117,123
Sears Holdings Corp.¹	6,704		906,649
7-Eleven Inc.¹	2,323		54,335
Wendy’s International Inc.	8,315		356,963

			4,573,042


36		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR MID CORE INDEX FUND

April 30, 2005


*Security*	*Shares*		*Value*
SAVINGS & LOANS – 1.03%
Capitol Federal Financial²		1,585	$	53,811
New York Community Bancorp Inc.²		17,581		311,184
People’s Bank		6,860		284,896

				649,891

SEMICONDUCTORS – 2.48%
Advanced Micro Devices Inc.¹		25,980		369,695
Agere Systems Inc. Class A¹		59,752		69,910
Agere Systems Inc. Class B¹		67,563		79,724
Fairchild Semiconductor International Inc. Class A¹		8,838		118,871
Freescale Semiconductor Inc. Class A^1,2		9,605		179,806
LSI Logic Corp.¹		28,444		152,460
Micron Technology Inc.¹		44,740		434,425
Teradyne Inc.¹		14,212		156,616

				1,561,507

SOFTWARE – 0.66%
BMC Software Inc.¹		16,441		266,344
Compuware Corp.¹		25,480		151,606

				417,950

TELECOMMUNICATIONS – 2.08%
ADC Telecommunications Inc.¹		59,985		136,166
Avaya Inc.¹		30,463		264,419
NTL Inc.¹		5,137		328,665
Scientific-Atlanta Inc.		11,164		341,395
Tellabs Inc.¹		31,003		240,583

				1,311,228

TEXTILES – 0.49%
Mohawk Industries Inc.^1,2		3,935		306,182

				306,182

TRANSPORTATION – 0.72%
CNF Inc.		3,815		163,091
Overseas Shipholding Group Inc.		2,017		113,819
Ryder System Inc.		4,725		174,494

				451,404

WATER – 0.30%
Aqua America Inc.²		7,014		187,274

				187,274

TOTAL COMMON STOCKS (Cost: $64,294,685)				62,987,331

*Security*	*Principal*		*Value*
SHORT-TERM INVESTMENTS – 7.38%

COMMERCIAL PAPER³ – 1.96%
Alpine Securitization Corp.
2.80%, 05/04/05	$	59,383	$	59,370
Amstel Funding Corp.
2.95%, 08/19/05		8,631		8,553
Amsterdam Funding Corp.
2.80% - 3.02%, 05/04/05 - 05/27/05		23,463		23,439
ANZ National Bank Ltd.
2.94%, 08/15/05		10,382		10,293
Blue Ridge Asset Funding Corp.
3.02%, 06/02/05		31,145		31,064
Bryant Park Funding LLC
2.75%, 05/03/05		4,153		4,152
Cancara Asset Securitisation LLC
2.80% - 2.97%, 05/03/05 - 05/23/05		68,862		68,844
Cantabric Finance LLC
3.04% - 3.12%, 06/28/05 - 07/25/05		25,954		25,785
Chariot Funding LLC
2.99%, 05/20/05		4,937		4,929
Charta LLC
2.99%, 06/16/05 - 06/21/05		43,603		43,431
Chesham Finance LLC
2.89% - 3.01%, 05/10/05 - 06/21/05		73,710		73,620
Corporate Asset Funding
2.75% - 2.99%, 05/05/05 - 06/16/05		38,412		38,320
CRC Funding LLC
2.95% - 3.00%, 05/02/05 - 06/29/05		36,336		36,277
DEPFA Bank PLC
2.28%, 05/03/05		10,382		10,381
Deutsche Bank Financial LLC
2.80%, 05/03/05		62,290		62,285
Edison Asset Securitization
2.26% - 3.12%, 05/03/05 - 09/06/05		70,596		70,419


SCHEDULES OF INVESTMENTS		37

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR MID CORE INDEX FUND

April 30, 2005


*Security*	*Principal*		*Value*
Fairway Finance LLC
3.15%, 09/15/05	$	18,470	$	18,250
Falcon Asset Securitization Corp.
2.79% - 3.02%, 05/03/05 - 06/01/05		41,599		41,548
Ford Credit Auto Receivables
2.74%, 05/04/05		10,174		10,173
Fortis Funding LLC
2.35%, 05/09/05		29,069		29,055
Gemini Securitization Corp.
3.02%, 06/27/05		2,076		2,067
General Electric Capital Corp.
2.74%, 07/07/05		10,382		10,330
Georgetown Funding Co. LLC
2.81% - 3.05%, 05/03/05 - 06/16/05		45,679		45,618
Grampian Funding LLC
3.00% - 3.13%, 08/22/05 - 09/09/05		62,290		61,687
Jupiter Securization Corp.
2.99% - 3.02%, 05/19/05 - 06/03/05		83,818		83,651
Kitty Hawk Funding Corp.
2.88%, 05/04/05		15,679		15,677
Moat Funding LLC
2.74%, 05/02/05		14,534		14,534
Mortgage Interest Networking Trust
2.82% - 3.05%, 05/02/05 - 05/24/05		26,992		26,989
Nordea North America Inc.
2.74%, 07/11/05		10,382		10,326
Park Granada LLC
3.04%, 05/25/05 - 05/31/05		13,496		13,469
Ranger Funding Co. LLC
2.89% - 3.02%, 05/04/05 - 05/27/05		33,564		33,530
Santander Central Hispano
2.75%, 07/08/05		25,954		25,822
Scaldis Capital LLC
2.75% - 2.99%, 05/16/05 - 07/08/05		61,258		61,157
Societe Generale
2.75% - 2.79%, 05/02/05 - 05/03/05		71,634		71,631
Sydney Capital Corp.
2.81%, 05/04/05		6,852		6,851
Tulip Funding Corp.
2.80% - 3.02%, 05/03/05 - 07/01/05		57,099		57,075
UBS Finance (Delaware)
2.79%, 05/04/05		16,611		16,608
Windmill Funding Corp.
2.80%, 05/04/05		6,416		6,415

				1,233,625

FLOATING RATE NOTES³ – 2.65%
Allstate Life Global Funding II
2.91%, 03/08/06⁴		9,551		9,551
American Express Centurion Bank
2.98% - 3.04%, 10/26/05 - 01/24/06		72,672		72,682
Bank of Nova Scotia
2.80% - 2.94%, 09/26/05 - 01/03/06		13,496		13,494
Beta Finance Inc.
2.81% - 3.16%, 05/04/05 - 04/25/06⁴		79,731		79,736
BMW US Capital LLC
2.92%, 04/18/06⁴		20,763		20,763
Canadian Imperial Bank of Commerce
2.86% - 3.00%, 09/13/05 - 12/14/05		70,596		70,585
CC USA Inc.
2.81% - 3.12%, 05/04/05 - 03/23/064		53,985		53,983
Commodore CDO Ltd.
3.08%, 12/12/05		5,191		5,191
Den Danske Bank NY
2.85% - 2.96%, 08/12/05 - 10/17/05		62,290		62,284
DEPFA Bank PLC
2.99%, 03/15/06		20,763		20,763


38		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR MID CORE INDEX FUND

April 30, 2005


*Security*	*Principal*		*Value*
Dorada Finance Inc.
3.00% - 3.12%, 07/29/05 - 03/27/06⁴	$	45,057	$	45,058
Fairway Finance LLC
2.94%, 06/20/05		10,382		10,382
Fifth Third Bancorp
2.98%, 02/23/06⁴		41,527		41,527
Five Finance Inc.
3.01%, 02/27/06⁴		10,382		10,383
General Electric Capital Corp.
3.01%, 05/09/06		9,344		9,355
General Electric Commercial Equipment Financing LLC
2.95%, 11/20/05		5,973		5,973
Greenwich Capital Holdings Inc.
2.83%, 09/02/05		13,496		13,497
Hartford Life Global Funding Trust
2.94%, 04/15/06		20,763		20,763
HBOS Treasury Services PLC
2.87% - 3.08%, 01/10/06 - 04/24/06		62,290		62,289
K2 USA LLC
2.87% - 3.11%, 06/10/05 - 02/15/06⁴		93,435		93,438
Leafs LLC
2.99%, 01/20/06 - 02/21/06⁴		21,802		21,802
Links Finance LLC
2.92% - 3.15%, 11/16/05 - 02/06/06⁴		43,603		43,620
Lothian Mortgages PLC
3.01%, 01/24/06⁴		31,145		31,145
Marshall & Ilsley Corp.
3.09%, 02/20/06		20,763		20,783
MetLife Global Funding I
2.86%, 05/05/06⁴		31,145		31,145
National City Bank (Ohio)
2.84% - 2.95%, 06/10/05 - 08/09/05		51,908		51,907
Nationwide Building Society
2.89% - 3.12%, 01/13/06 - 04/28/06⁴		76,825		76,838
Norddeutsche Landesbank
3.11%, 07/27/05		20,763		20,762
Northern Rock PLC
2.88% - 2.99%, 10/25/05 - 02/03/06⁴		62,290		62,290
Permanent Financing PLC
2.87% - 2.89%, 06/10/05 - 03/10/06		73,710		73,710
Royal Bank of Scotland
2.79% - 2.91%, 06/20/05 - 04/05/06		28,186		28,178
Sedna Finance Inc.
2.92%, 01/10/06 - 01/17/06⁴		11,420		11,418
Sigma Finance Inc.
2.82% - 3.16%, 08/17/05 - 01/09/06⁴		105,893		105,895
Societe Generale
2.99%, 03/30/06		17,649		17,643
SunTrust Bank
3.17%, 04/28/06		31,145		31,145
Tango Finance Corp.
2.74% - 2.99%, 05/17/05 - 09/15/05⁴		56,269		56,268
Wachovia Asset Securitization Inc.
3.00% - 3.01%, 05/25/05		56,558		56,558
Wells Fargo & Co.
2.92%, 05/15/06⁴		10,382		10,383
WhistleJacket Capital LLC
2.86% - 2.97%, 06/15/05 - 01/17/06⁴		72,672		72,667
White Pine Finance LLC
2.80% - 3.09%, 05/20/05 - 01/13/06⁴		89,075		89,069
Windmill Funding Corp.
2.78%, 05/03/05		14,534		14,533
Winston Funding Ltd.
3.22%, 07/23/05⁴		14,825		14,825
World Savings Bank
2.86%, 09/09/05		7,267		7,267

				1,671,548


SCHEDULES OF INVESTMENTS		39

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR MID CORE INDEX FUND

April 30, 2005


*Security*	Shares or Principal		*Value*
MONEY MARKET FUNDS – 0.22%
Barclays Global Investors Funds Government Money Market Fund, Institutional Shares^3,5		83,054	$	83,054
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares⁵		45,298		45,298
BlackRock Temp Cash Money Market Fund³		3,008		3,008
Short-Term Investment Co. - Prime Money Market Portfolio, Institutional Shares³		8,412		8,412

				139,772

REPURCHASE AGREEMENTS³ – 1.50%
Bank of America N.A. Repurchase Agreement, dated 4/29/05, due 5/2/05, with a maturity value of $519,213 and an effective yield of 2.97%.⁶	$	519,085		519,085
Goldman Sachs & Co. Repurchase Agreements, dated 4/29/05, due 5/2/05, with a total maturity value of $252,476 and effective yields of 2.96% - 3.00%.⁶		252,414		252,414
Merrill Lynch Government Securities Inc. Repurchase Agreements, dated 4/29/05, due 5/2/05, with a total maturity value of $176,294 and effective yields of 2.96% - 3.00%.⁶		176,250		176,250

				947,749

TIME DEPOSITS³ – 0.98%
American Express Centurion Bank
3.00%, 05/25/05		51,908		51,908
Banco Bilbao Vizcaya Argentaria SA
3.03% - 3.18%, 06/27/05 - 09/14/05		30,107		30,107

*Security*	*Principal*		*Value*
BNP Paribas (New York)
2.78% - 3.03%, 07/11/05 - 08/23/05	$	29,069	$	29,068
Credit Suisse First Boston
2.75% - 2.81%, 05/03/05		26,992		26,992
Dexia Credit Local SA
2.81% - 3.01%, 05/04/05 - 06/21/05		40,489		40,488
First Tennessee Bank
3.00% - 3.04%, 06/14/05 - 06/27/05		36,336		36,336
HBOS Treasury Services PLC
3.39%, 12/14/05		12,458		12,458
Natexis Banques
2.98%, 08/18/05		20,763		20,763
Norddeutsche Landesbank
2.11%, 06/07/05		20,763		20,763
Societe Generale
2.81%, 05/03/05		14,534		14,534
SunTrust Bank
2.68%, 05/03/05		20,763		20,763
Svenska Handelsbanken AB
3.00%, 06/20/05		10,382		10,382
Toronto-Dominion Bank
1.77% - 3.18%, 05/10/05 - 11/09/05		63,328		63,328
UBS AG
2.67% - 3.40%, 11/09/05 - 12/15/05		16,611		16,611
Washington Mutual Bank
2.81% - 3.15%, 05/02/05 - 07/28/05		133,924		133,924
Wells Fargo Bank N.A.
3.04%, 06/29/05		62,290		62,290
World Savings Bank
2.75%, 05/03/05		29,069		29,069

				619,784

U.S. GOVERNMENT AGENCY NOTES³ – 0.07%
Federal Home Loan Mortgage Corp.
2.06%, 05/31/05		10,351		10,334


40		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR MID CORE INDEX FUND

April 30, 2005


*Security*	*Principal*		*Value*
Federal National Mortgage Association
2.33%, 07/22/05	$	31,145	$	30,982

				41,316

TOTAL SHORT-TERM INVESTMENTS (Cost: $4,653,794)				4,653,794

TOTAL INVESTMENTS IN SECURITIES – 107.28% (Cost: $68,948,479)				67,641,125
Other Assets, Less Liabilities – (7.28%)				(4,588,074	)

NET ASSETS – 100.00%			$	63,053,051

NVS – Non-Voting Shares

¹	Non-income earning security.

²	All or a portion of this security represents a security on loan. See Note 5.

³	All or a portion of this security (these securities) represent(s) an investment of securities lending collateral. See Note 5.

⁴	All or a portion of this security is 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	The Fund’s investment adviser is an affiliate of the issuer. See Note 2.

⁶	Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 3.12% to 7.13% and maturity dates ranging from 5/25/05 to 8/1/42.

See notes to financial statements.


SCHEDULES OF INVESTMENTS		41

Schedule of Investments

iSHARES^® MORNINGSTAR MID GROWTH INDEX FUND

April 30, 2005


*Security*	*Shares*	*Value*
COMMON STOCKS – 99.96%

ADVERTISING – 0.84%
Getty Images Inc.¹	1,695	$	121,277
Lamar Advertising Co.¹	3,099		115,841
West Corp.¹	772		25,005

			262,123

AEROSPACE & DEFENSE – 0.96%
L-3 Communications Holdings Inc.	4,215		299,139

			299,139

AIRLINES – 0.23%
JetBlue Airways Corp.^1,2	3,518		70,536

			70,536

APPAREL – 1.26%
Coach Inc.¹	13,780		369,304
Columbia Sportswear Co.^1,2	548		23,564

			392,868

AUTO MANUFACTURERS – 0.30%
Oshkosh Truck Corp.	1,238		93,036

			93,036

BANKS – 1.52%
Commerce Bancorp Inc.²	5,801		162,370
East West Bancorp Inc.	1,843		59,197
First Marblehead Corp. (The)^1,2	1,182		45,542
Investors Financial Services Corp.	2,405		100,890
R&G Financial Corp. Class B	1,081		15,361
UCBH Holdings Inc.	3,316		52,161
W Holding Co. Inc.	4,807		38,889

			474,410

BIOTECHNOLOGY – 3.80%
Affymetrix Inc.^1,2	2,193		101,119
Celgene Corp.¹	6,003		227,574
Charles River Laboratories International Inc.¹	2,209		104,640
Chiron Corp.¹	3,967		135,473
Invitrogen Corp.¹	1,912		140,092
MedImmune Inc.¹	9,101		230,892
Millennium Pharmaceuticals Inc.¹	11,034		96,658
Millipore Corp.¹	1,792		86,410
Protein Design Labs Inc.¹	3,775		67,497

			1,190,355

CHEMICALS – 0.90%
Ecolab Inc.	6,772		221,512
Mosaic Co. (The)^1,2	4,622		59,393

			280,905

COAL – 0.45%
CONSOL Energy Inc.	3,262		141,049

			141,049

COMMERCIAL SERVICES – 3.52%
Alliance Data Systems Corp.¹	1,642		66,337
Career Education Corp.¹	3,715		116,800
ChoicePoint Inc.¹	3,217		126,975
Corporate Executive Board Co. (The)	1,411		92,745
Education Management Corp.¹	2,168		60,704
Hewitt Associates Inc. Class A^1,2	1,631		43,401
Interactive Data Corp.¹	1,289		25,844
Iron Mountain Inc.^1,2	3,999		118,770
ITT Educational Services Inc.^1,2	1,660		76,327
Laureate Education Inc.¹	1,626		72,227
Pharmaceutical Product Development Inc.¹	1,808		82,047
Robert Half International Inc.	6,298		156,316
Weight Watchers International Inc.^1,2	1,519		63,418

			1,101,911

COMPUTERS – 5.44%
Affiliated Computer Services Inc. Class A¹	4,468		212,990
Brocade Communications Systems Inc.¹	9,593		41,826
Cognizant Technology Solutions Corp.¹	4,863		204,295
Henry (Jack) & Associates Inc.	2,769		47,599
National Instruments Corp.	1,898		40,883
NCR Corp.¹	6,820		225,060
Network Appliance Inc.¹	13,102		348,906
SanDisk Corp.¹	5,919		140,280
SunGard Data Systems Inc.¹	10,559		352,671
Synopsys Inc.¹	5,300		87,132

			1,701,642

DISTRIBUTION & WHOLESALE – 0.82%
CDW Corp.	2,360		129,068
Fastenal Co.²	2,388		127,901

			256,969


42		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR MID GROWTH INDEX FUND

April 30, 2005


*Security*	*Shares*	*Value*
DIVERSIFIED FINANCIAL SERVICES – 2.64%
Ameritrade Holding Corp.¹	10,371	$	108,688
BlackRock Inc.	498		37,330
CapitalSource Inc.¹	2,410		50,610
Chicago Mercantile Exchange Holdings Inc.	997		194,933
Doral Financial Corp.	3,404		47,826
Eaton Vance Corp.	4,866		114,010
Legg Mason Inc.	3,853		273,024

			826,421

ELECTRIC – 0.30%
NRG Energy Inc.^1,2	3,051		94,886

			94,886

ELECTRICAL COMPONENTS & EQUIPMENT – 0.37%
Molex Inc.	2,090		53,107
Molex Inc. Class A²	2,701		61,826

			114,933

ELECTRONICS – 4.39%
Amphenol Corp. Class A	3,179		125,380
Fisher Scientific International Inc.¹	4,205		249,693
FLIR Systems Inc.¹	2,475		65,835
Garmin Ltd.²	2,096		82,792
Gentex Corp.²	2,801		90,920
Jabil Circuit Inc.¹	6,011		165,904
PerkinElmer Inc.	4,357		80,605
Symbol Technologies Inc.	8,687		116,145
Tektronix Inc.	3,379		73,189
Thermo Electron Corp.¹	5,968		149,081
Waters Corp.¹	4,417		175,046

			1,374,590

ENVIRONMENTAL CONTROL – 0.25%
Stericycle Inc.^1,2	1,638		79,721

			79,721

FOOD – 0.98%
Dreyer’s Grand Ice Cream Holdings Inc.	1,022		82,690
Whole Foods Market Inc.	2,262		225,567

			308,257

HEALTH CARE - PRODUCTS – 5.17%
Bard (C.R.) Inc.	3,796		270,161
Cooper Companies Inc.	1,603		108,283
Cytyc Corp.¹	4,016		85,581
Dade Behring Holdings Inc.¹	1,575		97,130
DENTSPLY International Inc.	2,589		141,515
Edwards Lifesciences Corp.^1,2	2,166		95,391
Gen-Probe Inc.¹	1,794		90,041
Henry Schein Inc.¹	3,141		117,819
IDEXX Laboratories Inc.¹	1,222		69,336
INAMED Corp.¹	1,286		78,240
Patterson Companies Inc.¹	4,261		215,394
Respironics Inc.¹	1,271		80,315
Varian Medical Systems Inc.¹	5,001		168,734

			1,617,940

HEALTH CARE - SERVICES – 3.71%
Community Health Systems Inc.¹	3,164		115,328
Covance Inc.¹	2,273		103,740
DaVita Inc.¹	3,605		145,282
Laboratory Corp. of America Holdings¹	4,941		244,580
Lincare Holdings Inc.¹	3,653		155,910
Quest Diagnostics Inc.	2,875		304,175
Renal Care Group Inc.¹	2,435		92,895

			1,161,910

HOLDING COMPANIES - DIVERSIFIED – 0.32%
Leucadia National Corp.	2,899		100,827

			100,827

HOME FURNISHINGS – 0.61%
Harman International Industries Inc.	2,410		189,378

			189,378

HOUSEHOLD PRODUCTS & WARES – 0.36%
Church & Dwight Co. Inc.	2,241		80,721
Fossil Inc.¹	1,404		32,657

			113,378

INSURANCE – 0.65%
Brown & Brown Inc.	2,032		88,900
Markel Corp.¹	331		113,566

			202,466

INTERNET – 2.56%
CheckFree Corp.¹	2,376		87,152
Macromedia Inc.¹	2,687		106,432
McAfee Inc.¹	5,670		118,560
Monster Worldwide Inc.¹	3,844		88,450


SCHEDULES OF INVESTMENTS		43

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR MID GROWTH INDEX FUND

April 30, 2005


*Security*	*Shares*	*Value*
TIBCO Software Inc.¹	6,296	$	44,953
VeriSign Inc.¹	9,350		247,401
WebMD Corp.^1,2	11,326		107,597

			800,545

LODGING – 1.99%
Boyd Gaming Corp.	1,665		87,879
Hilton Hotels Corp.	13,232		288,855
Station Casinos Inc.	1,752		113,057
Wynn Resorts Ltd.¹	2,514		133,091

			622,882

MACHINERY – 0.40%
Zebra Technologies Corp. Class A¹	2,605		124,415

			124,415

MANUFACTURING – 0.33%
Roper Industries Inc.	1,529		103,467

			103,467

MEDIA – 4.19%
Citadel Broadcasting Corp.¹	2,031		25,530
Dex Media Inc.	4,059		88,892
Dow Jones & Co. Inc.	1,639		54,808
Entercom Communications Corp.¹	1,783		57,466
Liberty Media International Inc. Class A¹	5,603		232,356
Scripps (E.W.) Co. Class A	2,968		151,160
Sirius Satellite Radio Inc.^1,2	41,905		199,468
Washington Post Co. (The) Class B	222		191,864
Westwood One Inc.¹	2,768		50,654
Wiley (John) & Sons Inc. Class A	1,436		51,926
XM Satellite Radio Holdings Inc. Class A^1,2	7,478		207,440

			1,311,564

MINING – 0.70%
Freeport-McMoRan Copper & Gold Inc.	6,358		220,368

			220,368

OIL & GAS – 8.59%
Diamond Offshore Drilling Inc.	2,221		97,968
ENSCO International Inc.	5,524		180,082
EOG Resources Inc.	8,731		415,159
GlobalSantaFe Corp.	7,845		263,592
Murphy Oil Corp.	3,193		284,464
Nabors Industries Ltd.¹	5,446		293,376
Noble Corp.	4,836		246,152
Patina Oil & Gas Corp.	2,391		91,814
Patterson-UTI Energy Inc.	6,080		145,738
Plains Exploration & Production Co.¹	2,795		89,943
Pride International Inc.¹	4,208		93,838
Rowan Companies Inc.	3,876		102,830
XTO Energy Inc.	12,706		383,340

			2,688,296

OIL & GAS SERVICES – 4.11%
BJ Services Co.	5,890		287,138
Cooper Cameron Corp.¹	1,995		109,605
FMC Technologies Inc.¹	2,319		70,335
Grant Prideco Inc.¹	4,455		98,678
National Oilwell Varco Inc.¹	6,130		243,606
Smith International Inc.	3,834		223,062
Weatherford International Ltd.¹	4,886		254,805

			1,287,229

PHARMACEUTICALS – 5.83%
American Pharmaceutical Partners Inc.^1,2	1,463		76,252
Amylin Pharmaceuticals Inc.^1,2	3,452		58,684
Barr Pharmaceuticals Inc.¹	3,285		170,360
Cephalon Inc.^1,2	2,057		90,302
Endo Pharmaceuticals Holdings Inc.¹	2,476		49,149
Eon Labs Inc.¹	923		27,579
Express Scripts Inc.¹	2,399		215,046
ImClone Systems Inc.¹	2,405		76,599
IVAX Corp.¹	7,666		144,887
Kinetic Concepts Inc.¹	1,855		113,990
Medicis Pharmaceutical Corp. Class A	2,032		57,099
MGI Pharma Inc.¹	2,563		56,514
Mylan Laboratories Inc.	8,814		145,431
NBTY Inc.¹	2,200		46,904
Neurocrine Biosciences Inc.¹	1,321		46,182
OSI Pharmaceuticals Inc.^1,2	1,679		79,475
Sepracor Inc.¹	3,845		230,392
Valeant Pharmaceuticals International	3,329		69,077
VCA Antech Inc.¹	3,002		69,887

			1,823,809

REAL ESTATE – 0.78%
CB Richard Ellis Group Inc. Class A¹	1,891		65,712
St. Joe Co. (The)	2,565		178,498

			244,210


44		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR MID GROWTH INDEX FUND

April 30, 2005


*Security*	*Shares*	*Value*
REAL ESTATE INVESTMENT TRUSTS – 0.36%
Mills Corp.	1,959	$	111,937

			111,937

RETAIL – 7.46%
Abercrombie & Fitch Co. Class A	3,186		171,885
Advance Auto Parts Inc.¹	2,686		143,298
American Eagle Outfitters Inc.	4,370		114,581
Applebee’s International Inc.	2,990		74,092
CarMax Inc.¹	3,775		102,982
Cheesecake Factory (The)¹	2,813		86,331
Chico’s FAS Inc.¹	6,530		167,364
Claire’s Stores Inc.	2,970		64,805
Dollar General Corp.	11,141		226,719
Dollar Tree Stores Inc.¹	4,183		102,442
Michaels Stores Inc.	4,959		164,639
MSC Industrial Direct Co. Inc. Class A	1,747		46,942
O’Reilly Automotive Inc.^1,2	2,000		102,640
Pacific Sunwear of California Inc.¹	2,783		62,924
PETCO Animal Supplies Inc.¹	1,496		46,825
PETsMART Inc.	5,245		139,779
Ross Stores Inc.	5,527		147,681
Tiffany & Co.	5,342		161,061
Urban Outfitters Inc.¹	2,088		92,498
Williams-Sonoma Inc.¹	3,405		114,033

			2,333,521

SAVINGS & LOANS – 0.26%
Hudson City Bancorp Inc.	2,456		81,466

			81,466

SEMICONDUCTORS – 6.77%
Altera Corp.¹	13,604		282,011
Cree Inc.^1,2	2,683		64,902
International Rectifier Corp.¹	2,416		102,777
Intersil Corp. Class A	5,489		95,838
KLA-Tencor Corp.	7,195		280,749
Lam Research Corp.¹	4,865		124,787
Marvell Technology Group Ltd.¹	7,168		239,985
Microchip Technology Inc.	7,529		214,426
National Semiconductor Corp.	13,128		250,482
Novellus Systems Inc.	5,183		121,438
NVIDIA Corp.¹	5,676		124,531
PMC-Sierra Inc.¹	6,462		52,084
QLogic Corp.¹	3,440		114,346
Rambus Inc.¹	3,484		49,543

			2,117,899

SOFTWARE – 8.22%
Activision Inc.¹	6,697		96,839
Acxiom Corp.	3,151		59,869
Autodesk Inc.	8,462		269,345
BEA Systems Inc.¹	14,006		96,641
Certegy Inc.	2,301		83,825
Citrix Systems Inc.¹	6,139		138,128
Dun & Bradstreet Corp.¹	2,571		160,533
Fair Isaac Corp.	2,443		80,326
Fiserv Inc.¹	7,148		302,360
Global Payments Inc.²	1,374		88,980
IMS Health Inc.	8,554		205,125
Intuit Inc.¹	6,430		259,129
Mercury Interactive Corp.¹	3,065		126,676
NAVTEQ Corp.¹	2,083		75,863
Novell Inc.¹	13,669		80,784
Pixar Inc.¹	1,794		82,058
Red Hat Inc.^1,2	6,367		68,445
Salesforce.com Inc.¹	2,208		31,972
SEI Investments Co.	2,511		82,386
Siebel Systems Inc.¹	16,554		148,986
Total System Services Inc.	1,367		33,601

			2,571,871

TELECOMMUNICATIONS – 5.15%
ADTRAN Inc.	1,562		32,380
Amdocs Ltd.¹	6,846		182,857
American Tower Corp. Class A¹	8,145		140,338
Andrew Corp.¹	5,420		66,503
Comverse Technology Inc.¹	6,689		152,442
Crown Castle International Corp.¹	8,180		131,943
Harris Corp.	4,864		137,165
JDS Uniphase Corp.^1,2	49,808		73,716
Level 3 Communications Inc.^1,2	22,494		40,714
Nextel Partners Inc. Class A¹	1,436		33,775
NII Holdings Inc. Class B¹	2,126		106,449
Plantronics Inc.	1,739		54,761
Polycom Inc.¹	3,609		55,073
SpectraSite Inc.¹	1,654		92,839


SCHEDULES OF INVESTMENTS		45

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR MID GROWTH INDEX FUND

April 30, 2005


*Security*	Shares or Principal		*Value*
Telephone & Data Systems Inc.		1,838	$	141,875
United States Cellular Corp.¹		559		25,826
UTStarcom Inc.^1,2		3,611		34,341
Western Wireless Corp. Class A¹		2,777		108,831

				1,611,828

TEXTILES – 0.62%
Cintas Corp.		5,022		193,799

				193,799

TOYS, GAMES & HOBBIES – 0.19%
Marvel Enterprises Inc.^1,2		2,991		58,624

				58,624

TRANSPORTATION – 1.66%
CH Robinson Worldwide Inc.		3,118		160,889
Expeditors International Washington Inc.		3,897		191,382
Hunt (J.B.) Transport Services Inc.		2,348		91,783
Landstar System Inc.¹		2,218		67,982
SIRVA Inc. ¹		909		6,345

				518,381

TOTAL COMMON STOCKS (Cost: $32,184,310)				31,275,761

SHORT-TERM INVESTMENTS – 7.48%

COMMERCIAL PAPER³ – 1.99%
Alpine Securitization Corp.
2.80%, 05/04/05	$	30,000		29,971
Amstel Funding Corp.
2.95%, 08/19/05		4,360		4,321
Amsterdam Funding Corp.
2.80% - 3.02%, 05/04/05 - 05/27/05		11,853		11,841
ANZ National Bank Ltd.
2.94%, 08/15/05		5,245		5,200
Blue Ridge Asset Funding Corp.
3.02%, 06/02/05		15,734		15,693
Bryant Park Funding LLC
2.75%, 05/03/05		2,098		2,098
Cancara Asset Securitisation LLC
2.80% - 2.97%, 05/03/05 - 05/23/05		34,788		34,780

*Security*	*Principal*		*Value*
Cantabric Finance LLC
3.04% - 3.12%, 06/28/05 - 07/25/05	$	13,112	$	13,027
Chariot Funding LLC
2.99%, 05/20/05		2,494		2,490
Charta LLC
2.99%, 06/16/05 - 06/21/05		22,028		21,940
Chesham Finance LLC
2.89% - 3.01%, 05/10/05 - 06/21/05		37,237		37,192
Corporate Asset Funding
2.75% - 2.99%, 05/05/05 - 06/16/05		19,405		19,359
CRC Funding LLC
2.95% - 3.00%, 05/02/05 - 06/29/05		18,356		18,328
DEPFA Bank PLC
2.28%, 05/03/05		5,245		5,244
Deutsche Bank Financial LLC
2.80%, 05/03/05		31,468		31,466
Edison Asset Securitization
2.26% - 3.12%, 05/03/05 - 09/06/05		35,664		35,574
Fairway Finance LLC
3.15%, 09/15/05		9,331		9,220
Falcon Asset Securitization Corp.
2.79% - 3.02%, 05/03/05 - 06/01/05		21,015		20,990
Ford Credit Auto Receivables
2.74%, 05/04/05		5,140		5,139
Fortis Funding LLC
2.35%, 05/09/05		14,685		14,678
Gemini Securitization Corp.
3.02%, 06/27/05		1,049		1,044
General Electric Capital Corp.
2.74%, 07/07/05		5,245		5,218
Georgetown Funding Co. LLC
2.81% - 3.05%, 05/03/05 - 06/16/05		23,077		23,046
Grampian Funding LLC
3.00% - 3.13%, 08/22/05 - 09/09/05		31,468		31,163


46		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR MID GROWTH INDEX FUND

April 30, 2005


*Security*	*Principal*		*Value*
Jupiter Securization Corp.
2.99% - 3.02%, 05/19/05 - 06/03/05	$	42,344	$	42,259
Kitty Hawk Funding Corp.
2.88%, 05/04/05		7,921		7,920
Moat Funding LLC
2.74%, 05/02/05		7,343		7,343
Mortgage Interest Networking Trust
2.82% - 3.05%, 05/02/05 - 05/24/05		13,636		13,633
Nordea North America Inc.
2.74%, 07/11/05		5,245		5,217
Park Granada LLC
3.04%, 05/25/05 - 05/31/05		6,818		6,805
Ranger Funding Co. LLC
2.89% - 3.02%, 05/04/05 - 05/27/05		16,956		16,939
Santander Central Hispano
2.75%, 07/08/05		13,112		13,045
Scaldis Capital LLC
2.75% - 2.99%, 05/16/05 - 07/08/05		30,947		30,896
Societe Generale
2.75% - 2.79%, 05/02/05 - 05/03/05		36,188		36,187
Sydney Capital Corp.
2.81%, 05/04/05		3,462		3,461
Tulip Funding Corp.
2.80% - 3.02%, 05/03/05 - 07/01/05		28,846		28,833
UBS Finance (Delaware)
2.79%, 05/04/05		8,392		8,390
Windmill Funding Corp.
2.80%, 05/04/05		3,241		3,241

				623,191

FLOATING RATE NOTES³ – 2.70%
Allstate Life Global Funding II
2.91%, 03/08/06⁴		4,825		4,825
American Express Centurion Bank
2.98% - 3.04%, 10/26/05 - 01/24/06		36,713		36,719
Bank of Nova Scotia
2.80% - 2.94%, 09/26/05 - 01/03/06		6,818		6,817
Beta Finance Inc.
2.81% - 3.16%, 05/04/05 - 04/25/06⁴		40,279		40,281
BMW US Capital LLC
2.92%, 04/18/06⁴		10,489		10,490
Canadian Imperial Bank of Commerce
2.86% - 3.00%, 09/13/05 - 12/14/05		35,664		35,659
CC USA Inc.
2.81% - 3.12%, 05/04/05 - 03/23/06⁴		27,272		27,272
Commodore CDO Ltd.
3.08%, 12/12/05		2,622		2,622
Den Danske Bank NY
2.85% - 2.96%, 08/12/05 - 10/17/05		31,468		31,466
DEPFA Bank PLC
2.99%, 03/15/06		10,489		10,490
Dorada Finance Inc.
3.00% - 3.12%, 07/29/05 - 03/27/06⁴		22,762		22,764
Fairway Finance LLC
2.94%, 06/20/05		5,245		5,245
Fifth Third Bancorp
2.98%, 02/23/06⁴		20,979		20,979
Five Finance Inc.
3.01%, 02/27/06⁴		5,245		5,245
General Electric Capital Corp.
3.01%, 05/09/06		4,720		4,726
General Electric Commercial Equipment Financing LLC
2.95%, 11/20/05		3,018		3,018
Greenwich Capital Holdings Inc.
2.83%, 09/02/05		6,818		6,818
Hartford Life Global Funding Trust
2.94%, 04/15/06		10,489		10,490
HBOS Treasury Services PLC
2.87% - 3.08%, 01/10/06 - 04/24/06		31,468		31,470


SCHEDULES OF INVESTMENTS		47

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR MID GROWTH INDEX FUND

April 30, 2005


*Security*	*Principal*		*Value*
K2 USA LLC
2.87% - 3.11%, 06/10/05 - 02/15/06⁴	$	47,202	$	47,203
Leafs LLC
2.99%, 01/20/06 - 02/21/06⁴		11,014		11,014
Links Finance LLC
2.92% - 3.15%, 11/16/05 - 02/06/06⁴		22,028		22,036
Lothian Mortgages PLC
3.01%, 01/24/06⁴		15,734		15,735
Marshall & Ilsley Corp.
3.09%, 02/20/06		10,489		10,500
MetLife Global Funding I
2.86%, 05/05/06⁴		15,734		15,735
National City Bank (Ohio)
2.84% - 2.95%, 06/10/05 - 08/09/05		26,224		26,223
Nationwide Building Society
2.89% - 3.12%, 01/13/06 - 04/28/06⁴		38,811		38,819
Norddeutsche Landesbank
3.11%, 07/27/05		10,489		10,489
Northern Rock PLC
2.88% - 2.99%, 10/25/05 - 02/03/06⁴		31,468		31,469
Permanent Financing PLC
2.87% - 2.89%, 06/10/05 - 03/10/06		37,237		37,237
Royal Bank of Scotland
2.79% - 2.91%, 06/20/05 - 04/05/06		14,239		14,235
Sedna Finance Inc.
2.92%, 01/10/06 - 01/17/06⁴		5,769		5,769
Sigma Finance Inc.
2.82% - 3.16%, 08/17/05 - 01/09/06⁴		53,496		53,498
Societe Generale
2.99%, 03/30/06		8,916		8,913
SunTrust Bank
3.17%, 04/28/06		15,734		15,735

*Security*	Shares or Principal		*Value*
Tango Finance Corp.
2.74% - 2.99%, 05/17/05 - 09/15/05⁴	$	28,426	$	28,425
Wachovia Asset Securitization Inc.
3.00% - 3.01%, 05/25/05		28,572		28,573
Wells Fargo & Co.
2.92%, 05/15/06⁴		5,245		5,245
WhistleJacket Capital LLC
2.86% - 2.97%, 06/15/05 - 01/17/06⁴		36,713		36,710
White Pine Finance LLC
2.80% - 3.09%, 05/20/05 - 01/13/06⁴		45,000		44,997
Windmill Funding Corp.
2.78%, 05/03/05		7,343		7,342
Winston Funding Ltd.
3.22%, 07/23/05⁴		7,489		7,489
World Savings Bank
2.86%, 09/09/05		3,671		3,671

				844,458

MONEY MARKET FUNDS – 0.19%
Barclays Global Investors Funds Government Money Market Fund, Institutional Shares^3,5		41,958		41,958
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares⁵		13,815		13,815
BlackRock Temp Cash Money Market Fund³		1,519		1,519
Short-Term Investment Co. - Prime Money Market Portfolio, Institutional Shares³		4,250		4,250

				61,542

REPURCHASE AGREEMENTS³ – 1.53%
Bank of America N.A. Repurchase Agreement, dated 4/29/05, due 5/2/05, with a maturity value of $262,300 and an effective yield of 2.97%.⁶	$	262,235		262,235


48		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR MID GROWTH INDEX FUND

April 30, 2005


*Security*	*Principal*		*Value*
Goldman Sachs & Co. Repurchase Agreements, dated 4/29/05, due 5/2/05, with a total maturity value of $127,548 and effective yields of 2.96% - 3.00%.⁶	$	127,516	$	127,516
Merrill Lynch Government Securities Inc. Repurchase Agreements, dated 4/29/05, due 5/2/05, with a total maturity value of $89,061 and effective yields of 2.96% - 3.00%.⁶		89,039		89,039

				478,790

TIME DEPOSITS³ – 1.00%
American Express Centurion Bank
3.00%, 05/25/05		26,224		26,224
Banco Bilbao Vizcaya Argentaria SA
3.03% - 3.18%, 06/27/05 - 09/14/05		15,210		15,210
BNP Paribas (New York)
2.78% - 3.03%, 07/11/05 - 08/23/05		14,685		14,686
Credit Suisse First Boston
2.75% - 2.81%, 05/03/05		13,636		13,637
Dexia Credit Local SA
2.81% - 3.01%, 05/04/05 - 06/21/05		20,454		20,455
First Tennessee Bank
3.00% - 3.04%, 06/14/05 - 06/27/05		18,356		18,357
HBOS Treasury Services PLC
3.39%, 12/14/05		6,294		6,294
Natexis Banques
2.98%, 08/18/05		10,489		10,490
Norddeutsche Landesbank
2.11%, 06/07/05		10,489		10,489
Societe Generale
2.81%, 05/03/05		7,343		7,343
SunTrust Bank
2.68%, 05/03/05		10,489		10,489
Svenska Handelsbanken AB
3.00%, 06/20/05		5,245		5,245
Toronto-Dominion Bank
1.77% - 3.18%, 05/10/05 - 11/09/05		31,993		31,994
UBS AG
2.67% - 3.40%, 11/09/05 - 12/15/05		8,392		8,392
Washington Mutual Bank
2.81% - 3.15%, 05/02/05 - 07/28/05		67,657		67,658
Wells Fargo Bank N.A.
3.04%, 06/29/05		31,468		31,468
World Savings Bank
2.75%, 05/03/05		14,685		14,685

				313,116

U.S. GOVERNMENT AGENCY NOTES³ – 0.07%
Federal Home Loan Mortgage Corp.
2.06%, 05/31/05		5,229		5,221
Federal National Mortgage Association
2.33%, 07/22/05		15,734		15,652

				20,873

TOTAL SHORT-TERM INVESTMENTS (Cost: $2,341,970)				2,341,970

TOTAL INVESTMENTS IN SECURITIES – 107.44% (Cost: $34,526,280)				33,617,731
Other Assets, Less Liabilities – (7.44%)				(2,328,870	)

NET ASSETS – 100.00%			$	31,288,861

¹	Non-income earning security.

²	All or a portion of this security represents a security on loan. See Note 5.

³	All or a portion of this security (these securities) represent(s) an investment of securities lending collateral. See Note 5.

⁴	All or a portion of this security is 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	The Fund’s investment adviser is an affiliate of the issuer. See Note 2.

⁶	Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 3.12% to 7.13% and maturity dates ranging from 5/25/05 to 8/1/42.

See notes to financial statements.


SCHEDULES OF INVESTMENTS		49

Schedule of Investments

iSHARES^® MORNINGSTAR MID VALUE INDEX FUND

April 30, 2005


*Security*	*Shares*	*Value*
COMMON STOCKS – 99.58%

AGRICULTURE – 2.29%
Bunge Ltd.	4,102	$	232,994
Reynolds American Inc.¹	3,202		249,660
UST Inc.	6,146		281,487

			764,141

APPAREL – 0.98%
Jones Apparel Group Inc.	4,663		141,988
VF Corp.	3,260		184,483

			326,471

AUTO MANUFACTURERS – 0.20%
Navistar International Corp.²	2,282		67,387

			67,387

AUTO PARTS & EQUIPMENT – 0.78%
BorgWarner Inc.	2,060		94,183
Dana Corp.	5,511		62,936
Lear Corp.	2,584		87,572
TRW Automotive Holdings Corp.^1,2	882		15,708

			260,399

BANKS – 8.07%
AmSouth Bancorp	13,156		346,266
Associated Bancorp	4,522		139,820
Assurant Inc.	4,381		144,967
BancorpSouth Inc.	2,659		56,291
Colonial BancGroup Inc. (The)	5,031		110,984
Commerce Bancshares Inc.	2,566		123,656
Compass Bancshares Inc.	4,583		197,161
First Horizon National Corp.	4,611		191,495
FirstMerit Corp.	2,669		65,471
Fulton Financial Corp.	4,773		99,517
Hibernia Corp. Class A	5,802		181,196
Hudson United Bancorp	1,659		56,837
Huntington Bancshares Inc.	8,159		191,818
Mercantile Bankshares Corp.	2,967		150,753
Sky Financial Group Inc.¹	4,002		104,452
TD Banknorth Inc.²	3,456		106,445
Trustmark Corp.	1,881		51,765
UnionBanCal Corp.	2,170		133,585
Valley National Bancorp¹	3,640		90,236
Whitney Holding Corp.	1,508		68,267
Wilmington Trust Corp.¹	2,449		86,572

			2,697,554

BEVERAGES – 0.67%
Molson Coors Brewing Co. Class B	2,628		162,279
PepsiAmericas Inc.	2,539		62,688

			224,967

BUILDING MATERIALS – 0.48%
Lafarge North America Inc.	1,107		61,450
Martin Marietta Materials Inc.	1,816		99,862

			161,312

CHEMICALS – 3.12%
Ashland Inc.	2,629		176,774
Eastman Chemical Co.	2,911		157,194
Engelhard Corp.	4,671		143,073
Lubrizol Corp.	2,412		93,513
Lyondell Chemical Co.	7,627		191,361
RPM International Inc.	4,280		73,830
Sherwin-Williams Co. (The)	4,472		199,317
Valhi Inc.	437		7,870

			1,042,932

COMMERCIAL SERVICES – 3.22%
Convergys Corp.²	5,226		67,729
Deluxe Corp.	1,853		73,990
Donnelley (R.R.) & Sons Co.	8,160		268,546
McKesson Corp.	10,232		378,584
Rent-A-Center Inc.²	2,531		60,845
Service Corp. International	12,466		87,761
ServiceMaster Co. (The)¹	10,914		140,027

			1,077,482

COMPUTERS – 0.71%
Reynolds & Reynolds Co. (The) Class A	2,386		62,919
Unisys Corp.²	12,243		79,457
Western Digital Corp.²	7,570		96,063

			238,439

DISTRIBUTION & WHOLESALE – 0.84%
Genuine Parts Co.	6,516		279,536

			279,536

DIVERSIFIED FINANCIAL SERVICES – 2.23%
CIT Group Inc.	7,843		315,916
Edwards (A.G.) Inc.	2,978		118,256


50		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR MID VALUE INDEX FUND

April 30, 2005


*Security*	*Shares*	*Value*
Providian Financial Corp.²	10,931	$	182,220
Raymond James Financial Inc.	2,200		59,334
Student Loan Corp.	148		28,675
Westcorp Inc.	886		39,640

			744,041

ELECTRIC – 13.91%
AES Corp. (The)²	24,109		387,673
Allegheny Energy Inc.^1,2	5,164		126,208
Alliant Energy Corp.	4,369		115,079
Ameren Corp.¹	7,222		373,377
CenterPoint Energy Inc.	10,211		120,898
Cinergy Corp.	6,503		257,519
Constellation Energy Group Inc.	6,526		343,007
DPL Inc.	4,515		114,862
DTE Energy Co.	6,466		297,113
Energy East Corp.	5,506		143,266
Great Plains Energy Inc.	2,740		83,789
Hawaiian Electric Industries Inc.¹	2,967		75,065
MDU Resources Group Inc.	4,090		110,553
NiSource Inc.	10,090		234,492
Northeast Utilities	4,732		86,643
NSTAR	1,996		108,063
OGE Energy Corp.	3,233		89,231
Pepco Holdings Inc.	6,966		150,953
Pinnacle West Capital Corp.	3,426		143,549
PPL Corp.	7,021		380,959
Puget Energy Inc.	3,671		78,706
SCANA Corp.	3,775		146,621
TECO Energy Inc.	7,507		124,691
Westar Energy Inc.	3,157		72,295
Wisconsin Energy Corp.	4,397		155,038
WPS Resources Corp.¹	1,376		72,556
Xcel Energy Inc.	14,896		255,913

			4,648,119

ELECTRONICS – 0.57%
Arrow Electronics Inc.²	4,335		105,514
Avnet Inc.²	4,447		84,004

			189,518

ENGINEERING & CONSTRUCTION – 0.48%
Fluor Corp.¹	3,115		160,609

			160,609

FOOD – 3.59%
Albertson’s Inc.¹	11,869		234,888
Dean Foods Co.²	5,566		191,248
Del Monte Foods Co.²	7,337		76,525
Pilgrim’s Pride Corp.	951		34,322
Safeway Inc.²	16,607		353,563
SUPERVALU Inc.	5,079		160,293
Tyson Foods Inc. Class A	8,860		149,645

			1,200,484

FOREST PRODUCTS & PAPER – 1.57%
Georgia-Pacific Corp.	8,477		290,507
Louisiana-Pacific Corp.	3,782		93,037
Temple-Inland Inc.	4,167		140,636

			524,180

GAS – 2.93%
AGL Resources Inc.²	2,752		95,219
Energen Corp.	1,210		74,959
KeySpan Corp.	5,971		226,480
ONEOK Inc.	3,625		104,617
Sempra Energy	7,583		306,202
UGI Corp.	1,873		94,081
Vectren Corp.	2,803		75,709

			977,267

HAND & MACHINE TOOLS – 0.19%
Snap-On Inc.	1,933		64,118

			64,118

HEALTH CARE - PRODUCTS – 0.36%
Hillenbrand Industries Inc.	2,191		120,987

			120,987

HEALTH CARE - SERVICES – 2.24%
Health Net Inc.^1,2	4,188		142,518
Humana Inc.²	5,951		206,202
PacifiCare Health Systems Inc.²	3,212		191,949
Tenet Healthcare Corp.²	17,348		207,656

			748,325

HOME BUILDERS – 0.47%
KB Home	2,770		157,890

			157,890


SCHEDULES OF INVESTMENTS		51

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR MID VALUE INDEX FUND

April 30, 2005


*Security*	*Shares*	*Value*
HOME FURNISHINGS – 0.46%
Whirlpool Corp.	2,480	$	153,909

			153,909

HOUSEHOLD PRODUCTS & WARES – 0.16%
American Greetings Corp. Class A	2,348		53,182

			53,182

HOUSEWARES – 0.67%
Newell Rubbermaid Inc.¹	10,251		222,754

			222,754

INSURANCE – 10.43%
American Financial Group Inc.	1,410		43,837
AON Corp.	9,717		202,599
CIGNA Corp.¹	5,108		469,834
Cincinnati Financial Corp.	6,140		247,074
CNA Financial Corp.^1,2	1,228		33,709
Conseco Inc.²	5,670		109,091
Fidelity National Financial Inc.	5,739		184,279
First American Corp.	2,952		105,682
IPC Holdings Ltd.¹	1,349		50,763
Jefferson-Pilot Corp.	5,086		255,368
Lincoln National Corp.	6,549		294,509
MBIA Inc.	5,329		279,133
Mercury General Corp.	971		51,327
Nationwide Financial Services Inc.	2,083		73,801
Old Republic International Corp.	6,417		151,441
PartnerRe Ltd.	2,018		117,609
Protective Life Corp.	2,417		92,426
Radian Group Inc.	3,466		153,994
Reinsurance Group of America Inc.	1,221		54,603
SAFECO Corp.	4,729		249,076
StanCorp Financial Group Inc.	1,048		80,193
UNUMProvident Corp.¹	11,069		185,074

			3,485,422

IRON & STEEL – 1.36%
Nucor Corp.	5,358		273,794
United States Steel Corp.¹	4,240		181,302

			455,096

MACHINERY – 0.30%
Cummins Inc.¹	1,494		101,592

			101,592

MANUFACTURING – 2.06%
Carlisle Companies Inc.	1,150		82,593
Cooper Industries Ltd.	3,420		217,717
Crane Co.	1,892		48,435
Eastman Kodak Co.¹	10,657		266,425
Teleflex Inc.	1,341		71,703

			686,873

MEDIA – 0.56%
Knight Ridder Inc.	2,876		186,077

			186,077

MINING – 1.28%
Owens-Illinois Inc.²	5,249		128,705
Phelps Dodge Corp.	3,493		299,874

			428,579

OIL & GAS – 4.55%
Amerada Hess Corp.	3,071		287,599
Forest Oil Corp.²	1,882		72,513
Kerr-McGee Corp.	4,649		360,762
Noble Energy Inc.	2,171		139,205
Pogo Producing Co.	2,147		96,636
Premcor Inc.	2,924		193,423
Sunoco Inc.	2,803		278,226
Tesoro Corp.²	2,440		92,574

			1,520,938

PACKAGING & CONTAINERS – 0.90%
Bemis Co. Inc.	4,024		110,901
Crown Holdings Inc.²	6,100		91,805
Sonoco Products Co.	3,617		97,985

			300,691

PHARMACEUTICALS – 0.59%
Hospira Inc.²	5,828		195,529

			195,529

PIPELINES – 1.57%
Dynegy Inc. Class A²	9,916		33,219
El Paso Corp.	22,996		229,730
National Fuel Gas Co.¹	2,883		78,504
Questar Corp.	3,137		183,201

			524,654

REAL ESTATE INVESTMENT TRUSTS – 12.49%
Annaly Mortgage Management Inc.¹	4,442		84,931


52		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR MID VALUE INDEX FUND

April 30, 2005


*Security*	*Shares*		*Value*
Apartment Investment & Management Co. Class A		3,555	$	135,517
Archstone-Smith Trust		7,442		267,689
Arden Realty Group Inc.		2,418		86,298
AvalonBay Communities Inc.¹		2,686		193,392
Boston Properties Inc.¹		4,033		268,074
BRE Properties Inc. Class A¹		1,849		68,820
Camden Property Trust¹		1,909		97,359
CBL & Associates Properties Inc.		1,078		83,405
Duke Realty Corp.		5,316		162,670
Equity Residential		10,420		357,927
Health Care Property Investors Inc.		4,988		127,892
Health Care REIT Inc.		1,907		63,885
Hospitality Properties Trust		2,353		98,308
HRPT Properties Trust		7,536		88,548
iStar Financial Inc.		4,153		165,456
Kimco Realty Corp.		3,530		195,527
Liberty Property Trust		3,183		126,779
Macerich Co. (The)		2,222		133,987
Mack-Cali Realty Corp.		2,281		100,341
New Plan Excel Realty Trust Inc.¹		3,854		99,472
Plum Creek Timber Co. Inc.		6,831		235,943
Rayonier Inc.¹		1,832		92,076
Realty Income Corp.¹		2,927		70,570
Reckson Associates Realty Corp.		3,036		97,911
Shurgard Storage Centers Inc. Class A		1,697		70,986
SL Green Realty Corp.		1,499		91,439
Thornburg Mortgage Inc.¹		3,517		105,369
Trizec Properties Inc.		3,366		67,286
Vornado Realty Trust		4,381		334,927

				4,172,784

RETAIL – 5.55%
AutoNation Inc.²		7,375		134,741
Borders Group Inc.		2,862		69,232
CBRL Group Inc.		1,798		69,277
Federated Department Stores Inc.		6,417		368,978
May Department Stores Co. (The)		10,829		379,881
Neiman-Marcus Group Inc. Class A		1,106		108,742
Neiman-Marcus Group Inc. Class B¹		500		48,600
Office Depot Inc.²		11,633		227,774
OfficeMax Inc.		3,313		107,606

*Security*	Shares or Principal		*Value*
Rite Aid Corp.²		16,438	$	59,670
Saks Inc.²		4,642		79,100
Toys R Us Inc.²		7,980		202,293

				1,855,894

SAVINGS & LOANS – 1.96%
Astoria Financial Corp.		3,850		102,064
Independence Community Bank Corp.		2,956		105,470
Sovereign Bancorp Inc.		13,943		286,808
Washington Federal Inc.		3,196		71,239
Webster Financial Corp.		1,977		89,855

				655,436

SEMICONDUCTORS – 0.20%
MEMC Electronic Materials Inc.²		5,627		66,005

				66,005

TELECOMMUNICATIONS – 2.22%
CenturyTel Inc.		4,745		145,624
Citizens Communications Co.		12,547		159,974
MCI Inc.		9,451		250,735
Qwest Communications International Inc.²		54,456		186,240

				742,573

TOYS, GAMES & HOBBIES – 1.17%
Hasbro Inc.		5,957		112,706
Mattel Inc.		15,402		278,006

				390,712

TRANSPORTATION – 1.20%
CSX Corp.		7,989		320,599
Yellow Roadway Corp.²		1,666		81,634

				402,233

TOTAL COMMON STOCKS (Cost: $32,915,393)				33,277,091

SHORT-TERM INVESTMENTS – 8.27%

COMMERCIAL PAPER³ – 2.18%
Alpine Securitization Corp.
2.80%, 05/04/05	$	35,026		35,020
Amstel Funding Corp.
2.95%, 08/19/05		5,090		5,045


SCHEDULES OF INVESTMENTS		53

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR MID VALUE INDEX FUND

April 30, 2005


*Security*	*Principal*		*Value*
Amsterdam Funding Corp.
2.80% - 3.02%, 05/04/05 - 05/27/05	$	13,839	$	13,825
ANZ National Bank Ltd.
2.94%, 08/15/05		6,123		6,071
Blue Ridge Asset Funding Corp.
3.02%, 06/02/05		18,370		18,323
Bryant Park Funding LLC
2.75%, 05/03/05		2,449		2,449
Cancara Asset Securitisation LLC
2.80% - 2.97%, 05/03/05 - 05/23/05		40,616		40,606
Cantabric Finance LLC
3.04% - 3.12%, 06/28/05 - 07/25/05		15,308		15,208
Chariot Funding LLC
2.99%, 05/20/05		2,912		2,907
Charta LLC
2.99%, 06/16/05 - 06/21/05		25,718		25,617
Chesham Finance LLC
2.89% - 3.01%, 05/10/05 - 06/21/05		43,476		43,423
Corporate Asset Funding
2.75% - 2.99%, 05/05/05 - 06/16/05		22,657		22,602
CRC Funding LLC
2.95% - 3.00%, 05/02/05 - 06/29/05		21,432		21,398
DEPFA Bank PLC
2.28%, 05/03/05		6,123		6,124
Deutsche Bank Financial LLC
2.80%, 05/03/05		36,740		36,737
Edison Asset Securitization
2.26% - 3.12%, 05/03/05 - 09/06/05		41,639		41,535
Fairway Finance LLC
3.15%, 09/15/05		10,894		10,764
Falcon Asset Securitization Corp.
2.79% - 3.02%, 05/03/05 - 06/01/05		24,536		24,507
Ford Credit Auto Receivables
2.74%, 05/04/05		6,001		6,000
Fortis Funding LLC
2.35%, 05/09/05		17,145		17,138
Gemini Securitization Corp.
3.02%, 06/27/05		1,225		1,219
General Electric Capital Corp.
2.74%, 07/07/05		6,123		6,093
Georgetown Funding Co. LLC
2.81% - 3.05%, 05/03/05 - 06/16/05		26,943		26,907
Grampian Funding LLC
3.00% - 3.13%, 08/22/05 - 09/09/05		36,740		36,385
Jupiter Securization Corp.
2.99% - 3.02%, 05/19/05 - 06/03/05		49,438		49,339
Kitty Hawk Funding Corp.
2.88%, 05/04/05		9,248		9,247
Moat Funding LLC
2.74%, 05/02/05		8,573		8,573
Mortgage Interest Networking Trust
2.82% - 3.05%, 05/02/05 - 05/24/05		15,921		15,918
Nordea North America Inc.
2.74%, 07/11/05		6,123		6,091
Park Granada LLC
3.04%, 05/25/05 - 05/31/05		7,960		7,944
Ranger Funding Co. LLC
2.89% - 3.02%, 05/04/05 - 05/27/05		19,797		19,777
Santander Central Hispano
2.75%, 07/08/05		15,308		15,230
Scaldis Capital LLC
2.75% - 2.99%, 05/16/05 - 07/08/05		36,131		36,071
Societe Generale
2.75% - 2.79%, 05/02/05 - 05/03/05		42,251		42,249
Sydney Capital Corp.
2.81%, 05/04/05		4,041		4,041


54		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR MID VALUE INDEX FUND

April 30, 2005


*Security*	*Principal*		*Value*
Tulip Funding Corp.
2.80% - 3.02%, 05/03/05 - 07/01/05	$	33,679	$	33,665
UBS Finance (Delaware)
2.79%, 05/04/05		9,797		9,796
Windmill Funding Corp.
2.80%, 05/04/05		3,784		3,784

				727,628

FLOATING RATE NOTES³ – 2.95%
Allstate Life Global Funding II
2.91%, 03/08/06⁴		5,634		5,634
American Express Centurion Bank
2.98% - 3.04%, 10/26/05 - 01/24/06		42,864		42,870
Bank of Nova Scotia
2.80% - 2.94%, 09/26/05 - 01/03/06		7,960		7,959
Beta Finance Inc.
2.81% - 3.16%, 05/04/05 - 04/25/06⁴		47,028		47,030
BMW US Capital LLC
2.92%, 04/18/06⁴		12,247		12,247
Canadian Imperial Bank of Commerce
2.86% - 3.00%, 09/13/05 - 12/14/05		41,639		41,634
CC USA Inc.
2.81% - 3.12%, 05/04/05 - 03/23/06⁴		31,842		31,841
Commodore CDO Ltd.
3.08%, 12/12/05		3,062		3,062
Den Danske Bank NY
2.85% - 2.96%, 08/12/05 - 10/17/05		36,740		36,738
DEPFA Bank PLC
2.99%, 03/15/06		12,247		12,247
Dorada Finance Inc.
3.00% - 3.12%, 07/29/05 - 03/27/06⁴		26,576		26,577
Fairway Finance LLC
2.94%, 06/20/05		6,123		6,124
Fifth Third Bancorp
2.98%, 02/23/06⁴		24,494		24,494
Five Finance Inc.
3.01%, 02/27/06⁴		6,123		6,124
General Electric Capital Corp.
3.01%, 05/09/06		5,511		5,518
General Electric Commercial Equipment Financing LLC
2.95%, 11/20/05		3,523		3,524
Greenwich Capital Holdings Inc.
2.83%, 09/02/05		7,960		7,960
Hartford Life Global Funding Trust
2.94%, 04/15/06		12,247		12,247
HBOS Treasury Services PLC
2.87% - 3.08%, 01/10/06 - 04/24/06		36,740		36,741
K2 USA LLC
2.87% - 3.11%, 06/10/05 - 02/15/06⁴		55,111		55,113
Leafs LLC
2.99%, 01/20/06 - 02/21/06⁴		12,859		12,859
Links Finance LLC
2.92% - 3.15%, 11/16/05 - 02/06/06⁴		25,718		25,728
Lothian Mortgages PLC
3.01%, 01/24/06⁴		18,370		18,370
Marshall & Ilsley Corp.
3.09%, 02/20/06		12,247		12,259
MetLife Global Funding I
2.86%, 05/05/06⁴		18,370		18,370
National City Bank (Ohio)
2.84% - 2.95%, 06/10/05 - 08/09/05		30,617		30,616
Nationwide Building Society
2.89% - 3.12%, 01/13/06 - 04/28/06⁴		45,313		45,321
Norddeutsche Landesbank
3.11%, 07/27/05		12,247		12,246
Northern Rock PLC
2.88% - 2.99%, 10/25/05 - 02/03/06⁴		36,740		36,741


SCHEDULES OF INVESTMENTS		55

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR MID VALUE INDEX FUND

April 30, 2005


*Security*	*Principal*		*Value*
Permanent Financing PLC
2.87% - 2.89%, 06/10/05 - 03/10/06	$	43,476	$	43,476
Royal Bank of Scotland
2.79% - 2.91%, 06/20/05 - 04/05/06		16,625		16,620
Sedna Finance Inc.
2.92%, 01/10/06 - 01/17/06⁴		6,736		6,735
Sigma Finance Inc.
2.82% - 3.16%, 08/17/05 - 01/09/06⁴		62,459		62,443
Societe Generale
2.99%, 03/30/06		10,410		10,407
SunTrust Bank
3.17%, 04/28/06		18,370		18,370
Tango Finance Corp.
2.74% - 2.99%, 05/17/05 - 09/15/05⁴		33,189		33,189
Wachovia Asset Securitization Inc.
3.00% - 3.01%, 05/25/05		33,359		33,359
Wells Fargo & Co.
2.92%, 05/15/06⁴		6,123		6,124
WhistleJacket Capital LLC
2.86% - 2.97%, 06/15/05 - 01/17/06⁴		42,864		42,861
White Pine Finance LLC
2.80% - 3.09%, 05/20/05 - 01/13/06⁴		52,539		52,537
Windmill Funding Corp.
2.78%, 05/03/05		8,573		8,572
Winston Funding Ltd.
3.22%, 07/23/05⁴		8,744		8,745
World Savings Bank
2.86%, 09/09/05		4,286		4,286

				985,918

MONEY MARKET FUNDS – 0.30%
Barclays Global Investors Funds Government Money Market Fund, Institutional Shares^3,5		48,987		48,987

*Security*	Shares or Principal		*Value*
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares⁵		44,638	$	44,638
BlackRock Temp Cash Money Market Fund³		1,774		1,774
Short-Term Investment Co. Prime Money Market Portfolio, Institutional Shares³		4,962		4,962

				100,361

REPURCHASE AGREEMENTS³ – 1.67%
Bank of America N.A. Repurchase Agreement, dated 4/29/05, due 5/2/05, with a maturity value of $306,246 and an effective yield of 2.97%.⁶	$	306,170		306,170
Goldman Sachs & Co. Repurchase Agreements, dated 4/29/05, due 5/2/05, with a total maturity value of $148,918 and effective yields of 2.96% - 3.00%.⁶		148,881		148,881
Merrill Lynch Government Securities Inc. Repurchase Agreements, dated 4/29/05, due 5/2/05, with a total maturity value of $103,982 and effective yields of 2.96% - 3.00%.⁶		103,956		103,956

				559,007

TIME DEPOSITS³ – 1.10%
American Express Centurion Bank
3.00%, 05/25/05		30,617		30,617
Banco Bilbao Vizcaya Argentaria SA
3.03% - 3.18%, 06/27/05 - 09/14/05		17,758		17,758
BNP Paribas (New York)
2.78% - 3.03%, 07/11/05 - 08/23/05		17,145		17,146
Credit Suisse First Boston
2.75% - 2.81%, 05/03/05		15,921		15,921
Dexia Credit Local SA
2.81% - 3.01%, 05/04/05 - 06/21/05		23,881		23,881


56		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR MID VALUE INDEX FUND

April 30, 2005


*Security*	*Principal*		*Value*
First Tennessee Bank
3.00% - 3.04%, 06/14/05 - 06/27/05	$	21,432	$	21,432
HBOS Treasury Services PLC
3.39%, 12/14/05		7,348		7,348
Natexis Banques
2.98%, 08/18/05		12,247		12,247
Norddeutsche Landesbank
2.11%, 06/07/05		12,247		12,247
Societe Generale
2.81%, 05/03/05		8,573		8,573
SunTrust Bank
2.68%, 05/03/05		12,247		12,247
Svenska Handelsbanken AB
3.00%, 06/20/05		6,123		6,123
Toronto-Dominion Bank
1.77% - 3.18%, 05/10/05 - 11/09/05		37,353		37,352
UBS AG
2.67% - 3.40%, 11/09/05 - 12/15/05		9,797		9,797
Washington Mutual Bank
2.81% - 3.15%, 05/02/05 - 07/28/05		78,992		78,991
Wells Fargo Bank N.A.
3.04%, 06/29/05		36,740		36,740
World Savings Bank
2.75%, 05/03/05		17,145		17,145

				365,565

U.S. GOVERNMENT AGENCY NOTES³ – 0.07%
Federal Home Loan Mortgage Corp.
2.06%, 05/31/05		6,105		6,095
Federal National Mortgage Association
2.33%, 07/22/05		18,370		18,274

				24,369

TOTAL SHORT-TERM INVESTMENTS (Cost: $2,762,848)				2,762,848

TOTAL INVESTMENTS IN SECURITIES – 107.85% (Cost: $35,678,241)				36,039,939
Other Assets, Less Liabilities – (7.85%)				(2,623,178	)

NET ASSETS – 100.00%			$	33,416,761

¹	All or a portion of this security represents a security on loan. See Note 5.

²	Non-income earning security.

³	All or a portion of this security (these securities) represent(s) an investment of securities lending collateral. See Note 5.

⁴	All or a portion of this security is 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	The Fund’s investment adviser is an affiliate of the issuer. See Note 2.

⁶	Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 3.12% to 7.13% and maturity dates ranging from 5/25/05 to 8/1/42.

See notes to financial statements.


SCHEDULES OF INVESTMENTS		57

Schedule of Investments

iSHARES^® MORNINGSTAR SMALL CORE INDEX FUND

April 30, 2005


*Security*	*Shares*	*Value*
COMMON STOCKS – 99.92%

ADVERTISING – 1.29%
ADVO Inc.	3,833	$	110,429
Catalina Marketing Corp.	6,261		145,568
Donnelley (R.H.) Corp.¹	3,960		225,522

			481,519

AEROSPACE & DEFENSE – 2.23%
Curtiss-Wright Corp.	1,619		87,750
DRS Technologies Inc.¹	3,177		140,582
EDO Corp.	1,942		57,930
Esterline Technologies Corp.¹	3,199		103,392
Moog Inc. Class A¹	4,348		129,614
Orbital Sciences Corp.^1,2	6,225		58,017
Titan Corp. (The)¹	10,734		192,675
Triumph Group Inc.¹	2,000		62,260

			832,220

AGRICULTURE – 0.33%
Delta & Pine Land Co.	4,825		121,590

			121,590

AIRLINES – 0.59%
Alaska Air Group Inc.¹	3,223		85,957
SkyWest Inc.	7,386		133,539

			219,496

APPAREL – 1.01%
K-Swiss Inc. Class A	2,431		72,930
Skechers U.S.A. Inc. Class A¹	2,725		33,354
Warnaco Group Inc. (The)¹	5,510		123,755
Wolverine World Wide Inc.	7,343		148,989

			379,028

BANKS – 6.55%
Alabama National Bancorp	1,893		108,242
Boston Private Financial Holdings Inc.	3,463		77,363
CVB Financial Corp.²	6,099		104,903
First Community Bancorp	1,631		67,442
First Republic Bank	3,016		94,371
Fremont General Corp.	8,509		184,560
Frontier Financial Corp.	2,358		85,053
Greater Bay Bancorp²	6,560		165,050
Hanmi Financial Corp.	6,185		90,610
Harleysville National Corp.	3,096		61,734
Independent Bank Corp. (Michigan)	2,549		69,639
Main Street Banks Inc.	2,086		49,417
MB Financial Inc.	3,445		125,295
Mid-State Bancshares	3,034		73,969
Oriental Financial Group Inc.	2,739		38,209
Pacific Capital Bancorp	5,528		159,372
Prosperity Bancshares Inc.	2,510		64,130
Riggs National Corp.	2,599		50,758
Sandy Spring Bancorp Inc.²	1,800		55,908
Southwest Bancorp of Texas Inc.	8,213		136,336
Sterling Bancshares Inc.	5,775		77,558
Sterling Financial Corp. (Pennsylvania)	2,519		63,630
Texas Regional Bancshares Inc. Class A	5,761		160,559
Umpqua Holdings Corp.²	5,540		123,099
United Community Banks Inc.²	3,928		89,126
Unizan Financial Corp.	2,753		69,981

			2,446,314

BIOTECHNOLOGY – 1.90%
Bio-Rad Laboratories Inc. Class A¹	2,043		98,759
Cambrex Corp.	3,061		58,159
Enzo Biochem Inc.¹	3,886		52,927
Human Genome Sciences Inc.¹	16,592		171,561
ICOS Corp.¹	7,390		166,718
Myriad Genetics Inc.^1,2	3,848		62,184
Vertex Pharmaceuticals Inc.¹	10,212		97,422

			707,730

BUILDING MATERIALS – 1.21%
Eagle Materials Inc.²	1,214		91,353
ElkCorp	2,390		65,725
Genlyte Group Inc. (The)¹	1,545		122,580
NCI Building Systems Inc.¹	2,631		85,297
Universal Forest Products Inc.	2,307		87,804

			452,759

CHEMICALS – 1.09%
Arch Chemicals Inc.	3,008		77,546
Minerals Technologies Inc.	2,632		171,922
Olin Corp.	8,880		157,531

			406,999

COMMERCIAL SERVICES – 3.56%
ABM Industries Inc.	5,088		92,449


58		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR SMALL CORE INDEX FUND

April 30, 2005


*Security*	*Shares*	*Value*
Arbitron Inc.	3,905	$	165,260
Bowne & Co. Inc.	4,370		56,897
Chemed Corp.	1,577		111,715
Corrections Corp. of America¹	4,128		156,245
Cross Country Healthcare Inc.¹	3,110		50,102
FTI Consulting Inc.^1,2	5,391		119,033
Kelly Services Inc. Class A	2,318		60,871
Magellan Health Services Inc.¹	3,117		106,165
MAXIMUS Inc.	2,437		74,816
NCO Group Inc.¹	3,699		68,912
Pre-Paid Legal Services Inc.²	1,790		63,921
Spherion Corp.¹	7,551		42,361
TeleTech Holdings Inc.¹	4,797		50,368
Watson Wyatt & Co. Holdings	4,112		108,557

			1,327,672

COMPUTERS – 1.96%
Agilysys Inc.	4,069		53,792
CIBER Inc.^1,2	6,887		53,581
Electronics For Imaging Inc.¹	6,722		110,375
Hutchinson Technology Inc.^1,2	3,295		122,047
Intergraph Corp.¹	4,137		122,331
Lexar Media Inc.^1,2	9,592		43,452
Mentor Graphics Corp.¹	9,556		85,431
PalmOne Inc.^1,2	5,242		112,336
Silicon Storage Technology Inc.¹	10,696		28,024

			731,369

COSMETICS & PERSONAL CARE – 0.40%
Chattem Inc.¹	2,017		82,979
Elizabeth Arden Inc.¹	2,989		65,459

			148,438

DISTRIBUTION & WHOLESALE – 0.99%
Aviall Inc.¹	3,635		106,324
United Stationers Inc.¹	4,228		178,337
WESCO International Inc.¹	3,515		84,993

			369,654

DIVERSIFIED FINANCIAL SERVICES – 2.95%
Accredited Home Lenders Holding Co.^1,2	1,972		78,348
Advanta Corp. Class B	1,942		47,676
Affiliated Managers Group Inc.^1,2	3,751		234,550
CompuCredit Corp.¹	2,079		55,073
Credit Acceptance Corp.¹	1,287		24,131
Financial Federal Corp.	2,221		78,401
Gabelli Asset Management Inc. Class A	780		31,138
Instinet Group Inc.¹	15,738		82,625
Investment Technology Group Inc.¹	5,358		101,856
Knight Trading Group Inc.¹	14,581		122,918
Metris Companies Inc.¹	7,475		90,597
Nelnet Inc. Class A¹	2,709		86,282
Piper Jaffray Companies Inc.¹	2,447		67,660

			1,101,255

ELECTRICAL COMPONENTS & EQUIPMENT – 0.60%
EnerSys¹	2,513		23,698
Power-One Inc.¹	9,039		37,783
Rayovac Corp.¹	4,460		162,522

			224,003

ELECTRONICS – 3.97%
Analogic Corp.	1,367		57,018
Benchmark Electronics Inc.¹	4,903		132,577
Checkpoint Systems Inc.^1,2	4,836		76,554
Coherent Inc.¹	3,844		123,316
CTS Corp.	4,578		48,298
Electro Scientific Industries Inc.¹	3,492		57,723
Itron Inc.^1,2	2,708		97,678
KEMET Corp.¹	10,952		68,450
Methode Electronics Inc.	4,405		49,644
Orbotech Ltd.¹	4,073		82,804
Paxar Corp.¹	4,583		82,127
Plexus Corp.¹	5,351		64,801
Technitrol Inc.	4,650		60,357
Thomas & Betts Corp.¹	7,492		233,151
Varian Inc.¹	4,439		147,242
Watts Water Technologies Inc. Class A	3,144		98,250

			1,479,990

ENERGY - ALTERNATE SOURCES – 0.22%
FuelCell Energy Inc.^1,2	5,579		44,632
Plug Power Inc.^1,2	6,590		36,575

			81,207

ENGINEERING & CONSTRUCTION – 0.61%
Dycom Industries Inc.¹	6,186		143,886
EMCOR Group Inc.¹	1,904		85,071

			228,957


SCHEDULES OF INVESTMENTS		59

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR SMALL CORE INDEX FUND

April 30, 2005


*Security*	*Shares*	*Value*
ENTERTAINMENT – 0.97%
Argosy Gaming Co.¹	3,554	$	163,271
Isle of Capri Casinos Inc.¹	2,055		49,649
Speedway Motorsports Inc.	1,694		58,104
Vail Resorts Inc.¹	3,578		92,563

			363,587

ENVIRONMENTAL CONTROL – 0.20%
Tetra Tech Inc.^1,2	7,127		75,475

			75,475

FOOD – 1.64%
Flowers Foods Inc.	5,181		149,420
Hain Celestial Group Inc.^1,2	3,694		65,569
Performance Food Group Co.¹	5,937		159,646
Ralcorp Holdings Inc.	3,741		148,218
Tootsie Roll Industries Inc.	2,931		90,509

			613,362

HAND & MACHINE TOOLS – 0.81%
Baldor Electric Co.²	3,730		92,877
Franklin Electric Co. Inc.	2,036		72,400
Lincoln Electric Holdings Inc.	4,532		138,453

			303,730

HEALTH CARE - PRODUCTS – 3.05%
CONMED Corp.¹	3,784		112,460
Invacare Corp.	3,830		156,877
Mentor Corp.	4,748		174,252
Oakley Inc.	3,250		43,388
PSS World Medical Inc.^1,2	8,190		91,400
Steris Corp.¹	8,778		207,863
Sybron Dental Specialties Inc.¹	4,956		184,611
Viasys Healthcare Inc.¹	3,324		70,602
West Pharmaceutical Services Inc.	3,622		95,403

			1,136,856

HEALTH CARE - SERVICES – 2.91%
AMERIGROUP Corp.¹	6,354		223,152
Apria Healthcare Group Inc.¹	6,356		191,316
Genesis HealthCare Corp.^1,2	2,505		99,950
Molina Healthcare Inc.^1,2	1,403		61,381
Pediatrix Medical Group Inc.¹	2,856		194,465
Sierra Health Services Inc.^1,2	3,057		197,757
Sunrise Senior Living Inc.¹	2,299		117,801

			1,085,822

HOME BUILDERS – 2.26%
Brookfield Homes Corp.	1,999		85,817
Fleetwood Enterprises Inc.¹	6,854		52,365
Meritage Homes Corp.¹	2,719		172,086
Monaco Coach Corp.²	3,387		48,028
Technical Olympic USA Inc.	1,817		38,248
Thor Industries Inc.²	4,992		134,534
WCI Communities Inc.^1,2	4,956		138,917
William Lyon Homes Inc.^1,2	555		49,062
Winnebago Industries Inc.²	4,263		124,224

			843,281

HOME FURNISHINGS – 0.46%
American Woodmark Corp.	1,359		43,271
Ethan Allen Interiors Inc.²	4,264		128,474

			171,745

HOUSEHOLD PRODUCTS & WARES – 1.37%
Central Garden & Pet Co.¹	2,330		96,905
Harland (John H.) Co.	3,504		126,144
Helen of Troy Ltd.¹	2,720		75,997
Jarden Corp.^1,2	3,482		155,541
WD-40 Co.	1,989		55,772

			510,359

HOUSEWARES – 0.69%
Toro Co.	6,196		256,019

			256,019

INSURANCE – 3.64%
Arch Capital Group Ltd.¹	4,029		161,120
Bristol West Holdings Inc.	2,314		34,895
Danielson Holding Corp.¹	7,058		101,353
Direct General Corp.²	2,173		38,592
Hilb, Rogal & Hobbs Co.	4,010		140,390
Philadelphia Consolidated Holding Corp.¹	2,389		179,175
ProAssurance Corp.¹	3,410		127,909
RLI Corp.	2,863		122,823
Scottish Re Group Ltd.	4,157		97,606
State Auto Financial Corp.	1,393		37,945
Triad Guaranty Inc.¹	1,162		58,460
21st Century Insurance Group	3,218		42,413
U.S.I. Holdings Corp.¹	4,846		54,954
UICI	4,160		96,595


60		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR SMALL CORE INDEX FUND

April 30, 2005


*Security*	*Shares*	*Value*
Universal American Financial Corp.¹	3,769	$	63,131

			1,357,361

INTERNET – 1.23%
Ariba Inc.¹	8,502		51,352
DoubleClick Inc.¹	15,011		120,688
NetBank Inc.	5,942		48,784
Priceline.com Inc.^1,2	3,111		78,895
ProQuest Co.¹	2,827		91,708
United Online Inc.¹	7,800		68,562

			459,989

IRON & STEEL – 1.42%
Cleveland-Cliffs Inc.	2,733		158,541
Gibraltar Industries Inc.	3,726		78,283
Reliance Steel & Aluminum Co.	3,541		133,602
Steel Dynamics Inc.	5,927		161,096

			531,522

LEISURE TIME – 0.47%
K2 Inc.¹	6,006		76,396
Nautilus Inc.	3,965		98,570

			174,966

LODGING – 0.96%
Ameristar Casinos Inc.	1,451		71,534
Aztar Corp.¹	4,344		118,635
Kerzner International Ltd.¹	2,171		119,600
Marcus Corp.	2,629		50,345

			360,114

MACHINERY – 3.99%
Applied Industrial Technologies Inc.	3,469		96,785
Briggs & Stratton Corp.	6,549		211,991
Flowserve Corp.¹	7,038		195,375
Gardner Denver Inc.¹	2,537		92,702
JLG Industries Inc.²	6,130		124,929
Joy Global Inc.	9,853		333,721
Nordson Corp.	3,282		105,746
Stewart & Stevenson Services Inc.	3,389		81,336
Tecumseh Products Co. Class A	1,692		58,780
Thomas Industries Inc.	2,013		79,453
Unova Inc.^1,2	6,016		106,844

			1,487,662

MANUFACTURING – 1.69%
AptarGroup Inc.	4,298		207,293
CLARCOR Inc.	3,238		163,875
ESCO Technologies Inc.¹	1,641		120,318
Federal Signal Corp.	6,180		86,705
Tredegar Corp.	3,212		52,227

			630,418

MEDIA – 1.74%
Cox Radio Inc. Class A¹	4,832		75,959
Gray Television Inc.	5,442		71,562
Liberty Corp.	2,072		75,131
Martha Stewart Living Omnimedia Inc. Class A^1,2	2,517		50,919
Media General Inc. Class A	2,652		162,515
Primedia Inc.¹	19,655		86,875
Pulitzer Inc.	1,276		81,217
Sinclair Broadcast Group Inc. Class A	5,825		44,620

			648,798

METAL FABRICATE & HARDWARE – 0.65%
Kaydon Corp.²	3,568		97,906
Worthington Industries Inc.	9,005		146,421

			244,327

MINING – 1.06%
AMCOL International Corp.	3,083		58,916
Apex Silver Mines Ltd.^, ²	5,553		72,855
Century Aluminum Co.^1,2	2,994		69,760
Meridian Gold Inc.¹	12,671		193,106

			394,637

OFFICE & BUSINESS EQUIPMENT – 0.42%
Global Imaging Systems Inc.^1,2	2,917		101,191
Imagistics International Inc.¹	2,093		56,197

			157,388

OFFICE FURNISHINGS – 0.09%
Interface Inc. Class A¹	5,591		33,546

			33,546

OIL & GAS – 4.47%
Berry Petroleum Co. Class A	2,314		108,110
Cimarex Energy Co.^1,2	4,988		177,074
Comstock Resources Inc.¹	4,934		124,830
Denbury Resources Inc.¹	6,918		219,577


SCHEDULES OF INVESTMENTS		61

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR SMALL CORE INDEX FUND

April 30, 2005


*Security*	*Shares*	*Value*
Encore Acquisition Co.¹	3,524	$	129,401
Frontier Oil Corp.	3,402		143,156
Magnum Hunter Resources Inc.¹	10,942		157,893
Meridian Resource Corp. (The)¹	9,511		38,424
Range Resources Corp.	9,433		213,657
Remington Oil & Gas Corp.¹	2,763		80,597
St. Mary Land & Exploration Co.	7,549		163,813
TEL Offshore Trust	159		1,166
Whiting Petroleum Corp.^1,2	3,606		109,154

			1,666,852

OIL & GAS SERVICES – 1.92%
Core Laboratories NV^1,2	3,329		78,564
Lone Star Technologies Inc.¹	3,633		141,469
Maverick Tube Corp.¹	5,412		157,435
Oceaneering International Inc.¹	3,190		104,664
Oil States International Inc.¹	3,757		76,305
RPC Inc.	2,196		31,930
Seacor Holdings Inc.^1,2	2,193		125,023

			715,390

PACKAGING & CONTAINERS – 0.11%
Graphic Packaging Corp.^1,2	12,445		40,322

			40,322

PHARMACEUTICALS – 3.16%
Accredo Health Inc.¹	6,204		281,041
Andrx Corp.¹	9,258		184,327
AtheroGenics Inc.^1,2	4,382		47,063
MannKind Corp.^1,2	2,692		37,284
Nabi Biopharmaceuticals¹	7,390		80,551
NeighborCare Inc.¹	4,953		142,250
Par Pharmaceutical Companies Inc.¹	4,347		130,540
Perrigo Co.	9,105		166,804
Priority Healthcare Corp. Class B¹	4,744		108,068

			1,177,928

REAL ESTATE – 0.63%
Jones Lang LaSalle Inc.¹	3,682		138,075
Trammell Crow Co.¹	4,544		96,787

			234,862

REAL ESTATE INVESTMENT TRUSTS – 4.11%
Capital Automotive REIT	5,547		188,487
Corporate Office Properties Trust	4,307		113,274
Entertainment Properties Trust	3,186		137,635
Equity Lifestyle Properties Inc.²	2,662		97,429
Glimcher Realty Trust²	4,486		112,913
Heritage Property Investment Trust Inc.²	3,363		103,580
Inland Real Estate Corp.	7,620		116,967
LaSalle Hotel Properties	3,542		107,606
Maguire Properties Inc.	4,703		119,927
Pennsylvania Real Estate Investment Trust²	4,285		180,613
Tanger Factory Outlet Centers Inc.	3,417		79,138
Taubman Centers Inc.	5,987		177,215

			1,534,784

RETAIL – 7.18%
AFC Enterprises Inc.¹	2,620		70,740
Big 5 Sporting Goods Corp.	2,858		68,278
Big Lots Inc.^1,2	14,746		150,114
Cash America International Inc.	3,585		53,237
CKE Restaurants Inc.^1,2	6,722		99,754
CSK Auto Corp.¹	5,920		91,819
Dress Barn Inc.¹	2,690		46,268
Electronics Boutique Holdings Corp.¹	1,670		93,069
Fred’s Inc.²	4,630		66,857
GameStop Corp.^1,2	2,521		62,042
Genesco Inc.¹	2,848		73,279
IHOP Corp.²	2,560		104,704
Insight Enterprises Inc.¹	6,131		110,971
Kenneth Cole Productions Inc. Class A	1,162		34,837
Krispy Kreme Doughnuts Inc.^1,2	7,161		42,393
Linens ’n Things Inc.^1,2	5,661		132,071
Men’s Wearhouse Inc. (The)¹	4,178		172,426
Movie Gallery Inc.²	3,385		91,497
Nu Skin Enterprises Inc. Class A²	6,753		148,566
Pier 1 Imports Inc.²	10,162		147,552
Ruby Tuesday Inc.²	8,010		180,225
School Specialty Inc.¹	2,896		107,471
Sports Authority Inc. (The)^1,2	2,881		76,635
Stage Stores Inc.¹	2,242		84,792
Steak n Shake Co. (The)¹	3,407		61,599
Too Inc.¹	4,377		100,715
West Marine Inc.^1,2	1,705		27,877
Zale Corp.¹	6,624		179,047

			2,678,835


62		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR SMALL CORE INDEX FUND

April 30, 2005


*Security*	*Shares*	*Value*
SAVINGS & LOANS – 2.66%
Bank Mutual Corp.	9,370	$	98,666
BankAtlantic Bancorp Inc. Class A	5,878		100,279
BankUnited Financial Corp. Class A	3,577		85,419
Brookline Bancorp Inc.²	7,727		115,905
First Niagara Financial Group Inc.	14,958		187,573
Harbor Florida Bancshares Inc.²	2,757		95,392
Northwest Bancorp Inc.	1,539		31,657
Ocwen Financial Corp.^1,2	4,549		33,117
Provident Financial Services Inc.²	8,917		151,500
Sterling Financial Corp. (Washington)¹	2,857		93,395

			992,903

SEMICONDUCTORS – 3.63%
Amkor Technology Inc.¹	11,325		36,580
Applied Micro Circuits Corp.¹	39,222		104,723
Atmel Corp.¹	56,581		130,702
Cirrus Logic Inc.¹	9,484		40,022
Conexant Systems Inc.¹	59,915		67,105
Credence Systems Corp.¹	11,463		72,102
Cypress Semiconductor Corp.^1,2	15,952		191,264
Emulex Corp.¹	10,528		163,500
Integrated Device Technology Inc.¹	13,590		145,413
Lattice Semiconductor Corp.¹	13,223		60,297
MKS Instruments Inc.¹	4,637		68,628
Mykrolis Corp.¹	5,163		65,828
ON Semiconductor Corp.¹	12,685		43,636
Photronics Inc.¹	3,767		59,895
TriQuint Semiconductor Inc.¹	17,013		50,358
Vitesse Semiconductor Corp.¹	27,275		56,732

			1,356,785

SOFTWARE – 2.85%
CCC Information Services Group Inc.¹	1,378		32,149
CSG Systems International Inc.¹	6,180		106,234
eFunds Corp.¹	6,048		132,209
Epicor Software Corp.¹	4,884		53,773
infoUSA Inc.	4,368		47,961
Inter-Tel Inc.	2,497		47,543
Lawson Software Inc.¹	7,357		38,845
MicroStrategy Inc. Class A¹	1,588		69,126
NDCHealth Corp.²	4,501		68,730
NetIQ Corp.¹	7,108		76,198
Parametric Technology Corp.¹	34,137		181,609
SERENA Software Inc.^1,2	3,767		71,686
SYNNEX Corp.¹	840		12,676
THQ Inc.^1,2	4,941		124,612

			1,063,351

TELECOMMUNICATIONS – 2.57%
Adaptec Inc.¹	13,605		49,794
Anixter International Inc.¹	3,963		146,314
Aspect Communications Corp.¹	5,206		44,303
Centennial Communications Corp.¹	2,988		34,362
Commonwealth Telephone Enterprises Inc.¹	2,667		123,909
CommScope Inc.^1,2	6,904		97,484
General Communication Inc. Class A¹	5,421		45,753
Golden Telecom Inc.²	1,752		46,936
Powerwave Technologies Inc.¹	11,958		86,337
Premiere Global Services Inc.¹	8,244		89,035
Price Communications Corp.¹	5,346		90,775
Sycamore Networks Inc.¹	23,751		79,803
Time Warner Telecom Inc. Class A¹	6,227		25,344

			960,149

TEXTILES – 0.25%
G&K Services Inc. Class A	2,450		94,031

			94,031

TOYS, GAMES & HOBBIES – 0.24%
RC2 Corp.¹	2,566		88,938

			88,938

TRANSPORTATION – 2.96%
Florida East Coast Industries Inc.	2,296		97,810
Genesee & Wyoming Inc. Class A¹	3,122		74,866
Kirby Corp.¹	2,525		102,869
Offshore Logistics Inc.¹	2,700		78,219
Old Dominion Freight Line Inc.¹	2,466		69,295
OMI Corp.²	11,703		212,878
Overnite Corp.	3,537		106,039
Pacer International Inc.¹	4,724		97,929
Swift Transportation Co. Inc.^1,2	6,156		131,307
Werner Enterprises Inc.	7,099		131,899

			1,103,111

TOTAL COMMON STOCKS (Cost: $40,386,543)			37,289,405


SCHEDULES OF INVESTMENTS		63

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR SMALL CORE INDEX FUND

April 30, 2005


*Security*	*Principal*		*Value*
SHORT-TERM INVESTMENTS – 15.25%

COMMERCIAL PAPER³ – 4.06%
Alpine Securitization Corp.
2.80%, 05/04/05	$	73,018	$	73,006
Amstel Funding Corp.
2.95%, 08/19/05		10,612		10,518
Amsterdam Funding Corp.
2.80% - 3.02%, 05/04/05 - 05/27/05		28,850		28,821
ANZ National Bank Ltd.
2.94%, 08/15/05		12,765		12,656
Blue Ridge Asset Funding Corp.
3.02%, 06/02/05		38,296		38,196
Bryant Park Funding LLC
2.75%, 05/03/05		5,106		5,106
Cancara Asset Securitisation LLC
2.80% - 2.97%, 05/03/05 - 05/23/05		84,672		84,651
Cantabric Finance LLC
3.04% - 3.12%, 06/28/05 - 07/25/05		31,913		31,705
Chariot Funding LLC
2.99%, 05/20/05		6,070		6,062
Charta LLC
2.99%, 06/16/05 - 06/21/05		53,614		53,402
Chesham Finance LLC
2.89% - 3.01%, 05/10/05 - 06/21/05		90,634		90,524
Corporate Asset Funding
2.75% - 2.99%, 05/05/05 - 06/16/05		47,232		47,117
CRC Funding LLC
2.95% - 3.00%, 05/02/05 - 06/29/05		44,679		44,607
DEPFA Bank PLC
2.28%, 05/03/05		12,765		12,765
Deutsche Bank Financial LLC
2.80%, 05/03/05		76,592		76,586
Edison Asset Securitization
2.26% - 3.12%, 05/03/05 - 09/06/05		86,804		86,586
Fairway Finance LLC
3.15%, 09/15/05		22,711		22,441
Falcon Asset Securitization Corp.
2.79% - 3.02%, 05/03/05 - 06/01/05		51,150		51,089
Ford Credit Auto Receivables
2.74%, 05/04/05		12,510		12,508
Fortis Funding LLC
2.35%, 05/09/05		35,743		35,727
Gemini Securitization Corp.
3.02%, 06/27/05		2,553		2,541
General Electric Capital Corp.
2.74%, 07/07/05		12,765		12,701
Georgetown Funding Co. LLC
2.81% - 3.05%, 05/03/05 - 06/16/05		56,168		56,091
Grampian Funding LLC
3.00% - 3.13%, 08/22/05 - 09/09/05		76,592		75,850
Jupiter Securization Corp.
2.99% - 3.02%, 05/19/05 - 06/03/05		103,062		102,857
Kitty Hawk Funding Corp.
2.88%, 05/04/05		19,280		19,276
Moat Funding LLC
2.74%, 05/02/05		17,871		17,871
Mortgage Interest Networking Trust
2.82% - 3.05%, 05/02/05 - 05/24/05		33,190		33,186
Nordea North America Inc.
2.74%, 07/11/05		12,765		12,697
Park Granada LLC
3.04%, 05/25/05 - 05/31/05		16,595		16,561
Ranger Funding Co. LLC
2.89% - 3.02%, 05/04/05 - 05/27/05		41,271		41,229
Santander Central Hispano
2.75%, 07/08/05		31,913		31,750
Scaldis Capital LLC
2.75% - 2.99%, 05/16/05 - 07/08/05		75,323		75,198


64		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR SMALL CORE INDEX FUND

April 30, 2005


*Security*	*Principal*		*Value*
Societe Generale
2.75% - 2.79%, 05/02/05 - 05/03/05	$	88,081	$	88,076
Sydney Capital Corp.
2.81%, 05/04/05		8,425		8,424
Tulip Funding Corp.
2.80% - 3.02%, 05/03/05 - 07/01/05		70,209		70,178
UBS Finance (Delaware)
2.79%, 05/04/05		20,425		20,421
Windmill Funding Corp.
2.80%, 05/04/05		7,889		7,888

				1,516,868

FLOATING RATE NOTES³– 5.51%
Allstate Life Global Funding II
2.91%, 03/08/06⁴		11,744		11,744
American Express Centurion Bank
2.98% - 3.04%, 10/26/05 - 01/24/06		89,357		89,370
Bank of Nova Scotia
2.80% - 2.94%, 09/26/05 - 01/03/06		16,595		16,592
Beta Finance Inc.
2.81% - 3.16%, 05/04/05 - 04/25/06⁴		98,038		98,044
BMW US Capital LLC
2.92%, 04/18/06⁴		25,531		25,531
Canadian Imperial Bank of Commerce
2.86% - 3.00%, 09/13/05 - 12/14/05		86,804		86,792
CC USA Inc.
2.81% - 3.12%, 05/04/05 - 03/23/06⁴		66,380		66,378
Commodore CDO Ltd.
3.08%, 12/12/05		6,383		6,383
Den Danske Bank NY
2.85% - 2.96%, 08/12/05 - 10/17/05		76,592		76,584
DEPFA Bank PLC
2.99%, 03/15/06		25,531		25,531
Dorada Finance Inc.
3.00% - 3.12%, 07/29/05 - 03/27/06⁴		55,402		55,404
Fairway Finance LLC
2.94%, 06/20/05		12,765		12,765
Fifth Third Bancorp
2.98%, 02/23/06⁴		51,061		51,061
Five Finance Inc.
3.01%, 02/27/06⁴		12,765		12,767
General Electric Capital Corp.
3.01%, 05/09/06		11,489		11,503
General Electric Commercial Equipment Financing LLC
2.95%, 11/20/05		7,345		7,345
Greenwich Capital Holdings Inc.
2.83%, 09/02/05		16,595		16,595
Hartford Life Global Funding Trust
2.94%, 04/15/06		25,531		25,531
HBOS Treasury Services PLC
2.87% - 3.08%, 01/10/06 - 04/24/06		76,592		76,593
K2 USA LLC
2.87% - 3.11%, 06/10/05 - 02/15/06⁴		114,888		114,891
Leafs LLC
2.99%, 01/20/06 - 02/21/06⁴		26,807		26,808
Links Finance LLC
2.92% - 3.15%, 11/16/05 - 02/06/06⁴		53,614		53,635
Lothian Mortgages PLC
3.01%, 01/24/06⁴		38,296		38,296
Marshall & Ilsley Corp.
3.09%, 02/20/06		25,531		25,555
MetLife Global Funding I
2.86%, 05/05/06⁴		38,296		38,296
National City Bank (Ohio)
2.84% - 2.95%, 06/10/05 - 08/09/05		63,827		63,825
Nationwide Building Society
2.89% - 3.12%, 01/13/06 - 04/28/06⁴		94,464		94,481


SCHEDULES OF INVESTMENTS		65

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR SMALL CORE INDEX FUND

April 30, 2005


*Security*	*Principal*		*Value*
Norddeutsche Landesbank
3.11%, 07/27/05	$	25,531	$	25,529
Northern Rock PLC
2.88% - 2.99%, 10/25/05 - 02/03/06⁴		76,592		76,592
Permanent Financing PLC
2.87% - 2.89%, 06/10/05 - 03/10/06		90,634		90,634
Royal Bank of Scotland
2.79% - 2.91%, 06/20/05 - 04/05/06		34,658		34,647
Sedna Finance Inc.
2.92%, 01/10/06 - 01/17/06⁴		14,042		14,039
Sigma Finance Inc.
2.82% - 3.16%, 08/17/05 - 01/09/06⁴		130,207		130,195
Societe Generale
2.99%, 03/30/06		21,701		21,694
SunTrust Bank
3.17%, 04/28/06		38,296		38,296
Tango Finance Corp.
2.74% - 2.99%, 05/17/05 - 09/15/05⁴		69,188		69,186
Wachovia Asset Securitization Inc.
3.00% - 3.01%, 05/25/05		69,544		69,544
Wells Fargo & Co.
2.92%, 05/15/06⁴		12,765		12,767
WhistleJacket Capital LLC
2.86% - 2.97%, 06/15/05 - 01/17/06⁴		89,357		89,352
White Pine Finance LLC
2.80% - 3.09%, 05/20/05 - 01/13/06⁴		109,527		109,522
Windmill Funding Corp.
2.78%, 05/03/05		17,871		17,870
Winston Funding Ltd.
3.22%, 07/23/05⁴		18,229		18,229
World Savings Bank
2.86%, 09/09/05		8,936		8,935

				2,055,331

*Security*	Shares or Principal		*Value*
MONEY MARKET FUNDS – 0.38%
Barclays Global Investors Funds Government Money Market Fund, Institutional Shares^3,5		102,123	$	102,123
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares⁵		25,415		25,415
BlackRock Temp Cash Money Market Fund³		3,699		3,699
Short-Term Investment Co. - Prime Money Market Portfolio, Institutional Shares³		10,344		10,344

				141,581

REPURCHASE AGREEMENTS³ – 3.12%
Bank of America N.A. Repurchase Agreement, dated 4/29/05, due 5/2/05, with a maturity value of $638,425 and an effective yield of 2.97%.⁶	$	638,267		638,267
Goldman Sachs & Co. Repurchase Agreements, dated 4/29/05, due 5/2/05, with a total maturity value of $310,446 and effective yields of 2.96% - 3.00%.⁶		310,369		310,369
Merrill Lynch Government Securities Inc. Repurchase Agreements, dated 4/29/05, due 5/2/05, with a total maturity value of $216,771 and effective yields of 2.96% - 3.00%.⁶		216,717		216,717

				1,165,353

TIME DEPOSITS³ – 2.04%
American Express Centurion Bank
3.00%, 05/25/05		63,827		63,827
Banco Bilbao Vizcaya Argentaria SA
3.03% - 3.18%, 06/27/05 - 09/14/05		37,020		37,020
BNP Paribas (New York)
2.78% - 3.03%, 07/11/05 - 08/23/05		35,743		35,743


66		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR SMALL CORE INDEX FUND

April 30, 2005


*Security*	*Principal*		*Value*
Credit Suisse First Boston
2.75% - 2.81%, 05/03/05	$	33,190	$	33,191
Dexia Credit Local SA
2.81% - 3.01%, 05/04/05 - 06/21/05		49,785		49,786
First Tennessee Bank
3.00% - 3.04%, 06/14/05 - 06/27/05		44,679		44,679
HBOS Treasury Services PLC
3.39%, 12/14/05		15,318		15,318
Natexis Banques
2.98%, 08/18/05		25,531		25,531
Norddeutsche Landesbank
2.11%, 06/07/05		25,531		25,530
Societe Generale
2.81%, 05/03/05		17,871		17,871
SunTrust Bank
2.68%, 05/03/05		25,531		25,531
Svenska Handelsbanken AB
3.00%, 06/20/05		12,765		12,765
Toronto-Dominion Bank
1.77% - 3.18%, 05/10/05 - 11/09/05		77,869		77,867
UBS AG
2.67% - 3.40%, 11/09/05 - 12/15/05		20,425		20,425
Washington Mutual Bank
2.81% - 3.15%, 05/02/05 - 07/28/05		164,673		164,673
Wells Fargo Bank N.A.
3.04%, 06/29/05		76,592		76,592
World Savings Bank
2.75%, 05/03/05		35,743		35,743

				762,092

U.S. GOVERNMENT AGENCY NOTES³ – 0.14%
Federal Home Loan Mortgage Corp.
2.06%, 05/31/05		12,728		12,707
Federal National Mortgage Association
2.33%, 07/22/05		38,296		38,096

				50,803

TOTAL SHORT-TERM INVESTMENTS (Cost: $5,692,028)				5,692,028

TOTAL INVESTMENTS IN SECURITIES – 115.17% (Cost: $46,078,571)				42,981,433
Other Assets, Less Liabilities – (15.17%)				(5,660,983	)

NET ASSETS – 100.00%			$	37,320,450

¹	Non-income earning security.

²	All or a portion of this security represents a security on loan. See Note 5.

³	All or a portion of this security (these securities) represent(s) an investment of securities lending collateral. See Note 5.

⁴	All or a portion of this security is 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	The Fund’s investment adviser is an affiliate of the issuer. See Note 2.

⁶	Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 3.12% to 7.13% and maturity dates ranging from 5/25/05 to 8/1/42.

See notes to financial statements.


SCHEDULES OF INVESTMENTS		67

Schedule of Investments

iSHARES^® MORNINGSTAR SMALL GROWTH INDEX FUND

April 30, 2005


*Security*	*Shares*	*Value*
COMMON STOCKS – 100.40%

AEROSPACE & DEFENSE – 1.35%
Armor Holdings Inc.¹	3,078	$	107,761
Engineered Support Systems Inc.	4,013		141,739
Teledyne Technologies Inc.¹	3,064		93,207

			342,707

AGRICULTURE – 0.16%
Tejon Ranch Co.¹	900		39,915

			39,915

AIRLINES – 0.28%
AirTran Holdings Inc.^1,2	8,466		70,268

			70,268

APPAREL – 1.07%
Carter’s Inc.¹	1,808		68,198
DHB Industries Inc.¹	3,169		21,042
Guess? Inc.¹	1,629		21,210
Quiksilver Inc.¹	5,879		161,966

			272,416

BANKS – 2.18%
Bank of the Ozarks Inc.²	1,071		33,169
KNBT Bancorp Inc.	2,968		40,751
NewAlliance Bancshares Inc.	11,499		150,637
PrivateBancorp Inc.²	2,038		63,688
Silicon Valley Bancshares¹	3,582		169,787
Wintrust Financial Corp.	2,062		94,666

			552,698

BIOTECHNOLOGY – 2.83%
Digene Corp.¹	1,602		30,518
Encysive Pharmaceuticals Inc.¹	5,624		54,890
Enzon Pharmaceuticals Inc.¹	4,482		34,736
Exelixis Inc.¹	7,378		50,539
Integra LifeSciences Holdings Corp.¹	1,807		64,022
Martek Biosciences Corp.¹	3,122		119,479
Nektar Therapeutics¹	8,408		119,898
Serologicals Corp.^1,2	3,405		73,310
Telik Inc.^1,2	5,215		84,483
Transkaryotic Therapies Inc.^1,2	2,545		86,225

			718,100

BUILDING MATERIALS – 0.56%
Simpson Manufacturing Co. Inc.	3,709		100,143
Trex Co. Inc.^1,2	1,052		42,269

			142,412

CHEMICALS – 0.59%
Cabot Microelectronics Corp.^1,2	2,500		71,975
Symyx Technologies Inc.¹	3,229		78,691

			150,666

COMMERCIAL SERVICES – 6.75%
Aaron Rents Inc.	3,925		86,193
Advisory Board Co. (The)¹	1,602		65,201
Bright Horizons Family Solutions Inc.^1,2	2,680		90,825
Coinstar Inc.¹	2,372		40,656
Corinthian Colleges Inc.^1,2	9,116		129,538
CoStar Group Inc.^1,2	1,664		65,811
DeVry Inc.¹	6,164		140,539
Euronet Worldwide Inc.¹	2,746		81,172
Gartner Inc. Class A^1,2	3,547		29,937
Gartner Inc. Class B¹	1,870		15,708
Heidrick & Struggles International Inc.¹	1,916		49,548
Jackson Hewitt Tax Service Inc.	3,267		60,178
Korn/Ferry International¹	3,914		56,362
Labor Ready Inc.^1,2	4,148		69,230
MPS Group Inc.¹	10,460		83,575
Navigant Consulting Inc.¹	4,730		111,013
PAREXEL International Corp.¹	2,610		47,580
Resources Connection Inc.^1,2	4,752		90,811
Rollins Inc.	3,522		69,524
Sotheby’s Holdings Inc. Class A¹	4,581		75,037
Strayer Education Inc.	1,478		158,560
TNS Inc.¹	1,357		25,186
Universal Technical Institute Inc.¹	2,062		71,984

			1,714,168

COMPUTERS – 4.65%
Advanced Digital Information Corp.¹	6,397		44,203
Anteon International Corp.¹	3,308		138,274
CACI International Inc. Class A¹	2,935		182,322
Equinix Inc.^1,2	1,700		59,466
FactSet Research Systems Inc.²	3,699		102,684


68		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR SMALL GROWTH INDEX FUND

April 30, 2005


*Security*	*Shares*	*Value*
Kanbay International Inc.¹	2,313	$	41,588
Kronos Inc.¹	3,107		121,328
Magma Design Automation Inc.¹	2,923		17,947
Manhattan Associates Inc.¹	3,016		56,942
McDATA Corp. Class A¹	8,118		25,003
McDATA Corp. Class B¹	2,581		7,588
Mercury Computer Systems Inc.¹	2,124		55,925
MICROS Systems Inc.¹	3,811		151,106
SRA International Inc. Class A¹	1,641		107,239
Synaptics Inc.¹	2,684		48,661
Syntel Inc.	1,280		20,531

			1,180,807

DISTRIBUTION & WHOLESALE – 0.91%
ScanSource Inc.¹	1,250		57,813
SCP Pool Corp.	5,308		172,935

			230,748

DIVERSIFIED FINANCIAL SERVICES – 1.07%
Asset Acceptance Capital Corp.¹	1,782		36,442
eSpeed Inc.¹	3,347		28,918
Greenhill & Co. Inc.	541		17,042
National Financial Partners Corp.	2,683		102,598
Ritchie Bros. Auctioneers Inc.	2,536		86,249

			271,249

ELECTRICAL COMPONENTS & EQUIPMENT – 0.51%
Intermagnetics General Corp.¹	2,804		68,866
Littelfuse Inc.¹	2,239		60,319

			129,185

ELECTRONICS – 2.68%
Brady Corp. Class A	4,074		120,794
Cymer Inc.¹	3,699		91,698
Dionex Corp.¹	2,106		90,453
FEI Co.^1,2	2,475		44,624
Identix Inc.¹	9,045		47,848
Rogers Corp.¹	1,655		57,164
Taser International Inc.^1,2	5,918		51,132
Trimble Navigation Ltd.¹	5,158		177,538

			681,251

ENERGY - ALTERNATE SOURCES – 0.76%
Headwaters Inc.^1,2	4,117		131,620
KFx Inc.^1,2	5,689		62,010

			193,630

ENGINEERING & CONSTRUCTION – 0.63%
Insituform Technologies Inc. Class A^1,2	2,680		39,959
McDermott International Inc.¹	5,934		120,520

			160,479

ENTERTAINMENT – 2.93%
Alliance Gaming Corp.^1,2	4,788		54,583
Gaylord Entertainment Co.^1,2	3,984		159,360
Macrovision Corp.¹	4,971		101,657
Penn National Gaming Inc.¹	6,274		197,631
Scientific Games Corp. Class A¹	6,570		141,058
Shuffle Master Inc.^1,2	3,503		88,241

			742,530

ENVIRONMENTAL CONTROL – 1.06%
Mine Safety Appliances Co.²	2,795		99,782
Waste Connections Inc.¹	4,824		169,901

			269,683

FOOD – 0.35%
United Natural Foods Inc.^1,2	3,312		88,762

			88,762

HEALTH CARE - PRODUCTS – 7.96%
Advanced Medical Optics Inc.¹	3,591		132,795
Advanced Neuromodulation Systems Inc.^1,2	2,000		60,220
Align Technology Inc.^1,2	3,303		27,811
American Medical Systems Holdings Inc.¹	6,421		112,111
Arrow International Inc.	2,214		73,372
ArthroCare Corp.^1,2	2,167		63,666
Biosite Inc.¹	1,600		91,200
Diagnostic Products Corp.	2,291		111,114
Haemonetics Corp.¹	2,523		107,909
Immucor Inc.¹	4,520		134,877
Intuitive Surgical Inc.¹	3,390		145,567
Kyphon Inc.^1,2	2,790		72,959
Laserscope^1,2	1,864		59,052
PolyMedica Corp.	2,742		84,975
ResMed Inc.¹	3,396		210,892
TECHNE Corp.¹	3,922		163,861
Thoratec Corp.¹	4,207		54,481
Ventana Medical Systems Inc.^1,2	3,233		128,738


SCHEDULES OF INVESTMENTS		69

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR SMALL GROWTH INDEX FUND

April 30, 2005


*Security*	*Shares*	*Value*
VISX Inc.¹	4,967	$	118,413
Wright Medical Group Inc.¹	2,628		65,253

			2,019,266

HEALTH CARE - SERVICES – 3.04%
American Healthways Inc.^1,2	3,288		122,807
AmSurg Corp.¹	3,088		79,948
Centene Corp.¹	4,157		115,772
LabOne Inc.¹	1,717		60,232
LifePoint Hospitals Inc.¹	5,016		222,961
United Surgical Partners International Inc.¹	2,374		105,050
Wellcare Health Plans Inc.¹	2,221		65,520

			772,290

HOME FURNISHINGS – 0.51%
Tempur-Pedic International Inc.^1,2	4,561		87,070
TiVo Inc.^1,2	7,406		41,696

			128,766

HOUSEHOLD PRODUCTS & WARES – 0.55%
Yankee Candle Co. Inc. (The)¹	5,012		139,283

			139,283

INTERNET – 8.25%
Akamai Technologies Inc.^1,2	11,905		140,598
aQuantive Inc.^1,2	5,508		61,139
Ask Jeeves Inc.¹	5,732		155,853
Avocent Corp.¹	4,971		124,971
CNET Networks Inc.¹	13,390		132,762
Digital Insight Corp.¹	3,319		66,612
Digital River Inc.^1,2	3,260		86,716
Digitas Inc.¹	8,721		86,948
eResearch Technology Inc.^1,2	4,852		55,119
F5 Networks Inc.¹	3,266		139,817
InfoSpace Inc.^1,2	2,909		90,150
Internet Security Systems Inc.¹	4,313		83,888
j2 Global Communications Inc.¹	2,331		83,263
NetFlix Inc.^1,2	2,682		31,004
NetRatings Inc.¹	1,043		15,155
1-800-FLOWERS.COM Inc.¹	2,493		16,703
Openwave Systems Inc.^1,2	6,469		86,620
Opsware Inc.¹	8,155		38,981
Overstock.com Inc.^1,2	1,251		44,135
RealNetworks Inc.¹	11,419		70,341
RSA Security Inc.¹	7,046		75,674
S1 Corp.¹	6,668		35,207
Sapient Corp.¹	7,905		56,521
Travelzoo Inc.^1,2	278		7,701
ValueClick Inc.¹	8,048		83,377
Verity Inc.¹	3,706		30,389
WebEx Communications Inc.^1,2	3,179		69,366
Websense Inc.¹	2,334		123,819

			2,092,829

LEISURE TIME – 0.40%
Life Time Fitness Inc.¹	1,842		49,863
WMS Industries Inc.^1,2	2,035		51,689

			101,552

LODGING – 0.43%
Choice Hotels International Inc.	1,820		110,146

			110,146

MACHINERY – 1.26%
Cognex Corp.	3,969		86,683
Manitowoc Co. Inc. (The)	2,955		118,200
Middleby Corp. (The)	532		23,429
Wabtec Corp.	4,579		91,580

			319,892

MANUFACTURING – 1.42%
Actuant Corp. Class A¹	2,643		112,565
Ceradyne Inc.^1,2	2,266		45,003
CUNO Inc.¹	1,709		86,680
Matthews International Corp. Class A	3,233		115,127

			359,375

MEDIA – 2.04%
Central European Media Enterprises Ltd.¹	1,565		71,990
Crown Media Holdings Inc.¹	927		8,111
Cumulus Media Inc. Class A¹	5,283		68,573
Emmis Communications Corp.¹	4,997		77,104
Entravision Communications Corp.¹	5,623		44,253
Lin TV Corp. Class A^1,2	2,690		41,937
Mediacom Communications Corp.¹	6,016		33,268
Radio One Inc.¹	2,313		30,115
Radio One Inc. Class D¹	6,512		85,112


70		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR SMALL GROWTH INDEX FUND

April 30, 2005


*Security*	*Shares*	*Value*
Salem Communications Corp. Class A¹	1,233	$	23,698
Spanish Broadcasting System Inc. Class A¹	4,078		34,051

			518,212

MINING – 0.50%
Coeur d’Alene Mines Corp.¹	23,635		73,032
Hecla Mining Co.¹	11,677		54,415

			127,447

OIL & GAS – 4.51%
Atwood Oceanics Inc.¹	1,306		74,533
Energy Partners Ltd.^1,2	3,087		70,569
Grey Wolf Inc.¹	17,124		102,744
Helmerich & Payne Inc.	4,660		179,130
Penn Virginia Corp.	1,628		66,862
Petroleum Development Corp.¹	1,629		41,702
Quicksilver Resources Inc.^1,2	3,084		158,302
Southwestern Energy Co.¹	3,646		214,203
Spinnaker Exploration Co.¹	2,701		86,459
Unit Corp.¹	3,885		149,029

			1,143,533

OIL & GAS SERVICES – 3.01%
Cal Dive International Inc.¹	3,589		159,639
CARBO Ceramics Inc.	1,188		78,859
Global Industries Ltd.¹	7,720		74,421
Hydril Co. LP¹	1,802		94,785
Newpark Resources Inc.¹	8,406		50,520
Superior Energy Services Inc.¹	7,528		112,017
Tetra Technologies Inc.¹	2,239		60,520
Universal Compression Holdings Inc.¹	2,073		72,762
W-H Energy Services Inc.¹	2,719		59,872

			763,395

PHARMACEUTICALS – 5.74%
Adolor Corp.¹	3,726		33,124
Alkermes Inc.¹	9,020		101,475
Connetics Corp.^1,2	3,523		76,555
CV Therapeutics Inc.¹	3,167		62,770
Dendreon Corp.¹	5,518		25,493
First Horizon Pharmaceutical Corp.¹	2,719		49,241
Idenix Pharmaceuticals Inc.¹	1,605		30,351
Impax Laboratories Inc.^1,2	4,932		80,244
Inspire Pharmaceuticals Inc.^1,2	3,932		27,760
Kos Pharmaceuticals Inc.¹	1,447		69,702
K-V Pharmaceutical Co. Class A^1,2	3,606		84,380
Ligand Pharmaceuticals Inc. Class B¹	7,507		39,637
Medicines Co. (The)¹	4,507		96,224
Noven Pharmaceuticals Inc.¹	2,410		40,078
NPS Pharmaceuticals Inc.^1,2	3,877		47,106
Onyx Pharmaceuticals Inc.¹	3,335		103,018
Pharmion Corp.¹	1,972		45,553
Salix Pharmaceuticals Ltd.¹	3,681		52,638
Tanox Inc.¹	2,455		23,617
Taro Pharmaceutical Industries Ltd.¹	2,428		70,558
United Therapeutics Inc.^1,2	2,151		103,226
USANA Health Sciences Inc.¹	1,062		43,892
Vicuron Pharmaceuticals Inc.¹	6,016		98,362
Zymogenetics Inc.¹	3,423		52,920

			1,457,924

REAL ESTATE INVESTMENT TRUSTS – 0.14%
Global Signal Inc.	1,179		35,181

			35,181

RETAIL – 8.98%
AC Moore Arts & Crafts Inc.^1,2	1,378		35,842
Aeropostale Inc.¹	5,608		156,631
Bebe Stores Inc.²	1,145		37,006
Cabela’s Inc. Class A¹	4,422		88,130
CEC Entertainment Inc.¹	3,690		133,578
Children’s Place Retail Stores Inc. (The)¹	1,412		52,541
Christopher & Banks Corp.²	3,596		56,170
Coldwater Creek Inc.^1,2	3,169		52,986
Copart Inc.¹	6,741		146,145
Cost Plus Inc.^1,2	2,222		51,528
Dick’s Sporting Goods Inc.¹	3,192		98,186
Finish Line Inc. (The)	4,002		72,116
Guitar Center Inc.¹	2,527		124,707
Hibbet Sporting Goods Inc.¹	2,043		55,100
Hot Topic Inc.^1,2	4,575		91,454
99 Cents Only Stores¹	4,818		53,383
P.F. Chang’s China Bistro Inc.^1,2	2,425		134,636
Panera Bread Co. Class A¹	2,885		144,308
Rare Hospitality International Inc.¹	3,401		94,616
Red Robin Gourmet Burgers Inc.¹	1,270		61,544


SCHEDULES OF INVESTMENTS		71

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR SMALL GROWTH INDEX FUND

April 30, 2005


*Security*	*Shares*	*Value*
Select Comfort Corp.^1,2	3,671	$	81,203
Sonic Corp.¹	5,957		190,862
Stein Mart Inc.¹	2,618		53,041
Tractor Supply Co.¹	3,539		142,339
Tuesday Morning Corp.¹	2,680		70,377

			2,278,429

SAVINGS & LOANS – 0.52%
Commercial Capital Bancorp Inc.	4,952		78,192
Fidelity Bankshares Inc.	2,332		53,776

			131,968

SEMICONDUCTORS – 6.67%
AMIS Holdings Inc.¹	3,411		38,408
ATMI Inc.^1,2	3,148		72,136
Brooks Automation Inc.¹	4,462		57,381
DSP Group Inc.¹	2,860		68,926
Entegris Inc.¹	5,167		44,488
Exar Corp.¹	4,111		52,169
FormFactor Inc.¹	2,977		67,995
Genesis Microchip Inc.^1,2	3,312		47,395
Integrated Circuit Systems Inc.¹	7,308		133,517
Micrel Inc.¹	6,557		61,636
Microsemi Corp.¹	5,955		100,759
OmniVision Technologies Inc.^1,2	5,665		79,310
Pixelworks Inc.¹	4,734		36,452
Power Integrations Inc.^1,2	3,104		67,512
Semtech Corp.¹	7,484		126,405
SigmaTel Inc.¹	2,656		69,561
Silicon Image Inc.¹	7,557		76,099
Silicon Laboratories Inc.^1,2	4,064		103,226
Siliconix Inc.¹	611		20,145
Skyworks Solutions Inc.¹	15,447		80,942
Tessera Technologies Inc.¹	2,667		70,836
Varian Semiconductor Equipment Associates Inc.¹	3,663		136,593
Veeco Instruments Inc.^1,2	2,583		34,380
Zoran Corp.¹	4,300		45,494

			1,691,765

SOFTWARE – 7.66%
Advent Software Inc.¹	2,745		48,971
Altiris Inc.^1,2	2,014		32,808
ANSYS Inc.¹	3,097		94,273
Ascential Software Corp.¹	5,832		107,717
Avid Technology Inc.¹	3,421		169,374
Blackbaud Inc.	1,372		17,905
Borland Software Corp.¹	8,099		47,055
Cerner Corp.^1,2	2,835		164,600
Dendrite International Inc.¹	3,817		58,858
Eclipsys Corp.¹	3,887		52,513
FileNET Corp.¹	3,971		105,232
Hyperion Solutions Corp.¹	3,929		159,792
IDX Systems Corp.¹	2,143		66,369
Informatica Corp.¹	8,676		67,065
Jupitermedia Corp.^1,2	1,940		24,657
Keane Inc.¹	5,337		63,510
ManTech International Corp. Class A¹	1,781		42,833
Midway Games Inc.^1,2	2,503		23,003
Progress Software Corp.¹	3,643		97,195
Quest Software Inc.¹	5,082		60,273
Renaissance Learning Inc.	504		8,402
SS&C Technologies Inc.	1,684		42,790
Take-Two Interactive Software Inc.¹	6,768		159,251
Transaction Systems Architects Inc. Class A¹	3,833		79,458
Ulticom Inc.¹	1,206		10,770
Verint Systems Inc.¹	1,188		37,802
Wind River Systems Inc.¹	7,830		101,633

			1,944,109

TELECOMMUNICATION EQUIPMENT – 0.08%
Novatel Wireless Inc.¹	2,323		20,814

			20,814

TELECOMMUNICATIONS – 3.61%
Aeroflex Inc.¹	7,468		59,221
Alamosa Holdings Inc.¹	12,756		165,700
Atheros Communications Inc.¹	2,872		20,908
Ditech Communications Corp.¹	3,322		37,572
Extreme Networks Inc.¹	10,653		47,406
Foundry Networks Inc.¹	11,949		100,372
Harmonic Inc.¹	7,135		39,314
InterDigital Communications Corp.¹	5,480		89,653
Ixia¹	2,623		41,994
Newport Corp.¹	4,304		59,180
RF Micro Devices Inc.¹	18,521		72,602


72		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR SMALL GROWTH INDEX FUND

April 30, 2005


*Security*	Shares or Principal		*Value*
Tekelec^1,2		6,248	$	85,035
UbiquiTel Inc.¹		7,457		53,914
Viasat Inc.¹		2,485		44,258

				917,129

TOYS, GAMES & HOBBIES – 0.12%
LeapFrog Enterprises Inc.^1,2		3,042		30,450

				30,450

TRANSPORTATION – 1.68%
EGL Inc.¹		3,422		66,763
Forward Air Corp.		3,204		77,088
Heartland Express Inc.		4,614		85,544
Kansas City Southern Industries Inc.^1,2		6,308		119,347
Knight Transportation Inc.		3,691		77,991

				426,733

TOTAL COMMON STOCKS (Cost: $28,610,792)				25,482,162

SHORT-TERM INVESTMENTS – 17.54%

COMMERCIAL PAPER³ – 4.67%
Alpine Securitization Corp.
2.80%, 05/04/05	$	57,059		57,050
Amstel Funding Corp.
2.95%, 08/19/05		8,293		8,219
Amsterdam Funding Corp.
2.80% - 3.02%, 05/04/05 - 05/27/05		22,544		22,521
ANZ National Bank Ltd.
2.94%, 08/15/05		9,975		9,891
Blue Ridge Asset Funding Corp.
3.02%, 06/02/05		29,926		29,848
Bryant Park Funding LLC
2.75%, 05/03/05		3,990		3,990
Cancara Asset Securitisation LLC
2.80% - 2.97%, 05/03/05 - 05/23/05		66,167		66,150
Cantabric Finance LLC
3.04% - 3.12%, 06/28/05 - 07/25/05		24,938		24,776
Chariot Funding LLC
2.99%, 05/20/05		4,744		4,736

*Security*	*Principal*		*Value*
Charta LLC
2.99%, 06/16/05 - 06/21/05	$	41,897	$	41,731
Chesham Finance LLC
2.89% - 3.01%, 05/10/05 - 06/21/05		70,825		70,739
Corporate Asset Funding
2.75% - 2.99%, 05/05/05 - 06/16/05		36,909		36,819
CRC Funding LLC
2.95% - 3.00%, 05/02/05 - 06/29/05		34,914		34,858
DEPFA Bank PLC
2.28%, 05/03/05		9,975		9,975
Deutsche Bank Financial LLC
2.80%, 05/03/05		59,852		59,848
Edison Asset Securitization
2.26% - 3.12%, 05/03/05 - 09/06/05		67,833		67,663
Fairway Finance LLC
3.15%, 09/15/05		17,747		17,536
Falcon Asset Securitization Corp.
2.79% - 3.02%, 05/03/05 - 06/01/05		39,971		39,923
Ford Credit Auto Receivables
2.74%, 05/04/05		9,776		9,775
Fortis Funding LLC
2.35%, 05/09/05		27,931		27,918
Gemini Securitization Corp.
3.02%, 06/27/05		1,995		1,986
General Electric Capital Corp.
2.74%, 07/07/05		9,975		9,925
Georgetown Funding Co. LLC
2.81% - 3.05%, 05/03/05 - 06/16/05		43,892		43,832
Grampian Funding LLC
3.00% - 3.13%, 08/22/05 - 09/09/05		59,852		59,272
Jupiter Securization Corp.
2.99% - 3.02%, 05/19/05 - 06/03/05		80,537		80,377


SCHEDULES OF INVESTMENTS		73

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR SMALL GROWTH INDEX FUND

April 30, 2005


*Security*	*Principal*		*Value*
Kitty Hawk Funding Corp.
2.88%, 05/04/05	$	15,066	$	15,063
Moat Funding LLC
2.74%, 05/02/05		13,966		13,966
Mortgage Interest Networking Trust
2.82% - 3.05%, 05/02/05 - 05/24/05		25,936		25,933
Nordea North America Inc.
2.74%, 07/11/05		9,975		9,922
Park Granada LLC
3.04%, 05/25/05 - 05/31/05		12,968		12,941
Ranger Funding Co. LLC
2.89% - 3.02%, 05/04/05 - 05/27/05		32,251		32,218
Santander Central Hispano
2.75%, 07/08/05		24,938		24,811
Scaldis Capital LLC
2.75% - 2.99%, 05/16/05 - 07/08/05		58,860		58,763
Societe Generale
2.75% - 2.79%, 05/02/05 - 05/03/05		68,830		68,826
Sydney Capital Corp.
2.81%, 05/04/05		6,584		6,583
Tulip Funding Corp.
2.80% - 3.02%, 05/03/05 - 07/01/05		54,865		54,840
UBS Finance (Delaware)
2.79%, 05/04/05		15,961		15,958
Windmill Funding Corp.
2.80%, 05/04/05		6,165		6,164

				1,185,346

FLOATING RATE NOTES³ – 6.33%
Allstate Life Global Funding II
2.91%, 03/08/06⁴		9,177		9,178
American Express Centurion Bank
2.98% - 3.04%, 10/26/05 - 01/24/06		69,828		69,837
Bank of Nova Scotia
2.80% - 2.94%, 09/26/05 - 01/03/06		12,968		12,966
Beta Finance Inc.
2.81% - 3.16%, 05/04/05 - 04/25/06⁴		76,611		76,615
BMW US Capital LLC
2.92%, 04/18/06⁴		19,951		19,951
Canadian Imperial Bank of Commerce
2.86% - 3.00%, 09/13/05 - 12/14/05		67,833		67,824
CC USA Inc.
2.81% - 3.12%, 05/04/05 - 03/23/06⁴		51,872		51,870
Commodore CDO Ltd.
3.08%, 12/12/05		4,988		4,988
Den Danske Bank NY
2.85% - 2.96%, 08/12/05 - 10/17/05		59,852		59,846
DEPFA Bank PLC
2.99%, 03/15/06		19,951		19,951
Dorada Finance Inc.
3.00% - 3.12%, 07/29/05 - 03/27/06⁴		43,293		43,295
Fairway Finance LLC
2.94%, 06/20/05		9,975		9,975
Fifth Third Bancorp
2.98%, 02/23/06⁴		39,902		39,902
Five Finance Inc.
3.01%, 02/27/06⁴		9,975		9,976
General Electric Capital Corp.
3.01%, 05/09/06		8,978		8,989
General Electric Commercial Equipment Financing LLC
2.95%, 11/20/05		5,740		5,740
Greenwich Capital Holdings Inc.
2.83%, 09/02/05		12,968		12,968
Hartford Life Global Funding Trust
2.94%, 04/15/06		19,951		19,951
HBOS Treasury Services PLC
2.87% - 3.08%, 01/10/06 - 04/24/06		59,852		59,853
K2 USA LLC
2.87% - 3.11%, 06/10/05 - 02/15/06⁴		89,779		89,780


74		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR SMALL GROWTH INDEX FUND

April 30, 2005


*Security*	*Principal*		*Value*
Leafs LLC
2.99%, 01/20/06 - 02/21/06⁴	$	20,948	$	20,948
Links Finance LLC
2.92% - 3.15%, 11/16/05 - 02/06/06⁴		41,897		41,912
Lothian Mortgages PLC
3.01%, 01/24/06⁴		29,926		29,926
Marshall & Ilsley Corp.
3.09%, 02/20/06		19,951		19,970
MetLife Global Funding I
2.86%, 05/05/06⁴		29,926		29,926
National City Bank (Ohio)
2.84% - 2.95%, 06/10/05 - 08/09/05		49,877		49,875
Nationwide Building Society
2.89% - 3.12%, 01/13/06 - 04/28/06⁴		73,818		73,831
Norddeutsche Landesbank
3.11%, 07/27/05		19,951		19,949
Northern Rock PLC
2.88% - 2.99%, 10/25/05 - 02/03/06⁴		59,852		59,853
Permanent Financing PLC
2.87% - 2.89%, 06/10/05 - 03/10/06		70,825		70,825
Royal Bank of Scotland
2.79% - 2.91%, 06/20/05 - 04/05/06		27,083		27,075
Sedna Finance Inc.
2.92%, 01/10/06 - 01/17/06⁴		10,973		10,970
Sigma Finance Inc.
2.82% - 3.16%, 08/17/05 - 01/09/06⁴		101,749		101,751
Societe Generale
2.99%, 03/30/06		16,958		16,953
SunTrust Bank
3.17%, 04/28/06		29,926		29,926
Tango Finance Corp.
2.74% - 2.99%, 05/17/05 - 09/15/05⁴		54,067		54,065

*Security*	Shares or Principal		*Value*
Wachovia Asset Securitization Inc.
3.00% - 3.01%, 05/25/05	$	54,345	$	54,345
Wells Fargo & Co.
2.92%, 05/15/06⁴		9,975		9,977
WhistleJacket Capital LLC
2.86% - 2.97%, 06/15/05 - 01/17/06⁴		69,828		69,823
White Pine Finance LLC
2.80% - 3.09%, 05/20/05 - 01/13/06⁴		85,589		85,584
Windmill Funding Corp.
2.78%, 05/03/05		13,966		13,964
Winston Funding Ltd.
3.22%, 07/23/05⁴		14,245		14,245
World Savings Bank
2.86%, 09/09/05		6,983		6,983

				1,606,131

MONEY MARKET FUNDS – 0.45%
Barclays Global Investors Funds Government Money Market Fund, Institutional Shares^3,5		79,803		79,803
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares⁵		23,548		23,548
BlackRock Temp Cash Money Market Fund³		2,890		2,890
Short-Term Investment Co.- Prime Money Market Portfolio, Institutional Shares³		8,083		8,083

				114,324

REPURCHASE AGREEMENTS³ – 3.59%
Bank of America N.A. Repurchase Agreement, dated 4/29/05, due 5/2/05, with a maturity value of $498,893 and an effective yield of 2.97%.⁶	$	498,770		498,770
Goldman Sachs & Co. Repurchase Agreements, dated 4/29/05, due 5/2/05, with a total maturity value of $242,596 and effective yields of 2.96% - 3.00%.⁶		242,536		242,536


SCHEDULES OF INVESTMENTS		75

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR SMALL GROWTH INDEX FUND

April 30, 2005


*Security*	*Principal*		*Value*
Merrill Lynch Government Securities Inc. Repurchase Agreements, dated 4/29/05, due 5/2/05, with a total maturity value of $169,393 and effective yields of 2.96% - 3.00%.⁶	$	169,351	$	169,351

				910,657

TIME DEPOSITS³ – 2.35%
American Express Centurion Bank
3.00%, 05/25/05		49,877		49,877
Banco Bilbao Vizcaya Argentaria SA
3.03% - 3.18%, 06/27/05 - 09/14/05		28,929		28,929
BNP Paribas (New York)
2.78% - 3.03%, 07/11/05 - 08/23/05		27,931		27,931
Credit Suisse First Boston
2.75% - 2.81%, 05/03/05		25,936		25,936
Dexia Credit Local SA
2.81% - 3.01%, 05/04/05 - 06/21/05		38,904		38,905
First Tennessee Bank
3.00% - 3.04%, 06/14/05 - 06/27/05		34,914		34,914
HBOS Treasury Services PLC
3.39%, 12/14/05		11,970		11,970
Natexis Banques
2.98%, 08/18/05		19,951		19,951
Norddeutsche Landesbank
2.11%, 06/07/05		19,951		19,950
Societe Generale
2.81%, 05/03/05		13,966		13,966
SunTrust Bank
2.68%, 05/03/05		19,951		19,951
Svenska Handelsbanken AB
3.00%, 06/20/05		9,975		9,975
Toronto-Dominion Bank
1.77% - 3.18%, 05/10/05 - 11/09/05		60,850		60,848
UBS AG
2.67% - 3.40%, 11/09/05 - 12/15/05		15,961		15,961
Washington Mutual Bank
2.81% - 3.15%, 05/02/05 - 07/28/05		128,683		128,682
Wells Fargo Bank N.A.
3.04%, 06/29/05		59,852		59,852
World Savings Bank
2.75%, 05/03/05		27,931		27,931

				595,529

U.S. GOVERNMENT AGENCY NOTES³ – 0.15%
Federal Home Loan Mortgage Corp.
2.06%, 05/31/05		9,946		9,930
Federal National Mortgage Association
2.33%, 07/22/05		29,926		29,770

				39,700

TOTAL SHORT-TERM INVESTMENTS (Cost: $4,451,687)				4,451,687

TOTAL INVESTMENTS IN SECURITIES – 117.94% (Cost: $33,062,479)				29,933,849
Other Assets, Less Liabilities – (17.94%)				(4,553,823	)

NET ASSETS – 100.00%			$	25,380,026

¹	Non-income earning security.

²	All or a portion of this security represents a security on loan. See Note 5.

³	All or a portion of this security (these securities) represent(s) an investment of securities lending collateral. See Note 5.

⁴	All or a portion of this security is 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	The Fund’s investment adviser is an affiliate of the issuer. See Note 2.

⁶	Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 3.12% to 7.13% and maturity dates ranging from 5/25/05 to 8/1/42.

See notes to financial statements.


76		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MORNINGSTAR SMALL VALUE INDEX FUND

April 30, 2005


*Security*	*Shares*	*Value*
COMMON STOCKS – 99.89%

AEROSPACE & DEFENSE – 0.28%
GenCorp Inc.	5,123	$	97,388

			97,388

AGRICULTURE – 1.20%
Loews Corp. - Carolina Group	7,449		234,643
Universal Corp.	3,047		139,096
Vector Group Ltd.¹	2,328		36,619

			410,358

AIRLINES – 1.21%
AMR Corp.^1,2	17,697		185,288
Continental Airlines Inc. Class B^1,2	7,820		92,589
Delta Air Lines Inc.^1,2	15,506		51,015
ExpressJet Holdings Inc.²	4,473		39,720
Northwest Airlines Corp.¹^,²	9,258		47,956

			416,568

APPAREL – 1.16%
Kellwood Co.	3,234		82,596
Oxford Industries Inc.	1,653		60,533
Phillips-Van Heusen Corp.	2,977		77,045
Russell Corp.	3,347		58,606
Tommy Hilfiger Corp.²	10,986		120,187

			398,967

AUTO MANUFACTURERS – 0.27%
Wabash National Corp.	3,631		92,590

			92,590

AUTO PARTS & EQUIPMENT – 2.63%
American Axle & Manufacturing Holdings Inc.	5,202		103,832
ArvinMeritor Inc.¹	8,165		97,000
Bandag Inc.	762		33,101
Cooper Tire & Rubber Co.	8,935		155,916
Goodyear Tire & Rubber Co. (The)^1,2	20,822		247,157
Modine Manufacturing Co.	3,617		97,948
Superior Industries International Inc.¹	2,549		51,821
Tenneco Automotive Inc.²	4,940		63,380
Visteon Corp.	15,245		53,357

			903,512

BANKS – 8.76%
AMCORE Financial Inc.	2,697		69,475
Central Pacific Financial Corp.	3,296		107,450
Chemical Financial Corp.	2,739		82,060
Chittenden Corp.	5,520		138,607
Citizens Banking Corp.	4,422		118,554
City Holding Co.	1,955		62,873
Community Bank System Inc.	3,600		79,668
Corus Bankshares Inc.	1,802		87,992
First Charter Corp.	3,505		75,848
First Citizens BancShares Inc. Class A	604		77,626
First Commonwealth Financial Corp.	8,173		107,557
First Financial Bancorp	5,150		89,044
First Financial Bankshares Inc.	1,565		64,009
First Merchants Corp.	2,180		55,416
First Midwest Bancorp Inc.	5,546		181,132
FNB Corp. (Pennsylvania)¹	6,095		115,500
Glacier Bancorp Inc.	2,880		77,098
Gold Bancorp Inc.	4,717		65,236
Hancock Holding Co.	3,417		101,895
Irwin Financial Corp.¹	2,080		41,746
National Penn Bancshares Inc.¹	3,687		82,663
NBT Bancorp Inc.	3,836		79,712
Old National Bancorp¹	8,246		157,416
Provident Bankshares Corp.	3,951		115,685
Republic Bancorp Inc.¹	8,286		105,066
S&T Bancorp Inc.¹	2,782		94,032
Sterling Bancorp	1,988		45,744
Susquehanna Bancshares Inc.	5,554		116,801
TrustCo Bank Corp. NY¹	8,744		96,271
UMB Financial Corp.	1,779		96,297
United Bancshares Inc.	4,913		150,436
WesBanco Inc.	2,422		65,079

			3,003,988

BIOTECHNOLOGY – 0.42%
Applera Corp. - Celera Genomics Group²	8,592		79,046
Incyte Corp.²	9,711		63,510

			142,556

BUILDING MATERIALS – 1.73%
Lennox International Inc.	6,090		119,060
Texas Industries Inc.	2,553		117,898
USG Corp.^1,2	3,855		161,871
York International Corp.¹	4,931		192,950

			591,779


SCHEDULES OF INVESTMENTS		77

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR SMALL VALUE INDEX FUND

April 30, 2005


*Security*	*Shares*	*Value*
CHEMICALS – 5.56%
Albemarle Corp.	4,428	$	162,109
Crompton Corp.	13,642		191,670
Ferro Corp.	4,930		89,332
FMC Corp.²	4,090		200,410
Fuller (H.B.) Co.	3,366		102,057
Georgia Gulf Corp.	3,948		145,721
Grace (W.R.) & Co.²	6,465		60,642
Great Lakes Chemical Corp.	6,048		187,730
Hercules Inc.²	12,009		158,879
MacDermid Inc.	2,983		90,534
NL Industries Inc.²	879		14,134
OM Group Inc.²	3,335		73,170
PolyOne Corp.²	10,782		83,237
Schulman (A.) Inc.	3,539		59,101
Sensient Technologies Corp.	5,166		103,372
Spartech Corp.¹	3,776		73,519
Terra Industries Inc.^1,2	10,941		75,493
Westlake Chemical Corp.	1,418		37,223

			1,908,333

COMMERCIAL SERVICES – 2.02%
Banta Corp.	2,934		122,172
Central Parking Corp.	2,649		43,311
Consolidated Graphics Inc.²	1,415		64,949
Dollar Thrifty Automotive Group Inc.²	2,758		93,358
Quanta Services Inc.²	11,888		94,866
Stewart Enterprises Inc. Class A	11,295		60,993
United Rentals Inc.²	7,873		144,784
Viad Corp.	2,605		67,079

			691,512

COMPUTERS – 1.20%
Imation Corp.	4,250		148,198
Maxtor Corp.²	29,480		142,978
MTS Systems Corp.	2,350		68,056
Quantum Corp.²	21,229		50,950

			410,182

COSMETICS & PERSONAL CARE – 0.15%
Revlon Inc. Class A²	17,456		51,321

			51,321

DISTRIBUTION & WHOLESALE – 0.85%
Handleman Co.	2,708		46,984
Owens & Minor Inc.	4,703		136,434
Watsco Inc.	2,467		107,043

			290,461

DIVERSIFIED FINANCIAL SERVICES – 0.17%
W.P. Stewart & Co. Ltd.¹	2,603		57,474

			57,474

ELECTRIC – 6.50%
ALLETE Inc.	3,158		131,594
Aquila Inc.²	27,734		95,405
Avista Corp.	5,697		95,653
Black Hills Corp.	3,881		133,041
Calpine Corp.^1,2	53,096		95,042
CH Energy Group Inc.	1,856		79,158
Cleco Corp.	5,908		120,641
CMS Energy Corp.²	25,070		323,904
Duquesne Light Holdings Inc.¹	9,137		160,720
El Paso Electric Co.²	5,600		109,256
Empire District Electric Co. (The)	3,002		66,284
IDACORP Inc.	4,985		134,495
MGE Energy Inc.	2,385		79,468
Otter Tail Corp.	3,022		74,160
PNM Resources Inc.	6,547		181,025
Sierra Pacific Resources Corp.^1,2	13,996		151,437
UIL Holdings Corp.	1,554		79,782
UniSource Energy Corp.	3,791		118,469

			2,229,534

ELECTRICAL COMPONENTS & EQUIPMENT – 0.13%
GrafTech International Ltd.²	11,458		43,655

			43,655

ELECTRONICS – 0.33%
Cubic Corp.¹	1,877		33,016
Woodward Governor Co.	1,131		79,803

			112,819

ENGINEERING & CONSTRUCTION – 1.48%
Granite Construction Inc.	3,805		85,917
Shaw Group Inc. (The)²	9,149		165,322
URS Corp.²	4,654		143,111
Washington Group International Inc.²	2,736		113,352

			507,702


78		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR SMALL VALUE INDEX FUND

April 30, 2005


*Security*	*Shares*	*Value*
ENTERTAINMENT – 0.14%
Magna Entertainment Corp. Class A^1,2	2,684	$	14,064
Six Flags Inc.²	8,703		33,942

			48,006

FOOD – 1.93%
Chiquita Brands International Inc.	4,562		114,278
Corn Products International Inc.	8,803		193,842
Fresh Del Monte Produce Inc.	2,949		85,226
Lance Inc.	3,421		56,378
Ruddick Corp.	4,113		92,378
Sanderson Farms Inc.	2,334		84,584
Weis Markets Inc.	902		34,186

			660,872

FOREST PRODUCTS & PAPER – 1.44%
Glatfelter Co.	4,506		53,757
Longview Fibre Co.	6,009		111,046
Potlatch Corp.	3,520		166,250
Rock-Tenn Co. Class A	3,655		37,098
Schweitzer-Mauduit International Inc.	1,749		51,106
Wausau-Mosinee Paper Corp.	5,707		75,732

			494,989

GAS – 5.18%
Atmos Energy Corp.	9,096		239,225
Laclede Group Inc. (The)	2,319		63,471
New Jersey Resources Corp.	3,307		143,392
Nicor Inc.	5,248		194,019
Northwest Natural Gas Co.¹	3,212		114,026
Peoples Energy Corp.	4,488		177,725
Piedmont Natural Gas Co.	8,571		196,704
South Jersey Industries Inc.	1,624		88,264
Southern Union Co.²	11,762		281,582
Southwest Gas Corp.	4,154		101,648
WGL Holdings Inc.¹	5,806		175,980

			1,776,036

HAND & MACHINE TOOLS – 0.78%
Kennametal Inc.	4,341		196,647
Regal-Beloit Corp.	2,703		71,494

			268,141

HEALTH CARE - PRODUCTS – 0.12%
Datascope Corp.	1,461		41,960

			41,960

HEALTH CARE - SERVICES – 0.71%
Beverly Enterprises Inc.²	11,909		139,573
Kindred Healthcare Inc.^1,2	3,136		103,174

			242,747

HOLDING COMPANIES - DIVERSIFIED – 0.43%
Walter Industries Inc.	4,289		147,113

			147,113

HOME BUILDERS – 1.02%
Beazer Homes USA Inc.¹	4,542		207,115
Champion Enterprises Inc.²	8,535		80,570
M/I Homes Inc.	1,345		61,467

			349,152

HOME FURNISHINGS – 0.90%
Furniture Brands International Inc.	6,065		117,540
Kimball International Inc. Class B	2,881		32,815
La-Z-Boy Inc.¹	6,185		73,230
Maytag Corp.¹	8,647		83,789

			307,374

HOUSEHOLD PRODUCTS & WARES – 0.71%
Blyth Inc.	3,519		96,456
Russ Berrie & Co. Inc.	1,240		16,033
Tupperware Corp.¹	6,236		131,580

			244,069

INSURANCE – 6.57%
Alfa Corp.	4,355		60,012
Allmerica Financial Corp.²	6,333		212,599
AmerUs Group Co.¹	4,653		218,738
Argonaut Group Inc.²	3,255		64,026
Assured Guaranty Ltd.	5,881		112,092
Commerce Group Inc.	3,555		210,029
Delphi Financial Group Inc. Class A	3,236		134,359
FBL Financial Group Inc. Class A	1,466		38,409
Harleysville Group Inc.	1,580		32,848
Horace Mann Educators Corp.	5,030		82,391
Infinity Property & Casualty Corp.	2,410		78,205
LandAmerica Financial Group Inc.	2,004		99,398
Max Reinsurance Capital Ltd.	2,297		50,419
Odyssey Re Holdings Corp.¹	1,488		33,837
Ohio Casualty Corp.²	7,327		171,818
Phoenix Companies Inc.¹	10,765		121,967


SCHEDULES OF INVESTMENTS		79

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR SMALL VALUE INDEX FUND

April 30, 2005


*Security*	*Shares*	*Value*
Platinum Underwriters Holdings Ltd.¹	4,671	$	138,262
Presidential Life Corp.	2,530		36,710
Selective Insurance Group Inc.	3,323		146,710
Stewart Information Services Corp.	2,005		72,220
United Fire & Casualty Co.	1,605		54,377
Zenith National Insurance Corp.	1,448		83,274

			2,252,700

INTERNET – 0.74%
CMGI Inc.²	54,497		95,915
EarthLink Inc.²	17,296		158,777

			254,692

INVESTMENT COMPANIES – 0.19%
MCG Capital Corp.¹	4,257		65,686

			65,686

IRON & STEEL – 1.47%
AK Steel Holding Corp.²	12,145		88,051
Allegheny Technologies Inc.	9,241		206,998
Carpenter Technology Corp.	2,597		143,614
Schnitzer Steel Industries Inc. Class A	2,694		66,353

			505,016

LEISURE TIME – 0.35%
Arctic Cat Inc.	1,648		39,025
Callaway Golf Co.¹	7,656		82,532

			121,557

LODGING – 0.50%
La Quinta Corp.²	19,544		170,033

			170,033

MACHINERY – 1.03%
AGCO Corp.²	10,746		184,831
Albany International Corp. Class A	3,318		104,052
NACCO Industries Inc.	635		66,135

			355,018

MANUFACTURING – 2.17%
Acuity Brands Inc.	5,094		121,798
Barnes Group Inc.	2,042		58,708
Griffon Corp.²	3,123		59,930
Hexcel Corp.²	5,903		96,809
Jacuzzi Brands Inc.²	8,877		80,337
Lancaster Colony Corp.	3,374		140,223
Smith (A.O.) Corp.	2,285		65,123
Trinity Industries Inc.¹	5,181		120,976

			743,904

MEDIA – 1.58%
Charter Communications Inc. Class A^1,2	30,865		35,803
Insight Communications Co. Inc.²	5,982		67,058
Journal Communications Inc. Class A	3,177		48,926
Journal Register Co.²	4,936		78,088
Readers Digest Association Inc. (The)	10,303		175,151
Scholastic Corp.^1,2	3,301		115,040
World Wrestling Entertainment Inc.	2,189		23,400

			543,466

METAL FABRICATE & HARDWARE – 1.36%
Commercial Metals Co.	7,015		178,953
Mueller Industries Inc.	3,725		96,478
Quanex Corp.	2,974		150,068
Valmont Industries Inc.	1,822		42,380

			467,879

MINING – 0.75%
Compass Minerals International Inc.	3,632		87,713
Stillwater Mining Co.²	5,139		37,515
USEC Inc.	10,050		132,158

			257,386

OFFICE & BUSINESS EQUIPMENT – 0.35%
IKON Office Solutions Inc.	14,084		121,827

			121,827

OIL & GAS – 2.86%
Cabot Oil & Gas Corp.	5,900		173,696
Harvest Natural Resources Inc.²	4,238		45,728
Holly Corp.	2,889		99,006
Houston Exploration Co.²	3,366		171,464
KCS Energy Inc.^1,2	5,756		80,814
Stone Energy Corp.²	3,004		135,000
Swift Energy Co.²	3,288		86,573
Vintage Petroleum Inc.	6,479		187,178

			979,459

OIL & GAS SERVICES – 0.51%
Hanover Compressor Co.²	7,911		82,037
Veritas DGC Inc.²	3,693		94,541

			176,578


80		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR SMALL VALUE INDEX FUND

April 30, 2005


*Security*	*Shares*	*Value*
PACKAGING & CONTAINERS – 0.50%
Greif Inc. Class A	1,312	$	91,013
Silgan Holdings Inc.	1,321		80,819

			171,832

PHARMACEUTICALS – 0.53%
Abgenix Inc.²	9,188		64,040
Alpharma Inc. Class A	4,775		45,076
Medarex Inc.²	10,053		71,175

			180,291

REAL ESTATE INVESTMENT TRUSTS – 15.32%
Alexandria Real Estate Equities Inc.	2,318		159,525
American Financial Realty Trust¹	13,154		201,651
American Home Mortgage Investment Corp.	4,274		139,760
AMLI Residential Properties Trust	2,983		83,285
Anthracite Capital Inc.	6,258		69,526
Bedford Property Investors Inc.	1,790		38,109
Brandywine Realty Trust	6,391		180,865
CarrAmerica Realty Corp.	6,470		213,769
Colonial Properties Trust	4,492		173,616
Commercial Net Lease Realty Inc.	6,103		115,835
Crescent Real Estate Equities Co.	11,854		199,147
CRT Properties Inc.	3,673		84,810
EastGroup Properties Inc.	2,475		92,813
Equity One Inc.	4,275		89,519
FelCor Lodging Trust Inc.^1,2	5,499		67,308
First Industrial Realty Trust Inc.¹	4,917		187,829
Gables Residential Trust¹	3,503		128,385
Getty Realty Corp.	2,273		57,348
Glenborough Realty Trust Inc.¹	4,227		86,823
Healthcare Realty Trust Inc.	5,602		216,293
Highwoods Properties Inc.	6,394		179,863
Home Properties Inc.	3,968		166,061
Impac Mortgage Holdings Inc.¹	8,876		162,608
Kilroy Realty Corp.	3,396		148,167
Lexington Corporate Properties Trust	5,777		132,755
MFA Mortgage Investments Inc.	9,683		69,524
Mid-America Apartment Communities Inc.	2,399		91,714
National Health Investors Inc.	2,726		71,421
Nationwide Health Properties Inc.	7,932		169,983
Newcastle Investment Corp.	4,867		143,528
Novastar Financial Inc.¹	3,169		113,133
Omega Healthcare Investors Inc.	6,179		69,328
Parkway Properties Inc.	1,660		75,696
Post Properties Inc.	4,751		154,788
Prentiss Properties Trust¹	4,598		152,746
PS Business Parks Inc.	1,927		77,774
RAIT Investment Trust	2,968		80,522
Redwood Trust Inc.	2,749		137,780
Saul Centers Inc.	1,246		41,741
Senior Housing Properties Trust	7,159		123,851
Sovran Self Storage Inc.	1,857		79,387
Sun Communities Inc.	2,234		77,855
Washington Real Estate Investment Trust¹	4,991		148,782

			5,255,223

RETAIL – 6.04%
Asbury Automotive Group Inc.²	1,780		24,457
Blockbuster Inc.	13,051		129,205
Bob Evans Farms Inc.	4,154		84,742
Brown Shoe Co. Inc.	2,014		62,233
Buckle Inc. (The)	968		33,299
Burlington Coat Factory Warehouse Corp.	2,331		64,219
Casey’s General Store Inc.	5,522		93,211
Cato Corp. Class A	2,368		60,858
Charming Shoppes Inc.²	12,548		93,357
Dillard’s Inc. Class A	8,249		191,954
Domino’s Pizza Inc.	2,848		51,720
Group 1 Automotive Inc.²	2,362		59,404
Jack in the Box Inc.²	4,358		159,328
Jo-Ann Stores Inc.²	2,504		63,351
Landry’s Restaurants Inc.¹	2,705		70,330
Lone Star Steakhouse & Saloon Inc.	2,121		60,130
Longs Drug Stores Corp.¹	3,593		130,606
Papa John’s International Inc.²	1,419		48,643
Payless ShoeSource Inc.²	7,998		109,253
Pep Boys-Manny, Moe & Jack Inc.¹	6,807		96,523
Ryan’s Restaurant Group Inc.²	4,898		62,107
Sonic Automotive Inc.	3,442		67,704
Talbots Inc. (The)	2,773		70,850


SCHEDULES OF INVESTMENTS		81

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR SMALL VALUE INDEX FUND

April 30, 2005


*Security*	*Shares*		*Value*
TBC Corp.²		2,441	$	63,857
Triarc Companies Inc.		1,774		24,570
Triarc Companies Inc. Class B		2,241		28,774
United Auto Group Inc.		2,363		66,967

				2,071,652

SAVINGS & LOANS – 2.36%
Anchor BanCorp Wisconsin Inc.		2,543		67,186
Commercial Federal Corp.		4,751		124,049
Dime Community Bancshares		3,968		58,885
Downey Financial Corp.		2,485		160,854
FirstFed Financial Corp.²		1,932		97,817
Flagstar Bancorp Inc.¹		3,641		69,325
MAF Bancorp Inc.		3,892		157,159
PFF Bancorp Inc.		2,647		73,904

				809,179

SEMICONDUCTORS – 0.21%
Axcelis Technologies Inc.^1,2		11,759		73,023

				73,023

SOFTWARE – 0.63%
Sybase Inc.²		11,421		216,200

				216,200

TELECOMMUNICATIONS – 1.81%
Black Box Corp.		2,066		67,186
CIENA Corp.²		68,052		156,520
Cincinnati Bell Inc.²		28,862		115,448
IDT Corp.²		2,196		29,558
IDT Corp. Class B²		5,217		73,351
3Com Corp.²		46,995		148,034
Wireless Facilities Inc.²		5,544		29,328

				619,425

TRANSPORTATION – 1.82%
Alexander & Baldwin Inc.		5,199		211,755
Arkansas Best Corp.		2,641		83,271
General Maritime Corp.^1,2		4,236		185,749
USF Corp.¹		3,342		142,469

				623,244

TRUCKING & LEASING – 0.64%
AMERCO		1,054		48,421
GATX Corp.		5,195		169,980

				218,401

*Security*	Shares or Principal		*Value*
WATER – 0.19%
California Water Service Group		2,002	$	66,486

				66,486

TOTAL COMMON STOCKS (Cost: $36,976,061)				34,261,315

SHORT-TERM INVESTMENTS – 12.27%

COMMERCIAL PAPER³ – 3.28%
Alpine Securitization Corp.
2.80%, 05/04/05	$	54,106		54,098
Amstel Funding Corp.
2.95%, 08/19/05		7,864		7,793
Amsterdam Funding Corp.
2.80% - 3.02%, 05/04/05 - 05/27/05		21,378		21,356
ANZ National Bank Ltd.
2.94%, 08/15/05		9,459		9,378
Blue Ridge Asset Funding Corp.
3.02%, 06/02/05		28,377		28,304
Bryant Park Funding LLC
2.75%, 05/03/05		3,784		3,783
Cancara Asset Securitisation LLC
2.80% - 2.97%, 05/03/05 - 05/23/05		62,742		62,727
Cantabric Finance LLC
3.04% - 3.12%, 06/28/05 - 07/25/05		23,648		23,493
Chariot Funding LLC
2.99%, 05/20/05		4,498		4,491
Charta LLC
2.99%, 06/16/05 - 06/21/05		39,728		39,572
Chesham Finance LLC
2.89% - 3.01%, 05/10/05 - 06/21/05		67,160		67,078
Corporate Asset Funding
2.75% - 2.99%, 05/05/05 - 06/16/05		34,999		34,915
CRC Funding LLC
2.95% - 3.00%, 05/02/05 - 06/29/05		33,107		33,054


82		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR SMALL VALUE INDEX FUND

April 30, 2005


*Security*	*Principal*		*Value*
DEPFA Bank PLC
2.28%, 05/03/05	$	9,459	$	9,459
Deutsche Bank Financial LLC
2.80%, 05/03/05		56,755		56,751
Edison Asset Securitization
2.26% - 3.12%, 05/03/05 - 09/06/05		64,322		64,162
Fairway Finance LLC
3.15%, 09/15/05		16,829		16,629
Falcon Asset Securitization Corp.
2.79% - 3.02%, 05/03/05 - 06/01/05		37,902		37,857
Ford Credit Auto Receivables
2.74%, 05/04/05		9,270		9,269
Fortis Funding LLC
2.35%, 05/09/05		26,486		26,474
Gemini Securitization Corp.
3.02%, 06/27/05		1,892		1,883
General Electric Capital Corp.
2.74%, 07/07/05		9,459		9,412
Georgetown Funding Co. LLC
2.81% - 3.05%, 05/03/05 - 06/16/05		41,620		41,563
Grampian Funding LLC
3.00% - 3.13%, 08/22/05 - 09/09/05		56,755		56,204
Jupiter Securization Corp.
2.99% - 3.02%, 05/19/05 - 06/03/05		76,369		76,218
Kitty Hawk Funding Corp.
2.88%, 05/04/05		14,286		14,284
Moat Funding LLC
2.74%, 05/02/05		13,243		13,243
Mortgage Interest Networking Trust
2.82% - 3.05%, 05/02/05 - 05/24/05		24,594		24,591
Nordea North America Inc.
2.74%, 07/11/05		9,459		9,409
Park Granada LLC
3.04%, 05/25/05 - 05/31/05		12,297		12,272
Ranger Funding Co. LLC
2.89% - 3.02%, 05/04/05 - 05/27/05		30,582		30,550
Santander Central Hispano
2.75%, 07/08/05		23,648		23,528
Scaldis Capital LLC
2.75% - 2.99%, 05/16/05 - 07/08/05		55,814		55,723
Societe Generale
2.75% - 2.79%, 05/02/05 - 05/03/05		65,268		65,264
Sydney Capital Corp.
2.81%, 05/04/05		6,243		6,242
Tulip Funding Corp.
2.80% - 3.02%, 05/03/05 - 07/01/05		52,025		52,003
UBS Finance (Delaware)
2.79%, 05/04/05		15,135		15,132
Windmill Funding Corp.
2.80%, 05/04/05		5,846		5,845

				1,124,009

FLOATING RATE NOTES³ – 4.44%
Allstate Life Global Funding II
2.91%, 03/08/06⁴		8,702		8,703
American Express Centurion Bank
2.98% - 3.04%, 10/26/05 - 01/24/06		66,214		66,223
Bank of Nova Scotia
2.80% - 2.94%, 09/26/05 - 01/03/06		12,297		12,295
Beta Finance Inc.
2.81% - 3.16%, 05/04/05 - 04/25/06⁴		72,646		72,650
BMW US Capital LLC
2.92%, 04/18/06⁴		18,918		18,918
Canadian Imperial Bank of Commerce
2.86% - 3.00%, 09/13/05 - 12/14/05		64,322		64,313
CC USA Inc.
2.81% - 3.12%, 05/04/05 - 03/23/06⁴		49,188		49,186


SCHEDULES OF INVESTMENTS		83

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR SMALL VALUE INDEX FUND

April 30, 2005


*Security*	*Principal*		*Value*
Commodore CDO Ltd.
3.08%, 12/12/05	$	4,730	$	4,730
Den Danske Bank NY
2.85% - 2.96%, 08/12/05 - 10/17/05		56,755		56,750
DEPFA Bank PLC
2.99%, 03/15/06		18,918		18,918
Dorada Finance Inc.
3.00% - 3.12%, 07/29/05 - 03/27/06⁴		41,053		41,055
Fairway Finance LLC
2.94%, 06/20/05		9,459		9,459
Fifth Third Bancorp
2.98%, 02/23/06⁴		37,837		37,837
Five Finance Inc.
3.01%, 02/27/06⁴		9,459		9,460
General Electric Capital Corp.
3.01%, 05/09/06		8,513		8,524
General Electric Commercial Equipment Financing LLC
2.95%, 11/20/05		5,443		5,443
Greenwich Capital Holdings Inc.
2.83%, 09/02/05		12,297		12,297
Hartford Life Global Funding Trust
2.94%, 04/15/06		18,918		18,918
HBOS Treasury Services PLC
2.87% - 3.08%, 01/10/06 - 04/24/06		56,755		56,754
K2 USA LLC
2.87% - 3.11%, 06/10/05 - 02/15/06⁴		85,132		85,135
Leafs LLC
2.99%, 01/20/06 - 02/21/06⁴		19,864		19,864
Links Finance LLC
2.92% - 3.15%, 11/16/05 - 02/06/06⁴		39,728		39,743
Lothian Mortgages PLC
3.01%, 01/24/06⁴		28,377		28,377
Marshall & Ilsley Corp.
3.09%, 02/20/06		18,918		18,937
MetLife Global Funding I
2.86%, 05/05/06⁴		28,377		28,377
National City Bank (Ohio)
2.84% - 2.95%, 06/10/05 - 08/09/05		47,296		47,294
Nationwide Building Society
2.89% - 3.12%, 01/13/06 - 04/28/06⁴		69,998		70,010
Norddeutsche Landesbank
3.11%, 07/27/05		18,918		18,917
Northern Rock PLC
2.88% - 2.99%, 10/25/05 - 02/03/06⁴		56,755		56,755
Permanent Financing PLC
2.87% - 2.89%, 06/10/05 - 03/10/06		67,160		67,160
Royal Bank of Scotland
2.79% - 2.91%, 06/20/05 - 04/05/06		25,682		25,673
Sedna Finance Inc.
2.92%, 01/10/06 - 01/17/06⁴		10,405		10,404
Sigma Finance Inc.
2.82% - 3.16%, 08/17/05 - 01/09/06⁴		96,483		96,481
Societe Generale
2.99%, 03/30/06		16,081		16,076
SunTrust Bank
3.17%, 04/28/06		28,377		28,377
Tango Finance Corp.
2.74% - 2.99%, 05/17/05 - 09/15/05⁴		51,269		51,267
Wachovia Asset Securitization Inc.
3.00% - 3.01%, 05/25/05		51,532		51,533
Wells Fargo & Co.
2.92%, 05/15/06⁴		9,459		9,460
WhistleJacket Capital LLC
2.86% - 2.97%, 06/15/05 - 01/17/06⁴		66,214		66,210
White Pine Finance LLC
2.80% - 3.09%, 05/20/05 - 01/13/06⁴		81,160		81,156


84		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR SMALL VALUE INDEX FUND

April 30, 2005


*Security*	Shares or Principal		*Value*
Windmill Funding Corp.
2.78%, 05/03/05	$	13,243	$	13,242
Winston Funding Ltd.
3.22%, 07/23/05⁴		13,508		13,508
World Savings Bank
2.86%, 09/09/05		6,621		6,621

				1,523,010

MONEY MARKET FUNDS – 0.28%
Barclays Global Investors Funds Government Money Market Fund, Institutional Shares^3,5		75,673		75,673
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares⁵		10,827		10,827
BlackRock Temp Cash Money Market Fund³		2,740		2,740
Short-Term Investment Co. - Prime Money Market Portfolio, Institutional Shares³		7,665		7,665

				96,905

REPURCHASE AGREEMENTS³ – 2.52%
Bank of America N.A. Repurchase Agreement, dated 4/29/05, due 5/2/05, with a maturity value of $473,075 and an effective yield of 2.97%.⁶	$	472,958		472,958
Goldman Sachs & Co. Repurchase Agreements, dated 4/29/05, due 5/2/05, with a total maturity value of $230,041 and effective yields of 2.96% - 3.00%.⁶		229,984		229,984
Merrill Lynch Government Securities Inc. Repurchase Agreements, dated 4/29/05, due 5/2/05, with a total maturity value of $160,628 and effective yields of 2.96% - 3.00%.⁶		160,588		160,588

				863,530

TIME DEPOSITS³ – 1.64%
American Express Centurion Bank
3.00%, 05/25/05		47,296		47,296

*Security*	*Principal*		*Value*
Banco Bilbao Vizcaya Argentaria SA
3.03% - 3.18%, 06/27/05 - 09/14/05	$	27,432	$	27,431
BNP Paribas (New York)
2.78% - 3.03%, 07/11/05 - 08/23/05		26,486		26,485
Credit Suisse First Boston
2.75% - 2.81%, 05/03/05		24,594		24,593
Dexia Credit Local SA
2.81% - 3.01%, 05/04/05 - 06/21/05		36,891		36,891
First Tennessee Bank
3.00% - 3.04%, 06/14/05 - 06/27/05		33,107		33,107
HBOS Treasury Services PLC
3.39%, 12/14/05		11,351		11,351
Natexis Banques
2.98%, 08/18/05		18,918		18,918
Norddeutsche Landesbank
2.11%, 06/07/05		18,918		18,918
Societe Generale
2.81%, 05/03/05		13,243		13,243
SunTrust Bank
2.68%, 05/03/05		18,918		18,918
Svenska Handelsbanken AB
3.00%, 06/20/05		9,459		9,459
Toronto-Dominion Bank
1.77% - 3.18%, 05/10/05 - 11/09/05		57,701		57,699
UBS AG
2.67% - 3.40%, 11/09/05 - 12/15/05		15,135		15,135
Washington Mutual Bank
2.81% - 3.15%, 05/02/05 - 07/28/05		122,023		122,023
Wells Fargo Bank N.A.
3.04%, 06/29/05		56,755		56,755
World Savings Bank
2.75%, 05/03/05		26,486		26,486

				564,708


SCHEDULES OF INVESTMENTS		85

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR SMALL VALUE INDEX FUND

April 30, 2005


*Security*	*Principal*		*Value*
U.S. GOVERNMENT AGENCY NOTES³ – 0.11%
Federal Home Loan Mortgage Corp.
2.06%, 05/31/05	$	9,431	$	9,416
Federal National Mortgage Association
2.33%, 07/22/05		28,377		28,229

				37,645

TOTAL SHORT-TERM INVESTMENTS (Cost: $4,209,807)				4,209,807

TOTAL INVESTMENTS IN SECURITIES – 112.16% (Cost: $41,185,868)				38,471,122
Other Assets, Less Liabilities – (12.16%)				(4,169,717	)

NET ASSETS – 100.00%			$	34,301,405

¹	All or a portion of this security represents a security on loan. See Note 5.

²	Non-income earning security.

³	All or a portion of this security (these securities) represent(s) an investment of securities lending collateral. See Note 5.

⁴	All or a portion of this security is 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	The Fund’s investment adviser is an affiliate of the issuer. See Note 2.

⁶	Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 3.12% to 7.13% and maturity dates ranging from 5/25/05 to 8/1/42.

See notes to financial statements.


86		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities

iSHARES^® TRUST

April 30, 2005


	*iShares Morningstar*
	Large Core Index Fund			Large Growth Index Fund			Large Value Index Fund			Mid Core Index Fund			Mid Growth Index Fund
ASSETS
Investments, at cost:
Unaffiliated issuers	$	56,995,430		$	54,966,189		$	58,428,102		$	68,820,127		$	34,470,507

Affiliated issuers^a	$	80,082		$	67,229		$	106,460		$	128,352		$	55,773

Investments in securities, at value (including securities on loan^b) (Note 1):
Unaffiliated issuers	$	56,832,167		$	52,499,062		$	59,083,110		$	67,512,773		$	33,561,958
Affiliated issuers^a		80,082			67,229			106,460			128,352			55,773
Receivables:
Dividends and interest		38,855			7,002			150,004			32,141			7,335

Total Assets		56,951,104			52,573,293			59,339,574			67,673,266			33,625,066

LIABILITIES
Payables:
Investment securities purchased		—			—			98,417			—			—
Collateral for securities on loan (Note 5)		3,662,929			3,077,875			3,907,227			4,608,497			2,328,155
Investment advisory fees (Note 2)		8,323			10,026			10,809			11,718			8,050

Total Liabilities		3,671,252			3,087,901			4,016,453			4,620,215			2,336,205

NET ASSETS	$	53,279,852		$	49,485,392		$	55,323,121		$	63,053,051		$	31,288,861

Net assets consist of:
Paid-in capital	$	53,502,129		$	52,885,133		$	54,536,837		$	64,457,831		$	32,280,538
Undistributed net investment income		40,376			—			161,725			43,655			3,438
Accumulated net realized loss		(99,390	)		(932,614	)		(30,449	)		(141,081	)		(86,566	)
Net unrealized appreciation (depreciation)		(163,263	)		(2,467,127	)		655,008			(1,307,354	)		(908,549	)

NET ASSETS	$	53,279,852		$	49,485,392		$	55,323,121		$	63,053,051		$	31,288,861

Shares outstanding		850,000			900,000			850,000			1,000,000			500,000

Net asset value per share	$	62.68		$	54.98		$	65.09		$	63.05		$	62.58

^a	The Funds’ investment adviser is an affiliate of the issuers. See Note 2.

^b	Securities on loan with market values of $3,565,551, $2,997,674, $3,810,954, $4,478,356 and $2,238,316, respectively. See Note 5.

See notes to financial statements.


FINANCIAL STATEMENTS		87

Statements of Assets and Liabilities (Continued)

iSHARES^® TRUST

April 30, 2005


	*iShares Morningstar*
	Mid Value Index Fund			Small Core Index Fund			Small Growth Index Fund			Small Value Index Fund
ASSETS
Investments, at cost:
Unaffiliated issuers	$	35,584,616		$	45,951,033		$	32,959,128		$	41,099,368

Affiliated issuers^a	$	93,625		$	127,538		$	103,351		$	86,500

Investments in securities, at value (including securities on loan^b) (Note 1):
Unaffiliated issuers	$	35,946,314		$	42,853,895		$	29,830,498		$	38,384,622
Affiliated issuers^a		93,625			127,538			103,351			86,500
Receivables:
Investment securities sold		67,728			—			—			—
Dividends and interest		35,320			13,571			2,471			37,460

Total Assets		36,142,987			42,995,004			29,936,320			38,508,582

LIABILITIES
Payables:
Investment securities purchased		—			—			121,668			—
Collateral for securities on loan (Note 5)		2,718,210			5,666,613			4,428,139			4,198,980
Investment advisory fees (Note 2)		8,016			7,941			6,487			8,197

Total Liabilities		2,726,226			5,674,554			4,556,294			4,207,177

NET ASSETS	$	33,416,761		$	37,320,450		$	25,380,026		$	34,301,405

Net assets consist of:
Paid-in capital	$	32,988,117		$	40,471,470		$	28,571,829		$	37,054,567
Undistributed net investment income		84,702			3,824			—			45,074
Accumulated net realized loss		(17,756	)		(57,706	)		(63,173	)		(83,490	)
Net unrealized appreciation (depreciation)		361,698			(3,097,138	)		(3,128,630	)		(2,714,746	)

NET ASSETS	$	33,416,761		$	37,320,450		$	25,380,026		$	34,301,405

Shares outstanding		500,000			600,000			450,000			550,000

Net asset value per share	$	66.83		$	62.20		$	56.40		$	62.37

^a	The Funds’ investment adviser is an affiliate of the issuers. See Note 2.

^b	Securities on loan with market values of $2,643,130, $5,481,814, $4,273,693 and $3,949,875, respectively. See Note 5.

See notes to financial statements.


88		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations

iSHARES^® TRUST

Period Ended April 30, 2005^a


	*iShares Morningstar*
	Large Core Index Fund			Large Growth Index Fund			Large Value Index Fund			Mid Core Index Fund			Mid Growth Index Fund
NET INVESTMENT INCOME
Dividends^b	$	434,683		$	437,066		$	889,163		$	351,490		$	69,790
Interest from affiliated issuers^c		485			360			607			500			168
Securities lending income^d		1,190			990			1,004			1,914			4,229

Total investment income		436,358			438,416			890,774			353,904			74,187

EXPENSES (Note 2)
Investment advisory fees		57,122			63,800			71,808			64,589			57,063

Total expenses		57,122			63,800			71,808			64,589			57,063

Net investment income		379,236			374,616			818,966			289,315			17,124

NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments		(104,759	)		(932,614	)		(37,189	)		(152,545	)		(93,919	)
In-kind redemptions		985,909			—			960,289			1,251,180			1,575,766

Net realized gain (loss)		881,150			(932,614	)		923,100			1,098,635			1,481,847

Net change in unrealized appreciation (depreciation)		(163,263	)		(2,467,127	)		655,008			(1,307,354	)		(908,549	)

Net realized and unrealized gain (loss)		717,887			(3,399,741	)		1,578,108			(208,719	)		573,298

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	1,097,123		$	(3,025,125	)	$	2,397,074		$	80,596		$	590,422

^a	For the period from June 28, 2004 (commencement of operations) to April 30, 2005.

^b	Net of foreign withholding tax of $–, $–, $–, $416 and $156, respectively.

^c	The Funds’ investment adviser is an affiliate of the issuers. See Note 2.

^d	Includes income earned from issuers of which the Funds’ investment adviser is an affiliate. See Note 2.

See notes to financial statements.


FINANCIAL STATEMENTS		89

Statements of Operations (Continued)

iSHARES^® TRUST

Period Ended April 30, 2005^a


	*iShares Morningstar*
	Mid Value Index Fund			Small Core Index Fund			Small Growth Index Fund			Small Value Index Fund
NET INVESTMENT INCOME
Dividends^b	$	459,506		$	270,117		$	20,351		$	411,931
Interest		—			32			—			—
Interest from affiliated issuers^c		343			460			158			288
Securities lending income^d		2,080			7,982			6,551			8,664

Total investment income		461,929			278,591			27,060			420,883

EXPENSES (Note 2)
Investment advisory fees		49,215			64,908			43,729			50,132

Total expenses		49,215			64,908			43,729			50,132

Net investment income (loss)		412,714			213,683			(16,669	)		370,751

NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments		(35,681	)		(193,967	)		(405,905	)		(125,147	)
In-kind redemptions		1,075,103			1,953,913			1,085,851			1,608,849

Net realized gain		1,039,422			1,759,946			679,946			1,483,702

Net change in unrealized appreciation (depreciation)		361,698			(3,097,138	)		(3,128,630	)		(2,714,746	)

Net realized and unrealized gain (loss)		1,401,120			(1,337,192	)		(2,448,684	)		(1,231,044	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	1,813,834		$	(1,123,509	)	$	(2,465,353	)	$	(860,293	)

^a	For the period from June 28, 2004 (commencement of operations) to April 30, 2005.

^b	Net of foreign withholding tax of $–, $247, $80 and $–, respectively.

^c	The Funds’ investment adviser is an affiliate of the issuers. See Note 2.

^d	Includes income earned from issuers of which the Funds’ investment adviser is an affiliate. See Note 2.

See notes to financial statements.


90		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets

iSHARES^® TRUST


	*iShares Morningstar*
	Large Core Index Fund			Large Growth Index Fund			Large Value Index Fund			Mid Core Index Fund			Mid Growth Index Fund
	For the period June 28, 2004^a to April 30, 2005			For the period June 28, 2004^a to April 30, 2005			For the period June 28, 2004^a to April 30, 2005			For the period June 28, 2004^a to April 30, 2005			For the period June 28, 2004^a to April 30, 2005
INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	379,236		$	374,616		$	818,966		$	289,315		$	17,124
Net realized gain (loss)		881,150			(932,614	)		923,100			1,098,635			1,481,847
Net change in unrealized appreciation (depreciation)		(163,263	)		(2,467,127	)		655,008			(1,307,354	)		(908,549	)

Net increase (decrease) in net assets resulting from operations		1,097,123			(3,025,125	)		2,397,074			80,596			590,422

DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(338,696	)		(374,616	)		(656,659	)		(237,760	)		(13,686	)
Return of capital		—			(1,659	)		—			—			—

Total distributions to shareholders		(338,696	)		(376,275	)		(656,659	)		(237,760	)		(13,686	)

CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		58,919,622			52,886,792			60,097,806			69,783,765			40,533,114
Cost of shares redeemed		(6,398,197	)		—			(6,515,100	)		(6,573,550	)		(9,820,989	)

Net increase in net assets from capital share transactions		52,521,425			52,886,792			53,582,706			63,210,215			30,712,125

INCREASE IN NET ASSETS		53,279,852			49,485,392			55,323,121			63,053,051			31,288,861

NET ASSETS:
Beginning of period		—			—			—			—			—

End of period	$	53,279,852		$	49,485,392		$	55,323,121		$	63,053,051		$	31,288,861

Undistributed net investment income included in net assets at end of period	$	40,376		$	—		$	161,725		$	43,655		$	3,438

SHARES ISSUED AND REDEEMED:
Shares sold		950,000			900,000			950,000			1,100,000			650,000
Shares redeemed		(100,000	)		—			(100,000	)		(100,000	)		(150,000	)

Net increase in shares outstanding		850,000			900,000			850,000			1,000,000			500,000

^a	Commencement of operations.

See notes to financial statements.


FINANCIAL STATEMENTS		91

Statements of Changes in Net Assets (Continued)

iSHARES^® TRUST


	*iShares Morningstar*
	Mid Value Index Fund			Small Core Index Fund			Small Growth Index Fund			Small Value Index Fund
	For the period June 28, 2004^a to April 30, 2005			For the period June 28, 2004^a to April 30, 2005			For the period June 28, 2004^a to April 30, 2005			For the period June 28, 2004^a to April 30, 2005
INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income (loss)	$	412,714		$	213,683		$	(16,669	)	$	370,751
Net realized gain		1,039,422			1,759,946			679,946			1,483,702
Net change in unrealized appreciation (depreciation)		361,698			(3,097,138	)		(3,128,630	)		(2,714,746	)

Net increase (decrease) in net assets resulting from operations		1,813,834			(1,123,509	)		(2,465,353	)		(860,293	)

DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(315,275	)		(170,179	)		—			(297,321	)
Return of capital		—			(14,737	)		—			—

Total distributions to shareholders		(315,275	)		(184,916	)		—			(297,321	)

CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		38,663,567			73,200,367			39,885,637			55,177,512
Cost of shares redeemed		(6,745,365	)		(34,571,492	)		(12,040,258	)		(19,718,493	)

Net increase in net assets from capital share transactions		31,918,202			38,628,875			27,845,379			35,459,019

INCREASE IN NET ASSETS		33,416,761			37,320,450			25,380,026			34,301,405

NET ASSETS:
Beginning of period		—			—			—			—

End of period	$	33,416,761		$	37,320,450		$	25,380,026		$	34,301,405

Undistributed net investment income included in net assets at end of period	$	84,702		$	3,824		$	—		$	45,074

SHARES ISSUED AND REDEEMED:
Shares sold		600,000			1,150,000			650,000			850,000
Shares redeemed		(100,000	)		(550,000	)		(200,000	)		(300,000	)

Net increase in shares outstanding		500,000			600,000			450,000			550,000

^a	Commencement of operations.

See notes to financial statements.


92		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights

iSHARES^® TRUST

(For a share outstanding throughout the period)

Period Ended April 30, 2005^a


	*iShares Morningstar*
	Large Core Index Fund			Large Growth Index Fund			Large Value Index Fund			Mid Core Index Fund			Mid Growth Index Fund
Net asset value, beginning of period	$	59.92		$	59.96		$	60.13		$	59.61		$	59.33

Income from investment operations:
Net investment income		0.65			0.80			1.41			0.46			0.04
Net realized and unrealized gain (loss)		2.71			(4.98	)		4.77			3.39			3.24

Total from investment operations		3.36			(4.18	)		6.18			3.85			3.28

Less distributions from:
Net investment income		(0.60	)		(0.80	)		(1.22	)		(0.41	)		(0.03	)
Return of capital		—			(0.00	)^e		—			—			—

Total distributions		(0.60	)		(0.80	)		(1.22	)		(0.41	)		(0.03	)

Net asset value, end of period	$	62.68		$	54.98		$	65.09		$	63.05		$	62.58

Total return		5.62	%^b		(7.04	)%^b		10.33	%^b		6.46	%^b		5.52	%^b

Ratios/Supplemental data:
Net assets, end of period (000s)	$	53,280		$	49,485		$	55,323		$	63,053		$	31,289
Ratio of expenses to average net assets^c		0.20	%		0.25	%		0.25	%		0.25	%		0.30	%
Ratio of net investment income to average net assets^c		1.33	%		1.48	%		2.85	%		1.12	%		0.09	%
Portfolio turnover rate^d		4	%		19	%		2	%		3	%		11	%

^a	For the period from June 28, 2004 (commencement of operations) to April 30, 2005.

^b	Not annualized.

^c	Annualized for periods of less than one year.

^d	Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

^e	Rounds to less than $0.01.

See notes to financial statements.


FINANCIAL HIGHLIGHTS		93

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout the period)

Period Ended April 30, 2005^a


	*iShares Morningstar*
	Mid Value Index Fund			Small Core Index Fund			Small Growth Index Fund			Small Value Index Fund
Net asset value, beginning of period	$	59.91		$	59.83		$	59.59		$	59.97

Income from investment operations:
Net investment income (loss)		1.23			0.43			(0.04	)		1.19
Net realized and unrealized gain (loss)		6.73			2.32			(3.15	)		2.27

Total from investment operations		7.96			2.75			(3.19	)		3.46

Less distributions from:
Net investment income		(1.04	)		(0.35	)		—			(1.06	)
Return of capital		—			(0.03	)		—			—

Total distributions		(1.04	)		(0.38	)		—			(1.06	)

Net asset value, end of period	$	66.83		$	62.20		$	56.40		$	62.37

Total return		13.33	%^b		4.56	%^b		(5.36	)%^b		5.72	%^b

Ratios/Supplemental data:
Net assets, end of period (000s)	$	33,417		$	37,320		$	25,380		$	34,301
Ratio of expenses to average net assets^c		0.30	%		0.25	%		0.30	%		0.30	%
Ratio of net investment income (loss) to average net assets^c		2.52	%		0.82	%		(0.11	)%		2.22	%
Portfolio turnover rate^d		7	%		16	%		26	%		10	%

^a	For the period from June 28, 2004 (commencement of operations) to April 30, 2005.

^b	Not annualized.

^c	Annualized for periods of less than one year.

^d	Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.


94		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to the Financial Statements

iSHARES^® TRUST

I. SIGNIFICANT ACCOUNTING POLICIES

These financial statements relate only to the iShares Morningstar Large Core, iShares Morningstar Large Growth, iShares Morningstar Large Value, iShares Morningstar Mid Core, iShares Morningstar Mid Growth, iShares Morningstar Mid Value, iShares Morningstar Small Core, iShares Morningstar Small Growth and iShares Morningstar Small Value Index Funds (each a “Fund,” collectively the “Funds”). The Funds commenced operations on June 28, 2004.

The investment objective of each Fund is to seek investment results that correspond generally to the price and yield performance, before fees and expenses, of its underlying index, as indicated in the name of each Fund. The investment adviser uses a “passive” or index approach to achieve each Fund’s investment objective. Each of the Funds is classified as a diversified fund under the 1940 Act, except for the iShares Morningstar Large Core, iShares Morningstar Large Growth and iShares Morningstar Large Value Index Funds, which are classified as non-diversified funds. Non-diversified funds generally hold stocks of fewer companies than diversified funds and may be more susceptible to the risks associated with these particular companies, or to a single economic, political or regulatory occurrence affecting these companies.

SECURITY VALUATION

SECURITY TRANSACTIONS AND INCOME RECOGNITION


NOTES TO THE FINANCIAL STATEMENTS		95

Notes to the Financial Statements (Continued)

iSHARES^® TRUST

DISTRIBUTIONS TO SHAREHOLDERS

As of April 30, 2005, the tax year-end of the Funds, the components of distributable earnings (accumulated losses) on a tax basis were as follows:


*iShares Index Fund*	Undistributed Ordinary Income		Unrealized Appreciation (Depreciation)			Capital and Other Losses			Net Distributable Earnings (Accumulated Losses)
Morningstar Large Core	$	40,286	$	(167,057	)	$	(95,506	)	$	(222,277	)
Morningstar Large Growth		—		(2,567,535	)		(832,206	)		(3,399,741	)
Morningstar Large Value		161,475		643,660			(18,851	)		786,284
Morningstar Mid Core		43,111		(1,331,569	)		(116,322	)		(1,404,780	)
Morningstar Mid Growth		3,438		(923,734	)		(71,381	)		(991,677	)
Morningstar Mid Value		79,964		358,422			(9,742	)		428,644
Morningstar Small Core		—		(3,108,711	)		(42,309	)		(3,151,020	)
Morningstar Small Growth		—		(3,147,691	)		(44,112	)		(3,191,803	)
Morningstar Small Value		38,737		(2,721,101	)		(70,798	)		(2,753,162	)

For the period ended April 30, 2005, the tax characterization of distributions paid for each Fund was equal to the book characterization of distributions paid. The total distributions and distributions per share are disclosed in the accompanying Statements of Changes in Net Assets and the Financial Highlights for all Funds.

FEDERAL INCOME TAXES


96		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to the Financial Statements (Continued)

iSHARES^® TRUST

From November 1, 2004 to April 30, 2005, certain Funds incurred net realized capital losses. As permitted by tax regulations, these Funds have elected to defer these losses and treat them as arising in the year ending April 30, 2006, as follows:


*iShares Index Fund*	Deferred Net Realized Capital Losses
Morningstar Large Core	$	55,807
Morningstar Large Growth		778,091
Morningstar Mid Core		96,296
Morningstar Mid Growth		56,518
Morningstar Small Core		29,815
Morningstar Small Growth		6,865
Morningstar Small Value		52,120

The Funds had tax basis net capital loss carryforwards as of April 30, 2005, the tax year-end of the Funds, as follows:


*iShares Index Fund*	Expiring 2013		*Total*
Morningstar Large Core	$	39,699	$	39,699
Morningstar Large Growth		54,115		54,115
Morningstar Large Value		18,851		18,851
Morningstar Mid Core		20,026		20,026
Morningstar Mid Growth		14,863		14,863
Morningstar Mid Value		9,742		9,742
Morningstar Small Core		12,494		12,494
Morningstar Small Growth		37,247		37,247
Morningstar Small Value		18,678		18,678

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

For the period ended April 30, 2005, certain Funds realized net capital gains or losses resulting from in-kind redemptions of large blocks of shares or multiples thereof (“Creation Units”). Because such gains or losses are not taxable to the Funds, and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gains or losses to paid-in-capital at the end of the Funds’ tax year. This reclassification has no effect on net assets or net asset values per share. The net realized in-kind gains or losses for the period ended April 30, 2005 are disclosed in the Funds’ Statements of Operations.


NOTES TO THE FINANCIAL STATEMENTS		97

Notes to the Financial Statements (Continued)

iSHARES^® TRUST

As of April 30, 2005, the aggregate unrealized appreciation and depreciation based on cost for federal income tax purposes were as follows:


*iShares Index Fund*	*Tax Cost*		Unrealized Appreciation		Unrealized Depreciation			Net Unrealized Appreciation (Depreciation)
Morningstar Large Core	$	57,079,306	$	2,186,422	$	(2,353,479	)	$	(167,057	)
Morningstar Large Growth		55,133,826		990,361		(3,557,896	)		(2,567,535	)
Morningstar Large Value		58,545,910		2,215,635		(1,571,975	)		643,660
Morningstar Mid Core		68,972,694		2,233,233		(3,564,802	)		(1,331,569	)
Morningstar Mid Growth		34,541,465		1,683,730		(2,607,464	)		(923,734	)
Morningstar Mid Value		35,681,517		1,464,325		(1,105,903	)		358,422
Morningstar Small Core		46,090,144		1,245,437		(4,354,148	)		(3,108,711	)
Morningstar Small Growth		33,081,540		894,619		(4,042,310	)		(3,147,691	)
Morningstar Small Value		41,192,223		583,079		(3,304,180	)		(2,721,101	)

REPURCHASE AGREEMENTS

Each Fund may enter into repurchase agreements with banks and securities dealers. These transactions involve the purchase of securities with a simultaneous commitment to resell the securities to the bank or the dealer at an agreed-upon date and price. A repurchase agreement is accounted for as an investment by the Fund, collateralized by securities, which are delivered to the Fund’s custodian or to an agent bank under a tri-party agreement. The securities are marked-to-market daily and additional securities are acquired as needed, to ensure that their value equals or exceeds the repurchase price plus accrued interest. As of April 30, 2005, a portion of the cash collateral for securities on loan for certain Funds was invested in repurchase agreements as disclosed in each Fund’s Schedule of Investments. For further information, see Note 5, below.

2. AGREEMENTS AND OTHER TRANSACTIONS WITH AFFILIATES

For its investment advisory services to each Fund, BGFA is entitled to an annual investment advisory fee based on the average daily net assets of each Fund as follows:


*iShares Index Fund*	Investment Advisory Fee
Morningstar Large Core	0.20	%
Morningstar Large Growth	0.25
Morningstar Large Value	0.25
Morningstar Mid Core	0.25
Morningstar Mid Growth	0.30
Morningstar Mid Value	0.30
Morningstar Small Core	0.25
Morningstar Small Growth	0.30
Morningstar Small Value	0.30


98		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to the Financial Statements (Continued)

iSHARES^® TRUST

Pursuant to an exemptive order issued by the U.S. Securities and Exchange Commission (the “SEC”), the Funds are permitted to lend portfolio securities to Barclays Capital, Inc. (“BarCap”). Pursuant to the same exemptive order, Barclays Global Investors, N.A. (“BGI”) serves as securities lending agent for the Trust. BarCap and BGI are affiliates of BGFA, the Funds’ investment adviser. As securities lending agent, BGI receives, as fees, a share of the income earned on investment of the cash collateral received for the loan of securities. For the period ended April 30, 2005, BGI earned securities lending agent fees as follows:


*iShares Index Fund*	Securities Lending Agent Fees
Morningstar Large Core	$	1,190
Morningstar Large Growth		990
Morningstar Large Value		1,004
Morningstar Mid Core		1,914
Morningstar Mid Growth		4,229
Morningstar Mid Value		2,080
Morningstar Small Core		7,982
Morningstar Small Growth		6,551
Morningstar Small Value		8,664

Barclays Global Investors Services (“BGIS”), a subsidiary of BGI, may serve as a broker-dealer for the Funds. For the period ended April 30, 2005, BGIS did not receive any brokerage commissions from the Funds.

As defined in Section 2(a)(3) of the 1940 Act, certain broker-dealers may be deemed to be an “affiliated person” of a Fund by virtue of being a DTC Participant that owned of record 5% or more of the outstanding shares of such Fund. The broker-dealers identified to be an “affiliated person” of a Fund did not execute any portfolio transactions with or on behalf of such Fund during the period ended April 30, 2005.


NOTES TO THE FINANCIAL STATEMENTS		99

Notes to the Financial Statements (Continued)

iSHARES^® TRUST

The following table provides information about the investment by each Fund in shares of issuers of which BGFA is an affiliate for the period ended April 30, 2005, including income earned from these affiliated issuers.


*iShares Index Fund and* *Name of Affiliated Issuer*	Number of Shares Held Beginning of Period (in 000s)	Gross Additions (in 000s)	Gross Reductions (in 000s)	Number of Shares *Held End* of Period (in 000s)	Value at End of Period		Interest Income
Morningstar Large Core
IMMF	—	3,130	3,116	14	$	14,069	$	485
Morningstar Large Growth
IMMF	—	2,523	2,511	12		11,760		360
Morningstar Large Value
IMMF	—	3,600	3,564	36		36,045		607
Morningstar Mid Core
IMMF	—	3,663	3,618	45		45,298		500
Morningstar Mid Growth
IMMF	—	1,242	1,228	14		13,815		168
Morningstar Mid Value
IMMF	—	2,294	2,249	45		44,638		343
Morningstar Small Core
IMMF	—	2,854	2,829	25		25,415		460
Morningstar Small Growth
IMMF	—	945	921	24		23,548		158
Morningstar Small Value
IMMF	—	1,999	1,988	11		10,827		288

During the period ended April 30, 2005, the Funds invested cash collateral from securities on loan in the GMMF, IMMF and PMMF. Due to the nature of the structure of the joint account used for the investment of the collateral for securities on loan, the information reported above for each Fund does not include the Fund’s holdings of the GMMF, IMMF and PMMF in connection with the investment of collateral for securities on loan.

As of April 30, 2005, certain trustees and officers of the Trust are also officers of BGI.


100		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to the Financial Statements (Continued)

iSHARES^® TRUST

3. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the period ended April 30, 2005 were as follows:


*iShares Index Fund*	*Purchases*		*Sales*
Morningstar Large Core	$	2,028,272	$	1,446,684
Morningstar Large Growth		5,773,112		5,755,385
Morningstar Large Value		1,125,538		780,162
Morningstar Mid Core		1,241,346		1,098,943
Morningstar Mid Growth		2,582,299		2,698,834
Morningstar Mid Value		1,341,864		1,327,803
Morningstar Small Core		5,167,501		5,334,065
Morningstar Small Growth		4,812,251		4,678,477
Morningstar Small Value		2,285,346		2,147,433
In-kind transactions (see Note 4) for the period ended April 30, 2005 were as follows:


*iShares Index Fund*	*In-kind Purchases*		*In-kind Sales*
Morningstar Large Core	$	63,083,760	$	11,147,984
Morningstar Large Growth		52,858,670		—
Morningstar Large Value		62,709,293		9,386,479
Morningstar Mid Core		77,678,204		14,624,557
Morningstar Mid Growth		42,919,864		12,100,866
Morningstar Mid Value		41,820,447		9,958,537
Morningstar Small Core		77,828,784		39,035,623
Morningstar Small Growth		39,839,565		12,042,493
Morningstar Small Value		57,856,055		22,501,609

4. CAPITAL SHARE TRANSACTIONS


NOTES TO THE FINANCIAL STATEMENTS		101

Notes to the Financial Statements (Continued)

iSHARES^® TRUST

5. LOANS OF PORTFOLIO SECURITIES

As of April 30, 2005, the Funds had loaned securities which were collateralized by cash. The cash collateral received was invested in a joint account with other investment funds managed by BGFA. The joint account invests in securities with remaining maturities of 397 days or less, repurchase agreements and money market mutual funds, including money market funds managed by BGFA. Repurchase agreements held in the joint account are fully collateralized by U.S. Government securities. Income from the joint account is allocated daily to each Fund, based on each Fund’s portion of the total cash collateral received. The market value of the securities on loan at April 30, 2005 and the value of the related collateral are disclosed in the Statements of Assets and Liabilities. Securities lending income, which is disclosed in the Funds’ Statements of Operations, is presented net of rebates paid to, or fees paid by, borrowers.


102		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Trustees of iShares Trust:

In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of the funds comprising the iShares Morningstar Index Funds (the “Funds”), as listed on the table of contents, at April 30, 2005, the results of each of their operations for the period then ended and the changes in each of their net assets and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at April 30, 2005 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California

June 20, 2005


REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM		103

Tax Information (Unaudited)

iSHARES^® TRUST

For corporate shareholders, a portion of the income dividends paid by certain Funds during the period ended April 30, 2005 qualified for the dividends-received deduction, as follows:


*iShares Index Fund*	*Dividends–* Received Deduction
Morningstar Large Core	100.00	%
Morningstar Large Growth	100.00
Morningstar Large Value	100.00
Morningstar Mid Core	100.00
Morningstar Mid Growth	100.00
Morningstar Mid Value	87.03
Morningstar Small Core	87.69
Morningstar Small Value	61.15


*iShares Index Fund*	Qualified Dividend Income
Morningstar Large Core	$	378,982
Morningstar Large Growth		374,616
Morningstar Large Value		801,708
Morningstar Mid Core		226,637
Morningstar Mid Growth		17,124
Morningstar Mid Value		326,084
Morningstar Small Core		154,128
Morningstar Small Value		177,398


104		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited)

iSHARES^® TRUST

iShares Morningstar Large Core Index Fund

Period Covered: July 1, 2004 through March 31, 2005


*Premium/Discount Range*	Number of Days	Percentage of Total Days
Greater than 0.5%	1	0.54	%
Between 0.5% and –0.5%	185	99.46

	186	100.00	%

iShares Morningstar Large Growth Index Fund

Period Covered: July 1, 2004 through March 31, 2005


*Premium/Discount Range*	Number of Days	Percentage of Total Days
Greater than 0.5%	2	1.08	%
Between 0.5% and –0.5%	184	98.92

	186	100.00	%

iShares Morningstar Large Value Index Fund

Period Covered: July 1, 2004 through March 31, 2005


*Premium/Discount Range*	Number of Days	Percentage of Total Days
Between 0.5% and –0.5%	186	100.00	%

	186	100.00	%


SUPPLEMENTAL INFORMATION		105

Supplemental Information (Unaudited) (Continued)

iSHARES^® TRUST

iShares Morningstar Mid Core Index Fund

Period Covered: July 1, 2004 through March 31, 2005


*Premium/Discount Range*	Number of Days	*Percentage of* *Total Days*
Between 0.5% and –0.5%	186	100.00	%

	186	100.00	%

iShares Morningstar Mid Growth Index Fund

Period Covered: July 1, 2004 through March 31, 2005


*Premium/Discount Range*	Number of Days	*Percentage of* *Total Days*
Between 0.5% and –0.5%	186	100.00	%

	186	100.00	%

iShares Morningstar Mid Value Index Fund

Period Covered: July 1, 2004 through March 31, 2005


*Premium/Discount Range*	*Number* *of Days*	*Percentage of* *Total Days*
Between 0.5% and –0.5%	186	100.00	%

	186	100.00	%

iShares Morningstar Small Core Index Fund

Period Covered: July 1, 2004 through March 31, 2005


*Premium/Discount Range*	Number of Days	*Percentage of* *Total Days*
Greater than 0.5%	2	1.08	%
Between 0.5% and –0.5%	184	98.92

	186	100.00	%

iShares Morningstar Small Growth Index Fund

Period Covered: July 1, 2004 through March 31, 2005


*Premium/Discount Range*	Number of Days	*Percentage of* *Total Days*
Greater than 0.5%	4	2.15	%
Between 0.5% and –0.5%	181	97.30
Less than –0.5%	1	0.55

	186	100.00	%

iShares Morningstar Small Value Index Fund

Period Covered: July 1, 2004 through March 31, 2005


*Premium/Discount Range*	Number of Days	*Percentage of* *Total Days*
Greater than 0.5%	1	0.54	%
Between 0.5% and –0.5%	185	99.46

	186	100.00	%


106		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Trustee Information (Unaudited)

iSHARES^® TRUST

Interested Trustees


Name, Year of Birth	Position(s), Length of Service	Principal Occupation(s) During Past 5 Years	Other Directorships Held
*Lee T. Kranefuss, 1961	Trustee, Chairman, and President (since June 18, 2003).	Chief Executive Officer of Intermediary Investor and Exchange Traded Products Business of BGI (since 2003); Chief Executive Officer of the Individual Investor Business of BGI (1997-2003).	Director (since 2003) of iShares, Inc.; Trustee (since 2001) of Barclays Global Investors Funds and Master Investment Portfolio; Trustee (since 2003) of BGI Cayman Prime Money Market Fund; Director (since 2003) of iShares PLC and EETF PLC (Dublin).

*John E. Martinez, 1962	Trustee (since December 5, 2003).	Co-CEO of Global Index and Markets Group of BGI (2001-2003); Chairman of Barclays Global Investors Services (2000-2003); CEO of Capital Markets Group of BGI (1996-2001).	Director (since 2005) of Real Estate Equity Exchange; Director (since 2003) of Larkin Street Youth Services; Director (2000-2002) of Barclays Global Investors UK Holdings.

*	Lee T. Kranefuss and John E. Martinez are considered to be “interested persons” (as defined in the 1940 Act) of the Trust due to their affiliations with BGFA, the Funds’ investment adviser, and BGFA’s affiliates.

Independent Trustees

Name, Year of Birth

Position(s),
Length of Service

Principal Occupation(s)

During Past 5 Years

Other Directorships Held

Richard K. Lyons, 1961

Trustee (since

February 15, 2000).


TRUSTEES INFORMATION		107

Trustee Information (Unaudited) (Continued)

iSHARES^® TRUST

Independent Trustees (continued)


Name, Year of Birth	Position(s), Length of Service	Principal Occupation(s) During Past 5 Years	Other Directorships Held
George G. C. Parker, 1939	Trustee (since February 15, 2000).	Dean Witter Distinguished Professor of Finance (since 1994); Senior Associate Dean for Academic Affairs, Director of MBA Program, Stanford University: Graduate School of Business (1993-2001).	Director (since 2002) of iShares, Inc.; Director (since 1998) of Affinity Group Holdings; Director (since 1985) of Bailard, Biehl and Kaiser, Inc.; Director (since 1978) of California Casualty Group of Insurance Companies; Director (since 1996) of Continental Airlines, Inc.; Director (since 1996) of Community First Financial Group; Director (since 1999) of Tejon Ranch Company; Director (since 2003) of First Republic Bank; Director (since 2000) of Converium Re-Insurance; Director (since 2004) of Threshold Pharmaceuticals.

W. Allen Reed, 1947	Trustee (since January 1, 2002).	President and Chief Executive Officer of General Motors Investment Management Corporation (since 1994); Chief Executive Officer of General Motors Trust Bank (since 2003); Chief Executive Officer of General Motors Trust Company (since 1999).	Director (since 1996) of iShares, Inc.; Director (since 1994) of General Motors Investment Management Corporation; Director and Chairman (since 2003) of General Motors Trust Bank; Director and Chairman (since 1999) of General Motors Trust Company; Director (since 2002) of GMAM ARS Fund I; Director (since 1994) of General Motors Acceptance Corporation; Director (since 1994) of GMAC Insurance Holdings, Inc.; Director (since 1995) of Global Emerging Markets Fund; Director (since 2000) of Temple Inland Industries; Member (since 2004) of Board of Executives of New York Stock Exchange; Member (since 1995) of New York State Retirement System Advisory Board; Member (since 2004) of the Auburn University Foundation Fund Investment Committee.


108		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Trustee Information (Unaudited) (Continued)

iSHARES^® TRUST

Officer

Name, Year of Birth

Position(s),
Length of Service

Principal Occupation(s)

During Past 5 Years

Other Directorships Held

Michael A. Latham, 1965

Secretary, Treasurer and

Principal Financial Officer (since February 28, 2002).

None.


TRUSTEE INFORMATION		109

The iShares^® Family of Funds

iShares S&P Domestic Index Funds

iShares S&P 1500 (ISI)

iShares S&P 500 (IVV)

iShares S&P 500/BARRA Growth (IVW)

iShares S&P 500/BARRA Value (IVE)

iShares S&P MidCap 400 (IJH)

iShares S&P MidCap 400/BARRA Growth (IJK)

iShares S&P MidCap 400/BARRA Value (IJJ)

iShares S&P SmallCap 600 (IJR)

iShares S&P SmallCap 600/BARRA Growth (IJT)

iShares S&P SmallCap 600/BARRA Value (IJS)

iShares S&P 100 (OEF)

iShares Sector and Specialty Index Funds

iShares Cohen & Steers Realty Majors (ICF)

iShares Dow Jones Select Dividend (DVY)

iShares Dow Jones Transportation Average (IYT)

iShares Dow Jones U.S. Basic Materials Sector (IYM)

iShares Dow Jones U.S. Consumer Goods Sector (IYK)

iShares Dow Jones U.S. Consumer Services Sector (IYC)

iShares Dow Jones U.S. Energy Sector (IYE)

iShares Dow Jones U.S. Financial Sector (IYF)

iShares Dow Jones U.S. Financial Services (IYG)

iShares Dow Jones U.S. Healthcare Sector (IYH)

iShares Dow Jones U.S. Industrial Sector (IYJ)

iShares Dow Jones U.S. Real Estate (IYR)

iShares Dow Jones U.S. Technology Sector (IYW)

iShares Dow Jones U.S. Telecommunications Sector (IYZ)

iShares Dow Jones U.S. Total Market (IYY)

iShares Dow Jones U.S. Utilities Sector (IDU)

iShares Goldman Sachs Natural Resources (IGE)

iShares Goldman Sachs Networking (IGN)

iShares Goldman Sachs Semiconductor (IGW)

iShares Goldman Sachs Software (IGV)

iShares Goldman Sachs Technology (IGM)

iShares KLD Select Social^SM(KLD)

iShares Nasdaq Biotechnology (IBB)

iShares S&P Global Energy Sector (IXC)

iShares S&P Global Financials Sector (IXG)

iShares S&P Global Healthcare Sector (IXJ)

iShares S&P Global Technology Sector (IXN)

iShares S&P Global Telecommunications Sector (IXP)

iShares Russell Index Funds

iShares Russell 3000 (IWV)

iShares Russell 3000 Growth (IWZ)

iShares Russell 3000 Value (IWW)

iShares Russell 1000 (IWB)

iShares Russell 1000 Growth (IWF)

iShares Russell 1000 Value (IWD)

iShares Russell Midcap (IWR)

iShares Russell Midcap Growth (IWP)

iShares Russell Midcap Value (IWS)

iShares Russell 2000 (IWM)

iShares Russell 2000 Growth (IWO)

iShares Russell 2000 Value (IWN)

iShares International Index Funds

iShares FTSE/Xinhua China 25 (FXI)

iShares MSCI Australia (EWA)

iShares MSCI Austria (EWO)

iShares MSCI Belgium (EWK)

iShares MSCI Brazil (EWZ)

iShares MSCI Canada (EWC)

iShares MSCI EAFE (EFA)

iShares MSCI Emerging Markets (EEM)

iShares MSCI EMU (EZU)

iShares MSCI France (EWQ)

iShares MSCI Germany (EWG)

iShares MSCI Hong Kong (EWH)

iShares MSCI Italy (EWI)

iShares MSCI Japan (EWJ)

iShares MSCI Malaysia (EWM)

iShares MSCI Mexico (EWW)

iShares MSCI Netherlands (EWN)

iShares MSCI Pacific ex-Japan (EPP)

iShares MSCI Singapore (EWS)

iShares MSCI South Africa (EZA)

iShares MSCI South Korea (EWY)

iShares MSCI Spain (EWP)

iShares MSCI Sweden (EWD)

iShares MSCI Switzerland (EWL)

iShares MSCI Taiwan (EWT)

iShares MSCI United Kingdom (EWU)

iShares S&P Europe 350 (IEV)

iShares S&P Global 100 (IOO)

iShares S&P Latin America 40 (ILF)

iShares S&P/TOPIX 150 (ITF)

iShares Bond Funds

iShares GS $ InvesTop^™ Corporate (LQD)

iShares Lehman Aggregate (AGG)

iShares Lehman TIPS (TIP)

iShares Lehman 1-3 Year Treasury (SHY)

iShares Lehman 7-10 Year Treasury (IEF)

iShares Lehman 20+ Year Treasury (TLT)

iShares NYSE Index Funds

iShares NYSE 100 (NY)

iShares NYSE Composite (NYC)

iShares Morningstar Index Funds

iShares Morningstar Large Core (JKD)

iShares Morningstar Large Growth (JKE)

iShares Morningstar Large Value (JKF)

iShares Morningstar Mid Core (JKG)

iShares Morningstar Mid Growth (JKH)

iShares Morningstar Mid Value (JKI)

iShares Morningstar Small Core (JKJ)

iShares Morningstar Small Growth (JKK)

iShares Morningstar Small Value (JKL)

An investment in the Fund(s) is not a deposit of a bank and it is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.

This advertising section does not constitute part of the 2005 Annual Report.

1667-iS-0505


110		2005 iSHARES ANNUAL REPORT TO SHAREHOLDERS

The iShares Funds are not sponsored, endorsed, issued, sold or promoted by Morningstar, Inc., nor does this company make any representation regarding the advisability of investing in the iShares Funds.

^©2005 Barclays Global Investors. All rights reserved. iShares^® is a registered trademark of Barclays Global Investors, N.A. All other trademarks, servicemarks or registered trademarks are the property of their respective owners.

Investing involves risk, including possible loss of principal.

A description of the policies that the Funds use to determine how to vote proxies relating to portfolio securities and information about how the Funds voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30, 2004 is available without charge, upon request, by calling toll- free 1 800 474 2737; on the Funds’ website at www.iShares.com; and on the Securities and Exchange Commission’s website at www.sec.gov.

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

BGI-F-014-06005

Item 2. Code of Ethics.

As of April 30, 2005, iShares Trust (the “Registrant”) had adopted a code of ethics that applies to persons appointed by the Registrant’s Board of Trustees as the Chief Executive Officer and President, Chief Financial Officer, Treasurer and/or Chief Accounting Officer, and any persons performing similar functions. For the fiscal year ended April 30, 2005, there were no amendments to any provision of this code of ethics, nor were there any waivers granted from any provision of this code of ethics. A copy of this code of ethics is filed with this Form N-CSR under Item 12(a)(1).

Item 3. Audit Committee Financial Expert.

The Registrant’s Board of Trustees has determined that the Registrant has more than one audit committee financial expert, as that term is defined under Item 3(b) and 3(c), serving on its audit committee. The audit committee financial experts serving on the Registrant’s audit committee are Richard K. Lyons, George G.C. Parker and W. Allen Reed, all of whom are independent, as that term is defined under Item 3(a)(2). Richard K. Lyons holds a PhD in Economics and qualifies as an audit committee financial expert through his many years of university-level (graduate) teaching of accounting and finance-related subjects, his many years of research in the same subjects (including mutual funds), and his extensive experience serving as independent director and as a member of various mutual fund audit committees.

Item 4. Principal Accountant Fees and Services.

The principal accountant fees disclosed in items 4(a), 4(b), 4(c), 4(d) and 4(g) are for twenty-six series of the Registrant for which the fiscal year-end is April 30, 2005 (the “Funds”), and whose annual financial statements are reported in Item 1.

(a)

Audit Fees – The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the Funds’ annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years, were $176,000 for the fiscal year ended April 30, 2004 and $338,000 for the fiscal year ended April 30, 2005.

(b)

Audit-Related Fees – There were no fees billed for the fiscal years ended April 30, 2004 and April 30, 2005 for assurance and related services by the principal accountant that were reasonably related to the performance of the audit of the Funds’ financial statements and are not reported under (a) of this Item.

(c)

Tax Fees – The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for the review of the Funds’ tax returns and excise tax calculations, were $86,400 for the fiscal year ended April 30, 2004 and $147,400 for the fiscal year ended April 30, 2005.

(d)

All Other Fees – There were no other fees billed for the fiscal years ended April 30, 2004 and April 30, 2005 for products and services provided by the principal accountant, other than the services reported in (a) through (c) of this Item.

(e)

(1) The Registrant’s audit committee charter, as amended in June 2004, provides that the audit committee is responsible for the approval, prior to appointment, of the engagement of the principal accountant to annually audit and provide their opinion on the Registrant’s financial statements. The audit committee must also approve, prior to appointment, the engagement of the principal accountant to provide non-audit services to the Registrant or to any entity controlling, controlled by or under common control with the Registrant’s investment adviser (“Adviser Affiliate”) that provides services to the Registrant, if the engagement relates directly to the operations and financial reporting of the Registrant.

(2) There were no services described in (b) through (d) above (including services required by the audit committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X) that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

(f)

None of the hours expended on the principal accountant’s engagement to audit the Funds’ financial statements for the fiscal year ended April 30, 2005 were attributable to work performed by persons other than the principal accountant’s full-time, permanent employees.

(g)

The aggregate non-audit fees billed by the Registrant’s principal accountant for services rendered to the Funds, and rendered to the Registrant’s investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the Registrant for the last two fiscal years, were $436,865 for the year ended April 30, 2004 and $737,050 for the year ended April 30, 2005, respectively.

(h)

The Registrant’s audit committee has considered whether the provision of non-audit services rendered to the Registrant’s investment adviser and any Adviser Affiliate that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, if any, are compatible with maintaining the principal accountant’s independence, and has determined that the provision of these services do not compromise the principal accountant’s independence.

Item 5. Audit Committee of Listed Registrants.

The Registrant is a listed issuer as defined in Rule 10A-3 under the Exchange Act and has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Exchange Act. The Registrant’s audit committee members are Richard K. Lyons, George G.C. Parker and W. Allen Reed.

Item 6. Schedule of Investments.

The Funds’ full schedules of investments are included as part of the reports to shareholders filed under Item 1 of this Form.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable to the Registrant.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable to the Registrant.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable to the Registrant.

Item 10. Submission of Matters to a Vote of Security Holders.

There were no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Trustees.

Item 11. 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 fourth fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

Item 12. Exhibits.

(a) (1) Code of Ethics for Senior Officers that is the subject of Item 2 is attached.

(a) (2) Section 302 Certifications are attached.

(a) (3) Not applicable to the Registrant.

(b) Section 906 Certifications are attached.

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


iShares Trust

By:		/s/ Lee T. Kranefuss
		Lee T. Kranefuss, President

Date: July 5, 2005

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.


By:		/s/ Lee T. Kranefuss
		Lee T. Kranefuss, President

Date: July 5, 2005


By:		/s/ Michael A. Latham
		Michael A. Latham, Principal Financial Officer

Date: July 5, 2005