N-CSR

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-09729

iShares Trust

(Exact name of registrant as specified in charter)

c/o: State Street Bank and Trust Company

200 Clarendon Street, Boston, MA 02116

(Address of principal executive offices) (Zip code)

The Corporation Trust Company

1209 Orange Street, Wilmington, DE 19801

(Name and address of agent for service)

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

Date of fiscal year end: July 31, 2009

Date of reporting period: July 31, 2009

Item 1. Reports to Stockholders.

2009 ANNUAL REPORT TO SHAREHOLDERS

iSHARES® S&P SERIES

iSHARES® NYSE SERIES

JULY 31, 2009

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iShares S&P North American Technology Sector Index Fund iShares S&P North American Technology-Multimedia Networking Index Fund iShares S&P North American Technology-Semiconductors Index Fund iShares S&P North American Technology-Software Index Fund iShares S&P North American Natural Resources Sector Index Fund iShares NYSE Composite Index Fund iShares NYSE 100 Index Fund

iSHARES®

iSHARES

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Table of Contents

Management’s Discussions of Fund Performance	1
Shareholder Expenses (Unaudited)	22
Schedules of Investments	24
iShares S&P North American Technology Sector Index Fund	24
iShares S&P North American Technology-Multimedia Networking Index Fund	28
iShares S&P North American Technology-Semiconductors Index Fund	30
iShares S&P North American Technology-Software Index Fund	32
iShares S&P North American Natural Resources Sector Index Fund	34
iShares NYSE Composite Index Fund	37
iShares NYSE 100 Index Fund	56
Financial Statements	59
Financial Highlights	67
Notes to Financial Statements	74
Report of Independent Registered Public Accounting Firm	83
Tax Information (Unaudited)	84
Board Review and Approval of Investment Advisory Contract (Unaudited)	85
Supplemental Information (Unaudited)	88
Trustee and Officer Information (Unaudited)	91
iShares Family of Funds	96

Management’s Discussion of Fund Performance

iSHARES^® S&P NORTH AMERICAN TECHNOLOGY SECTOR INDEX FUND

(TICKER: IGM)

INVESTMENT OBJECTIVE

The iShares S&P North American Technology Sector Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the S&P North American Technology Sector Index^TM (the “Index”). The Index measures the performance of U.S.-traded stocks of technology-related companies in the U.S. and Canada. The Index includes companies in the following categories: producers of sophisticated computer-related devices; communications equipment and internet services; producers of computer and internet software; consultants for information technology; providers of computer services; and semiconductor equipment manufacturers. 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, 2009 (the “reporting period”), the total return for the Fund was (10.91)%, while the total return for the Index was (10.58)%.

MARKET OVERVIEW AND DISCUSSION OF PERFORMANCE

Broad U.S. stock indices declined during the 12-month reporting period ended July 31, 2009 in an environment of ongoing market volatility and changing market sentiment. Weakening economic conditions, a severe credit crunch, and turmoil in the financial sector were among the factors contributing to the declining market environment during the reporting period. The recession that had begun in December 2007 continued, with consumer spending falling and unemployment rates climbing to their highest levels since 1983.

After dipping to multi-year lows in early March 2009, major equity indices rebounded in the final months of the reporting period amid suggestions of a possible economic recovery. Manufacturing levels continued to fall, but declined less in the first quarter of 2009 than in previous quarters. Similarly, unemployment levels grew at a slower pace in the first quarter of 2009 than in prior quarters. An apparent optimism about the federal government’s efforts to stimulate economic activity may have contributed additional market support. Although the market rally helped to mitigate losses somewhat, major indices generally declined by approximately 20% for the entire reporting period.

Performance within the technology sector, as measured by the Index, was negative for the reporting period as technology spending decreased in the weak economic environment. Mirroring the broader market, sector performance improved during the course of the reporting period, which helped mitigate losses for the sector. In addition, select companies within the sector experienced gains attributable to high consumer demand for innovative new products, which may have helped enable the sector to weather the weak economic environment better than the overall market.

Performance was mixed for the Fund’s ten largest holdings as of July 31, 2009. Three of the ten largest holdings delivered positive returns for the reporting period, including Oracle Corp., which produced the most solid gain. Apple Inc., maker of the iPhone^®, also finished the reporting period in positive territory, as did networking company Cisco Systems Inc. Research in Motion Ltd., maker of the Blackberry^® handheld device, posted a significant decline. Wireless communications company QUALCOMM Inc. and semiconductor company Intel Corp., also declined notably.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 1

Management’s Discussion of Fund Performance (Continued)

iSHARES^® S&P NORTH AMERICAN TECHNOLOGY SECTOR INDEX FUND

Performance as of July 31, 2009

Average Annual Total Returns
Year Ended 7/31/09			Five Years Ended 7/31/09			Inception to 7/31/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(10.91)%	(10.83)%	(10.58)%	2.29%	2.30%	2.74%	(2.26)%	(2.26)%	(1.81)%
Cumulative Total Returns
Year Ended 7/31/09			Five Years Ended 7/31/09			Inception to 7/31/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(10.91)%	(10.83)%	(10.58)%	12.00%	12.04%	14.47%	(17.46)%	(17.43)%	(14.19)%

Total returns for the period 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 period(s) indicated. “Cumulative Total Returns” represent the total change in value of an investment over the period(s) 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 primary 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 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 the Market 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 performance shown in the table(s) and chart(s) above 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 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.

2 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® S&P NORTH AMERICAN TECHNOLOGY SECTOR INDEX FUND

PORTFOLIO ALLOCATION As of 7/31/09
Industry	Percentage of Net Assets
Computers	30.25	%
Software	21.13
Telecommunications	15.22
Semiconductors	14.60
Internet	12.19
Commercial Services	3.46
Electronics	2.26
Office & Business Equipment	0.37
Distribution & Wholesale	0.24
Electrical Components & Equipment	0.13
Machinery	0.11
Short-Term and Other Net Assets	0.04
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 7/31/09
Security	Percentage of Net Assets
Microsoft Corp.	8.55	%
International Business Machines Corp.	8.17
Apple Inc.	7.64
Cisco Systems Inc.	6.65
Intel Corp.	5.64
Google Inc. Class A	5.58
Hewlett-Packard Co.	5.42
Oracle Corp.	4.39
QUALCOMM Inc.	4.01
Research in Motion Ltd.	1.97
TOTAL	58.02	%

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 3

Management’s Discussion of Fund Performance

iSHARES^® S&P NORTH AMERICAN TECHNOLOGY-MULTIMEDIA NETWORKING INDEX FUND

(TICKER: IGN)

INVESTMENT OBJECTIVE

The iShares S&P North American Technology-Multimedia 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 North American Technology-Multimedia Networking Index^TM (the “Index”). The Index measures the performance of U.S.-traded stocks of communication equipment companies in the U.S. and Canada. The Index includes companies that are producers of telecom, 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, 2009 (the “reporting period”), the total return for the Fund was (14.12)%, while the total return for the Index was (13.76)%.

MARKET OVERVIEW AND DISCUSSION OF PERFORMANCE

Broad U.S. stock indices declined during the 12-month reporting period ended July 31, 2009 in an environment of ongoing market volatility and changing market sentiment. Weakening economic conditions, a severe credit crunch, and turmoil in the financial sector were among the factors contributing to the declining market environment during the reporting period. The recession that had begun in December 2007 continued, with consumer spending falling and unemployment rates climbing to their highest levels since 1983.

After dipping to multi-year lows in early March 2009, major equity indices rebounded in the final months of the reporting period amid suggestions of a possible economic recovery. Manufacturing levels continued to fall, but declined less in the first quarter of 2009 than in previous quarters. Similarly, unemployment levels grew at a slower pace in the first quarter of 2009 than in prior quarters. An apparent optimism about the federal government’s efforts to stimulate economic activity may have contributed additional market support. Although the market rally helped to mitigate losses somewhat, major indices generally declined by approximately 20% for the entire reporting period.

Performance for networking stocks as a group continued to be negative for the reporting period, as the weak economic environment contributed to a reduction in spending on technology. Conditions improved during the course of the reporting period, however, reducing some of the more significant declines registered early in the period. Overall, networking stocks outperformed the broader market during the period.

Performance was mixed for the Fund’s ten largest holdings as of July 31, 2009. F5 Networks Inc., which markets products that optimize delivery of network-based applications, posted a solid gain. Data storage device company Brocade Communications Systems Inc. also performed well, as did communications equipment maker Tellabs Inc. Networking device companies Cisco Systems Inc. and Juniper Networks Inc. both delivered nearly flat returns. Research in Motion Ltd., maker of the Blackberry^® handheld device, experienced a double-digit decline, as did communications equipment company Harris Corp.

4 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® S&P NORTH AMERICAN TECHNOLOGY-MULTIMEDIA NETWORKING INDEX FUND

Performance as of July 31, 2009

Average Annual Total Returns
Year Ended 7/31/09			Five Years Ended 7/31/09			Inception to 7/31/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(14.12)%	(14.02)%	(13.76)%	(1.67)%	(1.66)%	(1.19)%	(4.63)%	(4.62)%	(4.11)%
Cumulative Total Returns
Year Ended 7/31/09			Five Years Ended 7/31/09			Inception to 7/31/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(14.12)%	(14.02)%	(13.76)%	(8.09)%	(8.02)%	(5.81)%	(31.75)%	(31.70)%	(28.68)%

Total returns for the period 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 period(s) indicated. “Cumulative Total Returns” represent the total change in value of an investment over the period(s) 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 primary 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 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 the Market 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 performance shown in the table(s) and chart(s) above 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 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.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 5

Management’s Discussion of Fund Performance (Continued)

iSHARES^® S&P NORTH AMERICAN TECHNOLOGY-MULTIMEDIA NETWORKING INDEX FUND

PORTFOLIO ALLOCATION As of 7/31/09
Industry	Percentage of Net Assets
Telecommunication Equipment	27.37	%
Networking Products	23.81
Wireless Equipment	17.02
Computers	10.41
Computer – Integrated Systems	7.02
Telecommunication Equipment Fiber Optics	5.62
Internet Infrastructure Software	4.82
Semiconductor Components/ Integrated Circuits	1.43
Internet Infrastructure Equipment	1.31
Satellite Telecommunications	1.14
Short-Term and Other Net Assets	0.05
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 7/31/09
Security	Percentage of Net Assets
Cisco Systems Inc.	8.72	%
QUALCOMM Inc.	7.39
Motorola Inc.	7.17
Research in Motion Ltd.	6.29
Juniper Networks Inc.	5.89
Harris Corp.	5.09
Brocade Communications Systems Inc.	4.96
F5 Networks Inc.	4.82
Tellabs Inc.	4.36
Palm Inc.	4.12
TOTAL	58.81	%

6 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance

iSHARES^® S&P NORTH AMERICAN TECHNOLOGY-SEMICONDUCTORS INDEX FUND

(TICKER: IGW)

INVESTMENT OBJECTIVE

The iShares S&P North American Technology-Semiconductors Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the S&P North American Technology-Semiconductors Index^TM (the “Index”). The Index measures the performance of U.S.-traded stocks of semiconductor companies in the U.S. and Canada. The Index includes companies that are producers of semiconductors and semiconductor 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, 2009 (the “reporting period”), the total return for the Fund was (8.87)%, while the total return for the Index was (8.91)%.

MARKET OVERVIEW AND DISCUSSION OF PERFORMANCE

Broad U.S. stock indices declined during the 12-month reporting period ended July 31, 2009 in an environment of ongoing market volatility and changing market sentiment. Weakening economic conditions, a severe credit crunch, and turmoil in the financial sector were among the factors contributing to the declining market environment during the reporting period. The recession that had begun in December 2007 continued, with consumer spending falling and unemployment rates climbing to their highest levels since 1983.

After dipping to multi-year lows in early March 2009, major equity indices rebounded in the final months of the reporting period amid suggestions of a possible economic recovery. Manufacturing levels continued to fall, but declined less in the first quarter of 2009 than in previous quarters. Similarly, unemployment levels grew at a slower pace in the first quarter of 2009 than in prior quarters. An apparent optimism about the federal government’s efforts to stimulate economic activity may have contributed additional market support. Although the market rally helped to mitigate losses somewhat, major indices generally declined by approximately 20% for the entire reporting period.

The semiconductor industry as a group continued to deliver negative returns for the reporting period as the weak economic environment contributed to a reduction in spending levels on technology by businesses. The share prices of many companies rebounded in the second half of the reporting period, however, mitigating more substantial losses that were suffered early in the period. Overall, semiconductor stocks outperformed the broader market during the period.

Most of the Fund’s ten largest holdings as of July 31, 2009 delivered negative returns for the reporting period, although several holdings delivered sound gains. Broadcom Corp.’s Class A shares posted the strongest results among the ten largest holdings. NVIDIA Corp., manufacturer of visual computing technologies, also logged a solid return. Computer chip manufacturer Texas Instruments Inc., the Fund’s largest holding, registered a modest gain. On the negative side, fabrication equipment maker Applied Materials Inc., programmable logic device producer Altera Corp., and KLA-Tencor Corp., were among holdings whose share prices experienced double-digit declines.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 7

Management’s Discussion of Fund Performance (Continued)

iSHARES^® S&P NORTH AMERICAN TECHNOLOGY-SEMICONDUCTORS INDEX FUND

Performance as of July 31, 2009

Average Annual Total Returns
Year Ended 7/31/09			Five Years Ended 7/31/09			Inception to 7/31/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(8.87)%	(8.75)%	(8.91)%	(3.11)%	(3.08)%	(2.76)%	(5.05)%	(5.04)%	(4.68)%
Cumulative Total Returns
Year Ended 7/31/09			Five Years Ended 7/31/09			Inception to 7/31/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(8.87)%	(8.75)%	(8.91)%	(14.62)%	(14.48)%	(13.06)%	(34.14)%	(34.11)%	(32.06)%

Total returns for the period 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 period(s) indicated. “Cumulative Total Returns” represent the total change in value of an investment over the period(s) 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 primary 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 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 the Market 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 performance shown in the table(s) and chart(s) above 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 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.

8 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® S&P NORTH AMERICAN TECHNOLOGY-SEMICONDUCTORS INDEX FUND

PORTFOLIO ALLOCATION As of 7/31/09
Industry	Percentage of Net Assets
Electronic Components – Semiconductors	62.86	%
Semiconductor Equipment	19.99
Semiconductor Components/ Integrated Circuits	15.01
Networking Products	0.92
Lasers – Systems/Components	0.61
Instruments – Scientific	0.55
Short-Term and Other Net Assets	0.06
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 7/31/09
Security	Percentage of Net Assets
Texas Instruments Inc.	9.01	%
Intel Corp.	8.96
Applied Materials Inc.	8.95
Broadcom Corp. Class A	7.28
Analog Devices Inc.	4.81
NVIDIA Corp.	4.26
Xilinx Inc.	3.60
Linear Technology Corp.	3.60
Altera Corp.	3.31
KLA-Tencor Corp.	3.27
TOTAL	57.05	%

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 9

Management’s Discussion of Fund Performance

iSHARES^® S&P NORTH AMERICAN TECHNOLOGY-SOFTWARE INDEX FUND

(TICKER: IGV)

INVESTMENT OBJECTIVE

The iShares S&P North American Technology-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 North American Technology-Software Index^TM (the “Index”). The Index measures the performance of U.S.-traded stocks of software-related companies in the U.S. and Canada. The Index includes companies that are producers of client/server applications, enterprise software, application software, and PC and home 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, 2009 (the “reporting period”), the total return for the Fund was (14.26)%, while the total return for the Index was (14.15)%.

MARKET OVERVIEW AND DISCUSSION OF PERFORMANCE

Broad U.S. stock indices declined during the 12-month reporting period ended July 31, 2009 in an environment of ongoing market volatility and changing market sentiment. Weakening economic conditions, a severe credit crunch, and turmoil in the financial sector were among the factors contributing to the declining market environment during the reporting period. The recession that had begun in December 2007 continued, with consumer spending falling and unemployment rates climbing to their highest levels since 1983.

After dipping to multi-year lows in early March 2009, major equity indices rebounded in the final months of the reporting period amid suggestions of a possible economic recovery. Manufacturing levels continued to fall, but declined less in the first quarter of 2009 than in previous quarters. Similarly, unemployment levels grew at a slower pace in the first quarter of 2009 than in prior quarters. An apparent optimism about the federal government’s efforts to stimulate economic activity may have contributed additional market support. Although the market rally helped to mitigate losses somewhat, major indices generally declined by approximately 20% for the entire reporting period.

The software sector as a group declined for the reporting period. Within the sector, performance was weighed down by the weak economy, which contributed to a reduction in consumer and business demand for computers and mobile devices. Poor demand for these products, in turn, translated into lower demand for software. Performance for the sector generally rebounded in the second half of the reporting period, however, mitigating losses for the group. Overall, software stocks outperformed the broader market during the period.

Among the Fund’s ten largest holdings as of July 31, 2009, performance was mixed for the reporting period. Four of the ten largest holdings delivered positive returns. Security software provider McAfee Inc. and internet software company Citrix Systems Inc. posted solid gains. Intuit Inc. and Oracle Corp. also logged positive results. Electronic Arts Inc. and Activision Blizzard Inc., which publish online and console games, both experienced double-digit declines in share price, as did Symantec Corp. and Adobe Systems Inc.

10 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® S&P NORTH AMERICAN TECHNOLOGY-SOFTWARE INDEX FUND

Performance as of July 31, 2009

Average Annual Total Returns
Year Ended 7/31/09			Five Years Ended 7/31/09			Inception to 7/31/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(14.26)%	(14.31)%	(14.15)%	3.88%	3.88%	4.34%	(2.24)%	(2.24)%	(1.78)%
Cumulative Total Returns
Year Ended 7/31/09			Five Years Ended 7/31/09			Inception to 7/31/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(14.26)%	(14.31)%	(14.15)%	20.94%	20.94%	23.67%	(16.66)%	(16.66)%	(13.46)%

Total returns for the period 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 period(s) indicated. “Cumulative Total Returns” represent the total change in value of an investment over the period(s) 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 primary 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 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 the Market 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 performance shown in the table(s) and chart(s) above 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 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.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 11

Management’s Discussion of Fund Performance (Continued)

iSHARES^® S&P NORTH AMERICAN TECHNOLOGY-SOFTWARE INDEX FUND

PORTFOLIO ALLOCATION As of 7/31/09
Industry	Percentage of Net Assets
Applications Software	28.35	%
Enterprise Software/Services	24.27
Internet Security	11.74
Entertainment Software	9.03
Electronic Forms	8.94
Computer-Aided Design	5.75
Electronic Design Automation	3.17
Computer – Integrated Systems	2.50
Computer Services	1.48
Electronic Components – Semiconductors	1.34
Internet Infrastructure Software	0.96
Transactional Software	0.93
Data Processing/Management	0.83
Educational Software	0.67
Short-Term and Other Net Assets	0.04
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 7/31/09
Security	Percentage of Net Assets
Adobe Systems Inc.	8.94	%
Microsoft Corp.	8.77
Oracle Corp.	8.68
Symantec Corp.	7.42
Intuit Inc.	5.98
CA Inc.	5.20
Electronic Arts Inc.	4.32
McAfee Inc.	4.32
Activision Blizzard Inc.	4.23
Citrix Systems Inc.	4.02
TOTAL	61.88	%

12 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance

iSHARES^® S&P NORTH AMERICAN NATURAL RESOURCES SECTOR INDEX FUND

(TICKER: IGE)

INVESTMENT OBJECTIVE

The iShares S&P North American Natural Resources Sector Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the S&P North American Natural Resources Sector Index^TM (the “Index”). The Index measures the performance of U.S.-traded stocks of natural resource-related companies in the U.S. and Canada. The Index includes companies in the following categories: producers of oil, gas and consumable fuels, energy equipment and services, metals and mining, manufacturers of paper and forest products, and producers of construction materials, containers and packaging. 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, 2009 (the “reporting period”), the total return for the Fund was (30.55)%, while the total return for the Index was (30.43)%.

MARKET OVERVIEW AND DISCUSSION OF PERFORMANCE

Broad U.S. stock indices declined during the 12-month reporting period ended July 31, 2009 in an environment of ongoing market volatility and changing market sentiment. Weakening economic conditions, a severe credit crunch, and turmoil in the financial sector were among the factors contributing to the declining market environment during the reporting period. The recession that had begun in December 2007 continued, with consumer spending falling and unemployment rates climbing to their highest levels since 1983.

After dipping to multi-year lows in early March 2009, major equity indices rebounded in the final months of the reporting period amid suggestions of a possible economic recovery. Manufacturing levels continued to fall, but declined less in the first quarter of 2009 than in previous quarters. Similarly, unemployment levels grew at a slower pace in the first quarter of 2009 than in prior quarters. An apparent optimism about the federal government’s efforts to stimulate economic activity may have contributed additional market support. Although the market rally helped to mitigate losses somewhat, major indices generally declined by approximately 20% for the entire reporting period.

Natural resources stocks as a group experienced significant declines for the reporting period as the global economic downturn reduced demand for natural resources. Falling oil and natural gas prices adversely affected the share prices of diversified oil companies as well as companies involved in the exploration of oil and gas. In addition, weak global demand for metals caused the prices of many metals and mining companies to fall during the reporting period. As a result, natural resources stocks underperformed the broader market during the period.

All of the Fund’s ten largest holdings as of July 31, 2009 declined for the reporting period. Oil and gas exploration and service companies Schlumberger Ltd. and Suncor Energy Inc. experienced substantial declines amid falling energy prices, as did diversified oil company ConocoPhillips. Apache Corp. and EnCana Corp. also suffered notable double-digit declines. Occidental Petroleum Corp. fared the best on a relative basis, experiencing only a modest decline for the reporting period.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 13

Management’s Discussion of Fund Performance (Continued)

iSHARES^® S&P NORTH AMERICAN NATURAL RESOURCES SECTOR INDEX FUND

Performance as of July 31, 2009

Average Annual Total Returns
Year Ended 7/31/09			Five Years Ended 7/31/09			Inception to 7/31/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(30.55)%	(30.55)%	(30.43)%	10.02%	10.01%	10.52%	9.82%	9.81%	10.29%
Cumulative Total Returns
Year Ended 7/31/09			Five Years Ended 7/31/09			Inception to 7/31/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(30.55)%	(30.55)%	(30.43)%	61.19%	61.15%	64.89%	107.19%	107.06%	114.33%

Total returns for the period 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 period(s) indicated. “Cumulative Total Returns” represent the total change in value of an investment over the period(s) 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 primary 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 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 the Market 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 performance shown in the table(s) and chart(s) above 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 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.

14 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® S&P NORTH AMERICAN NATURAL RESOURCES SECTOR INDEX FUND

PORTFOLIO ALLOCATION As of 7/31/09
Industry	Percentage of Net Assets
Oil & Gas	63.03	%
Mining	15.51
Oil & Gas Services	11.83
Packaging & Containers	2.49
Pipelines	2.29
Coal	2.00
Forest Products & Paper	1.79
Building Materials	0.50
Gas	0.19
Manufacturing	0.19
Transportation	0.07
Short-Term and Other Net Assets	0.11
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 7/31/09
Security	Percentage of Net Assets
Chevron Corp.	7.88	%
Exxon Mobil Corp.	7.58
ConocoPhillips	5.20
Schlumberger Ltd.	5.14
Occidental Petroleum Corp.	4.64
EnCana Corp.	3.23
Canadian Natural Resources Ltd.	2.63
Barrick Gold Corp.	2.44
Suncor Energy Inc.	2.44
Apache Corp.	2.26
TOTAL	43.44	%

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 15

Management’s Discussion of Fund Performance

iSHARES^® NYSE COMPOSITE INDEX FUND

(TICKER: NYC)

INVESTMENT OBJECTIVE

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 New York Stock Exchange (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 that are included in the Index. For the 12-month period ended July 31, 2009 (the “reporting period”), the total return for the Fund was (21.44)%, while the total return for the Index was (21.51)%.

MARKET OVERVIEW AND DISCUSSION OF PERFORMANCE

Broad U.S. stock indices declined during the 12-month reporting period ended July 31, 2009 in an environment of ongoing market volatility and changing market sentiment. Weakening economic conditions, a severe credit crunch, and turmoil in the financial sector were among the factors contributing to the declining market environment during the reporting period. The recession that had begun in December 2007 continued, with consumer spending falling and unemployment rates climbing to their highest levels since 1983.

After dipping to multi-year lows in early March 2009, major equity indices rebounded in the final months of the reporting period amid suggestions of a possible economic recovery. Manufacturing levels continued to fall, but declined less in the first quarter of 2009 than in previous quarters. Similarly, unemployment levels grew at a slower pace in the first quarter of 2009 than in prior quarters. An apparent optimism about the federal government’s efforts to stimulate economic activity may have contributed additional market support. Although the market rally helped to mitigate losses somewhat, major indices generally declined by approximately 20% for the entire reporting period.

Within the Index, every major sector declined for the reporting period. The two largest sector weightings within the Index as of the end of the period, financials and energy, both experienced significant declines. Industrials and materials also declined in the face of a sluggish economic climate. Reflecting the drop in consumer spending during the reporting period, the consumer discretionary sector declined notably. Consumer staples fared the best on a relative basis, logging a more modest decline as consumers focused their spending on non–discretionary items during the weak economic climate.

All of the Fund’s ten largest holdings as of July 31, 2009 delivered negative returns for the reporting period. Industrial conglomerate General Electric Co. and banking company HSBC Holdings PLC posted the most substantial declines, reflecting the weak conditions in the industrials and financials sectors during the reporting period. The share prices of diversified oil companies Chevron Corp., BP PLC, and Exxon Mobil Corp. also fell amid declining energy prices. Financial company JPMorgan Chase & Co. held up the best, experiencing only a modest decline.

16 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® NYSE COMPOSITE INDEX FUND

Performance as of July 31, 2009

Average Annual Total Returns
Year Ended 7/31/09			Five Years Ended 7/31/09			Inception to 7/31/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(21.44)%	(21.55)%	(21.51)%	2.38%	2.36%	2.48%	1.82%	1.79%	1.93%
Cumulative Total Returns
Year Ended 7/31/09			Five Years Ended 7/31/09			Inception to 7/31/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(21.44)%	(21.55)%	(21.51)%	12.50%	12.34%	13.03%	10.11%	9.96%	10.75%

Total returns for the period 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 period(s) indicated. “Cumulative Total Returns” represent the total change in value of an investment over the period(s) 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 primary 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 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 the Market 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 performance shown in the table(s) and chart(s) above 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 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.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 17

Management’s Discussion of Fund Performance (Continued)

iSHARES^® NYSE COMPOSITE INDEX FUND

PORTFOLIO ALLOCATION As of 7/31/09
Sector*	Percentage of Net Assets
Consumer Non-Cyclical	20.37	%
Financial	19.99
Energy	15.78
Industrial	10.00
Communications	9.29
Consumer Cyclical	8.44
Basic Materials	6.58
Technology	4.73
Utilities	3.67
Diversified	0.97
Short-Term and Other Net Assets	0.18
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 7/31/09
Security	Percentage of Net Assets
Exxon Mobil Corp.	2.64	%
HSBC Holdings PLC SP ADR	1.34
Johnson & Johnson	1.28
Procter & Gamble Co. (The)	1.24
International Business Machines Corp.	1.20
AT&T Inc.	1.19
BP PLC SP ADR	1.19
JPMorgan Chase & Co.	1.11
General Electric Co.	1.09
Chevron Corp.	1.06
TOTAL	13.34	%

* Sector classifications used to describe the Fund’s portfolio may differ from sector classifications used to describe the Fund’s corresponding index elsewhere in this report.

18 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance

iSHARES^® NYSE 100 INDEX FUND

(TICKER: NY)

INVESTMENT OBJECTIVE

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 New York Stock Exchange (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 that are included in the Index. For the 12-month period ended July 31, 2009 (the “reporting period”), the total return for the Fund was (20.90)%, while the total return for the Index was (20.85)%.

MARKET OVERVIEW AND DISCUSSION OF PERFORMANCE

Broad U.S. stock indices declined during the 12-month reporting period ended July 31, 2009 in an environment of ongoing market volatility and changing market sentiment. Weakening economic conditions, a severe credit crunch, and turmoil in the financial sector were among the factors contributing to the declining market environment during the reporting period. The recession that had begun in December 2007 continued, with consumer spending falling and unemployment rates climbing to their highest levels since 1983.

After dipping to multi-year lows in early March 2009, major equity indices rebounded in the final months of the reporting period amid suggestions of a possible economic recovery. Manufacturing levels continued to fall, but declined less in the first quarter of 2009 than in previous quarters. Similarly, unemployment levels grew at a slower pace in the first quarter of 2009 than in prior quarters. An apparent optimism about the federal government’s efforts to stimulate economic activity may have contributed additional market support. Although the market rally helped to mitigate losses somewhat, major indices generally declined by approximately 20% for the entire reporting period.

Within the Index, every major sector declined for the reporting period. Two of the Index’s largest sector weightings, financials and energy, both experienced significant declines. Industrials and materials also declined in the face of a sluggish economic climate. Health care stocks as a group performed the best, experiencing only a modest decline for the period, reflecting their defensive nature.

All of the Fund’s ten largest holdings as of July 31, 2009 delivered negative returns for the reporting period. Bank of America Corp. and industrial conglomerate General Electric Co. posted the most substantial declines, reflecting the weak conditions in the financials and industrials sectors during the reporting period. The share prices of diversified oil companies Chevron Corp. and Exxon Mobil Corp. also fell notably amid weak energy prices. Wal-Mart Stores Inc. and The Procter & Gamble Co. also declined. Financial company JPMorgan Chase & Co. fared the best during the period, as it experienced only a modest decline.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 19

Management’s Discussion of Fund Performance (Continued)

iSHARES^® NYSE 100 INDEX FUND

Performance as of July 31, 2009

Average Annual Total Returns
Year Ended 7/31/09			Five Years Ended 7/31/09			Inception to 7/31/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(20.90)%	(21.08)%	(20.85)%	(1.39)%	(1.40)%	(1.24)%	(1.55)%	(1.58)%	(1.39)%
Cumulative Total Returns
Year Ended 7/31/09			Five Years Ended 7/31/09			Inception to 7/31/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(20.90)%	(21.08)%	(20.85)%	(6.77)%	(6.79)%	(6.05)%	(7.99)%	(8.15)%	(7.22)%

Total returns for the period 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 period(s) indicated. “Cumulative Total Returns” represent the total change in value of an investment over the period(s) 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 primary 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 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 the Market 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 performance shown in the table(s) and chart(s) above 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 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.

20 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® NYSE 100 INDEX FUND

PORTFOLIO ALLOCATION As of 7/31/09
Sector*	Percentage of Net Assets
Consumer Non-Cyclical	30.97	%
Energy	17.67
Financial	13.75
Industrial	11.00
Consumer Cyclical	7.61
Communications	7.12
Technology	6.53
Utilities	2.42
Basic Materials	2.09
Diversified	0.72
Short-Term and Other Net Assets	0.12
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 7/31/09
Security	Percentage of Net Assets
Exxon Mobil Corp.	7.08	%
Johnson & Johnson	3.43
Procter & Gamble Co. (The)	3.31
AT&T Inc.	3.17
International Business Machines Corp.	3.17
JPMorgan Chase & Co.	2.94
General Electric Co.	2.88
Chevron Corp.	2.83
Bank of America Corp.	2.30
Wal-Mart Stores Inc.	2.27
TOTAL	33.38	%

* Sector classifications used to describe the Fund’s portfolio may differ from sector classifications used to describe the Fund’s corresponding index elsewhere in this report.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 21

Shareholder Expenses (Unaudited)

iSHARES^® TRUST

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, 2009 to July 31, 2009.

ACTUAL EXPENSES

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

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

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

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

iShares Index Fund	Beginning Account Value (2/1/09)	Ending Account Value (7/31/09)	Annualized Expense Ratio		Expenses Paid During Perioda (2/1/09 to 7/31/09)
S&P North American Technology Sector
Actual	$1,000.00	$1,403.90	0.48	%	$2.86
Hypothetical (5% return before expenses)	1,000.00	1,022.40	0.48		2.41
S&P North American Technology-Multimedia Networking
Actual	1,000.00	1,455.80	0.48		2.92
Hypothetical (5% return before expenses)	1,000.00	1,022.40	0.48		2.41
S&P North American Technology-Semiconductors
Actual	1,000.00	1,538.90	0.48		3.02
Hypothetical (5% return before expenses)	1,000.00	1,022.40	0.48		2.41
S&P North American Technology-Software
Actual	1,000.00	1,354.40	0.48		2.80
Hypothetical (5% return before expenses)	1,000.00	1,022.40	0.48		2.41

22 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Shareholder Expenses (Unaudited) (Continued)

iSHARES^® TRUST

iShares Index Fund	Beginning Account Value (2/1/09)	Ending Account Value (7/31/09)	Annualized Expense Ratio		Expenses Paid During Perioda (2/1/09 to 7/31/09)
S&P North American Natural Resources Sector
Actual	$1,000.00	$1,219.30	0.48	%	$2.64
Hypothetical (5% return before expenses)	1,000.00	1,022.40	0.48		2.41
NYSE Composite
Actual	1,000.00	1,256.90	0.25		1.40
Hypothetical (5% return before expenses)	1,000.00	1,023.60	0.25		1.25
NYSE 100
Actual	1,000.00	1,145.70	0.20		1.06
Hypothetical (5% return before expenses)	1,000.00	1,023.80	0.20		1.00

^a Expenses are calculated using each Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days).

SHAREHOLDER EXPENSES 23

Schedule of Investments

iSHARES^® S&P NORTH AMERICAN TECHNOLOGY SECTOR INDEX FUND

July 31, 2009

Security	Shares	Value
COMMON STOCKS – 99.96%
COMMERCIAL SERVICES – 3.46%
Alliance Data Systems Corp.a,b	10,119	$	516,069
Convergys Corp.a	21,899		234,538
Euronet Worldwide Inc.a	8,606		181,070
Gartner Inc.a	10,115		172,966
Hewitt Associates Inc. Class Aa	14,532		434,943
Lender Processing Services Inc.	14,651		500,771
MasterCard Inc. Class A	12,629		2,450,405
SAIC Inc.a	35,471		641,670
Visa Inc. Class A	62,070		4,063,102
Western Union Co.	122,284		2,137,524
Wright Express Corp.a	6,583		186,167
			11,519,225
COMPUTERS – 30.25%
Affiliated Computer Services Inc. Class Aa	16,970		804,548
Apple Inc.a	155,693		25,438,679
Brocade Communications Systems Inc.a	67,375		529,567
CACI International Inc. Class Aa	5,337		246,569
Cadence Design Systems Inc.a	45,999		271,394
Cognizant Technology Solutions Corp. Class Aa	51,067		1,511,073
Computer Sciences Corp.a	26,516		1,277,276
Dell Inc.a	303,748		4,064,148
Diebold Inc.	11,564		320,554
DST Systems Inc.a	7,222		320,151
Electronics For Imaging Inc.a	7,409		84,463
EMC Corp.a	351,443		5,292,732
FactSet Research Systems Inc.b	7,277		412,606
Hewlett-Packard Co.	416,446		18,032,112
International Business Machines Corp.	230,611		27,195,955
Jack Henry & Associates Inc.	14,628		314,063
Lexmark International Inc. Class Aa	13,886		201,069
Mentor Graphics Corp.a	16,713		115,988
MICROS Systems Inc.a	14,019		383,980
NCR Corp.a	27,662		357,946
NetApp Inc.a	57,895		1,300,322
Palm Inc.a,b	24,270		381,767

Security	Shares	Value
Perot Systems Corp. Class Aa	15,305	$	244,574
Research in Motion Ltd.a	86,432		6,568,832
Riverbed Technology Inc.a	9,460		189,295
SanDisk Corp.a	39,476		703,462
SRA International Inc. Class Aa	7,144		140,737
STEC Inc.a	5,325		181,529
Sun Microsystems Inc.a	130,547		1,197,116
Synaptics Inc.a,b	5,992		143,628
Synopsys Inc.a	25,092		501,338
Syntel Inc.b	2,327		92,103
Teradata Corp.a	30,037		738,009
Western Digital Corp.a	38,958		1,178,479
			100,736,064
DISTRIBUTION & WHOLESALE – 0.24%
Ingram Micro Inc. Class Aa	28,180		473,988
Tech Data Corp.a	8,876		310,039
			784,027
ELECTRICAL COMPONENTS & EQUIPMENT – 0.13%
Molex Inc.	24,165		429,170
			429,170
ELECTRONICS – 2.26%
Agilent Technologies Inc.a	60,087		1,395,220
Amphenol Corp. Class A	29,767		992,729
Arrow Electronics Inc.a	20,832		536,841
Avnet Inc.a	26,284		641,330
AVX Corp.	8,272		90,909
Benchmark Electronics Inc.a	11,690		184,702
Celestica Inc.a	35,417		282,273
Cogent Inc.a	6,397		72,926
Cymer Inc.a,b	5,336		182,545
Dolby Laboratories Inc. Class Aa	8,870		369,258
FEI Co.a	6,705		164,272
FLIR Systems Inc.a	26,138		561,706
Itron Inc.a	6,960		363,103
Jabil Circuit Inc.	37,344		342,071
L-1 Identity Solutions Inc.a	12,922		101,696
National Instruments Corp.	9,779		246,626
Plexus Corp.a	6,704		172,226
Rofin-Sinar Technologies Inc.a	4,880		105,945
Trimble Navigation Ltd.a	20,828		493,832
Vishay Intertechnology Inc.a	33,180		235,910
			7,536,120

24 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® S&P NORTH AMERICAN TECHNOLOGY SECTOR INDEX FUND

July 31, 2009

Security	Shares	Value
INTERNET – 12.19%
Akamai Technologies Inc.a	30,064	$	494,252
Amazon.com Inc.a	56,257		4,824,600
Ariba Inc.a	14,851		156,084
Avocent Corp.a	7,806		121,071
CyberSource Corp.a	11,781		204,283
DealerTrack Holdings Inc.a	7,250		143,767
Digital River Inc.a	6,775		239,496
EarthLink Inc.a	17,946		151,644
eBay Inc.a	188,386		4,003,202
Equinix Inc.a,b	6,572		537,130
Expedia Inc.a,b	36,619		758,379
F5 Networks Inc.a	13,675		507,616
Google Inc. Class Aa	41,905		18,566,010
IAC/InterActiveCorp.a	17,062		314,111
j2 Global Communications Inc.a	7,983		191,512
McAfee Inc.a	27,205		1,212,799
Netflix Inc.a,b	7,145		313,951
NutriSystem Inc.b	5,107		72,673
Priceline.com Inc.a	7,243		938,838
Symantec Corp.a	142,563		2,128,466
TIBCO Software Inc.a	30,733		268,299
ValueClick Inc.a	14,826		170,499
VeriSign Inc.a	33,544		685,639
Websense Inc.a	7,514		111,207
Yahoo! Inc.a	243,608		3,488,467
			40,603,995
MACHINERY – 0.11%
Intermec Inc.a	8,253		112,571
Zebra Technologies Corp. Class Aa	10,386		253,834
			366,405
OFFICE & BUSINESS EQUIPMENT – 0.37%
Xerox Corp.	150,278		1,230,777
			1,230,777
SEMICONDUCTORS – 14.60%
Advanced Micro Devices Inc.a	97,701		357,586
Altera Corp.	51,016		953,489
Amkor Technology Inc.a,b	18,406		115,222
Analog Devices Inc.	50,943		1,394,310
Applied Materials Inc.	232,379		3,206,830
Atmel Corp.a	78,672		328,062
Broadcom Corp. Class Aa	74,558		2,104,772

Security	Shares	Value
Cree Inc.a	15,492	$	496,674
Cypress Semiconductor Corp.a	25,130		266,881
Emulex Corp.a	14,894		135,982
Fairchild Semiconductor International Inc.a	22,177		195,823
FormFactor Inc.a	8,410		193,850
Hittite Microwave Corp.a	3,182		111,752
Integrated Device Technology Inc.a	28,966		196,100
Intel Corp.	974,687		18,762,725
International Rectifier Corp.a	12,811		212,150
Intersil Corp. Class A	21,342		306,685
KLA-Tencor Corp.	29,546		941,926
Lam Research Corp.a	22,003		661,410
Linear Technology Corp.	38,632		1,038,042
LSI Corp.a	112,958		585,122
Maxim Integrated Products Inc.	53,202		942,739
MEMC Electronic Materials Inc.a	38,865		684,801
Micrel Inc.	7,549		59,033
Microchip Technology Inc.	31,799		856,347
Micron Technology Inc.a	147,223		940,755
Microsemi Corp.a	14,484		197,707
MKS Instruments Inc.a	8,860		171,618
National Semiconductor Corp.	33,987		511,844
Novellus Systems Inc.a	17,052		333,708
NVIDIA Corp.a	95,560		1,235,591
ON Semiconductor Corp.a	73,188		534,272
PMC-Sierra Inc.a	38,860		355,569
QLogic Corp.a	20,751		270,801
Rambus Inc.a	18,223		308,515
Rovi Corp.a	14,296		373,983
Semtech Corp.a	10,404		191,434
Silicon Laboratories Inc.a	7,803		334,202
Skyworks Solutions Inc.a	29,572		357,230
Teradyne Inc.a	30,294		238,717
Tessera Technologies Inc.a	8,664		243,372
Texas Instruments Inc.	222,311		5,346,580
Varian Semiconductor Equipment Associates Inc.a	12,762		408,894
Xilinx Inc.	47,885		1,038,626
Zoran Corp.a	8,678		99,971
			48,601,702

SCHEDULES OF INVESTMENTS 25

Schedule of Investments (Continued)

iSHARES^® S&P NORTH AMERICAN TECHNOLOGY SECTOR INDEX FUND

July 31, 2009

Security	Shares	Value
SOFTWARE – 21.13%
Activision Blizzard Inc.a	103,494	$	1,185,006
Acxiom Corp.	11,616		112,094
Adobe Systems Inc.a	91,302		2,960,011
Advent Software Inc.a	2,618		95,426
ANSYS Inc.a	15,256		476,903
Autodesk Inc.a	39,712		866,119
Automatic Data Processing Inc.	87,443		3,257,252
Avid Technology Inc.a	5,510		67,498
Blackboard Inc.a	5,387		182,996
BMC Software Inc.a	32,370		1,101,551
Broadridge Financial Solutions Inc.	24,447		422,200
CA Inc.	68,988		1,458,406
Citrix Systems Inc.a	31,669		1,127,416
Compuware Corp.a	42,227		309,524
Concur Technologies Inc.a	7,508		258,951
Electronic Arts Inc.a	56,508		1,213,227
Fair Isaac Corp.	8,283		158,951
Fidelity National Information Services Inc.	33,262		778,996
Fiserv Inc.a	27,219		1,290,453
Global Payments Inc.	14,000		592,200
Informatica Corp.a	15,217		279,841
Intuit Inc.a	56,408		1,675,318
Lawson Software Inc.a	20,390		121,117
ManTech International Corp. Class Aa	3,578		190,707
Metavante Technologies Inc.a	15,687		483,160
Microsoft Corp.	1,210,394		28,468,467
MicroStrategy Inc. Class Aa	1,641		100,183
Novell Inc.a	61,023		279,485
Nuance Communications Inc.a	37,994		501,521
Omniture Inc.a,b	11,907		162,888
Open Text Corp.a,b	9,284		349,821
Oracle Corp.	660,985		14,627,598
Parametric Technology Corp.a	20,251		261,440
Paychex Inc.	56,089		1,486,359
Pegasystems Inc.	2,351		66,533
Progress Software Corp.a	6,791		153,680
Quest Software Inc.a	11,870		174,964
Red Hat Inc.a	32,872		750,468

Security	Shares	Value
Salesforce.com Inc.a	18,465	$	800,273
Solera Holdings Inc.a	9,857		265,449
Sybase Inc.a	14,481		518,420
SYNNEX Corp.a	3,189		90,631
Take-Two Interactive Software Inc.	14,058		133,832
Total System Services Inc.	34,337		504,067
			70,361,402
TELECOMMUNICATIONS – 15.22%
ADC Telecommunications Inc.a,b	16,370		119,174
ADTRAN Inc.	9,774		236,140
Anixter International Inc.a	5,342		182,803
ARRIS Group Inc.a	21,943		267,266
Atheros Communications Inc.a	10,886		272,150
Ciena Corp.a	15,507		173,058
Cisco Systems Inc.a	1,006,607		22,155,420
CommScope Inc.a	14,245		364,672
Comtech Telecommunications Corp.a	5,051		160,975
Corning Inc.	271,321		4,612,457
EchoStar Corp. Class Aa	6,871		101,279
Harris Corp.	23,031		721,101
Infinera Corp.a	16,232		109,891
InterDigital Inc.a	7,805		231,106
JDS Uniphase Corp.a	39,260		230,064
Juniper Networks Inc.a	91,204		2,383,161
Motorola Inc.	399,611		2,861,215
NeuStar Inc. Class Aa	12,618		286,176
Plantronics Inc.	8,766		207,491
Polycom Inc.a	14,630		347,463
QUALCOMM Inc.	288,847		13,347,620
SAVVIS Inc.a,b	6,858		99,510
Sonus Networks Inc.a	45,677		86,786
Starent Networks Corp.a	5,600		134,288
Sycamore Networks Inc.a	32,060		109,004
Tekeleca	11,870		218,289
Tellabs Inc.a	68,964		399,991
3Com Corp.a	67,605		254,871
			50,673,421
TOTAL COMMON STOCKS
(Cost: $393,879,569)			332,842,308

26 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® S&P NORTH AMERICAN TECHNOLOGY SECTOR INDEX FUND

July 31, 2009

Security	Shares	Value
SHORT-TERM INVESTMENTS – 0.76%
MONEY MARKET FUNDS – 0.76%
Barclays Global Investors Funds Institutional Money Market Fund, SL Agency Shares 0.33%c,d,e	2,077,279	$	2,077,279
Barclays Global Investors Funds Prime Money Market Fund, SL Agency Shares 0.26%c,d,e	287,642		287,642
Barclays Global Investors Funds Treasury Money Market Fund, SL Agency Shares 0.12%c,d	174,549		174,549
			2,539,470
TOTAL SHORT-TERM INVESTMENTS
(Cost: $2,539,470)			2,539,470
TOTAL INVESTMENTS IN SECURITIES – 100.72% (Cost: $396,419,039)			335,381,778
Other Assets, Less Liabilities – (0.72)%			(2,409,155	)
NET ASSETS – 100.00%		$	332,972,623

^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 All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 27

Schedule of Investments

iSHARES^® S&P NORTH AMERICAN TECHNOLOGY-MULTIMEDIA NETWORKING INDEX FUND

July 31, 2009

Security	Shares	Value
COMMON STOCKS – 99.95%
COMPUTER – INTEGRATED SYSTEMS – 7.02%
Brocade Communications Systems Inc.a	1,021,490	$	8,028,911
Riverbed Technology Inc.a	166,377		3,329,204
			11,358,115
COMPUTERS – 10.41%
Palm Inc.a,b	423,789		6,666,201
Research in Motion Ltd.a	133,759		10,165,684
			16,831,885
INTERNET INFRASTRUCTURE EQUIPMENT – 1.31%
Avocent Corp.a	136,211		2,112,632
			2,112,632
INTERNET INFRASTRUCTURE SOFTWARE – 4.82%
F5 Networks Inc.a	210,224		7,803,515
			7,803,515
NETWORKING PRODUCTS – 23.81%
Cisco Systems Inc.a	640,765		14,103,238
Infinera Corp.a	293,306		1,985,681
Juniper Networks Inc.a	364,537		9,525,352
Polycom Inc.a	257,751		6,121,586
Starent Networks Corp.a	95,799		2,297,260
3Com Corp.a	1,191,275		4,491,107
			38,524,224
SATELLITE TELECOMMUNICATIONS – 1.14%
EchoStar Corp. Class Aa	125,358		1,847,777
			1,847,777
SEMICONDUCTOR COMPONENTS/INTEGRATED CIRCUITS – 1.43%
Emulex Corp.a	254,002		2,319,038
			2,319,038
TELECOMMUNICATION EQUIPMENT – 27.37%
ADC Telecommunications Inc.a	297,024		2,162,335
ADTRAN Inc.	168,721		4,076,299
ARRIS Group Inc.a	380,921		4,639,618
CommScope Inc.a	251,228		6,431,437
Comtech Telecommunications Corp.a	86,556		2,758,540
Harris Corp.	262,916		8,231,900
Plantronics Inc.	150,312		3,557,885

Security	Shares	Value
Sonus Networks Inc.a	840,911	$	1,597,731
Tekeleca	204,648		3,763,477
Tellabs Inc.a	1,216,773		7,057,283
			44,276,505
TELECOMMUNICATION EQUIPMENT FIBER OPTICS – 5.62%
Ciena Corp.a,b	280,236		3,127,434
JDS Uniphase Corp.a	677,788		3,971,838
Sycamore Networks Inc.a	584,779		1,988,248
			9,087,520
WIRELESS EQUIPMENT – 17.02%
InterDigital Inc.a	134,387		3,979,199
Motorola Inc.	1,619,604		11,596,365
QUALCOMM Inc.	258,878		11,962,752
			27,538,316
TOTAL COMMON STOCKS
(Cost: $184,854,225)			161,699,527
SHORT-TERM INVESTMENTS – 4.52%
MONEY MARKET FUNDS – 4.52%
Barclays Global Investors Funds Institutional Money Market Fund, SL Agency Shares 0.33%c,d,e	6,317,017		6,317,017
Barclays Global Investors Funds Prime Money Market Fund, SL Agency Shares 0.26%c,d,e	874,720		874,720
Barclays Global Investors Funds Treasury Money Market Fund, SL Agency Shares 0.12%c,d	117,694		117,694
			7,309,431
TOTAL SHORT-TERM INVESTMENTS
(Cost: $7,309,431)			7,309,431

28 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® S&P NORTH AMERICAN TECHNOLOGY-MULTIMEDIA NETWORKING INDEX FUND

July 31, 2009

	Value
TOTAL INVESTMENTS IN SECURITIES – 104.47%
(Cost: $192,163,656)	$	169,008,958
Other Assets, Less Liabilities – (4.47)%		(7,231,258	)
NET ASSETS – 100.00%	$	161,777,700

^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 All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 29

Schedule of Investments

iSHARES^® S&P NORTH AMERICAN TECHNOLOGY-SEMICONDUCTORS INDEX FUND

July 31, 2009

Security	Shares	Value
COMMON STOCKS – 99.94%
ELECTRONIC COMPONENTS – SEMICONDUCTORS – 62.86%
Advanced Micro Devices Inc.a,b	765,505	$	2,801,748
Altera Corp.	400,318		7,481,943
Amkor Technology Inc.a,b	150,180		940,127
Broadcom Corp. Class Aa	583,334		16,467,519
Cree Inc.a	121,450		3,893,687
Fairchild Semiconductor International Inc.a	169,211		1,494,133
Intel Corp.	1,052,654		20,263,590
International Rectifier Corp.a	98,050		1,623,708
Intersil Corp. Class A	166,943		2,398,971
LSI Corp.a	885,026		4,584,435
MEMC Electronic Materials Inc.a	304,860		5,371,633
Microchip Technology Inc.	249,477		6,718,416
Micron Technology Inc.a,b	1,155,150		7,381,409
Microsemi Corp.a	110,884		1,513,567
National Semiconductor Corp.	266,128		4,007,888
NVIDIA Corp.a	745,277		9,636,432
ON Semiconductor Corp.a	573,296		4,185,061
PMC-Sierra Inc.a	304,199		2,783,421
Rambus Inc.a,b	142,672		2,415,437
Semtech Corp.a	83,379		1,534,174
Silicon Laboratories Inc.a,b	61,034		2,614,086
Skyworks Solutions Inc.a	228,692		2,762,599
Texas Instruments Inc.	847,436		20,380,836
Xilinx Inc.	375,918		8,153,661
Zoran Corp.a	70,597		813,277
			142,221,758
INSTRUMENTS – SCIENTIFIC – 0.55%
FEI Co.a	50,583		1,239,284
			1,239,284
LASERS – SYSTEMS/COMPONENTS – 0.61%
Cymer Inc.a,b	40,573		1,388,002
			1,388,002
NETWORKING PRODUCTS – 0.92%
Atheros Communications Inc.a	83,422		2,085,550
			2,085,550
SEMICONDUCTOR COMPONENTS/INTEGRATED CIRCUITS – 15.01%
Analog Devices Inc.	397,420		10,877,385
Atmel Corp.a	615,711		2,567,515

Security	Shares	Value
Cypress Semiconductor Corp.a	195,965	$	2,081,148
Hittite Microwave Corp.a	25,754		904,480
Integrated Device Technology Inc.a	225,851		1,529,011
Linear Technology Corp.	303,251		8,148,354
Maxim Integrated Products Inc.	415,470		7,362,128
Micrel Inc.	62,631		489,774
			33,959,795
SEMICONDUCTOR EQUIPMENT – 19.99%
Applied Materials Inc.	1,467,567		20,252,425
FormFactor Inc.a	67,418		1,553,985
KLA-Tencor Corp.	231,775		7,388,987
Lam Research Corp.a	172,410		5,182,645
MKS Instruments Inc.a	67,369		1,304,938
Novellus Systems Inc.a	133,384		2,610,325
Teradyne Inc.a	236,489		1,863,533
Tessera Technologies Inc.a	66,437		1,866,215
Varian Semiconductor Equipment Associates Inc.a	99,901		3,200,828
			45,223,881
TOTAL COMMON STOCKS
(Cost: $275,453,252)			226,118,270
SHORT-TERM INVESTMENTS – 3.94%
MONEY MARKET FUNDS – 3.94%
Barclays Global Investors Funds Institutional Money Market Fund, SL Agency Shares 0.33%c,d,e	7,733,097		7,733,097
Barclays Global Investors Funds Prime Money Market Fund, SL Agency Shares 0.26%c,d,e	1,070,805		1,070,805
Barclays Global Investors Funds Treasury Money Market Fund, SL Agency Shares 0.12%c,d	107,712		107,712
			8,911,614
TOTAL SHORT-TERM INVESTMENTS
(Cost: $8,911,614)			8,911,614

30 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® S&P NORTH AMERICAN TECHNOLOGY-SEMICONDUCTORS INDEX FUND

July 31, 2009

	Value
TOTAL INVESTMENTS IN SECURITIES – 103.88% (Cost: $284,364,866)	$	235,029,884
Other Assets, Less Liabilities – (3.88)%		(8,779,425	)
NET ASSETS – 100.00%	$	226,250,459

^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 All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 31

Schedule of Investments

iSHARES^® S&P NORTH AMERICAN TECHNOLOGY-SOFTWARE INDEX FUND

July 31, 2009

Security	Shares	Value
COMMON STOCKS – 99.96%
APPLICATIONS SOFTWARE – 28.35%
Citrix Systems Inc.a	339,865	$	12,099,194
Compuware Corp.a	454,451		3,331,126
Intuit Inc.a	606,736		18,020,059
Microsoft Corp.	1,122,614		26,403,881
Nuance Communications Inc.a	406,549		5,366,447
Progress Software Corp.a	75,216		1,702,138
Quest Software Inc.a	115,843		1,707,526
Red Hat Inc.a	354,863		8,101,522
Salesforce.com Inc.a,b	199,462		8,644,683
			85,376,576
COMPUTER – INTEGRATED SYSTEMS – 2.50%
Jack Henry & Associates Inc.	157,352		3,378,347
MICROS Systems Inc.a	150,982		4,135,397
			7,513,744
COMPUTER-AIDED DESIGN – 5.75%
ANSYS Inc.a	164,586		5,144,958
Autodesk Inc.a	428,954		9,355,487
Parametric Technology Corp.a	217,864		2,812,624
			17,313,069
COMPUTER SERVICES – 1.48%
FactSet Research Systems Inc.b	78,432		4,447,094
			4,447,094
DATA PROCESSING/MANAGEMENT – 0.83%
Fair Isaac Corp.	91,210		1,750,320
Pegasystems Inc.	26,765		757,450
			2,507,770
EDUCATIONAL SOFTWARE – 0.67%
Blackboard Inc.a	59,435		2,019,007
			2,019,007
ELECTRONIC COMPONENTS – SEMICONDUCTORS – 1.34%
Rovi Corp.a	153,831		4,024,219
			4,024,219
ELECTRONIC DESIGN AUTOMATION – 3.17%
Cadence Design Systems Inc.a	495,114		2,921,173
Mentor Graphics Corp.a	175,708		1,219,414
Synopsys Inc.a	270,652		5,407,627
			9,548,214

Security	Shares	Value
ELECTRONIC FORMS – 8.94%
Adobe Systems Inc.a	830,868	$	26,936,741
			26,936,741
ENTERPRISE SOFTWARE/SERVICES – 24.27%
Advent Software Inc.a	29,184		1,063,757
Ariba Inc.a	164,048		1,724,144
BMC Software Inc.a	347,294		11,818,415
CA Inc.	740,545		15,655,121
Concur Technologies Inc.a	79,349		2,736,747
Informatica Corp.a	163,691		3,010,278
Lawson Software Inc.a	225,580		1,339,945
MicroStrategy Inc. Class Aa	17,082		1,042,856
Novell Inc.a	648,599		2,970,583
Oracle Corp.	1,181,004		26,135,619
Sybase Inc.a	156,156		5,590,385
			73,087,850
ENTERTAINMENT SOFTWARE – 9.03%
Activision Blizzard Inc.a	1,111,640		12,728,278
Electronic Arts Inc.a	606,527		13,022,135
Take-Two Interactive Software Inc.	151,454		1,441,842
			27,192,255
INTERNET INFRASTRUCTURE SOFTWARE – 0.96%
TIBCO Software Inc.a	329,865		2,879,721
			2,879,721
INTERNET SECURITY – 11.74%
McAfee Inc.a	291,798		13,008,355
Symantec Corp.a	1,496,937		22,349,269
			35,357,624
TRANSACTIONAL SOFTWARE – 0.93%
Solera Holdings Inc.a	104,512		2,814,508
			2,814,508
TOTAL COMMON STOCKS
(Cost: $366,936,420)			301,018,392

32 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® S&P NORTH AMERICAN TECHNOLOGY-SOFTWARE INDEX FUND

July 31, 2009

Security	Shares	Value
SHORT-TERM INVESTMENTS – 2.23%
MONEY MARKET FUNDS – 2.23%
Barclays Global Investors Funds Institutional Money Market Fund, SL Agency Shares 0.33%c,d,e	5,753,068	$	5,753,068
Barclays Global Investors Funds Prime Money Market Fund, SL Agency Shares 0.26%c,d,e	796,630		796,630
Barclays Global Investors Funds Treasury Money Market Fund, SL Agency Shares 0.12%c,d	180,648		180,648
			6,730,346
TOTAL SHORT-TERM INVESTMENTS
(Cost: $6,730,346)			6,730,346
TOTAL INVESTMENTS IN SECURITIES – 102.19% (Cost: $373,666,766)			307,748,738
Other Assets, Less Liabilities – (2.19)%			(6,601,736	)
NET ASSETS – 100.00%		$	301,147,002

^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 All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 33

Schedule of Investments

iSHARES^® S&P NORTH AMERICAN NATURAL RESOURCES SECTOR INDEX FUND

July 31, 2009

Security	Shares	Value
COMMON STOCKS – 99.89%
BUILDING MATERIALS – 0.50%
Eagle Materials Inc.	49,963	$	1,363,990
Martin Marietta Materials Inc.	50,999		4,389,484
Texas Industries Inc.a	31,736		1,443,988
			7,197,462
COAL – 2.00%
Alpha Natural Resources Inc.a,b	81,735		2,722,593
Arch Coal Inc.	181,414		3,158,418
CONSOL Energy Inc.	206,932		7,352,294
Foundation Coal Holdings Inc.	51,192		1,839,328
Massey Energy Co.	97,925		2,604,805
Patriot Coal Corp.a,b	84,620		708,269
Peabody Energy Corp.	306,271		10,140,633
			28,526,340
FOREST PRODUCTS & PAPER – 1.79%
International Paper Co.	495,113		9,313,075
MeadWestvaco Corp.	195,999		3,820,020
Rock-Tenn Co. Class A	43,932		1,975,183
Temple-Inland Inc.	121,870		1,908,484
Weyerhaeuser Co.	242,069		8,482,098
			25,498,860
GAS – 0.19%
Southern Union Co.	142,103		2,753,956
			2,753,956
MANUFACTURING – 0.19%
AptarGroup Inc.	77,598		2,709,722
			2,709,722
MINING – 15.51%
Agnico-Eagle Mines Ltd.	178,422		10,446,608
Alcoa Inc.	1,115,775		13,121,514
Barrick Gold Corp.	1,000,672		34,923,453
Cameco Corp.	449,398		12,425,855
Compass Minerals International Inc.	37,318		1,984,944
Eldorado Gold Corp.b	424,973		4,249,730
Freeport-McMoRan Copper & Gold Inc.	472,423		28,487,107
Goldcorp Inc.	837,700		31,572,913
IAMGOLD Corp.	418,182		4,416,002
Ivanhoe Mines Ltd.a,b	316,757		2,553,061

Security	Shares	Value
Kinross Gold Corp.	797,405	$	15,661,034
Newmont Mining Corp.	561,684		23,225,633
Pan American Silver Corp.b	99,930		1,969,620
Royal Gold Inc.	41,050		1,686,334
Silver Standard Resources Inc.a,b	78,598		1,546,023
Silver Wheaton Corp.a,b	356,694		3,274,451
Teck Resources Ltd. Class Bb	551,280		14,493,151
Titanium Metals Corp.	97,510		816,159
Vulcan Materials Co.	139,491		6,623,033
Yamana Gold Inc.	839,624		7,968,032
			221,444,657
OIL & GAS – 63.03%
Anadarko Petroleum Corp.	572,549		27,596,862
Apache Corp.	384,415		32,271,639
Arena Resources Inc.b	43,725		1,426,747
Atwood Oceanics Inc.b	63,971		1,844,924
Bill Barrett Corp.b	42,688		1,348,514
Cabot Oil & Gas Corp.	118,724		4,170,774
Canadian Natural Resources Ltd.	621,634		37,540,477
Chesapeake Energy Corp.	645,379		13,836,926
Chevron Corp.	1,618,802		112,458,175
Cimarex Energy Co.	95,419		3,414,092
Comstock Resources Inc.b	53,218		2,048,893
Concho Resources Inc.b	57,923		1,778,236
ConocoPhillips	1,698,440		74,238,812
Denbury Resources Inc.b	285,078		4,732,295
Devon Energy Corp.	509,107		29,574,026
Diamond Offshore Drilling Inc.	79,556		7,149,698
EnCana Corp.	860,270		46,153,485
Encore Acquisition Co.b	60,453		2,152,127
ENSCO International Inc.	162,442		6,154,927
EOG Resources Inc.	287,189		21,260,602
EXCO Resources Inc.b	186,173		2,558,017
Exxon Mobil Corp.	1,536,658		108,165,357
Forest Oil Corp.b	127,595		2,149,976
Frontier Oil Corp.	120,018		1,668,250
Goodrich Petroleum Corp.a,b	25,858		663,258
Helmerich & Payne Inc.a	120,791		4,150,379
Hess Corp.	326,570		18,026,664
Holly Corp.	47,064		1,001,051
Marathon Oil Corp.	812,063		26,189,032
Mariner Energy Inc.b	114,939		1,378,119

34 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® S&P NORTH AMERICAN NATURAL RESOURCES SECTOR INDEX FUND

July 31, 2009

Security	Shares	Value
Murphy Oil Corp.	218,459	$	12,714,314
Nabors Industries Ltd.b	324,240		5,518,565
Newfield Exploration Co.b	151,918		5,974,935
Nexen Inc.	598,524		12,455,284
Noble Energy Inc.	198,463		12,130,059
Occidental Petroleum Corp.	929,287		66,295,335
Patterson-UTI Energy Inc.	175,698		2,426,389
Penn Virginia Corp.	52,703		1,012,425
Petro-Canada	556,359		23,016,572
Petrohawk Energy Corp.b	315,674		7,664,565
Pioneer Natural Resources Co.	130,577		3,727,973
Plains Exploration & Production Co.b	139,638		4,000,629
Pride International Inc.b	198,844		4,985,019
Quicksilver Resources Inc.a,b	129,725		1,486,648
Range Resources Corp.	179,336		8,322,984
Rowan Companies Inc.	129,535		2,762,981
SandRidge Energy Inc.a,b	158,669		1,483,555
Southwestern Energy Co.b	394,469		16,342,851
St. Mary Land & Exploration Co.	71,472		1,706,037
Suncor Energy Inc.	1,074,577		34,902,261
Sunoco Inc.	133,909		3,306,213
Talisman Energy Inc.	1,164,800		17,926,272
Tesoro Corp.	158,495		2,074,699
Ultra Petroleum Corp.b	173,284		7,645,290
Unit Corp.b	54,457		1,725,742
Valero Energy Corp.	637,282		11,471,076
W&T Offshore Inc.	36,051		385,385
Whiting Petroleum Corp.b	58,243		2,676,848
XTO Energy Inc.	664,934		26,750,295
			899,993,535
OIL & GAS SERVICES – 11.83%
Baker Hughes Inc.	354,761		14,367,820
BJ Services Co.	334,586		4,744,429
Cameron International Corp.b	248,407		7,757,751
Dresser-Rand Group Inc.b	94,417		2,748,479
Dril-Quip Inc.b	34,423		1,455,749
Exterran Holdings Inc.b	71,532		1,243,941
FMC Technologies Inc.b	141,576		6,158,556
Halliburton Co.	1,029,278		22,736,751
National Oilwell Varco Inc.b	479,995		17,251,020
Oceaneering International Inc.b	62,676		3,191,462

Security	Shares	Value
Oil States International Inc.b	56,789	$	1,540,118
Schlumberger Ltd.	1,371,663		73,383,970
SEACOR Holdings Inc.b	23,129		1,838,293
Smith International Inc.	251,229		6,313,385
Superior Energy Services Inc.b	89,521		1,485,153
Tidewater Inc.	59,226		2,665,170
			168,882,047
PACKAGING & CONTAINERS – 2.49%
Ball Corp.	107,664		5,206,631
Bemis Co. Inc.	123,427		3,248,599
Crown Holdings Inc.b	183,259		4,599,801
Greif Inc. Class A	39,220		2,013,163
Owens-Illinois Inc.b	192,780		6,542,953
Packaging Corp. of America	117,386		2,308,983
Pactiv Corp.b	151,134		3,805,554
Sealed Air Corp.	181,692		3,341,316
Silgan Holdings Inc.	29,266		1,470,909
Sonoco Products Co.	114,319		3,027,167
			35,565,076
PIPELINES – 2.29%
El Paso Corp.	803,034		8,078,522
Spectra Energy Corp.	740,709		13,599,417
Williams Companies Inc. (The)	664,235		11,086,082
			32,764,021
TRANSPORTATION – 0.07%
Overseas Shipholding Group Inc.	27,388		940,778
			940,778
TOTAL COMMON STOCKS
(Cost: $1,663,734,972)			1,426,276,454
SHORT-TERM INVESTMENTS – 0.99%
MONEY MARKET FUNDS – 0.99%
Barclays Global Investors Funds Institutional Money Market Fund, SL Agency Shares 0.33%c,d,e	12,268,099		12,268,099
Barclays Global Investors Funds Prime Money Market Fund, SL Agency Shares 0.26%c,d,e	1,698,768		1,698,768

SCHEDULES OF INVESTMENTS 35

Schedule of Investments (Continued)

iSHARES^® S&P NORTH AMERICAN NATURAL RESOURCES SECTOR INDEX FUND

July 31, 2009

Security	Shares	Value
Barclays Global Investors Funds Treasury Money Market Fund, SL Agency Shares 0.12%c,d	215,542	$	215,542
			14,182,409
TOTAL SHORT-TERM INVESTMENTS
(Cost: $14,182,409)			14,182,409
TOTAL INVESTMENTS IN SECURITIES – 100.88% (Cost: $1,677,917,381)			1,440,458,863
Other Assets, Less Liabilities – (0.88)%			(12,597,566	)
NET ASSETS – 100.00%		$	1,427,861,297

^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 All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

36 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® NYSE COMPOSITE INDEX FUND

July 31, 2009

Security	Shares	Value
COMMON STOCKS – 99.75%
ADVERTISING – 0.10%
Interpublic Group of Companies Inc. (The)a	4,352	$	22,674
Omnicom Group Inc.	2,351		79,934
			102,608
AEROSPACE & DEFENSE – 1.40%
AAR Corp.a,b	336		6,428
Alliant Techsystems Inc.a	77		6,061
Boeing Co. (The)	4,992		214,207
CAE Inc.	2,312		15,213
Curtiss-Wright Corp.	446		14,731
Esterline Technologies Corp.a	309		8,785
GenCorp Inc.a	1,024		2,662
General Dynamics Corp.	2,482		137,478
Goodrich Corp.	993		51,000
L-3 Communications Holdings Inc.	905		68,327
Lockheed Martin Corp.	2,341		175,013
Moog Inc. Class Aa	367		9,894
Northrop Grumman Corp.	2,382		106,190
Orbital Sciences Corp.a	535		7,244
Raytheon Co.	2,941		138,080
Rockwell Collins Inc.	1,281		54,058
Spirit AeroSystems Holdings Inc. Class Aa	784		10,200
Teledyne Technologies Inc.a	277		9,066
Triumph Group Inc.	227		9,066
United Technologies Corp.	6,680		363,860
			1,407,563
AGRICULTURE – 1.69%
Altria Group Inc.	15,939		279,411
Archer-Daniels-Midland Co.	4,475		134,787
Bunge Ltd.	942		65,912
Lorillard Inc.	1,396		102,913
Monsanto Co.	4,108		345,072
Philip Morris International Inc.	14,991		698,581
Reynolds American Inc.	1,370		59,609
Tejon Ranch Co.a	214		5,658
			1,691,943
AIRLINES – 0.16%
AirTran Holdings Inc.a	1,365		9,883

Security	Shares	Value
Alaska Air Group Inc.a	249	$	5,742
AMR Corp.a	2,240		11,984
China Eastern Airlines Corp. Ltd. SP ADRa	174		5,599
China Southern Airlines Co. Ltd. SP ADRa	526		9,352
Continental Airlines Inc.
Class Ba	998		11,148
Delta Air Lines Inc.a	5,384		37,311
LAN Airlines SA SP ADR	1,013		12,389
Southwest Airlines Co.	5,349		41,990
TAM SA SP ADRa	786		9,660
US Airways Group Inc.a	2,266		6,639
			161,697
APPAREL – 0.37%
Carter’s Inc.a	670		18,988
Coach Inc.	2,467		72,999
Gildan Activewear Inc.a	1,200		19,944
Guess? Inc.	474		13,779
Hanesbrands Inc.a	769		15,303
Liz Claiborne Inc.	1,025		3,239
Nike Inc. Class B	2,150		121,776
Phillips-Van Heusen Corp.	465		16,452
Polo Ralph Lauren Corp.	496		31,273
Quiksilver Inc.a	1,282		2,756
VF Corp.	678		43,860
Wolverine World Wide Inc.	517		12,460
			372,829
AUTO MANUFACTURERS – 1.98%
Daimler AGb	6,813		316,464
Ford Motor Co.a	23,724		189,792
Honda Motor Co. Ltd. SP ADR	14,094		452,840
Navistar International Corp.a	428		16,923
Oshkosh Corp.	643		17,650
Tata Motors Ltd. SP ADR	2,420		25,531
Toyota Motor Corp. SP ADR	11,440		963,019
			1,982,219
AUTO PARTS & EQUIPMENT – 0.28%
American Axle & Manufacturing Holdings Inc.	556		1,223
ArvinMeritor Inc.	906		6,559
Autoliv Inc.	469		16,795

SCHEDULES OF INVESTMENTS 37

Schedule of Investments (Continued)

iSHARES^® NYSE COMPOSITE INDEX FUND

July 31, 2009

Security	Shares	Value
BorgWarner Inc.	906	$	30,070
Goodyear Tire & Rubber Co. (The)a	1,905		32,423
Johnson Controls Inc.	4,619		119,540
Magna International Inc. Class A	909		46,323
Modine Manufacturing Co.	367		2,808
Superior Industries International Inc.	284		4,482
Tenneco Inc.a	452		7,309
WABCO Holdings Inc.	701		13,326
			280,858
BANKS – 10.51%
Allied Irish Banks PLC SP ADR	3,525		17,413
Banco Bilbao Vizcaya Argentaria SA SP ADR	29,173		479,604
Banco de Chile SP ADR	222		9,879
Banco Latinoamericano de Comercio Exterior SA Class E	479		6,165
Banco Santander Chile SA SP ADR	267		13,112
Banco Santander SA SP ADR	62,460		903,172
BancorpSouth Inc.	721		16,222
Bank of America Corp.	58,826		870,037
Bank of Hawaii Corp.	413		15,847
Bank of Ireland SP ADRa	1,982		22,714
Bank of Montreal	4,231		212,015
Bank of New York Mellon Corp. (The)	8,836		241,576
Bank of Nova Scotia	7,608		324,938
Barclays PLC SP ADRc	21,053		432,429
BB&T Corp.	4,901		112,135
Canadian Imperial Bank of Commerce	2,920		179,989
City National Corp.	339		13,370
Colonial BancGroup Inc. (The)a,b	1,551		946
Comerica Inc.	1,236		29,466
Community Bank System Inc.	291		5,276
Credicorp Ltd.	366		24,412
Credit Suisse Group PLC SP ADR	8,316		393,929
Cullen/Frost Bankers Inc.	420		20,173
Deutsche Bank AG	4,752		308,405
Discover Financial Services	4,021		47,769
F.N.B. Corp.	1,030		7,993
First BanCorp (Puerto Rico)	672		2,083
First Horizon National Corp.a	1,706		21,871
HDFC Bank Ltd. SP ADR	846		82,713

Security	Shares	Value
HSBC Holdings PLC SP ADR	26,572	$	1,347,200
ICICI Bank Ltd. SP ADR	3,217		100,853
KB Financial Group Inc. SP ADRa	2,710		116,286
KeyCorp	4,565		26,386
Lloyds TSB Group PLC SP ADR	29,133		165,184
M&T Bank Corp.b	699		40,766
Marshall & Ilsley Corp.	2,018		12,189
Mitsubishi UFJ Financial Group Inc. SP ADR	89,925		557,535
Mizuho Financial Group Inc. SP ADRb	52,350		246,045
National Bank of Greece SA SP ADR	22,671		134,439
PNC Financial Services Group Inc. (The)	3,325		121,894
Regions Financial Corp.	8,227		36,363
Royal Bank of Canada	10,337		490,697
Royal Bank of Scotland Group PLC SP ADRa	6,491		96,197
Santander BanCorpa	549		3,327
State Street Corp.	3,747		188,474
SunTrust Banks Inc.	3,497		68,191
Synovus Financial Corp.	2,444		8,578
TCF Financial Corp.	1,040		14,706
Toronto-Dominion Bank (The)	6,505		381,453
U.S. Bancorp	13,378		273,045
Valley National Bancorpb	1,169		14,870
Webster Financial Corp.	590		6,673
Wells Fargo & Co.	34,568		845,533
Westpac Banking Corp. SP ADR	4,509		410,319
Wilmington Trust Corp.	599		6,883
			10,529,739
BEVERAGES – 2.10%
Brown-Forman Corp. Class B NVS	547		24,041
Coca-Cola Co. (The)	16,178		806,312
Coca-Cola Enterprises Inc.	2,430		45,660
Coca-Cola FEMSA SAB de CV SP ADR	268		12,382
Coca-Cola Hellenic Bottling Co. SA SP ADR	1,360		31,443
Compania Cervecerias Unidas SA SP ADR	236		8,064
Constellation Brands Inc. Class Aa	1,620		22,129

38 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® NYSE COMPOSITE INDEX FUND

July 31, 2009

Security	Shares	Value
Cott Corp.a	1,198	$	6,637
Diageo PLC SP ADR	4,761		296,991
Dr Pepper Snapple Group Inc.a	1,970		48,482
Embotelladora Andina SA Class A SP ADR	450		6,795
Embotelladora Andina SA Class B SP ADR	466		8,504
Molson Coors Brewing Co. Class B	1,221		55,201
Pepsi Bottling Group Inc.	987		33,509
PepsiAmericas Inc.	641		17,166
PepsiCo Inc.	11,839		671,863
Vina Concha y Toro SA SP ADR	306		12,730
			2,107,909
BIOTECHNOLOGY – 0.07%
American Oriental Bioengineering Inc.a,b	1,719		10,452
Charles River Laboratories International Inc.a	641		21,198
Enzo Biochem Inc.a	1,481		7,553
Millipore Corp.a	491		34,174
			73,377
BUILDING MATERIALS – 0.35%
Cemex SAB de CV SP ADRa	6,659		62,528
Comfort Systems USA Inc.	718		8,458
CRH PLC SP ADR	5,539		136,979
Eagle Materials Inc.	488		13,322
Lennox International Inc.	452		15,752
Martin Marietta Materials Inc.	328		28,231
Masco Corp.	2,842		39,589
NCI Building Systems Inc.a,b	352		1,387
Owens Corninga	702		12,903
Quanex Building Products Corp.	813		9,667
Simpson Manufacturing Co. Inc.b	302		8,577
Texas Industries Inc.b	268		12,194
			349,587
CHEMICALS – 1.79%
Agrium Inc.	1,219		56,306
Air Products and Chemicals Inc.	1,488		111,005
Airgas Inc.	597		26,614
Albemarle Corp.	755		22,431
Arch Chemicals Inc.	182		4,832
Ashland Inc.	594		19,685

Security	Shares	Value
Cabot Corp.	487	$	8,912
Celanese Corp. Series A	1,128		28,990
CF Industries Holdings Inc.	455		35,918
Cytec Industries Inc.	481		12,073
Dow Chemical Co. (The)	7,942		168,132
E.I. du Pont de Nemours and Co.	6,434		199,004
Eastman Chemical Co.	488		24,234
Ecolab Inc.	1,312		54,461
Ferro Corp.	302		1,501
FMC Corp.	620		30,157
Georgia Gulf Corp.a,b	58		1,003
H.B. Fuller Co.	450		9,072
Huntsman Corp.	1,566		9,615
International Flavors & Fragrances Inc.	610		21,509
Intrepid Potash Inc.a	380		9,599
Lubrizol Corp.	541		31,340
Minerals Technologies Inc.	203		8,824
Mosaic Co. (The)	1,164		60,703
Olin Corp.	522		7,198
OM Group Inc.a	281		9,458
PolyOne Corp.a	1,497		6,422
Potash Corp. of Saskatchewan	2,246		208,900
PPG Industries Inc.	1,220		67,100
Praxair Inc.	2,307		180,361
RPM International Inc.	906		14,460
Sensient Technologies Corp.	517		13,023
Sherwin-Williams Co. (The)	747		43,139
Sinopec Shanghai Petrochemical Co. Ltd. SP ADRa	182		8,326
Sociedad Quimica y Minera de Chile SA Series B SP ADR	817		29,240
Spartech Corp.	955		11,937
Syngenta AG SP ADR	3,638		167,057
Terra Industries Inc.	793		23,124
Valspar Corp. (The)	842		21,319
W.R. Grace & Co.a	712		11,841
Westlake Chemical Corp.	233		5,823
Zep Inc.	439		7,059
			1,791,707
COAL – 0.22%
Alpha Natural Resources Inc.a	586		19,520

SCHEDULES OF INVESTMENTS 39

Schedule of Investments (Continued)

iSHARES^® NYSE COMPOSITE INDEX FUND

July 31, 2009

Security	Shares	Value
Arch Coal Inc.	1,177	$	20,492
CONSOL Energy Inc.	1,430		50,808
Foundation Coal Holdings Inc.	484		17,390
Massey Energy Co.	659		17,529
Peabody Energy Corp.	2,005		66,386
Yanzhou Coal Mining Co. Ltd. SP ADR	1,665		25,791
			217,916
COMMERCIAL SERVICES – 1.51%
Aaron’s Inc.	462		12,691
ABM Industries Inc.	539		11,357
Accenture Ltd. Class A	4,785		167,810
Advance America Cash Advance Centers Inc.	960		5,299
Alliance Data Systems Corp.a	499		25,449
AMN Healthcare Services Inc.a	328		2,388
Arbitron Inc.	383		6,235
Avis Budget Group Inc.a	1,156		9,884
Bowne & Co. Inc.	500		4,015
Brinks Home Security Holdings Inc.a	470		14,015
Chemed Corp.	299		13,186
Consolidated Graphics Inc.a	157		2,873
Convergys Corp.a	924		9,896
Corrections Corp. of Americaa	1,130		19,504
DeVry Inc.	476		23,676
Dollar Thrifty Automotive Group Inc.a	587		9,715
Equifax Inc.	1,091		28,421
FTI Consulting Inc.a	412		22,425
Gartner Inc.a	641		10,961
GEO Group Inc. (The)a	700		12,586
H&R Block Inc.	2,780		46,398
HealthSpring Inc.a	526		6,643
Hertz Global Holdings Inc.a,b	1,849		17,455
Hewitt Associates Inc. Class Aa	725		21,699
Hillenbrand Inc.	739		13,391
Interactive Data Corp.	430		9,782
Iron Mountain Inc.a	1,537		44,896
ITT Educational Services Inc.a	303		29,497
Jackson Hewitt Tax Service Inc.	234		1,416
Korn/Ferry Internationala	578		8,040
Landauer Inc.	150		10,038
Lender Processing Services Inc.	770		26,319
Live Nation Inc.a	1,044		6,097

Security	Shares	Value
Manpower Inc.	573	$	27,475
MasterCard Inc. Class A	626		121,463
MAXIMUS Inc.	104		4,432
McKesson Corp.	2,083		106,545
Midas Inc.a	355		3,504
Monster Worldwide Inc.a	1,106		14,411
Moody’s Corp.	1,417		33,640
New Oriental Education & Technology Group Inc. SP ADRa	306		22,491
PHH Corp.a	442		8,102
Pre-Paid Legal Services Inc.a	112		5,462
Quanta Services Inc.a	1,592		37,110
R.R. Donnelley & Sons Co.	1,658		23,046
Robert Half International Inc.	1,149		28,484
Rollins Inc.	690		12,648
SAIC Inc.a	1,687		30,518
Service Corp. International	2,335		14,757
Sotheby’s	575		8,665
Spherion Corp.a	1,245		6,847
TrueBlue Inc.a	569		7,226
United Rentals Inc.a	23		172
Viad Corp.	182		3,225
Visa Inc. Class A	3,422		224,004
Watson Wyatt Worldwide Inc. Class A	420		15,683
Weight Watchers International Inc.	339		9,451
Western Union Co.	5,344		93,413
			1,516,831
COMPUTERS – 2.58%
Affiliated Computer Services Inc. Class Aa	710		33,661
CGI Group Inc. Class Aa	2,630		26,800
CIBER Inc.a	820		2,714
Computer Sciences Corp.a	1,252		60,309
Diebold Inc.	678		18,794
DST Systems Inc.a	349		15,471
EMC Corp.a	15,378		231,593
FactSet Research Systems Inc.	387		21,943
Hewlett-Packard Co.	18,682		808,931
IHS Inc. Class Aa	424		21,175
International Business Machines Corp.	10,169		1,199,230

40 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® NYSE COMPOSITE INDEX FUND

July 31, 2009

Security	Shares	Value
NCR Corp.a	1,504	$	19,462
Perot Systems Corp. Class Aa	1,062		16,971
Quantum Corp.a	4,322		3,976
Teradata Corp.a	1,504		36,953
Tyler Technologies Inc.a	607		9,348
Unisys Corp.a	4,194		7,507
Western Digital Corp.a	1,710		51,727
			2,586,565
COSMETICS & PERSONAL CARE – 1.65%
Avon Products Inc.	3,353		108,570
Colgate-Palmolive Co.	3,762		272,519
Estee Lauder Companies Inc. (The) Class A	925		33,707
Procter & Gamble Co. (The)	22,406		1,243,757
			1,658,553
DISTRIBUTION & WHOLESALE – 0.17%
Corporate Express NV SP ADRd	1,296		16,996
Genuine Parts Co.	1,235		43,744
Ingram Micro Inc. Class Aa	1,235		20,773
Owens & Minor Inc.	422		18,695
W.W. Grainger Inc.	485		43,606
Watsco Inc.	284		14,899
WESCO International Inc.a	448		11,061
			169,774
DIVERSIFIED FINANCIAL SERVICES – 3.89%
Affiliated Managers Group Inc.a	322		21,258
American Express Co.	8,037		227,688
Ameriprise Financial Inc.	1,834		50,985
BlackRock Inc.	169		32,201
Capital One Financial Corp.	3,541		108,709
CIT Group Inc.	2,978		2,591
Citigroup Inc.	78,323		248,284
Doral Financial Corp.a,b	413		896
Eaton Vance Corp.	986		28,219
Federal Home Loan Mortgage Corp.a,b	8,200		5,084
Federal National Mortgage Associationb	10,064		5,837
Federated Investors Inc. Class B	752		19,499
Financial Federal Corp.	410		8,315
First Marblehead Corp. (The)a	2,246		4,110
Franklin Resources Inc.	1,231		109,165

Security	Shares	Value
GAMCO Investors Inc. Class A	65	$	2,967
Goldman Sachs Group Inc. (The)	3,280		535,624
IntercontinentalExchange Inc.a	594		55,872
Invesco Ltd.	3,193		63,062
Investment Technology Group Inc.a	368		8,225
Janus Capital Group Inc.	1,327		18,127
Jefferies Group Inc.a,b	1,133		25,900
JPMorgan Chase & Co.	28,807		1,113,391
Lazard Ltd. Class A	662		24,487
Legg Mason Inc.	1,045		29,406
Morgan Stanley	9,296		264,936
National Financial Partners Corp.	529		3,967
Nomura Holdings Inc. SP ADR	19,002		167,408
NYSE Euronext Inc.	1,956		52,714
ORIX Corp. SP ADR	1,493		48,761
Petrobras Energia Participaciones SA SP ADR	700		4,858
Raymond James Financial Inc.	820		16,826
Ritchie Bros. Auctioneers Inc.	885		21,240
Shinhan Financial Group Co. Ltd. SP ADR	1,586		106,706
SLM Corp.a	3,767		33,489
Stifel Financial Corp.a	298		14,879
Student Loan Corp. (The)	37		1,663
SWS Group Inc.	382		5,256
Teton Advisors Inc.d	2		–
UBS AGa	24,273		357,784
Waddell & Reed Financial Inc. Class A	847		24,029
Woori Finance Holdings Co. Ltd. SP ADRa	574		20,004
			3,894,422
ELECTRIC – 3.16%
AES Corp. (The)a	5,480		70,089
Allegheny Energy Inc.	1,369		34,512
ALLETE Inc.	313		10,010
Alliant Energy Corp.	816		21,347
Ameren Corp.	1,611		40,968
American Electric Power Co. Inc.	3,101		96,007
Avista Corp.	601		11,131
Black Hills Corp.	301		7,829
Calpine Corp.a	2,885		37,159

SCHEDULES OF INVESTMENTS 41

Schedule of Investments (Continued)

iSHARES^® NYSE COMPOSITE INDEX FUND

July 31, 2009

Security	Shares	Value
CenterPoint Energy Inc.	2,497	$	30,089
Central Vermont Public Service Corp.	587		10,824
CH Energy Group Inc.	282		13,956
Cleco Corp.	603		14,285
CMS Energy Corp.	1,806		23,370
Consolidated Edison Inc.	2,077		81,751
Constellation Energy Group Inc.	1,393		39,979
Dominion Resources Inc.	4,373		147,807
DPL Inc.b	999		23,926
DTE Energy Co.	1,192		41,076
Duke Energy Corp.	9,685		149,924
Dynegy Inc. Class Aa	3,988		8,016
Edison International	2,265		73,205
El Paso Electric Co.a	716		10,819
Empire District Electric Co. (The)	784		14,386
Empresa Nacional de Electricidad SA SP ADR	939		46,293
Enersis SA SP ADR	2,168		41,604
Entergy Corp.	1,439		115,595
Exelon Corp.	5,060		257,352
FirstEnergy Corp.	2,288		94,266
FPL Group Inc.	2,885		163,493
Great Plains Energy Inc.	1,167		18,590
Hawaiian Electric Industries Inc.	792		14,153
Huaneng Power International Inc. SP ADR	640		20,006
IDACORP Inc.	452		12,529
Integrys Energy Group Inc.	604		20,403
Korea Electric Power Corp. SP ADRa	3,742		50,031
MDU Resources Group Inc.	1,356		27,296
Mirant Corp.a	1,251		22,593
National Grid PLC SP ADR	3,909		183,019
Northeast Utilities	1,277		29,384
NRG Energy Inc.a	1,940		52,787
NSTAR	797		25,584
NV Energy Inc.	1,880		21,620
OGE Energy Corp.	837		25,194
Pepco Holdings Inc.	1,622		23,324
PG&E Corp.	2,751		111,058
Pinnacle West Capital Corp.	917		29,307
PNM Resources Inc.	749		9,138
PPL Corp.	2,861		96,673

Security	Shares	Value
Progress Energy Inc.	2,010	$	79,274
Public Service Enterprise Group Inc.	3,907		126,782
RRI Energy Inc.a	2,979		15,938
SCANA Corp.	801		28,315
Southern Co.	5,932		186,265
TECO Energy Inc.	1,467		19,790
TransAlta Corp.	1,737		34,532
UIL Holdings Corp.	334		8,150
UniSource Energy Corp.	464		12,806
Westar Energy Inc.	982		19,316
Wisconsin Energy Corp.	911		39,146
Xcel Energy Inc.	3,528		70,348
			3,164,419
ELECTRICAL COMPONENTS & EQUIPMENT – 0.40%
AMETEK Inc.	945		30,580
Belden Inc.	376		6,595
C&D Technologies Inc.a,b	1,402		2,804
Emerson Electric Co.	5,693		207,111
Energizer Holdings Inc.a	563		36,066
General Cable Corp.a	507		19,656
Hitachi Ltd. SP ADR	2,562		85,725
Hubbell Inc. Class B	376		14,032
			402,569
ELECTRONICS – 1.01%
Advantest Corp. SP ADR	1,370		29,893
Agilent Technologies Inc.a	2,860		66,409
Amphenol Corp. Class A	1,360		45,356
Arrow Electronics Inc.a	1,072		27,625
AU Optronics Corp. SP ADRa	6,318		70,383
Avnet Inc.a	1,134		27,670
AVX Corp.	638		7,012
Brady Corp. Class A	376		11,058
Celestica Inc.a	1,653		13,174
Checkpoint Systems Inc.a	705		12,218
CTS Corp.	1,109		9,349
Jabil Circuit Inc.	2,000		18,320
Koninklijke Philips Electronics NV NYS	7,544		171,701
Kyocera Corp. SP ADR	1,460		117,048
LG Display Co. Ltd. SP ADR	3,363		48,595
Mettler-Toledo International Inc.a	274		23,032
Park Electrochemical Corp.	262		6,123

42 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® NYSE COMPOSITE INDEX FUND

July 31, 2009

Security	Shares	Value
PerkinElmer Inc.	906	$	15,973
Technitrol Inc.	429		3,115
Thermo Fisher Scientific Inc.a	3,251		147,205
Thomas & Betts Corp.a	450		11,988
Tyco Electronics Ltd.	3,520		75,574
Vishay Intertechnology Inc.a	1,936		13,765
Waters Corp.a	747		37,537
Watts WaterTechnologies Inc. Class A	12		316
			1,010,439
ENERGY – ALTERNATE SOURCES – 0.06%
Covanta Holding Corp.a	1,070		18,072
Headwaters Inc.a	916		2,812
LDK Solar Co. Ltd. SP ADRa,b	696		7,614
Suntech Power Holdings Co. Ltd. SP ADRa,b	1,081		19,880
Yingli Green Energy Holding Co. Ltd. SP ADRa,b	1,076		14,279
			62,657
ENGINEERING & CONSTRUCTION – 0.64%
ABB Ltd. SP ADR	17,960		328,309
AECOM Technology Corp.a	781		25,304
Dycom Industries Inc.a	556		7,078
EMCOR Group Inc.a	601		14,496
Empresas ICA Sociedad Controladora SA de CV SP ADRa	1,111		8,244
Fluor Corp.	1,444		76,243
Granite Construction Inc.	288		9,757
Grupo Aeroportuario del Sureste SA de CV Series B SP ADR	224		9,941
Jacobs Engineering Group Inc.a	976		39,996
KBR Inc.	1,245		26,382
McDermott International Inc.a	1,823		35,621
Shaw Group Inc. (The)a	745		21,933
URS Corp.a	741		37,495
			640,799
ENTERTAINMENT – 0.11%
Bally Technologies Inc.a	596		21,581
International Game Technology	2,432		48,032
Pinnacle Entertainment Inc.a	873		8,756
Regal Entertainment Group Class A	658		8,186
Speedway Motorsports Inc.	229		3,655

Security	Shares	Value
Vail Resorts Inc.a	301	$	8,612
Warner Music Group Corp.a	1,084		6,092
			104,914
ENVIRONMENTAL CONTROL – 0.22%
Calgon Carbon Corp.a	745		9,439
Mine Safety Appliances Co.	263		7,388
Nalco Holding Co.	1,007		17,814
Republic Services Inc.	2,371		63,069
Waste Connections Inc.a	709		20,001
Waste Management Inc.	3,821		107,408
			225,119
FOOD – 2.14%
Cadbury PLC SP ADR	2,625		103,766
Campbell Soup Co.	1,674		51,944
ConAgra Foods Inc.	3,547		69,628
Corn Products International Inc.	703		19,684
Cosan Ltd. Class Aa	1,793		12,049
Dean Foods Co.a	1,443		30,577
Del Monte Foods Co.	1,541		14,886
Flowers Foods Inc.	786		18,573
General Mills Inc.	2,342		137,967
Gruma SAB de CV SP ADRa	264		1,521
H.J. Heinz Co.	2,441		93,881
Hershey Co. (The)	1,235		49,338
Hormel Foods Corp.	567		20,361
J.M. Smucker Co. (The)	890		44,527
Kellogg Co.	1,847		87,732
Kraft Foods Inc. Class A	10,381		294,198
Kroger Co. (The)	4,624		98,861
McCormick & Co. Inc. NVS	943		30,383
Ralcorp Holdings Inc.a	481		30,548
Ruddick Corp.	479		11,256
Safeway Inc.	2,879		54,499
Sara Lee Corp.	4,984		53,030
Smithfield Foods Inc.a,b	1,126		15,257
SUPERVALU Inc.	1,728		25,626
Sysco Corp.	4,440		105,494
Tootsie Roll Industries Inc.	308		7,438
TreeHouse Foods Inc.a	347		11,260
Tyson Foods Inc. Class A	2,403		27,466
Unilever NV NYS	12,032		327,270
Unilever PLC SP ADR	10,169		267,953

SCHEDULES OF INVESTMENTS 43

Schedule of Investments (Continued)

iSHARES^® NYSE COMPOSITE INDEX FUND

July 31, 2009

Security	Shares	Value
Weis Markets Inc.	178	$	5,886
Wimm-Bill-Dann Foods OJSC SP ADRa	309		21,061
			2,143,920
FOREST PRODUCTS & PAPER – 0.29%
Buckeye Technologies Inc.a	264		1,676
Clearwater Paper Corp.a	149		5,970
Domtar Corp.a	538		10,200
International Paper Co.	3,037		57,126
MeadWestvaco Corp.	1,187		23,135
Neenah Paper Inc.	577		5,655
P.H. Glatfelter Co.	724		7,493
Plum Creek Timber Co. Inc.	1,261		39,444
Potlatch Corp.	519		15,347
Rayonier Inc.	674		26,279
Rock-Tenn Co. Class A	321		14,432
Sappi Ltd. SP ADR	3,173		10,249
Schweitzer-Mauduit International Inc.	212		6,932
Temple-Inland Inc.	827		12,951
Weyerhaeuser Co.	1,550		54,312
			291,201
GAS – 0.33%
AGL Resources Inc.	599		20,138
Atmos Energy Corp.	743		20,180
Energen Corp.	522		21,569
Laclede Group Inc. (The)	261		8,762
New Jersey Resources Corp.	432		16,675
Nicor Inc.	471		17,163
NiSource Inc.	2,034		26,218
Northwest Natural Gas Co.	219		9,776
Piedmont Natural Gas Co.	522		12,852
Sempra Energy	1,753		91,910
South Jersey Industries Inc.	248		9,146
Southern Union Co.	837		16,221
Southwest Gas Corp.	450		10,899
UGI Corp.	752		19,883
Vectren Corp.	604		14,834
WGL Holdings Inc.	376		12,453
			328,679
HAND & MACHINE TOOLS – 0.16%
Baldor Electric Co.	367		9,454
Black & Decker Corp. (The)	534		20,078
Kennametal Inc.	522		11,129
Nidec Corp. SP ADRb	3,980		71,441

Security	Shares	Value
Regal Beloit Corp.	259	$	12,007
Snap-On Inc.	413		14,715
Stanley Works (The)	641		25,736
			164,560
HEALTH CARE – PRODUCTS – 3.03%
Alcon Inc.	586		74,774
Baxter International Inc.	4,582		258,287
Beckman Coulter Inc.	487		30,676
Becton, Dickinson and Co.	1,735		113,035
Boston Scientific Corp.a	11,782		126,539
C.R. Bard Inc.	624		45,908
Cantel Medical Corp.a	466		7,214
Cooper Companies Inc. (The)	409		11,223
Covidien PLC	3,907		147,724
Edwards Lifesciences Corp.a	450		29,434
Fresenius Medical Care AG & Co. KGaA SP ADR	1,486		68,193
Haemonetics Corp.a	263		15,520
Hill-Rom Holdings Inc.	630		10,798
Invacare Corp.	420		8,568
Inverness Medical Innovations Inc.a	739		24,867
Johnson & Johnson	21,033		1,280,699
Kinetic Concepts Inc.a	499		15,778
Luxottica Group SpA SP ADRa	1,189		29,820
Medtronic Inc.	8,495		300,893
Mindray Medical International Ltd. SP ADR	798		23,717
ResMed Inc.a	701		28,741
Smith & Nephew PLC SP ADR	1,362		54,003
St. Jude Medical Inc.a	2,656		100,158
Steris Corp.	522		14,658
Stryker Corp.	2,296		89,268
Symmetry Medical Inc.a	438		3,749
Varian Medical Systems Inc.a	1,002		35,341
West Pharmaceutical Services Inc.	408		14,892
Zimmer Holdings Inc.a	1,598		74,467
			3,038,944
HEALTH CARE – SERVICES – 0.93%
Aetna Inc.	3,416		92,130
Assisted Living Concepts Inc. Class Aa	229		3,298
Centene Corp.a	444		8,574
Community Health Systems Inc.a	781		22,118

44 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® NYSE COMPOSITE INDEX FUND

July 31, 2009

Security	Shares	Value
Covance Inc.a	505	$	27,851
Coventry Health Care Inc.a	1,261		29,003
DaVita Inc.a	781		38,816
Health Management Associates Inc. Class Aa	2,254		13,592
Health Net Inc.a	862		11,663
HealthSouth Corp.a	744		10,714
Humana Inc.a	1,338		43,953
Laboratory Corp. of America Holdingsa	840		56,440
MDS Inc.a	36		228
MEDNAX Inc.a	432		20,023
Molina Healthcare Inc.a	163		3,676
Quest Diagnostics Inc.	1,170		63,905
Sunrise Senior Living Inc.a	478		1,119
Tenet Healthcare Corp.a	3,540		13,983
UnitedHealth Group Inc.	9,061		254,252
Universal Health Services Inc. Class B	399		22,188
WellPoint Inc.a	3,718		195,716
			933,242
HOLDING COMPANIES – DIVERSIFIED – 0.89%
Berkshire Hathaway Inc. Class Ba	254		807,847
Leucadia National Corp.a	1,378		33,761
Tomkins PLC SP ADR	1,872		21,959
Walter Energy Inc.	486		23,989
			887,556
HOME BUILDERS – 0.14%
Centex Corp.a	916		9,994
Champion Enterprises Inc.a	1,623		763
D.R. Horton Inc.	2,191		25,394
KB Home	583		9,730
Lennar Corp. Class A	856		10,135
NVR Inc.a	41		24,647
Pulte Homes Inc.	1,650		18,760
Thor Industries Inc.b	454		10,855
Toll Brothers Inc.a	1,224		23,941
Winnebago Industries Inc.	447		4,702
			138,921
HOME FURNISHINGS – 0.52%
Furniture Brands International Inc.	669		2,683
Harman International Industries Inc.	522		12,883

Security	Shares	Value
Panasonic Corp. SP ADR	16,167	$	255,600
Sony Corp. SP ADR	7,543		210,902
Thomson SA SP ADRa	2,573		3,345
Whirlpool Corp.	579		33,055
			518,468
HOUSEHOLD PRODUCTS & WARES – 0.42%
ACCO Brands Corp.a	1,380		6,031
American Greetings Corp. Class A	487		7,680
Avery Dennison Corp.	647		17,294
Blyth Inc.	95		4,031
Church & Dwight Co. Inc.	540		31,849
Clorox Co. (The)	1,049		63,999
Ennis Inc.	376		5,538
Fortune Brands Inc.	1,155		45,703
Jarden Corp.a	686		16,910
Kimberly-Clark Corp.	3,186		186,222
Scotts Miracle-Gro Co. (The) Class A	379		14,800
Tupperware Brands Corp.	606		20,646
			420,703
HOUSEWARES – 0.04%
Newell Rubbermaid Inc.	2,145		27,606
Toro Co. (The)	376		13,032
			40,638
INSURANCE – 4.04%
ACE Ltd.	2,562		125,692
Aegon NV SP ADR	11,036		81,777
Aflac Inc.	3,618		136,977
Alleghany Corp.a	50		13,525
Allianz SE SP ADRb	35,081		347,653
Allstate Corp. (The)	4,125		111,004
Ambac Financial Group Inc.b	2,484		1,863
American Financial Group Inc.	676		16,488
American International Group Inc.b	978		12,851
Aon Corp.	1,811		71,444
Arthur J. Gallagher & Co.	715		16,373
Aspen Insurance Holdings Ltd.	760		18,901
Assurant Inc.	978		24,959
Assured Guaranty Ltd.	774		10,813
AXA SP ADR	13,002		274,862
Axis Capital Holdings Ltd.	1,116		31,761
China Life Insurance Co. Ltd. SP ADRb	3,607		240,082

SCHEDULES OF INVESTMENTS 45

Schedule of Investments (Continued)

iSHARES^® NYSE COMPOSITE INDEX FUND

July 31, 2009

Security	Shares	Value
Chubb Corp.	2,699	$	124,640
CIGNA Corp.	2,069		58,760
CNA Financial Corp.	407		6,939
Conseco Inc.a	1,795		5,582
Delphi Financial Group Inc. Class A	376		8,960
Endurance Specialty Holdings Ltd.	451		15,050
Everest Re Group Ltd.	471		37,784
Fairfax Financial Holdings Ltd.	131		40,006
FBL Financial Group Inc. Class A	267		2,619
Fidelity National Financial Inc. Class A	1,747		25,069
First American Corp.	683		20,183
Genworth Financial Inc. Class A	3,268		22,549
Hanover Insurance Group Inc. (The)	500		19,655
Hartford Financial Services Group Inc. (The)	2,376		39,180
HCC Insurance Holdings Inc.	949		23,820
Horace Mann Educators Corp.	583		6,617
ING Groep NV SP ADR	15,815		204,646
Kingsway Financial Services Inc.	878		2,836
Lincoln National Corp.	1,880		39,837
Loews Corp.	2,822		84,716
Manulife Financial Corp.	12,519		304,337
Markel Corp.a	75		23,668
Marsh & McLennan Companies Inc.	3,926		80,169
Mercury General Corp.	226		7,926
MetLife Inc.	4,417		149,957
Montpelier Re Holdings Ltd.	900		14,112
Old Republic International Corp.	1,966		20,328
PartnerRe Ltd.	413		28,328
Phoenix Companies Inc. (The)a	1,727		3,799
Platinum Underwriters Holdings Ltd.	514		17,347
Primus Guaranty Ltd.a,b	803		2,385
Principal Financial Group Inc.	2,364		56,027
ProAssurance Corp.a	299		15,183
Progressive Corp. (The)a	5,027		78,321
Protective Life Corp.	473		7,071
Prudential Financial Inc.	3,258		144,232
Prudential PLC SP ADR	9,433		141,778
Reinsurance Group of America Inc.	518		21,497
RenaissanceRe Holdings Ltd.	486		24,421
RLI Corp.	217		10,765

Security	Shares	Value
StanCorp Financial Group Inc.	450	$	15,489
Stewart Information Services Corp.	311		4,282
Sun Life Financial Inc.	4,309		146,937
Torchmark Corp.	696		27,186
Transatlantic Holdings Inc.	215		10,172
Travelers Companies Inc. (The)	4,433		190,929
Unitrin Inc.	339		4,471
Unum Group	2,667		50,060
W.R. Berkley Corp.	1,185		27,528
White Mountains Insurance Group Ltd.	52		13,416
Willis Group Holdings Ltd.	1,391		34,664
XL Capital Ltd. Class A	2,454		34,552
Zenith National Insurance Corp.	374		8,927
			4,046,737
INTERNET – 0.07%
Giant Interactive Group Inc. SP ADR	1,586		12,894
McAfee Inc.a	1,236		55,101
			67,995
INVESTMENT COMPANIES – 0.00%
Arlington Asset Investment Corp. Class Aa,b	3,914		1,605
			1,605
IRON & STEEL – 0.79%
AK Steel Holding Corp.	997		19,611
Allegheny Technologies Inc.	735		19,904
ArcelorMittal NYS	6,806		245,288
Carpenter Technology Corp.	448		8,373
Cliffs Natural Resources Inc.	976		26,733
Companhia Siderurgica Nacional SA SP ADR	2,939		75,238
Mechel OAO SP ADR	1,123		11,994
Nucor Corp.	2,258		100,413
POSCO SP ADR	2,221		224,476
Reliance Steel & Aluminum Co.	590		19,889
United States Steel Corp.	1,063		42,254
			794,173
LEISURE TIME – 0.18%
Carnival Corp.	3,233		90,492
Harley-Davidson Inc.	1,899		42,917
Polaris Industries Inc.	339		12,838

46 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® NYSE COMPOSITE INDEX FUND

July 31, 2009

Security	Shares	Value
Royal Caribbean Cruises Ltd.	1,189	$	17,264
WMS Industries Inc.a	428		15,476
			178,987
LODGING – 0.20%
Boyd Gaming Corp.a	411		3,777
Choice Hotels International Inc.b	302		8,411
Gaylord Entertainment Co.a,b	413		5,894
InterContinental Hotels Group PLC SP ADR	2,014		22,798
Las Vegas Sands Corp.a	3,544		33,136
Marcus Corp.	579		7,319
Marriott International Inc. Class A	2,328		50,145
MGM MIRAGEa,b	1,982		14,330
Orient-Express Hotels Ltd. Class A	375		3,319
Starwood Hotels & Resorts Worldwide Inc.	1,388		32,771
Wyndham Worldwide Corp.	1,427		19,907
			201,807
MACHINERY – 0.62%
AGCO Corp.a	703		22,116
Albany International Corp. Class A	318		4,369
Applied Industrial Technologies Inc.	339		7,499
Briggs & Stratton Corp.	504		8,654
Cascade Corp.	148		3,619
Caterpillar Inc.	4,609		203,073
CNH Global NVa	148		2,600
Cummins Inc.	1,438		61,848
Deere & Co.	3,205		140,187
Flowserve Corp.	417		33,681
Gardner Denver Inc.a	452		13,194
Graco Inc.	567		14,028
IDEX Corp.	686		18,714
Kadant Inc.a	450		4,999
Manitowoc Co. Inc. (The)	1,048		6,477
NACCO Industries Inc. Class A	100		4,209
Rockwell Automation Inc.	1,047		43,356
Terex Corp.a	752		11,415
Wabtec Corp.	424		14,268
			618,306
MACHINERY – DIVERSIFIED – 0.08%
Kubota Corp. SP ADR	1,778		80,703
			80,703

Security	Shares	Value
MANUFACTURING – 3.16%
A.O. Smith Corp.	148	$	5,778
Acuity Brands Inc.	390		11,509
Ameron International Corp.	128		9,539
AptarGroup Inc.	522		18,228
Barnes Group Inc.	615		8,653
Blount International Inc.a	760		7,068
Brink’s Co. (The)	302		8,199
Carlisle Companies Inc.	450		14,098
CLARCOR Inc.	533		17,648
Cooper Industries Ltd. Class A	1,283		42,275
Crane Co.	450		9,549
Danaher Corp.	1,881		115,192
Donaldson Co. Inc.	604		22,958
Dover Corp.	1,390		47,274
Eastman Kodak Co.	2,479		7,363
Eaton Corp.	1,267		65,783
EnPro Industries Inc.a	195		3,475
General Electric Co.	81,700		1,094,780
Harsco Corp.	785		21,595
Hexcel Corp.a	896		9,148
Honeywell International Inc.	5,205		180,614
Illinois Tool Works Inc.	3,125		126,719
Ingersoll-Rand PLC	2,495		72,056
ITT Corp.	1,430		70,642
John Bean Technologies Corp.	228		3,160
Leggett & Platt Inc.	1,429		24,793
Myers Industries Inc.	690		6,790
Pall Corp.	980		29,478
Parker Hannifin Corp.	1,295		57,343
Pentair Inc.	752		20,545
Roper Industries Inc.	736		35,196
Siemens AG SP ADR	6,210		493,571
Teleflex Inc.	366		17,553
Textron Inc.	1,929		25,926
3M Co.	4,785		337,438
Tredegar Corp.	392		5,739
Trinity Industries Inc.	760		10,610
Tyco International Ltd.	3,734		112,841
			3,171,126
MEDIA – 1.52%
A.H. Belo Corp. Class A	949		2,259

SCHEDULES OF INVESTMENTS 47

Schedule of Investments (Continued)

iSHARES^® NYSE COMPOSITE INDEX FUND

July 31, 2009

Security	Shares	Value
Belo Corp. Class A	1,158	$	3,323
British Sky Broadcasting Group PLC SP ADR	2,070		75,265
Cablevision Systems Corp. Class A	1,800		36,846
CBS Corp. Class B NVS	4,699		38,485
Corus Entertainment Inc. Class B	604		8,202
E.W. Scripps Co. (The) Class A	1,555		6,251
Entravision Communications Corp. Class Aa	2,736		1,587
Gannett Co. Inc.	1,727		12,089
Grupo Televisa SA SP ADR	3,727		67,421
John Wiley & Sons Inc. Class A	454		14,478
McGraw-Hill Companies Inc. (The)	2,410		75,554
Media General Inc. Class Ab	711		3,306
Meredith Corp.b	302		7,994
Pearson PLC SP ADR	6,608		76,587
Reed Elsevier NV SP ADR	2,354		49,104
Reed Elsevier PLC SP ADR	2,189		62,036
Rogers Communications Inc. Class B	3,763		104,762
Shaw Communications Inc. Class B	3,088		54,133
Thomson Reuters Corp.	1,484		48,126
Time Warner Cable Inc.	2,587		85,526
Time Warner Inc.	9,045		241,140
Viacom Inc. Class Ba	3,999		92,617
Walt Disney Co. (The)	13,432		337,412
Washington Post Co. (The) Class B	41		18,512
			1,523,015
METAL FABRICATE & HARDWARE – 0.26%
CIRCOR International Inc.	140		3,228
Commercial Metals Co.	981		16,226
Kaydon Corp.	310		10,128
Mueller Water Products Inc. Class A	993		3,833
Precision Castparts Corp.	1,060		84,599
Sims Metal Management Ltd. SP ADR	882		20,586
Sterlite Industries (India) Ltd. SP ADR	2,235		29,614
Tenaris SA SP ADR	1,870		56,698
Timken Co. (The)	748		15,244
Valmont Industries Inc.	148		10,629
Worthington Industries Inc.	879		11,620
			262,405
MINING – 3.67%
Agnico-Eagle Mines Ltd.	1,166		68,269

Security	Shares	Value
Alcoa Inc.	7,573	$	89,058
Alumina Ltd. SP ADR	4,786		27,472
Aluminum Corp. of China Ltd. SP ADR	1,302		37,602
AMCOL International Corp.	312		5,869
AngloGold Ashanti Ltd. SP ADR	2,571		100,783
Barrick Gold Corp.	6,669		232,748
BHP Billiton Ltd. SP ADR	13,032		820,495
BHP Billiton PLC SP ADR	8,572		453,459
Cameco Corp.	2,938		81,236
Coeur d’Alene Mines Corp.a	613		8,705
Compania de Minas Buenaventura SA SP ADR	1,390		36,210
Compass Minerals International Inc.	254		13,510
Freeport-McMoRan Copper & Gold Inc.	3,105		187,232
Gammon Gold Inc.a	1,341		9,360
Gold Fields Ltd. SP ADR	5,186		62,543
Goldcorp Inc.	5,642		212,647
Harmony Gold Mining Co. Ltd. SP ADRa	2,473		22,900
Hecla Mining Co.a,b	1,577		4,968
IAMGOLD Corp.	3,263		34,457
Ivanhoe Mines Ltd.a	1,789		14,419
Kinross Gold Corp.	5,322		104,524
Newmont Mining Corp.	3,623		149,811
Rio Tinto PLC SP ADR	2,533		424,480
RTI International Metals Inc.a	231		4,103
Silver Wheaton Corp.a	2,539		23,308
Southern Copper Corp.	1,797		46,291
Stillwater Mining Co.a	639		4,275
Teck Resources Ltd. Class Ba	3,838		100,901
Titanium Metals Corp.	822		6,880
Vale SA SP ADR	10,229		201,818
Vulcan Materials Co.	737		34,993
Yamana Gold Inc.	5,700		54,093
			3,679,419
OFFICE & BUSINESS EQUIPMENT – 0.42%
Canon Inc. SP ADR	9,116		337,474
Pitney Bowes Inc.	1,557		32,152
Xerox Corp.	6,738		55,184
			424,810

48 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® NYSE COMPOSITE INDEX FUND

July 31, 2009

Security	Shares	Value
OFFICE FURNISHINGS – 0.01%
Steelcase Inc. Class A	750	$	5,490
			5,490
OIL & GAS – 13.63%
Anadarko Petroleum Corp.	3,557		171,447
Apache Corp.	2,538		213,065
Atwood Oceanics Inc.a	580		16,727
Berry Petroleum Co. Class A	500		11,860
BP PLC SP ADR	23,825		1,192,203
Cabot Oil & Gas Corp.	824		28,947
Canadian Natural Resources Ltd.	4,178		252,309
Chesapeake Energy Corp.	4,761		102,076
Chevron Corp.	15,247		1,059,209
China Petroleum & Chemical Corp. SP ADR	1,289		115,185
Cimarex Energy Co.	636		22,756
CNOOC Ltd. SP ADR	1,167		155,596
Comstock Resources Inc.a	486		18,711
Concho Resources Inc.a	636		19,525
ConocoPhillips	10,422		455,546
Denbury Resources Inc.a	1,973		32,752
Devon Energy Corp.	3,179		184,668
Diamond Offshore Drilling Inc.	542		48,710
EnCana Corp.	5,834		312,994
Encore Acquisition Co.a	494		17,586
Eni SpA SP ADR	9,250		430,865
ENSCO International Inc.	1,165		44,142
EOG Resources Inc.	1,931		142,952
EQT Corp.	980		37,612
EXCO Resources Inc.a	1,406		19,318
Exxon Mobil Corp.	37,607		2,647,157
Forest Oil Corp.a	907		15,283
Frontier Oil Corp.	908		12,621
Goodrich Petroleum Corp.a,b	418		10,722
Helmerich & Payne Inc.	816		28,038
Hess Corp.	2,303		127,126
Marathon Oil Corp.	5,529		178,310
Mariner Energy Inc.a	1,041		12,482
Murphy Oil Corp.	1,452		84,506
Nabors Industries Ltd.a	2,373		40,388
Newfield Exploration Co.a	1,063		41,808
Nexen Inc.	4,043		84,135

Security	Shares	Value
Noble Corp.	2,106	$	71,309
Noble Energy Inc.	1,358		83,001
Occidental Petroleum Corp.	6,226		444,163
Parker Drilling Co.a	1,876		8,667
Penn Virginia Corp.	397		7,626
Penn West Energy Trust	1,907		24,924
Petro-Canada	3,713		153,607
PetroChina Co. Ltd. SP ADR	1,635		192,521
Petrohawk Energy Corp.a	2,294		55,698
Petroleo Brasileiro SA SP ADR	8,629		355,860
Pioneer Natural Resources Co.	984		28,093
Plains Exploration & Production Co.a	978		28,020
Pride International Inc.a	1,249		31,312
Quicksilver Resources Inc.a	1,062		12,171
Range Resources Corp.	1,266		58,755
Repsol YPF SA SP ADR	6,117		142,710
Rowan Companies Inc.	710		15,144
Royal Dutch Shell PLC Class A SP ADR	13,604		716,115
Royal Dutch Shell PLC Class B SP ADR	10,405		546,575
SandRidge Energy Inc.a	986		9,219
Sasol Ltd. SP ADR	3,405		121,627
Southwestern Energy Co.a	2,670		110,618
St. Mary Land & Exploration Co.	688		16,423
StatoilHydro ASA SP ADR	8,351		179,129
Stone Energy Corp.a	375		4,073
Suncor Energy Inc.	7,168		232,817
Sunoco Inc.	962		23,752
Swift Energy Co.a	381		7,506
Talisman Energy Inc.	7,979		122,797
Tesoro Corp.	1,124		14,713
Total SA SP ADR	15,989		889,788
Transocean Ltd.a	2,487		198,189
Ultra Petroleum Corp.a	1,270		56,032
Unit Corp.a	449		14,229
VAALCO Energy Inc.	1,289		5,710
Valero Energy Corp.	4,092		73,656
W&T Offshore Inc.	552		5,901
Whiting Petroleum Corp.a	487		22,383
XTO Energy Inc.	4,559		183,409
YPF SA SP ADR	96		3,365
			13,660,944

SCHEDULES OF INVESTMENTS 49

Schedule of Investments (Continued)

iSHARES^® NYSE COMPOSITE INDEX FUND

July 31, 2009

Security	Shares	Value
OIL & GAS SERVICES – 1.31%
Baker Hughes Inc.	2,417	$	97,889
BJ Services Co.	2,168		30,742
Cameron International Corp.a	1,658		51,779
Compagnie Generale de Geophysique-Veritas SP ADRa	1,398		28,421
Complete Production Services Inc.a	717		5,922
Core Laboratories NV	225		19,341
Dril-Quip Inc.a	328		13,871
Exterran Holdings Inc.a	568		9,878
FMC Technologies Inc.a	1,054		45,849
Halliburton Co.	6,938		153,260
Helix Energy Solutions Group Inc.a	723		7,584
ION Geophysical Corp.a	1,200		3,228
National Oilwell Varco Inc.a	3,183		114,397
Newpark Resources Inc.a	1,109		2,917
Oceaneering International Inc.a	495		25,205
Oil States International Inc.a	551		14,943
Schlumberger Ltd.	9,273		496,106
SEACOR Holdings Inc.a	148		11,763
Smith International Inc.	1,669		41,942
Superior Energy Services Inc.a	639		10,601
Tetra Technologies Inc.a	590		4,549
Tidewater Inc.	413		18,585
Weatherford International Ltd.a	5,398		101,266
Willbros Group Inc.a	499		6,881
			1,316,919
PACKAGING & CONTAINERS – 0.24%
Ball Corp.	748		36,173
Bemis Co. Inc.	721		18,977
Crown Holdings Inc.a	1,342		33,684
Greif Inc. Class A	244		12,525
Intertape Polymer Group Inc.a	1,727		2,159
Owens-Illinois Inc.a	1,380		46,837
Packaging Corp. of America	784		15,421
Pactiv Corp.a	1,011		25,457
Sealed Air Corp.	1,356		24,937
Sonoco Products Co.	782		20,707
			236,877
PHARMACEUTICALS – 6.83%
Abbott Laboratories	11,782		530,072
Allergan Inc.	2,345		125,293

Security	Shares	Value
AmerisourceBergen Corp.	2,469	$	48,689
AstraZeneca PLC SP ADR	11,185		519,431
Bristol-Myers Squibb Co.	15,043		327,035
Cardinal Health Inc.	2,658		88,511
Elan Corp. PLC SP ADRa	3,668		28,904
Eli Lilly and Co.	7,514		262,163
Forest Laboratories Inc.a	2,414		62,354
GlaxoSmithKline PLC SP ADR	20,335		778,627
Hospira Inc.a	1,234		47,423
King Pharmaceuticals Inc.a	2,116		19,192
K-V Pharmaceutical Co. Class Aa	565		1,300
Medco Health Solutions Inc.a	3,692		195,159
Medicis Pharmaceutical Corp. Class A	518		8,868
Merck & Co. Inc.	16,168		485,202
NBTY Inc.a	439		15,892
Novartis AG SP ADR	18,804		857,838
Novo-Nordisk A/S SP ADR	3,682		214,992
Omnicare Inc.	957		22,844
Pfizer Inc.	51,856		826,066
PharMerica Corp.a	625		13,100
Sanofi-Aventis SP ADR	16,162		527,528
Schering-Plough Corp.	12,453		330,129
Watson Pharmaceuticals Inc.a	866		30,076
Wyeth	10,292		479,093
			6,845,781
PIPELINES – 0.56%
El Paso Corp.	5,452		54,847
Enbridge Inc.	2,652		103,004
National Fuel Gas Co.	597		24,226
ONEOK Inc.	752		24,891
Questar Corp.	1,426		47,158
Spectra Energy Corp.	4,938		90,662
TransCanada Corp.	4,728		134,512
Transportadora de Gas del Sur SA SP ADR	1,758		4,114
Williams Companies Inc. (The)	4,696		78,376
			561,790
REAL ESTATE – 0.20%
Brookfield Asset Management Inc. Class A	4,023		84,644
Brookfield Properties Corp.	1,972		18,655
CB Richard Ellis Group Inc. Class Aa	1,900		20,710

50 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® NYSE COMPOSITE INDEX FUND

July 31, 2009

Security	Shares	Value
E-House (China) Holdings Ltd. SP ADRa	691	$	12,286
Forest City Enterprises Inc. Class A	785		5,605
Forestar Group Inc.a	571		7,434
Hilltop Holdings Inc.a	701		8,412
Jones Lang LaSalle Inc.	270		10,249
MI Developments Inc. Class A	672		7,143
St. Joe Co. (The)a,b	735		20,698
			195,836
REAL ESTATE INVESTMENT TRUSTS – 1.38%
Alesco Financial Inc.a,b	3,581		2,363
Alexandria Real Estate Equities Inc.	302		11,509
AMB Property Corp.	1,158		22,940
American Campus Communities Inc.	654		14,996
Annaly Capital Management Inc.	4,269		71,933
Anworth Mortgage Asset Corp.	1,372		10,345
Apartment Investment and Management Co. Class A	739		6,932
Ashford Hospitality Trust Inc.	1,329		3,974
AvalonBay Communities Inc.	586		34,105
BioMed Realty Trust Inc.	1,017		11,879
Boston Properties Inc.	983		52,001
BRE Properties Inc. Class A	376		8,922
Camden Property Trust	519		15,316
CapitalSource Inc.	1,576		7,313
CapLease Inc.	1,641		4,972
Chimera Investment Corp.	3,496		12,516
DCT Industrial Trust Inc.	2,085		9,508
Developers Diversified Realty Corp.	969		5,436
Douglas Emmett Inc.	744		7,559
Duke Realty Corp.	1,735		16,465
EastGroup Properties Inc.	376		13,055
Entertainment Properties Trust	386		10,542
Equity Lifestyle Properties Inc.	239		9,959
Equity One Inc.b	613		9,226
Equity Residential	2,071		49,704
Essex Property Trust Inc.	207		13,457
Extra Space Storage Inc.	1,005		8,824
Federal Realty Investment Trust	454		25,901
FelCor Lodging Trust Inc.	721		1,694
First Industrial Realty Trust Inc.b	488		2,069
Getty Realty Corp.	615		13,770

Security	Shares	Value
Glimcher Realty Trust	2,047	$	6,919
HCP Inc.	2,096		53,993
Health Care REIT Inc.	884		35,413
Highwoods Properties Inc.	413		10,577
Home Properties Inc.	309		11,031
Hospitality Properties Trust	653		10,311
Host Hotels & Resorts Inc.	3,951		35,875
HRPT Properties Trust	2,066		9,958
Inland Real Estate Corp.	1,482		10,937
iStar Financial Inc.a,b	1,121		2,724
Kilroy Realty Corp.	227		5,357
Kimco Realty Corp.	2,754		27,099
LaSalle Hotel Properties	601		8,961
Lexington Realty Trust	972		4,160
Liberty Property Trust	758		21,050
Macerich Co. (The)	567		11,153
Maguire Properties Inc.a,b	678		468
MFA Financial Inc.	2,360		17,464
National Health Investors Inc.	302		9,404
National Retail Properties Inc.	705		13,896
Nationwide Health Properties Inc.	989		28,701
NorthStar Realty Finance Corp.	1,252		4,482
Omega Healthcare Investors Inc.	1,019		17,027
Parkway Properties Inc.	486		6,887
Pennsylvania Real Estate Investment Trustb	582		3,079
Post Properties Inc.	479		6,783
ProLogis	3,265		28,699
Public Storage Inc.	943		68,434
Ramco-Gershenson Properties Trust	753		6,845
Realty Income Corp.b	896		21,128
Regency Centers Corp.	660		21,173
Saul Centers Inc.	226		7,655
Senior Housing Properties Trust	927		17,298
Simon Property Group Inc.	2,079		115,842
SL Green Realty Corp.b	677		17,453
Sovran Self Storage Inc.	302		8,130
Strategic Hotels & Resorts Inc.	1,007		1,188
Sun Communities Inc.	533		8,155
Sunstone Hotel Investors Inc.	1,238		6,883
Tanger Factory Outlet Centers Inc.	300		10,662
Taubman Centers Inc.	576		15,327

SCHEDULES OF INVESTMENTS 51

Schedule of Investments (Continued)

iSHARES^® NYSE COMPOSITE INDEX FUND

July 31, 2009

Security	Shares	Value
UDR Inc.	986	$	10,304
Universal Health Realty Income Trust	449		15,342
U-Store-It Trust	1,365		6,620
Ventas Inc.	1,167		41,195
Vornado Realty Trust	1,324		67,550
Washington Real Estate Investment Trust	490		12,539
Weingarten Realty Investors	891		13,748
			1,385,064
RETAIL – 4.15%
Abercrombie & Fitch Co. Class A	677		19,355
Advance Auto Parts Inc.	793		36,660
Aeropostale Inc.a	519		18,892
American Eagle Outfitters Inc.	1,402		20,175
AnnTaylor Stores Corp.a	373		4,502
AutoNation Inc.a,b	600		12,408
AutoZone Inc.a	231		35,475
Barnes & Noble Inc.	380		8,751
Best Buy Co. Inc.	2,664		99,554
Big Lots Inc.a	651		14,999
BJ’s Wholesale Club Inc.a	522		17,409
Blockbuster Inc. Class Aa,b	2,231		1,629
Brinker International Inc.	834		13,878
Brown Shoe Co. Inc.	605		4,689
Buckle Inc. (The)	295		9,127
Cabela’s Inc.a,b	478		7,748
CarMax Inc.a	1,500		24,195
Cash America International Inc.	304		8,126
Cato Corp. (The) Class A	453		9,006
Chico’s FAS Inc.a	1,514		17,366
Chipotle Mexican Grill Inc. Class Ba	186		15,206
CKE Restaurants Inc.	667		5,903
Collective Brands Inc.a	810		12,895
CVS Caremark Corp.	10,990		367,945
Darden Restaurants Inc.	1,053		34,107
Delhaize Group SP ADR	777		55,315
Dick’s Sporting Goods Inc.a,b	738		14,649
Dillard’s Inc. Class A	752		7,979
DineEquity Inc.b	148		3,657
Family Dollar Stores Inc.	1,005		31,577
GameStop Corp. Class Aa	1,206		26,399
Gap Inc. (The)	4,159		67,875

Security	Shares	Value
Genesco Inc.a	356	$	7,732
Home Depot Inc. (The)	13,149		341,085
J.C. Penney Co. Inc.	1,492		44,984
Kohl’s Corp.a,b	2,253		109,383
Landry’s Restaurants Inc.a	182		1,631
Limited Brands Inc.	2,195		28,403
Lowe’s Companies Inc.	11,316		254,157
Macy’s Inc.	3,363		46,779
McDonald’s Corp.	8,610		474,067
Men’s Wearhouse Inc. (The)	411		8,882
Movado Group Inc.	696		9,939
MSC Industrial Direct Co. Inc. Class A	354		13,891
New York & Co. Inc.a	604		2,174
99 Cents Only Storesa	434		6,358
Nordstrom Inc.b	1,472		38,920
Nu Skin Enterprises Inc. Class A	469		8,447
Office Depot Inc.a	2,355		10,715
OfficeMax Inc.	859		7,997
Regis Corp.	339		4,631
Rite Aid Corp.a	6,419		9,372
Saks Inc.a	943		4,828
Sonic Automotive Inc.	468		5,756
Stage Stores Inc.	609		7,600
Talbots Inc. (The)b	676		3,387
Target Corp.	5,295		230,968
Tiffany & Co.	950		28,339
Tim Hortons Inc.	1,569		42,504
TJX Companies Inc. (The)	3,308		119,849
Tween Brands Inc.a	314		2,273
Under Armour Inc. Class Aa,b	346		8,404
Walgreen Co.	7,724		239,830
Wal-Mart Stores Inc.	17,053		850,604
Wendy’s/Arby’s Group Inc. Class A	3,569		16,346
World Fuel Services Corp.	299		13,114
Yum! Brands Inc.	3,674		130,280
			4,161,080
SAVINGS & LOANS – 0.04%
Guaranty Financial Group Inc.a	1,930		232
New York Community Bancorp Inc.b	2,610		28,553
NewAlliance Bancshares Inc.	1,191		14,590
			43,375

52 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® NYSE COMPOSITE INDEX FUND

July 31, 2009

Security	Shares	Value
SEMICONDUCTORS – 0.98%
Advanced Micro Devices Inc.a	5,033	$	18,421
Advanced Semiconductor Engineering Inc. SP ADR	7,396		26,034
Analog Devices Inc.	2,255		61,719
Emulex Corp.a	669		6,108
Fairchild Semiconductor International Inc.a	1,313		11,594
International Rectifier Corp.a	636		10,532
LSI Corp.a	5,774		29,909
MEMC Electronic Materials Inc.a	1,872		32,985
Micron Technology Inc.a	6,519		41,656
National Semiconductor Corp.	1,834		27,620
Semiconductor Manufacturing International Corp. SP ADRa	2,508		6,646
STMicroelectronics NV NYS	4,993		37,897
Taiwan Semiconductor Manufacturing Co. Ltd. SP ADR	34,448		360,671
Teradyne Inc.a,b	1,550		12,214
Texas Instruments Inc.	9,510		228,716
United Microelectronics Corp. SP ADR	21,252		72,257
			984,979
SOFTWARE – 0.75%
American Reprographics Co.a	408		3,529
BMC Software Inc.a	1,557		52,985
Broadridge Financial Solutions Inc.	1,244		21,484
Dun & Bradstreet Corp. (The)	432		31,100
Fair Isaac Corp.	480		9,211
Fidelity National Information Services Inc.	1,534		35,926
Global Payments Inc.	730		30,879
IMS Health Inc.	1,410		16,920
Konami Corp. SP ADR	823		17,653
Metavante Technologies Inc.a	744		22,915
Red Hat Inc.a	1,499		34,222
Salesforce.com Inc.a	876		37,966
SAP AG SP ADR	6,776		320,166
Sybase Inc.a	752		26,922
SYNNEX Corp.a	310		8,810
Total System Services Inc.	1,485		21,800

Security	Shares	Value
VeriFone Holdings Inc.a	816	$	7,352
VMware Inc. Class Aa	530		17,082
Wipro Ltd. SP ADR	2,441		35,443
			752,365
TELECOMMUNICATIONS – 7.60%
Alcatel-Lucent SP ADRa	19,254		53,141
Amdocs Ltd.a	1,684		40,281
America Movil SAB de CV Series L SP ADR	6,067		260,942
American Tower Corp. Class Aa	3,147		107,281
Anixter International Inc.a	264		9,034
AT&T Inc.	45,542		1,194,567
BCE Inc.	6,009		138,447
British Telecom PLC SP ADR	6,012		126,733
CenturyTel Inc.	2,290		71,883
China Mobile Hong Kong Ltd. SP ADR	6,463		339,114
China Telecom Corp. Ltd. SP ADR	1,104		57,397
China Unicom (Hong Kong) Ltd. SP ADR	9,978		143,484
Cincinnati Bell Inc.a	3,425		10,720
CommScope Inc.a	776		19,866
Corning Inc.	12,100		205,700
Crown Castle International Corp.a	2,051		58,946
Deutsche Telekom AG SP ADR	22,555		288,478
FairPoint Communications Inc.	904		533
France Telecom SA SP ADR	14,373		365,505
Frontier Communications Corp.	2,664		18,648
Harris Corp.	1,054		33,001
Hellenic Telecommunications Organization SA SP ADR	3,858		30,247
KT Corp. SP ADR	1,598		25,664
Magyar Telekom Telecommunications PLC SP ADR	837		15,058
MasTec Inc.a	693		7,173
MetroPCS Communications Inc.a	1,954		23,155
Mobile TeleSystems SP ADR	1,496		62,817
Motorola Inc.	16,569		118,634
NeuStar Inc. Class Aa	794		18,008
Nippon Telegraph and Telephone Corp. SP ADR	6,833		141,101
Nokia OYJ SP ADR	28,722		383,151
NTT DoCoMo Inc. SP ADR	12,138		175,273

SCHEDULES OF INVESTMENTS 53

Schedule of Investments (Continued)

iSHARES^® NYSE COMPOSITE INDEX FUND

July 31, 2009

Security	Shares	Value
Philippine Long Distance Telephone Co. SP ADR	659	$	34,710
Plantronics Inc.	389		9,208
Portugal Telecom SGPS SA SP ADR	5,325		54,581
PT Indosat Tbk SP ADR	231		6,272
PT Telekomunikasi Indonesia SP ADR	2,051		72,441
Qwest Communications International Inc.	11,381		43,931
Rostelecom SP ADR	466		14,120
SK Telecom Co. Ltd. SP ADR	2,300		38,709
Sprint Nextel Corp.a	21,443		85,772
Syniverse Holdings Inc.a	897		15,724
Tata Communications Ltd. SP ADR	259		5,278
Telecom Argentina SA SP ADRa	871		11,907
Telecom Corp. of New Zealand Ltd. SP ADR	3,124		29,084
Telecom Italia SpA SP ADR	8,698		135,515
Telefonica SA SP ADR	10,416		777,450
Telefonos de Mexico SAB de CV Series L SP ADR	2,210		34,940
Telkom South Africa Ltd. SP ADR	419		8,246
Telmex Internacional SAB de CV SP ADR	2,334		29,315
TELUS Corp. NVS	1,118		30,656
Turkcell Iletisim Hizmetleri AS SP ADR	2,336		36,862
Verizon Communications Inc.	21,781		698,517
Vimpel-Communications SP ADRa	2,315		31,276
Vodafone Group PLC SP ADR	40,571		834,951
Windstream Corp.	3,742		32,817
			7,616,264
TEXTILES – 0.03%
Mohawk Industries Inc.a	413		21,303
UniFirst Corp.	216		8,407
			29,710
TOYS, GAMES & HOBBIES – 0.10%
Hasbro Inc.	1,048		27,772
Marvel Entertainment Inc.a	497		19,661
Mattel Inc.	2,965		52,125
			99,558
TRANSPORTATION – 1.45%
Bristow Group Inc.a	329		10,890
Burlington Northern Santa Fe Corp.	2,078		163,310
Canadian National Railway Co.	3,620		176,584

Security	Shares	Value
Canadian Pacific Railway Ltd.	1,240	$	55,168
Con-way Inc.	361		16,444
CSX Corp.	3,062		122,847
FedEx Corp.	2,276		154,404
Frontline Ltd.b	583		13,333
Genesee & Wyoming Inc. Class Aa	333		9,088
Guangshen Railway Co. Ltd. SP ADR	409		9,959
Kansas City Southern Industries Inc.a	671		13,628
Kirby Corp.a	516		19,097
Knight Transportation Inc.	566		10,267
Norfolk Southern Corp.	2,842		122,917
Overseas Shipholding Group Inc.	205		7,042
Ryder System Inc.	487		17,108
Ship Finance International Ltd.	643		7,928
Teekay Corp.	522		9,292
Tsakos Energy Navigation Ltd.	302		5,373
Union Pacific Corp.	3,872		222,717
United Parcel Service Inc. Class B	5,370		288,530
			1,455,926
TRUCKING & LEASING – 0.01%
GATX Corp.	374		9,432
			9,432
WATER – 0.16%
American States Water Co.	268		9,742
Aqua America Inc.	1,171		21,148
California Water Service Group	239		9,051
Companhia de Saneamento Basico do Estado de Sao Paulo SP ADR	448		15,102
Veolia Environnement SP ADR	3,068		105,570
			160,613
TOTAL COMMON STOCKS
(Cost: $137,015,664)			99,986,936
PREFERRED STOCKS – 0.07%
ELECTRIC – 0.02%
Companhia Paranaense de Energia SP ADR	1,160		18,003
			18,003
FOREST PRODUCTS & PAPER – 0.04%
Aracruz Celulose SA SP ADRa	482		9,621
Votorantim Celulose e Papel SA SP ADRa	1,651		24,666
			34,287

54 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® NYSE COMPOSITE INDEX FUND

July 31, 2009

Security	Shares	Value
REAL ESTATE INVESTMENT TRUSTS – 0.01%
Public Storage Inc. Class A, 6.13%	558	$	14,034
			14,034
TOTAL PREFERRED STOCKS
(Cost: $88,585)			66,324
RIGHTS – 0.00%
DIVERSIFIED FINANCIAL SERVICES – 0.00%
KB Financial Group Inc.a	210		2,835
			2,835
TOTAL RIGHTS
(Cost: $0)			2,835
SHORT-TERM INVESTMENTS – 1.34%
MONEY MARKET FUNDS – 1.34%
Barclays Global Investors Funds Institutional Money Market Fund, SL Agency Shares 0.33%c,e,f	1,099,166		1,099,166
Barclays Global Investors Funds Prime Money Market Fund, SL Agency Shares 0.26%c,e,f	152,202		152,202
Barclays Global Investors Funds Treasury Money Market Fund, SL Agency Shares 0.12%c,e	95,824		95,824
			1,347,192
TOTAL SHORT-TERM INVESTMENTS
(Cost: $1,347,192)			1,347,192
TOTAL INVESTMENTS IN SECURITIES – 101.16%
(Cost: $138,451,441)			101,403,287
Other Assets, Less Liabilities – (1.16)%			(1,164,057	)
NET ASSETS – 100.00%		$	100,239,230

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 Affiliated issuer. See Note 2.

^d Security valued using Level 3 inputs. See Note 1.

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

^f All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 55

Schedule of Investments

iSHARES^® NYSE 100 INDEX FUND

July 31, 2009

Security	Shares	Value
COMMON STOCKS – 99.88%
AEROSPACE & DEFENSE – 2.75%
Boeing Co. (The)	8,614	$	369,627
General Dynamics Corp.	4,213		233,358
Lockheed Martin Corp.	4,074		304,572
Raytheon Co.	5,187		243,530
United Technologies Corp.	11,528		627,930
			1,779,017
AGRICULTURE – 3.88%
Altria Group Inc.	26,996		473,240
Archer-Daniels-Midland Co.	7,733		232,918
Monsanto Co.	7,114		597,576
Philip Morris International Inc.	25,794		1,202,000
			2,505,734
APPAREL – 0.31%
Nike Inc. Class B	3,556		201,412
			201,412
BANKS – 6.45%
Bank of America Corp.	100,614		1,488,081
Bank of New York Mellon Corp. (The)	15,733		430,140
State Street Corp.	6,358		319,807
U.S. Bancorp	23,120		471,879
Wells Fargo & Co.	59,377		1,452,361
			4,162,268
BEVERAGES – 3.97%
Coca-Cola Co. (The)	27,995		1,395,271
PepsiCo Inc.	20,586		1,168,256
			2,563,527
CHEMICALS – 1.18%
E.I. du Pont de Nemours and Co.	11,150		344,870
Mosaic Co. (The)	1,937		101,015
Praxair Inc.	4,060		317,411
			763,296
COMMERCIAL SERVICES – 1.04%
Accenture Ltd. Class A	8,171		286,557
Visa Inc. Class A	5,879		384,839
			671,396
COMPUTERS – 5.91%
EMC Corp.a	26,497		399,045
Hewlett-Packard Co.	31,657		1,370,748
International Business Machines Corp.	17,377		2,049,270
			3,819,063

Security	Shares	Value
COSMETICS & PERSONAL CARE – 4.05%
Colgate-Palmolive Co.	6,575	$	476,293
Procter & Gamble Co. (The)	38,542		2,139,466
			2,615,759
DIVERSIFIED FINANCIAL SERVICES – 6.39%
American Express Co.	13,804		391,067
Citigroup Inc.	148,931		472,111
Goldman Sachs Group Inc. (The)	5,581		911,377
JPMorgan Chase & Co.	49,082		1,897,019
Morgan Stanley	15,967		455,060
			4,126,634
ELECTRIC – 2.42%
Dominion Resources Inc.	7,735		261,443
Duke Energy Corp.	16,865		261,070
Exelon Corp.	8,648		439,837
FPL Group Inc.	4,945		280,233
Southern Co.	10,236		321,410
			1,563,993
ELECTRICAL COMPONENTS & EQUIPMENT – 0.56%
Emerson Electric Co.	9,939		361,581
			361,581
FOOD – 1.41%
General Mills Inc.	4,079		240,294
Kraft Foods Inc. Class A	17,620		499,351
Kroger Co. (The)	7,989		170,805
			910,450
HEALTH CARE – PRODUCTS – 5.82%
Alcon Inc.	1,001		127,728
Baxter International Inc.	7,928		446,901
Becton, Dickinson and Co.	2,982		194,277
Covidien PLC	6,633		250,794
Johnson & Johnson	36,372		2,214,691
Medtronic Inc.	14,724		521,524
			3,755,915
HEALTH CARE – SERVICES – 1.20%
UnitedHealth Group Inc.	15,585		437,315
WellPoint Inc.a	6,380		335,843
			773,158
HOLDING COMPANIES – DIVERSIFIED – 0.72%
Berkshire Hathaway Inc. Class Ba	146		464,353
			464,353

56 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® NYSE 100 INDEX FUND

July 31, 2009

Security	Shares	Value
HOUSEHOLD PRODUCTS & WARES – 0.49%
Kimberly-Clark Corp.	5,466	$	319,488
			319,488
INSURANCE – 0.91%
MetLife Inc.	7,590		257,681
Travelers Companies Inc. (The)	7,694		331,381
			589,062
MACHINERY – 0.54%
Caterpillar Inc.	7,918		348,867
			348,867
MANUFACTURING – 4.95%
Danaher Corp.	3,246		198,785
General Electric Co.	138,872		1,860,885
Honeywell International Inc.	8,940		310,218
Illinois Tool Works Inc.	5,647		228,986
3M Co.	8,437		594,977
			3,193,851
MEDIA – 1.54%
Time Warner Inc.	15,700		418,562
Walt Disney Co. (The)	22,807		572,912
			991,474
MINING – 0.91%
Freeport-McMoRan Copper & Gold Inc.	5,421		326,886
Newmont Mining Corp.	6,286		259,926
			586,812
OIL & GAS – 15.97%
Anadarko Petroleum Corp.	6,553		315,855
Apache Corp.	4,385		368,121
Chevron Corp.	26,361		1,831,299
ConocoPhillips	17,118		748,228
Devon Energy Corp.	5,518		320,541
EOG Resources Inc.	3,252		240,746
Exxon Mobil Corp.	64,960		4,572,534
Hess Corp.	3,883		214,342
Marathon Oil Corp.	9,349		301,505
Occidental Petroleum Corp.	10,648		759,628
Transocean Ltd.a	4,201		334,778
XTO Energy Inc.	7,593		305,466
			10,313,043

Security	Shares	Value
OIL & GAS SERVICES – 1.70%
Halliburton Co.	11,765	$	259,889
Schlumberger Ltd.	15,674		838,559
			1,098,448
PHARMACEUTICALS – 9.11%
Abbott Laboratories	20,231		910,193
Bristol-Myers Squibb Co.	25,872		562,457
Eli Lilly and Co.	12,907		450,325
Medco Health Solutions Inc.a	6,350		335,661
Merck & Co. Inc.	27,798		834,218
Pfizer Inc.	88,643		1,412,083
Schering-Plough Corp.	21,294		564,504
Wyeth	17,543		816,627
			5,886,068
RETAIL – 7.30%
CVS Caremark Corp.	18,826		630,294
Home Depot Inc. (The)	22,277		577,865
Lowe’s Companies Inc.	19,252		432,400
McDonald’s Corp.	14,655		806,904
Target Corp.	9,000		392,580
Walgreen Co.	13,048		405,140
Wal-Mart Stores Inc.	29,467		1,469,814
			4,714,997
SEMICONDUCTORS – 0.62%
Texas Instruments Inc.	16,762		403,126
			403,126
TELECOMMUNICATIONS – 5.58%
AT&T Inc.	78,127		2,049,271
Corning Inc.	20,591		350,047
Verizon Communications Inc.	37,607		1,206,057
			3,605,375
TRANSPORTATION – 2.20%
Burlington Northern Santa Fe Corp.	3,642		286,225
FedEx Corp.	3,829		259,759
Union Pacific Corp.	6,623		380,955
United Parcel Service Inc. Class B	9,165		492,435
			1,419,374
TOTAL COMMON STOCKS
(Cost: $85,427,374)			64,507,541

SCHEDULES OF INVESTMENTS 57

Schedule of Investments (Continued)

iSHARES^® NYSE 100 INDEX FUND

July 31, 2009

Security	Shares	Value
SHORT-TERM INVESTMENTS – 0.14%
MONEY MARKET FUNDS – 0.14%
Barclays Global Investors Funds Treasury Money Market Fund, SL Agency Shares 0.12%b,c	87,391	$	87,391
			87,391
TOTAL SHORT-TERM INVESTMENTS
(Cost: $87,391)			87,391
TOTAL INVESTMENTS IN SECURITIES – 100.02%
(Cost: $85,514,765)			64,594,932
Other Assets, Less Liabilities – (0.02)%			(12,046	)
NET ASSETS – 100.00%		$	64,582,886

^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.

58 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities

iSHARES^® TRUST

July 31, 2009

	iShares S&P North American
	Technology Sector Index Fund			Technology- Multimedia Networking Index Fund			Technology- Semiconductors Index Fund			Technology- Software Index Fund
ASSETS
Investments, at cost:
Unaffiliated issuers	$	393,879,569		$	184,854,225		$	275,453,252		$	366,936,420
Affiliated issuers (Note 2)		2,539,470			7,309,431			8,911,614			6,730,346
Total cost of investments	$	396,419,039		$	192,163,656		$	284,364,866		$	373,666,766
Investments in securities, at fair value
(including securities on loana) (Note 1):
Unaffiliated issuers	$	332,842,308		$	161,699,527		$	226,118,270		$	301,018,392
Affiliated issuers (Note 2)		2,539,470			7,309,431			8,911,614			6,730,346
Total fair value of investments		335,381,778			169,008,958			235,029,884			307,748,738
Receivables:
Dividends and interest		76,216			16,705			103,138			64,012
Capital shares sold		–			3,659			1,308			910
Total Assets		335,457,994			169,029,322			235,134,330			307,813,660
LIABILITIES
Payables:
Collateral for securities on loan (Note 5)		2,364,921			7,191,737			8,803,902			6,549,698
Capital shares redeemed		–			2,361			–			–
Investment advisory fees (Note 2)		120,450			57,524			79,969			116,960
Total Liabilities		2,485,371			7,251,622			8,883,871			6,666,658
NET ASSETS	$	332,972,623		$	161,777,700		$	226,250,459		$	301,147,002
Net assets consist of:
Paid-in capital	$	425,365,764		$	247,766,785		$	331,767,091		$	410,289,585
Undistributed net investment income		–			–			119,049			–
Accumulated net realized loss		(31,355,880	)		(62,834,387	)		(56,300,699	)		(43,224,555	)
Net unrealized depreciation		(61,037,261	)		(23,154,698	)		(49,334,982	)		(65,918,028	)
NET ASSETS	$	332,972,623		$	161,777,700		$	226,250,459		$	301,147,002
Shares outstandingb		7,250,000			6,550,000			5,350,000			7,400,000
Net asset value per share	$	45.93		$	24.70		$	42.29		$	40.70

^a Securities on loan with values of $2,252,330, $7,058,660, $8,701,338 and $6,375,432, respectively. See Note 5.

^b No par value, unlimited number of shares authorized.

See notes to financial statements.

FINANCIAL STATEMENTS 59

Statements of Assets and Liabilities (Continued)

iSHARES^® TRUST

July 31, 2009

	iShares S&P North American			iShares NYSE
	Natural Resources Sector Index Fund			Composite Index Fund			100 Index Fund
ASSETS
Investments, at cost:
Unaffiliated issuers	$	1,663,734,972		$	136,371,280		$	85,427,374
Affiliated issuers (Note 2)		14,182,409			2,080,161			87,391
Total cost of investments	$	1,677,917,381		$	138,451,441		$	85,514,765
Investments in securities, at fair value (including securities on loana) (Note 1):
Unaffiliated issuers	$	1,426,276,454		$	99,623,666		$	64,507,541
Affiliated issuers (Note 2)		14,182,409			1,779,621			87,391
Total fair value of investments		1,440,458,863			101,403,287			64,594,932
Cash		–			3,289			–
Receivables:
Investment securities sold		765,560			–			132,714
Dividends and interest		1,148,187			226,180			125,823
Total Assets		1,442,372,610			101,632,756			64,853,469
LIABILITIES
Payables:
Investment securities purchased		–			122,360			260,199
Collateral for securities on loan (Note 5)		13,966,867			1,251,368			–
Investment advisory fees (Note 2)		544,446			19,798			10,384
Total Liabilities		14,511,313			1,393,526			270,583
NET ASSETS	$	1,427,861,297		$	100,239,230		$	64,582,886
Net assets consist of:
Paid-in capital	$	1,839,705,794		$	145,858,419		$	105,542,047
Undistributed net investment income		744,862			278,969			146,412
Accumulated net realized loss		(175,130,841	)		(8,850,004	)		(20,185,740	)
Net unrealized depreciation		(237,458,518	)		(37,048,154	)		(20,919,833	)
NET ASSETS	$	1,427,861,297		$	100,239,230		$	64,582,886
Shares outstandingb		48,000,000			1,700,000			1,300,000
Net asset value per share	$	29.75		$	58.96		$	49.68

^a Securities on loan with values of $13,699,140, $1,220,201 and $–, respectively. See Note 5.

^b No par value, unlimited number of shares authorized.

See notes to financial statements.

60 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations

iSHARES^® TRUST

Year ended July 31, 2009

	iShares S&P North American
	Technology Sector Index Fund			Technology- Multimedia Networking Index Fund			Technology- Semiconductors Index Fund			Technology- Software Index Fund
NET INVESTMENT INCOME
Dividends from unaffiliated issuers	$	2,364,616		$	486,607		$	2,051,897		$	1,030,707
Interest from affiliated issuers (Note 2)		1,425			279			767			1,325
Securities lending income from affiliated issuers (Note 2)		33,840			18,746			61,837			208,313
Total investment income		2,399,881			505,632			2,114,501			1,240,345
EXPENSES
Investment advisory fees (Note 2)		1,151,744			338,090			654,017			1,529,512
Total expenses		1,151,744			338,090			654,017			1,529,512
Net investment income (loss)		1,248,137			167,542			1,460,484			(289,167	)
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments in unaffiliated issuers		(20,449,161	)		(25,764,833	)		(28,995,778	)		(38,216,506	)
In-kind redemptions		(17,260,346	)		(8,192,732	)		(14,469,960	)		(29,061,503	)
Net realized loss		(37,709,507	)		(33,957,565	)		(43,465,738	)		(67,278,009	)
Net change in unrealized appreciation (depreciation)		(910,019	)		22,645,572			35,150,945			(24,700,468	)
Net realized and unrealized loss		(38,619,526	)		(11,311,993	)		(8,314,793	)		(91,978,477	)
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	(37,371,389	)	$	(11,144,451	)	$	(6,854,309	)	$	(92,267,644	)

See notes to financial statements.

FINANCIAL STATEMENTS 61

Statements of Operations (Continued)

iSHARES^® TRUST

Year ended July 31, 2009

	iShares S&P North American			iShares NYSE
	Natural Resources Sector Index Fund			Composite Index Fund			100 Index Fund
NET INVESTMENT INCOME
Dividends from unaffiliated issuersa	$	23,142,451		$	3,111,053		$	2,132,933
Dividends from affiliated issuers (Note 2)		–			12,261			–
Interest from affiliated issuers (Note 2)		5,680			814			431
Securities lending income from affiliated issuers (Note 2)		260,752			42,402			11,227
Total investment income		23,408,883			3,166,530			2,144,591
EXPENSES
Investment advisory fees (Note 2)		6,300,945			238,055			135,505
Total expenses		6,300,945			238,055			135,505
Net investment income		17,107,938			2,928,475			2,009,086
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments in unaffiliated issuers		(150,641,139	)		(8,885,383	)		(16,916,172	)
Investments in affiliated issuers (Note 2)		–			(49,191	)		–
In-kind redemptions		106,042,436			(469,866	)		(247,152	)
Net realized loss		(44,598,703	)		(9,404,440	)		(17,163,324	)
Net change in unrealized appreciation (depreciation)		(569,134,950	)		(21,370,659	)		(4,206,264	)
Net realized and unrealized loss		(613,733,653	)		(30,775,099	)		(21,369,588	)
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	(596,625,715	)	$	(27,846,624	)	$	(19,360,502	)

^a Net of foreign withholding tax of $474,714, $111,864 and $657, respectively.

See notes to financial statements.

62 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets

iSHARES^® TRUST

	iShares S&P North American Technology Sector Index Fund						iShares S&P North American Technology-Multimedia Networking Index Fund
	Year ended July 31, 2009			Year ended July 31, 2008			Year ended July 31, 2009			Year ended July 31, 2008
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss)	$	1,248,137		$	795,179		$	167,542		$	(158,304	)
Net realized gain (loss)		(37,709,507	)		11,589,309			(33,957,565	)		(6,662,867	)
Net change in unrealized appreciation (depreciation)		(910,019	)		(49,812,724	)		22,645,572			(29,896,783	)
Net decrease in net assets resulting from operations		(37,371,389	)		(37,428,236	)		(11,144,451	)		(36,717,954	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(1,327,608	)		(748,524	)		(198,517	)		–
Return of capital		–			(120,844	)		(31,800	)		(4,787	)
Total distributions to shareholders		(1,327,608	)		(869,368	)		(230,317	)		(4,787	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		175,493,451			231,701,500			142,565,070			182,597,210
Cost of shares redeemed		(141,135,707	)		(223,588,207	)		(63,223,662	)		(278,194,964	)
Net increase (decrease) in net assets from capital share transactions		34,357,744			8,113,293			79,341,408			(95,597,754	)
INCREASE (DECREASE) IN NET ASSETS		(4,341,253	)		(30,184,311	)		67,966,640			(132,320,495	)
NET ASSETS
Beginning of year		337,313,876			367,498,187			93,811,060			226,131,555
End of year	$	332,972,623		$	337,313,876		$	161,777,700		$	93,811,060
Undistributed net investment income included in net assets at end of year	$	–		$	46,655		$	–		$	30,975
SHARES ISSUED AND REDEEMED
Shares sold		4,400,000			4,000,000			6,300,000			5,350,000
Shares redeemed		(3,650,000	)		(4,050,000	)		(3,000,000	)		(8,500,000	)
Net increase (decrease) in shares outstanding		750,000			(50,000	)		3,300,000			(3,150,000	)

See notes to financial statements.

FINANCIAL STATEMENTS 63

Statements of Changes in Net Assets (Continued)

iSHARES^® TRUST

	iShares S&P North American Technology-Semiconductors Index Fund						iShares S&P North American Technology-Software Index Fund
	Year ended July 31, 2009			Year ended July 31, 2008			Year ended July 31, 2009			Year ended July 31, 2008
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss)	$	1,460,484		$	1,411,039		$	(289,167	)	$	(989,192	)
Net realized gain (loss)		(43,465,738	)		(11,211,205	)		(67,278,009	)		10,025,278
Net change in unrealized appreciation (depreciation)		35,150,945			(59,177,636	)		(24,700,468	)		(26,309,981	)
Net decrease in net assets resulting from operations		(6,854,309	)		(68,977,802	)		(92,267,644	)		(17,273,895	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(1,480,896	)		(1,271,578	)		–			–
Return of capital		–			(34,773	)		–			–
Total distributions to shareholders		(1,480,896	)		(1,306,351	)		–			–
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		235,647,623			895,831,652			324,463,242			748,408,396
Cost of shares redeemed		(181,980,503	)		(947,839,343	)		(372,525,927	)		(479,859,240	)
Net increase (decrease) in net assets from capital share transactions		53,667,120			(52,007,691	)		(48,062,685	)		268,549,156
INCREASE (DECREASE) IN NET ASSETS		45,331,915			(122,291,844	)		(140,330,329	)		251,275,261
NET ASSETS
Beginning of year		180,918,544			303,210,388			441,477,331			190,202,070
End of year	$	226,250,459		$	180,918,544		$	301,147,002		$	441,477,331
Undistributed net investment income included in net assets at end of year	$	119,049		$	139,461		$	–		$	46,734
SHARES ISSUED AND REDEEMED
Shares sold		6,700,000			16,350,000			8,400,000			15,350,000
Shares redeemed		(5,200,000	)		(17,100,000	)		(10,300,000	)		(10,200,000	)
Net increase (decrease) in shares outstanding		1,500,000			(750,000	)		(1,900,000	)		5,150,000

See notes to financial statements.

64 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^® TRUST

	iShares S&P North American Natural Resources Sector Index Fund						iShares NYSE Composite Index Fund
	Year ended July 31, 2009			Year ended July 31, 2008			Year ended July 31, 2009			Year ended July 31, 2008
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	17,107,938		$	16,586,215		$	2,928,475		$	2,977,527
Net realized gain (loss)		(44,598,703	)		192,052,608			(9,404,440	)		9,519,704
Net change in unrealized appreciation (depreciation)		(569,134,950	)		(29,309,980	)		(21,370,659	)		(24,108,800	)
Net increase (decrease) in net assets resulting from operations		(596,625,715	)		179,328,843			(27,846,624	)		(11,611,569	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(16,830,502	)		(16,118,789	)		(2,861,921	)		(2,858,901	)
Total distributions to shareholders		(16,830,502	)		(16,118,789	)		(2,861,921	)		(2,858,901	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		528,717,336			653,158,392			34,369,738			80,498,141
Cost of shares redeemed		(644,490,976	)		(526,956,338	)		(19,489,820	)		(67,957,425	)
Net increase (decrease) in net assets from capital share transactions		(115,773,640	)		126,202,054			14,879,918			12,540,716
INCREASE (DECREASE) IN NET ASSETS		(729,229,857	)		289,412,108			(15,828,627	)		(1,929,754	)
NET ASSETS
Beginning of year		2,157,091,154			1,867,679,046			116,067,857			117,997,611
End of year	$	1,427,861,297		$	2,157,091,154		$	100,239,230		$	116,067,857
Undistributed net investment income included in net assets at end of year	$	744,862		$	467,426		$	278,969		$	212,415
SHARES ISSUED AND REDEEMED
Shares sold		18,900,000			15,050,000			600,000			950,000
Shares redeemed		(20,550,000	)		(12,050,000	)		(400,000	)		(800,000	)
Net increase (decrease) in shares outstanding		(1,650,000	)		3,000,000			200,000			150,000

See notes to financial statements.

FINANCIAL STATEMENTS 65

Statements of Changes in Net Assets (Continued)

iSHARES^® TRUST

	iShares NYSE 100 Index Fund
	Year ended July 31, 2009			Year ended July 31, 2008
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	2,009,086		$	2,888,869
Net realized gain (loss)		(17,163,324	)		7,264,748
Net change in unrealized appreciation (depreciation)		(4,206,264	)		(24,497,882	)
Net decrease in net assets resulting from operations		(19,360,502	)		(14,344,265	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(2,064,996	)		(3,064,941	)
Total distributions to shareholders		(2,064,996	)		(3,064,941	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		4,907,566			3,435,271
Cost of shares redeemed		(9,539,012	)		(150,790,741	)
Net decrease in net assets from capital share transactions		(4,631,446	)		(147,355,470	)
DECREASE IN NET ASSETS		(26,056,944	)		(164,764,676	)
NET ASSETS
Beginning of year		90,639,830			255,404,506
End of year	$	64,582,886		$	90,639,830
Undistributed net investment income included in net assets at end of year	$	146,412		$	202,322
SHARES ISSUED AND REDEEMED
Shares sold		100,000			50,000
Shares redeemed		(200,000	)		(2,000,000	)
Net decrease in shares outstanding		(100,000	)		(1,950,000	)

See notes to financial statements.

66 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares S&P North American Technology Sector Index Fund
	Year ended Jul. 31, 2009			Year ended Jul. 31, 2008			Year ended Jul. 31, 2007			Year ended Jul. 31, 2006			Year ended Jul. 31, 2005
Net asset value, beginning of year	$	51.89		$	56.11		$	42.86		$	46.05		$	41.79
Income from investment operations:
Net investment income		0.21	a		0.11	a		0.05	a		0.02	a		0.35
Net realized and unrealized gain (loss)b		(5.94	)		(4.21	)		13.27			(3.17	)		4.28
Total from investment operations		(5.73	)		(4.10	)		13.32			(3.15	)		4.63
Less distributions from:
Net investment income		(0.23	)		(0.10	)		(0.05	)		(0.04	)		(0.34	)
Return of capital		–			(0.02	)		(0.02	)		–			(0.03	)
Total distributions		(0.23	)		(0.12	)		(0.07	)		(0.04	)		(0.37	)
Net asset value, end of year	$	45.93		$	51.89		$	56.11		$	42.86		$	46.05
Total return		(10.91	)%		(7.32	)%		31.09	%		(6.85	)%		11.10	%
Ratios/Supplemental data:
Net assets, end of year (000s)	$	332,973		$	337,314		$	367,498		$	201,458		$	294,705
Ratio of expenses to average net assets		0.48	%		0.48	%		0.48	%		0.50	%		0.50	%
Ratio of net investment income to average net assets		0.52	%		0.20	%		0.09	%		0.04	%		0.81	%
Portfolio turnover ratec		9	%		6	%		20	%		5	%		7	%

^a Based on average shares outstanding throughout the period.

^b The amounts reported may not accord with the change in aggregate gains and losses in securities due to the timing of capital share transactions.

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

See notes to financial statements.

FINANCIAL HIGHLIGHTS 67

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares S&P North American Technology-Multimedia Networking Index Fund
	Year ended Jul. 31, 2009			Year ended Jul. 31, 2008			Year ended Jul. 31, 2007			Year ended Jul. 31, 2006			Year ended Jul. 31, 2005
Net asset value, beginning of year	$	28.86		$	35.33		$	26.25		$	29.90		$	26.97
Income from investment operations:
Net investment income (loss)		0.05	a		(0.03	)a		(0.08	)a		(0.10	)a		(0.08	)
Net realized and unrealized gain (loss)b		(4.15	)		(6.44	)		9.16			(3.55	)		3.01
Total from investment operations		(4.10	)		(6.47	)		9.08			(3.65	)		2.93
Less distributions from:
Net investment income		(0.05	)		–			–			–			–
Return of capital		(0.01	)		(0.00	)c		–			–			–
Total distributions		(0.06	)		(0.00	)c		–			–			–
Net asset value, end of year	$	24.70		$	28.86		$	35.33		$	26.25		$	29.90
Total return		(14.12	)%		(18.31	)%		34.59	%		(12.21	)%		10.86	%
Ratios/Supplemental data:
Net assets, end of year (000s)	$	161,778		$	93,811		$	226,132		$	157,518		$	147,986
Ratio of expenses to average net assets		0.48	%		0.48	%		0.48	%		0.50	%		0.50	%
Ratio of net investment income (loss) to average net assets		0.24	%		(0.10	)%		(0.25	)%		(0.31	)%		(0.26	)%
Portfolio turnover rated		34	%		23	%		53	%		32	%		16	%

^a Based on average shares outstanding throughout the period.

^b The amounts reported may not accord with the change in aggregate gains and losses in securities due to the timing of capital share transactions.

^c Rounds to less than $0.01.

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

See notes to financial statements.

68 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares S&P North American Technology-Semiconductors Index Fund
	Year ended Jul. 31, 2009			Year ended Jul. 31, 2008			Year ended Jul. 31, 2007			Year ended Jul. 31, 2006			Year ended Jul. 31, 2005
Net asset value, beginning of year	$	46.99		$	65.92		$	55.51		$	58.84		$	50.64
Income from investment operations:
Net investment income (loss)		0.38	a		0.31	a		0.20	a		0.04	a		(0.03	)
Net realized and unrealized gain (loss)b		(4.70	)		(18.94	)		10.43			(3.30	)		8.23
Total from investment operations		(4.32	)		(18.63	)		10.63			(3.26	)		8.20
Less distributions from:
Net investment income		(0.38	)		(0.29	)		(0.21	)		(0.05	)		–
Return of capital		–			(0.01	)		(0.01	)		(0.02	)		–
Total distributions		(0.38	)		(0.30	)		(0.22	)		(0.07	)		–
Net asset value, end of year	$	42.29		$	46.99		$	65.92		$	55.51		$	58.84
Total return		(8.87	)%		(28.35	)%		19.16	%		(5.56	)%		16.19	%
Ratios/Supplemental data:
Net assets, end of year (000s)	$	226,250		$	180,919		$	303,210		$	263,678		$	544,316
Ratio of expenses to average net assets		0.48	%		0.48	%		0.48	%		0.50	%		0.50	%
Ratio of net investment income (loss) to average net assets		1.07	%		0.55	%		0.32	%		0.07	%		(0.09	)%
Portfolio turnover ratec		15	%		14	%		25	%		6	%		10	%

^a Based on average shares outstanding throughout the period.

^b The amounts reported may not accord with the change in aggregate gains and losses in securities due to the timing of capital share transactions.

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

See notes to financial statements.

FINANCIAL HIGHLIGHTS 69

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares S&P North American Technology-Software Index Fund
	Year ended Jul. 31, 2009			Year ended Jul. 31, 2008			Year ended Jul. 31, 2007			Year ended Jul. 31, 2006			Year ended Jul. 31, 2005
Net asset value, beginning of year	$	47.47		$	45.83		$	37.63		$	40.29		$	33.85
Income from investment operations:
Net investment income (loss)		(0.03	)a		(0.14	)a		(0.12	)a		(0.13	)a		0.20
Net realized and unrealized gain (loss)b		(6.74	)		1.78			8.32			(2.53	)		6.48
Total from investment operations		(6.77	)		1.64			8.20			(2.66	)		6.68
Less distributions from:
Net investment income		–			–			–			–			(0.24	)
Total distributions		–			–			–			–			(0.24	)
Net asset value, end of year	$	40.70		$	47.47		$	45.83		$	37.63		$	40.29
Total return		(14.26	)%		3.58	%		21.79	%		(6.60	)%		19.72	%
Ratios/Supplemental data:
Net assets, end of year (000s)	$	301,147		$	441,477		$	190,202		$	80,900		$	229,641
Ratio of expenses to average net assets		0.48	%		0.48	%		0.48	%		0.50	%		0.50	%
Ratio of net investment income (loss) to average net assets		(0.09	)%		(0.30	)%		(0.26	)%		(0.31	)%		0.59	%
Portfolio turnover ratec		22	%		18	%		25	%		16	%		13	%

^a Based on average shares outstanding throughout the period.

^b The amounts reported may not accord with the change in aggregate gains and losses in securities due to the timing of capital share transactions.

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

See notes to financial statements.

70 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares S&P North American Natural Resources Sector Index Fund
	Year ended Jul. 31, 2009			Year ended Jul. 31, 2008a			Year ended Jul. 31, 2007a			Year ended Jul. 31, 2006a			Year ended Jul. 31, 2005a
Net asset value, beginning of year	$	43.45		$	40.04		$	33.87		$	26.97		$	19.50
Income from investment operations:
Net investment income		0.37	b		0.32	b		0.40	b		0.35	b		0.27
Net realized and unrealized gain (loss)c		(13.72	)		3.41			6.17			6.88			7.47
Total from investment operations		(13.35	)		3.73			6.57			7.23			7.74
Less distributions from:
Net investment income		(0.35	)		(0.32	)		(0.40	)		(0.33	)		(0.27	)
Return of capital		–			–			(0.00	)d		–			–
Total distributions		(0.35	)		(0.32	)		(0.40	)		(0.33	)		(0.27	)
Net asset value, end of year	$	29.75		$	43.45		$	40.04		$	33.87		$	26.97
Total return		(30.55	)%		9.25	%		19.56	%		26.96	%		39.92	%
Ratios/Supplemental data:
Net assets, end of year (000s)	$	1,427,861		$	2,157,091		$	1,867,679		$	1,453,116		$	800,886
Ratio of expenses to average net assets		0.48	%		0.48	%		0.48	%		0.50	%		0.50	%
Ratio of net investment income to average net assets		1.30	%		0.73	%		1.14	%		1.12	%		1.20	%
Portfolio turnover ratee		18	%		8	%		18	%		7	%		8	%

^a Per share amounts were adjusted to reflect a three-for-one stock split effective July 24, 2008.

^b Based on average shares outstanding throughout the period.

^c The amounts reported may not accord with the change in aggregate gains and losses in securities due to the timing of capital share transactions.

^d Rounds to less than $0.01.

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

See notes to financial statements.

FINANCIAL HIGHLIGHTS 71

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares NYSE Composite Index Fund
	Year ended Jul. 31, 2009			Year ended Jul. 31, 2008			Year ended Jul. 31, 2007			Year ended Jul. 31, 2006			Year ended Jul. 31, 2005
Net asset value, beginning of year	$	77.38		$	87.41		$	75.53		$	68.30		$	58.82
Income from investment operations:
Net investment income		1.69	a		2.10	a		1.70	a		1.66	a		1.63
Net realized and unrealized gain (loss)b		(18.44	)		(10.14	)		11.90			6.74			9.46
Total from investment operations		(16.75	)		(8.04	)		13.60			8.40			11.09
Less distributions from:
Net investment income		(1.67	)		(1.99	)		(1.72	)		(1.17	)		(1.61	)
Total distributions		(1.67	)		(1.99	)		(1.72	)		(1.17	)		(1.61	)
Net asset value, end of year	$	58.96		$	77.38		$	87.41		$	75.53		$	68.30
Total return		(21.44	)%		(9.38	)%		18.10	%		12.40	%		19.03	%
Ratios/Supplemental data:
Net assets, end of year (000s)	$	100,239		$	116,068		$	117,998		$	56,648		$	13,661
Ratio of expenses to average net assets		0.25	%		0.25	%		0.25	%		0.25	%		0.25	%
Ratio of net investment income to average net assets		3.08	%		2.45	%		2.02	%		2.26	%		2.01	%
Portfolio turnover ratec		6	%		5	%		7	%		4	%		5	%

^a Based on average shares outstanding throughout the period.

^b The amounts reported may not accord with the change in aggregate gains and losses in securities due to the timing of capital share transactions.

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

See notes to financial statements.

72 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares NYSE 100 Index Fund
	Year ended Jul. 31, 2009			Year ended Jul. 31, 2008			Year ended Jul. 31, 2007			Year ended Jul. 31, 2006			Year ended Jul. 31, 2005
Net asset value, beginning of year	$	64.74		$	76.24		$	68.41		$	64.54		$	59.80
Income from investment operations:
Net investment income		1.45	a		1.82	a		1.56	a		1.21	a		1.25
Net realized and unrealized gain (loss)b		(15.02	)		(11.32	)		7.79			3.85			4.73
Total from investment operations		(13.57	)		(9.50	)		9.35			5.06			5.98
Less distributions from:
Net investment income		(1.49	)		(2.00	)		(1.52	)		(1.19	)		(1.24	)
Total distributions		(1.49	)		(2.00	)		(1.52	)		(1.19	)		(1.24	)
Net asset value, end of year	$	49.68		$	64.74		$	76.24		$	68.41		$	64.54
Total return		(20.90	)%		(12.76	)%		13.73	%		7.93	%		10.06	%
Ratios/Supplemental data:
Net assets, end of year (000s)	$	64,583		$	90,640		$	255,405		$	318,115		$	32,271
Ratio of expenses to average net assets		0.20	%		0.20	%		0.20	%		0.20	%		0.20	%
Ratio of net investment income to average net assets		2.97	%		2.47	%		2.09	%		1.83	%		2.03	%
Portfolio turnover ratec		15	%		15	%		10	%		6	%		7	%

^a Based on average shares outstanding throughout the period.

^b The amounts reported may not accord with the change in aggregate gains and losses in securities due to the timing of capital share transactions.

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

See notes to financial statements.

FINANCIAL HIGHLIGHTS 73

Notes to Financial Statements

iSHARES^® TRUST

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.

These financial statements relate only to the iShares S&P North American Technology Sector, iShares S&P North American Technology-Multimedia Networking, iShares S&P North American Technology-Semiconductors, iShares S&P North American Technology-Software, iShares S&P North American Natural Resources Sector, 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.

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.

1. SIGNIFICANT ACCOUNTING POLICIES

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”). 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.

SECURITY VALUATION

The securities and other assets of each Fund are valued pursuant to the pricing policy and procedures approved by the Board of Trustees of the Trust (the “Board”). Effective August 1, 2008, the Funds adopted Financial Accounting Standards Board (“FASB”) Statement of Financial Accounting Standards No. 157 (“FAS 157”), “Fair Value Measurements.” This standard establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. Inputs may be based on independent market data (“observable inputs”) or they may be internally developed (“unobservable inputs”). The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under FAS 157 are as follows:

• Level 1 – Inputs that reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access at the measurement date (a “Level 1 Price”);

• Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived principally from or corroborated by observable market data by correlation or other means (a “Level 2 Price”);

• Level 3 – Inputs that are unobservable for the asset or liability (a “Level 3 Price”).

74 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. Inputs may include price information, volatility statistics, specific and broad credit data, liquidity statistics, and other factors. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3 of the fair value hierarchy.

The level of a value determined for a financial instrument within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement in its entirety. The categorization of a value determined for a financial instrument within the hierarchy is based upon the pricing transparency of the instrument and does not necessarily correspond to the Funds’ perceived risk of that instrument.

Investments whose values are based on quoted market prices in active markets, and whose values are therefore classified as Level 1 Prices, include active listed equities and certain U.S. government securities. The Funds do not adjust the quoted price for such instruments, even in situations where the Funds hold a large position and a sale could reasonably impact the quoted price.

Investments that trade in markets that are not considered to be active, but whose values are based on inputs such as quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs are classified within Level 2. These generally include certain U.S. government and sovereign obligations, most government agency securities, investment-grade corporate bonds, certain mortgage products, less liquid listed equities, and state, municipal and provincial obligations. As Level 2 investments include positions that are not traded in active markets and/or are subject to transfer restrictions, valuations may be adjusted to reflect illiquidity and/or non-transferability, which are generally based on available market information.

Investments whose values are classified as Level 3 Prices have significant unobservable inputs, as they may trade infrequently or not at all. Investments whose values are classified as Level 3 Prices may include unlisted securities related to corporate actions, securities whose trading have been suspended or which have been de-listed from their primary trading exchange, less liquid corporate debt securities (including distressed debt instruments), collateralized debt obligations, and less liquid mortgage securities (backed by either commercial or residential real estate). When observable prices are not available for these securities, the Funds use one or more valuation techniques (e.g., the market approach or the income approach) for which sufficient and reliable data is available. Within Level 3 of the fair value hierarchy, the use of the market approach generally consists of using comparable market transactions, while the use of the income approach generally consists of the net present value of estimated future cash flows, adjusted as appropriate for liquidity, credit, market and/or other risk factors.

The inputs used by the Funds in estimating the value of Level 3 Prices may include the original transaction price, recent transactions in the same or similar instruments, completed or pending third-party transactions in the underlying investment or comparable issuers, and changes in financial ratios or cash flows. Level 3 Prices may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated by the Funds in the absence of market information. The fair value measurement of Level 3 Prices does not include transaction costs that may have been capitalized as part of the security’s cost basis. Assumptions used by the Funds due to the lack of observable inputs may significantly impact the resulting fair value and therefore the Funds’ results of operations.

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 underlying index, which in turn could result in a difference between the Fund’s performance and the performance of the Fund’s underlying index.

NOTES TO FINANCIAL STATEMENTS 75

Notes to Financial Statements (Continued)

iSHARES^® TRUST

The following table summarizes the values of each Fund’s investments according to the fair value hierarchy as of July 31, 2009. The breakdown of each Fund’s investments into major categories is disclosed in its respective Schedule of Investments:

	Investments in Securities
iShares Index Fund	Level 1		Level 2		Level 3		Total
S&P North American Technology Sector	$	335,381,778	$	–	$	–	$	335,381,778
S&P North American Technology-Multimedia Networking		169,008,958		–		–		169,008,958
S&P North American Technology-Semiconductors		235,029,884		–		–		235,029,884
S&P North American Technology-Software		307,748,738		–		–		307,748,738
S&P North American Natural Resources Sector		1,440,458,863		–		–		1,440,458,863
NYSE Composite		101,403,287		–		–		101,403,287
NYSE 100		64,594,932		–		–		64,594,932

SECURITY TRANSACTIONS AND INCOME RECOGNITION

Security transactions are accounted for on trade date. Dividend income is recognized on the ex-dividend date, net of any foreign taxes withheld at source, and interest income is accrued daily. Non-cash dividends received in the form of stock in an elective dividend, if any, are recorded as dividend income at fair value. 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

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, 2009, the tax year-end of the Funds, the components of net accumulated losses on a tax basis were as follows:

iShares Index Fund	Undistributed Ordinary Income		Unrealized Depreciation			Capital and Other Losses			Net Accumulated Losses
S&P North American Technology Sector	$	–	$	(69,152,335	)	$	(23,240,806	)	$	(92,393,141	)
S&P North American Technology-Multimedia Networking		–		(26,609,849	)		(59,379,236	)		(85,989,085	)
S&P North American Technology-Semiconductors		119,049		(69,526,258	)		(36,109,423	)		(105,516,632	)
S&P North American Technology-Software		–		(70,921,672	)		(38,220,911	)		(109,142,583	)
S&P North American Natural Resources Sector		832,553		(304,683,015	)		(107,994,035	)		(411,844,497	)
NYSE Composite		279,001		(38,851,265	)		(7,046,925	)		(45,619,189	)
NYSE 100		146,412		(21,399,443	)		(19,706,130	)		(40,959,161	)

76 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

For the years ended July 31, 2009 and July 31, 2008, the tax characterization of distributions paid for each Fund was equal to the book characterization of distributions paid. The total distributions and distributions per share are disclosed in the accompanying Statements of Changes in Net Assets and the Financial Highlights for all Funds.

FEDERAL INCOME TAXES

Each Fund is treated as a separate entity for federal income tax purposes. It is the policy of each Fund to qualify as a regulated investment company by complying with the provisions applicable to regulated investment companies, as defined under Subchapter M of the Internal Revenue Code of 1986, as amended, and to annually distribute substantially all of its ordinary income and any net capital 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, 2009.

From November 1, 2008 to July 31, 2009, 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, 2010, as follows:

iShares Index Fund	Deferred Net Realized Capital Losses
S&P North American Technology Sector	$	10,519,101
S&P North American Technology-Multimedia Networking		14,893,868
S&P North American Technology-Semiconductors		4,103,013
S&P North American Technology-Software		27,290,647
S&P North American Natural Resources Sector		84,691,073
NYSE Composite		5,199,190
NYSE 100		14,462,706

The Funds had tax basis net capital loss carryforwards as of July 31, 2009, the tax year-end of the Funds, as follows:

iShares Index Fund	Expiring 2010		Expiring 2011		Expiring 2012		Expiring 2013		Expiring 2014		Expiring 2015		Expiring 2016		Expiring 2017		Total
S&P North American Technology Sector	$	638,692	$	1,579,887	$	2,523,700	$	143,622	$	184,019	$	1,580,603	$	850,629	$	5,220,553	$	12,721,705
S&P North American Technology-Multimedia Networking		130,370		5,798,354		3,242,309		981,871		4,629,661		8,142,402		20,065,788		1,494,613		44,485,368
S&P North American Technology-Semiconductors		175,882		472,453		510,075		2,373		1,635,360		5,309,649		17,237,123		6,663,495		32,006,410
S&P North American Technology-Software		–		797,714		761,567		–		38,268		2,827,824		289,827		6,215,064		10,930,264
S&P North American Natural Resources Sector		–		256,427		187,450		–		1,870,831		785,924		2,497,939		17,704,391		23,302,962
NYSE Composite		–		–		–		–		–		8,687		506,184		1,332,864		1,847,735
NYSE 100		–		–		25,021		–		208,513		123,690		775,077		4,111,123		5,243,424

NOTES TO FINANCIAL STATEMENTS 77

Notes to Financial Statements (Continued)

iSHARES^® TRUST

Net capital loss carryforwards may be applied against any net realized taxable gains in each succeeding year or until their respective expiration 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 marked-to-market gains.

For the year ended July 31, 2009, 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, 2009 are disclosed in the Funds’ Statements of Operations.

As of July 31, 2009, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:

iShares Index Fund	Tax Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation			Net Unrealized Depreciation
S&P North American Technology Sector	$	404,534,113	$	–	$	(69,152,335	)	$	(69,152,335	)
S&P North American Technology-Multimedia Networking		195,618,807		–		(26,609,849	)		(26,609,849	)
S&P North American Technology-Semiconductors		304,556,142		–		(69,526,258	)		(69,526,258	)
S&P North American Technology-Software		378,670,410		725,370		(71,647,042	)		(70,921,672	)
S&P North American Natural Resources Sector		1,745,141,878		–		(304,683,015	)		(304,683,015	)
NYSE Composite		140,254,552		–		(38,851,265	)		(38,851,265	)
NYSE 100		85,994,375		482,961		(21,882,404	)		(21,399,443	)

Management has reviewed the tax positions as of July 31, 2009, inclusive of the prior three open tax return years, and has determined that no provision for income tax is required in the Funds’ financial statements.

2. AGREEMENTS AND OTHER TRANSACTIONS WITH AFFILIATES

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

For its investment advisory services to each of the iShares S&P North American Technology Sector, iShares S&P North American Technology-Multimedia Networking, iShares S&P North American Technology-Semiconductors, iShares S&P North American Technology-Software and

78 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

iShares S&P North American Natural Resources Sector Index Funds, BGFA is entitled to an annual investment advisory fee based on each Fund’s allocable portion of the aggregate of the average daily net assets of these Funds and certain other iShares Funds, as follows:

Investment Advisory Fee	Aggregate Average Daily Net Assets
0.48%	First $10 billion
0.43	Over $10 billion

For its investment advisory services to the iShares NYSE Composite and iShares NYSE 100 Index Funds, BGFA is entitled to an annual investment advisory fee based on the average daily net assets of each Fund as follows:

iShares Index Fund	Investment Advisory Fee
NYSE Composite	0.25	%
NYSE 100	0.20

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 Funds. 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, 2009, BGI earned securities lending agent fees as follows:

iShares Index Fund	Securities Lending Agent Fees
S&P North American Technology Sector	$	33,840
S&P North American Technology-Multimedia Networking		18,746
S&P North American Technology-Semiconductors		61,837
S&P North American Technology-Software		208,313
S&P North American Natural Resources Sector		260,752
NYSE Composite		42,402
NYSE 100		11,227

Cross trades for the year ended July 31, 2009, 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 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. These money market funds seek to achieve their investment objectives by investing in

NOTES TO FINANCIAL STATEMENTS 79

Notes to Financial Statements (Continued)

iSHARES^® TRUST

high-quality, short-term money market instruments that, at the time of investment, have remaining maturities of 397 calendar days or less from the date of acquisition. 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, 2009, 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:

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 Loss
Barclays PLC SP ADR	13	12	4	21	$	432,429	$	12,261	$	(49,191	)

Certain trustees and officers of the Trust are also officers of BGI and/or BGFA.

3. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the year ended July 31, 2009 were as follows:

iShares Index Fund	Purchases		Sales
S&P North American Technology Sector	$	25,362,730	$	23,069,079
S&P North American Technology-Multimedia Networking		28,559,128		25,162,882
S&P North American Technology-Semiconductors		21,983,356		21,709,116
S&P North American Technology-Software		71,308,164		71,371,838
S&P North American Natural Resources Sector		251,246,086		250,271,352
NYSE Composite		7,694,834		6,282,264
NYSE 100		11,010,109		10,294,391

80 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

In-kind transactions (see Note 4) for the year ended July 31, 2009 were as follows:

iShares Index Fund	In-kind Purchases		In-kind Sales
S&P North American Technology Sector	$	175,313,088	$	140,939,485
S&P North American Technology-Multimedia Networking		142,415,914		63,165,710
S&P North American Technology-Semiconductors		234,951,422		181,642,706
S&P North American Technology-Software		324,220,798		372,321,263
S&P North American Natural Resources Sector		527,736,703		643,167,028
NYSE Composite		34,224,740		19,404,287
NYSE 100		4,893,014		9,519,083

4. CAPITAL SHARE TRANSACTIONS

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 an optimized 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.

5. LOANS OF PORTFOLIO SECURITIES

Each Fund may lend its investment securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the market value of the loaned securities 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 include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. Any securities lending cash collateral may be reinvested in certain short-term instruments either directly on behalf of a Fund or through one or more joint accounts or money market funds, including those managed by BGFA; such reinvestments are subject to investment risk.

As of July 31, 2009, certain Funds had loaned securities which were collateralized by cash. The cash collateral received was invested in money market funds managed by BGFA. The market value of the securities on loan as of July 31, 2009 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.

6. BLACKROCK TRANSACTION

On June 16, 2009, Barclays PLC, the ultimate parent company of BGI and BGFA, accepted a binding offer and entered into an agreement to sell its interests in BGFA, BGI and certain affiliated companies, to BlackRock, Inc., (the “BlackRock Transaction”). The BlackRock Transaction is subject to certain regulatory approvals, as well as other conditions to closing.

NOTES TO FINANCIAL STATEMENTS 81

Notes to Financial Statements (Continued)

iSHARES^® TRUST

Under the 1940 Act, completion of the BlackRock Transaction will cause the automatic termination of each Fund’s current investment advisory agreement with BGFA. In order for the management of each Fund to continue uninterrupted, the Board approved a new investment advisory agreement for each Fund subject to shareholder approval. A special meeting of shareholders of the Funds is scheduled to be held on November 4, 2009. Each shareholder of record as of the close of business on August 25, 2009 will receive notice of and be entitled to vote at the meeting.

7. REVIEW OF SUBSEQUENT EVENTS

In connection with the preparation of the financial statements of the Funds as of and for the year ended July 31, 2009, events and transactions through September 22, 2009, the date the financial statements are available to be issued, have been evaluated by the Funds’ management for possible adjustment and/or disclosure. No subsequent events requiring financial statement disclosure have been identified.

82 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Trustees of

iShares Trust:

In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of the iShares S&P North American Technology Sector Index Fund, iShares S&P North American Technology-Multimedia Networking Index Fund, iShares S&P North American Technology-Semiconductors Index Fund, iShares S&P North American Technology-Software Index Fund, iShares S&P North American Natural Resources Sector Index Fund, iShares NYSE Composite Index Fund and iShares NYSE 100 Index Fund (the “Funds”), at July 31, 2009, the results of each of their operations and 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, 2009 by correspondence with the custodian, transfer agent and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California

September 22, 2009

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM 83

Tax Information (Unaudited)

iSHARES^® TRUST

For corporate shareholders, the following percentages of the income dividends paid by certain Funds during the fiscal year ended July 31, 2009 qualified for the dividends-received deduction:

iShares Index Fund	Dividends- Received Deduction
S&P North American Technology Sector	100.00	%
S&P North American Technology-Multimedia Networking	100.00
S&P North American Technology-Semiconductors	100.00
S&P North American Natural Resources Sector	100.00
NYSE Composite	56.60
NYSE 100	97.29

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, 2009:

iShares Index Fund	Qualified Dividend Income
S&P North American Technology Sector	$	1,327,608
S&P North American Technology-Multimedia Networking		198,517
S&P North American Technology-Semiconductors		1,480,896
S&P North American Natural Resources Sector		16,830,502
NYSE Composite		2,861,921
NYSE 100		2,064,996

In January 2010, shareholders will receive Form 1099-DIV which will include their share of qualified dividend income distributed during the calendar year 2009. Shareholders are advised to check with their tax advisers for information on the treatment of these amounts on their income tax returns.

84 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory Contract (Unaudited)

iSHARES^® TRUST

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 16-17, 2009, 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, no one of which was controlling, and made the following conclusions:

NATURE, EXTENT AND QUALITY OF SERVICES PROVIDED BY BGFA

Based on management’s representations, the Board expected that there will be no diminution in the scope of services required of or provided by 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 any of the Funds; therefore, directly comparable 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.

FUNDS’ EXPENSES AND PERFORMANCE OF THE FUNDS

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 registered investment companies objectively selected solely by Lipper as comprising such Fund’s applicable peer group pursuant to Lipper’s proprietary methodology and any registered investment companies that would otherwise have been excluded from Lipper’s comparison group due to certain differentiating factors, but were nonetheless included at the request of BGFA (the “Lipper Group”). 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 mutual funds, closed-end funds, exchange traded funds, or 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. In addition, the Board reviewed statistical information prepared by Lipper regarding the performance of each Fund for the one-, three- and five-year periods, and the “last quarter” period ended March 31, 2009, and a comparison of each Fund’s performance to its performance benchmark index for the same periods. To the extent that any of the comparison

BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT 85

Board Review and Approval of Investment Advisory Contract

(Unaudited) (Continued)

iSHARES^® TRUST

funds included in the Lipper Group track the same index as any particular Fund, Lipper also provided, and the Board reviewed, a comparison of such Fund’s performance to that of such relevant comparison funds for the same periods. The Board noted that the Funds generally performed in line with their respective performance benchmark indexes over the relevant 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 its benchmark 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 expenses of the funds in their respective Lipper Groups. 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 from the Funds’ operations 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 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.

ECONOMIES OF SCALE

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 investment advisory fee rates of the iShares NYSE Composite and NYSE 100 Index Funds, as the assets of those Funds increase. The Board noted that the Advisory Contract already provided for breakpoints for all other Funds as the assets of such Funds, on an aggregated basis with the assets of certain other iShares funds, increases. The Board noted that the asset size of all of the Funds except the iShares S&P North American Technology-Multimedia Networking Index Fund decreased over the past twelve months. The Board also reviewed BGFA’s historic profitability as investment adviser to the iShares fund complex and noted that BGFA had continued to make significant investments in the iShares fund complex, that expenses had grown at a pace similar to the growth in revenue, and that BGFA 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 for the Funds were not warranted at this juncture. Based on this review, as well as the discussions described above in connection with the Lipper Group and performance benchmark comparisons, the Board, recognizing its responsibility to consider this issue at least annually, concluded that the structure of the investment advisory fees for all the Funds reflects appropriate sharing of economies of scale with the Funds’ shareholders.

86 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory Contract

(Unaudited) (Continued)

iSHARES^® TRUST

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 directly comparable investment advisory/management fee information was not available for the Funds, as BGFA and its affiliates do not manage any Other Accounts with substantially similar investment objectives and strategies as any of 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.

OTHER BENEFITS TO BGFA AND/OR ITS AFFILIATES

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 investments by the Funds in other funds for which BGFA provides investment advisory services and/or BGI provides administration services. The Board noted that while revenue to BGI in connection with securities lending agency services to the iShares funds increased overall as against the previous year, overall revenue increased by approximately the same percentage as overall expenses. 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 or purchased from an underwriting syndicate in which a BGFA affiliate participates, are reported to the Board pursuant to Rule 17e-1 or Rule 10f-3, 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 thereunder, 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.

BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT 87

Supplemental Information (Unaudited)

iSHARES^® TRUST

The tables that follow present information about the differences between the daily market price on secondary markets for shares of 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 primary 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.

iShares S&P North American Technology Sector Index Fund

Period Covered: January 1, 2004 through June 30, 2009

Premium/Discount Range	Number of Days	Percentage of Total Days
Greater than 2.0%	1	0.07	%
Greater than 1.5% and Less than 2.0%	1	0.07
Greater than 1.0% and Less than 1.5%	3	0.22
Greater than 0.5% and Less than 1.0%	7	0.51
Between 0.5% and –0.5%	1,361	98.49
Less than –0.5% and Greater than –1.0%	6	0.43
Less than –1.0% and Greater than –1.5%	1	0.07
Less than –1.5% and Greater than –2.0%	1	0.07
Less than –2.0% and Greater than –2.5%	1	0.07
	1,382	100.00	%

88 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^® TRUST

iShares S&P North American Technology-Multimedia Networking Index Fund

Period Covered: January 1, 2004 through June 30, 2009

Premium/Discount Range	Number of Days	Percentage of Total Days
Greater than 1.5% and Less than 2.0%	2	0.14	%
Greater than 1.0% and Less than 1.5%	3	0.22
Greater than 0.5% and Less than 1.0%	14	1.01
Between 0.5% and –0.5%	1,351	97.76
Less than –0.5% and Greater than –1.0%	8	0.58
Less than –1.0%	4	0.29
	1,382	100.00	%

iShares S&P North American Technology-Semiconductors Index Fund

Period Covered: January 1, 2004 through June 30, 2009

Premium/Discount Range	Number of Days	Percentage of Total Days
Greater than 2.0%	1	0.07	%
Greater than 1.5% and Less than 2.0%	2	0.14
Greater than 1.0% and Less than 1.5%	3	0.22
Greater than 0.5% and Less than 1.0%	9	0.65
Between 0.5% and –0.5%	1,360	98.41
Less than –0.5% and Greater than –1.0%	4	0.29
Less than –1.0%	3	0.22
	1,382	100.00	%

iShares S&P North American Technology-Software Index Fund

Period Covered: January 1, 2004 through June 30, 2009

Premium/Discount Range	Number of Days	Percentage of Total Days
Greater than 2.0%	1	0.07	%
Greater than 1.5% and Less than 2.0%	2	0.14
Greater than 1.0% and Less than 1.5%	2	0.14
Greater than 0.5% and Less than 1.0%	8	0.58
Between 0.5% and –0.5%	1,359	98.36
Less than –0.5% and Greater than –1.0%	6	0.43
Less than –1.0% and Greater than –1.5%	2	0.14
Less than –1.5% and Greater than –2.0%	1	0.07
Less than –2.0%	1	0.07
	1,382	100.00	%

SUPPLEMENTAL INFORMATION 89

Supplemental Information (Unaudited) (Continued)

iSHARES^® TRUST

iShares S&P North American Natural Resources Sector Index Fund

Period Covered: January 1, 2004 through June 30, 2009

Premium/Discount Range	Number of Days	Percentage of Total Days
Greater than 1.5%	4	0.29	%
Greater than 1.0% and Less than 1.5%	1	0.07
Greater than 0.5% and Less than 1.0%	7	0.51
Between 0.5% and –0.5%	1,355	98.05
Less than –0.5% and Greater than –1.0%	10	0.72
Less than –1.0% and Greater than –1.5%	3	0.22
Less than –1.5%	2	0.14
	1,382	100.00	%

iShares NYSE Composite Index Fund

Period Covered: April 2, 2004 through June 30, 2009*

Premium/Discount Range	Number of Days	Percentage of Total Days
Greater than 1.5%	8	0.61	%
Greater than 1.0% and Less than 1.5%	7	0.53
Greater than 0.5% and Less than 1.0%	47	3.56
Between 0.5% and –0.5%	1,247	94.47
Less than –0.5% and Greater than –1.0%	7	0.53
Less than –1.0% and Greater than –1.5%	2	0.15
Less than –1.5%	2	0.15
	1,320	100.00	%

iShares NYSE 100 Index Fund

Period Covered: April 2, 2004 through June 30, 2009*

Premium/Discount Range	Number of Days	Percentage of Total Days
Greater than 2.5%	3	0.23	%
Greater than 2.0% and Less than 2.5%	1	0.08
Greater than 1.5% and Less than 2.0%	1	0.08
Greater than 1.0% and Less than 1.5%	1	0.08
Greater than 0.5% and Less than 1.0%	15	1.14
Between 0.5% and –0.5%	1,288	97.55
Less than –0.5% and Greater than –1.0%	8	0.61
Less than –1.0% and Greater than –1.5%	2	0.15
Less than –1.5%	1	0.08
	1,320	100.00	%

* April 2, 2004 is the first day of trading on the primary stock exchange on which the shares of the Fund are listed for trading.

90 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Trustee and Officer Information (Unaudited)

iSHARES^® TRUST

The Board of Trustees has responsibility for the overall management and operations of the Trust, including general supervision of the duties performed by BGFA and other service providers. Each Trustee serves until 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”) and Master Investment Portfolio (“MIP”) 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 179 portfolios within the fund complex. In addition, Lee T. Kranefuss serves as a Trustee for BGIF and MIP and oversees an additional 26 portfolios within the fund complex.

The address of each Trustee and Officer is c/o Barclays Global Investors, N.A., 400 Howard 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.

Interested Trustees and Officers

Name, Age	Position(s), Length of Service	Principal Occupation(s) During Past 5 Years	Other Directorships Held
*Lee T. Kranefuss, 47	Trustee and Chairman (since 2003).	Non-Executive Chairman (since 2009), iShares; Global Chief Executive Officer (2008-2009) of iShares/Intermediary Groups of BGI; Chief Executive Officer (2005-2008) of iShares Intermediary Index and Market Group of BGI; Chief Executive Officer (2003-2005) of the Intermediary Investor and Exchange Traded Products Business of BGI; Director (since 2005) of BGFA; Director, President and Chief Executive Officer (since 2005) of Barclays Global Investors International, Inc.; Director and Chairman (since 2005) of Barclays Global Investors Services.	Director (since 2003) of iShares, Inc.; Trustee (since 2001) of BGIF and MIP.

* Lee T. Kranefuss is deemed to be an “interested person” (as defined in the 1940 Act) of the Trust due to his affiliations with BGFA, the Funds’ investment adviser; BGI, the parent company of BGFA; and Barclays Global Investors Services, an affiliate of BGFA and BGI.

TRUSTEE AND OFFICER INFORMATION 91

Trustee and Officer Information (Unaudited) (Continued)

iSHARES^® TRUST

Independent Trustees
Name, Age	Position(s), Length of Service	Principal Occupation(s) During Past 5 Years	Other Directorships Held
George G.C. Parker, 70	Trustee (since 2000); Lead Independent Trustee (since 2006).	Dean Witter Distinguished Professor of Finance (since 1994), Emeritus, Stanford University: Graduate School of Business.	Director (since 2002) of iShares, Inc.; Lead Independent Director (since 2006) of iShares, Inc.; Director (since 1995) of Community First Financial Group; Director (since 1999) of Tejon Ranch Company; Director (since 2004) of Threshold Pharmaceuticals; Director (since 2007) of NETGEAR, Inc.
J. Darrell Duffie, 55	Trustee (since 2008).	Professor (since 1984) of Stanford University: Graduate School of Business.	Director (since 2008) of iShares, Inc.; Director (since 2008) of Moody’s Corp.
Cecilia H. Herbert, 60	Trustee (since 2005).	Chair (1994-2005) of Investment Committee, Archdiocese of San Francisco; Director (since 1998) and President (since 2007) of the Board of Directors, Catholic Charities CYO; Trustee (2004-2005) of Pacific Select Funds; Trustee (since 2002) and Chair (2006-2007) of the Finance and Investment Committees (since 2006) of the Thacher School.	Director (since 2005) of iShares, Inc.; Advisory Board Member (since 2009) of Forward Funds.
Charles A. Hurty, 65	Trustee (since 2005).	Retired. Partner, KPMG LLP (1968-2001).	Director (since 2005) of iShares, Inc.; Director (since 2002) of ProMark Absolute Return Strategies Fund LLC (1 portfolio); Director (since 2002) of Citigroup Alternative Investments Multi-Adviser Hedge Fund Portfolios LLC (1 portfolio); Director (since 2005) of CSFB Alternative Investments Fund (6 portfolios).
John E. Kerrigan, 54	Trustee (since 2005).	Chief Investment Officer (since 2002) of Santa Clara University.	Director (since 2005) of iShares, Inc.
*John E. Martinez, 48	Trustee (since 2003).	Director (since 2005) of EquityRock Capital Management; Director (since 2003) of Larkin Street Youth Services.	Director (since 2003) of iShares, Inc.; Chairman (since 2007) of Independent Review Committee, Canadian iShares Funds.

92 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Trustee and Officer Information (Unaudited) (Continued)

iSHARES^® TRUST

Independent Trustees (Continued)

Name, Age	Position(s), Length of Service	Principal Occupation(s) During Past 5 Years	Other Directorships Held
Robert H. Silver, 54	Trustee (since 2007).	President and Co-Founder (since 2006) of The Bravitas Group, Inc.; Member (since 2006) of Non-Investor Advisory Board of Russia Partners II, LP; Director and member (2006-2009) of the Audit and Compensation Committee of EPAM Systems, Inc.; President and Chief Operating Officer (2003-2005) and Director (1999-2005) of UBS Financial Services, Inc.; President and Chief Executive Officer (1999-2005) of UBS Services USA, LLC; Managing Director (2000-2005) of UBS America, Inc.; Director and Vice Chairman (since 2001) of the YMCA of Greater NYC; Broadway Producer (since 2006); Co- Founder and Vice President (since 2008) of Parentgiving Inc.	Director (since 2007) of iShares, Inc.

* Prior to August 13, 2009, John E. Martinez was deemed to be an “interested person” (as defined in the 1940 Act) of the Trust due to his affiliations with BGFA, the Funds’ investment adviser; BGI, the parent company of BGFA; and Barclays Global Investors Services, an affiliate of BGFA and BGI. Effective August 13, 2009, John E. Martinez is a non-interested person notwithstanding his former affiliation with the BGFA and its affiliates prior to 2002.

Officers

Name, Age	Position(s), Length of Service	Principal Occupation(s) During Past 5 Years	Other Directorships Held
Michael A. Latham, 43	President (since 2007).	Head (since 2007) of Americas iShares, BGI; Chief Operating Officer (2003-2007) of the Intermediary Investor and Exchange Traded Products Business of BGI; Director and Chief Financial Officer (since 2005) of Barclays Global Investors International, Inc.	None.
Geoffrey D. Flynn, 52	Executive Vice President and Chief Operating Officer (since 2008).	Chief Operating Officer (since 2008) of U.S. iShares, BGI; Director (2007-2008) of Mutual Fund Operations of BGI; President (2003-2007) of Van Kampen Investors Services; Managing Director (2002-2007) of Morgan Stanley; President (2002-2007) of Morgan Stanley Trust, FSB.	None.

TRUSTEE AND OFFICER INFORMATION 93

Trustee and Officer Information (Unaudited) (Continued)

iSHARES^® TRUST

Officers (Continued)

Name, Age	Position(s), Length of Service	Principal Occupation(s) During Past 5 Years	Other Directorships Held
Jack Gee, 49	Treasurer and Chief Financial Officer (since 2008).	Senior Director (since 2009) of Fund Administration of Intermediary Investor Business of BGI; Director (2004-2009) of Fund Administration of Intermediary Investor Business of BGI; Treasurer and Chief Financial Officer (2004) of Parnassus Investments.	None.
Eilleen M. Clavere, 57	Secretary (since 2007).	Director (since 2006) of Legal Administration of Intermediary Investor Business of BGI; Legal Counsel and Vice President (2005-2006) of Atlas Funds, Atlas Advisers, Inc. and Atlas Securities, Inc.; Counsel (2001-2005) of Kirkpatrick & Lockhart LLP.	None.
Ira P. Shapiro, 46	Vice President and Chief Legal Officer (since 2007).	Associate General Counsel (since 2004) of BGI; First Vice President (1993-2004) of Merrill Lynch Investment Managers.	None.
Amy Schioldager, 46	Executive Vice President (since 2007).	Global Head (since 2008) of Index Equity, BGI; Global Head (since 2006-2008) of U.S. Indexing, BGI; Head (2001-2006) of Domestic Equity Portfolio Management, BGI.	None.
Patrick O’Connor, 41	Vice President (since 2007).	Head (since 2006) of iShares Portfolio Management, BGI; Senior Portfolio Manager (1999-2006) of BGI.	None.
Lee Sterne, 43	Vice President (since 2007).	Head (since 2007) of U.S. Fixed Income Index and iShares, BGI; Senior Portfolio Manager (2004-2007) of BGI; Portfolio Manager (2001-2004) of BGI.	None.
Matt Tucker, 36	Vice President (since 2007).	Director (since 2009) of Fixed Income Investment Strategy, BGI; Head (2005-2008) of U.S. Fixed Income Investment Solutions, BGI; Fixed Income Investment Strategist (2003-2005) of BGI.	None.

94 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes:

NOTES 95

The iShares^® Family of Funds

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

iShares Russell Domestic Index Funds	Trading Symbol
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 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 Morningstar Domestic 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 Dow Jones Domestic Index Funds
iShares Dow Jones U.S.	IYY
iShares KLD Socially Responsible Index Funds
iShares FTSE KLD 400 Social	DSI
iShares FTSE KLD Select Social	KLD
iShares NYSE Domestic Index Funds
iShares NYSE Composite	NYC
iShares NYSE 100	NY
iShares Domestic Specialty Index Funds
iShares S&P U.S. Preferred Stock	PFF
iShares Dow Jones Select Dividend	DVY

iShares North American Sector/Subsector Index Funds	Trading Symbol
iShares S&P North American Technology Sector	IGM
iShares S&P North American Technology-Multimedia Networking	IGN
iShares S&P North American Technology- Semiconductors	IGW
iShares S&P North American Technology-Software	IGV
iShares S&P North American Natural Resources Sector	IGE
iShares U.S. Domestic Sector Index Funds
iShares Dow Jones U.S. Basic Materials Sector	IYM
iShares Dow Jones U.S. Consumer Goods Sector	IYK
iShares Dow Jones U.S. Consumer Services Sector	IYC
iShares Dow Jones U.S. Energy Sector	IYE
iShares Dow Jones U.S. Financial Sector	IYF
iShares Dow Jones U.S. Healthcare Sector	IYH
iShares Dow Jones U.S. Industrial Sector	IYJ
iShares Dow Jones U.S. Technology Sector	IYW
iShares Dow Jones U.S. Telecommunications Sector	IYZ
iShares Dow Jones U.S. Utilities Sector	IDU
iShares Domestic Subsector Index Funds
iShares Dow Jones Transportation Average	IYT
iShares Dow Jones U.S. Aerospace & Defense	ITA
iShares Dow Jones U.S. Broker-Dealers	IAI
iShares Dow Jones U.S. Financial Services	IYG
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 Nasdaq Biotechnology	IBB
iShares Domestic Real Estate Index Funds
iShares Cohen & Steers Realty Majors	ICF
iShares Dow Jones U.S. Real Estate	IYR
iShares FTSE NAREIT Real Estate 50	FTY
iShares FTSE NAREIT Industrial/Office Capped	FIO
iShares FTSE NAREIT Mortgage Plus Capped	REM
iShares FTSE NAREIT Residential Plus Capped	REZ
iShares FTSE NAREIT Retail Capped	RTL
iShares Target Risk Index Funds
iShares S&P Conservative Allocation	AOK
iShares S&P Moderate Allocation	AOM
iShares S&P Growth Allocation	AOR
iShares S&P Aggressive Allocation	AOA

96 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

The iShares^® Family of Funds (Continued)

iShares International Country Index Funds	Trading Symbol
iShares FTSE China (HK Listed)	FCHI
iShares FTSE/Xinhua China 25	FXI
iShares MSCI Australia	EWA
iShares MSCI Austria Investable Market	EWO
iShares MSCI Belgium Investable Market	EWK
iShares MSCI Brazil	EWZ
iShares MSCI Canada	EWC
iShares MSCI Chile Investable Market	ECH
iShares MSCI France	EWQ
iShares MSCI Germany	EWG
iShares MSCI Hong Kong	EWH
iShares MSCI Israel Capped Investable Market	EIS
iShares MSCI Italy	EWI
iShares MSCI Japan	EWJ
iShares MSCI Japan Small Cap	SCJ
iShares S&P/TOPIX 150	ITF
iShares MSCI Malaysia	EWM
iShares MSCI Mexico Investable Market	EWW
iShares MSCI Netherlands Investable Market	EWN
iShares MSCI All Peru Capped	EPU
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 Thailand Investable Market	THD
iShares MSCI Turkey Investable Market	TUR
iShares MSCI United Kingdom	EWU
iShares International Index Funds
iShares MSCI ACWI ex US	ACWX
iShares MSCI EAFE	EFA
iShares MSCI EAFE Growth	EFG
iShares MSCI EAFE Value	EFV
iShares MSCI EAFE Small Cap	SCZ
iShares FTSE Developed Small Cap ex-North America	IFSM
iShares MSCI Emerging Markets	EEM
iShares S&P Emerging Markets Infrastructure	EMIF
iShares MSCI BRIC	BKF
iShares MSCI EMU	EZU
iShares MSCI All Country Asia ex Japan	AAXJ
iShares MSCI Pacific ex-Japan	EPP
iShares S&P Asia 50	AIA
iShares S&P Europe 350	IEV
iShares S&P Latin America 40	ILF
iShares International/Global Real Estate Index Funds
iShares S&P Developed ex-U.S. Property	WPS
iShares FTSE EPRA/NAREIT Developed Real Estate ex-U.S.	IFGL
iShares FTSE EPRA/NAREIT Developed Asia	IFAS
iShares FTSE EPRA/NAREIT Developed Europe	IFEU
iShares FTSE EPRA/NAREIT North America	IFNA
iShares International Specialty Index Funds
iShares Dow Jones International Select Dividend	IDV

iShares Target Date Index Funds	Trading Symbol
iShares S&P Target Date Retirement Income	TGR
iShares S&P Target Date 2010	TZD
iShares S&P Target Date 2015	TZE
iShares S&P Target Date 2020	TZG
iShares S&P Target Date 2025	TZI
iShares S&P Target Date 2030	TZL
iShares S&P Target Date 2035	TZO
iShares S&P Target Date 2040	TZV
iShares Global Index Funds
iShares MSCI ACWI	ACWI
iShares S&P Global 100	IOO
iShares MSCI Kokusai	TOK
iShares Global Sector Index Funds
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 Global Theme Based Index Funds
iShares S&P Global Clean Energy	ICLN
iShares S&P Global Infrastructure	IGF
iShares S&P Global Nuclear Energy	NUCL
iShares S&P Global Timber & Forestry	WOOD
iShares U.S. Multisector Bond Funds
iShares Barclays Aggregate	AGG
iShares Barclays Government/Credit	GBF
iShares Barclays Intermediate Government/Credit	GVI
iShares U.S. Government Bond Funds
iShares Barclays Short Treasury	SHV
iShares Barclays 1-3 Year Treasury	SHY
iShares Barclays 3-7 Year Treasury	IEI
iShares Barclays 7-10 Year Treasury	IEF
iShares Barclays 10-20 Year Treasury	TLH
iShares Barclays 20+ Year Treasury	TLT
iShares Barclays TIPS	TIP
iShares Barclays Agency	AGZ
iShares U.S. Credit Bond Funds
iShares Barclays Credit	CFT
iShares Barclays 1-3 Year Credit	CSJ
iShares Barclays Intermediate Credit	CIU
iShares iBoxx $ Investment Grade Corporate	LQD
iShares iBoxx $ High Yield Corporate	HYG
iShares U.S. Securitized Bond Funds
iShares Barclays MBS	MBB

iSHARES FAMILY OF FUNDS 97

The iShares^® Family of Funds (Continued)

iShares AMT-Free Municipal Bond Funds	Trading Symbol
iShares S&P National AMT-Free Municipal	MUB
iShares S&P Short Term National AMT-Free Municipal	SUB
iShares S&P California AMT-Free Municipal	CMF
iShares S&P New York AMT-Free Municipal	NYF

iShares International Bond Funds	Trading Symbol
iShares JPMorgan USD Emerging Markets	EMB
iShares S&P/Citigroup International Treasury	IGOV
iShares S&P/Citigroup 1-3 Year International Treasury	ISHG

iShares^® is a registered trademark of Barclays Global Investors, N.A. (“BGI”). The iShares Funds are not sponsored, endorsed, issued, sold or promoted by Cohen & Steers Capital Management, Inc., Dow Jones & Company, Inc., European Public Real Estate Association (“EPRA^®”), FTSE International Limited (“FTSE”), FTSE/Xinhua Index Limited (“FXI”), iBoxx^®, J.P. Morgan Securities Inc., MSCI Inc., Morningstar Inc., The NASDAQ OMX Group, Inc., National Association of Real Estate Investment Trusts (“NAREIT”), New York Stock Exchange, Inc., Frank Russell Company or Standard & Poor’s, nor are they sponsored or endorsed by Barclays Capital. 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 except Barclays Capital, which is an affiliate of BGI. 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/Residential/Retail/Mortgage REITs or Industrial/Office Index; all rights vest in NAREIT. Neither FTSE nor NAREIT makes any warranty regarding the FTSE EPRA/NAREIT Global Real Estate ex-US/North America/Europe/Asia Index; all rights vest in FTSE, NAREIT, and EPRA. All rights in the FTSE Developed Small Cap ex-North America Index vest in FTSE. “FTSE” is a trade- and servicemark of London Stock Exchange and The Financial Times Limited; “Xinhua” is a trade- and servicemark of Xinhua Financial Network Limited. “NAREIT^®” is a trademark of NAREIT; “EPRA^®” is a trademark of EPRA.

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

This advertising section does not constitute part of the 2009 Annual Report.

iS-1241-0909

98 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

For more information:

WWW.iSHARES.COM

1-800-iShares(1-800-474-2737)

The iShares Funds are distributed by SEI Investments Distribution Co. (SEI). Barclays Global Fund Advisors (BGFA) serves as an advisor to the iShares Funds. BGFA is a subsidiary of Barclays Global Investors, N.A. (BGI), neither of which is affiliated with SEI.

The iShares Funds are not sponsored, endorsed, issued, sold or promoted by Standard & Poor’s or New York Stock Exchange, Inc., nor do 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.

©2009 Barclays Global Investors. All rights reserved. iShares® is a registered trademark of Barclays Global Investors, N.A. All other trademarks, servicemarks or registered trademarks are the property of their respective owners.

Investing involves risk, including possible loss of principal.

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

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

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

iShares®

LET’S BUILD A BETTER INVESTMENT WORLD®.

BARCLAYS

GLOBAL INVESTORS

BGI-AR-71-0709

2009 ANNUAL REPORT TO SHAREHOLDERS

iSHARES® FTSE/XINHUA CHINA 25 INDEX FUND S FTSE SERIES

iSHARES® MSCI SERIES

JULY 31, 2009

Would you prefer to receive materials like this electronically?

See inside cover for details.

iShares FTSE Developed Small Cap ex-North America Index Fund

iShares FTSE/Xinhua China 25 Index Fund

iShares FTSE China (HK Listed) Index Fund

iShares MSCI ACWI Index Fund

iShares MSCI ACWI ex US Index Fund

iShares MSCI All Country Asia ex Japan Index Fund

iShares MSCI EAFE Growth Index Fund

iShares MSCI EAFE Value Index Fund

iShares MSCI EAFE Small Cap Index Fund

iShares MSCI Kokusai Index Fund

iSHARES®

iSHARES®

Dear iShares Shareholder:

Electronic delivery is the easiest, most convenient way to receive reporting on your iShares holdings. In addition, it’s a way we can all care for our environment. To that end, we are pleased to offer shareholder reports and prospectuses online.

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

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Once you have enrolled, you will no longer receive prospectuses and shareholder reports in the mail. Instead, you will receive e-mail notifications announcing that the shareholder report or prospectus has been posted on the iShares website at www.iShares.com.

Table of Contents

Management’s Discussions of Fund Performance	1
Shareholder Expenses (Unaudited)	31
Schedules of Investments	33
iShares FTSE Developed Small Cap ex-North America Index Fund	33
iShares FTSE/Xinhua China 25 Index Fund	42
iShares FTSE China (HK Listed) Index Fund	44
iShares MSCI ACWI Index Fund	47
iShares MSCI ACWI ex US Index Fund	58
iShares MSCI All Country Asia ex Japan Index Fund	69
iShares MSCI EAFE Growth Index Fund	74
iShares MSCI EAFE Value Index Fund	83
iShares MSCI EAFE Small Cap Index Fund	92
iShares MSCI Kokusai Index Fund	102
Financial Statements	118
Financial Highlights	129
Notes to Financial Statements	139
Report of Independent Registered Public Accounting Firm	150
Tax Information (Unaudited)	151
Board Review and Approval of Investment Advisory Contract (Unaudited)	152
Supplemental Information (Unaudited)	158
Trustee and Officer Information (Unaudited)	166
iShares Family of Funds	172

Management’s Discussion of Fund Performance

iSHARES^® FTSE DEVELOPED SMALL CAP EX-NORTH AMERICA INDEX FUND

(TICKER: IFSM)

INVESTMENT OBJECTIVE

The iShares FTSE Developed Small Cap ex-North America Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the FTSE Developed Small Cap ex-North America Index (the “Index”). The Index measures the stock performance of small-capitalization companies in developed countries outside of North America, as defined by FTSE International Limited. 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, 2009 (the “reporting period”), the total return for the Fund was (23.06)%, while the total return for the Index was (22.25)%.

MARKET OVERVIEW AND DISCUSSION OF PERFORMANCE

Most international markets declined during the reporting period, as reduced U.S. consumer spending exerted downward pressure on European and Japanese exporters. Global credit remained tight, making it difficult for businesses to expand. Europe’s unemployment rate hit 9.4% in June, its highest in ten years and the region’s gross domestic product (“GDP”) declined during the period. On the positive side, inflation in the “Eurozone” was historically low at the end of the reporting period. Meanwhile, the United Kingdom economy also declined, but more moderately than in Continental Europe.

In Japan, exports dropped about 50% in the first half of 2009, as GDP declined a record 13.5% during the fourth quarter of 2008 and 14.2% in the first quarter of 2009. However, Japan’s economy was showing signs of recovery by June. Manufacturers were boosting production after months of cutbacks. The yen also strengthened. In addition, the Bank of Japan declared the economy was showing signs of “leveling out.”

Overall, most market capitalizations and investment styles posted negative returns for the reporting period. However, markets rallied late in the period, helping to mitigate declines for the fiscal year, as business conditions appeared to gradually improve.

The ten largest holdings of the Fund represented approximately 5% of Fund net assets as of July 31, 2009. Although the overall performance of the Fund was negative during the reporting period, several companies in the top ten posted positive performance including three companies based in Japan: Ryosan Co. Ltd. (electronic components and equipment), Kagome Co. Ltd. (food and beverage producer) and The Toho Bank Ltd. (banking). PSP Swiss Property AG, which primarily owns office buildings in Switzerland’s largest cities, delivered the largest negative return for the reporting period.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 1

Management’s Discussion of Fund Performance (Continued)

iSHARES^® FTSE DEVELOPED SMALL CAP EX-NORTH AMERICA INDEX FUND

Performance as of July 31, 2009

Average Annual Total Returns						Cumulative Total Returns
Year Ended 7/31/09			Inception to 7/31/09			Inception to 7/31/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(23.06)%	(23.36)%	(22.25)%	(23.91)%	(23.95)%	(23.17)%	(37.50)%	(37.57)%	(36.46)%

Total returns for the period since inception are calculated from the inception date of the Fund (11/12/07). “Average Annual Total Returns” represent the average annual change in value of an investment over the period(s) indicated. “Cumulative Total Returns” represent the total change in value of an investment over the period(s) 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 primary 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 after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (11/16/07), the NAV of the Fund is used as a proxy for the Market 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 performance shown in the table(s) and chart(s) above 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 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.

2 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® FTSE DEVELOPED SMALL CAP EX-NORTH AMERICA INDEX FUND

PORTFOLIO ALLOCATION As of 7/31/09
Sector	Percentage of Net Assets
Industrial	20.94	%
Financial	20.72
Consumer Non-Cyclical	15.71
Consumer Cyclical	14.50
Energy	6.67
Basic Materials	6.49
Technology	6.06
Communications	5.82
Diversified	1.80
Utilities	0.92
Short-Term and Other Net Assets	0.37
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 7/31/09
Security	Percentage of Net Assets
Kureha Corp. (Japan)	0.59	%
Ryosan Co. Ltd. (Japan)	0.57
Toho Bank Ltd. (The) (Japan)	0.54
Kisoji Co. Ltd. (Japan)	0.53
Randgold Resources Ltd. (United Kingdom)	0.51
Kagome Co. Ltd. (Japan)	0.51
Basler Kantonalbank Participation Certificates (Switzerland)	0.48
PSP Swiss Property AG Registered (Switzerland)	0.48
SCOR SE (France)	0.44
Inmarsat PLC (United Kingdom)	0.43
TOTAL	5.08	%

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 3

Management’s Discussion of Fund Performance

iSHARES^® FTSE/XINHUA CHINA 25 INDEX FUND

(TICKER: FXI)

INVESTMENT OBJECTIVE

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 Chinese equity market that are available to international investors. The Index consists 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, 2009 (the “reporting period”), the total return for the Fund was (5.86)%, while the total return for the Index was (5.06)%.

MARKET OVERVIEW AND DISCUSSION OF PERFORMANCE

China’s stock market declined modestly during the reporting period, struggling during the first part of the period but then rallying sharply in the latter half.

Unlike many other countries, China’s economy did not experience a recession during the period. Its worst performance was in the first quarter of 2009, when gross domestic product (“GDP”) grew about 6%. With its surplus, the Chinese government launched a stimulus program that benefited the country’s infrastructure industries such as steelmakers, cement producers and construction companies. The real estate market, which had been weak for more than a year, recovered strongly, as did automobile sales. During the second quarter of 2009, China’s economy grew by about 8% compared to the same period last year.

Bank loans nearly tripled in the first seven months of 2009 compared to the same period in 2008. To combat potential inflation, the People’s Bank of China, which is the country’s central bank, initiated steps towards a tightened monetary policy in July, increasing the interest paid on short-term government securities. State-controlled banks reined in new lending in July, with volume dropping 77% from a month earlier.

Despite the apparent strength of the Chinese economy, Chinese exports continued to decline throughout most of the reporting period. On the other hand, the domestic economy was quite strong, with industrial output expanding nearly 11% in July from the year before, and fixed asset investment growth rising 33% from a year earlier.

Among the ten largest holdings of the Fund as of July 31, 2009, performance was mixed for the reporting period, with four out of the ten posting positive results. The most positive performers included Ping An Insurance (Group) Co. of China Ltd. and China Life Insurance Co. Ltd. On the negative side, China Mobile Ltd. and BOC Hong Kong (Holdings) Ltd. posted the largest declines.

4 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® FTSE/XINHUA CHINA 25 INDEX FUND

Performance as of July 31, 2009

Average Annual Total Returns						Cumulative Total Returns
Year Ended 7/31/09			Inception to 7/31/09			Inception to 7/31/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(5.86)%	(4.80)%	(5.06)%	21.28%	21.13%	21.73%	153.58%	151.99%	158.25%

Total returns for the period 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 period(s) indicated. “Cumulative Total Returns” represent the total change in value of an investment over the period(s) 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 primary 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 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 Market 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 performance shown in the table(s) and chart(s) above 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 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.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 5

Management’s Discussion of Fund Performance (Continued)

iSHARES^® FTSE/XINHUA CHINA 25 INDEX FUND

PORTFOLIO ALLOCATION As of 7/31/09
Sector	Percentage of Net Assets
Financial	49.26	%
Energy	19.06
Communications	17.30
Industrial	6.64
Basic Materials	4.14
Utilities	2.28
Consumer Cyclical	1.06
Short-Term and Other Net Assets	0.26
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 7/31/09
Security	Percentage of Net Assets
China Mobile Ltd.	9.72	%
China Construction Bank Class H	8.86
China Life Insurance Co. Ltd. Class H	8.07
Industrial and Commercial Bank of China Ltd. Class H	6.80
Bank of China Ltd. Class H	5.89
BOC Hong Kong (Holdings) Ltd.	4.27
Ping An Insurance (Group) Co. of China Ltd. Class H	4.21
China Shenhua Energy Co. Ltd. Class H	4.20
PetroChina Co. Ltd. Class H	4.06
China Petroleum & Chemical Corp. Class H	4.01
TOTAL	60.09	%

6 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance

iSHARES^® FTSE CHINA (HK LISTED) INDEX FUND

(TICKER: FCHI)

INVESTMENT OBJECTIVE

The iShares FTSE China (HK Listed) Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the FTSE China (HK Listed) Index™ (the “Index”). The Index is designed to track the performance of the large- and mid-capitalization companies in the Chinese equity market that are available to international investors. The Index consists of many 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, 2009 (the “reporting period”), the total return for the Fund was (3.26)%, while the total return for the Index was (1.44)%.

MARKET OVERVIEW AND DISCUSSION OF PERFORMANCE

China’s stock market declined modestly during the reporting period, struggling during the first part of the period but then rallying sharply in the latter half.

Unlike many other countries, China’s economy did not experience a recession during the period. Its worst performance was in the first quarter of 2009, when gross domestic product (“GDP”) grew about 6%. With its surplus, the Chinese government launched a stimulus program that benefited the country’s infrastructure industries such as steelmakers, cement producers and construction companies. The real estate market, which had been weak for more than a year, recovered strongly, as did automobile sales. During the second quarter of 2009, China’s economy grew by about 8% compared to the same period last year.

Bank loans nearly tripled in the first seven months of 2009 compared to the same period in 2008. To combat potential inflation, the People’s Bank of China, which is the country’s central bank, initiated steps towards a tightened monetary policy in July, increasing the interest paid on short-term government securities. State-controlled banks reined in new lending in July, with volume dropping 77% from a month earlier.

Despite the apparent strength of the Chinese economy, Chinese exports continued to decline throughout most of the reporting period. On the other hand, the domestic economy was quite strong, with industrial output expanding nearly 11% in July from the year before, and fixed asset investment growth rising 33% from a year earlier.

Among the ten largest holdings of the Fund as of July 31, 2009, performance was mostly negative for the reporting period. Three out of the ten posted positive results, including Ping An Insurance (Group) Co. of China Ltd., China Life Insurance Co. Ltd. and Bank of China Ltd. On the negative side, China Mobile Ltd. and China Petroleum & Chemical Corp. endured the largest declines.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 7

Management’s Discussion of Fund Performance (Continued)

iSHARES^® FTSE CHINA (HK LISTED) INDEX FUND

Performance as of July 31, 2009

Average Annual Total Returns						Cumulative Total Returns
Year Ended 7/31/09			Inception to 7/31/09			Inception to 7/31/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(3.26)%	(2.03)%	(1.44)%	(1.83)%	(2.04)%	(0.12)%	(2.02)%	(2.25)%	(0.13)%

Total returns for the period since inception are calculated from the inception date of the Fund (6/24/08). “Average Annual Total Returns” represent the average annual change in value of an investment over the period(s) indicated. “Cumulative Total Returns” represent the total change in value of an investment over the period(s) 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 primary 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 after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (6/25/08), the NAV of the Fund is used as a proxy for the Market 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 performance shown in the table(s) and chart(s) above 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 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.

8 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® FTSE CHINA (HK LISTED) INDEX FUND

PORTFOLIO ALLOCATION As of 7/31/09
Sector	Percentage of Net Assets
Financial	43.23	%
Energy	17.55
Communications	16.85
Industrial	8.61
Basic Materials	3.52
Diversified	3.38
Consumer Cyclical	2.15
Utilities	1.96
Consumer Non-Cyclical	1.88
Technology	0.68
Short-Term and Other Net Assets	0.19
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 7/31/09
Security	Percentage of Net Assets
China Mobile Ltd.	12.39	%
China Construction Bank Class H	10.60
China Life Insurance Co. Ltd. Class H	6.35
Bank of China Ltd. Class H	5.80
Industrial and Commercial Bank of China Ltd. Class H	5.75
PetroChina Co. Ltd. Class H	4.86
CNOOC Ltd.	4.36
Ping An Insurance (Group) Co. of China Ltd. Class H	3.46
China Petroleum & Chemical Corp. Class H	3.03
China Shenhua Energy Co. Ltd. Class H	2.88
TOTAL	59.48	%

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 9

Management’s Discussion of Fund Performance

iSHARES^® MSCI ACWI INDEX FUND

(TICKER: ACWI)

INVESTMENT OBJECTIVE

The iShares MSCI ACWI Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI All Country World Index (the “Index”). The Index is a free float-adjusted market capitalization index designed to measure the combined equity market performance of developed and emerging markets countries. 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, 2009 (the “reporting period”), the total return for the Fund was (20.31)%, while the total return for the Index was (21.05)%.

MARKET OVERVIEW AND DISCUSSION OF PERFORMANCE

The U.S. economy began to show signs of stability as the reporting period drew to a close. Second quarter 2009 gross domestic product (“GDP”) was down only 1% after declining at a 6.4% annualized rate in the first quarter 2009 and a 5.8% annualized rate in the fourth quarter of 2008. Stock markets began to rally in March 2009, as business conditions appeared to gradually improve. However, U.S. unemployment remained high, and the federal budget deficit reached record levels.

Most international markets declined during the reporting period, as reduced U.S. consumer spending exerted downward pressure on European and Japanese exporters. Europe’s unemployment rate hit 9.4% in June, the highest rate in ten years, as the region’s GDP declined during the period. On the positive side, inflation in the “Eurozone” was historically low at the end of the reporting period. Meanwhile, the United Kingdom economy also declined, although more moderately than in Continental Europe.

Japan’s exports dropped about 50% in the first half of 2009 and GDP declined a record 13.5% during the fourth quarter of 2008 and 14.2% in the first quarter of 2009. However, Japan’s economy was showing signs of recovery by June. Manufacturers were boosting production after months of cutbacks. The yen also strengthened. The Bank of Japan declared the economy was showing signs of “leveling out.” Other Asian markets saw declining growth. For example, China’s first quarter 2009 GDP advanced 6.1%, its slowest rate in a decade.

The ten largest holdings of the Fund represented approximately 8% of Fund net assets as of July 31, 2009. The overall performance of the Fund was negative during the reporting period. Only one company out of the top ten delivered a positive return as of July 31, 2009 – Apple Inc., the California-based manufacturer of computers and portable music players. HSBC Holdings PLC (banking) and BP PLC (energy) posted the largest negative returns.

10 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI ACWI INDEX FUND

Performance as of July 31, 2009

Average Annual Total Returns						Cumulative Total Returns
Year Ended 7/31/09			Inception to 7/31/09			Inception to 7/31/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(20.31)%	(19.77)%	(21.05)%	(18.04)%	(17.79)%	(18.92)%	(23.57)%	(23.24)%	(24.67)%

Total returns for the period since inception are calculated from the inception date of the Fund (3/26/08). “Average Annual Total Returns” represent the average annual change in value of an investment over the period(s) indicated. “Cumulative Total Returns” represent the total change in value of an investment over the period(s) 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 primary 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 after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (3/28/08), the NAV of the Fund is used as a proxy for the Market 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 performance shown in the table(s) and chart(s) above 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 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.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 11

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI ACWI INDEX FUND

PORTFOLIO ALLOCATION As of 7/31/09
Sector	Percentage of Net Assets
Financial	19.82	%
Consumer Non-Cyclical	18.83
Energy	11.67
Industrial	10.25
Communications	10.19
Consumer Cyclical	8.66
Technology	7.98
Basic Materials	6.91
Utilities	4.41
Diversified	1.05
Short-Term and Other Net Assets	0.23
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 7/31/09
Security	Percentage of Net Assets
Exxon Mobil Corp.	1.61	%
Microsoft Corp.	0.87
HSBC Holdings PLC (United Kingdom)	0.72
Procter & Gamble Co. (The)	0.70
Johnson & Johnson	0.67
Apple Inc.	0.67
BP PLC (United Kingdom)	0.67
Nestle SA Registered (Switzerland)	0.65
AT&T Inc.	0.65
International Business Machines Corp.	0.64
TOTAL	7.85	%

12 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance

iSHARES^® MSCI ACWI EX US INDEX FUND

(TICKER: ACWX)

INVESTMENT OBJECTIVE

The iShares MSCI ACWI ex US Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI All Country World Index ex USA (the “Index”). The Index is a free float-adjusted market capitalization index designed to measure the combined equity market performance of developed and emerging markets countries, excluding the United States. 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, 2009 (the “reporting period”), the total return for the Fund was (22.70)%, while the total return for the Index was (21.33)%.

MARKET OVERVIEW AND DISCUSSION OF PERFORMANCE

Most international markets declined during the reporting period, as reduced U.S. consumer spending exerted downward pressure on European and Japanese exporters. Europe’s unemployment rate hit 9.4% in June, the highest rate in ten years, as the region’s gross domestic product (“GDP”) declined during the period. On the positive side, inflation in the “Eurozone” was historically low at the end of the reporting period. Meanwhile, the United Kingdom economy also declined, although more moderately than in Continental Europe.

In Japan, exports dropped about 50% in the first half of 2009 and GDP declined a record 13.5% during the fourth quarter of 2008 and 14.2% in the first quarter of 2009. However, Japan’s economy was showing signs of recovery by June. Manufacturers were boosting production after months of cutbacks. The yen also strengthened. In addition, the Bank of Japan declared the economy was showing signs of “leveling out.”

Other Asian markets saw declining growth. For example, China’s first quarter 2009 GDP advanced 6.1%, its slowest rate in a decade. Meanwhile, South Korea averted a recession, posting a 0.2% GDP advance in the first quarter compared to a negative 5.1% in the prior period.

Overall, most market capitalizations and investment styles posted negative returns for the reporting period. However, markets rallied late in the period, helping to mitigate declines for the fiscal year, as business conditions appeared to gradually improve.

The ten largest holdings of the Fund represented approximately 11% of Fund net assets as of July 31, 2009. The overall performance of the Fund was negative during the reporting period. Only one company out of the top ten delivered a positive return as of July 31, 2009 – Samsung Electronics Co. Ltd., a South Korea-based semiconductor manufacturer. HSBC Holdings PLC (banking) and Novartis AG (pharmaceuticals) posted the largest negative returns for the reporting period.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 13

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI ACWI EX US INDEX FUND

Performance as of July 31, 2009

Average Annual Total Returns						Cumulative Total Returns
Year Ended 7/31/09			Inception to 7/31/09			Inception to 7/31/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(22.70)%	(22.06)%	(21.33)%	(19.56)%	(19.11)%	(19.14)%	(25.47)%	(24.90)%	(24.95)%

Total returns for the period since inception are calculated from the inception date of the Fund (3/26/08). “Average Annual Total Returns” represent the average annual change in value of an investment over the period(s) indicated. “Cumulative Total Returns” represent the total change in value of an investment over the period(s) 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 primary 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 after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (3/28/08), the NAV of the Fund is used as a proxy for the Market 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 performance shown in the table(s) and chart(s) above 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 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.

14 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI ACWI EX US INDEX FUND

PORTFOLIO ALLOCATION As of 7/31/09
Sector	Percentage of Net Assets
Financial	25.69	%
Consumer Non-Cyclical	14.38
Energy	11.55
Basic Materials	10.57
Industrial	10.54
Communications	8.18
Consumer Cyclical	8.02
Technology	5.44
Utilities	4.21
Diversified	1.04
Short-Term and Other Net Assets	0.38
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 7/31/09
Security	Percentage of Net Assets
HSBC Holdings PLC (United Kingdom)	1.56	%
BP PLC (United Kingdom)	1.46
Nestle SA Registered (Switzerland)	1.28
GlaxoSmithKline PLC (United Kingdom)	1.12
BHP Billiton Ltd. (Australia)	1.05
Samsung Electronics Co. Ltd. SP GDR (South Korea)	1.04
Vodafone Group PLC (United Kingdom)	0.96
Roche Holding AG Genusschein (Switzerland)	0.93
Novartis AG Registered (Switzerland)	0.92
Toyota Motor Corp. (Japan)	0.92
TOTAL	11.24	%

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 15

Management’s Discussion of Fund Performance

iSHARES^® MSCI ALL COUNTRY ASIA EX JAPAN INDEX FUND

(TICKER: AAXJ)

INVESTMENT OBJECTIVE

The iShares MSCI All Country Asia ex Japan Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI All Country Asia ex Japan Index^SM (the “Index”). The Index is a free float-adjusted market capitalization index that is designed to measure the equity market performance of Asia, excluding Japan. 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 period from August 13, 2008 (inception date of the Fund) through July 31, 2009 (the “reporting period”), the total return for the Fund was 1.17%, while the total return for the Index was (3.03)%*.

MARKET OVERVIEW AND DISCUSSION OF PERFORMANCE

After declining 40% during the first half of the reporting period, Asian markets bounced back sharply to finish the year, generally outperforming their regional counterparts in Europe and the Americas. China’s powerful economy played a large role. Unlike many other countries, China’s economy did not experience a recession during the period. Its worst performance was in the first quarter of 2009, when gross domestic product (“GDP”) growth was about 6%. With its surplus, the Chinese government launched a stimulus program in November that benefited the country’s infrastructure industries such as steelmakers, cement producers and construction companies. During the second quarter of 2009, China’s economy grew by about 8% compared to the same period last year.

South Korea’s export-dependent economy rebounded in the second quarter of 2009, as GDP rose 2.3%, up from 0.1% in the first quarter. However, inflation was nearly 5% in calendar 2008, the highest rate in ten years. In addition, the South Korean won weakened substantially against the U.S. dollar during the reporting period, dampening returns for U.S. investors.

The economy of Taiwan contracted about 10% during the first quarter of 2009 and nearly 8% during the second quarter, reflecting its first recession since 2001 and hampering market performance. Taiwan’s economy is highly dependent on exports to China, which slowed during the reporting period. As an example, Taiwan’s shipments to China fell 21% in July 2009 compared to the previous year.

Whereas China was able to stimulate its economy by spending down its budget surplus, India’s government was forced to borrow heavily to boost its economy, which grew about 7% during the first quarter of 2009. As a result, the country is running a significant budget deficit, nearly 8% of GDP in the most recent fiscal year. On the positive side, the business environment remains attractive to U.S. multinationals setting up manufacturing locations. Additionally, India continues to be a top outsourcing destination for global companies due to low costs and a highly skilled workforce.

The ten largest holdings of the Fund represented approximately 31% of Fund net assets as of July 31, 2009. Overall performance of the Fund was slightly positive during the reporting period, and three out of the ten largest holdings posted positive results as of July 31, 2009. Positive performers included HDFC Bank Ltd., an Indian bank, Samsung Electronics Co. Ltd., a South Korea-based semiconductor manufacturer, and United Microelectronics Corp., a Taiwan-based semiconductor company. Shinhan Financial Group Co. Ltd. (South Korean bank) and Reliance Industries Ltd., an Indian energy concern, generated the largest declines for the reporting period.

* Because the Fund uses a representative sampling indexing strategy, it can be expected to have a larger tracking error than if it used a replication indexing strategy. As a result of the use of representative sampling, the Fund outperformed the Index by 4.20% during the reporting period. The investment adviser expects that, over time, the Fund’s tracking error will not exceed 5%.

16 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI ALL COUNTRY ASIA EX JAPAN INDEX FUND

Performance as of July 31, 2009

Cumulative Total Returns
Inception to 7/31/09
NAV	MARKET	INDEX
1.17%	1.16%	(3.03)%

“Cumulative Total Returns” represent the total change in value of an investment over the period(s) indicated and are calculated from an inception date of 8/13/08.

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 primary 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 after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (8/15/08), the NAV of the Fund is used as a proxy for the Market 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 performance shown in the table(s) and chart(s) above 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 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.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 17

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI ALL COUNTRY ASIA EX JAPAN INDEX FUND

PORTFOLIO ALLOCATION As of 7/31/09
Sector/Investment Type	Percentage of Net Assets
Financial	31.97	%
Technology	16.93
Communications	10.97
Industrial	10.03
Energy	9.19
Consumer Cyclical	5.50
Basic Materials	4.53
Utilities	3.66
Consumer Non-Cyclical	2.82
Diversified	2.64
Exchange-Traded Funds	1.12
Short-Term and Other Net Assets	0.64
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 7/31/09
Security	Percentage of Net Assets
Taiwan Semiconductor Manufacturing Co. Ltd. SP ADR (Taiwan)	4.83	%
Samsung Electronics Co. Ltd. SP GDR (South Korea)	4.52
Chunghwa Telecom Co. Ltd. SP ADR (Taiwan)	3.22
China Mobile Ltd. (China)	2.83
KB Financial Group Inc. SP ADR (South Korea)	2.79
United Microelectronics Corp. SP ADR (Taiwan)	2.68
Shinhan Financial Group Co. Ltd. SP ADR (South Korea)	2.66
POSCO SP ADR (South Korea)	2.61
Reliance Industries Ltd. SP GDR (India)	2.41
HDFC Bank Ltd. SP ADR (India)	2.15
TOTAL	30.70	%

18 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance

iSHARES^® MSCI EAFE GROWTH INDEX FUND

(TICKER: EFG)

INVESTMENT OBJECTIVE

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 constituents of the Index include securities from Europe, Australasia and the Far East. The Index generally represents approximately 50% of the free float-adjusted market capitalization of the MSCI EAFE Index and consists of those securities classified by MSCI 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, 2009 (the “reporting period”), the total return for the Fund was (25.03)%, while the total return for the Index was (25.35)%.

MARKET OVERVIEW AND DISCUSSION OF PERFORMANCE

Most international markets declined during the reporting period, as reduced U.S. consumer spending exerted downward pressure on European and Japanese exporters. Europe’s unemployment rate hit 9.4% in June, its highest rate in ten years, and the region’s gross domestic product (“GDP”) declined during the period. On the positive side, inflation in the “Eurozone” was historically low at the end of the reporting period. Meanwhile, the United Kingdom economy also declined, although more moderately than in Continental Europe.

In Japan, exports dropped about 50% in the first half of 2009 as GDP declined a record 13.5% during the fourth quarter of 2008 and 14.2% in the first quarter of 2009. However, Japan’s economy was showing signs of recovery by June. Manufacturers were boosting production after months of cutbacks. The yen also strengthened. In addition, the Bank of Japan declared the economy was showing signs of “leveling out.”

Australia’s economy, though weakened, did not enter a recession during the reporting period. Australian GDP contracted 0.6% in the fourth quarter of 2008, but grew 0.4% in the first quarter of 2009. Australia benefited from its close economic ties to China, whose economy held up relatively well during the period.

Growth-oriented stocks generally underperformed value stocks in the declining market environment. Overall, most market capitalizations and investment styles posted negative returns for the reporting period. However, markets rallied late in the period, helping to mitigate declines for the fiscal year, as business conditions appeared to gradually improve.

The ten largest holdings of the Fund represented approximately 20% of Fund net assets as of July 31, 2009. Although the overall performance of the Fund was negative during the reporting period, two companies out of the top ten posted positive results as of July 31, 2009. The positive performers were Total SA, an oil company based in France and Telefonica SA, a telecommunications company based in Spain. Rio Tinto PLC, a London-based mining and exploration company, and Novartis AG, a Swiss pharmaceutical concern, endured the steepest declines.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 19

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI EAFE GROWTH INDEX FUND

Performance as of July 31, 2009

Average Annual Total Returns						Cumulative Total Returns
Year Ended 7/31/09			Inception to 7/31/09			Inception to 7/31/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(25.03)%	(24.35)%	(25.35)%	1.12%	1.28%	1.20%	4.57%	5.23%	4.89%

Total returns for the period 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 period(s) indicated. “Cumulative Total Returns” represent the total change in value of an investment over the period(s) 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 primary 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 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 the Market 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 performance shown in the table(s) and chart(s) above 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 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.

20 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI EAFE GROWTH INDEX FUND

PORTFOLIO ALLOCATION As of 7/30/09
Sector	Percentage of Net Assets
Consumer Non-Cyclical	30.12	%
Industrial	13.20
Financial	13.19
Basic Materials	12.38
Consumer Cyclical	11.00
Communications	7.17
Energy	5.32
Utilities	3.96
Technology	2.46
Diversified	0.91
Short-Term and Other Net Assets	0.29
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 7/30/09
Security	Percentage of Net Assets
Nestle SA Registered (Switzerland)	3.33	%
Roche Holding AG Genusschein (Switzerland)	2.44
BHP Billiton Ltd. (Australia)	2.36
Telefonica SA (Spain)	2.34
GlaxoSmithKline PLC (United Kingdom)	2.21
Novartis AG Registered (Switzerland)	2.17
Total SA (France)	1.69
British American Tobacco PLC (United Kingdom)	1.33
BHP Billiton PLC (United Kingdom)	1.27
Rio Tinto PLC (United Kingdom)	1.27
TOTAL	20.41	%

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 21

Management’s Discussion of Fund Performance

iSHARES^® MSCI EAFE VALUE INDEX FUND

(TICKER: EFV)

INVESTMENT OBJECTIVE

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 constituents of the Index include securities from Europe, Australasia and the Far East. The Index generally represents approximately 50% of the free float-adjusted market capitalization of the MSCI EAFE Index and consists of those securities classified by MSCI 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, 2009 (the “reporting period”), the total return for the Fund and the Index was (19.73)%.

MARKET OVERVIEW AND DISCUSSION OF PERFORMANCE

Most international markets declined during the reporting period, as reduced U.S. consumer spending exerted downward pressure on European and Japanese exporters. Europe’s unemployment rate hit 9.4% in June, its highest rate in ten years, and the region’s gross domestic product (“GDP”) declined during the period. On the positive side, inflation in the “Eurozone” was historically low at the end of the reporting period. Meanwhile, the United Kingdom economy also declined, although more moderately than in Continental Europe.

In Japan, exports dropped about 50% in the first half of 2009 as GDP declined a record 13.5% during the fourth quarter of 2008 and 14.2% in the first quarter of 2009. However, Japan’s economy was showing signs of recovery by June. Manufacturers were boosting production after months of cutbacks. The yen also strengthened. In addition, the Bank of Japan declared the economy was showing signs of “leveling out.”

Australia’s economy, though weakened, did not enter a recession during the reporting period. Australian GDP contracted 0.6% in the fourth quarter of 2008, but grew 0.4% in the first quarter of 2009. Australia benefited from its close economic ties to China, whose economy held up relatively well during the period.

Value-oriented stocks generally outperformed growth stocks in the declining market environment. Overall, most market capitalizations and investment styles posted negative returns for the reporting period. However, markets rallied late in the period, helping to mitigate declines for the fiscal year, as business conditions appeared to gradually improve.

The ten largest holdings of the Fund represented approximately 23% of Fund net assets as of July 31, 2009. Although the overall performance of the Fund was negative during the reporting period, two companies out of the top ten posted positive results as of July 31, 2009. The positive performers were E.ON AG, a Germany-based utility and Siemens AG, a German engineering firm. HSBC Holdings PLC (banking) and Royal Dutch Shell PLC (energy) experienced the most significant declines.

22 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI EAFE VALUE INDEX FUND

Performance as of July 31, 2009

Average Annual Total Returns						Cumulative Total Returns
Year Ended 7/31/09			Inception to 7/31/09			Inception to 7/31/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(19.73)%	(18.88)%	(19.73)%	0.52%	0.68%	0.63%	2.08%	2.75%	2.54%

Total returns for the period 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 period(s) indicated. “Cumulative Total Returns” represent the total change in value of an investment over the period(s) 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 primary 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 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 the Market 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 performance shown in the table(s) and chart(s) above 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 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.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 23

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI EAFE VALUE INDEX FUND

PORTFOLIO ALLOCATION As of 7/31/09
Sector	Percentage of Net Assets
Financial	36.34	%
Energy	10.84
Industrial	10.44
Communications	9.82
Consumer Cyclical	9.44
Utilities	7.80
Consumer Non-Cyclical	6.65
Basic Materials	5.76
Technology	1.70
Diversified	0.87
Short-Term and Other Net Assets	0.34
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 7/31/09
Security	Percentage of Net Assets
HSBC Holdings PLC (United Kingdom)	3.76	%
BP PLC (United Kingdom)	3.36
Banco Santander SA (Spain)	2.54
Toyota Motor Corp. (Japan)	2.52
Vodafone Group PLC (United Kingdom)	2.32
Royal Dutch Shell PLC Class A (United Kingdom)	2.01
E.ON AG (Germany)	1.58
Royal Dutch Shell PLC Class B (United Kingdom)	1.51
Sanofi-Aventis (France)	1.49
Siemens AG Registered (Germany)	1.41
TOTAL	22.50	%

24 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance

iSHARES^® MSCI EAFE SMALL CAP INDEX FUND

(TICKER: SCZ)

INVESTMENT OBJECTIVE

The iShares MSCI EAFE Small Cap Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI EAFE Small Cap Index (the “Index”). The Index targets 40% of the eligible small-capitalization universe in each industry group of each country represented by the MSCI EAFE^® Index. MSCI Inc. defines the small-capitalization universe as all listed securities that have a market capitalization in the range of $200 – $1,500 million. 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, 2009 (the “reporting period”), the total return for the Fund was (20.31)%, while the total return for the Index was (18.94)%.

MARKET OVERVIEW AND DISCUSSION OF PERFORMANCE

Most international markets declined during the reporting period, as reduced U.S. consumer spending exerted downward pressure on European and Japanese exporters. Europe’s unemployment rate hit 9.4% in June, its highest rate in ten years, as the region’s gross domestic product (“GDP”) declined during the period. On the positive side, inflation in the “Eurozone” was historically low at the end of the reporting period. Meanwhile, the United Kingdom economy also declined, although more moderately than in Continental Europe.

In Japan, exports dropped about 50% in the first half of 2009 and GDP declined a record 13.5% during the fourth quarter of 2008 and 14.2% in the first quarter of 2009. However, Japan’s economy was showing signs of recovery by June. Manufacturers were boosting production after months of cutbacks. The yen also strengthened. In addition, the Bank of Japan declared the economy was showing signs of “leveling out.”

Australia’s economy, though weakened, did not enter a recession during the reporting period. Australian GDP contracted 0.6% in the fourth quarter of 2008, but grew 0.4% in the first quarter of 2009. Australia benefited from its close economic ties to China, whose economy held up relatively well during the period.

Small cap stocks slightly outperformed their large cap counterparts, while value generally outperformed growth in the declining market environment. Overall, most market capitalizations and investment styles posted negative returns for the reporting period. However, markets rallied late in the period, helping to mitigate declines for the fiscal year, as business conditions appeared to gradually improve.

The ten largest holdings of the Fund represented approximately 4% of Fund net assets as of July 31, 2009. Although the overall performance of the Fund was negative during the reporting period, seven out of the top ten posted positive results as of July 31, 2009. The more notable positive performers included Nippon Kayaku Co. Ltd. (industrial chemicals), Seino Holdings Co. Ltd. (transportation logistics) and Café de Coral Holdings Ltd. (restaurants). Cofinimmo SA (real estate) and Singapore Post Ltd. (postal services) posted the largest declines.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 25

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI EAFE SMALL CAP INDEX FUND

Performance as of July 31, 2009

Average Annual Total Returns						Cumulative Total Returns
Year Ended 7/31/09			Inception to 7/31/09			Inception to 7/31/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(20.31)%	(19.90)%	(18.94)%	(22.82)%	(22.25)%	(21.84)%	(34.67)%	(33.88)%	(33.31)%

Total returns for the period since inception are calculated from the inception date of the Fund (12/10/07). “Average Annual Total Returns” represent the average annual change in value of an investment over the period(s) indicated. “Cumulative Total Returns” represent the total change in value of an investment over the period(s) 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 primary 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 after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (12/12/07), the NAV of the Fund is used as a proxy for the Market 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 performance shown in the table(s) and chart(s) above 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 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.

26 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI EAFE SMALL CAP INDEX FUND

PORTFOLIO ALLOCATION As of 7/31/09
Sector	Percentage of Net Assets
Industrial	24.35	%
Financial	19.44
Consumer Cyclical	15.14
Consumer Non-Cyclical	14.97
Basic Materials	7.50
Communications	5.58
Energy	5.37
Technology	4.86
Diversified	1.23
Utilities	1.11
Short-Term and Other Net Assets	0.45
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 7/31/09
Security	Percentage of Net Assets
Sagami Railway Co. Ltd. (Japan)	0.59	%
Cofinimmo SA (Belgium)	0.40
Inmarsat PLC (United Kingdom)	0.39
Nippon Kayaku Co. Ltd. (Japan)	0.39
Nippon Konpo Unyu Soko Co. Ltd. (Japan)	0.37
Seino Holdings Co. Ltd. (Japan)	0.36
Nagase & Co. Ltd. (Japan)	0.35
Sumitomo Bakelite Co. Ltd. (Japan)	0.35
Singapore Post Ltd. (Singapore)	0.33
Cafe de Coral Holdings Ltd. (Hong Kong)	0.33
TOTAL	3.86	%

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 27

Management’s Discussion of Fund Performance

iSHARES^® MSCI KOKUSAI INDEX FUND

(TICKER: TOK)

INVESTMENT OBJECTIVE

The iShares MSCI Kokusai Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI Kokusai Index (the “Index”). The Index is designed to measure equity market performance in those countries that MSCI Inc. has classified as having developed economies, excluding Japan. 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, 2009 (the “reporting period”), the total return for the Fund was (21.54)%, while the total return for the Index was (22.13)%.

MARKET OVERVIEW AND DISCUSSION OF PERFORMANCE

Stock markets throughout the world declined sharply during the reporting period, as global economies faced a recession. Free trade and the related economic interdependency of nations may have contributed to the recession’s global impact. However, markets rallied late in the period, mitigating declines for the fiscal year, as business conditions appeared to gradually improve.

In the U.S., stock indices declined during the period amid an environment of ongoing market volatility and changing market sentiment. Weakening economic conditions, a severe credit crunch, and turmoil in the financial sector were among the factors contributing to the declining market environment during the reporting period. The recession that had begun in December 2007 continued, with consumer spending falling and unemployment rates climbing to their highest levels since 1983. After dipping to multi-year lows in early March 2009, major equity indices rebounded in the final months of the reporting period amid suggestions of a possible economic recovery. Gross domestic product (“GDP”) declined only 1.0% in the second quarter of 2009, after declining 6.4% during the first quarter of 2009 and 5.4% during the fourth quarter of 2008. Manufacturing levels continued to fall, but declined less in the first quarter of 2009 than in previous quarters. Similarly, unemployment levels grew at a slower pace in the first quarter of 2009 than in prior quarters. An apparent optimism about the federal government’s efforts to stimulate economic activity may have contributed additional market support. Although the market rally helped to mitigate losses somewhat, major indices generally declined by approximately 20% for the entire reporting period.

Most international markets also declined during the reporting period, as reduced U.S. consumer spending and a sliding U.S. dollar exerted downward pressure on exporters. Europe’s unemployment rate hit 9.4% in June 2009, the highest rate in ten years, as the region’s GDP declined during the period. However, throughout much of Europe, economic growth was on the verge of returning by the summer, as France and Germany each reported a 0.3% advance in GDP during the second quarter of 2009, mirroring the stabilization signs seen in the U.S. The Canadian economy, due to its reliance on exports to the U.S., closely tracked the fortunes of its neighbor to the south. The Canadian government reported slight growth by the early summer, as the country’s banking and real estate sectors generally held up better than their U.S. counterparts. In Australia, the economy, though weakened, did not enter a recession during the reporting period. Australian GDP contracted 0.6% in the fourth quarter of 2008, but grew 0.4% in the first quarter of 2009 and 0.6% in the second quarter after a series of interest rate cuts by the Reserve Bank of Australia that lowered rates to their lowest levels in nearly fifty years. In addition, Australia slightly benefited from its close economic ties to China, whose economy held up relatively well during the period.

The ten largest holdings of the Fund represented approximately 11% of Fund net assets as of July 31, 2009. Performance for all ten holdings was negative for the reporting period. JPMorgan Chase & Co., Nestle SA and Microsoft Corp. posted the lowest negative returns. London-based banking giant HSBC Holdings PLC, energy firm BP PLC and food marketer Procter & Gamble Co. endured the largest declines.

28 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI KOKUSAI INDEX FUND

Performance as of July 31, 2009

Average Annual Total Returns						Cumulative Total Returns
Year Ended 7/31/09			Inception to 7/31/09			Inception to 7/31/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(21.54)%	(20.56)%	(22.13)%	(22.07)%	(21.77)%	(22.61)%	(33.62)%	(33.21)%	(34.38)%

Total returns for the period since inception are calculated from the inception date of the Fund (12/10/07). “Average Annual Total Returns” represent the average annual change in value of an investment over the period(s) indicated. “Cumulative Total Returns” represent the total change in value of an investment over the period(s) 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 primary 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 after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (12/12/07), the NAV of the Fund is used as a proxy for the Market 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 performance shown in the table(s) and chart(s) above 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 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.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 29

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI KOKUSAI INDEX FUND

PORTFOLIO ALLOCATION As of 7/31/09
Sector	Percentage of Net Assets
Consumer Non-Cyclical	21.62	%
Financial	20.11
Energy	12.19
Communications	10.61
Industrial	8.52
Technology	7.88
Consumer Cyclical	6.77
Basic Materials	6.58
Utilities	4.46
Diversified	0.89
Short-Term and Other Net Assets	0.37
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 7/31/09
Security	Percentage of Net Assets
Exxon Mobil Corp.	2.03	%
Microsoft Corp.	1.10
HSBC Holdings PLC (United Kingdom)	1.06
Johnson & Johnson	0.98
Procter & Gamble Co. (The)	0.95
AT&T Inc.	0.95
International Business Machines Corp.	0.92
BP PLC (United Kingdom)	0.89
JPMorgan Chase & Co.	0.88
Nestle SA Registered (Switzerland)	0.86
TOTAL	10.62	%

30 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Shareholder Expenses (Unaudited)

iSHARES^® TRUST

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, 2009 to July 31, 2009.

ACTUAL EXPENSES

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

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

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

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

iShares Index Fund	Beginning Account Value (2/1/09)	Ending Account Value (7/31/09)	Annualized Expense Ratio		Expenses Paid During Perioda (2/1/09 to 7/31/09)
FTSE Developed Small Cap ex-North America
Actual	$1,000.00	$1,382.20	0.50	%	$2.95
Hypothetical (5% return before expenses)	1,000.00	1,022.30	0.50		2.51
FTSE/Xinhua China 25
Actual	1,000.00	1,650.90	0.72		4.73
Hypothetical (5% return before expenses)	1,000.00	1,021.20	0.72		3.61
FTSE China (HK Listed)
Actual	1,000.00	1,635.50	0.72		4.70
Hypothetical (5% return before expenses)	1,000.00	1,021.20	0.72		3.61
MSCI ACWI
Actual	1,000.00	1,305.30	0.35		2.00
Hypothetical (5% return before expenses)	1,000.00	1,023.10	0.35		1.76

SHAREHOLDER EXPENSES 31

Shareholder Expenses (Unaudited) (Continued)

iSHARES^® TRUST

iShares Index Fund	Beginning Account Value (2/1/09)	Ending Account Value (7/31/09)	Annualized Expense Ratio		Expenses Paid During Perioda (2/1/09 to 7/31/09)
MSCI ACWI ex US
Actual	$1,000.00	$1,378.10	0.35	%	$2.06
Hypothetical (5% return before expenses)	1,000.00	1,023.10	0.35		1.76
MSCI All Country Asia ex Japan
Actual	1,000.00	1,618.50	0.70		4.54
Hypothetical (5% return before expenses)	1,000.00	1,021.30	0.70		3.51
MSCI EAFE Growth
Actual	1,000.00	1,263.40	0.40		2.24
Hypothetical (5% return before expenses)	1,000.00	1,022.80	0.40		2.01
MSCI EAFE Value
Actual	1,000.00	1,350.30	0.40		2.33
Hypothetical (5% return before expenses)	1,000.00	1,022.80	0.40		2.01
MSCI EAFE Small Cap
Actual	1,000.00	1,399.80	0.40		2.38
Hypothetical (5% return before expenses)	1,000.00	1,022.80	0.40		2.01
MSCI Kokusai
Actual	1,000.00	1,280.40	0.25		1.41
Hypothetical (5% return before expenses)	1,000.00	1,023.60	0.25		1.25

^a Expenses are calculated using each Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days).

32 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® FTSE DEVELOPED SMALL CAP EX-NORTH AMERICA INDEX FUND

July 31, 2009

Security	Shares	Value
COMMON STOCKS – 97.76%
AUSTRALIA – 5.69%
ABB Grain Ltd.	9,748	$	72,207
Arrow Energy Ltd.a	18,436		65,752
Astro Japan Property Trust	68,832		24,606
Atlas Iron Ltd.a	9,796		16,166
Australian Worldwide Exploration Ltd.a	19,808		43,968
Beach Petroleum Ltd.	39,612		27,992
Bradken Ltd.	4,780		20,982
Centennial Coal Co. Ltd.	13,504		33,567
ConnectEast Group	60,740		19,694
Cromwell Group	28,248		15,030
David Jones Ltd.	16,288		69,601
Energy World Corp. Ltd.a	12,520		6,661
Felix Resources Ltd.	1,800		26,786
Gindalbie Metals Ltd.a	13,708		9,972
Healthscope Ltd.	10,892		39,390
Independence Group NL	5,396		23,776
Infigen Energy	35,628		38,209
ING Office Fund	53,676		21,642
iSOFT Group Ltd.a	20,108		12,788
JB Hi-Fi Ltd.	6,424		90,256
Karoon Gas Australia Ltd.a	1,736		16,294
Linc Energy Ltd.a	6,784		8,742
Lynas Corp. Ltd.a	20,104		7,438
Macarthur Coal Ltd.	4,624		30,138
Macquarie CountryWide Trust	19,656		8,579
Macquarie Leisure Trust Group	29,944		35,598
Minara Resources Ltd.a	15,460		14,266
Monadelphous Group Ltd.	3,468		33,560
Mount Gibson Iron Ltd.a	17,340		17,227
Murchison Metals Ltd.a	15,052		23,901
Nexus Energy Ltd.a	15,848		4,611
OM Holdings Ltd.	10,952		15,934
Pacific Brands Ltd.	37,191		36,793
PanAust Ltd.a	56,937		19,407
Platinum Asset Management Ltd.	6,228		23,662
Platinum Australia Ltd.a	7,116		5,650
Primary Health Care Ltd.	12,992		60,161
Riversdale Mining Ltd.a	5,260		28,861
Roc Oil Co. Ltd.a	20,740		12,759
Seek Ltd.	7,540		26,703

Security	Shares	Value
Silex Systems Ltd.a	5,912	$	34,061
Sino Gold Mining Ltd.a	11,437		50,298
St. Barbara Ltd.a	55,064		8,927
Straits Resources Ltd.a	9,336		18,007
Sundance Resources Ltd.a	53,236		7,966
Sunland Group Ltd.	12,540		8,966
Transfield Services Ltd.	5,660		13,175
Transpacific Industries Group Ltd.b	5,748		5,782
United Group Ltd.	4,624		46,168
Western Areas NLa	4,864		24,586
			1,327,265
AUSTRIA – 1.53%
Andritz AG	1,600		69,753
bwin Interactive Entertainment AGa	888		36,132
BWT AG	1,068		21,834
Intercell AGa	1,520		55,448
Oesterreichische Post AG	1,392		42,490
Palfinger AGb	1,460		24,591
RHI AGa	2,216		46,655
Schoeller-Bleckmann Oilfield Equipment AG	428		15,170
Semperit AG Holding	288		7,860
UNIQA Versicherungen AG	1,956		37,160
			357,093
BELGIUM – 1.89%
Ackermans & van Haaren NV	1,228		85,657
Agfa-Gevaert NVa	7,600		23,382
Befimmo SCA	656		55,803
Compagnie Maritime Belge SA	612		19,765
EVS Broadcast Equipment SA	416		24,004
NV Bekaert SA	692		85,786
Omega Pharma SA	956		29,954
Option NVa,b	4,960		13,431
RHJ International SAa	6,536		42,162
Telenet Group Holding NVa	2,632		60,115
			440,059
DENMARK – 1.54%
ALK-Abello A/S	320		24,433
Bang & Olufsen A/S Class B	928		7,739
DSV A/Sa	5,280		72,386
Genmab A/Sa	884		35,179
GN Store Nord A/Sa	7,804		37,446

SCHEDULES OF INVESTMENTS 33

Schedule of Investments (Continued)

iSHARES^® FTSE DEVELOPED SMALL CAP EX-NORTH AMERICA INDEX FUND

July 31, 2009

Security	Shares	Value
Simcorp A/S	200	$	34,159
Sydbank A/Sa	2,224		55,898
Topdanmark A/Sa	568		77,221
Torm A/S	1,516		15,299
			359,760
FINLAND – 2.32%
Amer Sports OYJ Class A	3,920		37,514
Cargotec Corp. Class B	1,028		19,165
Citycon OYJ	9,988		26,055
Elisa OYJ	3,676		67,074
Huhtamaki OYJ	4,412		49,541
Konecranes OYJ	1,488		40,357
M-real OYJ Class Ba	9,052		7,443
Orion OYJ Class B	2,688		46,874
Outotec OYJ	1,036		24,426
Pohjola Bank PLC	5,516		57,088
Ruukki Group OYJa	5,516		13,373
Tieto OYJ	2,100		35,787
Uponor OYJ	2,688		36,547
Vacon OYJ	932		35,676
YIT OYJ	3,316		43,299
			540,219
FRANCE – 6.07%
Altran Technologies SAa	3,620		10,619
BioMerieux SA	688		66,601
Bollore SA	328		49,548
BOURBON SA	1,509		63,048
Compagnie Plastic Omnium SA	960		18,374
Derichebourg	4,428		12,932
Etablissements Maurel et Prom	3,128		53,926
Fimalac SA	664		34,831
Fonciere des Regions	624		54,416
Groupe Eurotunnel SA	4,516		26,647
Guyenne et Gascogne SA	636		63,569
Havas SA	14,728		42,429
IMS International Metal Servicea	1,120		17,927
Ipsos SA	2,080		54,010
M6-Metropole Television	3,420		68,003
Neopost SA	944		79,967
Nexans SA	660		44,175
Nexity	912		31,264
NicOx SAa	1,524		18,884

Security	Shares	Value
Rhodia SAa	2,560	$	27,762
Rubis SA	1,084		87,600
Saft Groupe SA	1,020		39,580
SCOR SE	4,288		102,406
Sechilienne-Sidec	1,172		44,913
Societe de la Tour Eiffel	360		13,684
Societe Immobiliere de Location pour l’Industrie et le Commerce	680		67,774
Soitec SAa	3,528		30,746
SR Teleperformance SA	2,212		69,621
Theolia SAa	912		4,771
Thomsona	17,004		22,468
Ubisoft Entertainment SAa	2,184		37,110
Zodiac Aerospace	1,480		56,842
			1,416,447
GERMANY – 5.49%
Aareal Bank AGa	1,288		18,224
AIXTRON AG	2,972		48,456
Aurubis AG	1,684		58,350
Bauer AG	568		20,374
Bilfinger Berger AG	856		44,660
Conergy AGa	6,012		5,796
Demag Cranes AG	1,008		24,866
Deutsche Wohnen AG Bearera	540		8,153
DEUTZ AGa	4,724		22,503
DIC Asset AG	1,424		9,993
Douglas Holding AG	1,688		66,817
ElringKlinger AG	1,884		35,952
Freenet AGa	2,320		28,451
FUCHS PETROLUB AG	604		35,332
Gildemeister AG	1,716		18,344
Heidelberger Druckmaschinen AGa	2,640		19,388
IVG Immobilien AGa	2,388		16,488
Kontron AG	3,164		36,200
LEONI AG	1,272		24,688
MLP AG	2,512		34,011
MTU Aero Engines Holding AG	1,320		47,722
Nordex AGa	844		13,557
Praktiker Bau-und Heimwerkermaerkte Holding AG	2,136		21,289
Premiere AGa	9,280		38,681
QIAGEN NVa	4,712		89,451

34 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® FTSE DEVELOPED SMALL CAP EX-NORTH AMERICA INDEX FUND

July 31, 2009

Security	Shares	Value
Rheinmetall AG	880	$	42,619
RHON KLINIKUM AGb	1,764		40,390
SGL Carbon SEa	1,600		52,377
Software AG	700		52,102
Solon SEa,b	284		4,091
Stada Arzneimittel AG	1,516		36,624
Symrise AG	3,044		48,724
Tognum AG	2,732		37,881
United Internet AG Registereda	3,580		45,426
Vossloh AG	376		43,382
Wincor Nixdorf AG	1,100		58,732
Wirecard AG	2,916		31,213
			1,281,307
HONG KONG – 3.91%
APAC Resources Ltd.a	160,000		17,961
Champion REIT	64,000		25,600
China Dongxiang Group Co.	56,000		42,560
China Everbright International Ltd.	104,000		39,721
China Gas Holdings Ltd.	80,000		21,471
China Grand Forestry Green Resources Group Ltd.a	168,000		8,129
China Green Holdings Ltd.	48,000		50,291
China Mining Resources Group Ltd.a	240,000		14,090
China Pharmaceutical Group Ltd.	24,000		13,688
China Power New Energy Development Co. Ltd.a,b	160,000		12,593
China State Construction International Holdings Ltd.b	64,000		33,610
Chow Sang Sang Holdings International Ltd.	32,000		27,995
Daphne International Holdings Ltd.	24,000		16,134
eSun Holdings Ltd.a	40,000		6,039
Franshion Properties (China) Ltd.	56,000		19,582
FU JI Food and Catering Services Holdings Ltd.	16,000		15,690
Fushan International Energy Group Ltd.a	64,000		42,364
Geely Automobile Holdings Ltd.	120,000		29,264
Hi Sun Technology (China) Ltd.a	48,000		10,529
HKR International Ltd.a	67,200		29,655
Kingsoft Corp. Ltd.	27,236		27,517
Midland Holdings Ltd.	32,000		25,641

Security	Shares	Value
Minth Group Ltd.	48,000	$	45,832
Pacific Basin Shipping Ltd.	44,000		33,156
Peace Mark Holdings Ltd.a,c	30,000		–
Poly (Hong Kong) Investments Ltd.	12,000		10,823
Ports Design Ltd.	18,000		46,405
Regal Hotels International Holdings Ltd.	36,000		11,566
REXLot Holdings Ltd.a	200,000		17,290
Samling Global Ltd.	184,000		14,957
Shougang Concord International Enterprises Co. Ltd.	88,000		17,827
Sino Union Petroleum & Chemical International Ltd.a	80,000		10,116
Sinolink Worldwide Holdings Ltd.	144,000		23,226
Sinotruk (Hong Kong) Ltd.	22,000		25,548
SRE Group Ltd.a	120,000		16,258
Tian An China Investments Co. Ltd.	44,400		26,067
VTech Holdings Ltd.	8,000		57,032
XinAo Gas Holdings Ltd.	16,000		26,508
			912,735
IRELAND – 0.99%
C&C Group PLC	9,608		27,925
DCC PLC	3,292		70,008
Grafton Group PLCa	9,148		43,837
Greencore Group PLC	10,488		15,910
Irish Continental Group PLCa	428		6,129
Kingspan Group PLC	6,288		42,078
Smurfit Kappa Group PLC	4,336		25,204
			231,091
ISRAEL – 0.62%
Delek Drilling LP	24,572		41,455
Hadera Paper Ltd.a	1,084		60,721
Retalix Ltd.a	4,712		42,686
			144,862
ITALY – 2.92%
Azimut Holding SpA	6,204		65,968
Banca Piccolo Credito Valtellinese Scrl	8,456		83,320
Banca Popolare dell’Etruria e del Lazio Scrl	6,312		39,375
COFIDE SpAa	41,796		33,598
Danieli SpA RNC	2,020		21,479
Gruppo Coin SpAa	5,856		27,813

SCHEDULES OF INVESTMENTS 35

Schedule of Investments (Continued)

iSHARES^® FTSE DEVELOPED SMALL CAP EX-NORTH AMERICA INDEX FUND

July 31, 2009

Security	Shares	Value
Gruppo Editoriale L’Espresso SpAa	20,524	$	37,362
Hera SpA	28,300		69,412
Impregilo SpA	10,308		39,056
Indesit Co. SpAa	3,284		20,858
Interpump Group SpAa	7,556		33,209
Pirelli & C. Real Estate SpAa	18,012		13,854
Prysmian SpA	3,416		58,455
Seat Pagine Gialle SpAa	1,424		365
Societa Cattolica di Assicurazioni Scrla	1,780		58,850
Societa Iniziative Autostradali e Servizi SpA	4,536		33,248
Sorin SpAa	24,644		37,420
Tiscali SpAa	18,984		8,047
			681,689
JAPAN – 20.96%
Adeka Corp.	10,000		89,080
Aeon Delight Co. Ltd.	400		5,572
Akebono Brake Industry Co. Ltd.b	6,800		42,859
Amano Corp.	5,600		49,650
Bank of Ikeda Ltd. (The)a	400		15,715
Bank of Okinawa Ltd. (The)	2,000		73,533
Best Denki Co. Ltd.	2,000		9,938
COMSYS Holdings Corp.	8,000		92,106
Culture Convenience Club Co. Ltd.b	2,000		15,253
Daibiru Corp.	3,600		32,296
Daiei Inc. (The)a	2,000		7,879
Daifuku Co. Ltd.	4,000		27,396
Daihen Corp.	8,000		26,556
Daio Paper Corp.	4,000		35,884
Daiseki Co. Ltd.	1,200		26,094
Daiwabo Holdings Co. Ltd.	4,000		15,631
Denyo Co. Ltd.	1,200		9,379
Doutor Nichires Holdings Co. Ltd.	5,600		77,122
Duskin Co. Ltd.	2,800		48,414
eAccess Ltd.	76		58,680
Eighteenth Bank Ltd. (The)	16,000		45,212
FP Corp.	800		36,304
Fuji Soft Inc.	2,000		40,002
Furukawa Co. Ltd.	20,000		27,102
Futaba Industrial Co. Ltd.	4,000		15,463
Fuyo General Lease Co. Ltd.	1,600		35,128
GEO Corp.	36		28,249
Glory Ltd.	2,400		49,162

Security	Shares	Value
GMO Internet Inc.	2,800	$	11,736
Goldcrest Co. Ltd.	1,160		27,600
Gourmet Kineya Co. Ltd.	4,000		26,682
GS Yuasa Corp.	8,000		72,693
Hanwa Co. Ltd.	12,000		48,532
Heiwa Real Estate Co. Ltd.	14,000		48,679
Hitachi Kokusai Electric Inc.	4,000		29,287
Hitachi Zosen Corp.a	26,000		33,321
Hogy Medical Co. Ltd.	800		40,927
Honeys Co. Ltd.	1,920		15,429
HORIBA Ltd.	1,600		37,565
Hosiden Corp.	3,600		46,477
Inaba Denki Sangyo Co. Ltd.	3,600		81,685
Iseki & Co. Ltd.a	4,000		18,404
Japan Airport Terminal Co. Ltd.	3,200		37,178
Japan Securities Finance Co. Ltd.	6,400		52,910
Japan Transcity Corp.	12,000		35,422
Joshin Denki Co. Ltd.b	4,000		33,069
Juki Corp.	8,000		9,748
JVC KENWOOD Holdings Inc.a	24,000		15,127
Kadokawa Group Holdings Inc.	2,000		48,007
Kagome Co. Ltd.	6,800		119,149
Kakaku.com Inc.	4		16,009
Kanematsu Corp.a	28,000		26,766
Kayaba Industry Co. Ltd.	8,000		18,320
Kenedix Inc.a	24		9,227
Kisoji Co. Ltd.	6,000		124,229
Kiyo Holdings Inc.	48,000		58,490
Komori Corp.	2,800		30,266
K’s Holdings Corp.	2,000		59,037
Kureha Corp.	24,000		138,159
Kyoei Steel Ltd.	800		19,833
Kyowa Exeo Corp.	4,000		38,910
Makino Milling Machine Co. Ltd.	4,000		13,110
Mars Engineering Corp.	800		24,749
Marusan Securities Co. Ltd.	6,000		41,221
Meitec Corp.	3,200		58,020
Mikuni Coca-Cola Bottling Co. Ltd.	12,000		98,198
Miraca Holdings Inc.	2,800		69,562
Mitsubishi Paper Mills Ltd.	32,000		45,044
Mitsubishi Steel Manufacturing Co. Ltd.	8,000		17,648
Nachi-Fujikoshi Corp.	12,000		24,581

36 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® FTSE DEVELOPED SMALL CAP EX-NORTH AMERICA INDEX FUND

July 31, 2009

Security	Shares	Value
Net One Systems Co. Ltd.	12	$	21,064
Nichi-Iko Pharmaceutical Co. Ltd.	1,200		39,708
Nifco Inc.	4,000		72,693
Nihon Dempa Kogyo Co. Ltd.	1,200		29,119
Nihon Kohden Corp.	2,400		33,304
Nihon Unisys Ltd.	3,600		31,350
Nippon Carbon Co. Ltd.	8,000		25,127
Nippon Denko Co. Ltd.	4,000		26,178
Nippon Yakin Kogyo Co. Ltd.	4,000		20,505
Nissin Kogyo Co. Ltd.	2,400		33,682
NOF Corp.	16,000		71,096
Noritz Corp.	4,400		48,994
Oita Bank Ltd. (The)	12,000		59,877
Okumura Corp.	16,000		66,390
Orient Corp.a	10,000		11,765
OSG Corp.	4,000		36,515
Parco Co. Ltd.	4,000		34,666
Park 24 Co. Ltd.	3,200		26,623
Right On Co. Ltd.	1,600		15,883
Ringer Hut Co. Ltd.a	3,200		40,574
Risa Partners Inc.	12		10,551
Rohto Pharmaceutical Co. Ltd.	4,000		42,397
Ryosan Co. Ltd.	5,200		132,738
Sagami Chain Co. Ltd.a	4,000		35,422
Saizeriya Co. Ltd.	2,800		44,120
Sanken Electric Co. Ltd.	8,000		31,430
Sankyu Inc.	12,000		45,254
Sanyo Special Steel Co. Ltd.	8,000		32,355
Sawai Pharmaceutical Co. Ltd.	400		21,052
Showa Corp.	6,400		35,968
Star Micronics Co. Ltd.	2,000		20,232
Sumitomo Warehouse Co. Ltd. (The)	12,000		50,549
Tadano Ltd.	8,000		38,153
Telepark Corp.	24		36,002
Toagosei Co. Ltd.	20,000		60,297
TOC Co. Ltd.	8,000		32,691
Toho Bank Ltd. (The)	28,000		125,889
Toho Holdings Co. Ltd.	2,400		32,145
Tokai Tokyo Financial Holdings Inc.	16,000		58,322
Tokyo Dome Corp.	8,000		25,211
Tokyo Ohka Kogyo Co. Ltd.	4,000		85,089
Tokyo Tomin Bank Ltd. (The)	1,600		29,749
Toyo Tanso Co. Ltd.	800		42,187

Security	Shares	Value
Trans Cosmos Inc.a	2,800	$	35,296
Wacom Co. Ltd.	12		25,287
Yamanashi Chuo Bank Ltd. (The)	16,000		82,021
Yodogawa Steel Works Ltd.	16,000		76,138
			4,888,323
NETHERLANDS – 3.23%
Aalberts Industries NV	3,088		28,545
ASM International NVa	2,296		38,492
BinckBank NV	2,380		35,092
Crucell NVa	2,272		56,112
CSM NV	2,790		48,910
Draka Holding NVa	1,116		17,911
Gemalto NVa	2,288		84,988
Hunter Douglas NV	596		20,440
Imtech NV	2,524		53,354
KAS Bank NV	2,600		40,548
Koninklijke BAM Groep NV	2,508		21,832
Koninklijke Boskalis Westminster NV	1,564		38,904
Koninklijke Wessanen NV	5,312		23,113
Mediq NV	2,912		38,345
Nutreco Holding NV	956		40,858
Oce NV	3,256		15,967
Smit Internationale NV	480		33,345
TomTom NVa	1,748		19,107
USG People NVa,b	1,634		21,660
Wavin NV	4,160		7,602
Wereldhave NV	836		67,227
			752,352
NEW ZEALAND – 0.55%
Freightways Ltd.	23,972		49,082
Goodman Property Trust	89,408		58,273
New Zealand Oil & Gas Ltd.	18,980		20,243
			127,598
NORWAY – 2.43%
Acergy SA	3,372		35,802
Aker ASA Class A	800		17,479
Atea ASA	3,436		17,024
BW Offshore Ltd.a	16,000		18,662
DNO International ASAa	27,424		33,412
Ekornes ASA	4,529		64,007
Fred Olsen Energy ASA	848		30,714
Frontline Ltd.	1,480		34,080
Marine Harvest ASAa,b	65,164		40,755

SCHEDULES OF INVESTMENTS 37

Schedule of Investments (Continued)

iSHARES^® FTSE DEVELOPED SMALL CAP EX-NORTH AMERICA INDEX FUND

July 31, 2009

Security	Shares	Value
Norske Skogindustrier ASAa	9,220	$	14,558
Petroleum Geo-Services ASAa	4,220		29,484
Prosafe Production Public Ltd.a	8,160		15,244
Prosafe SE	8,604		44,936
Schibsted ASAa	1,776		20,138
Subsea 7 Inc.a	2,800		32,303
Tandberg ASA	2,780		58,703
TGS-NOPEC Geophysical Co. ASAa	2,968		33,499
Tomra Systems ASA	6,816		25,798
			566,598
PORTUGAL – 0.76%
Banif SGPS SA Registered	8,388		14,152
Impresa SGPS SAa	14,808		21,624
Jeronimo Martins SGPS SA	6,088		42,466
Mota-Engil SGPS SA	10,420		44,171
Sonae Industria SGPS SAa	7,796		23,642
Sonae SGPS SA	29,544		30,870
			176,925
SINGAPORE – 1.63%
Ascendas Real Estate Investment Trust	55,468		65,390
CapitaRetail China Trust	36,000		34,701
CDL Hospitality Trusts	32,000		26,851
CH Offshore Ltd.	72,000		26,213
China Fishery Group Ltd.a	35,200		28,559
China Hongxing Sports Ltd.b	132,000		18,765
Indofood Agri Resources Ltd.a	12,000		12,732
Jardine Strategic Holdings Ltd.	2,000		32,520
Jurong Technologies Industrial Corp. Ltd.c	60,000		1,040
Kim Eng Holdings Ltd.	19,737		27,510
Raffles Education Corp. Ltd.	56,000		25,242
Singapore Petroleum Co. Ltd.	12,000		51,843
Straits Asia Resources Ltd.	20,000		29,541
			380,907
SPAIN – 3.95%
Abengoa SA	1,496		38,156
Banco Pastor SA	6,569		52,992
Baron de Ley SAa	1,472		58,851
Bolsas y Mercados Espanoles	2,016		64,938
Construcciones y Auxiliar de Ferrocarriles SA	120		53,421
Ebro Puleva SA	4,942		81,276

Security	Shares	Value
FAES FARMA SA	6,297	$	33,211
Grupo Catalana Occidente SA	1,940		39,579
Grupo Empresarial ENCE SAa	6,872		21,337
Iberia Lineas Aereas de Espana SAa	16,904		37,530
Indra Sistemas SA	4,180		95,560
La Seda de Barcelona SA Class Ba,c	25,600		7,259
NH Hoteles SAa,b	10,140		40,253
Obrascon Huarte Lain SA	1,892		45,574
Prosegur Compania de Seguridad SA	1,700		58,688
Tecnicas Reunidas SA	600		29,620
Tubacex SA	7,008		25,932
Tubos Reunidos SA	7,872		21,763
Viscofan SA	3,080		71,963
Vocento SAa	2,608		14,013
Zeltia SAa,b	6,896		29,721
			921,637
SWEDEN – 3.63%
Avanza Bank Holding AB	2,644		45,002
Axis Communications AB	1,600		13,891
Castellum AB	6,180		45,171
D. Carnegie & Co. ABc	3,396		–
Elekta AB Class B	912		14,208
Eniro ABa	6,783		22,718
Getinge AB Class B	5,520		81,831
Hakon Invest AB	2,490		26,317
Hexagon AB Class B	4,800		51,721
Hoganas AB Class B	888		11,793
JM ABa	2,400		19,931
Kinnevik Investment AB	5,708		75,999
Kungsleden AB	5,208		27,737
Lindab International AB	2,800		23,348
Lundin Petroleum ABa	6,232		54,661
Meda AB Class A	5,200		39,971
Modern Times Group MTG AB Class B	1,440		53,170
Nibe Industrier AB Class B	1,568		14,636
Niscayah Group AB	12,544		22,039
Peab AB	4,384		20,219
Q-Med ABa	3,356		22,526
Ratos AB Class B	3,768		89,477
SAS ABa	27,300		13,678
TradeDoubler ABa	800		7,714
Trelleborg AB Class Ba	10,008		49,866
			847,624

38 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® FTSE DEVELOPED SMALL CAP EX-NORTH AMERICA INDEX FUND

July 31, 2009

Security	Shares	Value
SWITZERLAND – 4.60%
Aryzta AGa	2,456	$	85,575
Bank Sarasin & Compagnie AG Class B Registereda	1,600		51,810
Banque Cantonale Vaudoise Registered	112		39,233
Basler Kantonalbank Participation Certificates	1,040		112,479
Bucher Industries AG Registered	360		39,036
Forbo Holding AG Registereda	120		26,202
Galenica AG Registered	140		41,626
Georg Fischer AG Registereda	120		25,076
Helvetia Holding AG	204		56,438
Kaba Holding AG Class B Registered	200		38,708
Kudelski SA Bearer	1,884		35,326
Kuoni Reisen Holding AG Class B Registered	128		38,296
Logitech International SA Registereda	4,496		75,194
Mobimo Holding AG Registereda	372		52,192
Panalpina Welttransport Holding AG Registered	568		43,276
PSP Swiss Property AG Registereda	2,108		111,154
Rieter Holding AG Registereda	184		34,159
Schmolz + Bickenbach AG Registered	704		23,908
Sulzer AG Registered	840		55,024
Valora Holding AG Registered	208		42,035
Vontobel Holding AG Registered	1,464		46,386
			1,073,133
UNITED KINGDOM – 23.05%
Aberdeen Asset Management PLC	18,076		37,309
Admiral Group PLC	4,720		74,847
Aggreko PLC	7,136		64,712
Amlin PLC	11,948		65,862
Aquarius Platinum Ltd.	7,493		32,298
ARM Holdings PLC	32,512		68,049
Arriva PLC	6,220		44,728
Ashmore Group PLC	5,404		18,859
Ashtead Group PLC	23,180		23,922
Assura Group Ltd.a	22,184		11,309
Autonomy Corp. PLCa	4,960		96,619
AVEVA Group PLC	2,608		34,935
Babcock International Group PLC	6,680		52,133

Security	Shares	Value
Balfour Beatty PLC	10,960	$	55,555
Barratt Developments PLCa	10,216		33,619
Bellway PLC	4,028		49,082
Berkeley Group Holdings PLC
(The) Unitsa	3,060		41,903
Bodycote PLC	5,805		13,738
Bovis Homes Group PLC	5,472		41,912
Britvic PLC	7,584		42,874
Brixton PLC	12,264		9,556
BSS Group PLC (The)	7,312		31,457
BTG PLCa	7,388		21,955
Carillion PLC	16,156		69,706
Carpetright PLC	2,796		29,689
Catlin Group Ltd.	7,160		36,798
Cattles PLCc	22,848		379
Charter International PLC	3,768		34,982
Chemring Group PLC	1,436		48,256
Chloride Group PLC	12,384		29,205
Close Brothers Group PLC	5,444		62,410
Collins Stewart PLC	13,208		16,642
COLTTelecom Group SAa	5,976		11,022
Cookson Group PLC	6,708		34,614
Croda International PLC	4,276		40,974
CSR PLCa	3,752		26,560
Dairy Crest Group PLC	4,884		26,659
Dana Petroleum PLCa	2,672		60,821
De La Rue PLC	3,010		41,543
Debenhams PLC	22,636		33,305
Derwent London PLC	3,148		50,362
Dimension Data Holdings PLC	42,816		42,767
DS Smith PLC	14,104		17,537
DSG International PLC	88,697		40,438
Dunelm Group PLC	4,508		20,889
easyJet PLCa	7,340		36,780
Fidessa Group PLC	1,272		25,474
FirstGroup PLC	11,500		63,201
Galiform PLCa	22,968		21,323
Galliford Try PLC	43,108		39,307
GAME Group PLC (The)	13,132		32,003
Go-Ahead Group PLC (The)	1,636		32,601
Greene King PLC	6,636		46,509
Halfords Group PLC	11,244		64,870

SCHEDULES OF INVESTMENTS 39

Schedule of Investments (Continued)

iSHARES^® FTSE DEVELOPED SMALL CAP EX-NORTH AMERICA INDEX FUND

July 31, 2009

Security	Shares	Value
Henderson Group PLC	21,884	$	38,185
Heritage Oil PLCa	8,432		76,186
Hikma Pharmaceuticals PLC	4,536		32,693
Hiscox Ltd.	12,648		63,430
HMV Group PLC	22,980		41,526
Homeserve PLC	2,184		49,821
Hunting PLC	4,676		32,404
IG Group Holdings PLC	9,488		47,346
IMI PLC	7,016		39,547
Inchcape PLC	119,760		54,600
Informa PLC	15,310		60,853
Inmarsat PLC	10,832		99,486
Intermediate Capital Group PLC	15,504		50,507
International Personal Finance PLC	6,340		14,084
Interserve PLC	5,056		16,429
Intertek Group PLC	4,636		79,855
Investec PLC	12,184		81,605
JD Wetherspoon PLC	7,620		57,100
JKX Oil & Gas PLC	4,692		17,891
John Wood Group PLC	8,708		38,546
Keller Group PLC	2,636		27,969
Kier Group PLC	1,588		23,957
Laird PLC	5,920		17,102
London Stock Exchange Group PLC	4,924		58,122
Marston’s PLC	24,393		37,508
Meggitt PLC	17,204		51,268
Melrose PLC	11,902		22,741
Michael Page International PLC	9,288		46,464
Micro Focus International PLC	3,924		26,249
Misys PLCa	15,408		46,299
Mitchells & Butlers PLCa	10,032		43,284
Morgan Crucible Co. PLC (The)	8,416		17,964
N Brown Group PLC	8,228		31,647
National Express Group PLC	4,056		22,711
Northern Foods PLC	22,556		22,998
Northgate PLC	4,188		868
Northumbrian Water Group PLC	12,064		46,701
Pace PLC	3,772		13,492
Pennon Group PLC	9,532		72,139
Persimmon PLC	7,536		56,252
Peter Hambro Mining PLC	3,548		38,439
Petrofac Ltd.	5,376		66,889
Premier Farnell PLC	14,800		35,148

Security	Shares	Value
Premier Foods PLCa	50,337	$	32,337
Premier Oil PLCa	3,120		63,984
Punch Taverns PLCa	7,032		12,241
QinetiQ Group PLC	14,284		31,969
Randgold Resources Ltd.	1,980		119,320
Rathbone Brothers PLC	3,168		39,391
Redrow PLCa	9,592		30,453
Regus PLC	18,608		21,517
Rightmove PLC	3,272		22,647
RPS Group PLC	8,360		26,437
Savills PLC	7,276		40,319
SDL PLCa	3,284		19,491
Serco Group PLC	12,268		82,066
Shaftesbury PLC	10,366		56,797
Shanks Group PLC	10,592		13,521
SIG PLC	10,419		21,030
SOCO International PLCa	1,868		40,166
Southern Cross Healthcare Ltd.a	7,764		17,344
Spectris PLC	4,068		37,565
Spirent Communications PLC	29,784		34,564
SSL International PLC	7,092		66,489
Stagecoach Group PLC	18,016		40,471
Taylor Wimpey PLCa	57,864		37,413
Travis Perkins PLC	3,601		48,625
Trinity Mirror PLC	17,228		23,349
TUI Travel PLC	16,352		61,538
Tullett Prebon PLC	7,600		44,729
UK Coal PLCa	5,332		10,387
UNITE Group PLC	7,440		15,541
Venture Production PLC	4,500		62,294
Victrex PLC	4,492		48,555
VT Group PLC	6,944		54,107
W.S. Atkins PLC	3,012		31,758
Weir Group PLC (The)	5,556		50,338
Wellstream Holdings PLC	2,328		21,015
WH Smith PLC	6,749		47,608
Woolworths Group PLCc	149,928		25
Xchanging PLC	5,156		16,412
Yell Group PLCa	20,648		10,526
			5,377,503
TOTAL COMMON STOCKS (Cost: $30,714,422)			22,805,127

40 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® FTSE DEVELOPED SMALL CAP EX-NORTH AMERICA INDEX FUND

July 31, 2009

Security	Shares	Value
INVESTMENT COMPANIES – 1.74%
SINGAPORE – 0.29%
Macquarie International Infrastructure Fund Ltd.	248,000	$	67,931
			67,931
SWITZERLAND – 0.49%
Absolute Private Equity AG Bearera	4,924		37,176
BB BIOTECH AG Registered	1,160		78,142
			115,318
UNITED KINGDOM – 0.96%
BlackRock World Mining Trust PLC	5,880		41,917
Lowland Investment Co. PLC	3,248		28,000
RIT Capital Partners PLC	3,916		62,487
Templeton Emerging Markets Investment Trust PLC	13,692		90,343
			222,747
TOTAL INVESTMENT COMPANIES
(Cost: $651,974)			405,996
PREFERRED STOCKS – 0.09%
GERMANY – 0.09%
ProSiebenSat.1 Media AG	3,216		20,244
			20,244
TOTAL PREFERRED STOCKS
(Cost: $7,644)			20,244
RIGHTS – 0.03%
AUSTRALIA – 0.00%
Transpacific Industries Group Ltd.a,c	10,173		85
			85
GERMANY – 0.01%
RHON-KLINIKUM AGa	1,764		2,223
			2,223
UNITED KINGDOM – 0.02%
Northgate PLCa	41,880		3,819
			3,819
TOTAL RIGHTS
(Cost: $32,699)			6,127

Security	Shares	Value
WARRANTS – 0.01%
SWITZERLAND – 0.01%
Bank Sarasin & Compagnie AG
(Expires 9/15/09)a	1,600	$	1,457
			1,457
TOTAL WARRANTS
(Cost: $1,314)			1,457
SHORT-TERM INVESTMENTS – 0.98%
MONEY MARKET FUNDS – 0.98%
Barclays Global Investors Funds Institutional Money Market Fund, SL Agency Shares 0.33%d,e,f	197,955		197,955
Barclays Global Investors Funds Prime Money Market Fund, SL Agency Shares 0.26%d,e,f	27,411		27,411
Barclays Global Investors Funds Treasury Money Market Fund, SL Agency Shares 0.12%d,e	4,448		4,448
			229,814
TOTAL SHORT-TERM INVESTMENTS
(Cost: $229,814)			229,814
TOTAL INVESTMENTS IN SECURITIES – 100.61%
(Cost: $31,637,867)			23,468,765
Other Assets, Less Liabilities – (0.61)%			(142,094	)
NET ASSETS – 100.00%		$	23,326,671

^a Non-income earning security.

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

^c Security valued using Level 3 inputs. 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 All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 41

Schedule of Investments

iSHARES^® FTSE/XINHUA CHINA 25 INDEX FUND

July 31, 2009

Security	Shares	Value
COMMON STOCKS – 99.74%
AIRLINES – 1.06%
Air China Ltd. Class Ha,b	185,952,000	$	119,968,258
			119,968,258
BANKS – 36.98%
Bank of China Ltd. Class H	1,337,424,000		666,119,136
Bank of Communications Co. Ltd. Class Hb	364,752,000		448,995,049
BOC Hong Kong (Holdings) Ltd.	226,182,000		482,129,359
China CITIC Bank Class Hb	523,884,000		365,026,498
China Construction Bank Class Hb	1,240,872,000		1,000,696,770
China Merchants Bank Co. Ltd. Class Hb	190,422,399		447,674,028
Industrial and Commercial Bank of China Ltd. Class H	1,067,436,000		768,548,956
			4,179,189,796
COAL – 7.08%
China Coal Energy Co. Class Hb	232,440,000		325,713,821
China Shenhua Energy Co. Ltd. Class Hb	116,220,000		474,624,421
			800,338,242
ELECTRIC – 2.28%
Datang International Power Generation Co. Ltd. Class Hb	185,952,000		122,127,688
Huaneng Power International Inc. Class Hb	171,648,000		135,324,196
			257,451,884
ENGINEERING & CONSTRUCTION – 4.77%
China Communications Construction Co. Ltd. Class Hb	250,320,000		324,929,413
China Railway Group Ltd. Class Ha,b	237,804,000		214,175,640
			539,105,053

Security	Shares	Value
INSURANCE – 12.28%
China Life Insurance Co. Ltd. Class Hb	205,620,000	$	911,355,024
Ping An Insurance (Group) Co. of China Ltd. Class Hb	53,640,000		476,181,702
			1,387,536,726
MINING – 4.14%
Aluminum Corp. of China Ltd. Class Hb	221,712,000		258,042,495
Zijin Mining Group Co. Ltd. Class Hb	225,288,000		210,170,547
			468,213,042
OIL & GAS – 11.98%
China Petroleum & Chemical Corp. Class Hb	504,216,000		452,815,576
CNOOC Ltd.	328,992,000		442,332,195
PetroChina Co. Ltd. Class Hb	386,208,000		458,961,643
			1,354,109,414
TELECOMMUNICATIONS – 17.30%
China Mobile Ltd.	104,598,000		1,098,609,325
China Telecom Corp. Ltd. Class Hb	811,752,000		423,155,732
China Unicom (Hong Kong) Ltd.b	300,384,000		433,325,349
			1,955,090,406
TRANSPORTATION – 1.87%
China COSCO Holdings Co. Ltd. Class Hb	145,722,000		210,590,435
			210,590,435
TOTAL COMMON STOCKS
(Cost: $9,433,286,419)			11,271,593,256

42 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® FTSE/XINHUA CHINA 25 INDEX FUND

July 31, 2009

Security	Shares	Value
SHORT-TERM INVESTMENTS – 7.15%
MONEY MARKET FUNDS – 7.15%
Barclays Global Investors Funds Institutional Money Market Fund, SL Agency Shares 0.33%c,d,e	705,189,735	$	705,189,735
Barclays Global Investors Funds Prime Money Market Fund, SL Agency Shares 0.26%c,d,e	97,647,868		97,647,868
Barclays Global Investors Funds Treasury Money Market Fund, SL Agency Shares 0.12%c,d	5,222,128		5,222,128
			808,059,731
TOTAL SHORT-TERM INVESTMENTS
(Cost: $808,059,731)			808,059,731
TOTAL INVESTMENTS IN SECURITIES – 106.89%
(Cost: $10,241,346,150)			12,079,652,987
Other Assets, Less Liabilities – (6.89)%			(778,982,956	)
NET ASSETS – 100.00%		$	11,300,670,031

^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 All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 43

Schedule of Investments

iSHARES^® FTSE CHINA (HK LISTED) INDEX FUND

July 31, 2009

Security	Shares	Value
COMMON STOCKS – 99.81%
AIRLINES – 0.62%
Air China Ltd. Class Ha	288,000	$	185,805
China Eastern Airlines Corp. Ltd. Class Ha	126,000		40,808
China Southern Airlines Co. Ltd. Class Ha,b	109,000		39,380
			265,993
AUTO MANUFACTURERS – 1.28%
Denway Motors Ltd.	432,000		214,605
Dongfeng Motor Group Co. Ltd. Class H	270,000		287,766
Great Wall Motor Co. Ltd. Class H	40,500		46,091
			548,462
AUTO PARTS & EQUIPMENT – 0.20%
Weichai Power Co. Ltd. Class H	18,200		83,132
			83,132
BANKS – 29.02%
Bank of China Ltd. Class H	4,977,000		2,478,851
Bank of Communications Co. Ltd. Class H	612,000		753,347
BOC Hong Kong (Holdings) Ltd.	342,000		729,007
China CITIC Bank Class Hb	891,000		620,822
China Construction Bank Class H	5,616,000		4,529,003
China Merchants Bank Co. Ltd. Class H	301,950		709,870
Industrial and Commercial Bank of China (Asia) Ltd.	63,000		119,171
Industrial and Commercial Bank of China Ltd. Class H	3,411,000		2,455,904
			12,395,975
BEVERAGES – 0.29%
Tsingtao Brewery Co. Ltd. Class H	36,000		124,954
			124,954
BUILDING MATERIALS – 1.53%
Anhui Conch Cement Co. Ltd. Class H	36,000		260,592
China National Building Material Co. Ltd. Class H	180,000		392,049
			652,641

Security	Shares	Value
CHEMICALS – 0.50%
China BlueChemical Ltd. Class H	126,000	$	70,722
Sinopec Shanghai Petrochemical Co. Ltd. Class Ha	180,000		82,683
Sinopec Yizheng Chemical Fibre Co. Ltd. Class Ha	234,000		57,971
			211,376
COAL – 4.91%
China Coal Energy Co. Class Hb	378,000		529,684
China Shenhua Energy Co. Ltd. Class H	301,500		1,231,279
Yanzhou Coal Mining Co. Ltd. Class H	216,000		335,564
			2,096,527
COMMERCIAL SERVICES – 1.11%
Anhui Expressway Co. Class H	72,000		44,500
COSCO Pacific Ltd.	90,000		125,651
Jiangsu Expressway Co. Ltd. Class H	72,000		63,081
Shenzhen Expressway Co. Ltd. Class H	126,000		63,894
Shenzhen International Holdings Ltd.	990,000		74,090
Zhejiang Expressway Co. Ltd. Class Hb	108,000		104,655
			475,871
COMPUTERS – 0.60%
Lenovo Group Ltd.	540,000		256,411
			256,411
DIVERSIFIED FINANCIAL SERVICES – 0.66%
China Everbright Ltd.	90,000		281,611
			281,611
ELECTRIC – 1.96%
China Resources Power Holdings Co. Ltd.	109,600		283,544
Datang International Power Generation Co. Ltd. Class Hb	378,000		248,259
Huadian Power International Corp. Ltd. Class Ha,b	198,000		75,878
Huaneng Power International Inc. Class Hb	288,000		227,054
			834,735

44 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® FTSE CHINA (HK LISTED) INDEX FUND

July 31, 2009

Security	Shares	Value
ELECTRICAL COMPONENTS & EQUIPMENT – 1.17%
BYD Co. Ltd. Class Ha	63,000	$	349,140
Dongfang Electric Corp. Ltd. Class H	18,000		88,141
Harbin Power Equipment Co. Ltd. Class H	54,000		63,964
			501,245
ENGINEERING & CONSTRUCTION – 2.71%
Beijing Capital International Airport Co. Ltd. Class Ha	126,000		89,744
China Communications Construction Co. Ltd. Class H	378,000		490,665
China Railway Construction Corp. Class H	148,500		236,832
China Railway Group Ltd. Class Ha	378,000		340,442
			1,157,683
ENVIRONMENTAL CONTROL – 0.02%
Tianjin Capital Environmental Protection Group Co. Ltd. Class H	36,000		10,173
			10,173
FOOD – 0.46%
China Foods Ltd.	180,000		111,251
Lianhua Supermarket Holdings Co. Ltd. Class H	45,000		82,799
			194,050
HOLDING COMPANIES – DIVERSIFIED – 3.38%
Beijing Enterprises Holdings Ltd.	36,000		180,928
China Merchants Holdings (International) Co. Ltd.	108,000		356,746
China Resources Enterprise Ltd.	90,000		225,057
CITIC Pacific Ltd.	90,000		256,644
Guangdong Investment Ltd.	234,000		131,039
Shanghai Industrial Holdings Ltd.b	54,000		292,643
			1,443,057
INSURANCE – 10.85%
China Insurance International Holdings Co. Ltd.a	54,000		163,044
China Life Insurance Co. Ltd. Class H	612,000		2,712,524
PICC Property and Casualty Co. Ltd. Class Ha	360,000		281,030

Security	Shares	Value
Ping An Insurance (Group) Co. of China Ltd. Class H	166,500	$	1,478,081
			4,634,679
IRON & STEEL – 0.87%
Angang New Steel Co. Ltd. Class H	108,000		244,984
Maanshan Iron & Steel Co. Ltd. Class Ha	162,000		126,046
			371,030
MACHINERY – 0.29%
Shanghai Electric Group Co. Ltd. Class H	234,000		122,887
			122,887
MACHINERY – CONSTRUCTION/MINING – 0.26%
China National Materials Co. Ltd. Class H	117,000		110,810
			110,810
METAL FABRICATE & HARDWARE – 0.68%
Jiangxi Copper Co. Ltd. Class H	126,000		290,692
			290,692
MINING – 2.15%
Aluminum Corp. of China Ltd. Class H	342,000		398,041
China Molybdenum Co. Ltd. Class H	81,000		74,206
Zhaojin Mining Industry Co. Ltd. Class H	45,000		74,554
Zijin Mining Group Co. Ltd. Class H	396,000		369,427
			916,228
OIL & GAS – 12.46%
China Petroleum & Chemical Corp. Class H	1,440,000		1,293,205
CNOOC Ltd.	1,386,000		1,863,487
CNPC Hong Kong Ltd.b	90,000		91,161
PetroChina Co. Ltd. Class H	1,746,000		2,074,911
			5,322,764
OIL & GAS SERVICES – 0.18%
China Oilfield Services Ltd. Class H	72,000		78,503
			78,503
PHARMACEUTICALS – 0.02%
Guangzhou Pharmaceutical Co. Ltd. Class H	18,000		9,267
			9,267

SCHEDULES OF INVESTMENTS 45

Schedule of Investments (Continued)

iSHARES^® FTSE CHINA (HK LISTED) INDEX FUND

July 31, 2009

Security	Shares	Value
REAL ESTATE – 2.70%
Beijing North Star Co. Class H	72,000	$	30,844
China Overseas Land & Investment Ltd.	325,040		801,900
Guangzhou R&F Properties Co. Ltd. Class H	100,800		222,149
Shenzhen Investment Ltd.	198,000		98,872
			1,153,765
SHIPBUILDING – 0.09%
Guangzhou Shipyard International Co. Ltd. Class Hb	18,000		36,790
			36,790
SOFTWARE – 0.08%
Travelsky Technology Ltd. Class H	45,000		32,574
			32,574
TELECOMMUNICATIONS – 16.85%
China Communications Services Corp. Ltd. Class H	144,000		91,602
China Mobile Ltd.	504,000		5,293,592
China Telecom Corp. Ltd. Class H	1,458,000		760,036
China Unicom (Hong Kong) Ltd.b	630,128		909,005
ZTE Corp. Class H	32,440		141,479
			7,195,714
TEXTILES – 0.05%
Weiqiao Textile Co. Ltd.	36,000		22,715
			22,715
TRANSPORTATION – 1.86%
China COSCO Holdings Co. Ltd. Class H	216,000		312,153
China Shipping Container Lines Co. Ltd. Class Ha,b	270,000		105,561
China Shipping Development Co. Ltd. Class H	90,000		136,335
China South Locomotive and Rolling Stock Corp. Ltd. Class H	180,000		111,483
Guangshen Railway Co. Ltd. Class H	180,000		87,096
Sinotrans Ltd. Class H	171,000		43,246
			795,874
TOTAL COMMON STOCKS
(Cost: $33,175,556)			42,628,188

Security	Shares	Value
SHORT-TERM INVESTMENTS – 4.10%
MONEY MARKET FUNDS – 4.10%
Barclays Global Investors Funds Institutional Money Market Fund, SL Agency Shares 0.33%c,d,e	1,511,658	$	1,511,658
Barclays Global Investors Funds Prime Money Market Fund, SL Agency Shares 0.26%c,d,e	209,320		209,320
Barclays Global Investors Funds Treasury Money Market Fund, SL Agency Shares 0.12%c,d	31,341		31,341
			1,752,319
TOTAL SHORT-TERM INVESTMENTS
(Cost: $1,752,319)			1,752,319
TOTAL INVESTMENTS IN SECURITIES – 103.91%
(Cost: $34,927,875)			44,380,507
Other Assets, Less Liabilities – (3.91)%			(1,668,744	)
NET ASSETS – 100.00%		$	42,711,763

^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 All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

46 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI ACWI INDEX FUND

July 31, 2009

Security	Shares	Value
COMMON STOCKS – 98.50%
AUSTRALIA – 3.04%
AMP Ltd.	98,643	$	460,879
ASX Ltd.	17,554		548,424
Australia and New Zealand Banking Group Ltd.	50,959		785,019
BHP Billiton Ltd.	68,787		2,164,493
BlueScope Steel Ltd.	175,016		490,334
Brambles Ltd.	75,849		377,712
Commonwealth Bank of Australia	24,759		880,969
CSL Ltd.	23,318		592,225
Foster’s Group Ltd.	149,733		670,950
Macquarie Group Ltd.	12,969		474,614
National Australia Bank Ltd.	33,929		686,273
Newcrest Mining Ltd.	21,484		535,822
Orica Ltd.	27,657		516,415
QBE Insurance Group Ltd.	27,379		443,850
Rio Tinto Ltd.	14,341		720,112
Santos Ltd.	67,642		816,520
Suncorp-Metway Ltd.	60,149		355,035
Telstra Corp. Ltd.	160,082		469,787
Wesfarmers Ltd.	33,143		712,256
Westfield Group	42,444		399,788
Westpac Banking Corp.	33,929		611,807
Woodside Petroleum Ltd.	15,851		602,222
Woolworths Ltd.	29,475		667,735
			14,983,241
AUSTRIA – 0.21%
Erste Group Bank AG	9,432		327,486
OMV AG	5,792		228,693
Telekom Austria AG	9,224		140,058
voestalpine AG	12,052		332,678
			1,028,915
BELGIUM – 0.27%
Anheuser-Busch InBev NV	22,833		903,650
Groupe Bruxelles Lambert SA	5,502		434,330
			1,337,980
BRAZIL – 0.67%
Companhia Siderurgica Nacional SA SP ADR	12,494		319,846
Itau Unibanco Holding SA SP ADR	81,506		1,458,142

Security	Shares	Value
Petroleo Brasileiro SA SP ADR	26,200	$	1,080,488
Vale SA SP ADR	23,060		454,974
			3,313,450
CANADA – 4.18%
Bank of Montreal	14,410		720,034
Bank of Nova Scotia	19,650		834,639
Barrick Gold Corp.	22,139		770,390
Brookfield Asset Management Inc. Class A	21,353		446,969
Cameco Corp.	18,602		509,314
Canadian Imperial Bank of Commerce	10,742		658,868
Canadian National Railway Co.	15,589		755,441
Canadian Natural Resources Ltd.	13,362		800,410
Canadian Pacific Railway Ltd.	9,432		417,901
Enbridge Inc.	16,637		641,566
EnCana Corp.	13,750		734,876
Goldcorp Inc.	19,257		729,062
Husky Energy Inc.	16,637		487,830
IAMGOLD Corp.	39,038		412,371
Imperial Oil Ltd.	12,183		486,261
Kinross Gold Corp.	26,593		522,710
Manulife Financial Corp.	24,497		592,768
Nexen Inc.	23,449		484,337
Penn West Energy Trust	27,248		354,116
Petro-Canada	14,803		609,181
Potash Corp. of Saskatchewan Inc.	6,550		608,046
Power Corp. of Canada	19,781		553,304
Research In Motion Ltd.a	12,183		922,036
Rogers Communications Inc. Class B	15,744		435,869
Royal Bank of Canada	23,711		1,124,688
Shaw Communications Inc. Class B	32,226		563,679
SNC-Lavalin Group Inc.	15,196		638,988
Sun Life Financial Inc.	14,017		477,390
Suncor Energy Inc.	21,484		692,353
Talisman Energy Inc.	45,719		704,117
Teck Resources Ltd. Class Ba	20,305		532,464
Toronto-Dominion Bank (The)	15,720		917,666
TransCanada Corp.	16,899		478,943
			20,618,587
CHILE – 0.16%
LAN Airlines SA SP ADR	64,379		787,355
			787,355

SCHEDULES OF INVESTMENTS 47

Schedule of Investments (Continued)

iSHARES^® MSCI ACWI INDEX FUND

July 31, 2009

Security	Shares	Value
CHINA – 2.11%
Bank of China Ltd. Class H	1,572,000	$	782,952
China Communications Construction Co. Ltd. Class H	262,000		340,091
China Construction Bank Class H	875,000		705,641
China Life Insurance Co. Ltd. Class H	262,000		1,161,244
China Mengniu Dairy Co. Ltd.a	131,000		313,722
China Mobile Ltd.	131,000		1,375,914
China Petroleum & Chemical Corp. Class Hb	786,000		705,874
China Shenhua Energy Co. Ltd. Class H	131,000		534,984
China Shipping Container Lines Co. Ltd. Class Ha,b	1,179,000		460,948
CNOOC Ltd.	655,000		880,652
Industrial and Commercial Bank of China Ltd. Class H	1,572,000		1,131,833
PetroChina Co. Ltd. Class H	524,000		622,711
Ping An Insurance (Group) Co. of China Ltd. Class H	97,500		865,543
Shimao Property Holdings Ltd.	262,000		526,701
			10,408,810
CZECH REPUBLIC – 0.22%
CEZ AS	8,932		477,937
Komercni Banka AS	3,412		585,322
			1,063,259
DENMARK – 0.29%
Danske Bank A/Sa	19,126		396,042
Novo Nordisk A/S Class B	10,087		590,602
Vestas Wind Systems A/Sa	6,288		440,604
			1,427,248
EGYPT – 0.11%
Orascom Construction Industries Co. SP GDR	4,766		189,734
Orascom Telecom Holding SAE SP GDRa,c	10,614		367,244
			556,978
FINLAND – 0.49%
Fortum OYJ	15,851		365,182
Metso OYJ	14,541		304,903

Security	Shares	Value
Nokia OYJ	57,509	$	761,522
Sampo OYJ Class A	25,283		525,129
UPM-Kymmene OYJ	44,409		462,762
			2,419,498
FRANCE – 4.27%
Accor SA	8,908		378,248
Alcatel-Lucenta	114,625		315,269
ALSTOM	5,764		393,641
ArcelorMittal	15,157		542,593
AXA	24,890		523,318
BNP Paribas	16,637		1,206,480
Bouygues SA	9,170		388,528
Cap Gemini SA	11,921		547,508
Carrefour SA	11,528		538,284
Compagnie de Saint-Gobain	11,277		454,858
Compagnie Generale de Geophysique-Veritasa	18,602		375,024
Compagnie Generale des Etablissements Michelin Class B	7,074		508,077
Credit Agricole SA	33,410		474,381
Danone SA	12,227		652,570
Essilor International SA	11,528		635,775
France Telecom SA	35,632		884,557
GDF Suez	18,743		712,286
Lafarge SA	4,782		343,594
L’Air Liquide SA	5,117		531,474
L’Oreal SA	5,240		451,758
LVMH Moet Hennessy Louis Vuitton SA	6,157		552,464
Pernod Ricard SA	7,108		549,418
PPR SA	4,716		522,787
PSA Peugeot Citroen SAa	8,777		264,800
Renault SAa	8,122		344,528
Sanofi-Aventis	19,650		1,280,390
Schneider Electric SA	5,764		520,878
SES SA	27,903		548,294
Societe Generale	8,384		535,483
Suez Environnement SA	7,353		139,378
Technip SA	8,908		535,736
Total SA	39,169		2,160,744
Unibail-Rodamco SE	2,620		455,398
Vallourec SA	3,013		394,276

48 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI ACWI INDEX FUND

July 31, 2009

Security	Shares	Value
Veolia Environnement	8,253	$	282,338
Vinci SA	9,694		490,786
Vivendi SA	23,449		599,238
			21,035,159
GERMANY – 3.33%
Adidas AG	11,266		473,581
Allianz SE Registered	9,301		912,505
BASF SE	14,410		718,311
Bayer AG	15,327		935,688
Bayerische Motoren Werke AG	12,445		572,192
Commerzbank AGa,b	42,837		334,027
Daimler AG Registered	20,960		964,880
Deutsche Bank AG Registered	11,397		733,416
Deutsche Boerse AG	4,847		382,074
Deutsche Post AG Registered	22,925		360,934
Deutsche Telekom AG Registered	50,304		641,153
E.ON AG	32,619		1,228,283
Fresenius Medical Care AG & Co. KGaA	12,838		586,439
K+S AG	8,122		453,459
Linde AG	5,240		491,949
MAN SE	4,978		342,292
Merck KGaA	5,240		485,114
METRO AG	7,729		445,215
Muenchener Rueckversicherungs- Gesellschaft AG Registered	4,454		669,922
RWE AG	8,908		748,287
SAP AG	19,912		931,598
Siemens AG Registered	18,209		1,445,685
SolarWorld AGb	7,467		180,603
ThyssenKrupp AG	13,755		421,225
Volkswagen AG	2,620		937,021
			16,395,853
GREECE – 0.18%
National Bank of Greece SA SP ADR	148,710		881,850
			881,850
HONG KONG – 1.25%
Esprit Holdings Ltd.	52,400		378,630
Hang Lung Properties Ltd.	262,000		960,097
Hang Seng Bank Ltd.	39,300		638,431
Henderson Land Development Co. Ltd.b	131,000		865,440

Security	Shares	Value
Hong Kong and China Gas Co. Ltd. (The)	262,400	$	587,095
New World Development Co. Ltd.	262,000		625,415
Swire Pacific Ltd. Class A	131,000		1,471,416
Wharf (Holdings) Ltd. (The)	131,000		616,119
			6,142,643
HUNGARY – 0.21%
OTP Bank Nyrta	18,377		390,700
Richter Gedeon Nyrt	3,182		625,075
			1,015,775
INDIA – 0.87%
HDFC Bank Ltd. SP ADR	10,503		1,026,878
ICICI Bank Ltd. SP ADR	21,881		685,969
Infosys Technologies Ltd. SP ADR	20,725		891,797
Reliance Industries Ltd. SP GDRa,d	10,090		817,290
Wipro Ltd. SP ADRb	60,260		874,975
			4,296,909
INDONESIA – 0.27%
PT Astra International Tbk	196,500		580,096
PT Bank Central Asia Tbk	1,965,000		747,393
			1,327,489
IRELAND – 0.15%
Elan Corp. PLCa	18,471		149,267
Ingersoll-Rand PLC	20,186		582,972
			732,239
ISRAEL – 0.43%
Israel Chemicals Ltd.	44,933		511,481
Teva Pharmaceutical Industries Ltd.	30,523		1,632,203
			2,143,684
ITALY – 1.52%
Assicurazioni Generali SpA	16,418		372,193
Atlantia SpA	17,640		387,141
Banco Popolare SpAa	42,837		344,351
Enel SpA	113,273		612,260
Eni SpA	37,900		877,455
Finmeccanica SpA	38,812		585,474
Intesa Sanpaolo SpAa	76,481		283,276
Mediobanca SpA	55,806		779,322
Saipem SpA	16,947		456,506
Snam Rete Gas SpA	273,135		1,189,786
Telecom Italia SpA	263,834		410,708

SCHEDULES OF INVESTMENTS 49

Schedule of Investments (Continued)

iSHARES^® MSCI ACWI INDEX FUND

July 31, 2009

Security	Shares	Value
UniCredit SpAa	227,416	$	662,571
Unione di Banche Italiane ScpA	39,488		549,484
			7,510,527
JAPAN – 9.55%
AEON Co. Ltd.	52,400		506,413
AEON Credit Service Co. Ltd.	39,300		445,038
Aisin Seiki Co. Ltd.	26,200		670,172
Asahi Breweries Ltd.	26,200		414,213
Astellas Pharma Inc.	26,200		993,561
Bank of Yokohama Ltd. (The)	131,000		705,951
Bridgestone Corp.	39,300		678,704
Canon Inc.	26,200		971,543
Chubu Electric Power Co. Inc.	26,200		627,512
Daiichi Sankyo Co. Ltd.	26,200		473,386
Daikin Industries Ltd.	26,200		946,772
Denso Corp.	26,200		769,253
Eisai Co. Ltd.	26,200		927,507
FUJIFILM Holdings Corp.	26,200		850,444
Fujitsu Ltd.	131,000		855,948
Hitachi Ltd.	131,000		437,607
Honda Motor Co. Ltd.	26,200		839,435
Hoya Pentax HD Corp.	26,200		628,888
Japan Prime Realty Investment Corp.	262		560,632
JFE Holdings Inc.	26,200		1,048,605
Kansai Electric Power Co. Inc. (The)	39,300		873,150
Kobe Steel Ltd.	262,000		503,661
Komatsu Ltd.	39,300		639,484
Kyocera Corp.	13,100		1,048,605
Leopalace21 Corp.	52,400		446,414
Marubeni Corp.	131,000		601,366
Mitsubishi Chemical Holdings Corp.	131,000		584,852
Mitsubishi Corp.	26,200		520,174
Mitsubishi Heavy Industries Ltd.	262,000		1,043,101
Mitsubishi Motors Corp.a,b	262,000		481,643
Mitsubishi UFJ Financial Group Inc.	248,900		1,479,882
Mitsubishi UFJ Lease & Finance Co. Ltd.	11,790		359,168
Mizuho Financial Group Inc.	249,100		562,598
Murata Manufacturing Co. Ltd.	13,100		638,521
NEC Corp.a	262,000		913,745
Nippon Oil Corp.	131,000		690,814
Nippon Steel Corp.	131,000		521,550

Security	Shares	Value
Nippon Telegraph and
Telephone Corp.	14,200	$	583,245
Nissan Motor Co. Ltd.	78,600		568,889
Nitto Denko Corp.	26,200		839,435
Nomura Holdings Inc.	78,600		684,483
NTT DoCoMo Inc.	524		755,216
ORIX Corp.	5,240		329,719
SBI Holdings Inc.	2,358		473,854
Secom Co. Ltd.	13,100		557,330
Seven & I Holdings Co. Ltd.	26,200		610,998
Shin-Etsu Chemical Co. Ltd.	13,100		701,823
SoftBank Corp.	26,200		554,577
Sony Corp.	26,200		736,226
Sumitomo Chemical Co. Ltd.	131,000		645,402
Sumitomo Corp.	52,400		515,771
Sumitomo Electric Industries Ltd.	52,400		648,979
Sumitomo Metal Industries Ltd.	262,000		649,530
Sumitomo Mitsui Financial Group Inc.	13,100		557,330
Sumitomo Trust and Banking Co. Ltd. (The)	131,000		712,831
Suzuki Motor Corp.	26,200		657,787
T&D Holdings Inc.	19,650		573,843
Takeda Pharmaceutical Co. Ltd.	13,100		527,055
TDK Corp.	13,100		685,309
Terumo Corp.	13,100		661,915
Tokio Marine Holdings Inc.	26,200		756,867
Tokyo Electric Power Co. Inc. (The)	26,200		667,420
Tokyo Electron Ltd.	13,100		682,557
Toray Industries Inc.	131,000		652,282
Toshiba Corp.	131,000		577,972
Toyota Motor Corp.	65,500		2,745,365
Yamada Denki Co. Ltd.	7,860		488,799
			47,063,121
MEXICO – 0.63%
America Movil SAB de CV Series L	235,800		505,002
Cemex SAB de CV CPOa	269,191		253,129
Fomento Economico Mexicano SAB de CV BD Unitsb	183,400		707,725
Grupo Televisa SA CPO	144,100		518,133
Telefonos de Mexico SAB de CV Series L	406,100		321,040

50 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI ACWI INDEX FUND

July 31, 2009

Security	Shares	Value
Telmex Internacional SAB de CV Series L	406,100	$	257,139
Wal-Mart de Mexico SAB de CV Series V	157,200		534,554
			3,096,722
NETHERLANDS – 1.29%
Aegon NV	48,732		356,365
Akzo Nobel NV	8,908		486,166
Heineken NV	11,528		457,790
ING Groep NV CVA	41,920		534,770
Koninklijke Ahold NV	53,448		604,616
Koninklijke DSM NV	16,113		572,933
Koninklijke KPN NV	38,383		573,832
Koninklijke Philips Electronics NV	27,772		629,980
Reed Elsevier NV	39,693		413,845
TNT NV	18,894		446,405
Unilever NV CVA	29,344		797,519
Wolters Kluwer NV	24,104		471,593
			6,345,814
NORWAY – 0.31%
DnB NOR ASAa	46,114		399,571
Orkla ASA	66,864		527,231
StatoilHydro ASA	14,150		301,118
Telenor ASAa	31,450		288,858
			1,516,778
PERU – 0.10%
Compania de Minas Buenaventura SA SP ADR	19,126		498,232
			498,232
PORTUGAL – 0.17%
BRISA – Auto-estradas de Portugal SA	46,898		386,305
Energias de Portugal SA	118,555		467,770
			854,075
RUSSIA – 0.72%
Mobile TeleSystems SP ADR	14,410		605,076
OAO Gazprom SP ADR	65,505		1,352,678
OAO NovaTek SP GDRc	6,943		299,313
Rostelecom SP ADR	4,391		133,047
Surgutneftegaz SP ADR	53,458		415,903
Uralkali SP GDRc	9,319		171,470

Security	Shares	Value
Vimpel-Communications SP ADRa	21,222	$	286,709
Wimm-Bill-Dann Foods OJSC SP ADRa	4,323		294,656
			3,558,852
SINGAPORE – 0.59%
CapitaLand Ltd.	262,000		694,040
Keppel Corp. Ltd.	131,000		762,172
Singapore Exchange Ltd.	131,000		792,150
Singapore Telecommunications Ltd.	262,000		635,900
			2,884,262
SOUTH AFRICA – 1.01%
FirstRand Ltd.	309,946		599,814
Gold Fields Ltd.	39,038		460,404
Impala Platinum Holdings Ltd.	17,161		411,550
MTN Group Ltd.	36,848		601,684
Naspers Ltd. Class N	34,846		1,029,079
Sanlam Ltd.	282,305		712,344
Sasol Ltd.	13,231		469,226
Standard Bank Group Ltd.	56,854		677,267
			4,961,368
SOUTH KOREA – 1.66%
KB Financial Group Inc. SP ADRa	25,545		1,096,136
Korea Electric Power Corp. SP ADRa	71,598		957,265
KT Corp. SP ADR	50,355		808,701
LG Display Co. Ltd. SP ADRb	43,689		631,306
POSCO SP ADR	10,611		1,072,454
Samsung Electronics Co. Ltd. SP GDRc	6,550		1,938,800
Shinhan Financial Group Co. Ltd. SP ADR	15,790		1,062,351
SKTelecom Co. Ltd. SP ADR	36,680		617,324
			8,184,337
SPAIN – 1.99%
Acciona SA	2,751		330,545
Actividades de Construcciones y Servicios SA	15,720		833,312
Banco Bilbao Vizcaya Argentaria SA	83,849		1,369,462
Banco de Sabadell SA	77,814		516,301
Banco Popular Espanol SAb	69,881		627,632
Banco Santander SA	140,883		2,029,327
Gamesa Corporacion Tecnologica SA	16,768		360,872
Iberdrola SA	83,709		714,444

SCHEDULES OF INVESTMENTS 51

Schedule of Investments (Continued)

iSHARES^® MSCI ACWI INDEX FUND

July 31, 2009

Security	Shares	Value
Industria de Diseno Textil SA	13,231	$	707,936
Repsol YPF SA	28,689		662,577
Telefonica SA	66,941		1,656,577
			9,808,985
SWEDEN – 0.99%
Atlas Copco AB Class A	42,706		504,127
Hennes & Mauritz AB Class B	12,183		717,404
Nordea Bank AB	72,850		699,971
Sandvik AB	41,920		395,591
Scania AB Class B	30,392		352,508
Svenska Handelsbanken AB Class A	23,318		564,922
Telefonaktiebolaget LM Ericsson AB Class B	76,771		746,076
TeliaSonera AB	89,604		569,457
Volvo AB Class B	48,470		350,952
			4,901,008
SWITZERLAND – 2.97%
ABB Ltd. Registereda	49,518		898,110
Adecco SA Registered	12,838		614,315
Compagnie Financiere Richemont SA
Class A Bearer Units	12,987		316,877
Credit Suisse Group AG Registered	24,759		1,161,746
Holcim Ltd. Registereda	11,310		682,015
Julius Baer Holding AG Registered	8,908		421,294
Lindt & Spruengli AG Participation Certificates	262		516,088
Nestle SA Registered	78,731		3,217,272
Novartis AG Registered	40,741		1,852,604
Roche Holding AG Genusschein	15,196		2,379,118
Swiss Reinsurance Co. Registered	9,170		349,333
Syngenta AG Registered	2,358		540,286
UBS AG Registereda	70,118		1,016,996
Zurich Financial Services AG Registered	3,537		690,146
			14,656,200
TAIWAN – 1.29%
AU Optronics Corp. SP ADRa	69,205		770,944
Chunghwa Telecom Co. Ltd. SP ADR	107,969		1,885,139
Siliconware Precision Industries Co. SP ADRb	109,710		743,834

Security	Shares	Value
Taiwan Semiconductor Manufacturing Co. Ltd. SP ADR	175,234	$	1,834,700
United Microelectronics Corp. SP ADRb	329,102		1,118,947
			6,353,564
THAILAND – 0.27%
Bangkok Bank PCL NVDR	224,010		730,682
Kasikornbank PCL NVDR	278,049		592,376
			1,323,058
UNITED KINGDOM – 8.88%
Anglo American PLC	23,728		759,213
AstraZeneca PLC	32,095		1,491,440
Aviva PLC	61,177		355,739
BAE Systems PLC	88,032		448,048
Barclays PLCe	247,459		1,240,185
BG Group PLC	67,334		1,115,181
BHP Billiton PLC	45,077		1,168,044
BP PLC	399,812		3,295,582
British American Tobacco PLC	32,757		1,009,009
British Land Co. PLCb	62,751		452,538
British Sky Broadcasting Group PLC	60,391		546,651
BT Group PLC	167,680		352,072
Cadbury PLC	38,383		376,073
Carnival PLC	15,851		458,298
Centrica PLC	156,676		572,089
Compass Group PLC	108,730		581,332
Diageo PLC	44,802		696,699
Experian PLC	77,814		637,279
GlaxoSmithKline PLC	111,874		2,131,054
HSBC Holdings PLC	354,248		3,557,509
Imperial Tobacco Group PLC	19,912		564,820
International Power PLC	84,364		357,000
J Sainsbury PLC	92,748		488,195
Johnson Matthey PLC	16,768		393,631
Land Securities Group PLC	36,578		323,822
Legal & General Group PLC	279,685		298,839
Lonmin PLCa	11,606		265,718
Man Group PLC	61,439		281,888
Marks & Spencer Group PLC	87,639		502,348
National Grid PLC	59,343		549,462

52 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI ACWI INDEX FUND

July 31, 2009

Security	Shares	Value
Old Mutual PLC	283,615	$	450,537
Pearson PLC	52,531		603,959
Prudential PLC	56,985		423,473
Reckitt Benckiser PLC	12,052		574,637
Reed Elsevier PLC	59,867		420,078
Rio Tinto PLC	33,466		1,380,937
Rolls-Royce Group PLCa	77,945		535,299
Royal Dutch Shell PLC Class A	71,919		1,874,310
Royal Dutch Shell PLC Class B	51,745		1,333,106
SABMiller PLC	30,392		698,845
Scottish & Southern Energy PLC	26,986		495,258
Shire PLC	37,466		551,564
Smith & Nephew PLC	50,566		398,616
Standard Chartered PLC	30,553		719,769
Standard Life PLC	154,842		507,762
Tesco PLC	159,951		974,517
Thomson Reuters PLC	9,302		295,318
3i Group PLC	70,647		320,622
Tomkins PLC	302,086		886,440
Unilever PLC	29,344		768,638
Vodafone Group PLC	1,130,530		2,299,704
Wm Morrison Supermarkets PLC	116,983		522,669
Wolseley PLCa	16,427		364,657
WPP PLC	58,164		445,253
Xstrata PLC	47,733		639,562
			43,755,288
UNITED STATES – 41.85%
Abbott Laboratories	30,261		1,361,442
Accenture Ltd. Class A	19,388		679,937
ACE Ltd.	11,397		559,137
Adobe Systems Inc.a	19,388		628,559
AES Corp. (The)a	35,108		449,031
Aetna Inc.	12,969		349,774
Aflac Inc.	10,611		401,732
Air Products and Chemicals Inc.	7,074		527,720
Alcoa Inc.	21,746		255,733
Allergan Inc.	10,218		545,948
Allstate Corp. (The)	14,410		387,773
Altria Group Inc.	46,898		822,122
Amazon.com Inc.a	8,908		763,950
American Electric Power Co. Inc.	15,589		482,635
American Express Co.	15,720		445,348

Security	Shares	Value
American Tower Corp. Class Aa	17,030	$	580,553
Ameriprise Financial Inc.	12,445		345,971
Amgen Inc.a	25,021		1,559,059
Anadarko Petroleum Corp.	11,397		549,335
Apache Corp.	7,729		648,850
Apollo Group Inc. Class Aa	5,764		397,947
Apple Inc.a	20,174		3,296,230
Applied Materials Inc.	37,204		513,415
Archer-Daniels-Midland Co.	15,065		453,758
AT&T Inc.	122,616		3,216,218
Automatic Data Processing Inc.	16,637		619,728
Avon Products Inc.	16,899		547,190
Baker Hughes Inc.	9,694		392,607
Bank of America Corp.	188,598		2,789,364
Bank of New York Mellon Corp. (The)	22,794		623,188
Baxter International Inc.	14,672		827,061
BB&T Corp.	20,174		461,581
Becton, Dickinson and Co.	7,205		469,406
Bed Bath & Beyond Inc.a	22,925		796,644
Best Buy Co. Inc.	12,848		480,130
Biogen Idec Inc.a	10,349		492,095
Boeing Co. (The)	15,851		680,166
Boston Properties Inc.	4,296		227,258
Boston Scientific Corp.a	51,352		551,520
Bristol-Myers Squibb Co.	43,754		951,212
Burlington Northern Santa Fe Corp.	8,646		679,489
C.H. Robinson Worldwide Inc.	12,052		657,196
C.R. Bard Inc.	6,550		481,883
CA Inc.	28,427		600,947
Capital One Financial Corp.	13,755		422,278
Cardinal Health Inc.	10,873		362,071
Carnival Corp.	16,113		451,003
Caterpillar Inc.	11,659		513,696
CBS Corp. Class B NVS	29,868		244,619
Celgene Corp.a	11,790		671,558
Charles Schwab Corp. (The)	33,143		592,265
Chesapeake Energy Corp.	15,589		334,228
Chevron Corp.	43,754		3,039,590
Chubb Corp.	12,576		580,760
CIGNA Corp.	13,624		386,922
Cisco Systems Inc.a	127,070		2,796,811
Citigroup Inc.	254,271		806,039

SCHEDULES OF INVESTMENTS 53

Schedule of Investments (Continued)

iSHARES^® MSCI ACWI INDEX FUND

July 31, 2009

Security	Shares	Value
CME Group Inc.	1,310	$	365,267
Coach Inc.	19,126		565,938
Coca-Cola Co. (The)	40,479		2,017,473
Cognizant Technology Solutions Corp. Class Aa	20,567		608,578
Colgate-Palmolive Co.	11,790		854,068
Comcast Corp. Class A	22,401		332,879
ConAgra Foods Inc.	31,047		609,453
ConocoPhillips	33,143		1,448,681
CONSOL Energy Inc.	8,646		307,192
Constellation Energy Group Inc.	7,991		229,342
Cooper Industries Ltd. Class A	15,196		500,708
Corning Inc.	37,597		639,149
Costco Wholesale Corp.	10,218		505,791
Coventry Health Care Inc.a	12,052		277,196
Covidien PLC	15,327		579,514
CSX Corp.	13,493		541,339
CVS Caremark Corp.	30,130		1,008,752
Danaher Corp.	8,646		529,481
Deere & Co.	8,122		355,256
Dell Inc.a	55,806		746,684
Devon Energy Corp.	9,563		555,515
DIRECTV Group Inc. (The)a,b	26,593		688,759
Dominion Resources Inc.	15,720		531,336
Dover Corp.	15,851		539,093
Dow Chemical Co. (The)	21,091		446,496
Dr Pepper Snapple Group Inc.a	8,646		212,778
Duke Energy Corp.	37,597		582,002
E.I. du Pont de Nemours and Co.	18,209		563,204
Eaton Corp.	8,253		428,496
eBay Inc.a	24,759		526,129
Edison International	12,576		406,456
El Paso Corp.	41,265		415,126
Electronic Arts Inc.a	13,493		289,695
Eli Lilly and Co.	21,091		735,865
EMC Corp.a	52,138		785,198
Emerson Electric Co.	12,445		452,749
Entergy Corp.	6,026		484,069
EOG Resources Inc.	6,681		494,594
Equity Residential	17,161		411,864
Exelon Corp.	11,397		579,651
Expeditors International Washington Inc.	15,589		528,935

Security	Shares	Value
Express Scripts Inc.a	9,956	$	697,318
Exxon Mobil Corp.	112,922		7,948,580
FedEx Corp.	7,467		506,561
Fifth Third Bancorp	53,186		505,267
FirstEnergy Corp.	9,170		377,804
Fluor Corp.	10,742		567,178
Ford Motor Co.a	65,500		524,000
FPL Group Inc.	10,087		571,630
Franklin Resources Inc.	6,550		580,854
Freeport-McMoRan Copper & Gold Inc.	9,563		576,649
Gap Inc. (The)	34,322		560,135
General Dynamics Corp.	7,729		428,109
General Electric Co.	210,779		2,824,439
General Mills Inc.	12,052		709,983
Genzyme Corp.a	8,908		462,236
Gilead Sciences Inc.a	20,174		987,114
Goldman Sachs Group Inc. (The)	10,742		1,754,169
Google Inc. Class Aa	5,240		2,321,582
H.J. Heinz Co.	16,244		624,744
Halliburton Co.	21,091		465,900
Hess Corp.	7,205		397,716
Hewlett-Packard Co.	58,688		2,541,190
Home Depot Inc. (The)	37,728		978,664
Honeywell International Inc.	13,755		477,298
Humana Inc.a	9,432		309,841
Illinois Tool Works Inc.	13,493		547,141
Intel Corp.	132,572		2,552,011
International Business Machines Corp.	26,593		3,136,112
International Game Technology	16,375		323,406
International Paper Co.	20,567		386,865
Intuit Inc.a	22,139		657,528
ITT Corp.	11,397		563,012
J.C. Penney Co. Inc.	14,279		430,512
Jacobs Engineering Group Inc.a	8,515		348,945
Johnson & Johnson	54,234		3,302,308
Johnson Controls Inc.	19,519		505,152
JPMorgan Chase & Co.	75,063		2,901,185
Juniper Networks Inc.a	23,056		602,453
Kellogg Co.	12,576		597,360
Kimberly-Clark Corp.	10,611		620,213

54 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI ACWI INDEX FUND

July 31, 2009

Security	Shares	Value
Kohl’s Corp.a,b	14,803	$	718,686
Kraft Foods Inc. Class A	31,186		883,811
Kroger Co. (The)	24,890		532,148
L-3 Communications Holdings Inc.	6,026		454,963
Laboratory Corp. of America Holdingsa	8,122		545,717
Legg Mason Inc.	9,432		265,416
Level 3 Communications Inc.a	95,892		117,947
Lincoln National Corp.	12,183		258,158
Lockheed Martin Corp.	7,205		538,646
Lowe’s Companies Inc.	34,715		779,699
Macy’s Inc.	26,724		371,731
Marathon Oil Corp.	17,423		561,892
Marriott International Inc. Class A	18,930		407,752
Marsh & McLennan Companies Inc.	26,200		535,004
MasterCard Inc. Class A	2,444		474,209
McDonald’s Corp.	22,139		1,218,973
McGraw-Hill Companies Inc. (The)	16,375		513,356
McKesson Corp.	11,266		576,256
Medco Health Solutions Inc.a	13,493		713,240
Medtronic Inc.	23,318		825,924
MEMC Electronic Materials Inc.a	10,742		189,274
Merck & Co. Inc.	48,601		1,458,516
MetLife Inc.	9,700		329,315
Microsoft Corp.	182,090		4,282,757
Mirant Corp.a	8,715		157,393
Monsanto Co.	10,742		902,328
Moody’s Corp.	17,030		404,292
Morgan Stanley	23,580		672,030
Motorola Inc.	70,871		507,436
Murphy Oil Corp.	8,515		495,573
National Oilwell Varco Inc.a	10,611		381,359
Newmont Mining Corp.	15,065		622,938
News Corp. Class A	34,846		359,959
Nike Inc. Class B	10,611		601,007
Noble Corp.	13,755		465,744
Noble Energy Inc.	8,646		528,444
Norfolk Southern Corp.	12,052		521,249
Northern Trust Corp.	8,908		532,787
Northrop Grumman Corp.	8,122		362,079
NRG Energy Inc.a	21,222		577,451
Nucor Corp.	10,611		471,871

Security	Shares	Value
NVIDIA Corp.a	24,263	$	313,721
Occidental Petroleum Corp.	17,554		1,252,302
Omnicom Group Inc.	14,279		485,486
Oracle Corp.	85,019		1,881,470
Owens-Illinois Inc.a	12,052		409,045
PACCAR Inc.	15,720		544,698
Parker Hannifin Corp.	9,825		435,051
Paychex Inc.	19,912		527,668
Peabody Energy Corp.	11,790		390,367
PepsiCo Inc.	31,178		1,769,352
Pfizer Inc.	148,292		2,362,292
PG&E Corp.	17,292		698,078
Philip Morris International Inc.	46,898		2,185,447
PNC Financial Services Group Inc. (The)	12,994		476,360
PPL Corp.	13,624		460,355
Praxair Inc.	7,991		624,736
Precision Castparts Corp.	5,502		439,115
Principal Financial Group Inc.	11,659		276,318
Procter & Gamble Co. (The)	62,356		3,461,382
Progressive Corp. (The)a	36,418		567,392
Prudential Financial Inc.	9,039		400,157
Public Service Enterprise Group Inc.	14,017		454,852
Public Storage	8,777		636,947
QUALCOMM Inc.	37,728		1,743,411
Quest Diagnostics Inc.	12,838		701,212
Questar Corp.	12,052		398,560
Raytheon Co.	10,218		479,735
Reynolds American Inc.	10,087		438,885
Safeway Inc.	20,960		396,773
SanDisk Corp.a	10,087		179,750
Schering-Plough Corp.	39,169		1,038,370
Schlumberger Ltd.	25,676		1,373,666
Seagate Technology	29,868		359,611
Sempra Energy	11,921		625,018
Simon Property Group Inc.	7,942		442,538
SLM Corp.a	26,724		237,576
Smith International Inc.	10,873		273,238
Southern Co.	18,733		588,216
Southwestern Energy Co.a	14,148		586,152
Spectra Energy Corp.	29,344		538,756
Sprint Nextel Corp.a	75,849		303,396

SCHEDULES OF INVESTMENTS 55

Schedule of Investments (Continued)

iSHARES^® MSCI ACWI INDEX FUND

July 31, 2009

Security	Shares	Value
St. Jude Medical Inc.a	14,803	$	558,221
Staples Inc.	26,336		553,583
Starbucks Corp.a	37,204		658,511
Starwood Hotels & Resorts Worldwide Inc.	13,755		324,756
State Street Corp.	9,039		454,662
Stryker Corp.	9,563		371,809
Sun Microsystems Inc.a	39,955		366,387
SunTrust Banks Inc.	12,052		235,014
Symantec Corp.a	36,418		543,721
T. Rowe Price Group Inc.	13,362		624,139
Target Corp.	17,161		748,563
Texas Instruments Inc.	34,060		819,143
Textron Inc.	26,069		350,367
Thermo Fisher Scientific Inc.a	11,528		521,988
3M Co.	14,803		1,043,908
Time Warner Cable Inc.	6,309		208,576
Time Warner Inc.	25,191		671,592
TJX Companies Inc. (The)	22,401		811,588
Transocean Ltd.a	7,205		574,166
Travelers Companies Inc. (The)	13,755		592,428
Tyco Electronics Ltd.	17,292		371,259
Tyco International Ltd.	16,506		498,811
U.S. Bancorp	32,750		668,428
Ultra Petroleum Corp.a	8,777		387,241
Union Pacific Corp.	11,790		678,161
United Parcel Service Inc. Class B	11,790		633,477
United States Steel Corp.	6,157		244,741
United Technologies Corp.	14,279		777,777
UnitedHealth Group Inc.	28,689		805,013
Valero Energy Corp.	13,362		240,516
Varian Medical Systems Inc.a	12,445		438,935
VeriSign Inc.a	18,602		380,225
Verizon Communications Inc.	57,116		1,831,710
Viacom Inc. Class Ba	16,375		379,245
Visa Inc. Class A	8,751		572,840
Vornado Realty Trust	7,654		390,507
Walgreen Co.	22,663		703,686
Wal-Mart Stores Inc.	46,636		2,326,204
Walt Disney Co. (The)	36,025		904,948
Waste Management Inc.	20,043		563,409
Weatherford International Ltd.a	19,912		373,549
WellPoint Inc.a	12,625		664,580

Security	Shares	Value
Wells Fargo & Co.	98,147	$	2,400,676
Western Union Co.	31,571		551,861
Weyerhaeuser Co.	10,218		358,039
Whirlpool Corp.b	7,336		418,812
Williams Companies Inc. (The)	19,650		327,959
Wyeth	30,654		1,426,944
Xerox Corp.	45,719		374,439
XTO Energy Inc.	12,052		484,852
Yahoo! Inc.a	32,226		461,476
Yum! Brands Inc.	18,995		673,563
Zimmer Holdings Inc.a	8,515		396,799
			206,225,185
TOTAL COMMON STOCKS
(Cost: $490,129,718)			485,414,298
PREFERRED STOCKS – 1.26%
BRAZIL – 1.11%
Banco Bradesco SA SP ADR	40,872		644,551
Companhia Brasileira de Distribuicao Grupo Pao de Acucar Class A SP ADR	14,300		669,240
Companhia de Bebidas das Americas SP ADR	13,231		930,536
Companhia Energetica de Minas Gerais SP ADR	53,861		769,135
Gerdau SA SP ADR	40,479		472,390
Petroleo Brasileiro SA SP ADR	41,828		1,409,604
Vale SA SP ADR	33,444		575,237
			5,470,693
GERMANY – 0.07%
Volkswagen AG	4,716		367,669
			367,669
ITALY – 0.08%
Telecom Italia SpA RNC	344,137		385,685
			385,685
TOTAL PREFERRED STOCKS
(Cost: $5,606,147)			6,224,047
RIGHTS – 0.01%
BELGIUM – 0.00%
Fortisa,f	7,392		1
			1

56 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI ACWI INDEX FUND

July 31, 2009

Security	Shares	Value
SOUTH KOREA – 0.01%
KB Financial Group Inc.a	1,893	$	25,556
			25,556
TOTAL RIGHTS (Cost: $0)			25,557
WARRANTS – 0.00%
ITALY – 0.00%
Unione di Banche Italiane ScpA (Expires 6/30/11)a	23,535		1,712
			1,712
TOTAL WARRANTS (Cost: $0)			1,712
SHORT-TERM INVESTMENTS – 1.18%
MONEY MARKET FUNDS – 1.18%
Barclays Global Investors Funds Institutional Money Market Fund, SL Agency Shares 0.33%e,g,h	4,730,787		4,730,787
Barclays Global Investors Funds Prime Money Market Fund, SL Agency Shares 0.26%e,g,h	655,074		655,074
Barclays Global Investors Funds Treasury Money Market Fund, SL Agency Shares 0.12%e,g	441,319		441,319
			5,827,180
TOTAL SHORT-TERM INVESTMENTS
(Cost: $5,827,180)			5,827,180
TOTAL INVESTMENTS IN SECURITIES – 100.95%
(Cost: $501,563,045)			497,492,794
Other Assets, Less Liabilities – (0.95)%			(4,673,029	)
NET ASSETS – 100.00%		$	492,819,765

NVDR – Non-Voting Depositary Receipts

NVS – Non-Voting Shares

SP ADR – Sponsored American Depositary Receipts

SP GDR – Sponsored Global Depositary Receipts

^a Non-income earning security.

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

^c This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933.

^d This security may be resold to qualified institutional buyers under Rule 144A of the Securities Act of 1933.

^e Affiliated issuer. See Note 2.

^f Security valued using Level 3 inputs. See Note 1.

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

^h All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 57

Schedule of Investments

iSHARES^® MSCI ACWI EX US INDEX FUND

July 31, 2009

Security	Shares	Value
COMMON STOCKS – 97.75%
AUSTRALIA – 5.96%
AMP Ltd.	52,466	$	245,131
ASX Ltd.	6,882		215,008
Australia and New Zealand Banking Group Ltd.	49,950		769,476
AXA Asia Pacific Holdings Ltd.	37,259		131,645
BHP Billiton Ltd.	90,058		2,833,819
BlueScope Steel Ltd.	64,080		179,530
Boral Ltd.	35,520		147,352
Brambles Ltd.	41,699		207,652
Commonwealth Bank of Australia	34,595		1,230,952
Computershare Ltd.	26,788		218,916
Crown Ltd.	18,093		112,812
CSL Ltd.	17,057		433,209
Fortescue Metals Group Ltd.a	32,153		112,802
Foster’s Group Ltd.	37,851		169,609
Insurance Australia Group Ltd.	79,365		242,147
Macquarie Group Ltd.	9,583		350,700
National Australia Bank Ltd.	41,773		844,932
Newcrest Mining Ltd.	10,915		272,226
OneSteel Ltd.	66,045		164,170
Orica Ltd.	15,654		292,293
Origin Energy Ltd.	62,123		748,866
Qantas Airways Ltd.	76,294		147,151
QBE Insurance Group Ltd.	33,929		550,034
Rio Tinto Ltd.	9,422		473,112
Santos Ltd.	54,945		663,252
Sonic Healthcare Ltd.	15,322		149,034
Suncorp-Metway Ltd.	54,253		320,233
Tabcorp Holdings Ltd.	15,170		91,308
Telstra Corp. Ltd.	65,342		191,757
Wesfarmers Ltd.	26,852		577,060
Wesfarmers Ltd. Partially Protected	5,772		123,995
Westfield Group	33,522		315,750
Westpac Banking Corp.	48,581		876,012
Woodside Petroleum Ltd.	24,161		917,942
Woolworths Ltd.	35,779		810,548
			16,130,435
AUSTRIA – 0.21%
OMV AG	4,737		187,037
Raiffeisen International Bank Holding AG	1,332		59,127

Security	Shares	Value
Vienna Insurance Group	2,331	$	107,075
voestalpine AG	7,437		205,288
			558,527
BELGIUM – 0.61%
Anheuser-Busch InBev NV	8,087		320,055
Delhaize Group	2,205		156,838
Fortisa	91,131		352,719
Groupe Bruxelles Lambert SA	4,699		370,941
KBC Groep NVa	6,623		140,471
Solvay SA	1,814		176,863
UCB SA	4,033		132,653
			1,650,540
BRAZIL – 1.16%
BRF - Brasil Foods SA SP ADRa	1,887		83,254
Centrais Eletricas Brasileiras SA SP ADR	3,774		57,704
Companhia de Saneamento Basico do Estado de Sao Paulo SP ADR	1,887		63,611
CPFL Energia SA SP ADR	1,258		66,158
Empresa Brasileira de Aeronautica SA SP ADR	10,961		213,630
Itau Unibanco Holding SA SP ADR	81,882		1,464,869
Petroleo Brasileiro SA SP ADR	1,887		77,820
TIM Participacoes SA SP ADR	8,478		186,686
Vale SA SP ADR	38,332		756,290
Vivo Participacoes SA SP ADR	7,351		167,382
			3,137,404
CANADA – 6.74%
Addax Petroleum Corp.	4,551		215,742
Agnico-Eagle Mines Ltd.	2,564		149,865
Agrium Inc.	3,478		159,278
ARC Energy Trust	13,986		226,524
Bank of Montreal	10,064		502,874
Bank of Nova Scotia	23,310		990,098
Barrick Gold Corp.	19,462		677,237
BCE Inc.	710		16,241
Bombardier Inc. Class B	40,552		143,288
Cameco Corp.	8,954		245,156
Canadian Imperial Bank of Commerce	7,400		453,884
Canadian National Railway Co.	8,621		417,773
Canadian Natural Resources Ltd.	13,283		795,678

58 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI ACWI EX US INDEX FUND

July 31, 2009

Security	Shares	Value
Canadian Oil Sands Trust	9,546	$	239,467
Canadian Pacific Railway Ltd.	2,960		131,148
Enbridge Inc.	9,472		365,265
EnCana Corp.	4,224		225,754
Enerplus Resources Fund	8,362		181,688
Fairfax Financial Holdings Ltd.	260		78,883
Finning International Inc.	7,104		109,343
First Quantum Minerals Ltd.	2,368		157,158
Goldcorp Inc.	14,911		564,524
Great-West Lifeco Inc.	10,504		251,645
Husky Energy Inc.	9,620		282,078
IAMGOLD Corp.	4,218		44,556
Imperial Oil Ltd.	9,472		378,056
Kinross Gold Corp.	12,395		243,635
Magna International Inc. Class A	2,553		128,701
Manulife Financial Corp.	46,509		1,125,405
Nexen Inc.	12,913		266,717
Niko Resources Ltd.	2,072		145,467
Penn West Energy Trust	15,762		204,843
Petro-Canada	14,504		596,876
Potash Corp. of Saskatchewan Inc.	7,881		731,604
Power Corp. of Canada	10,064		281,505
Power Financial Corp.	8,214		237,432
Provident Energy Trust	33,892		168,347
Research In Motion Ltd.a	10,952		828,871
Ritchie Bros. Auctioneers Inc.	6,438		153,640
Rogers Communications Inc. Class B	9,250		256,084
Royal Bank of Canada	29,156		1,382,962
Shoppers Drug Mart Corp.	3,737		155,584
SNC-Lavalin Group Inc.	4,255		178,922
Sun Life Financial Inc.	18,870		642,673
Suncor Energy Inc.	24,124		777,431
Talisman Energy Inc.	33,448		515,132
TELUS Corp. NVS	4,329		119,127
Toronto-Dominion Bank (The)	8,658		505,417
TransCanada Corp.	16,280		461,400
Yamana Gold Inc.	12,908		122,621
			18,233,599
CHILE – 0.19%
Banco Santander Chile SA SP ADR	740		36,341
Empresa Nacional de Electricidad SA SP ADR	703		34,658
Enersis SA SP ADR	19,240		369,216

Security	Shares	Value
LAN Airlines SA SP ADR	2,812	$	34,391
Sociedad Quimica y Minera de Chile SA Series B SP ADR	851		30,457
			505,063
CHINA – 3.62%
Air China Ltd. Class Ha	222,000		143,225
Angang New Steel Co. Ltd. Class Hb	74,000		167,859
Bank of China Ltd. Class H	814,000		405,422
Bank of Communications Co. Ltd. Class H	185,000		227,728
China Construction Bank Class H	777,000		626,609
China High Speed Transmission Equipment Group Co. Ltd.	111,000		278,143
China Life Insurance Co. Ltd. Class H	222,000		983,955
China Merchants Holdings (International) Co. Ltd.	74,000		244,437
China Mobile Ltd.b	148,000		1,554,467
China Resources Enterprise Ltd.	148,000		370,093
China Shenhua Energy Co. Ltd. Class H	148,000		604,409
China Shipping Development Co. Ltd. Class Hb	148,000		224,195
CNOOC Ltd.	629,000		845,695
Dongfeng Motor Group Co. Ltd. Class H	74,000		78,869
Fosun International Ltd.	240,500		192,709
GOME Electrical Appliances Holdings Ltd.	264,320		76,396
Industrial and Commercial Bank of China Ltd. Class H	1,184,000		852,474
Jiangxi Copper Co. Ltd. Class Hb	111,000		256,086
Lenovo Group Ltd.	518,000		245,965
Maanshan Iron & Steel Co. Ltd. Class Ha	296,000		230,306
Ping An Insurance (Group) Co. of China Ltd. Class H	55,500		492,694
Sinofert Holdings Ltd.	222,000		121,455
Sinopec Shanghai Petrochemical Co. Ltd. Class Ha	444,000		203,952
Yanzhou Coal Mining Co. Ltd. Class H	148,000		229,924
Zijin Mining Group Co. Ltd. Class H	148,000		138,069
			9,795,136

SCHEDULES OF INVESTMENTS 59

Schedule of Investments (Continued)

iSHARES^® MSCI ACWI EX US INDEX FUND

July 31, 2009

Security	Shares	Value
COLOMBIA – 0.03%
Bancolombia SA SP ADR	2,460	$	78,991
			78,991
CZECH REPUBLIC – 0.58%
CEZ AS	21,201		1,134,431
Komercni Banka AS	2,479		425,268
			1,559,699
DENMARK – 1.01%
Coloplast A/S Class B	2,220		161,897
Danske Bank A/Sa	13,394		277,349
Novo Nordisk A/S Class B	17,390		1,018,198
Novozymes A/S Class B	2,923		261,308
Topdanmark A/Sa	1,110		150,907
Trygvesta A/S	3,515		235,589
Vestas Wind Systems A/Sa	6,586		461,485
William Demant Holding A/Sa	2,738		162,137
			2,728,870
EGYPT – 0.17%
Orascom Construction Industries Co. SP GDR	3,295		131,174
Orascom Telecom Holding SAE SP GDRa,c	9,250		320,050
			451,224
FINLAND – 0.80%
Fortum OYJ	7,067		162,813
Kone OYJ Class B	4,662		157,770
Neste Oil OYJ	9,250		130,093
Nokia OYJ	96,052		1,271,900
Nokian Renkaat OYJ	5,513		115,834
Rautaruukki OYJ	4,477		96,352
Sampo OYJ Class A	11,396		236,695
			2,171,457
FRANCE – 7.10%
Aeroports de Paris	1,517		121,796
ALSTOM	1,554		106,127
ArcelorMittal	20,239		724,520
AXA	43,253		909,404
BNP Paribas	19,610		1,422,076
Bouygues SA	4,699		199,094
Cap Gemini SA	3,441		158,038
Carrefour SA	15,059		703,159

Security	Shares	Value
Casino Guichard-Perrachon SA	1,591	$	109,060
CNP Assurances SA	1,850		168,150
Compagnie de Saint-Gobain	12,776		515,320
Compagnie Generale de Geophysique-Veritasa	3,515		70,864
Compagnie Generale des Etablissements Michelin Class B	5,180		372,044
Credit Agricole SA	21,941		311,535
Danone SA	9,688		517,060
Electricite de France	2,664		131,341
Essilor International SA	5,846		322,410
France Telecom SA	44,252		1,098,547
GDF Suez	28,564		1,085,512
L’Air Liquide SA	8,917		926,158
Legrand SA	9,546		232,308
L’Oreal SA	6,845		590,130
LVMH Moet Hennessy Louis Vuitton SA	2,886		258,959
Neopost SA	1,776		150,446
Pernod Ricard SA	2,172		167,886
PPR SA	2,294		254,299
Publicis Groupe SA	5,106		180,541
Renault SAa	6,401		271,525
Sanofi-Aventis	27,824		1,813,006
SCOR SE	9,139		218,258
Societe Generale	11,285		720,769
Sodexo	3,367		176,335
STMicroelectronics NV	34,373		261,156
Suez Environnement SA	3,959		75,044
Technip SA	2,775		166,891
Total SA	34,151		1,883,928
Unibail-Rodamco SE	666		115,762
Vallourec SA	1,850		242,088
Veolia Environnement	9,028		308,851
Vinci SA	10,804		546,983
Vivendi SA	23,421		598,522
			19,205,902
GERMANY – 6.17%
Allianz SE Registered	11,692		1,147,082
BASF SE	38,332		1,910,777
Celesio AG	4,699		124,513
Commerzbank AGa	21,978		171,376

60 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI ACWI EX US INDEX FUND

July 31, 2009

Security	Shares	Value
Daimler AG Registered	19,425	$	894,217
Deutsche Bank AG Registered	16,724		1,076,217
Deutsche Boerse AG	5,513		434,573
Deutsche Postbank AGa	2,146		58,964
Deutsche Telekom AG Registered	79,254		1,010,138
E.ON AG	44,622		1,680,261
Fresenius Medical Care AG & Co. KGaA	6,475		295,777
GEA Group AG	12,802		208,544
Hochtief AG	3,108		185,596
K+S AG	5,032		280,942
Linde AG	5,698		534,948
Merck KGaA	2,183		202,100
METRO AG	6,105		351,667
Muenchener Rueckversicherungs- Gesellschaft AG Registered	6,105		918,247
RWE AG	9,694		814,312
Salzgitter AG	1,961		197,812
SAP AG	26,159		1,223,868
Siemens AG Registered	21,275		1,689,107
ThyssenKrupp AG	14,245		436,230
Volkswagen AG	2,035		727,801
Wacker Chemie AG	999		132,625
			16,707,694
HONG KONG – 2.44%
Bank of East Asia Ltd.	48,600		161,790
Belle International Holdings Ltd.	148,000		149,909
BOC Hong Kong (Holdings) Ltd.	148,000		315,477
Cathay Pacific Airways Ltd.	111,000		172,729
Cheung Kong (Holdings) Ltd.	37,000		477,894
Cheung Kong Infrastructure Holdings Ltd.	37,000		134,870
CLP Holdings Ltd.	37,000		251,598
Esprit Holdings Ltd.	37,000		267,353
Hang Seng Bank Ltd.	22,200		360,640
Henderson Land Development Co. Ltd.	37,000		244,437
Hong Kong Aircraft Engineering Co. Ltd.	14,800		202,233
Hong Kong and China Gas Co. Ltd. (The)	111,300		249,023

Security	Shares	Value
Hong Kong Exchanges and Clearing Ltd.	18,500	$	348,991
Hongkong Electric Holdings Ltd.	55,500		306,143
Hutchison Whampoa Ltd.	37,000		277,140
Kingboard Chemical Holdings Co. Ltd.b	37,000		117,444
Li & Fung Ltd.	74,000		218,179
MTR Corp. Ltd.	55,500		201,231
New World Development Co. Ltd.	74,000		176,644
Noble Group Ltd.	149,600		216,819
Orient Overseas International Ltd.	37,000		207,199
Shangri-La Asia Ltd.	74,000		118,017
Sun Hung Kai Properties Ltd.	37,000		562,874
Swire Pacific Ltd. Class A	18,500		207,795
Tencent Holdings Ltd.	37,000		499,377
Wharf (Holdings) Ltd. (The)	37,000		174,018
			6,619,824
HUNGARY – 0.18%
MOL Hungarian Oil and Gas Nyrta	3,626		265,255
OTP Bank Nyrta	4,329		92,036
Richter Gedeon Nyrt	740		145,366
			502,657
INDIA – 1.81%
HDFC Bank Ltd. SP ADRb	13,912		1,360,176
ICICI Bank Ltd. SP ADR	33,078		1,036,995
Infosys Technologies Ltd. SP ADR	29,174		1,255,357
Reliance Industries Ltd. SP GDRa,d	333		26,973
Wipro Ltd. SP ADR	84,878		1,232,429
			4,911,930
INDONESIA – 0.56%
PT Bank Central Asia Tbk	555,000		211,096
PT Bank Mandiri Tbk	536,500		225,681
PT Bank Rakyat Indonesia Tbk	240,500		176,892
PT Bumi Resources Tbk	267,000		75,325
PT Indosat Tbk	127,422		69,970
PT Perusahaan Gas Negara Tbk	647,500		228,337
PT Semen Gresik (Persero) Tbk	166,500		99,816
PT Telekomunikasi Indonesia Tbk	388,500		350,335
PT United Tractors Tbk	55,500		72,416
			1,509,868

SCHEDULES OF INVESTMENTS 61

Schedule of Investments (Continued)

iSHARES^® MSCI ACWI EX US INDEX FUND

July 31, 2009

Security	Shares	Value
IRELAND – 0.30%
Anglo Irish Bank Corp. Ltd.e	64,486	$	9
CRH PLC	29,375		697,577
Elan Corp. PLCa	14,541		117,508
			815,094
ITALY – 2.41%
Alleanza Assicurazioni SpA	17,686		132,267
Assicurazioni Generali SpA	35,286		799,927
Banco Popolare SpAa	12,950		104,100
Enel SpA	85,088		459,915
Eni SpA	96,496		2,234,062
Exor SpA	9,960		166,908
Fiat SpAa	23,717		261,601
Fondiaria-Sai SpA	4,477		74,580
Intesa Sanpaolo SpAa	170,555		631,714
Luxottica Group SpAa	4,404		109,641
Mediobanca SpA	23,828		332,754
Mediolanum SpA	29,082		165,233
Saipem SpA	5,365		144,518
Telecom Italia SpA	238,502		371,274
UniCredit SpAa	144,430		420,793
Unione di Banche Italiane ScpA	7,511		104,517
			6,513,804
JAPAN – 16.61%
Advantest Corp.	7,400		160,523
AEON Co. Ltd.	14,800		143,033
AEON Credit Service Co. Ltd.	3,700		41,899
Aisin Seiki Co. Ltd.	7,400		189,285
All Nippon Airways Co. Ltd.	37,000		102,610
Amada Co. Ltd.	37,000		233,983
Asahi Breweries Ltd.	14,800		233,983
Asahi Glass Co. Ltd.	37,000		319,492
Asahi Kasei Corp.	37,000		190,062
Astellas Pharma Inc.	14,800		561,248
Bridgestone Corp.	18,500		319,492
Canon Inc.	14,800		548,810
Canon Marketing Japan Inc.	11,100		175,837
Casio Computer Co. Ltd.	22,200		181,201
Chubu Electric Power Co. Inc.	7,400		177,236
Chugai Pharmaceutical Co. Ltd.	14,800		269,741
Citizen Watch Co. Ltd.	18,500		99,890
Coca-Cola West Co. Ltd.	11,100		216,065

Security	Shares	Value
Cosmo Oil Co. Ltd.	74,000	$	219,991
Credit Saison Co. Ltd.	7,400		96,081
Daido Steel Co. Ltd.	37,000		152,361
Daiichi Sankyo Co. Ltd.	18,500		334,261
Daikin Industries Ltd.	7,400		267,409
Dainippon Pharmaceutical Co. Ltd.	37,000		342,035
Daiwa Securities Group Inc.	37,000		217,658
Denso Corp.	18,500		543,175
Eisai Co. Ltd.	7,400		261,967
Fanuc Ltd.	7,400		604,002
FUJIFILM Holdings Corp.	18,500		600,504
Fujitsu Ltd.	111,000		725,269
Gunma Bank Ltd.	74,000		427,543
Hachijuni Bank Ltd. (The)	74,000		430,653
Hino Motors Ltd.	37,000		122,822
Hitachi Construction Machinery Co. Ltd.	7,400		130,517
Hitachi High-Technologies Corp.	11,100		216,181
Hitachi Ltd.	37,000		123,599
Honda Motor Co. Ltd.	29,600		948,369
Hoya Pentax HD Corp.	14,800		355,250
IBIDEN Co. Ltd.	3,700		122,433
Idemitsu Kosan Co. Ltd.	3,700		307,443
IHI Corp.a	111,000		186,564
ITO EN Ltd.	14,800		231,495
ITOCHU Corp.	74,000		550,365
Japan Airlines Corp.a,b	74,000		125,154
Japan Petroleum Exploration Co. Ltd.	3,700		181,512
Japan Prime Realty Investment Corp.	185		395,866
Japan Retail Fund Investment Corp.	37		184,621
Japan Tobacco Inc.	37		106,497
JFE Holdings Inc.	11,100		444,257
JSR Corp.	7,400		132,616
JTEKT Corp.	11,100		124,882
Kansai Electric Power Co. Inc. (The)	11,100		246,615
Kawasaki Heavy Industries Ltd.	74,000		189,674
Kawasaki Kisen Kaisha Ltd.	37,000		138,757
Keio Corp.	74,000		441,536
Kobe Steel Ltd.	111,000		213,383
Komatsu Ltd.	7,600		123,666
Konica Minolta Holdings Inc.	18,500		201,140

62 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI ACWI EX US INDEX FUND

July 31, 2009

Security	Shares	Value
Kubota Corp.	37,000	$	331,152
Kuraray Co. Ltd.	18,500		208,525
Kurita Water Industries Ltd.	7,400		244,089
Kyocera Corp.	7,400		592,342
Leopalace21 Corp.	40,700		346,738
Mabuchi Motor Co. Ltd.	3,700		184,621
Marubeni Corp.	74,000		339,703
Meiji Holdings Co. Ltd.a	4,295		172,350
Minebea Co. Ltd.	37,000		149,640
Mitsubishi Chemical Holdings Corp.	37,000		165,187
Mitsubishi Corp.	33,300		661,138
Mitsubishi Electric Corp.	37,000		269,741
Mitsubishi Estate Co. Ltd.	37,000		612,942
Mitsubishi Gas Chemical Co. Inc.	37,000		226,598
Mitsubishi Heavy Industries Ltd.	74,000		294,616
Mitsubishi Motors Corp.a	37,000		68,018
Mitsubishi UFJ Financial Group Inc.	214,600		1,275,945
Mitsui Chemicals Inc.	37,000		134,871
Mitsui O.S.K. Lines Ltd.	37,000		224,266
Mitsumi Electric Co. Ltd.	7,400		181,512
Mizuho Financial Group Inc.	207,600		468,869
Murata Manufacturing Co. Ltd.	7,400		360,691
NEC Corp.a	111,000		387,121
Nidec Corp.	3,700		266,243
Nintendo Co. Ltd.	3,700		994,622
Nippon Mining Holdings Inc.	37,000		174,904
Nippon Steel Corp.	111,000		441,924
Nippon Telegraph and Telephone Corp.	11,100		455,917
Nishi-Nippon City Bank Ltd. (The)	74,000		186,564
Nisshin Seifun Group Inc.	37,000		447,366
Nisshin Steel Co. Ltd.	74,000		140,701
Nitto Denko Corp.	3,700		118,546
Nomura Holdings Inc.	48,100		418,876
NSK Ltd.	37,000		199,391
NTN Corp.	37,000		148,863
NTT DoCoMo Inc.	259		373,284
Omron Corp.	11,100		178,869
Ono Pharmaceutical Co. Ltd.	3,700		163,633
ORIX Corp.	2,960		186,254
Panasonic Corp.	37,000		583,014
Panasonic Electric Works Co. Ltd.	37,000		390,231

Security	Shares	Value
Ricoh Co. Ltd.	37,000	$	482,735
Rohm Co. Ltd.	3,700		273,628
Santen Pharmaceutical Co. Ltd.	11,100		344,561
SANYO Electric Co. Ltd.a	148,000		329,597
Secom Co. Ltd.	3,700		157,414
Seiko Epson Corp.	7,400		113,182
Seven & I Holdings Co. Ltd.	18,500		431,430
77 Bank Ltd. (The)	74,000		435,317
Sharp Corp.	37,000		409,276
Shin-Etsu Chemical Co. Ltd.	11,100		594,674
Showa Shell Sekiyu K.K.	29,600		329,286
SMC Corp.	3,700		415,106
SoftBank Corp.	18,500		391,591
Sony Corp.	22,200		623,825
Stanley Electric Co. Ltd.	7,400		152,672
Sumitomo Chemical Co. Ltd.	37,000		182,289
Sumitomo Corp.	40,700		400,608
Sumitomo Heavy Industries Ltd.	37,000		177,625
Sumitomo Metal Industries Ltd.	74,000		183,455
Sumitomo Mitsui Financial Group Inc.	18,500		787,069
Taiyo Nippon Sanso Corp.	37,000		353,695
Takeda Pharmaceutical Co. Ltd.	22,200		893,177
TDK Corp.	3,700		193,561
Terumo Corp.	3,700		186,953
THK Co. Ltd.	11,100		181,201
Tokio Marine Holdings Inc.	11,100		320,658
Tokyo Electric Power Co. Inc. (The)	18,500		471,269
Tokyo Electron Ltd.	7,400		385,567
Tokyo Tatemono Co. Ltd.	74,000		360,691
TonenGeneral Sekiyu K.K.	37,000		351,363
Toray Industries Inc.	37,000		184,232
Toshiba Corp.	74,000		326,488
Toyo Seikan Kaisha Ltd.	14,800		315,605
Toyota Industries Corp.	7,400		199,002
Toyota Motor Corp.	59,200		2,481,307
Toyota Tsusho Corp.	7,400		113,027
Ube Industries Ltd.	74,000		212,994
Ushio Inc.	7,400		138,757
USS Co. Ltd.	1,850		115,048
Yahoo! Japan Corp.	370		120,684
Yokogawa Electric Corp.	18,500		144,199
			44,967,208

SCHEDULES OF INVESTMENTS 63

Schedule of Investments (Continued)

iSHARES^® MSCI ACWI EX US INDEX FUND

July 31, 2009

Security	Shares	Value
MEXICO – 1.23%
America Movil SAB de CV Series L	518,000	$	1,109,377
Cemex SAB de CV CPOa	236,899		222,763
Fomento Economico Mexicano SAB de CV BD Units	96,200		371,227
Grupo Financiero Banorte SAB de CV Series O	51,800		127,631
Grupo Mexico SAB de CV Series B	97,125		137,325
Grupo Modelo SAB de CV Series Ca	51,800		203,262
Kimberly-Clark de Mexico SAB de CV Series A	48,100		200,023
Telmex Internacional SAB de CV Series L	370,000		234,281
Wal-Mart de Mexico SAB de CV Series V	210,900		717,160
			3,323,049
NETHERLANDS – 1.50%
Aegon NV	46,435		339,568
Akzo Nobel NV	11,100		605,797
ASML Holding NV	15,170		395,089
Heineken NV	4,440		176,318
ING Groep NV CVA	56,166		716,505
Koninklijke Ahold NV	31,450		355,770
Koninklijke DSM NV	7,400		263,123
Koninklijke KPN NV	39,183		585,793
Koninklijke Philips Electronics NV	22,755		516,174
TNT NV	5,081		120,048
			4,074,185
NORWAY – 0.27%
Renewable Energy Corp. ASAa	5,177		40,931
StatoilHydro ASA	22,015		468,488
Telenor ASAa	10,841		99,571
Yara International ASA	3,885		119,909
			728,899
PHILIPPINE ISLANDS – 0.25%
Bank of the Philippine Islands	355,200		336,140
Metropolitan Bank & Trust Co.	270,100		219,091
Philippine Long Distance Telephone Co.	2,590		137,095
			692,326

Security	Shares	Value
PORTUGAL – 0.23%
Banco Comercial Portugues SA Registered	443,519	$	472,228
CIMPOR – Cimentos de Portugal SGPS SA	19,573		148,183
			620,411
RUSSIA – 1.32%
JSC MMC Norilsk Nickel SP ADRa	2,088		20,901
LUKOIL SP ADR	19,351		967,550
OAO Gazprom SP ADR	51,433		1,062,091
OAO NovaTek SP GDRc	6,845		295,088
OAO Tatneft SP ADRc	1,887		46,986
OAO TMK SP GDRc	13,135		139,231
OJSC Rosneft Oil Co. SP GDRa	7,326		44,762
Polyus Gold SP ADRa	7,326		157,509
Sistema JSFC SP GDRa,c	18,648		279,347
Surgutneftegaz SP ADR	65,120		506,634
Uralkali SP GDRc	2,331		42,890
			3,562,989
SINGAPORE – 1.53%
CapitaLand Ltd.	59,500		157,616
COSCO Corp. (Singapore) Ltd.	74,000		67,224
DBS Group Holdings Ltd.	37,500		360,944
Keppel Corp. Ltd.	37,000		215,270
Neptune Orient Lines Ltd.b	194,250		223,609
Oversea-Chinese Banking Corp. Ltd.	111,000		601,935
SembCorp Marine Ltd.	111,000		240,158
Singapore Airlines Ltd.	74,000		692,764
Singapore Exchange Ltd.	37,000		223,737
Singapore Telecommunications Ltd.	370,000		898,027
United Overseas Bank Ltd.	37,000		453,632
			4,134,916
SOUTH AFRICA – 1.27%
African Bank Investments Ltd.	80,734		308,666
Anglo Platinum Ltd.	2,442		172,740
AngloGold Ashanti Ltd.	8,806		332,518
ArcelorMittal South Africa Ltd.	21,612		275,702
Aspen Pharmacare Holdings Ltd.a	15,651		118,797
FirstRand Ltd.	120,768		233,713
Gold Fields Ltd.	23,014		271,421
Growthpoint Properties Ltd.	115,995		201,688
Harmony Gold Mining Co. Ltd.a	18,907		169,319

64 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI ACWI EX US INDEX FUND

July 31, 2009

Security	Shares	Value
Impala Platinum Holdings Ltd.	13,690	$	328,309
Kumba Iron Ore Ltd.	8,769		231,561
Sasol Ltd.	22,607		801,738
			3,446,172
SOUTH KOREA – 2.54%
KB Financial Group Inc. SP ADRa	22,956		985,042
Korea Electric Power Corp. SP ADRa	29,822		398,720
KT Corp. SP ADR	21,127		339,300
LG Display Co. Ltd. SP ADR	9,509		137,405
POSCO SP ADR	8,288		837,668
Samsung Electronics Co. Ltd. SP GDRc	9,509		2,814,664
Shinhan Financial Group Co. Ltd. SP ADR	16,292		1,096,126
SKTelecom Co. Ltd. SP ADR	15,947		268,388
			6,877,313
SPAIN – 3.99%
Abertis Infraestructuras SA	6,742		138,885
Acciona SA	1,628		195,611
Acerinox SA	16,539		326,398
Actividades de Construcciones y Servicios SA	6,663		353,203
Banco Bilbao Vizcaya Argentaria SA	86,244		1,408,578
Banco Popular Espanol SAb	30,154		270,827
Banco Santander SA	169,038		2,434,881
Fomento de Construcciones y Contratas SA	3,515		140,283
Gamesa Corporacion Tecnologica SA	16,576		356,739
Gas Natural SDG SA	3,996		74,386
Grupo Ferrovial SAb	3,626		123,892
Iberdrola SA	80,623		688,106
Indra Sistemas SA	7,326		167,481
Industria de Diseno Textil SA	8,177		437,518
Repsol YPF SA	40,996		946,809
Telefonica SA	97,162		2,404,451
Zardoya Otis SAb	14,430		326,103
Zardoya Otis SA Newe	721		16,294
			10,810,445
SWEDEN – 1.97%
Alfa Laval AB	20,720		223,545
Assa Abloy AB Class B	11,470		187,354
Electrolux AB Class Ba	12,099		224,200

Security	Shares	Value
Getinge AB Class B	10,080	$	149,430
Hennes & Mauritz AB Class B	13,505		795,251
Husqvarna AB Class Ba	28,083		175,391
Investor AB Class B	36,075		636,300
Millicom International Cellular SA SDRa	1,702		126,856
Nordea Bank AB	82,182		789,637
Sandvik AB	49,839		470,321
Scania AB Class B	31,487		365,208
Securitas AB Class B	15,060		140,568
Skandinaviska Enskilda Banken AB Class Aa	9,990		55,262
Skanska AB Class B	16,539		229,857
SSAB AB Class A	5,809		75,350
SSAB AB Class B	3,293		38,986
Svenska Handelsbanken AB Class A	6,919		167,626
Tele2 AB Class B	9,287		123,779
TeliaSonera AB	56,240		357,420
			5,332,341
SWITZERLAND – 5.14%
ABB Ltd. Registereda	61,161		1,109,280
Compagnie Financiere Richemont SA Class A Bearer Units	6,741		164,477
Credit Suisse Group AG Registered	21,608		1,013,895
Kuehne & Nagel International AG Registered	3,145		260,074
Logitech International SA Registereda	6,142		102,723
Nestle SA Registered	85,100		3,477,536
Nobel Biocare Holding AG Registered	4,440		104,704
Novartis AG Registered	54,649		2,485,038
Roche Holding AG Genusschein	16,132		2,525,660
Swiss Life Holding AG Registereda	666		66,275
Swiss Reinsurance Co. Registered	6,919		263,581
Syngenta AG Registered	2,183		500,188
Synthes Inc.	1,147		127,995
UBS AG Registereda	80,549		1,168,288
Zurich Financial Services AG Registered	2,738		534,244
			13,903,958
TAIWAN – 1.95%
AU Optronics Corp. SP ADRa	47,408		528,125
Chunghwa Telecom Co. Ltd. SP ADR	109,157		1,905,881

SCHEDULES OF INVESTMENTS 65

Schedule of Investments (Continued)

iSHARES^® MSCI ACWI EX US INDEX FUND

July 31, 2009

Security	Shares	Value
Hon Hai Precision Industry Co. Ltd. SP GDRc	6,142	$	42,748
Siliconware Precision Industries Co. SP ADR	72,853		493,943
Taiwan Semiconductor Manufacturing Co. Ltd. SP ADR	154,319		1,615,720
United Microelectronics Corp. SP ADR	200,703		682,390
			5,268,807
THAILAND – 0.23%
Bangkok Bank PCL NVDR	51,282		167,273
Banpu PCL NVDR	3,700		40,773
Kasikornbank PCL NVDR	71,262		151,822
PTT Aromatics & Refining PCL NVDR	55,500		31,966
PTT Chemical PCL NVDR	22,200		39,142
PTT Exploration & Production PCL NVDR	11,100		45,013
PTT PCL NVDR	7,400		51,972
Ratchaburi Electricity Generating Holding PCL NVDR	29,600		33,488
Thai Oil PCL NVDR	25,900		28,541
TMB Bank PCL NVDRa	1,439,300		34,259
			624,249
TURKEY – 0.23%
Turkiye Petrol Rafinerileri AS	14,615		187,752
Turk Sise ve Cam Fabrikalari ASa,b	470,211		426,019
			613,771
UNITED KINGDOM – 15.44%
AMEC PLC	13,801		161,304
Anglo American PLC	32,116		1,027,600
AstraZeneca PLC	43,549		2,023,702
Aviva PLC	77,515		450,743
BAE Systems PLC	11,322		57,624
Banco Santander SA	5,000		70,997
Barclays PLCf	234,062		1,173,044
BG Group PLC	113,109		1,873,302
BHP Billiton PLC	50,172		1,300,067
BP PLC	480,112		3,957,482
British American Tobacco PLC	39,738		1,224,044
British Land Co. PLCb	16,072		115,906
BT Group PLC	209,790		440,489
Bunzl PLC	34,003		292,006
Cadbury PLC	28,675		280,955

Security	Shares	Value
Capita Group PLC	26,529	$	293,574
Carnival PLC	4,440		128,373
Carphone Warehouse Group PLC (The)	29,008		86,323
Centrica PLC	102,702		375,008
Compass Group PLC	54,242		290,008
Diageo PLC	70,559		1,097,237
Experian PLC	32,412		265,447
Friends Provident Group PLC	69,042		80,295
G4S PLC	43,697		154,666
GlaxoSmithKline PLC	158,767		3,024,304
Home Retail Group PLC	33,781		175,852
HSBC Holdings PLC	421,062		4,228,484
ICAP PLC	28,527		214,712
Imperial Tobacco Group PLC	27,788		788,229
InterContinental Hotels Group PLC	12,173		137,029
International Power PLC	33,300		140,914
Invensys PLC	42,513		181,839
J Sainsbury PLC	43,919		231,175
Johnson Matthey PLC	11,988		281,420
Kingfisher PLC	71,484		252,129
Land Securities Group PLC	15,211		134,662
Legal & General Group PLC	228,845		244,517
Lloyds Banking Group PLC	130,018		183,218
London Stock Exchange Group PLC	15,799		186,490
Man Group PLC	49,469		226,969
Marks & Spencer Group PLC	47,545		272,529
National Grid PLC	66,156		612,545
Next PLC	6,660		188,254
Old Mutual PLC	135,346		215,004
Prudential PLC	65,564		487,227
Reckitt Benckiser PLC	16,946		807,981
Rexam PLC	109,483		428,355
Rio Tinto PLC	34,362		1,417,910
Royal Bank of Scotland Group PLCa	365,301		271,588
Royal Dutch Shell PLC Class A	11,840		308,567
SABMiller PLC	17,908		411,783
Sage Group PLC (The)	43,401		140,595
Scottish & Southern Energy PLC	20,942		384,336
Serco Group PLC	22,829		152,713
Shire PLC	11,951		175,939
Smith & Nephew PLC	34,410		271,257
Standard Chartered PLC	37,914		893,180

66 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI ACWI EX US INDEX FUND

July 31, 2009

Security	Shares	Value
Standard Life PLC	53,428	$	175,203
Tesco PLC	212,454		1,294,397
Thomson Reuters PLC	3,922		124,515
3i Group PLC	88,038		399,548
Tullow Oil PLC	31,154		510,547
United Utilities Group PLC	10,212		76,312
Vodafone Group PLC	1,273,688		2,590,913
Wm Morrison Supermarkets PLC	47,175		210,773
Wolseley PLCa	9,683		214,949
WPP PLC	29,304		224,326
Xstrata PLC	50,214		672,805
			41,786,190
TOTAL COMMON STOCKS
(Cost: $244,945,094)			264,554,947
PREFERRED STOCKS – 1.84%
BRAZIL – 1.53%
Aracruz Celulose SA SP ADRa	2,257		45,050
Banco Bradesco SA SP ADR	51,985		819,803
Brasil Telecom Participacoes SA SP ADR	777		32,875
Centrais Eletricas Brasileiras SA SP ADR	3,774		51,968
Companhia de Bebidas das Americas SP ADR	3,737		262,823
Companhia Energetica de Minas Gerais SP ADR	4,392		62,718
Companhia Paranaense de Energia SP ADR	3,737		57,998
Gerdau SA SP ADR	3,700		43,179
Net Servicos de Comunicacao SA SP ADR	3,774		38,344
Petroleo Brasileiro SA SP ADR	53,783		1,812,487
Vale SA SP ADR	50,098		861,686
Votorantim Celulose e Papel SA SP ADRa	3,737		55,831
			4,144,762
GERMANY – 0.20%
Henkel AG & Co. KGaA	6,290		230,075
Porsche Automobil Holding SE	3,034		196,749
RWE AG NVS	1,665		117,508
			544,332

Security	Shares	Value
ITALY – 0.11%
Intesa Sanpaolo SpA RNC	30,213	$	84,812
Telecom Italia SpA RNC	191,401		214,509
			299,321
TOTAL PREFERRED STOCKS
(Cost: $4,092,949)			4,988,415
RIGHTS – 0.03%
BELGIUM – 0.00%
Fortisa,e	25,932		4
			4
SOUTH KOREA – 0.01%
KB Financial Group Inc.a	1,783		24,070
			24,070
UNITED KINGDOM – 0.02%
Rexam PLCa	39,812		56,762
			56,762
TOTAL RIGHTS
(Cost: $0)			80,836
WARRANTS – 0.00%
ITALY – 0.00%
Unione di Banche Italiane ScpA (Expires 6/30/11)a	7,511		547
			547
TOTAL WARRANTS
(Cost: $0)			547
SHORT-TERM INVESTMENTS – 1.23%
MONEY MARKET FUNDS – 1.23%
Barclays Global Investors Funds Institutional Money Market Fund, SL Agency Shares 0.33%f,g,h	2,824,519		2,824,519
Barclays Global Investors Funds Prime Money Market Fund, SL Agency Shares 0.26%f,g,h	391,112		391,112

SCHEDULES OF INVESTMENTS 67

Schedule of Investments (Continued)

iSHARES^® MSCI ACWI EX US INDEX FUND

July 31, 2009

Security	Shares	Value
Barclays Global Investors Funds Treasury Money Market Fund, SL Agency Shares 0.12%f,g	98,325	$	98,325
			3,313,956
TOTAL SHORT-TERM INVESTMENTS
(Cost: $3,313,956)			3,313,956
TOTAL INVESTMENTS IN SECURITIES – 100.85%
(Cost: $252,351,999)			272,938,701
Other Assets, Less Liabilities – (0.85)%			(2,295,908	)
NET ASSETS – 100.00%		$	270,642,793

NVDR – Non-Voting Depositary Receipts

NVS – Non-Voting Shares

SDR – Swedish Depositary Receipts

SP ADR – Sponsored American Depositary Receipts

SP GDR – Sponsored Global Depositary Receipts

^a Non-income earning security.

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

^c This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933.

^d This security may be resold to qualified institutional buyers under Rule 144A of the Securities Act of 1933.

^e Security valued using Level 3 inputs. See Note 1.

^f Affiliated issuer. See Note 2.

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

^h All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

68 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI ALL COUNTRY ASIA EX JAPAN INDEX FUND

July 31, 2009

Security	Shares	Value
COMMON STOCKS – 98.18%
CHINA – 26.60%
Agile Property Holdings Ltd.	2,090,000	$	2,955,645
Air China Ltd. Class Ha	2,090,000		1,348,378
Alibaba.com Ltd.a,b	418,000		958,967
Aluminum Corp. of China Ltd. Class H	2,508,000		2,918,970
Angang New Steel Co. Ltd. Class H	1,254,000		2,844,539
Anhui Conch Cement Co. Ltd. Class Hb	418,000		3,025,761
Bank of China Ltd. Class H	20,064,000		9,993,102
Bank of Communications Co. Ltd. Class H	3,135,000		3,859,059
Beijing Capital International Airport Co. Ltd. Class Ha	836,000		595,444
Beijing Enterprises Holdings Ltd.	418,000		2,100,774
BYD Co. Ltd. Class Ha,b	418,000		2,316,514
China Agri-Industries Holdings Ltd.	2,508,000		1,857,526
China BlueChemical Ltd. Class H	2,543,500		1,427,633
China CITIC Bank Class H	3,973,000		2,768,266
China Coal Energy Co. Class H	2,508,000		3,514,414
China Communications Construction Co. Ltd. Class H	935,000		1,213,683
China Construction Bank Class H	17,765,000		14,326,520
China COSCO Holdings Co. Ltd. Class H	2,194,500		3,171,386
China Dongxiang Group Co.b	1,463,000		1,111,873
China Everbright Ltd.	1,672,000		5,231,708
China High Speed Transmission Equipment Group Co. Ltd.b	429,000		1,074,984
China Life Insurance Co. Ltd. Class H	3,553,000		15,747,711
China Mengniu Dairy Co. Ltd.a,b	836,000		2,002,072
China Merchants Bank Co. Ltd. Class Hb	1,892,100		4,448,237
China Mobile Ltd.	2,821,500		29,634,660
China Oilfield Services Ltd. Class H	2,090,000		2,278,760
China Overseas Land & Investment Ltd.	2,573,760		6,349,674

Security	Shares	Value
China Petroleum & Chemical Corp. Class Hb	10,450,000	$	9,384,714
China Railway Construction Corp. Class H	1,776,500		2,833,213
China Railway Group Ltd. Class Ha	2,508,000		2,258,803
China Resources Enterprise Ltd.	836,000		2,090,526
China Resources Land Ltd.	1,254,000		3,064,594
China Resources Power Holdings Co. Ltd.	906,400		2,344,929
China Shenhua Energy Co. Ltd. Class H	1,776,500		7,254,950
China Shipping Container Lines Co. Ltd. Class Ha,b	7,106,000		2,778,199
China Shipping Development Co. Ltd. Class H	1,254,000		1,899,595
China Travel International Investment Hong Kong Ltd.b	5,852,000		1,457,327
China Unicom (Hong Kong) Ltd.	836,000		1,205,990
China Yurun Food Group Ltd.b	627,000		991,867
CNOOC Ltd.	8,987,000		12,083,088
Country Garden Holdings Co.b	2,508,000		1,177,943
Datang International Power Generation Co. Ltd. Class H	2,508,000		1,647,179
Denway Motors Ltd.	7,524,000		3,737,705
Dongfang Electric Corp. Ltd. Class H	418,000		2,046,839
Dongfeng Motor Group Co. Ltd. Class H	4,598,000		4,900,546
Fosun International Ltd.	3,030,500		2,428,295
GOME Electrical Appliances Holdings Ltd.	3,135,160		906,157
Guangdong Investment Ltd.	2,090,000		1,170,392
Guangshen Railway Co. Ltd. Class H	418,000		202,257
Guangzhou R&F Properties Co. Ltd. Class H	919,600		2,026,667
Harbin Power Equipment Co. Ltd. Class H	1,254,000		1,485,374
Hengan International Group Co. Ltd.	418,000		2,432,475

SCHEDULES OF INVESTMENTS 69

Schedule of Investments (Continued)

iSHARES^® MSCI ALL COUNTRY ASIA EX JAPAN INDEX FUND

July 31, 2009

Security	Shares	Value
Huaneng Power International Inc. Class Hb	836,000	$	659,087
Industrial and Commercial Bank of China Ltd. Class H	22,572,000		16,251,735
Jiangsu Expressway Co. Ltd. Class H	418,000		366,220
Jiangxi Copper Co. Ltd. Class Hb	1,672,000		3,857,441
Lenovo Group Ltd.	5,434,000		2,580,257
Li Ning Co. Ltd.	836,000		2,766,872
Maanshan Iron & Steel Co. Ltd. Class Ha,b	2,508,000		1,951,373
Parkson Retail Group Ltd.	940,500		1,570,322
PetroChina Co. Ltd. Class H	11,286,000		13,412,050
PICC Property and Casualty Co. Ltd. Class Ha	1,672,000		1,305,230
Ping An Insurance (Group) Co. of China Ltd. Class H	522,500		4,638,422
Shanghai Electric Group Co. Ltd. Class H	4,180,000		2,195,160
Shanghai Industrial Holdings Ltd.	209,000		1,132,638
Shimao Property Holdings Ltd.	940,500		1,890,696
Sino-Ocean Land Holdings Ltd.	3,344,000		3,572,663
Sinopec Shanghai Petrochemical Co. Ltd. Class Ha	2,508,000		1,152,055
Soho China Ltd.b	4,075,500		2,592,527
Tingyi (Cayman Islands) Holding Corp.	1,672,000		3,098,034
Tsingtao Brewery Co. Ltd. Class H	418,000		1,450,855
Want Want China Holdings Ltd.	1,254,000		747,541
Yanzhou Coal Mining Co. Ltd. Class H	2,090,000		3,246,895
Zhejiang Expressway Co. Ltd. Class H	836,000		810,106
Zijin Mining Group Co. Ltd. Class H	4,180,000		3,899,510
			278,033,573
HONG KONG – 14.69%
ASM Pacific Technology Ltd.	104,500		709,247
Bank of East Asia Ltd.	1,379,400		4,592,037
Belle International Holdings Ltd.	1,881,000		1,905,259
BOC Hong Kong (Holdings) Ltd.	2,090,000		4,455,042
Cathay Pacific Airways Ltd.	627,000		975,687

Security	Shares	Value
Cheung Kong (Holdings) Ltd.	418,000	$	5,398,907
China Insurance International Holdings Co. Ltd.a,b	836,000		2,524,164
Chinese Estates Holdings Ltd.	1,254,000		2,200,553
CLP Holdings Ltd.	836,000		5,684,763
CNPC Hong Kong Ltd.b	4,180,000		4,233,908
Esprit Holdings Ltd.	522,500		3,775,460
Foxconn International Holdings Ltd.a	627,000		438,493
Hang Lung Group Ltd.	836,000		4,330,991
Hang Lung Properties Ltd.	1,045,000		3,829,395
Hang Seng Bank Ltd.	334,400		5,432,347
Henderson Land Development Co. Ltd.	418,000		2,761,479
Hong Kong Aircraft Engineering Co. Ltd.	167,200		2,284,692
Hong Kong and China Gas Co. Ltd. (The)	1,881,000		4,208,559
Hong Kong Exchanges and Clearing Ltd.	731,500		13,799,304
Hongkong Electric Holdings Ltd.	313,500		1,729,295
Hopewell Holdings Ltd.	836,000		2,729,118
Huabao International Holdings Ltd.b	1,045,000		1,090,838
Hutchison Whampoa Ltd.	627,000		4,696,402
Hysan Development Co. Ltd.	1,045,000		2,858,562
Kerry Properties Ltd.	522,500		2,696,757
Kingboard Chemical Holdings Co. Ltd.b	313,500		995,103
Li & Fung Ltd.	1,672,000		4,929,671
Lifestyle International Holdings Ltd.	1,254,000		1,902,832
Link REIT (The)	1,881,000		4,271,663
Mongolia Energy Corp. Ltd.a	1,045,000		401,817
MTR Corp. Ltd.	418,000		1,515,577
New World Development Co. Ltd.	1,881,000		4,490,100
Noble Group Ltd.	1,672,000		2,423,272
NWS Holdings Ltd.	1,045,000		2,014,478
Orient Overseas International Ltd.	418,000		2,340,785
Shangri-La Asia Ltd.b	2,090,000		3,333,191
Shui On Land Ltd.	2,519,800		1,784,982
Sino Land Co. Ltd.	1,254,000		2,559,762

70 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI ALL COUNTRY ASIA EX JAPAN INDEX FUND

July 31, 2009

Security	Shares	Value
Sun Hung Kai Properties Ltd.	418,000	$	6,358,953
Swire Pacific Ltd. Class A	209,000		2,347,527
Television Broadcasts Ltd.	418,000		1,828,401
Tencent Holdings Ltd.b	627,000		8,462,423
Wharf (Holdings) Ltd. (The)	627,000		2,948,904
Wheelock and Co. Ltd.	836,000		2,373,146
Wing Hang Bank Ltd.	313,500		3,007,558
Yue Yuen Industrial Holdings Ltd.	1,463,000		3,973,671
			153,605,075
INDIA – 9.12%
HDFC Bank Ltd. SP ADR	229,900		22,477,323
ICICI Bank Ltd. SP ADR	464,816		14,571,982
Infosys Technologies Ltd. SP ADR	453,112		19,497,409
Mahanagar Telephone Nigam Ltd. SP ADR	573,914		2,416,178
Reliance Industries Ltd. SP GDRa,b,c	311,441		25,226,721
Wipro Ltd. SP ADRb	765,567		11,116,033
			95,305,646
INDONESIA – 3.59%
PT Aneka Tambang Tbk	6,130,000		1,358,791
PT Astra Agro Lestari Tbk	731,500		1,422,464
PT Astra International Tbk	1,672,000		4,935,980
PT Bank Central Asia Tbk	6,234,000		2,371,118
PT Bank Danamon Indonesia Tbk	3,530,000		1,716,096
PT Bank Mandiri Tbk	4,778,000		2,009,889
PT Bank Rakyat Indonesia Tbk	3,218,000		2,366,892
PT Bumi Resources Tbk	11,954,000		3,372,413
PT Indocement Tunggal Prakarsa Tbk	2,386,000		2,235,748
PT Indofood Sukses Makmur Tbk	8,106,000		1,858,050
PT International Nickel Indonesia Tbka	2,386,000		1,033,733
PT Perusahaan Gas Negara Tbk	7,274,000		2,565,139
PT Semen Gresik (Persero) Tbk	2,906,000		1,742,136
PT Tambang Batubara Bukit Asam Tbk	2,282,000		3,126,972
PT Unilever Indonesia Tbk	940,500		1,099,224
PT United Tractors Tbk	3,322,333		4,334,933
			37,549,578

Security	Shares	Value
PHILIPPINE ISLANDS – 1.14%
Ayala Corp.	153,800	$	959,650
Ayala Land Inc.	1,045,000		197,785
Banco de Oro Unibank Inc.	1,142,800		831,905
Bank of the Philippine Islands	1,226,000		1,160,212
Energy Development Corp.	8,516,000		797,047
Jollibee Foods Corp.	5,010,400		5,262,587
Manila Electric Co.	323,000		1,538,415
Metropolitan Bank & Trust Co.	1,475,600		1,196,930
			11,944,531
SINGAPORE – 7.87%
Ascendas Real Estate Investment Trust	1,532,535		1,806,671
CapitaLand Ltd.	1,672,500		4,430,464
CapitaMall Trust Management Ltd.	2,760,800		3,024,905
City Developments Ltd.	418,000		2,939,232
ComfortDelGro Corp. Ltd.	2,090,000		2,246,455
COSCO Corp. (Singapore) Ltd.	1,881,000		1,708,755
DBS Group Holdings Ltd.	418,500		4,028,141
Fraser and Neave Ltd.	1,463,000		4,210,291
Genting Singapore PLCa,b	4,807,000		2,816,764
Golden Agri-Resources Ltd.	6,487,707		1,912,053
Jardine Cycle & Carriage Ltd.	209,000		3,420,408
Keppel Corp. Ltd.	836,000		4,863,937
Neptune Orient Lines Ltd.b	1,463,000		1,684,116
Olam International Ltd.b	1,463,000		2,576,901
Oversea-Chinese Banking Corp. Ltd.b	1,045,000		5,666,863
SembCorp Industries Ltd.	1,045,000		2,326,168
SembCorp Marine Ltd.	1,881,000		4,069,706
Singapore Exchange Ltd.	1,045,000		6,319,060
Singapore Press Holdings Ltd.b	209,000		520,308
Singapore Technologies Engineering Ltd.	2,926,000		5,336,417
Singapore Telecommunications Ltd.	1,881,000		4,565,376
United Overseas Bank Ltd.	627,000		7,687,223
UOL Group Ltd.	627,000		1,521,792
Wilmar International Ltd.b	627,000		2,604,438
			82,286,444
SOUTH KOREA – 17.93%
KB Financial Group Inc. SP ADRa,b	680,136		29,184,636
Korea Electric Power Corp. SP ADRa	1,299,785		17,378,125

SCHEDULES OF INVESTMENTS 71

Schedule of Investments (Continued)

iSHARES^® MSCI ALL COUNTRY ASIA EX JAPAN INDEX FUND

July 31, 2009

Security	Shares	Value
KT Corp. SP ADRb	1,035,386	$	16,628,299
LG Display Co. Ltd. SP ADRb	640,445		9,254,430
POSCO SP ADR	269,819		27,270,606
Samsung Electronics Co. Ltd. SP GDRd	159,503		47,212,888
Shinhan Financial Group Co. Ltd. SP ADR	412,634		27,762,016
SK Telecom Co. Ltd. SP ADR	756,162		12,726,207
			187,417,207
TAIWAN – 14.87%
Advanced Semiconductor Engineering Inc. SP ADR	1,031,833		3,632,053
AU Optronics Corp. SP ADRa	1,220,351		13,594,710
Chunghwa Telecom Co. Ltd. SP ADRb	1,926,791		33,641,771
Hon Hai Precision Industry Co. Ltd. SP GDRd	1,796,146		12,501,176
Siliconware Precision Industries Co. SP ADR	1,998,876		13,552,379
Taiwan Semiconductor Manufacturing Co. Ltd. SP ADR	4,819,472		50,459,872
United Microelectronics Corp. SP ADRb	8,245,123		28,033,418
			155,415,379
THAILAND – 2.37%
Bangkok Bank PCL NVDR	270,316		881,724
Bank of Ayudhya PCL NVDR	3,118,800		1,658,839
Banpu PCL NVDR	313,500		3,454,672
BEC World PCL NVDR	2,682,000		1,560,494
CP All PCL NVDR	4,989,600		2,448,614
Glow Energy PCL NVDR	331,600		289,894
IRPC PCL NVDR	7,901,600		794,107
Kasikornbank PCL NVDR	998,100		2,126,425
Krung Thai Bank PCL NVDR	4,096,400		1,011,160
Land and Houses PCL NVDR	19,255,148		2,914,017
PTT Aromatics & Refining PCL NVDR	1,662,800		957,710
PTT Chemical PCL NVDR	61,200		107,905
PTT Exploration & Production PCL NVDR	934,800		3,790,843
Ratchaburi Electricity Generating Holding PCL NVDR	186,000		210,432

Security	Shares	Value
Thai Oil PCL NVDR	729,300	$	803,666
TMB Bank PCL NVDRa	72,112,800		1,716,467
			24,726,969
TOTAL COMMON STOCKS
(Cost: $801,763,245)			1,026,284,402
RIGHTS – 0.06%
SOUTH KOREA – 0.06%
KB Financial Group Inc.a,b	51,318		692,793
			692,793
TOTAL RIGHTS
(Cost: $0)			692,793
WARRANTS – 0.00%
SINGAPORE – 0.00%
Golden Agri-Resources Ltd. (Expires 7/23/12)a	323,418		28,035
			28,035
TOTAL WARRANTS
(Cost: $0)			28,035
EXCHANGE-TRADED FUNDS – 1.12%
iShares MSCI Malaysia Index Funde	1,195,710		11,670,130
TOTAL EXCHANGE-TRADED FUNDS (Cost: $8,812,097)			11,670,130
SHORT-TERM INVESTMENTS – 7.86%
MONEY MARKET FUNDS – 7.86%
Barclays Global Investors Funds Institutional Money Market Fund, SL Agency Shares 0.33%e,f,g	70,063,481		70,063,481
Barclays Global Investors Funds Prime Money Market Fund, SL Agency Shares 0.26% e,f,g	9,701,715		9,701,715

72 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI ALL COUNTRY ASIA EX JAPAN INDEX FUND

July 31, 2009

Security	Shares	Value
Barclays Global Investors Funds
Treasury Money Market
Fund, SL Agency Shares 0.12%e,f	2,380,248	$	2,380,248
			82,145,444
TOTAL SHORT-TERM INVESTMENTS
(Cost: $82,145,444)			82,145,444
TOTAL INVESTMENTS IN SECURITIES – 107.22% (Cost: $892,720,786)			1,120,820,804
Other Assets, Less Liabilities – (7.22)%			(75,474,033	)
NET ASSETS – 100.00%		$	1,045,346,771

NVDR – Non-Voting Depositary Receipts

SP ADR – Sponsored American Depositary Receipts

SP GDR – Sponsored Global Depositary Receipts

^a Non-income earning security.

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

^c This security may be resold to qualified institutional buyers under Rule 144A of the Securities Act of 1933.

^d This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933.

^e Affiliated issuer. See Note 2.

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

^g All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 73

Schedule of Investments

iSHARES^® MSCI EAFE GROWTH INDEX FUND

July 31, 2009

Security	Shares	Value
COMMON STOCKS – 99.45%
AUSTRALIA – 7.53%
Alumina Ltd.	278,340	$	395,690
Arrow Energy Ltd.a	158,940		566,858
Asciano Groupa	601,740		800,410
ASX Ltd.	47,820		1,493,999
BHP Billiton Ltd.	899,700		28,310,498
Billabong International Ltd.	54,540		417,145
Coca-Cola Amatil Ltd.	144,240		1,118,797
Cochlear Ltd.	16,983		785,571
Computershare Ltd.	125,105		1,022,379
CSL Ltd.	159,900		4,061,099
Energy Resources of Australia Ltd.	18,780		395,003
Fortescue Metals Group Ltd.a	342,815		1,202,697
Harvey Norman Holdings Ltd.	157,696		430,010
James Hardie Industries NVa	81,240		350,527
Leighton Holdings Ltd.	20,760		520,871
Lion Nathan Ltd.	84,780		825,342
Metcash Ltd.	122,280		435,094
Newcrest Mining Ltd.	131,220		3,272,692
Nufarm Ltd.	47,340		426,620
Origin Energy Ltd.	244,501		2,947,356
Paladin Energy Ltd.a	99,660		377,807
QBE Insurance Group Ltd.	129,420		2,098,070
Rio Tinto Ltd.	117,318		5,890,952
Santos Ltd.	146,746		1,771,401
Sonic Healthcare Ltd.	87,290		849,052
Telstra Corp. Ltd.	273,060		801,340
Toll Holdings Ltd.	115,440		651,643
Transurban Group	296,460		1,067,181
Westpac Banking Corp.	765,180		13,797,712
Woodside Petroleum Ltd.	130,817		4,970,090
Woolworths Ltd.	321,864		7,291,600
WorleyParsons Ltd.	40,939		878,434
			90,223,940
AUSTRIA – 0.12%
Oesterreichische Elektrizitaetswirtschafts AG Class A	25,020		1,212,791
Vienna Insurance Group	5,220		239,781
			1,452,572

Security	Shares	Value
BELGIUM – 0.89%
Anheuser-Busch InBev NV	191,760	$	7,589,188
Colruyt SA	5,340		1,188,613
Groupe Bruxelles Lambert SA	13,260		1,046,749
UCB SA	15,540		511,139
Umicore	15,420		400,506
			10,736,195
DENMARK – 1.42%
A.P. Moller – Maersk A/S Class A	120		722,031
A.P. Moller – Maersk A/S Class B	300		1,856,489
Coloplast A/S Class B	4,140		301,916
DSV A/Sa	54,736		750,401
Novo Nordisk A/S Class B	121,460		7,111,580
Novozymes A/S Class B	13,689		1,223,756
Topdanmark A/Sa	5,110		694,715
Vestas Wind Systems A/Sa	54,305		3,805,181
William Demant Holding A/Sa	8,712		515,901
			16,981,970
FINLAND – 1.02%
Kone OYJ Class B	44,100		1,492,419
Nokia OYJ	734,820		9,730,328
Nokian Renkaat OYJ	29,045		610,266
Sampo OYJ Class A	22,380		464,833
			12,297,846
FRANCE – 7.35%
Accor SA	26,780		1,137,122
Aeroports de Paris	8,782		705,082
Alcatel-Lucenta	292,680		804,997
ALSTOM	56,940		3,888,604
BioMerieux SA	1,920		185,864
Bureau Veritas SA	12,840		605,280
Cap Gemini SA	37,860		1,738,834
Carrefour SA	105,900		4,944,852
Christian Dior SA	17,400		1,502,333
Compagnie Generale de Geophysique-Veritasa	24,600		495,946
Compagnie Generale des Etablissements Michelin Class B	20,520		1,473,812
Danone SA	146,022		7,793,369
Dassault Systemes SA	17,107		851,296
Electricite de France	60,600		2,987,717

74 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI EAFE GROWTH INDEX FUND

July 31, 2009

Security	Shares	Value
Eramet	1,200	$	335,581
Essilor International SA	53,760		2,964,890
Eutelsat Communications	8,880		246,819
Hermes Internationalb	14,700		2,197,676
Icade	6,000		522,299
Iliad SA	3,240		344,054
L’Air Liquide SA	69,068		7,173,704
Legrand SA	23,100		562,154
L’Oreal SA	65,820		5,674,565
LVMH Moet Hennessy Louis Vuitton SA	65,880		5,911,373
Neopost SA	9,240		782,726
Pernod Ricard SAb	54,432		4,207,361
Publicis Groupe SA	29,520		1,043,788
Safran SA	52,440		806,663
SES SA	80,280		1,577,503
Societe BIC	6,300		375,717
Sodexo	29,048		1,521,293
STMicroelectronics NV	117,561		893,196
Suez Environnement SA	63,360		1,201,009
Thales SA	8,700		365,839
Total SA	367,680		20,282,939
			88,106,257
GERMANY – 5.98%
Adidas AG	55,200		2,320,403
Bayer AG	205,800		12,563,743
Bayerische Motoren Werke AG	86,820		3,991,778
Beiersdorf AG	25,260		1,265,251
Daimler AG Registered	118,800		5,468,880
Deutsche Bank AG Registered	52,500		3,378,463
Deutsche Boerse AG	53,520		4,218,816
Fraport AG	2,400		109,496
Fresenius Medical Care AG & Co. KGaA	52,812		2,412,447
Fresenius SE	6,360		311,083
GEA Group AG	46,380		755,528
Hamburger Hafen und Logistik AG	5,520		251,997
Hannover Rueckversicherung AG Registereda	11,940		483,293
Henkel AG & Co. KGaA	39,120		1,224,609
Hochtief AG	10,391		620,505
K+S AG	41,460		2,314,753

Security	Shares	Value
Linde AG	39,780	$	3,734,682
MAN SE	18,360		1,262,450
Merck KGaA	16,500		1,527,555
METRO AG	16,620		957,365
Puma AG	1,624		409,440
QIAGEN NVa	52,500		996,643
SAP AG	229,260		10,726,101
SolarWorld AGb	23,280		563,069
Suedzucker AG	22,740		475,212
United Internet AG Registereda	27,300		346,406
Volkswagen AG	23,580		8,433,189
Wacker Chemie AG	4,020		533,688
			71,656,845
GREECE – 0.52%
Coca-Cola Hellenic Bottling Co. SA SP ADR	63,809		1,475,264
Hellenic Telecommunications Organization SA SP ADR	170,778		1,338,900
National Bank of Greece SA SP ADR	588,255		3,488,352
			6,302,516
HONG KONG – 2.54%
ASM Pacific Technology Ltd.	60,000		407,223
Bank of East Asia Ltd.	180,000		599,222
Cathay Pacific Airways Ltd.	240,000		373,469
Cheung Kong (Holdings) Ltd.b	240,000		3,099,851
Esprit Holdings Ltd.	276,500		1,997,923
Foxconn International Holdings Ltd.a	600,000		419,610
Hang Lung Properties Ltd.	600,000		2,198,695
Henderson Land Development Co. Ltd.	240,000		1,585,538
Hong Kong Aircraft Engineering Co. Ltd.	24,000		327,946
Hong Kong and China Gas Co. Ltd. (The)	1,080,930		2,418,478
Hong Kong Exchanges and Clearing Ltd.	270,000		5,093,386
Kerry Properties Ltd.	180,000		929,026
Li & Fung Ltd.	611,200		1,802,043
Lifestyle International Holdings Ltd.	120,000		182,089

SCHEDULES OF INVESTMENTS 75

Schedule of Investments (Continued)

iSHARES^® MSCI EAFE GROWTH INDEX FUND

July 31, 2009

Security	Shares	Value
Mongolia Energy Corp. Ltd.a	300,000	$	115,354
MTR Corp. Ltd.	270,000		978,961
Noble Group Ltd.	240,000		347,838
Shangri-La Asia Ltd.	368,000		586,897
Sun Hung Kai Properties Ltd.	366,000		5,567,887
Swire Pacific Ltd. Class A	60,000		673,931
Wheelock and Co. Ltd.	240,000		681,286
			30,386,653
IRELAND – 0.17%
Elan Corp. PLCa	127,089		1,027,028
Kerry Group PLC Class A	43,275		1,019,689
			2,046,717
ITALY – 1.28%
A2A SpA	292,920		530,737
ACEA SpA	23,880		270,170
Atlantia SpA	62,640		1,374,746
Autogrill SpAa	42,908		413,967
Banca Carige SpA	204,900		580,703
Banca Monte dei Paschi di Siena SpA	425,940		794,098
Fiat SpAa	132,360		1,459,943
Lottomatica SpA	16,620		349,911
Luxottica Group SpAa	37,620		936,576
Mediobanca SpA	71,160		993,738
Mediolanum SpA	54,420		309,194
Prysmian SpA	28,402		486,022
Saipem SpA	71,940		1,937,866
Snam Rete Gas SpA	394,440		1,718,195
Tenaris SA	124,080		1,871,729
Terna SpA	135,780		475,961
Unione di Banche Italiane ScpA	61,620		857,456
			15,361,012
JAPAN – 23.08%
ABC-Mart Inc.	6,000		170,492
Advantest Corp.	18,000		390,462
AEON Mall Co. Ltd.	19,600		411,786
Ajinomoto Co. Inc.	60,000		572,299
All Nippon Airways Co. Ltd.	120,000		332,791
Asahi Breweries Ltd.	96,000		1,517,727
Asahi Kasei Corp.	300,000		1,541,047
ASICS Corp.	26,000		244,446
Astellas Pharma Inc.	30,000		1,137,665

Security	Shares	Value
Bank of Kyoto Ltd. (The)	60,000	$	540,785
Benesse Corp.	18,000		775,251
Bridgestone Corp.	84,000		1,450,664
Casio Computer Co. Ltd.	18,000		146,919
Central Japan Railway Co.	427		2,561,238
Chubu Electric Power Co. Inc.	66,000		1,580,755
Chugai Pharmaceutical Co. Ltd.	60,000		1,093,545
Chugoku Bank Ltd. (The)	60,000		804,244
Chugoku Electric Power Co. Inc. (The)	66,000		1,374,148
Daido Steel Co. Ltd.	60,000		247,072
Daihatsu Motor Co. Ltd.	60,000		671,254
Daikin Industries Ltd.	73,100		2,641,567
Daito Trust Construction Co. Ltd.	12,000		587,426
Daiwa Securities Group Inc.	300,000		1,764,799
Dena Co. Ltd.	60		182,342
Denso Corp.	126,000		3,699,459
Dowa Holdings Co. Ltd.	60,000		272,283
East Japan Railway Co.	86,500		4,934,030
Elpida Memory Inc.a	30,500		346,027
FamilyMart Co. Ltd.	12,000		388,256
Fanuc Ltd.	49,500		4,040,286
Fast Retailing Co. Ltd.	12,300		1,587,972
Fuji Heavy Industries Ltd.	120,000		481,538
Fujitsu Ltd.	360,000		2,352,224
Furukawa Electric Co. Ltd. (The)	180,000		864,121
GS Yuasa Corp.b	120,000		1,090,393
Hachijuni Bank Ltd. (The)	120,000		698,356
Hankyu Hanshin Holdings Inc.	363,000		1,662,566
Hirose Electric Co. Ltd.	6,600		734,913
Hiroshima Bank Ltd. (The)	180,000		744,997
Hisamitsu Pharmaceutical Co. Inc.	18,000		618,310
Hitachi Construction Machinery Co. Ltd.	30,500		537,943
Hitachi High-Technologies Corp.	6,000		116,855
Hitachi Metals Ltd.	60,000		586,165
Hokuhoku Financial Group Inc.	300,000		680,708
Hokuriku Electric Power Co.	54,000		1,228,111
Honda Motor Co. Ltd.	222,000		7,112,769
Hoya Pentax HD Corp.	114,000		2,736,383
IBIDEN Co. Ltd.	36,000		1,191,239
IHI Corp.a	360,000		605,074
INPEX Corp.	185		1,407,006

76 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI EAFE GROWTH INDEX FUND

July 31, 2009

Security	Shares	Value
Isetan Mitsukoshi Holdings Ltd.b	60,080	$	633,019
ITOCHU Corp.	120,000		892,484
Iyo Bank Ltd. (The)	60,000		623,982
JAFCO Co. Ltd.	12,200		425,485
Japan Airlines Corp.a	240,000		405,904
Japan Steel Works Ltd. (The)	127,000		1,654,288
Japan Tobacco Inc.	1,200		3,453,963
JGC Corp.	61,000		1,050,896
Joyo Bank Ltd. (The)	180,000		911,392
JSR Corp.	48,800		874,550
Jupiter Telecommunications Co. Ltd.	360		300,646
Kajima Corp.	180,000		504,858
Kansai Electric Power Co. Inc. (The)	132,000		2,932,717
Kao Corp.	120,000		2,703,924
Kawasaki Heavy Industries Ltd.	420,000		1,076,527
KDDI Corp.	360		1,898,419
Keihin Electric Express Railway Co. Ltd.	136,000		1,127,202
Keio Corp.	60,000		358,002
Keyence Corp.	8,825		1,732,646
Kikkoman Corp.	60,000		697,726
Kintetsu Corp.	360,000		1,667,735
Kobe Steel Ltd.	660,000		1,268,764
Komatsu Ltd.	240,000		3,905,247
Konica Minolta Holdings Inc.	64,500		701,271
Kurita Water Industries Ltd.	38,300		1,263,323
Kyocera Corp.	18,000		1,440,832
Kyowa Hakko Kirin Co. Ltd.b	60,000		687,011
Lawson Inc.	18,000		743,106
Matsui Securities Co. Ltd.	36,000		341,489
Mazda Motor Corp.	240,000		625,243
McDonald’s Holdings Co. (Japan) Ltd.	30,000		542,676
Mediceo Paltac Holdings Co. Ltd.	18,000		223,688
Meiji Holdings Co. Ltd.a	18,000		722,307
Mitsubishi Chemical Holdings Corp.	300,000		1,339,356
Mitsubishi Electric Corp.	540,000		3,936,761
Mitsubishi Estate Co. Ltd.	305,000		5,052,629
Mitsubishi Heavy Industries Ltd.	780,000		3,105,415
Mitsubishi Materials Corp.	240,000		647,933

Security	Shares	Value
Mitsubishi Motors Corp.a,b	1,020,000	$	1,875,098
Mitsubishi UFJ Financial Group Inc.	840,000		4,994,380
Mitsui Engineering & Shipbuilding Co. Ltd.	189,000		476,495
Mitsui Fudosan Co. Ltd.	204,500		3,737,906
Mitsui Sumitomo Insurance Group Holdings Inc.	108,000		2,756,867
Mitsumi Electric Co. Ltd.	18,000		441,515
Mizuho Trust & Banking Co. Ltd.a	480,000		615,158
NEC Corp.a	480,000		1,674,038
NGK Insulators Ltd.	60,000		1,351,962
NGK Spark Plug Co. Ltd.	60,000		658,018
Nidec Corp.	30,900		2,223,489
Nikon Corp.	73,000		1,458,543
Nintendo Co. Ltd.	30,000		8,064,499
Nippon Electric Glass Co. Ltd.	68,500		790,094
Nippon Mining Holdings Inc.	60,000		283,628
Nippon Sheet Glass Co. Ltd.	180,000		535,112
Nippon Steel Corp.	480,000		1,911,025
Nipponkoa Insurance Co. Ltd.	120,000		712,222
Nishi-Nippon City Bank Ltd. (The)	120,000		302,537
Nissan Chemical Industries Ltd.	61,000		816,367
Nissan Motor Co. Ltd.	330,000		2,388,466
Nisshin Steel Co. Ltd.	180,000		342,245
Nisshinbo Holdings Inc.	60,000		763,275
Nissin Foods Holdings Co. Ltd.	18,000		571,038
Nitori Co. Ltd.	12,200		868,911
Nomura Real Estate Holdings Inc.	18,000		314,638
Nomura Research Institute Ltd.	30,500		751,326
NTT Data Corp.	366		1,226,472
NTT Urban Development Corp.	360		338,841
Obayashi Corp.	180,000		799,832
Odakyu Electric Railway Co. Ltd.	186,000		1,598,277
Oji Paper Co. Ltd.	240,000		1,036,189
Olympus Corp.	54,000		1,542,938
Omron Corp.	42,000		676,800
Oriental Land Co. Ltd.	12,900		859,142
ORIX Corp.	10,800		679,573
Osaka Gas Co. Ltd.	360,000		1,191,239
OSAKA Titanium technologies Co. Ltd.	6,000		206,734

SCHEDULES OF INVESTMENTS 77

Schedule of Investments (Continued)

iSHARES^® MSCI EAFE GROWTH INDEX FUND

July 31, 2009

Security	Shares	Value
Otsuka Corp.	1,600	$	83,030
Panasonic Corp.	522,000		8,225,222
Panasonic Electric Works Co. Ltd.	120,000		1,265,613
Rakuten Inc.	1,885		1,203,929
Resona Holdings Inc.b	138,000		2,026,619
Rinnai Corp.	12,000		520,616
Sankyo Co. Ltd.	6,000		355,481
Santen Pharmaceutical Co. Ltd.	18,000		558,748
SANYO Electric Co. Ltd.a,b	420,000		935,343
Sapporo Holdings Ltd.	60,000		360,523
Secom Co. Ltd.	54,000		2,297,390
Seven & I Holdings Co. Ltd.	222,000		5,177,163
Seven Bank Ltd.	240		622,974
Sharp Corp.	180,000		1,991,071
Shikoku Electric Power Co. Inc.	36,000		1,072,115
Shimadzu Corp.	60,000		462,629
Shimamura Co. Ltd.	6,100		548,516
Shimano Inc.	24,400		994,506
Shimizu Corp.	60,000		245,181
Shin-Etsu Chemical Co. Ltd.	109,500		5,866,380
Shionogi & Co. Ltd.	77,000		1,584,568
Shiseido Co. Ltd.	68,000		1,102,915
Shizuoka Bank Ltd. (The)	180,000		1,762,277
SMC Corp.	12,700		1,424,823
SoftBank Corp.	204,000		4,318,084
Sony Corp.	264,000		7,418,457
Sony Financial Holdings Inc.	244		747,674
Square Enix Holdings Co. Ltd.	12,000		265,350
Stanley Electric Co. Ltd.	36,000		742,728
Sumco Corp.	30,000		559,378
Sumitomo Chemical Co. Ltd.	420,000		2,069,226
Sumitomo Electric Industries Ltd.	108,300		1,341,307
Sumitomo Metal Industries Ltd.	900,000		2,231,210
Sumitomo Metal Mining Co. Ltd.	120,500		1,803,797
Sumitomo Realty & Development Co. Ltd.	104,000		2,130,364
Suruga Bank Ltd.	86,000		908,829
Suzuki Motor Corp.	96,000		2,410,211
T&D Holdings Inc.	39,000		1,138,925
Taiyo Nippon Sanso Corp.	120,000		1,147,119
Takashimaya Co. Ltd.	76,000		622,722
Terumo Corp.	48,800		2,465,760

Security	Shares	Value
THK Co. Ltd.	30,000	$	489,732
Tobu Railway Co. Ltd.	256,000		1,546,300
Toho Co. Ltd.	24,000		424,560
Toho Gas Co. Ltd.	180,000		720,416
Tohoku Electric Power Co. Inc.	120,000		2,484,584
Tokio Marine Holdings Inc.	186,000		5,373,181
Tokuyama Corp.	60,000		451,284
Tokyo Electron Ltd.	48,500		2,527,023
Tokyo Gas Co. Ltd.	600,000		2,187,090
Tokyu Corp.	300,000		1,462,262
Toray Industries Inc.	376,000		1,872,199
Toshiba Corp.	1,080,000		4,764,956
Tosoh Corp.	120,000		349,178
Toyoda Gosei Co. Ltd.	18,300		563,254
Toyota Boshoku Corp.	18,000		350,186
Toyota Tsusho Corp.	24,000		366,574
Trend Micro Inc.	30,500		1,047,691
Tsumura & Co.	18,000		578,602
Ube Industries Ltd.	250,000		719,576
Uni-Charm Corp.	12,000		965,597
Ushio Inc.	24,000		450,024
West Japan Railway Co.	240		761,385
Yahoo! Japan Corp.	4,270		1,392,757
Yakult Honsha Co. Ltd.	36,000		788,487
Yamada Denki Co. Ltd.	25,350		1,576,469
Yamato Holdings Co. Ltd.	60,000		886,811
Yamato Kogyo Co. Ltd.	12,000		371,868
Yaskawa Electric Corp.	61,000		431,252
			276,679,084
NETHERLANDS – 2.60%
ASML Holding NV	81,840		2,131,446
Fugro NV CVA	14,760		658,855
Heineken Holding NV	20,040		686,143
Heineken NV	64,200		2,549,458
Koninklijke Ahold NV	325,260		3,679,415
Koninklijke KPN NV	476,220		7,119,572
Randstad Holding NVa	24,300		837,167
Reed Elsevier NV	90,420		942,731
Unilever NV CVA	422,340		11,478,470
Wolters Kluwer NV	55,140		1,078,811
			31,162,068

78 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI EAFE GROWTH INDEX FUND

July 31, 2009

Security	Shares	Value
NEW ZEALAND – 0.12%
Auckland International Airport Ltd.	175,320	$	196,217
Contact Energy Ltd.	126,480		524,589
Fletcher Building Ltd.	34,140		161,378
Sky City Entertainment Group Ltd.	278,160		602,487
			1,484,671
NORWAY – 0.56%
Norsk Hydro ASAa	38,520		225,267
Renewable Energy Corp. ASAa	83,755		662,187
Seadrill Ltd.	51,000		815,218
StatoilHydro ASA	102,180		2,174,431
Telenor ASAa	187,140		1,718,822
Yara International ASA	36,420		1,124,092
			6,720,017
PORTUGAL – 0.37%
BRISA – Auto-estradas de Portugal SA	71,952		592,678
EDP Renovaveis SAa	50,040		511,082
Energias de Portugal SA	607,200		2,395,767
Galp Energia SGPS SA Class B	30,660		399,038
Jeronimo Martins SGPS SA	36,120		251,949
Portugal Telecom SGPS SA Registered	29,220		294,461
			4,444,975
SINGAPORE – 1.43%
City Developments Ltd.	189,000		1,328,983
ComfortDelGro Corp. Ltd.	420,000		451,441
COSCO Corp. (Singapore) Ltd.	120,000		109,011
Genting Singapore PLCa,b	1,080,000		632,849
Golden Agri-Resources Ltd.	561,600		165,514
Keppel Corp. Ltd.	366,000		2,129,427
Olam International Ltd.b	300,000		528,414
Oversea-Chinese Banking Corp. Ltd.b	660,000		3,579,071
SembCorp Industries Ltd.	144,000		320,544
SembCorp Marine Ltd.	180,000		389,446
Singapore Exchange Ltd.b	255,000		1,541,972
Singapore Press Holdings Ltd.	240,000		597,483
Singapore Technologies Engineering Ltd.	480,000		875,420

Security	Shares	Value
Singapore Telecommunications Ltd.	1,440,000	$	3,495,024
Wilmar International Ltd.	240,000		996,914
			17,141,513
SPAIN – 3.92%
Abertis Infraestructuras SA	77,919		1,605,124
Acciona SA	7,980		958,831
Actividades de Construcciones y Servicios SA	43,380		2,299,560
Banco de Valencia SA	51,120		495,732
Banco Popular Espanol SA	51,408		461,718
Bankinter SA	82,020		926,782
Cintra Concesiones de Infraestructuras de Transporte SA	64,486		525,694
Criteria CaixaCorp SAb	117,780		563,566
Enagas SA	46,860		921,796
Gamesa Corporacion Tecnologica SA	51,360		1,105,341
Grifols SA	34,080		617,249
Iberdrola Renovables SA	256,323		1,177,422
Indra Sistemas SA	40,800		932,738
Industria de Diseno Textil SA	58,330		3,120,998
Mapfre SAb	214,920		798,322
Red Electrica Corporacion SA	32,450		1,516,817
Telefonica SA	1,131,792		28,008,260
Zardoya Otis SAb	38,201		863,302
Zardoya Otis SA Newc	1,878		42,441
			46,941,693
SWEDEN – 3.05%
Alfa Laval AB	99,480		1,073,275
Assa Abloy AB Class B	68,580		1,120,204
Atlas Copco AB Class A	185,160		2,185,739
Atlas Copco AB Class B	108,000		1,134,064
Electrolux AB Class Ba	68,040		1,260,813
Getinge AB Class B	58,824		872,029
Hennes & Mauritz AB Class B	133,860		7,882,440
Husqvarna AB Class Ba	123,540		771,563
Investor AB Class B	131,880		2,326,133
Lundin Petroleum ABa	65,351		573,199
Millicom International Cellular SA SDRa	17,640		1,314,774

SCHEDULES OF INVESTMENTS 79

Schedule of Investments (Continued)

iSHARES^® MSCI EAFE GROWTH INDEX FUND

July 31, 2009

Security	Shares	Value
Sandvik AB	268,140	$	2,530,387
Scania AB Class B	90,780		1,052,930
Securitas AB Class B	88,680		827,727
Skandinaviska Enskilda Banken AB Class Aa	185,580		1,026,570
SKF AB Class B	115,740		1,719,745
Swedish Match AB	69,008		1,304,799
Telefonaktiebolaget LM Ericsson AB Class B	481,260		4,676,981
Volvo AB Class A	110,940		780,431
Volvo AB Class B	287,040		2,078,344
			36,512,147
SWITZERLAND – 13.92%
ABB Ltd. Registereda	580,581		10,530,027
Actelion Ltd. Registereda	26,940		1,475,599
Adecco SA Registered	32,840		1,571,438
Aryzta AGa	19,200		668,990
Compagnie Financiere Richemont SA Class A Bearer Units	132,600		3,235,378
Credit Suisse Group AG Registered	297,120		13,941,519
Geberit AG Registered	11,886		1,646,646
Givaudan SA Registered	2,380		1,580,033
Holcim Ltd. Registereda	58,712		3,540,450
Julius Baer Holding AG Registered	57,240		2,707,100
Kuehne & Nagel International AG Registered	16,083		1,329,976
Lindt & Spruengli AG Participation Certificates	240		472,753
Logitech International SA Registereda	39,600		662,300
Lonza Group AG Registered	13,500		1,328,362
Nestle SA Registered	976,500		39,903,805
Nobel Biocare Holding AG Registered	32,069		756,247
Novartis AG Registered	570,780		25,954,911
Roche Holding AG Genusschein	186,731		29,235,004
Schindler Holding AG Participation Certificates	14,400		923,206
SGS SA Registered	1,330		1,559,545
Sonova Holding AG Registered	13,154		1,151,930
Straumann Holding AG Registered	2,541		552,704

Security	Shares	Value
Swatch Group AG (The) Bearer	8,201	$	1,488,181
Swatch Group AG (The) Registered	9,780		360,304
Syngenta AG Registered	26,280		6,021,508
Synthes Inc.b	16,819		1,876,852
UBS AG Registereda	852,120		12,359,204
			166,833,972
UNITED KINGDOM – 21.58%
Admiral Group PLC	49,140		779,229
AMEC PLC	85,140		995,103
Anglo American PLC	142,380		4,555,662
Antofagasta PLC	59,760		749,983
Associated British Foods PLC	44,220		583,549
AstraZeneca PLC	131,100		6,092,156
Autonomy Corp. PLCa	58,260		1,134,890
BAE Systems PLC	962,700		4,899,757
BG Group PLC	910,200		15,074,661
BHP Billiton PLC	589,440		15,273,684
British Airways PLCa	153,600		362,616
British American Tobacco PLC	517,620		15,944,173
British Sky Broadcasting Group PLC	320,603		2,902,054
Bunzl PLC	85,565		734,803
Burberry Group PLC	134,888		1,028,671
Cable & Wireless PLC	635,100		1,518,283
Cadbury PLC	325,080		3,185,099
Cairn Energy PLCa	35,160		1,396,629
Capita Group PLC	177,000		1,958,708
Carphone Warehouse Group PLC (The)	117,663		350,146
Centrica PLC	1,320,420		4,821,401
Cobham PLC	359,243		1,066,668
Compass Group PLC	492,660		2,634,039
Diageo PLC	694,800		10,804,580
Drax Group PLC	91,841		609,415
Eurasian Natural Resources Corp.	81,938		1,172,986
Experian PLC	262,920		2,153,257
Fresnillo PLC	42,240		437,322
G4S PLC	326,408		1,155,324
GlaxoSmithKline PLC	1,391,280		26,502,070
ICAP PLC	142,928		1,075,767
Imperial Tobacco Group PLC	275,497		7,814,697
InterContinental Hotels Group PLC	88,501		996,238

80 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI EAFE GROWTH INDEX FUND

July 31, 2009

Security	Shares	Value
International Power PLC	318,000	$	1,345,669
Invensys PLC	221,063		945,542
J Sainsbury PLC	292,334		1,538,751
Johnson Matthey PLC	51,681		1,213,219
Kingfisher PLC	301,680		1,064,048
Liberty International PLC	81,072		586,007
London Stock Exchange Group PLC	38,640		456,102
Lonmin PLCa	42,600		975,323
Marks & Spencer Group PLC	189,900		1,088,510
National Grid PLC	614,460		5,689,342
Next PLC	51,360		1,451,759
Randgold Resources Ltd.	16,740		1,008,800
Reckitt Benckiser PLC	165,677		7,899,441
Reed Elsevier PLC	296,416		2,079,907
Rio Tinto PLC	369,660		15,253,608
Rolls-Royce Group PLCa	454,920		3,124,228
Royal Bank of Scotland Group PLCa	2,212,080		1,644,599
SABMiller PLC	242,823		5,583,564
Sage Group PLC (The)	349,387		1,131,818
Scottish & Southern Energy PLC	229,080		4,204,168
Serco Group PLC	132,906		889,065
Severn Trent PLC	27,480		441,226
Shire PLC	150,840		2,220,622
Smith & Nephew PLC	247,220		1,948,854
Smiths Group PLC	86,700		1,034,896
Standard Chartered PLC	512,760		12,079,625
Standard Life PLC	267,960		878,702
Tesco PLC	2,099,400		12,790,802
Thomas Cook Group PLC	116,520		419,185
Thomson Reuters PLC	50,640		1,607,710
3i Group PLC	244,020		1,107,452
TUI Travel PLC	152,760		574,885
Tullow Oil PLC	212,580		3,483,729
Unilever PLC	335,040		8,776,048
Vedanta Resources PLC	36,720		1,073,857
Whitbread PLC	43,105		618,500
Wm Morrison Supermarkets PLC	598,500		2,674,042
Xstrata PLC	519,819		6,964,922
			258,632,147
TOTAL COMMON STOCKS
(Cost: $1,323,528,638)			1,192,104,810

Security	Shares	Value
PREFERRED STOCKS – 0.26%
GERMANY – 0.26%
Fresenius SE	21,120	$	1,191,128
Henkel AG & Co. KGaA	53,184		1,945,361
			3,136,489
TOTAL PREFERRED STOCKS
(Cost: $4,032,627)			3,136,489
WARRANTS – 0.00%
SINGAPORE – 0.00%
Golden Agri-Resources Ltd.
(Expires 7/23/12)a	32,640		2,829
			2,829
TOTAL WARRANTS
(Cost: $0)			2,829
SHORT-TERM INVESTMENTS – 1.33%
MONEY MARKET FUNDS – 1.33%
Barclays Global Investors Funds Institutional Money Market Fund, SL Agency Shares 0.33%d,e,f	13,818,535		13,818,535
Barclays Global Investors Funds Prime Money Market Fund, SL Agency Shares 0.26%d,e,f	1,913,458		1,913,458
Barclays Global Investors Funds Treasury Money Market Fund, SL Agency Shares 0.12%d,e	215,613		215,613
			15,947,606
TOTAL SHORT-TERM INVESTMENTS
(Cost: $15,947,606)			15,947,606

SCHEDULES OF INVESTMENTS 81

Schedule of Investments (Continued)

iSHARES^® MSCI EAFE GROWTH INDEX FUND

July 31, 2009

	Value
TOTAL INVESTMENTS IN SECURITIES – 101.04%
(Cost: $1,343,508,871)	$	1,211,191,734
Other Assets, Less Liabilities – (1.04)%		(12,495,826	)
NET ASSETS – 100.00%	$	1,198,695,908

SDR – Swedish 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 using Level 3 inputs. 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 All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

82 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI EAFE VALUE INDEX FUND

July 31, 2009

Security	Shares	Value
COMMON STOCKS – 99.05%
AUSTRALIA – 7.21%
AGL Energy Ltd.	116,031	$	1,437,289
Alumina Ltd.	292,330		415,579
Amcor Ltd.	244,728		1,007,100
AMP Ltd.	458,924		2,144,179
Aristocrat Leisure Ltd.	75,640		270,398
Australia and New Zealand Banking Group Ltd.	585,280		9,016,189
AXA Asia Pacific Holdings Ltd.	231,260		817,097
Bendigo and Adelaide Bank Ltd.	65,348		445,482
BlueScope Steel Ltd.	410,192		1,149,214
Boral Ltd.	169,880		704,736
Brambles Ltd.	323,826		1,612,584
Caltex Australia Ltd.	35,092		380,134
CFS Retail Property Trust	370,355		528,039
Commonwealth Bank of Australia	365,304		12,998,167
Crown Ltd.	129,528		807,623
CSR Ltd.	271,622		418,883
Dexus Property Group	909,412		551,909
Fairfax Media Ltd.	486,204		596,203
Foster’s Group Ltd.	485,026		2,173,390
Goodman Fielder Ltd.	278,132		320,247
GPT Group	2,256,851		994,404
Incitec Pivot Ltd.	399,528		916,727
Insurance Australia Group Ltd.	502,386		1,532,807
James Hardie Industries NVa	48,856		210,799
Leighton Holdings Ltd.	21,080		528,900
Lend Lease Corp. Ltd.	79,670		513,311
Macquarie Airports	181,474		375,662
Macquarie Group Ltd.	73,470		2,688,710
Macquarie Infrastructure Group	637,360		768,310
Mirvac Group	565,992		599,935
National Australia Bank Ltd.	473,742		9,582,259
OneSteel Ltd.	269,328		669,478
Orica Ltd.	78,988		1,474,873
OZ Minerals Ltd.	898,380		836,492
Paladin Energy Ltd.a	41,416		157,006
Qantas Airways Ltd.	218,061		420,581
QBE Insurance Group Ltd.	124,434		2,017,240
Santos Ltd.	80,042		966,203
Sims Metal Management Ltd.	36,208		838,327

Security	Shares	Value
Stockland Corp. Ltd.	545,618	$	1,428,838
Suncorp-Metway Ltd.	319,743		1,887,310
Tabcorp Holdings Ltd.	161,354		971,185
Tatts Group Ltd.	321,036		653,889
Telstra Corp. Ltd.	741,272		2,175,385
Toll Holdings Ltd.	63,860		360,481
Wesfarmers Ltd.	253,504		5,447,902
Wesfarmers Ltd. Partially Protected	35,340		759,177
Westfield Group	511,376		4,816,750
			82,387,383
AUSTRIA – 0.58%
Erste Group Bank AG	48,078		1,669,302
OMV AG	41,354		1,632,835
Raiffeisen International Bank Holding AG	15,066		668,776
Telekom Austria AG	88,536		1,344,340
Vienna Insurance Group	8,494		390,173
voestalpine AG	32,067		885,164
			6,590,590
BELGIUM – 1.05%
Belgacom SA	41,974		1,495,750
Compagnie Nationale a Portefeuille SA	9,610		494,300
Delhaize Group	26,232		1,865,843
Dexia SAa	143,158		1,118,525
Fortisa	581,932		2,252,343
Groupe Bruxelles Lambert SA	13,144		1,037,592
KBC Groep NVa	39,190		831,202
Mobistar SA	4,712		298,716
Solvay SA	15,272		1,489,000
UCB SA	11,222		369,112
Umicore	30,070		781,014
			12,033,397
DENMARK – 0.40%
Carlsberg A/S Class B	25,916		1,788,808
Danske Bank A/Sa	115,134		2,384,079
H. Lundbeck A/S	5,828		112,358
Trygvesta A/S	5,146		344,906
			4,630,151

SCHEDULES OF INVESTMENTS 83

Schedule of Investments (Continued)

iSHARES^® MSCI EAFE VALUE INDEX FUND

July 31, 2009

Security	Shares	Value
FINLAND – 1.33%
Elisa OYJ	28,892	$	527,176
Fortum OYJ	108,004		2,488,243
Kesko OYJ Class B	19,034		499,231
Metso OYJ	35,712		748,828
Neste Oil OYJ	35,248		495,731
Nokia OYJ	294,686		3,902,169
Orion OYJ Class B	22,886		399,094
Outokumpu OYJ	30,814		600,690
Pohjola Bank PLC	36,643		379,239
Rautaruukki OYJ	19,530		420,314
Sampo OYJ Class A	48,980		1,017,316
Sanoma OYJ	18,538		316,438
Stora Enso OYJ Class Ra	167,338		1,058,106
UPM-Kymmene OYJ	143,220		1,492,419
Wartsila OYJ Class B	22,878		814,126
			15,159,120
FRANCE – 13.38%
Accor SA	20,770		881,928
Air France-KLMa	32,054		401,321
Alcatel-Lucenta	273,110		751,171
ArcelorMittal	214,086		7,663,891
Atos Origin SAa	9,362		424,536
AXA	393,142		8,265,902
BNP Paribas	208,506		15,120,420
Bouygues SA	55,676		2,358,962
Carrefour SA	58,404		2,727,093
Casino Guichard-Perrachon SA	14,074		964,747
CNP Assurances SA	9,052		822,754
Compagnie de Saint-Gobainb	93,310		3,763,658
Compagnie Generale de Geophysique-Veritasa	20,088		404,982
Compagnie Generale des Etablissements Michelin Class B	18,848		1,353,724
Credit Agricole SA	223,448		3,172,686
Eiffage SA	9,672		641,401
Eurazeo	5,766		260,693
European Aeronautic Defence and Space Co.b	92,008		1,745,345
Fonciere des Regions	3,968		346,033
France Telecom SA	450,864		11,192,610

Security	Shares	Value
GDF Suez	301,630	$	11,462,781
Gecina SA	3,941		322,725
Imerys SA	9,520		504,315
Klépierre	21,018		597,753
Lafarge SA	46,972		3,375,012
Lagardere SCA	31,160		1,157,661
M6-Metropole Television	8,990		178,757
Natixisa	247,256		640,450
PagesJaunes Groupe SA	33,575		360,339
PPR SA	19,282		2,137,484
PSA Peugeot Citroen SAa	40,672		1,227,063
Renault SAa	48,484		2,056,647
Sanofi-Aventis	262,012		17,072,647
Schneider Electric SA	57,660		5,210,583
SCOR SE	42,904		1,024,633
Societe BIC	2,046		122,019
Societe Generale	116,808		7,460,485
Societe Television Francaise 1	26,788		412,828
STMicroelectronics NV	73,656		559,618
Technip SA	24,862		1,495,224
Thales SA	18,486		777,345
Total SA	185,256		10,219,583
Unibail-Rodamco SE	20,786		3,612,942
Vallourec SA	14,012		1,833,587
Veolia Environnement	90,396		3,092,475
Vinci SA	103,540		5,242,008
Vivendi SA	292,454		7,473,646
			152,894,467
GERMANY – 9.28%
Allianz SE Registered	113,336		11,119,202
BASF SE	234,670		11,697,851
Celesio AG	14,632		387,715
Commerzbank AGa,b	180,854		1,410,232
Daimler AG Registered	114,452		5,268,723
Deutsche Bank AG Registered	91,636		5,896,930
Deutsche Lufthansa AG Registered	50,282		675,804
Deutsche Post AG Registered	219,170		3,450,637
Deutsche Postbank AGa	24,986		686,515
Deutsche Telekom AG Registered	703,142		8,961,947
E.ON AG	479,570		18,058,419

84 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI EAFE VALUE INDEX FUND

July 31, 2009

Security	Shares	Value
Hannover Rueckversicherung AG Registereda	8,246	$	333,771
MAN SE	11,098		763,108
METRO AG	16,616		957,135
Muenchener Rueckversicherungs- Gesellschaft AG Registered	51,770		7,786,679
RWE AG	102,176		8,582,956
Salzgitter AG	10,230		1,031,930
Siemens AG Registered	202,802		16,101,262
ThyssenKrupp AG	85,436		2,616,341
TUI AGa,b	44,392		284,474
			106,071,631
GREECE – 0.08%
National Bank of Greece SA SP ADR	155,000		919,150
			919,150
HONG KONG – 2.54%
Bank of East Asia Ltd.	210,960		702,288
BOC Hong Kong (Holdings) Ltd.b	961,000		2,048,467
Cheung Kong (Holdings) Ltd.	186,000		2,402,384
Cheung Kong Infrastructure Holdings Ltd.	124,000		451,997
Chinese Estates Holdings Ltd.	186,000		326,398
CLP Holdings Ltd.	434,000		2,951,181
Hang Lung Group Ltd.	186,000		963,594
Hang Seng Bank Ltd.	186,000		3,021,581
Hongkong Electric Holdings Ltd.	372,000		2,051,987
Hopewell Holdings Ltd.	155,000		505,997
Hutchison Whampoa Ltd.	434,000		3,250,779
Hysan Development Co. Ltd.	186,000		508,797
Link REIT (The)	558,000		1,267,192
Mongolia Energy Corp. Ltd.a	310,000		119,199
MTR Corp. Ltd.	186,000		674,396
New World Development Co. Ltd.b	558,000		1,331,991
Noble Group Ltd.	248,000		359,433
NWS Holdings Ltd.	186,000		358,558
Orient Overseas International Ltd.	62,000		347,198
Shangri-La Asia Ltd.	124,000		197,759
Sino Land Co. Ltd.	372,000		759,355
Swire Pacific Ltd. Class Ab	155,000		1,740,989
Television Broadcasts Ltd.	62,000		271,198
Wharf (Holdings) Ltd. (The)	375,750		1,767,226

Security	Shares	Value
Wing Hang Bank Ltd.	31,000	$	297,398
Yue Yuen Industrial Holdings Ltd.	124,000		336,798
			29,014,140
IRELAND – 0.35%
Anglo Irish Bank Corp. Ltd.c	246,432		35
CRH PLC	169,756		4,031,249
			4,031,284
ITALY – 5.62%
A2A SpA	136,152		246,692
Alleanza Assicurazioni SpA	87,628		655,338
Assicurazioni Generali SpA	253,704		5,751,425
Banca Monte dei Paschi di Siena SpA	411,872		767,870
Banca Popolare di Milano Scrl	114,762		691,084
Banco Popolare SpAa	173,352		1,393,515
Enel SpA	1,667,847		9,015,000
Eni SpA	650,876		15,068,988
Exor SpA	15,603		261,472
Fiat SpAa	72,974		804,910
Finmeccanica SpA	104,222		1,572,174
Fondiaria-Sai SpA	17,546		292,291
Intesa Sanpaolo SpAa	1,920,303		7,112,556
Italcementi SpA	27,342		355,661
Mediaset SpA	187,116		1,125,466
Mediobanca SpA	46,810		653,694
Parmalat SpA	436,418		1,084,637
Pirelli & C. SpAa,b	887,608		368,084
Telecom Italia SpA	2,556,260		3,979,303
Terna SpA	275,714		966,484
UniCredit SpAa	3,648,400		10,629,527
Unione di Banche Italiane ScpA	89,714		1,248,390
Unipol Gruppo Finanziario SpAa	109,678		136,525
			64,181,086
JAPAN – 22.88%
Acom Co. Ltd.b	10,036		211,906
Advantest Corp.	31,000		672,462
AEON Co. Ltd.	130,200		1,258,301
AEON Credit Service Co. Ltd.	24,300		275,176
Aioi Insurance Co. Ltd.	124,000		586,165
Aisin Seiki Co. Ltd.	43,400		1,110,132
Ajinomoto Co. Inc.	124,000		1,182,751
Alfresa Holdings Corp.	6,200		312,621

SCHEDULES OF INVESTMENTS 85

Schedule of Investments (Continued)

iSHARES^® MSCI EAFE VALUE INDEX FUND

July 31, 2009

Security	Shares	Value
All Nippon Airways Co. Ltd.	62,000	$	171,942
Amada Co. Ltd.	62,000		392,079
Aozora Bank Ltd.a	186,000		255,959
Asahi Glass Co. Ltd.	248,000		2,141,457
Astellas Pharma Inc.	80,600		3,056,526
Bank of Kyoto Ltd. (The)	91,000		820,190
Bank of Yokohama Ltd. (The)	310,000		1,670,571
Bridgestone Corp.	80,100		1,383,312
Brother Industries Ltd.	55,800		499,999
Canon Inc.	260,400		9,656,095
Canon Marketing Japan Inc.	24,800		392,861
Casio Computer Co. Ltd.	49,600		404,845
Chiba Bank Ltd. (The)	124,000		799,790
Chubu Electric Power Co. Inc.	117,800		2,821,409
Chuo Mitsui Trust Holdings Inc.	248,000		859,709
Citizen Watch Co. Ltd.	86,800		468,672
Coca-Cola West Co. Ltd.	12,400		241,370
Cosmo Oil Co. Ltd.	124,000		368,633
Credit Saison Co. Ltd.	43,400		563,500
Dai Nippon Printing Co. Ltd.	186,000		2,708,083
Daicel Chemical Industries Ltd.	62,000		392,731
Daiichi Sankyo Co. Ltd.	155,000		2,800,567
Dainippon Pharmaceutical Co. Ltd.	18,600		171,942
Daito Trust Construction Co. Ltd.	12,400		607,007
Daiwa House Industry Co. Ltd.	124,000		1,275,235
Daiwa Securities Group Inc.	124,000		729,450
Denki Kagaku Kogyo Kabushiki Kaisha	62,000		200,599
Dentsu Inc.	31,000		650,643
DIC Corp.	124,000		173,244
Eisai Co. Ltd.	68,200		2,414,349
Electric Power Development Co. Ltd.	31,020		915,659
Fuji Electric Holdings Co. Ltd.	124,000		216,230
Fuji Heavy Industries Ltd.	62,000		248,795
Fuji Media Holdings Inc.	186		295,623
FUJIFILM Holdings Corp.	117,800		3,823,751
Fujitsu Ltd.	124,000		810,211
Fukuoka Financial Group Inc.	248,000		1,081,149
Gunma Bank Ltd.	124,000		716,424
Hakuhodo DY Holdings Inc.	3,100		169,337
Hino Motors Ltd.	62,000		205,809

Security	Shares	Value
Hitachi Chemical Co. Ltd.	24,800	$	504,102
Hitachi Ltd.	806,000		2,692,452
Hokkaido Electric Power Co. Inc.	49,600		958,185
Hokuhoku Financial Group Inc.	62,000		140,680
Honda Motor Co. Ltd.	210,800		6,753,926
Idemitsu Kosan Co. Ltd.	6,200		515,174
Isetan Mitsukoshi Holdings Ltd.	37,200		391,949
Isuzu Motors Ltd.	310,000		550,344
ITOCHU Corp.	248,000		1,844,467
Itochu Techno-Solutions Corp.	12,400		371,238
J. Front Retailing Co. Ltd.	62,000		342,581
Japan Petroleum Exploration Co. Ltd.	6,200		304,155
Japan Prime Realty Investment Corp.	124		265,338
Japan Real Estate Investment Corp.	124		1,031,651
Japan Retail Fund Investment Corp.	62		309,365
JFE Holdings Inc.	124,000		4,962,866
JS Group Corp.	55,800		860,491
JTEKT Corp.	31,000		348,768
Kaneka Corp.	124,000		857,104
Kansai Electric Power Co. Inc. (The)	74,400		1,652,986
Kansai Paint Co. Ltd.	62,000		475,445
Kawasaki Kisen Kaisha Ltd.	157,000		588,781
KDDI Corp.	434		2,288,650
Keio Corp.	120,000		716,004
Keisei Electric Railway Co. Ltd.	62,000		384,915
Kinden Corp.	22,000		183,959
Kintetsu Corp.	62,000		287,221
Kirin Holdings Co. Ltd.	186,000		2,766,700
Konami Corp.	18,600		393,708
Konica Minolta Holdings Inc.	62,000		674,090
Kubota Corp.	310,000		2,774,515
Kuraray Co. Ltd.	31,000		349,420
Kyocera Corp.	24,800		1,985,146
Kyushu Electric Power Co. Inc.	93,000		1,992,962
Leopalace21 Corp.	31,000		264,100
Mabuchi Motor Co. Ltd.	6,200		309,365
Makita Corp.	31,000		765,271

86 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI EAFE VALUE INDEX FUND

July 31, 2009

Security	Shares	Value
Marubeni Corp.	372,000	$	1,707,695
Marui Group Co. Ltd.	86,800		619,121
Mediceo Paltac Holdings Co. Ltd.	24,800		308,193
Minebea Co. Ltd.	62,000		250,748
Mitsubishi Corp.	328,600		6,524,019
Mitsubishi Gas Chemical Co. Inc.	62,000		379,705
Mitsubishi Rayon Co. Ltd.	124,000		337,371
Mitsubishi Tanabe Pharma Corp.	62,000		734,009
Mitsubishi UFJ Financial Group Inc.	1,531,400		9,105,230
Mitsubishi UFJ Lease & Finance Co. Ltd.	12,400		377,751
Mitsui & Co. Ltd.	434,000		5,411,608
Mitsui Chemicals Inc.	124,000		451,999
Mitsui Mining & Smelting Co. Ltd.a	124,000		339,976
Mitsui O.S.K. Lines Ltd.	310,000		1,878,985
Mitsumi Electric Co. Ltd.	6,200		152,077
Mizhuo Securities Co. Ltd.	82,000		298,041
Mizuho Financial Group Inc.	3,075,200		6,945,407
Murata Manufacturing Co. Ltd.	55,800		2,719,807
Namco Bandai Holdings Inc.	55,800		623,680
Nippon Building Fund Inc.	124		1,107,201
Nippon Express Co. Ltd.	248,000		1,133,253
Nippon Mining Holdings Inc.	155,000		732,707
Nippon Oil Corp.	310,000		1,634,750
Nippon Paper Group Inc.	18,600		476,748
Nippon Steel Corp.	806,000		3,208,929
Nippon Telegraph and Telephone Corp.	130,200		5,347,781
Nippon Yusen Kabushiki Kaisha	248,000		1,055,097
Nishi-Nippon City Bank Ltd. (The)	58,000		146,226
Nissan Motor Co. Ltd.	328,600		2,378,333
Nisshin Seifun Group Inc.	31,200		377,238
Nitto Denko Corp.	37,200		1,191,869
NOK Corp.	24,800		302,461
Nomura Holdings Inc.	632,400		5,507,218
Nomura Real Estate Office Fund Inc.	62		405,105
NSK Ltd.	124,000		668,228
NTN Corp.	62,000		249,446
NTT DoCoMo Inc.	3,968		5,718,889
Olympus Corp.	12,400		354,304

Security	Shares	Value
Ono Pharmaceutical Co. Ltd.	18,600	$	822,585
ORIX Corp.	14,260		897,289
Osaka Gas Co. Ltd.	248,000		820,631
Promise Co. Ltd.b	21,700		227,269
Ricoh Co. Ltd.	186,000		2,426,724
Rohm Co. Ltd.	24,800		1,834,046
Sankyo Co. Ltd.	6,200		367,330
Sapporo Hokuyo Holdings Inc.a	124,000		415,526
SBI Holdings Inc.	4,154		834,771
Sega Sammy Holdings Inc.	43,400		568,971
Seiko Epson Corp.	31,000		474,143
Sekisui Chemical Co. Ltd.	124,000		728,147
Sekisui House Ltd.	124,000		1,161,910
77 Bank Ltd. (The)	124,000		729,450
Sharp Corp.	62,000		685,813
Shimizu Corp.	124,000		506,707
Shinsei Bank Ltd.a	310,000		455,906
Showa Denko K.K.	248,000		458,511
Showa Shell Sekiyu K.K.	51,200		569,576
Sojitz Corp.	316,200		657,677
Sompo Japan Insurance Inc.	248,000		1,636,052
Sumitomo Corp.	279,000		2,746,184
Sumitomo Electric Industries Ltd.	93,000		1,151,815
Sumitomo Heavy Industries Ltd.	124,000		595,283
Sumitomo Mitsui Financial Group Inc.	223,200		9,495,877
Sumitomo Rubber Industries Inc.	55,800		481,828
Sumitomo Trust and Banking Co. Ltd. (The)	372,000		2,024,224
Suzuken Co. Ltd.	12,400		371,889
T&D Holdings Inc.	24,800		724,240
Taiheiyo Cement Corp.	186,000		279,405
Taisei Corp.	310,000		700,142
Taisho Pharmaceutical Co. Ltd.	62,000		1,189,264
Takeda Pharmaceutical Co. Ltd.	192,200		7,732,822
TDK Corp.	31,000		1,621,724
Teijin Ltd.	186,000		586,165
Tokyo Electric Power Co. Inc. (The)	297,600		7,581,070
Tokyo Steel Manufacturing Co. Ltd.	31,000		341,930
Tokyo Tatemono Co. Ltd.	62,000		302,201

SCHEDULES OF INVESTMENTS 87

Schedule of Investments (Continued)

iSHARES^® MSCI EAFE VALUE INDEX FUND

July 31, 2009

Security	Shares	Value
Tokyu Land Corp.	124,000	$	497,589
TonenGeneral Sekiyu K.K.	62,000		588,770
Toppan Printing Co. Ltd.	124,000		1,258,301
TOTO Ltd.	62,000		422,690
Toyo Seikan Kaisha Ltd.	37,200		793,277
Toyota Industries Corp.	55,800		1,500,583
Toyota Motor Corp.	688,200		28,845,191
Toyota Tsusho Corp.	37,200		568,190
UNY Co. Ltd.	18,600		150,840
USS Co. Ltd.	3,720		231,340
West Japan Railway Co.	271		859,730
Yamaguchi Financial Group Inc.	62,000		843,427
Yamaha Corp.	43,400		573,074
Yamaha Motor Co. Ltd.	43,400		537,058
Yamato Holdings Co. Ltd.	62,000		916,372
Yokogawa Electric Corp.	49,600		386,609
			261,382,688
NETHERLANDS – 2.20%
Aegon NV	365,056		2,669,565
Akzo Nobel NV	61,628		3,363,427
ASML Holding NV	31,186		812,210
Corio NV	11,040		608,548
Heineken Holding NV	9,424		322,665
ING Groep NV CVA	502,324		6,408,104
Koninklijke Boskalis Westminster NV	7,006		174,270
Koninklijke DSM NV	32,674		1,161,795
Koninklijke Philips Electronics NV	253,835		5,757,993
Reed Elsevier NV	55,242		575,960
SBM Offshore NV	35,643		678,151
TNT NV	83,328		1,968,774
Wolters Kluwer NV	32,240		630,774
			25,132,236
NEW ZEALAND – 0.13%
Fletcher Building Ltd.	116,932		552,732
Telecom Corp. of New Zealand Ltd.	483,228		884,410
			1,437,142
NORWAY – 0.82%
DnB NOR ASAa	196,664		1,704,066
Norsk Hydro ASAa	81,840		478,604
Orkla ASA	206,708		1,629,917

Security	Shares	Value
Seadrill Ltd.	23,126	$	369,661
StatoilHydro ASA	194,122		4,130,993
Telenor ASAa	50,902		467,519
Yara International ASA	18,476		570,256
			9,351,016
PORTUGAL – 0.32%
Banco Comercial Portugues SA Registered	737,190		784,909
Banco Espirito Santo SA Registered	150,408		934,209
BRISA – Auto-estradas de Portugal SA	38,734		319,057
CIMPOR – Cimentos de Portugal SGPS SA	86,862		657,614
Galp Energia SGPS SA Class B	12,400		161,385
Portugal Telecom SGPS SA Registered	74,710		752,880
			3,610,054
SINGAPORE – 1.45%
Ascendas Real Estate Investment Trustb	399,546		471,016
CapitaLand Ltd.	682,000		1,806,623
CapitaMall Trust Management Ltd.	558,800		612,256
COSCO Corp. (Singapore) Ltd.	124,000		112,645
DBS Group Holdings Ltd.	468,000		4,504,587
Fraser and Neave Ltd.	186,000		535,280
Golden Agri-Resources Ltd.	1,163,687		342,961
Jardine Cycle & Carriage Ltd.	62,000		1,014,667
Neptune Orient Lines Ltd.b	327,750		377,286
SembCorp Industries Ltd.	186,000		414,036
Singapore Airlines Ltd.	124,800		1,168,337
Singapore Telecommunications Ltd.	558,000		1,354,322
United Overseas Bank Ltd.	310,000		3,800,700
			16,514,716
SPAIN – 5.53%
Acerinox SA	22,568		445,381
Banco Bilbao Vizcaya Argentaria SA	914,624		14,938,078
Banco de Sabadell SAb	252,898		1,677,996
Banco de Valencia SA	10,912		105,818

88 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI EAFE VALUE INDEX FUND

July 31, 2009

Security	Shares	Value
Banco Popular Espanol SAb	142,480	$	1,279,677
Banco Santander SA	2,013,921		29,009,203
Criteria CaixaCorp SA	100,936		482,969
Fomento de Construcciones y Contratas SA	7,812		311,774
Gas Natural SDG SA	60,388		1,124,126
Gestevision Telecinco SA	36,084		409,265
Grupo Ferrovial SA	17,484		597,389
Iberdrola SA	915,616		7,814,650
Iberia Lineas Aereas de Espana SAa	123,876		275,029
Repsol YPF SA	188,170		4,345,814
Sacyr Vallehermoso SA	24,366		388,285
			63,205,454
SWEDEN – 2.16%
Assa Abloy AB Class B	30,070		491,171
Holmen AB Class B	21,886		596,320
Nordea Bank AB	810,278		7,785,467
Skandinaviska Enskilda Banken AB Class Aa	220,348		1,218,896
Skanska AB Class B	104,346		1,450,185
SSAB AB Class A	53,630		695,652
SSAB AB Class B	29,884		353,794
Svenska Cellulosa AB Class B	151,034		1,922,831
Svenska Handelsbanken AB Class A	113,150		2,741,270
Swedbank AB Class Aa	88,660		678,461
Tele2 AB Class B	50,530		673,474
Telefonaktiebolaget LM Ericsson AB Class B	266,414		2,589,064
TeliaSonera AB	546,778		3,474,918
			24,671,503
SWITZERLAND – 1.26%
Baloise Holding Registered	11,966		947,274
BKW FMB Energie AG	930		71,462
Lindt & Spruengli AG Participation Certificates	124		244,256
Pargesa Holding SA Bearer	5,642		411,257
Swiss Life Holding AG Registereda	9,114		906,954
Swiss Reinsurance Co. Registered	88,040		3,353,905
Swisscom AG Registered	4,030		1,313,377

Security	Shares	Value
Zurich Financial Services AG Registered	36,704	$	7,161,756
			14,410,241
UNITED KINGDOM – 20.48%
Anglo American PLC	222,270		7,111,863
Antofagasta PLC	47,430		595,243
Associated British Foods PLC	36,828		486,000
AstraZeneca PLC	235,166		10,928,055
Aviva PLC	667,926		3,883,929
Balfour Beatty PLC	93,806		475,491
Banco Santander SA	36,062		512,062
Barclays PLCd	2,745,174		13,757,935
Berkeley Group Holdings PLC (The) Unitsa	11,222		153,672
BP PLC	4,657,936		38,394,576
British Land Co. PLCb	233,395		1,683,163
BT Group PLC	1,950,109		4,094,580
Carnival PLC	44,206		1,278,124
FirstGroup PLC	99,572		547,225
Friends Provident Group PLC	584,908		680,237
Hammerson PLC	156,674		895,461
Home Retail Group PLC	229,710		1,195,790
HSBC Holdings PLC	4,278,310		42,964,613
International Power PLC	144,150		609,994
Investec PLC	97,588		653,616
Kazakhmys PLC	54,560		774,724
Kingfisher PLC	303,800		1,071,526
Ladbrokes PLC	182,218		530,168
Land Securities Group PLC	201,635		1,785,058
Legal & General Group PLC	1,589,815		1,698,693
Liberty International PLC	34,658		250,516
Lloyds Banking Group PLC	4,161,192		5,863,837
Man Group PLC	428,606		1,966,487
Marks & Spencer Group PLC	200,322		1,148,249
Old Mutual PLC	1,298,342		2,062,484
Pearson PLC	209,870		2,412,915
Prudential PLC	628,680		4,671,918
Rexam PLC	153,574		600,862
Royal Bank of Scotland Group PLCa	2,149,416		1,598,011
Royal Dutch Shell PLC Class A	880,896		22,957,385
Royal Dutch Shell PLC Class B	669,290		17,242,911
RSA Insurance Group PLC	782,936		1,643,256

SCHEDULES OF INVESTMENTS 89

Schedule of Investments (Continued)

iSHARES^® MSCI EAFE VALUE INDEX FUND

July 31, 2009

Security	Shares	Value
Schroders PLC	26,660	$	432,038
SEGRO PLC	171,318		783,894
Severn Trent PLC	28,396		455,934
Standard Life PLC	323,392		1,060,476
Tomkins PLC	240,498		705,716
United Utilities Group PLC	168,397		1,258,390
Vodafone Group PLC	13,052,550		26,551,262
Wolseley PLCa	68,200		1,513,945
WPP PLC	261,640		2,002,886
			233,945,170
TOTAL COMMON STOCKS
(Cost: $1,297,359,526)			1,131,572,619
PREFERRED STOCKS – 0.60%
GERMANY – 0.40%
Bayerische Motoren Werke AG	13,578		396,555
Porsche Automobil Holding SE	23,126		1,499,672
RWE AG NVS	9,052		638,850
Volkswagen AG	26,102		2,034,966
			4,570,043
ITALY – 0.20%
Intesa Sanpaolo SpA RNC	208,155		584,321
Telecom Italia SpA RNC	1,530,222		1,714,968
			2,299,289
TOTAL PREFERRED STOCKS
(Cost: $8,096,533)			6,869,332
RIGHTS – 0.01%
BELGIUM – 0.00%
Fortisa,b,c	355,470		50
			50
UNITED KINGDOM – 0.01%
Rexam PLCa	55,845		79,621
			79,621
TOTAL RIGHTS
(Cost: $0)			79,671

Security	Shares	Value
WARRANTS – 0.00%
ITALY – 0.00%
Unione di Banche Italiane ScpA (Expires 6/30/11)a	142,013	$	10,329
			10,329
SINGAPORE – 0.00%
Golden Agri-Resources Ltd. (Expires 7/23/12)a	68,562		5,943
			5,943
TOTAL WARRANTS
(Cost: $0)			16,272
SHORT-TERM INVESTMENTS – 0.67%
MONEY MARKET FUNDS – 0.67%
Barclays Global Investors Funds Institutional Money Market Fund, SL Agency Shares 0.33%d,e,f	6,523,502		6,523,502
Barclays Global Investors Funds Prime Money Market Fund, SL Agency Shares 0.26%d,e,f	903,312		903,312
Barclays Global Investors Funds Treasury Money Market Fund, SL Agency Shares 0.12%d,e	235,419		235,419
			7,662,233
TOTAL SHORT-TERM INVESTMENTS
(Cost: $7,662,233)			7,662,233

90 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI EAFE VALUE INDEX FUND

July 31, 2009

	Value
TOTAL INVESTMENTS IN SECURITIES – 100.33% (Cost: $1,313,118,292)	$	1,146,200,127
Other Assets, Less Liabilities – (0.33)%		(3,799,263	)
NET ASSETS – 100.00%	$	1,142,400,864

NVS – Non-Voting 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 using Level 3 inputs. 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 All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 91

Schedule of Investments

iSHARES^® MSCI EAFE SMALL CAP INDEX FUND

July 31, 2009

Security	Shares	Value
COMMON STOCKS – 99.50%
AUSTRALIA – 6.99%
ABB Grain Ltd.	93,338	$	691,385
Adelaide Brighton Ltd.	278,893		577,326
Andean Resources Ltd.a	186,440		300,694
Ansell Ltd.	103,132		792,226
APN News & Media Ltd.	325,031		503,950
Aquarius Platinum Ltd.	124,254		513,394
Atlas Iron Ltd.a	80,663		133,113
Austar United Communications Ltd.a,b	440,199		376,938
Australian Pipeline Trust	360,962		846,242
Australian Worldwide Exploration Ltd.a,b	293,171		650,753
AWB Ltd.	258,389		283,551
Beach Petroleum Ltd.	641,920		453,611
Bradken Ltd.	58,410		256,392
Carnarvon Petroleum Ltd.a	131,452		73,766
Centennial Coal Co. Ltd.	197,709		491,452
Challenger Financial Services Group Ltd.	206,323		461,407
Crane Group Ltd.	64,841		592,422
David Jones Ltd.	230,041		982,997
Diversified Utility & Energy Trusts Group	518,633		709,267
Dominion Mining Ltd.	65,254		223,506
Downer EDI Ltd.	197,001		1,062,911
Energy World Corp. Ltd.a	319,957		170,238
Felix Resources Ltd.	30,267		450,408
Flight Centre Ltd.b	33,158		267,389
Gindalbie Metals Ltd.a	222,902		162,146
Goodman Group	1,205,193		510,988
Gunns Ltd.	368,696		294,255
Healthscope Ltd.	161,011		582,276
Iluka Resources Ltd.a	105,315		275,794
Independence Group NL	85,196		375,387
Infigen Energy	568,052		609,203
ING Office Fund	958,809		386,596
IOOF Holdings Ltd.	109,858		433,820
JB Hi-Fi Ltd.	61,360		862,097
Kagara Ltd.a	258,951		232,501
Karoon Gas Australia Ltd.a	52,923		496,732

Security	Shares	Value
Kingsgate Consolidated Ltd.a	75,815	$	438,050
Linc Energy Ltd.a	123,959		159,733
Lynas Corp. Ltd.a	354,531		131,159
Macarthur Coal Ltd.	68,558		446,846
Macmahon Holdings Ltd.	515,188		192,736
Minara Resources Ltd.a	109,091		100,669
Mincor Resources NL	153,639		281,001
Mount Gibson Iron Ltd.a	263,789		262,065
Murchison Metals Ltd.a	136,408		216,599
Nexus Energy Ltd.a	410,144		119,341
Pacific Brands Ltd.	606,882		600,392
PanAust Ltd.a	965,358		329,046
Panoramic Resources Ltd.	112,867		258,976
Publishing and Broadcasting Ltd.	274,114		624,404
Riversdale Mining Ltd.a	70,564		387,178
Roc Oil Co. Ltd.a	460,318		283,187
Seven Network Ltd.	73,396		389,293
Sigma Pharmaceuticals Ltd.	616,373		663,586
Silex Systems Ltd.a	49,442		284,848
Sino Gold Mining Ltd.a,b	118,003		518,958
Straits Resources Ltd.a	114,519		220,877
Sundance Resources Ltd.a	999,460		149,562
Timbercorp Ltd.c	652,266		54
TOWER Australia Group Ltd.	236,590		487,789
Transfield Services Ltd.	132,986		309,562
Transpacific Industries Group Ltd.b	74,142		74,582
United Group Ltd.	62,599		625,021
West Australian Newspapers Holdings Ltd.	95,108		476,780
Western Areas NLa	61,360		310,151
			26,429,578
AUSTRIA – 1.84%
Andritz AG	15,222		663,615
Atrium European Real Estate Ltd.a	97,114		505,298
bwin Interactive Entertainment AGa	11,251		457,797
conwert Immobilien Invest SEa	65,077		580,334
Immoeast AGa	163,961		450,964
IMMOFINANZ AGa,b	181,012		377,246
Intercell AGa	20,532		748,981
Oesterreichische Post AG	22,302		680,750
RHI AGa	28,025		590,027

92 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI EAFE SMALL CAP INDEX FUND

July 31, 2009

Security	Shares	Value
Schoeller-Bleckmann Oilfield Equipment AG	4,484	$	158,930
Sparkassen Immobilien AGa,b	146,924		885,281
Wienerberger AGa	35,636		590,613
Zumtobel AGa	23,367		250,121
			6,939,957
BELGIUM – 1.77%
Ackermans & van Haaren NV	12,874		898,004
Agfa-Gevaert NVa	81,420		250,490
Barco NVa	9,395		415,177
Cofinimmo SA	12,160		1,503,314
Compagnie Maritime Belge SA	6,549		211,509
EVS Broadcast Equipment SA	4,817		277,953
NV Bekaert SA	5,015		621,700
Nyrstar NVa	27,613		239,979
Omega Pharma SA	11,684		366,086
Option NVa,b	39,722		107,563
RHJ International SAa	76,537		493,722
SIPEF NV	5,216		237,379
Telenet Group Holding NVa	16,107		367,883
Tessenderlo Chemie NV	20,179		704,634
			6,695,393
DENMARK – 1.60%
ALK-Abello A/S	5,310		405,440
Bang & Olufsen A/S Class B	26,373		219,949
D/S Norden A/S	9,440		334,777
Danisco A/S	16,461		800,820
East Asiatic Co. Ltd. A/S	13,334		487,472
FLSmidth & Co. A/Sa	15,399		665,589
Formuepleje Epikur A/Sa	5,310		236,591
Genmab A/Sa	14,101		561,156
GN Store Nord A/Sa	119,593		573,844
Neurosearch A/Sa	8,555		188,144
NKT Holding A/Sa	11,269		427,535
Simcorp A/S	2,950		503,851
Sydbank A/Sa	25,193		633,201
			6,038,369
FINLAND – 1.41%
Alma Media Corp.b	76,818		595,731
Amer Sports OYJ Class A	55,224		528,483
Citycon OYJ	146,379		381,853
Huhtamaki OYJ	56,994		639,962

Security	Shares	Value
Konecranes OYJ	27,435	$	744,080
Outotec OYJ	18,703		440,964
Tieto OYJ	39,412		671,634
Uponor OYJ	42,657		579,974
YIT OYJb	56,227		734,183
			5,316,864
FRANCE – 4.27%
Altran Technologies SAa	66,316		194,526
Arkema	22,479		641,216
Beneteau SA	32,391		443,426
BOURBON SAb	19,470		813,478
Club Mediterranee SAa	21,997		318,879
Derichebourg	67,614		197,471
Etablissements Maurel et Prom	40,533		698,782
Eurofins Scientific SAb	5,900		332,874
GAGFAH SA	37,583		313,839
Groupe Eurotunnel SA	72,216		426,123
Groupe Steria SCA	28,261		678,535
Haulotte Groupb	24,426		191,157
Havas SA	190,157		547,817
IMS International Metal Servicea	17,700		283,313
Ingenico SA	23,246		484,139
Nexans SA	10,856		726,613
Nexity	12,449		426,767
NicOx SAa	24,084		298,428
Orpea SAa	15,989		755,765
Remy Cointreau Group	19,411		764,229
Rhodia SAa,b	45,902		497,778
Saft Groupe SA	15,812		613,566
SEB SA	18,585		882,424
Sechilienne-Sidec	13,806		529,071
Societe Immobiliere de Location pour l’Industrie et le Commerce	8,555		852,658
Soitec SAa	51,271		446,822
SR Teleperformance SA	34,574		1,088,184
Theolia SAa	11,564		60,497
Ubisoft Entertainment SAa	24,426		415,040
Valeo SAa	21,653		570,993
Zodiac Aerospaceb	16,933		650,343
			16,144,753

SCHEDULES OF INVESTMENTS 93

Schedule of Investments (Continued)

iSHARES^® MSCI EAFE SMALL CAP INDEX FUND

July 31, 2009

Security	Shares	Value
GERMANY – 5.35%
AIXTRON AG	40,710	$	663,741
Aurubis AG	16,874		584,681
Bilfinger Berger AG	15,399		803,415
Conergy AGa	162,545		156,705
Demag Cranes AG	13,924		343,489
DEUTZ AGa	57,702		274,872
Douglas Holding AG	23,954		948,185
ElringKlinger AG	19,588		373,796
Freenet AGa	41,890		513,719
Gerresheimer AG	14,101		314,069
Gildemeister AG	30,267		323,549
Heidelberger Druckmaschinen AGa,b	44,958		330,169
Infineon Technologies AGa,b	253,759		1,039,726
IVG Immobilien AGa	35,400		244,417
Kloeckner & Co. SEa	23,305		596,714
Kontron AG	42,067		481,299
KUKA AGa,b	21,594		321,150
LANXESS AG	36,167		1,047,051
LEONI AG	18,172		352,700
MLP AGb	33,925		459,328
MorphoSys AGa	20,652		477,839
MTU Aero Engines Holding AG	22,243		804,143
Nordex AGa	12,176		195,584
Pfleiderer AG Registereda	30,267		252,317
Praktiker Bau-und Heimwerkermaerkte Holding AG	31,565		314,602
Premiere AGa	146,084		608,905
Q-Cells SEa,b	22,243		398,287
Rheinmetall AG	14,514		702,918
RHON KLINIKUM AGb	38,114		872,683
SGL Carbon SEa,b	23,836		780,292
Software AG	10,207		759,726
Solon SEa,b	7,552		108,782
Stada Arzneimittel AG	23,659		571,565
Symrise AG	46,374		742,281
Tognum AG	33,925		470,390
Vossloh AG	5,605		646,685
Wincor Nixdorf AG	17,464		932,446
Wirecard AG	39,722		425,185
			20,237,405

Security	Shares	Value
HONG KONG – 2.19%
AAC Acoustic Technologies Holdings Inc.	354,000	$	341,665
APAC Resources Ltd.a	1,180,000		132,464
Big Media Group Ltd.a	5,900,000		103,535
C C Land Holdings Ltd.	354,000		265,841
Cafe de Coral Holdings Ltd.	590,000		1,245,463
Champion REITb	1,239,000		495,597
China WindPower Group Ltd.a	1,770,000		214,682
Daphne International Holdings Ltd.	472,000		317,304
First Pacific Co. Ltd.b	1,534,000		985,712
Galaxy Entertainment Group Ltd.a	354,000		107,798
Giordano International Ltd.b	2,714,000		847,463
Johnson Electric Holdings Ltd.a,b	1,534,000		453,269
Melco International Development Ltd.a,b	413,000		268,049
Midland Holdings Ltd.	354,000		283,655
Pacific Basin Shipping Ltd.	944,000		711,345
Polytec Asset Holdings Ltd.	1,475,000		228,386
Shun Tak Holdings Ltd.	472,000		386,733
Techtronic Industries Co. Ltd.b	590,000		489,507
VTech Holdings Ltd.	59,000		420,610
			8,299,078
IRELAND – 1.57%
Allied Irish Banks PLC	303,201		756,559
Bank of Irelanda	339,014		961,274
C&C Group PLC	135,169		392,854
DCC PLC	44,368		943,541
FBD Holdings PLC	26,373		261,732
Grafton Group PLCa	92,512		443,317
Greencore Group PLC	188,387		285,782
Independent News & Media PLC	300,900		100,678
Irish Life & Permanent PLC	101,684		496,207
Paddy Power PLC	22,184		549,015
Smurfit Kappa Group PLC	42,362		246,241
United Drug PLC	192,980		517,099
			5,954,299
ITALY – 3.15%
Alitalia SpAa,c	44,030		6
Arnoldo Mondadori Editore SpAa	215,763		907,752
Azimut Holding SpA	89,031		946,678

94 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI EAFE SMALL CAP INDEX FUND

July 31, 2009

Security	Shares	Value
Banca Piccolo Credito Valtellinese Scrl	126,319	$	1,244,667
Banca Popolare dell’Etruria e del Lazio Scrl	103,722		647,028
Benetton Group SpA	49,973		423,678
Beni Stabili SpA	567,816		434,309
Buzzi Unicem SpA	42,480		632,976
CIR SpA - Compagnie Industriali Riunitea	346,348		653,076
Danieli SpA RNC	31,506		335,007
Davide Campari-Milano SpA	134,697		1,142,935
ERG SpA	31,565		464,966
Gemina SpAa	344,452		269,568
Gruppo Editoriale L’Espresso SpAa,b	286,091		520,798
Hera SpA	310,635		761,897
Impregilo SpA	139,358		528,019
Recordati SpA	146,851		976,449
Societa Cattolica di Assicurazioni Scrla	30,291		1,001,479
			11,891,288
JAPAN – 29.94%
Access Co. Ltd.a	118		343,482
AnGes MG Inc.a	177		325,571
Awa Bank Ltd. (The)	177,000		1,020,778
Bank of Iwate Ltd. (The)	17,700		1,028,216
Bank of Nagoya Ltd. (The)	118,000		513,178
Calsonic Kansei Corp.	118,000		288,818
Capcom Co. Ltd.	23,600		475,000
Chiyoda Corp.	59,000		498,303
COMSYS Holdings Corp.	64,900		747,207
Culture Convenience Club Co. Ltd.b	41,300		314,972
CyberAgent Inc.	295		277,352
DA Office Investment Corp.	118		364,307
Daifuku Co. Ltd.	59,000		404,097
Daihen Corp.	118,000		391,701
Daikyo Inc.a	177,000		277,042
Dainippon Screen Manufacturing Co. Ltd.a	177,000		639,614
Daio Paper Corp.	59,000		529,293
Daishi Bank Ltd. (The)	295,000		1,165,187
Daiwabo Holdings Co. Ltd.	59,000		230,558
DISCO Corp.b	17,700		922,233

Security	Shares	Value
Don Quijote Co. Ltd.	23,600	$	488,635
Duskin Co. Ltd.	29,500		510,079
eAccess Ltd.	826		637,754
Ebara Corp.a	177,000		568,958
EDION Corp.	47,200		273,695
Exedy Corp.	23,600		554,084
Fuji Machine Manufacturing Co. Ltd.	41,300		509,769
Fuji Soft Inc.	23,600		472,025
Fujikura Ltd.	177,000		931,530
Funai Electric Co. Ltd.	11,800		489,627
Global One Real Estate Investment Corp.	118		904,879
Glory Ltd.	35,400		725,143
GMO Internet Inc.	35,400		148,375
H2O Retailing Corp.	118,000		682,998
Hamamatsu Photonics K.K.	41,300		808,256
Hanwa Co. Ltd.	177,000		715,846
Haseko Corp.a	560,500		529,912
Heiwa Real Estate Co. Ltd.	206,500		718,016
Higo Bank Ltd. (The)	177,000		1,076,559
HIS Co. Ltd.	23,600		480,950
Hitachi Zosen Corp.a	442,500		567,099
Hogy Medical Co. Ltd.	5,900		301,833
Hokkoku Bank Ltd. (The)	236,000		870,172
Hosiden Corp.	41,300		533,197
Hyakugo Bank Ltd. (The)	177,000		868,312
Hyakujushi Bank Ltd. (The)	236,000		1,110,647
Iino Kaiun Kaisha Ltd.	76,700		406,080
Inui Steamship Co. Ltd.	23,600		174,778
Iseki & Co. Ltd.a	118,000		542,928
IT Holdings Corp.	41,300		828,647
Izumi Co. Ltd.	47,200		642,588
Japan Airport Terminal Co. Ltd.	41,300		479,834
Japan Digital Laboratory Co. Ltd.	64,900		801,066
Japan Excellent Inc.	118		570,198
Japan Logistics Fund Inc.	118		793,319
Japan Securities Finance Co. Ltd.	82,600		682,874
Juki Corp.b	177,000		215,683
Juroku Bank Ltd. (The)	177,000		632,176
JVC KENWOOD Holdings Inc.a	542,800		342,119
K.K. DaVinci Advisorsa,b	767		87,984
kabu.com Securities Co. Ltd.	236		271,464

SCHEDULES OF INVESTMENTS 95

Schedule of Investments (Continued)

iSHARES^® MSCI EAFE SMALL CAP INDEX FUND

July 31, 2009

Security	Shares	Value
Kagoshima Bank Ltd. (The)	118,000	$	924,712
Kakaku.com Inc.	118		472,273
Kanematsu Corp.a	472,000		451,200
Kayaba Industry Co. Ltd.	118,000		270,224
Keihin Corp.	29,500		443,453
Keiyo Bank Ltd. (The)	177,000		981,732
Kenedix Inc.a,b	413		158,788
Kenedix Realty Investment Corp.	177		589,411
Kitz Corp.	118,000		471,033
Kiyo Holdings Inc.	531,000		647,051
Kobayashi Pharmaceutical Co. Ltd.	17,700		678,660
Koito Manufacturing Co. Ltd.	59,000		861,495
Komeri Co. Ltd.	23,600		647,051
K’s Holdings Corp.	23,600		696,633
Maruha Nichiro Holdings Inc.	295,000		440,044
Marusan Securities Co. Ltd.	94,400		648,538
Matsuya Co. Ltd.b	17,700		186,120
Meidensha Corp.b	118,000		702,831
Meitec Corp.b	47,200		855,793
MID REIT Inc.	177		401,618
Miraca Holdings Inc.	29,500		732,890
Misumi Group Inc.	59,000		961,280
Mitsubishi Steel Manufacturing Co. Ltd.	177,000		390,462
Mizuno Corp.	177,000		793,939
Monex Group Inc.	708		319,807
Mori Seiki Co. Ltd.	47,200		532,020
MORI TRUST Sogo REIT Inc.	118		861,495
Musashino Bank Ltd. (The)	23,600		825,547
Nabtesco Corp.	59,000		666,264
Nagase & Co. Ltd.	118,000		1,327,570
Nanto Bank Ltd. (The)	118,000		692,914
Net One Systems Co. Ltd.	354		621,392
Nichicon Corp.	29,500		444,692
Nichi-Iko Pharmaceutical Co. Ltd.	17,700		585,692
Nifco Inc.	47,200		857,776
Nihon Dempa Kogyo Co. Ltd.	17,700		429,508
Nihon Kohden Corp.	29,500		409,365
Nihon Parkerizing Co. Ltd.	59,000		670,602
Nihon Unisys Ltd.	59,000		513,798
Nippon Coke & Engineering Co. Ltd.	88,500		105,982

Security	Shares	Value
Nippon Commercial Investment Corp.	118	$	209,114
Nippon Denko Co. Ltd.b	59,000		386,123
Nippon Kayaku Co. Ltd.	177,000		1,459,583
Nippon Konpo Unyu Soko Co. Ltd.	118,000		1,406,902
Nippon Light Metal Co. Ltd.a	413,000		403,477
Nippon Paint Co. Ltd.	236,000		1,217,249
Nippon Residential Investment Corp.	177		418,166
Nippon Seiki Co. Ltd.	59,000		722,044
Nippon Sharyo Ltd.	118,000		736,299
Nippon Shinyaku Co. Ltd.	59,000		770,387
Nippon Suisan Kaisha Ltd.	177,000		483,429
Nippon Yakin Kogyo Co. Ltd.	59,000		302,453
Nishimatsuya Chain Co. Ltd.	47,200		479,958
Nishi-Nippon Railroad Co. Ltd.	295,000		1,100,110
Nissha Printing Co. Ltd.	11,800		640,853
Nisshin OilliO Group Ltd. (The)	118,000		624,739
Nitto Boseki Co. Ltd.	236,000		416,492
NSD Co. Ltd.	47,200		493,345
Ogaki Kyoritsu Bank Ltd. (The)	177,000		777,205
Okasan Securities Group Inc.	177,000		899,921
Oki Electric Industry Co. Ltd.a	413,000		438,185
Okinawa Electric Power Co. Inc. (The)	11,800		618,541
Okuma Corp.	118,000		529,293
Orient Corp.a	177,000		208,246
ORIX JREIT Inc.	177		866,453
Osaka Securities Exchange Co. Ltd.	118		526,813
OSG Corp.	64,900		592,448
Pacific Metals Co. Ltd.	59,000		467,934
Park 24 Co. Ltd.	59,000		490,866
Pioneer Corp.a	94,400		274,687
Point Inc.	7,670		410,914
Press Kogyo Co. Ltd.	118,000		205,767
Rengo Co. Ltd.	118,000		736,299
Resorttrust Inc.	82,600		924,960
Roland Corp.	41,300		485,474
Ryohin Keikaku Co. Ltd.	17,700		730,721
Sagami Railway Co. Ltd.	531,000		2,220,054
Saizeriya Co. Ltd.	29,500		464,835
San-in Godo Bank Ltd. (The)	118,000		1,105,688

96 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI EAFE SMALL CAP INDEX FUND

July 31, 2009

Security	Shares	Value
Sanken Electric Co. Ltd.	118,000	$	463,596
Sankyu Inc.	177,000		667,504
Sanwa Holdings Corp.	295,000		1,062,923
Sanyo Shokai Ltd.	59,000		194,611
Sanyo Special Steel Co. Ltd.	118,000		477,231
Sawai Pharmaceutical Co. Ltd.	11,800		621,020
Seino Holdings Co. Ltd.	177,000		1,377,772
Shiga Bank Ltd. (The)	177,000		1,085,855
Shima Seiki Manufacturing Ltd.	17,700		443,453
Shimachu Co. Ltd.	41,300		872,031
Shinko Plantech Co. Ltd.	41,300		337,099
Sinfonia Technology Co. Ltd.	118,000		291,297
So-net Entertainment Corp.	59		120,547
So-net M3 Inc.	59		208,246
Star Micronics Co. Ltd.	35,400		358,109
Sumitomo Bakelite Co. Ltd.	236,000		1,321,372
Sumitomo Forestry Co. Ltd.	100,300		793,381
Sumitomo Osaka Cement Co. Ltd.	295,000		557,802
Sumitomo Warehouse Co. Ltd. (The)	177,000		745,596
Sysmex Corp.	17,700		674,941
Tadano Ltd.	118,000		562,761
Taiyo Yuden Co. Ltd.	59,000		802,616
Takara Holdings Inc.	118,000		782,163
Takefuji Corp.b	63,720		346,061
Toagosei Co. Ltd.	236,000		711,508
TOC Co. Ltd.	88,500		361,642
Toda Corp.	177,000		671,222
Toho Holdings Co. Ltd.	29,500		395,110
Toho Zinc Co. Ltd.	118,000		489,627
Tokai Carbon Co. Ltd.	118,000		628,457
Tokai Tokyo Financial Holdings Inc.	177,000		645,192
Tokyo Dome Corp.	177,000		557,802
Tokyo Seimitsu Co. Ltd.	35,400		487,891
Tokyo Tomin Bank Ltd. (The)	23,600		438,805
TOKYU REIT Inc.	118		652,009
Tomy Co. Ltd.	100,300		886,100
Topcon Corp.b	59,000		313,609
Toshiba Machine Co. Ltd.	118,000		430,128
TS Tech Co. Ltd.	23,600		457,398
ULVAC Inc.b	17,700		475,062
Wacom Co. Ltd.	236		497,312
Works Applications Co. Ltd.	295		211,345

Security	Shares	Value
Xebio Co. Ltd.	23,600	$	509,460
Yamatake Corp.	35,400		773,486
Yodogawa Steel Works Ltd.	177,000		842,282
Yoshinoya Holdings Co. Ltd.	708		840,422
Zeon Corp.	118,000		489,627
			113,158,162
NETHERLANDS – 2.69%
Aalberts Industries NV	49,501		457,574
Arcadis NV	37,288		699,933
BinckBank NV	32,393		477,622
Crucell NVa	30,444		751,882
CSM NV	37,160		651,433
Gemalto NVa	30,680		1,139,610
Imtech NV	31,034		656,017
Kardan NVa	12,095		85,738
Koninklijke BAM Groep NV	53,041		461,721
Koninklijke Wessanen NV	92,748		403,554
Mediq NV	39,471		519,757
Nutreco Holding NV	13,688		584,999
Oce NV	53,926		264,453
Telegraaf Media Groep NV	23,601		386,467
TomTom NVa	30,562		334,069
USG People NVa,b	34,303		454,719
VastNed Retail NV	12,477		667,770
Wavin NVb	104,253		190,520
Wereldhave NV	12,036		967,872
			10,155,710
NEW ZEALAND – 0.78%
Fisher & Paykel Appliances Holdings Ltd.	756,970		433,566
Fisher & Paykel Healthcare Corp. Ltd.	394,002		843,021
Freightways Ltd.	381,376		780,855
Kiwi Income Property Trust	839,747		547,319
Mainfreight Ltd.	116,289		348,343
			2,953,104
NORWAY – 2.67%
ABG Sundal Collier Holding ASA	472,000		546,689
Acergy SAb	88,913		944,030
Aker Solutions ASA	56,912		486,293
Cermaq ASAa	43,900		310,215
DNO International ASAa	346,861		422,596

SCHEDULES OF INVESTMENTS 97

Schedule of Investments (Continued)

iSHARES^® MSCI EAFE SMALL CAP INDEX FUND

July 31, 2009

Security	Shares	Value
Fred Olsen Energy ASA	18,054	$	653,896
Frontline Ltd.b	20,119		463,274
Golar LNG Ltd.	35,400		357,974
Marine Harvest ASAa	890,605		556,999
Norwegian Property ASAa	83,345		78,797
ODIM ASA	16,500		103,998
Petroleum Geo-Services ASAa	35,282		246,508
Schibsted ASAa	20,161		228,600
Songa Offshore SEa	35,400		127,088
SpareBanken 1 SMN	98,760		641,726
Stolt-Nielsen SA	27,239		356,201
Storebrand ASAa	122,130		659,663
Subsea 7 Inc.a,b	41,300		476,474
Tandberg ASA	43,129		910,726
TGS-NOPEC Geophysical Co. ASAa	55,578		627,294
Tomra Systems ASA	95,934		363,109
Veidekke ASA	91,550		535,389
			10,097,539
PORTUGAL – 0.73%
Mota-Engil SGPS SA	150,273		637,018
Portucel Empresa Produtore de Pasta e Papel SAb	356,310		868,368
Redes Energeticas Nacionais SA	103,451		420,643
Semapa – Sociedade de Investimento e Gestao SGPS SA	92,134		839,906
			2,765,935
SINGAPORE – 2.32%
Banyan Tree Holdings Ltd.a	767,000		359,020
Biosensors International Group Ltd.a,b	531,000		204,365
CapitaCommercial Trust	708,000		419,777
CDL Hospitality Trustsb	472,000		396,047
Ezra Holdings Ltd.a,b	295,000		315,038
Indofood Agri Resources Ltd.a,b	177,000		187,795
Keppel Land Ltd.b	354,000		652,987
Metro Holdings Ltd.	1,947,000		891,106
Raffles Education Corp. Ltd.	708,000		319,129
Singapore Petroleum Co. Ltd.	118,000		509,788
Singapore Post Ltd.	2,006,000		1,251,968
SMRT Corp. Ltd.b	472,000		556,430
Straits Asia Resources Ltd.	236,000		348,587
Suntec REITb	1,416,000		1,070,310

Security	Shares	Value
Venture Corp. Ltd.	118,000	$	781,457
Wing Tai Holdings Ltd.	413,000		495,468
			8,759,272
SPAIN – 2.45%
Abengoa SA	23,541		600,421
Banco Pastor SAb	82,017		661,631
Bolsas y Mercados Espanoles	31,171		1,004,058
Construcciones y Auxiliar de Ferrocarriles SA	1,593		709,161
Ebro Puleva SA	71,449		1,175,043
FAES FARMA SA	97,275		513,031
La Seda de Barcelona SA Class Ba,c	377,757		107,113
NH Hoteles SAa,b	103,012		408,927
Obrascon Huarte Lain SA	25,193		606,838
Papeles y Cartones de Europa SA	112,071		446,477
Tecnicas Reunidas SA	13,275		655,334
Tubacex SA	106,377		393,630
Tubos Reunidos SA	114,106		315,459
Viscofan SA	52,569		1,228,249
Zeltia SAa,b	101,952		439,409
			9,264,781
SWEDEN – 3.88%
Alliance Oil Co. Ltd. SDRa,b	25,500		322,893
Boliden AB	95,462		1,018,787
Castellum AB	86,848		634,793
D. Carnegie & Co. ABb,c	25,632		–
Elekta AB Class Bb	55,342		862,191
Eniro ABa,b	153,400		513,769
Fabege AB	94,046		400,179
Hakon Invest AB	35,400		374,151
Hexagon AB Class Bb	64,900		699,305
Hexpol ABa	23,600		133,463
Intrum Justitia AB	47,200		482,671
JM ABa	59,000		489,959
Kinnevik Investment AB	82,010		1,091,921
Kungsleden AB	73,986		394,034
Lindab International AB	35,400		295,190
Loomis AB Class B	40,238		383,861
Meda AB Class A	82,600		634,922
Modern Times Group MTG AB Class B	22,125		816,936
NCC AB Class B	35,400		359,573

98 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI EAFE SMALL CAP INDEX FUND

July 31, 2009

Security	Shares	Value
Nibe Industrier AB Class B	56,994	$	531,974
Niscayah Group AB	225,380		395,984
Nobia ABa	114,401		516,628
Oriflame Cosmetics SA SDR	16,358		803,833
PA Resources ABa,b	59,000		211,371
Peab AB	84,901		391,566
Ratos AB Class B	43,660		1,036,770
RNB RETAIL AND BRANDS ABa	202,000		124,772
SAS ABa	370,638		185,693
Trelleborg AB Class Ba	112,610		561,095
			14,668,284
SWITZERLAND – 3.68%
Athris Holding AG Bearera	266		219,967
Bank Sarasin & Compagnie AG Class B Registereda	23,600		764,190
Barry Callebaut AG Registereda	1,003		578,735
Basilea Pharmaceutica AG Registereda	3,953		350,766
Bucher Industries AG Registered	3,481		377,452
Burckhardt Compression Holding AG	2,360		307,650
Charles Voegele Holding AG Bearera	6,490		233,369
Clariant AG Registereda	97,704		726,255
Flughafen Zurich AG Registered	2,006		546,117
Forbo Holding AG Registereda	1,357		296,302
Galenica AG Registered	2,478		736,780
Georg Fischer AG Registereda	1,888		394,528
Jelmoli Holding AG Registered	1,366		503,246
Kaba Holding AG Class B Registered	2,832		548,112
Kuoni Reisen Holding AG Class B Registered	2,065		617,821
Panalpina Welttransport Holding AG Registered	6,372		485,486
Partners Group Holding AG	6,726		703,066
Petroplus Holdings AGa	24,072		379,337
PSP Swiss Property AG Registereda	18,880		995,531
Rieter Holding AG Registereda	2,242		416,215
Schulthess Group AG Registered	7,395		427,038
Sika AG Bearer	830		986,360
Sulzer AG Registered	8,732		571,992
Tecan AG Registered	10,974		469,040
Temenos Group AG Registereda	26,432		525,570

Security	Shares	Value
Valora Holding AG Registered	2,537	$	512,704
Von Roll Holding AG Bearer	37,819		255,816
			13,929,445
UNITED KINGDOM – 20.22%
Aberdeen Asset Management PLC	263,317		543,493
Aegis Group PLC	408,103		558,173
Afren PLCa	241,074		220,815
Aggreko PLC	103,250		936,316
Amlin PLC	172,457		950,644
ARM Holdings PLC	480,319		1,005,325
Arriva PLC	82,128		590,576
Ashtead Group PLC	305,266		315,038
AVEVA Group PLC	41,064		550,070
Babcock International Group PLC	96,996		756,989
Barratt Developments PLCa	133,694		439,965
BBA Aviation PLC	254,880		571,503
Bellway PLC	57,702		703,110
Bodycote PLC	102,500		242,575
Bovis Homes Group PLC	81,538		624,521
Brit Insurance Holdings PLC	126,260		436,956
Britvic PLC	135,523		766,148
BSS Group PLC (The)	100,890		434,041
BTG PLCa	112,218		333,478
Carillion PLC	238,478		1,028,926
Catlin Group Ltd.	128,266		659,202
Central African Mining & Exploration Co. PLCa	945,298		227,239
Charter International PLC	62,363		578,976
Chemring Group PLC	20,060		674,109
Chloride Group PLC	206,795		487,683
Climate Exchange PLCa	16,874		260,303
Close Brothers Group PLC	74,222		850,883
COLT Telecom Group SAa	145,907		269,105
Cookson Group PLC	130,095		671,298
CSR PLCa	65,667		464,858
Daily Mail & General Trust PLC Class A NVS	104,843		521,442
Dairy Crest Group PLC	82,128		448,293
Dana Petroleum PLCa	39,117		890,392
Davis Service Group PLC (The)	101,893		568,849
De La Rue PLC	41,851		577,611
Debenhams PLC	435,361		640,565

SCHEDULES OF INVESTMENTS 99

Schedule of Investments (Continued)

iSHARES^® MSCI EAFE SMALL CAP INDEX FUND

July 31, 2009

Security	Shares	Value
Dimension Data Holdings PLC	705,463	$	704,655
DS Smith PLC	205,084		254,999
DSG International PLC	1,557,801		710,215
easyJet PLCa	74,458		373,098
Electrocomponents PLC	225,262		554,574
Emerald Energy PLCa	35,164		364,062
Enterprise Inns PLC	201,367		475,717
Filtrona PLC	253,877		544,000
Forth Ports PLC	32,922		537,610
GAME Group PLC (The)	170,864		416,402
GKN PLC	662,715		1,128,896
Go-Ahead Group PLC (The)	21,889		436,190
Greene King PLC	119,131		834,937
Halfords Group PLC	197,709		1,140,646
Halma PLC	285,088		902,729
Hays PLC	458,961		724,746
Henderson Group PLC	341,197		595,350
Heritage Oil PLCa	87,910		794,292
Hiscox Ltd.	180,599		905,703
HMV Group PLC	270,633		489,049
Homeserve PLC	27,140		619,118
Hunting PLC	60,888		421,943
IG Group Holdings PLC	125,552		626,521
Inchcape PLC	1,625,686		741,164
Informa PLC	231,126		918,655
Inmarsat PLC	161,129		1,479,888
Intermediate Capital Group PLCb	210,652		686,236
Interserve PLC	87,674		284,887
Intertek Group PLC	64,015		1,102,662
ITV PLC	1,176,932		785,349
Jardine Lloyd Thompson Group PLC	45,489		326,542
JD Wetherspoon PLC	84,134		630,457
JKX Oil & Gas PLC	45,253		172,552
John Wood Group PLC	130,626		578,211
Kesa Electricals PLC	320,311		691,663
Laird PLC	84,960		245,433
Logica PLC	571,061		958,568
Luminar Group Holdings PLC	115,404		286,984
Marston’s PLC	391,236		601,586
Melrose PLC	156,114		298,283
Michael Page International PLC	146,792		734,336
Micro Focus International PLC	78,116		522,551

Security	Shares	Value
Misys PLCa	230,218	$	691,771
Mitchells & Butlers PLCa	120,183		518,536
Mondi PLC	152,220		668,748
Morgan Crucible Co. PLC (The)	160,716		343,045
Northumbrian Water Group PLC	204,317		790,927
Novae Group PLC	68,263		334,983
Pace PLC	106,672		381,546
Paragon Group of Companies PLC	274,350		473,024
PartyGaming PLCa	81,656		346,556
PayPoint PLC	24,898		202,258
Pennon Group PLC	120,537		912,234
Persimmon PLC	120,301		897,983
Peter Hambro Mining PLC	48,249		522,732
Petrofac Ltd.	81,066		1,008,637
Premier Farnell PLC	252,284		599,142
Premier Foods PLCa	806,772		518,284
Premier Oil PLCa	43,306		888,102
Provident Financial PLC	68,322		914,070
Punch Taverns PLCa	261,347		454,938
QinetiQ Group PLC	233,699		523,041
Redrow PLCa	84,311		267,669
Regal Petroleum PLCa	94,872		104,987
Regus PLC	295,354		341,533
Rentokil Initial PLC	643,690		1,035,127
Restaurant Group PLC (The)	222,843		590,181
SDL PLCa	74,222		440,515
Shaftesbury PLC	126,297		692,006
SIG PLC	216,766		437,527
Signet Jewelers Ltd.	37,655		832,767
SOCO International PLCa	19,057		409,770
Spectris PLC	64,487		595,487
Spirent Communications PLC	162,066		188,077
SSL International PLC	89,916		842,975
Tate & Lyle PLC	163,725		998,189
Taylor Wimpey PLCa	1,162,477		751,613
Travis Perkins PLC	70,328		949,652
Trinity Mirror PLC	122,189		165,602
Tullett Prebon PLC	103,191		607,317
UK Coal PLCa	79,827		155,501
Ultra Electronics Holdings PLC	46,669		882,020
Vectura Group PLCa	343,321		443,956
Venture Production PLC	43,956		608,485

100 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI EAFE SMALL CAP INDEX FUND

July 31, 2009

Security	Shares	Value
VT Group PLC	100,300	$	781,527
W.S. Atkins PLC	45,312		477,767
Weir Group PLC (The)	74,340		673,532
Wellstream Holdings PLC	35,872		323,816
WH Smith PLC	103,427		729,590
William Hill PLC	245,086		745,590
Wincanton PLC	103,545		321,008
Xchanging PLC	125,198		398,514
Yell Group PLCa	466,985		238,064
			76,421,850
TOTAL COMMON STOCKS
(Cost: $376,639,427)			376,121,066
RIGHTS – 0.04%
AUSTRALIA – 0.00%
Transpacific Industries Group Ltd.a,b,c	131,231		1,091
			1,091
GERMANY – 0.03%
Infineon Technologies AGa	236,555		85,856
RHON-KLINIKUM AGa	35,530		44,782
			130,638
UNITED KINGDOM – 0.01%
Luminar Group Holdings PLCa,c	38,468		35,076
			35,076
TOTAL RIGHTS
(Cost: $0)			166,805
WARRANTS – 0.01%
SWITZERLAND – 0.01%
Bank Sarasin & Compagnie AG (Expires 9/15/09)a	21,200		19,304
			19,304
TOTAL WARRANTS
(Cost: $17,411)			19,304

Security	Shares	Value
SHORT-TERM INVESTMENTS – 4.36%
MONEY MARKET FUNDS – 4.36%
Barclays Global Investors Funds Institutional Money Market Fund, SL Agency Shares 0.33%d,e,f	14,374,123	$	14,374,123
Barclays Global Investors Funds Prime Money Market Fund, SL Agency Shares 0.26%d,e,f	1,990,390		1,990,390
Barclays Global Investors Funds Treasury Money Market Fund, SL Agency Shares 0.12%d,e	122,770		122,770
			16,487,283
TOTAL SHORT-TERM INVESTMENTS
(Cost: $16,487,283)			16,487,283
TOTAL INVESTMENTS IN SECURITIES – 103.91%
(Cost: $393,144,121)			392,794,458
Other Assets, Less Liabilities – (3.91)%			(14,795,859	)
NET ASSETS – 100.00%		$	377,998,599

NVS – Non-Voting Shares

SDR – Swedish 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 using Level 3 inputs. 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 All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 101

Schedule of Investments

iSHARES^® MSCI KOKUSAI INDEX FUND

July 31, 2009

Security	Shares	Value
COMMON STOCKS – 99.38%
AUSTRALIA – 3.89%
AGL Energy Ltd.	2,704	$	33,495
Alumina Ltd.	7,548		10,730
Amcor Ltd.	4,316		17,761
AMP Ltd.	9,373		43,792
Aristocrat Leisure Ltd.	2,509		8,969
Arrow Energy Ltd.a	3,744		13,353
ASX Ltd.	884		27,618
Australia and New Zealand Banking Group Ltd.	9,763		150,398
AXA Asia Pacific Holdings Ltd.	3,926		13,872
Bendigo and Adelaide Bank Ltd.	1,885		12,850
BHP Billiton Ltd.	16,666		524,422
BlueScope Steel Ltd.	8,060		22,581
Boral Ltd.	4,628		19,199
Brambles Ltd.	7,020		34,958
Caltex Australia Ltd.	1,352		14,646
CFS Retail Property Trust	12,129		17,293
Coca-Cola Amatil Ltd.	3,328		25,814
Cochlear Ltd.	390		18,040
Commonwealth Bank of Australia	7,228		257,185
Computershare Ltd.	2,236		18,273
CSL Ltd.	2,938		74,619
CSR Ltd.	4,355		6,716
Dexus Property Group	12,202		7,405
Energy Resources of Australia Ltd.	195		4,101
Fairfax Media Ltd.	10,340		12,679
Fortescue Metals Group Ltd.a	6,240		21,892
Foster’s Group Ltd.	11,882		53,243
Goodman Fielder Ltd.	8,099		9,325
GPT Group	35,520		15,651
Harvey Norman Holdings Ltd.	4,173		11,379
Incitec Pivot Ltd.	9,178		21,059
Insurance Australia Group Ltd.	8,528		26,019
James Hardie Industries NVa	3,276		14,135
Leighton Holdings Ltd.	702		17,613
Lend Lease Corp. Ltd.	1,924		12,396
Lion Nathan Ltd.	2,705		26,333
Macquarie Group Ltd.b	1,404		51,381
Macquarie Infrastructure Group	13,611		16,407
Mirvac Group	16,178		17,148

Security	Shares	Value
National Australia Bank Ltd.	8,840	$	178,804
Newcrest Mining Ltd.	2,314		57,712
OneSteel Ltd.	9,590		23,838
Orica Ltd.	1,888		35,253
Origin Energy Ltd.	5,044		60,803
OZ Minerals Ltd.	15,292		14,239
Paladin Energy Ltd.a	2,522		9,561
Perpetual Ltd.	520		14,486
Qantas Airways Ltd.	5,122		9,879
QBE Insurance Group Ltd.	4,667		75,658
Rio Tinto Ltd.	1,956		98,218
Santos Ltd.	4,287		51,749
Sims Metal Management Ltd.	624		14,448
Sonic Healthcare Ltd.	1,966		19,123
SP AusNet	30,777		19,957
Stockland Corp. Ltd.	10,683		27,976
Suncorp-Metway Ltd.	6,227		36,755
Tabcorp Holdings Ltd.	4,004		24,100
Tatts Group Ltd.	7,306		14,881
Telstra Corp. Ltd.	19,840		58,224
Toll Holdings Ltd.	2,795		15,777
Transurban Group	5,382		19,374
Wesfarmers Ltd.	4,199		90,238
Wesfarmers Ltd. Partially Protected	299		6,423
Westfield Group	8,957		84,368
Westpac Banking Corp.	13,260		239,104
Woodside Petroleum Ltd.	2,535		96,312
Woolworths Ltd.	6,006		136,062
WorleyParsons Ltd.	975		20,921
			3,258,993
AUSTRIA – 0.22%
Erste Group Bank AG	1,104		38,332
Oesterreichische Elektrizitaetswirtschafts AG Class A	651		31,556
OMV AG	975		38,497
Raiffeisen International Bank Holding AG	403		17,889
Telekom Austria AG	1,898		28,819
Vienna Insurance Group	130		5,972
voestalpine AG	728		20,095
			181,160

102 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI KOKUSAI INDEX FUND

July 31, 2009

Security	Shares	Value
BELGIUM – 0.49%
Anheuser-Busch InBev NV	3,464	$	137,093
Belgacom SA	616		21,951
Colruyt SA	91		20,255
Compagnie Nationale a Portefeuille SA	208		10,699
Delhaize Group	468		33,288
Dexia SAa	3,120		24,377
Fortisa	12,694		49,132
Groupe Bruxelles Lambert SA	405		31,971
KBC Groep NVa	1,053		22,334
Mobistar SA	138		8,748
Solvay SA	242		23,595
UCB SA	533		17,531
Umicore	221		5,740
			406,714
CANADA – 5.41%
Addax Petroleum Corp.	533		25,267
Agnico-Eagle Mines Ltd.	871		50,910
Agrium Inc.	676		30,958
Alimentation Couche-Tard Inc. Class B	1,092		17,192
Bank of Montreal	2,587		129,266
Bank of Nova Scotia	4,888		207,619
Barrick Gold Corp.	4,355		151,545
BCE Inc.	1,027		23,492
Biovail Corp.	806		10,698
Bombardier Inc. Class B	7,254		25,632
Brookfield Asset Management Inc. Class A	2,548		53,336
Brookfield Properties Corp.	1,235		11,481
CAE Inc.	2,132		14,100
Cameco Corp.	1,729		47,339
Canadian Imperial Bank of Commerce	1,872		114,820
Canadian National Railway Co.	2,405		116,546
Canadian Natural Resources Ltd.	2,652		158,860
Canadian Oil Sands Trust	1,131		28,372
Canadian Pacific Railway Ltd.	767		33,983
Canadian Tire Corp. Ltd. Class A	377		18,859
Canadian Utilities Ltd. Class A	403		13,643
CGI Group Inc. Class Aa	2,262		22,911
CI Financial Corp.	741		14,462
Crescent Point Energy Corp.	468		15,151

Security	Shares	Value
Eldorado Gold Corp.a	1,768	$	17,711
Enbridge Inc.	1,924		74,194
EnCana Corp.	3,705		198,016
Enerplus Resources Fund	663		14,406
Ensign Energy Services Inc.	741		11,200
Fairfax Financial Holdings Ltd.	91		27,609
Finning International Inc.	689		10,605
First Quantum Minerals Ltd.	351		23,295
Fortis Inc.	962		22,655
Franco-Nevada Corp.	468		11,645
George Weston Ltd.	78		4,236
Gerdau Ameristeel Corp.	1,326		9,162
Gildan Activewear Inc.a	663		11,014
Goldcorp Inc.	3,705		140,270
Great-West Lifeco Inc.	1,131		27,095
Groupe Aeroplan Inc.	1,469		13,330
Husky Energy Inc.	1,222		35,831
IAMGOLD Corp.	1,456		15,380
IGM Financial Inc.	650		27,050
Imperial Oil Ltd.	1,560		62,264
Inmet Mining Corp.	299		12,490
Intact Financial Corp.	260		8,497
Ivanhoe Mines Ltd.a	1,625		13,077
Kinross Gold Corp.	3,588		70,525
Loblaw Companies Ltd.	832		26,320
Magna International Inc. Class A	494		24,903
Manulife Financial Corp.	7,579		183,393
Metro Inc. Class A	221		6,899
National Bank of Canada	871		46,817
Nexen Inc.	2,288		47,258
Niko Resources Ltd.	299		20,992
Onex Corp.	754		14,751
Open Text Corp.a	299		11,292
Pan American Silver Corp.a	455		8,863
Penn West Energy Trust	2,080		27,032
Petro-Canada	2,379		97,902
Potash Corp. of Saskatchewan Inc.	1,521		141,197
Power Corp. of Canada	1,573		43,999
Power Financial Corp.	1,053		30,438
Research In Motion Ltd.a	2,496		188,903
Ritchie Bros. Auctioneers Inc.	195		4,654
Rogers Communications Inc. Class B	2,431		67,302

SCHEDULES OF INVESTMENTS 103

Schedule of Investments (Continued)

iSHARES^® MSCI KOKUSAI INDEX FUND

July 31, 2009

Security	Shares	Value
Royal Bank of Canada	6,500	$	308,316
Saputo Inc.	871		18,965
Shaw Communications Inc. Class B	1,794		31,380
Sherritt International Corp.	2,412		13,676
Shoppers Drug Mart Corp.	923		38,428
Silver Wheaton Corp.a	1,352		12,418
Sino-Forest Corp. Class Aa	1,274		17,323
SNC-Lavalin Group Inc.	689		28,972
Sun Life Financial Inc.	2,717		92,535
Suncor Energy Inc.	4,498		144,955
Talisman Energy Inc.	5,083		78,283
Teck Resources Ltd. Class Ba	2,353		61,703
TELUS Corp. NVS	767		21,107
Thomson Reuters Corp.	1,209		38,906
Tim Hortons Inc.	1,040		28,174
TMX Group Inc.	481		15,416
Toronto-Dominion Bank (The)	3,926		229,183
TransAlta Corp.	1,157		22,967
TransCanada Corp.	2,964		84,004
Trican Well Service Ltd.	1,170		10,389
Viterra Inc.a	1,235		10,361
Yamana Gold Inc.	3,198		30,380
Yellow Pages Income Fund	1,976		9,139
			4,537,894
DENMARK – 0.45%
Carlsberg A/S Class B	416		28,714
Coloplast A/S Class B	273		19,909
Danske Bank A/Sa	2,340		48,454
DSV A/Sa	1,105		15,149
Novo Nordisk A/S Class B	2,418		141,576
Novozymes A/S Class B	247		22,081
Topdanmark A/Sa	182		24,743
Vestas Wind Systems A/Sa	936		65,586
William Demant Holding A/Sa	133		7,876
			374,088
FINLAND – 0.66%
Elisa OYJ	884		16,130
Fortum OYJ	2,327		53,610
Kesko OYJ Class B	442		11,593
Kone OYJ Class B	806		27,276
Metso OYJ	689		14,447
Neste Oil OYJ	767		10,787

Security	Shares	Value
Nokia OYJ	18,486	$	244,788
Nokian Renkaat OYJ	910		19,120
Orion OYJ Class B	273		4,761
Outokumpu OYJ	793		15,459
Rautaruukki OYJ	559		12,030
Sampo OYJ Class A	2,275		47,252
Stora Enso OYJ Class Ra	3,991		25,236
UPM-Kymmene OYJ	2,847		29,667
Wartsila OYJ Class B	559		19,892
			552,048
FRANCE – 5.57%
Accor SA	1,066		45,264
Aeroports de Paris	247		19,831
Air France-KLMa	728		9,115
Alcatel-Lucenta	11,544		31,751
ALSTOM	832		56,820
ArcelorMittal	4,259		152,465
Atos Origin SAa	468		21,222
AXA	7,826		164,543
BNP Paribas	4,147		300,732
Bouygues SA	1,079		45,717
Bureau Veritas SA	78		3,677
Cap Gemini SA	702		32,241
Carrefour SA	3,185		148,719
Casino Guichard-Perrachon SA	247		16,931
Christian Dior SA	208		17,959
CNP Assurances SA	221		20,087
Compagnie de Saint-Gobain	1,824		73,571
Compagnie Generale de Geophysique-Veritasa	650		13,104
Compagnie Generale des Etablissements Michelin Class B	741		53,221
Credit Agricole SA	4,525		64,249
Danone SA	2,649		141,380
Dassault Systemes SA	442		21,995
Eiffage SA	169		11,207
Electricite de France	975		48,070
Eramet	52		14,542
Essilor International SA	949		52,338
Eurazeo	117		5,290
European Aeronautic Defence and Space Co.b	1,496		28,378

104 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI KOKUSAI INDEX FUND

July 31, 2009

Security	Shares	Value
Fonciere des Regions	52	$	4,535
France Telecom SA	9,022		223,969
GDF Suez	5,942		225,813
Gecina SA	78		6,387
Hermes Internationalb	273		40,814
Icade	169		14,711
Iliad SA	52		5,522
Klépierre	573		16,296
Lafarge SA	960		68,978
Lagardere SCA	676		25,115
L’Air Liquide SA	1,354		140,632
L’Oreal SA	1,248		107,594
LVMH Moet Hennessy Louis Vuitton SA	1,222		109,649
Natixisa	15,525		40,213
Neopost SA	247		20,924
Pernod Ricard SA	1,140		88,117
PPR SA	403		44,674
PSA Peugeot Citroen SAa	780		23,532
Publicis Groupe SA	988		34,934
Renault SAa	936		39,704
Safran SA	1,352		20,797
Sanofi-Aventis	5,213		339,678
Schneider Electric SA	1,157		104,555
SCOR SE	975		23,285
SES SA	1,053		20,691
Societe Generale	2,145		137,000
Societe Television Francaise 1	936		14,425
Sodexo	533		27,914
STMicroelectronics NV	3,458		26,273
Suez Environnement SA	1,795		34,025
Technip SA	481		28,928
Thales SA	481		20,226
Total SA	10,413		574,430
Unibail-Rodamco SE	351		61,010
Vallourec SA	247		32,322
Veolia Environnement	1,729		59,150
Vinci SA	2,002		101,357
Vivendi SA	5,876		150,161
			4,672,759
GERMANY – 4.00%
Adidas AG	923		38,800
Allianz SE Registered	2,275		223,196

Security	Shares	Value
BASF SE	4,836	$	241,065
Bayer AG	3,783		230,946
Bayerische Motoren Werke AG	1,378		63,357
Beiersdorf AG	403		20,186
Celesio AG	442		11,712
Daimler AG Registered	4,381		201,676
Deutsche Bank AG Registered	2,782		179,026
Deutsche Boerse AG	988		77,881
Deutsche Lufthansa AG Registered	975		13,104
Deutsche Post AG Registered	3,783		59,560
Deutsche Postbank AGa	871		23,932
Deutsche Telekom AG Registered	14,469		184,416
E.ON AG	9,295		350,007
Fresenius Medical Care AG & Co. KGaA	936		42,756
GEA Group AG	1,118		18,212
Hamburger Hafen und Logistik AG	104		4,748
Hannover Rueckversicherung AG Registereda	260		10,524
Henkel AG & Co. KGaA	507		15,871
Hochtief AG	195		11,645
K+S AG	728		40,645
Linde AG	598		56,142
MAN SE	559		38,437
Merck KGaA	325		30,088
METRO AG	624		35,944
Muenchener Rueckversicherungs-Gesellschaft AG Registered	1,027		154,470
QIAGEN NVa	910		17,275
RWE AG	2,132		179,092
Salzgitter AG	221		22,293
SAP AG	4,342		203,144
Siemens AG Registered	4,134		328,215
SolarWorld AG	429		10,376
Suedzucker AG	208		4,347
ThyssenKrupp AG	1,833		56,133
Volkswagen AG	429		153,428
			3,352,649
GREECE – 0.10%
Hellenic Telecommunications Organization SA SP ADR	2,717		21,301
National Bank of Greece SA SP ADR	10,214		60,569
			81,870

SCHEDULES OF INVESTMENTS 105

Schedule of Investments (Continued)

iSHARES^® MSCI KOKUSAI INDEX FUND

July 31, 2009

Security	Shares	Value
HONG KONG – 1.50%
Bank of East Asia Ltd.	10,880	$	36,220
BOC Hong Kong (Holdings) Ltd.	19,500		41,566
Cheung Kong (Holdings) Ltd.	13,000		167,909
CLP Holdings Ltd.	6,500		44,200
Esprit Holdings Ltd.b	6,500		46,967
Foxconn International Holdings Ltd.a	13,000		9,092
Hang Lung Properties Ltd.	13,000		47,638
Hang Seng Bank Ltd.	5,200		84,474
Hong Kong and China Gas Co. Ltd. (The)	13,200		29,534
Hong Kong Exchanges and Clearing Ltd.	6,500		122,619
Hongkong Electric Holdings Ltd.	6,500		35,855
Hutchison Whampoa Ltd.	13,000		97,374
Kerry Properties Ltd.	6,500		33,548
Link REIT (The)	13,000		29,522
MTR Corp. Ltd.	13,000		47,135
New World Development Co. Ltd.	13,000		31,032
Noble Group Ltd.	13,400		19,421
Sun Hung Kai Properties Ltd.	13,000		197,767
Swire Pacific Ltd. Class A	6,500		73,009
Wharf (Holdings) Ltd. (The)	13,000		61,142
			1,256,024
IRELAND – 0.20%
Anglo Irish Bank Corp. Ltd.c	6,552		1
CRH PLC	3,436		81,596
Elan Corp. PLCa	2,327		18,805
Ingersoll-Rand PLC	1,600		46,208
Kerry Group PLC Class A	871		20,523
			167,133
ITALY – 1.84%
A2A SpA	11,414		20,681
Alleanza Assicurazioni SpA	1,354		10,126
Assicurazioni Generali SpA	4,896		110,991
Atlantia SpA	1,629		35,751
Autogrill SpAa	1,469		14,173
Banca Carige SpA	6,123		17,353
Banca Monte dei Paschi di Siena SpA	11,297		21,061
Banca Popolare di Milano Scrl	2,072		12,477
Banco Popolare SpAa	4,940		39,711

Security	Shares	Value
Enel SpA	31,213	$	168,712
Eni SpA	12,200		282,453
Fiat SpAa	4,073		44,926
Finmeccanica SpA	1,183		17,845
Fondiaria-Sai SpA	364		6,064
Intesa Sanpaolo SpAa	35,668		132,110
Luxottica Group SpAa	884		22,008
Mediaset SpA	3,601		21,659
Mediobanca SpA	2,795		39,032
Mediolanum SpA	3,770		21,420
Parmalat SpA	6,752		16,781
Pirelli & C. SpAa	33,254		13,790
Prysmian SpA	845		14,460
Saipem SpA	858		23,112
Snam Rete Gas SpA	4,160		18,121
Telecom Italia SpA	51,273		79,816
Tenaris SA	2,067		31,180
Terna SpA	9,464		33,175
UniCredit SpAa	76,756		223,627
Unione di Banche Italiane ScpA	2,658		36,987
Unipol Gruppo Finanziario SpAa	9,048		11,263
			1,540,865
NETHERLANDS – 1.37%
Aegon NV	7,332		53,617
Akzo Nobel NV	1,404		76,625
ASML Holding NV	2,054		53,495
Corio NV	299		16,482
Fugro NV CVA	156		6,964
Heineken NV	1,209		48,011
ING Groep NV CVA	12,532		159,870
Koninklijke Ahold NV	6,370		72,059
Koninklijke DSM NV	819		29,121
Koninklijke KPN NV	9,373		140,128
Koninklijke Philips Electronics NV	5,681		128,868
Randstad Holding NVa	182		6,270
Reed Elsevier NV	3,341		34,834
SBM Offshore NV	775		14,745
TNT NV	2,162		51,081
Unilever NV CVA	8,372		227,536
Wolters Kluwer NV	1,573		30,776
			1,150,482

106 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI KOKUSAI INDEX FUND

July 31, 2009

Security	Shares	Value
NORWAY – 0.37%
DnB NOR ASAa	4,316	$	37,398
Norsk Hydro ASAa	1,758		10,281
Orkla ASA	1,378		10,866
Renewable Energy Corp. ASAa	1,031		8,151
Seadrill Ltd.	1,872		29,923
StatoilHydro ASA	6,968		148,282
Telenor ASAa	4,500		41,331
Yara International ASA	888		27,408
			313,640
PORTUGAL – 0.22%
Banco Comercial Portugues SA Registered	23,531		25,054
Banco Espirito Santo SA Registered	3,005		18,665
BRISA – Auto-estradas de Portugal SA	3,382		27,858
CIMPOR – Cimentos de Portugal SGPS SA	819		6,200
EDP Renovaveis SAa	312		3,187
Energias de Portugal SA	11,960		47,189
Galp Energia SGPS SA Class B	533		6,937
Portugal Telecom SGPS SA Registered	4,997		50,357
			185,447
SINGAPORE – 0.82%
CapitaLand Ltd.	13,000		34,437
CapitaMall Trust Management Ltd.	39,200		42,950
ComfortDelGro Corp. Ltd.	26,000		27,946
DBS Group Holdings Ltd.	13,000		125,127
Genting Singapore PLCa	13,000		7,618
Neptune Orient Lines Ltd.	35,499		40,864
Oversea-Chinese Banking Corp. Ltd.	13,000		70,497
SembCorp Marine Ltd.	13,000		28,127
Singapore Press Holdings Ltd.	13,000		32,364
Singapore Technologies Engineering Ltd.	13,000		23,709
Singapore Telecommunications Ltd.	39,000		94,657
United Overseas Bank Ltd.	13,000		159,384
			687,680
SPAIN – 2.53%
Abertis Infraestructuras SA	1,516		31,229
Acciona SA	143		17,182
Acerinox SA	1,027		20,268
Actividades de Construcciones y Servicios SA	962		50,995

Security	Shares	Value
Banco Bilbao Vizcaya Argentaria SA	18,242	$	297,937
Banco de Sabadell SA	4,849		32,173
Banco de Valencia SA	1,284		12,451
Banco Popular Espanol SAb	4,548		40,848
Banco Santander SA	37,817		544,729
Bankinter SA	1,501		16,961
Cintra Concesiones de Infraestructuras de Transporte SA	1,638		13,353
Criteria CaixaCorp SA	3,068		14,680
Enagas SA	923		18,157
Gamesa Corporacion Tecnologica SA	1,001		21,543
Gas Natural SDG SA	1,131		21,054
Gestevision Telecinco SA	468		5,308
Grifols SA	559		10,124
Grupo Ferrovial SA	338		11,549
Iberdrola Renovables SA	2,496		11,465
Iberdrola SA	18,798		160,438
Indra Sistemas SA	962		21,993
Industria de Diseno Textil SA	1,144		61,211
Mapfre SA	6,524		24,233
Red Electrica Corporacion SA	572		26,737
Repsol YPF SA	3,887		89,771
Sacyr Vallehermoso SA	613		9,768
Telefonica SA	20,995		519,560
Zardoya Otis SA	614		13,876
Zardoya Otis SA Newc	42		949
			2,120,542
SWEDEN – 1.36%
Alfa Laval AB	1,924		20,758
Assa Abloy AB Class B	1,495		24,420
Atlas Copco AB Class A	3,133		36,984
Atlas Copco AB Class B	1,807		18,975
Electrolux AB Class Ba	1,456		26,980
Getinge AB Class B	1,080		16,010
Hennes & Mauritz AB Class B	2,327		137,027
Husqvarna AB Class Ba	1,577		9,849
Investor AB Class B	1,807		31,872
Lundin Petroleum ABa	1,794		15,735
Millicom International Cellular SA SDRa	338		25,192
Nordea Bank AB	15,483		148,767
Sandvik AB	4,615		43,551
Scania AB Class B	1,768		20,506

SCHEDULES OF INVESTMENTS 107

Schedule of Investments (Continued)

iSHARES^® MSCI KOKUSAI INDEX FUND

July 31, 2009

Security	Shares	Value
Securitas AB Class B	1,833	$	17,109
Skandinaviska Enskilda Banken AB Class Aa	10,011		55,378
Skanska AB Class B	2,275		31,618
SKF AB Class B	1,690		25,111
SSAB AB Class A	988		12,816
Svenska Cellulosa AB Class B	2,587		32,935
Svenska Handelsbanken AB Class A	2,340		56,691
Swedbank AB Class Aa	4,641		35,515
Swedish Match AB	1,131		21,385
Tele2 AB Class B	1,378		18,366
Telefonaktiebolaget LM Ericsson AB Class B	14,756		143,402
TeliaSonera AB	10,933		69,482
Volvo AB Class A	1,131		7,956
Volvo AB Class B	5,421		39,251
			1,143,641
SWITZERLAND – 4.02%
ABB Ltd. Registereda	10,764		195,227
Actelion Ltd. Registereda	559		30,618
Adecco SA Registered	663		31,725
Aryzta AGa	312		10,871
Baloise Holding Registered	234		18,524
Compagnie Financiere Richemont SA Class A Bearer Units	2,470		60,267
Credit Suisse Group AG Registered	5,356		251,315
Geberit AG Registered	208		28,816
Givaudan SA Registered	43		28,547
Holcim Ltd. Registereda	1,326		79,960
Julius Baer Holding AG Registered	1,092		51,645
Kuehne & Nagel International AG Registered	351		29,026
Logitech International SA Registereda	871		14,567
Lonza Group AG Registered	247		24,304
Nestle SA Registered	17,628		720,353
Nobel Biocare Holding AG Registered	585		13,795
Novartis AG Registered	10,179		462,867
Pargesa Holding SA Bearer	216		15,745
Roche Holding AG Genusschein	3,484		545,462
Schindler Holding AG Participation Certificates	221		14,169
SGS SA Registered	26		30,487

Security	Shares	Value
Sonova Holding AG Registered	234	$	20,492
Straumann Holding AG Registered	26		5,655
Swatch Group AG (The) Bearer	72		13,065
Swatch Group AG (The) Registered	210		7,737
Swiss Life Holding AG Registereda	221		21,992
Swiss Reinsurance Co. Registered	1,885		71,810
Swisscom AG Registered	78		25,420
Syngenta AG Registered	520		119,147
Synthes Inc.b	299		33,366
UBS AG Registereda	17,331		251,370
Zurich Financial Services AG Registered	715		139,512
			3,367,856
UNITED KINGDOM – 11.04%
Admiral Group PLC	702		11,132
AMEC PLC	1,703		19,904
Anglo American PLC	6,348		203,114
Antofagasta PLC	1,625		20,394
Associated British Foods PLC	1,495		19,729
AstraZeneca PLC	7,098		329,841
Autonomy Corp. PLCa	949		18,486
Aviva PLC	12,753		74,158
BAE Systems PLC	17,472		88,925
Balfour Beatty PLC	2,587		13,113
Barclays PLCd	55,264		276,966
Berkeley Group Holdings PLC (The) Unitsa	91		1,246
BG Group PLC	16,627		275,375
BHP Billiton PLC	11,141		288,688
BP PLC	90,935		749,562
British Airways PLCa	3,835		9,054
British American Tobacco PLC	9,933		305,965
British Land Co. PLC	3,965		28,594
British Sky Broadcasting Group PLC	5,811		52,600
BT Group PLC	39,117		82,133
Bunzl PLC	1,287		11,052
Burberry Group PLC	2,197		16,755
Cable & Wireless PLC	9,672		23,122
Cadbury PLC	6,501		63,696
Cairn Energy PLCa	715		28,401
Capita Group PLC	2,704		29,923
Carnival PLC	910		26,311

108 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI KOKUSAI INDEX FUND

July 31, 2009

Security	Shares	Value
Centrica PLC	24,520	$	89,533
Cobham PLC	6,383		18,952
Compass Group PLC	9,113		48,723
Diageo PLC	12,480		194,072
Drax Group PLC	1,807		11,990
Eurasian Natural Resources Corp.	1,600		22,905
Experian PLC	4,810		39,393
FirstGroup PLC	2,041		11,217
Friends Provident Group PLC	8,584		9,983
G4S PLC	5,837		20,660
GlaxoSmithKline PLC	25,285		481,646
Hammerson PLC	3,840		21,947
Home Retail Group PLC	4,342		22,603
HSBC Holdings PLC	88,756		891,326
ICAP PLC	2,691		20,254
Imperial Tobacco Group PLC	4,512		127,987
InterContinental Hotels Group PLC	1,586		17,853
International Power PLC	7,384		31,247
Invensys PLC	4,017		17,182
Investec PLC	2,470		16,543
J Sainsbury PLC	6,643		34,967
Johnson Matthey PLC	1,001		23,499
Kazakhmys PLC	1,326		18,829
Kingfisher PLC	11,973		42,230
Ladbrokes PLC	4,030		11,725
Land Securities Group PLC	4,671		41,352
Legal & General Group PLC	30,628		32,726
Liberty International PLCb	1,692		12,230
London Stock Exchange Group PLC	819		9,667
Lonmin PLCa	985		22,552
Man Group PLC	13,520		62,031
Marks & Spencer Group PLC	8,502		48,734
National Grid PLC	12,753		118,081
Next PLC	1,040		29,397
Old Mutual PLC	25,675		40,786
Pearson PLC	4,121		47,380
Prudential PLC	12,051		89,555
Randgold Resources Ltd.	273		16,452
Reckitt Benckiser PLC	2,938		140,083
Reed Elsevier PLC	5,447		38,221
Rexam PLC	4,498		17,599
Rio Tinto PLC	6,929		285,917

Security	Shares	Value
Rolls-Royce Group PLCa	9,113	$	62,585
Royal Dutch Shell PLC Class A	17,056		444,503
Royal Dutch Shell PLC Class B	12,935		333,244
RSA Insurance Group PLC	11,713		24,584
SABMiller PLC	4,394		101,037
Sage Group PLC (The)	5,928		19,203
Schroders PLC	923		14,958
Scottish & Southern Energy PLC	4,186		76,823
SEGRO PLC	3,573		16,349
Serco Group PLC	2,730		18,262
Severn Trent PLC	1,066		17,116
Shire PLC	2,496		36,745
Smith & Nephew PLC	4,498		35,458
Smiths Group PLC	1,521		18,155
Standard Chartered PLC	9,334		219,891
Standard Life PLC	9,893		32,441
Tesco PLC	38,857		236,740
Thomas Cook Group PLC	2,392		8,605
Thomson Reuters PLC	1,015		32,224
3i Group PLC	8,882		40,310
Tomkins PLC	6,344		18,616
TUI Travel PLC	3,393		12,769
Tullow Oil PLC	3,757		61,569
Unilever PLC	6,435		168,559
United Utilities Group PLC	3,071		22,949
Vedanta Resources PLC	559		16,348
Vodafone Group PLC	256,789		522,356
Whitbread PLC	962		13,803
Wm Morrison Supermarkets PLC	9,412		42,052
Wolseley PLCa	1,573		34,918
WPP PLC	5,538		42,394
Xstrata PLC	10,285		137,806
			9,251,640
UNITED STATES – 53.32%
Abbott Laboratories	7,605		342,149
Abercrombie & Fitch Co. Class A	442		12,637
Accenture Ltd. Class A	2,821		98,932
ACE Ltd.	1,573		77,171
Activision Blizzard Inc.a	2,782		31,854
Adobe Systems Inc.a	2,548		82,606
Advance Auto Parts Inc.	483		22,329
Advanced Micro Devices Inc.a,b	2,262		8,279

SCHEDULES OF INVESTMENTS 109

Schedule of Investments (Continued)

iSHARES^® MSCI KOKUSAI INDEX FUND

July 31, 2009

Security	Shares	Value
AES Corp. (The)a	3,328	$	42,565
Aetna Inc.	2,314		62,409
Affiliated Computer Services Inc. Class Aa	585		27,735
Aflac Inc.	2,613		98,927
AGCO Corp.a	377		11,860
Agilent Technologies Inc.a	1,963		45,581
Air Products and Chemicals Inc.	1,079		80,493
Akamai Technologies Inc.a	780		12,823
Alcoa Inc.	5,759		67,726
Allegheny Energy Inc.	611		15,403
Allegheny Technologies Inc.	468		12,673
Allergan Inc.	1,417		75,710
Alliance Data Systems Corp.a	364		18,564
Alliant Energy Corp.	611		15,984
Allstate Corp. (The)	2,730		73,464
Altera Corp.	1,703		31,829
Altria Group Inc.	10,361		181,628
Amazon.com Inc.a	1,690		144,934
AMB Property Corp.	910		18,027
Ameren Corp.	1,144		29,092
American Eagle Outfitters Inc.	1,170		16,836
American Electric Power Co. Inc.	1,950		60,372
American Express Co.	6,188		175,306
American International Group Inc.b	520		6,833
American Tower Corp. Class Aa	2,002		68,248
Ameriprise Financial Inc.	1,976		54,933
AmerisourceBergen Corp.	1,768		34,865
AMETEK Inc.	338		10,938
Amgen Inc.a	5,083		316,722
Amphenol Corp. Class A	780		26,013
Anadarko Petroleum Corp.	2,262		109,028
Analog Devices Inc.	1,521		41,630
Annaly Capital Management Inc.	2,626		44,248
Aon Corp.	1,300		51,285
Apache Corp.	1,664		139,693
Apollo Group Inc. Class Aa	650		44,876
Apple Inc.a	4,381		715,812
Applied Materials Inc.	6,396		88,265
Aqua America Inc.	481		8,687
Arch Coal Inc.	702		12,222
Archer-Daniels-Midland Co.	2,873		86,535

Security	Shares	Value
Arrow Electronics Inc.a	676	$	17,421
Associated Banc-Corp.	1,131		12,260
Assurant Inc.	1,001		25,546
AT&T Inc.	30,303		794,848
Autodesk Inc.a	1,131		24,667
Automatic Data Processing Inc.	2,509		93,460
AutoNation Inc.a,b	650		13,442
AutoZone Inc.a,b	221		33,939
AvalonBay Communities Inc.	431		25,084
Avery Dennison Corp.	494		13,205
Avnet Inc.a	741		18,080
Avon Products Inc.	2,132		69,034
Axis Capital Holdings Ltd.	377		10,729
Baker Hughes Inc.	1,560		63,180
Ball Corp.	234		11,316
Bank of New York Mellon Corp. (The)	6,916		189,083
Baxter International Inc.	2,990		168,546
BB&T Corp.	3,211		73,468
Beckman Coulter Inc.	377		23,747
Becton, Dickinson and Co.	1,170		76,226
Bed Bath & Beyond Inc.a	1,274		44,272
Berkshire Hathaway Inc. Class Ba	55		174,928
Best Buy Co. Inc.	1,625		60,726
Biogen Idec Inc.a	1,430		67,997
BJ Services Co.	1,365		19,356
Black & Decker Corp. (The)	325		12,220
BlackRock Inc.	78		14,862
BMC Software Inc.a	962		32,737
Boeing Co. (The)	3,432		147,267
BorgWarner Inc.	416		13,807
Boston Properties Inc.	494		26,133
Boston Scientific Corp.a	6,980		74,965
Bristol-Myers Squibb Co.	9,945		216,204
Broadcom Corp. Class Aa	2,093		59,085
Brown-Forman Corp. Class B NVS	533		23,425
Bunge Ltd.	650		45,481
Burlington Northern Santa Fe Corp.	1,729		135,882
C.H. Robinson Worldwide Inc.	741		40,407
C.R. Bard Inc.	520		38,256
CA Inc.	1,950		41,223
Cablevision NY Group Class A	1,183		24,216
Cabot Oil & Gas Corp.	494		17,354

110 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI KOKUSAI INDEX FUND

July 31, 2009

Security	Shares	Value
Calpine Corp.a	2,158	$	27,795
Cameron International Corp.a	1,014		31,667
Campbell Soup Co.	1,053		32,675
Capital One Financial Corp.	2,782		85,407
Cardinal Health Inc.	1,807		60,173
CarMax Inc.a	1,417		22,856
Carnival Corp.	2,067		57,855
Caterpillar Inc.	2,860		126,012
CBS Corp. Class B NVS	4,810		39,394
Celanese Corp. Series A	689		17,707
Celgene Corp.a	2,288		130,324
CenterPoint Energy Inc.	1,547		18,641
CenturyTel Inc.	1,122		35,220
Cephalon Inc.a,b	338		19,824
Cerner Corp.a	247		16,075
CF Industries Holdings Inc.	325		25,656
Charles River Laboratories International Inc.a	416		13,757
Charles Schwab Corp. (The)	5,590		99,893
Chesapeake Energy Corp.	3,211		68,844
Chevron Corp.	9,764		678,305
Chubb Corp.	1,729		79,845
Church & Dwight Co. Inc.	208		12,268
CIGNA Corp.	1,378		39,135
Cimarex Energy Co.	650		23,257
Cincinnati Financial Corp.	650		15,698
Cintas Corp.	780		19,640
Cisco Systems Inc.a	29,343		645,839
Citrix Systems Inc.a	897		31,933
Cliffs Natural Resources Inc.	793		21,720
Clorox Co. (The)	728		44,415
CME Group Inc.	352		98,148
Coach Inc.	1,456		43,083
Coca-Cola Co. (The)	10,283		512,505
Coca-Cola Enterprises Inc.	1,378		25,893
Cognizant Technology Solutions Corp. Class Aa	1,430		42,314
Colgate-Palmolive Co.	2,496		180,810
Comcast Corp. Class A	9,659		143,533
Comcast Corp. Class A Special	4,174		58,394
Comerica Inc.	1,105		26,343
Computer Sciences Corp.a	806		38,825

Security	Shares	Value
ConAgra Foods Inc.	2,366	$	46,445
ConocoPhillips	6,838		298,889
CONSOL Energy Inc.	1,053		37,413
Consolidated Edison Inc.	1,274		50,145
Constellation Brands Inc. Class Aa	1,508		20,599
Constellation Energy Group Inc.	871		24,998
Cooper Industries Ltd. Class A	1,001		32,983
Corning Inc.	7,787		132,379
Costco Wholesale Corp.	2,171		107,465
Covance Inc.a	416		22,942
Coventry Health Care Inc.a	754		17,342
Covidien PLC	2,444		92,408
Crown Castle International Corp.a	1,144		32,879
Crown Holdings Inc.a	320		8,032
CSX Corp.	2,444		98,053
Cummins Inc.	988		42,494
CVS Caremark Corp.	7,048		235,967
D.R. Horton Inc.	1,352		15,670
Danaher Corp.	1,144		70,059
Darden Restaurants Inc.	702		22,738
DaVita Inc.a	507		25,198
Dean Foods Co.a	1,001		21,211
Deere & Co.	2,210		96,665
Dell Inc.a	8,299		111,041
Delta Air Lines Inc.a	644		4,463
Denbury Resources Inc.a	1,300		21,580
DENTSPLY International Inc.	988		32,950
Devon Energy Corp.	2,080		120,827
DeVry Inc.	273		13,579
Diamond Offshore Drilling Inc.	325		29,208
DIRECTV Group Inc. (The)a,b	2,627		68,039
Discover Financial Services	3,107		36,911
Discovery Communications Inc. Class Aa	808		19,796
Discovery Communications Inc. Class Ca	808		18,099
Dish Network Corp. Class Aa	1,171		19,848
Dollar Tree Inc.a	325		14,989
Dominion Resources Inc.	2,847		96,229
Dover Corp.	962		32,718
Dow Chemical Co. (The)	5,863		124,120
Dr Pepper Snapple Group Inc.a	1,392		34,257

SCHEDULES OF INVESTMENTS 111

Schedule of Investments (Continued)

iSHARES^® MSCI KOKUSAI INDEX FUND

July 31, 2009

Security	Shares	Value
DST Systems Inc.a	299	$	13,255
DTE Energy Co.	1,092		37,630
Duke Energy Corp.	6,279		97,199
Duke Realty Corp.	1,521		14,434
Dun & Bradstreet Corp. (The)	286		20,589
E.I. du Pont de Nemours and Co.	4,615		142,742
Eastman Chemical Co.	429		21,304
Eaton Corp.	702		36,448
Eaton Vance Corp.	403		11,534
eBay Inc.a	5,356		113,815
Ecolab Inc.	923		38,314
Edison International	1,508		48,739
El Paso Corp.	3,471		34,918
Electronic Arts Inc.a	1,534		32,935
Eli Lilly and Co.	5,057		176,439
EMC Corp.a	9,997		150,555
Emerson Electric Co.	3,835		139,517
Energen Corp.	156		6,446
Energizer Holdings Inc.a	260		16,656
ENSCO International Inc.	689		26,106
Entergy Corp.	949		76,233
EOG Resources Inc.	1,248		92,389
EQT Corp.	702		26,943
Equifax Inc.	689		17,948
Equity Residential	1,404		33,696
Estee Lauder Companies Inc. (The) Class A	611		22,265
Everest Re Group Ltd.	403		32,329
Exelon Corp.	3,315		168,601
Expedia Inc.a	663		13,731
Expeditors International Washington Inc.	1,014		34,405
Express Scripts Inc.a	1,189		83,278
Exxon Mobil Corp.	24,129		1,698,440
Family Dollar Stores Inc.	795		24,979
Fastenal Co.	689		24,508
Federal Realty Investment Trust	299		17,058
FedEx Corp.	1,430		97,011
Fidelity National Financial Inc. Class A	1,166		16,732
Fidelity National Information Services Inc.	858		20,094
Fifth Third Bancorp	4,117		39,112

Security	Shares	Value
First American Corp.	325	$	9,604
First Solar Inc.a	243		37,517
FirstEnergy Corp.	1,495		61,594
Fiserv Inc.a	676		32,049
Flextronics International Ltd.a	5,122		27,249
FLIR Systems Inc.a	572		12,292
Flowserve Corp.	208		16,800
Fluor Corp.	832		43,930
FMC Corp.	80		3,891
FMC Technologies Inc.a	598		26,013
Ford Motor Co.a	13,910		111,280
Forest Laboratories Inc.a	1,365		35,258
Fortune Brands Inc.	702		27,778
Foster Wheeler AGa	988		22,823
FPL Group Inc.	1,872		106,086
Franklin Resources Inc.	1,014		89,922
Freeport-McMoRan Copper & Gold Inc.	2,106		126,992
FTI Consulting Inc.a	130		7,076
GameStop Corp. Class Aa	782		17,118
Gap Inc. (The)	2,847		46,463
Garmin Ltd.b	598		16,541
General Dynamics Corp.	1,703		94,329
General Mills Inc.	1,560		91,900
Genuine Parts Co.	949		33,614
Genzyme Corp.a	1,300		67,457
Gilead Sciences Inc.a	4,459		218,179
Goldman Sachs Group Inc. (The)	2,550		416,415
Goodrich Corp.	351		18,027
Goodyear Tire & Rubber Co. (The)a	1,612		27,436
Google Inc. Class Aa	1,196		529,888
H&R Block Inc.	1,508		25,169
H.J. Heinz Co.	1,482		56,998
Halliburton Co.	4,355		96,202
Hansen Natural Corp.a	390		12,094
Harley-Davidson Inc.	1,235		27,911
Harris Corp.	572		17,909
Harsco Corp.	416		11,444
Hasbro Inc.	975		25,838
HCP Inc.	1,066		27,460
Health Care REIT Inc.	143		5,729
Helmerich & Payne Inc.	546		18,761
Henry Schein Inc.a	169		8,683

112 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI KOKUSAI INDEX FUND

July 31, 2009

Security	Shares	Value
Hershey Co. (The)	689	$	27,526
Hess Corp.	1,469		81,089
Hewlett-Packard Co.	11,963		517,998
Hologic Inc.a	1,183		17,378
Home Depot Inc. (The)	8,372		217,170
Honeywell International Inc.	3,523		122,248
Hormel Foods Corp.	130		4,668
Hospira Inc.a	767		29,476
Hudson City Bancorp Inc.	2,522		35,459
Humana Inc.a	741		24,342
IHS Inc. Class Aa	221		11,037
Illinois Tool Works Inc.	2,288		92,778
Illumina Inc.a	559		20,202
IMS Health Inc.	1,144		13,728
Integrys Energy Group Inc.	572		19,322
Intel Corp.	27,771		534,592
IntercontinentalExchange Inc.a	351		33,015
International Business Machines Corp.	6,513		768,078
International Flavors & Fragrances Inc.	533		18,794
International Game Technology	1,651		32,607
International Paper Co.	2,208		41,532
Interpublic Group of Companies Inc. (The)a	2,899		15,104
Intuit Inc.a	1,534		45,560
Intuitive Surgical Inc.a	208		47,283
Invesco Ltd.	2,433		48,052
Iron Mountain Inc.a	819		23,923
ITT Corp.	780		38,532
ITT Educational Services Inc.a	195		18,983
J.B. Hunt Transport Services Inc.	169		4,724
J.C. Penney Co. Inc.	1,066		32,140
J.M. Smucker Co. (The)	520		26,016
Jacobs Engineering Group Inc.a	572		23,441
Jefferies Group Inc.a,b	507		11,590
Johnson & Johnson	13,446		818,727
Johnson Controls Inc.	2,977		77,045
Joy Global Inc.	510		18,962
JPMorgan Chase & Co.	19,006		734,582
Juniper Networks Inc.a	2,522		65,900
KBR Inc.	676		14,324
Kellogg Co.	1,235		58,663
KeyCorp	6,030		34,853

Security	Shares	Value
Kimberly-Clark Corp.	2,015	$	117,777
Kimco Realty Corp.	3,241		31,891
Kinder Morgan Management LLCa	270		12,685
KLA-Tencor Corp.	936		29,840
Kohl’s Corp.a	1,534		74,476
Kraft Foods Inc. Class A	7,384		209,263
Kroger Co. (The)	3,341		71,431
L-3 Communications Holdings Inc.	624		47,112
Laboratory Corp. of America Holdingsa	559		37,559
Lam Research Corp.a	624		18,757
Las Vegas Sands Corp.a	1,469		13,735
Legg Mason Inc.	1,118		31,461
Leggett & Platt Inc.	1,287		22,329
Lender Processing Services Inc.	364		12,442
Leucadia National Corp.a	2,145		52,553
Level 3 Communications Inc.a	10,553		12,980
Liberty Global Inc. Series Aa	923		19,337
Liberty Global Inc. Series Ca	832		17,339
Liberty Media Corp. – Liberty Entertainment Group Series Aa	7,285		203,761
Liberty Media Corp. – Liberty Interactive Group Series Aa	4,615		30,736
Life Technologies Corp.a	823		37,471
Limited Brands Inc.	1,794		23,214
Lincoln National Corp.	2,037		43,164
Linear Technology Corp.	1,053		28,294
Lockheed Martin Corp.	1,651		123,429
Loews Corp.	1,508		45,270
Lorillard Inc.	793		58,460
Lowe’s Companies Inc.	7,384		165,845
LSI Corp.a	3,432		17,778
M&T Bank Corp.b	481		28,052
Macy’s Inc.	2,184		30,379
Manpower Inc.	416		19,947
Marathon Oil Corp.	3,523		113,617
Marriott International Inc. Class A	1,449		31,211
Marsh & McLennan Companies Inc.	2,665		54,419
Martin Marietta Materials Inc.	195		16,784
Marvell Technology Group Ltd.a	2,483		33,123
Masco Corp.	1,950		27,164
MasterCard Inc. Class A	465		90,224
Mattel Inc.	1,937		34,052

SCHEDULES OF INVESTMENTS 113

Schedule of Investments (Continued)

iSHARES^® MSCI KOKUSAI INDEX FUND

July 31, 2009

Security	Shares	Value
Maxim Integrated Products Inc.	1,339	$	23,727
McAfee Inc.a	780		34,772
McCormick & Co. Inc. NVS	715		23,037
McDermott International Inc.a	2,119		41,405
McDonald’s Corp.	5,202		286,422
McGraw-Hill Companies Inc. (The)	1,716		53,797
McKesson Corp.	1,469		75,139
MDU Resources Group Inc.	585		11,776
MeadWestvaco Corp.	858		16,722
Medco Health Solutions Inc.a	2,457		129,877
Medtronic Inc.	5,616		198,919
MEMC Electronic Materials Inc.a	1,768		31,152
Merck & Co. Inc.	10,504		315,225
Metavante Technologies Inc.a	403		12,412
MetLife Inc.	4,251		144,321
MetroPCS Communications Inc.a	975		11,554
Microchip Technology Inc.	1,079		29,057
Micron Technology Inc.a	4,173		26,665
Microsoft Corp.	39,291		924,124
Millipore Corp.a	338		23,525
Mirant Corp.a	240		4,334
Mohawk Industries Inc.a	338		17,434
Molson Coors Brewing Co. Class B	611		27,623
Monsanto Co.	2,886		242,424
Moody’s Corp.	1,170		27,776
Morgan Stanley	6,434		183,369
Mosaic Co. (The)	1,119		58,356
Motorola Inc.	10,660		76,326
Murphy Oil Corp.	871		50,692
Mylan Inc.a,b	1,430		18,862
Myriad Genetics Inc.a	299		8,199
Nabors Industries Ltd.a	1,313		22,347
NASDAQ OMX Group Inc. (The)a	962		20,327
National Oilwell Varco Inc.a	2,081		74,791
National Semiconductor Corp.	1,352		20,361
NetApp Inc.a	1,807		40,585
New York Community Bancorp Inc.b	2,041		22,329
Newell Rubbermaid Inc.	1,261		16,229
Newfield Exploration Co.a	624		24,542
Newmont Mining Corp.	2,262		93,534
News Corp. Class A	10,101		104,343
News Corp. Class B	2,418		29,064
NII Holdings Inc.a	1,235		28,430

Security	Shares	Value
Nike Inc. Class B	1,820	$	103,085
NiSource Inc.	1,365		17,595
Noble Corp.	1,274		43,138
Noble Energy Inc.	819		50,057
Nordstrom Inc.b	689		18,217
Norfolk Southern Corp.	2,093		90,522
Northeast Utilities	455		10,470
Northern Trust Corp.	1,261		75,420
Northrop Grumman Corp.	1,625		72,443
NRG Energy Inc.a	1,378		37,495
NSTAR	273		8,763
Nuance Communications Inc.a	845		11,154
Nucor Corp.	1,521		67,639
NVIDIA Corp.a	2,977		38,493
NYSE Euronext Inc.	1,924		51,852
Occidental Petroleum Corp.	3,913		279,153
Old Republic International Corp.	1,625		16,803
Omnicare Inc.	546		13,033
Omnicom Group Inc.	1,508		51,272
ONEOK Inc.	234		7,745
Oracle Corp.	19,565		432,973
O’Reilly Automotive Inc.a	455		18,500
Owens-Illinois Inc.a	949		32,209
PACCAR Inc.	1,729		59,910
Pactiv Corp.a	273		6,874
Pall Corp.	663		19,943
Parker Hannifin Corp.	845		37,417
PartnerRe Ltd.	312		21,400
Patterson Companies Inc.a	793		20,110
Patterson-UTI Energy Inc.	507		7,002
Paychex Inc.	1,664		44,096
Peabody Energy Corp.	1,456		48,208
Pentair Inc.	754		20,599
People’s United Financial Inc.	2,522		40,983
Pepco Holdings Inc.	1,443		20,750
Pepsi Bottling Group Inc.	988		33,543
PepsiAmericas Inc.	137		3,669
PepsiCo Inc.	7,683		436,010
Perrigo Co.	312		8,468
Petrohawk Energy Corp.a	1,391		33,773
PetSmart Inc.	910		20,357
Pfizer Inc.	33,085		527,044
PG&E Corp.	1,755		70,849

114 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI KOKUSAI INDEX FUND

July 31, 2009

Security	Shares	Value
Pharmaceutical Product Development Inc.	494	$	10,260
Philip Morris International Inc.	9,893		461,014
Pinnacle West Capital Corp.	598		19,112
Pioneer Natural Resources Co.	572		16,331
Pitney Bowes Inc.	676		13,959
Plains Exploration & Production Co.a	507		14,526
Plum Creek Timber Co. Inc.	975		30,498
PNC Financial Services Group Inc. (The)	2,626		96,269
Polo Ralph Lauren Corp.	390		24,590
PPG Industries Inc.	819		45,045
PPL Corp.	1,846		62,376
Praxair Inc.	1,586		123,993
Precision Castparts Corp.	585		46,689
Priceline.com Inc.a,b	182		23,591
Pride International Inc.a	806		20,206
Principal Financial Group Inc.	1,963		46,523
Procter & Gamble Co. (The)	14,378		798,123
Progress Energy Inc.	1,508		59,476
Progressive Corp. (The)a	3,276		51,040
ProLogis	1,651		14,512
Prudential Financial Inc.	2,366		104,743
Public Service Enterprise Group Inc.	2,496		80,995
Public Storage	650		47,171
Pulte Homes Inc.b	663		7,538
QUALCOMM Inc.	8,125		375,456
Quanta Services Inc.a	754		17,576
Quest Diagnostics Inc.	806		44,024
Questar Corp.	832		27,514
Qwest Communications International Inc.	7,670		29,606
R.R. Donnelley & Sons Co.	975		13,553
Ralcorp Holdings Inc.a	195		12,384
Range Resources Corp.	754		34,993
Raytheon Co.	2,054		96,435
Red Hat Inc.a	819		18,698
Regency Centers Corp.	377		12,094
Regions Financial Corp.	9,490		41,946
RenaissanceRe Holdings Ltd.	442		22,211
Republic Services Inc.	1,053		28,010
Reynolds American Inc.	780		33,938
Robert Half International Inc.	767		19,014

Security	Shares	Value
Rockwell Automation Inc.	767	$	31,761
Rockwell Collins Inc.	806		34,013
Roper Industries Inc.	221		10,568
Ross Stores Inc.	689		30,378
Rowan Companies Inc.	702		14,974
Royal Caribbean Cruises Ltd.	728		10,571
Safeway Inc.	2,197		41,589
SAIC Inc.a	598		10,818
Salesforce.com Inc.a	468		20,283
SanDisk Corp.a	962		17,143
Sara Lee Corp.	3,328		35,410
SBA Communications Corp. Class Aa	403		10,514
SCANA Corp.	169		5,974
Schering-Plough Corp.	7,930		210,224
Schlumberger Ltd.	5,798		310,193
Scripps Networks Interactive Inc. Class A	351		11,330
Seagate Technology	2,769		33,339
Sealed Air Corp.	1,105		20,321
Sears Holdings Corp.a,b	286		18,973
SEI Investments Co.	819		15,479
Sempra Energy	1,183		62,025
Sherwin-Williams Co. (The)	533		30,781
Sigma-Aldrich Corp.	585		29,689
Simon Property Group Inc.	1,329		74,052
SLM Corp.a	3,354		29,817
Smith International Inc.	1,079		27,115
Southern Co.	3,861		121,235
Southwestern Energy Co.a	1,693		70,141
Spectra Energy Corp.	3,068		56,328
Sprint Nextel Corp.a	15,730		62,920
SPX Corp.	260		13,733
St. Jude Medical Inc.a	1,677		63,240
Stanley Works (The)	520		20,878
Staples Inc.	3,536		74,327
Starbucks Corp.a	3,458		61,207
Starwood Hotels & Resorts Worldwide Inc.	1,066		25,168
State Street Corp.	2,795		140,589
Stericycle Inc.a	208		10,650
Stryker Corp.	1,417		55,093
Sun Microsystems Inc.a	3,694		33,874

SCHEDULES OF INVESTMENTS 115

Schedule of Investments (Continued)

iSHARES^® MSCI KOKUSAI INDEX FUND

July 31, 2009

Security	Shares	Value
Sunoco Inc.	585	$	14,444
SunPower Corp. Class Aa,b	536		17,259
SunTrust Banks Inc.	2,330		45,435
SUPERVALU Inc.	1,040		15,423
Symantec Corp.a	3,978		59,392
Synopsys Inc.a	780		15,584
Sysco Corp.	3,003		71,351
T. Rowe Price Group Inc.	1,469		68,617
Target Corp.	3,435		149,835
TD AMERITRADE Holding Corp.a	1,326		24,584
Telephone and Data Systems Inc.	403		10,373
Teradata Corp.a	975		23,956
Texas Instruments Inc.	6,305		151,635
TFS Financial Corp.	312		3,463
Thermo Fisher Scientific Inc.a	2,080		94,182
3M Co.	3,575		252,109
Tiffany & Co.	676		20,165
Time Warner Cable Inc.	1,745		57,690
Time Warner Inc.	5,240		139,698
TJX Companies Inc. (The)	2,184		79,126
Toll Brothers Inc.a	897		17,545
Torchmark Corp.	379		14,804
Total System Services Inc.	1,131		16,603
Transocean Ltd.a	1,573		125,352
Travelers Companies Inc. (The)	2,873		123,740
Tyco Electronics Ltd.	2,431		52,194
Tyco International Ltd.	3,029		91,536
Tyson Foods Inc. Class A	1,703		19,465
U.S. Bancorp	10,686		218,101
Ultra Petroleum Corp.a	783		34,546
Union Pacific Corp.	2,691		154,786
United Parcel Service Inc. Class B	3,315		178,115
United States Steel Corp.	754		29,972
United Technologies Corp.	4,342		236,509
UnitedHealth Group Inc.	5,865		164,572
Unum Group	1,781		33,429
Urban Outfitters Inc.a	351		8,438
URS Corp.a	323		16,344
Valero Energy Corp.	2,730		49,140
Varian Medical Systems Inc.a	624		22,008
Ventas Inc.	676		23,863
VeriSign Inc.a	962		19,663
Verizon Communications Inc.	13,767		441,508

Security	Shares	Value
Vertex Pharmaceuticals Inc.a	767	$	27,620
VF Corp.	546		35,321
Viacom Inc. Class Ba	2,509		58,108
Virgin Media Inc.	1,482		15,487
Visa Inc. Class A	2,216		145,059
VMware Inc. Class Aa	338		10,894
Vornado Realty Trust	736		37,551
Vulcan Materials Co.	533		25,307
W.R. Berkley Corp.	845		19,629
W.W. Grainger Inc.	390		35,065
Walgreen Co.	4,927		152,983
Wal-Mart Stores Inc.	11,505		573,869
Walt Disney Co. (The)	8,580		215,530
Washington Post Co. (The) Class B	39		17,609
Waste Management Inc.	2,444		68,701
Waters Corp.a	494		24,824
Watson Pharmaceuticals Inc.a	124		4,307
Weatherford International Ltd.a	3,276		61,458
WellPoint Inc.a	2,496		131,389
Wells Fargo & Co.	21,971		537,411
Western Digital Corp.a	1,105		33,426
Western Union Co.	3,744		65,445
Weyerhaeuser Co.	1,222		42,819
Whirlpool Corp.	364		20,781
White Mountains Insurance Group Ltd.	52		13,416
Whole Foods Market Inc.a,b	702		16,981
Williams Companies Inc. (The)	2,964		49,469
Willis Group Holdings Ltd.	949		23,649
Windstream Corp.	2,275		19,952
Wisconsin Energy Corp.	533		22,903
Wyeth	6,500		302,575
Wynn Resorts Ltd.a,b	468		23,948
Xcel Energy Inc.	2,379		47,437
Xerox Corp.	4,212		34,496
Xilinx Inc.	1,456		31,581
XTO Energy Inc.	2,769		111,397
Yahoo! Inc.a	6,396		91,591
Yum! Brands Inc.	2,158		76,523
Zimmer Holdings Inc.a	1,170		54,522
			44,693,248
TOTAL COMMON STOCKS
(Cost: $86,455,376)			83,296,373

116 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI KOKUSAI INDEX FUND

July 31, 2009

Security	Shares	Value
PREFERRED STOCKS – 0.25%
GERMANY – 0.17%
Fresenius SE	312	$	17,596
Henkel AG & Co. KGaA	832		30,433
Porsche Automobil Holding SE	468		30,349
RWE AG NVS	221		15,597
Volkswagen AG	624		48,648
			142,623
ITALY – 0.08%
Intesa Sanpaolo SpA RNC	11,934		33,501
Telecom Italia SpA RNC	30,394		34,064
			67,565
TOTAL PREFERRED STOCKS
(Cost: $252,812)			210,188
RIGHTS – 0.00%
BELGIUM – 0.00%
Fortisa,c	2,148		1
			1
UNITED KINGDOM – 0.00%
Rexam PLCa	1,635		2,331
			2,331
TOTAL RIGHTS
(Cost: $0)			2,332
WARRANTS – 0.00%
ITALY – 0.00%
Unione di Banche Italiane ScpA (Expires 6/30/11)a	2,658		193
			193
TOTAL WARRANTS
(Cost: $0)			193

Security	Shares	Value
SHORT-TERM INVESTMENTS – 0.53%
MONEY MARKET FUNDS – 0.53%
Barclays Global Investors Funds Institutional Money Market Fund, SL Agency Shares 0.33%d,e,f	357,224	$	357,224
Barclays Global Investors Funds Prime Money Market Fund, SL Agency Shares 0.26%d,e,f	49,465		49,465
Barclays Global Investors Funds Treasury Money Market Fund, SL Agency Shares 0.12%d,e	35,225		35,225
			441,914
TOTAL SHORT-TERM INVESTMENTS
(Cost: $441,914)			441,914
TOTAL INVESTMENTS IN SECURITIES – 100.16% (Cost: $87,150,102)			83,951,000
Other Assets, Less Liabilities – (0.16)%			(133,204	)
NET ASSETS – 100.00%		$	83,817,796

NVS – Non-Voting Shares

SDR – Swedish 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 using Level 3 inputs. 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 All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 117

Statements of Assets and Liabilities

iSHARES^® TRUST

July 31, 2009

	iShares FTSE Developed Small Cap ex-North America Index Fund			iShares FTSE/Xinhua China 25 Index Fund			iShares FTSE China (HK Listed) Index Fund			iShares MSCI ACWI Index Fund
ASSETS
Investments, at cost:
Unaffiliated issuers	$	31,408,053		$	9,433,286,419		$	33,175,556		$	494,555,920
Affiliated issuers (Note 2)		229,814			808,059,731			1,752,319			7,007,125
Total cost of investments	$	31,637,867		$	10,241,346,150		$	34,927,875		$	501,563,045
Investments in securities, at fair value (including securities on loana) (Note 1):
Unaffiliated issuers	$	23,238,951		$	11,271,593,256		$	42,628,188		$	490,425,429
Affiliated issuers (Note 2)		229,814			808,059,731			1,752,319			7,067,365
Total fair value of investments		23,468,765			12,079,652,987			44,380,507			497,492,794
Foreign currencies, at valueb		67,079			21,828,893			52,131			321,735
Receivables:
Investment securities sold		11,340			–			–			–
Due from custodian (Note 4)		–			–			–			75,298
Dividends and interest		49,599			8,177,636			20,765			824,912
Capital shares sold		–			–			–			115,457
Total Assets		23,596,783			12,109,659,516			44,453,403			498,830,196
LIABILITIES
Payables:
Investment securities purchased		35,447			–			–			494,326
Collateral for securities on loan (Note 5)		225,366			802,837,603			1,720,978			5,385,861
Capital shares redeemed		–			16,431			–			–
Investment advisory fees (Note 2)		9,299			6,135,451			20,662			130,244
Total Liabilities		270,112			808,989,485			1,741,640			6,010,431
NET ASSETS	$	23,326,671		$	11,300,670,031		$	42,711,763		$	492,819,765
Net assets consist of:
Paid-in capital	$	33,391,176		$	10,975,659,584		$	34,249,494		$	504,295,434
Undistributed net investment income		44,279			39,628,852			74,140			952,403
Accumulated net realized loss		(1,940,603	)		(1,552,908,210	)		(1,065,121	)		(8,370,798	)
Net unrealized appreciation (depreciation) on investments and translation of assets and liabilities in foreign currencies		(8,168,181	)		1,838,289,805			9,453,250			(4,057,274	)
NET ASSETS	$	23,326,671		$	11,300,670,031		$	42,711,763		$	492,819,765
Shares outstandingc		800,000			268,200,000			900,000			13,100,000
Net asset value per share	$	29.16		$	42.14		$	47.46		$	37.62

^a Securities on loan with values of $220,818, $751,764,792, $1,552,827 and $5,185,370, respectively. See Note 5.

^b Cost of foreign currencies: $66,695, $21,849,285, $51,529 and $316,111, respectively.

^c No par value, unlimited number of shares authorized.

See notes to financial statements.

118 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities (Continued)

iSHARES^® TRUST

July 31, 2009

	iShares MSCI ACWI ex US Index Fund			iShares MSCI All Country Asia ex Japan Index Fund			iShares MSCI EAFE Growth Index Fund			iShares MSCI EAFE Value Index Fund
ASSETS
Investments, at cost:
Unaffiliated issuers	$	248,063,981		$	801,763,245		$	1,327,561,265		$	1,285,561,521
Affiliated issuers (Note 2)		4,288,018			90,957,541			15,947,606			27,556,771
Total cost of investments	$	252,351,999		$	892,720,786		$	1,343,508,871		$	1,313,118,292
Investments in securities, at fair value (including securities on loana) (Note 1): Unaffiliated issuers	$	268,451,701		$	1,027,005,230		$	1,195,244,128		$	1,124,779,959
Affiliated issuers (Note 2)		4,487,000			93,815,574			15,947,606			21,420,168
Total fair value of investments		272,938,701			1,120,820,804			1,211,191,734			1,146,200,127
Foreign currencies, at valueb		436,023			411,426			1,961,689			1,246,519
Receivables:
Investment securities sold		–			–			465			–
Due from custodian (Note 4)		–			2,438,816			–			–
Dividends and interest		740,932			4,427,998			2,709,440			2,738,788
Total Assets		274,115,656			1,128,099,044			1,215,863,328			1,150,185,434
LIABILITIES
Payables:
Investment securities purchased		183,056			2,454,461			1,055,560			–
Collateral for securities on loan (Note 5)		3,215,631			79,765,196			15,731,993			7,426,814
Investment advisory fees (Note 2)		74,176			532,616			379,867			357,756
Total Liabilities		3,472,863			82,752,273			17,167,420			7,784,570
NET ASSETS	$	270,642,793		$	1,045,346,771		$	1,198,695,908		$	1,142,400,864
Net assets consist of:
Paid-in capital	$	258,562,994		$	818,607,691		$	1,628,648,687		$	1,489,286,818
Undistributed net investment income		685,320			5,185,897			645,583			1,286,053
Accumulated net realized loss		(9,212,862	)		(6,553,057	)		(298,356,309	)		(181,309,452	)
Net unrealized appreciation (depreciation) on investments and translation of assets and liabilities in foreign currencies		20,607,341			228,106,240			(132,242,053	)		(166,862,555	)
NET ASSETS	$	270,642,793		$	1,045,346,771		$	1,198,695,908		$	1,142,400,864
Shares outstandingc		7,400,000			20,900,000			24,000,000			24,800,000
Net asset value per share	$	36.57		$	50.02		$	49.95		$	46.06

^a Securities on loan with values of $3,091,867, $73,947,215, $15,036,675 and $7,052,574, respectively. See Note 5.

^b Cost of foreign currencies: $431,345, $406,589, $1,921,890 and $1,236,329, respectively.

^c No par value, unlimited number of shares authorized.

See notes to financial statements.

FINANCIAL STATEMENTS 119

Statements of Assets and Liabilities (Continued)

iSHARES^® TRUST

July 31, 2009

	iShares MSCI EAFE Small Cap Index Fund			iShares MSCI Kokusai Index Fund
ASSETS
Investments, at cost:
Unaffiliated issuers	$	376,656,838		$	86,399,104
Affiliated issuers (Note 2)		16,487,283			750,998
Total cost of investments	$	393,144,121		$	87,150,102
Investments in securities, at fair value (including securities on loana) (Note 1):
Unaffiliated issuers	$	376,307,175		$	83,232,120
Affiliated issuers (Note 2)		16,487,283			718,880
Total fair value of investments		392,794,458			83,951,000
Foreign currencies, at valueb		1,163,975			103,477
Receivables:
Investment securities sold		623,750			–
Due from custodian (Note 4)		100,498			–
Dividends and interest		720,850			203,974
Capital shares sold		85,708			–
Total Assets		395,489,239			84,258,451
LIABILITIES
Payables:
Investment securities purchased		1,015,962			–
Collateral for securities on loan (Note 5)		16,364,513			406,689
Investment advisory fees (Note 2)		110,165			33,966
Total Liabilities		17,490,640			440,655
NET ASSETS	$	377,998,599		$	83,817,796
Net assets consist of:
Paid-in capital	$	394,392,374		$	88,738,336
Undistributed net investment income		870,428			215,556
Accumulated net realized loss		(16,926,516	)		(1,941,302	)
Net unrealized depreciation on investments and translation of assets and liabilities in foreign currencies		(337,687	)		(3,194,794	)
NET ASSETS	$	377,998,599		$	83,817,796
Shares outstandingc		11,800,000			2,600,000
Net asset value per share	$	32.03		$	32.24

^a Securities on loan with values of $15,644,557 and $394,717, respectively. See Note 5.

^b Cost of foreign currencies: $1,159,136 and $102,738, respectively.

^c No par value, unlimited number of shares authorized.

See notes to financial statements.

120 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations

iSHARES^® TRUST

Year ended July 31, 2009

	iShares FTSE Developed Small Cap ex-North America Index Fund			iShares FTSE/Xinhua China 25 Index Fund			iShares FTSE China (HK Listed) Index Fund			iShares MSCI ACWI Index Fund
NET INVESTMENT INCOME
Dividends from unaffiliated issuersa	$	596,460		$	191,015,096		$	473,088		$	6,511,641
Dividends from affiliated issuers (Note 2)		–			–			–			9,201
Interest from affiliated issuers (Note 2)		28			22,321			17			760
Securities lending income from affiliated issuers (Note 2)		12,884			10,999,266			5,499			69,815
Total investment income		609,372			202,036,683			478,604			6,591,417
EXPENSES
Investment advisory fees (Note 2)		97,038			48,140,087			94,034			807,337
Foreign taxes (Note 1)		–			–			–			1,220
Total expenses		97,038			48,140,087			94,034			808,557
Net investment income		512,334			153,896,596			384,570			5,782,860
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments in unaffiliated issuers		(1,700,953	)		(1,908,075,651	)		(1,061,999	)		(8,731,019	)
Investments in affiliated issuers (Note 2)		–			–			–			(14,866	)
In-kind redemptions		–			78,216,276			–			1,247,829
Foreign currency transactions		(12,115	)		(84,024	)		920			16,253
Net realized loss		(1,713,068	)		(1,829,943,399	)		(1,061,079	)		(7,481,803	)
Net change in unrealized appreciation (depreciation) on:
Investments		(5,080,226	)		2,279,784,792			9,384,298			3,192,963
Translation of assets and liabilities in foreign currencies		1,355			(19,102	)		618			12,465
Net change in unrealized appreciation (depreciation)		(5,078,871	)		2,279,765,690			9,384,916			3,205,428
Net realized and unrealized gain (loss)		(6,791,939	)		449,822,291			8,323,837			(4,276,375	)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	(6,279,605	)	$	603,718,887		$	8,708,407		$	1,506,485

^a Net of foreign withholding tax of $45,755, $16,456,990, $44,974 and $433,901, respectively.

See notes to financial statements.

FINANCIAL STATEMENTS 121

Statements of Operations (Continued)

iSHARES^® TRUST

Year ended July 31, 2009

	iShares MSCI ACWI ex US Index Fund			iShares MSCI All Country Asia ex Japan Index Funda			iShares MSCI EAFE Growth Index Fund			iShares MSCI EAFE Value Index Fund
NET INVESTMENT INCOME
Dividends from unaffiliated issuersb	$	6,214,687		$	11,520,808		$	28,648,090		$	36,760,629
Dividends from affiliated issuers (Note 2)		6,440			301,040			–			272,557
Interest from affiliated issuers (Note 2)		198			469			1,547			1,279
Securities lending income from affiliated issuers (Note 2)		26,343			61,867			285,023			240,277
Total investment income		6,247,668			11,884,184			28,934,660			37,274,742
EXPENSES
Investment advisory fees (Note 2)		625,701			2,495,039			4,071,198			3,559,419
Foreign taxes (Note 1)		4,402			–			34,653			–
Total expenses		630,103			2,495,039			4,105,851			3,559,419
Less:
Investment advisory fees waived (Note 2)		–			(34,292	)		–			–
Net expenses		630,103			2,460,747			4,105,851			3,559,419
Net investment income		5,617,565			9,423,437			24,828,809			33,715,323
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments in unaffiliated issuers		(9,442,972	)		(6,573,482	)		(279,364,208	)		(156,387,228	)
Investments in affiliated issuers (Note 2)		(59,841	)		(269,492	)		–			(679,509	)
In-kind redemptions		(5,899,399	)		22,420,547			(3,822,012	)		(6,594,801	)
Foreign currency transactions		81,698			51,040			(2,237	)		(97,095	)
Net realized gain (loss)		(15,320,514	)		15,628,613			(283,188,457	)		(163,758,633	)
Net change in unrealized appreciation (depreciation) on:
Investments		22,452,353			228,100,018			(73,823,817	)		(11,804,364	)
Translation of assets and liabilities in foreign currencies		20,379			6,222			84,624			38,957
Net change in unrealized appreciation (depreciation)		22,472,732			228,106,240			(73,739,193	)		(11,765,407	)
Net realized and unrealized gain (loss)		7,152,218			243,734,853			(356,927,650	)		(175,524,040	)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	12,769,783		$	253,158,290		$	(332,098,841	)	$	(141,808,717	)

^a For the period from August 13, 2008 (commencement of operations) to July 31, 2009.

^b Net of foreign withholding tax of $639,216, $1,497,827, $2,405,128 and $3,424,519, respectively.

See notes to financial statements.

122 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations (Continued)

iSHARES^® TRUST

Year ended July 31, 2009

	iShares MSCI EAFE Small Cap Index Fund			iShares MSCI Kokusai Index Fund
NET INVESTMENT INCOME
Dividends from unaffiliated issuersa	$	6,682,778		$	2,943,024
Dividends from affiliated issuers (Note 2)		–			3,374
Interest from affiliated issuers (Note 2)		394			248
Securities lending income from affiliated issuers (Note 2)		170,582			35,043
Total investment income		6,853,754			2,981,689
EXPENSES
Investment advisory fees (Note 2)		866,355			254,837
Foreign taxes (Note 1)		–			836
Total expenses		866,355			255,673
Net investment income		5,987,399			2,726,016
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments in unaffiliated issuers		(17,016,527	)		(4,473,118	)
Investments in affiliated issuers (Note 2)		–			153,586
In-kind redemptions		9,154,377			40,557,972
Foreign currency transactions		(98,748	)		26,683
Net realized gain (loss)		(7,960,898	)		36,265,123
Net change in unrealized appreciation (depreciation) on:
Investments		10,370,932			1,878,440
Translation of assets and liabilities in foreign currencies		14,932			4,378
Net change in unrealized appreciation (depreciation)		10,385,864			1,882,818
Net realized and unrealized gain		2,424,966			38,147,941
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	8,412,365		$	40,873,957

^a Net of foreign withholding tax of $553,075 and $158,366, respectively.

See notes to financial statements.

FINANCIAL STATEMENTS 123

Statements of Changes in Net Assets

iSHARES^® TRUST

	iShares FTSE Developed Small Cap ex-North America Index Fund						iShares FTSE/Xinhua China 25 Index Fund
	Year ended July 31, 2009			Period from November 12, 2007a to July 31, 2008			Year ended July 31, 2009			Year ended July 31, 2008
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	512,334		$	364,986		$	153,896,596		$	115,428,549
Net realized gain (loss)		(1,713,068	)		(232,835	)		(1,829,943,399	)		2,260,227,726
Net change in unrealized appreciation (depreciation)		(5,078,871	)		(3,089,310	)		2,279,765,690			(2,324,448,542	)
Net increase (decrease) in net assets resulting from operations		(6,279,605	)		(2,957,159	)		603,718,887			51,207,733
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(529,454	)		(298,287	)		(127,160,014	)		(154,639,327	)
Total distributions to shareholders		(529,454	)		(298,287	)		(127,160,014	)		(154,639,327	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		6,778,825			26,612,351			7,989,061,958			7,277,657,443
Cost of shares redeemed		–			–			(3,843,313,014	)		(6,346,722,216	)
Net increase in net assets from capital share transactions		6,778,825			26,612,351			4,145,748,944			930,935,227
INCREASE (DECREASE) IN NET ASSETS		(30,234	)		23,356,905			4,622,307,817			827,503,633
NET ASSETS
Beginning of period		23,356,905			–			6,678,362,214			5,850,858,581
End of period	$	23,326,671		$	23,356,905		$	11,300,670,031		$	6,678,362,214
Undistributed net investment income included in net assets at end of period	$	44,279		$	70,704		$	39,628,852		$	12,976,294
SHARES ISSUED AND REDEEMED
Shares sold		200,000			600,000			258,600,000			144,000,000
Shares redeemed		–			–			(137,250,000	)		(121,650,000	)
Net increase in shares outstanding		200,000			600,000			121,350,000			22,350,000

^a Commencement of operations.

See notes to financial statements.

124 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^® TRUST

	iShares FTSE China (HK Listed) Index Fund						iShares MSCI ACWI Index Fund
	Year ended July 31, 2009			Period from June 24, 2008a to July 31, 2008			Year ended July 31, 2009			Period from March 26, 2008a to July 31, 2008
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss)	$	384,570		$	(1,719	)	$	5,782,860		$	391,819
Net realized gain (loss)		(1,061,079	)		(3,122	)		(7,481,803	)		288,994
Net change in unrealized appreciation (depreciation)		9,384,916			68,334			3,205,428			(7,262,702	)
Net increase (decrease) in net assets resulting from operations		8,708,407			63,493			1,506,485			(6,581,889	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(311,435	)		–			(5,240,306	)		–
Total distributions to shareholders		(311,435	)		–			(5,240,306	)		–
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		29,350,412			4,900,886			512,754,342			165,198,479
Cost of shares redeemed		–			–			(169,464,676	)		(5,352,670	)
Net increase in net assets from capital share transactions		29,350,412			4,900,886			343,289,666			159,845,809
INCREASE IN NET ASSETS		37,747,384			4,964,379			339,555,845			153,263,920
NET ASSETS
Beginning of period		4,964,379			–			153,263,920			–
End of period	$	42,711,763		$	4,964,379		$	492,819,765		$	153,263,920
Undistributed net investment income included in net assets at end of period	$	74,140		$	85		$	952,403		$	392,307
SHARES ISSUED AND REDEEMED
Shares sold		800,000			100,000			15,400,000			3,300,000
Shares redeemed		–			–			(5,500,000	)		(100,000	)
Net increase in shares outstanding		800,000			100,000			9,900,000			3,200,000

^a Commencement of operations.

See notes to financial statements.

FINANCIAL STATEMENTS 125

Statements of Changes in Net Assets (Continued)

iSHARES^® TRUST

	iShares MSCI ACWI ex US Index Fund						iShares MSCI All Country Asia ex Japan Index Fund
	Year ended July 31, 2009			Period from March 26, 2008a to July 31, 2008			Period from August 13, 2008a to July 31, 2009
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	5,617,565		$	249,381		$	9,423,437
Net realized gain (loss)		(15,320,514	)		(54,449	)		15,628,613
Net change in unrealized appreciation (depreciation)		22,472,732			(1,865,391	)		228,106,240
Net increase (decrease) in net assets resulting from operations		12,769,783			(1,670,459	)		253,158,290
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(5,263,263	)		–			(4,289,082	)
Total distributions to shareholders		(5,263,263	)		–			(4,289,082	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		271,841,593			50,020,881			963,409,716
Cost of shares redeemed		(57,055,742	)		–			(166,932,153	)
Net increase in net assets from capital share transactions		214,785,851			50,020,881			796,477,563
INCREASE IN NET ASSETS		222,292,371			48,350,422			1,045,346,771
NET ASSETS
Beginning of period		48,350,422			–			–
End of period	$	270,642,793		$	48,350,422		$	1,045,346,771
Undistributed net investment income included in net assets at end of period	$	685,320		$	249,117		$	5,185,897
SHARES ISSUED AND REDEEMED
Shares sold		8,800,000			1,000,000			26,100,000
Shares redeemed		(2,400,000	)		–			(5,200,000	)
Net increase in shares outstanding		6,400,000			1,000,000			20,900,000

^a Commencement of operations.

See notes to financial statements.

126 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^® TRUST

	iShares MSCI EAFE Growth Index Fund						iShares MSCI EAFE Value Index Fund
	Year ended July 31, 2009			Year ended July 31, 2008			Year ended July 31, 2009			Year ended July 31, 2008
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	24,828,809		$	24,794,767		$	33,715,323		$	42,888,553
Net realized gain (loss)		(283,188,457	)		(9,057,776	)		(163,758,633	)		7,303,253
Net change in unrealized appreciation (depreciation)		(73,739,193	)		(141,921,894	)		(11,765,407	)		(255,977,545	)
Net decrease in net assets resulting from operations		(332,098,841	)		(126,184,903	)		(141,808,717	)		(205,785,739	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(27,879,748	)		(27,818,266	)		(33,575,451	)		(61,663,569	)
From net realized gain		–			(332,580	)		–			(15,065,069	)
Total distributions to shareholders		(27,879,748	)		(28,150,846	)		(33,575,451	)		(76,728,638	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		259,018,581			1,016,117,996			524,040,578			187,032,387
Cost of shares redeemed		(41,339,520	)		(32,941,055	)		(130,702,410	)		(176,728,883	)
Net increase in net assets from capital share transactions		217,679,061			983,176,941			393,338,168			10,303,504
INCREASE (DECREASE) IN NET ASSETS		(142,299,528	)		828,841,192			217,954,000			(272,210,873	)
NET ASSETS
Beginning of year		1,340,995,436			512,154,244			924,446,864			1,196,657,737
End of year	$	1,198,695,908		$	1,340,995,436		$	1,142,400,864		$	924,446,864
Undistributed net investment income included in net assets at end of year	$	645,583		$	3,641,392		$	1,286,053		$	1,127,986
SHARES ISSUED AND REDEEMED
Shares sold		5,600,000			13,200,000			13,200,000			2,400,000
Shares redeemed		(1,200,000	)		(400,000	)		(4,000,000	)		(2,400,000	)
Net increase in shares outstanding		4,400,000			12,800,000			9,200,000			–

See notes to financial statements.

FINANCIAL STATEMENTS 127

Statements of Changes in Net Assets (Continued)

iSHARES^® TRUST

	iShares MSCI EAFE Small Cap Index Fund						iShares MSCI Kokusai Index Fund
	Year ended July 31, 2009			Period from December 10, 2007a to July 31, 2008			Year ended July 31, 2009			Period from December 10, 2007a to July 31, 2008
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	5,987,399		$	1,002,500		$	2,726,016		$	352,390
Net realized gain (loss)		(7,960,898	)		(611,658	)		36,265,123			152,789
Net change in unrealized appreciation (depreciation)		10,385,864			(10,723,551	)		1,882,818			(5,077,612	)
Net increase (decrease) in net assets resulting from operations		8,412,365			(10,332,709	)		40,873,957			(4,572,433	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(5,582,744	)		(728,089	)		(2,676,486	)		(214,409	)
Total distributions to shareholders		(5,582,744	)		(728,089	)		(2,676,486	)		(214,409	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		284,900,940			166,993,798			523,297,727			64,075,315
Cost of shares redeemed		(65,664,962	)		–			(520,026,309	)		(16,939,566	)
Net increase in net assets from capital share transactions		219,235,978			166,993,798			3,271,418			47,135,749
INCREASE IN NET ASSETS		222,065,599			155,933,000			41,468,889			42,348,907
NET ASSETS
Beginning of period		155,933,000			–			42,348,907			–
End of period	$	377,998,599		$	155,933,000		$	83,817,796		$	42,348,907
Undistributed net investment income included in net assets at end of period	$	870,428		$	295,874		$	215,556		$	137,725
SHARES ISSUED AND REDEEMED
Shares sold		10,600,000			3,800,000			20,000,000			1,400,000
Shares redeemed		(2,600,000	)		–			(18,400,000	)		(400,000	)
Net increase in shares outstanding		8,000,000			3,800,000			1,600,000			1,000,000

^a Commencement of operations.

See notes to financial statements.

128 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares FTSE Developed Small Cap ex-North America Index Fund
	Year ended Jul. 31, 2009			Period from Nov. 12, 2007a to Jul. 31, 2008
Net asset value, beginning of period	$	38.93		$	48.85
Income from investment operations:
Net investment incomeb		0.67			0.96
Net realized and unrealized lossc		(9.78	)		(10.09	)
Total from investment operations		(9.11	)		(9.13	)
Less distributions from:
Net investment income		(0.66	)		(0.79	)
Total distributions		(0.66	)		(0.79	)
Net asset value, end of period	$	29.16		$	38.93
Total return		(23.06	)%		(18.78	)%d
Ratios/Supplemental data:
Net assets, end of period (000s)	$	23,327		$	23,357
Ratio of expenses to average net assetse		0.50	%		0.50	%
Ratio of net investment income to average net assetse		2.64	%		3.13	%
Portfolio turnover ratef		17	%		10	%

^a Commencement of operations.

^b Based on average shares outstanding throughout each period.

^c The amounts reported may not accord with the change in aggregate gains and losses in securities due to the timing of capital share transactions.

^d Not annualized.

^e Annualized for periods of less than one year.

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

See notes to financial statements.

FINANCIAL HIGHLIGHTS 129

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares FTSE/Xinhua China 25 Index Fund
	Year ended Jul. 31, 2009			Year ended Jul. 31, 2008b			Year ended Jul. 31, 2007b			Year ended Jul. 31, 2006b			Period from Oct. 5, 2004a to Jul. 31, 2005b
Net asset value, beginning of period	$	45.48		$	46.99		$	26.05		$	20.47		$	17.87
Income from investment operations:
Net investment income		0.75	c		0.92	c		0.59	c		0.61	c		0.33
Net realized and unrealized gain (loss)d		(3.56	)		(1.17	)		20.79			5.39			2.27
Total from investment operations		(2.81	)		(0.25	)		21.38			6.00			2.60
Less distributions from:
Net investment income		(0.53	)		(1.26	)		(0.44	)		(0.42	)		–
Total distributions		(0.53	)		(1.26	)		(0.44	)		(0.42	)		–
Net asset value, end of period	$	42.14		$	45.48		$	46.99		$	26.05		$	20.47
Total return		(5.86	)%		(0.85	)%		82.72	%		29.81	%		14.57	%e
Ratios/Supplemental data:
Net assets, end of period (000s)	$	11,300,670		$	6,678,362		$	5,850,859		$	2,973,412		$	1,000,952
Ratio of expenses to average net assetsf		0.73	%		0.74	%		0.74	%		0.74	%		0.78	%
Ratio of net investment income to average net assetsf		2.33	%		1.76	%		1.74	%		2.62	%		2.97	%
Portfolio turnover rateg		44	%		24	%		36	%		45	%		13	%

^a Commencement of operations.

^b Per share amounts were adjusted to reflect a three-for-one stock split effective July 24, 2008.

^c Based on average shares outstanding throughout the period.

^d The amounts reported may not accord with the change in aggregate gains and losses in securities due to the timing of capital share transactions.

^e Not annualized.

^f Annualized for periods of less than one year.

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

See notes to financial statements.

130 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares FTSE China (HK Listed) Index Fund
	Year ended Jul. 31, 2009			Period from Jun. 24, 2008a to Jul. 31, 2008
Net asset value, beginning of period	$	49.64		$	49.01
Income from investment operations:
Net investment income (loss)b		1.11			(0.02	)
Net realized and unrealized gain (loss)c		(2.81	)		0.65
Total from investment operations		(1.70	)		0.63
Less distributions from:
Net investment income		(0.48	)		–
Total distributions		(0.48	)		–
Net asset value, end of period	$	47.46		$	49.64
Total return		(3.26	)%		1.29	%d
Ratios/Supplemental data:
Net assets, end of period (000s)	$	42,712		$	4,964
Ratio of expenses to average net assetse		0.72	%		0.74	%
Ratio of net investment income (loss) to average net assetse		2.96	%		(0.35	)%
Portfolio turnover ratef		24	%		1	%

^a Commencement of operations.

^b Based on average shares outstanding throughout each period.

^c The amounts reported may not accord with the change in aggregate gains and losses in securities due to the timing of capital share transactions.

^d Not annualized.

^e Annualized for periods of less than one year.

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

See notes to financial statements.

FINANCIAL HIGHLIGHTS 131

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares MSCI ACWI Index Fund
	Year ended Jul. 31, 2009			Period from Mar. 26, 2008a to Jul. 31, 2008
Net asset value, beginning of period	$	47.89		$	49.93
Income from investment operations:
Net investment incomeb		0.82			0.39
Net realized and unrealized lossc		(10.63	)		(2.43	)
Total from investment operations		(9.81	)		(2.04	)
Less distributions from:
Net investment income		(0.46	)		–
Total distributions		(0.46	)		–
Net asset value, end of period	$	37.62		$	47.89
Total return		(20.31	)%		(4.09	)%d
Ratios/Supplemental data:
Net assets, end of period (000s)	$	492,820		$	153,264
Ratio of expenses to average net assetse		0.35	%		0.35	%
Ratio of expenses to average net assets exclusive of foreign taxes		0.35	%		n/a
Ratio of net investment income to average net assetse		2.50	%		2.25	%
Portfolio turnover ratef		5	%		2	%

^a Commencement of operations.

^b Based on average shares outstanding throughout each period.

^c The amounts reported may not accord with the change in aggregate gains and losses in securities due to the timing of capital share transactions.

^d Not annualized.

^e Annualized for periods of less than one year.

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

See notes to financial statements.

132 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares MSCI ACWI ex US Index Fund
	Year ended Jul. 31, 2009			Period from Mar. 26, 2008a to Jul. 31, 2008
Net asset value, beginning of period	$	48.35		$	50.15
Income from investment operations:
Net investment incomeb		0.94			0.68
Net realized and unrealized lossc		(12.03	)		(2.48	)
Total from investment operations		(11.09	)		(1.80	)
Less distributions from:
Net investment income		(0.69	)		–
Total distributions		(0.69	)		–
Net asset value, end of period	$	36.57		$	48.35
Total return		(22.70	)%		(3.59	)%d
Ratios/Supplemental data:
Net assets, end of period (000s)	$	270,643		$	48,350
Ratio of expenses to average net assetse		0.35	%		0.35	%
Ratio of expenses to average net assets exclusive of foreign taxes		0.35	%		n/a
Ratio of net investment income to average net assetse		3.14	%		3.79	%
Portfolio turnover ratef		7	%		2	%

^a Commencement of operations.

^b Based on average shares outstanding throughout each period.

^c The amounts reported may not accord with the change in aggregate gains and losses in securities due to the timing of capital share transactions.

^d Not annualized.

^e Annualized for periods of less than one year.

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

See notes to financial statements.

FINANCIAL HIGHLIGHTS 133

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout the period)

	iShares MSCI All Country Asia ex Japan Index Fund
	Period from Aug. 13, 2008a to Jul. 31, 2009
Net asset value, beginning of period	$	49.77
Income from investment operations:
Net investment incomeb		0.98
Net realized and unrealized lossc		(0.47	)
Total from investment operations		0.51
Less distributions from:
Net investment income		(0.26	)
Total distributions		(0.26	)
Net asset value, end of period	$	50.02
Total return		1.17	%d
Ratios/Supplemental data:
Net assets, end of period (000s)	$	1,045,347
Ratio of expenses to average net assets prior to waive feese		0.72	%
Ratio of expenses to average net assets after waived feese		0.71	%
Ratio of net investment income to average net assetse		2.71	%
Portfolio turnover ratef		6	%

^a Commencement of operations.

^b Based on average shares outstanding throughout the period.

^c The amount reported may not accord with the change in aggregate gains and losses in securities due to the timing of capital share transactions.

^d Not annualized.

^e Annualized for periods of less than one year.

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

See notes to financial statements.

134 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares MSCI EAFE Growth Index Fund
	Year ended Jul. 31, 2009			Year ended Jul. 31, 2008			Year ended Jul. 31, 2007			Period from Aug. 1, 2005a to Jul. 31, 2006
Net asset value, beginning of period	$	68.42		$	75.32		$	61.72		$	50.88
Income from investment operations:
Net investment incomeb		1.12			1.70			1.35			1.34
Net realized and unrealized gain (loss)c		(18.41	)		(6.97	)		12.94			9.73
Total from investment operations		(17.29	)		(5.27	)		14.29			11.07
Less distributions from:
Net investment income		(1.18	)		(1.61	)		(0.69	)		(0.23	)
Net realized gain		–			(0.02	)		–			–
Total distributions		(1.18	)		(1.63	)		(0.69	)		(0.23	)
Net asset value, end of period	$	49.95		$	68.42		$	75.32		$	61.72
Total return		(25.03	)%		(7.11	)%		23.28	%		21.80	%d
Ratios/Supplemental data:
Net assets, end of period (000s)	$	1,198,696		$	1,340,995		$	512,154		$	246,864
Ratio of expenses to average net assetse		0.40	%		0.40	%		0.40	%		0.40	%
Ratio of expenses to average net assets exclusive of foreign taxes		0.40	%		n/a			n/a			n/a
Ratio of net investment income to average net assetse		2.44	%		2.30	%		1.93	%		2.25	%
Portfolio turnover ratef		33	%		37	%		28	%		35	%

^a Commencement of operations.

^b Based on average shares outstanding throughout each period.

^c The amounts reported may not accord with the change in aggregate gains and losses in securities due to the timing of capital share transactions.

^d Not annualized.

^e Annualized for periods of less than one year.

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

See notes to financial statements.

FINANCIAL HIGHLIGHTS 135

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares MSCI EAFE Value Index Fund
	Year ended Jul. 31, 2009			Year ended Jul. 31, 2008			Year ended Jul. 31, 2007			Period from Aug. 1, 2005a to Jul. 31, 2006
Net asset value, beginning of period	$	59.26		$	76.71		$	63.05		$	51.00
Income from investment operations:
Net investment incomeb		1.53			2.72			2.16			2.61
Net realized and unrealized gain (loss)c		(13.43	)		(15.42	)		12.69			9.69
Total from investment operations		(11.90	)		(12.70	)		14.85			12.30
Less distributions from:
Net investment income		(1.30	)		(3.83	)		(1.19	)		(0.25	)
Net realized gain		–			(0.92	)		–			–
Total distributions		(1.30	)		(4.75	)		(1.19	)		(0.25	)
Net asset value, end of period	$	46.06		$	59.26		$	76.71		$	63.05
Total return		(19.73	)%		(17.21	)%		23.70	%		24.18	%d
Ratios/Supplemental data:
Net assets, end of period (000s)	$	1,142,401		$	924,447		$	1,196,658		$	353,106
Ratio of expenses to average net assetse		0.40	%		0.40	%		0.40	%		0.40	%
Ratio of net investment income to average net assetse		3.79	%		3.88	%		2.95	%		4.34	%
Portfolio turnover ratef		35	%		28	%		21	%		31	%

^a Commencement of operations.

^b Based on average shares outstanding throughout each period.

^c The amounts reported may not accord with the change in aggregate gains and losses in securities due to the timing of capital share transactions.

^d Not annualized.

^e Annualized for periods of less than one year.

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

See notes to financial statements.

136 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares MSCI EAFE Small Cap Index Fund
	Year ended Jul. 31, 2009			Period from Dec. 10, 2007a to Jul. 31, 2008
Net asset value, beginning of period	$	41.04		$	50.70
Income from investment operations:
Net investment incomeb		0.74			0.87
Net realized and unrealized lossc		(9.19	)		(9.98	)
Total from investment operations		(8.45	)		(9.11	)
Less distributions from:
Net investment income		(0.56	)		(0.55	)
Total distributions		(0.56	)		(0.55	)
Net asset value, end of period	$	32.03		$	41.04
Total return		(20.31	)%		(18.03	)%d
Ratios/Supplemental data:
Net assets, end of period (000s)	$	377,999		$	155,933
Ratio of expenses to average net assetse		0.40	%		0.40	%
Ratio of net investment income to average net assetse		2.76	%		3.10	%
Portfolio turnover ratef		23	%		15	%

^a Commencement of operations.

^b Based on average shares outstanding throughout each period.

^c The amounts reported may not accord with the change in aggregate gains and losses in securities due to the timing of capital share transactions.

^d Not annualized.

^e Annualized for periods of less than one year.

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

See notes to financial statements.

FINANCIAL HIGHLIGHTS 137

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares MSCI Kokusai Index Fund
	Year ended Jul. 31, 2009			Period from Dec. 10, 2007a to Jul. 31, 2008
Net asset value, beginning of period	$	42.35		$	50.29
Income from investment operations:
Net investment incomeb		0.74			0.76
Net realized and unrealized lossc		(9.98	)		(8.49	)
Total from investment operations		(9.24	)		(7.73	)
Less distributions from:
Net investment income		(0.87	)		(0.21	)
Total distributions		(0.87	)		(0.21	)
Net asset value, end of period	$	32.24		$	42.35
Total return		(21.54	)%		(15.40	)%d
Ratios/Supplemental data:
Net assets, end of period (000s)	$	83,818		$	42,349
Ratio of expenses to average net assetse		0.25	%		0.25	%
Ratio of expenses to average net assets exclusive of foreign taxes		0.25	%		n/a
Ratio of net investment income to average net assetse		2.67	%		2.67	%
Portfolio turnover ratef		14	%		2	%

^a Commencement of operations.

^b Based on average shares outstanding throughout each period.

^c The amounts reported may not accord with the change in aggregate gains and losses in securities due to the timing of capital share transactions.

^d Not annualized.

^e Annualized for periods of less than one year.

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

See notes to financial statements.

138 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements

iSHARES^® TRUST

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.

These financial statements relate only to the iShares FTSE Developed Small Cap ex-North America, iShares FTSE/Xinhua China 25, iShares FTSE China (HK Listed), iShares MSCI ACWI, iShares MSCI ACWI ex US, iShares MSCI All Country Asia ex Japan, iShares MSCI EAFE Growth, iShares MSCI EAFE Value, iShares MSCI EAFE Small Cap and iShares MSCI Kokusai Index Funds (each, a “Fund,” collectively, the “Funds”). The iShares MSCI All Country Asia ex Japan Index Fund commenced operations on August 13, 2008.

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.

1. SIGNIFICANT ACCOUNTING POLICIES

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”). 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.

SECURITY VALUATION

The securities and other assets of each Fund are valued pursuant to the pricing policy and procedures approved by the Board of Trustees of the Trust (the “Board”). Effective August 1, 2008, the Funds adopted Financial Accounting Standards Board (“FASB”) Statement of Financial Accounting Standards No. 157 (“FAS 157”), “Fair Value Measurements.” This standard establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. Inputs may be based on independent market data (“observable inputs”) or they may be internally developed (“unobservable inputs”). The hierarchy gives the highest priority to

NOTES TO FINANCIAL STATEMENTS 139

Notes to Financial Statements (Continued)

iSHARES^® TRUST

unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under FAS 157 are as follows:

• Level 1 – Inputs that reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access at the measurement date (a “Level 1 Price”);

• Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived principally from or corroborated by observable market data by correlation or other means (a “Level 2 Price”);

• Level 3 – Inputs that are unobservable for the asset or liability (a “Level 3 Price”).

The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. Inputs may include price information, volatility statistics, specific and broad credit data, liquidity statistics, and other factors. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3 of the fair value hierarchy.

The level of a value determined for a financial instrument within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement in its entirety. The categorization of a value determined for a financial instrument within the hierarchy is based upon the pricing transparency of the instrument and does not necessarily correspond to the Funds’ perceived risk of that instrument.

Investments whose values are based on quoted market prices in active markets, and whose values are therefore classified as Level 1 Prices, include active listed equities and certain U.S. government securities. The Funds do not adjust the quoted price for such instruments, even in situations where the Funds hold a large position and a sale could reasonably impact the quoted price.

Investments that trade in markets that are not considered to be active, but whose values are based on inputs such as quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs are classified within Level 2. These generally include certain U.S. government and sovereign obligations, most government agency securities, investment-grade corporate bonds, certain mortgage products, less liquid listed equities, and state, municipal and provincial obligations. As Level 2 investments include positions that are not traded in active markets and/or are subject to transfer restrictions, valuations may be adjusted to reflect illiquidity and/or non-transferability, which are generally based on available market information.

Investments whose values are classified as Level 3 Prices have significant unobservable inputs, as they may trade infrequently or not at all. Investments whose values are classified as Level 3 Prices may include unlisted securities related to corporate actions, securities whose trading have been suspended or which have been de-listed from their primary trading exchange, less liquid corporate debt securities (including distressed debt instruments), collateralized debt obligations, and less liquid mortgage securities (backed by either commercial or residential real estate). When observable prices are not available for these securities, the Funds use one or more valuation techniques (e.g., the market approach or the income approach) for which sufficient and reliable data is available. Within Level 3 of the fair value hierarchy, the use of the market approach generally consists of using comparable market transactions, while the use of the income approach generally consists of the net present value of estimated future cash flows, adjusted as appropriate for liquidity, credit, market and/or other risk factors.

140 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

The inputs used by the Funds in estimating the value of Level 3 Prices may include the original transaction price, recent transactions in the same or similar instruments, completed or pending third-party transactions in the underlying investment or comparable issuers, and changes in financial ratios or cash flows. Level 3 Prices may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated by the Funds in the absence of market information. The fair value measurement of Level 3 Prices does not include transaction costs that may have been capitalized as part of the security’s cost basis. Assumptions used by the Funds due to the lack of observable inputs may significantly impact the resulting fair value and therefore the Funds’ results of operations.

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 underlying index, which in turn, could result in a difference between the Fund’s performance and the performance of the Fund’s underlying index.

The following table summarizes the values of each Fund’s investments according to the fair value hierarchy as of July 31, 2009. The breakdown of each Fund’s investments into major categories is disclosed in its respective Schedule of Investments.

	Investments in Securities
iShares Index Fund and Asset Class	Level 1		Level 2		Level 3		Total
FTSE Developed Small Cap ex-North America	$	23,468,765	$	–	$	–	$	23,468,765
FTSE/Xinhua China 25		12,079,652,987		–		–		12,079,652,987
FTSE China (HK Listed)		44,380,507		–		–		44,380,507
MSCI ACWI
Common Stocks		485,414,298		–		–		485,414,298
Preferred Stocks		6,224,047		–		–		6,224,047
Rights		25,556		–		1		25,557
Warrants		1,712		–		–		1,712
Short-Term Investments		5,827,180		–		–		5,827,180
Total MSCI ACWI		497,492,793		–		1		497,492,794
MSCI ACWI ex US		272,938,701		–		–		272,938,701
MSCI All Country Asia ex Japan		1,120,820,804		–		–		1,120,820,804
MSCI EAFE Growth		1,211,191,734		–		–		1,211,191,734
MSCI EAFE Value		1,146,200,127		–		–		1,146,200,127
MSCI EAFE Small Cap
Common Stocks		376,013,893		–		107,173		376,121,066
Rights		130,638		–		36,167		166,805
Warrants		19,304		–		–		19,304
Short-Term Investments		16,487,283		–		–		16,487,283
Total MSCI EAFE Small Cap		392,651,118		–		143,340		392,794,458
MSCI Kokusai		83,951,000		–		–		83,951,000

NOTES TO FINANCIAL STATEMENTS 141

Notes to Financial Statements (Continued)

iSHARES^® TRUST

The following table provides the reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value for the year ended July 31, 2009:

iShares Index Fund and Asset Class	Balance at Beginning of Year		Realized Gain (Loss) and Change in Unrealized Appreciation (Depreciation)			Net Purchases (Sales)		Net Transfers In (Out)			Balance at End of Year		Net Change in Unrealized Appreciation (Depreciation) from Investments Still Held at End of Year
MSCI ACWI
Common Stocks	$	98,397	$	–		$	–	$	(98,397	)	$	–	$	–
Rights		–		–			–		1			1		1
MSCI EAFE Small Cap
Common Stocks		160,987		(758,778	)		311,888		393,076			107,173		(763,355	)
Rights		–		–			–		36,167			36,167		36,167

SECURITY TRANSACTIONS AND INCOME RECOGNITION

Security transactions are accounted for on trade date. Dividend income is recognized on the ex-dividend date, net of any foreign taxes withheld at source, and interest income is accrued daily. Non-cash dividends received in the form of stock in an elective dividend, if any, are recorded as dividend income at fair value. Realized gains and losses on investment transactions are determined using the specific identification method.

FOREIGN CURRENCY TRANSLATION

The accounting records of the Funds are maintained in U.S. dollars. 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.

FOREIGN TAXES

The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, corporate events, capital gains on investments or currency repatriation. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign markets in which the Funds invest. These foreign taxes, if any, are paid by the Funds and are disclosed in their Statements of Operations. Foreign taxes payable as of July 31, 2009, if any, are reflected in the Funds’ Statements of Assets and Liabilities.

DISTRIBUTIONS TO SHAREHOLDERS

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

142 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

As of July 31, 2009, the tax year-end of the Funds, the components of net distributable earnings (accumulated losses) on a tax basis were as follows:

iShares Index Fund	Undistributed Ordinary Income		Unrealized Appreciation (Depreciation)			Capital and Other Losses			Net Distributable Earnings (Accumulated Losses)
FTSE Developed Small Cap ex-North America	$	133,481	$	(8,304,809	)	$	(1,893,177	)	$	(10,064,505	)
FTSE/Xinhua China 25		39,628,852		593,200,572			(307,818,977	)		325,010,447
FTSE China (HK Listed)		74,140		8,755,395			(367,266	)		8,462,269
MSCI ACWI		1,047,567		(6,629,102	)		(5,894,134	)		(11,475,669	)
MSCI ACWI ex US		994,537		18,988,170			(7,902,908	)		12,079,799
MSCI All Country Asia ex Japan Index		7,079,018		225,036,340			(5,376,278	)		226,739,080
MSCI EAFE Growth		2,233,198		(155,973,181	)		(276,212,796	)		(429,952,779	)
MSCI EAFE Value		2,676,455		(202,923,507	)		(146,638,902	)		(346,885,954	)
MSCI EAFE Small Cap		3,727,564		(8,193,913	)		(11,927,426	)		(16,393,775	)
MSCI Kokusai		243,606		(3,638,040	)		(1,526,106	)		(4,920,540	)

For the years ended July 31, 2009 and July 31, 2008, 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.

FEDERAL INCOME TAXES

Each Fund is treated as a separate entity for federal income tax purposes. It is the policy of each Fund to qualify as a regulated investment company by complying with the provisions applicable to regulated investment companies, as defined under Subchapter M of the Internal Revenue Code of 1986, as amended, and to annually distribute substantially all of its ordinary income and any net capital 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, 2009.

From November 1, 2008 to July 31, 2009, the Funds incurred net realized capital losses. As permitted by tax regulations, these Funds have elected to defer those losses and treat them as arising in the year ending July 31, 2010, as follows:

iShares Index Fund	Deferred Net Realized Capital Losses
FTSE Developed Small Cap ex-North America	$	1,449,976
FTSE/Xinhua China 25		245,667,428
FTSE China (HK Listed)		317,086
MSCI ACWI		5,325,815
MSCI ACWI ex US		7,452,014

iShares Index Fund	Deferred Net Realized Capital Losses
MSCI All Country Asia ex Japan Index	$	5,261,498
MSCI EAFE Growth		253,945,614
MSCI EAFE Value		116,994,387
MSCI EAFE Small Cap		11,263,879
MSCI Kokusai		1,401,343

NOTES TO FINANCIAL STATEMENTS 143

Notes to Financial Statements (Continued)

iSHARES^® TRUST

The Funds had tax basis net capital loss carryforwards as of July 31, 2009, the tax year-end of the Funds, as follows:

iShares Index Fund	Expiring 2014		Expiring 2016		Expiring 2017		Total
FTSE Developed Small Cap ex-North America	$	–	$	–	$	443,201	$	443,201
FTSE/Xinhua China 25		3,332,711		451,243		58,367,595		62,151,549
FTSE China (HK Listed)		–		–		50,180		50,180
MSCI ACWI		–		–		568,319		568,319
MSCI ACWI ex US		–		–		450,894		450,894
MSCI All Country Asia ex Japan		–		–		114,780		114,780
MSCI EAFE Growth		–		2,756,980		19,510,202		22,267,182
MSCI EAFE Value		–		3,201,806		26,442,709		29,644,515
MSCI EAFE Small Cap		–		–		663,547		663,547
MSCI Kokusai		–		–		124,763		124,763

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 marked-to-market gains.

For the year ended July 31, 2009, 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, 2009 are disclosed in the Funds’ Statements of Operations.

As of July 31, 2009, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:

iShares Index Fund	Tax Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation			Net Unrealized Appreciation (Depreciation)
FTSE Developed Small Cap ex-North America	$	31,774,495	$	964,725	$	(9,270,455	)	$	(8,305,730	)
FTSE/Xinhua China 25		11,486,435,383		633,342,730		(40,125,126	)		593,217,604
FTSE China (HK Listed)		35,625,730		8,754,777		–			8,754,777
MSCI ACWI		504,134,873		19,639,650		(26,281,729	)		(6,642,079	)
MSCI ACWI ex US		253,971,170		29,253,839		(10,286,308	)		18,967,531
MSCI All Country Asia ex Japan		895,790,686		225,048,143		(18,025	)		225,030,118
MSCI EAFE Growth		1,367,239,999		21,996,887		(178,045,152	)		(156,048,265	)
MSCI EAFE Value		1,349,179,244		20,430,190		(223,409,307	)		(202,979,117	)
MSCI EAFE Small Cap		401,000,347		26,681,669		(34,887,558	)		(8,205,889	)
MSCI Kokusai		87,593,348		1,971,452		(5,613,800	)		(3,642,348	)

144 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

Management has reviewed the tax positions as of July 31, 2009, inclusive of the prior three open tax return years, and has determined that no provision for income tax is required in the Funds’ financial statements.

2. AGREEMENTS AND OTHER TRANSACTIONS WITH AFFILIATES

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

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

iShares Index Fund	Investment Advisory Fee
FTSE Developed Small Cap ex-North America	0.50	%
MSCI EAFE Growth	0.40
MSCI EAFE Value	0.40
MSCI EAFE Small Cap	0.40
MSCI Kokusai	0.25

For its investment advisory services to the iShares FTSE/Xinhua China 25 and iShares FTSE China (HK Listed) Index Funds, BGFA is entitled to an annual investment advisory fee based on each Fund’s allocable portion of the aggregate of the average daily net assets of these two Funds as follows:

Investment Advisory Fee	Aggregate 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

For its investment advisory services to the iShares MSCI ACWI and iShares MSCI ACWI ex US Index Funds, BGFA is entitled to an annual investment advisory fee based on each Fund’s allocable portion of the aggregate of the average daily net assets of these two Funds and the iShares MSCI EAFE Index Fund as follows:

Investment Advisory Fee	Aggregate 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

NOTES TO FINANCIAL STATEMENTS 145

Notes to Financial Statements (Continued)

iSHARES^® TRUST

For its investment advisory services to the iShares MSCI All Country Asia ex Japan Index Fund, BGFA is entitled to an annual investment advisory fee based on the Fund’s allocable portion of the aggregate of the average daily net assets of the Fund, and the iShares MSCI BRIC and iShares MSCI Emerging Markets Index Funds as follows:

Investment Advisory Fee	Aggregate Average Daily Net Assets
0.75%	First $14 billion
0.68	Over $14 billion, up to and including $28 billion
0.61	Over $28 billion

Effective August 13, 2008, BGFA has contractually agreed to waive a portion of its advisory fees for the iShares MSCI All Country Asia ex Japan Index Fund through November 30, 2009 in an amount equal to the investment advisory fees payable on the amount of the Fund’s investment in other iShares Funds.

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 Funds. 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, 2009, BGI earned securities lending agent fees as follows:

iShares Index Fund	Securities Lending Agent Fees
FTSE Developed Small Cap ex-North America	$	12,884
FTSE/Xinhua China 25		10,999,266
FTSE China (HK Listed)		5,499
MSCI ACWI		69,815
MSCI ACWI ex US		26,343

iShares Index Fund	Securities Lending Agent Fees
MSCI All Country Asia ex Japan	$	61,867
MSCI EAFE Growth		285,023
MSCI EAFE Value		240,277
MSCI EAFE Small Cap		170,582
MSCI Kokusai		35,043

Each Fund may invest in 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. These money market funds seek to achieve their investment objectives by investing in high-quality, short-term money market instruments that, at the time of investment, have remaining maturities of 397 calendar days or less from the date of acquisition. 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

146 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

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, 2009, 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:

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 (Loss)
MSCI ACWI
Barclays PLC	43	278	74	247	$	1,240,185	$	9,201	$	(14,866	)
MSCI ACWI ex US
Barclays PLC	25	269	60	234		1,173,044		6,440		(59,841	)
MSCI All Country Asia ex Japan
iShares MSCI Malaysia Index Fund	–	1,417	221	1,196		11,670,130		301,040		(269,492	)
MSCI EAFE Value
Barclays PLC	1,275	1,861	391	2,745		13,757,935		272,557		(679,509	)
MSCI Kokusai
Barclays PLC	16	359	320	55		276,966		3,374		153,586

Certain trustees and officers of the Trust are also officers of BGI and/or BGFA.

3. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the year ended July 31, 2009 were as follows:

iShares Index Fund	Purchases		Sales
FTSE Developed Small Cap ex-North America	$	3,646,035	$	3,343,697
FTSE/Xinhua China 25		3,031,694,149		2,986,713,878
FTSE China (HK Listed)		3,895,151		3,308,508
MSCI ACWI		18,966,783		13,002,253
MSCI ACWI ex US		14,257,069		12,679,877
MSCI All Country Asia ex Japan		34,010,039		20,670,478
MSCI EAFE Growth		349,215,433		347,272,465
MSCI EAFE Value		324,296,905		317,371,015
MSCI EAFE Small Cap		58,114,552		50,100,634
MSCI Kokusai		15,971,788		12,863,901

NOTES TO FINANCIAL STATEMENTS 147

Notes to Financial Statements (Continued)

iSHARES^® TRUST

In-kind transactions (see Note 4) for the year ended July 31, 2009 were as follows:

iShares Index Fund	In-kind Purchases		In-kind Sales
FTSE Developed Small Cap ex-North America	$	6,642,626	$	–
FTSE/Xinhua China 25		7,935,982,767		3,826,073,582
FTSE China (HK Listed)		28,766,926		–
MSCI ACWI		506,133,818		167,945,992
MSCI ACWI ex US		269,480,071		56,525,525
MSCI All Country Asia ex Japan		944,461,560		162,800,191
MSCI EAFE Growth		254,176,289		40,770,118
MSCI EAFE Value		517,255,500		129,327,143
MSCI EAFE Small Cap		275,693,244		64,806,481
MSCI Kokusai		513,738,838		513,358,094

4. CAPITAL SHARE TRANSACTIONS

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 an optimized 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.

From time to time, settlement of securities related to in-kind contributions or in-kind redemptions may be delayed. In such cases, securities related to in-kind contributions are reflected as “Due from custodian” and securities related to in-kind redemptions are reflected as “Securities related to in-kind transactions” in the Statements of Assets and Liabilities.

5. LOANS OF PORTFOLIO SECURITIES

Each Fund may lend its investment securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the market value of the loaned securities 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 include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. Any securities lending cash collateral may be reinvested in certain short-term instruments either directly on behalf of a Fund or through one or more joint accounts or money market funds, including those managed by BGFA; such reinvestments are subject to investment risk.

148 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

As of July 31, 2009, the Funds had loaned securities which were collateralized by cash. The cash collateral received was invested in money market funds managed by BGFA. The market value of the securities on loan as of July 31, 2009 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.

6. BLACKROCK TRANSACTION

On June 16, 2009, Barclays PLC, the ultimate parent company of BGFA and BGI, accepted a binding offer and entered into an agreement to sell its interests in BGFA, BGI and certain affiliated companies, to BlackRock, Inc., (the “BlackRock Transaction”). The BlackRock Transaction is subject to certain regulatory approvals, as well as other conditions to closing.

Under the 1940 Act, completion of the BlackRock Transaction will cause the automatic termination of each Fund’s current investment advisory agreement with BGFA. In order for the management of each Fund to continue uninterrupted, the Board approved a new investment advisory agreement for each Fund subject to shareholder approval. A special meeting of shareholders of the Funds is scheduled to be held on November 4, 2009. Each shareholder of record as of the close of business on August 25, 2009 will receive notice of and be entitled to vote at the meeting.

7. REVIEW OF SUBSEQUENT EVENTS

In connection with the preparation of the financial statements of the Funds as of and for the year ended July 31, 2009, events and transactions through September 22, 2009, the date the financial statements are available to be issued, have been evaluated by the Funds’ management for possible adjustment and/or disclosure. No subsequent events requiring financial statement disclosure have been identified.

NOTES TO FINANCIAL STATEMENTS 149

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Trustees of

iShares Trust:

In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of the iShares FTSE Developed Small Cap ex-North America Index Fund, iShares FTSE/Xinhua China 25 Index Fund, iShares FTSE China (HK Listed) Index Fund, iShares MSCI ACWI Index Fund, iShares MSCI ACWI ex US Index Fund, iShares MSCI All Country Asia ex Japan Index Fund, iShares MSCI EAFE Growth Index Fund, iShares MSCI EAFE Value Index Fund, iShares MSCI EAFE Small Cap Index Fund and MSCI Kokusai Index Fund, each a fund of iShares Trust, (the “Funds”), at July 31, 2009, 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, 2009 by correspondence with the custodian, transfer agent and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California

September 22, 2009

150 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Tax Information(Unaudited)

iSHARES^® TRUST

For corporate shareholders, the following percentages of the income dividends paid by certain Funds during the fiscal year ended July 31, 2009 qualified for the dividends-received deduction:

iShares Index Fund	Dividends- Received Deduction
MSCI ACWI	42.60	%
MSCI ACWI ex US	0.06
MSCI EAFE Growth	0.06
MSCI Kokusai	48.01

For the fiscal year ended July 31, 2009, 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 Code as follows:

iShares Index Fund	Foreign Source Income Earned		Foreign Taxes Paid
FTSE Developed Small Cap ex-North America	$	642,215	$	45,723
FTSE/Xinhua China 25		207,472,086		16,429,114
FTSE China (HK Listed)		518,063		44,905
MSCI ACWI		4,580,904		429,519
MSCI ACWI ex US		6,857,049		638,013
MSCI All Country Asia ex Japan		13,018,635		1,496,593
MSCI EAFE Growth		31,037,654		2,401,525
MSCI EAFE Value		40,457,705		3,380,501
MSCI EAFE Small Cap		7,235,853		552,462

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, 2009:

iShares Index Fund	Qualified Dividend Income
FTSE Developed Small Cap ex-North America	$	529,454
FTSE/Xinhua China 25		127,160,014
FTSE China (HK Listed)		311,435
MSCI ACWI		5,240,306
MSCI ACWI ex US		5,263,263

iShares Index Fund	Qualified Dividend Income
MSCI All Country Asia ex Japan	$	4,289,082
MSCI EAFE Growth		27,879,748
MSCI EAFE Value		33,575,451
MSCI EAFE Small Cap		5,582,744
MSCI Kokusai		2,643,098

In January 2010, shareholders will receive Form 1099-DIV which will include their share of qualified dividend income distributed during the calendar year 2009. Shareholders are advised to check with their tax advisers for information on the treatment of these amounts on their income tax returns.

TAX INFORMATION 151

Board Review and Approval of Investment Advisory Contract (Unaudited)

iSHARES^® TRUST

I. iShares FTSE Developed Small Cap ex-North America, iShares FTSE/Xinhua China 25, iShares FTSE China (HK Listed), iShares MSCI ACWI, iShares MSCI ACWI ex US, iShares MSCI EAFE Growth, iShares MSCI EAFE Value, iShares MSCI EAFE Small Cap, and iShares MSCI Kokusai Index Funds

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 16-17, 2009, 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, no one of which was controlling, and made the following conclusions:

NATURE, EXTENT AND QUALITY OF SERVICES PROVIDED BY BGFA

Based on management’s representations, the Board expected that there will be no diminution in the scope of services required of or provided by 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 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 any of the Funds; therefore, directly comparable 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.

FUND’S EXPENSES AND PERFORMANCE OF THE FUNDS

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 registered investment companies objectively selected by Lipper as comprising such Fund’s applicable peer group (the “Lipper Group”). 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 mutual funds, closed-end funds, exchange traded funds, or 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. In addition, the Board reviewed statistical information prepared by Lipper regarding the performance of each Fund for the one-, three-year and “last quarter” periods ended March 31, 2009, as applicable, and a comparison

152 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Unaudited) (Continued)

iSHARES^® TRUST

of each Fund’s performance to its performance benchmark index for the same periods. To the extent that any of the comparison funds included in the Lipper Group track the same indexes as any particular Fund, Lipper also provided, and the Board reviewed, a comparison of such Fund’s performance to that of such relevant comparison funds for the same periods. The Board noted that the Funds generally performed in line with their respective performance benchmark indexes over the relevant 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 its benchmark 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 expenses of the funds in their respective Lipper Groups. 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 from the Funds’ operations 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 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.

ECONOMIES OF SCALE

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 iShares FTSE/Xinhua China 25 Index Fund and the iShares FTSE China (HK Listed) Index Fund (the “China Funds”) and the iShares MSCI ACWI and iShares MSCI ACWI ex US Index Funds (the “ACWI Funds”). 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 China Funds and the ACWI Funds, over the last few years. The Board noted that the asset size of the iShares MSCI EAFE Growth Index Fund decreased over the past twelve months. The Board also reviewed BGFA’s historic profitability as investment adviser to the iShares fund complex and noted that BGFA had continued to make significant investments in the iShares fund complex, that expenses had grown at a pace similar to the growth in revenue, and that BGFA 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 China Funds and the ACWI Funds 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 and performance benchmark comparisons, the Board, recognizing its responsibility to consider this issue at least annually, concluded that the structure of

BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT 153

Board Review and Approval of Investment Advisory

Contract (Unaudited) (Continued)

iSHARES^® TRUST

the investment advisory fees for all the Funds, including the current breakpoints for the China Funds and the ACWI Funds, reflects appropriate 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 directly comparable investment advisory/management fee information was available for any of the 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 Fund for which such information was available, the Board considered the general structure of investment advisory/management fees in relation to the nature and extent of services provided to the 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 Fund and the Other Accounts under differing regulatory requirements and client guidelines. The Board noted that the investment advisory fee rate for the 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 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.

OTHER BENEFITS TO BGFA AND/OR ITS AFFILIATES

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 while revenue to BGI in connection with securities lending agency services to the iShares funds increased overall as against the previous year, overall revenue increased by approximately the same percentage as overall expenses. 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 or purchased from an underwriting syndicate in which a BGFA affiliate participates, are reported to the Board pursuant to Rule 17e-1 or Rule 10f-3, 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 thereunder, 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.

154 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Unaudited) (Continued)

iSHARES^® TRUST

II. iShares MSCI All Country Asia ex Japan Index Fund

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 Fund. 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 16-17, 2009, 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 Fund, the Board, including the Independent Trustees, advised by their independent counsel, considered the following factors, no one of which was controlling, and made the following conclusions:

NATURE, EXTENT AND QUALITY OF SERVICES PROVIDED BY BGFA

Based on management’s representations, the Board expected that there will be no diminution in the scope of services required of or provided by 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 Fund. The Board also considered BGFA’s compliance program and its compliance record with respect to the Fund. 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 Fund. 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 Fund for which BGFA provides investment advisory services, noting that such other series generally performed in line with relevant benchmarks over relevant periods. The Board also noted that the Fund had met its investment objectives consistently since its inception date. Based on review of this information, the Board concluded that the nature, extent and quality of services to be provided by BGFA to the Fund under the Advisory Contract were appropriate and mitigated in favor of the Board’s approval of the Advisory Contract for the coming year.

FUND’S EXPENSES AND PERFORMANCE OF THE FUND

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 the Fund in comparison with the same information for other registered investment companies objectively selected by Lipper as comprising the Fund’s applicable peer group pursuant to Lipper’s proprietary methodology and any registered investment companies that would otherwise have been excluded from Lipper’s comparison group due to certain differentiating factors, but were nonetheless included at the request of BGFA (the “Lipper Group”). Because there are few, if any, exchange traded funds or index funds that track indexes similar to that tracked by the Fund, the Lipper Group included in part mutual funds, closed-end funds, exchange traded funds, or 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 Group and to prepare this information. The Board further noted that due to the limitations in providing comparable funds in the various Lipper Group, the statistical information may or may not provide meaningful direct comparisons to the Fund. In addition, the Board reviewed statistical information prepared by Lipper regarding the performance of the Fund for the “last quarter” period ended March 31, 2009, and a comparison of the Fund’s performance to its

BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT 155

Board Review and Approval of Investment Advisory

Contract (Unaudited) (Continued)

iSHARES^® TRUST

performance benchmark index for the same period. To the extent that any of the comparison funds included in the Lipper Group track the same index as the Fund, Lipper also provided, and the Board reviewed, a comparison of such Fund’s performance to that of such relevant comparison funds for the same periods. The Board noted that the Fund generally performed in line with its performance benchmark index over the relevant periods. In considering this information, the Board noted that the Lipper Group includes funds that may have different investment objectives and/or benchmarks from the Fund. In addition, the Board noted that the Fund seeks to track its benchmark index and that during the prior year the Board received periodic reports on the Fund’s performance in comparison with its benchmark index. Such comparative performance information was also considered by the Board.

The Board also noted that the investment advisory fees and overall expenses for the Fund were generally lower than the median or average investment advisory fee rates and expenses of the funds in the Lipper Group. Based on this review, the Board concluded that the investment advisory fees and expense levels and the historical performance of the Fund, as managed by BGFA, as compared to the investment advisory fees and expense levels and performance of the funds in the Lipper Group, were satisfactory for the purposes of approving the Advisory Contract for the coming year.

COSTS OF SERVICES PROVIDED TO THE FUND AND PROFITS REALIZED BY BGFA AND AFFILIATES

The Board reviewed information about the profitability to BGFA of the Fund 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 from the Fund’s operations 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 Fund). The Board also discussed BGFA’s profit margin as reflected in the Fund’s profitability analysis and reviewed information regarding economies of scale (as discussed below). Based on this review, the Board concluded that the profits realized by BGFA and its affiliates under the Advisory Contract and from other relationships between the Fund and BGFA and/or its affiliates, if any, were within the range the Board considered reasonable and appropriate.

ECONOMIES OF SCALE

In connection with its review of the Fund’s profitability analysis, the Board reviewed information regarding economies of scale or other efficiencies that may result from increases in the Fund’s assets. The Board noted that the Advisory Contract already provided for breakpoints in the Fund’s investment advisory fee rates as the assets of the Fund, on an aggregated basis with the assets of certain other iShares funds, increase. The Board also reviewed BGFA’s historic profitability as investment adviser to the iShares fund complex and noted that BGFA had continued to make significant investments in the iShares fund complex, that expenses had grown at a pace similar to the growth in revenue, and that BGFA had incurred operating losses during earlier years when the iShares funds had not yet reached scale. In light of this history, the Board determined that the current breakpoints were appropriate and warranted. 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 appropriate sharing of economies of scale with the Fund’s shareholders.

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

The Board received and considered information regarding the Fund’s 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 directly comparable investment advisory/management fee information

156 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Unaudited) (Continued)

iSHARES^® TRUST

was not available for the Fund, as BGFA and its affiliates do not manage any Other Accounts with substantially similar investment objectives and strategies as the Fund. 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.

OTHER BENEFITS TO BGFA AND/OR ITS AFFILIATES

The Board reviewed any ancillary revenue received by BGFA and/or its affiliates in connection with the services provided to the Fund 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 Fund in other funds for which BGFA provides investment advisory services and/or BGI provides administration services. The Board noted that while revenue to BGI in connection with securities lending agency services to the iShares funds increased overall as against the previous year, overall revenue increased by approximately the same percentage as overall expenses. 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 Fund. The Board further noted that any portfolio transactions on behalf of the Fund placed through a BGFA affiliate or purchased from an underwriting syndicate in which a BGFA affiliate participates, are reported to the Board pursuant to Rule 17e-1 or Rule 10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund’s shareholders.

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

BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT 157

Supplemental Information (Unaudited)

iSHARES^® TRUST

The tables that follow present information about the differences between the daily market price on secondary markets for shares of 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 primary 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.

iShares FTSE Developed Small Cap ex-North America Index Fund

Period Covered: January 1, 2008 through June 30, 2009

Premium/Discount Range	Number of Days	Percentage of Total Days
Greater than 5.0%	6	1.60	%
Greater than 4.5% and Less than 5.0%	1	0.27
Greater than 4.0% and Less than 4.5%	3	0.80
Greater than 3.5% and Less than 4.0%	3	0.80
Greater than 3.0% and Less than 3.5%	1	0.27
Greater than 2.5% and Less than 3.0%	11	2.93
Greater than 2.0% and Less than 2.5%	6	1.60
Greater than 1.5% and Less than 2.0%	17	4.52
Greater than 1.0% and Less than 1.5%	33	8.78
Greater than 0.5% and Less than 1.0%	61	16.22
Between 0.5% and –0.5%	125	33.22
Less than –0.5% and Greater than –1.0%	44	11.70
Less than –1.0% and Greater than –1.5%	32	8.51
Less than –1.5% and Greater than –2.0%	11	2.93
Less than –2.0% and Greater than –2.5%	9	2.39
Less than –2.5% and Greater than –3.0%	5	1.33
Less than –3.0% and Greater than –3.5%	3	0.80
Less than –3.5%	5	1.33
	376	100.00	%

158 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^® TRUST

iShares FTSE/Xinhua China 25 Index Fund

Period Covered: January 1, 2005 through June 30, 2009

Premium/Discount Range	Number of Days	Percentage of Total Days
Greater than 6.0%	11	0.97	%
Greater than 5.5% and Less than 6.0%	4	0.35
Greater than 5.0% and Less than 5.5%	4	0.35
Greater than 4.5% and Less than 5.0%	2	0.18
Greater than 4.0% and Less than 4.5%	8	0.71
Greater than 3.5% and Less than 4.0%	13	1.15
Greater than 3.0% and Less than 3.5%	18	1.59
Greater than 2.5% and Less than 3.0%	19	1.68
Greater than 2.0% and Less than 2.5%	30	2.65
Greater than 1.5% and Less than 2.0%	48	4.25
Greater than 1.0% and Less than 1.5%	110	9.73
Greater than 0.5% and Less than 1.0%	207	18.32
Between 0.5% and –0.5%	337	29.83
Less than –0.5% and Greater than –1.0%	102	9.03
Less than –1.0% and Greater than –1.5%	68	6.02
Less than –1.5% and Greater than –2.0%	32	2.83
Less than –2.0% and Greater than –2.5%	33	2.92
Less than –2.5% and Greater than –3.0%	22	1.95
Less than –3.0% and Greater than –3.5%	13	1.15
Less than –3.5% and Greater than –4.0%	12	1.06
Less than –4.0% and Greater than –4.5%	9	0.80
Less than –4.5% and Greater than –5.0%	6	0.53
Less than –5.0% and Greater than –5.5%	3	0.27
Less than –5.5% and Greater than –6.0%	2	0.18
Less than –6.0%	17	1.50
	1,130	100.00	%

SUPPLEMENTAL INFORMATION 159

Supplemental Information (Unaudited) (Continued)

iSHARES^® TRUST

iShares FTSE China (HK Listed) Index Fund

Period Covered: July 1, 2008 through June 30, 2009

Premium/Discount Range	Number of Days	Percentage of Total Days
Greater than 5.5%	10	3.98	%
Greater than 5.0% and Less than 5.5%	3	1.20
Greater than 4.5% and Less than 5.0%	6	2.39
Greater than 4.0% and Less than 4.5%	6	2.39
Greater than 3.5% and Less than 4.0%	8	3.19
Greater than 3.0% and Less than 3.5%	9	3.59
Greater than 2.5% and Less than 3.0%	21	8.37
Greater than 2.0% and Less than 2.5%	18	7.17
Greater than 1.5% and Less than 2.0%	15	5.98
Greater than 1.0% and Less than 1.5%	20	7.97
Greater than 0.5% and Less than 1.0%	21	8.37
Between 0.5% and –0.5%	43	17.10
Less than –0.5% and Greater than –1.0%	17	6.77
Less than –1.0% and Greater than –1.5%	12	4.78
Less than –1.5% and Greater than –2.0%	12	4.78
Less than –2.0% and Greater than –2.5%	6	2.39
Less than –2.5% and Greater than –3.0%	5	1.99
Less than –3.0% and Greater than –3.5%	3	1.20
Less than –4.0% and Greater than –4.5%	3	1.20
Less than –4.5% and Greater than –5.0%	2	0.80
Less than –5.0% and Greater than –5.5%	1	0.40
Less than –5.5% and Greater than –6.0%	3	1.20
Less than –6.0%	7	2.79
	251	100.00	%

160 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^® TRUST

iShares MSCI ACWI Index Fund

Period Covered: April 1, 2008 through June 30, 2009

Premium/Discount Range	Number of Days	Percentage of Total Days
Greater than 3.5%	3	0.95	%
Greater than 3.0% and Less than 3.5%	3	0.95
Greater than 2.0% and Less than 2.5%	2	0.63
Greater than 1.5% and Less than 2.0%	8	2.54
Greater than 1.0% and Less than 1.5%	21	6.67
Greater than 0.5% and Less than 1.0%	73	23.17
Between 0.5% and –0.5%	163	51.75
Less than –0.5% and Greater than –1.0%	27	8.57
Less than –1.0% and Greater than –1.5%	8	2.54
Less than –1.5% and Greater than –2.0%	4	1.27
Less than –2.0% and Greater than –2.5%	1	0.32
Less than –2.5% and Greater than –3.0%	1	0.32
Less than –3.0% and Greater than –3.5%	1	0.32
	315	100.00	%

iShares MSCI ACWI ex US Index Fund

Period Covered: April 1, 2008 through June 30, 2009

Premium/Discount Range	Number of Days	Percentage of Total Days
Greater than 4.5%	6	1.90	%
Greater than 4.0% and Less than 4.5%	2	0.63
Greater than 3.5% and Less than 4.0%	1	0.32
Greater than 3.0% and Less than 3.5%	3	0.95
Greater than 2.5% and Less than 3.0%	9	2.86
Greater than 2.0% and Less than 2.5%	8	2.54
Greater than 1.5% and Less than 2.0%	11	3.49
Greater than 1.0% and Less than 1.5%	31	9.84
Greater than 0.5% and Less than 1.0%	51	16.19
Between 0.5% and –0.5%	119	37.78
Less than –0.5% and Greater than –1.0%	29	9.21
Less than –1.0% and Greater than –1.5%	21	6.67
Less than –1.5% and Greater than –2.0%	10	3.17
Less than –2.0% and Greater than –2.5%	5	1.59
Less than –2.5% and Greater than –3.0%	5	1.59
Less than –3.0%	4	1.27
	315	100.00	%

SUPPLEMENTAL INFORMATION 161

Supplemental Information (Unaudited) (Continued)

iSHARES^® TRUST

iShares MSCI All Country Asia ex Japan Index Fund

Period Covered: October 1, 2008 through June 30, 2009

Premium/Discount Range	Number of Days	Percentage of Total Days
Greater than 5.5%	1	0.53	%
Greater than 5.0% and Less than 5.5%	1	0.53
Greater than 4.5% and Less than 5.0%	1	0.53
Greater than 4.0% and Less than 4.5%	3	1.60
Greater than 3.5% and Less than 4.0%	2	1.07
Greater than 3.0% and Less than 3.5%	3	1.60
Greater than 2.5% and Less than 3.0%	5	2.67
Greater than 2.0% and Less than 2.5%	10	5.35
Greater than 1.5% and Less than 2.0%	13	6.95
Greater than 1.0% and Less than 1.5%	22	11.76
Greater than 0.5% and Less than 1.0%	30	16.04
Between 0.5% and –0.5%	51	27.32
Less than –0.5% and Greater than –1.0%	17	9.09
Less than –1.0% and Greater than –1.5%	9	4.81
Less than –1.5% and Greater than –2.0%	6	3.21
Less than –2.0% and Greater than –2.5%	2	1.07
Less than –2.5% and Greater than –3.0%	4	2.14
Less than –3.0% and Greater than –3.5%	3	1.60
Less than –3.5% and Greater than –4.0%	1	0.53
Less than –4.0% and Greater than –4.5%	2	1.07
Less than –4.5%	1	0.53
	187	100.00	%

162 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^® TRUST

iShares MSCI EAFE Growth Index Fund

Period Covered: October 1, 2005 through June 30, 2009

Premium/Discount Range	Number of Days	Percentage of Total Days
Greater than 4.0%	7	0.74	%
Greater than 3.5% and Less than 4.0%	2	0.21
Greater than 3.0% and Less than 3.5%	2	0.21
Greater than 2.5% and Less than 3.0%	12	1.28
Greater than 2.0% and Less than 2.5%	12	1.28
Greater than 1.5% and Less than 2.0%	18	1.91
Greater than 1.0% and Less than 1.5%	78	8.29
Greater than 0.5% and Less than 1.0%	219	23.27
Between 0.5% and –0.5%	464	49.30
Less than –0.5% and Greater than –1.0%	60	6.38
Less than –1.0% and Greater than –1.5%	34	3.61
Less than –1.5% and Greater than –2.0%	15	1.59
Less than –2.0% and Greater than –2.5%	5	0.53
Less than –2.5% and Greater than –3.0%	3	0.32
Less than –3.0% and Greater than –3.5%	4	0.43
Less than –3.5% and Greater than –4.0%	1	0.11
Less than –4.0% and Greater than –4.5%	1	0.11
Less than –4.5% and Greater than –5.0%	1	0.11
Less than –5.0% and Greater than –5.5%	1	0.11
Less than –5.5%	2	0.21
	941	100.00	%

SUPPLEMENTAL INFORMATION 163

Supplemental Information (Unaudited) (Continued)

iSHARES^® TRUST

iShares MSCI EAFE Value Index Fund

Period Covered: October 1, 2005 through June 30, 2009

Premium/Discount Range	Number of Days	Percentage of Total Days
Greater than 4.5%	6	0.64	%
Greater than 4.0% and Less than 4.5%	2	0.21
Greater than 3.5% and Less than 4.0%	1	0.11
Greater than 3.0% and Less than 3.5%	2	0.21
Greater than 2.5% and Less than 3.0%	14	1.49
Greater than 2.0% and Less than 2.5%	11	1.17
Greater than 1.5% and Less than 2.0%	23	2.44
Greater than 1.0% and Less than 1.5%	62	6.59
Greater than 0.5% and Less than 1.0%	208	22.10
Between 0.5% and –0.5%	454	48.25
Less than –0.5% and Greater than –1.0%	73	7.76
Less than –1.0% and Greater than –1.5%	47	4.99
Less than –1.5% and Greater than –2.0%	14	1.49
Less than –2.0% and Greater than –2.5%	5	0.53
Less than –2.5% and Greater than –3.0%	6	0.64
Less than –3.0% and Greater than –3.5%	6	0.64
Less than –3.5% and Greater than –4.0%	2	0.21
Less than –4.0%	5	0.53
	941	100.00	%

164 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^® TRUST

iShares MSCI EAFE Small Cap Index Fund

Period Covered: January 1, 2008 through June 30, 2009

Premium/Discount Range	Number of Days	Percentage of Total Days
Greater than 6.0%	7	1.86	%
Greater than 5.5% and Less than 6.0%	1	0.27
Greater than 5.0% and Less than 5.5%	1	0.27
Greater than 4.5% and Less than 5.0%	1	0.27
Greater than 4.0% and Less than 4.5%	2	0.53
Greater than 3.5% and Less than 4.0%	7	1.86
Greater than 3.0% and Less than 3.5%	5	1.33
Greater than 2.5% and Less than 3.0%	13	3.46
Greater than 2.0% and Less than 2.5%	23	6.12
Greater than 1.5% and Less than 2.0%	27	7.18
Greater than 1.0% and Less than 1.5%	50	13.30
Greater than 0.5% and Less than 1.0%	64	17.02
Between 0.5% and –0.5%	100	26.59
Less than –0.5% and Greater than –1.0%	31	8.24
Less than –1.0% and Greater than –1.5%	14	3.72
Less than –1.5% and Greater than –2.0%	15	3.99
Less than –2.0% and Greater than –2.5%	3	0.80
Less than –2.5% and Greater than –3.0%	6	1.60
Less than –3.0% and Greater than –3.5%	4	1.06
Less than –3.5%	2	0.53
	376	100.00	%

iShares MSCI Kokusai Index Fund

Period Covered: January 1, 2008 through June 30, 2009

Premium/Discount Range	Number of Days	Percentage of Total Days
Greater than 4.5%	1	0.27	%
Greater than 4.0% and Less than 4.5%	1	0.27
Greater than 3.5% and Less than 4.0%	2	0.53
Greater than 3.0% and Less than 3.5%	1	0.27
Greater than 2.5% and Less than 3.0%	2	0.53
Greater than 2.0% and Less than 2.5%	4	1.06
Greater than 1.5% and Less than 2.0%	10	2.66
Greater than 1.0% and Less than 1.5%	40	10.64
Greater than 0.5% and Less than 1.0%	97	25.80
Between 0.5% and –0.5%	197	52.38
Less than –0.5% and Greater than –1.0%	16	4.26
Less than –1.0% and Greater than –1.5%	4	1.06
Less than –1.5%	1	0.27
	376	100.00	%

SUPPLEMENTAL INFORMATION 165

Trustee and Officer Information (Unaudited)

iSHARES^® TRUST

The Board of Trustees has responsibility for the overall management and operations of the Trust, including general supervision of the duties performed by BGFA and other service providers. Each Trustee serves until 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”) and Master Investment Portfolio (“MIP”) 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 179 portfolios within the fund complex. In addition, Lee T. Kranefuss serves as a Trustee for BGIF and MIP and oversees an additional 26 portfolios within the fund complex.

The address of each Trustee and Officer is c/o Barclays Global Investors, N.A., 400 Howard 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.

Interested Trustees and Officers

Name, Age	Position(s), Length of Service	Principal Occupation(s) During Past 5 Years	Other Directorships Held
*Lee T. Kranefuss, 47	Trustee and Chairman (since 2003).	Non-Executive Chairman (since 2009), iShares; Global Chief Executive Officer (2008-2009) of iShares/Intermediary Groups of BGI; Chief Executive Officer (2005-2008) of iShares Intermediary Index and Market Group of BGI; Chief Executive Officer (2003-2005) of the Intermediary Investor and Exchange Traded Products Business of BGI; Director (since 2005) of BGFA; Director, President and Chief Executive Officer (since 2005) of Barclays Global Investors International, Inc.; Director and Chairman (since 2005) of Barclays Global Investors Services.	Director (since 2003) of iShares, Inc.; Trustee (since 2001) of BGIF and MIP.

* Lee T. Kranefuss is deemed to be an “interested person” (as defined in the 1940 Act) of the Trust due to his affiliations with BGFA, the Funds’ investment adviser; BGI, the parent company of BGFA; and Barclays Global Investors Services, an affiliate of BGFA and BGI.

166 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Trustee and Officer Information (Unaudited)  (Continued)

iSHARES^® TRUST

Independent Trustees

Name, Age	Position(s), Length of Service	Principal Occupation(s) During Past 5 Years	Other Directorships Held
George G.C. Parker, 70	Trustee (since 2000); Lead Independent Trustee (since 2006).	Dean Witter Distinguished Professor of Finance (since 1994), Emeritus, Stanford University: Graduate School of Business.	Director (since 2002) of iShares, Inc.; Lead Independent Director (since 2006) of iShares, Inc.; Director (since 1995) of Community First Financial Group; Director (since 1999) of Tejon Ranch Company; Director (since 2004) of Threshold Pharmaceuticals; Director (since 2007) of NETGEAR, Inc.
J. Darrell Duffie, 55	Trustee (since 2008).	Professor (since 1984) of Stanford University: Graduate School of Business.	Director (since 2008) of iShares, Inc.; Director (since 2008) of Moody’s Corp.
Cecilia H. Herbert, 60	Trustee (since 2005).	Chair (1994-2005) of Investment Committee, Archdiocese of San Francisco; Director (since 1998) and President (since 2007) of the Board of Directors, Catholic Charities CYO; Trustee (2004-2005) of Pacific Select Funds; Trustee (since 2002) and Chair (2006-2007) of the Finance and Investment Committees (since 2006) of the Thacher School.	Director (since 2005) of iShares, Inc.; Advisory Board Member (since 2009) of Forward Funds.
Charles A. Hurty, 65	Trustee (since 2005).	Retired. Partner, KPMG LLP (1968-2001).	Director (since 2005) of iShares, Inc.; Director (since 2002) of ProMark Absolute Return Strategies Fund LLC (1 portfolio); Director (since 2002) of Citigroup Alternative Investments Multi-Adviser Hedge Fund Portfolios LLC (1 portfolio); Director (since 2005) of CSFB Alternative Investments Fund (6 portfolios).
John E. Kerrigan, 54	Trustee (since 2005).	Chief Investment Officer (since 2002) of Santa Clara University.	Director (since 2005) of iShares, Inc.
*John E. Martinez, 48	Trustee (since 2003).	Director (since 2005) of EquityRock Capital Management; Director (since 2003) of Larkin Street Youth Services.	Director (since 2003) of iShares, Inc.; Chairman (since 2007) of Independent Review Committee, Canadian iShares Funds.

TRUSTEE AND OFFICER INFORMATION 167

Trustee and Officer Information (Unaudited) (Continued)

iSHARES^® TRUST

Independent Trustees (Continued)

Name, Age	Position(s), Length of Service	Principal Occupation(s) During Past 5 Years	Other Directorships Held
Robert H. Silver, 54	Trustee (since 2007).	President and Co-Founder (since 2006) of The Bravitas Group, Inc.; Member (since 2006) of Non-Investor Advisory Board of Russia Partners II, LP; Director and member (2006-2009) of the Audit and Compensation Committee of EPAM Systems, Inc.; President and Chief Operating Officer (2003-2005) and Director (1999-2005) of UBS Financial Services, Inc.; President and Chief Executive Officer (1999-2005) of UBS Services USA, LLC; Managing Director (2000-2005) of UBS America, Inc.; Director and Vice Chairman (since 2001) of the YMCA of Greater NYC; Broadway Producer (since 2006); Co- Founder and Vice President (since 2008) of Parentgiving Inc.	Director (since 2007) of iShares, Inc.

* Prior to August 13, 2009, John E. Martinez was deemed to be an “interested person” (as defined in the 1940 Act) of the Trust due to his affiliations with BGFA, the Funds’ investment adviser; BGI, the parent company of BGFA; and Barclays Global Investors Services, an affiliate of BGFA and BGI. Effective August 13, 2009, John E. Martinez is a non-interested person notwithstanding his former affiliation with the BGFA and its affiliates prior to 2002.

Officers

Name, Age	Position(s), Length of Service	Principal Occupation(s) During Past 5 Years	Other Directorships Held
Michael A. Latham, 43	President (since 2007).	Head (since 2007) of Americas iShares, BGI; Chief Operating Officer (2003-2007) of the Intermediary Investor and Exchange Traded Products Business of BGI; Director and Chief Financial Officer (since 2005) of Barclays Global Investors International, Inc.	None.
Geoffrey D. Flynn, 52	Executive Vice President and Chief Operating Officer (since 2008).	Chief Operating Officer (since 2008) of U.S. iShares, BGI; Director (2007-2008) of Mutual Fund Operations of BGI; President (2003-2007) of Van Kampen Investors Services; Managing Director (2002-2007) of Morgan Stanley; President (2002-2007) of Morgan Stanley Trust, FSB.	None.

168 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Trustee and Officer Information (Unaudited) (Continued)

iSHARES^® TRUST

Officers (Continued)

Name, Age	Position(s), Length of Service	Principal Occupation(s) During Past 5 Years	Other Directorships Held
Jack Gee, 49	Treasurer and Chief Financial Officer (since 2008).	Senior Director (since 2009) of Fund Administration of Intermediary Investor Business of BGI; Director (2004-2009) of Fund Administration of Intermediary Investor Business of BGI; Treasurer and Chief Financial Officer (2004) of Parnassus Investments.	None.
Eilleen M. Clavere, 57	Secretary (since 2007).	Director (since 2006) of Legal Administration of Intermediary Investor Business of BGI; Legal Counsel and Vice President (2005-2006) of Atlas Funds, Atlas Advisers, Inc. and Atlas Securities, Inc.; Counsel (2001-2005) of Kirkpatrick & Lockhart LLP.	None.
Ira P. Shapiro, 46	Vice President and Chief Legal Officer (since 2007).	Associate General Counsel (since 2004) of BGI; First Vice President (1993-2004) of Merrill Lynch Investment Managers.	None.
Amy Schioldager, 46	Executive Vice President (since 2007).	Global Head (since 2008) of Index Equity, BGI; Global Head (since 2006-2008) of U.S. Indexing, BGI; Head (2001-2006) of Domestic Equity Portfolio Management, BGI.	None.
Patrick O’Connor, 41	Vice President (since 2007).	Head (since 2006) of iShares Portfolio Management, BGI; Senior Portfolio Manager (1999-2006) of BGI.	None.
Lee Sterne, 43	Vice President (since 2007).	Head (since 2007) of U.S. Fixed Income Index and iShares, BGI; Senior Portfolio Manager (2004-2007) of BGI; Portfolio Manager (2001-2004) of BGI.	None.
Matt Tucker, 36	Vice President (since 2007).	Director (since 2009) of Fixed Income Investment Strategy, BGI; Head (2005-2008) of U.S. Fixed Income Investment Solutions, BGI; Fixed Income Investment Strategist (2003-2005) of BGI.	None.

TRUSTEE AND OFFICER INFORMATION 169

Notes:

170 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes:

NOTES 171

The iShares^® Family of Funds

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

iShares Russell Domestic Index Funds	Trading Symbol
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 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 Morningstar Domestic 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 Dow Jones Domestic Index Funds
iShares Dow Jones U.S.	IYY
iShares KLD Socially Responsible Index Funds
iShares FTSE KLD 400 Social	DSI
iShares FTSE KLD Select Social	KLD
iShares NYSE Domestic Index Funds
iShares NYSE Composite	NYC
iShares NYSE 100	NY
iShares Domestic Specialty Index Funds
iShares S&P U.S. Preferred Stock	PFF
iShares Dow Jones Select Dividend	DVY

iShares North American Sector/Subsector Index Funds	Trading Symbol
iShares S&P North American Technology Sector	IGM
iShares S&P North American Technology-Multimedia Networking	IGN
iShares S&P North American Technology-Semiconductors	IGW
iShares S&P North American Technology-Software	IGV
iShares S&P North American Natural Resources Sector	IGE
iShares U.S. Domestic Sector Index Funds
iShares Dow Jones U.S. Basic Materials Sector	IYM
iShares Dow Jones U.S. Consumer Goods Sector	IYK
iShares Dow Jones U.S. Consumer Services Sector	IYC
iShares Dow Jones U.S. Energy Sector	IYE
iShares Dow Jones U.S. Financial Sector	IYF
iShares Dow Jones U.S. Healthcare Sector	IYH
iShares Dow Jones U.S. Industrial Sector	IYJ
iShares Dow Jones U.S. Technology Sector	IYW
iShares Dow Jones U.S. Telecommunications Sector	IYZ
iShares Dow Jones U.S. Utilities Sector	IDU
iShares Domestic Subsector Index Funds
iShares Dow Jones Transportation Average	IYT
iShares Dow Jones U.S. Aerospace & Defense	ITA
iShares Dow Jones U.S. Broker-Dealers	IAI
iShares Dow Jones U.S. Financial Services	IYG
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 Nasdaq Biotechnology	IBB
iShares Domestic Real Estate Index Funds
iShares Cohen & Steers Realty Majors	ICF
iShares Dow Jones U.S. Real Estate	IYR
iShares FTSE NAREIT Real Estate 50	FTY
iShares FTSE NAREIT Industrial/Office Capped	FIO
iShares FTSE NAREIT Mortgage Plus Capped	REM
iShares FTSE NAREIT Residential Plus Capped	REZ
iShares FTSE NAREIT Retail Capped	RTL
iShares Target Risk Index Funds
iShares S&P Conservative Allocation	AOK
iShares S&P Moderate Allocation	AOM
iShares S&P Growth Allocation	AOR
iShares S&P Aggressive Allocation	AOA

172 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

The iShares^® Family of Funds (Continued)

iShares International Country Index Funds	Trading Symbol
iShares FTSE China (HK Listed)	FCHI
iShares FTSE/Xinhua China 25	FXI
iShares MSCI Australia	EWA
iShares MSCI Austria Investable Market	EWO
iShares MSCI Belgium Investable Market	EWK
iShares MSCI Brazil	EWZ
iShares MSCI Canada	EWC
iShares MSCI Chile Investable Market	ECH
iShares MSCI France	EWQ
iShares MSCI Germany	EWG
iShares MSCI Hong Kong	EWH
iShares MSCI Israel Capped Investable Market	EIS
iShares MSCI Italy	EWI
iShares MSCI Japan	EWJ
iShares MSCI Japan Small Cap	SCJ
iShares S&P/TOPIX 150	ITF
iShares MSCI Malaysia	EWM
iShares MSCI Mexico Investable Market	EWW
iShares MSCI Netherlands Investable Market	EWN
iShares MSCI All Peru Capped	EPU
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 Thailand Investable Market	THD
iShares MSCI Turkey Investable Market	TUR
iShares MSCI United Kingdom	EWU
iShares International Index Funds
iShares MSCI ACWI ex US	ACWX
iShares MSCI EAFE	EFA
iShares MSCI EAFE Growth	EFG
iShares MSCI EAFE Value	EFV
iShares MSCI EAFE Small Cap	SCZ
iShares FTSE Developed Small Cap ex-North America	IFSM
iShares MSCI Emerging Markets	EEM
iShares S&P Emerging Markets Infrastructure	EMIF
iShares MSCI BRIC	BKF
iShares MSCI EMU	EZU
iShares MSCI All Country Asia ex Japan	AAXJ
iShares MSCI Pacific ex-Japan	EPP
iShares S&P Asia 50	AIA
iShares S&P Europe 350	IEV
iShares S&P Latin America 40	ILF
iShares International/Global Real Estate Index Funds
iShares S&P Developed ex-U.S. Property	WPS
iShares FTSE EPRA/NAREIT Developed Real Estate ex-U.S.	IFGL
iShares FTSE EPRA/NAREIT Developed Asia	IFAS
iShares FTSE EPRA/NAREIT Developed Europe	IFEU
iShares FTSE EPRA/NAREIT North America	IFNA
iShares International Specialty Index Funds
iShares Dow Jones International Select Dividend	IDV

iShares Target Date Index Funds	Trading Symbol
iShares S&P Target Date Retirement Income	TGR
iShares S&P Target Date 2010	TZD
iShares S&P Target Date 2015	TZE
iShares S&P Target Date 2020	TZG
iShares S&P Target Date 2025	TZI
iShares S&P Target Date 2030	TZL
iShares S&P Target Date 2035	TZO
iShares S&P Target Date 2040	TZV
iShares Global Index Funds
iShares MSCI ACWI	ACWI
iShares S&P Global 100	IOO
iShares MSCI Kokusai	TOK
iShares Global Sector Index Funds
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 Global Theme Based Index Funds
iShares S&P Global Clean Energy	ICLN
iShares S&P Global Infrastructure	IGF
iShares S&P Global Nuclear Energy	NUCL
iShares S&P Global Timber & Forestry	WOOD
iShares U.S. Multisector Bond Funds
iShares Barclays Aggregate	AGG
iShares Barclays Government/Credit	GBF
iShares Barclays Intermediate Government/Credit	GVI
iShares U.S. Government Bond Funds
iShares Barclays Short Treasury	SHV
iShares Barclays 1-3 Year Treasury	SHY
iShares Barclays 3-7 Year Treasury	IEI
iShares Barclays 7-10 Year Treasury	IEF
iShares Barclays 10-20 Year Treasury	TLH
iShares Barclays 20+ Year Treasury	TLT
iShares Barclays TIPS	TIP
iShares Barclays Agency	AGZ
iShares U.S. Credit Bond Funds
iShares Barclays Credit	CFT
iShares Barclays 1-3 Year Credit	CSJ
iShares Barclays Intermediate Credit	CIU
iShares iBoxx $ Investment Grade Corporate	LQD
iShares iBoxx $ High Yield Corporate	HYG
iShares U.S. Securitized Bond Funds
iShares Barclays MBS	MBB

iSHARES FAMILY OF FUNDS 173

The iShares^® Family of Funds (Continued)

iShares AMT-Free Municipal Bond Funds	Trading Symbol
iShares S&P National AMT-Free Municipal	MUB
iShares S&P Short Term National AMT-Free Municipal	SUB
iShares S&P California AMT-Free Municipal	CMF
iShares S&P New York AMT-Free Municipal	NYF

iShares International Bond Funds	Trading Symbol
iShares JPMorgan USD Emerging Markets	EMB
iShares S&P/Citigroup International Treasury	IGOV
iShares S&P/Citigroup 1-3 Year International Treasury	ISHG

iShares^® is a registered trademark of Barclays Global Investors, N.A. (“BGI”). The iShares Funds are not sponsored, endorsed, issued, sold or promoted by Cohen & Steers Capital Management, Inc., Dow Jones & Company, Inc., European Public Real Estate Association (“EPRA^®”), FTSE International Limited (“FTSE”), FTSE/Xinhua Index Limited (“FXI”), iBoxx^®, J.P. Morgan Securities Inc., MSCI Inc., Morningstar Inc., The NASDAQ OMX Group, Inc., National Association of Real Estate Investment Trusts (“NAREIT”), New York Stock Exchange, Inc., Frank Russell Company or Standard & Poor’s, nor are they sponsored or endorsed by Barclays Capital. 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 except Barclays Capital, which is an affiliate of BGI. 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/Residential/Retail/Mortgage REITs or Industrial/Office Index; all rights vest in NAREIT. Neither FTSE nor NAREIT makes any warranty regarding the FTSE EPRA/NAREIT Global Real Estate ex-US/North America/Europe/Asia Index; all rights vest in FTSE, NAREIT, and EPRA. All rights in the FTSE Developed Small Cap ex-North America Index vest in FTSE. “FTSE” is a trade- and servicemark of London Stock Exchange and The Financial Times Limited; “Xinhua” is a trade- and servicemark of Xinhua Financial Network Limited. “NAREIT^®” is a trademark of NAREIT; “EPRA^®” is a trademark of EPRA.

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

This advertising section does not constitute part of the 2009 Annual Report.

iS-1241-0909

174 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

For more information:

WWW.iSHARES.COM

1-800-iShares (1-800-474-2737)

BGI-AR-72-0709

The iShares Funds are distributed by SEI Investments Distribution Co. (SEI). Barclays Global Fund Advisors (BGFA) serves as an advisor to the iShares Funds. BGFA is a subsidiary of Barclays Global Investors. N.A. (BGI). neither of which is affiliated with SEI.

The iShares Funds are not sponsored, endorsed, issued, sold or promoted by FTSE International Limited (“FTSE”), FTSE/Xinhua Index Limited (“FXI”) or MSCI Inc., nor do these companies make any representation regarding the advisability of investing in the iShares Funds. FXI does not make any warranty regarding the FTSE/Xinhua Index. All rights in the FTSE/Xinhua Index vest in FXI. All rights in the FTSE Developed Small Cap ex-North America Index vest in FTSE. “FTSE” is a trade- and servicemark of London Stock Exchange and The Financial Times Limited; “Xinhua” is a trade- and servicemark of Xinhua Financial Network Limited. Neither SEI nor BGI, nor any of their affiliates, are affiliated with the companies listed above.

© 2009 Barclays Global Investors. All rights reserved. iShares® is a registered trademark of Barclays Global Investors, N.A. All other trademarks, servicemarks or registered trademarks are the property of their respective owners.

Investing involves risk, including possible loss of principal.

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

The Funds file their complete schedules of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the SEC’s website or may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The iShares FTSE/Xinhua China 25 Index Fund and the iShares FTSE Series also disclose their complete schedules of portfolio holdings on a daily and monthly basis on the Funds’ website. The iShares MSCI Series discloses its complete schedules of portfolio holdings on a monthly basis on the Funds’ website.

Certain financial information required by regulations or listing exchange rules in jurisdictions outside the U.S. in which iShares Funds are cross-listed may be publicly filed in those jurisdictions. This information is available upon request bycalling1-800-474-2737.

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

iShares® LET’S BUILD A BETTER INVESTMENT WORLD.® BARCLAYS GLOBAL INVESTORS

2009 ANNUAL REPORT TO SHAREHOLDERS

I Shares®

MSCI SERIES

JULY 31, 2009

Would you prefer to receive materials like this electronically? See inside cover for details.

iShares MSCI EAFE Index Fund

iShares®

iShares®

Dear iShares Shareholder:

Electronic delivery is the easiest, most convenient way to receive reporting on your iShares holdings. In addition, it’s a way we can all care for our environment. To that end, we are pleased to offer shareholder reports and prospectuses online.

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

1. Go to www.icsdelivery.com.

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

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

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

Your information and email address will be kept confidential and only used to deliver documents to you. If at any time you are not satisfied, you can cancel electronic delivery at www.icsdelivery.com and once again receive physical delivery of your materials. If you have any questions, please contact your brokerage firm or financial adviser.

Once you have enrolled, you will no longer receive prospectuses and shareholder reports in the mail. Instead, you will receive e-mail notifications announcing that the shareholder report or prospectus has been posted on the iShares website at www.iShares.com.

Table of Contents

Management’s Discussion of Fund Performance	1
Shareholder Expenses (Unaudited)	4
Schedule of Investments	5
Financial Statements	18
Financial Highlights	21
Notes to Financial Statements	22
Report of Independent Registered Public Accounting Firm	29
Tax Information (Unaudited)	30
Board Review and Approval of Investment Advisory Contract (Unaudited)	31
Supplemental Information (Unaudited)	34
Trustee and Officer Information (Unaudited)	35
iShares Family of Funds	40

Management’s Discussion of Fund Performance

iSHARES^® MSCI EAFE INDEX FUND

(TICKER: EFA)

INVESTMENT OBJECTIVE

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 MSCI Inc. as an equity benchmark for its 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, 2009 (the “reporting period”), the total return for the Fund was (22.38)%, while the total return for the Index was (22.60)%.

MARKET OVERVIEW AND DISCUSSION OF PERFORMANCE

Most international markets declined during the reporting period, as reduced U.S. consumer spending exerted downward pressure on European and Japanese exporters. Europe’s unemployment rate hit 9.4% in June, its highest rate in ten years, and the region’s gross domestic product (GDP) declined during the period. On the positive side, inflation in the “Eurozone” was historically low at the end of the reporting period. Meanwhile, the United Kingdom economy also declined, although more moderately than in Continental Europe.

In Japan, exports dropped about 50% in the first half of 2009 as GDP declined a record 13.5% during the fourth quarter of 2008 and 14.2% in the first quarter of 2009. However, Japan’s economy was showing signs of recovery by June. Manufacturers were boosting production after months of cutbacks. The yen also strengthened. In addition, the Bank of Japan declared the economy was showing signs of “leveling out.”

Australia’s economy, though weakened, did not enter a recession during the reporting period. Australian GDP contracted 0.6% in the fourth quarter of 2008, but grew 0.4% in the first quarter of 2009. Australia benefited from its close economic ties to China, whose economy held up relatively well during the period.

Value-oriented stocks generally outperformed growth stocks within the Index in the declining market environment. Overall, most market capitalizations and investment styles posted negative returns for the reporting period. However, markets rallied late in the period, helping to mitigate declines for the fiscal year, as business conditions appeared to gradually improve.

The ten largest holdings of the Fund represented approximately 14% of Fund net assets as of July 31, 2009. Only one company out of the top ten delivered a positive return as of July 31, 2009 – Telefonica SA, a telecommunications company based in Spain. HSBC Holdings PLC (banking), Total SA, a French oil company, and Vodafone Group PLC (mobile telecommunications), posted the most significant declines.

MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE 1

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI EAFE INDEX FUND

Performance as of July 31, 2009

Average Annual Total Returns
Year Ended 7/31/09			Five Years Ended 7/31/09			Inception to 7/31/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(22.38)%	(21.53)%	(22.60)%	4.69%	4.75%	4.80%	4.22%	4.28%	4.31%
Cumulative Total Returns
Year Ended 7/31/09			Five Years Ended 7/31/09			Inception to 7/31/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(22.38)%	(21.53)%	(22.60)%	25.73%	26.09%	26.42%	38.99%	39.57%	39.98%

Total returns for the period 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 period(s) indicated. “Cumulative Total Returns” represent the total change in value of an investment over the period(s) 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 primary 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 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 the Market 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 performance shown in the table(s) and chart(s) above 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 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.

2 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI EAFE INDEX FUND

PORTFOLIO ALLOCATION As of 7/31/09
Sector	Percentage of Net Assets
Financial	24.86	%
Consumer Non-Cyclical	18.29
Industrial	11.67
Consumer Cyclical	10.26
Basic Materials	8.95
Communications	8.59
Energy	8.13
Utilities	5.88
Technology	2.08
Diversified	0.92
Short-Term and Other Net Assets	0.37
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 7/31/09
Security	Percentage of Net Assets
HSBC Holdings PLC (United Kingdom)	1.91	%
BP PLC (United Kingdom)	1.69
Nestle SA Registered (Switzerland)	1.63
Total SA (France)	1.29
Banco Santander SA (Spain)	1.26
Toyota Motor Corp. (Japan)	1.25
Roche Holding AG Genusschein (Switzerland)	1.22
Vodafone Group PLC (United Kingdom)	1.17
BHP Billiton Ltd. (Australia)	1.16
Telefonica SA (Spain)	1.15
TOTAL	13.73	%

MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE 3

Shareholder Expenses (Unaudited)

iSHARES^® MSCI EAFE INDEX FUND

As a shareholder of the 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 the 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, 2009 to July 31, 2009.

ACTUAL EXPENSES

The first line 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 under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

The second line in the table below provides information about hypothetical account values and hypothetical expenses based on the 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 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.

	Beginning Account Value (2/1/09)	Ending Account Value (7/31/09)	Annualized Expense Ratio		Expenses Paid During Perioda (2/1/09 to 7/31/09)
Actual	$1,000.00	$1,305.60	0.35	%	$2.00
Hypothetical (5% return before expenses)	1,000.00	1,023.10	0.35		1.76

^a Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days).

4 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI EAFE INDEX FUND

July 31, 2009

Security	Shares	Value
COMMON STOCKS – 99.23%
AUSTRALIA – 7.50%
AGL Energy Ltd.	1,733,316	$	21,470,784
Alumina Ltd.	8,306,272		11,808,267
Amcor Ltd.	3,303,534		13,594,645
AMP Ltd.	7,024,269		32,818,698
Aristocrat Leisure Ltd.	1,480,674		5,293,121
Arrow Energy Ltd.a	2,024,334		7,219,770
Asciano Groupa	9,501,258		12,638,193
ASX Ltd.	673,712		21,048,200
Australia and New Zealand Banking Group Ltd.	8,107,996		124,902,993
AXA Asia Pacific Holdings Ltd.	3,581,760		12,655,209
Bendigo and Adelaide Bank Ltd.	1,027,144		7,002,113
BHP Billiton Ltd.	11,813,412		371,727,880
Billabong International Ltd.b	616,148		4,712,559
BlueScope Steel Ltd.	6,504,732		18,223,979
Boral Ltd.	2,588,248		10,737,183
Brambles Ltd.	4,984,616		24,822,323
Caltex Australia Ltd.	643,864		6,974,651
Coca-Cola Amatil Ltd.	2,472,054		19,174,476
Cochlear Ltd.	223,864		10,355,123
Commonwealth Bank of Australia	5,129,592		182,520,014
Computershare Ltd.	1,818,596		14,861,877
Crown Ltd.b	2,059,718		12,842,599
CSL Ltd.	2,184,234		55,474,613
CSR Ltd.	5,884,320		9,074,529
Dexus Property Group	18,853,276		11,441,780
Energy Resources of Australia Ltd.	237,718		4,999,960
Fairfax Media Ltd.b	8,736,333		10,712,852
Fortescue Metals Group Ltd.a	4,492,124		15,759,705
Foster’s Group Ltd.	7,274,384		32,596,344
Goodman Fielder Ltd.	4,751,162		5,470,582
GPT Group	33,026,812		14,552,125
Harvey Norman Holdings Ltd.b	2,866,474		7,816,382
Incitec Pivot Ltd.	5,958,940		13,672,943
Insurance Australia Group Ltd.	7,349,004		22,422,212

Security	Shares	Value
James Hardie Industries NVa	1,966,770	$	8,486,035
Leighton Holdings Ltd.	497,969		12,494,113
Lend Lease Corp. Ltd.	1,822,860		11,744,618
Lion Nathan Ltd.	1,026,558		9,993,653
Macquarie Airports	2,846,220		5,891,850
Macquarie Group Ltd.b	1,096,914		40,142,694
Macquarie Infrastructure Groupb	9,217,702		11,111,548
Metcash Ltd.	1,936,922		6,891,913
Mirvac Group	9,396,790		9,960,327
National Australia Bank Ltd.	6,653,972		134,588,198
Newcrest Mining Ltd.	1,722,656		42,963,902
Nufarm Ltd.	531,934		4,793,701
OneSteel Ltd.	4,782,076		11,886,981
Orica Ltd.	1,332,500		24,880,601
Origin Energy Ltd.	3,095,664		37,316,914
OZ Minerals Ltd.	12,091,638		11,258,669
Paladin Energy Ltd.a	2,027,532		7,686,285
Qantas Airways Ltd.	3,510,775		6,771,344
QBE Insurance Group Ltd.	3,469,830		56,250,542
Rio Tinto Ltd.	1,561,690		78,417,983
Santos Ltd.	2,919,774		35,245,182
Sims Metal Management Ltd.	567,112		13,130,399
Sonic Healthcare Ltd.	1,284,530		12,494,360
Stockland Corp. Ltd.	8,666,580		22,695,628
Suncorp-Metway Ltd.	4,453,235		26,285,598
Tabcorp Holdings Ltd.	2,628,559		15,821,228
Tatts Group Ltd.	5,199,948		10,591,293
Telstra Corp. Ltd.	15,219,282		44,663,502
Toll Holdings Ltd.	2,383,576		13,454,968
Transurban Group	4,181,918		15,053,840
Wesfarmers Ltd.	3,551,912		76,332,001
Wesfarmers Ltd. Partially Protected	488,228		10,488,155
Westfield Group	7,157,124		67,414,350
Westpac Banking Corp.	10,012,938		180,553,113
Woodside Petroleum Ltd.	1,730,118		65,731,846
Woolworths Ltd.	4,276,792		96,887,676
WorleyParsons Ltd.	586,300		12,580,323
			2,404,354,017

SCHEDULE OF INVESTMENTS 5

Schedule of Investments (Continued)

iSHARES^® MSCI EAFE INDEX FUND

July 31, 2009

Security	Shares	Value
AUSTRIA – 0.36%
Erste Group Bank AGb	667,316	$	23,169,677
Oesterreichische Elektrizitaetswirtschafts AG Class A	358,176		17,361,820
OMV AG	562,848		22,223,680
Raiffeisen International Bank Holding AGb	240,916		10,694,202
Telekom Austria AG	1,278,134		19,407,318
Vienna Insurance Group	207,870		9,548,529
voestalpine AG	420,004		11,593,619
			113,998,845
BELGIUM – 0.97%
Anheuser-Busch InBev NV	2,562,664		101,421,249
Belgacom SA	564,980		20,133,145
Colruyt SA	75,686		16,846,701
Delhaize Group	366,177		26,045,627
Dexia SAa,b	1,858,038		14,517,260
Fortisa,b	8,278,556		32,041,799
Groupe Bruxelles Lambert SA	363,282		28,677,597
KBC Groep NVa	563,914		11,960,357
Mobistar SA	150,151		9,518,776
Solvay SA	236,545		23,062,822
UCB SA	398,430		13,105,080
Umicore	549,458		14,271,172
			311,601,585
DENMARK – 0.89%
A.P. Moller - Maersk A/S Class A	1,072		6,450,146
A.P. Moller - Maersk A/S Class B	4,280		26,485,905
Carlsberg A/S Class B	376,298		25,973,328
Coloplast A/S Class B	139,646		10,183,920
Danske Bank A/Sa	1,516,918		31,410,804
DSV A/Sa,b	721,285		9,888,424
Novo Nordisk A/S Class B	1,607,528		94,122,045
Novozymes A/S Class B	179,088		16,009,942
Topdanmark A/Sa	101,270		13,767,868
Vestas Wind Systems A/Sa	729,144		51,091,519
			285,383,901
FINLAND – 1.18%
Elisa OYJ	585,234		10,678,438
Fortum OYJ	1,619,254		37,305,082
Kesko OYJ Class B	239,850		6,290,876

Security	Shares	Value
Kone OYJ Class B	598,026	$	20,238,212
Metso OYJ	434,928		9,119,797
Neste Oil OYJb	524,667		7,378,959
Nokia OYJ	13,127,790		173,835,373
Nokian Renkaat OYJ	421,070		8,847,125
Orion OYJ Class B	252,642		4,405,653
Outokumpu OYJ	471,172		9,185,056
Pohjola Bank PLC	609,760		6,310,757
Rautaruukki OYJ	325,765		7,010,934
Sampo OYJ Class A	1,583,010		32,879,177
Stora Enso OYJ Class Ra	2,241,798		14,175,259
UPM-Kymmene OYJ	1,948,648		20,305,813
Wartsila OYJ Class B	299,546		10,659,502
			378,626,013
FRANCE – 10.40%
Accor SAb	592,696		25,166,828
Aeroports de Paris	95,944		7,703,073
Air France-KLMa,b	489,294		6,126,034
Alcatel-Lucenta	8,430,994		23,188,901
ALSTOM	736,689		50,310,715
ArcelorMittal	3,071,146		109,941,460
Atos Origin SAa	221,728		10,054,641
AXA	5,576,246		117,241,869
BNP Paribas	2,943,226		213,436,606
Bouygues SA	777,114		32,925,900
Bureau Veritas SA	155,636		7,336,710
Cap Gemini SA	535,143		24,578,054
Carrefour SA	2,240,732		104,627,835
Casino Guichard-Perrachon SA	167,362		11,472,366
Christian Dior SA	155,636		13,437,764
CNP Assurances SA	120,458		10,948,663
Compagnie de Saint-Gobain	1,310,115		52,843,472
Compagnie Generale de Geophysique-Veritasa	475,436		9,584,982
Compagnie Generale des Etablissements Michelin Class B	528,736		37,975,519
Credit Agricole SAb	3,138,304		44,560,045
Danone SA	1,969,968		105,139,554
Dassault Systemes SA	289,952		14,428,889
Eiffage SAb	138,580		9,189,968
Electricite de France	817,622		40,310,609

6 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI EAFE INDEX FUND

July 31, 2009

Security	Shares	Value
Eramet	18,122	$	5,067,839
Essilor International SAb	769,652		42,446,673
Eurazeo	137,514		6,217,289
European Aeronautic Defence and Space Co.b	1,473,212		27,946,088
Eutelsat Communications	223,860		6,222,186
Fonciere des Regions	73,554		6,414,336
France Telecom SA	6,436,508		159,785,040
GDF Suez	4,235,218		160,950,095
Gecina SA	66,092		5,412,224
Hermes Internationalb	196,144		29,323,869
Icade	70,752		6,158,951
Iliad SAb	57,564		6,112,691
Klepierreb	310,206		8,822,279
Lafarge SA	688,824		49,493,086
Lagardere SCA	502,086		18,653,569
L’Air Liquide SA	875,186		90,900,638
L’Oreal SA	849,602		73,247,058
LVMH Moet Hennessy Louis Vuitton SA	830,414		74,512,548
Natixisa	3,533,790		9,153,326
Neopost SA	163,098		13,816,123
PagesJaunes Groupe SAb	523,266		5,615,883
Pernod Ricard SAb	730,210		56,442,115
PPR SA	280,358		31,078,770
PSA Peugeot Citroen SAa	611,884		18,460,369
Publicis Groupe SAb	505,284		17,866,178
Renault SAa	672,646		28,533,025
Safran SA	716,599		11,023,147
Sanofi-Aventis	3,736,330		243,458,478
Schneider Electric SA	838,942		75,812,995
SCOR SE	670,514		16,013,214
SES SA	1,073,462		21,093,544
Societe BIC	183,352		10,934,683
Societe Generale	1,628,848		104,033,931
Sodexo	398,684		20,879,753
STMicroelectronics NV	2,636,218		20,029,252
Suez Environnement SA	1,008,436		19,115,225
Technip SA	357,543		21,502,978
Thales SA	375,232		15,778,680
Total SA	7,495,046		413,461,608
Unibail-Rodamco SE	287,820		50,027,764

Security	Shares	Value
Vallourec SAb	192,946	$	25,248,590
Veolia Environnement	1,328,236		45,439,362
Vinci SA	1,434,836		72,642,665
Vivendi SAb	4,173,390		106,650,747
			3,334,329,321
GERMANY – 7.63%
Adidas AG	722,748		30,381,643
Allianz SE Registered	1,607,528		157,711,839
BASF SE	3,277,950		163,399,547
Bayer AG	2,752,412		168,030,115
Bayerische Motoren Werke AG	1,210,976		55,677,810
Beiersdorf AG	329,631		16,510,923
Celesio AG	382,694		10,140,529
Commerzbank AGa,b	2,608,502		20,340,121
Daimler AG Registered	3,227,848		148,591,860
Deutsche Bank AG Registered	1,982,760		127,593,922
Deutsche Boerse AG	703,560		55,459,454
Deutsche Lufthansa AG Registered	860,262		11,562,154
Deutsche Post AG Registered	3,000,790		47,244,779
Deutsche Postbank AGa	328,328		9,021,138
Deutsche Telekom AG Registered	10,034,258		127,892,363
E.ON AG	6,764,836		254,732,876
Fraport AG	110,864		5,057,970
Fresenius Medical Care AG & Co. KGaA	767,520		35,060,241
GEA Group AG	499,954		8,144,224
Hannover Rueckversicherung AG Registereda	206,804		8,370,756
Hochtief AG	159,900		9,548,529
K+S AG	540,462		30,174,531
Linde AG	483,964		45,436,188
MAN SE	404,014		27,780,356
Merck KGaA	259,038		23,981,498
METRO AG	416,806		24,009,352
Muenchener Rueckversicherungs- Gesellschaft AG Registered	737,672		110,952,580
Puma AG	34,112		8,600,266
QIAGEN NVa	708,890		13,457,336
RWE AG	1,501,994		126,170,031

SCHEDULE OF INVESTMENTS 7

Schedule of Investments (Continued)

iSHARES^® MSCI EAFE INDEX FUND

July 31, 2009

Security	Shares	Value
Salzgitter AG	155,636	$	15,699,457
SAP AG	3,028,506		141,690,925
Siemens AG Registered	2,915,510		231,474,001
SolarWorld AGb	295,282		7,141,931
ThyssenKrupp AG	1,253,616		38,389,984
TUI AGa,b	733,408		4,699,847
United Internet AG Registereda	410,410		5,207,636
Volkswagen AG	313,404		112,086,313
Wacker Chemie AG	53,300		7,076,007
			2,444,501,032
GREECE – 0.40%
Hellenic Telecommunications Organization SA SP ADR	5,171,192		40,542,145
National Bank of Greece SA SP ADR	14,977,826		88,818,508
			129,360,653
HONG KONG – 2.57%
Bank of East Asia Ltd.	5,543,240		18,453,506
BOC Hong Kong (Holdings) Ltd.	11,193,000		23,858,990
Cheung Kong (Holdings) Ltd.	6,420,000		82,921,013
Chinese Estates Holdings Ltd.b	2,132,000		3,741,292
CLP Holdings Ltd.	6,396,000		43,492,520
Esprit Holdings Ltd.b	3,944,200		28,499,842
Foxconn International Holdings Ltd.a	7,492,000		5,239,533
Hang Lung Group Ltd.	2,132,000		11,045,064
Hang Lung Properties Ltd.	8,528,000		31,250,792
Hang Seng Bank Ltd.	2,345,200		38,097,906
Henderson Land Development Co. Ltd.	5,350,000		35,344,288
Hong Kong and China Gas Co. Ltd. (The)	15,990,432		35,777,072
Hong Kong Exchanges and Clearing Ltd.	3,731,000		70,383,056
Hongkong Electric Holdings Ltd.	5,350,000		29,511,100
Hutchison Whampoa Ltd.	7,490,000		56,102,154
Kerry Properties Ltd.	2,134,000		11,014,122
Li & Fung Ltd.	8,762,200		25,834,191
Link REIT (The)	7,995,000		18,156,270

Security	Shares	Value
Mongolia Energy Corp. Ltd.a	10,685,000	$	4,108,528
MTR Corp. Ltd.	6,951,000		25,202,818
New World Development Co. Ltd.	8,528,599		20,358,460
Noble Group Ltd.	5,360,000		7,768,385
NWS Holdings Ltd.	3,216,000		6,199,578
Orient Overseas International Ltd.	1,070,000		5,991,961
Shangri-La Asia Ltd.	4,288,000		6,838,624
Sino Land Co. Ltd.	4,264,000		8,704,006
Sun Hung Kai Properties Ltd.	5,330,000		81,084,251
Swire Pacific Ltd. Class A	4,280,000		48,073,754
Wharf (Holdings) Ltd. (The)	6,396,375		30,083,402
Wing Hang Bank Ltd.	533,000		5,113,328
Yue Yuen Industrial Holdings Ltd.	2,132,000		5,790,750
			824,040,556
IRELAND – 0.27%
Anglo Irish Bank Corp. Ltd.c	3,570,811		506
CRH PLC	2,436,436		57,858,807
Elan Corp. PLCa	1,722,656		13,921,085
Kerry Group PLC Class A	652,392		15,372,316
Ryanair Holdings PLCa	177,504		780,135
			87,932,849
ITALY – 3.43%
A2A SpA	4,782,638		8,665,588
Alleanza Assicurazioni SpA	1,964,638		14,692,803
Assicurazioni Generali SpA	3,770,442		85,475,251
Atlantia SpA	942,344		20,681,407
Autogrill SpAa,b	960,466		9,266,373
Banca Carige SpA	1,997,684		5,661,601
Banca Monte dei Paschi di Siena SpAb	9,627,551		17,949,040
Banca Popolare di Milano Scrl	1,689,610		10,174,651
Banco Popolare SpAa	2,460,328		19,777,697
Enel SpA	23,969,008		129,556,608
Eni SpA	9,153,742		211,926,130
Fiat SpAa,b	2,692,730		29,701,068
Finmeccanica SpA	1,597,980		24,105,304
Intesa Sanpaolo SpAa	26,637,208		98,660,806
Italcementi SpAb	414,674		5,394,020
Luxottica Group SpAa	550,056		13,694,024

8 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI EAFE INDEX FUND

July 31, 2009

Security	Shares	Value
Mediaset SpA	2,833,428	$	17,042,515
Mediobanca SpA	1,739,712		24,294,795
Mediolanum SpAb	1,262,144		7,171,039
Parmalat SpA	6,406,495		15,922,163
Pirelli & C. SpAa,b	12,800,747		5,308,366
Prysmian SpA	381,628		6,530,511
Saipem SpA	858,130		23,115,662
Snam Rete Gas SpA	5,615,688		24,462,144
Telecom Italia SpA	34,414,744		53,573,071
Tenaris SA	1,661,937		25,070,087
Terna SpA	4,343,215		15,224,649
UniCredit SpAa	50,319,464		146,604,563
Unione di Banche Italiane ScpA	2,063,776		28,717,889
			1,098,419,825
JAPAN – 22.99%
Acom Co. Ltd.b	159,900		3,376,217
Advantest Corp.	534,200		11,588,035
AEON Co. Ltd.	2,238,600		21,634,666
AEON Credit Service Co. Ltd.	533,090		6,036,777
Aioi Insurance Co. Ltd.	1,066,000		5,039,130
Aisin Seiki Co. Ltd.	746,200		19,087,106
Ajinomoto Co. Inc.	2,140,000		20,411,996
All Nippon Airways Co. Ltd.b	2,136,000		5,923,673
Amada Co. Ltd.	2,140,000		13,533,064
Aozora Bank Ltd.a	3,198,000		4,400,840
Asahi Breweries Ltd.	1,385,800		21,909,018
Asahi Glass Co. Ltd.	3,613,000		31,197,920
Asahi Kasei Corp.	4,280,000		21,985,609
Astellas Pharma Inc.	1,599,090		60,640,947
Bank of Kyoto Ltd. (The)	2,140,000		19,287,988
Bank of Yokohama Ltd. (The)	5,367,000		28,922,433
Benesse Corp.	321,000		13,825,306
Bridgestone Corp.	2,025,400		34,978,283
Brother Industries Ltd.	533,000		4,775,976
Canon Inc.	3,731,000		138,352,119
Casio Computer Co. Ltd.	852,800		6,960,719
Central Japan Railway Co.	5,350		32,090,446
Chiba Bank Ltd. (The)	3,198,000		20,626,840
Chubu Electric Power Co. Inc.	2,345,200		56,169,505
Chugai Pharmaceutical Co. Ltd.	959,400		17,485,782

Security	Shares	Value
Chugoku Electric Power Co. Inc. (The)	852,800	$	17,755,655
Chuo Mitsui Trust Holdings Inc.	3,218,000		11,155,418
Citizen Watch Co. Ltd.	1,279,200		6,906,968
Coca-Cola West Co. Ltd.	378,600		7,369,565
Cosmo Oil Co. Ltd.	1,066,000		3,169,053
Credit Saison Co. Ltd.	639,600		8,304,487
Dai Nippon Printing Co. Ltd.	2,140,000		31,157,519
Daicel Chemical Industries Ltd.	1,070,000		6,777,772
Daido Steel Co. Ltd.	1,433,000		5,900,898
Daiichi Sankyo Co. Ltd.	2,451,895		44,301,270
Daikin Industries Ltd.	852,800		30,817,081
Daito Trust Construction Co. Ltd.	319,800		15,654,898
Daiwa House Industry Co. Ltd.	2,132,000		21,925,815
Daiwa Securities Group Inc.	5,350,000		31,472,242
Dena Co. Ltd.	1,076		3,269,991
Denso Corp.	1,599,000		46,947,896
Dentsu Inc.b	750,700		15,756,065
DIC Corp.	3,210,000		4,484,794
Dowa Holdings Co. Ltd.	1,070,000		4,855,717
East Japan Railway Co.	1,172,600		66,886,055
Eisai Co. Ltd.	963,000		34,091,181
Electric Power Development Co. Ltd.	535,000		15,792,321
Elpida Memory Inc.a,b	427,400		4,848,910
FamilyMart Co. Ltd.	321,000		10,385,839
Fanuc Ltd.	666,400		54,392,857
Fast Retailing Co. Ltd.	213,200		27,524,849
Fuji Electric Holdings Co. Ltd.	1,070,000		1,865,854
Fuji Heavy Industries Ltd.	2,132,000		8,555,323
Fuji Media Holdings Inc.	1,922		3,054,768
FUJIFILM Holdings Corp.	1,705,600		55,363,244
Fujitsu Ltd.	7,490,000		48,939,335
Fukuoka Financial Group Inc.	4,269,000		18,610,589
Furukawa Electric Co. Ltd. (The)	2,140,000		10,273,439
GS Yuasa Corp.b	1,066,000		9,686,328
Gunma Bank Ltd.	2,140,000		12,364,095
Hankyu Hanshin Holdings Inc.	4,276,000		19,584,390
Hikari Tsushin Inc.	107,500		2,320,631
Hino Motors Ltd.	1,070,000		3,551,867

SCHEDULE OF INVESTMENTS 9

Schedule of Investments (Continued)

iSHARES^® MSCI EAFE INDEX FUND

July 31, 2009

Security	Shares	Value
Hirose Electric Co. Ltd.	107,500	$	11,970,167
Hiroshima Bank Ltd. (The)	3,198,000		13,236,115
Hitachi Construction Machinery Co. Ltd.b	320,200		5,647,521
Hitachi Ltd.	11,726,000		39,170,839
Hokkaido Electric Power Co. Inc.	213,200		4,118,649
Hokuhoku Financial Group Inc.	6,396,000		14,512,695
Hokuriku Electric Power Co.	319,800		7,273,145
Honda Motor Co. Ltd.	5,756,400		184,432,166
Hoya Pentax HD Corp.	1,492,400		35,822,617
IBIDEN Co. Ltd.	535,000		17,703,136
Idemitsu Kosan Co. Ltd.	107,200		8,907,527
IHI Corp.a	2,936,000		4,934,713
INPEX Corp.	3,198		24,322,202
Isetan Mitsukoshi Holdings Ltd.b	1,172,600		12,354,827
Isuzu Motors Ltd.	5,330,000		9,462,367
ITO EN Ltd.b	214,000		3,347,298
ITOCHU Corp.	5,350,000		39,789,905
Itochu Techno-Solutions Corp.	214,000		6,406,849
J. Front Retailing Co. Ltd.	1,604,600		8,866,217
Japan Airlines Corp.a,b	2,140,000		3,619,308
Japan Real Estate Investment Corp.	1,072		8,918,788
Japan Steel Works Ltd. (The)	1,068,000		13,911,655
Japan Tobacco Inc.	15,994		46,035,569
JFE Holdings Inc.	1,705,675		68,266,419
JGC Corp.	1,070,000		18,433,741
Joyo Bank Ltd. (The)	3,210,000		16,253,165
JS Group Corp.	1,070,480		16,507,849
JSR Corp.	670,900		12,023,272
Kajima Corp.	3,198,000		8,969,652
Kamigumi Co. Ltd.	1,070,000		8,868,428
Kansai Electric Power Co. Inc. (The)	2,771,600		61,578,171
Kao Corp.	2,132,000		48,039,708
Kawasaki Heavy Industries Ltd.	5,350,000		13,712,905
Kawasaki Kisen Kaisha Ltd.	3,210,000		12,038,132
KDDI Corp.	9,594		50,592,867
Keihin Electric Express Railway Co. Ltd.	2,140,000		17,736,856

Security	Shares	Value
Keio Corp.	2,140,000	$	12,768,738
Keyence Corp.	117,649		23,098,480
Kikkoman Corp.	1,070,000		12,442,775
Kinden Corp.	1,070,000		8,947,109
Kintetsu Corp.b	6,420,000		29,741,268
Kirin Holdings Co. Ltd.	3,210,000		47,747,886
Kobe Steel Ltd.	10,700,000		20,569,358
Komatsu Ltd.	3,210,000		52,232,681
Konami Corp.	428,000		9,059,509
Konica Minolta Holdings Inc.	2,140,000		23,266,979
Kubota Corp.	4,280,000		38,306,214
Kuraray Co. Ltd.	1,605,000		18,090,918
Kurita Water Industries Ltd.b	428,200		14,124,145
Kyocera Corp.	642,000		51,389,674
Kyowa Hakko Kirin Co. Ltd.	1,066,000		12,205,893
Kyushu Electric Power Co. Inc.	1,604,600		34,386,092
Lawson Inc.	321,000		13,252,062
Makita Corp.	428,800		10,585,430
Marubeni Corp.	6,396,000		29,361,332
Marui Group Co. Ltd.	1,172,600		8,363,836
Matsui Securities Co. Ltd.	426,400		4,044,742
Mazda Motor Corp.	3,216,000		8,378,255
Meiji Holdings Co. Ltd.a	250,652		10,058,203
Minebea Co. Ltd.	2,140,000		8,654,866
Mitsubishi Chemical Holdings Corp.	4,264,000		19,036,714
Mitsubishi Corp.	4,690,400		93,123,126
Mitsubishi Electric Corp.	6,805,000		49,610,484
Mitsubishi Estate Co. Ltd.	4,269,000		70,720,237
Mitsubishi Gas Chemical Co. Inc.	2,132,000		13,056,946
Mitsubishi Heavy Industries Ltd.b	10,660,000		42,440,674
Mitsubishi Materials Corp.	4,264,000		11,511,613
Mitsubishi Motors Corp.a,b	12,828,000		23,582,121
Mitsubishi UFJ Financial Group Inc.	32,513,080		193,312,708
Mitsubishi UFJ Lease & Finance Co. Ltd.	223,860		6,819,623
Mitsui & Co. Ltd.	6,076,200		75,765,002
Mitsui Chemicals Inc.	2,140,000		7,800,620

10 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI EAFE INDEX FUND

July 31, 2009

Security	Shares	Value
Mitsui Engineering & Shipbuilding Co. Ltd.	3,210,000	$	8,092,862
Mitsui Fudosan Co. Ltd.	3,198,000		58,453,910
Mitsui Mining & Smelting Co. Ltd.a,b	3,210,000		8,800,987
Mitsui O.S.K. Lines Ltd.	4,297,000		26,045,160
Mitsui Sumitomo Insurance Group Holdings Inc.	1,385,848		35,375,919
Mitsumi Electric Co. Ltd.	319,800		7,844,246
Mizuho Financial Group Inc.b	42,213,600		95,340,344
Mizuho Trust & Banking Co. Ltd.a	5,360,000		6,869,268
Murata Manufacturing Co. Ltd.	856,000		41,723,199
Namco Bandai Holdings Inc.	852,800		9,531,795
NEC Corp.a	6,437,000		22,449,540
NGK Insulators Ltd.	1,070,000		24,109,985
NGK Spark Plug Co. Ltd.	1,070,000		11,734,650
Nidec Corp.	428,000		30,797,836
Nikon Corp.	1,070,000		21,378,643
Nintendo Co. Ltd.	359,100		96,532,055
Nippon Building Fund Inc.	2,144		19,143,863
Nippon Electric Glass Co. Ltd.	1,201,500		13,858,365
Nippon Express Co. Ltd.	3,210,000		14,668,313
Nippon Meat Packers Inc.	1,070,000		13,038,500
Nippon Mining Holdings Inc.	2,665,000		12,597,825
Nippon Oil Corp.	5,350,000		28,212,616
Nippon Paper Group Inc.	320,700		8,220,054
Nippon Sheet Glass Co. Ltd.	3,210,000		9,542,833
Nippon Steel Corp.	18,211,000		72,503,482
Nippon Telegraph and Telephone Corp.	1,705,600		70,055,108
Nippon Yusen Kabushiki Kaisha	4,264,000		18,140,869
Nipponkoa Insurance Co. Ltd.	2,144,000		12,725,038
Nishi-Nippon City Bank Ltd. (The)	4,265,000		10,752,666
Nissan Motor Co. Ltd.	8,741,200		63,266,839
Nisshin Seifun Group Inc.	1,127,200		13,628,942
Nisshin Steel Co. Ltd.	4,280,000		8,137,822
Nissin Foods Holdings Co. Ltd.	321,000		10,183,518
Nitori Co. Ltd.	106,600		7,592,290
Nitto Denko Corp.	642,000		20,569,358
NOK Corp.	535,000		6,524,870

Security	Shares	Value
Nomura Holdings Inc.	8,954,400	$	77,978,860
Nomura Real Estate Holdings Inc.	213,200		3,726,717
NSK Ltd.	2,140,000		11,532,328
NTN Corp.	2,140,000		8,609,906
NTT Data Corp.	4,280		14,342,350
NTT DoCoMo Inc.	53,300		76,818,740
Obayashi Corp.	2,132,000		9,473,565
Oji Paper Co. Ltd.	3,210,000		13,859,026
Olympus Corp.	746,200		21,321,120
Omron Corp.	884,900		14,259,537
Oracle Corp. Japan	106,600		4,266,463
Oriental Land Co. Ltd.	214,000		14,252,429
ORIX Corp.	362,440		22,805,984
Osaka Gas Co. Ltd.	7,490,000		24,784,390
Panasonic Corp.	6,822,468		107,502,516
Promise Co. Ltd.b	373,100		3,907,566
Rakuten Inc.	24,518		15,659,377
Resona Holdings Inc.b	1,705,600		25,047,837
Ricoh Co. Ltd.	2,140,000		27,920,374
Rohm Co. Ltd.	428,000		31,652,083
Sankyo Co. Ltd.	213,200		12,631,420
SANYO Electric Co. Ltd.a,b	6,407,000		14,268,438
Sapporo Hokuyo Holdings Inc.a	2,146,000		7,191,281
Sapporo Holdings Ltd.	2,140,000		12,858,659
SBI Holdings Inc.b	60,762		12,210,484
Secom Co. Ltd.	746,200		31,746,520
Sega Sammy Holdings Inc.	746,238		9,783,130
Seiko Epson Corp.	533,000		8,152,193
Sekisui Chemical Co. Ltd.	2,140,000		12,566,416
Sekisui House Ltd.	2,140,000		20,052,314
Seven & I Holdings Co. Ltd.	2,665,080		62,151,138
77 Bank Ltd. (The)	2,140,000		12,588,897
Sharp Corp.	4,280,000		47,343,243
Shikoku Electric Power Co. Inc.	213,200		6,349,304
Shimamura Co. Ltd.	106,600		9,585,545
Shimano Inc.	321,000		13,083,460
Shimizu Corp.	2,132,000		8,712,096
Shin-Etsu Chemical Co. Ltd.	1,385,800		74,243,185
Shinsei Bank Ltd.a,b	5,330,000		7,838,647
Shionogi & Co. Ltd.	1,070,000		22,019,329
Shiseido Co. Ltd.	1,070,000		17,354,693

SCHEDULE OF INVESTMENTS 11

Schedule of Investments (Continued)

iSHARES^® MSCI EAFE INDEX FUND

July 31, 2009

Security	Shares	Value
Shizuoka Bank Ltd. (The)	3,208,000	$	31,407,700
Showa Denko K.K.	4,280,000		7,913,021
Showa Shell Sekiyu K.K.	852,800		9,487,002
SMC Corp.	214,000		24,008,824
SoftBank Corp.	2,675,400		56,630,401
Sojitz Corp.	4,690,400		9,755,756
Sompo Japan Insurance Inc.	3,210,000		21,176,323
Sony Corp.	3,517,800		98,850,937
Sony Financial Holdings Inc.	3,201		9,808,621
Stanley Electric Co. Ltd.	670,900		13,841,563
Sumco Corp.	426,400		7,950,628
Sumitomo Chemical Co. Ltd.	6,420,000		31,629,602
Sumitomo Corp.	3,944,200		38,822,579
Sumitomo Electric Industries Ltd.	2,558,400		31,686,051
Sumitomo Heavy Industries Ltd.	2,140,000		10,273,438
Sumitomo Metal Industries Ltd.	11,726,000		29,070,182
Sumitomo Metal Mining Co. Ltd.	1,066,000		15,957,246
Sumitomo Mitsui Financial Group Inc.b	3,198,000		136,056,516
Sumitomo Realty & Development Co. Ltd.	1,463,000		29,968,486
Sumitomo Rubber Industries Inc.	533,000		4,602,406
Sumitomo Trust and Banking Co. Ltd. (The)	5,340,000		29,057,408
Suruga Bank Ltd.	1,070,000		11,307,527
Suzuken Co. Ltd.	321,040		9,628,333
Suzuki Motor Corp.	1,172,600		29,439,718
T&D Holdings Inc.	906,100		26,461,033
Taiheiyo Cement Corp.	2,132,000		3,202,647
Taisei Corp.	2,132,000		4,815,169
Taisho Pharmaceutical Co. Ltd.	1,070,000		20,524,398
Taiyo Nippon Sanso Corp.	1,070,000		10,228,479
Takashimaya Co. Ltd.	2,232,000		18,288,356
Takeda Pharmaceutical Co. Ltd.	2,665,000		107,221,493
TDK Corp.	444,000		23,227,271
Teijin Ltd.	3,210,000		10,116,077
Terumo Corp.	642,000		32,438,888

Security	Shares	Value
THK Co. Ltd.	319,800	$	5,220,539
Tobu Railway Co. Ltd.	3,210,000		19,389,149
Toho Co. Ltd.	746,200		13,200,282
Tohoku Electric Power Co. Inc.	1,818,600		37,653,874
Tokio Marine Holdings Inc.	2,451,800		70,827,775
Tokuyama Corp.	1,070,000		8,047,902
Tokyo Broadcasting System Holdings Inc.	179,100		2,797,644
Tokyo Electric Power Co. Inc. (The)	4,157,400		105,905,720
Tokyo Electron Ltd.	641,400		33,419,234
Tokyo Gas Co. Ltd.	8,528,000		31,085,834
Tokyo Steel Manufacturing Co. Ltd.	535,000		5,901,045
Tokyo Tatemono Co. Ltd.	1,066,000		5,195,903
Tokyu Corp.	4,280,000		20,861,600
Tokyu Land Corp.	2,140,000		8,587,425
TonenGeneral Sekiyu K.K.	2,140,000		20,322,076
Toppan Printing Co. Ltd.	2,140,000		21,715,847
Toray Industries Inc.	5,350,000		26,639,004
Toshiba Corp.	12,792,000		56,438,258
Tosoh Corp.	2,140,000		6,227,008
TOTO Ltd.	2,140,000		14,589,632
Toyo Seikan Kaisha Ltd.	639,600		13,639,246
Toyoda Gosei Co. Ltd.	321,000		9,880,036
Toyota Industries Corp.	852,800		22,933,641
Toyota Motor Corp.	9,594,000		402,122,590
Toyota Tsusho Corp.	749,000		11,440,160
Trend Micro Inc.b	535,000		18,377,541
Tsumura & Co.	213,200		6,853,217
Ube Industries Ltd.	4,280,000		12,319,134
Uni-Charm Corp.	214,000		17,219,812
Ushio Inc.	319,800		5,996,565
USS Co. Ltd.	149,800		9,315,783
West Japan Railway Co.	7,490		23,761,542
Yahoo! Japan Corp.	51,168		16,689,599
Yakult Honsha Co. Ltd.	319,800		7,004,391
Yamada Denki Co. Ltd.	298,480		18,561,916
Yamaguchi Financial Group Inc.	1,076,000		14,637,533
Yamaha Corp.	670,700		8,856,242
Yamaha Motor Co. Ltd.	857,700		10,613,694
Yamato Holdings Co. Ltd.	2,140,000		31,629,602

12 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI EAFE INDEX FUND

July 31, 2009

Security	Shares	Value
Yaskawa Electric Corp.	1,070,000	$	7,564,578
Yokogawa Electric Corp.	852,800		6,647,173
			7,367,796,082
NETHERLANDS – 2.42%
Aegon NV	5,026,190		36,755,294
Akzo Nobel NV	875,186		47,764,402
ASML Holding NV	1,591,628		41,452,467
Corio NV	141,778		7,815,104
Fugro NV CVA	192,946		8,612,696
Heineken NV	850,398		33,770,306
ING Groep NV CVA	7,127,276		90,922,050
Koninklijke Ahold NV	4,320,498		48,874,455
Koninklijke Boskalis Westminster NV	207,870		5,170,646
Koninklijke DSM NV	596,960		21,226,208
Koninklijke KPN NV	6,125,236		91,573,343
Koninklijke Philips Electronics NV	3,594,552		81,538,818
Randstad Holding NVa	356,044		12,266,188
Reed Elsevier NV	2,239,666		23,351,057
SBM Offshore NV	561,748		10,687,933
TNT NV	1,418,266		33,509,092
Unilever NV CVA	5,834,218		158,563,937
Wolters Kluwer NV	1,140,906		22,321,769
			776,175,765
NORWAY – 0.69%
DnB NOR ASAa	2,730,026		23,655,288
Norsk Hydro ASAa	2,316,418		13,546,524
Orkla ASA	3,063,684		24,157,511
Renewable Energy Corp. ASAa,b	1,272,782		10,062,915
Seadrill Ltd.	963,530		15,401,704
StatoilHydro ASA	4,017,754		85,499,403
Telenor ASAa	3,024,242		27,776,709
Yara International ASA	720,616		22,241,596
			222,341,650
PORTUGAL – 0.37%
Banco Comercial Portugues SA Registered	11,722,802		12,481,622
Banco Espirito Santo SA Registered	2,736,422		16,996,362
BRISA - Auto-estradas de Portugal SA	1,749,306		14,409,256

Security	Shares	Value
EDP Renovaveis SAa,b	866,658	$	8,851,586
Energias de Portugal SA	7,924,177		31,265,619
Galp Energia SGPS SA Class Bb	606,554		7,894,267
Portugal Telecom SGPS SA Registered	2,527,486		25,470,404
			117,369,116
SINGAPORE – 1.44%
CapitaLand Ltd.b	8,528,000		22,590,728
City Developments Ltd.	2,132,000		14,991,491
ComfortDelGro Corp. Ltd.	11,770,000		12,651,087
COSCO Corp. (Singapore) Ltd.b	3,198,000		2,905,156
DBS Group Holdings Ltd.	6,446,000		62,043,952
Fraser and Neave Ltd.	6,396,150		18,407,144
Genting Singapore PLCa,b	13,858,000		8,120,391
Golden Agri-Resources Ltd.	24,518,194		7,225,985
Keppel Corp. Ltd.	4,280,000		24,901,494
Olam International Ltd.	4,288,000		7,552,803
Oversea-Chinese Banking Corp. Ltd.	10,701,200		58,030,848
Singapore Airlines Ltd.	1,857,200		17,386,499
Singapore Exchange Ltd.b	3,204,000		19,374,418
Singapore Press Holdings Ltd.	9,594,750		23,886,240
Singapore Technologies Engineering Ltd.	7,462,000		13,609,140
Singapore Telecommunications Ltd.	23,452,285		56,921,048
United Overseas Bank Ltd.	5,350,000		65,592,733
UOL Group Ltd.	4,525,000		10,982,629
Wilmar International Ltd.	3,216,000		13,358,649
			460,532,435
SPAIN – 4.65%
Abertis Infraestructuras SA	1,097,980		22,618,286
Acciona SA	116,194		13,961,210
Acerinox SA	668,382		13,190,572
Actividades de Construcciones y Servicios SAb	528,736		28,028,122
Banco Bilbao Vizcaya Argentaria SA	12,513,774		204,380,964
Banco de Sabadell SAb	3,178,812		21,091,640
Banco de Valencia SA	729,300		7,072,321

SCHEDULE OF INVESTMENTS 13

Schedule of Investments (Continued)

iSHARES^® MSCI EAFE INDEX FUND

July 31, 2009

Security	Shares	Value
Banco Popular Espanol SAb	2,838,992	$	25,498,254
Banco Santander SA	27,994,829		403,247,035
Bankinter SA	1,057,472		11,948,870
Cintra Concesiones de Infraestructuras de Transporte SA	1,012,700		8,255,594
Criteria CaixaCorp SA	3,156,426		15,103,202
Enagas SA	700,362		13,777,018
Fomento de Construcciones y Contratas SA	34,112		1,361,398
Gamesa Corporacion Tecnologica SA	702,494		15,118,686
Gas Natural SDG SA	1,013,766		18,871,312
Grifols SA	508,482		9,209,502
Grupo Ferrovial SA	225,992		7,721,644
Iberdrola Renovables SA	3,471,962		15,948,492
Iberdrola SAb	13,121,394		111,989,195
Iberia Lineas Aereas de Espana SAa	1,807,936		4,013,973
Industria de Diseno Textil SA	790,972		42,321,657
Mapfre SA	2,560,532		9,511,109
Red Electrica Corporacion SA	423,996		19,818,937
Repsol YPF SA	2,687,386		62,065,576
Sacyr Vallehermoso SA	347,068		5,530,706
Telefonica SAb	14,936,792		369,638,196
Zardoya Otis SAb	427,466		9,660,276
Zardoya Otis SA Newb,c	21,373		483,007
			1,491,436,754
SWEDEN – 2.59%
Alfa Laval ABb	1,376,316		14,848,865
Assa Abloy AB Class B	1,192,854		19,484,390
Atlas Copco AB Class A	2,488,044		29,370,346
Atlas Copco AB Class B	1,522,248		15,984,513
Electrolux AB Class Ba	982,852		18,212,705
Getinge AB Class B	663,052		9,829,330
Hennes & Mauritz AB Class B	1,723,722		101,502,579
Holmen AB Class B	292,084		7,958,310
Husqvarna AB Class Ba,b	1,725,854		10,778,740
Investor AB Class B	1,427,374		25,176,391
Lundin Petroleum ABa	914,628		8,022,282

Security	Shares	Value
Millicom International Cellular SA SDRa	281,424	$	20,975,558
Nordea Bank AB	11,179,142		107,413,550
Sandvik AB	3,558,461		33,580,524
Scania AB Class B	1,067,066		12,376,577
Securitas AB Class B	1,274,936		11,900,079
Skandinaviska Enskilda Banken AB Class Aa	5,571,982		30,822,461
Skanska AB Class B	1,363,414		18,948,522
SKF AB Class B	1,471,430		21,863,519
SSAB AB Class A	777,964		10,091,225
Svenska Cellulosa AB Class B	2,083,786		26,528,921
Svenska Handelsbanken AB Class A	1,724,788		41,786,211
Swedbank AB Class Aa	1,381,536		10,572,060
Swedish Match AB	1,290,926		24,408,749
Tele2 AB Class B	1,168,336		15,571,826
Telefonaktiebolaget LM Ericsson AB Class B	10,481,978		101,865,955
TeliaSonera AB	7,958,756		50,579,990
Volvo AB Class Bb	3,899,780		28,236,778
			828,690,956
SWITZERLAND – 7.56%
ABB Ltd. Registereda	7,828,704		141,989,595
Actelion Ltd. Registereda	375,236		20,552,996
Adecco SA Registered	432,124		20,677,711
Aryzta AGa	308,074		10,734,286
Baloise Holding Registered	196,144		15,527,497
Compagnie Financiere Richemont SA Class A Bearer Units	1,939,054		47,312,017
Credit Suisse Group AG Registered	3,969,784		186,270,933
Geberit AG Registered	154,570		21,413,600
Givaudan SA Registered	30,914		20,523,162
Holcim Ltd. Registereda	856,278		51,635,254
Julius Baer Holding AG Registered	782,444		37,004,785
Kuehne & Nagel International AG Registered	194,012		16,043,733
Logitech International SA Registereda,b	724,609		12,118,896

14 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI EAFE INDEX FUND

July 31, 2009

Security	Shares	Value
Lonza Group AG Registered	186,550	$	18,356,000
Nestle SA Registered	12,762,152		521,514,002
Nobel Biocare Holding AG Registered	511,680		12,066,377
Novartis AG Registered	7,502,508		341,159,342
Roche Holding AG Genusschein	2,489,110		389,700,381
Schindler Holding AG Participation Certificates	143,910		9,226,286
SGS SA Registered	18,122		21,249,676
Sonova Holding AG Registered	183,352		16,056,610
Swatch Group AG (The) Bearer	114,062		20,698,080
Swatch Group AG (The) Registered	221,728		8,168,655
Swiss Life Holding AG Registereda	140,712		14,002,560
Swiss Reinsurance Co. Registered	1,240,824		47,269,486
Swisscom AG Registered	84,214		27,445,352
Syngenta AG Registered	346,450		79,381,715
Synthes Inc.b	241,982		27,003,055
UBS AG Registereda	11,422,190		165,668,187
Zurich Financial Services AG Registered	515,944		100,672,000
			2,421,442,229
UNITED KINGDOM – 20.92%
Admiral Group PLC	640,666		10,159,256
AMEC PLC	1,118,234		13,069,743
Anglo American PLC	4,664,816		149,257,808
Antofagasta PLC	1,396,460		17,525,468
Associated British Foods PLC	1,118,234		14,756,759
AstraZeneca PLC	5,116,800		237,775,319
Autonomy Corp. PLCa	756,860		14,743,434
Aviva PLC	9,452,222		54,963,810
BAE Systems PLC	12,635,298		64,308,606
Balfour Beatty PLC	1,541,436		7,813,348
Banco Santander SA	652,855		9,270,205
Barclays PLCd	39,008,138		195,496,327
Berkeley Group Holdings PLC (The) Unitsa	271,830		3,722,397
BG Group PLC	11,788,894		195,246,737
BHP Billiton PLC	7,786,064		201,754,012

Security	Shares	Value
BP PLC	65,869,206	$	542,948,681
British Airways PLCa	2,022,202		4,773,971
British American Tobacco PLC	7,023,874		216,355,358
British Land Co. PLCb	3,124,446		22,532,403
British Sky Broadcasting Group PLC	3,992,170		36,136,568
BT Group PLC	27,648,842		58,053,362
Bunzl PLC	1,523,314		13,081,707
Burberry Group PLC	1,688,544		12,877,022
Cable & Wireless PLC	9,064,198		21,669,050
Cadbury PLC	4,807,660		47,104,941
Cairn Energy PLCa	497,822		19,774,528
Capita Group PLC	2,077,634		22,991,407
Carnival PLC	638,534		18,461,872
Centrica PLC	17,985,552		65,672,708
Cobham PLC	4,616,846		13,708,382
Compass Group PLC	6,714,734		35,900,770
Diageo PLC	8,791,302		136,710,311
Drax Group PLC	1,320,774		8,764,055
Eurasian Natural Resources Corp.	988,182		14,146,354
Experian PLC	3,576,430		29,290,171
FirstGroup PLC	1,562,756		8,588,552
Fresnillo PLC	639,600		6,621,954
Friends Provident Group PLC	7,976,878		9,276,964
G4S PLC	4,262,934		15,088,696
GlaxoSmithKline PLC	18,323,474		349,038,295
Hammerson PLCb	2,617,030		14,957,472
Home Retail Group PLC	3,179,878		16,553,329
HSBC Holdings PLC	60,849,412		611,075,738
ICAP PLC	1,964,638		14,787,121
Imperial Tobacco Group PLC	3,610,542		102,415,961
InterContinental Hotels Group PLC	1,108,640		12,479,740
International Power PLC	5,595,434		23,677,986
Invensys PLC	2,961,348		12,666,435
Investec PLC	1,660,828		11,123,751
J Sainsbury PLC	3,800,290		20,003,487
Johnson Matthey PLC	800,566		18,793,412
Kazakhmys PLC	811,226		11,518,992
Kingfisher PLC	8,309,470		29,308,131
Ladbrokes PLC	2,117,076		6,159,689

SCHEDULE OF INVESTMENTS 15

Schedule of Investments (Continued)

iSHARES^® MSCI EAFE INDEX FUND

July 31, 2009

Security	Shares	Value
Land Securities Group PLC	2,860,078	$	25,320,039
Legal & General Group PLC	21,437,260		22,905,377
Liberty International PLCb	1,354,886		9,793,422
Lloyds Banking Group PLC	58,978,582		83,110,996
London Stock Exchange Group PLC	599,092		7,071,617
Lonmin PLCa	578,838		13,252,443
Man Group PLC	6,268,080		28,758,577
Marks & Spencer Group PLC	5,601,830		32,109,781
National Grid PLC	8,492,822		78,635,822
Next PLC	693,966		19,615,881
Old Mutual PLC	18,541,637		29,454,352
Pearson PLC	2,797,184		32,159,755
Prudential PLC	8,829,678		65,616,098
Randgold Resources Ltd.	276,094		16,638,211
Reckitt Benckiser PLC	2,101,086		100,179,289
Reed Elsevier PLC	3,805,620		26,703,465
Rexam PLC	1,818,596		7,115,304
Rio Tinto PLC	4,850,300		200,142,229
Rolls-Royce Group PLCa	6,608,134		45,382,310
Royal Bank of Scotland Group PLCa	1,879,696		1,397,484
Royal Dutch Shell PLC Class A	12,426,362		323,848,416
Royal Dutch Shell PLC Class B	9,437,298		243,133,005
RSA Insurance Group PLC	11,885,492		24,945,723
SABMiller PLC	3,189,553		73,341,792
Sage Group PLC (The)	4,856,696		15,732,970
Schroders PLC	467,974		7,583,745
Scottish & Southern Energy PLC	3,188,406		58,514,901
SEGRO PLC	2,430,692		11,122,035
Serco Group PLC	1,888,952		12,636,002
Severn Trent PLC	882,648		14,172,041
Shire PLC	2,019,004		29,723,187
Smith & Nephew PLC	3,260,894		25,705,878
Smiths Group PLC	1,272,804		15,192,851
Standard Chartered PLC	6,709,404		158,060,465
Standard Life PLC	7,834,034		25,689,578
Tesco PLC	27,465,490		167,336,210
Thomas Cook Group PLC	1,578,746		5,679,593
Thomson Reuters PLC	644,930		20,475,127
3i Group PLC	3,851,458		17,479,320

Security	Shares	Value
Tomkins PLC	3,000,790	$	8,805,502
TUI Travel PLC	2,343,068		8,817,714
Tullow Oil PLC	2,830,230		46,381,377
Unilever PLC	4,512,378		118,197,365
United Utilities Group PLC	2,516,826		18,807,634
Vedanta Resources PLC	524,472		15,337,908
Vodafone Group PLC	184,945,670		376,213,144
Whitbread PLC	829,348		11,900,059
Wm Morrison Supermarkets PLC	7,399,106		33,058,508
Wolseley PLCa	1,039,350		23,072,127
WPP PLC	4,179,958		31,998,090
Xstrata PLC	6,771,232		90,726,002
			6,704,003,276
TOTAL COMMON STOCKS
(Cost: $36,898,019,273)			31,802,336,860
PREFERRED STOCKS – 0.40%
GERMANY – 0.30%
Fresenius SE	331,526		18,697,435
Henkel AG & Co. KGaA	707,824		25,890,751
Porsche Automobil Holding SE	321,336		20,837,960
Volkswagen AG	384,826		30,001,833
			95,427,979
ITALY – 0.10%
Intesa Sanpaolo SpA RNC	3,132,974		8,794,712
Telecom Italia SpA RNC	21,445,788		24,034,967
			32,829,679
TOTAL PREFERRED STOCKS
(Cost: $173,719,343)			128,257,658
RIGHTS – 0.00%
BELGIUM – 0.00%
Fortisa,b,c	6,897,693		978
			978
UNITED KINGDOM – 0.00%
Rexam PLCa	661,307		942,859
			942,859
TOTAL RIGHTS
(Cost: $0)			943,837

16 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI EAFE INDEX FUND

July 31, 2009

Security	Shares	Value
WARRANTS – 0.00%
ITALY – 0.00%
Unione di Banche Italiane ScpA
(Expires 6/30/11)a	2,450,052	$	178,194
			178,194
SINGAPORE – 0.00%
Golden Agri-Resources Ltd. (Expires 7/23/12)a	1,304,797		113,102
			113,102
TOTAL WARRANTS (Cost: $0)			291,296
SHORT-TERM INVESTMENTS – 1.81%
MONEY MARKET FUNDS – 1.81%
Barclays Global Investors Funds Institutional Money Market Fund, SL Agency Shares
0.33%d,e,f	507,209,093		507,209,093
Barclays Global Investors Funds Prime Money Market Fund, SL Agency Shares
0.26%d,e,f	70,233,420		70,233,420
Barclays Global Investors Funds Treasury Money Market Fund, SL Agency Shares
0.12%d,e	1,140,555		1,140,555
			578,583,068
TOTAL SHORT-TERM INVESTMENTS
(Cost: $578,583,068)			578,583,068
TOTAL INVESTMENTS IN SECURITIES – 101.44%
(Cost: $37,650,321,684)			32,510,412,719
Other Assets, Less Liabilities – (1.44)%			(462,315,063	)
NET ASSETS – 100.00%		$	32,048,097,656

SDR – Swedish 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 using Level 3 inputs. 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 All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

SCHEDULE OF INVESTMENTS 17

Statement of Assets and Liabilities

iSHARES^® TRUST

July 31, 2009

	iShares MSCI EAFE Index Fund
ASSETS
Investments, at cost:
Unaffiliated issuers	$	36,764,220,835
Affiliated issuers (Note 2)		886,100,849
Total cost of investments	$	37,650,321,684
Investments in securities, at fair value (including securities on loana) (Note 1):
Unaffiliated issuers	$	31,736,333,324
Affiliated issuers (Note 2)		774,079,395
Total fair value of investments		32,510,412,719
Foreign currencies, at valueb		43,188,023
Receivables:
Dividends and interest		95,826,505
Total Assets		32,649,427,247
LIABILITIES
Payables:
Investment securities purchased		15,070,497
Collateral for securities on loan (Note 5)		577,442,513
Investment advisory fees (Note 2)		8,816,581
Total Liabilities		601,329,591
NET ASSETS	$	32,048,097,656
Net assets consist of:
Paid-in capital	$	39,921,549,229
Undistributed net investment income		17,833,546
Accumulated net realized loss		(2,752,932,784	)
Net unrealized depreciation on investments and translation of assets and liabilities in foreign currencies		(5,138,352,335	)
NET ASSETS	$	32,048,097,656
Shares outstandingc		639,600,000
Net asset value per share	$	50.11

^a Securities on loan with value of $552,787,360. See Note 5.

^b Cost of foreign currencies: $42,935,172.

^c No par value, unlimited number of shares authorized.

See notes to financial statements.

18 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statement of Operations

iSHARES^® TRUST

Year ended July 31, 2009

	iShares MSCI EAFE Index Fund
NET INVESTMENT INCOME
Dividends from unaffiliated issuersa	$	1,013,566,308
Dividends from affiliated issuers (Note 2)		6,000,905
Interest from affiliated issuers (Note 2)		36,298
Securities lending income from affiliated issuers (Note 2)		17,914,911
Total investment income		1,037,518,422
EXPENSES
Investment advisory fees (Note 2)		102,160,526
Foreign taxes (Note 1)		500,086
Total expenses		102,660,612
Net investment income		934,857,810
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments in unaffiliated issuers		(2,180,876,734	)
Investments in affiliated issuers (Note 2)		(22,590,809	)
In-kind redemptions		546,690,037
Foreign currency transactions		(735,717	)
Net realized loss		(1,657,513,223	)
Net change in unrealized appreciation (depreciation) on:
Investments		(8,298,244,632	)
Translation of assets and liabilities in foreign currencies		1,634,352
Net change in unrealized appreciation (depreciation)		(8,296,610,280	)
Net realized and unrealized loss		(9,954,123,503	)
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	(9,019,265,693	)

^a Net of foreign withholding tax of $82,551,033.

See notes to financial statements.

FINANCIAL STATEMENTS 19

Statements of Changes in Net Assets

iSHARES^® TRUST

	iShares MSCI EAFE Index Fund
	Year ended July 31, 2009			Year ended July 31, 2008
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	934,857,810		$	1,441,822,772
Net realized gain (loss)		(1,657,513,223	)		1,582,626,610
Net change in unrealized appreciation (depreciation)		(8,296,610,280	)		(9,268,956,761	)
Net decrease in net assets resulting from operations		(9,019,265,693	)		(6,244,507,379	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(1,002,586,439	)		(2,120,955,623	)
Total distributions to shareholders		(1,002,586,439	)		(2,120,955,623	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		7,416,139,859			8,674,382,311
Cost of shares redeemed		(6,043,566,179	)		(5,938,096,401	)
Net increase in net assets from capital share transactions		1,372,573,680			2,736,285,910
DECREASE IN NET ASSETS		(8,649,278,452	)		(5,629,177,092	)
NET ASSETS
Beginning of year		40,697,376,108			46,326,553,200
End of year	$	32,048,097,656		$	40,697,376,108
Undistributed net investment income included in net assets at end of year	$	17,833,546		$	75,388,211
SHARES ISSUED AND REDEEMED
Shares sold		174,000,000			111,000,000
Shares redeemed		(144,000,000	)		(83,400,000	)
Net increase in shares outstanding		30,000,000			27,600,000

See notes to financial statements.

20 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares MSCI EAFE Index Fund
	Year ended Jul. 31, 2009			Year ended Jul. 31, 2008			Year ended Jul. 31, 2007			Year ended Jul. 31, 2006			Year ended Jul. 31, 2005
Net asset value, beginning of year	$	66.76		$	79.60		$	65.68		$	54.00		$	45.49
Income from investment operations:
Net investment income		1.45	a		2.32	a		1.85	a		1.70	a		0.97
Net realized and unrealized gain (loss)b		(16.61	)		(11.85	)		13.60			11.09			8.34
Total from investment operations		(15.16	)		(9.53	)		15.45			12.79			9.31
Less distributions from:
Net investment income		(1.49	)		(3.31	)		(1.53	)		(1.11	)		(0.80	)
Total distributions		(1.49	)		(3.31	)		(1.53	)		(1.11	)		(0.80	)
Net asset value, end of year	$	50.11		$	66.76		$	79.60		$	65.68		$	54.00
Total return		(22.38	)%		(12.35	)%		23.75	%		23.91	%		20.53	%
Ratios/Supplemental data:
Net assets, end of year (000s)	$	32,048,098		$	40,697,376		$	46,326,553		$	29,320,817		$	17,721,489
Ratio of expenses to average net assets		0.35	%		0.34	%		0.34	%		0.35	%		0.36	%
Ratio of expenses to average net assets exclusive of foreign taxes		0.35	%		n/a			n/a			n/a			n/a
Ratio of net investment income to average net assets		3.19	%		3.07	%		2.48	%		2.77	%		2.57	%
Portfolio turnover ratec		7	%		12	%		5	%		7	%		8	%

^a Based on average shares outstanding throughout the period.

^b The amounts reported may not accord with the change in aggregate gains and losses in securities due to the timing of capital share transactions.

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

See notes to financial statements.

FINANCIAL HIGHLIGHTS 21

Notes to Financial Statements

iSHARES^® TRUST

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.

These financial statements relate only to the iShares MSCI EAFE Index Fund (the “Fund”).

The Fund’s investment objective 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 the Fund’s investment objective. The Fund 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.

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

1. SIGNIFICANT ACCOUNTING POLICIES

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”). 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.

SECURITY VALUATION

The securities and other assets of the Fund are valued pursuant to the pricing policy and procedures approved by the Board of Trustees of the Trust (the “Board”). Effective August 1, 2008, the Fund adopted Financial Accounting Standards Board (“FASB”) Statement of Financial Accounting Standards No. 157 (“FAS 157”), “Fair Value Measurements.” This standard establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. Inputs may be based on independent market data (“observable inputs”) or they may be internally developed (“unobservable inputs”). The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under FAS 157 are as follows:

• Level 1 – Inputs that reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access at the measurement date (a “Level 1 Price”);

22 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

• Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived principally from or corroborated by observable market data by correlation or other means (a “Level 2 Price”);

• Level 3 – Inputs that are unobservable for the asset or liability (a “Level 3 Price”).

The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. Inputs may include price information, volatility statistics, specific and broad credit data, liquidity statistics, and other factors. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3 of the fair value hierarchy.

The level of a value determined for a financial instrument within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement in its entirety. The categorization of a value determined for a financial instrument within the hierarchy is based upon the pricing transparency of the instrument and does not necessarily correspond to the Fund’s perceived risk of that instrument.

Investments whose values are based on quoted market prices in active markets, and whose values are therefore classified as Level 1 Prices, include active listed equities and certain U.S. government securities. The Fund does not adjust the quoted price for such instruments, even in situations where the Fund holds a large position and a sale could reasonably impact the quoted price.

Investments that trade in markets that are not considered to be active, but whose values are based on inputs such as quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs are classified within Level 2. These generally include certain U.S. government and sovereign obligations, most government agency securities, investment-grade corporate bonds, certain mortgage products, less liquid listed equities, and state, municipal and provincial obligations. As Level 2 investments include positions that are not traded in active markets and/or are subject to transfer restrictions, valuations may be adjusted to reflect illiquidity and/or non-transferability, which are generally based on available market information.

Investments whose values are classified as Level 3 Prices have significant unobservable inputs, as they may trade infrequently or not at all. Investments whose values are classified as Level 3 Prices may include unlisted securities related to corporate actions, securities whose trading have been suspended or which have been de-listed from their primary trading exchange, less liquid corporate debt securities (including distressed debt instruments), collateralized debt obligations, and less liquid mortgage securities (backed by either commercial or residential real estate). When observable prices are not available for these securities, the Fund uses one or more valuation techniques (e.g., the market approach or the income approach) for which sufficient and reliable data is available. Within Level 3 of the fair value hierarchy, the use of the market approach generally consists of using comparable market transactions, while the use of the income approach generally consists of the net present value of estimated future cash flows, adjusted as appropriate for liquidity, credit, market and/or other risk factors.

The inputs used by the Fund in estimating the value of Level 3 Prices may include the original transaction price, recent transactions in the same or similar instruments, completed or pending third-party transactions in the underlying investment or comparable issuers, and changes in financial ratios or cash flows. Level 3 Prices may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated by the Fund in the absence of market information. The fair value measurement of Level 3 Prices does not include

NOTES TO FINANCIAL STATEMENTS 23

Notes to Financial Statements (Continued)

iSHARES^® TRUST

transaction costs that may have been capitalized as part of the security’s cost basis. Assumptions used by the Fund due to the lack of observable inputs may significantly impact the resulting fair value and therefore the Fund’s results of operations.

Fair value pricing could result in a difference between the prices used to calculate the Fund’s net asset value and the prices used by the Fund’s underlying index, which in turn could result in a difference between the Fund’s performance and the performance of the Fund’s underlying index.

The following table summarizes the values of the Fund’s investments according to the fair value hierarchy as of July 31, 2009. The breakdown of the Fund’s investments into major categories is disclosed in its Schedule of Investments.

	Investments in Securities
Asset Class	Level 1		Level 2		Level 3		Total
Common Stocks	$	31,801,853,347	$	–	$	483,513	$	31,802,336,860
Preferred Stocks		128,257,658		–		–		128,257,658
Rights		942,859		–		978		943,837
Warrants		291,296		–		–		291,296
Short-Term Investments		578,583,068		–		–		578,583,068
	$	32,509,928,228	$	–	$	484,491	$	32,510,412,719

The following table provides the reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value for the year ended July 31, 2009:

Asset Class	Balance at Beginning of Year		Realized Gain (Loss) and Change in Unrealized Appreciation (Depreciation)			Net Purchases (Sales)			Net Transfers In (Out)		Balance at End of Year		Net Change in Unrealized Appreciation (Depreciation) from Investments Still Held at End of Year
Common Stocks	$	19,719,390	$	(24,115,191	)	$	(9,636,882	)	$	14,516,196	$	483,513	$	(23,144,399	)
Rights		–		–			–			978		978		978

SECURITY TRANSACTIONS AND INCOME RECOGNITION

Security transactions are accounted for on trade date. Dividend income is recognized on the ex-dividend date, net of any foreign taxes withheld at source, and interest income is accrued daily. Non-cash dividends received in the form of stock in an elective dividend, if any, are recorded as dividend income at fair value. Distributions received by the Fund 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.

24 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

FOREIGN CURRENCY TRANSLATION

The accounting records of the Fund 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.

The 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 Fund as a component of realized and unrealized gains and losses from investments for financial reporting purposes.

FOREIGN TAXES

The Fund may be subject to foreign taxes (a portion of which may be reclaimable) on income, corporate events, capital gains on investments or currency repatriation. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign markets in which the Fund invests. These foreign taxes, if any, are paid by the Fund and are disclosed in its Statement of Operations. Foreign taxes payable as of July 31, 2009, if any, are reflected in the Fund’s Statement of Assets and Liabilities.

DISTRIBUTIONS TO SHAREHOLDERS

Distributions to shareholders from net investment income, if any, are declared and distributed at least annually by the 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 Fund.

As of July 31, 2009, the tax year-end of the Fund, the components of net distributable earnings on a tax basis consisted of undistributed ordinary income of $53,451,359, unrealized depreciation of $5,769,082,294, and capital and other losses of $2,157,820,638, for net accumulated losses of $7,873,451,573.

For the years ended July 31, 2009 and July 31, 2008, the tax characterization of distributions paid for the 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 the Fund.

FEDERAL INCOME TAXES

The Fund is treated as an entity separate from the Trust’s other funds for federal income tax purposes. It is the policy of the 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 ordinary income and any net capital 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, 2009.

From November 1, 2008 to July 31, 2009, the Fund incurred net realized capital losses of $1,552,232,788. As permitted by tax regulations, the Fund has elected to defer those losses and treat them as arising in the year ending July 31, 2010.

NOTES TO FINANCIAL STATEMENTS 25

Notes to Financial Statements (Continued)

iSHARES^® TRUST

As of July 31, 2009, the tax year-end of the Fund, the Fund had tax basis net capital loss carryforwards of $17,452,072, $150,352 and $587,985,426 expiring in 2012, 2013 and 2017, respectively. Such losses may be applied against any net realized taxable gains in each succeeding year or until their respective expiration dates, whichever occurs first.

The Fund may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” The Fund 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 marked-to-market gains.

For the year ended July 31, 2009, the Fund 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 Fund 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 Fund’s 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, 2009 are disclosed in the Fund’s Statement of Operations.

As of July 31, 2009, the cost of investments for federal income tax purposes was $38,281,051,643. Net unrealized depreciation was $5,770,638,924, of which $1,196,223,812 represented gross unrealized appreciation on securities and $6,966,862,736 represented gross unrealized depreciation on securities.

Management has reviewed the tax positions as of July 31, 2009, inclusive of the prior three open tax return years, and has determined that no provision for income tax is required in the Fund’s financial statements.

2. AGREEMENTS AND OTHER TRANSACTIONS WITH AFFILIATES

Pursuant to an Investment Advisory Agreement with the Trust, Barclays Global Fund Advisors (“BGFA”) manages the investment of the 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 Fund, BGFA is entitled to an annual investment advisory fee based on the Fund’s allocable portion of the aggregate of the average daily net assets of the Fund and the iShares MSCI ACWI and iShares MSCI ACWI ex US Index Funds as follows:

Investment Advisory Fee	Aggregate 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

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 the Fund’s underwriter and distributor of the shares of the Fund, pursuant to a Distribution Agreement with the Trust. SEI does not receive a fee from the Fund for its distribution services.

26 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

Pursuant to an exemptive order issued by the U.S. Securities and Exchange Commission (“SEC”), the Fund is 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 Fund. BarCap and BGI are affiliates of BGFA, the Fund’s 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, 2009, BGI earned securities lending agent fees of $17,914,911.

The Fund may invest in certain money market funds managed by BGFA, the Fund’s 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. These money market funds seek to achieve their investment objectives by investing in high-quality, short-term money market instruments that, at the time of investment, have remaining maturities of 397 calendar days or less from the date of acquisition. 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 Fund from temporary cash investments are recorded as interest from affiliated issuers in the accompanying Statement of Operations. Income distributions earned by the Fund from the investment of securities lending collateral, if any, are included in securities lending income in the accompanying Statement of Operations.

For the year ended July 31, 2009, the 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:

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 Loss
Barclays PLC	28,159	19,163	8,314	39,008	$	195,496,327	$	6,000,905	$	(22,590,809	)

Certain trustees and officers of the Trust are also officers of BGI and/or BGFA.

3. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the year ended July 31, 2009, aggregated $2,047,441,186 and $2,074,470,975, respectively.

In-kind purchases and sales (see Note 4) for the year ended July 31, 2009, aggregated $7,311,614,410 and $5,969,733,462, respectively.

4. CAPITAL SHARE TRANSACTIONS

Capital shares are issued and redeemed by the Fund only in Creation Units or multiples thereof. Except when aggregated in Creation Units, shares of the Fund are not redeemable. Transactions in capital shares for the Fund are disclosed in detail in the Statements of Changes in Net Assets.

NOTES TO FINANCIAL STATEMENTS 27

Notes to Financial Statements (Continued)

iSHARES^® TRUST

The consideration for the purchase of Creation Units of the Fund generally consists of the in-kind deposit of a designated portfolio of equity securities, which constitutes an optimized representation of the securities involved in the 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.

5. LOANS OF PORTFOLIO SECURITIES

The 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 the 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 Fund of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. Any securities lending cash collateral may be reinvested in certain short-term instruments either directly on behalf of the Fund or through one or more joint accounts or money market funds, including those managed by BGFA; such reinvestments are subject to investment risk.

As of July 31, 2009, the Fund had loaned securities which were collateralized by cash. The cash collateral received was invested in money market funds managed by BGFA. The market value of the securities on loan as of July 31, 2009 and the value of the related collateral are disclosed in the Statement of Assets and Liabilities. Securities lending income, as disclosed in the Fund’s Statement 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.

6. BLACKROCK TRANSACTION

On June 16, 2009, Barclays PLC, the ultimate parent company of BGFA and BGI, accepted a binding offer and entered into an agreement to sell its interests in BGFA, BGI and certain affiliated companies, to BlackRock, Inc., (the “BlackRock Transaction”). The BlackRock Transaction is subject to certain regulatory approvals, as well as other conditions to closing.

Under the 1940 Act, completion of the BlackRock Transaction will cause the automatic termination of the Fund’s current investment advisory agreement with BGFA. In order for the management of the Fund to continue uninterrupted, the Board approved a new investment advisory agreement for the Fund subject to shareholder approval. A special meeting of shareholders of the Fund is scheduled to be held on November 4, 2009. Each shareholder of record as of the close of business on August 25, 2009 will receive notice of and be entitled to vote at the meeting.

7. REVIEW OF SUBSEQUENT EVENTS

In connection with the preparation of the financial statements of the Fund as of and for the year ended July 31, 2009, events and transactions through September 22, 2009, the date the financial statements are available to be issued, have been evaluated by the Fund’s management for possible adjustment and/or disclosure. No subsequent events requiring financial statement disclosure have been identified.

28 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Trustees of

iShares Trust:

In our opinion, the accompanying statement of assets and liabilities, including the schedule 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 MSCI EAFE Index Fund, (the “Fund”), at July 31, 2009, the results of its operations, the changes in its net assets and its 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 Fund’s 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, 2009 by correspondence with the custodian, transfer agent and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California

September 22, 2009

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM 29

Tax Information (Unaudited)

iSHARES^® TRUST

For corporate shareholders, 0.02% of the income dividends paid by the Fund during the fiscal year ended July 31, 2009 qualified for the dividends-received deduction.

For the fiscal year ended July 31, 2009, the Fund earned foreign source income of $1,101,872,404 and paid foreign taxes of $81,890,498 which it intends to pass through to its shareholders pursuant to Section 853 of the Internal Revenue Code (the “Code”).

Under Section 854(b)(2) of the Code, the Fund hereby designates the maximum amount of $964,849,201 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, 2009.

In January 2010, shareholders will receive Form 1099-DIV which will include their share of qualified dividend income distributed during the calendar year 2009. Shareholders are advised to check with their tax advisers for information on the treatment of these amounts on their income tax returns.

30 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory Contract (Unaudited)

iSHARES^® TRUST

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 Fund. 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 16-17, 2009, 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 Fund, the Board, including the Independent Trustees, advised by their independent counsel, considered the following factors, no one of which was controlling, and made the following conclusions:

NATURE, EXTENT AND QUALITY OF SERVICES PROVIDED BY BGFA

Based on management’s representations, the Board expected that there will be no diminution in the scope of services required of or provided by 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 Fund. The Board also considered BGFA’s compliance program and its compliance record with respect to the Fund. 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 Fund. 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 Fund for which BGFA provides investment advisory services, noting that such other series generally performed in line with relevant benchmarks over relevant periods. The Board also noted that the Fund had met its investment objectives consistently since its inception date. Based on review of this information, the Board concluded that the nature, extent and quality of services to be provided by BGFA to the Fund under the Advisory Contract were appropriate and mitigated in favor of the Board’s approval of the Advisory Contract for the coming year.

FUND’S EXPENSES AND PERFORMANCE OF THE FUND

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 the Fund in comparison with the same information for other registered investment companies objectively selected by Lipper as comprising the Fund’s applicable peer group pursuant to Lipper’s proprietary methodology and any registered investment companies that would otherwise have been excluded from Lipper’s comparison group due to certain differentiating factors, but were nonetheless included at the request of BGFA (the “Lipper Group”). Because there are few, if any, exchange traded funds or index funds that track indexes similar to that tracked by the Fund, the Lipper Group included in part mutual funds, closed-end funds, exchange traded funds, or 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 Group and to prepare this information. The Board further noted that due to the limitations in providing comparable funds in the various Lipper Group, the statistical information may or may not provide meaningful direct comparisons to the Fund. In addition, the Board reviewed statistical information prepared by Lipper regarding the performance of the Fund for the one-, three-, five-year and “last quarter” periods ended March 31, 2009, and a comparison of the Fund’s performance to its performance benchmark index for the same periods. To the extent that any of the comparison funds included in the Lipper Group track the same index as the Fund, Lipper also provided, and the Board reviewed, a comparison of such Fund’s performance

BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT 31

Board Review and Approval of Investment Advisory Contract

(Unaudited) (Continued)

iSHARES^® TRUST

to that of such relevant comparison funds for the same periods. The Board noted that the Fund generally performed in line with its performance benchmark index over the relevant periods. In considering this information, the Board noted that the Lipper Group includes funds that may have different investment objectives and/or benchmarks from the Fund. In addition, the Board noted that the Fund seeks to track its benchmark index and that during the prior year the Board received periodic reports on the Fund’s performance in comparison with its benchmark index. Such comparative performance information was also considered by the Board.

The Board also noted that the investment advisory fees and overall expenses for the Fund were generally lower than the median or average investment advisory fee rates and overall expenses of the funds in the Lipper Group. Based on this review, the Board concluded that the investment advisory fees and expense levels and the historical performance of the Fund, as managed by BGFA, as compared to the investment advisory fees and expense levels and performance of the funds in the Lipper Group, were satisfactory for the purposes of approving the Advisory Contract for the coming year.

COSTS OF SERVICES PROVIDED TO THE FUND AND PROFITS REALIZED BY BGFA AND AFFILIATES

The Board reviewed information about the profitability to BGFA of the Fund 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 from the Fund’s operations 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 Fund). The Board also discussed BGFA’s profit margin as reflected in the Fund’s profitability analysis and reviewed information regarding economies of scale (as discussed below). Based on this review, the Board concluded that the profits realized by BGFA and its affiliates under the Advisory Contract and from other relationships between the Fund and BGFA and/or its affiliates, if any, were within the range the Board considered reasonable and appropriate.

ECONOMIES OF SCALE

In connection with its review of the Fund’s profitability analysis, the Board reviewed information regarding economies of scale or other efficiencies that may result from increases in the Fund’s assets. The Board noted that the Fund’s asset size decreased over the past twelve months. The Board also reviewed BGFA’s historic profitability as investment adviser to the iShares fund complex and noted that BGFA had continued to make significant investments in the iShares fund complex, that expenses had grown at a pace similar to the growth in revenue, and that BGFA had incurred operating losses during earlier years when the iShares funds had not yet reached scale. In light of this history, the Board determined that the current breakpoints were appropriate and warranted. 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 appropriate sharing of economies of scale with the Fund’s shareholders.

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

The Board received and considered information regarding the Fund’s 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”). In reviewing the comparative investment advisory/management fee information, the Board considered the general structure of investment advisory/management fees in relation to the nature and extent of services provided to the 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 Fund and the Other Accounts under differing regulatory requirements and client guidelines. The Board noted that the investment advisory fee rate under the Advisory Contract was generally higher than the investment advisory/management fee

32 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory Contract

(Unaudited) (Continued)

iSHARES^® TRUST

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, 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.

OTHER BENEFITS TO BGFA AND/OR ITS AFFILIATES

The Board reviewed any ancillary revenue received by BGFA and/or its affiliates in connection with the services provided to the Fund 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 Fund in other funds for which BGFA provides investment advisory services and/or BGI provides administration services. The Board noted that while revenue to BGI in connection with securities lending agency services to the iShares funds increased overall as against the previous year, overall revenue increased by approximately the same percentage as overall expenses. 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 Fund. The Board further noted that any portfolio transactions on behalf of the Fund placed through a BGFA affiliate or purchased from an underwriting syndicate in which a BGFA affiliate participates, are reported to the Board pursuant to Rule 17e-1 or Rule 10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund’s shareholders.

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

BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT 33

Supplemental Information (Unaudited)

iSHARES^® TRUST

The table that follows presents information about the differences between the daily market price on secondary markets for shares of the iShares MSCI EAFE Index Fund (the “Fund”) and the Fund’s net asset value. Net asset value, or “NAV,” is the price per share at which the Fund issues and redeems shares. It is calculated in accordance with the standard formula for valuing mutual fund shares. The “Market Price” of the Fund generally is determined using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the Fund is listed for trading, as of the time that the Fund’s NAV is calculated. The Fund’s Market Price may be at, above or below its NAV. The NAV of the Fund will fluctuate with changes in the market value of its portfolio holdings. The Market Price of the 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 the Fund on a given day, generally at the time NAV is calculated. A premium is the amount that the Fund is trading above the reported NAV, expressed as a percentage of the NAV. A discount is the amount that the 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 the Fund. The information shown for the Fund is for five calendar years through the date of the most recent calendar quarter-end.

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 the table. All data presented here represents past performance, which cannot be used to predict future results.

iShares MSCI EAFE Index Fund

Period Covered: January 1, 2004 through June 30, 2009

Premium/Discount Range	Number of Days	Percentage of Total Days
Greater than 4.0%	5	0.36	%
Greater than 3.5% and Less than 4.0%	2	0.14
Greater than 3.0% and Less than 3.5%	4	0.29
Greater than 2.5% and Less than 3.0%	12	0.87
Greater than 2.0% and Less than 2.5%	12	0.87
Greater than 1.5% and Less than 2.0%	21	1.52
Greater than 1.0% and Less than 1.5%	84	6.08
Greater than 0.5% and Less than 1.0%	354	25.62
Between 0.5% and –0.5%	697	50.45
Less than –0.5% and Greater than –1.0%	112	8.10
Less than –1.0% and Greater than –1.5%	41	2.97
Less than –1.5% and Greater than –2.0%	17	1.23
Less than –2.0% and Greater than –2.5%	5	0.36
Less than –2.5% and Greater than –3.0%	6	0.43
Less than –3.0% and Greater than –3.5%	2	0.14
Less than –3.5% and Greater than –4.0%	3	0.22
Less than –4.0% and Greater than –4.5%	1	0.07
Less than –4.5% and Greater than –5.0%	2	0.14
Less than –5.0%	2	0.14
	1,382	100.00	%

34 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Trustee and Officer Information (Unaudited)

iSHARES^® TRUST

The Board of Trustees has responsibility for the overall management and operations of the Trust, including general supervision of the duties performed by BGFA and other service providers. Each Trustee serves until 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”) and Master Investment Portfolio (“MIP”) 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 179 portfolios within the fund complex. In addition, Lee T. Kranefuss serves as a Trustee for BGIF and MIP and oversees an additional 26 portfolios within the fund complex.

The address of each Trustee and Officer is c/o Barclays Global Investors, N.A., 400 Howard 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.

Interested Trustees and Officers

Name, Age	Position(s), Length of Service	Principal Occupation(s) During Past 5 Years	Other Directorships Held
*Lee T. Kranefuss, 47	Trustee and Chairman (since 2003).	Non-Executive Chairman (since 2009), iShares; Global Chief Executive Officer (2008-2009) of iShares/Intermediary Groups of BGI; Chief Executive Officer (2005-2008) of iShares Intermediary Index and Market Group of BGI; Chief Executive Officer (2003-2005) of the Intermediary Investor and Exchange Traded Products Business of BGI; Director (since 2005) of BGFA; Director, President and Chief Executive Officer (since 2005) of Barclays Global Investors International, Inc.; Director and Chairman (since 2005) of Barclays Global Investors Services.	Director (since 2003) of iShares, Inc.; Trustee (since 2001) of BGIF and MIP.

* Lee T. Kranefuss is deemed to be an “interested person” (as defined in the 1940 Act) of the Trust due to his affiliations with BGFA, the Funds’ investment adviser; BGI, the parent company of BGFA; and Barclays Global Investors Services, an affiliate of BGFA and BGI.

TRUSTEE AND OFFICER INFORMATION 35

Trustee and Officer Information (Unaudited)(Continued)

iSHARES^® TRUST

Independent Trustees

Name, Age	Position(s), Length of Service	Principal Occupation(s) During Past 5 Years	Other Directorships Held
George G.C. Parker, 70	Trustee (since 2000); Lead Independent Trustee (since 2006).	Dean Witter Distinguished Professor of Finance (since 1994), Emeritus, Stanford University: Graduate School of Business.	Director (since 2002) of iShares, Inc.; Lead Independent Director (since 2006) of iShares, Inc.; Director (since 1995) of Community First Financial Group; Director (since 1999) of Tejon Ranch Company; Director (since 2004) of Threshold Pharmaceuticals; Director (since 2007) of NETGEAR, Inc.
J. Darrell Duffie, 55	Trustee (since 2008).	Professor (since 1984) of Stanford University: Graduate School of Business.	Director (since 2008) of iShares, Inc.; Director (since 2008) of Moody’s Corp.
Cecilia H. Herbert, 60	Trustee (since 2005).	Chair (1994-2005) of Investment Committee, Archdiocese of San Francisco; Director (since 1998) and President (since 2007) of the Board of Directors, Catholic Charities CYO; Trustee (2004-2005) of Pacific Select Funds; Trustee (since 2002) and Chair (2006-2007) of the Finance and Investment Committees (since 2006) of the Thacher School.	Director (since 2005) of iShares, Inc.; Advisory Board Member (since 2009) of Forward Funds.
Charles A. Hurty, 65	Trustee (since 2005).	Retired. Partner, KPMG LLP (1968-2001).	Director (since 2005) of iShares, Inc.; Director (since 2002) of ProMark Absolute Return Strategies Fund LLC (1 portfolio); Director (since 2002) of Citigroup Alternative Investments Multi-Adviser Hedge Fund Portfolios LLC (1 portfolio); Director (since 2005) of CSFB Alternative Investments Fund (6 portfolios).
John E. Kerrigan, 54	Trustee (since 2005).	Chief Investment Officer (since 2002) of Santa Clara University.	Director (since 2005) of iShares, Inc.
*John E. Martinez, 48	Trustee (since 2003).	Director (since 2005) of EquityRock Capital Management; Director (since 2003) of Larkin Street Youth Services.	Director (since 2003) of iShares, Inc.; Chairman (since 2007) of Independent Review Committee, Canadian iShares Funds.

36 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Trustee and Officer Information (Unaudited) (Continued)

iSHARES^® TRUST

Independent Trustees (Continued)

Name, Age	Position(s), Length of Service	Principal Occupation(s) During Past 5 Years	Other Directorships Held
Robert H. Silver, 54	Trustee (since 2007).	President and Co-Founder (since 2006) of The Bravitas Group, Inc.; Member (since 2006) of Non-Investor Advisory Board of Russia Partners II, LP; Director and member (2006-2009) of the Audit and Compensation Committee of EPAM Systems, Inc.; President and Chief Operating Officer (2003-2005) and Director (1999-2005) of UBS Financial Services, Inc.; President and Chief Executive Officer (1999-2005) of UBS Services USA, LLC; Managing Director (2000-2005) of UBS America, Inc.; Director and Vice Chairman (since 2001) of the YMCA of Greater NYC; Broadway Producer (since 2006); Co- Founder and Vice President (since 2008) of Parentgiving Inc.	Director (since 2007) of iShares, Inc.

* Prior to August 13, 2009, John E. Martinez was deemed to be an “interested person” (as defined in the 1940 Act) of the Trust due to his affiliations with BGFA, the Funds’ investment adviser; BGI, the parent company of BGFA; and Barclays Global Investors Services, an affiliate of BGFA and BGI. Effective August 13, 2009, John E. Martinez is a non-interested person notwithstanding his former affiliation with BGFA and its affiliates prior to 2002.

Officers

Name, Age	Position(s), Length of Service	Principal Occupation(s) During Past 5 Years	Other Directorships Held
Michael A. Latham, 43	President (since 2007).	Head (since 2007) of Americas iShares, BGI; Chief Operating Officer (2003-2007) of the Intermediary Investor and Exchange Traded Products Business of BGI; Director and Chief Financial Officer (since 2005) of Barclays Global Investors International, Inc.	None.
Geoffrey D. Flynn, 52	Executive Vice President and Chief Operating Officer (since 2008).	Chief Operating Officer (since 2008) of U.S. iShares, BGI; Director (2007-2008) of Mutual Fund Operations of BGI; President (2003-2007) of Van Kampen Investors Services; Managing Director (2002-2007) of Morgan Stanley; President (2002-2007) of Morgan Stanley Trust, FSB.	None.

TRUSTEE AND OFFICER INFORMATION 37

Trustee and Officer Information (Unaudited) (Continued)

iSHARES^® TRUST

Officers (Continued)

Name, Age	Position(s), Length of Service	Principal Occupation(s) During Past 5 Years	Other Directorships Held
Jack Gee, 49	Treasurer and Chief Financial Officer (since 2008).	Senior Director (since 2009) of Fund Administration of Intermediary Investor Business of BGI; Director (2004-2009) of Fund Administration of Intermediary Investor Business of BGI; Treasurer and Chief Financial Officer (2004) of Parnassus Investments.	None.
Eilleen M. Clavere, 57	Secretary (since 2007).	Director (since 2006) of Legal Administration of Intermediary Investor Business of BGI; Legal Counsel and Vice President (2005-2006) of Atlas Funds, Atlas Advisers, Inc. and Atlas Securities, Inc.; Counsel (2001-2005) of Kirkpatrick & Lockhart LLP.	None.
Ira P. Shapiro, 46	Vice President and Chief Legal Officer (since 2007).	Associate General Counsel (since 2004) of BGI; First Vice President (1993-2004) of Merrill Lynch Investment Managers.	None.
Amy Schioldager, 46	Executive Vice President (since 2007).	Global Head (since 2008) of Index Equity, BGI; Global Head (since 2006-2008) of U.S. Indexing, BGI; Head (2001-2006) of Domestic Equity Portfolio Management, BGI.	None.
Patrick O’Connor, 41	Vice President (since 2007).	Head (since 2006) of iShares Portfolio Management, BGI; Senior Portfolio Manager (1999-2006) of BGI.	None.
Lee Sterne, 43	Vice President (since 2007).	Head (since 2007) of U.S. Fixed Income Index and iShares, BGI; Senior Portfolio Manager (2004-2007) of BGI; Portfolio Manager (2001-2004) of BGI.	None.
Matt Tucker, 36	Vice President (since 2007).	Director (since 2009) of Fixed Income Investment Strategy, BGI; Head (2005-2008) of U.S. Fixed Income Investment Solutions, BGI; Fixed Income Investment Strategist (2003-2005) of BGI.	None.

38 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes:

NOTES 39

The iShares^® Family of Funds

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

	Trading
iShares Russell Domestic Index Funds	Symbol
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 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 Morningstar Domestic 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 Dow Jones Domestic Index Funds
iShares Dow Jones U.S.	IYY
iShares KLD Socially Responsible Index Funds
iShares FTSE KLD 400 Social	DSI
iShares FTSE KLD Select Social	KLD
iShares NYSE Domestic Index Funds
iShares NYSE Composite	NYC
iShares NYSE 100	NY
iShares Domestic Specialty Index Funds
iShares S&P U.S. Preferred Stock	PFF
iShares Dow Jones Select Dividend	DVY

	Trading
iShares North American Sector/Subsector Index Funds	Symbol
iShares S&P North American Technology Sector	IGM
iShares S&P North American Technology-Multimedia   Networking	IGN
iShares S&P North American Technology-Semiconductors	IGW
iShares S&P North American Technology-Software	IGV
iShares S&P North American Natural Resources Sector	IGE
iShares U.S. Domestic Sector Index Funds
iShares Dow Jones U.S. Basic Materials Sector	IYM
iShares Dow Jones U.S. Consumer Goods Sector	IYK
iShares Dow Jones U.S. Consumer Services Sector	IYC
iShares Dow Jones U.S. Energy Sector	IYE
iShares Dow Jones U.S. Financial Sector	IYF
iShares Dow Jones U.S. Healthcare Sector	IYH
iShares Dow Jones U.S. Industrial Sector	IYJ
iShares Dow Jones U.S. Technology Sector	IYW
iShares Dow Jones U.S. Telecommunications Sector	IYZ
iShares Dow Jones U.S. Utilities Sector	IDU
iShares Domestic Subsector Index Funds
iShares Dow Jones Transportation Average	IYT
iShares Dow Jones U.S. Aerospace & Defense	ITA
iShares Dow Jones U.S. Broker-Dealers	IAI
iShares Dow Jones U.S. Financial Services	IYG
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 Nasdaq Biotechnology	IBB
iShares Domestic Real Estate Index Funds
iShares Cohen & Steers Realty Majors	ICF
iShares Dow Jones U.S. Real Estate	IYR
iShares FTSE NAREIT Real Estate 50	FTY
iShares FTSE NAREIT Industrial/Office Capped	FIO
iShares FTSE NAREIT Mortgage Plus Capped	REM
iShares FTSE NAREIT Residential Plus Capped	REZ
iShares FTSE NAREIT Retail Capped	RTL
iShares Target Risk Index Funds
iShares S&P Conservative Allocation	AOK
iShares S&P Moderate Allocation	AOM
iShares S&P Growth Allocation	AOR
iShares S&P Aggressive Allocation	AOA

40 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

The iShares^® Family of Funds (Continued)

	Trading
iShares International Country Index Funds	Symbol
iShares FTSE China (HK Listed)	FCHI
iShares FTSE/Xinhua China 25	FXI
iShares MSCI Australia	EWA
iShares MSCI Austria Investable Market	EWO
iShares MSCI Belgium Investable Market	EWK
iShares MSCI Brazil	EWZ
iShares MSCI Canada	EWC
iShares MSCI Chile Investable Market	ECH
iShares MSCI France	EWQ
iShares MSCI Germany	EWG
iShares MSCI Hong Kong	EWH
iShares MSCI Israel Capped Investable Market	EIS
iShares MSCI Italy	EWI
iShares MSCI Japan	EWJ
iShares MSCI Japan Small Cap	SCJ
iShares S&P/TOPIX 150	ITF
iShares MSCI Malaysia	EWM
iShares MSCI Mexico Investable Market	EWW
iShares MSCI Netherlands Investable Market	EWN
iShares MSCI All Peru Capped	EPU
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 Thailand Investable Market	THD
iShares MSCI Turkey Investable Market	TUR
iShares MSCI United Kingdom	EWU
iShares International Index Funds
iShares MSCI ACWI ex US	ACWX
iShares MSCI EAFE	EFA
iShares MSCI EAFE Growth	EFG
iShares MSCI EAFE Value	EFV
iShares MSCI EAFE Small Cap	SCZ
iShares FTSE Developed Small Cap ex-North America	IFSM
iShares MSCI Emerging Markets	EEM
iShares S&P Emerging Markets Infrastructure	EMIF
iShares MSCI BRIC	BKF
iShares MSCI EMU	EZU
iShares MSCI All Country Asia ex Japan	AAXJ
iShares MSCI Pacific ex-Japan	EPP
iShares S&P Asia 50	AIA
iShares S&P Europe 350	IEV
iShares S&P Latin America 40	ILF
iShares International/Global Real Estate Index Funds
iShares S&P Developed ex-U.S. Property	WPS
iShares FTSE EPRA/NAREIT Developed   Real Estate ex-U.S.	IFGL
iShares FTSE EPRA/NAREIT Developed Asia	IFAS
iShares FTSE EPRA/NAREIT Developed Europe	IFEU
iShares FTSE EPRA/NAREIT North America	IFNA
iShares International Specialty Index Funds
iShares Dow Jones International Select Dividend	IDV

	Trading
iShares Target Date Index Funds	Symbol
iShares S&P Target Date Retirement Income	TGR
iShares S&P Target Date 2010	TZD
iShares S&P Target Date 2015	TZE
iShares S&P Target Date 2020	TZG
iShares S&P Target Date 2025	TZI
iShares S&P Target Date 2030	TZL
iShares S&P Target Date 2035	TZO
iShares S&P Target Date 2040	TZV
iShares Global Index Funds
iShares MSCI ACWI	ACWI
iShares S&P Global 100	IOO
iShares MSCI Kokusai	TOK
iShares Global Sector Index Funds
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 Global Theme Based Index Funds
iShares S&P Global Clean Energy	ICLN
iShares S&P Global Infrastructure	IGF
iShares S&P Global Nuclear Energy	NUCL
iShares S&P Global Timber & Forestry	WOOD
iShares U.S. Multisector Bond Funds
iShares Barclays Aggregate	AGG
iShares Barclays Government/Credit	GBF
iShares Barclays Intermediate Government/Credit	GVI
iShares U.S. Government Bond Funds
iShares Barclays Short Treasury	SHV
iShares Barclays 1-3 Year Treasury	SHY
iShares Barclays 3-7 Year Treasury	IEI
iShares Barclays 7-10 Year Treasury	IEF
iShares Barclays 10-20 Year Treasury	TLH
iShares Barclays 20+ Year Treasury	TLT
iShares Barclays TIPS	TIP
iShares Barclays Agency	AGZ
iShares U.S. Credit Bond Funds
iShares Barclays Credit	CFT
iShares Barclays 1-3 Year Credit	CSJ
iShares Barclays Intermediate Credit	CIU
iShares iBoxx $ Investment Grade Corporate	LQD
iShares iBoxx $ High Yield Corporate	HYG
iShares U.S. Securitized Bond Funds
iShares Barclays MBS	MBB

iSHARES FAMILY OF FUNDS 41

The iShares^® Family of Funds (Continued)

	Trading
iShares AMT-Free Municipal Bond Funds	Symbol
iShares S&P National AMT-Free Municipal	MUB
iShares S&P Short Term National AMT-Free Municipal	SUB
iShares S&P California AMT-Free Municipal	CMF
iShares S&P New York AMT-Free Municipal	NYF

	Trading
iShares International Bond Funds	Symbol
iShares JPMorgan USD Emerging Markets	EMB
iShares S&P/Citigroup International Treasury	IGOV
iShares S&P/Citigroup 1-3 Year International Treasury	ISHG

iShares^® is a registered trademark of Barclays Global Investors, N.A. (“BGI”). The iShares Funds are not sponsored, endorsed, issued, sold or promoted by Cohen & Steers Capital Management, Inc., Dow Jones & Company, Inc., European Public Real Estate Association (“EPRA^®”), FTSE International Limited (“FTSE”), FTSE/Xinhua Index Limited (“FXI”), iBoxx^®, J.P. Morgan Securities Inc., MSCI Inc., Morningstar Inc., The NASDAQ OMX Group, Inc., National Association of Real Estate Investment Trusts (“NAREIT”), New York Stock Exchange, Inc., Frank Russell Company or Standard & Poor’s, nor are they sponsored or endorsed by Barclays Capital. 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 except Barclays Capital, which is an affiliate of BGI. 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/Residential/Retail/Mortgage REITs or Industrial/Office Index; all rights vest in NAREIT. Neither FTSE nor NAREIT makes any warranty regarding the FTSE EPRA/NAREIT Global Real Estate ex-US/North America/Europe/Asia Index; all rights vest in FTSE, NAREIT, and EPRA. All rights in the FTSE Developed Small Cap ex-North America Index vest in FTSE. “FTSE” is a trade- and servicemark of London Stock Exchange and The Financial Times Limited; “Xinhua” is a trade- and servicemark of Xinhua Financial Network Limited. “NAREIT^®” is a trademark of NAREIT; “EPRA^®” is a trademark of EPRA.

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

This advertising section does not constitute part of the 2009 Annual Report.

iS-1241-0909

42 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

For more information:

WWW.iSHARES.COM

1-800-iShares (1-800-474-2737)

The iShares Funds are distributed by SEI Investments Distribution Co. (SEI). Barclays Global Fund Advisors (BGFA) serves as an advisor to the iShares Funds. BGFA is a subsidiary of Barclays Global Investors, N.A. (BGI), neither of which is affiliated with SEI.

The iShares Funds are not sponsored, endorsed, issued, sold or promoted by MSCI Inc., nor does this company 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 company listed above.

©2009 Barclays global investors. All rights reserved. Ishares® is a registered trademark of Barclays global investors, n.a. all other trademarks, servicemarks or registered trademarks are the property of their respective owners.

Investing involves risk, including possible loss of principal

A description of the policies that the fund uses to determine how to vote proxies relating to portfolio securities and information about how the fund voted proxies relating to portfolio securities during the most recent twelve-month period ended june 30 is available without charge, upon request, by calling toll-free 1-800-474-2737; on the fund’s website at www.ishares.com; and on the u.s. securities and exchange commission (sec) website at www.sec.gov.

The fund files its complete schedule of portfolio holdings with the sec for the first and third quarters of each fiscal year on form n-q. the fund’s form n-q is available on the sec’s website or may be reviewed and copied at the sec’s public reference room in Washington, d.c. information on the operation of the public reference room may be obtained by calling 1-800-sec-0330. the fund also discloses its complete schedule of portfolio holdings on a monthly basis on the fund’s website.

Certain financial information required by regulations or listing exchange rules in jurisdictions outside the u.s. in which ishares funds are cross-listed may be publicly filed in those jurisdictions. This information is available upon request by calling 1-800-474-2737.

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

BGI-AR- -0709

Ishares®

LET’S BUILD A BETTER INVESTMENT WORLDR.

BARCLAYS GLOBAL INVESTORS

2009 ANNUAL REPORT TO SHAREHOLDERS ISHARES®S&P ALLOCATION SERIES ISHARES® S&P TARGET DATE SERIES JULY 31, 2009

Would you prefer to receive materials like this electronically? see inside cover for details.

iShares S&P Conservative Allocation Fund

iShares S&P Moderate Allocation Fund

iShares S&P Growth Allocation Fund

iShares S&P Aggressive Allocation Fund

iShares S&P Target Date Retirement Income Index Fund

iShares S&P Target Date 2010 Index Fund

iShares S&P Target Date 2015 Index Fund

iShares S&P Target Date 2020 Index Fund

iShares S&P Target Date 2025 Index Fund

iShares S&P Target Date 2030 Index Fund

iShares S&P Target Date 2035 Index Fund

iShares S&P Target Date 2040 Index Fund

ishares ® is not listed, electronic delivery may not be available. Please contact your brokerage firm

Dear iShares Shareholder:

Electronic delivery is the easiest, most convenient way to receive reporting on your iShares holdings. In addition, it’s a way we can all care for our environment. To that end, we are pleased to offer shareholder reports and prospectuses online.

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

1. Go to www.icsdelivery. Com.

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

3. Select your brokerage institution from the list that follows. If your brokerage firm or financial adviser.

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

Your information and email address will be kept confidential and only used to deliver documents to you. If at any time you are not satisfied, you can cancel electronic delivery at www.icsdelivery.com and once again receive physical delivery of your materials. If you have any questions, please contact your brokerage firm or financial adviser.

Once you have enrolled, you will no longer receive prospectuses and shareholder reports in the mail. Instead, you will receive e-mail notifications announcing that the shareholder report or prospectus has been posted on the iShares website at www.iShares.com.

Table of Contents

Management’s Discussions of Fund Performance	1
Shareholder Expenses (Unaudited)	14
Schedules of Investments	16
iShares S&P Conservative Allocation Fund (Ticker: AOK)	16
iShares S&P Moderate Allocation Fund (Ticker: AOM)	17
iShares S&P Growth Allocation Fund (Ticker: AOR)	18
iShares S&P Aggressive Allocation Fund (Ticker: AOA)	19
iShares S&P Target Date Retirement Income Index Fund (Ticker: TGR)	20
iShares S&P Target Date 2010 Index Fund (Ticker: TZD)	21
iShares S&P Target Date 2015 Index Fund (Ticker: TZE)	22
iShares S&P Target Date 2020 Index Fund (Ticker: TZG)	23
iShares S&P Target Date 2025 Index Fund (Ticker: TZI)	24
iShares S&P Target Date 2030 Index Fund (Ticker: TZL)	25
iShares S&P Target Date 2035 Index Fund (Ticker: TZO)	26
iShares S&P Target Date 2040 Index Fund (Ticker: TZV)	27
Financial Statements	28
Financial Highlights	40
Notes to Financial Statements	52
Report of Independent Registered Public Accounting Firm	60
Tax Information (Unaudited)	61
Board Review and Approval of Investment Advisory Contract (Unaudited)	62
Supplemental Information (Unaudited)	65
Trustee and Officer Information (Unaudited)	70
iShares Family of Funds	76

Management’s Discussion of Fund Performance

MARKET PERFORMANCE OVERVIEW FOR THE REPORTING PERIOD

(November 4, 2008 through July 31, 2009)

Stock markets throughout the world rallied during the reporting period, mitigating severe declines from 2008 during the first two quarters of 2009 as global economies responded to a challenging recession. Overall, most market capitalizations and investment styles posted positive returns for the reporting period as business and economic conditions appeared to gradually improve.

The broad U.S. stock market produced a slightly positive return in an environment of ongoing market volatility and changing market sentiment. After dipping to multi-year lows in early March 2009, major equity indices rebounded in the final months of the reporting period amid suggestions of a possible economic recovery. Manufacturing levels continued to fall, but declined less in the first quarter of 2009 than in previous quarters. Similarly, unemployment levels grew at a slower pace in the first quarter of 2009 than in prior quarters. In addition, gross domestic product (GDP) declined only 1.0% in the second quarter of 2009, after contracting at an annualized rate of 5.4% during the fourth quarter of 2008 and 6.4% during the first quarter of 2009. An apparent optimism about the federal government’s efforts to stimulate economic activity – The U.S. Federal Reserve responded to economic concerns by cutting its federal funds rate target from 2.00% to a range of 0.00-0.25% – also appeared to provide additional market support.

Most international stock markets also rebounded during the reporting period, albeit in a volatile market environment. Developed international markets produced solid returns for the period as European markets were able to overcome high unemployment rates and GDP declines. In addition, inflation in the “Eurozone” was historically low at the end of the reporting period. In Japan, the economy showed signs of recovery in June as manufacturers boosted production after months of cutbacks, and the yen strengthened. In addition, The Bank of Japan declared the economy was showing signs of “leveling out”, despite reductions in export activity and declines in GDP for the first two quarters of 2009. Emerging markets rose sharply during the reporting period, led by China, whose GDP continued to grow at a strong rate. In addition, the Chinese government launched a stimulus program in November that directly benefited the country’s infrastructure industries. During the second quarter of 2009, China’s economy grew by about 8% versus the same period last year. Other emerging market countries followed suit, as stock markets in Brazil, Taiwan, and South Korea also produced robust returns for the reporting period.

Real estate investment trusts (REITs) continued to struggle during the reporting period, still feeling the effects of slowdowns in consumer and business spending, which led to reduced demand for commercial real estate, higher vacancy rates, and a substantial decline in commercial property values. Frozen credit markets also limited access to capital for many REITs, thereby curtailing development and leading to concerns about their ability to refinance debt maturing in 2009 and 2010.

Within the fixed income space, changing market sentiment was also a theme during the reporting period. Treasury, investment-grade corporate, and government agency bonds rallied toward the end of 2008 as the economic downturn and credit crisis led to a significant “flight to quality”, as investors moved away from riskier assets towards the relative safety of high-quality bonds. In fact, after the federal funds target rate cut in December 2008, treasury yields were down to historic lows. However, following the federal government’s approval of a massive fiscal stimulus package designed to resuscitate the economy, and the appearance of various signs of improvement and stabilization in the overall economy and credit markets, investors moved towards riskier assets. These assets, such as lower-grade corporate bonds, were now considered attractively valued by many investors versus treasury bonds. As a result, both high-yield and investment-grade corporate bonds have soundly outperformed treasury bonds during 2009. Treasury inflation-protected securities (TIPS) also performed strongly during the period, as concerns over deflation early in the reporting period became mitigated as a possible economic recovery and future expansion appeared more likely – thereby increasing the demand for TIPS.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 1

Management’s Discussion of Fund Performance (Continued)

iSHARES^® S&P ALLOCATION SERIES

INVESTMENT OBJECTIVES

The Funds invest substantially all of their assets in other iShares Funds that, in turn, invest in equities, bonds and/or short-term instruments. Each Fund generally invests in the same underlying iShares Funds but in differing proportions, with some exceptions, depending upon the target risk profile of each Fund.

The iShares S&P Conservative Allocation Fund (the “Conservative Allocation Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the S&P Target Risk Conservative Index (the “Conservative Allocation Index”). The Conservative Allocation Index seeks to measure the performance of an asset allocation strategy targeted to a conservative risk profile. The Conservative Allocation Fund is designed for investors seeking current income, capital preservation and avoidance of excessive volatility of returns. For the period from November 4, 2008 (inception date of the Conservative Allocation Fund) through July 31, 2009, the total return for the Conservative Allocation Fund was 5.03%, while the total return for the Conservative Allocation Index was 5.06%.

The iShares S&P Moderate Allocation Fund (the “Moderate Allocation Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the S&P Target Risk Moderate Index (the “Moderate Allocation Index”). The Moderate Allocation Index seeks to measure the performance of an asset allocation strategy targeted to a moderate risk profile. The Moderate Allocation Fund is designed for investors seeking current income, some capital preservation and an opportunity for moderate to low capital appreciation. For the period from November 4, 2008 (inception date of the Moderate Allocation Fund) through July 31, 2009, the total return for the Moderate Allocation Fund was 5.48%, while the total return for the Moderate Allocation Index was 5.52%.

The iShares S&P Growth Allocation Fund (the “Growth Allocation Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the S&P Target Risk Growth Index (the “Growth Allocation Index”). The Growth Allocation Index seeks to measure the performance of an asset allocation strategy targeted to a growth focused risk profile. The Growth Allocation Fund is designed for investors seeking moderate capital appreciation and some opportunity for current income and capital preservation. For the period from November 4, 2008 (inception date of the Growth Allocation Fund) through July 31, 2009, the total return for the Growth Allocation Fund and the Growth Allocation Index was 5.83%.

The iShares S&P Aggressive Allocation Fund (the “Aggressive Allocation Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the S&P Target Risk Aggressive Index (the “Aggressive Allocation Index”). The Aggressive Allocation Index seeks to measure the performance of an asset allocation strategy targeted to an aggressive risk profile. The Aggressive Allocation Fund is designed for investors seeking long-term capital appreciation. For the period from November 4, 2008 (inception date of the Aggressive Allocation Fund) through July 31, 2009, the total return for the Aggressive Allocation Fund was 6.04%, while the total return for the Aggressive Allocation Index was 6.08%.

Each Fund invests in a representative sample of the securities included in its underlying index that collectively has an investment profile similar to that underlying index. Due to the use of representative sampling, each Fund may or may not hold all of the securities that are included in its underlying index.

2 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® S&P ALLOCATION SERIES

UNDERLYING FUND ALLOCATION WEIGHTS* (as of July 31, 2009)
Underlying Funds	Conservative Allocation Fund		Moderate Allocation Fund		Growth Allocation Fund		Aggressive Allocation Fund
Domestic Equity
iShares S&P 500 Index Fund	10.08	%	19.45	%	21.83	%	26.42	%
iShares S&P MidCap 400 Index Fund	3.55	%	3.42	%	9.79	%	22.67	%
iShares S&P SmallCap 600 Index Fund	1.18	%	2.28	%	5.44	%	8.24	%
Total Domestic Equity	14.81	%	25.15	%	37.06	%	57.33	%
International Equity
iShares MSCI EAFE Index Fund	5.81	%	12.97	%	20.16	%	21.39	%
iShares MSCI Emerging Markets Index Fund	–		1.45	%	2.78	%	5.26	%
Total International Equity	5.81	%	14.42	%	22.94	%	26.65	%
Domestic Fixed Income
iShares Barclays Aggregate Bond Fund	26.35	%	24.23	%	20.45	%	11.76	%
iShares Barclays Short Treasury Bond Fund	28.44	%	21.93	%	9.60	%	–
iShares Barclays TIPS Bond Fund	21.53	%	11.32	%	9.01	%	4.26	%
Total Domestic Fixed Income	76.32	%	57.48	%	39.06	%	16.02	%
Domestic Real Estate
iShares Cohen & Steers Realty Majors Index Fund	3.06	%	2.95	%	0.94	%	–
Total Domestic Real Estate	3.06	%	2.95	%	0.94	%	–
Fund Total	100.00	%	100.00	%	100.00	%	100.00	%

* Calculated as a percentage of total long-term investments. The asset allocation presented for each Fund is as of July 31, 2009, and will vary over time. Holdings are subject to change.

PERFORMANCE AS OF JULY 31, 2009

	Cumulative Total Return
	Inception to 7/31/09
iSHARES ALLOCATION FUND	NAV	MARKET	INDEX
S&P Conservative	5.03%	4.98%	5.06%
S&P Moderate	5.48%	5.52%	5.52%
S&P Growth	5.83%	5.91%	5.83%
S&P Aggressive	6.04%	6.19%	6.08%

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 3

Management’s Discussion of Fund Performance (Continued)

iSHARES^® S&P ALLOCATION SERIES

4 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® S&P ALLOCATION SERIES

“Cumulative Total Returns” represent the total change in value of an investment over the period(s) indicated and are calculated from an inception date of 11/4/08 for each of the Funds.

Each Fund’s per share net asset value or “NAV” is the value of one share of such Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of each Fund, and the market return is based on the market price per share of each Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of each Fund are listed for trading, as of the time that each Fund’s NAV is calculated. Since shares of each Fund did not trade in the secondary market until after each Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Funds (11/7/08), the NAV of each Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in each Fund at Market Price and NAV, respectively.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 5

Management’s Discussion of Fund Performance (Continued)

iSHARES^® S&P ALLOCATION SERIES

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

6 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance

iSHARES^® S&P TARGET DATE SERIES

INVESTMENT OBJECTIVES

The Funds invest substantially all of their assets in other iShares Funds that, in turn, invest in equities, bonds and/or short-term instruments. Each Fund generally invests in the same underlying iShares Funds but in differing proportions, with some exceptions, depending upon the target retirement horizon of each Fund.

The iShares S&P Target Date Retirement Income Index Fund (the “Retirement Income Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the S&P Target Date Retirement Income Index (the “Retirement Income Index”). The Retirement Income Index seeks to represent asset allocations which target an immediate retirement horizon. For the period from November 4, 2008 (inception date of the Retirement Income Fund) through July 31, 2009, the total return for the Retirement Income Fund was 6.31%, while the total return for the Retirement Income Index was 6.39%.

The iShares S&P Target Date 2010 Index Fund (the “2010 Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the S&P Target Date 2010 Index (the “2010 Index”). The 2010 Index seeks to represent asset allocations which target an approximate 2010 retirement horizon. For the period from November 4, 2008 (inception date of the 2010 Fund) through July 31, 2009, the total return for the 2010 Fund was 6.41%, while the total return for the 2010 Index was 6.49%.

The iShares S&P Target Date 2015 Index Fund (the “2015 Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the S&P Target Date 2015 Index (the “2015 Index”). The 2015 Index seeks to represent the market consensus for asset allocations which target an approximate 2015 retirement horizon. For the period from November 4, 2008 (inception date of the 2015 Fund) through July 31, 2009, the total return for the 2015 Fund was 6.39%, while the total return for the 2015 Index was 6.48%.

The iShares S&P Target Date 2020 Index Fund (the “2020 Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the S&P Target Date 2020 Index (the “2020 Index”). The 2020 Index seeks to represent the market consensus for asset allocations which target an approximate 2020 retirement horizon. For the period from November 4, 2008 (inception date of the 2020 Fund) through July 31, 2009, the total return for the 2020 Fund was 6.22%, while the total return for the 2020 Index was 6.31%.

The iShares S&P Target Date 2025 Index Fund (the “2025 Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the S&P Target Date 2025 Index (the “2025 Index”). The 2025 Index seeks to represent the market consensus for asset allocations which target an approximate 2025 retirement horizon. For the period from November 4, 2008 (inception date of the 2025 Fund) through July 31, 2009, the total return for the 2025 Fund was 5.97%, while the total return for the 2025 Index was 6.08%.

The iShares S&P Target Date 2030 Index Fund (the “2030 Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the S&P Target Date 2030 Index (the “2030 Index”). The 2030 Index seeks to represent the market consensus for asset allocations which target an approximate 2030 retirement horizon. For the period from November 4, 2008 (inception date of the 2030 Fund) through July 31, 2009, the total return for the 2030 Fund was 5.52%, while the total return for the 2030 Index was 5.66%.

The iShares S&P Target Date 2035 Index Fund (the “2035 Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the S&P Target Date 2035 Index (the “2035 Index”). The 2035 Index seeks to represent the market consensus for asset allocations which target an approximate 2035 retirement horizon. For the period from November 4, 2008 (inception date of the 2035 Fund) through July 31, 2009, the total return for the 2035 Fund was 5.18%, while the total return for the 2035 Index was 5.29%.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 7

Management’s Discussion of Fund Performance (Continued)

iSHARES^® S&P TARGET DATE SERIES

The iShares S&P Target Date 2040 Index Fund (the “2040 Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the S&P Target Date 2040 Index (the “2040 Index”). The 2040 Index seeks to represent the market consensus for asset allocations which target an approximate 2040 retirement horizon. For the period from November 4, 2008 (inception date of the 2040 Fund) through July 31, 2009, the total return for the 2040 Fund was 4.96%, while the total return for the 2040 Index was 5.07%.

Each Fund invests in a representative sample of the securities included in its underlying index that collectively has an investment profile similar to that underlying index. Due to the use of representative sampling, each Fund may or may not hold all of the securities that are included in its underlying index.

UNDERLYING FUND ALLOCATION WEIGHTS*

(as of July 31, 2009)

Underlying Funds	Retirement Income Fund		2010 Fund		2015 Fund		2020 Fund		2025 Fund		2030 Fund		2035 Fund		2040 Fund
Domestic Equity
iShares S&P 500 Index Fund	23.64	%	31.12	%	37.64	%	43.04	%	47.37	%	50.69	%	53.04	%	54.43	%
iShares S&P MidCap 400 Index Fund	1.85	%	2.71	%	3.47	%	4.13	%	4.71	%	5.20	%	5.61	%	5.94	%
iShares S&P SmallCap 600 Index Fund	2.50	%	3.78	%	4.88	%	5.82	%	6.60	%	7.23	%	7.72	%	8.07	%
Total Domestic Equity	27.99	%	37.61	%	45.99	%	52.99	%	58.68	%	63.12	%	66.37	%	68.44	%
International Equity
iShares MSCI EAFE Index Fund	6.23	%	8.51	%	10.70	%	12.43	%	13.85	%	14.97	%	15.81	%	16.38	%
iShares MSCI Emerging Markets Index Fund	–		1.06	%	1.53	%	2.03	%	2.45	%	2.78	%	3.04	%	3.21	%
Total International Equity	6.23	%	9.57	%	12.23	%	14.46	%	16.30	%	17.75	%	18.85	%	19.59	%
Domestic Fixed Income
iShares Barclays Aggregate Bond Fund	42.54	%	35.64	%	29.51	%	24.11	%	19.38	%	15.95	%	12.03	%	9.48	%
iShares Barclays Short Treasury Bond Fund	15.61	%	10.94	%	7.23	%	4.42	%	2.48	%	1.37	%	1.07	%	1.00	%
iShares Barclays TIPS Bond Fund	6.06	%	4.50	%	3.19	%	2.13	%	1.28	%	–		–		–
Total Domestic Fixed Income	64.21	%	51.08	%	39.93	%	30.66	%	23.14	%	17.32	%	13.10	%	10.48	%
Domestic Real Estate
iShares Cohen & Steers Realty Majors Index Fund	1.57	%	1.74	%	1.85	%	1.89	%	1.88	%	1.81	%	1.68	%	1.49	%
Total Domestic Real Estate	1.57	%	1.74	%	1.85	%	1.89	%	1.88	%	1.81	%	1.68	%	1.49	%
Fund Total	100.00	%	100.00	%	100.00	%	100.00	%	100.00	%	100.00	%	100.00	%	100.00	%

* Calculated as a percentage of total long-term investments. The asset allocation presented for each Fund is as of July 31, 2009, and will vary over time. Holdings are subject to change.

8 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® S&P TARGET DATE SERIES

PERFORMANCE AS OF JULY 31, 2009

	Cumulative Total Return
	Inception to 7/31/09
iSHARES INDEX FUND	NAV	MARKET	INDEX
S&P Target Date Retirement Income	6.31%	8.57%	6.39%
S&P Target Date 2010	6.41%	8.29%	6.49%
S&P Target Date 2015	6.39%	6.43%	6.48%
S&P Target Date 2020	6.22%	6.33%	6.31%
S&P Target Date 2025	5.97%	5.96%	6.08%
S&P Target Date 2030	5.52%	5.60%	5.66%
S&P Target Date 2035	5.18%	8.09%	5.29%
S&P Target Date 2040	4.96%	5.85%	5.07%

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 9

Management’s Discussion of Fund Performance (Continued)

iSHARES^® S&P TARGET DATE SERIES

10 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® S&P TARGET DATE SERIES

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 11

Management’s Discussion of Fund Performance (Continued)

iSHARES^® S&P TARGET DATE SERIES

12 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® S&P TARGET DATE SERIES

“Cumulative Total Returns” represent the total change in value of an investment over the period(s) indicated and are calculated from an inception date of 11/4/08 for each of the Funds.

Each Fund’s per share net asset value or “NAV” is the value of one share of such Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of each Fund, and the market return is based on the market price per share of each Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of each Fund are listed for trading, as of the time that each Fund’s NAV is calculated. Since shares of each Fund did not trade in the secondary market until after each Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Funds (11/7/08), the NAV of each Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in each Fund at Market Price and NAV, respectively.

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

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 13

Shareholder Expenses (Unaudited)

iSHARES^® TRUST

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, 2009 to July 31, 2009.

ACTUAL EXPENSES

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

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

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

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

iShares Allocation/Index Fund	Beginning Account Value (2/1/09)	Ending Account Value (7/31/09)	Annualized Expense Ratioa		Expenses Paid During Perioda,b (2/1/09 to 7/31/09)
S&P Conservative
Actual	$1,000.00	$1,066.60	0.11	%	$0.56
Hypothetical (5% return before expenses)	1,000.00	1,024.20	0.11		0.55
S&P Moderate
Actual	1,000.00	1,109.70	0.11		0.58
Hypothetical (5% return before expenses)	1,000.00	1,024.20	0.11		0.55
S&P Growth
Actual	1,000.00	1,165.30	0.11		0.59
Hypothetical (5% return before expenses)	1,000.00	1,024.20	0.11		0.55
S&P Aggressive
Actual	1,000.00	1,233.10	0.11		0.61
Hypothetical (5% return before expenses)	1,000.00	1,024.20	0.11		0.55

14 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Shareholder Expenses (Unaudited)  (Continued)

iSHARES^® TRUST

iShares Allocation/Index Fund	Beginning Account Value (2/1/09)	Ending Account Value (7/31/09)	Annualized Expense Ratioa		Expenses Paid During Perioda,b (2/1/09 to 7/31/09)
S&P Target Date Retirement Income
Actual	$1,000.00	$1,089.20	0.11	%	$0.57
Hypothetical (5% return before expenses)	1,000.00	1,024.20	0.11		0.55
S&P Target Date 2010
Actual	1,000.00	1,113.80	0.11		0.58
Hypothetical (5% return before expenses)	1,000.00	1,024.20	0.11		0.55
S&P Target Date 2015
Actual	1,000.00	1,137.20	0.11		0.58
Hypothetical (5% return before expenses)	1,000.00	1,024.20	0.11		0.55
S&P Target Date 2020
Actual	1,000.00	1,158.90	0.11		0.59
Hypothetical (5% return before expenses)	1,000.00	1,024.20	0.11		0.55
S&P Target Date 2025
Actual	1,000.00	1,178.50	0.11		0.59
Hypothetical (5% return before expenses)	1,000.00	1,024.20	0.11		0.55
S&P Target Date 2030
Actual	1,000.00	1,196.70	0.11		0.60
Hypothetical (5% return before expenses)	1,000.00	1,024.20	0.11		0.55
S&P Target Date 2035
Actual	1,000.00	1,211.60	0.11		0.60
Hypothetical (5% return before expenses)	1,000.00	1,024.20	0.11		0.55
S&P Target Date 2040
Actual	1,000.00	1,221.80	0.11		0.61
Hypothetical (5% return before expenses)	1,000.00	1,024.20	0.11		0.55

^a Annualized expense ratios and expenses paid during the period do not include fees and expenses of the Underlying Funds in which each Fund invests.

^b Expenses are calculated using each Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days).

SHAREHOLDER EXPENSES 15

Schedule of Investments

iSHARES^® S&P CONSERVATIVE ALLOCATION FUND

July 31, 2009

Security	Shares	Value
EXCHANGE-TRADED FUNDS – 99.95%
DOMESTIC FIXED INCOME – 76.28%
iShares Barclays Aggregate Bond Fund	26,845	$	2,767,719
iShares Barclays Short Treasury Bond Fund	27,110		2,987,522
iShares Barclays TIPS Bond Fund	22,313		2,261,199
			8,016,440
DOMESTIC EQUITY – 17.86%
iShares Cohen & Steers Realty Majors Index Fund	8,111		321,926
iShares S&P 500 Index Fund	10,678		1,058,510
iShares S&P MidCap 400 Index Fund	5,950		372,589
iShares S&P SmallCap 600 Index Fund	2,539		124,056
			1,877,081
INTERNATIONAL EQUITY – 5.81%
iShares MSCI EAFE Index Fund	12,105		610,213
			610,213
TOTAL EXCHANGE-TRADED FUNDS
(Cost: $10,085,994)			10,503,734

Security	Shares	Value
SHORT-TERM INVESTMENTS – 0.06%
MONEY MARKET FUNDS – 0.06%
Barclays Global Investors Funds Treasury Money Market Fund, SL Agency Shares 0.12%a	6,223	$	6,223
			6,223
TOTAL SHORT-TERM INVESTMENTS
(Cost: $6,223)			6,223
TOTAL INVESTMENTS IN SECURITIES – 100.01% (Cost: $10,092,217)			10,509,957
Other Assets, Less Liabilities – (0.01)%			(927	)
NET ASSETS – 100.00%		$	10,509,030

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

See notes to financial statements.

16 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® S&P MODERATE ALLOCATION FUND

July 31, 2009

Security	Shares	Value
EXCHANGE-TRADED FUNDS – 99.93%
DOMESTIC FIXED INCOME – 57.44%
iShares Barclays Aggregate Bond Fund	43,662	$	4,501,552
iShares Barclays Short Treasury Bond Fund	36,968		4,073,874
iShares Barclays TIPS Bond Fund	20,745		2,102,298
			10,677,724
DOMESTIC EQUITY – 28.08%
iShares Cohen & Steers Realty Majors Index Fund	13,826		548,754
iShares S&P 500 Index Fund	36,461		3,614,379
iShares S&P MidCap 400 Index Fund	10,140		634,967
iShares S&P SmallCap 600 Index Fund	8,657		422,981
			5,221,081
INTERNATIONAL EQUITY – 14.41%
iShares MSCI EAFE Index Fund	47,796		2,409,396
iShares MSCI Emerging Markets Index Fund	7,551		269,722
			2,679,118
TOTAL EXCHANGE-TRADED FUNDS
(Cost: $17,504,976)			18,577,923

Security	Shares	Value
SHORT-TERM INVESTMENTS – 0.07%
MONEY MARKET FUNDS – 0.07%
Barclays Global Investors Funds Treasury Money Market Fund, SL Agency Shares 0.12%a	13,559	$	13,559
			13,559
TOTAL SHORT-TERM INVESTMENTS
(Cost: $13,559)			13,559
TOTAL INVESTMENTS IN SECURITIES – 100.00% (Cost: $17,518,535)			18,591,482
Other Assets, Less Liabilities – (0.00)%			(613	)
NET ASSETS – 100.00%		$	18,590,869

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

See notes to financial statements.

SCHEDULES OF INVESTMENTS 17

Schedule of Investments

iSHARES^® S&P GROWTH ALLOCATION FUND

July 31, 2009

Security	Shares	Value
EXCHANGE-TRADED FUNDS – 99.93%
DOMESTIC FIXED INCOME – 39.03%
iShares Barclays Aggregate Bond Fund	53,113	$	5,475,950
iShares Barclays Short Treasury Bond Fund	23,326		2,570,525
iShares Barclays TIPS Bond Fund	23,801		2,411,993
			10,458,468
DOMESTIC EQUITY – 37.98%
iShares Cohen & Steers Realty Majors Index Fund	6,341		251,674
iShares S&P 500 Index Fund	58,983		5,846,985
iShares S&P MidCap 400 Index Fund	41,883		2,622,714
iShares S&P SmallCap 600 Index Fund	29,800		1,456,028
			10,177,401
INTERNATIONAL EQUITY – 22.92%
iShares MSCI EAFE Index Fund	107,101		5,398,962
iShares MSCI Emerging Markets Index Fund	20,818		743,619
			6,142,581
TOTAL EXCHANGE-TRADED FUNDS
(Cost: $24,453,473)			26,778,450

Security	Shares	Value
SHORT-TERM INVESTMENTS – 0.07%
MONEY MARKET FUNDS – 0.07%
Barclays Global Investors Funds Treasury Money Market Fund, SL Agency Shares 0.12%a	19,845	$	19,845
			19,845
TOTAL SHORT-TERM INVESTMENTS
(Cost: $19,845)			19,845
TOTAL INVESTMENTS IN SECURITIES – 100.00% (Cost: $24,473,318)			26,798,295
Other Assets, Less Liabilities – (0.00)%			(993	)
NET ASSETS – 100.00%		$	26,797,302

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

See notes to financial statements.

18 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® S&P AGGRESSIVE ALLOCATION FUND

July 31, 2009

Security	Shares	Value
EXCHANGE-TRADED FUNDS – 99.90%
DOMESTIC EQUITY – 57.27%
iShares S&P 500 Index Fund	50,257	$	4,981,976
iShares S&P MidCap 400 Index Fund	68,266		4,274,817
iShares S&P SmallCap 600 Index Fund	31,792		1,553,357
			10,810,150
INTERNATIONAL EQUITY – 26.62%
iShares MSCI EAFE Index Fund	80,010		4,033,304
iShares MSCI Emerging Markets Index Fund	27,762		991,659
			5,024,963
DOMESTIC FIXED INCOME – 16.01%
iShares Barclays Aggregate Bond Fund	21,517		2,218,403
iShares Barclays TIPS Bond Fund	7,935		804,133
			3,022,536
TOTAL EXCHANGE-TRADED FUNDS
(Cost: $16,886,814)			18,857,649

Security	Shares	Value
SHORT-TERM INVESTMENTS – 0.10%
MONEY MARKET FUNDS – 0.10%
Barclays Global Investors Funds Treasury Money Market Fund, SL Agency Shares 0.12%a	18,228	$	18,228
			18,228
TOTAL SHORT-TERM INVESTMENTS
(Cost: $18,228)			18,228
TOTAL INVESTMENTS IN SECURITIES – 100.00% (Cost: $16,905,042)			18,875,877
Other Assets, Less Liabilities – (0.00)%			(236	)
NET ASSETS – 100.00%		$	18,875,641

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

See notes to financial statements.

SCHEDULES OF INVESTMENTS 19

Schedule of Investments

iSHARES^® S&P TARGET DATE RETIREMENT INCOME INDEX FUND

July 31, 2009

Security	Shares	Value
EXCHANGE-TRADED FUNDS – 99.94%
DOMESTIC FIXED INCOME – 64.18%
iShares Barclays Aggregate Bond Fund	10,978	$	1,131,832
iShares Barclays Short Treasury Bond Fund	3,768		415,233
iShares Barclays TIPS Bond Fund	1,591		161,232
			1,708,297
DOMESTIC EQUITY – 29.54%
iShares Cohen & Steers Realty Majors Index Fund	1,055		41,873
iShares S&P 500 Index Fund	6,345		628,980
iShares S&P MidCap 400 Index Fund	787		49,282
iShares S&P SmallCap 600 Index Fund	1,358		66,352
			786,487
INTERNATIONAL EQUITY – 6.22%
iShares MSCI EAFE Index Fund	3,286		165,647
			165,647
TOTAL EXCHANGE-TRADED FUNDS
(Cost: $2,603,732)			2,660,431

Security	Shares	Value
SHORT-TERM INVESTMENTS – 0.07%
MONEY MARKET FUNDS – 0.07%
Barclays Global Investors Funds Treasury Money Market Fund, SL Agency Shares 0.12%a	1,740	$	1,740
			1,740
TOTAL SHORT-TERM INVESTMENTS
(Cost: $1,740)			1,740
TOTAL INVESTMENTS IN SECURITIES – 100.01% (Cost: $2,605,472)			2,662,171
Other Assets, Less Liabilities – (0.01)%			(242	)
NET ASSETS – 100.00%		$	2,661,929

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

See notes to financial statements.

20 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® S&P TARGET DATE 2010 INDEX FUND

July 31, 2009

Security	Shares	Value
EXCHANGE-TRADED FUNDS – 99.93%
DOMESTIC FIXED INCOME – 51.04%
iShares Barclays Aggregate Bond Fund	9,363	$	965,325
iShares Barclays Short Treasury Bond Fund	2,689		296,328
iShares Barclays TIPS Bond Fund	1,203		121,912
			1,383,565
DOMESTIC EQUITY – 39.32%
iShares Cohen & Steers Realty Majors Index Fund	1,189		47,191
iShares S&P 500 Index Fund	8,504		843,002
iShares S&P MidCap 400 Index Fund	1,173		73,453
iShares S&P SmallCap 600 Index Fund	2,094		102,313
			1,065,959
INTERNATIONAL EQUITY – 9.57%
iShares MSCI EAFE Index Fund	4,575		230,626
iShares MSCI Emerging Markets Index Fund	804		28,719
			259,345
TOTAL EXCHANGE-TRADED FUNDS
(Cost: $2,646,784)			2,708,869

Security	Shares	Value
SHORT-TERM INVESTMENTS – 0.08%
MONEY MARKET FUNDS – 0.08%
Barclays Global Investors Funds Treasury Money Market Fund, SL Agency Shares 0.12%a	2,114	$	2,114
			2,114
TOTAL SHORT-TERM INVESTMENTS
(Cost: $2,114)			2,114
TOTAL INVESTMENTS IN SECURITIES – 100.01% (Cost: $2,648,898)			2,710,983
Other Assets, Less Liabilities – (0.01)%			(244	)
NET ASSETS – 100.00%		$	2,710,739

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

See notes to financial statements.

SCHEDULES OF INVESTMENTS 21

Schedule of Investments

iSHARES^® S&P TARGET DATE 2015 INDEX FUND

July 31, 2009

Security	Shares	Value
EXCHANGE-TRADED FUNDS – 99.93%
DOMESTIC EQUITY – 47.80%
iShares Cohen & Steers Realty
Majors Index Fund	1,264	$	50,168
iShares S&P 500 Index Fund	10,311		1,022,129
iShares S&P MidCap 400 Index Fund	1,504		94,181
iShares S&P SmallCap 600 Index Fund	2,713		132,557
			1,299,035
DOMESTIC FIXED INCOME – 39.91%
iShares Barclays Aggregate Bond Fund	7,774		801,499
iShares Barclays Short Treasury Bond Fund	1,782		196,376
iShares Barclays TIPS Bond Fund	856		86,747
			1,084,622
INTERNATIONAL EQUITY – 12.22%
iShares MSCI EAFE Index Fund	5,763		290,513
iShares MSCI Emerging Markets
Index Fund	1,162		41,507
			332,020
TOTAL EXCHANGE-TRADED FUNDS
(Cost: $2,642,817)			2,715,677

Security	Shares	Value
SHORT-TERM INVESTMENTS – 0.08%
MONEY MARKET FUNDS – 0.08%
Barclays Global Investors Funds Treasury Money Market Fund, SL Agency Shares
0.12%a	2,122	$	2,122
			2,122
TOTAL SHORT-TERM INVESTMENTS
(Cost: $2,122)			2,122
TOTAL INVESTMENTS IN SECURITIES – 100.01%
(Cost: $2,644,939)			2,717,799
Other Assets, Less Liabilities – (0.01)%			(243	)
NET ASSETS – 100.00%		$	2,717,556

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

See notes to financial statements.

22 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® S&P TARGET DATE 2020 INDEX FUND

July 31, 2009

Security	Shares	Value
EXCHANGE-TRADED FUNDS – 99.93%
DOMESTIC FIXED INCOME – 30.64%
iShares Barclays Aggregate Bond Fund	6,356	$	655,304
iShares Barclays Short Treasury Bond Fund	1,091		120,228
iShares Barclays TIPS Bond Fund	570		57,764
			833,296
DOMESTIC EQUITY – 54.84%
iShares Cohen & Steers Realty Majors Index Fund	1,296		51,438
iShares S&P 500 Index Fund	11,799		1,169,635
iShares S&P MidCap 400 Index Fund	1,791		112,152
iShares S&P SmallCap 600 Index Fund	3,237		158,160
			1,491,385
INTERNATIONAL EQUITY – 14.45%
iShares MSCI EAFE Index Fund	6,701		337,797
iShares MSCI Emerging Markets Index Fund	1,546		55,223
			393,020
TOTAL EXCHANGE-TRADED FUNDS
(Cost: $2,650,473)			2,717,701

Security	Shares	Value
SHORT-TERM INVESTMENTS – 0.08%
MONEY MARKET FUNDS – 0.08%
Barclays Global Investors Funds Treasury Money Market Fund, SL Agency Shares 0.12%a	2,240	$	2,240
			2,240
TOTAL SHORT-TERM INVESTMENTS
(Cost: $2,240)			2,240
TOTAL INVESTMENTS IN SECURITIES – 100.01%
(Cost: $2,652,713)			2,719,941
Other Assets, Less Liabilities – (0.01)%			(242	)
NET ASSETS – 100.00%		$	2,719,699

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

See notes to financial statements.

SCHEDULES OF INVESTMENTS 23

Schedule of Investments

iSHARES^® S&P TARGET DATE 2025 INDEX FUND

July 31, 2009

Security	Shares	Value
EXCHANGE-TRADED FUNDS – 99.94%
DOMESTIC EQUITY – 60.52%
iShares Cohen & Steers Realty Majors Index Fund	1,931	$	76,641
iShares S&P 500 Index Fund	19,483		1,931,349
iShares S&P MidCap 400 Index Fund	3,066		191,993
iShares S&P SmallCap 600 Index Fund	5,509		269,170
			2,469,153
DOMESTIC FIXED INCOME – 23.13%
iShares Barclays Aggregate Bond Fund	7,665		790,262
iShares Barclays Short Treasury Bond Fund	917		101,053
iShares Barclays TIPS Bond Fund	515		52,190
			943,505
INTERNATIONAL EQUITY – 16.29%
iShares MSCI EAFE Index Fund	11,200		564,592
iShares MSCI Emerging Markets Index Fund	2,798		99,945
			664,537
TOTAL EXCHANGE-TRADED FUNDS
(Cost: $3,904,291)			4,077,195

Security	Shares	Value
SHORT-TERM INVESTMENTS – 0.07%
MONEY MARKET FUNDS – 0.07%
Barclays Global Investors Funds Treasury Money Market Fund, SL Agency Shares 0.12%a	3,030	$	3,030
			3,030
TOTAL SHORT-TERM INVESTMENTS
(Cost: $3,030)			3,030
TOTAL INVESTMENTS IN SECURITIES – 100.01%
(Cost: $3,907,321)			4,080,225
Other Assets, Less Liabilities – (0.01)%			(352	)
NET ASSETS – 100.00%		$	4,079,873

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

See notes to financial statements.

24 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® S&P TARGET DATE 2030 INDEX FUND

July 31, 2009

Security	Shares	Value
EXCHANGE-TRADED FUNDS – 99.88%
DOMESTIC EQUITY – 64.85%
iShares Cohen & Steers Realty Majors Index Fund	1,850	$	73,426
iShares S&P 500 Index Fund	20,785		2,060,417
iShares S&P MidCap 400 Index Fund	3,372		211,155
iShares S&P SmallCap 600 Index Fund	6,016		293,942
			2,638,940
INTERNATIONAL EQUITY – 17.74%
iShares MSCI EAFE Index Fund	12,073		608,600
iShares MSCI Emerging Markets Index Fund	3,168		113,161
			721,761
DOMESTIC FIXED INCOME – 17.29%
iShares Barclays Aggregate Bond Fund	6,286		648,087
iShares Barclays Short Treasury Bond Fund	505		55,651
			703,738
TOTAL EXCHANGE-TRADED FUNDS
(Cost: $3,906,434)			4,064,439

Security	Shares	Value
SHORT-TERM INVESTMENTS – 0.13%
MONEY MARKET FUNDS – 0.13%
Barclays Global Investors Funds Treasury Money Market Fund, SL Agency Shares 0.12%a	5,196	$	5,196
			5,196
TOTAL SHORT-TERM INVESTMENTS
(Cost: $5,196)			5,196
TOTAL INVESTMENTS IN SECURITIES – 100.01%
(Cost: $3,911,630)			4,069,635
Other Assets, Less Liabilities – (0.01)%			(359	)
NET ASSETS – 100.00%		$	4,069,276

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

See notes to financial statements.

SCHEDULES OF INVESTMENTS 25

Schedule of Investments

iSHARES^® S&P TARGET DATE 2035 INDEX FUND

July 31, 2009

Security	Shares	Value
EXCHANGE-TRADED FUNDS – 99.90%
DOMESTIC EQUITY – 67.98%
iShares Cohen & Steers Realty Majors Index Fund	1,143	$	45,366
iShares S&P 500 Index Fund	14,479		1,435,303
iShares S&P MidCap 400 Index Fund	2,423		151,728
iShares S&P SmallCap 600 Index Fund	4,276		208,925
			1,841,322
INTERNATIONAL EQUITY – 18.83%
iShares MSCI EAFE Index Fund	8,489		427,930
iShares MSCI Emerging Markets Index Fund	2,301		82,192
			510,122
DOMESTIC FIXED INCOME – 13.09%
iShares Barclays Aggregate Bond Fund	3,157		325,487
iShares Barclays Short Treasury Bond Fund	263		28,983
			354,470
TOTAL EXCHANGE-TRADED FUNDS
(Cost: $2,656,857)			2,705,914

Security	Shares	Value
SHORT-TERM INVESTMENTS – 0.11%
MONEY MARKET FUNDS – 0.11%
Barclays Global Investors Funds Treasury Money Market Fund, SL Agency Shares 0.12%a	3,112	$	3,112
			3,112
TOTAL SHORT-TERM INVESTMENTS
(Cost: $3,112)			3,112
TOTAL INVESTMENTS IN SECURITIES – 100.01%
(Cost: $2,659,969)			2,709,026
Other Assets, Less Liabilities – (0.01)%			(239	)
NET ASSETS – 100.00%		$	2,708,787

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

See notes to financial statements.

26 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® S&P TARGET DATE 2040 INDEX FUND

July 31, 2009

Security	Shares	Value
EXCHANGE-TRADED FUNDS – 99.90%
DOMESTIC EQUITY – 69.87%
iShares Cohen & Steers Realty Majors Index Fund	1,015	$	40,285
iShares S&P 500 Index Fund	14,836		1,470,693
iShares S&P MidCap 400 Index Fund	2,564		160,558
iShares S&P SmallCap 600 Index Fund	4,464		218,111
			1,889,647
INTERNATIONAL EQUITY – 19.57%
iShares MSCI EAFE Index Fund	8,778		442,499
iShares MSCI Emerging Markets Index Fund	2,430		86,800
			529,299
DOMESTIC FIXED INCOME – 10.46%
iShares Barclays Aggregate Bond Fund	2,484		256,100
iShares Barclays Short Treasury Bond Fund	244		26,889
			282,989
TOTAL EXCHANGE-TRADED FUNDS
(Cost: $2,651,358)			2,701,935

Security	Shares	Value
SHORT-TERM INVESTMENTS – 0.11%
MONEY MARKET FUNDS – 0.11%
Barclays Global Investors Funds Treasury Money Market Fund, SL Agency Shares
0.12%a	2,877	$	2,877
			2,877
TOTAL SHORT-TERM INVESTMENTS
(Cost: $2,877)			2,877
TOTAL INVESTMENTS IN SECURITIES – 100.01%
(Cost: $2,654,235)			2,704,812
Other Assets, Less Liabilities – (0.01)%			(238	)
NET ASSETS – 100.00%		$	2,704,574

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

See notes to financial statements.

SCHEDULES OF INVESTMENTS 27

Statements of Assets and Liabilities

iSHARES^® TRUST

July 31, 2009

	iShares S&P Allocation Fund
	Conservative			Moderate			Growth			Aggressive
ASSETS
Investments, at cost:	$	10,092,217		$	17,518,535		$	24,473,318		$	16,905,042
Investments in securities, at fair value (Note 1):	$	10,509,957		$	18,591,482		$	26,798,295		$	18,875,877
Receivables:
Capital shares sold		–			897			977			1,245
Securities lending income (Note 5)		1			17			159			35
Total Assets		10,509,958			18,592,396			26,799,431			18,877,157
LIABILITIES
Payables:
Investment advisory fees (Note 2)		928			1,527			2,129			1,516
Total Liabilities		928			1,527			2,129			1,516
NET ASSETS	$	10,509,030		$	18,590,869		$	26,797,302		$	18,875,641
Net assets consist of:
Paid-in capital	$	10,114,642		$	17,531,151		$	24,564,839		$	17,025,114
Undistributed net investment income		–			18,745			20,066			7,162
Accumulated net realized loss		(23,352	)		(31,974	)		(112,580	)		(127,470	)
Net unrealized appreciation		417,740			1,072,947			2,324,977			1,970,835
NET ASSETS	$	10,509,030		$	18,590,869		$	26,797,302		$	18,875,641
Shares outstandinga		400,000			700,000			1,000,000			700,000
Net asset value per share	$	26.27		$	26.56		$	26.80		$	26.97

^a No par value, unlimited number of shares authorized.

See notes to financial statements.

28 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities (Continued)

iSHARES^® TRUST

July 31, 2009

	iShares S&P Target Date Index Fund
	Retirement Income			2010			2015			2020
ASSETS
Investments, at cost:	$	2,605,472		$	2,648,898		$	2,644,939		$	2,652,713
Investments in securities, at fair value (Note 1):	$	2,662,171		$	2,710,983		$	2,717,799		$	2,719,941
Total Assets		2,662,171			2,710,983			2,717,799			2,719,941
LIABILITIES
Payables:
Investment advisory fees (Note 2)		242			244			243			242
Total Liabilities		242			244			243			242
NET ASSETS	$	2,661,929		$	2,710,739		$	2,717,556		$	2,719,699
Net assets consist of:
Paid-in capital	$	2,627,375		$	2,634,406		$	2,633,557		$	2,634,209
Undistributed net investment income		–			36,275			35,712			34,971
Accumulated net realized loss		(22,145	)		(22,027	)		(24,573	)		(16,709	)
Net unrealized appreciation		56,699			62,085			72,860			67,228
NET ASSETS	$	2,661,929		$	2,710,739		$	2,717,556		$	2,719,699
Shares outstandinga		100,000			100,000			100,000			100,000
Net asset value per share	$	26.62		$	27.11		$	27.18		$	27.20

^a No par value, unlimited number of shares authorized.

See notes to financial statements.

FINANCIAL STATEMENTS 29

Statements of Assets and Liabilities (Continued)

iSHARES^® TRUST

July 31, 2009

	iShares S&P Target Date Index Fund
	2025			2030			2035			2040
ASSETS
Investments, at cost:	$	3,907,321		$	3,911,630		$	2,659,969		$	2,654,235
Investments in securities, at fair value (Note 1):	$	4,080,225		$	4,069,635		$	2,709,026		$	2,704,812
Receivables:
Securities lending income (Note 5)		9			–			–			–
Total Assets		4,080,234			4,069,635			2,709,026			2,704,812
LIABILITIES
Payables:
Investment advisory fees (Note 2)		361			359			239			238
Total Liabilities		361			359			239			238
NET ASSETS	$	4,079,873		$	4,069,276		$	2,708,787		$	2,704,574
Net assets consist of:
Paid-in capital	$	3,852,624		$	3,864,481		$	2,634,825		$	2,630,906
Undistributed net investment income		55,719			46,927			32,101			30,223
Accumulated net realized loss		(1,374	)		(137	)		(7,196	)		(7,132	)
Net unrealized appreciation		172,904			158,005			49,057			50,577
NET ASSETS	$	4,079,873		$	4,069,276		$	2,708,787		$	2,704,574
Shares outstandinga		150,000			150,000			100,000			100,000
Net asset value per share	$	27.20		$	27.13		$	27.09		$	27.05

^a No par value, unlimited number of shares authorized.

See notes to financial statements.

30 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations

iSHARES^® TRUST

Period ended July 31, 2009

	iShares S&P Allocation Fund
	Conservativea			Moderatea			Growtha			Aggressivea
NET INVESTMENT INCOME
Dividends from Underlying Funds	$	114,223		$	196,293		$	344,821		$	313,457
Interest		5			8			12			10
Securities lending income		46			239			1,837			1,732
Total investment income		114,274			196,540			346,670			315,199
EXPENSES
Investment advisory fees (Note 2)		10,369			16,905			25,997			22,581
Total expenses		10,369			16,905			25,997			22,581
Less investment advisory fees waived (Note 2)		(5,807	)		(9,467	)		(14,558	)		(12,646	)
Net expenses		4,562			7,438			11,439			9,935
Net investment income		109,712			189,102			335,231			305,264
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments		(23,173	)		(33,145	)		(121,281	)		(251,553	)
In-kind redemptions		151,509			126,692			615,721			(640,376	)
Realized gain distributions from Underlying Funds		137			83			122			–
Net realized gain (loss)		128,473			93,630			494,562			(891,929	)
Net change in unrealized appreciation (depreciation)		417,740			1,072,947			2,324,977			1,970,835
Net realized and unrealized gain		546,213			1,166,577			2,819,539			1,078,906
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	655,925		$	1,355,679		$	3,154,770		$	1,384,170

^a For the period from November 4, 2008 (commencement of operations) to July 31, 2009.

See notes to financial statements.

FINANCIAL STATEMENTS 31

Statements of Operations (Continued)

iSHARES^® TRUST

Period ended July 31, 2009

	iShares S&P Target Date Index Fund
	Retirement Incomea			2010a			2015a			2020a
NET INVESTMENT INCOME
Dividends from Underlying Funds	$	55,629		$	56,254		$	56,427		$	56,277
Interest		2			2			2			2
Securities lending income		84			42			–			–
Total investment income		55,715			56,298			56,429			56,279
EXPENSES
Investment advisory fees (Note 2)		4,656			4,622			4,566			4,511
Total expenses		4,656			4,622			4,566			4,511
Less investment advisory fees waived (Note 2)		(2,608	)		(2,588	)		(2,557	)		(2,526	)
Net expenses		2,048			2,034			2,009			1,985
Net investment income		53,667			54,264			54,420			54,294
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments		(22,236	)		(22,727	)		(25,482	)		(17,941	)
In-kind redemptions		85,032			85,727			78,227			73,223
Realized gain distributions from Underlying Funds		25			19			14			10
Net realized gain		62,821			63,019			52,759			55,292
Net change in unrealized appreciation (depreciation)		56,699			62,085			72,860			67,228
Net realized and unrealized gain		119,520			125,104			125,619			122,520
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	173,187		$	179,368		$	180,039		$	176,814

^a For the period from November 4, 2008 (commencement of operations) to July 31, 2009.

See notes to financial statements.

32 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations (Continued)

iSHARES^® TRUST

Period ended July 31, 2009

	iShares S&P Target Date Index Fund
	2025a			2030a			2035a			2040a
NET INVESTMENT INCOME
Dividends from Underlying Funds	$	118,508		$	70,623		$	54,354		$	52,756
Interest		4			3			2			2
Securities lending income		757			–			130			81
Total investment income		119,269			70,626			54,486			52,839
EXPENSES
Investment advisory fees (Note 2)		8,946			5,543			4,366			4,338
Total expenses		8,946			5,543			4,366			4,338
Less investment advisory fees waived (Note 2)		(5,010	)		(3,104	)		(2,445	)		(2,429	)
Net expenses		3,936			2,439			1,921			1,909
Net investment income		115,333			68,187			52,565			50,930
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments		(4,274	)		1,681			(9,428	)		(10,240	)
In-kind redemptions		(120,779	)		204,501			60,425			55,816
Realized gain distributions from Underlying Funds		18			3			–			–
Net realized gain (loss)		(125,035	)		206,185			50,997			45,576
Net change in unrealized appreciation (depreciation)		172,904			158,005			49,057			50,577
Net realized and unrealized gain		47,869			364,190			100,054			96,153
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	163,202		$	432,377		$	152,619		$	147,083

^a For the period from November 4, 2008 (commencement of operations) to July 31, 2009.

See notes to financial statements.

FINANCIAL STATEMENTS 33

Statements of Changes in Net Assets

iSHARES^® TRUST

	iShares S&P Conservative Allocation Fund			iShares S&P Moderate Allocation Fund
	Period from November 4, 2008a to July 31, 2009			Period from November 4, 2008a to July 31, 2009
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	109,712		$	189,102
Net realized gain		128,473			93,630
Net change in unrealized appreciation (depreciation)		417,740			1,072,947
Net increase in net assets resulting from operations		655,925			1,355,679
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(110,296	)		(170,440	)
From net realized gain		(480	)		–
Total distributions to shareholders		(110,776	)		(170,440	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		13,799,712			19,945,655
Cost of shares redeemed		(3,835,831	)		(2,540,025	)
Net increase in net assets from capital share transactions		9,963,881			17,405,630
INCREASE IN NET ASSETS		10,509,030			18,590,869
NET ASSETS
Beginning of period		–			–
End of period	$	10,509,030		$	18,590,869
Undistributed net investment income included in net assets at end of period	$	–		$	18,745
SHARES ISSUED AND REDEEMED
Shares sold		550,000			800,000
Shares redeemed		(150,000	)		(100,000	)
Net increase in shares outstanding		400,000			700,000

^a Commencement of operations.

See notes to financial statements.

34 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^® TRUST

	iShares S&P Growth Allocation Fund			iShares S&P Aggressive Allocation Fund
	Period from November 4, 2008a to July 31, 2009			Period from November 4, 2008a to July 31, 2009
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	335,231		$	305,264
Net realized gain (loss)		494,562			(891,929	)
Net change in unrealized appreciation (depreciation)		2,324,977			1,970,835
Net increase in net assets resulting from operations		3,154,770			1,384,170
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(315,287	)		(298,102	)
Total distributions to shareholders		(315,287	)		(298,102	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		37,585,018			31,657,601
Cost of shares redeemed		(13,627,199	)		(13,868,028	)
Net increase in net assets from capital share transactions		23,957,819			17,789,573
INCREASE IN NET ASSETS		26,797,302			18,875,641
NET ASSETS
Beginning of period		–			–
End of period	$	26,797,302		$	18,875,641
Undistributed net investment income included in net assets at end of period	$	20,066		$	7,162
SHARES ISSUED AND REDEEMED
Shares sold		1,550,000			1,350,000
Shares redeemed		(550,000	)		(650,000	)
Net increase in shares outstanding		1,000,000			700,000

^a Commencement of operations.

See notes to financial statements.

FINANCIAL STATEMENTS 35

Statements of Changes in Net Assets (Continued)

iSHARES^® TRUST

	iShares S&P Target Date Retirement Income Index Fund			iShares S&P Target Date 2010 Index Fund
	Period from November 4, 2008a to July 31, 2009			Period from November 4, 2008a to July 31, 2009
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	53,667		$	54,264
Net realized gain		62,821			63,019
Net change in unrealized appreciation (depreciation)		56,699			62,085
Net increase in net assets resulting from operations		173,187			179,368
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(53,692	)		(18,008	)
From net realized gain		(242	)		–
Total distributions to shareholders		(53,934	)		(18,008	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		3,837,976			3,848,948
Cost of shares redeemed		(1,295,300	)		(1,299,569	)
Net increase in net assets from capital share transactions		2,542,676			2,549,379
INCREASE IN NET ASSETS		2,661,929			2,710,739
NET ASSETS
Beginning of period		–			–
End of period	$	2,661,929		$	2,710,739
Undistributed net investment income included in net assets at end of period	$	–		$	36,275
SHARES ISSUED AND REDEEMED
Shares sold		150,000			150,000
Shares redeemed		(50,000	)		(50,000	)
Net increase in shares outstanding		100,000			100,000

^a Commencement of operations.

See notes to financial statements.

36 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^® TRUST

	iShares S&P Target Date 2015 Index Fund			iShares S&P Target Date 2020 Index Fund
	Period from November 4, 2008a to July 31, 2009			Period from November 4, 2008a to July 31, 2009
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	54,420		$	54,294
Net realized gain		52,759			55,292
Net change in unrealized appreciation (depreciation)		72,860			67,228
Net increase in net assets resulting from operations		180,039			176,814
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(18,722	)		(19,333	)
Total distributions to shareholders		(18,722	)		(19,333	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		3,849,144			3,847,867
Cost of shares redeemed		(1,292,905	)		(1,285,649	)
Net increase in net assets from capital share transactions		2,556,239			2,562,218
INCREASE IN NET ASSETS		2,717,556			2,719,699
NET ASSETS
Beginning of period		–			–
End of period	$	2,717,556		$	2,719,699
Undistributed net investment income included in net assets at end of period	$	35,712		$	34,971
SHARES ISSUED AND REDEEMED
Shares sold		150,000			150,000
Shares redeemed		(50,000	)		(50,000	)
Net increase in shares outstanding		100,000			100,000

^a Commencement of operations.

See notes to financial statements.

FINANCIAL STATEMENTS 37

Statements of Changes in Net Assets (Continued)

iSHARES^® TRUST

	iShares S&P Target Date 2025 Index Fund			iShares S&P Target Date 2030 Index Fund
	Period from November 4, 2008a to July 31, 2009			Period from November 4, 2008a to July 31, 2009
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	115,333		$	68,187
Net realized gain (loss)		(125,035	)		206,185
Net change in unrealized appreciation (depreciation)		172,904			158,005
Net increase in net assets resulting from operations		163,202			432,377
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(59,632	)		(21,263	)
Total distributions to shareholders		(59,632	)		(21,263	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		8,648,515			4,928,823
Cost of shares redeemed		(4,672,212	)		(1,270,661	)
Net increase in net assets from capital share transactions		3,976,303			3,658,162
INCREASE IN NET ASSETS		4,079,873			4,069,276
NET ASSETS
Beginning of period		–			–
End of period	$	4,079,873		$	4,069,276
Undistributed net investment income included in net assets at end of period	$	55,719		$	46,927
SHARES ISSUED AND REDEEMED
Shares sold		350,000			200,000
Shares redeemed		(200,000	)		(50,000	)
Net increase in shares outstanding		150,000			150,000

^a Commencement of operations.

See notes to financial statements.

38 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^® TRUST

	iShares S&P Target Date 2035 Index Fund			iShares S&P Target Date 2040 Index Fund
	Period from November 4, 2008a to July 31, 2009			Period from November 4, 2008a to July 31, 2009
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	52,565		$	50,930
Net realized gain		50,997			45,576
Net change in unrealized appreciation (depreciation)		49,057			50,577
Net increase in net assets resulting from operations		152,619			147,083
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(20,464	)		(20,707	)
Total distributions to shareholders		(20,464	)		(20,707	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		3,841,782			3,839,189
Cost of shares redeemed		(1,265,150	)		(1,260,991	)
Net increase in net assets from capital share transactions		2,576,632			2,578,198
INCREASE IN NET ASSETS		2,708,787			2,704,574
NET ASSETS
Beginning of period		–			–
End of period	$	2,708,787		$	2,704,574
Undistributed net investment income included in net assets at end of period	$	32,101		$	30,223
SHARES ISSUED AND REDEEMED
Shares sold		150,000			150,000
Shares redeemed		(50,000	)		(50,000	)
Net increase in shares outstanding		100,000			100,000

^a Commencement of operations.

See notes to financial statements.

FINANCIAL STATEMENTS 39

Financial Highlights

iSHARES^® TRUST

(For a share outstanding throughout the period)

	iShares S&P Conservative Allocation Fund
	Period from Nov. 4, 2008a to Jul. 31, 2009
Net asset value, beginning of period	$	25.44
Income from investment operations:
Net investment incomeb		0.49
Net realized and unrealized gainc		0.77
Total from investment operations		1.26
Less distributions from:
Net investment income		(0.43	)
Total distributions		(0.43	)
Net asset value, end of period	$	26.27
Total return		5.03	%d
Ratios/Supplemental data:
Net assets, end of period (000s)	$	10,509
Ratio of expenses to average net assetse,f		0.11	%
Ratio of expenses to average net assets prior to waived feese,f		0.25	%
Ratio of net investment income to average net assetsf		2.65	%
Portfolio turnover rateg		6	%

^a Commencement of operations.

^b Based on average shares outstanding throughout the period.

^c The amount reported may not accord with the change in aggregate gains and losses in securities due to the timing of capital share transactions.

^d Not annualized.

^e The Fund indirectly bears its proportionate share of fees and expenses incurred by the Underlying Funds in which the Fund is invested. This ratio does not include these indirect fees and expenses.

^f Annualized for periods of less than one year.

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

See notes to financial statements.

40 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout the period)

	iShares S&P Moderate Allocation Fund
	Period from Nov. 4, 2008a to Jul. 31, 2009
Net asset value, beginning of period	$	25.60
Income from investment operations:
Net investment incomeb		0.52
Net realized and unrealized gainc		0.86
Total from investment operations		1.38
Less distributions from:
Net investment income		(0.42	)
Total distributions		(0.42	)
Net asset value, end of period	$	26.56
Total return		5.48	%d
Ratios/Supplemental data:
Net assets, end of period (000s)	$	18,591
Ratio of expenses to average net assetse,f		0.11	%
Ratio of expenses to average net assets prior to waived feese,f		0.25	%
Ratio of net investment income to average net assetsf		2.80	%
Portfolio turnover rateg		7	%

^a Commencement of operations.

^b Based on average shares outstanding throughout the period.

^c The amount reported may not accord with the change in aggregate gains and losses in securities due to the timing of capital share transactions.

^d Not annualized.

^e The Fund indirectly bears its proportionate share of fees and expenses incurred by the Underlying Funds in which the Fund is invested. This ratio does not include these indirect fees and expenses.

^f Annualized for periods of less than one year.

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

See notes to financial statements.

FINANCIAL HIGHLIGHTS 41

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout the period)

	iShares S&P Growth Allocation Fund
	Period from Nov. 4, 2008a to Jul. 31, 2009
Net asset value, beginning of period	$	25.79
Income from investment operations:
Net investment incomeb		0.58
Net realized and unrealized gainc		0.88
Total from investment operations		1.46
Less distributions from:
Net investment income		(0.45	)
Total distributions		(0.45	)
Net asset value, end of period	$	26.80
Total return		5.83	%d
Ratios/Supplemental data:
Net assets, end of period (000s)	$	26,797
Ratio of expenses to average net assetse,f		0.11	%
Ratio of expenses to average net assets prior to waived feese,f		0.25	%
Ratio of net investment income to average net assetsf		3.22	%
Portfolio turnover rateg		8	%

^a Commencement of operations.

^b Based on average shares outstanding throughout the period.

^c The amount reported may not accord with the change in aggregate gains and losses in securities due to the timing of capital share transactions.

^d Not annualized.

^e The Fund indirectly bears its proportionate share of fees and expenses incurred by the Underlying Funds in which the Fund is invested. This ratio does not include these indirect fees and expenses.

^f Annualized for periods of less than one year.

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

See notes to financial statements.

42 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout the period)

	iShares S&P Aggressive Allocation Fund
	Period from Nov. 4, 2008a to Jul. 31, 2009
Net asset value, beginning of period	$	25.96
Income from investment operations:
Net investment incomeb		0.59
Net realized and unrealized gainc		0.91
Total from investment operations		1.50
Less distributions from:
Net investment income		(0.49	)
Total distributions		(0.49	)
Net asset value, end of period	$	26.97
Total return		6.04	%d
Ratios/Supplemental data:
Net assets, end of period (000s)	$	18,876
Ratio of expenses to average net assetse,f		0.11	%
Ratio of expenses to average net assets prior to waived feese,f		0.25	%
Ratio of net investment income to average net assetsf		3.38	%
Portfolio turnover rateg		12	%

^a Commencement of operations.

^b Based on average shares outstanding throughout the period.

^c The amount reported may not accord with the change in aggregate gains and losses in securities due to the timing of capital share transactions.

^d Not annualized.

^e The Fund indirectly bears its proportionate share of fees and expenses incurred by the Underlying Funds in which the Fund is invested. This ratio does not include these indirect fees and expenses.

^f Annualized for periods of less than one year.

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

See notes to financial statements.

FINANCIAL HIGHLIGHTS 43

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout the period)

	iShares S&P Target Date Retirement Income Index Fund
	Period from Nov. 4, 2008a to Jul. 31, 2009
Net asset value, beginning of period	$	25.58
Income from investment operations:
Net investment incomeb		0.53
Net realized and unrealized gainc		1.05
Total from investment operations		1.58
Less distributions from:
Net investment income		(0.54	)
Total distributions		(0.54	)
Net asset value, end of period	$	26.62
Total return		6.31	%d
Ratios/Supplemental data:
Net assets, end of period (000s)	$	2,662
Ratio of expenses to average net assetse,f		0.11	%
Ratio of expenses to average net assets prior to waived feese,f		0.25	%
Ratio of net investment income to average net assetsf		2.88	%
Portfolio turnover rateg		19	%

^a Commencement of operations.

^b Based on average shares outstanding throughout the period.

^c The amount reported may not accord with the change in aggregate gains and losses in securities due to the timing of capital share transactions.

^d Not annualized.

^e The Fund indirectly bears its proportionate share of fees and expenses incurred by the Underlying Funds in which the Fund is invested. This ratio does not include these indirect fees and expenses.

^f Annualized for periods of less than one year.

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

See notes to financial statements.

44 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout the period)

	iShares S&P Target Date 2010 Index Fund
	Period from Nov. 4, 2008a to Jul. 31, 2009
Net asset value, beginning of period	$	25.66
Income from investment operations:
Net investment incomeb		0.54
Net realized and unrealized gainc		1.09
Total from investment operations		1.63
Less distributions from:
Net investment income		(0.18	)
Total distributions		(0.18	)
Net asset value, end of period	$	27.11
Total return		6.41	%d
Ratios/Supplemental data:
Net assets, end of period (000s)	$	2,711
Ratio of expenses to average net assetse,f		0.11	%
Ratio of expenses to average net assets prior to waived feese,f		0.25	%
Ratio of net investment income to average net assetsf		2.94	%
Portfolio turnover rateg		19	%

^a Commencement of operations.

^b Based on average shares outstanding throughout the period.

^c The amount reported may not accord with the change in aggregate gains and losses in securities due to the timing of capital share transactions.

^d Not annualized.

^e The Fund indirectly bears its proportionate share of fees and expenses incurred by the Underlying Funds in which the Fund is invested. This ratio does not include these indirect fees and expenses.

^f Annualized for periods of less than one year.

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

See notes to financial statements.

FINANCIAL HIGHLIGHTS 45

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout the period)

	iShares S&P Target Date 2015 Index Fund
	Period from Nov. 4, 2008a to Jul. 31, 2009
Net asset value, beginning of period	$	25.74
Income from investment operations:
Net investment incomeb		0.54
Net realized and unrealized gainc		1.09
Total from investment operations		1.63
Less distributions from:
Net investment income		(0.19	)
Total distributions		(0.19	)
Net asset value, end of period	$	27.18
Total return		6.39	%d
Ratios/Supplemental data:
Net assets, end of period (000s)	$	2,718
Ratio of expenses to average net assetse,f		0.11	%
Ratio of expenses to average net assets prior to waived feese,f		0.25	%
Ratio of net investment income to average net assetsf		2.98	%
Portfolio turnover rateg		17	%

^a Commencement of operations.

^b Based on average shares outstanding throughout the period.

^c The amount reported may not accord with the change in aggregate gains and losses in securities due to the timing of capital share transactions.

^d Not annualized.

^e The Fund indirectly bears its proportionate share of fees and expenses incurred by the Underlying Funds in which the Fund is invested. This ratio does not include these indirect fees and expenses.

^f Annualized for periods of less than one year.

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

See notes to financial statements.

46 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout the period)

	iShares S&P Target Date 2020 Index Fund
	Period from Nov. 4, 2008a to Jul. 31, 2009
Net asset value, beginning of period	$	25.81
Income from investment operations:
Net investment incomeb		0.54
Net realized and unrealized gainc		1.04
Total from investment operations		1.58
Less distributions from:
Net investment income		(0.19	)
Total distributions		(0.19	)
Net asset value, end of period	$	27.20
Total return		6.22	%d
Ratios/Supplemental data:
Net assets, end of period (000s)	$	2,720
Ratio of expenses to average net assetse,f		0.11	%
Ratio of expenses to average net assets prior to waived feese,f		0.25	%
Ratio of net investment income to average net assetsf		3.01	%
Portfolio turnover rateg		15	%

^a Commencement of operations.

^b Based on average shares outstanding throughout the period.

^c The amount reported may not accord with the change in aggregate gains and losses in securities due to the timing of capital share transactions.

^d Not annualized.

^e The Fund indirectly bears its proportionate share of fees and expenses incurred by the Underlying Funds in which the Fund is invested. This ratio does not include these indirect fees and expenses.

^f Annualized for periods of less than one year.

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

See notes to financial statements.

FINANCIAL HIGHLIGHTS 47

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout the period)

	iShares S&P Target Date 2025 Index Fund
	Period from Nov. 4, 2008a to Jul. 31, 2009
Net asset value, beginning of period	$	25.88
Income from investment operations:
Net investment incomeb		0.57
Net realized and unrealized gainc		0.95
Total from investment operations		1.52
Less distributions from:
Net investment income		(0.20	)
Total distributions		(0.20	)
Net asset value, end of period	$	27.20
Total return		5.97	%d
Ratios/Supplemental data:
Net assets, end of period (000s)	$	4,080
Ratio of expenses to average net assetse,f		0.11	%
Ratio of expenses to average net assets prior to waived feese,f		0.25	%
Ratio of net investment income to average net assetsf		3.22	%
Portfolio turnover rateg		9	%

^a Commencement of operations.

^b Based on average shares outstanding throughout the period.

^c The amount reported may not accord with the change in aggregate gains and losses in securities due to the timing of capital share transactions.

^d Not annualized.

^e The Fund indirectly bears its proportionate share of fees and expenses incurred by the Underlying Funds in which the Fund is invested. This ratio does not include these indirect fees and expenses.

^f Annualized for periods of less than one year.

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

See notes to financial statements.

48 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout the period)

	iShares S&P Target Date 2030 Index Fund
	Period from Nov. 4, 2008a to Jul. 31, 2009
Net asset value, beginning of period	$	25.94
Income from investment operations:
Net investment incomeb		0.54
Net realized and unrealized gainc		0.86
Total from investment operations		1.40
Less distributions from:
Net investment income		(0.21	)
Total distributions		(0.21	)
Net asset value, end of period	$	27.13
Total return		5.52	%d
Ratios/Supplemental data:
Net assets, end of period (000s)	$	4,069
Ratio of expenses to average net assetse,f		0.11	%
Ratio of expenses to average net assets prior to waived feese,f		0.25	%
Ratio of net investment income to average net assetsf		3.08	%
Portfolio turnover rateg		12	%

^a Commencement of operations.

^b Based on average shares outstanding throughout the period.

^c The amount reported may not accord with the change in aggregate gains and losses in securities due to the timing of capital share transactions.

^d Not annualized.

^e The Fund indirectly bears its proportionate share of fees and expenses incurred by the Underlying Funds in which the Fund is invested. This ratio does not include these indirect fees and expenses.

^f Annualized for periods of less than one year.

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

See notes to financial statements.

FINANCIAL HIGHLIGHTS 49

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout the period)

	iShares S&P Target Date 2035 Index Fund
	Period from Nov. 4, 2008a to Jul. 31, 2009
Net asset value, beginning of period	$	25.98
Income from investment operations:
Net investment incomeb		0.52
Net realized and unrealized gainc		0.79
Total from investment operations		1.31
Less distributions from:
Net investment income		(0.20	)
Total distributions		(0.20	)
Net asset value, end of period	$	27.09
Total return		5.18	%d
Ratios/Supplemental data:
Net assets, end of period (000s)	$	2,709
Ratio of expenses to average net assetse,f		0.11	%
Ratio of expenses to average net assets prior to waived feese,f		0.25	%
Ratio of net investment income to average net assetsf		3.01	%
Portfolio turnover rateg		9	%

^a Commencement of operations.

^b Based on average shares outstanding throughout the period.

^c The amount reported may not accord with the change in aggregate gains and losses in securities due to the timing of capital share transactions.

^d Not annualized.

^e The Fund indirectly bears its proportionate share of fees and expenses incurred by the Underlying Funds in which the Fund is invested. This ratio does not include these indirect fees and expenses.

^f Annualized for periods of less than one year.

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

See notes to financial statements.

50 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout the period)

	iShares S&P Target Date 2040 Index Fund
	Period from Nov. 4, 2008a to Jul. 31, 2009
Net asset value, beginning of period	$	26.00
Income from investment operations:
Net investment incomeb		0.51
Net realized and unrealized gainc		0.75
Total from investment operations		1.26
Less distributions from:
Net investment income		(0.21	)
Total distributions		(0.21	)
Net asset value, end of period	$	27.05
Total return		4.96	%d
Ratios/Supplemental data:
Net assets, end of period (000s)	$	2,705
Ratio of expenses to average net assetse,f		0.11	%
Ratio of expenses to average net assets prior to waived feese,f		0.25	%
Ratio of net investment income to average net assetsf		2.94	%
Portfolio turnover rateg		10	%

^a Commencement of operations.

^b Based on average shares outstanding throughout the period.

^c The amount reported may not accord with the change in aggregate gains and losses in securities due to the timing of capital share transactions.

^d Not annualized.

^e The Fund indirectly bears its proportionate share of fees and expenses incurred by the Underlying Funds in which the Fund is invested. This ratio does not include these indirect fees and expenses.

^f Annualized for periods of less than one year.

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

See notes to financial statements.

FINANCIAL HIGHLIGHTS 51

Notes to Financial Statements

iSHARES^® TRUST

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.

These financial statements relate only to the iShares S&P Conservative Allocation, iShares S&P Moderate Allocation, iShares S&P Growth Allocation and iShares S&P Aggressive Allocation Funds (each, a “Fund,” collectively, the “iShares S&P Allocation Funds”), and the iShares S&P Target Date Retirement Income, iShares S&P Target Date 2010, iShares S&P Target Date 2015, iShares S&P Target Date 2020, iShares S&P Target Date 2025, iShares S&P Target Date 2030, iShares S&P Target Date 2035 and iShares S&P Target Date 2040 Index Funds (each, a “Fund,” collectively, the “iShares S&P Target Date Funds”). The iShares S&P Allocation Funds and iShares S&P Target Date Funds (collectively, the “Funds”) commenced operations on November 4, 2008.

The investment objective of each of the iShares S&P Allocation Funds and iShares S&P Target Date Funds is to seek investment results that correspond generally to the price and yield performance, before fees and expenses, of an S&P Target Risk Index or S&P Target Date Index, respectively (each, an “Underlying Index”). Each Underlying Index is comprised entirely of securities of iShares Funds (each, an “Underlying Fund”, collectively, the “Underlying Funds”) that themselves seek investment results that correspond generally to the price and yield performance, before fees and expenses, of their own respective underlying indexes. The investment adviser uses a “passive” or indexing approach to try to achieve each Fund’s investment objective. Each Fund is an exchange-traded fund (“ETF”) fund of funds and seeks its investment objective by investing primarily in the affiliated Underlying Funds.

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.

1. SIGNIFICANT ACCOUNTING POLICIES

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”). 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.

SECURITY VALUATION

The securities and other assets of each Fund are valued pursuant to the pricing policy and procedures approved by the Board of Trustees of the Trust (the “Board”). The Funds are subject to the provisions of Financial Accounting Standards Board (“FASB”) Statement of Financial Accounting Standards No. 157 (“FAS 157”), “Fair Value Measurements.” This standard establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. Inputs may be based on independent market data (“observable inputs”) or they may be internally developed (“unobservable inputs”). The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under FAS 157 are as follows:

• Level 1 – Inputs that reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access at the measurement date;

• Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived principally from or corroborated by observable market data by correlation or other means;

• Level 3 – Inputs that are unobservable for the asset or liability.

52 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

The determination of what constitutes an “observable” input may require significant judgment by the Funds. As of July 31, 2009, the value of each Fund’s investments in each of its Underlying Funds was classified as a Level 1 price. The breakdown of each Fund’s investments into major categories is disclosed in its respective Schedule of Investments. The level of a value determined for an investment within the fair value hierarchy is based upon the pricing transparency of the investment and does not necessarily correspond to the Funds’ perceived risk of an investment in the Underlying Fund, nor the levels of the investments held within each Underlying Fund.

Fair value pricing could result in a difference between the prices used to calculate a Fund’s net assets and the prices used by the Fund’s Underlying Index, which in turn could result in a difference between the Fund’s performance and the performance of the Fund’s Underlying Index.

SECURITY TRANSACTIONS AND INCOME RECOGNITION

Security transactions are accounted for on trade date. Dividend income and capital gain distributions from the Underlying Funds, if any, are recognized on the ex-dividend date. Interest income is accrued daily. Realized gains and losses on investment transactions are determined using the specific identification method.

DISTRIBUTIONS TO SHAREHOLDERS

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

As of July 31, 2009, the tax year-end of the Funds, the components of net distributable earnings on a tax basis were as follows:

iShares Allocation/Index Fund	Undistributed Ordinary Income		Unrealized Appreciation		Capital and Other Losses			Net Distributable Earnings
S&P Conservative	$	–	$	394,388	$	–		$	394,388
S&P Moderate		18,745		1,040,973		–			1,059,718
S&P Growth		20,066		2,227,478		(15,081	)		2,232,463
S&P Aggressive		7,162		1,864,229		(20,864	)		1,850,527
S&P Target Date Retirement Income		–		34,554		–			34,554
S&P Target Date 2010		36,275		40,058		–			76,333
S&P Target Date 2015		35,712		48,287		–			83,999
S&P Target Date 2020		34,971		50,519		–			85,490
S&P Target Date 2025		55,719		171,530		–			227,249
S&P Target Date 2030		46,927		157,868		–			204,795
S&P Target Date 2035		32,101		41,936		(75	)		73,962
S&P Target Date 2040		30,223		43,667		(222	)		73,668

NOTES TO FINANCIAL STATEMENTS 53

Notes to Financial Statements (Continued)

iSHARES^® TRUST

The tax character of distributions paid during the period ended July 31, 2009 were as follows:

iShares Allocation/Index Fund	2009
S&P Conservation Allocation
Distributions paid from:
Ordinary income	$	110,776
Total Distributions	$	110,776
S&P Moderate Allocation
Distributions paid from:
Ordinary income	$	170,440
Total Distributions	$	170,440
S&P Growth Allocation
Distributions paid from:
Ordinary income	$	315,287
Total Distributions	$	315,287
S&P Aggressive Allocation
Distributions paid from:
Ordinary income	$	298,102
Total Distributions	$	298,102
S&P Target Date Retirement Income
Distributions paid from:
Ordinary income	$	53,934
Total Distributions	$	53,934
S&P Target Date 2010
Distributions paid from:
Ordinary income	$	18,008
Total Distributions	$	18,008
S&P Target Date 2015
Distributions paid from:
Ordinary income	$	18,722
Total Distributions	$	18,722
S&P Target Date 2020
Distributions paid from:
Ordinary income	$	19,333
Total Distributions	$	19,333
S&P Target Date 2025
Distributions paid from:
Ordinary income	$	59,632
Total Distributions	$	59,632

54 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

iShares Allocation/Index Fund	2009
S&P Target Date 2030
Distributions paid from:
Ordinary income	$	21,263
Total Distributions	$	21,263
S&P Target Date 2035
Distributions paid from:
Ordinary income	$	20,464
Total Distributions	$	20,464
S&P Target Date 2040
Distributions paid from:
Ordinary income	$	20,707
Total Distributions	$	20,707

FEDERAL INCOME TAXES

Each Fund is treated as a separate entity for federal income tax purposes. It is the policy of each Fund to qualify as a regulated investment company by complying with the provisions applicable to regulated investment companies, as defined under Subchapter M of the Internal Revenue Code of 1986, as amended, and to annually distribute substantially all of its ordinary income and any net capital gains (taking into account any capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income and excise taxes. Accordingly, no provision for federal income taxes was required for the period ended July 31, 2009.

From November 4, 2008 to July 31, 2009, certain Funds incurred net realized capital losses. As permitted by tax regulations, these Funds have elected to defer those losses and treat them as arising in the year ending July 31, 2010, as follows:

iShares Allocation/Index Fund	Deferred Net Realized Capital Losses
S&P Growth	$	15,081
S&P Aggressive		20,864
S&P Target Date 2035		75
S&P Target Date 2040		222

The Funds do not have net capital loss carryforwards as of July 31, 2009, the tax year-end of the Funds.

For the period ended July 31, 2009, 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 period ended July 31, 2009 are disclosed in the Funds’ Statements of Operations.

NOTES TO FINANCIAL STATEMENTS 55

Notes to Financial Statements (Continued)

iSHARES^® TRUST

As of July 31, 2009, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:

iShares Allocation/Index Fund	Tax Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation			Net Unrealized Appreciation
S&P Conservative	$	10,115,569	$	397,051	$	(2,663	)	$	394,388
S&P Moderate		17,550,509		1,045,035		(4,062	)		1,040,973
S&P Growth		24,570,817		2,230,446		(2,968	)		2,227,478
S&P Aggressive		17,011,648		1,864,229		–			1,864,229
S&P Target Date Retirement Income		2,627,617		40,892		(6,338	)		34,554
S&P Target Date 2010		2,670,925		46,431		(6,373	)		40,058
S&P Target Date 2015		2,669,512		54,328		(6,041	)		48,287
S&P Target Date 2020		2,669,422		56,708		(6,189	)		50,519
S&P Target Date 2025		3,908,695		177,996		(6,466	)		171,530
S&P Target Date 2030		3,911,767		161,905		(4,037	)		157,868
S&P Target Date 2035		2,667,090		55,526		(13,590	)		41,936
S&P Target Date 2040		2,661,145		58,442		(14,775	)		43,667

Management has reviewed the tax positions as of July 31, 2009 and has determined that no provision for income tax is required in the Funds’ financial statements.

2. AGREEMENTS AND OTHER TRANSACTIONS WITH AFFILIATES

Pursuant to an Investment Advisory Agreement with the Trust, Barclays Global Fund Advisers (“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 each Fund, BGFA is entitled to receive an annual investment advisory fee of 0.25% of the average daily net assets of each Fund. BGFA has contractually agreed to waive a portion of the advisory fees it is entitled to receive from each Fund, in an amount equal to 0.14%, through October 31, 2009. After giving effect to the fee waiver, BGFA will receive an annual advisory fee of 0.11% of the average daily net assets of each Fund. BGFA also receives investment advisory fees from the Underlying Funds as a result of the Funds’ investments in the Underlying Funds.

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 Funds. BarCap and BGI are affiliates of BGFA, the Funds’ investment adviser. As securities lending agent,

56 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

BGI receives, as fees, a share of the income earned on investment of the cash collateral received for the loan of securities. For the period ended July 31, 2009, BGI earned securities lending agent fees as follows:

iShares Allocation/Index Fund	Securities Lending Agent Fees
S&P Conservative	$         46
S&P Moderate	239
S&P Growth	1,837
S&P Aggressive	1,732
S&P Target Date Retirement Income	84

iShares Allocation/Index Fund	Securities Lending Agent Fees
S&P Target Date 2010	$      42
S&P Target Date 2025	757
S&P Target Date 2035	130
S&P Target Date 2040	81

Each Fund may invest in 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. These money market funds seek to achieve their investment objectives by investing in high-quality, short-term money market instruments that, at the time of investment, have remaining maturities of 397 calendar days or less from the date of acquisition. 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 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.

Certain trustees and officers of the Trust are also officers of BGI and/or BGFA.

3. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the period ended July 31, 2009 were as follows:

iShares Allocation/Index Fund	Purchases		Sales
S&P Conservative	$	420,036	$	351,889
S&P Moderate		642,070		615,801
S&P Growth		1,261,018		1,220,318
S&P Aggressive		1,468,027		1,445,381
S&P Target Date Retirement Income		503,445		501,875
S&P Target Date 2010		540,628		503,692
S&P Target Date 2015		477,558		443,621
S&P Target Date 2020		418,024		385,017
S&P Target Date 2025		475,980		418,704
S&P Target Date 2030		436,539		388,094
S&P Target Date 2035		267,559		235,564
S&P Target Date 2040		282,719		252,315

NOTES TO FINANCIAL STATEMENTS 57

Notes to Financial Statements (Continued)

iSHARES^® TRUST

In-kind transactions (see Note 4) for the period ended July 31, 2009 were as follows:

iShares Allocation/Index Fund	In-kind Purchases		In-kind Sales
S&P Conservative	$	13,721,904	$	3,832,393
S&P Moderate		19,922,717		2,537,557
S&P Growth		37,533,269		13,614,936
S&P Aggressive		31,612,845		13,856,748
S&P Target Date Retirement Income		3,834,327		1,294,961
S&P Target Date 2010		3,844,692		1,297,844
S&P Target Date 2015		3,844,342		1,288,207
S&P Target Date 2020		3,843,426		1,281,242
S&P Target Date 2025		8,639,960		4,667,892
S&P Target Date 2030		4,923,153		1,271,346
S&P Target Date 2035		3,837,485		1,263,620
S&P Target Date 2040		3,835,284		1,259,906

4. CAPITAL SHARE TRANSACTIONS

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 securities, which constitutes an optimized 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.

5. LOANS OF PORTFOLIO SECURITIES

Each Fund may lend its investment securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the market value of the loaned securities 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 include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. Any securities lending cash collateral may be reinvested in certain short-term instruments either directly on behalf of a Fund or through one or more joint accounts or money market funds, including those managed by BGFA; such reinvestments are subject to investment risk.

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.

58 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

6. BLACKROCK TRANSACTION

On June 16, 2009, Barclays PLC, the ultimate parent company of BGI and BGFA, accepted a binding offer and entered into an agreement to sell its interests in BGFA, BGI and certain affiliated companies, to BlackRock, Inc., (the “BlackRock Transaction”). The BlackRock Transaction is subject to certain regulatory approvals, as well as other conditions to closing.

Under the 1940 Act, completion of the BlackRock Transaction will cause the automatic termination of each Fund’s current investment advisory agreement with BGFA. In order for the management of each Fund to continue uninterrupted, the Board approved a new investment advisory agreement for each Fund subject to shareholder approval. A special meeting of shareholders of the Funds is scheduled to be held on November 4, 2009. Each shareholder of record as of the close of business on August 25, 2009 will receive notice of and be entitled to vote at the meeting.

7. REVIEW OF SUBSEQUENT EVENTS

In connection with the preparation of the financial statements of the Funds as of and for the period ended July 31, 2009, events and transactions through September 22, 2009, the date the financial statements are available to be issued, have been evaluated by the Funds’ management for possible adjustment and/or disclosure. No subsequent events requiring financial statement disclosure have been identified.

NOTES TO FINANCIAL STATEMENTS 59

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Trustees of

iShares Trust:

In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of the iShares S&P Conservative Allocation Fund, iShares S&P Moderate Allocation Fund, iShares S&P Growth Allocation Fund, iShares S&P Aggressive Allocation Fund, iShares S&P Target Date Retirement Income Index Fund, iShares S&P Target Date 2010 Index Fund, iShares S&P Target Date 2015 Index Fund, iShares S&P Target Date 2020 Index Fund, iShares S&P Target Date 2025 Index Fund, iShares S&P Target Date 2030 Index Fund, iShares S&P Target Date 2035 Index Fund and iShares S&P Target Date 2040 Index Fund (the “Funds”), at July 31, 2009, the results of each of their operations and the changes in each of their net assets and their financial highlights for 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, 2009 by correspondence with the custodian, transfer agent and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California

September 22, 2009

60 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Tax Information (Unaudited)

iSHARES^® TRUST

For corporate shareholders, the following percentages of the income dividends paid by the Funds during the fiscal year ended July 31, 2009 qualified for the dividends-received deduction:

iShares Allocation/Index Fund	Dividends-     Received     Deduction
S&P Conservation	9.41%
S&P Moderate	20.87
S&P Growth	24.17
S&P Aggressive	37.10
S&P Target Date Retirement Income	20.79
S&P Target Date 2010	78.89

iShares Allocation/Index Fund	Dividends-     Received     Deduction
S&P Target Date 2015	90.95%
S&P Target Date 2020	100.00
S&P Target Date 2025	76.52
S&P Target Date 2030	100.00
S&P Target Date 2035	100.00
S&P Target Date 2040	100.00

Under Section 854(b)(2) of the Internal Revenue Code (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, 2009:

iShares Allocation/Index Fund	Qualified Dividend Income
S&P Conservation	$	22,284
S&P Moderate		78,236
S&P Growth		169,759
S&P Aggressive		215,873
S&P Target Date Retirement Income		16,270
S&P Target Date 2010		18,008

iShares Allocation/Index Fund	Qualified Dividend Income
S&P Target Date 2015	$	18,722
S&P Target Date 2020		19,333
S&P Target Date 2025		59,632
S&P Target Date 2030		21,263
S&P Target Date 2035		20,464
S&P Target Date 2040		20,707

Under Section 871(k)(2)(C) of the Code, certain Funds hereby designate the following amounts as short-term capital gains distributions for the tax year ended July 31, 2009:

iShares Allocation/Index Fund	Short-Term Capital Gains Distributions
S&P Conservation	$	480
S&P Target Date Retirement Income		242

In January 2010, shareholders will receive Form 1099-DIV which will include their share of qualified dividend income distributed during the calendar year 2009. Shareholders are advised to check with their tax advisers for information on the treatment of these amounts on their income tax returns.

TAX INFORMATION 61

Board Review and Approval of Investment Advisory Contract (Unaudited)

iSHARES^® TRUST

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 16-17, 2009, 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, no one of which was controlling, and made the following conclusions:

NATURE, EXTENT AND QUALITY OF SERVICES PROVIDED BY BGFA

Based on management’s representations, the Board expected that there will be no diminution in the scope of services required of or provided by 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 any of the Funds; therefore, directly comparable 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.

FUNDS’ EXPENSES AND PERFORMANCE OF THE FUNDS

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 registered investment companies objectively selected by Lipper as comprising such Fund’s applicable peer group pursuant to Lipper’s proprietary methodology and any registered investment companies that would otherwise have been excluded from Lipper’s comparison group due to certain differentiating factors, but were nonetheless included at the request of BGFA (the “Lipper Group”). 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 mutual funds, closed-end funds, exchange traded funds, or 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. In addition, the Board reviewed statistical information prepared by Lipper regarding the performance of each Fund for the “last quarter” period ended March 31, 2009, and a comparison of each Fund’s performance to its performance benchmark index for the same period. To the extent that any of the comparison funds included in the Lipper Group track the same index

62 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory Contract

(Unaudited)(Continued)

iSHARES^® TRUST

as any particular Fund, Lipper also provided, and the Board reviewed, a comparison of such Fund’s performance to that of such relevant comparison funds. The Board noted that the Funds generally performed in line with their respective performance benchmark indexes over the relevant 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 its benchmark 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 expenses of the funds in their respective Lipper Groups. As part of this discussion, the Board noted that after giving effect to fee waivers, the net total expense ratio with respect to each Fund appropriately reflects services to be rendered to the Funds by BGFA, inclusive of services to the underlying iShares funds comprising the Funds’ investable assets. 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 from the Funds’ operations 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 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.

ECONOMIES OF SCALE

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 investment advisory fee rates of the Funds, 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 fee 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 structuring with declining breakpoints where the initial fee was higher. The Board also reviewed BGFA’s historic profitability as investment adviser to the iShares fund complex and noted that BGFA had continued to make significant investments in the iShares fund complex, that expenses had grown at a pace similar to the growth in revenue, and that BGFA had incurred operating losses during earlier years when the iShares funds, including the Funds, had not yet reached scale. The Board also considered the effect of fee waivers in place for the Funds. In light of this history, the Board determined that the current breakpoints were appropriate and warranted at this juncture for the identified Funds. Based on this review, as well as the discussions described above in connection with the Lipper Group and performance benchmark comparisons, the Board, recognizing its responsibility to consider this issue at least annually, concluded that the structure of the investment advisory fees reflects appropriate sharing of economies of scale with the Funds’ shareholders.

BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT 63

Board Review and Approval of Investment Advisory Contract

(Unaudited)(Continued)

iSHARES^® TRUST

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 directly comparable investment advisory/management fee information was not available for the Funds, as BGFA and its affiliates do not manage any Other Accounts with substantially similar investment objectives and strategies as any of 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.

OTHER BENEFITS TO BGFA AND/OR ITS AFFILIATES

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 investments by the Funds in other funds for which BGFA provides investment advisory services and/or BGI provides administration services. The Board noted that while revenue to BGI in connection with securities lending agency services to the iShares funds increased overall as against the previous year, overall revenue increased by approximately the same percentage as overall expenses. 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 or purchased from an underwriting syndicate in which a BGFA affiliate participates, are reported to the Board pursuant to Rule 17e-1 or Rule 10f-3, 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 thereunder, 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.

64 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited)

iSHARES^® TRUST

The tables that follow present information about the differences between the daily market price on secondary markets for shares of 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 primary 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.

iShares S&P Conservative Allocation Fund

Period Covered: January 1, 2009 through June 30, 2009

Premium/Discount Range	Number of Days	Percentage of Total Days
Greater than 2.0% and Less than 2.5%	1	0.81	%
Greater than 1.5% and Less than 2.0%	8	6.45
Greater than 1.0% and Less than 1.5%	30	24.19
Greater than 0.5% and Less than 1.0%	27	21.77
Between 0.5% and –0.5%	49	39.51
Less than –0.5% and Greater than –1.0%	4	3.23
Less than –1.0% and Greater than –1.5%	4	3.23
Less than –1.5% and Greater than –2.0%	1	0.81
	124	100.00	%

SUPPLEMENTAL INFORMATION 65

Supplemental Information (Unaudited) (Continued)

iSHARES^® TRUST

iShares S&P Moderate Allocation Fund

Period Covered: January 1, 2009 through June 30, 2009

Premium/Discount Range	Number of Days	Percentage of Total Days
Greater than 1.5% and Less than 2.0%	8	6.45	%
Greater than 1.0% and Less than 1.5%	19	15.32
Greater than 0.5% and Less than 1.0%	35	28.23
Between 0.5% and –0.5%	54	43.55
Less than –0.5% and Greater than –1.0%	5	4.03
Less than –1.0% and Greater than –1.5%	2	1.61
Less than –1.5% and Greater than –2.0%	1	0.81
	124	100.00	%

iShares S&P Growth Allocation Fund Period Covered: January 1, 2009 through June 30, 2009
Premium/Discount Range	Number of Days	Percentage of Total Days
Greater than 5.5%	2	1.61	%
Greater than 2.5% and Less than 3.0%	1	0.81
Greater than 2.0% and Less than 2.5%	1	0.81
Between 0.5% and –0.5%	118	95.15
Less than –1.0% and Greater than –1.5%	1	0.81
Less than –2.0%	1	0.81
	124	100.00	%

iShares S&P Aggressive Allocation Fund
Period Covered: January 1, 2009 through June 30, 2009
Premium/Discount Range	Number of Days	Percentage of Total Days
Greater than 2.5%	2	1.61	%
Greater than 1.5% and Less than 2.0%	4	3.23
Greater than 0.5% and Less than 1.0%	2	1.61
Between 0.5% and –0.5%	115	92.74
Less than –0.5%	1	0.81
	124	100.00	%

66 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^® TRUST

iShares S&P Target Date Retirement Income Index Fund

Period Covered: January 1, 2009 through June 30, 2009

Premium/Discount Range	Number of Days	Percentage of Total Days
Greater than 5.5%	2	1.61	%
Greater than 5.0% and Less than 5.5%	2	1.61
Greater than 4.5% and Less than 5.0%	9	7.26
Greater than 4.0% and Less than 4.5%	10	8.06
Greater than 3.5% and Less than 4.0%	11	8.87
Greater than 3.0% and Less than 3.5%	3	2.42
Greater than 2.5% and Less than 3.0%	4	3.23
Greater than 2.0% and Less than 2.5%	4	3.23
Greater than 1.5% and Less than 2.0%	4	3.23
Greater than 1.0% and Less than 1.5%	5	4.03
Greater than 0.5% and Less than 1.0%	11	8.87
Between 0.5% and –0.5%	51	41.12
Less than –0.5% and Greater than –1.0%	2	1.61
Less than –1.0% and Greater than –1.5%	4	3.23
Less than –1.5% and Greater than –2.0%	1	0.81
Less than –2.0%	1	0.81
	124	100.00	%

iShares S&P Target Date 2010 Index Fund

Period Covered: January 1, 2009 through June 30, 2009

Premium/Discount Range	Number of Days	Percentage of Total Days
Greater than 5.0%	2	1.61	%
Greater than 4.5% and Less than 5.0%	2	1.61
Greater than 4.0% and Less than 4.5%	1	0.81
Greater than 3.5% and Less than 4.0%	18	14.52
Greater than 3.0% and Less than 3.5%	13	10.48
Greater than 2.5% and Less than 3.0%	18	14.52
Greater than 2.0% and Less than 2.5%	8	6.45
Greater than 1.5% and Less than 2.0%	5	4.03
Greater than 1.0% and Less than 1.5%	3	2.42
Greater than 0.5% and Less than 1.0%	9	7.26
Between 0.5% and –0.5%	37	29.83
Less than –0.5% and Greater than –1.0%	1	0.81
Less than –1.0% and Greater than –1.5%	2	1.61
Less than –1.5% and Greater than –2.0%	1	0.81
Less than –3.0% and Greater than –3.5%	1	0.81
Less than –4.0% and Greater than –4.5%	2	1.61
Less than –4.5% and Greater than –5.0%	1	0.81
	124	100.00	%

SUPPLEMENTAL INFORMATION 67

Supplemental Information (Unaudited) (Continued)

iSHARES^® TRUST

iShares S&P Target Date 2015 Index Fund

Period Covered: January 1, 2009 through June 30, 2009

Premium/Discount Range	Number of Days	Percentage of Total Days
Between 0.5% and –0.5%	124	100.00	%
	124	100.00	%

iShares S&P Target Date 2020 Index Fund

Period Covered: January 1, 2009 through June 30, 2009

Premium/Discount Range	Number of Days	Percentage of Total Days
Greater than 0.5%	1	0.81	%
Between 0.5% and –0.5%	123	99.19
	124	100.00	%

iShares S&P Target Date 2025 Index Fund

Period Covered: January 1, 2009 through June 30, 2009

Premium/Discount Range	Number of Days	Percentage of Total Days
Greater than 0.5%	1	0.81	%
Between 0.5% and –0.5%	123	99.19
	124	100.00	%

iShares S&P Target Date 2030 Index Fund

Period Covered: January 1, 2009 through June 30, 2009

Premium/Discount Range	Number of Days	Percentage of Total Days
Greater than 0.5%	2	1.61	%
Between 0.5% and –0.5%	122	98.39
	124	100.00	%

68 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^® TRUST

iShares S&P Target Date 2035 Index Fund

Period Covered: January 1, 2009 through June 30, 2009

Premium/Discount Range	Number of Days	Percentage of Total Days
Greater than 5.5%	4	3.23	%
Greater than 5.0% and Less than 5.5%	1	0.81
Greater than 4.5% and Less than 5.0%	1	0.81
Greater than 4.0% and Less than 4.5%	5	4.03
Greater than 3.5% and Less than 4.0%	11	8.87
Greater than 3.0% and Less than 3.5%	12	9.68
Greater than 2.5% and Less than 3.0%	9	7.26
Greater than 2.0% and Less than 2.5%	7	5.65
Greater than 1.5% and Less than 2.0%	6	4.84
Greater than 1.0% and Less than 1.5%	7	5.65
Greater than 0.5% and Less than 1.0%	6	4.84
Between 0.5% and –0.5%	39	31.42
Less than –0.5% and Greater than –1.0%	5	4.03
Less than –1.0% and Greater than –1.5%	4	3.23
Less than –2.0% and Greater than –2.5%	1	0.81
Less than –2.5% and Greater than –3.0%	2	1.61
Less than –3.0% and Greater than –3.5%	1	0.81
Less than –4.0% and Greater than –4.5%	2	1.61
Less than –4.5% and Greater than –5.0%	1	0.81
	124	100.00	%

iShares S&P Target Date 2040 Index Fund

Period Covered: January 1, 2009 through June 30, 2009

Premium/Discount Range	Number of Days	Percentage of Total Days
Greater than 4.0% and Less than 4.5%	1	0.81	%
Greater than 3.5% and Less than 4.0%	3	2.42
Greater than 3.0% and Less than 3.5%	3	2.42
Greater than 2.5% and Less than 3.0%	7	5.65
Greater than 2.0% and Less than 2.5%	4	3.23
Greater than 1.5% and Less than 2.0%	10	8.06
Greater than 1.0% and Less than 1.5%	17	13.71
Greater than 0.5% and Less than 1.0%	8	6.45
Between 0.5% and –0.5%	71	57.25
	124	100.00	%

SUPPLEMENTAL INFORMATION 69

Trustee and Officer Information (Unaudited)

iSHARES^® TRUST

The Board of Trustees has responsibility for the overall management and operations of the Trust, including general supervision of the duties performed by BGFA and other service providers. Each Trustee serves until 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”) and Master Investment Portfolio (“MIP”) 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 179 portfolios within the fund complex. In addition, Lee T. Kranefuss serves as a Trustee for BGIF and MIP and oversees an additional 26 portfolios within the fund complex.

The address of each Trustee and Officer is c/o Barclays Global Investors, N.A., 400 Howard 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.

Interested Trustees and Officers

Name, Age	Position(s), Length of Service	Principal Occupation(s) During Past 5 Years	Other Directorships Held
*Lee T. Kranefuss, 47	Trustee and Chairman (since 2003).	Non-Executive Chairman (since 2009), iShares; Global Chief Executive Officer (2008-2009) of iShares/Intermediary Groups of BGI; Chief Executive Officer (2005-2008) of iShares Intermediary Index and Market Group of BGI; Chief Executive Officer (2003-2005) of the Intermediary Investor and Exchange Traded Products Business of BGI; Director (since 2005) of BGFA; Director, President and Chief Executive Officer (since 2005) of Barclays Global Investors International, Inc.; Director and Chairman (since 2005) of Barclays Global Investors Services.	Director (since 2003) of iShares, Inc.; Trustee (since 2001) of BGIF and MIP.

* Lee T. Kranefuss is deemed to be an “interested person” (as defined in the 1940 Act) of the Trust due to his affiliations with BGFA, the Funds’ investment adviser; BGI, the parent company of BGFA; and Barclays Global Investors Services, an affiliate of BGFA and BGI.

70 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Trustee and Officer Information (Unaudited) (Continued)

iSHARES^® TRUST

Independent Trustees

Name, Age	Position(s), Length of Service	Principal Occupation(s) During Past 5 Years	Other Directorships Held
George G.C. Parker, 70	Trustee (since 2000); Lead Independent Trustee (since 2006).	Dean Witter Distinguished Professor of Finance (since 1994), Emeritus, Stanford University: Graduate School of Business.	Director (since 2002) of iShares, Inc.; Lead Independent Director (since 2006) of iShares, Inc.; Director (since 1995) of Community First Financial Group; Director (since 1999) of Tejon Ranch Company; Director (since 2004) of Threshold Pharmaceuticals; Director (since 2007) of NETGEAR, Inc.
J. Darrell Duffie, 55	Trustee (since 2008).	Professor (since 1984) of Stanford University: Graduate School of Business.	Director (since 2008) of iShares, Inc.; Director (since 2008) of Moody’s Corp.
Cecilia H. Herbert, 60	Trustee (since 2005).	Chair (1994-2005) of Investment Committee, Archdiocese of San Francisco; Director (since 1998) and President (since 2007) of the Board of Directors, Catholic Charities CYO; Trustee (2004-2005) of Pacific Select Funds; Trustee (since 2002) and Chair (2006-2007) of the Finance and Investment Committees (since 2006) of the Thacher School.	Director (since 2005) of iShares, Inc.; Advisory Board Member (since 2009) of Forward Funds.
Charles A. Hurty, 65	Trustee (since 2005).	Retired. Partner, KPMG LLP (1968-2001).	Director (since 2005) of iShares, Inc.; Director (since 2002) of ProMark Absolute Return Strategies Fund LLC (1 portfolio); Director (since 2002) of Citigroup Alternative Investments Multi-Adviser Hedge Fund Portfolios LLC (1 portfolio); Director (since 2005) of CSFB Alternative Investments Fund (6 portfolios).
John E. Kerrigan, 54	Trustee (since 2005).	Chief Investment Officer (since 2002) of Santa Clara University.	Director (since 2005) of iShares, Inc.
*John E. Martinez, 48	Trustee (since 2003).	Director (since 2005) of EquityRock Capital Management; Director (since 2003) of Larkin Street Youth Services.	Director (since 2003) of iShares, Inc.; Chairman (since 2007) of Independent Review Committee, Canadian iShares Funds.

TRUSTEE AND OFFICER INFORMATION 71

Trustee and Officer Information (Unaudited) (Continued)

iSHARES^® TRUST

Independent Trustees (Continued)

Name, Age	Position(s), Length of Service	Principal Occupation(s) During Past 5 Years	Other Directorships Held
Robert H. Silver, 54	Trustee (since 2007).	President and Co-Founder (since 2006) of The Bravitas Group, Inc.; Member (since 2006) of Non-Investor Advisory Board of Russia Partners II, LP; Director and member (2006-2009) of the Audit and Compensation Committee of EPAM Systems, Inc.; President and Chief Operating Officer (2003-2005) and Director (1999-2005) of UBS Financial Services, Inc.; President and Chief Executive Officer (1999-2005) of UBS Services USA, LLC; Managing Director (2000-2005) of UBS America, Inc.; Director and Vice Chairman (since 2001) of the YMCA of Greater NYC; Broadway Producer (since 2006); Co- Founder and Vice President (since 2008) of Parentgiving Inc.	Director (since 2007) of iShares, Inc.

* Prior to August 13, 2009, John E. Martinez was deemed to be an “interested person” (as defined in the 1940 Act) of the Trust due to his affiliations with BGFA, the Funds’ investment adviser; BGI, the parent company of BGFA; and Barclays Global Investors Services, an affiliate of BGFA and BGI. Effective August 13, 2009, John E. Martinez is a non-interested person notwithstanding his former affiliation with BGFA and its affiliates prior to 2002.

Officers

Name, Age	Position(s), Length of Service	Principal Occupation(s) During Past 5 Years	Other Directorships Held
Michael A. Latham, 43	President (since 2007).	Head (since 2007) of Americas iShares, BGI; Chief Operating Officer (2003-2007) of the Intermediary Investor and Exchange Traded Products Business of BGI; Director and Chief Financial Officer (since 2005) of Barclays Global Investors International, Inc.	None.
Geoffrey D. Flynn, 52	Executive Vice President and Chief Operating Officer (since 2008).	Chief Operating Officer (since 2008) of U.S. iShares, BGI; Director (2007-2008) of Mutual Fund Operations of BGI; President (2003-2007) of Van Kampen Investors Services; Managing Director (2002-2007) of Morgan Stanley; President (2002-2007) of Morgan Stanley Trust, FSB.	None.

72 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Trustee and Officer Information (Unaudited) (Continued)

iSHARES^® TRUST

Officers (Continued)
Name, Age	Position(s), Length of Service	Principal Occupation(s) During Past 5 Years	Other Directorships Held
Jack Gee, 49	Treasurer and Chief Financial Officer (since 2008).	Senior Director (since 2009) of Fund Administration of Intermediary Investor Business of BGI; Director (2004-2009) of Fund Administration of Intermediary Investor Business of BGI; Treasurer and Chief Financial Officer (2004) of Parnassus Investments.	None.
Eilleen M. Clavere, 57	Secretary (since 2007).	Director (since 2006) of Legal Administration of Intermediary Investor Business of BGI; Legal Counsel and Vice President (2005-2006) of Atlas Funds, Atlas Advisers, Inc. and Atlas Securities, Inc.; Counsel (2001-2005) of Kirkpatrick & Lockhart LLP.	None.
Ira P. Shapiro, 46	Vice President and Chief Legal Officer (since 2007).	Associate General Counsel (since 2004) of BGI; First Vice President (1993-2004) of Merrill Lynch Investment Managers.	None.
Amy Schioldager, 46	Executive Vice President (since 2007).	Global Head (since 2008) of Index Equity, BGI; Global Head (since 2006-2008) of U.S. Indexing, BGI; Head (2001-2006) of Domestic Equity Portfolio Management, BGI.	None.
Patrick O’Connor, 41	Vice President (since 2007).	Head (since 2006) of iShares Portfolio Management, BGI; Senior Portfolio Manager (1999-2006) of BGI.	None.
Lee Sterne, 43	Vice President (since 2007).	Head (since 2007) of U.S. Fixed Income Index and iShares, BGI; Senior Portfolio Manager (2004-2007) of BGI; Portfolio Manager (2001-2004) of BGI.	None.
Matt Tucker, 36	Vice President (since 2007).	Director (since 2009) of Fixed Income Investment Strategy, BGI; Head (2005-2008) of U.S. Fixed Income Investment Solutions, BGI; Fixed Income Investment Strategist (2003-2005) of BGI.	None.

TRUSTEE AND OFFICER INFORMATION 73

Notes:

74 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes:

NOTES 75

The iShares^® Family of Funds

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

iShares Russell Domestic Index Funds	Trading Symbol
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 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 Morningstar Domestic 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 Dow Jones Domestic Index Funds
iShares Dow Jones U.S.	IYY
iShares KLD Socially Responsible Index Funds
iShares FTSE KLD 400 Social	DSI
iShares FTSE KLD Select Social	KLD
iShares NYSE Domestic Index Funds
iShares NYSE Composite	NYC
iShares NYSE 100	NY
iShares Domestic Specialty Index Funds
iShares S&P U.S. Preferred Stock	PFF
iShares Dow Jones Select Dividend	DVY

iShares North American Sector/Subsector Index Funds	Trading Symbol
iShares S&P North American Technology Sector	IGM
iShares S&P North American Technology-Multimedia Networking	IGN
iShares S&P North American Technology-Semiconductors	IGW
iShares S&P North American Technology-Software	IGV
iShares S&P North American Natural Resources Sector	IGE
iShares U.S. Domestic Sector Index Funds
iShares Dow Jones U.S. Basic Materials Sector	IYM
iShares Dow Jones U.S. Consumer Goods Sector	IYK
iShares Dow Jones U.S. Consumer Services Sector	IYC
iShares Dow Jones U.S. Energy Sector	IYE
iShares Dow Jones U.S. Financial Sector	IYF
iShares Dow Jones U.S. Healthcare Sector	IYH
iShares Dow Jones U.S. Industrial Sector	IYJ
iShares Dow Jones U.S. Technology Sector	IYW
iShares Dow Jones U.S. Telecommunications Sector	IYZ
iShares Dow Jones U.S. Utilities Sector	IDU
iShares Domestic Subsector Index Funds
iShares Dow Jones Transportation Average	IYT
iShares Dow Jones U.S. Aerospace & Defense	ITA
iShares Dow Jones U.S. Broker-Dealers	IAI
iShares Dow Jones U.S. Financial Services	IYG
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 Nasdaq Biotechnology	IBB
iShares Domestic Real Estate Index Funds
iShares Cohen & Steers Realty Majors	ICF
iShares Dow Jones U.S. Real Estate	IYR
iShares FTSE NAREIT Real Estate 50	FTY
iShares FTSE NAREIT Industrial/Office Capped	FIO
iShares FTSE NAREIT Mortgage Plus Capped	REM
iShares FTSE NAREIT Residential Plus Capped	REZ
iShares FTSE NAREIT Retail Capped	RTL
iShares Target Risk Index Funds
iShares S&P Conservative Allocation	AOK
iShares S&P Moderate Allocation	AOM
iShares S&P Growth Allocation	AOR
iShares S&P Aggressive Allocation	AOA

76 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

The iShares^® Family of Funds (Continued)

iShares International Country Index Funds	Trading Symbol
iShares FTSE China (HK Listed)	FCHI
iShares FTSE/Xinhua China 25	FXI
iShares MSCI Australia	EWA
iShares MSCI Austria Investable Market	EWO
iShares MSCI Belgium Investable Market	EWK
iShares MSCI Brazil	EWZ
iShares MSCI Canada	EWC
iShares MSCI Chile Investable Market	ECH
iShares MSCI France	EWQ
iShares MSCI Germany	EWG
iShares MSCI Hong Kong	EWH
iShares MSCI Israel Capped Investable Market	EIS
iShares MSCI Italy	EWI
iShares MSCI Japan	EWJ
iShares MSCI Japan Small Cap	SCJ
iShares S&P/TOPIX 150	ITF
iShares MSCI Malaysia	EWM
iShares MSCI Mexico Investable Market	EWW
iShares MSCI Netherlands Investable Market	EWN
iShares MSCI All Peru Capped	EPU
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 Thailand Investable Market	THD
iShares MSCI Turkey Investable Market	TUR
iShares MSCI United Kingdom	EWU
iShares International Index Funds
iShares MSCI ACWI ex US	ACWX
iShares MSCI EAFE	EFA
iShares MSCI EAFE Growth	EFG
iShares MSCI EAFE Value	EFV
iShares MSCI EAFE Small Cap	SCZ
iShares FTSE Developed Small Cap ex-North America	IFSM
iShares MSCI Emerging Markets	EEM
iShares S&P Emerging Markets Infrastructure	EMIF
iShares MSCI BRIC	BKF
iShares MSCI EMU	EZU
iShares MSCI All Country Asia ex Japan	AAXJ
iShares MSCI Pacific ex-Japan	EPP
iShares S&P Asia 50	AIA
iShares S&P Europe 350	IEV
iShares S&P Latin America 40	ILF
iShares International/Global Real Estate Index Funds
iShares S&P Developed ex-U.S. Property	WPS
iShares FTSE EPRA/NAREIT Developed Real Estate ex-U.S.	IFGL
iShares FTSE EPRA/NAREIT Developed Asia	IFAS
iShares FTSE EPRA/NAREIT Developed Europe	IFEU
iShares FTSE EPRA/NAREIT North America	IFNA
iShares International Specialty Index Funds
iShares Dow Jones International Select Dividend	IDV

iShares Target Date Index Funds	Trading Symbol
iShares S&P Target Date Retirement Income	TGR
iShares S&P Target Date 2010	TZD
iShares S&P Target Date 2015	TZE
iShares S&P Target Date 2020	TZG
iShares S&P Target Date 2025	TZI
iShares S&P Target Date 2030	TZL
iShares S&P Target Date 2035	TZO
iShares S&P Target Date 2040	TZV
iShares Global Index Funds
iShares MSCI ACWI	ACWI
iShares S&P Global 100	IOO
iShares MSCI Kokusai	TOK
iShares Global Sector Index Funds
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 Global Theme Based Index Funds
iShares S&P Global Clean Energy	ICLN
iShares S&P Global Infrastructure	IGF
iShares S&P Global Nuclear Energy	NUCL
iShares S&P Global Timber & Forestry	WOOD
iShares U.S. Multisector Bond Funds
iShares Barclays Aggregate	AGG
iShares Barclays Government/Credit	GBF
iShares Barclays Intermediate Government/Credit	GVI
iShares U.S. Government Bond Funds
iShares Barclays Short Treasury	SHV
iShares Barclays 1-3 Year Treasury	SHY
iShares Barclays 3-7 Year Treasury	IEI
iShares Barclays 7-10 Year Treasury	IEF
iShares Barclays 10-20 Year Treasury	TLH
iShares Barclays 20+ Year Treasury	TLT
iShares Barclays TIPS	TIP
iShares Barclays Agency	AGZ
iShares U.S. Credit Bond Funds
iShares Barclays Credit	CFT
iShares Barclays 1-3 Year Credit	CSJ
iShares Barclays Intermediate Credit	CIU
iShares iBoxx $ Investment Grade Corporate	LQD
iShares iBoxx $ High Yield Corporate	HYG
iShares U.S. Securitized Bond Funds
iShares Barclays MBS	MBB

iSHARES FAMILY OF FUNDS 77

The iShares^® Family of Funds (Continued)

iShares AMT-Free Municipal Bond Funds	Trading Symbol
iShares S&P National AMT-Free Municipal	MUB
iShares S&P Short Term National AMT-Free Municipal	SUB
iShares S&P California AMT-Free Municipal	CMF
iShares S&P New York AMT-Free Municipal	NYF

iShares International Bond Funds	Trading Symbol
iShares JPMorgan USD Emerging Markets	EMB
iShares S&P/Citigroup International Treasury	IGOV
iShares S&P/Citigroup 1-3 Year International Treasury	ISHG

iShares^® is a registered trademark of Barclays Global Investors, N.A. (“BGI”). The iShares Funds are not sponsored, endorsed, issued, sold or promoted by Cohen & Steers Capital Management, Inc., Dow Jones & Company, Inc., European Public Real Estate Association (“EPRA^®”), FTSE International Limited (“FTSE”), FTSE/Xinhua Index Limited (“FXI”), iBoxx^®, J.P. Morgan Securities Inc., MSCI Inc., Morningstar Inc., The NASDAQ OMX Group, Inc., National Association of Real Estate Investment Trusts (“NAREIT”), New York Stock Exchange, Inc., Frank Russell Company or Standard & Poor’s, nor are they sponsored or endorsed by Barclays Capital. 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 except Barclays Capital, which is an affiliate of BGI. 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/Residential/Retail/Mortgage REITs or Industrial/Office Index; all rights vest in NAREIT. Neither FTSE nor NAREIT makes any warranty regarding the FTSE EPRA/NAREIT Global Real Estate ex-US/North America/Europe/Asia Index; all rights vest in FTSE, NAREIT, and EPRA. All rights in the FTSE Developed Small Cap ex-North America Index vest in FTSE. “FTSE” is a trade- and servicemark of London Stock Exchange and The Financial Times Limited; “Xinhua” is a trade- and servicemark of Xinhua Financial Network Limited. “NAREIT^®” is a trademark of NAREIT; “EPRA^®” is a trademark of EPRA.

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

This advertising section does not constitute part of the 2009 Annual Report.

iS-1241-0909

78 2009 iSHARES ANNUAL REPORT TO SHAREHOLDERS

For more information:

www.ishares.com

1-800-ishares (1-800-474-2737)

The ishares funds are distributed by SEI investment distribution co. (SEI). Barclays global fund advisors (BGFA) serves as an adviser to its ishares Funds. BGFA is a subsidiary of

Barclays global investors, n.a. (BGI), neither of which is affiliated with SEI.

The shares funds are not sponsored, endorsed, issued, sold or promoted by standard & Poor’s, nor does this company 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 company listed above.

©2009 Barclays global investors. All rights reserved. iShares is a registered trademark of Barclay’s global investors N.A. All other trademarks servicemarks or registered trademarks are the property of their respective owners.

Investing involves risk, including possible loss of principal

A description of the policies that the funds use to determine how to vote proxies relating to portfolio securities and information about how the funds voted proxies relating to portfolio securities during the most recent twelve-month period ended june 30 is available without charge upon request, by calling toll free 1 800 474 2737: on the fund’s website at www.ishares.com; and on the U.S securities and exchange commission (SEC) website at www.sec.gov

The funds file their complete schedules of portfolio holdings wit the sec for the first and third quarter of each fiscal year on form N-Q the funds’ forms N-Q are available on the SEC’s website or may be reviewed and copied at the Sec’s public reference Room in Washington, D.C information on the operation of the public reference room may be obtained by calling 1-800-SEC-0330 the funds also disclose their complete schedules of portfolio holdings on a daily and monthly basis on the fund’s website.

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

Ishares® let’s build a better investment world ® Barclays Global Investors BCLAR0-74-0709

Item 2. Code of Ethics.

iShares Trust (the “Registrant”) has 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, 2009, there were no amendments to any provision of this code of ethics, nor were there any waivers granted from any provision of this code of ethics. A copy of this code of ethics is filed with this Form N-CSR under Item 12(a)(1).

Item 3. Audit Committee Financial Expert.

The Registrant’s Board of Trustees has determined that the Registrant has more than one audit committee financial expert, as that term is defined under Item 3(b) and 3(c), serving on its audit committee. The audit committee financial experts serving on the Registrant’s audit committee are 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).

Item 4. Principal Accountant Fees and Services.

The principal accountant fees disclosed in items 4(a), 4(b), 4(c), 4(d) and 4(g) are for the thirty series of the Registrant for which the fiscal year-end is July 31, 2009 (the “Funds”), and whose annual financial statements are reported in Item 1.

(a) Audit Fees – The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the Funds’ annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years, were $241,933 for the fiscal year ended July 31, 2008 and $418,958 for the fiscal year ended July 31, 2009.

(b) Audit-Related Fees – There were no fees billed for the fiscal years ended July 31, 2008 and July 31, 2009 for assurance and related services by the principal accountant that were reasonably related to the performance of the audit of the Funds’ financial statements and are not reported under (a) of this Item.

(c) Tax Fees – The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for the review of the Funds’ tax returns and excise tax calculations, were $34,615 for the fiscal year ended July 31, 2008 and $96,900 for the fiscal year ended July 31, 2009.

(d) All Other Fees – There were no other fees billed for the fiscal years ended July 31, 2008 and July 31, 2009 for products and services provided by the principal accountant, other than the services reported in (a) through (c) of this Item.

(e) (1) The Registrant’s audit committee charter, as amended, provides that the audit committee is responsible for the approval, prior to appointment, of the engagement of the principal accountant to annually audit and provide their opinion on the Registrant’s financial statements. The audit committee must also approve, prior to appointment, the engagement of the principal accountant to provide non-audit services to the Registrant or to any entity controlling, controlled by or under common control with the Registrant’s investment adviser (“Adviser Affiliate”) that provides ongoing services to the Registrant, if the engagement relates directly to the operations and financial reporting of the Registrant.

(2) There were no services described in (b) through (d) above (including services required by the audit committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X) that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

(f) None of the hours expended on the principal accountant’s engagement to audit the Funds’ financial statements for the fiscal year ended July 31, 2009 were attributable to work performed by persons other than the principal accountant’s full-time, permanent employees.

(g) The aggregate non-audit fees billed by the Registrant’s principal accountant for services rendered to the Funds, and rendered to the Registrant’s investment adviser, and any Adviser Affiliate that provides ongoing services to the Registrant for the last two fiscal years, were $2,815,649 for the fiscal year ended July 31, 2008 and $3,638,136 for the fiscal year ended July 31, 2009.

(h) The Registrant’s audit committee has considered whether the provision of non-audit services rendered to the Registrant’s investment adviser and any Adviser Affiliate that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, if any, are compatible with maintaining the principal accountant’s independence, and has determined that the provision of these services do not compromise the principal accountant’s independence.

Item 5. Audit Committee of Listed Registrants.

The Registrant is a listed issuer as defined in Rule 10A-3 under the Exchange Act and has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Exchange Act. The Registrant’s audit committee members are George G.C. Parker, Cecilia H. Herbert, Charles A. Hurty, John E. Kerrigan, Robert H. Silver and J. Darrell Duffie.

Item 6. Schedule of Investments.

(a) Schedules of investments are included as part of the reports to shareholders filed under Item 1 of this Form.

(b) Not applicable.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable to the Registrant.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable to the Registrant.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable to the Registrant.

Item 10. Submission of Matters to a Vote of Security Holders.

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

Item 11. Controls and Procedures.

(a) The President (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.

Item 12. Exhibits.

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

(a) (2) Section 302 Certifications are attached.

(a) (3) Not applicable to the Registrant.

(b) Section 906 Certifications are attached.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

iShares Trust
By:	/s/ Michael A. Latham
	Michael A. Latham, President (Principal Executive Officer)
	Date: September 25, 2009

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

By:	/s/ Michael A. Latham
	Michael A. Latham, President (Principal Executive Officer)
	Date: September 25, 2009

By:	/s/ Jack Gee
	Jack Gee, Treasurer and Chief Financial Officer (Principal Financial Officer)
	Date: September 25, 2009

EX-99.(A)(1)

N-CSR Exhibit for Item 12(a)(1): CODE OF ETHICS

iShares Trust and iShares, Inc.

CODE OF ETHICS FOR SENIOR OFFICERS

INTRODUCTION

Section 406 of the Sarbanes-Oxley Act of 2002 directed the Securities and Exchange Commission (the “SEC”) to adopt rules requiring companies to disclose whether or not they have adopted a code of ethics for senior financial officers, and if not, why not. The SEC has adopted rules requiring registered investment companies to make such disclosures. These rules extend coverage to chief executive officers as well as senior financial officers, and require disclosure of waivers or substantive changes in any code. This Code of Ethics (this “Code”) addresses these new requirements, and is different in nature and scope from the code of ethics that was previously adopted as required under Section 17(j) of the Investment Company Act of 1940 (the “1940 Act”) and Rule 17j-1 thereunder, which focuses on personal trading activities.

POLICY STATEMENT

It is the policy of iShares Trust and iShares, Inc. (collectively the “Funds” or each individually a “Fund”) to conduct its affairs in accordance with all applicable laws and governmental rules and regulations. This Code has been adopted by the Funds’ Board of Trustees and Board of Directors (together, the “Board”) and applies to the persons appointed by the Board as Chief Executive Officer, President, Chief Financial Officer, Treasurer and/or Chief Accounting Officer, and any persons performing similar functions, all as identified in Exhibit A, as modified from time to time (“Covered Officers”). Each Covered Officer is personally responsible for adhering to the standards and restrictions imposed by applicable laws, rules and regulations, including those relating to affiliated transactions, accounting and auditing matters. This Code is designed to promote:

• honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships;

• full, fair, accurate, timely and understandable disclosure in the reports and documents the Fund files with, or submits to, the SEC and in other public communications made by the Fund;

• compliance with applicable governmental laws, rules and regulations;

• prompt internal reporting to the appropriate person of violations of this Code; and

• accountability for adherence to this Code.

This Code covers a wide range of business practices and procedures. It does not cover every issue that may arise, but it sets out basic principles to guide Covered Officers. In this regard, each Covered Officer must:

• act with integrity, including being honest and candid while still maintaining the confidentiality of information where required by law or the Fund’s policies;

• observe both the form and spirit of laws and governmental rules and regulations, and accounting standards;

• adhere to high standards of business ethics; and

• place the interests of the Fund and its shareholders before the Covered Officer’s own personal interests.

All activities of Covered Officers should be guided by and adhere to these fiduciary standards. Covered Officers should not hesitate to use available resources whenever it is desirable to seek clarification. Covered

Officers are encouraged to consult with the Fund’s chief legal officer or, if none, legal counsel to the Fund’s investment adviser (“Adviser”) (“Legal Counsel”), or other appropriate resources, when in doubt about the best course of action in a particular situation.

CONFLICTS OF INTEREST

Covered Officers should handle ethically actual and apparent conflicts of interest. A “conflict of interest” occurs when an individual’s personal interests actually or potentially interfere with the interests of the Fund or its shareholders. A conflict of interest can arise when a Covered Officer takes actions or has interests that may make it difficult to perform his duties as a Fund officer objectively and effectively. Service to the Fund should never be subordinated to either a direct or indirect personal gain or advantage.

Certain conflicts of interests arise out of the relationships between Covered Officers and the Fund that already are subject to conflict of interest provisions in the 1940 Act and the Investment Advisers Act. For example, Covered Officers may not individually engage in certain transactions (such as the purchase or sale of securities or other property) with the Fund because of their status as “affiliated persons” of the Fund. The Funds’ and the Adviser’s compliance programs and procedures are designed to prevent, or identify and correct, violations of these provisions. This Code does not, and is not intended to, repeat or replace these programs and procedures, and such conflicts fall outside of the parameters of this Code. Actual or apparent conflicts may arise from, or as a result of, the contractual relationship between the Fund and the Adviser, administrator or other service provider of which the Covered Officers are also officers or employees (the “Employer”). It is recognized by the Board that the Covered Officers will, in the normal course of their duties, be involved in establishing policies and implementing decisions that will have different effects on the Employer and the Fund. The Board recognizes that the participation of the Covered Officers in such activities is inherent in the contractual relationship between the Fund and the Employer, and is consistent with the Board’s understanding of the performance by the Covered Officers of their duties as officers of the Fund. In addition, it is recognized by the Board that the Covered Officers may also be officers or employees of other investment companies advised or serviced by the Employer and the codes of those investment companies will apply to the Covered Officers acting in those distinct capacities. Nonetheless, each Covered Officer recognizes that, as an Officer of the Fund, he or she has a duty to act in the best interests of the Fund and its shareholders.

If a Covered Officer believes that his or her responsibilities as an officer or employee of the Employer are likely to materially compromise his or her objectivity or ability to perform the duties of his role as an officer of the Fund, he or she should consult with Legal Counsel, the Fund’s outside counsel, or counsel to the Directors who are not “interested persons” of the Fund as defined in the 1940 Act (“Independent Directors”), as appropriate. Under appropriate circumstances, a Covered Officer should also consider whether to present the matter to the Board or an appropriate committee thereof.

In addition, each Covered Officer must:

• avoid conflicts of interest wherever possible;

• not use his or her personal influence or personal relationships to influence investment decisions or financial reporting by the Fund whereby the Covered Officer would benefit personally to the detriment of the Fund;

• not engage in personal, business or professional relationships or dealings which would impair his or her independence of judgment or adversely affect the performance of his or her duties in the best interests of the Fund and its shareholders; and

• not cause the Fund to take action, or fail to take action, for the personal benefit of the Covered Officer rather than the benefit the Fund.

ACCURACY OF REPORTS, RECORDS AND ACCOUNTS

All Covered Officers are responsible for the accuracy of the records and reports that they are responsible for maintaining. Each Covered Officer shall seek to obtain additional resources if he believes that existing resources

are inadequate to enable the Fund to provide full, fair and accurate financial information and other disclosure to regulators and Fund shareholders. Accurate information is essential to the Fund’s ability to meet legal and regulatory obligations. The books and records of the Fund shall meet the highest standards and accurately reflect the true nature of the transactions they record. The Covered Officers must not create false or misleading documents or accounting, financial or electronic records for any purpose, and must not direct any other person to do so. If a Covered Officer becomes aware that information filed with the SEC or made available to the public contains any false or misleading information or omits to disclose necessary information, he shall promptly report it to Legal Counsel for a determination as to what, if any, corrective action is necessary or appropriate.

No undisclosed or unrecorded account or fund shall be established for any purpose. No false or misleading entries shall be made in the Fund’s books or records for any reason. No disbursement of Fund assets shall be made without adequate supporting documentation or for any purpose other than as described in the Fund’s documents or contracts.

FUNDS DISCLOSURE CONTROLS AND PROCEDURES

Each Covered Officer is required to be familiar, and comply, with the Fund’s disclosure controls and procedures. In addition, each Covered Officer having direct or supervisory authority regarding SEC filings or the Fund’s other public communications should, to the extent appropriate within his area of responsibility, consult with other Fund officers and take other appropriate steps regarding these disclosures with the goal of making full, fair, accurate, timely and understandable disclosure.

Each Covered Officer must:

• familiarize him- or herself with the disclosure requirements applicable to the Fund as well as the business and financial operations of the Fund;

• ensure that reasonable steps are taken within his or her areas of responsibility to promote full, fair, accurate, timely and understandable disclosure in all regulatory filings, as well as when communicating with the Fund’s shareholders or the general public, in accordance with applicable law;

• consistent with his or her responsibilities, exercise appropriate supervision over and assist relevant Fund service providers in developing financial information and other disclosure that complies with relevant law and presents information in a clear, comprehensible and complete manner; and

• not knowingly misrepresent, conceal or omit required disclosures of, or cause others to do the same, facts about the Fund, whether to persons within or outside the Fund, including to outside counsel, independent auditors and governmental regulators.

CONFIDENTIAL INFORMATION

Covered Officers who have access to confidential information are not permitted to use or share that information for their personal benefit or for any other purpose except the conduct of the Fund’s business. Covered Officers should maintain the confidentiality of information entrusted to them by the Fund or its shareholders, except when disclosure is authorized or legally mandated. Confidential information includes all non-public information, including information that might be of use to competitors, or harmful to the Fund or its shareholders if disclosed.

All reports and records prepared or maintained pursuant to this Code will be considered confidential and shall be maintained and protected accordingly by the Fund. Except as otherwise required by law or this Code, such matters shall not be disclosed to anyone other than the Board and its counsel.

COMPLIANCE, REPORTING AND RECORDKEEPING

Compliance

Any Covered Officer who violates the provisions of this Code will be subject to disciplinary action and appropriate sanctions, up to and including termination. Sanctions shall be imposed by the Audit Committee, subject to review by the full Board, in their sole discretion. Depending on the nature and severity of the violation, the Fund may refer such violation to appropriate authorities for civil action or criminal prosecution.

All reports and records prepared or maintained pursuant to this Code shall be considered confidential and shall be maintained and protected accordingly. Except as otherwise required by the law or this Code, such reports and records shall not be disclosed to anyone other than the Fund’s Adviser, the Directors, the Fund’s outside counsel or counsel to the Independent Directors.

Reporting

Each Covered Officer shall:

• upon receipt of the Code or upon becoming a Covered Officer, sign and submit an Initial Acknowledgement (form attached) confirming that he has received, read and understands the Code;

• annually, sign and submit an Annual Acknowledgement (form attached) confirming that he has complied with the requirements of the Code;

• not retaliate against any Covered Officer or other person for making reports of violations in good faith; and

• notify Legal Counsel, the Fund’s outside counsel or counsel to the Independent Directors, as appropriate, of any actual or potential violation of this Code. Failure to do so is itself a violation of this Code. The Fund will not retaliate against any Covered Officer for making reports of violations in good faith, but will not be precluded from taking appropriate disciplinary action for the violations themselves.

Except as described otherwise below, Legal Counsel is authorized to apply this Code to situations presented to it and has the authority to interpret this Code in any particular situation. Legal Counsel shall take all action it considers appropriate to investigate any actual or potential violations reported to it, and Legal Counsel is authorized and encouraged to consult, as appropriate, with the chair of the Audit Committee, the Fund’s outside counsel or counsel to the Independent Directors. The Fund’s Audit Committee is responsible for granting waivers from the terms and provisions of this Code, as it deems appropriate.

Recordkeeping

The Fund will maintain and preserve for a period of not less than six (6) years from the date such action is taken, the first two (2) years in an easily accessible place, a copy of the information or materials supplied to the Board: (i) that provided the basis for any amendment or waiver to this Code, and (ii) relating to any violation of the Code and sanctions imposed for such violation, together with a written record of the approval or action taken by the Audit Committee and/or Board.

EXHIBIT A

“Covered Officers” covered by this Code of Ethics for Senior Officers:

1. Michael A. Latham, President (Principal Executive Officer)

2. Jack Gee, Treasurer and Chief Financial Officer (Principal Financial Officer)

Current as of: September 25, 2009

Form of

INITIAL ACKNOWLEDGEMENT

I acknowledge that I have received and read a copy of the Code of Ethics for Senior Officers (the “Code”) and that I understand it. I further acknowledge that I am responsible for understanding and complying with the policies set forth in the Code during my tenure as a Covered Officer, as defined in the Code.

I also acknowledge my responsibility to report any violation of the Code to Legal Counsel, as defined in the Code.

I further acknowledge that the policies contained in the Code are not intended to create any contractual rights or obligations, express or implied. I also understand that, consistent with applicable law, the Fund has the right to amend, interpret, modify or withdraw any of the provisions of the Code at any time in its sole discretion, with or without notice.

Covered Officer Name and Title:
	(please print)
Signature	Date

Form of

ANNUAL ACKNOWLEDGEMENT

I acknowledge that I have received and read a copy of the Code of Ethics for Senior Officers (the “Code”) and that I understand it. I further acknowledge that I am responsible for understanding and complying with the policies set forth in the Code during my tenure as a Covered Officer, as defined in the Code.

I also acknowledge that I have fully complied with the terms and provisions of the Code during the period of time since the most recent Initial or Annual Acknowledgement provided by me.

I further acknowledge that the policies contained in the Code are not intended to create any contractual rights or obligations, express or implied. I also understand that, consistent with applicable law, the Fund has the right to amend, interpret, modify or withdraw any of the provisions of the Code at any time in its sole discretion, with or without notice.

Covered Officer Name and Title:
	(please print)
Signature	Date

EX-99.(A)(2)

N-CSR Exhibit for Item 12(a)(2): SECTION 302 CERTIFICATIONS EX-99.CERT

I, Michael A. Latham, certify that:

1. I have reviewed this report on Form N-CSR of iShares Trust for the following thirty series of iShares Trust: iShares S&P North American Technology Sector Index Fund, iShares S&P North American Technology-Multimedia Networking Index Fund, iShares S&P North American Technology-Semiconductors Index Fund, iShares S&P North American Technology-Software Index Fund, iShares S&P North American Natural Resources Sector Index Fund, iShares MSCI EAFE Index Fund, iShares MSCI EAFE Growth Index Fund, iShares MSCI EAFE Value Index Fund, iShares FTSE/Xinhua China 25 Index Fund, iShares MSCI EAFE Small Cap Index Fund, iShares MSCI Kokusai Index Fund, iShares FTSE Developed Small Cap ex-North America Index Fund, iShares FTSE China (HK Listed) Index Fund, iShares MSCI ACWI Index Fund, iShares MSCI ACWI ex US Index Fund, iShares MSCI All Country Asia ex Japan Index Fund, iShares NYSE Composite Index Fund, iShares NYSE 100 Index Fund, iShares S&P Conservative Allocation Fund, iShares S&P Moderate Allocation Fund, iShares S&P Growth Allocation Fund, iShares S&P Aggressive Allocation Fund, iShares S&P Target Date Retirement Income Index Fund, iShares S&P Target Date 2010 Index Fund, iShares S&P Target Date 2015 Index Fund, iShares S&P Target Date 2020 Index Fund, iShares S&P Target Date 2025 Index Fund, iShares S&P Target Date 2030 Index Fund, iShares S&P Target Date 2035 Index Fund, and iShares S&P Target Date 2040 Index Fund;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the Registrant as of, and for, the periods presented in this report;

4. The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the Registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and

d) Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5. The Registrant’s other certifying officer and I have disclosed to the Registrant’s auditors and the audit committee of the Registrant’s board of trustees (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize, and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

Date: September 25, 2009	/s/ Michael A. Latham	President (Principal Executive Officer)
	Michael A. Latham [Signature]	[Title]

N-CSR Exhibit for Item 12(a)(2): SECTION 302 CERTIFICATIONS EX-99.CERT

I, Jack Gee, certify that:

1. I have reviewed this report on Form N-CSR of iShares Trust for the following thirty series of iShares Trust: iShares S&P North American Technology Sector Index Fund, iShares S&P North American Technology-Multimedia Networking Index Fund, iShares S&P North American Technology-Semiconductors Index Fund, iShares S&P North American Technology-Software Index Fund, iShares S&P North American Natural Resources Sector Index Fund, iShares MSCI EAFE Index Fund, iShares MSCI EAFE Growth Index Fund, iShares MSCI EAFE Value Index Fund, iShares FTSE/Xinhua China 25 Index Fund, iShares MSCI EAFE Small Cap Index Fund, iShares MSCI Kokusai Index Fund, iShares FTSE Developed Small Cap ex-North America Index Fund, iShares FTSE China (HK Listed) Index Fund, iShares MSCI ACWI Index Fund, iShares MSCI ACWI ex US Index Fund, iShares MSCI All Country Asia ex Japan Index Fund, iShares NYSE Composite Index Fund, iShares NYSE 100 Index Fund, iShares S&P Conservative Allocation Fund, iShares S&P Moderate Allocation Fund, iShares S&P Growth Allocation Fund, iShares S&P Aggressive Allocation Fund, iShares S&P Target Date Retirement Income Index Fund, iShares S&P Target Date 2010 Index Fund, iShares S&P Target Date 2015 Index Fund, iShares S&P Target Date 2020 Index Fund, iShares S&P Target Date 2025 Index Fund, iShares S&P Target Date 2030 Index Fund, iShares S&P Target Date 2035 Index Fund, and iShares S&P Target Date 2040 Index Fund;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the Registrant as of, and for, the periods presented in this report;

4. The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the Registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and

d) Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5. The Registrant’s other certifying officer and I have disclosed to the Registrant’s auditors and the audit committee of the Registrant’s board of trustees (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize, and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

Date: September 25, 2009	/s/ Jack Gee	Treasurer and Chief Financial Officer (Principal Financial Officer)
	Jack Gee [Signature]	[Title]

EX-99.(B)

Ex.99.906 CERT

N-CSR Exhibit for Item 12(b): CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

Michael A. Latham, President (Principal Executive Officer), and Jack Gee, Treasurer and Chief Financial Officer (Principal Financial Officer), of iShares Trust (the “Registrant”), each certify that:

1. The Registrant’s periodic report on Form N-CSR for the period ended July 31, 2009 (the “Form N-CSR”) fully complies with the requirements of Section 15(d) of the Securities Exchange Act of 1934, as amended; and

2. The information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

Date: September 25, 2009	/s/ Michael A. Latham	President (Principal Executive Officer)
	Michael A. Latham [Signature]	[Title]

Date: September 25, 2009	/s/ Jack Gee	Treasurer and Chief Financial Officer (Principal Financial Officer)
	Jack Gee [Signature]	[Title]