SUPPLEMENT DATED JUNE 14, 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.

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 has commenced publishing index constituents and
their inclusion factors based on the new methodology and has announced that it
will calculate and disseminate the indices that utilize the new methodology,
called "Provisional Indices" beginning 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 recommendations of the Investment Adviser, the Board of
Directors of iShares, Inc. has determined that it is in the best interests of
each Index Fund to implement the Provisional Indices as the new benchmark
indices of the Index Funds over a three-month transition period beginning June
1, 2001 and targeted for completion on August 31, 2001.  During this transition
period, the Investment Adviser will manage the rebalancing of each Index Fund's
portfolio, consistent with the Provisional Indices, with a view to minimizing
transaction costs and adverse tax consequences.  After the transitions are
completed, each applicable Provisional Index will become the new benchmark index
by which an Index Fund will attempt to achieve its stated investment objective
of seeking investment results similar to the performance of a single stock
market or all of the stock markets in a geographic region, as such performance
is measured by the applicable MSCI Index.

     Although the Board of Directors and the Investment Adviser believe that the
transition to the Provisional Indices will be in the best interests of each
Index Fund, neither iShares, Inc. nor the Investment Adviser can assure that the
transition will have no adverse effects on an Index Fund.  It should be noted
that tracking will be adversely affected during the transition period, since
each Index Fund's benchmark will not change until the transition is complete.

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.