SUPPLEMENT DATED OCTOBER 25, 2001

                                       TO

                                 iSHARES, INC.

                                   PROSPECTUS

                             DATED JANUARY 2, 2001

The information in this Supplement updates the information in, and should be
read in conjunction with, the Prospectus of iShares, Inc., dated January 2,
2001.

Special Meeting of Shareholders

     iShares, Inc. has filed preliminary proxy materials for a special meeting
of shareholders to be held on or about December 19, 2001 at which shareholders
of record at the close of business on September 26, 2001 are eligible to vote.
Among the matters that iShares, Inc.'s Board of Directors has recommended for
approval to shareholders of record on the record date are:

     *    the election of six Directors to the Board of Directors of the
          Company, each of whom will serve until his respective successor is
          elected and qualified (all shareholders);

     *    the approval of a new advisory agreement with Barclays Global Fund
          Advisors which effects a change to the fee structure but which does
          not affect the net advisory fee or the total expenses payable by any
          Index Fund (all shareholders);

     *    the approval of a change to the Company's fundamental investment
          policy to permit each Index Fund to invest 25% or more of its total
          assets in a single issuer (all shareholders);

     *    the approval of a change to the Company's fundamental investment
          policy with respect to industry concentration (all shareholders); and

     *    the approval of a change of the iShares MSCI Japan Index Fund and the
          iShares MSCI United Kingdom Index Fund from diversified to non-
          diversified (holders of the iShares MSCI Japan Index Fund only).

Changes in the MSCI Indices

     Morgan Stanley Capital International Inc. (MSCI), the compiler of the
benchmark indices utilized by each of the Index Funds, has announced significant
methodology changes to all of its equity indices.  According to MSCI, the
methodology will change as follows:

     *    Index constituents with free-float (generally, shares not held by
          affiliates) greater than 15% will be included at their actual float
          level, rounded up to the nearest 5%.

     *    Target market coverage will be increased from the current 60% of the
          total market capitalization to 85% of the float-adjusted market
          capitalization within each industry group and within each country.


     *    The changes to the MSCI Indices will occur in two stages, on November
          30, 2001 and May 31, 2002. MSCI is currently publishing index
          constituents and their inclusion factors based on the new methodology
          and has been calculating and disseminating the indices that utilize
          the new methodology, called "Provisional Indices" since May 31, 2001.
          MSCI advises that the Provisional Indices will be calculated alongside
          MSCI's existing indices until May 31, 2002, on which the Provisional
          Indices will replace the existing indices and become the definitive
          MSCI Indices.

     Based on the recommendation of the Investment Advisor, the Board of
Directors of iShares, Inc. determined that it was in the best interests of each
Index Fund to implement the Provisional Indices as the new benchmark indices of
the Index Funds during a transition period commencing June 1, 2001. All of the
transitions were completed by June 30, 2001 and each Index Fund has been using
the appropriate Provisional Index as its benchmark for purposes of its
investment objective since the date it completed such transition.

Changes in the Malaysian Capital Controls

     The Company understands, based on publicly available information, that the
Finance Ministry of Malaysia has abolished, effective May 2, 2001, the exit levy
of 10% that had applied to profits repatriated by foreign entities. Accordingly,
the iShares MSCI Malaysia (Free) Index Fund no longer will be required under the
Malaysian capital controls to pay a profits levy when it sells Malaysian
securities in its portfolio and repatriates the proceeds (e.g., in connection
with redemptions).

     The Malaysian capital controls have been changed in significant ways since
they were first adopted without warning on September 1, 1998.  There can be no
assurance that the Malaysian capital controls will not be changed in the future
in ways that adversely affect the Fund and its shareholders.