N-CSRS

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSRS

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-09102

iShares, Inc.

(Exact name of registrant as specified in charter)

c/o: Investors Bank & Trust Company

200 Clarendon Street; Boston, MA 02116

(Address of principal executive offices) (Zip code)

Corporation Trust Incorporated

300 East Lombard Street; Baltimore, MD 21202

(Name and address of agent for service)

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

Date of fiscal year end: August 31, 2005

Date of reporting period: February 28, 2005

Item 1. Reports to stockholders

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

Fund Performance Overview	1
Shareholder Expenses	12
Schedules of Investments	14
iShares MSCI Austria Index Fund	14
iShares MSCI Belgium Index Fund	19
iShares MSCI EMU Index Fund	23
iShares MSCI France Index Fund	31
iShares MSCI Germany Index Fund	37
iShares MSCI Italy Index Fund	42
iShares MSCI Netherlands Index Fund	47
iShares MSCI Spain Index Fund	52
iShares MSCI Sweden Index Fund	57
iShares MSCI Switzerland Index Fund	62
iShares MSCI United Kingdom Index Fund	67
Financial Statements	74
Financial Highlights	82
Notes to the Financial Statements	93
iShares Family of Funds	102

Fund Performance Overview

iSHARES^® MSCI AUSTRIA INDEX FUND

Performance as of 2/28/05

The iShares MSCI Austria Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the Austrian market, as measured by the MSCI Austria Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which have a similar investment profile as the Index. For the six months ended February 28, 2005, the Fund returned 42.57%, while the Index returned 44.23%.

Average Annual Total Returns
Year Ended 2/28/05			Five Years Ended 2/28/05			Inception to 2/28/05
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
59.93%	59.84%	63.88%	27.23%	27.29%	27.34%	10.95%	11.01%	11.98%
Cumulative Total Returns
Year Ended 2/28/05			Five Years Ended 2/28/05			Inception to 2/28/05
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
59.93%	59.84%	63.88%	233.35%	234.19%	234.82%	154.06%	155.28%	175.98%

Total returns for the periods since inception are calculated from the inception date of the Fund (3/12/96). “Average annual total returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative total returns” represent the total change in value of an investment over the periods indicated.

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

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until several days after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (3/18/96), the NAV of the Fund is used as a proxy for the secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

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

PORTFOLIO ALLOCATION As of 2/28/05
Sector	% of Net Assets
Financial	35.62	%
Communications	16.28
Basic Materials	15.94
Energy	13.64
Industrial	12.38
Utilities	5.66
Consumer Cyclical	0.39
Short-Term and Other Net Assets	0.09
TOTAL	100.00	%

TOP TEN FUND HOLDINGS As of 2/28/05
Security	% of Net Assets
Erste Bank der Oesterreichischen Sparkassen AG	20.17	%
Telekom Austria AG	16.28
OMV AG	13.64
Bank Austria Creditanstalt	5.14
Immofinanz Immobilien Anlage AG	4.75
Boehler-Uddeholm AG	4.75
Wienerberger Baustoffindustrie AG	4.68
Oesterreichische Elektrizitaetswirtschafts AG Class A	4.57
Voest-Alpine AG	4.54
Mayr-Melnhof Karton AG	4.44
TOTAL	82.96	%

FUND PERFORMANCE OVERVIEW 1

Fund Performance Overview

iSHARES^® MSCI BELGIUM INDEX FUND

Performance as of 2/28/05

The iShares MSCI Belgium Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the Belgian market, as measured by the MSCI Belgium Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which have a similar investment profile as the Index. For the six months ended February 28, 2005, the Fund returned 31.19%, while the Index returned 31.27%.

Average Annual Total Returns
Year Ended 2/28/05			Five Years Ended 2/28/05			Inception to 2/28/05
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
36.45%	35.53%	36.02%	12.31%	11.81%	9.51%	9.21%	9.13%	9.35%
Cumulative Total Returns
Year Ended 2/28/05			Five Years Ended 2/28/05			Inception to 2/28/05
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
36.45%	35.53%	36.02%	78.70%	74.72%	57.52%	120.32%	119.02%	122.95%

Total returns for the periods since inception are calculated from the inception date of the Fund (3/12/96). “Average annual total returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative total returns” represent the total change in value of an investment over the periods indicated.

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

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until several days after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (3/18/96), the NAV of the Fund is used as a proxy for the secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

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

PORTFOLIO ALLOCATION As of 2/28/05
Sector	% of Net Assets
Financial	44.99	%
Consumer Non-Cyclical	17.27
Utilities	11.16
Basic Materials	7.28
Communications	7.10
Industrial	6.37
Diversified	4.99
Consumer Cyclical	0.72
Short-Term and Other Net Assets	0.12
TOTAL	100.00	%

TOP TEN FUND HOLDINGS As of 2/28/05
Security	% of Net Assets
Fortis	23.80	%
Dexia Group	12.82
Electrabel SA	11.16
KBC Groupe	5.03
Groupe Bruxelles Lambert SA	4.99
Belgacom SA	4.88
Solvay SA	4.87
InBev	4.83
Delhaize Group	4.58
UCB SA	3.90
TOTAL	80.86	%

2 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® MSCI EMU INDEX FUND

Performance as of 2/28/05

The iShares MSCI EMU Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the European Monetary Union (“EMU”) markets, as measured by the MSCI EMU Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which have a similar investment profile as the Index. For the six months ended February 28, 2005, the Fund returned 26.90%, while the Index returned 27.21%.

Average Annual Total Returns												Cumulative Total Returns
Year Ended 2/28/05						Inception to 2/28/05						Inception to 2/28/05
NAV		MARKET		INDEX		NAV		MARKET		INDEX		NAV		MARKET		INDEX
19.67	%	18.41	%	19.95	%	(0.73	)%	(0.75	)%	(0.36	)%	(3.32	)%	(3.40	)%	(1.66	)%

Total returns for the periods since inception are calculated from the inception date of the Fund (7/25/00). “Average annual total returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative total returns” represent the total change in value of an investment over the periods indicated.

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

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until several days after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (7/31/00), the NAV of the Fund is used as a proxy for the secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

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

PORTFOLIO ALLOCATION As of 2/28/05
Sector	% of Net Assets
Financial	28.85	%
Communications	15.49
Energy	11.78
Consumer Non-Cyclical	11.64
Industrial	9.61
Utilities	7.64
Consumer Cyclical	6.25
Basic Materials	5.16
Technology	2.52
Diversified	0.84
Short-Term and Other Net Assets	0.22
TOTAL	100.00	%

TOP TEN FUND HOLDINGS As of 2/28/05
Security	% of Net Assets
Total SA (France)	4.29	%
Royal Dutch Petroleum Co. (Netherlands)	4.16
Telefonica SA (Spain)	2.58
Sanofi-Aventis (France)	2.46
Banco Santander Central Hispano SA (Spain)	2.34
Nokia OYJ (Finland)	2.30
ENI SpA (Italy)	2.17
Siemens AG (Germany)	1.98
BNP Paribas SA (France)	1.83
ING Groep NV (Netherlands)	1.82
TOTAL	25.93	%

FUND PERFORMANCE OVERVIEW 3

Fund Performance Overview

iSHARES^® MSCI FRANCE INDEX FUND

Performance as of 2/28/05

The iShares MSCI France Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the French market, as measured by the MSCI France Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which have a similar investment profile as the Index. For the six months ended February 28, 2005, the Fund returned 22.31%, while the Index returned 22.59%.

Average Annual Total Returns
Year Ended 2/28/05						Five Years Ended 2/28/05						Inception to 2/28/05
NAV		MARKET		INDEX		NAV		MARKET		INDEX		NAV		MARKET		INDEX
18.31	%	17.79	%	18.35	%	(0.50	)%	(0.88	)%	(0.25	)%	10.23	%	10.24	%	10.47	%
Cumulative Total Returns
Year Ended 2/28/05						Five Years Ended 2/28/05						Inception to 2/28/05
NAV		MARKET		INDEX		NAV		MARKET		INDEX		NAV		MARKET		INDEX
18.31	%	17.79	%	18.35	%	(2.45	)%	(4.32	)%	(1.25	)%	139.59	%	139.71	%	144.35	%

Total returns for the periods since inception are calculated from the inception date of the Fund (3/12/96). “Average annual total returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative total returns” represent the total change in value of an investment over the periods indicated.

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until several days after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (3/18/96), the NAV of the Fund is used as a proxy for the secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

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

PORTFOLIO ALLOCATION As of 2/28/05
Sector	% of Net Assets
Consumer Non-Cyclical	20.44%
Financial	19.24
Energy	15.93
Communications	12.66
Industrial	11.17
Consumer Cyclical	8.27
Utilities	3.71
Basic Materials	3.60
Technology	2.73
Diversified	2.08
Short-Term and Other Net Assets	0.17
TOTAL	100.00%

TOP TEN FUND HOLDINGS As of 2/28/05
Security	% of Net Assets
Total SA	15.54	%
Sanofi-Aventis	8.96
BNP Paribas SA	6.62
France Telecom	5.13
AXA	4.37
Societe Generale Class A	4.04
Vivendi Universal SA	3.69
Carrefour SA	3.44
Groupe Danone	2.76
L’Oreal SA	2.74
TOTAL	57.29	%

4 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® MSCI GERMANY INDEX FUND

Performance as of 2/28/05

The iShares MSCI Germany Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the German market, as measured by the MSCI Germany Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which have a similar investment profile as the Index. For the six months ended February 28, 2005, the Fund returned 25.24%, while the Index returned 25.63%.

Average Annual Total Returns
Year Ended 2/28/05						Five Years Ended 2/28/05						Inception to 2/28/05
NAV		MARKET		INDEX		NAV		MARKET		INDEX		NAV		MARKET		INDEX
15.65	%	14.97	%	15.86	%	(4.60	)%	(4.83	)%	(4.58	)%	6.35	%	6.32	%	6.80	%
Cumulative Total Returns
Year Ended 2/28/05						Five Years Ended 2/28/05						Inception to 2/28/05
NAV		MARKET		INDEX		NAV		MARKET		INDEX		NAV		MARKET		INDEX
15.65	%	14.97	%	15.86	%	(20.97	)%	(21.91	)%	(20.92	)%	73.68	%	73.34	%	80.47	%

Total returns for the periods since inception are calculated from the inception date of the Fund (3/12/96). “Average annual total returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative total returns” represent the total change in value of an investment over the periods indicated.

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

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until several days after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (3/18/96), the NAV of the Fund is used as a proxy for the secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

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

PORTFOLIO ALLOCATION As of 2/28/05
Sector	% of Net Assets
Financial	23.28	%
Consumer Cyclical	14.66
Industrial	14.60
Utilities	13.31
Basic Materials	10.75
Communications	9.32
Consumer Non-Cyclical	8.05
Technology	5.96
Short-Term and Other Net Assets	0.07
TOTAL	100.00	%

TOP TEN FUND HOLDINGS As of 2/28/05
Security	% of Net Assets
Siemens AG	10.07	%
Deutsche Telekom AG	9.05
E.ON AG	8.88
Deutsche Bank AG	6.99
DaimlerChrysler AG	6.46
BASF AG	5.69
Allianz AG	4.97
SAP AG	4.88
RWE AG	3.94
Bayer AG	3.82
TOTAL	64.75	%

FUND PERFORMANCE OVERVIEW 5

Fund Performance Overview

iSHARES^® MSCI ITALY INDEX FUND

Performance as of 2/28/05

The iShares MSCI Italy Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the Italian market, as measured by the MSCI Italy Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which have a similar investment profile as the Index. For the six months ended February 28, 2005, the Fund returned 30.95%, while the Index returned 31.23%.

Average Annual Total Returns
Year Ended 2/28/05			Five Years Ended 2/28/05			Inception to 2/28/05
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
29.41%	28.57%	29.43%	3.20%	3.12%	3.10%	12.58%	12.55%	12.46%
Cumulative Total Returns
Year Ended 2/28/05			Five Years Ended 2/28/05			Inception to 2/28/05
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
29.41%	28.57%	29.43%	17.05%	16.60%	16.49%	189.47%	188.83%	186.78%

Total returns for the periods since inception are calculated from the inception date of the Fund (3/12/96). “Average annual total returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative total returns” represent the total change in value of an investment over the periods indicated.

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

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until several days after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (3/18/96), the NAV of the Fund is used as a proxy for the secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

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

PORTFOLIO ALLOCATION As of 2/28/05
Sector	% of Net Assets
Financial	42.43	%
Communications	19.23
Energy	18.31
Utilities	11.32
Consumer Non-Cyclical	3.18
Consumer Cyclical	3.14
Industrial	2.11
Short-Term and Other Net Assets	0.28
TOTAL	100.00	%

TOP TEN FUND HOLDINGS As of 2/28/05
Security	% of Net Assets
ENI SpA	18.31	%
Telecom Italia SpA	8.81
Assicurazioni Generali SpA	8.43
Enel SpA	7.56
Telecom Italia SpA RNC	5.19
UniCredito Italiano SpA	4.85
Sanpaolo IMI SpA	4.49
Banca Intesa SpA	4.12
Snam Rete Gas SpA	2.36
Mediobanca SpA	2.35
TOTAL	66.47	%

6 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® MSCI NETHERLANDS INDEX FUND

Performance as of 2/28/05

The iShares MSCI Netherlands Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the Dutch market, as measured by the MSCI Netherlands Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which have a similar investment profile as the Index. For the six months ended February 28, 2005, the Fund returned 25.92%, while the Index returned 26.60%.

Average Annual Total Returns
Year Ended 2/28/05						Five Years Ended 2/28/05						Inception to 2/28/05
NAV		MARKET		INDEX		NAV		MARKET		INDEX		NAV		MARKET		INDEX
18.17	%	17.71	%	18.16	%	(1.89	)%	(2.13	)%	(0.70	)%	5.70	%	5.70	%	7.08	%
Cumulative Total Returns
Year Ended 2/28/05						Five Years Ended 2/28/05						Inception to 2/28/05
NAV		MARKET		INDEX		NAV		MARKET		INDEX		NAV		MARKET		INDEX
18.17	%	17.71	%	18.16	%	(9.08	)%	(10.18	)%	(3.46	)%	64.36	%	64.41	%	84.70	%

Total returns for the periods since inception are calculated from the inception date of the Fund (3/12/96). “Average annual total returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative total returns” represent the total change in value of an investment over the periods indicated.

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

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until several days after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (3/18/96), the NAV of the Fund is used as a proxy for the secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

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

PORTFOLIO ALLOCATION As of 2/28/05
Sector	% of Net Assets
Financial	25.40	%
Energy	24.75
Consumer Non-Cyclical	19.71
Communications	11.67
Industrial	8.85
Basic Materials	5.29
Technology	3.50
Consumer Cyclical	0.34
Short-Term and Other Net Assets	0.49
TOTAL	100.00	%

TOP TEN FUND HOLDINGS As of 2/28/05
Security	% of Net Assets
Royal Dutch Petroleum Co.	24.75	%
ING Groep NV	14.28
Unilever NV CVA	9.03
ABN AMRO Holding NV	4.83
Koninklijke Philips Electronics NV	4.80
AEGON NV	4.52
Koninklijke KPN NV	4.48
Akzo Nobel NV	4.11
TPG NV	4.05
Reed Elsevier NV	3.79
TOTAL	78.64	%

FUND PERFORMANCE OVERVIEW 7

Fund Performance Overview

iSHARES^® MSCI SPAIN INDEX FUND

Performance as of 2/28/05

The iShares MSCI Spain Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the Spanish market, as measured by the MSCI Spain Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which have a similar investment profile as the Index. For the six months ended February 28, 2005, the Fund returned 32.08%, while the Index returned 31.53%.

Average Annual Total Returns
Year Ended 2/28/05						Five Years Ended 2/28/05						Inception to 2/28/05
NAV		MARKET		INDEX		NAV		MARKET		INDEX		NAV		MARKET		INDEX
24.57	%	23.93	%	23.98	%	6.67	%	6.49	%	5.05	%	14.76	%	14.72	%	15.06	%
Cumulative Total Returns
Year Ended 2/28/05						Five Years Ended 2/28/05						Inception to 2/28/05
NAV		MARKET		INDEX		NAV		MARKET		INDEX		NAV		MARKET		INDEX
24.57	%	23.93	%	23.98	%	38.08	%	36.98	%	27.93	%	243.86	%	242.84	%	251.83	%

Total returns for the periods since inception are calculated from the inception date of the Fund (3/12/96). “Average annual total returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative total returns” represent the total change in value of an investment over the periods indicated.

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

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until several days after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (3/18/96), the NAV of the Fund is used as a proxy for the secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

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

PORTFOLIO ALLOCATION As of 2/28/05
Sector	% of Net Assets
Financial	35.89	%
Communications	22.94
Utilities	14.99
Consumer Non-Cyclical	8.23
Industrial	6.55
Energy	5.43
Consumer Cyclical	3.47
Basic Materials	1.70
Technology	0.73
Short-Term and Other Net Assets	0.07
TOTAL	100.00	%

TOP TEN FUND HOLDINGS As of 2/28/05
Security	% of Net Assets
Telefonica SA	20.81	%
Banco Santander Central Hispano SA	15.36
Banco Bilbao Vizcaya Argentaria SA	12.18
Repsol YPF SA	5.00
Iberdrola SA	4.87
Endesa SA	4.87
Banco Popular Espanol SA	4.85
Altadis SA	3.54
Actividades de Construcciones y Servicios SA	2.47
Industria de Diseno Textil SA	2.28
TOTAL	76.23	%

8 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® MSCI SWEDEN INDEX FUND

Performance as of 2/28/05

The iShares MSCI Sweden Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the Swedish market, as measured by the MSCI Sweden Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which have a similar investment profile as the Index. For the six months ended February 28, 2005, the Fund returned 26.64%, while the Index returned 26.95%.

Average Annual Total Returns
Year Ended 2/28/05]						Five Years Ended 2/28/05						Inception to 2/28/05
NAV		MARKET		INDEX		NAV		MARKET		INDEX		NAV		MARKET		INDEX
25.97	%	24.90	%	26.41	%	(4.89	)%	(5.06	)%	(6.07	)%	10.56	%	10.52	%	11.89	%
Cumulative Total Returns
Year Ended 2/28/05						Five Years Ended 2/28/05						Inception to 2/28/05
NAV		MARKET		INDEX		NAV		MARKET		INDEX		NAV		MARKET		INDEX
25.97	%	24.90	%	26.41	%	(22.18	)%	(22.86	)%	(26.87	)%	146.02	%	145.33	%	173.99	%

Total returns for the periods since inception are calculated from the inception date of the Fund (3/12/96). “Average annual total returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative total returns” represent the total change in value of an investment over the periods indicated.

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

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until several days after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (3/18/96), the NAV of the Fund is used as a proxy for the secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

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

PORTFOLIO ALLOCATION As of 2/28/05
Sector	% of Net Assets
Communications	27.63	%
Financial	23.44
Consumer Cyclical	18.99
Industrial	15.44
Consumer Non-Cyclical	8.05
Basic Materials	5.49
Energy	0.52
Technology	0.37
Short-Term and Other Net Assets	0.07
TOTAL	100.00	%

TOP TEN FUND HOLDINGS As of 2/28/05
Security	% of Net Assets
Telefonaktiebolaget LM Ericsson Class B	19.07	%
Nordea AB	9.81
Hennes & Mauritz AB Class B	7.30
TeliaSonera AB	5.51
Svenska Handelsbanken AB Class A	4.98
Volvo AB Class B	4.56
Skandinaviska Enskilda Banken AB Class A	4.11
Sandvik AB	4.01
Svenska Cellulosa AB Class B	3.34
Electrolux AS Series B	2.99
TOTAL	65.68	%

FUND PERFORMANCE OVERVIEW 9

Fund Performance Overview

iSHARES^® MSCI SWITZERLAND INDEX FUND

Performance as of 2/28/05

The iShares MSCI Switzerland Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the Swiss market, as measured by the MSCI Switzerland Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which have a similar investment profile as the Index. For the six months ended February 28, 2005, the Fund returned 20.30%, while the Index returned 20.03%.

Average Annual Total Returns
Year Ended 2/28/05			Five Years Ended 2/28/05			Inception to 2/28/05
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
15.85%	16.68%	14.09%	4.85%	4.73%	6.14%	6.22%	6.32%	7.58%
Cumulative Total Returns
Year Ended 2/28/05			Five Years Ended 2/28/05			Inception to 2/28/05
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
15.85%	16.68%	14.09%	26.74%	26.01%	34.70%	71.86%	73.24%	92.66%

Total returns for the periods since inception are calculated from the inception date of the Fund (3/12/96). “Average annual total returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative total returns” represent the total change in value of an investment over the periods indicated.

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until several days after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (3/18/96), the NAV of the Fund is used as a proxy for the secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

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

PORTFOLIO ALLOCATION As of 2/28/05
Sector	% of Net Assets
Consumer Non-Cyclical	45.79	%
Financial	26.08
Basic Materials	8.50
Industrial	8.12
Consumer Cyclical	6.50
Communications	2.98
Technology	0.44
Short-Term and Other Net Assets	1.59
TOTAL	100.00	%

TOP TEN FUND HOLDINGS As of 2/28/05
Security	% of Net Assets
Novartis AG	16.61	%
Nestle SA Registered	12.23
UBS AG Registered	9.82
Roche Holding AG Genusschein	8.05
Credit Suisse Group	4.89
Zurich Financial Services AG	4.66
Swiss Reinsurance Co.	4.19
Holcim Ltd. Registered	3.83
Syngenta AG	2.95
Compagnie Financiere Richemont AG Class A	2.91
TOTAL	70.14	%

10 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® MSCI UNITED KINGDOM INDEX FUND

Performance as of 2/28/05

The iShares MSCI United Kingdom Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the British market, as measured by the MSCI United Kingdom Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which have a similar investment profile as the Index. For the six months ended February 28, 2005, the Fund returned 20.62%, while the Index returned 21.00%.

Average Annual Total Returns
Year Ended 2/28/05						Five Years Ended 2/28/05						Inception to 2/28/05
NAV		MARKET		INDEX		NAV		MARKET		INDEX		NAV		MARKET		INDEX
18.51	%	16.28	%	19.40	%	3.02	%	2.54	%	3.61	%	8.56	%	8.49	%	9.25	%
Cumulative Total Returns
Year Ended 2/28/05						Five Years Ended 2/28/05						Inception to 2/28/05
NAV		MARKET		INDEX		NAV		MARKET		INDEX		NAV		MARKET		INDEX
18.51	%	16.28	%	19.40	%	16.02	%	13.37	%	19.41	%	108.93	%	107.76	%	121.15	%

Total returns for the periods since inception are calculated from the inception date of the Fund (3/12/96). “Average annual total returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative total returns” represent the total change in value of an investment over the periods indicated.

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until several days after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (3/18/96), the NAV of the Fund is used as a proxy for the secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

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

PORTFOLIO ALLOCATION As of 2/28/05
Sector	% of Net Assets
Financial	26.76	%
Consumer Non-Cyclical	21.19
Energy	15.01
Communications	13.22
Consumer Cyclical	7.66
Basic Materials	5.77
Industrial	4.86
Utilities	4.32
Technology	0.55
Diversified	0.18
Short-Term and Other Net Assets	0.48
TOTAL	100.00	%

TOP TEN FUND HOLDINGS As of 2/28/05
Security	% of Net Assets
BP PLC	9.96	%
HSBC Holdings PLC	7.98
Vodafone Group PLC	7.38
GlaxoSmithKline PLC	6.01
Royal Bank of Scotland Group PLC	4.65
Shell Transport & Trading Co. PLC	3.87
Barclays PLC	2.99
AstraZeneca PLC	2.78
HBOS PLC	2.68
Lloyds TSB Group PLC	2.26
TOTAL	50.56	%

FUND PERFORMANCE OVERVIEW 11

Shareholder Expenses

iSHARES^®, INC.

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

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from September 1, 2004 to February 28, 2005.

Actual Expenses

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

Hypothetical Example for Comparison Purposes

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

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

iShares MSCI Index Fund	Beginning Account Value (September 1, 2004)		Ending Account Value (February 28, 2005)		Annualized Expense Ratio		Expenses Paid During Period* (September 1, 2004 to February 28, 2005)
Austria
Actual	$	1,000.00	$	1,425.70	0.58	%	$	3.49
Hypothetical (5% return before expenses)		1,000.00		1,021.92	0.58			2.91
Belgium
Actual		1,000.00		1,311.90	0.58			3.32
Hypothetical (5% return before expenses)		1,000.00		1,021.92	0.58			2.91
EMU
Actual		1,000.00		1,269.00	0.58			3.26
Hypothetical (5% return before expenses)		1,000.00		1,021.92	0.58			2.91
France
Actual		1,000.00		1,223.10	0.58			3.20
Hypothetical (5% return before expenses)		1,000.00		1,021.92	0.58			2.91

12 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Shareholder Expenses (Continued)

iSHARES^®, INC.

iShares MSCI Index Fund	Beginning Account Value (September 1, 2004)		Ending Account Value (February 28, 2005)		Annualized Expense Ratio		Expenses Paid During Period* (September 1, 2004 to February 28, 2005)
Germany
Actual	$	1,000.00	$	1,252.40	0.58	%	$	3.24
Hypothetical (5% return before expenses)		1,000.00		1,021.92	0.58			2.91
Italy
Actual		1,000.00		1,309.50	0.58			3.32
Hypothetical (5% return before expenses)		1,000.00		1,021.92	0.58			2.91
Netherlands
Actual		1,000.00		1,259.20	0.58			3.25
Hypothetical (5% return before expenses)		1,000.00		1,021.92	0.58			2.91
Spain
Actual		1,000.00		1,320.80	0.58			3.34
Hypothetical (5% return before expenses)		1,000.00		1,021.92	0.58			2.91
Sweden
Actual		1,000.00		1,266.40	0.58			3.26
Hypothetical (5% return before expenses)		1,000.00		1,021.92	0.58			2.91
Switzerland
Actual		1,000.00		1,203.00	0.58			3.17
Hypothetical (5% return before expenses)		1,000.00		1,021.92	0.58			2.91
United Kingdom
Actual		1,000.00		1,206.20	0.58			3.17
Hypothetical (5% return before expenses)		1,000.00		1,021.92	0.58			2.91

* 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 13

Schedule of Investments (Unaudited)

iSHARES^® MSCI AUSTRIA INDEX FUND

February 28, 2005

Security	Shares or Principal		Value
COMMON STOCKS – 99.30%
AIRLINES – 0.39%
Austrian Airlines AG1,2		63,615	$	737,156
				737,156
BANKS – 25.31%
Bank Austria Creditanstalt		99,450		9,702,364
Erste Bank der Oesterreichischen Sparkassen AG		696,062		38,065,417
				47,767,781
BUILDING MATERIALS – 4.68%
Wienerberger Baustoffindustrie AG		177,138		8,828,911
				8,828,911
CHEMICALS – 2.22%
Lenzing AG		15,409		4,192,893
				4,192,893
ELECTRIC – 5.66%
EVN AG		27,378		2,062,306
Oesterreichische Elektrizitaetswirtschafts AG Class A		36,192		8,623,081
				10,685,387
ENGINEERING & CONSTRUCTION – 4.19%
Flughafen Wien AG		101,556		7,912,781
				7,912,781
ENVIRONMENTAL CONTROL – 0.75%
BWT AG		38,959		1,414,329
				1,414,329
FOREST PRODUCTS & PAPER – 4.44%
Mayr-Melnhof Karton AG		47,019		8,378,633
				8,378,633
INSURANCE – 2.00%
Generali Holding Vienna AG		90,009		3,766,998
				3,766,998
IRON & STEEL – 9.28%
Boehler-Uddeholm AG		59,202		8,958,322
Voest-Alpine AG2		102,492		8,559,810
				17,518,132
MACHINERY – CONSTRUCTION & MINING – 0.35%
Palfinger AG		11,076		666,723
				666,723
MANUFACTURING – 2.41%
RHI AG1,2		145,645		4,544,998
				4,544,998
OIL & GAS – 13.64%
OMV AG2		74,126		25,739,124
				25,739,124
REAL ESTATE – 7.70%
CA Immobilien Anlagen AG1,2		205,686		5,561,363
Immofinanz Immobilien Anlage AG1,2		949,494		8,960,810
				14,522,173
TELECOMMUNICATIONS – 16.28%
Telekom Austria AG2		1,542,908		30,719,684
				30,719,684
TOTAL COMMON STOCKS (Cost: $ 147,542,015)				187,395,703
PREFERRED STOCKS – 0.61%
INSURANCE – 0.61%
Wiener Staedtische Allgemeine Versicherung AG		25,525		1,158,039
				1,158,039
TOTAL PREFERRED STOCKS (Cost: $ 1,142,614)				1,158,039
SHORT-TERM INVESTMENTS – 12.00%
COMMERCIAL PAPER3 – 2.81%
Amstel Funding Corp. 2.95%, 08/19/05	$	45,237		44,603
Amsterdam Funding Corp. 2.53%, 03/01/05 - 03/10/05		119,714		119,666
ANZ National Bank Ltd. 2.94%, 08/15/05		54,416		53,675
Barton Capital Corp. 2.53% - 2.54%, 03/07/05 - 03/17/05		240,797		240,602
Blue Ridge Asset Funding Corp. 2.53%, 03/23/05		119,714		119,529
Bryant Park Funding LLC 2.50%, 03/16/05		10,883		10,872

14 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI AUSTRIA INDEX FUND

February 28, 2005

Security	Principal		Value
Chariot Funding LLC 2.54%, 03/21/05	$	108,831	$	108,678
Chesham Finance LLC 2.55%, 03/04/05		43,532		43,523
Corporate Asset Funding 2.55%, 03/24/05		54,416		54,327
CRC Funding LLC 2.53%, 03/11/05		27,208		27,189
Delaware Funding Corp. 2.53% - 2.54%, 03/09/05 - 03/22/05		201,819		201,595
DEPFA Bank PLC 2.28%, 05/03/05		54,416		54,199
Edison Asset Securitization 2.26% - 2.53%, 03/07/05 - 05/04/05		353,702		353,063
Fairway Finance LLC 2.53% - 2.54%, 03/09/05 - 03/22/05		103,751		103,639
Falcon Asset Securitization Corp. 2.53% - 2.54%, 03/14/05 - 03/18/05		419,612		419,122
Ford Credit Auto Receivables 2.28% - 2.55%, 03/15/05 - 04/27/05		252,706		252,242
Ford Credit Floorplan Motown 2.54% - 2.56%, 03/04/05 - 03/18/05		136,039		135,983
Fortis Funding LLC 2.35%, 05/09/05		152,364		151,677
General Electric Capital Corp. 2.53% - 2.74%, 03/08/05 - 07/07/05		239,429		238,808
Giro Funding US Corp. 2.54%, 03/14/05 - 03/18/05		131,197		131,058
Grampian Funding LLC 2.49% - 3.00%, 03/23/05 - 08/22/05		321,052		317,103
Jupiter Securitization Corp. 2.53%, 03/03/05 - 03/22/05		496,521		496,071
Kitty Hawk Funding Corp. 2.54%, 03/15/05		163,247		163,086
Liberty Street Funding Corp. 2.53% - 2.54%, 03/14/05 - 03/16/05		59,857		59,799
Moat Funding LLC 2.50%, 03/23/05		21,766		21,733
Nordea North America Inc. 2.74%, 07/11/05		54,416		53,869
Park Avenue Receivables Corp. 2.53%, 03/10/05 - 03/11/05		169,997		169,881
Park Granada LLC 2.55% - 2.58%, 03/18/05 - 03/21/05		76,182		76,084
Preferred Receivables Funding Corp. 2.53% - 2.54%, 03/14/05 - 03/21/05		231,244		230,924
Ranger Funding Co. LLC 2.54%, 03/04/05		32,363		32,356
Santander Central Hispano 2.75%, 07/08/05		136,039		134,701
Scaldis Capital LLC 2.75%, 07/08/05		27,238		26,970
Ticonderoga Master Funding Ltd. 2.54% - 2.57%, 03/21/05 - 03/24/05		184,565		184,294
Tulip Funding Corp. 2.54% - 2.55%, 03/01/05		181,668		181,668
UBS Finance (Delaware) 2.62%, 03/01/05		217,662		217,662
Windmill Funding Corp. 2.55%, 03/08/05		38,091		38,072
Yorktown Capital LLC 2.53%, 03/17/05		38,091		38,049
				5,306,372
FLOATING RATE NOTES3 – 4.41%
Allstate Life Global Funding II 2.58%, 01/10/064		50,062		50,064
American Express Centurion Bank 2.58%, 01/24/06		163,247		163,247

SCHEDULES OF INVESTMENTS 15

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI AUSTRIA INDEX FUND

February 28, 2005

Security	Principal		Value
American Express Credit Corp. 2.68%, 10/26/05	$	217,662	$	217,734
Bank of Nova Scotia 2.52% - 2.57%, 09/26/05 - 01/03/06		70,740		70,722
Beta Finance Inc. 2.53% - 2.79%, 03/15/05 - 10/27/05		408,117		408,149
Canadian Imperial Bank of Commerce 2.52% - 2.61%, 09/13/05 - 12/14/05		370,026		369,954
CC USA Inc. 2.53% - 2.66%, 05/04/05 - 07/29/05		217,662		217,645
Commodore CDO Ltd. 2.55%, 12/12/05		27,208		27,208
Den Danske Bank NY 2.52% - 2.60%, 08/12/05 - 10/17/05		326,494		326,443
DEPFA Bank PLC 2.47%, 12/15/05		108,831		108,831
Dorada Finance Inc. 2.66%, 07/29/05		90,330		90,319
Fairway Finance LLC 2.55%, 03/14/05 - 06/20/05		163,247		163,245
Fifth Third Bancorp 2.57%, 02/23/064		217,662		217,662
Five Finance Inc. 2.62% - 2.64%, 04/29/05 - 02/27/06		141,481		141,487
General Electric Capital Corp. 2.69%, 03/09/06		48,974		49,042
General Electric Commercial Equipment Financing LLC 2.56%, 11/20/05		46,480		46,480
Hartford Life Global Funding Trust 2.58%, 02/15/06		108,831		108,831
HBOS Treasury Services PLC 2.55% - 2.56%, 01/10/06 - 01/24/06		326,494		326,493
K2 USA LLC 2.55% - 2.64%, 06/10/05 - 02/15/06		489,741		489,747
Leafs LLC 2.60%, 01/20/06 - 02/21/064		114,273		114,272
Links Finance LLC 2.54% - 2.77%, 04/15/05 - 02/06/06		446,208		446,322
Lothian Mortgages PLC 2.61%, 01/24/06		217,662		217,662
MetLife Funding Inc. 2.58%, 03/06/06		163,247		163,247
National City Bank (Ohio) 2.52% - 2.58%, 06/10/05 - 08/09/05		272,078		272,058
Nationwide Building Society 2.58% - 2.64%, 01/06/06 - 01/27/064		402,676		402,760
Norddeutsche Landesbank 2.63%, 07/27/05		108,831		108,816
Northern Rock PLC 2.60% - 2.62%, 10/25/05 - 02/03/064		326,494		326,493
Permanent Financing PLC 2.54% - 2.57%, 03/10/05 - 09/12/05		293,844		293,844
Sedna Finance Inc. 2.56%, 01/10/06 - 01/17/06		59,857		59,845
Sigma Finance Inc. 2.54% - 2.79%, 08/17/05 - 01/09/06		555,039		555,067
Tango Finance Corp. 2.55% - 2.74%, 04/07/05 - 09/15/05		334,874		334,861
Wachovia Asset Securitization Inc. 2.64%, 03/25/05		326,494		326,494
Wells Fargo & Co. 2.56%, 03/15/064		54,416		54,423
WhistleJacket Capital LLC 2.45% - 2.57%, 06/15/05 - 01/17/06		380,909		380,878

16 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI AUSTRIA INDEX FUND

February 28, 2005

Security	Shares or Principal		Value
White Pine Finance LLC 2.54% - 2.80%, 03/29/05 - 01/13/06	$	595,307	$	595,263
Winston Funding Ltd. 2.75%, 04/25/05		77,706		77,706
				8,323,314
MEDIUM-TERM NOTES3 – 0.06%
CC USA Inc. 1.29%, 04/15/054		108,831		108,830
				108,830
MONEY MARKET FUNDS3 – 0.31%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares5		527,148		527,148
BlackRock Temp Cash Money Market Fund		20,296		20,296
Short-Term Investment Co. Prime Money Market Portfolio, Institutional Shares		41,065		41,065
				588,509
REPURCHASE AGREEMENTS3 – 2.25%
Bank of America N.A. Repurchase Agreements, dated 2/28/05, due 3/1/05, with a total maturity value of $2,448,882 and effective yields of 2.62% - 2.63%.6	$	2,448,702		2,448,702
Merrill Lynch Government Securities Inc. Repurchase Agreement, dated 2/28/05, due 3/1/05, with a maturity value of $1,795,847 and an effective yield of 2.63%.6		1,795,715		1,795,715
				4,244,417
TIME DEPOSITS3 – 2.00%
Abbey National Treasury Services PLC 1.39%, 04/08/05		76,182		76,180
Banco Bilbao Vizcaya Argentaria SA 2.50% - 2.51%, 03/21/05 - 03/22/05		163,247		163,247
BNP Paribas (New York) 2.78% - 3.03%, 07/11/05 - 08/23/05		152,364		152,363
Credit Suisse First Boston 2.55%, 03/22/05		108,831		108,831
Deutsche Bank AG 2.51%, 03/01/05		181,241		181,241
First Tennessee Bank 2.53%, 03/14/05 - 03/21/05		272,078		272,078
HBOS Treasury Services PLC 1.24% - 2.50%, 03/22/05 - 04/01/05		178,483		178,483
Key Bank N.A. 2.51% - 2.55%, 03/01/05 - 03/18/05		652,987		652,987
Natexis Banques 2.50% - 2.98%, 03/22/05 - 08/18/05		190,455		190,454
Norddeutsche Landesbank 2.11%, 06/07/05		108,831		108,825
Royal Bank of Scotland 2.54%, 03/22/05		27,208		27,208
Societe Generale 2.53%, 03/22/05		10,883		10,883
Toronto-Dominion Bank 1.22% - 2.66%, 03/23/05 - 11/09/05		435,325		435,307
UBS AG 2.67%, 11/09/05		43,532		43,530
Washington Mutual Bank 2.55%, 03/21/05 - 03/22/05		500,624		500,624
Wells Fargo Bank N.A. 2.52% - 2.53%, 03/17/05 - 03/22/05		669,312		669,310
				3,771,551
U.S. GOVERNMENT AGENCY NOTES3 – 0.16%
Federal Home Loan Mortgage Corp. 1.63% - 2.06%, 04/15/05 - 05/31/05		130,438		130,185

SCHEDULES OF INVESTMENTS 17

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI AUSTRIA INDEX FUND

February 28, 2005

Security	Principal		Value
Federal National Mortgage Association 2.33%, 07/22/05	$	163,247	$	161,739
				291,924
TOTAL SHORT-TERM INVESTMENTS (Cost: $22,634,917)				22,634,917
TOTAL INVESTMENTS IN SECURITIES – 111.91% (Cost: $171,319,546)				211,188,659
Other Assets, Less Liabilities – (11.91%)				(22,468,537	)
NET ASSETS – 100.00%			$	188,720,122

¹ Non-income earning security.

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

³ All or a portion of these securities represent an investment of securities lending collateral. See Note 5.

⁴ All or a portion of this security is exempt from registration pursuant to Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

⁵ The Fund’s investment adviser is an affiliate of the issuer. See Note 2.

⁶ Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 2.95% to 7.85% and maturity dates ranging from 8/1/08 to 1/1/44.

See notes to financial statements.

18 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI BELGIUM INDEX FUND

February 28, 2005

Security	Shares or Principal		Value
COMMON STOCKS – 99.88%
BANKS – 41.65%
Dexia Group1		304,214	$	7,244,144
Fortis1		476,338		13,442,002
KBC Groupe1		33,670		2,840,169
				23,526,315
BEVERAGES – 4.83%
InBev1		71,262		2,730,802
				2,730,802
CHEMICALS – 4.87%
Solvay SA1		23,606		2,752,641
				2,752,641
DIVERSIFIED FINANCIAL SERVICES – 1.40%
Algemene Maatschappij voor
Nijverheidskredit NV1		6,956		788,502
				788,502
ELECTRIC – 11.16%
Electrabel SA1		14,208		6,302,674
				6,302,674
ELECTRICAL COMPONENTS & EQUIPMENT – 1.22%
Bekaert NV		8,140		692,036
				692,036
ELECTRONICS – 0.90%
Barco NV		5,994		509,988
				509,988
FOOD – 7.59%
Colruyt NV		9,842		1,695,678
Delhaize Group1		32,782		2,589,035
				4,284,713
HOLDING COMPANIES – DIVERSIFIED – 4.99%
Groupe Bruxelles Lambert SA		30,414		2,817,828
				2,817,828
MANUFACTURING – 3.00%
AGFA-Gevaert NV		47,952		1,696,885
				1,696,885
MINING – 2.41%
Umicore1		13,246		1,359,095
				1,359,095
PHARMACEUTICALS – 4.85%
Omega Pharma SA1		10,582		535,434
UCB SA		43,734		2,203,010
				2,738,444
REAL ESTATE INVESTMENT TRUSTS – 1.94%
Cofinimmo1		6,660		1,098,831
				1,098,831
RETAIL – 0.72%
SA D’Ieteren NV1		1,776		404,761
				404,761
TELECOMMUNICATIONS – 7.10%
Belgacom SA2		65,351		2,754,111
Mobistar SA2		13,986		1,255,876
				4,009,987
TRANSPORTATION – 1.25%
Compagnie Maritime Belge SA		9,620		372,730
Euronav SA		9,990		331,506
				704,236
TOTAL COMMON STOCKS (Cost: $45,619,173)				56,417,738
SHORT-TERM INVESTMENTS – 46.76%
COMMERCIAL PAPER3 – 11.00%
Amstel Funding Corp. 2.95%, 08/19/05	$	52,947		52,205
Amsterdam Funding Corp. 2.53%, 03/01/05 - 03/10/05		140,118		140,062
ANZ National Bank Ltd. 2.94%, 08/15/05		63,690		62,823
Barton Capital Corp. 2.53% – 2.54%, 03/07/05 - 03/17/05		281,836		281,608
Blue Ridge Asset Funding Corp. 2.53%, 03/23/05		140,118		139,901
Bryant Park Funding LLC 2.50%, 03/16/05		12,738		12,725
Chariot Funding LLC 2.54%, 03/21/05		127,380		127,200
Chesham Finance LLC 2.55%, 03/04/05		50,952		50,941

SCHEDULES OF INVESTMENTS 19

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI BELGIUM INDEX FUND

February 28, 2005

Security	Principal		Value
Corporate Asset Funding 2.55%, 03/24/05	$	63,690	$	63,586
CRC Funding LLC 2.53%, 03/11/05		31,845		31,823
Delaware Funding Corp. 2.53% - 2.54%, 03/09/05 - 03/22/05		236,215		235,953
DEPFA Bank PLC 2.28%, 05/03/05		63,690		63,436
Edison Asset Securitization 2.26% - 2.53%, 03/07/05 - 05/04/05		413,984		413,237
Fairway Finance LLC 2.53% - 2.54%, 03/09/05 - 03/22/05		121,434		121,303
Falcon Asset Securitization Corp. 2.53% - 2.54%, 03/14/05 - 03/18/05		491,127		490,554
Ford Credit Auto Receivables 2.28% - 2.55%, 03/15/05 - 04/27/05		295,776		295,232
Ford Credit Floorplan Motown 2.54% - 2.56%, 03/04/05 - 03/18/05		159,225		159,159
Fortis Funding LLC 2.35%, 05/09/05		178,331		177,528
General Electric Capital Corp. 2.53% - 2.74%, 03/08/05 - 07/07/05		280,235		279,508
Giro Funding US Corp. 2.54%, 03/14/05 - 03/18/05		153,557		153,393
Grampian Funding LLC 2.49% - 3.00%, 03/23/05 - 08/22/05		375,770		371,148
Jupiter Securitization Corp. 2.53%, 03/03/05 - 03/22/05		581,144		580,618
Kitty Hawk Funding Corp. 2.54%, 03/15/05		191,069		190,881
Liberty Street Funding Corp. 2.53% - 2.54%, 03/14/05 - 03/16/05		70,059		69,991
Moat Funding LLC 2.50%, 03/23/05		25,476		25,438
Nordea North America Inc. 2.74%, 07/11/05		63,690		63,050
Park Avenue Receivables Corp. 2.53%, 03/10/05 - 03/11/05		198,970		198,834
Park Granada LLC 2.55% - 2.58%, 03/18/05 - 03/21/05		89,166		89,052
Preferred Receivables Funding Corp. 2.53% - 2.54%, 03/14/05 - 03/21/05		270,655		270,281
Ranger Funding Co. LLC 2.54%, 03/04/05		37,879		37,871
Santander Central Hispano 2.75%, 07/08/05		159,225		157,658
Scaldis Capital LLC 2.75%, 07/08/05		31,881		31,566
Ticonderoga Master Funding Ltd. 2.54% - 2.57%, 03/21/05 - 03/24/05		216,021		215,705
Tulip Funding Corp. 2.54% - 2.55%, 03/01/05		212,630		212,630
UBS Finance (Delaware) 2.62%, 03/01/05		254,759		254,759
Windmill Funding Corp. 2.55%, 03/08/05		44,583		44,561
Yorktown Capital LLC 2.53%, 03/17/05		44,583		44,533
				6,210,753
FLOATING RATE NOTES3 – 17.25%
Allstate Life Global Funding II 2.58%, 01/10/064		58,595		58,597
American Express Centurion Bank 2.58%, 01/24/06		191,069		191,069
American Express Credit Corp. 2.68%, 10/26/05		254,759		254,843
Bank of Nova Scotia 2.52% - 2.57%, 09/26/05 - 01/03/06		82,797		82,776

20 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI BELGIUM INDEX FUND

February 28, 2005

Security	Principal		Value
Beta Finance Inc. 2.53% - 2.79%, 03/15/05 - 10/27/05	$	477,674	$	477,712
Canadian Imperial Bank of Commerce 2.52% - 2.61%, 09/13/05 - 12/14/05		433,091		433,006
CC USA Inc. 2.53% - 2.66%, 05/04/05 - 07/29/05		254,759		254,739
Commodore CDO Ltd. 2.55%, 12/12/05		31,845		31,845
Den Danske Bank NY 2.52% - 2.60%, 08/12/05 - 10/17/05		382,139		382,080
DEPFA Bank PLC 2.47%, 12/15/05		127,380		127,380
Dorada Finance Inc. 2.66%, 07/29/05		105,725		105,712
Fairway Finance LLC 2.55%, 03/14/05 - 06/20/05		191,069		191,068
Fifth Third Bancorp 2.57%, 02/23/064		254,759		254,759
Five Finance Inc. 2.62% - 2.64%, 04/29/05 - 02/27/06		165,594		165,600
General Electric Capital Corp. 2.69%, 03/09/06		57,321		57,400
General Electric Commercial Equipment Financing LLC 2.56%, 11/20/05		54,401		54,401
Hartford Life Global Funding Trust 2.58%, 02/15/06		127,380		127,380
HBOS Treasury Services PLC 2.55% - 2.56%, 01/10/06 - 01/24/06		382,139		382,140
K2 USA LLC 2.55% - 2.64%, 06/10/05 - 02/15/06		573,208		573,215
Leafs LLC 2.60%, 01/20/06 - 02/21/064		133,749		133,749
Links Finance LLC 2.54% - 2.77%, 04/15/05 - 02/06/06		522,256		522,389
Lothian Mortgages PLC 2.61%, 01/24/06		254,759		254,759
MetLife Funding Inc. 2.58%, 03/06/06		191,069		191,069
National City Bank (Ohio) 2.52% - 2.58%, 06/10/05 - 08/09/05		318,449		318,426
Nationwide Building Society 2.58% - 2.64%, 01/06/06 - 01/27/064		471,305		471,404
Norddeutsche Landesbank 2.63%, 07/27/05		127,380		127,361
Northern Rock PLC 2.60% - 2.62%, 10/25/05 - 02/03/064		382,139		382,139
Permanent Financing PLC 2.54% - 2.57%, 03/10/05 - 09/12/05		343,925		343,926
Sedna Finance Inc. 2.56%, 01/10/06 - 01/17/06		70,059		70,044
Sigma Finance Inc. 2.54% - 2.79%, 08/17/05 - 01/09/06		649,636		649,666
Tango Finance Corp. 2.55% - 2.74%, 04/07/05 - 09/15/05		391,947		391,931
Wachovia Asset Securitization Inc. 2.64%, 03/25/05		382,139		382,138
Wells Fargo & Co. 2.56%, 03/15/064		63,690		63,699
WhistleJacket Capital LLC 2.45% - 2.57%, 06/15/05 - 01/17/06		445,829		445,789
White Pine Finance LLC 2.54% - 2.80%, 03/29/05 - 01/13/06		696,767		696,718
Winston Funding Ltd. 2.75%, 04/25/05		90,949		90,949
				9,741,878

SCHEDULES OF INVESTMENTS 21

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI BELGIUM INDEX FUND

February 28, 2005

Security	Shares or Principal		Value
MEDIUM-TERM NOTES3 – 0.23%
CC USA Inc. 1.29%, 04/15/054	$	127,380	$	127,378
				127,378
MONEY MARKET FUNDS3 – 1.08%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares5		536,315		536,315
BlackRock Temp Cash Money Market Fund		23,755		23,755
Short-Term Investment Co.— Prime Money Market Portfolio, Institutional Shares		48,064		48,064
				608,134
REPURCHASE AGREEMENTS3 – 8.79%
Bank of America N.A. Repurchase Agreements, dated 2/28/05, due 3/1/05, with a total maturity value of $2,866,251 and effective yields of 2.62% - 2.63%.6	$	2,866,041		2,866,041
Merrill Lynch Government Securities Inc. Repurchase Agreement, dated 2/28/05, due 3/1/05, with a maturity value of $2,101,918 and an effective yield of 2.63%.6		2,101,764		2,101,764
				4,967,805
TIME DEPOSITS3 – 7.81%
Abbey National Treasury Services PLC 1.39%, 04/08/05		89,166		89,155
Banco Bilbao Vizcaya Argentaria SA 2.50% - 2.51%, 03/21/05 - 03/22/05		191,069		191,071
BNP Paribas (New York) 2.78% - 3.03%, 07/11/05 - 08/23/05		178,331		178,332
Credit Suisse First Boston 2.55%, 03/22/05		127,380		127,380
Deutsche Bank AG 2.51%, 03/01/05		212,130		212,130
First Tennessee Bank 2.53%, 03/14/05 - 03/21/05		318,449		318,449
HBOS Treasury Services PLC 1.24% - 2.50%, 03/22/05 - 04/01/05		208,903		208,902
Key Bank N.A. 2.51% - 2.55%, 03/01/05 - 03/18/05		764,278		764,278
Natexis Banques 2.50% - 2.98%, 03/22/05 - 08/18/05		222,914		222,915
Norddeutsche Landesbank 2.11%, 06/07/05		127,380		127,373
Royal Bank of Scotland 2.54%, 03/22/05		31,845		31,845
Societe Generale 2.53%, 03/22/05		12,738		12,738
Toronto-Dominion Bank 1.22% - 2.66%, 03/23/05 - 11/09/05		509,519		509,497
UBS AG 2.67%, 11/09/05		50,952		50,948
Washington Mutual Bank 2.55%, 03/21/05 - 03/22/05		585,946		585,946
Wells Fargo Bank N.A. 2.52% - 2.53%, 03/17/05 - 03/22/05		783,385		783,383
				4,414,342
U.S. GOVERNMENT AGENCY NOTES3 – 0.60%
Federal Home Loan Mortgage Corp. 1.63% - 2.06%, 04/15/05 - 05/31/05		152,668		152,373
Federal National Mortgage Association 2.33%, 07/22/05		191,069		189,305
				341,678
TOTAL SHORT-TERM INVESTMENTS (Cost: $26,411,968)				26,411,968
TOTAL INVESTMENTS IN SECURITIES – 146.64% (Cost: $72,031,141)				82,829,706
Other Assets, Less Liabilities – (46.64%)				(26,344,263	)
NET ASSETS – 100.00%			$	56,485,443

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

² Non-income earning security.

³ All or a portion of these securities represent an investment of securities lending collateral. See Note 5.

⁴ All or a portion of this security is exempt from registration pursuant to Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

⁵ The Fund’s investment adviser is an affiliate of the issuer. See Note 2.

⁶ Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 2.95% to 7.85% and maturity dates ranging from 8/1/08 to 1/1/44.

See notes to financial statements.

22 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI EMU INDEX FUND

February 28, 2005

Security	Shares	Value
COMMON STOCKS – 98.49%
AUSTRIA – 1.17%
Bank Austria Creditanstalt	6,028	$	588,093
Boehler-Uddeholm AG	1,507		228,036
Erste Bank der Oesterreichischen Sparkassen AG	19,865		1,086,354
Flughafen Wien AG	274		21,349
Immofinanz Immobilien Anlage AG1	44,662		421,496
Mayr-Melnhof Karton AG	1,233		219,717
Oesterreichische Elektrizitaetswirtschafts AG Class A	1,064		253,508
OMV AG	2,740		951,423
RHI AG1,2	3,973		123,981
Telekom Austria AG	53,978		1,074,715
Voest-Alpine AG2	4,795		400,463
Wienerberger Baustoffindustrie AG2	11,645		580,410
			5,949,545
BELGIUM – 4.02%
AGFA-Gevaert NV	14,933		528,436
Barco NV	1,781		151,533
Bekaert NV	2,740		232,946
Belgacom SA1	25,071		1,056,576
Cofinimmo2	1,043		172,084
Colruyt NV2	3,014		519,282
Compagnie Maritime Belge SA	3,160		122,435
Delhaize Group2	11,782		930,511
Dexia Group2	102,750		2,446,751
Electrabel SA2	4,521		2,005,517
Euronav SA	3,780		125,435
Fortis2	188,238		5,311,975
Groupe Bruxelles Lambert SA	11,508		1,066,205
InBev	29,181		1,118,233
KBC Groupe2	17,673		1,490,772
Mobistar SA1,2	4,670		419,344
Omega Pharma SA2	3,562		180,232
SA D’Ieteren NV2	548		124,893
Solvay SA2	10,686		1,246,070
UCB SA	13,974		703,911
Umicore	4,247		435,760
			20,388,901
FINLAND – 4.17%
Amer Group Ltd2	7,809		146,150
Elisa OYJ Class A1	22,057		395,244
Fortum OYJ2	55,348		1,063,790
KCI Konecranes OYJ2	2,877		130,412
Kesko OYJ Class B	10,001		260,187
Kone OYJ Class B1,2	6,713		575,262
Metso OYJ2	19,317		362,812
Nokia OYJ	715,003		11,654,447
Nokian Renkaat OYJ	1,644		291,973
Orion-Yhtyma OYJ Class B	9,453		150,569
Outokumpu OYJ2	16,303		297,547
Pohjola Group PLC Class D2	9,453		119,703
Rautaruukki OYJ2	17,459		243,329
Sampo OYJ Class A	61,513		864,666
Stora Enso OYJ Class R	104,120		1,589,342
TietoEnator OYJ2	14,111		512,647
UPM-Kymmene OYJ2	86,036		1,923,126
Uponor OYJ2	14,522		308,412
Wartsila OYJ Class B2	10,059		262,363
			21,151,981
FRANCE – 27.46%
Accor SA2	34,113		1,602,455
Air France – KLM2	17,947		341,607
Alcatel SA Class A1,2	194,540		2,543,493
ALSTOM1	713,927		663,342
Arcelor2	77,542		1,930,880
Atos Origin SA1	9,179		670,715
Autoroutes du Sud de la France2	12,604		662,337
AXA2	225,639		6,082,884
BNP Paribas SA2	127,410		9,267,648
Bouygues SA2	30,140		1,309,807
Business Objects SA1,2	11,234		313,140
Cap Gemini SA1	20,687		776,263
Carrefour SA	91,927		4,825,863
CNP Assurances2	5,480		392,789
Compagnie de Saint-Gobain2	50,142		3,109,496
Compagnie Generale des Etablissements Michelin Class B2	23,153		1,656,462
Credit Agricole SA2	105,901		3,150,122
Dassault Systemes SA2	8,631		409,107

SCHEDULES OF INVESTMENTS 23

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MCSI EMU INDEX FUND

February 28, 2005

Security	Shares	Value
Essilor International SA	14,933	$	1,050,530
Etablissements Economiques du Casino Guichard-Perrachon SA2	5,343		445,380
European Aeronautic Defense and Space Co.2	39,593		1,247,626
France Telecom	236,051		7,143,748
Gecina SA	4,521		486,077
Groupe Danone	38,634		3,858,883
Hermes International2	1,233		269,715
Imerys SA2	5,343		436,160
Klepierre2	3,588		336,949
Lafarge SA2	27,674		2,890,894
Lagardere S.C.A.2	19,865		1,558,337
L’Air Liquide SA2	17,673		3,183,285
L’Oreal SA2	48,498		3,807,711
LVMH Moet Hennessy Louis Vuitton SA2	38,634		2,869,163
Pernod Ricard SA2	8,220		1,178,368
Pinault-Printemps-Redoute SA2	10,960		1,225,648
PSA Peugeot Citroen SA2	27,263		1,790,560
Publicis Groupe2	19,728		604,634
Renault SA2	29,592		2,686,680
Sagem SA2	26,304		621,480
Sanofi-Aventis2	155,769		12,488,303
Schneider Electric SA	36,031		2,883,893
Societe BIC SA2	4,795		269,097
Societe Generale Class A2	53,704		5,688,464
Societe Television Francaise 12	19,454		633,162
Sodexho Alliance SA2	17,810		572,327
STMicroelectronics NV	94,393		1,688,944
Suez SA2	127,547		3,462,175
Technip-Coflexip SA2	2,877		512,099
Thales SA2	13,289		603,259
Thomson2	36,579		989,027
Total SA2	91,379		21,747,641
Unibail Holding2	6,850		850,134
Valeo SA2	11,782		566,282
Veolia Environnement2	48,224		1,681,546
Vinci SA2	11,508		1,695,541
Vivendi Universal SA1	162,619		5,145,920
Zodiac SA2	6,819		328,468
			139,206,520
GERMANY – 19.11%
Adidas-Salomon AG2	7,124		1,073,072
Allianz AG2	49,183		6,242,366
ALTANA AG2	10,960		676,325
BASF AG2	82,748		6,210,102
Bayer AG2	106,038		3,715,788
Bayerische Hypo-und Vereinsbank AG1	102,750		2,514,943
Beiersdorf AG2	2,814		322,681
Celesio AG2	4,658		353,038
Commerzbank AG1,2	73,843		1,656,462
Continental AG2	21,372		1,586,062
DaimlerChrysler AG	137,959		6,407,365
Deutsche Bank AG2	78,501		6,908,347
Deutsche Boerse AG	17,399		1,295,605
Deutsche Lufthansa AG1,2	35,894		516,936
Deutsche Post AG	78,638		1,894,500
Deutsche Telekom AG1,2	435,112		9,136,776
Douglas Holding AG2	6,439		250,336
E.ON AG2	99,462		8,970,819
EPCOS AG1,2	8,494		121,314
Fresenius Medical Care AG2	5,617		504,454
HeidelbergerCement AG2	10,452		691,315
Hypo Real Estate Holding AG1	21,509		882,194
Infineon Technologies AG1	103,435		1,081,880
KarstadtQuelle AG2	12,193		141,937
Linde AG2	13,974		964,516
MAN AG2	23,016		1,067,733
Merck KGaA2	7,809		602,741
METRO AG2	23,564		1,326,173
MLP AG2	13,289		224,899
Muenchener Rueckversicherungs-Gesellschaft AG2	29,455		3,647,759
Puma AG2	2,603		614,972
RWE AG2	66,993		4,077,127
SAP AG2	32,743		5,332,282
Schering AG2	26,578		1,947,363
Siemens AG2	127,821		10,049,152
Suedzucker AG2	8,494		181,520
ThyssenKrupp AG2	50,279		1,157,234
TUI AG2	26,578		694,277
Volkswagen AG2	36,579		1,813,460
			96,855,825

24 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMU INDEX FUND

February 28, 2005

Security	Shares	Value
GREECE – 1.27%
Hellenic Telecommunications Organization SA ADR	241,257	$	2,291,942
National Bank of Greece SA ADR2	543,387		4,156,911
			6,448,853
IRELAND – 2.56%
Allied Irish Banks PLC	139,192		3,002,293
Bank of Ireland	156,043		2,624,257
CRH PLC	86,995		2,442,250
DCC PLC	13,700		327,325
DEPFA Bank PLC2	58,362		959,814
Eircom Group PLC	72,199		206,042
Elan Corp. PLC1	63,157		544,066
Fyffes PLC	53,567		161,402
Grafton Group PLC1	31,647		430,568
Greencore Group PLC	33,017		143,308
Independent News & Media PLC	98,777		305,490
Irish Life & Permanent PLC	43,703		890,441
Kerry Group PLC Class A	21,372		523,392
Kingspan Group PLC	20,413		224,890
Ryanair Holdings PLC1	21,760		176,476
Waterford Wedgewood PLC1	402,722		27,797
Waterford Wedgewood PLC Restricted1	9,511		656
			12,990,467
ITALY – 11.27%
Alleanza Assicurazioni SpA2	75,487		1,028,028
Arnoldo Mondadori Editore SpA2	17,810		199,522
Assicurazioni Generali SpA2	152,481		5,116,562
Autogrill SpA1,2	24,797		389,705
Autostrade SpA	48,361		1,346,106
Banca Antonveneta SpA1,2	37,675		1,110,676
Banca Fideuram SpA2	54,252		285,885
Banca Intesa SpA2	523,477		2,570,898
Banca Monte dei Paschi di Siena SpA2	179,396		611,972
Banca Nazionale del Lavoro SpA1,2	272,904		765,230
Banca Popolare di Milano Scrl2	62,883		547,548
Banca Popolare di Verona e Novara Scrl2	59,595		1,170,731
Banche Popolari Unite Scrl	52,775		1,088,591
Benetton Group SpA2	6,302		77,878
Bulgari SpA2	19,317		240,507
Capitalia SpA2	238,946		1,221,085
Edison SpA1,2	142,754		298,059
Enel SpA2	585,812		5,649,101
ENI SpA2	419,905		10,980,010
Fiat SpA1,2	90,283		677,080
Fineco SpA1	31,377		280,293
Finmeccanica SpA2	1,051,338		1,082,903
Gruppo Editoriale L’Espresso SpA2	28,085		181,547
Italcementi SpA2	14,659		259,954
Luxottica Group SpA2	22,605		479,176
Mediaset SpA2	96,037		1,356,331
Mediobanca SpA2	76,583		1,298,102
Mediolanum SpA2	47,206		347,443
Pirelli SpA2	425,986		553,841
Riunione Adriatica di Sicurta SpA2	46,854		1,089,598
Sanpaolo IMI SpA2	174,949		2,566,015
Seat Pagine Gialle SpA1,2	722,538		323,204
Snam Rete Gas SpA	126,451		740,615
Telecom Italia Media SpA1,2	240,321		122,971
Telecom Italia Mobile SpA2	193,307		1,330,399
Telecom Italia SpA2	1,292,458		5,039,411
Terna SpA Rights1,2	158,080		452,703
Tiscali SpA1,2	33,107		116,014
UniCredito Italiano SpA2	706,783		4,134,889
			57,130,583
NETHERLANDS – 14.54%
ABN AMRO Holding NV2	257,423		7,103,744
AEGON NV	221,529		3,205,107
Akzo Nobel NV	43,018		1,944,253
ASML Holding NV1,2	75,761		1,404,842
Corio NV	5,069		282,590
DSM NV	11,508		819,511
Euronext NV	15,892		598,022
Getronics NV1,2	78,522		207,410
Hagemeyer NV1,2	84,529		243,473
Heineken NV	40,004		1,368,900
IHC Caland NV	4,795		318,869
ING Groep NV	298,660		9,216,913
Koninklijke Ahold NV1	251,943		2,284,065
Koninklijke KPN NV	345,788		3,355,156
Koninklijke Numico NV CVA1,2	24,426		988,866
Koninklijke Philips Electronics NV	209,062		5,796,943

SCHEDULES OF INVESTMENTS 25

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMU INDEX FUND

February 28, 2005

Security	Shares	Value
Oce NV2	10,001	$	165,935
QIAGEN NV1	21,646		274,963
Randstad Holdings NV	6,987		311,427
Reed Elsevier NV	106,997		1,610,535
Rodamco Europe NV	6,165		497,942
Royal Dutch Petroleum Co.2	333,458		21,068,497
TPG NV	61,102		1,712,911
Unilever NV CVA	91,790		6,128,424
Vedior NV	26,578		499,541
VNU NV	37,812		1,186,486
Wereldhave NV	2,466		260,059
Wolters Kluwer NV CVA	44,662		865,519
			73,720,903
PORTUGAL – 1.10%
Banco BPI SA Registered	67,881		282,019
Banco Comercial Portugues SA Class R2	348,528		976,125
Banco Espirito Santo SA	22,215		396,306
Brisa-Auto Estradas de Portugal SA2	71,240		635,446
CIMPOR-Cimentos de Portugal SGPS SA	50,279		290,310
Energias de Portugal SA	339,623		996,265
Jeronimo Martins SGPS SA1	7,124		103,071
Portugal Telecom SGPS SA2	113,847		1,385,723
PT Multimedia-Servicos de Telecomunicacoes e Multimedia SGPS SA	8,357		219,635
Sonae SGPS SA	174,164		272,788
			5,557,688
SPAIN – 11.82%
Abertis Infraestructuras SA2	40,552		964,036
Acciona SA2	3,836		360,239
Acerinox SA2	31,373		545,523
Actividades de Construcciones y Servicios SA2	43,155		1,103,247
Altadis SA2	44,799		1,887,981
Amadeus Global Travel Distribution SA Class A	51,238		491,718
Antena 3 de Television SA1,2	3,484		268,220
Banco Bilbao Vizcaya Argentaria SA	517,723		8,981,699
Banco Popular Espanol SA	26,304		1,826,034
Banco Santander Central Hispano SA2	955,438		11,870,358
Cintra Concesiones de Infraestructuras de Transporte SA1	37,538		428,504
Corporacion Mapfre SA2	19,319		312,845
Endesa SA2	153,303		3,477,588
Fomento de Construcciones y Contratas SA	7,124		368,029
Gamesa Corporacion Tecnologica SA2	21,372		297,298
Gas Natural SDG SA2	25,071		744,096
Grupo Ferrovial SA2	10,412		622,469
Iberdrola SA	122,204		3,231,173
Iberia Lineas Aereas de Espana SA2	73,843		258,761
Indra Sistemas SA2	18,632		323,237
Industria de Diseno Textil SA2	35,757		1,106,815
Metrovacesa SA	7,398		384,934
NH Hoteles SA2	21,098		303,288
Promotora de Informaciones SA2	13,563		286,065
Repsol YPF SA2	149,878		4,090,218
Sacyr Vallehermoso SA	16,577		305,408
Sociedad General de Aguas de Barcelona SA1,2	91		1,933
Sociedad General de Aguas de Barcelona SA Class B	10,686		229,073
Sogecable SA1,2	6,439		260,079
Telefonica Publicidad e Informacion SA2	24,934		238,623
Telefonica SA	707,742		13,057,957
Union Fenosa SA2	35,483		1,022,034
Zeltia SA2	28,085		251,631
			59,901,113
TOTAL COMMON STOCKS (Cost: $408,362,311)			499,302,379
PREFERRED STOCKS – 1.29%
GERMANY– 0.62%
Fresenius Medical Care AG2	3,836		243,893
Henkel KGaA2	9,316		835,296
Porsche AG2	1,233		892,467
ProSiebenSat.1 Media AG2	12,193		243,251
RWE AG	5,891		308,085
Volkswagen AG	16,988		623,931
			3,146,923

26 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMU INDEX FUND

February 28, 2005

Security	Shares or Principal		Value
ITALY – 0.67%
Banca Intesa SpA RNC2	$	150,426	$	668,888
Telecom Italia SpA RNC2		864,470		2,736,678
				3,405,566
TOTAL PREFERRED STOCKS (Cost: $4,662,087)				6,552,489
SHORT-TERM INVESTMENTS – 35.17%
COMMERCIAL PAPER3 – 8.27%
Amstel Funding Corp. 2.95%, 08/19/05	$	357,233		352,227
Amsterdam Funding Corp. 2.53%, 03/01/05 - 03/10/05		945,379		944,998
ANZ National Bank Ltd. 2.94%, 08/15/05		429,718		423,867
Barton Capital Corp. 2.53% - 2.54%, 03/07/05 - 03/17/05		1,901,562		1,900,027
Blue Ridge Asset Funding Corp. 2.53%, 03/23/05		945,379		943,918
Bryant Park Funding LLC 2.50%, 03/16/05		85,944		85,854
Chariot Funding LLC 2.54%, 03/21/05		859,436		858,223
Chesham Finance LLC 2.55%, 03/04/05		343,774		343,701
Corporate Asset Funding 2.55%, 03/24/05		429,718		429,018
CRC Funding LLC 2.53%, 03/11/05		214,859		214,708
Delaware Funding Corp. 2.53% - 2.54%, 03/09/05 - 03/22/05		1,593,755		1,591,987
DEPFA Bank PLC 2.28%, 05/03/05		429,718		428,007
Edison Asset Securitization 2.26% - 2.53%, 03/07/05 - 05/04/05		2,793,166		2,788,125
Fairway Finance LLC 2.53% - 2.54%, 03/09/05 - 03/22/05		819,317		818,429
Falcon Asset Securitization Corp. 2.53% - 2.54%, 03/14/05 - 03/18/05		3,313,658		3,309,788
Ford Credit Auto Receivables 2.28% - 2.55%, 03/15/05 - 04/27/05		1,995,610		1,991,943
Ford Credit Floorplan Motown 2.54% - 2.56%, 03/04/05 - 03/18/05		1,074,295		1,073,854
Fortis Funding LLC 2.35%, 05/09/05		1,203,210		1,197,791
General Electric Capital Corp. 2.53% - 2.74%, 03/08/05 - 07/07/05		1,890,759		1,885,854
Giro Funding US Corp. 2.54%, 03/14/05 - 03/18/05		1,036,058		1,034,954
Grampian Funding LLC 2.49% - 3.00%, 03/23/05 - 08/22/05		2,535,336		2,504,150
Jupiter Securitization Corp. 2.53%, 03/03/05 - 03/22/05		3,921,004		3,917,448
Kitty Hawk Funding Corp. 2.54%, 03/15/05		1,289,154		1,287,883
Liberty Street Funding Corp. 2.53% - 2.54%, 03/14/05 - 03/16/05		472,690		472,227
Moat Funding LLC 2.50%, 03/23/05		171,887		171,625
Nordea North America Inc. 2.74%, 07/11/05		429,718		425,401
Park Avenue Receivables Corp. 2.53%, 03/10/05 - 03/11/05		1,342,456		1,341,546
Park Granada LLC 2.55% - 2.58%, 03/18/05 - 03/21/05		601,605		600,838
Preferred Receivables Funding Corp. 2.53% - 2.54%, 03/14/05 - 03/21/05		1,826,121		1,823,596
Ranger Funding Co. LLC 2.54%, 03/04/05		255,570		255,516

SCHEDULES OF INVESTMENTS 27

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMU INDEX FUND

February 28, 2005

Security	Principal		Value
Santander Central Hispano 2.75%, 07/08/05	$	1,074,295	$	1,063,728
Scaldis Capital LLC 2.75%, 07/08/05		215,100		212,980
Ticonderoga Master Funding Ltd. 2.54% - 2.57%, 03/21/05 - 03/24/05		1,457,500		1,455,365
Tulip Funding Corp. 2.54% - 2.55%, 03/01/05		1,434,622		1,434,623
UBS Finance (Delaware) 2.62%, 03/01/05		1,718,872		1,718,872
Windmill Funding Corp. 2.55%, 03/08/05		300,803		300,653
Yorktown Capital LLC 2.53%, 03/17/05		300,803		300,464
				41,904,188
FLOATING RATE NOTES3 – 12.97%
Allstate Life Global Funding II 2.58%, 01/10/064		395,340		395,354
American Express Centurion Bank 2.58%, 01/24/06		1,289,154		1,289,154
American Express Credit Corp. 2.68%, 10/26/05		1,718,872		1,719,438
Bank of Nova Scotia 2.52% - 2.57%, 09/26/05 - 01/03/06		558,633		558,489
Beta Finance Inc. 2.53% - 2.79%, 03/15/05 - 10/27/05		3,222,884		3,223,139
Canadian Imperial Bank of Commerce 2.52% - 2.61%, 09/13/05 - 12/14/05		2,922,082		2,921,509
CC USA Inc. 2.53% - 2.66%, 05/04/05 - 07/29/05		1,718,872		1,718,736
Commodore CDO Ltd. 2.55%, 12/12/05		214,859		214,859
Den Danske Bank NY 2.52% - 2.60%, 08/12/05 - 10/17/05		2,578,307		2,577,904
DEPFA Bank PLC 2.47%, 12/15/05		859,436		859,436
Dorada Finance Inc. 2.66%, 07/29/05		713,332		713,244
Fairway Finance LLC 2.55%, 03/14/05 - 06/20/05		1,289,154		1,289,141
Fifth Third Bancorp 2.57%, 02/23/064		1,718,872		1,718,872
Five Finance Inc. 2.62% - 2.64%, 04/29/05 - 02/27/06		1,117,267		1,117,312
General Electric Capital Corp. 2.69%, 03/09/06		386,746		387,284
General Electric Commercial Equipment Financing LLC 2.56%, 11/20/05		367,047		367,047
Hartford Life Global Funding Trust 2.58%, 02/15/06		859,436		859,436
HBOS Treasury Services PLC 2.55% - 2.56%, 01/10/06 - 01/24/06		2,578,307		2,578,308
K2 USA LLC 2.55% - 2.64%, 06/10/05 - 02/15/06		3,867,461		3,867,506
Leafs LLC 2.60%, 01/20/06 - 02/21/064		902,408		902,408
Links Finance LLC 2.54% - 2.77%, 04/15/05 - 02/06/06		3,523,687		3,524,587
Lothian Mortgages PLC 2.61%, 01/24/06		1,718,872		1,718,872
MetLife Funding Inc. 2.58%, 03/06/06		1,289,154		1,289,154
National City Bank (Ohio) 2.52% - 2.58%, 06/10/05 - 08/09/05		2,148,589		2,148,432
Nationwide Building Society 2.58% - 2.64%, 01/06/06 - 01/27/064		3,179,912		3,180,583
Norddeutsche Landesbank 2.63%, 07/27/05		859,436		859,313

28 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMU INDEX FUND

February 28, 2005

Security	Shares or Principal		Value
Northern Rock PLC 2.60% - 2.62%, 10/25/05 - 02/03/064	$	2,578,307	$	2,578,308
Permanent Financing PLC 2.54% - 2.57%, 03/10/05 - 09/12/05		2,320,477		2,320,478
Sedna Finance Inc. 2.56%, 01/10/06 - 01/17/06		472,690		472,592
Sigma Finance Inc. 2.54% - 2.79%, 08/17/05 - 01/09/06		4,383,123		4,383,334
Tango Finance Corp. 2.55% - 2.74%, 04/07/05 - 09/15/05		2,644,484		2,644,374
Wachovia Asset Securitization Inc. 2.64%, 03/25/05		2,578,307		2,578,308
Wells Fargo & Co. 2.56%, 03/15/064		429,718		429,780
WhistleJacket Capital LLC 2.45% - 2.57%, 06/15/05 - 01/17/06		3,008,025		3,007,764
White Pine Finance LLC 2.54% - 2.80%, 03/29/05 - 01/13/06		4,701,114		4,700,766
Winston Funding Ltd. 2.75%, 04/25/05		613,637		613,637
				65,728,858
MEDIUM-TERM NOTES3 – 0.17%
CC USA Inc. 1.29%, 04/15/054		859,436		859,426
				859,426
MONEY MARKET FUNDS3 – 0.83%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares5		3,717,900		3,717,900
BlackRock Temp Cash Money Market Fund		160,278		160,278
Short-Term Investment Co.— Prime Money Market Portfolio, Institutional Shares		324,287		324,287
				4,202,465
REPURCHASE AGREEMENTS3 – 6.61%
Bank of America N.A. Repurchase Agreements, dated 2/28/05, due 3/1/05, with a total maturity value of $19,338,718 and effective yields of 2.62% - 2.63%.6		19,337,305		19,337,305
Merrill Lynch Government Securities Inc. Repurchase Agreement, dated 2/28/05, due 3/1/05, with a maturity value of $14,181,727 and an effective yield of 2.63%.6		14,180,691		14,180,691
				33,517,996
TIME DEPOSITS3 – 5.87%
Abbey National Treasury Services PLC 1.39%, 04/08/05		601,605		601,581
Banco Bilbao Vizcaya Argentaria SA 2.50% - 2.51%, 03/21/05 - 03/22/05		1,289,154		1,289,156
BNP Paribas (New York) 2.78% - 3.03%, 07/11/05 - 08/23/05		1,203,210		1,203,210
Credit Suisse First Boston 2.55%, 03/22/05		859,436		859,436
Deutsche Bank AG 2.51%, 03/01/05		1,431,250		1,431,250
First Tennessee Bank 2.53%, 03/14/05 - 03/21/05		2,148,589		2,148,590
HBOS Treasury Services PLC 1.24% - 2.50%, 03/22/05 - 04/01/05		1,409,475		1,409,470
Key Bank N.A. 2.51% - 2.55%, 03/01/05 - 03/18/05		5,156,615		5,156,615
Natexis Banques 2.50% - 2.98%, 03/22/05 - 08/18/05		1,504,013		1,504,013
Norddeutsche Landesbank 2.11%, 06/07/05		859,436		859,390
Royal Bank of Scotland 2.54%, 03/22/05		214,859		214,859
Societe Generale 2.53%, 03/22/05		85,944		85,944

SCHEDULES OF INVESTMENTS 29

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMU INDEX FUND

February 28, 2005

Security	Principal		Value
Toronto-Dominion Bank 1.22% - 2.66%, 03/23/05 - 11/09/05	$	3,437,743	$	3,437,594
UBS AG 2.67%, 11/09/05		343,774		343,751
Washington Mutual Bank 2.55%, 03/21/05 - 03/22/05		3,953,404		3,953,404
Wells Fargo Bank N.A. 2.52% -2.53%, 03/17/05 -03/22/05		5,285,530		5,285,518
				29,783,781
U.S. GOVERNMENT AGENCY NOTES3 – 0.45%
Federal Home Loan Mortgage Corp. 1.63% - 2.06%, 04/15/05 - 05/31/05		1,030,060		1,028,066
Federal National Mortgage Association 2.33%, 07/22/05		1,289,154		1,277,248
				2,305,314
TOTAL SHORT-TERM INVESTMENTS (Cost: $178,302,028)				178,302,028
TOTAL INVESTMENTS IN SECURITIES – 134.95% (Cost: $591,326,426)				684,156,896
Other Assets, Less Liabilities – (34.95%)				(177,188,492	)
NET ASSETS – 100.00%			$	506,968,404

ADR – American Depositary Receipts

¹ Non-income earning security.

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

³ All or a portion of these securities represent an investment of securities lending collateral. See Note 5.

⁴ All or a portion of this security is exempt from registration pursuant to Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

⁵ The Fund’s investment adviser is an affiliate of the issuer. See Note 2.

⁶ Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 2.95% to 7.85% and maturity dates ranging from 8/1/08 to 1/1/44.

See notes to financial statements.

30 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI FRANCE INDEX FUND

February 28, 2005

Security	Shares	Value
COMMON STOCKS – 99.83%
ADVERTISING – 0.45%
Publicis Groupe1	7,931	$	243,073
			243,073
AEROSPACE & DEFENSE – 1.93%
European Aeronautic Defense and Space Co.1	14,960		471,409
Sagem SA1	10,340		244,301
Thales SA1	4,829		219,214
Zodiac SA1	2,365		113,921
			1,048,845
AIRLINES – 0.27%
Air France - KLM1	7,579		144,260
			144,260
APPAREL – 0.23%
Hermes International1	561		122,717
			122,717
AUTO MANUFACTURERS – 3.20%
PSA Peugeot Citroen SA1	10,527		691,385
Renault SA1	11,506		1,044,638
			1,736,023
AUTO PARTS & EQUIPMENT – 1.57%
Compagnie Generale des Etablissements Michelin Class B1	8,866		634,311
Valeo SA1	4,565		219,409
			853,720
BANKS – 12.92%
BNP Paribas SA1	49,324		3,587,768
Credit Agricole SA1	41,206		1,225,710
Societe Generale Class A1	20,680		2,190,478
			7,003,956
BEVERAGES – 0.83%
Pernod Ricard SA1	3,157		452,568
			452,568
BUILDING MATERIALS – 4.52%
Compagnie de Saint-Gobain1	19,195		1,190,355
Imerys SA1	1,969		160,734
Lafarge SA	10,538		1,100,825
			2,451,914
CHEMICALS – 2.24%
L’Air Liquide SA1	6,754		1,216,540
			1,216,540
COMMERCIAL SERVICES – 0.42%
Autoroutes du Sud de la France1	4,323		227,173
			227,173
COMPUTERS – 1.01%
Atos Origin SA2	3,509		256,405
Cap Gemini SA1,2	7,788		292,238
			548,643
COSMETICS & PERSONAL CARE – 2.74%
L’Oreal SA1	18,887		1,482,870
			1,482,870
DIVERSIFIED FINANCIAL SERVICES – 0.42%
Euronext NV	6,094		229,320
			229,320
ENGINEERING & CONSTRUCTION – 2.22%
Bouygues SA1	12,342		536,352
Vinci SA1	4,521		666,105
			1,202,457
FOOD – 6.50%
Carrefour SA1	35,552		1,866,362
Etablissements Economiques du Casino Guichard-Perrachon SA1	1,958		163,214
Groupe Danone1	14,982		1,496,448
			3,526,024
FOOD SERVICE – 0.36%
Sodexho Alliance SA1	6,016		193,325
			193,325
HAND & MACHINE TOOLS – 2.03%
Schneider Electric SA1	13,761		1,101,420
			1,101,420
HEALTH CARE - PRODUCTS – 0.79%
Essilor International SA1	6,072		427,163
			427,163
HOLDING COMPANIES - DIVERSIFIED – 2.08%
LVMH Moet Hennessy Louis Vuitton SA	15,213		1,129,797
			1,129,797

SCHEDULES OF INVESTMENTS 31

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI FRANCE INDEX FUND

February 28, 2005

Security	Shares or Principal		Value
HOME FURNISHINGS – 0.73%
Thomson1		14,707	$	397,650
				397,650
HOUSEHOLD PRODUCTS & WARES – 0.20%
Societe BIC SA1		1,903		106,797
				106,797
INSURANCE – 4.66%
AXA1		87,945		2,370,863
CNP Assurances1		2,145		153,747
				2,524,610
IRON & STEEL – 1.36%
Arcelor1		29,667		738,741
				738,741
LODGING – 1.05%
Accor SA1		12,100		568,397
				568,397
MACHINERY – DIVERSIFIED – 0.47%
ALSTOM2		271,502		252,265
				252,265
MEDIA – 5.25%
Lagardere S.C.A.1		7,799		611,803
Societe Television Francaise 11		7,271		236,647
Vivendi Universal SA2		63,184		1,999,396
				2,847,846
OIL & GAS – 15.54%
Total SA1		35,409		8,427,124
				8,427,124
OIL & GAS SERVICES – 0.39%
Technip-Coflexip SA1		1,188		211,461
				211,461
PHARMACEUTICALS – 8.96%
Sanofi-Aventis		60,599		4,858,339
				4,858,339
REAL ESTATE – 1.24%
Gecina SA1		1,980		212,880
Klepierre		1,419		133,258
Unibail Holding1		2,629		326,278
				672,416
RETAIL – 0.86%
Pinault-Printemps-Redoute SA1		4,158		464,986
				464,986
SEMICONDUCTORS – 1.20%
STMicroelectronics NV		36,355		650,488
				650,488
SOFTWARE – 0.52%
Business Objects SA1,2		4,180		116,515
Dassault Systemes SA1		3,454		163,718
				280,233
TELECOMMUNICATIONS – 6.96%
Alcatel SA Class A1,2		75,856		991,772
France Telecom		91,894		2,781,041
				3,772,813
WATER – 3.71%
Suez SA1		49,907		1,354,691
Veolia Environnement1		18,755		653,977
				2,008,668
TOTAL COMMON STOCKS (Cost: $48,855,639)				54,124,642
SHORT-TERM INVESTMENTS – 37.26%
COMMERCIAL PAPER3 – 8.77%
Amstel Funding Corp. 2.95%, 08/19/05	$	40,536		39,968
Amsterdam Funding Corp. 2.53%, 03/01/05 - 03/10/05		107,273		107,230
ANZ National Bank Ltd. 2.94%, 08/15/05		48,760		48,097
Barton Capital Corp. 2.53% - 2.54%, 03/07/05 - 03/17/05		215,772		215,597
Blue Ridge Asset Funding Corp. 2.53%, 03/23/05		107,273		107,107
Bryant Park Funding LLC 2.50%, 03/16/05		9,752		9,742
Chariot Funding LLC 2.54%, 03/21/05		97,521		97,383
Chesham Finance LLC 2.55%, 03/04/05		39,008		39,000

32 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI FRANCE INDEX FUND

February 28, 2005

Security	Principal		Value
Corporate Asset Funding 2.55%, 03/24/05	$	48,760	$	48,681
CRC Funding LLC 2.53%, 03/11/05		24,380		24,363
Delaware Funding Corp. 2.53% - 2.54%, 03/09/05 - 03/22/05		180,845		180,644
DEPFA Bank PLC 2.28%, 05/03/05		48,760		48,567
Edison Asset Securitization 2.26% - 2.53%, 03/07/05 - 05/04/05		316,943		316,371
Fairway Finance LLC 2.53% - 2.54%, 03/09/05 - 03/22/05		92,969		92,867
Falcon Asset Securitization Corp. 2.53% - 2.54%, 03/14/05 - 03/18/05		376,003		375,564
Ford Credit Auto Receivables 2.28% - 2.55%, 03/15/05 - 04/27/05		226,443		226,027
Ford Credit Floorplan Motown 2.54% - 2.56%, 03/04/05 - 03/18/05		121,901		121,851
Fortis Funding LLC 2.35%, 05/09/05		136,529		135,914
General Electric Capital Corp. 2.53% - 2.74%, 03/08/05 - 07/07/05		214,546		213,989
Giro Funding US Corp. 2.54%, 03/14/05 - 03/18/05		117,562		117,438
Grampian Funding LLC 2.49% - 3.00%, 03/23/05 - 08/22/05		287,687		284,148
Jupiter Securitization Corp. 2.53%, 03/03/05 - 03/22/05		444,919		444,516
Kitty Hawk Funding Corp. 2.54%, 03/15/05		146,281		146,137
Liberty Street Funding Corp. 2.53% - 2.54%, 03/14/05 - 03/16/05		53,636		53,584
Moat Funding LLC 2.50%, 03/23/05		19,504		19,474
Nordea North America Inc. 2.74%, 07/11/05		48,760		48,271
Park Avenue Receivables Corp. 2.53%, 03/10/05 - 03/11/05		152,330		152,227
Park Granada LLC 2.55% - 2.58%, 03/18/05 - 03/21/05		68,265		68,178
Preferred Receivables Funding Corp. 2.53% - 2.54%, 03/14/05 - 03/21/05		207,211		206,925
Ranger Funding Co. LLC 2.54%, 03/04/05		29,000		28,994
Santander Central Hispano 2.75%, 07/08/05		121,901		120,702
Scaldis Capital LLC 2.75%, 07/08/05		24,408		24,168
Ticonderoga Master Funding Ltd. 2.54% - 2.57%, 03/21/05 - 03/24/05		165,384		165,142
Tulip Funding Corp. 2.54% - 2.55%, 03/01/05		162,788		162,788
UBS Finance (Delaware) 2.62%, 03/01/05		195,042		195,042
Windmill Funding Corp. 2.55%, 03/08/05		34,132		34,115
Yorktown Capital LLC 2.53%, 03/17/05		34,132		34,094
				4,754,905
FLOATING RATE NOTES3 – 13.76%
Allstate Life Global Funding II 2.58%, 01/10/064		44,860		44,862
American Express Centurion Bank 2.58%, 01/24/06		146,281		146,281
American Express Credit Corp. 2.68%, 10/26/05		195,042		195,106
Bank of Nova Scotia 2.52% - 2.57%, 09/26/05 - 01/03/06		63,389		63,372

SCHEDULES OF INVESTMENTS 33

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI FRANCE INDEX FUND

February 28, 2005

Security	Principal		Value
Beta Finance Inc. 2.53% - 2.79%, 03/15/05 - 10/27/05	$	365,703	$	365,732
Canadian Imperial Bank of Commerce 2.52% - 2.61%, 09/13/05 - 12/14/05		331,571		331,506
CC USA Inc. 2.53% - 2.66%, 05/04/05 - 07/29/05		195,042		195,026
Commodore CDO Ltd. 2.55%, 12/12/05		24,380		24,380
Den Danske Bank NY 2.52% - 2.60%, 08/12/05 - 10/17/05		292,563		292,518
DEPFA Bank PLC 2.47%, 12/15/05		97,521		97,521
Dorada Finance Inc. 2.66%, 07/29/05		80,942		80,932
Fairway Finance LLC 2.55%, 03/14/05 - 06/20/05		146,281		146,280
Fifth Third Bancorp 2.57%, 02/23/064		195,042		195,042
Five Finance Inc. 2.62% - 2.64%, 04/29/05 - 02/27/06		126,777		126,782
General Electric Capital Corp. 2.69%, 03/09/06		43,884		43,945
General Electric Commercial Equipment Financing LLC 2.56%, 11/20/05		41,649		41,649
Hartford Life Global Funding Trust 2.58%, 02/15/06		97,521		97,521
HBOS Treasury Services PLC 2.55% - 2.56%, 01/10/06 - 01/24/06		292,563		292,563
K2 USA LLC 2.55% - 2.64%, 06/10/05 - 02/15/06		438,844		438,850
Leafs LLC 2.60%, 01/20/06 2/21/064		102,397		102,397
Links Finance LLC 2.54% - 2.77%, 04/15/05 - 02/06/06		399,836		399,937
Lothian Mortgages PLC 2.61%, 01/24/06		195,042		195,042
MetLife Funding Inc. 2.58%, 03/06/06		146,281		146,281
National City Bank (Ohio) 2.52% - 2.58%, 06/10/05 - 08/09/05		243,802		243,785
Nationwide Building Society 2.58% - 2.64%, 01/06/06 - 01/27/064		360,827		360,903
Norddeutsche Landesbank 2.63%, 07/27/05		97,521		97,507
Northern Rock PLC 2.60% - 2.62%, 10/25/05 - 02/03/064		292,563		292,563
Permanent Financing PLC 2.54% - 2.57%, 03/10/05 - 09/12/05		263,306		263,306
Sedna Finance Inc. 2.56%, 01/10/06 - 01/17/06		53,636		53,625
Sigma Finance Inc. 2.54% - 2.79%, 08/17/05 - 01/09/06		497,356		497,380
Tango Finance Corp. 2.55% - 2.74%, 04/07/05 - 09/15/05		300,072		300,059
Wachovia Asset Securitization Inc. 2.64%, 03/25/05		292,563		292,562
Wells Fargo & Co. 2.56%, 03/15/064		48,760		48,767
WhistleJacket Capital LLC 2.45% - 2.57%, 06/15/05 - 01/17/06		341,323		341,294
White Pine Finance LLC 2.54% - 2.80%, 03/29/05 - 01/13/06		533,439		533,400

34 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI FRANCE INDEX FUND

February 28, 2005

Security	Shares or Principal		Value
Winston Funding Ltd. 2.75%, 04/25/05	$	69,630	$	69,630
				7,458,306
MEDIUM-TERM NOTES3 – 0.18%
CC USA Inc. 1.29%, 04/15/054		97,521		97,520
				97,520
MONEY MARKET FUNDS3 – 0.83%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares5		393,714		393,714
BlackRock Temp Cash Money Market Fund		18,187		18,187
Short-Term Investment Co. – Prime Money Market Portfolio, Institutional Shares		36,797		36,797
				448,698
REPURCHASE AGREEMENTS3 – 7.01%
Bank of America N.A. Repurchase Agreements, dated 2/28/05, due 3/1/05, with a total maturity value of $2,194,380 and effective yields of 2.62% - 2.63%.6	$	2,194,220		2,194,220
Merrill Lynch Government Securities Inc. Repurchase Agreement, dated 2/28/05, due 3/1/05, with a maturity value of $1,609,212 and an effective yield of 2.63%.6		1,609,095		1,609,095
				3,803,315
TIME DEPOSITS3 – 6.23%
Abbey National Treasury Services PLC 1.39%, 04/08/05		68,265		68,255
Banco Bilbao Vizcaya Argentaria SA 2.50% - 2.51%, 03/21/05 - 03/22/05		146,281		146,282
BNP Paribas (New York) 2.78% - 3.03%, 07/11/05 - 08/23/05		136,529		136,529
Credit Suisse First Boston 2.55%, 03/22/05		97,521		97,521
Deutsche Bank AG 2.51%, 03/01/05		162,405		162,405
First Tennessee Bank 2.53%, 03/14/05 - 03/21/05		243,802		243,802
HBOS Treasury Services PLC 1.24% - 2.50%, 03/22/05 - 04/01/05		159,934		159,934
Key Bank N.A. 2.51% - 2.55%, 03/01/05 - 03/18/05		585,125		585,125
Natexis Banques 2.50% - 2.98%, 03/22/05 - 08/18/05		170,662		170,662
Norddeutsche Landesbank 2.11%, 06/07/05		97,521		97,516
Royal Bank of Scotland 2.54%, 03/22/05		24,380		24,380
Societe Generale 2.53%, 03/22/05		9,752		9,752
Toronto-Dominion Bank 1.22% - 2.66%, 03/23/05 - 11/09/05		390,083		390,066
UBS AG 2.67%, 11/09/05		39,008		39,006
Washington Mutual Bank 2.55%, 03/21/05 - 03/22/05		448,596		448,596
Wells Fargo Bank N.A. 2.52% - 2.53%, 03/17/05 - 03/22/05		599,753		599,752
				3,379,583
U.S. GOVERNMENT AGENCY NOTES 3 – 0.48%
Federal Home Loan Mortgage Corp. 1.63% - 2.06%, 04/15/05 - 05/31/05		116,882		116,656

SCHEDULES OF INVESTMENTS 35

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI FRANCE INDEX FUND

February 28, 2005

Security	Principal		Value
Federal National Mortgage Association 2.33%, 07/22/05	$	146,281	$	144,930
				261,586
TOTAL SHORT-TERM INVESTMENTS (Cost: $20,203,913)				20,203,913
TOTAL INVESTMENTS IN SECURITIES – 137.09% (Cost: $69,059,552)				74,328,555
Other Assets, Less Liabilities – (37.09%)				(20,111,726	)
NET ASSETS – 100.00%			$	54,216,829

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

² Non-income earning security.

³ All or a portion of these securities represent an investment of securities lending collateral. See Note 5.

⁴ All or a portion of this security is exempt from registration pursuant to Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

⁵ The Fund’s investment adviser is an affiliate of the issuer. See Note 2.

⁶ Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 2.95% to 7.85% and maturity dates ranging from 8/1/08 to 1/1/44.

See notes to financial statements.

36 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI GERMANY INDEX FUND

February 28, 2005

Security	Shares	Value
COMMON STOCKS – 96.27%
AIRLINES – 0.59%
Deutsche Lufthansa AG1,2	63,706	$	917,478
			917,478
APPAREL – 1.78%
Adidas-Salomon AG2	11,732		1,767,164
Puma AG2	4,256		1,005,501
			2,772,665
AUTO MANUFACTURERS – 8.29%
DaimlerChrysler AG2	216,748		10,066,639
Volkswagen AG2	57,428		2,847,081
			12,913,720
AUTO PARTS & EQUIPMENT – 1.54%
Continental AG2	32,256		2,393,787
			2,393,787
BANKS – 12.97%
Bayerische Hypo-und Vereinsbank AG1	157,220		3,848,169
Commerzbank AG1,2	117,488		2,635,516
DEPFA Bank PLC	87,024		1,431,185
Deutsche Bank AG2	123,760		10,891,289
Hypo Real Estate Holding AG1	33,740		1,383,850
			20,190,009
BIOTECHNOLOGY – 0.21%
QIAGEN NV1	25,172		319,753
			319,753
BUILDING MATERIALS – 0.63%
HeidelbergerCement AG2	14,896		985,249
			985,249
CHEMICALS – 9.51%
BASF AG	118,104		8,863,513
Bayer AG	169,652		5,944,952
			14,808,465
COSMETICS & PERSONAL CARE – 0.39%
Beiersdorf AG2	5,264		603,622
			603,622
DIVERSIFIED FINANCIAL SERVICES – 1.60%
Deutsche Boerse AG2	29,400		2,189,251
MLP AG2	18,284		309,433
			2,498,684
ELECTRIC – 12.82%
E.ON AG2	153,300		13,826,653
RWE AG2	100,688		6,127,771
			19,954,424
ELECTRONICS – 0.12%
EPCOS AG1,2	12,964		185,156
			185,156
ENGINEERING & CONSTRUCTION – 1.06%
Linde AG2	23,996		1,656,257
			1,656,257
FOOD – 1.66%
METRO AG2	39,480		2,221,920
Suedzucker AG2	17,304		369,792
			2,591,712
HEALTH CARE-PRODUCTS – 0.55%
Fresenius Medical Care AG2	9,576		860,006
			860,006
INSURANCE – 8.71%
Allianz AG2	60,928		7,733,055
Muenchener Rueckversicherungs-Gesellschaft AG2	47,124		5,835,919
			13,568,974
IRON & STEEL – 1.24%
ThyssenKrupp AG2	83,552		1,923,054
			1,923,054
LEISURE TIME – 0.54%
TUI AG2	32,256		842,599
			842,599
MACHINERY – DIVERSIFIED – 0.86%
MAN AG	28,924		1,341,810
			1,341,810
MANUFACTURING – 10.07%
Siemens AG2	199,528		15,686,680
			15,686,680
PHARMACEUTICALS – 3.92%
ALTANA AG2	18,732		1,155,924
Celesio AG2	10,052		761,858
Merck KGaA2	13,160		1,015,760
Schering AG2	43,176		3,163,493
			6,097,035

SCHEDULES OF INVESTMENTS 37

Schedule of Investments (Unaudited) (Continued)

iSHARES^® GERMANY INDEX FUND

February 28, 2005

Security	Shares or Principal		Value
RETAIL – 0.34%
Douglas Holding AG2		8,848	$	343,993
KarstadtQuelle AG2		16,220		188,815
				532,808
SEMICONDUCTORS – 1.08%
Infineon Technologies AG1		161,000		1,683,982
				1,683,982
SOFTWARE – 4.88%
SAP AG2		46,676		7,601,307
				7,601,307
TELECOMMUNICATIONS – 9.05%
Deutsche Telekom AG1		670,824		14,086,416
				14,086,416
TRANSPORTATION – 1.86%
Deutsche Post AG		119,896		2,888,463
				2,888,463
TOTAL COMMON STOCKS (Cost: $155,888,305)				149,904,115
PREFERRED STOCKS – 3.66%
AUTO MANUFACTURERS – 1.58%
Porsche AG2		1,988		1,438,949
Volkswagen AG		27,972		1,027,349
				2,466,298
ELECTRIC – 0.49%
RWE AG		14,476		757,060
				757,060
HEALTH CARE-PRODUCTS – 0.30%
Fresenius Medical Care AG2		7,420		471,764
				471,764
HOUSEHOLD PRODUCTS & WARES – 1.02%
Henkel KGaA2		17,752		1,591,689
				1,591,689
MEDIA – 0.27%
ProSiebenSat.1 Media AG2		20,752		414,004
				414,004
TOTAL PREFERRED STOCKS (Cost: $4,140,449)				5,700,815
SHORT-TERM INVESTMENTS – 36.28%
COMMERCIAL PAPER3 – 8.53%
Amstel Funding Corp. 2.95%, 08/19/05	$	113,217		111,630
Amsterdam Funding Corp. 2.53%, 03/01/05 - 03/10/05		299,616		299,495
ANZ National Bank Ltd. 2.94%, 08/15/05		136,189		134,335
Barton Capital Corp. 2.53% - 2.54%, 03/07/05 - 03/17/05		602,655		602,169
Blue Ridge Asset Funding Corp. 2.53%, 03/23/05		299,616		299,152
Bryant Park Funding LLC 2.50%, 03/16/05		27,238		27,210
Chariot Funding LLC 2.54%, 03/21/05		272,378		271,993
Chesham Finance LLC 2.55%, 03/04/05		108,951		108,928
Corporate Asset Funding 2.55%, 03/24/05		136,189		135,967
CRC Funding LLC 2.53%, 03/11/05		68,094		68,047
Delaware Funding Corp. 2.53% - 2.54%, 03/09/05 - 03/22/05		505,103		504,543
DEPFA Bank PLC 2.28%, 05/03/05		136,189		135,647
Edison Asset Securitization 2.26% - 2.53%, 03/07/05 - 05/04/05		885,228		883,630
Fairway Finance LLC 2.53% - 2.54%, 03/09/05 - 03/22/05		259,663		259,381
Falcon Asset Securitization Corp. 2.53% - 2.54%, 03/14/05 - 03/18/05		1,050,185		1,048,959
Ford Credit Auto Receivables 2.28% - 2.55%, 03/15/05 - 04/27/05		632,461		631,300

38 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI GERMANY INDEX FUND

February 28, 2005

Security	Principal		Value
Ford Credit Floorplan Motown 2.54% - 2.56%, 03/04/05 - 03/18/05	$	340,472	$	340,332
Fortis Funding LLC 2.35%, 05/09/05		381,329		379,611
General Electric Capital Corp. 2.53% - 2.74%, 03/08/05 - 07/07/05		599,231		597,676
Giro Funding US Corp. 2.54%, 03/14/05 - 03/18/05		328,354		328,005
Grampian Funding LLC 2.49% - 3.00%, 03/23/05 - 08/22/05		803,514		793,631
Jupiter Securitization Corp. 2.53%, 03/03/05 - 03/22/05		1,242,669		1,241,543
Kitty Hawk Funding Corp. 2.54%, 03/15/05		408,567		408,164
Liberty Street Funding Corp. 2.53% - 2.54%, 03/14/05 - 03/16/05		149,808		149,661
Moat Funding LLC 2.50%, 03/23/05		54,476		54,392
Nordea North America Inc. 2.74%, 07/11/05		136,189		134,821
Park Avenue Receivables Corp. 2.53%, 03/10/05 - 03/11/05		425,460		425,171
Park Granada LLC 2.55% - 2.58%, 03/18/05 - 03/21/05		190,664		190,421
Preferred Receivables Funding Corp. 2.53% - 2.54%, 03/14/05 - 03/21/05		578,746		577,946
Ranger Funding Co. LLC 2.54%, 03/04/05		80,997		80,980
Santander Central Hispano 2.75%, 07/08/05		340,472		337,123
Scaldis Capital LLC 2.75%, 07/08/05		68,171		67,499
Ticonderoga Master Funding Ltd. 2.54% - 2.57%, 03/21/05 - 03/24/05		461,920		461,244
Tulip Funding Corp. 2.54% - 2.55%, 03/01/05		454,669		454,670
UBS Finance (Delaware) 2.62%, 03/01/05		544,756		544,756
Windmill Funding Corp. 2.55%, 03/08/05		95,332		95,285
Yorktown Capital LLC 2.53%, 03/17/05		95,332		95,225
				13,280,542
FLOATING RATE NOTES3 – 13.38%
Allstate Life Global Funding II 2.58%, 01/10/064		125,294		125,299
American Express Centurion Bank 2.58%, 01/24/06		408,567		408,567
American Express Credit Corp. 2.68%, 10/26/05		544,756		544,935
Bank of Nova Scotia 2.52% - 2.57%, 09/26/05 - 01/03/06		177,046		177,000
Beta Finance Inc. 2.53% - 2.79%, 03/15/05 - 10/27/05		1,021,417		1,021,498
Canadian Imperial Bank of Commerce 2.52% - 2.61%, 09/13/05 - 12/14/05		926,084		925,903
CC USA Inc. 2.53% - 2.66%, 05/04/05 - 07/29/05		544,756		544,712
Commodore CDO Ltd. 2.55%, 12/12/05		68,094		68,094
Den Danske Bank NY 2.52% - 2.60%, 08/12/05 - 10/17/05		817,133		817,006
DEPFA Bank PLC 2.47%, 12/15/05		272,378		272,378
Dorada Finance Inc. 2.66%, 07/29/05		226,074		226,046
Fairway Finance LLC 2.55%, 03/14/05 - 06/20/05		408,567		408,563

SCHEDULES OF INVESTMENTS 39

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI GERMANY INDEX FUND

February 28, 2005

Security	Shares or Principal		Value
Fifth Third Bancorp 2.57%, 02/23/064	$	544,756	$	544,756
Five Finance Inc. 2.62% - 2.64%, 04/29/05 - 02/27/06		354,091		354,106
General Electric Capital Corp. 2.69%, 03/09/06		122,570		122,740
General Electric Commercial Equipment Financing LLC 2.56%, 11/20/05		116,327		116,327
Hartford Life Global Funding Trust 2.58%, 02/15/06		272,378		272,378
HBOS Treasury Services PLC 2.55% - 2.56%, 01/10/06 - 01/24/06		817,133		817,134
K2 USA LLC 2.55% - 2.64%, 06/10/05 - 02/15/06		1,225,700		1,225,715
Leafs LLC 2.60%, 01/20/06 - 02/21/064		285,997		285,996
Links Finance LLC 2.54% - 2.77%, 04/15/05 - 02/06/06		1,116,749		1,117,034
Lothian Mortgages PLC 2.61%, 01/24/06		544,756		544,756
MetLife Funding Inc. 2.58%, 03/06/06		408,567		408,567
National City Bank (Ohio) 2.52% - 2.58%, 06/10/05 - 08/09/05		680,944		680,895
Nationwide Building Society 2.58% - 2.64%, 01/06/06 - 01/27/064		1,007,798		1,008,011
Norddeutsche Landesbank 2.63%, 07/27/05		272,378		272,339
Northern Rock PLC 2.60% - 2.62%, 10/25/05 - 02/03/064		817,133		817,134
Permanent Financing PLC 2.54% - 2.57%, 03/10/05 - 09/12/05		735,420		735,421
Sedna Finance Inc. 2.56%, 01/10/06 - 01/17/06		149,808		149,777
Sigma Finance Inc. 2.54% - 2.79%, 08/17/05 - 01/09/06		1,389,127		1,389,193
Tango Finance Corp. 2.55% - 2.74%, 04/07/05 - 09/15/05		838,106		838,072
Wachovia Asset Securitization Inc. 2.64%, 03/25/05		817,133		817,134
Wells Fargo & Co. 2.56%, 03/15/064		136,189		136,209
WhistleJacket Capital LLC 2.45% - 2.57%, 06/15/05 - 01/17/06		953,322		953,240
White Pine Finance LLC 2.54% - 2.80%, 03/29/05 - 01/13/06		1,489,906		1,489,797
Winston Funding Ltd. 2.75%, 04/25/05		194,478		194,478
				20,831,210
MEDIUM-TERM NOTES3 – 0.17%
CC USA Inc. 1.29%, 04/15/054		272,378		272,374
				272,374
MONEY MARKET FUNDS3 – 0.85%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares5		1,164,616		1,164,616
BlackRock Temp Cash Money Market Fund		50,796		50,796
Short-Term Investment Co. - Prime Money Market Portfolio, Institutional Shares		102,775		102,775
				1,318,187

40 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI GERMANY INDEX FUND

February 28, 2005

Security	Principal		Value
REPURCHASE AGREEMENTS3 – 6.82%
Bank of America N.A. Repurchase Agreements, dated 2/28/05, due 3/1/05, with a total maturity value of $6,128,948 and effective yields of 2.62% - 2.63%.6	$	6,128,500	$	6,128,500
Merrill Lynch Government Securities Inc. Repurchase Agreement, dated 2/28/05, due 3/1/05, with a maturity value of $4,494,562 and an effective yield of 2.63%.6		4,494,234		4,494,234
				10,622,734
TIME DEPOSITS3 – 6.06%
Abbey National Treasury Services PLC 1.39%, 04/08/05		190,664		190,648
Banco Bilbao Vizcaya Argentaria SA 2.50% - 2.51%, 03/21/05 - 03/22/05		408,567		408,567
BNP Paribas (New York) 2.78% - 3.03%, 07/11/05 - 08/23/05		381,329		381,329
Credit Suisse First Boston 2.55%, 03/22/05		272,378		272,378
Deutsche Bank AG 2.51%, 03/01/05		453,601		453,601
First Tennessee Bank 2.53%, 03/14/05 - 03/21/05		680,944		680,945
HBOS Treasury Services PLC 1.24% - 2.50%, 03/22/05 - 04/01/05		446,700		446,698
Key Bank N.A. 2.51% - 2.55%, 03/01/05 - 03/18/05		1,634,267		1,634,267
Natexis Banques 2.50% - 2.98%, 03/22/05 - 08/18/05		476,661		476,661
Norddeutsche Landesbank 2.11%, 06/07/05		272,378		272,363
Royal Bank of Scotland 2.54%, 03/22/05		68,094		68,094
Societe Generale 2.53%, 03/22/05		27,238		27,238
Toronto-Dominion Bank 1.22% - 2.66%, 03/23/05 - 11/09/05		1,089,511		1,089,463
UBS AG 2.67%, 11/09/05		108,951		108,944
Washington Mutual Bank 2.55%, 03/21/05 - 03/22/05		1,252,938		1,252,938
Wells Fargo Bank N.A. 2.52% - 2.53%, 03/17/05 - 03/22/05		1,675,123		1,675,120
				9,439,254
U.S. GOVERNMENT AGENCY NOTES3 – 0.47%
Federal Home Loan Mortgage Corp. 1.63% - 2.06%, 04/15/05 - 05/31/05		326,453		325,821
Federal National Mortgage Association 2.33%, 07/22/05		408,567		404,793
				730,614
TOTAL SHORT-TERM INVESTMENTS (Cost: $56,494,915)				56,494,915
TOTAL INVESTMENTS IN SECURITIES – 136.21% (Cost: $216,523,669)				212,099,845
Other Assets, Less Liabilities – (36.21%)				(56,386,255	)
NET ASSETS – 100.00%			$	155,713,590

¹ Non-income earning security.

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

³ All or a portion of these securities represent an investment of securities lending collateral. See Note 5.

⁴ All or a portion of this security is exempt from registration pursuant to Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

⁵ The Fund’s investment adviser is an affiliate of the issuer. See Note 2.

⁶ Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 2.95% to 7.85% and maturity dates ranging from 8/1/08 to 1/1/44.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 41

Schedule of Investments (Unaudited)

iSHARES^® MSCI ITALY INDEX FUND

February 28, 2005

Security	Shares	Value
COMMON STOCKS – 93.79%
AEROSPACE & DEFENSE – 1.67%
Finmeccanica SpA1	626,760	$	645,578
			645,578
APPAREL – 0.22%
Benetton Group SpA1	6,940		85,762
			85,762
AUTO MANUFACTURERS – 1.04%
Fiat SpA1,2	53,690		402,650
			402,650
AUTO PARTS & EQUIPMENT – 0.93%
Pirelli SpA1	277,287		360,512
			360,512
BANKS – 25.89%
Banca Antonveneta SpA1,2	25,910		763,838
Banca Intesa SpA1	324,930		1,595,795
Banca Monte dei Paschi di Siena SpA1	135,200		461,206
Banca Nazionale del Lavoro SpA1,2	185,620		520,483
Banca Popolare di Milano Scrl1	46,030		400,802
Banca Popolare di Verona e Novara Scrl	43,050		845,708
Banche Popolari Unite Scrl	42,890		884,693
Capitalia SpA	154,080		787,395
Fineco SpA1,2	16,327		145,850
Sanpaolo IMI SpA1	118,564		1,739,004
UniCredito Italiano SpA1	321,180		1,878,998
			10,023,772
BUILDING MATERIALS – 0.44%
Italcementi SpA1	9,670		171,482
			171,482
COMMERCIAL SERVICES – 2.27%
Autostrade SpA	31,520		877,344
			877,344
DIVERSIFIED FINANCIAL SERVICES – 2.78%
Banca Fideuram SpA1	32,110		169,206
Mediobanca SpA1	53,620		908,873
			1,078,079
ELECTRIC – 8.96%
Edison SpA1,2	98,780		206,245
Enel SpA1	303,610		2,927,771
Terna SpA Rights1,2	117,550		336,635
			3,470,651
GAS – 2.36%
Snam Rete Gas SpA	156,190		914,794
			914,794
HEALTH CARE-PRODUCTS – 0.91%
Luxottica Group SpA1	16,700		354,003
			354,003
INSURANCE – 13.02%
Alleanza Assicurazioni SpA1	53,870		733,635
Assicurazioni Generali SpA1	97,220		3,262,257
Mediolanum SpA1	27,640		203,435
Riunione Adriatica di Sicurta SpA1	36,150		840,674
			5,040,001
MEDIA – 3.73%
Arnoldo Mondadori Editore SpA1	13,860		155,271
Gruppo Editoriale L’Espresso SpA1	18,660		120,622
Mediaset SpA1	63,350		894,692
Seat Pagine Gialle SpA1,2	430,234		192,451
Telecom Italia Media SpA1,2	154,787		79,203
			1,442,239
OIL & GAS – 18.31%
ENI SpA1	271,180		7,091,030
			7,091,030
RETAIL – 0.95%
Autogrill SpA1,2	12,340		193,933
Bulgari SpA1	13,840		172,316
			366,249
TELECOMMUNICATIONS – 10.31%
Telecom Italia Mobile SpA	73,773		507,729
Telecom Italia SpA1	874,981		3,411,630
Tiscali SpA1,2	20,630		72,292
			3,991,651
TOTAL COMMON STOCKS (Cost: $28,434,661)			36,315,797
PREFERRED STOCKS – 5.93%
BANKS – 0.74%
Banca Intesa SpA RNC	64,230		285,606
			285,606

42 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI ITALY INDEX FUND

February 28, 2005

Security	Shares or Principal		Value
TELECOMMUNICATIONS – 5.19%
Telecom Italia SpA RNC1		635,021	$	2,010,305
				2,010,305
TOTAL PREFERRED STOCKS (Cost: $1,250,601)				2,295,911
SHORT-TERM INVESTMENTS – 42.59%
COMMERCIAL PAPER3 – 10.01%
Amstel Funding Corp. 2.95%, 08/19/05	$	33,035		32,572
Amsterdam Funding Corp. 2.53%, 03/01/05 - 03/10/05		87,424		87,388
ANZ National Bank Ltd. 2.94%, 08/15/05		39,738		39,197
Barton Capital Corp. 2.53% - 2.54%, 03/07/05 - 03/17/05		175,846		175,706
Blue Ridge Asset Funding Corp. 2.53%, 03/23/05		87,424		87,288
Bryant Park Funding LLC 2.50%, 03/16/05		7,948		7,939
Chariot Funding LLC 2.54%, 03/21/05		79,476		79,364
Chesham Finance LLC 2.55%, 03/04/05		31,790		31,784
Corporate Asset Funding 2.55%, 03/24/05		39,738		39,673
CRC Funding LLC 2.53%, 03/11/05		19,869		19,855
Delaware Funding Corp. 2.53% - 2.54%, 03/09/05 - 03/22/05		147,382		147,219
DEPFA Bank PLC 2.28%, 05/03/05		39,738		39,580
Edison Asset Securitization 2.26% - 2.53%, 03/07/05 - 05/04/05		258,297		257,831
Fairway Finance LLC 2.53% - 2.54%, 03/09/05 - 03/22/05		75,766		75,684
Falcon Asset Securitization Corp. 2.53% - 2.54%, 03/14/05 - 03/18/05		306,429		306,071
Ford Credit Auto Receivables 2.28% - 2.55%, 03/15/05 - 04/27/05		184,543		184,205
Ford Credit Floorplan Motown 2.54% - 2.56%, 03/04/05 - 03/18/05		99,345		99,304
Fortis Funding LLC 2.35%, 05/09/05		111,266		110,765
General Electric Capital Corp. 2.53% - 2.74%, 03/08/05 - 07/07/05		174,847		174,394
Giro Funding US Corp. 2.54%, 03/14/05 - 03/18/05		95,809		95,707
Grampian Funding LLC 2.49% - 3.00%, 03/23/05 - 08/22/05		234,454		231,571
Jupiter Securitization Corp. 2.53%, 03/03/05 - 03/22/05		362,593		362,265
Kitty Hawk Funding Corp. 2.54%, 03/15/05		119,214		119,096
Liberty Street Funding Corp. 2.53% - 2.54%, 03/14/05 - 03/16/05		43,712		43,669
Moat Funding LLC 2.50%, 03/23/05		15,895		15,871
Nordea North America Inc. 2.74%, 07/11/05		39,738		39,339
Park Avenue Receivables Corp. 2.53%, 03/10/05 - 03/11/05		124,143		124,059
Park Granada LLC 2.55% - 2.58%, 03/18/05 - 03/21/05		55,633		55,563
Preferred Receivables Funding Corp. 2.53% - 2.54%, 03/14/05 - 03/21/05		168,870		168,636
Ranger Funding Co. LLC 2.54%, 03/04/05		23,634		23,629
Santander Central Hispano 2.75%, 07/08/05		99,345		98,368

SCHEDULES OF INVESTMENTS 43

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI ITALY INDEX FUND

February 28, 2005

Security	Principal		Value
Scaldis Capital LLC 2.75%, 07/08/05	$	19,891	$	19,695
Ticonderoga Master Funding Ltd. 2.54% - 2.57%, 03/21/05 - 03/24/05		134,782		134,585
Tulip Funding Corp. 2.54% - 2.55%, 03/01/05		132,666		132,666
UBS Finance (Delaware) 2.62%, 03/01/05		158,952		158,952
Windmill Funding Corp. 2.55%, 03/08/05		27,817		27,803
Yorktown Capital LLC 2.53%, 03/17/05		27,817		27,786
				3,875,079
FLOATING RATE NOTES3 – 15.70%
Allstate Life Global Funding II 2.58%, 01/10/064		36,559		36,560
American Express Centurion Bank 2.58%, 01/24/06		119,214		119,214
American Express Credit Corp. 2.68%, 10/26/05		158,952		159,004
Bank of Nova Scotia 2.52% - 2.57%, 09/26/05 - 01/03/06		51,659		51,647
Beta Finance Inc. 2.53% - 2.79%, 03/15/05 - 10/27/05		298,035		298,059
Canadian Imperial Bank of Commerce 2.52% - 2.61%, 09/13/05 - 12/14/05		270,218		270,166
CC USA Inc. 2.53% - 2.66%, 05/04/05 - 07/29/05		158,952		158,939
Commodore CDO Ltd. 2.55%, 12/12/05		19,869		19,869
Den Danske Bank NY 2.52% - 2.60%, 08/12/05 - 10/17/05		238,428		238,391
DEPFA Bank PLC 2.47%, 12/15/05		79,476		79,476
Dorada Finance Inc. 2.66%, 07/29/05		65,965		65,957
Fairway Finance LLC 2.55%, 03/14/05 - 06/20/05		119,214		119,213
Fifth Third Bancorp 2.57%, 02/23/064		158,952		158,952
Five Finance Inc. 2.62% - 2.64%, 04/29/05 - 02/27/06		103,319		103,323
General Electric Capital Corp. 2.69%, 03/09/06		35,764		35,814
General Electric Commercial Equipment Financing LLC 2.56%, 11/20/05		33,942		33,942
Hartford Life Global Funding Trust 2.58%, 02/15/06		79,476		79,476
HBOS Treasury Services PLC 2.55% - 2.56%, 01/10/06 - 01/24/06		238,428		238,428
K2 USA LLC 2.55% - 2.64%, 06/10/05 - 02/15/06		357,642		357,646
Leafs LLC 2.60%, 01/20/06 - 02/21/064		83,450		83,450
Links Finance LLC 2.54% - 2.77%, 04/15/05 - 02/06/06		325,851		325,934
Lothian Mortgages PLC 2.61%, 01/24/06		158,952		158,952
MetLife Funding Inc. 2.58%, 03/06/06		119,214		119,214
National City Bank (Ohio) 2.52% - 2.58%, 06/10/05 - 08/09/05		198,690		198,674
Nationwide Building Society 2.58% - 2.64%, 01/06/06 - 01/27/064		294,061		294,124
Norddeutsche Landesbank 2.63%, 07/27/05		79,476		79,465
Northern Rock PLC 2.60% - 2.62%, 10/25/05 - 02/03/064		238,428		238,428

44 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI ITALY INDEX FUND

February 28, 2005

Security	Shares or Principal		Value
Permanent Financing PLC 2.54% - 2.57%, 03/10/05 - 09/12/05	$	214,585	$	214,585
Sedna Finance Inc. 2.56%, 01/10/06 - 01/17/06		43,712		43,703
Sigma Finance Inc. 2.54% - 2.79%, 08/17/05 - 01/09/06		405,327		405,347
Tango Finance Corp. 2.55% - 2.74%, 04/07/05 - 09/15/05		244,547		244,537
Wachovia Asset Securitization Inc. 2.64%, 03/25/05		238,428		238,428
Wells Fargo & Co. 2.56%, 03/15/064		39,738		39,744
WhistleJacket Capital LLC 2.45% - 2.57%, 06/15/05 - 01/17/06		278,166		278,141
White Pine Finance LLC 2.54% - 2.80%, 03/29/05 - 01/13/06		434,733		434,699
Winston Funding Ltd. 2.75%, 04/25/05		56,746		56,746
				6,078,247
MEDIUM-TERM NOTES3 – 0.21%
CC USA Inc. 1.29%, 04/15/054		79,476		79,475
				79,475
MONEY MARKET FUNDS3 – 1.00%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares5		343,524		343,524
BlackRock Temp Cash Money Market Fund		14,822		14,822
Short-Term Investment Co. - Prime Money Market Portfolio, Institutional Shares		29,988		29,988
				388,334
REPURCHASE AGREEMENTS3 – 8.01%
Bank of America N.A. Repurchase Agreements, dated 2/28/05 due 3/1/05, with a total maturity value of $1,788,339 and effective yields of 2.62% - 2.63%6	$	1,788,208		1,788,208
Merrill Lynch Government Securities Inc. Repurchase Agreement, dated 2/28/05, due 3/1/05, with a maturity value of $1,311,449 and an effective yield of 2.63%6		1,311,353		1,311,353
				3,099,561
TIME DEPOSITS3 – 7.11%
Abbey National Treasury Services PLC 1.39%, 04/08/05		55,633		55,620
Banco Bilbao Vizcaya Argentaria SA 2.50% - 2.51%, 03/21/05 - 03/22/05		119,214		119,214
BNP Paribas (New York) 2.78% - 3.03%, 07/11/05 - 08/23/05		111,266		111,266
Credit Suisse First Boston 2.55%, 03/22/05		79,476		79,476
Deutsche Bank AG 2.51%, 03/01/05		132,354		132,354
First Tennessee Bank 2.53%, 03/14/05 - 03/21/05		198,690		198,690
HBOS Treasury Services PLC 1.24% - 2.50%, 03/22/05 - 04/01/05		130,341		130,340
Key Bank N.A. 2.51% - 2.55%, 03/01/05 - 03/18/05		476,856		476,856
Natexis Banques 2.50% - 2.98%, 03/22/05 - 08/18/05		139,083		139,083
Norddeutsche Landesbank 2.11%, 06/07/05		79,476		79,472
Royal Bank of Scotland 2.54%, 03/22/05		19,869		19,869

SCHEDULES OF INVESTMENTS 45

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI ITALY INDEX FUND

February 28, 2005

Security	Principal		Value
Societe Generale 2.53%, 03/22/05	$	7,948	$	7,948
Toronto-Dominion Bank 1.22% - 2.66%, 03/23/05 - 11/09/05		317,904		317,890
UBS AG 2.67%, 11/09/05		31,790		31,789
Washington Mutual Bank 2.55%, 03/21/05 - 03/22/05		365,590		365,590
Wells Fargo Bank N.A. 2.52% - 2.53%, 03/17/05 - 03/22/05		488,777		488,777
				2,754,234
U.S. GOVERNMENT AGENCY NOTES3 – 0.55%
Federal Home Loan Mortgage Corp. 1.63% - 2.06%, 04/15/05 - 05/31/05		95,254		95,070
Federal National Mortgage Association 2.33%, 07/22/05		119,214		118,113
				213,183
TOTAL SHORT-TERM INVESTMENTS (Cost: $16,488,113)				16,488,113
TOTAL INVESTMENTS IN SECURITIES – 142.31% (Cost: $46,173,375)				55,099,821
Other Assets, Less Liabilities – (42.31%)				(16,381,249	)
NET ASSETS – 100.00%			$	38,718,572

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

² Non-income earning security.

³ All or a portion of these securities represent an investment of securities lending collateral. See Note 5.

⁴ All or a portion of this security is exempt from registration pursuant to Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

⁵ The Fund’s investment adviser is an affiliate of the issuer. See Note 2.

⁶ Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 2.95% to 7.85% and maturity dates ranging from 8/1/08 to 1/1/44.

See notes to financial statements.

46 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI NETHERLANDS INDEX FUND

February 28, 2005

Security	Shares or Principal		Value
COMMON STOCKS – 99.51%
BANKS – 4.83%
ABN AMRO Holding NV		90,365	$	2,493,677
				2,493,677
BEVERAGES – 3.50%
Heineken NV		52,794		1,806,562
				1,806,562
CHEMICALS – 5.29%
Akzo Nobel NV		46,958		2,122,326
DSM NV		8,586		611,429
				2,733,755
COMMERCIAL SERVICES – 2.68%
IHC Caland NV		10,600		704,902
Randstad Holdings NV		4,717		210,248
Vedior NV		24,910		468,190
				1,383,340
COMPUTERS – 0.29%
Getronics NV1,2		57,346		151,475
				151,475
DISTRIBUTION & WHOLESALE – 0.34%
Hagemeyer NV1,2		60,791		175,099
				175,099
ELECTRONICS – 4.80%
Koninklijke Philips Electronics NV		89,411		2,479,219
				2,479,219
FOOD – 13.53%
Koninklijke Ahold NV1		179,140		1,624,048
Koninklijke Numico NV CVA1,2		17,310		700,781
Unilever NV CVA		69,854		4,663,852
				6,988,681
INSURANCE – 18.80%
AEGON NV2		161,332		2,334,170
ING Groep NV2		239,083		7,378,314
				9,712,484
MEDIA – 7.19%
Reed Elsevier NV		130,168		1,959,308
VNU NV		29,468		924,663
Wolters Kluwer NV CVA		42,930		831,954
				3,715,925
OFFICE & BUSINESS EQUIPMENT – 0.98%
Oce NV2		30,687		509,155
				509,155
OIL & GAS – 24.75%
Royal Dutch Petroleum Co.2		202,354		12,785,102
				12,785,102
REAL ESTATE INVESTMENT TRUSTS – 1.77%
Corio NV		4,359		243,009
Rodamco Europe NV		5,406		436,639
Wereldhave NV		2,226		234,749
				914,397
SEMICONDUCTORS – 2.23%
ASML Holding NV1		62,063		1,150,839
				1,150,839
TELECOMMUNICATIONS – 4.48%
Koninklijke KPN NV		238,288		2,312,091
				2,312,091
TRANSPORTATION – 4.05%
TPG NV		74,624		2,091,982
				2,091,982
TOTAL COMMON STOCKS (Cost: $ 46,581,214)				51,403,783
SHORT-TERM INVESTMENTS – 19.81%
COMMERCIAL PAPER3 – 4.65%
Amstel Funding Corp. 2.95%, 08/19/05	$	20,492		20,205
Amsterdam Funding Corp. 2.53%, 03/01/05 - 03/10/05		54,229		54,208
ANZ National Bank Ltd. 2.94%, 08/15/05		24,650		24,314
Barton Capital Corp. 2.53% - 2.54%, 03/07/05 - 03/17/05		109,078		108,990
Blue Ridge Asset Funding Corp. 2.53%, 03/23/05		54,229		54,145
Bryant Park Funding LLC 2.50%, 03/16/05		4,930		4,925
Chariot Funding LLC 2.54%, 03/21/05		49,299		49,230

SCHEDULES OF INVESTMENTS 47

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI NETHERLANDS INDEX FUND

February 28, 2005

Security	Principal		Value
Chesham Finance LLC 2.55%, 03/04/05	$	19,720	$	19,715
Corporate Asset Funding 2.55%, 03/24/05		24,650		24,609
CRC Funding LLC 2.53%, 03/11/05		12,325		12,317
Delaware Funding Corp. 2.53% - 2.54%, 03/09/05 - 03/22/05		91,421		91,321
DEPFA Bank PLC 2.28%, 05/03/05		24,650		24,552
Edison Asset Securitization 2.26% - 2.53%, 03/07/05 - 05/04/05		160,222		159,933
Fairway Finance LLC 2.53% - 2.54%, 03/09/05 - 03/22/05		46,998		46,947
Falcon Asset Securitization Corp. 2.53% - 2.54%, 03/14/05 - 03/18/05		190,079		189,858
Ford Credit Auto Receivables 2.28% - 2.55%, 03/15/05 - 04/27/05		114,472		114,262
Ford Credit Floorplan Motown 2.54% - 2.56%, 03/04/05 - 03/18/05		61,624		61,599
Fortis Funding LLC 2.35%, 05/09/05		69,019		68,708
General Electric Capital Corp. 2.53% - 2.74%, 03/08/05 - 07/07/05		108,458		108,177
Giro Funding US Corp. 2.54%, 03/14/05 - 03/18/05		59,431		59,367
Grampian Funding LLC 2.49% - 3.00%, 03/23/05 - 08/22/05		145,432		143,643
Jupiter Securitization Corp. 2.53%, 03/03/05 - 03/22/05		224,917		224,712
Kitty Hawk Funding Corp. 2.54%, 03/15/05		73,949		73,876
Liberty Street Funding Corp. 2.53% - 2.54%, 03/14/05 - 03/16/05		27,114		27,088
Moat Funding LLC 2.50%, 03/23/05		9,860		9,845
Nordea North America Inc. 2.74%, 07/11/05		24,650		24,402
Park Avenue Receivables Corp. 2.53%, 03/10/05 - 03/11/05		77,006		76,954
Park Granada LLC 2.55% - 2.58%, 03/18/05 - 03/21/05		34,509		34,466
Preferred Receivables Funding Corp. 2.53% - 2.54%, 03/14/05 - 03/21/05		104,750		104,605
Ranger Funding Co. LLC 2.54%, 03/04/05		14,660		14,657
Santander Central Hispano 2.75%, 07/08/05		61,624		61,018
Scaldis Capital LLC 2.75%, 07/08/05		12,339		12,217
Ticonderoga Master Funding Ltd. 2.54% - 2.57%, 03/21/05 - 03/24/05		83,605		83,483
Tulip Funding Corp. 2.54% - 2.55%, 03/01/05		82,293		82,293
UBS Finance (Delaware) 2.62%, 03/01/05		98,598		98,598
Windmill Funding Corp. 2.55%, 03/08/05		17,255		17,246
Yorktown Capital LLC 2.53%, 03/17/05		17,255		17,235
				2,403,720
FLOATING RATE NOTES3 – 7.30%
Allstate Life Global Funding II 2.58%, 01/10/064		22,678		22,678
American Express Centurion Bank 2.58%, 01/24/06		73,949		73,949
American Express Credit Corp. 2.68%, 10/26/05		98,598		98,631

48 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI NETHERLANDS INDEX FUND

February 28, 2005

Security	Principal		Value
Bank of Nova Scotia 2.52% - 2.57%, 09/26/05 - 01/03/06	$	32,044	$	32,036
Beta Finance Inc. 2.53% - 2.79%, 03/15/05 - 10/27/05		184,872		184,885
Canadian Imperial Bank of Commerce 2.52% - 2.61%, 09/13/05 - 12/14/05		167,617		167,585
CC USA Inc. 2.53% - 2.66%, 05/04/05 - 07/29/05		98,598		98,590
Commodore CDO Ltd. 2.55%, 12/12/05		12,325		12,325
Den Danske Bank NY 2.52% - 2.60%, 08/12/05 - 10/17/05		147,897		147,874
DEPFA Bank PLC 2.47%, 12/15/05		49,299		49,299
Dorada Finance Inc. 2.66%, 07/29/05		40,918		40,913
Fairway Finance LLC 2.55%, 03/14/05 - 06/20/05		73,949		73,948
Fifth Third Bancorp 2.57%, 02/23/064		98,598		98,598
Five Finance Inc. 2.62% - 2.64%, 04/29/05 - 02/27/06		64,089		64,092
General Electric Capital Corp. 2.69%, 03/09/06		22,185		22,215
General Electric Commercial Equipment Financing LLC 2.56%, 11/20/05		21,055		21,055
Hartford Life Global Funding Trust 2.58%, 02/15/06		49,299		49,299
HBOS Treasury Services PLC 2.55% - 2.56%, 01/10/06 - 01/24/06		147,897		147,897
K2 USA LLC 2.55% - 2.64%, 06/10/05 - 02/15/06		221,846		221,849
Leafs LLC 2.60%, 01/20/06 - 02/21/064		51,764		51,764
Links Finance LLC 2.54% - 2.77%, 04/15/05 - 02/06/06		202,126		202,179
Lothian Mortgages PLC 2.61%, 01/24/06		98,598		98,598
MetLife Funding Inc. 2.58%, 03/06/06		73,949		73,949
National City Bank (Ohio) 2.52% - 2.58%, 06/10/05 - 08/09/05		123,248		123,239
Nationwide Building Society 2.58% - 2.64%, 01/06/06 - 01/27/064		182,407		182,445
Norddeutsche Landesbank 2.63%, 07/27/05		49,299		49,292
Northern Rock PLC 2.60% - 2.62%, 10/25/05 - 02/03/064		147,897		147,897
Permanent Financing PLC 2.54% - 2.57%, 03/10/05 - 09/12/05		133,108		133,108
Sedna Finance Inc. 2.56%, 01/10/06 - 01/17/06		27,114		27,109
Sigma Finance Inc. 2.54% - 2.79%, 08/17/05 - 01/09/06		251,425		251,438
Tango Finance Corp. 2.55% - 2.74%, 04/07/05 - 09/15/05		151,693		151,688
Wachovia Asset Securitization Inc. 2.64%, 03/25/05		147,897		147,898
Wells Fargo & Co. 2.56%, 03/15/064		24,650		24,653
WhistleJacket Capital LLC 2.45% - 2.57%, 06/15/05 - 01/17/06		172,547		172,534

SCHEDULES OF INVESTMENTS 49

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI NETHERLANDS INDEX FUND

February 28, 2005

Security	Shares or Principal		Value
White Pine Finance LLC 2.54% - 2.80%, 03/29/05 - 01/13/06	$	269,666	$	269,645
Winston Funding Ltd. 2.75%, 04/25/05		35,200		35,200
				3,770,354
MEDIUM-TERM NOTES3 – 0.10%
CC USA Inc. 1.29%, 04/15/054		49,299		49,298
				49,298
MONEY MARKET FUNDS3 – 0.47%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares5		217,506		217,506
BlackRock Temp Cash Money Market Fund		9,194		9,194
Short-Term Investment Co. - Prime Money Market Portfolio, Institutional Shares		18,602		18,602
				245,302
REPURCHASE AGREEMENTS3 – 3.72%
Bank of America N.A. Repurchase Agreements, dated 2/28/05, due 3/1/05, with a total maturity value of $1,109,310 and effective yields of 2.62% - 2.63%.6	$	1,109,230		1,109,230
Merrill Lynch Government Securities Inc. Repurchase Agreement, dated 2/28/05, due 3/1/05, with a maturity value of $813,494 and an effective yield of 2.63%.6		813,435		813,435
				1,922,665
TIME DEPOSITS3 – 3.31%
Abbey National Treasury Services PLC 1.39%, 04/08/05		34,509		34,497
Banco Bilbao Vizcaya Argentaria SA 2.50% - 2.51%, 03/21/05 - 03/22/05		73,949		73,9 48
BNP Paribas (New York) 2.78% - 3.03%, 07/11/05 - 08/23/05		69,019		69,019
Credit Suisse First Boston 2.55%, 03/22/05		49,299		49,299
Deutsche Bank AG 2.51%, 03/01/05		82,100		82,100
First Tennessee Bank 2.53%, 03/14/05 - 03/21/05		123,248		123,248
HBOS Treasury Services PLC 1.24% - 2.50%, 03/22/05 - 04/01/05		80,850		80,850
Key Bank N.A. 2.51% - 2.55%, 03/01/05 - 03/18/05		295,794		295,795
Natexis Banques 2.50% - 2.98%, 03/22/05 - 08/18/05		86,273		86,273
Norddeutsche Landesbank 2.11%, 06/07/05		49,299		49,296
Royal Bank of Scotland 2.54%, 03/22/05		12,325		12,325
Societe Generale 2.53%, 03/22/05		4,930		4,930
Toronto - Dominion Bank 1.22% - 2.66%, 03/23/05 - 11/09/05		197,196		197,187
UBS AG 2.67%, 11/09/05		19,720		19,718
Washington Mutual Bank 2.55%, 03/21/05 - 03/22/05		226,776		226,776
Wells Fargo Bank N.A. 2.52% - 2.53%, 03/17/05 - 03/22/05		303,189		303,189
				1,708,450
U.S. GOVERNMENT AGENCY NOTES3 – 0.26%
Federal Home Loan Mortgage Corp. 1.63% - 2.06%, 04/15/05 - 05/31/05		59,086		58,972

50 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI NETHERLANDS INDEX FUND

February 28, 2005

Security	Principal		Value
Federal National Mortgage Association 2.33%, 07/22/05	$	73,949	$	73,266
				132,238
TOTAL SHORT-TERM INVESTMENTS (Cost: $ 10,232,027)				10,232,027
TOTAL INVESTMENTS IN SECURITIES – 119.32% (Cost: $ 56,813,241)				61,635,810
Other Assets, Less Liabilities – (19.32%)				(9,980,887	)
NET ASSETS – 100.00%			$	51,654,923

¹ Non-income earning security.

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

³ All or a portion of these securities represent an investment of securities lending collateral. See Note 5.

⁴ All or a portion of this security is exempt from registration pursuant to Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

⁵ The Fund’s investment adviser is an affiliate of the issuer. See Note 2.

⁶ Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 2.95% to 7.85% and maturity dates ranging from 8/1/08 to 1/1/44.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 51

Schedule of Investments (Unaudited)

iSHARES^® MSCI SPAIN INDEX FUND

February 28, 2005

Security	Shares	Value
COMMON STOCKS – 99.93%
ADVERTISING – 0.57%
Telefonica Publicidad e Informacion SA1	39,825	$	381,133
			381,133
AGRICULTURE – 3.54%
Altadis SA	56,375		2,375,832
			2,375,832
AIRLINES – 0.47%
Iberia Lineas Aereas de Espana SA1	89,575		313,889
			313,889
BANKS – 33.45%
Banco Bilbao Vizcaya Argentaria SA	470,875		8,168,958
Banco Popular Espanol SA1	46,850		3,252,346
Banco Santander Central Hispano SA1	828,875		10,297,940
Bankinter SA1	13,325		711,899
			22,431,143
BIOTECHNOLOGY – 0.47%
Zeltia SA1	35,175		315,154
			315,154
BUILDING MATERIALS – 0.13%
Uralita SA2	15,750		86,341
			86,341
COMMERCIAL SERVICES – 2.44%
Abertis Infraestructuras SA1	56,300		1,338,411
Cintra Concesiones de Infraestructuras de Transporte SA2	25,925		295,939
			1,634,350
COMPUTERS – 0.73%
Indra Sistemas SA1	28,275		490,528
			490,528
ELECTRIC – 11.98%
Endesa SA1	144,025		3,267,122
Iberdrola SA1	123,575		3,267,423
Union Fenosa SA1	51,950		1,496,342
			8,030,887
ENERGY – ALTERNATE SOURCES – 0.43%
Gamesa Corporacion Tecnologica SA1	20,700		287,950
			287,950
ENGINEERING & CONSTRUCTION – 5.57%
Acciona SA1	5,850		549,374
Actividades de Construcciones y Servicios SA1	64,800		1,656,597
Fomento de Construcciones y Contratas SA1	17,075		882,102
Grupo Ferrovial SA	10,800		645,666
			3,733,739
FOOD – 0.98%
Ebro Puleva SA1	26,082		450,059
Viscofan SA1	19,375		207,540
			657,599
FOREST PRODUCTS & PAPER – 0.44%
Grupo Empresarial ENCE SA1	8,925		296,402
			296,402
GAS – 2.13%
Gas Natural SDG SA	48,200		1,430,554
			1,430,554
INSURANCE – 1.15%
Corporacion Mapfre SA1	47,494		769,102
			769,102
IRON & STEEL – 1.26%
Acerinox SA1	48,700		846,809
			846,809
LODGING – 0.72%
NH Hoteles SA1	33,800		485,882
			485,882
MEDIA – 1.56%
Antena 3 de Television SA1,2	2,900		223,260
Promotora de Informaciones SA	27,800		586,346
Sogecable SA1,2	5,825		235,279
			1,044,885
OIL & GAS – 5.00%
Repsol YPF SA1	122,775		3,350,569
			3,350,569
PHARMACEUTICALS – 0.80%
FAES FARMA SA1	26,275		532,907
			532,907

52 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI SPAIN INDEX FUND

February 28, 2005

Security	Shares or Principal		Value
REAL ESTATE – 1.29%
Metrovacesa SA		6,550	$	340,810
Sacyr Vallehermoso SA1		28,502		525,110
				865,920
RETAIL – 2.28%
Industria de Diseno Textil SA1		49,325		1,526,796
				1,526,796
TELECOMMUNICATIONS – 20.81%
Telefonica SA		756,400		13,955,705
				13,955,705
TRANSPORTATION – 0.85%
Amadeus Global Travel Distribution SA Class A		59,450		570,526
				570,526
WATER – 0.88%
Sociedad General de Aguas de Barcelona SA1,2		301		6,393
Sociedad General de Aguas de Barcelona SA Class B		27,249		584,12
				590,522
TOTAL COMMON STOCKS (Cost: $51,775,269)				67,005,124
SHORT-TERM INVESTMENTS – 21.66%
COMMERCIAL PAPER3 – 5.08%
Amstel Funding Corp. 2.95%, 08/19/05	$	29,069		28,662
Amsterdam Funding Corp. 2.53%, 03/01/05 - 03/10/05		76,928		76,898
ANZ National Bank Ltd. 2.94%, 08/15/05		34,967		34,492
Barton Capital Corp. 2.53% - 2.54%, 03/07/05 - 03/17/05		154,736		154,611
Blue Ridge Asset Funding Corp. 2.53%, 03/23/05		76,928		76,809
Bryant Park Funding LLC 2.50%, 03/16/05		6,993		6,986
Chariot Funding LLC 2.54%, 03/21/05		69,935		69,836
Chesham Finance LLC 2.55%, 03/04/05		27,974		27,968
Corporate Asset Funding 2.55%, 03/24/05		34,967		34,910
CRC Funding LLC 2.53%, 03/11/05		17,484		17,472
Delaware Funding Corp. 2.53% - 2.54%, 03/09/05 - 03/22/05		129,688		129,544
DEPFA Bank PLC 2.28%, 05/03/05		34,967		34,828
Edison Asset Securitization 2.26% - 2.53%, 03/07/05 - 05/04/05		227,288		226,878
Fairway Finance LLC 2.53% - 2.54%, 03/09/05 - 03/22/05		66,670		66,599
Falcon Asset Securitization Corp. 2.53% - 2.54%, 03/14/05 - 03/18/05		269,642		269,328
Ford Credit Auto Receivables 2.28% - 2.55%, 03/15/05 - 04/27/05		162,389		162,091
Ford Credit Floorplan Motown 2.54% - 2.56%, 03/04/05 - 03/18/05		87,418		87,383
Fortis Funding LLC 2.35%, 05/09/05		97,909		97,468
General Electric Capital Corp. 2.53% - 2.74%, 03/08/05 - 07/07/05		153,857		153,458
Giro Funding US Corp. 2.54%, 03/14/05 - 03/18/05		84,307		84,217
Grampian Funding LLC 2.49% - 3.00%, 03/23/05 - 08/22/05		206,308		203,770
Jupiter Securitization Corp. 2.53%, 03/03/05 - 03/22/05		319,063		318,775
Kitty Hawk Funding Corp. 2.54%, 03/15/05		104,902		104,799

SCHEDULES OF INVESTMENTS 53

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI SPAIN INDEX FUND

February 28, 2005

Security	Principal		Value
Liberty Street Funding Corp. 2.53% - 2.54%, 03/14/05 - 03/16/05	$	38,464	$	38,426
Moat Funding LLC 2.50%, 03/23/05		13,987		13,966
Nordea North America Inc. 2.74%, 07/11/05		34,967		34,616
Park Avenue Receivables Corp. 2.53%, 03/10/05 - 03/11/05		109,240		109,166
Park Granada LLC 2.55% - 2.58%, 03/18/05 - 03/21/05		48,954		48,892
Preferred Receivables Funding Corp. 2.53% - 2.54%, 03/14/05 - 03/21/05		148,597		148,391
Ranger Funding Co. LLC 2.54%, 03/04/05		20,797		20,793
Santander Central Hispano 2.75%, 07/08/05		87,418		86,559
Scaldis Capital LLC 2.75%, 07/08/05		17,503		17,331
Ticonderoga Master Funding Ltd. 2.54% - 2.57%, 03/21/05 - 03/24/05		118,601		118,428
Tulip Funding Corp. 2.54% - 2.55%, 03/01/05		116,739		116,740
UBS Finance (Delaware) 2.62%, 03/01/05		139,870		139,870
Windmill Funding Corp. 2.55%, 03/08/05		24,477		24,465
Yorktown Capital LLC 2.53%, 03/17/05		24,477		24,450
				3,409,875
FLOATING RATE NOTES3 – 7.98%
Allstate Life Global Funding II 2.58%, 01/10/064		32,170		32,171
American Express Centurion Bank 2.58%, 01/24/06		104,902		104,902
American Express Credit Corp. 2.68%, 10/26/05		139,870		139,916
Bank of Nova Scotia 2.52% - 2.57%, 09/26/05 - 01/03/06		45,458		45,446
Beta Finance Inc. 2.53% - 2.79%, 03/15/05 - 10/27/05		262,255		262,276
Canadian Imperial Bank of Commerce 2.52% - 2.61%, 09/13/05 - 12/14/05		237,778		237,732
CC USA Inc. 2.53% - 2.66%, 05/04/05 - 07/29/05		139,870		139,858
Commodore CDO Ltd. 2.55%, 12/12/05		17,484		17,484
Den Danske Bank NY 2.52% - 2.60%, 08/12/05 - 10/17/05		209,804		209,772
DEPFA Bank PLC 2.47%, 12/15/05		69,935		69,935
Dorada Finance Inc. 2.66%, 07/29/05		58,046		58,039
Fairway Finance LLC 2.55%, 03/14/05 - 06/20/05		104,902		104,901
Fifth Third Bancorp 2.57%, 02/23/064		139,870		139,870
Five Finance Inc. 2.62% - 2.64%, 04/29/05 - 02/27/06		90,915		90,919
General Electric Capital Corp. 2.69%, 03/09/06		31,471		31,514
General Electric Commercial Equipment Financing LLC 2.56%, 11/20/05		29,868		29,868
Hartford Life Global Funding Trust 2.58%, 02/15/06		69,935		69,935
HBOS Treasury Services PLC 2.55% - 2.56%, 01/10/06 - 01/24/06		209,804		209,805

54 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI SPAIN INDEX FUND

February 28, 2005

Security	Shares or Principal		Value
K2 USA LLC 2.55% - 2.64%, 06/10/05 - 02/15/06	$	314,707	$	314,710
Leafs LLC 2.60%, 01/20/06 - 02/21/064		73,432		73,431
Links Finance LLC 2.54% - 2.77%, 04/15/05 - 02/06/06		286,733		286,806
Lothian Mortgages PLC 2.61%, 01/24/06		139,870		139,870
MetLife Funding Inc. 2.58%, 03/06/06		104,902		104,902
National City Bank (Ohio) 2.52% - 2.58%, 06/10/05 - 08/09/05		174,837		174,824
Nationwide Building Society 2.58% - 2.64%, 01/06/06 - 01/27/064		258,759		258,814
Norddeutsche Landesbank 2.63%, 07/27/05		69,935		69,925
Northern Rock PLC 2.60% - 2.62%, 10/25/05 - 02/03/064		209,804		209,805
Permanent Financing PLC 2.54% - 2.57%, 03/10/05 - 09/12/05		188,824		188,824
Sedna Finance Inc. 2.56%, 01/10/06 - 01/17/06		38,464		38,456
Sigma Finance Inc. 2.54% - 2.79%, 08/17/05 - 01/09/06		356,667		356,685
Tango Finance Corp. 2.55% - 2.74%, 04/07/05 - 09/15/05		215,189		215,180
Wachovia Asset Securitization Inc. 2.64%, 03/25/05		209,804		209,804
Wells Fargo & Co. 2.56%, 03/15/064		34,967		34,972
WhistleJacket Capital LLC 2.45% - 2.57%, 06/15/05 - 01/17/06		244,772		244,750
White Pine Finance LLC 2.54% - 2.80%, 03/29/05 - 01/13/06		382,543		382,514
Winston Funding Ltd. 2.75%, 04/25/05		49,933		49,933
				5,348,548
MEDIUM-TERM NOTES3 – 0.10%
CC USA Inc. 1.29%, 04/15/054		69,935		69,934
				69,934
MONEY MARKET FUNDS3 – 0.54%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares5		320,071		320,071
BlackRock Temp Cash Money Market Fund		13,042		13,043
Short-Term Investment Co.– Prime Money Market Portfolio, Institutional Shares		26,388		26,388
				359,502
REPURCHASE AGREEMENTS3 – 4.07%
Bank of America N.A. Repurchase Agreements, dated 2/28/05, due 3/1/05, with a total maturity value of $1,573,648 and effective yields of 2.62% - 2.63%6	$	1,573,533		1,573,533
Merrill Lynch Government Securities Inc. Repurchase Agreement, dated 2/28/05, due 3/1/05, with a maturity value of $1,154,008 and an effective yield of 2.63%6		1,153,924		1,153,924
				2,727,457
TIME DEPOSITS3 – 3.61%
Abbey National Treasury Services PLC 1.39%, 04/08/05		48,954		48,954
Banco Bilbao Vizcaya Argentaria SA 2.50% - 2.51%, 03/21/05 - 03/22/05		104,902		104,902
BNP Paribas (New York) 2.78% - 3.03%, 07/11/05 - 08/23/05		97,909		97,909

SCHEDULES OF INVESTMENTS 55

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI SPAIN INDEX FUND

February 28, 2005

Security	Principal		Value
Credit Suisse First Boston 2.55%, 03/22/05	$	69,935	$	69,935
Deutsche Bank AG 2.51%, 03/01/05		116,465		116,465
First Tennessee Bank 2.53%, 03/14/05 - 03/21/05		174,837		174,837
HBOS Treasury Services PLC 1.24% - 2.50%, 03/22/05 - 04/01/05		114,693		114,693
Key Bank N.A. 2.51% - 2.55%, 03/01/05 - 03/18/05		419,609		419,609
Natexis Banques 2.50% - 2.98%, 03/22/05 - 08/18/05		122,386		122,386
Norddeutsche Landesbank 2.11%, 06/07/05		69,935		69,931
Royal Bank of Scotland 2.54%, 03/22/05		17,484		17,484
Societe Generale 2.53%, 03/22/05		6,993		6,993
Toronto - Dominion Bank 1.22% - 2.66%, 03/23/05 - 11/09/05		279,739		279,728
UBS AG 2.67%, 11/09/05		27,974		27,973
Washington Mutual Bank 2.55%, 03/21/05 - 03/22/05		351,700		321,700
Wells Fargo Bank N.A. 2.52% - 2.53%, 03/17/05 - 03/22/05		430,099		430,098
				2,423,597
U.S. GOVERNMENT AGENCY NOTES3 – 0.28%
Federal Home Loan Mortgage Corp. 1.63% - 2.06%, 04/15/05 - 05/31/05		83,819		83,657
Federal National Mortgage Association 2.33%, 07/22/05		104,902		103,933
				187,590
TOTAL SHORT-TERM INVESTMENTS (Cost: $14,526,503)				14,526,503
TOTAL INVESTMENTS IN SECURITIES – 121.59% (Cost: $66,301,772)				81,531,627
Other Assets, Less Liabilities – (21.59%)				(14,476,690	)
NET ASSETS – 100.00%			$	67,054,937

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

² Non-income earning security.

³ All or a portion of these securities represent an investment of securities lending collateral. See Note 5.

⁴ All or a portion of this security is exempt from registration pursuant to Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

⁵ The Fund’s investment adviser is an affiliate of the issuer. See Note 2.

⁶ Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 2.95% to 7.85% and maturity dates ranging from 8/1/08 to 1/1/44.

See notes to financial statements.

56 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI SWEDEN INDEX FUND

February 28, 2005

Security	Shares	Value
COMMON STOCKS – 99.93%
AGRICULTURE – 1.69%
Swedish Match AB	90,120	$	1,069,760
			1,069,760
AIRLINES – 0.37%
SAS AB1,2	20,440		236,640
			236,640
AUTO MANUFACTURERS – 8.33%
Scania AB Class B	26,280		1,201,600
Volvo AB Class A2	26,800		1,191,993
Volvo AB Class B2	62,800		2,894,412
			5,288,005
BANKS – 18.90%
Nordea AB2	589,840		6,223,673
Skandinaviska Enskilda Banken AB Class A2	134,480		2,611,281
Svenska Handelsbanken AB Class A2	129,200		3,161,980
			11,996,934
COMMERCIAL SERVICES – 2.07%
Securitas AB Class B	82,040		1,310,485
			1,310,485
COMPUTERS – 0.37%
WM-Data AB Class B	86,160		236,117
			236,117
COSMETICS & PERSONAL CARE – 0.29%
Oriflame Cosmetics SA SDR1	8,154		181,633
			181,633
DIVERSIFIED FINANCIAL SERVICES – 0.66%
D Carnegie AB	12,520		158,250
OM AB1,2	21,000		259,280
			417,530
ENGINEERING & CONSTRUCTION – 1.93%
Skanska AB Class B2	102,520		1,224,465
			1,224,465
FOOD – 0.37%
Axfood AB2	8,200		232,528
			232,528
FOREST PRODUCTS & PAPER – 4.51%
Billerud AB2	15,600		245,761
Holmen AB Class B2	14,760		495,338
Svenska Cellulosa AB Class B2	54,080		2,120,023
			2,861,122
HAND & MACHINE TOOLS – 4.01%
Sandvik AB2	58,280		2,545,165
			2,545,165
HEALTH CARE – PRODUCTS – 3.12%
Elekta AB Class B1	7,960		264,217
Gambro AB Class A	48,800		693,700
Gambro AB Class B2	26,200		372,437
Getinge AB Class B2	44,720		648,809
			1,979,163
HEALTH CARE – SERVICES – 0.51%
Capio AB1	21,160		324,050
			324,050
HOME FURNISHINGS – 2.99%
Electrolux AB Series B2	78,600		1,894,822
			1,894,822
INSURANCE – 2.39%
Skandia Forsakrings AB2	283,200		1,518,988
			1,518,988
IRON & STEEL – 0.98%
Svenskt Stal AB Class A	16,480		434,720
Svenskt Stal AB Class B2	7,400		189,780
			624,500
MACHINERY – CONSTRUCTION & MINING – 3.85%
Atlas Copco AB Class A2	30,960		1,547,161
Atlas Copco AB Class B	19,280		892,841
			2,440,002
MANUFACTURING – 1.29%
Alfa Laval AB	23,280		411,102
Trelleborg AB Class B2	21,600		408,341
			819,443
MEDIA – 1.50%
Eniro AB2	44,181		517,971
Modern Times Group AB Class B1	14,160		435,775
			953,746
METAL FABRICATE & HARDWARE – 4.36%
Assa Abloy AB Class B2	81,600		1,249,645

SCHEDULES OF INVESTMENTS 57

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI SWEDEN INDEX FUND

February 28, 2005

Security	Shares or Principal		Value
Hoganas AB Class B2		7,520	$	229,776
SKF AB Class B2		25,840		1,287,513
				2,766,934
OIL & GAS – 0.52%
Lundin Petroleum AB1		45,640		333,085
				333,085
REAL ESTATE – 1.49%
Castellum AB		11,640		397,456
Wihlborgs Fastigheter AB		24,120		547,885
				945,341
RETAIL – 7.30%
Hennes & Mauritz AB Class B2		131,120		4,630,907
				4,630,907
TELECOMMUNICATIONS – 26.13%
Tele2 AB Class B2		27,640		988,344
Telefonaktiebolaget LM Ericsson Class B1		4,087,400		12,099,811
TeliaSonera AB2		580,480		3,496,304
				16,584,459
TOTAL COMMON STOCKS (Cost: $ 49,403,850)				63,415,824
SHORT-TERM INVESTMENTS – 33.13%
COMMERCIAL PAPER3 – 7.80%
Amstel Funding Corp. 2.95%, 08/19/05	$	42,176		41,586
Amsterdam Funding Corp. 2.53%, 03/01/05 - 03/10/05		111,615		111,570
ANZ National Bank Ltd. 2.94%, 08/15/05		50,734		50,043
Barton Capital Corp. 2.53% - 2.54%, 03/07/05 - 03/17/05		224,505		224,325
Blue Ridge Asset Funding Corp. 2.53%, 03/23/05		111,615		111,442
Bryant Park Funding LLC 2.50%, 03/16/05		10,147		10,136
Chariot Funding LLC 2.54%, 03/21/05		101,468		101,325
Chesham Finance LLC 2.55%, 03/04/05		40,587		40,579
Corporate Asset Funding 2.55%, 03/24/05		50,734		50,651
CRC Funding LLC 2.53%, 03/11/05		25,367		25,349
Delaware Funding Corp. 2.53% - 2.54%, 03/09/05 - 03/22/05		188,164		187,955
DEPFA Bank PLC 2.28%, 05/03/05		50,734		50,532
Edison Asset Securitization 2.26% - 2.53%, 03/07/05 - 05/04/05		329,771		329,175
Fairway Finance LLC 2.53% - 2.54%, 03/09/05 - 03/22/05		96,731		96,627
Falcon Asset Securitization Corp. 2.53% - 2.54%, 03/14/05 - 03/18/05		391,222		390,765
Ford Credit Auto Receivables 2.28% - 2.55%, 03/15/05 - 04/27/05		235,609		235,175
Ford Credit Floorplan Motown 2.54% - 2.56%, 03/04/05 - 03/18/05		126,835		126,783
Fortis Funding LLC 2.35%, 05/09/05		142,055		141,415
General Electric Capital Corp. 2.53% - 2.74%, 03/08/05 - 07/07/05		223,230		222,651
Giro Funding US Corp. 2.54%, 03/14/05 - 03/18/05		122,321		122,191
Grampian Funding LLC 2.49% - 3.00%, 03/23/05 - 08/22/05		299,331		295,650
Jupiter Securitization Corp. 2.53%, 03/03/05 - 03/22/05		462,928		462,508
Kitty Hawk Funding Corp. 2.54%, 03/15/05		152,202		152,052

58 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI SWEDEN INDEX FUND

February 28, 2005

Security	Principal		Value
Liberty Street Funding Corp. 2.53% - 2.54%, 03/14/05 - 03/16/05	$	55,807	$	55,753
Moat Funding LLC 2.50%, 03/23/05		20,294		20,263
Nordea North America Inc. 2.74%, 07/11/05		50,734		50,225
Park Avenue Receivables Corp. 2.53%, 03/10/05 - 03/11/05		158,495		158,388
Park Granada LLC 2.55% - 2.58%, 03/18/05 - 03/21/05		71,028		70,938
Preferred Receivables Funding Corp. 2.53% - 2.54%, 03/14/05 - 03/21/05		215,598		215,300
Ranger Funding Co. LLC 2.54%, 03/04/05		30,174		30,167
Santander Central Hispano 2.75%, 07/08/05		126,835		125,587
Scaldis Capital LLC 2.75%, 07/08/05		25,395		25,145
Ticonderoga Master Funding Ltd. 2.54% - 2.57%, 03/21/05 - 03/24/05		172,078		171,826
Tulip Funding Corp. 2.54% - 2.55%, 03/01/05		169,377		169,376
UBS Finance (Delaware) 2.62%, 03/01/05		202,936		202,936
Windmill Funding Corp. 2.55%, 03/08/05		35,514		35,496
Yorktown Capital LLC 2.53%, 03/17/05		35,514		35,474
				4,947,359
FLOATING RATE NOTES3 – 12.23%
Allstate Life Global Funding II 2.58%, 01/10/064		46,675		46,677
American Express Centurion Bank 2.58%, 01/24/06		152,202		152,202
American Express Credit Corp. 2.68%, 10/26/05		202,936		203,003
Bank of Nova Scotia 2.52% - 2.57%, 09/26/05 - 01/03/06		65,954		65,938
Beta Finance Inc. 2.53% - 2.79%, 03/15/05 - 10/27/05		380,505		380,536
Canadian Imperial Bank of Commerce 2.52% - 2.61%, 09/13/05 - 12/14/05		344,991		344,923
CC USA Inc. 2.53% - 2.66%, 05/04/05 - 07/29/05		202,936		202,919
Commodore CDO Ltd. 2.55%, 12/12/05		25,367		25,368
Den Danske Bank NY 2.52% - 2.60%, 08/12/05 - 10/17/05		304,404		304,356
DEPFA Bank PLC 2.47%, 12/15/05		101,468		101,468
Dorada Finance Inc. 2.66%, 07/29/05		84,218		84,208
Fairway Finance LLC 2.55%, 03/14/05 - 06/20/05		152,202		152,200
Fifth Third Bancorp 2.57%, 02/23/064		202,936		202,936
Five Finance Inc. 2.62% - 2.64%, 04/29/05 - 02/27/06		131,908		131,915
General Electric Capital Corp. 2.69%, 03/09/06		45,661		45,724
General Electric Commercial Equipment Financing LLC 2.56%, 11/20/05		43,335		43,335
Hartford Life Global Funding Trust 2.58%, 02/15/06		101,468		101,468
HBOS Treasury Services PLC 2.55% - 2.56%, 01/10/06 - 01/24/06		304,404		304,404

SCHEDULES OF INVESTMENTS 59

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI SWEDEN INDEX FUND

February 28, 2005

Security	Shares or Principal		Value
K2 USA LLC 2.55% - 2.64%, 06/10/05 - 02/15/06	$	456,606	$	456,612
Leafs LLC 2.60%, 01/20/06 - 02/21/064		106,541		106,541
Links Finance LLC 2.54% - 2.77%, 04/15/05 - 02/06/06		416,019		416,126
Lothian Mortgages PLC 2.61%, 01/24/06		202,936		202,936
MetLife Funding Inc. 2.58%, 03/06/06		152,202		152,202
National City Bank (Ohio) 2.52% - 2.58%, 06/10/05 - 08/09/05		253,670		253,653
Nationwide Building Society 2.58% - 2.64%, 01/06/06 - 01/27/064		375,432		375,511
Norddeutsche Landesbank 2.63%, 07/27/05		101,468		101,454
Northern Rock PLC 2.60% - 2.62%, 10/25/05 - 02/03/064		304,404		304,404
Permanent Financing PLC 2.54% - 2.57%, 03/10/05 - 09/12/05		273,964		273,964
Sedna Finance Inc. 2.56%, 01/10/06 - 01/17/06		55,807		55,796
Sigma Finance Inc. 2.54% - 2.79%, 08/17/05 - 01/09/06		517,487		517,510
Tango Finance Corp. 2.55% - 2.74%, 04/07/05 - 09/15/05		312,217		312,204
Wachovia Asset Securitization Inc. 2.64%, 03/25/05		304,404		304,404
Wells Fargo & Co. 2.56%, 03/15/064		50,734		50,741
WhistleJacket Capital LLC 2.45% - 2.57%, 06/15/05 - 01/17/06		355,138		355,107
White Pine Finance LLC 2.54% - 2.80%, 03/29/05 - 01/13/06		555,030		554,989
Winston Funding Ltd. 2.75%, 04/25/05		72,448		72,448
				7,760,182
MEDIUM-TERM NOTES3 – 0.16%
CC USA Inc. 1.29%, 04/15/054		101,468		101,467
				101,467
MONEY MARKET FUNDS3 – 0.73%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares 5		409,701		409,701
BlackRock Temp Cash Money Market Fund		18,923		18,924
Short-Term Investment Co. – Prime Money Market Portfolio, Institutional Shares		38,286		38,286
				466,911
REPURCHASE AGREEMENTS3 – 6.24%
Bank of America N.A. Repurchase Agreements, dated 2/28/05, due 3/1/05, with a total maturity value of $2,283,197 and effective yields of 2.62% - 2.63%6	$	2,283,030		2,283,030
Merrill Lynch Government Securities Inc. Repurchase Agreement, dated 2/28/05, due 3/1/05, with a maturity value of $1,674,345 and an effective yield of 2.63%6		1,674,222		1,674,222
				3,957,252
TIME DEPOSITS3 – 5.54%
Abbey National Treasury Services PLC 1.39%, 04/08/05		71,028		71,027
Banco Bilbao Vizcaya Argentaria SA 2.50% - 2.51%, 03/21/05 - 03/22/05		152,202		152,202
BNP Paribas (New York) 2.78% - 3.03%, 07/11/05 - 08/23/05		142,055		142,056

60 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI SWEDEN INDEX FUND

February 28, 2005

Security	Principal		Value
Credit Suisse First Boston 2.55%, 03/22/05	$	101,468	$	101,468
Deutsche Bank AG 2.51%, 03/01/05		168,978		168,978
First Tennessee Bank 2.53%, 03/14/05 - 03/21/05		253,670		253,670
HBOS Treasury Services PLC 1.24% - 2.50%, 03/22/05 - 04/01/05		166,408		166,407
Key Bank N.A. 2.51% - 2.55%, 03/01/05 - 03/18/05		608,808		608,808
Natexis Banques 2.50% - 2.98%, 03/22/05 - 08/18/05		177,569		177,569
Norddeutsche Landesbank 2.11%, 06/07/05		101,468		101,463
Royal Bank of Scotland 2.54%, 03/22/05		25,367		25,368
Societe Generale 2.53%, 03/22/05		10,147		10,147
Toronto-Dominion Bank 1.22% - 2.66%, 03/23/05 - 11/09/05		405,872		405,854
UBS AG 2.67%, 11/09/05		40,587		40,584
Washington Mutual Bank 2.55%, 03/21/05 - 03/22/05		466,753		466,753
Wells Fargo Bank N.A. 2.52% - 2.53%, 03/17/05 - 03/22/05		624,028		624,027
				3,516,381
U.S. GOVERNMENT AGENCY NOTES3 – 0.43%
Federal Home Loan Mortgage Corp. 1.63% - 2.06%, 04/15/05 - 05/31/05		121,612		121,377
Federal National Mortgage Association 2.33%, 07/22/05		152,202		150,796
				272,173
TOTAL SHORT-TERM INVESTMENTS (Cost: $21,021,725)				21,021,725
TOTAL INVESTMENTS IN SECURITIES – 133.06% (Cost: $70,425,575)				84,437,549
Other Assets, Less Liabilities – (33.06%)				(20,977,981	)
NET ASSETS – 100.00%			$	63,459,568

SDR – Swedish Depositary Receipts

¹ Non-income earning security.

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

³ All or a portion of these securities represent an investment of securities lending collateral. See Note 5.

⁴ All or a portion of this security is exempt from registration pursuant to Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

⁵ The Fund’s investment adviser is an affiliate of the issuer. See Note 2.

⁶ Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 2.95% to 7.85% and maturity dates ranging from 8/1/08 to 1/1/44.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 61

Schedule of Investments (Unaudited)

iSHARES^® MSCI SWITZERLAND INDEX FUND

February 28, 2005

Security	Shares	Value
COMMON STOCKS – 98.41%
BANKS – 17.23%
Banque Cantonale Vaudoise	1,682	$	377,651
Credit Suisse Group1,2	70,644		3,089,912
Julius Baer Holding AG2	2,162		770,143
UBS AG Registered	71,253		6,208,487
Vontobel Holding AG Registered	17,400		450,777
			10,896,970
BUILDING MATERIALS – 4.12%
Geberit AG Registered	232		186,321
Holcim Ltd. Registered	36,337		2,419,329
			2,605,650
CHEMICALS – 8.50%
Ciba Specialty Chemicals AG Registered1	16,070		1,141,414
Clariant AG Registered	17,458		300,766
Givaudan SA Registered	2,639		1,784,402
Lonza Group AG Registered	4,526		283,559
Syngenta AG1,2	16,588		1,863,643
			5,373,784
COMMERCIAL SERVICES – 2.13%
Adecco SA Registered	13,254		726,223
Societe Generale de Surveillance Holding SA	841		623,851
			1,350,074
COMPUTERS – 0.44%
Logitech International SA Registered1,2	4,236		279,839
			279,839
ENGINEERING & CONSTRUCTION – 1.61%
ABB Ltd.1	166,553		1,015,427
			1,015,427
FOOD – 12.23%
Nestle SA Registered	27,782		7,737,215
			7,737,215
HAND & MACHINE TOOLS – 2.00%
Schindler Holding AG Participation Certificates	2,030		811,649
Schindler Holding AG Registered	1,073		453,338
			1,264,987
HEALTH CARE – PRODUCTS – 4.84%
Nobel Biocare Holding AG	3,248		709,624
Phonak Holding AG Registered	7,308		265,057
Straumann Holding AG Registered	1,073		259,447
Synthes Inc.1	15,080		1,829,655
			3,063,783
INSURANCE – 8.85%
Swiss Reinsurance Co.	35,989		2,649,449
Zurich Financial Services AG1	15,950		2,948,959
			5,598,408
LEISURE TIME – 0.02%
Kuoni Reisen Holding AG Registered	29		13,386
			13,386
MANUFACTURING – 0.39%
Sulzer AG Registered	580		244,421
			244,421
PHARMACEUTICALS – 26.59%
Novartis AG1	208,824		10,504,316
Roche Holding AG Genusschein2	48,111		5,089,462
Serono SA	1,653		1,220,479
			16,814,257
RETAIL – 6.48%
Compagnie Financiere Richemont AG Class A	58,000		1,840,674
Swatch Group (The) AG Class B2	6,554		912,919
Swatch Group (The) AG Registered	29,377		821,947
Valora Holding AG Registered	2,117		519,652
			4,095,192
TELECOMMUNICATIONS – 2.98%
Kudelski SA Bearer1	2,407		91,666
Swisscom AG Registered2	4,553		1,794,857
			1,886,523
TOTAL COMMON STOCKS (Cost: $50,807,617)			62,239,916

62 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI SWITZERLAND INDEX FUND

February 28, 2005

Security	Principal		Value
SHORT-TERM INVESTMENTS – 14.23%
COMMERCIAL PAPER3 – 3.34%
Amstel Funding Corp. 2.95%, 08/19/05	$	18,003	$	17,751
Amsterdam Funding Corp. 2.53%, 03/01/05 - 03/10/05		47,644		47,625
ANZ National Bank Ltd. 2.94%, 08/15/05		21,656		21,361
Barton Capital Corp. 2.53% - 2.54%, 03/07/05 - 03/17/05		95,832		95,754
Blue Ridge Asset Funding Corp. 2.53%, 03/23/05		47,644		47,570
Bryant Park Funding LLC 2.50%, 03/16/05		4,331		4,327
Chariot Funding LLC 2.54%, 03/21/05		43,313		43,251
Chesham Finance LLC 2.55%, 03/04/05		17,325		17,321
Corporate Asset Funding 2.55%, 03/24/05		21,656		21,622
CRC Funding LLC 2.53%, 03/11/05		10,828		10,821
Delaware Funding Corp. 2.53% - 2.54%, 03/09/05 - 03/22/05		80,320		80,231
DEPFA Bank PLC 2.28%, 05/03/05		21,656		21,570
Edison Asset Securitization 2.26% - 2.53%, 03/07/05 - 05/04/05		140,766		140,512
Fairway Finance LLC 2.53% - 2.54%, 03/09/05 - 03/22/05		41,291		41,247
Falcon Asset Securitization Corp. 2.53% - 2.54%, 03/14/05 - 03/18/05		166,997		166,804
Ford Credit Auto Receivables 2.28% - 2.55%, 03/15/05 - 04/27/05		100,572		100,387
Ford Credit Floorplan Motown 2.54% - 2.56%, 03/04/05 - 03/18/05		54,141		54,119
Fortis Funding LLC 2.35%, 05/09/05		60,638		60,364
General Electric Capital Corp. 2.53% - 2.74%, 03/08/05 - 07/07/05		95,288		95,041
Giro Funding US Corp. 2.54%, 03/14/05 - 03/18/05		52,214		52,158
Grampian Funding LLC 2.49% - 3.00%, 03/23/05 - 08/22/05		127,772		126,200
Jupiter Securitization Corp. 2.53%, 03/03/05 - 03/22/05		197,605		197,427
Kitty Hawk Funding Corp. 2.54%, 03/15/05		64,969		64,905
Liberty Street Funding Corp. 2.53% - 2.54%, 03/14/05 - 03/16/05		23,822		23,799
Moat Funding LLC 2.50%, 03/23/05		8,663		8,649
Nordea North America Inc. 2.74%, 07/11/05		21,656		21,439
Park Avenue Receivables Corp. 2.53%, 03/10/05 - 03/11/05		67,655		67,609
Park Granada LLC 2.55% - 2.58%, 03/18/05 - 03/21/05		30,319		30,280
Preferred Receivables Funding Corp. 2.53% - 2.54%, 03/14/05 - 03/21/05		92,030		91,903
Ranger Funding Co. LLC 2.54%, 03/04/05		12,880		12,877
Santander Central Hispano 2.75%, 07/08/05		54,141		53,608
Scaldis Capital LLC 2.75%, 07/08/05		10,840		10,733
Ticonderoga Master Funding Ltd. 2.54% - 2.57%, 03/21/05 - 03/24/05		73,453		73,345

SCHEDULES OF INVESTMENTS 63

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI SWITZERLAND INDEX FUND

February 28, 2005

Security	Principal		Value
Tulip Funding Corp. 2.54% - 2.55%, 03/01/05	$	72,300	$	72,300
UBS Finance (Delaware) 2.62%, 03/01/05		86,625		86,625
Windmill Funding Corp. 2.55%, 03/08/05		15,159		15,152
Yorktown Capital LLC 2.53%, 03/17/05		15,159		15,142
				2,111,829
FLOATING RATE NOTES3 – 5.24%
Allstate Life Global Funding II 2.58%, 01/10/064		19,924		19,924
American Express Centurion Bank 2.58%, 01/24/06		64,969		64,969
American Express Credit Corp. 2.68%, 10/26/05		86,625		86,654
Bank of Nova Scotia 2.52% - 2.57%, 09/26/05 - 01/03/06		28,153		28,146
Beta Finance Inc. 2.53% - 2.79%, 03/15/05 - 10/27/05		162,422		162,436
Canadian Imperial Bank of Commerce 2.52% - 2.61%, 09/13/05 - 12/14/05		147,263		147,233
CC USA Inc. 2.53% - 2.66%, 05/04/05 - 07/29/05		86,625		86,618
Commodore CDO Ltd. 2.55%, 12/12/05		10,828		10,828
Den Danske Bank NY 2.52% - 2.60%, 08/12/05 - 10/17/05		129,938		129,917
DEPFA Bank PLC 2.47%, 12/15/05		43,313		43,313
Dorada Finance Inc. 2.66%, 07/29/05		35,949		35,945
Fairway Finance LLC 2.55%, 03/14/05 - 06/20/05		64,969		64,969
Fifth Third Bancorp 2.57%, 02/23/064		86,625		86,625
Five Finance Inc. 2.62% - 2.64%, 04/29/05 - 02/27/06		56,306		56,308
General Electric Capital Corp. 2.69%, 03/09/06		19,491		19,518
General Electric Commercial Equipment Financing LLC 2.56%, 11/20/05		18,498		18,498
Hartford Life Global Funding Trust 2.58%, 02/15/06		43,313		43,313
HBOS Treasury Services PLC 2.55% - 2.56%, 01/10/06 - 01/24/06		129,938		129,939
K2 USA LLC 2.55% - 2.64%, 06/10/05 - 02/15/06		194,907		194,911
Leafs LLC 2.60%, 01/20/06 - 02/21/064		45,478		45,478
Links Finance LLC 2.54% - 2.77%, 04/15/05 - 02/06/06		177,582		177,628
Lothian Mortgages PLC 2.61%, 01/24/06		86,625		86,625
MetLife Funding Inc. 2.58%, 03/06/06		64,969		64,969
National City Bank (Ohio) 2.52% - 2.58%, 06/10/05 - 08/09/05		108,281		108,274
Nationwide Building Society 2.58% - 2.64%, 01/06/06 - 01/27/064		160,257		160,290
Norddeutsche Landesbank 2.63%, 07/27/05		43,313		43,306
Northern Rock PLC 2.60% - 2.62%, 10/25/05 - 02/03/064		129,938		129,938
Permanent Financing PLC 2.54% - 2.57%, 03/10/05 - 09/12/05		116,944		116,945
Sedna Finance Inc. 2.56%, 01/10/06 - 01/17/06		23,822		23,817

64 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI SWITZERLAND INDEX FUND

February 28, 2005

Security	Shares or Principal		Value
Sigma Finance Inc. 2.54% - 2.79%, 08/17/05 - 01/09/06	$	220,894	$	220,905
Tango Finance Corp. 2.55% - 2.74%, 04/07/05 - 09/15/05		133,273		133,268
Wachovia Asset Securitization Inc. 2.64%, 03/25/05		129,938		129,938
Wells Fargo & Co. 2.56%, 03/15/064		21,656		21,660
WhistleJacket Capital LLC 2.45% - 2.57%, 06/15/05 - 01/17/06		151,594		151,581
White Pine Finance LLC 2.54% - 2.80%, 03/29/05 - 01/13/06		236,920		236,903
Winston Funding Ltd. 2.75%, 04/25/05		30,925		30,925
				3,312,514
MEDIUM-TERM NOTES3 – 0.07%
CC USA Inc. 1.29%, 04/15/054		43,313		43,312
				43,312
MONEY MARKET FUNDS3 – 0.36%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares5		201,110		201,110
BlackRock Temp Cash Money Market Fund		8,077		8,077
Short-Term Investment Co.– Prime Money Market Portfolio, Institutional Shares		16,343		16,343
				225,530
REPURCHASE AGREEMENTS3 – 2.67%
Bank of America N.A. Repurchase Agreements, dated 2/28/05, due 3/1/05, with a total maturity value of $974,604 and effective yields of 2.62% - 2.63%.6	$	974,533		974,533
Merrill Lynch Government Securities Inc. Repurchase Agreement, dated 2/28/05, due 3/1/05, with a maturity value of $714,710 and an effective yield of 2.63%.6		714,658		714,658
				1,689,191
TIME DEPOSITS3 – 2.37%
Abbey National Treasury Services PLC 1.39%, 04/08/05		30,319		30,318
Banco Bilbao Vizcaya Argentaria SA 2.50% - 2.51%, 03/21/05 - 03/22/05		64,969		64,969
BNP Paribas (New York) 2.78% - 3.03%, 07/11/05 - 08/23/05		60,638		60,638
Credit Suisse First Boston 2.55%, 03/22/05		43,313		43,313
Deutsche Bank AG 2.51%, 03/01/05		72,130		72,130
First Tennessee Bank 2.53%, 03/14/05 - 03/21/05		108,281		108,281
HBOS Treasury Services PLC 1.24% - 2.50%, 03/22/05 - 04/01/05		71,033		71,033
Key Bank N.A. 2.51% - 2.55%, 03/01/05 - 03/18/05		259,875		259,876
Natexis Banques 2.50% - 2.98%, 03/22/05 - 08/18/05		75,797		75,797
Norddeutsche Landesbank 2.11%, 06/07/05		43,313		43,310
Royal Bank of Scotland 2.54%, 03/22/05		10,828		10,828
Societe Generale 2.53%, 03/22/05		4,331		4,331
Toronto-Dominion Bank 1.22% - 2.66%, 03/23/05 - 11/09/05		173,250		173,244

SCHEDULES OF INVESTMENTS 65

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI SWITZERLAND INDEX FUND

February 28, 2005

Security	Principal		Value
UBS AG 2.67%, 11/09/05	$	17,325	$	17,324
Washington Mutual Bank 2.55%, 03/21/05 - 03/22/05		199,238		199,238
Wells Fargo Bank N.A. 2.52% - 2.53%, 03/17/05 - 03/22/05		266,372		266,372
				1,501,002
U.S. GOVERNMENT AGENCY NOTES3 – 0.18%
Federal Home Loan Mortgage Corp. 1.63% - 2.06%, 04/15/05 - 05/31/05		51,911		51,811
Federal National Mortgage Association 2.33%, 07/22/05		64,969		64,369
				116,180
TOTAL SHORT-TERM INVESTMENTS (Cost: $8,999,558)				8,999,558
TOTAL INVESTMENTS IN SECURITIES – 112.64% (Cost: $59,807,175)				71,239,474
Other Assets, Less Liabilities – (12.64%)				(7,992,349	)
NET ASSETS – 100.00%			$	63,247,125

¹ Non-income earning security.

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

³ All or a portion of these securities represent an investment of securities lending collateral. See Note 5.

⁴ All or a portion of this security is exempt from registration pursuant to Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

⁵ The Fund’s investment adviser is an affiliate of the issuer. See Note 2.

⁶ Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 2.95% to 7.85% and maturity dates ranging from 8/1/08 to 1/1/44.

See notes to financial statements.

66 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI UNITED KINGDOM INDEX FUND

February 28, 2005

Security	Shares	Value
COMMON STOCKS – 99.52%
ADVERTISING – 0.64%
Aegis Group PLC	269,127	$	509,188
WPP Group PLC	273,870		3,159,075
			3,668,263
AEROSPACE & DEFENSE – 1.19%
BAE Systems PLC	740,061		3,648,347
Cobham PLC	27,081		695,158
Meggitt PLC	107,406		572,407
Rolls-Royce Group PLC1	375,462		1,879,871
			6,795,783
AGRICULTURE – 2.09%
British American Tobacco PLC	390,915		7,189,097
Imperial Tobacco Group PLC	176,562		4,719,275
			11,908,372
AIRLINES – 0.12%
British Airways PLC1	133,569		688,047
			688,047
AUTO PARTS & EQUIPMENT – 0.16%
GKN PLC	185,436		919,517
			919,517
BANKS – 20.56%
Barclays PLC2	1,562,895		17,004,618
HBOS PLC	953,496		15,221,661
HSBC Holdings PLC	2,717,739		45,427,214
Lloyds TSB Group PLC	1,361,394		12,839,464
Royal Bank of Scotland Group PLC	771,120		26,476,583
			116,969,540
BEVERAGES – 2.70%
Diageo PLC	733,635		10,461,495
SABMiller PLC	195,075		3,226,884
Scottish & Newcastle PLC	195,228		1,685,198
			15,373,577
BUILDING MATERIALS – 0.79%
BPB PLC	122,400		1,187,956
Hanson PLC	176,868		1,720,855
Pilkington PLC	263,007		614,098
RMC Group PLC	58,876		968,811
			4,491,720
CHEMICALS – 0.86%
BOC Group PLC	120,105		2,292,046
Imperial Chemical Industries PLC	295,290		1,555,230
Johnson Matthey PLC	54,621		1,063,933
			4,911,209
COMMERCIAL SERVICES – 1.73%
Aggreko PLC	61,812		194,616
Brambles Industries PLC	180,387		1,059,482
Bunzl PLC	109,242		1,052,363
Capita Group PLC	161,109		1,176,614
Davis Service Group PLC	50,184		419,415
De La Rue PLC	43,758		321,259
Group 4 Securicor PLC1	271,269		718,276
Hays PLC	409,965		1,059,863
Intertek Group PLC	38,709		520,303
Kidde PLC	208,233		666,653
Rank Group PLC	148,104		795,006
Rentokil Initial PLC	437,427		1,335,130
Serco Group PLC	113,220		543,434
			9,862,414
COMPUTERS – 0.11%
LogicaCMG PLC	176,562		615,410
			615,410
DISTRIBUTION & WHOLESALE – 0.66%
Inchcape PLC	18,054		725,926
Wolseley PLC	141,678		3,025,677
			3,751,603
DIVERSIFIED FINANCIAL SERVICES – 1.14%
AMVESCAP PLC	174,267		1,144,348
Cattles PLC	77,418		576,209
Close Brothers Group PLC	29,376		467,829
ICAP PLC	117,657		662,723
London Stock Exchange PLC	61,615		639,534
Man Group PLC	68,391		1,775,323
Provident Financial PLC	60,129		782,743
Schroders PLC	29,070		412,013
			6,460,722
ELECTRIC – 2.74%
International Power PLC1	362,100		1,249,903
National Grid Transco PLC	748,170		7,268,589

SCHEDULES OF INVESTMENTS 67

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI UNITED KINGDOM INDEX FUND

February 28, 2005

Security	Shares	Value
Scottish & Southern Energy PLC	207,468	$	3,505,798
Scottish Power PLC	449,820		3,551,495
			15,575,785
ELECTRONICS – 0.17%
Electrocomponents PLC	111,078		643,848
Premier Farnell PLC	95,472		334,148
			977,996
ENGINEERING & CONSTRUCTION – 0.72%
AMEC PLC	76,041		439,297
BAA PLC	258,111		3,022,030
Balfour Beatty PLC	100,827		622,776
			4,084,103
ENTERTAINMENT – 0.76%
EMI Group PLC	197,982		876,884
Hilton Group PLC	382,806		2,311,027
William Hill PLC	98,532		1,144,151
			4,332,062
FOOD – 4.44%
Cadbury Schweppes PLC	500,463		4,924,720
J Sainsbury PLC	332,622		1,828,714
Tate & Lyle PLC	99,909		1,003,339
Tesco PLC	1,882,818		11,067,579
Unilever PLC	670,293		6,424,874
			25,249,226
FOOD SERVICE – 0.45%
Compass Group PLC	528,462		2,549,237
			2,549,237
GAS – 0.74%
Centrica PLC	926,109		4,217,760
			4,217,760
HEALTH CARE-PRODUCTS – 0.46%
Smith & Nephew PLC	228,123		2,350,236
SSL International PLC	44,982		260,732
			2,610,968
HOLDING COMPANIES-DIVERSIFIED – 0.18%
Tomkins PLC	188,802		1,018,922
			1,018,922
HOME BUILDERS – 0.75%
Barratt Developments PLC	56,151		728,255
Bellway PLC	27,999		474,745
Berkeley Group Holdings (The) PLC	26,469		443,451
Persimmon PLC	67,779		1,015,461
Taylor Woodrow PLC	137,547		794,623
Wimpey (George) PLC	92,259		835,017
			4,291,552
HOME FURNISHINGS – 0.07%
MFI Furniture Group PLC	153,000		397,017
			397,017
HOUSEHOLD PRODUCTS & WARES – 0.83%
Reckitt Benckiser PLC	149,787		4,730,495
			4,730,495
INSURANCE – 3.21%
Aviva PLC	552,177		6,890,361
Friends Provident PLC	459,918		1,454,703
Legal & General Group PLC	1,572,993		3,574,353
Prudential PLC	572,067		5,210,707
Royal & Sun Alliance Insurance Group PLC	715,734		1,157,763
			18,287,887
IRON & STEEL – 0.20%
Corus Group PLC1	970,632		1,112,142
			1,112,142
LEISURE TIME – 0.42%
Carnival PLC	41,157		2,369,755
			2,369,755
LODGING – 0.35%
InterContinental Hotels Group PLC	154,643		1,984,810
			1,984,810
MANUFACTURING – 0.89%
BBA Group PLC	110,466		657,318
Cookson Group PLC1	474,759		319,985
FKI PLC	153,153		345,801
IMI PLC	84,150		661,560
Invensys PLC1	1,382,070		465,754
Novar PLC	108,171		396,821
Smiths Group PLC	136,017		2,236,865
			5,084,104
MEDIA – 3.40%
British Sky Broadcasting Group PLC	304,470		3,321,491
Daily Mail & General Trust PLC Class A	72,522		1,023,676

68 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI UNITED KINGDOM INDEX FUND

February 28, 2005

Security	Shares	Value
EMAP PLC	63,342	$	1,029,492
ITV PLC	1,009,647		2,255,362
Pearson PLC	194,769		2,392,925
Reed Elsevier PLC	309,519		3,156,036
Reuters Group PLC	347,310		2,760,533
Trinity Mirror PLC	71,145		946,697
United Business Media PLC	82,008		863,443
Yell Group	172,431		1,571,428
			19,321,083
MINING – 4.71%
Anglo American PLC	345,933		8,640,136
BHP Billiton PLC	600,066		8,972,823
Rio Tinto PLC	259,641		9,174,829
			26,787,788
OIL & GAS – 15.01%
BG Group PLC	855,576		6,726,256
BP PLC	5,235,201		56,657,617
Shell Transport & Trading Co. PLC	2,343,654		22,024,292
			85,408,165
PACKAGING & CONTAINERS – 0.21%
Rexam PLC	136,017		1,200,940
			1,200,940
PHARMACEUTICALS – 8.94%
Alliance Unichem PLC	59,364		831,658
AstraZeneca PLC	401,319		15,842,810
GlaxoSmithKline PLC	1,428,561		34,194,680
			50,869,148
REAL ESTATE – 1.50%
British Land Co. PLC	124,389		2,064,799
Great Portland Estates PLC	29,682		192,482
Hammerson PLC	69,003		1,175,980
Land Securities Group PLC	112,761		2,985,728
Liberty International PLC	57,987		1,094,881
Slough Estates PLC	100,827		1,002,364
			8,516,234
RETAIL – 3.92%
Boots Group PLC	180,081		2,300,898
Dixons Group PLC	467,262		1,444,189
Enterprise Inns PLC	84,456		1,218,964
GUS PLC	247,095		4,482,326
HMV Group PLC	92,565		478,608
Kesa Electricals PLC	131,629		827,606
Kingfisher PLC	564,723		3,170,025
Marks & Spencer Group PLC	400,248		2,701,505
Mitchells & Butlers PLC	128,267		852,163
Next PLC	63,648		1,888,757
Punch Taverns PLC	60,282		799,826
Signet Group PLC	422,892		912,087
Whitebread PLC	71,298		1,239,120
			22,316,074
SEMICONDUCTORS – 0.12%
ARM Holdings PLC	319,923		665,362
			665,362
SOFTWARE – 0.32%
Misys PLC	125,766		552,188
Sage Group PLC	317,934		1,264,287
			1,816,475
TELECOMMUNICATIONS – 9.18%
BT Group PLC	2,073,303		8,324,487
Cable & Wireless PLC	570,078		1,407,927
Marconi Corp. PLC1	48,960		535,052
Vodafone Group PLC	16,005,942		41,995,850
			52,263,316
TRANSPORTATION – 0.89%
Arriva PLC	45,900		481,945
Associated British Ports Holdings PLC	77,112		707,577
Exel PLC	74,205		1,163,892
FirstGroup PLC	99,756		670,910
National Express Group PLC	32,895		562,195
Peninsular & Oriental Steam
Navigation Co. (The)	177,786		1,075,018
Stagecoach Group PLC	197,791		430,401
			5,091,938
VENTURE CAPITAL – 0.35%
3i Group PLC	148,257		1,982,787
			1,982,787
WATER – 0.84%
Kelda Group PLC	91,035		1,057,096
Severn Trent PLC	83,844		1,473,308

SCHEDULES OF INVESTMENTS 69

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI UNITED KINGDOM INDEX FUND

February 28, 2005

Security	Shares or Principal		Value
United Utilities PLC3		134,640	$	1,608,809
United Utilities PLC Class A		75,305		645,316
				4,784,529
TOTAL COMMON STOCKS (Cost: $495,860,663)				566,313,837
SHORT-TERM INVESTMENTS – 0.30%
COMMERCIAL PAPER4 – 0.07%
Amstel Funding Corp. 2.95%, 08/19/05	$	3,377		3,330
Amsterdam Funding Corp. 2.53%, 03/01/05 - 03/10/05		8,938		8,935
ANZ National Bank Ltd. 2.94%, 08/15/05		4,063		4,007
Barton Capital Corp. 2.53% - 2.54%, 03/07/05 - 03/17/05		17,977		17,963
Blue Ridge Asset Funding Corp. 2.53%, 03/23/05		8,938		8,924
Bryant Park Funding LLC 2.50%, 03/16/05		813		812
Chariot Funding LLC 2.54%, 03/21/05		8,125		8,114
Chesham Finance LLC 2.55%, 03/04/05		3,250		3,249
Corporate Asset Funding 2.55%, 03/24/05		4,063		4,056
CRC Funding LLC 2.53%, 03/11/05		2,031		2,030
Delaware Funding Corp. 2.53% - 2.54%, 03/09/05 - 03/22/05		15,067		15,051
DEPFA Bank PLC 2.28%, 05/03/05		4,063		4,046
Edison Asset Securitization 2.26% - 2.53%, 03/07/05 - 05/04/05		26,406		26,358
Fairway Finance LLC 2.53% - 2.54%, 03/09/05 - 03/22/05		7,746		7,738
Falcon Asset Securitization Corp. 2.53% - 2.54%, 03/14/05 - 03/18/05		31,327		31,292
Ford Credit Auto Receivables 2.28% - 2.55%, 03/15/05 - 04/27/05		18,866		18,832
Ford Credit Floorplan Motown 2.54% - 2.56%, 03/04/05 - 03/18/05		10,156		10,152
Fortis Funding LLC 2.35%, 05/09/05		11,375		11,324
General Electric Capital Corp. 2.53% - 2.74%, 03/08/05 - 07/07/05		17,875		17,829
Giro Funding US Corp. 2.54%, 03/14/05 - 03/18/05		9,795		9,784
Grampian Funding LLC 2.49% - 3.00%, 03/23/05 - 08/22/05		23,969		23,674
Jupiter Securitization Corp. 2.53%, 03/03/05 - 03/22/05		37,069		37,036
Kitty Hawk Funding Corp. 2.54%, 03/15/05		12,188		12,176
Liberty Street Funding Corp. 2.53% - 2.54%, 03/14/05 - 03/16/05		4,469		4,465
Moat Funding LLC 2.50%, 03/23/05		1,625		1,623
Nordea North America Inc. 2.74%, 07/11/05		4,063		4,022
Park Avenue Receivables Corp. 2.53%, 03/10/05 - 03/11/05		12,691		12,683
Park Granada LLC 2.55% - 2.58%, 03/18/05 - 03/21/05		5,688		5,681
Preferred Receivables Funding Corp. 2.53% - 2.54%, 03/14/05 - 03/21/05		17,264		17,240
Ranger Funding Co. LLC 2.54%, 03/04/05		2,416		2,416
Santander Central Hispano 2.75%, 07/08/05		10,156		10,056

70 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI UNITED KINGDOM INDEX FUND

February 28, 2005

Security	Principal		Value
Scaldis Capital LLC 2.75%, 07/08/05	$	2,034	$	2,013
Ticonderoga Master Funding Ltd. 2.54% - 2.57%, 03/21/05 - 03/24/05		13,779		13,759
Tulip Funding Corp. 2.54% - 2.55%, 03/01/05		13,563		13,563
UBS Finance (Delaware) 2.62%, 03/01/05		16,250		16,250
Windmill Funding Corp. 2.55%, 03/08/05		2,844		2,842
Yorktown Capital LLC 2.53%, 03/17/05		2,844		2,841
				396,166
FLOATING RATE NOTES4 – 0.11%
Allstate Life Global Funding II 2.58%, 01/10/065		3,738		3,738
American Express Centurion Bank 2.58%, 01/24/06		12,188		12,188
American Express Credit Corp. 2.68%, 10/26/05		16,250		16,255
Bank of Nova Scotia 2.52% - 2.57%, 09/26/05 - 01/03/06		5,281		5,280
Beta Finance Inc. 2.53% - 2.79%, 03/15/05 - 10/27/05		30,469		30,472
Canadian Imperial Bank of Commerce 2.52% - 2.61%, 09/13/05 - 12/14/05		27,625		27,620
CC USA Inc. 2.53% - 2.66%, 05/04/05 - 07/29/05		16,250		16,249
Commodore CDO Ltd. 2.55%, 12/12/05		2,031		2,031
Den Danske Bank NY 2.52% - 2.60%, 08/12/05 - 10/17/05		24,375		24,371
DEPFA Bank PLC 2.47%, 12/15/05		8,125		8,125
Dorada Finance Inc. 2.66%, 07/29/05		6,744		6,743
Fairway Finance LLC 2.55%, 03/14/05 - 06/20/05		12,188		12,187
Fifth Third Bancorp 2.57%, 02/23/065		16,250		16,250
Five Finance Inc. 2.62% - 2.64%, 04/29/05 - 02/27/06		10,563		10,563
General Electric Capital Corp. 2.69%, 03/09/06		3,656		3,661
General Electric Commercial Equipment Financing LLC 2.56%, 11/20/05		3,470		3,470
Hartford Life Global Funding Trust 2.58%, 02/15/06		8,125		8,125
HBOS Treasury Services PLC 2.55% - 2.56%, 01/10/06 - 01/24/06		24,375		24,375
K2 USA LLC 2.55% - 2.64%, 06/10/05 - 02/15/06		36,563		36,563
Leafs LLC 2.60%, 01/20/06 - 02/21/065		8,531		8,532
Links Finance LLC 2.54% - 2.77%, 04/15/05 - 02/06/06		33,313		33,321
Lothian Mortgages PLC 2.61%, 01/24/06		16,250		16,250
MetLife Funding Inc. 2.58%, 03/06/06		12,188		12,188
National City Bank (Ohio) 2.52% - 2.58%, 06/10/05 - 08/09/05		20,313		20,311
Nationwide Building Society 2.58% - 2.64%, 01/06/06 - 01/27/065		30,063		30,069
Norddeutsche Landesbank 2.63%, 07/27/05		8,125		8,124
Northern Rock PLC 2.60% - 2.62%, 10/25/05 - 02/03/065		24,375		24,375

SCHEDULES OF INVESTMENTS 71

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI UNITED KINGDOM INDEX FUND

February 28, 2005

Security	Shares or Principal		Value
Permanent Financing PLC 2.54% - 2.57%, 03/10/05 - 09/12/05	$	21,938	$	21,937
Sedna Finance Inc. 2.56%, 01/10/06 - 01/17/06		4,469		4,468
Sigma Finance Inc. 2.54% - 2.79%, 08/17/05 - 01/09/06		41,438		41,440
Tango Finance Corp. 2.55% - 2.74%, 04/07/05 - 09/15/05		25,001		25,001
Wachovia Asset Securitization Inc. 2.64%, 03/25/05		24,375		24,376
Wells Fargo & Co. 2.56%, 03/15/065		4,063		4,063
WhistleJacket Capital LLC 2.45% - 2.57%, 06/15/05 - 01/17/06		28,438		28,434
White Pine Finance LLC 2.54% - 2.80%, 03/29/05 - 01/13/06		44,444		44,442
Winston Funding Ltd. 2.75%, 04/25/05		5,801		5,801
				621,398
MEDIUM-TERM NOTES4 – 0.00%
CC USA Inc. 1.29%, 04/15/055		8,125		8,125
				8,125
MONEY MARKET FUNDS4 – 0.01%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares2		38,775		38,775
BlackRock Temp Cash Money Market Fund		1,515		1,515
Short-Term Investment Co.– Prime Money Market Portfolio, Institutional Shares		3,066		3,066
				43,356
REPURCHASE AGREEMENTS4 – 0.06%
Bank of America N.A. Repurchase Agreements, dated 2/28/05, due 3/1/05, with a total maturity value of $182,826 and effective yields of 2.62% - 2.63%.6		182,813		182,813
Merrill Lynch Government Securities Inc. Repurchase Agreement, dated 2/28/05, due 3/1/05, with a maturity value of $134,073 and an effective yield of 2.63%.6		134,063		134,063
				316,876
TIME DEPOSITS4 – 0.05%
Abbey National Treasury Services PLC 1.39%, 04/08/05		5,688		5,671
Banco Bilbao Vizcaya Argentaria SA 2.50% - 2.51%, 03/21/05 - 03/22/05		12,188		12,188
BNP Paribas (New York) 2.78% - 3.03%, 07/11/05 - 08/23/05		11,375		11,376
Credit Suisse First Boston 2.55%, 03/22/05		8,125		8,125
Deutsche Bank AG 2.51%, 03/01/05		13,531		13,531
First Tennessee Bank 2.53%, 03/14/05 - 03/21/05		20,313		20,313
HBOS Treasury Services PLC 1.24% - 2.50%, 03/22/05 - 04/01/05		13,325		13,325
Key Bank N.A. 2.51% - 2.55%, 03/01/05 - 03/18/05		48,750		48,750
Natexis Banques 2.50% - 2.98%, 03/22/05 - 08/18/05		14,219		14,219
Norddeutsche Landesbank 2.11%, 06/07/05		8,125		8,125
Royal Bank of Scotland 2.54%, 03/22/05		2,031		2,031

72 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI UNITED KINGDOM INDEX FUND

February 28, 2005

Security	Principal		Value
Societe Generale 2.53%, 03/22/05	$	813	$	813
Toronto-Dominion Bank 1.22% - 2.66%, 03/23/05 - 11/09/05		32,500		32,498
UBS AG 2.67%, 11/09/05		3,250		3,250
Washington Mutual Bank 2.55%, 03/21/05 - 03/22/05		37,376		37,376
Wells Fargo Bank N.A. 2.52% - 2.53%, 03/17/05 - 03/22/05		49,969		49,969
				281,560
U.S. GOVERNMENT AGENCY NOTES4 – 0.00%
Federal Home Loan Mortgage Corp. 1.63% - 2.06%, 04/15/05 - 05/31/05		9,738		9,719
Federal National Mortgage Association 2.33%, 07/22/05		12,188		12,075
				21,794
TOTAL SHORT-TERM INVESTMENTS (Cost: $1,689,275)				1,689,275
TOTAL INVESTMENTS IN SECURITIES – 99.82% (Cost: $497,549,938)				568,003,112
Other Assets, Less Liabilities – 0.18%				1,025,931
NET ASSETS – 100.00%			$	569,029,043

¹ Non-income earning security.

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

³ All or a portion of this security represents a security on loan. See Note 5.

⁴ All or a portion of these securities represent an investment of securities lending collateral. See Note 5.

⁵ All or a portion of this security is exempt from registration pursuant to Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

⁶ Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 2.95% to 7.85% and maturity dates ranging from 8/1/08 to 1/1/44.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 73

Statements of Assets and Liabilities (Unaudited)

iSHARES^®, INC.

February 28, 2005

	iShares MSCI
	Austria Index Fund			Belgium Index Fund			EMU Index Fund			France Index Fund			Germany Index Fund			Italy Index Fund
ASSETS
Investments, at cost:
Unaffiliated issuers	$	170,792,398		$	71,494,826		$	587,608,526		$	68,665,838		$	215,359,053		$	45,829,851
Affiliated issuersa	$	527,148		$	536,315		$	3,717,900		$	393,714		$	1,164,616		$	343,524
Foreign currencies, at cost	$	347,348		$	70,148		$	206,453		$	45,830		$	113,919		$	10,488
Investments in securities, at value (including securities on loanb) (Note 1):
Unaffiliated issuers	$	210,661,511		$	82,293,391		$	680,438,996		$	73,934,841		$	210,935,229		$	54,756,297
Affiliated issuersa		527,148			536,315			3,717,900			393,714			1,164,616			343,524
Foreign currencies, at value		347,631			69,996			212,087			47,002			117,121			10,798
Receivables:
Investment securities sold		268,916			—			3,469,369			270,305			1,406,345			152,089
Dividends and interest		54,040			21,958			540,344			64,120			19,349			71,668
Capital shares sold		—			—			159,344			—			—			—
Total Assets		211,859,246			82,921,660			688,538,040			74,709,982			213,642,660			55,334,376
LIABILITIES
Payables:
Investment securities purchased		425,372						3,105,655			235,866			1,364,995			120,225
Collateral for securities on loan (Note 5)		22,543,094			26,385,172			178,021,871			20,200,283			56,419,809			16,462,493
Investment advisory fees (Note 2)		170,658			51,045			442,110			57,004			144,266			33,086
Total Liabilities		23,139,124			26,436,217			181,569,636			20,493,153			57,929,070			16,615,804
NET ASSETS	$	188,720,122		$	56,485,443		$	506,968,404		$	54,216,829		$	155,713,590		$	38,718,572
Net assets consist of:
Paid-in capital	$	142,247,228		$	48,690,299		$	431,915,378		$	50,006,791		$	195,305,188		$	35,176,778
Undistributed (distributions in excess of) net investment income (accumulated net investment loss)		(495,812	)		(335,040	)		79,797			150,972			24,518			(28,848	)
Undistributed net realized gain (accumulated net realized loss)		7,096,470			(2,672,620	)		(17,890,713	)		(1,216,411	)		(35,195,860	)		(5,376,774	)
Net unrealized appreciation (depreciation) on investments and translation of assets and liabilities in foreign currencies		39,872,236			10,802,804			92,863,942			5,275,477			(4,420,256	)		8,947,416
NET ASSETS	$	188,720,122		$	56,485,443		$	506,968,404		$	54,216,829		$	155,713,590		$	38,718,572
Shares outstanding		7,800,000			2,960,000			6,850,000			2,200,000			8,400,000			1,500,000
Net asset value per share	$	24.19		$	19.08		$	74.01		$	24.64		$	18.54		$	25.81

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

^b Securities on loan with market values of $21,453,990, $25,117,695, $169,381,192, $19,228,988, $53,716,178 and $15,616,130, respectively. See Note 5.

See notes to financial statements.

74 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities (Unaudited) (Continued)

iSHARES^®, INC .

February 28, 2005

	iShares MSCI
	Netherlands Index Fund			Spain Index Fund		Sweden Index Fund			Switzerland Index Fund			United Kingdom Index Fund
ASSETS
Investments, at cost:
Unaffiliated issuers	$	56,595,735		$	65,981,701	$	70,015,874		$	59,606,065		$	483,793,960
Affiliated issuersa	$	217,506		$	320,071	$	409,701		$	201,110		$	13,755,978
Foreign currencies, at cost	$	38,147		$	50,093	$	59,370		$	11,454		$	939,156
Investments in securities, at value (including securities on loanb) (Note 1):
Unaffiliated issuers	$	61,418,304		$	81,211,556	$	84,027,848		$	71,038,364		$	550,959,719
Affiliated issuersa		217,506			320,071		409,701			201,110			17,043,393
Foreign currencies, at value		37,163			51,263		59,296			11,342			960,985
Receivables:
Investment securities sold		71,926			482,981		1,043,907			476,806			1,278,456
Dividends and interest		224,206			6,266		3,189			112,716			2,344,546
Capital shares sold		—			—		—			864,806			—
Total Assets		61,969,105			82,072,137		85,543,941			72,705,144			572,587,099
LIABILITIES
Payables:
Investment securities purchased		59,386			471,247		1,008,478			433,269			1,340,653
Collateral for securities on loan (Note 5)		10,211,716			14,486,156		21,017,890			8,971,683			1,683,000
Investment advisory fees (Note 2)		43,080			59,797		58,005			53,067			534,403
Total Liabilities		10,314,182			15,017,200		22,084,373			9,458,019			3,558,056
NET ASSETS	$	51,654,923		$	67,054,937	$	63,459,568		$	63,247,125		$	569,029,043
Net assets consist of:
Paid-in capital	$	54,952,595		$	49,306,034	$	56,825,296		$	58,444,027		$	506,630,125
Undistributed net investment income (accumulated net investment loss)		172,343			269,627		(130,467	)		(118,002	)		1,710,680
Undistributed net realized gain (accumulated net realized loss)		(8,297,152	)		2,248,178		(7,247,046	)		(6,531,765	)		(9,831,075	)
Net unrealized appreciation on investments and translation of assets and liabilities in foreign currencies		4,827,137			15,231,098		14,011,785			11,452,865			70,519,313
NET ASSETS	$	51,654,923		$	67,054,937	$	63,459,568		$	63,247,125		$	569,029,043
Shares outstanding		2,650,000			1,875,000		3,000,000			3,625,000			30,600,000
Net asset value per share	$	19.49		$	35.76	$	21.15		$	17.45		$	18.60

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

^b Securities on loan with market values of $9,712,982, $13,779,653, $19,992,846, $8,543,161 and $1,598,831, respectively. See Note 5.

See notes to financial statements.

FINANCIAL STATEMENTS 75

Statements of Operations (Unaudited)

iSHARES^®, INC.

For the six months ended February 28, 2005

	iShares MSCI
	Austria Index Fund			Belgium Index Fund			EMU Index Fund			France Index Fund			Germany Index Fund			Italy Index Fund
NET INVESTMENT INCOME
Dividendsa	$	—		$	62,635		$	2,329,897		$	417,945		$	340,916		$	123,350
Interest from affiliated issuersb		799			318			1,595			326			546			183
Securities lending incomec		11,304			13,027			147,208			27,390			47,900			17,080
Total investment income		12,103			75,980			2,478,700			445,661			389,362			140,613
EXPENSES (Note 2)
Investment advisory fees		346,426			122,600			1,163,556			180,692			364,844			92,968
Total expenses		346,426			122,600			1,163,556			180,692			364,844			92,968
Net investment income (loss)		(334,323	)		(46,620	)		1,315,144			264,969			24,518			47,645
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments		241,581			28,307			(2,406,933	)		(465,010	)		(1,700,271	)		(133,239	)
In-kind redemptions		10,388,457			362,808			1,784,895			5,873,067			—			—
Foreign currency transactions		1,452			316			26,398			(10,342	)		(516	)		8,861
Net realized gain (loss)		10,631,490			391,431			(595,640	)		5,397,715			(1,700,787	)		(124,378	)
Net change in unrealized appreciation (depreciation) on:
Investments		27,926,174			9,857,512			91,546,552			6,643,764			27,617,205			8,545,994
Translation of assets and liabilities in foreign currencies		2,451			1,037			52,876			22,434			9,470			6,950
Net change in unrealized appreciation (depreciation)		27,928,625			9,858,549			91,599,428			6,666,198			27,626,675			8,552,944
Net realized and unrealized gain		38,560,115			10,249,980			91,003,788			12,063,913			25,925,888			8,428,566
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	38,225,792		$	10,203,360		$	92,318,932		$	12,328,882		$	25,950,406		$	8,476,211

^a Net of foreign withholding tax of $—, $5,189, $36,157, $7,267, $5,788 and $797, respectively.

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

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

See notes to financial statements.

76 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations (Unaudited) (Continued)

iSHARES^®, INC .

For the six months ended February 28, 2005

	iShares MSCI
	Netherlands Index Fund			Spain Index Fund		Sweden Index Fund			Switzerland Index Fund			United Kingdom Index Fund
NET INVESTMENT INCOME
Dividendsa	$	271,667		$	697,344	$	—		$	21,208		$	6,732,247
Dividends from affiliated issuersb		—			—		—			—			523,062
Interest from affiliated issuersb		205			365		139			156			2,228
Securities lending incomec		7,580			22,864		10,998			1,792			8,222
Total investment income		279,452			720,573		11,137			23,156			7,265,759
EXPENSES (Note 2)
Investment advisory fees		104,452			156,691		139,090			141,158			1,523,796
Stock dividend taxes		—			—		2,514			—			—
Total expenses		104,452			156,691		141,604			141,158			1,523,796
Net investment income (loss)		175,000			563,882		(130,467	)		(118,002	)		5,741,963
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments		(116,374	)		334,538		(187,500	)		154,420			(5,403,072	)
Investments in affiliated issuersb		—			—		—			—			1,677,583
In-kind redemptions		—			6,546,984		—			592,584			21,004,746
Foreign currency transactions		5,927			3,511		2,256			(744	)		3,113
Net realized gain (loss)		(110,447	)		6,885,033		(185,244	)		746,260			17,282,370
Net change in unrealized appreciation (depreciation) on:
Investments		8,510,575			6,819,878		9,673,773			8,241,779			73,554,127
Translation of assets and liabilities in foreign currencies		4,530			1,619		(36	)		11,079			108,271
Net change in unrealized appreciation (depreciation)		8,515,105			6,821,497		9,673,737			8,252,858			73,662,398
Net realized and unrealized gain		8,404,658			13,706,530		9,488,493			8,999,118			90,944,768
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	8,579,658		$	14,270,412	$	9,358,026		$	8,881,116		$	96,686,731

^a Net of foreign withholding tax of $1,265, $20,154, $—, $— and $—, respectively.

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

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

See notes to financial statements.

FINANCIAL STATEMENTS 77

Statements of Changes in Net Assets

iSHARES^®, INC.

	iShares MSCI Austria Index Fund						iShares MSCI Belgium Index Fund						iShares MSCI EMU Index Fund
	For the six months ended February 28, 2005 (Unaudited)			For the year ended August 31, 2004			For the six months ended February 28, 2005 (Unaudited)			For the year ended August 31, 2004			For the six months ended February 28, 2005 (Unaudited)			For the year ended August 31, 2004
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss)	$	(334,323	)	$	498,538		$	(46,620	)	$	525,871		$	1,315,144		$	6,589,669
Net realized gain (loss)		10,631,490			3,919,431			391,431			2,236,862			(595,640	)		8,857,335
Net change in unrealized appreciation (depreciation)		27,928,625			8,637,559			9,858,549			2,626,962			91,599,428			19,792,119
Net increase in net assets resulting from operations		38,225,792			13,055,528			10,203,360			5,389,695			92,318,932			35,239,123
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(642,119	)		(272,938	)		(821,720	)		(884,836	)		(7,926,598	)		(3,047,220	)
Total distributions to shareholders		(642,119	)		(272,938	)		(821,720	)		(884,836	)		(7,926,598	)		(3,047,220	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		110,941,441			32,913,587			24,684,879			19,364,816			102,208,449			175,480,082
Cost of shares redeemed		(17,725,212	)		(10,064,261	)		(2,393,681	)		(20,928,283	)		(6,238,133	)		(46,454,697	)
Net increase (decrease) in net assets from capital share transactions		93,216,229			22,849,326			22,291,198			(1,563,467	)		95,970,316			129,025,385
INCREASE IN NET ASSETS		130,799,902			35,631,916			31,672,838			2,941,392			180,362,650			161,217,288
NET ASSETS:
Beginning of period		57,920,220			22,288,304			24,812,605			21,871,213			326,605,754			165,388,466
End of period	$	188,720,122		$	57,920,220		$	56,485,443		$	24,812,605		$	506,968,404		$	326,605,754
Undistributed net investment income (accumulated net investment loss) included in net assets at end of period	$	(495,812	)	$	480,630		$	(335,040	)	$	533,300		$	79,797		$	6,691,251
SHARES ISSUED AND REDEEMED:
Shares sold		5,200,000			2,100,000			1,440,000			1,360,000			1,450,000			2,950,000
Shares redeemed		(800,000	)		(800,000	)		(160,000	)		(1,640,000	)		(100,000	)		(750,000	)
Net increase (decrease) in shares outstanding		4,400,000			1,300,000			1,280,000			(280,000	)		1,350,000			2,200,000

See notes to financial statements.

78 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets

iSHARES^®, INC.

	iShares MSCI France Index Fund						iShares MSCI Germany Index Fund						iShares MSCI Italy Index Fund
	For the six months ended February 28, 2005 (Unaudited)			For the year ended August 31, 2004			For the six months ended February 28, 2005 (Unaudited)			For the year ended August 31, 2004			For the six months ended February 28, 2005 (Unaudited)			For the year ended August 31, 2004
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	264,969		$	698,891		$	24,518		$	1,574,590		$	47,645		$	777,612
Net realized gain (loss)		5,397,715			1,787,933			(1,700,787	)		9,845,575			(124,378	)		449,897
Net change in unrealized appreciation (depreciation)		6,666,198			8,599,182			27,626,675			9,717,674			8,552,944			4,880,596
Net increase in net assets resulting from operations		12,328,882			11,086,006			25,950,406			21,137,839			8,476,211			6,108,105
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(838,342	)		(794,879	)		(1,573,473	)		(1,804,102	)		(869,122	)		(824,876	)
Total distributions to shareholders		(838,342	)		(794,879	)		(1,573,473	)		(1,804,102	)		(869,122	)		(824,876	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		—			4,101,648			32,572,922			37,742,897			3,832,071			—
Cost of shares redeemed		(18,474,472	)		(7,267,190	)		—			(60,113,109	)		—			(8,001,044	)
Net increase (decrease) in net assets from capital share transactions		(18,474,472	)		(3,165,542	)		32,572,922			(22,370,212	)		3,832,071			(8,001,044	)
INCREASE (DECREASE) IN NET ASSETS		(6,983,932	)		7,125,585			56,949,855			(3,036,475	)		11,439,160			(2,717,815	)
NET ASSETS:
Beginning of period		61,200,761			54,075,176			98,763,735			101,800,210			27,279,412			29,997,227
End of period	$	54,216,829		$	61,200,761		$	155,713,590		$	98,763,735		$	38,718,572		$	27,279,412
Undistributed (distributions in excess of) net investment income included in net assets at end of period	$	150,972		$	724,345		$	24,518		$	1,573,473		$	(28,848	)	$	792,629
SHARES ISSUED AND REDEEMED:
Shares sold		—			200,000			1,800,000			2,400,000			150,000			—
Shares redeemed		(800,000	)		(400,000	)		—			(3,900,000	)		—			(450,000	)
Net increase (decrease) in shares outstanding		(800,000	)		(200,000	)		1,800,000			(1,500,000	)		150,000			(450,000	)

See notes to financial statements.

FINANCIAL STATEMENTS 79

Statements of Changes in Net Assets

iSHARES^®, INC.

	iShares MSCI Netherlands Index Fund						iShares MSCI Spain Index Fund						iShares MSCI Sweden Index Fund
	For the six months ended February 28, 2005 (Unaudited)			For the year ended August 31, 2004			For the six months ended February 28, 2005 (Unaudited)			For the year ended August 31, 2004			For the six months ended February 28, 2005 (Unaudited)			For the year ended August 31, 2004
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss)	$	175,000		$	547,447		$	563,882		$	782,782		$	(130,467	)	$	420,927
Net realized gain (loss)		(110,447	)		(220,571	)		6,885,033			3,958,943			(185,244	)		15,743
Net change in unrealized appreciation (depreciation)		8,515,105			1,720,975			6,821,497			5,008,839			9,673,737			5,562,688
Net increase in net assets resulting from operations		8,579,658			2,047,851			14,270,412			9,750,564			9,358,026			5,999,358
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(561,271	)		(480,580	)		(1,053,358	)		(464,559	)		(420,504	)		(332,115	)
Total distributions to shareholders		(561,271	)		(480,580	)		(1,053,358	)		(464,559	)		(420,504	)		(332,115	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		15,371,531			8,098,478			23,479,414			2,263,744			26,763,849			5,099,033
Cost of shares redeemed		—			—			(15,097,858	)		(16,465,374	)		—			—
Net increase (decrease) in net assets from capital share transactions		15,371,531			8,098,478			8,381,556			(14,201,630	)		26,763,849			5,099,033
INCREASE (DECREASE) IN NET ASSETS		23,389,918			9,665,749			21,598,610			(4,915,625	)		35,701,371			10,766,276
NET ASSETS:
Beginning of period		28,265,005			18,599,256			45,456,327			50,371,952			27,758,197			16,991,921
End of period	$	51,654,923		$	28,265,005		$	67,054,937		$	45,456,327		$	63,459,568		$	27,758,197
Undistributed net investment income (accumulated net investment loss) included in net assets at end of period	$	172,343		$	558,614		$	269,627		$	759,103		$	(130,467	)	$	420,504
SHARES ISSUED AND REDEEMED:
Shares sold		850,000			500,000			675,000			75,000			1,350,000			300,000
Shares redeemed		—			—			(450,000	)		(675,000	)		—			—
Net increase (decrease) in shares outstanding		850,000			500,000			225,000			(600,000	)		1,350,000			300,000

See notes to financial statements.

80 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets

iSHARES^®, INC.

	iShares MSCI Switzerland Index Fund						iShares MSCI United Kingdom Index Fund
	For the six months ended February 28, 2005 (Unaudited)			For the year ended August 31, 2004			For the six months ended February 28, 2005 (Unaudited)			For the year ended August 31, 2004
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss)	$	(118,002	)	$	267,243		$	5,741,963		$	7,712,465
Net realized gain (loss)		746,260			(117,551	)		17,282,370			(2,229,963	)
Net change in unrealized appreciation (depreciation)		8,252,858			6,459,446			73,662,398			28,384,261
Net increase in net assets resulting from operations		8,881,116			6,609,138			96,686,731			33,866,763
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(269,799	)		(146,432	)		(10,962,863	)		(5,320,972	)
Total distributions to shareholders		(269,799	)		(146,432	)		(10,962,863	)		(5,320,972	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		14,600,161			3,722,134			96,935,421			281,527,046
Cost of shares redeemed		(1,884,522	)		(1,907,959	)		(66,500,344	)		(8,011,981	)
Net increase in net assets from capital share transactions		12,715,639			1,814,175			30,435,077			273,515,065
INCREASE IN NET ASSETS		21,326,956			8,276,881			116,158,945			302,060,856
NET ASSETS:
Beginning of period		41,920,169			33,643,288			452,870,098			150,809,242
End of period	$	63,247,125		$	41,920,169		$	569,029,043		$	452,870,098
Undistributed net investment income (accumulated net investment loss) included in net assets at end of period	$	(118,002	)	$	269,799		$	1,710,680		$	6,931,580
SHARES ISSUED AND REDEEMED:
Shares sold		875,000			250,000			5,600,000			17,800,000
Shares redeemed		(125,000	)		(125,000	)		(3,800,000	)		(600,000	)
Net increase in shares outstanding		750,000			125,000			1,800,000			17,200,000

See notes to financial statements.

FINANCIAL STATEMENTS 81

Financial Highlights

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Austria Index Fund
	Six months ended Feb. 28, 2005 (Unaudited)			Year ended Dec. 31, 2004			Year ended Aug. 31, 2003			Year ended Aug. 31, 2002			Year ended Aug. 31, 2001			Year ended Aug. 31, 2000
Net asset value, beginning of period	$	17.04		$	10.61		$	8.19		$	8.18		$	7.67		$	9.13
Income from investment operations:
Net investment income (loss)a		(0.06	)		0.21			0.09			0.13			0.13			0.04
Net realized and unrealized gain (loss)		7.30			6.39			2.43			(0.12	)		0.52			(1.46	)
Total from investment operations		7.24			6.60			2.52			0.01			0.65			(1.42	)
Less distributions from:
Net investment income		(0.09	)		(0.17	)		(0.10	)		—			(0.14	)		(0.04	)
Return of capital		—			—			—			—			(0.00	)e		—
Total distributions		(0.09	)		(0.17	)		(0.10	)		—			(0.14	)		(0.04	)
Net asset value, end of period	$	24.19		$	17.04		$	10.61		$	8.19		$	8.18		$	7.67
Total return		42.57	%b		62.70	%		31.15	%		0.12	%		8.41	%		(15.51	)%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	188,720		$	57,920		$	22,288		$	14,740		$	11,447		$	10,741
Ratio of expenses to average net assetsc		0.58	%		0.77	%		0.84	%		0.84	%		0.84	%f		1.16	%f
Ratio of net investment income (loss) to average net assetsc		(0.56	)%		1.37	%		0.98	%		1.57	%		1.69	%g		0.51	%g
Portfolio turnover rated		5	%		11	%		26	%		32	%		66	%		34	%

^a Based on average shares outstanding throughout each period.

^b Not annualized.

^c Annualized for periods of less than one year.

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

^e Rounds to less than $0.01.

^f Ratio of expenses to average net assets prior to waived fees and reimbursed expenses for the years ended August 31, 2001 and August 31, 2000 were 0.97% and 1.20%, respectively.

^g Ratio of net investment income to average net assets prior to waived fees and reimbursed expenses for the years ended August 31, 2001 and August 31, 2000 were 1.55% and 0.47%, respectively.

See notes to financial statements.

82 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Belgium Index Fund
	Six months ended Feb. 28, 2005 (Unaudited)			Year ended Aug. 31, 2004			Year ended Aug. 31, 2003			Year ended Aug. 31, 2002			Year ended Aug. 31, 2001			Year ended Aug. 31, 2000
Net asset value, beginning of period	$	14.77		$	11.16		$	10.43		$	11.81		$	13.23		$	16.07
Income from investment operations:
Net investment income (loss)a		(0.02	)		0.37			0.41			0.25			0.19			0.19
Net realized and unrealized gain (loss)		4.62			4.25			0.43			(1.56	)		(1.34	)		(2.67	)
Total from investment operations		4.60			4.62			0.84			(1.31	)		(1.15	)		(2.48	)
Less distributions from:
Net investment income		(0.29	)		(1.01	)		(0.11	)		(0.07	)		(0.27	)		(0.36	)
Total distributions		(0.29	)		(1.01	)		(0.11	)		(0.07	)		(0.27	)		(0.36	)
Net asset value, end of period	$	19.08		$	14.77		$	11.16		$	10.43		$	11.81		$	13.23
Total return		31.19	%b		42.88	%		8.25	%		(11.10	)%		(8.72	)%		(15.50	)%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	56,485		$	24,813		$	21,871		$	10,427		$	9,918		$	13,230
Ratio of expenses to average net assetsc		0.58	%		0.78	%		0.84	%		0.84	%		0.84	%e		1.13	%
Ratio of net investment income (loss) to average net assetsc		(0.22	)%		2.79	%		4.10	%		2.26	%		1.60	%f		1.36	%
Portfolio turnover rated		5	%		21	%		8	%		18	%		36	%		53	%

^a Based on average shares outstanding throughout each period.

^b Not annualized.

^c Annualized for periods of less than one year.

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

^e Ratio of expenses to average net assets prior to waived fees and reimbursed expenses for the year ended August 31, 2001 was 0.87%.

^f Ratio of net investment income to average net assets prior to waived fees and reimbursed expenses for the year ended August 31, 2001 was 1.57%.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 83

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI EMU Index Fund
	Six months ended Feb. 28, 2005 (Unaudited)			Year ended Aug. 31, 2004			Year ended Aug. 31, 2003			Year ended Aug. 31, 2002			Year ended Aug. 31, 2001			Period from Jul. 25, 2000a to Aug. 31, 2000
Net asset value, beginning of period	$	59.38		$	50.12		$	46.02		$	56.74		$	76.02		$	80.72
Income from investment operations:
Net investment income (loss)b		0.22			1.36			0.93			0.75			0.72			(0.00	)f
Net realized and unrealized gain (loss)		15.71			8.69			3.62			(11.47	)		(19.32	)		(4.70	)
Total from investment operations		15.93			10.05			4.55			(10.72	)		(18.60	)		(4.70	)
Less distributions from:
Net investment income		(1.30	)		(0.79	)		(0.45	)		—			(0.42	)		—
Return of capital		—			—			—			—			(0.26	)		—
Total distributions		(1.30	)		(0.79	)		(0.45	)		—			(0.68	)		—
Net asset value, end of period	$	74.01		$	59.38		$	50.12		$	46.02		$	56.74		$	76.02
Total return		26.90	%c		20.07	%		10.05	%		(18.89	)%		(24.51	)%		(5.82	)%c
Ratios/Supplemental data:
Net assets, end of period (000s)	$	506,968		$	326,606		$	165,388		$	131,168		$	90,779		$	41,811
Ratio of expenses to average net assetsd		0.58	%		0.79	%		0.84	%		0.84	%		0.84	%		0.84	%g
Ratio of expenses to average net assets exclusive of foreign taxes on stock dividendsd		0.58	%		0.79	%		0.84	%		0.84	%		0.84	%		0.84	%
Ratio of net investment income to average net assetsd		0.66	%		2.29	%		2.08	%		1.44	%		1.13	%		0.03	%h
Portfolio turnover ratee		5	%		11	%		7	%		3	%		24	%		0	%

^a Commencement of operations.

^b Based on average shares outstanding throughout each period.

^c Not annualized.

^d Annualized for periods of less than one year.

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

^f Rounds to less than $0.01.

^g Ratio of expenses to average net assets prior to waived fees and reimbursed expenses for the period ended August 31, 2000 was 1.57%.

^h Ratio of net investment loss to average net assets prior to waived fees and reimbursed expenses for the period ended August 31, 2000 was (0.70)%.

See notes to financial statements.

84 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI France Index Fund
	Six months ended Feb. 28, 2005 (Unaudited)			Year ended Aug. 31, 2004			Year ended Aug. 31, 2003			Year ended Aug. 31, 2002			Year ended Aug. 31, 2001			Year ended Aug. 31, 2000
Net asset value, beginning of period	$	20.40		$	16.90		$	15.52		$	19.53		$	26.41		$	22.90
Income from investment operations:
Net investment incomea		0.10			0.24			0.23			0.18			0.06			0.10
Net realized and unrealized gain (loss)		4.44			3.54			1.33			(4.19	)		(6.89	)		5.21
Total from investment operations		4.54			3.78			1.56			(4.01	)		(6.83	)		5.31
Less distributions from:
Net investment income		(0.30	)		(0.28	)		(0.18	)		—			(0.04	)		(0.11	)
Net realized gain		—			—			—			—			(0.00	)e		(1.67	)
Return of capital		—			—			—			—			(0.01	)		(0.02	)
Total distributions		(0.30	)		(0.28	)		(0.18	)		—			(0.05	)		(1.80	)
Net asset value, end of period	$	24.64		$	20.40		$	16.90		$	15.52		$	19.53		$	26.41
Total return		22.31	%b		22.44	%		10.22	%		(20.53	)%		(25.86	)%		23.45	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	54,217		$	61,201		$	54,075		$	49,674		$	58,602		$	95,116
Ratio of expenses to average net assetsc		0.58	%		0.79	%		0.84	%		0.84	%		0.84	%		0.96	%
Ratio of net investment income to average net assetsc		0.85	%		1.23	%		1.56	%		1.00	%		0.28	%		0.36	%
Portfolio turnover rated		4	%		9	%		9	%		3	%		14	%		17	%

^a Based on average shares outstanding throughout each period.

^b Not annualized.

^c Annualized for periods of less than one year.

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

^e Rounds to less than $0.01.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 85

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Germany Index Fund
	Six months ended Feb. 28, 2005 (Unaudited)			Year ended Aug. 31, 2004			Year ended Aug. 31, 2003			Year ended Aug. 31, 2002			Year ended Aug. 31, 2001			Year ended Aug. 31, 2000
Net asset value, beginning of period	$	14.96		$	12.57		$	12.07		$	15.19		$	20.46		$	21.17
Income from investment operations:
Net investment incomea		—			0.19			0.21			0.11			0.18			0.18
Net realized and unrealized gain (loss)		3.77			2.40			0.41			(3.23	)		(5.26	)		1.64
Total from investment operations		3.77			2.59			0.62			(3.12	)		(5.08	)		1.82
Less distributions from:
Net investment income		(0.19	)		(0.20	)		(0.12	)		—			(0.19	)		(0.17	)
Net realized gain		—			—			—			—			—			(2.32	)
Return of capital		—			—			—			—			(0.00	)e		(0.04	)
Total distributions		(0.19	)		(0.20	)		(0.12	)		—			(0.19	)		(2.53	)
Net asset value, end of period	$	18.54		$	14.96		$	12.57		$	12.07		$	15.19		$	20.46
Total return		25.24	%b		20.55	%		5.39	%		(20.54	)%		(24.87	)%		8.44	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	155,714		$	98,764		$	101,800		$	94,160		$	118,525		$	153,487
Ratio of expenses to average net assetsc		0.58	%		0.80	%		0.84	%		0.84	%		0.84	%		0.94	%
Ratio of net investment income to average net assetsc		0.04	%		1.27	%		1.98	%		0.77	%		0.99	%		0.73	%
Portfolio turnover rated		2	%		9	%		11	%		9	%		20	%		56	%

^a Based on average shares outstanding throughout each period.

^b Not annualized.

^c Annualized for periods of less than one year.

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

^e Rounds to less than $0.01.

See notes to financial statements.

86 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Italy Index Fund
	Six months ended Feb. 28, 2005 (Unaudited)			Year ended Aug. 31, 2004			Year ended Aug. 31, 2003			Year ended Aug. 31, 2002			Year ended Aug. 31, 2001			Year ended Aug. 31, 2000
Net asset value, beginning of period	$	20.21		$	16.67		$	15.15		$	17.79		$	22.23		$	21.56
Income from investment operations:
Net investment incomea		0.04			0.56			0.43			0.37			0.24			0.39
Net realized and unrealized gain (loss)		6.20			3.59			1.47			(3.01	)		(4.37	)		2.51
Total from investment operations		6.24			4.15			1.90			(2.64	)		(4.13	)		2.90
Less distributions from:
Net investment income		(0.64	)		(0.61	)		(0.38	)		—			(0.24	)		(0.12	)
Net realized gain		—			—			—			—			(0.07	)		(1.80	)
Return of capital		—			—			—			—			(0.00	)e		(0.31	)
Total distributions		(0.64	)		(0.61	)		(0.38	)		—			(0.31	)		(2.23	)
Net asset value, end of period	$	25.81		$	20.21		$	16.67		$	15.15		$	17.79		$	22.23
Total return		30.95	%b		25.09	%		12.79	%		(14.84	)%		(18.61	)%		13.35	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	38,719		$	27,279		$	29,997		$	29,538		$	34,682		$	50,008
Ratio of expenses to average net assetsc		0.58	%		0.83	%		0.84	%		0.84	%		0.84	%		0.99	%
Ratio of expenses to average net assets exclusive of foreign taxes on stock dividendsc		0.58	%		0.79	%		0.84	%		0.84	%		0.84	%		0.99	%
Ratio of net investment income to average net assetsc		0.30	%		2.85	%		2.84	%		2.34	%		1.16	%		1.61	%
Portfolio turnover rated		8	%		9	%		22	%		10	%		20	%		40	%

^a Based on average shares outstanding throughout each period.

^b Not annualized.

^c Annualized for periods of less than one year.

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

^e Rounds to less than $0.01.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 87

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Netherlands Index Fund
	Six months ended Feb. 28, 2005 (Unaudited)			Year ended Aug. 31, 2004			Year ended Aug. 31, 2003			Year ended Aug. 31, 2002			Year ended Aug. 31, 2001			Year ended Aug. 31, 2000
Net asset value, beginning of period	$	15.70		$	14.31		$	14.69		$	18.59		$	23.53		$	23.45
Income from investment operations:
Net investment incomea		0.09			0.39			0.30			0.25			0.28			0.13
Net realized and unrealized gain (loss)		3.96			1.37			(0.43	)		(4.11	)		(4.94	)		0.18
Total from investment operations		4.05			1.76			(0.13	)		(3.86	)		(4.66	)		0.31
Less distributions from:
Net investment income		(0.26	)		(0.37	)		(0.25	)		(0.04	)		(0.28	)		(0.08	)
Net realized gain		—			—			—			—			—			(0.11	)
Return of capital		—			—			—			—			—			(0.04	)
Total distributions		(0.26	)		(0.37	)		(0.25	)		(0.04	)		(0.28	)		(0.23	)
Net asset value, end of period	$	19.49		$	15.70		$	14.31		$	14.69		$	18.59		$	23.53
Total return		25.92	%b		12.28	%		(0.78	)%		(20.79	)%		(19.83	)%		1.28	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	51,655		$	28,265		$	18,599		$	19,103		$	24,184		$	30,613
Ratio of expenses to average net assetsc		0.58	%		0.78	%		0.84	%		0.84	%		0.84	%		1.03	%
Ratio of net investment income to average net assetsc		0.98	%		2.45	%		2.37	%		1.48	%		1.34	%		0.53	%
Portfolio turnover rated		1	%		9	%		18	%		15	%		35	%		22	%

^a Based on average shares outstanding throughout each period.

^b Not annualized.

^c Annualized for periods of less than one year.

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

See notes to financial statements.

88 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Spain Index Fund
	Six months ended Feb. 28, 2005 (Unaudited)			Year ended Aug. 31, 2004			Year ended Aug. 31, 2003			Year ended Aug. 31, 2002			Year ended Aug. 31, 2001			Year ended Aug. 31, 2000
Net asset value, beginning of period	$	27.55		$	22.39		$	17.95		$	21.33		$	24.19		$	25.59
Income from investment operations:
Net investment incomea		0.34			0.44			0.24			0.17			0.19			0.15
Net realized and unrealized gain (loss)		8.48			4.99			4.36			(3.55	)		(2.89	)		(0.60	)
Total from investment operations		8.82			5.43			4.60			(3.38	)		(2.70	)		(0.45	)
Less distributions from:
Net investment income		(0.61	)		(0.27	)		(0.16	)		—			(0.16	)		(0.14	)
Net realized gain		—			—			—			—			—			(0.80	)
Return of capital		—			—			—			—			(0.00	)e		(0.01	)
Total distributions		(0.61	)		(0.27	)		(0.16	)		—			(0.16	)		(0.95	)
Net asset value, end of period	$	35.76		$	27.55		$	22.39		$	17.95		$	21.33		$	24.19
Total return		32.08	%b		24.28	%		25.81	%		(15.85	)%		(11.17	)%		(1.81	)%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	67,055		$	45,456		$	50,372		$	18,850		$	27,198		$	39,913
Ratio of expenses to average net assetsc		0.58	%		0.80	%		0.84	%		0.84	%		0.84	%		0.99	%
Ratio of net investment income to average net assetsc		2.10	%		1.64	%		1.22	%		0.85	%		0.82	%		0.57	%
Portfolio turnover rated		5	%		6	%		17	%		14	%		26	%		39	%

^a Based on average shares outstanding throughout each period.

^b Not annualized.

^c Annualized for periods of less than one year.

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

^e Rounds to less than $0.01.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 89

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Sweden Index Fund
	Six months ended Feb. 28, 2005 (Unaudited)			Year ended Aug. 31, 2004			Year ended Aug. 31, 2003			Year ended Aug. 31, 2002			Year ended Aug. 31, 2001			Year ended Aug. 31, 2000
Net asset value, beginning of period	$	16.82		$	12.59		$	9.88		$	12.88		$	24.38		$	22.26
Income from investment operations:
Net investment income (loss)a		(0.05	)		0.28			0.25			0.12			0.07			0.14
Net realized and unrealized gain (loss)		4.53			4.20			2.58			(3.12	)		(11.52	)		8.38
Total from investment operations		4.48			4.48			2.83			(3.00	)		(11.45	)		8.52
Less distributions from:
Net investment income		(0.15	)		(0.25	)		(0.12	)		—			(0.05	)		(0.14	)
Net realized gain		—			—			—			—			—			(6.22	)
Return of capital		—			—			—			—			(0.00	)e		(0.04	)
Total distributions		(0.15	)		(0.25	)		(0.12	)		—			(0.05	)		(6.40	)
Net asset value, end of period	$	21.15		$	16.82		$	12.59		$	9.88		$	12.88		$	24.38
Total return		26.64	%b		35.81	%		29.04	%		(23.29	)%		(46.99	)%		39.15	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	63,460		$	27,758		$	16,992		$	8,154		$	10,630		$	23,774
Ratio of expenses to average net assetsc		0.58	%		0.92	%		0.84	%		0.84	%		0.84	%		1.03	%
Ratio of expenses to average net assets exclusive of foreign taxes on stock dividendsc		0.58	%		0.79	%		0.84	%		0.84	%		0.84	%		1.03	%
Ratio of net investment income (loss) to average net assetsc		(0.55	)%		1.74	%		2.44	%		0.98	%		0.40	%		0.46	%
Portfolio turnover rated		3	%		9	%		12	%		31	%		43	%		90	%

^a Based on average shares outstanding throughout each period.

^b Not annualized.

^c Annualized for periods of less than one year.

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

^e Rounds to less than $0.01.

See notes to financial statements.

90 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Switzerland Index Fund
	Six months ended Feb. 28, 2005 (Unaudited)			Year ended Aug. 31, 2004			Year ended Aug. 31, 2003			Year ended Aug. 31, 2002			Year ended Aug. 31, 2001			Year ended Aug. 31, 2000
Net asset value, beginning of period	$	14.58		$	12.23		$	11.59		$	12.95		$	15.54		$	15.39
Income from investment operations:
Net investment income (loss)a		(0.04	)		0.09			0.05			0.03			0.04			0.04
Net realized and unrealized gain (loss)		3.00			2.31			0.62			(1.38	)		(2.54	)		0.27
Total from investment operations		2.96			2.40			0.67			(1.35	)		(2.50	)		0.31
Less distributions from:
Net investment income		(0.09	)		(0.05	)		(0.03	)		(0.01	)		(0.05	)		(0.04	)
Net realized gain		—			—			—			—			(0.04	)		(0.11	)
Return of capital		—			—			—			—			—			(0.01	)
Total distributions		(0.09	)		(0.05	)		(0.03	)		(0.01	)		(0.09	)		(0.16	)
Net asset value, end of period	$	17.45		$	14.58		$	12.23		$	11.59		$	12.95		$	15.54
Total return		20.30	%b		19.56	%		5.89	%		(10.47	)%		(16.08	)%		1.96	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	63,247		$	41,920		$	33,643		$	31,883		$	32,384		$	44,685
Ratio of expenses to average net assetsc		0.58	%		0.79	%		0.84	%		0.84	%		0.84	%		1.01	%
Ratio of net investment income (loss) to average net assetsc		(0.49	)%		0.64	%		0.43	%		0.20	%		0.29	%		0.23	%
Portfolio turnover rated		1	%		4	%		10	%		12	%		34	%		35	%

^a Based on average shares outstanding throughout each period.

^b Not annualized.

^c Annualized for periods of less than one year.

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

See notes to financial statements.

FINANCIAL HIGHLIGHTS 91

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI United Kingdom Index Fund
	Six months ended Feb. 28, 2005 (Unaudited)			Year ended Aug. 31, 2004			Year ended Aug. 31, 2003			Year ended Aug. 31, 2002			Year ended Aug. 31, 2001			Year ended Aug. 31, 2000
Net asset value, beginning of period	$	15.72		$	13.00		$	12.77		$	15.11		$	18.35		$	20.25
Income from investment operations:
Net investment incomea		0.19			0.48			0.39			0.48			0.26			0.27
Net realized and unrealized gain (loss)		3.03			2.72			0.12			(2.60	)		(3.23	)		(0.85	)
Total from investment operations		3.22			3.20			0.51			(2.12	)		(2.97	)		(0.58	)
Less distributions from:
Net investment income		(0.34	)		(0.48	)		(0.28	)		(0.22	)		(0.25	)		(0.25	)
Net realized gain		—			—			—			—			(0.02	)		(1.03	)
Return of capital		—			—			—			—			—			(0.04	)
Total distributions		(0.34	)		(0.48	)		(0.28	)		(0.22	)		(0.27	)		(1.32	)
Net asset value, end of period	$	18.60		$	15.72		$	13.00		$	12.77		$	15.11		$	18.35
Total return		20.62	%b		24.77	%		4.20	%		(14.19	)%		(16.20	)%		(3.00	)%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	569,029		$	452,870		$	150,809		$	120,067		$	117,883		$	146,803
Ratio of expenses to average net assetsc		0.58	%		0.77	%		0.84	%		0.84	%		0.84	%		0.94	%
Ratio of net investment income to average net assetsc		2.19	%		3.11	%		3.23	%		3.39	%		1.57	%		1.39	%
Portfolio turnover rated		3	%		6	%		6	%		14	%		30	%		33	%

^a Based on average shares outstanding throughout each period.

^b Not annualized.

^c Annualized for periods of less than one year.

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

See notes to financial statements.

92 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to the Financial Statements (Unaudited)

iSHARES^®, INC.

1. SIGNIFICANT ACCOUNTING POLICIES

iShares, Inc. (the “Company”), is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Company was incorporated under the laws of the State of Maryland on September 1, 1994 pursuant to amended and restated Articles of Incorporation. As of February 28, 2005, the Company offered 24 investment portfolios or funds.

These financial statements relate only to the iShares MSCI Austria, iShares MSCI Belgium, iShares MSCI EMU, iShares MSCI France, iShares MSCI Germany, iShares MSCI Italy, iShares MSCI Netherlands, iShares MSCI Spain, iShares MSCI Sweden, iShares MSCI Switzerland and iShares MSCI United Kingdom 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 publicly traded equity securities in the aggregate in a particular market, as measured by a particular equity securities index compiled by Morgan Stanley Capital International Inc. (“MSCI”). The investment adviser utilizes 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 stocks in 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 foreign issuers of a single country or region, which 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; lesser 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.

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

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

Certain prior year amounts in the financial statements have been reclassified to be consistent with the current period presentation. The reclassifications had no impact on prior year net assets, net income or distributions.

NOTES TO THE FINANCIAL STATEMENTS 93

Notes to the Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

SECURITY VALUATION

The securities of each Fund are valued primarily on the basis of market prices. Debt securities maturing in 60 days or less and short-term investments are valued at amortized cost.

Securities held under a repurchase agreement are valued at a price equal to the amount of the cash investment at the time of valuation on the valuation date. The market values of the underlying securities are determined in accordance with the above discussed valuation methods, as appropriate, for the purpose of determining the adequacy of collateral.

Securities of investment companies, other than investment companies whose shares are traded on an exchange, are valued at the investment company’s published net asset value per share.

Any securities, including restricted securities or other assets for which market quotations are not readily available, or for which a significant event has occurred since the time of the most recent market quotation, are valued in accordance with fair value pricing policies approved by the Board of Directors of the Company (the “Board”).

SECURITY TRANSACTIONS AND INCOME RECOGNITION

Security transactions are accounted for on trade date. Dividend income is recognized on the ex-dividend date and interest income is accrued daily. 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. Purchases and sales of securities, income receipts and expense payments are translated into U.S. dollars at the prevailing exchange rate on the respective dates of such transactions.

Foreign currencies, investment securities and assets and liabilities denominated in foreign currencies are converted into U.S. dollars using exchange rates deemed appropriate by the investment adviser. Any use of a different rate from the rates used by MSCI may adversely affect a Fund’s ability to track its underlying index.

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

During the six months ended February 28, 2005, the iShares MSCI Sweden Index Fund paid foreign taxes on certain taxable corporate events (i.e., spin-offs and tender offers) by Swedish companies whose securities are held by the Fund. The foreign taxes paid by the Fund are disclosed in its Statement of Operations.

DISTRIBUTIONS TO SHAREHOLDERS

Distributions to shareholders from net investment income, if any, including any net foreign currency gains, are declared and distributed at least annually by each Fund. Distributions of net realized 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.

94 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to the Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

As of August 31, 2004, the tax year-end of the Funds, the components of distributable earnings (accumulated losses) on a tax basis were as follows:

iShares MSCI Index Fund	Undistributed Ordinary Income		Unrealized Appreciation (Depreciation)			Capital and Other Losses			Net Distributable Earnings (Accumulated Losses)
Austria	$	634,690	$	11,664,201		$	(3,409,670	)	$	8,889,221
Belgium		613,600		331,679			(2,531,775	)		(1,586,496	)
EMU		6,789,991		(6,245,138	)		(9,884,161	)		(9,339,308	)
France		724,345		(1,559,360	)		(6,445,487	)		(7,280,502	)
Germany		1,573,473		(35,513,677	)		(30,028,327	)		(63,968,531	)
Italy		792,629		199,034			(5,056,958	)		(4,065,295	)
Netherlands		558,614		(4,482,874	)		(7,391,799	)		(11,316,059	)
Spain		759,103		8,200,485			(4,427,739	)		4,531,849
Sweden		420,504		3,480,112			(6,203,866	)		(2,303,250	)
Switzerland		269,799		2,656,328			(6,734,346	)		(3,808,219	)
United Kingdom		6,976,148		(8,089,189	)		(22,211,909	)		(23,324,950	)

For the six months ended February 28, 2005 and for the year ended August 31, 2004, the tax characterization of distributions paid for each Fund was equal to the book characterization of distributions paid. The total distributions and distributions per share are disclosed in the accompanying Statements of Changes in Net Assets and the Financial Highlights for all Funds.

FEDERAL INCOME TAXES

Each Fund is treated as a separate entity for federal income tax purposes. It is the policy of each Fund to qualify as a regulated investment company by complying with the provisions applicable to regulated investment companies, as defined under Subchapter M of the Internal Revenue Code of 1986, as amended, and to annually distribute substantially all of its net income and any net gains (taking into account any capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income and excise taxes. Accordingly, no provision for federal income taxes was required for the six months ended February 28, 2005.

NOTES TO THE FINANCIAL STATEMENTS 95

Notes to the Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

The Funds had tax basis net capital loss carryforwards as of August 31, 2004, the tax year-end of the Funds, as follows:

iShares MSCI Index Fund	Expiring in 2007		Expiring in 2008		Expiring in 2009		Expiring in 2010		Expiring in 2011		Expiring in 2012		Total
Austria	$	4,273	$	551,208	$	336,553	$	1,291,324	$	370,948	$	855,364	$	3,409,670
Belgium		—		94,675		450,543		1,677,678		117,767		175,781		2,516,444
EMU		—		—		443		1,923,552		1,144,756		4,757,907		7,826,658
France		—		—		—		3,807,513		236,944		2,401,030		6,445,487
Germany		—		—		86,860		13,573,336		5,469,732		8,656,712		27,786,640
Italy		—		—		—		3,335,772		848,408		541,980		4,726,160
Netherlands		—		—		60,885		3,222,792		1,497,810		2,481,175		7,262,662
Spain		—		—		20,276		2,081,931		678,910		1,582,094		4,363,211
Sweden		—		—		126,557		3,350,244		1,577,551		1,149,514		6,203,866
Switzerland		—		—		—		2,855,879		1,018,305		2,149,171		6,023,355
United Kingdom		—		—		—		9,945,254		6,448,554		4,272,059		20,665,867

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

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

As of February 28, 2005, the aggregate unrealized appreciation and depreciation based on cost for federal income tax purposes were as follows:

iShares MSCI Index Fund	Tax Cost		Unrealized Appreciation		Unrealized Depreciation			Net Unrealized Appreciation (Depreciation)
Austria	$	171,640,771	$	39,584,245	$	(36,357	)	$	39,547,888
Belgium		72,662,001		10,168,282		(577	)		10,167,705
EMU		602,181,939		87,423,476		(5,448,519	)		81,974,957
France		69,305,890		13,300,045		(8,277,380	)		5,022,665
Germany		221,082,236		15,382,328		(24,364,719	)		(8,982,391	)
Italy		46,404,628		10,237,897		(1,542,704	)		8,695,193
Netherlands		57,726,760		5,233,970		(1,324,920	)		3,909,050
Spain		66,516,303		15,038,618		(23,294	)		15,015,324
Sweden		71,514,287		12,924,010		(748	)		12,923,262
Switzerland		60,386,834		11,995,900		(1,143,260	)		10,852,640
United Kingdom		506,304,679		72,760,690		(11,062,257	)		61,698,433

96 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to the Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

REPURCHASE AGREEMENTS

Each Fund may enter into repurchase agreements with banks and securities dealers. These transactions involve the purchase of securities with a simultaneous commitment to resell the securities to the bank or the dealer at an agreed-upon date and price. A repurchase agreement is accounted for as an investment by the Fund, collateralized by securities, which are delivered to the Fund’s custodian or to an agent bank under a tri-party agreement. The securities are marked-to-market daily and additional securities are acquired as needed, to ensure that their value equals or exceeds the repurchase price plus accrued interest. As of February 28, 2005, a portion of the cash collateral for securities on loan for the Funds was invested in repurchase agreements as disclosed in each Fund’s Schedule of Investments. For further information, see Note 5, below.

2. AGREEMENTS AND OTHER TRANSACTIONS WITH AFFILIATES

Pursuant to an Investment Advisory Agreement with the Company, as amended, 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 of the expenses (“Covered Expenses”) of each of the Funds, 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 an annual investment advisory fee based on each Fund’s allocable portion of the aggregate net assets of all the funds offered by the Company (except for the iShares MSCI Brazil, iShares MSCI Emerging Markets, iShares MSCI Pacific ex-Japan, iShares MSCI South Africa, iShares MSCI South Korea, and iShares MSCI Taiwan Index Funds) as follows:

Investment Advisory Fee	Aggregate Net Assets
0.59%	First $7 billion
0.54	Over $7 billion, up to and including $11 billion
0.49	Over $11 billion

Barclays Global Investors, N.A. (“BGI”) has a license agreement with MSCI for the use of the relevant MSCI indices. Under a sub-license agreement between BGI and the Funds, the fees for the use of such MSCI indices are paid directly by BGI to MSCI.

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

NOTES TO THE FINANCIAL STATEMENTS 97

Notes to the Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

BGI serves as securities lending agent for the Company. BGI is an affiliate 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 six months ended February 28, 2005, BGI earned securities lending agent fees as follows:

iShares MSCI Index Fund	Securities Lending Agent Fees
Austria	$	11,304
Belgium		13,027
EMU		147,208
France		27,390
Germany		47,900
Italy		17,080
Netherlands		7,580
Spain		22,864
Sweden		10,998
Switzerland		1,792
United Kingdom		8,222

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

As defined under Section 2(a)(3) of the 1940 Act, certain broker-dealers may be deemed to be an “affiliated person” of a Fund by virtue of being a DTC Participant that owned of record 5% or more of the outstanding shares of such Fund. The broker-dealers identified to be an “affiliated person” of a Fund (other than BGIS) did not execute any portfolio transactions with or on behalf of such Fund during the six months ended February 28, 2005.

Pursuant to Rule 17a-7 under the 1940 Act, certain Funds executed cross trades for the six months ended February 28, 2005. Cross trading is the buying or selling of portfolio securities between funds to which BGFA (or an affiliate) serves as investment adviser. The Board reviewed all such transactions executed during the first four months of the fiscal half-year and concluded that they were in compliance with the requirements and restrictions set forth in Rule 17a-7. The Board is scheduled at its next meeting to review all such transactions executed during the last two months of the fiscal half-year.

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

98 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to the Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

The following table provides information about the investment by each Fund in shares of issuers of which BGFA is an affiliate, for the six months ended February 28, 2005, including income earned from these affiliated issuers and net realized gain from sales of these affiliated issuers.

iShares MSCI Index Fund and Name of Affiliated Issuer	Number of Shares Held Beginning of Period (in 000s)	Gross Additions (in 000s)	Gross Reductions (in 000s)	Number of Shares Held End of Period (in 000s)	Value at End of Period		Dividend and Interest Income		Net Realized Gain
Austria
IMMF	29	4,979	4,916	92	$	91,823	$	799	$	—
Belgium
IMMF	12	1,306	1,291	27		26,796		318		—
EMU
IMMF	193	10,255	10,168	280		280,157		1,595		—
France
IMMF	52	1,377	1,425	4		3,630		326		—
Germany
IMMF	69	3,021	3,015	75		75,106		546		—
Italy
IMMF	15	1,291	1,280	26		25,620		183		—
Netherlands
IMMF	15	947	942	20		20,311		205		—
Spain
IMMF	24	2,108	2,092	40		40,347		365		—
Sweden
IMMF	15	866	877	4		3,835		139		—
Switzerland
IMMF	22	839	833	28		27,875		156		—
United Kingdom
Barclays PLC	1,510	302	249	1,563		17,004,618		523,062		1,677,583
IMMF	283	15,597	15,874	6		6,275		2,228		—

During the six months ended February 28, 2005, the Funds invested cash collateral from securities on loan in the GMMF, IMMF and PMMF. Due to the nature of the structure of the joint account used for the investment of the collateral for securities on loan, the information reported above for each Fund does not include the Fund’s holdings of the GMMF, IMMF and PMMF in connection with the investment of collateral for securities on loan.

As of February 28, 2005, certain directors and officers of the Company are also officers of BGI.

NOTES TO THE FINANCIAL STATEMENTS 99

Notes to the Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

3. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the six months ended February 28, 2005, were as follows:

iShares MSCI Index Fund	Purchases		Sales
Austria	$	5,676,141	$	6,936,749
Belgium		1,909,690		1,910,018
EMU		18,717,122		22,135,816
France		2,945,358		2,311,885
Germany		2,912,550		4,399,694
Italy		2,576,060		3,394,173
Netherlands		540,136		839,192
Spain		2,742,410		3,215,791
Sweden		1,354,108		1,912,578
Switzerland		648,736		1,032,750
United Kingdom		17,545,186		21,804,060

In-kind transactions (see Note 4) for the six months ended February 28, 2005, were as follows:

iShares MSCI Index Fund	In-kind Purchases		In-kind Sales
Austria	$	115,433,487	$	22,025,187
Belgium		23,712,753		2,327,730
EMU		100,913,717		6,200,380
France		—		18,394,404
Germany		32,561,649		—
Italy		3,824,175		—
Netherlands		15,326,043		—
Spain		23,444,179		15,068,052
Sweden		26,757,602		—
Switzerland		13,709,088		1,879,776
United Kingdom		96,396,302		66,182,194

100 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to the Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

4. CAPITAL SHARE TRANSACTIONS

The Company has authorized 10.9 billion shares of $.001 par value capital stock. The number of shares authorized to each Fund are as follows:

iShares MSCI Index Fund	Authorized Shares	iShares MSCI Index Fund	Authorized Shares
Austria	19,800,000	Netherlands	255,000,000
Belgium	136,200,000	Spain	127,800,000
EMU	500,000,000	Sweden	63,600,000
France	340,200,000	Switzerland	318,625,000
Germany	382,200,000	United Kingdom	943,200,000
Italy	63,600,000

The Company issues and redeems capital shares of each Fund only in aggregations of a specified number of shares (each, a “Creation Unit”) at net asset value. Except when aggregated in Creation Units, shares of each Fund are not redeemable. Transactions in capital shares for each Fund are disclosed in detail in the Statements of Changes in Net Assets.

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

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

As of February 28, 2005, the Funds had loaned securities which were collateralized by cash. The cash collateral received was invested in a joint account with other funds managed by BGFA, which invests in securities with remaining maturities of 397 days or less, repurchase agreements and money market mutual funds, including money market funds managed by BGFA. Repurchase agreements held in the joint account are fully collateralized by U.S. Government securities. Income from the joint account is allocated daily to each Fund, based on each Fund’s portion of the total cash collateral received. The market value of the securities on loan as of February 28, 2005 and the value of the related collateral are disclosed in the Statements of Assets and Liabilities. Securities lending income, which is disclosed in the Funds’ Statements of Operations, is presented net of rebates paid to, or fees paid by, borrowers.

NOTES TO THE FINANCIAL STATEMENTS 101

The iShares^® Family of Funds

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

iShares S&P Domestic Index Funds

iShares S&P 1500 (ISI)

iShares S&P 500 (IVV)

iShares S&P 500/BARRA Growth (IVW)

iShares S&P 500/BARRA Value (IVE)

iShares S&P MidCap 400 (IJH)

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

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

iShares S&P SmallCap 600 (IJR)

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

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

iShares S&P 100 (OEF)

iShares Sector and Specialty Index Funds

iShares Cohen & Steers Realty Majors (ICF)

iShares Dow Jones Select Dividend (DVY)

iShares Dow Jones Transportation Average (IYT)

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

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

iShares Dow Jones U.S. Consumer Non-Cyclical Sector (IYK)

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

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

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

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

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

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

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

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

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

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

iShares Goldman Sachs Natural Resources (IGE)

iShares Goldman Sachs Networking (IGN)

iShares Goldman Sachs Semiconductor (IGW)

iShares Goldman Sachs Software (IGV)

iShares Goldman Sachs Technology (IGM)

iShares KLD Select Social^SM (KLD)

iShares Nasdaq Biotechnology (IBB)

iShares S&P Global Energy Sector (IXC)

iShares S&P Global Financials Sector (IXG)

iShares S&P Global Healthcare Sector (IXJ)

iShares S&P Global Technology Sector (IXN)

iShares S&P Global Telecommunications Sector (IXP)

iShares Russell Index Funds

iShares Russell 3000 (IWV)

iShares Russell 3000 Growth (IWZ)

iShares Russell 3000 Value (IWW)

iShares Russell 1000 (IWB)

iShares Russell 1000 Growth (IWF)

iShares Russell 1000 Value (IWD)

iShares Russell Midcap (IWR)

iShares Russell Midcap Growth (IWP)

iShares Russell Midcap Value (IWS)

iShares Russell 2000 (IWM)

iShares Russell 2000 Growth (IWO)

iShares Russell 2000 Value (IWN)

iShares International Index Funds

iShares FTSE/Xinhua China 25 (FXI)

iShares MSCI Australia (EWA)

iShares MSCI Austria (EWO)

iShares MSCI Belgium (EWK)

iShares MSCI Brazil (EWZ)

iShares MSCI Canada (EWC)

iShares MSCI EAFE (EFA)

iShares MSCI Emerging Markets (EEM)

iShares MSCI EMU (EZU)

iShares MSCI France (EWQ)

iShares MSCI Germany (EWG)

iShares MSCI Hong Kong (EWH)

iShares MSCI Italy (EWI)

iShares MSCI Japan (EWJ)

iShares MSCI Malaysia (EWM)

iShares MSCI Mexico (EWW)

iShares MSCI Netherlands (EWN)

iShares MSCI Pacific ex-Japan (EPP)

iShares MSCI Singapore (EWS)

iShares MSCI South Africa (EZA)

iShares MSCI South Korea (EWY)

iShares MSCI Spain (EWP)

iShares MSCI Sweden (EWD)

iShares MSCI Switzerland (EWL)

iShares MSCI Taiwan (EWT)

iShares MSCI United Kingdom (EWU)

iShares S&P Europe 350 (IEV)

iShares S&P Global 100 (IOO)

iShares S&P Latin America 40 (ILF)

iShares S&P/TOPIX 150 (ITF)

iShares Bond Funds

iShares GS $ InvesTop^™ Corporate (LQD)

iShares Lehman Aggregate (AGG)

iShares Lehman TIPS (TIP)

iShares Lehman 1-3 Year Treasury (SHY)

iShares Lehman 7-10 Year Treasury (IEF)

iShares Lehman 20+ Year Treasury (TLT)

iShares NYSE Index Funds

iShares NYSE 100 (NY)

iShares NYSE Composite (NYC)

iShares Morningstar Index Funds

iShares Morningstar Large Core (JKD)

iShares Morningstar Large Growth (JKE)

iShares Morningstar Large Value (JKF)

iShares Morningstar Mid Core (JKG)

iShares Morningstar Mid Growth (JKH)

iShares Morningstar Mid Value (JKI)

iShares Morningstar Small Core (JKJ)

iShares Morningstar Small Growth (JKK)

iShares Morningstar Small Value (JKL)

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

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

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

1667-iS-0305

102 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

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

The iShares Funds are not sponsored, endorsed, issued, sold or promoted by Morgan Stanley Capital International, Inc., nor does this company make any representation regarding the advisability of investing in the iShares Funds.

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

Investing involves risk, including possible loss of principal.

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

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

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

BGI-F-036-02005

BARCLAYS GLOBAL INVESTORS

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

Fund Performance Overview	1
Shareholder Expenses	13
Schedules of Investments	15
iShares MSCI Australia Index Fund	15
iShares MSCI Brazil Index Fund	21
iShares MSCI Canada Index Fund	26
iShares MSCI Emerging Markets Index Fund	29
iShares MSCI Hong Kong Index Fund	38
iShares MSCI Malaysia Index Fund	43
iShares MSCI Mexico Index Fund	45
iShares MSCI Pacific ex-Japan Index Fund	50
iShares MSCI Singapore Index Fund	56
iShares MSCI South Africa Index Fund	61
iShares MSCI South Korea Index Fund	63
iShares MSCI Taiwan Index Fund	66
Financial Statements	69
Financial Highlights	77
Notes to the Financial Statements	89
iShares Family of Funds	98

Fund Performance Overview

iSHARES^® MSCI AUSTRALIA INDEX FUND

Performance as of 2/28/05

The iShares MSCI Australia Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the Australian market, as measured by the MSCI Australia Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which have a similar investment profile as the Index. For the six months ended February 28, 2005, the Fund returned 35.69%, while the Index returned 35.40%.

Average Annual Total Returns
Year Ended 2/28/05			Five Years Ended 2/28/05			Inception to 2/28/05
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
33.14%	31.85%	32.43%	15.25%	15.01%	14.93%	9.80%	9.77%	10.04%
Cumulative Total Returns
Year Ended 2/28/05			Five Years Ended 2/28/05			Inception to 2/28/05
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
33.14%	31.85%	32.43%	103.34%	101.26%	100.53%	131.24%	130.82%	135.85%

Total returns for the periods since inception are calculated from the inception date of the Fund (3/12/96). “Average annual total returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative total returns” represent the total change in value of an investment over the periods indicated.

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

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until several days after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (3/18/96), the NAV of the Fund is used as a proxy for the secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

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

PORTFOLIO ALLOCATION As of 2/28/05
Sector	% of Net Assets
Financial	48.83	%
Basic Materials	18.97
Consumer Non-Cyclical	9.47
Industrial	8.56
Consumer Cyclical	4.58
Communications	3.39
Energy	3.26
Utilities	1.05
Diversified	0.56
Technology	0.37
Short-Term and Other Net Assets	0.96
TOTAL	100.00	%

TOP TEN FUND HOLDINGS As of 2/28/05
Security	% of Net Assets
BHP Billiton Ltd.	11.12	%
Commonwealth Bank of Australia	7.48
National Australia Bank Ltd.	7.24
Australia & New Zealand Banking Group Ltd.	6.31
Westpac Banking Corp. Ltd.	5.53
Westfield Group	3.91
Woolworths Ltd.	2.63
Rio Tinto Ltd.	2.39
Wesfarmers Ltd.	2.39
AMP Ltd.	2.21
TOTAL	51.21	%

FUND PERFORMANCE OVERVIEW 1

Fund Performance Overview

iSHARES^® MSCI BRAZIL INDEX FUND

Performance as of 2/28/05

The iShares MSCI Brazil Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the Brazilian market, as measured by the MSCI Brazil Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which have a similar investment profile as the Index. For the six months ended February 28, 2005, the Fund returned 51.59%, while the Index returned 54.52%.

Average Annual Total Returns						Cumulative Total Returns
Year Ended 2/28/05			Inception to 2/28/05			Inception to 2/28/05
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
53.77%	52.83%	56.53%	7.70%	7.59%	10.35%	41.08%	40.42%	57.90%

Total returns for the periods since inception are calculated from the inception date of the Fund (7/10/00). “Average annual total returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative total returns” represent the total change in value of an investment over the periods indicated.

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

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until several days after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (7/14/00), the NAV of the Fund is used as a proxy for the secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

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

PORTFOLIO ALLOCATION As of 2/28/05
Sector	% of Net Assets
Basic Materials	34.58	%
Energy	24.29
Financial	13.63
Communications	10.23
Consumer Non-Cyclical	7.66
Utilities	5.84
Industrial	2.98
Consumer Cyclical	0.35
Short-Term and Other Net Assets	0.44
TOTAL	100.00	%

TOP TEN FUND HOLDINGS As of 2/28/05
Security	% of Net Assets
Petroleo Brasileiro SA Preferred	12.98	%
Petroleo Brasileiro SA	11.31
Companhia Vale do Rio Doce Class A Preferred	10.08
Companhia Vale do Rio Doce ADR	8.72
Banco Itau Holding Financeira SA Preferred	5.53
Companhia de Bebidas das Americas Preferred	4.73
Banco Bradesco SA Preferred	4.68
Tele Norte Leste Participacoes SA Preferred	3.43
Unibanco Uniao de Bancos Brasileiros SA	3.22
Companhia Siderurgica Nacional SA	3.13
TOTAL	67.81	%

2 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® MSCI CANADA INDEX FUND

Performance as of 2/28/05

The iShares MSCI Canada Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the Canadian market, as measured by the MSCI Canada Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which have a similar investment profile as the Index. For the six months ended February 28, 2005, the Fund returned 23.86%, while the Index returned 23.81%.

Average Annual Total Returns
Year Ended 2/28/05			Five Years Ended 2/28/05			Inception to 2/28/05
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
21.49%	21.18%	20.95%	7.38%	6.83%	6.15%	11.73%	11.75%	12.36%
Cumulative Total Returns
Year Ended 2/28/05			Five Years Ended 2/28/05			Inception to 2/28/05
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
21.49%	21.18%	20.95%	42.74%	39.15%	34.74%	170.39%	170.87%	184.47%

Total returns for the periods since inception are calculated from the inception date of the Fund (3/12/96). “Average annual total returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative total returns” represent the total change in value of an investment over the periods indicated.

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until several days after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (3/18/96), the NAV of the Fund is used as a proxy for the secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

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

PORTFOLIO ALLOCATION As of 2/28/05
Sector	% of Net Assets
Financial	35.49	%
Energy	23.94
Basic Materials	16.88
Communications	6.97
Industrial	6.09
Consumer Cyclical	3.39
Consumer Non-Cyclical	3.15
Diversified	1.89
Technology	1.79
Utilities	0.19
Short-Term and Other Net Assets	0.22
TOTAL	100.00	%

TOP TEN FUND HOLDINGS As of 2/28/05
Security	% of Net Assets
Royal Bank of Canada	6.43	%
Manulife Financial Corp.	5.95
Bank of Nova Scotia	5.44
EnCana Corp.	5.03
Bank of Montreal	3.80
Canadian Imperial Bank of Commerce	3.33
Sun Life Financial Inc.	3.22
Canadian National Railway Co.	3.04
Suncor Energy Inc.	2.92
Alcan Inc.	2.48
TOTAL	41.64	%

FUND PERFORMANCE OVERVIEW 3

Fund Performance Overview

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

Performance as of 2/28/05

The iShares MSCI Emerging Markets Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI Emerging Markets Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which have a similar investment profile as the Index. For the six months ended February 28, 2005, the Fund returned 37.68%, while the Index returned 35.17%.

Average Annual Total Returns						Cumulative Total Returns
Year Ended 2/28/05			Inception to 2/28/05			Inception to 2/28/05
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
28.89%	27.79%	26.44%	51.92%	51.95%	49.50%	121.22%	121.30%	114.68%

Total returns for the periods since inception are calculated from the inception date of the Fund (4/7/03). “Average annual total returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative total returns” represent the total change in value of an investment over the periods indicated.

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

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until several days after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (4/11/03), the NAV of the Fund is used as a proxy for the secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

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

PORTFOLIO ALLOCATION As of 2/28/05
Sector	% of Net Assets
Financial	19.38	%
Communications	15.96
Energy	12.75
Basic Materials	12.65
Industrial	11.77
Technology	8.96
Consumer Non-Cyclical	5.90
Consumer Cyclical	4.79
Utilities	4.35
Diversified	2.45
Exchange-Traded Funds	0.85
Short-Term and Other Net Assets	0.19
TOTAL	100.00	%

TOP TEN FUND HOLDINGS As of 2/28/05
Security	% of Net Assets
Samsung Electronics Co. Ltd. GDR (South Korea)	6.86	%
POSCO ADR (South Korea)	3.17
Kookmin Bank ADR (South Korea)	2.85
Taiwan Semiconductor Manufacturing Co. Ltd. ADR (Taiwan)	2.62
AU Optronics Corp. ADR (Taiwan)	2.04
Korea Electric Power Corp. ADR (South Korea)	1.99
LUKOIL ADR (Russia)	1.84
America Movil SA de CV Series L (Mexico)	1.78
Siliconware Precision Industries Co. ADR (Taiwan)	1.73
Chunghwa Telecom Co. Ltd. ADR (Taiwan)	1.67
TOTAL	26.55	%

4 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® MSCI HONG KONG INDEX FUND

Performance as of 2/28/05

The iShares MSCI Hong Kong Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the Hong Kong market, as measured by the MSCI Hong Kong Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which have a similar investment profile as the Index. For the six months ended February 28, 2005, the Fund returned 11.93%, while the Index returned 12.11%.

Average Annual Total Returns
Year Ended 2/28/05			Five Years Ended 2/28/05			Inception to 2/28/05
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
8.74%	8.07%	9.27%	(0.23)%	(0.22)%	(0.29)%	2.03%	2.01%	4.05%
Cumulative Total Returns
Year Ended 2/28/05			Five Years Ended 2/28/05			Inception to 2/28/05
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
8.74%	8.07%	9.27%	(1.16)%	(1.07)%	(1.45)%	19.76%	19.52%	42.71%

Total returns for the periods since inception are calculated from the inception date of the Fund (3/12/96). “Average annual total returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative total returns” represent the total change in value of an investment over the periods indicated.

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until several days after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (3/18/96), the NAV of the Fund is used as a proxy for the secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

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

PORTFOLIO ALLOCATION As of 2/28/05
Sector	% of Net Assets
Financial	41.22	%
Diversified	20.69
Utilities	16.02
Consumer Cyclical	9.95
Industrial	7.08
Communications	3.64
Basic Materials	0.84
Technology	0.49
Short-Term and Other Net Assets	0.07
TOTAL	100.00	%
TOP TEN FUND HOLDINGS As of 2/28/05
Security	% of Net Assets
Hutchison Whampoa Ltd.	13.12	%
Cheung Kong Holdings Ltd.	9.60
Sun Hung Kai Properties Ltd.	8.33
CLP Holdings Ltd.	6.74
Hang Seng Bank Ltd.	6.70
Hong Kong & China Gas Co. Ltd.	4.98
Swire Pacific Ltd. Class A	4.90
BOC Hong Kong Holdings Ltd.	4.68
Esprit Holdings Ltd.	4.39
Hongkong Electric Holdings Ltd.	4.33
TOTAL	67.77	%

FUND PERFORMANCE OVERVIEW 5

Fund Performance Overview

iSHARES^® MSCI MALAYSIA INDEX FUND

Performance as of 2/28/05

The iShares MSCI Malaysia Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the Malaysian market, as measured by the MSCI Malaysia Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which have a similar investment profile as the Index. For the six months ended February 28, 2005, the Fund returned 11.14%, while the Index returned 11.48%.

Average Annual Total Returns
Year Ended 2/28/05			Five Years Ended 2/28/05			Inception to 2/28/05
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
2.51%	2.49%	3.18%	0.66%	1.50%	1.61%	(4.67)%	(4.60)%	(3.49)%
Cumulative Total Returns
Year Ended 2/28/05			Five Years Ended 2/28/05			Inception to 2/28/05
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
2.51%	2.49%	3.18%	3.36%	7.71%	8.30%	(34.85)%	(34.47)%	(27.32)%

Total returns for the periods since inception are calculated from the inception date of the Fund (3/12/96). “Average annual total returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative total returns” represent the total change in value of an investment over the periods indicated.

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. In the case of the Malaysia Fund, which has a NAV determined prior to the opening of the regular trading day on the American Stock Exchange (the “Amex”), the market return will use the midpoint of the bid/ask spread as of the opening of regular trading on the Amex. Since shares of the Fund did not trade in the secondary market until several days after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (3/18/96), the NAV of the Fund is used as a proxy for the secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

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

PORTFOLIO ALLOCATION As of 2/28/05
Sector	% of Net Assets
Financial	29.96	%
Consumer Cyclical	15.74
Industrial	13.82
Consumer Non-Cyclical	12.59
Communications	11.92
Utilities	8.93
Diversified	4.80
Technology	1.05
Energy	0.58
Basic Materials	0.49
Short-Term and Other Net Assets	0.12
TOTAL	100.00	%

TOP TEN FUND HOLDINGS As of 2/28/05
Security	% of Net Assets
Malayan Banking Bhd	11.84	%
Telekom Malaysia Bhd	5.48
Tenaga Nasional Bhd	4.88
Public Bank Bhd	4.80
Malaysia International Shipping Corp. Bhd	4.34
Sime Darby Bhd	4.18
Genting Bhd	4.06
Commerce Asset Holdings Bhd	4.05
Maxis Communications Bhd	3.58
IOI Corp. Bhd	3.21
TOTAL	50.42	%

6 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® MSCI MEXICO INDEX FUND

Performance as of 2/28/05

The iShares MSCI Mexico Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the Mexican market, as measured by the MSCI Mexico Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which have a similar investment profile as the Index. For the six months ended February 28, 2005, the Fund returned 39.75%, while the Index returned 40.06%.

Average Annual Total Returns
Year Ended 2/28/05			Five Years Ended 2/28/05			Inception to 2/28/05
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
37.96%	38.22%	39.81%	10.57%	10.81%	11.11%	14.02%	14.08%	15.89%
Cumulative Total Returns
Year Ended 2/28/05			Five Years Ended 2/28/05			Inception to 2/28/05
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
37.96%	38.22%	39.81%	65.27%	67.08%	69.32%	224.46%	225.94%	275.51%

Total returns for the periods since inception are calculated from the inception date of the Fund (3/12/96). “Average annual total returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative total returns” represent the total change in value of an investment over the periods indicated.

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

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until several days after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (3/18/96), the NAV of the Fund is used as a proxy for the secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

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

PORTFOLIO ALLOCATION As of 2/28/05
Sector	% of Net Assets
Communications	47.52	%
Industrial	13.10
Consumer Non-Cyclical	11.14
Consumer Cyclical	11.07
Basic Materials	6.72
Diversified	5.65
Financial	4.78
Short-Term and Other Net Assets	0.02
TOTAL	100.00	%

TOP TEN FUND HOLDINGS As of 2/28/05
Security	% of Net Assets
America Movil SA de CV Series L	22.77	%
Telefonos de Mexico SA de CV Series L	14.26
Cemex SA de CV Series CPO	11.84
Fomento Economico Mexicano SA de CV Class UBD	4.93
Grupo Televisa SA Series CPO	4.82
Wal-Mart de Mexico SA de CV Series V	4.75
Kimberly-Clark de Mexico SA de CV Class A	3.28
Grupo Financiero Banorte SA de CV Series O	3.24
Grupo Carso SA de CV Series A1	3.18
Grupo Modelo SA de CV Series C	2.84
TOTAL	75.91	%

FUND PERFORMANCE OVERVIEW 7

Fund Performance Overview

iSHARES^® MSCI PACIFIC EX-JAPAN INDEX FUND

Performance as of 2/28/05

The iShares MSCI Pacific ex-Japan Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the Australia, Hong Kong, New Zealand and Singapore markets, as measured by the MSCI Pacific Free ex-Japan Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which have a similar investment profile as the Index. For the six months ended February 28, 2005, the Fund returned 27.81%, while the Index returned 27.72%.

Average Annual Total Returns						Cumulative Total Returns
Year Ended 2/28/05			Inception to 2/28/05			Inception to 2/28/05
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
26.02%	24.62%	25.68%	23.38%	23.35%	23.31%	102.07%	101.89%	101.74%

Total returns for the periods since inception are calculated from the inception date of the Fund (10/25/01). “Average annual total returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative total returns” represent the total change in value of an investment over the periods indicated.

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

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

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

PORTFOLIO ALLOCATION As of 2/28/05
Sector	% of Net Assets
Financial	46.09	%
Basic Materials	12.92
Industrial	8.94
Consumer Non-Cyclical	6.74
Communications	6.36
Consumer Cyclical	6.19
Diversified	5.08
Utilities	4.25
Energy	2.16
Technology	0.59
Short-Term and Other Net Assets	0.68
TOTAL	100.00	%

TOP TEN FUND HOLDINGS As of 2/28/05
Security	% of Net Assets
BHP Billiton Ltd. (Australia)	7.37	%
Commonwealth Bank of Australia (Australia)	4.95
National Australia Bank Ltd. (Australia)	4.80
Australia & New Zealand Banking Group Ltd. (Australia)	4.20
Westpac Banking Corp. Ltd. (Australia)	3.67
Hutchison Whampoa Ltd. (Hong Kong)	2.61
Westfield Group (Australia)	2.60
Cheung Kong Holdings Ltd. (Hong Kong)	1.94
Woolworths Ltd. (Australia)	1.75
Sun Hung Kai Properties Ltd. (Hong Kong)	1.69
TOTAL	35.58	%

8 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® MSCI SINGAPORE INDEX FUND

Performance as of 2/28/05

The iShares MSCI Singapore Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the Singaporean market, as measured by the MSCI Singapore Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which have a similar investment profile as the Index. For the six months ended February 28, 2005, the Fund returned 16.55%, while the Index returned 15.35%.

Average Annual Total Returns
Year Ended 2/28/05			Five Years Ended 2/28/05			Inception to 2/28/05
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
18.93%	17.87%	18.02%	2.37%	2.84%	1.46%	(3.67)%	(3.63)%	(3.20)%
Cumulative Total Returns
Year Ended 2/28/05			Five Years Ended 2/28/05			Inception to 2/28/05
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
18.93%	17.87%	18.02%	12.45%	15.05%	7.52%	(28.46)%	(28.20)%	(25.30)%

Total returns for the periods since inception are calculated from the inception date of the Fund (3/12/96). “Average annual total returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative total returns” represent the total change in value of an investment over the periods indicated.

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until several days after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (3/18/96), the NAV of the Fund is used as a proxy for the secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

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

PORTFOLIO ALLOCATION As of 2/28/05
Sector	% of Net Assets
Financial	49.80	%
Communications	18.53
Industrial	14.10
Consumer Cyclical	6.15
Diversified	5.21
Consumer Non-Cyclical	3.51
Technology	2.66
Short-Term and Other Net Assets	0.04
TOTAL	100.00	%
TOP TEN FUND HOLDINGS As of 2/28/05
Security	% of Net Assets
DBS Group Holdings Ltd.	13.98	%
United Overseas Bank Ltd.	11.92
Singapore Telecommunications Ltd.	11.70
Oversea-Chinese Banking Corp.	10.73
Singapore Press Holdings Ltd.	4.65
Singapore Airlines Ltd.	3.98
Keppel Corp. Ltd.	3.82
City Developments Ltd.	3.42
Venture Corp. Ltd.	3.05
Singapore Technologies Engineering Ltd.	3.01
TOTAL	70.26	%

FUND PERFORMANCE OVERVIEW 9

Fund Performance Overview

iSHARES^® MSCI SOUTH AFRICA INDEX FUND

Performance as of 2/28/05

The iShares MSCI South Africa Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the South African market, as measured by the MSCI South Africa Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which have a similar investment profile as the Index. For the six months ended February 28, 2005, the Fund returned 36.86%, while the Index returned 37.69%.

Average Annual Total Returns						Cumulative Total Returns
Year Ended 2/28/05			Inception to 2/28/05			Inception to 2/28/05
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
40.56%	39.27%	41.11%	45.43%	45.28%	47.27%	117.22%	116.76%	122.84%

Total returns for the periods since inception are calculated from the inception date of the Fund (2/3/03). “Average annual total returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative total returns” represent the total change in value of an investment over the periods indicated.

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

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until several days after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (2/7/03), the NAV of the Fund is used as a proxy for the secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

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

PORTFOLIO ALLOCATION As of 2/28/05
Sector	% of Net Assets
Financial	32.36	%
Basic Materials	17.60
Communications	14.14
Energy	10.15
Consumer Cyclical	9.05
Diversified	8.56
Consumer Non-Cyclical	4.51
Industrial	3.58
Short-Term and Other Net Assets	0.05
TOTAL	100.00	%

TOP TEN FUND HOLDINGS As of 2/28/05
Security	% of Net Assets
Sasol Ltd.	10.15	%
Standard Bank Group Ltd.	9.62
MTN Group Ltd.	7.83
Old Mutual PLC	7.47
FirstRand Ltd.	5.11
Sanlam Ltd.	4.32
Impala Platinum Holdings Ltd.	3.92
Telkom South Africa Ltd.	3.44
AngloGold Ashanti Ltd.	3.34
Gold Fields Ltd.	2.89
TOTAL	58.09	%

10 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® MSCI SOUTH KOREA INDEX FUND

Performance as of 2/28/05

The iShares MSCI South Korea Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the South Korean market, as measured by the MSCI South Korea Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which have a similar investment profile as the Index. For the six months ended February 28, 2005, the Fund returned 41.92%, while the Index returned 41.92%.

Average Annual Total Returns						Cumulative Total Returns
Year Ended 2/28/05			Inception to 2/28/05			Inception to 2/28/05
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
25.32%	25.04%	26.27%	11.85%	12.07%	12.29%	71.41%	72.98%	74.63%

Total returns for the periods since inception are calculated from the inception date of the Fund (5/9/00). “Average annual total returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative total returns” represent the total change in value of an investment over the periods indicated.

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

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. In the case of the South Korea Fund, the NAV of which is determined prior to the opening of the regular trading day on the American Stock Exchange (the “AMEX”), the market return is calculated using the midpoint of the bid/ask spread as of the opening of regular trading on the AMEX. Since shares of the Fund did not trade in the secondary market until several days after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (5/12/00), the NAV of the Fund is used as a proxy for the secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

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

PORTFOLIO ALLOCATION As of 2/28/05
Sector	% of Net Assets
Industrial	40.09	%
Financial	15.58
Consumer Cyclical	13.24
Basic Materials	10.26
Communications	7.26
Consumer Non-Cyclical	4.48
Energy	4.46
Utilities	2.96
Short-Term and Other Net Assets	1.67
TOTAL	100.00	%

TOP TEN FUND HOLDINGS As of 2/28/05
Security	% of Net Assets
Samsung Electronics Co. Ltd.	23.29	%
POSCO	7.47
Kookmin Bank	6.29
Hyundai Motor Co. Ltd.	4.21
LG Electronics Inc.	4.04
Shinhan Financial Group Ltd.	3.22
Samsung SDI Co. Ltd.	3.02
Korea Electric Power Corp.	2.96
SK Telecom Co. Ltd.	2.91
SK Corp.	2.76
TOTAL	60.17	%

FUND PERFORMANCE OVERVIEW 11

Fund Performance Overview

iSHARES^® MSCI TAIWAN INDEX FUND

Performance as of 2/28/05

The iShares MSCI Taiwan Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the Taiwanese market, as measured by the MSCI Taiwan Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which have a similar investment profile as the Index. For the six months ended February 28, 2005, the Fund returned 16.27%, while the Index returned 16.50%.

Average Annual Total Returns						Cumulative Total Returns
Year Ended 2/28/05			Inception to 2/28/05			Inception to 2/28/05
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(1.31)%	0.20%	(0.98)%	(8.31)%	(7.81)%	(7.46)%	(33.48)%	(31.74)%	(30.54)%

Total returns for the periods since inception are calculated from the inception date of the Fund (6/20/00). “Average annual total returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative total returns” represent the total change in value of an investment over the periods indicated.

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. In the case of the Taiwan Fund, the NAV of which is determined prior to the opening of the regular trading day on the American Stock Exchange (the “AMEX”), the market return is calculated using the midpoint of the bid/ask spread as of the opening of regular trading on the AMEX. Since shares of the Fund did not trade in the secondary market until several days after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (6/23/00), the NAV of the Fund is used as a proxy for the secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

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

PORTFOLIO ALLOCATION As of 2/28/05
Sector	% of Net Assets
Technology	32.92	%
Financial	22.84
Industrial	21.41
Basic Materials	13.42
Consumer Cyclical	4.89
Communications	3.44
Consumer Non-Cyclical	0.90
Short-Term and Other Net Assets	0.18
TOTAL	100.00	%
TOP TEN FUND HOLDINGS As of 2/28/05
Security	% of Net Assets
Taiwan Semiconductor Manufacturing Co. Ltd.	14.09	%
Hon Hai Precision Industry Co. Ltd.	5.29
United Microelectronics Corp.	4.78
Cathay Financial Holding Co. Ltd.	4.28
China Steel Corp.	4.06
Nan Ya Plastic Corp.	3.47
Formosa Plastic Co.	3.28
Mega Financial Holding Co. Ltd.	2.85
AU Optronics Corp.	2.79
Asustek Computer Inc.	2.79
TOTAL	47.68	%

12 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Shareholder Expenses

iSHARES^®, INC.

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

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from September 1, 2004 to February 28, 2005.

Actual Expenses

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

Hypothetical Example for Comparison Purposes

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

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

iShares MSCI Index Fund	Beginning Account Value (September 1, 2004)		Ending Account Value (February 28, 2005)		Annualized Expense Ratio		Expenses Paid During Period* (September 1, 2004 to February 28, 2005)
Australia
Actual	$	1,000.00	$	1,356.90	0.58	%	$	3.39
Hypothetical (5% return before expenses)		1,000.00		1,021.92	0.58			2.91
Brazil
Actual		1,000.00		1,515.90	0.74			4.62
Hypothetical (5% return before expenses)		1,000.00		1,021.12	0.74			3.71
Canada
Actual		1,000.00		1,238.60	0.58			3.22
Hypothetical (5% return before expenses)		1,000.00		1,021.92	0.58			2.91
Emerging Markets
Actual		1,000.00		1,376.80	0.77			4.54
Hypothetical (5% return before expenses)		1,000.00		1,020.98	0.77			3.86

SHAREHOLDER EXPENSES 13

Shareholder Expenses (Continued)

iSHARES^®, INC.

iShares MSCI Index Fund	Beginning Account Value (September 1, 2004)		Ending Account Value (February 28, 2005)		Annualized Expense Ratio		Expenses Paid During Period* (September 1, 2004 to February 28, 2005)
Hong Kong
Actual	$	1,000.00	$	1,119.30	0.58	%	$	3.05
Hypothetical (5% return before expenses)		1,000.00		1,021.92	0.58			2.91
Malaysia
Actual		1,000.00		1,111.40	0.58			3.04
Hypothetical (5% return before expenses)		1,000.00		1,021.92	0.58			2.91
Mexico
Actual		1,000.00		1,397.50	0.58			3.45
Hypothetical (5% return before expenses)		1,000.00		1,021.92	0.58			2.91
Pacific ex-Japan
Actual		1,000.00		1,278.10	0.50			2.82
Hypothetical (5% return before expenses)		1,000.00		1,022.32	0.50			2.51
Singapore
Actual		1,000.00		1,165.50	0.58			3.11
Hypothetical (5% return before expenses)		1,000.00		1,021.92	0.58			2.91
South Africa
Actual		1,000.00		1,368.60	0.73			4.29
Hypothetical (5% return before expenses)		1,000.00		1,021.41	0.73			3.66
South Korea
Actual		1,000.00		1,419.20	0.74			4.44
Hypothetical (5% return before expenses)		1,000.00		1,021.12	0.74			3.71
Taiwan
Actual		1,000.00		1,162.70	0.76			4.08
Hypothetical (5% return before expenses)		1,000.00		1,021.03	0.76			3.81

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

14 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI AUSTRALIA INDEX FUND

February 28, 2005

Security	Shares	Value
COMMON STOCKS – 99.04%
AIRLINES – 0.53%
Qantas Airways Ltd.	639,909	$	1,844,010
			1,844,010
BANKS – 28.22%
Australia & New Zealand Banking Group Ltd.	1,281,923		21,747,278
Commonwealth Bank of Australia	896,355		25,780,232
National Australia Bank Ltd.	1,091,752		24,960,595
Suncorp-Metway Ltd.	382,665		5,735,340
Westpac Banking Corp. Ltd.	1,255,517		19,046,787
			97,270,232
BEVERAGES – 3.19%
Coca-Cola Amatil Ltd.	365,593		2,374,049
Foster’s Group Ltd.	1,408,268		5,824,538
Lion Nathan Ltd.	207,871		1,244,239
Southcorp Ltd.	447,752		1,549,753
			10,992,579
BIOTECHNOLOGY – 0.48%
Sonic Healthcare Ltd.	172,660		1,659,871
			1,659,871
BUILDING MATERIALS – 3.15%
Boral Ltd.	405,333		2,059,351
CSR Ltd.	647,281		1,238,364
James Hardie Industries NV	324,659		1,554,115
Rinker Group Ltd.	662,765		5,997,950
			10,849,780
COMMERCIAL SERVICES – 1.25%
Brambles Industries Ltd.1	681,390		4,294,916
			4,294,916
COMPUTERS – 0.37%
Computershare Ltd.	276,855		1,265,941
			1,265,941
DIVERSIFIED FINANCIAL SERVICES – 2.51%
Australian Stock Exchange Ltd.1	72,653		1,194,461
Macquarie Bank Ltd.	156,170		6,099,597
Perpetual Trustees Australia Ltd.1	27,160		1,343,248
			8,637,306
ENGINEERING & CONSTRUCTION – 0.22%
Leighton Holdings Ltd.1	96,418		765,414
			765,414
ENTERTAINMENT – 2.00%
Aristocrat Leisure Ltd.1	219,220		1,874,280
TABCORP Holdings Ltd.	365,657		5,027,594
			6,901,874
FOOD – 2.63%
Woolworths Ltd.	734,416		9,071,731
			9,071,731
FOREST PRODUCTS & PAPER – 0.33%
PaperlinX Ltd.1	315,541		1,129,720
			1,129,720
GAS – 1.05%
Australian Gas Light Co. Ltd.	320,227		3,622,524
			3,622,524
HEALTH CARE-PRODUCTS – 0.26%
Cochlear Ltd.1	38,137		881,004
			881,004
HOLDING COMPANIES - DIVERSIFIED – 0.56%
Patrick Corp. Ltd.1	397,172		1,932,758
			1,932,758
HOUSEHOLD PRODUCTS & WARES – 0.21%
Pacific Brands Ltd.	355,602		733,966
			733,966
INSURANCE – 6.19%
AMP Ltd.	1,309,773		7,611,065
AXA Asia Pacific Holdings Ltd.	493,148		1,671,643
Insurance Australia Group Ltd.	1,121,424		5,697,552
QBE Insurance Group Ltd.	523,394		6,361,249
			21,341,509
INVESTMENT COMPANIES – 1.14%
Macquarie Infrastructure Group	1,364,429		3,942,673
			3,942,673
IRON & STEEL – 1.43%
BHP Steel Ltd.1	527,201		4,055,445
OneSteel Ltd.	391,261		857,263
			4,912,708

SCHEDULES OF INVESTMENTS 15

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI AUSTRALIA INDEX FUND

February 28, 2005

Security	Shares or Principal		Value
MANUFACTURING – 3.65%
Ansell Ltd.		101,462	$	814,316
Futuris Corp. Ltd.		366,095		598,687
Orica Ltd.		191,284		2,953,498
Wesfarmers Ltd.		265,028		8,226,346
				12,592,847
MEDIA – 0.97%
John Fairfax Holdings Ltd.		651,255		2,192,075
Publishing & Broadcasting Ltd.		93,508		1,149,843
				3,341,918
MINING – 17.21%
Alumina Ltd.		817,016		3,910,990
BHP Billiton Ltd.		2,521,688		38,315,256
Iluka Resources Ltd.		163,325		736,444
Newcrest Mining Ltd.		232,897		3,189,271
Rio Tinto Ltd.1		219,240		8,228,785
WMC Resources Ltd.		822,463		4,955,604
				59,336,350
OIL & GAS – 3.26%
Origin Energy Ltd.		468,151		2,571,760
Origin Energy Ltd. Rights2		76,547		74,744
Santos Ltd.		409,678		2,894,484
Woodside Petroleum Ltd.		328,762		5,684,312
				11,225,300
PACKAGING & CONTAINERS – 1.03%
Amcor Ltd.		622,061		3,545,650
				3,545,650
PHARMACEUTICALS – 1.45%
CSL Ltd.		139,583		3,551,395
Mayne Group Ltd.		452,893		1,445,307
				4,996,702
REAL ESTATE – 10.77%
Centro Properties Group		542,618		2,183,940
Commonwealth Property Office Fund1		924,119		895,007
DB RREEF Trust		1,731,256		1,745,434
Gandel Retail Trust		1,047,794		1,305,912
General Property Trust		1,416,373		4,115,259
ING Industrial Fund		494,312		808,364
Investa Property Group1		1,021,216		1,653,812
Lend Lease Corp Ltd.		254,043		2,500,733
Macquarie Goodman Group2		736,507		2,291,930
Mirvac Group		587,626		2,108,521
Stockland Trust Group		888,632		4,063,337
Westfield Group		1,006,763		13,466,837
				37,139,086
RETAIL – 2.05%
Coles Myer Ltd.		823,779		6,245,289
Harvey Norman Holdings Ltd.		373,547		821,417
				7,066,706
TELECOMMUNICATIONS – 2.42%
Telstra Corp. Ltd.1		1,489,668		6,220,334
Transurban Group1		377,039		2,119,132
				8,339,466
TRANSPORTATION – 0.51%
Toll Holdings Ltd.		170,526		1,758,483
				1,758,483
TOTAL COMMON STOCKS (Cost: $ 287,214,427)				341,393,024
SHORT-TERM INVESTMENTS – 7.26%
COMMERCIAL PAPER3 – 1.70%
Amstel Funding Corp. 2.95%, 08/19/05	$	50,071		49,370
Amsterdam Funding Corp. 2.53%, 03/01/05 - 03/10/05		132,509		132,457
ANZ National Bank Ltd. 2.94%, 08/15/05		60,231		59,411
Barton Capital Corp. 2.53% - 2.54%, 03/07/05 - 03/17/05		266,532		266,317
Blue Ridge Asset Funding Corp. 2.53%, 03/23/05		132,509		132,304
Bryant Park Funding LLC 2.50%, 03/16/05		12,046		12,034
Chariot Funding LLC 2.54%, 03/21/05		120,462		120,292
Chesham Finance LLC 2.55%, 03/04/05		48,185		48,175
Corporate Asset Funding 2.55%, 03/24/05		60,231		60,133

16 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI AUSTRALIA INDEX FUND

February 28, 2005

Security	Principal		Value
CRC Funding LLC 2.53%, 03/11/05	$	30,116	$	30,094
Delaware Funding Corp. 2.53% - 2.54%, 03/09/05 - 03/22/05		223,388		223,141
DEPFA Bank PLC 2.28%, 05/03/05		60,231		59,991
Edison Asset Securitization 2.26% - 2.53%, 03/07/05 - 05/04/05		391,503		390,796
Fairway Finance LLC 2.53% - 2.54%, 03/09/05 - 03/22/05		114,839		114,715
Falcon Asset Securitization Corp. 2.53% - 2.54%, 03/14/05 - 03/18/05		464,458		463,916
Ford Credit Auto Receivables 2.28% - 2.55%, 03/15/05 - 04/27/05		279,714		279,200
Ford Credit Floorplan Motown 2.54% - 2.56%, 03/04/05 - 03/18/05		150,578		150,516
Fortis Funding LLC 2.35%, 05/09/05		168,647		167,888
General Electric Capital Corp. 2.53% - 2.74%, 03/08/05 - 07/07/05		265,017		264,329
Giro Funding US Corp. 2.54%, 03/14/05 - 03/18/05		145,219		145,064
Grampian Funding LLC 2.49% - 3.00%, 03/23/05 - 08/22/05		355,364		350,994
Jupiter Securitization Corp. 2.53%, 03/03/05 - 03/22/05		549,586		549,087
Kitty Hawk Funding Corp. 2.54%, 03/15/05		180,694		180,516
Liberty Street Funding Corp. 2.53% - 2.54%, 03/14/05 - 03/16/05		66,254		66,190
Moat Funding LLC 2.50%, 03/23/05		24,092		24,056
Nordea North America Inc. 2.74%, 07/11/05		60,231		59,626
Park Avenue Receivables Corp. 2.53%, 03/10/05 - 03/11/05		188,165		188,037
Park Granada LLC 2.55% - 2.58%, 03/18/05 - 03/21/05		84,324		84,216
Preferred Receivables Funding Corp. 2.53% - 2.54%, 03/14/05 - 03/21/05		255,957		255,603
Ranger Funding Co. LLC 2.54%, 03/04/05		35,822		35,814
Santander Central Hispano 2.75%, 07/08/05		150,578		149,097
Scaldis Capital LLC 2.75%, 07/08/05		30,149		29,852
Ticonderoga Master Funding Ltd. 2.54% - 2.57%, 03/21/05 - 03/24/05		204,290		203,991
Tulip Funding Corp. 2.54% - 2.55%, 03/01/05		201,083		201,083
UBS Finance (Delaware) 2.62%, 03/01/05		240,925		240,925
Windmill Funding Corp. 2.55%, 03/08/05		42,162		42,141
Yorktown Capital LLC 2.53%, 03/17/05		42,162		42,114
				5,873,485
FLOATING RATE NOTES3 – 2.67%
Allstate Life Global Funding II 2.58%, 01/10/064		55,413		55,415
American Express Centurion Bank 2.58%, 01/24/06		180,694		180,694
American Express Credit Corp. 2.68%, 10/26/05		240,925		241,004
Bank of Nova Scotia 2.52% - 2.57%, 09/26/05 - 01/03/06		78,301		78,280
Beta Finance Inc. 2.53% - 2.79%, 03/15/05 - 10/27/05		451,734		451,770

SCHEDULES OF INVESTMENTS 17

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI AUSTRALIA INDEX FUND

February 28, 2005

Security	Principal		Value
Canadian Imperial Bank of Commerce 2.52% - 2.61%, 09/13/05 - 12/14/05	$	409,572	$	409,492
CC USA Inc. 2.53% - 2.66%, 05/04/05 - 07/29/05		240,925		240,906
Commodore CDO Ltd. 2.55%, 12/12/05		30,116		30,116
Den Danske Bank NY 2.52% - 2.60%, 08/12/05 - 10/17/05		361,387		361,331
DEPFA Bank PLC 2.47%, 12/15/05		120,462		120,462
Dorada Finance Inc. 2.66%, 07/29/05		99,984		99,971
Fairway Finance LLC 2.55%, 03/14/05 - 06/20/05		180,694		180,692
Fifth Third Bancorp 2.57%, 02/23/064		240,925		240,925
Five Finance Inc. 2.62% - 2.64%, 04/29/05 - 02/27/06		156,601		156,608
General Electric Capital Corp. 2.69%, 03/09/06		54,208		54,283
General Electric Commercial Equipment Financing LLC 2.56%, 11/20/05		51,447		51,447
Hartford Life Global Funding Trust 2.58%, 02/15/06		120,462		120,462
HBOS Treasury Services PLC 2.55% - 2.56%, 01/10/06 - 01/24/06		361,387		361,386
K2 USA LLC 2.55% - 2.64%, 06/10/05 - 02/15/06		542,081		542,088
Leafs LLC 2.60%, 01/20/06 - 02/21/064		126,486		126,486
Links Finance LLC 2.54% - 2.77%, 04/15/05 - 02/06/06		493,896		494,024
Lothian Mortgages PLC 2.61%, 01/24/06		240,925		240,925
MetLife Funding Inc. 2.58%, 03/06/06		180,694		180,694
National City Bank (Ohio) 2.52% - 2.58%, 06/10/05 - 08/09/05		301,156		301,134
Nationwide Building Society 2.58% - 2.64%, 01/06/06 - 01/27/064		445,711		445,805
Norddeutsche Landesbank 2.63%, 07/27/05		120,462		120,445
Northern Rock PLC 2.60% - 2.62%, 10/25/05 - 02/03/064		361,387		361,387
Permanent Financing PLC 2.54% - 2.57%, 03/10/05 - 09/12/05		325,249		325,249
Sedna Finance Inc. 2.56%, 01/10/06 - 01/17/06		66,254		66,240
Sigma Finance Inc. 2.54% - 2.79%, 08/17/05 - 01/09/06		614,359		614,389
Tango Finance Corp. 2.55% - 2.74%, 04/07/05 - 09/15/05		370,663		370,648
Wachovia Asset Securitization Inc. 2.64%, 03/25/05		361,387		361,388
Wells Fargo & Co. 2.56%, 03/15/064		60,231		60,240
WhistleJacket Capital LLC 2.45% - 2.57%, 06/15/05 - 01/17/06		421,619		421,581
White Pine Finance LLC 2.54% - 2.80%, 03/29/05 - 01/13/06		658,930		658,882

18 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI AUSTRALIA INDEX FUND

February 28, 2005

Security	Shares or Principal		Value
Winston Funding Ltd. 2.75%, 04/25/05	$	86,010	$	86,010
				9,212,859
MEDIUM-TERM NOTES3 – 0.04%
CC USA Inc. 1.29%, 04/15/054		120,462		120,461
				120,461
MONEY MARKET FUNDS3 – 0.19%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares5		566,201		566,201
BlackRock Temp Cash Money Market Fund		22,465		22,465
Short-Term Investment Co. - Prime Money Market Portfolio, Institutional Shares		45,454		45,454
				634,120
REPURCHASE AGREEMENTS3 – 1.36%
Bank of America N.A. Repurchase Agreements, dated 2/28/05, due 3/1/05, with a total maturity value of $2,710,604 and effective yields of 2.62% - - 2.63%.6	$	2,710,407		2,710,407
Merrill Lynch Government Securities Inc. Repurchase Agreement, dated 2/28/05, due 3/1/05, with a maturity value of $1,987,776 and an effective yield of 2.63%.6		1,987,631		1,987,631
				4,698,038
TIME DEPOSITS3 – 1.21%
Abbey National Treasury Services PLC 1.39%, 04/08/05		84,324		84,322
Banco Bilbao Vizcaya Argentaria SA 2.50% - 2.51%, 03/21/05 - 03/22/05		180,694		180,694
BNP Paribas (New York) 2.78% - 3.03%, 07/11/05 - 08/23/05		168,647		168,647
Credit Suisse First Boston 2.55%, 03/22/05		120,462		120,462
Deutsche Bank AG 2.51%, 03/01/05		200,611		200,611
First Tennessee Bank 2.53%, 03/14/05 - 03/21/05		1,301,156		301,156
HBOS Treasury Services PLC 1.24% - 2.50%, 03/22/05 - 04/01/05		197,558		197,557
Key Bank N.A. 2.51% - 2.55%, 03/01/05 - 03/18/05		722,775		722,775
Natexis Banques 2.50% - 2.98%, 03/22/05 - 08/18/05		210,809		210,809
Norddeutsche Landesbank 2.11%, 06/07/05		120,462		120,456
Royal Bank of Scotland 2.54%, 03/22/05		30,116		30,116
Societe Generale 2.53%, 03/22/05		12,046		12,046
Toronto-Dominion Bank 1.22% - 2.66%, 03/23/05 - 11/09/05		481,850		481,828
UBS AG 2.67%, 11/09/05		48,185		48,182
Washington Mutual Bank 2.55%, 03/21/05 - 03/22/05		554,127		554,128
Wells Fargo Bank N.A. 2.52% - 2.53%, 03/17/05 - 03/22/05		740,844		740,842
				4,174,631
U.S. GOVERNMENT AGENCY NOTES3 – 0.09%
Federal Home Loan Mortgage Corp. 1.63% - 2.06%, 04/15/05 - 05/31/05		144,378		144,098

SCHEDULES OF INVESTMENTS 19

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI AUSTRALIA INDEX FUND

February 28, 2005

Security	Principal		Value
Federal National Mortgage Association 2.33%, 07/22/05	$	180,694	$	179,025
				323,123
TOTAL SHORT-TERM INVESTMENTS (Cost: $25,036,717)				25,036,717
TOTAL INVESTMENTS IN SECURITIES – 106.30% (Cost: $312,251,144)				366,429,741
Other Assets, Less Liabilities – (6.30%)				(21,727,963	)
NET ASSETS – 100.00%			$	344,701,778

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

² Non-income earning security.

³ All or a portion of these securities represent an investment of securities lending collateral. See Note 5.

⁴ All or a portion of this security is exempt from registration pursuant to Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

⁵ The Fund’s investment adviser is an affiliate of the issuer. See Note 2.

⁶ Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 2.95% to 7.85% and maturity dates ranging from 8/1/08 to 1/1/44.

See notes to financial statements.

20 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI BRAZIL INDEX FUND

February 28, 2005

Security	Shares	Value
COMMON STOCKS – 31.46%
AGRICULTURE – 1.09%
Souza Cruz SA	379,600	$	5,110,776
			5,110,776
BANKS – 3.42%
Banco Bradesco SA1	29,797		945,296
Unibanco Uniao de Bancos Brasileiros SA	1,972,410		15,032,973
			15,978,269
ELECTRIC – 1.49%
Centrais Eletricas Brasileiras SA	475,251,000		6,948,345
			6,948,345
IRON & STEEL – 3.13%
Companhia Siderurgica Nacional SA	563,584		14,652,421
			14,652,421
MINING – 8.72%
Companhia Vale do Rio Doce ADR2	1,165,311		40,785,885
			40,785,885
OIL & GAS – 11.31%
Petroleo Brasileiro SA	1,075,900		52,863,643
			52,863,643
TELECOMMUNICATIONS – 1.77%
Brasil Telecom Participacoes SA	316,092,000		3,117,201
Tele Norte Leste Participacoes SA	259,711		5,154,531
			8,271,732
WATER – 0.53%
Companhia de Saneamento Basico do Estado de Sao Paulo	40,810,000		2,478,678
			2,478,678
TOTAL COMMON STOCKS (Cost: $88,034,806)			147,089,749
PREFERRED STOCKS – 68.10%
AEROSPACE & DEFENSE – 2.55%
Embraer-Empresa Brasileira de Aeronautica SA	1,409,843		11,945,280
			11,945,280
BANKS – 10.21%
Banco Bradesco SA	690,893		21,891,532
Banco Itau Holding Financeira SA	148,437		25,842,596
			47,734,128
BEVERAGES – 4.73%
Companhia de Bebidas das Americas	74,571,000		22,128,812
			22,128,812
BUILDING MATERIALS – 0.43%
Duratex SA	42,294,000		1,996,273
			1,996,273
CHEMICALS – 1.61%
Braskem SA Class A	148,459,000		7,524,181
			7,524,181
ELECTRIC – 3.82%
Centrais Eletricas Brasileiras SA Class B	314,237,000		4,400,958
Companhia Energetica de Minas Gerais	402,164,467		10,471,289
Companhia Paranaense de Energia Class B	541,699,000		2,973,868
			17,846,115
FOOD – 1.84%
Companhia Brasileira de Distribuicao Grupo Pao de Acucar	153,594,000		3,660,466
Sadia SA	2,597,000		4,963,412
			8,623,878
FOREST PRODUCTS & PAPER – 3.76%
Aracruz Celulose SA Class B	1,855,000		7,090,589
Klabin SA	2,509,444		4,883,452
Votorantim Celulose e Papel SA	371,000		5,582,045
			17,556,086
IRON & STEEL – 5.75%
Companhia Siderurgica de Tubarao	63,070,000		4,021,254
Gerdau SA	556,678		10,973,109
Usinas Siderurgicas de Minas Gerais SA Class A	445,200		11,867,407
			26,861,770

SCHEDULES OF INVESTMENTS 21

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI BRAZIL INDEX FUND

February 28, 2005

Security	Shares or Principal		Value
MINING – 11.61%
Caemi Mineracao e Metalurgica SA1		6,913,585	$	7,141,608
Companhia Vale do Rio Doce Class A		1,632,400		47,113,663
				54,255,271
OIL & GAS – 12.98%
Petroleo Brasileiro SA		1,409,800		60,668,171
				60,668,171
TELECOMMUNICATIONS – 8.46%
Brasil Telecom Participacoes SA		1,005,039,000		6,824,034
Embratel Participacoes SA1		992,481,000		1,754,766
Tele Centro Oeste Celular Participacoes SA		908,950,802		3,428,672
Tele Norte Leste Participacoes SA		964,652		16,025,595
Telemig Celular Participacoes SA		1,069,685,000		1,618,134
Telesp Celular Participacoes SA1		2,407,265,180		6,584,520
TIM Participacoes SA		2,028,851,907		3,320,257
				39,555,978
TEXTILES – 0.35%
Companhia de Tecidos Norte de Minas		16,324,400		1,648,387
				1,648,387
TOTAL PREFERRED STOCKS (Cost: $207,921,408)				318,344,330
SHORT-TERM INVESTMENTS – 2.17%
COMMERCIAL PAPER3 – 0.44%
Amstel Funding Corp. 2.95%, 08/19/05	$	17,696		17,448
Amsterdam Funding Corp. 2.53%, 03/01/05 - 03/10/05		46,831		46,812
ANZ National Bank Ltd. 2.94%, 08/15/05		21,287		20,997
Barton Capital Corp. 2.53% - 2.54%, 03/07/05 - 03/17/05		94,198		94,122
Blue Ridge Asset Funding Corp. 2.53%, 03/23/05		46,831		46,759
Bryant Park Funding LLC 2.50%, 03/16/05		4,257		4,253
Chariot Funding LLC 2.54%, 03/21/05		42,574		42,514
Chesham Finance LLC 2.55%, 03/04/05		17,030		17,026
Corporate Asset Funding 2.55%, 03/24/05		21,287		21,252
CRC Funding LLC 2.53%, 03/11/05		10,643		10,636
Delaware Funding Corp. 2.53% - 2.54%, 03/09/05 - 03/22/05		78,950		78,862
DEPFA Bank PLC 2.28%, 05/03/05		21,287		21,202
Edison Asset Securitization 2.26% - 2.53%, 03/07/05 - 05/04/05		138,365		138,115
Fairway Finance LLC 2.53% - 2.54%, 03/09/05 - 03/22/05		40,586		40,543
Falcon Asset Securitization Corp. 2.53% - 2.54%, 03/14/05 - 03/18/05		164,148		163,957
Ford Credit Auto Receivables 2.28% - 2.55%, 03/15/05 - 04/27/05		98,856		98,676
Ford Credit Floorplan Motown 2.54% - 2.56%, 03/04/05 - 03/18/05		53,217		53,196
Fortis Funding LLC 2.35%, 05/09/05		59,603		59,335
General Electric Capital Corp. 2.53% - 2.74%, 03/08/05 - 07/07/05		93,662		93,420
Giro Funding US Corp. 2.54%, 03/14/05 - 03/18/05		51,323		51,268
Grampian Funding LLC 2.49% - 3.00%, 03/23/05 - 08/22/05		125,593		124,048
Jupiter Securitization Corp. 2.53%, 03/03/05 - 03/22/05		194,235		194,059
Kitty Hawk Funding Corp. 2.54%, 03/15/05		63,861		63,798

22 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI BRAZIL INDEX FUND

February 28, 2005

Security	Principal		Value
Liberty Street Funding Corp. 2.53% - 2.54%, 03/14/05 - 03/16/05	$	23,416	$	23,392
Moat Funding LLC 2.50%, 03/23/05		8,515		8,502
Nordea North America Inc. 2.74%, 07/11/05		21,287		21,073
Park Avenue Receivables Corp. 2.53%, 03/10/05 - 03/11/05		66,501		66,456
Park Granada LLC 2.55% - 2.58%, 03/18/05 - 03/21/05		29,802		29,764
Preferred Receivables Funding Corp. 2.53% - 2.54%, 03/14/05 - 03/21/05		90,460		90,335
Ranger Funding Co. LLC 2.54%, 03/04/05		12,660		12,657
Santander Central Hispano 2.75%, 07/08/05		53,217		52,694
Scaldis Capital LLC 2.75%, 07/08/05		10,655		10,550
Ticonderoga Master Funding Ltd. 2.54% - 2.57%, 03/21/05 - 03/24/05		72,200		72,094
Tulip Funding Corp. 2.54% - 2.55%, 03/01/05		71,067		71,067
UBS Finance (Delaware) 2.62%, 03/01/05		85,148		85,148
Windmill Funding Corp. 2.55%, 03/08/05		14,901		14,893
Yorktown Capital LLC 2.53%, 03/17/05		14,901		14,884
				2,075,807
FLOATING RATE NOTES3 – 0.70%
Allstate Life Global Funding II 2.58%, 01/10/064		19,584		19,585
American Express Centurion Bank 2.58%, 01/24/06		63,861		63,861
American Express Credit Corp. 2.68%, 10/26/05		85,148		85,176
Bank of Nova Scotia 2.52% - 2.57%, 09/26/05 - 01/03/06		27,673		27,666
Beta Finance Inc. 2.53% - 2.79%, 03/15/05 - 10/27/05		159,652		159,664
Canadian Imperial Bank of Commerce 2.52% - 2.61%, 09/13/05 - 12/14/05		144,751		144,723
CC USA Inc. 2.53% - 2.66%, 05/04/05 - 07/29/05		85,148		85,141
Commodore CDO Ltd. 2.55%, 12/12/05		10,643		10,643
Den Danske Bank NY 2.52% - 2.60%, 08/12/05 - 10/17/05		127,721		127,702
DEPFA Bank PLC 2.47%, 12/15/05		42,574		42,574
Dorada Finance Inc. 2.66%, 07/29/05		35,336		35,332
Fairway Finance LLC 2.55%, 03/14/05 - 06/20/05		63,861		63,860
Fifth Third Bancorp 2.57%, 02/23/064		85,148		85,148
Five Finance Inc. 2.62% - 2.64%, 04/29/05 - 02/27/06		55,346		55,349
General Electric Capital Corp. 2.69%, 03/09/06		19,158		19,185
General Electric Commercial Equipment Financing LLC 2.56%, 11/20/05		18,182		18,182
Hartford Life Global Funding Trust 2.58%, 02/15/06		42,574		42,574
HBOS Treasury Services PLC 2.55% - 2.56%, 01/10/06 - 01/24/06		127,721		127,722
K2 USA LLC 2.55% - 2.64%, 06/10/05 - 02/15/06		191,582		191,586
Leafs LLC 2.60%, 01/20/06 - 02/21/064		44,703		44,702

SCHEDULES OF INVESTMENTS 23

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI BRAZIL INDEX FUND

February 28, 2005

Security	Shares or Principal		Value
Links Finance LLC 2.54% - 2.77%, 04/15/05 - 02/06/06	$	174,553	$	174,598
Lothian Mortgages PLC 2.61%, 01/24/06		85,148		85,148
MetLife Funding Inc. 2.58%, 03/06/06		63,861		63,861
National City Bank (Ohio) 2.52% - 2.58%, 06/10/05 - 08/09/05		106,435		106,427
Nationwide Building Society 2.58% - 2.64%, 01/06/06 - 01/27/064		157,523		157,556
Norddeutsche Landesbank 2.63%, 07/27/05		42,574		42,568
Northern Rock PLC 2.60% - 2.62%, 10/25/05 - 02/03/064		127,721		127,722
Permanent Financing PLC 2.54% - 2.57%, 03/10/05 - 09/12/05		114,949		114,949
Sedna Finance Inc. 2.56%, 01/10/06 - 01/17/06		23,416		23,411
Sigma Finance Inc. 2.54% - 2.79%, 08/17/05 - 01/09/06		217,126		217,137
Tango Finance Corp. 2.55% - 2.74%, 04/07/05 - 09/15/05		131,000		130,994
Wachovia Asset Securitization Inc. 2.64%, 03/25/05		127,721		127,722
Wells Fargo & Co. 2.56%, 03/15/064		21,287		21,290
WhistleJacket Capital LLC 2.45% - 2.57%, 06/15/05 - 01/17/06		149,008		148,996
White Pine Finance LLC 2.54% - 2.80%, 03/29/05 - 01/13/06		232,879		232,863
Winston Funding Ltd. 2.75%, 04/25/05		30,398		30,398
				3,256,015
MEDIUM-TERM NOTES3 – 0.01%
CC USA Inc. 1.29%, 04/15/054		42,574		42,574
				42,574
MONEY MARKET FUNDS3 – 0.33%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares5		1,511,654		1,511,654
BlackRock Temp Cash Money Market Fund		7,940		7,940
Short-Term Investment Co. - Prime Money Market Portfolio, Institutional Shares		16,064		16,064
				1,535,658
REPURCHASE AGREEMENTS3 – 0.35%
Bank of America N.A. Repurchase Agreements, dated 2/28/05, due 3/1/05, with a total maturity value of $957,981 and effective yields of 2.62% - 2.63%.6	$	957,911		957,911
Merrill Lynch Government Securities Inc. Repurchase Agreement, dated 2/28/05, due 3/1/05, with a maturity value of $702,520 and an effective yield of 2.63%.6		702,468		702,468
				1,660,379
TIME DEPOSITS3 – 0.32%
Abbey National Treasury Services PLC 1.39%, 04/08/05		29,802		29,801
Banco Bilbao Vizcaya Argentaria SA 2.50% - 2.51%, 03/21/05 - 03/22/05		63,861		63,860

24 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI BRAZIL INDEX FUND

February 28, 2005

Security	Principal		Value
BNP Paribas (New York) 2.78% - 3.03%, 07/11/05 - 08/23/05	$	59,603	$	59,604
Credit Suisse First Boston 2.55%, 03/22/05		42,574		42,574
Deutsche Bank AG 2.51%, 03/01/05		70,900		70,900
First Tennessee Bank 2.53%, 03/14/05 - 03/21/05		106,435		106,435
HBOS Treasury Services PLC 1.24% - 2.50%, 03/22/05 - 04/01/05		69,821		69,821
Key Bank N.A. 2.51% - 2.55%, 03/01/05 - 03/18/05		255,443		255,443
Natexis Banques 2.50% - 2.98%, 03/22/05 - 08/18/05		74,504		74,504
Norddeutsche Landesbank 2.11%, 06/07/05		42,574		42,572
Royal Bank of Scotland 2.54%, 03/22/05		10,643		10,643
Societe Generale 2.53%, 03/22/05		4,257		4,257
Toronto-Dominion Bank 1.22% - 2.66%, 03/23/05 - 11/09/05		170,295		170,289
UBS AG 2.67%, 11/09/05		17,030		17,028
Washington Mutual Bank 2.55%, 03/21/05 - 03/22/05		195,840		195,840
Wells Fargo Bank N.A. 2.52% - 2.53%, 03/17/05 - 03/22/05		261,829		261,829
				1,475,400
U.S. GOVERNMENT AGENCY NOTES3 – 0.02%
Federal Home Loan Mortgage Corp. 1.63% - 2.06%, 04/15/05 - 05/31/05		51,026		50,927
Federal National Mortgage Association 2.33%, 07/22/05		63,861		63,271
				114,198
TOTAL SHORT-TERM INVESTMENTS (Cost: $10,160,031)				10,160,031
TOTAL INVESTMENTS IN SECURITIES – 101.73% (Cost: $306,116,245)				475,594,110
Other Assets, Less Liabilities – (1.73%)				(8,102,340	)
NET ASSETS – 100.00%			$	467,491,770

ADR – American Depositary Receipts

¹ Non-income earning security.

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

³ All or a portion of these securities represent an investment of securities lending collateral. See Note 5.

⁴ All or a portion of this security is exempt from registration pursuant to Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

⁵ The Fund’s investment adviser is an affiliate of the issuer. See Note 2.

⁶ Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 2.95% to 7.85% and maturity dates ranging from 8/1/08 to 1/1/44.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 25

Schedule of Investments (Unaudited)

iSHARES^® MSCI CANADA INDEX FUND

February 28, 2005

Security	Shares	Value
COMMON STOCKS – 99.78%
AEROSPACE & DEFENSE – 0.17%
CAE Inc.	113,665	$	522,460
			522,460
AUTO PARTS & EQUIPMENT – 1.21%
Magna International Inc. Class A	51,194		3,796,236
			3,796,236
BANKS – 20.32%
Bank of Montreal	267,963		11,926,664
Bank of Nova Scotia	525,186		17,090,335
Canadian Imperial Bank of Commerce	186,518		10,448,771
National Bank of Canada	96,481		4,160,802
Royal Bank of Canada	343,322		20,179,804
			63,806,376
BEVERAGES – 0.18%
Cott Corp.1	23,807		580,068
			580,068
BUILDING MATERIALS – 0.32%
Masonite International Corp.1	29,714		1,012,867
			1,012,867
CHEMICALS – 3.18%
Agrium Inc.	72,316		1,306,653
Methanex Corp.	52,268		948,240
NOVA Chemicals Corp.	50,120		2,528,018
Potash Corp. of Saskatchewan Inc.	58,712		5,217,783
			10,000,694
COMMERCIAL SERVICES – 0.25%
Quebecor World Inc.	34,368		796,850
			796,850
COMPUTERS – 0.30%
CGI Group Inc.1	144,283		933,168
			933,168
DIVERSIFIED FINANCIAL SERVICES – 0.99%
C.I. Fund Management Inc.	70,636		988,398
IGM Financial Inc.	61,218		1,871,601
TSX Group Inc.	5,329		255,785
			3,115,784
ELECTRIC – 0.19%
TransAlta Corp.	40,633		588,405
			588,405
ELECTRONICS – 0.39%
Celestica Inc.1	95,049		1,221,749
			1,221,749
ENERGY – ALTERNATE SOURCES – 0.09%
Ballard Power Systems Inc.1	48,867		292,598
			292,598
ENGINEERING & CONSTRUCTION – 0.42%
SNC-Lavalin Group Inc.	26,134		1,326,685
			1,326,685
ENTERTAINMENT – 0.14%
Intrawest Corp.	22,912		436,916
			436,916
FOOD – 1.62%
George Weston Ltd.	16,289		1,431,185
Loblaw Companies Ltd.	63,008		3,644,540
			5,075,725
FOREST PRODUCTS & PAPER – 0.56%
Abitibi-Consolidated Inc.	157,162		731,343
Domtar Inc.	111,875		1,012,991
			1,744,334
HAND & MACHINE TOOLS – 0.34%
Finning International Inc.	39,738		1,068,452
			1,068,452
HEALTH CARE-SERVICES – 0.33%
MDS Inc.	78,402		1,026,906
			1,026,906
HOLDING COMPANIES – DIVERSIFIED – 1.89%
Brascan Corp. Class A	128,733		4,754,701
Onex Corp.	71,990		1,180,116
			5,934,817
INSURANCE – 13.26%
Fairfax Financial Holdings Ltd.	5,907		969,523
Great-West Lifeco Inc.	148,578		3,523,470
Manulife Financial Corp.	403,287		18,678,107
Power Corp. of Canada	179,358		4,618,191
Power Financial Corp.	138,904		3,757,369
Sun Life Financial Inc.	317,546		10,100,918
			41,647,578

26 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI CANADA INDEX FUND

February 28, 2005

Security	Shares	Value
IRON & STEEL – 0.46%
Dofasco Inc.	44,571	$	1,455,483
			1,455,483
LODGING – 0.57%
Fairmont Hotels & Resorts Inc.	25,060		801,830
Four Seasons Hotels Inc.	13,610		984,765
			1,786,595
MANUFACTURING – 0.18%
Bombardier Inc. Class B	268,770		579,434
			579,434
MEDIA – 2.84%
Rogers Communications Inc. Class B	87,710		2,386,837
Shaw Communications Inc. Class B	98,328		1,808,653
Thomson Corp.	138,546		4,728,282
			8,923,772
MINING – 12.68%
Aber Diamond Corp.	12,709		427,011
Agnico-Eagle Mines Ltd.	42,602		625,929
Alcan Inc.	194,036		7,774,384
Barrick Gold Corp.	269,574		6,710,840
Cameco Corp.	89,679		4,096,547
Falconbridge Ltd.	46,361		1,361,562
Glamis Gold Ltd.1	69,273		1,212,221
Goldcorp Inc.	80,371		1,080,811
Inco Ltd.1	103,104		4,277,826
Kinross Gold Corp.1	165,396		1,108,740
Meridian Gold Inc.1	47,614		922,686
Noranda Inc.	94,691		1,756,390
Novelis Inc.1	38,179		900,741
Placer Dome Inc.	224,108		3,865,188
Teck Cominco Ltd. Class B	96,302		3,693,196
			39,814,072
OIL & GAS – 20.37%
Canadian Natural Resources Ltd.	130,491		7,440,705
EnCana Corp.	237,354		15,797,210
Husky Energy Inc.	71,063		2,070,840
Imperial Oil Ltd.	69,273		5,020,207
Nexen Inc.	70,353		3,568,017
Penn West Petroleum Ltd.	28,103		1,918,878
Petro-Canada	124,405		6,913,526
Precision Drilling Corp. Class A1	30,436		2,339,155
Shell Canada Ltd.	40,096		2,790,606
Suncor Energy Inc.	236,101		9,175,516
Talisman Energy Inc.	200,838		6,919,532
			63,954,192
PHARMACEUTICALS – 0.77%
Angiotech Pharmaceuticals Inc.1	41,349		687,244
Biovail Corp.1	68,020		1,081,835
QLT Corp.1	45,466		636,199
			2,405,278
PIPELINES – 3.48%
Enbridge Inc.	90,574		4,508,805
TransCanada Corp.	265,815		6,426,962
			10,935,767
REAL ESTATE – 0.92%
Brookfield Properties Corp.	51,558		2,038,915
MI Developments Inc. Class A	26,161		844,082
			2,882,997
RETAIL – 1.47%
Canadian Tire Corp. Class A	43,870		2,023,973
Hudson’s Bay Co.	42,065		431,190
Shoppers Drug Mart Corp.1	65,335		2,166,494
			4,621,657
SEMICONDUCTORS – 0.75%
ATI Technologies Inc.1	133,907		2,363,962
			2,363,962
SOFTWARE – 0.74%
Cognos Inc.1	43,676		1,882,133
Open Text Corp.1	22,375		434,139
			2,316,272
TELECOMMUNICATIONS – 4.13%
Aliant Inc.	5,808		134,710
BCE Inc.	168,797		3,948,026
Nortel Networks Corp.1	2,209,934		5,861,036
TELUS Corp.	25,776		799,995
TELUS Corp. NVS	73,748		2,210,880
			12,954,647
TRANSPORTATION – 4.27%
Canadian National Railway Co.	153,403		9,545,880
Canadian Pacific Railway Ltd.	89,142		3,181,467

SCHEDULES OF INVESTMENTS 27

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI CANADA INDEX FUND

February 28, 2005

Security	Shares	Value
CP Ships Ltd.	48,509	$	668,913
			13,396,260
TOTAL COMMON STOCKS (Cost: $233,187,237)			313,319,056
SHORT-TERM INVESTMENTS – 0.05%
MONEY MARKET FUNDS – 0.05%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares2	149,431		149,431
			149,431
TOTAL SHORT-TERM INVESTMENTS (Cost: $149,431)			149,431
TOTAL INVESTMENTS IN SECURITIES – 99.83% (Cost: $233,336,668)			313,468,487
Other Assets, Less Liabilities – 0.17%			529,515
NET ASSETS – 100.00%		$	313,998,002

NVS – Non-Voting Shares

¹ Non-income earning security.

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

See notes to financial statements.

28 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

February 28, 2005

Security	Shares	Value
COMMON STOCKS – 97.26%
ARGENTINA – 0.83%
Petrobras Energia Participaciones SA ADR1	847,997	$	11,829,558
Tenaris SA ADR	397,711		26,149,498
			37,979,056
BRAZIL – 8.28%
Aracruz Celulose SA ADR1	276,252		10,585,977
Banco Bradesco SA ADR1	1,457,664		46,251,679
Banco Itau Holding Financiera SA ADR1	589,200		51,060,074
Brasil Telecom Participacoes SA ADR	332,547		11,306,598
Companhia Brasileira de Distribuicao Grupo Pao de Acucar ADR	404,893		9,709,334
Companhia Vale do Rio Doce ADR1	1,946,880		68,140,800
Companhia Vale do Rio Doce Sponsored ADR	2,534,027		72,954,633
Empresa Brasileira de Aeronautica SA ADR1	568,256		19,184,323
Petroleo Brasileiro SA ADR	1,138,368		55,552,358
Tele Norte Leste Participacoes SA ADR1	1,382,511		22,797,606
Telesp Celular Partcipacoes SA ADR	1,191,563		8,257,532
Votorantim Celulose e Papel ADR	219,426		3,247,505
			379,048,419
CHILE – 2.22%
Banco Santander Chile SA ADR	824,169		29,051,957
Compania de Telecomunicaciones de Chile SA ADR	1,434,007		17,036,003
Enersis SA Chile ADR	2,512,640		22,060,979
Sociedad Quimica y Minera de Chile SA ADR1	449,300		33,517,780
			101,666,719
CHINA – 4.99%
Aluminum Corp. of China Ltd. Class H1	4,992,000		3,328,363
Angang New Steel Co. Ltd. Class H1	7,488,000		4,680,510
Beijing Capital International Airport Co. Ltd. Class H	6,660,000		2,668,560
BYD Co. Ltd.1	624,000		1,916,209
China Eastern Airlines Corp. Ltd. Class H1	24,128,000		4,826,126
China Life Insurance Co. Ltd. Class H1	25,376,000		17,732,599
China Petroleum and Chemical Corp. Class H	68,224,000		31,272,742
China Shipping Development Co. Ltd. Class H1	7,506,000		7,458,697
China Southern Airlines Co. Ltd.1	14,150,000		5,216,113
China Telecom Corp. Ltd. Class H	35,862,000		13,794,580
Cofco International Ltd.1	2,502,000		1,275,197
Cosco Pacific Ltd.1	2,502,000		5,565,953
Datang International Power Generation Co. Ltd. Class H1	3,336,000		2,587,820
Guangshen Railway Co. Ltd. Class H1	26,694,363		9,840,341
Huadian Power International Corp. Ltd.1	14,178,000		4,317,490
Huaneng Power International Inc. Class H1	10,008,000		7,763,461
Jiangsu Expressway Co. Ltd. Class H1	2,502,000		1,227,076
Jiangxi Copper Co. Ltd.1	8,338,000		5,078,182
Maanshan Iron & Steel Co. Ltd. Class H1	9,152,000		3,637,730
PetroChina Co. Ltd. Class H1	84,864,000		53,589,842
Ping An Insurance (Group) Co. of China Ltd. Class H	4,784,000		8,035,542
Qingling Motors Co. Ltd.1	5,838,000		958,135
Semiconductor Manufacturing International Corp.1	12,480,000		2,704,295
Sinopec Beijing Yanhua Petrochemical Co. Ltd. Class H1	5,824,000		2,762,968
Sinopec Shanghai Petrochemical Co. Ltd. Class H	10,008,000		4,330,857
Sinotrans Ltd.1	6,656,000		2,261,580
Travelsky Technology Ltd. Class H	834,000		721,810
Tsingtao Brewery Co. Ltd. Class H1	1,668,000		1,796,503
Yanzhou Coal Mining Co. Ltd. Class H	5,838,000		9,207,080

SCHEDULES OF INVESTMENTS 29

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

February 28, 2005

Security	Shares	Value
Yizheng Chemical Fibre Co. Ltd. Class H1	3,336,000	$	688,660
Zhejiang Expressway Co. Ltd. Class H1	10,008,000		7,250,175
			228,495,196
CZECH REPUBLIC – 2.76%
CEZ AS	2,435,476		46,580,096
Komercni Banka AS	119,181		19,874,290
Philip Morris CR AS	46,680		40,371,542
Unipetrol AS	2,394,500		19,326,982
			126,152,910
HONG KONG – 3.76%
Air China Ltd.	12,480,000		4,760,519
Beijing Enterprises Holdings Ltd.	1,668,000		2,448,805
China Everbright Pacific Ltd.1	9,490,000		4,532,577
China Merchants Holdings International Co. Ltd.	1,668,000		3,486,072
China Mobile Ltd.	19,760,000		64,480,362
China Overseas Land & Investment Ltd.	13,322,000		3,501,676
China Resources Enterprises Ltd.1	5,838,000		8,308,829
China Resources Land Ltd.1	13,344,000		3,353,473
China Travel International Investment Hong Kong Ltd.1	29,406,951		9,709,122
Citic Pacific Ltd.	4,587,000		13,291,987
CNOOC Ltd.1	61,227,000		35,523,381
Denway Motors Ltd.	15,808,000		6,131,335
Lenovo Group Ltd.1	17,472,000		4,984,543
Shanghai Industrial Holdings Ltd.1	1,668,000		3,764,103
Shenzhen Investment Ltd.1	4,170,000		652,302
ZTE Corp.	915,200		3,361,966
			172,291,052
HUNGARY – 2.96%
BorsodChem Rt.	214,656		2,971,527
Gedeon Richter Rt	207,772		31,939,735
MATAV Rt	1,685,681		8,793,521
Mol Magyar Olaj-es Gazipari Rt	321,152		28,304,109
OTP Bank Rt	1,587,978		63,611,201
			135,620,093
INDIA – 5.39%
HDFC Bank Ltd. ADR1	1,054,560		49,617,048
ICICI Bank Ltd. ADR1	1,554,676		35,213,411
Infosys Technologies Ltd. ADR1	837,603		63,867,229
Mahanagar Telephone Nigam Ltd. ADR	2,492,847		17,026,145
Satyam Computer Services Ltd. ADR1	1,220,572		29,769,751
Videsh Sanchar Nigam Ltd. ADR1	2,618,028		25,761,396
Wipro Ltd. ADR1	1,184,532		25,751,726
			247,006,706
INDONESIA – 2.69%
PT Aneka Tambang Tbk	31,282,455		7,265,167
PT Astra International Inc. Tbk	11,470,230		13,381,419
PT Bank Central Asia Tbk	20,850,000		7,376,046
PT Bank Danamon Indonesia Tbk	6,458,987		3,331,533
PT Bank Mandiri Tbk	21,892,500		4,280,359
PT Bank Pan Indonesia Tbk	84,718,918		4,758,718
PT Bank Rakyat Indonesia Tbk	19,167,061		6,780,678
PT Bumi Resources Tbk	38,064,000		3,494,939
PT Gudang Garam Tbk	4,170,987		6,938,504
PT Hanjaya Mandala Sampoerna Tbk	11,261,667		9,914,403
PT Kalbe Farma Tbk	126,565,156		10,800,591
PT Matahari Putra Prima Tbk	36,496,194		2,641,366
PT Perusahaan Gas Negara Tbk	11,662,500		3,432,926
PT Ramayana Lestari Sentosa Tbk	41,709,870		3,514,307
PT Semen Gresik (Persero) Tbk	224,000		430,700
PT Telekomunikasi Indonesia Tbk	66,640,186		31,853,397
PT Tempo Scan Pacific Tbk	467,376		416,511
PT United Tractors Tbk	8,175,771		2,671,532
			123,283,096
ISRAEL – 4.42%
Alvarion Ltd.	249,600		2,520,960
AudioCodes Ltd.1	356,938		4,536,682
Bank Hapoalim Ltd.	4,832,007		17,579,016
Bank Leumi Le-Israel	6,326,267		18,665,288
Check Point Software Technologies Ltd.1	673,504		14,904,644
Clal Industries and Investments Ltd.	226,720		1,112,093

30 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

February 28, 2005

Security	Shares	Value
Clal Insurance Co. Ltd.	41,184	$	840,443
ECI Telecom Ltd.	204,256		1,540,090
Elbit Systems Ltd.	318,656		7,943,500
Elite Industries Ltd.	93,600		858,834
Given Imaging Ltd.1	62,816		1,977,448
Israel Chemicals Ltd.	3,678,005		9,811,396
Israel Corp. Ltd. (The)	4,576		1,068,102
Israel Discount Bank Class A	7,252,177		9,858,024
Koor Industries Ltd.	134,841		7,510,289
Lipman Electronic Engineering Ltd.	44,096		1,291,131
Makhteshim-Agan Industries Ltd.	1,462,780		8,254,943
M-Systems Flash Disk Pioneers Ltd.1	352,352		8,322,554
NICE Systems Ltd.	41,700		1,401,987
Orbotech Ltd.1	319,904		7,309,806
Supersol Ltd.	817,583		2,293,783
Teva Pharmaceutical Industries Ltd.	2,031,964		61,634,139
United Mizrahi Bank Ltd.	2,276,524		11,072,435
			202,307,587
MEXICO – 7.34%
Alfa SA de CV Class A	1,755,295		9,890,769
America Movil SA de CV Series L	27,962,300		81,680,399
Cemex SA de CV Series CPO	3,678,005		29,442,610
Consorcio Ara SA de CV2	2,919,000		10,842,545
Controladora Comercial Mexicana SA de CV	4,044,900		4,430,819
Corporacion GEO SA de CV Series B2	1,497,600		3,773,789
Fomento Economico Mexicano SA de CV Class UBD	2,543,700		15,296,485
Grupo Carso SA de CV Series A1	125,305		676,585
Grupo Continental SA	2,215,225		4,014,337
Grupo Financiero Banorte SA de CV Series O	1,252,114		8,668,590
Grupo Mexico SA de CV Series B2	1,876,500		10,895,179
Grupo Modelo SA de CV Series C	5,475,410		16,734,637
Grupo Televisa SA Series CPO	8,610,085		27,821,169
Industrias Penoles SA de CV Series CP	376,120		2,049,853
Kimberly-Clark de Mexico SA de CV Class A	3,051,070		10,136,536
Telefonos de Mexico SA de CV Series L	30,971,655		60,704,918
TV Azteca SA de CV Series CPO2	4,003,200		2,266,558
Vitro SA de CV Series A	6,102,345		6,101,382
Wal-Mart de Mexico SA de CV Series V	8,302,582		30,532,813
			335,959,973
PERU – 0.28%
Companhia de Minas Buenaventura SA ADR	560,844		12,989,147
			12,989,147
PHILIPPINE ISLANDS – 1.67%
ABS-CBN Broadcasting Corp.	11,863,496		3,797,187
Ayala Corp.	62,924,480		9,207,057
Ayala Land Inc. Class B	11,724,327		2,015,705
Bank of the Philippine Islands	8,225,709		8,725,947
Equitable PCI Bank	4,910,231		4,355,669
Filinvest Land Inc.	103,293,112		3,400,596
Globe Telecom Inc.	238,100		4,071,760
Jollibee Foods Corp.	17,972,615		9,697,159
Manila Electric Co. Class B	4,597,660		2,606,812
Megaworld Corp.	70,911,068		2,204,825
Metropolitan Bank & Trust Co.	40		27
Petron Corp.	83,403,600		6,025,500
Philippine Long Distance Telephone Co.	518,105		13,076,999
SM Prime Holdings Inc.	46,394,830		7,297,587
			76,482,830
RUSSIA – 3.83%
JSC MMC Norilsk Nickel ADR	288,426		19,036,116
LUKOIL ADR1	602,905		84,255,974
Rostelecom ADR1	302,537		3,890,626
Surgutneftegaz ADR1	1,532,549		64,060,548
Tatneft ADR1	112,795		4,051,596
			175,294,860
SOUTH AFRICA – 13.37%
African Bank Investments Ltd.	4,049,439		12,158,694
Alexander Forbes Ltd.	4,024,108		8,089,811
Anglo American Platinum Corp. Ltd.	226,424		8,986,552

SCHEDULES OF INVESTMENTS 31

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

February 28, 2005

Security	Shares	Value
AngloGold Ashanti Ltd.1	458,474	$	16,455,870
Anglovaal Industries Ltd.	1,677,712		4,414,993
Barloworld Ltd.	878,796		16,074,473
Bidvest Group Ltd.	1,038,114		13,544,629
Bidvest Group Ltd. Warrants (Expiring 12/8/06)2	18,430		62,016
Consol Ltd.2	1,677,712		3,358,290
Edgars Consolidated Stores Ltd.	175,968		9,018,472
FirstRand Ltd.	11,953,875		28,858,200
Foschini Ltd.	3,482,366		23,730,362
Gold Fields Ltd.	1,370,766		16,333,145
Impala Platinum Holdings Ltd.	196,817		17,355,068
Imperial Holdings Ltd.2	1,087,077		19,884,239
Investec Ltd.	364,861		10,829,258
Iscor Ltd.	1,494,055		16,525,988
JD Group Ltd.	1,183,192		13,271,237
Liberty Group Ltd.1	655,876		7,379,249
Massmart Holdings Ltd.	641,326		5,035,389
Metoz Holdings Ltd.	13,457,678		6,270,133
MTN Group Ltd.	4,341,424		35,802,392
Nampak Ltd.	3,206,187		8,907,535
Naspers Ltd.	1,629,573		21,894,298
Nedcor Ltd.	1,311,233		18,105,946
Network Healthcare Holdings Ltd.2	7,197,776		6,272,382
New Africa Capital Ltd.	3,685,511		7,186,526
Old Mutual PLC	14,627,991		39,832,219
Pick’n Pay Stores Ltd.1	1,906,958		7,601,441
Reunert Ltd.	660,192		4,055,674
Sanlam Ltd.	11,340,284		26,124,502
Sappi Ltd.	808,740		10,958,018
Sasol Ltd.	2,395,362		60,348,548
Shoprite Holdings Ltd.	4,848,481		11,838,726
SPAR Group Ltd. (The)2	669,052		2,903,626
Standard Bank Group Ltd.	3,706,789		41,110,142
Steinhoff International Holdings Ltd.	699,296		1,644,749
Telkom South Africa Ltd.	503,927		9,852,362
Tiger Brands Ltd.1	669,052		11,753,047
Tongaat-Hulett Group Ltd.	605,469		6,270,912
Truworths International Ltd.1	3,717,795		11,162,912
Woolworths Holdings Ltd.	6,084,420		10,950,812
			612,212,837
SOUTH KOREA – 17.28%
Kookmin Bank ADR1	2,836,288		130,724,514
Korea Electric Power Corp. ADR1	6,510,400		91,145,600
KT Corp. ADR1	2,605,437		60,472,190
POSCO ADR	2,674,880		145,112,240
Samsung Electronics Co. Ltd. GDR3	1,212,733		314,097,847
SK Telecom Co. Ltd. ADR1	2,327,654		49,579,028
			791,131,419
TAIWAN – 9.66%
AU Optronics Corp. ADR1	5,838,148		93,410,368
Chunghwa Telecom Co. Ltd. ADR1	3,498,420		76,265,553
Siliconware Precision Industries Co. ADR1	17,312,720		79,292,256
Taiwan Semiconductor Manufacturing Co. Ltd. ADR1	13,159,883		120,018,131
United Microelectronics Corp. ADR1	19,835,473		73,391,250
			442,377,558
THAILAND – 3.78%
Advanced Info Service PCL	3,210,900		9,229,135
Bangkok Bank PCL	3,917,600		12,386,454
Bangkok Expressway PCL	7,756,200		5,877,444
Banpu PCL	1,251,000		5,818,605
Charoen Pokphand Foods PCL	28,000		2,692
Electricity Generating PCL	1,707,600		3,792,684
Kasikornbank PCL	5,963,100		10,205,985
Kiatnakin Finance PCL	3,123,100		3,019,459
Kim Eng Securities Thailand PCL	2,680,200		2,591,257
Krung Thai Bank PCL	7,127,100		1,862,320
Land and House PCL	14,938,500		3,981,518
National Finance PCL	7,500,500		2,861,440
National Petrochemical PCL	1,668,000		5,317,376
PTT Exploration & Production PCL	1,334,400		11,436,718
PTT PCL	6,844,400		38,630,531

32 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

February 28, 2005

Security	Shares		Value
Ratchaburi Electricity Generating Holding PCL		13,739,800	$	15,078,955
Sahaviriya Steel Industries PCL		61,864,200		4,849,558
Shin Corp. PCL		4,920,600		5,850,204
Siam Cement PCL		1,251,000		9,741,259
Siam City Cement PCL		250,200		1,843,648
Siam Makro PCL		5,629,500		7,649,177
Thai Airways International PCL		2,182,600		2,808,807
Thai Union Frozen Products PCL		5,004,000		3,791,900
TISCO Finance PCL		3,206,000		2,282,819
United Broadcasting Corp. PCL		3,541,300		2,313,366
				173,223,311
TURKEY – 1.58%
Adana Cimento TAS Class A		1,204,518		5,652,802
Akbank TAS		2,466,520		15,433,837
Akcansa Cimento AS		222,166		981,805
Arcelik AS		374,051		2,530,732
Dogan Yayin Holding AS		1,096,698		3,259,642
Eregli Demir ve Celik Fabrikalari TAS		963,484		5,162,194
Hurriyet Gazetecilik ve Matbaacilik AS		855,793		2,275,867
Trakya Cam Sanayii AS		494,212		1,824,545
Tupras-Turkiye Petrol Rafinerileri AS		341,180		4,536,613
Turk Hava Yollari Anonim Ortakligi		719,264		4,219,382
Turk Sise ve Cam Fabrikalari AS		2,120,802		6,933,870
Turkiye Garanti Bankasi AS		1,823,816		8,487,842
Vestel Elektronik Sanayi ve Ticaret AS		777,581		3,223,449
Yapi ve Kredi Bankasi AS		1,692,332		7,611,192
				72,133,772
VENEZUELA – 0.17%
Companhia Anonima Nacional Telefonos de Venezuela ADR		369,865		7,730,179
				7,730,179
TOTAL COMMON STOCKS (Cost: $3,463,911,369)				4,453,386,719
PREFERRED STOCKS – 1.70%
BRAZIL – 1.62%
Petroleo Brasileiro SA ADR1		1,741,534		74,015,195
				74,015,195
THAILAND – 0.08%
Siam Commercial Bank PCL		2,793,900		3,832,761
				3,832,761
TOTAL PREFERRED STOCKS (Cost: $55,049,535)				77,847,956
EXCHANGE-TRADED FUNDS – 0.85%
iShares MSCI Malaysia Index Fund1,4		970,065		6,955,366
iShares MSCI South Korea Index Fund1,4		395,057		13,562,307
iShares MSCI Taiwan Index Fund1,4		1,466,816		18,247,191
TOTAL EXCHANGE-TRADED FUNDS (Cost: $32,242,062)				38,764,864
SHORT-TERM INVESTMENTS – 15.56%
COMMERCIAL PAPER5 – 3.63%
Amstel Funding Corp. 2.95%, 08/19/05	$	1,417,836		1,397,969
Amsterdam Funding Corp. 2.53%, 03/01/05 - 03/10/05		3,752,153		3,750,643
ANZ National Bank Ltd. 2.94%, 08/15/05		1,705,524		1,682,303
Barton Capital Corp. 2.53% - 2.54%, 03/07/05 - 03/17/05		7,547,183		7,541,088
Blue Ridge Asset Funding Corp. 2.53%, 03/23/05		3,752,153		3,746,352
Bryant Park Funding LLC 2.50%, 03/16/05		341,105		340,749
Chariot Funding LLC 2.54%, 03/21/05		3,411,048		3,406,235
Chesham Finance LLC 2.55%, 03/04/05		1,364,419		1,364,129

SCHEDULES OF INVESTMENTS 33

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

February 28, 2005

Security	Principal		Value
Corporate Asset Funding 2.55%, 03/24/05	$	1,705,524	$	1,702,745
CRC Funding LLC 2.53%, 03/11/05		852,762		852,163
Delaware Funding Corp. 2.53% - 2.54%, 03/09/05 - 03/22/05		6,325,516		6,318,499
DEPFA Bank PLC 2.28%, 05/03/05		1,705,524		1,698,734
Edison Asset Securitization 2.26% - 2.53%, 03/07/05 - 05/04/05		11,085,906		11,065,898
Fairway Finance LLC 2.53% - 2.54%, 03/09/05 - 03/22/05		3,251,820		3,248,295
Falcon Asset Securitization Corp. 2.53% - 2.54%, 03/14/05 - 03/18/05		13,151,705		13,136,350
Ford Credit Auto Receivables 2.28% - 2.55%, 03/15/05 - 04/27/05		7,920,454		7,905,901
Ford Credit Floorplan Motown 2.54% - 2.56%, 03/04/05 - 03/18/05		4,263,810		4,262,057
Fortis Funding LLC 2.35%, 05/09/05		4,775,467		4,753,958
General Electric Capital Corp. 2.53% - 2.74%, 03/08/05 - 07/07/05		7,504,306		7,484,837
Giro Funding US Corp. 2.54%, 03/14/05 - 03/18/05		4,112,053		4,107,666
Grampian Funding LLC 2.49% - 3.00%, 03/23/05 - 08/22/05		10,062,592		9,938,819
Jupiter Securitization Corp. 2.53%, 03/03/05 - 03/22/05		15,562,224		15,548,109
Kitty Hawk Funding Corp. 2.54%, 03/15/05		5,116,572		5,111,528
Liberty Street Funding Corp. 2.53% - 2.54%, 03/14/05 - 03/16/05		1,876,076		1,874,238
Moat Funding LLC 2.50%, 03/23/05		682,210		681,167
Nordea North America Inc. 2.74%, 07/11/05		1,705,524		1,688,389
Park Avenue Receivables Corp. 2.53%, 03/10/05 - 03/11/05		5,328,125		5,324,513
Park Granada LLC 2.55% - 2.58%, 03/18/05 - 03/21/05		2,387,734		2,384,689
Preferred Receivables Funding Corp. 2.53% - 2.54%, 03/14/05 - 03/21/05		7,247,761		7,237,740
Ranger Funding Co. LLC 2.54%, 03/04/05		1,014,343		1,014,129
Santander Central Hispano 2.75%, 07/08/05		4,263,810		4,221,870
Scaldis Capital LLC 2.75%, 07/08/05		853,717		845,304
Ticonderoga Master Funding Ltd. 2.54% - 2.57%, 03/21/05 - 03/24/05		5,784,728		5,776,256
Tulip Funding Corp. 2.54% - 2.55%, 03/01/05		5,693,926		5,693,927
UBS Finance (Delaware) 2.62%, 03/01/05		6,822,096		6,822,096
Windmill Funding Corp. 2.55%, 03/08/05		1,193,867		1,193,275
Yorktown Capital LLC 2.53%, 03/17/05		1,193,867		1,192,524
				166,315,144
FLOATING RATE NOTES5 – 5.70%
Allstate Life Global Funding II 2.58%, 01/10/063		1,569,082		1,569,135
American Express Centurion Bank 2.58%, 01/24/06		5,116,572		5,116,572
American Express Credit Corp. 2.68%, 10/26/05		6,822,096		6,824,345
Bank of Nova Scotia 2.52% - 2.57%, 09/26/05 - 01/03/06		2,217,181		2,216,610

34 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

February 28, 2005

Security	Principal		Value
Beta Finance Inc. 2.53% - 2.79%, 03/15/05 - 10/27/05	$	12,791,430	$	12,792,443
Canadian Imperial Bank of Commerce 2.52% - 2.61%, 09/13/05 - 12/14/05		11,597,563		11,595,290
CC USA Inc. 2.53% - 2.66%, 05/04/05 - 07/29/05		6,822,096		6,821,555
Commodore CDO Ltd. 2.55%, 12/12/05		852,762		852,763
Den Danske Bank NY 2.52% - 2.60%, 08/12/05 - 10/17/05		10,233,144		10,231,544
DEPFA Bank PLC 2.47%, 12/15/05		3,411,048		3,411,048
Dorada Finance Inc. 2.66%, 07/29/05		2,831,170		2,830,820
Fairway Finance LLC 2.55%, 03/14/05 - 06/20/05		5,116,572		5,116,520
Fifth Third Bancorp 2.57%, 02/23/063		6,822,096		6,822,096
Five Finance Inc. 2.62% - 2.64%, 04/29/05 - 02/27/06		4,434,362		4,434,541
General Electric Capital Corp. 2.69%, 03/09/06		1,534,972		1,537,104
General Electric Commercial Equipment Financing LLC 2.56%, 11/20/05		1,456,786		1,456,786
Hartford Life Global Funding Trust 2.58%, 02/15/06		3,411,048		3,411,048
HBOS Treasury Services PLC 2.55% - 2.56%, 01/10/06 - 01/24/06		10,233,144		10,233,144
K2 USA LLC 2.55% - 2.64%, 06/10/05 - 02/15/06		15,349,716		15,349,895
Leafs LLC 2.60%, 01/20/06 - 02/21/063		3,581,600		3,581,601
Links Finance LLC 2.54% - 2.77%, 04/15/05 - 02/06/06		13,985,297		13,988,867
Lothian Mortgages PLC 2.61%, 01/24/06		6,822,096		6,822,096
MetLife Funding Inc. 2.58%, 03/06/06		5,116,572		5,116,572
National City Bank (Ohio) 2.52% - 2.58%, 06/10/05 - 08/09/05		8,527,620		8,526,997
Nationwide Building Society 2.58% - 2.64%, 01/06/06 - 01/27/063		12,620,878		12,623,537
Norddeutsche Landesbank 2.63%, 07/27/05		3,411,048		3,410,561
Northern Rock PLC 2.60% - 2.62%, 10/25/05 - 02/03/063		10,233,144		10,233,144
Permanent Financing PLC 2.54% - 2.57%, 03/10/05 - 09/12/05		9,209,830		9,209,830
Sedna Finance Inc. 2.56%, 01/10/06 - 01/17/06		1,876,076		1,875,689
Sigma Finance Inc. 2.54% - 2.79%, 08/17/05 - 01/09/06		17,396,345		17,397,186
Tango Finance Corp. 2.55% - 2.74%, 04/07/05 - 09/15/05		10,495,795		10,495,360
Wachovia Asset Securitization Inc. 2.64%, 03/25/05		10,233,144		10,233,144
Wells Fargo & Co. 2.56%, 03/15/063		1,705,524		1,705,770
WhistleJacket Capital LLC 2.45% - 2.57%, 06/15/05 - 01/17/06		11,938,668		11,937,633

SCHEDULES OF INVESTMENTS 35

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

February 28, 2005

Security	Shares or Principal		Value
White Pine Finance LLC 2.54% - 2.80%, 03/29/05 - 01/13/06	$	18,658,433	$	18,657,051
Winston Funding Ltd. 2.75%, 04/25/05		2,435,488		2,435,488
				260,873,785
MEDIUM-TERM NOTES5 – 0.07%
CC USA Inc. 1.29%, 04/15/053		3,411,048		3,411,006
				3,411,006
MONEY MARKET FUNDS5 – 0.47%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares4		19,743,472		19,743,472
BlackRock Temp Cash Money Market Fund		636,134		636,134
Short-Term Investment Co. – Prime Money Market Portfolio, Institutional Shares		1,287,075		1,287,075
				21,666,681
REPURCHASE AGREEMENTS5 – 2.91%
Bank of America N.A. Repurchase Agreements, dated 2/28/05, due 3/1/05, with a total maturity value of $76,754,188 and effective yields of 2.62% - 2.63%.6	$	76,748,580		76,748,580
Merrill Lynch Government Securities Inc. Repurchase Agreement, dated 2/28/05, due 3/1/05, with a maturity value of $56,286,404 and an effective yield of 2.63%.6		56,282,292		56,282,292
				133,030,872
TIME DEPOSITS5 – 2.58%
Abbey National Treasury Services PLC 1.39%, 04/08/05		2,387,734		2,387,696
Banco Bilbao Vizcaya Argentaria SA 2.50% - 2.51%, 03/21/05 - 03/22/05		5,116,572		5,116,579
BNP Paribas (New York) 2.78% - 3.03%, 07/11/05 - 08/23/05		4,775,467		4,775,467
Credit Suisse First Boston 2.55%, 03/22/05		3,411,048		3,411,048
Deutsche Bank AG 2.51%, 03/01/05		5,680,543		5,680,544
First Tennessee Bank 2.53%, 03/14/05 - 03/21/05		8,527,620		8,527,620
HBOS Treasury Services PLC 1.24% - 2.50%, 03/22/05 - 04/01/05		5,594,119		5,594,100
Key Bank N.A. 2.51% - 2.55%, 03/01/05 - 03/18/05		20,466,288		20,466,288
Natexis Banques 2.50% - 2.98%, 03/22/05 - 08/18/05		5,969,334		5,969,334
Norddeutsche Landesbank 2.11%, 06/07/05		3,411,048		3,410,866
Royal Bank of Scotland 2.54%, 03/22/05		852,762		852,763
Societe Generale 2.53%, 03/22/05		341,105		341,105
Toronto-Dominion Bank 1.22% - 2.66%, 03/23/05 - 11/09/05		13,644,192		13,643,594
UBS AG 2.67%, 11/09/05		1,364,419		1,364,326
Washington Mutual Bank 2.55%, 03/21/05 - 03/22/05		15,690,821		15,690,821
Wells Fargo Bank N.A. 2.52% - 2.53%, 03/17/05 - 03/22/05		20,977,945		20,977,896
				118,210,047
U.S. GOVERNMENT AGENCY NOTES5 – 0.20%
Federal Home Loan Mortgage Corp. 1.63% - 2.06%, 04/15/05 - 05/31/05		4,088,243		4,080,332

36 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

February 28, 2005

Security	Principal		Value
Federal National Mortgage Association 2.33%, 07/22/05	$	5,116,572	$	5,069,318
				9,149,650
TOTAL SHORT-TERM INVESTMENTS (Cost: $712,657,185)				712,657,185
TOTAL INVESTMENTS IN SECURITIES – 115.37% (Cost: $4,263,860,151)				5,282,656,724
Other Assets, Less Liabilities – (15.37%)				(703,740,586	)
NET ASSETS – 100.00%			$	4,578,916,138

ADR – American Depositary Receipts

GDR – Global Depositary Receipts

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

² Non-income earning security.

³ All or a portion of this security is exempt from registration pursuant to Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

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

⁵ All or a portion of these securities represent an investment of securities lending collateral. See Note 5.

⁶ Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 2.95% to 7.85% and maturity dates ranging from 8/1/08 to 1/1/44.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 37

Schedule of Investments (Unaudited)

iSHARES^® MSCI HONG KONG INDEX FUND

February 28, 2005

Security	Shares	Value
COMMON STOCKS – 99.93%
AIRLINES – 1.03%
Cathay Pacific Airways Ltd.	3,590,000	$	6,605,399
			6,605,399
APPAREL – 0.81%
Yue Yuen Industrial Holdings Ltd.1	1,795,000		5,178,449
			5,178,449
BANKS – 14.13%
Bank of East Asia Ltd.	5,744,100		17,455,130
BOC Hong Kong Holdings Ltd.	15,796,000		30,076,431
Hang Seng Bank Ltd.1	3,159,200		43,342,467
			90,874,028
CHEMICALS – 0.84%
Kingboard Chemical Holdings Co. Ltd.	1,795,000		5,408,602
			5,408,602
DISTRIBUTION & WHOLESALE – 6.31%
Esprit Holdings Ltd.	3,949,000		28,228,301
Li & Fung Ltd.	7,180,000		12,336,216
			40,564,517
DIVERSIFIED FINANCIAL SERVICES – 1.71%
Hong Kong Exchanges & Clearing Ltd.1	4,308,000		10,992,121
			10,992,121
ELECTRIC – 11.04%
CLP Holdings Ltd.	7,539,200		43,113,456
Hongkong Electric Holdings Ltd.	6,103,000		27,857,753
			70,971,209
ELECTRICAL COMPONENTS & EQUIPMENT – 0.90%
Johnson Electric Holdings Ltd.	6,103,000		5,790,657
			5,790,657
ENGINEERING & CONSTRUCTION – 2.50%
Cheung Kong Infrastructure Holdings Ltd.1	2,154,000		6,504,132
New World Development Co. Ltd.	9,334,800		9,575,197
			16,079,329
GAS – 4.98%
Hong Kong & China Gas Co. Ltd.	15,078,663		31,997,315
			31,997,315
HAND & MACHINE TOOLS – 1.30%
Techtronic Industries Co. Ltd.	3,590,000		8,377,580
			8,377,580
HOLDING COMPANIES – DIVERSIFIED – 20.69%
Hutchison Whampoa Ltd.1	9,334,800		84,381,426
Swire Pacific Ltd. Class A	3,859,000		31,543,341
Wharf Holdings Ltd. (The)	5,026,000		17,109,595
			133,034,362
LODGING – 1.01%
Shangri-La Asia Ltd.1	4,308,000		6,517,941
			6,517,941
MEDIA – 1.21%
SCMP Group Ltd.	2,872,000		1,307,271
Television Broadcasts Ltd.1	1,436,000		6,499,529
			7,806,800
REAL ESTATE – 25.38%
Cheung Kong Holdings Ltd.	6,462,000		61,727,111
Hang Lung Properties Ltd.	7,898,000		12,253,361
Henderson Land Development Co. Ltd.	2,872,000		13,477,776
Hopewell Holdings Ltd.	2,872,000		7,217,607
Hysan Development Co. Ltd.	2,872,000		6,020,810
Kerry Properties Ltd.	2,154,000		5,137,021
Sino Land Co. Ltd.1	4,308,000		3,838,957
Sun Hung Kai Properties Ltd.	5,744,000		53,579,685
			163,252,328
RETAIL – 0.59%
Giordano International Ltd.	5,744,000		3,792,926
			3,792,926
SEMICONDUCTORS – 0.49%
ASM Pacific Technology Ltd.1	718,000		3,176,115
			3,176,115
TELECOMMUNICATIONS – 2.43%
Hutchinson Telecommunications International Ltd.2	5,744,000		6,260,169
PCCW Ltd.1	14,360,576		8,562,046
SmarTone Telecommunications Holdings Ltd.	720,000		830,860
			15,653,075
TEXTILES – 0.20%
Texwinca Holdings Ltd.	1,436,000		1,307,271
			1,307,271

38 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI HONG KONG INDEX FUND

February 28, 2005

Security	Shares or Principal		Value
TRANSPORTATION – 2.38%
MTR Corp. Ltd.		5,744,083	$	9,132,614
Orient Overseas International Ltd.		1,436,000		6,168,108
				15,300,722
TOTAL COMMON STOCKS (Cost: $557,547,122)				642,680,746
SHORT-TERM INVESTMENTS – 16.88%
COMMERCIAL PAPER3 – 3.96%
Amstel Funding Corp. 2.95%, 08/19/05	$	217,218		214,174
Amsterdam Funding Corp. 2.53%, 03/01/05 - 03/10/05		574,845		574,615
ANZ National Bank Ltd. 2.94%, 08/15/05		261,293		257,736
Barton Capital Corp. 2.53% - 2.54%, 03/07/05 - 03/17/05		1,156,259		1,155,325
Blue Ridge Asset Funding Corp. 2.53%, 03/23/05		574,845		573,956
Bryant Park Funding LLC 2.50%, 03/16/05		52,259		52,204
Chariot Funding LLC 2.54%, 03/21/05		522,586		521,849
Chesham Finance LLC 2.55%, 03/04/05		209,035		208,990
Corporate Asset Funding 2.55%, 03/24/05		261,293		260,867
CRC Funding LLC 2.53%, 03/11/05		130,647		130,555
Delaware Funding Corp. 2.53% - 2.54%, 03/09/05 - 03/22/05		969,095		968,020
DEPFA Bank PLC 2.28%, 05/03/05		261,293		260,253
Edison Asset Securitization 2.26% - 2.53%, 03/07/05 - 05/04/05		1,698,406		1,695,340
Fairway Finance LLC 2.53% - 2.54%, 03/09/05 - 03/22/05		498,192		497,652
Falcon Asset Securitization Corp. 2.53% - 2.54%, 03/14/05 - 03/18/05		2,014,894		2,012,542
Ford Credit Auto Receivables 2.28% - 2.55%, 03/15/05 - 04/27/05		1,213,445		1,211,216
Ford Credit Floorplan Motown 2.54% - 2.56%, 03/04/05 - 03/18/05		653,233		652,965
Fortis Funding LLC 2.35%, 05/09/05		731,621		728,326
General Electric Capital Corp. 2.53% - 2.74%, 03/08/05 - 07/07/05		1,149,690		1,146,708
Giro Funding US Corp. 2.54%, 03/14/05 - 03/18/05		629,983		629,312
Grampian Funding LLC 2.49% - 3.00%, 03/23/05 - 08/22/05		1,541,630		1,522,668
Jupiter Securitization Corp. 2.53%, 03/03/05 - 03/22/05		2,384,196		2,382,033
Kitty Hawk Funding Corp. 2.54%, 03/15/05		783,880		783,107
Liberty Street Funding Corp. 2.53% - 2.54%, 03/14/05 - 03/16/05		287,422		287,141
Moat Funding LLC 2.50%, 03/23/05		104,517		104,358
Nordea North America Inc. 2.74%, 07/11/05		261,293		258,668
Park Avenue Receivables Corp. 2.53%, 03/10/05 - 03/11/05		816,290		815,736
Park Granada LLC 2.55% - 2.58%, 03/18/05 - 03/21/05		365,810		365,345
Preferred Receivables Funding Corp. 2.53% - 2.54%, 03/14/05 - 03/21/05		1,110,386		1,108,851
Ranger Funding Co. LLC 2.54%, 03/04/05		155,401		155,369
Santander Central Hispano 2.75%, 07/08/05		653,233		646,808

SCHEDULES OF INVESTMENTS 39

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI HONG KONG INDEX FUND

February 28, 2005

Security	Principal		Value
Scaldis Capital LLC 2.75%, 07/08/05	$	130,793	$	129,504
Ticonderoga Master Funding Ltd. 2.54% - 2.57%, 03/21/05 - 03/24/05		886,244		884,946
Tulip Funding Corp. 2.54% - 2.55%, 03/01/05		872,332		872,332
UBS Finance (Delaware) 2.62%, 03/01/05		1,045,173		1,045,173
Windmill Funding Corp. 2.55%, 03/08/05		182,905		182,815
Yorktown Capital LLC 2.53%, 03/17/05		182,905		182,700
				25,480,159
FLOATING RATE NOTES3 – 6.21%
Allstate Life Global Funding II 2.58%, 01/10/064		240,390		240,398
American Express Centurion Bank 2.58%, 01/24/06		783,880		783,880
American Express Credit Corp. 2.68%, 10/26/05		1,045,173		1,045,517
Bank of Nova Scotia 2.52% - 2.57%, 09/26/05 - 01/03/06		339,681		339,593
Beta Finance Inc. 2.53% - 2.79%, 03/15/05 - 10/27/05		1,959,699		1,959,855
Canadian Imperial Bank of Commerce 2.52% - 2.61%, 09/13/05 - 12/14/05		1,776,794		1,776,445
CC USA Inc. 2.53% - 2.66%, 05/04/05 - 07/29/05		1,045,173		1,045,091
Commodore CDO Ltd. 2.55%, 12/12/05		130,647		130,647
Den Danske Bank NY 2.52% - 2.60%, 08/12/05 - 10/17/05		1,567,759		1,567,514
DEPFA Bank PLC 2.47%, 12/15/05		522,586		522,586
Dorada Finance Inc. 2.66%, 07/29/05		433,747		433,693
Fairway Finance LLC 2.55%, 03/14/05 - 06/20/05		783,879		783,871
Fifth Third Bancorp 2.57%, 02/23/064		1,045,173		1,045,173
Five Finance Inc. 2.62% - 2.64%, 04/29/05 - 02/27/06		679,362		679,389
General Electric Capital Corp. 2.69%, 03/09/06		235,164		235,490
General Electric Commercial Equipment Financing LLC 2.56%, 11/20/05		223,185		223,185
Hartford Life Global Funding Trust 2.58%, 02/15/06		522,586		522,586
HBOS Treasury Services PLC 2.55% - 2.56%, 01/10/06 - 01/24/06		1,567,759		1,567,758
K2 USA LLC 2.55% - 2.64%, 06/10/05 - 02/15/06		2,351,638		2,351,667
Leafs LLC 2.60%, 01/20/06 - 02/21/064		548,716		548,716
Links Finance LLC 2.54% - 2.77%, 04/15/05 - 02/06/06		2,142,604		2,143,152
Lothian Mortgages PLC 2.61%, 01/24/06		1,045,173		1,045,173
MetLife Funding Inc. 2.58%, 03/06/06		783,880		783,880
National City Bank (Ohio) 2.52% - 2.58%, 06/10/05 - 08/09/05		1,306,466		1,306,370
Nationwide Building Society 2.58% - 2.64%, 01/06/06 - 01/27/064		1,933,569		1,933,976
Norddeutsche Landesbank 2.63%, 07/27/05		522,586		522,512
Northern Rock PLC 2.60% - 2.62%, 10/25/05 - 02/03/064		1,567,759		1,567,759

40 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI HONG KONG INDEX FUND

February 28, 2005

Security	Shares or Principal		Value
Permanent Financing PLC 2.54% - 2.57%, 03/10/05 - 09/12/05	$	1,410,983	$	1,410,983
Sedna Finance Inc. 2.56%, 01/10/06 - 01/17/06		287,422		287,364
Sigma Finance Inc. 2.54% - 2.79%, 08/17/05 - 01/09/06		2,665,190		2,665,319
Tango Finance Corp. 2.55% - 2.74%, 04/07/05 - 09/15/05		1,607,998		1,607,931
Wachovia Asset Securitization Inc. 2.64%, 03/25/05		1,567,759		1,567,760
Wells Fargo & Co. 2.56%, 03/15/064		261,293		261,331
WhistleJacket Capital LLC 2.45% - 2.57%, 06/15/05 - 01/17/06		1,829,052		1,828,894
White Pine Finance LLC 2.54% - 2.80%, 03/29/05 - 01/13/06		2,858,547		2,858,334
Winston Funding Ltd. 2.75%, 04/25/05		373,127		373,127
				39,966,919
MEDIUM-TERM NOTES3 – 0.08%
CC USA Inc. 1.29%, 04/15/054		522,586		522,580
				522,580
MONEY MARKET FUNDS3 – 0.42%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares5		2,398,809		2,398,809
BlackRock Temp Cash Money Market Fund		97,458		97,458
Short-Term Investment Co. – Prime Money Market Portfolio, Institutional Shares		197,185		197,185
				2,693,452
REPURCHASE AGREEMENTS3 – 3.17%
Bank of America N.A. Repurchase Agreements, dated 2/28/05, due 3/1/05, with a total maturity value of $11,759,052 and effective yields of 2.62% - 2.63%.6		11,758,192		11,758,192
Merrill Lynch Government Securities Inc. Repurchase Agreement, dated 2/28/05, due 3/1/05, with a maturity value of $8,623,304 and an effective yield of 2.63%.6		8,622,674		8,622,674
				20,380,866
TIME DEPOSITS3 – 2.82%
Abbey National Treasury Services PLC 1.39%, 04/08/05		365,810		365,805
Banco Bilbao Vizcaya Argentaria SA 2.50% - 2.51%, 03/21/05 - 03/22/05		783,880		783,881
BNP Paribas (New York) 2.78% - 3.03%, 7/11/05 - 08/23/05		731,621		731,621
Credit Suisse First Boston 2.55%, 03/22/05		522,586		522,586
Deutsche Bank AG 2.51%, 03/01/05		870,282		870,282
First Tennessee Bank 2.53%, 03/14/05 - 03/21/05		1,306,466		1,306,466
HBOS Treasury Services PLC 1.24% - 2.50%, 03/22/05 - 04/01/05		857,042		857,038
Key Bank N.A. 2.51% - 2.55%, 03/01/05 - 03/18/05		3,135,518		3,135,518
Natexis Banques 2.50% - 2.98%, 03/22/05 - 08/18/05		914,526		914,526
Norddeutsche Landesbank 2.11%, 06/07/05		522,586		522,558

SCHEDULES OF INVESTMENTS 41

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI HONG KONG INDEX FUND

February 28, 2005

Security	Principal		Value
Royal Bank of Scotland 2.54%, 03/22/05	$	130,647	$	130,647
Societe Generale 2.53%, 03/22/05		52,259		52,259
Toronto-Dominion Bank 1.22% - 2.66%, 03/23/05 - 11/09/05		2,090,345		2,090,254
UBS AG 2.67%, 11/09/05		209,035		209,020
Washington Mutual Bank 2.55%, 03/21/05 - 03/22/05		2,403,898		2,403,898
Wells Fargo Bank N.A. 2.52% - 2.53%, 03/17/05 - 03/22/05		3,213,906		3,213,899
				18,110,258
U.S. GOVERNMENT AGENCY NOTES3 – 0.22%
Federal Home Loan Mortgage Corp. 1.63% - 2.06%, 04/15/05 - 05/31/05		626,335		625,123
Federal National Mortgage Association 2.33%, 07/22/05		783,880		776,640
				1,401,763
TOTAL SHORT-TERM INVESTMENTS (Cost: $108,555,997)				108,555,997
TOTAL INVESTMENTS IN SECURITIES – 116.81% (Cost: $666,103,119)				751,236,743
Other Assets, Less Liabilities – (16.81%)				(108,092,520	)
NET ASSETS – 100.00%			$	643,144,223

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

² Non-income earning security.

³ All or a portion of these securities represent an investment of securities lending collateral. See Note 5.

⁴ All or a portion of this security is exempt from registration pursuant to Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

⁵ The Fund’s investment adviser is an affiliate of the issuer. See Note 2.

⁶ Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 2.95% to 7.85% and maturity dates ranging from 8/1/08 to 1/1/44.

See notes to financial statements.

42 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI MALAYSIA INDEX FUND

February 28, 2005

Security	Shares	Value
COMMON STOCKS – 99.88%
AGRICULTURE – 8.28%
British American Tobacco (Malaysia) Bhd	842,800	$	10,146,868
Golden Hope Plantations Bhd	2,046,800		2,046,800
Highlands & Lowlands Bhd	1,083,600		1,026,568
IOI Corp. Bhd	4,394,600		10,292,616
Kuala Lumpur Kepong Bhd	1,806,000		3,065,447
			26,578,299
AIRLINES – 1.25%
Airasia Bhd	4,996,600		2,103,832
Malaysian Airline System Bhd	1,806,000		1,910,558
			4,014,390
AUTO MANUFACTURERS – 2.45%
DRB-Hicom Bhd	2,829,400		1,600,845
Oriental Holdings Bhd	1,144,200		1,294,753
Proton Holdings Bhd	1,745,800		3,836,166
Tan Chong Motor Holdings Bhd	2,408,000		1,140,632
			7,872,396
AUTO PARTS & EQUIPMENT – 0.59%
UMW Holdings Bhd	1,444,800		1,885,844
			1,885,844
BANKS – 25.34%
AMMB Holdings Bhd	6,742,400		5,677,810
CIMB Bhd	1,204,000		1,679,263
Commerce Asset Holdings Bhd	10,595,200		12,993,061
Hong Leong Bank Bhd	3,431,400		4,876,200
Malayan Banking Bhd	11,739,000		37,997,290
Public Bank Bhd	7,224,000		15,398,526
RHB Capital Bhd	4,575,200		2,696,960
			81,319,110
BEVERAGES – 0.43%
Guinness Anchor Bhd	963,200		1,394,105
			1,394,105
BUILDING MATERIALS – 2.25%
Jaya Tiasa Holdings Bhd	541,800		456,253
Malayan Cement Bhd	8,367,800		1,827,704
OYL Industries Bhd	481,633		4,594,525
WTK Holdings Bhd	240,800		354,863
			7,233,345
CHEMICALS – 0.49%
Malaysian Oxygen Bhd	481,600		1,558,863
			1,558,863
COMMERCIAL SERVICES – 2.00%
PLUS Expressways Bhd	8,969,800		6,420,488
			6,420,488
DIVERSIFIED FINANCIAL SERVICES – 1.10%
Hong Leong Credit Bhd	1,505,000		1,695,105
OSK Holdings Bhd	2,046,800		743,312
TA Enterprise Bhd	4,816,000		1,089,937
			3,528,354
ELECTRIC – 7.28%
Malakoff Bhd	3,852,800		7,452,126
Tenaga Nasional Bhd	5,719,000		15,652,000
TIME Engineering Bhd1	1,926,400		261,078
			23,365,204
ELECTRONICS – 0.25%
Hong Leong Industries Bhd	662,200		801,611
Hume Industries Bhd	667		874
			802,485
ENGINEERING & CONSTRUCTION – 6.39%
Gamuda Bhd	3,973,200		5,646,126
IJM Corp. Bhd	2,287,600		2,877,560
Malaysia Airports Holdings Bhd	1,986,600		826,007
Malaysian Resources Corp. Bhd1	3,551,800		696,340
MMC Corp. Bhd	1,986,600		1,076,946
Road Builder (Malaysia) Holdings Bhd	2,829,100		2,159,050
Transmile Group Bhd	722,400		1,767,979
YTL Corp. Bhd	3,913,088		5,457,728
			20,507,736
ENTERTAINMENT – 7.05%
Berjaya Sports Toto Bhd	3,732,400		4,007,419
Magnum Corp. Bhd	6,140,400		3,651,922
Resorts World Bhd	3,551,800		9,440,310
Tanjong PLC	1,444,800		5,513,053
			22,612,704
ENVIRONMENTAL CONTROL – 0.24%
Puncak Niaga Holding Bhd1	1,023,400		762,164
			762,164

SCHEDULES OF INVESTMENTS 43

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI MALAYSIA INDEX FUND

February 28, 2005

Security	Shares	Value
FOOD – 1.88%
Nestle (Malaysia) Bhd	481,600	$	2,940,295
PPB Group Bhd	1,685,633		3,082,934
			6,023,229
GAS – 1.65%
Petronas Gas Bhd	2,829,400		5,286,511
			5,286,511
HOLDING COMPANIES – DIVERSIFIED – 4.80%
Mulpha International Bhd1	6,020,000		990,132
Multi-Purpose Holdings Bhd1	4,093,600		1,012,627
Sime Darby Bhd	8,488,200		13,402,421
			15,405,180
INSURANCE – 0.31%
MAA Holdings Bhd	722,400		1,007,558
			1,007,558
LODGING – 4.06%
Genting Bhd	2,528,400		13,041,221
			13,041,221
MEDIA – 2.86%
Astro All Asia Networks PLC1	4,153,800		6,066,734
New Straits Times Press Bhd1	842,800		811,749
Star Publications (Malaysia) Bhd	1,264,200		2,312,155
			9,190,638
OIL & GAS – 0.58%
Petronas Dagangan Bhd	1,806,000		1,844,021
			1,844,021
REAL ESTATE – 3.21%
Bandar Raya Developments Bhd	1,505,000		811,908
IGB Corp. Bhd	5,177,200		1,880,141
IOI Properties Bhd	481,750		988,855
KLCC Property Holdings Bhd	3,371,200		1,934,004
MK Land Holdings Bhd	2,167,200		1,134,928
SP Setia Bhd	3,010,000		3,548,632
			10,298,468
RETAIL – 0.34%
Courts Mammoth Bhd	903,000		406,350
Edaran Otomobil Nasional Bhd	541,800		672,973
			1,079,323
SEMICONDUCTORS – 1.05%
Malaysian Pacific Industries Bhd	602,000		2,281,263
Unisem (Malaysia) Bhd	1,784,700		1,075,517
			3,356,780
TELECOMMUNICATIONS – 9.06%
Maxis Communications Bhd	4,454,800		11,488,695
Telekom Malaysia Bhd	6,080,200		17,600,579
			29,089,274
TRANSPORTATION – 4.69%
Malaysia International Shipping Corp. Bhd	3,311,000		13,941,053
Malaysian Bulk Carriers Bhd	1,685,600		1,117,819
			15,058,872
TOTAL COMMON STOCKS (Cost: $257,879,678)			320,536,562
SHORT-TERM INVESTMENTS – 0.12%
MONEY MARKET FUNDS – 0.12%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares2	387,128		387,128
			387,128
TOTAL SHORT-TERM INVESTMENTS (Cost: $387,128)			387,128
TOTAL INVESTMENTS IN SECURITIES – 100.00% (Cost: $258,266,806)			320,923,690
Other Assets, Less Liabilities – 0.00%			(1,620	)
NET ASSETS – 100.00%		$	320,922,070

¹ Non-income earning security.

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

See notes to financial statements.

44 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI MEXICO INDEX FUND

February 28, 2005

Security	Shares	Value
COMMON STOCKS – 99.98%
BEVERAGES – 9.53%
Coca-Cola Femsa SA de CV ADR1,2	126,840	$	3,259,788
Fomento Economico Mexicano SA de CV Class UBD	2,299,500		13,827,993
Grupo Continental SA	947,415		1,716,865
Grupo Modelo SA de CV Series C	2,605,050		7,961,881
			26,766,527
BUILDING MATERIALS – 11.84%
Cemex SA de CV Series CPO	4,152,435		33,240,445
			33,240,445
DIVERSIFIED FINANCIAL SERVICES – 3.24%
Grupo Financiero Banorte SA de CV Series O	1,312,500		9,086,652
			9,086,652
ENGINEERING & CONSTRUCTION – 1.26%
Grupo Aeroportuario del Sureste SA de CV ADR	110,775		3,527,076
			3,527,076
ENTERTAINMENT – 1.68%
Corporaion Interamericana de Entretenimiento SA de CV Class B1	1,634,850		4,709,217
			4,709,217
FOOD – 1.61%
Grupo Bimbo SA Series A	1,563,975		4,526,211
			4,526,211
FOREST PRODUCTS & PAPER – 3.28%
Kimberly-Clark de Mexico SA de CV Class A	2,770,845		9,205,548
			9,205,548
HOLDING COMPANIES – DIVERSIFIED – 5.65%
Alfa SA de CV Class A	1,229,130		6,925,925
Grupo Carso SA de CV Series A1	1,651,860		8,919,232
			15,845,157
HOME BUILDERS – 1.26%
Corporacion GEO SA de CV Series B1	1,407,525		3,546,810
			3,546,810
HOUSEWARES – 0.52%
Vitro SA de CV Series A	1,462,860		1,462,629
			1,462,629
MEDIA – 6.11%
Grupo Televisa SA Series CPO	4,187,190		13,529,776
TV Azteca SA de CV Series CPO1	6,415,500		3,632,370
			17,162,146
METAL FABRICATE & HARDWARE – 0.00%
Hylsamex SA de CV Class B1	1		4
			4
MINING – 3.44%
Grupo Mexico SA de CV Series B1	1,281,083		7,438,118
Industrias Penoles SA de CV Series CP	408,555		2,226,623
			9,664,741
REAL ESTATE – 1.54%
Consorcio Ara SA de CV1	1,165,546		4,329,389
			4,329,389
RETAIL – 7.61%
Controladora Comercial Mexicana SA de CV	2,163,000		2,369,369
Grupo Sanborns SA Series B11	1,055,355		1,712,659
Organizacion Soriana SA de CV Series B	951,510		3,944,412
Wal-Mart de Mexico SA de CV Series V	3,628,800		13,344,942
			21,371,382
TELECOMMUNICATIONS – 41.41%
America Movil SA de CV Series L	21,882,000		63,919,294
America Telecom SA de CV Series A11	2,143,888		6,496,367
Carso Global Telecom SA de CV Class A11	3,207,015		5,811,617
Telefonos de Mexico SA de CV Series L	20,428,485		40,040,143
			116,267,421
TOTAL COMMON STOCKS (Cost: $231,847,875)			280,711,355

SCHEDULES OF INVESTMENTS 45

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI MEXICO INDEX FUND

February 28, 2005

Security	Principal		Value
SHORT-TERM INVESTMENTS – 0.91%
COMMERCIAL PAPER3 – 0.21%
Amstel Funding Corp. 2.95%, 08/19/05	$	4,929	$	4,860
Amsterdam Funding Corp. 2.53%, 03/01/05 - 03/10/05		13,045		13,040
ANZ National Bank Ltd. 2.94%, 08/15/05		5,929		5,849
Barton Capital Corp. 2.53% - 2.54%, 03/07/05 - 03/17/05		26,239		26,217
Blue Ridge Asset Funding Corp. 2.53%, 03/23/05		13,045		13,025
Bryant Park Funding LLC 2.50%, 03/16/05		1,186		1,185
Chariot Funding LLC 2.54%, 03/21/05		11,859		11,842
Chesham Finance LLC 2.55%, 03/04/05		4,744		4,743
Corporate Asset Funding 2.55%, 03/24/05		5,929		5,920
CRC Funding LLC 2.53%, 03/11/05		2,965		2,963
Delaware Funding Corp. 2.53% - 2.54%, 03/09/05 - 03/22/05		21,991		21,967
DEPFA Bank PLC 2.28%, 05/03/05		5,929		5,906
Edison Asset Securitization 2.26% - 2.53%, 03/07/05 - 05/04/05		38,541		38,473
Fairway Finance LLC 2.53% - 2.54%, 03/09/05 - 03/22/05		11,305		11,293
Falcon Asset Securitization Corp. 2.53% - 2.54%, 03/14/05 - 03/18/05		45,723		45,669
Ford Credit Auto Receivables 2.28% - 2.55%, 03/15/05 - 04/27/05		27,536		27,485
Ford Credit Floorplan Motown 2.54% - 2.56%, 03/04/05 - 03/18/05		14,824		14,817
Fortis Funding LLC 2.35%, 05/09/05		16,602		16,528
General Electric Capital Corp. 2.53% - 2.74%, 03/08/05 - 07/07/05		26,089		26,022
Giro Funding US Corp. 2.54%, 03/14/05 - 03/18/05		14,296		14,281
Grampian Funding LLC 2.49% - 3.00%, 03/23/05 - 08/22/05		34,984		34,553
Jupiter Securitization Corp. 2.53%, 03/03/05 - 03/22/05		54,104		54,054
Kitty Hawk Funding Corp. 2.54%, 03/15/05		17,788		17,771
Liberty Street Funding Corp. 2.53% - 2.54%, 03/14/05 - 03/16/05		6,522		6,517
Moat Funding LLC 2.50%, 03/23/05		2,372		2,368
Nordea North America Inc. 2.74%, 07/11/05		5,929		5,870
Park Avenue Receivables Corp. 2.53%, 03/10/05 - 03/11/05		18,524		18,511
Park Granada LLC 2.55% - 2.58%, 03/18/05 - 03/21/05		8,301		8,291
Preferred Receivables Funding Corp. 2.53% - 2.54%, 03/14/05 - 03/21/05		25,198		25,163
Ranger Funding Co. LLC 2.54%, 03/04/05		3,526		3,526
Santander Central Hispano 2.75%, 07/08/05		14,824		14,678
Scaldis Capital LLC 2.75%, 07/08/05		2,968		2,939
Ticonderoga Master Funding Ltd. 2.54% - 2.57%, 03/21/05 - 03/24/05		20,111		20,082

46 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI MEXICO INDEX FUND

February 28, 2005

Security	Principal		Value
Tulip Funding Corp. 2.54% - 2.55%, 03/01/05	$	19,796	$	19,796
UBS Finance (Delaware) 2.62%, 03/01/05		23,718		23,718
Windmill Funding Corp. 2.55%, 03/08/05		4,151		4,149
Yorktown Capital LLC 2.53%, 03/17/05		4,151		4,146
				578,217
FLOATING RATE NOTES3 – 0.32%
Allstate Life Global Funding II 2.58%, 01/10/064		5,455		5,455
American Express Centurion Bank 2.58%, 01/24/06		17,788		17,788
American Express Credit Corp. 2.68%, 10/26/05		23,718		23,726
Bank of Nova Scotia 2.52% - 2.57%, 09/26/05 - 01/03/06		7,708		7,707
Beta Finance Inc. 2.53% - 2.79%, 03/15/05 - 10/27/05		44,471		44,475
Canadian Imperial Bank of Commerce 2.52% - 2.61%, 09/13/05 - 12/14/05		40,320		40,312
CC USA Inc. 2.53% - 2.66%, 05/04/05 - 07/29/05		23,718		23,715
Commodore CDO Ltd. 2.55%, 12/12/05		2,965		2,965
Den Danske Bank NY 2.52% - 2.60%, 08/12/05 - 10/17/05		35,577		35,571
DEPFA Bank PLC 2.47%, 12/15/05		11,859		11,859
Dorada Finance Inc. 2.66%, 07/29/05		9,843		9,842
Fairway Finance LLC 2.55%, 03/14/05 - 06/20/05		17,788		17,788
Fifth Third Bancorp 2.57%, 02/23/064		23,718		23,718
Five Finance Inc. 2.62% - 2.64%, 04/29/05 - 02/27/06		15,417		15,417
General Electric Capital Corp. 2.69%, 03/09/06		5,336		5,344
General Electric Commercial Equipment Financing LLC 2.56%, 11/20/05		5,065		5,065
Hartford Life Global Funding Trust 2.58%, 02/15/06		11,859		11,859
HBOS Treasury Services PLC 2.55% - 2.56%, 01/10/06 - 01/24/06		35,577		35,577
K2 USA LLC 2.55% - 2.64%, 06/10/05 - 02/15/06		53,365		53,365
Leafs LLC 2.60%, 01/20/06 - 02/21/064		12,452		12,452
Links Finance LLC 2.54% - 2.77%, 04/15/05 - 02/06/06		48,621		48,635
Lothian Mortgages PLC 2.61%, 01/24/06		23,718		23,718
MetLife Funding Inc. 2.58%, 03/06/06		17,788		17,788
National City Bank (Ohio) 2.52% - 2.58%, 06/10/05 - 08/09/05		29,647		29,645
Nationwide Building Society 2.58% - 2.64%, 01/06/06 - 01/27/064		43,878		43,887
Norddeutsche Landesbank 2.63%, 07/27/05		11,859		11,857
Northern Rock PLC 2.60% - 2.62%, 10/25/05 - 02/03/064		35,577		35,577
Permanent Financing PLC 2.54% - 2.57%, 03/10/05 - 09/12/05		32,019		32,019

SCHEDULES OF INVESTMENTS 47

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI MEXICO INDEX FUND

February 28, 2005

Security	Shares or Principal		Value
Sedna Finance Inc. 2.56% - 2.56%, 01/10/06 - 01/17/06	$	6,522	$	6,521
Sigma Finance Inc. 2.54% - 2.79%, 08/17/05 - 01/09/06		60,480		60,485
Tango Finance Corp. 2.55% - 2.74%, 04/07/05 - 09/15/05		36,490		36,488
Wachovia Asset Securitization Inc. 2.64%, 03/25/05		35,577		35,576
Wells Fargo & Co. 2.56%, 03/15/064		5,929		5,930
WhistleJacket Capital LLC 2.45% - 2.57%, 06/15/05 - 01/17/06		41,506		41,502
White Pine Finance LLC 2.54% - 2.80%, 03/29/05 - 01/13/06		64,868		64,864
Winston Funding Ltd. 2.75%, 04/25/05		8,467		8,467
				906,959
MEDIUM-TERM NOTES3 – 0.00%
CC USA Inc. 1.29%, 04/15/054		11,859		11,859
				11,859
MONEY MARKET FUNDS3 – 0.06%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares5		157,816		157,816
BlackRock Temp Cash Money Market Fund		2,212		2,212
Short-Term Investment Co. – Prime Money Market Portfolio, Institutional Shares		4,475		4,475
				164,503
REPURCHASE AGREEMENTS3 – 0.16%
Bank of America N.A. Repurchase Agreements, dated 2/28/05, due 3/1/05, with a total maturity value of $266,844 and effective yields of 2.62% - 2.63%.6		266,825		266,825
Merrill Lynch Government Securities Inc. Repurchase Agreement, dated 2/28/05, due 3/1/05, with a maturity value of $195,686 and an effective yield of 2.63%.6		195,672		195,672
				462,497
TIME DEPOSITS3 – 0.15%
Abbey National Treasury Services PLC 1.39%, 04/08/05		8,301		8,301
Banco Bilbao Vizcaya Argentaria SA 2.50% - 2.51%, 03/21/05 - 03/22/05		17,788		17,788
BNP Paribas (New York) 2.78% - 3.03%, 07/11/05 - 08/23/05		16,602		16,603
Credit Suisse First Boston 2.55%, 03/22/05		11,859		11,859
Deutsche Bank AG 2.51%, 03/01/05		19,749		19,749
First Tennessee Bank 2.53%, 03/14/05 - 03/21/05		29,647		29,647
HBOS Treasury Services PLC 1.24% - 2.50%, 03/22/05 - 04/01/05		19,449		19,449
Key Bank N.A. 2.51% - 2.55%, 03/01/05 - 03/18/05		71,153		71,153
Natexis Banques 2.50% - 2.98%, 03/22/05 - 08/18/05		20,753		20,753
Norddeutsche Landesbank 2.11%, 06/07/05		11,859		11,858

48 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI MEXICO INDEX FUND

February 28, 2005

Security	Principal		Value
Royal Bank of Scotland 2.54%, 03/22/05	$	2,965	$	2,965
Societe Generale 2.53%, 03/22/05		1,186		1,186
Toronto-Dominion Bank 1.22% - 2.66%, 03/23/05 - 11/09/05		47,435		47,433
UBS AG 2.67%, 11/09/05		4,744		4,743
Washington Mutual Bank 2.55%, 03/21/05 - 03/22/05		54,550		54,550
Wells Fargo Bank N.A. 2.52% - 2.53%, 03/17/05 - 03/22/05		72,932		72,933
				410,970
U.S. GOVERNMENT AGENCY NOTES3 – 0.01%
Federal Home Loan Mortgage Corp. 1.63% - 2.06%, 04/15/05 - 05/31/05		14,213		14,186
Federal National Mortgage Association 2.33%, 07/22/05		17,788		17,624
				31,810
TOTAL SHORT-TERM INVESTMENTS (Cost: $2,566,815)				2,566,815
TOTAL INVESTMENTS IN SECURITIES – 100.89% (Cost: $234,414,690)				283,278,170
Other Assets, Less Liabilities – (0.89%)				(2,507,936	)
NET ASSETS – 100.00%			$	280,770,234

ADR – American Depositary Receipts

¹ Non-income earning security.

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

³ All or a portion of these securities represent an investment of securities lending collateral. See Note 5.

⁴ All or a portion of this security is exempt from registration pursuant to Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

⁵ The Fund’s investment adviser is an affiliate of the issuer. See Note 2.

⁶ Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 2.95% to 7.85% and maturity dates ranging from 8/1/08 to 1/1/44.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 49

Schedule of Investments (Unaudited)

iSHARES^® MSCI PACIFIC EX-JAPAN INDEX FUND

February 28, 2005

Security	Shares	Value
COMMON STOCKS – 99.32%
AUSTRALIA – 65.70%
Alumina Ltd.	1,867,068	$	8,937,497
Amcor Ltd.	1,410,318		8,038,591
AMP Ltd.	2,979,018		17,311,020
Ansell Ltd.	233,478		1,873,853
Aristocrat Leisure Ltd.1	498,456		4,261,681
Australia & New Zealand Banking Group Ltd.	2,916,018		49,469,007
Australian Gas Light Co. Ltd.	729,918		8,257,097
Australian Stock Exchange Ltd.1	163,674		2,690,904
Australian Wealth Management Ltd. Rights1,2	174,288		42,891
AXA Asia Pacific Holdings Ltd.	1,116,486		3,784,597
BHP Billiton Ltd.	5,719,140		86,898,263
BHP Steel Ltd.1	1,182,510		9,096,348
Boral Ltd.	934,416		4,747,431
Brambles Industries Ltd.1	1,555,974		9,807,567
Centro Properties Group	1,228,626		4,944,998
Coca-Cola Amatil Ltd.	825,678		5,361,699
Cochlear Ltd.1	89,712		2,072,440
Coles Myer Ltd.	1,857,114		14,079,278
Commonwealth Bank of Australia	2,029,860		58,381,180
Commonwealth Property Office Fund1	2,047,122		1,982,631
Computershare Ltd.	628,488		2,873,809
CSL Ltd.	317,016		8,065,804
CSR Ltd.	1,498,896		2,867,656
DB RREEF Trust	3,907,260		3,939,258
Foster’s Group Ltd.	3,217,788		13,308,638
Futuris Corp. Ltd.	821,520		1,343,457
Gandel Retail Trust	2,327,850		2,901,303
General Property Trust	3,217,032		9,347,058
Harvey Norman Holdings Ltd.1	859,194		1,889,337
Iluka Resources Ltd.	382,158		1,723,176
ING Industrial Fund	1,118,880		1,829,739
Insurance Australia Group Ltd.	2,553,768		12,974,776
Investa Property Group1	2,301,768		3,727,607
James Hardie Industries NV	737,478		3,530,245
John Fairfax Holdings Ltd.	1,463,490		4,925,996
Leighton Holdings Ltd.1	214,200		1,700,427
Lend Lease Corp Ltd.	576,450		5,674,424
Lion Nathan Ltd.	487,746		2,919,467
Macquarie Bank Ltd.	352,926		13,784,379
Macquarie Goodman Group2	1,670,042		5,196,990
Macquarie Infrastructure Group	3,113,712		8,997,426
Mayne Group Ltd.	1,032,192		3,294,011
Mirvac Group	1,271,214		4,561,373
National Australia Bank Ltd.1	2,473,128		56,542,827
Newcrest Mining Ltd.	528,696		7,239,917
OneSteel Ltd.	919,548		2,014,754
Orica Ltd.	434,826		6,713,880
Origin Energy Ltd.1	1,061,844		5,833,178
Origin Energy Ltd. Rights2	180,012		175,770
Pacific Brands Ltd.	790,524		1,631,649
PaperlinX Ltd.1	710,514		2,543,827
Patrick Corp. Ltd.1	896,616		4,363,203
Perpetual Trustees Australia Ltd.	61,236		3,028,540
Publishing & Broadcasting Ltd.	210,798		2,592,127
Qantas Airways Ltd.	1,447,866		4,172,280
QBE Insurance Group Ltd.1	1,182,888		14,376,636
Rinker Group Ltd.	1,510,992		13,674,311
Rio Tinto Ltd.1	500,094		18,770,142
Santos Ltd.	943,362		6,665,102
Sonic Healthcare Ltd.	389,466		3,744,141
Southcorp Ltd.1	1,012,158		3,503,267
Stockland Trust Group	2,014,740		9,212,552
Suncorp-Metway Ltd.	863,856		12,947,377
TABCORP Holdings Ltd.	819,252		11,264,291
Telstra Corp. Ltd.1	3,384,612		14,132,958
Toll Holdings Ltd.	388,584		4,007,122
Transurban Group1	859,194		4,829,064
Wesfarmers Ltd.	601,020		18,655,381
Westfield Group1	2,292,948		30,671,327
Westpac Banking Corp. Ltd.	2,848,734		43,216,645
WMC Resources Ltd.	1,861,146		11,214,003
Woodside Petroleum Ltd.1	745,038		12,881,746
Woolworths Ltd.1	1,666,098		20,580,152
			774,613,498
HONG KONG – 20.49%
ASM Pacific Technology Ltd.1	252,000		1,114,737
Bank of East Asia Ltd.	2,142,000		6,509,094

50 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI PACIFIC EX-JAPAN INDEX FUND

February 28, 2005

Security	Shares	Value
BOC Hong Kong Holdings Ltd.1	5,922,000	$	11,275,806
Cathay Pacific Airways Ltd.	1,638,000		3,013,828
Cheung Kong Holdings Ltd.	2,394,000		22,868,261
Cheung Kong Infrastructure Holdings Ltd.1	756,000		2,282,787
CLP Holdings Ltd.	2,898,000		16,572,421
Esprit Holdings Ltd.	1,449,000		10,357,763
Giordano International Ltd.	2,268,000		1,497,625
Hang Lung Properties Ltd.	2,898,736		4,497,247
Hang Seng Bank Ltd.	1,222,200		16,767,904
Henderson Land Development Co. Ltd.	1,134,000		5,321,657
Hong Kong & China Gas Co. Ltd.	5,796,836		12,301,037
Hong Kong Exchanges & Clearing Ltd.1	1,764,000		4,500,952
Hongkong Electric Holdings Ltd.	2,205,000		10,064,942
Hopewell Holdings Ltd.	1,008,000		2,533,199
Hutchinson Telecommunications International Ltd.2	2,142,000		2,334,485
Hutchison Whampoa Ltd.	3,402,000		30,752,197
Hysan Development Co. Ltd.	1,008,000		2,113,154
Johnson Electric Holdings Ltd.	2,394,000		2,271,478
Kerry Properties Ltd.	756,000		1,802,966
Kingboard Chemical Holdings Co. Ltd.	756,000		2,277,941
Li & Fung Ltd.	2,520,000		4,329,702
MTR Corp. Ltd.	2,142,000		3,405,602
New World Development Co. Ltd.	3,654,941		3,749,066
Orient Overseas International Ltd.1	252,000		1,082,426
PCCW Ltd.	5,533,845		3,299,383
SCMP Group Ltd.	1,512,000		688,229
Shangri-La Asia Ltd.1	1,764,000		2,668,906
Sino Land Co. Ltd.1	1,764,000		1,571,941
SmarTone Telecommunications Holdings Ltd.	441,000		508,902
Sun Hung Kai Properties Ltd.	2,142,000		19,980,447
Swire Pacific Ltd. Class A	1,512,000		12,359,039
Techtronic Industries Co. Ltd.1	1,386,000		3,234,353
Television Broadcasts Ltd.	378,000		1,710,879
Texwinca Holdings Ltd.	1,008,000		917,638
Wharf Holdings Ltd. (The)	2,016,000		6,862,902
Yue Yuen Industrial Holdings Ltd.1	756,000		2,181,007
			241,581,903
NEW ZEALAND – 2.90%
Auckland International Airport Ltd.	390,989		2,451,939
Carter Holt Harvey Ltd.1	1,008,504		1,691,423
Contact Energy Ltd.1	453,222		2,346,475
Fisher & Paykel Appliances Holdings Ltd.1	383,691		900,915
Fisher & Paykel Healthcare Corp. Ltd.1	713,916		1,598,204
Fletcher Building Ltd.1	694,638		3,581,167
Independent Newspapers Ltd.	163,044		772,796
NGC Holdings Ltd.	259,434		612,941
Sky City Entertainment Group Ltd.1	651,924		2,438,715
Sky Network Television Ltd.2	149,688		758,610
Telecom Corp. of New Zealand Ltd.1	3,130,218		14,608,352
Tenon Ltd.2	70,453		238,891
Tower Ltd.2	419,203		599,138
Warehouse Group Ltd. (The)	226,044		692,291
Waste Management NZ Ltd.	163,926		811,642
			34,103,499
SINGAPORE – 10.23%
Allgreen Properties Ltd.	756,000		516,581
Ascendas Real Estate Investment Trust1	1,357,000		1,654,012
Capitaland Ltd.1	1,651,000		2,520,533
CapitaMall Trust Management Ltd.	1,134,000		1,410,126
Chartered Semiconductor Manufacturing Ltd.1,2	1,638,000		1,109,175
City Developments Ltd.	756,000		3,141,371
ComfortDelGro Corp. Ltd.	2,772,000		2,849,728
Creative Technology Ltd.1	88,200		1,037,040
Datacraft Asia Ltd.2	378,000		396,900
DBS Group Holdings Ltd.	1,764,000		16,179,999
Fraser & Neave Ltd.	252,830		2,459,118
Haw Par Corp. Ltd.	126,397		400,717
Jardine Cycle & Carriage Ltd.	126,000		907,507
Keppel Corp. Ltd.	882,000		5,130,906
Keppel Land Ltd.	630,000		969,559
Neptune Orient Lines Ltd.1	756,000		1,675,398
Oversea-Chinese Banking Corp. Ltd.	1,638,000		13,713,441
Overseas Union Enterprise Ltd.	126,000		585,614

SCHEDULES OF INVESTMENTS 51

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI PACIFIC EX-JAPAN INDEX FUND

February 28, 2005

Security	Shares or Principal		Value
Parkway Holdings Ltd.		882,000	$	912,161
SembCorp Industries Ltd.		1,512,000		1,768,475
SembCorp Logistics Ltd.		484,000		488,633
SembCorp Marine Ltd.		882,000		912,161
Singapore Airlines Ltd.1		882,000		6,515,436
Singapore Exchange Ltd.		1,260,000		1,481,486
Singapore Land Ltd.1		252,000		884,238
Singapore Post Ltd.		2,016,000		1,110,727
Singapore Press Holdings Ltd.		2,520,517		7,075,353
Singapore Technologies Engineering Ltd.		2,016,000		2,928,844
Singapore Telecommunications Ltd.		10,584,871		17,071,847
SMRT Corp. Ltd.1		1,008,000		564,671
STATS ChipPAC Ltd.1,2		1,512,000		930,777
Suntec		1,260,000		1,000,585
United Overseas Bank Ltd.		1,890,000		15,823,202
United Overseas Land Ltd.		630,000		837,699
Venture Corp. Ltd.		363,000		3,217,828
Wing Tai Holdings Ltd.		756,333		423,690
				120,605,538
TOTAL COMMON STOCKS (Cost: $918,049,638)				1,170,904,438
SHORT-TERM INVESTMENTS – 12.19%
COMMERCIAL PAPER3 – 2.85%
Amstel Funding Corp. 2.95%, 08/19/05	$	286,584		282,568
Amsterdam Funding Corp. 2.53%, 03/01/05 - 03/10/05		758,414		758,109
ANZ National Bank Ltd. 2.94%, 08/15/05		344,733		340,040
Barton Capital Corp. 2.53% - 2.54%, 03/07/05 - 03/17/05		1,525,494		1,524,262
Blue Ridge Asset Funding Corp. 2.53%, 03/23/05		758,414		757,241
Bryant Park Funding LLC 2.50%, 03/16/05		68,947		68,875
Chariot Funding LLC 2.54%, 03/21/05		689,467		688,494
Chesham Finance LLC 2.55%, 03/04/05		275,787		275,728
Corporate Asset Funding 2.55%, 03/24/05		344,733		344,172
CRC Funding LLC 2.53%, 03/11/05		172,367		172,246
Delaware Funding Corp. 2.53% - 2.54%, 03/09/05 - 03/22/05		1,278,561		1,277,143
DEPFA Bank PLC 2.28%, 05/03/05		344,733		343,361
Edison Asset Securitization 2.26% - 2.53%, 03/07/05 - 05/04/05		2,240,768		2,236,723
Fairway Finance LLC 2.53% - 2.54%, 03/09/05 - 03/22/05		657,283		656,570
Falcon Asset Securitization Corp. 2.53% - 2.54%, 03/14/05 - 03/18/05		2,658,323		2,655,220
Ford Credit Auto Receivables 2.28% - 2.55%, 03/15/05 - 04/27/05		1,600,942		1,598,001
Ford Credit Floorplan Motown 2.54% - 2.56%, 03/04/05 - 03/18/05		861,834		861,479
Fortis Funding LLC 2.35%, 05/09/05		965,254		960,907
General Electric Capital Corp. 2.53% - 2.74%, 03/08/05 - 07/07/05		1,516,827		1,512,892
Giro Funding US Corp. 2.54%, 03/14/05 - 03/18/05		831,159		830,273
Grampian Funding LLC 2.49% - 3.00%, 03/23/05 - 08/22/05		2,033,928		2,008,910
Jupiter Securitization Corp. 2.53%, 03/03/05 - 03/22/05		3,145,555		3,142,702
Kitty Hawk Funding Corp. 2.54%, 03/15/05		1,034,200		1,033,181

52 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI PACIFIC EX-JAPAN INDEX FUND

February 28, 2005

Security	Principal		Value
Liberty Street Funding Corp. 2.53% - 2.54%, 03/14/05 - 03/16/05	$	379,207	$	378,835
Moat Funding LLC 2.50%, 03/23/05		137,893		137,683
Nordea North America Inc. 2.74%, 07/11/05		344,733		341,270
Park Avenue Receivables Corp. 2.53%, 03/10/05 - 03/11/05		1,076,961		1,076,231
Park Granada LLC 2.55% - 2.58%, 03/18/05 - 03/21/05		482,627		482,011
Preferred Receivables Funding Corp. 2.53% - 2.54%, 03/14/05 - 03/21/05		1,464,973		1,462,947
Ranger Funding Co. LLC 2.54%, 03/04/05		205,027		204,983
Santander Central Hispano 2.75%, 07/08/05		861,834		853,357
Scaldis Capital LLC 2.75%, 07/08/05		172,560		170,859
Ticonderoga Master Funding Ltd. 2.54% - 2.57%, 03/21/05 - 03/24/05		1,169,253		1,167,541
Tulip Funding Corp. 2.54% - 2.55%, 03/01/05		1,150,900		1,150,900
UBS Finance (Delaware) 2.62%, 03/01/05		1,378,934		1,378,934
Windmill Funding Corp. 2.55%, 03/08/05		241,313		241,194
Yorktown Capital LLC 2.53%, 03/17/05		241,313		241,042
				33,616,884
FLOATING RATE NOTES3 – 4.47%
Allstate Life Global Funding II 2.58%, 01/10/064		317,155		317,165
American Express Centurion Bank 2.58%, 01/24/06		1,034,200		1,034,200
American Express Credit Corp. 2.68%, 10/26/05		1,378,934		1,379,388
Bank of Nova Scotia 2.52% - 2.57%, 09/26/05 - 01/03/06		448,154		448,038
Beta Finance Inc. 2.53% - 2.79%, 03/15/05 - 10/27/05		2,585,501		2,585,706
Canadian Imperial Bank of Commerce 2.52% - 2.61%, 09/13/05 - 12/14/05		2,344,188		2,343,728
CC USA Inc. 2.53% - 2.66%, 05/04/05 - 07/29/05		1,378,934		1,378,825
Commodore CDO Ltd. 2.55%, 12/12/05		172,367		172,367
Den Danske Bank NY 2.52% - 2.60%, 08/12/05 - 10/17/05		2,068,401		2,068,078
DEPFA Bank PLC 2.47%, 12/15/05		689,467		689,467
Dorada Finance Inc. 2.66%, 07/29/05		572,258		572,187
Fairway Finance LLC 2.55%, 03/14/05 - 06/20/05		1,034,200		1,034,191
Fifth Third Bancorp 2.57%, 02/23/064		1,378,934		1,378,934
Five Finance Inc. 2.62% - 2.64%, 04/29/05 - 02/27/06		896,307		896,344
General Electric Capital Corp. 2.69%, 03/09/06		310,260		310,691
General Electric Commercial Equipment Financing LLC 2.56%, 11/20/05		294,457		294,457
Hartford Life Global Funding Trust 2.58%, 02/15/06		689,467		689,467
HBOS Treasury Services PLC 2.55% - 2.56%, 01/10/06 - 01/24/06		2,068,401		2,068,401

SCHEDULES OF INVESTMENTS 53

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI PACIFIC EX-JAPAN INDEX FUND

February 28, 2005

Security	Principal		Value
K2 USA LLC 2.55% - 2.64%, 06/10/05 - 02/15/06	$	3,102,601	$	3,102,638
Leafs LLC 2.60%, 01/20/06 - 02/21/064		723,940		723,940
Links Finance LLC 2.54% - 2.77%, 04/15/05 - 02/06/06		2,826,815		2,827,536
Lothian Mortgages PLC 2.61%, 01/24/06		1,378,934		1,378,934
MetLife Funding Inc. 2.58%, 03/06/06		1,034,200		1,034,200
National City Bank (Ohio) 2.52% - 2.58%, 06/10/05 - 08/09/05		1,723,667		1,723,541
Nationwide Building Society 2.58% - 2.64%, 01/06/06 - 01/27/064		2,551,028		2,551,566
Norddeutsche Landesbank 2.63%, 07/27/05		689,467		689,369
Northern Rock PLC 2.60% - 2.62%, 10/25/05 - 02/03/064		2,068,401		2,068,401
Permanent Financing PLC 2.54% - 2.57%, 03/10/05 - 09/12/05		1,861,561		1,861,561
Sedna Finance Inc. 2.56%, 01/10/06 - 01/17/06		379,207		379,129
Sigma Finance Inc. 2.54% - 2.79%, 08/17/05 - 01/09/06		3,516,282		3,516,453
Tango Finance Corp. 2.55% - 2.74%, 04/07/05 - 09/15/05		2,121,490		2,121,402
Wachovia Asset Securitization Inc. 2.64%, 03/25/05		2,068,401		2,068,400
Wells Fargo & Co. 2.56%, 03/15/064		344,733		344,783
WhistleJacket Capital LLC 2.45% - 2.57%, 06/15/05 - 01/17/06		2,413,134		2,412,925
White Pine Finance LLC 2.54% - 2.80%, 03/29/05 - 01/13/06		3,771,384		3,771,103
Winston Funding Ltd. 2.75%, 04/25/05		492,279		492,279
				52,729,794
MEDIUM-TERM NOTES3 – 0.06%
CC USA Inc. 1.29%, 04/15/054		689,467		689,458
				689,458
MONEY MARKET FUNDS3 – 0.34%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares5		3,664,151		3,664,151
BlackRock Temp Cash Money Market Fund		128,580		128,580
Short-Term Investment Co. - Prime Money Market Portfolio, Institutional Shares		260,153		260,153
				4,052,884
REPURCHASE AGREEMENTS3 – 2.28%
Bank of America N.A. Repurchase Agreements, dated 2/28/05, due 3/1/05, with a total maturity value of $15,514,140 and effective yields of 2.62% - 2.63%.6	$	15,513,007		15,513,007
Merrill Lynch Government Securities Inc. Repurchase Agreement, dated 2/28/05, due 3/1/05, with a maturity value of $11,377,036 and an effective yield of 2.63%.6		11,376,205		11,376,205
				26,889,212
TIME DEPOSITS3 – 2.03%
Abbey National Treasury Services PLC 1.39%, 04/08/05		482,627		482,619
Banco Bilbao Vizcaya Argentaria SA 2.50% - 2.51%, 03/21/05 - 03/22/05		1,034,200		1,034,202

54 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI PACIFIC EX-JAPAN INDEX FUND

February 28, 2005

Security	Principal		Value
BNP Paribas (New York) 2.78% - 3.03%, 07/11/05 - 08/23/05	$	965,254	$	965,254
Credit Suisse First Boston 2.55%, 03/22/05		689,467		689,467
Deutsche Bank AG 2.51%, 03/01/05		1,148,195		1,148,195
First Tennessee Bank 2.53%, 03/14/05 - 03/21/05		1,723,667		1,723,667
HBOS Treasury Services PLC 1.24% - 2.50%, 03/22/05 - 04/01/05		1,130,726		1,130,722
Key Bank N.A. 2.51% - 2.55%, 03/01/05 - 03/18/05		4,136,802		4,136,802
Natexis Banques 2.50% - 2.98%, 03/22/05 - 08/18/05		1,206,567		1,206,567
Norddeutsche Landesbank 2.11%, 06/07/05		689,467		689,430
Royal Bank of Scotland 2.54%, 03/22/05		172,367		172,367
Societe Generale 2.53%, 03/22/05		68,947		68,947
Toronto-Dominion Bank 1.22% - 2.66%, 03/23/05 - 11/09/05		2,757,868		2,757,747
UBS AG 2.67%, 11/09/05		275,787		275,768
Washington Mutual Bank 2.55%, 03/21/05 - 03/22/05		3,171,547		3,171,547
Wells Fargo Bank N.A. 2.52% - 2.53%, 03/17/05 - 03/22/05		4,240,222		4,240,212
				23,893,513
U.S. GOVERNMENT AGENCY NOTES3 – 0.16%
Federal Home Loan Mortgage Corp. 1.63% - 2.06%, 04/15/05 - 05/31/05		826,347		824,747
Federal National Mortgage Association 2.33%, 07/22/05		1,034,200		1,024,649
				1,849,396
TOTAL SHORT-TERM INVESTMENTS (Cost: $143,721,141)				143,721,141
TOTAL INVESTMENTS IN SECURITIES – 111.51% (Cost: $1,061,770,779)				1,314,625,579
Other Assets, Less Liabilities – (11.51%)				(135,645,324	)
NET ASSETS – 100.00%			$	1,178,980,255

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

² Non-income earning security.

³ All or a portion of these securities represent an investment of securities lending collateral. See Note 5.

⁴ All or a portion of this security is exempt from registration pursuant to Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

⁵ The Fund’s investment adviser is an affiliate of the issuer. See Note 2.

⁶ Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 2.95% to 7.85% and maturity dates ranging from 8/1/08 to 1/1/44.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 55

Schedule of Investments (Unaudited)

iSHARES^® MSCI SINGAPORE INDEX FUND

February 28, 2005

Security	Shares	Value
COMMON STOCKS – 99.96%
AIRLINES – 4.52%
Singapore Airlines Ltd.	1,443,000	$	10,659,608
			10,659,608
BANKS – 35.49%
DBS Group Holdings Ltd.	3,230,000		29,626,643
Oversea-Chinese Banking Corp. Ltd.	2,907,000		24,337,591
United Overseas Bank Ltd.	3,553,000		29,745,945
			83,710,179
BEVERAGES – 2.66%
Fraser & Neave Ltd.	646,000		6,283,234
			6,283,234
COMPUTERS – 0.89%
Creative Technology Ltd.1	177,650		2,088,778
			2,088,778
DISTRIBUTION & WHOLESALE – 0.99%
Jardine Cycle & Carriage Ltd.1	323,000		2,326,387
			2,326,387
DIVERSIFIED FINANCIAL SERVICES – 1.93%
Singapore Exchange Ltd.	3,876,000		4,557,333
			4,557,333
ELECTRONICS – 2.43%
Venture Corp. Ltd.	646,000		5,726,492
			5,726,492
ENGINEERING & CONSTRUCTION – 4.39%
SembCorp Industries Ltd.1	3,230,000		3,777,894
Singapore Technologies Engineering Ltd.1	4,522,000		6,569,559
			10,347,453
HEALTH CARE – SERVICES – 0.85%
Parkway Holdings Ltd.	1,938,000		2,004,272
			2,004,272
HOLDING COMPANIES – DIVERSIFIED – 5.21%
Haw Par Corp. Ltd.	323,000		1,024,008
Keppel Corp. Ltd.1	1,938,000		11,274,031
			12,298,039
LODGING – 0.64%
Overseas Union Enterprise Ltd.	323,000		1,501,216
			1,501,216
MEDIA – 4.62%
Singapore Press Holdings Ltd.	3,884,000		10,902,792
			10,902,792
REAL ESTATE – 8.90%
Allgreen Properties Ltd.	2,261,000		1,544,960
Capitaland Ltd.1	3,561,000		5,436,474
City Developments Ltd.	1,615,000		6,710,733
Keppel Land Ltd.	1,292,000		1,988,365
Singapore Land Ltd.1	646,000		2,266,736
United Overseas Land Ltd.	1,615,000		2,147,434
Wing Tai Holdings Ltd.	1,606,000		899,665
			20,994,367
REAL ESTATE INVESTMENT TRUSTS – 3.48%
Ascendas Real Estate Investment Trust1	2,584,000		3,149,571
CapitaMall Trust Management Ltd.	2,261,000		2,811,548
Suntec	2,834,000		2,250,522
			8,211,641
SEMICONDUCTORS – 1.77%
Chartered Semiconductor Manufacturing Ltd.1,2	3,230,000		2,187,202
STATS ChipPAC Ltd.2	3,230,000		1,988,365
			4,175,567
SHIPBUILDING – 0.99%
SembCorp Marine Ltd.1	2,261,000		2,338,318
			2,338,318
TELECOMMUNICATIONS – 13.91%
Datacraft Asia Ltd.1,2	969,000		1,017,450
Singapore Telecommunications Ltd.	19,711,650		31,792,005
			32,809,455
TRANSPORTATION – 6.29%
ComfortDelGro Corp. Ltd.	5,814,000		5,977,026
Neptune Orient Lines Ltd.	1,615,000		3,579,058
SembCorp Logistics Ltd.1	969,000		978,276
Singapore Post Ltd.	4,522,000		2,491,422
SMRT Corp. Ltd.1	3,238,000		1,813,894
			14,839,676
TOTAL COMMON STOCKS (Cost: $189,822,966)			235,774,807

56 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI SINGAPORE INDEX FUND

February 28, 2005

Security	Principal		Value
SHORT-TERM INVESTMENTS – 11.07%
COMMERCIAL PAPER3 – 2.60%
Amstel Funding Corp. 2.95%, 08/19/05	$	52,219	$	51,488
Amsterdam Funding Corp. 2.53%, 03/01/05 - 03/10/05		138,193		138,138
ANZ National Bank Ltd. 2.94%, 08/15/05		62,815		61,960
Barton Capital Corp. 2.53% - 2.54%, 03/07/05 - 03/17/05		277,965		277,741
Blue Ridge Asset Funding Corp. 2.53%, 03/23/05		138,193		137,979
Bryant Park Funding LLC 2.50%, 03/16/05		12,563		12,550
Chariot Funding LLC 2.54%, 03/21/05		125,630		125,453
Chesham Finance LLC 2.55%, 03/04/05		50,252		50,241
Corporate Asset Funding 2.55%, 03/24/05		62,815		62,713
CRC Funding LLC 2.53%, 03/11/05		31,407		31,385
Delaware Funding Corp. 2.53% - 2.54%, 03/09/05 - 03/22/05		232,970		232,712
DEPFA Bank PLC 2.28%, 05/03/05		62,815		62,565
Edison Asset Securitization 2.26% - 2.53%, 03/07/05 - 05/04/05		408,297		407,560
Fairway Finance LLC 2.53% - 2.54%, 03/09/05 - 03/22/05		119,765		119,636
Falcon Asset Securitization Corp. 2.53% - 2.54%, 03/14/05 - 03/18/05		484,381		483,815
Ford Credit Auto Receivables 2.28% - 2.55%, 03/15/05 - 04/27/05		291,712		291,176
Ford Credit Floorplan Motown 2.54% - 2.56%, 03/04/05 - 03/18/05		157,037		156,972
Fortis Funding LLC 2.35%, 05/09/05		175,882		175,090
General Electric Capital Corp. 2.53% - 2.74%, 03/08/05 - 07/07/05		276,386		275,669
Giro Funding US Corp. 2.54%, 03/14/05 - 03/18/05		151,448		151,286
Grampian Funding LLC 2.49% - 3.00%, 03/23/05 - 08/22/05		370,608		366,049
Jupiter Securitization Corp. 2.53%, 03/03/05 - 03/22/05		573,161		572,641
Kitty Hawk Funding Corp. 2.54%, 03/15/05		188,445		188,259
Liberty Street Funding Corp. 2.53% - 2.54%, 03/14/05 - 03/16/05		69,096		69,029
Moat Funding LLC 2.50%, 03/23/05		25,126		25,088
Nordea North America Inc. 2.74%, 07/11/05		62,815		62,184
Park Avenue Receivables Corp. 2.53%, 03/10/05 - 03/11/05		196,236		196,103
Park Granada LLC 2.55% - 2.58%, 03/18/05 - 03/21/05		87,941		87,828
Preferred Receivables Funding Corp. 2.53% - 2.54%, 03/14/05 - 03/21/05		266,937		266,567
Ranger Funding Co. LLC 2.54%, 03/04/05		37,359		37,351
Santander Central Hispano 2.75%, 07/08/05		157,037		155,493
Scaldis Capital LLC 2.75%, 07/08/05		31,443		31,133
Ticonderoga Master Funding Ltd. 2.54% - 2.57%, 03/21/05 - 03/24/05		213,053		212,741

SCHEDULES OF INVESTMENTS 57

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI SINGAPORE INDEX FUND

February 28, 2005

Security	Principal		Value
Tulip Funding Corp. 2.54% - 2.55%, 03/01/05	$	209,709	$	209,709
UBS Finance (Delaware) 2.62%, 03/01/05		251,260		251,260
Windmill Funding Corp. 2.55%, 03/08/05		43,970		43,949
Yorktown Capital LLC 2.53%, 03/17/05		43,970		43,921
				6,125,434
FLOATING RATE NOTES3 – 4.07%
Allstate Life Global Funding II 2.58%, 01/10/064		57,790		57,792
American Express Centurion Bank 2.58%, 01/24/06		188,445		188,445
American Express Credit Corp. 2.68%, 10/26/05		251,260		251,342
Bank of Nova Scotia 2.52% - 2.57%, 09/26/05 - 01/03/06		81,659		81,638
Beta Finance Inc. 2.53% - 2.79%, 03/15/05 - 10/27/05		471,112		471,149
Canadian Imperial Bank of Commerce 2.52% - 2.61%, 09/13/05 - 12/14/05		427,141		427,058
CC USA Inc. 2.53% - 2.66%, 05/04/05 - 07/29/05		251,260		251,239
Commodore CDO Ltd. 2.55%, 12/12/05		31,407		31,407
Den Danske Bank NY 2.52% - 2.60%, 08/12/05 - 10/17/05		376,889		376,831
DEPFA Bank PLC 2.47%, 12/15/05		125,630		125,630
Dorada Finance Inc. 2.66%, 07/29/05		104,273		104,260
Fairway Finance LLC 2.55%, 03/14/05 - 06/20/05		188,445		188,444
Fifth Third Bancorp 2.57%, 02/23/064		251,260		251,260
Five Finance Inc. 2.62% - 2.64%, 04/29/05 - 02/27/06		163,319		163,325
General Electric Capital Corp. 2.69%, 03/09/06		56,533		56,612
General Electric Commercial Equipment Financing LLC 2.56%, 11/20/05		53,654		53,654
Hartford Life Global Funding Trust 2.58%, 02/15/06		125,630		125,630
HBOS Treasury Services PLC 2.55% - 2.56%, 01/10/06 - 01/24/06		376,889		376,890
K2 USA LLC 2.55% - 2.64%, 06/10/05 - 02/15/06		565,334		565,341
Leafs LLC 2.60%, 01/20/06 - 02/21/064		131,911		131,911
Links Finance LLC 2.54% - 2.77%, 04/15/05 - 02/06/06		515,082		515,214
Lothian Mortgages PLC 2.61%, 01/24/06		251,260		251,260
MetLife Funding Inc. 2.58%, 03/06/06		188,445		188,445
National City Bank (Ohio) 2.52% - 2.58%, 06/10/05 - 08/09/05		314,075		314,051
Nationwide Building Society 2.58% - 2.64%, 01/06/06 - 01/27/064		464,830		464,929
Norddeutsche Landesbank 2.63%, 07/27/05		125,630		125,612
Northern Rock PLC 2.60% - 2.62%, 10/25/05 - 02/03/064		376,889		376,890
Permanent Financing PLC 2.54% - 2.57%, 03/10/05 - 09/12/05		339,201		339,200
Sedna Finance Inc. 2.56%, 01/10/06 - 01/17/06		69,096		69,082

58 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI SINGAPORE INDEX FUND

February 28, 2005

Security	Shares or Principal		Value
Sigma Finance Inc. 2.54% - 2.79%, 08/17/05 - 01/09/06	$	640,712	$	640,742
Tango Finance Corp. 2.55% - 2.74%, 04/07/05 - 09/15/05		386,563		386,548
Wachovia Asset Securitization Inc. 2.64%, 03/25/05		376,889		376,890
Wells Fargo & Co. 2.56%, 03/15/064		62,815		62,824
WhistleJacket Capital LLC 2.45% - 2.57%, 06/15/05 - 01/17/06		439,704		439,667
White Pine Finance LLC 2.54% - 2.80%, 03/29/05 - 01/13/06		687,195		687,143
Winston Funding Ltd. 2.75%, 04/25/05		89,700		89,700
				9,608,055
MEDIUM-TERM NOTES3 – 0.05%
CC USA Inc. 1.29%, 04/15/054		125,630		125,628
				125,628
MONEY MARKET FUNDS3 – 0.28%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares5		579,065		579,065
BlackRock Temp Cash Money Market Fund		23,429		23,429
Short-Term Investment Co. – Prime Money Market Portfolio, Institutional Shares		47,403		47,403
				649,897
REPURCHASE AGREEMENTS3 – 2.08%
Bank of America N.A. Repurchase Agreements, dated 2/28/05, due 3/1/05, with a total maturity value of $2,826,877 and effective yields of 2.62% - - 2.63%.6		2,826,673		2,826,673
Merrill Lynch Government Securities Inc. Repurchase Agreement, dated 2/28/05, due 3/1/05, with a maturity value of $ 2,073,044 and an effective yield of 2.63%.6		2,072,892		2,072,892
				4,899,565
TIME DEPOSITS3 – 1.85%
Abbey National Treasury Services PLC 1.39%, 04/08/05		87,941		87,940
Banco Bilbao Vizcaya Argentaria SA 2.50% - 2.51%, 03/21/05 - 03/22/05		188,445		188,445
BNP Paribas (New York) 2.78% - 3.03%, 07/11/05 - 08/23/05		175,882		175,882
Credit Suisse First Boston 2.55%, 03/22/05		125,630		125,630
Deutsche Bank AG 2.51%, 03/01/05		209,216		209,216
First Tennessee Bank 2.53%, 03/14/05 - 03/21/05		314,075		314,075
HBOS Treasury Services PLC 1.24% - 2.50%, 03/22/05 - 04/01/05		206,033		206,033
Key Bank N.A. 2.51% - 2.55%, 03/01/05 - 03/18/05		753,779		753,780
Natexis Banques 2.50% - 2.98%, 03/22/05 - 08/18/05		219,852		219,852
Norddeutsche Landesbank 2.11%, 06/07/05		125,630		125,623
Royal Bank of Scotland 2.54%, 03/22/05		31,407		31,407
Societe Generale 2.53%, 03/22/05		12,563		12,563
Toronto-Dominion Bank 1.22% - 2.66%, 03/23/05 - 11/09/05		502,519		502,498
UBS AG 2.67%, 11/09/05		50,252		50,248

SCHEDULES OF INVESTMENTS 59

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI SINGAPORE INDEX FUND

February 28, 2005

Security	Principal		Value
Washington Mutual Bank 2.55%, 03/21/05 - 03/22/05	$	577,898	$	577,898
Wells Fargo Bank N.A. 2.52% - 2.53%, 03/17/05 - 03/22/05		772,623		772,622
				4,353,712
U.S. GOVERNMENT AGENCY NOTES3 – 0.14%
Federal Home Loan Mortgage Corp. 1.63% - 2.06%, 04/15/05 - 05/31/05		150,571		150,281
Federal National Mortgage Association 2.33%, 07/22/05		188,445		186,704
				336,985
TOTAL SHORT-TERM INVESTMENTS (Cost: $26,099,276)				26,099,276
TOTAL INVESTMENTS IN SECURITIES – 111.03% (Cost: $215,922,242)				261,874,083
Other Assets, Less Liabilities – (11.03%)				(26,018,130	)
NET ASSETS – 100.00%			$	235,855,953

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

² Non-income earning security.

³ All or a portion of these securities represent an investment of securities lending collateral. See Note 5.

⁴ All or a portion of this security is exempt from registration pursuant to Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

⁵ The Fund’s investment adviser is an affiliate of the issuer. See Note 2.

⁶ Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 2.95% to 7.85% and maturity dates ranging from 8/1/08 to 1/1/44.

See notes to financial statements.

60 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI SOUTH AFRICA INDEX FUND

February 28, 2005

Security	Shares	Value
COMMON STOCKS – 99.95%
BANKS – 16.62%
FirstRand Ltd.	3,164,832	$	7,640,314
Nedcor Ltd.	205,017		2,830,944
Standard Bank Group Ltd.	1,295,675		14,369,683
			24,840,941
DIVERSIFIED FINANCIAL SERVICES – 2.08%
African Bank Investments Ltd.	481,222		1,444,899
Alexander Forbes Ltd.	326,932		657,243
Investec Ltd.	34,077		1,011,423
			3,113,565
ELECTRONICS – 0.76%
Reunert Ltd.	184,979		1,136,358
			1,136,358
ENGINEERING & CONSTRUCTION – 1.20%
Aveng Ltd.	437,895		906,764
Murray & Roberts Holdings Ltd.	337,514		888,187
			1,794,951
FOOD – 3.82%
Metoz Holdings Ltd.	1,869,194		870,885
Shoprite Holdings Ltd.	411,218		1,004,087
SPAR Group Ltd. (The)1	172,050		746,682
Tiger Brands Ltd.	175,861		3,089,300
			5,710,954
FOREST PRODUCTS & PAPER – 2.05%
Sappi Ltd.	226,366		3,067,145
			3,067,145
HEALTH CARE – SERVICES – 0.69%
Network Healthcare Holdings Ltd.1	1,185,184		1,032,809
			1,032,809
HOLDING COMPANIES – DIVERSIFIED – 8.56%
Anglovaal Industries Ltd.	332,149		874,069
Barloworld Ltd.	224,816		4,112,216
Bidvest Group Ltd.	264,106		3,445,881
Bidvest Group Ltd. Warrants (Expiring 12/8/06)1	17,071		57,443
Imperial Holdings Ltd.1	206,016		3,768,336
Tongaat-Hulett Group Ltd.	51,171		529,984
			12,787,929
HOME FURNISHINGS – 1.43%
Steinhoff International Holdings Ltd.	906,648		2,132,443
			2,132,443
INSURANCE – 13.66%
Liberty Group Ltd.	134,039		1,508,070
New Africa Capital Ltd.	650,831		1,269,081
Old Mutual PLC	4,101,720		11,169,039
Sanlam Ltd.	2,803,844		6,459,188
			20,405,378
IRON & STEEL – 1.55%
Iscor Ltd.	209,087		2,312,746
			2,312,746
MEDIA – 2.87%
Naspers Ltd.	319,510		4,292,810
			4,292,810
MINING – 14.00%
Anglo American Platinum Corp. Ltd.	68,154		2,704,967
AngloGold Ashanti Ltd.	139,157		4,994,721
Gold Fields Ltd.	361,897		4,312,126
Harmony Gold Mining Co. Ltd.	353,350		3,048,723
Impala Platinum Holdings Ltd.	66,378		5,853,126
			20,913,663
OIL & GAS – 10.15%
Sasol Ltd.	601,768		15,160,892
			15,160,892
PACKAGING & CONTAINERS – 1.62%
Consol Ltd.1	332,149		664,865
Nampak Ltd.	631,590		1,754,704
			2,419,569
RETAIL – 7.62%
Edgars Consolidated Stores Ltd.	48,674		2,494,574
Foschini Ltd.	218,596		1,489,609
JD Group Ltd.	173,197		1,942,659
Massmart Holdings Ltd.	194,102		1,523,997
Pick’n Pay Stores Ltd.	221,001		880,945
Truworths International Ltd.	469,012		1,408,238
Woolworths Holdings Ltd.	916,897		1,650,242
			11,390,264

SCHEDULES OF INVESTMENTS 61

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI SOUTH AFRICA INDEX FUND

February 28, 2005

Security	Shares	Value
TELECOMMUNICATIONS – 11.27%
MTN Group Ltd.	1,419,368	$	11,705,093
Telkom South Africa Ltd.	262,922		5,140,432
			16,845,525
TOTAL COMMON STOCKS (Cost: $97,017,557)			149,357,942
SHORT-TERM INVESTMENTS – 0.06%
MONEY MARKET FUNDS – 0.06%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares2	86,044		86,044
			86,044
TOTAL SHORT-TERM INVESTMENTS (Cost: $86,044)			86,044
TOTAL INVESTMENTS IN SECURITIES – 100.01% (Cost: $97,103,601)			149,443,986
Other Assets, Less Liabilities – (0.01%)			(18,878	)
NET ASSETS – 100.00%		$	149,425,108

¹ Non-income earning security.

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

See notes to financial statements.

62 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI SOUTH KOREA INDEX FUND

February 28, 2005

Security	Shares	Value
COMMON STOCKS – 96.89%
ADVERTISING – 0.58%
Cheil Communications Inc.	22,500	$	3,722,057
			3,722,057
AGRICULTURE – 1.32%
KT&G Corp.	270,000		8,490,313
			8,490,313
AIRLINES – 0.36%
Korean Air Co. Ltd.	112,500		2,302,534
			2,302,534
AUTO MANUFACTURERS – 5.33%
Hyundai Motor Co. Ltd.	468,750		26,965,350
Kia Motors Corp.	510,000		7,195,231
			34,160,581
AUTO PARTS & EQUIPMENT – 2.88%
Hankook Tire Co. Ltd.	498,750		5,549,926
Hyundai Mobis Co.	191,256		12,883,415
			18,433,341
BANKS – 8.52%
Hana Bank	352,503		10,069,013
Kookmin Bank	873,759		40,280,594
Korea Exchange Bank1	472,500		4,229,732
			54,579,339
BEVERAGES – 0.41%
Hite Brewery Co. Ltd.	30,000		2,599,106
			2,599,106
CHEMICALS – 2.73%
Hanwha Chemical Corp.	123,750		1,653,689
Honam Petrochemical Corp.	56,250		3,084,948
Kumgang Korea Chemical Co. Ltd.	18,750		2,887,481
LG Chem Ltd.	142,500		6,654,247
LG Petrochemical Co. Ltd.	105,000		2,858,420
Samsung Fine Chemicals Co. Ltd.	18,750		357,675
			17,496,460
COMMERCIAL SERVICES – 0.73%
S1 Corp.	116,250		4,683,495
			4,683,495
COMPUTERS – 0.00%
Gateway Inc.1	7		24
			24
COSMETICS & PERSONAL CARE – 0.54%
Amorepacific Corp.	15,000		3,457,526
			3,457,526
DISTRIBUTION & WHOLESALE – 1.23%
Hyosung Corp.	5		65
Samsung Corp.	495,000		7,868,853
			7,868,918
DIVERSIFIED FINANCIAL SERVICES – 5.58%
Daewoo Securities Co. Ltd.1	213,750		1,507,824
Daishin Securities Co. Ltd.	120,000		2,086,438
Dongwon Financial Holding Co. Ltd.	5		76
Hyundai Securities Co. Ltd.1	495,000		3,737,705
LG Investment & Securities Co. Ltd.1	277,500		3,253,353
Samsung Securities Co.	157,500		4,561,475
Shinhan Financial Group Ltd.	697,500		20,616,617
			35,763,488
ELECTRIC – 2.96%
Korea Electric Power Corp.	693,750		18,954,918
			18,954,918
ELECTRICAL COMPONENTS & EQUIPMENT – 27.58%
LG Cable Ltd.	67,500		1,599,478
LG Electronics Inc.	330,006		25,902,110
Samsung Electronics Co. Ltd.	285,000		149,225,037
			176,726,625
ELECTRONICS – 5.77%
Daeduck Electronics Co. Ltd.	787,541		7,018,622
Samsung Electro-Mechanics Co. Ltd.	375,000		10,618,480
Samsung SDI Co. Ltd.	157,500		19,325,633
			36,962,735
ENGINEERING & CONSTRUCTION – 1.44%
Daelim Industrial Co. Ltd.	93,750		5,868,107
Daewoo Engineering & Construction Co. Ltd.	123,750		927,049
LG Engineering & Construction Co. Ltd.	86,250		2,403,689
			9,198,845
FOOD – 1.07%
Cheil Jedang Corp.	52,500		3,698,212
Nong Shim Co. Ltd.	11,252		3,186,110
			6,884,322

SCHEDULES OF INVESTMENTS 63

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI SOUTH KOREA INDEX FUND

February 28, 2005

Security	Shares	Value
HOLDING COMPANIES – DIVERSIFIED – 0.00%
GS Holdings Corp.	2	$	53
LG Corp.	3		83
			136
HOME BUILDERS – 0.09%
Hyundai Development Co.	33,750		598,547
			598,547
HOUSEHOLD PRODUCTS & WARES – 0.18%
LG Household & Health Care Ltd.	33,750		1,136,736
			1,136,736
INSURANCE – 1.48%
Samsung Fire & Marine Insurance Co. Ltd.	116,250		9,470,939
			9,470,939
INTERNET – 1.62%
Daum Communications Corp.1	52,875		1,239,791
NCsoft Corp.1	60,004		4,322,196
NHN Corp.1	54,000		4,828,614
			10,390,601
IRON & STEEL – 7.47%
POSCO	217,500		47,865,127
			47,865,127
LODGING – 0.77%
Kangwon Land Inc.1	386,252		4,950,473
			4,950,473
MACHINERY – DIVERSIFIED – 0.34%
Daewoo Heavy Industries & Machinery Ltd.1	240,000		2,174,665
			2,174,665
MANUFACTURING – 0.36%
Cheil Industries Inc.	131,250		2,334,203
			2,334,203
MINING – 0.06%
Poongsan Corp.	26,250		389,903
			389,903
OIL & GAS – 4.46%
SK Corp.	281,250		17,688,152
S-Oil Corp.	150,000		10,879,285
			28,567,437
PHARMACEUTICALS – 0.23%
Dong-A Pharmaceutical Co. Ltd.	9		300
YuHan Corp.	15,008		1,498,563
			1,498,863
RETAIL – 2.09%
Hyundai Department Store Co. Ltd.	52,500		2,477,645
Shinsegae Department Store Co. Ltd.	33,750		10,897,914
			13,375,559
SHIPBUILDING – 3.00%
Daewoo Shipbuilding & Marine Engineering Co. Ltd.	352,500		6,514,158
Hyundai Heavy Industries Co. Ltd.	165,000		8,229,508
Samsung Heavy Industries Co. Ltd.	558,750		4,496,647
			19,240,313
TELECOMMUNICATIONS – 5.06%
KT Corp.	229,380		9,480,584
KT Corp. ADR	149,250		3,431,258
SK Telecom Co. Ltd.	103,780		18,662,871
SK Telecom Co. Ltd. ADR	41,625		880,785
			32,455,498
TRANSPORTATION – 0.65%
Hanjin Shipping Co. Ltd.	138,750		4,135,619
			4,135,619
TOTAL COMMON STOCKS (Cost: $418,980,733)			620,869,246
PREFERRED STOCKS – 1.44%
AUTO MANUFACTURERS – 0.49%
Hyundai Motor Co. Ltd.	86,250		3,162,071
			3,162,071
ELECTRICAL COMPONENTS & EQUIPMENT – 0.95%
LG Electronics Inc.	138,750		6,065,574
			6,065,574
TOTAL PREFERRED STOCKS (Cost: $6,755,736)			9,227,645

64 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI SOUTH KOREA INDEX FUND

February 28, 2005

Security	Shares	Value
SHORT-TERM INVESTMENTS – 0.29%
MONEY MARKET FUNDS – 0.29%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares2	1,890,374	$	1,890,374
			1,890,374
TOTAL SHORT-TERM INVESTMENTS (Cost: $1,890,374)			1,890,374
TOTAL INVESTMENTS IN SECURITIES – 98.62% (Cost: $427,626,843)			631,987,265
Other Assets, Less Liabilities – 1.38%			8,841,289
NET ASSETS – 100.00%		$	640,828,554

ADR – American Depositary Receipts

¹ Non-income earning security.

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

See notes to financial statements.

SCHEDULES OF INVESTMENTS 65

Schedule of Investments (Unaudited)

iSHARES^® MSCI TAIWAN INDEX FUND

February 28, 2005

Security	Shares	Value
COMMON STOCKS – 99.82%
AIRLINES – 0.47%
China Airlines	2,795,196	$	1,682,336
EVA Airways Corp.1	4,165,274		2,212,006
			3,894,342
APPAREL – 0.56%
Pou Chen Corp.	5,440,899		4,728,171
			4,728,171
AUTO MANUFACTURERS – 0.82%
China Motor Co. Ltd.	2,720,330		3,528,462
Yulon Motor Co. Ltd.	2,742,835		3,372,266
			6,900,728
AUTO PARTS & EQUIPMENT– 0.21%
Cheng Shin Rubber Industry Co. Ltd.	1,432,661		1,793,708
			1,793,708
BANKS – 11.85%
Chang Hwa Commercial Bank Ltd.1	13,600,446		9,411,316
Chinatrust Financial Holding Co. Ltd.	17,680,123		21,111,444
E.Sun Financial Holding Co. Ltd.	5,440,071		4,429,797
First Financial Holding Co. Ltd.1	14,960,050		12,952,216
Hua Nan Financial Holdings Co. Ltd.	12,240,379		10,558,164
International Bank of Taipei	6,984,756		5,260,486
Mega Financial Holding Co. Ltd.	35,360,136		23,899,673
Taishin Financial Holdings Co. Ltd.	12,240,311		11,582,399
			99,205,495
BUILDING MATERIALS – 1.10%
Asia Cement Corp.	4,080,453		2,863,015
Taiwan Cement Corp.	5,543,513		3,604,086
Taiwan Glass Industrial Corp.	2,720,492		2,705,607
			9,172,708
CHEMICALS – 9.13%
China Synthetic Rubber Corp.1	236		90
Eternal Chemical Co. Ltd.	1,360,100		949,925
Formosa Chemicals & Fibre Co.	8,160,001		16,283,233
Formosa Plastic Co.	14,960,273		27,445,625
Nan Ya Plastic Corp.	19,040,571		29,048,055
Oriental Union Chemical Corp.	1,556,802		1,698,603
Taiwan Styrene Monomer Corp.	1,360,600		1,002,824
			76,428,355
COMMERCIAL SERVICES – 0.24%
Taiwan Secom Co. Ltd.	1,360,486		2,014,237
			2,014,237
COMPUTERS – 7.90%
Acer Inc.	6,800,786		11,053,740
Advantech Co. Ltd.	1,360,792		3,306,720
Arima Computer Corp.1	2,720,600		796,828
Benq Corp.	6,820,019		7,616,822
CMC Magnetics Corp.	9,520,400		4,443,057
Compal Electronics Inc.	10,880,914		10,471,173
Inventec Co. Ltd.	5,440,525		2,801,687
Lite-On Technology Corp.	8,160,894		8,851,694
Prodisc Technology Inc.	1,595,902		654,900
Quanta Computer Inc.	6,800,125		12,146,989
Ritek Corp.	8,160,389		2,941,627
Systex Corp.	2,796,887		1,044,219
			66,129,456
DISTRIBUTION & WHOLESALE – 0.00%
Aurora Corp.1	610		357
			357
DIVERSIFIED FINANCIAL SERVICES – 3.65%
Fubon Financial Holding Co. Ltd.	14,200,000		14,944,963
Polaris Securities Co. Ltd.	2,765,666		1,513,239
SinoPac Holdings Co.	12,240,641		7,564,220
Yuanta Core Pacific Securities Co. Ltd.	8,160,788		6,566,453
			30,588,875
ELECTRICAL COMPONENTS & EQUIPMENT – 2.23%
Delta Electronics Inc.	4,193,224		7,355,349
Pacific Electric Wire & Cable Co. Ltd.1,2	986		—
Phoenixtec Power Co. Ltd.	1,362,438		1,574,236
Tatung Co. Ltd.1	13,600,120		5,077,612
Walsin Lihwa Corp.1	9,520,779		4,657,736
			18,664,933
ELECTRONICS – 16.16%
Asustek Computer Inc.	8,160,171		23,374,806
AU Optronics Corp.	14,960,740		23,401,737
Chi Mei Optoelectronics Corp.	9,520,675		14,831,048
Chunghwa Picture Tubes Ltd.1	13,600,873		6,019,054
Compeq Manufacturing Co. Ltd.1	2,720,200		844,864

66 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI TAIWAN INDEX FUND

February 28, 2005

Security	Shares	Value
Elitegroup Computer Systems Co. Ltd.	1,397,215	$	917,386
Gigabyte Technology Co. Ltd.	1,360,921		1,471,739
Hon Hai Precision Industry Co. Ltd.	9,520,773		44,279,102
Micro-Star International Co. Ltd.	1,435,113		983,840
Optimax Technology Corp.	1,360,000		3,830,061
Picvue Electronics Ltd.1	1,266,040		162,992
Quanta Display Inc.1	8,160,000		4,753,653
Synnex Technology International Corp.	2,720,436		4,071,460
WU’S Printed Circuit Co. Ltd.	1,382,504		660,772
Ya Hsin Industrial Co. Ltd.	2,720,347		2,591,640
Yageo Corp.1	8,160,100		3,138,500
			135,332,654
ENGINEERING & CONSTRUCTION – 0.27%
BES Engineering Corp.1	4,124,293		809,726
Continental Engineering Corp.	2,750,262		1,407,440
			2,217,166
FOOD – 0.66%
Uni-President Enterprises Co.	10,880,637		5,498,101
			5,498,101
FOREST PRODUCTS & PAPER – 0.23%
Yuen Foong Yu Paper Manufacturing Co. Ltd.	3,592,320		1,896,171
			1,896,171
HAND & MACHINE TOOLS – 0.12%
Shihlin Electric & Engineering Corp.	1,360,080		989,308
			989,308
HOME FURNISHINGS – 0.64%
Nien Made Enterprise Co. Ltd.	1,360,560		2,233,298
Sampo Corp.	4,192,955		985,149
Teco Electric and Machinery Co. Ltd.	6,800,092		2,177,693
			5,396,140
INSURANCE – 5.18%
Cathay Financial Holding Co. Ltd.	17,681,055		35,851,512
Shin Kong Financial Holding Co. Ltd.	7,401,957		7,504,398
			43,355,910
INVESTMENT COMPANIES – 1.87%
China Development Financial Holding Co.1	35,360,338		15,648,685
			15,648,685
IRON & STEEL – 4.06%
China Steel Corp.	28,560,707		34,011,785
Tung Ho Steel Enterprise Corp.	216		185
			34,011,970
LEISURE TIME – 0.29%
Giant Manufacturing Co. Ltd.	1,360,914		2,409,085
			2,409,085
MANUFACTURING – 0.20%
Premier Image Technology Corp.	1,397,857		1,709,642
			1,709,642
METAL FABRICATE & HARDWARE – 0.25%
Yieh Phui Enterprise	2,896,170		2,106,644
			2,106,644
MULTIPLE UTILITIES – 0.26%
Fu Sheng Industrial Co. Ltd.	1,511,000		2,188,445
			2,188,445
OFFICE & BUSINESS EQUIPMENT – 0.21%
Kinpo Electronics Inc.	4,080,733		1,792,791
			1,792,791
REAL ESTATE – 0.29%
Cathay Real Estate Development Co. Ltd.	4,080,493		2,429,647
			2,429,647
RETAIL – 0.55%
Far Eastern Department Stores Co. Ltd.	160		90
President Chain Store Corp.	2,720,640		4,597,155
			4,597,245
SEMICONDUCTORS – 24.81%
Advanced Semiconductor Engineering Inc.1	12,240,727		9,652,327
Macronix International Co. Ltd.1	17,680,200		3,471,169
MediaTek Inc.	2,720,036		20,398,081
Realtek Semiconductor Corp.	2,720,860		3,065,018
Siliconware Precision Industries Co. Ltd.	6,800,577		6,347,497
Taiwan Semiconductor Manufacturing Co. Ltd.	66,640,717		117,967,153
United Microelectronics Corp.1	59,840,390		40,060,512
Via Technologies Inc.1	2,854,861		1,653,927

SCHEDULES OF INVESTMENTS 67

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI TAIWAN INDEX FUND

February 28, 2005

Security	Shares	Value
Winbond Electronics Corp.1	13,600,280	$	5,121,444
			207,737,128
TELECOMMUNICATIONS – 3.44%
Accton Technology Corp.1	2,720,259		1,295,777
Chunghwa Telecom Co. Ltd.	6,800,000		14,007,081
D-Link Corp.	1,398,853		1,665,837
Microelectronics Technology Inc.1	420		176
Taiwan Cellular Corp.	8,160,920		8,799,190
Zyxel Communications Corp.	1,360,817		3,065,890
			28,833,951
TEXTILES – 1.09%
Far Eastern Textile Ltd.	8,469,807		6,378,934
Formosa Taffeta Co. Ltd.	2,720,777		1,409,865
Nien Hsing Textile Co. Ltd.	1,360,800		1,340,215
			9,129,014
TRANSPORTATION – 1.08%
Evergreen Marine Corp. Ltd.	2,808,177		2,901,271
Wan Hai Lines Ltd.	1,711,986		1,989,144
Yang Ming Marine Transport Corp.	4,190,667		4,127,274
			9,017,689
TOTAL COMMON STOCKS (Cost: $722,045,118)			835,818,751
SHORT-TERM INVESTMENTS – 0.07%
MONEY MARKET FUNDS – 0.07%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares3	561,843		561,843
			561,843
TOTAL SHORT-TERM INVESTMENTS (Cost: $561,843)			561,843
TOTAL INVESTMENTS IN SECURITIES – 99.89% (Cost: $722,606,961)			836,380,594
Other Assets, Less Liabilities – 0.11%			939,702
NET ASSETS – 100.00%		$	837,320,296

¹ Non-income earning security.

² Security valued at fair value in accordance with procedures approved by the Board of Directors. See Note 1.

³ The Fund’s investment adviser is an affiliate of the issuer. See Note 2.

See notes to financial statements.

68 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities (Unaudited)

iSHARES^®, INC.

February 28, 2005

	iShares MSCI
	Australia Index Fund			Brazil Index Fund			Canada Index Fund		Emerging Markets Index Fund			Hong Kong Index Fund			Malaysia Index Fund
ASSETS
Investments, at cost:
Unaffiliated issuers	$	311,684,943		$	304,604,591		$	233,187,237	$	4,211,874,617		$	663,704,310		$	257,879,678
Affiliated issuersa	$	566,201		$	1,511,654		$	149,431	$	51,985,534		$	2,398,809		$	387,128
Foreign currencies, at cost	$	659,948		$	—		$	348,632	$	4,743,569		$	623,102		$	88,255
Investments in securities, at value (including securities on loanb) (Note 1):
Unaffiliated issuers	$	365,863,540		$	474,082,456		$	313,319,056	$	5,224,148,388		$	748,837,934		$	320,536,562
Affiliated issuersa		566,201			1,511,654			149,431		58,508,336			2,398,809			387,128
Foreign currencies, at value		664,345			—			353,021		4,866,391			623,158			88,255
Receivables:
Investment securities sold		1,457,550			11,467,214			1,110,934		4,884,688			—			2,541,786
Dividends and interest		2,753,160			1,204,551			286,940		10,113,810			125,526			257,227
Capital shares sold		98,738			7,582,658			—		250,488			—			1,599,701
Total Assets		371,403,534			495,848,533			315,219,382		5,302,772,101			751,985,427			325,410,659
LIABILITIES
Payables:
Investment securities purchased		1,491,757			19,066,663			928,283		12,228,117			—			4,199,893
Collateral for securities on loan (Note 5)		24,952,366			8,818,660			—		706,557,904			108,247,525			—
Investment advisory fees (Note 2)		257,633			471,440			293,097		5,069,942			593,679			288,696
Total Liabilities		26,701,756			28,356,763			1,221,380		723,855,963			108,841,204			4,488,589
NET ASSETS	$	344,701,778		$	467,491,770		$	313,998,002	$	4,578,916,138		$	643,144,223		$	320,922,070
Net assets consist of:
Paid-in capital	$	270,863,445		$	356,004,663		$	196,447,127	$	3,574,164,686		$	568,848,438		$	294,679,148
Undistributed (distributions in excess of) net investment income		(784,623	)		1,072,154			45,970		488,468			(1,010,774	)		(320,449	)
Undistributed net realized gain (accumulated net realized loss)		20,405,518			(59,131,952	)		37,367,987		(14,656,958	)		(9,827,113	)		(36,093,513	)
Net unrealized appreciation on investments and translation of assets and liabilities in foreign currencies		54,217,438			169,546,905			80,136,918		1,018,919,942			85,133,672			62,656,884
NET ASSETS	$	344,701,778		$	467,491,770		$	313,998,002	$	4,578,916,138		$	643,144,223		$	320,922,070
Shares outstanding		19,400,000			18,550,000			17,900,000		20,800,000			53,850,000			45,150,000
Net asset value per share	$	17.77		$	25.20		$	17.54	$	220.14		$	11.94		$	7.11

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

^b Securities on loan with market values of $23,688,719, $8,519,015, $—, $677,401,361, $102,728,217 and $—, respectively. See Note 5.

See notes to financial statements.

FINANCIAL STATEMENTS 69

Statement of Assets and Liabilities (Unaudited) (Continued)

iSHARES^®, INC.

February 28, 2005

	iShares MSCI
	Mexico Index Fund			Pacific ex-Japan Index Fund			Singapore Index Fund			South Africa Index Fund		South Korea Index Fund			Taiwan Index Fund
ASSETS
Investments, at cost:
Unaffiliated issuers	$	234,256,874		$	1,058,106,628		$	215,343,177		$	97,017,557	$	425,736,469		$	722,045,118
Affiliated issuersa	$	157,816		$	3,664,151		$	579,065		$	86,044	$	1,890,374		$	561,843
Foreign currencies, at cost	$	160,755		$	1,905,779		$	562,374		$	106,276	$	—		$	612,912
Investments in securities, at value
(including securities on loanb) (Note 1):
Unaffiliated issuers	$	283,120,354		$	1,310,961,428		$	261,295,018		$	149,357,942	$	630,096,891		$	835,818,751
Affiliated issuersa		157,816			3,664,151			579,065			86,044		1,890,374			561,843
Foreign currencies, at value		161,407			1,918,498			563,610			108,309		—			614,954
Receivables:
Investment securities sold		4,908,565			4,487,099			2,042,023			—		3,673,353			3,545,603
Dividends and interest		495			6,894,904			77,538			36,820		9,864,393			1,005
Capital shares sold		3,223			—			44,228			—		8,605,249			—
Total Assets		288,351,860			1,327,926,080			264,601,482			149,589,115		654,130,260			840,542,156
LIABILITIES
Payables:
Investment securities purchased		4,899,726			5,296,802			2,422,165			—		12,674,692			2,332,325
Collateral for securities on loan (Note 5)		2,456,420			142,814,858			26,022,719			—		—			—
Investment advisory fees (Note 2)		225,480			834,165			76,194			164,007		627,014			889,535
Accrued expenses		—			—			224,451			—		—			—
Total Liabilities		7,581,626			148,945,825			28,745,529			164,007		13,301,706			3,221,860
NET ASSETS	$	280,770,234		$	1,178,980,255		$	235,855,953		$	149,425,108	$	640,828,554		$	837,320,296
Net assets consist of:
Paid-in capital	$	231,440,282		$	932,592,913		$	210,019,314		$	87,975,471	$	453,018,510		$	795,882,884
Undistributed (distributions in excess of) net investment income (accumulated net investment loss)		(238,553	)		(2,430,559	)		(1,703,078	)		401,183		7,951,078			(1,901,504	)
Undistributed net realized gain (accumulated net realized loss)		704,361			(4,146,295	)		(18,413,782	)		8,706,089		(24,828,791	)		(70,435,746	)
Net unrealized appreciation on investments and translation of assets and liabilities in foreign currencies		48,864,144			252,964,196			45,953,499			52,342,365		204,687,757			113,774,662
NET ASSETS	$	280,770,234		$	1,178,980,255		$	235,855,953		$	149,425,108	$	640,828,554		$	837,320,296
Shares outstanding		10,500,000			12,600,000			32,300,000			1,850,000		18,750,000			68,000,000
Net asset value per share	$	26.74		$	93.57		$	7.30		$	80.77	$	34.18		$	12.31

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

^b Securities on loan with market values of $2,407,852, $135,467,890, $24,331,369, $—, $— and $—, respectively. See Note 5.

See notes to financial statements.

70 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations (Unaudited)

iSHARES^®, INC.

For the six months ended February 28, 2005

	iShares MSCI
	Australia Index Fund		Brazil Index Fund		Canada Index Fund			Emerging Markets Index Fund			Hong Kong Index Fund			Malaysia Index Fund
NET INVESTMENT INCOME
Dividendsa	$	5,822,378	$	5,725,331	$	2,574,618		$	31,492,379		$	5,742,788		$	3,838,796
Dividends from affiliated issuersb		—		—		—			280,317			—			—
Interest from affiliated issuersb		1,349		12,072		1,575			60,909			2,842			5,723
Securities lending incomec		19,583		329		—			1,583,137			99,535			—
Total investment income		5,843,310		5,737,732		2,576,193			33,416,742			5,845,165			3,844,519
EXPENSES (Note 2)
Investment advisory fees		675,692		1,156,579		952,366			11,628,703			1,592,227			763,385
Stock dividend taxes		—		—		—			256,380			—			—
Total expenses		675,692		1,156,579		952,366			11,885,083			1,592,227			763,385
Net investment income		5,167,618		4,581,153		1,623,827			21,531,659			4,252,938			3,081,134
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments		442,868		942,364		(1,046,836	)		4,078,571			(573,583	)		(872,853	)
Investments in affiliated issuersb		—		—		—			(367,010	)		—			—
In-kind redemptions		30,505,756		—		52,334,378			7,303,135			6,385,878			—
Foreign currency transactions		77,042		157,923		53,295			(413,092	)		2,620			(5,181	)
Net realized gain (loss)		31,025,666		1,100,287		51,340,837			10,601,604			5,814,915			(878,034	)
Net change in unrealized appreciation (depreciation) on:
Investments		35,475,346		131,261,454		18,631,796			990,654,664			48,963,021			21,993,858
Translation of assets and liabilities in foreign currencies		44,710		59,622		2,818			198,722			101			—
Net change in unrealized appreciation (depreciation)		35,520,056		131,321,076		18,634,614			990,853,386			48,963,122			21,993,858
Net realized and unrealized gain		66,545,722		132,421,363		69,975,451			1,001,454,990			54,778,037			21,115,824
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	71,713,340	$	137,002,516	$	71,599,278		$	1,022,986,649		$	59,030,975		$	24,196,958

^a Net of foreign withholding tax of $187,034, $817,856, $454,344, $3,586,624, $— and $1,172,264, respectively.

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

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

See notes to financial statements.

FINANCIAL STATEMENTS 71

Statements of Operations (Unaudited) (Continued)

iSHARES^®, INC.

For the six months ended February 28, 2005

	iShares MSCI
	Mexico Index Fund		Pacific ex-Japan Index Fund		Singapore Index Fund		South Africa Index Fund		South Korea Index Fund			Taiwan Index Fund
NET INVESTMENT INCOME
Dividendsa	$	1,127,148	$	17,108,352	$	2,198,309	$	1,550,211	$	9,535,224		$	192,360
Interest from affiliated issuersb		916		5,075		1,258		663		5,028			4,309
Securities lending incomec		348		109,594		30,460		—		—			—
Total investment income		1,128,412		17,223,021		2,230,027		1,550,874		9,540,252			196,669
EXPENSES (Note 2)
Investment advisory fees		554,142		2,130,954		367,088		441,064		1,546,193			2,048,784
Custodian fees and expenses		—		—		57,235		—		—			—
Directors’ fees		—		—		4,938		—		—			—
Federal and state registration fees		—		—		4,248		—		—			—
Printing		—		—		23,500		—		—			—
MSCI license fee		—		—		98,817		—		—			—
Stock dividend taxes		—		—		—		—		15			49,389
Total expenses		554,142		2,130,954		555,826		441,064		1,546,208			2,098,173
Net investment income (loss)		574,270		15,092,067		1,674,201		1,109,810		7,994,044			(1,901,504	)
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments		75,085		3,208,144		872,673		127,792		(2,138,728	)		(10,450,033	)
In-kind redemptions		7,684,373		—		—		9,434,334		—			—
Foreign currency transactions		14,130		229,717		67,066		10,194		6,739			88,853
Net realized gain (loss)		7,773,588		3,437,861		939,739		9,572,320		(2,131,989	)		(10,361,180	)
Net change in unrealized appreciation (depreciation) on:
Investments		56,652,194		186,964,942		25,817,065		26,083,709		154,065,317			104,677,503
Translation of assets and liabilities in foreign currencies		1,520		120,084		1,336		11,823		327,334			11,039
Net change in unrealized appreciation (depreciation)		56,653,714		187,085,026		25,818,401		26,095,532		154,392,651			104,688,542
Net realized and unrealized gain		64,427,302		190,522,887		26,758,140		35,667,852		152,260,662			94,327,362
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	65,001,572	$	205,614,954	$	28,432,341	$	36,777,662	$	160,254,706		$	92,425,858

^a Net of foreign withholding tax of $—, $671,046, $327,772, $—, $1,884,301 and $22,945, respectively.

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

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

See notes to financial statements.

72 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets

iSHARES^®, INC.

	iShares MSCI Australia Index Fund						iShares MSCI Brazil Index Fund						iShares MSCI Canada Index Fund
	For the six months ended February 28, 2005 (Unaudited)			For the year ended August 31, 2004			For the six months ended February 28, 2005 (Unaudited)			For the year ended August 31, 2004			For the six months ended February 28, 2005 (Unaudited)			For the year ended August 31, 2004
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	5,167,618		$	5,265,617		$	4,581,153		$	8,655,485		$	1,623,827		$	2,839,492
Net realized gain		31,025,666			9,686,425			1,100,287			45,107,732			51,340,837			93,207,203
Net change in unrealized appreciation (depreciation)		35,520,056			7,651,309			131,321,076			23,024,278			18,634,614			(24,881,737	)
Net increase in net assets resulting from operations		71,713,340			22,603,351			137,002,516			76,787,495			71,599,278			71,164,958
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(9,320,851	)		(4,470,639	)		(8,052,116	)		(5,717,313	)		(3,453,495	)		(4,394,348	)
Total distributions to shareholders		(9,320,851	)		(4,470,639	)		(8,052,116	)		(5,717,313	)		(3,453,495	)		(4,394,348	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		177,394,036			106,224,512			147,613,827			265,754,092			54,328,084			98,535,887
Cost of shares redeemed		(74,083,173	)		(32,899,563	)		(18,576,041	)		(230,355,301	)		(133,773,680	)		(343,415,496	)
Net increase (decrease) in net assets from capital share transactions		103,310,863			73,324,949			129,037,786			35,398,791			(79,445,596	)		(244,879,609	)
INCREASE (DECREASE) IN NET ASSETS		165,703,352			91,457,661			257,988,186			106,468,973			(11,299,813	)		(178,108,999	)
NET ASSETS:
Beginning of period		178,998,426			87,540,765			209,503,584			103,034,611			325,297,815			503,406,814
End of period	$	344,701,778		$	178,998,426		$	467,491,770		$	209,503,584		$	313,998,002		$	325,297,815
Undistributed (distributions in excess of) net investment income included in net assets at end of period	$	(784,623	)	$	3,368,610		$	1,072,154		$	4,543,117		$	45,970		$	1,875,638
SHARES ISSUED AND REDEEMED:
Shares sold		10,800,000			8,000,000			7,100,000			18,600,000			3,200,000			7,200,000
Shares redeemed		(4,600,000	)		(2,600,000	)		(900,000	)		(14,700,000	)		(8,000,000	)		(25,600,000	)
Net increase (decrease) in shares outstanding		6,200,000			5,400,000			6,200,000			3,900,000			(4,800,000	)		(18,400,000	)

See notes to financial statements.

FINANCIAL STATEMENTS 73

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.

	iShares MSCI Emerging Markets Index Fund						iShares MSCI Hong Kong Index Fund						iShares MSCI Malaysia Index Fund
	For the six months ended February 28, 2005 (Unaudited)			For the year ended August 31, 2004			For the six months ended February 28, 2005 (Unaudited)			For the year ended August 31, 2004			For the six months ended February 28, 2005 (Unaudited)			For the year ended August 31, 2004
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	21,531,659		$	28,887,584		$	4,252,938		$	11,714,811		$	3,081,134		$	3,951,040
Net realized gain (loss)		10,601,604			34,568,649			5,814,915			23,540,083			(878,034	)		(8,032,612	)
Net change in unrealized appreciation (depreciation)		990,853,386			(1,740,338	)		48,963,122			25,672,069			21,993,858			10,040,748
Net increase in net assets resulting from operations		1,022,986,649			61,715,895			59,030,975			60,926,963			24,196,958			5,959,176
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(45,604,575	)		(4,998,228	)		(14,195,028	)		(6,211,899	)		(6,156,574	)		(2,163,298	)
Total distributions to shareholders		(45,604,575	)		(4,998,228	)		(14,195,028	)		(6,211,899	)		(6,156,574	)		(2,163,298	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		1,662,482,476			1,833,607,273			169,001,101			262,371,854			81,117,963			180,819,437
Cost of shares redeemed		(19,544,762	)		(229,574,799	)		(20,615,618	)		(117,791,065	)		(2,454,390	)		(60,126,782	)
Net increase in net assets from capital share transactions		1,642,937,714			1,604,032,474			148,385,483			144,580,789			78,663,573			120,692,655
INCREASE IN NET ASSETS		2,620,319,788			1,660,750,141			193,221,430			199,295,853			96,703,957			124,488,533
NET ASSETS:
Beginning of period		1,958,596,350			297,846,209			449,922,793			250,626,940			224,218,113			99,729,580
End of period	$	4,578,916,138		$	1,958,596,350		$	643,144,223		$	449,922,793		$	320,922,070		$	224,218,113
Undistributed (distributions in excess of) net investment income included in net assets at end of period	$	488,468		$	24,561,384		$	(1,010,774	)	$	8,931,316		$	(320,449	)	$	2,754,991
SHARES ISSUED AND REDEEMED:
Shares sold		8,800,000			11,350,000			14,325,000			25,650,000			11,250,000			26,925,000
Shares redeemed		(100,000	)		(1,450,000	)		(1,725,000	)		(12,150,000	)		(375,000	)		(9,300,000	)
Net increase in shares outstanding		8,700,000			9,900,000			12,600,000			13,500,000			10,875,000			17,625,000

See notes to financial statements.

74 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.

	iShares MSCI Mexico Index Fund						iShares MSCI Pacific ex-Japan Index Fund						iShares MSCI Singapore Index Fund
	For the six months ended February 28, 2005 (Unaudited)			For the year ended August 31, 2004			For the six months ended February 28, 2005 (Unaudited)			For the year ended August 31, 2004			For the six months ended February 28, 2005 (Unaudited)			For the year ended August 31, 2004
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	574,270		$	1,426,138		$	15,092,067		$	19,602,876		$	1,674,201		$	5,623,277
Net realized gain		7,773,588			10,436,818			3,437,861			12,895,227			939,739			264,490
Net change in unrealized appreciation (depreciation)		56,653,714			(644,904	)		187,085,026			43,117,628			25,818,401			23,413,442
Net increase in net assets resulting from operations		65,001,572			11,218,052			205,614,954			75,615,731			28,432,341			29,301,209
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(2,048,280	)		(788,654	)		(31,933,222	)		(9,962,572	)		(7,420,067	)		(3,170,833	)
Total distributions to shareholders		(2,048,280	)		(788,654	)		(31,933,222	)		(9,962,572	)		(7,420,067	)		(3,170,833	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		129,895,684			228,974,858			354,048,473			424,290,639			44,797,169			49,430,368
Cost of shares redeemed		(41,701,521	)		(169,936,912	)		—			(61,991,273	)		—			(13,716,664	)
Net increase in net assets from capital share transactions		88,194,163			59,037,946			354,048,473			362,299,366			44,797,169			35,713,704
INCREASE IN NET ASSETS		151,147,455			69,467,344			527,730,205			427,952,525			65,809,443			61,844,080
NET ASSETS:
Beginning of period		129,622,779			60,155,435			651,250,050			223,297,525			170,046,510			108,202,430
End of period	$	280,770,234		$	129,622,779		$	1,178,980,255		$	651,250,050		$	235,855,953		$	170,046,510
Undistributed (distributions in excess of) net investment income included in net assets at end of period	$	(238,553	)	$	1,235,457		$	(2,430,559	)	$	14,410,596		$	(1,703,078	)	$	4,042,788
SHARES ISSUED AND REDEEMED:
Shares sold		5,600,000			12,300,000			4,000,000			5,900,000			6,200,000			8,200,000
Shares redeemed		(1,800,000	)		(9,600,000	)		—			(900,000	)		—			(2,200,000	)
Net increase in shares outstanding		3,800,000			2,700,000			4,000,000			5,000,000			6,200,000			6,000,000

See notes to financial statements.

FINANCIAL STATEMENTS 75

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.

	iShares MSCI South Africa Index Fund						iShares MSCI South Korea Index Fund						iShares MSCI Taiwan Index Fund
	For the six months ended February 28, 2005 (Unaudited)			For the year ended August 31, 2004			For the six months ended February 28, 2005 (Unaudited)			For the year ended August 31, 2004			For the six months ended February 28, 2005 (Unaudited)			For the year ended August 31, 2004
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss)	$	1,109,810		$	1,953,405		$	7,994,044		$	2,173,679		$	(1,901,504	)	$	4,688,145
Net realized gain (loss)		9,572,320			7,316,450			(2,131,989	)		(14,302,124	)		(10,361,180	)		(20,194,826	)
Net change in unrealized appreciation (depreciation)		26,095,532			13,784,731			154,392,651			4,228,087			104,688,542			(8,427,465	)
Net increase (decrease) in net assets resulting from operations		36,777,662			23,054,586			160,254,706			(7,900,358	)		92,425,858			(23,934,146	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(2,053,497	)		(2,182,948	)		(1,677,739	)		(1,814,739	)		(4,632,113	)		(637,002	)
Total distributions to shareholders		(2,053,497	)		(2,182,948	)		(1,677,739	)		(1,814,739	)		(4,632,113	)		(637,002	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		29,354,912			14,747,859			179,190,611			213,845,316			375,135,441			223,498,562
Cost of shares redeemed		(7,536,175	)		(24,651,115	)		(12,402,726	)		(43,152,032	)		(15,836,967	)		(43,426,617	)
Net increase (decrease) in net assets from capital share transactions		21,818,737			(9,903,256	)		166,787,885			170,693,284			359,298,474			180,071,945
INCREASE IN NET ASSETS		56,542,902			10,968,382			325,364,852			160,978,187			447,092,219			155,500,797
NET ASSETS:
Beginning of period		92,882,206			81,913,824			315,463,702			154,485,515			390,228,077			234,727,280
End of period	$	149,425,108		$	92,882,206		$	640,828,554		$	315,463,702		$	837,320,296		$	390,228,077
Undistributed net investment income (accumulated net investment loss) included in net assets at end of period	$	401,183		$	1,344,870		$	7,951,078		$	1,634,773		$	(1,901,504	)	$	4,632,113
SHARES ISSUED AND REDEEMED:
Shares sold		400,000			250,000			6,200,000			8,150,000			32,800,000			18,800,000
Shares redeemed		(100,000	)		(450,000	)		(500,000	)		(1,800,000	)		(1,400,000	)		(3,950,000	)
Net increase (decrease) in shares outstanding		300,000			(200,000	)		5,700,000			6,350,000			31,400,000			14,850,000

See notes to financial statements.

76 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Australia Index Fund
	Six months ended Feb. 28, 2005 (Unaudited)			Year ended Aug. 31, 2004			Year ended Aug. 31, 2003			Year ended Aug. 31, 2002			Year ended Aug. 31, 2001			Year ended Aug. 31, 2000
Net asset value, beginning of period	$	13.56		$	11.22		$	9.36		$	9.24		$	9.93		$	9.99
Income from investment operations:
Net investment incomea		0.35			0.45			0.32			0.23			0.24			0.23
Net realized and unrealized gain (loss)		4.44			2.32			1.81			(0.07	)		(0.71	)		(0.04	)
Total from investment operations		4.79			2.77			2.13			0.16			(0.47	)		0.19
Less distributions from:
Net investment income		(0.58	)		(0.43	)		(0.27	)		(0.04	)		(0.20	)		(0.23	)
Return of capital		—			—			—			—			(0.02	)		(0.02	)
Total distributions		(0.58	)		(0.43	)		(0.27	)		(0.04	)		(0.22	)		(0.25	)
Net asset value, end of period	$	17.77		$	13.56		$	11.22		$	9.36		$	9.24		$	9.93
Total return		35.69	%b		24.95	%		23.33	%		1.74	%		(4.77	)%		1.84	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	344,702		$	178,998		$	87,541		$	76,731		$	57,312		$	61,574
Ratio of expenses to average net assetsc		0.58	%		0.79	%		0.84	%		0.84	%		0.84	%		0.95	%
Ratio of net investment income to average net assetsc		4.46	%		3.37	%		3.21	%		2.47	%		2.54	%		2.22	%
Portfolio turnover rated		11	%		9	%		8	%		5	%		23	%		36	%

^a Based on average shares outstanding throughout each period.

^b Not annualized.

^c Annualized for periods of less than one year.

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

See notes to financial statements.

FINANCIAL HIGHLIGHTS 77

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Brazil Index Fund
	Six months ended Feb. 28, 2005 (Unaudited)			Year ended Aug. 31, 2004			Year ended Aug. 31, 2003			Year ended Aug. 31, 2002			Year ended Aug. 31, 2001			Period from Jul. 10, 2000a to Aug. 31, 2000
Net asset value, beginning of period	$	16.96		$	12.19		$	8.30		$	11.20		$	19.25		$	20.22
Income from investment operations:
Net investment incomeb		0.30			0.55			0.32			0.38			0.68			0.02
Net realized and unrealized gain (loss)		8.40			4.49			3.68			(3.28	)		(8.09	)		(0.63	)
Total from investment operations		8.70			5.04			4.00			(2.90	)		(7.41	)		(0.61	)
Less distributions from:
Net investment income		(0.46	)		(0.27	)		(0.11	)		—			(0.56	)		(0.02	)
Net realized gain		—			—			—			—			—			(0.34	)
Return of capital		—			—			—			—			(0.08	)		—
Total distributions		(0.46	)		(0.27	)		(0.11	)		—			(0.64	)		(0.36	)
Net asset value, end of period	$	25.20		$	16.96		$	12.19		$	8.30		$	11.20		$	19.25
Total return		51.59	%c		41.42	%		48.85	%		(25.89	)%		(38.52	)%		(2.97	)%c
Ratios/Supplemental data:
Net assets, end of period (000s)	$	467,492		$	209,504		$	103,035		$	83,788		$	14,004		$	18,283
Ratio of expenses to average net assetsd		0.74	%		0.96	%		0.99	%		0.99	%		0.99	%		0.99	%f
Ratio of net investment income to average net assetsd		2.93	%		3.59	%		3.59	%		3.50	%		4.44	%		0.77	%g
Portfolio turnover ratee		13	%		106	%		85	%		103	%		43	%		64	%

^a Commencement of operations.

^b Based on average shares outstanding throughout each period.

^c Not annualized.

^d Annualized for periods of less than one year.

^e Portfolio turnover rates include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units solely for cash in U.S. dollars. Excluding such transactions, the portfolio turnover rate for the six months ended February 28, 2005 would have been 6%. See Note 4.

^f Ratio of expenses to average net assets prior to waived fees and reimbursed expenses for the period ended August 31, 2000 was 1.40%.

^g Ratio of net investment income to average net assets prior to waived fees and reimbursed expenses for the period ended August 31, 2000 was 0.37%.

See notes to financial statements.

78 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Canada Index Fund
	Six months ended Feb. 28, 2005 (Unaudited)			Year ended Aug. 31, 2004			Year ended Aug. 31, 2003			Year ended Aug. 31, 2002			Year ended Aug. 31, 2001			Year ended Aug. 31, 2000
Net asset value, beginning of period	$	14.33		$	12.25		$	9.49		$	10.70		$	16.94		$	13.22
Income from investment operations:
Net investment incomea		0.08			0.11			0.10			0.07			0.05			0.70
Net realized and unrealized gain (loss)		3.33			2.17			2.69			(1.27	)		(5.92	)		8.08
Total from investment operations		3.41			2.28			2.79			(1.20	)		(5.87	)		8.78
Less distributions from:
Net investment income		(0.20	)		(0.20	)		(0.03	)		(0.01	)		(0.02	)		(0.55	)
Net realized gain		—			—			—			—			(0.31	)		(4.39	)
Return of capital		—			—			—			—			(0.04	)		(0.12	)
Total distributions		(0.20	)		(0.20	)		(0.03	)		(0.01	)		(0.37	)		(5.06	)
Net asset value, end of period	$	17.54		$	14.33		$	12.25		$	9.49		$	10.70		$	16.94
Total return		23.86	%b		18.70	%		29.47	%		(11.23	)%		(34.95	)%		67.21	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	313,998		$	325,298		$	503,407		$	66,420		$	28,889		$	22,028
Ratio of expenses to average net assetsc		0.58	%		0.70	%e		0.84	%		0.84	%		0.84	%		1.17	%g
Ratio of net investment income to average net assetsc		0.99	%		0.81	%f		0.98	%		0.70	%		0.44	%		4.07	%h
Portfolio turnover rated		2	%		10	%		10	%		5	%		63	%		64	%

^a Based on average shares outstanding throughout each period.

^b Not annualized.

^c Annualized for periods of less than one year.

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

^e Ratio of expenses to average net assets prior to reimbursed distribution fees for the year ended August 31, 2004 was 0.80%.

^f Ratio of net investment income to average net assets prior to reimbursed distribution fees for the year ended August 31, 2004 was 0.71%.

^g Ratio of expenses to average net assets prior to waived fees and reimbursed expenses for the year ended August 31, 2000 was 1.19%.

^h Ratio of net investment income to average net assets prior to waived fees and reimbursed expenses for the year ended August 31, 2000 was 4.05%.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 79

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Emerging Markets Index Fund
	Six months ended Feb. 28, 2005 (Unaudited)			Year ended Aug. 31, 2004			Period from Apr. 7, 2003a to Aug. 31, 2003
Net asset value, beginning of period	$	161.87		$	135.38		$	101.25
Income from investment operations:
Net investment incomeb		1.30			3.38			0.78
Net realized and unrealized gain		59.38			23.92			33.35
Total from investment operations		60.68			27.30			34.13
Less distributions from:
Net investment income		(2.41	)		(0.81	)		—
Total distributions		(2.41	)		(0.81	)		—
Net asset value, end of period	$	220.14		$	161.87		$	135.38
Total return		37.68	%c		20.21	%		33.72	%c
Ratios/Supplemental data:
Net assets, end of period (000s)	$	4,578,916		$	1,958,596		$	297,846
Ratio of expenses to average net assetsd		0.76	%		0.76	%		0.78	%
Ratio of expenses to average net assets exclusive of foreign taxes on stock dividendsd		0.74	%		0.74	%		0.72	%
Ratio of net investment income to average net assetsd		1.38	%		2.10	%		1.58	%
Portfolio turnover ratee		8	%		8	%		10	%

^a Commencement of operations.

^b Based on average shares outstanding throughout each period.

^c Not annualized.

^d Annualized for periods of less than one year.

^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.

80 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Hong Kong Index Fund
	Six months ended Feb. 28, 2005 (Unaudited)			Year ended Aug. 31, 2004			Year ended Aug. 31, 2003			Year ended Aug. 31, 2002			Year ended Aug. 31, 2001			Year ended Aug. 31, 2000
Net asset value, beginning of period	$	10.91		$	9.03		$	7.99		$	8.93		$	13.24		$	11.83
Income from investment operations:
Net investment incomea		0.09			0.28			0.23			0.23			0.23			0.33
Net realized and unrealized gain (loss)		1.21			1.75			0.95			(1.11	)		(4.30	)		1.42
Total from investment operations		1.30			2.03			1.18			(0.88	)		(4.07	)		1.75
Less distributions from:
Net investment income		(0.27	)		(0.15	)		(0.14	)		(0.06	)		(0.23	)		(0.32	)
Return of capital		—			—			—			—			(0.01	)		(0.02	)
Total distributions		(0.27	)		(0.15	)		(0.14	)		(0.06	)		(0.24	)		(0.34	)
Net asset value, end of period	$	11.94		$	10.91		$	9.03		$	7.99		$	8.93		$	13.24
Total return		11.93	%b		22.69	%		15.14	%		(9.94	)%		(30.88	)%		14.73	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	643,144		$	449,923		$	250,627		$	99,502		$	52,946		$	79,479
Ratio of expenses to average net assetsc		0.58	%		0.80	%		0.84	%		0.84	%		0.84	%		0.94	%
Ratio of net investment income to average net assetsc		1.56	%		2.78	%		3.06	%		2.56	%		2.11	%		2.57	%
Portfolio turnover rated		3	%		5	%		10	%		15	%		43	%		21	%

^a Based on average shares outstanding throughout each period.

^b Not annualized.

^c Annualized for periods of less than one year.

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

See notes to financial statements.

FINANCIAL HIGHLIGHTS 81

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Malaysia Index Fund
	Six months ended Feb. 28, 2005 (Unaudited)			Year ended Aug. 31, 2004			Year ended Aug. 31, 2003			Year ended Aug. 31, 2002			Year ended Aug. 31, 2001			Year ended Aug. 31, 2000
Net asset value, beginning of period	$	6.54		$	5.99		$	5.68		$	5.11		$	5.96		$	5.59
Income from investment operations:
Net investment incomea		0.08			0.13			0.10			0.08			0.06			0.05
Net realized and unrealized gain (loss)		0.65			0.52			0.30			0.52			(0.85	)		0.37
Total from investment operations		0.73			0.65			0.40			0.60			(0.79	)		0.42
Less distributions from:
Net investment income		(0.16	)		(0.10	)		(0.09	)		(0.03	)		(0.06	)		(0.05	)
Return of capital		—			—			—			—			(0.00	)e		(0.00	)e
Total distributions		(0.16	)		(0.10	)		(0.09	)		(0.03	)		(0.06	)		(0.05	)
Net asset value, end of period	$	7.11		$	6.54		$	5.99		$	5.68		$	5.11		$	5.96
Total return		11.14	%b		11.01	%		7.39	%		11.82	%		(13.22	)%		7.57	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	320,922		$	224,218		$	99,730		$	93,262		$	80,877		$	99,206
Ratio of expenses to average net assetsc		0.58	%		0.79	%		0.84	%		0.84	%		0.84	%		0.96	%
Ratio of net investment income to average net assetsc		2.35	%		1.97	%		1.91	%		1.53	%		1.19	%		0.81	%
Portfolio turnover rated		5	%		39	%		35	%		37	%		37	%		18	%

^a Based on average shares outstanding throughout each period.

^b Not annualized.

^c Annualized for periods of less than one year.

^d Portfolio turnover rates include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units solely for cash in U.S. dollars. Excluding such transactions, the portfolio turnover rate for the six months ended February 28, 2005 would have been 1%. See Note 4.

^e Rounds to less than $0.01.

See notes to financial statements.

82 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Mexico Index Fund
	Six months ended Feb. 28, 2005 (Unaudited)			Year ended Aug. 31, 2004			Year ended Aug. 31, 2003			Year ended Aug. 31, 2002			Year ended Aug. 31, 2001			Year ended Aug. 31, 2000
Net asset value, beginning of period	$	19.35		$	15.04		$	13.65		$	15.35		$	16.72		$	13.39
Income from investment operations:
Net investment incomea		0.07			0.26			0.19			0.32			0.17			0.06
Net realized and unrealized gain (loss)		7.60			4.26			1.72			(1.95	)		(1.36	)		3.69
Total from investment operations		7.67			4.52			1.91			(1.63	)		(1.19	)		3.75
Less distributions from:
Net investment income		(0.28	)		(0.21	)		(0.52	)		(0.07	)		(0.15	)		—
Net realized gain		—			—			—			—			(0.03	)		(0.42	)
Total distributions		(0.28	)		(0.21	)		(0.52	)		(0.07	)		(0.18	)		(0.42	)
Net asset value, end of period	$	26.74		$	19.35		$	15.04		$	13.65		$	15.35		$	16.72
Total return		39.75	%b		30.28	%		14.60	%		(10.67	)%		(7.02	)%		28.20	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	280,770		$	129,623		$	60,155		$	70,994		$	46,056		$	40,127
Ratio of expenses to average net assetsc		0.58	%		0.78	%		0.84	%		0.84	%		0.84	%		1.04	%e
Ratio of net investment income to average net assetsc		0.60	%		1.40	%		1.43	%		2.05	%		1.12	%		0.35	%f
Portfolio turnover rated		6	%		12	%		13	%		8	%		34	%		24	%

^a Based on average shares outstanding throughout each period.

^b Not annualized.

^c Annualized for periods of less than one year.

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

^e Ratio of expenses to average net assets prior to waived fees and reimbursed expenses for the year ended August 31, 2000 was 1.04%.

^f Ratio of net investment income to average net assets prior to waived fees and reimbursed expenses for the year ended August 31, 2000 was 0.35%.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 83

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Pacific ex-Japan Index Fund
	Six months ended Feb. 28, 2005 (Unaudited)			Year ended Aug. 31, 2004			Year ended Aug. 31, 2003			Period from Oct. 25, 2001a to Aug. 31, 2002
Net asset value, beginning of period	$	75.73		$	62.03		$	52.51		$	50.03
Income from investment operations:
Net investment incomeb		1.51			2.68			1.87			1.35
Net realized and unrealized gain		19.34			12.53			8.53			1.40
Total from investment operations		20.85			15.21			10.40			2.75
Less distributions from:
Net investment income		(3.01	)		(1.51	)		(0.88	)		(0.27	)
Total distributions		(3.01	)		(1.51	)		(0.88	)		(0.27	)
Net asset value, end of period	$	93.57		$	75.73		$	62.03		$	52.51
Total return		27.81	%c		24.74	%		20.15	%		5.51	%c
Ratios/Supplemental data:
Net assets, end of period (000s)	$	1,178,980		$	651,250		$	223,298		$	105,029
Ratio of expenses to average net assetsd		0.50	%		0.50	%		0.50	%		0.50	%
Ratio of net investment income to average net assetsd		3.54	%		3.68	%		3.47	%		2.87	%
Portfolio turnover ratee		7	%		8	%		8	%		5	%

^a Commencement of operations.

^b Based on average shares outstanding throughout each period.

^c Not annualized.

^d Annualized for periods of less than one year.

^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.

84 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Singapore Index Fund
	Six months ended Feb. 28, 2005 (Unaudited)			Year ended Aug. 31, 2004			Year ended Aug. 31, 2003			Year ended Aug. 31, 2002			Year ended Aug. 31, 2001			Year ended Aug. 31, 2000
Net asset value, beginning of period	$	6.52		$	5.38		$	5.01		$	5.34		$	7.58		$	7.93
Income from investment operations:
Net investment incomea		0.06			0.22			0.12			0.07			0.07			0.13
Net realized and unrealized gain (loss)		1.00			1.04			0.33			(0.36	)		(2.16	)		(0.21	)
Total from investment operations		1.06			1.26			0.45			(0.29	)		(2.09	)		(0.08	)
Less distributions from:
Net investment income		(0.28	)		(0.12	)		(0.08	)		(0.04	)		(0.07	)		(0.11	)
Net realized gain		—			—			—			—			(0.06	)		(0.14	)
Return of capital		—			—			—			—			(0.02	)		(0.02	)
Total distributions		(0.28	)		(0.12	)		(0.08	)		(0.04	)		(0.15	)		(0.27	)
Net asset value, end of period	$	7.30		$	6.52		$	5.38		$	5.01		$	5.34		$	7.58
Total return		16.55	%b		23.47	%		9.30	%		(5.42	)%		(27.89	)%		(1.29	)%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	235,856		$	170,047		$	108,202		$	88,126		$	73,704		$	88,719
Ratio of expenses to average net assetsc		0.58	%		0.79	%		0.84	%		0.84	%		0.84	%		0.94	%
Ratio of net investment income to average net assetsc		1.75	%		3.50	%		2.67	%		1.44	%		1.15	%		1.60	%
Portfolio turnover rated		6	%		9	%		14	%		9	%		32	%		52	%

^a Based on average shares outstanding throughout each period.

^b Not annualized.

^c Annualized for periods of less than one year.

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

See notes to financial statements.

FINANCIAL HIGHLIGHTS 85

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI South Africa Index Fund
	Six months ended Feb. 28, 2005 (Unaudited)			Year ended Aug. 31, 2004			Period from Feb. 3, 2003a to Aug. 31, 2003
Net asset value, beginning of period	$	59.92		$	46.81		$	38.72
Income from investment operations:
Net investment incomeb		0.66			1.23			0.89
Net realized and unrealized gain		21.40			13.24			7.20
Total from investment operations		22.06			14.47			8.09
Less distributions from:
Net investment income		(1.21	)		(1.36	)		—
Total distributions		(1.21	)		(1.36	)		—
Net asset value, end of period	$	80.77		$	59.92		$	46.81
Total return		36.86	%c		31.30	%		20.89	%c
Ratios/Supplemental data:
Net assets, end of period (000s)	$	149,425		$	92,882		$	81,914
Ratio of expenses to average net assetsd		0.74	%		0.95	%		0.99	%
Ratio of net investment income to average net assetsd		1.86	%		2.23	%		3.86	%
Portfolio turnover ratee		3	%		13	%		17	%

^a Commencement of operations.

^b Based on average shares outstanding throughout each period.

^c Not annualized.

^d Annualized for periods of less than one year.

^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.

86 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI South Korea Index Fund
	Six months ended Feb. 28, 2005 (Unaudited)			Year ended Aug. 31, 2004			Year ended Aug. 31, 2003			Year ended Aug. 31, 2002			Year ended Aug. 31, 2001			Period from May 9, 2000a to Aug. 31, 2000
Net asset value, beginning of period	$	24.17		$	23.06		$	21.17		$	13.25		$	18.16		$	20.36
Income from investment operations:
Net investment income (loss)b		0.53			0.22			0.19			(0.00	)f		0.09			(0.04	)
Net realized and unrealized gain (loss)		9.58			1.13			1.70			7.92			(4.90	)		(2.16	)
Total from investment operations		10.11			1.35			1.89			7.92			(4.81	)		(2.20	)
Less distributions from:
Net investment income		(0.10	)		(0.24	)		—			—			(0.03	)		—
Return of capital		—			—			—			—			(0.07	)		—
Total distributions		(0.10	)		(0.24	)		—			—			(0.10	)		—
Net asset value, end of period	$	34.18		$	24.17		$	23.06		$	21.17		$	13.25		$	18.16
Total return		41.92	%c		5.83	%		8.93	%		59.77	%		(26.49	)%		(10.81	)%c
Ratios/Supplemental data:
Net assets, end of period (000s)	$	640,829		$	315,464		$	154,486		$	96,336		$	37,767		$	13,622
Ratio of expenses to average net assetsd		0.74	%		0.94	%		0.99	%		1.00	%		1.01	%		0.99	%g
Ratio of expenses to average net assets exclusive of foreign taxes on stock dividendsd		0.74	%		0.94	%		0.99	%		0.99	%		0.99	%		0.99	%
Ratio of net investment income (loss) to average net assetsd		3.83	%		0.87	%		0.98	%		(0.01	)%		0.64	%		(0.63	)%h
Portfolio turnover ratee		4	%		29	%		39	%		25	%		39	%		55	%

^a Commencement of operations.

^b Based on average shares outstanding throughout each period.

^c Not annualized.

^d Annualized for periods of less than one year.

^e Portfolio turnover rates include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units solely for cash in U.S. dollars. Excluding such transactions, the portfolio turnover rate for the six months ended February 28, 2005 would have been 3%. See Note 4.

^f Rounds to less than $0.01.

^g Ratio of expenses to average net assets prior to waived fees and reimbursed expenses for the period ended August 31, 2000 was 1.38%.

^h Ratio of net investment loss to average net assets prior to waived fees and reimbursed expenses for the period ended August 31, 2000 was (1.02)%.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 87

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Taiwan Index Fund
	Six months ended Feb. 28, 2005 (Unaudited)			Year ended Aug. 31, 2004			Year ended Aug. 31, 2003			Year ended Aug. 31, 2002			Year ended Aug. 31, 2001			Period from Jun. 20, 2000a to Aug. 31, 2000
Net asset value, beginning of period	$	10.66		$	10.79		$	8.82		$	9.01		$	16.41		$	19.59
Income from investment operations:
Net investment income (loss)b		(0.04	)		0.14			0.04			(0.03	)		(0.03	)		(0.01	)
Net realized and unrealized gain (loss)		1.77			(0.25	)		1.93			(0.16	)		(7.37	)		(2.31	)
Total from investment operations		1.73			(0.11	)		1.97			(0.19	)		(7.40	)		(2.32	)
Less distributions from:
Net investment income		(0.08	)		(0.02	)		—			—			—			(0.32	)
Net realized gain		—			—			—			—			—			(0.10	)
Return of capital		—			—			—			—			—			(0.44	)
Total distributions		(0.08	)		(0.02	)		—			—			—			(0.86	)
Net asset value, end of period	$	12.31		$	10.66		$	10.79		$	8.82		$	9.01		$	16.41
Total return		16.27	%c		(1.10	)%		22.45	%		(2.11	)%		(45.09	)%		(12.10	)%c
Ratios/Supplemental data:
Net assets, end of period (000s)	$	837,320		$	390,228		$	234,727		$	142,043		$	110,786		$	42,667
Ratio of expenses to average net assetsd		0.76	%		1.19	%f		1.31	%		1.33	%		1.60	%		1.56	%h
Ratio of expenses to average net assets exclusive of foreign taxes on stock dividendsd		0.74	%		0.92	%		0.99	%		0.99	%		0.99	%		0.99	%
Ratio of net investment income (loss) to average net assetsd		(0.69	)%		1.23	%g		0.43	%		(0.28	)%		(0.23	)%		(0.28	)%i
Portfolio turnover ratee		6	%		19	%		15	%		11	%		30	%		52	%

^a Commencement of operations.

^b Based on average shares outstanding throughout each period.

^c Not annualized.

^d Annualized for periods of less than one year.

^e Portfolio turnover rates include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units solely for cash in U.S. dollars. Excluding such transactions, the portfolio turnover rate for the six months ended February 28, 2005 would have been 3%. See Note 4.

^f Ratio of expenses to average net assets prior to reimbursed distribution fees for the year ended August 31, 2004 was 1.22%.

^g Ratio of net investment income to average net assets prior to reimbursed distribution fees for the year ended August 31, 2004 was 1.21%.

^h Ratio of expenses to average net assets prior to waived fees and reimbursed expenses for the period ended August 31, 2000 was 2.16%.

ⁱ Ratio of net investment loss to average net assets prior to waived fees and reimbursed expenses for the period ended August 31, 2000 was (0.89)%.

See notes to financial statements.

88 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to the Financial Statements (Unaudited)

iSHARES^®, INC.

1. SIGNIFICANT ACCOUNTING POLICIES

iShares, Inc. (the “Company”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Company was incorporated under the laws of the State of Maryland on September 1, 1994 pursuant to amended and restated Articles of Incorporation. As of                     , the Company offered 24 investment portfolios or funds.

These financial statements relate only to the iShares MSCI Australia, iShares MSCI Brazil, iShares MSCI Canada, iShares MSCI Emerging Markets, iShares MSCI Hong Kong, iShares MSCI Malaysia, iShares MSCI Mexico, iShares MSCI Pacific ex-Japan, iShares MSCI Singapore, iShares MSCI South Africa, iShares MSCI South Korea and iShares MSCI Taiwan 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 publicly traded equity securities in the aggregate in a particular market, as measured by a particular equity securities index compiled by Morgan Stanley Capital International Inc. (“MSCI”). The investment adviser utilizes 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 stocks in 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 foreign issuers of a single country or region, which 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; lesser 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.

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

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

Certain prior year amounts in the financial statements have been reclassified to be consistent with the current period presentation. The reclassifications had no impact on prior year net assets, net income or distributions.

SECURITY VALUATION

The securities of each Fund are valued primarily on the basis of market prices. Debt securities maturing in 60 days or less and short-term investments are valued at amortized cost.

NOTES TO THE FINANCIAL STATEMENTS 89

Notes to the Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

Securities held under a repurchase agreement are valued at a price equal to the amount of the cash investment at the time of valuation on the valuation date. The market values of the underlying securities are determined in accordance with the above discussed valuation methods, as appropriate, for the purpose of determining the adequacy of collateral.

Securities of investment companies, other than investment companies whose shares are traded on an exchange, are valued at the investment company’s published net asset value per share.

Any securities, including restricted securities or other assets for which market quotations are not readily available, or for which a significant event has occurred since the time of the most recent market quotation, are valued in accordance with fair value pricing policies approved by the Board of Directors of the Company (the “Board”).

SECURITY TRANSACTIONS, INCOME RECOGNITION AND EXPENSES

Security transactions are accounted for on trade date. Dividend income is recognized on the ex-dividend date and interest income is accrued daily. Realized gains and losses on investment transactions are determined using the specific identification method. Common expenses incurred by the Company prior to December 28, 2001 were allocated to the Funds based on the ratio of average net assets of each Fund to the combined net assets of all funds offered by the Company, or other appropriate method. Other expenses, directly related to a specific fund, were charged to that fund. The expenses for the iShares MSCI Singapore Index Fund are still allocated to that Fund using this methodology. Additional details of the current expense structure may be found in Note 2.

FOREIGN CURRENCY TRANSLATION

The accounting records of the Funds are maintained in U.S. dollars. Purchases and sales of securities, income receipts and expense payments are translated into U.S. dollars at the prevailing exchange rate on the respective dates of such transactions.

Foreign currencies, investment securities and assets and liabilities denominated in foreign currencies are converted into U.S. dollars using exchange rates deemed appropriate by the investment adviser. Any use of a different rate from the rates used by MSCI may adversely affect a Fund’s ability to track its underlying index.

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

South Korea and Taiwan may levy taxes on stock dividends at rates of 16.5% and up to 20.0%, respectively, based on the par value of stock dividends received by the iShares MSCI Emerging Markets, iShares MSCI South Korea, and iShares MSCI Taiwan Index Funds. These taxes are paid by the Funds receiving the stock dividends and, if any, are disclosed in their respective Statement of Operations.

DISTRIBUTIONS TO SHAREHOLDERS

Distributions to shareholders from net investment income, if any, including any net foreign currency gains, are declared and distributed at least annually by each Fund. Distributions of net realized 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.

90 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to the Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

As of August 31, 2004, the tax year-end of the Funds, the components of distributable earnings (accumulated losses) on a tax basis were as follows:

iShares MSCI Index Fund	Undistributed Ordinary Income		Unrealized Appreciation (Depreciation)			Capital and Other Losses			Net Distributable Earnings (Accumulated Losses)
Australia	$	5,429,570	$	14,568,318		$	(8,552,044	)	$	11,445,844
Brazil		4,543,117		34,654,996			(56,661,406	)		(17,463,293	)
Canada		1,875,638		56,305,316			(8,775,862	)		49,405,092
Emerging Markets		24,561,384		25,136,070			(22,328,076	)		27,369,378
Hong Kong		8,935,684		35,590,687			(15,066,533	)		29,459,838
Malaysia		2,837,795		34,334,322			(28,969,579	)		8,202,538
Mexico		1,235,457		(8,061,393	)		(6,797,404	)		(13,623,340	)
Pacific ex-Japan		18,973,843		59,784,427			(6,052,660	)		72,705,610
Singapore		4,608,572		17,491,740			(17,275,947	)		4,824,365
South Africa		1,344,870		26,207,263			(826,661	)		26,725,472
South Korea		1,634,773		43,579,808			(15,981,504	)		29,233,077
Taiwan		4,632,113		(8,554,539	)		(42,433,907	)		(46,356,333	)

For the six months ended February 28, 2005 and for the year ended August 31, 2004, the tax characterization of distributions paid for each Fund was equal to the book characterization of distributions paid. The total distributions and distributions per share are disclosed in the accompanying Statements of Changes in Net Assets and the Financial Highlights for all Funds.

FEDERAL INCOME TAXES

Each Fund is treated as a separate entity for federal income tax purposes. It is the policy of each Fund to qualify as a regulated investment company by complying with the provisions applicable to regulated investment companies, as defined under Subchapter M of the Internal Revenue Code of 1986, as amended, and to annually distribute substantially all of its net income and any net gains (taking into account any capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income and excise taxes. Accordingly, no provision for federal income taxes was required for the six months ended February 28, 2005.

NOTES TO THE FINANCIAL STATEMENTS 91

Notes to the Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

The Funds had tax basis net capital loss carryforwards as of August 31, 2004, the tax year-end of the Funds, as follows:

iShares MSCI Index Fund	Expiring 2007		Expiring 2008		Expiring 2009		Expiring 2010		Expiring 2011		Expiring 2012		Total
Australia	$	674,889	$	630,985	$	1,971,994	$	3,625,203	$	650,082	$	596,240	$	8,149,393
Brazil		—		—		—		—		56,661,406		—		56,661,406
Canada		—		—		—		780,114		21,276		2,463,817		3,265,207
Emerging Markets		—		—		—		—		—		840,778		840,778
Hong Kong		4,085,707		—		—		4,971,970		2,870,602		2,330,414		14,258,693
Malaysia		8,654,333		—		—		9,819,029		2,898,105		775,477		22,146,944
Mexico		—		—		—		1,319,032		2,329,290		3,136,170		6,784,492
Pacific ex-Japan		—		—		—		—		329,461		2,563,114		2,892,575
Singapore		—		—		—		4,810,766		4,428,316		4,256,421		13,495,503
South Africa		—		—		—		—		—		693,601		693,601
South Korea		—		—		556,540		666,642		504,041		3,363,449		5,090,672
Taiwan		—		—		—		12,532,361		8,689,663		9,129,874		30,351,898

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

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

As of February 28, 2005, the aggregate unrealized appreciation and depreciation based on cost for federal income tax purposes were as follows:

iShares MSCI Index Fund	Tax Cost		Unrealized Appreciation		Unrealized Depreciation			Net Unrealized Appreciation
Australia	$	316,887,521	$	49,675,676	$	(133,456	)	$	49,542,220
Brazil		310,665,227		165,929,750		(1,000,867	)		164,928,883
Canada		238,664,198		80,075,802		(5,271,513	)		74,804,289
Emerging Markets		4,268,275,406		1,036,880,560		(22,499,242	)		1,014,381,318
Hong Kong		667,343,833		91,310,546		(7,417,636	)		83,892,910
Malaysia		265,422,422		57,812,991		(2,311,723	)		55,501,268
Mexico		235,006,795		48,641,530		(370,155	)		48,271,375
Pacific ex-Japan		1,068,469,578		247,429,959		(1,273,958	)		246,156,001
Singapore		219,151,114		44,595,675		(1,872,706	)		42,722,969
South Africa		97,354,280		53,480,208		(1,390,502	)		52,089,706
South Korea		436,116,888		197,833,052		(1,962,675	)		195,870,377
Taiwan		749,805,280		101,426,337		(14,851,023	)		86,575,314

92 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to the Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

REPURCHASE AGREEMENTS

Each Fund may enter into repurchase agreements with banks and securities dealers. These transactions involve the purchase of securities with a simultaneous commitment to resell the securities to the bank or the dealer at an agreed-upon date and price. A repurchase agreement is accounted for as an investment by the Fund, collateralized by securities, which are delivered to the Fund’s custodian or to an agent bank under a tri-party agreement. The securities are marked-to-market daily and additional securities are acquired as needed, to ensure that their value equals or exceeds the repurchase price plus accrued interest. As of February 28, 2005, a portion of the cash collateral for securities on loan for certain Funds was invested in repurchase agreements as disclosed in each Fund’s Schedule of Investments. For further information, see Note 5, below.

2. AGREEMENTS AND OTHER TRANSACTIONS WITH AFFILIATES

Pursuant to an Investment Advisory Agreement with the Company, as amended, 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 of the expenses (“Covered Expenses”) of each of the Funds, 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.

Prior to December 28, 2001 and pursuant to the prior investment advisory agreement, the investment advisory fee earned by and paid to BGFA with respect to each Fund was reduced by the aggregate of such Fund’s fees and expenses (subject to the exceptions in the prior sentence). BGFA also agreed to reimburse each Fund to the extent that the expenses of any Fund (subject to the same exceptions) exceeded the investment advisory fee as stated in the investment advisory fee tables below. These fee reduction and reimbursement provisions still apply to the iShares MSCI Singapore Index Fund.

For its investment advisory services to the iShares MSCI Australia, iShares MSCI Canada, iShares MSCI Hong Kong, iShares MSCI Malaysia, iShares MSCI Mexico and iShares MSCI Singapore Index Funds, BGFA is entitled to an annual investment advisory fee based on each Fund’s allocable portion of the aggregate net assets of all the funds offered by the Company (except for the iShares MSCI Brazil, iShares MSCI Emerging Markets, iShares MSCI Pacific ex-Japan, iShares MSCI South Africa, iShares MSCI South Korea and iShares MSCI Taiwan Index Funds) as follows:

Investment Advisory Fee	Aggregate Net Assets
0.59%	First $7 billion
0.54	Over $7 billion, up to and including $11 billion
0.49	Over $11 billion

For its investment advisory services to the iShares MSCI Brazil, iShares MSCI South Africa, iShares MSCI South Korea and iShares MSCI Taiwan Index Funds, BGFA is entitled to an annual investment advisory fee based on each Fund’s allocable portion of the aggregate net assets of these four Funds as follows:

Investment Advisory Fee	Aggregate Net Assets
0.74%	First $2 billion
0.69	Over $2 billion, up to and including $4 billion
0.64	Over $4 billion

For its investment advisory services to the iShares MSCI Pacific ex-Japan Index Fund, BGFA is entitled to an annual investment advisory fee based on the average daily net assets of the Fund of 0.50%. For its investment advisory services to the iShares MSCI Emerging Markets Index Fund, BGFA is entitled to an annual investment advisory fee based on the average daily net assets of the Fund excluding any investments in other iShares Funds, of 0.75%.

NOTES TO THE FINANCIAL STATEMENTS 93

Notes to the Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

Barclays Global Investors, N.A. (“BGI”) has a license agreement with MSCI for the use of the relevant MSCI indices. Under a sub-license agreement between BGI and the Funds, except for the iShares MSCI Singapore Index Fund, the fees for the use of such MSCI indices are paid directly by BGI to MSCI.

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

BGI serves as securities lending agent for the Company. BGI is an affiliate 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 six months ended February 28, 2005, BGI earned securities lending agent fees as follows:

iShares MSCI Index Fund	Securities Lending Agent Fees
Australia	$	19,583
Brazil		329
Emerging Markets		1,583,137
Hong Kong		99,535
Mexico		348
Pacific ex-Japan		109,594
Singapore		30,460

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

Pursuant to Rule 17a-7 under the 1940 Act, certain Funds executed cross trades for the six months ended February 28, 2005. Cross trading is the buying or selling of portfolio securities between funds to which BGFA (or an affiliate) serves as investment adviser. The Board reviewed all such transactions executed during the first four months of the fiscal half-year and concluded that they were in compliance with the requirements and restrictions set forth in Rule 17a-7. The Board is scheduled at its next meeting to review all such transactions executed during the last two months of the fiscal half-year.

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

94 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to the Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

The iShares MSCI Emerging Markets Index Fund, in order to improve its portfolio liquidity and its ability to track the MSCI Emerging Markets Index, may invest in shares of other iShares Funds that invest in securities in the Fund’s benchmark index. As of February 28, 2005, the iShares MSCI Emerging Markets Index Fund held shares of the iShares MSCI Malaysia, iShares MSCI South Korea and iShares MSCI Taiwan Index Funds.

The following table provides information about the investment by each Fund in shares of issuers of which BGFA is an affiliate for the six months ended February 28, 2005, including income earned from these affiliated issuers and net realized gains (losses) from sales of these affiliated issuers.

iShares MSCI Index Fund Name of Affiliated Issuer	Number of Shares Held Beginning of Period (in 000s)	Gross Additions (in 000s)	Gross Reductions (in 000s)	Number of Shares Held End of Period (in 000s)	Value at End of Period		Dividend and Interest Income		Net Realized Loss
Australia
IMMF	120	12,180	12,216	84	$	84,351	$	1,349	$	—
Brazil
IMMF	981	50,541	50,181	1,341		1,341,371		12,072		—
Canada
IMMF	199	7,121	7,171	149		149,431		1,575		—
Emerging Markets
IMMF	5,432	222,765	222,098	6,099		6,099,281		60,909		—
iShares MSCI Malaysia Index Fund	851	345	226	970		6,955,366		143,660		(43,315	)
iShares MSCI South Korea Index Fund	299	160	64	395		13,562,307		37,162		(99,906	)
iShares MSCI Taiwan Index Fund	965	700	198	1,467		18,247,191		99,495		(223,789	)
Hong Kong
IMMF	213	23,949	23,854	308		308,472		2,842		—
Malaysia
IMMF	394	21,977	21,984	387		387,127		5,723		—
Mexico
IMMF	85	5,607	5,582	110		110,395		916		—
Pacific ex-Japan
IMMF	308	43,161	42,563	906		906,283		5,075		—
Singapore
IMMF	87	8,529	8,539	77		76,557		1,258		—
South Africa
IMMF	58	4,150	4,122	86		86,044		663		—
South Korea
IMMF	721	21,118	19,949	1,890		1,890,374		5,028		—
Taiwan
IMMF	366	21,207	21,011	562		561,843		4,309		—

NOTES TO THE FINANCIAL STATEMENTS 95

Notes to the Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

During the six months ended February 28, 2005, certain Funds invested cash collateral from securities on loan in the GMMF, IMMF and PMMF. Due to the nature of the structure of the joint account used for the investment of the collateral for securities on loan, the information reported above for these Funds does not include the Funds’ holdings of the GMMF, IMMF and PMMF in connection with the investment of collateral for securities on loan.

As of February 28, 2005, certain directors and officers of the Company are also officers of BGI.

3. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the six months ended February 28, 2005, were as follows:

iShares MSCI Index Fund	Purchases		Sales
Australia	$	25,063,425	$	30,396,293
Brazil		165,992,186		40,475,318
Canada		7,575,367		11,630,042
Emerging Markets		249,541,719		255,950,602
Hong Kong		18,586,092		27,198,388
Malaysia		89,083,253		13,504,776
Mexico		10,835,577		12,161,747
Pacific ex-Japan		63,169,142		80,570,491
Singapore		11,384,968		15,280,225
South Africa		3,624,422		5,037,124
South Korea		182,258,710		18,719,568
Taiwan		389,749,167		35,690,751

In-kind transactions (see Note 4) for the six months ended February 28, 2005, were as follows:

iShares MSCI Index Fund	In-kind Purchases		In-kind Sales
Australia	$	176,534,176	$	73,633,336
Canada		54,102,114		131,146,178
Emerging Markets		1,669,435,247		42,663,041
Hong Kong		168,447,399		20,585,022
Mexico		129,748,217		41,658,807
Pacific ex-Japan		351,937,894		—
Singapore		44,493,056		—
South Africa		51,609,334		29,065,671

96 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to the Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

4. CAPITAL SHARE TRANSACTIONS

The Company has authorized 10.9 billion shares of $.001 par value capital stock. The number of shares authorized to each Fund are as follows:

iShares MSCI Index Fund	Authorized Shares	iShares MSCI Index Fund	Authorized Shares
Australia	127,800,000	Mexico	255,000,000
Brazil	500,000,000	Pacific ex-Japan	500,000,000
Canada	340,200,000	Singapore	191,400,000
Emerging Markets	500,000,000	South Africa	200,000,000
Hong Kong	191,400,000	South Korea	200,000,000
Malaysia	127,800,000	Taiwan	200,000,000

The Company issues and redeems capital shares of each Fund only in aggregations of a specified number of shares (each, a “Creation Unit”) at net asset value. Except when aggregated in Creation Units, shares of each Fund are not redeemable. Transactions in capital shares for each Fund are disclosed in detail in the Statements of Changes in Net Assets.

The consideration for the purchase of Creation Units of a Fund generally consists of the in-kind contribution of a designated portfolio of equity securities constituting a portfolio sampling representation of the corresponding MSCI Index and an amount of cash (except for the iShares MSCI Brazil, iShares MSCI Malaysia, iShares MSCI South Korea and iShares MSCI Taiwan Index Funds which are offered in Creation Units solely for cash in U.S. dollars). A purchase transaction fee and a redemption transaction fee are charged to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units, including Creation Units for cash.

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

As of February 28, 2005, certain Funds had loaned securities which were collateralized by cash. The cash collateral received was invested in a joint account with other funds managed by BGFA, which invests in securities with remaining maturities of 397 days or less, repurchase agreements and money market mutual funds, including money market funds managed by BGFA. Repurchase agreements held in the joint account are fully collateralized by U.S. Government securities. Income from the joint account is allocated daily to each Fund, based on each Fund’s portion of the total cash collateral received. The market value of the securities on loan as of February 28, 2005 and the value of the related collateral are disclosed in the Statements of Assets and Liabilities. Securities lending income, which is disclosed in the Funds’ Statements of Operations, is presented net of rebates paid to, or fees paid by, borrowers.

NOTES TO THE FINANCIAL STATEMENTS 97

The iShares^® Family of Funds

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

iShares S&P Domestic Index Funds

iShares S&P 1500 (ISI)

iShares S&P 500 (IVV)

iShares S&P 500/BARRA Growth (IVW)

iShares S&P 500/BARRA Value (IVE)

iShares S&P MidCap 400 (IJH)

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

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

iShares S&P SmallCap 600 (IJR)

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

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

iShares S&P 100 (OEF)

iShares Sector and Specialty Index Funds

iShares Cohen & Steers Realty Majors (ICF)

iShares Dow Jones Select Dividend (DVY)

iShares Dow Jones Transportation Average (IYT)

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

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

iShares Dow Jones U.S. Consumer Non-Cyclical Sector (IYK)

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

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

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

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

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

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

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

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

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

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

iShares Goldman Sachs Natural Resources (IGE)

iShares Goldman Sachs Networking (IGN)

iShares Goldman Sachs Semiconductor (IGW)

iShares Goldman Sachs Software (IGV)

iShares Goldman Sachs Technology (IGM)

iShares KLD Select Social^SM (KLD)

iShares Nasdaq Biotechnology (IBB)

iShares S&P Global Energy Sector (IXC)

iShares S&P Global Financials Sector (IXG)

iShares S&P Global Healthcare Sector (IXJ)

iShares S&P Global Technology Sector (IXN)

iShares S&P Global Telecommunications Sector (IXP)

iShares Russell Index Funds

iShares Russell 3000 (IWV)

iShares Russell 3000 Growth (IWZ)

iShares Russell 3000 Value (IWW)

iShares Russell 1000 (IWB)

iShares Russell 1000 Growth (IWF)

iShares Russell 1000 Value (IWD)

iShares Russell Midcap (IWR)

iShares Russell Midcap Growth (IWP)

iShares Russell Midcap Value (IWS)

iShares Russell 2000 (IWM)

iShares Russell 2000 Growth (IWO)

iShares Russell 2000 Value (IWN)

iShares International Index Funds

iShares FTSE/Xinhua China 25 (FXI)

iShares MSCI Australia (EWA)

iShares MSCI Austria (EWO)

iShares MSCI Belgium (EWK)

iShares MSCI Brazil (EWZ)

iShares MSCI Canada (EWC)

iShares MSCI EAFE (EFA)

iShares MSCI Emerging Markets (EEM)

iShares MSCI EMU (EZU)

iShares MSCI France (EWQ)

iShares MSCI Germany (EWG)

iShares MSCI Hong Kong (EWH)

iShares MSCI Italy (EWI)

iShares MSCI Japan (EWJ)

iShares MSCI Malaysia (EWM)

iShares MSCI Mexico (EWW)

iShares MSCI Netherlands (EWN)

iShares MSCI Pacific ex-Japan (EPP)

iShares MSCI Singapore (EWS)

iShares MSCI South Africa (EZA)

iShares MSCI South Korea (EWY)

iShares MSCI Spain (EWP)

iShares MSCI Sweden (EWD)

iShares MSCI Switzerland (EWL)

iShares MSCI Taiwan (EWT)

iShares MSCI United Kingdom (EWU)

iShares S&P Europe 350 (IEV)

iShares S&P Global 100 (IOO)

iShares S&P Latin America 40 (ILF)

iShares S&P/TOPIX 150 (ITF)

iShares Bond Funds

iShares GS $ InvesTop^™ Corporate (LQD)

iShares Lehman Aggregate (AGG)

iShares Lehman TIPS (TIP)

iShares Lehman 1-3 Year Treasury (SHY)

iShares Lehman 7-10 Year Treasury (IEF)

iShares Lehman 20+ Year Treasury (TLT)

iShares NYSE Index Funds

iShares NYSE 100 (NY)

iShares NYSE Composite (NYC)

iShares Morningstar Index Funds

iShares Morningstar Large Core (JKD)

iShares Morningstar Large Growth (JKE)

iShares Morningstar Large Value (JKF)

iShares Morningstar Mid Core (JKG)

iShares Morningstar Mid Growth (JKH)

iShares Morningstar Mid Value (JKI)

iShares Morningstar Small Core (JKJ)

iShares Morningstar Small Growth (JKK)

iShares Morningstar Small Value (JKL)

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

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

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

1667-iS-0305

98 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

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

The iShares Funds are not sponsored, endorsed, issued, sold or promoted by Morgan Stanley Capital International, Inc., nor does this company make any representation regarding the advisability of investing in the iShares Funds.

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

Investing involves risk, including possible loss of principal.

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

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

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

BGI-F-035-02005

BARCLAYS GLOBAL INVESTORS

iShares®

2005 SEMI-ANNUAL REPORT TO SHAREHOLDERS    |    FEBRUARY 28, 2005

iSHARES MSCI SERIES

Electronic delivery of this document may be

available to you. See inside for details.    

iSHARES MSCI JAPAN INDEX FUND

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

Fund Performance Overview	1
Shareholder Expenses	2
Schedule of Investments	3
Financial Statements	12
Financial Highlights	15
Notes to the Financial Statements	16
iShares Family of Funds	22

Fund Performance Overview

iSHARES^® MSCI JAPAN INDEX FUND

Performance as of 2/28/05

The iShares MSCI Japan Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the Japanese market, as measured by the MSCI Japan Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which have a similar investment profile as the Index. For the six months ended February 28, 2005, the Fund returned 9.75%, while the Index returned 10.09%.

Average Annual Total Returns
Year Ended 2/28/05			Five Years Ended 2/28/05			Inception to 2/28/05
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
12.83%	11.90%	13.79%	(5.71)%	(5.86)%	(5.21)%	(2.91)%	(2.91)%	(2.16)%

Cumulative Total Returns
Year Ended 2/28/05			Five Years Ended 2/28/05			Inception to 2/28/05
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
12.83%	11.90%	13.79%	(25.45)%	(26.06)%	(23.47)%	(23.24)%	(23.26)%	(17.81)%

Total returns for the periods since inception are calculated from the inception date of the Fund (3/12/96). “Average annual total returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative total returns” represent the total change in value of an investment over the periods indicated.

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until several days after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (3/18/96), the NAV of the Fund is used as a proxy for the secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

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

PORTFOLIO ALLOCATION

As of 2/28/05

Sector	% of Net Assets
Consumer Cyclical	24.72	%
Industrial	21.02
Financial	17.97
Consumer Non-Cyclical	11.45
Basic Materials	7.48
Technology	5.97
Utilities	5.18
Communications	5.10
Energy	1.04
Short-Term and Other Net Assets	0.07
TOTAL	100.00	%

TOP TEN FUND HOLDINGS

As of 2/28/05

Security	% of Net Assets
Toyota Motor Corp.	5.78	%
Canon Inc.	2.29
Takeda Pharmaceutical Co. Ltd.	2.22
Mitsubishi Tokyo Financial Group Inc.	2.12
Honda Motor Co. Ltd.	2.07
Mizuho Financial Group Inc.	1.88
Sony Corp.	1.83
NTT DoCoMo Inc.	1.71
Matsushita Electric Industrial Co. Ltd.	1.62
Sumitomo Mitsui Financial Group Inc.	1.50
TOTAL	23.02	%

FUND PERFORMANCE OVERVIEW 1

Shareholder Expenses

iSHARES^® MSCI JAPAN 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 September 1, 2004 to February 28, 2005.

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 (September 1, 2004)		Ending Account Value (February 28, 2005)		Annualized Expense Ratio		Expenses Paid During Period* (September 1, 2004 to February 28, 2005)
Actual	$	1,000.00	$	1,097.50	0.58	%	$	3.02
Hypothetical (5% return before expenses)		1,000.00		1,021.92	0.58			2.91

* 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).

2 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI JAPAN INDEX FUND

February 28, 2005

Security	Shares	Value
COMMON STOCKS – 99.93%
ADVERTISING – 0.25%
Asatsu-DK Inc.1	106,600	$	3,209,699
Dentsu Inc.1	5,330		14,208,563
			17,418,262
AGRICULTURE – 0.51%
Japan Tobacco Inc.	3,198		34,959,199
			34,959,199
AIRLINES – 0.21%
All Nippon Airways Co. Ltd.1	2,125,000		7,906,219
Japan Airlines System Corp.1,2	2,132,000		6,439,852
			14,346,071
APPAREL – 0.36%
Gunze Ltd.	1,066,000		4,957,664
Onward Kashiyama Co. Ltd.	1,066,000		15,772,527
World Co. Ltd.	106,600		3,915,022
			24,645,213
AUTO MANUFACTURERS – 9.33%
Hino Motors Ltd.1	1,066,000		6,838,510
Honda Motor Co. Ltd.	2,665,100		143,368,759
Nissan Motors Co. Ltd.1	8,847,800		95,447,811
Toyota Motor Corp.	10,233,600		399,393,508
			645,048,588
AUTO PARTS & EQUIPMENT – 1.62%
Aisin Seiki Co. Ltd.1	319,800		7,237,167
Bridgestone Corp.	2,132,000		40,806,175
Denso Corp.	2,025,400		51,953,253
NOK Corp.1	319,800		7,942,485
Toyoda Gosei Co. Ltd.1	213,200		4,031,552
			111,970,632
BANKS – 9.71%
Bank of Fukuoka Ltd.1	2,132,000		12,920,592
Bank of Yokohama Ltd. (The)	4,264,000		26,331,841
Chiba Bank Ltd. (The)	2,132,000		13,779,240
Gunma Bank Ltd.	1,066,000		6,133,193
Joyo Bank Ltd.	3,198,000		17,142,273
Kokuhoku Financial Group Inc.	2,132,000		6,746,512
Mitsubishi Tokyo Financial Group Inc.1	15,990		146,276,646
Mitsui Trust Holdings Inc.1	2,132,000		22,611,037
Mizuho Financial Group Inc.	26,650		130,330,345
Resona Holdings Inc.2	14,924,000		30,625,076
77 Bank Ltd. (The)	1,066,000		7,554,049
Shinsei Bank Ltd.1	3,198,000		18,798,236
Shizuoka Bank Ltd. (The)	2,132,000		21,793,278
Sumitomo Mitsui Financial Group Inc.1	14,917		103,847,553
Sumitomo Trust & Banking Co. Ltd. (The)	4,264,000		29,398,437
UFJ Holdings Inc.2	13,858		76,808,016
			671,096,324
BEVERAGES – 1.01%
Asahi Breweries Ltd.	1,066,000		13,901,904
Coca-Cola West Japan Co. Ltd.	213,200		4,988,330
Ito En Ltd.1	106,600		5,550,539
Kirin Brewery Co. Ltd.1	3,198,000		32,628,585
Sapporo Breweries Ltd.1	1,066,000		4,947,442
Takara Holdings Inc.1	1,066,000		8,003,816
			70,020,616
BUILDING MATERIALS – 1.45%
Asahi Glass Co. Ltd.1	3,198,000		35,327,190
Daikin Industries Ltd.1	746,200		18,675,572
JS Group Corp.	1,066,000		19,544,440
Matsushita Electric Works Ltd.	1,066,000		9,649,556
Nippon Sheet Glass Co. Ltd.1	1,066,000		4,753,224
Sumitomo Osaka Cement Co. Ltd.1	1,066,000		2,882,601
Taiheiyo Cement Corp.	3,198,000		9,598,446
			100,431,029
CHEMICALS – 4.01%
Asahi Kasei Corp.1	4,264,000		22,651,925
Daicel Chemical Industries Ltd.	1,066,000		5,918,531
Dainippon Ink & Chemical Inc.	2,132,000		6,010,529
Denki Kagaku Kogyo Kabushiki Kaisha	2,132,000		7,646,047
Ishihara Sangyo Kaisha Ltd.1	1,066,000		2,565,719
JSR Corp.1	746,200		15,598,753
Kaneka Corp.	1,066,000		12,164,165
Mitsubishi Chemical Corp.	6,396,000		21,772,834
Mitsubishi Gas Chemical Co. Inc.	1,066,000		5,530,095
Mitsui Chemicals Inc.	2,132,000		12,429,937
Nippon Kayaku Co. Ltd.1	1,066,000		6,419,409

SCHEDULE OF INVESTMENTS 3

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI JAPAN INDEX FUND

February 28, 2005

Security	Shares	Value
Nippon Shokubai Co. Ltd.	1,066,000	$	9,956,216
Nissan Chemical Industries Ltd.	1,066,000		9,618,891
Nitto Denko Corp.1	533,000		29,183,775
Shin-Etsu Chemical Co. Ltd.	1,172,600		48,012,677
Showa Denko K.K.1	3,198,000		8,371,808
Sumitomo Bakelite Co. Ltd.1	1,066,000		7,012,284
Sumitomo Chemical Co. Ltd.	4,264,000		22,815,477
Taiyo Nippon Sanso Corp.1	1,066,000		6,654,514
Tosoh Corp.1	2,132,000		11,223,743
Ube Industries Ltd.1,2	3,198,000		6,010,528
			277,567,857
COMMERCIAL SERVICES – 1.15%
Benesse Corp.1	213,200		7,339,387
Dai Nippon Printing Co. Ltd.	2,132,000		36,001,841
Kamigumi Co. Ltd.	1,066,000		8,658,024
TIS Inc.1	106,600		4,507,897
Toppan Printing Co. Ltd.	2,132,000		22,692,813
			79,199,962
COMPUTERS – 1.40%
CSK Corp.1	213,200		9,649,556
Fujitsu Ltd.	6,396,000		42,196,366
Itochu Techno-Science Corp.1	106,600		4,068,351
Meitec Corp.1	106,600		3,669,694
NET One Systems Co. Ltd.1	2,132		6,460,296
TDK Corp.	426,400		30,952,179
			96,996,442
COSMETICS & PERSONAL CARE – 1.16%
Aderans Co. Ltd.1	106,600		2,529,942
Kanebo Ltd.1,2	214,000		2,671,794
Kao Corp.	2,132,000		50,701,060
Shiseido Co. Ltd.1	1,066,000		14,556,111
Uni-Charm Corp.1	213,200		9,506,449
			79,965,356
DISTRIBUTION & WHOLESALE – 2.41%
Itochu Corp.2	5,330,000		28,212,686
Marubeni Corp.	5,330,000		17,172,940
Mitsubishi Corp.1	4,264,000		58,265,331
Mitsui & Co. Ltd.1	4,264,000		43,586,556
Sumitomo Corp.	2,132,000		19,360,445
			166,597,958
DIVERSIFIED FINANCIAL SERVICES – 4.26%
ACOM Co. Ltd.	245,180		16,904,101
Aeon Credit Service Co. Ltd.1	106,690		7,233,047
AIFUL Corp.	159,900		18,368,912
Credit Saison Co. Ltd.1	533,000		18,910,678
Daiwa Securities Group Inc.	4,264,000		29,153,109
Nikko Cordial Corp.1	5,330,000		26,526,058
Nomura Holdings Inc.	6,396,000		88,501,971
ORIX Corp.1	319,800		41,644,378
Promise Co. Ltd.	319,800		22,355,487
Takefuji Corp.	351,150		25,085,750
			294,683,491
ELECTRIC – 4.29%
Chubu Electric Power Co. Inc.1	2,451,800		58,776,430
Electric Power Development Co. Ltd.2	533,000		17,070,720
Kansai Electric Power Co. Inc. (The)	2,665,000		53,282,112
Kyushu Electric Power Co. Inc.	1,599,000		34,805,869
Tohoku Electric Power Co. Inc.1	1,812,200		33,503,587
Tokyo Electric Power Co. Inc. (The)	4,050,800		99,439,497
			296,878,215
ELECTRICAL COMPONENTS & EQUIPMENT – 4.15%
Casio Computer Co. Ltd.1	1,066,000		13,973,457
Fujikura Ltd.1	1,066,000		5,008,774
Furukawa Electric Co. Ltd.1,2	2,132,000		10,978,415
Hitachi Cable Ltd.	1,066,000		4,599,895
Hitachi Ltd.	10,660,000		67,771,780
Mitsubishi Electric Corp.	6,396,000		33,671,228
SANYO Electric Co. Ltd.1	5,330,000		17,990,699
Sharp Corp.	3,198,000		51,120,161
Stanley Electric Co. Ltd.1	746,200		11,591,734
Sumitomo Electric Industries Ltd.	2,132,000		23,551,460
Toshiba Corp.1	10,660,000		47,021,144
			287,278,747
ELECTRONICS – 5.21%
Advantest Corp.1	319,800		27,814,029
Alps Electric Co. Ltd.1	1,066,000		16,334,737
Dainippon Screen Manufacturing Co. Ltd.1	1,066,000		7,094,059
Fanuc Ltd.	533,000		35,163,638
Hirose Electric Co. Ltd.1	106,600		11,857,506
Keyence Corp.	106,620		25,907,377

4 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI JAPAN INDEX FUND

February 28, 2005

Security	Shares	Value
Kyocera Corp.	639,600	$	47,961,567
Mabuchi Motor Co. Ltd.	106,600		6,756,734
Minebea Co. Ltd.1	1,066,000		4,886,110
Murata Manufacturing Co. Ltd.	852,800		47,266,472
NEC Corp.	6,396,000		41,644,378
NGK Insulators Ltd.1	1,066,000		11,162,411
Omron Corp.	852,800		19,871,544
Secom Co. Ltd.	1,066,000		44,158,987
Yokogawa Electric Corp.1	852,800		12,339,984
			360,219,533
ENGINEERING & CONSTRUCTION – 0.94 %
Kajima Corp.1	3,198,000		13,217,031
Nishimatsu Construction Co. Ltd.1	1,066,000		4,150,127
Obayashi Corp.	2,132,000		13,554,356
Okumura Corp.1	1,066,000		6,736,290
Shimizu Corp.1	2,132,000		10,508,203
Taisei Corp.1	3,198,000		11,867,728
Toda Corp.	1,066,000		5,264,324
			65,298,059
ENTERTAINMENT – 0.38%
Oriental Land Co. Ltd.1	213,200		14,024,567
Toho Co. Ltd.1	746,200		12,092,611
			26,117,178
FOOD – 1.40%
Ajinomoto Co. Inc.	2,132,000		26,352,285
Ariake Japan Co. Ltd.1	113,330		2,711,400
Katokichi Co. Ltd.	213,200		4,375,011
Kikkoman Corp.1	1,066,000		11,080,635
Meiji Dairies Corp.1	1,066,000		6,102,527
Meiji Seika Kaisha Ltd.1	1,066,000		5,376,765
Nichirei Corp.1	1,066,000		4,139,905
Nippon Meat Packers Inc.	1,066,000		14,821,882
Nisshin Seifun Group Inc.	1,066,000		11,663,288
Nissin Food Products Co. Ltd.	319,800		8,540,471
Snow Brand Milk Products Co. Ltd.1,2	533,000		1,732,627
			96,896,796
FOREST PRODUCTS & PAPER – 0.50 %
Nippon Paper Group Inc.	3,198		15,700,973
OJI Paper Co. Ltd.1	3,198,000		18,736,904
			34,437,877
GAS – 0.89%
Osaka Gas Co. Ltd.	7,462,000		22,539,483
Tokyo Gas Co. Ltd.1	9,594,000		38,731,112
			61,270,595
HAND & MACHINE TOOLS – 0.79%
Fuji Electric Holdings Co. Ltd.	2,132,000		6,603,404
Nidec Corp.1	106,600		13,012,590
SMC Corp.	213,200		26,025,181
THK Co. Ltd.1	426,400		9,261,121
			54,902,296
HEALTH CARE-PRODUCTS – 1.01%
Hoya Corp.	426,400		46,407,824
Terumo Corp.1	746,200		23,398,130
			69,805,954
HOME BUILDERS – 0.92%
Daiwa House Industry Co. Ltd.	2,132,000		24,389,663
Sekisui Chemical Co. Ltd.	2,132,000		15,864,525
Sekisui House Ltd.	2,132,000		23,571,904
			63,826,092
HOME FURNISHINGS – 3.59%
Matsushita Electric Industrial Co. Ltd.1	7,462,015		111,982,102
Sony Corp.1	3,304,600		126,435,768
Yamaha Corp.	639,600		9,659,779
			248,077,649
HOUSEWARES – 0.13%
Toto Ltd.1	1,066,000		9,220,233
			9,220,233
INSURANCE – 2.46%
Millea Holdings Inc.	5,330		78,198,207
Mitsui Sumitomo Insurance Co. Ltd.	4,264,000		37,984,907
Sompo Japan Insurance Inc.1	2,132,000		22,692,813
T&D Holdings Inc.2	585,950		31,240,178
			170,116,105
INTERNET – 1.49%
Rakuten Inc.	10,170		9,206,003
Softbank Corp.1	852,800		37,044,484
Trend Micro Inc.1	533,000		24,839,431
Yahoo! Japan Corp.1,2	6,389		32,164,022
			103,253,940

SCHEDULE OF INVESTMENTS 5

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI JAPAN INDEX FUND

February 28, 2005

Security	Shares	Value
IRON & STEEL – 2.36%
JFE Holdings Inc.	1,812,250	$	55,956,705
Kobe Steel Ltd.1	8,528,000		15,537,421
Nippon Steel Corp.1	21,320,000		58,878,650
Nisshin Steel Co. Ltd.	3,198,000		8,893,129
Sumitomo Metal Industries Ltd.	13,858,000		23,786,565
			163,052,470
LEISURE TIME – 0.42%
Namco Ltd.1	425,700		5,857,788
Sega Sammy Holdings Inc.1,2	214,000		13,420,530
Shimano Inc.	319,800		9,966,438
			29,244,756
MACHINERY - CONSTRUCTION & MINING – 0.35%
Komatsu Ltd.	3,198,000		24,042,116
			24,042,116
MACHINERY - DIVERSIFIED – 0.94%
Amada Co. Ltd.	1,066,000		7,012,284
Ebara Corp.1	1,066,000		4,967,886
Kubota Corp.	3,198,000		17,632,929
Sumitomo Heavy Industries Ltd.1,2	2,132,000		9,404,229
Toyota Industries Corp.	959,400		26,219,399
			65,236,727
MANUFACTURING – 2.33%
Fuji Photo Film Co. Ltd.	1,596,900		60,485,736
Ishikawajima-Harima Heavy Industries Co. Ltd.1,2	4,264,000		6,910,064
Kawasaki Heavy Industries Ltd.1	5,330,000		9,199,789
Konica Minolta Holdings Inc.	1,599,000		19,012,897
Mitsubishi Heavy Industries Ltd.	10,660,000		28,826,006
Nikon Corp.1	1,066,000		13,319,250
Olympus Corp.1	1,066,000		23,510,572
			161,264,314
MEDIA – 0.04%
Fuji Television Network Inc.	1,154		2,511,943
			2,511,943
METAL FABRICATE & HARDWARE – 0.26%
NSK Ltd.	2,132,000		11,305,518
NTN Corp.1	1,066,000		6,347,855
			17,653,373
MINING – 0.61%
Dowa Mining Co. Ltd.1	1,066,000		7,881,153
Mitsubishi Materials Corp.1	3,198,000		8,341,142
Mitsui Mining & Smelting Co. Ltd.	2,132,000		9,813,108
Sumitomo Metal Mining Co. Ltd.1	2,132,000		16,293,849
			42,329,252
OFFICE & BUSINESS EQUIPMENT – 3.04 %
Canon Inc.	2,984,800		157,991,044
Ricoh Co. Ltd.	2,132,000		39,783,976
Seiko Epson Corp.	319,800		12,634,377
			210,409,397
OIL & GAS – 1.04%
Nippon Mining Holdings Inc.	2,132,000		12,695,709
Nippon Oil Corp.	5,330,500		39,869,492
Teikoku Oil Co. Ltd.1	1,066,000		8,157,146
TonenGeneral Sekiyu K.K.	1,066,000		11,101,079
			71,823,426
PACKAGING & CONTAINERS – 0.22 %
Toyo Seikan Kaisha Ltd.1	852,800		15,022,233
			15,022,233
PHARMACEUTICALS – 5.21%
Chugai Pharmaceutical Co. Ltd.1	1,066,000		15,619,198
Daiichi Pharmaceutical Co. Ltd.1	959,400		24,793,432
Eisai Co. Ltd.1	959,400		32,475,255
Fujisawa Pharmaceutical Co. Ltd.	1,066,000		26,781,608
Kyowa Hakko Kogyo Co. Ltd.	1,066,000		8,146,924
Sankyo Co. Ltd.1	1,066,000		24,175,002
Shionogi & Co. Ltd.	1,066,000		14,239,229
Taisho Pharmaceutical Co. Ltd.1	1,066,000		22,181,713
Takeda Pharmaceutical Co. Ltd.	3,198,000		153,636,477
Yamanouchi Pharmaceutical Co. Ltd.1	1,066,000		37,923,575
			359,972,413
REAL ESTATE – 1.44%
Daito Trust Construction Co. Ltd.1	319,800		13,186,365
Leopalace21 Corp.	426,400		7,118,592
Mitsubishi Estate Co. Ltd.1	3,198,000		39,007,105
Mitsui Fudosan Co. Ltd.	2,132,000		26,556,725
Sumitomo Realty & Development Co. Ltd.1	1,066,000		13,666,798
			99,535,585

6 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI JAPAN INDEX FUND

February 28, 2005

Security	Shares	Value
RETAIL – 3.78%
Aeon Co. Ltd.1	1,864,200	$	29,870,817
Aoyama Trading Co. Ltd.	213,200		5,652,759
Autobacs Seven Co. Ltd.1	106,600		3,434,588
Citizen Watch Co. Ltd.1	1,066,000		9,853,996
Daimaru Inc. (The)1	1,066,000		9,424,673
FamilyMart Co. Ltd.1	213,200		6,358,076
Fast Retailing Co. Ltd.1	213,200		14,147,231
Isetan Co. Ltd.1	959,400		12,263,319
Ito-Yokado Co. Ltd.1	1,066,000		44,158,987
Lawson Inc.1	213,200		8,136,702
Marui Co. Ltd.	1,066,000		14,014,346
Mitsukoshi Ltd.1	1,066,000		5,356,321
Saizeriya Co. Ltd.1	213,290		3,341,956
Seven-Eleven Japan Co. Ltd.1	1,172,600		35,756,513
Shimachu Co. Ltd.1	213,200		5,202,992
Shimamura Co. Ltd.1	106,600		7,410,941
Takashimaya Co. Ltd.1	1,066,000		10,671,755
UNY Co. Ltd.	1,066,000		12,654,821
USS Co. Ltd.1	95,940		7,543,827
Yamada Denki Co. Ltd.1	319,800		15,946,301
			261,200,921
SEMICONDUCTORS – 1.30%
NEC Electronics Corp.1	106,600		5,949,197
Rohm Co. Ltd.	426,400		43,014,125
Tokyo Electron Ltd.1	639,652		41,157,069
			90,120,391
SHIPBUILDING – 0.09%
Mitsui Engineering & Shipbuilding Co. Ltd.1	3,198,000		6,041,195
			6,041,195
SOFTWARE – 0.23%
Capcom Co. Ltd.1	319,800		3,222,993
Konami Corp.	319,800		7,283,166
Oracle Corp.1	106,600		5,274,546
			15,780,705
TELECOMMUNICATIONS – 3.32%
Nippon Telegraph & Telephone Corp.	19,188		83,350,089
NTT Data Corp.1	5,330		18,859,567
NTT DoCoMo Inc.	69,290		118,268,399
Oki Electric Industry Co. Ltd.1,2	2,132,000		9,322,453
			229,800,508
TEXTILES – 0.94%
Kuraray Co. Ltd.	1,066,000		9,731,333
Mitsubishi Rayon Co. Ltd.	2,132,000		7,625,603
Nisshinbo Industries Inc.1	1,066,000		8,627,358
Teijin Ltd.1	3,198,000		13,339,694
Toray Industries Inc.	4,264,000		20,157,760
Toyobo Co. Ltd.	2,132,000		5,417,654
			64,899,402
TOYS, GAMES & HOBBIES – 0.63%
Bandai Co. Ltd.1	359,399		7,685,283
Nintendo Co. Ltd.	320,500		35,650,381
			43,335,664
TRANSPORTATION – 4.29%
Central Japan Railway Co.1	3,198		27,599,367
East Japan Railway Co.	11,726		62,630,119
Kawasaki Kisen Kaisha Ltd.1	2,132,000		16,028,077
Keihin Electric Express Railway Co. Ltd.1	2,132,000		13,574,800
Keio Electric Railway Co. Ltd.	2,132,000		12,675,265
Kintetsu Corp.1	5,330,000		17,786,259
Mitsui O.S.K. Lines Ltd.1	3,198,000		22,018,162
Nippon Express Co. Ltd.	3,198,000		16,375,625
Nippon Yusen Kabushiki Kaisha	4,264,000		25,636,746
Seino Transportation Co. Ltd.1	1,066,000		10,232,210
Tobu Railway Co. Ltd.1	3,198,000		12,849,039
Tokyu Corp.	3,198,000		17,203,606
West Japan Railway Co.1	6,396		25,268,754
Yamato Transport Co. Ltd.	1,066,000		16,978,722
			296,856,751
VENTURE CAPITAL – 0.10%
JAFCO Co. Ltd.1	106,600		6,685,180
			6,685,180
TOTAL COMMON STOCKS (Cost: $6,090,602,809)			6,909,364,991

SCHEDULE OF INVESTMENTS 7

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI JAPAN INDEX FUND

February 28, 2005

Security	Principal		Value
SHORT-TERM INVESTMENTS – 21.34%
COMMERCIAL PAPER3 – 5.01%
Amstel Funding Corp. 2.95%, 08/19/05	$	2,954,019	$	2,912,626
Amsterdam Funding Corp. 2.53%, 03/01/05 - 03/10/05		7,817,498		7,814,353
ANZ National Bank Ltd. 2.94%, 08/15/05		3,553,408		3,505,028
Barton Capital Corp. 2.53% - 2.54%, 03/07/05 - 03/17/05		15,724,329		15,711,631
Blue Ridge Asset Funding Corp. 2.53%, 03/23/05		7,817,498		7,805,412
Bryant Park Funding LLC 2.50%, 03/16/05		710,682		709,941
Chariot Funding LLC 2.54%, 03/21/05		7,106,817		7,096,788
Chesham Finance LLC 2.55%, 03/04/05		2,842,727		2,842,123
Corporate Asset Funding 2.55%, 03/24/05		3,553,408		3,547,619
CRC Funding LLC 2.53%, 03/11/05		1,776,704		1,775,456
Delaware Funding Corp. 2.53% - 2.54%, 03/09/05 - 03/22/05		13,179,023		13,164,406
DEPFA Bank PLC 2.28%, 05/03/05		3,553,408		3,539,261
Edison Asset Securitization 2.26% - 2.53%, 03/07/05 - 05/04/05		23,097,154		23,055,469
Fairway Finance LLC 2.53% - 2.54%, 03/09/05 - 03/22/05		6,775,070		6,767,726
Falcon Asset Securitization Corp. 2.53% - 2.54%, 03/14/05 - 03/18/05		27,401,184		27,369,193
Ford Credit Auto Receivables 2.28% - 2.55%, 03/15/05 - 04/27/05		16,502,028		16,471,707
Ford Credit Floorplan Motown 2.54% - 2.56%, 03/04/05 - 03/18/05		8,883,521		8,879,869
Fortis Funding LLC 2.35%, 05/09/05		9,949,543		9,904,729
General Electric Capital Corp. 2.53% - 2.74%, 03/08/05 - 07/07/05		15,634,996		15,594,435
Giro Funding US Corp. 2.54%, 03/14/05 - 03/18/05		8,567,338		8,558,202
Grampian Funding LLC 2.49% - 3.00%, 03/23/05 - 08/22/05		20,965,109		20,707,232
Jupiter Securitization Corp. 2.53%, 03/03/05 - 03/22/05		32,423,429		32,394,020
Kitty Hawk Funding Corp. 2.54%, 03/15/05		10,660,225		10,649,716
Liberty Street Funding Corp. 2.53% - 2.54%, 03/14/05 - 03/16/05		3,908,749		3,904,921
Moat Funding LLC 2.50%, 03/23/05		1,421,363		1,419,192
Nordea North America Inc. 2.74%, 07/11/05		3,553,408		3,517,708
Park Avenue Receivables Corp. 2.53%, 03/10/05 - 03/11/05		11,100,990		11,093,463
Park Granada LLC 2.55% - 2.58%, 03/18/05 - 03/21/05		4,974,772		4,968,429
Preferred Receivables Funding Corp. 2.53% - 2.54%, 03/14/05 - 03/21/05		15,100,493		15,079,616
Ranger Funding Co. LLC 2.54%, 03/04/05		2,113,354		2,112,907
Santander Central Hispano 2.75%, 07/08/05		8,883,521		8,796,140
Scaldis Capital LLC 2.75%, 07/08/05		1,778,694		1,761,166
Ticonderoga Master Funding Ltd. 2.54% - 2.57%, 03/21/05 - 03/24/05		12,052,308		12,034,655

8 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI JAPAN INDEX FUND

February 28, 2005

Security	Principal		Value
Tulip Funding Corp. 2.54% - 2.55%, 03/01/05	$	11,863,125	$	11,863,125
UBS Finance (Delaware) 2.62%, 03/01/05		14,213,633		14,213,633
Windmill Funding Corp. 2.55%, 03/08/05		2,487,386		2,486,152
Yorktown Capital LLC 2.53%, 03/17/05		2,487,386		2,484,589
				346,512,638
FLOATING RATE NOTES3 – 7.86%
Allstate Life Global Funding II 2.58%, 01/10/064		3,269,136		3,269,246
American Express Centurion Bank 2.58%, 01/24/06		10,660,225		10,660,225
American Express Credit Corp. 2.68%, 10/26/05		14,213,633		14,218,318
Bank of Nova Scotia 2.52% - 2.57%, 09/26/05 - 01/03/06		4,619,431		4,618,240
Beta Finance Inc. 2.53% - 2.79%, 03/15/05 - 10/27/05		26,650,562		26,652,673
Canadian Imperial Bank of Commerce 2.52% - 2.61%, 09/13/05 - 12/14/05		24,163,176		24,158,438
CC USA Inc. 2.53% - 2.66%, 05/04/05 - 07/29/05		14,213,633		14,212,505
Commodore CDO Ltd. 2.55%, 12/12/05		1,776,704		1,776,704
Den Danske Bank NY 2.52% - 2.60%, 08/12/05 - 10/17/05		21,320,450		21,317,116
DEPFA Bank PLC 2.47%, 12/15/05		7,106,817		7,106,817
Dorada Finance Inc. 2.66%, 07/29/05		5,898,658		5,897,929
Fairway Finance LLC 2.55%, 03/14/05 - 06/20/05		10,660,225		10,660,117
Fifth Third Bancorp 2.57%, 02/23/064		14,213,633		14,213,633
Five Finance Inc. 2.62% - 2.64%, 04/29/05 - 02/27/06		9,238,862		9,239,233
General Electric Capital Corp. 2.69%, 03/09/06		3,198,067		3,202,509
General Electric Commercial Equipment Financing LLC 2.56%, 11/20/05		3,035,170		3,035,170
Hartford Life Global Funding Trust 2.58%, 02/15/06		7,106,817		7,106,817
HBOS Treasury Services PLC 2.55% - 2.56%, 01/10/06 - 01/24/06		21,320,450		21,320,451
K2 USA LLC 2.55% - 2.64%, 06/10/05 - 02/15/06		31,980,675		31,981,046
Leafs LLC 2.60%, 01/20/06 - 02/21/064		7,462,157		7,462,157
Links Finance LLC 2.54% - 2.77%, 04/15/05 - 02/06/06		29,137,948		29,145,386
Lothian Mortgages PLC 2.61%, 01/24/06		14,213,633		14,213,633
MetLife Funding Inc. 2.58%, 03/06/06		10,660,225		10,660,225
National City Bank (Ohio) 2.52% - 2.58%, 06/10/05 - 08/09/05		17,767,041		17,765,743
Nationwide Building Society 2.58% - 2.64%, 01/06/06 - 01/27/064		26,295,221		26,300,762
Norddeutsche Landesbank 2.63%, 07/27/05		7,106,817		7,105,802
Northern Rock PLC 2.60% - 2.62%, 10/25/05 - 02/03/064		21,320,450		21,320,450
Permanent Financing PLC 2.54% - 2.57%, 03/10/05 - 09/12/05		19,188,405		19,188,405

SCHEDULE OF INVESTMENTS 9

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI JAPAN INDEX FUND

February 28, 2005

Security	Shares or Principal		Value
Sedna Finance Inc. 2.56%, 01/10/06 - 01/17/06	$	3,908,749	$	3,907,942
Sigma Finance Inc. 2.54% - 2.79%, 08/17/05 - 01/09/06		36,244,764		36,246,517
Tango Finance Corp. 2.55% - 2.74%, 04/07/05 - 09/15/05		21,867,675		21,866,767
Wachovia Asset Securitization Inc. 2.64%, 03/25/05		21,320,450		21,320,450
Wells Fargo & Co. 2.56%, 03/15/064		3,553,408		3,553,920
WhistleJacket Capital LLC 2.45% - 2.57%, 06/15/05 - 01/17/06		24,873,858		24,871,700
White Pine Finance LLC 2.54% - 2.80%, 03/29/05 - 01/13/06		38,874,287		38,871,407
Winston Funding Ltd. 2.75%, 04/25/05		5,074,267		5,074,267
				543,522,720
MEDIUM-TERM NOTES3 – 0.10%
CC USA Inc. 1.29%, 04/15/054		7,106,817		7,106,729
				7,106,729
MONEY MARKET FUNDS3 – 0.52%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares5		31,982,217		31,982,217
BlackRock Temp Cash Money Market Fund		1,325,367		1,325,367
Short-Term Investment Co. - Prime Money Market Portfolio, Institutional Shares		2,681,582		2,681,582
				35,989,166
Security	Principal		Value
REPURCHASE AGREEMENTS3 – 4.01%
Bank of America N.A. Repurchase Agreements, dated 2/28/05, due 3/1/05, with a total maturity value of $159,915,054 and effective yields of 2.62% - 2.63%.6	$	159,903,374	$	159,903,374
Merrill Lynch Government Securities Inc. Repurchase Agreement, dated 2/28/05, due 3/1/05, with a maturity value of $117,271,040 and an effective yield of 2.63%.6		117,262,474		117,262,474
				277,165,848
TIME DEPOSITS3 – 3.56%
Abbey National Treasury Services PLC 1.39%, 04/08/05		4,974,772		4,974,694
Banco Bilbao Vizcaya Argentaria SA 2.50% - 2.51%, 03/21/05 - 03/22/05		10,660,225		10,660,240
BNP Paribas (New York) 2.78% - 3.03%, 07/11/05 - 08/23/05		9,949,543		9,949,544
Credit Suisse First Boston 2.55%, 03/22/05		7,106,817		7,106,817
Deutsche Bank AG 2.51%, 03/01/05		11,835,242		11,835,242
First Tennessee Bank 2.53%, 03/14/05 - 03/21/05		17,767,041		17,767,041
HBOS Treasury Services PLC 1.24% - 2.50%, 03/22/05 - 04/01/05		11,655,179		11,655,141
Key Bank N.A. 2.51% - 2.55%, 03/01/05 - 03/18/05		42,640,899		42,640,900
Natexis Banques 2.50% - 2.98%, 03/22/05 - 08/18/05		12,436,929		12,436,929
Norddeutsche Landesbank 2.11%, 06/07/05		7,106,817		7,106,438

10 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES ^® MSCI JAPAN INDEX FUND

February 28, 2005

Security	Principal		Value
Royal Bank of Scotland 2.54%, 03/22/05	$	1,776,704	$	1,776,704
Societe Generale 2.53%, 03/22/05		710,682		710,682
Toronto-Dominion Bank 1.22% - 2.66%, 03/23/05 - 11/09/05		28,427,266		28,426,020
UBS AG 2.67%, 11/09/05		2,842,727		2,842,532
Washington Mutual Bank 2.55%, 03/21/05 - 03/22/05		32,691,357		32,691,357
Wells Fargo Bank N.A. 2.52% - 2.53%, 03/17/05 - 03/22/05		43,706,922		43,706,821
				246,287,102
U.S. GOVERNMENT AGENCY NOTES3 – 0.28%
Federal Home Loan Mortgage Corp. 1.63% - 2.06%, 04/15/05 - 05/31/05		8,517,733		8,501,249
Federal National Mortgage Association 2.33%, 07/22/05		10,660,225		10,561,773
				19,063,022
TOTAL SHORT-TERM INVESTMENTS (Cost: $1,475,647,225)				1,475,647,225
TOTAL INVESTMENTS IN SECURITIES – 121.27% (Cost: $7,566,250,034)				8,385,012,216
Other Assets, Less Liabilities – (21.27%)				(1,470,816,737	)
NET ASSETS – 100.00%			$	6,914,195,479

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

² Non-income earning security.

³ All or a portion of these securities represent an investment of securities lending collateral. See Note 5.

⁴ All or a portion of this security is exempt from registration pursuant to Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

⁵ The Fund’s investment adviser is an affiliate of the issuer. See Note 2.

⁶ Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 2.95% to 7.85% and maturity dates ranging from 8/1/08 to 1/1/44.

See notes to financial statements.

SCHEDULE OF INVESTMENTS 11

Statement of Assets and Liabilities (Unaudited)

iSHARES^®, INC.

February 28, 2005

	iShares MSCI Japan Index Fund
ASSETS
Investments, at cost:
Unaffiliated issuers	$	7,534,267,817
Affiliated issuersa	$	31,982,217
Foreign currency, at cost	$	4,502,250
Investments in securities, at value (including securities on loanb) (Note 1):
Unaffiliated issuers	$	8,353,029,999
Affiliated issuersa		31,982,217
Foreign currency, at value		4,565,281
Receivables:
Investment securities sold		34,024,796
Dividends and interest		3,970,339
Capital shares sold		305,225
Total Assets		8,427,877,857
LIABILITIES
Payables:
Investment securities purchased		35,333,936
Collateral for securities on loan (Note 5)		1,472,092,261
Investment advisory fees (Note 2)		6,256,181
Total Liabilities		1,513,682,378
NET ASSETS	$	6,914,195,479
Net assets consist of:
Paid-in capital	$	6,196,655,307
Distributions in excess of net investment income		(7,067,031	)
Accumulated net realized loss		(94,199,102	)
Net unrealized appreciation on investments and translation of assets and liabilities in foreign currencies		818,806,305
NET ASSETS	$	6,914,195,479
Shares outstanding		639,600,000
Net asset value per share	$	10.81

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

^b Securities on loan with market value of $1,401,598,340. See Note 5.

See notes to financial statements.

12 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statement of Operations (Unaudited)

iSHARES^®, INC.

For the six months ended February 28, 2005

	iShares MSCI Japan Index Fund
NET INVESTMENT INCOME
Dividendsa	$	26,207,482
Interest from affiliated issuersb		25,935
Securities lending incomec		952,489
Total investment income		27,185,906
EXPENSES (Note 2)
Investment advisory fees		17,973,433
Total expenses		17,973,433
Net investment income		9,212,473
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments		(12,052,224	)
In-kind redemptions		35,036,341
Foreign currency transactions		1,736,787
Net realized gain		24,720,904
Net change in unrealized appreciation (depreciation) on:
Investments		554,155,994
Translation of assets and liabilities in foreign currencies		61,426
Net change in unrealized appreciation (depreciation)		554,217,420
Net realized and unrealized gain		578,938,324
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	588,150,797

^a Net of foreign withholding tax of $1,087,126.

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

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

See notes to financial statements.

FINANCIAL STATEMENTS 13

Statements of Changes in Net Assets

iSHARES^®, INC.

	iShares MSCI Japan Index Fund
	For the six months ended February 28, 2005 (Unaudited)			For the year ended August 31, 2004
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	9,212,473		$	10,691,336
Net realized gain		24,720,904			35,554,240
Net change in unrealized appreciation (depreciation)		554,217,420			309,251,117
Net increase in net assets resulting from operations		588,150,797			355,496,693
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(26,096,423	)		(474,213	)
Total distributions to shareholders		(26,096,423	)		(474,213	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		597,123,165			4,011,503,336
Cost of shares redeemed		(108,313,704	)		(230,049,073	)
Net increase in net assets from capital share transactions		488,809,461			3,781,454,263
INCREASE IN NET ASSETS		1,050,863,835			4,136,476,743
NET ASSETS:
Beginning of period		5,863,331,644			1,726,854,901
End of period	$	6,914,195,479		$	5,863,331,644
Undistributed (distributions in excess of) net investment income included in net assets at end of period	$	(7,067,031	)	$	9,816,919
SHARES ISSUED AND REDEEMED:
Shares sold		57,600,000			408,600,000
Shares redeemed		(10,800,000	)		(24,000,000	)
Net increase in shares outstanding		46,800,000			384,600,000

See notes to financial statements.

14 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Japan Index Fund
	Six months ended Feb. 28, 2005 (Unaudited)			Year ended Aug. 31, 2004			Year ended Aug. 31, 2003			Year ended Aug. 31, 2002			Year ended Aug. 31, 2001			Year ended Aug. 31, 2000
Net asset value, beginning of period	$	9.89		$	8.29		$	7.77		$	9.07		$	13.82		$	13.22
Income from investment operations:
Net investment income (loss)a		0.02			0.03			0.00	c		(0.01	)		(0.01	)		(0.05	)
Net realized and unrealized gain (loss)		0.94			1.57			0.52			(1.29	)		(4.74	)		1.21
Total from investment operations		0.96			1.60			0.52			(1.30	)		(4.75	)		1.16
Less distributions from:
Net investment income		(0.04	)		(0.00	)e		—			—			—			(0.00	)e
Net realized gain		—			—			—			—			—			(0.53	)
Return of capital		—			—			—			—			—			(0.03	)
Total distributions		(0.04	)		(0.00	)e		—			—			—			(0.56	)
Net asset value, end of period	$	10.81		$	9.89		$	8.29		$	7.77		$	9.07		$	13.82
Total return		9.75	%b		19.32	%		6.69	%		(14.33	)%		(34.37	)%		8.75	%
Ratios/Supplemental data:
Net assets, end of year (000s)	$	6,914,195		$	5,863,332		$	1,726,855		$	666,376		$	527,899		$	787,790
Ratio of expenses to average net assetsc		0.58	%		0.64	%f		0.84	%		0.84	%		0.84	%		0.88	%
Ratio of net investment income (loss) to average net assetsc		0.30	%		0.28	%g		0.03	%		(0.12	)%		(0.11	)%		(0.32	)%
Portfolio turnover rated		1	%		5	%		2	%		2	%		21	%		22	%

^a Based on average shares outstanding throughout each period.

^b Not annualized.

^c Annualized for periods of less than one year.

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

^e Rounds to less than $0.01.

^f Ratio of expenses to average net assets prior to reimbursed distribution fees for the year ended August 31, 2004 was 0.78%.

^g Ratio of net investment income to average net assets prior to reimbursed distribution fees for the year ended August 31, 2004 was 0.14%.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 15

Notes to the Financial Statements (Unaudited)

iSHARES^®, INC.

1. SIGNIFICANT ACCOUNTING POLICIES

iShares, Inc. (the “Company”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Company was incorporated under the laws of the State of Maryland on September 1, 1994 pursuant to amended and restated Articles of Incorporation. As of February 28, 2005, the Company offered 24 investment portfolios or funds.

These financial statements relate only to the iShares MSCI Japan 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 publicly traded equity securities in the aggregate in the Japanese equity market, as measured by the MSCI Japan Index compiled by Morgan Stanley Capital International Inc. (“MSCI”). The investment adviser utilizes 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 stocks in 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 foreign issuers of a single country, which 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; lesser 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.

Under the Company’s organizational documents, the Fund’s officers and directors 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.

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

Certain prior year amounts in the financial statements have been reclassified to be consistent with the current period presentation. The reclassifications had no impact on prior year net assets, net income or distributions.

SECURITY VALUATION

The securities of the Fund are valued primarily on the basis of market prices. Debt securities maturing in 60 days or less and short-term investments are valued at amortized cost.

16 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to the Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

Securities held under a repurchase agreement are valued at a price equal to the amount of the cash investment at the time of valuation on the valuation date. The market values of the underlying securities are determined in accordance with the above discussed valuation methods, as appropriate, for the purpose of determining the adequacy of collateral.

Securities of investment companies, other than investment companies whose shares are traded on an exchange, are valued at the investment company’s published net asset value per share.

Any securities, including restricted securities or other assets for which market quotations are not readily available, or for which a significant event has occurred since the time of the most recent market quotation, are valued in accordance with fair value pricing policies approved by the Board of Directors of the Company (the “Board”).

SECURITY TRANSACTIONS AND INCOME RECOGNITION

Security transactions are accounted for on trade date. Dividend income is recognized on the ex-dividend date and interest income is accrued daily. Realized gains and losses on investment transactions are determined using the specific identification method.

FOREIGN CURRENCY TRANSLATION

The Fund’s accounting records are maintained in U.S. dollars. Purchases and sales of securities, income receipts and expense payments are translated into U.S. dollars at the prevailing exchange rate on the respective dates of such transactions.

Foreign currencies, investment securities and assets and liabilities denominated in foreign currencies are converted into U.S. dollars using exchange rates deemed appropriate by the investment adviser. Any use of a different rate from the rates used by MSCI may adversely affect the Fund’s ability to track its underlying index.

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.

DISTRIBUTIONS TO SHAREHOLDERS

Distributions to shareholders from net investment income, if any, including any net foreign currency gains, are declared and distributed at least annually. Distributions of net realized 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 August 31, 2004, the tax year-end of the Fund, the components of distributable earnings on a tax basis consisted of undistributed ordinary income of $12,922,546, unrealized appreciation of $225,179,965 and capital and other losses of $82,616,713, for net distributable earnings of $155,485,798.

For the six months ended February 28, 2005 and for the year ended August 31, 2004, 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.

NOTES TO THE FINANCIAL STATEMENTS 17

Notes to the Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

FEDERAL INCOME TAXES

The Fund is treated as an entity separate from the Company’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 net income and any net gains (taking into account any capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income and excise taxes. Accordingly, no provision for federal income taxes was required for the six months ended February 28, 2005.

As of August 31, 2004, the tax year-end of the Fund, the Fund had tax basis net capital loss carryforwards of $2,959,030, $62,572,173, $3,621,148 and $5,594,562 expiring in 2009, 2010, 2011 and 2012, respectively. Such losses may be applied against any net realized taxable gains in each succeeding year, or until their respective expiration date, 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 mark-to-market gains.

As of February 28, 2005, the cost of investments for federal income tax purposes was $7,606,280,098. Net unrealized appreciation aggregated $778,732,118, of which $908,734,710 represented gross unrealized appreciation on securities and $130,002,592 represented gross unrealized depreciation on securities.

REPURCHASE AGREEMENTS

The Fund may enter into repurchase agreements with banks and securities dealers. These transactions involve the purchase of securities with a simultaneous commitment to resell the securities to the bank or the dealer at an agreed-upon date and price. A repurchase agreement is accounted for as an investment by the Fund, collateralized by securities, which are delivered to the Fund’s custodian or to an agent bank under a tri-party agreement. The securities are marked-to-market daily and additional securities are acquired as needed, to ensure that their value equals or exceeds the repurchase price plus accrued interest. As of February 28, 2005, a portion of the cash collateral for securities on loan for the Fund was invested in repurchase agreements as disclosed in the Fund’s Schedule of Investments. For further information, see Note 5, below.

2. AGREEMENTS AND OTHER TRANSACTIONS WITH AFFILIATES

Pursuant to an Investment Advisory Agreement with the Company, as amended, 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 of the expenses (“Covered Expenses”) of the Fund, 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 net assets of all the funds offered by the Company (except for the iShares MSCI Brazil, iShares MSCI Emerging Markets, iShares MSCI Pacific ex-Japan, iShares MSCI South Africa, iShares MSCI South Korea, and iShares MSCI Taiwan Index Funds) as follows:

Investment Advisory Fee	Aggregate Net Assets
0.59%	First $7 billion
0.54	Over $7 billion, up to and including $11 billion
0.49	Over $11 billion

18 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to the Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

Barclays Global Investors, N.A. (“BGI”) has a license agreement with MSCI for the use of the MSCI Japan Index. Under a sub-license agreement between BGI and the Fund, the fee for the use of the MSCI Japan Index is paid directly by BGI to MSCI.

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

BGI serves as securities lending agent for the Company. BGI is an affiliate 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 six months ended February 28, 2005, BGI earned securities lending agent fees of $952,489.

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

Pursuant to Rule 17a-7 under the 1940 Act, the Fund executed cross trades for the six months ended February 28, 2005. Cross trading is the buying or selling of portfolio securities between funds to which BGFA (or an affiliate) serves as investment adviser. The Board reviewed all such transactions executed during the first four months of the fiscal half-year and concluded that they were in compliance with the requirements and restrictions set forth in Rule 17a-7. The Board is scheduled at its next meeting to review all such transactions executed during the last two months of the fiscal half-year.

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

The following table provides information about the investment by the Fund in shares of issuers of which BGFA is an affiliate, for the six months ended February 28, 2005, including income earned from these affiliated issuers.

Name of Affiliated Issuer	Number of Shares Held Beginning of Period (in 000s)	Gross Additions (in 000s)	Gross Reductions (in 000s)	Number of Shares Held End of Period (in 000s)	Value at End of Period		Interest Income
IMMF	3,155	141,265	140,865	3,555	$	3,554,964	$	25,935

NOTES TO THE FINANCIAL STATEMENTS 19

Notes to the Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

During the six months ended February 28, 2005, the Fund invested cash collateral from securities on loan in the GMMF, IMMF and PMMF. Due to the nature of the structure of the joint account used for the investment of the collateral for securities on loan, the information reported above for the Fund does not include the Fund’s holdings of the GMMF, IMMF and PMMF in connection with the investment of collateral for securities on loan.

As of February 28, 2005, certain directors and officers of the Company are also officers of BGI.

3. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the six months ended February 28, 2005, aggregated $60,979,141 and $73,338,635, respectively.

In-kind purchases and sales (see Note 4) for the six months ended February 28, 2005, aggregated $593,540,113 and $107,681,442, respectively.

4. CAPITAL SHARE TRANSACTIONS

The Company has authorized 10.9 billion shares of $.001 par value capital stock. As of February 28, 2005, 2,124,600,000 shares were authorized to the Fund.

The Company issues and redeems capital shares of the Fund only in aggregations of a specified number of shares (each, a “Creation Unit”) at net asset value. 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.

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 constituting a portfolio sampling representation of the MSCI Japan Index and an amount of cash. A purchase transaction fee and a redemption transaction fee are charged to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units.

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 is required to have a value of at least 105% of the market value of the loaned securities. The collateral is maintained thereafter, at a value equal to at least 100% of the current market value of the securities on loan. The risks to the Fund of securities lending are that the borrower may not provide additional collateral when required, or may not return the securities when due.

As of February 28, 2005, the Fund had loaned securities which were collateralized by cash. The cash collateral received was invested in a joint account with other funds managed by BGFA, which invests in securities with remaining maturities of 397 days or less, repurchase agreements and money market mutual funds including money market funds managed by BGFA. Repurchase agreements held in the joint account are fully collateralized by U.S. Government securities. Income from the joint account is allocated daily to the Fund, based on the Fund’s portion of the total cash collateral received. The market value of the securities on loan as of February 28, 2005 and the value of the related collateral are disclosed in the Statement of Assets and Liabilities. Securities lending income, which is disclosed in the Fund’s Statement of Operations, is presented net of rebates paid to, or fees paid by, borrowers.

20 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes:

NOTES 21

The iShares^® Family of Funds

The following is a list of iShares Funds being offered, along with their respective exchange trading symbols. Please call iShares at

1-800-iShares (1-800-474-2737) to obtain a prospectus for any iShares Fund. The prospectus contains more complete information, including charges, expenses, investment objectives and risk factors that should be carefully considered to determine if the Fund(s) are an appropriate investment for you. Read the prospectus(es) carefully before investing. Investing involves risk, including possible loss of principal.

iShares S&P Domestic Index Funds

iShares S&P 1500 (ISI)

iShares S&P 500 (IVV)

iShares S&P 500/BARRA Growth (IVW)

iShares S&P 500/BARRA Value (IVE)

iShares S&P MidCap 400 (IJH)

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

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

iShares S&P SmallCap 600 (IJR)

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

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

iShares S&P 100 (OEF)

iShares Sector and Specialty Index Funds

iShares Cohen & Steers Realty Majors (ICF)

iShares Dow Jones Select Dividend (DVY)

iShares Dow Jones Transportation Average (IYT)

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

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

iShares Dow Jones U.S. Consumer Non-Cyclical Sector (IYK)

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

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

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

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

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

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

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

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

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

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

iShares Goldman Sachs Natural Resources (IGE)

iShares Goldman Sachs Networking (IGN)

iShares Goldman Sachs Semiconductor (IGW)

iShares Goldman Sachs Software (IGV)

iShares Goldman Sachs Technology (IGM)

iShares KLD Select Social^SM (KLD)

iShares Nasdaq Biotechnology (IBB)

iShares S&P Global Energy Sector (IXC)

iShares S&P Global Financials Sector (IXG)

iShares S&P Global Healthcare Sector (IXJ)

iShares S&P Global Technology Sector (IXN)

iShares S&P Global Telecommunications Sector (IXP)

iShares Russell Index Funds

iShares Russell 3000 (IWV)

iShares Russell 3000 Growth (IWZ)

iShares Russell 3000 Value (IWW)

iShares Russell 1000 (IWB)

iShares Russell 1000 Growth (IWF)

iShares Russell 1000 Value (IWD)

iShares Russell Midcap (IWR)

iShares Russell Midcap Growth (IWP)

iShares Russell Midcap Value (IWS)

iShares Russell 2000 (IWM)

iShares Russell 2000 Growth (IWO)

iShares Russell 2000 Value (IWN)

iShares International Index Funds

iShares FTSE/Xinhua China 25 (FXI)

iShares MSCI Australia (EWA)

iShares MSCI Austria (EWO)

iShares MSCI Belgium (EWK)

iShares MSCI Brazil (EWZ)

iShares MSCI Canada (EWC)

iShares MSCI EAFE (EFA)

iShares MSCI Emerging Markets (EEM)

iShares MSCI EMU (EZU)

iShares MSCI France (EWQ)

iShares MSCI Germany (EWG)

iShares MSCI Hong Kong (EWH)

iShares MSCI Italy (EWI)

iShares MSCI Japan (EWJ)

iShares MSCI Malaysia (EWM)

iShares MSCI Mexico (EWW)

iShares MSCI Netherlands (EWN)

iShares MSCI Pacific ex-Japan (EPP)

iShares MSCI Singapore (EWS)

iShares MSCI South Africa (EZA)

iShares MSCI South Korea (EWY)

iShares MSCI Spain (EWP)

iShares MSCI Sweden (EWD)

iShares MSCI Switzerland (EWL)

iShares MSCI Taiwan (EWT)

iShares MSCI United Kingdom (EWU)

iShares S&P Europe 350 (IEV)

iShares S&P Global 100 (IOO)

iShares S&P Latin America 40 (ILF)

iShares S&P/TOPIX 150 (ITF)

iShares Bond Funds

iShares GS $ InvesTop^™ Corporate (LQD)

iShares Lehman Aggregate (AGG)

iShares Lehman TIPS (TIP)

iShares Lehman 1-3 Year Treasury (SHY)

iShares Lehman 7-10 Year Treasury (IEF)

iShares Lehman 20+ Year Treasury (TLT)

iShares NYSE Index Funds

iShares NYSE 100 (NY)

iShares NYSE Composite (NYC)

iShares Morningstar Index Funds

iShares Morningstar Large Core (JKD)

iShares Morningstar Large Growth (JKE)

iShares Morningstar Large Value (JKF)

iShares Morningstar Mid Core (JKG)

iShares Morningstar Mid Growth (JKH)

iShares Morningstar Mid Value (JKI)

iShares Morningstar Small Core (JKJ)

iShares Morningstar Small Growth (JKK)

iShares Morningstar Small Value (JKL)

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

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

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

1667-iS-0305

22 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

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

The iShares Funds are not sponsored, endorsed, issued, sold or promoted by Morgan Stanley Capital International, Inc., nor does this company make any representation regarding the advisability of investing in the iShares Funds.

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

Investing involves risk, including possible loss of principal.

A description of the policies that the 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, 2004 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 Securities and Exchange Commission’s website at www.sec.gov.

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

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

BGI-F-037-02005

Item 2. Code of Ethics.

Not applicable to this semi-annual filing.

Item 3. Audit Committee Financial Expert.

Not applicable to this semi-annual filing.

Item 4. Principal Accountant Fees and Services.

Not applicable to this semi-annual filing.

Item 5. Audit Committee of Listed Registrants.

Not applicable to this semi-annual filing.

Item 6. Schedule of Investments.

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

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable to the Registrant.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable to the Registrant.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable to the Registrant.

Item 10. Submission of Matters to a Vote of Security Holders.

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

Item 11. Controls and Procedures.

(a) The President and Principal Financial Officer have concluded that, based on their evaluation as of a date within 90 days of the filing date of this report, the disclosure controls and procedures of the Registrant (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) are reasonably designed to achieve the purposes described in the attached certification, Section 4 (a).

(b) There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the Registrant’s 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) Not applicable to this semi-annual filing.

(a) (2) Section 302 Certifications are attached.

(a) (3) Not applicable to the Registrant.

(b) Section 906 Certifications are attached.

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

iShares, Inc.

By: /s/ Lee T. Kranefuss

Lee T. Kranefuss, President

Date: May 2, 2005

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

By: /s/ Lee T. Kranefuss

Lee T. Kranefuss, President

Date: May 2, 2005

By: /s/ Michael A. Latham

Michael A. Latham, Principal Financial Officer

Date: May 2, 2005

EX-99.CERT

EX-99.CERT

N-CSRS Exhibit for Item 12(a)(2): SECTION 302 CERTIFICATIONS

I, Lee T. Kranefuss, certify that:

1. I have reviewed this report on Form N-CSRS of iShares, Inc.;

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) 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) 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

c) 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 directors (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:	May 2, 2005	/s/    Lee T. Kranefuss
		Lee T. Kranefuss President

EX-99.CERT

N-CSRS Exhibit for Item 12(a)(2): SECTION 302 CERTIFICATIONS

I, Michael A. Latham, certify that:

1. I have reviewed this report on Form N-CSRS of iShares, Inc.;

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) 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) 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

c) 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 directors (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:	May 2, 2005	/s/    Michael A. Latham
		Michael A. Latham Principal Financial Officer

EX-99.906 CERT

Ex.99.906 CERT

N-CSRS 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

Lee T. Kranefuss, President, and Michael A. Latham, Principal Financial Officer, of iShares, Inc. (the “Registrant”), each certify that:

1. The Registrant’s periodic report on Form N-CSRS for the period ended February 28, 2005 (the “Form N-CSRS”) 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:	May 2, 2005	/s/    Lee T. Kranefuss
		Lee T. Kranefuss President
Date:	May 2, 2005	/s/    Michael A. Latham
		Michael A. Latham Principal Financial Officer