Form N-CSR

The information in this Supplement updates the information in, and should be read in conjunction with, the Prospectus for the iShares FTSE/Xinhua China 25 Index Fund.

The following information supplements the information found under the heading “Investment Adviser” on page 9:

Effective August 1, 2007, for its investment advisory services to the iShares FTSE/Xinhua China 25 Index Fund, BGFA is paid management fees equal to 0.74% per year of the Fund’s net assets less than or equal to $6 billion, plus 0.67% per year of the Fund’s net assets between $6 billion and $12 billion, plus 0.60% per year of the Fund’s net assets in excess of $12 billion.

If you have any additional questions, please call 1-800-iShares (1-800-474-2737).

Total returns for the periods since inception are calculated from the inception date of the Fund (10/5/04). “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. Achieving such exceptional returns involves the risk of volatility and 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 (10/8/04), 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, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. The returns shown in the tables above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.

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, an 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.


TEN LARGEST FUND HOLDINGS As of 7/31/07
Security	Percentage of Net Assets
China Mobile Ltd.	9.50	%

PetroChina Co. Ltd. Class H	8.47

China Life Insurance Co. Ltd. Class H	8.47

Industrial & Commercial Bank of China Class H	5.88

China Construction Bank Class H	5.56

Ping An Insurance (Group) Co. of China Ltd. Class H	4.75

China Shenhua Energy Co. Ltd. Class H	4.45

China Communications Construction Co. Ltd. Class H	4.33

China Merchants Bank Co. Ltd. Class H	4.23

CNOOC Ltd.	4.15


TOTAL	59.79	%

The iShares FTSE/Xinhua China 25 Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the FTSE/Xinhua China 25 Index (the “Index”). The Index is designed to represent the performance of the largest companies in the China equity market that are available to international investors. The Index consists of Class H and “Red Chip” shares of 25 of the largest and most liquid Chinese companies. The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month period ended July 31, 2007 (the “reporting period”), the Fund returned 82.72%, while the Index returned 82.81%.

China’s market performance was robust during the reporting period, reflecting continued strong economic growth. The annualized gross domestic product (GDP) growth rate reached 11.9% in the second quarter of 2007, its fastest pace since 1995. In July 2007, export levels climbed by more than 34% from a year earlier, their fastest pace in five months. Additionally, industrial output grew by more than 19%.

The People’s Bank of China responded to the strong economic growth by continuing to raise its key interest rate in an attempt to prevent the economy from overheating. An appreciating Chinese currency, the yuan, also helped to relieve some inflationary pressure from the surging economy. Even so, inflation was on the rise toward the end of the reporting period, reaching 4.4% in June 2007.

The ten largest holdings of the Fund represented approximately 60% of the net assets of the Fund as of July 31, 2007. Among the Fund’s ten largest holdings as of July 31, 2007, performance was positive for the reporting period. Ping An Insurance (Group) Co. of China Ltd. Class H, China Life Insurance Co. Ltd. Class H and China Shenhua Energy Co. Ltd. Class H were the strongest performers for the reporting period. China Mobile Ltd. also performed strongly, as did China Construction Bank Class H. The most modest return among the Fund’s ten largest holdings came from PetroChina Co. Ltd. Class H.

Total returns for the periods since inception are calculated from the inception date of the Fund (8/14/01). “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.

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 the 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 (8/17/01), the NAV of the Fund is used as a proxy for secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.


PORTFOLIO ALLOCATION As of 7/31/07
Sector	Percentage of Net Assets
Financial	28.28	%

Consumer Non-Cyclical	14.96

Industrial	12.33

Consumer Cyclical	11.21

Communications	8.92

Basic Materials	8.28

Energy	7.48

Utilities	5.19

Technology	2.24

Diversified	0.78

Short-Term and Other Net Assets	0.33


TOTAL	100.00	%


TEN LARGEST FUND HOLDINGS As of 7/31/07
Security	Percentage of Net Assets
BP PLC (United Kingdom)	1.63	%

HSBC Holdings PLC (United Kingdom)	1.52

Total SA (France)	1.23

Toyota Motor Corp. (Japan)	1.20

Vodafone Group PLC (United Kingdom)	1.16

Nestle SA Registered (Switzerland)	1.09

GlaxoSmithKline PLC (United Kingdom)	1.04

Royal Dutch Shell PLC Class A (United Kingdom)	1.04

Roche Holding AG (Switzerland)	0.91

Novartis AG Registered (Switzerland)	0.90


TOTAL	11.72	%

The iShares MSCI EAFE Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI EAFE Index (the “Index”). The Index has been developed by Morgan Stanley Capital International, Inc. as an equity benchmark for international stock performance. The Index includes stocks from Europe, Australasia and the Far East. The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month period ended July 31, 2007 (the “reporting period”), the Fund returned 23.75%, while the Index returned 23.91%.

International markets generally delivered solid gains for the reporting period, driven by sound global economic growth. Around the world, strong demand, relatively low inflation levels, and improving employment rates supported economic growth. Healthy economic growth in Europe led the European Central Bank to raise rates five times during the reporting period. Germany registered annualized gross domestic product (GDP) growth of 3% for the first calendar quarter of 2007, its highest rate since 2000. France also witnessed economic expansion, although GDP growth in France slowed for the second quarter as business investment slipped. In the United Kingdom, sound economic growth and declining unemployment rates led the Bank of England to raise its base rate during the reporting period from 4.50% to 5.75%, its highest rate in six years.

Japan, which appeared to emerge from its long-standing deflationary environment, also experienced economic expansion. The Bank of Japan raised rates once during the reporting period, from 0.25% to 0.50%. However, at its July 2007 meeting, the Bank of Japan held rates steady, saying it would await additional evidence that economic growth would be sustained and inflation would take hold.

The ten largest holdings of the Fund represented approximately 12% of the net assets of the Fund as of July 31, 2007. Among the Fund’s ten largest holdings as of July 31, 2007, performance was mostly positive for the reporting period. Wireless telecommunications company Vodafone Group PLC (United Kingdom) was the strongest performer among the ten largest holdings. High energy prices benefited Total SA (France) and the Class A shares of Royal Dutch Shell PLC (United Kingdom). Toyota Motor Corp. (Japan) and Nestle SA (Switzerland) also performed well. Pharmaceutical companies Novartis AG (Switzerland) and GlaxoSmithKline PLC (United Kingdom) both declined for the reporting period.

Total returns for the periods since inception are calculated from the inception date of the Fund (8/1/05). “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 the 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 (8/5/05), the NAV of the Fund is used as a proxy for secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.


PORTFOLIO ALLOCATION As of 7/31/07
Sector	Percentage of Net Assets
Consumer Non-Cyclical	22.66	%

Industrial	17.89

Financial	15.19

Basic Materials	12.81

Consumer Cyclical	10.41

Communications	9.85

Technology	3.90

Utilities	3.89

Energy	2.44

Diversified	0.72

Short-Term and Other Net Assets	0.24


TOTAL	100.00	%


TEN LARGEST FUND HOLDINGS As of 7/31/07
Security	Percentage of Net Assets
GlaxoSmithKline PLC (United Kingdom)	2.07	%

Novartis AG Registered (Switzerland)	1.79

Roche Holding AG (Switzerland)	1.78

Nokia OYJ (Finland)	1.69

BHP Billiton Ltd. (Australia)	1.57

Siemens AG (Germany)	1.54

Telefonica SA (Spain)	1.51

AstraZeneca PLC (United Kingdom)	1.14

Anglo American PLC (United Kingdom)	1.12

Rio Tinto PLC (United Kingdom)	1.03


TOTAL	15.24	%

The iShares MSCI EAFE Growth Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI EAFE Growth Index (the “Index”). The Index is a subset of the MSCI EAFE Index and consists of those securities classified by Morgan Stanley Capital International, Inc. as most representing the growth style. The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month period ended July 31, 2007 (the “reporting period”), the Fund returned 23.28%, while the Index returned 23.70%.

The ten largest holdings of the Fund represented approximately 15% of the net assets of the Fund as of July 31, 2007. Among the Fund’s ten largest holdings as of July 31, 2007, performance was mostly positive for the reporting period. Siemens AG (Germany) was the strongest performer, followed by mining company BHP Billiton Ltd. (Australia) and mobile phone company Nokia OYJ (Finland). Pharmaceutical companies AstraZeneca PLC (United Kingdom), Novartis AG (Switzerland) and GlaxoSmithKline PLC (United Kingdom) all declined for the reporting period.

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 the 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 (8/5/05), the NAV of the Fund is used as a proxy for secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.


PORTFOLIO ALLOCATION As of 7/31/07
Sector	Percentage of Net Assets
Financial	41.59	%

Energy	12.74

Consumer Cyclical	11.53

Communications	7.78

Consumer Non-Cyclical	7.52

Industrial	6.70

Utilities	6.37

Basic Materials	4.43

Diversified	0.52

Technology	0.46

Short-Term and Other Net Assets	0.36


TOTAL	100.00	%


TEN LARGEST FUND HOLDINGS As of 7/31/07
Security	Percentage of Net Assets
BP PLC (United Kingdom)	3.36	%

HSBC Holdings PLC (United Kingdom)	3.16

Toyota Motor Corp. (Japan)	2.40

Vodafone Group PLC (United Kingdom)	2.35

Total SA (France)	2.33

Nestle SA Registered (Switzerland)	2.27

Royal Dutch Shell PLC Class A (United Kingdom)	2.13

Banco Santander Central Hispano SA (Spain)	1.77

Royal Bank of Scotland Group PLC (United Kingdom)	1.67

Royal Dutch Shell PLC Class B (United Kingdom)	1.61


TOTAL	23.05	%

The iShares MSCI EAFE Value Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI EAFE Value Index (the “Index”). The Index is a subset of the MSCI EAFE Index and consists of those securities classified by Morgan Stanley Capital International, Inc. as most representing the value style. The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month period ended July 31, 2007 (the “reporting period”), the Fund returned 23.70%, while the Index returned 24.03%.

The ten largest holdings of the Fund represented approximately 23% of the net assets of the Fund as of July 31, 2007. Among the Fund’s ten largest holdings as of July 31, 2007, performance was positive for the reporting period. Wireless telecommunications company Vodafone Group PLC (United Kingdom) was the strongest performer among the ten largest holdings. Banco Santander Central Hispano SA (Spain) also posted sound gains. Total SA (France) and Nestle SA (Switzerland) both performed well, as did Royal Bank of Scotland Group PLC (United Kingdom). The Fund’s largest holding at July 31, 2007, oil company BP PLC (United Kingdom), posted a slight gain for the reporting period.

As a shareholder of a 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 February 1, 2007 to July 31, 2007.

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.

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.


Security	Shares	Value
COMMON STOCKS – 99.75%

BANKS – 25.82%
Bank of China Ltd. Class H^a	349,430,000	$	185,737,588
Bank of Communications Co. Ltd. Class H^a	171,235,000		188,601,911
BOC Hong Kong Holdings Ltd.	83,013,000		215,322,012
China CITIC Bank Class H^a,b	5,810,000		4,483,935
China Construction Bank Class H^a	431,600,000		325,371,665
China Merchants Bank Co. Ltd. Class H^a	67,880,000		247,191,184
Industrial & Commercial Bank of China Class H^a	556,100,000		343,909,791

			1,510,618,086

COAL – 6.80%
China Coal Energy Co. Class H^b	72,485,000		137,259,569
China Shenhua Energy Co. Ltd. Class H^a	64,708,000		260,444,274

			397,703,843

ELECTRIC – 2.60%
Datang International Power Generation Co. Ltd. Class H^a	76,676,000		66,327,618
Huaneng Power International Inc. Class H^a	75,960,000		85,702,194

			152,029,812

ENGINEERING & CONSTRUCTION – 4.33%
China Communications Construction Co. Ltd. Class H	110,845,000		253,238,601

			253,238,601

HOLDING COMPANIES - DIVERSIFIED – 6.90%
China Merchants Holdings International Co. Ltd.^a	28,924,000		142,102,258
China Resources Enterprises Ltd.	29,310,000		118,532,055
Citic Pacific Ltd.^a	27,409,000		142,889,276

			403,523,589


Security	Shares	Value
INSURANCE – 15.12%
China Life Insurance Co. Ltd. Class H^a	114,540,000	$	495,406,996
PICC Property & Casualty Co. Ltd. Class H^a,b	86,018,000		111,008,695
Ping An Insurance (Group) Co. of China Ltd. Class H^a	32,021,500		278,225,459

			884,641,150

MINING – 4.27%
Aluminum Corporation of China Ltd. Class H^a	73,266,000		148,848,989
Zijin Mining Group Co. Ltd. Class H^a	129,430,000		100,881,393

			249,730,382

OIL & GAS – 16.37%
China Petroleum & Chemical Corp. Class H	207,500,000		219,265,294
CNOOC Ltd.^a	202,663,000		242,897,805
PetroChina Co. Ltd. Class H	332,720,000		495,705,504

			957,868,603

TELECOMMUNICATIONS – 17.54%
China Mobile Ltd.	47,725,000		555,838,843
China Netcom Group Corp. Ltd.^a	32,653,000		84,696,489
China Telecom Corp. Ltd. Class H^a	348,600,000		203,113,369
China Unicom Ltd.^a	101,260,000		182,950,507

			1,026,599,208


TOTAL COMMON STOCKS (Cost: $3,952,990,220)			5,835,953,274

SHORT-TERM INVESTMENTS – 18.30%

MONEY MARKET FUNDS – 18.30%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares
5.31%^c,d	3,027,118		3,027,118


Security	Shares	Value
BGI Cash Premier Fund LLC 5.34%^c,d,e	1,067,799,739	$	1,067,799,739

			1,070,826,857


TOTAL SHORT-TERM INVESTMENTS (Cost: $1,070,826,857)			1,070,826,857


TOTAL INVESTMENTS IN SECURITIES – 118.05% (Cost: $5,023,817,077)			6,906,780,131

Other Assets, Less Liabilities – (18.05)%			(1,055,921,550	)


NET ASSETS – 100.00%		$	5,850,858,581

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

^b	Non-income earning security.

^c	Affiliated issuer. See Note 2.

^d	The rate quoted is the annualized seven-day yield of the fund at period end.

^e	This security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.


Security	Shares	Value
COMMON STOCKS – 99.19%

AUSTRALIA – 6.28%
AGL Energy Ltd.	1,633,811	$	21,655,668
Alinta Ltd.	1,500,590		19,015,585
Alumina Ltd.	4,759,792		29,770,785
Amcor Ltd.	3,326,130		19,521,323
AMP Ltd.	6,366,110		54,872,099
Aristocrat Leisure Ltd.	1,373,520		16,063,756
Asciano Group^a	2,178,940		17,773,038
ASX Ltd.	760,480		31,959,963
Australia & New Zealand Banking Group Ltd.	6,152,056		149,171,609
Babcock & Brown Ltd.	795,400		19,211,449
BHP Billiton Ltd.	11,631,036		368,722,451
BlueScope Steel Ltd.	3,184,015		29,872,302
Boral Ltd.^b	3,030,280		20,121,665
Brambles Ltd.^a	5,717,180		54,275,156
Caltex Australia Ltd.	748,840		16,027,321
Centro Properties Group	4,168,090		28,426,907
Coca-Cola Amatil Ltd.	2,806,210		22,023,944
Coles Group Ltd.	4,265,090		53,024,316
Commonwealth Bank of Australia	4,241,355		197,180,458
Commonwealth Property Office Fund	37,862,010		51,904,273
Computershare Ltd.	1,979,221		16,941,008
CSL Ltd.	677,060		51,600,340
CSR Ltd.	5,504,750		15,800,174
DB RREEF Trust	18,150,640		28,225,915
Fortescue Metals Group Ltd.^a,b	405,460		11,474,560
Foster’s Group Ltd.	8,260,651		41,829,360
Futuris Corp. Ltd.	5,362,349		11,072,650
Goodman Group	3,037,572		15,823,757
GPT Group	8,390,500		32,422,301
Harvey Norman Holdings Ltd.	3,701,520		16,777,036
Insurance Australia Group Ltd.	6,538,770		31,933,783
Investa Property Group	12,122,090		30,431,586
James Hardie Industries NV	2,215,480		14,312,603
John Fairfax Holdings Ltd.	4,180,700		17,336,995
Lend Lease Corp. Ltd.	1,583,040		25,268,776
Macquarie Airports	2,538,490		9,504,655


Security	Shares	Value
Macquarie Bank Ltd.	821,908	$	58,097,389
Macquarie Infrastructure Group	10,058,900		28,182,382
Mirvac Group	6,143,980		27,057,793
Multiplex Group	3,375,600		14,345,382
National Australia Bank Ltd.	5,271,950		173,272,380
Newcrest Mining Ltd.	1,265,385		26,996,129
Orica Ltd.	1,080,045		25,864,442
Origin Energy Ltd.	4,848,606		40,836,628
Paladin Resources Ltd.^a,b	2,013,720		12,388,051
Qantas Airways Ltd.	4,154,275		20,430,857
QBE Insurance Group Ltd.	2,708,240		69,542,988
Rio Tinto Ltd.	1,016,615		81,076,006
Santos Ltd.	3,205,850		36,532,072
Stockland	5,868,500		38,867,451
Suncorp-Metway Ltd.	3,043,860		50,594,797
Symbion Health Ltd.	3,921,139		13,942,472
Tabcorp Holdings Ltd.	2,382,320		33,169,042
Tattersall’s Ltd.	3,425,070		14,408,886
Telstra Corp. Ltd.	8,378,860		33,023,433
Telstra Corp. Ltd. Installment Receipt	5,012,754		13,400,174
Toll Holdings Ltd.^b	2,153,922		26,261,186
Transurban Group	4,381,007		26,951,184
Wesfarmers Ltd.	1,196,010		39,954,666
Westfield Group	5,129,341		83,721,309
Westfield Group New	438,666		6,960,724
Westpac Banking Corp.	6,194,921		139,064,578
Woodside Petroleum Ltd.	1,797,670		66,677,148
Woolworths Ltd.	3,838,290		89,747,173
Zinifex Ltd.	1,581,100		26,971,808

			2,909,688,097

AUSTRIA – 0.59%
Erste Bank der Oesterreichischen Sparkassen AG^b	906,970		68,866,332
Immoeast AG^a	607,220		7,979,454
Meinl European Land Ltd.^a	653,243		15,245,968
Oesterreichische Elektrizitaetswirtschafts AG Class A	526,570		25,948,632
OMV AG	439,484		27,805,382


Security	Shares	Value
Raiffeisen International Bank Holding AG	186,240	$	28,593,467
RHI AG^a	246,817		12,824,993
Telekom Austria AG	1,689,350		41,601,277
Wiener Staedtische Allgemeine Versicherung AG	266,570		18,835,846
Wienerberger AG	338,661		23,804,633

			271,505,984

BELGIUM – 1.27%
AGFA-Gevaert NV	519,920		11,031,234
Cofinimmo	160,713		28,873,949
Colruyt SA	94,141		20,148,028
Delhaize Group	280,330		26,285,486
Dexia SA	1,927,171		55,793,870
Euronav SA	166,766		6,008,268
Fortis	3,852,371		154,086,353
Groupe Bruxelles Lambert SA	344,814		42,309,959
InBev	571,227		46,422,832
KBC Group NV	614,980		80,890,039
Mobistar SA	134,830		10,669,532
NV Bekaert SA	110,600		15,981,236
Omega Pharma SA	101,271		8,777,723
Solvay SA	240,560		36,814,684
UCB SA^b	377,330		21,347,283
Umicore	106,994		24,605,068

			590,045,544

DENMARK – 0.87%
A.P. Moller – Maersk A/S	3,880		51,749,989
A/S Dampskibsselskabet TORM	291,000		11,724,049
Carlsberg A/S Class B	187,280		24,255,185
Coloplast A/S Class B^b	214,370		17,943,862
Danisco A/S^b	258,020		19,342,896
Danske Bank A/S	1,732,420		73,701,352
GN Store Nord A/S^a	999,100		11,947,110
Novo Nordisk A/S Class B	847,780		89,679,161
Novozymes A/S Class B^b	284,210		33,880,896
Topdanmark A/S^a	138,765		23,741,241
Vestas Wind Systems A/S^a	661,540		44,786,225

			402,751,966


Security	Shares	Value
FINLAND – 1.69%
Cargotec Corp. Class B	235,710	$	12,380,143
Elisa OYJ Class A	731,380		20,873,967
Fortum OYJ	1,620,870		52,783,537
Kone OYJ Class B	424,860		28,840,037
Metso OYJ	562,600		36,195,405
Neste Oil OYJ	611,100		22,083,712
Nokia OYJ	13,282,907		384,919,444
Nokian Renkaat OYJ	626,620		20,911,915
Outokumpu OYJ^b	380,240		11,971,305
Rautaruukki OYJ	444,260		29,755,571
Sampo OYJ	1,551,030		46,921,116
Stora Enso OYJ Class R^b	2,079,680		36,011,640
TietoEnator OYJ^b	515,070		12,761,470
UPM-Kymmene OYJ	1,774,130		39,779,123
YIT OYJ	799,280		25,612,750

			781,801,135

FRANCE – 10.10%
Accor SA	758,540		65,726,129
Air France-KLM	524,964		23,922,093
Alcatel-Lucent	7,871,550		93,742,250
ALSTOM	370,600		67,876,179
Arcelor Mittal	2,911,940		182,280,195
Atos Origin SA^a,b	297,790		17,682,983
AXA	5,482,440		217,859,641
BNP Paribas	2,748,370		307,476,946
Bouygues SA	712,065		57,644,360
Business Objects SA^a	384,120		17,556,551
Cap Gemini SA	476,270		31,749,585
Carrefour SA	2,003,050		143,537,156
Compagnie de Saint-Gobain	1,090,280		122,379,242
Compagnie Generale des Etablissements Michelin Class B	517,980		69,365,082
Credit Agricole SA	2,208,833		85,717,956
Dassault Systemes SA^b	242,500		14,708,533
Essilor International SA	716,980		44,115,642
European Aeronautic Defence and Space Co.^b	1,145,570		34,921,888
France Telecom SA	5,692,930		154,764,357
Gaz de France	610,130		28,688,311


Security	Shares	Value
Groupe Danone	1,515,460	$	111,418,034
Lafarge SA	518,165		88,888,243
Lagardere SCA	468,719		37,418,462
L’Air Liquide SA	803,160		105,224,107
L’Oreal SA	956,420		110,509,194
LVMH Moet Hennessy Louis Vuitton SA	782,009		88,590,692
Neopost SA	175,902		25,749,382
PagesJaunes SA	502,887		10,146,675
Pernod Ricard SA	309,786		65,668,471
PPR SA^b	255,110		44,883,617
PSA Peugeot Citroen SA	565,690		48,272,652
Publicis Groupe SA	549,990		23,903,109
Renault SA	612,596		89,775,381
Safran SA^b	649,485		16,394,037
Sanofi-Aventis	3,426,040		288,418,693
Schneider Electric SA	858,203		116,464,832
SCOR SE^b	634,380		16,368,795
Societe BIC	196,910		14,320,673
Societe Generale Class A	1,204,740		210,162,368
Societe Television Francaise 1	499,550		16,890,083
Sodexho Alliance SA	421,950		28,163,106
STMicroelectronics NV	2,444,400		42,561,336
Suez SA	3,352,320		178,826,441
Technip SA	372,480		30,745,115
Thales SA	347,828		20,111,493
Thomson	1,123,260		18,558,524
Total SA	7,137,105		569,373,814
Unibail-Rodamco	242,500		58,190,156
Valeo SA	340,470		17,700,669
Vallourec SA	163,930		43,326,299
Veolia Environnement	1,136,617		84,778,712
Vinci SA	1,344,420		97,683,618
Vivendi	3,845,260		164,855,456
Zodiac SA	154,747		11,055,169

			4,677,112,487

GERMANY – 7.75%
Adidas AG	793,460		48,680,244
Allianz SE^b	1,510,290		323,314,503
BASF AG	1,636,390		213,469,375
Bayer AG	2,423,060		173,369,433


Security	Shares	Value
Celesio AG	405,460	$	24,648,168
Commerzbank AG	2,144,670		93,003,975
Continental AG	465,600		67,564,049
DaimlerChrysler AG Registered	3,109,820		284,742,510
Deutsche Bank AG	1,739,210		240,214,407
Deutsche Boerse AG	745,180		87,182,788
Deutsche Lufthansa AG	929,740		26,318,911
Deutsche Post AG	2,628,700		77,219,432
Deutsche Telekom AG	9,583,600		165,817,977
Douglas Holding AG	350,455		22,023,960
E.ON AG	2,066,210		327,520,794
Fresenius Medical Care AG & Co. KGaA	686,970		32,479,996
Hochtief AG	219,330		22,340,105
Hypo Real Estate Holding AG	578,120		35,650,748
Infineon Technologies AG^a	2,685,930		44,707,885
Linde AG	428,740		50,976,462
MAN AG	467,620		68,567,687
Merck KGaA	242,698		30,494,213
METRO AG	622,740		48,819,104
Muenchener Rueckversicherungs-Gesellschaft AG	733,320		127,322,637
Puma AG	49,887		20,086,179
RWE AG	1,482,160		158,514,419
Salzgitter AG	134,830		27,898,399
SAP AG	3,058,410		166,622,880
Siemens AG	2,791,660		357,565,010
SolarWorld AG^b	320,100		15,590,049
ThyssenKrupp AG	1,324,130		74,332,075
TUI AG^a	999,100		28,378,074
Volkswagen AG^b	589,910		107,025,825

			3,592,462,273

GREECE – 0.50%
Hellenic Telecommunications Organization SA SP ADR	5,137,180		77,263,187
National Bank of Greece SA ADR	13,104,702		155,028,625

			232,291,812

HONG KONG – 1.88%
Bank of East Asia Ltd.	6,596,000		39,948,941
BOC Hong Kong Holdings Ltd.	13,095,000		33,966,267
Cheung Kong (Holdings) Ltd.	5,820,000		82,545,280


Security	Shares	Value
CLP Holdings Ltd.	5,335,000	$	36,094,969
Esprit Holdings Ltd.	3,880,000		52,551,350
Foxconn International Holdings Ltd.^a,b	7,760,000		22,606,996
Hang Lung Properties Ltd.	9,700,000		36,191,024
Hang Seng Bank Ltd.	2,716,000		43,032,614
Henderson Land Development Co. Ltd.^b	4,850,000		35,323,431
Hong Kong & China Gas Co. Ltd. (The)^b	13,863,120		32,380,493
Hong Kong Exchanges & Clearing Ltd.	5,335,000		88,686,600
Hongkong Electric Holdings Ltd.	4,850,000		24,168,663
Hutchison Telecommunications International Ltd.^b	2,596,000		3,250,701
Hutchison Whampoa Ltd.	6,790,000		72,964,574
Li & Fung Ltd.	7,962,200		28,130,309
Link REIT (The)	9,215,000		19,286,593
MTR Corp. Ltd.^b	8,245,000		20,775,135
New World Development Co. Ltd.^b	10,871,599		26,948,925
PCCW Ltd.	26,190,000		16,163,258
Sun Hung Kai Properties Ltd.	5,820,000		74,811,308
Swire Pacific Ltd. Class A	3,880,000		44,272,033
Techtronic Industries Co. Ltd.	5,108,500		6,070,474
Wharf Holdings Ltd. (The)^b	6,790,000		28,413,672

			868,583,610

IRELAND – 0.86%
Allied Irish Banks PLC	3,110,790		81,970,444
Bank of Ireland	3,585,120		68,459,506
C&C Group PLC	3,372		27,695
CRH PLC	1,844,575		82,944,492
DCC PLC	539,320		15,983,073
DEPFA Bank PLC	1,413,290		28,960,693
Elan Corp. PLC^a	1,622,810		29,366,689
Grafton Group PLC^a	1,448,210		20,101,356
Independent News & Media PLC	3,762,630		16,739,048
Irish Life & Permanent PLC	1,358,970		33,019,013
Kerry Group PLC Class A	687,260		18,335,331
Ryanair Holdings PLC^a	177,504		1,287,775

			397,195,115


Security	Shares	Value
ITALY – 3.67%
Alleanza Assicurazioni SpA^b	1,766,626	$	22,441,323
Arnoldo Mondadori Editore SpA^b	1,154,300		10,839,236
Assicurazioni Generali SpA^b	3,398,383		134,857,902
Atlantia SpA	930,958		31,616,422
Autogrill SpA^b	956,183		20,078,083
Banca Monte dei Paschi di Siena SpA^b	4,521,603		29,028,269
Banca Popolare di Milano Scrl	1,785,770		25,935,628
Banco Popolare SpA^a,b	2,408,510		59,508,845
Bulgari SpA	735,208		10,788,495
Capitalia SpA	5,923,790		56,518,196
Enel SpA	14,150,854		146,924,457
Eni SpA	8,583,094		302,888,401
Fiat SpA	2,268,830		67,610,827
Finmeccanica SpA	1,183,140		35,953,814
Intesa Sanpaolo SpA	25,891,240		197,939,235
Italcementi SpA	468,218		12,978,634
Luxottica Group SpA^b	496,894		18,187,835
Mediaset SpA	3,311,580		34,700,546
Mediobanca SpA^b	1,815,970		38,480,037
Mediolanum SpA^b	1,141,777		8,674,214
Parmalat SpA	5,461,100		19,585,618
Pirelli & C. SpA^a	11,769,194		13,403,737
Snam Rete Gas SpA^b	3,902,102		21,686,053
Telecom Italia SpA	35,349,710		95,422,024
UniCredito Italiano SpA German	26,536,740		227,938,224
Unione di Banche Italiane ScpA	2,310,540		57,467,761

			1,701,453,816

JAPAN – 21.33%
Acom Co. Ltd.^b	291,000		10,387,183
Aderans Co. Ltd.	291,000		5,437,996
Advantest Corp.	582,000		22,680,721
AEON Co. Ltd.	2,280,200		36,559,038
Aeon Credit Service Co. Ltd.	582,090		8,267,032
AIFUL Corp.^b	485,000		12,179,482
Aisin Seiki Co. Ltd.	776,000		30,697,182
Ajinomoto Co. Inc.	1,940,000		23,527,989
All Nippon Airways Co. Ltd.	1,940,000		7,332,129
Alps Electric Co. Ltd.	1,067,000		10,610,406


Security	Shares	Value
Amada Co. Ltd.	1,940,000	$	22,745,895
Asahi Breweries Ltd.	1,580,500		22,473,326
Asahi Glass Co. Ltd.	3,313,000		44,520,220
Asahi Kasei Corp.	3,880,000		27,796,917
Astellas Pharma Inc.	1,746,090		71,858,572
Bank of Kyoto Ltd. (The)	1,940,000		26,265,317
Bank of Yokohama Ltd. (The)	3,880,000		27,112,586
Benesse Corp.	291,000		8,994,079
Bridgestone Corp.	1,940,000		41,059,925
Canon Inc.	3,625,600		190,925,226
Casio Computer Co. Ltd.^b	1,164,000		17,812,187
Central Japan Railway Co.	4,850		50,102,885
Chiba Bank Ltd. (The)	2,910,000		24,611,515
Chubu Electric Power Co. Inc.	2,037,000		51,153,823
Chugai Pharmaceutical Co. Ltd.	970,000		16,741,696
Citizen Watch Co. Ltd.	1,552,000		14,338,387
Coca-Cola West Japan Co. Ltd.^b	348,600		7,260,975
Credit Saison Co. Ltd.	776,000		19,096,124
CSK Corp.	291,000		9,409,566
Dai Nippon Printing Co. Ltd.	1,940,000		28,497,543
Daicel Chemical Industries Ltd.	970,000		6,501,154
Daido Steel Co. Ltd.^b	1,333,000		9,706,555
Daiichi Sankyo Co. Ltd.	2,328,095		64,329,841
Daikin Industries Ltd.	970,000		37,964,137
Daimaru Inc. (The)	970,000		10,949,313
Dainippon Ink & Chemical Inc.	2,910,000		11,413,681
Dainippon Screen Manufacturing Co. Ltd.^b	970,000		7,144,753
Daito Trust Construction Co. Ltd.	388,000		19,356,822
Daiwa House Industry Co. Ltd.	1,940,000		25,532,104
Daiwa Securities Group Inc.	4,850,000		51,895,183
Denso Corp.	1,650,500		62,241,171
Dentsu Inc.	5,820		14,859,783
DOWA HOLDINGS Co. Ltd.	970,000		11,715,113
E*Trade Securities Co. Ltd.^b	6,800		7,424,516
East Japan Railway Co.	11,640		86,421,366
Ebara Corp.^b	1,940,000		9,319,951
Eisai Co. Ltd.	873,000		36,880,612
Electric Power Development Co. Ltd.	485,000		16,660,227


Security	Shares	Value
Elpida Memory Inc.^a	388,000	$	17,336,413
FamilyMart Co. Ltd.	291,000		7,552,094
Fanuc Ltd.	582,500		63,257,254
Fast Retailing Co. Ltd.	35,400		2,006,887
Fuji Electric Holdings Co. Ltd.	1,940,000		8,097,929
Fuji Television Network Inc.	1,922		3,890,329
FUJIFILM Holdings Corp.	1,746,000		76,107,504
Fujikura Ltd.	1,940,000		12,073,573
Fujitsu Ltd.	6,790,000		44,937,807
Fukuoka Financial Group Inc.^a	2,910,000		18,599,168
Furukawa Electric Co. Ltd. (The)	1,180,000		6,550,876
Gunma Bank Ltd.	1,940,000		12,920,842
Hankyu Hanshin Holdings Inc.	3,880,000		19,584,933
Haseko Corp.^a	3,880,000		10,362,743
Hino Motors Ltd.	970,000		6,827,027
Hirose Electric Co. Ltd.	97,500		12,103,053
Hitachi Cable Ltd.	970,000		5,987,906
Hitachi Ltd.	10,672,000		76,455,852
Hokuhoku Financial Group Inc.	4,850,000		15,478,940
Honda Motor Co. Ltd.	5,173,800		186,850,376
Hoya Corp.	1,415,400		44,935,220
IBIDEN Co. Ltd.	485,000		35,764,498
IHI Corp.^b	4,850,000		18,615,462
INPEX Holdings Inc.	3,170		31,948,935
Isetan Co. Ltd.	970,500		15,478,768
Ito En Ltd.	194,000		5,898,291
ITOCHU Corp.	4,850,000		61,223,281
Itochu Techno-Science Corp.	194,000		7,071,432
Japan Airlines Corp.^a,b	1,940,000		3,780,120
Japan Steel Works Ltd. (The)	1,940,000		31,153,404
Japan Tobacco Inc.	14,550		74,176,711
JFE Holdings Inc.	1,940,875		133,830,964
JGC Corp.	970,000		20,081,888
Joyo Bank Ltd. (The)	2,910,000		16,986,100
JS Group Corp.	970,480		18,339,394
JSR Corp.	610,900		15,392,433
Kajima Corp.	2,910,000		11,951,371
Kamigumi Co. Ltd.	970,000		8,407,508
Kaneka Corp.	198,000		1,619,720
Kansai Electric Power Co. Inc. (The)	2,522,000		56,025,616


Security	Shares	Value
Kao Corp.	1,940,000	$	53,443,077
Kawasaki Heavy Industries Ltd.	4,850,000		21,629,782
Kawasaki Kisen Kaisha Ltd.	2,910,000		40,253,391
KDDI Corp.	8,730		57,923,823
Keihin Electric Express Railway Co. Ltd.^b	1,940,000		11,812,875
Keio Corp.	1,940,000		12,203,922
Keyence Corp.	194,081		41,745,386
Kikkoman Corp.^b	970,000		13,189,686
Kinden Corp.	970,000		8,603,033
Kintetsu Corp.^b	5,820,000		17,206,064
Kirin Holdings Co. Ltd.	2,910,000		41,279,889
Kobe Steel Ltd.	9,700,000		37,882,669
Komatsu Ltd.	2,910,000		92,873,640
Konami Corp.	388,000		8,814,849
Konica Minolta Holdings Inc.	1,940,000		28,856,003
Kubota Corp.	3,880,000		32,456,893
Kuraray Co. Ltd.	1,455,000		16,778,356
Kyocera Corp.	582,000		56,212,993
Kyowa Hakko Kogyo Co. Ltd.	1,940,000		19,552,345
Kyushu Electric Power Co. Inc.	1,358,000		32,220,636
Lawson Inc.	291,000		9,971,696
Leopalace21 Corp.	485,000		15,356,738
Marubeni Corp.	5,820,000		56,359,635
Marui Co. Ltd.	1,358,000		15,351,850
Matsushita Electric Industrial Co. Ltd.	6,790,868		124,051,047
Meiji Dairies Corp.	1,940,000		11,454,416
Meiji Seika Kaisha Ltd.	1,940,000		8,554,151
Meitec Corp.^b	194,000		5,539,831
Millea Holdings Inc.	2,425,000		96,336,035
Minebea Co. Ltd.	1,940,000		10,574,560
Mitsubishi Chemical Holdings Corp.	3,670,500		33,478,881
Mitsubishi Corp.	4,365,000		129,778,692
Mitsubishi Electric Corp.	7,158,000		76,290,279
Mitsubishi Estate Co. Ltd.	3,880,000		99,716,961
Mitsubishi Heavy Industries Ltd.	10,670,000		75,545,375
Mitsubishi Materials Corp.	4,850,000		31,283,753
Mitsubishi Rayon Co. Ltd.	1,940,000		14,599,085
Mitsubishi UFJ Financial Group Inc.	28,135		300,100,365


Security	Shares	Value
Mitsubishi UFJ Securities Co. Ltd.	970,000	$	10,517,532
Mitsui & Co. Ltd.	4,850,000		114,462,688
Mitsui Chemicals Inc.	1,940,000		15,104,187
Mitsui Engineering & Shipbuilding Co. Ltd.	2,910,000		16,032,923
Mitsui Fudosan Co. Ltd.	2,910,000		76,742,956
Mitsui Mining & Smelting Co. Ltd.	2,910,000		14,077,688
Mitsui O.S.K. Lines Ltd.	4,850,000		76,335,615
Mitsui Sumitomo Insurance Co. Ltd.	3,880,160		44,972,249
Mitsui Trust Holdings Inc.	2,910,000		25,882,417
Mitsukoshi Ltd.^b	1,940,000		9,271,070
Mizuho Financial Group Inc.	32,015		226,402,637
Murata Manufacturing Co. Ltd.	776,000		58,396,338
Namco Bandai Holdings Inc.	873,000		13,689,086
NEC Corp.	6,790,000		33,475,244
NGK Insulators Ltd.	970,000		29,817,327
NGK Spark Plug Co. Ltd.	970,000		17,760,047
Nichirei Corp.	1,940,000		9,319,951
Nidec Corp.	388,000		25,743,922
Nikko Cordial Corp.	1,940,000		26,086,087
Nikon Corp.	970,000		31,120,817
Nintendo Co. Ltd.	316,200		154,561,290
Nippon Electric Glass Co. Ltd.	970,500		15,169,029
Nippon Express Co. Ltd.	2,910,000		15,812,959
Nippon Meat Packers Inc.	970,000		10,517,532
Nippon Mining Holdings Inc.	3,113,000		31,557,477
Nippon Oil Corp.	4,850,000		43,463,234
Nippon Sheet Glass Co. Ltd.	2,910,000		15,348,591
Nippon Steel Corp.	21,340,000		161,306,849
Nippon Telegraph and Telephone Corp.	16,976		73,427,455
Nippon Yusen Kabushiki Kaisha	4,850,000		49,084,534
Nishimatsu Construction Co. Ltd.^b	1,940,000		6,696,678
Nissan Motor Co. Ltd.	7,441,300		79,497,196
Nisshin Seifun Group Inc.	1,027,200		9,584,842
Nisshin Steel Co. Ltd.	3,880,000		17,075,715
Nissin Food Products Co. Ltd.^b	291,000		8,896,317
Nitto Denko Corp.	582,000		30,697,182


Security	Shares	Value
NOK Corp.	485,000	$	9,857,641
Nomura Holdings Inc.	5,820,000		111,937,177
NSK Ltd.	1,940,000		18,688,783
NTN Corp.	1,940,000		16,000,336
NTT Data Corp.	3,880		16,293,621
NTT DoCoMo Inc.	62,085		86,037,249
Obayashi Corp.	2,910,000		15,470,793
Oji Paper Co. Ltd.	2,910,000		14,004,367
Okumura Corp.^b	970,000		5,173,225
Olympus Corp.	970,000		40,000,840
Omron Corp.	804,900		21,497,350
Oracle Corp. Japan^b	97,000		4,309,663
Oriental Land Co. Ltd.	194,000		10,069,458
ORIX Corp.	291,000		70,315,122
Osaka Gas Co. Ltd.	6,790,000		23,381,346
Resona Holdings Inc.^b	19,400		42,037,543
Ricoh Co. Ltd.	1,940,000		42,119,010
Rohm Co. Ltd.	388,000		32,978,289
Sankyo Co. Ltd.	291,000		11,633,646
SANYO Electric Co. Ltd.^a,b	8,730,000		13,564,440
Sapporo Hokuyo Holdings Inc.	970		10,346,449
Sapporo Holdings Ltd.^b	1,940,000		11,666,233
SBI Holdings Inc.	35,890		11,092,697
Secom Co. Ltd.	873,500		38,515,727
Sega Sammy Holdings Inc.	538		7,754
Seiko Epson Corp.	582,000		17,059,421
Seino Holdings Co. Ltd.	970,000		9,425,860
Sekisui Chemical Co. Ltd.	1,940,000		15,201,949
Sekisui House Ltd.	1,940,000		24,196,027
Seven & I Holdings Co. Ltd.	2,773,280		77,795,785
77 Bank Ltd. (The)	1,940,000		12,823,080
Sharp Corp.	3,880,000		67,292,655
Shimano Inc.	291,000		9,287,364
Shimizu Corp.	1,940,000		11,617,352
Shin-Etsu Chemical Co. Ltd.	1,261,000		93,517,238
Shinsei Bank Ltd.	6,790,000		25,548,398
Shionogi & Co. Ltd.	970,000		15,511,528
Shiseido Co. Ltd.	970,000		20,692,899
Shizuoka Bank Ltd. (The)	1,940,000		19,536,052
Showa Denko K.K.	3,880,000		13,654,054
Showa Shell Sekiyu K.K.	1,067,000		13,245,085


Security	Shares	Value
SMC Corp.	194,000	$	25,841,683
SoftBank Corp.^b	2,522,000		53,271,994
Sojitz Corp.	3,492,000		17,655,768
Sompo Japan Insurance Inc.	2,910,000		33,947,759
Sony Corp.	3,395,000		179,922,312
Stanley Electric Co. Ltd.	610,900		14,545,849
Sumco Corp.	485,000		25,173,645
Sumitomo Chemical Co. Ltd.	5,820,000		43,601,730
Sumitomo Corp.	3,880,000		75,928,274
Sumitomo Electric Industries Ltd.	2,619,000		42,804,972
Sumitomo Heavy Industries Ltd.	1,940,000		24,000,504
Sumitomo Metal Industries Ltd.	14,550,000		84,563,894
Sumitomo Metal Mining Co. Ltd.	1,940,000		47,414,438
Sumitomo Mitsui Financial Group Inc.	22,310		202,366,775
Sumitomo Osaka Cement Co. Ltd.	2,910,000		7,429,891
Sumitomo Realty & Development Co. Ltd.	1,363,000		40,867,677
Sumitomo Trust and Banking Co. Ltd. (The)	4,850,000		41,100,659
Suruga Bank Ltd.	970,000		12,114,307
Suzuken Co. Ltd.	291,040		9,044,203
T&D Holdings Inc.	679,000		44,595,641
Taiheiyo Cement Corp.	2,910,000		12,440,180
Taisei Corp.	3,880,000		13,751,816
Taisho Pharmaceutical Co. Ltd.	970,000		18,819,132
Taiyo Nippon Sanso Corp.	970,000		8,757,821
Takara Holdings Inc.	970,000		6,012,347
Takashimaya Co. Ltd.	975,000		10,989,376
Takeda Pharmaceutical Co. Ltd.	2,813,000		183,335,825
Takefuji Corp.	475,300		14,770,167
TDK Corp.	388,000		33,727,796
Teijin Ltd.	2,910,000		15,837,400
Terumo Corp.	582,000		24,733,717
THK Co. Ltd.	485,000		11,507,370
Tobu Railway Co. Ltd.	2,910,000		12,733,465
Toda Corp.	1,940,000		10,607,147
Toho Co. Ltd.	776,000		14,273,212
Tohoku Electric Power Co. Inc.	1,552,000		34,412,127
Tokuyama Corp.	970,000		14,256,918


Security	Shares	Value
Tokyo Broadcasting System Inc.^b	169,100	$	4,573,149
Tokyo Electric Power Co. Inc. (The)	3,880,000		103,301,558
Tokyo Electron Ltd.	582,000		42,135,304
Tokyo Gas Co. Ltd.	8,730,000		38,053,752
Tokyo Steel Manufacturing Co. Ltd.	485,000		7,967,581
Tokyo Tatemono Co. Ltd.	1,940,000		23,642,044
Tokyu Corp.	3,880,000		24,147,147
Tokyu Land Corp.	1,940,000		18,379,205
TonenGeneral Sekiyu K.K.	1,940,000		18,949,481
Toppan Printing Co. Ltd.	1,940,000		21,067,653
Toray Industries Inc.	4,850,000		38,819,552
Toshiba Corp.	9,700,000		91,407,215
Tosoh Corp.	1,940,000		11,601,058
TOTO Ltd.^b	1,940,000		16,489,145
Toyo Seikan Kaisha Ltd.	679,000		11,918,784
Toyobo Co. Ltd.	2,910,000		7,869,819
Toyoda Gosei Co. Ltd.	291,000		9,287,364
Toyota Industries Corp.	873,500		39,689,539
Toyota Motor Corp.	9,215,000		557,241,843
Toyota Tsusho Corp.	679,000		17,792,634
Trend Micro Inc.	485,000		14,908,663
Ube Industries Ltd.	3,880,000		11,731,407
Uni-Charm Corp.	194,000		10,574,561
UNY Co. Ltd.	972,000		10,310,637
USS Co. Ltd.	135,800		9,078,806
West Japan Railway Co.	6,790		30,737,916
Yahoo! Japan Corp.	58,200		18,159,241
Yamada Denki Co. Ltd.	291,000		29,059,673
Yamaha Corp.	610,700		13,335,741
Yamaha Motor Co. Ltd.	873,000		24,709,276
Yamato Holdings Co. Ltd.	1,940,000		28,921,177
Yaskawa Electric Corp.	970,000		11,861,756
Yokogawa Electric Corp.	970,000		13,263,008

			9,879,172,135

NETHERLANDS – 3.58%
ABN AMRO Holding NV	5,985,224		289,945,806
Aegon NV	4,929,540		90,690,443
Akzo Nobel NV	887,155		73,530,837


Security	Shares	Value
ASML Holding NV^a	1,622,810	$	48,648,298
Corporate Express NV^b	717,800		9,864,908
Hagemeyer NV	2,213,540		11,786,716
Heineken NV	821,325		52,458,472
ING Groep NV	6,252,620		268,064,713
Koninklijke Ahold NV^a	5,318,408		67,996,160
Koninklijke DSM NV	576,180		30,010,187
Koninklijke KPN NV	6,621,516		103,599,945
Koninklijke Philips
Electronics NV	4,020,867		164,623,557
QIAGEN NV^a,b	724,590		12,636,233
Randstad Holding NV^b	170,720		11,294,241
Reed Elsevier NV	2,444,400		45,104,308
Royal Numico NV	592,670		43,451,960
SBM Offshore NV	712,062		29,553,088
TNT NV	1,485,070		64,156,370
Unilever NV	5,446,363		166,699,479
Vedior NV	654,182		17,193,159
Wereldhave NV	213,400		27,394,319
Wolters Kluwer NV CVA	1,034,020		30,573,035

			1,659,276,234

NORWAY – 1.04%
DnB NOR ASA	2,988,570		39,881,134
Frontline Ltd.^b	228,920		10,811,837
Marine Harvest ASA^a,b	9,725,220		12,309,771
Norsk Hydro ASA	2,551,564		99,037,108
Ocean Rig ASA^a,b	929,260		6,591,289
Orkla ASA	2,834,246		54,274,453
Petroleum Geo-Services ASA^a	632,440		15,152,231
Renewable Energy Corp. ASA^a	579,164		23,176,109
Schibsted ASA	393,463		17,434,386
SeaDrill Ltd.^a	908,890		18,536,511
Statoil ASA	2,406,232		71,906,772
Storebrand ASA	1,020,980		15,570,883
Tandberg ASA	419,040		9,679,676
Telenor ASA^a	2,838,220		52,278,895
TGS-NOPEC Geophysical Co. ASA^a,b	523,800		10,277,909
Tomra Systems ASA^b	900,337		7,058,768
Yara International ASA	736,619		19,957,003

			483,934,735


Security	Shares	Value
PORTUGAL – 0.48%
Banco Comercial Portugues SA Class R^b	8,351,828	$	42,985,823
Banco Espirito Santo SA	1,619,719		38,157,192
Brisa-Auto Estradas de Portugal SA^b	2,100,827		28,785,928
Energias de Portugal SA	7,702,869		43,968,781
Portugal Telecom SGPS SA	2,819,094		39,669,665
PT Multimedia Servicos de Telecomunicacoes e Multimedia SGPS SA^b	442,355		7,151,164
Sonae Industria SGPS SA^a	598,490		8,503,743
Sonae SGPS SA	5,150,930		15,159,329

			224,381,625

SINGAPORE – 1.11%
CapitaLand Ltd.^b	5,820,000		28,765,363
Chartered Semiconductor Manufacturing Ltd.^a,b	8,730,000		6,500,972
City Developments Ltd.^b	2,910,000		29,148,901
ComfortDelGro Corp. Ltd.	10,670,000		14,555,273
DBS Group Holdings Ltd.	3,880,000		59,064,878
Fraser and Neave Ltd.	9,700,150		33,560,109
Haw Par Corp. Ltd.	2,934,775		15,568,841
Keppel Corp Ltd.	3,880,000		34,518,436
Oversea-Chinese Banking Corp.	9,701,200		58,177,152
Singapore Airlines Ltd.	2,910,000		37,203,203
Singapore Press Holdings Ltd.	10,670,750		31,644,123
Singapore Technologies Engineering Ltd.	7,760,000		18,921,217
Singapore Telecommunications Ltd.	26,190,285		60,407,920
United Overseas Bank Ltd.	4,850,000		71,913,407
UOL Group Ltd.	4,125,000		14,679,232

			514,629,027

SPAIN – 4.23%
Abertis Infraestructuras SA^b	1,175,840		34,798,440
Abertis Infraestructuras SA Temporary^b,c	57,944		1,714,826
Acciona SA	139,680		36,471,585
Acerinox SA^b	1,016,560		26,689,318


Security	Shares	Value
Actividades de Construcciones y Servicios SA	963,210	$	57,934,451
Altadis SA	1,008,800		66,462,518
Antena 3 de Television SA^a,b	778,910		15,022,912
Banco Bilbao Vizcaya Argentaria SA	11,352,880		281,747,267
Banco Popular Espanol SA	3,363,960		60,920,930
Banco Santander Central Hispano SA	20,058,630		382,204,999
Cintra Concesiones de Infraestructuras de Transporte SA^b	1,290,474		19,837,406
Endesa SA^b	2,750,920		148,778,731
Gas Natural SDG SA	809,950		47,042,144
Grupo Ferrovial SA^b	283,240		25,608,448
Iberdrola SA^b	3,137,950		177,098,635
Iberia Lineas Aereas de Espana SA^b	3,208,336		15,195,388
Industria de Diseno Textil SA^a	786,670		47,779,090
Repsol YPF SA	3,067,776		117,329,145
Telefonica SA	14,769,257		349,550,157
Union Fenosa SA	608,795		33,600,633
Zeltia SA^b	1,100,950		12,478,253

			1,958,265,276

SWEDEN – 2.63%
Assa Abloy AB Class B	1,167,074		25,548,526
Atlas Copco AB Class A	2,402,917		42,171,141
Atlas Copco AB Class B	1,597,877		26,086,239
Boliden AB	974,850		22,715,008
Electrolux AB Series B	1,039,161		26,372,687
Eniro AB^b	700,499		8,732,976
Hennes & Mauritz AB Class B	1,637,425		95,141,199
Hoganas AB Class B^b	258,990		7,476,151
Holmen AB Class B^b	286,150		12,124,820
Husqvarna AB	1,039,161		14,535,824
Lundin Petroleum AB^a^,b	1,121,320		12,023,831
Modern Times Group MTG AB Class B	194,000		12,006,412
Nordea Bank AB	7,019,073		114,381,961
Oriflame Cosmetics SA	250,940		12,830,234
Sandvik AB	3,451,260		70,941,912
Scania AB Class B	1,662,095		40,208,594


Security	Shares	Value
Securitas AB Class B	1,330,840	$	20,541,617
Securitas Direct AB Class B^a,b	1,224,140		3,324,740
Securitas Systems AB Class B	1,188,250		4,197,205
Skandinaviska Enskilda Banken AB Class A	1,752,650		60,867,644
Skanska AB Class B	1,441,420		31,393,815
SKF AB	1,340,540		28,450,589
SSAB Svenskt Stal AB Class A^b	887,550		32,601,942
Svenska Cellulosa AB Class B	1,888,590		33,705,301
Svenska Handelsbanken AB Class A	1,895,750		55,005,139
Swedish Match AB	1,390,716		27,348,264
Tele2 AB Class B	1,257,120		22,155,716
Telefonaktiebolaget LM Ericsson AB Class B	49,563,120		188,310,285
TeliaSonera AB	6,948,110		53,364,504
Trelleborg AB Class B	646,155		16,590,453
Volvo AB Class A	1,726,571		32,479,389
Volvo AB Class B	3,560,335		66,314,734

			1,219,948,852

SWITZERLAND – 6.60%
ABB Ltd. Registered	6,974,300		171,256,910
Adecco SA Registered	467,748		32,785,893
Ciba Specialty Chemicals AG Registered	433,590		26,536,400
Clariant AG Registered^a	959,330		15,026,899
Compagnie Financiere Richemont AG Class A	1,787,306		113,321,795
Credit Suisse Group Registered	3,828,493		254,511,750
Geberit AG Registered	169,965		27,908,496
Givaudan SA Registered	32,980		31,078,046
Holcim Ltd. Registered	706,197		75,643,006
Kuoni Reisen Holding AG Registered	19,400		11,542,629
Logitech International SA Registered^a	717,967		19,568,986
Lonza Group AG Registered	203,545		19,315,971
Nestle SA Registered	1,312,410		507,122,029
Nobel Biocare Holding AG	85,269		25,862,710
Novartis AG Registered	7,704,710		418,080,075
OC Oerlikon Corp. AG Registered^a,b	37,830		16,943,967


Security	Shares	Value
Phonak Holding AG Registered	175,570	$	17,011,353
Roche Holding AG	2,366,800		422,066,877
SGS SA Registered	17,275		20,958,534
Sulzer AG Registered	16,301		21,700,351
Swatch Group AG (The) Class B	133,581		40,682,596
Swatch Group AG (The) Registered	373,781		22,037,362
Swiss Life Holding	120,280		29,935,067
Swiss Reinsurance Co. Registered	1,185,340		102,439,222
Syngenta AG Registered	363,163		68,806,019
Synthes Inc.	234,740		27,543,035
UBS AG Registered	6,696,880		375,913,449
Zurich Financial Services AG Registered	486,060		142,982,583

			3,058,582,010

UNITED KINGDOM – 22.73%
Acergy SA	776,970		20,983,501
Aegis Group PLC	4,441,677		11,552,909
Aggreko PLC	1,457,910		16,338,441
AMEC PLC	1,392,920		18,171,702
Anglo American PLC	4,502,640		265,704,082
ARM Holdings PLC	5,641,520		16,995,159
AstraZeneca PLC	5,112,330		265,841,975
Aviva PLC	8,415,720		118,169,042
BAE Systems PLC	10,888,250		93,480,104
Balfour Beatty PLC	1,786,740		15,820,972
Barclays PLC^d	21,121,080		300,004,443
Barratt Developments PLC	982,610		18,669,263
BBA Aviation PLC	1,821,660		9,124,701
Berkeley Group Holdings PLC (The)^a	496,775		16,636,092
BG Group PLC	11,379,295		186,836,235
BHP Billiton PLC	8,015,391		239,917,457
Biffa PLC	1,277,490		6,470,339
BP PLC	64,529,964		757,264,869
British Airways PLC^a	2,054,460		16,605,130
British American Tobacco PLC	5,027,631		163,462,361
British Energy Group PLC	3,589,000		36,501,602
British Land Co. PLC	2,032,320		51,333,114
British Sky Broadcasting Group PLC	3,796,082		51,296,959


Security	Shares	Value
BT Group PLC	27,403,908	$	175,411,250
Bunzl PLC	1,521,930		20,380,484
Burberry Group PLC	1,736,300		22,580,790
Cable & Wireless PLC	8,250,820		28,468,802
Cadbury Schweppes PLC	6,460,841		81,398,262
Capita Group PLC	2,279,500		33,373,978
Carnival PLC	629,530		27,810,600
Cattles PLC	1,691,680		12,753,415
Centrica PLC	12,337,146		90,313,585
Charter PLC^a	644,080		15,142,848
Close Brothers Group PLC	733,320		12,137,214
Cobham PLC	4,953,512		19,351,470
Compass Group PLC	7,753,210		52,857,725
Cookson Group PLC	808,010		11,386,692
Daily Mail & General Trust PLC Class A	1,194,290		17,485,505
De La Rue PLC	756,858		11,488,661
Diageo PLC	8,899,034		183,002,814
DSG International PLC	8,133,450		25,865,658
Electrocomponents PLC	1,795,470		9,267,151
Emap PLC	958,360		16,436,355
EMI Group PLC^b	3,211,670		16,576,736
Enterprise Inns PLC	2,571,981		35,461,083
Experian Group Ltd.	3,522,070		40,795,027
First Choice Holidays PLC	2,589,900		16,314,700
FKI PLC	2,909,030		6,591,093
Friends Provident PLC	6,319,754		24,014,645
G4S PLC	3,843,140		17,044,130
GKN PLC	2,898,360		22,792,800
GlaxoSmithKline PLC	18,943,130		483,092,011
Great Portland Estates PLC	1,801,290		23,773,723
Hammerson PLC	1,299,800		31,695,103
Hanson PLC	2,557,545		56,492,035
Hays PLC	5,939,586		19,552,648
HBOS PLC	12,510,171		246,459,435
Home Retail Group PLC	3,229,130		27,034,425
HSBC Holdings PLC	37,878,500		703,514,994
ICAP PLC	2,117,077		20,638,875
IMI PLC	1,584,010		18,990,846
Imperial Chemical Industries PLC	4,067,560		51,576,628
Imperial Tobacco Group PLC	2,259,276		99,577,961


Security	Shares	Value
Inchcape PLC	2,254,635	$	21,338,481
InterContinental Hotels Group PLC	1,225,015		28,228,568
International Personal Finance PLC^a	980,345		4,382,642
International Power PLC	5,242,850		44,079,822
Invensys PLC^a	2,838,527		22,005,030
INVESCO PLC	2,749,515		34,807,957
Investec PLC	1,219,290		15,349,093
ITV PLC	13,805,621		28,698,948
J Sainsbury PLC	5,034,455		58,670,566
Johnson Matthey PLC	824,500		28,616,263
Kesa Electricals PLC	2,417,240		15,914,726
Kingfisher PLC	8,769,770		38,002,453
Land Securities Group PLC	1,718,840		59,097,648
Legal & General Group PLC	22,220,760		63,350,635
Lloyds TSB Group PLC	18,530,289		210,111,963
LogicaCMG PLC	6,110,030		19,213,584
London Stock Exchange Group PLC^b	947,690		26,055,445
Man Group PLC	6,082,372		70,203,005
Marks & Spencer Group PLC	5,785,390		74,299,195
Meggitt PLC	2,790,874		17,523,994
Misys PLC	2,078,710		10,137,702
Mitchells & Butlers PLC	2,578,747		40,951,716
Mondi PLC^a	1,222,919		10,729,128
National Express Group PLC	594,610		14,003,933
National Grid PLC	8,848,145		126,308,608
Next PLC	905,100		34,926,568
Old Mutual PLC	17,660,297		58,710,488
Pearson PLC	2,756,740		44,646,613
Persimmon PLC	1,048,570		24,737,969
Provident Financial PLC	506,173		9,359,976
Prudential PLC	8,004,440		111,174,162
Punch Taverns PLC	1,056,330		24,921,043
Reckitt Benckiser PLC	1,937,300		104,401,031
Reed Elsevier PLC	4,606,530		57,334,283
Rentokil Initial PLC	6,265,230		19,956,251
Resolution PLC	2,360,980		31,664,354
Reuters Group PLC	4,437,206		55,993,238
Rexam PLC	1,750,850		17,895,808


Security	Shares	Value
Rio Tinto PLC	3,386,040	$	248,114,529
Rolls-Royce Group PLC^a	5,899,921		61,143,566
Royal & Sun Alliance Insurance Group PLC	10,771,850		29,199,843
Royal Bank of Scotland Group PLC	31,172,922		375,318,747
Royal Dutch Shell PLC Class A	12,233,988		480,048,054
Royal Dutch Shell PLC Class B	9,008,390		358,787,778
SABMiller PLC	2,909,030		75,250,778
Sage Group PLC	4,482,370		21,063,175
Scottish & Newcastle PLC	2,954,375		35,600,386
Scottish & Southern Energy PLC	2,816,880		82,941,354
Serco Group PLC	1,890,530		16,903,266
Sergo PLC	2,202,870		24,217,010
Severn Trent PLC	799,961		20,969,734
Signet Group PLC	7,382,670		14,739,420
Smith & Nephew PLC	3,231,070		38,704,776
Smiths Group PLC	1,246,412		26,518,118
Smiths Group PLC Deferred^c	1,829,173		372
Stagecoach Group PLC	1,892,384		8,190,742
Stagecoach Group PLC Class C Deferred^c	3,270,720		665
Standard Life PLC	6,866,630		43,046,040
Tate & Lyle PLC	1,722,720		19,901,213
TaylorWimpey PLC	4,589,969		30,802,571
Tesco PLC	26,237,970		217,399,525
3i Group PLC	1,458,938		31,958,765
Tomkins PLC	3,064,230		14,772,771
Trinity Mirror PLC	1,267,790		13,190,209
Unilever PLC	3,957,975		124,663,448
United Business Media PLC	1,000,330		15,702,766
United Utilities PLC	2,953,650		40,363,211
Vodafone Group PLC	175,859,060		536,031,604
Whitbread PLC	946,738		32,223,968
William Hill PLC	1,990,831		24,596,446
Wolseley PLC	2,167,950		47,710,296
WPP Group PLC	3,875,150		56,105,802
Xstrata PLC	2,030,355		131,942,537
Yell Group PLC	2,802,330		26,479,307

			10,528,488,290


TOTAL COMMON STOCKS (Cost: $33,606,645,852)			45,951,570,023


Security	Shares	Value
PREFERRED STOCKS – 0.48%

GERMANY – 0.32%
Henkel KGaA	655,305	$	35,737,048
Porsche AG	30,070		55,087,840
ProSiebenSat.1 Media AG	341,440		12,436,986
Volkswagen AG	388,090		44,119,232

			147,381,106

ITALY – 0.16%
Intesa Sanpaolo SpA RNC	3,334,960		23,966,565
Telecom Italia SpA RNC	22,806,640		49,606,783

			73,573,348


TOTAL PREFERRED STOCKS (Cost: $143,674,371)			220,954,454

RIGHTS – 0.00%

SWEDEN – 0.00%
SSAB Svenskt Stal AB Class A^c	884,805		3,036,719

			3,036,719


TOTAL RIGHTS (Cost: $0)			3,036,719

SHORT-TERM INVESTMENTS – 2.81%

MONEY MARKET FUNDS – 2.81%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares 5.31%^d,e	186,002		186,002
BGI Cash Premier Fund LLC 5.34%^d,e,f	1,301,813,682		1,301,813,682

			1,301,999,684


TOTAL SHORT-TERM INVESTMENTS (Cost: $1,301,999,684)			1,301,999,684


TOTAL INVESTMENTS IN SECURITIES – 102.48% (Cost: $35,052,319,907)			47,477,560,880

Other Assets, Less Liabilities – (2.48)%			(1,151,007,680	)


NET ASSETS – 100.00%		$	46,326,553,200

ADR – American Depositary Receipts

SP ADR – Sponsored American Depositary Receipts

^a	Non-income earning security.

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

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

^d	Affiliated issuer. See Note 2.

^e	The rate quoted is the annualized seven-day yield of the fund at period end.

^f	This security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.


Security	Shares	Value
COMMON STOCKS – 99.34%

AUSTRALIA – 6.16%
Alinta Ltd.	45,570	$	577,466
Alumina Ltd.	88,400		552,910
AMP Ltd.	65,392		563,640
Aristocrat Leisure Ltd.	28,448		332,708
Asciano Group^a	44,511		363,064
ASX Ltd.	12,325		517,971
AXA Asia Pacific Holdings Ltd.	50,463		317,790
Babcock & Brown Ltd.	18,751		452,897
BHP Billiton Ltd.	253,113		8,024,087
Billabong International Ltd.	14,952		207,792
Brambles Ltd.^a	128,080		1,215,907
Cochlear Ltd.	4,641		245,742
Coles Group Ltd.	91,375		1,135,989
Computershare Ltd.	37,056		317,178
CSL Ltd.	13,583		1,035,193
Fortescue Metals Group Ltd.^a	8,768		248,135
Foster’s Group Ltd.	167,779		849,581
Harvey Norman Holdings Ltd.	59,364		269,066
James Hardie Industries NV	33,473		216,245
Leighton Holdings Ltd.	14,144		475,048
Lend Lease Corp. Ltd.	34,068		543,800
Macquarie Bank Ltd.	18,519		1,309,034
Macquarie Communications Infrastructure Group	31,472		160,982
National Australia Bank Ltd.	59,184		1,945,192
Newcrest Mining Ltd.	25,891		552,367
Orica Ltd.	24,685		591,146
Origin Energy Ltd.	78,187		658,518
Paladin Resources Ltd.^a	39,648		243,908
Publishing & Broadcasting Ltd.	13,376		212,249
QBE Insurance Group Ltd.	58,633		1,505,596
Rio Tinto Ltd.	20,859		1,663,525
Toll Holdings Ltd.	44,511		542,690
Woodside Petroleum Ltd.	34,143		1,266,394
Woolworths Ltd.	90,089		2,106,467
WorleyParsons Ltd.	11,164		324,264

			31,544,541


Security	Shares	Value
AUSTRIA – 0.70%
Andritz AG	3,740	$	259,303
Erste Bank der Oesterreichischen Sparkassen AG	6,944		527,259
Oesterreichische Elektrizitaetswirtschafts AG Class A	7,140		351,849
Raiffeisen International Bank Holding AG	3,179		488,073
RHI AG^a	3,716		193,089
Telekom Austria AG	27,024		665,483
voestalpine AG	9,931		841,879
Wienerberger AG	3,888		273,289

			3,600,224

BELGIUM – 1.23%
Delhaize Group	5,920		555,096
Groupe Bruxelles Lambert SA	6,272		769,598
InBev	13,532		1,099,727
KBC Group NV	13,957		1,835,803
Mobistar SA	2,870		227,112
Omega Pharma SA	1,921		166,504
Solvay SA	5,243		802,375
UCB SA	6,025		340,862
Umicore	2,160		496,728

			6,293,805

DENMARK – 0.96%
DSV A/S	14,960		339,891
FLS Industries A/S Class B	3,701		331,580
GN Store Nord A/S^a	18,615		222,596
Novo Nordisk A/S Class B	17,697		1,872,009
Novozymes A/S Class B	4,420		526,912
Topdanmark A/S^a	1,958		334,993
Vestas Wind Systems A/S^a	14,018		949,018
William Demant Holding A/S^a	3,094		310,211

			4,887,210

FINLAND – 2.01%
Cargotec Corp. Class B	5,236		275,009
Elisa OYJ Class A	14,471		413,010
Kone OYJ Class B	5,899		400,432
Konecranes OYJ	6,544		269,181
Nokia OYJ	298,192		8,641,173
Nokian Renkaat OYJ	9,299		310,331

			10,309,136


Security	Shares	Value
FRANCE – 9.53%
Accor SA	15,283	$	1,324,245
Aeroports de Paris	2,544		286,981
ALSTOM	8,024		1,469,613
Atos Origin SA^a	5,525		328,078
Bouygues SA	15,909		1,287,894
Business Objects SA^a	8,024		366,744
Cap Gemini SA	9,968		664,497
Carrefour SA	42,516		3,046,667
Compagnie de Saint-Gobain	23,568		2,645,407
Compagnie Generale des Etablissements Michelin Class B	10,523		1,409,183
Dassault Systemes SA	4,677		283,678
Essilor International SA	15,368		945,590
European Aeronautic Defence and Space Co.	9,808		298,990
Gaz de France	13,192		620,288
Groupe Danone	34,934		2,568,380
Hermes International	4,992		507,509
Lagardere SCA	8,976		716,566
L’Air Liquide SA	17,204		2,253,941
L’Oreal SA	20,010		2,312,048
LVMH Moet Hennessy Louis Vuitton SA	17,495		1,981,939
Neopost SA	2,754		403,144
Pernod Ricard SA	6,588		1,396,525
PPR SA	5,344		940,214
Publicis Groupe SA	10,507		456,645
Safran SA^b	14,280		360,450
Sanofi-Aventis	47,072		3,962,722
Schneider Electric SA	16,806		2,280,705
Societe Television Francaise 1	10,286		347,776
Sodexho Alliance SA	7,939		529,890
STMicroelectronics NV	50,388		877,344
Suez SA	73,776		3,935,513
Technip SA	7,735		638,460
Thales SA	7,497		433,478
Thomson	21,607		356,991
Unibail-Rodamco	5,472		1,313,058
Vallourec SA	3,216		849,981
Veolia Environnement	24,704		1,842,638
Vinci SA	31,242		2,269,999
Zodiac SA	4,097		292,691

			48,806,462


Security	Shares	Value
GERMANY – 7.79%
Adidas AG	15,470	$	949,113
Arcandor AG^a,b	4,960		152,967
BASF AG	33,984		4,433,261
Bayer AG	52,513		3,757,294
Beiersdorf AG	6,375		447,665
Bilfinger Berger AG	3,520		304,520
Celesio AG	6,953		422,677
Commerzbank AG	16,303		706,982
Continental AG	9,646		1,399,748
Deutsche Boerse AG	15,810		1,849,701
Deutsche Postbank AG	5,117		398,831
Fresenius Medical Care AG & Co. KGaA	14,433		682,393
Hochtief AG	3,384		344,681
Infineon Technologies AG^a	57,018		949,077
IVG Immobilien AG	7,984		294,315
Linde AG	8,129		966,524
MAN AG	9,289		1,362,057
Merck KGaA	4,656		585,011
METRO AG	11,687		916,191
Premiere AG^a	7,296		186,160
Puma AG	901		362,773
Rheinmetall AG	3,351		301,413
RWE AG	31,909		3,412,612
Salzgitter AG	2,064		427,073
SAP AG	65,120		3,547,753
Siemens AG	61,470		7,873,280
SolarWorld AG	6,176		300,794
Volkswagen AG	12,257		2,223,755
Wincor Nixdorf AG	3,904		349,818

			39,908,439

GREECE – 0.55%
Coca-Cola Hellenic Bottling Co. SA ADR	11,628		520,818
Hellenic Telecommunications Organization SA SP ADR	46,665		701,842
National Bank of Greece SA ADR	134,472		1,590,804

			2,813,464


Security	Shares	Value
HONG KONG – 1.85%
Bank of East Asia Ltd.	125,800	$	761,913
Belle International Holdings Ltd.^a	224,000		260,457
Esprit Holdings Ltd.^b	76,500		1,036,128
Foxconn International Holdings Ltd.^a	155,000		451,557
Hang Lung Properties Ltd.	153,000		570,848
Hong Kong & China Gas Co. Ltd. (The)	248,300		579,962
Hong Kong Exchanges & Clearing Ltd.	79,500		1,321,572
Kingboard Chemical Holdings Co. Ltd.	51,000		283,795
Li & Fung Ltd.^b	171,200		604,847
Link REIT (The)	192,000		401,848
Melco International Development Ltd.^b	3,000		4,355
New World Development Co. Ltd.	192,000		475,937
PCCW Ltd.^b	480,000		296,234
Shangri-La Asia Ltd.^b	136,000		323,915
Sun Hung Kai Properties Ltd.	102,000		1,311,126
Television Broadcasts Ltd.	37,000		254,349
Tencent Holdings Ltd.	80,000		370,037
Tingyi (Cayman Islands) Holding Corp.	128,000		151,613

			9,460,493

IRELAND – 0.73%
C&C Group PLC	25,704		211,110
CRH PLC	40,124		1,804,245
Elan Corp. PLC^a	16,677		301,790
Grafton Group PLC^a	21,301		295,661
IAWS Group PLC	10,799		226,168
Independent News & Media PLC	61,904		275,396
Kerry Group PLC Class A	13,107		349,680
Kingspan Group PLC	12,020		290,406

			3,754,456

ITALY – 3.67%
Alleanza Assicurazioni SpA	33,694		428,012
Assicurazioni Generali SpA	76,503		3,035,866
Atlantia SpA	22,457		762,666
Autogrill SpA	11,985		251,663
Banca Monte dei Paschi di Siena SpA^b	87,363		560,862


Security	Shares	Value
Banca Popolare di Milano Scrl	32,555	$	472,812
Bulgari SpA	21,086		309,417
Capitalia SpA	128,741		1,228,303
Fiat SpA	49,465		1,474,050
Finmeccanica SpA	25,120		763,358
Intesa Sanpaolo SpA	487,568		3,727,471
Luxottica Group SpA	10,999		402,597
Mediaset SpA	60,435		633,271
Mediobanca SpA	40,664		861,662
Parmalat SpA	101,168		362,828
Seat Pagine Gialle SpA	491,393		274,438
Telecom Italia SpA^b	692,352		1,868,916
Terna SpA	84,856		291,259
Unione di Banche Italiane ScpA	43,911		1,092,155

			18,801,606

JAPAN – 21.51%
Advantest Corp.	11,200		436,467
Aeon Mall Co. Ltd.	6,400		192,433
Aisin Seiki Co. Ltd.	14,200		561,727
All Nippon Airways Co. Ltd.	68,000		257,002
Asahi Glass Co. Ltd.	68,000		913,787
Asahi Kasei Corp.	57,000		408,357
ASICS Corp.	17,000		232,444
Canon Inc.	74,800		3,938,991
Casio Computer Co. Ltd.	19,100		292,279
Central Japan Railway Co.	109		1,126,024
Chiba Bank Ltd. (The)	64,000		541,284
Chiyoda Corp.	17,000		337,673
Chugai Pharmaceutical Co. Ltd.	22,400		386,612
Daifuku Co. Ltd.	8,500		105,585
Daikin Industries Ltd.	17,600		688,834
Daimaru Inc. (The)	32,000		361,214
Dainippon Screen Manufacturing Co. Ltd.	17,000		125,217
Daiwa Securities Group Inc.	64,000		684,802
Denso Corp.	35,700		1,346,265
DOWA HOLDINGS Co. Ltd.	34,000		410,633
E*Trade Securities Co. Ltd.	136		148,490
East Japan Railway Co.	144		1,069,130
Elpida Memory Inc.^a	8,500		379,793
Fanuc Ltd.	14,300		1,552,925


Security	Shares	Value
FUJIFILM Holdings Corp.	37,400	$	1,630,252
Fujitsu Ltd.	136,000		900,080
Furukawa Electric Co. Ltd. (The)	22,000		122,135
Hankyu Hanshin Holdings Inc.	85,000		429,051
Haseko Corp.^a	88,000		235,031
Hikari Tsushin Inc.	3,300		131,928
Hirose Electric Co. Ltd.	2,200		273,095
Hitachi Chemical Co. Ltd.	9,100		193,747
Hitachi Construction Machinery Co. Ltd.	8,500		340,528
Hitachi Ltd.	76,000		544,476
Hoya Corp.	31,000		984,168
IBIDEN Co. Ltd.	10,200		752,161
IHI Corp.	91,000		349,280
INPEX Holdings Inc.	53		534,162
Isetan Co. Ltd.	17,600		280,707
JAFCO Co. Ltd.	300		13,808
Japan Steel Works Ltd. (The)	23,000		369,344
Japan Tobacco Inc.	317		1,616,084
JFE Holdings Inc.	21,600		1,489,405
JGC Corp.	16,000		331,248
JSR Corp.	13,600		342,670
JTEKT Corp.	17,000		296,267
Kawasaki Heavy Industries Ltd.	103,000		459,354
KDDI Corp.	192		1,273,926
Keihin Electric Express Railway Co. Ltd.^b	48,000		292,277
Keisei Electric Railway Co. Ltd.	34,000		174,476
Keyence Corp.	4,050		871,125
Kintetsu Corp.	144,000		425,717
KK DaVinci Advisors^a	128		105,784
Kobe Steel Ltd.	136,000		531,138
Komatsu Ltd.	66,300		2,115,987
Konami Corp.	9,600		218,099
Konica Minolta Holdings Inc.	36,500		542,909
Kubota Corp.	80,000		669,214
Kuraray Co. Ltd.	17,000		196,036
Kurita Water Industries Ltd.	12,800		407,441
Leopalace21 Corp.	6,800		215,311
Matsushita Electric Industrial Co. Ltd.	153,000		2,794,902


Security	Shares	Value
Mediceo Paltac Holdings Co. Ltd.	8,500	$	125,360
Millea Holdings Inc.	57,500		2,284,256
Minebea Co. Ltd.	34,000		185,327
Mitsubishi Chemical Holdings Corp.	32,000		291,874
Mitsubishi Electric Corp.	134,000		1,428,178
Mitsubishi Estate Co. Ltd.	96,000		2,467,224
Mitsubishi Heavy Industries Ltd.	151,000		1,069,105
Mitsubishi Rayon Co. Ltd.	39,000		293,487
Mitsubishi UFJ Lease & Finance Co. Ltd.	4,320		192,661
Mitsui Chemicals Inc.	56,000		435,997
Mitsui Engineering & Shipbuilding Co. Ltd.	57,000		314,047
Mitsui Fudosan Co. Ltd.	68,500		1,806,492
Mitsui Mining & Smelting Co. Ltd.	34,000		164,482
Mitsukoshi Ltd.	64,000		305,850
Mizuho Financial Group Inc.	704		4,978,524
Murata Manufacturing Co. Ltd.	15,300		1,151,371
NGK Insulators Ltd.	16,000		491,832
NGK Spark Plug Co. Ltd.	17,000		311,259
NHK Spring Co. Ltd.	17,000		153,773
Nidec Corp.	9,600		636,963
Nikon Corp.	20,000		641,666
Nintendo Co. Ltd.	7,300		3,568,303
Nippon Electric Glass Co. Ltd.	24,500		382,938
Nissan Chemical Industries Ltd.	17,000		212,027
Nitori Co. Ltd.	3,400		175,047
Nitto Denko Corp.	13,600		717,322
NOK Corp.	10,200		207,315
Nomura Holdings Inc.	124,800		2,400,302
Nomura Research Institute Ltd.	8,500		270,566
NTT Data Corp.	91		382,144
Odakyu Electric Railway Co. Ltd.	89,000		522,496
Oki Electric Industry Co. Ltd.^a	64,000		123,630
Okuma Corp.	16,000		263,520
Olympus Corp.	17,000		701,046
Omron Corp.	12,800		341,864
Oriental Land Co. Ltd.	4,100		212,808
ORIX Corp.	6,630		1,602,025
OSG Corp.	7,500		105,825
Otsuka Corp.	1,600		151,178


Security	Shares	Value
Rakuten Inc.	31	$	9,555
Resona Holdings Inc.	26		56,339
Round One Corp.	80		180,070
Ryohin Keikaku Co. Ltd.	4,800		287,843
SANYO Electric Co. Ltd.^a,b	8,000		12,430
Secom Co. Ltd.	15,300		674,631
Seiko Epson Corp.	7,400		216,907
Seven & I Holdings Co. Ltd.	73,600		2,064,620
Shimamura Co. Ltd.	1,700		164,624
Shimano Inc.	6,800		217,024
Shimizu Corp.	64,000		383,253
Shin-Etsu Chemical Co. Ltd.	28,900		2,143,258
Shinko Electric Industries Co. Ltd.	6,400		156,688
Shionogi & Co. Ltd.	33,000		527,712
Shiseido Co. Ltd.	24,000		511,989
Showa Denko K.K.	85,000		299,122
SMC Corp.	3,900		519,498
SoftBank Corp.^b	56,000		1,182,883
Sony Corp.	73,600		3,900,525
Stanley Electric Co. Ltd.	11,900		283,345
Sumco Corp.	8,400		435,997
Sumitomo Chemical Co. Ltd.	128,000		958,938
Sumitomo Electric Industries Ltd.	52,900		864,598
Sumitomo Heavy Industries Ltd.	48,000		593,827
Sumitomo Metal Industries Ltd.	319,000		1,854,013
Sumitomo Metal Mining Co. Ltd.	53,500		1,307,563
Sumitomo Mitsui Financial Group Inc.	496		4,499,055
Sumitomo Realty & Development Co. Ltd.	43,000		1,289,296
Sumitomo Titanium Corp.	1,600		139,487
Suruga Bank Ltd.	17,000		212,313
T&D Holdings Inc.	11,900		781,573
Taiyo Nippon Sanso Corp.	48,000		433,377
Takashimaya Co. Ltd.	32,000		360,677
TDK Corp.	8,500		738,882
Teijin Ltd.	61,000		331,987
Terumo Corp.	13,600		577,970
THK Co. Ltd.	6,900		163,713
Tobu Railway Co. Ltd.	80,000		350,061
Toho Titanium Co. Ltd.^b	1,800		67,274


Security	Shares	Value
Tokuyama Corp.	17,000	$	249,863
Tokyo Electron Ltd.	11,900		861,529
Tokyo Seimitsu Co. Ltd.^b	3,200		108,848
Tokyo Tatemono Co. Ltd.	32,000		389,972
Tokyu Corp.	75,000		466,762
Tokyu Land Corp.	41,000		388,426
TonenGeneral Sekiyu K.K.	19,000		185,588
Toray Industries Inc.	96,000		768,387
Toshiba Corp.	209,000		1,969,496
Toyoda Gosei Co. Ltd.	5,100		162,768
Toyota Tsusho Corp.	15,400		403,544
Trend Micro Inc.	8,500		261,286
Ube Industries Ltd.	74,000		223,743
Ushio Inc.	10,200		194,894
USS Co. Ltd.	3,280		219,282
Yahoo! Japan Corp.	422		131,670
Yakult Honsha Co. Ltd.	8,500		200,962
Yamada Denki Co. Ltd.	7,140		713,011
Yaskawa Electric Corp.	17,000		207,886
Yokogawa Electric Corp.	12,800		175,017
Zeon Corp.	11,000		116,315

			110,173,541

NETHERLANDS – 4.23%
Akzo Nobel NV	19,992		1,657,014
Arcelor Mittal	41,424		2,593,039
ASML Holding NV^a	36,320		1,088,794
Fugro NV	4,454		299,478
Hagemeyer NV	26,468		140,937
Heineken NV	18,054		1,153,119
Koninklijke Ahold NV^a	114,801		1,467,738
Koninklijke KPN NV	84,464		1,321,520
Koninklijke Philips Electronics NV	85,323		3,493,320
QIAGEN NV^a	11,934		208,119
Randstad Holding NV	3,455		228,571
Reed Elsevier NV	55,981		1,032,967
Royal Numico NV	12,835		941,006
SBM Offshore NV	10,918		453,136
TNT NV	30,927		1,336,074
Unilever NV	107,194		3,280,939
Vedior NV	12,737		334,753
Wolters Kluwer NV CVA	21,981		649,916

			21,680,440


Security	Shares	Value
NEW ZEALAND – 0.16%
Fisher & Paykel Healthcare Corp. Ltd.	68,462	$	177,925
Fletcher Building Ltd.	29,472		283,263
Sky City Entertainment Group Ltd.	89,614		335,563

			796,751

NORWAY – 1.07%
Aker Kvaerner ASA	11,900		310,652
Det Norske Oljeselskap AS^a	68,906		129,822
Ocean Rig ASA^a	24,864		176,362
Orkla ASA	33,405		639,690
Petroleum Geo-Services ASA^a	13,770		329,907
Renewable Energy Corp. ASA^a	17,088		683,802
SeaDrill Ltd.^a	17,760		362,209
Statoil ASA	30,040		897,702
Storebrand ASA	18,688		285,009
Tandberg ASA	9,952		229,888
Telenor ASA^a	61,872		1,139,658
TGS-NOPEC Geophysical Co. ASA^a	8,500		166,785
Tomra Systems ASA	16,270		127,559

			5,479,045

PORTUGAL – 0.37%
Banco BPI SA Registered	39,703		367,932
Brisa-Auto Estradas de Portugal SA	35,107		481,043
Energias de Portugal SA	133,005		759,206
Sonae SGPS SA	95,504		281,071

			1,889,252

SINGAPORE – 1.08%
CapitaLand Ltd.	108,000		533,790
City Developments Ltd.	41,000		410,689
Keppel Corp Ltd.	102,000		907,443
Keppel Land Ltd.^b	32,000		176,085
SembCorp Industries Ltd.	102,000		386,504
Singapore Exchange Ltd.	127,000		828,561
Singapore Press Holdings Ltd.	224,000		664,272
Singapore Telecommunications Ltd.	544,000		1,254,737
Venture Corp. Ltd.	34,000		342,812

			5,504,893


Security	Shares	Value
SPAIN – 4.09%
Abertis Infraestructuras SA^b	18,479	$	546,877
Abertis Infraestructuras SA Temporary^c	924		27,345
Acciona SA	2,244		585,927
Acerinox SA^b	18,819		494,084
Actividades de Construcciones y Servicios SA	18,479		1,111,461
Altadis SA	19,890		1,310,408
Antena 3 de Television SA^a,b	12,544		241,937
Banco Bilbao Vizcaya Argentaria SA	158,384		3,930,655
Banco Popular Espanol SA	35,123		636,073
Cintra Concesiones de Infraestructuras de Transporte SA	17,434		267,999
Fomento de Construcciones y
Contratas SA	4,064		371,887
Gamesa Corporacion Tecnologica SA	15,951		654,162
Grupo Ferrovial SA^b	4,879		441,123
Indra Sistemas SA	15,410		405,004
Industria de Diseno Textil SA^a	17,102		1,038,705
Mapfre SA	50,490		237,058
SacyrVallehermoso SA^b	6,272		291,905
Sogecable SA^a,b	4,377		171,655
Telefonica SA	326,192		7,720,122
Union Fenosa SA	7,984		440,653
Zardoya Otis SA Temporary^c	734		22,757

			20,947,797

SWEDEN – 2.58%
Alfa Laval AB	7,888		503,983
Assa Abloy AB Class B	25,776		564,265
Atlas Copco AB Class A	50,286		882,518
Atlas Copco AB Class B	33,050		539,560
Boliden AB	22,219		517,726
Getinge AB Class B	17,392		387,183
Hennes & Mauritz AB Class B	35,938		2,088,147
Husqvarna AB	25,280		353,618
Lundin Petroleum AB^a	19,465		208,722
Modern Times Group MTG AB Class B	4,471		276,704
Sandvik AB	64,896		1,333,961


Security	Shares	Value
Securitas AB Class B	17,520	$	270,423
Securitas Direct AB Class B^a	51,952		141,101
Securitas Systems AB Class B	46,864		165,536
Swedish Match AB	30,634		602,414
Tele2 AB Class B	27,328		481,634
Telefonaktiebolaget LM Ericsson AB Class B	744,506		2,828,679
TeliaSonera AB	63,918		490,918
Volvo AB Class A	30,864		580,598

			13,217,690

SWITZERLAND – 6.69%
ABB Ltd. Registered	152,528		3,745,390
Adecco SA Registered	9,947		697,216
Clariant AG Registered^a	13,634		213,562
Compagnie Financiere Richemont AG Class A	11,840		750,700
Geberit AG Registered	3,251		533,819
Holcim Ltd. Registered	14,208		1,521,864
Kuehne & Nagel International AG Registered	5,100		501,354
Logitech International SA Registered^a	14,084		383,875
Lonza Group AG Registered	3,168		300,636
Nobel Biocare Holding AG	1,904		577,497
Novartis AG Registered	168,810		9,160,124
OC Oerlikon Corp. AG Registered^a	533		238,729
Phonak Holding AG Registered	3,808		368,965
Roche Holding AG	51,085		9,109,889
Schindler Holding AG Participation Certificates	4,828		309,523
SGS SA Registered	373		452,534
Straumann Holding AG Registered	656		183,161
Sulzer AG Registered	289		384,725
Syngenta AG Registered	8,177		1,549,240
Synthes Inc.	4,640		544,431
UBS AG Registered	48,992		2,750,050

			34,277,284

UNITED KINGDOM – 22.38%
Acergy SA	14,790		399,431
Aegis Group PLC	74,496		193,766
Aggreko PLC	19,618		219,854


Security	Shares	Value
Anglo American PLC	97,508	$	5,754,018
ARM Holdings PLC	112,129		337,790
AstraZeneca PLC	112,523		5,851,214
BAE Systems PLC	236,538		2,030,776
Balfour Beatty PLC	31,288		277,045
BG Group PLC	251,600		4,131,011
BHP Billiton PLC	175,610		5,256,375
British Airways PLC^a	46,138		372,909
British American Tobacco PLC	109,242		3,551,763
British Land Co. PLC	38,239		965,855
British Sky Broadcasting Group PLC	87,601		1,183,764
BT Group PLC	580,754		3,717,382
Bunzl PLC	25,218		337,699
Burberry Group PLC	36,856		479,317
Cable & Wireless PLC	179,945		620,886
Cadbury Schweppes PLC	148,500		1,870,908
Capita Group PLC	50,919		745,501
Carnival PLC	12,971		573,017
Carphone Warehouse Group PLC (The)	32,149		234,039
Centrica PLC	260,967		1,910,399
Charter PLC^a	12,730		299,293
Close Brothers Group PLC	12,257		202,866
Cobham PLC	98,158		383,466
Compass Group PLC	161,092		1,098,249
CSR PLC^a	12,220		181,023
Daily Mail & General Trust PLC Class A	26,588		389,273
Diageo PLC	192,015		3,948,663
EMI Group PLC^b	55,280		285,323
Enterprise Inns PLC	53,214		733,686
Experian Group Ltd.	76,359		884,442
First Choice Holidays PLC	43,282		272,649
FirstGroup PLC	22,933		298,712
G4S PLC	89,182		395,518
GlaxoSmithKline PLC	414,936		10,581,792
Hammerson PLC	21,284		519,002
Hays PLC	115,878		381,461
ICAP PLC	39,055		380,738
Imperial Chemical Industries PLC	51,232		649,621
Imperial Tobacco Group PLC	50,184		2,211,868


Security	Shares	Value
Inchcape PLC	36,388	$	344,386
InterContinental Hotels Group PLC	24,184		557,283
International Power PLC	109,752		922,752
Intertek Group PLC	14,348		288,789
Invensys PLC^a	60,408		468,299
INVESCO PLC	57,069		722,475
Investec PLC	27,115		341,339
J Sainsbury PLC	109,480		1,275,859
Johnson Matthey PLC	14,127		490,312
Kesa Electricals PLC	44,489		292,909
Ladbrokes PLC	37,387		311,676
Land Securities Group PLC	17,599		605,094
Liberty International PLC	21,762		459,019
LogicaCMG PLC	114,478		359,987
London Stock Exchange Group PLC	13,725		377,350
Man Group PLC	131,928		1,522,719
Marks & Spencer Group PLC	125,823		1,615,889
Michael Page International PLC	26,928		299,313
Misys PLC	42,041		205,031
Mondi PLC^a	26,788		235,021
National Grid PLC	174,806		2,495,382
Next PLC	18,615		718,327
Prudential PLC	175,746		2,440,947
Punch Taverns PLC	20,281		478,471
Reckitt Benckiser PLC	45,271		2,439,653
Reed Elsevier PLC	93,557		1,164,439
Reuters Group PLC	96,626		1,219,326
Rio Tinto PLC	72,026		5,277,756
Rolls-Royce Group PLC^a	132,228		1,370,339
SABMiller PLC	65,229		1,687,344
Sage Group PLC	95,463		448,592
Schroders PLC	10,525		265,203
Scottish & Southern Energy PLC	60,775		1,789,484
Serco Group PLC	36,315		324,693
Smith & Nephew PLC	72,862		872,809
Smiths Group PLC	13,879		295,284
Smiths Group PLC Deferred^c	20,819		4
Stagecoach Group PLC	30,730		133,008
Stagecoach Group PLC Class C Deferred^c	44,992		9
Standard Life PLC	145,554		912,460


Security	Shares	Value
Tesco PLC	566,406	$	4,693,061
Travis Perkins PLC	10,472		403,462
Tullett Prebon PLC	13,095		109,100
Unilever PLC	78,793		2,481,725
United Business Media PLC	19,570		307,202
Whitbread PLC	10,048		342,002
William Hill PLC	33,201		410,194
WPP Group PLC	88,826		1,286,054
Xstrata PLC	44,957		2,921,529
Yell Group PLC	56,780		536,516

			114,632,241


TOTAL COMMON STOCKS (Cost: $426,138,627)			508,778,770

PREFERRED STOCKS – 0.42%

GERMANY – 0.42%
Henkel KGaA	14,541		792,993
Porsche AG	602		1,102,856
ProSiebenSat.1 Media AG	6,936		252,645

			2,148,494


TOTAL PREFERRED STOCKS (Cost: $1,384,461)			2,148,494

SHORT-TERM INVESTMENTS – 0.98%

MONEY MARKET FUNDS – 0.98%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares 5.31%^d,e	62,243		62,243
BGI Cash Premier Fund LLC
5.34%^d,e,f	4,977,430		4,977,430

			5,039,673


TOTAL SHORT-TERM INVESTMENTS (Cost: $5,039,673)			5,039,673


TOTAL INVESTMENTS IN SECURITIES – 100.74% (Cost: $432,562,761)			515,966,937

Other Assets, Less Liabilities – (0.74)%			(3,812,693	)


NET ASSETS – 100.00%		$	512,154,244

ADR – American Depositary Receipts

SP ADR – Sponsored American Depositary Receipts

^a	Non-income earning security.

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

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

^d	Affiliated issuer. See Note 2.

^e	The rate quoted is the annualized seven-day yield of the fund at period end.

^f	This security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.


Security	Shares	Value
COMMON STOCKS – 99.16%

AUSTRALIA – 6.09%
AGL Energy Ltd.	75,426	$	999,749
Alinta Ltd.	9,087		115,151
Amcor Ltd.	169,143		992,714
AMP Ltd.	217,893		1,878,109
Ansell Ltd.	31,473		319,818
APN News & Media Ltd.	19,851		97,628
Australia & New Zealand Banking Group Ltd.	325,416		7,890,505
AXA Asia Pacific Holdings Ltd.	56,277		354,403
BlueScope Steel Ltd.	126,282		1,184,773
Boral Ltd.	111,930		743,237
Caltex Australia Ltd.	23,127		494,984
Centro Properties Group	155,922		1,063,408
CFS Retail Property Trust	233,493		430,122
Coca-Cola Amatil Ltd.	77,454		607,881
Commonwealth Bank of Australia	227,136		10,559,545
Commonwealth Property Office Fund	318,942		437,231
CSR Ltd.	116,454		334,256
DB RREEF Trust	445,926		693,456
Downer EDI Ltd.	21,918		131,643
Futuris Corp. Ltd.	102,453		211,554
Goodman Fielder Ltd.	180,648		394,687
Goodman Group	188,760		983,316
GPT Group	347,373		1,342,308
Iluka Resources Ltd.	51,441		262,685
Insurance Australia Group Ltd.	277,875		1,357,075
Investa Property Group	314,340		789,127
James Hardie Industries NV	40,560		262,029
John Fairfax Holdings Ltd.	156,351		648,374
Lion Nathan Ltd.	66,807		486,542
Macquarie Airports	122,928		460,269
Macquarie Infrastructure Group	512,655		1,436,324
Mirvac Group	180,258		793,848
Multiplex Group	106,080		450,811
National Australia Bank Ltd.	143,598		4,719,614
OneSteel Ltd.	95,472		548,881
Pacific Brands Ltd.	94,224		290,632
PaperlinX Ltd.	22,620		62,019


Security	Shares	Value
Qantas Airways Ltd.	137,475	$	676,106
Santos Ltd.	123,084		1,402,596
Stockland	246,870		1,635,036
Suncorp-Metway Ltd.	149,307		2,481,769
Symbion Health Ltd.	42,120		149,767
Tabcorp Holdings Ltd.	106,392		1,481,296
Tattersall’s Ltd.	195,507		822,476
Telstra Corp. Ltd.	479,544		1,890,017
Telstra Corp. Ltd. Installment Receipt	254,007		679,016
Transurban Group	174,759		1,075,087
Wesfarmers Ltd.	66,027		2,205,740
Westfield Group	271,245		4,427,272
Westfield Group New	22,376		355,061
Westpac Banking Corp.	325,806		7,313,745
Zinifex Ltd.	87,126		1,486,273

			72,909,965

AUSTRIA – 0.74%
Erste Bank der Oesterreichischen Sparkassen AG	22,652		1,719,969
Flughafen Wien AG	451		47,604
IMMOFINANZ AG^a	112,203		1,428,378
Mayr-Melnhof Karton AG	4,312		483,708
Meinl European Land Ltd.^a	58,566		1,366,866
Oesterreichische Elektrizitaetswirtschafts AG Class A	9,516		468,935
OMV AG	34,610		2,189,714
Wienerberger AG	16,029		1,126,685

			8,831,859

BELGIUM – 1.21%
AGFA-Gevaert NV	16,614		352,502
Barco NV	4,680		470,216
Belgacom SA	28,314		1,156,527
Cofinimmo	4,359		783,145
Compagnie Maritime Belge SA	5,187		364,526
Dexia SA	98,124		2,840,805
Euronav SA	2,460		88,629
Fortis	195,619		7,824,329
UCB SA	11,037		624,413

			14,505,092


Security	Shares	Value
DENMARK – 0.85%
A.P. Moller-Maersk A/S	195	$	2,600,837
A/S Dampskibsselskabet TORM	3,900		157,126
Bang & Olufsen A/S Class B	2,574		300,693
Carlsberg A/S Class B	5,733		742,498
Danisco A/S	8,853		663,680
Danske Bank A/S	83,421		3,548,932
East Asiatic Co. Ltd. A/S	3,705		216,067
Jyske Bank A/S^a	12,714		1,012,770
Lundbeck (H.) A/S	6,006		156,068
Sydbank A/S	8,385		429,604
Trygvesta A/S	3,900		314,253

			10,142,528

FINLAND – 1.32%
Amer Group OYJ^b	10,413		256,569
Fortum OYJ	76,089		2,477,834
Kesko OYJ Class B	11,466		614,311
Metso OYJ	21,801		1,402,588
Neste Oil OYJ	26,481		956,961
OKO Bank PLC Class A	14,703		258,219
Orion OYJ	14,586		385,544
Outokumpu OYJ	19,617		617,613
Rautaruukki OYJ	15,210		1,018,733
Sampo OYJ	69,537		2,103,604
SanomaWSOY OYJ Class B	10,803		348,546
Stora Enso OYJ Class R	108,849		1,884,824
TietoEnator OYJ	7,722		191,322
UPM-Kymmene OYJ	97,227		2,180,001
Uponor OYJ	8,112		298,923
Wartsila OYJ Class B	11,154		787,837

			15,783,429

FRANCE – 10.47%
Air France-KLM	17,316		789,073
Alcatel-Lucent	404,040		4,811,710
Arcelor Mittal	135,954		8,510,382
Atos Origin SA^a	1,989		118,108
AXA	274,599		10,911,937
BNP Paribas	147,732		16,527,682
Casino Guichard-Perrachon SA	8,619		846,515
CNP Assurances SA	7,917		1,049,690


Security	Shares	Value
Compagnie Generale des Etablissements Michelin Class B	5,460	$	731,174
Credit Agricole SA	116,883		4,535,867
European Aeronautic Defence and Space Co.	37,752		1,150,843
France Telecom SA	296,751		8,067,283
Gecina SA	2,496		409,998
Imerys SA	4,797		473,698
Lafarge SA	19,500		3,345,113
M6-Metropole Television	4,446		136,203
PagesJaunes SA	10,336		208,548
PSA Peugeot Citroen SA	28,509		2,432,790
Renault SA	32,643		4,783,802
Sanofi-Aventis	68,640		5,778,409
SCOR SE^b	26,013		671,209
Societe BIC	3,666		266,617
Societe Generale Class A	65,403		11,409,308
Total SA	348,855		27,830,458
Valeo SA	16,185		841,441
Vivendi	201,942		8,657,734

			125,295,592

GERMANY – 7.83%
Allianz SE	79,755		17,073,508
ALTANA AG	8,385		198,107
Commerzbank AG	73,554		3,189,682
DaimlerChrysler AG Registered	163,020		14,926,499
Deutsche Bank AG	91,143		12,588,395
Deutsche Post AG	136,344		4,005,176
Deutsche Telekom AG	494,637		8,558,340
E.ON AG	110,409		17,501,243
Heidelberger Druckmaschinen AG	8,385		412,627
Hypo Real Estate Holding AG	27,729		1,709,956
Muenchener Rueckversicherungs- Gesellschaft AG	36,933		6,412,490
Salzgitter AG	2,691		556,809
Suedzucker AG	30,069		577,474
ThyssenKrupp AG	64,935		3,645,226
TUI AG^a	45,084		1,280,550
Volkswagen AG	5,850		1,061,350

			93,697,432


Security	Shares	Value
HONG KONG – 1.80%
BOC Hong Kong Holdings Ltd.	604,500	$	1,567,973
Cathay Pacific Airways Ltd.	156,000		410,618
Cheung Kong (Holdings) Ltd.	273,000		3,871,969
Cheung Kong Infrastructure Holdings Ltd.^b	78,000		280,057
CLP Holdings Ltd.	273,000		1,847,034
Giordano International Ltd.	546,000		241,388
Hang Lung Properties Ltd.	234,000		873,062
Hang Seng Bank Ltd.	140,400		2,224,514
Henderson Land Development Co. Ltd.	145,000		1,056,061
Hongkong Electric Holdings Ltd.	234,000		1,166,076
Hopewell Holdings Ltd.	117,000		509,037
Hutchison Whampoa Ltd.	195,000		2,095,448
Hysan Development Co. Ltd.	195,000		507,044
Johnson Electric Holdings Ltd.^b	682,500		362,779
Kingboard Chemical Holdings Co. Ltd.	19,500		108,510
MTR Corp. Ltd.	234,000		589,616
Noble Group Ltd.	195,000		218,459
Orient Overseas International Ltd.^b	39,000		468,174
Swire Pacific Ltd. Class A^b	156,000		1,780,010
Techtronic Industries Co. Ltd.	253,500		301,236
Wharf Holdings Ltd. (The)	234,000		979,205
Yue Yuen Industrial Holdings Ltd.^b	39,000		122,587

			21,580,857

IRELAND – 0.98%
Allied Irish Banks PLC	166,257		4,380,932
Bank of Ireland	186,849		3,567,967
DEPFA Bank PLC	67,509		1,383,373
Elan Corp. PLC^a	40,911		740,333
Greencore Group PLC	59,748		411,384
Irish Life & Permanent PLC	51,090		1,241,338

			11,725,327

ITALY – 3.74%
Banco Popolare SpA^a	131,118		3,239,630
Enel SpA	746,724		7,753,032
Eni SpA	459,966		16,231,718
Intesa Sanpaolo SpA	615,849		4,708,182
Pirelli & C. SpA^a	663,446		755,587
Snam Rete Gas SpA	172,757		960,102
UniCredito Italiano SpA German	1,295,344		11,126,401

			44,774,652


Security	Shares	Value
JAPAN – 21.10%
Acom Co. Ltd.^b	15,210	$	542,918
Aderans Co. Ltd.	7,800		145,761
Aeon Credit Service Co. Ltd.	15,600		221,556
AIFUL Corp.	19,500		489,691
Ajinomoto Co. Inc.	117,000		1,418,956
Alps Electric Co. Ltd.	35,100		349,040
Amada Co. Ltd.	78,000		914,526
Aoyama Trading Co. Ltd.	11,700		336,068
Asahi Breweries Ltd.	66,300		942,728
Asahi Kasei Corp.	78,000		558,804
Astellas Pharma Inc.	93,600		3,852,014
Bank of Kyoto Ltd. (The)	78,000		1,056,028
Bank of Yokohama Ltd. (The)	156,000		1,090,094
Benesse Corp.	11,700		361,618
Bridgestone Corp.	113,100		2,393,751
Canon Marketing Japan Inc.	15,600		282,350
Central Glass Co. Ltd.	39,000		217,495
Chubu Electric Power Co. Inc.	113,100		2,840,205
Circle K Sunkus Co. Ltd.	15,600		265,317
Citizen Watch Co. Ltd.	62,400		576,492
Coca-Cola West Japan Co. Ltd.	7,800		162,466
COMSYS Holdings Corp.	39,000		433,024
CSK Corp.	3,900		126,108
Dai Nippon Printing Co. Ltd.	117,000		1,718,666
Daicel Chemical Industries Ltd.	39,000		261,387
Daiichi Sankyo Co. Ltd.	124,818		3,448,967
Daito Trust Construction Co. Ltd.	7,800		389,132
Daiwa House Industry Co. Ltd.	78,000		1,026,549
Daiwa Securities Group Inc.	195,000		2,086,507
Denki Kagaku Kogyo Kabushiki Kaisha	78,000		390,442
Dentsu Inc.	273		697,031
East Japan Railway Co.	273		2,026,893
Edion Corp.	19,500		212,254
Eisai Co. Ltd.	27,300		1,153,311
Electric Power Development Co. Ltd.	27,320		938,469
FamilyMart Co. Ltd.	11,700		303,641
Fuji Electric Holdings Co. Ltd.	78,000		325,587
Fuji Television Network Inc.	117		236,820


Security	Shares	Value
Fujikura Ltd.	78,000	$	485,432
Fukuoka Financial Group Inc.^a	39,000		249,267
Glory Ltd.	11,700		313,467
Gunma Bank Ltd.	39,000		259,749
Hakuhodo DY Holdings Inc.	780		50,377
Hankyu Department Stores Inc.	39,000		377,340
Hino Motors Ltd.	39,000		274,489
Hiroshima Bank Ltd. (The)	78,000		442,195
Hitachi Cable Ltd.	39,000		240,751
Hitachi Credit Corp.	11,700		164,202
Hitachi Ltd.	390,000		2,794,020
Hokkaido Electric Power Co. Inc.	31,200		644,623
Honda Motor Co. Ltd.	273,000		9,859,321
Idemitsu Kosan Co. Ltd.	3,900		463,814
ITOCHU Corp.	273,000		3,446,176
Itochu Techno-Science Corp.	3,900		142,158
JAFCO Co. Ltd.	3,900		179,499
Japan Prime Realty Investment Corp.	78		300,038
Japan Real Estate Investment Corp.	78		890,942
Japan Retail Fund Investment Corp.	39		317,070
JFE Holdings Inc.	42,900		2,958,124
Joyo Bank Ltd. (The)	117,000		682,946
JS Group Corp.	46,800		884,391
Kamigumi Co. Ltd.	39,000		338,034
Kaneka Corp.	78,000		638,072
Kansai Electric Power Co. Inc. (The)	128,700		2,859,039
Kansai Paint Co. Ltd.	39,000		338,689
Kao Corp.	78,000		2,148,742
Kawasaki Kisen Kaisha Ltd.	117,000		1,618,435
Keio Corp.	117,000		736,010
Keisei Electric Railway Co. Ltd.	39,000		200,134
Kinden Corp.	39,000		345,895
Kirin Holdings Co. Ltd.	156,000		2,212,943
Kobe Steel Ltd.	195,000		761,559
Kokuyo Co. Ltd.	11,700		129,514
Komori Corp.	9,000		207,492
Kuraray Co. Ltd.	39,000		449,729
Kyocera Corp.	27,300		2,636,795
Kyowa Hakko Kogyo Co. Ltd.	39,000		393,063


Security	Shares	Value
Kyushu Electric Power Co. Inc.	58,500	$	1,388,002
Lawson Inc.	11,700		400,924
Leopalace21 Corp.	11,700		370,461
Mabuchi Motor Co. Ltd.	3,900		237,148
Makita Corp.	11,700		540,461
Marubeni Corp.	273,000		2,643,674
Marui Co. Ltd.	46,800		529,062
Matsumotokiyoshi Co. Ltd.	3,900		86,965
Matsushita Electric Works Ltd.	39,000		490,673
Mediceo Paltac Holdings Co. Ltd.	15,600		230,073
Meiji Seika Kaisha Ltd.	39,000		171,965
Mitsubishi Chemical Holdings Corp.	195,000		1,778,608
Mitsubishi Corp.	230,100		6,841,255
Mitsubishi Gas Chemical Co. Inc.	39,000		341,964
Mitsubishi Heavy Industries Ltd.	351,000		2,485,138
Mitsubishi Materials Corp.	195,000		1,257,800
Mitsubishi Rayon Co. Ltd.	39,000		293,487
Mitsubishi UFJ Financial Group Inc.	1,404		14,975,686
Mitsubishi UFJ Securities Co. Ltd.	39,000		422,870
Mitsui & Co. Ltd.	273,000		6,442,951
Mitsui Mining & Smelting Co. Ltd.	39,000		188,670
Mitsui O.S.K. Lines Ltd.	195,000		3,069,164
Mitsui Sumitomo Insurance Co. Ltd.	234,000		2,712,132
Mitsui Trust Holdings Inc.	117,000		1,040,633
Mitsumi Electric Co. Ltd.	11,700		458,900
Namco Bandai Holdings Inc.	39,000		611,540
NEC Corp.	273,000		1,345,912
Nichirei Corp.	39,000		187,360
Nikko Cordial Corp.	78,000		1,048,822
Nippon Building Fund Inc.	78		1,035,065
Nippon Express Co. Ltd.	156,000		847,705
Nippon Kayaku Co. Ltd.	39,000		339,672
Nippon Light Metal Co. Ltd.	117,000		303,641
Nippon Meat Packers Inc.	39,000		422,870
Nippon Mining Holdings Inc.	156,000		1,581,422
Nippon Oil Corp.	234,000		2,096,989
Nippon Paper Group Inc.	195		632,176
Nippon Sheet Glass Co. Ltd.	78,000		411,406
Nippon Shokubai Co. Ltd.	39,000		344,585


Security	Shares	Value
Nippon Steel Corp.	936,000	$	7,075,127
Nippon Telegraph and Telephone Corp.	897		3,879,856
Nippon Yusen Kabushiki Kaisha	195,000		1,973,502
Nissan Motor Co. Ltd.	397,800		4,249,793
Nisshin Seifun Group Inc.	19,700		183,821
Nisshin Steel Co. Ltd.	117,000		514,912
Nissin Food Products Co. Ltd.	15,600		476,916
Nomura Real Estate Office Fund Inc.	39		360,307
NSK Ltd.	78,000		751,405
NTN Corp.	78,000		643,312
NTT DoCoMo Inc.	2,886		3,999,412
Obayashi Corp.	117,000		622,022
Oji Paper Co. Ltd.	156,000		750,750
Okumura Corp.^b	39,000		207,996
Oracle Corp. Japan	3,900		173,275
Oriental Land Co. Ltd.	3,900		202,427
Osaka Gas Co. Ltd.	351,000		1,208,668
Pioneer Corp.	23,400		315,826
Promise Co. Ltd.^b	17,550		474,623
Resona Holdings Inc.^b	468		1,014,102
Ricoh Co. Ltd.	117,000		2,540,167
Rinnai Corp.	7,800		233,217
Rohm Co. Ltd.	19,500		1,657,414
Sankyo Co. Ltd.	3,900		155,915
Santen Pharmaceutical Co. Ltd.	11,700		275,635
Sanwa Shutter Corp.	39,000		231,579
Sapporo Hokuyo Holdings Inc.	78		831,983
Sapporo Holdings Ltd.^b	39,000		234,527
SBI Holdings Inc.	1,677		518,319
Sega Sammy Holdings Inc.	35,100		505,872
Seiko Epson Corp.	11,700		342,947
Seino Holdings Co. Ltd.	39,000		378,978
Sekisui Chemical Co. Ltd.	78,000		611,212
77 Bank Ltd. (The)	78,000		515,567
Sharp Corp.	172,000		2,983,076
Shimachu Co. Ltd.	7,800		222,736
Shinko Securities Co. Ltd.	78,000		381,926
Shinsei Bank Ltd.	273,000		1,027,204
Shizuoka Bank Ltd. (The)	117,000		1,178,205


Security	Shares	Value
Showa Shell Sekiyu K.K.	42,900	$	532,534
Sojitz Corp.	120,900		611,278
Sompo Japan Insurance Inc.	156,000		1,819,880
Sumitomo Bakelite Co. Ltd.	39,000		279,075
Sumitomo Corp.	187,200		3,663,344
Sumitomo Osaka Cement Co. Ltd.	78,000		199,152
Sumitomo Rubber Industries Inc.	35,100		420,675
Sumitomo Trust and Banking Co. Ltd. (The)	234,000		1,983,001
Suzuken Co. Ltd.	11,700		363,583
T&D Holdings Inc.	13,650		896,510
Taiheiyo Cement Corp.	78,000		333,448
Taisei Corp.	117,000		414,681
Taisho Pharmaceutical Co. Ltd.	39,000		756,646
Takara Holdings Inc.	39,000		241,734
Takeda Pharmaceutical Co. Ltd.	148,200		9,658,859
Takefuji Corp.	21,060		654,449
Tanabe Seiyaku Co. Ltd.	39,000		458,573
Teijin Ltd.	78,000		424,508
THK Co. Ltd.	3,900		92,533
Toda Corp.	39,000		213,236
Toho Co. Ltd.	3,900		71,734
Tohoku Electric Power Co. Inc.	70,200		1,556,528
Tokai Rika Co. Ltd.	15,600		415,336
Tokyo Electric Power Co. Inc. (The)	210,600		5,607,038
Tokyo Gas Co. Ltd.	390,000		1,699,996
Tokyo Steel Manufacturing Co. Ltd.	11,700		192,208
TonenGeneral Sekiyu K.K.	39,000		380,943
Toppan Printing Co. Ltd.	78,000		847,050
Tosoh Corp.	39,000		233,217
TOTO Ltd.	39,000		331,483
Toyo Seikan Kaisha Ltd.	27,300		479,209
Toyota Industries Corp.	39,000		1,772,057
Toyota Motor Corp.	475,800		28,772,183
UNY Co. Ltd.	39,000		413,698
West Japan Railway Co.	312		1,412,405
Yamaha Corp.	27,300		596,145
Yamaha Motor Co. Ltd.	27,300		772,696
Yamato Holdings Co. Ltd.	78,000		1,162,810

			252,473,999


Security	Shares	Value
NETHERLANDS – 3.58%
ABN AMRO Holding NV	315,783	$	15,297,666
Aegon NV	260,598		4,794,311
Corio NV	6,962		503,180
Corporate Express NV	32,740		449,954
Hagemeyer NV	45,864		244,218
ING Groep NV	329,121		14,110,201
Koninklijke DSM NV	22,581		1,176,126
Koninklijke KPN NV	214,422		3,354,837
Oce NV	12,324		288,809
Unilever NV	73,398		2,246,528
Wereldhave NV	3,471		445,575

			42,911,405

NEW ZEALAND – 0.14%
Fisher & Paykel Appliances Holdings Ltd.	98,319		269,883
Sky City Entertainment Group Ltd.	73,905		276,740
Telecom Corp. of New Zealand Ltd.	319,488		1,115,271

			1,661,894

NORWAY – 1.11%
DnB NOR ASA	142,857		1,906,363
Frontline Ltd.	10,335		488,120
Marine Harvest ASA^a	495,105		626,683
Norsk Hydro ASA	127,257		4,939,388
Norske Skogindustrier ASA	43,368		610,754
Orkla ASA	101,010		1,934,293
ProSafe SE	23,556		368,151
Statoil ASA	44,343		1,325,126
Yara International ASA	39,078		1,058,729

			13,257,607

PORTUGAL – 0.48%
Banco Comercial Portugues SA Class R^b	464,856		2,392,556
Banco Espirito Santo SA	49,379		1,163,266
Brisa-Auto Estradas de Portugal SA	60,762		832,572
Portugal Telecom SGPS SA	99,996		1,407,121

			5,795,515


Security	Shares	Value
SINGAPORE – 1.16%
Ascendas Real Estate Investment Trust^b	234,000	$	417,898
CapitaCommercial Trust	195,000		341,823
CapitaLand Ltd.	39,000		192,758
CapitaMall Trust Management Ltd.^b	195,000		483,179
ComfortDelGro Corp. Ltd.	390,000		532,011
DBS Group Holdings Ltd.	195,000		2,968,467
Fraser and Neave Ltd.	117,000		404,791
Haw Par Corp. Ltd.	39,000		206,893
Jardine Cycle & Carriage Ltd.	39,000		413,786
Neptune Orient Lines Ltd.	117,000		435,632
Oversea-Chinese Banking Corp.^b	429,000		2,572,671
Singapore Airlines Ltd.	78,000		997,199
Singapore Land Ltd.	39,000		269,861
Singapore Petroleum Co. Ltd.	117,000		501,170
Suntec REIT	195,000		244,160
United Overseas Bank Ltd.	195,000		2,891,364

			13,873,663

SPAIN – 4.52%
Banco Bilbao Vizcaya Argentaria SA	254,748		6,322,145
Banco Popular Espanol SA	92,547		1,676,016
Banco Santander Central Hispano SA	1,109,160		21,134,369
Ebro Puleva SA	29,133		652,017
Endesa SA	132,756		7,179,878
Gas Natural SDG SA	39,000		2,265,132
Gestevision Telecinco SA	8,697		239,526
Iberdrola SA	142,467		8,040,508
Iberia Lineas Aereas de Espana SA	24,258		114,891
Repsol YPF SA	158,808		6,073,718
Zeltia SA^b	31,239		354,065

			54,052,265

SWEDEN – 2.54%
Axfood AB	5,460		190,835
Billerud AB	14,469		220,109
Castellum AB	26,793		327,064
D. Carnegie & Co. AB^b	15,600		308,509


Security	Shares	Value
Electrolux AB Series B	44,382	$	1,126,363
Eniro AB	9,867		123,010
Fabege AB	21,528		231,642
Hoganas AB Class B	4,407		127,215
Holmen AB Class B	9,750		413,129
Nordea Bank AB	364,886		5,946,138
Scania AB Class B	35,880		867,991
Securitas AB Class B	23,712		365,997
Skandinaviska Enskilda Banken AB Class A	78,819		2,737,299
Skanska AB Class B	62,361		1,358,209
SKF AB	65,481		1,389,718
SSAB Svenskt Stal AB Class A	27,729		1,018,556
SSAB Svenskt Stal AB Class B	6,903		240,246
Svenska Cellulosa AB Class B	104,559		1,866,044
Svenska Handelsbanken AB Class A	90,675		2,630,933
Telefonaktiebolaget LM Ericsson AB Class B	830,934		3,157,053
TeliaSonera AB	230,256		1,768,466
Trelleborg AB Class B	13,104		336,454
Volvo AB Class B	191,190		3,561,101
Wihlborgs Fastigheter AB	3,822		64,807

			30,376,888

SWITZERLAND – 6.53%
Ciba Specialty Chemicals AG Registered	13,962		854,497
Clariant AG Registered^a	20,287		317,775
Compagnie Financiere Richemont AG Class A	81,705		5,180,398
Credit Suisse Group Registered	196,020		13,031,079
Givaudan SA Registered	1,209		1,139,277
Nestle SA Registered	70,356		27,185,923
PSP Swiss Property AG^a	12,129		643,037
Rieter Holding AG	1,287		680,183
Swatch Group AG (The) Class B	3,354		1,021,473
Swiss Life Holding	5,850		1,455,937
Swiss Reinsurance Co. Registered	59,436		5,136,566
Swisscom AG Registered	3,471		1,186,901
UBS AG Registered	229,125		12,861,387
Zurich Financial Services AG Registered	25,428		7,480,066

			78,174,499


Security	Shares	Value
UNITED KINGDOM – 22.97%
Arriva PLC	30,732	$	496,781
Aviva PLC	445,263		6,252,145
Barclays PLC^c	1,121,835		15,934,577
Barratt Developments PLC	47,034		893,630
BBA Aviation PLC	63,375		317,446
Bellway PLC	16,146		409,134
Berkeley Group Holdings PLC (The)^a	10,179		340,876
Bovis Homes Group PLC	16,068		253,045
BP PLC	3,423,381		40,173,680
British Energy Group PLC	198,315		2,016,945
Brixton PLC	76,479		588,612
Cattles PLC	61,971		467,193
Compass Group PLC	81,120		553,038
Cookson Group PLC	21,177		298,432
Davis Service Group PLC (The)	17,160		205,733
De La Rue PLC	10,556		160,234
Diageo PLC	124,917		2,568,836
DSG International PLC	375,999		1,195,736
Electrocomponents PLC	68,562		353,876
Emap PLC	39,390		675,558
FKI PLC	108,654		246,181
Friends Provident PLC	307,554		1,168,685
GKN PLC	145,782		1,146,434
Hanson PLC	123,708		2,732,510
HBOS PLC	657,969		12,962,466
Home Retail Group PLC	149,370		1,250,532
HSBC Holdings PLC	2,038,530		37,861,489
IMI PLC	30,108		360,968
Imperial Chemical Industries PLC	105,066		1,332,236
International Personal Finance PLC^a	45,917		205,272
ITV PLC	723,021		1,503,007
Kelda Group PLC	33,449		571,628
Kelda Group PLC Deferred^d	41,255		8
Kesa Electricals PLC	6,162		40,570
Kingfisher PLC	406,185		1,760,140
Land Securities Group PLC	49,959		1,717,705
Legal & General Group PLC	1,100,619		3,137,828
Lloyds TSB Group PLC	983,190		11,148,233


Security	Shares	Value
Meggitt PLC	96,878	$	608,300
National Express Group PLC	21,606		508,853
National Grid PLC	86,658		1,237,056
Old Mutual PLC	917,202		3,049,177
Pearson PLC	112,164		1,816,545
Persimmon PLC	49,101		1,158,396
Premier Farnell PLC	38,142		147,068
Provident Financial PLC	22,959		424,550
Rank Group PLC	169,494		582,931
Rentokil Initial PLC	291,798		929,446
Resolution PLC	121,485		1,629,300
Rexam PLC	80,964		827,550
Royal Bank of Scotland Group PLC	1,662,258		20,013,414
Royal Dutch Shell PLC Class A	649,974		25,504,254
Royal Dutch Shell PLC Class B	483,561		19,259,354
Scottish & Newcastle PLC	141,648		1,706,866
Sergo PLC	71,097		781,597
Severn Trent PLC	38,454		1,008,012
Signet Group PLC	247,845		494,820
Stagecoach Group PLC	43,395		187,825
Stagecoach Group PLC Class C Deferred^d	58,854		12
Standard Life PLC	83,655		524,423
Stolt-Nielsen SA	7,488		259,134
Tate & Lyle PLC	80,964		935,313
TaylorWimpey PLC	187,980		1,261,505
Thomas Cook Group PLC^a	42,794		268,705
3i Group PLC	63,514		1,391,306
Tomkins PLC	175,344		845,340
Trinity Mirror PLC	59,748		621,624
Tullett Prebon PLC	41,457		345,395
Unilever PLC	50,622		1,594,430
United Utilities PLC	140,478		1,919,707
Vodafone Group PLC	9,208,290		28,067,559
Wolseley PLC	73,632		1,620,427

			274,831,593


TOTAL COMMON STOCKS (Cost: $1,086,563,645)			1,186,656,061


Security	Shares	Value
PREFERRED STOCKS – 0.47%

GERMANY – 0.18%
Volkswagen AG	19,227	$	2,185,783

			2,185,783

ITALY – 0.29%
Intesa Sanpaolo SpA RNC	72,751		522,822
Telecom Italia SpA RNC	1,106,703		2,407,193
Unipol SpA	154,293		494,217

			3,424,232


TOTAL PREFERRED STOCKS (Cost: $4,984,672)			5,610,015

RIGHTS – 0.01%

SWEDEN – 0.01%
SSAB Svenskt Stal AB Class A^d	27,729		95,168
SSAB Svenskt Stal AB Class B^d	6,903		20,362

			115,530


TOTAL RIGHTS (Cost: $0)			115,530

SHORT-TERM INVESTMENTS – 0.58%

MONEY MARKET FUNDS – 0.58%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares 5.31%^c,e	493,118		493,118
BGI Cash Premier Fund LLC 5.34%^c,e,f	6,402,735		6,402,735

			6,895,853


TOTAL SHORT-TERM INVESTMENTS (Cost: $6,895,853)			6,895,853


TOTAL INVESTMENTS IN SECURITIES – 100.22% (Cost: $1,098,444,170)			1,199,277,459

Other Assets, Less Liabilities – (0.22)%			(2,619,722	)


NET ASSETS – 100.00%		$	1,196,657,737

^a	Non-income earning security.

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

^c	Affiliated issuer. See Note 2.

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

^e	The rate quoted is the annualized seven-day yield of the fund at period end.

^f	This security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

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 July 31, 2007, the Trust offered 111 investment portfolios or funds.

These financial statements relate only to the iShares FTSE/Xinhua China 25, iShares MSCI EAFE, iShares MSCI EAFE Growth and iShares MSCI EAFE Value Index Funds (each, a “Fund,” collectively, the “Funds”).

The investment objective of each Fund is to seek investment results that correspond generally to the price and yield performance, before fees and expenses, of its underlying index. 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. 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.

Each Fund invests in the securities of non-U.S. issuers that may trade in non-U.S. markets. This may involve certain considerations and risks not typically associated with securities of U.S. issuers. Such risks include, but are not limited to: generally less liquid and less efficient securities markets; generally greater price volatility; exchange rate fluctuations and exchange controls; imposition of restrictions on the expatriation of funds or other assets of the Fund; less publicly available information about issuers; the imposition of withholding or other taxes; higher transaction and custody costs; settlement delays and risk of loss attendant in settlement procedures; difficulties in enforcing contractual obligations; less regulation of securities markets; different accounting, disclosure and reporting requirements; more substantial governmental involvement in the economy; higher inflation rates; greater social, economic and political uncertainties; the risk of nationalization or expropriation of assets and the risk of war.

Pursuant to 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 the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

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 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”).

Investments that may be valued using fair value pricing include, but are not limited to: (i) an unlisted security related to corporate actions; (ii) a restricted security (i.e., one that may not be publicly sold without registration under the Securities Act of 1933, as amended); (iii) a security whose trading has been suspended or which has been de-listed from its primary trading exchange; (iv) a security that is thinly traded; (v) a security in default or bankruptcy proceedings for which there is no current market quotation; (vi) a security affected by currency controls or restrictions; and (vii) a security affected by a significant event (i.e., an event that occurs after the close of the markets on which the security is traded but before the time as of which the Fund’s NAV is computed and that may materially affect the value of the Fund’s investments). Examples of events that may be “significant events” are government actions, natural disasters, armed conflict, acts of terrorism, and significant market fluctuations.

Valuing a Fund’s investments using fair value pricing will result in using prices for those investments that may differ from current market valuations. Accordingly, fair value pricing could result in a difference between the prices used to calculate a Fund’s net asset value and the prices used by the Fund’s benchmark index, which, in turn, could result in a difference between the Fund’s performance and the performance of the Fund’s benchmark index.

The accounting records of the Funds are maintained in U.S. dollars. Foreign currencies, as well as investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates deemed appropriate by the investment adviser. Purchases and sales of securities, income receipts and expense payments are translated into U.S. dollars on the respective dates of such transactions.

Each Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of securities. Such fluctuations are reflected by the Funds as a component of realized and unrealized gains and losses from investments for financial reporting purposes.

Distributions to shareholders 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 are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Funds.

As of July 31, 2007, the tax year-end of the Funds, the components of net distributable earnings on a tax basis were as follows:

For the years ended July 31, 2007 and July 31, 2006, 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.

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 July 31, 2007.

Certain Funds had tax basis net capital loss carryforwards as of July 31, 2007, the tax year-end of the Funds, as follows:

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.

The Funds may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” The Funds may elect to mark-to-market annually the shares of each passive foreign investment company and would be required to distribute to shareholders any such mark-to-market gains.

For the year ended July 31, 2007, 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 July 31, 2007 are disclosed in the Funds’ Statements of Operations.

As of July 31, 2007, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:

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.

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.

For its investment advisory services to the iShares FTSE/Xinhua China 25, iShares MSCI EAFE Growth and iShares MSCI EAFE Value Index Funds, BGFA is entitled to an annual investment advisory fee based on the average daily net assets of each Fund as follows:

The Board approved a change to the investment advisory fee structure for the iShares FTSE/Xinhua China 25 Index Fund effective August 1, 2007. For its investment advisory services to the iShares FTSE/Xinhua China 25 Index Fund, BGFA will be entitled to an annual investment advisory fee based on the average daily net assets of the Fund as follows:

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

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

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

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 July 31, 2007, BGI earned securities lending agent fees as follows:

Portfolios”), respectively, which are also managed by BGFA. While the GMMF, IMMF, PMMF and TMMF do not directly charge an investment advisory fee, the Money Market Master Portfolios in which they invest do charge an investment advisory fee. Income distributions from the GMMF, IMMF, PMMF and TMMF are declared daily and paid monthly from net investment income. Income distributions earned by the Funds from temporary cash investments are recorded as interest from affiliated issuers in the accompanying Statements of Operations. Income distributions earned by the Funds from the investment of securities lending collateral, if any, are included in securities lending income in the accompanying Statements of Operations.

Each Fund may invest its securities lending cash collateral, if any, in the BGI Cash Premier Fund LLC (“Premier Fund”), an affiliated private money market fund managed by BGFA. Although the Premier Fund is not registered as an investment company under the 1940 Act, it intends to operate as a money market fund in compliance with Rule 2a-7 under the 1940 Act. See Note 5 for additional information regarding the Premier Fund.

For the year ended July 31, 2007, certain Funds had direct investments (exclusive of short-term investments) in issuers of which BGFA is an affiliate or issuers of which the Fund owns 5% or more of the outstanding voting securities as follows:

As of July 31, 2007, certain trustees and officers of the Trust are also officers of BGI and/or BGFA.

Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the year ended July 31, 2007 were as follows:

In-kind transactions (see Note 4) for the year ended July 31, 2007 were as follows:

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 deposit of a designated portfolio of equity securities, which constitutes a substantial replication, or a portfolio sampling representation, of the securities involved in the relevant Fund’s underlying index and an amount of cash. Investors purchasing and redeeming Creation Units pay a purchase transaction fee and a redemption transaction fee directly to State Street, the administrator, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units.

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 for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter, at a value equal to at least 100% of the current market value of the securities on loan. The risks to the Funds of securities lending are that the borrower may not provide additional collateral when required or may not return the securities when due.

During the year ended July 31, 2007, the Funds received cash as collateral for securities loaned. The cash collateral received was invested in a joint account and in the Premier Fund. Pursuant to an exemptive order issued by the SEC, a portion of 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 are fully collateralized by U.S. government securities or non-U.S. government debt securities. The Premier Fund seeks to achieve its investment objective by investing in a portfolio of high-quality, short-term fixed-income instruments, including money market funds (which may be managed by BGFA or its affiliate) and other instruments that, at the time of investment, have remaining maturities of 397 calendar days or less from the date of acquisition.

The market value of the securities on loan as of July 31, 2007 and the value of the related collateral are disclosed in the Statements of Assets and Liabilities. Securities lending income, as disclosed in the Funds’ Statements of Operations, represents the income earned from the investment of the cash collateral, net of rebates paid to, or fees paid by, borrowers and less the fees paid to BGI as securities lending agent.

In June 2006, the Financial Accounting Standards Board (“FASB”) issued FASB Interpretation No. 48 (“FIN 48”), “Accounting for Uncertainty in Income Taxes – an interpretation of FASB Statement No. 109.” FIN 48 clarifies the accounting for uncertainty in income taxes recognized in accordance with FASB Statement No. 109, “Accounting for Income Taxes.” This interpretation prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. It also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. FIN 48 is effective for fiscal years beginning after December 15, 2006. The SEC staff has stated that it would not object if a fund does not implement FIN 48 in its NAV calculation until the date of the fund’s last NAV calculation in the first required financial statement reporting period for its fiscal year beginning after December 15, 2006. The Trust is currently evaluating the impact of applying the various provisions of FIN 48.

In September 2006, FASB issued Statement of Financial Accounting Standards No. 157 (“FAS 157”), “Fair Value Measurements.” FAS 157 defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles and expands disclosure about fair value measurements. FAS 157 is effective for fiscal years beginning after November 15, 2007. The Trust is currently evaluating the impact the adoption of FAS 157 will have on the Funds’ financial statement disclosures.

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 iShares FTSE/Xinhua China 25 Index Fund, iShares MSCI EAFE Index Fund, iShares MSCI EAFE Growth Index Fund and iShares MSCI EAFE Value Index Fund, each a fund of iShares Trust (the “Funds”), at July 31, 2007, the results of each of their operations, the changes in each of their net assets and their financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). 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 July 31, 2007 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

For the fiscal year ended July 31, 2007, certain Funds earned foreign source income and paid foreign taxes which they intend to pass through to their shareholders pursuant to Section 853 of the Internal Revenue Code (the “Code”) as follows:

Under Section 854(b)(2) of the Code, the Funds hereby designate the following maximum amounts as qualified dividend income for purposes of the maximum rate under Section 1(h)(11) of the Code for the fiscal year ended July 31, 2007:

In January 2008, shareholders will receive Form 1099-DIV which will include their share of qualified dividend income distributed during the calendar year 2007. Shareholders are advised to check with their tax advisers for information on the treatment of these amounts on their income tax returns.

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Trustees who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Trustees”), is required annually to consider the Investment Advisory Contract between the Trust and BGFA (the “Advisory Contract”) on behalf of the Funds. As required by Section 15(c), the Board requested and BGFA provided such information as the Board deemed reasonably necessary to evaluate the terms of the Advisory Contract. At a meeting held on June 13, 2007, the Board approved the selection of BGFA and the continuance of the Advisory Contract, based on its review of qualitative and quantitative information provided by BGFA. In selecting BGFA and approving the Advisory Contract for the Funds, the Board, including the Independent Trustees, advised by their independent counsel, considered the following factors, none of which was controlling, and made the following conclusions:

The Board determined that there would be no diminution in the scope of services required of BGFA under the Advisory Contract for the coming year as compared to the scope of services provided by BGFA over the past year. In reviewing the scope of these services, the Board considered BGFA’s investment philosophy and experience, noting that BGFA and its affiliates have committed significant resources over time, including over the past year, including investment in technology and increasing the number of their employees supporting the Funds. The Board also considered BGFA’s compliance program and its compliance record with respect to the Funds. In that regard, the Board noted that BGFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and has made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Funds. In addition to the above considerations, the Board considered BGFA’s investment processes and strategies, and matters related to BGFA’s portfolio transaction policies and procedures. The Board also reviewed the performance of other series of registered investment companies with substantially similar investment objectives and strategies as the iShares MSCI EAFE Index Fund (the “EAFE Fund”) for which BGFA provides investment advisory services, noting that BGFA generally performed in line with its various benchmarks over relevant periods. The Board further noted that BGFA does not serve as investment adviser for any other series of registered investment companies with substantially similar investment objectives and strategies as the iShares FTSE/Xinhua China 25 Index, iShares MSCI EAFE Value Index and iShares MSCI EAFE Growth Index Funds; therefore, comparative performance information was generally not available for those particular Funds. The Board also noted that the Funds had met their investment objectives consistently since their respective inception dates. Based on review of this information, the Board concluded that the nature, extent and quality of services to be provided by BGFA to the Funds under the Advisory Contract were appropriate and mitigated in favor of the Board’s approval of the Advisory Contract for the coming year.

The Board reviewed statistical information prepared by Lipper Inc. (“Lipper”), an independent provider of investment company data, regarding the expense ratio components, including advisory fees, waivers/reimbursements, and gross and net total expenses of each Fund in comparison with the same information for other funds registered under the 1940 Act objectively selected solely by Lipper as comprising each Fund’s applicable peer group (the “Lipper Group”). In addition, the Board reviewed statistical information prepared by Lipper regarding the performance of each Fund for the one-, three-, and five-year and “last quarter” periods ended March 31, 2007, as applicable, and a comparison of each Fund’s performance to that of the funds in its Lipper Group for the same periods. Because there are few, if any, exchange traded funds or index funds that track indexes similar to those tracked by the Funds, the Lipper Groups included in part, at the request of BGFA, mutual funds, closed-end funds, exchange traded funds, and funds with differing investment objective classifications, investment focuses and other characteristics (e.g., actively managed funds and funds sponsored by “at cost” service providers). In support of its review of the statistical information, the Board was provided with a detailed description of the methodology used by Lipper to determine the applicable Lipper Groups and to prepare this information. The Board further noted that due to the limitations in providing

Board Review and Approval of Investment Advisory Contract (Unaudited) (Continued)

comparable funds in the various Lipper Groups, the statistical information may or may not provide meaningful direct comparisons to the Funds. The Board noted that most of the Funds generally performed in line with the funds in their respective Lipper Groups over the relevant periods; however, certain of the Funds may have underperformed or outperformed funds in their respective Lipper Groups over such periods. In considering this information, the Board noted that the Lipper Groups include funds that may have different investment objectives and/or benchmarks from the Funds. In addition, the Board noted that each Fund seeks to track an index and that during the prior year the Board received periodic reports on the Funds’ performance in comparison with their relevant benchmark indexes. Such comparative performance information was also considered by the Board.

The Board also noted that the investment advisory fees and overall expenses for the Funds were generally lower than the median or average investment advisory fee rates and overall expense components of the funds in their respective Lipper Groups. The Board also reviewed statistical information from Lipper displaying the effects of the current breakpoints in the investment advisory fee rates for the EAFE Fund and the effects of the proposed breakpoints in the investment advisory fee rates for the iShares FTSE/Xinhua China 25 Index Fund (the “Xinhua Fund”) (as discussed below) at various assets levels of such Funds as compared to their Lipper Group. Based on this review, the Board concluded that the investment advisory fees and expense levels and the historical performance of each Fund, as managed by BGFA, as compared to the investment advisory fees and expense levels and performance of the funds in the relevant Lipper Group, were satisfactory for the purposes of approving the Advisory Contract for the coming year.

COSTS OF SERVICES PROVIDED TO FUNDS AND PROFITS REALIZED BY BGFA AND AFFILIATES

The Board reviewed information about the profitability to BGFA of the Funds based on the fees payable to BGFA and its affiliates (including fees under the Advisory Contract), and all other sources of revenue and expense to BGFA and its affiliates for the last calendar year. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BGI from securities lending by the Trust (including any securities lending by the Funds). The Board also discussed BGFA’s profit margin as reflected in the Funds’ profitability analysis and reviewed information regarding economies of scale (as discussed below). Based on this review, the Board concluded that the profits to be realized by BGFA and its affiliates under the Advisory Contract and from other relationships between the Funds and BGFA and/or its affiliates, if any, were within the range the Board considered reasonable and appropriate.

In connection with its review of the Funds’ profitability analysis, the Board reviewed information regarding economies of scale or other efficiencies that may result from increases in the Funds’ assets. The Board was also presented with materials regarding the current breakpoints in the investment advisory fee rates for the EAFE Fund and the proposed breakpoints in the investment advisory fee rates at certain asset levels of the Xinhua Fund. The Board noted that the Advisory Contract did not provide for any breakpoints in the other Funds’ investment advisory fee rates as the assets of the Funds increase. However, the Board further noted that possible future economies of scale for the other Funds had been taken into consideration by fixing the investment advisory fees at rates at the lower end of the marketplace, effectively giving Fund shareholders, from inception, the benefits of the lower average fee shareholders would have received from a fee structure with declining breakpoints where the initial fee was higher. The Board discussed the substantial growth in assets of certain iShares funds, including the EAFE Fund, over the last few years. The Board also reviewed BGFA’s historic profitability as investment adviser to the iShares fund complex and noted that BGFA had made a significant investment in the iShares funds and had incurred operating losses during earlier years when the iShares funds, including the Funds, had not yet reached scale. In light of this history, the Board determined that the current breakpoints for the EAFE Fund and the proposed breakpoints for the Xinhua Fund were appropriate and warranted for these Funds but that reductions in fee rates or additions of breakpoints were not warranted at this juncture for the other Funds. Based on this review, as well as the discussions described above in connection with the Lipper Group comparisons, the Board, recognizing its responsibility to consider this issue at least annually, concluded that the structure of the investment advisory fees, with

Board Review and Approval of Investment Advisory Contract (Unaudited) (Continued)

the current breakpoints for the EAFE Fund and the proposed breakpoints for the Xinhua Fund, reflects the current sharing and potential further sharing of economies of scale with the Funds’ shareholders.

FEES AND SERVICES PROVIDED FOR OTHER COMPARABLE FUNDS/ACCOUNTS MANAGED BY BGFA AND ITS AFFILIATES

The Board received and considered information regarding the Funds’ annual investment advisory fee rates under the Advisory Contract in comparison to the investment advisory/management fee rates for other funds/accounts for which BGFA or BGI, an affiliate of BGFA, provides investment advisory/management services, including other funds registered under the 1940 Act, collective funds and separate accounts (together, the “Other Accounts”). The Board noted that comparative investment advisory/management fee information was available for the EAFE Fund but not the other Funds, as BGFA and its affiliates do not manage any Other Accounts with substantially similar investment objectives and strategies as those Funds. However, the Board also noted that BGFA provided the Board with general information regarding how the level of services provided to the Other Accounts differed from the level of services provided to the Funds. In reviewing the comparative investment advisory/management fee information for the EAFE Fund, the Board considered the general structure of investment advisory/management fees in relation to the nature and extent of services provided to the EAFE Fund in comparison with the nature and extent of services provided to the Other Accounts, including, among other things, the level of complexity in managing the EAFE Fund and the Other Accounts under differing regulatory requirements and client guidelines. The Board noted that the investment advisory fee rate for the EAFE Fund under the Advisory Contract was generally higher than the investment advisory/management fee rates for the Other Accounts for which BGFA or BGI provides investment advisory/management services, but that the differences appeared to be attributable to, among other things, the type and level of services provided and/or the asset levels of the Other Accounts. Based on this review, the Board determined that the investment advisory fee rates under the Advisory Contract, with the current breakpoints for the EAFE Fund and the proposed breakpoints for the Xinhua Fund, do not constitute fees that are so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded that the investment advisory fee rates under the Advisory Contract are fair and reasonable.

The Board reviewed any ancillary revenue received by BGFA and/or its affiliates in connection with the services provided to the Funds by BGFA, such as any payment of revenue to BGI, the Trust’s securities lending agent, for loaning any portfolio securities, and payment of advisory fees and/or administration fees to BGFA and BGI in connection with any investments by the Funds in other funds for which BGFA provides investment advisory services and/or BGI provides administration services. The Board noted that BGFA does not use soft dollars or consider the value of research or other services that may be provided to BGFA (including its affiliates) in selecting brokers for portfolio transactions for the Funds. The Board further noted that any portfolio transactions on behalf of the Funds placed through a BGFA affiliate are reported to the Board pursuant to Rule 10f-3 and Rule 17e-1, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Funds’ shareholders.

Based on this analysis, the Board determined that the Advisory Contract, including the investment advisory fee rates, with the current breakpoints for the EAFE Fund and the proposed breakpoints for the Xinhua Fund, is fair and reasonable in light of all relevant circumstances, and concluded that it is in the best interest of the Funds and their shareholders to approve the Advisory Contract, with the fee schedule to the Advisory Contract as proposed to be amended to reflect the addition of breakpoints for the Xinhua Fund, for the coming year.

The tables that follow present information about the differences between the daily market price on secondary markets for shares of a 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 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 Funds included in this report. The information shown for each Fund is for five calendar years (or for each full calendar quarter completed after the inception date of such Fund if less than five years) through the date of the most recent calendar quarter-end. The specific periods covered for each Fund are disclosed in the table for such Fund.

Each line in the table shows the number of trading days in which the 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.

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 he or she resigns, is removed, dies, retires or becomes incapacitated. Each Officer serves until he or she resigns, is removed, dies, retires or becomes disqualified.

iShares Trust, iShares, Inc., Barclays Global Investors Funds (“BGIF”), Master Investment Portfolio (“MIP”) and Barclays Foundry Investment Trust (“BFIT”) 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 135 portfolios within the fund complex. In addition, Lee T. Kranefuss serves as a Trustee for BGIF, MIP and BFIT and oversees an additional 24 portfolios within the fund complex.

Unless otherwise noted in the tables below, the address for each Trustee and Officer is c/o Barclays Global Investors, N.A., 45 Fremont Street, San Francisco, California 94105. The Board has designated George G.C. Parker as its Lead Independent Trustee. Additional information about the Funds’ Trustees and Officers may be found in the Funds’ combined Statement of Additional Information, which is available without charge, upon request, by calling toll-free 1-800-474-2737.

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 100 (OEF)

iShares S&P 500 (IVV)

iShares S&P 500 Growth (IVW)

iShares S&P 500 Value (IVE)

iShares S&P MidCap 400 (IJH)

iShares S&P MidCap 400 Growth (IJK)

iShares S&P MidCap 400 Value (IJJ)

iShares S&P SmallCap 600 (IJR)

iShares S&P SmallCap 600 Growth (IJT)

iShares S&P SmallCap 600 Value (IJS)

iShares S&P GSSI™ Natural Resources (IGE)

iShares S&P GSTI™ Networking (IGN)

iShares S&P GSTI™ Semiconductor (IGW)

iShares S&P GSTI™ Software (IGV)

iShares S&P GSTI™ Technology (IGM)

iShares Domestic Sector Index Funds

iShares Cohen & Steers Realty Majors (ICF)

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

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

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

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 Transportation Average (IYT)

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

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

iShares Nasdaq Biotechnology (IBB)

iShares Domestic Subsector Index Funds

iShares Dow Jones U.S. Aerospace & Defense (ITA)

iShares Dow Jones U.S. Broker-Dealers (IAI)

iShares Dow Jones U.S. Healthcare Providers (IHF)

iShares Dow Jones U.S. Home Construction (ITB)

iShares Dow Jones U.S. Insurance (IAK)

iShares Dow Jones U.S. Medical Devices (IHI)

iShares Dow Jones U.S. Oil & Gas Exploration & Production (IEO)

iShares Dow Jones U.S. Oil Equipment & Services (IEZ)

iShares Dow Jones U.S. Pharmaceuticals (IHE)

iShares Dow Jones U.S. Regional Banks (IAT)

iShares FTSE NAREIT Industrial/Office (FIO)

iShares FTSE NAREIT Mortgage REITs (REM)

iShares FTSE NAREIT Real Estate 50 (FTY)

iShares FTSE NAREIT Residential (REZ)

iShares FTSE NAREIT Retail (RTL)

iShares Global Index Funds

iShares S&P Global 100 (IOO)

iShares S&P Global Consumer Discretionary Sector (RXI)

iShares S&P Global Consumer Staples Sector (KXI)

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 Industrials Sector (EXI)

iShares S&P Global Materials Sector (MXI)

iShares S&P Global Technology Sector (IXN)

iShares S&P Global Telecommunications Sector (IXP)

iShares S&P Global Utilities Sector (JXI)

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 Russell Microcap™ (IWC)

iShares International Country 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 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 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/TOPIX 150 (ITF)

iShares Bond Funds

iShares Lehman Aggregate (AGG)

iShares Lehman Short Treasury (SHV)

iShares Lehman 1-3 Year Treasury (SHY)

iShares Lehman 3-7 Year Treasury (IEI)

iShares Lehman 7-10 Year Treasury (IEF)

iShares Lehman 10-20 Year Treasury (TLH)

iShares Lehman 20+ Year Treasury (TLT)

iShares Lehman TIPS (TIP)

iShares Lehman Credit (CFT)

iShares Lehman 1-3 Year Credit (CSJ)

iShares Lehman Intermediate Credit (CIU)

iShares iBoxx $ Investment Grade Corporate (LQD)

iShares Lehman Government/Credit (GBF)

iShares Lehman Intermediate Government/Credit (GVI)

iShares Lehman MBS Fixed-Rate (MBB)

iShares iBoxx $ High Yield Corporate (HYG)

iShares Specialty Index Funds

iShares KLD Select Social^SM(KLD)

iShares KLD 400 Social (DSI)

iShares Dow Jones Select Dividend (DVY)

iShares Dow Jones EPAC Select Dividend (IDV)

iShares S&P U.S. Preferred Stock (PFF)

iShares International Index Funds

iShares MSCI EAFE (EFA)

iShares MSCI EAFE Growth (EFG)

iShares MSCI EAFE Value (EFV)

iShares MSCI Emerging Markets (EEM)

iShares MSCI EMU (EZU)

iShares MSCI Pacific ex-Japan (EPP)

iShares S&P Europe 350 (IEV)

iShares S&P Latin America 40 (ILF)

iShares S&P World ex-U.S. Property (WPS)

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 NYSE Index Funds

iShares NYSE Composite (NYC)

iShares NYSE 100 (NY)

iShares^® is a registered trade mark of Barclays Global Investors, N.A. The iShares Funds are not sponsored, endorsed or issued by Lehman Brothers, nor are they sponsored, endorsed, issued, sold or promoted by Cohen & Steers Capital Management, Inc., Dow Jones & Company, Inc., FTSE International Limited (“FTSE”), FTSE/Xinhua Index Limited (“FXI”), iBoxx, KLD Research & Analytics, Inc., Morgan Stanley Capital International, Morningstar, Inc., The NASDAQ Stock Market, Inc., National Association of Real Estate Investment Trusts (“NAREIT”), 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. iBoxx is a registered trademark of International Index Company Limited. FXI does not make any warranty regarding the FTSE/Xinhua Index. All rights in the FTSE/Xinhua Index vest in FXI. Neither FTSE nor NAREIT makes any warranty regarding the FTSE NAREIT Real Estate 50 Index, FTSE NAREIT Residential Index, FTSE NAREIT Retail Index, FTSE NAREIT Mortgage REITs Index or FTSE NAREIT Industrial/Office Index; all rights vest in NAREIT. “FTSE” is a trade and service mark of London Stock Exchange and The Financial Times; “Xinhua” is a trade and service mark of Xinhua Financial Network Limited. “NAREIT^®” is a trademark of NAREIT.

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.

Effective May 9, 2007, the Fund and the Index changed their names from the iShares Goldman Sachs Technology Index Fund and the Goldman Sachs Technology Sector Index to the iShares S&P GSTI^™ Technology Index Fund and the S&P GSTI^™ Technology Index, respectively. On June 15, 2007, S&P changed the underlying methodology of the Index. Performance shown reflects the Goldman Sachs methodology through June 14, 2007 and the S&P methodology thereafter.

Total returns for the periods since inception are calculated from the inception date of the Fund (3/13/01). “Average Annual Total Returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative Total Returns” represent the total change in value of an investment over the periods indicated.

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 the 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 (3/19/01), the NAV of the Fund is used as a proxy for secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.


PORTFOLIO ALLOCATION As of 7/31/07
Industry	Percentage of Net Assets
Computers	27.52	%

Software	21.50

Semiconductors	17.02

Telecommunications	16.67

Internet	11.59

Electronics	2.69

Commercial Services	1.47

Office & Business Equipment	0.69

Distribution & Wholesale	0.42

Electrical Components & Equipment	0.17

Machinery	0.16

Entertainment	0.05

Short-Term and Other Net Assets	0.05


TOTAL	100.00	%


TEN LARGEST FUND HOLDINGS As of 7/31/07
Security	Percentage of Net Assets
Microsoft Corp.	8.17	%

Cisco Systems Inc.	7.14

International Business Machines Corp.	6.24

Intel Corp.	5.38

Hewlett-Packard Co.	5.04

Apple Inc.	4.68

Google Inc. Class A	4.67

Oracle Corp.	3.10

QUALCOMM Inc.	2.91

Dell Inc.	2.62


TOTAL	49.95	%

The iShares S&P GSTI^™ Technology Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the S&P GSTI^™ Technology Index (the “Index”). The Index has been developed as an equity benchmark for U.S.-traded technology-related stocks. The Index includes companies in the following categories: producers of sophisticated computer-related devices; electronics networking and internet services; producers of computer and internet software; consultants for information technology; and providers of computer services. The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month period ended July 31, 2007 (the “reporting period”), the Fund returned 31.09%, while the Index returned 31.68%.

Domestic equity markets delivered solid gains for the reporting period. A pause in interest-rate moves by the Federal Reserve Board (the “Fed”), sound economic growth, slowing inflation, and healthy corporate earnings levels all contributed to equity market strength during the reporting period. After raising rates eight times in the previous reporting period, the Fed held rates steady at 5.25% during the entire 12-month period ended July 31, 2007. Economic growth, as measured by gross domestic product (GDP) growth, continued to be healthy. Although growth slowed somewhat in the first calendar quarter of 2007, GDP growth rebounded in the second quarter to an annualized rate of 3.4%, its highest rate since the first quarter of 2006. Inflation levels provided another source of encouraging data, as core inflation declined during the second quarter of 2007, reaching its lowest level in three years. Corporate earnings levels remained healthy and continued to exceed many analysts’ expectations. Countering those factors, a slowing housing market and concerns surrounding lenders of sub-prime mortgages weighed on market performance in the final months of the reporting period, causing the markets to give back some of the strong gains achieved earlier in the reporting period.

Performance within the technology sector was very strong for the reporting period. Computer companies, chip makers and software producers all benefited from increased levels of spending on computers during the period. Select companies within the sector also enjoyed gains from high consumer demand for innovative new products.

All of the Fund’s ten largest holdings as of July 31, 2007 delivered double-digit gains for the reporting period. The strongest performer was Apple Inc., which introduced its popular iPhone^® product during the reporting period. Cisco Systems Inc. and Hewlett-Packard Co. also performed well, as did computer maker International Business Machines Corp. QUALCOMM Inc. posted the most modest gain among the ten largest holdings for the reporting period.

Effective May 9, 2007, the Fund and the Index changed their names from the iShares Goldman Sachs Networking Index Fund and the Goldman Sachs Technology Industry Multimedia Networking Index to the iShares S&P GSTI^™ Networking Index Fund and the S&P GSTI^™ Multimedia Networking Index, respectively. On June 15, 2007, S&P changed the underlying methodology of the Index. Performance shown reflects the Goldman Sachs methodology through June 14, 2007 and the S&P methodology thereafter.

Total returns for the periods since inception are calculated from the inception date of the Fund (7/10/01). “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.

For purposes of calculating the total return of the Index, dividends and distributions made by companies included in the Index generally are assumed to be reinvested in the securities issued by those companies. However, prior to December 31, 2002, the total returns of the Index did not reflect reinvestment of dividends and distributions. The performance of the Index would have been higher for periods prior to that date had dividends and distributions been assumed to be reinvested.

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 the 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 (7/13/01), the NAV of the Fund is used as a proxy for secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

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. However, prior to December 31, 2002, the total returns of the Index did not reflect reinvestment of dividends and distributions. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, an 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.


TEN LARGEST FUND HOLDINGS As of 7/31/07
Security	Percentage of Net Assets
Cisco Systems Inc.	8.52	%

Research in Motion Ltd.	7.44

QUALCOMM Inc.	7.38

Motorola Inc.	6.54

Juniper Networks Inc.	6.50

Corning Inc.	5.92

Harris Corp.	4.73

Tellabs Inc.	4.71

Avaya Inc.	4.37

Nortel Networks Corp.	4.27


TOTAL	60.38	%

The iShares S&P GSTI^™ Networking Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the S&P GSTI^™ Multimedia Networking Index (the “Index”). The Index has been developed as an equity benchmark for U.S.-traded multimedia networking stocks. The Index includes companies that are producers of telecom equipment, data networking and wireless equipment. The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month period ended July 31, 2007 (the “reporting period”), the Fund returned 34.59%, while the Index returned 37.90%.

Domestic equity markets delivered solid gains for the reporting period. A pause in interest-rate moves by the Federal Reserve Board (the “Fed”), sound economic growth, slowing inflation, and healthy corporate earnings levels all contributed to equity market strength during the reporting period. After raising rates eight times in the previous reporting period, the Fed held rates steady at 5.25% during the entire 12-month period ended July 31, 2007. Economic growth, as measured by gross domestic product (GDP) growth, continued to be healthy. Although growth slowed some what in the first calendar quarter of 2007, GDP growth rebounded in the second quarter to an annualized rate of 3.4%, its highest rate since the first quarter of 2006. Inflation levels provided another source of encouraging data, as core inflation declined during the second quarter of 2007, reaching its lowest level in three years. Corporate earnings levels remained healthy and continued to exceed many analysts’ expectations. Countering those factors, a slowing housing market and concerns surrounding lenders of sub-prime mortgages weighed on market performance in the final months of the reporting period, causing the markets to give back some of the strong gains achieved earlier in the reporting period.

Networking stocks as a group posted healthy gains for the reporting period as increased global demand and innovative products translated into strong performance for many companies in the group. Additionally, buyouts by private equity firms drove up stock prices for some companies.

Most of the Fund’s ten largest holdings as of July 31, 2007 posted gains for the reporting period. Research in Motion Ltd., maker of BlackBerry^® devices, delivered triple-digit gains for the reporting period, as did Juniper Networks Inc. Avaya Inc. and Cisco Systems Inc. also logged strong gains. Motorola Inc. posted a decline for the reporting period.

Effective May 9, 2007, the Fund and the Index changed their names from the iShares Goldman Sachs Semiconductor Index Fund and the Goldman Sachs Technology Industry Semiconductor Index to the iShares S&P GSTI^™ Semiconductor Index Fund and the S&P GSTI^™ Semiconductor Index, respectively. On June 15, 2007, S&P changed the underlying methodology of the Index. Performance shown reflects the Goldman Sachs methodology through June 14, 2007 and the S&P methodology thereafter.

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 the 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 (7/13/01), the NAV of the Fund is used as a proxy for secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

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. However, prior to December 31, 2002, the total returns of the Index did not reflect reinvestment of dividends and distributions. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, an 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.


TEN LARGEST FUND HOLDINGS As of 7/31/07
Security	Percentage of Net Assets
Applied Materials Inc.	9.51	%

Intel Corp.	8.34

Texas Instruments Inc.	8.18

NVIDIA Corp.	5.87

Broadcom Corp. Class A	5.58

Analog Devices Inc.	4.25

KLA-Tencor Corp.	3.98

MEMC Electronic Materials Inc.	3.80

Maxim Integrated Products Inc.	3.67

Linear Technology Corp.	3.34


TOTAL	56.52	%

The iShares S&P GSTI^™ Semiconductor Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the S&P GSTI^™ Semiconductor Index (the “Index”). The Index has been developed as an equity benchmark for U.S-traded semiconductor stocks. The Index includes companies that are producers of capital equipment or manufacturers of wafers and chips. The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month period ended July 31, 2007 (the “reporting period”), the Fund returned 19.16%, while the Index returned 19.82%.

The semiconductor group as a whole delivered solid gains for the reporting period, although performance within the group was mixed. In general, demand for electronics equipment helped to drive up share prices for chip makers. Companies involved in innovative areas, including solar applications, also performed well during the reporting period.

All of the Fund’s ten largest holdings as of July 31, 2007 posted gains for the reporting period. Graphics chip maker NVIDIA Corp. and wafer producer MEMC Electronic Materials Inc. both logged triple-digit gains for the reporting period. Applied Materials Inc. and the Class A shares of Broadcom Corp. also performed well, as did KLA-Tencor Corp. and Intel Corp. Maxim Integrated Products Inc. posted the most modest return among the Fund’s ten largest holdings, yet still produced a double-digit gain.

Effective May 9, 2007, the Fund and the Index changed their names from the iShares Goldman Sachs Software Index Fund and the Goldman Sachs Technology Industry Software Index to the iShares S&P GSTI^™ Software Index Fund and the S&P GSTI^™ Software Index, respectively. On June 15, 2007, S&P changed the underlying methodology of the Index. Performance shown reflects the Goldman Sachs methodology through June 14, 2007 and the S&P methodology thereafter.

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 the 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 (7/13/01), the NAV of the Fund is used as a proxy for secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

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. However, prior to December 31, 2002, the total returns of the Index did not reflect reinvestment of dividends and distributions. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, an 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.


TEN LARGEST FUND HOLDINGS As of 7/31/07
Security	Percentage of Net Assets
Microsoft Corp.	7.99	%

Oracle Corp.	7.62

Adobe Systems Inc.	6.91

Symantec Corp.	6.65

Electronic Arts Inc.	6.10

CA Inc.	5.60

Autodesk Inc.	4.93

Intuit Inc.	4.55

Citrix Systems Inc.	3.74

Cadence Design Systems Inc.	3.40


TOTAL	57.49	%

The iShares S&P GSTI^™ Software Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the S&P GSTI^™ Software Index (the “Index”). The Index has been developed as an equity benchmark for U.S.-traded software-related stocks. The Index includes companies that are producers of client/server applications, enterprise software, internet software, PC and entertainment software. The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities included in the Index. For the 12-month period ended July 31, 2007 (the “reporting period”), the Fund returned 21.79%, while the Index returned 22.15%.

The software market segment generally delivered strong gains for the reporting period, amid growing global consumer and business demand for computers and mobile devices. Demand for these products, in turn, translated into demand for software.

Nine of the Fund’s ten largest holdings as of July 31, 2007 delivered gains for the reporting period. Adobe Systems Inc. was the strongest performer, followed by Cadence Design Systems Inc. Software firms Oracle Corp. and Microsoft Corp. both performed well, as did Autodesk Inc. Intuit Inc. was the lone decliner amongst the ten largest holdings for the reporting period.

Effective May 9, 2007, the Fund and the Index changed their names from the iShares Goldman Sachs Natural Resources Index Fund and the Goldman Sachs Natural Resources Sector Index to the iShares S&P GSSI^™ Natural Resources Index Fund and the S&P GSSI^™ Natural Resources Index, respectively. On June 15, 2007, S&P changed the underlying methodology of the Index. Performance shown reflects the Goldman Sachs methodology through June 14, 2007 and the S&P methodology thereafter.

Total returns for the periods since inception are calculated from the inception date of the Fund (10/22/01). “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.

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 the 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 (10/26/01), the NAV of the Fund is used as a proxy for secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.


PORTFOLIO ALLOCATION As of 7/31/07
Industry	Percentage of Net Assets
Oil & Gas	60.97	%

Oil & Gas Services	15.63

Mining	13.04

Forest Products & Paper	3.15

Pipelines	2.65

Packaging & Containers	2.02

Coal	1.51

Building Materials	0.67

Manufacturing	0.14

Transportation	0.11

Short-Term and Other Net Assets	0.11


TOTAL	100.00	%


TEN LARGEST FUND HOLDINGS As of 7/31/07
Security	Percentage of Net Assets
Chevron Corp.	7.89	%

Exxon Mobil Corp.	7.64

Conoco Phillips	7.41

Schlumberger Ltd.	6.28

Occidental Petroleum Corp.	2.66

EnCana Corp.	2.59

Suncor Energy Inc.	2.31

Marathon Oil Corp.	2.10

Alcan Inc.	2.09

Valero Energy Corp.	2.08


TOTAL	43.05	%

The iShares S&P GSSI^™ Natural Resources Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the S&P GSSI^™ Natural Resources Index (the “Index”). The Index has been developed as an equity benchmark for U.S.-traded natural resource-related stocks. The Index includes companies in the following categories: extractive industries, energy companies, owners and operators of timber tracts, forestry services, producers of pulp and paper, and owners of plantations. The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities included in the Index. For the 12-month period ended July 31, 2007 (the “reporting period”), the Fund returned 19.56%, while the Index returned 20.17%.

Natural resources as a group performed strongly during the reporting period. High oil prices continued to benefit the share prices of oil companies. In addition, increased global demand for, and low inventories of, metals drove up prices of many metals and mining companies during the reporting period.

All of the Fund’s ten largest holdings as of July 31, 2007 delivered gains for the reporting period. Metals company Alcan Inc. was the strongest performer, logging triple-digit gains. Oil exploration and service company Schlumberger Ltd. also performed well. In addition, oil companies Chevron Corp. and Exxon Mobil Corp. both delivered solid gains. Valero Energy Corp. posted a slight gain for the reporting period.

Total returns for the periods since inception are calculated from the inception date of the Fund (3/30/04). “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 the 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 (4/2/04), the NAV of the Fund is used as a proxy for secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.


PORTFOLIO ALLOCATION As of 7/31/07
Sector*	Percentage of Net Assets
Financial	23.65	%

Consumer Non-Cyclical	16.61

Energy	14.36

Industrial	11.12

Communications	9.95

Consumer Cyclical	8.27

Basic Materials	6.15

Technology	4.67

Utilities	4.46

Diversified	0.62

Short-Term and Other Net Assets	0.14


TOTAL	100.00	%


TEN LARGEST FUND HOLDINGS As of 7/31/07
Security	Percentage of Net Assets
Exxon Mobil Corp.	2.34	%

General Electric Co.	1.94

AT&T Inc.	1.18

Citigroup Inc.	1.14

BP PLC SP ADR	1.09

HSBC Holdings PLC SP ADR	1.07

Bank of America Corp.	1.06

Procter & Gamble Co.	0.94

Chevron Corp.	0.90

Toyota Motor Corp. SP ADR	0.89


TOTAL	12.55	%

The iShares NYSE Composite Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the NYSE Composite Index^® (the “Index”). The Index measures the performance of all common stocks, American Depositary Receipts (“ADRs”), real estate investment trusts (“REITs”) and tracking stocks listed on the NYSE. The securities in the Index represent a broad spectrum of large-, mid- and small-capitalization companies. The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities included in the Index. For the 12-month period ended July 31, 2007 (the “reporting period”), the Fund returned 18.10%, while the Index returned 18.42%.

All of the Index’s ten sectors posted positive returns for the reporting period. The materials sector and telecommunications services sector were the two strongest performers, although combined they represented less than 14% of the Index as of July 31, 2007. Industrials and information technology both also performed well, as did energy. Healthcare delivered the most modest gains among the sectors for the reporting period.

Among the Fund’s ten largest holdings as of July 31, 2007, performance was mostly positive for the reporting period. The strongest performer was telecommunications company AT&T Inc. Oil companies Chevron Corp. and Exxon Mobil Corp. both performed well, as did General Electric Co. Bank of America Corp. and BP PLC SP ADR both declined for the reporting period.

Total returns for the periods since inception are calculated from the inception date of the Fund (3/29/04). “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 the 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 (4/2/04), the NAV of the Fund is used as a proxy for secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.


PORTFOLIO ALLOCATION As of 7/31/07
Sector*	Percentage of Net Assets
Consumer Non-Cyclical	23.81	%

Financial	23.14

Energy	15.01

Industrial	13.29

Communications	9.19

Consumer Cyclical	6.38

Technology	5.51

Utilities	1.84

Basic Materials	1.71

Short-Term and Other Net Assets	0.12


TOTAL	100.00	%


TEN LARGEST FUND HOLDINGS As of 7/31/07
Security	Percentage of Net Assets
Exxon Mobil Corp.	6.66	%

General Electric Co.	5.50

Citigroup Inc.	3.34

AT&T Inc.	3.32

Bank of America Corp.	3.14

Procter & Gamble Co.	2.70

Chevron Corp.	2.53

Johnson & Johnson	2.41

JPMorgan Chase & Co.	2.30

Pfizer Inc.	2.30


TOTAL	34.20	%

The iShares NYSE 100 Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the NYSE U.S.100 Index^® (the “Index”). The Index measures the performance of the largest 100 U.S. companies, based on market capitalization, listed on the NYSE. The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities included in the Index. For the 12-month period ended July 31, 2007 (the “reporting period”), the Fund returned 13.73%, while the Index returned 13.94%.

All of the Index’s ten sectors posted positive returns for the reporting period. The telecommunications services and information technology sectors were the two strongest performing sectors, although they combined to represent less than 13% of the Index at July 31, 2007. Additionally, energy and industrials both performed well. The largest sector weighting in the Index, financials, delivered the most modest gain amongst the sectors for the reporting period.

Among the Fund’s ten largest holdings as of July 31, 2007, performance was mostly positive for the reporting period. The strongest performer was telecommunications company AT&T Inc. Oil companies Chevron Corp. and Exxon Mobil Corp. both performed well, as did General Electric Co. Pharmaceutical company Pfizer Inc. and Bank of America Corp. both declined for the reporting period.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from February 1, 2007 to July 31, 2007.


Security	Shares	Value
COMMON STOCKS – 99.95%

COMMERCIAL SERVICES – 1.47%
Alliance Data Systems Corp.^a	10,068	$	773,222
Bearing Point Inc.^a	29,199		190,377
Convergys Corp.^a	21,135		402,622
Euronet Worldwide Inc.^a	6,980		177,362
Gartner Inc.^a	7,630		159,696
Hewitt Associates Inc. Class A^a	7,551		225,926
Iron Mountain Inc.^a	26,419		707,765
MPS Group Inc.^a	15,042		200,510
Western Union Co.	118,943		2,372,913
Wright Express Corp.^a	5,922		201,703

			5,412,096

COMPUTERS – 27.52%
Affiliated Computer Services Inc. Class A^a	15,633		838,867
Apple Inc.^a	130,434		17,185,984
BISYS Group Inc. (The)^a	17,516		209,667
Brocade Communications Systems Inc.^a	59,712		420,372
CACI International Inc. Class A^a	4,476		198,913
Cadence Design Systems Inc.^a	42,676		913,266
Ceridian Corp.^a	21,701		735,664
Cognizant Technology Solutions Corp.^a	22,035		1,784,394
Computer Sciences Corp.^a	27,013		1,504,084
Dell Inc.^a	344,393		9,632,672
Diebold Inc.	9,943		503,812
DST Systems Inc.^a	8,642		655,669
Electronic Data Systems Corp.	78,157		2,109,457
Electronics For Imaging Inc.^a	8,494		223,052
EMC Corp.^a	311,397		5,763,958
FactSet Research Systems Inc.	5,640		372,184
Henry (Jack) & Associates Inc.	12,755		306,375
Hewlett-Packard Co.	402,314		18,518,513
Imation Corp.	5,080		158,902
International Business Machines Corp.	207,155		22,921,701
Komag Inc.^a	4,364		139,692
Lexmark International Inc. Class A^a	14,137		558,977
Mentor Graphics Corp.^a	12,685		152,347
MICROS Systems Inc.^a	6,052		322,451
NCR Corp.^a	27,690		1,445,972
Network Appliance Inc.^a	55,966		1,586,076


Security	Shares	Value
Palm Inc.^a	15,489	$	231,096
Perot Systems Corp. Class A^a	10,786		164,163
Research in Motion Ltd.^a	23,961		5,127,654
Riverbed Technology Inc.^a	2,351		103,820
SanDisk Corp.^a,b	32,624		1,749,625
SRA International Inc. Class A^a	6,145		146,374
Sun Microsystems Inc.^a	542,449		2,766,490
Synopsys Inc.^a	21,614		528,678
Unisys Corp.^a	51,494		416,586
Western Digital Corp.^a	34,322		732,775

			101,130,282

DISTRIBUTION & WHOLESALE – 0.42%
CDW Corp.^a	9,651		812,325
Ingram Micro Inc. Class A^a	21,569		432,458
Tech Data Corp.^a	8,219		307,966

			1,552,749

ELECTRICAL COMPONENTS & EQUIPMENT – 0.17%
Molex Inc.	21,602		612,201

			612,201

ELECTRONICS – 2.69%
Agilent Technologies Inc.^a	60,489		2,307,655
Amphenol Corp. Class A	26,871		920,600
Arrow Electronics Inc.^a	18,386		702,713
Avnet Inc.^a	20,408		773,055
AVX Corp.	9,298		148,675
Benchmark Electronics Inc.^a	10,585		234,987
Celestica Inc.^a	29,721		175,651
Cogent Inc.^a	6,016		80,073
Cymer Inc.^a	5,222		223,241
Dolby Laboratories Inc. Class A^a	5,246		174,482
FLIR Systems Inc.^a	9,982		435,714
Itron Inc.^a	4,484		356,164
Jabil Circuit Inc.	28,941		652,041
L-1 Identity Solutions Inc.^a	6,003		102,891
National Instruments Corp.	9,781		316,415
Plexus Corp.^a	6,468		156,849
Sanmina-SCI Corp.^a	77,387		212,814
Solectron Corp.^a	136,911		514,785
Tektronix Inc.	12,062		396,237
Trimble Navigation Ltd.^a	17,799		587,901
Vishay Intertechnology Inc.^a	27,502		426,556

			9,899,499


Security	Shares	Value
ENTERTAINMENT – 0.05%
Macrovision Corp.^a	7,905	$	187,981

			187,981
INTERNET – 11.59%
Akamai Technologies Inc.^a	24,845		843,736
Amazon.com Inc.^a	47,444		3,726,252
aQuantive Inc.^a	12,172		805,178
Avocent Corp.^a	7,349		200,995
CheckFree Corp.^a	13,081		481,904
CNET Networks Inc.^a	21,789		164,071
Digital River Inc.^a	5,915		266,234
EarthLink Inc.^a	17,252		119,901
eBay Inc.^a	172,276		5,581,742
Equinix Inc.^a	4,103		356,592
Expedia Inc.^a	27,795		739,625
F5 Networks Inc.^a	6,200		537,478
Google Inc. Class A^a	33,633		17,152,830
IAC/InterActiveCorp^a	31,786		913,530
j2 Global Communications Inc.^a	7,308		238,533
McAfee Inc.^a	24,096		864,083
NetFlix Inc.^a,b	9,611		165,598
NutriSystem Inc.^a,b	4,501		250,796
Openwave Systems Inc.	13,313		70,026
Priceline.com Inc.^a	1,550		98,890
RealNetworks Inc.^a	19,873		141,496
Symantec Corp.^a	140,965		2,706,528
TIBCO Software Inc.^a	31,342		254,810
ValueClick Inc.^a	14,799		316,403
VeriSign Inc.^a	37,336		1,108,506
Websense Inc.^a	6,378		127,305
Yahoo! Inc.^a	186,841		4,344,053

			42,577,095
MACHINERY – 0.16%
Intermec Inc.^a,b	8,747		224,186
Zebra Technologies Corp. Class A^a	10,203		369,655

			593,841
OFFICE & BUSINESS EQUIPMENT – 0.69%
Xerox Corp.^a	146,284		2,554,119

			2,554,119


Security	Shares	Value
SEMICONDUCTORS – 17.02%
Advanced Micro Devices Inc.^a	86,445	$	1,170,465
Altera Corp.	53,414		1,239,205
AMIS Holdings Inc.^a	8,557		88,223
Amkor Technology Inc.^a	13,664		168,887
Analog Devices Inc.	49,305		1,747,862
Applied Materials Inc.	207,140		4,565,366
Applied Micro Circuits Corp.^a	42,148		123,072
Atmel Corp.^a	68,430		368,838
Broadcom Corp. Class A^a	70,249		2,304,870
Conexant Systems Inc.^a	67,940		89,001
Cree Inc.^a,b	12,399		317,662
Cypress Semiconductor Corp.^a	22,495		563,725
Emulex Corp.^a	12,459		246,688
Entegris Inc.^a	18,762		202,254
Fairchild Semiconductor International Inc. Class A^a	18,218		332,479
FormFactor Inc.^a	6,990		268,346
Integrated Device Technology Inc.^a	29,317		476,988
Intel Corp.	837,856		19,790,159
International Rectifier Corp.^a	10,711		393,201
Intersil Corp. Class A	20,177		590,177
KLA-Tencor Corp.	28,862		1,639,073
Lam Research Corp.^a	20,287		1,173,400
Linear Technology Corp.	37,215		1,326,715
LSI Corp.^a	117,267		844,322
Maxim Integrated Products Inc.	48,342		1,532,441
MEMC Electronic Materials Inc.^a	26,034		1,596,405
Micrel Inc.	11,022		114,078
Microchip Technology Inc.	32,532		1,181,237
Micron Technology Inc.^a	107,442		1,275,337
Microsemi Corp.^a	11,133		259,510
MKS Instruments Inc.^a	6,939		157,515
National Semiconductor Corp.	43,503		1,130,643
Novellus Systems Inc.^a	18,838		537,260
NVIDIA Corp.^a	53,478		2,447,153
OmniVision Technologies Inc.^a,b	7,567		129,925
ON Semiconductor Corp.^a	16,613		196,366
PMC-Sierra Inc.^a	31,036		236,494
QLogic Corp.^a	24,147		320,914
Rambus Inc.^a	14,451		195,233


Security	Shares	Value
Semtech Corp.^a	10,252	$	166,595
Silicon Image Inc.^a	12,014		81,935
Silicon Laboratories Inc.^a	7,996		278,501
SiRF Technology Holdings Inc.^a	7,581		177,699
Skyworks Solutions Inc.^a	23,531		186,366
Spansion Inc. Class A^a	10,606		112,530
Teradyne Inc.^a	28,171		442,003
Tessera Technologies Inc.^a	7,313		300,784
Texas Instruments Inc.	216,036		7,602,307
Varian Semiconductor Equipment Associates Inc.^a	11,772		553,284
Xilinx Inc.	46,465		1,161,625
Zoran Corp.^a	6,898		130,027

			62,535,145

SOFTWARE – 21.50%
ACI Worldwide Inc.^a	5,487		167,518
Activision Inc.^a	35,540		608,089
Acxiom Corp.	10,954		275,603
Adobe Systems Inc.^a	93,641		3,772,796
Advent Software Inc.^a	3,893		148,051
ANSYS Inc.^a	11,384		296,439
Autodesk Inc.^a	37,198		1,576,079
Automatic Data Processing Inc.	85,164		3,953,313
Avid Technology Inc.^a	5,944		190,802
BEA Systems Inc.^a	60,289		746,378
BMC Software Inc.^a	31,330		899,798
Broadridge Financial Solutions Inc.	20,953		368,563
CA Inc.	63,556		1,593,984
Citrix Systems Inc.^a	27,785		1,004,983
Cognos Inc.^a	13,374		536,565
Compuware Corp.^a	48,703		454,399
CSG Systems International Inc.^a	6,672		166,933
eFunds Corp.^a	6,979		249,499
Electronic Arts Inc.^a	46,854		2,278,979
Fair Isaac Corp.	8,825		346,470
Fidelity National Information Services Inc.	25,289		1,255,093
First Data Corp.	116,499		3,703,503
Fiserv Inc.^a	25,631		1,266,684
Global Payments Inc.	9,335		349,129
Informatica Corp.^a	12,450		173,553


Security	Shares	Value
Intuit Inc.^a	52,370	$	1,499,877
Lawson Software Inc.^a	11,284		107,537
MasterCard Inc. Class A	9,957		1,601,086
Microsoft Corp.	1,035,826		30,028,596
MicroStrategy Inc. Class A^a	1,339		97,894
MoneyGram International Inc.	12,528		320,592
NAVTEQ Corp.^a	14,585		789,486
Novell Inc.^a	53,798		360,985
Nuance Communications Inc.^a	19,126		315,196
Open Text Corp.^a	7,083		133,019
Oracle Corp.^a	595,219		11,380,587
Parametric Technology Corp.^a	16,910		298,123
Paychex Inc.	52,402		2,168,395
Quest Software Inc.^a	12,481		184,719
Red Hat Inc.^a	29,478		613,732
Salesforce.com Inc.^a	14,059		546,333
Sybase Inc.^a	13,406		317,990
Take-Two Interactive Software Inc.^a,b	10,574		186,420
THQ Inc.^a	9,652		277,592
Total System Services Inc.	30,365		854,167
Trident Microsystems Inc.^a	8,760		133,240
VeriFone Holdings Inc.^a	8,273		301,220
Wind River Systems Inc.^a	12,141		116,068

			79,016,057

TELECOMMUNICATIONS – 16.67%
ADC Telecommunications Inc.^a	17,264		322,664
ADTRAN Inc.	9,948		259,543
Andrew Corp.^a	22,927		322,354
Anixter International Inc.^a	4,718		389,943
Arris Group Inc.^a	15,888		235,460
Atheros Communications Inc.^a	8,040		224,155
Avaya Inc.^a	68,891		1,139,457
Black Box Corp.	2,463		99,136
Ciena Corp.^a	12,993		474,634
Cisco Systems Inc.^a	907,989		26,249,962
CommScope Inc.^a	9,269		504,512
Corning Inc.^a	239,209		5,702,743
Foundry Networks Inc.^a	21,492		378,044
Harris Corp.	20,304		1,114,284
InterDigital Inc.^a	7,384		206,383
JDS Uniphase Corp.^a	31,294		448,443


Security	Shares	Value
Juniper Networks Inc.^a	86,618	$	2,595,075
Motorola Inc.	351,186		5,966,650
Nortel Networks Corp.^a	66,124		1,430,923
Polycom Inc.^a	13,612		421,564
Powerwave Technologies Inc.^a	18,303		119,702
QUALCOMM Inc.	257,008		10,704,383
RF Micro Devices Inc.^a	27,078		187,921
SAVVIS Inc.^a	6,861		257,699
Sonus Networks Inc.^a	37,116		253,873
Sycamore Networks Inc.^a	16,982		70,645
Tekelec^a	10,003		128,138
Tellabs Inc.^a	65,460		742,971
3Com Corp.^a	59,567		238,268
UTStarcom Inc.^a,b	17,052		54,907

			61,244,436


TOTAL COMMON STOCKS (Cost: $377,630,019)			367,315,501

SHORT-TERM INVESTMENTS – 0.82%

MONEY MARKET FUNDS – 0.82%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares 5.31%^c,d	289,483		289,483
BGI Cash Premier Fund LLC 5.34%^c,d,e	2,725,785		2,725,785

			3,015,268


TOTAL SHORT-TERM INVESTMENTS (Cost: $3,015,268)			3,015,268


TOTAL INVESTMENTS IN SECURITIES – 100.77% (Cost: $380,645,287)			370,330,769

Other Assets, Less Liabilities – (0.77)%			(2,832,582	)


NET ASSETS – 100.00%		$	367,498,187

^a	Non-income earning security.

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

^c	Affiliated issuer. See Note 2.

^d	The rate quoted is the annualized seven-day yield of the fund at period end.

^e	This security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.


Security	Shares	Value
COMMON STOCKS – 99.93%

COMPUTERS – 7.95%
Research in Motion Ltd.^a,b	78,623	$	16,825,322
Riverbed Technology Inc.^a	26,236		1,158,582

			17,983,904

INTERNET – 5.45%
Avocent Corp.^a	128,522		3,515,077
F5 Networks Inc.^a	101,513		8,800,162

			12,315,239

TELECOMMUNICATIONS – 86.53%
ADC Telecommunications Inc.^a	299,738		5,602,103
ADTRAN Inc.	156,391		4,080,241
Andrew Corp.^a	396,899		5,580,400
Arris Group Inc.^a	273,640		4,055,345
Avaya Inc.^a	597,484		9,882,385
Ciena Corp.^a	222,618		8,132,236
Cisco Systems Inc.^a	666,101		19,256,980
CommScope Inc.^a	151,900		8,267,917
Corning Inc.^a	562,010		13,398,318
Foundry Networks Inc.^a	368,600		6,483,674
Harris Corp.	194,707		10,685,520
InterDigital Inc.^a	120,942		3,380,329
JDS Uniphase Corp.^a,b	532,955		7,637,245
Juniper Networks Inc.^a	490,987		14,709,970
Motorola Inc.	870,294		14,786,295
Nortel Networks Corp.^a	446,499		9,662,238
Polycom Inc.^a	224,669		6,957,999
Powerwave Technologies Inc.^a	331,395		2,167,323
QUALCOMM Inc.	400,921		16,698,360
Sonus Networks Inc.^a	645,753		4,416,951
Sycamore Networks Inc.^a	459,516		1,911,587
Tekelec^a	178,333		2,284,446
Tellabs Inc.^a	939,032		10,658,013
3Com Corp.^a	1,028,632		4,114,528
UTStarcom Inc.^a,b	270,335		870,479

			195,680,882


TOTAL COMMON STOCKS (Cost: $241,883,512)			225,980,025


Security	Shares	Value
SHORT-TERM INVESTMENTS – 6.28%

MONEY MARKET FUNDS – 6.28%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares 5.31%^c,d	220,901	$	220,901
BGI Cash Premier Fund LLC 5.34%^c,d,e	13,966,245		13,966,245

			14,187,146


TOTAL SHORT-TERM INVESTMENTS (Cost: $14,187,146)			14,187,146


TOTAL INVESTMENTS IN SECURITIES – 106.21% (Cost: $256,070,658)			240,167,171

Other Assets, Less Liabilities – (6.21)%			(14,035,616	)


NET ASSETS – 100.00%		$	226,131,555

^a	Non-income earning security.

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

^c	Affiliated issuer. See Note 2.

^d	The rate quoted is the annualized seven-day yield of the fund at period end.

^e	This security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.


Security	Shares	Value
COMMON STOCKS – 99.91%

ELECTRONICS – 0.56%
Cymer Inc.^a	40,018	$	1,710,770

			1,710,770

SEMICONDUCTORS – 97.95%
Advanced Micro Devices Inc.^a,b	643,687		8,715,522
Altera Corp.	396,861		9,207,175
AMIS Holdings Inc.^a	44,315		456,888
Amkor Technology Inc.^a	122,440		1,513,358
Analog Devices Inc.	363,843		12,898,234
Applied Materials Inc.	1,308,221		28,833,191
Applied Micro Circuits Corp.^a	322,808		942,599
Atmel Corp.^a	485,909		2,619,050
Broadcom Corp. Class A^a	515,777		16,922,643
Conexant Systems Inc.^a	550,080		720,605
Cree Inc.^a,b	93,115		2,385,606
Cypress Semiconductor Corp.^a,b	167,576		4,199,455
Entegris Inc.^a	128,887		1,389,402
Fairchild Semiconductor International Inc. Class A^a	133,760		2,441,120
FormFactor Inc.^a	51,342		1,971,019
Integrated Device Technology Inc.^a	219,483		3,570,988
Intel Corp.	1,070,580		25,287,100
International Rectifier Corp.^a	80,267		2,946,602
Intersil Corp. Class A	144,101		4,214,954
KLA-Tencor Corp.	212,324		12,057,880
Lam Research Corp.^a	149,687		8,657,896
Linear Technology Corp.	283,756		10,115,901
LSI Corp.^a	876,091		6,307,855
Maxim Integrated Products Inc.	351,495		11,142,392
MEMC Electronic Materials Inc.^a	187,890		11,521,415
Micrel Inc.	63,018		652,236
Microchip Technology Inc.	242,333		8,799,111
Micron Technology Inc.^a	819,445		9,726,812
Microsemi Corp.^a	84,737		1,975,220
MKS Instruments Inc.^a	42,147		956,737
National Semiconductor Corp.	316,591		8,228,200
Novellus Systems Inc.^a	141,291		4,029,619
NVIDIA Corp.^a	389,126		17,806,406
ON Semiconductor Corp.^a	147,493		1,743,367
PMC-Sierra Inc.^a	240,920		1,835,810
Rambus Inc.^a	99,728		1,347,325
Semtech Corp.^a	69,620		1,131,325
Silicon Image Inc.^a	97,123		662,379


Security	Shares	Value
Silicon Laboratories Inc.^a	60,815	$	2,118,187
Skyworks Solutions Inc.^a	184,834		1,463,885
Spansion Inc. Class A^a	57,412		609,141
Teradyne Inc.^a	210,607		3,304,424
Tessera Technologies Inc.^a	55,284		2,273,831
Texas Instruments Inc.	704,446		24,789,455
Varian Semiconductor Equipment Associates Inc.^a	85,586		4,022,542
Xilinx Inc.	338,546		8,463,650

			296,978,512
SOFTWARE – 0.34%
Trident Microsystems Inc.^a	68,098		1,035,771

			1,035,771
TELECOMMUNICATIONS – 1.06%
Atheros Communications Inc.^a	61,224		1,706,925
RF Micro Devices Inc.^a	218,655		1,517,466

			3,224,391

TOTAL COMMON STOCKS (Cost: $328,257,735)			302,949,444

SHORT-TERM INVESTMENTS – 3.95%

MONEY MARKET FUNDS – 3.95%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares 5.31%^c,d	294,195		294,195
BGI Cash Premier Fund LLC 5.34%^c,d,e	11,664,559		11,664,559

			11,958,754

TOTAL SHORT-TERM INVESTMENTS (Cost: $11,958,754)			11,958,754


TOTAL INVESTMENTS IN SECURITIES – 103.86% (Cost: $340,216,489)			314,908,198
Other Assets, Less Liabilities – (3.86)%			(11,697,810	)

NET ASSETS – 100.00%		$	303,210,388

^a	Non-income earning security.

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

^c	Affiliated issuer. See Note 2.

^d	The rate quoted is the annualized seven-day yield of the fund at period end.

^e	This security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.


Security	Shares	Value
COMMON STOCKS – 99.96%

COMPUTERS – 9.66%
Cadence Design Systems Inc.^a	302,461	$	6,472,665
FactSet Research Systems Inc.	40,507		2,673,057
Henry (Jack) & Associates Inc.	82,772		1,988,183
Mentor Graphics Corp.^a,b	92,461		1,110,457
MICROS Systems Inc.^a	43,678		2,327,164
Synopsys Inc.^a	155,223		3,796,755

			18,368,281

ENTERTAINMENT – 0.72%
Macrovision Corp.^a	57,505		1,367,469

			1,367,469

INTERNET – 10.86%
McAfee Inc.^a	172,070		6,170,430
Symantec Corp.^a	658,256		12,638,515
TIBCO Software Inc.^a	226,693		1,843,014

			20,651,959

SOFTWARE – 78.72%
Activision Inc.^a	266,782		4,564,640
Adobe Systems Inc.^a	326,299		13,146,587
Advent Software Inc.^a	20,610		783,798
ANSYS Inc.^a	84,099		2,189,938
Autodesk Inc.^a	221,180		9,371,397
BEA Systems Inc.^a	427,586		5,293,515
BMC Software Inc.^a	221,871		6,372,135
CA Inc.	424,971		10,658,273
Citrix Systems Inc.^a	196,783		7,117,641
Cognos Inc.^a	95,638		3,836,997
Compuware Corp.^a	326,383		3,045,153
Electronic Arts Inc.^a	238,459		11,598,646
Fair Isaac Corp.	62,159		2,440,362
Informatica Corp.^a	91,792		1,279,580
Intuit Inc.^a	302,356		8,659,476
Lawson Software Inc.^a	57,519		548,156
Microsoft Corp.	524,335		15,200,472
Micro Strategy Inc. Class A^a	10,304		753,325
NAVTEQ Corp.^a	102,561		5,551,627
Novell Inc.^a	383,822		2,575,446
Nuance Communications Inc.^a	152,575		2,514,436
Oracle Corp.^a	757,515		14,483,687
Parametric Technology Corp.^a	119,754		2,111,263
Quest Software Inc.^a	73,693		1,090,656


Security	Shares	Value
Red Hat Inc.^a	209,854	$	4,369,160
Salesforce.com Inc.^a,b	95,024		3,692,633
Sybase Inc.^a	99,079		2,350,154
Take-Two Interactive Software Inc.^a,b	76,326		1,345,627
THQ Inc.^a	70,192		2,018,722
Wind River Systems Inc.^a	81,061		774,943

			149,738,445


TOTAL COMMON STOCKS (Cost: $205,033,733)			190,126,154

SHORT-TERM INVESTMENTS – 1.31%

MONEY MARKET FUNDS – 1.31%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares 5.31%^c,d	151,456		151,456
BGI Cash Premier Fund LLC 5.34%^c,d,e	2,337,284		2,337,284

			2,488,740


TOTAL SHORT-TERM INVESTMENTS (Cost: $2,488,740)			2,488,740


TOTAL INVESTMENTS IN SECURITIES – 101.27% (Cost: $207,522,473)			192,614,894

Other Assets, Less Liabilities – (1.27)%			(2,412,824	)


NET ASSETS – 100.00%		$	190,202,070

^a	Non-income earning security.

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

^c	Affiliated issuer. See Note 2.

^d	The rate quoted is the annualized seven-day yield of the fund at period end.

^e	This security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.


Security	Shares	Value
COMMON STOCKS – 99.89%

BUILDING MATERIALS – 0.67%
Eagle Materials Inc.	25,217	$	1,102,739
Florida Rock Industries Inc.	51,468		3,268,733
Martin Marietta Materials Inc.	44,066		6,037,042
Texas Industries Inc.	27,556		2,171,688

			12,580,202

COAL – 1.51%
Alpha Natural Resources Inc.^a	50,669		904,442
Arch Coal Inc.	147,419		4,406,354
CONSOL Energy Inc.	190,082		7,916,915
Foundation Coal Holdings Inc.	45,194		1,575,011
Massey Energy Co.	81,393		1,737,741
Peabody Energy Corp.	277,466		11,725,713

			28,266,176

FOREST PRODUCTS & PAPER – 3.15%
Abitibi-Consolidated Inc.^a	441,512		1,046,383
Bowater Inc.^b	60,757		1,192,052
Domtar Corp.^a	462,282		4,396,302
International Paper Co.	463,092		17,166,820
Louisiana-Pacific Corp.^b	111,732		2,069,277
MeadWestvaco Corp.	197,447		6,424,925
Smurfit-Stone Container Corp.^a	280,803		3,310,667
Temple-Inland Inc.	114,336		6,646,352
Weyerhaeuser Co.	233,754		16,652,635

			58,905,413

MANUFACTURING – 0.14%
AptarGroup Inc.	69,971		2,546,944

			2,546,944

MINING – 13.04%
Agnico-Eagle Mines Ltd.	137,844		5,863,884
Alcan Inc.	400,883		39,046,004
Alcoa Inc.	911,938		34,836,032
Barrick Gold Corp.	915,630		30,124,227
Cameco Corp.	362,898		14,798,980
Freeport-McMoRan Copper & Gold Inc.	393,478		36,979,062
Goldcorp Inc.	737,624		18,743,026
IAMGOLD Corp.	333,635		2,765,834
Ivanhoe Mines Ltd.^a	299,560		4,283,708
Kinross Gold Corp.^a	613,601		7,964,541
Lundin Mining Corp.^a	393,785		5,142,832
Meridian Gold Inc.^a	113,645		3,208,198
Newmont Mining Corp.	473,867		19,783,947


Security	Shares	Value
Silver Standard Resources Inc.^a	62,296	$	2,153,573
Silver Wheaton Corp.^a,b	116,797		1,601,287
Titanium Metals Corp.^a	96,028		3,209,256
Vulcan Materials Co.	99,686		9,541,944
Yamana Gold Inc.	317,891		3,519,053

			243,565,388

OIL & GAS – 60.97%
Anadarko Petroleum Corp.	484,225		24,371,044
Apache Corp.	347,037		28,054,471
Bill Barrett Corp.^a	24,741		849,111
Cabot Oil & Gas Corp.	100,278		3,429,508
Canadian Natural Resources Ltd.	559,501		38,275,463
Cheniere Energy Inc.^a,b	63,739		2,397,861
Chesapeake Energy Corp.	435,690		14,830,888
Chevron Corp.	1,728,088		147,336,783
Cimarex Energy Co.	85,019		3,217,969
ConocoPhillips	1,711,466		138,354,911
Denbury Resources Inc.^a	124,689		4,987,560
Devon Energy Corp.	466,451		34,801,909
Diamond Offshore Drilling Inc.	67,766		6,992,096
EnCana Corp.	794,477		48,447,208
ENSCO International Inc.	156,786		9,574,921
EOG Resources Inc.	255,955		17,942,446
Exxon Mobil Corp.	1,676,349		142,707,590
Forest Oil Corp.^a	77,386		3,131,811
Frontier Oil Corp.	115,822		4,485,786
GlobalSantaFe Corp.	242,026		17,355,685
Grey Wolf Inc.^a,b	196,218		1,453,975
Helmerich & Payne Inc.	105,652		3,419,955
Hess Corp.	285,251		17,457,361
Holly Corp.	38,532		2,596,672
Marathon Oil Corp.	710,574		39,223,685
Mariner Energy Inc.^a	87,626		1,851,537
Murphy Oil Corp.	196,733		12,205,315
Nabors Industries Ltd.^a,b	301,483		8,815,363
Newfield Exploration Co.^a	137,690		6,616,005
Nexen Inc.	545,739		16,983,398
Noble Corp.	141,080		14,455,057
Noble Energy Inc.	179,935		11,001,226
Occidental Petroleum Corp.	875,074		49,634,197
Patterson-UTI Energy Inc.	161,046		3,687,953
Petro-Canada	519,277		28,352,524
Petrohawk Energy Corp.^a	189,714		2,843,813
Pioneer Natural Resources Co.	133,375		6,068,563


Security	Shares	Value
Plains Exploration & Production Co.^a	78,431	$	3,389,004
Pogo Producing Co.	62,012		3,302,759
Pride International Inc.^a	171,663		6,016,788
Quicksilver Resources Inc.^a	62,337		2,625,634
Range Resources Corp.	153,156		5,688,214
Rowan Companies Inc.	113,840		4,802,910
Southwestern Energy Co.^a	174,348		7,083,759
St. Mary Land & Exploration Co.	63,403		2,110,686
Suncor Energy Inc.	476,948		43,149,486
Sunoco Inc.	128,710		8,587,531
Talisman Energy Inc.	1,103,411		20,203,455
Tesoro Corp.	143,780		7,160,244
Transocean Inc.^a	302,629		32,517,486
Ultra Petroleum Corp.^a	161,396		8,923,585
Unit Corp.^a	48,694		2,681,092
Valero Energy Corp.	579,989		38,865,063
Western Refining Inc.	26,672		1,480,296
XTO Energy Inc.	401,458		21,891,505

			1,138,691,117

OIL & GAS SERVICES – 15.63%
Baker Hughes Inc.	333,769		26,384,440
BJ Services Co.	306,515		8,015,367
Cameron International Corp.^a	118,432		9,237,696
Dresser-Rand Group Inc.^a	38,475		1,427,423
FMC Technologies Inc.^a	70,740		6,474,125
Global Industries Ltd.^a	102,304		2,649,674
Grant Prideco Inc.^a	133,924		7,513,136
Halliburton Co.	961,702		34,640,506
Hanover Compressor Co.^a	113,312		2,700,225
Helix Energy Solutions Group Inc.^a	96,637		3,764,011
National Oilwell Varco Inc.^a	185,133		22,236,325
Oceaneering International Inc.^a	56,879		3,194,325
Oil States International Inc.^a	49,319		2,157,213
Schlumberger Ltd.	1,238,087		117,271,601
SEACOR Holdings Inc.^a	24,114		2,103,223
Smith International Inc.	213,785		13,128,537
Superior Energy Services Inc.^a	82,343		3,320,070
Tetra Technologies Inc.^a	74,416		2,069,509
Tidewater Inc.	59,886		4,097,400
Weatherford International Ltd.^a	352,355		19,495,802

			291,880,608

PACKAGING & CONTAINERS – 2.02%
Ball Corp.	105,164		5,391,758
Bemis Co. Inc.	115,301		3,397,921


Security	Shares	Value
Crown Holdings Inc.^a	167,292	$	4,108,692
Greif Inc. Class A	31,014		1,705,770
Owens-Illinois Inc.^a	159,185		6,364,216
Packaging Corp. of America	93,720		2,391,734
Pactiv Corp. ^a	142,202		4,495,005
Sealed Air Corp.	174,084		4,743,789
Silgan Holdings Inc.	23,463		1,211,160
Sonoco Products Co.	107,257		3,933,114

			37,743,159

PIPELINES – 2.65%
El Paso Corp.	732,803		12,201,170
Spectra Energy Corp.	669,160		17,043,505
Williams Companies Inc. (The)	626,532		20,205,657

			49,450,332

TRANSPORTATION – 0.11%
Overseas Shipholding Group Inc.	25,087		1,946,500

			1,946,500


TOTAL COMMON STOCKS (Cost: $1,504,589,427)			1,865,575,839

SHORT-TERM INVESTMENTS – 0.77%

MONEY MARKET FUNDS – 0.77%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares 5.31%^c,d	1,977,948		1,977,948
BGI Cash Premier Fund LLC 5.34%^c,d,e	12,479,267		12,479,267

			14,457,215


TOTAL SHORT-TERM INVESTMENTS (Cost: $14,457,215)			14,457,215


TOTAL INVESTMENTS IN SECURITIES – 100.66% (Cost: $1,519,046,642)			1,880,033,054

Other Assets, Less Liabilities – (0.66)%			(12,354,008	)


NET ASSETS – 100.00%		$	1,867,679,046

^a	Non-income earning security.

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

^c	Affiliated issuer. See Note 2.

^d	The rate quoted is the annualized seven-day yield of the fund at period end.

^e	This security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.


Security	Shares	Value
COMMON STOCKS – 99.82%

ADVERTISING – 0.19%
Catalina Marketing Corp.	270	$	8,151
Donnelley (R.H.) Corp^a	490		30,640
Getty Images Inc.^a	304		13,659
Harte-Hanks Inc.	297		6,994
Interpublic Group of Companies Inc. (The)^a	2,672		28,029
Omnicom Group Inc.	2,050		106,333
Publicis Groupe ADR	759		32,106

			225,912

AEROSPACE & DEFENSE – 1.49%
AAR Corp.^a	240		7,159
Alliant Techsystems Inc.^a	216		21,408
Armor Holdings Inc.^a	289		25,426
Boeing Co. (The)	4,077		421,684
CAE Inc.	1,377		17,791
Curtiss-Wright Corp.	320		13,942
DRS Technologies Inc.	279		14,608
EDO Corp.	81		2,677
Esterline Technologies Corp.^a	297		13,748
GenCorp Inc.^a	404		4,775
General Dynamics Corp.	1,836		144,236
Goodrich Corp.	648		40,766
L-3 Communications Holdings Inc.	647		63,121
Lockheed Martin Corp.	1,861		183,271
Moog Inc. Class A^a	162		6,937
Northrop Grumman Corp.	1,889		143,753
Orbital Sciences Corp.^a	383		8,116
Raytheon Co.	2,322		128,546
Rockwell Collins Inc.	918		63,067
Sequa Corp. Class A^a	82		13,538
Spirit AeroSystems Holdings Inc. Class A^a	285		10,345
Teledyne Technologies Inc.^a	276		12,246
Triumph Group Inc.	162		12,346
United Industrial Corp.	177		11,179
United Technologies Corp.	5,183		378,204

			1,762,889


Security	Shares	Value
AGRICULTURE – 1.29%
Altria Group Inc.	11,717	$	778,829
Archer-Daniels-Midland Co.	3,630		121,968
Bunge Ltd.	674		61,071
Carolina Group	670		50,779
Imperial Tobacco Group ADR	2,063		180,843
Monsanto Co.	3,055		196,895
Reynolds American Inc.	918		56,154
Tejon Ranch Co.^a	156		6,189
Universal Corp.	243		13,416
UST Inc.	890		47,659
Vector Group Ltd.^b	313		6,698

			1,520,501

AIRLINES – 0.26%
Air France-KLM ADR	1,217		54,887
AirTran Holdings Inc.^a	980		9,643
AMR Corp.^a	1,454		35,885
China Eastern Airlines Corp. Ltd. ADR^a,c	240		11,530
China Southern Airlines Co. Ltd. SP ADR^a	485		20,486
Continental Airlines Inc. Class B^a	718		22,624
Delta Air Lines Inc.^a	1,582		28,191
ExpressJet Holdings Inc.^a	872		4,561
LAN Airlines SA SP ADR	216		17,295
Southwest Airlines Co.	5,624		88,072
TAM SA ADR	344		9,322

			302,496

APPAREL – 0.36%
Benetton Group SpA SP ADR	220		7,330
Carter’s Inc.^a	509		10,776
Coach Inc.^a	2,052		93,284
Gildan Activewear Inc.^a	644		22,044
Guess? Inc.	108		5,129
Hanesbrands Inc.^a	548		16,993
Hartmarx Corp.^a	493		4,215
Kellwood Co.	162		4,154
Liz Claiborne Inc.	757		26,601
Nike Inc. Class B	1,944		109,739
Oxford Industries Inc.	209		8,444
Phillips-Van Heusen Corp.	333		17,336


Security	Shares	Value
Polo Ralph Lauren Corp.	297	$	26,537
Quiksilver Inc.^a	919		11,791
Stride Rite Corp.	216		4,400
VF Corp.	486		41,694
Wolverine World Wide Inc.	518		14,017

			424,484

AUTO MANUFACTURERS – 1.95%
DaimlerChrysler AG	5,539		502,664
Fiat SpA SP ADR	3,853		113,702
Ford Motor Co.^a	10,965		93,312
General Motors Corp.	3,046		98,690
Honda Motor Co. Ltd. SP ADR	10,566		380,587
Oshkosh Truck Corp.	461		26,392
Tata Motors Ltd. SP ADR	1,635		28,040
Toyota Motor Corp. SP ADR	8,735		1,053,703

			2,297,090

AUTO PARTS & EQUIPMENT – 0.30%
American Axle & Manufacturing Holdings Inc.	838		20,280
ArvinMeritor Inc.	648		12,850
Autoliv Inc.	540		30,202
BorgWarner Inc.	324		28,010
Goodyear Tire & Rubber Co. (The)^a	1,371		39,375
Johnson Controls Inc.	1,053		119,147
Magna International Inc. Class A	632		55,433
Modine Manufacturing Co.	194		4,966
Superior Industries International Inc.^b	378		6,993
Tenneco Inc.^a	326		11,508
TRW Automotive Holdings Corp.^a	275		9,039
Visteon Corp.^a	1,890		12,134

			349,937

BANKS – 10.32%
ABN AMRO Holding NV SP ADR	10,503		523,049
Allied Irish Banks PLC SP ADR	2,651		138,462
Banco Bilbao Vizcaya Argentaria SA SP ADR	21,352		521,416
Banco de Chile ADR	304		15,182
Banco Latinoamericano de Exportaciones SA	593		11,030
Banco Santander Central Hispano SA SP ADR	36,962		687,493


Security	Shares	Value
Banco Santander Chile SA ADR	351	$	16,736
BancorpSouth Inc.	654		15,271
Bank of America Corp.	26,435		1,253,548
Bank of Hawaii Corp.	297		14,262
Bank of Ireland SP ADR	1,598		119,850
Bank of Montreal	2,887		180,466
Bank of New York Mellon Corp. (The)	6,882		292,829
Bank of Nova Scotia	5,616		261,256
Barclays PLC SP ADR^d	9,694		542,767
BB&T Corp.	3,731		139,614
Canadian Imperial Bank of Commerce	1,944		169,167
Chittenden Corp.	531		17,762
City National Corp.	243		17,202
Colonial BancGroup Inc. (The)	1,109		24,187
Comerica Inc.	891		46,920
Commerce Bancorp Inc.	1,999		66,867
Community Bank System Inc.	432		7,772
Credicorp Ltd.	189		12,160
Credit Suisse Group PLC SP ADR	6,131		395,695
Cullen/Frost Bankers Inc.	430		21,358
Deutsche Bank AG	3,061		417,153
Discover Financial Services LLC^a	2,982		68,735
F.N.B. Corp. (Pennsylvania)	270		4,053
First BanCorp (Puerto Rico)	481		4,425
First Horizon National Corp.	1,391		44,123
First Republic Bank	232		12,702
HDFC Bank Ltd. ADR	540		46,769
HSBC Holdings PLC SP ADR	13,564		1,263,622
ICICI Bank Ltd. SP ADR	1,981		87,798
KeyCorp	2,784		96,577
Kookmin Bank SP ADR	2,096		179,816
Lloyds TSB Group PLC SP ADR	8,443		381,961
M&T Bank Corp.	691		73,446
Marshall & Ilsley Corp.	1,607		66,224
Mizuho Financial Group Inc. ADR	33,443		471,546
National Bank of Greece SA ADR	12,711		150,371
National City Corp.	4,495		132,108
PNC Financial Services Group Inc. (The)	2,163		144,164
Regions Financial Corp.	4,774		143,554
Royal Bank of Canada	7,290		372,082
Santander BanCorp	863		10,227


Security	Shares	Value
State Street Corp.	2,303	$	154,370
SunTrust Banks Inc.	2,143		167,797
Synovus Financial Corp.	1,753		49,014
TCF Financial Corp.	977		24,024
Toronto-Dominion Bank	4,044		259,301
U.S. Bancorp	10,412		311,839
UnionBanCal Corp.	732		40,450
Valley National Bancorp	1,303		27,585
Wachovia Corp.	11,749		554,670
Webster Financial Corp.	427		18,557
Wells Fargo & Co.	18,569		627,075
Westpac Banking Corp. SP ADR	2,187		241,773
Wilmington Trust Corp.	550		21,417

			12,181,649

BEVERAGES – 1.70%
Anheuser-Busch Companies Inc.	4,236		206,590
Brown-Forman Corp. Class B	324		21,527
Coca-Cola Co. (The)	12,009		625,789
Coca-Cola Enterprises Inc.	1,323		29,979
Coca-Cola FEMSA SAB de CV SP ADR	192		8,723
Coca-Cola Hellenic Bottling Co. SA ADR	651		29,158
Compania Cervecerias Unidas ADR	383		14,228
Constellation Brands Inc. Class A^a	1,506		33,027
Cott Corp.^a	351		4,321
Diageo PLC SP ADR	3,800		310,384
Embotelladora Andina SA Class A ADR	324		5,978
Embotelladora Andina SA Class B ADR	593		11,682
Molson Coors Brewing Co. Class B	438		38,956
Pepsi Bottling Group Inc.	918		30,716
PepsiAmericas Inc.	459		12,701
PepsiCo Inc.	9,388		616,041
Vina Concha y Toro SA SP ADR	220		10,670

			2,010,470

BIOTECHNOLOGY – 0.22%
Celera Group^a	864		10,385
Charles River Laboratories International Inc^a	459		23,492
Enzo Biochem Inc.^a	592		7,566
Genentech Inc.^a	2,689		200,008
Millipore Corp.^a	294		23,111

			264,562


Security	Shares	Value
BUILDING MATERIALS – 0.75%
American Standard Companies Inc.	972	$	52,537
Cemex SAB de CV SP ADR^a	4,150		134,211
Comfort Systems USA Inc.	516		6,677
CRH PLC SP ADR	2,933		131,604
Eagle Materials Inc.	353		15,437
Florida Rock Industries Inc.	374		23,753
Goodman Global Inc.^a	490		11,819
Hanson PLC SP ADR	945		104,394
Lafarge SA SP ADR	3,594		152,098
Lennox International Inc.	326		12,486
Martin Marietta Materials Inc.	270		36,990
Masco Corp.	2,647		72,025
NCI Building Systems Inc.^a	158		7,641
Owens Corning^a	517		15,732
Rinker Group Ltd. ADR^c	1,080		85,860
Simpson Manufacturing Co. Inc.^b	216		7,307
Texas Industries Inc.	192		15,132
Trex Co. Inc.^a,b	270		4,509

			890,212

CHEMICALS – 2.10%
Agrium Inc.	702		29,428
Air Products and Chemicals Inc.	1,188		102,608
Airgas Inc.	351		16,392
Albemarle Corp.	378		15,207
Arch Chemicals Inc.	135		4,776
Ashland Inc.	378		23,081
BASF AG SP ADR	2,940		380,583
Bayer AG ADR	4,393		310,893
Cabot Corp.	351		14,173
Celanese Corp. Class A	549		20,587
Chemtura Corp.	1,807		18,847
Cytec Industries Inc.	189		12,661
Dow Chemical Co. (The)	5,648		245,575
Du Pont (E.I.) de Nemours and Co.	5,308		248,043
Eastman Chemical Co.	432		29,730
Ecolab Inc.	1,026		43,205
Ferro Corp.	216		4,828
FMC Corp.	189		16,846
Fuller (H.B.) Co.	324		8,952
Georgia Gulf Corp.	564		9,131


Security	Shares	Value
Grace (W.R.) & Co.^a	510	$	10,531
Hercules Inc.^a	567		11,771
Huntsman Corp.	621		15,811
International Flavors & Fragrances Inc.	567		28,412
Lubrizol Corp.	389		24,375
Lyondell Chemical Co.	1,322		59,358
Minerals Technologies Inc.	108		6,984
Mosaic Co. (The)^a	788		29,597
Nova Chemicals Corp.	486		18,546
Olin Corp.	378		7,889
OM Group Inc.^a	294		14,241
PolyOne Corp.^a	1,073		8,069
Potash Corp. of Saskatchewan	1,860		150,176
PPG Industries Inc.	945		72,075
Praxair Inc.	1,754		134,391
Rhodia SA SP ADR^a	714		32,930
Rohm & Haas Co.	810		45,781
RPM International Inc.	648		15,234
Sensient Technologies Corp.	668		16,967
Sherwin-Williams Co. (The)	674		46,971
Sinopec Shanghai Petrochemical Co. Ltd. SP ADR	135		8,404
Sociedad Quimica y Minera de Chile SA SP ADR	87		14,230
Spartech Corp.	162		3,572
Syngenta AG ADR	2,835		106,851
Terra Industries Inc.^a	197		4,832
Tronox Inc. Class B	452		5,560
Valspar Corp. (The)	828		22,845
Westlake Chemical Corp.	191		4,771

			2,476,720

COAL – 0.16%
Alpha Natural Resources Inc.^a	625		11,156
Arch Coal Inc.	1,008		30,129
CONSOL Energy Inc.	1,026		42,733
Foundation Coal Holdings Inc.	265		9,235
Massey Energy Co.	694		14,817
Peabody Energy Corp.	1,597		67,489
Yanzhou Coal Mining Co. Ltd. SP ADR	163		14,520

			190,079


Security	Shares	Value
COMMERCIAL SERVICES – 0.99%
Aaron Rents Inc.	216	$	4,994
ABM Industries Inc.	216		5,435
Accenture Ltd.	3,190		134,395
Advance America Cash Advance Centers Inc.	283		4,152
Alliance Data Systems Corp.^a	379		29,107
AMN Healthcare Services Inc.^a	233		5,003
Arbitron Inc.	276		13,745
Avis Budget Group Inc.^a	366		9,395
BearingPoint Inc.^a	2,116		13,796
Block (H & R) Inc.	1,993		39,760
Bowne & Co. Inc.	348		6,034
Chemed Corp.	294		18,604
ChoicePoint Inc.^a	486		18,828
Consolidated Graphics Inc.^a	109		7,184
Convergys Corp.^a	783		14,916
Corrections Corp. of America^a	812		23,426
DeVry Inc.	568		18,403
Dollar Thrifty Automotive Group Inc.^a	135		4,984
Donnelley (R.R.) & Sons Co.	1,188		50,205
Equifax Inc.	783		31,680
FTI Consulting Inc.^a	243		9,970
Gartner Inc.^a	459		9,607
Geo Group Inc. (The)^a	460		12,724
Global Cash Access Inc.^a	313		4,276
HealthSpring Inc.^a	547		9,354
Hertz Global Holdings Inc.^a	812		18,181
Hewitt Associates Inc. Class A^a	522		15,618
Interactive Data Corp.	189		5,169
Iron Mountain Inc.^a	972		26,040
ITT Educational Services Inc.^a	243		25,675
Jackson Hewitt Tax Service Inc.	168		4,570
Korn/Ferry International^a	189		4,466
Labor Ready Inc.^a	622		14,654
Landauer Inc.	54		2,570
Live Nation Inc.^a	375		7,447
Manpower Inc.	486		38,418
MAXIMUS Inc.	192		8,024


Security	Shares	Value
McKesson Corp.	1,697	$	98,019
Midas Inc.^a	190		3,452
Moody’s Corp.	1,409		75,804
MPS Group Inc.^a	594		7,918
Navigant Consulting Inc.^a	243		3,827
New Oriental Education & Technology Group Inc. ADR^a	89		4,608
PHH Corp.^a	296		8,625
Pre-Paid Legal Services Inc.^a,b	82		4,321
Quanta Services Inc.^a	1,000		28,430
Quebecor World Inc.	838		9,687
Robert Half International Inc.	1,107		37,627
Rollins Inc.	215		5,117
SAIC Inc.^a	301		5,045
Service Corp. International	1,674		20,289
Sotheby’s Holdings Inc. Class A	413		17,656
Spherion Corp.^a	901		7,956
United Rentals Inc.^a	702		22,562
Viad Corp.	135		4,853
Volt Information Sciences Inc.^a	558		8,694
Watson Wyatt Worldwide Inc.	303		13,499
Weight Watchers International Inc.	243		11,790
Western Union Co.	4,690		93,565

			1,164,153

COMPUTERS – 2.16%
Affiliated Computer Services Inc. Class A^a	675		36,220
BISYS Group Inc. (The)^a	1,718		20,564
Ceridian Corp.^a	837		28,374
CGI Group Inc.^a	1,890		19,524
CIBER Inc.^a	588		4,463
Computer Sciences Corp.^a	1,026		57,128
Diebold Inc.	486		24,626
DST Systems Inc.^a	404		30,651
Electronic Data Systems Corp.	2,886		77,893
EMC Corp.^a	13,473		249,385
FactSet Research Systems Inc.	215		14,188
Gateway Inc.^a	3,195		4,537
Hewlett-Packard Co.	15,609		718,482
International Business Machines Corp.	8,543		945,283


Security	Shares	Value
NCR Corp.^a	1,080	$	56,398
Perot Systems Corp. Class A^a	405		6,164
Quantum Corp.^a	3,100		8,773
Seagate Technology	3,363		79,064
TDK Corp. SP ADR	729		61,980
Thomson Corp.	1,053		43,815
Tyler Technologies Inc.^a	435		5,233
Unisys Corp.^a	1,648		13,332
Western Digital Corp.^a	1,781		38,024

			2,544,101

COSMETICS & PERSONAL CARE – 1.21%
Avon Products Inc.	2,523		90,853
Colgate-Palmolive Co.	2,915		192,390
Estee Lauder Companies Inc. (The) Class A	753		33,900
Procter & Gamble Co.	18,014		1,114,346

			1,431,489

DISTRIBUTION & WHOLESALE – 0.20%
Building Materials Holding Corp.	637		8,848
Corporate Express NV SP ADR	1,128		15,510
Genuine Parts Co.	972		46,248
Grainger (W.W.) Inc.	459		40,098
Ingram Micro Inc. Class A^a	675		13,534
Owens & Minor Inc.	216		8,305
Watsco Inc.	207		10,331
WESCO International Inc.^a	322		17,243
Wolseley PLC ADR	3,240		71,636

			231,753

DIVERSIFIED FINANCIAL SERVICES – 5.88%
Affiliated Managers Group Inc.^a	189		21,357
American Express Co.	6,128		358,733
AmeriCredit Corp.^a	1,070		21,764
Ameriprise Financial Inc.	1,217		73,349
Bear Stearns Companies Inc. (The)	793		96,127
BlackRock Inc.	140		22,330
Capital One Financial Corp.	2,692		190,486
CIT Group Inc.	1,188		48,922
Citigroup Inc.	28,925		1,347,037
CME Group Inc.	258		142,545
Doral Financial Corp.^a,b	9,886		11,369
Eaton Vance Corp.	843		35,288


Security	Shares	Value
Edwards (A.G.) Inc.	459	$	37,115
Federal Home Loan Mortgage Corp.	3,917		224,327
Federal National Mortgage Association	5,536		331,274
Federated Investors Inc. Class B	540		19,445
Financial Federal Corp.	294		8,335
First Marblehead Corp. (The)	451		14,865
Franklin Resources Inc.	934		118,964
Friedman, Billings, Ramsey Group Inc. Class A	4,290		21,107
GAMCO Investors Inc. Class A	216		11,219
Goldman Sachs Group Inc. (The)	2,095		394,572
IntercontinentalExchange Inc.^a	357		53,953
International Securities Exchange Holdings Inc.	116		7,621
INVESCO PLC SP ADR	2,726		68,668
Investment Technology Group Inc.^a	506		20,220
Janus Capital Group Inc.	1,350		40,581
Jefferies Group Inc.	995		26,139
JPMorgan Chase & Co.	20,438		899,476
Lazard Ltd. Class A	434		16,071
Legg Mason Inc.	840		75,600
Lehman Brothers Holdings Inc.	3,224		199,888
Merrill Lynch & Co. Inc.	4,990		370,258
Morgan Stanley	5,508		351,796
National Financial Partners Corp.	273		12,656
Nomura Holdings Inc. ADR	11,497		218,098
Nuveen Investments Inc. Class A	406		24,823
NYMEX Holdings Inc.	220		27,390
Petrobras Energia Participaciones SA SP ADR^a	1,032		11,342
Raymond James Financial Inc.	486		14,906
Ritchie Bros. Auctioneers Inc.	212		13,822
Shinhan Financial Group Co. Ltd. ADR	1,089		147,897
SLM Corp.	2,429		119,434
Student Loan Corp. (The)	27		5,022
SWS Group Inc.	275		4,854
UBS AG	11,206		617,114
Waddell & Reed Financial Inc. Class A	773		19,487
Woori Finance Holdings Co. Ltd. ADR	296		22,825

			6,940,471


Security	Shares	Value
ELECTRIC – 3.73%
AES Corp. (The)^a	3,887	$	76,380
Allegheny Energy Inc.^a	973		50,820
ALLETE Inc.	324		14,204
Alliant Energy Corp.	700		25,865
Ameren Corp.	1,192		57,192
American Electric Power Co. Inc.	2,187		95,113
Aquila Inc.^a	2,856		10,796
Avista Corp.	430		8,523
Black Hills Corp.	215		8,019
CenterPoint Energy Inc.	1,512		24,918
Central Vermont Public Service Corp.	319		10,846
CH Energy Group Inc.	269		11,930
Cleco Corp.	431		10,236
CMS Energy Corp.	1,296		20,943
Consolidated Edison Inc.	1,372		59,929
Constellation Energy Group Inc.	999		83,716
Dominion Resources Inc.	1,893		159,428
DPL Inc.	890		23,656
DTE Energy Co.	945		43,829
Duke Energy Corp.	6,749		114,935
Dynegy Inc. Class A^a	3,316		29,546
E.ON AG SP ADR	11,693		611,895
Edison International	1,655		87,533
El Paso Electric Co.^a	403		9,378
Empire District Electric Co. (The)	562		12,190
Empresa Nacional de Electricidad SA SP ADR	912		39,991
Endesa SA SP ADR	4,032		217,728
Enel SpA SP ADR	4,782		246,034
Energy East Corp.	810		20,501
Enersis SA SP ADR	1,676		29,699
Entergy Corp.	1,185		118,453
Exelon Corp.	3,749		262,992
FirstEnergy Corp.	1,771		107,588
FPL Group Inc.	2,076		119,847
Great Plains Energy Inc.	594		16,489
Hawaiian Electric Industries Inc.	432		9,854
Huaneng Power International Inc. SP ADR	676		30,271
IDACORP Inc.	326		10,093


Security	Shares	Value
Integrys Energy Group Inc.	442	$	21,875
Korea Electric Power Corp. SP ADR	3,047		72,305
MDU Resources Group Inc.	891		24,289
Mirant Corp.^a	1,261		47,704
National Grid PLC SP ADR	2,998		213,098
Northeast Utilities	1,052		28,762
NRG Energy Inc.^a	1,259		48,534
NSTAR	679		21,355
OGE Energy Corp.	596		19,757
Pepco Holdings Inc.	1,162		31,455
PG&E Corp.	2,187		93,625
Pinnacle West Capital Corp.	513		19,227
PNM Resources Inc.	324		8,369
PPL Corp.	2,160		101,822
Progress Energy Inc.	1,377		60,120
Public Service Enterprise Group Inc.	1,403		120,868
Puget Energy Inc.	653		15,117
Reliant Energy Inc.^a	2,135		54,827
SCANA Corp.	648		24,222
Sierra Pacific Resources Corp.^a	1,247		19,815
Southern Co. (The)	3,923		131,970
TECO Energy Inc.	1,053		16,995
TransAlta Corp.	1,536		43,976
TXU Corp.	2,567		167,497
UIL Holdings Corp.	374		11,063
UniSource Energy Corp.	299		9,099
Westar Energy Inc.	543		12,500
Wisconsin Energy Corp.	703		30,180
Xcel Energy Inc.	2,214		44,944

			4,406,730

ELECTRICAL COMPONENTS & EQUIPMENT – 0.42%
AMETEK Inc.	567		22,124
Belden Inc.	270		14,791
C&D Technologies Inc.^a	901		4,343
Emerson Electric Co.	4,590		216,051
Energizer Holdings Inc.^a	459		46,313
General Cable Corp.^a	428		34,026
GrafTech International Ltd.^a	330		5,112
Hitachi Ltd. SP ADR	1,862		132,388
Hubbell Inc. Class B	270		15,565

			490,713


Security	Shares	Value
ELECTRONICS – 1.03%
Advantest Corp. ADR	1,187	$	46,151
Agilent Technologies Inc.^a	2,565		97,855
Amphenol Corp. Class A	864		29,601
Applied Biosystems Group	1,161		36,246
Arrow Electronics Inc.^a	621		23,735
AU Optronics Corp. SP ADR	3,672		62,130
Avnet Inc.^a	819		31,024
AVX Corp.	429		6,860
Benchmark Electronics Inc.^a	616		13,675
Brady Corp. Class A	404		14,136
Celestica Inc.^a	3,799		22,452
Checkpoint Systems Inc.^a	191		4,406
CTS Corp.	323		4,115
Epcos AG SP ADR	564		11,500
KEMET Corp.^a	1,460		10,278
Koninklijke Philips Electronics NV NYS	6,688		270,195
Kyocera Corp. SP ADR	971		93,313
LG.Philips LCD Co. Ltd. ADR^a	1,171		27,062
Mettler-Toledo International Inc.^a	243		23,124
Park Electrochemical Corp.	187		5,545
PerkinElmer Inc.	648		18,034
Solectron Corp.^a	8,903		33,475
Technitrol Inc.	304		7,904
Tektronix Inc.	459		15,078
Thermo Fisher Scientific Inc.^a	2,329		121,597
Thomas & Betts Corp.^a	324		20,023
Tyco Electronics Ltd.^a	2,802		100,368
Vishay Intertechnology Inc.^a	1,380		21,404
Waters Corp.^a	675		39,325
Watts Water Technologies Inc. Class A	303		10,578

			1,221,189

ENERGY - ALTERNATE SOURCES – 0.07%
Aventine Renewable
Energy Holdings Inc.^a	1,207		19,481
Headwaters Inc.^a	997		16,082
LDK Solar Co. Ltd. SP ADR^a	129		5,779
Suntech Power Holdings Co. Ltd. ADR^a	626		25,247
VeraSun Energy Corp.^a	1,115		15,833

			82,422


Security	Shares	Value
ENGINEERING & CONSTRUCTION – 0.56%
ABB Ltd. SP ADR	12,868	$	309,733
AECOM Technology Corp.^a	414		10,743
Chicago Bridge & Iron Co. NV NYS	540		21,924
Dycom Industries Inc.^a	400		11,180
EMCOR Group Inc.^a	430		15,437
Empresas ICA Sociedad Controladora SA de CV SP ADR^a	265		20,061
Fluor Corp.	486		56,138
Granite Construction Inc.	247		16,053
Grupo Aeroportuario del Sureste SA de CV ADR^b	386		20,292
Jacobs Engineering Group Inc.^a	698		43,018
KBR Inc.^a	1,102		35,363
McDermott International Inc.^a	652		54,077
Shaw Group Inc. (The)^a	430		22,885
URS Corp.^a	374		18,423

			655,327

ENTERTAINMENT – 0.10%
DreamWorks Animation
SKG Inc. Class A^a	243		7,533
International Game Technology Inc.	1,944		68,662
Pinnacle Entertainment Inc.^a	296		7,847
Regal Entertainment Group Class A	216		4,620
Speedway Motorsports Inc.	164		6,063
Vail Resorts Inc.^a	215		11,513
Warner Music Group Corp.	1,280		15,859

			122,097

ENVIRONMENTAL CONTROL – 0.19%
Allied Waste Industries Inc.^a	1,896		24,402
Mine Safety Appliances Co.	188		8,582
Nalco Holding Co.	686		15,805
Republic Services Inc.	1,010		32,270
Waste Connections Inc.^a	543		16,833
Waste Management Inc.	3,187		121,202

			219,094

FOOD – 1.88%
Cadbury Schweppes PLC SP ADR	2,944		146,405
Campbell Soup Co.	1,431		52,704
ConAgra Foods Inc.	2,997		75,974
Corn Products International Inc.	378		16,866


Security	Shares	Value
Del Monte Foods Co.	1,107	$	12,841
Distribucion y Servicio D&S SA ADR	412		13,122
Flowers Foods Inc.	564		11,562
General Mills Inc.	1,944		108,125
Gruma SAB de CV SP ADR	189		2,835
Heinz (H.J.) Co.	1,864		81,569
Hershey Co. (The)	972		44,809
Hormel Foods Corp.	405		13,940
Kellogg Co.	1,114		57,716
Koninklijke Ahold NV SP ADR^a	9,053		114,611
Kraft Foods Inc.	9,304		304,706
Kroger Co.	3,866		100,361
McCormick & Co. Inc. NVS	675		23,058
Pilgrim’s Pride Corp.	265		8,925
Ralcorp Holdings Inc.^a	162		8,418
Ruddick Corp.	216		6,005
Safeway Inc.	2,457		78,305
Sara Lee Corp.	4,401		69,756
Smithfield Foods Inc.^a	675		20,966
Smucker (J.M.) Co. (The)	402		22,436
SUPERVALU Inc.	1,080		45,004
Sysco Corp.	3,563		113,588
Tootsie Roll Industries Inc.	139		3,479
TreeHouse Foods Inc.^a	378		8,471
Tyson Foods Inc. Class A	1,296		27,605
Unilever NV NYS	9,875		298,818
Unilever PLC SP ADR	7,441		232,085
Weis Markets Inc.	54		2,122
Wimm-Bill-Dann Foods OJSC ADR	190		17,860
Wrigley (William Jr.) Co.	1,303		75,157

			2,220,204

FOREST PRODUCTS & PAPER – 0.49%
Abitibi-Consolidated Inc.^a	5,959		14,123
Bowater Inc.^b	701		13,754
Buckeye Technologies Inc.^a	189		2,897
Deltic Timber Corp.	189		9,826
Domtar Corp.^a	2,367		22,510
Glatfelter Co.	521		6,997
International Paper Co.	2,672		99,051
MeadWestvaco Corp.	1,350		43,929
Neenah Paper Inc.	81		3,137


Security	Shares	Value
Plum Creek Timber Co. Inc.	1,026	$	39,870
Pope & Talbot Inc.^a	1,347		3,543
Potlatch Corp.	373		16,296
Rayonier Inc.	405		17,148
Rock-Tenn Co. Class A	135		4,147
Sappi Ltd. SP ADR	1,161		18,878
Schweitzer-Mauduit International Inc.	81		1,849
Stora Enso OYJ SP ADR	3,564		61,051
Temple-Inland Inc.	594		34,529
UPM-Kymmene OYJ SP ADR	2,916		64,677
Weyerhaeuser Co.	1,328		94,607

			572,819

GAS – 0.25%
AGL Resources Inc.	324		12,215
Atmos Energy Corp.	407		11,424
Energen Corp.	378		20,000
KeySpan Corp.	891		37,021
Laclede Group Inc. (The)	186		5,496
New Jersey Resources Corp.	350		16,450
Nicor Inc.	162		6,384
NiSource Inc.	1,458		27,804
Northwest Natural Gas Co.	405		16,876
Piedmont Natural Gas Co.	378		8,766
Sempra Energy	1,189		62,684
South Jersey Industries Inc.	430		14,091
Southern Union Co.	596		18,404
Southwest Gas Corp.	324		10,070
UGI Corp.	540		13,937
Vectren Corp.	432		10,787
WGL Holdings Inc.	270		8,084

			300,493

HAND & MACHINE TOOLS – 0.09%
Baldor Electric Co.	162		7,394
Black & Decker Corp.	432		37,398
Kennametal Inc.	189		14,489
Regal-Beloit Corp.	104		5,275
Snap-On Inc.	297		15,542
Stanley Works (The)	459		25,396

			105,494

HEALTH CARE - PRODUCTS – 2.10%
Alcon Inc.	454		61,971
Bard (C.R.) Inc.	594		46,611


Security	Shares	Value
Bausch & Lomb Inc.	292	$	18,668
Baxter International Inc.	3,513		184,784
Beckman Coulter Inc.	351		24,858
Becton, Dickinson and Co.	1,296		98,963
Boston Scientific Corp.^a	8,453		111,157
Cantel Medical Corp.^a	104		1,506
Cooper Companies Inc.	293		14,688
DJO Inc.^a	108		5,128
Edwards Lifesciences Corp.^a	324		14,891
Fresenius Medical Care AG & Co. KGaA ADR	1,031		48,560
Haemonetics Corp.^a	135		6,672
Hillenbrand Industries Inc.	344		21,686
Invacare Corp.	303		6,227
Johnson & Johnson	16,439		994,560
Kinetic Concepts Inc.^a	357		21,948
Luxottica Group SpA SP ADR	1,021		36,797
Medtronic Inc.	6,646		336,753
Mindray Medical International Ltd. ADR	172		5,332
Oakley Inc.	135		3,807
ResMed Inc.^a	500		21,490
Smith & Nephew PLC SP ADR	1,144		68,377
St. Jude Medical Inc.^a	2,002		86,366
Steris Corp.	378		10,338
Stryker Corp.	1,565		97,703
Symmetry Medical Inc.^a	313		4,673
West Pharmaceutical Services Inc.	292		13,514
Zimmer Holdings Inc.^a	1,413		109,875

			2,477,903

HEALTH CARE - SERVICES – 1.11%
Aetna Inc.	3,270		157,189
Assisted Living Concepts Inc.^a	404		3,636
Centene Corp.^a	318		6,872
Community Health Systems Inc.^a	757		29,447
Covance Inc.^a	448		31,615
Coventry Health Care Inc.^a	990		55,252
DaVita Inc.^a	651		34,464
Health Management Associates Inc. Class A	1,350		10,881
Health Net Inc.^a	621		30,764


Security	Shares	Value
HealthSouth Corp.^a	291	$	4,598
Humana Inc.^a	891		57,104
Laboratory Corp. of America Holdings^a	676		49,923
Manor Care Inc.	486		30,788
MDS Inc.	1,131		21,591
Molina Healthcare Inc.^a	81		2,543
Pediatrix Medical Group Inc.^a	375		20,235
Quest Diagnostics Inc.	864		47,926
Sierra Health Services Inc.^a	374		15,199
Sunrise Senior Living Inc.^a	368		14,632
Tenet Healthcare Corp.^a	3,143		16,281
UnitedHealth Group Inc.	7,664		371,168
Universal Health Services Inc. Class B	371		19,455
WellPoint Inc.^a	3,645		273,812

			1,305,375

HOLDING COMPANIES - DIVERSIFIED – 0.62%
Berkshire Hathaway Inc. Class B^a	184		663,136
Leucadia National Corp.	864		32,486
Tomkins PLC SP ADR	1,343		24,510
Walter Industries Inc.	502		12,550

			732,682

HOME BUILDERS – 0.08%
Champion Enterprises Inc.^a	1,696		19,877
Fleetwood Enterprises Inc.^a	1,347		12,743
Lennar Corp. Class B	315		9,233
Levitt Corp. Class A	952		7,768
M/I Homes Inc.	198		4,861
Monaco Coach Corp.	485		6,766
Ryland Group Inc.	492		16,359
Thor Industries Inc.	329		13,496
Winnebago Industries Inc.^b	321		8,661

			99,764

HOME FURNISHINGS – 0.58%
Furniture Brands International Inc.	1,451		15,990
Harman International Industries Inc.	378		43,848
Matsushita Electric Industrial Co. Ltd. SP ADR	13,130		239,623
Sony Corp. SP ADR	5,838		307,896


Security	Shares	Value
Thomson SA SP ADR	1,845	$	30,221
Whirlpool Corp.	477		48,706

			686,284

HOUSEHOLD PRODUCTS & WARES – 0.36%
ACCO Brands Corp.^a	486		10,050
American Greetings Corp. Class A	351		8,680
Avery Dennison Corp.	540		33,124
Blyth Inc.	189		4,218
Church & Dwight Co. Inc.	511		25,070
Clorox Co. (The)	892		53,930
Ennis Inc.	270		5,449
Fortune Brands Inc.	810		65,853
Jarden Corp.^a	431		15,572
Kimberly-Clark Corp.	2,589		174,162
Playtex Products Inc.^a	216		3,869
Scotts Miracle-Gro Co. (The) Class A	216		8,854
Tupperware Brands Corp.	434		11,288

			420,119

HOUSEWARES – 0.05%
Newell Rubbermaid Inc.	1,539		40,707
Toro Co. (The)	270		15,179

			55,886

INSURANCE – 5.47%
ACE Ltd.	1,696		97,893
Aegon NV ADR	9,250		167,240
AFLAC Inc.	2,781		144,946
Alleghany Corp.^a	43		18,060
Allianz SE ADR	26,225		555,970
Allstate Corp. (The)	3,673		195,220
Ambac Financial Group Inc.	680		45,662
American Financial Group Inc.	484		13,596
American International Group Inc.	13,258		850,898
Aon Corp.	1,539		61,622
Aspen Insurance Holdings Ltd.	547		13,374
Assurant Inc.	571		28,961
Assured Guaranty Ltd.	405		9,858
AXA SP ADR	10,359		405,658
Axis Capital Holdings Ltd.	675		24,874
Berkley (W.R.) Corp.	1,081		31,803
China Life Insurance Co. Ltd. ADR	2,899		187,507
Chubb Corp.	2,366		119,270


Security	Shares	Value
CIGNA Corp.	2,002	$	103,383
CNA Financial Corp.	291		12,082
Commerce Group Inc.	512		14,710
Conseco Inc.^a	1,286		23,392
Converium Holding AG ADR	536		4,315
Delphi Financial Group Inc. Class A	383		15,385
Endurance Specialty Holdings Ltd.	325		12,155
Everest Re Group Ltd.	297		29,180
Fairfax Financial Holdings Ltd.	125		24,188
FBL Financial Group Inc. Class A	307		10,803
Fidelity National Financial Inc.	1,693		35,367
First American Corp.	491		22,728
Gallagher (ArthurJ.) & Co.	513		14,149
Genworth Financial Inc. Class A	2,344		71,539
Hanover Insurance Group Inc. (The)	433		19,004
Hartford Financial Services Group Inc. (The)	1,704		156,546
HCC Insurance Holdings Inc.	571		16,719
Hilb, Rogal & Hobbs Co.	279		12,081
Horace Mann Educators Corp.	243		4,333
ING Groep NV SP ADR	12,305		519,025
Kingsway Financial Services Inc.	324		5,919
KMG America Corp.^a	1,038		4,858
LandAmerica Financial Group Inc.	188		14,399
Lincoln National Corp.	1,649		99,468
Loews Corp.	2,589		122,719
Manulife Financial Corp.	8,993		328,604
Markel Corp.^a	65		30,258
Marsh & McLennan Companies Inc.	3,167		87,251
MBIA Inc.	998		55,988
Mercury General Corp.	243		12,583
MetLife Inc.	2,535		152,658
Montpelier Re Holdings Ltd.	1,084		17,181
Nationwide Financial Services Inc.	324		18,439
Old Republic International Corp.	1,185		21,757
PartnerRe Ltd.	297		21,096
Phoenix Companies Inc.	513		7,074
Platinum Underwriters Holdings Ltd.	520		17,264
PMI Group Inc. (The)	863		29,402
Primus Guaranty Ltd.^a	954		9,063
Principal Financial Group Inc.	1,674		94,397
ProAssurance Corp.^a	214		10,567


Security	Shares	Value
Protective Life Corp.	351	$	15,100
Prudential Financial Inc.	2,754		244,087
Prudential PLC ADR	6,999		202,621
Reinsurance Group of America Inc.	236		12,581
RenaissanceRe Holdings Ltd.	412		23,690
RLI Corp.	108		6,264
SAFECO Corp.	576		33,679
Scottish Re Group Ltd.^a	2,689		11,025
Security Capital Assurance Ltd.	172		3,987
StanCorp Financial Group Inc.	324		15,215
Stewart Information Services Corp.	224		8,172
Sun Life Financial Services of Canada Inc.	3,267		155,640
Torchmark Corp.	565		34,770
Transatlantic Holdings Inc.	217		15,874
Travelers Companies Inc. (The)	3,940		200,073
21st Century Insurance Group	135		2,957
Unitrin Inc.	243		10,298
Unum Group	2,097		50,957
White Mountains Insurance Group Ltd.	53		29,124
Willis Group Holdings Ltd.	810		32,878
XL Capital Ltd. Class A	1,030		80,196
Zenith National Insurance Corp.	278		11,220

			6,454,849

INTERNET – 0.03%
McAfee Inc.^a	891		31,951

			31,951

IRON & STEEL – 0.78%
AK Steel Holding Corp.^a	1,188		47,484
Allegheny Technologies Inc.	541		56,767
Arcelor Mittal Class A ADR	4,409		269,037
Carpenter Technology Corp.	162		19,228
Cleveland-Cliffs Inc.	322		22,305
Companhia Siderurgica Nacional SA SP ADR	864		49,818
Nucor Corp.	1,618		81,224
POSCO ADR	1,881		267,948
Reliance Steel & Aluminum Co.	427		22,435
Ryerson Inc.	326		10,461
United States Steel Corp.	701		68,901

			915,608


Security	Shares	Value
LEISURE TIME – 0.21%
Carnival Corp.	2,319	$	102,755
Harley-Davidson Inc.	1,576		90,336
K2 Inc.^a	560		8,182
Polaris Industries Inc.^b	243		11,994
Royal Caribbean Cruises Ltd.	702		27,048
WMS Industries Inc.^a	443		11,558

			251,873

LODGING – 0.51%
Boyd Gaming Corp.	295		13,010
Choice Hotels International Inc.	216		7,815
Gaylord Entertainment Co.^a	297		14,844
Harrah’s Entertainment Inc.	971		82,234
Hilton Hotels Corp.	2,106		93,106
InterContinental Hotels Group PLC SP ADR	1,964		44,917
Las Vegas Sands Corp.^a	705		61,511
Marcus Corp.	108		2,125
Marriott International Inc. Class A	2,052		85,261
MGM MIRAGE^a	702		51,323
Orient-Express Hotels Ltd.	269		12,495
Starwood Hotels & Resorts Worldwide Inc.	1,162		73,160
Station Casinos Inc.	297		25,699
Wyndham Worldwide Corp.^a	1,155		38,866

			606,366

MACHINERY – 0.78%
AGCO Corp.^a	432		16,602
Albany International Corp. Class A	348		13,043
Applied Industrial Technologies Inc.	243		6,899
Briggs & Stratton Corp.	348		9,869
Cascade Corp.	108		7,321
Caterpillar Inc.	3,789		298,573
CNH Global NV	108		5,716
Cummins Inc.	517		61,368
Deere & Co.	1,377		165,818
Flowserve Corp.	297		21,464
Gardner Denver Inc.^a	326		13,558
Graco Inc.	405		16,621
IDEX Corp.	362		13,108
Kadant Inc.^a	81		2,183


Security	Shares	Value
Kubota Corp. SP ADR	1,377	$	57,448
Manitowoc Co. Inc. (The)	375		29,126
Metso OYJ SP ADR	676		43,115
NACCO Industries Inc.	27		3,551
Pfeiffer Vacuum Technology AG SP ADR	54		5,313
Rockwell Automation Inc.	918		64,251
Terex Corp.^a	540		46,575
Wabtec Corp.	380		15,519

			917,041

MANUFACTURING – 4.17%
Acuity Brands Inc.	243		14,361
Ameron International Corp.	134		13,109
AptarGroup Inc.	378		13,759
Barnes Group Inc.	216		6,739
Blount International Inc.^a	550		6,254
Brink’s Co. (The)	297		18,162
Carlisle Companies Inc.	324		14,671
CLARCOR Inc.	270		9,393
Cooper Industries Ltd.	1,024		54,190
Covidien Ltd.^a	2,802		114,742
Crane Co.	324		14,859
Danaher Corp.	1,376		102,760
Donaldson Co. Inc.	432		15,720
Dover Corp.	1,226		62,526
Eastman Kodak Co.	1,778		44,895
Eaton Corp.	837		81,340
EnPro Industries Inc.^a	108		4,253
Federal Signal Corp.	405		5,447
General Electric Co.	59,025		2,287,809
Harsco Corp.	432		22,749
Hexcel Corp.^a	858		18,653
Honeywell International Inc.	4,373		251,491
Illinois Tool Works Inc.	2,750		151,388
Ingersoll-Rand Co. Class A	1,890		95,105
ITT Industries Inc.	1,026		64,515
Leggett & Platt Inc.	1,526		31,634
Myers Industries Inc.	162		3,465
Pall Corp.	702		29,147
Parker Hannifin Corp.	675		66,609
Pentair Inc.	540		19,548
Roper Industries Inc.	594		35,628


Security	Shares	Value
Siemens AG SP ADR	4,809	$	608,964
Smith (A.O.) Corp.	108		5,243
SPX Corp.	486		45,621
Teleflex Inc.	189		14,445
Textron Inc.	648		73,153
3M Co.	3,806		338,430
Tredegar Corp.	135		2,479
Trinity Industries Inc.	549		20,988
Tyco International Ltd.	2,802		132,507

			4,916,751

MEDIA – 2.19%
Belo Corp.	540		9,666
British Sky Broadcasting Group PLC SP ADR	1,755		94,437
Cablevision Systems Corp.^a	1,424		50,680
CBS Corp. Class B	3,914		124,152
Citadel Broadcasting Corp.	1,709		8,579
Clear Channel Communications Inc.	2,649		97,748
Corus Entertainment Inc. Class B	216		9,893
DIRECTV Group Inc. (The)^a	5,076		113,753
Dow Jones & Co. Inc.	306		17,558
Entravision Communications Corp.^a	568		5,316
Grupo Televisa SA SP ADR	2,568		64,842
Hearst-Argyle Television Inc.	162		3,402
Idearc Inc.	808		28,046
McClatchy Co. (The) Class A	1,081		26,398
McGraw-Hill Companies Inc. (The)	2,080		125,840
Media General Inc. Class A	193		5,443
Meredith Corp.	216		12,202
News Corp. Class A	10,957		231,412
News Corp. Class B	3,564		80,760
Pearson PLC SP ADR	4,455		71,235
PRIMEDIA Inc.^a	4,539		10,712
Reed Elsevier NV SP ADR	1,836		67,473
Reed Elsevier PLC SP ADR	1,782		87,977
Rogers Communications Inc. Class B	2,698		122,192
Scripps (E.W.) Co. Class A	432		17,699
Shaw Communications Inc. Class B	1,107		52,616
Sun-Times Media Group Inc. Class A	1,009		4,228
Time Warner Cable Inc. Class A^a	516		19,722
Time Warner Inc.	22,162		426,840


Security	Shares	Value
Tribune Co.	1,161	$	32,462
Viacom Inc. Class B^a	3,694		141,480
Walt Disney Co. (The)	10,933		360,789
Washington Post Co. (The) Class B	52		41,119
Wiley (John) & Sons Inc. Class A	330		13,956

			2,580,627

METAL FABRICATE & HARDWARE – 0.19%
CIRCOR International Inc.	81		3,230
Commercial Metals Co.	701		21,619
Kaydon Corp.	405		21,550
Mueller Industries Inc.	189		6,970
Mueller Water Products Inc. Class A^b	307		4,310
Mueller Water Products Inc. Class B	840		11,088
Precision Castparts Corp.	767		105,125
Quanex Corp.	275		12,392
Timken Co. (The)	378		12,625
Valmont Industries Inc.	160		12,094
Worthington Industries Inc.	378		7,825

			218,828

MINING – 2.75%
Agnico-Eagle Mines Ltd.	1,076		45,773
Alcan Inc.	2,129		207,365
Alcoa Inc.	4,855		185,461
Alumina Ltd. SP ADR	1,620		40,370
Aluminum Corp. of China Ltd. ADR	640		32,230
AMCOL International Corp.	135		3,865
Barrick Gold Corp.	6,180		203,322
BHP Billiton Ltd. SP ADR	9,963		635,440
BHP Billiton PLC ADR	6,885		408,281
Cameco Corp.	1,944		79,276
Coeur d’Alene Mines Corp.^a,b	4,489		17,552
Companhia Vale do Rio Doce ADR	3,402		166,732
Compania de Minas Buenaventura SA ADR	675		26,939
Compass Minerals International Inc.	240		7,882
Freeport-McMoRan Copper& Gold Inc.	2,163		203,279
Goldcorp Inc.	5,284		134,266
Harmony Gold Mining Co. Ltd. SP ADR^a	3,132		43,347
Hecla Mining Co.^a	2,183		17,137
IAMGOLD Corp.	4,204		34,851
Kinross Gold Corp.^a	4,109		53,335


Security	Shares	Value
Meridian Gold Inc.^a	1,344	$	37,941
Rio Tinto PLC SP ADR	1,434		414,598
RTI International Metals Inc.^a	156		12,361
Southern Copper Corp.^b	430		48,465
Stillwater Mining Co.^a	972		8,845
Teck Cominco Ltd. Class B	1,918		85,159
Titanium Metals Corp.^a	717		23,962
USEC Inc.^a	921		15,464
Vulcan Materials Co.	536		51,306

			3,244,804

OFFICE & BUSINESS EQUIPMENT – 0.44%
Canon Inc. SP ADR	6,888		365,615
IKON Office Solutions Inc.	810		11,227
Pitney Bowes Inc.	1,296		59,746
Xerox Corp.^a	5,021		87,667

			524,255

OFFICE FURNISHINGS – 0.00%
Steelcase Inc. Class A	243		4,231

			4,231

OIL & GAS – 12.13%
Anadarko Petroleum Corp.	2,687		135,237
Apache Corp.	1,782		144,057
Atwood Oceanics Inc.^a	430		29,498
Berry Petroleum Co. Class A	358		13,321
BG Group PLC SP ADR	3,993		324,032
BP PLC SP ADR	18,527		1,285,774
Cabot Oil & Gas Corp.	592		20,246
Canadian Natural Resources Ltd.	3,024		206,872
Chesapeake Energy Corp.	2,379		80,981
Chevron Corp.	12,501		1,065,835
China Petroleum & Chemical Corp. ADR	975		102,346
Cimarex Energy Co.	744		28,160
CNOOC Ltd. ADR	854		101,284
Comstock Resources Inc.^a	189		5,077
ConocoPhillips	8,608		695,871
Denbury Resources Inc.^a	594		23,760
Devon Energy Corp.	2,537		189,286
Diamond Offshore Drilling Inc.	351		36,216
EnCana Corp.	4,715		287,521
Encore Acquisition Co.^a	637		16,479


Security	Shares	Value
ENI – Ente Nazionale Idrocarburi SpA SP ADR	6,973	$	486,436
ENSCO International Inc.	837		51,116
EOG Resources Inc.	1,296		90,850
Exxon Mobil Corp.	32,376		2,756,169
Forest Oil Corp.^a	460		18,616
Frontier Oil Corp.	650		25,175
GlobalSantaFe Corp.	1,372		98,386
Helmerich & Payne Inc.	700		22,659
Hess Corp.	1,555		95,166
Marathon Oil Corp.	3,942		217,598
Mariner Energy Inc.^a	485		10,248
Murphy Oil Corp.	972		60,303
Nabors Industries Ltd.^a	1,896		55,439
Newfield Exploration Co.^a	854		41,035
Nexen Inc.	2,924		90,995
Noble Corp.	755		77,357
Noble Energy Inc.	893		54,598
Norsk Hydro ASA SP ADR	4,180		161,264
Occidental Petroleum Corp.	4,582		259,891
Parker Drilling Co.^a	1,346		12,679
Penn Virginia Corp.	396		15,325
Penn West Energy Trust	642		19,960
Petro-Canada	2,864		156,374
PetroChina Co. Ltd. ADR	1,124		165,520
Petrohawk Energy Corp.^a	661		9,908
Petroleo Brasileiro SA ADR	3,228		209,497
Pioneer Natural Resources Co.	863		39,267
Plains Exploration & Production Co.^a	459		19,833
Pogo Producing Co.	324		17,256
Pride International Inc.^a	835		29,267
Quicksilver Resources Inc.^a	383		16,132
Range Resources Corp.	908		33,723
Repsol YPF SA SP ADR	5,211		196,090
Rowan Companies Inc.	719		30,335
Royal Dutch Shell PLC Class A ADR	10,555		818,962
Royal Dutch Shell PLC Class B ADR	7,972		632,020
Sasol Ltd. SP ADR	2,801		105,346
Southwestern Energy Co.^a	941		38,233
St. Mary Land & Exploration Co.	324		10,786
Statoil ASA SP ADR	3,623		107,241


Security	Shares	Value
Stone Energy Corp.^a	301	$	9,783
Suncor Energy Inc.	2,564		231,965
Sunoco Inc.	864		57,646
Swift Energy Co.^a	162		6,924
Talisman Energy Inc.	6,318		115,683
Tesoro Corp.	806		40,139
Total SA SP ADR	12,936		1,016,899
Transocean Inc.^a	1,808		194,270
Unit Corp.^a	216		11,893
VAALCO Energy Inc.^a	925		4,403
Valero Energy Corp.	3,397		227,633
W&T Offshore Inc.	589		13,794
Whiting Petroleum Corp.^a	341		14,005
XTO Energy Inc.	2,220		121,057
Yacimientos Petroliferos Fiscales SA SP ADR	2,365		103,421

			14,318,423

OIL & GAS SERVICES – 1.52%
Baker Hughes Inc.	1,888		149,246
Cameron International Corp.^a	594		46,332
Compagnie Generale de Geophysique-Veritas SP ADR^a	775		39,099
Complete Production Services Inc.^a	242		5,612
Core Laboratories NV^a	162		17,436
Dril-Quip Inc.^a	378		18,140
FMC Technologies Inc.^a	378		34,595
Grant Prideco Inc.^a	752		42,187
Halliburton Co.	5,457		196,561
Hanover Compressor Co.^a	588		14,012
Helix Energy Solutions Group Inc.^a	520		20,254
Input/Output Inc.^a	1,268		18,069
National Oilwell Varco Inc.^a	972		116,747
Newpark Resources Inc.^a	1,590		10,065
Oceaneering International Inc.^a	270		15,163
Oil States International Inc.^a	395		17,277
Schlumberger Ltd.	6,630		627,994
SEACOR Holdings Inc.^a	108		9,420
Smith International Inc.	1,134		69,639
Superior Energy Services Inc.^a	457		18,426
Technip SA SP ADR	652		53,138
Tenaris SA ADR	1,485		71,532
Tetra Technologies Inc.^a	426		11,847


Security	Shares	Value
Tidewater Inc.	297	$	20,321
Universal Compression Holdings Inc.^a	163		11,906
Weatherford International Ltd.^a	2,051		113,482
W-H Energy Services Inc.^a	269		17,238
Willbros Group Inc.^a	357		11,253

			1,796,991

PACKAGING & CONTAINERS – 0.17%
Ball Corp.	567		29,070
Bemis Co. Inc.	594		17,505
Crown Holdings Inc.^a	918		22,546
Greif Inc. Class A	108		5,940
Intertape Polymer Group Inc.^a	1,238		4,147
Owens-Illinois Inc.^a	1,109		44,338
Packaging Corp. of America	351		8,958
Pactiv Corp.^a	864		27,311
Sealed Air Corp.	972		26,487
Sonoco Products Co.	540		19,802

			206,104

PHARMACEUTICALS – 5.75%
Abbott Laboratories	8,704		441,206
Allergan Inc.	1,764		102,541
Alpharma Inc. Class A	593		14,700
AmerisourceBergen Corp.	1,242		58,511
AstraZeneca PLC SP ADR	8,809		456,570
Barr Pharmaceuticals Inc.^a	638		32,678
Bristol-Myers Squibb Co.	11,283		320,550
Cardinal Health Inc.	2,375		156,109
Dr. Reddy’s Laboratories Ltd. ADR	1,018		15,952
Elan Corp. PLC SP ADR^a	2,819		52,800
Forest Laboratories Inc.^a	2,026		81,445
GlaxoSmithKline PLC SP ADR	17,324		884,910
Herbalife Ltd.	121		4,959
Hospira Inc.^a	988		38,206
King Pharmaceuticals Inc.^a	1,186		20,174
K-V Pharmaceutical Co. Class A^a	404		11,045
Lilly (Eli) & Co.	5,492		297,062
Medco Health Solutions Inc.^a	1,680		136,534
Medicis Pharmaceutical Corp. Class A	372		10,613
Merck & Co. Inc.	12,392		615,263
NBTY Inc.^a	486		21,160
Novartis AG ADR	14,166		764,256
Novo-Nordisk A/S SP ADR	1,263		132,501


Security	Shares	Value
Pfizer Inc.	40,929	$	962,241
Sanofi-Aventis ADR	12,251		511,479
Schering-Plough Corp.	8,362		238,651
Valeant Pharmaceuticals International	595		9,336
Watson Pharmaceuticals Inc.^a	820		24,944
Wyeth	7,518		364,773

			6,781,169

PIPELINES – 0.48%
El Paso Corp.	3,915		65,185
Enbridge Inc.	1,808		64,003
Equitable Resources Inc.	702		33,071
National Fuel Gas Co.	432		18,727
ONEOK Inc.	540		27,405
Questar Corp.	1,022		52,623
Spectra Energy Corp.	3,374		85,936
TransCanada Corp.	2,700		97,740
Transportadora de Gas del Sur SA SP ADR^a	1,259		9,191
Williams Companies Inc. (The)	3,670		118,358

			572,239

REAL ESTATE – 0.19%
Brookfield Asset Management Inc. Class A	3,292		115,681
Brookfield Properties Corp.	1,169		26,419
CB Richard Ellis Group Inc. Class A^a	1,078		37,644
Forest City Enterprises Inc. Class A	324		17,629
Jones Lang LaSalle Inc.	194		21,297
MI Developments Inc. Class A	320		10,336

			229,006

REAL ESTATE INVESTMENT TRUSTS – 1.52%
Affordable Residential Communities Inc.^a	703		7,986
Alesco Financial Inc.	1,624		7,617
Alexandria Real Estate Equities Inc.	216		18,604
AMB Property Corp.	571		30,423
American Financial Realty Trust	2,424		21,258
Annaly Capital Management Inc.	2,058		29,738
Anworth Mortgage Asset Corp.^b	1,278		10,096
Apartment Investment & Management Co. Class A	621		26,237
Archstone-Smith Trust	1,143		65,620
Ashford Hospitality Trust Inc.	954		9,750


Security	Shares	Value
AvalonBay Communities Inc.	405	$	43,728
BioMed Realty Trust Inc.	985		21,512
Boston Properties Inc.	594		56,127
BRE Properties Inc. Class A	270		13,643
Camden Property Trust	373		20,500
Capital Lease Funding Inc.	1,177		10,911
CapitalSource Inc.	1,362		25,878
Crescent Real Estate Equities Co.	513		11,584
DCT Industrial Trust Inc.	463		4,537
Developers Diversified Realty Corp.	629		30,192
Douglas Emmett Inc.	325		7,495
Duke Realty Corp.	702		22,948
EastGroup Properties Inc.	270		11,135
Entertainment Properties Trust	281		12,519
Equity Inns Inc.	596		13,327
Equity Lifestyle Properties Inc.	323		14,651
Equity One Inc.	441		10,178
Equity Residential	1,726		68,712
Essex Property Trust Inc.	108		11,619
Extra Space Storage Inc.	380		5,335
Federal Realty Investment Trust	270		20,288
FelCor Lodging Trust Inc.	518		11,375
First Industrial Realty Trust Inc.	352		13,626
General Growth Properties Inc.	1,294		62,086
Getty Realty Corp.	267		6,728
Glimcher Realty Trust	459		9,758
GMH Communities Trust	755		6,342
Health Care Property Investors Inc.	1,232		33,560
Health Care REIT Inc.	458		16,813
Highwoods Properties Inc.	297		9,661
Home Properties Inc.	324		15,001
Hospitality Properties Trust	351		13,464
Host Hotels & Resorts Inc.	2,426		51,237
HRPT Properties Trust	1,480		13,838
Inland Real Estate Corp.	459		6,940
iStar Financial Inc.	567		20,599
JER Investors Trust Inc.	352		3,861
Kilroy Realty Corp.	162		10,438
Kimco Realty Corp.	1,253		46,774
LaSalle Hotel Properties	430		17,213
Lexington Realty Trust	646		12,190
Liberty Property Trust	432		16,204
Macerich Co. (The)	396		28,967


Security	Shares	Value
Maguire Properties Inc.	486	$	13,904
MFA Mortgage Investments Inc.	1,047		7,350
National Health Investors Inc.	216		6,826
National Retail Properties Inc.	270		5,848
Nationwide Health Properties Inc.	534		12,725
NorthStar Realty Finance Corp.	860		8,677
Omega Healthcare Investors Inc.	731		9,452
Parkway Properties Inc.	350		14,203
Pennsylvania Real Estate Investment Trust	404		15,732
Post Properties Inc.	343		15,106
ProLogis	1,436		81,708
Ramco-Gershenson Properties Trust	195		6,279
Realty Income Corp.	646		15,162
Regency Centers Corp.	297		19,266
Saul Centers Inc.	161		6,983
Senior Housing Properties Trust	270		4,666
Simon Property Group Inc.	1,219		105,480
SL Green Realty Corp.	327		39,704
Sovran Self Storage Inc.	216		9,310
Strategic Hotels & Resorts Inc.	340		7,235
Sun Communities Inc.	381		10,371
Sunstone Hotel Investors Inc.	231		5,733
Tanger Factory Outlet Centers Inc.	459		15,344
Taubman Centers Inc.	270		12,984
Thornburg Mortgage Inc.^b	1,214		30,860
UDR Inc.	949		21,912
Universal Health Realty Income Trust	690		20,183
U-Store-It Trust	980		14,024
Ventas Inc.	993		32,392
Vornado Realty Trust	880		94,186
Washington Real Estate Investment Trust	627		18,710
Weingarten Realty Investors	639		23,394

			1,796,532

RETAIL – 3.55%
Abercrombie & Fitch Co. Class A	540		37,746
Advance Auto Parts Inc.	610		21,210
Aeropostale Inc.^a	385		14,661
American Eagle Outfitters Inc.	1,007		24,430
AnnTaylor Stores Corp.^a	548		17,218
AutoNation Inc.^a	1,134		22,090


Security	Shares	Value
AutoZone Inc.^a	378	$	47,934
Barnes & Noble Inc.	297		9,964
Best Buy Co. Inc.	2,538		113,169
Big Lots Inc.^a,b	648		16,757
BJ’s Wholesale Club Inc.^a	378		12,837
Blockbuster Inc. Class A^a	1,287		5,521
Brinker International Inc.	810		21,821
Brown Shoe Co. Inc.	433		9,067
Buckle Inc. (The)	81		2,831
Build-A-Bear Workshop Inc.^a	241		4,820
Cabela’s Inc. Class A^a	232		4,735
CarMax Inc.^a	1,456		34,842
Cash America International Inc.	218		7,983
Cato Corp. Class A	162		3,350
CEC Entertainment Inc.^a	216		6,374
Chipotle Mexican Grill Inc. Class B^a	63		5,117
CKE Restaurants Inc.	270		4,668
CSK Auto Corp.^a	403		5,497
CVS Caremark Corp.	8,915		313,719
Darden Restaurants Inc.	837		35,631
Delhaize Group SP ADR	513		47,688
Dick’s Sporting Goods Inc.^a	264		14,845
Dillard’s Inc. Class A	378		11,298
DSW Inc. Class A^a	131		4,354
Family Dollar Stores Inc.	918		27,191
Foot Locker Inc.	1,077		19,989
GameStop Corp. Class A^a	536		21,628
Gap Inc. (The)	3,645		62,694
Genesco Inc.^a	108		5,459
Home Depot Inc.	11,769		437,454
IHOP Corp.	108		7,045
Jack in the Box Inc.^a	216		13,822
Kenneth Cole Productions Inc. Class A	242		5,118
Kohl’s Corp.^a	1,701		103,421
Landry’s Restaurants Inc.	135		3,576
Limited Brands Inc.	2,079		50,208
Longs Drug Stores Corp.	162		7,834
Lowe’s Companies Inc.	8,953		250,774
Macy’s Inc.	3,020		108,931
McDonald’s Corp.	7,155		342,510
Men’s Wearhouse Inc. (The)	295		14,573
Movado Group Inc.	108		3,050
MSC Industrial Direct Co. Inc. Class A	347		17,451


Security	Shares	Value
New York & Co. Inc.^a	496	$	4,836
99 Cents Only Stores^a	422		5,136
Nordstrom Inc.	1,404		66,802
Nu Skin Enterprises Inc. Class A	297		4,609
OfficeMax Inc.	615		20,221
Payless ShoeSource Inc.^a	378		10,062
Penney (J.C.) Co. Inc.	1,242		84,506
Penske Automotive Group Inc.	216		4,208
RadioShack Corp.	570		14,324
Regis Corp.	243		8,471
Retail Ventures Inc.^a	482		6,276
Rite Aid Corp.^a	3,349		18,453
Saks Inc.	675		12,494
Sonic Automotive Inc.	162		4,439
Stage Stores Inc.	241		4,299
Steak n Shake Co. (The)^a	460		6,900
Talbots Inc. (The)^b	243		5,587
Target Corp.	4,508		273,050
Tiffany & Co.	810		39,083
Tim Hortons Inc.	843		26,023
TJX Companies Inc.	2,808		77,922
Triarc Companies Inc. Class B	273		3,907
Tween Brands Inc.^a	352		13,468
Under Armour Inc. Class A^a	104		6,387
Walgreen Co.	6,042		266,936
Wal-Mart Stores Inc.	14,801		680,106
Wendy’s International Inc.	623		21,824
World Fuel Services Corp.	214		8,750
Yum! Brands Inc.	3,240		103,810

			4,187,794

SAVINGS & LOANS – 0.27%
FirstFed Financial Corp.^a,b	254		11,481
New York Community Bancorp Inc.	1,594		25,871
NewAlliance Bancshares Inc.	1,160		15,672
Sovereign Bancorp Inc.	2,510		48,041
Washington Mutual Inc.	5,747		215,685

			316,750

SEMICONDUCTORS – 1.07%
Advanced Micro Devices Inc.^a	3,779		51,168
Advanced Semiconductor Engineering Inc. ADR^a,b	5,509		36,139


Security	Shares	Value
Analog Devices Inc.	1,699	$	60,230
Emulex Corp.^a	475		9,405
Fairchild Semiconductor International Inc. Class A^a	1,294		23,616
Infineon Technologies AG ADR^a	5,027		82,292
International Rectifier Corp.^a	709		26,027
LSI Corp.^a	6,480		46,656
MEMC Electronic Materials Inc.^a	1,107		67,881
Micron Technology Inc.^a	4,501		53,427
National Semiconductor Corp.	2,288		59,465
Semiconductor Manufacturing International Corp. ADR^a	3,101		19,939
STMicroelectronics NV NYS	3,751		64,367
Taiwan Semiconductor Manufacturing Co. Ltd. SP ADR	23,986		243,458
Teradyne Inc.^a	1,782		27,960
Texas Instruments Inc.	8,690		305,801
United Microelectronics Corp. SP ADR	25,135		81,186

			1,259,017

SOFTWARE – 1.00%
American Reprographics Co.^a	210		5,233
Automatic Data Processing Inc.	3,159		146,641
BMC Software Inc.^a	1,242		35,670
Broadridge Financial Solutions Inc.	1,050		18,470
CA Inc.	2,592		65,007
Dun & Bradstreet Corp. (The)	404		39,495
eFunds Corp.^a	270		9,653
Fair Isaac Corp.	458		17,981
Fidelity National Information Services Inc.	1,654		82,088
First Data Corp.	4,453		141,561
Global Payments Inc.	432		16,157
IMS Health Inc.	1,323		37,216
Konami Corp. ADR	591		13,481
MasterCard Inc. Class A	381		61,265
MoneyGram International Inc.	660		16,889
NAVTEQ Corp.^a	747		40,435
Red Hat Inc.^a	1,076		22,402
Salesforce.com Inc.^a	533		20,712
SAP AG SP ADR	5,038		271,649


Security	Shares	Value
Satyam Computer Services Ltd. ADR	1,934	$	51,560
Sybase Inc.^a	540		12,809
SYNNEX Corp.^a	223		4,531
Total System Services Inc.	216		6,076
VeriFone Holdings Inc.^a	133		4,843
Wipro Ltd. ADR	2,458		35,887

			1,177,711

TELECOMMUNICATIONS – 7.54%
Alcatel-Lucent SP ADR	13,585		157,586
Alltel Corp.	2,079		137,110
Amdocs Ltd.^a	1,052		38,072
America Movil SAB de CV Series L ADR	4,944		296,047
American Tower Corp. Class A^a	2,373		98,859
Anixter International Inc.^a	189		15,621
AT&T Inc.	35,466		1,388,849
Avaya Inc.^a	3,024		50,017
BCE Inc.	4,809		181,973
British Telecom PLC SP ADR	4,854		308,617
CenturyTel Inc.	756		34,678
China Mobile Hong Kong Ltd. SP ADR	4,774		273,980
China Netcom Group Corp. Ltd. SP ADR	378		19,410
China Telecom Corp. Ltd. ADR	873		50,372
China Unicom Ltd. ADR	3,383		59,879
Cincinnati Bell Inc.^a	2,403		12,399
Citizens Communications Co.	1,914		27,619
CommScope Inc.^a	427		23,242
Corning Inc.^a	8,906		212,319
Crown Castle International Corp.^a	1,327		48,104
Deutsche Telekom AG SP ADR	16,704		286,975
Embarq Corp.	867		53,572
France Telecom SA SP ADR	9,856		267,788
Harris Corp.	756		41,489
Hellenic Telecommunications Organization SA SP ADR	3,592		54,024
Hypercom Corp.^a	873		4,487
KT Corp. SP ADR	1,566		36,832
Magyar Telekom Telecommunications PLC SP ADR	596		15,419
MasTec Inc.^a	597		8,161


Security	Shares	Value
MetroPCS Communications Inc.^a	127	$	4,651
Mobile TeleSystems SP ADR	1,131		72,327
NeuStar Inc. Class A^a	574		16,554
Nippon Telegraph and Telephone Corp. ADR	5,838		125,926
Nokia OYJ SP ADR	23,482		672,524
Nortel Networks Corp.^a	2,964		64,141
NTT DoCoMo Inc. SP ADR	10,122		139,785
Philippine Long Distance Telephone Co. SP ADR	675		38,583
Plantronics Inc.	651		18,241
Portugal Telecom SGPS SP ADR	6,318		88,452
PT Indosat Tbk ADR	326		13,122
PT Telekomunikasi Indonesia SP ADR	1,485		70,671
Qwest Communications International Inc.^a	8,858		75,559
Rostelecom SP ADR	412		23,484
Royal KPN NV SP ADR	11,335		175,579
SK Telecom Co. Ltd. ADR	2,098		59,038
Sprint Nextel Corp.	16,063		329,773
Swisscom AG SP ADR	760		25,688
Syniverse Holdings Inc.^a	420		5,649
Telecom Argentina SA SP ADR^a	620		13,367
Telecom Corp. of New Zealand Ltd. SP ADR	1,164		32,254
Telecom Italia SpA SP ADR	6,239		166,581
Telefonica SA SP ADR	8,131		571,040
Telefonos de Mexico SP ADR	2,269		77,532
Telkom SA Ltd. SP ADR	302		28,385
TELUS Corp.	1,029		56,286
Turkcell Iletisim Hizmetleri AS ADR	1,083		19,147
Verizon Communications Inc.	16,292		694,365
Videsh Sanchar Nigam Ltd. ADR	327		7,521
Vimpel-Communications SP ADR	544		57,610
Vodafone Group PLC SP ADR	29,864		906,372
Windstream Corp.	3,006		41,363

			8,895,070

TEXTILES – 0.03%
Mohawk Industries Inc.^a	297		26,733
UniFirst Corp.	159		5,972

			32,705


Security	Shares	Value
TOYS, GAMES & HOBBIES – 0.09%
Hasbro Inc.	864	$	24,209
LeapFrog Enterprises Inc.^a	862		7,792
Lenox Group Inc.^a	793		4,964
Marvel Entertainment Inc.^a	513		12,430
Mattel Inc.	2,403		55,053

			104,448

TRANSPORTATION – 1.27%
Bristow Group Inc.^a	234		11,099
Burlington Northern Santa Fe Corp.	2,049		168,305
Canadian National Railway Co.	2,923		152,376
Canadian Pacific Railway Ltd.	891		65,872
CHC Helicopter Corp. Class A	216		5,815
Con-way Inc.	468		23,115
CSX Corp.	2,376		112,646
FedEx Corp.	1,700		188,258
Frontline Ltd.	325		14,963
Genesee & Wyoming Inc. Class A^a	238		6,105
Guangshen Railway Co. Ltd. SP ADR	293		11,263
Kansas City Southern Industries Inc.^a	351		12,113
Kirby Corp.^a	370		14,989
Knight Transportation Inc.	285		5,027
Laidlaw International Inc.	567		19,278
Norfolk Southern Corp.	2,480		133,374
Overseas Shipholding Group Inc.	135		10,475
Ryder System Inc.	351		19,084
Ship Finance International Ltd.	461		12,885
Teekay Corp.	378		21,194
Tsakos Energy Navigation Ltd.	108		7,851
Union Pacific Corp.	1,497		178,353
United Parcel Service Inc. Class B	3,960		299,851

			1,494,291

TRUCKING & LEASING – 0.01%
GATX Corp.	298		13,517

			13,517

WATER – 0.47%
American States Water Co.	272		10,034
Aqua America Inc.^b	677		14,813
California Water Service Group	239		8,843
Companhia de Saneamento Basico do Estado de Sao Paulo ADR	322		15,398


Security	Shares	Value
Suez SA ADR	6,561	$	345,109
Veolia Environnement ADR	2,129		158,249

			552,446


TOTAL COMMON STOCKS (Cost: $109,359,271)			117,784,960

PREFERRED STOCKS – 0.04%

ELECTRIC – 0.01%
Companhia Paranaense de Energia SP ADR	832		13,645

			13,645

FOREST PRODUCTS & PAPER – 0.03%
Aracruz Celulose SA SP ADR	346		21,874
Votorantim Celulose e Papel SA SP ADR	217		5,158

			27,032

REAL ESTATE INVESTMENT TRUSTS – 0.00%
Public Storage Class A, 6.13%	54		1,390

			1,390


TOTAL PREFERRED STOCKS (Cost: $36,451)			42,067

SHORT-TERM INVESTMENTS – 0.21%

MONEY MARKET FUNDS – 0.21%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares 5.31%^d,e	48,887		48,887
BGI Cash Premier Fund LLC 5.34%^d,e,f	201,529		201,529

			250,416


TOTAL SHORT-TERM INVESTMENTS (Cost: $250,416)			250,416


TOTAL INVESTMENTS IN SECURITIES – 100.07% (Cost: $109,646,138)			118,077,443

Other Assets, Less Liabilities – (0.07)%			(79,832	)


NET ASSETS – 100.00%		$	117,997,611

ADR – American Depositary Receipts

NVS – Non-Voting Shares

NYS – New York Registered Shares

SP ADR – Sponsored American Depositary Receipts

^a	Non-income earning security.

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

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

^d	Affiliated issuer. See Note 2.

^e	The rate quoted is the annualized seven-day yield of the fund at period end.

^f	This security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.


Security	Shares	Value
COMMON STOCKS – 99.88%

AEROSPACE & DEFENSE – 2.80%
Boeing Co. (The)	25,060	$	2,591,956
General Dynamics Corp.	12,777		1,003,761
Lockheed Martin Corp.	12,023		1,184,025
United Technologies Corp.	32,442		2,367,293

			7,147,035

AGRICULTURE – 1.92%
Altria Group Inc.	73,787		4,904,622

			4,904,622

BANKS – 6.89%
Bank of America Corp.	169,204		8,023,654
Bank of New York Mellon Corp. (The)	38,549		1,640,260
SunTrust Banks Inc.	18,843		1,475,407
U.S. Bancorp	75,920		2,273,804
Wells Fargo & Co.	124,132		4,191,938

			17,605,063

BEVERAGES – 3.49%
Anheuser-Busch Companies Inc.	25,720		1,254,364
Coca-Cola Co. (The)	74,912		3,903,664
PepsiCo Inc.	57,458		3,770,394

			8,928,422

BIOTECHNOLOGY – 0.48%
Genentech Inc.^a	16,431		1,222,138

			1,222,138

CHEMICALS – 1.21%
Dow Chemical Co. (The)	35,719		1,553,062
Du Pont (E.I.) de Nemours and Co.	33,201		1,551,483

			3,104,545

COMPUTERS – 4.39%
EMC Corp.^a	81,948		1,516,857
Hewlett-Packard Co.	94,981		4,371,975
International Business Machines Corp.	48,024		5,313,856

			11,202,688

COSMETICS & PERSONAL CARE – 3.18%
Colgate-Palmolive Co.	18,343		1,210,638
Procter & Gamble Co.	111,593		6,903,143

			8,113,781


Security	Shares	Value
DIVERSIFIED FINANCIAL SERVICES – 11.87%
American Express Co.	37,744	$	2,209,534
Capital One Financial Corp.	17,105		1,210,350
Citigroup Inc.	183,004		8,522,496
Federal Home Loan Mortgage Corp.	25,159		1,440,856
Federal National Mortgage Association	35,166		2,104,333
Franklin Resources Inc.	5,975		761,036
Goldman Sachs Group Inc. (The)	13,105		2,468,196
JPMorgan Chase & Co.	133,244		5,864,068
Lehman Brothers Holdings Inc.	20,386		1,263,932
Merrill Lynch & Co. Inc.	30,309		2,248,928
Morgan Stanley	34,880		2,227,786

			30,321,515

ELECTRIC – 1.84%
Dominion Resources Inc.	12,490		1,051,908
Exelon Corp.	23,719		1,663,888
Southern Co. (The)	26,946		906,463
TXU Corp.	16,378		1,068,664

			4,690,923

ELECTRICAL COMPONENTS & EQUIPMENT – 0.57%
Emerson Electric Co.	30,708		1,445,426

			1,445,426

FOOD – 0.74%
Kraft Foods Inc.	57,922		1,896,945

			1,896,945

HEALTH CARE - PRODUCTS – 3.84%
Alcon Inc.	2,715		370,597
Baxter International Inc.	22,909		1,205,013
Johnson & Johnson	101,872		6,163,256
Medtronic Inc.	40,816		2,068,147

			9,807,013

HEALTH CARE - SERVICES – 1.55%
UnitedHealth Group Inc.	47,486		2,299,747
WellPoint Inc.^a	21,944		1,648,433

			3,948,180

HOUSEHOLD PRODUCTS & WARES – 0.43%
Kimberly-Clark Corp.	16,186		1,088,832

			1,088,832


Security	Shares	Value
INSURANCE – 4.38%
Allstate Corp. (The)	21,844	$	1,161,009
American International Group Inc.	80,884		5,191,135
Hartford Financial Services Group Inc. (The)	11,908		1,093,988
MetLife Inc.	15,980		962,316
Prudential Financial Inc.	16,888		1,496,783
Travelers Companies Inc. (The)	25,275		1,283,464

			11,188,695

LEISURE TIME – 0.27%
Carnival Corp.	15,687		695,091

			695,091

MACHINERY – 0.72%
Caterpillar Inc.	23,373		1,841,792

			1,841,792

MANUFACTURING – 7.61%
General Electric Co.	362,223		14,039,763
Honeywell International Inc.	26,127		1,502,564
Illinois Tool Works Inc.	18,013		991,616
3M Co.	23,354		2,076,638
Tyco International Ltd.	17,560		830,412

			19,440,993

MEDIA – 2.78%
News Corp. Class A	67,297		1,421,313
Time Warner Inc.	136,688		2,632,611
Viacom Inc. Class B^a	23,009		881,245
Walt Disney Co. (The)	65,948		2,176,284

			7,111,453

MINING – 0.50%
Alcoa Inc.	33,297		1,271,945

			1,271,945

OIL & GAS – 13.01%
Chevron Corp.	75,639		6,448,981
ConocoPhillips	53,528		4,327,204
Devon Energy Corp.	14,895		1,111,316
Exxon Mobil Corp.	199,874		17,015,274
Marathon Oil Corp.	24,411		1,347,487
Occidental Petroleum Corp.	29,361		1,665,356
Valero Energy Corp.	19,468		1,304,551

			33,220,169


Security	Shares	Value
OIL & GAS SERVICES – 2.00%
Halliburton Co.	32,341	$	1,164,923
Schlumberger Ltd.	41,538		3,934,479

			5,099,402

PHARMACEUTICALS – 8.18%
Abbott Laboratories	54,182		2,746,486
Bristol-Myers Squibb Co.	69,243		1,967,194
Cardinal Health Inc.	13,598		893,797
Lilly (Eli) & Co.	34,139		1,846,578
Merck & Co. Inc.	76,561		3,801,254
Pfizer Inc.	249,319		5,861,490
Schering-Plough Corp.	52,200		1,489,788
Wyeth	47,043		2,282,526

			20,889,113

RETAIL – 6.11%
CVS Caremark Corp.	55,259		1,944,564
Home Depot Inc.	71,177		2,645,649
Lowe’s Companies Inc.	54,822		1,535,564
McDonald’s Corp.	42,495		2,034,236
Target Corp.	27,443		1,662,223
Walgreen Co.	36,079		1,593,970
Wal-Mart Stores Inc.	91,348		4,197,441

			15,613,647

SEMICONDUCTORS – 0.76%
Texas Instruments Inc.	55,322		1,946,781

			1,946,781

SOFTWARE – 0.36%
Automatic Data Processing Inc.	19,644		911,874

			911,874

TELECOMMUNICATIONS – 6.41%
AT&T Inc.	216,278		8,469,446
Corning Inc.^a	61,307		1,461,559
Sprint Nextel Corp.	101,472		2,083,220
Verizon Communications Inc.	102,541		4,370,297

			16,384,522

TRANSPORTATION – 1.59%
Burlington Northern Santa Fe Corp.	13,143		1,079,566
FedEx Corp.	10,216		1,131,320
United Parcel Service Inc. Class B	24,367		1,845,069

			4,055,955


TOTAL COMMON STOCKS (Cost: $247,314,247)			255,098,560


Security	Shares	Value
SHORT-TERM INVESTMENTS – 0.14%

MONEY MARKET FUNDS – 0.14%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares 5.31%^b,c	363,500	$	363,500

			363,500


TOTAL SHORT-TERM INVESTMENTS (Cost: $363,500)			363,500


TOTAL INVESTMENTS IN SECURITIES – 100.02% (Cost: $247,677,747)			255,462,060

Other Assets, Less Liabilities – (0.02)%			(57,554	)


NET ASSETS – 100.00%		$	255,404,506

^a	Non-income earning security.

^b	Affiliated issuer. See Note 2.

^c	The rate quoted is the annualized seven-day yield of the fund at period end.

See notes to financial statements.

These financial statements relate only to the iShares S&P GSTI^™ Technology (formerly iShares Goldman Sachs Technology Index Fund), iShares S&P GSTI^™ Networking (formerly iShares Goldman Sachs Networking Index Fund), iShares S&P GSTI^™ Semiconductor (formerly iShares Goldman Sachs Semiconductor Index Fund), iShares S&P GSTI^™ Software (formerly iShares Goldman Sachs Software Index Fund), iShares S&P GSSI^™ Natural Resources (formerly iShares Goldman Sachs Natural Resources Index Fund), iShares NYSE Composite and iShares NYSE 100 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. 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 NYSE Composite and iShares NYSE 100 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.

traded; (v) a security in default or bankruptcy proceedings for which there is no current market quotation; (vi) a security affected by currency controls or restrictions; and (vii) a security affected by a significant event (i.e., an event that occurs after the close of the markets on which the security is traded but before the time as of which the Fund’s NAV is computed and that may materially affect the value of the Fund’s investments). Examples of events that may be “significant events” are government actions, natural disasters, armed conflict, acts of terrorism, and significant market fluctuations.

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. Distributions received by the Funds may include a return of capital that is estimated by management. Such amounts are recorded as a reduction of the cost of investments or reclassified to capital gains. Realized gains and losses on investment transactions are determined using the specific identification method.

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 July 31, 2007, the tax year-end of the Funds, the components of net distributable earnings (accumulated losses) on a tax basis were as follows:

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 carry forwards) 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 July 31, 2007.

From November 1, 2006 to July 31, 2007, the Funds incurred net realized capital losses. As permitted by tax regulations, the Funds have elected to defer those losses and treat them as arising in the year ending July 31, 2008, as follows:

The Funds had tax basis net capital loss carry forwards as of July 31, 2007, the tax year-end of the Funds, as follows:

Net capital loss carry forwards 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 July 31, 2007, 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 July 31, 2007 are disclosed in the Funds’ Statements of Operations.

As of July 31, 2007, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:

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:

Cross trades for the year ended July 31, 2007, if any, were executed by the Funds pursuant to Rule 17a-7 under the 1940 Act. Cross trading is the buying or selling of portfolio securities between funds to which BGFA (or an affiliate) serves as investment adviser. At its regularly scheduled quarterly meetings, the Board reviews such transactions as of the most recent calendar quarter for compliance with the requirements and restrictions set forth by Rule 17a-7.

Each Fund may invest in the Institutional Shares of certain money market funds managed by BGFA, the Funds’ investment adviser, including the Government Money Market Fund (“GMMF”), Institutional Money Market Fund (“IMMF”), Prime Money Market Fund (“PMMF”) and Treasury Money Market Fund (“TMMF”) of Barclays Global Investors Funds. The GMMF, IMMF, PMMF and TMMF 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, Prime Money Market Master Portfolio and Treasury Money Market Master Portfolio (collectively, the “Money Market Master Portfolios”), respectively, which are also managed by BGFA. While the GMMF, IMMF, PMMF and TMMF do not directly charge an investment advisory fee, the Money Market Master Portfolios in which they invest do charge an investment advisory fee. Income distributions from the GMMF, IMMF, PMMF and TMMF are declared daily and paid monthly from net investment income. Income distributions earned by the Funds from temporary cash investments are recorded as interest from affiliated issuers in the accompanying Statements of Operations. Income distributions earned by the Funds from the investment of securities lending collateral, if any, are included in securities lending income in the accompanying Statements of Operations.

For the year ended July 31, 2007, the iShares NYSE Composite Index Fund had direct investments (exclusive of short-term investments) in issuers of which BGFA is an affiliate or issuers of which the Fund owns 5% or more of the outstanding voting securities as follows:

As of July 31, 2007, certain trustees and officers of the Trust are also officers of BGI and/or BGFA.

Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the year ended July 31, 2007 were as follows:

In-kind transactions (see Note 4) for the year ended July 31, 2007 were as follows:

During the year ended July 31, 2007, certain Funds received cash as collateral for securities loaned. The cash collateral received was invested in a joint account and in the Premier Fund. Pursuant to an exemptive order issued by the SEC, a portion of 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 are fully collateralized by U.S. government securities or non-U.S. government debt securities. The Premier Fund seeks to achieve its investment objective by investing in a portfolio of high-quality, short-term fixed-income instruments, including money market funds (which may be managed by BGFA or its affiliate) and other instruments that, at the time of investment, have remaining maturities of 397 calendar days or less from the date of acquisition.

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 iShares S&P GSTI^™ Technology Index Fund (formerly iShares Goldman Sachs Technology Index Fund), iShares S&P GSTI^™ Networking Index Fund (formerly iShares Goldman Sachs Networking Index Fund), iShares S&P GSTI^™ Semiconductor Index Fund (formerly iShares Goldman Sachs Semiconductor Index Fund), iShares S&P GSTI^™ Software Index Fund (formerly iShares Goldman Sachs Software Index Fund), iShares S&P GSSI^™ Natural Resources Index Fund (formerly iShares Goldman Sachs Natural Resources Index Fund), iShares NYSE Composite Index Fund and iShares NYSE 100 Index Fund, each a fund of iShares Trust (the “Funds”), at July 31, 2007, the results of each of their operations, the changes in each of their net assets and their financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with 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 July 31, 2007 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

For corporate shareholders, the following percentages of the income dividends paid by certain Funds during the fiscal year ended July 31, 2007 qualified for the dividends-received deduction:

Under Section 854(b)(2) of the Internal Revenue Code (the “Code”), certain Funds hereby designate the following maximum amounts as qualified dividend income for purposes of the maximum rate under Section 1(h)(11) of the Code for the fiscal year ended July 31, 2007:

The Board determined that there would be no diminution in the scope of services required of BGFA under the Advisory Contract for the coming year as compared to the scope of services provided by BGFA over the past year. In reviewing the scope of these services, the Board considered BGFA’s investment philosophy and experience, noting that BGFA and its affiliates have committed significant resources over time, including over the past year, including investment in technology and increasing the number of their employees supporting the Funds. The Board also considered BGFA’s compliance program and its compliance record with respect to the Funds. In that regard, the Board noted that BGFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and has made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Funds. In addition to the above considerations, the Board considered BGFA’s investment processes and strategies, and matters related to BGFA’s portfolio transaction policies and procedures. The Board further noted that BGFA does not serve as investment adviser for any other series of registered investment companies with substantially similar investment objectives and strategies as the Funds; therefore, comparative performance information was generally not available. However, the Board also noted that the Funds had met their investment objectives consistently since their respective inception dates. Based on review of this information, the Board concluded that the nature, extent and quality of services to be provided by BGFA to the Funds under the Advisory Contract were appropriate and mitigated in favor of the Board’s approval of the Advisory Contract for the coming year.

The Board reviewed statistical information prepared by Lipper Inc. (“Lipper”), an independent provider of investment company data, regarding the expense ratio components, including advisory fees, waivers/reimbursements, and gross and net total expenses of each Fund in comparison with the same information for other funds registered under the 1940 Act objectively selected solely by Lipper as comprising each Fund’s applicable peer group (the “Lipper Group”). In addition, the Board reviewed statistical information prepared by Lipper regarding the performance of each Fund for the one-, three- and five-year periods, as applicable, and the “last quarter” period ended March 31, 2007, and a comparison of each Fund’s performance to that of the funds in its Lipper Group for the same periods. Because there are few, if any, exchange traded funds or index funds that track indexes similar to those tracked by the Funds, the Lipper Groups included in part, at the request of BGFA, mutual funds, closed-end funds, exchange traded funds, and funds with differing investment objective classifications, investment focuses and other characteristics (e.g., actively managed funds and funds sponsored by “at cost” service providers). In support of its review of the statistical information, the Board was provided with a detailed description of the methodology used by Lipper to determine the applicable Lipper Groups and to prepare this information. The Board further noted that due to the limitations in providing comparable funds in the various Lipper Groups, the statistical information may or may not provide meaningful direct comparisons to the Funds. The Board noted that most of the Funds generally performed in line with the funds in their respective Lipper Groups over the relevant periods; however, certain of the Funds may have underperformed or outperformed funds in their respective Lipper Groups over such periods. In considering this information, the Board noted that the Lipper Groups include funds that may have different investment

Board Review and Approval of Investment Advisory Contract (Unaudited) (Continued)

objectives and/or benchmarks from the Funds. In addition, the Board noted that each Fund seeks to track an index and that during the prior year the Board received periodic reports on the Funds’ performance in comparison with their relevant benchmark indexes. Such comparative performance information was also considered by the Board.

COSTS OF SERVICES PROVIDED TO FUNDS AND PROFITS REALIZED BY BGFA AND AFFILIATES

In connection with its review of the Funds’ profitability analysis, the Board reviewed information regarding economies of scale or other efficiencies that may result from increases in the Funds’ assets. The Board noted that the Advisory Contract did not provide for any breakpoints in the Funds’ investment advisory fee rates as the assets of the Funds increase. However, the Board further noted that possible future economies of scale for the Funds had been taken into consideration by fixing the investment advisory fees at rates at the lower end of the marketplace, effectively giving Fund shareholders, from inception, the benefits of the lower average fee shareholders would have received from a fee structure with declining breakpoints where the initial fee was higher. In addition, the Board noted that at its meeting held on March 9, 2006, it approved a reduction in the investment advisory fee rates for the iShares S&P GSSI^™/GSTI^™ series sector Funds. The Board also reviewed BGFA’s historic profitability as investment adviser to the iShares fund complex and noted that BGFA had made a significant investment in the iShares funds and had incurred operating losses during earlier years when the iShares funds, including the Funds, had not yet reached scale. In light of this history, the Board determined that further reductions in fee rates or additions of breakpoints were not warranted at this juncture for the Funds. Based on this review, as well as the discussions described above in connection with the Lipper Group comparisons, the Board, recognizing its responsibility to consider this issue at least annually, concluded that the structure of the investment advisory fees reflects the sharing of economies of scale with the Funds’ shareholders.

FEES AND SERVICES PROVIDED FOR OTHER COMPARABLE FUNDS/ACCOUNTS MANAGED BY BGFA AND ITS AFFILIATES

Board Review and Approval of Investment Advisory Contract (Unaudited) (Continued)

the Funds. However, the Board noted that BGFA provided the Board with general information regarding how the level of services provided to the Other Accounts differed from the level of services provided to the Funds. Based on this review, the Board determined that the investment advisory fee rates under the Advisory Contract do not constitute fees that are so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded that the investment advisory fee rates under the Advisory Contract are fair and reasonable.

The Board reviewed any ancillary revenue received by BGFA and/or its affiliates in connection with the services provided to the Funds by BGFA, such as any payment of revenue to BGI, the Trust’s securities lending agent, for loaning any portfolio securities, and the payment of advisory fees and/or administration fees to BGFA and BGI in connection with any investment by the Funds in other funds for which BGFA provides investment advisory services and/or BGI provides administration services. The Board noted that BGFA does not use soft dollars or consider the value of research or other services that may be provided to BGFA (including its affiliates) in selecting brokers for portfolio transactions for the Funds. The Board further noted that any portfolio transactions on behalf of the Funds placed through a BGFA affiliate are reported to the Board pursuant to Rule 10f-3 and Rule 17e-1, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Funds’ shareholders.

Based on this analysis, the Board determined that the Advisory Contract, including the investment advisory fee rates there under, is fair and reasonable in light of all relevant circumstances, and concluded that it is in the best interest of the Funds and their shareholders to approve the Advisory Contract for the coming year.

iShares S&P Domestic Index Funds

iShares S&P 1500 (ISI)

iShares S&P 100 (OEF)

iShares S&P 500 (IVV)

iShares S&P 500 Growth (IVW)

iShares S&P 500 Value (IVE)

iShares S&P MidCap 400 (IJH)

iShares S&P MidCap 400 Growth (IJK)

iShares S&P MidCap 400 Value (IJJ)

iShares S&P SmallCap 600 (IJR)

iShares S&P SmallCap 600 Growth (IJT)

iShares S&P SmallCap 600 Value (IJS)

iShares S&P GSSI^™ Natural Resources (IGE)

iShares S&P GSTI^™ Networking (IGN)

iShares S&P GSTI^™ Semiconductor (IGW)

iShares S&P GSTI^™ Software (IGV)

iShares S&P GSTI^™ Technology (IGM)

iShares Domestic Sector Index Funds

iShares Cohen & Steers Realty Majors (ICF)

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

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

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

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 Transportation Average (IYT)

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

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

iShares Nasdaq Biotechnology (IBB)

iShares Domestic Subsector Index Funds

iShares Dow Jones U.S. Aerospace & Defense (ITA)

iShares Dow Jones U.S. Broker-Dealers (IAI)

iShares Dow Jones U.S. Healthcare Providers (IHF)

iShares Dow Jones U.S. Home Construction (ITB)

iShares Dow Jones U.S. Insurance (IAK)

iShares Dow Jones U.S. Medical Devices (IHI)

iShares Dow Jones U.S. Oil & Gas Exploration & Production (IEO)

iShares Dow Jones U.S. Oil Equipment & Services (IEZ)

iShares Dow Jones U.S. Pharmaceuticals (IHE)

iShares Dow Jones U.S. Regional Banks (IAT)

iShares FTSE NAREIT Industrial/Office (FIO)

iShares FTSE NAREIT Mortgage REITs (REM)

iShares FTSE NAREIT Real Estate 50 (FTY)

iShares FTSE NAREIT Residential (REZ)

iShares FTSE NAREIT Retail (RTL)

iShares Global Index Funds

iShares S&P Global 100 (IOO)

iShares S&P Global Consumer Discretionary Sector (RXI)

iShares S&P Global Consumer Staples Sector (KXI)

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 Industrials Sector (EXI)

iShares S&P Global Materials Sector (MXI)

iShares S&P Global Technology Sector (IXN)

iShares S&P Global Telecommunications Sector (IXP)

iShares S&P Global Utilities Sector (JXI)

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 Russell Microcap^™ (IWC)

iShares International Country 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 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 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/TOPIX 150 (ITF)

iShares Bond Funds

iShares Lehman Aggregate (AGG)

iShares Lehman Short Treasury (SHV)

iShares Lehman 1-3 Year Treasury (SHY)

iShares Lehman 3-7 Year Treasury (IEI)

iShares Lehman 7-10 Year Treasury (IEF)

iShares Lehman 10-20 Year Treasury (TLH)

iShares Lehman 20+ Year Treasury (TLT)

iShares Lehman TIPS (TIP)

iShares Lehman Credit (CFT)

iShares Lehman 1-3 Year Credit (CSJ)

iShares Lehman Intermediate Credit (CIU)

iShares iBoxx $ Investment Grade Corporate (LQD)

iShares Lehman Government/Credit (GBF)

iShares Lehman Intermediate Government/Credit (GVI)

iShares Lehman MBS Fixed-Rate (MBB)

iShares iBoxx $ High Yield Corporate (HYG)

iShares Specialty Index Funds

iShares KLD Select Social^SM(KLD)

iShares KLD 400 Social (DSI)

iShares Dow Jones Select Dividend (DVY)

iShares Dow Jones EPAC Select Dividend (IDV)

iShares S&P U.S. Preferred Stock (PFF)

iShares International Index Funds

iShares MSCI EAFE (EFA)

iShares MSCI EAFE Growth (EFG)

iShares MSCI EAFE Value (EFV)

iShares MSCI Emerging Markets (EEM)

iShares MSCI EMU (EZU)

iShares MSCI Pacific ex-Japan (EPP)

iShares S&P Europe 350 (IEV)

iShares S&P Latin America 40 (ILF)

iShares S&P World ex-U.S. Property (WPS)

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 NYSE Index Funds

iShares NYSE Composite (NYC)

iShares NYSE 100 (NY)

iShares^® is a registered trademark of Barclays Global Investors, N.A. The iShares Funds are not sponsored, endorsed or issued by Lehman Brothers, nor are they sponsored, endorsed, issued, sold or promoted by Cohen & Steers Capital Management, Inc., Dow Jones & Company, Inc., FTSE International Limited (“FTSE”), FTSE/Xinhua Index Limited (“FXI”), iBoxx, KLD Research & Analytics, Inc., Morgan Stanley Capital International, Morningstar, Inc., The NASDAQ Stock Market, Inc., National Association of Real Estate Investment Trusts (“NAREIT”), 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. iBoxx is a registered trademark of International Index Company Limited. FXI does not make any warranty regarding the FTSE/Xinhua Index. All rights in the FTSE/Xinhua Index vest in FXI. Neither FTSE nor NAREIT makes any warranty regarding the FTSENAREIT Real Estate 50 Index, FTSENAREIT Residential Index, FTSENAREIT Retail Index, FTSENAREIT Mortgage REITs Index or FTSENAREIT Industrial/Office Index; all rights vest in NAREIT. “FTSE” is a trade and service mark of London Stock Exchange and The Financial Times; “Xinhua” is a trade and service mark of Xinhua Financial Network Limited. “NAREIT^®” is a trademark of NAREIT.

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.

As of July 31, 2007, iShares Trust (the “Registrant”) had adopted a code of ethics that applies to persons appointed by the Registrant’s Board of Trustees as the President and/or Chief Financial Officer, and any persons performing similar functions. For the fiscal year ended July 31, 2007, 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).

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 Charles A. Hurty, John E. Kerrigan, George G.C. Parker and Robert H. Silver, all of whom are independent, as that term is defined under Item 3(a)(2).

The principal accountant fees disclosed in items 4(a), 4(b), 4(c), 4(d) and 4(g) are for eleven series of the Registrant for which the fiscal year-end is July 31, 2007 (the “Funds”), and whose annual financial statements are reported in Item 1.

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 George G.C. Parker, Cecilia H. Herbert, Charles A. Hurty, John E. Kerrigan and Robert H. Silver.

The Funds’ full schedules of investments are included as part of the reports to shareholders filed under Item 1 of this Form.

There were no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Trustees.

(a) The President (the Registrant’s Principal Executive Officer) and Chief Financial Officer (the Registrant’s 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 Section 4(a) of the attached certification.

(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 second 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.

(a) (1) Code of Ethics for Senior Officers that is the subject of Item 2 is 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.

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.


			Average Annual Total Returns

Year Ended 7/31/07			Five Years Ended 7/31/07			Inception to 7/31/07

NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
23.75%	22.30%	23.91%	19.62%	19.14%	19.85%	12.72%	12.55%	12.89%

			Cumulative Total Returns

Year Ended 7/31/07			Five Years Ended 7/31/07			Inception to 7/31/07

NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
23.75%	22.30%	23.91%	144.90%	140.08%	147.26%	104.29%	102.43%	105.97%


iShares Index Fund	Beginning Account Value (2/1/07)	Ending Account Value (7/31/07)	Annualized Expense Ratio		Expenses Paid During Period^a (2/1/07 to 7/31/07)
FTSE/Xinhua China 25
Actual	$ 1,000.00	$ 1,356.80	0.74	%	$ 4.32
Hypothetical (5% return before expenses)	1,000.00	1,021.10	0.74		3.71
MSCI EAFE
Actual	1,000.00	1,083.90	0.34		1.76
Hypothetical (5% return before expenses)	1,000.00	1,023.10	0.34		1.71
MSCI EAFE Growth
Actual	1,000.00	1,100.50	0.40		2.08
Hypothetical (5% return before expenses)	1,000.00	1,022.80	0.40		2.01
MSCI EAFE Value
Actual	1,000.00	1,066.40	0.40		2.05
Hypothetical (5% return before expenses)	1,000.00	1,022.80	0.40		2.01


Management’s Discussions of Fund Performance		1
Shareholder Expenses (Unaudited)		9
Schedules of Investments		10
iShares FTSE/Xinhua China 25 Index Fund		10
iShares MSCI EAFE Index Fund		12
iShares MSCI EAFE Growth Index Fund		25
iShares MSCI EAFE Value Index Fund		34
Financial Statements		43
Financial Highlights		47
Notes to Financial Statements		51
Report of Independent Registered Public Accounting Firm		59
Tax Information (Unaudited)		60
Board Review and Approval of Investment Advisory Contract (Unaudited)		61
Supplemental Information (Unaudited)		64
Trustee and Officer Information (Unaudited)		66
iShares Family of Funds		72


	iShares FTSE/Xinhua China 25 Index Fund			iShares MSCI EAFE Index Fund			iShares MSCI EAFE Growth Index Fund			iShares MSCI EAFE Value Index Fund

ASSETS
Investments, at cost:
Unaffiliated issuers	$	3,952,990,220		$	33,520,505,714		$	427,523,088		$	1,076,956,697
Affiliated issuers (Note 2)		1,070,826,857			1,531,814,193			5,039,673			21,487,473

Total cost of investments	$	5,023,817,077		$	35,052,319,907		$	432,562,761		$	1,098,444,170

Investments in securities, at value (including securities on loan^a) (Note 1):
Unaffiliated issuers	$	5,835,953,274		$	45,875,556,753		$	510,927,264		$	1,176,447,029
Affiliated issuers (Note 2)		1,070,826,857			1,602,004,127			5,039,673			22,830,430

Total value of investments		6,906,780,131			47,477,560,880			515,966,937			1,199,277,459
Foreign currencies, at value^b		9,293,494			88,020,483			916,913			2,410,429
Receivables:
Investment securities sold		–			32,088,580			342,339			–
Due from custodian		7,556,836			2,033,160			–			1,768,758
Dividends and interest		7,868,934			73,144,977			490,635			2,149,352
Capital shares sold		42,001			1,413,501			–			–

Total Assets		6,931,541,396			47,674,261,581			517,716,824			1,205,605,998


LIABILITIES
Payables:
Investment securities purchased		7,556,836			32,295,982			406,901			2,142,625
Collateral for securities on loan (Note 5)		1,067,799,739			1,301,813,682			4,977,430			6,402,735
Capital shares redeemed		1,739,581			–			–			–
Investment advisory fees (Note 2)		3,586,659			13,598,717			178,249			402,901

Total Liabilities		1,080,682,815			1,347,708,381			5,562,580			8,948,261


NET ASSETS	$	5,850,858,581		$	46,326,553,200		$	512,154,244		$	1,196,657,737


Net assets consist of:
Paid-in capital	$	3,944,316,713		$	33,349,165,812		$	422,310,591		$	1,062,907,758
Undistributed net investment income		52,087,836			685,879,058			6,629,658			18,741,510
Undistributed net realized gain (accumulated net realized loss)		(28,518,625	)		(135,706,376	)		(205,039	)		14,128,072
Net unrealized appreciation on investments and translation of assets and liabilities in foreign currencies		1,882,972,657			12,427,214,706			83,419,034			100,880,397

NET ASSETS	$	5,850,858,581		$	46,326,553,200		$	512,154,244		$	1,196,657,737


Shares outstanding^c		41,500,000			582,000,000			6,800,000			15,600,000


Net asset value per share	$	140.98		$	79.60		$	75.32		$	76.71


	iShares FTSE/Xinhua China 25 Index Fund						iShares MSCI EAFE Index Fund
	Year ended July 31, 2007			Year ended July 31, 2006			Year ended July 31, 2007			Year ended July 31, 2006

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	77,758,164		$	50,847,625		$	949,041,603		$	663,739,560
Net realized gain		1,126,874,263			48,136,877			60,372,220			679,430,810
Net change in unrealized appreciation (depreciation)		1,427,343,795			358,547,348			6,663,284,416			3,521,912,454

Net increase in net assets resulting from operations		2,631,976,222			457,531,850			7,672,698,239			4,865,082,824


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(65,514,203	)		(27,301,474	)		(769,182,031	)		(426,787,928	)

Total distributions to shareholders		(65,514,203	)		(27,301,474	)		(769,182,031	)		(426,787,928	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		2,989,557,517			1,933,830,791			10,201,668,788			8,873,661,857
Cost of shares redeemed		(2,678,572,825	)		(391,601,168	)		(99,448,531	)		(1,712,628,875	)

Net increase in net assets from capital share transactions		310,984,692			1,542,229,623			10,102,220,257			7,161,032,982

INCREASE IN NET ASSETS		2,877,446,711			1,972,459,999			17,005,736,465			11,599,327,878

NET ASSETS
Beginning of year		2,973,411,870			1,000,951,871			29,320,816,735			17,721,488,857

End of year	$	5,850,858,581		$	2,973,411,870		$	46,326,553,200		$	29,320,816,735

Undistributed net investment income included in net assets at end of year	$	52,087,836		$	39,831,408		$	685,879,058		$	497,902,008


SHARES ISSUED AND REDEEMED
Shares sold		28,200,000			27,150,000			136,800,000			146,400,000
Shares redeemed		(24,750,000	)		(5,400,000	)		(1,200,000	)		(28,200,000	)

Net increase in shares outstanding		3,450,000			21,750,000			135,600,000			118,200,000


	iShares MSCI EAFE Growth Index Fund						iShares MSCI EAFE Value Index Fund
	Year ended July 31, 2007			Period from August 1, 2005^a to July 31, 2006			Year ended July 31, 2007			Period from August 1, 2005^ato July 31, 2006

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	7,929,338		$	2,714,386		$	23,464,340		$	6,919,493
Net realized gain		1,471,505			221,471			24,935,964			3,528,693
Net change in unrealized appreciation (depreciation)		73,928,499			9,490,535			92,630,101			8,250,296

Net increase in net assets resulting from operations		83,329,342			12,426,392			141,030,405			18,698,482


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(4,132,532	)		(185,328	)		(11,447,878	)		(406,634	)

Total distributions to shareholders		(4,132,532	)		(185,328	)		(11,447,878	)		(406,634	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		186,093,474			259,573,684			770,306,651			405,595,376
Cost of shares redeemed		–			(24,950,788	)		(56,337,675	)		(70,780,990	)

Net increase in net assets from capital share transactions		186,093,474			234,622,896			713,968,976			334,814,386

INCREASE IN NET ASSETS		265,290,284			246,863,960			843,551,503			353,106,234

NET ASSETS
Beginning of period		246,863,960			–			353,106,234			–

End of period	$	512,154,244		$	246,863,960		$	1,196,657,737		$	353,106,234

Undistributed net investment income included in net assets at end of period	$	6,629,658		$	2,558,228		$	18,741,510		$	6,531,400


SHARES ISSUED AND REDEEMED
Shares sold		2,800,000			4,400,000			10,800,000			6,800,000
Shares redeemed		–			(400,000	)		(800,000	)		(1,200,000	)

Net increase in shares outstanding		2,800,000			4,000,000			10,000,000			5,600,000


	iShares FTSE/Xinhua China 25 Index Fund
	Year ended Jul. 31, 2007			Year ended Jul. 31, 2006			Period from Oct. 5, 2004^ato Jul. 31, 2005

Net asset value, beginning of period	$	78.14		$	61.41		$	53.60


Income from investment operations:
Net investment income		1.78	^b		1.84	^b		0.99
Net realized and unrealized gain^c		62.37			16.14			6.82

Total from investment operations		64.15			17.98			7.81


Less distributions from:
Net investment income		(1.31	)		(1.25	)		–

Total distributions		(1.31	)		(1.25	)		–

Net asset value, end of period	$	140.98		$	78.14		$	61.41


Total return		82.72	%		29.81	%		14.57	%^d


Ratios/Supplemental data:
Net assets, end of period (000s)	$	5,850,859		$	2,973,412		$	1,000,952
Ratio of expenses to average net assets^e		0.74	%		0.74	%		0.78	%
Ratio of net investment income to average net assets^e		1.74	%		2.62	%		2.97	%
Portfolio turnover rate^f		36	%		45	%		13	%


	iShares MSCI EAFE Index Fund
	Year ended Jul. 31, 2007			Year ended Jul. 31, 2006			Year ended Jul. 31, 2005			Year ended Jul. 31, 2004			Year ended Jul. 31, 2003

Net asset value, beginning of year	$	65.68		$	54.00		$	45.49		$	36.88		$	35.41


Income from investment operations:
Net investment income		1.85	^a		1.70	^a		0.97			0.65			0.86
Net realized and unrealized gain^b		13.60			11.09			8.34			8.48			1.24

Total from investment operations		15.45			12.79			9.31			9.13			2.10


Less distributions from:
Net investment income		(1.53	)		(1.11	)		(0.80	)		(0.52	)		(0.63	)

Total distributions		(1.53	)		(1.11	)		(0.80	)		(0.52	)		(0.63	)

Net asset value, end of year	$	79.60		$	65.68		$	54.00		$	45.49		$	36.88


Total return		23.75	%		23.91	%		20.53	%		24.81	%		6.17	%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	46,326,553		$	29,320,817		$	17,721,489		$	8,733,741		$	3,009,772
Ratio of expenses to average net assets		0.34	%		0.35	%		0.36	%		0.35	%		0.35	%
Ratio of net investment income to average net assets		2.48	%		2.77	%		2.57	%		2.34	%		2.31	%
Portfolio turnover rate^c		5	%		7	%		8	%		7	%		8	%


	iShares MSCI EAFE Growth Index Fund
	Year ended Jul. 31, 2007			Period from Aug. 1, 2005^ato Jul. 31, 2006

Net asset value, beginning of period	$	61.72		$	50.88


Income from investment operations:
Net investment income^b		1.35			1.34
Net realized and unrealized gain^c		12.94			9.73

Total from investment operations		14.29			11.07


Less distributions from:
Net investment income		(0.69	)		(0.23	)

Total distributions		(0.69	)		(0.23	)

Net asset value, end of period	$	75.32		$	61.72


Total return		23.28	%		21.80	%^d


Ratios/Supplemental data:
Net assets, end of period (000s)	$	512,154		$	246,864
Ratio of expenses to average net assets^e		0.40	%		0.40	%
Ratio of net investment income to average net assets^e		1.93	%		2.25	%
Portfolio turnover rate^f		28	%		35	%


iShares Index Fund	Undistributed Ordinary Income		Undistributed Long Term Capital Gains		Unrealized Appreciation		Capital and Other Losses			Net Distributable Earnings
FTSE/Xinhua China 25	$	52,087,836	$	–	$	1,857,786,743	$	(3,332,711	)	$	1,906,541,868
MSCI EAFE		804,458,879		–		12,199,758,669		(26,830,160	)		12,977,387,388
MSCI EAFE Growth		6,997,693		90,576		82,755,384		–			89,843,653
MSCI EAFE Value		31,788,617		4,801,512		97,159,850		–			133,749,979


iShares Index Fund	Expiring 2012		Expiring 2013		Expiring 2014		Total
FTSE/Xinhua China 25	$	–	$	–	$	3,332,711	$	3,332,711
MSCI EAFE		26,679,808		150,352		–		26,830,160


iShares Index Fund	Tax Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation			Net Unrealized Appreciation
FTSE/Xinhua China 25	$	5,049,002,991	$	1,863,935,195	$	(6,158,055	)	$	1,857,777,140
MSCI EAFE		35,279,775,944		12,393,670,295		(195,885,359	)		12,197,784,936
MSCI EAFE Growth		433,226,411		90,283,493		(7,542,967	)		82,740,526
MSCI EAFE Value		1,102,164,717		115,049,792		(17,937,050	)		97,112,742


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE		1


2		2007 iSHARES ANNUAL REPORT TO SHAREHOLDERS


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE		3


4		2007 iSHARES ANNUAL REPORT TO SHAREHOLDERS


iShares Index Fund	Investment Advisory Fee

FTSE/Xinhua China 25	0.74	%

MSCI EAFE Growth	0.40

MSCI EAFE Value	0.40


Investment Advisory Fee		Average Daily Net Assets

0.74%		First $6 billion

0.67		Over $6 billion, up to and including $12 billion

0.60		Over $12 billion


Investment Advisory Fee		Average Daily Net Assets

0.35%		First $30 billion

0.32		Over $30 billion, up to and including $60 billion

0.28		Over $60 billion


iShares Index Fund	Securities Lending Agent Fees

FTSE/Xinhua China 25	$	8,527,896

MSCI EAFE		3,645,538

MSCI EAFE Growth		25,291

MSCI EAFE Value		15,593


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		Dividend Income		Net Realized Gain
MSCI EAFE
Barclays PLC	16,388	4,906	173	21,121	$	300,004,443	$	10,959,992	$	265,622
MSCI EAFE Value
Barclays PLC	396	733	7	1,122		15,934,577		420,348		5,112


iShares Index Fund	Purchases		Sales
FTSE/Xinhua China 25	$	1,661,550,864	$	1,601,663,218
MSCI EAFE		2,251,292,749		1,821,549,672
MSCI EAFE Growth		120,957,821		111,065,206
MSCI EAFE Value		232,278,209		166,465,414


iShares Index Fund	In-kind Purchases		In-kind Sales
FTSE/Xinhua China 25	$	2,915,401,162	$	2,660,660,695
MSCI EAFE		10,006,570,792		98,269,698
MSCI EAFE Growth		181,546,837		–
MSCI EAFE Value		704,916,855		46,335,087


iShares Index Fund	Foreign Source Income Earned		Foreign Taxes Paid

MSCI EAFE	$	1,172,490,457	$	93,227,296

MSCI EAFE Growth		10,366,004		792,264

MSCI EAFE Value		29,207,256		2,524,371


iShares Index Fund	Qualified Dividend Income

FTSE/Xinhua China 25	$	40,818,431

MSCI EAFE		769,182,031

MSCI EAFE Growth		4,132,532

MSCI EAFE Value		11,447,878


Premium/Discount Range	Number of Days	Percentage of Total Days
Greater than 4.0% and Less than 4.5%	2	0.32	%
Greater than 3.5% and Less than 4.0%	1	0.16
Greater than 3.0% and Less than 3.5%	1	0.16
Greater than 2.5% and Less than 3.0%	4	0.64
Greater than 2.0% and Less than 2.5%	5	0.80
Greater than 1.5% and Less than 2.0%	17	2.71
Greater than 1.0% and Less than 1.5%	64	10.21
Greater than 0.5% and Less than 1.0%	158	25.20
Between 0.5% and –0.5%	248	39.54
Less than –0.5% and Greater than –1.0%	65	10.37
Less than –1.0% and Greater than –1.5%	30	4.78
Less than –1.5% and Greater than –2.0%	13	2.07
Less than –2.0% and Greater than –2.5%	8	1.28
Less than –2.5% and Greater than –3.0%	4	0.64
Less than –3.0% and Greater than –3.5%	2	0.32
Less than –3.5%	5	0.80

	627	100.00	%


Name, Year of Birth	Position(s), Length of Service	Principal Occupation(s) During Past 5 Years	Other Directorships Held
*Lee T. Kranefuss, 1961	Trustee and Chairman (since 2003).	Chief Executive Officer of the Intermediary Investor and Exchange Traded Products Business of BGI (since 2003); Director of Barclays Global Fund Advisors (since 2005); Director, President and Chief Executive Officer of Barclays Global Investors International, Inc. (since 2005); Director, Chairman and Chief Executive Officer of Barclays Global Investors Services (since 2005); Chief Executive Officer of the Individual Investor Business of BGI (1999-2003).	Director (since 2003) of iShares, Inc.; Trustee (since 2001) of BGlF and MIP; Trustee (since 2007) of BFIT; Director (since 2003) of BGI Cayman Prime Money Market Fund, Ltd.

*John E. Martinez, 1962	Trustee (since 2003).	Co-Chief Executive Officer of Global Index and Markets Group of BGI (2001-2003); Chairman of Barclays Global Investors Services (2000-2003).	Director (since 2003) of iShares, Inc.; Director (since 2005) of Real Estate Equity Exchange.


Name, Year of Birth	Position(s), Length of Service	Principal Occupation(s) During Past 5 Years	Other Directorships Held
Eilleen M. Clavere, 1952	Secretary (since 2007).	Head of Legal Administration of Intermediary Investor Business of BGI (since 2006); Legal Counsel and Vice President of Atlas Funds, Atlas Advisers, Inc. and Atlas Securities, Inc. (2005-2006); Counsel of Kirkpatrick & Lockhart LLP (2001-2005).	None.

Ira P. Shapiro, 1963	Vice President and Chief Legal Officer (since 2007).	Associate General Counsel of BGI (since 2004); First Vice President of Merrill Lynch Investment Managers (1993-2004).	None.

Amy Schioldager, 1962	Executive Vice President (since 2007).	Head of U.S. Indexing of BGI (since 2006); Head of Domestic Equity Portfolio Management of BGI (2001-2006).	None.

H. Michael Williams, 1960	Executive Vice President (since 2007).	Head of Global Index and Markets Group of BGI (since 2006); Global Head of Securities Lending of BGI (2002-2006).	Trustee (since 2007) of BFIT.

Patrick O’Connor, 1967	Vice President (since 2007).	Head of iShares Portfolio Management of BGI (since 2006); Senior Portfolio Manager of BGI (1999-2006).	None.

Lee Sterne, 1965	Vice President (since 2007).	Senior Portfolio Manager of BGI (since 2004); Portfolio Manager of BGI (2001-2004).	None.

Matt Tucker, 1972	Vice President (since 2007).	Head of U.S. Fixed-Income Investment Solutions of BGI (since 2005); Fixed- Income Investment Strategist of BGI (2003-2005); Fixed-Income Portfolio Manager of BGI (1997-2003).	None.


	iShares S&P GSTI^™
	Technology Index Fund			Networking Index Fund			Semiconductor Index Fund			Software Index Fund

ASSETS
Investments, at cost:
Unaffiliated issuers	$	377,630,019		$	241,883,512		$	328,257,735		$	205,033,733
Affiliated issuers (Note 2)		3,015,268			14,187,146			11,958,754			2,488,740

Total cost of investments	$	380,645,287		$	256,070,658		$	340,216,489		$	207,522,473

Investments in securities, at value (including securities on loan^a) (Note 1):
Unaffiliated issuers	$	367,315,501		$	225,980,025		$	302,949,444		$	190,126,154
Affiliated issuers (Note 2)		3,015,268			14,187,146			11,958,754			2,488,740

Total value of investments		370,330,769			240,167,171			314,908,198			192,614,894
Receivables:
Dividends and interest		43,407			16,031			93,485			3,959

Total Assets		370,374,176			240,183,202			315,001,683			192,618,853


LIABILITIES
Payables:
Collateral for securities on loan (Note 5)		2,725,785			13,966,245			11,664,559			2,337,284
Capital shares redeemed		4,101			4,553			–			–
Investment advisory fees (Note 2)		146,103			80,849			126,736			79,499

Total Liabilities		2,875,989			14,051,647			11,791,295			2,416,783


NET ASSETS	$	367,498,187		$	226,131,555		$	303,210,388		$	190,202,070


Net assets consist of:
Paid-in capital	$	388,344,612		$	289,576,120		$	353,179,034		$	210,392,525
Accumulated net realized loss		(10,531,907	)		(47,541,078	)		(24,660,355	)		(5,282,876	)
Net unrealized depreciation		(10,314,518	)		(15,903,487	)		(25,308,291	)		(14,907,579	)

NET ASSETS	$	367,498,187		$	226,131,555		$	303,210,388		$	190,202,070


Shares outstanding^b		6,550,000			6,400,000			4,600,000			4,150,000


Net asset value per share	$	56.11		$	35.33		$	65.92		$	45.83


	iShares S&P GSSI^™			iShares NYSE
	Natural Resources Index Fund			Composite Index Fund			100 Index Fund

ASSETS
Investments, at cost:
Unaffiliated issuers	$	1,504,589,427		$	108,878,876		$	247,314,247
Affiliated issuers (Note 2)		14,457,215			767,262			363,500

Total cost of investments	$	1,519,046,642		$	109,646,138		$	247,677,747

Investments in securities, at value (including securities on loan^a) (Note 1):
Unaffiliated issuers	$	1,865,575,839		$	117,284,260		$	255,098,560
Affiliated issuers (Note 2)		14,457,215			793,183			363,500

Total value of investments		1,880,033,054			118,077,443			255,462,060
Receivables:
Investment securities sold		–			13,003			–
Dividends and interest		895,371			146,747			357,241
Capital shares sold		6,411			–			–

Total Assets		1,880,934,836			118,237,193			255,819,301


LIABILITIES
Payables:
Investment securities purchased		–			7,955			358,009
Due to custodian		–			5,048			–
Collateral for securities on loan (Note 5)		12,479,267			201,529			–
Investment advisory fees (Note 2)		776,523			25,050			56,786

Total Liabilities		13,255,790			239,582			414,795


NET ASSETS	$	1,867,679,046		$	117,997,611		$	255,404,506


Net assets consist of:
Paid-in capital	$	1,520,810,118		$	109,741,746		$	248,193,865
Undistributed net investment income		–			93,831			378,394
Accumulated net realized loss		(14,117,484	)		(269,271	)		(952,066	)
Net unrealized appreciation		360,986,412			8,431,305			7,784,313

NET ASSETS	$	1,867,679,046		$	117,997,611		$	255,404,506


Shares outstanding^b		15,550,000			1,350,000			3,350,000


Net asset value per share	$	120.11		$	87.41		$	76.24


	iShares S&P GSTI^™ Technology Index Fund						iShares S&P GSTI^™ Networking Index Fund
	Year ended July 31, 2007			Year ended July 31, 2006			Year ended July 31, 2007			Year ended July 31, 2006

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income (loss)	$	284,717		$	122,956		$	(485,956	)	$	(789,826	)
Net realized gain (loss)		35,361,751			16,248,166			(7,944,686	)		4,764,830
Net change in unrealized appreciation (depreciation)		32,776,681			(37,980,008	)		56,346,484			(56,067,931	)

Net increase (decrease) in net assets resulting from operations		68,423,149			(21,608,886	)		47,915,842			(52,092,927	)


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(281,985	)		(217,577	)		–			–
Return of capital		(116,401	)		–			–			–

Total distributions to shareholders		(398,386	)		(217,577	)		–			–


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		475,606,798			122,820,443			249,021,810			292,116,819
Cost of shares redeemed		(377,591,377	)		(194,240,812	)		(228,323,892	)		(230,492,029	)

Net increase (decrease) in net assets from capital share transactions		98,015,421			(71,420,369	)		20,697,918			61,624,790

INCREASE (DECREASE) IN NET ASSETS		166,040,184			(93,246,832	)		68,613,760			9,531,863

NET ASSETS
Beginning of year		201,458,003			294,704,835			157,517,795			147,985,932

End of year	$	367,498,187		$	201,458,003		$	226,131,555		$	157,517,795


SHARES ISSUED AND REDEEMED
Shares sold		9,100,000			2,500,000			7,450,000			8,550,000
Shares redeemed		(7,250,000	)		(4,200,000	)		(7,050,000	)		(7,500,000	)

Net increase (decrease) in shares outstanding		1,850,000			(1,700,000	)		400,000			1,050,000


	iShares S&P GSTI^™ Semiconductor Index Fund						iShares S&P GSTI^™ Software Index Fund
	Year ended July 31, 2007			Year ended July 31, 2006			Year ended July 31, 2007			Year ended July 31, 2006

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income (loss)	$	962,529		$	300,331		$	(521,010	)	$	(550,685	)
Net realized gain (loss)		3,755,640			56,846,932			21,107,019			(4,669,025	)
Net change in unrealized appreciation (depreciation)		41,872,219			(89,017,891	)		3,402,542			(5,512,402	)

Net increase (decrease) in net assets resulting from operations		46,590,388			(31,870,628	)		23,988,551			(10,732,112	)


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(962,529	)		(300,331	)		–			–
Return of capital		(69,405	)		(129,193	)		–			–

Total distributions to shareholders		(1,031,934	)		(429,524	)		–			–


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		563,361,788			419,456,784			472,172,671			247,903,295
Cost of shares redeemed		(569,388,021	)		(667,794,134	)		(386,859,411	)		(385,912,331	)

Net increase (decrease) in net assets from capital share transactions		(6,026,233	)		(248,337,350	)		85,313,260			(138,009,036	)

INCREASE (DECREASE) IN NET ASSETS		39,532,221			(280,637,502	)		109,301,811			(148,741,148	)

NET ASSETS
Beginning of year		263,678,167			544,315,669			80,900,259			229,641,407

End of year	$	303,210,388		$	263,678,167		$	190,202,070		$	80,900,259


SHARES ISSUED AND REDEEMED
Shares sold		8,900,000			6,650,000			10,500,000			6,100,000
Shares redeemed		(9,050,000	)		(11,150,000	)		(8,500,000	)		(9,650,000	)

Net increase (decrease) in shares outstanding		(150,000	)		(4,500,000	)		2,000,000			(3,550,000	)


	iShares S&P GSSI^™ Natural Resources Index Fund						iShares NYSE Composite Index Fund
	Year ended July 31, 2007			Year ended July 31, 2006			Year ended July 31, 2007			Year ended July 31, 2006

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	17,103,311		$	13,414,750		$	2,060,824		$	768,216
Net realized gain		166,451,821			126,163,040			7,565,748			4,444
Net change in unrealized appreciation (depreciation)		74,275,458			117,296,207			4,917,546			2,459,829

Net increase in net assets resulting from operations		257,830,590			256,873,997			14,544,118			3,232,489


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(17,216,999	)		(12,876,808	)		(2,083,187	)		(650,906	)
Return of capital		(74,715	)		–			–			–

Total distributions to shareholders		(17,291,714	)		(12,876,808	)		(2,083,187	)		(650,906	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		736,865,560			654,898,497			82,437,231			40,405,675
Cost of shares redeemed		(562,841,466	)		(246,665,878	)		(33,548,345	)		–

Net increase in net assets from capital share transactions		174,024,094			408,232,619			48,888,886			40,405,675

INCREASE IN NET ASSETS		414,562,970			652,229,808			61,349,817			42,987,258

NET ASSETS
Beginning of year		1,453,116,076			800,886,268			56,647,794			13,660,536

End of year	$	1,867,679,046		$	1,453,116,076		$	117,997,611		$	56,647,794

Undistributed net investment income included in net assets at end of year	$	–		$	279,339		$	93,831		$	129,919


SHARES ISSUED AND REDEEMED
Shares sold		6,650,000			7,000,000			1,000,000			550,000
Shares redeemed		(5,400,000	)		(2,600,000	)		(400,000	)		–

Net increase in shares outstanding		1,250,000			4,400,000			600,000			550,000


	iShares NYSE 100 Index Fund
	Year ended July 31, 2007			Year ended July 31, 2006

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	7,358,947		$	1,080,280
Net realized gain		45,807,855			47,306
Net change in unrealized appreciation (depreciation)		(1,471,063	)		7,919,247

Net increase in net assets resulting from operations		51,695,739			9,046,833


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(7,354,788	)		(773,733	)

Total distributions to shareholders		(7,354,788	)		(773,733	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		172,836,575			280,783,091
Cost of shares redeemed		(279,887,723	)		(3,212,892	)

Net increase (decrease) in net assets from capital share transactions		(107,051,148	)		277,570,199

INCREASE (DECREASE) IN NET ASSETS		(62,710,197	)		285,843,299

NET ASSETS
Beginning of year		318,114,703			32,271,404

End of year	$	255,404,506		$	318,114,703

Undistributed net investment income included in net assets at end of year	$	378,394		$	374,670


SHARES ISSUED AND REDEEMED
Shares sold		2,300,000			4,200,000
Shares redeemed		(3,600,000	)		(50,000	)

Net increase (decrease) in shares outstanding		(1,300,000	)		4,150,000


	iShares S&P GSTI^™ Technology Index Fund
	Year ended Jul. 31, 2007			Year ended Jul. 31, 2006			Year ended Jul. 31, 2005			Year ended Jul. 31, 2004			Year ended Jul. 31, 2003

Net asset value, beginning of year	$	42.86		$	46.05		$	41.79		$	38.51		$	30.28


Income from investment operations:
Net investment income (loss)		0.05	^a		0.02	^a		0.35			(0.06	)		(0.04	)
Net realized and unrealized gain (loss)^b		13.27			(3.17	)		4.28			3.34			8.27

Total from investment operations		13.32			(3.15	)		4.63			3.28			8.23


Less distributions from:
Net investment income		(0.05	)		(0.04	)		(0.34	)		–			–
Return of capital		(0.02	)		–			(0.03	)		–			–

Total distributions		(0.07	)		(0.04	)		(0.37	)		–			–

Net asset value, end of year	$	56.11		$	42.86		$	46.05		$	41.79		$	38.51


Total return		31.09	%		(6.85	)%		11.10	%		8.52	%		27.18	%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	367,498		$	201,458		$	294,705		$	185,966		$	103,984
Ratio of expenses to average net assets		0.48	%		0.50	%		0.50	%		0.50	%		0.50	%
Ratio of net investment income (loss) to average net assets		0.09	%		0.04	%		0.81	%		(0.20	)%		(0.18	)%
Portfolio turnover rate^c		20	%		5	%		7	%		5	%		11	%


	iShares S&P GSTI^™ Networking Index Fund
	Year ended Jul. 31, 2007			Year ended Jul. 31, 2006			Year ended Jul. 31, 2005			Year ended Jul. 31, 2004			Year ended Jul. 31, 2003

Net asset value, beginning of year	$	26.25		$	29.90		$	26.97		$	20.75		$	13.09


Income from investment operations:
Net investment loss		(0.08	)^a		(0.10	)^a		(0.08	)		(0.07	)		(0.01	)
Net realized and unrealized gain (loss)^b		9.16			(3.55	)		3.01			6.29			7.67

Total from investment operations		9.08			(3.65	)		2.93			6.22			7.66

Net asset value, end of year	$	35.33		$	26.25		$	29.90		$	26.97		$	20.75


Total return		34.59	%		(12.21	)%		10.86	%		29.98	%		58.52	%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	226,132		$	157,518		$	147,986		$	146,986		$	80,917
Ratio of expenses to average net assets		0.48	%		0.50	%		0.50	%		0.50	%		0.50	%
Ratio of net investment loss to average net assets		(0.25	)%		(0.31	)%		(0.26	)%		(0.31	)%		(0.17	)%
Portfolio turnover rate^c		53	%		32	%		16	%		12	%		26	%